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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
"The Washington State International Trade Fair was
"In the early 1960's the Washington State International
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
Osaka International Trade Fair. The Osaka Fair, one of
· as at
"The Washington State International Trade Fair has a
"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
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
$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
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
"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
Publication and distribution of materials which
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):
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
Exchanging ideas and disseminating information pertinent to Army aviation through the media endorsed by the Association.
Stimulating good fellowship nationally, regionally and locally.