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14-00000 SECRET. “tn 1958. ‘aumark purctiaséa the parr , propenty, (235 aq.  wetrés: of. land and. ows) in México City for..§12,000 and then spent $3,500 for repairs iad renovations to ‘sccoomodate “RUBARE operational: requirements. te ‘ “Bécause or. my ides: location ‘directly acreés the: atreet ‘tron the - i ‘Bobassy, thi property . which:vae for sale vas purchased so. KUBARK could establish. control over this specific. piece of property at that time. , For .. “reasone of security, ‘Jegak title. ‘for LIMITED waevested in agent LIMOUSIRE who acted as. tha: cut-out vehicle. A-statewent of trust is on file at the : Btation in! ‘which LINOUSIRE’ acknowledges KUBARK's ‘true: ownership of the — property. ' LIMITED. has been used operationally with outstanding success “and Presumably without cospromise, and it ig WH’ s intention te continue using Tt recently developed that part of the LIMITED house crumbled, and all the house vas found tobe ina Gistler state of disrepair. Repairs and ‘Limited remodelling, ‘however - costly, did ‘not seem to be economically feasible, | and in addition eertata- other operational and security considerations ‘seeacd to dictate’ ‘the need. for @ new kind of structure--a higher building so our angle | of: ‘gurvéLlinace: could: be. improved, and the addition of a commercial interest on the ground: level ‘to provide a daily flow of people (euch a8 a. bank, retsil store, etc.) Brection of.a comercial bullding is within the goning restrictions of the district. - Phe cost for new onstruction of a suitable building has been . estimated upwards. of $55,000. Although. the property is located ina slovly | " deteriorating: district, nonetheless the proposition ie bankable. With land included (appraiced at: $14,500 to $25,000)" a local bank ie willing to lesen Sop of Bhe’ new ‘construction cost of $55,000 _ LDtOUsTNR vould -not venture into auch’ a construction progran on ‘his "OWE. ‘@ecount at this tice.” He voulg, : hovever, ‘follow through with it as sn accoumédetion ‘to KUBARK if the. terma were. cquivable.- ‘Accordingly, he has indicated he” will be: ‘willing to-put up 20% of the construction eust from his own funds, | ‘borrow the remaining 80%, and then offered to pay KUBARK 180,600 peses or $i4;448 (appraised value by bank) for the 215 sq aetres of “land. Nothing vould be paid for the old building, since little, 1f anything, — could be realized frow the gale of the old building and the cost of raging it would far exceed the: -eale of the salvage materiols. Lhasa 77 , ‘Since much of ‘LIMOUSINE cash funds would be tied up in financing. tia» new construction, he effered-to effect: payment to KUBARK at the rate of bh, 300 pesos or $344.00 per month over 6 33 year period with the first paywent ‘ @ommencing. 3 years after completion of codstruction or July 1965. LIMOUBINE » would execute a non-interest and unsecured. note for the land. He would ensure .) ACUBARE tenancy reteation rights to rental of third floor apartmant at the rate. " 29 $2,300 pesos per month with KUBARK reserving theright. to cancel any time. The ‘operthent vould ‘be built to: KUBARK' a reoui rementa.