E, Problems: ? There were no mijor problems during the past year. One security problea involved the claimed spotting of some of the photogophic equipment from the ‘street by David M, WILSTED (P), A thorough check of the basehouse by LIONION@1 andthe Case Officer failed to reveal any such equipszent a9 being visible frou the street, However, sdditional security measures were taken by darkening the background in.che .room:béhind: the equipment through hanging of heavier drapes on the. window, drapes.onthe wall, and putting up @ portable screen behind the equipment;.. This also"serves as a security check against the prying eyes ‘of the household servant’ as. LIONION-1 can now open the door fully to the reom when the servant pages him and she cannot see the equipment. The other problen . ,is the obtaining of inmigrade-statusa for LIONION"2. This involves the depositing ‘of funds to a bank account and is discussed under paragraph I, ; F, Liaison: There is no liaison involved in the project, G, Interagency Coordination: Not applicable, HK, Plans: it is planned to have LIONION@1 keep special logs on the activities of selected targets in LIRING as he has done over the past year, With the case _ officer handling LIONION-1 directly on a weekly basis, it is planned to continue “picking his brains for additional details on the LIRING target, Hope fully LIONION“1 and 2 will be utilized for assistance in covering the proposed take from the LISAMPAN operation, I, Costs: For Calendar Year 1966: 1. In the period 1 January through 30 June 1966 ,[- "was expended, The projected expenditure for July 1966 through 31 December 1966 is This total project year expenditure is approximately unde approved by Headquarters, However, this amount is probably due to having drawn film and other supplies frou overall Station support without their having been charged off against the Project . 2. For the period 1 January 1967 through 31 Decembér 1967 . 2. ; / SEG a] Pt T/KAPOK
™, ee * fren ae Mitel The total for FY 1967 is; | ‘Approval of this amount is requested. Note that the salary figures include the salary raise for LIONION“1 and the usual one-month pay Christmas bonue for LIONION@1 and 2, An additional ; provision. has been made for miscellaneous operational expenditures aa there " pfaay bea recurrence of ‘same as in the past project year for which no provision yas made, Provision is being made for charging of funds for supplies to the ‘LIONION Project which was not done last yesc Lo ocder that more accurate bookkeeping may be followed, In addition, the Station has had to make a loan to LIONION~2 for gaining status _ “to qualify for inmigrado: status im Mexico, This loan is held in a savings ‘account in a Mexican bank to prove to the Mexican authorities that .LIONION@2 can support herself, Funds are withdrawn from this account moathly, sometimes with interest, and deposited to a checking account where LIONION@1 withdraws the funds and they are applied to the revolving account for financing the ‘The initial balance-deposited to the acco:nt in February 1966 was Withdrawals ‘have been made at the rate of per month and -a8 of 30 October 1966, the nt had been reduced by leaving a. balance in the account of which should carry the account through November" 1967. A separate dispatch follows with the Memorandum of Trust and . fhecessary details on the account. Approval is requested for continuance of this account in order that LIONION-2 may obtain her inmigrado status, J, Other; LIONION@2 continues to perform in an excellent manner in support of LIONION-1. 3. SECRET/KAPOX
14-00000 e one lesy ; SECRET/KAPOK PROJECT RENEWAL REQUEST CRYPTONYM __LZONION FIELD CASE OFFICER A bute wath ower. an Lewrence F, BARKER STATION fexico Cit CHIEF OF STATION Willard C, CURTIS The attached Project is presentedfor renewal, cS COPY “EO FED Pasa | ™ serrate So-e- TZEVE LSD oF err La fohiaa pp AVITSY LS D6 OF DTT Ay é Ali wi a DIPS
F4-00000, essential by the Station.- - SECRET/XAPOK , A. Current Objectives. The ortginat object ives. of the project have not. changed but have been added to inthe last year. The project is functioning well -aa.a technical (primarily photographic) ‘surveillance operation against the PBRUMEN Embassy in Mexico Citys. It te designed tu: - 1. Furnish photographic coverage dur lag daylight hours of the two entrances of the target installation, 2. Dispatch physical survelllance.teane against persons assoctated with the target. : 3. Keep in readiness a Yatening post (Le) for the monitoring and recording of technical penetrations of the target. 4 Assist the Station in building up individual dossiers on offictala of the target installation. 5. ‘Monitor Station activities involving dLlrect contact with the target, and furnish an observation post cop) for othec Scation assets. Objectives 4 and 5 are addittons to those objectives set forth in the original project outline, B. Changes. There have been no changea in personnel and none are contem= plated in the coming year. It is being proposed in separate correspondence that’ -suue Of the,work lord now on LIONTON@] be shifted to Headquarters, specifically the development of film. LIONION-1's pay was increased 40 dollars a month effective 15 March 1965. The operation has produced thousands of excellent red with Headquarters and Station JMWAVE. Infor- target personnel and visitors to the target {natallation has been incorporated into xany Station files (primarily personality files -~ individual dossters). No precise statistics are available on thia produc- tion. It has been very heavy. Station JMWAVE shouid perhaps be called upon for an independent evaluation of LIONION production it has recived . mor Intelligence Production. photogrsphs, many of which are .aha mation on the comings and goings of The project is considered both highly successful and In addition te excellent photographic coverage provided - . the Station. has fcund in LIONION-L a first class asset for The LIONION besehouse was essential to mounting and asswent) operation, C/O Wallace B. », observing the movement pattern of sed by the Station when LIRHYME D. Effectiveness. by the LIONION agents, other operational duties. monitoring the LIRHYMS recruiement {and har ROWTON gat with LIONION-1: for several weexs LIRHYME*L, LIJNION-1 sanned one of three radioa u SECRET /KAPORK