DISPATCH: OPERATIONAL/LIHUFF FIELD PROJECT OUTLINE.
Originator: CIA
From: COS MEXICO CITY
To: CHIEF, WH DIV
Document date: 03/20/1963
Document type: PAPER - TEXTUAL DOCUMENT

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104-10218-10040

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

DISPATCH

Chief, WH Division

SECRET KAPOR

PROCESSING

ACKN

УСТАНО ВʼЯ ІВОПО

DO ONLINE MIGUIRIO

HERBURNA:

СОДИПІТ. 'АМ

Chief of Station. Mexico City

Operational, LIHUFE Fiell Project Ourtine

ACTION REQUIRLD. REFUNDGES

REFERENCE: A. DiR-45153

B. HAMW -11321, 27 Feb d5

1.

Enclosed for Heajquarters" aproval is the meld project outline for

LIHUFF. Detailed information rejaring ltET is being forwarded by

separate disparch with jstification and a rugiest satike be hired as a

contract agent.

2. The Station cantinues la attempt to fat contritations for LIHUFF

from private firms. There has been some success in this effort, but this

assistance has been on a spor basia.

(Is Heriquarers is asare, Mexicans

contributing to such an organization camot berefis by far rejuctious.) The

funds not provided to LIHUFF by te Stetion tume frain te group of wealthy

backers listed as Identity D. We shall conte ts stimulate private support,

and will advise Headquarters of any renar, significam contributions.

Stillars costis

Enclosures:

1. Odd numbered pajes, b/=

2. Even numbered pages, u/s/c

3. Appendix 1, u/s/c

4. Appendix II, u/5/c

5. Magazines, u/s/c

Distribution eels (oris l 1 copies project,

"CROSSRETERENCETO

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50-124-2811

DATE DISTED

20 Mar 1963

DS--MYTE59K301 AND NURABER

DATE DESPAIRED

22 Mar 1963

FMB1А-20931

LEIDQIUARTERS FILE ILALBER

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SECRET, KAPOK

CRYPTONIN LIHUEE

STATION

MEXICO CITY

PROTECT OUTLINE

FIELD CASE OFFICE:

Nield lustes

CHIEF OF STATION KOREANEGRItS

Ise attached project is presenter far approval.

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IS DUFY

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A. Identification

Mexico City, Mexico -- Political Action. See C. below for other

countries which may become involved:

B. Objectives:

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

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

presext efforts in provincial Mexico, and, to some extent, in otber

corntries. To obtain a measure of significant control over the

organization through this continued funding. To guide the group in

increasingly more efficient methods of lighting Communism and fostering

pro-vester programs, such as the Alliance for Progress: To

accorplish the following objectives in the Related Mission Directive:

Priority A. Z. a, Co d. e, f. Bi Priority B. I. a, b, d.

C. Background.

WHUFF (Identity A) was founded in 1953 under the auspices of a

group of Mexican bankers, industrialists, and merchants to spread the

prinápies of free enterprise and private initiative. Since its founding.

the group has arranged a number of meetings and congresses designed

to ergiore the dangers of Communism (particularly in its economic

aspers) and hyper-nationalism. It has also financed the publication of

parzalets, bulletins on economic matters, and bookig. The director of

this frOLI (LIHUFF-2) received support from LIHUFF-l and the business

fire which LIHUFF-l headed in Mexico until 31 December 1962 when this

company decided to give up its franchise in Mexico.

In June 1960 WHUFF-l visited the ODACID Political Counselor and

regrested an ODACID contact with LIHUFF-2's organization. Subsequently,

Chis, ODACID Mexico, asked the COS, KUBARK Mexico, to explore the

possibility of giving financial help to the group headed by LIHUFF-2. In

mic-August 1962 (HMMS-2530 RYBAT), Oliver G. GALBOND advised the

Merica Station that the group had been receiving partial financial aid

from a group of PBPRIME business corporations (solicited by Mr. Heury

Holland, now deceased) and that KUBARK Headquarters had also provided

some financial assistance through this channel. After the death of

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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

(Identity B). The local ODACID Chief was consulted. He replied that he

thought LIHUFF-2 was one of the few economists in Mexico fighting

Conmunism. The ODACID Chief also said that everything possible

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

1926, 30 August 1962).

The LIHUFF organization has its offices in Mexico City, with

associated offices in Salvador ard Guatemala, and working contacts in

the provinces of Mexico and in several capital cities of Latin America.

LIHUFF devotes its efforts to selling the free enterprise system as

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

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

trend in Mexico is towards more government intervention.

LIHUFF maintains an excellent library of source materials on

economics and free enterprise, which is open to interested researchers.

LIHUFF publishes regularly a considerable amount of materials,

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

samples of LIHUFF publications.

The group is extremely active in the student field, in the provinces

as well as in the capital. It supports student publications; has organized

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

political action.

LIHUFF also prepares and sends out to provincial newspapers

editorials featuring anti-Communist themes. In the last four years

LIHUFF has collected ó5 loose-leaf binders filled with editorial clips

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

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

LIHUFF-2, Director of LIHUFF, has shown completed dedication

to his program. The members of LIHUFF, especially the students,

have demonstrated courage and conspetence in a variety of operations.

D. Operational Assets.

1. Personnel.

LIHUFF -1 is a 47 year old PBPRIME businessman who acts as a

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cut-out and operational adviser to LIHUFF-2, the Director of the group.

LIHUFF-1 worked for KUBARK in Panama from 1947 until April 1949

when he returned to Mexico. He was in contact socially with members

of the Mexico Station and in November 1962 was hired for the above

work. Biographical data is being forwarded via separate dispatch. He

is contacted by Willard C. CURTIS or Michael C. CHOADEN. Training

is not required since LIHUFF -I has been in intelligence work from his

service with PBPRIME military intelligence during WWI.

He was

engaged to work for PBPRIME military intelligence in Mexico until

recently. He knows that he is working for KUBARK. HMMW-11040 of

25 October 19i2 granted OA for LIHUFF -I.

LIHUFF-2 is a 46 year old Mexican lawyer. He is also a well known

economist who directs an economic research organization in Mexico and

other Latin American countries. He is met by LIHUFF-1. LIHUFF-2

probably suspects that funds may come to him from ODYOKS; however,

cover used is that the money is from private bisiness groups. He was

granted an OA on 26 October 1962 (HMMW-l1089 of 9 November 1962).

2. Mechanisme..

a. The principal officers of the Identity A group are listed in

Appendix I (separate cover enclosure No. 3). Other details of the

organization are included in C. Background above.

b. The LIHUFF organization frequently and regularly makes

press placements in all of Mexico City's leading newspapers. Its

editorial features are also regularly accepted by provincial publications.

Radio and television placement is on an irregular basis.

(1) General propaganda and political actions of LIHUFF

will be influenced and guidedby the Station for its benefit.

(2) LIHUFF student operations have already bees

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

(3) The LIHUFF editorial service for provincial news-

papers has been used by the Station.

(4) The press-placement capabilities of LIHUFF in:

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

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

(5) LIHUFF's international connections, especially his

associated offices in Salvador and Guatemala, will be exploited.

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(6) The Station will call on LIHUFF to fill research needs.

E. Security Evaluation.

The LIHUFF organization is funded through a cut-out in such a

manner that KUBARK participation is concealed. It is not connected in

any way with any other KUBARK operation.

F. Coordination.

All coordination with other PBPRIME elements will be handled by

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

In the past, ODACID Chief Mexico asked COS Mexico to assist the group

• financially. Also, the operational use of LIHUFF-I was cleared with

PBPRIME military intelligence when it was learned that they also had an

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

at the pre ent time.

G. Costs.

1. It is requested that the following estimates be approved for use

in the LIHUFF project for the period 1 May 1963 through 30 April 1964:

FY 1963

FY 1964

LIHUFF-1 Salary

Identity publication

Identity student organization

Total

$1,000.

$ 5,000.

2, 400.

12, 000.

1, 600.

8, 000.

$5,000.

$25,000.

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

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

possibility that the LIHUFF may begin to operate solely on Station funds.

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

complete, classic control.

2. Foreign Currency.

There are no specal requirements for foreign currency.

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3. Commitments.

No permanent commitments have been made.

4. Funding and Accountability.

Funds will be paid to LIHUFF-) by COS Mexico. Receipts wil

e obtained. The money will be paid in cash in local currency. Ther

are no unusual funding and accountability requirements.

H. Annexes.

1. Administrative Plan or Fiscal Annex.

It is not believed that this annex is required for the LIHUFF

Project.

2. Communications.

There are no communications requirements for the present time.

3. Technical Support.

There are no' technical support requirements for this project.

4. Logistics.

There are no logistical requirements for this project.

5. Intelligence.

required pertional intelligence from other BPRIME agencies is not

I. Emergency Conditione.

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

living and working in Mexico in the event of emergency anti-ODYOKE

ituations; however, he probably would not outright attack his own govern

nent. It is likely that the group locally might lose its elfectiveness o

cease to function in Mexico. However, a change in the Mexican political

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scene may not affect the f-oup': silcos in other Latin American countries.

In the event of an emergency situation, contaci can be made by the

COS with either LIHUFF-I or LIHUFF-2.

NOTE: For a note on the production and some successes of the LIHUFF

organization, see Appendix Il (separate cover enclosure 4).

13.

serenica.

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Enclosure 3 to HMMA-

20931 (UNDER SEPARATE

COVER)

APPENDOE:

Identities:

A. Instituto de Investigaciones Sociales I Ecaromicas, A. C.

B. ESPEJO, an economics juiral siici stungly supports the

free enterprise system.

C. M.U.R.O.

D. Principal Officers of I aboves

Director. LiE. AgEstiN JAWEID I-

Lic. Caras SINCE=I BEJORADA

Enrique UHTEDEE

HUGS SALINES

LiC. GustaTOR HELESCO

ing. Jase RIVERA &

LiC. PEdED ASPE SEES

Ambal de LTERBIDE

MAriAnO R SAREE

Inz. JasE de la MaCCHEs

Jazado PEREZ Ba-aso

LiC. AFITO JUANO I LIquiE

Lic. Castas ESPEI ie LierEI

Ernesto. I. EMESTEE

Gullera GUIJAZJO ERTiS

JOSE A, ISCENDENT

Lic. Eduardo FRESTO Lopez

Antonio E, HODRICE2Z

Tamas G. COERASE

Lic, Amania FEREL E=tE=.

Adalfo I, RIVEROSI

FEderiCo SANCHEZ FORETE

Clemente SEETA SarTer

Felix DILZ Girza

Enrique AYALA MecIa

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ENCA A 36H19187-70931

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The fães a the Slexico Station have been checked for derogatory

inforitation on the names above. There was no derogatory information

an anyone ai tient except FediTico SANCHEZ Fogarty. Ellorts will be

made via LiFtST-it get him removed from the organization.

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Enclosure 4 to HMMA-

20931 (UNDER SEPARATE

COVER)

APPENDIX II

Ibe Organization and its Director have:

a. Furnished the Mexico City Slation with index cards and

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

although almost all of these Communists were already known to this

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

to Station knowledge.

• b. Organized a nationwide right-wing, anti-Communist and

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

Movimiento Universitaria Renovadora Orientación (MURO) publishes

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

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

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

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

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

for ousting Communist rectors at these universities.

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

overwhelming odds and advantages held bj pro-Marxist economists and

their teachings in Mexico. Chief ODACID believes the Director and the

organization are most useful in this regard.

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

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

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

e. Continuously published pro-PBPRIME, pro-free enterprise

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

in the provincial press of Mexico.

f. Attempted to spread to other Latin American countries,

and to coordinate with appropriate organizations and individuals in

these countries, anti-Marxist economic theories.

§. Some examples of production from this organization are:

(1) HMMA-20947 of 14 March 1963; (2) HMMA-20306 of 3 December 1962;

(3) HMMI-3106 of 28 September 1962; (4) HMMA-19296 of 6 July 1962;

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

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