CONTINUATION OF SECRET 261

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The International Solidarity Fund was established on 30 March 1964 to avoid duplication of financial support efforts on the part of the European CD parties and other CD-oriented groups in Latin America. The name was later changed to the International Solidarity Foundation (FIS) to avoid confusion with the solidarity fund of CSC and other organizations. The FIS operates as an arm of the ECU, with headquarters in Rome. Its most important leaders are: Dr. Johannes Schauff (President of the FIS, a German national, and close personal friend of Konrad Adenauer), Mariano Rumor, Adolf Heukenroth and August Vanistendael (Secretary General of the International Federation of Christian Trade Unions - CISC).

18. Difference in Function of IIS and FIS. From the start of its activities, the Germans and Italians have contributed almost the entire FIS budget (in 1964, for example, Vanistendael contributed only $15,000 from the CISC International Solidarity Fund). FIS appears to be the exclusive European CD channel for organizational support to the Latin American CD parties. While the IIS is its rich partner in the IIS-FIS finance and could easily fund the Latin American parties directly, the FIS channel is preferred by the Germans and has two major advantages: First, since FIS is a regional solidarity instrument with representation (but not contributions) from all the European parties, the responsibility for support to certain controversial Latin parties is watered down and distributed among the European CD collective. Thus a Latin American government or party in connection with the local CD's can easily make a formal démarche to the IIS or the German CD's without fear of embarrassment. Second, it is easier to obfuscate the magnitude of European organizational support to the Christian Democratic movement in Latin America if it is channeled through a quasi-party organization. The Germans have limited IIS funding to less controversial areas -- support to youth and student formation, political training institutes and CLASC training institutes. (See Attachment A for a detailed flow chart.)

CONCLUSIONS:

19. Chilean Communist Penetration of the University. It was noted in Para. 5 above that almost without exception CD strength in the university greatly exceeds the voting strength of the parent party. The same is true of the Communists, and it is a fact that Communist/Christian Democratic strength on the campuses far exceeds their combined strength throughout the hemisphere. Few would disagree with the conclusion that the use of highly organized youth cadres attached to movements projecting an inspirational approach (termed "Inspirationalist" to more accurately characterize the CD movements than "Ideological") are an outgrowth of revolutionary strategies. But in the past few years Communist voting losses in the university have been picked up mainly by the Christian Democrats -- who would assist the Christian Democrats with a steady political input to challenge the Communists' hegemony domination in the university.