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\ J 4 -v - T. S. 101077 15 November 1954 MEMORANDUM FOR; DIRECTOR, CENTRAL INTELLIGENCE t • | YIa : Deputy Director (Plans) SUBJECT? - : Project MKULTRA, Subproject 35 1. This project concerns cover for the DD/F/TSS biological and chemical warfare program and involves an expenditure of ^ $125,000 by CIA arid the resultant expenditure of an additional equal _ amount in matching funds by another element of the Government. In the opinion of the undersigned this total investment of $250, 000 is fully justified because of benefits to the Agency outlined in Tab A, 2. Tab A describes a proposed arrangement whereby th^Ag|^y would mike a single non-recurring grant of $125,000 to theH®^8w*^ —*• Hospital for the c^TrucNon-pj a rne^^^rchzwjngr. using the - out. Agency* sponsored research projects in tliese sensitive fields would be carried out in the hew wing, and Agency employees would be able to participate in the work without the University being aware <of CIA interest. Each P ro ject ^^|d be separ ately funded under •existing procedure's usinj> th cut * out * A gency or fut^h^ c^' projects. This Agency is also ehedur aging thd^^gP^^^pR, ggggg^gg^lto make a contribution of $500, CMM^tothe same construc- tion fund. The Hospital will be aware of the^Mj^donation but not of our encouragement. 4. Project MKULTRA, as previously approved by the DCI, sets up controls and procedures under which TSS spends a percentage of its annual Research and Development budget for highly sensitive projects in certain fields ^including covert biological, chemical and radiological warfare. The establishment of the cover to be provided by Subproject 35 was not in mind when Project MKULTRA 5 Copy # <Z o* 2 copies , ^ r. "T