14-00000 “Sh DISPATCH Chief, Western Hemisphere Division ooo hief, Soviet Bloc Division _ Chief of Station! wel . © xpractoR operational. Report, 1 March through 31 August 197% 0 ACHOQHM REGO mie Qdath ; . ‘ACTION REQUIRED: None; for your information and files, REFERENCE 2 HMMA-40,227, & March 1971 (Previous Ops Report) CASSPAne PROCESUNG ACTION ‘sme, SBCRET OPERATIONS: 1, The XDFACTOR Project continued throughout the past six months to support two viswal and photographic surveillance points (KDLITERAL and KDABSINTHE) directed against the MHHARSH installation. ADMIN ISTRATION 2. Howard T. BAGAUS handled the administration of the project until early April 1971 when project responsibility reverted from the Ops Support Section back to the REDTOP Section, At that time Timothy H. ARCHBSCLD assumed the inside administrative chores, and agent meotings were turned over to the outside case officer Bruce H, _FERNALD who had previously handled the assets. When ARCHBOLD de~- parted PCS en 7 June 1971, Oliver J, MANKUNAS assumed his responsi- bilities. MANKUNAS also took over agent meetings when FERNALD left on home leave on 25 June and will continue to handle the project assets in the future, 3. Processing of the photo product is now accomplished inside the Station by Phemia B, CHAUVEAU, KDFACTOR-1, who formerly did all the processing in an outside safehouse/darkroom, was terminated amicably in early March 1971, and at that time the responsibility was turned over to CHAUVEAU, The new arrangement has proven to be more than satisfactory, Agent meetings have now been cut to a minimum, and the processing of the product and delivery to the con~ Sumer has been speeded up considerably, PERSONNEL | 4, The project includes five salaried assets. KDFACTOR-2 | operates the KDLITERAL base house and has been employed in this ' capacity since 1957, KDFACTOR-S operates the KDABSINTHE base house j DISTRIBUTION: ; CONTINUED , « « Orig & 1 = C/YHD . CS COPY ‘ / L = C/SBD— i whe cope tte “CY X fect Gisknaaniie TO pad acl ae mae DATE 17 September 197 HMMA-41,028 CASSIHCATION SECRET
CONTINUATION OF SeAgeiteATON se ee A DISPATCH ' SECRET HMMA-41 028 with the assistance of his wife, KDFACTOR-6, and his two sons, XDFACTOR <8 and «9, KDFACTOR-5 has also served JKLANCE in. this . capacity since 1957. PRODUCTION | 5, KDLITERAL: During this reporting period, KDLITERAL, through KDFACTOR-2, continued to be the. source of within-the-compound photographic caverage of PCS and TDY MHHARSHers, He produced 76 rolls of film and provided weekly written reports based on his daily visual observation: of the target aroa,. . 6. KDABS INTHE: Operated by KDFACTOR-5, KDABSINTHE produced . 167 rolls of film and continued to be the principal source for infor= mation. on visitors to the MHHARSH installation, with special atton- tion given to visits of "WOCORK-type"” persons and political exiles. This segment of KDFACTOR also continued to be the main source of information on. MHNARSH license plates and automobiles, a De. KDLITERAL and KDABS INTHE both continue to provide detailed “attendance. sheets" on all: MHHARSH personnel, Without this combined coverage, it would be difficult to identify persennel assigned to the MHHARSH installation or to monitor their daily movements and activities, SECURITY &.. There were no known problems of security relating to the project. The termination of KDFACTOR=1 should pose no security problem: Contact was broken amicably, and it is highly probable that he would be more than willing to help out again if his services are needed, Of the remaining assets, all five have been SGSWIRLED in the past, They derive a substantial portion of their livelihood from their JKLANCE employment and would thus lose a great deal if security factors ever necessitated a termination of their work for us, As an additional safeguard, the KDLITERAL and KDABSINTHE opera= tions are compartmented from each other, and there has never been any indication that either segment of KDFACTOR knows of the other's existence. 9, Contact is maintained with only two of the five assets, KDFACTOR-2 and ~5, both of whom are responsible for the operation of their respective base houses, Both KDFACTOR-2 and -5 are met weekly to obtain the KDLITERAL and KDABSINTHE product for timely processing and analysis by the Station, Meetings with KDFACTOR-2 are car pickups at periodically changed locations in the suburbs, Meetings with KDFACTOR~5 consist of car meetings early in the morning along his route of travel to his overt pb. These meetings last only long enough to pick up the product, provide new supplies, and pay salaries, rents, utility bills, etc, Emergency Contact Plans are on file at the Station and have been forwarded to Head- quarters on both KDFACTOR-2 and -5, KDFACTOR-6, -8, and -9 are members of KDFACTOR-5's immediate family and could be contacted - through him using his emergency plan, PROBLEMS 10, There were no known problems connected with the project during the reporting period. FINANCES ll. The termination of KDFACTOR-1 and the subsequent elimina- tion of outside photo processing costs accounts for the drop in anticipated project expenses shown below for FY 1972 and FY 1973, FY 1972 (USD) FY 1973 (USD) SALAR IES
74-90000 VIBPATCH BYMBOL AND HUBBER CLASSIFICATION CONTINUATION OF DISPATCH SECRET HMMA-41,028 SALARIES (con't)  FY=1972 (USD) FY-1973 (USD) KDFACTOR-6 2,142 2,323 KDFACTOR-8 768 845 KDFACTOR-9 1,968 2,165 , \ 11,886 13,042 \ 4 BASE-HOUSE RENT MEXI-03, UNIT #15 .400 , 400 MEX 1-133 . 3, 550 3,840 : 3,950 4,240 H ‘ MISC, EXPENSES “A BASE-HOUSE UTILITIES 750 800 PROPERTY MAINTENANCE 500 500 _& REPLACEMENT CHRISTMAS BONUSES 988 1,087 2,238 2,387 i TOTAL EXPENSES 18,044 19 , 669% t PLANS 12. No changes in the p®oject are contemplated. EVALUATION 13, The support provided by the KDFACTOR Project to the Station REDTOP Program is indispensable. We believe the project represents & professional collection effort being run securely and successfully against a sensitive target with a minimal expenditure of funds and case officer time. WHISTISGtS anticipated salary raises and higher rent on based on projected cost of living increase over two year period, Oliver J, MANKUNAS Bo-@-4 I CLASSIFICATION USE PREVIOUS EDITION.
74-90000 : : von ae JMAPHIO BE Ivory NB IsnaKe Roepe “Teuy SUAS eg CAN AUS UE thong Left, “ Mes bei t Bena Wephe, ij eeheeeee te ee AE AVL. IARC iP RGF y thins a ee is eee teen vee, /KPVAUL Los +FY 71 Safehouse Mxpenses . Se Fone aan SOT Sa ecece tren tl mpi stn eee 8 ata. Reference: INML*11016, dated to July 17] I i . 1. Headuucrtors hag analveed the XYEACTOR and KDVAULT rreject i Charrcas ta GRo-Sbjeet Claes 2353, 25 requested dn reference, These | J2CES hive veces ved credit for the rent retonds | APs mentioned in Piracraph § of re i v 3 recorded on the ference, 2, Attached, for the Stationts inlores ation, LOG axnentes charged to these protects BOGS omit tue total Expense rooortad oy the 39 June 197} Asn, The Oe ation Vill note that 21U oxrouses hire fUrred in the OPOTaT Eon id hod enaned Of the sufel AOUSES ero included under this Siro. Oojeort ds a bre akdoun of tistor SOO, C, 2383.0 Thas aes ; 3. Tie Statlon'ts nethed of Aandling the NEXT-03 rene account- Ding ds Coapletaly $atisfuctory fo Headquarters, ¥ i iA ‘ve? i ge ba Ne cen ; Patrick W. NAYSTON : vttacinents : ° As Stated Above meen ncaa car arte. 210 UAPAICH SYAHOL AND KUMAR a ~~ in. Pais . ee ae ef ee EE wo a Po te ec CASI ae Reewirgcireyry CHALE RUPEE peat - 24 A Aurust 1971) 775 ‘AL UY STRILUTION: wH/DRE biTZREG sid $ Reems te se,