[104-10180-10210.pdf — page 4]
# CONTINUATION OF DISPATCH## KAPOK SECRET   HVCA - 14933   Page 24. IDENTITY-3 is a line of liquid fertilizer in which IDENTITY-6 is also interested. However, since the local fertilizer industry enjoys protection in the form of import licensing restrictions, it will take from one to two years of negotiation to determine whether the GOV will permit the importation of this line. Di Gerveno would, in conjunction with IDENTITY-6, represent IDENTITY-1 in the negotiations to obtain such permission. Again, this role would provide a degree of sponsorship by IDENTITY-6 and would enable Di Gerveno to at least meet significant government officials. While his operational objectives do not involve the GOV as a target, he could provide assessment and other operational data useful against this target.5. IDENTITY-4 produces a line of concrete block manufacturing machinery and accessories. There little doubt that as capital equipment, these can be imported into Venezuela--but the number of prospective buyers is limited. Such a line would not of itself support Di Gerveno's cover, but would be a satisfactory supplement there to which would be useful in explaining the fact that he will not devote his full time to any one activity--and to account for at least that portion of his income which could not be justified on the basis of his work on behalf of IDENTITY-2 and -3.6. IDENTITY-5 produces wrought iron for the utility industry. IDENTITY-1 is considering accepting representation for IDENTITY-5 on a hemisphere wide basis. If this line is accented, and Di Gerveno represents it locally, it will also help to enhance his status and to account for what would normally be an unusual work pattern.7. We do not wish at this point to get into a detailed discussion of financial arrangements. If, as we hope, Di Gerveno does make some sales, commissions will be payable to him. If under existing regulations he could keep at least a proportion of these, we would favor it as an incentive to work at his cover. If not, we have confidence that he is a weil enough disciplined professional, to work at it in any event.8. We would expect that the operational duties we have planned for Di Gerveno will take about 20 hours a week. This would involve meetings with the inside case officer; meetings with the agents; preparation of contact reports, drafts of cables, intei reports and dispatches, plus some time to think about his operations.9. We would expect Di Gerveno to spend the balance of his work week actually performing cover duties. Fis pattern cannot be neatly defined as four hours for cover and four hours daily for operations. llis daily pattern will vary widely and he must retain flexibility in order to be available when needed for operational duties. Nevertheless, to reiterate, he will have time for cover work and will be expected to do it.10. Under these circumstances, we desire that he he thoroughly trained in his cover duties and that he have a thorough knowledge of the products he is to sell. If it takes 6 months to train --we expect the 6 months to be used. As part of the training, and to eren the deer for his PCS arrival, when he has completed cover training with IDENTITY-1 through 4 (or 5), he and Hunkeler should visit Caracas together. Di Gerveno can be introducted by liunkeler to his comrercial contacts, they can seek office space, and, generally, lay the groundworl. for Di Gerveno's PCS arrival shortly after the exploratory trip.11. Please keep us advised on action taken, and precress on this proposal.12. Just before the release of this dispatch we have learned of Subject's death. This is a cause for real regret--but we would like to ask Headquarters to retain this cover proposal and to seek a possible substitute for Di Gerveno who will have not only good knowledge of the Spanish language, but sufficient commercial background to fit into the proposed cover.Stefan. Labano