- ° . = i . CLASSIFICATION . Giseaten $y MDOL AND NUMBER CONTINUATION OF |” DISPATC ace | ss CRE T | __HMMA-39183 _ ' the waiting area holding a mediun sizdd manila envelope in one hand and two ‘addressed but unsealed airmail cnvelopes in the other. . PASSWORD: Officer: Can I catch a bus for Santa Monica here? LIEMPTY-13: TI am not very sure, but I will ask soriebody . tea ; For positive identification, the officer will show last salary : ‘ veceipt signed by LIVWTY-13. LIEMPTY-13 will show a folded : box of Colgate tooth paste. On the second and fourth Thursday . . of each month, LIEMPTY-13 will be walking iu front of the 8 above-mentioned Koala Restaurant-Cafeteria, on the Ejercito : . side, from 1330 to 1340 hours. AS a recognition sigral he . will bold. the three envelopes as described above, except that if it-is raining,;-he will have all envelopes in one hand but arranged so that the two airmail envelopes will be easily visible, Password and identification are as stated above, ° YVineent P. RIZZUTO a So-6-7413 ee AB UIECATION TRAGERNG FORM ; ROITION. . SBCRET [| £08" §3_ use PREVIOUS CONTINUES 5
14-00000 | | é SeOrk SCRE TAR a: wise mia LUN & f assiP RU MESsauL VIAL Luria = Prete ssa BRT 1602 torent OE rain eh eine ER SECRET | cmoue rs : Athen Filed tn) “eer 6 | " sovanca-eory [7] ssue0 (J morrao REPROOPCTION OF THIS COPY PROMBITED +————}}] woan, (C)ves (]oo CL Ary TS C8 FE NO. Cee ne ee ey BV! ceccmmmemermans 8! cumermmmememacnenmnetmmanne O REP TSO CE PLE NO. omnes ay a ven o | O eneno O nerum room ane OB & E] Fm, VR wy & pulpy bes rftc2 Fr 2. 8s ECR ET 1622162 APR 7@ CITE MEXICO_CITY 2984 DIRECTOR REDTOP AETARGET AEKICK . Heart p92 REFSt As DIRECTOR 025386 B. MEXICO CITY 2962(1/0634 71) le ACCORDING TO LILYRIC AND LICALLA, LOCALLY HIRED PAINTERS HAVE BEEN OBSERVED AT MHHARSH INSTALLATION SINCE MONDAY 13 APRIL, PAINTING MAIN BUILDING. THERE HAS BEEN NO DELIVERY OF MATERIALS SUCH AS DESCIBED PARA 4 REF A. 2, FILE 201-854249. GP-1 SECRET SECRET
14-00000 ” TACHION Benge - aa PA At TCH A So PROCISSING ACTION SECRET MARKED FOR GADUING 1_XX _|ro porns ravatp GRLY QUALIFIED DELL OOM WOGd INDDaNG eT wevorue Chief, vH Division Chief, SB Division Reference; HMMA-38119, 18 November 1969! “PRIORITY SUMMARY 1. The LIEMPTY Project has thus far survived the absence from duty of its principal agent, Raymond H, GERENDE, as well as the threat to the security of the Project represented by GERENDE's marital problems, Bruce H, FERNALD hag been handling all Project personnel since early December 1969, when GERENDE was deactivated and placed on half-pay, No problems have resulted from this, other than @ delay in the receipt of photos (FERNALD ig unable to meet LIEMPTY personnel as frequently as GERENDE was), The security - threat will remain as long as GERENDS's estranged wife has it within her power to’@xpose GERENDE's RVROCK connection and the type of work he was engaged in, She has continually promised not to do this, and thus far she has kept her word, 2. The LIEMPTY product continues to be a valuable one for the Station, It continues to play an important CI role (particularly for LNERGO and LNREAD) but its greatest value, as far as the Station is concerned, is in the positive field. Two recent examples underline this: The early .(and thus: far only) debriefing of AEMIDRIFF was accomplished almost exclusively by showing her photos of all MHHARSH Exbassy personnel and getting from her a character sketch on each individual, These photos were all obtained by LILYRIC and LICALLA. Secondly, LIEMPTY observations (as opposed to Attachment: Reports u/s/e ~ “of - . wf ~ : ae yt Digtbituion; . an @ - C/WH w/att u/s/c ; cia! = C/SB wfatt u/s/c ef Wo caecece weeenneeenemard one essiansinowaie HMMA-3S760 25 March 1970 ~PASHCATION ——=*=*=*“‘CSC*WRSNGS VLE URE SECRET ‘ 50-6-74/9
CLASSIFICATION , DISPATCH SYMBOL ANU NUMBER CONTINUATION OF ‘ i OISPAFCH : SECRET | ____ HMMA-38700 photos) played an important role in our total coverage of AESEASICK . ‘| during the recent opérational activity undertaken against AESEKASICK, ~ In short, LIEMPTY remains a highly effective and highly useful ae ‘Support asset, whose product’ is obtained in order to be used operationally, not simply collected for the files, ‘ GERENDE 3, The GERENDE problem is unquestionably a serious one. We are forwarding under Separate cover copies of several memoranda prepared by. GERENDE, One outlines the history of his marital problems, another describes the current legal situation, and a ‘third outlines proposals for a-settlement, There is no hope of reconciliation, The Station's position with GERENDE from the start has been that he must agree to an amicable settlement with his wife in order to insuré that she. would not feel forced to take . Steps which would jeopardizé the security of Station operations, _* For this reason, the Station insisted from the beginning that any — | financial settlement with his wife would have to take into account the fact that he was receiving a certain salary from RVROCK, and that he could not fairly keep this salary out of the settlement on the grounds that his wife could make ao legal claim to that Salary. GERENDE's wife was made aware of our position on this, and she was grateful, even though stie realized that this arrangement was strictly informal, The Station felt that GERENDE could not be allowed to use his RVROCK salary AS A weapon in the dispute with his wife, because if he did, she could hardly be expected to refrain from exposing his connect ions, Indeed, events have shown that GERENDE's wife is a vindictive woman, and if it had not been clear to her that she, as well as GERENDE, would lose money if he loses his job, she might have blown the whistle long ago. GERENDE, for his part, would have preferred to keep his RVROCK Salary entirely out of the picture. Eventually, however, he agreed that the Station position was fair, and he said he would conform. 4, The attached memoranda from GERENDE are, in the Station's opinion, basically fair accounts, In the beginning, the Station Was inclined to give GERENDE's wife (LISMPTY-19) tke benefit of the doubt, largely because her description of GERENDE's character weaknesses came -as no surprise (particularly his tendeacy to procrastinate, even when his marriage was at stake). Early in the conflict, LIEMPTY-19 contacted RIZZUTO and asked point blank what she could tell her lawyer about GERENDE's salary. She was told she could not mention the RYROCK portion undér any circumstances, and that if she told anyone-that GERENDE had any connection with LNPURE, the connection would be denied and GERENDE would be -y terminated. She appeared to accept this gracefully, even though it meant she would have to scale her support demands down to the level of GERENDE's overt income (GERENDE's monthly salary from RVROCK was over 7,000 pesos; he earned an additional 4 to 5,000 pesos teaching English, and he has since rented their house, for which he is receiving slightly less than 7,000 pesos monthly), . Subsequently, LIEMPTY-19 was told that the Station would see to it that as long as GERENDE continued to receive an RVROCK salary, he would give her the Same proportion of this salary that the courts determined should be paid from his overt income, This, of course . : a ne one ’ was strictly an informal arrangement, one which would stop the minut ERENDE stopped receiving a salary. er, aS LIEMPTY-~19's oSition hardened and her vindYetiveéness began to rule her actions, LIEMPTY=-19 was reminded by the Station that the longer it took for 40 amicable solution to be reached, the greater was the chance  ithat GERENDE would lose his job. If she persisted in having him “arrested (which she succeeded in doing twice), his job would be jeopardized, While she continued to repeat sweetly that she had no intention of- causing his termination, and had never breathed a word to’a soul about his RVROCK affiliation, her attitude was in fact jeopardizing his job and if he lost his job, she and the , children, as well as GERENDE, would lose income. Her attitude is : 7 CLASSIFICATION To PAGE NO. FORM . | i asa S3a USE PREVIOUS EDITION. : ; 740) SECRET : CONTINUED 2
Be es _ DISPATCH BYMBCL AND NUMBER CAASSIFICATION CONTINUATION OF I DISPATCH jo SECRET _MMMA=38700. doubly disappointing in view of the fact that as she became more and more unreasonable, GERENDE was moving in the othor direction, 5. The outcome can still not be predicted. As can be seen from GERENDE's memos, the two sides are still far apart on a number of points, including specifically: money. LILMPTY-19 insists on 1 10,000 pesos per month. GHRENDE is willing ‘to pay 5,000, GERENDE ig currently on half-pay, which means that his total (all source) monthly income is around 14,000 pesos, From this, he would not only ‘have. to pay the amount which is finally agreed upon, he must also cont true payments of 2500 pesos per month to LIEMPTY-19's father .. (paying off a loan obtained. to build their house), The complicating “factor is. the uncertainly of GERENDE's future with RVROCK, The Station has ridintained for some time that it is impossible to continue to pay GERENDE his full salary solely torun the LICALLA and LILYRIC basehousges, Now that FERNALD has absorbed this duty with only small inconvenience. and some loss of timeliness, it makes even lgss sense te put GERENDE to work only to do this, GERENDE , has long been aware of the Station's thinking in this regard, and prior to the current pergonal crisis he had been told that he would have to work harder at a greater variety of tasks in order to retain hie position. As Headquarters is aware, he had been given additional tasks, and, as reported in reference, he had begun to respond very well. There has never been any question of GERENDE's ability. As we have previously stated, he is personable, intelligent, bilingual and binational, and has had good training and experienca in certain fields, On the other hand, there has long been doubt about his seriousness of purpose, his’ initiative, and his ambition, The “reversal of roles" which he describes in one of the attached ---- memos, which took place when he was confined to his home as an . LP keeper, did more than cause domestic problems -- it apparently deprived him of the discipline of a daily job. His well-deserved reputation for being lazy was earned years ago, 6. The. question which must be answered is whether or not to terminate GERENDE. He can be useful to the Station, but the tation has learned to get along without hin, What are the security hazards involved? The general range of his knowledge is described in paragraph 5 of reference, If all of this were blown, the loss to the Station, particularly in terms of support operations against the MHHARSH target, would be considerable, The Station does not believe that GERENDE would deliberately expose any of this, but it is impossible to predict what LIEMPTY-~19 might do, particularly since she would feel that she had nothing to lose, having already lost a possible source of income through the termination, GERENDE's termination bonus would probably be in the neighborhood of ten thousand dollars, Presumably LIEMPTY-19 is aware of the fact that he would get such a bonus, although the Station has never discussed this with her and the possible division of such a bonus between the two of them has never been mentioned, LICALLA 7. The LICALLA basehouse continues to function without changes, except for the fact that Bruce H. FERNALD has been meeting LIEMPTY-9 since 9 December 1969, Brief meetings with LIEMPTY-9 are held once a week at pre-arranged times and places (weil away from the MHHARSH area), Occasionally special meetings are called, by phone, by FERNALD, if special coverage is desired (as in the AESEASICK case, for example). There have been no problems, operational or personal, involving the baseharse or LIEMPTY-9 during the reporting period, LIEMPTY-9 provided 1,728 photographs during the reporting period, and in addition to his regular reporting on observed activities of MHHARSH personnel, he provided special coverage as requested, This "special coverage" consists of his observations of a selected individual == who does he spend his time with, how is he behaving, when Was be present (or absent), etc. LIEMPTY~9 spends over 40 ‘ en erp | " CLASSIFICATION FORM | 568 53a USE PREVIOUS EDITION. Ss E c R E Mi | CONTINUED be  SC*SCARG EG