[104-10219-10153.pdf — page 75]
# DISPATCH SECRET/KAPOKCmd, W H Division MA-12065KAPOK-1543S-6-74/3Chief of Station, Mexico City 4 February 1959LILIPUTTY Progress Report - July thru Dec 1958Note: for Headquarters information and files only.## SYNOPSIS OF DEVELOPMENTS1. During the period covered by this report, a new Case Officer, Quinton N. OWSLER, assumed operational direction of several LIPSTICK assets (Oliver G. SCANTLING, Raymond H. GERENDE, LIMITED, LIGALLA, LIENTRAP and several support agents), the LIFERSEY surveillance team and the LILYRIC Base. This Section has continued to use SCANTLING, primarily, to follow up LIMESSA leads obtained from LIFLATE and the photographic site bases; however, no positive results have been realized from his prodigious efforts except the collection of a considerable quantity of operational information. GERENDE performed at his principal photo requisition activities for the photographic site bases, LIENTRAP, LIFERSEYUntil 11 December 1953 handled the LIFEAT/GMORNING/GLIZEAT/ LIBFAT/ where applicable. The LILIPUTTY surveillance team has been used sparingly for proven investigations and routine team surveillance; however, a principal agent, CLACKETT, is currently being trained to head operations to assume the direction, control, staffing and development of the LUERSEY team. The project, LILIPUTTY, containing all the teams discussed in this report was presented to Headquarters on 3 October 1958 with requested project year approval. 1 December 1953 through 30 November 1959. An operational security outline of Raymond H. GERENDE's active base was forwarded to Headquarters as an attachment to HMMA-11363, 22 October 1958.## ACCOUNT OF DEVELOPMENTS - OLIVER C. SCANTLING SEGMENT2. Agent Information - Oliver G. SCANTLING has continued to perform his assigned team in a crisis situation; moreover, SCANTLING's patience, constructive education, ideology and native ability for the pursuit of clandestine activities is make him one of the most valuable support assets available to the Mexico City Station. The fact is that SCANTLING has full time overt occupation as Chief Engineer and Production Manager for a local manufacturing company aside to his alleged potential as a KUBARK agent. On two occasions during the past month SCANTLING has indicated to his Case Officer that he would like to resign from his overt position and devote full time to his KUBARK operational activities; however, the Case Officer has discouraged him from doing this on the basis that he has more long-range potential when his overt occupation is legitimate. Of course, SCANTLING would be more reliable if he could work full time or be better staffed, but not sufficiently so to warrant his resignation from his overt job (at a tolerably adequate but not incredibly adequate salary), in excess of $800. The only obligation the Station has undertaken is that SCANTLING has evidenced to his present Case Officer a substantial delay in preparing written reports of investigations and other matters requiring reports for the file use; however, this task arises gradually and it is expected that SCANTLING's reports will continue to be factual, comprehensive and some will be promptly submitted.3. Security Developments - SCANTLING is consistently under a considerable amount of duress and pressure when following up LIMESSA leads obtained from LIFLATE and the photographic site bases. Since time is always of the essence when a potential compromise is involved, SCANTLING frequently is directed to make approaches to individuals performing services for the LIRIL/RICK targets after routine, and sometimes costly, careful investigation; therefore, the possibility always exists of his compromise to an undesirable security incident. This arises strictly.