14-00000 SECRET. $9 may 1570 .MBMORANDUM FOR : Assistant Deputy Director for Plans MPS/BG- Renewal of Project LIEMPTY THROUGH SUBJECT 1... WH Division requests renewal of Mexico City Station's Operational Support Project, LIEMPTY, for $23,635 for Fiscal Year 1971 and a $10,498 amendment for FY 1970 to cover termine ation paymente to a former Principal Agent and his wife. Last year LIEMPTY was approved for $38,970, One agont termination and the transfer of the cost of a mobile surveillance unit to another project are responsible for the reduced FY 1971 reyuest. 2. LIEMPTY supports a visual and photographic surveil- lance of the Soviet Embassy in Mexico City. It includes a Principal Agent, Raymond H. GERENDE (P), and 6 subagents who maintain two separate safehouses, one in front and one in the rear of the Soviet Embassy, from which anyone entering or leaving the Embassy can be observed and photographed, The various members of the team handle and service the photographic equipment, develop: and print photographs, keep observation reports.and logs, including the arrival and departure of tar~ get persons, and maintain the two safehouseg mentioned above, 3. This project does not provide positive intelligence, except incidentally. It is designed to furnish a running ‘account, both photographic and in writing, of all Soviet Embassy personnel and their visitors arriving at, or leaving, the Embassy, Photographs taken by LIEMPTY personnel were used to produce an updated "mugbook” on Soviet officials in Mexico which has been loaned to other US security agencies for operational use in activities targeted against Soviet services in Wexico City, LIEMPTY agents aleo provided infor- mation which enabled the Station to identify the companions of known KGB officials, to identify the habit patterns of new arrivals at the Soviet Embassy and provided a wealth of other information of operational value concerning Soviet Embassy activities, 4, <A security problem, resulting in a Station decision to restrict the activities of GERENDE, place him on half pay, and replace him with a career agent (a valuable asset who tale ft > mW i '
14-00000 ast _ SECRET “ aaa also handles SB operations) arose during the project year, GERENDE has been having marital difficulties which may end in divorce, Along with other incompatible features of the marriage, which havé resulted in numerous family fighte, there have been long, bitter and violeht arguments as to who " will ‘have custody of their 4 children and concerning a mone~ tary. settlement; - The Station has become involved in these && an agency vomptoyee.. “She has promised to keep quiet but there ig no assurance that she will do so. In view of the risk involved, should ‘GERENDE's wife expose his agency rela- ’ tionship and in view of the fact that, despite his 15 years of service and his undisputed ability and experience, other unfavorable qualities militate against his retention, the Station is considering terminating GERENDE, It is proposed © to pay him a termination bonus of $10,000 for 15 years of service in accordance with Mexican Iaw and his wife $2,500 as a security measure designed to keep her quiet. After discug- gion with the desk, FI Staff beliewes that, if GERENDE is paid the $10,000 termination money, it should not be given to him in one lump sum but should be paid on a monthly basis, the amount per month to be determined by the Station, thug eliminating the possibility of his squandering it all at once and possibly coming back for more of the same. The same procedure should be followed in the $2,500 payment to his wife. In bog$h cases at least an element of control is ‘>- assured in that both GERENDE and his wife will know that con- ‘tinued receipt of their monthly payments will depend upon their continued loyalty to the agency. In the meantime, we feel this man, whose morale, and ability have been seriously affected by his marital strife, given time, can perhaps be rehabilitated and once again become a valuable Station asset, This would ensure his continued loyalty and give him an income out of which to pay his alimony. Aside from the foregoing there wore no other problems, security or otherwise. Ail , meetings between the case officer and the new Principal Agent are held under secure conditions, or more often if necessary, at prearranged dates, times and places. Meetings between the P/A and the subagents are held under similar conditions. The - Station has been requested to submit an updated emergency re-= contact plan to be included in the first FY 1971 quarterly program report for this project, 5, Agents’ salaries, safehouse rentals, motor vehicle “maintenance and travel, property maintenance and Christmas bonuses will total $23,635, Despite the security aspects related to the marital difficulties of ‘the erstwhile P/A, SECRET
14-00000 oe, | ™ SECRET ’ : | . i . this ia an excellent operation which has been described by the Station ag répregenting a highly effective and highly useful support mechanism. SB Division has stated that, although relatively ‘inexpensive, it ia a very worthwhile and valuable preject. FI Staff recommends approval with the stipulation that the. recommendation with respect to payment , of tormination- bonuses . to . GERENDE and his wife be carried out. A. LL ; oat : . Chief ; Foreign Intelligence | Attachment Project t SECRET oe
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