PxeTAOT A Se ety oy Siar airtel to Miami and Phoenix, 3/5/68, :. a OPTIONAL FORM NO. 10 MAY 1962 Er TION 5010-106-03 co Mv wes, GSA GEN.'F. 1G. NO. 27 - . © @UNETED STATES_..O VERNMENT “Memorandum 3/29/68 2/2 Re Miami airtel to the Bureau, 1/68, and Bureau On March 26, 1968 CESAR DIOSDADO, U. S. Customs, San Luis, Arizona, furnished the following information concerning .BALTASAR ARROYO¥)(u .  *:DPIOSDADO denied that ARROYO was a long-time source of his, but stated that he has known about ARROYO since 1957; that in the normal course of his business to detect illegal | smuggling of arms to Cuba he picked out ARROYO as a prime suspect and endeavored to make friends with him over a period of several years. (P/ul /AE— 1 $6 10) — ya OORX FILED BY Jy 7 /9% jae DIOSDADO stated that one MARIO MATO (now deceased) and BALTASAR ARROYO were meeting all the boats and planes between Cuba and the United States, It was DIOSDADO’s opinion that they were the link between Cuban and U. S. sources in the smuggling business from the U. S,. to Cuba (¥i(u) DIOSDADO stated that he does not believe that ARROYO can be trusted; that the opportunity for a working relationship with ARROYO did not present itself until the latter came to him in September, 1967 as he remembers; ARROYO stated that HORACIO VELIZ PEREZ had contacted him as an . agent for the Cuban Government. When asked why ARROYO came to him, DIOSDADO, in this matter instead of to the FBI, a a nn OO OS an cE nn eet ER | DIOSDADO stated that he doesn't know, except that ARROYO ny would have known that he, DIOSDADO, was an officer of the OR Government of the United States and had been checking on Cubgn*smugg ling activities for a number of years in th (ul /4)- Bureau Cady HM) — g ye 1O Xq°- Miami (RM) (AM) #7 Qu pe AREC 18 J05- g 3 An ten OM eet) 406 CLC/mcl1 te nla 6.6 | EX 1 — Dad Rte fod” = i" $09 (Vales } NB — BBAPR 101968 '00°-/72 10? (rng nls) _—_ / - oe - . . - — one THM . a a ce | HW 53074 DocId:32292108 Page 3
Pe’ / , PX 134-467 CLE/me1 7 a7 Key West area, rnendePhas suggested to DIOSDADO that ARROYO may have suspected hin yas. 3.fbeing connected with CIA, DIOSDADO became obviously coy about this thought and changed the subject immediately (UY DIOSDADO stated that when ARROYO first told him about his contacts with VELIZ PEREZ he felt that ARROYO was "playing both sides of the fence," trying to determine for himself whether the United States or Cuba_had. him under surveillance, DIOSDADO advised that he immediately brought ARROYO and VELIZ PEREZ to the attention of Special Agents of the FBI in view of the Cuban Intelligence aspect of the presence of VELIZ PEREZ and ARROYO in Key West. DIOSDADO premised this statement on the assertion that ARROYO was a prime suspect in the smuggling of arms to Cuba, and at the same time -ARROYO was endeavoring to stay in good graces with United States authorities Ki Concerning the background of the ARROYO and VELIZ PEREZ relationship, DIOSDADO stated that he knew very little; that according to ARROYO, VELIZ PEREZ, a printer by trade, came to the United States in about August, 1967 and immediately made contact with ARROYO under ‘the instructions of the Cuban Government, VELIZ PEREZ has some blood relationship with a young woman by the name of GLORIA HACES, or HASES, or ACES, who came to the United States in, :1965, and operates a beauty parlor in the Du Pont Plaza Hotel in Miami. Reportedly a contact of VELIZ PEREZ is a Mrs} HERRERA, the owner of a small corner grocery,at lst Street and the water front in Key West, Florida “acu | DIOSDADO was asked if he could furnish’ any identification of GILBERTO BLANCO and RAFAEL GONZALES DUANY. He answered in the negative and said they were not known to him, DIOSDADO was adamant in his assertion that all the information he had about ARROYO was furnished to Special Agents of the Miami Office of the FBI prior to his transfer from that area CA . er Mee ree NO .. + ‘ S ea ee Se t oN \ 15 1 ee anid Fs ta ee te 8 Ne ee - . : ae en Cn ey HW 53074 DoclId: 32297108 Page 4