“ HAASE 188 IGHT SIN* Ut C PROCESS ATO . | ea sor ann “| .chier! aH Divisi ; ; XXN_ [se osioues eran coe te Chiei, SB Division . . . (an REL DERE Chief of Station BRRORA TT DV LAAPTY Project perational ‘Report, 26 March = 39 June 1970 achon Giqueib -Beneneas ~~ References: A, - MAntA~ 387004 25 March 1970 * Bo HAMW-17950 "42 June 1970 Soe . 1. With the termination of Raymond H. GsRENDL, effected ‘on 26 June 1970 ard described in H¥MA-59129, 29 June 1970, the | LIEMPTY Froseci now consists cf the operat ions of the LICALLA and ‘LILYRIC phéte base houses and the photo processing of LISMPTY<-4, oe Outside case officer Bruce H. FKRNALD handles all agents, normally on & once per week basis, and passes the take te his Station contact. Cperational funds are passed to FERNALD by his Station contact, aad FERNALD pays 211 agent Salarics, rents, and other expenses, The elimination of GRHHENDE has resulted in some loss of efficiency, since basc heuse personnel cannot regularly be met as frequent)y as in the past, This can mean a delay of up tu two weeks in receipt by the Station of photoes, However, LILYRIC and LICALLA personnel have standing requirements to report by telephone visits of Americans, and they are also alerted in advance whenever pessible to forthcoming TDYs of MHHARSH visitors, so that arrangements can be made for special meetings and speedy precessing of photos, Normally, all photos are developed ane printed by LIEMPTY-~4, When speed is of the essence, however, uegatives are seat into the Station for processing by the WOACRE technician, Thus, while GERENDs's loss is a serious one in certain respects (he was, on bee local scone, talented, knowledgeable, and experienced), LILMPTY roduction hes uot suftered greatly. : Attachment: , a Mahe Se Yer receipe by KIDIAN Ch RS fe ly 1a: payee ny a ny ore ae Di ibution: : ae bigay C/WH w/left side h/w and right side u/s/e pi pn! i - C/S3 w/left side h/w and right Side u/s/e , ; a COP Séitto SEIX fictt *; ROSS REFERENCE TO DSPAIN SYMBOL AND MUMSER : WUMNA=-39188 CASSIMANON S ECR 2 T
FORM ace 538 440 “y CLASSIFICATION © | OIBPATCH GYMBUL AND NUMBER i 2. As tar as the security problem is coacerned, the generous termination settlement avarded to GSKENDE has probably removed whatever small temptation there may have been on his part to be indisereet about his former assecittion, Although GERENDE his certain character weaknesses which emérged as a lack of dedication and a feeling that he could get by with as Littke work as possible, the Station believes that he is basically not.an irresponsible person, and that he realizes not only that he has an obligation to respect security, but that he also realives that he has been treated fairly and with great patience. He has olfered his services for the future, and he was told that we epprectated the offer and did fot want to lose complete touch with him, but for now he stould devote himself to getting a good job. 3. As for GERENDE's wife, LIEMPTY-19, she also appeared to be grateful for the termination bonus which she had been granted {and which she was told had not been carved out of what was due GERENDE). On the other hand, She has less reason to be loyal to JKLANCE, and her mental stability if somewhat opea to question, Therefore, she poses'a greater threat to LIEMPTY security than dues GERENDE. At the same time, she knows much less about Station operations anf personnel than does GERENDE. Furthermore, it is not likely that she would (a la Mrse LIROCKET-1) go directly to the MHHARSHers with her information. What she might do is reveal to her lawyer that GERENDE liad worked for LNPURE and therefore had incorne to which she might fect that shé ig entitled. Since GERENDE ls no longar employed and therefore no lenger has regular ‘income (except for monthly payments of the termination bonus, which she has agreed in writing not to claim), this threat has also been lessened, Theoretically, however, she could expose CONTINUATION OF = bisa | SECRAT , HMMA =39188 LIEMPTY and LIFEAT techniques (since she has been a LIFsAT transcriber), but she could not, as far as we knew, expose any currently enaployed agents, with the exception of LIEMbPTY-4, who is married to GuRENDE's Sister. (Nene of the above assessment vl the possible security threat posed by LILMPTY=-19 is changed by her 8 July visit to JKLANCE Headquarters.) - . 4, There have been no changes in the functioning or activitics of the LICALLA base house, In addition to the routine photos, tattendance reports,” and special concentration on the activities of various individuals (most recently AETURNKLY), LIEMPTY-9 instance, it was ber of spot requests. For responded to a num ' q ances entity the ww erage which was instrumental in helpir NeGRIP offi me ity to meet an LNNHEAD agent ARGRIP officer who came to Mexico & N (see MEXICO CITY 2820, 3O March 1970) and to establish that the TOYer spent most of his time in the company of other AEGRIP officers, Also, when the AEKICK inspectors finally arrived early in April, IMP T Y= E 3) Stablish that their principal “escort Soe yee eeeared to be v. 6LIEMPTY=9 was also alerted to {fficer" appeared to be “AFTURNKEY. i ; vateh for the arrival of the subject of DIRECTOR 042120, 12 June 1970 (and has net, as of this writing, seen any Sign of him). od Perhaps the most useful contribution during the reporting peri was the updating of a sketch of the back of the MNHARSH embassy, identifying the persons he most often sees at each window, Used in ron june ith the AEMIDRITF debriefing (and her knowledge of conjunc ton thi as accurate a view as we te inside), this 'velped us come up with : have ever had of the location of yv2r20us offices anu officers within the MHHARSH Embassy. the functions or 5 There; have also been no charges in weLivities of the LULYRIC base house personnel, Photos and logs of daily comings and goings were routinely furnished, the logs «unce : , heir value by indice: !ne that the subject of MEXICO agate ono June 1970, was probably lying when he said that he td had meetings with ASTURNKLY at certain times on certain dates, 450 -6- 74/3 { [x | CONTINUED 2 : cree RR CRETE TPOARR ARRAN TC TO CLASSIFICATION USE PREVIOUS EOITION. SECRE 7
CONTINUATION OF ; CLASSHCATION : “SISPATCH BYNES ANO NUMOER DISPATCH . tS GL RE TL HVA=59138 | The logs showed that ASTURNKEY might have made the first meeting, but would certainly have been late for it. For the alleged second meeting, however, the log showed that AETURNKEY was in the MNHARSH } Embassy for the entire period of the weeling (subject of MSXICO CITY 3389 latdr amended his story to say that AETURNKEY had not rade the second meeting). LILYRIC personne] were quick to spot the subject of MEXICO CITY 3542, 25 June 1970, making visits to the MHHARSH Embassy, and reported these visits by phone evun before the Station had learned, from LIENVOY, of this person’s telephone call, Several other visitors of apparent WOLADY nationality were also routinely reported to local LN¢RGU, along with a request for license plate resolution if a WOLADY license plate is spotted, Late in June, LILYRIC was alerted to report the possible visit of a person who had made a phone call to 201-087316, offering the latter some “interesting information,"”- LILYRIC spotted aad - photographed a person who may be idertical with the caller, and attempts are now under way to resolve this, 6, LIENPTY=4 continues to handle all photo developing and minting (except when certain prints. are needed quickly), and in - - spite. of his leg iwjuvy, from which he is now vecovered, he did net miss any deadlines. The fact that GeRteNDE has been terminated is not expected to affect his relationship with the Station, even though he is married to one of GERENDS's sisters, FERNALD has . eetablished good rapport with hin, aud he has stated that GcRENDE's preblems ure not -his and will have no effect on lis association, 7. The above recital-of LILYRIC and LICALLA sctivities would seem to indicate a heavy CI emphasis, Actually, this is not the case, While CI is an important by-product, net only for ourselvas but also in support of walk-in operations run by other ogencies, the day-in dayeout bread and butter photo and fixed surveillance information is of great importance to our positive operations, The data base which has been built un end maintained by LISMPTY facilities, along with the services of LIENVOY, LIFEAT, and LIEMBRACE, give the Station ano Ivvtessive aunenet annaratnue whieh is vital to our program, r 8, With respect to the approved project renewal torwarded with Reference B, we have the following ccmments: a. Through an oversight, we neglected to report in Neference A that LILYRIC base house rent was raisee as of . 1 January 1970 to an annual rate of $3,360.00 (USD). b, LICALLA base house rent was raised, effective 1 July 1970, to an annual rate of $1,373.00 (USD). (Reference B shows that this figure has already been requested tor FY 1971.) ce. as indicated in Reference A, salary increases for all remaining LIsspry personnel will probably be recommended in the near future, d. The GERENUS dark room rent (MEXI 137) is now being paid to LInspTy~4. Pending the compietion of GERENDE’S new house the lab work was being done temporarily in LISMPTY~4's office, With the suspension, «"¢ now the termination of : 3s , to make thin a vermanent CMeeNDE it became necessary a . Cee and the Station felt it only fair to pay LIEMPTY-4 arrangenent, : - + ea Use 1 3 this vee ($80.00 USD per month), wot only for the use of pis for increased water and electric bills space but also ’ : : (particularly the latter) resulting from his having to develop, print, and dry the photos. GERENDE was paid through December 1969, and in June 1970 LIEMPTY~4 was paid retroactively for the period 1 January to 30 June 1970, It is planned to continue the monthly payments, 5° this item shouleé be restored in the next project renewal request, ~~ “ELASSIFICATION FORM goinon, | . xx . . 8.84 53a USE PREVIOUS EOITIO SECRET XM conmauen | 3
ae { CLASH FIC ATION IEP ATCH OYMOOL AND NUMBER CONTINUATION OF ace | sce . | __ HMM 39188 DISPATCH e, Regarding vehicles, NV 2447 (nol MV 2523) was sold dn FY 1970. MV 28273 is the LIiNTRAy vehicle, and is still ‘mn use, It is, however, used in the LI-MBRACE Project and the maintensace expenses ought to be charged to LIBMBRACE, just as are the sataries of ULEM?TY-10 and LIEWTY-11, who operate the LIENTRAP vehicle.. * 9, The changes noted above do not invoJve large amounts of money, and are also to sume extent offsetting. Therefore, 4t is not likely that these changes will require additional funds for oa FY 1971 over the amount approved. — we, 10. As requested ‘n Reference B, tollowing are emergency commo plans as worked out by FERNALD: a, LIEMPTY-4: Spanish should be used when talking to his secretary; Spanish should also be used, preferably, when talking to LIEHPTY-4, In view of his profession and the uncertainty of his workiag schodule, the person making the ‘,° “contact should go "‘nannounced to his medical office at Carlos B. Zetina 73 between 170C and 1830. hours. [In the waiting room there is 4a aecretary and the caller should tell her that he was referred by "Sy, Victor de los Laboratorios del Norte" and wants to see the doctor, When admitted, the officer should tell LIENPTY-4 that he isa certain the doctor renembers Sr, Victor. LIaptTy-4 will answer aifirmatively. For positive identification, the officer will show the last salary receipt gigned by LIEWPTY<-4, LIEMPTY-4 needs no positive identification, vecause his diplomas with pictures are exposed in visible places in the waiting room. b. LICALLA (LIENPTYeS) : Spanish only should be used, After 1630 hours but before 1800 hours, phone to his place of cover business (phones: 6-56-15-44 through 48) ard ask for LIEMPTY-9, Caller should identiiy himseli as a Iriend of Victor and state his own jnuterest (nm Lavin sume raves td insured threugh hin. Add that the caller would Like to discuss the matter with him over a cup of coliee, Arrange dato and time (about 1706 hours) ot meeting. Prearranged piace: Woolworth Store at Retorma, near the Reforma Hotel, in the hardware and tools department. LIEVPTY-9 will have & briefcase (ov attache case) 2nd a rolled up newspaper in the game hand. where car I get a tape measure PASSWORD; Officer: Please, calibrated in {ncnes? 1 need it for my ° Club, LIEMPTY=-9: You should have no problem in finding One. For positive identification the officer will show last salary receipt signed by LIEMPTY-9. LIEMPTY-9 will pull out of his briefcase a Monte Co. application form with his name written in t The first and third Tuesday of each month LIEMPTY=-3 will be walking in front of SEPS=-Paris Restaurant, en the Insurgentes side, from 1620 to 1630 hours, with his briefcase as stated above, Password and identification are as stated above. rrey Insurance he upper right coraer. z y-iS): i 3 be used » UILYRIC (LIEMPTY-13): | Spanish only should . | rhone his place of work (3+-20-80-20, ent 367), his secretary usualiy answers,.and ask LIEWPTY-195 i4 he received the present his friend Victor sent hin, bec2use Victor has not heard irom him for some time. 2 will answer negatively re the bry request ti ith LIEMPTY-13 ° aller will request a meeting wi ] PTY= Prose o he wants to be able to tell Victor how his friend the Ingeniero was, Arrange date and time ot meeting. Place is prearranged: ia the Koala Restaurant-Cafeteria at the corner of Ejereito Necioral ant Mcliere (Gigante Super Market. parking lot). LIFMPTY-15 will be sitting (or standing) in eens (ann Tee PAGE NO FORM co, SECRET | Lx] conmues | 4 a64 532 USE PREVIOUS EDITION. 1&0)