(1o4-10248-10040] « Pd . 8, eo —, — * e - CAST i |_DISPATCH | scaricare | : Chief, WH Division : is _ rae Chief of Station, Mexico City ao suaxecy Operational /LINUFF Field Project Qudine AG TiOte RELARRED - REFEREES REFERENCE: A, DiR~$5153 ; B. BMMW-l32ZI, 27 Feb a3 1, Enclosed for Bea iquarters" agprovel is tee field piroject outline for | LIHUFF. Detailed information regarding LISUEF-f is beimg forwarded by { separate dispatch with pmstification and a regiest that he be hired as a i | contract agent. ; | ‘ 2. The Station comtinues ta attemut to Sud oomeribetions for LIHUFF from private firms. There has been seme success im this effort, but this assistance has been on @ spot besis. (4s Heaipuerters is aware, Mexicans contributing to such am erganization camot Lerefat by tax rediuctions.) The funds not provided to LEHUFF by te Statiom came from the group of wealthy backers listed as Identigy D. We shall continue to stinnclate private support, i and will advise Headquarters of any renular. sigmZicamt coeiributions. canna on ainewne wom + & 7 fy 1 ~ ~ H : Enclosures: “ ~ H i 1. Odd numbered pases, h/« : { : . Even numbered pages, u/s/c | 3. Appendix I, uf/s/e ; 4. Appendix H, u/s/e 5. Magazines, ufs/c ans Distribution: SO0- Yad -2 eh | | Eo) OATE DGPAICHED = WH, w/encls (orig & 4 copies p | 20 Baar 1963 | 22 Mar 1963 : f BRMMMA=-20931 & } ; memes eye ene ae o> nny atte a mene mene nett aa ee 2 ee
14-00000 PECMECT OUTLINE . CRYPTONYM LIAUEF SEATERN MEsECO CITY CHIE OF STATIO? The attached project is presentec for zesprwval. - _ SECRET /RSPOR Esc? fh rf shrmg-feg $s ove femgercemey gain o las cy (aeY -  ge-fay- eh EN Ades g he oa weed 2 emer ets me ae net ees a: ' — deny * Zo
SECRET /KAPOK Mexico City, Mexico ~- Political Action. See C, below for other countries which may become involved.- Yo support and sustain a long-established, proved, anti-Communist front exgamization im Mexico. To encourage the expansion of the group's presext efforts in provincial Mexico, and, to some extent, in other countries. To cbtain a measure of significant control over the organization through this continued funding. To guide the group in increasingly more efficient methods of fighting Communism and fostering pro-western programs, such as the Alliance for Progress. To accomplish the following objectives in the Related Mission Directive: Priority A. 2. a, ec, d, e, f, g; Priority B. 1. a, b, d. LIHUFYF (identity A) was founded in 1953 under the auspices of a grocp of Mexican bankers, industrialists, and merchants to spread the principles af free enterprise and private initiative. Since its founding, the group kas arranged a mumber of meetings and congresses designed to exglore the dangers of Communism (particularly in its economic asperts} and hyper=-nationalism. It has also financed the publication of pamshlets, bulletins on economic matters, and books. this prowp (LIHUFEF-2) received support from LIHUFF-l and the business fires whteh LENUFF-i headed in Mexico until 31 December 1962 when this coregany decided to give up its franchise in Mexico. The director of in Bune 1960 LIHUFF-1 visited the ODACID Political Counselor and requested am ODACID contact with LIHUFF-2's organization, Subsequently, Chiat, ODACID Mexico asked the COS, KUBARK Mexico, to explore the possibiliey of giving financial help to the group headed by LIHUFF-2. In mic=Ausust 1962 (HMMS-2530 RYBAT), Oliver G. GALBOND advised the Mexico Station that the group had been receiving partial financial aid from a group of PBPRIME business corporations (solicited by Mr. Henry Hotand, now deceased) and that KUBARK Headquarters had also provided secme financial assistance through this channel. After the death of wa2ea SEGRET/KAPOK ; “te 63 Ci? SEMEL DA hing -~-D0G 30 Seat tat  Tee Soe ae ae OR eee cate coe PET ee on rainy men apa ae i i ' et Sr cosas we
SECRET/KAPOK Mr. Holland, it was recommended that the funding be handled through the Mexico Station, Specifically, this was to help pay for the publication {Identity B). The local ODACID Chief was consulted. He replied that he thought LIHUFF~2 was one af the few economists in Mexico fighting Communism, The ODACID Chief also said that everything possible should be done to support the LIHUFF publication (HMMT=-3023 RYBAT 1926, 30 August 1962). . The LIHUFF organization has its offices in Mexico City, with associated offices in Salvador and Guatemala, and working contacts in the provinces of Mexico and in several capital cities of Latin America. LIHUFF devotes its efforts to selling the free enterprise system aa an economic way of life and in defending at every turn individual liberty or freedom. In Mexico this type of organization is rather unique, as the trend in Mexico is towards more government intervention. LIHUFF maintains an excellent library of source materials on economics and free enterprise, which is open to interested researchers. LIHUFF publishes regularly a considerable amount of materials, including the monthly publication (Identity B). See Enclosure 5 for samples of LIHUFF publications. , The group is extremely active in the student field, in the provinces as well as in the capital. It supports student publications; has organized a national student group (Identity C); and engages in militant student political action. LIHUFF also prepares and sends out to provincial newspapers editorials featuring anti~Communist themes. In the last four years LIHUFF has collected 65 loose-leaf binders filled with editorial clips authored in the LIHUFF office. LIHUFF also sponsors a training course at which interested groups (of 15 to 20 persons) are indoctrinated. LIHUFF-2, Director of LIHUFF, has shown completeY dedication to his program, The men.bers of LIHUFF, especially the students, have demonstrated courage and conipetence in a variety of operations. i D. Operational Assets. 1, Personnel. LIHUFF-1 is a 47 year old PBPRIME businessman who acts as a oo 9 ae SECRET /KAPOK -- fey mAb ND ov crhteenanns aterene | ; z i t tetvee gee nee, ow opatns gas = Eitan ‘ “ irpgent tS
14-00000 ' SECRET/KAPOK . 7 cut-out and operational adviser to LIHNUFF~2, the Director of the group. LIHUFFe-l worked for KUBARK in Panama from 1947 until April 1949 when he returned to Mexico. He was in contact socially with members of the Mexico Station and in November 1962 was hired for the above work, Biographical data is being forwarded via separate dispatch. He is contacted by Willard C, CURTIS or Michael C, CHOADEN. Training is not required since LIHUFF-l hag been in intelligence work from his service with PBPRIME military intelligence during WWI. He was engaged to work for PBPRIME military intelligence in Mexico until recently. He knows that he is working for KUBARK. HMMW-11040 of 25 October 19u2 granted OA for LIHUFF-1l. ney LIHUFF <2 is a 46 year old Mexican lawyer. He is alao a well known economist who directs an economic research organization in Mexico and other Latin American countries. He is met by LIHUFF-1. LIHUFFeZ probably suspects that funds may come to him from ODYOK®; however, cover used is that the money is from private business groups. He was granted an OA on 26 October 1962 (HMMW~11089 of 9 November 1962). Ze Mechanisms. _ a. The principal officers of the Identity A group are listed in Appendix I (separate cover enclosure No. 3). Other details of the ; organization are included in C, Background above, b. The LIHUFF organization frequently and regularly makes press placements in all of Mexico City's leading newspapers, Its ‘ editorial features are also regularly accepted by provincial publications, Radio and television placement is on an irregular basis. (1) General pro mganda and political actions of LIHNUFF will be influenced and guidedty the Station for its benefit. . i (2) LIHUFF student operations have already been utilized (often in coordination with other Station student assets), (3) The LIHUFF editorial service for provincial news= papers has been used by the Station. (4) The press~placement capabilities of LIHUFF in- - Se" capital city newspapers, which is considerable, has been used, This will be taken advantage of by the Station for KUBARK purposes. ; (5) LIHUFF's international connections, especially his . associated offices in Salvador and Guatemala, will be exploited, - ou ; SECRET /KAPOK . ate + SAOtet smear Hh mA seg ne | eerie been Goreany ess —eemapegroncirin = balieycey ne. amo oper
14-00000 a we rtere ee een were ee : SECRET /KAPOK (6) The Station will call on LIHUFF to fill research needs. E, Security Evaluation, The LIHUFF organization is funded through a cut-out in such a manner that KUBARK participation is concealed. It is not connected in any way with any other KUBARK operation. . F. Coordination. All coordination with other PBPRIME elements will be handled by COS Mexico as such situations arise, For the present there are none, In the past, ODACID Chief Mexico asked COS Mexico to assist the group ‘financially, Also, the operational use of LIHUFF-I was cleared with ° Se PBPRIME military intelligence when it was learned that they also had an interest in using him in clandestine operations, They are not using him at the pre-ent time. G. Costs. 1, Itis requested that the following estimates be approved for use in the LIHUFF project for the period 1 May 1963 through 30 April 1964; Fy 1963 FY 1964 LIHUFF-1I Salary $1,000, $ 5,000. Identity publication 2, 400, 12,000, Identity student organization 1, 60¢, 8, 000. Total $5,000. $25, 000, Station Mexico proposes to pay only a portion of the LIHUFF operation, it is not intended that this partial support will make LIHUFF a completely controlled Station asset. It will make it responsive to Station guidance. The organization receives funds from private groups Sut the Station does not know the amounts or all the donors and it is unlikely that we will ~ know these exactly. The Station, however, will be alert for the future possibility that the LIHUFF may begin to operate solely on Station funds. Should this eccur, steps will be taken to place the organization under complete, classic control, 2. Foreign Currency. There are no specal requirements for foreign currency. ow 5 a0 SEGRET/KAPOK ih 7 tn eae dite bela nese atin ada. aster:
14-00000 SECRET /KAPOK 3. Commitments. - i No permanent commitments have been made, 4, Funding and Accountability. Funds will be paid to LINUFF-1l by COS Mexico. Receipts will be obtained. The money will be paid in cash in local currency. There are no unusual funding and accountability requirements. i H, Annexes. ety Sem 1. Administrative Plan or Fiscal Annex. It is not believed that this annex is required for the LIHUFF Project. . 2. Communications, There are no communications requirements for the present time. . 3. Technical Support. There are no technical support requirements for this project. meet eae memes eye et 4. Logistics. : . wt There are no logistical requirements for this project. 5. Intelligence. Operdional intelligence from other PBPRIME agencies is not required, . ‘ 1, Emergency Conditions, Since the Director of the group is a Mexican national, he could continue living and working in Mexico in the event of emergency antieODYOKE my situations; however, he probably would not outright attack his own govern= i ment. It is likely that the group locally might lose its effectiveness or cease to function in Mexico. However, a change in the Mexican political weteyenenpewars sarah oe ~ Ne erm. ames ~b= SECRET, KAPOK GS COPY a — . ENMCL HY A LAMM A= BBGS)
14-00000 Re-woaren o weR OS nee eG at abe. SECRET/KAPOK i, scene may not affect the g.oup’s offices in other Latin American countries. In the event of an ernergency situation, contact can be made by the COS with either LIHUFF-i or LIHUFF=2. , NOTE: For a note on the production and some successes of the LIHUFF organization, see Appendix Ll (separate cover enclosure 4), ~Jo - see ragy ence #/h tHharan-aogss TSU eek ee | | PSAP ERO eee earttne nape ere HOE Ye ome oyenee me veo eeepomtr ones mytapeage som sa vaeaaned ts deel pie tm pothoc rine 8 walred 6 yt
14-00000 - i ° , ’ - - i *, * mt _ j - SECRET /KAPOR Enclosure 3 to HMMA~ - ae ~ mo 20931 (UNDER SEPARATE APPENETE = Identities: B. ee economics jrornal sich strongly supports the ree enterprise system. D, Principal Officers of I above: ; Director: _ | | i SECEZT/Z2>CR : ES gar 77 ENC L #3 & HAA A- AEG BS wor were garter cgaey Ce en eee top ote es memes wesemsecnen + 6 eet eee, ‘ Swat
14-00000 SECRET /KAPOK The Gles af tre Wexice Station have been checked for derogatory infor rcaticon om tne nase tory information - om anyone cf tienr = Efforts will be : made via Like Y-i tw get him removed from the organization. . it a i] i 3 u f : a ii. an: . i i i ! Hg i ; i ! q Mu : . ° I om poe : SECRET /KAPOK a ono yg Sees sent es as Ne ce wn cattthadlep tacos > ore meme ntttay tlt on spr 4 ‘
14-00000 SECRET/KAPOK Enclosure 4 to HMMA= 20931 (UNDER SEPARATE COVER) APPENDIX Il The Organization and its Director have: a. Furnished the Mexico City Station with index cards and summary information on some three (3) thousand Mexican Communists, Although almost all of these Communists were already known to this Station, the data confirms Station information and, in some cases, adds to Station knowledge. - bo Organized a nationwide right-wing, anti-Communist and active student organization in the nation's universities. It ia called publishes la fighting anti-Communist student paper and has organized shock brigades ready and willing to take offensive (street fighting) action. has been very active in the National University of Mexico (UNAM); the University of Puebla and the University of Michoacan. In the last two ean claim a large degree of the credit for ousting Communist rectors at these universities. ¢. Kept its bctively attempting to counter overwhelming odds and advantages held by; pro-Marxist economists and their teachings in Mexico, Chief ODACID believes the Director and the organization are most useful in this regard. d. Taught groups of students pro~capitalist, pro-free enterprise economics ~- a rare and much needed service in Mexico where the Communists have taken over the field of economics in higher education, e. Continuously published pro-PBPRIME, pro~free enterprise and anti-Communist articles in Mexico City's leading newspapers and in the provincial press of Mexico. {£. Attempted to spread to other Latin American countries , and to coordinate with appropriate organizations and individuals in these countries, anti~Marxist economic theories. @. Some examples of production from this organization are: (1) HMMA~=-20947 of 14 March 1963; (2) HMMA=20306 of 3 December 1962; (3) HMMT-~-3106 of 28 September 1962; (4) HMMA~-19296 of 6 July 1962; (5) HMMA~18685 of 9 March 1962;.(6) HMMA~18678 of 6 March 1962. SEC BS vay ECRET/KAPO _/: - ENCLAD b Hypa -hOG 37 R K {0 SAY ety, ne me mene "TTD Mmupeioy = at Me tee get cemnapeyenaOREENENOG A fee ++ <= womer _scmegupaRRTRFIR gp wonton | { 2 ab sawe acest ebancods —