I've been reading Prince and Wright’s book David O. McKay and the Rise of Modern Mormonism, and Chapter 12 makes pretty clear that during the strong anti-communist period of the mid-twentieth century, rhetoric in the church, and even from President McKay certainly did equate free agency with some level of political freedom, which seems to contradict my latest post on agency.
In General Conference after the attack on Pearl Harbor, President McKay (then a counselor in the First Presidency) said, “To deprive an intelligent human being of his free agency is to commit the crime of the ages.... So fundamental in man’s eternal progress is his inherent right to choose, that the Lord would defend it even at the price of war” (Conference Report, April 1942, 71-73, quoted in Prince, 280).
That said, I still believe the scriptural reference to agency has little to do with political freedom and more to do with man's innate ability to choose, as in this report about President McKay (then church president) in the Los Angeles Times points out:
"People under Communist domination will some day rise against their rulers, the world leader of the Mormon church predicted today. White-haried Elder David O. McKay, Salt Lake City, said free will – the freedom to choose between right and wrong – is the people’s most valuable possession. ‘No power on earth,’ he said, ‘can take that freedom away’” (“Head of Mormons Predicts Revolt in Red Countries,” Los Angeles Times, April 26, 1954, quoted in Prince, 292). As Prince and Wright observe, President McKay’s prophecy was true.
The second statement suggests that free will, free agency, transcends political constraints as I suggested in my original post.
That said, given the history of that period, it's not hard to see how some members might also make similar arguments to today’s that government policy which is seen to limit political freedoms might also be interpreted as limiting free agency. They can make that argument, but I do not agree with them.