; 2384 ety }ett OO able ga aS Big fide (ae, iiss SIG eae pugs PROCESSING ACTICN CASUTIATION “DISPATCH [= 1 chief, Western Hemisphere Division 1p BIOENG A OUIRED 8g, OMY GUARD OME Chief, Soviet Bloc Division CAN ADGE OLENS oe Acting Chief of Station, — mxcRoTaa wai ~ 1972 (*_KDFACTOR Operational Report, 1 September 197) through 29 Feb ‘Februar ACTION REQUIRED - RECEREMCES ACTION REQUIRED: ' None; for your information and files. REFERENCES ¢ A. HMMA~-41,028, 17 September 1971 (Previous Report) ‘B. HMMW-18,773, 23 December 1971 OPERATIONS 1. The KDFACTOR Project continued throughout the past six months to support two visual and photographic surveillance points (KDLITERAL and KDABSINTHE) directed against the MHHARSH installation. ADMINISTRATION 2. Oliver J. MANKUNAS continued to have responsibility for inside administrative chores and agent handling throughout the period. Bruce H. FERNALD, who previously handled the assets, is the alternate case officer and would be available to take over agent meeting respon- sibilities in the absence of MANKUNAS. Processing of the photo product is accomplished inside the Station. Agent meetings have now been cut to a minimum, and the processing of the product and delivery to the consumer has been speeded up. PERSONNEL 3. The project includes five salaried assets. KDFACTOR-2 operates the KDLITERAL basehouse and has been employed in this capa- city since 1957. KDFACTOR-5 operates the KDABSINTHE basehouse with the assistance of his wife KDFACTOR-6 and his two sons, KDFACTOR-8 and -9. KDFACTOR-5 has also served BKTRUST in this capacity since 1957. PRODUCTION 4. KDLITERAL: During this reporting period, KDLITERAL, through KDFACTOR-2, continued to be the source of within-the-compound photo- graphic coverage of PCS and TDY MHHARSHers. He produced 55 rolls of CONTINUED... DISTRIBUTION: Orig & 1 ~ C/WHD l1- ASB FPLC fe. GS cay ROS REARING TO 4 ATCH SYMSOi AND HUMZER====~=~*~*~*~*~<“~*~*‘“‘“‘*SC TE i remem HMMA~41,734 10 March 1972 duty oa etre ts CLASSIFICATION ‘ee Fad SER Maes . ; a ; S.- SECRET 50-6-74/3 :
CLASSIFICATION ; DIGPATCH SYMBOL ANS MVMOER + SECRET | _HMMA=41,734 film and previded weekly written reports based on his daily visual observation of the target area. CONTINUATION OF DISPATCH — 5, KDASSINTHE: Crerated by KDFACTOR-5, KDABSINTHE produced 100 rolls of film and ccntinued to be the principal source for infor- mation on visitors to the MHHARSH installation, with special atten- tion given to visits of "WOCORK=-type" persons and political exiles. aeThis segment of KDFACTOR also continued to be the main source of ‘information on MHHARSH license plates and automobiles. 6. KDLITERAL and XDASSINTHE both continue to provide detailed “attendance sheets" on all MHUARSH personnel. Without this combined coverage, it would be difficult to identify personnel assigned to the MHHARSH. installation or to monitor their daily movements and activities. in addition, the two surveillance points provide periodic _ photo studies of the MEHARSH installation itself with emphasis on “@6verage of ary constructionchanges and any modification or additions wade to the communications antenna system. Both sites are alse available to service special support requests as required. During the period, KDLITERAL performed a number of special photo surveys and a three-week frequency sweep requested by WOACRE. SECURITY REVIEW 7. There were no known problems, of security relating to the project. In response to Reference B. request, we have reviewed all phases of the operation and believe that project security is sound. The project assets have all been with us for many years and have established themselves as respectable long-time residents of the area. All five assets, four in one family and one in another, are extremely security conscious and have all been SGSWIRLed. The assets derive a substantial portion of their livelihood from their BKTRUST ~~ ;- employment and would thus lose a great deal if security factors ever necessitated a termination of their work for us. As an additional safeguard, the KDLITERAL and KDABSINTHE operations are compartmented from each other, and there has never been any indication that either segment of KDFACTOR knows of the other's existence. 8. The only termination of a project asset in recent years was KDFACTOR-1L, who formerly processed the photo product from both surveillance points. KDFACTOR<-1 was terminated amicably in March 1971. We still maintain periodic contact with him; and his brother, KDADAGE~14, continues to be one of our more valued MHHARSH access agents. KDFACTOR-1 is a reputable physician with a wide circle of friends, and on a number-of recent occasions he has been very helpful when we have taxed his expertise in his field or requested background information on people in the medical profession. Although KDFACTOR-1 processed the photo product, he was not knowledgeable of the exact surveillance point locations. Delivery and pickup of the finished product was always acconplished by an outside case officer. 9. Contact is maintained with only two of the five assets. KDFACTOR-2 and -5, both of whom are responsible for the operation of their respective basehouses. Both KDFACTOR~2 and ~5 are met weekly to obtain the KDLITERAL and KDABSINTHE product for timely processing and analysis by the Station. Meetings with KDFACTOR-2 are car pick~ ups at periodically changed locations in the suburbs. Meetings with KDFACTOR-5 consist of car meetings early in the morning along his route of travel to his overt job. These meetings last only long enough to pick up the ercduct, provide new supplies, and pay salaries, rents, utility bills, etc. Emergency contact plans are on file at . the Station and have been forwarded to Headyuarters on both ROFACTOR~ 2 and -5. KDFACTOR-6, -S, and -9 are members of KDFACTOR-5*s imme- diate family and could be contacted through him using his emergency pian. 10. We have taken action recently to guard against the contin- gency that one of the present sites might be blown, and alternate CLASSIFICATION | PASE NG. ‘| a64 USE PREVIOUS EDITION. : i SECRET ' CONTINUED 140
DISPATCH SYMUOL ANU NUMHER { TCLASBIPICA TION CONTINUATION OF DISPATCH | SECRET . HMMA~41,734 — ce seen rete eeneese att means might be required to continue the KDFACTOR coverage. . In February 1972 an apartment became available in the same building complex which houses the KDABSINTHE installation. Through the cooperation of KDABBEY<-1, we were able quictly to rent the apart- ment and install elements of the KDCALVERT team as residents. This \ location affords as good, if not better, vantage point for continu- ing photo coverage in the event the present KDABSINTHE location , becomes untenable. We are also exploring alternate locations for KDLITERAL to solve the problem we face with this element of KDFACTOR coverage (sce below). | PROBLEMS “4. The only known problem connected with the project is a ‘product of mother nature which 18 threatening the effectiveness of KDLITERAL coverage. Approximately two years ago MHHARSH personnel planted eight small trees along the edge of the terrace leading to the garden. These trees have flourished and now have grown to the point where KDFACTOR-2, the KDLITERAL operator, estimates he only has a year more of effective operational capability. We are studying ways of solving this problem and will forward a separate dispatch to Headquarters on the topic in the near future. FINANCES 12. There have been no changes in anticipated project expenses shown below for FY 1972 and FY 1973. SALARIES . PY 1972 (USD) FY 1973 (USD) KDPACTOR~2 5,280 5,808 KDPACTOR~5 1,728 1,901 KDFACTOR-& 768 845 KDFACTOR-9 1,968 2,165 11,856 13,042 BASEHOUSE RENT MEXI-03, UNIT 15 400 . 400 MEXI-132 . 3,550 3,840 3,950 4,240 MISCELLANEOUS EXPENSES Basehouse utilities 750 800 Property maintenance 500 500 & replacement Christmas bonuses 988 1,087 2,238 2,387 TOTAL EXPENSES 18,044 *19 ,669 PLANS 13. No changes in the project are contemplated. EVALUATION the KDFACTOR Project to the Station REDTOP Program is indispensable. We believe the project represents a professional collection effort being run securely and successfully against a sensitive target with a minimal expenditure of funds and case officer time. 14. The support provided by CLASSIFICATION SECRET CONTINUED FORM ~ 3.64 $38 USE PREVIOUS EDITION. 1407 er