104-10052-10101 f ° . : CLASSIFICATION oo DISPATCH SYMBOL AND NO. - re HMMA - ee DISPATCH SECRET ARAPOR” | ; 3° . cute: f, WH Division | HEADQUARTERS FILE NO. 7 of | me _ . 50-6-74/1 | of FROM ; - | pare : . __: Chief of Station, Mexico Cit St October 1961 | - -LIEMPTY Project Renewal ance for name] | { . LX | NO INDEXING REQUIRED | ACTION "REQUIRED INDEXING CAN BE JUDGED Renewal of Projeer. BY QUALIFIED HQ. DESK ONLY 1 REFERENCEIS) | | f Attached are the requisite number of copies of the Request for Renewal. of Project LIEMPTY, 30 October 1961 "RECORDS S OFF se ae The foll Attachment: authoric As stated above, Even pages herewith, _ Odd pages under separate cover. Sigase: Distribution: C3 > WHD (with five copies of attachment}: Ir destruction, cite 2~- Files (with one copy of attachment) yoasen3 ana coordinate if appropriates - ieedife” . ao os 14 FORMA USE PREVIOUS EDITION. . CLASSIFICATION 10.57 $2 REPLACES FORMS (40) ~ 51-28, 51-28A AND 51-29 | WHICH ARE OBSOLETE. SECRET /iti@K
14-00000 . SECRET C - (When Filled rn) a : . PROJECT CRYPTONYM PROJECT ACTION LIEMPTY | WK RN TYPE OF ACTION x river cA NN . ~~. NEW PROJECT DIVISTON . APPROVAL \ \ tN . \\ FEELD STATION - . SSS \S RENEWAL BRANCH DESK . \ \ _ ‘EXTENS LON CASE OFFICER << _ - -— ; TERMINATION ROOM NO. BUILDING : EXTENSION — , AC 1013 Barton Hall 2555/3162 CONCURRENCES OF DIVISION ORC AN ENT TYPED NAME (And signature) parE _ [GoPy setae tat pten fexic o ANH | OV 196 a \ ac ‘TWH /B&F _ Robert D. Carter “Avert dy Sala 2 NSY 196 J» Ge Kin : =to ee kd) 2-5-Gl ; CONCURRENCES OF OTHER COMPONENTS . ; APPROVAL __ : PERIOD TOTAL AMOUNT FY AMOUNT WN SS NS FROM To | , 196 2| $ 29,500 < 1 December 1961 | .30 November 194% 19,500 1963| $ 20,000 \\\ APPROVING AUTHORITY a SIGNATURE, _ DATE oO eee ‘“ . att og . ‘ ( ’ ZOERPEONS. pnp /PG/FI/Proj VaaOLETE PREYEOUS' “SECRET
14-00000 . €aA¥Ozh - 30 Movenbsr 1952. This pr .Hexieo City Station operations, particularly those dir ' gealvist § Soviet personnel iid installations. ab/®: . funds pais estimate in¢luded. 339,500 for. salai MEMORANDUM BOR: Chief of Cperetione, DDd/2 O35 ‘ ta ey, wi 3 LES STP TY (Renewal) WE = = Mexiéo City t 4 if Ae pe ae Tne attached orojeect, is presented. for renewal. Lor tA 9 he. . sides’ Pox gays Heal and paotogragnic atirveillanes apa rations in support of 2. °. Authority - ate gis, 509 fiom the. WH Division bua 325,300 in fiscal year 1962, and $20, ¢ 003 in fiseal yaar “hoes subject to the ‘availability of aries OF thre $ and. eleven Same OB vehie agente; $3,500 for 20- erations} ext eneés, ; 5 on vehicle oars ee and matin- tenance @; flew safehous ehaks Sf information, oe: £ feoeiy, maintsnéenes, and papiaeante ueantts and 99,900 for meintehdéacs of “eares. paz  shotozres renenal gisé@usdes Le 2oabTeeE | ‘Ac cent OL ¢ iT Or other gbe rata ds 5 has "be: : Soviet idtotme bh Sa on ‘liga cf. jae aw f 8 Oo - blow ar é Edliées
14-00000 uy Appropriate Special Staff elements recommend renewal _ oF this, project. 7 $0 the Station in the form of rental of safe-quarters, counter- surveillance, gud procuring and servicing letter drops. The mye Division @eele tnat botn aspesets or the project are worthwhile | ‘| . to the Station's activities. It considers that. the project is.‘ ve _ now operating a  ontimum size and does not plan to expand. In | the coming period efforts will be made to ‘refine and better - aa use. the existing organizational arrangements. | Z | 5. tr recommend renewal of Project LIEMP TY as presented. “opal 7 Chief, DDP/PG Approved: ~ Date Lttachments Steff Coordination: Progscs Cue line. LIEMPTY ; ‘Bor FI statr PI Memorandum For Gi Staff =s/ For CCG -s outhard
14-00000 _ MEMORANDUM FOR: Ghief of Operations, DD/P THROUGH: DDP/PG SUBJECT : Project LIEMPTY Foreign Intelligence Staff recommends approval of the . renewal of Project LIEMTY, “ We LLOYD GEORGE Chief Foreign Intelligence Attachment Project - slp =) 2
14-00000 _ positive intelligence. ‘LIEMPTY Project Renewal Request. -.- a November 1961 . 1. It is requested that the LIEMPTY Project be renewed for the- ‘period 1 December 1962 through 30 November 1963 for a total of $h9,500; $29,500 for Fiscal Year 1962 and $20,000 for Fiscal Year 1963.0 These amounts can be broken down as follows: / FY 1962 -. -FY 1963 Salaries 2), ,000 15,500 © | / Transportation 1,100 900 vi Operational Expenses = «s- 33,900 St 3,100 Operational Equipment 500 500 Totals 29,500 20,000 2. It is not anticipated that any training will be required uring - the next project year. - 3. Emergency recontact instructions for Raymond H, GERENDE and Oliver G. SCANTLING are on file at Headquarters. h. ‘This project is primarily a support asset and does not provide S. WH Division strongly recommends renewal of this project which covers some of the most valuable investigative and support assets available -to Hexico City Station,
14-00000 REVIEW OF PROJECT LIEMPTY . | (For the Purpose of Project Renewal) ; COVER SHEET ‘CRYPTONYM LIEMPTY | FIELD CASE OFFICER, ae inton N. OUSLER STATION _ Mexico City The attached project action is presented for approval for the period . 1 December 1961 through 30 November 1962. | SECRET /Raao
14-00000 Review of Project LIEMPTY (For the Purpose of Project Renewal) Ty, CURRENT OBJECTIVES AND PRODUCTION A. Oliver G. SCANTLING Segment (discussed in relation to Project objectives): 1, "To collect operational information pertaining to LIMERICK | personnel and physical facilities," SCANTLING has continued (See the | last two Project Reviews forwarded as attachments to HMMA-14093, 13 November 1959, and HMMA-15979, 18 November 1960) to Provide worthwhile information pertaining to this objective. a. During the past year SCANTLING has continued to be . used to follow up leads produced by LIENVOY.. For example, operational information recently indicated that the LIMERICK | ‘target was using the services of a Mexico City firm to repair . ' safes, ‘Through discreet investigation SCANTLING was ableto  . 1 identify the firm, its location and the name of the owner inthe... event that we later wished to make an approach to him or to | exploit this information in another. manner. | . b, SCANTLING is still the Station’s primary source for _ keeping current records on the residences.of the many LIMERICK | personnel in Mexico City. This is accomplished in several ways; \ the most important being SCANTLING's follow up of all LIENVOY — fp - leads which indicate the LIMERICK people are interested in = =. °] | renting a given piece of property. (See previous project, renewal = | request for additional details). oS . | | 2, "To collect operational information pertaining | to. other. targets fe es of opportunity). foreign official installations and personnel of intelligence interest operating in Mexico."" SCANTLING is very useful for collecting _ Information on other Station targets: SECRET /: Se Oo |
14-00000 SECRET/ EGR 2. a, On the basis of a request to the Station from the - oO 7 . ODACID Chief, SCANTLING was sént to Pueblatobean) 2. 0 | eyewitness to the 4 June 1961.Catholic inspired anti-CAST RO- demonstrations, Not only did SCANTLING obtain the desired. | information, and samples of many of the leaflets used, but he prepared his report for the Station in time for the COS to give the ODACID Chief a briefing at 1000 hrs., 5 June 1961; BS SCANTLING does an excellent job on this type of assignment ~~~ “due principally to his ability to observe and report objectively. : | : | b. SCANTLING was instrumental in establishing that © - | Fernando LLANES Cavero and his wife were living ata local = = os] _ Mexico City address, . This case has been of considerable 7 ; 7 counterespionage interest to Headquarters, ¢, SCANTLING has continued his contributions to the Paul Frederick KIRSCHHOFF case by periodic interviews with the subject's neighbors and associates, : 3. "To exploit operational leads through x recruitments, debriefings, and surveillances,'' SCANTLING has contributed to this objective both . directly and indirectly as will be noted by the examples listed below: . - SCANTLING devoted a lot of time to the surveillance and attempted recruitment of| | a: Mexican national employed at the Cuban Embassy, SCANT LING © _ talked ame times and undoubtedly was primarily responsible for the later success } Of the recruitment . made by another Station agent. - ” | ‘b. Some additional time was devoted to the Cesar oo GONZALEZ Sanchez case in February 1961 when SCANTLING | determined that GONZALEZ was still in-Mexico City. See . the last renewal for addit ional deta ils on this case, . I oe Ty connection with the ‘above’ ‘objective Seanad _ has performed numerous pretext and neighborhood investigations - for the Station, SCANTLING also does most of the local investigations requested by ODACID and other ODYOKE — components, | | | | | _ SECRET/RSE@K So 7
14-00000 SECRET /Seaee -3- dd, _ SCANTLING spent six weeks during July and — August of this year giving tradecraft and surveillance training to LIPAILS 5 and 7 from Monterrey. Although this is not a direct contribution to the above objective, it is considered sufficiently related to mention here. - 4, In addition to his contributions to the above objectives, ' SCANTLING Is used for miscellaneous support requirements from the ~ Station, For example, SCANTLING is now handling LIEMBROIL-2 and will continue to do so until the return of LIMOTOR-14 in June 1962, Also, during the past project year, SCANTLING handled the LIRICE surveillance team until July 1961 when Simon D, CLACKETT (ps) returned to Mexico | City. SCANTLING is also used to spot and rent safe houses and apartments . for other Station operations, o>. AS stated in the preceeding Requests for Project Renewal, although SCANTLING's LIEMPTY Project objectives can never be completely - . fulfilled, it is the Station's opinion that SCANTLING has made important and — valuable contributions to LIEMPTY Project objectives specifically and to other Station activities in general, SCANTLING's production, measured . against monetary expenditures, case officer time and other intangible f factors, unquestionably justifies his continuation as an integral part of Project LIEMPTY. B. Raymond H, GERENDE segment (discussed in relation to project. object ives): described in the 1960 Request. for Project Renewal. “1, "To collect operational information pertaining to 0 LIMERICK personnel and physical facilities through use of photographic base houses, ' - Three photographic bases, LIMITED, LILYRIC and LICALLA, contribute | e Lo to this objective. To avoid repetition, the Station is om itting the.usual description of the functions of these three bases and how they contribute. to the above objective. There has been no change in the coverage 2 as. a 7 2, "To collect operational informati ion and identity operational 7 leads pertaining to Station targets of opportunity.'"" The LIENTRAP operation, handled by GERENDE, is still the major contributor to this SECRET/3325% meee gern eter a ements noe - : -
14-00000 objective. In addition to performing numerous photographic assignments | ‘LIERODE technical gear from the initial LIERODE stationary base. " Station operations requiring them, |G, Relationship to Related Mission Directive Objectives: SECRET /3EK in support of other Station operations, LIENTRAP devoted nearly four — months, on.a fulltime basis, to coverage of the LIERODE operation. . For several weeks the entire "take" from the LIERODE target was récorded ~~ from the LIENTRAP vehicle. Later, the LIENTRAP agents operated the . 3. "To provide operational support to Station operations, i.e. rent hotel rooms and apartments, and conduct counter- surveillances. ' GERENDE is used frequently to rent hotel rooms and apartments for-other - Station operations and activities. GERENDE's comprehensive area . knowledge and personal operational capabilities combine to make him an — extremely valuable Station asset for such support activities. GERENDE. also procures and services post office box letter drops for the many vo A, The quality and quantity of operational information ‘produced by the photographic bases and other activities under GERENDE's control and supervision is considered worthwhile, .The Station concludes, therefore, | | that this segment of the LIEMPTY Project should be continued, . As stated in 1 the previous project renewal, it can readily be noted that Project LIEMPTY has provided support to many Station operations and in this manner has been a contributing factor to the furthereance of the Related Mission Directive. The project has not produced any positive ~~ intelligence nor has it been intended that it should do so, The project's sole _ purpose is to provide a mechanism for the development of operational - information in support of other Station operations. - _ CHANGES. There have been, no changes t in the LIEMPTY Project during the. past project 7 . - year except that SCANTLING relinquished control of the LIRICE (formerly LIERSEY) . _ Surveillance team in July 1961 in accordance with previous plans. os SECRET/ Kase
14-00000 - SECRET ABs } There has been no change in n Project I LIEMPTY which would alter the validity of the remarks made in Section ITI of last year's project renewal request. IV. PROBLEMS - The security problem in connection with the LICALLA operation, which was described in last year's renewal request, is still present but has not caused any known difficulty. At Headquarters suggestion in HMMW-9736, the LICALLA base was reactivated on 29 May 1961. The base operator has been cautionedto be © | _ ever alert for any unusual incidents which might indicate that the base has been -- | . _compromised,. This is the only problem experienced BY. the LIEMPTY. Project during the past project year. V. . PLANS The Station considers that the project is now operating at its optimum size ..and does not plan-to expand it during the coming year, Rather, efforts willbe . | devoted to refining and better utilizing the existing project organizational arrangements. VI, COSTS A. Past Project Year - Station finance records indicate that Project LIEMPTY - . expended $21, 458.00 during Fiscal Year 1961 (1 December 1960 - 30 June 1961) and has thus far during Fiscal Year 1962 (through 30 Seprember 1961) expended about. $11,000.00. It is anticipated that about $8, 000.00 will be expended during the last. . two months (October.and November 1961) of the project year, . This will make a total expenditure during the project year of about $40, 900. 00, or some > $12, 500. 00 a under: the budget estimate of $93, 000. 00. . B, Ensuing Period - Of the total $49, 500. 00 budget, itemized below, a ..$29, 500,00. should be expended duzing the. remainder of Fiscal. Year. -1962 andthe: “2 balance:: -$20;000: 60" should bé expended during Fiscal Year 1963°> Nor mal accouiitiag "procedures will be used for all expenditures, . SECRETS oO a | |
14-00000 AGENT "Raymond HL GERENDE Oliver G, SCANTLING Louise J. MACRINO (@ $2.02 per hour) --LIEMPTY-4 -LIEMPTY-5 (@ $1.75 per hour) LIEMPTY-6 LIEMPTY -7 (No Salary) ~ . LIEMPTY-8. -LIEMPTY-9 _LIEMPTY-10 © -LIEMPTY-i1- ' LIEMPTY~-12 LIEMPTY-13° ‘LIEMPTY-14 LIEMPTY-19 _ LIEMPTY-~-24 (No Salary) ‘Christmas Bonuses 1961 OPERATIONAL EXPENSES “Maintenance of MV- 2279,. 2284 and 2286, Procurement of Safehouses, post office boxes and renting automobiles, ' Purchase of information, identification documents, and ‘bribes, ‘Repair, maintenance and purchase ‘of replacement photographic equipment, SUB-TOTAL ~ SUB- TOTAL U.S. $ PER ANNUM ~$ 5,520.00 _ 9,000.00 1,500.00 © 2, 200. 00 1, 000.00 3, 000, 00 -0- 2, 000.00 3, 000. 00 3, 900. 00 2, 800, 00 2, 000, 00 - 2,000.00 2, 000. 00 1,000.00 . _-0- 2,580.00 - 2, 000, 00 1,000, 00 — -)°. 500,00 SUB-TOTAL 1,000.00 SECRET/KESO 3,500.00. 1,000, 00 $ 39,500.00. 3 |.
14-00000 SECRET / 23%. _77- ‘REAL ESTATE Rent, utilities and maintenance | of following safehouses: _ *LIMITED $3,000.00 FLICALA 7 1, 500.00 ' LILYRIC - mo ' 1,000.00 SUB-TOTAL 9 | 5, 500,00 GRAND TOTAL $49,500.00 *UIMITED and LICALLA rents are returned to the Station by LIMOUSINE and : credited to Station miscellaneous receipts, ‘VIL. EMERGENCY CONDITIONS = = Bn 7 - Please refer to last year's request for project renewal and HMMA- 15982, 23 November 1960, and HMMA-15981, 23 November 1960, SPOR ers SECRET ARA8exK woos Y os | | |
14-00000 a en Se I HD aE AREY xe Aue | watt MEMORANDUM FOR: Chief of Operations, DD/P - SUBJECT : Project LIEMPTY (Renewal) WH - Mexico City 1. The attached project, originating in WH Division, is presented for renewal for the period 1 December 1960 through 30 November 1961. The project provides for physi- cal and photographic surveillance operations in support and exploitation of other Mexico City Station operations, particularly those targetted at Soviet personnel and in- stallations. - - 2. Authority is requested to obligate $53,000 from. | the DD/P-WH Division budget: $31,900 in fiscal year 1961, and $21,100 in fiscal year 1962, subject to the availabil- ity of funds. The amount includes $38,000 compensation for two principal agents, one clerical support agent on an. hourly basis, and eleven surveillance and support agents; $7,000 operational expenses (safehouse procurement, post office boxes, rented automobiles, purchase of information, vehicle maintenance, and operational travel); $2,500 re- placement, repair and maintenance of photographic equip- ment; and $5,500 basehouse rental, utilities, and mainte- nance, 3. The field's renewal request, supported by a cover- ing memorandum of the Division, sets forth accomplishments of the project in the past year in terms of objectives and estimates effectiveness. It is noted that one principal agent, Simon D. CLACKETT (p), resigned in October 1960, and - the four-man surveillance team previously handled by him. will be transferred to project LITEMPO, consequently being omitted from LIEMPTY in this renewal. Three basehouses con- tinue to be operated under the.project: (a) LIMITED, which © compiles daily logs on arrivals and departures from the ‘LIMERICK installation, together with attendance lists of LIMERICK employees, and handles the radio dispatch of the LIEMBRACE surveillance team on LIMERICK personnel and targets
14-00000 NF of opportunity. This basehouse also provides photographic coverage, concentrated on visitors. (b) LILYRIC which pro- vides clandestine photographs particularly of visitors to, as well as employees of, the LIMERICK installation, prepares — weekly reports on LIMERICK employees and their wives, and reports on license numbers of all cars visiting the instal- lation. (c) MLICALLA, which concentrates on photographic coverage of LIMERICK employees and their families, as well as providing observation on the apparent positions and jobs of the target employees, and as well as personnel changes. | Additional photographic coverage is provided by the mobile. LIENTRAP vehicle. Principal agent Raymond H. GERENDE (p) continues to coordinate basehouse activities; principal agent Oliver G. SCANTLING (p) continues to be an independent asset used to follow-up and exploit operational information | on target personnel and installations, to case various in- - stallations of interest, to acquire property, etc. SCANTLING has managed the surveillance team being transferred to LITEMPO in the interim following the resignation of CLACKETT. The Station notes that activities at the LICALLA basehouse were suspended in September 1960 as the result of the ar- rest of a knowledgeable TSD technician in another area and it is not known precisely when it will be possible to re- sume these operations. The Station believes that the GERENDE segment is now operating under optimum arrangements . and SCANTLING will soon be relieved from his interim respon- sibility for the surveillance team being transferred to LITEMPO and can concentrate more on his investigative and casing activities. It is not planned in the coming year to expand | project activities. 4, Appropriate Special Staff components concur in rec- ommending renewal. FI Staff notes the Division's assurance that the transfer of the unilateral surveillance team to LITEMPO will not affect its independent status, and remarks that the current project review presents a clearer picture of the usefulness of the several segments than the previous, oo one, oFany SLonk cee cme carpet ace rte neon -pnananenne cnt pacar SIE eno teen mene mentee pn gine tne (pt Cee NUREEA te ee ~ -
5. I recommend renewal of. Project LIEMPTY as pre- sented. oe a , Chief, DDP/PG 3 FEB 1961 _ Approved: oe - - Date” Attachment: Staff Coordination: Project Outline LIEMPTY | For FI Staff -s FI Memorandum For CI Staff -s/R. Brown — For CCG  -s/F. Youngblood i