SEVKE (eben petbet fay Pike | ™, o . Crean v Leer nve . . PROJE ACTION we, KDEACTOR Tere of action JA [rave ca , l ee wee PaOgECT , fReVESION —— 7 apeooven Western Hemisphere Division i AvENeME NT Te eeeue station no. 2 Mexico City . te ¢ EA, «f OR BHC os ~ OF BK . rv te 4 One __ Mexico rene, Case OFetces ; Toate es EMSrOs 26 A r 73). : ROOM KO. BUILO DAS Tet. PES ok aCe TeAMasarion 3E05 Has an 1973 4167. _ : CONCURRERCES OF DIVISIONS . ore TVPED wave (rd adapatuse § ; ares o artacey C/WH/ 1 John_ Cc. C. Murray _ C/WH/B&F || C/WH/SS Richare 3B. $. Wright _ C/WH/FI | Robert D. Wiecha res ae C/WH/P1ans | | a 2 (Type ip Organisationad Flement and \are Uolaw Gniy Raen Concurrence Obtained by Grogsrating Element. } APPROVAL ers ge a . PreeoD Aut THES, ACTION TOTAL FUNDS AUTH FUNDS AUTMOS ETAT IGN a (2 a en eee oe = aa aa + ~ 7 ’ - piively 7 136 June 72 bio nets ise ae wen  eetee tego mmernacincer ere flaegpandannenccitinereenigeciwennenn Prasat nin cn mcepesatnc tr ee —_--——. APPROVING AUTHORITY SIGNATURE ADDO - . rome BU fartiens SECRET, 3-69 43)
| ST MEMORANDUM FOR: Associate Deputy Director For Cperations SUBJECT : Project KDFACTOR - Ahendment and Ternination Request, ; 1.-The KDFACTOR Project (until 1970 enerypted as the LIEMPTY Project) was initially approved in 1958 to provide financial and materiel support for visual anc photographic Surveillance operations targetted against the Soviet Embassy in Mexico City. In June 19/2 the project supported five agents and two basehause surveillance sites. 2, The KDFACTOR Project was approved by the ADDO in the amount of $19,000 for F¥Y-72 and $20,000 for FY-75, Per DIRECTOR 235255, gated 39 June 1972, the ADDO approved Amendment No. 1 to the -KDFACTOR Project in the amount of $9,844 for FY-72 to previde for costs of agent terminations. -, 3. The decision to terminate all agents and facilities under the KDFACTOR Preject was based on a Security review of the project activities which indicated that the VWBLANKET principal knew the basic details of the KDFACTOR operations, including the target, the location of the surveillance sites, and probably the true names and former cryptenyms of the agents covered by the project. 4, The costs of terminating all the agents in the KDFACTOR .. Project-amounted to $15,573.00 which was considerably more : . than had been initially estinated when Amencxent No, 1 for FY-72 was requested and approved. The totai amount charged to the KDFACTOR Project in FY-72 was $36,090 which is $7,2 over the project's autherization of §28, 843 The overage was incurred in terminating agents and facilities associated with the KDFACTOR Project; the effective date ef all termi- nations was 30 June 1972. wee €: cehuvrcer ce nA, arp : wawieka
14-0000 e- ary sorb ‘$, ‘All agent terminations were accomplished in an anicable manner. No visible security risks were apparent “at the time of the terminations.although any one, or all of the terminationed agents may at some future date decide to divulge to an interested party the details of the KDFACTOR Project operations. KDFACTOR-2 and KDFACTOR-5 have worked in photo surveillance operations fer the Station since 1957 and, therefore, obviously have consider- able knowledge of targets, former safesites, personnel, and modus operandi of the Station, However, since the KDFACTOR Project was not concerned with incompatible operations or targets, we believe the risks of damage to Station relations with the Mexican Government in the event of exposure of the KDFACTOR Project operations by a terminated agent are within acceptable linits, 6. It is requested that the KDFACTOR Project be amended *- to provide the sua of $7,246 for FY-72 to cover the costs of terminating five agents and two basehouse surveillance sites covered by this project. ‘7. It is also requested that the termination of the KDFACTOR Project be approved effective 30 June 1972, Theodore G. Shackley Chief,WNestern Hemisphere Division
14-00000 rf b ; EDFACTOR ~ Mexico City, Mexico -- Photographic Surveillance Team Support =- FY 1972, Cost $19,000 and FY 1973, Coat $20,000 Fiscal Year Approved Obligated 1971 $23,635 $27,586 Changes: * } 1. The processing of photographs obtained through this project now is performed inside the Station. KDFACTOR-1, who formerly processed the take in an outside safehouse, was terminated amicably in early March 1971. Security and effi- ciency have been increased by this change. EKDFACTOR-1 was terminated in 1970, but the termination payments were made during FY 1971 causing an increase in that years obligations. 2. Howard T. BAGAUS handled the administration of this project to early April 1971 when project responsibility reverted from the Operations Support Section to the REDTOP Section, At chat time Timothy H. ARCHBOLD assumed the iaside administrative supervision, and agent meetings were turned over to. the outside case officer Bruce H, FERNALD. When ARCHBOLD departed PCS on 7 June 1971, Oliver J. MANKUNAS assumed respansibility for thie project, including agent meetings. Ace lis nts: 1, Thies project has provided continuous daily photo- , graphic and visual coverage of personnel and vehicles entering or leaving the Soviet Embassy. A total of 530 rolls of film were produced during the reporting period. U.S. citizens, visitors, and YY personnel are given spectal attention. Iden- tifications of license plates and automobile descriptions as — well as drivers and their companions are identified under this project. Additionally, attendance sheets are maintained to establish who is at the Embassy on any given day and hour. | | | | | | | | | | | | |
14-00000 Ate enema enentientersrrns manent =2e These photographs and reports have contributed operational support to thé Station's Soviet operations which ia not '. attainable elsevhere. Yor example, whenever the Soviets :. Change all their license numbers the Station is able to ', compile a new, complete roster within a matter of weeks. : de Genera $ $19, 000 is requested for FY 1972 and $20, 000 is requested for FY 1973. It is also requested - that. the Project bé amended for FY 1971 in the amount of. $4,260 to provide for the termination of KDFACTOR-1 and KDFACTOR-7. 2. Sougee of Funds: Project KDFACTOR is included in the Western Hemisphere Division's Operational Program in the amount of $23,735 for F¥ 1972 and $24,182 for FY 1973. 3. EProject Budget: FY 1970 PY 72 FY 73 FY 74 Estimated , Obligati Salaries RDFACTOR-2 ; $ $,280 $ 5,280 $5,808 $ 5,863 EDFACTOR-§ 1,728 1,728 1,901 1,901 KDFACTOR~-6 2,112 2,112 2,323 2,323 EDFACTOR<-8 - 763 - 768 ~ 845 8435 -EDPACTOR=9.. - = - 1,968. -3,968- 2,165 - ---2,165- EDFACTOR-1 4,400 =Qa Qe 2Q= EDPACTOR-7 2,500 ; _oQe= Qo aQe * Bonuses 1,374 1,088 1,037 1,087 20,130 $12,944 314,129 $14,129 Base houses Rents $ 6,022 $ 4,350 $4,240 $ 4,240 Utilicies 400 750 800 800 200 60 500 $00 Maintenance 3 . $ $,62 2 $ 5,600 $ 5,540 3 5,540