SECRET cng ad sehen Pilled fa} sic? Cuve Tomy . PROJECT ACTION °°” KDFACTOR TS iva S6Om Western Hemisphere Division rite. Station Mexico City NEW PROJECT aPpPeovat SeEsn Mexico euiLoina CORCURRENCES OF DIVISIONS ORGAMEZATEGRAL tye “ and ad nature aa ELEMENT €0 name ¢ @ 7 —— CANAL John ¢. Murray C/WH/B&F | | B C/WH/SS | Richard B. Wright” . C/WH/FI Robert D. Wiecha C/WH/Plans | ee a ee ey) ae a Alcrwiio | ames E. Flannery ‘oy ¥ OX CONCUAREN SOF OTHER COMPONENTS — (Type in Organitatronal Element afd Nage Helaw Oniy then Concurrence Obtained by Or dginaling Element, J I Stafit CL Staff. fs _C/CCS/PRG. “pl ALL Fei is ACTICUS ON THIS Peolzer APPROVAL APPROVING AUTNORETY SIGH (" ADDO dt Mido, FORM Bug tiirsess SECRET 3°68 3}
Lo . ~ SECRET. aa 1 ‘MEMORANDUN FOR: Associate Deputy Director \ For Operations ; SUBJECT : ‘Project KDFACTOR - Amendment , and Termination Request. — \ 1. The KDFACTOR Project (until 1970 encrypted - - as the LIEMPTY Project) was initially approved in , 2958 to provide financial and material support for visual and photographic surveillance operations targetted against the Soviet Embassy in Mexico City. In June 1972 the project supported five agents and two basehouse surveillance sites, 2. The KDFACTOR Project was approved by the Abpc in the amount of $19,000 for FY - 72 and $20,000 for FY - 73, Per DIRECTOR 285255, dated 30 June 1972, the ADDO approved Amendment ND. 1 to the KDFACTOR Project in the amount of $9,844 for FY - 72 to provide for costs of agent terminations. 3. The decision to terminate all agents and facilities under the KDFACTOR Project was based on a security review of the project activities i , which indicated that the VWBLANKET principal knew J the basic details of the KDFACTOR cperations, including the target, the location of the surveillance sites, and probably the true names and former cryptonyms of the agents covered by the project, a 4, The cost of terminating the agents under the KDFACTOR Project amounted to $15,573; the cost of : closing down, the two basehouses under the project : was $1,412. The total amount charged to the KDFACTOR Project in FY 72 was $36,090 which is $7,246 over the approved authorization of $28,844. The overage was incurred in terminating the agents and facilities associated with the KDFACTOR Project. Although Amendment No. 1 to the project was approved in the amount of $9,844 to cover the cost of terminating the agents in the \ yas eempoet CL BY. SECRET
ee My aha SECRET cae e ° Preject, the actual payments made by Mexico City station per the terms of cach Memorandum .of Oral Commitment (MOC) and in accordance with Mexican law and custom exceeded the estimate for termination costs made by Headquarters at the time the Amendment Was requested. Termination payments made to each agent aré as follows: KDFACTOR-2 (Recruited 1956) $8,160 KDFACTOR-5 (Recruited 1956) 2, 366 KDFACTOR-6 - (Recruited 1956) 2,830 KDFACTOR-8 (Recruited 1965) - 649 KDFACTOR-9 (Recruited 1966) 1,568 The long tenure of three of the terminated agents, the relatively high monthly salary of KDFACTOR-2 ($440) plus the computation of the termination payments in accordance with Mexican law and custom were the primary reasons that the final agent termination costs amounted to $15,573, S. All agent terminations were accomplished in an amicable manner. No visible security risks were apparent at the time of the terminations although any one, or all, of the terminated agents may at some future date decide to divulge to an interested party the details of the KDFACTOR Project operations, KDFACTOR-2, KDFACTOR-5, and KDFACTOR-6 have worked in photo surveillance operations for the Station since 1956 and, therefore, obviously have considerable knowledge of targets, former satesites, 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 ot exposure of the KDFACTOR Project operations by a terminated agent are within acceptable limits. 6. It is requested that the KDFACTOR Project be amended to provide the sum of $7,246 for FY - 72 to cover the costs of terminating five agents and two basehouse surveillance sites under this preject. .
- ~ SECRET i . ?. ft is also requested that the termination ce of the EDFACTOR Project be approved effective 30 June 1972, , mes E, Flannery ; : AC/WHD SECRET.