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CONTINUATION OFDISPATCH SECRET ICIMA-33814Probably stems from the fact that, while its location has not changed, it is located within the LIMUST building, which is owned by BOFIRM (with LIMOUSINE acting as "front") and which is administered within the LIMESA project. As stated, however, all of this has been carefully documented for Headquarters. The LIMOUSINE purchase of the old LIMITED building generated consid- erable correspondence (see particularly MEXI 2159 and DIR 77745 of January 1965). IMMA-28322 and HMMA-30403 spelled out the reasons for switching LILYRIC and LIMITED, and the completion of the move was reported in HMMY-30687. Finally, sketches and plans of the LILYRIC and LIMITED houses in their new locations were forwarded with HMMA-31303, dated 7 February 1967. As far as LICALLA is concerned, its location and status was never open to question, and its location in the LIMEST complex is regularly mentioned in LIMESA progress renewal requests. The Station under- stands that a memo describing the locations of the various base houses was attached to the most recent LIMESA project renewal request when it was submitted to the staffs by WH/1.2. Personnel within the base houses is also well-documented (most of the LIEMPTY progress reports have identified each agent in each house), and the personnel have never been switched from house to house. Perhaps the best rundown of these personnel is Raymond H. GERENDE's security review, forwarded with HMMA-31164, 24 January 1967.3. Station Real Property reports are also, with one exception (MEXI-41), up-to-date and they reflect current condi- tions. MEXI-03 does, of course, include LICALLA. Nevertheless, the Station asked for $1800 for rent and utilities for the following reasons: first of all, utilities are an unrecoverable expense no matter who owns the apartment. Secondly, the rent, even though returned to the Station because MOFIRM owns the building, must physically be paid by the occupant of LICALLA. He, in turn, is reimbursed by the Station via GERENDE. LIMOUSINE eventually returns the money, at which tize it is credited to expense. This could, of course, be handled differently, but the Station has always found it convenient to finance in this manner, largely because finances with LIMOUSINE are handled on a semi- annual basis. The reimbursement, therefore, often comes many months after the payment.4. The Station neglected to cancel MZXI-41, which should be done as it refers to LILYRIC in its old location, before the move in 1966. LILYRIC is now MEXI-132, and is in the building owned by LIMOUSINE. Rent payments are, as originally intended, being used to help liquidate LIMOUSINE's debt, and, as instructed in HMMS-4814, 15 June 1966, the Station is crediting this money to miscellaneous receipts. There can be, therefore, no question of the need to include money for LILYRIC rent and utilities in the LIEMPTY project. LILYRIC rent is, and has been since the apartment was occupied in October 1966, 3,000 pesos per month, which amounts to $2,880 per year ($3,200 has been requested in order to include utilities). Headquarters is correct in stating that the agreed-upon figure for the rent in this new building was 2,300 pesos per month. Statior files indicate that the reason for the increase (and this apparently was not reported to Headquarters) was that the bank which holds the major part of LIMOUSINE'S loan had determined that 3,000 pesos was a fair price for the apartment. The Station had, of course, no choice but to go along with this.5. The Station has no record of MEXI-02, but it is likely that this is the old LIMITED apartment, which was indeed purchased by WOFIRM (via LIMOUSINE) in 1955. But since that building was later purchased and razed by LIMOUSINE, the old LIMITED apartment ceased to exist. The LIMITED base house was subsequently transferred to the building which had previously housed LILYRIC (but not to the same apartment), and LIMITED is