PROJECT REVIEW AND PROJECT OUTLINE (PARTS 1 AND II)
Agency: CIA
Originator: CIA
Document date: 6/1/63
Document type: PAPER-TEXTUAL DOCUMENT

## Page 1

104-10413-10052

DESENSITIZED

per CSM 43-43

PROJECT REVIEW AND PROJECT OUTLINE (PARTS I AND II)

CRYPTONYM LIFEAT

CASE OFFICER

remy L.W

VIARCOS

STATION

MEXICO CITY

CHIEF OF STATION

Willard C. CURTIS

0z

remove from Project, DysAiie

66. 363

JOB #

Box:

INCL

1-AMMA: 1912'%

INV

GS COPY

6 - 32/

---

## Page 2

13-00000

PROJECT LIFEAT

PROJECT REVIEW

Product of the Project

A. Soviet Coverage

As noted in last year's Project LIFEAT renewal request, LIFEAT coverage

of the official Soviet installation was discontinued on 22 June 1960 when the.

parallel(liaison) project LIENVOY assumed coverage of this target. In early

January 1962 LIFEAT undertook coverage of the home phones of three of the

most active Soviet Intelligence officers. This was in response to the con-

tinuing Station Cl program which includes the monitoring of Soviet contacts,

and the guidance received from KUDESK Staff at the time of the last LIFEAT

renewal. As of this date, this coverage has not been active for sufficient

time to fully evaluate its usefulness. However, it is believed that such

coverage has the potential to add materially to the Station's effort in the CI

field. Although not designed to provide positive intelligence, some by-product

of this type has been obtained. Samples are as follows:

HMM-6364, 8 May 1962 (Briefing of Mexican Pro-Marxist Journalist

by Soviet Embassy)

HMM-6382, 15 May 1962 (Mexican Traveller to the USSR)

HMM-6376, 11 May 1962 (Refutation of Rumors that Soviet Cosmonaut

TITOV will visit Mexico)

B. Polish Embassy

LIFEAT has remained the primary source of information on this target and the

only successful, continuing penetration of the target. The information provided

to the interested Case Officer has in the past been described as "unique" and

"invaluable". This description holds with equal emphasis for the present as

well as the past. Selective examples of the valuable positive intelligence pro-

duct of this coverage are:

HMMA- 17448, 28 July 1961 (Henryk POTASZ)

HMMA -17647, (LIFEAT/LAURICLE), 25 August 1961

HMMA- 17694, 1 September 1961 (Irena Halina ZORAWSKA)

HMMA- 17876, 29 September 1961 (Movement of Polish Nationals)

B0P%

---

## Page 3

13-00000

- 2-

HMMA -18058, 27 October 1961 (Satellite Trade in Mexico)

HMMA-18074, 31 October 1961 (Activities of Polish Embassies

in Mexico and Brazil)

HMMA-18913, 27 April 1962 (RYBAT/Eugeniusz SKOTNICKI)

HMMA -18915, 27 April 1962 (RYBAT/Eugeniusz SKOTNICKI)

•HMM-5743, 7 July 1961 (Possible Purchase of Ships from Poland)

HMM-5894, 14 September 1961 (Trade Between Mexico and Poland)

HMM-5921, 26 September 1961 (Polish Plans to Buy Zinc from Mexico)

C. Cuban Coverage

LIFEAT was able to provide coverage of major firms dealing in U.S. goods

transshipment via Mexico to Cuba.

This technical operation not only pro-

vided initial leads which alerted the Station to these companies, but also

was able to provide continuing Information on the daily activities of the com-

panies involved. Coverage of certain Cuban personages arranging for illegal

transshipment of U.S. goods to Cuba was also provided including their con-

tacts and general activities.

Samples of the positive intelligence production

from this Cuban commercial coverage are as follows:

HMMA- 18073, 31 October 1961 (Ruben SAUREZ Y Alvarez,

Representative in Mexico of the Cuban Bank of Foreign.

Commerce)

HMMA - 18538, 2 February 1962 (Cuban Commercial Activities)

HMM-5883, 26 Sepiember I'961 (Cuban Commercial Activities)

HMM-5915, 22 September 1961 (Transcontinental, S. A.)

HMM- 6012, 14 November 1961 (Mexican Firm Shipping U.S. Goods

to Cuba)

HMM-6220, 27 February 1962 (Lorenzo L. SAUNDERS, Vice Presiden!

of Transcontinental, S. A.)

D

Communists in Mexico

si, most of the targets in this group have been covered at the

'ENVY, and the raw take has been partially processed by them.

od July 1961 through May 1962, approximately 680 reels of

1 to local ODENVY for their processing. The most valuabli

ed from the targets in this field continues to deal with con

reneral activities of the American Communist Group in

---

## Page 4

13-00000

-3-

Typical examples of the reporting based on LIFEAT coverage of the ACGM

are:

HMMA -17318, 3 July 1961 (Albert MALTZ)

HMMA - 17388, 14 July 1961 (Enos Regnet WICHER, Maria WICHER)

HMMA - 17389, 14 July 1961 (Carl SEBORER)

HMMA - 17419, 21 July 1961 (Clarina OVERGAARD, Anders OVERGAAR!

HMMA - 17455, 25 July 1961 (Dalton TRUMBO, Cleo TRUMBO)

HMMA - 17611, 18 August 1961 (Noah SEBORER/Albert MALTZ/

Charles SMALL)

HMMA -17760, 12 September 1961 (Maurice ZElTLIN)

HMMA - 17806, 19 September 1961 (Albert MALTZ)

HMMA - 17855, 26 September 1961 (U.S. Citizens Travel to Cuba)

HMMA -17860, 29 September 1961 (Albert MALTZ)

HMMA - 18097, 3 November 1961 (Charles SMALL)

HMMA -18492, 23 January 1962 (Albert MALTZ/Noah SEBORER/

Charles SMALL)

HMMA - 18827, 10 April 1962 (Albert MALTZ/Noah SEBORER/

Charles SMALL)

E.

Exile and Revolutionary. Activities

LIFEAT continues to provide information on the exile and revolutionary group

active in Mexico, which information is of the greatest value to the Station and

not available from other sources. The emphasis of the LIFEAT effort in this

area has been directed toward coverage of Nicaraguan, Guatemalan, and mori

recently Spanish Republican exiles. The product has been most rewarding in :

coverage. Examples of productivity in this past project year:

HMMA - 17489, 4 August 1961 (Alejandro GALINDO)

IMMA- 18420, 5 January 1962 (Teodora MARTEN Rodriguez)

MMA - 18468, 16 January 1962 (Travel of Salvadorans to Cuba)

M-5920, 26 September 1961 (Activities of Nicaraguan Exiles

in Mexico)

5142, 18 January 1962 (Plans of Guatemalan Army Officers

Attempt Coup)

'1, 17 February 1962 (Guatemalan Revolutionary Activity)

2 March 1962 (Contacts of Juan Jose AREVALO Bermejo

ico City)

• April 1962 (Return to El Salvador of Colonel Oscar

pril 1962 (Contacts of Juan Jose AREVALO Bermejo)

---

## Page 5

13-00000

- 4-

HMM-6344, 1 May 1962 (Activities of Spanish Republicans in Exile)

HMM-6349, 4 May 1962 (Views of Juan Jose AREVALO on Peruvian

Presidential Candidate)

HMM-6359, 4 May 1962 (Contact Between Claudio SANCHEZ de

Albornoz, President of the Council of Spanish Republic, and

Juan Simeon VIDARTE, Spanish Exile in Mexico)

HMM-6379, 11 May 1962 (Opinion of Spanish Republican Exiles on

Current Strikes in Spain)

Counter- Intelligence Information

By its latest Related Mission Directive, Mexico City Station's major respon-

sibilities continue to lie in the field of CI/CE matters. LIFEAT was able to

provide a valuable contribution in the attainment of the Station's objectives in

this field. Coverage included that on Carlos Humberto ILLESCAS, who is

acting in a covert liaison capacity between the CP and the Soviet Embassy in

Mexico City. Besides the continuing operational support in the CI/CE field,

the following informational reporting was provided:

HMM-5742, 7 July 1961 (Travel of Mexican Leftists Behind Iron

Curtain)

HMM-5836, 18 August 1961 (Activities of Mexican Student of the

University of Peoples' Friendship)

HMM-5977, 24 October 1961 (Interview of Prominent Marxlst with

Polish Conselor)

HMM-6322, 20 April 1962 (Contacts between Carlos FUENTES Macias,

Mexican Communist Writer, and Polish Diplomats)

HMM-6337, 27 April 1962 (Activities of Ernesto AYALA Mercado,

Bolivian Ambassador to Mexico)

HMM-6377, 11 May 1962 (Scholarship for Study in Warsaw to Jorge

TAMAYO, JI., Mexican Marxist Intellectual).

G. Operational Support and Leads Provided other Station Operations

During the past project year LIFEAT continued actively supporting Mexico City

Station through production of leads unobtainable through other assets and gen-

erally providing other Station operations the secure support only available

through a [unilateraDtelephone tap operation. The following is a selected list,

together with a brief description, of major contributions of operational support

and leads provided through LIFEAT:

---

## Page 6

13-00000

- 5 -

LIFEAT/Cuban: The most noteworthy LIFEAT contribution to Station efforts

in the Cuban operations field was that of providing leads pinpointing the acti-

vities of Transcontinental, S. A. in the illegal transshipment of U.S. materials

to Cuba via Mexico. LIFEAT was able to continue coverage of the activities

lof this company despite the efforts of the company to lose itself in the Mexican

business community by changing the name it operated under to Inversiones

Mexicanas, S. A. and changing its location and telephone number. Valuable

information on the commercial commodities needed by the Castro regime,

methods and contacts used in their procurement, and information on the con-

tacts of the Cuban Embassy in Mexico were obtained.

LIFEAT/Czechoslovakian: LIFEAT coverage of the home phones of two Czech

intelligence officers provided some leads to their contacts, but more impor-

tantly, provided greater security to KUBAR K when one of their CIS officers,

Miloslav CECH, was singled out for a defection attempt. Through LIFEAT

"livemonitoring" of both the original and followup defection attempts, the

KUBARK assets were provided maximum protection from possible attempts

by CECH to alert his coworkers or arrange entrapment of the KUBARK per-

sonnel involved.

LIFEAT/Polish: Probably the most "classic" example of the use of a telephone

tap in providing a lead which could develop into a vital penetration of the Polisa

intelligence occurred recently in the BEKNAVE BECHICK operation. LIFEAT

provided the initial leads which made the Station aware of the possibilities of an

operation and has continued to provide vital information for Station's develop-

ment of the operation. It is the Station's opinion that this one instance of service

by LIFEAT was well worth the cost of the entire project for the year. (Full

information forwarded in MEXI 0462 and MEXI 0463). Also of great interest

to the Station were the LIFEAT provided leads which revealed Jan SLUSARZ,

Attache of the Polish Embassy in Mexico, had purchased an automobile which

had been stolen in the U.S. and driven to Mexico. In this operation, in which

a defection attempt was considered, LIFEAT provided not only the initial leads,

but also daily operational information vital to the Station's efforts in this case.

LIFEAT/ Yugoslavian: In this coverage of the Yugoslavian Embassy LIFEAT is

providing the basic data necessary in establishing operations against this target.

Since the Station is expanding its coverage of Yugoslavian activities, much vital

data on personalities, contacis, and services obtained by the target establish-

ment must be provided. It is this exact type of coverage that LIFEAT is geared

to provide in addition to the operational leads which will be forthcoming as this

coverage progresses. The interested case officer, noting LIFEAT is his only

present source of information, feels the take which LIFEAT provides and will

---

## Page 7

13-00000

continue to provide in this area is vital and basic to the mounting of any

operations against the Yugoslav target.

LIFEAT/Soviet/Double Agent: LIFEAT support has provided needed sup-

porting information in backing Station double agent operations. In this area

the success of the operation is obviously dependent upon the veracity of the

agent. LIFEAT provides information which enables the interested case

officer to determine the veracity of the agent involved. LIFEAT also provides

a needed check upon the activities of the double agent.

LIFEAT/Spanish Republican: LIFEAT coverage of Spanish Republican exiles

in Mexico City have enabled the Station to monitor the activities of the various

groupings of the exiles, including the projected attempt on the life of the

senior ODACID official in Mexico. LIFEAT has covered personalities of exile

factions both involved in planning this attempt and those opposed to it. Covera

of targets in this area also enables the Station to keep abreast of the plans and

activities of the various groups which make up the Spanish Republican exile

community in Mexico City.

LIFEAT/CI-CE Coverage: LIFEAT leads in this area are exploited in the re-

porting of travel of important Communists, particularly to Cuba and Iron

Curtain countries, and the travel of U.S, citizens, especially Communists and

Lettists, to Cuba. Through coverage of the American Communist Group in

Mexico (ACGM) LIFEAT has provided ODENVY with an increasing amount of

information on the leftist activities of relatives and friends of the ACGM who

reside in the U.S. One of the noteable items in this regard is providing data

on the overt and covert efforts of the blacklisted "Hollywood Ten" to regain the

former status in the U.S. film industry.

Finally, and certainly not of least importance, Station security has been enhan:

through LIFEAT periodic coverage of former Station assets, like LIVESTOCK.

and LIVESTOCK-2, who could be a danger to particular Station operations or

personnel. Monitoring of certain terminated agents is considered especially

valuable where these agents were involved in the more sensitive operations.

H. Conclusion

It is the opinion of the Mexico City Station that the support provided other Stati

operations, the CI/CE information and leads, and the ability of the unilateral

LIFEAT operation to cover sensitive targets without revealing Station interest

---

## Page 8

13-00000

-7 -

to the Liaison forces, well justify the expenditure of funds, time, personnel,

and security risk. As it has been noted in the past, that even with the Station's

envolvement in the parallel, but(liaison, LIENVOY operation, a change in

attitude by the present (local government, administrationor a change in(govern-

ment administrations could end KUBARK participation in that/liaison/project.

For that reason, LIFEAT, in addition to maintaining its present heavy coverage,

must be available to. once again undertake coverage of the official Soviet and

Czech official targets in Mexico City. Therefore, LIFEAT's present orientation.

though toward supporting Station operations and CI/CE mission rather than cowar

targets which would provide positive intelligence, leaves it readily available for.

recall into the Soviet-Czech coverage. It is the Station's firm opinion that the

LIFEAT project provides a substantial and vital contribution in fulfilling the

several priority objectives of the Station's Related Mission Directive,

1.

There is attached a list of the HMMs produced from LIFEAT provided material

during the period July 1961 through May 1962 as a by-product of the project's

prime responsibility of providing support to Station operations.

Il. Progress of the Operation

The objectives of the LIFEAT Project are of a continuing nature and are there-

fore not considered for fulfillment during any given period of time.. For this

reason percentage figures as to completion of project objectives cannot be drawn.

However, an indication of the coverage provided in working toward fulfillment

of the objectives can be noted in that 14.000 pages of raw text were produced

in the period July 1961 through May 1962. LIFEAT has been in daily operation

during the review period with the average number of lines covered per month

being 20, with a high in March 1962 of 28 lines covered.

Ill. Planning for the Future

As was indicated at the time of the last project renewal, LIFEAT hopes to re-

main uncommitted to coverages that require the expenditure of a great portion

of LIFEAT resources but provide coverage of but one target... such as Soviet

Embassy coverage. It is added emphatically, however, that should the need aris

reveal its interest or operations to the [liaison forces involved in the LIENVOY

operation.

As to particular areas of operations, the Station has hopes of employing

LIFEAT assets in

"hot mike operations which require access to telephone

---

## Page 9

13-00000

CentralSland cables. The feasibility of using LIFEAT in this type of operation

has already been proven, in a recent operation with the (LIERODE) installation

(as a target.

Seven reels of 'hot mike)' take were obtained in test runs on

checking both the operation (including installation of the 'miked' instrument

in the office of thelhead of the)LIERODE) official installation) and the equipmer

which was of radical design and conceived and built by the KURIOT technician

assigned to Mexico City Station under deep cover. Unfortunately, before con

tinuous operation could get underway, the LIERODE installation decided upon

complete renovation of its telephone system, including the installation of a

switchboard. This, at least temporarily, precludes further operation agains:

this particular target, unless a direct line is installed there. However, it is

the intention of the Station to attempt coverage of other targets of interest. In

these plans LIFEAT plays the key role in installation, line and series cross

ma intenance, basehouse procurement and maintenance, and processing of tal:

From the brief test runs via the LIERODE operation noted above, it is believ.

that 'trot mike" operations, supported and maintained by LIFEAT, can greatl

the Station in its coverage of responsibilities under its present Related Missi

Directive.

Performance of Agents

The overall performance of all agents employed in the LIFEAT complex con-

tinued to be good during the period of the project review, with security being

stressed in all phases of the operation. No security problems were encounte:

which were not solved by the personnel involved. Since the success of the

LIFEAT operation depends largely upon the security of its personnel, Head-

quarters clearances and evaluation of new personnel will continue to be sougi

on those new additions who pass a strict field assessment.

Expenditures

Approval for renewal of Project LIFEAT was granted 8 September 1961 for F

1962 in the amount of $98, 973. 00. The proposed budget for FY 1963 is broki

do, in the che ed a ject. Outline Renewal Request, Part Il, and tota:

VI. Status of Commitments

There are no commitments other than those noted in the project outline subm:

herewith and in the individuals contracts and oral agreements (memoranda of •

oral agreements were forwarded as necessary) of the various LIFEAT perso

COORDINATING

WH/3/Mexi/Chrono

RID/AN

ола3

OFFICE SYMBOL

DATE

OFFICER'S NAME

---