DISPATCH: OPERATIONAL/KUWOLF/LIHUFF.
Originator: CIA
From: CHIEF, WH DIV
To: COS MEXICO CITY
Document date: 04/25/1963
Document type: PAPER - TEXTUAL DOCUMENT

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104-10218-10039

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

DISPATCH

GASSITICITICN

SECRET

FROCESSING ACIION

HARRED SCR IMDEXIRO

10

Chief of Station, Mexico CIty

iNFa

11O INCOXIME REQUIREO

CLE QUALIFIED DESE

CAR NOCE IADDUMA

FROM

Chief, HR Diviston

SUBJICT

Operational/KUWOLF LIHUFF

ACTION REQUIRED REFERENCES

ACTION: See paras 5 & 6

REP: EMHA-20931, 22 March 1963

1.

studied fully and

thoughtfully by l Division, including a review by Oliver

G. GALBOND.

It has also been discussed with the KUHOLE

Staff officers who review such projects for approval.

After thorough consideration,

it is the consensus in

Headquarters that this project will not be approved.

. 2.

The reasons for tirís decision aro several:

a .

Tho LIHUFF Organization has sources of funds

other thad KUBARK and would conduct its activities

without support from KUBARK. A project to tund the

organtzation is therefore unnecessary.

b.

several members of the LIHUF? organization are

also members of the ulstrin organization.

recently discussed the LIStREN operation with Thomas

A. BRENT in Headquarters and is under no illusions about

ODYOKE funds, if not KUBARK funds, going into the

FISIREN operation.

Moreover, the

similarity of funding

mechanisus betweca LISIREN and LIHUFF, the siullarity of

operations, and other such parallels would, for a think-

ing lexican, be more than coincidence and

would eventually

rob LIHUFF

of any cover that it might have. The potential

security probled is not justified.

(continued)

Attachuent:

IDEN-A N/s/c

Distribution:

O&1 - COS, Mexico City w/att u/s/c

CROSS REFERENCE TO

DISPATCH SAMBOL AND NURIBER

DATE

ПКИЙ-11518

CLASSIFICATION

25 April 1963

HOS FILE NUMBER

SECRET

50-124-28/3

- RI w/at1

i - Chron

THERE ORIGINATING

WH/3/Mexicó/G. Lowe :jp

COCROLATING

OFFICE SONED

•A'E

CAFERS SAVE

an ite

EXI.

5940

Offer sToc

CWHID

DATE

16MA5

RELEASiNG

J. C. King

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CONTINUATION OF

DISPATCH

CLASSIFICATION

SECRET

DISPATCH STMOOL AND NUMBCA

1LW-11518

station.

d. The Project would tend to put too much reliance

on conservative olemente, around whom we have already

built a sizeable proportion of our progran 1n Mexico.

Headquarters does not wish to expand further our involvo-

ment with these elenents.

He have noted, in both LIHUFf and LISIREN, the

reluctance of lexican busineszmen to contribute to anti-

communist progrums because they cannot deduct the contri-

butions from their income taxes.

As a matter of principle,

we are moved to ask why ODYOKE funds should be spent in

any program--those prinary objective, after all, is to

capitalistic system under which these

Mexican industrialists hold and increase their al{luence~

if those who will benefit most materially and most

it are unwilling to cortribute without

some recoMpense.

Should the PBPRIME taxpayer assume

the burden of helping those who are unwilling to share

that burden?

We feel he should not when he bears such

& heavy burden all around the world.

The lack of a formal project relationship would not

prevent the Station fron usiag the LIHUFF orgauiztion from

time to time on a targets-of-opportunity basis, as has been

done in the past.

In such cases the Station could use its

D & TO funds.

This use should be limited, and the outlay

of funds should be minimized as much as possible.

The contribution of Station funds for the publication

of Identity A may continue to the end of PY 63.

Beginning

1 July 1963 ve would like the Station to phase out this

expense at whatever rate seems most suitable, but the phase

out should be completed by 31 December 1963.

Purther contri-

butions cannot be authorized beyond that date.

Please inform us of the Station's tutentions regarding

LIRUFF-1.

He can be kept as a cutout to LIhurt, but with the

curtailment of KUBARK's connection with hiluff, his services

wIll not be used enough to justify the salary that has been

proposed.

The Station may either reduce his salary or use

him more fully on otber operations

in order to justify it.

The latter, of course, is contingent on his suitability---

In terms of security considerations, his aptitude for certain

too serve serenate a tee station

time available, and

cannot make

profitable use of LIHUFF-1 in other operations, it may termin-

ate him at its discretion.

If the Station plans to keep

LIHUFF-1, he should be placed undor a project as soon as uls

operational use 1s determinea.

If it is not feasible to put

him under the project that he

will be working on, then a

separate project should be written to cover him.

KND OF DISPATCH

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