14-00000 r Biaider’s 3 . MSMOSANTOM FOR: Chief, FI HRADQUARTERS CASE OFFICER: SUBISCT & Anend LISMPTY Project to Include a a ROOM eli) Barton Hall Special Benefit for Oliver 6. SCANTLING (ps) and to Include EXT. 2555 or JLoe Louise J. MACHILO (ps) Tats___5 Narch 1959 1. It is requested that acproval be granted to give Oliver G. SCANTLING a Special benefit of one year's salary to him or his assigned heirs in the event of loss of lize or total disability if incurred in the performance of duty. This banefit was included in a contract prepared in the field and signed by Subject on 15 February 1957. The contract was not submitted to Headquarters for approval until Decenber 1°55, The Station and WH Division do not want to delete this beneTit from Subjact's contract at this tima and wa feel Subject deserves this benefite 2. SUANTLSNG, a civil engineer, is a Mextcan citisen, who is LO years old. He was cranted an Operational Approval on 2 December 195i:2 SCANTLING beran his employwent with XUSARK as a footman on the LIPSTICK physical surveillance team and gradually becane a driver of a surveiliance automobile, then team leader. As team leader he was resconsible for the operational deployment and administrative direction of the entire LIPSTICK team, three automobiles, four photographic and radios dispatching basehouses and the attendant mobile and stationary radio equinment. He collated the fragmentary surveillance reports into finished intelligence reports for study by the Case Officer. SCANTLING devaloned into a fine investipator and has obtained infor- mation where other Station investigative ascats hava failad. 3. Almost all of SCANTLING's time now is gpent following up leads obtained from telephone interceots and photographic surveillances. From July through December 1956 he sade aoproaches to individuals performing services for tha Soviat: Embassy and he made a detailed casing report of the West German Embassy. In addition, ha conducted many routine investigations and surveillances., The Station plans to _ have SCAITLIYG attempt to recruit the landlord of the proposed basehousa for a LINISENT (F3/D) operation. SCANTLING no longer nandles the surveillance team and the Station clans to continue to use him as an independent asset. SCALTLIUNG has in his possession official cradontials of the Federal Security Police (DFS). He has used - these credentiasis in making contacts with targets of various sensitive Headquarters! operations (i.e., LOMAYFOUL) » he Ag a ecraduate engineer who has spent at least ten years in house construction in Mexico, he nas been invaluable to the Station in submitting detailed casine reports, including detaiied and professional plans of technical targets. He has been commended by TSS for the support role he has played for them. He has sulmitted several casing reports on the Soviet smbassy and is an unparaileled source of information to the - Station for information about the Embassy's construction activities, modifications * and reasans for sanee 1 SEGRE Luiz
a on arenes om Thee 2 S,» For your information there is attached the Station's review of SCALTLING | for the period July through December 1958, It is believed you will Mind tals recert of interest and further support the justification octlined above for the granting te SCANTLING of the special death and disability benefit. This agent assessant states ~————"WO liver 0. SCANTLING nas continued to perform his agssiged tasks in an outstanding mannere SCANTLING's poise, comnon sense, education, ideology, and native ability for the pursuit of clandestine activities make him one of the most valuable supsoort assets available to the Mexico City Station. The fact that SCANTLING has a fal) tine overt occupation as Chief Engineer and Production Manacer for a local mame facturing company adds to his longeranrce potentiai as a KUBARK agent"™, SCANTLING has excellent cover as half-owner of a local firm witch manufactures farm instru- ments and he represents the hizh calibre of person waich KUEARK requires for the institution of their longeterm resident agent program. } 6. The LIEMPTY Project (now approved for $95,352) will not be ananded ab this -- --bine to includo.an.extra year's salary.for JCASTLING (32,000), Ii the event it becomes necessary to fulfill this comnuitment during the project year, and if the expense cannot be absorbed by the present project sutnerisation, an amendment will be submitted. 7. It is also requested that effective 1 Maren 165° the LIEMPTY Project be amended to include LouiseJ. MACXINO, a Contract Asen?, who is a Station suorort asset. Her OA was reinstated on 4 Aucust 1958 (C-41352). She was fornerly included under Project LIFUAT.. However, the Station requirements for general translation work increased to the extent that it was necessary to usa MACAI:O to translate revorts other than those originating from LIFSAT. It was tnerefore decided it would be more approoriate to include her under LIEZMPTY. She does «rviag of reports and non-sensitive translations. She is paid on an hourly basis of $2.02, an estimated yearly salary of $3,500. The Station stated that the present LIcMery Project could arsorb the expanse of her salary for the remsindsr of the Project year. me eee - Re de Dahigren, ofan ily Attachments: Folder with LIEMPTY Project Approval f , _ Envelope with true names 1 HYMA 12095 (1 copy) FAPOR . Tate /
14-00000 q7anr - TE eee ba cmeapee sng : ; . te ao Wade i t , + .O beeen amen a oe semen \ . MEMORANDUM FUR: Chief of Operations, 9D/P 16 yar vest SUBJECT : Project LIEMPTY (Approval) WH - Mexico City : aa’ \ 1. The attached project, originating in WH Division, is presented | ‘for your approval for an initfal period from 1 December 1958 through 30 November 1959. The project provides for the development of operational information through physical and photographic surveillance operations ia support of other Mexico City operations, particularly those targetted at Soviet personnel and installations. Previously these operations were con- / ducted for the most part under Projects LIPSTICK and LIJERSEY. They are incorporated in this new project because of the June 1958 compromise of LIPSTICE and to accomplish a more orderly administration of certain opera- tional support assets. 2. Authority is requested to obligate $95,380 from the DD/P-WH Division operating budget: - $65,580 for the current fiscal year and $29,300 in fiscal year 1960, subject to the availability of funds. These estimates include: (a) funda for the compensation of the presently- ' veerulted fifteen action and support agente » Six new agents, and two principal agents: Raymond H. GERSNDE (p) (LIEMPTY/1, formerly LIPSTICK/20) and Oliver G, SCANTLING (p) (LIEMPTY/2, formerly LIPSTICK/19); (b) funds for the compensation, travel, allowances and Headquarters’ training of two contract agente, Simon D, CLACKETT (p) and Wilma J. FIORDALISI (p), his wife, who are hereby transfsrred- from Project LIMESA; (c) funds for operational expenses and equipment, including the purchase of four new or used vehicles aa replacements for previously authorised vehicles and their maintenance, and a OP vehicle for SCANTLING; (d) the rent, utilities and maintenance of aafehousea; and, (e) other appropriate operational expenses. } 3. The attached Neld Project Outline, a covering memorandum from the Divieion, and an addendum to the Project Outline, review the personnel assets and facilities tranaferred from the LIPSTICK and LIJERSEY operations following the partial compromises of LIPSTICK in June 1958 and describe the concept of the physical and photographic surveillance operations to be conducted under thia project directed primarily at the Soviet Nmbassy in Mexico City. These surveillancesa provide photographé and other operational data of peraons entering and leaving the building or presant in the garden area, and through additional foot and mobile survedllances, investigative information concerning their contacts and destinations. Agent personnel, particularly the principal egente, are used also to conduct separate investigations, make recruit-approaches to ae TD Aout een |
14-00000 erty Wr de d s de 8 individuals of operations] interest, and to rent rooms, and apartments and perferm cther support activities. The fixed surveillance baseg, LIMITED, LILYRIC and LICALLA, have’ been in operation for almost three years without - having. been ‘in any compromiging situations insofar aa the Station knovea. The. LIPSTICK unit, a panel trick equipped with cameras, etc., is considered @ partioularly valuable asset by the Field. As a replacement for a staff agent, Wilfred 0. CLOWSR (p), who directed and trained the LIPSTICK surveil- lance team, the husband and wife team of CLACKETT and FIORDALISI are proposed “as qualified individuals to reorult, train, and direct the new LISMPTY eur- “weillance team and maintain its records. Appropriate notional cover was arranged for them while in their previous project, LINESA, aa they reside in Mexice- under true namweg. One of the principal agents, GERENDE, will have no contact with the new. surveillance team, but will be used to conduct special investigations, counter-survoillances, and for other gupport activities. 4. The CI Staff comments that LIEMPTY provides several types of physical surveillance, all of which provide information of CI interest, and as a support ") mechanism, a production review iy not appropriate cr necessary. The CI Staff ‘ states further, that vith the compromise of the LIPSTICK surveillance team the Mexico City Station lost ita only reliable ani efficient surveillance team, LIEMPTTY representing the Station's effort to replace that asset. Pecause of the great, number of CI targets in Mexico City, the CI Staff believes it is essential that the Station be given the opportunity, through this project, to build another surveillance team capable of operating againat sensitive targets. additionally, the CI Staff believes the case officer should work at devising ostensible sources of incomes for the agente which will stand the acrutiny of friends, relatives and less friendly forces. 5, FI/OPS suggests that the Divigion consider a gradual reduction of the considerable financial and personnel commitments in this project in view of the favorably developing LIENVCY liaison relationship. FI/CPS believes that a smaller, more manageable support group, with greater Station emphasis on selectivity of tagks and targets could well result in more effective CI and FI productivity.