Eric Bennett in the Chronicle of Higher Education:
Did the CIA fund creative writing in America? The idea seems like the invention of a creative writer. Yet once upon a time (1967, to be exact), Paul Engle received money from the Farfield Foundation to support international writing at the University of Iowa. The Farfield Foundation was not really a foundation; it was a CIA front that supported cultural operations, mostly in Europe, through an organization called the Congress for Cultural Freedom.
Seven years earlier, Engle, then director of the Iowa Writers' Workshop, had approached the Rockefeller Foundation with big fears and grand plans. “I trust you have seen the recent announcement that the Soviet Union is founding a University at Moscow for students coming from outside the country,” he wrote. This could mean only that “thousands of young people of intelligence, many of whom could never get University training in their own countries, will receive education … along with the expected ideological indoctrination.” Engle denounced rounding up students in “one easily supervised place” as a “typical Soviet tactic.” He believed that the United States must “compete with that, hard and by long time planning”—by, well, rounding up foreign students in an easily supervised place called Iowa City. Through the University of Iowa, Engle received $10,000 to travel in Asia and Europe to recruit young writers—left-leaning intellectuals—to send to the United States on fellowship.