14-00000 ‘DISPATCH | | CLASSIFICATION SECRET} o- Chief, WH Division WFO. Chief of Station, Mexico City "‘JBSECT LIEMPTY Project Renewal STION REQUIRED REFERENCES Action: Renewal of Project Attached for Headquarters’ action is Station's review of Project a ‘LIEMPTY for purposes of renewing the project for the period 1 December’ — 1962 through 30 November 1963, ‘The attached review should also fulfill the requirement of a progress report for the period since the last project Hereafter, progress reports for this project will be submitted renewal, quarterly. Attachment: As stated above, Even pages - herewith Odd pages - Under Separate Cover Distribution: $8 WHD w/5 atts 2~- Files CLASSIFICATION SECRET ‘e , \\ Ava ONK Gee RECORDS CFFICER STA PROCESSING ACTION ea | we ee ONLY QUALIFIED HEADQUARTERS DESK NE JUOGE INDEXING PUSHED | VC — ane | 18 Oct. 1962 DATE TYPED. ‘ ’ . a : : a :
14-00000 Review of Project LIEMPTY (For the purpose of Project Renewal) CURRENT OBJECTIVES AND PRODUCTION | A. Oliver G, SCANT LING Segment (discussed in relation to Project object ives): 1... "To collect operational information pertaining to LIMERICK _ : pérsonnel_ and physical facilities." SCANTLING has continued (see pre- _ vious Project Reviews forwarded as attachments to HMMA-~-17999, 31 . October 1961, HMMA-14093, 13 November 1959, and HMMA-15979, 18 Nevember 1960) to provide worthwhile information pertaining to this ob- .jective, During the past year SCANTLING has continued to be used ex- tensively to follow up leads produced by LIFEAT and LIENVOY, An ex- cellent example of this blending of various Station support assets was the ~ _investigation and casing performed by SCANTLING after leads from both. LIENVOY and LIFEAT indicated the possibility of launching a successful technical operation against the residence of a high ranking LIMERICK. _ intelligence officer assigned to Mexico under diplomatic cover. /ith the aid of the thorough casing report and neighborhood investigation completed by SCANTLING, Station KURIOT personnel, supported by other Station __ Support assets, were successful in installing a technical device in the © . target. , mek OD RH ra ei SCANTLING continues to be the Station's primary means of keeping current records on the residences of the many Soviet personnel in Mexico ‘City, This is primarily accomplished through SCANTLING's follow up of all LIENVOY leads which indicate interest by Soviets in specific quarters. (Bee | previous project renewal requests for additional details. ) 2. “To collect opérational information pertaining to other targets of -opportunity, foreign official installations and personnel of intelligence in-. . terest operating in Mexico”. SCANTLING is very useful for r collecting, in- _ formation on otner station targets: a, On the basis of. a lead from the , ODACID installation | in Veracruz, the Station (with Headquarters support) mounted an operat ion to unobrrusively sabotage a large unit of agricultural machinery (of U.S. origin) which was in transit.to Cuba, To mount this operation, a precise and detailed casing of the imple- ment was essential, This SCANTLING was able to accomplish in one trip to Veracruz with results that contributed subptarrpiatiy-te, - the operaiion. busi 2? Eccieiad trot cae | i
14-00000 ~ D- b. SCANTLING provided the Station a detailed investigation of Harotun ("Harry") KOPOLAN, emplo yee of American Communists Albert and Margaret MALTZ, which |. determined the residence of KOPOIAN as well as his family status and connections, c, In the Satellite area, SCANTLING completed a casing of an official Yugoslav installation in conjunction with a projected 7 Station technical operation, a 3. "To exploit operational leads through recruitments, -debr ietings, _ | ~ and surveillances."" SCANTLING has contributed to this objective: both | | directly a and indirectly as noted in the following examples: SO a. SCANTLING completed a detailed and secure interview ‘of: the fiancee of BESMOOTH to determine her connection with the a principals in the MCMAYFOWL case, particularly any connection with procurement of documents used in the flight behind the Iron _Curtain. This assignment was extremely sensitive (SCANTLING. was not told true reason for interview) and SCANTLING did an. admirable job while maintaining his cover for having the. interview.. b, SCANTLING was calied on for extensive initial spade work in the BEKNAVE/BECHICK operation, SCANTLING © gave his usual competent performance despite the fact that the role assigned him was unique to his experience. c, SCANTLING performed one man surveillance of a sensitive “Station Soviet double agent which contributed significagly to that. operation, 4 a, SCANTLING was used extens ively during the visit of 7 GPIDEAL as part of the Station's effort in providing maximum oe ' protection for the GPIDEAL, party. . . ; In additi ion, ‘SCANTLING. performed. numerous | pretext and one eighborhood investigations, some of which were highly: sensitive. SCANTLING aso doés most of the local inve stigations requested by | a ODACID and other ODYOKE components, -4, In addition to his contributions to the above objectives, SCANTLING is used for miscellaneous support requirements from the Station, For example, | SCANTLING nandied-LEEMBROIL-2 until the return of LIMOTOR - rid in ween 1962, SCANTLING is aiso used to spot and rent safe house for other Station operations, Crone’ 3 Peg tn deo
14-00000 5. As stated in the preceeding Requests for Project Renewal, although SCANTLING's LIEMPTY Project objectives can never be com- pletely fulfilled, it is the Station's opinion that SCANTLING has made important and valuable contributions to LIEMPTY Project objectives specifically and to other Station activities in general, SCANTLING's production, measured against monetary expenditures, case officer time and other intengible factors, unquestionably justifies his continuation as an integral part of Project LIEMPTY... ‘Station operations and activities. GERENDE's comprehensive area. ‘knowledge and personal operational capabiliri ies combine. to make hiny a B. Raymond H, GERENDE Segment (discussed in relation to project obj ject ives): 1. “To collect operational information pertaining to LIMERICK | personnel and physical facilities through use of photographic basé houses, ’ Three photographic bases, LIMITED, LILYRIC and LICALLA, contribute to this objective. To avoid repetition, the Station is omitting the usual - description of the functions of these three bases and how they contribute . to the above objective, This was described in detail in the 1960 Request for . Project Renewal. (HMMA - 15979) 2. “To collect operational information and identify operational leads pertaining to Station targets of opportunity." The LIENTRAP operation, handled by GERENDE, is still the major contributor to this objeciive. Among LIENTRAP's regular and extensive photographic assignments, was the photo staxeout of prominent Mexican Communists (some of whom have... never been photographed previously by KUBARK) and Communist Party --Headquarters. During this assignment, LIENTRAP was able to cover = — the recent move of PCM Headquarters (the first information Station had | _ of the move) and to continue photo surveillance at the new site, 3. “To provide operational support to Station operations, i.e., rent hotel rooms and apart ments, and conduct counter-surveillances, " GERENDE is used frequently to rent horel rooms and apartments for other xtremely valuable Sation asset for such support activities, “GERENDE ; also procures and services post office box letter drops for the many ‘Station operations requiring them, ecwernconel ”
14-00000 4,. The quality and quant ity of operational information produced by the photographic bases and other activities under GERENDE s control © and supervision is considered worthwhile and in some cases unique.. The | Station concludes, therefore,,. ‘that this segment of the LIEMPTY Project should be cont inued. C. Relationship to Related Mission Directive Objectives: As stated in previous project renewals, it can readily be noted that . Project LIEMPTY has provided stipport to many Station operations and in ~~ this manner has been a contributing factor to the furtherance of the Related . - Mission Directive, .The project has not produced any positive intelligence © nor has it been interided that it should do so, The project's sole purpose . is to provide a mechanism for the development of operational informati ion ‘in support of other Station operat ions, Il, CHANGES There have been no chan ges in the LIEMPTY Project during the past project year affecting either objectives or personnel. Til, -ERFECTIVENESS | There has been no change in Project LIEMPTY which would alter the validity of the remarks made in Section III of 1960 project renewal re- quest (HMMA 15979) IV. «PROBLEMS The security problem in connection with the LICALLA operation, _. which was described in 1960 renewal request, is still present but has | caused no known difficulty, At Headquarters suggestion in HMMW-9736, the: te : -LICALLA base was reactivated on 29 May 1961. The. base operator con- tinues to be alert for any unusual incidents which might indicate that the base has been compromised, ve “PUANS The Station considers that the project is operating at its optimum size and does not plan to expand ir during the coming year. Efforts will be continued to refine and better utilize the existing project organizational arxvangements, As in the past, the Station will continus its efforts to improve the compartme neation. and secur ity of the project, ~— / ee es metros”
14-00000 Vi, COSTS ' A, Past Project Year. - Station finance records indicate that Project - LIEMPTY expended approximately $26, 250 during Fiscal Year 1962 - 7 ae “(1 December 1961 -.30 June 1962) and has thus far during Fiscal Year FS ! - 1963 (through 30 September 1962) expended about $7,000.00. It is. . a anticipated that about $8, 000.00 will be expended during the last two | _ months (October and November 1962) of the project year. Thiswill — ...  tmakea total expenditure. during the project year of about $43, 250,,0r ~~ Dope ~ $6, 250. 00 under the budget estimate of $49, 500.00, . . B. Next Project Year - Of the total $49, 900. 00 budget, itemized below, approximately $30, 400.00 should be expended during the remainder of ~ - Fiscal Year 1963 and the balance, $19, 500.00 should be expended during | Fiscal Year 1964. Normal accounting procedures will be used for all ex- penditures. ' . . | | AGENT SALARIES $US Per Annum FY 1963 FY 1964 (includes Christmas bonus FS oo, | 1962) Raymond H, GERENDE $ 6,000.00 Oliver G, SCANTLING 9, 500, 00 Louise J. MACRINO | (at. $US 2.02 per hour) 500. 00 LIEMPTY-4 2, 400. 00 | LIEMPTY-5 7 (at $US 1.75 per hour) 1,000.00 — . OO LIEMPTY-6 3, 500. 00 oO Oo : LIEMPTY- -7 (no salary) “a= : _ LIEMPTY- 9 oo. «8, 200.00 - LIEMPTY-10 4, 200. 00 LIEMPTY-11 . 2, 900. 00 LIEMPTY- 19 — 1,000.00 LIEMPT Y-24 (no salary) . ---- ‘SUB TOTAL