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an affiliate, it was said, "The minimum annual membership is $1,000 but the memberships range from $1,000 to $10,000 with many companies taking multiple memberships. The School normally

considers this a membership rather than a contribution, but for tax reasons it may be treated either way. Boeing treated a normal business expense, "a dues item." (Tr. 416) Washington State International Trade Fair $4,000.00 The following is taken from a "fact sheet" of the Washington State International Trade Fair (Tab 4.4b):


"The Washington State International Trade Fair is a
State-wide volunteer group of business and community
leaders organized as a non-profit corporation for the
purpose of increasing Washington State's trade and
furthering international understanding. It is the
oldest effort of its type in the United States.

"The Washington State International Trade Fair was
organized in 1950 when a Trade Mission visiting Japan
resulted in the mutual desire for renewal of trade
and friendship. In 1951, the first Annual Fairs
followed with increasing participation from the
Pacific Rim countries, including South America. In
1961, European nations were also exhibiting. By the
conclusion of the twelfth Trade Fair, over 30 countries
had participated; most many times. Thus, a precedent
was set in the post-war years, opening doors of trade
on a non-governmental, private-business basis.

"In the early 1960's the Washington State International
Trade Fair decided to take State goods and services
abroad. This resulted in Washington State Pavilions at
the Tokyo International Trade Fair in 1965, at Osaka in
1966, Tokyo in 1967 and again at Osaka in 1968 and Tokyo
in 1969, where the record showed the greatest number of
sales and contacts to date for the 50 exhibitors in the
Washington State Pavilion. Close cooperation with the
Office of Foreign Trade, Washington State Department
of Commerce & Economic Development, contribute greatly
to the effectiveness ofour overseas programs.

On 6 January 1966, the President of the Fair wrote the following letter to a vice president of the Boeing Company (Tab 4.4c):

"Washington State International Trade Fair is returning
to Japan in 1966 with a Washington State Pavilion at the

Osaka International Trade Fair. The Osaka Fair, one of
the three largest in the world, will be held from April
9 through April 29.

· as at

"The Washington State International Trade Fair has a
long history of helping the Pacific Rim nations develop
markets in our country for their products and has
resultedin a unique relationship between the Far Eastern
nations and the State of Washington. At Osaka
Tokyo last year - Washington will be the only State
permitted to exhibit its products at the Fair. And we
received this favored treatment despite the fact that
many nations were unable to obtain space at the fair

"Our participation in Tokyo in 1965 and our scheduled particpation at the Osaka Fair in 1966 has been met with enthusiastic response by businessmen in our State and in the Far East. It is essential that what was begun in Tokyo be carried on in Osaka. Enclosed for your information is the sales brochure which was sent to manufacturers and organizations in the State of Washington who would be interested in exhibiting at the Osaka Trade Fair in the Washington Pavilion.

"The Washington State International Trade Fair has been underwritten of financed since its inception by contributions from businesses aided by the State of Washington and the Ports of the State.

"If we are to continue our special advantage in the Far East, the financial support from private business in the State must continue.

"Attached is a reminder of the amount you contributed last year. We shall appreciate your pledge as soon as possible although the actual contribution need not be made at this time.

"Your financial assistance at this time can do much to
insure that this important program will continue. We
believe it is a program that offers an unprecedented
opportunity for the expansion of Washiongton State's
foreign trade, and hence the economy of our State.

This was followed on 8 February 1966 by a letter from the Governor of the State of Washington to Mr. Bruce W. Johnson, Director of Public Affairs of Boeing, urging him to become a

member of the 1966 Washington State Orient Trade Mission (Tab 4.4e). Mr. Johnson in an interoffice communication of 21 February 1966 said (Tab 4.4f):

"I discussed the attached letter with you at our meeting on Friday. I do not see how I could take the necessary time out of my schedule to make this trip, and I further do not think I have the budget for it.

"However, the Orient Trade Mission is of great importance
to The Boeing Company and the State of Washington. Since
we have leaned so heavily on the agencies of state govern-
ment to help us with our current problems, I think it would
be in order for us to make a contribution to this mission
in lieu of the participation of a Boeing executive in the
tour. I suppose the budget outlay for a Boeing executive
and his wife would be in the order of $3,000 to $5,000
and that would seem a reasonable amount to contribute."

$3,500 of the recommended sum was approved and paid (Tabs 4.4f and 4.4g). The other $500 of the sum in issue was also paid to the Fair after receipt of a letter (Tab 4.4c) from the president of the Fair in which he said:

"The Washington State International Trade Fair has
been underwritten or financed since its inception
by contributions from business aided by the State
of Washington and the Ports of the State."

It is claimed as a membership fee (Br., p. 84).

26. world Affiars Council of Seattle


A "brief" of this organization (Tab 4.5a) says:

"World Affairs Council of Seattle

"The World Affairs Council of Seattle was formed
as a private, non-profit, non-partisan body to
provide accurate information about world affairs.

"Accurate information about world affairs is presented to members of the World Affairs Council of Seattle in the following manner:

"1. Lectures on world affairs subjects by competent authorities.


Forums such as Executive Seminars for discussions of issues and problems of world affairs.



A discussion group program for systematic
discussion of current problems by individual

Publication and distribution of materials which
will contribute to the general objective and
supplement the oral meetings and discussions
of the Council."

An undated invitation to join this World Affairs Council (Tab 4.5f) gives a schedule of contributions from "Corporate" at $120 or more to "Contributing" at $75 or more. The $1,000 which is the subject of this item finds its explanation in a memorandum to the Dues and Subscription Review Committee (Tab 4.5c) as follows:


"The Council fosters improved international relations through a program of educational forums, hosting foreign visitors and arranging programs for speakers from abroad. Boeing has been a member since 1952 with annual subscriptions varying between $100 and $1,000. Since 1962 the Company has subscribed $500 annually. Mr. Dietrich Schmitz has recommended that the Company increase its 1966 subscription to $1,000. Mr. Jerry Kane strongly supports this recommendation."

Navy League of the U.S.


Thisis the fee for corporate membership in the League (Tab 4.6c), more fully explained under item 16 above.


Effective Citizens Organization


A brief on this organization (Tab 4.7a), now called Public Affairs Council, describes it as a national movement to encourage the business community to become properly involved with better government, employee civic participation, social progress and corporate citizenship.

"The Public Affairs Council serves as the prime motivator, counselor, and information center in the development of day-to-day conduct of hundreds of corporate public affairs programs. It affords professional services to the business community and this Company is fulfilling its role of good corporate citizenship. The Council holds seminars and conferences on items that deal with government, employee civic education, social and economic problems which afflict most of the metropolitan areas and many other subjects that influence the corporation's ability to deal with the environment in which we must perform our contracts."

The costs here claimed comprise four items as follows (Tabs 4.7h and 4.71):

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The brief on this organization (Tab 4.8a) reads as follows:

"The Army Aviation Association of America was formed in 1957 by a small group of senior Army aviation officers in the active Army, the Reserve Forces and industry.

"The purposes of the organization are:




Fostering a public understanding of Army aviation
and arousing a public interest in this segment of
the military forces.

Exchanging ideas and disseminating information pertinent to Army aviation through the media endorsed by the Association.

Stimulating good fellowship nationally, regionally and locally.

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