(ASSET) (LIHUFF), DEVELOPMENT AND PLANS, 50-124-28/1
Originator: CIA
Document date: 01/01/1963
Document type: PAPER - TEXTUAL DOCUMENT

## Page 1

104-10218-10044 50

# 2023 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

MATERIAL, CEVIRGED AT CO: MADQUAPTERS PY

HOUSE SELECT COMMITE OH ASSASGINATIOUS STAFE MOTTS

FILE TITLE/NICIBEP./VOLU!II::

ADACETONE (LIHUFF) (eVOL)

Derelipment and Plans

50 - 124-28/1

INCLUSIVE

DATES: _ 10 DeC 1962- 28 OCt 1971

CUSTODIAL UNIT/LOCATION: CI/EXO

ROO": 2.D11

DELETIONS, TF•AVY:_

-Cre Document

DATE

PECEIVED RETURNED

REVIEWED BY

(PRINT BIE)

SIGNATURE OF

REVIBITIG CEFICIAL

NOT REVIEWED EK HECA

2227167271

This is in response to a request by the HSCA staff members to

review LICHANT-l's production. According to our records, LICHANT-1

was included under the KDACETONE (formerly LIHUFF) project; and, as

in the case of LICOOKY-1, no sepagate production folder exists.

Attached is the LTHUFF project.

UFF

and

-50127-281

Plans

---

## Page 2

4S1S Mexico City

Message No 40

10 December 1962

"CONFIDENTIAL"

SuBJ: Activities of Student Affairs

Officer; Activities of Various

student groups

---

## Page 3

14-00000

SECRET

WHEN FALED DO

FROM: (Headquarters compoR...r)

WH/l Mexico

TO

SUBJECT AND PROJECT FILE REQUEST

AND FIELD NOTIFICATION OF ACTION

IP /AN

1O

: (Station/Bose)

FROM: (Division)

Chief of Station, Mexico City

Chief, Western Hemisphere Division

INFORMATION FOR REQUESTERS

COMPLETE ITEMS I THROUGH 12

ITEM 1O-ENTER OLD TITLE PHES AMENDING A TITLE. CITE

ANY FILES.

SUCH AS 201 OR PAQIECT FILES THAT ARE RE.

ITEM 3-ALL FILE

TITLES MUST SE STERILE SINCE THEY WILL

LATED TO THE FILE COVERED BY THIS REQUEST ITEM 10 MAY

APPEAR ON THE FIELD COPIES AND ON MACHINE LISTS

ALSO BE USED TO GIVE REASOYS FOR THE ACTION BEING RE.

ITEM 5-ALL REMARKS MUST BE STERILE

QUESTEO, TO IDENTIFY THE TYPE IE MATERIAL TO BE PLACED

IN A FILE OR TO MAKE OTHER EXPLANATORY REMARKS.

ITEM 7 AND 8- USE FIRST THREE LETTERS OF DISPATCH SYM-

BOLS FOR

FIELD

STATIONS

AND LIST HEADQUARTERS ELE.

MENTS ACCORDING TO ESTABLISHED NUMERiC CODES.

INFORMATION CONCERNING FILE

TYPE OF FILE

SUBJECT

PROJECT

COUNTAr NUMBER

=50

CODE (FILE NUMEER

CATEGORY NUMBER

124

ISPECIFIC SUBJEGT NUMBER

-

28/1

5 FILE TITLE (SPECIFIC SUBJECTI PROJECTS LIBITED TO 15 SPACEST

KDACETONE

ACTION REQUIRED

ANALYSIS ACTION

OPEN FILE

1X CLOSE FILE INDICATE DISPOSITIONI

AMEND FILE TITLE

REOPEN

E REMARKS (FOR FIELD DISTRIBUTIONI

X

RETAIN

DISPOSITIES

DESTRUCTION RICONLENDED

THRU IDATE:

Stra disa

7 INTERESTEO STATIONS PROJECTS ONLYI

& INTERESTED HEADQUARTERS DESA: LIST ACTION DESK FIRSTT

HMM

50

g.

FILES ACTION

HOLD IN

CS FILES

RESTRICTED

UNRESTRICTED

SERDARE POQUESANE

CHARGE PERMANENTLY TO

'OFFICER & DESKI

10. COMMENTS (INCLUDE SPECIAL HEADQUARTERS ROUTING INSTRUCTIONSI

11.

ENDORSEMENT

SIGNATURE OF BRANCHIDESK R.O.

his Blate Smitt 115816

FORM

12-63

28 cal

71

OBSOLETE PREVIOUS

812

IFG. 2 - 64

112

COORDINATION

SIGHATURE OF BRANCH/DESK R. O

THEY APPLICABLEI

50

SECRET

13.

RID APPROVAL

REQUEST AFRAGED BY

CODE (FILEI NUMBER

Eila Brimen

124

38

28/1

1-ES COPT

---

## Page 4

14-00000

.._S-E-C-R-E-T...

DATE OR

CHYPTONYM CHANGE - 20/04/71

KNACETONE

FORMER CRYPTONY - LIHUFF

CRYPTONYM CHANGE AUTHORIZED BY - ARMSTRUNG

COMPONENT - RID/AN

PRO OR RID SECTION CHIEFI

_CABLE OR DOCUMENT REFERENCE PFROM ITEM 10. UF FORM 8121 - HMMS -71.30

N-0-9-1-C-5

THIS IS AN RIO NOTICE OF A CHANGE IN FILE

TITLE

CRYPTUNYM CAUSED BY

_COMPROMISE. IT

IS TO BE PLACED IN THE FILE iNDICATEO. AND

TO REMAIN THEREIN AS A PERMANENT OFFICIAL

_CS. RECORD.

S-E-C-R-E-T

FILE IN

050-124-028101

-19T7

?.

---

## Page 5

4-00000

DISPATCH

CUSSIFIU.IION

SECRET

10

Chief of Station, Mexico City

1470.

-"Chief, Western Healsphere DiviBioD

STeruination of LIBUFP Project

ACTION REQUIRED - REFIREATES

FROCESSINE ACTION

МАРКЕР ВОЗ ПОЕХНЕ

NO ADAINE ROUNCO

ORAT QUALIED DESK

CAN JUDGE LEDATING

MICROFAM

Project LIHurt was terminated effective 30 June 1970.

Norris #. DAMICONE

.....

Distribution:

Orlg &

1-

COS, Mexico City

CROSS REFERENCE 10

63 G0NY

DISPATCH SYMBOL ANT AULBER

HE#- 18041

CLASSIFICATION

SECRET

OFFICE

WH/1/FI/CI

OFFICE SYMBOL

DATE

DATE

28 AUG 1970

25 August 1970

HOS FILE HUMEER

50-6-28/1

, ORIGINATING

VESS

COORDINATING

4167

OFFICERS MAME

- Chrono

i - RI

BE

LESTED

FI

WALI

53

USE PREVIOUS EDITION.

OFFRE SYMBOL

* C/NH/1

DATE

126.kug

RELEASING

OFFICER'S SIGNATURE

John C.

Kacle, M. Aduad

irray

DISPATCH

---

## Page 6

4-00000

WH/I

PROJECT ITHUFP

ACTION

MEW PROJECT

AMENDMENT

REMEWAL

TERMINATION

EXTENSION

OTHER

APPROVING AUTHORITY

PERIOD OF APPROVAL

FROM

CONDITIONS OF APPROVAL

SECRET

PROJECT APPROVAL NOTIFICATION

Si Frer

DIVISION

MR

BRANCH

DEOK

Hssdico

CASE OFFICER

Al Falons

AUTHORIZATION

TOTAL AMOUNT APPROVED

Cidef, Ml Divlaion

_ то

EPAENCIA

Parafost torninatod elfootivo 30 Juns 1970.

→PROPRIETARY

→suBsrar

DOIRECT

AREA

EXTENSION

k267

FY

196

196

0235-2552

AMOUNT

SIGNATURE

MPS/BG

BINANCE

849 EDITIONYIOUS

.,.......... ..... .

(S1gned) E. M. Haras

DISTRIBUTION

BNISET

SECRET

--i. :.

DATE

19 AUG 1970

OFAIEER

SOU 1

MPS/86

2-MoiAs

---

## Page 7

14-00000

ORCANIZATIONAL

ELEMENT

AC/WH/1

C/WH/B&F

C/WH/SS

C/WH/FI

C/WH/Plans;

SECRET

(Then Fulled In)

CArPTONTH

PROJECT ACTION

LIHUFF

TYPE OF ACTION

(MEN PROJECT

APPROVAL

lAMENDMENT

no.

RENEWAL

FY 19

Fe/c

CA

Western Hemisphere Dision

FiFLO STATION

Mexico City

BRANCH

-DESK

One

ASE OFFI

EXTENSION

1 stone

TERMINATION

ROOM NO

3E05

Has.

TEL.

Ехт.

": -

1973

CONCURRENCES OF DIVISIONS

Chack m.

TYPED NAME fond dierseure)

Charles M. Bounds,

L. O. Healy

isuk,

Richard B. Wright

DATE

4 Aug 70

_ELACK

4167

DATES

62up! 6 Lug

Richard S. Welch

Robert B. Moore Lakets hoos

8-8-20

to beget to

11AU3 EIR 8/!

ME NO

ATTAINIO

When concurrence

CONCURRENCES OF OTHER COMPONENTS

flement

and Name

Below

Obenined by Originatine Element.)

LATES

MEMO

OUT

PERIOD

AUTHORITY

FORM 848 US1,184

5.89

APPROVAL

AMT

THIS ACTION

= 0.

Jee.

SECRET

19

19

TOTAL FUNDS AUTHORIZATIO

DATE

12 AUG 1970

(5)

2024

---

## Page 8

14-00000

SECRET

÷

.:'.

6 August 1970

MEMORANDUM FOR: Chief, Western Hemisphere Division

SUBJECT

: Termination of Project LIHUFF

It is requested that the LIHUFF Project be

terminated, effective 30 June 1970.

Project LIHUFF covered funds for one agent,

LIHUFF-1, a U.S. businessman resident

in Mexico City

served in World War II with U.s. military

intelligence (MIS/X). LIHUFF-l provided the Mexico

City Station with access into the right-wing political

groups and the American Chamber of Commerce in Mexico.

He also obtained Dunn and Bradstreet reports for the

Station and performed other tasks from time to time.

LIHUFF-1 was actually terminated effective

28 February 1970.

No funds were expended for the

termination,

as he was not given a termination payment.

He was paid his salary of $300 per month, plus social

up until the time he was

terminated.

security contributions, 1970 $2,528.41 of LIHUFF Project

During FY

funds were expended.

4.

There were no known problems or security

risks

in connection with the termination.

not obtained. LIHUFF-] was advised concerning his

social security benefits derived from his CIA employ-

ment and told to contact the Station should he have

Chacle M Saad

Charles M.

Bounds

Acting Chief, WH/1

SECRET

ExcaLs. 103 =0210816

t:06 80 19, 291

---

## Page 9

14-00000

DISPATCH

CUSSANCATION

SECRET

Chief of Station, Mexico City

DiFO.

FROM

Chief, UH D1v1810a

O LINUTE

ACTION REQUIRID - RIFERENGES

PROCESSING ACTION

MARKED FOR ENDIXIES

NO DIDENTAG MOUTHED

ONLY QUALITED DESK

CAN JUDGE INDEANG

LACROFILM

"HUrt has been approved for the perlod 1 July 1969

through 30 June 1970 12 the anount of $4,000, $400 of which

18 avallable for disbursement In the field. (93,600 1s

payrolled at Headquarters.

Anthony B. WELDRAKS

care incide is silent ou

Distribution:

Or15 & 1 - COS, Mexico City

OSS REFERENCE TO

Erthurt from automatie

499-311

GS COPT

RI

Chronof

AN Pil

AB X

CS COPY

DISPATCH STMBOL AXD HUSABER

HXXEY-17355

CLASSIFICATION

SECBET

DATE * 9 JUL 1903

24 July

1969

HOS FILE NUMBER

150-124-28/1

CRIGINATING

OFFICE

OPER Meeti

-TYPIS

WH/1/J. J. Barry/hw

COORDINATING

OFFAI SYMBOL

DATE

C/H/Bax 7/24/69

OFFICER'S MADE

lette Chart

EXT.

6954

Parain's;

WH/I

OFFICE SYMBOL

AC/WH!/1

DATE

2Y Like

RELEASING

OFFICER'S SIGNATURE

Ernest

hasterdands.

---

## Page 10

14-00000

SECRET

PROJECT APPRUVAL NOTIFICATION

PROJECT LIKUFY

ACTION

NEW PROJECT

AMENDMENT

REMEMAL

TERMINATION

EXTENSION

OTHER

[PROPRIETARY

DIRECT

AREA

DIVISION

BRANCH

DESK

APPROVING AUTHORITY

PERIOD OF APPROVAL

FROM I VIDE 2969

CONDITIONS OF APPROVAL

Chase, MH Div1890

- то -30-0013-2770

B8o200

CASE OFFICER

dola da Barry

AUTHORIZATION

TOTAL AMOUNT AppROVED

$ 21,000

COLANCIAL

SYMBOI

EXTENSION

695%

FY

190

195

0135-2,52

AMOUNT

811, 000

SIGNATURE

MPS/BE

DISTRIBUTION

OFPICER

_MPS/86

SECRET

---

## Page 11

4-00000

....

X

ORGANIZATIONAL

ELEMENT

AC/WH/1

C/WH/B&F

C/WH/SS

AC/WH/FI

WH/EXO

SECRET

(when Filled In)

PROUCET ACTION

DECT CRYPTSAYM

LI HUFF

TYPE OF

ACTION

X

FI/CI

CA

OTHER

KEY

PROJECT

DIVISIO

APPROVAL

Western Hemisphere Division

AMENDMENT

FIELD

STATION

NO.

Mexico City

RENEWAL

BRANCH

DESA

or 19& 70

One

CASE

OFFICER

DATE

EXTENSION

John J.

Barry

TERMIMATION

ROOM NO.

BUILDING

8 July 1969

3E04

Ext:

RED

Hqs.

9041 -BLeS

6954

CONCURRENCES OF DIVISIONS

MEMIT

C, TYPED NAME (and ejenasure

DATES

ATTACHED

IN

OUT

YES

Ernest J.

517/69 8/2/69

1/1

George R. Thompson/kull). Han

10 p.fos

David 1. Smock andstmeck

14 me

nones -

Donald C. Narelius Lucauce

11 4 JUL 1859 18 JUL 1989

CONCURRENCES OF

OTHER COMPONENTS

DATES

IN

- OUT

MENO

ATTACHED

NO

APPROVAL

AMT THIS ACTIDN

FROM

APPROVING AUTHORITY

1 July 1969 30 June 1970$

4,000.00

C/WHD

FORM

12-66 848 1011

SECRET

FY

TOTAL AMOUNT

196

19% 70 $

4,000.00

¡DATE

18 JUL 1569

{5)

---

## Page 12

14.00000

SEMEET

MEMORANDUM FOR:

Chief, Western Hemisphere Division

SUBJECT

Renewal of Project LIHUFF

1.

Renewal of Project LIHUFF in the amount of

$4,000 is requested for the period I July 1969 through

30 June 1970.

The Project was budgeted for $4,000 for

FY 1970 and funds are available within WH Division.

LIHUFF represents Mexico City Station's access

into right wing political elements and organizations in

Nexico,

and provides contact with the large and influ-

American business community there.

In addition,

his access to Dun and Bradstreet reports has also been ..

useful in carrying out checks on WOLADY citizens of

operational intcrest to the Station. During the project

year three field information reports were credited to

the Project, one of which was disseminated by Head-

quarters,

and some thirty-five background investigations

and file

traces were conducted by

the agent.

3.

In paragraph D "Effectiveness" of the attached:

renewal request it was noted,

"He (LIHUFF-1) also organ-

ized at the request of COS (who, in turn,

had been

requested by Headquarters) a public demonstration in

front of the Soviet Embassy in protest against the in-

vasion of Czechoslovakia."

A review

of the LITEMPO

Project reveals that LITEMPQ4 was paid $4,000.00 by the

Station to organize and rally as many students as possibie

in addition to the JURO planned demonstration in tront of

the Soviet Embassy, and to Headquarter's knowledge LIHUFF-

did not organize the student demonstration on behalf of th

4. The Desk feels that this Project should be reviewed

during the upcoming project year to determine whether it

should be continued.

....

Acting Chief, WH/1

S30.27

---

## Page 13

14-00000

-

SEGRET

11 July 1969

MEMORANDUM POR: DC/WH

SUBJECT

Renewal of Project LIHUFF

1. Project LIHUFE covers a singleton agent (a U.s.

citizen) who has been managed directly by the COS, Mexico

City, and who has worked for WHID for nore than twenty years,

beginning in Panama and continuing in Mexico. LIHUFF-1 pro

vides the Station access to right-wing political elements and

contact with the American business community in Mexico City

(he is executive director of the American businessman's

association).

2. The project provided three disseminations in Fiscal

Year 1969, and it is deened unlikely that it will ever be a

source of effective and meaningful intelligence.

3. WH/FI suggests that LIHUFF-1 be considered for one or

several specific support tasks, which represent a continuing

burden for Station lexico City, and that he no longer be con-

sidered as a source of intelligence.

no

4. If lt is ascertained that he can perform/support

task(s), we advise that the project be terminated. In the

meantine, we recommend approval in the amount of $4,000 for

Fiscal Year 1970.

1

(Mr. Smock's note: "I believe that

we should take a hard leok, at this

RAR

CC: NH/1

$S92ET

David L. Smock

AC/WH/FI

Esid

---

## Page 14

14-00000

DISPATCH

Chief, WH Division

CLASSIFICATION

SECRET

INFO.

FROM

SUBsta

Chief of Station, Mexico City d

D LIHUFF Project Renewal

ACTION REQUIRED - REFERÍNCES

PROCESSING ACTION

MARKED FOR INDEXING

HO EIDEXING REQUIRED

OMLY QUALIFIED DESK

¡CAN SUDGE INDEXINE

KICKOFIA

Reference: HMMW-17191, 2 April 1969

Forwarded by split transmission is the LIHUFF Project

Renewal Request for the period 1 July 1969 through 30 June

1970 for a total of U.S.$4,000.00.

éon C. Fúitio

for/Willard C. CURTIS

Attachments:

Project Renewal Request

- Left Side - Herewith

• Project Renewal Request

- Right Side - Under Separate Cover

=

1 att:

CROSS REFERENCE TO

ES COPY

DSPATON SYMBOL AND NUMBER

HMMA - 37098

CLASSIFICATION

SECRET

DATE

8 May 1969.

MOS FILL, MULABER

1150-124-28/1

---

## Page 15

14.00000

...

:."-

SET

REQUEST FOR PROJECT RENEWAL

*: *-970

-00

PROJECT — LIHUFF

1.

STATION Mexico City

CHIEF OF STATION

Milandlust

•во підбо сд

FERMAFICO MU COLE PREEZRASSIDA

IO FALO CISSELIMATION

CS COPT

CS COPY

s/ odt: 1

C.SRET

50-124-2511

Fint?

---

## Page 16

14-00000

• *-7

- AT

" REQUEST FOR RENEWAL

PROJECT LIHUFF

A.

CURRENT OBJECTIVES

The objective of this project is to provide support for

a singleton contract agent, LIHUFF-l, who is the Executive

Director of the most important organization of WOLADI

also continues to have access to

•ight-wing political elements and organizations in Mexico.

a right-wing student group (principally al

the Universidad Nacional Autonoma de Mexico, UNAM).

B. CHANGES

1. Operational Mechanism

There have been no changes in this respect since the

previous project renewal was submitted.

2.

Agents

The only agent to be supported by this project for the

coming year is LIHUFF-I.

C.

INTELLIGENCE PRODUCTION

1.

Three disseminated reports were credited to this project

during FY 1969:

* HMM-11890 "University Rector's Conviction that U. S.

Promoted Student Riots."

HMM-12003 "Views of Minister of Industry and Commerce

on Forthcoming Visit of Nelson Rockefeller."

HMM-12008 "Views of Minister of Industry and Commerce

on Government Control of Radio and Television."

-. 17.

161154

=200 lod

:.

SECRET

---

## Page 17

14-00000

-i-"

This agent is used as a source for background, opera-

tional and investigative data. For that reason

it does not

produce a sufficient amount of positive intelligence to justify

its existence for that purpose. Its real value is the

availability of this agent and

his contacts to the Chief of

station, Mexico, for a

current reading on right-wing political

activities and personalities.

He is also a primary investiga-

tive source for information on WOLADY citizens of operational

interest to the Station.

This agent has access to all reports

produced by Dunn & Bradstreet in Mexico and can have investiga-

tions conducted by them.

D. EFFECTIVENESS

vuring

with details on a proposed

Ise pro proposed new federal Proor law densch was

subsequently passed) and an analysis on how this new law would

affect foreign investors or companies.

The agent also kept the

Chief of Station, Mexico,

advised of right-wing political

student agitation.

He also organized at the

request of COs (who

in turn, had been requested by Headquarters)

a public demonstration in front of the Soviet Embassy in protest

against the invasion of Czechoslovakia.

LIHUFF-I conducted

about thirty-five background investigations and file traces for

the Station.

E. PROBLEMS

security or cover.

This project has presented the Station with no problems of

F. LIAISON

This project involves no liaison relationship.

G. INTERAGENCY COORDINATION

This project involves no interagency coordination.

FARFREED DI SPLIT TRIRLISSIRE

H. PLANS

NO FRELS DISSENAEATIEH

Station Mexico

support agent and informato continue to use LIHUFF-l as a

on activities of right-wing

- grati

Lad the is are its lose

---

## Page 18

4-00000

-3-..

political minority groups and for investigative and background

information on persons of operational interest.

The Station

will also use LIHUFF-1, when so requested by Headquarters, to

organize public demonstrations

such as the one mentioned in

paragraph

D above.

I. FUNDS

LIHUFF-1 Salary

FY 1969

$ 3,600

FY 1970

$ 3,600

Social Security Con-

tribution

$14.40/month

Operational Expenses

3.

ANNEX

Total

175

225

$ 4,000

175

225

$ 4,000

None

K. EMERGENCY CONDITIONS

There has been no change since the original emergency

meeting conditions were reported.

FY 1971

$ 3,600

175

225

$ 4,000

SECRET

• ::::

!

it dide in i means.

---

## Page 19

14-00000

DISPATCH

Chlet of Statior, Hextco Clty

QLASSANCATINCA

8 BCRET

тю.

FROM

PROCESSING ATTIT

MARKED FOR BOOKIE

HO KNOCKING REQUITEO

ONLY QUNITTED DESE

CAN NOCE DIDNTONE

Chles, Hestern Hemtaphere Divlalas

Reference: Book Dispatch 6769, 25 Fovember 1968

This is a routine reminder that the LIHUFF Project

Renewal Request 1s due at Headquarters 12 June 1969:

Norris U.

DAMICORE

CROSS REFERENCE TO

Distribution:

Orig. & 1 - COS, Mexico City

GS COPY

DISPATCH SYMBOL AND NUMBER

KM:W-17191

CASSIFICADIONI

SECRET

OFFICE

WH/1

OFFICER

Al Ma Morte

OFFICE SYMBOL

DATE

COPY

Distribution:

RI

= 1

CHRONO - 1

JARATIS

AY. PW

AB X

P3

DAJE

8 APR 1355

2 April 1969

HOS FILE MUMBER

150-124-28/1

ORIGINATING

COORDIKATING

EXT.

6954

OFFICER'S MAME

OFFICE SYMBOL

С/WH/1

DATE

4/3/69

1431

RELEASING

ONFICERS SUCHATURE

W.

J. Kaufnan

---

## Page 20

4-00000

DISPATCH

CLASSAICAIANS

SEC BET

PROCESSING ACTION

MARKED FOR INDEXING

Chief of Station, Mexico CIty

INFO.

NO INDEXUES POURED

ONLY QUALTIED DESK

COM JUDGE DADÉXIAO

FROM

Chief, Hestern Hemisphere D1v1810R

SUBICT

MICROFAM

C LI HUFF

ACTION REQUIRED - REFERENCES

LIHUFT has been approved for the period 1 July 1968

through 30 June 1969 in the amount of $4,000, $100 of which

Is avallable for disbursement in the field. ($3600 is payrolled

at Headquarters).

Tabria M. BACHAROY

Diatribution:

Orig. & 1 .

- COS, Mexico City

CROSS REFERENCE TO

AN PW

AB

RI

CHRONO

ION 53 USE PREVIOUS EDITION.

DISPATCH SYMBOL AND NUMBER

DATE

50-124-28/1

I AU's 1966

HNE-16521

CUSSIFICATION

22

HOS FLE NUMBER

July 1968

SECRET

50-124-28/1

OFFICE

WH/1

ORIGIKATING

N. Perkins/ Poredus

COORDINATING

EXT.

6954

OFFICE SYMBOL

HE :

DATE

7/10/02

LAED

OFFICER'S NAME

Seal. Calant

Hо16H.00

OFFICE SYMBOL

C/WH/1

RELEASING

DATE

OFFICERS SIGMATURE

26 JUL HOU

-1400

I / Kaufmar

DICPATCH

se sa tia a reset testion in.

---

## Page 21

14-00000

PROJECT

SECRET

PROJECT APPROVAL NOTIFICATION

FICI

I PROPRIETARY

[suBsior

AREA

ACTION

NEN PROJECT

AMENDMENT

RENEWAL

TERMINATION

EXTENSION

OTHER

APPROVING AUTHORITY

PERIOD OF APPROVAL

PROM & GREY 85S8

CONDITIONS OF APPROVAL

Chless 191 02118809

TO

so dent 2949

DIVISION

100

BRANCH

DESK

1255100

CASE OFFICER

Resay Persian

AUTHORIZATION

TOTAL AMOUNT APPROVED

FINANCIAL

CODE

IYMBOL

EXTENSION

6023

AMOUNT

84.000

196₴

196

9235-8459

antone.

SIGNATURE

MPS/DG

FINANCE

FORM 849 DE PREVIOUS

(StENed) E. 11. Euras

BUDSON

OISTRIBUTION

TOWER ON ONORT

SECRET

DATE

2 3 JUL 1368

OFfiCER

MPS/B6

18)

•releasin

ide i, con is also

---

## Page 22

4-00000

ORGANIZATIONAL

ELEMENT

C/WH/1

C/WH/B&F

C/WH/SS

C/WH/FI

WH/EXO

SECRET

(When Filled In)

POOLFCT ACTION

'ECT CRYPTONVA

LIHUFF

OTHER

TYPE CF ACTION

NET PROJECT

APFROVAL

AMENDMENT

но.

F1/C1

"'Western Hemisphere Division

SIELD STATIO

Mexico Citr

DESK

BRn241

rr 190

9

nAweY

On€

EXTENSION

CASE OFFICER

Nancy Perkins

DUILDING

1 July 68

TERMINATION

9041

6954

CONCURRENCES OF DIVISIOHS

TYPED NAME (ond aignaturo)

IN

DATES

OUT

H. J. Kaufman

Elliott C. Want falieat eWant 13

Thomas Polgar

Donald C. Mareliud Kir Akues 15 JUL EM

MEMO

ATTACHED

YES

NO

IF gudes

$1.

I Jul 68

APPROVING AUTHORITY

C/WHD

FORM

TRN 848 dlO PAENIOUS

APPROVAL

PERIO0

AMT THIS ACT104

"º30 June 69

1$4,000

L kuanin

Broe

SECRET

FY

196

1969

TOTAL AMOUNT

$

$ 4,000

DATE

18/7/68

188

-!...

1t.,;

CONCURRENCES OF OTHER COMPONENTS

DATES

IN

OUT

ME.IC

ATTACHES

YES

NO

---

## Page 23

14-00000

SECRET

-.

9 July 1968

MEMORANDUM FOR:

C/WHD

SUBJECT

Project LIHUFF Renewal

1. This covers a singleton asset (LIHUFP-I) who is

managed by COS, Mexico Station, and who serves as a general

utility agent for the COs.

2. Reporting 1a deficient.

3. This appears to ke a bread and butter typa project. -

It has been used successfully (e.g., during the YEVTUSHENXO

visit to Mexico), and FH/FI accedes to the recommendation to

renew.

,...

Thomas Polgar

C/WH/FI

EJL

C*:

WB/1

---

## Page 24

14-00000

SECRET

2 July 1968

MENORANDUM FOR: Chief, Western Hemisphere Division

SUBJECT:

Renewal of Project LIHUFF

Renewal of Project LIHUFF in the amount of $4,000

is requested for the period l July 1968 through 30 June

The project was

budgeted for $4,200 for FY 1969 and

funds are available within WH Division.

2. During the past year,

one progress report was

received,

in June 1968,

recapitulating the activities

reported

in the attached renewal request.

Although the

Station has made use of LIHUFF's relations with the right

wing student organization,

Evgeniy YEVTUSHENKO's visit to

MURO lexico this

in connection with

spring, the

use of MURO is being de-emphasized.

The main value of

LIHUFF/1, a long time collaborator

previously serving in

Panama and beginning in OSS days, is his availability to

service various requests which the COS may make of him

and to provide insight into the activities of the extreme

right wing of Mexican politics.

His access to Dun and

Bradstreet reports has also been useful.

W. J. Käufman

My kanpain

C/wH/1

Ga0W 1

SECRET

• -.

• po, 13?"

a ya amitive.

mo: 874795-7641-76

---

## Page 25

14-00000

DISPATCH

CUSSICATION

SECRET/KAPOK

10

Chief, WH Division

INFO.

FROM

Chief of Station, Mexico City

SUBACT

LIHUFF Project Renewal

ACTION REQUIRED - REFERENCES

REFERENCE: HANA-32306, 20 June 1968

PROCESSING ACTION

MARKED FOR INDEXING

XXX

NO INDEXING RIQUIRED

ONLY QUALIFIED DESK

CAN JUDGE INDEXING

(MICROFILM

Attached is the LIHUFF Project Renewal submitted for the period

1 July 1968 through 30 June 1969 for a total of US $4,000.00 all

of which will be spent in Fiscal Year 1969.

Millards Curts

•Willard C. CURTIS

Attachment:

Project Renewal Request

Left-hand side h/w

Right-hand side u.s.c.

Distribution:

Orig &? - C/WHD w/att

A - h/w

B - u.s.c.

S,C.ITTD LI RID,S)

Dured ZJUN

2ATT

CROSS REFERENCE TO

6:RE32Sa5 139

ES HAPY

DISPATCH SYMBOL AND NUMBER

HMMA - 34773

CLASSIFICATION

SECRET/KAPOK

DATE

50-124-28/

29 May 1968

HOS FILE NUMBER

50-124/28

-the Lied

---

## Page 26

14-00000

wait

- л-

...

SECRET/KAPOK

REQUEST FOR PROJECT RENEWAL

PROJECT

LIHUFF

CASE OFFICER

Dellari listen

STATION Mexico City

on a no le Custi

FERNARDED EE SPLIT TRANGHESSION

IN FELD CASZACTION

D ME

SECRET, RAPOK

50-124-2316

THATTE/L H1944- 34-773

....

---

## Page 27

4-00000

SECRET/KAPOK

REQUEST FOR RENEWAL

PROJECT LIHUFF

A.

CURRENT OBJECTIVES

The objective of this project is to provide support for a singleton

contract agent, LIHUFF-1,

who is the Executive Director of the most;

important organization of WOLADY businessmen in Mexico. He also

continues to have access to right-wing political elements and

organizations in dexico, one of which is a right-wing student

group

(principally at the Universidad Nacional Autonoma de Mexico -

UNARI) •

• B. CHANGES

1) Operational Mechanism

There have been no changes

in this respect since the previous

project renewal. was submitted.

2) Agents

The only agent to be supported by this project for the coming

year is LiHUFF-1.

C. INTELLIGENCE PRODUCTION

This agent is used as a source for background, operational and

Investigative data.

For that reason it does rot produce a suffi-

cient amount of positive intelligence to justify its existence

for that purpose.

It's real value is the availability of this

!

agent and his contacts to the Chief of Station, Mexico, for a

current reading on right-wing political activities and

He is also

personalities.

a primary investigative source for information on WOLADY

citizens of operational interest to the Station.

This agent has

access

all reports produced by Dunn & Bradstreet in Mexico and

can have investigations conducted by them.

For example, some forty

Dunn & Bradstreet reports have been obtained (via LIHUFF/1) on

persons and/or organizations of interest.

D.

EFFECTIVENESS

During the project year, the agent provided the Station with

:1.

....

1.

1-90+190159218-90101990

---

## Page 28

14-00000

=

• *.

SECRET/KAPOK

- 2 -

This agent kept the Chief of Station, Mexico, advised of right-

ving political activities and student participation in anti•

LNHARP demonstrations which occurred at least once each month

LIHUFF-1 conducted some twenty background investigations and file

traces for the Station, in addition to those cited in C above.

In March LINLUCK prevailed upon a Mexican book publisher to print

copies

of the LINLUCK open letter to Yevtushenko as well as

the

text of the telegram by Soviet intellectuals to the Consultative

anita

Conference of Communist Parties in Budapest asking for an end to

Soviet persecution of intellectuals.

The latter handbill was

illustrated with LINWCK pen and ink drawings of Sinyavsky and

Daniel behind barbed wire.

At the same time the Station produced

several thousand cartoon and text handbills of a beatnik Yevtu-

shenko dancing

into Mexico tossing flowers.

Turning a fold of the

handbill revealed a Russian officer striking off the nib of a

Soviet writer's pen

with his sword.

In a wet run in January LITEAR-

1 dirocted four

snall boys in the distribution of the cartoon hand-y

bill in the artists' district of Mexico where Station monitors

watched students and artists read and pocket the cartoon handbill.

The cartoon handbill was again distributed in the artists' district'

on the day of Yevtushenko's arrival.

The following day, when

Yevtushenko held his first recital at Mexico City's Chapultepec

agreer

Park, one of the handbills was distributed by LICOAX students;

while members of the "MURO" rightist student organization under

direction of LIHUFF quietly distributed the other two handbills.

Station officers verified that everyone in the audience held copies

E. PROBLEMS

This project has presented the Station with no problems of security

or cover

F. LIAISON

This project involves no liaison relationship.

SECRET/KAPOK

..*2

:

---

## Page 29

4-00000

SECRET/KAPOK

•3 -

G. INTER-AGENCY COORDINATION

This project involves no inter-agency coordination.

н.

PLANS

Station Mexico plans to continue to use LIHUFF-1 as a support

per to or to a state of brokerin tation on

I. FUNDS

I. The cost of the LIHUFF Project (paid by the Mexico Statior

exclusive of Headquarters costs) from 1 July 1967 through

31 May 1968 was approximately US $200.00 which does not

include the agent's salary of US $3,300 ($300 per month) -

advanced locally and T/Aed to Headquarters.

LIHUFF-1 salary

Operational Expenses

3,600

400

Total

4,000

the above represents what the Chief of Station, Mexico Cits

elieves i:

the minimum that will be required to keep a

working-level relationship with this agent and his organi-

zation.

J. ANNEX

None.

K. EMERGENCY CONDITIONS

There has been no change since the original emergency meeting

conditions were reported.

=.r..

SECRET/KAPOK

some pissa demons irapedo nea

-=..

---

## Page 30

14-00000

WISPATCH

CLASSISICATTiN

SECRET

іню.

Chief of Station, Mexico City

ном

Chief. Western Benisphere Division

SUBJECT

O Renewal of LIHUFY

ACTIOS REQUIRED - REFERENCES

PROCESSING ACTION

MARKED FOR BERXING

= NO ANDERRE ELOURED

ONLY QUALIFED DESA

CAN NOGI NOLONG

MCROFILM

We remind you that we would appreciate recelving the

LIBUFF renewal a month before the project termination date,

which is 30 June 1968.

1.1.B

Theresa HI. BACHARDY

li, wise

Distribution:

Orig. & 1 - COS, Mexico City

CROSS REFERENCE TO

DISPATCH SYMSOL AND NUMBER

F60W-16279

CLASSIFICATION

BECRET

OFFICE

J.WH/1

OFFICE STABOI

OFFICER

Perkins

DATE

1 Арг 1900 50-124-28/1

DATE

1

HOS FLE NUMBER

April

1968

50-124-28/1

ORIGINATNG

эт.

6954

I'C

COORDINATING

RI

CHRONO

ABSTRACT

- OFFICER'S MANNE

OFFICE SYMBOL

C/WH/1

FORM 53 USE PREVIOUS EDITION.

RELEASING

DATE

OFEICER'S SIGNATURE

1 Apr

68 Em 1/ Jeleda. J. Kaufman

1401

ПІСРАТЕН

---

## Page 31

14-00000

"Re LIHUTE DIP

MEMORANDUM FOR: MPS/BG/FI

SURJECT!

CA Aspecta: PIOjoCt LHUFS (E1)

Wa noso chas, desulta sho cut-asi (as Isadquartara bnajesancó)

•l CLA ÁUNde to INVEY antes groupe lo !965, abd sichough litue rachay

sa curtently pandad so lluff-l for opa and cuppori purprese 15:20 13:

P'Y 196?, $600 Erojocted 1or FY 1968), Cho Statjos 1e concaury te 119%

Ibin inrolene lady staron go..

queete and cuidanos lor apechic operationa, pelacipally sargeemond 25-

SiGne conouaiad ty MIURO, the militant arch-righesas 354 Cotraln19!

ELUdESE GIOUD AL LDO UNIVISIÓN JaCIOnal ALCONATIE dE MISICO (UNALA!.

2. CA/PEG queallone whethor the use end ancourageiont Mi iRO

los thede puerogao la constoran: with OD cojactives or USO Istescata In

Mintico, aron tough noot of the MURO actone duppord by us are diras-

1GÓ DE DON-UNAM Large:s

Ant encOuragemeal or EUEDOrE la MURO, i0?

mantover reacons, will heve che inevitable by ptoduce ot reesncalang sod

sulding us the arastigo and saduenco di Milito ca te UNaM rompues

reasie antitatical to tao objectaves al other sealor sad Enbacer sidorta

Ho apopociato the negi los a Station mullisant action losm 10r

We oliste, 3009401E

Chat the done range negativo elect us perpetuatng MURO curralabe she

tenticai ahora-panza ponciste lo bo derivod iron MitRo barraemost ace

Vo cannot thorefore endorde tala CA aspect ot

te LIHUFE DelosE sE presersai

51gned

onneth Y. Alllla

KENNETH Y, MALELAN

C!CA/PEC

Sert orig. to WH Div. with following nots: Bolsone this aboud have beer

addreosed to C/WHi wita a copy te MPS/BG.

It a segly lo rado to CA/PEG, #eulá

appreciale a copy of si lor MPS/BC project ille, Thank you, LEM

111:

never sow this te? cer ding LIsP/x DIR-ORET

ho prepase cenewce. "I

NiP. 1D JUre68

78-75

---

## Page 32

4-00000

DISPATCH

CLASSIFICATIDO

SECRET

Chief of Station, Mexico CIty

TO

UFO.

FROM

Chief, WH livision

....

SUBJECT

• ReDeval of LIHUTF

ACTION REQUIRED. REFERENCES

PROCESSING ACHION

MARNED FOR MADENINO

GO INDENTEE REQUIRED

ONLY QUALIFIED DESI

CAN JUDGE INDEXITS

MICAOFEM

Project LIllUff has been approved in the anount of

$4,200 for the perlod 1 July 1967 through 30 June 1988.

Theresa H. BACHARDY

Distribution:

2 - COS, Mexico City

CROSS REFERENCE TO

RI

Chrono

2 4 JUL 1954

50-124-281

DISPATCH SYMBOL AND NUMBER

HMNW-15646

DATE

21 July 1967

CLASSIFICATION

CacUp 1

Excheded from astraalic

SECRET

8078794-95 221

MOS FILE NUMBER

50-124-28/1

ORIGINATING

FFIC

WH / 1

OFFIGER

N. Perkins

TYPIST

sas

NPerkuis

EXT

6954

COORDINATING

OSTICE STEBOL

DATE

OFF KERS NAME

wit /1

:20b

БЕзТі

98

ABSTRACT

OFFICE SAHIBO

1r./1979/1

DATE

RELEASING

LOSER'ER'S SIGNATURE

W. J. Kaufman Freli

---

## Page 33

14-00000

SECRET

PROJECT APPROVAL NOTIFICATION

PROJECT

fiL NOTE T40'S38

→ PROPRIETARY

SUBSIDY

X DIRECT

AREA

LIHUFF

ACTION

NEW PROJECT

AMEMOMENT

RENEWAL

TERMNATION

BATEHHO

OTHER

APPROVING AUTHORITY

Chief, WH

PERIOD OF APPROVAL

FroM _1 Jul 67

CONDITIONE OF APPROVAL

DIVISION

WH

WH/1

T0_30 Jus 68

CASE OFFICER

N. Porkino

AUTHORIZATION

TOTAL AMOUNT APPROVED

4, 200

CODENCIAL

SYMBOL

EXTENSION

6954

FY

196 8

196

0735-2452

AMOUNT

524. 200

24 JUL 1S57

SIGNATURE

MPS/BG

DATE

since; die it. Bares

UDGI

VISIO

FORM 849 MOTTO VIOUS

DISTRIBUTION

DEFEATOR SUPPORT

SECRET

OFFICER

MPS/DG

63)

---

## Page 34

14-00000

SECRET

coran rillad 1a)

' S.

ORGANIZATIONAL

ELEVENT

C/WH/1

C/WH/B&F

C/WH/SS

C/WH/FI

WH/EXO

PROUCCT ACTION

.ECT CRYPTONYM

LIHUFF

TYPE OF ACTION

PROJECT

AVENEMENT

по.

BENENAL

•r 196 8

EXTENSION

TERMINATION

XI

Dietera Heispiere Division

FIELD STATION

Mexico City

BRANCH

DESK

One

CASE OFFICER

N. Perkins

ROOM NO.

BUILDING

3B4403

Hqs

CONCURRENCES OF DIVISIONS

TYPED NAME (and o

DATE

29 Jun 67

PED

BLACK

9041

6954

DATES

IN

OUT

W. J. Kaufman

Wiylle fman

George R. ThompsonAuch/aus

Thomas Polar Monten olen

Donald C. MarelsChutreli

6/3n

5 рід 1467

11 H1 6)

12 JUL IEST:Z7

MEMO

ATTACHED

YES

NO

CONCURRENCES OF OTHER COMPONENTS

DATES

IN

OUT

me40

ATTACHEC

YES !

No

APPROYAL

PERIOd

AMT THIS ACTION

1 July 1968"30 June 1968|34, 200.00

APPROVINE ALTMCRITY

C/WHD

18-се 848 ггітноnя

SECRET

FY

1968

196

TOTAL

AVOUNT

$ 4,200.00

DATE

17 jul 67

858

---

## Page 35

SECRET

MEMORANDUM TO: Chief, Western Hemisphere Division

SUBJECT

: Request for Renewal of Project LI HUFF

It is requested that Project LIHUFF be renewed

in the amount of $4,200.Ou for the period 1 July 1967

through 30 June 1968.

Funds are available in WH Division.

Project costs are estimated to be the same as last year.

2.

LIHUFF represents Mexico City Station's access

into right wing circles, and also provides contact and

rapport with the large and influential American business

community there. It will be observed from the attached

renewal request

that a considerable portion of the

project's accomplishment was along political action

Lines,

but it has nevertheless been decided to maintain

as an FI activity, Since the addition of the

investigative function to LIHUFF-l's mission balances

the project more heavily on the FI side.

There has been

no progress reporting since 16 November 1966, at which

time the station recounted the harrassing of

a Czech

official, the Soviet Embassy and the Chinese art exhibit.

infrequent reporting is explainable.

/ Па

J.

Kaufman

Chief, WH/1

SECRET

Exclated tea alcail:

COMDE5ASIE 888

insatirds

---

## Page 36

14-00000

DISPATCH

Chief/NED

QCSIFICATION

SECRET

PROCESSING ACTION

MARKED FOR MDEXIED

KO INDDAITS REQUIRED

ONLY QUALIFILD DESX

CAN JUDGE DEDEXERS

MICROFILM

BFQ

FROM

Chief of Station, Mexico City

SUBJECT

Project LINUPF Request for Reneke

ACTION REGUIRED, REFERENCES

Reference: HNMA-20237, dated 13 Way 1966.

Attached is the LIHUFF Project lieneval submitted for the

period 1 July 1957 through 30 June 1968 fur a total of

Us :4,200.00 all of which will be spent in Fiseal Yeer 1255.

Attackient:

uft-hand side n/

Rit-hand side u.s.c.

Distritution:

@ - Chief/WiD h/w & u.s.c.

NO FIELD DISSERIHATION

CROSS REFERENCE TO

CS COPY

DISPATCH STUBOL AND RUMBER

HN4-32306

CUSSIFICATION

SERBER

50-124-2811

DATE

20 June 1967

HOS FOLE NUMBER

50-124-23

1937999049

---

## Page 37

14.00000

REAUEST FOR PROJECT ROTSINE

PROJECT

LIHUFP

Hilard C. CUNI'IS

STATICHI

Mexico City

Hillard C. CIFTIS

FORWARBED BY SPLIT TRANSISSION

NO FIELD DISSEMINATICN

CS CUPY

50-124-2810

W4/ WATT. #/ Le 4141119-32306

.SEATT. A 2E MIRMA - 32306

mode...

anon ne.

---

## Page 38

4-00000

REUEST FOR REMENAL

PROJECT LINUE?

CURRET OBJECTIVES

• The oujective o. his projece is to provide support for a singleton

contract agent, LInurF-1 who is the Executive Director of tie nost

Inportant organization of Inerican businessmen in kexico. Fe also

continues to have access to right-wing volitical elecents erà organi-

zations in Mexico: and through these contacts, has access to ? right-

wing student grous (prineipally at the Universidad lacional firtonoma

de Mexico - UNA!).

3. CHANGES

1) Operational Wechanisa

The LIUFP Project was approses 18 June I966 for the period 1 July

1966 through 30 June 1907. LLiUEr-1, the contract azent Involvel,

has been a contact of the Mexico Station since 1950.

sefore that tige

he vas a contrect agent for station Parnme wher. he was in busiress in

that arca.

In lorenöer 1902 tre relationshi, vas fomalized into

contract status wits LIHUrF-l acting as a funding channel to 27 anti-

Comrunist rescarch group and richtist student group -eaded bj

LIHUF1-2, as well as handlira LICHAN-l and reporting on richt-wing

activities from other conservative ousiness sources. Subsidles to

action groups were discontinued via LIhUFF-l during 1965.

1966 LIHUFF-1 has been used as a support asset doing credit and other

type investigations with his overt position as cover.

Bradstreet listings and investigations are examples of the kind of

checks LINUFF-1 provides.

2) Agents

The only agent to be supported by this project for the coming year is

LIHUFF-1.

C. INTELLIGENCE PRODUCEION

the Mexico Statior makes no effor

to justify this project on the basis of positive intelligence dis-

seminations or the maber of dispatches or cables produced by it.

LIHUFF-1 meets regularly with ard is handled directly by Willar

c. CURTIS, Chief of station, Mexico. The agent is used to obtain

Information on activities of right-wing political groups in l'exico.

Much of this is marginal in comparison with activities of other

...--..--?

......

1pp7" 770

---

## Page 39

14-00000

-2.

political groups, nevertheless, the Ambassador dedends upon Station

Mexico for infornation on all political groups.

MTHUPF-1 1s the only

Station asset who circulates freely in these circles.

During the

past year, LIHUFF-l has conducted through his organization, investigations

and checks on firms and individuals connected with them. This type of

operational data is not availabie fron any other sources. LIHUFF-1 has

access to all reports produced by Durf & Bradstreet in Mexico; and can

have investigations initiated by then and others.

D. EXFECTTVENESS

Sore examples of the effectiveness of this project are:

1) During the past year, LIHUFP-1 provided guidance to a right-wing

action group which launched a press attack against the Commercial

officer of the Czech Boassy (Subject of 201-204656) which resulted

in his PCS transfer fron Mexico.

2) In late Augusi 1966 LIIIUFF-1 arranged for a right-wing action

group to conduct a harrassment of a Chinese Comunist Art Exhibit at

the UNAM wnich resulted in the closinz of the exhibit. This action

was taken as a result of a personal request of the Chief LINPURE.

3) In October 1966 LIHUFF-1 arranged for a student action group to

conduct a denonstration in front of the Soviet imbassy on the loth

anniversary of the crushing of the hungarian rebellion. This resulted

in considerable press comment against the Soviets with plotographic

coverage of a casket and anti-soviet banners on the sidewall in front

of the Soviet Embassy.

4) Some investigations conducted by LIHUFP-1 through his firm were:

a) Electrosoldadura, S. A.

(of Interest to the Soviet

Lago Wenner 98, Mexico 17, D.P.

Case Officer)

b)

GSP Ingenieros Asociados

'enuel Maria Contreras 94-40

Mexico, D. F.

•) Basculos Mantro, S.A.

Xicotencatl 1]

Santa Clera, Edo, de Mexico

a) Barnices Aislantes, S. A.

Lic. Alfredo PORRAS

Ing. Ralph WIECANDT

Enrique OSORIO Robles

-led 4060057729

...

paya is: 1 sea te

---

## Page 40

14.00000

• -

.. ...

-3=0

E. PROELEMS

There have been no significant security, cover or control problems

with LIHUfF-1 during the project year.

F. LIAISON

This project involves no liaison relationship.

G. INTER-AGENCY COORDINATION

This project involves no Inter-agency coordination.

H. PLANS

Station Mexico plans to continue to use LIHUFF-l as a support agent

and informant on activities of right-wing political minority groups.

I. FUNDS

1. For the Past Perfod.

advanced locally and I/Aed to Headquarters.

2. During the Next Project Year.

following ranner:

LIHUFF-1 Salary

Operational Expenses

$3,600.00

600.00

Total

$4,200.00

The above represents what Chief of Station Mexico believes 1

tbe minimum that will be required to keep a working-level

relationship with this agent and his orgenization.

--=

and tent,...

i ...

---

## Page 41

4-00000

= 4-

ANNEX

None

EMERGENCY CONDITIONS

There has been no change since the last project reneval.

aaiainia.

---

## Page 42

4-00000

DISPATCH

CASSITICATICA

SECBET

10

Chief of Station, Mexico CIty

LAFO

FROM

Chief, WH Division

D1G) Renewal of Project LIHUPP

ACTION REDUIRED - REFERENCES

FaCCESSINGACION

PLASTIED FOR MODIRE

NO DOEXINE RECURRED

COET DEALEED DESA

CAS JUOGE INDEXISS

ECROFIN

LIHUFF expires on 30 June 1967.

We assume that you will want

to renew it, and ask that your renewal request reach us sy

According to our records there have been no reports

mostly of a cA

nature.

We may need strong and detailed

justification in order to secure approval for reneval.

TIlB

Theresa

¿ H. BUCHARDY

Distribution:

- Cos, Mexico City

CROSS REFERENCE TO

RI

Chrono

2229

ABSTRACT S

FORM E

LIHUFF

50-124-2811

1 3 APR 1967

DISPATCH SPLIBOL AND NUMBER

HHMW-15391

DATE

3 Apг11 1967

•SECRET

CULSSIFICITIOR

Estated trea Enteralis

62693558185%30

HOS FILE NUMBER

OFFICE

WH/1

OFFICER

N. Perkins

50-124-2821

ORIGINATING

TYPIST

sas

CSORCINATING

OFFICE SYMBOL

HIT DO?

BEGEIED

OFFICERS, BA

N611

1 80 64 21

CFFICE STUBOL

• C/WH/1

DATE

120)

RELEASING

OFFICER'S SIGNATURE

1a7.22

w. J. Kaurnan

Frea

EXT

6954

---

## Page 43

14-00000

=..

DISPATCH

Chief of Station, Mexico City

OUSSIFICATIOM

SECRET

PROCESSIRiG ACTION

MARCO POR MAXIS

DO NOCKING REGIORIO

MICROFILM

FROM

Chief, WH Division

SUBICT

LIHUFF Project Approval

ACTION REQUEED • REFLRONCES

Action Required: FYI

Reference

: HNMA-28937, 13 May 1966

Project LIHUFF was approved 18 June 1966 for $4,200 for the

period 1 July 1966 to 30 June 1967.

Nels: VISTINE

Distribution:

Orig & 1 - COS, Mexico City

50-124-2811

CROSS REFERENCE TO

RI/

Chrono

DISPATCH SYMBOL AND NUMBER

OS. COETS DATE

HAMI 14683

GLASSIFICATION

SECRET

June 1966

2:43E406

155 5p-121-28/1

ORIGINATING

TYPIST

OFFICE

WH/1/J

orance/mvh

COORDINATING

OFFICE SYMBOL

CATE

OFFICER'S MINE

EXT.

3654

AN X

133.

f8" 53

USE PREVIDU'S EDITIO'

..es...

RELEASING!

OFFICE STMSOL

C/WH/1

6/24

.40,

NICOATEL

---

## Page 44

14-00000

ORGANIZATIONAL

ELEMERT

SECRET

(ahen Filled In)

JECT CRYPTONYM

PRC-LUT ACTION

TYPE EF ACTION

AMEROMENT

NO.

REMENAL

ry 190 8-67

EXTENSION

TERMINATION

FI/CI

CA

LADHUFT

OTHER

Western Hemispbere

FIELD STATION

Mexico City

BRANCH

DESK

One

Mexico

CASE OFFICER

Charlotte

ROOM NO.

GUILDING

Bustoi

TEL.

EXT.

332

Ames

CONCURRENCIES OF DIVISION

DATE

T June 1966

RES

_BLACK

3654

TYPED NAME (and BIEnaRUTe)

DATE

DO ROT USE

THIE SPACE

C/W3/1

c/WE/B87

C/WH/SS

C/WH/FI

WHL EXO

He J. Kavinat

Robert Carter)

H. Ee Brooks

Thomas Polgar

Donald Hara 1ua Euro

18/6

CONCURRENCIES OF OTHER COMPONENTS

DATE

an.

MENS

ETSCHEO

VES TÃO

17:177

PERIOD

1 July 1966 1 30 June 1967

APPROVING AUTHORITY

Chiet, WH Division

ORM

PARTIOUS

= 85 848.40

APPROVAL

AMOUNT OF ACTION

FY

$ 4,200.00

TOTAL AMOUNT

$7.200.00

18 JUN 1266

SECRET

15)

---

## Page 45

400000

•11:.

SECRET

8 June 1966

MEMORAIIDUR FOR: Chief, WE DivIsiOn

SUBJECT

: LIHUFF Project Rezewal

I. It Is requested that the WHUFF Project be renewed fo

he period 1 July 1966 through 30 June 1957 Ic: $4,200. It wa

approved for 59,000 last year, reflecting a 50 per cent cut this

year in an effort to cut to a minim project obligations. ¡unde

are available in WH Division.

2. Liurt provides the Station's only agent with access to

4. WH/1 recommends reneval.

• J. Kaufman

SECRET

3:8

---

## Page 46

4-00000

L. SPATCH

Chief, WID

CASSIENCATION

SEMR:T/KAPOK

XX

PROCESSING ACTION

MARNTO FOR MOONIG

NO INDEXING KITCHED

ONLY QUALIFIED DESTI

CAN PUDGE LADONNA

MICROS ILM

INFO

FROM

Chief of Station, Mexico City

SUBJECT

Project LIHUFF Request for Renewal

ACTION REQUIRED. REFERENDES

Reference: HMMA-26353, dated 15 June 1965

Attached is the LIHUFF Project Reneval submitted for

the period 1 July 1966 through 30 June 1967 for e total of

US$ 4,200.00 all Of which will be spent in Fiscal Year 1967.

for/Willard C. CURTIS

Attachment: (split)

Left hand side h/w

Right hand side usc

Distribution:

3 - c/KHD w/att b/v & use

CROSS REFERENCE TO

IS COPY

DISPATCH STABCA RSO MUMBI

HM1A-25937

OISSIFICATI

SECRET. KAPOK

50-124-2811

DATE

13 May 1955

HOS FILE NUMBER

50 124-28

---

## Page 47

14-00000

ST

70%

REQUEST POR PROJECI RENEHAL

PROJECT_

LINUSE

W1llard C. Curti

STATION

Mexico City

Willard C. Curtis

=..

FORUMDED DE SPLIT IS SMISSION

NO FIELD DISSEMMATION.

S102307SX

L SIdEOFATTTO HMSA-28937

50-124-2811

RISIDEOEATT.GIHHMMA-28937

---

## Page 48

14-00000

..

REQUEST FOR RENERAL

PROJECT LIHUFF

A. CURRENT OBJECTIVES

me objective of this project 1s to provide for the operationa.

and administrative support for a high-level contrect ezent, LIHUFF-l

who has access and is a participant in the right-wing political

elements and organizations in Mexico; and through one of these con-

tacts, has access to a right-wing student group (principally at the

Universidad Nacional Autonoma de Mexico - UNAM).

B. CHANGIDS

1) Operational Mechanism

The LIHUFF Project was approved in September 1965 for the period

1 July 1965 through 30 June 1966.

LIhuFr/1, the singleton agent

Involvea, has been & contact of the Mexico station since 1950.

Before that time he was a contract agent for Station Panama when he

was in business in that area. In November 1962 the relationship las

formalized into contract status with LIHUPP/1 acting es a funding

channel to an anti-Couuunist research group and rightest student group

headed by LIHUFF/2, as well as handling LICHANT/1 and reporting on

right-wing activities from other conservative business sources.

activity tas

This

funded from Station OOA until 1 July 1965.

The LIlUFF

Project provided only for salary and operational expenses for LIUFP/1.

2) Agents

The only agent to be supported by this project for the coming year

1s LIHUFF/1.

No further subsidies are planned to LIfUfE/2.

LICHANI/1

was relieved of his position in the Ministry of Education and 1s not

included as a part of the LIHUFF Project.

However, LIHUFF/1 continues

in his private business capacity to solicit funds for the LIHUFF/2 group

and will continue to use them as sources for Inforation on right-wing

political activities.

C. INTELLIGENCE PRODUCTION

The Mexico Station makes no effort to justify this project on the basi

of positive intelligence disseminations. The information is primaril

for background.

It is often too sketchy for formal dissenination and is

!

'statio

---

## Page 49

4-00000

=.т.:)

-2-

frequently overtaken by public events before a dissemination c:n be

made.

LIHUFT/1 meets regularly with and is handled directly by

111lard C. Curtis, Chief of Station Mexico.

The agent is used to

btain information in response to Priority A.3. of the most recen

Related Mission Directive (HMI-4218, 27 July 1966). In addition tr

the RMD, Chief PESHDIG depends upon Station lexico for informatior

on all political groups.

LIHUFF/1 represents the only high-level

source trained and available who can circulate freely in Mexicar

concervative political circles and provide the Mexico Station with

information on their activities.

During the past project year

LINUFF/1 has provided the Station with the following general

categories of Information:

1)

Menoranda on leftists or Coumunist affiliation of members of

the Mexican intellectual and official community.

This is

to thomas on in worth or agra genot to evela /01.

2)

Information on Catholic Church activities In Mexico, Incluling

press clippings and periodic reports on the rightest student

action group, Movimiento Universitario Renovadora Orientacion

(MURO) active at the Universidad Necional Autonoma de Mexico

(UNAM), the Universities of Puebla, Guadajalara and Michoacan.

In 10,325, the only positive intelligence dissemination receive

from LIHUFF during the past project year was obtained frow th

MURO group at UNAM. In August 1965, Chief, PBSWING assed for

a complete report on "Los Tecos", a right-wing Catholic secret

society of which MURO is a student arm.

required by Chief, PEStNiS, to make a decision on the application

of the Universidad Autonoma de Guadalajera (U.A.G.) for certain

U.S. Goverrment-sponsored monetary grants of several hundred

thousand dollers to be used for development of this anti-

Cosmunist University which is competitive with the Communist

doninated University of Cuzcalajara.

From background data

previously supplied by LInuEr and otber sources, a detailed

report was made available to Chief, PBSWING.

3) Anti-Comunist publications from LIUFF/2's right-wing

research center and MURO student publications, all of which

are available to Headquarters and are of interest to the Station

for background.

D. EPPaCTIVENESS

This project provides the station with a window Into right-wing

---

## Page 50

14-00000

-3-

political activities. Also, as previously reported to Headquarters,

the groups influenced by LIUFF, i represent a potential for counter

balancing for leftist and Communist pressure groups.

One example

of this can be cited in action taken by student MURO leaders in August

1965. The Cuban Ambassador to Mexico, Joaquin PERILANDEZ Armas, set

about making speeches at Mexican (leftist) Universities*of-Tabasco,

Michoacan and Cuadalajara proposing Maxican-Cuban student exchanges.

MURO members Immediately set up a storm of public protest, deranding

that HEFNANDEZ Armas be declared persona non-grata for spreading

subversive propaganda and agitating on university campuses. This

caused FERNANDEZ, Armas to be a target for considerable unpleasant

press publicity.

Through LIHUFF/1, the Station Mexico can exploit

such incidents when it 16 to KUBARK's advantage to do so.

E. PROBTEMS

There have been no significant security, cover or control problem

with IIUFP/1 during the project yeer.

P. LIAISON

This project involves no liaison relationship.

G. INTER-AGENCY COORDINATION

This project imolves no Inter-agency coordination.

H. PLANS

tation Mexico plans to continue to use LIUrF/1 as an infommant and

nonitor of activities of right-wins polltical minority groups.

I. FUNDS

1. For the past period.

+5445238751

---

## Page 51

14-00000

: T. -

....:

• .

2. During the next project wear.

During the period 1 July 1965 through 30 June 1967, ar

estigated US$ 4,200.00 1s requested. It will be used in the

fallowing nanner:

LIHUER/1 Salary

Operational expenses

$3,600.00

600.00

.. Lols.

tom....

Total

$,200.00.

The above represents what Chief of Station Nexico belleves 18

the ninimm that will be required to keep a working-level

relationship with this very useful asent.

J. ANNEX

None.

K.

EMERGICY CONDITICIS

maintain contact by Chief of Station Mexico by telephone, well or

personal visits.

SER, 220K

aciditiane

---

## Page 52

DISPATCH

@Jai, al Etatica, 190100 tie

coon

стай, dtI1TS5is

MUSTAN LUTIN/LINDY

1410 Fi 17r.

LITerARES

139065488 50,558 " ІВЕ8 «ВСАТЧІ

184429433

Tin Tire it the jinital si person dicta

tie teart.

пот W!.

418a trees 49411y91re 15

• La regina un tis bania uf litalilgania cribleatico akrz.

risent: +819 1255008 551

1321949831909159 1

of Mla ine14icn to tie linists, de mill aljendinsa details er 8io 1e9im's

Dealerine talet in the in in troken losers that the 9tde100

1E SEA TOTELA, DE LLA-ISOON OP

22 pola 150s da pia barto at lo dierraria

ele parulera actinery w1sb ties chation,

malarie tulite due pos tling: etelant

Is Mira de Nila;

it 1geT in to dramational irregue.

coal that 1180 ilendid Asident 0i 1500 75

is twas ritatista

140451353157

2 - C0d, lazdoo C155

13 1:813 15%

18861-44420

657:1.1 1: 8.78

detina:

:: isa

1 8 APR 1966

10:198 82 dini.

Jun 127/3

*4-17+83/3

<2)2÷2041

roshi, citin

---

## Page 53

•CONTINUATION OF

DISPATCH

5569-20900

AN thE FALONA 200782.

the and le tarants "

..........-

---

## Page 54

14-00000

DISPATCH

CASSITICATION

SECRET

10

Chief of Station, Mexico City

INTO

FROM

Chief, WH Division

SUBICT

LIHUFF

ATIA periot. capron

AC REQ: FYI

HROCESSING ACTIO:

NO NOC:NE MOVIES

ONEY QUALIFIO DESA

CAN INOCE INODURS

Project LIHUFF was approved 1 September 1965 for

$9,000 for the pertod 1 July 1965 to 30 June 1966.

Ernest A. LUSBY

Distribution:

Orig. & 1, COS, Mexico City

invade a cares anitain.

CROSS REFERENCE TO

DISPATCH SYMBOL AND NUMBER

HHHW 13953

CS COPI

GLASSIFICATION

SECRET

WH/1

OFFLE SYMBOL

(ricismen)

50-124-28/1

DATE

09 SEP 1905

8 Septenber 1965

HQS FILE NUMBER

50-124-28/1

ORIGINATING

TYPIST

bo

COORDINATING

1 EXT.

M4523

RI

Chrono

DATE

OFFICER'S NANIE

256 13

05 6M .P2

Hit

KFC

• ON FICE STIBOL

C/WHD

DATE

RELFASING

1111 iam Y.

Broc

sate en

---

## Page 55

14-00000

PROJECT

LIHUPF

ACTION

NEM PROJECT

AMENDMENT

RENEMAL

TERMIMATION

EXTENSION

OTHER

APPROVING AUTHORITY

chief, iN

PERIOD OF APPROVAL

FROu —

CONDITIONS OF APPROVAL

1 JU2 65 10 30 J4 66

SECRET

PROJECT APPROVAL NOTIFICATION

CAeNeI

DIVISION

BRANCH

NH/1

DESK

Kosico

CASE OFFICER

C. Halliwall

AUTHORIZATION

TOTAL AMOUNT APPROVED

2,000

FINANCIAL

ODI

YMBOL

LJ PROPRIETARY

→sUBsIOr

DICIRECT

AREA

EXTENSION

9506

FY

196

6

196

6885-21458

AMOUHT

49,000

....

SIGNATURE

DDP/PE

(відес: 5. К. Haria

DISTRIBUTION

PISEN

SECRET

DATE

3 SEF 1965

OFAEER

FOFM 849 MSEPONYIOUS

-

(3)

Rtainctlkya!

. wvit à ite.

nuri vas nici isionint..

---

## Page 56

14-00000

SECRET

Caesa Pilled 10:

ORGANIZATIONAL

ELEMENT

C/HH/1

WH/B&F

WH/SS

C./WH/POA|

WE/EXO

PROJECT ACTION

CRYPTONTH

LIHUFF

TYPE OF ACTION

MEN PROJECT

APPROYAL

AMEMOMENT

но.

REMEMAL

ry 1966

DIVISION

Western Hemisphere

FIELD STATION

Mexico City

BRANCH

WH/1

RESK

EXTENSION

CASE OFFICE"

TERMIMATION

ROOM NO.

BUILDING

3B2607

Hdqs.

CONCURRENCIES OF DIVISION

TEL

EXT.

Mexico

DATE

21 July 1935

_BLACK

9325,

4506

TYPED NAME (and signature)

W. J. Kaufman

instantino

Robert Carter

sirck

DATE

21/2/63

W. E. Brooks

Gerard Droller

sorte

Paul Loeb

23 Fly es

1/2M/6

8/4/63

DO NOT USE

THIS SPACE

CONCURRENCIES OF OTHER COMPOMENTS

DATE

COPY

ню.

MEMO ATTACHED

YES NiO

PATE

PERIOD

FROM

1 July 65

APPROVING AUTHORITY

C/ WHD

FORM

7.84

848 1D1T10N3

Co1l71/671992

APPROVAL

AMOLAT OF ACTION

30 June 66

$9,000/

SIGNATURE

William

SECRET

FY

1906

196

TOTAL

AMOUNT

$ 9,000

DATE

9.1

H4:11

---

## Page 57

4-00000

SECRET

MEMORANDUM FOR: Chief, Western Hemisphere Division

SUBJECT

Renewal of Project LIHUFF

...

1.

Renewal is requested of the LIHUFF Project for the

period 1 July 1965 through 30 June 1966 for a total of

$9,000.

The LIHUFF Project was originally approved on 20

April 1965 for $7,500 for the period 1 January 1965 to

30 June 1965 as a CA Project.

It has been decided that

the direction of

the agent under this project and the

project objectives in general will be changed from CA to

FI, and therefore, The Operational Program for FY 1966

the renewal request is being submitted

as an FI Project.

included LIHUFF for $16,000. Funds are available in WH

Division.

2.

The Project objectives under CA were to support

and sustain MURO,

a national right-wing student movement,

through a long-established anti-communist front organiza-

tion in Mexico,

the Instituto de Investigaciones Sociales

• Economicas

(IISE) •

This support was terminated effective

30 June 1965 as it became apparent that the list was

financially capable of providing this support on its own

and MURO became more and more controversial and extrenely

militant on the far right.

Under the new project sub-

mitted by the Station, support will be provided to a U.s.

contract agent who has access to a wide variety of right-

wing political elements and organizations in Mexico.

The

project is responsive to Priority A3d and f of the RND.

3.

This project is the only project in the Mexico

Station which will cover rightist political activity ir

Mexico, emphasis in other projects and operations being

geared

against the extreme left and the present political

SEAT t Matter nao is cared under bla on prosect.

the PRI, which is slightly left of center.

the only other access to the Ministry of

SEGRET

---

## Page 58

4-00000

SEUICT

-2-

|:

4.

Headquarters and the Station are looking forward

to receiving better coverage on the rightist political

activity in Mexico.

WH/l is preparing guidelines and

requirements for this project which will reflect the needs

of the intelligence community.

These requirements will be

furnished the field so that proper utilization can be made

of LIHUFF-1 and his contacts and informants.

last fiscal year,

three reports were credited in full or

in part to LIHUFF-1.

Last year the Station submitted regular quarterly

progress reporting in addition to more detailed reporting

on certain activities.

The Station will be reminded to

provide a minimum of quarterly reporting during the next

6.

WH/1 recommends approval of the new LIHUFF Project

as it is set forth in the attached Station renewal request.

The delay in submission of the renewal request is that it

was just decided to change this Project to FI and cancel

out most of the CA aspects.

As a CA Project the renewal

request was not due at Headquarters until mid-July 1965.

W. J. Kaufman

Chief, WH/1

BiLl

---

## Page 59

14-00000

i.....

WH/POA 289-65

& August 1988

HEHOBANDUM FOR: DC/THD

SUBJECT

:

LIHUTY REnewal

'lector distincti

1.

Project LIHUTY has been acttve as a CA project for

a number of years.

It 1s now being renewed and submittod ag

an il projeet.

Its purpose and objective in to support a

singleton U.B, contract agent (LIAUTT-1) who has access to a

wide vartoty of right wing political elements and organias-

tions in Mexico in order to develop Inforation on this

political and social sector.

This effort 18 in consonance

with priority ald and 1 of the RiD and is the only one which

covers rightiat political activity lu lexico.

Since LIHUFP vas previously & CA project, there 15,

therefore, no data on which to judge past intelligence product

although three reports resulted in the past year.

Desk and the station are taking steps to prepare sultable

requirenents in leeping with LIHUll-l's access and the objoctives

of the project.

The reportiny received Iron the Station with regard te

the operational status

of the agent and project appears to

have been adequate in the past. There are no apparent security

or control problens.

4. $9,000 Mes been requested in support of the project

effective 1 July 1965.

Of this amount $5,400 1s narked for

and travel.

A study

of the detailed project outline leads to the conclusion that

this latter figure 18 sonewhat excessive when viewed againat

articipated

operational activity and in all Ilkellbood only

very little of it will be expended.

5. ProjoCt LIHUF? 1s recosmended for approval.

GERARD DROLLER

C/HE/POA

i ride an

1- lin /97:1 199

ine?

---

## Page 60

14-00000

SECRET

When Filled 10)

CRGANIZATIGNAL

ELEMENT

c/v7/1

• C/NE/ES

WH/Ch/PC

C/1:5/CA

NE, EXO

PROJECT CHIPTONTO

PROJECT ACTION

LIAUFZ

TYPE OF ACTION

NEW

PROJECT

APPROVAL

AMEMDMEMT

NO.

ARnELA

Er 196

DIUISION

restern denisphere

FILLO STATION

lezico

BRANCH

13/1

DESK

lexico

EXTENSION

TERMIMATION

BUILDING

3E2Ú57

Headguerters

CONCURRENCES OF DIVISION

TYPED NAIE (And signalure)

EXTENSION

4523

DATE

COPY "'ENCRANOLM ATTACHED

Nю.1

VES AC

DATE:

Robert Carter

3. E. B Sole

Dorsthy latthai

Seymour Bolten

Sanuel Felpern

256651

70r2k 291-65:

adlabata

2/3

i Pittici

.15

Zelteri

Flagen,

005r- 1955

CONCURRENCES OF OTHER COMPONENTS

CI/OPS

CCS

DC/CA

DDP/PG/CA

DDP/C-PG

FR0M

1 Jan 1965

APPROVING AUTHCAITY

F3RM

6-60 848

APPROVAL

PERIOD

то

TOTAL AMOLINT

30 Jane 1965

SIGNATURE

$7,500

SECRET

FY

ANOUNT

196 г $ 7,500

196

DATE

20 APR 1965

• 2.9 4.

---

## Page 61

14-00000

SECRET/KAPOK

MEMORANDUM FOR: Chief, Hestern Hemisphere DIvIiOn

SUBJECT

: Approval of Project LIHUFP

1. WH/1 requests approval of Project LIHUFF in the arount of

$7,500 for the second half of FY 1965.

The project has been pro-

granned in the anount of $20,000 for FY 1965 and these funds are

avallable in Wi.

FIRANCIAL, DAIA:

Fiscal Year

From Developmental Funds

1963

$ 5,000

1964

19,000

1965 (Second half)

7,500

2. This sew project is to provide some support and belp sus-

tain an Independent Mexican antl-conmunist group called the Instituto

de Investigaciones Sociales y Economicas.

The group fourded In 1953

has as its aln the spreading of the principles of free enterprise and

private initiative. LIHUFF 1s particularly active in the student field,

having orgenized a nation-wide, right-wing, active student organization

called Moviniento Unirersitario de Renovadora Orientacion (MO).

LIHUFF funds will be used to pay a salary to LIlUFF-1, an American

businessman with previous experience with CIA in Panama, and for spot

covert action activities such as the militant anti-cosmunist student

activities in the universitles and the placement of articles in the

press.

3. Effectiveness

During the developmentel period of this activity, the

following Indications of effectiveness have been reported:

E. The IISs continues to provide the Station wth e research

facility not othervise available.

Provided the Station with a valuable intellectual asset,

Manuel Calvillo Alorso, who 1a a source of &I on Tleht ving political

groups and who completed a book at Station request on the "Penetra-

tion of the lexican Educational Systen by Cormunists."

SECRET/KAPOK

.....

• 15056 как 44 10 т

iminar me rider-u

:

---

## Page 62

4-00000

SECRET/KAPOE

against Cormunian and pro-Castro groups at the lational Unitersity

(UNANS), and in the Universities of Puebla and Guadalajara.

MORO

takes najor credit for the ouster in past months of Communist rectors

Prom the Ualversities of Monterrey, Puebla, Guadalajare, and Morella;

MURO contnues to place anti-communist articles in the national sedia

öf interest to students and governsent leaders; MRO has carted out

successful demonstrations against the Soviet Bebassy.

E. MURO took an active part 1n cabling the Chilean govern-

eat pete ting the countet nature of the Latin duerican outa

F. LIHUFF-2 1s used by the Station for writing and plecing

certain types of strong anti-Sovlet articles in Excelsior and Bl

Universal.

G. LHUFF-2 acquired evidence of a large purchare of

American hospital supplies by two professors at UNAM for transbip-

4. Security

The IISE is funded througi a cut-out in such a way that CLA

Only LIHUFF-1, who 18 bet clendestinely

:

"....

progres report go tete proud ole has beca adequate, 51vo

W. J. Kaufraz

Chief, #a/1

F..i

-•-••--i

---

## Page 63

14-00000

SECRET/LAPOR

PROJECT LIEUF?

i..w..

A. Ident1 Ication

Mexico CIty, l'exico--Political action. See C. below for other cuintries

which may become Involved.

B. Objectives:

To support and sustain & national right ving student noverant, loviniento

Universitario de Renovadora Crientacion (MUnO), through a lonö-established

anti-corrunist front organization in lexico, the Instituto de Icrestigaciones

Sociales y Econonicas (IISE). Is raintain and influence significantly this

front group by obtaining a measure oi substential control througà this

continued fundire. To assist in raintaining e counterbalanciro i-luence

on the coumon party, PRI, against far leitist pressures through this

organization,

ILSE.

To accouplish the following objectires in the related

Mission Dirertive: Priority A. SI; Priority i. 3a, b, c.

C.

Background.

1.

The IISE was founded 13 1953 unier the auspices

Menican bankers,

Industrialists, au perchants to spread the priaciales of

free enterprice and private initiative.

Since its founding,

the group has

arranged a number of reetings and congresses designed to explore the

danger: of Comnunion, partichlarly in 1ts econonic aspects, asi arper-

rationalisn; it has organized the student group MURO; 1t has sablished bodies,

pamphlets, and news letters on Comunisa as well as the dongers of economic

socialisu;

1t nas enguged in considerable press placerent on rutters

rattero involving private initiative and the Cormunist threat; a? 1t has

accumulated a file o° basic data on events and individuals revolting about

Cormunisn thai would be difficult for any private Mexican grom to

duplicate.

2. In June 1950, LInusE-I visited the Babassy's Political Councelor

• and requested an Embassy contest vith LIHUrT-2's organization. Subsequently,

he Ambassador asked the COS to explore the possibility of giro fInancia

aclp

to the group headed ty Linurt-?.

In mid-August 1932 (125-2530 RIZAT)

Oliver G. GATEOND advised the lenico Station that the group had seen

receiving partial financial aid from a prouy of U.S. business sorporations

solicited by lr. lenry zollard, zon deceased, and that jenuguarters had

elso provided sore financial assistance through this channel. ter the

death of li. Folland, It was recesended that the funding be baailed

through the derico Station.

Spectically, this was to help paj Per the

publication 'Espejo," an econoric journal which strongly supports the free

enterprise system.

The Ambassador was consulted and be replied test he

thought LInUFF-2 was one of the lew economists In lexico figktiay Cormunisa.

++7+8912018994907444

---

## Page 64

14-00000

SECREE/MAICK

Ten a -3533 tet 15o, rohan 152o siould de done to support

3. A project was sabritted by the Station on 22 Narch 1963 (2214-20931),

but deadquarters on 12 JulE LEt DI2-53801) inicated the project had been

disapprored as subuittei and that intesù the Station luding should support

the student activity luri on a spot assistance basis.

Ints was done with

the U.S. business associates ei LInues-l's picking lp the cost of the

"Espejo"

ragazine, sere $1,200 ver conth.

The Station's assistance sirce

that tine has been confined to the parmant 0f LIauz-l's calar, 6500 per

noath) and the payment se 2500 per moatin to MuRo.

The Station, however,

retains access to the ?üll range of the LIUT mechanism and potential.

HURO, the militant stuient orgenization, 1: extrenely active in the

political action field, in tbe provinces as vell as 17 the capital.

IISE organisation has its offices in laxico Citi, with essociated offices in

Salvador and Cuaterale and working contacts in the provinces of Mexico and

In severel capital cities of Latin Anerica.

5. LIlUrE devotes It efforts to selling the free enterprise systen as

an economic way of life and in defending at every turn individual llberty or

¡reedon.

In Wexico this tipe of organization is rather unique, as the treud

in Mexico Is toward nore coverment Interrention.

The tiss also prepares

and sends out"

su provinaial neispapers editorials fcuturing anti-sommist

thenes.

In the last five jears the IIED has collected setenty losie-las?

binders filled with

editoriel clips authored in the IISa sarice.

organizaton also sponsors a training cource at which interested groups of

15 to 20 persons are Inuostrinated.

G. LINUPF-2, the Director of the IISE, has shom complete dedication to

the progra:.

The nembers of the organication, especially the students, have

demonstratei courage and competence in a variety si operations.

D. Operationel Assets.

1. Personnel.

1. LILUrT-1 is a la-jear-olà heriona businesstan tho acts as a

•ut-out and operational adviser to LIaura-2,

the director of the groug.

IHU:F-1 worked for CIA In Penana frou April 1947 until Horil 1949 when lo

returred to hexico. De vas in contact socially with rembers of the l'exico

Station and in November 1962 was hired for the above vors.

Training Has

not required sinca LIES-I has been in Intelligence work Iron bis service

with U.S. military intelligence durine inlI.

Ee was engaged to work for

U.S. military intelligence in l'exico until late 1562. Ee nows be is

working fer CIA. ENi-11040 of 25 October 1962 granted an CA fOr LIHURr-1.

-2-

SECRET/KAPOK

---

## Page 65

14-00000

LECTER/NATOR

2. LIaUFF-2 is e 47-jear-old Vaxican lazyer.

He is also & well-

knor econorist who directs an econshic research organization

in Nexice and

other latin herican countries.

He 1s set by LINFF-1. Wburr-2 protably

susteste that funds may sace to him tron the U. 5. Goverruent; however,

cover used 1s that the money is from primte business groups.

Ee was granted

an li on 26 Catober 1252.

2. Lechanisms.

1. The principal selleers of the Ild proud are listed in Appendix

1.

baring early 19s! lurs organised a strong and large chapter of Its

organization at the Univereity of Vera Cruz, uslada.

This University has

some 23,007 etudents anú a sizable cormuriat infiltration in Its stulest

rarice.

This makes 10ur universities nou in mich :U30 las chapters:

Universtand lacional Autorona de Mexico (Will), University o= Fuebla,

University of Juadalajara, uns the University of Vera Cruz. Three of Chece,

with the excoption of Guadalajara, are noted centeri ce cormunist activities.

2..

The IISE organication frecuently and regularly "akes press

placezenic in all of lenico City's leadliù rerepapera.

Its scitorial.

feature: are alin regularly accepted by provincial publications. Coneral

propagania

ans political actions of the arganication vill he influenced

and guided by the station.

•. The IISs editerial service cor provincial newspapers ha.

een used b: the Station.

C.

the lIst's international conrections, especially shie

associatel offices in dalrador and Cuaterala, m11l ba exploitei.

¿. The Station will continue to call on the IISS to fill

researcà needs.

e. samples of publication aná propagaria naterial are

attaches.

E.

Secunt by Braluation.

the IISE organization 1u tunied through a cut-out in such a caner

that cIa particioation is conceales.

Both LInst-1 and lurt -2 have been, to the diation's Inoleige, quits

decreet about their relationahi?.

In view of the rature of the IISE, there

has been as curfosir about the source of lunis contributed by the station.

234

-3-

SSURET/KAFCk

r....

•..4oo.

dude dronto tea

---

## Page 66

14-00000

SECTET/LAPOR

coordiration.

Eroup financially. Also, the operational use of LIFET-l was cleared with

U.S. nilltary Intelligerce wher it was leerned that they also had an

interest In using bin in clandestine operations. They are not using him

at the precent time.

2.

Pelationsa12 to Other Irojects

a. LICLAX: Both preects LICCAS and bURd are operating at lail, e

Universiti cl uprards of 80,000 students.

So far there have been no basic

problems of conflict since lUFO is working the Catholic side of the street

While LICON works on the so-callel "independents," and there 1s still

plenty of rom for both to operate.

In this connection, it should be noted

that a great deal of MuRo student efsort is devoted to unfversities outside

Lexico City.

b. LIIFEN: This project Is concerned with a nass propaganda

approach to Conunisy In Kenico. It 1s headed uy a group of businessmen

Enown

as the Cormittee of illne.

The only relationshi? betveen LINJa? and

LISIREN 1s In the fact that four ci the neubers of the Connittee o° Mine

ere also nabers of LINUtE's, 26-=a1 "Soard of Directors."

This ines not

recescarily Icon an Intcrlocking

directorate betreen the two projects since,

as in many sinilar activities in the U.E., Indivizuals interested in

civic or outside activities of this nature are freguently tapped to serve

in multiple sosigments.

LILISP!C:

Since LILISP/C is a lational Student Organicatice

stressing student affairs in the interior of Mexico, obviously LIar and

LILISP/C are working in the sane gereral sield in mirersities cutside

Mexico City.

However, in there iversities in thick Laure 1s concentratiss

Its efforts, this can

be a complementari reiationship sinca LISUE can

work in nuch nore depth in these wiversities than can LILISP/C end can

affiliate its groups to the LiSa/C ¿ational Studeni Confederation ihich

Is the only one now generally recogizes in lexico.

stute Greeteratto satlously can only spend very liniteà tire on any

•ninet da.

G. 1. Costs.

It is requested that the folling estimates be approved for use in the

LIHurr project for the period 1 January 1955 through 30 June 1955.

JaUNT -1 Salar:

'Espejo'

1150 Student Organization

2764

$ 0,000

12,000

18, 000

- ----

5,000

-14-

SECRET/KAPOK

-anna ease

---

## Page 67

4-00000

SECrET/KAPOK

•??:

Station Mexico proposes to pay only a portion of the IISE operation.

It Is

not Intended that this partial support vill make the organization a comletely

controlled station asset.

It will rake it responsive to station glidance.

Tue organization receives funds iron private a jups but the Stailor does not

Know the amounts of

all the donors

end it is unlikely that we will ever know

these exactly.

2.. Foreign Currency.

There are no special reguirerents for foreign currency.

-3: Corraitments.

No permanent commitrents have been made.

Ho zunding and Accountability.

Funds will be paid to LIar?-l by the Inside case officer. Receipts

w1l1 be obtairal.

The noney will be paid in cash in local currency. There

ere no unusus! funding and accountability requirements.

H. Annexes.

1. Auntnistrative Plan or Fiscal innex.

It is not belleved that this annex 1s required for the LIVET Project.

2. Cormunications:

There are no communications requirements for the present tise.

3. Techulcal support.

There are no technical support requirements for this project.

to Infistics.

There are no logistical requirements for this project.

5. Intelligence.

Operational Intelligence Iron other U. S. Agencies is not required.

Intelligence zrozuction fron this developrental project has includei nine ri

reports durira 195% aside from a good deal of report reterial hick, though

not disseminable, is of considerable interest to the station.

-5-

-SECRET, NAPOK

---

## Page 68

4-00000

APREIDD. I

Principal CIfisers

0f the IISE:

Director:

LIc. AgustIn !VARIO V.

Lic. Carlos SAC:EZ NEJORADA

Enrique URNEOFF

HugO SARINE

• LIc. Guctaro R. VELASCO

Ing. Jose RAZRA ?.

Lic. Pedro Avis Sals

Anthal de INVieLd

Pariano I. SUrea

Ing. Jose de la MiCORRA

JACObO PEREZ BUrIOCO.

Lic. Arturo BIE:C Y Urguid1

LIc. Carlos Loras de Llergo

Ernesto J.MESCUA

GuillerTo GUWARDO Davis

JOSC A. IRCADON

I1C. EdUZICO PRIETO I.Opez

Antonio L. RODRIGULZ

Tomas G. COARiSA

L1c. Antorio FaRez Verala JI.

Adolfo I. RIVERULI.

Federico SANCiEL Fogarty

Clemente SERiA l'artinez

Cayeteno BiAnco Vigil

Felix DIAZ Jara

Enrique AYAlA ledina

SECRET/KAPoK

--..

Lisabiestono.

---

## Page 69

4-00000

DISPATCH

Chief, WH Division

INFO.

CLASSIFICATION

SECRET/KAPOK

PROCESSING ACTION

MARIED FOR INDEXING

XX

NO INDEXING REQUIRED

VY QUALIFIED DESK

IN JU DE INDEXIN

chlot of station, Mexico cley l.

Project Approval Request

ACTION REQUIRED - REFERENCES

MICROFILA

I. The attached project outline is presented for approval.

could be changed

It would be appreclated if the cryptonym of LIHUFF/1

to conform with the new project cryptonym.

Standari Cacis

Enclosures:

Right hand side

3 Taent taes, 31% 40751

Distribution:

030 WH, w/encls

Edic We Leat:

20S-COPY

CROSS RESENCE 3/ SPLIT PMEONPAOIDAFOI ANO MUMBA

BED DANCATON.

MMMA - 26353

CLASSIFICATION

SEGREIKAPOS

50-124-28/1

DATE

15 June 1965

MOS FILE NUMBER

3

---

## Page 70

4-00000

.. =

I. Enargency Contitions.

Since the Director so the group 15 a lexican rational, he could continue

living and working in laxico In the event of emergency anti-U. E. situations;

borever, he probrily would not outright attack his om governrent.

It 15

Ikely that the group locally night lose its effectiveness or cease to

However, a change in the Mexican political scene ay

not affect the group's sirices in other Latin American countries.

In the

event of on energency situation, contact can be made by the case officer

wlüh either LIHUFT-1 Or IIiuz?-2.

-6-

SSCRET/KAPOK

.......

civica dist as shin:

i mis in tel ani

---

## Page 71

4-00000

ONG CTHALLIWELL\

UNIT. .WH/1

EXT

14523

DATE: 21 APRIL 1965

SBCRBT

D NO IND2

EX FILE IN CS FL NO. 50-121-28/1

6

LA

7

8

10, Mexico City

?2 AR 65 23

27 z

FROM

DIRECTOR

CONF'l

X118

ANO CA2, PCZ, VRIFILE, C/OA

SIG CEN

TO

MEXI

INFO.

CITE DIR

REFS:

А. НИМА 25728*

03908

B. DIR 9977474

MHSPAWN LI HUFT

LIHUFF APPROVED 20 APRIL 65 FOR $7500 LAST HALD FY 65.

DECISION AS DISCUSSED IN JAN 65 FITH STATION IS TO TERMINATE

BY JUNE 65 ALL SUBSIDIES TO MURO. IN EVENT LIHUFF-2

RETAINED ON PAYROLL IN FY 66 STATION SHOULD RENEW LIHUFF

AS SUPPORT PROJECT ORE PLACE L-1 UNDER OTHER PROJECT.

END OF MESSAGE

WH Comment:

*The Station would appreciate a response to the

status

of the LIHUFF project and what has been

the final

decision.

** Please advise effective date LiHUFF-I MOC

change.

Expect for second half FY 65 $2500 for Ll salary.

HE/PO/B

DESMOND

FITZGERALD

CHIEF,

WHD

RILEADINO OFFICER

GOORDIMAYIDO OPRICERE

&BCRET

2.C.Spera

isis

хо оне, Ан

• KAUFMAN

50 24 20/1

Incheded ton

AUTI

docianalty

..REPRODUCTION BY OTHER THAN THE ISSUING GEFICE IS PROMIBITED

---

## Page 72

4-00000

SECRET

PROJECT APPROVAL NOTIFICATION

PROJECT LIHUFF

ACTION

NEM PROJECT

AMENDMENT

RENEWAL

TERMINATION

EXTENSION

OTHER

FUCI

→ PROPRiETARY

AREA

DivIaIon

WH

APPROVINO AUTHORITY

Chios, WH Divisioa 20 April 1965

BRIOD OF APPROVAL

FroM A July 1961

_ To 30 June 1965

CONDITIONS OF APPROVAL

BRANCH

DESK

Mexico

CASE OFFICER

C. Hallwell

AUTMORIZATION

TOTAL AMOUNT ApPROVED

$ 7,500

EXTENSION

£523

AMOUNT

1965

196

5135-2452

Projoct LIHUFE approved la cha amount of 37, 500 for MY 1965.

SIGNATURE

ODP/PO

APR 0120

DIVATOR

FORM 849 ME PORTIOUS

SSA-DOrS

(Signed) HENRY E KING, IR

DISTRIBUTION

BUNSEN

SECRET

DATE

27 A9R 1965

OFFICER

DOPIAG

160)

---

## Page 73

14-00000

• X1111:c11:2J

/ UNIT: 101/1

DrT, 14523

DATE. I Apr1z 1955

TO, SEXICO CITY

FROM DIRECTOR

CONF

WNS

FE NO INDEX

EM FILE IN CS FILE NO.

MESSAGE FORM

SECRET

50-124-28/1

ROUTING

5

LEXI

no PG2, CAT,

INFo,

12, 5.12 k

Tinto es

S009:

527

CITE DiR

99774

EXPECI APPROVAL LIHUFT TOTAL $7,500 LAST HALE IN 65. OF THIS

$2,500 FOR LIAUET-1 SALARY IN LIE DISCUSSION NITE CURTIS IE LEVI?.

PIS ADVISE ESTECTIVE DANE CONTRITE CANGE.

END OF LESSACE

2177217164 159

Wa/BST

Casey (1a draft)

5

Pow inhind

estond FitzGerald

c/720

RELEASINO OFFICER

COORDIRATING OFFICERS

SECREI

REPRODUCTION BY OTHER THAN THE ISSUING OFFICE IS PROHIBITED.

to зv /11

Kaufman

50-124-281

GROUP I

coon pia.

---

## Page 74

14-00000

SECRET

(When Filled 10)

clarite

PROJECT CRYPTONTA

ORGANIZATIONAL

ELEMENT

PRO'FCT ARTINH

TYPE OF

ACTION

NEN

PROJECT

APPROVAL

DIV15100

Hostern ianlschere

FIELD STATION

AMENDMENT

N0.

BRASCH

DESK

Fr 106

EXTENSION

TERMINATION

TYPED NAME

CASE OFFICER

C. Rallitell

ROOM DO

352501

Essiguarters

CONCURRENCES OF DIVISION

(And signature)

Ho do Estatea

hosest Carter

4523

DATE

COPY

NO.

MENCRENOLI ATTRCHIE

VES NO

-A?E

c/17/83

NE/CA/FO

с/ra/ca

e/ve

Doroty Pastoal

Segawar Baltes

CONCURRENCES OF OTHER COMPONENTS

FERIOD

LUTHORITY

до бала 2985

SIGMATURE

FORM

8-60

848

APPROYAL

TOTAL AMOUNT

$7,500

SECRET

FY

1969

196

ANOUNT

DATE

(3)

ANGABEN

---

## Page 75

14-00000

EBCHT/KAPOX

ASMORAILUH FOR: Chie?, liestara seuispasre DIvI8102

SUBISCT

3 Apprornl of Profect LIaif?

ara1lable 11 Wil.

FTEANCIAL DAZA:

JiBCel YenT

1963

190÷

1965 (Gecond half)

Bon DeveLopzentel Funds

$5,000

19, 000

7,500

2. INlA NEM pIOJeCE 18 dO pTOVIÃO BODE SUppOrE aNd DElP BUO-

tain en inirposdont berleen autl-cusmunist gnoup called the Inatitito.

de Invesilgacionsa scclalea y Econouicas. The grouip founded in 1953

bas as lts sin the spresáing of the principleo of Iree eslerprise ani

prIvate suiistiva, Wilri is pariioalarly setive 1n tha student siolá,

ssving organlred s mstios v1de, rleht-uing, active student organisation

called Hovieiento Ualversitarlo de Bemoradara Urlentacion (1a10).

LIUF? funds v1ll be ueoi to pay a EBlaTy tO LiNUET-L, En Auerican

businoseuen vith prerious experlence vith CIA in Fenaws, eed for sgot

covert sotiso activittes such as tha cilltant unti-cúsmaist strioct

sctlvltiss In tha mdversitses asd the placonent of erticios in tbe

PrB8R.

So Ifrestivenoss

Daring, the develonmentad pertod of this actirity, tùa

folloring sudicazsons of efiectivenoss kave deen reporteú!

iarser Azbansador ihouss kamn valuad the IlsE pubalca-

t103 "Espejo" as vorth far bore tian rbat o0s msn in the field

coald accaspllat. (Siation funta so loager support "Espejo.")

ToS IDSE contimisa to provide the station uãa e sasearat

secillty sot otberulee arailable.

Co Provided the Etation ulta e valusble intellectual asest,

Kamel (alr1llo Alonso, mo 18 a somrci af FI Cn right-üing polltical

oa d h tho coa etoe 4 boax af Statog oesunte on tbo "enoera-

EIRCRET/KAPOL

w ..

'j'enn

=arcu.tt

1. liskelrs

-niscttis201uztla

..÷.

ama-b'nán téhiss ai.

---

## Page 76

14-00000

БВСНЕТ/КАРОВ

D. BETRO'$ 200 abaCK troOps bare campalEnEd rigarosLy

replant commiss and pro castro grouys at the lational Univeruity

(U1), and 1a cha Undrorestles of Fusbla and lucialajara. turo

tabes unfar credit for the oustar 1n past southo al coscaniet rectors

pros the Universities al Montertay, Fusble, Quacalajars, aná lorella,

Nuio contes to place anti cosunlot articlos in the mutional padle

of laterost to students and goverment lesdera; taro bas carried cat

surenesful deconstrations against the fortet sabrasy.

5. KURO tOOK AS actIvo part 11 cabling the calleRs govera-

Dent protesting the consullat sature of the Latia Anerican Youta

Canisrence in Lantiago.

8. LIlY 2 lE used by the Station fOr Triting esA placing

cortein trpas al strong ants sortet articles in Excelador ana El

Verrarzal.

want to cum.

Do securdty

participation 1a consealed.

• a station case officer, 18 vitting or tha tras source of fundi

era bave besa no escurity problema during the developental perti

of this activity.

panting da this proposed project has been edegueta. Pive

progreas roports vere received during the past jear.

do do kautin

Chief; th

SCREE/APOR

---

## Page 77

4-00000

--

.....

FICIECT LINGE?

so scontification

Б. 00900t1199= -

To support and custaln e istional right ving student sonoscat, Moriedeva

siveraltario de lianordna Crientacion (JURO), Eupoust a long-establlabod

To Mallitala and LEIlUAICO BIgnISICaNILY ELO

STORT EROE by ODERINIUS A DOGOUTO oI biostantial cOntrOl throusA tals

COR¿SIad EUTLITE. TO ROSIDt 1n saLtalEdo a COUterbaLancIng 11S luenc0

O3 tA COMOR TOSTY, PRI, ADAINEt lOS LETTIGE DIESELLOS tATOUGI ESLO

ospendsation, IIt.

M158103 81279081531

PISOrIty A. 351 1710r15y Bo 30, D, Go

Te IIs3 pe founded In 1953 under the auspicas di a Eray de

runicon bentors, Indaitrialista, und unchanto to eproad the princtylia of

freo esterolce sni privato InitariNa, Sinco 1ES SONniluG Cia Erose tas

artungad a suster of castings and comproadau desseri to szplare tie

dEngors of CranEa, particulaly in 1t0 ecomusic asperto, und bypar

1a$20091159: 18 bas 0rean1i9d the stuient group liti, It bao puollated basta,

pospalato, ará sono lattera on Cocunan da mail na the dergara di eessaado

sectalian it has cagagaú in considerablo proso pianesent ca veritan .

mattars inolvin private inciniro and tha lunaniat thauat; emi 11 bre

Comunisa tint Doald ba astileulE fO uny STAVatA NaXiCan EDop tO

duplicata.

2. IN JUNO 1960, LINVY-! Moltad ELA Fabassy"s Polltical Corsoler

REd roguented en Inbaucy contest MiCa LulT? 2'E Crenization. cubsoquanily,

ERO LEGATORÁCI ASTUDO tHO CON SO EXPLOTO tLO DOGEIDIlItY dI ENTUS EINUBCIAL

Daly to the erop bendod by LIkEr?. In Mid-Augurt 1C2 (182-2530 12245).

011TOr G. GUBLIO DáVISOd Rhe MorioO itnitua tiat tho Etto lea lees

recalvina percial fismilal ald fron a EtOuy of U.d. kustresa cosparazions

solleltad by it. Eusry bailani, uor caconcod, and thss lxaiguartera bad

ALEO DE0I1ÓE EONE fINNNELAI aFDIStINIO LATONZA LALE ChaNTEL.

ATten the

ipoclölcally, dals uno to lala pay for tua

HAL DIRENALE JONAL ANICA DETONELI INIPOTES RAN SY0O

ente2989598138053

Tha lnbassados vai consulted and do repliod tuet to

EDONILE LITET 2 MUS ODO OI ENO S0S eCORONIACO II NaricO Ilsitlay Cerandiesa.

---

## Page 78

14-00000

Tua dobassados also nald tist eraryttins joasible shoulé bo dons to sippom

"ERgAJo" (191T-3023 EYBIT ISES, 30 August 1962).

3. A profeci sua subaltted by the station os 82 karul 1903 (35941-29932),

but seudguarters on 12 JaLy 180: (DIR-53501) Iniloated tlia profect lad boan

disppprovad as subsittod asi thies instoad the itation funding should eupport

thes stuient artivity toro on a spot assistanco basto. Jale sas toso vita

Ebe U. 9, BUEIDELO aGDOCIATES CS LINET-l's plotias up do cost of tha

"Espado" assesina, sone $1,240 por sorta.

Fos station's assistanoe cince

t2A8 E1N9 hER bRON COMPLIAd tO 1D9 DAYASAZ OS LINUVY-L'S RALAFY (5TO per

Borth) and the pajeent of 1500 por nonth to leio, Fia itetion, bonever,

retalno asoREs tO tha SOll range of the LIllTE soctanlos end potestial.

A, LURo, tha militant student orcanisation, le extremely sotivo in tha

poLIEleal uction fleLO, 1n tas portacos as vell so 1a the sanital, The

IISB organisation has 188 off1o00 in Headoo C14J, vita assoclated 0if1ons 155

Salvedor and Cunionala and vortits cuntacto in lia províndes ai festeo pad

SO LINUVE ESTOTOS 1E0 ASTO-CA dO BAlLLOS LA SES eNCEFpELO yEtEu o

aa CEORos1A taY Of 1iT0 und la dorendity at evory tUrA LoLiviousl 1lb0rt8 os

5r88d5s.

Ia kasico this typo us organization la rothar unique, es the tirand

1n Mazleo la tunard nose goransors trierventiss. Tha LiT. a140 11672r90

aud sendo out s0 provinaisl prrepiparo editoriali foaturing e0t8-commzalat.

tarras.

In tin lise iive jauro tho IIiB has callestod Emunty 100i0-1042

OTENAIENTON DIBO $p0220r9 & traldAs couroa de uica Interantod ExUUDO OP

15 tO 20 PETROGO aPA LEiOCtTiRADad.

6a LIUV-2, the Directar de tha Ilit, tiso ebora comploto dodication to

the prata.

tha subore of sus organisation, espostally tus etubente, kare

demeriated curigo sal cupetenre sa a verloty of operations.

D. 9p0rat10n4l Asst8.

1. Berranael.

Lo WTDVT-I 16 A 48-1e07-01d Anaricar Lunisonemas vao seta as o

est-out and ayorational aduleer to Lot-E, to Diractor of to groLo.

LURUF-1 FOFION OF CLA 10 PETSAR fO ADrIL 194T until April 1949 uhez bo

rotianed to fusico.

E san in contast adelally eltà servore of the lexico

Exeit1on ant In luvoaber 1962 vas birad for l'ao abore vozis.

training tas

ad roguired since LuHUf?-l las boon la lutolligence vark fixa bla servico

U. B. Wilitary Intelligenco in hario unthl late loe. la knorn 2a 1a

NOTg fOr CIA. 18SI-LL040 U8 25 DETODET I9UE ETANDO& EL A SOT LIIAUT-I.

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## Page 79

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-

i......aud

2. LINUST 2 10 1 47-5008-014 Hoxican Laryer. Is 18 6120 & sell-

Enous ocononfet tho airoota an econone rascarol organisation la harico sod

¿thor latta Aasrican countries.

5A 16 D9t bY LIFUT?-L. WHUET-2 probabLy

suspecte that sundo Bay core to hin pros the U, 5. coveranent; bonorax,

an Of oa 26 October 1962.

1. Toa pelucipal officera of the IS$ ENOUD Bre lloted In Appendix

1. DUSINg RETLY 1904 INTO organized a strong and large chaptar of sta

orgsa1sat1on at tbe University of Vera Cr, Jalapa. Fals Univeralty has

sona 23,000 students sud a airable comnist intultration 10 1to stubast .

FULS ERNES fOUR UNIVIIEIZIOO MOM 11 ELICH MINO LAz chaptero:

Univoroldad Incional Autonous de Marioo (UiW4), Univeraity of Pusble,

University of Gundalajaro, and the Univerasty

• of Vera cras. Taros of there,

ulth the raceyilon of lundalagus, are noted centers co casuantor activities.

2 0.

Tha fuz orgarization frequently end regularly mates press

placemania 1s all of lexico City's leadios souspapers.

Its castorial

features art ales regularly accopied by proviacial publications. Coarul

propaganis ant political actiona of the openization vill to 1n11 asood

arai gusded by the station.

Tha IIs editarial serusoe for provincial nevopapare bas

beon unad by the stasies.

Its Ils'& International comoctions, especsally tha

escolated airiess in salvador un Costezalo, vill ba exploited.

Tos sestion till couttons to call on tha llab to till

8. Lesples of publication and propaganis satertal aro.

attachod.

Bo Security Evalnatica.

Tho INEE organization 1s fulled through a cut-out la such a mamar

that CIA partic1pai1oa l8 concenled.

It is nos connsesed in say say with

any othis CIA operation.

Teste have been no security problems which kave

eara to the atteniion of the station in consortion ulth tuls activity.

BOLD LINUEP-L and IJFUFY-2 have been, to the Sestion's knouledge, quito

diseros about their rolatlonship.

Ia vor of tas asture of the Iliß, tbere

ba bean so curlosity about tha source al funds contributed by tha statios.

-3-

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8. COOrdination.

do all taratsation vira othar U, L. almenta 111l ba handled by tha

for tus prestat thare ens note.

furor AnbantatoR i. laneso tan eated ta Cus lazico to assist toe lIsti

SToL finalelly. Also, tha operational uis of LIlTiP-l uns clasted tita

U.S. Dalliary intel11f000 shen 1t tas learnad that they also bad sa

ATTOrNET 11 NSIRE LIN In ClaRiastin operations. TRay as tot lEinE bia

at the presout tina.

19L8tICRAOIR 20 01095 150,j09t8

A, LICCAES

DOCh DECIOTS LICCAX End BRIRO ATE OpErATINE EE LiNI, a

problena DI crafties sino luto la vortine the catholle aldo or the streot

VAILO LICOAX seriE Ga tha so-called "Indopertents," and there 10 st1ll

Duesty of soon for both to operato. In this cOrDautiOn, 1E sLoalA to Ested

thai a prat coal of suro student affort so dorotad to uiversiisos sutaste

Hardoo C185.

Do LaLaGs

Tase project de enacersia sita a maas propaganda

ABor es the condetes of lina. los only relationshiy batrien larama sid

LINItEM is in the fest chat four of tha nonbore as the comittoo of ilse

ES ALDO SORTERS Of LIANE'S EG-Ten "Board el Directory," Pala Goes 109

BENOBELIILY EAST ON IRBOTLOGLIDE LIVETONAtO DATION tHO SEC prOjACtO aIREO,

AS In ERIT DIEdLER aCtIVIEdOn in tha U. s, Iniividualo Incarosted Li

cive en outales possuillon i thia nature snu frogusntly. topped to sereo

lE mitinto acatesarta.

LILISS/Cs

$1SC0 LILTEP/C 13 a fationai Etesat usmadEatsoa

'BESSELES

s stutest offutes in the titector a fallso, obvionaly blari mad

LITJEP/C APO raring in tha dona general stold in universition outalie

sto offerto, piss eum to a cragilorentary relationablo since liter cas

cork da non tong dayto in there vitoraltisa shon can LIzuriC end cia

ESTIlIEtO SES ETOUDO tO ME LILLiL/S sation itudent carioderison stdca

tendent contederativa, orlouly enn only spend very linitod tire on azy

singie osieraity or estation.

Go lo Coetes.

It so regresated that the follolse artinaton de approved for use la tbe

LIEUP? graject for tua portod 1 Jazzery LIEs thaouga 30 Juna 1565.

FX05

$, 6,000

42,500

"Aspejo"

HO Student 018271564109

12,000

10c0=000

0,000

5,000

GECHER/KAPOI

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## Page 81

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station lustro proposa ta day caly a portlen of the Ills operetion. It lo

nos sizended that inde partial suypor Mll esto the organisation a cuppletaly

controlled station assot.

It Vill Into 18 rESpORSIVE 80 vtation euldano.

Enon the maristo at all tima dutins and 1t 10 Inlivaly theat Ve v18l evas 1303

Chase exactly.

2. Fosslen CUTUneys

3o Consitsente

to permansas cosaltunate hava beer sado.

do Funding end ecosatats Lie.

FrEE FIll ba pedA 8O ITHIT-I bo the fAnido esa osssoar. Espeinto

Too bony t1ll ta pold la cal so 100al currenay, Tera

apo no unusull funding dad aorcuntability requiremanto.

Do Assass

It so not baltered that tale cans so repuired sor the luntil Praject.

Ro Somalessan

3. Totalesi Harrente

Far est no termical sapon regularate for tass pregart.

Bure are no lilesses roguiremats for shes project.

S. Intellence.

not 8oabl0, la os conalderablo listerest to tha festion.

FICPET/CAPOS

• CoAt 785 4899

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## Page 82

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KAPOK

610sa the Disctor of tha fros is 8 laxeen national, ha could continus

Living and vorting is texteo 10 the event of entrgazey said. S. sItuations,

amater, ha prolinly would nos artright sttack bla oa goverment. It is

Ishaly cust the gross locally might loue its elisativenasa or censo to

desaves, & ebanga so tha tastean political scene mav

nOt aPPoot tha EITp'E Offloso 11 Other LatSE AMeTiCOn CONTaTIOs. In the

evant of an examseasy sitution, contact enn da rado by tha care officer

GISCTEST/TAROSS

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KA...

APPENDIX E

PELDALDAL OSSIORTE Of EDA TIEBI

JACODO FERIE, ESTROSO

Aco darloa batin da hlongr

Gulllerso CUAIAIO Davia

TouRs Q. COLARA

Llo, Antarto FuMr Verdis 35.

FederICO SARCIL Posarty

ClEMBADe SERIA Partines

FALlE DINE: GErEa

Bardo AINA Andias

uniti di she ristatis.

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SECRET/KAPOK

A. Idontification.

• Mexico City, Mexico -- Political Action. See G. balow lur other

countries which may become tavolved.

B. Objectives.

Io support and sustain a long-established, proved, anti-Communist

front organization in Mexico. To encourage the expansion of the group's

present efforta ia provincial liexico, and, to some extent, in other

coustrias. To obtain a measure of signiscast control over the

organization througa this continued fundurg. To guido the group in

increasinyly nore afficient mechoda af frghung Communian: and fostering

pro-western programa, such as the Allianco for Progress. To

accomipliah the following objucuvea in the Related Mission Directive:

Z, Priority A. Z arGade, 1, gi Priority B. B a. b. E

C. Background.

ile lISE

KiHUFF (identitz A) was founded in 1953 under the auspices of a

group of Maxicas bankers, industrialiats, and merchanto so apread the

principlos al freo enterprise and privato initiativo. Since ita founding,

the group has arrangod s number of meetings and congresses designed

to explore the dengera oi Communism (particularly in its econonile

áspecto) and hyper-nationaliam; Il has also financed the publication of

ong

paraphista, builetias an econonic matters, and boois. /I'he director of

this group (LIHUFF-2) received support from LIHUFF-1 and ¿be bánineas

firm which LIHUFF-l beaded in Mexico until 31 December 1962 when thia

company decidad to givo up lis franchase in Mexico.

In June 1960 LiHUrr-1 visited the ODACTy Political Counseior and

requested an ObAllD contact with LIHUFF-2'a organization. Subsequently,

iu CuliCHies ODACID Mexico, asked the COS. KUBARK Mesica to explore the

possibulity of giving financial delp to the group headed by LIHUFF-2." In

mid-August 1902 (HMMS-2530 RYBAT), Oliver G. GALBOND advised the

Lexico Station Chal lhe group bad been receivina partial Inancial aic

rOM & PrOup of PEPRIVE busiess corporations (aolicited by Mr. Henri

Holland, now deccased) and lai KEBAAK Headguartera bad albo providad

some financial assistance through this channel. After the death of

SEGREI/KAPOK

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Mr. Holland, it was recommended that the funding be handled through

¡ the Mexico Station, Specifically, this was to help pay for the publication

"pejo, (Heaty The locat OSACID Chiel was consulled. He replied that he

khought LIHUFF-Z was one of the few economists in Mexico fighting

Communiem. The ODACID Ebie also said that everything possible

should be done to support the LIHUEF publication (HMMT-3023 RYBAT

1926, 30 Auguat 1962). t2

-

I 3 The Lifter organization has ite offices in Mexico City, with

associatod offices in Salvador and Guatemala, and workiug contacts in

the provinces al Mexico and in several capital cities bi Latin America.

WHUFE devotes its efforts to selling the free enterprise system as

an economic way of life and in defending at overy turn individual liberty

or freedom. In Mexico this type of organization is rather unique, as the

trond in Moxico is towarde more government intervention.

L LIHUFF maintaias an excellent library of source materials on

e-onomice and free unterprise, which is oper to interested researchers.

LIHUFF publishes regularly a considerable amount of materials.

including the monthly publication (Idantity B). See Enclosure 5 for

samplea of LIHUFF publications.

The group le extremely active in the student fiold, in the provinces

as well as in the capital. It supporta student publications; has organised.

a national student group (identity C); and engages in militant etudent

political sction.

UnturE also prepares and sende out to provincial newspapers

editoriala fosturing anti-Communat themes. In the last four yeare

WHUFF has collected l5 loose-leaf binders filled with editorial clipe

authored in the LIHUFF office. LIHUFF also spousors a training course

at which intereated groups (of 15 to 20 persons) are indoctrinated.

WHUFF-2, Director of LIHUFF: has shoun completed dedication

to his program,

The merbers of Llliter; especially the studento,

have demonstrated courage and competence in a variety of operations.

D. Operational Assete.

1. Personnel.

american

LIHUFF -1 18 a 47

yoar old PEtte, businesman who acts ao a

- 3-

SECRET/KAPOK

10)-31 42

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SECRET/KAPOK

cut-out and oporational advicuI, to LIHUFF-2, the Director of the group.

LIHUFF-1 worked for KUBAG& in Paname from 1447 until April 1949

when ho returned to Mexico. He was is contact socially with membere

of the Mexico Station and 1n November 1932 was hired for the above

work. Blograpkdeal data la'being forsarded via separato dopatch. -He

18 not required sinço LIHUFF-! has beca an intelligence work from his

service with PBPRIME military intelligence duriag WWIl. He was

engaged to wors for PUPilME military intelligenco in Mexico until

rocently. He knows that he is working for kulAtis. HMMW-W010 of

25 October 1902 granted OA for LIHUFF-d.

LIHUFF-2 io a 4l year old Mexican lawyer. He is also a well knows

economise who directo an economic research organization in Mexico and

cover used is that the money is from private business groups. Ho was

granted an OA on 26 October 1762 (HMMW-11039 of 9 Noveuider 1962).

2. Mechaniams.

O a, The priscipal officero of the loity a group are listed in

Appendix 1 fosparato cover enctorare No. J1ª Other detaile of the

organisation are included in C. Backgroand above.

11JE

(D) Tho LIHURT organization frequently and regularly makes

prese placementa in all of Mexico City'o loading newspapera. It8

aditorial scaturos are also regularly accepted by provincial publicationg.

Radio and television piacement is on an irregula, basis.

(1) General progaganda and political actions of LIHUFF

will be Iatluanced and guidedby the Station for its benefitst

(2) LIHUFF student operations have already bea

utilized (ofton in coordination with other Station student assets).

"(3) Tho LIHUFF editorial service for provincial news-

papere has been uied by the Station.

(8) The press-placement capabilities of LIHUFF in

capital city newspapers, which in considerable, has been used. This

will be taken advantage of by the Station for KUBARK purposes.

3(5) LIHUFF's International connections, especially his

associated offices in Salvador and Guatemala, will be exploited.

-4-

-SECRET/KAPOK

•tis

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...,

-

ST.GREI/KAPOK

- (6) The Station wilt catt on LIHUFF to fill rosesech needs.

socurity Evaluation.

Tho LIHUFF organization is fuaded through a cul-out in such a

manner that KUlAtis participation le concealed. It is not conuected in

any way with any other KUBARK operation. dd 62u.

F. Coordination.

All coordination with othor PBPRIME elementa will be handled by

COS Mexico as such situations arise. For the present there are none.

In the part, ODACIChtol Mexico asked COS Mexico to assier the group

financially. Also, the operational use of LIHUFE-l vas cleared with..

US, PEPRIME military intelligenco when it was learned that they also had an

interest in using him in clandestine operations.

They are not using hin

at the present timis.

Kilite

61,0

G. Costs.

."I." It is requested that the following

estimates be approved dor use

In the LIHUFF project for the period 1 May 1965 through 30 April 1964, 3= ju

1965

FY 1907

TY 1965

LIHUFF -I Salary

Identity publication-hr

MHP.D Istentity student organization

Total

FY 1953

000.

1200.

1, 000.

$5,000

$ 5,000.

3.000.

25or

5a0 o

6500

325,000.

Station Mexico proposes to pay only a portion of the LIHUFF operation.

It is not intended that this partial support will make LIHUFF a completely

controlled Station asset. It will make it responsive to Station guidance.

The organization receives funde from privato groupe but the Station does

not know the aniounts or all the donors and it is unlicely that we will ener

know these exactly. The Station, however, will be alert for the future

possibility that the WHUFF may begin to operate solely on Station funde.

Should this occur, ateps will be taken to place the organization under

complete, clasaic control.

2. Foreign Currency.

There are no spocial requiremente for foreign currency.

=50

SECRET/KAPOK

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....

SECRET/KAPOK

3. Commitments.

No pormaneut commitmenta have been mado.

4. Funding and Accountabllity.

Tuado will be pata to LIHUFF-I by cos scentea tectipto wil

o obtained. The money will be paid in cach lo local currency, Ther

aro Do unueual funding and accountability requiremente.

H. Annexes.

1. Admiaistrative Plan or Flacal Annex.

It da nor belleved that this annex le required for the LIHUFF

Projoct.

2. Communications.

Ibore are no communications requirements for the preseat time.

3. Tochnical Support.

There are so technical support requirements for thie project.

1. Loglalice.

There ero no logistical requiramente for this project.

S. Intelligence.

Opentional intelligence from other PBPRIME ageacies is so%.

roquired.

I. Emergency Conditions.

Since the Director of the group is a Mexican natlonal, he could continue

liviag and working in biexico in the event of emergency anti-ODYOKE 4,5.

situatioas; however, ha probably would not outright allack his own govers-

ment. It in likely that the group locally might lose its effectiveness or

coase to function in Mexico. However, a chango in the Mexican political

-ó-

SECRET F.APOK

1]. "

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## Page 89

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SECREI/KAYOK

scono may not alloct the group'a officos in olber Latin American countrios.

In the event of an er: ergency situatios, contact can be mado by lisa C/0

GOE with either LIHUFF-l Or LIHUFE-2.

NOTE: Ter a nore on the production and some successes

af tho LIHUFF

organizasion, see Appends Il (separate cover enclosure 4).

SECRET /KAPOK

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## Page 90

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.

SECRET/KAPOK

Tha files of the Mexico Blation have been chocked lor derogatory

laformation on tha samos above. There was so dorogatory information

on anyone of them except Fodarico SANCHEZ Fogarty. Elforte will be

made via LIHUFF-I to get him removed from the organisation.

-20

SECRET/KAPOK

a cubestinatin samo'il..

i detes intend distor

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## Page 91

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SECRET/KAPOK

EDCLOSUre 4 tO HMMA-

20931 (UNDER SEPARATE

COVER)

APPENDIX I

The Organization and its Director have:

8. Furnished the Mexico City Station with index cards and

summary information on some three (3) thousand Mexican Communists.

Although almost all of thes. Communists were already known to this

Station, the data confirms Station information and, in some cases, adda

to Station knowledgo.

• Mactions

face bandes. Organized a nationwide right-wing, anti-Communist and

active student organization in the nation's universities. It is called

Moviniento Universitaria Renovadora Orientación (MURO) publiches

PUNO (Fist), a fighting anti-Cummunist student paper and has organized

shock brigades ready and willing to take offenvive (street fighting)

action. MURO has bean very active in the National University of

Mexico (UNAM); the University of Puebla and the University of

Michpacan. In the last two MURO can claim a large degree of the credit

for ousting Communlas rectore al these universities. (

c. Kept its publication, ESPEJO, actively attempting to counter

overwhelming odds and advantages held bypro-Marxist econcmiste and

their teachinga in Mexico, Chiel-ONACH believes the Director and the

organization are most useful in this regard.

d. Taught groups of students pro-capitaliat, pro-free enterprise

economica - a rare and much needed service in Mexico where the

Communists have taken over the field of economica in higher education.

e. Continuoualy published pro-*BPRIME, pro-íree enterprise

and anti-Communist articles in Mexico City's leading newspapers and

in the provincial press of Mexico.

1. Attempted to pread to other Latin American countries.

and to coordinate with appropriate organisationg and individuals in

(1) H21MA-20947 of 14 March 1963; (2) HMMA-20300 of 3 Decembor 1902;

(3) HMMT-3106 of 28 September 1962; (1) HMMA-19296 of o July 1962;

(5) HMMA-18685 of 9 March 1962; (6) HMMA-18678 of 6 March 1962.

SECRET/KAPOK

antoin

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## Page 92

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DISPATCH

Chief, WHD

CLASSIFICATION

SECRET

INTO

FROM

Chief of Station, Mexico City

General - Operational

Specific - Present Status of LIHUFF

ACTION REQUISED-REFERENCES

xX

PROCESSING ACTION

MARKED SOR NOEXINO

I INSTEINE BEQUIRED

ONLY QUALIFIED DESK

CAN JUDGE INDEXING

MICROFILM

REFERENCES:

a. HMMA-23708, dated 17 June 1964

b. HMMA-23855, dated 9 July 1964

1. At the time the LIHUFF activity 1s approved as a formal project,

it is the present intention to turn over the operation to either

Oliver N. PRIMACK or Stewart R. PATAKER as the case officer. However,

for obvious reasons, it is not desired to make the introduction of one of

these individuals to LIHUFF/1 until such time as an assurance of continuity

with Headquarters' approval of the activity as a formal project has been

received.

2. In view of the time which has elasped since the exchanges

in referenced dispatches have taken place, the Station would appreciate an

indication from Headquarters whether or not LIHUFF is being processed as a

project. If it is not or approval has been denied for one icason

another, the Station would

also appreciate knowing this so whatever action

has to be undertaken can be initiated.

Jeevail Patate

Willard C. CURTIS

Distribution:

3

-WHD

2 - Files

Escuird has 12-2:

I: Ne 581r.. en1

declar: walter

CS COPY

CROSS REFERENCE TO

DISPATCH SYMBOL AND NUMBER

HNNA -24682

CLASSIFICATION

SECREI

50 - 124-28/1

DATE

3 Nov 64

HOS FILE NUMBER

50-124-28/1

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## Page 93

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8 ApIll 1963

HENORANDUH POR THE RECORD

SUBJECT:

Comments on Proposed Project LIHUFP

I recomend this project proposal not be subaitted

We would

=. The LIguri organization has other sources of

inuT

funds and would conduct itg activitics anyuay althout any

support or ald fron CIA or any other U. S. Governsent agency.

in 2s TUre A projoct to lund the organization 1s unnecessary.

b.

The Station indicates that it has acaleved,

But no and can continue to achieve, results through the LIHUr?

contial

mechanisn without naking sizeable paynonts.

A project to

provide a subsidy is therefore unnecessary.

serate menbers of the LIHUrT ofgAnization are

also seabers of the LISIRIN organization.

Eduardo PRIETO Lopez, recently discussod the LISIREN opor-

cropose

ation w1tb tbe DCI 1n the latter's Headguarters office and

This fact, taken with the sintlarity of the proposed fundles

-mechanisn

to that of LISIREN, the similarity of operationa

of tho two organizations, and other such parallels could

expected to etrip LIlltY of Its cover and

crente a potential security probleu.

The activities that this proposed project vould

subsidize overlap the activities of several other oporatious

LIBUFF does not contributo enough beyond

this overlapping to be justifiod.

Its student program coln-

..LICOAX.

шлі

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## Page 94

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(1) ENHA-20905: LIllUrY obtained & cops

of a book now out of print sritten by Victor Manuel

VILLSENOR, Those viers vere of interest to the

(2) HMMA-20306: At tho station's request

LIHUFF "suggested"

preparation of a reply to a

booklet written by a Connunist Party leader.

(3) HNHA-19296: LIHUFT/I returned fron a

trIp to venezuela with & copy of & plas for cosmunisi

operations there.

(4) HUMA-18685: LIHUFF has thes with CERS

1n Guatenala.

HHMA-18678: Illurt published and distributed

a commentary on a larzist book about Cuba.

(6) HMT-3106: LIHUrT gave the Station a

list of Communists, Socialists, and Marxista.

(The

project outline points out that the station alread

2.

I jurther recomend that the Station be asted to

confine its activitles in this operation to those of only

7o flutient ing bund

Gabe love

seal fair pite

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## Page 95

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CRYPTONYM INHUTE

STATION MEXICO CITY

SECRET/KAPOK

PROJECT CITLINE

FIELD CASE OFFICER Fillard C. CUATIS

CHILE ON STATION WIllardC. CURTIS

The attached pralace la pressared lus approval.

SECRET/КАРОК

=.

anital donai

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Maxico CLiY, MordCO •- Palitica! AGlisa. D00 G. Dolor 8oR Osbe8.

constrico maica tay bocome sarodrid.

B. Obloctiree:

Te support and eustaia a issi-artallialer, proved, sabotaramusle:

Irant osgRalision in bovaco. Io escoNrago tie expaaaiss di lia group'o

1898088 allaris la proracLi Marco, Asi, lO sOnO CHIaSi, in Olior

arganlaces essonga dais costaned dallag, to sudde la groap 1a

accampliah ibe dallontag objacsiras la lan Balated Miostos DiseRtivo:

Pederloy A, do Do So do 8o 8, Si Palority B, da 8, Da do

C. Backgaguad.

LIHUFE MOOREY A MAO lOnadad in 1753 sader the suspicas dê a

BrOUp el Modeas bachoro, Ladustraliois, nal inerchaato do aprodd tho

prisciplos d 1a00 esiorprido and privais iridialire, alese 11a isundiag.

ls axplare the 1ager9 el Cemmusiam (particularly is due scasonado

aSpeciA) aud LYPer-saLanaian. Le Lao slea finAnced los pubLiastion sá

pancasleto, hollotico en esecondo maiore, nod bagad. Tha duracros es

company decided lo gine ua lus loanchise is Merico.

La JURO 1950 LIETE ViBiLd LA ODACID PeLLica Counaelor nad

segueesad sa abacio conast mich Linurr-l'a erganisalan bubgaguardy.

CHIMODACIO MANICA RAKOd ME COS. KUDARK MORIGE, LO eSPLORO DLE

posartility e siring fizanciad belp so san groisp beaded by Littiagod. Ir

naldo ANgEs: 1901 (HOLMS0?530 DUBAI), OliVArG. CALDOND adused tas

basdro sullion test sho grous bad beon seralriag passial linsaciai aid

LEON a ErBEP E PEPRIMA baBiasse corporalens (dellaised by 145. ileary

Holland, sou deceased) sEd MI: SUBARÍ Mosdquartaro bad also providad

BOTS LIEBACINI JABIOBRACE CREDIEÀ ELIA ChADREL. ALtOS RIO GESTA 0S

SECRET/KAYOK

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## Page 97

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SECRET, KAPOK

Ms. Hollead, it was recommended tha! ine lunding be hasuled through

the Manico siallon, Specilically, lie cas to reir pay lor tha publicalios

(Idaality B). Ibs lacal ODACID Chiel das cousuiled. He roglied thee se

thougàs LIHUFF -2 tae ona d the lew economiais la Mesico figating

Camazalom. Tho ODACID Chiel siso said that ovarythis possiblo

shoald be daco so support to LIHUFF punlication (HMSSI-3023 RYBAT

1920, 30 Angue: 1962).

The LIHUFT Organistion has lio afficed sa Mordeo Cisy, with

secocialad alíicos la Saivador sad Gualorala, and borking costacts la

tha proraces dÍ MOXiCO and la saveral CapILal Cilias ll Latia AmaTicE.

LIHUEE dovatso lto ellorro to selling tho free esterprise ayotem an

as economie way of life and in deleadlag at every turn individual liborty

or freedora. In Marito lia typo of orgaslantion is ralber unique. ao the

trend la Maxlea la cowards mose goverament intervention.

LEMUFT muLtains an ezcalians library dá sourco matarials os

ocoremico and free entorpriss, mich 1s opon lo intoredled researchera.

LiHUFF Labliabao regulariy a considerable aroaat di rraterisio.

ineluding to monttir pablicanos (ideatity B). See Saclosure 5 10x

asiples a LIHUrT publications.

The group de ostromely activa la tho arudon: field, la lao proviacea

as well an in the capical. It supparto siudeni pubiicationa; noe erganised

i Battenal studsi, greap (Identity Cli and engages la müliani eludsat

political s08105.

¡HUEY sioo preparea and deado out de pravlacial catagspars

edicertale featuriag ball-Communis! tharses.

is the last lois yeare

LNUET has colleciod 65 loose-lead Undere fulled mich eastorial clips

aUthOTEL SO ChO LINUFF CliCa. LIHUFE alsO aporara E iraislag cource

al raNch LASerOnIOd groupe (d 15 so 20 peradas) are isdoc russed.

LIHSUFF-2, DLIOCIO, d LIHUFF, has abora comploted dodicailoa

lo biz program, The members el LiHUfl, aspecially due siuúoto.

have demonasralad courago and compolance in a variory of operadone.

D. Operational Lacete.

1. Persorsai.

LINUE -11O & 1T YOUR Old PAPRIME bIALSCORMAN ThO ACtO 20 1

- 3-

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## Page 98

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cat-out and operaional adrisor so iitiufr-2, tha Diracior of lho group.

LANUTE. wOrked 10r XUBARK in Pardia fromiyaT uncli l-pru 1949

ENGA La pOturned tO MaNiCO. He was in cuntact soclally vith membara

al tha Mosco Station and la Novembor 190% was Nred lar the aboro

Berk. Blographical dals in bali loras,ie1 via soporato dispasca. Ho

do contucrad by kullard C. CURTiS or MIChAO C. CHOADEN. IssisLag

¡a sos required diace LIHUTI -l bro bees in Laisiligance work frem bis

BETTiCO WiLL PEPPUME military Isiellijance during WWIl. Ho was

engaged to mari lur PAPRiME miliaTy isielligence in Morico uaill

SaCOnEly. Ho knows that he lE Worli for KUBARS. HMMW -2:040 ol

85 October 1901 granted OA dOS LIMUFT -L.

MHUFT-2 10 a 40 year did Marican lawyer, Ho is also a vall kaown

oConomist whO directo sa oconomic resosIca erganisalion da derico dad

ether Lada Amarican countrios. Ho Is me by LIHUFE-l. MHUET?

probably suspoces fla: fuado may coma lo hia fran ODYOKE; bovover.

cover dead le thai lue crose, 1o fram private business groupe. He bas

gested an Oh du 16 Octobes 1902 (HAIJIM-1009 al 9 November 1968)..

?. Mechasierio.

a. Ida prinelpal officore d the Identity A group are lintad de

AppEndia I (sepAISlO COTOr enClOGUTO NO. 1). Olhas detalla ol lao

OrgANsIOn a50 includod la C. BAcigIoad abore.

D. The MHUTE organisation frequently and regularly makes ,

peasa placomsaro da ald el Mexico City'e losdina namapapero, Its

editorial lashiges are aldo roguiarly accepted by proriasiad publicationo.

Radio and talorision placement is co st irrogular baale.

will ba balluanced and guldodby lns stales for lio beactis.

(2) INHUTE studeni operations haro adready bada

uslised (olion le cesidinates mili disar Station srudent ascers).

(8) Tha ISHUTE eliserlal derrico los provincial somo

papara bas bona uncá by to Stalda.

(4) The pross-placeDen capabillies a LIHUFF la

caplial cily nemepapers, Malch la coasidorablo, has boan uande Tols

will ba takes advariago of by lo flation los KUBARK perposes.

(B) LIHUFF's interardoses consoctions, espocially ble

asposlated cilices la Balrados and Gusionals, vill bo exploised.

BICRET/KAPOK

12t.

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(8) The BeAtion Wili Call as LIHUFT to fll podcerca seado.

E Security ITaliatios.

TRE LIHUFY orgasizatios io funded ebrough à cas-oas la suck a

ARAnOS CAl KU BARK participalion lo concedicá. Il le nos consectod li

aBy vay sità say Ottor KUBARÃ operAciO.

8. Coordinados.

All coordlastion vila other POPRIME elements wIll bo henélod by

CO MeSdEO aS SUCA EisUaLiOnS arIde. For le prosant laDrO aro Doso.

la tha pass, ODACID Chiel Mexco auxod COS Marico lo apalai lae groap

trazachally. Aloo, to oporational uas dl LIHUFT -l vao claared il

PEPIUME military Inteligence uhan it nas learned that thay ales bad sa

Intoreas la uning bim la clandostine operations. They dre sot valag bim

a8 tDo prossas tirao.

a. Cosse.

1, Il la pequentod usal the followiag estimalas bo approved for uso

¿n tão INHUST projoce dor to perlad 1 May 1763 througe 30 April 1904:

[X 1863

EY 1964

LEUTE ol Salary

Idertity publicallon

Identity atudent organisation

Total

$ 1,000.

$ 5.000.

2.400.

12,000.

1, 600.

8.600.

$5,000.

$25.000.

BEAtlER MasdeO propopos to pay paly a portion dí lo LIHUFF operatoa

18 ho nos talendod thas this partial aupport wil maxo LIlUTE a compleraly

contralled stslian adial. li mill mano it raspoacire to biatlos gustaaca.

Tio OrgANiLadOs FOCaiVAs lunda fIOT, privais groupo bur Cho Euatios doso

ans laura tho amounta or all lho dosora and le la unlicaly chai wo «íli

ABOT CLERO dESELY. THO SLAdOR, hoMeres, Mill Do alor8 lor te isluro

posstallity that the LIHUTT may bogla to oparara sojaly on Station isado.

Buonde sula occur, eleps oill bo taiea lo place lae or ganisallsa undos

camploro, classic coatral.

&. FOrEIRE CHrTORGI.

ThOrO sIA DO apoCal reguireInenSe fOr fOTOLLA CUrreNCY.

- 5.

SECRET/KAPON

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## Page 100

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:

SECRET/KAPOK

8. Comrallmonse.

No pErmanens commismaalo bato boca raa do.

6. Fandlar and Sacouszabllusy.

Fundo vill be pale lo LIHUTT-: by COS Mosaco. Roçolpro will

Do outalaod. The money will bo paid la cast in local currency: Ibero

Bre s9 unutual fundiag and accountablilty regulramento.

1. ABD9K08.

d. Adrataloratiro Plea or Elacal Anuer.

1l 1o nos balderod thas tilo anaex do required los the LaMUEl

2. Sommunicalloses

There are so communicatora reguls emanta dor tae prosors iime.

3. Ischaical suppart.

Those era Ra lachaicsi support requirements los lado projece.

Thore ara na jestaucel reguiromesto dor lado projaci.

B. Intelligence:

Opazional totalligence from sher PAPRiME AgeNCIOs is DOE

segula sido

¡AzEo the Diractor di tha froup la a Mexican national, he could cedars

Uning and warthas la lasico in le evant et omergeacy sud-ODYOKE

elmationa, bovorar, La probably roudd sos aussight atlack kio ama govara-

JaS?, li la liGY thes the grOup LocaLY Migil LuRs 180 OdoctiVEnesS or

GOREA tO FANEtAS lO MONdEO, HODOrER, A CLANgO lE LAO biEscan political

SECrET KAPOK

.. a11 2046 desse

---

## Page 101

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BECRET/KAPON

contact cas be made by the

COS ElES ORIOT LINUSE-I OF LIHUFF-?.

NOTI, FOr B BOLO Os tO production and some successes al the ITHUNT

БІСЛЕТ /КАРОК

?..

---

## Page 102

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---+

BECHET/KAPOK

INCIOGUTO I 1O HIILLA-

20911 (UNDER BEPARATE

COVER)

APPENDOS 1

IGENS1S00T

lo Basteso do lstostigaciando Sociales y Iconoslezo, A. 6.

E. ESPIJO, da ereneralce joupnel ahich atroagly supporto tho

Esco caterprtoo oy stala

c. M. B.R.0.

D. Principal Oliscera el laboro:

DiFOStOSI LAO. AEROLLO NAVARRO V.

LUIS, CArLOS SANCHEZ MEJORADA

FAStONO UNTHOTT

Lat. Pedro AtE 8A18

Anill de ITURBIDE

M481959 3. SUAREZ

1Eg. JOSO de LA MACOREA

JAROLO PEREL BARIOES

LaS, AITUSO BUENO Y Urguidi

CULERES QUAIARDO Diris

JOSE A. ESCANDON

Lude, Edsardo PRIETO Lopes

Antesio 1, RODRIGUEL

Temas C. COARAEA

LAC. ARIOSO PERLZ Verde J?.

ABallOL SIVEROLL

Fedorico BANCHEZ FOgATTY

COMORRE BENNA MATTINOS

Cayetiso BLANCO Vigü

T'alla DIAZ GAsSS

EETIguo Al'ALA Malna

ESGRET/RAPOR

---

## Page 103

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SECRET /KAPOK

27g11100 ol the Masten Station havo bees chached for doregasory

ES BEYEDO I: 1GT GLEEDI ECLETICO SANCHEL FOSSITY, ELIATSO MURI DO

1960 Via LINTIE» lo got bla ramorod isom the or goalsatica.

SECRET/KAPOK

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## Page 104

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GICHES/KAPOX

InCLOFATE & 80 HAMA-

2091 (UNDER SEPARATE

COVER)

APPENDIX U

Tho Orgastsales and 10 Directos have.

Do Fornichod to Marco City Stallar wiis lodor cardo sed

surrenty haler mallon on soma lares (3) thousand Liestcan Communisto.

Alparagh Bless all al theso Comuunlots vero alraady kroma lo dala

i statice knowledge.

I Orgarlsed a neilesmide slhi-wing, aell Commanies and

elina stutune ariantastien in las anlion's universitias. Is la callod

Lorimbiaso Univoraltarla Renovadora Oriolación (AURO) psallalse

PuDo (rhes), a lightlag ast Commanhos crudent papor tal has orgaalood

macan brigados ready asd villag to late clencirs (8x10e8 figiting)

ARIA MURO lO baGa VurY actIvO in tE NaTana UnirSBiTY E

Mcalso (Unald)i tha University ol Prabhi and the Unitersily e

8Or tESSEE COsmInitA rectors as thass vnitercidos.

e. Hept ds puallestion, ESPEJO, selively attampilag 80 corres

EiI SESaRge in Musica. Chie ODACID bolleres the Directo. 3a2 tha

CrueLa bara tien ores the laid ol economice in bigaur edscation.

ta the provisaal prosa el adolco.

1. Attoryted to spread lo cther Latis Amaticas coustiles.

sad to coordinato uita appropriate orgaalnationo nod todivisalo le

Gee contres, anti-Maro economE choortes.

§. Sente tensales of producica from the erganisatios are.

(2) 1881144-20949 01 81 LATES 19S11 (2) HWIA-LOSDÓ El 1 DeCONDAR ISiBi

(3) HMSET-N0S of Z8 NaposanDa: 1962; (4) HASLA-19298 01 0 JESY 19628

(8) H144812-18685 01 8 NarCa 1982: (6) HM3A-L86T8 0 6 slarth 1868.

BECRET/KAPOK

---

## Page 105

та: t

on me . -124-10,0 N.

casso TO tHE NO.-

XIET TO FiLE NO

CLASSIFIED MESSAGE

BYPisECRET

POUTINS

5

TO

• DIRECTOR

FROM , MEXICO CITY

AGTION, WH-8

INFO. VR

R

'SECRET 112326Z

SOIR CITE MEXI 9922

PREF HMMW 12635

Y

HMMA 23788. DATED 17 JUNE REPLIES:

SECRET

18 NUR GIN 08 94I

ROUTING

RID/AA

INITIAL

97:8012.

zond

1088 1389

HENCEN

RID:

10H/1

DESIRAY

53-124

•CRET

RI

COPY

IS BROSHIRIT

---

## Page 106

14-00000

DISPATCH

CLASSIFICATION

SECRET

Chief of Station, Mexico CIty

PROCESSING ACTION

tO

кика

NO INDEXING PEOUIRED

MY QUALIFIED DE

Si JUDGE INDEXH

FROM

Chief, VE Div1810n

MICROFILA

SUBJECT

OKUNOLE/Operational; LIHUFF Project Assessment

ACTION REQUIRED - REFERENCES

ACTION REQUIRED: Submit into requested =

REF: HDW-12379, 2 March 1964

Headquarters has not yet recelved the Station's

assessment of the LIHUFF operation which in accordance

with the reference was expected here not later than

I June 1964. PlezBe advise when it may be expected and 11

there has been any progress on the printing of the book

In Buenos Aires:

Chester D. DAINOLD

Distribution:

O&1 - COS, Mexico CIty

CROSS REFERENCE TO

DISPATCH SYMBOL AND NUMSER

HMMK- 12635

CLASSIFICATION

cs 98.3

SBCRET

OFFICE

OFFICE SYMBOL

DATE

DATE

50-104-2871

1 June 1964

HOS FILE NUMBER

50-124-28/1

ORIGINATING

COORDINATING

/ EXT.

5940

= n 10..

-I-RI

RID/AN

1-Chrgze

RID/MIS

0F5:21R'5 NAME

---

## Page 107

iS PATCH

MAPPED FOR MOLING

C208: V Dirtados

LONEY 2700008

NS7:

0:2

80G03

DID 8160

99/C80*1144

}.

Mate len?:

and 1he heroe of anchorined charina do L1lI80-8

ti::

FYE4 K614

provided to 13.

13)

Pet

та.

?!:"

Sention should ducere Tilisiy to 11c

limitations- un

Malate did the Chart fT Statil

activities.

Sticula

you Deal,

4N 6400021

Juch as

reconnedal 10.55 111

*uls

0N 4133414

As ale, Indratre in ict 1i,

Bradquarterg

his

aditIonal 500. 000 tu Proper LabisP-5 jor 1861

alliscated

bringiag the 8r0r1

+> 932296.

pals additions!

ailuigent will have

T8 0:

documenter

be useo

Iri support ut it.

3.

Precisel

for flared dese

DE95e651.

*ii!

mind macariot.

%.:"

surpardec

sith BUl4-20031 lad astese the dropoet for

appiosal.

Platributioz;

ok;-CUS,

Sextor City

POISPATCH SYNAEL AND FAUSP

82104.34373

CA!E

SECRET

KH, 3/8001001В

1984

50-124-36/1+2

fida

-SEGINA?

searchardt ich:

159.10

Distribution:

1- R1

1- Chrono

DELEASING

CAlE

---

## Page 108

4-00000

•Ickharat.

exico

- EZB-64

MEXICO CITY

390:09

=

CLASSES MESAGE

-DONUTEX

SECRET

1:12.

T41

TST

14FEB EX 25

48 2

50-126-25/1

DIMAGEN

POUTINE

Pa 2, VR

CITE DiR

XIE!

99160

REES:

A. DIX 86033

5.

RET 1 7526€

c.

BUEK 0939 $ 7

1. LILISP-S BEING ANZADED FOR ADUIT:ONAL 230,000 POR FIGA.

S. BIATION AUTEORIZATION FOR CHARGES TO LILISP-X FOR LIHUFE

ACTIVITIRS FOS BALANCE Y764 LIMITED TO FOLLOWING:

A. LINUTE SALARY.

$500 pER MONTH

B. SUPPORT FOR SBLECTED

250

580

STUDENT ACTIVITISS $500 PER MONTA

C. PUBLICATION OF DOOK

PEE HEYS B&C

$6000

DISPATCH FOLLOWS ON FUTURE PROJECT LIFUFT WHICH NOS

StRAITTED YOR kEPEOTAL.

END OF LESSAGE

/s COMONT: 6: 37763

*= N 00923.

AROS PONTIERO STA LINUFF IS LOT APPROVED PECUECT.

-..=

ani!

NING

WN/BF R. Carter

(Phone)

WEITTEN

DEFICERS

GEEP I

11810001 ti30 Deleter,

OFFICiE

03005818: 98 800

oa1181.0at10n

SECRET

REPRODUCTION PY OTHER THAN TRE ISSUING OFFICE IS PROMIBITED.

ü09z3

UTHENTICATIN,

FFICER

Capy Ha

---

## Page 109

14-00000

aska

DISPATCH

CoS, Mexico.

o cIty

CLASSIFICATION

SECRET

PROCESSINE ACTION

MARKED FOR INDEXING

NO INDEXING REQUIRED

ONLY QUALIFIED DESK

CAN JUDGE INDEXING

MICROFILAI

INFO,

FROM

Chief, WH Division

SUBJECT

KUNOLF/LIHUFF - Operational

ACTION REQUIRED - REFERENCES

REFS:

A.

В.

НМИК

11780

HMMA 22250

With the discontinuance of the subsidy for the publication

of the LIHurT magazipe as reported in Paragraph 3 of Reference B.

Headquarter's majorlobjection to this project has been satisfied.

compelled to point out to the Station that despite

disapproval of this subsidy in Reference A,

the Station

continued payment of it for an additional five months.

In the absence

of any interim reporting or other attempt to justify this continued

expenditure, the Station Chief exceeded his fiscal authority.

Although Headquarters is prepared to make a concession to the station

with regard to other aspects of the project as stated later in this

we must advise you that the prolongation of the LIHUFF-1-

magazide subsidy for five months is viewed here with great serfousness

requested that lillard C. Curtis prepare a dispatch explaining

With regard to other facets of the project, we are willing

to continue for a time even though we are not fully

convinced that

the level of LIHUFF-l's compensation or the student activities

supported

are justifiable.

To avoid an arbitrary termination of the

entire operation at this time, you are authorized to proceed for

Year 1964 on the following basis:

A. To continue LIHUFF-'s compensation at $500 per month.

support selected student activities through the

LIHUFF complex at a rate not to exceed $500 a month.

Distribution:

0 & 1 - COS, Mexico City

(contiqued)

CROSS REFERENCE TO

DISPATCH SYMBOL AND NUMBER

HMMW 12311

CASSIFICATION

SECRET

DATE

28 January 1964

MOS FILE NUMBER

50-124-28

barsta

Titlera

---

## Page 110

14-00000

CONTINUATION OF

DISPATCH

CLASSIFICATION

SECRET

DISPATCH BYMBOL AND NUMBER

HOW 12311

Should you wish to support other specific projects through LIHUFF

such as

the publication of the book, these will be considered by

Headquarters on a case to case basis.

3.

The above authorized expenditures are to be charged to

D&TO and under no circunstances are they to exceed the amounts

specified.

In this connection, you are advised that Headquarters has

allocated an adúitional $30,000 to the Station's D&TO funds for the

fiscal year 1964 bringing the total for FY64 to $82,500. It 15 not

likely that any further increase can be obtained.

The Station is also requested to submit to Headquarters,

not later than I June 1964, an up-dated assessment of the LIHUFF

operation.

If at that time the Station wishes to present a revised

project for fiscal year 1965, your recommendations should be fully

submitted in the reassessnent.

If your recommendations are accepted,

chen Headquarters will undertake to rewrite the project outline

Porarded with HMMA 20931 and submit the project for approval.

OLIVER G. GALBOND

1--

-ORM 530

110)

USE PREVIOUS EDITION.

CLASSIFICATION

SECRET

---