MEMORANDUM FOR: Associate Deputy Director For Operations SUBJECT 1: Project @@meACTOR - Amendment and Termination Request. POPOL Me vir y gf are 14 i BID T AV As: r we ee PUP? 1, The KDFACTORPREAGE [AnBiity pagencrypted as the LIEMPTY Project) was initia Gh oF ved in 1958 to provide financial and material support for . visual-and photographic surveillance operations targetted against the Soviet Embassy in Mexico City. .In June 1972 the project supported five’ agents and two basehouse' surveillance sites. Ye » Vr 2. The pF ACTOR. Project was approved by the ADDO in the amount of $19,000 for FY - 72 and “ - $20,000 fur FY - 73. Per DIRECTOR 285255, dated 30 June 1972, the ADDO approved Amendment N). 1 to the #@PEACTOR Project in the amount of $9,844 for FY "72 to provide for costs of agent terminations. ne 3.: The decisiongto terminate all agents and : facilities under the M@@PkACTOR Project was based \ on a security review ot the project activities a) ‘which indicated that the YWBLANKET principal knew the basic details of the #QPFACTOR operations, . including the target, the*focation of the surveillar-e. sites, and probably the true names and former cryptonyms of the agents covered by the project. ae 4. The cost of terminating the agents under the KDEACTOR Project amounted to $15,573; the cost of closing down the two basehouses under the project was $1,412. The total amount charged to the KDFACTE-R Project in FY 72 was $56,090 which is $7,246 over the approved authorization of $28,844. The overage was: incurred in terminating the agents and facilities associated with the gg@mpacror Project... Although Amendment No. I to the®roject was approved in the amount of $9,844 to cover the cost of. terminating the agents in the 7 yb lee 7 7 tl 53216 DoclId: 323927971 Page 2
ae 2 e . . moe project, the actual payzicnts made by Mexico City Station per the terms of each Memorandum of Oral Commitment (MOC) and in accordance. with Mexican law and custom exceeded the estimate for termination costs made by Headquarters at the time the Amendment was requested, Termination payments made to each agent are as follows: | | MNFACTOR-2 (Recruited 1956) $8,160 WHF ACTOR-5 (Recruited-1956) 2,366 ‘WAG ACTOR - 6 - "(Recruited 1956). 2,830 1. 7 oo BANFACTOR-S | _ (Recruited 1965) 649 Pi NENFACTOR-9 (Recruited 1966) 1,568 _ The long tenure of three of the terminated agents, the relatively high monthly salary of GAY ACTOR-2 ($440) plus the computation of the “formination payments in accordance with Mexican - law and custom were the primary reasons that the -_ final agent termination costs amounted to $15,573. | - } 5. All agent terminations were accomplished in an amicable manner. No visible security risks were apparent at the time of the terminations although any one, or all, of the terminated agents may at some future date decide to divulge to an interested party the details of the s@NFACTOR Project \ ~ operations. @@BFACTOR-2, AMYFACTOR-5, and <@NPACTOR-6 have worked in*photo surverllance operations for the Station since 1956 and, therefore, obviously have considerable knowledge of targets, former safesites, personnel, and modus, operandi of the Station. However, since the g@yFACTOR Project was not concerned with incompatiblé operations or targets, we believe the risks of damage to Station relations with the Mexican Government in the event of exposure of the gigWFACTOR Project operations by a terminated agent aré within acceptable limits. 6. It is requested that theM#KFACTOR Project be amended to provide the sum of $7,246 for FY - 792 to cover the costs of terminating five agents and two basehouse surveillance sites under this project. “ww 53216 Doclaig2392971 Page QUT Cece oe