WITHHELD
Originator: CIA
From: CHIEF OF STATION, MEXICO CITY
To: CHIEF, WH DIVISION
Document date: 04/30/1964
Document type: PAPER - TEXTUAL DOCUMENT

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AAAAA

1104-10054-10051

2022 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

DISPATCH

CLASSIFICATION

SECRET

PROCESSING ACTION

MARKED FOR INDEXING

TO

Chief, Wi Division

XX

INFO.

NO INDEXING REQUIRED

ONLY QUALIFIED DESK

CAN JUDGE INDEXING

FROM

chief of sTation, Mexico City

MICROFILM

SUBST

Project LIEMPTY Progress Report February, March and April 1964

ACTION REQUIRED - REFERENCES

Action Required: For your information

Reference

: A.

HMMA-22944, 20 February 1964

B. FMMA-14793

10 BACKGROUND.

The LIEMPTY Project is designed to collect operational information on the

LIMERICK instailation and personnel, as well as targets of opportunity, through

stationary and nobile photographic coverage.

In addition, the project provides

the means for investigating leads from the above noted coverages as well as other

• Station sources.

LIMPTY supports other Station operations through the renting of

"safehouses, providing and servicing post office vox letter drops, conducting counter

surveillances and investigations and performing related tasks.

2. OPERATIONS - REVIEW.

The Station feels that it would be helpful to summarize at this time infornation

reference B) concerning the

previously reported to Headquarters (see paragraph? Headquarters an updated frame

photo basehouses under this project and thereby give

of reference in which to view the roles of the various basehouses.

The LEtTED and LILYRIC basehouses provide coverage of front of the LIMERICK

installation.: Although on the surface it may appear that these two basehouses

provide duplicaie take, this is not the case.

It has been the Station's experience

in running the unilateral LIEMPTY operation that a 0900 to evening workday, which

wolild be required of a single basehouse in order to cover the LIFRICK target

effectively, is just too long for any pair of agents to remain erfective.

This is

especially tre when it is considered that these basehouse operators are

essentially

unsuperrised during their workday.

It would also be impossible for a single base-

house to provide the kind of coverage the Station needs on the target installation,

especially during the peak hours of activity, namely late moming and carly arternoon

(continued...)

Distribution:

* C/WHD

DISPATCH SYMBOL AND NUMBER

HMMA-23343

CLASSIFICATION

SECRET.

50.4

DATE

- 84.

30 April 1964

HOS FILE NUMAER

50-6-74/5

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CONTINUATION OF

DISPATCH

CLASSIFICATION

SECRET

DISPATCH SYMBOL AND NU.

HMMA-23343

For these reasons, the LILYRIC basehouse generally operates from 0900 to 1400 or 1500

weekdays.

LIMITED operates fron 1200 to 1800 or dark (as the daily situation

dictates) on weekdays, and 0900 to 1400 on Saturdays.

These hours are subject to

change to fit Station needs.) Special coverage for Sunday is arranged on a need

basis; however, past experience has shown regular coverage of Saturday alternoons

and sundays is not rewarding.

This schedule provides for both basehouses to be in

action during the peak activity hours of the LIMERICK target.

Although even this

arrangement is not completely airtight, anything less than this would present unaccept-

able gaps in the coverage.

It must also be considered that without two basehouses cover-

ing the front of the target installation, any illness, personal problem or vacation for

operators of one basehouse would terminate Station coverage.

Also worth mention at this poirt is the radio "aispatching" of the LIEMBRACE

team by the LIMITED base.

Due to the tight protective security measures instituted by

the local police in the area of the LIMERICK installation it is impossible for a

unilateral surveillance team to stakeout the LIMERICK installation when assigned to

coverage of members of the LIMERICK staff. LIMITED operator radio dispatches the

team onto target personnel giving direction, means of travel and description of dress

of these targets.

This permits the team to commence its surveillance a number of

blocks from the LIMERICK Installation and beyond the protective ring of the local

police. this radio dipatchins makes posstble the eurvellance of tiMi talent

which would otherwise be impossible or extremely risky.

The third besenouse, LICATtA, provides coverage of the back of the LIMERICK

installation and the garden area.

This coverage is the real "rindow" the Station has

into the LIVERICK target and provides a large part of the information on which

Station bases its identifications of LIMERICK staffers and its estimates of staffing,

personnel positions and Intelligence connections of the LIMERICK personnel.

its position, LICAtIA is also able to provide information on the LIMERICK installation

which is of LAURICLE Interest.

It Is the Station's opinion that as long as the LIMERICK installation is a prime

target of the Station, it will be necessary to maintain the present three basehouses.

To eliminate any one of the three would create a gap in the Station's coverage that

we station polo it he a tole lee on the are i in the na

30 OPERATIONS - CURRENT.

In the past it has been stated that the LIEMPTY operation provides the majority

of photographs used by the Station in its CE operations against the LIMRICK target.

This is still true and will remain so for the foreseeable future.

The Station,

particularly that section concerned with the LIMERICK target, has always considered

the LIEMPTY photo take an essential tool in following the daily activities of the

personnel of the target installation and visitors to that installation.

Obviously

the most interesting individuals in both these categories are those of intelligence

Among these have been a number of PBPRIVE citizens..

For those interested

"arry take for the reporting period included approximately 235 rolla

of operational protos, 205 of which were directly concerned iriüh the LIMERICK target.

In addition,

the daily logs kept by the basehouses on the comings and goings of the

LIMERICK staft members and visitors have greatly aided the Suations CE efforts,

especially in crists times such as the CPFLOOR affair.

In the area of specific support to the Station's CE program (in addition so the

obove) and support is other Station operations, the following is a list of selected

LIEMPTY contrioutions in this area.

LTEMPTY cupport to the AMROD operation continues to be essential to

The contributions made by the two cutouts, Raymond H.

RUNDO SEd OLIVEr &. SCANILING

during the reporting period can be

truthfully described as "making" the operation work.

Only because GRENDE

SCANTLING are available to provide daily axecution of the assignmenta

levied on the Station has the station been able to contribute fully to

FORM

10-57 530

Oliver G. SCANILING continues in his assignment, as cutout in the irreD

phase of the LIEMPTY operation ind alternate contact of LICASA-1 in a

sensitive operation of TAURICLE interest.

Due to the fact that SCANTLIGS

wife died during the roportins darlod with the restling visits of

URG APEROUS EDITION.

141 S143 AND -S1•2

VICE ARE OSSOLETE.

- SSIFICATION

BIORET

CONTINIES GET

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CONTINUATION OF

DISPATCH

LIASSIFILAIION

SECRET

DISPATCH SYMBUL AND NU.

HMMA-233+3

relatives and legal details to be settled, SCANTLING's miscellaneous

operational activity was somewhat curtailed.

However, SCANTLING did

find time to take on the servicing of a post office box mail drop for

the sensitive AEIMPULSE operation and complete two pretext investigations.

C.

GERENDE continued his assignments as cutout to LICALIA and LILYRIC basehouses

and LIENTRAP truck.

In addition GERENDE obtained a safe apartment for use

of the LIKAYAK Case Officer and performed an investigation at the Instituto

Cultural Español-Mexicano at the behest of the COS.

GERENDE and LIEMPTY-10

continued to provide frequent servicing of P. O. Box mail drops used

operationally by Mexico City Station as well as other Stations.

Special assignments were given the project basehouses concerning a matter

Of LAURICLE Interest and the arrival and activities of two LIMERICK TDY

officials.

Full reports were prepared and supplied to the interested Station

officers in these cases.

The project assets have also been alerted to

provide immediate reporting on a special case involving a PBPRIME citizen

which is of interest to ODENVY and KUBARK.

During the recent visit to

Mexico of an individual of ODIBEX interest, the project assets were alerted

and supplied special weekend coverage of the LIMERICK staffer who was known

to have contacted the individual of interest to ODIBEX.

e.

During the reporting period the operational use of LIENTRAP continued to

incresse.

This use has been primarily in the coverage of PCM and exile

Comminists residing in Mexiço.

30 SECURITY.

* 'LIENIRAP was involved in an accident on 24 February 1964 while returning from

an operational assignment. LIENIRAP was struck on the right side by a taxi which

had run a red light causing LIENIRAP to turn over on its leît side.

Since the

operational equigment is not permanently mounted in LIENIRAP, and is carried in a

small case while moving from assigment to assigment, all equipment was readily

evacuated by LIMPTY-10 while the driver, LIEMPTY-Il, and bystanders righted

LIENTRA?. The taxi fled the scene and LIENTRAP was able to move off under its

own power.

Damage to the right side and broken windshield resulted from the accident.

No security problems resulted and LTENIRAP was back in operation in a week.

A survey was conducted among the agents under this project to determine if they

remembered their recontact instructions and verbal recognition signals.

learned that nost had forgotten at least part of the plan. New contact plans are

being formulated and current pictures of all agents have been obtained to facilitate

recontact.

It is planned to review the recontact instructions with the agents

periodically once the new plan is worked out.

4 EQUIPMENT.

No major aquigment problems otar than the LIENIRAP accident noted under

"SECURITY"

above were experienced during shis period. In February the LIMITED

camera

required adjustment of the shutter and trip spring.

5. PERSONNEL.

The Station nas been making a review of its personnel needs under this

project in order to determine where economies could be instituted without causing

gaps in operational coverage or decrease in security and efficiency.

It has been

determined that IIUMPTY-12 can be terminated under the above conditions and probably

LIFMPTY-6 as well. It is planned effect chese terminations as of 1 July 1964.

also has been determined that as of 1 July LIEMPTY-19 will be placed on an hourly

rate for work performed for the Station.

6. TRAINING.

No training other than regular review of tradecraft principles (to include

recontact instructions) are planned.

Photographic product is reviewed daily as

stendard procedure,.

and action agents are instructed as necessary to improve or

correct their technique in both taking and processing the protuct.

FORM

1057530

(th).

USE PREY DUG EDITION.

REPLACES FORMS

51.23. 3 128 AND 51-29

WHICH TUE OBSOLETE.

FLASENICATION

SECRET

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SECRET /

REVIEW OF PROJECT LIEMPTY

For the Purpose of Project Renewal)

COVER SHEET

CRYPTONYM

STATION

LIEMPTY

Mexico City

TIELD CASE OFFICER Quinton

OUSIER

CHIEF OF STATION

Hillars Start

The attached project action is presented for approval for the

-period 1 December 1960 through 30 November 1961.

SECRES /2

AS GETY

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I.

SECREL,

REVIEW OF PROJECT LIEMPTY

(For the Purpose of Project Renewal)

CURRENT CBJECTIVES AND PRODUCTION

Ao

Oliver G.

SCANTLING Segment (discussed in relation

to project objectives):

1.

"To collect operational information per

taining to LIMERICK personnel and physical

facilities."

SCANTLING has continued (See the

last Project Review forwarded as an attachment

tO HIMA-14093, 13 November 1959) to provide

worthwhile and significant information per-

taining to the above objective.

There follow

a few examples of SCANILING's production:

A detailed casing of the LIMERICK

electrical power supply was forwarded

to Headquarters as an attachment to

12 February 1960.

HMMA-14490'+his type of operational

The pro-

luction of

information, which takes several weeks

to compile accurately, illustrates the

unusual talents possessed by SCANTLING

together with his valuable contributions

to the Station's operational information

collection effort.

SCANTLING has been used frequently

to follow up leads produced by LIFEAT/

LINERICK (now produced by LIENVOY).

Por

example, in May 1960, LIFEAT indicated

that the LIMERICK target was having con-

siderable contact with an AGENCIA ROBIES

concerning the handling of incoming and

outgoing shipments.

By discreet investi-

gation, SCANTLING was able to provide the

Station with additional partinent information

about the address, owner and type of business

engaged in by the firm.

Such information

then becomes readily available ir exploitation

should a LIVERICK shigment of particular

interest come to the attention of the station,

Co

SCANTLING is the Station's primary

investigative asset for keeping

track of

current residence addressees of LIMERICK

personnel.

the station considers it important

from the counterespionage standpoint to main-

tain

information on the location of all

AS CONY

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LIMERICK residences.

In addition,

targets are continually considered for LICOOI

A recent example

of SCANTLING's

efforts in this cornection would be the spot

ting and acquisition of

the LIMOTOR base in

the same apartment building with LITALON -1.

Contributions of this type operational informa-

tion are quite time consuming due to the

necessity for checking out several apartments

that a LIMRICK individual may initially be

considering as a residence.

"lo collect operational information pertaining to

other targets of opportunity, foreign official installa-

tons and personnels intelligence interest operating

SCANTLING is also

extremely useiul for collecting

As indicated below, formation on targets

other than LIMERICK:

In March 1960 SCANTLING was instrumental

in locating property adjacent to the LITABBY

installation which the Station has since

rented in anticipation of initiating photo-

graphic and technical operations.

was able to accomplish this assignment only

after a thorough casing and pretext investi-

sations of the several pieces

of property

appropriate for such operations.

SCANTLING is also used to follow up

sensitive leads in connection with LIFEAT

and LIENVOY production from LITABBY and

sister targets (See example as to type

under I,A,I, b and e above).

SCANTLING was used as an investigative

asset to determine the local addresa and

exact employment of Gordon Willian ChorEs

a counterespionage casa of

interest to Headquarters and

ODEN VX

*To exploit operational leads through recruitments

debriefings,

and surveillances."

SCANTLING?

contricution

As examples of

to this objective, the

following cases are listed::

SCANTLING devoted a considerable amount

of time to his

attempts to locate Ceser

GONZALEZ Sanchez,

a known agent of a Com-

munist Country.

He followed various leads

on GONZALEZ from March

to August 1950 before

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GONZALEZ was finally identified and his

Mexico City home and business addresses were

ascertained.

for further details on this case.

32511

The preliminary investigative work on a

KUSODA case of priority interest was conducted

by SCANTLING.

During this investigation it

was necessary for SCANTLING to travel to

Aquascalientes, Guanajuato and Minatitlan to

obtain the information required by Headquarters.

See the attachments to HMMT-1416, 20 May 1960g

for the results of the investigation.

4.

In addition to his contributions to the above objec

tives,

SCANTLING is used for miscellaneous support

requirements of the Station.

For example, SCANTLING

handled several of Raymond H. GERENDE's (ps) operations

while

the latter was away fron Nexico City during August

and September 1960.

the LIJERSEY surveillance

AlsO, team since the departure

SCANTLING has been managing

of

Simon D. CLACKETT in August 1960. It is hoped that

SCANTLING can be relieved of this assignment

as soon

as the LITENPO project is

been

approved.

SCANTLING has also

used to spot and rent safe houses for various

Station operations, a valuable operational support

service.

5..

As stated in the preceeding Request for Project

Renewal, al though SCANTLING'S LIENPTY Project objectives

can never be completely fulfilled, it is the Station's

opinion that SCANTLING has made important and valuable

contributions to LIEVPTY Project objectives specifically

and

to other Station activities in genera •

SCAN TLING 's

production, meagured against monetary expenditures,

case officer time and other intangible factors, unques-

Fionably justilles his continuation as an integral part

of Project LIEMPTY.

Raynona H, GERENDE Segment (discused in relation to project

objectivea?:

irTo collect operational information pertaining to

LIMERICK personnel and physical facilities through use

of photographic base houses."

Together with

extensive photographic coverage of the LIMERICK target,

the photographic bases

also contribute other types of

operational information:

= LIMITED - This base compiles

daily logs

naicating all arrivals,

departures and,

where possible,

identities of every person

viaiting or working at the LIMERICK target.

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This information is particularly useful in keeping track of

LIMERICK personnel and assisting with the identification of

visitors to the installation.

Also, LIMITED maintains a

summary attendance list of LIMERICK employees on a daily

basis; this enables the Station quickly to ascertain the

presence or absence of an employee on any given day.

Finally, one other significant service is performed by this

base, the radio dispatching of the LIEMBRACE surveillance

team on LIMERICK personnel and targets of opportunity.

LIMITED's photographic coverage is still concentrated on

visitors, as opposed to employees, to the LIMERICK

installation. A recent example of the base's contributions to

Stacion efforts is the case of Joseph Ralph MAURI. In this

case, a LIENVOY lead indicated that an American might visit

the LIMERICK target on a certain day.

The base was alerted

to dispatch the radio-controlled surveillance team on any

person appearing to be an American.

The results of this

assignment were indicated in MEXI-6392 and several other

i?

cables. LIMITED was also able to provide photographs,

which when compared with photographs provided by Head-

quarters, left no question as to MAURI's identity.

b. LILYRIC - This base's output of high-quality clandestine

photographs has been in about the same quantity as last year.

In addition, the base operator, LIEMPTY-14, prepares weekly

reports on LIMERICK employees and their wives.

LILYRIC

also performs the assignment of noting and reporting the

license plate numbers of all cars bringing visitors to the

LIMERICK installation. LILYRIC photographs also are con-

centrated on visitors to the target, as opposed to employees.

it should be noted that LILYRIC operates for photographic

coverage during the hours from daylight to 1400 hours each

day of the week except Sunday. The LIMITED base maintains

photographic coverage from 1400 hours co darkness each day

except Sunday.

c.

LICALLA - As eported in previous correspondence, the

LICALLA base contributes to the collection of operational

information through photographic coverage of LIMERICK

employees and their families. Also, the base operator,

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LIEMPTY-9, supplies extremely worthwhile information

pertaining to the apparent positions and jobs of the target

employees. He accomplishes this objective by careful

observation and analysis. LICALLA also maintains a daily

attendance roster of all LIMERICK employees. LICALLA

coverage of the target, both photographic and physical

observations, enables the Station to keep abrest of LIMERICK

personnel changes, a vital contribution to the Station's counter-

espionage effort.

2. "To collect operational information and identify operational leads

pertaining to Station targets of opportunity. " The LIENTRAP operation,

handled by GERENDE, is the major contributor to this objective. It

has been possible for LIENTRAP to take photographs and to perform

pretext investigations in support of numerous Station activities. The

cases listed below are cited as examples:

In the case of Cesar GONZALEZ Sanchez (see I, A, 3, a, above)

LIENTRAP was able to procure photographs of GONZALEZ at his

Mexico City residence which, when compared to Headquarters

provided photographs, left no doubt that GONZALEZ was the

subject of interest to Headquarters.

b. LIENTRAP confirmed the identity of Olga CASTIL.LO de Ledon,

a frequent visitor to the LIMERICK installation and an ardent

supporter of the present Cuban regime, through a pretext

investigation of the residents of an apartment building where

CASTILLO was believed to live. Later, LIENTRAP supported the

results of the investigation with excellent photographs of the

subject.

3.

"To provide operational support to Station operations, i.e., rent

hotel rooms and apartments, and conduct counter-surveillances.

GERENDE is used frequently to rent hotel rooms and apartments for

other Stacion operations and activities. GERENDE's comprehensive

area knowledge and personal operational capabilities combine to make

him an extremely valuable Station asset for such support activities.

GERENDE also procures post otfice box letter drops for the many

Station operations requiring them.

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4. It is the Station's conclusion that the money and case officer time

expended on this segment of the LIEMPTY project is worthwhile and

should be continued in view of the quality and quantity of operational

information produced.

C. Simon D. CLACKETT Segment (discussed in relation to project

objectives) :

1. "To collect operational information and to identify operational leads

pertaining to the LIMERICK target and Station targets of opportunity."

During this project year the LIJERSEY surveillance team under the

direction of CLACKETT began contributing to the Station's support

efforts through pretext investigations and physical surveillances. Some

examples of the team's work are listed below:

Rafael TISCHLER Guzman (201-64372) is a Guatemalan

Communist which the team had under surveillance from

November 1959 to April 1960. The surveillance, together

with information acquired from other sources, eventually.

resulted in an unsuccessful recruitment attempt on TISCHLER.

b. Pericles FRANCO Ornes (201-64546) - FRANCO is a

Dominican of interest to the Station. The LIJERSEY team

devoted portions of five months, January to May 1960, collecting

information on subject through physical surveillance.

c.

Jose Maria "Chema" LOPEZ Valdizon (201-

was the

subject of a physical surveillance during May and June 1960.

LOPEZ was later deported from Mexico through the efforts

of LITEMPO-2.

d. CLACKETT and the LIJERSEY team performed numerous

pretext investigations on Station targets of opportunity and on

three separate occasions during the project year served as

a counter-surveillance escort for Station officers in other

operations.

2. CLACKETT, just prior to his resignation in August 1960, spent

about five weeks giving tradecraft and operational skills training to

LITEA-1. Although not specifically covered by the project objectives,

this ability on CLACKETT's part is considered a significant con-

tribution to the Station's support efforts.

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3. In view of CLACKETT's resignation, which was effective 31

August 1960, and the proposed transfer of the LIJERSEY team to

the LITEMPO project, this segment of the LIEMPTY project wiul

not be renewed. However, for the record, it is considered that

the CLACKETT segment of LIEMPTY was worthwhile and the

expenditure of Station assets in connection with LIJERSEY operations

were justified,

D. Relationship to Related Mission Directive Objectives:

It can readily be noted that Project LIEMPTY has provided support to

many Starion operations and in this manner has been a contributing factor

to the furtherance of the Related Mission Directive.

The project has not

produced any positive intelligence nor has it been intended that it should

do so. The project's sole purpose is to provide a mechanism for the

development of operational information in support of other Station

CHANGES

A. Simon D. CLACKETT

The unexpected resignation of CLACKETT in August 1960 has

necessitated the decision as how best to utilize the LIJERSEY surveillance

team and still benefit from the training and experience gained by the team

during the past year. As explained in the LITEMPO project outline, it was

decided that the LITEMPO Staff Agent would have the time, the need and the

requirements to handle and manage the LIJERSEY team on a regular basis;

consequently, the Station believed that such a solution to this problem would

permit the Station to continue to profit from CLACKETT's past efforts.

B. Oliver G. SCANTLING

Since CLACKETT's departure, SCANTLING has been handling the

LIJERSEY team as an interim measure pending Headquarters approval of

the LITEMPO project. SCANTLING has been expased to, and likewise

knows, only one of the team members, LIEMPTY-20. SCANTLING is

known to L-20 only by an alias.

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C. Personnel Changes

1. LIEMPTY-15 - Member of the LIJERSEY surveillance team -

Transferred to Project LITEMPO and cryptonym changed to

LITED-2.

2. LIEMPTY-16 - Member of the LIJERSEY surveillance team -

Transferred to Project LITEMPO and cryptonym changed to

LITED 3.

3. LIEMPTY-20 - Assistant Team Leader of LIJERSEY surveillance

team - Transferred to Project LITEMPO and cryptonym changed to

LITED-1.

4. LIEMPTY-25 - Most recent addition to the LIJERSEY surveillance

team. Transferred to Project LITEMPO and cryptonym changed to

LITED-4.

5. There have been no other personnel changes within the LIEMPTY

project, excepting the resignations of Simon D. CLACKETT and

Wilma J. FIORDALISI.

EFFECTIVENESS

A. General comments pertaining to the value of the project efforts to the

Station's needs - The Station is of the opinion that its operations are only

as good as the support mechanisms backstopping and contributing to them.

The availability of unilateral support agents and organizations, such as

the LIEMPTY Project, to investigate leads and to collect operational

information is an indispensable ingredient to the Station's espionage and

counterespionage objectives. The Station would be seriously handicapped

in its operational activities should the support services of such agents as

GRENDE, SCANTLING and the agents under their control be sudaenly

made unavailable.

LIMERICK Target - The basis for most of the Station's counter-

espionage activities directed against the LIMERICK target require detailed

knowledge of the identity, activities and fellow associates of LIMERICK

personnel. The LIEMPTY photographic basehouses undoubtedly provide

more of this type information than any other Station operation.

production from LIEMPT: photographic bases and from the LIENVOY

project provide the Station with the large majority of LIMERICK leads.

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C. Targets of Opportunity - The immediate availability of independent

Issets to perform investigations, photographic assignments and other

essential types of support services in connection with Station targets of

opportunity represent an operational advantage which this Station considers

highly significant. It is due to such LIEMPTY assets that an agent can be

sent to distant areas in Mexico to do investigations, that photographs can

be made of individuals and places which are of operational interest and

apartments and hotel rooms can be acquired in fictitious names in

suppori of sensitive operations and activities.

D. Although the progress and success of any support project depends

upon requirements from other Station operations, it must be concluded

that Project LIEMPTY has indeed been effective during the past project

year.

PROBLEMS

A. Security - The activities of the LICALLA base were suspended in

September 1960 as a direct result of the arrest of three KURIOT

technicians by the Cuban Government. One of the technicians was known

to have knowledge of the four LIMUST units (LICALLA is located in one

of these units) and the Station considered it appropriate to suspend photo-

graphic operations pending resolution of the situation. At this time,

there is no indication when LICALLA operations will be resumed.

The

LICALLA base operator has reported that there have been no unusual

inquiries or other suspicious actions which might indicate that LICALLA

has been compromised to LIMERICK personnel; however, such a

possibility will exist until the release of the three technicians. No

other security problems have occurred during the past year.

PLANS

A. Processing of Photographs - During the past year considerable

progress has been made in the Station's handling, ie, sorting, indexing,

identifying leads and filing, of photographs produced by the several bases.

B. Photographic Techniques - The previous LIEMPTY Project Renewal

Request indicated that the Station planned to try new techniques using

HY-PAN film in night photography. HY-PAN film was used on a trial

basis during daylight hours with yoor results. Almost invariably, prints

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from HY-PAN negatives were too grainy and, consequently, were of

little use in producing good identified shots of individuals.

of these experiments, night photography has not yet been attempted.

It should be noted that Eastman Kodak's new TRI-X PAN film, which

all bases and LIENTRAP now use, is superior to any film previously

used by the Station for clandestine photography. The quality of all

base photographs have been increased considerably as a direct result

of this new film.

C. General Comments - The Station believes that the GERENDE

segment is now operating under optimum organizational arrangments

and there are no plans for expansion contemplated at this time. It is

expected that SCANTLING will soon be relieved of his interim

responsibility for the LIJERSEY team and can concentrate more on his

investigative and casing activities. The transfer of the LIJERSEY team

to Project LITEMPO reduced Project LIEMPTY activities by an

appreciable amount. It is not planned, during the coming year, to

expand present LIEMPTY activities.

COSTS

A. Past Project Year - Station finance records indicate that Project

LIEMPTY expended $19, 120. 91 during Fiscal Year 1960(1 December

1959 - 30 June 1960) and has thus far during Fiscal Year 1961 (through

31 October 1960) expended $16, 734.69. Contract Agents salaries and

allowances paid by Headquarters bring the total expenditures for 11

months of the project year to approximately $50, 000. 00. An additional

$4, 000. 00 will be obligated during the 12th month of the project year.

This will bring total project expenditures to about $54, 000. 00 for the

entire project year.

B.

Ensuing Period - Of the total $53, 000. 00 budget, itemized below,

$31,900.00 should be expended during the remainder of Fiscal Year

1961 and the balance, $21, 100. 00, should be expended during Fiscal

Year 1962. Normal accounting procedures wüll be used for all

expenditures.

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AGENT

Raymond H, GERENDE & - 3.2743 $

Oliver G. SCANTLING C- 26803

Louise J. MACRINO 1-41452

(@$2.02 per hour)

LIEMPTY-4: 0-5/872

LIEMPTY-5C-58482

(@ $1.75 per hour

LIEMPTY-6 C-24941

LIEMPTY-7 No Salary C- 38075-

LIEMPTY-8

C- 3807+

LIEMPTY-9

6-56699

LIEMPTY-10 C-5598

LIEMPTY-11

6-4,435

LIEMPTY-12 C - 34224

LIEMPTY-13

4-46945

LIEMPTY-14

0-6168

LIEMPTY-19 C. 775?9

LIEMPTY-24 No Salary ¿-15072

Christmas bonuses all personnel

SUB-TOTAL

OPERATIONAL EXPENSES

Maintenance of MV-2279, 2284

and 2286.

Operational Travel

Procurement of Safehouses, post

office boxes and renting

automobiles.

Purchase of information,

identification documents, and

bribes.

$

U.S. $ PER ANNUM

5,040. 00

4, 560. 00.

2, 500.00

2, 000. 00

1, 500.00

2, 800.00

-0-

1, 800. 00

2, 800.00

3,

600. 00

2,

500.00

1, 800.00

1, 800.00

1, 800. 00

1, 000.00

-0-

2,500.00

$ 38, 000.00

2, 000.00

500.00

2, 000.00

2, 500.00

SUB-TOTAL

$

7,000.00

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OPERATIONAL EQUIPMENT

Repair and maintenanceof

camera equipment.

Purchase of replacement

photographic equipment and

supplies.

$

500.00

2, 000.00

SUB-TOTAL

2, 500.00

REAL ESTATE

Rent, utilities and maintenance

of following safehouses:

*LIMITED

*LICALLA

LILYRIC

$

3,000. 00

1, 500.00

1, 000.00

SUB-TOTAL

5, 500.00

GRAND TOTAL

$53,000.00

*LIMITED and LICALLA rents are returned to the Station by LIMOUSINE and

credited to Station miscellaneous receipts.

VIL. EMERGENCY CONDITIONS

As regards the requirement listed in CSI-F No. 230-60, Annex A, for

communications arrangments in the event of "Emergency Conditions.

the Station does not anticipate that this project would or could continue

to function under its present objectives. However, both principal

agents, SCANTLING and GERENDE, would very possibly be worthwhile

sources of information to maintain contact with under zuy adverse

conditions. Both of these agents identity themselfs, in terms of

ideology, motivation and perspective, more as Americans than as

Mexican nationals (which they are).

it is reasonable to assume, there-

fore, that SCANTLING and GERENDE would become valuable contacts

in any emergency situation,

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The Station is aware that the previous project renewal stated that

emergency communications arrangments were being made. The

Station has finally obtained the U.S. addresses of relatives through

whom GERENDE and SCANTLING could be contacted under most

situations. This information will be forwarded separately.

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