oe CLASSIFICATION , DISPATCM SUIMBOL ANG NUMBEH CONTINUATION OF | : DISPATCH i secnet | aiuagee 3. After several largely abortive attempts to get GERENDE to follow up operational leads (and after moting, at the same time, a fine job he did.in recruiting LIRICE-13), the Station decided to present GERENDE with what amounted to an ultimatum; Following a Bix-week léave at the home of réldtives in the US, he was told that in recognition of his past services he was being given a salary increase ‘to $7, 000 U3 per annum (which may not seem like much until it is realized that’ GERENDE pays ro taxes on this, and has the use of a QP car, to boot). He was algo told that he would be given a number of_jeads to follow up (in some cases persons to whom he had natural Recess; in other cases leads which he would follow up under cover and in alias) ,-as welk'as agents to handle (in alias), It would be up to him-to take advantage of this opportunity to perforn up to his level of ‘aba lity; if he did so, Headquarters would be willing to work out an annuity program which would relieve his ‘worries about eventual retirement. If he did not put out, he could —“@xpéct to be terminated by the end of FY 1970, GERENDE expressed D his gratitude and his willingness’ to put his shoulder to the wheel, , and, in fact, he has dofie.so.. In October 1969 hé took over the handling “of LIANVIb-l-trow Oliver G. SCANTLING, and the Station hes started to give him leads to follow up. His performance has improved in every way--his punctuality has improved, his written reports are continually improving, and he has made the effort to devise approaches to the various leads and to start to follow up on then. 4. The Station was therefore highly encouraged, until 24 October, when GERENDE reported that his wife wanted a divorce, The problem is basically one of incompatibility of personalities, . exacerbated by the fact that GERENDE'’s operational activities resulted in his being home more often than a man who works a normal office day. GERENDE's wife had taken a long vacation alone earlier in the year, visiting her parents, and the leave taken by GERENDE, referred to above, followed his wife's return and did not include : -Rer,. Both times GERENDE had the four children, Thus the news of \ the divorce request did not come as a real surprise. The problem, ¥ however, is that both parties want custody of the children, and the ay dispute becomes daily more bitter and more violent. The station ? J has taken the position that security of GERENDE's operations must L By be preserved at all costs, hoping, of course, that the divorce can f the bitter fight results in the surfacing of GERENDE's RVROCK ea employment, LILYRIC and LICALLA are faced with at least ame threat “ of exposure, The MHHARSHers are quite aware that a LILYRIC-like facility exists; whether they suspect LICALLA is a moot question, LICALLA is in many ways more useful, and the MHHARSHers could put it out of business very easily by making their wall higher, Little c's foe avoided, At this writing, the outcome cannot be guessed, If could, or probably would, be done to prevent LILYRIC from functioning, NO &. Other than LIANVIL-1 and the LIEMPTY assets directly . x handled by GERENDE (LILYRIC and LICALLA personnel and LIEMPTY-4) > other Station assets whose security might be affected by GERENDE‘s s\ current problems include LIENTRAP, LIRICE-13, and the PCM OP, ¥ GERENDE is also aware of the fact that some sort of operation, presumably technical, is or has been conducted from the LIMESA SX complex; he is aware of the existance and knows scme of the members the LIEMBRACE team (LIEMBRACE~1, «2, and -4, among the currently act and he knows of the existance "of LIENVOY and LIFEAT, His. \ Wife..is LIFEAT-19 and has been a substitute transcriber as late as _ we ‘Yate 1968, and his mother was LIFEUD-19 (a former LIFEAT basehouse _ Keeper, ‘inactive _Bince June 1964). : GERENDE also knows SCANTLING, po, David M. WILSTED, and Raymond’ L. BARCENAS, as well as ‘curreat™ Station | _ officera Vincent P, RIZZUTO and Bruce H. FERNALD (the latter in | .  aliasy.” He has also met™ Andrew E, PELLEMENT, who used an alias. {a his 15 years, GERENDE has worked in almost every phase of the Station's ‘support activities, and even though in recent years he has been pretty much restricted to LIEMPTY, his knowledge of activities and assets which are still current is considerable, It is too early to judge the-outcome of GERENDE's problems, but the Station is making every effort to see that security of operations is not affected by whatever decision is reached. semen | CLASSIFICATION RAGE NOD FORM a.64 53a USE PREVIOUS EDITION. [ x i CONTINUED 2 en enna nt en terrane cama (40) | SECRET
1 DISPATCH SYMBOL ANO NUMBER -DISPATC : , rH | spens T | MMMAe38219 LICALLA 6. The LICALLA base bouse has c past, LIEMPTY-9 continues to be a co In addition to providing about 3,500 photos during the reporting j period, as weil as comments on events and relationships which are noted by him, he had provided special coverage as requested on various ‘targets of interest, such ag AETAKEOFF. During GERENDE's © absence oa leave, LIEMPTY-9 was handled by SCANTLING. ontinued to function as in the nscientious recorder of events. LILYRIC . a _ a. | 9, LIEMPTY-13, -14, -26, and -27 have continued to provide we full-time coverage of the MHHARSH Smbassy front entrance, providing _-daily legs of thé comings and goings of all officers, and about *:.9,000 photos. during the reporting period, The LILYRIC base house reported -on the visits of Americans ten different times, and provided ‘ epecial coverage in connection with AEBURBLE, SCLEASE~2, and one other LNERGO walk-in case, LILYRIC personnel were also handled by SCANTLING during GERENDE's absence. LIEMPTY=4 8, As in the past, LIEMPTY-4 has done the developing and printing of all LICALLA and LILYRIC photos, and most of the LIENTRAP preduction., LIEMPTY-4 was handled by FERNALD during GERENDE‘'s absence . . COMMENTS 9, LIEMPTY coverage of the MHHARSH installation continues to bea useful tool in the Station's operations against the MHHARSH target. One IA in the Station spends several hours per week processing the take, keeping mug book and files up to date, checking the infor- mation in the logs against other reports when required (to determine whether or not an agent or contact entered the MHHARSH installation as claimed; or whether an AERGRIP or AEKICK officer was out of the installation at a particular time, etc.) and analyzing the. LICALLA production for insight into personal relationships. Useful by-products include continual up-dating of MHHARSH license plates and observation of demonstrations outside of the Embassy and renovations within the grounds. | Furthermore, in GERENDE the Station has been attempting to develop on outside asset with considerable flexibility, who has been used to make recruitments and assessments as well as handle agents, GERENDE’s personal problems are placing bis own career in jeopardy and posea potential security hazard to LIEMPTY and other Station operations. This is a problem which will : be dealt with and resolved in the next reporting period and prior ah es to the next Project renewal request. [~~ oe anal [ewrns 1:12 33 rb for/John A, PROBERT Se-é-T4/3 nae _ ee et J CLASSIFICATION PAGE NO. FORM ; asa HA USE PREVIOUS EDITION. SECRET [| conrmuee 3 (452
setae ~ DISPATCH Chief, WH Division CUASSITCATION PROGLSSNG ACTION SECRET MARKEG FOR DIDELIG _ Chief, Sh Division Chief of Station, Mexico City, ° WRK 6 LIEMPTY Progress Report, 1 July through 31 December 1908 ACTHOM REQUIRED - REFLREMCES Reference: HWMA=35080, 22 July 1968 SUMMARY — . . 1. There have been no basic changes in the operation of the project during the reporting period, Raymond H. GERENDE continues as principal agent, handling the personnel of the two base houses, LILYRIC and LICALLA, and performing other additional tasks, On 27 December 1968, consistent with our etiort to get as much of the support activity as possible handled by outside officers, direct agent-handling responsibility tor GHREND: and the LIMAPYTY project was turned over to Bruce H, FERNALD. Vincent P, RIZ4UTO remains as alternate and as FERNALD'’s inside contact, GERENDIE 2. Until the introduction of FERNALD, there was no change in the meeting arrangements with GERENDs. Meetings were held on an average of three tines per week until October, when LIEMPTY-19 (GERENDE's wife) was relieved oi the responsibility of transcribing the Spanish-language portions of LIENVOY coverage of the BEDOX installation, Thereafter mectings averaged twice per week, the main business being the transfer ot LIEMPTY base house material and discussion of base house business, Distribution: — @- C/iH ~ C/SB Ace ~S6)X]wH DISPATCH SYMSOL AND MUMBER DATE CROSS REHRENCE FO. HMMA=-SG6272 22 January 1969 CLASSIFICATION HOS FILE RUMBER SEC RE T A 50—6=74/3