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# CONTINUATION OF DISPATCHCLASSIFICATION**SECRET**DISPATCH SIMBOL AND NUMBER**HMMA-38700**photos) played an important role in our total coverage of AESEASICK during the recent operational activity undertaken against AESEASICK. In short, LIEMPTY remains a highly effective and highly useful support asset, whose product is obtained in order to be used operationally, not simply collected for the files.## GERENDE3. The GERENDE problem is unquestionably a serious one. We are forwarding under separate cover copies of several memoranda prepared by GERENDE. One outlines the history of his marital problems, another describes the current legal situation, and a third outlines proposals for a settlement. There is no hope of reconciliation. The Station's position with GERENDE from the start has been that he must agree to an amicable settlement with his wife in order to insure that she would not feel forced to take steps which would jeopardize the security of Station operations. For this reason, the Station insisted from the beginning that any financial settlement with his wife would have to take into account the fact that he was receiving a certain salary from RVROCK, and that he could not fairly keep this salary out of the settlement on the grounds that his wife could make no legal claim to that salary. GERENDE's wife was made aware of our position on this, and she was grateful, even though she realized that this arrangement was strictly informal. The Station felt that GERENDE could not be allowed to use his RVROCK salary as a weapon in the dispute with his wife, because if he did, she could hardly be expected to refrain from exposing his connections. Indeed, events have shown that GERENDE's wife is a vindictive woman, and if it had not been clear to her that she, as well as GERENDE, would lose money if he loses his job, she might have blown the whistle long ago. GERENDE, for his part, would have preferred to keep his RVROCK salary entirely out of the picture. Eventually, however, he agreed that the Station position was fair, and he said he would conform.4. The attached memoranda from GERENDE are, in the Station's opinion, basically fair accounts. In the beginning, the Station was inclined to give GERENDE's wife (LIEMPTY-19) the benefit of the doubt, largely because her description of GERENDE's character weaknesses came as no surprise (particularly his tendency to procrastinate, even when his marriage was at stake). Early in the conflict, LIEMPTY-19 contacted RIZZUTO and asked point blank what she could tell her lawyer about GERENDE's salary. She was told she could not mention the RVROCK portion under any circumstances, and that if she told anyone that GERENDE had any connection with LNPURE, the connection would be denied and GERENDE would be terminated. She appeared to accept this gracefully, even though it meant she would have to scale her support demands down to the level of GERENDE's overt income (GERENDE's monthly salary from RVROCK was over 7,000 pesos; he earned an additional 4 to 5,000 pesos teaching English, and he has since rented their house, for which he is receiving slightly less than 7,000 pesos monthly). Subsequently, LIEMPTY-19 was told that the Station would see to it that as long as GERENDE continued to receive an RVROCK salary, he would give her the same proportion of this salary that the courts determined should be paid from his overt income. This, of course, was strictly an informal arrangement, one which would stop the minute GERENDE stopped receiving a salary. Later, as LIEMPTY-19's position hardened and her vindictiveness began to rule her actions, LIEMPTY-19 was reminded by the Station that the longer it took for an amicable solution to be reached, the greater was the chance that GERENDE would lose his job. If she persisted in having him arrested (which she succeeded in doing twice), his job would be jeopardized. While she continued to repeat sweetly that she had no intention of causing his termination, and had never breathed a word to a soul about his RVROCK affiliation, her attitude was in fact jeopardizing his job and if he lost his job, she and the children, as well as GERENDE, would lose income. Her attitude isFORM8.64(40)53 a USE PREVIOUS EDITION.CLASSIFICATIONSECRETPAGE NO.X CONTINUED2