[104-10187-10009.pdf — page 46]
# CONTINUATION OF DISPATCHCLASSIFICATION SECRET DISPATCH SYMBOL AND NUMBER HMMA-38700MHHARSHers undoubtedly assume we have a LILYRIC-like facility, and act accordingly, are another vital element of the REDTOP program.## LIEMPTY-49. LIEMPTY-4 has continued to develop and to print all of the LICALLA and LILYRIC photographs. He has been met regularly by Bruce H. FERNALD (taking over for GERENDE) since 26 November 1969. The first few meetings at that time (late November and early December) were arranged by FERNALD by telephono to LIEMPTY-4 and primarily concerned LIEMPTY-4's reports on GERENDE's family problems and related security arrangements. Since mid-December, LIEMPTY-4 resumed a regular schedule (usually weekly) of meetings at pre-arranged sites and times. LIEMPTY-4 has been given a special extension in the Station to which he may call as "Dr. Carlos" to leave a message for "Victor" (FERNALD). FERNALD can change meeting plans by directly calling LIEMPTY-4. The only personal problem directly involving LIEMPTY-4 was surgery on his knee which required his wearing a full cast on his leg for over six weeks. During this period when LIEMPTY-4 has been unable to drive, FERNALD has been meeting LIEMPTY-4, for the exchange of LICALLA/LILYRIC films and prints, at LIEMPTY-4's office, under a suitable pretext and with appropriate security precautions. LIEMPTY-4's services are invaluable since the Station could not, on a continuing basis, process the LIEMPTY material in its own photo lab.## SECURITY10. Other than the security problems inherent in GERENDE'S personal problems, there have been no security problems during the reporting period.## FUTURE PLANS11. As for GERENDE, the Station has reached the conclusion that he must be terminated. This is not an easy decision to make, nor will it be easy to confront GERENDE with this decision. He has, after all, devoted 15 years of his life to RVROCK. However, as noted above, in spite of his talents the Station has been able to get along without his services. Furthermore, the constant security risk posed by his wife is, frankly, an unacceptable risk. To try to molify her by promising her a portion of his salary is probably unworkable in realistic terms, particularly since her attitude has progressively hardened. The Station, therefore, intends to terminate GERENDE prior to the end of FY 1970. GERENDE'S contract calls for a termination bonus of one month's salary per full year. This would come to $8,750 (USD). For various reasons, including the need to preserve the security of the operation by ensuring that the termination is amicable, it will probably be necessary, as stated in paragraph 6, to give GERENDE about $10,000 (USD). Furthermore, it will be necessary to inform LIEMPTY-19 of the termination, and, to keep her from revealing what she knows, she will undoubtedly have to be given some money herself. The Station does not believe that it would be equitable or sound from a security point of view to use the money which GERENDE himself has earned for this purpose. Therefore, while the figure will remain negotiable, the Station believes that the sum of $2,500 (USD) would be a reasonable amount. Total obligations for FY 1970 in the LIEMPTY Project are currently estimated at slightly less than $33,000 (USD). The Project has been approved in the amount of $38,970 (USD) leaving unobligated approximately $6,000 (USD). It is therefore requested that the LIEMPTY Project be amended for FY 1970 to provide an additional $8,000 (USD) to be used in the GERENDE termination. Funds will be available at the Station.