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E3D-A/20929. In accordance with the request contained in Reference A that a study of Identity 1 be made; discussions have been held with Identity 5. He stated that he was well aware of the activities of Identity 1 and that they were closely coupled with the development of the TROCCULT Berlin office. Shortly following the Stock- holm meeting of TROCCULT, Grambo, Identity 6 and others met with Identity 5 in Bar- lin to discuss the advisability of increasing the activities of TROCCULT in Eastern Germany. Identity 5 felt at the time that Grambo and Identity 6 appeared to be the force necessary to get TROCCULT on its feet in West Berlin. It was decided that TROCCULT would form a Berlin office which would be responsible exclusively for East German operations. Although the mission of this office was not initially established, discussion apparently centered about the formation of an underground trade union to oppose the East German FDGB. Identity 6 and Grambo indicated that funds in the amount of DM 1,000,000 would be provisionally available.10. Identity 7, an East German refugee who was an active labor leader and had work- ed with the SFD Ostburo, was designated the chief of the new TIOCCULT office. He commenced work immediately, but it soon became apparent that he was not going to cooperate with either CADCNA or ZRCODIFY Berlin, other than to use the latter's offices. Identity 5 states that efforts were made by West German and Belgian rep- resentatives of TFOCCULT to bring Identity 7 into closer harmony with CADCNA, but those were fruitless. Identity 7 kept knowledge of his activities from ECODIFY members, and it also became apparent that he was not informing TrOCCULT of every- thing either. The latter has evidenced a growing distrust and dislike for Identity 7 which has almost approached the state of complete disassociation. (For recent evidence of TFOCCULT by-passing its own Berlin office, see E3D-A 11223 which des- cribes a TFOCCULT overture to DILINN.)11. Since the TFOCCULT Berlin office was more or less an outgrowth of the 17 June demonstrations, it was natural that Identity 1 would seek a close working associa- tion with that group. An attempt was made, but apparently Identity 7, as an indi- vidual, prevented the establishment of an effective working relationship. On the other hand, CADCNA looked upon the TROCCULT office under the leadership of Identity 7 as an increasingly undesirable element in the Berlin and East German scene. Ac- cording to Identity 5, it was about this time that Boudreau began making overtures to CADCNA, reportedly acting as an "unofficial" representative of Identity 1. Since then, CADCNA apparently has considered Identity 1 as an activity to effect the un- desirable operations of Identity 7 and has reportedly been funneling funds (amounts unknown) to Identity 1, possibly through Boudreau. Identity 5 is aware that CADCNA speaks highly of Boudreau, an observation which has been reported by John W. Kahlert since also.12. Identity 5 reported further that Boudreau has been quite active gaining publi- city for Identity 1. He has, for example, coordinated with Identity 8 in the prep- aration of an article concerning 17 June for Identity 9. During the Fall of 1953, Identity 8 introduced Identity 5 to Boudreau, and since that time, Identity 5 has frequently pressed Identity 5 for U.S. support of Identity 1. Identity 5 says told Boudreau that Identity 1 is completely a labor matter and that proper liaison should be made with either TFOCCULT or ECODIFY. Identity 5 introduced Boudreau to an American representative of the AFL, but there was no indication of the amount of interest the latter organization showed in the activity of Identity 1. Recently, Boudreau published a study of the events of 17 June (this source of funds for this venture is unknown, but Identity 5 suggested that they may have come from CADCNA). Boudreau, giving credit to Identity 1 for the material in this report.SECRET