(404-10188-10032 ‘ 5 a q 19 June 1963 SUBJECT: Renewal of Project LIPEAT for FY 1964 ‘The attached LIPEAT Project Renewal Request, as prepared in project. outiine form by the Mexico City Station, is forwarded for approval. 1. Objectives: ‘The objective of this project is to provide, through a telephone tap operation, information on the activities of selected individuais and groups in response to both Station needs and Headquarters requests. 2. Agente: a. LIENMBRACE-8 who normally functions under the MKCHARITY Project was actively employed in the technical -phase of the- operation during..the home leave. period of... Seana ae enn ae principal outside case officer, David M. WILSTED. b. Buring the past project year, 3 indigenous basehouse keepers were dropped from the project. LIFEUD-14 and LIPFEUD-17, a married couple, decided on separation and eventual divorce, thue making the continuance of their basehouse keeping duties impossible. LIFEUD-22 and LIFRUD-23, gon and sother, occupy a baswhouse that was originally intended to be used for LIFEAT but ia being uged only in another operation. LIFEUD-27 waa granted a POA during the project year but was never recruited. ¢. Three now agents have been employed since the last project renewal. LIFEUD-24 1a an old friend of WILSTED's who will be uméd as a basehouse kocper and trans= lator nlong with LIFEUD-26 who is hia wife. LIPFEUD-25, the wife of LIF EUD-4 had been included in her husband's clearance but Bas now received her own clearance as a basehouse keeper. 3. Changes: ‘@. Other taan the personnel changes described in paragraph 2. above, there were no organizational changes in the project in the past project year. At this time no
14-00000 Fe ? organizational changes can be forseen for the coming project year, b. Funds requested for FY 1964 total $83,808 compared to $99,000 granted for use in 1962. A great part of the reduction of $15,192 is due to the fact that the Station programmed no new equipment purchases for the coming year. , 4, Intelligence Production: Although the emphasis of tho LIFEAT Project is on Station operational support, the project through May 1663 :-Was totally or partially responsible for Jl positive infor- mation reports of which 29 were diuseminated. Of the disgsem(nations, 13 involved the activities of Juan Jose AREVALO Bermejo or his followers, §. Effectiveness: The LIFEAT Project in a model telephone tap operation. During the last project year LIPEAT continued to actively support the operations of the Station by providing leada and information un selected targets. In addition to this mission the project provided on a regular basia valuable information on active Soviet intell- tgence officers, the Polish and Yugoslav official install- ‘gations and personnel, solected Cuban personnel (10 Lines), American Communista in Mexico, Moxican leftiatea and, exile groups in Mexico, In the latter field the tntensive coverage of Juan Jose AREVALO Bermejo wan particularly rewarding. It in believed that the support provided other Station operations, the Cl/CE information and leads, the ability of the | LIFEAT operation to cover sansi- tive targets without revealing Station interests to well juntify the oxponditure of funds, vime, persaonnol and the security rink. 8. Problems: In the past year as in the past few years the greatest problems have concerned the security of tho oporation and equipmont. The current problema conter on two devel opments: a. The Mexico City telephone system is continually being modernized. Installation of new underground - cables replacing the ol¢ overhend lines reduce access to target lines. The Telephone Company is keeping +
=3~ + closer track of the agsignments of its telop . dinemen thereby reducing the mobility of the heey b. A governmont investigation which ia uoder way allors investigating crews to enter any distrie bution box, afd check back on any connection in the box to see if it is actually in use. On one occasioa. LIPEAT rang back on a spare which was being used by Ail LIFEAT porsonnel have been trained to take whatever action would be neocenary tu prevent, or negate tho effecta of a security flap. For details of the orublema faced and the precautions taken by the Station, _ 800. paragraph .14 of the attached Project Outline. 7. Liaison: Not applicable 8. Interagency coordination: Rot applicable @. Plans: it is planned that LIFEAT will as in the paut provide valuable information on a continutng basta on top priority targets and at the same tims remain flexible enough to be employed in support of other Htatton projects Against targets of opportunity. LIFEAT has the capability of reactivating ite coverage on t:« importaat targets now being covered by tho| JLIENVOY Project if the: latter should have to be discontinued for any reason. 10, Funda: Sufficiont funda have been programmed in the WH Division's FY 1964 budget for the LIPEAT Project. 11. Recommendations: It is requested that Project LIFEAT be approved — for FY 1964, 1 July 1963 through J0 June 1964, ia the amount of $83,808, to, oe fe Peon