PROJECT RENEWAL.
Originator: CIA
From: CHIEF OF STATION
To: C/WH DIVISION
Document date: 10/31/1961
Document type: PAPER - TEXTUAL DOCUMENT

## Page 1

AAAAn

1104-10052-10101

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

DISPATCH

TO

iNFO

: Chief, WH Division

FROM

SUBJECT

_Chief of Station, Mexico City

- LIEMPTY Project Renewal

ACTION REQUIRED

- Renewal of Project.

REFERENCE(S)

CLASSIFICATION

SECRET STOK

DISPATCH SYMBOL AND NO.

HMMA -17999

2-1930

HEADQUARTERS FILE NO.

50-6-74/1

DATE

31 October 1961

RE:

'"43-3" - (CHECK "" ONE)

MARKED

FOR INDEXING

NO INDEXING REQUIRED

INDEXING CAN BE JUDGED

BY QUALIFIED HQ. DESK ONLY

Attached are the requisite number of copies of the Request for Renewal

of Project LIEMPTY.

Heard surts

30 October 1961

RECORDS OFFICER STAND

The following agtion

Attachment:

authoriced:

As stated above.

Even pages herewith.

Odd pages under separate cover.

Signed:-

Desi falses

R. 0. #0S0 - UnSI LEN/1/R

Distribution:

3 → WHD (with five copies of attachment) :

I?

destruction,

cite

2 - Files (with one copy of attachment)

reasons ana

coordinate

13 appropriate.

2828

FORM

10.9/

(40)

53

USE PREVIOUS EDITION.

51-29.

51-28A

AND 51-29

WHICH ARE OBSOLETE.

+ X421

CLASSiFICATION

SECRET/BABUK

5005-24%

PAGE NO.

CONTINUED

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ORGANIZATIONAL

ELEMENT

C/Wн/3/Mexico

C/NH/3

WH/B&E

WH/PO/A

C/NH

SECRET

(When Filled In)

PROJECT ACTION

PROJECT CRYPTONYM

LIEMPTY

TYPE OF

ACTION

NEW PROJECT

APPROVAL

CA

WH

AMENDMENT

NO.

FIELD STATION

Mexico City

RENEWAL

FY 1962

BRANCH

DESK Mexico

3

CASE

OFFICER

WAENSTON

TERMINATION

J. Go Heyn

ROOM NO.

BUILDING

1013

Barton Hall

CONCURRENCES OF DIVISION

EXTENSION

2555/3162

TYPED NAME

(And signaturo)

DATE

COPYI

NO.

MEMORANDUM. ATTACHED

YES

NO

DATE

John C. Heyn

Ned P. Holman

Robert De Carter

clarke

• Wo Simmons

J. C. King

bry

andfillelmo

Bibet > Calú

Киіл

2 2 NOV 1961

Bert)

12-5-661

CONCURRENCES OF OTHER COMPONENTS

PER 100

APPROVAL

TOTAL AMOUNT

FROM

1 December 1961

APPROVING AUTHORITY

DDP/FG/FI/Proj

30 November 1962 49,500

SIGNATURE

6-16 848

SECRET

FY

196 2

196 3

$

$

AMOUNT

29,500

20,000

50-6-7411

(5)

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•1'

DD/PQ:06234

SECHET

MEMORAIDUC FOR: Chief

of Operations, DD/2

SUBJEOT

LIEUPTY (Renewal)

WH = Mexico City

The attached projaet.

originating in WH Division,

s presented for renewal for the period 1 December 19ối

through 30 lovenber 1962. This project provides for poysical

and

paotographic aurveillange operations in support of

Mexico City Station operations, particularly those directea

against soviet personnel and installations.

Authority is requested to obligate 549,500 from the

DD/P-wHi Division budget:

329,500 in fiscal year

1962, and

62o,000 in fiscal year 1963 subject to the availability of

estimate includes. $39,500 for salaries of three

contract agents

and eleven indagenous agents; 53.300 for o0-

rational expenses,

includine QP vchicle operation and min-

post gifice boxes,

vehicles; 51y00e toi

repair, maintenence, and replacement of photogrephie equip-

nent; and 45,500 for mintenance on three sarehouses.

activitias in the past period.

The atbached request for renewal discussed project

Contract Acent Oliver G.

the primary source of information on recidences

o?

Soviet

bage: berconnel; has pror.ced intertiracre chi ormation on

several cases or ci interero; and has trained surveillance:

agrets in Honterney.

Me also bancled the unice surveillance

Saam during the side contract Agenu Simon D. ClAurora Rurec-

was abrant Iron lexico.

The project sechent under the

tion of contract Agent Ragnond M. GORENDE (p) continueo to

collect

aacnational

intormation on the Soviet magsi

photographic

surreillance: and to srovide operatio

through

support

..

50-6-9411

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to the station in the form of rental oi

safe-quarters, counter-

surverblance, and procuring and servicing lotter drops.

The

Division feels that both aspecte of the project are worthwhile

to the station's activities. It considers that the project is

now operating at optimum size and does not plan to expand.. In

the coming period efforts will be made to refine and better.

use. the existing organizational arrangements.

4.

of this project.

Appropriate Special Staff elements recommend renewal

5. I recommend

renewal of Project LIEMPTY as presented.

HINES

Chief, DDP/PG

Approved:

COP-D

10 JAN 1962

Date

Attachments:

Projecü Outline. LIEVIPTY

FI Memorandum

Staff Coordination:

For

FI Start -S/J.

Baine

For Cl StarI

For

CCG

-s/F.

Hughes

-s/J.

Southard

50-6-94/1

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(

MEMORANDUM FOR: Chief of Operations, DD/P

THROUGH:

DDP/PG

SUBJECT:

Project I TEMPTY

Foreign Intelligerce Staff reconnends approval of the

renewal of Project IIEMPTY.

Я Baur

р

W. LLOYD GEORGE

Chief

Foreign Intelligence

Attachment

Project

50-6-7411

02830

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21 November 1961

LIEMPTY Project Renewal Request

Lo It is requested that the LIEMPTY Project be renewed for the

period 1 December 1962 through 30 November 1963 for a total of $49,500;

$29,500 for Fiscal Year 1962 and $20,000 for Fiscal Year 1963.

amounts can be broken down as follows:

FY 1962

FY 1963

Salaries

Transportation

Operational Expenses

Operational Equipment

24,000

1,100

3,900

500

15,500

900

3,100

500

Totals

29,500

20,000

It is not anticipated that any training will be required during

the next project year.

Emergency recontact instructions for Raymond H. GERENDE and

Oliver G. SCANTLING are on file at Headquarters.

This project is primarily a support asset and does not provide

positive intelligence.

5. WH Division strongly recommends renewal of this project which

covers

some of the most valuable investigative and support assets available

to Mexico City Station.

54-6-43411

02831

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SECRET/KAROK

REVIEW OF PROJECT LIEMPTY

(For the Purpose of Project Renewal)

COVER SHEET

CRYPTONYM

LIEMPTY

STATION

Mexico City

FIELD CASE OFFICER A.

Quinton N.

OUSLER

CHIEF OF STATION

Delard Gen

Willard C. CURTIS

The attached project action is presented for approval for the period

1 December 1961 through 30 November 1962.

SECRETASS

0G GUTT

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SECRET /K

Review of Project LIEMPTY

(For the Purpose of Project Renewal)

I. CURRENT OBJECTIVES AND PRODUCTION

A. Oliver G. SCANTLING Segment (discussed in relation to project

objectives):

"To collect operational information pertaining to LIMERICK

personnel and physical facilities.

•" SCANTLING has continued (See the

last two Project Reviews forwarded as attachments to HMMA -14093,

13 November 1959, and HMMA-15979, 18 November 1960) to provide

worthwhile information pertaining to this objective.

a..

During the past year SCANTLING has continued to be

used to follow up leads produced by LIENVOY. For example,

operational information recently indicated that the LIMERICK

target was using the services of a Mexico City firm to repair

safes.

'Through discreet investigation SCANTLING was able to

identify the firm, its location and the name of the owner in the

event that we later wished to make an approach to him or to

exploit this information in another manner.

b. SCANTLING is still the Station's primary source for

keeping current records on the residences of the many LIMERICK

personnel in Mexico City.

This is accomplished in several ways;

the most important being SCANTLING's follow up of all LIENVOY

leads which indicate the LIMERICK people are interested in

renting a given piece of property. (See previous project renewal

request for additional details).

2. "To collect operational information pertaining to other targets

of opportunity, foreign official installations and personnel of intelligence

interest operating in Mexico." SCANTLING is very useful for collecting

information on other Station targets:

SECRET/NAL

17?67

1500

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SECRET/KAYOK

- 2-

a. On the basis of a request to the Station from the

ODACID Chief, SCANTLING was sent to Puebla to be an

eyewitness to the 4 June 1961 Catholic inspired anti-CASTRO

demonstrations. Not only did SCANTLING obtain the desired

information, and samples of many of the leaflets used, but he

prepared his report for the Station in time for the COS to give

the ODACID Chief a briefing at 1000 hrs., 5 June 1961.

SCANTLING does an excellent job on this type of assignment

due principally to his ability to observe and report objectively.

b. SCANTLING was instrumental in establishing that

Fernando LLANES Cavero and his wife were living at a local

Mexico City address. This case has been of considerable

counterespionage interest to Headquarters.

c.

SCANTLING has continued his contributions to the

Paul Frederick KIRSCHHOFF case by periodic interviews with

the subject's neighbors and associates.

"To exploit operational leads through recruitments, debriefings,

and surveillances." SCANTLING has contributed to this objective both

directly and indirectly as will be noted by the examples listed below:

a. SCANTLING devoted a lot of time to the

surveillance and attempted recruitment of Abel ARTEAGA, a

Mexican national employed at the Cuban Embassy. SCANTLING

talked with ARTEAGA several times and undoubtedly was

primarily responsible for the later success of the recruitment

made by another Station agent.

b. Some additional time was devoted to the Cesar

GONZALEZ Sanchez case in February 1961 when SCANTLING

determined that GONZALEZ was still in Mexico City. See

the last renewal for additional details on this case.

In connection with the above objective SCANTLING

has performed numerous pretext and neighborhood investigations

for the Station. SCANTLING also does most of the local

investigations requested by ODACID and other ODYOKE

components.

SECRET/K

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SECRET/LACK

- 3-

d. SCANTLING spent six weeks during July and

August of this year giving tradecraft and surveillance

training to LIPAILS 5 and 7 from Monterrey. Although

this is not a direct contribution to the above objective, it

is considered sufficiently related to mention here.

4. In addition to his contributions to the above objectives,

SCANTLING is used for miscellaneous support requirements from the

Station. For example, SCANTLING is now handling LIEMBROIL-2 and

will continue to do so until the return of LIMOTOR-14 in June 1962. Also,

during the past project year, SCANTLING handled the LIRICE surveillance

team until July 1961 when Simon D. CLACKETT (ps) returned to Mexico

City. SCANTLING is also used to spot and rent safe houses and apartments

for other Station operations.

5. As stated in the preceeding Requests for Project Renewal,

although SCANTLING's LIEMPTY Project objectives can never be completely

fulfilled, it is the Station's opinion that SCANTLING has made important and

valuable contributions to LIEMPTY Project objectives specifically and to

other Station activities in general. SCANTLING's production, measured

against monetary expenditures, case officer time and other intangible factors,

unquestionably justifies his continuation as an integral part of Project

LIEMPTY.

B.

Raymond H. GERENDE Segment (discussed in relation to project

abjectives) :

"To collect operational information pertaining to LIMERICK

personnel and physical facilities through use of photographic base houses:

Three photographic bases, LIMITED, LILYRIC and LICALLA, contribute

to this objective.

To avoid repetition, the Station is omitting the usual

description of the functions of these three bases and how they contribute

to the above objective.

There has been no change in the coverage as

described in the 1960 Request for Project Renewal.

2. "To collect operational information and identify operational

leads pertaining to Station targets of opportunity." The LIENTRAP

operation, handled by GERENDE, is still the major contributor to this

SECRET/&

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SECRETLE

- 4-

objective. In addition to performing numerous photographic assignments

in support of other Station operations, LIENTRAP devoted nearly four

months, on a fulltime basis, to coverage of the LIERODE operation. For

several weeks the entire "take" from the LIERODE target was recorded

from the LIENTRAP vehicle. Later, the LIENTRAP agents operated the

LIERODE technical gear from the initial LIERODE stationary base.

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

Station 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 and services post office box letter drops for the many

Station operations requiring them.

The quality and quantity of operational information produced

by the photographic bases and other activities under GERENDE's control

and supervision is considered worthwhile. The Station concludes, therefore,

that this segment of the LIEMPTY Project should be continued.

C. Relationship to Related Mission Directive Objectives:

As stated in the previous project renewal, it can readily be noted

that Project LIEMPTY has provided support to many Station operations and

in this manner has been a contributing factor to the furthereance 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 operations.

CHANGES

There have been no changes in the LIEMPTY Project during the past project

year except that SCANTLING relinquished control of the LIRICE (formerly LiJERSEY)

surveillance team in July 1961 in accordance with previous plans.

SECRET/K

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SECRETE

- 5-

III.

• EFFECTIVENESS

There has been no change in Project LIEMPTY which would alter the

validity of the remarks made in Section III of last year's project renewal request.

IV.

PROBLEMS

The security problem in connection with the LICALLA operation, which

was described in last year's renewal request, is still present but has not caused

any known difficulty. At Headquarters suggestion in HMMW-9736, the LICALLA

base was reactivated on 29 May 1961. The base operator has been cautioned to be

ever alert for any unusual incidents which might indicate that the base has been

compromised. This is the only problem experienced by the LIEMPTY Project

during the past project year.

V.. ..

PLANS

The Station considers that the project is now operating at its optimum size

and does not plan to expand it during the coming year. Rather, efforts will be

devoted to refining and better utilizing the existing project organizational

arrangements.

VI.

COSTS

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

expended $21, 458. 00 during Fiscal Year 1961 (1 December 1960 - 30 June 1961) and

has thus far during Fiscal Year 1962 (through 30 September 1961) expended about

$11,000.00. It is anticipated that about $8, 000. 00 will be expended during the last

two months (October and November 1961) of the project year. This will make a

toral expenditure during the project year of about $40, 500.00, or some $12, 500.00

under the budget estimate of $53, 000.00.

B. Ensuing Period - Of the total $49, 500. 00 budget, itemized below,

$29, 500. 00 should be expended during the remainder of Fiscal Year 1962 and the

-balance, =$20,000.00 should be expended during FIscal Year 1963. Normal accounting

procedures will be used for all expenditures.

SECRETA LEA

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SECRET

- 6-

AGENT

Raymond H. GERENDE

Oliver G. SCANTLING

Louise J. MACRINO

(@ $2.02 per hour)

LIEMPTY-4

LIEMPTY-5

(@ $1.75 per hour)

LIEMPTY -6

LIEMPTY-7 (No Salary)

LIEMPTY-8

LIEMPTY -9

LIEMPTY- 10

LIEMPTY-11

LIEMPTY-12

LIEMPTY-13

LIEMPTY-14

LIEMPTY-19

LIEMPTY-24 (No Salary)

Christmas Bonuses 1961

U.S. $ PER ANNUM

$

5, 520.00

5, 000.00

1, 500.00

2, 200.00

1, 000.00

3, 000.00

-0-

2, 000.00

3, 000. 00

3, 900.00

2, 800.00

2, 000.00

2, 000.00

2, 000.00

1, 000: 00

-O-

2, 580.00

SUB-TOTAL

OPERATIONAL EXPENSES

Maintenance of MV MV-2279, 2284 and

2286.

Procurement of Safehouses, post

office boxes and renting

automobiles.

Purchase of information,

identification documents, and

bribes.

SUB-TOTAL

OPERATIONAL EQUIPMENT

Repair, maintenance and purchase

of replacement photographic

equipment.

$ 2,000.00

1,000.00

500.00

$ 1,000.00

SUB-TOTAL

SECRET/S

$

39, 500.00

3, 500.00

1, 000. 00

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SECRET/KeE

-7-

REAL ESTATE

Rent, utilities and maintenance

of following safehouses:

*LIMITED

*LICALA

LILYRIC

$

3, 000.00

1,500.00

1, 000.00

SUB-TOTAL

GRAND TOTAL

5, 500.00

$ 49,500.00

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

credited to Station miscellaneous receipts.

VIL.

EMERGENCY CONDITIONS

23 November 19, an at a 8, 25 overlet renewal and HIM -15982,

19 0397

SECRETAR

502.7441

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SEGRET

eno 1-058,

MEMORANDUM FOR: Chief of Operations, DD/P

SUBJECT

: Project LIEMPTY (Renewal)

WH - Mexico City

The attached project, originating in wH Division,

Is presented for renewal for the period 1 December 1960

through 30 November 1961.

The project provides for physi-

cal and photographic surveillance operations in support

and exploitation

of other Mexico City Station operations,

particularly those targetted at Soviet personnel and in-

the

Authority is requested to obligate $53,000 from

DD/P-WH Division budget:

$31,900 in fiscal year 1961,

and

$21,100 in fiscal year 1962, subject to the availabil-

Ity of funds.

The amount includes $38,000 compensation

for two principal agents, one clerical support agent on an

hourly basis,

and eleven

surveillance and support agents;

$7,000 operational expenses (safehouse procurement, post

office boxes, rented automobiles, purchase of information,

vehicle maintenance,

and operational travel); $2,500 re-

placement,

repair and maintenance of photographic equip-

ment; and $5,500 basehouse rental, utilities, and mainte-

nance.

3.

The field's renewal request,

supported by a cover-

ing memorandum of

the Division,

of

accomplishments

the project in the past year in terms of objectives and

estimates effectiveness.

It is noted that one principal

agent, Simon D. CLACKETT (p), resigned in October 1960, and

the four-man surveillance team previously handled by him

will be transferred to project LITEMPO, consequently being

omitted from LIEMPTY in this renewal.

Three basehouses con-

tinue to be operated under the project: (a) LIMITED, which

compiles daily logs on arrivals and departures from the

LIMERICK installation,

together with attendance lists of

LIMERICK employees, and handles the radio dispatch of the

LIEMBRACE surveillance team on LIMERICK personnel and targets

SECRET.

2832

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SECRET

of opportunity.

This basehouse also provides photographic

coverage, concentrated on visitors.

LILYRIC which pro-

clandestine photographs particularly of visitors to,

as well as employees of,

the LIMERICK installation, prepares

weekly reports on LIMERICK employees

and their wives,

reports on license numbers of all cars visiting the

lation. (c)

LICALLA, which concentrates on photographic

coverage of LIMERICK employees and their families, as well

as providing observation on the apparent positions and jobs

of the target employees, and as well as personnel changes.

Additional photographic coverage is provided by the mobile

LIENTRAP vehicle.

Principal agent Raymond H. GERENDE (p)

continues to coordinate basehouse activities; principal

agent Oliver G.

SCANTLING (p) continues to be

an independent

asset used to follow-up and exploit operational information

on target personnel and installations, to case various in-

stallations of interest,

to acquire property,

SCANTLING

has managed the surveillance team being

transferred to

LITEMPO in the interim following the resignation of CLACKETT.

The Station notes that activities at the LICALLA basehouse

were suspended in September 1960 as the result of the ar-

rest of a knowledgeable TSD technician in another area and

It is not known precisely when it will be possible to re-

sume these operations.

The Station believes that the

GERENDE segment is now operating under optimum arrangements

and SCANTLING will soon be relieved from his interim respon-

sibility for the surveillance team being transferred to

LITEMPO and can concentrate more on his investigative and

casing activities.

It is not planned in the coming year to

expand project activities.

Appropriate Special Staff components concur in rec-

ommending renewal.

FI Staff notes the Division's assurance

that the transfer of the unilateral surveillance team to

LITEMPO will not affect its independent status,

and remarks

that the current project review presents a clearer picture

of the usefulness of the

segments than the previous

one.

SECRET

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5.

sented.

I recommend renewal of Project LIEMPTY as pre-

Chief, DDP/PG

Approved:

lukoutta

COP-DD/P

3 FEB 1961

Date

Attachment:

Project Outline LIEMPTY

FI Memorandum

Staff Coordination:

For FI Staff -s/R. Bryant

For CI Staff -s/R. Brown

For CCG

-s/F. Youngblood

CARIET

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