## Page 1

104-10187-10014

2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

18.100

28: 00 Vs do 12:1000

MESSAGE FORM

.. 18

M0x100

DIRECTOR.

WH &

50- 8-74/3

in on no see

33008 42324

SIC CEN

39 г

тор

NIXI

WISHPTY

5 89.971

BET: NEXI 1307 (IN 98998)"

1' EDGA SORKIS IN PRINCIPLE THAT MINITRD ENDS BHOULD IS BAZI

RATHER THAN RUPQUID. TOUR PARA TERRE PROFOBAL ON COMERCIAL INCONS

1 NETTINO VENTURE MOULD INHRDIATELY LAST THIS ASPECT OF LIBIPPY A

PROPRIETARY WITE ATTENDANT EPECIAL ADAIN HARDLITO. 0HL8aS THERE ARE

OVERRIDING ERCURITY AND OPS CONSIDERATIONS IS PREYER HOT DO TERS.

HONE IS IN C ME ME TO MEN M ME MENTIRE ME

SUGGESTS LIMITED BS MADE SEPARATE (FROM LIBHPTY) PROPRIETARY BUPPORT

PROJ IN ORDER REDUCK CONFUSION OP TWO TYPES ACCOUNTING UNDER ONE PROJ.

3. LOOS STRONGLY BELIEVES PREVERARLE SOLUTION FOULD DR OKERZY

REBUILO HOUSE ON SANE LAND FOR OCCUPANCY BATEOUSS KEYPERS. TalE vILL

NOT INVOLVE PROPRISTARY, ISO MOULD DE MORE ASCURS TROT BEANPOINT

SOV COUNTERABASURES.

3. ALTRINATS SOLUTION IS SILL LIMITED PROPERTY TO LILOURIS AT

YAIR MARKET VALUS DETERINED BY INDEPSNDEST APPRATAL WITH UIIRASTANDIN

IS BUILD AN APARTARIO SECOND ON WIGHT LIT A LOSE TERM

IRABE.

EXAX CONTINUSD.

SEIRRIRATIRI OPELEAA

ATIMO

1088 13890

LION NO CORNNES

Su 163

'391

'TRRDT116S79T

---

## Page 2

4-00000

ors.C. Dustos-Ysdols: jas

MESBAQE FORM

B R

UNT .

081

DAT.

O NOXX

• NO DOLI

DOti DiRECTOA

cona

inl T wiSt

¡то &

: 1: ' 890

p: : n9sd6,.:1d.pe

io. i

ic: s9pi.

dil ra. mid nd igiee.

'i•n.

d.-?'!:

58997

1.ELISPRINTE YOR MN BUYUIN ME M CONO PE MHNN

FUNDE MUST RICHIYS EDAS APPROVAL, SHL8 APFROVAS ANTO PEQS ANEUNDIT

MOT EN OSTAIIO TEIS TO ANT CORNIIINET POYE. ISTINAEE TIN FOR

SOTAS APPROTAI AJTEM RICEIE SEAN I0 MOSIIE MEO MO®

8X8 80088

ASOUZD HOT S RUSSO UNTEZ AYPROVAL ERAPIED,

•+ 100999-

"i=:•

BID OF ENSSAQS

"psoud a

Fa Cenaost8

PINITE Photo baserouo Mloa to pirelsõed iêsaila deterson

GEINE ANd SEATLOB DUSBENRE PABO BULLEISE SUL SADINIE DIED

iluLichir":, 1$8050. 81 196 21008 ABd SVO 89t0 UeS8AJSS 88 DO4s 08 880.000.

9 Mand

ieertn wei

• inp rore creBer rr. Frsnacalt,

Wude ore dt:

VEL ET CASTOR (ArASE)

89/0,08

farastibnagon

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fiote

cae (eale) deneen oi

M7I/hoPton (draft)

199ea Didi iooio:

!

C/wH/5B/Eroaka (EPas→)

i:

VaZos1ala2os (95a8))

netetitsii

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•d ci

ArX1

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g ua tuc vật mưane gmc

---

## Page 3

14-00000

_MSSIFIED

-

INTERNAL

USE ONLY

J CONFIDEITIAL

Si SECRE

ROUTING AND RECORD SHEET

SUBJECT: (050109011

FROM:

KDFACTOR Project Amendment and Termination

Ar. Mullah

RATENSION

i No

Henry E. Mul love

WH/1/FI

I0: (Office dongration, rooms number, and

burkdung) .

DATE

'recineo

1973/

14167

TRICER

MITIAI

FORWARDED

26 April 1973

1.

C/WH/1

2.

WH/B&F

3.

WH/SS

5.

WH/Plans/Erna

7.

8.

C/WH/FI

C/WH/Plans

10.

A C/WHD

Tr.

12.

MPS/BG/FI

13.

WH/1/FI

14.

13.

FORM

1-02

610 SORONOUS & SECRET

26 1.24

EY 12 FUNDS AVAILABLE

sAge: 276p2)

54-734K

1 in EN

i lo. 5135

5114/13. 92F

20 MAY 1972

BY. HAND

• CONFIDENTIAL

7 MARRA

SE ONLY

• UNCLASSIFIED

---

## Page 4

4-00000

SECRET

PROJECT APPROVAL NOTIFICATION

PROJECT

ADFACTOR

ACTION

MEN PROJICT

AFRENAL

TERMIMATION

EXTENSION

OTHER

ADDO

MERIDO OF APPROVAL

1ou 1. July 1714

CONDITIONS OF APPROVAL

0X0 11/c1

CORPONENT

PIVISION ON STARE

WH

ANNUAL

PITMAIAL

BRANCH

HH/1

OrSK

Hexico

CASE OFFICED

INTINSION

Henry E. Mulloy

4147

AUTHORIZATION

- DATE APPROVID

25. MaY 1173

A4P THIS

ACTION

FY

• 2.

: 3.,000

TOTAL FUMOS AUTHONIZATION

-32 June 1112

$ 7,24r.

FINANCIAL

CODE

_ SYMPOL

2135-1002

Amontient No. 2 to Project KOFACTOR ayproved in the anount

od $7,241, Increaaing the project's authorization frou

$28,ä%4 to a revieed total ol $34,0;0 for FY 72; ternination

oi Project KDFACTOR approved erfective 30 June 1972.

1U441UN

модівє

PPD

849

..0

CATEO MAY :373

DISTRIBUTION

SECRET

UPS 8G

-**.

---

## Page 5

14-00000

SECRET

2 2 MAY 1973

MEMORANDUM FOR:

Associate Deputy Director for Operations

THROUGH:

SUBJECT:

MPS/BG

Amendment and Termination of Project

KDFACTOR

Project KDFACTOR supported a visual and photo-

graphic survelllance operation in Mexico City targetted

against the soviet Embassy.

Assets included five agents

and two baschouse

his project, effoctive 30 June 1972, was the result of

i security review which revealed that the VWBLANKET

principal knew the basic delails of lie KDFACTOR opera-

tions.

Agent termination was accomplished without any

deed te the town has owens, silenced sauty enti

In the ovent

tion's relations with

operations.

ect in the amount of $9,844 for FY 1972 to provide for

he agent terminations, but an overrun of $7,246 oc-

curred as the result of miscalculation of termination

This project action requests this additional

sum of $7,246 to cover these expenses.

The FI Staff recommends approval of this amend-

ment/termination request.

AL. A. Campbell

Chief

Foreign

Intelligence

Attachment:

• Project

Reviewing officer:

FI/OPS

- Stephen Roll

610097

..-

PRONG NOTE

SENSIT!

---

## Page 6

4-00000

SECRET

1i1101 10)

ORGANIZATIONAL

ELEMENT

C/WH/1

C/WH/B&F

C/WH/SS

C/WH/FI

C/WH/Plans

PROJECT ACTION

•

SECT

LETTINY

KDFACTOR

TYPE OF ACTION

NEW PROJECT

X

но..

ANEMOMENT

REMENAL

11/0

DiVISIÓN

Western Hemisphere Division

FIPLO STATION

Mexico CIty

CATENSION

X

He Pullin

BUILDIME

Mexiço

TERMIMATION

26 Apr 73

1973 4167

CONCURRENCES OF DIVISIONS

TYPEO MAME (And alenAlpa).

DATES

John C. Murray

John T. Boeck

Richard B. Wright

Robert D. Wiecha

John H. Wilson

Heled W. Natter

19. 26l2

26 Aps.

84192 73 2260r

5--13

14 May Z3

MENO

ATTACHIO

=..

#C/WHD

FI_Staff

CL Staff

James E. Flannery.

CONCUKRENCES OF OTHER COMPONENTS.

mery 5=14-731

on Oreans

'Then concueren

sonal flement

cocained by or dorado Helon oe!

DATES

i Elemant..

-oUT

Aholl

22 Ma 23.

/s/ Frank W. Hughes

22 May 73

C/CCS/PRG

s/ Gale W. Allen

21 May 73

MEMO

ALL FOR-RE

ACTICHS ON.

THIS FIOJECT

77302.

ID.: 2 15020

x

KEIMPS/BG

1 July 71

APPROVING AUTHORITY

ADDO

FORN

9.68

848 10111043

PERIOD

APPROVAL

ANT PHIS ACTION

30 June 1L

Willem

19. T2

Ellelem

24mmy 73 24 My 13

TOTAL FINOS AUTHOR

336,090

25 tray 1473

191

---

## Page 7

tor.

SECRET

ENORANDUN FOR: Associate Reputy Directo

or Operation

SUBJECT

: Project KDFACTOR - Amendment

and Termination Request.

he KDFACTOR Project (until 1970 encrypte

JEMPTY Project) was initially approved i

1958 to provide financial and material support for

visual and photographic surveillance operations

targetted against the Soviet Embassy in Mexico

In June 1972 the project supported

agents and to basehouse surveillance sites.

The NDFACTOR Project was approved by the

ADDO in tha amount of $19,000 for FY

50 June 1972, the No

Per DIRECTOR 285255, dated

, the ADDO approved Arendment D. 1

to the KDFACTOR Project in the amount of $9,844

for FY - 72 to provide for costs of agent

terminations.

The decision to terminate all agents and

facilities under the KDFACTOR Project was based

on a security review of the project activities

which indicated that the VWBLANKET principal knew

the basic details of the KDFACTOR operations,

including the target,

the location of the surveillance

sites, and probably the true names and former

cryptonyms of the agents covered by the project.

The cost of terminating the agents under the

KDFACTOR Project amounted to $15,573; the cost of

closing down, the two basehouses under the project

The total amount charged to the KDFACTOR

agents and

facilities associated with the NDFACTOR Project.

Although Amendment No. 1 to the project was

approved in the

of $9,8+t to cover

of terminating the agents in the

SECRET

C. 2 IMPDET CL Or 0, 5122

---

## Page 8

14-00000

SECRET

Freject, the

actual payments made by Mexico City

Sation per the terms of each Memorandum of Oral

Commitment (MOC) and in accordance with Mexican

lan and custom exceeded the estimate for termination

costs made by Headquarters at the time the Amendment

Termination payments made to each

agent are as follows:

•DFACTOR - 2

KDFACTOR - 5

KDFACTOR- 6

KDFACTOR - 8

KDFACTOR-9

(Recruited 1956)

(Recruited 1956)

(Recruited 1956)

(Recruited 1965)

(Recruited 1966)

$8,160

2,366

2,830

649

1,568

The long tenure of three of the terminated

agents, the relatively high monthly salary of

K2FACTOR-2 ($440) plus the computation of the

termination payments in accordance with Mexican

lat and custom were the primary reasons that the

final agent termination costs amounted to $15,573.

All agent terminations were accomplished

in an amicable manner.

No visible security risks

were apparent at the tine of the terminations

sIthough any one, or all,

of the terminated agents

nay at some future date decide to divulge to an

interested party the details of the NDFACTOR Project

operations.

KDFACTOR-2, KDFACTOR-5, and KDFACTOR-6

have worked in photo surveillance operations for

the Station since 1956 and, therefore, obviously

save considerable knowledge of targets, former

safesites, However,

and modus operandi of the

personne since the XDFACTOR Project was

not concerned with incompatible operations or

targets, we believe the risks of damage to Station

relations with the Mexican Government

in the event

of exposure of the KDFACTOR Project operations by a

terminated agent are within acceptable linits.

be amended to reques the hat oh a dor roject

I? to cover the costs of terminating five agents

and two basehouse surveillance sites under this

project.

i.

-----

SECRET.

---

## Page 9

SECRET

It is also requested that the termination

of the ADFACTOR Project be approved effective

Jane stammy

AC/WHD

SECRET

---

## Page 10

14-00000

PROJES

TYPE OF ACTION

APPOOVAL

MIMETAL

EXTENSION

PERMINATION

1. 11-9 1=

i :

ACTION

NDFACTOR

81/6

- CA

Western Hemisphere Division

PIERO SPATION

Nexico CIty

One

CASE OFFICIA

Henry E.

Nul loy

поом но.

BUILDIME

3E05

Has

CONCURRENCES OF

DIVISIONS

1009 .

legaeuros

DESK

Mexico

DATE

26 Apr 73

PER.

11973 4167

-OVI

Tog

NE NO

NGANT7AT100

ELEMEYT

C/WH/1

C/WH/B&F

C/WH/SS

C/iH/FI

C/WH/Plans

John C. Murray

John T. Boeck

Richard B. right

Robert D. Wiecha

John H. Wilson

C/KHD

Theodore G. Shackley

CONCURRENCES OF OTWEN

I COMPOMENTS

Trpe in Ordanisationed Element and dare Belon Onl

sen Concurrence Oberoned by Gropinaling Elemene..

DATES

MEnO

OUT

APPROVAL

ANT THIS ACTION

PERIOD

Tro

11y 71

APPROVING AUTHERITI

ADDO

so 848 081

JUNE ATUR

I TOTAL FURS AUTHOR

14?100

SECRET,

---

## Page 11

SHERET

MENORANDUN FOR:

Associate leputy Director

for @perations

SUBJECT

: Project NDFACTOR • Amendment and

termination Request.

1.-The KDFACTOR Project (until 1970 encrypted as the

LIENPTY Project) has initially approved in 1958 to provide

inancial and materiel support for visual and photographic

urveillance operations trotted against tre soviet Embass

in Mexico City.

In June 19i? the project supported iive

agents and tho basehouse survcillance sites.

2. The NDFACTOR Project was approved by the ADDO in

he amount of 519,000 sor For and 520,000 or Fr-73.

Per DIRECTOR 285255, dated 30 June 1972, the ADDO approved

Amendment No.

1 to the NDFACTOR Project in the amount of

$9,844 for FY-72 to provide for costs of agent terminations.

3. The decision to terminate all agents and facilities

the NDFACTOR Project was based on a security revicw

of the project activities wnich indicated that the BLANET

the basic details of the DractoR operations,

increans the target, the location of the surveillance sites.

and probably the true nanes and former cryptonyms of the

agents covered by the project.

4. The costs of terminating all the agants in the KDFACTOR

Project amounted to $15,573.00 which was considerably more

than had beer. initially estimated when Amendent No. 1 for

Fx-72 was requested and approved.

The total amount charged

The overage

nations was 30 June 1972.

SECHET

2.I000ET 66 1655272

---

## Page 12

diündl

terminations were accomplished in an

amicable manner.

5.. All agent. No visible security risis were apparent

at the time of the terminations although any one, or all

of the terminationed agents may at some

future date decide

to divulge to an interested party the details or the

KDFACTOR-? and KDFACTOR-5

have worked in photo surveillance operations for the

Station since 1957 and, therefore, obviously have consider-

able knowledge of targets,

former safesites; personnel

and

modus operandi of the Station.

since the KDFACTOR

Project was nos concerned with inconyatibic operations or

cargots, ne believe the risks of damage to station relations

with the Mexican Government in the event of exposure of the

KDFACTOR Project operations by a terminated agent are within

acceptable limits.

6. It is requested that the KDFACTOR Project be amended

to provide the sun of $7,216 for FY-72 to cover

the costs of

tciminating fire agents and two basehouse survoillance

sites covered b this project.

7. It is also requested that the termination of the

KDFACTOR Project be approved effective 30 June 1972.

Theodore G. Shackley

Chief, Ncstern Hemisphere Division

SECKET

---

## Page 13

RDFACTOR - Mexico CIty, Mexico -- I'hotographle surveillance

Teaa Support == FY 1972, Cost $19,000 and FY 1973,

CosE $20,000

1971

Approved

$23,635

oblisaced

$27,586

Changeg:

1. The processing of photographs obtained through this

project now is performed inalue the station.

KDPACTOR-1, ato

formerly processed the take in an outside safehouse, Mas

terminated amicably in osrly March 1971. Socurity and aff1-

clancy have been increased by this change, KDFACTOR=l so

terainated in 1970, but che termination payments wore nade

during T8 1971 causing an increase in that years obligations.

Hosard I. BAGAUS handled the adminiatration of chis

project to early April 1971 shen project responsibility

reverted from the Operations support Section to the REDIAP

Section.

At that tima Ilmothy H. ARCHBOLD asBuned the laside

administrative supervision, and agent meetings were turned

over to: the outsido case officer bruco l. "anALD.

ARCHBOLD departed PCS on 7 June 1971, Oliver J. MANKUNAS

assumed responsibility for this project, including agent

meetings.

AccosoLishments:

1: This project has proyided continuous daily phoco-,

graphic and visual coverage of personnel and vehicles entering

or leaving the Soviet Embassy, A total of 530 rollo of f1lu

vere produced during the reporting period. U.s. citizens.

• U1s1t0rs; and IDY personnel are given special attention.

Iden-

tifications of license plates and automobile descriptions as

well as drivers and their compenions are identified under chis

project. Additionally, attendance sheets are maintained to

establish who is at the Embassy on any given day and hour.

---

## Page 14

4-00000

These photographs and reports have contributed operations!

support to the Station's Soviet operations vhich 18 not

atrainablo olsenhere.

For exasple, whenever che Sovloca

change all their licende numbers the Station 18 able to

compile a nes, complete roster vithin a matter of seeks.

General:

$19,000 1s requested for FY 1972 and

$20,000 1a requested for FY 1973.

It ia also requested

that the Projact be amended for fY 1971 in the amount of

94,260 to provide for the termliation of XDFACTOR-l and

KDPACTOR-7.

2. SoUrce of Sunda: Project ADPACIOR 1s Includod in

the Western Hemisphere Division's Operational Program in che

amount of $23,735 for PY 1972 and $24,182 for FY 1973.

3. Project Budget:

FX 1970

Fx 72.

58 73

58 74

Estimated

Obl1gationg

Salarles

EDFACTOR - 2

IDEACTOR- 5

IDFACTOR - 6

KDFACTOR-8

-KDFACIOR-9

KDFACTOR -1

SOFACDOR - 7

• Bonuses

$ 3,280

1,728

2,112

768

: 1,968

4,400

2,500

1,374

$20, 130

$ 5,280

1,728

2,112

768

-1,968

-O-

-O-

1,088

$12,944

$ 5,808

1,901

2,323

845

2,165

-0-

1,087

314;129

$ 5,809

1,901

2,323

845

--2,165

=0-

-0.

1,087

$14,129

Base houses

Rents

Ut1l1tles

Maintenance

$ 6,022

400

56.200

$ 4,350 $ 4,240

750

800

- 501

$ 5,60

$ 5,541

$ 4,240

800

500

$ 5,540

---

## Page 15

4-00000

•30

Misc-Expenses

Ops ontertaimment 8" 165

Auto maintenance

Ops exponses

Total Expenses

80

899

{27.587

$

300

200

56

456

$19,000

100

100

131

331

$20,000

100

100

132

331

320.000

There 18 no special need for

• DOn-JKLANCE funds aId used

77 72 and 88 15

Commitments: Chrlatmas bonuses are provided in the

budgets.

Funding: Funds are hand-carried fron the Station by

the case officer and transferred during clandestine meetings.

Receipts aro obtained for all disbursements according to

JELANCE regulations.

7. ARRazed: NoDa.

---

## Page 16

ADIACIOR - Mexico CIty, Mexico -- Photographic Surveillarice

Tean Support -- FY 1972, Cost $19,000 and FY 1973,

Placal Year

• 1971

Approved

$23,635

Obisgated

$27,586

Changes:

1. The processing of photographs obtained through this

project now 18 perforsed inside the Station.

KDFACTOR-1, uho

formerly processed the take in an outside safehouse, was

terminated amicably in early March 1971. Socurity and efft-

clency have been increased by thia change. KDFACTOR-1 was

terminated in 1970, but che termination payments vare made

during FY 1971 causing an increase in that years obligations.

2.

Howard T. SCAUS handled the administration of this

project to essly Ayril 1971 when project responsibility

reverted from the Operations Support Section to the REDTOP

Section.

At. that time Timothy H. ARCHBOLD asBumed tke inside

achalistrative supervision, and agent metings were turned

over to the outside case officer Bruce H. FERNALD.

When

ARCHBOLD departed PCS on 7 June 1971, Oliver J: MANKUNAS

assuned responsibility for thia project, including agent

meetings.

Accomp 118hments:

L. This project has provided continuous daily photo-

graphic and visual coverage of personsel and vehicles entering

or leaving the Soviet Embassy, A tocal of 530 rolls of film

vera produced during the reporting period. U.s. citisens.

vell as drivers and their companions are Identified under chis

project.

Additionally, attendance sheets are maintained to

establish who is at the Embassy on any given day and hour.

---

## Page 17

4-00000

These photographs and reports have contributed operational

support to the Station's Soviet operations which 1o not

attainable eldenhere. For exasple, whenever the Soviete

change all their license numbers the Station is able to

compile a nev, complete roster within a matter of weeka.

Costa:

20. che Proge

General: $19,000 1s requested for FX 1912 and

$20,000 18 requested foi lY 1913. It 13 also requested

that the Project be amended for fY 1971 in the amount of

7 15110

$4,260 to provide for the termination of XDFACTOR-1 and

XDFACIOR-7.

2. Source of Funds: Project KDPACTOR 13 included 1n

the Western Hemisphere Division's Operational Program in the

amount of $23,735 for FY 1972 and $24,182 for FY 1973.

3. Project Budget:

FY 1970

FY 72

FY 73

FY 74

Estimated

0bl1gat1ong

Salaries

KDFACTOR-2

EDFACTOR - 5

KDFACTOR-6

KDFACTOR- 8

EDFACTOR - 9

KDFACTOR - 1

KDFACTOR-7

Bonuses

$ 5,280

1,728

2,112

768

1,968

4,400

2,500

1,374

$20,130

$ 5,280

1,728

2,112

768

1,968

-0-

-0=

1,088

312,944

$ 5,808

1,901.

2,323

845

2,165

-0-

-0-

1,087

$14,129

$ 5,808

1,901

2,323

845

2,165

-0-

=0-

1,037

$14, 129

Base houses

Rents

Utilities

Maintenance

$ 6,022

400

$ 6,200

$ 4,350 $ 4,240

750

500

800

500

$ 5,600

$ 5,540

$ 4,240

800

500

$ 5,540

---

## Page 18

14-00000

...

..

- 3-

Misc Expenses

Ope entertainment §

Auto maintenance

Ops expanses

Total Expenses

165

80

590

835

$27.587

300

100

100

100

56

§ 456 5

331

$19,000

$20.000

8. 100

100

= 111.

$20,000

foreign are a rect funda a poste

There is no special need for

S. Commitments: Christmas bonuses are provided in the

FY 72 and FY 73 budgets...

7. Annexes: Nona.

---

## Page 19

4-00000

I UNCLASSIFIED

ME ONALY

ONLY

• CONFIDENTIAL

1=- Cons

POUTING AND RECORD SHEET.

SUBJECT: (Optional)

KDFACTOR Project Renewal

FROM

Fred Kravcou fR

WH/1, 3EOS

TO: (Officee designairon, roora number, and

burdens)

DATE

RICAIVIO

2.

C/WH/1/F1/CI

Ded

a8 coet

C/WH/L

3.

C/WH/B&F

1.

C/WH/SS

3. 53/x/WH

C/WH/FI

C/WH/Plans

11/19/31

7.

• 8.

EXTINSION

4167

на

OATE

OFFICER'S

INITIALS

28 October 1971

COMMENTS (Numbor doch comment lo shor tram whom

to whum.

Crom o line acrons column ofter soch cammeni.)

FY 71 FUNDS AVAILABLE

FY 72 FUMES AVAILABLE

3

1995 PUNAS WILL BE MANL

AVARABLE

The a preten ou

C/WHD

soft!

'1

AM

10.

18.

12.

13.

Tr.

44/F1

C/WH/1

iS.

C/WH/1/FI/CI

610 in EX" SECRET

19 MAY

15g39 Titl

till.

CONFIDENTIAL

INTERNAL

USE ONLY

UNCLASSIFIED

---

## Page 20

14-00000

SECRET

PROJECT APPROVAL MOTIFICATION

PROJEET

ACTION

COMPOSENT

FIVISION OR STAFE

NEN PROJECT

AMINOMENT

REMENAL

80. 1, 5X 78

AMMUAL

PIENNIAL

PERMINATION

DESA

ENTENBION

CASE OFFICER

OTHER

Jo Murray

AUTHORIZATION

APPROVING AUTHORITY

ADDP

PERIOD OS APPROVAL

I July 3978

PATE

APPROYEO

30 June 2972

AMT THIS ACTION

r. 30. Juna 1972

s 9,8lli

FINANCIAL

coor

SIMBOL

COMDITIONS OF APPROVAL

Assandrent Ho. 1 to PrOJOCt ADPACTOR spp tovad, no par

DIR 285255, 1n tha asount of $9, 8kl, Lacressing the

profeatis suthorteatian snes $19,000 to s revlaed

total as 988, 8ldi Por Ti 12.

EXTENSION

6955

TOTAL FUNDS AUTHONIZATION

,38, tali

213501009

SIGNATURE

MPS?BG

He?E

FORN

11.70

DISTRIBUTION

Os CoR SER

SECRET

25 J1

•AS

FFICE

4PS/06 /

---

## Page 21

SECRET

PROJEÇT APPROVAL MOTIFICATION

PORIECT

IDACTOR

ACLION

MIO MOOJECT

AMIHONIAT

CORONINT

лNM1122

PIS9NIA1

DIVISION ON STATE

RARACH

kH

TERMIMATIDN

LATENSION

Macroo

APPROVINE

AUTHORITY

AD P

PIRIOn 18

1 Nus 19%2

CONDITIONS

CASI OFFICIO

Frod Kharoor

TION

AUTHORI

DATE APPURVEA

10 beverber 1972

ANT THIS ACTION

•30 June 1973

: 32, 200

CODE

ENTENSION

4267.

FY

TOTAL PUNDS AUTHORILATIDN

.72

: 29,000

12 73

20,000

2735-1002

SIGNATURE

MPS 'BG

DATE

PPS

FORM

18.70

849 11181

DISTRIBUTION

SECRET

STATE

CASE

MPS/8G

13)

---

## Page 22

14-00000

PUNDINO

(When

Pilled In

DATE 12 De. 11

NO.

(DOCINEST I FON

THIS PROJECT)

NOTIFICATION OF PROJECT APPROVAL ACTION

DOS DATE OR STATION SARI ANX LEO LIS

ATTENTION: FINANCE OPPICER

INFO:

PROJECA

KAPAITUR

PAN 2138 - 1009

TYPE OF ACTION

PERIOD OF ACTION JINY T1 TOLSE. 73 AMOUNT 3_

39,000

NEW

PREVIOUS ACTION

IN THIS FISCAL YEAR

ip-)2

11-73

RENEWAL

TOTAL FISCAL YEAR APPROVAL

EXTENSION

18000

40,000

TERMINATION

AMENDMENT

PUNDS AVAILABLE FOR

HQS USE

PUNDS AVAILABLE FOR

PIELD USE

OTHER

=

15,000

20,000

CHIEF, /BSP

PROCESSED

APPROVED

HOS USE ONLY

TYPE OR ACTIUN

PERIOD

AMOUNT

SECRET

(When Pilled In)

---

## Page 23

4-00000

SECRET

• PROJECT APPROVAL MOTIFICATION

PHONEIT

ДОРАСТОВ

BCTION

aMenomIa" TOo 1, IX Th

PINIAL

ANNUAL

P1147192

INTENSION

APPROVINE.

AUTHORITY

ADP

PIRIOR OF TERRORSE

ном ] Jal5 2970

CONDITTONS OF APPROVAL

COMPONENT

DIVISION ON START

Ursu

Fred KraveON

AUTHOHIZATION

DATE APPURNIN

10 DoORber 2977

AMT PHIS ACTION

1n30 Jura 2972

849260

FINANCIAL

_ SYMIDI

Hoxloo

TATINSION

4267

1. 72

-19

TOTAL FUMOS AUTHORIPATION

: 27,890

2135-1009

Arendent No. 1 tO PrOfoOt IDPACTOR approved in the

amount al Sh, 260, Incroarine to projoct's FI 71

athardsation to a rovised total or 827,890.

it whate

SIGNATURE

MPSIDG

UISTHIBUTION

DIV.

tore StA

г'8

FUHM

849 "s

11.70

AFFICEI

Fist

MPS: B1

SECRET

---

## Page 24

14-00000

"....

SÜSÜEGI

ciencibord ele cada, suge

-2222

ADDP Comment of 26 May

70

---

## Page 25

3

FAN NUMBERS 35-1009 TITLES KOFACTOR

UDGET ARFA

"IDGET COLINTRYS MEXIC

1972

ACTUAL

RENT COuM A UtIl

?153 SAFEHDUSES

TOTAL

OTNED STOVICES

255J AGENT 985

PEGA AGENT CRA

2551 0DFXA SLH

2449 UPEXO OTMA

TOTAL

SUPPI. JES

2504 PHOTO

2400 PROP ENC

TOTAL

OTAL FAR 350100

EHORT-L

5•220

5.220

16+628

12,400

2n3

350

350

34.865

SECRET

FAN ACCOUNT TREND REPOR

30 NOV 197,

OFFICES WESTERN HEMIS DIV

SURE TENOR CHENES TO

CLANDESTINF

1973

ELEMENTI. CLOSE OPS SUPPOR

SUAFLEMENT

OPERATING

ACTUAL

HAL REMAIN

5:500

5.540

1.056

7.055

19.18

5.695

1.000

3.700

230

.100

BITTO

695

69.58

195

75.67

305

3, 780

230

100

T.+15

150

350

-*750

11.000

1.751

SE :758,15.98

?.249

1974

ESTIMATE

5.500

-5,560

1.000

12.700

230

100

TARITO

350

350

20.000

PAGE 371

-

-

1975

ESTIMATE

---

## Page 26

stein

•8 05C 1971

NEMORANDUM FOR: Assistant Deputy Director for Plans

THROUGH:

SUBJECT:

MPS/BG

Renewal of Project KDFACTOR

in 1972 for $19,000

in 1973 for $20,000

This project covers

photo and visual surveillance

Soviet Embassy in Mexico City.

One observation

post covers the front gate of the building,and another

covers the rear gate and walled compound.

Five salaried

agents man the sites.

one in back.

official cover case

officer collects the take (rolls of

film and logs of visitors)

once a week by car meetings

with the OP keepers.

The films are developed and printed

2. The production from this operation has consis-

tently been rated higa by the Bureau (which is the prin-

cipal customer in the field), by other Government agencies

and by SB Division.

Photosurveillance of a Soviet Embassy

might not be a high priority target in some countries.

But the fact that the Soviet Embassy in Mexico is a large

and active one

and the fact that its primary target is

operations against the United States make

important and valuable.

This is the operation that pro- This

the photographs of Lee Harvey Oswald visiting the

Soviet Embassy in 1962.

This seemingly straightforward operation has not

always

so uncomplicated.

Both

sites have been in

operation and

served by the same OP keepers for more than

a dozen Jears.

and children take turns manning the equipment.

terminated

principal agent was divorced several years

ago from a wife who knew a lot about the operation.

Some

desk officers believe that the medical doctor

who for

years was

supposed to be

developing the films was simply

too busj to

do so and that the work was probably done by

his uncleared secretary.

Family relationships keep

cropping up among supposedly compartmented agents.

of this is in the files but not in any one place.

All

We

194po17)

---

## Page 27

believe it is time for the Station to make an updated

security review of the operation with particular attention

to the knowledgeability

of terminated agents and their

families.

He also believe that the Station should now

address itself to the contingency that the present sites

or personnel will be blown and to investigate alternative

means of continuing their valuable coverage.

The ADDP last approved this project in May 1970

with the condition that termination payments to the

principal agent and his divorced wife be made on a

monthly basis. This condition has been not.

5. The budgets requested for the next two years are

simple and straightforward.

Salaries and the traditional

bonuses for the five paid agents come to about $13,000.

Rent and utilities on the two observation posts come to

$5,600.

The small balance is for operational expenses.

This project action also requests amendment of the FY

1971 budget by $1,260 to cover that part of the cost of

termination bonuses to the principal ayent and his di-

vorced wife

which could

not be absorbed by the project.

The total of the termination bonuses was $12,500.

6. This is a valuable and productive project which

helps fulfill a Priority A-1 Station requirement.

FI Staff recommends approval.

Cither Close

fIe. A. Campbe Campbe11

Chief

Foreign Intelligence

Attachment

Project

---

## Page 28

isis:

SECRET

PROJECT KDFACTOR

MPS/ BG/ FI/AFKatein: de

(13 DEC 71)

• Distribution:

O & 1 - Addressee

1 - ADD/P

X - WH/1

1 .. FI/OPS

1 - CI/OPS

1 - C/CCS/PRG

1 - MPS/BG/FI

SEGRFT

---

## Page 29

SECRET

i

1: 200.1

DD/P 1-5099 :

MEMORANDUM FOR: Chief, Westorn Hemisphore Division

SUBJECT:

Fl Projuct KDFACTOR

FY 1971 Amendment No. 1

Bionnial Renewal

Proposal for Fiscal

Years 1972 and 1973

1. On 10 Decembor 1971 I approved subject actions

in she amounts specified beiow:

do [Y 197/ Amundone: do. 1 - For St, 2i0, increisias

the projects al irri

Funds alishorization

(irom $23, 630) 10 5=i, 5:3.

b. FY i&i2 Renewal

c. FY 1973 Renewal

- For $19,000 #

- For $20,000

paragraph 3 of ruforent memorandum.

3. Also, I ask that you provide me (via MPS/ SG) with a

memorandum report summarizing the results of the above

(paragraph 2) security review by 31 March 1972.

*1:12, 111 0.

TAtal # 3,5/544.

14,557, 1011

SEGRET

---

## Page 30

14-00000

SECRET

11/101 101

PROJECT ACTION

TYPE OF

ACTION

X L

CA

MEN PROJECT

DIVISION

APPROVAL

Western Hemisphere_ Division

но.

ANTMOUTNT

FY-7

PIRIO STATION

Mexico City

941072 & 73

DRANCH

DESK

One

CASE OFFICER

EXTENSION

Fred Kravcov

поом но.

BUILDINA

TERMIMATION

3E05

Hgs

DATE

arD

1973

CONCURRENCES OF DIVISIONS

KDFACTOR

28 Oct 71

BLACK

4167

ONGAMIZATIONAL

ELEMENT

PYPER MAME &

C/WH/1

C/WH/B&F

C/WH/SS

John C. Murray

Lunsford O. Healy

Richard B. Wright

C/WH/RI

Richard S. Welch

C/WH/Plans

John Re Cassidy

C/ WHD

William V. Brou

ALi

DATES

29/10/1

29/0 11

1 Zorit2105.71.17602-71

I shant.

11/1/21

1111/21

16 19

SB/X/WH

FI Staff

CI Staff

CCS/PRQ

CONCURRENCES OF OTHER COMPONENTS

nor enrad

Flomans anil 8190

Me lum Only

when Concurrence Obsained hy orrfera

Haviland Smith

Hailand suin

1s/ Arthur c. Close

Frank Hughes /s/

Charles Beckman fs/

DATES

3/1/21

3 Dec 71

8 Dec 71

26 Nov 71

ATTRIMES

ME HO

*With the conditions as stated in my memorandum dated 14 December 1971

C/MPS/BG

Pas a Nie

(DD/P. 1-5899)

1 July 71 * 30

330 Tune

June 7921

1 July 721

20,000

OVING AUTHORITY

A/DDP

LA DECI

172-27,000

IS 20,000

10 Den

3-88 848 101

dayloud

SECRET

15)

---

## Page 31

4-00000

SECRET

"...

Cost $20,000

Fiscal Year

1971

Approved

$23,635

Obligated

$27,586

Changes:

1. The processing of photographs obtained through this

project now is performed inside the Station.

KDFACIOR-1, who

formerly processed the take in in outside safehouse, was

terminated amicably in early March 1971. Security and effi-

ciency have been increased by this change. -KDFACTOR-7 was

terminated in 1970, but the termination payments were made

during FY 1971 causing an increase in that years obligations.

2. Howard T. BAGAUS handled the administration of this

project to early April 1971 when project responsibility

reverted from the Operations Support Section to the REDIOP

Section.

At that tine Timothy H. ARCHBOLD assumed the inside

administrative supervision,

and agent meetings were turned

over to the outside case officer Bruce H. FERNALD.

ARCHBOLD departed PCS on 7 June 1971, Oliver J. MANKUNAS

assumed responsibility for this project, including agent

meetings.

Accomplishments:

1. This project has provided continuous daily photo-

graphic and visual coverage of personnel and vehicles entering

or leaving

the Soviet Embassy.

A total of 530 rolls of film

were produced during the reporting period. U.s. citizens'iden-

visitors,

and IDY personnel are given special attention.

¡fications of license plates and automobile descriptiong as

well as drivers and their companions are identified under this

Additionally, attendance sheets are maintained to

establish who is at the Embassy on any given day and hour.

SECRET

Fluidi: 1.5 ditto"

---

## Page 32

14-00000

SECRET -2-

These photugraphs and reports have contributed operational

support to the Station's soviet operations which is not

attainable elsewhere.

For example, whenever the Soviets

change all their license numbers the Station is able to

compile a new, complete roster within a matter of weeks.

Coste:

General: $19,000 is requested for FY 1972 and

$20,000 is requested for FY 1973. It is also requested

that the Project be amended for FY 1971 in the amount of

4,260 to provide for the termination of KDFACTOR-1 an

DPACTOR-7.

source of Funds: Project ADPACTOR 18 Included In

the westeroukem sphere Divi done Operational Program in the

amount of $23,735 for FY 1972 and $24,182 for FY 1973.

3. Project Budget:

FY 1971

FY 72

PY 73

FY 74

Estimated

Obligations

Salaries

KDFACTOR-2

KDFACTOR-S

KDFACTOR-6

KDFACTOR- 8

KDFACTOR-9

KDFACTOR- 1

KDFACTOR-7

Bonuses

$ 5,280

1, 728

2,112

768

1,968

4,400

2,500

1,374

$20,130

$ 5,280

1,728

2,112

768

1,968

-0=

1,088

1,087

$12,944

$14,129

$ 5,808

1,901

2,323

845

2,165

§ 5,808

1,901

2,323

845

2,165

-0-

1,08

14,12

Base houses

Rents

Utilities

Maintenance

$ 6,022

400

200

$ 6,622

$ 4,350 $ 4,200

5,60

55, 340

$ 4,240

800

500

$ 5,540

SECRET

---

## Page 33

14-00000

SECRET

-3-

Misc Expenses

Ops entertainment $ 165

Auto maintenance

80

Ops expenses

$ 899

$27,587

300 $

100

100

100

+ 436 г 131

Total Expenses

$19,000 $20,000

100

100

131

331

$20,000

-

*. Foreign Currency: There is no special need fo

foreign funds.

No non-JALANCE funds are used

S. Cormitments: Christmas bonuses are provided in the

FY 72 and FY 73 budgets.

6. Funding: Funds are hand-carried from the Station by

the case officer and transferred during clandestine meetings.

Receipts are obtained for all disbursements according to

7. Annexes:

None.

SECRET

---

## Page 34

14-0000

PREVIOUS PROJECT ACTION

---

## Page 35

14-00000

SECKET

DD/P 2.2232

2. 6 MAY 1970

MEMORANDUM FOR: Chief, Western Hemlaphere Division

SUBJECT

FI Projoct LIEMPTY

FY 1970 Amendment

FY 1971 Renewal

REFERENCE

C/ FI Memorandum for ADD/P, datec

19 May 1970, Subject: "Renewal ol

Project LIEMPTY."

1. On 22 May 1970. I approved subject action for the

amounts reguested with the understanding that the

tormination payments to GERENDE and his wife will be

on a monthly basis as described in paragraph i oi referent.

2. Mesars John C. Murray and Charles M. Bounda

attended the project meeting.

Gil Wan

Cord Meyer

Assistant Deputy Director for Plans

SEGRET

---

## Page 36

MPS/BG/FI/ALKatein/sw

Distribution:

O & 1 - Addressee

1 - ADD/P

1 - FI/OPS

1 - CI/OPS

1 - WH/i/.

1 - SB/X/WH

1 - CCS/PRG

1 - DDP/NSP

•1 - MPS/ BG

---

## Page 37

SECRET

Filled try

DREADI: ATIONAL

THERENT

C/OH/FI

c/oE/Plans

'Te"

PROJECT ACTION

LIEMPTY

tt'

OF

ACTION

1

APPROVAL

AMENDMENI

10 5x70

Western Hemisphere Division

CATENSION

TERMIMATION

PILLO STATION

Mexico City

BRANCH

One

CASE OFFICER

Jack

Barry

ROOM NO.

BUILDING

3E05

Has.

CONCURRENCES OF DIVISIONS

DESK

TEL

DATE

10 Apr11 70

RED

PLAGE

1973 4167

DATES

John c. Murray Chale, m Briali

10 801

Elliotte. C. Want

he 101375

Richard

1B. Wright

Richard S.

Robert B. Moore ^

W1ll1am V. Broe

10 AP.2

4/19

4-13-70

20/4/30

4/21

CONCURRENCES OF OTHER COMPONENTS

Organiantional Elemene and &

niversonco Obtained by Original

DATES

LEE

Vielda

/S/ Frank W.

_Hughes

14|4

19 MAY 1972. 9 MAY 19/0

11 May 70

1S/ Charles Beckman

IS/ Gerard Droller

8 May 70

24/4/70

Mr NO

ATTACHED

ЧЕНО

METACHER

FI Staff

CI Stair

COS: PAG

DDPINSP

C/-UPS/ BG

I'JULY

1969

1 July

1970

AT MERITY

A/DDP

30

Jine, 1870

June

¡SIGNATURE

APPROVAL

ACTION

$10,4981179

23,635

SECRET

FY

19 70

1971

20 may 1o

TOTAL

FUNGS AUTHE

19,468

$ 23.635

DATE

22 Way 10

151

---

## Page 38

4-00000

SECRET

LEMPTY - Muxico city,

dan Suppor

- Fiscal. Year

1966

1967

1968

1969

1970

Moxico

-- Photorraphic Surveillance

FY 1971, Cost $23,635.

Approved

Obligated

$13,145

15,000

42,185

13,520

38,970

$36,294

12,082

43,158

11,416

19,468 (Projected)

Purpose:

Projoct LIENPTY supports a visual and photographic

surveillance of the Soviot Embassy in Mexico City.

The

aim is to identify and covor the moverents of porsons

entering and leaving the Embassy, including Soviets and

visitors.

The intelligenco collected tarough such activity

contributes to the Station's overall Soviet oporations

program, mainly in support of Priority A-1, but to some

extent, Priority A-4, of the Operating Directive for Netico.

Description:

1.

The Project operates

througb tro fixed basehousa

surveillance posts,

a suall photographic laboratory, a

principal agent, and six sub-agents.

A team of four sud-

agents, operating from a basehouse,

maintains yisual and

photographic surveillance of

the Sovier Embassy front

entranco.

One sub-agent,

operating fren a second base-

house,

covers an area in

back of the snbassy,

where Soviet

officials meet,

play. and work.

These units.

photograph all

persons moving

in or out of the specific targot areas.

They

also maintain logs and provide written reports

on observed

nctivity.

All of this material is passed to the principal

agent, who passes the film

to another sub-agent for process-

ing at a laboratory equipped for that purpose.

After the

film is processed

and

printed, the pricipal agent passes

the finished product, plus written reports and logs, to the

Station case

officer.

A brief description

of each

unit,.

each agent and his role in the operation follows.

SECRET

---

## Page 39

SECRET

LILYRIC (MEXI-132) is a basehouso located noar

the tront; of the soviet Embassy.

This house has beon

operation since October 1966.

It is rented through

1n

LIMOUSINE (201-5762), a cleared Anerican businessman. He

is the ostensible owner of record and, as the landlörd,

collects rent from the tenants and then passes it to the

Station case officor.

LIEMPTY-13 and his

paragraph 3 below) live in the LILYRIC hous and conduct

their

survolllance.operatlon_ from.it during daylight hours

(0800-1800).-

3. LIENPTY-13 (201-119961) is the koy member of the

LILYRIC baschouse

team.:

He maintains contact with tho

principal agent

and does

some photugraphic work. Howover,

becauso LIEMPTY-13 is employed outside

as

an

Industrial

engineor, ho is

unable to spend much time operating the

LILYRIC photographic "equipmont, and most of this work 18

done by his wife, LIEMPTY-14, and their sons, LIEIPTY-26

and LIEMPTY-27 (soe paragraphs i, 5 and 6 bolow).

LIEMPTY-14 (201-167567) is the main photographor

and obsorver at the LILYRIC baschouse.

She works closely.

with her husband, LIEMPTY-13, in running the operation,

including the preparation of observation reports and logs.

She also does the LILYRIC housekceping, as any housowife

would do.

5.'

LIEMPTY-26 (201-762111), the son of LIEMPTY-13 and

LIENPTY-14, has

been a student at the Mexican Technological

Institute:

In his spare time

he operates tho LILYRIC photo-

graphic equipment, and helps LIENPTY-11 in maintaining the

arrival and departure logs of target personalities.

LIEMPTY-27 (201-762112), another son of LIEMPTY-13

and LIEMPTY-14,

scribes notes into a finished typewritten log of ovents.

7. LICALLA (MEXI-03) Is a basehouse located behind

•the Soviet Embassy:

It has been in operation

since 1957.

The building, a four-unit affaii, collectively known

LIMUST, 1s Agency owned.

purchased through

LIMOUSINE in

Septenber 1957, and the property is in his

The LICALLA site is

occupied by LIEMPTY-9 (see

paragraph 8

below) and he runs the surveillance operation

SECRET

---

## Page 40

SEE 3T

-3-

LIEMPTY -9 (201-13615) 1s the only agent operating

from the LICALLA site.

He does all the photograpis, main-

tains logs and prepares observation reports.

He also main-

tains contact with the principal agent.

LIENPTY-9 is a

part-time insurance salesman and is self-employed in the s:

accounting business, which he conducts at the LICAll site.

9. ' Raymond H. GERENDE (201-119523) has been the

principal agent for this project.

He is a Mexican national

contract agent who is self-employed as an English teacher

and also works as & salesman

for a light bulb manufacturer.

GERENDE has been mainly responsible for maintainins contact

with the LIEMPTY agents, passing instructions

to them, and

collecting the product for passing to the Station case

officer.

He has also paid them and handled all other

administrative matters.

He is being

terminated by the end

of FY 1970 for security reasons (see Problems, paragraph 1).

10..

Bruce H. FERNALD (P) (201-008189) replaced

GERENDE

(see paragraph 9 above) as the project's principal

agent in early December 1969. FERNALD, a U.S. citizen born

in June 1915, operates under

non-official cover as a retired

immigrant.

He is responsible for maintaining contact with

the LIFPTY agents and collecting the product for passing

to the Station case officer.

responsible. 10-

He also handles administrative

matters,

including agent salary payments.

• FERNALD is

financially covered under Project AEMAGNIFY.

The LIEMPTY photographic laboratory (NEVI-137) 1s

in a room at GERENDE's residence.

It is equipped

to process the photographs taken by the LIEMPTY surveillance

units.

The work is done by LIEVPTY-4.

(See paragraph 12

below). Since GERENDE will be terminated by the end: of

FY 1970, the Station is taking steps to establish & new

LIEUPTY photographic laboratory at a new safesite.

12. LIEMPTY- (201-117967) processes

all the photo-

graphic film taken by the LIEUPTY photographers and makes

the number of prints required.

He does this work at night

in the LIENPTY photographic laboratory.

He is self-employed

as a medical doctor, and he is a bröther-in-law of GERENDE,

in whose home the laboratory

is located.

SES 97

---

## Page 41

14-00000

.-4-

Changes:

1:

The LIENTRAP mobile unit, consisting of LIEMPTY-10

and LIEMPTY-ll, is being removed from Project LIEMPTY and

placed under Project LIEMBRICE, which supports a unilateral

physical

The purpose of this change i8

to increase the size of the LIEMBRACE team in order to meet

a growing demand for operational surveillance support from

the various

The transfer w1ll

become effective at the beginning of FY 1971 and both

FY 1971 project budgets have been adjusted to cover financial

aspects of the

change.

2.

Raymond Il, GERENDE was removed as the LIEMPTY

principal agent in

early December 1969 owing to a security

problem (sec Problems, paragraph 1). He was replaced on

9. December 1969 by

Bruce. H.

FERNALD, a career agent oper-

ating under cover as a retired immigrant.

The change has

caused some

delay in the receipt of photographs because

FERNALD is unable to meet LIEMPTY agents as frequently as

GERENDE had met them, but operational effectiveness is not

significantly reduced by this delay.

The key issue is that

security and reliability of the principal agent have improved

considerably.

Accomplishments:

1.

Project LIEMPTY has provided continuous daily

photographic.and

visual coverage

(Monday through

Saturday)

of the tront entrance and rear areas of the Soviet Embassy

•in Mexico City.

All Soviet personnel and their visitorg

entering or

leaving the Embassy have been photographed.

In

addition, visual

surveillance reports were prepared when

appropriate.

These photographs and reports have contributed.

essential operational support to the Station's

Soviet oper-

ations program:

Recently, LIEMPTY photographs were exclusively used

an updated mugbook on Soviet officials in Mexico.

The book has been loaned to the FBI, AF/OSI and the 902nd

Military Intelligence Group

for operational use in debriefing

their agents engaged in dangle operations

•operations against the Soviet services in

Mexico City.

One

902nd controlled agent was identified from an IIEMPTY

photo-

graph taken when the agent tried to contact the Soviets at

---

## Page 42

4-00000

SECRET

the soviet embasay in mexico city.

Similarly, an AF/OSI

controlled ayont schoduled to moot a Soviet contact wag

unable to do so owtig to illness, but LIEMPTY photographed

another person who appoarod at the moeting site and this

person is bellevod to be the agent's Soviet case officer.

Such coverago has beon helpful to the 902nd, AF/OSI and

the FBI

in running thoir controlled doublo agent operation:

against the Sovlets in Moxico.

Within one weok after a biannual change of license

plates on Soviet Embassy vehiclos, LIEMPTY had provided a

complete list of the new tag numbors, along with a complete

identification of the vehicles.

Among other things,

anabled the station to identify the companions of Aleksandi

Aleksandrovich NIKITIN, a known KGB Officer, during his

last few days in Moxico.

LIEMPTY has also dotormined that newcomers to the

Enbassy frequently gravitate to groupings with their

• RIS colleagues in the "safoty" of the Embassy backyard.

This fact enabled the Station. to mako certain tontative

KGB and GRU identifications.

In addition,

certain TDYers

have been linked up with their escort officers and clues

to personal relationships have occasionally been exploited.

In the fiold of Sovict patterns of activity and

associations, LIEMPTY has been able to report accurate

changes in cortain specific cases. LIEMPTY coverage showed

that NIKITIN, montioned in paragraph 3 above, changed his

activity pattern following

the defection of Raisa

Yerofeyevna KISELNIKOVA, former secretary in the Commercial

Mission in Mexico.

Oleg NECHIPORENKO,

a Second Secretary at the Embassy and a known KGB officer.

LIEuPTY also provided information

on the patterns and

associations of Yurly Viktorovich KUPLYANOV, & Known KGB

officer and on Valeriy Vladimirovich SOKOLIN, a known GRU

officer.

Coverage of Vladimir Viktorovich GORDEYEV, a

who some of his associates were.

In the case of Oleg

Konstantinovich IGNATYEV,

fros Caracas, Venezuela, LIEMPTY was able to observe

IGNAMEY entering and leaving in the company of Svyastoslav

Fedorovich KUZNETSOV, Press 'Attache and First Secretary of

the Soviet Embassy.

IGNATYEV also visited the Soviet Embassy

SECRET

---

## Page 43

14-00000

• =

-6-

several other times during his stay in Mexico Clay and

contact with other known. Soviet intelligence

officers

untie visiting.

This kind of information is a basic

contribution

to the Station's

continuing efforts to

1dentify

and assess

certain

Soviets for possible

recruitment or defection.

At Headquarters,

the Soviet Bloc Division uses

LIEMPTY photographs, particularly photographs of Soviet

Embassy officials,

for identification purposes in con-

nection with defector cases.

The LIEMPTY material also

keeps the Station's Sovict section up-to-date on which

Soviet officers have been in the Embassy, which ones have

been away; who has used which car; who has been in contact

whom; and other similar information useful in the

conduct of Soviet operations.

Problems:

A security problem has developed involving

Raymond H. GERENDE.

According to GERENDE, his wife wants

a divorce, apparently based mainly on incompatability of

personalities.

The problem basically is that both want

of the children and this has sparked a dispute

that has become more bitter and violent daily.

In addition,

the monetary settlement is in dispute.

compounded by the fact that GERENDE's wife knows in some

considerable detail of GERENDE's activities on behaif of

Thus, if the case does go to court, it could

lead to the surfacing of GERENDE'S Agency employment and

possible compromise of LILYRIC, LICALLA and LIENTRAP.

Even if the case does not go to court, GERENDE's wife could

expose him as an Agency employee.

Since late 1969, Mexico

Cit5

Station has been in touch with both GERENDE and his

wife on this problem,

and every effort is being made by

the Station to have both parties settle the divorce out of

court, and to protect GERENDE's cover and that of the

project.

After weighing all factors, it has been decided

that continued employment of GERENDE is not an acceptable

and the decision has been reached to terminate him

GERENDE will be paid a termination

---

## Page 44

=7=

"project security.

In addition, his wife, LIELPTY-19 will

e given $2,500 as a security measure designed to keep her

from revealing what she knows about project operations.

The FY 1970 budget is being amended to cover this amount.

Other aspects of security continue relatively

unchanged.

All the agents still have jobs to backstop

their Agency wages.

The Station is compartmented from

the action agents through FERNALD, whose contact with the

subayents is reasonably well covered by his status as a

FERNALD has been meeting LIENPTY-9 and

,ITEMPY-13 since 9 December 1969.

Brief meetings are held

once each week at pre-arranged times and places, well away

Occasionally emergency meetings are

called, by phone,

if special coverage is desired. FERNALD

LIEUPTY-* to exchange films and prints. These

meetings are held weekly at pre-arranged times and places.

FERNALD can change meeting plans by calling LIEMPTY-4

directly by

telephone.

In addition, LIENPTY-4 has been

given a special extension in the Station through which he

may call as "Di'.

Carios" to leave a message for "Victor'

(FERNALD) .

Station case officer maintains weekly clan-

destine contact with FERNALD in order to manage the oper-

ation and collect the product.

Coordination:

LIEMPTY®

Ambassador Nebride has not been briefed on Project

Future Plans:

coverage and visual surveillance reports on the daily

movements, personal associations, and habit patterns of

officials.

the project mecha-

nism will continue as it has in the past, except that Bruce

will be in charge of the

The Project does not include an u,-dated plan for

emergency contact during violent action or government over

The Station has been requested to prepare an up-

dated emergency contact plan and submit it to Headquarters

• in the first FY 1971 quarterly progress report.

---

## Page 45

$80:27

-8-

Costs:

General: $23,635 1g requested for FY 1971.

It

1s requested. that the project be amended for Fy 1970 in the

amount of $10, 498

in order

2.

Project LieurrY is included ii

he Western Hemisphere Divigion's FY 1971 Operating Prograi

in the amount of $40,000.

Funds for the FY 1970 amendment

will be absorbed in the current WH Division's finance

allocation.

3. Project Budget:

Raymond H. GERENDE

Salary

LIESPTY-4 Salary

LIEMPTY-9 Salary

LIESPTY-10 Salary

LIENPTY-11 Salary

LIEMPTY-13 Salary

LIEMPTY-14 Salary

LIEPTY-26 Salary

LIEMPTY-27 Salary

LICALLA Safehouse Rent

, (MEXI-03)

LILYRIC Safehouse Rent

(MEXI-132)

Safehouse Utilities

GERENDE Dark Room Rent

(M:EXI-137)

MV-2823* and 2947

Property Maintenance and

Replacement

Photographic and Other

nristmas bonuse

IEMPTY-19 Terminatio

GERENDE Termination Bonus

TOTAL

FY 1970

Estimated

Obligations

$ 6,500

2,400

4,320

4,224

2,736

1,536

1,824

672.

1,728

1,248

2,880

1,100

960

1,200

500

2,090

2,500

10,000

$49, 168

FY 1971

Request

FY 1972

Projection.

$

-0-

2, 750

1,690

2,006

739

1,901

1,373

2, 880

1,201

-0-

600

500

1,000

2,354

-0-

-0-

S23, 635**

$

-0-

2,640

4,752

-O-

-0-

1,690

2,006

739

1,901

1,373

-0-

500

1, 00

1,35

$23,735

---

## Page 46

Sarat,

-9-

Foreign Currency:

There is no special need for

foreign currency:

No non-CIA funds are used.

Christmas bonuses to all agents

count to be lotte be a te record a lone

of service.,

Iccountability: FERNALD accounts in detail to hi

case officer,

in turn submits receipts to the Statio

and certifies that funds were spent to cover expenses for

which it was intended.

8. Annexes: None

---

## Page 47

4-00001

SECRET

ORGANIZATIONAL

ERIMENT

-сінА

CHIATI

PROJECT ACTION

LISAPTY

TYPE OF ACTIÓN.

PROJECT

APPROVAL

AMTACMENT

R$ NEWAL

Heaters Henlapbere DlY1B1an

Hasico C1t8

• DESM

EXTENSION

CASE

JAC ДАТТУ

ROOM A0.

1101L0 THO

$803

Hge.

CONCURRENCES OF DIVISIONS

TYPES NAME ( D0,

инт.

DATE

110 Aрг1] 70

RIC

_FLACK

1979 4167

DATES

John:C. Murray.

Elllotte G. Mant

Richard B. HrAsht

RIChArd Be WelCH

Robert De Hoare

F11Z1Ra_Ve Broo

ATTATMER

COMCURRENCES OF OTHER COMPONEMTS

Then concurrence drained see

Yokwante

es: sane He low Only

or Gradineline Element

DATES

NEWO

LATTACHES

APPROVAL

1 Jule 1970

APPROVING

autood inT

A/DOP

SON 84810140400

30 June 1971 /s

ACTION

23, 835

19

1971

TOTAL TUNES ALTRICIATION

DATE

23, 639

SECRET

(5)

---

## Page 48

4-00000

CR:!

•ISHPTY - MexIco C18y, Hexle

Photographlo Survolllance

oan supporI

-- 78 1971, Cost $33, 833.

fLocal Year

Approvod

Obl1gatod

1968

$13,183

$38,394

1967

43,000

12,088

1068

43,183

48,158

1969

43,330

41,418

1970

38,970

19,188 (Projoctod)

Purpose:

PrOJACI IlLni supports? yluual and photographic

BurvOIllanCe of the Sovlot fabusay in Moxico Clty.

ala is to Idontity and cover tho novonenta of pursona

entering and loving the tabassy, Including Soviets and

The intelligence colloctod through auch autivity

contributos to tho Stagion's overall Soviet operations

malaly in support of Priorily A -1, but do some

extent, FItOrIty A-1, os tho Operating DirectIvo tor Moxico.

1.

The ProJect oporates through tyo fixed baschoubo

aurpalllance pogso, a mall photographic labaratory, a

priscipal agent, and six sub-agenta. A toRn of four sub-

ajents, aporatino iron a basalouse, maintains visual and

photagraphic survalllance of the 8ovlot Eabassy 1100t

entranCO.

one sub-agant, operatidy fIon a socone base-

Douse, covers an ired in back of the Embassy, where sovlet

astelals seet, play and vors.

Thoss units photesraph all

perSons Moving

in or out of the spuclfic targot areas:

They

alço maintain logs and providu aritten roports on abserved

All os thia matertal 1a passod to the priscipal

who passes the filM to another sub-agedt fOr procoss-

dog at a laboratory equipped for that purpose.

After the

gilm 15 procussed add pristod, the principul agent passan

the 1101ahod product, plus wiltson reports and logs, to the

statias case dificer.

A brief description of each unis,

each agent and dis rolo la the operation 101l05S.

SECRET

---

## Page 49

14-00000

LILTRIC (MAXI-133) 1s a basobouso locatod noar

front of

the savlot Embassy.

nis houso bra been lo

operation since october

1986.

It 13 rentod through

LIMOUSINE (201-5783), a cloared AborIcan busiDessan. Bo

1s the ostensiblo onner of record and, as the landlard,

LIEMPTY-13 and his faully (s00

paragraph 3 balON) 11v9 In the LILYRIC houso and conduct

their survalllance operation fros 18 during daylight hours

(0800-1800).

LIBMPTY-13 (301-119961) 18 8ho koy somber of tho

LILYRIC basehouso toan..

Ho saintalna contact vith tho

principal agent and does sone paotagraphic vork.

However,

becauso LIEPTY-13 18 employed outsido as an induntrial

engineer, he la unablo to spend such fluo operatiog the

LILYRIC photagraphic aguipment, and sost of this work la

dose by his o1fo, HIIMIPTY-14, and thelr sons, LIAIPTY-38

and LIBIPTY-27 (600 paragraphE d, 5 add 8 bolon).

LIENPTY-11 (201-167367) 19 tho aald photographer

and obseryor at tho LILiThiC basehouse.

she BorkE closely

w1th her husband, LIMPTY-13, In runslag the operation,

Including the preparation of

observation roparts and logs.

sha also does the LILYRIC housekeeplug, as any housesito

LIEMPTY-B6 (301-752111), the 800 OS LINPTY-13 and

LIEMPTY-11, has been a asudent at tho Hexicas Tochoologioal

Inatitute.

In his sparo tino ho operatestbe LILYRIC photo-

graphic equipmens, and helps LISHPTY-ld li maintalsing the

arrival and departure logo o1 sargot personal18100.

B. LIEUPTY-37 (201-762112), another son of LISHTY-1S

and LIEAPTY-11, has been a prep schoul student. Ho asslats

1n operating the LILYRIC photographic equiprent and tran-

Baribes sotos into a finished typewritton lag of events.

• LICALLA (MEXI-O3) 1a a buschouso locatod bohini

the soulet Babassy.

It bus been In operation EIDco 1957

The bulldog, a four-unit affalr, collectivoly knoes as

LIMUST, 1s Agency ouned.

It s'as purchased througà

LINOUSINS in Soptesber 1957, and the proporty 1e 1u1 bil

Tho LICALLA site 11 occupied by LIDNPTY-9 (30€

paragraph 8 belos) and ho ruDe the survalllanco oparation

---

## Page 50

14-00000

S.C.2T

-3-

LIEMPTY-9 (201-136151) 18 tbe only ayent operating

Be doeg all

talna logs and prepares observation reports.

tains contact with the principal agent.

part-tine Insurance salesuan and 18 self-employed in the

accounting business, which he conducts at the LICALlA site.

2a223

the photography, maln-

He also aaln-

LIEMPTY-9 18 8

9.

Raymond 8. GERENDE (201-119523)

principal agent for this project.

le 18 a Mexican national

contract agent who la sell-employed as an English tescher

and also works

ag a salesman for a ligbt bulb manufncturer.

GERENDE bag been mainly responsible for maintaining contact

with the LIEMpTY agents, paeslog lastructions

collecting the product fur passing to the Station case

officer.

He has also paid then and handled all other

adninistrative matters.

He is belng terminated by the end

01 FY 1970 for gecurlty reasons (see Problers, paragraph l).

10.

Bruce H. FERNALD (P) (201-008189) replaced

GERENDE (See parDRIap)) Above) as

the project's principal

agent in early December 1969.

PERHALD, a U.g. Cltizen born

1n June 1918, operates under non-official cover ag a retired

Imnigrant.

He is responalble for maintaining contact eith

the LIBiPTY agents and collecting the product for passlng

to the station case officer.

He alao handles administrative

matters, lucluding agent salary paguents.

FERNALD 18

financially covered under Project AELAGNIFY.

The LIMPTY photographic laboratory (MEXI-137) 1&

located in a room at GERENDE's reBidence.

It 18 equipped

to process the photographs taken by the LIENITY survelllance

18 done by LIEMPTY-4.

(See paragraph 12

Since GERINDE will be teralnated by the end of

FY 1970, the Station 19 taking stops to establlah a new

LIEMPTY photographic laboratory at a new satesite.

LISNPTY-1 (201-117967) processes all the photo-

graphic filn taken by the LIEMPTY photographers and nakes

the number of prints required. He does this work at night

in the LIEMPTY photographic laboratory.

He is self-enployed

and he 1s a brother-in-law of GERENDE,

whoge home the laboratory la locatod.

---

## Page 51

14-00000

Changes:

The Lilithap mobile unft, consiating of LIEAPTY-1d

and LIEMPXY-11, la being removed from Project LLEMPTY and

placed under Project LIEMBRACE, which supports a unilateral

physical surveillance team.. The purpose of this change 19

to Increase the alze of the LIEMBRACE team in order to meet

a growing demand for operational survelllance support 1rom

the varlous station operating sections.

become effective at the begionior of FY 1971 and both

FY 1971 project budgets have been adjusted to cover financial

-aspecta of the chango.

2.

Raymond H. GERENDE wAS removed as the LIEMPTY '

principal agent In early December 1969 owing to a security

problem (900

9 December 1909 by Bruce H. FERNALD, a career agent oper-

ating under cover an a retired immigrant.

caused some delay in the receipt of photographs because

FERNALD 18 unable to meet LIEUPTY agents as frequently as

GERENDE had met them, but operational effectiveness is not

sigalficantly reduced by this delay.

security and fellability of the principal agent have improved

congiderably.

Accomplishnente:

1.

PIOjOCE LIMPTY has provided continuous dally

photographic and visual coverage (Monday through Saturday)

of the front entrance and rear arens of the Soviet Embaasy

1n Mexico City.

All Boviet personnel and their visitors

entering of leaving the Embassy save been photographed. In

addition, visual surveillance reports were prepared when

appropriate.

These photographs and reports

have contributed

essential operational support to the Station'a Soviet oper-

ationa progran.

Recently, LIEMPTY photographs were exclusively used

to produce an updated mugbook on Soviet ofiiciala In Mexico.

The book has been loaned to the FBI, AF/OSI and the 90and

Military Intelligence Group for operational use In debrieling

thelr agents engaged in dangle operations and double agent

operations agatost the soviot services 1n Mexico City.

One

902nd controlled agent wag Identified from an LIEMPTY photo-

agent tried to contact the Soviets at

S22.61

---

## Page 52

DEINET

-3-

the sovlot Inbausy 11 Mexico City.

Biallarly, an AF/081

controllod ayent schedulod to nect a soylot contact vas

unable to do so oving to illnose, but LIEUPTY photosraphed

another porson who appeared at the noting site and

this

porson la bolioved to bo the agent's sovior case officer.

such coverage han been helplul to the 902nd, Af/OSI and

_..the FBI 1n runslag thelr controlled double agent operationa

against the sovlets in toxico.

3. #ithin one week aftor a biannual chango of licenso

platos on sovlet

Babassy vehicles, LlEtiTY had provided a

complete lint of the now tay nunbers, along mith a complete

identification of the vonicles. Anong other thinga, this

enabled tho station to identify the companious of Aleksandr

Aleksandrovich HIKITIN, a kaown KGB officer, during bie

last few days 1a Moxico.

1. LlEMPTY has also deteruined that neucouera to tho

30y1et labassy irequently gravitato to groupidys

RIs colleagues in the "aaloty" of the tabassy backyard.

This inct enablod tho station to make certain tentative

Kos and GRU identificationg.

In addition, certain TDYerS

bave been linked up vith their escort officers and clues

to personal relationships have occasionally been esploited.

5.

In the 11old of Soviet patterns of activity and

associations, LIEUPTY has been able to report accurato

changes in certain apecific caBes. LIMPTY covurage showed

that NIKITIN, nentioned in paragraph 3 above, changed hig

activity pattern followlos the defrction of Ralea

Yerofeyevon KIRLNIKOVA, fOrnor seCretary in the Commercial

Mission In Mcalco.

Tho sure applios to Oleg NECHIPORENKO,

a Second deerutary at the Babagyy and a known KGB officor.

IlEupTY also provided information on the patterns and

associationa of Yurly Viktorovich NUPLYAKOV, a KDOWD KOB

officer and on Valerly Vladinirovich SOKOLIN, & KnOWn GRU

officer.

Coverage of Vladiair Viktorovich GONDEYEV, A

suspect kGB officer, showed that ho old, in fact, woris in a

"restricted arca"

st the sovlot Embassy

end also establighed

sho sone of his sssociates were.

In the case of Oleg

SOnBtantInOViCh ICATilY, UNO nad arriveO in MexiCo dity

Iron Caracas, Venezuela,

LINeTY was nblo to observe

IGMATYEV enturiDg and leaving in the conpany of Sugastoslay

Fedorovich KUATTSOY, Press Attache and Flest Secretary of

the sovier ambassy.

IGNATYEV also visitud the goviat Inbausy

SECRET

---

## Page 53

At Headquarters, the Sorier Bloc Division Uses

LIEuPT? paotograpl, particularly eautographs of soviet

Embassy officials, for identiiication purposes in con

secilon vlta detector cases.

TBe LISUPTY unterial s130

keeps the Station's soviet section ip-to date on ubich

soviet officerg have been in the Jatasgy, which ones save

been away; who has used shich chi: sho has been in cantact

with room; and other sinilar infarmation useful 10 the

conduct of

Soviet operations.

A security probles has dereloped Involviag

Rayaand H. GERENDE.

recording to GIRSiDS, his wife saits

a divorce, apparently based sainly or incompatability of

personalities.

The probles basically is that both rant

custody of the children and this bas sparked a dispute

that has becone nore bitter and riolent daily. In addition,

the sonetary settlesent io ln dispate.

the probled is

cospounded by the fact that GERs's nife kuows 1D sose

considerable detall of GERENDE's activities on bebali of

tbe Agency.

Thus, if the case does go to court, it could

lead to the surfacing of caRmine's igency enploysent and

possible comprouise

Of LILYRIC,

LICALLA And LIENTRAP.

Even if the

• GRENDE'& alfe could

expose bin as an Agency employee.

case does not go to courface late 1965, Mexico

CIty Station has

in touch with both GERINDS sud Dis

ulte on this probica, and every effort 1s being sade oy

the Station to have both parties settle the divorce out uf

that continue cop ope l desert a at on a estata

rist, and the decision has beer resceed to terminate hin

by the end 0. 0% 107 is gears service, about d,50 more

GERSIDE S11l se pald a teralastion

bonus of $10,000 fur.

38,750 his contract caiis for, in order to easure

bat the ternination 1s anicable end thereby pregerte

---

## Page 54

SEE ZT

-7-

project security." In addition, bia Mife, LIEMPTY-19 M111

be given $3,500 as a security measure designed to keep her

from revealing uhat she knous about project operations.

The fY 1970 budget la being amended to cover this inount.

Other aspects of security continue relatively

unchanged.

All the agents atill have jobs to backston

their Agency wages.

The Station is compartmented from

the action agents through FERNALD, those contact uita the

sub agents 18 reasonably yell covered by his atatus as a

retired Innigrants

FERNALD BAS beeN Beeting LIEMPTY-9 and

LITEHPY-13 since 9 December 1969.

Brlet neetings are hold

once each week at pre-arranged tlues and places, vell away

Iron the target area.

Occasloaally emergency meetingg are

called, by phone, 11 special coverage la desired. FERNALD

LIKMPTY-4 to exchange 1llas and prints.

motings aro beld neckly at pre arranged times and places.

FEMALD CAn Change Beetlag plans

by calling LIEUPTY-d

directly by telephone.

In addltion, LIFPTY-d has been

given a special extension in the station through ubico he

¿may call ag "Dr. Carlos'' to leave a nessage for "victor"

(FERNALD).

station case officer naintains veckly clan

destine contact with FERNALD in order to manage the opor-

ation and collect the product.

Coordination:

Ambassador NcBride has not been briefed on Project

LIEUPTY.

Future Plane:

The survelllance units are expected to continue to

produce valuable intormation in the form of photographle

coverage and visual survelllance reports on the daily

movements, personal, associations, and habit patteras of

persons frequenting the Soviet Embassy, including Soulel

Operational procedures and the project necha-

nign vill continue as lt has in the past, except that Bruce

a new prIncipal agent.

w111 be 1u charge of ide

operation

during violent action or govcrnment over

The Station has been requested to prepare an up

---

## Page 55

S20 LT

gosto:

•General:

$23, 635 are requested for fY 1971.

1s irquented that

the project be amended for fY 1970 la tbe

RonEt of 810, 498

(iron $38,970 to 349,168) 1n order to

corer teralaation

paymenta to Raynond 8. GRENDE and hie

Bite, LIEKPTT-19.

source of Funda: Project LIEUPTY 18 Included 1n

the western real sphere Birsalone Y 1971 Operating Program

1a the agount of $10,000. Funda for the fY 1970 amendment

vill be absorbed 1n the current iN DivIaIon'a Ilnanca

allocatlon.

3. Project Budget:

FY 1971

Request

FY 1972

Projection

Esymond H. GERENDE

salary

LIESPTY-4 Salary

LIEHPTY-9 SALATY

SISHPTY-10 LalALY

LIBIPTY-11 SalarY

LIEXPTY-13 Balary

LISIPTY-14 Balary

LISUPTY-B6 Salary

LISIPTY-27 Balary

LICALLA Safehouse Rent

(HEXI-D3)

WILTRIC SAlebouse Rent

(HXX1-132)

Safehouse Utillties

GRANDS Dark Room Rent

(XEXI-137)

17-28238 and 2947

Maintenance

Property Maintenance and

Beplacement

Phosographic and Other

Sappllen

Christnas Bonuses

WESPTY-19 Teralnation

Bonus

GIRENDE Teraination donus

TOTAL

FY 1970

Estimated

Ob1188t1008

$ 8,500

3,400

4,320

1,224

3,738

1,836

1,834

672

1,728

1,348

1, 880

960

1,800

500

1,000

8, 140

3, 500

10,000

$19,168

-0-

3, 640

4,752

-0-

1,690

3.00€

739

1,901

1,373

8,884

1,201

-0-

-0-

739

-0-

600

500

., 00

1,000

1,35

2,354

-o-

-o-

523,6350°

823, 735

=$DECICABE

His replacesent

---

## Page 56

14-00000

S50-T

= 9.

d.

Foreign Currency:

There to no special need for

foreign currency.

No non-CIA funds are used.

Connitnents: Christing bonuses to all agente

totaling to, 354 for TY 1971, and termination pad lengt

amount to be determined by the agents record and length

of serylce.

Finding:

Funds are hand-carried from the Station

case officer to

TERNALD, and froM FERNALD to the sub-agente.

The transfer of funds takes place under clandestine meeting

conditions, and appropriate security measures are alwaya

Accountability: FiNALD accounts in detail to hi

case officer,

who In

urn submits receipta to the statio

and certifies that funds were spent to cover expenses for

which It was intended.

8. Annexes: None

---

## Page 57

• UNCLASSIFIED

UTERNAL

TE ONLY

COP- gENTIAL

SECRET

ROUTING AND RECORD SHEET

SURICT: (Opponed)

FROMA..

LIEUPTY Project Renewal Request

EXTENSION

но

WH/1/Robert Hazen

4167

10 Apx1l 1970

C/WH/1

2. C/WH/BSP

3.

C/WH/LOG

C/WH/SS

3.

SB/X/WH

C/WH/RE

7.

C/WH/FI

C/WH/Plans

9.

C/WHD

80.

WH/FI

DATE

NMAL

РОКИЛАСКО

10 Auro

10188

1|13

1-2:

Please take the exlin

2.4).

LIARNICA.

ions

113-20 0

4 - 100 = - 2

4/15

18 Air ii9 Kipl

21 APR 110/2,

Пт.

Joth

7411 Aps/sagem.

6-7

22 AP WJ

¿ 8 MAY 1970

12.

Fill inpre as copy

13.

WH/F1 303113

TA.

iS.

610 reNous

SECRET

CONFIDENTIAL

INTERNAL

USE ONLY

UNCiASSINED

---

## Page 58

14-00000

PROJECT*

LIEMPTY

CASE ONFICRA

ACTION

APPROVAL

XI REMEDAL

AMEMOMENT

EXTEMBION

TERMINATIDO

ROUTING OFFICE CONKINTS

SECRET

STAFF R. VIEW OF FI/CI: PROJECT

FY 70 Amendment $10, 498

FY 7! Renewal

323, 635

INTENSION

1161

STATION

TARORT AREA

Meilan City

APPROVAL

Mexico

LEVER

DIVINION OR

HOOM

З Е 05

oct

MPS/BQ/FI-CI

Projecte

3 С 43

25 Apr 10-

23 Apr 10

RECRIVED DOP/TO

FORMANOLO

DEADLIME

REVIENINE

CONTONENTS.

801/078.

Ті [ссь

NSP

COMMENT FOR INTERMR: STARE UNA (NOI 8O dU POrMATE

Dinlalon)

COMMENTE AND RECONCINDATIONS (TO dO POrMArA tO lDO DIVIDIOR)

The clutátt concurs in the renewal of this extreely valunble

operational

sunnort project.

The staff

desires to be lept informad on

all socurity developments and repercussions resaltine fron the divorce

probleins

continue its all our offorts to keep

2e stafe urges the station to

this divorce out re the courts.

is dand div.

DA?: 12 MN 1970-

GATE

3.67 526••

?!

SECRET

119.20.

---

## Page 59

14-00000

''i"

SECRET.

18 MAY 1570

'MEMORANDUM YOR: Assistant Deputy Director for Plang

: HPS/BG

THROUGH

SUBJECT

Renewal of Project LIEUPTY

. WH Division requests renewal of Mexico City Station's

Operational Support Project, LIEMPTY, for $23,635 for Fiscal

Year 1971 and a $10,498 amendment for FY 1970 to cover termin-

ation payments to a former Principal Agent and his wife.

yoar LIEMPTY was approved for $38,970.

One agont termination

and the trangter of the cost of a mobile surveillance unit to

another projoct are responsible for the reduced FY 1971 request.

2.

'LIEMPTY supports a visual and photographic surveil-

lance of the Soviet Embassy in Mexico City.

It includes a

Principal Agent, Raymond H. GERENDE (P), and 6 subagents who

maintain two separate safehouses, one in front and one in

the rear of the Soviet Embassy,

from which anyone entering or

leaving the Embassy can be observed and photographed.

various members of the team handle and service the photographic

equipment, develap and print photographs, keep observation

reports. and logs, including the arrival and departure of tar-

get persons; and maintain the two safehouses mentioned above.

3. This project does not provide positive intelligence,

except incidentally.

It 1s designed to furnish & running

Photographs taken by LIEMPTY personnel were

updated "mugbook" on Soviet officials in

Mexico which has been loaned to other Us security agencies

for operational use in activities targeted against Soviet

LIEMPTY agents also provided infor-

se yon snich enabled the station to identity the companions os

to identify the habit patterns of new

Inforaation of operational value concerning Soviet Embassy

activities.

4. A security problem, resulting in a Station decision

to restrict the activities of GERENDE, place him on half pay,

and replace him with a career agent (a valuable asset who

SECRET

tried i

Excluded nerd 249953:0

Cai paingers.

---

## Page 60

4-00000

SECRET

also handles SB operations) arose during the project year.

GERENDE

has been having marital difficulties which nay

end

in divorco.

Along with other incompatible features of the

marrlage, which have resulted in nunerous family lights,

there havo been long, bitter and violent arguments as to who

will have custody .of thelr 1 children and concerning a mone-

tary settlements: The Station has become Involved in these

altercations because GRENDE's "1fe 1s knowledgeable of h18

CIA relatlönship

and could, li she chose to do so, expose hiu

as an agency employee." She has promised to seop quiet but

there 18 no assurance

that she will do so.

In view of the

risk involved, should GERENDE'& wife expose his agency rela-

tionship and in view of the fact that, despite his 15 years

of service. and his undisputed ability and experience, other

unfavorable qualities militate against his retention,

the

Station is considering terminating GERENDE.

It is proposed

to pay him a termination bonus of $10,000 for 15 years of

service in accordance with Mexican law and hig wife

$2,500 as

a security measure designed to keep her quiet.

After discug-

sion with the dess, FI Staff belleves that,

1f GERENDE 18

paid the $10,000 termination noney, it should not be given to

him in one lump sum

but should be pald on a monthly basis,

the amount per month to be determined by the Station, thus

eliminating

the possibility of his squandering it all at

once and possibly coming back for more of the

same.

The same

procedure should be followed in the $2,500 payuent to hig

wife.

In both cases at least an element of control 1s

assured in that both GERENDE and his wife will know that con-

tinued receipt of their monthly payments will depend upon

their continued loyalty to the agency.

In the meantime, we

feed this man,

whose morale, and ability have been seriously

affected by his marital strife, given time,

can perhaps be

rehabilitated and

once again become a valuable Station asset.

This would

ensure his continued loyalty and give hin an income

out of which to pay his alinony. Aside from the foregoing

there were no other problems, security or otherwise.

All

meetings between the case officer and the new Principal Agent

are held under secure conditions,

or more often if necessary,

at prearranged dates, times and places.

Meetings between the

P/A and the subagents are held under similar conditions. The

Station has been requested to submit an updated emergency re-

contact plan to

be included in the first FY 1971 quarterly

program report for this project.

5.

Agents' salaries, safehouse rentals, notor vehicle

maintenance and travel, property maintenance

and Christmas

bonuses will total $23,635.

Despite the security aspects

related to the marital difficulties of the erstohile P/A,

SECRET

24868

---

## Page 61

14-00000

SECRET

th1s

1g

an excellent operation which has been described by

the Station as répresenting a highly effective and highly

useful support mechanim.

SB Division has stated that,

although relatively inexpensive, It la a very worthwhile and

valuable project.

FI Stall recommends approval uith the

stipulation that the. recommendation uith respect to payment

of termination: bonuses to GERENDE and his aife be carried out.

Attachment

Project

SECRET

---

## Page 62

4-00000

PREVIOUS PROJECT

ACTION

---

## Page 63

SECR

(When

Filled In)

DATE 3/ 3: 20

FUNDINO

NO..

¡ DOCUMENT A FOR

THIS PROJECT)

NOTIFICATION OF PROJECT APPROVAL ACTION

ATTENTION: FINANCE OFFICER

INFO:

TYPE OF ACTION PERIOD OF ACTION

STeL TO 22-22 AMOUNT B.

THIS FISCAL YEAR

NEW

PREVIOUS ACTION

RENEWAL

EXTENSTON =

TOTAL FISCAL YEAR APPROVAL

TERMINATION

AMENDMENT

OTHER

FUNDS AVAILABLE FOR HQS USE

FUNDS AVAILABLE FOR FIELD USE

* Funding steich A titte

38.970

2220

E2, vil

CHIEF, WH/B&F

2444187547475

.....

PROCESSED

APPROVED

HQS USE ONLY

TYPE OF ACTION

PERIOD

AMOUNT

(when i Red In)

---

## Page 64

NU...

R

E

(anen Filled

DATE

FUNDINO

In)

i-FINTRANTON OF PROJECT APPROVAL ACTION

ATTENTION: FINANCE UFF: CEY

ROTECT LLETPTY

TYPE OF AUTION

NEW

KENEWAL

FXTENSION

PERMINATION

AMENDMENT

FIN CI35-1002

PREVIOUS ACTION IN THIS FISCAL YEAR

TOTAL FISCAL YEAR APPROVAL

FUNDS AVAILABLE FOR

HOS

USE

FUNDS AVAILASLE FOR

FIELD USE

CHTEF, WH/R&F.

PROCESSED

APPROVED

H8S USE ONLY

TYPS OF ACTION

PERIOD

SECRET

when Filled In

AMOUNT

---

## Page 65

4-00000

SECRET

PROJECT APPROVAL NOTIFICATION

•CA

PROSKET

→ PROPRIETARY

DIRECT

•REA

ACTION

NEW PROJECT

AMENDMENT

MENEMAL

TERMINATION

EXTENBION

OTHER

APPROVINO AUTHORITY.

PERIOO OF APPROVAL

FROM

2 July 2969

CONDITIONA ON APPROVAL

DIVISION

ADDP

то 30 биго 2910

ORANCH

ОКАК

CASE OFFICER

Al Malans

AUTHORIZATION

TOTAL AMOUNT APPROVED

, 30,980

COOINCIAL

YMBOL

EXTENSION

3952,

AMOUNT

838,970

FY

1980

196

0035-2009

--.

SIGNATURE

UPS/OG

DATE

1 : Ai. 1969

DISTRIDUTION

FINANCE

FOR 849 UDIPORVIOUS

officEn

SECRET

MOS'aS

13)

---

## Page 66

SECRET

5 JUN 1969

MEMORANDUM FOR: Assistant Deputy Director for Plans

.: MPS/BG

THROUGH

SUBJECT

: FY 1970 Renewal of Project LIEMPTY for $38,970

project LIEMPTY, now in its eleventh year, is the Mexican

Station's operation which provides visual and photographic survell-

lance of the Soviet Embassy from safehouses at the front entrance

and back of the building,

as tell as from a mobile unit.

All Soviet

personnel and their visitors coming to the Embassy are photographed.

From 1 November 1967 to 31 December 1968, approximately 21,367 photo-

graphs were taken and thousands of pages of surveillance reports were

completed by personnel in this project. SB Division is pleased with

the quantity and quality of the photographs and the Station finds them

useful for operational purposes against the SB target.

During the

past year several U.S. citizens entered the Soviet installation in

Mexico City and their photographs were identified by the FBI. There

is a good relationship between the Station and the FBI in Mexico City

and appropriately sterilized phetographs are passed locally.

2. There have been no significant security problems.

3. The only changes in the project have been the elimination of

one of the safehouses, which was used as an observation post, and

termination of the agent who attended it.

No real loss resulted from

this change since the safehouse was so located that photographs taken

from it overlapped those taken from another safehouse.

The agent who

erviced the facility was getting too old to do an efficient job an

was terminated amicably.

Ilso during the past year a new agent wa:

added to the project.

4. Total funds requested for FY 1970 are $38,970. Salaries and

legally required bonuses for nine agents come to $30,080; safehouse

$5,000 vehicle was purchased in FY 1969 and none is needed in

FY 1970 which accounts for the reduction in costs for the present year.

SECRET

Ereister 8087 Artreatie

+961212/9tca1968

---

## Page 67

SECRET

Project LIEMPTY contributes substantially to the Mexican

Station's S8 effort.

The occasional

identification of U.S, nationals

in contact with the Soviets could have an important bearing on National

securfty.

The operation ts handled by an experienced and capable,

outside contract agent under the direction of a Station officer which

provides good security and personnel economy. It is a well managed and

tronse ive Start recoends apprechanism necessary to Station opera-

FI Staff recommends approval.

Punch Sx

Peer de Silva

Chief

Foreign Intelligence

Attachment

project

SECRET

---

## Page 68

SECRET

STAFF REVIEW OF FI/CI PROJECT

FUNDS

PROJECT

•WEMPTY

CASE OPFICEN

Al Malono

O1N1S10N

WH

ACTION

APPROVAL

ANAMOMENT

EXTEMBION

TERMINATION

ROUTINO OFFICE COMAEMTS

$38,970

$954

ROOM

3E 04

STATION

TAROET AREA

APPROVAL

MEXICACITY

LEVEL

DIVISION ON STATE

ODP

/INT

OCI

1D

• "Wan Toi

NPS/BG/FI-CI

Frojecta

3 C 43

ASCEIVED DOPIPO

FORDANOLD

DEADL IME

ALTURMEO

REVIENINA COMPONENTS

X ccs

LT MAY 69

27 May 69

OTHER

OPSER/P

CORDIAT FOR INTRRNAL STATE UNE (NOl lO do formerd lo

ena Dielalons

FRAMENTS AND RECOMMENDATIONS (TO dO foreard lo ela DiviaÍon)

"The. C11tf6 concord en the

sexistiont support fereit.

CC SENT DIV.

DATE

526 00101818

1 Paly 1969

SECRET

19.80.408

50:14

---

## Page 69

4-00000

SECRET

1010.

faller (a)

irJutCT ACTION.

TYPE OF ACTION

LIENPTY

OTHER

X

APPROVAL

AMENOMENT

но.

RENERAL

• 19& 70

DIV1B1ON

Western Hemisphere Division

PIELO STATION

NexicO CitY

ВЯДИСИ

OEBA

One

CABE OFFICER

TERMINATION

ORGANIZATIONAL

FLEMENT

PUTEPING

3E04

Higs:

CONCURRENCES OF DIVISIONS

IYPED NAME (and aignoraro)

DATE

4 Apr11 69

_PLACE

9041 6954

C/MH/1

DATES

Miles 1/4/62

KIEMO

ATTACHER

VAS

I NO

C/WH/B&F

C/HH/SS

C/HH EI

HALEXO

C/WHD

George R. Thompso QuellL Hauu

Janes B. Noland 13o noch

le taler

Donald Ca Barclaudecance 21 APi au, 20/4

William V. Broe

1 2 MAY 1069

2 1 MAY DOS

Fl Staff

CONCURRENCES OF OTHER COMPOMENTS

xse%

¿TRESTRES

Pen desit

/S/. F. W. Hughes

DATES

MEMO

ATTACHED

VES

NO

IN

OUT

14.И

5 JUN 1969

5 JUN 1959

CI Stall

CCS/PRG

OPSER/P

/S/ Walter M. Pillsbury

1S/ Gerard Droller

ACTIONS

Furo3z

- SOUIRE

THIS PROJECT

APPROVAL OF

10 Jul 69

5 Jun 60

28 May 69

C/MPS/ BG

Sonitie

Wrangt

APPROYAL

PERIOD

AMT TMIS ACTION

0. JULY 1969 30 June 1970 |$ 38,970

IPPROVING AUTHORITY

SIGNATURE

A/DDP

Cal Wileye

12-s6 848:19

SECRET

FY

TOTAL ANUNT

19k70 $ 38,970

DATE

15 hug 61

131

---

## Page 70

SECRET

2: 4/ 1969

MEMORANDUM FOR: Deputy Diroctor for Plans

SUBJECT

: LIEMPTY Project Renewal (FY 1970)

1.

enowal 1g requested for the LIEMPTY Project fo

he period l July 1969 through 30 June 1970 (FY 1970) 1

the amount of $38,970.

Funds are available in WH Division.

- $45,000 was programmed for FY 1970.

2.

LIEMPTY is a project supporting Soviet operationg

of the Mexico City Station.

It provides for two baschouses,

a photo surveillance vehicle, and personnel for photographic

and visual surveillance of the Soviet Embassy.

Presontly,

two fixed surveillance points near the Embassy provide the

location from which the photographs are taken and observers

arè stationed.

One basehouso is adjacent to the rear

of the

play and work.

Embassy, where Soviet officials meet' from the front of the

other basehouse is across the street

Embassy and gives a diroct view of every person entering or

leaving.

There is also a mobile photographic unit fa VW

van) which is now used in support of all Moxico City Station

operations and in conjunction with the LIEMBRACE surveillance

team (used primarily against Soviet targets). Raymond H.

GERENDE, an

indigenous contract agent,

is the principal agent

of the operation and meets daily with the basehouse keepers

and subagents.

3.

LIEMPTY contributes significantly to the Station's

Soviet

operations program and is considered an essential

element of the Station's support apparatus.

During the

period l November 1967 through 31 December 1968, approxi-

mately 21,367 photographs were taken.

quest to SB Division for an evaluation of the project, ti

following comment was received:

since they furnish a steady flow of up-to-date identity

tae identithes

The photos are useful to the Station in confirming

SECRET

---

## Page 71

SECRET

mbassy, some of whom are t. S. citizens. During the past

year, several of these U.

S. citizens were identified witt

the help of the photos (which were passed to the FBIj.

and associates, especially Merican nationals,

This informa-

tion is useful

in target studies.

for example, the senior

TASS representative, a known AGB

officer, is a recruitment

target.

He is under intensire operational scrutiny for

leads developed from knowledge of his activities and contacts.

LIEMPTY support is an integral part of this current develop-

mental activity.

4. During the past year, one of the three basehouses

was closed, leaving two, and the agent attending it was

terminated.

This was done because the agent was becoming

less effoctive with age,

and because there was some over-

lap between the photos taken from this basehouse

of another.

The termination vas amicable,

hours

of

the personnel of the other basehouse were extended

slightly.

Another agent was also hired to help.

agent is of the same family as the rest of the personnel

occupying the basehouse,

and no additional security risks are

anticipated from this addition.

There have been no security or administrative prob-

The Station and GERENDS are constantly on the alert

for any sign that the Soviets are aware of the surveillance

activities:

While it is quite possible that the Soviets are

aware of the surveillance, so far indications are that they

are at least not fully aware, since no effort is made by

them to avoid being photographed, even when having meetings

with contacts in the rear of the

6. Approval is recommended of this valuable operational

support project.

williantee Broo

Western Hemisphere Division

SECRET

---

## Page 72

4-00000

UNCLASSiSTED

SUBECT, pOsttoned

FROMS

NTERHAL

USE ONLY

• ROUTING AND RECORD SHEET

• CÓM.. VENTIAL

LI-MPIY Projeët Reneval for FY 1968

DUTENSION

WH/1/Rascy Perkina

6954

на

sattar, room oumbor, and

DATE

OPFICER'S

INITZALS

ZZCEINEO| POTiMATOEO

aNte 13 Decenber 1967

COMNEN STN l a oct es ealuna to ah oro te oom ho)

wyh

sot

TO: (Otaoen des

baiteling)

3.

c/Ns/1

C/NH/BSF

i/66:d/201

C/w8/Support

50/0;0078

c/Na/Kế

2/i 4/ F1

WH/EXO

1/z

563.0o0l

z Zuet

& d:

18J0.

2 3 JAY

1968

C/VED

2 9 JAN 1968

WH/FI

A

NPS/BO/PI

WS/PI 3D .3/13

1 : 1aven

163

WE/1/Kancy Perkins

Y Ga Fanze Ra ablE.

Prozest

clendos".

Tue 2f uteartemmig

Xer

Alir

Linker

Aikr

aht oo TVA.

io tha bosé af brcincte Khuidelis

nentol el iahieles weild toa

en cin tad igs, shout täim

basis.

10.

1.

12.

13.

14.

JG ED SECRET

• CONFIDENTIAL

INTERNAL

USE OHLY

UNCLASSIFIED

---

## Page 73

14-00000

SECRET

PROJECT APPROVAL NOTIFICATION

Bric

I suasion

MOIRECT

AREA

ACTION

ME ANOJeCT

ANSHONANT

DIVISION

¡TERMIMATION

EXTENSION

APPROVINO AUTHURITY

• AIDE

PERIOD OF APPRO

•nou & Becaster 1968

- то 30 Гола 2969

CONDITIONS OF ASPROVAL

BRANCH

0E3R

CASE OFFICER

AUTHORIZATION

TOTAL AMOUNT APPROVED

$ 60,785

INANCIA

EXTEMSION

60511

1908

199

8935-2009

AMOUNT

828,205

73,580

SIGNATURE

MPS/BG

LOATE

!?:.

DISTRIJUTION

BINANCE

FOR 849 dEPORTEOUS

MPg/ 8G

SECRET

15)

---

## Page 74

14-01100

SEL.ET

les fn)

ORGANIZATIONAL

ELEMENT

C/WH/A

C/HALSS

C/WH/FI

WH/EXO

C/WHD

PROJECI ACTION

TYPE OF ACTION

NTO PROJECT

APPROVAL

AMTADMENT

но.

REMINAL

or 196

EXTANSION

CA

DIVISION

Western Hemisphere Diviston

FITLO STATION

Mexico City

AMANCH

OBSK

CASE OPFICER

Nancy Perkins

TERMINATION

3B 4403

TYPED NAME (aRd

Has

CONCURRENCES OF DIVISIONS

We 3. Kaufman illY (laufman

8t.7с

Elliett Ce Want

George R. Thompson nuL'

Thomas Polgar

William Ve Broe DeX

Vesto

LIENPTY

OTMER

Dec 67

9041

IN DATES

OUT

12/2?

32.r.

46%

27/1163

E9 1r: 129.8 0 100 1908

MEMO

ATTACHER

YES

NO

5B/O/WH

FI Staff

CI Staff

CONCURRENCES OF OTHER COMPONENTS

Jonathan S lanke

/s/Robert E. Anderson

/s/Frank W. Hughes

DATES

IN

3.12,68

OUT

3 Janbed

8 Kay 68

26 Feb 68

MEMO

ATTACHED

YES

NO

C/MPS/BO

FROM

1 Des 67

A'PROVINÓ AUTHONITY

A/DDP

FORM

18-68 848 1019164

S.3n)stee,

4322, 6P

APPROVAL

PERIOD

AMT THIS ACTION

FY

TOTAL AMOUNT

130 June 69

1908 ≥ 26.205

$ 69,725

1909 $ 43,320

SIGHATURE

dorl Weet.

SECRET

---

## Page 75

PROUTET

CASE OFFICER

Nancy Porkins

01v18100

ACTION

APPROVAL

CITENSION

TERMIMATION

ROUTINE OFFICE COMMENTS

SECRET

STAFF REVIEW OF FI/CI PROJECT

4 M08

S42.729

EXTEMSION

6998

STATION

TARGET AREA

Maxica City

¡lexica

AFFROVAL

LEVEL

OIVISION OR STAFF

OOP

OCI

RETURN TOI

XPS/BG/FI-CI

Projects

419 m00l

3 B 4403

FORUARDED

DEADLINE

X c1/Op8

REVIENIME COMPONENTS

Ccs

17/30

2123

OTHER

COMMEAT TOR INTERNAL STARE UBE (NOP lO dO POPDATA tO PRO DIVIAION)

- -

COMMENTS AND RECONMENDATIONS (TO dO PaRDArÓ lO ENO DIViSION)

• :

The CI Staff concurs in the renewal of this extremely valuable

project.

The Staff strongly urges that the Station continue to be

constantly alert for any Sov. interest in the project's

agents and

Installations and in particular any Sov, investigation or activities

against same--also, Station contingency plans should be formulated

co cope with such sov. interest or activities.

GENE DIVI

DATE

1089 526 00106

REVIKWING OFFICER

SECRET

118.80.40)

---

## Page 76

SECRET

MPS/ Ba/FI

8 May 68

PROJECT BRIEFING

PROJECT : LIMPTY

Wll - Mexico

ACTION

: ADD/P approval of renewal (19 mos.)

1 Dec 67 - 30 Jun 69°

PURPOSE:

An operational support project providing three basehouses and

a mobile surveillance unit to monitor primarily the Soviet

Embassy, 1ts personnel and 1ts visltors, by physical and photo-

graphic surveillance.

BACKGROUND: The project covers three propertied near the Soviet Embaasy

(two in front of the Embassy's sole entrance and one bchind the

garden) from which visual and photographic surveillance is carried

Some of the project porsonnel are used at times for miscellaneous

support tasks such as servicine postal boxes and for counter-

surveillance and other protective services.

PROGRESS:

During the past year the project provided nearly all of the opera-

tional photographs and physical surveillance reports used in the

Station's operations against the Soviet Enbassy and its personnel.

SB Division says,

"This rather unique operation has unquestionubly

made a major contribution to the increasingly effective Soviet

Operations program of the Mexico Station."

FUNDS

The project produces primarily operational data and counterintelli-

It provides leads, evidence of which soviet

officers have been in the Embassy and which ones have been away,

who has used which car, who has been talking to whom or going out

of the building with whem.

(One photograph from this project was

used in the Warren Commission Report.)

: $69,725 (19 mos.) (Programned FY 69 $46,000)

EX 68 (7 mos.)

Salaries (2) and bonuses

Vehicle maintenance

Rent and utilities

Equipment

Operational expenses

$19,475

1, b0g

300

600

$26,205

EX 62

$32,020

3,000

500

43,5г

SE RET

---

## Page 77

4-00000

SECRET

PREVIOUS

APPROVALS:

1 Dec 66 - 30 Nov 67

1 Dec 65

30 Nov 66

I Dec

64

30 Nov 65

i Dec 63 - 30 Nov 64

1 Dee 62 - 30 Nov 63

• 1 De: 58 - 30 Nov 59

SIAFT

RECOMMENDATIONS:

FI and CI Staffs concur.

SECRET,

$45,000

41,500

45,300

49,700

49,900

75,380

---

## Page 78

14-00000

•

8"7*358

MEMORANDUM FOR: Assistant Deputy Director for Plans

THROUGH:

SUBJECT:

MPS/ BG

Project LIEMPTY

1.

WH Division requests renewal of LIENPTY for the

19-month period l December 1967 through 30 June 1969 in

the amount of $69,725:

While this represents a slight

reduction on a pro rata basis from the $45,000 for which

LIEMPTY was approved for the 12-month period starting

1 Decomber 1966,

it reflects a proportionately modest

increase in cost for the 19-month renewal perlod over the

estimated

total disbursement of $40,130 for the past

project year.

This will provide for small salary increases

to meet the rising cost of living for certain of

the agents

Involved in the project who have not received raises in

some time as well as for slightly higher rental fees for

the various basehouses.

The project, now in its tenth

year, is designed primarily to provide for the collection

Cityperational Information on the Soviet Embassy In Mexico

including the identification and muvenchts of its

personnel and visitors.

To this end, LIENPTY provides

for the

maintenance and exploitation of three basehouses

for fixed visual and

photographic surveillance of the

Soviet Embassy and a

mobile basehouse in the form of n.

panel truck used for mobile photography against the Polish

Embassy, leaders and mecting sites

of local communist

parties,

and other targets

of opportunity.

An important

corollary

objective of LIEMPTY is

operational support in

the form

of countersurveillance for Agency personnel and

operations, including those of other bases and

stations

requested include $43,520 for the period 1

December 1967 through 30 November 1968 and an additional

$26,205 to cover the period 1 December 1968 through 30

June

The latter funds are asked for in a supple-

nental request to put the project on a fiscal year basis.

agents

* long-term contract agent and eight other support

are involved in the manavement and operation of the

---

## Page 79

14-00000

LIEMPTY facilities and in surveillance activities directed

at the primary Soviet target.

Some of these arents are

used also in

room photographic processing, letter

drop, and, on occasion, moving surveillance activities.

This project is only part of the complex-of

Mexico City Station

from a

instruments for meeting requirements,

number of U.S. agencies, including the FBl.

is clearly an effective, well-managed support operation

serving important needs.

1.

No major or significant changes in LIEMPTY

persónnel or operational techniques have been introduced

nor have there been

affecting. the security of the project or its personnel

since the previous project renewal period.

lateral operational support effort, LlEMPTY cont inues to

be a most useful station asset supporting a number of

station activities.

as discussed above, the project is considered to be holding

the line on cost and personnel.

The objectives of project LIÈMPTY are in direct

support of priority A objectives 1, 2, and 4 of the current

Operating Directive for Mexico. It is considered by SB

Division to have made significant contributions to the

Station's well developed, high priority Sovict Operations

During the past year the various LIEMPTY base-

installations produced valuable information in the

of photographic coverage and physical survelllance

reports on the daily

movements, personal associations and

targets of special interest.

In numerous instances this coverage confirmed the specific

intelligence service

connections of Soviet officers

Often the identities of Mexicans and nationals of

countries in contact with the Soviets were estab-

The mobile panel truck unit was exploited regu-

larly to provide information on not only the Soviets but

the Cuban target as well as local Communist Party

• Glenn Fields

Chief

Foreign

Intelligence

Attachment

Project

...!.

---

## Page 80

LIENprY PROJECT RENEWALS

THROUGH FY 1968

(RENEWALS FOR FY 1969 AND

FY 1970 ARE IN PROJECT

RENEWAL FILE)

---

## Page 81

7277

PROJECT BRIEFING

MPS/ BG/FI

11 Jan 67

PROJECT: LIEMPTY

WH - Mexico Gity

ACTION : ADD/P approval of renewal

1 Dec 66 - 30 Nov 67

PURPOSE: Provides stationary surveillance against the Soviet Embassy

ánd a mobile photographic baschouse which is used primarily

against the Polish Embassy and local Communist party leaders.

• PROGRESS: Three basehouses (LIMITED, LILYRIC and LICALLA) pro-

vide coverage of both the front and rear of the Soviet Embassy.

Throughout the past renewal period each operational component

contributed actively and concretely to the fulfillment of the

operational tasks levied on the Station. In the first nine-month

period approximately 17,000 individual frames of operational

photographs were provided from the fixed basehouses. These

served to confirm the identities of Embassy personnel and

their visitors and provided detailed reporting on the movement

and habit patterns of selected targets of special interest. The

mobile unit (LIENTRAP) provided over 1, 000 individual photo-

graphs. Of particular value were photographs of local and

exile Communist leaders. Raymond H. GERENDE (p) continued

in the role as principal agent for Project LIEMPTY. His overall

operational assignment involved at least 12 clandestine meetings

per week, in addition to his meetings with the LIEMPTY project

case officer.

PROBLEMS: In mid 1966 LICOWL/l, who owns a small store near the

Soviet Embassy, reported that a Soviet official had approached

him and asked him to inform on his neighbors. Reportedly the

Soviet named LIEMPTY/6 of the LIMITED basehouse by name

and also asked about the tenants of the building housing LILYRIC.

However, in view of LICOW L's previous history of lying, it is

difficult to assess exactly what the Soviets requested and just

what LICOWL/1 may have told them. The Station is still looking

into this development.

---

## Page 82

citin

FUNDS : $45,000

$29,020 in FY 67

Programmed for $45, 000 FY 67

Salariesi

GERINDE

Others (8)

Vehicle maintenance (2)

Rent and utilities

Equipmeat maintenance and replacement

Miscellazeous operational expenses

PREVIOUS

APPROVALS:

1 Dec 65 - 30 Nov 66

1 Dec 67 - 30 Nor 65

1 Dec 63 - 30 Nov 64

1 Dec 62 - 30 Nov 63--

1 Dec 61 - 30 Nov 62

i Dec 58 - 30 Nov 59

$15,980 in FY 68

$ 7,000

23,900

5, 000

500

1, 000

$41,500

45, 300

49,700

49,900

49, 500

95,380

STAFF

COMMENTS: FI and CI Staffs concur in renewal.

CI STAFF: Strongly urges the Station to continue its close

monitoring of Sovie: interest in the installation buildings and

attenzats to obtain information on sensitive project personali-

ties. The Station should devise necessary contingency pians

of action to eliminate any security hazards if it is determined

that the Soviets are intensifying such efforts and could be

getting "too close" to the project installations, personalities

and activities.

---

## Page 83

14-00000

SECRET

® JAN 196%

MaNOR DU FOR:

'MOROUGH:

SUBJECI:

Assistant Deputy Dircetor for Pling

NI'S/BO

ProJect LIENITY

1.

This action sooks rencwal of larject LIdatt coveri

Molen Cily Siation's stutlonay sucroillonee bacerouces alued

against the Suriet Babacsy.

the notlity with coo, j4g, 000 for

the period 1 Deconber J56a to 30 doveabe: 150% Mvproval 1s

recurrended.

Froject LIbriTy has bech in being for air jours.

present it supports three stutionny basehouss neut the Soviet

Enbusey mu daubile photogrophie busclouse.

obtain photograghle coverage and logs of Soviet moreuents and

visitors to the Soviet Envassy.

The inchile bauchouse 18 used

also to cover aceting altes of

the local communict pritles und

turgets ot uprortunity.

i principul agent und eight agcats are used in the

LIDATY sotivity.

The agents are virivusiy enployed un busehouse

keepers, plioto lab technisland and surveillance ofecutors.

4. security hag been cencially coid ulthough une incldent

cecurred in aid 16o which my have some intact on te future

security of thu operation.

An approact: has nude to an ugent of

the Stition, io owns a smil store near the soviet Embassy, to

report on his neishbors nong vian are soud of the LIMiTY aga.to.

ne, LIENTY-o, wis wautioned by name.

The Statton is ratching

his develosent nicfully.

to The LamilY sotivity proved its worth during the past

reur when check lia mude on confiscting stortes told by tho

Stution ajents.

The LIbIX surveillice

reports "roved that 2i2

it the agents mus lying cbout lis contrats with the soviets.

It-lY is sall canaged and continues to serve an laportant Noxios

Ciüy Station beed.

inting Gules

Foreign Intelliger.ca

SECRET

---

## Page 84

SECRET

Paaro 511199851

ORGANIZAT IONAL

ELEMENT

C/WH/1

C/WH/B&F

C/WH/SS

CLIIVEL

HH/EXQ

C/WHD

PROJECT ACTION

LIENPTY

appassas

но.

101281

00:0-8-68

EXTENSION

^''"estern Hemisphere Division

EINLO STATION

Mexico City

pre a min

One

orsa

1E1.10194

Ge

Ristos-Videla

Rista 1ò.

EUILOINE

332

Ames

CONCURRENCES OF DIVISIONS

•TYPEO NAME COOd

DATE

18 Nov: ' 66

*rO

BLACK -

3654

-. DATE..

W. J. Kaufman

Robert Carter Guits. Guth

George R. Thompson

Thomas Polgar

vistin, t'syer

Donald a Marenue des

DO PET USE

THIS SPACE

CONCURRENCES OF OTHER COMPONENTS

FI Staff

CI Staff

-s/Robert E. Andersen

-s/Frant 11. Hughes

1125/64

6/0- 6k

1312/66

12/10/64

DATE

0.2an67

li Die 66

cxy

10.

YES

MEM' ATTACHED

DATE

é Jan 67

1 December 66°

AFFRÓNDÃO AUTHORITY

30 Nov 67

A/DDP

N 848 0190

112 TM67

APPROYAL

INE EPIS ACTION

45 . 000.00

15 813

SECRET

15,980

191

---

## Page 85

14-00000

".

SECRET,

1O DECIDES

MEMORANDUM FOR: Deputy Director for Plans

SUBJECT

: LIEMPTY Project Renewal

It is requested that the LIEMPTY Project be

renewed for the period 1 December 1966 through 30

November 1967 for a total of $15,000: $29,020 for

FY 1967 and $15,980 for FY 1968.

The Project 1g in-

• cluded in

the FY 1967 Operational Program for $45,000.

Funds are available within WH Division.

2. LIEMPTY covers stationary surveillance base-

houses

targeted against the Soviet Embassy.

These

basehouses provide photographic coverage and logs. To

of the baselouses (LIMITED and LILYRIC) cover the

activity in the front of the Embassy, and LICALLA provides

coverage of the back courtyard area.

The LIEMPTY project

also covers a mobile photographic baschouse in the form

of a panel truck which is used against the Polish ambassy

where we have no permanent surveillance basehouse, and

against other targets of opportunity.

3. The value of Soviet Embassy photographic cover

age during the past year

was provch when the

maintained by LILYRIC were used to double check on an

operation involving LIRUSTIC-l and LICOWL-l who had told

conflicting stories of certain events concerning the

activity of some soviets.

Through the surveillance

reports of the LIEMPTY Project against the Soviet Embassy,

it was proven without & doubt that Licowl-l who had just

taken a polygraph without apparent deception) was lying

about his contacts with the Soviets.

The LIENTRAP mobile photographic basehouse was

targeted against leadors and meeting sites of the local

Communist parties as well as other targets of opportunity,

particularly exile Communist leaders now residing in

LIENTRAP provided up-dated identification

Éclades tor grieral:

SECRET LEM

.

---

## Page 86

14-00000

SECRET

-2-

photographs of Communist officers which are of value

to both the JNTIGER program and the Station'g

•ecruitment/penetration program.

The LIENTRAP

ersonnel also regularly service twenty-one postal

accommodation addresses used by the Mexico City

Station.

One development which may affect the security

of the LIEMPTY baschouses of LIMITED and LILYRIC

occurred in mid 1966 when LICOWL-l (who owns a small

store near the Soviet Embassy) reported that & Soviet

official, AEQUALITY-1, had approached him and

requested him to inform on his

neighbors.

by name and also indicated all the tenants (unnamed)

of the new building which now houses LILYRIC.

The

Soviet pinpointed the building by saying the one being

built by a person who fit perfectly the description of

LIMOUSINE. LICONL-l did not indicate that the Soviet

reflected any interest in LIMOUSINE.

The occupants of

the LILYRIC basehouse were not mentioned. LICOWL-1

indicated to his Station contact that the only person

he really suspected in the neighborhood was LIEMPTY-6

(of LIMITED) who doesn't go to work, is always typing,

lives comfortably, and owns a car.

He claims to have

heard it rumored that LIEMPTY-6 was working for the

Americans.

(Since LIMITED is equipped with a radio

and tips off the Station's surveillance team when it

•is used against Soviet targets, Headquarters has

already assumed that the Soviets have identified this

baschouse.)

LICONL-1 also listed several persons

named by the Soviet who had no connection whatsoever

with CIA.

The Station instructed LICOWL-I not to become

an informant on his neighbors.

According to LICOWL-1,

he therefore told AEQUALITY-1 he did not have time to

collect the information the Soviet wanted.

in view of the lies LICOWL-l has been caught in, it

is difficult to assess exactly what the Soviets asked

of LICOWL-l and just what LICOWL-l may have told the

Soviets..

The Station is still looking into this develop-

ment.

7.

WHD

recommends renewal of this Project.

V. Broe

Chief,

Western Hemisphere Division

SECRET,

---

## Page 87

PREVIOUS

PROJECT ACTION

---

## Page 88

14-00000

..

SECRET

DDP/PG/FI

9 Feb 66

PROJECT BRIEFING

PROJECT: LIEMPTY

WH - Mexico

ACTION

ADD/P approval of renewal

1 Dec 65 - 30 Nov 66

PURPOSE:

To provide support for mobile and stationary photographic

surveillance of the Soviet Embassy and a dispatching

for a physical surveillance team.

PROGRESS:

FUNDS

:

Assets included under the project include three base-

houses which provide front and rear views of the Sovlet

and a panel truck cqulpped for soot photo

coverage.

Raymond H. GERENDE (p), principal agent,

ncets the baschouse keepers regularly,

maintains regular

contact with the mobile photo unit and with the develop-

ing and processing base. He also performs many other

support functions.

he photographs from all these operations have been o1

alue to the Statior

operational planning, for

Identification by surveillance teams, for mug books, anc

•or Headquarters permanent files.

The Station belleves

operation 13 essential

to the fulfillment of

overall operational program levied on the Station by

$41,500

$25,520 In PY 66

(Programmed for $50,000 in FY 66)

Salaries

GERENDE

Basehouse keepers (3)

• Mobile unit operators (2)

Lab personnel (2)

cut-out

Vehicle maintenance (2)

Rent and •utllities

Equipment

maintenance

Miscelianeous ops expenses

$15,930 1n FY 67

$ 7,000

10,100

7,000

3, 200

., 200

2,000

7,000

1,000

1,000

SEGRET

---

## Page 89

PREVIOUS

APPROVALS :

STAPP

COMMENTS :

SECRET

Dec

Dec

Dec

62

3

3

30

3

Nov

Nov

Nov

Nov

60 -

1 Dec 58 - 30 Nov 59

FI

and CI Staffs concur in renewal.

895, 300

$9,1

49,900

49,500

53,000

95,380

SECRET

---

## Page 90

14-00000

SECRET

(hee Pilled in)

CRGANIZATIONAL

ELEMENT

11L/6&F

MI/SS

C/WH/FI

NULEXO

C/NHD

SI Staff

en staff

PROJECT ACTION

TYPE CF ACTION

xX/

IEN PROJECT

DIVISION

CA

Western Hemisphere

AMENOMEHT

то.

RENERAL

er 1966

EXTENSION

FIELO ETATION

Mexico City

BRANCH

DESK

Mexico

CASE OFFICER!

Bustos-Videla

TERMINATION

Hdgs

CONCURRENCIES OF DIVISION

TYPEO NIVE (and alenacuro)

DATE

He Je Kaufman

Na Es Braoks

Thomas Pelgar

Donald Barelius

William V. Broe

12/3

homor Polen 16/12

Kustis

Ковив

28/3/1

30/1m/Gr

CONCURRENCIES OF OTHER COMPONENTS

DATE

-s/Robert E. Andersen

-s/Frank &. Hughes

4. Fab 66

7. Jan 66

CY CRIPTONYM

LIENPTY

OTHER

4506

DO NUT USE

THIS SPACE

COPY

NO.

MEMO ATTACHEO

YES NO

DATE

4 Feb 66

.. 9

C/DOP/FG

Son, Xtue

TAUN

1 Dec 1965

130 Nov 1866

$ 42.500.00

APPROVINE AUTHORIT ASS 1S or Plans

Deputy Director

TARava

FOSS

€-65

848 40181043

SECRET

$ 15.980.00

11 FEB 1968

(5)

---

## Page 91

P. 4 FEB 1965

MENORANDUM FOR: Assistant Deputy Director for Plans

THROUGH:

DDP/PO

Project LESHIPTY Seceval

1.

FI Staff recoumends approval of the renewal of Project

LISMPTY.

This project, costed at sal, 500., supports the following

Mexico City assets: a panel truck used for mobile photography,

three base houses for fixed photographic surveillance, a contract

agent manager and eight support dents. One of the base homes is

used as a control point to dispatch s surveillance team. (The

latter is not a part of the project, however.)

2. The LIEMPTY target is the Soviet Embassy and Soviet

activities in Mexico City.

LISVeTY is part of the complex of

station instruments by means or bich requirements from a variety

of U.S. agencies are met. One of the sites provided pictures

later used in the Warren Conission feport, and the publication

of the

report created a security hazard.

The Station moved the

site and it 1s now back in operation.

The possibility of Soviet intercept of radio commo to

the surveillance team has been carerully weighed recently by SR,

the desk, 0/C and ISD. The decision to accept the risi appearo

to have been taken with due deliberation.

* This is clearly an ertective, well-managed operatior

erving an important need. He recottend renewal without hesitation.

Foreign Intelligence

Attachment

Project

i---

---

## Page 92

14-00000

SECRET

then:

00 DEC 1965

MENORANDUM FOR: Deputy Director for Plans

SUBJECT

: Project LIEMPTY Renewal Request

Rencwal is requested for the LIEMPTY Project foi

he period 1 December 1965 through 30 November 1966 for

This Project

has been programmed in FY 1966 for $50,000.

Project Renowal was approved at $45,300. Funds are

available within Wll Division.

The security of this Project appears to be good.

The LIENTRAP photo truck was repainted a different color

in January 1965 to preserve the security of this vehicle

which operates extensively in the same general arcas.

have been no apparent ramifications from the publication

Photograph in the Warren Conmission Report

in September 1964.

3.

LIENTRAP is one of two mobile photo surveillance

units at the Station, both of which are used

extensively

because of the many requirements for spot photo coverage

of diplomatic installations, agent mectings, and current

identification photos of targets among others.

'4. Although there are three stationary photo

baschouses under this Project all targeted against the

Soviet Imbassy, there is very little duplication of

effort, and the coverage of this Embassy would be weakened

through the termination of any of them.

the rear of the Embassy (garden and parking lot) and is

in a unique position to observe informal meetings and

activity there.

In May 1965 a thorough assessment was

nade of this basehouse to determine whother an audio

installation

could be based here, directed against these

garden conversations.

It was determined that due to the

this was not

practical.

reactoped which

however, and if any new equipment is

operation more feasible

be tested. LIMITED and LILYRIC which both cover

the front entrance, provide coverage during different

parts of the day,

and LIMITED also serves as a fixed radio

SECRET

6R0UP 1.

saragradias and

declasalticatios

---

## Page 93

dispatching base for the LIENBRACE surveillance team.

to The photors heer all these a prations, co

identification by surveillance teams, for mus hoolis, which

are often used by surrcillance teams

and singleton agents

in identifying Soviets, and for lleadquarter's perisnent

R'ith reference to the FI Staff comment made last

year at the time of the Project reneral that the radio dis

patching from the LiMITED installation might have aade this

sase a target for the Mis, the problem was discussed in depti

with the. Office of Comrunications,

TSD, and SA Divisions.

The Statioi: has been alert to the

Soviet's monitoring capa-

bility and they have developed a signaling systes and inter

car communications system that will leave the LiEsrICE

surveillance cars on the air for a minimum of tine, and

with limited open conversation.

The result of Headouarters

the. Station's rescarch on

this problem resulted in the

a surveillance team

automobiles, radios must be used if there is to ba

surveillance, and regardless of thai presently availa

type of scrarbling or coding is used, radio is

to monitoring by the opposition.

It was therefore concluded

that if the Station is

to use thie LIENBPACE tear against

nembers of the Soviet installation, LINITED must continue to

be used as the radio dispatching center and the rist factor

accepted until sone new, more secure yet efficient

commo system is devised.

The reporting en the administration of this Froject

is handled through regular quarterl! progress reperts.

appropriate soviet,

year there mere no positive intel frence reports for this

Both

SR and Ill Divisions recommend reneral of this

project.

Chief

Broe

lestern Hemisphere Dirision

.?

---

## Page 94

14-00000

SECRET

19p1a5ee

i

MEMORANDUM FOR:

chief of Operations, DD/P

SUBJECT

: Project LIEMPTY (Renewal)

WH - Mexico C1ty

The attached project, originating in WH Division,

is presented for renewall 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,

those targetted at Soviet personnel and in-

2.

Authority is requested to obligate $53,000 from

the DD/P-WHI Division budget:

$31,900 in

fiscal year 1961,

and $21,100 in

subject to the avallabil-

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-

repair and maintenance of photographic equip-

ment; and

placement, $5,500 basehouse rental, utilities, and mainte-

nance.

3.

supported by a cover-

ing memorandum of the Division,

The field's renewal request' forth accomplishments

of 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 1900,

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 dally 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

---

## Page 95

14-00000

SEGRET

of opportunity.

This basehouse also provides photographic

concentrated on visitors.

(b LILYRIC which pro-

vides clandestine photographs particularly of visitors-to,

as well as employees of, the LIMERICK Installation, prepares

weekly reports on LIMERICK emplojees and their wives,

reports on license numbers of sil cars visiting the instal-

(e) LICALIA, 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 nell as personel 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

to follow-up and exploit operational

on target personnel and installations, to case vailous in-

to acquire property,

has managed the surveillance teen being transferred to

in the interim rollowing the resignation of CLACKETT.

notes that activitles at the LICALLA basehouse

were suspended in Septerber 1960 as

the result of the ar-

a knowledgeable TSD technician in another area and

It 1s not known precisely when it will be possible to re-

these operations.

The Station belleves that the

GERENDE segment 1s now operating lnder optimun 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.

ommending renewal.

that the transfer of the unilateral surveillance team to

LITEMPO will not affect its independent status, and remarks

that the current project revier presents a clearer picture

of the usefulness of the several segments than the previous

SECRET

---

## Page 96

14-00000

SECRET

I recommend renewal of Project LIEMptY as pre-

sented.

• .

Approved:

COP-DD/P

3 FEB 1961

Date

Attachment:

Project Outline LIEMPTY

FI Memorandum

Staff Coordination:

For FI Start -3/R. Bryant

For CI Staff -3/R. Brown

For CCG

-B/F. Youngblood

SEBRET

---

## Page 97

25 dad 1961

MEMORANDUM FOR: DOP, CUPS

THROUGH:

SUBJECT:

Pricect LIMPTY

FI Staff recomeds renewal, with the assurance of the

desk that the transter of the unflateral surveillance tear to

LITEMPO will not disit Its independent status. Thle review

presents a clearer picture of the usefulness of the several

segments than the prayious one.

Chief

Foreign Intelligence

Attachment

Project

simi

---

## Page 98

SECRET

8

MENORANDUM FON: Chief so Cerations, Do/s

SUBJECT

: Project arsary (Renewal)

Wil - fierico

The attached preet, origlnatinz in wii division, 1s

presented jor

rcheval for

tie perlod 1 December 1059 through.

31 lovember 1900.- The arricot arovides for phycical and photo-

¿raphic surveillance opcrations in support and

oter Mexleo

operations,

caploitation of

particularly thore targetted at

Soviet personnel and Installationg.

Authority is requested to obligate $54,910 from the

20/l-Wi Divialon

operating cudget:

149,135 lor flocal yeor

1060 end 170,427 for Ciscal 1101

sundeet to the availabllity

cumo coolide collato comorsation for five

contract agents (three ed mom serve as principal arents for

segments ai the project?, and stateen support agents; 43,500

for vehicle maintenance sud commercial carrier travel; 17,500

for operational equipaero: 1,000 for maintenance of threc

saichouses; da, dog for accelonal safenoude, post office box,

vohtole rental; 81,0o exchange commoditles; 52,000 key

broken contracts,

cro.; and pe

intortation, documents, predat of lilace, at tic purchase ar

The attached ranerol requeit, propuled in the divisio

210

supported ly a piroes revier arcoarod lu the ileld, revlei.

ine actlvitlau of the prorer durine the pact gear and

3 detailed breakdown di

tie tunds requected.

oncruros in three settine::

in) conteset arens Oliver &.

Indecordone ascet the 1s used to collon-up and

explolt occracional Interation on forget personnel and incialla-

tons, to case vorious tiraliatione of interest, acquire pro-

cipal arent (u) a photograto

surveillance teon, under pri!-

arent

Raymond k. 0213.23,

utl-reins three nouses

ments and one photo trira: and (e)

under principal agent jir.a.

trained

neivers

diachurt, conatatine of threa

chyolcal surveillance tea

at the present

The attached renewal

request

reviets

thn setiritzes and acconoliconents or che ra-

¿CCÜ

in terrs

of these three seguento and in relation to pro-

sect obrectives.

scarrain's contribution to the collection

SECRET

---

## Page 99

SECRET

trained ClicKiTt in radia controlled mobile aurveillance.

SCArLING also has rendero:

opcrution having gained entr:

no the target mider a rauri-

cated cover. He has aire coach and prepared reports on the

LIlibut target in preparatto or future coeratione and per-

torace investigatione of curious other abation targets oi

coportunty, ne Inventicated may leads from other audio-

survelllance operations chobiles the station to maintain

on various serter contacts and resulting in a

rccruitment attenot witch, airli unanecesarul, to belleved

to Indente future potentiol sions this dino.

usco to dovelon rato procedures for the nobile

rent vorime preparates in support of other

Station operadiono.

cernent, Halke three base

for photograghy, predeace monards of 10,000 pioto-

the case has recentle begun taling

sovict mramil in the course oi conver.

which have been termriet

to Flo for gosalble coplaiin-

tion ly l1p rcadin. analyci:.

Dals sogment side eperates che

survoillance vestries.

moblle photography sur-

vallianee truel has boon use? suring the profact

coverage of

variou: Station partets waich do not varrant the

establlahment of permanons tiesegrapile. bares.

GaNaNDs has

also served to rent pose octire bores, hotel roons, etc.,

cupport of other station oberacions.

During the past project

year CLACK&T!,

vino returned to talled In carly April 1959

after Headquartere trainine,

spent the followine the months

boing trained by sonNacIld in socile surveillance techniques.

He thon undertool training or a four member

judged ready

for overations! use toward the end of the proicet

Two additional contract agents, Wilna d. rICADAbled and

Loulce J. InCRiTO, performed translation and support functions.

" Appropriate stair emponents concur in recommending

renewal.

1n difficult to

ilowever, CI stair canarks that the value of the

protect should

be Incroased when the ciickett survell-

lance team enters inco acrive operatior..

vi stotr sug-

sests that the Station

to queried as to the prctext or

circumstances under third ScarruING Prechenoly visits

Paradia de Foreno,

the occupant of the property

to tho soviet inctallation.

SECHET

---

## Page 100

14-00000

SECRET

(u) Pi/opo notes that while the proicet review pre-

sento a cicer picture of tie alma and objectives of the

various segrents, it does not provide, except in the

case of centrillis, detailed indication of the value or

usefulness of the other scgment., particularly the photo-

clapnic activity.

Fi/ups requests that the station pro-

vide such an appraisal during the firot quarter of 1960.

FI/OPs recomendo strongly that tre photo covcrage be

reviewed frun the stanopolut of value and usefulnesc "itn

a view to determining wnother the LIlYRIC actlvity could

not be safely elsirinated and the siditional photographic

coverage conducted on a more selective bachelors notes

materially aftecting overall uscrulness.

that, in bus absence of further proof of usefulness, the

color photography and movine pictures appear to be

unnecescar!

lusury.

of the Circturi cecent and rogucats that the next project

action

include grangles of the tean's progrcas.

with

attent.on

I recomend roneral of Projock, LICKPTY as

presented

tee abafi comments in parograph i above.

Chief

isreign Intelligence

Approved:

Attachment:

Project

Outline LISATI

Date

itaff Coordination:

65-3/5 Front

Erown

For C/CeD

-s/e. youngblood

SECRET

---

## Page 101

4.00000

SLURST

9 December 1959

*---

MEMORANDUM FOR: FI - Projects Branch

SUBJECT

3 Purchase of One Automobile and Increase of

LTEMPTY TVA by On

1. According to the Projact Renewal Request for LIMPT)

from the Moxico City Station, they plan to Inorease the LIEMPTY

surveillance team during the coming yoar by two agents.

mad too autoby of an enlargod toa, they vili require one

J.C. King

C/WHD

Creat

---

## Page 102

4-00000

3.

3.

c.

118

(8)

13)

PROJECT

LISMPTY

TYPE OF ACTION (ChaCE ono)

A. MEN TYA

•. AMIMOMENT OF EXISTIMO TUA

Trpe

a. Iscoan 2 oT 4, door used passenger

American or foreign

STATION MACOM

OTHER (LiAR BOlON)"

SECRET

(anen pillad (r)

CIA INTERNAL USE ONLY

SUPPORT ANNEX - TABLE OF VEHICULAR ALLOWANCE

2. SENIOR STAIT

AREA

A. DIVISION

D.

BRANCH

c.

DESK

REQUESTED ACTION

TOTAL

ON MAMO

PRESEAT

TORT TVA

WIR

III

MEXICO

TOTAL

PROPOSIO TVA

Panel truck

188

0.

TOTALS

REVILNED BY

%.

SIGNATURE LOGISTICS OFFICER

DIVISION DATE

JAMES S. BURWELL

WH/LOG 11 Dec, 1959

James S. Busell

APPROVED

ODP

Bi tumor

ORA

I NOV 5: 1116 TEST

9.

DATE

12/160

SECRET

CIA INTERNAL USE ONLY

5

APPROVAL REQUESTED BY

NA/SUPPORT

|11 Dec 1959

_AUTHORIZED

BY DURECTION OF ODIS

DATE

140-301

---

## Page 103

SECRET

MORUDE!. FUR:. Chief, iT

SUBJSCT

: Project LINIPTY Amendment

MADIUARTERLS CASE DETICUR:

007:

itt.:

2555

Date: ™

23 June 1959

1.

It is requested that aproval ba granted to amend Raymond H. GSHUNDS' s

contract to provide hin with a termination settlement of one month's salary for

each full veer that he works for KUBARK and to raise his salary effective July

1959 froz $i, 030 to 44, 560.00 per year. His last salary increase was granted on

1 Senterber 195%.

the boginning dite for the computation of UNiSiDy's terination benefits.

Station believes that this benefit will provide GRiNDS with the necessary

Incentive to nake KUSARK a career and at the same tine will cive the Station an

additional element of control.

2.

is pointed out in the ImPlY Project approval, GRiNDE, an indigenous

agent,

is one of the Station's most valuablo assets.

Fe has a responsible full

tine job as the WaPTY Princioal Agent wis handles the LITED, LiLIC and

LICAL: base hcuses,

the almittle operation, the outside photographic procossing

and translation service and all the agenta participating in these activities.

He performs his duties in a conscientious and professinal manner and his

already excellent abilities are showing continued inprovement.

3.

Money bas already allocated in tha LIMPTY Project approval for the

salary increase.

With the effective daln of 13 larch 1955, for the temination

clause, tiRes will already have accrued i1,520 (his salary is 14,500 per year)

if he should resign today.

The LIMPlY Frojact, as apuroved, has sufficient

funds to cover this cost if it is necessary to obligate this amount during the

present Project fear. Therefore, no ailtional funds are requested.

Attaciments:

Folder with rast approval

•relore nith true nam

Concur:

Lou and Wille

Ritan fi

FI

Date:

For C/JI/OPS

For CI Staff

-3/F.. Brown

16/502/59

SSCRET

---

## Page 104

14-60000

SEGRET

27 March 1959

MEMORANDS FIR: Chief uf Forelgn Intelligence

SUBJECT

: Project LIMPTY (Amendrent)

WH - Mexico üity

1. Tha sttached project, originsting in the il Division, provides the

services of a surveillance activity to support Mexico City sporations and

is approved for the period 1 Decamber 1958 through 30 November 1959.

It Is

presented for your approval of unendment to include the addition of a con-

tract agent, Loulse J. MACRIO, to furnish adrinistrative support, and also

to formalize a spocial comnitrent rade to one of the tuo principal agents,

Oliver G. SCANTLING. 1 contract prepared in the Field und signed by the

agent permits the payment of one yearly salary to him or his assigned heirs

in event of loss of life or total disability if incurrud in the performince

of duty. This bas not previously been inciudud in tha projact.

The LISPrY project hes authorization for the expenditure of

$95,380.

No additional funds are required for the amendment.

Sufficient

funds remin in the project to absorb the salary expenses for MACRINO and

funds to cover the extra year's gglam for SCaNILINi will not be requested

until such time as they are needed.

Memorands prepared in the in Division supporting the request for

amendment are attached, sunnarizing

the important fautors involved.

These

detail SCANTLING's performance and provide a resume of MalINOls past activ-

ities in behalf of the Agency.

4. Staff Components have concwrad in amendment to Project LIUMPTY.

5. I recommend approval of amendent of Project LIUMPTY as presented.

Caramemus

approved unide, forsten incolitianos

Attachient:

Project Vutline LINMPTY

CheeS, FrOpS DiVIsion

30 Maules

Date

Stait coordinatien:

For C/FI/OPS -s/V. Hoffbann

For CI Staff -g/R. Brown

For DC/CCD/ME -g/F. loungblood

SECRET

---

## Page 105

14-00000

SSET

MEYONDON SORS

Chief, FI

SUEJSCT

Anend LISHPTY Projact to Include

pecial Benefit for Oliver i

SCANTLING (ps) and to Include

Lorise J. MIC.III:O (ps)

iANgIARTSRS CASE OFFICER!

BAd.

3555 or 3152

DAYS 5 arch 195g

1. It is requested that approval be granted to givo Oliver G. SCANTLING a

special baneiii of one year's salary to him or his assigned hairs in the event of

loss o! llie or total disability if incurred in the performance of duty. This

beneilt was included in a contract prepared in the field and signed by Subjact on

15 February 1957.

The contract was not submitted to Headquurters for approval

until Decenber 1958.

The Station and WH Division do not want to dolsto this

bene it fron Subjact's contract at thig time and we feel Subjact deserves this

benefit.

jAiTunG, a civil engineor, 19 a Mexican citisen, who 1s 40 years old.

He was granted an Operational Approval on 2 Decembor 19511.

employent with susail as a footman on the Lipstick physical survoillance toan and

gradually beurre s driver of a surveillance automobile, then toam leader. As team

loader ho was responsible for the operational deployment and administrative direction

of the entira LIPSTICK team, throe automobiles, four photopraphic and radio dispatching

basehoises and the attendant mobila and stationary radio equipment. He collated the

fragmontary surrelllance reports into finished intolligenco ruports for stury by the

Case Officer.

SCANTLING developed into a fine investirator and has obtained infor-

mation whore other Station investigative ascots have fallado

3. Almost all of SCAlTLINd's time now is spent following up leads obtained

from

telephone intercepts and photographic surveillances.

Fron July through

December 1955 he made approaches to individuals performing servicus for the Soviot

Embassy and he zada a detailed casing report of the West German Embassy. In adition,

ho condicted nary routino investigations and surveillances.

Tha Station plans to

have SCA: TLI?" attempt to recruit the landlord of the proposad basehouse for a

LINIMENT (FI/D) operation. SCANTLING no longer handles the surveillance team and the

Station cians to continue to use him as an independent asset.

SCAr.TLIUG has in his

possession officisi cradontials of the Federal Socurity Polico (DiS).

He has used

these credentials in making contacts with targets of various sunsitive Headquarters'

operations (i.0., IONAYPOiL).

Lo As a graduate engineer who has spent at least ten years in houso construction

in Mexico, ha nas been invaluable to the Station in submitting detailed casing raporta

includini detaiied and professional plans of technical targets.

He has been commended

by ISS for the support rolo he has played for them.

He has submitted several casing

reports on the Soriot imbassy and is an unparalleled source of information to the

Station for inforsation about the Embassy's construction activities, modifications

and reasans for sate.

SECRET

---

## Page 106

14-00000

5.

For your infornation there is attached the station's revleu of sül! TIm

for the period July through December 1958.

It is deliered you will find lis nevert

of intorest and rurthor support the justification ditiined ajova for tira grantina to

SCARTLING of the arecial doath and disability beneri. This agent assessaunt statos

"Oliver 0. SCANTLING nas continued to perforn his assinod tasks in an outstand¿&

manner. SCANTLING's polse, common sense, education, idualogy, and native ability

facturing company adds to his long-rango potentiai as & duPink agent". jcaitles

has excellent cover as half-owner of a local f'irm wich ranufactures fara insura-

nents and he represents the high calibra of porson bich KUlARk requires for tha

institusion of their long-torn residont agent progran.

óo The LIE:IPTY Project (now approved for $95,250) vill not be asunded at this

tigate.lnaluda.an.extra jear's.salary.dor gCA/Tuai=,00).

• In the event 1t

becomes necessary to fulfill this comnitment during ma project year, and lê tia

amenso cannot be absorbad by the present project sutiarisation, an anendent will

ba submittod.

7. It 13 also requested that eirective 1 Marci 1959 the LiBiTI Projact be

amended to include Louis:J. 'ACHINO, a Contract Ageri, Neo is a Station support

asset. Her On was

reinstated on & August 1958 (C-42i52).

She was fornerly included

under Project LIFiAT.. Howavi, the Station requirazarts for general translation

Hork increased to the extent that it was necessary to uss dACIO to translate raports

other than those originating from LIFSAT.

It was tre-afore decided it would la nary

appropriate to include hur under LIcitY.

She does sizing of reports and non-sensitivo

translations.

She is paid on an hourly basis of a2.ià, an estimated yuarly salary of

33,500. The Station statod that the prosent litter hoject could acsoro the expansa

of her glary for the remindar of the Project year.

Attachmentss

Folder with LIENTY Project Approval

Envelope with true namas

HINK 12005 (1 COOY) FAPOR.

Charla Wholecom

Plung:

13/Trun/59

SEGRET

---

## Page 107

14-00000

SIGNET

-24.20011

MIMURANDUM PURE ChlOS of Operations, 20/P

SUBJECT

• Projact Lutpl (Approval

TH - Harico Cit

l. The attached project, originating in Wi Divlaion, 1s presentoi

for your approval for an initial pariod fron 1 Decenbar. 1958 througt

30 Novamber 1959. The projoct providas for the development of operational

inforsation througà physical and photographia surveillance operations in

support of other Moxico City operations, partioularly those targettod at

Soviet poraonnel and inutallations." Previously these operationa vere cos-

aucted for the most part under irojocts upstici and uvuisti. They aro

Incorporated in this now project because of the june 1958 compromise of

LiPSTICk and to accomplish a nore orderly administration of certain opera-

classl gupport assets.

2.

Authority la requested to obligate $95,380 fron the DD/P-WH

Division operating budgot:: $05,580 for the current flacal year and

$27,500 1n fiscal year 1960, subjeot to the avallability of fusdo.

Those

estinatas Inolude:

(a) funds for the compensation of the presently-

recruited fifteen action and support agents, six new agents,

and tho

prinaipal agonta:

Raymond H. GRENDE (p) (LIMPTY/h, formerly LIPSTICK/20)

and OLIver G. SCANTLINO (p) (LIEMPTY/2, formerly LIPSTICK/19); (b) fuada

for the compunsation, travel, allowances and Headquarters' training of two

contraot agenta, Sinon D. CLACKETT (p) and Wilma J. FIORDALISI (p), his wife,

who aro hereby transfarred. from Project LIMESA; (c) funds for operational

expansas and equipment,

Including the purchase of four new or used vehicles

as replacemonta for previously authorised vehicles and their maintenanco,

and a si vahlolo for SCaNTLING, (d)

the ront

utilities and naintenance of

sarehouses; and, (o) otber appropriato operational expanses.

3.

The attached old Project Outline, a covering senorandur fron the

Diviaion, and an addandun to the Project Cutlina, review the personnel assets

and facilities transferred from the LIPSTICK and LIJSW operations following

the partial compromise of LIPSTICK in June 1958 and describe the concopt of

gent personnel, particularly the prinoipal egonte

ro used also to conduct separate investizations, make recruit-approaches t

ESO.DT

---

## Page 108

4-00000

Individuals of operational Intereat.

perfora other aupport activities.

LILYRIC and LICAuLA, bave been. in operation for alsost three years vithout

havlag. been in auy coupromiaing situationa ingofar sa lie Statlon knous.

Tha LIPSTICK unit, a panel truck equippod uith cameras, otc., 1s conaldorad

a partioularly valuablo andot by the Flold, da a roplarament for a staff

agent, Wiltred 0. CIVAR (p), who diracted and tralsol the LIPSTICK survoll-

lance toan, the husband and wife toan of CLACKiTT aNl SIORDALISI aro propogod

‹as qualifiod Individuals to rocruit, train, and direct the sey LINPTY aun

veillance team and saintain its rocordo. Appropriate notional cover vas

arranged for then vhile in their previous profoct, LINESA, as they reaido In

Mexico under trua sases.

One of the principal afeats, CARENDS, u1ll baro no

contact with the new surveillance team, but will bo used to conduct spocial

Investigationa, counter-survoillances, and for other support notivities.

The CI Staff commenta that LIMPTY provides soveral typos of physical

survelllance, all of vhich provido information of tI interoat, and 99 a support

sochanien, a production review 1a not appropriate or nacogsary. The CI Staff

states further,

that with the compronise of the LIPSIICK surveillance tean

the Mexico City Station lost 1to only reliablo and estiolent surveillance tean,

LIMPTY representing the Station's effort to repisos that asset.

Pecause of

he great number of CI targote in Mexico City, the CI Staff bellevos it 1a

essentlal that the Station be given the opportunity, torough this project, to

build another aurveillance team capablo of oparatiny against gensitivo targets.

duditlonally, the Cl Staff balloves the casa officer should work at dev-sing

ostensible gources of incomes for the agents which will stand the scrutiny of

friends, relatives and lesa friandly forces.

FI/OPS suggests that the Division consider a gradual reduction of the

considerable financial and personnel comnitments in this project in view of

the favorably developing LIENCY liaison relstionship.

FI/OPS balloves that

a smaller, note nansgeable support group, with froster Station emphasia on

selectivity of tasks and targets could well rasult in nore effective CI and

FI productivity.

---

## Page 109

14-0000

526.81

'sor

.......

• I rocomond approval of the project and the transsor of thi

contract agonts as outlinad above.

The Diviaion 10 roquestod to tak

Beujamin A G. Fulle Bus

ENJEMIN A. G. FUNHOR I.

Chief

FI/OPS Division

Approveds lichardthe

COP-DD/P

Attachmentar

Project Outline LIKMPTY

Addendun to Project Outlino

гашений

Foreign Intolligenoo

18.10.8; 1050

Date

Staft Goerdinatiers

For C/CI Stalf

-8/R. Brown

For C/FI/OPS

-g/V. Hoffnann

C/CCD/*C

-g/F. Youngblood

C33-2T

---

## Page 110

14-00000

SECRET

MEMORANDUM FUR: FI/DiS - Projects Branch

CRYPTONM:

LIEMPTY

DIVISION: _

western Henlabhere

STATION:

HEiDUARTERS CASE OFFICERS

DOM, 2120 Barten Hall

Ts 15 Secentec 1ese

1. It is requested that the LEMPTY Projoct approval request bo

amonded to includo Simon D. CLiGNETi (ps) and ü1lma 3. FIORDALISI (ps)

under the LIEMPTY Project effective i January 1958, No additional funda

are required.

2. It is also requested that the LIMESA Projoct be rended to doloto

Iron this Project these two Contract Agents effective 1 January 1958.

Robert in Plan

Charles ir. Anderson,

Charle W. Chelsem

116 alec 1958

Attachments:

'emorandum (in quad,

invelope with true

names

SECRET

---

## Page 111

14-00000

SECRET

Roquest for Amendrent to LEMITY Project

1. It 1s requested that the LIEMPTY Project approval request bo

amended to Irclude Simon D. CLICKETT (ps) and illma J. FINHIALISI (ps),

U.S. eltizens and contruct agents, under this Project in place of the

Staff Agent written into the field project outlino.

At the sano time 1t 18

requested that the LiMiJA Froject be amended to delete these contract

agents from the latter project.

2. CLACKETT and FIORIALISI are nou approved under the LIMESA Project..

They were recruited in

the United States to occupy a sensitive LiMiSA base-

because of the sensitivity of the operation and the equipment to be

used.

The §tation sald appropriate documentation and backstopping could

be secured for those agents so they could be given false identities under

which they could live while they occupied the bacohouse.

3. 19X4-2777 (1N 265191, of 14 Noventer 1958, notified Headquarters

hat security factors and difficulty in obtainine adequate documentation

and

backetopping precluded tre use of U. &. citizens under WiMSd and re-

quested permiesion to use indigenous agents for this operation. After dis-

cussions tetween John Bi.Di, Chief of the lexican desk, with the LlNESt/

LIBMETY Care Officer In Vexico City, and discussions between representa-

tives of H1/D, 06, ISS, and iH at readquarters,

Headquarters concurred in

the field's operational decisión to use indigenous agents in the LiMESA

Project.

CLACETT and FIORDALISI received only a very superficial briefing

regarding the LIMESA Project.

It is not believed Subject's lindted know-

ledgo of this sensitive operation will pose a security hazard.

4. Construction on the LiMiST houses is being kept about two weeks

from completion until indigenous agents can be cleared and recruited.

delay in eompletion 1s normal because all construction money in Mexico has

becore extremely tight because of the recent presidential inauguration.

The Station believes CLiCkilT will be an excellent replacement for

wilfred 0. CLC.Ei (ps), former Staff Agent under Project LIrstiCk, who

directed and trained that surveillance team.

CinChErT has shown a remarkable

for clandestine operational activit; and surveillance and investi-

gative sork in particular.

taking this assignment for KUB.FK. 'The Station needs a good bilingual agent

to recruit, train, direct, and develop a strong dependable physical surveil-

lance team under LiETY.

6. Glearances and Contacts: CLiChElI was granted a PCSA on 23 July 1958.

A POA/CA for use under IlMESA was requested on 19 Aurust 1958. FIDUALISI

was Grarted an On for use under LIMESA on 14 November 1958.

Requests have

been submitted to amend their clearances for use under LEFTY, ChuCKETT

and FIORLALISI have signed contracts effective l September 1958. The

sensitivity of the Lilitst Project required them to leave their joung son in

SECRET

---

## Page 112

4-00000

SEGFET

-2 .

the Undred Stutes. Secause of this a special benefit of perialle trips to

their home in Arizona was Incluied in their contracts.

Under intri thair

quarters were to be provided.

Ar arendrent has been requested to their

contracts deleting the special benefit and adding educational and quarter.

allotiancas.

¿otivation and Centrel: CLiCKETT and FIORDALISI are extresoly.

patriotic and highly motivated as eridenced in their willingness to under-

tako the WINESA Project and be separated from their son.

They have indi-

catod thoy are nore than willing to so whatover is requested of then, no

• matter what personal sacrifices and hardships are required. Their can-

plete livlihood is dependent on treir lubrii income.

8.

Tagks: CLiCKETT will recruit, train, and direct the LlENPTY

survelilance team.

The Station hopes to develop this team into a najor

Station support asset.

ie will raceive instructions and direction from tho

FICRDAIISI will be used to do all the clerical and

administrative work for the lucil surveillanco team.

inserte vork or eno hit sur

9.

Comunication and Contist: CLACKETT will contact the Station Case

Officer in a clandestine manner.

All secossary security precautions will bo /

taken.

CLACKEM will also contact his surveillance agents under a cover

which will be determined later by the Station and CLiCKETT. In view of his

Mexican lackground, CLiChili can pass as a Mexican.

Details of communication

and contact arrangements with KiNk will be arranged by the Station. Under

LEIFTY CLA KETT will be contacted by the same Case Officer he is now con-

tacted by under LiMESA.

CLACKaMT and FIOPDALISI will be in direct contact

with relatives and friends in the linited statos.

The cover compary has,

untll now, been serving as a letter srop and contact point far emergency

nessagos.

10. Cover: CLACKETT and FIORD ISI entered Mexico on United States

documentation and it is planned they will continue to live in lexico under.

CLAChETI has a notional cover as a public relations consultant

which was established by CCD/VE :o use with friends and relatives in the u. S.

The same cover story

can be adopted to cover their proposed use under liPTY

vis-a-vis thair United States friends. The Station is working on local cover

for CLiChiTT to use in Mexico.

l. Anticipated Costs: It is anticipated thit the following expense

111 be incurred by CLACisIT and FICADiLlS)

Compensation:

CLiCKOTT

($7750/57)

FIORDALISI: ($4040/57)

2100

3200

10,800

Allowances:

Educational allowance

suarters

($2503/55) SECRET

320

2500

2,820

---

## Page 113

14-00000

SECRET

=3 -

Trayels

PCS

IDY to Headquarters for

training (including

30 day por dion at

$12 per day).

300

648.

Total

A total of $14,470 was Included under the LEVITY Projoct approval

request submitted on

24 November 1958 for a Staff Agent; thereforo,

additional funds are required.

- 948

14,368

i...

---

## Page 114

4-00000

SECRET

24, November 1958

NIVORANDÚM FOR: FI/OPS-Projects Branch

SUBJECT

" Juntification for Automalles under Project LISPTI

1o: It to roquested that the Madeo City Station be authorisod-to

purchase three wied sedans for use by the LIMPTY survelllance toss.. Tha

Station plans to expand the ulstil survetllance team into a larger, valla

triained physleal survelllance asset.

they will noed three autonobiles.

Privato automobiles of comercial transportation will not be estisfactary

since the cars must be outfitted with tra-say radios.

Authority 1a also requested to purchase a panel truck to be usad

In the LIANTRAP operation under this Project which mounts mobile phota

graphic surveillancos.

It 1s also requested that a quasi-personal car be authorised for

Oliver G. Scantling (ps).

Scantling is an indigenous agent under oral

contract. A car is a preroquisite for his work for KUBARK which includes

easings, surveillances, and investigations, Because of the sensitive

nature of his hork, and the heavy use made of the car, tha Station has

decided that Scantling should be furnished a OP car.

LIEMPTY agents were formerly carried under the LIJERSEY and

LIPSTICK

Projects.

The vendales used by the LIEMPTY agents under these

other Projecta will be disposed of and ner ones will be purchased after

the above TVA has been approved. The vehicles which vill be replaced

aro MY 2148, MY 214?, MV 2138, and MV 20i1. One of the survelllance

cars will be new and will not replace an ald car.

It was decided that

these vohicles should be replaced rather than transferred to the LIE PTY

iroject for security reasons and because of the age of the automobiles.

The automobiles are 1951 and 1952 models and have been used for sensitive

surveillance work for over tho yasrs.

The panel truck which was used in

tO LIENIRAP Operation under the Wistics Project has been operating for

truck, also dictates replacement of this rohicle.

. KING

I dor, ND

SECRET

---

## Page 115

4-00000

PROJECT

SECRET

(Then Filled 1a)

CIA INTERNAL USE ONLY

SUPPORT ANNEX - TABLE OF VEHICULAR ALLOWANCE

8. SEA10R STATE

3.

1 7888

LIETTY

TYPE OF ACTION (CROCA anO)

А. ЙКО ТУО

ANIMOMENT D% EXISTINO TVA

TYPE

seon 2 or li door, 5 passengir Amorican

of foreien

STATION MAGON

OTHER (Lla8 bolow)

truck, panel, Anericar, or forelen tie.

AREA

a. DIvIstON

0. ВАЛИСИ

C. OE8K

REQUESTEO ACTION

TOTAL

TIT

lexico

4

-..

c.

(18

128

148

(5)

0.

TOTALS,

REVIENED BY

SIGHATURE LOGISTICS OPFICER

DIVISION

jami, S Bermell

wit

APPROVED

DIRECTION OF DOP

9-571

1116 u88 PrevIous

5

DATE

26 Mor i855

APPROVAL REQUESTED BY

SIGNATURE CHIEF, AUMIN.

DivisioN

Виснею

9.

AUTHONIZEO

Teare

AY SIRECTION OF 001S

SECRET

CIA INTERNAL USE ONLY

anTE

120-980

---

## Page 116

4.0000

CONFIDENTIAL

NOTICE

THIS FILE HAS BEEN PROCESSED AND RETIRED. DO NOT

ADD ANY DOCUMENTS TO THIS FOLDER,

FORWARD CS

DOCUMENTS THAT SHOULD BE INCLUDED IN THIS FOLDER

TO RID/RPU GE-58.

NOTICE

CONFIDENTIAL

RM

і говм

2593

(7-13)

---

## Page 117

SECRET

M: (Headquartera companon!)

WH/1

TO

SUBJECT AND PROJECT FILE REQUEST

AND FIELD NOTIFICATION OF ACTION

IP/AN

: (Stollon/80so)

FROM: (Diviston)

Mexico City

• WH

INFORAUTION FOR REQUESTERS

COMPLETE ITEMS I THROUGH 12.

TEM S-ALL FILE TITLES MUST DE STERILE SINCE THEY WILL

IT 1O-SINUE AD TOO NEED ARTMING MATARE AF

IPPEAR ON THE FIELD COPIES AND ON MACHINE LISTS

LATEO TO THE THE COVEMED DY THIS MIQUEST. IIEM 1O MAY

ITEM O-ALL REMARKS MUST DE STRILE.

EM Y AND B-USE FIHST THNCE LETTEHS OF DISPATCH SYM

BOLS FOR FIELD

TALIONS AND LIST MEADQUARTENS ELE

MENTS ACCORD NO TO ESTAULISHED NUMERIC CODES.

OURSE CONSON FOUR CAN OUR PRON CUT AAASE:

INFORATION CONCERNING FIF

TYPE OF FILE

2.

COOK IFILES NUMUER

COUNTRY NUMUEN

CATEGORY NUMBEW

TSFECIFIC DURITET NUMERN

SUBJECT

PROJECT

050

3. FILE TITLE ISPECIFIC SUBJECTI IPHOJEC IS LIMITED TO TS SPACEST

006

074/1

KDFACTOR

ACTION REQUIRED

OPEN FILE

AMEND FILE TITRE

& REMARKS FOR FIELO DISTRIUUTIONT

ANALYSIS ACTION

CLOSE RILE INDICATE SAOSITIONI

REOPEN

RETAIN

DisPOSITION

/DESTRUCTION RECOMMENDED

THRU IDATES

7. INTERESTED STATIONS (PROJECTS ONLYI

Te. INTERESTED HEADQUARTERS DESK (LIST ACTION DESK FIRSTY

INM

050

FILES ACTION

RESTRICTED

UNRESTRICTEO

•Ya COMMENTS INCLUDE SPECIAL MEADOUARTERS ROUTING INSTRUCTIONS,

SENATE FLUES AND

TOMFiCE Pa DASKENTLY TO

NDORSEMEN

SIGNATURE OF BRANCH/DESK R. C

23 July 1973

FORM 812

OBSOLETE PHEVIOUS

EDITIONS

12-65

COORDINATION

SIGNATURE SCARPANCIDESK R. O.

50

SECRET

POUT ARROVE APPROVAL

06

74/1

38

I-CS COPY

---

## Page 118

14-00000

DISPATCH

(LASSHMAIION

SECRET

Chief of Station, Moxico City

1430

Chiof, Western Hemisphoro Division

Termination of KDFACTOR Projoct

ACTION REQUIRIO • RITTRINCIS

REFERENCE: HMMA -42, 197

PROCESSING ACTION

MARRIO FOR ENGI KING

NO MEDI TIRE MOVIRO.

ONET QUALUHO DESE

•CAN JUDGI INDINING

This is to adrise you that the formal termination of tho

IDFACTOR Project was approved by the Associate WOMACE on 25 May 1973.

James B. KARDENETZ

"314"

DISTRIBUTION: 2-COS, Moxico City

E2 IMPDET CL BY: 055272

CROSS REFERENCE TO

1 - WH- 1/FI

1- IP

AMITES

1B X

DISPAICH SYMBOL AND NUMBER

HMMW -1246 Z

CLASSIFICATION

S BC RBI

OFIKE

KH/1/D/

OFfi

Hens

OFFICE SYMBOL

DAlE

RECORD COPY

DATE

1 JUN 1973

TYPED:

HOS FILE MUMBIR

31 May 1973

50-6-74/1

ORIGIMATING

TYPIST

Nulley cs

COORDINATING

OFFICER & MAME

1073

OFFICE SYMBOL

ЛC/WH/1

roes

53

USE PREVIOUS EDITION.

MFG 11 AS

RELEASING

OFFICERS SIGMATURE

Raymond Swider

DISPATCH

---

## Page 119

4-00000

14 May 1973

MEMORANDUM FOR:

SUBJECT:

Acting Chief, wy Division

KOFACTOR Project Amendment and Termination

1. The KDFACTOR Project, which provided photographle

survelllance from two vantage points of the Sovlet compound.

In Mexico Clty, mas determined to be compromised due to the .

VHBLANKET case. The five agents vere terminated in July

1972, but the base houses could not be terminated until

January 1973 because It was necessary to sell one and the

termination of the second was tied to the termination of

KDABBEY who owned the second base nouse. It was necessary

to pay rent for several extra months until these other

terminations could be effected.

2. The base houses and agents have now all been ter.

minated and the Station already has rented a replacement

safehouse with new agents to provide the same coverage

(KDALCOVE) .

3. Approval of the amendment and termination of

Project KOFACTOR is recommended.

Herbert N. Natzke

Acting Deruty

Chief

Western Hemisphere Division

---

## Page 120

DISPATCH

Chief of Station, Mexico City

SLASSISACAINCY

SECREL

PROCISSING ACTION

MURID FOR DOT KING

NO INDLING MOVATO

ONLY QUALITO CASA

CAN RIDGE UNDIXIRD

Chief. Western Hemisphere Division

" SummaTy Of KDFACTOR ProjeCt Security Roview

ACTION KHOVENIO - RIFERIMKES

Forwarded under split transmission for your information

is a copy of the NDFACTOR.

security revlow. Also included are

tno memoranda containing C/WOLENS and C/WOMUSE comnents on the

security revion.

Roger l Bicago

Roger W. BICEGO

ATTACHMENTS:

1. Loft Side - herewit!

2. Right Side - U/S/

DISTRIBUTION:

Orig. & 1 - COS, Mexico City

CS COPY

CROSS REFERENCE TO

DISPAICH STEABOL AND MULABER

10044-1906don

DATE

2 8 JUN 1972

NIX What 21 June 1972

SECRET

OFFICE

WH/1

OFFICE STABOA

John Davis

DATE

150-6-74/1

DRIGINATING

TYPIST

cf

COORDINATINIG

16951

OFFICERS MANLE

1-WH/1 Chronc

I- IP Files

AN

AB--

IV

DIS; AD

01FKCK 5Y2A301

WH/1

DATE

USE PREVIOUS EOITION.

56.1189

PARASINO

John C.

Nurray i f

DISPATCE

---

## Page 121

• SEGRET

9 May 1972

IF: SORINDUM FOR: Assistant Deputy Dircctor for Plans

PiROUGIL

: MPS/BG/FI

SUBJECT

: Project NDFACTOR - Security Revicw

The CI Staff is satisfied with the fin

ecurity novicw of the AdFICTOR Project activit

and personnel.

2.

However, the Staff urges the station to

remain

constantly afurt to any

security repercussions

pertaining to all the terminated assets particularly

in wiel

of their past ironleife of the project

activity

and the

dact that some of then had family

relatives who also were aware of the project

activity.

Focus should continue regarding any

security problems pertaining to NDFACTOR-7.

In addition, the Station should continuc

to monitor any soviet investigation or probing of

owners and tenants involved in the properties used

under this project.

Frank W. Hughes

C/CI/OPS/WH

Distribution:

Orig. &

3

MPS/BG/FI

Wil/1/Mexico/

- CI/OPS/WH

SEGSET

EXM961 1620 29058125

833.723.29

---

## Page 122

14-00000

=1

8 - MAY 1972

MEMORANDUM FOR: Assistant Deputy Director for Plans

SUBJECT:

Security Review of Project KDFACTOR

1.

At the time you approved the renewal of Project

KDFACTOR in December 1971 you asked that the Station

You asked that particular atten-

tion be paid to terminated agents and their families.

The Station has made a security review and a detailed

report on

attached.

the findings, from Chief, WH Division, 18

2.

The report discusses the history of the opera-

tion,

describes security

problems of the past and steps

taken

to remedy them, and discusses the security and

operational

situation of the agents presently covered

by the project.

The report notes

that the two opera-

tional sites and their associated agents are compart-

mented from each

other and that processing

the film is

now being done inside the Station.

One section of the

report discusses in detail the assets who were formerly

involved in these operations but have been terminated.

The final section of the report describes current secu-

rity practices and notes that an alternate photographic

surveillance site has been procured and is

available

for use should the present one be compromised.

3.

The report demonstrates that the security of

the operation is being kept up to high standards and

that there are no potential security threats from

former agents that the Station is

not aware of.

FI Staff believes that the Station's security

review

and the attached report satisfy the requirements of

your

All celose

Jub. s. Campbell

Chief

Foreign Intelligence

Attachment

:....

---

## Page 123

SECRET

9 May 1972

MEMORAVDUM FOR: Assistant Deputy Director for Plans

THROUGH

: MPS/BG/FI

SUBJECT

: Project KOFACTOR - Security Review

The CI Staff is satisfied with the fine

Security Review of the KDFACTOR Project activity

and personnel.

2.

However, the Staff urges the Station to

remain constantly alert to any security repercussions

pertaining to all the terminated assets particularly

in view of their past knowledge of the project

activity and the fact that some of them had family

and relatives who also were aware of the project

activity.

focus should continue regarding any

security problems pertaining to ÄDFACTOR-7.

In addition, the Station should continue

to monitor any Soviet investigation or probing of

owners and tenants involved in the properties used

under this project.

Frank W. Hughes

C/CI/OPS/WH

SECRET

---

## Page 124

14-00000

SECRET

12: 34-17191

• ..

17 APR 1972

- MEMORANDUM FOR: Assistant Deputy Director for Plans

SUBJECT

: FI Project KDFACTOR, Security Review

REFERENCE

: ADDP Memo (DD/P 1-5899) to C/WHD dated

14 December 1971

1. In response to reference the following is a summary of the

KDFACTOR security review:

The Station summary of the KDFACTOR Project security is

as follows:

the Project. In response to the Headquarters request, we have

reviewed all phases of the operation and believe that Project

security is sound. The Project assets have all been with us for

many years and have established themselves as respectable long-

time residents of the area. All five assets, four in one famils

and one in another, are extremely security conscious and have

all been SGSWIRLED. The assets derive a substantial portion

of their livelihood from their Agency employment and would thus

lose a great deal if security factors ever necessitated a termina-

tion of their work for us.: As an additional safeguard, the

KDLITERAL and KDABSINTHE operations are compartmented

from each other, and there has never been any indication that

either segment of KDFACTOR knows of the other's existence".

The Headquarters desk has also reviewed the security of the

KDFACTOR Project and agrees with the Station that the security

is sound, In fact, as presently constituted, the KDFACTOR

Project is well compartmented, and each of the two KDFACTOR

photo basehouses (KDLITERAL and KDABSINTHE) is run by long-

term assets who draw a minimum of suspicion in their operational

activities.

Terminated assets could possibly expose the existence

SECRET

53c'2991 "ren 8:991. :

---

## Page 125

14-00000

SECRET S

- 2 -

of this project, but that seems unlikely from the Headquarters

review of terminated agents witting of present KDFACTOR

operational activitles. A Soviet investigation of property owner-

ship around the Soviet Embassy and their awareness that the

Soviet Embassy was under photographic surveillance in the past

could result in a Soviet investigation of the activities and contacts

of KDABBEY-l, the owner of an apartment building and four

houses close to the Soviet Embassy. It is doubtfül that DABBEY-l's

activities, which do not inter-relate with the activities of the

KDFACTOR agents, would in any way expose the KOFACTOR

Project operational activities.

2. A brief history of the KDFACTOR Project:

The KDFACTOR Project had its origins in the LIJERSEY

and LIPSTICK Projects, both active in the mid-1950's. In 1958, after

the arrest of two LIPSTICK surveillance team members, it was decided

to break off the more sensitive, uncompromised LIPSTICK assets manning

and supporting two basehouses for photo surveillance of the Soviet Embassy.

These assets were consolidated with one photo basehouse against the Soviet

Embassy and one surveillance team from the LIJERSEY Project into a new

project (LEMPTY), which was approved on 16 January 1959. The LIEMPTY

Project, renamed the KDFACTOR Project in 1971, consisted of three photo

basehouses, two viewing the front of the Soviet Embassy (LIMITED and

LILYRIC) and one viewing the rear garden of the Soviet Embassy (LICALLA),

plus a mobile surveillance team (LIENTRAP) tied closely with the LIMITED

basehouse, which was the radio control point for dispatch of the LIENTRAP.

• In 1959 the LIENTRAP surveillance vehicle and two team

members were arrested at the scene of a Cuban demonstration in Mexico

City.

A Station review of the security implications of this incident stated

that it did not materially alfect the security of the project nor exyose any

of the LIEMPTY basehouse operations.

(Note: As the basehouse operations

were compartmented, the only exposure possible from this incident would

have been of the LIMITED basehouse, which is no longer in existence.)

The LIEMPTY Project operated substantially as above until

the Warren Commission report was published in late 1964. In this publica-

tion was a picture of a person entering the Soviet Embassy taken from the

LIMITED basehouse.

The LIMITED photo basehouse was closed in Sept-

ember 1964, and all photographic surveillance was suspended as a security

precautio!

In January 1965 the LIMITED basehouse was relocated, and

SECRET

---

## Page 126

14-00000

SECRET

-3.

later that year the building it had previously been in was razed by the

owner, KDABBEY-l. From 1964 on it must be assumed that the Soviel

Embassy in Mexico City belleves it is under regular photographic sur-

veillance.

Further project changes took place in 1966 when the LILYRIC

basehouse was relocated to another apartment with approximately the

same view, In May 1968 the LIMITED basehouse was terminated and

LIEMPTY-6, the basehouse keeper, retired. This affected the LIENTRAP

coverage of Soviet vehleular movement monitored and directed from the

LIMITED basehouse. With the closing of LIMITED and the Station decision

to replace Raymond H. GERENDE, Mexican national contract agent who

handled the LEMPTY Project since its inception, the LIENTRAP mobile

surveillance team was underemployed, and the decision was made to move

it to the LEMBRACE Project.

This was done in early 1970, soon after

GERENDE had been relieved of operational responsibilities in December

1969.

The photo processing of the KDFACTOR (formerly LIEMPTY)

film take is now being done by the Station. In the past, it was done by

the Station, by GERENDE, and by KDFACTOR-1, who was terminated

amicably in early 1971. The building housing the KDLITERAL (formerly

LICALLA) photo basehouse was purchased in 1957 by KDABBEY-1 for

the Station. KDLITERAL is in a row of four houses all owned ostensibly

by KDABBEY-l but actually by the Agency. This row also houses a base-

house for FID's KDVAULT Project. The apartment building housing the

KDABSINTHE (formerly LILYRIC) photo basehouse is owned outright by

KDABBEY-1, who has been most cooperative in assisting the Station in

maintaining and occasionally moving (1965 and 1966) photo basehouses.

The LIMITED photo basehouse was also located on KDABBEY-l's property

when it was active.

The individual basehouse operations are and have always been

compartmented one from the other. The only points of breakdown in the

compartmentation have been: (a) the LIMITED basehouse was linked to

the LIENTRAP mobile surveillance; (b) KOFACTOR-I was processing

films from all the basehouses and could, therefore, be aware of thei

exact locations; (c) GERENDE was aware of all aspects of the KDFACTOR

operation, and has since been terminated; (d) Oliver G. SCANTLING,

Station contract agent retired in 1971, was aware of the KDFACTOR Project

SECRET

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## Page 127

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SECRET

-4

through his past work with LIEMPTY-6 and with GERENDE on KDFACTOR

Project activities: and (e) the fact that the two present basehouse properties

are ouned by KDABBEY-l, who is witting of the locationg and general

activity of both KDFACTOR basehouses..

3. Agents and Case Officers presently active in the KDFACTOR

Project:

As of March 1972, Oliver J. MANKUNAS is the case officer

responsible for handling the operations of KDFACTOR; Bruce H. FERNALD

is the alternate case officer. The following is a list of active agents in the

KDFACTOR Project:

A. KDFACTOR-2 (201-136454)

DATE OF OA: 27 December 1956

DATE SGSWIRLED: 27 April 1966

PRESENT POSITION: KDLITERAL Basehouse Operator

COVER: Accountant for a local bus line - works cover

job in the evenings.

B. ADFACTOR-5 (201-119961)

DATE OF OA: 9 May 1956

DATE SGSWIRLED: 2 March 1966

PRESENT POSITION: KDABSINTHE Basehouse Operator

COVER: Industrial engineer - works cover job during

the day.

C. KDFACTOR-6 (201-167567)

DATE OF OA: 16 October 1967

DATE SGSWIRLED: March 1966

PRESENT POSITION: Wife of KDFACTOR-5.

Co-KDABSINTHE Basehouse Operator

COVER: Housewife

D. NDFACTOR-8 (201-762111)

DATE OF OA: 29 November 1965

DATE SGSWIRLED: 3 March 1966

PRESENT POSITION: Son of KDFACTORS-5 and 6.

Part-time KDABSINTHE Basehouse

Keeper/Operator.

COVER: Part-time shopping (shopper) investigator for

Sears Roebuck de Mexico.

SECRET

---

## Page 128

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SECRET

-5 - .

KDFACTOR-9 (201-762112)

DATE OF OA: 27 July 1966

DATE SGSWIRLED: 3 March 1966

PRESENT POSITION: Sun of KDFACTORs-5 and 6.

Part-time KDABSINTHE Basehouse

F. NDFACTOR-10 (201-254181)

DATE OF OA: 14 September 1959

DATE SGSWIRLED: Not tested

PRESENT POSITION: Non-salaried. Wife of KDFACTOR-2,

(KDLITERAL).

COVER: Housewife

G. KDABBEY

DATE OF OA: 28 April 1954

DATE SGSWIRLED: Not tested

PRESENT POSITION: Non-salaried. President of

Construcciones Aztlan. Owner

and landlord of KDVAULT and

KDFACTOR basehouses.

Regarding the security of the above active KDFACTOR agents,

the KDLITERAL basehouse is handled by KDFACTOR-? with the assistance

of his wife, KDFACTOR-10. They have a long-time maid and a 13-year-

old son who lives with them in the basehousc. Neither the son nor the maid

is believed to be witting. The photographic equipment is kept in a locked

room, and the product is kept in a locked safe.

KDFACTOR-2 was recruited

by KDCALVERT-1, who is an active, long-term Station agent in the

KDCALVERT Project and who is not considered a threat to KDFACTOR-2's

security. KDFACTOR-2's activities are also known to his brother, the

former LIPSTICK-47, who was one of the two LIPSTICK surveillance team

members arrested in 1958 and who gave the police considerable information

and his family have occupied the KDLITERAL basehouse since 1957 and

have been discreet and security conscious in their dealings with neighbors

and relatives.

SECRET

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## Page 129

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SECRET

-6-

The KDABSINTHE basehouse is manned by KDFACTOR-5, his

wife KDFACTOR-6, and his two sons KDFACTOR-8 and KDFACTOR-9.

The SGSWIRL of 2 March 1966 went into detail on who is witting of

KDFACTOR-5's work for the Station. The result was that his immediate

family, including a married daughter who no longer lives at the basehouse,

are aware of the photographic operation. KDFACTOR-5 was recruited by

LIEMPTY-12, a U., S. citizen with a private company in Mexico City who.

is no longer working with the Station but who is considered patriotic and

no threat to KDFACTOR security.

4. Terminated Agents Possibly Allecting Present Project Security:

A. Raymond H. GERENDE

GERENDE is a Mexican citizen and was a contract agent

until his termination on 26 June 1970. He had been employed by the Station

Intermittently since 1955 and was used almost exclusively in support activities.

Since the start of the LIEMPTY Project in 1958 GERENDE had been directly

involved with this project serving as cutout to the basehouses, carrying and

processing films, and giving general direction to the project as principal

agent. In 1969, after years of excellent service with the Station, GERENDE

had serious marital problems which ended in separation from his wife,

5, and geare of excellent so i co

KDFACTOR-7. From December 1969 to June 1970 GERENDE was not used

operationally but was maintained on half pay with the hope the divorce pro-

ceedings would be completed quickly. When it became apparent the divorce

would drag on interminably, the Station reluctantly terminated GERENDE

and his wile.

Bruce h. FERNALD, career agent, met with GoRenDe

monthly from July 1970 through May 1971 while paying him his termination

bonus in ten installments. GERENDE is still living in Mexico City, where

• he owns sume proverty and has an income as an English teacher to employees

of two local firms.

He visited his wife and children in Holland in December

1970. It appears he may now be financially pressed as his English class

schedule has been cut back.

The Station as of 10 April 1972 had no informa-

tion that would indicate GE RENDE has violated his secrecy agreement.

There is an indication that GERENDE came to the attention

of the Soviets in 1968. A Mexican walk-in to the FBI office in Mexico City,

who was later interrogated by the Federal Security Police in 1970, said

that in 1968 he had been employed by the Soviet Embassy Second Secretary,

Oleg Masksimovich Nechiporenko (201-305870), to investigate persons

working with the Mexican Olympic Committee. The persons investigated

SECRET

---

## Page 130

SECRET

-7-

Included GERENDE, who apparently became a specific target of Soviet

investigation. It is unclear from the report of the Federal Security Police

how far the Soviet Investigation of GERENDE had proceeded. Nechiporenko

wa's PNG'd from Mexico in March 1971. GERENDE's possible exposure to

B. KDFACTOR-7 (wife of GERENDE)

HE-E

KDFACTOR-? is a Dutch citizen and the former wife of

GE REnDE.

She returned to the Netherlands in July 1970 with her children.

She had served as a support agent assisting GERENDE. She is believed

witting, in general terms, of GERENDE's activities regarding the KDFACTOR

Project.

She was terminated on 26 June 1970 and signed both a secrecy

agreement and quit claim.

After termination it became apparent that she

had considerable hard feelings toward both the Agency and GERENDE over

financial problems between her family and GERENDE. While the Station

was not directly involved in all the financial problems, the Station was

Involved in regard to her divorce claims against GERENDE's salary, a

large part of which came covertly from the Station. In July 1970 KDFACTOR-7

came to the Agency Headquarters and complained about her financial settle-

ment. In September and November 1970 she wrote two letters directly to

the Agency on the same subject. In late 1970 she also asked a Hague Embassy

political officer to put her in contact with the Agency; however, she did not

tell him the nature of her business. In January 1971 the Agency contacied

KDFACTOR-'i's brother, a U. S. Army civilian with a 'Top Secret"' clearance

living in Alexandria, Virginia, and was able to resolve the financial mis-

understandings with KDFACTOR-7. In January 1971 the Hague Station

reported KDFACTOR had, without Station influence, obtained a job as social

breed in ecold rep on ACT The kerosy in the Hague ias

C. KDFACTOR-1

KDFACTOR-1 is a Mexican citizen and the brother-in-law

of GERENDE. He was hired by the Station in 1956 to assist GERENDE in

processing the photographic take of the KDFACTOR Project (at that time

the LIPSTICK Project and later the LIEMPTY Project), ADFACTOR-1

SECRET

---

## Page 131

4-00000

SECRET

was later assisted in processing the photographic take by his wife,

LIEMPTY-5, who is GERENDE's sister.

KDFACTOR-1 was terminated

ii March 1971, and the photographic processing previously done by

KDF ACTOR-1 is now done in the Station.

and largely due to delays in film processing as KDFACTOR-l's medical

practice expanded. There does not appear to be any security problem

in the termination of KDFACTOR-l as he is discreet and also a close

TRACTOR as he is die

relative of GERENDE. The security of processing the film in KDFACTOR-l's

medical office was good as KDFACTOR-l's wife, LIEMPTY-5, was assist-

ing him with the processing and with the security of the darkroom.

D. LIEMPTY-5

LIEMPTY-S was hired by the Station in 1957 to assist

KDFACTOR-1 with the processing of KDFACTOR films.

She is the sister

of GERENDE and wife of KDFACTOR-l. She was terminated along with

KDFACTOR-1 in March 1971.

Due to her close relationship with GERENDE

and KDFACTOR-1, she is not considered a threat to the Project Security.

E. Oliver G. SCANTLING

SCANTLING is a Mexican citizen who worked as a Station

agent from 1954 until his termination without prejudice in February 1971.

SCANTLING is in an excellent financial position and has assisted the

Station in recent years largely because his strong motivation to work

against the Communists. SCANTLING worked as a surveillance team

leader from 1954 to 1957 and then in the LIEMPTY (KDFACTOR) Project

from 1958 through 1966.

principal agent for GERENDE. SCANTLING's termination was amicable,

and he is not considered a security problem to the Station or the KDFACTOR

Project.

F. LEMPTY-6

LIEMPTY-6, a Mexican citizen and long-term Station

asset, was retired in May 1968.

He had manned the LIMITED photo base-

house with his wife and son assisting him. He had been working with the

Station since 1954, but age and ill health had reduced his efficiency.

LIEMPTY-6 knows GERENDE and SCANTLING, but is not aware of the

names or locations of any of the present KDFACTOR agents and basehouses.

While he could give information on his participation in KDFACTOR activities

up to 1968, he has no motive to do this and is apparently happily retired on

his Agency termination bonus plus some financial assistance from his son-

in-law. He is not considered a threat to the security of this Project.

SECRET

---

## Page 132

SECRET

-9 .

There was one indication that the Sovlets were seeking

ut the-LIMITED photo basehouse and may have had suspicions. concernins

MEMPTY-6. This was a report by NDADAGE-10 that in mid-1966 Stanisla

Sergeyevich Silnikov (201-271103), a Soviet Embassy guard, asked KDADAGE-

10 to report on his neighbors near the Soviet Embassy. Silnikov expressed

interest in all the occupants of the new apartment building which houses the

NDABSINTHE photo basehouse, but did not mention the KDABSINTHE base-

house keepers by name. Silnikov did name specific persons he was inter-

ested in and these included LIEMPTY-6. KDADAGE-10, of unknown

reliability, said he did not give Silnikov any information,

between himself and the Station, he suspected LIEMPTY-6 and had heard

it rumored he worked for the Americans. In 1966 Headquarters already

assumed the Soviets were aware of the LIMITED basehouse because it was

used for radio direction of the LIENTRAP mobile surveillance. In any case,

the Soviets apparently took no action prior to the closing of the LIMITED

basehouse and the relocation of LIENPTY-6 in May 1968.

this incident has no implications that would threaten the security of current

NOFACTOR assets.

5.. Current KDFACTOR Security Practices:

The two photo basehouses, KDLITERAL and KDABSINTHE

remain compartmented, as they. have been throughout the history of the

Project.

The Station case officer responsible for the project meets weekly

with KDFACTOR-2, responsible for the KDLITERAL basehouse, and with

NDF ACTOR-5, responsible for the ADABSINTHE basehouse.

In these

meetings he picks up the product, provides new supplies, pays salaries

and handles miscellaneous administrative matters.

These are car meetings

usually held in early morning or at night and the pickup puints are changed

regularly. Meeting time is kept to a minimum and meetings are pre-

scheduled whenever possible. The photographic product is processed in

the Station, thus increasing the security and timeliness of its handling

over the past practice of having NDFACTOR-1 process it in his office

darkroom. The case officer only meets with KDFACTOR-2 and KDFACTOR-5;

however, in emergencies other witting family members of either basehouse

Cil be contacted and met. In case the present sites or personnel are com-

promised, the Station has rented another apartment in the building housing

the KDABSINTHE basehouse and has installed members of the KDCALVERT

Project as residents. This new apartment offers as good a vantage point

SECRET

---

## Page 133

14-001000

SECRET

- 10 -

for photographic coverage as the KDABSINTHE and could quickly be

activated if for any reason the KDABSINTHE basehouse becomes

untenable.

Here they

Western Hemisphere Division

NOTED:

I Way Th

SECRET

---

## Page 134

10/81-5939

WEMORANDÜM FOR: Chio, Wesier Hemisphero Division

SUSJECT:

FI ProjeC: MORACTOR

FY 1971 dimendrica: No.l

Bienniai deeral

Proposa io: Focal

YoGas 1973 2ià 1973

1. On 10 Ducumdo: 1971 i a0praed subjoci actions

in ino amounts spucilud boiow:

b. EY 1972 Renewal

C. EY !?: 3erowal

¿ran: $23, 630; io 527, s9ü.

- Fu: $i9, 000

- 50: $20,000

2. I asi chi tho sation condico in toriod security coviciv

oi this operation, diving particuids ananda, io ino knowicago-

ibility oi corminiod agents ind licio tamiies as discuised in

paragrapi 3101 cuicrus nomoranium.

3. Aiso, i asi dri you provida mo iris liPS/ 3G) wits i

monorardun supore summauricing ina rusins di tie abora

(paragraga 2) secury coviow by s: dimicà 1972.

Cord disreal ar.

Assistant Dubusy Diractor dor Plans

220587

ADDP

MEMO Of 14 Decenber 197$

---

## Page 135

iN/O

170%

S8.407

DISPATCH

PROCISSING ACTION

SBCRET

Chief o1 Btation,

MoxiCo CItY

XX

MARNED OR BEING

NO INGENING PLANTEES

ONLY QUALIND DESK

¡CAN IUDGE INDI KING

ChloR, Hos

Hostorn Hemlaphere Division

O Projoct LIEMPTY FY 1971 Approval

IN POPS

Ref: DIRECTOR 038379

Project LIEMPTY has been approved for PY 1971 1n

the anount of $23,635.

It has also been amended for FY 1970

1n the amount of $10,498 (from $38,970 to $19,168) in order

to cover termination payments to Raymond H. GRINDE and his

W1f0, LIEHPTY/19.

The approval carried a MOMACE caveat that

torninatión paymonta to GERENDE and his gife must be made

on a monthly basis as described in the referenced cablo:

plans in your first quarterly progress report for FY 1971 so

that we can meet our obligation to the approving authoritles.

3. A copy of the approved FY 1971 renewal request 1:

bolng forwarded by split transmission for your I1leg.

Spencer N. HUTCHINS

Attachments:

Distribution:

Orde. and 1 - COS, Mexico Clty

CROSS REFERFACE TO

LIEMPTY

DISPAICH SYMBOL AND NUMBER

DATE

_HMMŸ-17950

CLASSIFICATION

10 June

12 JUN 1970

70

HOS FLE HABIR

SECRET

WH/1

OPTIKE SYMBO

ORKE EM: /

W.R. unzef

DATI

050-006-074/1

, ORIGINATIAN

TRASI

Imr

COORDINATINO

OFFHER'S NAME

4167

1 - RI

• Chrono›

AM Leste)

OfFICE SYMBOL

C/WH/1

RHEING 11

DATE

TOMISES SOME LATer IT.

10 June 70

John C.

Murray +

140)

DISPATC

---

## Page 136

4-00000

(when Ff Red In)

DATE I see, = '20

PUNDINO

3

NO.

(DOCUMENT I FOR

THIS PROJECT)

NOTIFICATION OF PROJECT APPROVAL ACTION

TO: CHIEF OF STATION TASES MiedeN y

ATTENTION: FINANCE OFFICER

INFO:

PROJECT LLEMETY

_FAN 0135-1009

TYPE OF ACTION

PERIOD OF ACTIONY:/

TO IN71

•EWAL

→ PREVIOUS ACTION IN TEE FISCAL YEAR

TOTAL FISCAL YEAR APFROVAL

EXTENSION

TERMINATION

AMENDMENT

FUNDS AVAILABLE

FUNDS AVAILABLE

OTHER

4744?

=t0

" !:1)

15,35

CHIEF, WH/B&F

PROCESSED

APPROVED

HQS USE ONLY

TYPE OF ACTION

PERIOD

AMOUNT

wiliest silens

SECRET

(When Pilled In)

---

## Page 137

14-00000

SECRET

PROJECT APPROVAL NOTIFICATION

PROJECT

-Jauaaro

ACTION

MEN PROJECT

АМЕМОМЕНТ

RENEWAL

TRMMINATION

«ATENSION

отноя

APPROVINO AUTHORITY

ADDP

PERIOD OF APPROVAL

PRoM 1 Pal 1970

CONDITIONA OP APPROVAL

DIVIDION

BRANCH

окАк

Hoodoo

CASE OFFICER

Jacks Bering

AUTMORIZATION

TOTAL AMOUNT AFPROVED

29,635

EXTENDION

4167

_ то 30 бото 1972

1502

198

1135-2009

AMOUNT

823,683

SIGNATURE

MPS/DG

JOATE

CH WAY :970

DISTRIBUTION

OFfiCER

ToRM 849 KOTTIORSIOUS

SECRET

Aps'86

(98

---

## Page 138

14-00000

SECRET

PROJECT APPROVAL NOTIFICATION

DROjECT LIZIPTY

ACTION

aH//

_PROPRIETAR

GOINKET

AREA

DIVISION

NEW PROJECT

AMENDMENT

TRAMINATION

EXTENSION

OTHER

PROVINO AUTHORITY

ERIOD ON APPROVAL

FROM I JULY LICE

ONDITIONS OF APPROVAL

ANDP

- To 30 Jun 2070

GRANCH

JERK

Hondas

CASE OPHICAR

dook Berry

AUTMORIZATION

TOTAL AMOUNT APPROVRO

3119,1268

FY

150

196

0235-1009

eXTEMBION

4267

849 b68

Profoat aunded for an additional $10,498 Sar FI TO.

SIGNATURE

MPS/AG

FINANCE

(Stened) F. lo durio

IDGE

VISIO

DATE

DISTRIDUTION

SECRET

crite :

(5)

---

## Page 139

770.

PRINCIARIAT DISSEMIMATION

JUNT NOTINEO

RONANCE CORY

SIASURO

0V:

DISSER DY

ICTION UNIT

АСтюм

986

ATI

dil

CASSIFIEO MESSAGE

3 N5 CR5T

REPRE UDA OR FIERORY PROMISITE

Xo has 190 9-30 PH70

" POUT 101 ronOR MTIALSSE 81

PEN

BRANCH

FILE, VR RIAN. SR8

SECRET 192359Z MAR 70 CIIE MEXICO CITY 2766

DIRECTOR

LIEMPTY

REF: DIRECTOR D18246

20 Mai: 0 46 440

1. POUCHING LLEMPTY REPORT 26 MARCH. REGRET DELAY WHICH

DUE PRESS OTHER ACTIVITIES REDTOP FIELD.

2. FILE: 50-6-7413. GP-1

SECRET

SECRET

---

## Page 140

DISPATCH

Chief of station, Mexico CItY

SECRET

49:4017 4: 010/719

1'X0121110:0 1135

Chief,

Hestern Benisphere Division

' LIENPTY Project Approval (EY 1970)

Mad metin

Action Required:

None, FYI

Project LIEMPTY has been approved in the amount of

$38,970 for the perlod 1 July 1969 through 30 June 1970.

Of the total FY 70 amount, $38, 470 18 authorized for fleld

use, and $500 will be retained for Headquarters use.

Anthony B. WELDRAKE

Distribution:

Orig. & 1 - COS,

Mexico City

TRESS REHERENCE TO

RI

CHRONO

1

.AB

CISPATCH SINBOL AND NUMTER

HIMMW

-

17172

Evil

12 SEP 1369

-9 September

1969

на ні зальй

SECRET

- 50-6-74/1

OFFICE

WH/ 1

O#PHE SIMOSI

8.8. Barry

oks

'GURDINATING

jail

OFFICIAS HERME

6954

8X

AC/WH/1

CATE

18 kept

53

L'SE PREVIOUS EDITION

HEÜ 11-0

SELEASiNG

DIANES ICHATO

LAUNT ARICIA

Ernes't

Tsikerdanos

DISPATCH

---

## Page 141

• in

SECRET

when a

sharel 69

NOTIFICATION OF PROJECT APPROVAL ACTION

TO FIELD FINANCE OFFICER

PROJECT:

FAN:

TYPE OF ACTION:

HENRITY

4.35-16609

OTHER detes in fucking

NEW

RENEWAL

EXTENSION

_AMENDMENT

_TERMINATION AND DATE

PERIOD OF ACTION:

FISCAL YEAR PROJECT APPROVAL:

FY_

THIS ACTION:

PREVIOUS ACTION:

TOTAL FISCAL YEAR PROJECT

APPROVAL:

AMOUNT

FY.

43520

43521

FUNDS AVAILABLE FOR HQS USE:

4:000

FUNDS AVAILAELS FOR FIELD USE:* 21:40

*TO BE USED AS A GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

Kite

53-6.74

SECRET

(When Filled In)

---

## Page 142

DISPATCH

OASSITICATIO

10

Chice il Divinian

Chicie Sis Divisiom

FrOM

Chier ol Statione iraneo citale

LINTY troicct kenewal Recuest

ACTION RIQUIRID. REFERINCES

kelerences:

.

11H021-3516;

Novemuer lgi

13.

19841-53014,

1908

C.

D.

MCl-1

11:',

21

May 19.8

1.641-30000,

MAAW-1.984,

22 July 19us

10 January 1969

22 Innary 1y6y)

G. MaNICO CITY

3439, 11 larch 1909

PROTESSNG ASTILM

MARKED FOR PORTING

NO INDEXING RIOUIRED

ONLY QUANTILO DESK

CUI NUDGE IXDDUNO

lorwarded bcerwith and undor separate cover uy split trans-

mittal is a request dor lie ronewal di Progeed LINOTY ior Fy 1010.

tunds in the amount di ussia we are bein requested.

cat. (h,3o6

CUT"'!'I

REcorDS

OFFICER STA

Tho folla:lea iglian 1o

Attachment:

1.

Pro. eet reneval request,

?.

Proiect

renowal

icavest,

P.0. 15 - w. 42/e/2

cile

liots:

rotoni und coordiuato

in appropriato.

right side i/m

luit

sirie u/s/c;

NAT

OSS REFERENCE

- CAil: w/act h/w and u/s/

- C/SB w/att h/w and 1/s/‹

DISPATCH SYMBOL AND NUMBER

BP:1-0:710

FERRET

declass ":2: 20

DATE

14 March lyig

MOS PIE MIMATE

V10-1-11/1

---

## Page 143

Si

REQUSST FOR PROJECT RENSTAL

РАОТЬСТ

JIFMPTY

ST.ITIUN.

vexicn rits

CASN orerea ma P leseis

CHILF

ion sau ecar ( Cust

IRTT

RECORDS CETICET SIAUP

Teo colstr cetio 2, bet

eithorleod:

S:5ed:-

binia Vieniee

N.0. 1630 - ta biti/e/E

Nolu:

Ircaaan

•:**

Menets maa cotediaato

18 apprvpriaió.

i....

23 68 27u Taadüed

•1T'"

Asirooy

X

157

HMT919eTtdHnA-SeT!

55-6-7411

---

## Page 144

14.00000

SER

PROJECT LIEUPTY

REQUEST FOR GENENAL

1. CURRINT (BJECTIVES

The nverall obicetle of Project LIbliTY, now in

year of existence,

FISTEAL Installation, ita personnel and visitors, as

related targets o opportunily through stationary/mobile photo-

graphic and physical survpillance.mechantsms. Corollary

obiectives which are to be fulfilled through

Installations, nechantsas, and personnel are as follous:

1.

To provide detailed operational information pertaining

to the daily movements and activities of PoSTEal personnel,

particularly those

individuals of intolligence

as well as iniormation

on the costl, physteal plant aid

visitors to the premises.

2.

To collect operallonal microation on persons associated

with

and es imitriduals knorn

to levo connertions with the 1000e entellitence

sorrit's

or athen anatile lord thied are inimical lo the interoses

•I INFORT.

In preside cpritional support, counter surpillance,

and/or oiling prntectt.r

ponrations, us day de louded eped l! Station or to "=y be

a Canoes codes dee tale arrass ined

mate, the Lamel molite mail, and the sellires oi lout-tig

iontract arept, toront. G.a.J%:.

2l LIBUTY protot is the

ormorstom of tir blation's ceratioual procran against che

"stain, tarket and as such

is completoly responsive to triority à-1

of the Station's (peratino Dirertin.

Throughout the troiert year unace rview, Project LIKYY

continued to contributo directly and signlidcantly to th tuliill-

ment of Station and Headmarters roquosts and roguiredits for

coverage of mious targets illlong within the above cited iranework.

SEGIST

---

## Page 145

4-00000

SECRET

During the Troieet year troieet Linty provided all of the

lixed

oporational photographs and physaral surveillance reports

used in lexien City Station's operations tartetled arainst the

HUSTEAL Installation and personnel.

specific exanples on the

LILIPTY Froicet's progress and contributions will be lound in

Sertion

3 below. (strUCTIVeNESS)•

?. CHINGES

A. Cerational

1.

The na jon

change durind the preceding period Ins been

the closing

at the LIMITED baschouse and the termination of

This has resultre in consideraule financial

saving with no loss

in elliriony--lo the contrary,

as d

malter of inct.

The major crason for the change was the

lact that ITeM lY-i was cloutng less rollable with age.

He

was

not always

able to be on the job, and when he was,

his

¡ixed surveillance

reporting was occasionally inaccurate,

and

11s

photorraphy

was often poor.

Thore had been

considerable

overlap between LILYRIC aud 1.TMITED reporting,

and with the closing of LIMIT:D, the ITLYRic working hours

were extonded slightly so that full working hours of the

FISTEAL

installation continued to be covered.

The

only

disadvantago to this arrangement is that the

vantarc point

o1 the ESTall, Installation which had been shared by

LIMITLD and LILYRIC will now 40 ncovered during pertods of

annual lenre by TILYRIC personned (the LILYRIC personnel

are all nembers of one family and normally take their

leave together).

?.

There

have bern no changes

in the operatink procedures

and techniques

ON LT MPTY-" in the

LICALLA baschouse.

The

refinements described in the previous project Cutllne have

ween elfective

and have been

said of LINTRIP,

maintainer.

The same can be

which has become a much more flexible

tool sinco

its partial interration into the LIlACk team.

There have been no changes

in LILYIC procedures,

other

than expansion of coverage to include the entire

working

week.

Financial - LILIPTY-" was franted a salary increase, effective

1

May T9r8, In recognition of

excellent job pertormance.

LINDTY-14 and -27 were granted salary increases on 1 May 1068.

largely as compensation sor the extra

hours they agreed

insure full-tine coverage of the FOSTElL

installation by

lenoranda of Oral Igreement covering these

three salary

increases were lorrarded with HAM1-34613, 2 May 1y68.

LIMPTY-ll was granted a salary increase criective 1

of his increased work load with the LI URRICh

NCA was norwarded with mll-s ilos, ds D. cenver sis.

SECRET

---

## Page 146

14-00000

Dancinion

33

C. l'ersonnel

As noted above, lIbAPTY-i was terminated ellective

af say 190k In connection with the closing of the LiNITED

baschouse.

Termination was completely amicable, and

LIMITY-: recolved a renerous termination bonus.

LIMPTY-21 was hired as of 1 May 19.8 to help LILTRIC

personnel maintain their expanded coverage.

involved, as LIllTy-c; la part of the same

the LILYRIC personnel.

LIMPTY-Li had been

granted an 0d in IS0d and had been used sporadically since

that tine.

=. An amendent to GRINDu's contract has been requested.

This amendment would guarantee GRINDE ternination benetits

equal to those provided for by Mexican law, In tho excut of

GRiliDE's Lermination uy NOFIRM.

The amendnent would also

provide GiRINDH with i traduated scale oi bencilts

he decode to resign.

see MNMi-sial2, 27 January lus, 1or

3.

EFFECTIVENESS

Throushout the period under review,

rach operational component

o1 proicet IIEMPTY contributed

actively and concretely to che

1121111rent of the operational tasks levied on Station Mesico

High-lights of the accomplishmonts and the achievenents

01 each component are cited below:

A. 21450 Baschouses

1. LITED

Until lts termination, the LIMITD Installation provided daily

photographie, coverage

and physicil

surveillance of the main

installation.

During the soven-month

prriod from 1 November 1961 through 31 May 1968, the LIMITED

hase provided 91l tranes of operational photographs.

addition, the

LIMITED base provided over 1,000 pages of

physical

surveillance reports.

2.. LILYRIC

Durink the Project year under review, the LILYRIC installation

provided extensive photographic and fixed visual surveillance

front of the FISTEAL installation.

The LILYRIC base-

house provided the majority of the oerational photogranhs

produced by the LINTY Project decenber 2968, the LILTRIC

Drink the l5-nonth period

IrOn 1 November 1907 through 31

basehouse provided 15,331 operational photographs and several

SECRET BIBAT

---

## Page 147

thousand

pages of physical survelllance reports covering the

daily movements oi all FISTlL officers.

is a specific

exaryle of the

importance of LILYRIC coverage, it was LILYRIC

photos which made possible the identification

Of a WCLADY

citizen who had been in clandestine contact with an nEGRIP

officer.

This information was turned over to LnErGO, which

was pursuing the case.

In reneral, LILYRIC provides

the

Station

with a large vcrcontage of

the CI raw material

collected on the FISTEAL

tarset, such as automobile license

nurders, PCS and TDY arrivals and departures, unusual

actirities such as demonstrations, unusual or lengthy

alsences of personnel, etc.

Injormation also has

positive operational value,

but its most important use 1s as

the mior source of identification of FISTrAl personnel and

ni information on thris movements.

The Station has frequent

requests from LNiRGO which can only be fulfilled by LIMITY

colerage, and this "permarent and complate record" of FIStEAL

notirities is invaluable for servicing the CE requirements

oi boch weikH and LNinGo.

i. LICALLA

During the shore cited Ta-month period, the LICALA installation

provided

photograoh. and physica surveillance coverage of

the back

ot the bistal installation and its warden ind

This coverage provided s,12y individual photographs

as nell as

surveillanes and observation reports.

These

reports included daily,

verily, and monthly summaries

niactivities,

soni-monthly attendance renorts (of FoStEAl

various special roports,

personnelot tarrets sclected by

and special intensive

Contare

It should ba

mated that the bichle basehouse allois Statten Mexico Cliy

the midt to personnel durits thoir o feduty

CCCA! CAL 10085.

The Localla installation has become

the most valuailo

of thie baschouses, not only brealise oi

1. піт: 0'

vantage moint nut also boraise ol the perceptiremess

His serveillane reports have frequently civen

siont into personal associations anon! th

cratial personnel and have enabled ts to introduce ricater

rosibility and c'tectironess iuro the entire LIlITY ceration.

ITchant reporting bos the creatost rattive pperational

male since it prorides row material ior use in tarit

idleition.. Finalls, the LICAll

is ocrasiomily user

mopert or larious

technical operatioos conducted fron

LEad complex.

P. Smart Of Fired Paschruse

diertiveness

The FiNe! LISTY bascholos CHIMICO, LICiLLi, and LILYRIC)

provided approsimately

,26i indivalual praves ol oporational

photographs during the linenth period revieved above.

photographie enverher, linked with the phasical surveillance

reports prepared by

each basehouse, has

proven to be a most

relinhle and viable tool to:

---

## Page 148

1.

Following the

personnel and

in renous enployces.

daily comings aud points of luStill

their visitors i

confirminy the identities oi sosalil staffers and

(sore of whom are iiizy citizens).

3.

Ascertaining and verifying the rciative rani and

position as well

as indirating the

specific intelligence

service condiction of various FASTEil officers.

4.

Providing retalien reporting on the movement and habit

patterns

selected targets of suecial interest.

Providing phosteal incilities for the support of

various operational, technical, and surroillance operaticas.

c. The mobile Photographic Unit

1.

During the period under review, the LIENTRAl Mobile

mhotographic unit covered di

horamphic assignments in

support it Mexico city station's distine, penund three days

Conmnist Party operations.

An arerage oi tho lo

is spent on each

assigned

target, sially rotating the tire

oi day the coverage is provided.

The LINTRAP operators,

L. IEMPTY-10

and -ll.

have consistently turned in i useful

and excellent quality photographic prodict.

In addition, riile not on an assigarent, both operators

have regularly assigned duties.

LIE0:Y-10 has the responsi-

bility for obtaining,

renewing,

and sorricing most of the

Station's accommodation addresses.

The addresses are

serviced thire times a week.

LISWTY-11 has been serving

part-tine

for the past year

as the sorruth nemoer of the

LIEMBRICE surveillance team

and has periormed well in this.

capacity.

D.

Raymond H. GOREND: - LINDTY Principal irent

During the period under

review, Raymond B. @EXeNDs continued in

his role as the Project LIEUPTY principal agent.

as the dull-time cut-out to the LIMITED, LILYRIC, and LICALLA

baschouses and bore the first echelon agent handling responsibility

for the related porsontol.

In addition. CBEND:: continued to

bear the contact and handling responsibilities for the operator

of the LIBITY chotgraphic developing/processiny laboratory,

GaRiNDi's overall operational assigument involved

if ters*jo cinestine cretinos per cred. to addition to nis

meetings with the LInITY Project case Diffcer.

It should also

ve noted that GERIND: made numerous and essential contributions

to the sensitive JiROP operation

and assisted the Station grestly

with his detailed area inowledge

to make independent investigations and neiccborhoed checks.

SECRET

---

## Page 149

14-00000

SECRET

issisted the Station in its MiRavEl arogran.

is a part oi the

Station's effort to orcaden

GRIND's horizons and to ake bette

adiantage of his capabilities, Ga-aar las made the handling

oilicer for iRF:IN-3 under close case oilicer supervision.

Similar tasks are envisioned for GuilDe in the fiture--agent

handling as well as the spotting and assessment of operational

leads.

These tasks are all assigned with due regard for

GRINDE's primary responsibilities, with the ain of getting the

optimun use out of a capaule and experienced fiold contract

agent.

l. Gerall Biectiveness

each individual operational component of the

As outlined aboverth the exception os the phased-out LITTED

contributed regularly and significantly to the

iulfill-

ment oi Sintion Mexico Citr's operational procran.

Sased on the

excellent performance ol froiret personnel and the

contributions oi this Proiect, the Station strongly

that this Project be continued during the forthconing

projort year

as an essential elment oi the Station's operational

support apparatus.

4.

PROBLINS AND SECUrITY

During the Project

year under review there were no known incidents

which adversely aifected the security of Proscot LInuTY or the

related personnel.

The termination of LIN'PTY- caused no problems

nor did the construction of a maid's room on the rooi of the LICALLA

installation, adjacent to LIENPlY-g's pieto point.

There is no

indication that FJSTEAL personnel had any suspicions about the

construction work.

The exposure of & LIb!BRICk surre:llance

vehicle (see MiNICO CITY S253,

28 Fehrary 1919) caused monentary

concern because the vehicle had been bought from a dealer where

a part-time

job.

Along with all other employees

ot the auto dealer, LIDOTY-? was questioned about the purchaser

of the

car.

While

LILInTY-" was worried vecause he knew

purchaser

the

of the car and vas able

to guess what had happened,

investigation was dropped and the case closed without any

adverse

effert

On LIENPTY-y or the LICAll basehouse.

..

LLA ISON IND INTSR-AGENCY CLORDINATION

Not applicable to Project I lENTY.

6. PLANS

The changes made in the period

under reriew have been largely

techuical.

ihe exception ot a continued expansion of

---

## Page 150

- SEEZE

non-LIt!Ti-oriented operaticial actirity by GiRla:, there are

no signifirant operational chances contesplated.

LIAMPTY iS

a protect designed to support the Station's ROTOP progran and

is useful only as long as

it suprorts that program

ellectively.

The station believes that the support has been eftective, and

that the product of the operation is valuable. Cocastonal miner

changes will undoubtedly be made in response to specidic

requirements and to continual efforts torard improvement, but

continuing emphasis

on the FISTil target ior the loreseenble

Cuture

ArOnK

other thines,

essentially

that the LEfTY Project, in

its present fors, mill continue to be a necessary part

of the Station's program.

B. No need for expansion,

in terus ol personnel or lacilities,

is forescen:

but costs

will parabir clan slowig but steadil!

to permit

salary increases and

to icep up with the rising cost

or living

as it alierts utilitios and sutplies.

hey lncement of

vehicle which ins tot foresen in the prorios

crocit cline, as this to cricially trilied by the slatton

to corer the purind endin

Tie in Elitt.

The corrent

te being critton on thi

tho

relaid

11r6

i mart coplaced in a 18t

that Bo farther replace:

silt in moorssary in the incin

sorailr

:. S0223

alOud D. 90, 551

Starten

rohis proct spendint for

With nortient receipts andor cord Vicariona vose Sumitled ba

ser-sontily accountines

Raymond to Guido: do the coation inance micer dia the trogret

case ollect cor all LanTY troves corenditures nade in the

It le stanated that apprositely thore hours of case

piticer ind docht hours of amirst tino is required con veei

to mullill the overation!, admisiratile, and analytical

rentlements

this project.

This likele does not include tie

40 Hour-wel put in regularly ly Rayaond li. GraD:)

i.

i1in- It is sorrested toot Protet LIMPTY le agpres

in

t: 170?

amount

ei 38, did dollars cer fo mid (this tirre

reprisents roughly a l0 percent

recrease tron the arount

programmed

the previous Protect rear).

While no larro

expenditures are anticipated

10: 1h

replacement of riotographic

eaiiment. durin

the

dorthconans period, inflation zy result

in risin'oost

of rtilities and supplies, and salary incrrases

be: pranted

as

indicated anose.

retailed breakdon of

Project

exeenditures for fy lot, 1oid and 1071 follows.

SEC.

---

## Page 151

FY 192

SALARTES

Raymond H. GiRiND: (P/N)

LIMNTY-4 (photo processor)

$

LIVAUTY-9 (LICALIA)

LIFNPTY-10 (LIENTRAP)

LILMMTY-11

(LINTRAP)

LIINPTY-13 (LILYRIC)

LIYLPTY-14 (LILYRIC)

LIRDTY-2i (LILYKIC)

LISIIPTY-2I (LILYNIC)

LINDTY-÷ (LIMITED; Termination

payment)

Christmas bonuses

contingenry for possiblo

alary Increas

:i,200

2,400

4,320

4,224

?, lil'i

1,536

1,821

€7?

1, 28

2, 70t

SUB-TOTAL

suo

$31.210

REAL ESTATE

GOR NDE Dark Room Rent

("EXI 151)

LICATLA (MAXI 0.3)

1.U.YR IC (NEXI 132)

S/Il Ulilities

SUE-TOTAL

$

9.0

1.205

1,000

$:, 008

VAHICLES

NN-2 Di. maintenance

MY-2823 ma intenance

Purchase

new MV and

maintenance

SUB-TOTAL

400

1i00

1, 000

$. 5,000

EQUIPMENT

$

?00

OPERATICNAL IXPENSAS

"urchase of film; rental oi

post office accomodation boxes;

rental oi vehicles; contingency

fund

$ 1,000

TOTAL

SEGIC

FY 1070

$

2,100

1, 20

4,22,4

2, 1:34;

,1!2

612

1,728

2, Ti0

2,000

sio, 080

* 20

$ i, 188

FY 1971

$

ii, 500

2,100

4,320

4,224

?, 130

672

1,728

-0-1

2,140

'1, 000)

$12,080

900

1,218

2, 200

$ 6,298

-0-

800

100

$ 1,200

$

-0-

1,000

100

$ 1,000

$

500

$

500

$ 1,000

$38,970

$ 1,000

$41,570

---

## Page 152

as in the past

receipts or certifications.

Thore will ve no reguirenonts lor.

¡orciga currency beyond the Station's campuility to provide.

&. SNURGENCY CONDITIONS

In the event of ciril disorders or the evolution of complete

eniorced neutrality on

the part of the host reverment, it 16

that regular operational contact could be maintained

with the majority

or the netive. LIauTY agents via Raymond 1.

GERINDE Of in his disence, Oliver G. SCANTI.ING.

B. In the most unlitoly event of the establishment of a regine

limited

contact could probably br

with the miority de tho dotive projed agents.

Hererer,

linder these cucunstanc's,

it is highly moondle that

the activities of this prosect

would be somewhat curtailed.

revised and unnated onerconct contact plans tor use with

PRYMONd M. GONEND: And CUinor G. SCANTLING are on cile 1n

Stacion and al Meadorariors (see Murdosa, dated ll leoruary

1v66 and HAMA-20262, dated & february 1066).

50-6-74111

---

## Page 153

SECRET

TO:

NOTIFICATION OF PROJECT APPROVAL ACTION

TO FIELD FINANCE OFFICER

onser of station saver seties hey

PROJECT:

• FAN:

LEMPTY

1235-2009 .

TYPE OF ACTION:

SoTHER ledistreludie of funds 3lo00 kanofered

do Funds: Riailable fre Ngo use

you the purch dise.

_RENEWAL

_EXTENSION

_AMENDMENT

_TERMINATION AND DATE

PERIOD OF ACTION:

FISCAL YEAR PROJECT APPROVAL: FY

64

-

THIS ACTION:

PREVIOUS ACTION:

43520

TOTAL FISCAL YEAR PROJECT

APPROVAL:

43520

AMOUNT

FY.

FUNDS AVAILABLE FOR HQS USE: .

4200

FUNDS AVAILABLE FOR FIELD USE:*

:39320

*TO BE

USED AS A

GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

file

50-6.74

SECRET

(When Filled In)

---

## Page 154

14-00000

PATRA DRSCCIMATION

ART PUPIRITO

I7I88U80

•BLOTTED

"SIPIND ATISSAGE

TOTAL CORES

SECRET

GROLDI

t857. 108s rons so taste

(When filled In)

84T10880x01.80

HODUCTION OF THIS COOT PROMIBITEO

• Yes @ No

ABBIPY PO PILE NO.

REF TO PILE NO....

PILE RIO CRET PO

•TING ANT OR IRTIALS

10

DERTROY O810

ACTION

WHS

9k0

SECRET 11ZZIZ MAR 69 CITE MEXICO CITY

9439.

DIRECTOR

Mexill HA:59 IN 1 1 84 1

LIENPTY

• 1. PREPARATION LIEMPTY PROJECT RENEWAL REQUEST DELAYED DUE

RIZZUTO'S RECENT TDY HQS. WILL POUCH IS MARCH,.

2. FILE

50-6-74/1.

SECRET

i.

AR

ES COPY

SECRET

111%a168

50-6-7411

---

## Page 155

4-00000

DISPATCH

CLASSIOKATION

BUCRBT

Chlot of Statios, Mextoo City,

INTO.

(2d01, Hestora Eniophato DITIB10S

SUBALT

ACTION QUIRIO. AUERINES

saferenca: Boat Diapetch Ho.6169, 29 Horenber 1958

PROCISSING ACTION

MAPRIO FOR MELTING

NO MOLLING MQUIRCO

OMiT QUALITUD DISA

аквонм

ins 1n & routina seninder that the LIMPTY Profoct Beneral

fOr TY I9T0 v1ll bo deis st Haadquarteso 14, Masca 1969.

SOFTIN H. DATICONE

Distributions

05180 & 1 - 003/Mtesdeo C1ty

CROSS REFERENCE 1O

GS COPY

RI-1

1і си

AR

CR-1

<

53

USE PREVIOUS EDITION.

MFG. 1.88

DISPATCH SYMBOL AND NUMBER

B24-16984

CLASSIFICATION

OFFICE

IE/1

OFFiCE SYMBOL

-

WH/1

DAIE & 8 JAN 1989

9 Jamary 1969

HOS FILE NUMBER

15026-74/2

ORiGINATING

Al Malone

COORDIMATING

DATE

OFFICERS MAME

SXT.

4167

RELEASING

DATE

OFFICERS SIGNATURE

9 Tan. 16.9

1401

DISPATCH

---

## Page 156

14-00000

DISPATCH

CRASMITAHON

SECRET

PROCASSING ACTION

MARKED FOR MIDNITIE

Chief of Station, Mexico Clty

DITO.

ONLY QUALIFITO DESK

CAM JUDGE INDEXING

Chief, Western Hemisphere Divialon

SUNRIT

[Approval of Project LIEMPTY

ALTAN REQUIRFO. DIMLINES

MICROFILM

Project LIEMPTY has been approved for the period l December

1967 through 30 June 1969 in the amount of $69,725. Of the total,

$36,205 would be disbursed in FY 1968, and $43,520 in PY 1969,

representing no change in the funding you requested. $550

i8 re

tained for Headquarters use during FY 1968, and $200 (for photo

graphic equipment) 1n FY 1969.

TH B

Theresa H. BACHARDY

Distribution:

Or18. 8 1 - COS, Mexico CIty

CROSS REFERENCE TO

-S COPY

CS COPY

DISPATCH SYMBOL AND MUMBER

50-6-7411

TRATE 2 3 MAY 1968

ЮЛИ#-16419

CLASSITICATION

21 May 1968

HOS FILE NUMBER

SECRET

50-6-74/1

ORIGINATING

OFFICE

WH/1

OFFICER

Perkins

rC

COORDINATING

Niferscis

EST.

6954

OFFICE SYMBOL

DAlE,

OFFICER'S MAME

RI

CHRONO

AX PHEE

ABSTENCE

OFFICE SYMBOL

C/WH/1

roem

53

USE PREVIOUS COITION.

NFE 1.58

RELEASING

OFFICERS SIGNATURE

DAIL

21 May 681

11801

Cut i detentens

J. Kaufman

DISPATCH

---

## Page 157

14-00000

SECRET

(When Filled In)

Date

NOTIFICATION OF PROJECT APPROVAL ACTION

TO FIELD FINANCE OFFICER

TO:

INFO: -

PROJECT:

FAN: -

TYPE OF ACTION:

Chief of Station (BaseT..

L'ENETI

NEW

_RENEWAL

_EXTENSION

AMENDMENT

TERMINATION AND DATE

PERIOD OF ACTION:

• FISCAL YEAR PROJECT APPROVAL: PY

THIS ACTION:

PREVIOUS ACTION:

TOTAL FISCAL YEAR PROJECT

APPROVAL:

FUNDS AVAILABLE FOR HQS USE:

FUNDS AVAILABLE FOR FIELD USE:*

AMOUNT/

FY

*TO BE USED AS A GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

SECRET

(when Filied In)

---

## Page 158

14-00000

DISPATCH

Chief, MH Division

Chief, SB Division

SUBACT

Chset of station, stoxico est

LISHPTY Project Renewal Fequest

ACTICS FIQUIRTO. RIARENES

FROCESSING ACTION

MARKEO FOR DEDEXIAG

MO INDEXING REQUIRED

ONLY QUALIFILO DESK

CAN JUDGE INDEXING

MICROFILM

Forwarded herewith and under separate cover by split transmission

is a request for the renewal of Project LIFPTY for the period

I December 1967 through 30 November 1968. Funds in the amount of

$13,520 are requested for the project year; $26,205 to be alloted

tn FY 1968 and $17, 315 10 FY 1969.

RECORDS OFFICER SIAMP

37 1s

authorised: ..

Sigiod:

Eria trinis

/caren: 1. 14.3300

for Willard C. CURTIS

Noto:

It costraector

cilo

reasons

and coordinato

11 appropriate.

Attachment:

A - Project Renewal Request,

right side (herewith)

B - Project Renewal Request,

left side (under separate cover)

Distibution:

- c/MI,

watts. A & i

3 - C/SB,

w/atts. A *E

LATI

ROSS REFERENCE TO

DISPATCH STRESUX AYO NUMBER

IDB1-33455

CLASSIFICATION

SECRITI

DATE

5c-6-74/1

8 November 1967

INOS HUE MUMBER

50-6-74/1

---

## Page 159

30 JAN i908

MEMORANDUN FOR: Assistant Deputy Director Plans

SUBJECT: Supplementary Appropriation for LIEMPTY

It is requested that the figures in the attached

field project renewal be amended and that an additional

$26,205 be approved to cover the period 1 December 1968

through 30 June 1969 in order to carry the LIEMPTY Project

to the end of a fiscal year.

This sum is identical to that

requested for a similar period in 1968 as there is no

present justification for projecting any change in th

financial

requirements.

The supplement would bring the

cost of LIEMPTY to a total of $69,725 for 19 months.

Chief,

Western Henisphere Division

RECORDS OFFICER STAMP

Tho follaring cetlon

authoris: de

S12n0d:

Noto:

Te arder,

cite

ranteed ous coordinate

it appcopriato.

---

## Page 160

SECRE!

MEMORANDUM FOR: Deputy Director for Plans

SUBJECT

: LIEMPTY Project Renewal

1.

Renewal of Project LIEMPTY for the period 1 Decem

ber 1967 through 30 November 1968 in the amount of $13,520

is hereby requested. $26,205 would be spent in FY 1968 and

$17,315 In FY 1969.

The project was budgeted for $45,000 for

FY 1968; funds are available within the Division.

Estimated

costs for the coming project year are a little less than the

amount programmed for the previous year and a little more

than what was actually disbursed.

3.

LIEMPTY is designed to provide physical surveil-

lance of the Soviet Embassy in Mexico City. It covers three

nearby properties (two in front of the Embassy's sole entrance

and one behind the garden) fron which visual and photographic

surveillance are carricd out by experienced personnel.

The

project also covers a darkroom where a technician processes

the photographs.

In addition to collecting this basic informa-

tion on a primary target, certain of the LIEMPTY personnel

are also available for miscellaneous support tasks, such

as

servicing postal boxes, and running fixed and moving surveil-

lances.

The photo truck which comes under the project is

used on other targets as well, such as CP members, satellite

embassies, and Latin American exiles.

One of the basehouses

is also used as a radio dispatch point for the LIEMBRICE sur-

veillance team, but this function has been minimized during

the past year in an effort to prevent Soviet interception of

the signal.

The Mexican desk asked the appropriate opera-

tional component of SB Division for specific comment on the

value of LIEIPTY, and received the following:

"This rather unique operation has

unquestionably made a major contribu-

Mexico Station.

CRETT

treated iran 8510a8:16

C0M9?791198 211

SECRET C

---

## Page 161

14-00000

SECRET

=200

third natlonal contacts of the Soviets,

from which

we must select and develop

the access agents so vital to our oper-

ations against the Soviet human target.

LIEMPTY also provides us with a much

clearer picture of the inner relation-

ships and activity patterns within the

Soviet mission itself, which in turn

racilitates effective targeting.

The

CE value of a LIEMPTY type project a.

a monitor of real and potential agent

contacts is of course obvious.

It 1s

important to note that LIEMPTY is not,

as might be the case in stations of

lesser overall capability, a simple

case of photography (or observation)

for the record.

Rather it is an import-

ant facet of a concerted high priority

effort to get at and recruit individual

Sóviets."

b.

Station reporting has been in a

similar vein.

1 or a one sedan to co tad

situ-

graphs produced and numbers of pages of surveillance notes.

It is clear that the FBI is an interested customer and they

have received from LIENPTY a great many reports

on American

callers at the Soviet Embassy, and valuable support to double

agent operations.

During a conversation on 8 December 1967, the

officer who heads the station's SB section told the branch

that LIENPTY is basic and essential to all of his branch's

operational planning, that he "grabs the LIEUPTY material

first thing in the morning and studies it for leads, evidence

of which Soviet officers have been in the Embassy ana which

GRU by their associates, their activity patterns and the cars

chey drive.

(The I,S.

The KGB, GRU and regular diplomatic groups seldom

ross Jines but stay within their own tight groups. When

SECRET

---

## Page 162

14-00000

SECRET

Rita 30,

- 3-

double

agents are turned over from one case officer. to a new

one,

known to

them only in allas, we

through

surverlance

and photographs,

establish the true

abrish the true dentity

of the new case

officer, as was done in the case of AFGIMMICK

in the spring of 1967.

In assessing the security of the operation, the

station assumes that the Soviets rcalize that they are being

watched, as was. evidenced by a Soviet officer's trying to

shield an FBI-directed walk-in from observation.

There have

been rumors that anyone entering the Soviet Embassy is photo-

graphed, but no allegations that the Americans are doing it

have come to our attention; the probable assumption is that

the Nexicans are doing this.

A former source who lives in

the neighborhood was asked on several occasions what he knew

about LIEUPTY/6, one of the safchousekeepers,

and the Soviets

have said they

think he is watching them.

On the security of

the LICILLA safehouse there is a difference of opinion.

GERENDE, the outside case officer, thinks

the Soviets are

aware that they are being observed from this post,

but station

disagrecs and produces good justification for its views, cit-

ing the fact that the above-mentioned FBI walk-in was not

shielded when led into the back garden which LICALLA overlooks.

We have no evidence that Soviet interest is any threat to the

operation; rather it may be assumed that they accept the sur-

veillance as a fact of life.

uds. Estelen

be 1a13. 2000

Chief,

Western Hemisphere Division

SECRET

---

## Page 163

14-00000

satiet

REQUEST FOR PROJECT RENEWAL

PROJECT

LIENTTY

STATION

MEXICO CITY

One or sArroyise i Curtes

"ti?

13P.78

580567

50-6-7411

3ESNE

S/CATT. 24 HMMA-53955_ NSHE HATT. NIHMMA-33455

---

## Page 164

STOREY, MARE%

PROJECT LIEMPTY

REQUEST FOR RENEWAL

1.

CURRENT OBJECTIVES

• The overall objective of Project LialPty,

now in its tenth

year of existence,

1s to collect operational information on the

FISTEAL installation, Its personnel and visitors, as well as

related targets of opportunity through stationary/molile photo-

graphic and physical surveillance mechanisms. Corollary

objectives which are to be fulfilled through use of the LIEMPTY

installations, mechanisms and personnel are as follow:

To provide detailed operational information pertaining

dally movements and activitles of the FISTEAL

personnel, particularly those individuals of Intelligence

interest,

as well as information on the FJSTEAL physical

plant and visitors to the premises.

2. To collect operatioual information on persons associated

with FJSTFAL persoonel and on individuals known or suspected

to have connections with the FJSTEAL intelligence services

or other hostile groups which are inimical to the interests

of INFORT.

To provide operational support, counter survelllance

other protective services to WOFIRM personnel and

operations, as may be levied upon the Station of as may be

deemed necessary.

B.

The above objectives are to be fulfilled through continued

maintenance and

exploitation of the LIMITED, LILYRIC and LICALLA

basehouses,

the LIENTRAP mobile unit, and the services of long-

time contract agent, Raymond H. GERENDE.

These objectives are

in consonance with

operational directives and Headquarters

requirements as received by Station Mexico City.

Throughout the Project year under review, Project LIEMPTY

continued to

contribute directly and significantly to the fulfil-

of Station and Headquarters' requests and requirements for

coverage of various

targets faling within the above cited frame-

During the project year Project LIEMPTY provided nearly

ill of the operational photorraphs and physical surveillance

reports used in Mexico City Station's operations targeted agains

the FJSTEAL installation and personnel.

Specific examples of the

LIESPTY Project's progress and contributions will be found in

Section 3 below (EFFECTIVENESS) •

---

## Page 165

4-00000

citalis

- 2 -

2.

CHANGES

Operational - Sioce the institution of the changes described

to the previous renewal request, it has not been found neces

sary or destrable to make further major changes.

minor changes in operational technique have been made in an

effort to obtain continued improvement in the finished product:

• LIEMPTY-9's proven effectiveness as an observer (se

aragraph 3 A (3) below) has enabled us to institute

system of special, coverage on specific FJSTEAL personnel

of intorest, or special coverage of specific time periods

The purpose is to permit the Station to gain

greater insights into. the sctivities and personal associations

of certain individuals, or in overall activities during a

No change in LIEMPTY-9's overall

working hours has been made; rather, flexibility has been

Introduced.

Flexibility has also been introduced into the handling

Of LIENTRAP,

which is now working more closely with the

LIEMBRACE team in order to take greater advantage of targets

of opportunity.

To this end, LIEMBRACE-l has been placed

in direct contact with LIENTRAP, relieving Raymond H. GERENDE

of this responsibility and permitting GERINDE to devote time

to MHRAVEL activity (see sub-paragraph (3) below).

In September and October 1967 GERENDE was employed by

the Mexican SHRIVEL committee.

This position gave him direct

access to FJSTEll and other delegationg of interest, and

supplemented the Station's MHRAVEL progral.

expected

that GERENDE will obtain MIRAVEL employment again in 1968.

Financial - LISUPTi-4 and -Il were granted salary increases

offective 1 July 1967.

Memoranda of Oral Commitment were for-

warded to Headquarters in HIMA-32584 and HMMA-32585, 20 July

LEAPTY here san

There was no change in the salaries of the remaining

C. Personnel - None.

3. EFFECTIVENESS

22213

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## Page 166

14-0000

SECRET KAESS

-3 -

• A. Fixed Basehouses

I. LIMITED

Throughout the past project year the LIMITED installations

provided daily photographic coverage

surveillance team. Due to the stringent security measures

Instituted in the

immediate vicinity of the FJSTEAL instal.

lation by local security forces, normal stake-outs by this

unilateral team are precluded.

However, with the radio

dispatching support from the LIMITED radio base, which

allowg the LIEMBRACE team to work fron adjacent

secure surveillance coverage of this target can be provided.

During the 12-month period from 1 November 1966 through

31 October 1967,

the LIMITED base provided 1,834 frames of

operational photographs.

In addition, the LIMITED base

provided over 2,500 pages of physical surveillance reports.

2. LILYRIC

During the project year under review, the LilyRIC installation

provided extensive photographic and fixed visual surveillance

of the front of the FISTEAl installation.

provided the majority of the operational photographs produced

by the LIEMPTY project.

During the 12-month period cited

in the LIMITED section

abore, the LILYRIC base provided

12,137 operational photographs and several thousand pages

physical surveillance reports covering the daily move-

ments of all FJSTEAL OffiCerS.

3. LICALLA

During the above cited 12-nonth period, the LICALLA instal-

provided photograph: and physical surveillance

coverage of the back of the FISTEAL installation and its

Th's coverage provided 4,917 indi-

Vidual photographs as well. as numerous surveillance and

observation reports.

It stould be noted that the LICALLA

base allows Station Mexico City to observe the FJSTEAL

personnel during their off-duty and recreational hours.

The LICALLA installation his become the most valuable of the

three, not only. because of its unique vantage point but also

because of the perceptiveness of LIENPTY-9.

lance reports have frequently given us valuable insight

into personal associations among the FJSTEAL personnel and

have enabled us to introdue greater flexibility and

eifectiveness into the entire LIEMPTY operation.

SECRET

---

## Page 167

14-00000

- 4.

B. Summary of Fixed Bisehouse kiffectiveness

The fixed LIESPTY basehouses (LIMITED, LICALLA and LILYRIC)

provided approximately lo,oos individual frames of oper-

stional photographs during the 12-month period of the past

project year:

This photographic coverage, linked with

physical

surveillance

reports prepared by

each basehouse,

has proven to be a most reliable and viable tool for:

1.

ollowing the daily comings and goings of

'JSTML personnel and indigenous employees.

2.

Confirming the identities of FJSTEAL staffers

and their visitors (sone of whom are NOLADY citizeng).

Ascertaining and verifying the relative rank and

position as

well as indicating the

specific intelligence

service connection of various FJSTEAL officers.

Providing detailed reporting on the movement and

habit patterns of selected targets of special interest.

5. Providing physical facilities for the support of

various operational, technical and

surveillance

operations.

C. The Mobile Photographic Unit

1.

Throughout the period under review, the LIENTRAP mobile

photographic support unit mas regularly exploited and used

but

also for PBRUMEN and Commurist Party operations as

as

the JMTIGER program.

Over

2,000 operational photographs were

provided.

In addition, the LIENTRAP personnel and unit

was used regularly to service and obtain various postal

accomodation boxes used by Mexico City, Headquarters and

other field stations.

D.

Raymond H. GERSNDE - LIEAPTY Principal, Agent

During the period under reriew, with the exception of short

vacation periods

Raymond H. GERENDE, continued in his role

GERENDE operated

basehouses and bore the first echelon agent handling respon-

Sibility for the related personnel.

In addition, GERENDE

---

## Page 168

SElL DONK

= =

continued to bear the contact and handling responsibilities

of the LIENTRAP unit (until mid-August 1967 - see paragraph

2 A (2) above) and for the operator of the LIEMPTY photo

graphic developing/processing laboratory, LIENPTY-1.

GERENDE's overall operatioral assignment

involved at least

meetings with

m2e Clande sita the LIESPTY Frosect case officer.

also be noted

contributions

that GERENDE made numerous and essential

to the sensitive AUROD operation and

the Station greatly with his detajled area knowledge in

investigations

program.

ne appriached, developed and eventually

attempted to recruit an agent

for use in PBRUMEN operations.

E. Overall Effectiveness

As outlined above, each incividual operational component

of the LIEMPTY Project contributed regularly and significantly

to the fulfillment of Station Mexico City's operational

on a that the project otted date ne ton.

coming project year as an essential element of the Station's

operational support apparatus.

4. PROBLEMS AND SECURITY

During the project year under review there were no known inci

dents which adversely affected the security of Project LIEMPTY

or the related personnel.

5. LIAISON AND INTER-AGENCY COORDINATION

Not applicable to Project LIEMPTY.

6. PLANS

A.

As noted above, the technical and operational changes

made

in

the past year have been effective and have resulted

in a product which is as closely geared to operational

requirements as possible.

While no major changes are

contemplated, every effort will be made to continue to

improve

the product, including greater use of GERENDE as

an independent irvestigative asset,

and as a spotter and

assessor

of selected agent candidates.

Such utilization

of GERINDE will be kept compartmented from other personnel

of the LIEMPTY project and will normally be handled by

GERENDE in operational alias.

23

---

## Page 169

4-00000

The LIENTRUe vebicle has been replaced, and no major

changes in personnel or raterial are contemplated.

oX LIMPTY: personnel will le reviewed, and it is foreseen

the rising cost of living vill compel

us to recommond salary

increases for certain of tle agents who have not received

raises in some time.

COSTS

'Past Project Year- PrOJeCt LIEMPTY was previously approved

for the poriod 1 December 1966 through 30 November 1967 for the

amount of 45,000 U.S. currency, Station records indicate that

through 31 October 1967, Project LIEMPTY has expended 37,040 1n

the field.

•It. is estimated that a total of 40

130 will be expended

In the entire project year.

Bi-weekly accountings with pertinent

receipts and/or certifications were submitted by Raymond H. GERENDE

to the Station finance officer via the project case officer for all

LIEMPTY Project expenditures made in the field.

It is estimated

that approximately 5 hours of case officer and 10 hours of analyst

time is required each week to julfill the operational, administrative

and analytical requirements of this project.

(This figure doos not

include the 40 hour-week put in regularly by Raymond H. GERINDE).

B.

During Project Year - It is requested that Project LIEMPTY be

approved

in

the amount of 43,520 U.S. currency for the period l

December 1967 through 30 November 1968 (this figure represents &

slight decrease from the amount programmed for the previous project

year).

While no large expenditures are anticipated for the replace-

ment of photographic equipment during the forthcoming period, an

increase in the rental af

the various basehouses may be encountered

as well as the above-cited expectation of salary increases.

Of the

amount requested above,

26,205 dollars should be allowed for fiscal

year

1968

and 17,315 dollars for fiscal year 1969.

A detailod break-

down of the project expenditure by category and by fiscal year follows:

SALARIES (INCLUDING CHRISTMAS BONUS)

FY 68

FY 69

LIEMPTY-4 (photo lab)...

IN. LIEMPTY-6 LIMITED basehouse

keeper)...,

' ITEMPTY-S (LICALLA basehousa

keepter) ...........

LIEMPTY-10 (LIENTRAP" operator

LLTENPTY-11 (LIENTRAP operator)..

L1EWPTY-13 (Cut-out to LILYRIC.

ÉLIEMPTY-14 (LILYRIC basehouse

keeper)..........

LLIEMPTY-27 (LILYRIC operator).

Contingency for possible

salary increases..

TOTALS

3,848

4, 160

1, 576

2, 701

1,570

$30,020

$18,475

•, U

32,02

$11,545

,00

12, 54

SEEM

---

## Page 170

4-00000

8.

-7.

FY 69.

VEHICLE MAINTENANCE

2606 (GERENDE)

NV-2004 (LIENTRAP)

2823

REAL ESTATE (RENT, UTILITIES)

LILYRIC.

LIMITED.

LICALLA..

Photo Lab.

$1,000

4,000

$2,000

$1,165

$ 835

• $3,200

2,000

1,800

1,000

$8,000

$1,665

$3, 335

EQUIPMENT

Maintenanco and replacement of

photographic equipment......... $ 500

OPERATIONAL EXPENSES

Purchase of f1lm; rental of

post office

accomodation boxes;

rental of

fund....

vehicles;

contingeucy

.._$1,000

TOTALS...

...$13,530

$ 300

200

$ 600

$26,205

§ 100

217, 315

receipts or certifications.

EMERGENCY CONDITIONS

In the event of civil disorders or the evolution of complete

enforced neutrality on the part of the host government, it is

now belleved that regular operational contact could be maintained

with the majority of the active LIMPTY agents via Raymond i.

GERENDE or in his absence, Oliver G. SCANTLING.

B. In the most unlikely event of the establishment of a regime

openly hostile to LNFORT, limited contact could probably be

maintained with the majority of the active project agents.

lowever, under the circumstances described above,

it is highly

probable that the activities of this project rould be somewhat

curtailed.

322PA

---

## Page 171

14-00000

SAGRET/VCOK

-8=

Revised and

SISTERIA

---

## Page 172

CASSINHIALIOY

DISPATCH

SSCRET

chief of station,

Maxtoo Clty

пота

HAUN

Chief, MI DIvlBIon

REFIT

Roneval of LIEMPTY

ATTOM PROLERED: AFTERMIS

PROCESSEL ACLION

MATALONE MOLLING

ONE QUALLINO DISK

(IN MON INDIANE

Ials 18 a reminder that LIEMPTY Mill bo up 1OT

senevIl on 1 Decembor. Please try to lot us bave your

draft at loast a nonth beforo that tina.

THB

ThereBa H. BACHARDY

Distribution:

3 - COS, Hexico CIty

c3 0000

CROSS REFERENCE TO

RI

Chrono

50-6-74/1

DISPATUM JYM3OL AND NUMBER

DASE

HNH-15759

CLASSIFICAIION

SECRET

1 September 1967

I HaS FILE NUMBER

50-8-74/1

WH 3

OffiCER

N. Perkins

=

- TRIGINATINE

TYPIST

saS

COCCDINATING

DINE SUSCL

DATE

Niterkus

OFFHERS MAHE

EXT.

6954

153:507 +

DATE

AC.WH.1

I0M 53 USE PREVIOUSEDITION.

MFG 1-68

RESISING

J. Fisherf

DISPATCH

---

## Page 173

DISPATCH

SECKET

10

Chief of Statton, Mexico CIty

iNFo

TROU

Chicf, WH Diviston

SUBIECT

O LIENPTY Project Renewal

ACTION REQUIRED

REFERENCET

Reference: HMMA-30403

MARKED SOM SOLAR

CAN JOGE INUL RIOT,

MICROFILM

1. The LIEMPTY Project was renewed on 13 January

1967 for the perlod l December 1966 through 30 November

1967 for a total of $45,000.

01 this, $29,020 18 for

FY 1967 and $15,980 18 fOr PY 1968.

2. At the Station's conventence, Headquarters

would appreciate receiving a sketch showing the exact

position of the LILYRIC and LIMITED Basehouses in

We would also like

Unusual or at requested entane the ne

Basehouses.

Elsie I, SCALETTI

Distribution:

Orig & 1 - COS, Mexico City

GROSS REFERERCE TO

CS7.4

RI

Chrono

ABSTRACT &

POEM

53

USE PREVIOUS EDITION.

МРО 8-00

50-6-74/1

2: 10e 1037

DISPATCH SYUBOR ARO NUMBER

НMМ#-15157

LLISTIFICATION

DATE

18 January 1967

MOS FILE NUMBER

50-6-74/1

OFFICE

WH/1

OFFICE STUBC

*it'

OFFICE SYMBOL

C/WHl/1

ORIGINATING

OFFIGER

TYPIST

C. Bustos-Videla

COORDINATING

пДо

6954

DATE

OFFICERS NAME

.il

CATE

RELEASING

OFFICES SOUTURE S

W. J. Raufma

DISPATCH

---

## Page 174

14-00000

SECRET

LIBMPTY

ISE DEFICIA

DIVISION

WH

ACTION

APPROVAL

MaSHERAL

ANEMOMENT

EXTEMSION

TERMIMATION

ROUTINO OFFICE COMMENTS

= STAFF REVIEW OF FI/CI PROJECT

FUNDE

514:169.

195.000

*PENSION

3634

A*CA

AFPAOLAL

LEVEL

CITISION OR STAFF

поом

339. Area

ALiLAY Ti:

DDP/PG FI-CI

Projects

3 C 93

RECEINTO DIP YE

12 De0

FORBAROTO.

DEADLIME

1313R

2LD70

RETURNTO

HEXIEKING -CONFESENTS

C1/OAS

ces

OTMEN

CONHEAT POR INTERNAL STAFE LISE (DiOS tO do forMerd to lho Dirision)

COMMENTS AND RECOMVENDATIÃNS (TO dO farmard la she Diviaion)

The CI Staff concurs in the renewal of this very

valuable Project.

The Staff stronqly urges the station to

continue its close monitoring of soviot interest in the

Installation buildings and attempts to obtain information on

sensitire project personalities.

The Station should

necessary contingency plans of action to eliminate any

gecurity hazards if it is determined that the Soviets are

intensifying such efforts

and could be getting

"no close"to

the Project installationg, personalities and activities.

CC SENT DIV..

DATE

L6 1:2n 1166

108y 526 use parurous erraria

SECRET

inte

(13.30.401

---

## Page 175

14.00000

SECRET

REQUEST FOR PROJECT RIDIENAL

PROJECT:

Cornelius Lo PAUVION

STATION:

MEXICO CTTY

CHIEF OF STATICLE

....

....a

63 0381

TE ATE +1 6114418-30403

12860546

50.6-74/1

R. SCENTTADHANNA-30403

---

## Page 176

4-00001

RiSHUEST POT MINSHAL

PROVECI LINITY

HERET ONESIVES

A. The orerall objective of Project LIMPlY, now in Its rinth year of exi

Istence, Is to collect operational inforestion on tie italIck Installation,

Its persornel sil pisitors, as well as releted tersets c! opportunity

through statienery/nobile photographic and physical surelllence necharisas.

Corollary objectives which are to le'fulfilled throat use of the LIEUPTY

installatiors, recharisas and personnel are as follow:

Lo to snoriue detalled operational Inornation vertsinina to the

aily norements and activities ot the LIbRIGi persoznel, particularl

those indiridualo of Intolligenco interest, as vell as Information

an the IDATICK physical plant and visitors to the arenises.

2: To callect operational information on persons associated with

LIERICK personnel and on Indirfluals known or susjested to have

connections with the LüticK intelligence services or other hostile

groups itica are inimical to the interests or Lumura.

3. To prride operational support, counter surveillance and/or other

protective services to WOFICT personnel and operations, as say be

levies upon tie Station or as asy be deemed necessari.

Thie ajore cojectives are to be nufillei through continued asintenance

asi exploitation of the LIMITSD, LILYRIC and LICAllA baseduuses, the

nant sobile unit, and the services of lon;-tlae cartreet agent,

Rayaond H. S51D3.

These objectives are in consonance with and represent

patial iul 1llaent o, the following sections of the current Related

Mission Directive (NI) as approved for Station Mexico City:

PRICITY A

section 1,

subsection i

Section 2,

subsections b%e

PRICRITY B

ection l, subsection ‹

cution 2, subsection

C. Throughout the Project year under review, Project LIstrY continued to

contribute sirectly and significantly to the fulfilluent of station and

Headquarters' mquests and requrements for coverage of various targets

falling within the framework of the ruove cited sections of the RAD.

During the last 10 nonths Boject IlPlY proviied the rest asjority of the

operational abotogrephs (approxinately 1ü,000) and pisical surveillence

reports (4, 170) used in Mexico City station's operatios tersettel asainst

---

## Page 177

4-00000

2.

the LIBRICK installation and peracnnel. Specific exnaples of the LIPTY

Project's progress and contributions to the RID will be found ln Section 3

ibelow (IFFECTINEASS).

2. GRANGES.

A.

Operatioral - As noted in the previous Request for Project Reneunl,

the former LINUND property les sold to LINCUSDE, who as per foruel agree-

ment with the Station, demolished the old structure and constructed a new

edifice.

thile it was initially contemplatel to place the LINTED

(LIENPTYs -O and -T) personnel in the new buildini, and to retein the sane,

qual division of vorcload between LYRIC anu LIMMKD, at was later

culued to nove the present LILYRIC basehouse personnel (LIENPTYs-13, -14

-26 and -27) Into the new bade inctead, along with the following ancillary

modifications:

n increase in the hours of both the photo raphic ard physical surveillene

overage proviled fron the new base by the LILYRIC operztors (C800-150.

hours) durin the weekdays and to have the LIMITED base provide

photographic and pijsical curveillence coverage frna 1600-1630 hours

on usekdajs anù fron 0900-1300 hours on weekends. These changes were

dictated by the rollowin; considerations:

1. The new LIMOUSINE building offers a such better vantage point

for both photographic and physical surveillance than does the

present coplex which housen the LILITIC end LIMINaD bases.

Thererore,

the Station "elt that the personnel occupying this

new base should be those possessing the highest technicel skills

and also titose able to provide the cost thorougn ani couplete

coverage. Since the LIMITeD base now hes only one treined

operator while the LILYRIC baschouse hes three, the LILyic group

and a revision or vorkins hours was indicatel.

Because It was epparent that the coverace of the LIMERICK

inctallation would be a lonó-range and continuin, requiresent,

the Statior desired to staff the new bese with personnel of long-

range potential.

LIaIPIY-6, now alnost 60 years oli, does not

posses: this potential; horever, the lulufuc agent corplex

happily corbines experienced personiel sith youthful ajents.

3. Firally, the social and financial status of the Liberto

personnel is ruch more compatible and consistent with the en-

vironsent of the nel building than is that of the LIMITED faelly.

The above-cite: revised work schedule was

initiated in July 196ó end

the actual soresent of the LILnIcs Into the new bese beges in late

Septenber 1965.

---

## Page 178

14-00000

3.

3. Financial - 1.:

istriled revlew of the ther-existin- LImIty deat

salary structure,

seriest agents (LISAPPY: -5,

-9, -1f, anil -1l) vera

¿ranted selaty incases eftective l Inniory 1966. Fortal notifleation

and revisel neroris i: omnl coraituent were forsanied to Rendouarters

with mad-2a,13o, isses 25 January 1966.

of the ô recaining MithEy agents.

There wigs no change in the salaries

C. Personnel

1. During the Pruless geer under review, Llixpiti-6, -9, -13, -14, -26 and

-27 were afforded their initial SSWIRL elaninctions, all with satisfactor

results.

2. LINNPTY-26 was pastel en lA effective 29 November 1965 for use as

a cut-out tu the ltura boschouse (Hali-14177, datei 9 Deceaber 1965).

LIanTi-d has beer soirely used durthö tie past Project jear for the

above-stated purgase.

LIEMPTY-27 WaS gratel an OA On 27 Juls 1966 for use as a part-tize

ZinE rehouse Car (el-21757, deted 1 August 1966).

LIIMTY-?7's heavy mürersity scheiule has thus far precluded ils reguler

use by the Suction, is is

antlelpated that subject will be recularly

employeed after the asi of the present school tere.

Throurhout the perin tier rorlen, each uperationel component of project

Hantry contribute: astirely and concretely to the fulfillnent of tre

operational tasks lorini ca station Mexico City by the lUD and other

directives.

High-ligios of the accomplishaents and the achievements of

each component are cita: below:

A. Fixed Basekruises

1. LINITED

Throughout the jast aroject year (with the change in working hours

noted in parasma: = above), the LIMITSD installation provided daily

photographic corerate and phusical survelllence of the nain sate of

the LIBRICK inscriation.

Ir eddition, the LINTED bese provide:

for a fixed raji: sispetenin station which has uses continually to

support the LIBRAtE surveillance tear.

Due to the strinjent

security reasure: instituted in the imediate vicinity of the LIMIRICK

Installetion by !U'= security forces, nonel steie-outs by this

unilateral tear on precluded.

Mowever, with the radio dispetchis

support fros tle ITiNED radio vase, which allows the LIMBHACE tere to

work froa edjecer: saie ereas, secure surveillance coverage of this

---

## Page 179

target can de provided.

During the genorts period va l Noreader

1965 throus 30 July 22ú6, the MITED buse provide! SaTis frames

of operationsi photo, raphs.

In aditios, the IINTI: lese provided

ovar 1,060 pajes of physical curvolllence reports..

2. LILIATE

Durtre the Froject year unier revier, the WILYRIC instillation

proviied extensive photosmphie and fisei risual surveillance of the

front of the knurIck installation. The ultyRli base not only pna

lied the agority of the operational precisraphs priuced by the listen

project,. hut elso provided the sost detaila? phrsical surelllance

reports. Hirin the l-nonth perlod citei in the LIMITS) section adore,

the LILYRic deso prontleà over 6,500 operational photogreghs and 3,000

pages or pusiarl surveillanco reports corerino the daily noveaerts of

all LIMRIcT dificers.

3. LICANS

Durin, the sure ested genonth period, the LICAll Installation anoided

photographie and physical surveillance coverajo of the back of the

LIMonIck insteilation end its garden and jetio ares. this covartEo

provided orer 3,600 Individual photographs as hell as nunerous sur

veillance ani observation reports.

It shold ke noted that the

LICAull base alows Station Mexico City ti observe the LlenicK

personnel during their off-duty anù recreational hours.

Bo SURzarT iS Elsed inschoure #fectivensas

The flxel WBBEY bacelouses (LITTED, LIalI and LILYRIC) provided

approxisatel, 17,000 Inilvidual franes of averationel photographs

during the first g-nonth period of the gest project jear. Within the

Last jear, this photosraphic coverase linie? with the porsical

survelllance reports prepared by each baserouse, has proven to be a

nost relfaile sad viable tocl for:

lo palionin the delly coninos and suinos of LIbRIdi personnel

and indigenous employees.

maimino the identities 'of LIVIli staffers as? the

sitors (sone of whoa are HOLADY citizens)

3o lismoinino ens verifying the relatire rani ani position

as tell as irlicatino the specific intellijence service cornection

of variws IDERIci officers.

Prridin detailed reporting on tis novesent and rabit patterns

of seireto: targets uf special interest.

---

## Page 180

14-00000

C. The Nobile Photo renhic Unlt.

1. Throughout the perlod under review, the LIlluP lobtle photographial

support unit was resularly exploitad and uced by Station Nexicc Clty.

Thia unit provided over 1,000 Individual photographa and was used in

support of station operations anl ectivities. Of particular value to

Station Nexico City and the TIOS? progran were numerous photosrapho

of local and exila: Coatunist lendera provided by LIaIRAP. In addition,

the LINTRAP persornel and unit was used regularly to service and

obtain various jostal accomsolation boies used by Nexico City, Head-

quarters and other field stationa.

RaYaOnd H. GERND& - LINETY Principal Arent.

mrinü the perioi under review, with the exception oi short vacation

periods, Raymond M. GURD:,

continued in hio role an the Project

LIMPlY prineipal ngent, ObralDs operated as the full-time cut-out

to the LINTlY, LILInIC and LICAlIA basebounes and bore the firat

ochelor agont handliag responsibility for the rolatod porsosaol. In

addition, GERaDs continuod to pear the contact anil headling ren-

ponsibilitien of the LIamAP wit and for the operator of the LIEUPTY

photographic doveloping/processing leboratory, LIMITY-t. GUIDE'S

overall operational assionnent involved at leant 1? clandestine seetings

per week, in addition to his neetings with the LIMITY Project case

It should also be noted that GuRudi nade nukerous and cosen-

1al contributions to the sensitive Milod operction and assisted the

tation rreatly with hin detailed eroe knowleje in many instances.

F Svernli Effectlvenese

As outlined above, ench individual operational connonent of the LIblY

Project contributed recularly and sienificantly to the fulflllment of

Station Mexico Ultj's operational progres.

Basel on the continued

excellent perforeance and overall contributions of this project, the

Station strongly recoamends that this project be continued during the

forthcomini project jenr as

an essential elonent of the station's

operational sumort auparatus.

I PROMISS MD SCURITY.

a timely relocation of this base. However, 1t 1s anticipated that the new

ILYRIC base will de In full operation ly the end of detober l9dó.

---

## Page 181

14-00000

dut applicable to project LIarrY.

E. PLANS.

d.

do outined in mensmal 6 of the Station's prosious raquest for the

reneral oi Project IJuPit, a progra lina undertalien to reagulp anl salernize

the LINPTY photo, milite processins base.

During tha past year, a 518n1-

iscant portion or tie muiient uieil in the doveloping and processing

Inboratory was ropinari.

ds a resuit of this proma, segatives rad

photographic prints of dict hlcher quality aro now hairi prolucelo

Corsoquently, onli minor sizies in the operation of the protosmphie

lavoratory and its ajulazeat are contemplated ior the ensuins perial.

The present plasteel conlition, nilenue and frequent use of tho

LImITiLP unit dictates the lanniinte replaceuent of this unit. Station

Noxico ülty has receive: deniquertois approval for the replacesent of this

vehicla.

Arter 1 Jaguery 1967, the Station will revier tie clintlil; ILEMPTY

personnel selary schedule and considor possible valeer, norin on a selective

asis or specifically lejel to the listng cont of Ilvinci

?.

ccors.

1. Fast Project Jenn - Project LIEMPTY Was praviously approved for the

porioil 1 Deceauer Isú5 througi 30 lovesber 1956 for the anouat of Lace

U.s. currenes.

station recorals lilcate that thus for, Buject LImitY

has expende! 36,50del3 in the fiel.:

it is eatientel that approxiately

1,500 inllars has den axenled by Headquarters, principally in the

aculation of new guigrent for the LINTrY photographile inboratory.

Bi-weekly accountings :1ti pertinent receipts end/or certiflections were

suunitied by reynoni E, idlads to the Station finance officer vie the

Project case offica: 1o: all LIEUPPY Project expenditures ide in the rield.

It Is estimateil tint peptoxinately 12 hours of case officer cal 5 hours of

analjet tise is raguire: esch leel: to rulcill the operational, ediinistrativo

cnd aralytical reguiresents of thi: Project.

the l0 kerrack get ta routarlo by laymond i alre does not incluie

in the corteseir period, es increase in the rental of the various base

uses will be enccini-nei as well as the niove-cited replacerent or th

---

## Page 182

14-00000

LIaRAP unlt.

el the endint requested abore, 29,52: dollara should be.

allowed for

Elscal year 1967 sni 15,900 dollare ior Elseal year 1960.

deteiled breakdown of the Priject expenditure by cetogory and by fiscal year

follows:

SALARIES (INCLUDING CHRISTNAS SONUS)

arMOnd M. GERANDS (P/

LIMPTY-4

photo lab

MILTY-O (LIMITED basehouso

eeper

LIEMPIY-> (LICALLA basehouse

keeper)

LIEMPTY-10 (LIGURAP operator)

LIMAPTY-11 (LIENTHAY operator)

LINITY-25 (Cut-out to LILMIC)

LIBMPTY-13 (LILTRIC basehOuse-

keeper)

LILNFTY-27 (LILTRIC operator)

$ 7,000

2,600

3,900

4,000

4,400

2,600

2,290

2,200

2,000

736,906

5Y 67

529,25

551,755

VEHICLE KAINTHIANCE

MV 2666 (GERO.DE)

NU 2279 (LIENTRAP unit replace)

MEAL, ESTATE (RAX, UTIITISS).

LIMITED

LILYRIC

LICALIA

Photo Lab

$5,000

3,000

1,000

1, 600

$7,600

(3,500)

54,325

$665

$ 4,430

$3,170

ERUIPLET

daintenance and replacement

of photographic

equipment

500

ePERATIONAL bYPISES

Purchase of fila; rental of

PO acconnodation boxes; rental

of vehicles; contingency rund

71, 006

TEPAL

515, cen

i..-

÷ 315

125

$ 750

322,020

253

115,980

:

---

## Page 183

4-00000

...

C. As In the past, Rechl H. ükädü will subalt bi-resily eccountines

for all Project expenditures diti auropriate receints ir certifications.

There will be no rajuliegents for surelon currenes bejod the Station's

capability to provida,

?. MERGNICY CONDITIONS.

lo In the ovent of civil dionnierg or the evolution of couplete or

enforced neutrality on the jert :? the host sovernment, it is now bolloved

that regular operntional contact could bo mintained with the majority of

the active LIMITY nsents vla faraval I. GElliNDi or in his absence, Olivor

G. SCANTLING.

B. In the aust unlikely event of the establishient of a reclad openly

nostilo to INFer, llaltel ecinct coulil probably be mintained with the

sajorlty of the ective Project soones.

However, under the circuastancen

described avove, It 1s highly pritable that the activities of this Prolect

sonawhat curtal.lei.

C. Revisod and up datel eneraero contact plans for use with Rayaond a.

CaRUND: and

oliver d. SUllILING are on cils in the station end at

Feadiuarters (ses MNLA-¿o)"5, idol 21 February, 1966 and IM11-28252,

dated 9 February 1966).

Cel # 1 + 4519-38403

50-6-14/1

---

## Page 184

PATCH I

of Station, Mexico City

QASSIFICATIN

SECRET

ICKENSING ACTION

CAN DO MOCKING

DO PASCALES DAQUIRIO

ORI PULLIARD DESA

CAN KIRA INDEXISO

ВЕСКОНИИ

Acting Chief, WU Division

L LIEUPTY Project Renewal

ON HEQUIRED. REFERENCES

The LIEMPTY Project forwarded in HIMA-27569 expires on 30

November 1966. The renewal request should be forwarded to

Headquarters by l November.

ElAte I, SCALETTI

Distribution:

Orig & 1 - cos, mexico City

CROSS REFERENCE TO

BI

• Chrono

-LE SEP I36E

DATE

CASPATCH SYPROCL AND NUMBEN

IAN-14856

1 September 1966

CLASSIFICATION

SECRETE: 1

956; "1 "3 dad

ORIGINATING

WH/1/C. Bustos videla/kaw

COORDINA! ING

MOS FILE NUIAIBER

50-6-74/1

VATE

5654

266

1S I SM.07

RELEASING

AC/WH/1

DATE

1+7)

тори 53

1-03

USE PREVIOUS EDIT UPE

I DISPATCH

---

## Page 185

• ATCH

af of Station, Mexico City

QASSTRATIN

SECRET

: Can MAX 880700-86

Chef, WH Division

SURECT

LIEMPTY Project Renewal

ACTION REQUIRED. KEFURENGES

REP: HHHA 27569, 2 November 1965

1. The LISMPTY Project was approved on 1l February 1966

Por the perlod 1 December 1965 through 30 November 1966 for a

total of $41, 500; $25,520 for FY 1966 and $15,980 for FY 1967.

8. Thore were no changes made in the Station's request.

for reneval, and no recommendations were made by the

coordinating and approving authorities.

Fisie I. SCALETTI

Distribution:

0 & 1 - COS, Mexico C1ty

17 February 1966

CROSS REFERENUE TO

RI

Chrono

LIEMPTY

50 - 6-74/1

81 FL. 766

DISPATCH SYMPER AND NUMBER

CS COZZ

HMM₩ 14343

CLASSITHATION

SECRBT

MOS FILE NURSES

50-6-74/1

ORIGINATING

EXT

4506

WH/1/Bustos-Videla :mep

CLRCINATING

WHITSIMME

CHE'CE SIMAY

DATE

DC/NH/1

FORM 53 USENTEVIOUS EDITION

DISPATCH

---

## Page 186

DISPATCH

Chiote :1! Distolon

CLASSIFICATION

STAMIL

PROCESSING ACTION

D0 INOCKING MIQUIRED

ORY QUALITTIO DESTI

CAN NUDGE INDEXIMA

0052

FROM

ACTION RI QUIRED. RESTRUNGES

Action Required: See paregraph 2.

station Mexico Citj's Project LISAT! expires or 32 lovenher 1965.

Forwarded herewith ani lier semrate cover in split transmission 1a the

Request for Renoval of Project LIaTY.

It 1s requeste? that Projoct LInETY he runerod for the periou

1 December 10f5 through 30 lovenber 1944 in the not or 911, 500.

thio total, las, 520 should he allotieu cor ri 106f and 115,000 for in 1067.

contention Pianine

11Le?S C. JUTTIS

/;:.

150,225,

RECORDS CFFICER STAMP

The Pollenine milton 1.

20600C2-Azee

Sioner:

Aria lames

Attachment:

Left hand side h't:

night hon? side l. so ca

dietrihiüion:

Nolk:

vito

• appropriat

CROSS REFERENCE TO

CS COPY

DISPATCH SYMBOL AND NUMBER

IE:X-27563

SECRET/E

56-6:74/1

2 Novenher 1945

IMESTRE NUMBER

30-5-7113

---

## Page 187

SECRET SUMER

FINUEST FOR RIDIN

1. CURLIE ORECITES

1) The overall objectlie of Froject LIbitY, row in its cluhth car of ax-

Istence, 10 to collect operational information on the LI RICK Installation

ani mobilo photographic ai physical surveillance meclenisms.

objectives which ars to ta fulfilled through the use of the LIbiTi Instal-

lations and personel are as follow:

1) To provido operational iniormation pertainine to the la1ly activitles

and movements of the unwilck porsonnel, perticularly those indivlung

of Intelliuence intergst, no woll as information on tie LItrICK physical

facilities and visitors to the premises.

2) To collect operationel information on persons associated with LIKICK

and on Inlivianis Inown or suspected to love conrections with oppoaition

intelligence services or other hostile groups which are inimical to the

intorecto of ObiCa.

5) To provide operational support, countersurvelllance, and other pro-

toctive cervices to Station personnel and operations as may be deemed

посезвогу.

The above objectives are to be fulfilled through tie continiel exploitation

or the LIMITED, LILINIC a DICALIA basehouses, the LItt mobile unit, and

the services of long-tire contract agent, raymond !!. GRaDE.

These objectives

sre in consonance vich ani represent partial filfillment of the following

sections of tho current Feleted jission Directlve (RuD) as approvel for Mexico

City Station:

ENJORITY A

Section 2, subsection k.

PRIORTIY E

Cection 1, subsection a.

Section 3, subsection a.

) Throughout the project teer under revie, Project LIzar! continued to

antribute directly eni siciticantly to the fulfillent of tlie station's ani

Reaiquarters' requests and raguirements for coverzee of various targets falling.

sithin the frameworl of the abure elteil objectives of the ID. Specific

unles of the LIban! Froject's progress and contributions to the RiD will he

Paul In daction io, bareas.

SECRET,

---

## Page 188

SECRET,

2.

Minidistiatiro - no notal In the Marlari SubmiChol INUTTY prOgross

reports aù the furions leguest for denoul de ituject ulatiNi (Section VI,

musection il, deli tha past tho joars 1à ira teema dbilors thai raig of

the operationai susturmunte loriod on ollier do almili (eoverdi li Eroicet

JIuTrY duriao sla concho on the not. arject terr, villo completely within

the roam or then, more triling nolde to Gher GOode 0. TO end 111118

consegionals, a not iruduct was prupared do the sinion end approved cy liead-

quarters to cover julius rolationsha man mai dio cirport of scutclin.

SCUTLLiO vas therufore remoral cron tie resis dê iroject LIULIN on 1 laï 1965

and intesistei late the new cluse support it'or livor.

1) Operational - do notol In tha pierious depiast for Mojoct Renawal, all

operational netirit wao suspended in late iceboctor 19ft ut the IDIED taso-

house hearise of the potontial accurit. malcontions stemrs tron tia orert

publicntion of a IraTED photo rech 1h the carman comission soport. M:0

Strtion

subsegentli acquirel an epartmort in the armediato vicinity o. the

Lustici insinilntion nad moved the lit aD taschaiso copers into this tempo-

rari loention.

anor a prudent. coolina-per peridi, all LairMED operational

activitios

(phedoraphic, phialect suncillaise, and raile alspatching) wore

re-Initiatel dr die nou location In carli usmira 1015.

airing the interin

period, anù as a reculi of separnto correspondeice with loadguarters, thie Conner

LIMITED properti vas cold to LIoUcINt win as per forml agreamont with thio

of the new mil in vill ho roserved for the mie ise o? Stetion lexico City.

soon completion of tie new stricturo, i

the lIarao personel and operatioral

rotivit; will la savely transferred, iron tre deuiaiy apartient to the now,

more Ideally Inated LIOUSIF buildine.

C)

Finance - fter a detallel reviod or tie tremedisting blanty agent salary

atricture, i salacted acents (LINGTH?, Mbsr-11, Nu slott-lt) WEre

Eranted salary Inoronser effectiva 1 lehra: 18cs.

(romal notification and the

pertinent revised ionoranium ol Crul Comitent hore Comariod to Headguarters

with 1081-26252, intol 1 June 1965).

In aultion, as por the lealquarters pre-

pared contract emerinent, famond li. G.Jünhü las stantel a salary Increase

There res no change in the splaries of the eisit remain-

Ins active blast sents.

D) Persomel - ilLar-26 vasi prantell a Pl en 15 Potober 1905 for ise as a

cut-out to the muric basehouse.

inh. II Infurantion 1s doing compiled anù vill

be submitted in the near future.

LIo Pr-a has actlial ised atter raceipt of

the Pon.

HE DRIVass

Throughout the period under review, each operationa component of Project

LIaTri contributes octlrely to the

marillnend o. the overall operationai

procran levies in the station hy the

1GD and chier teriquarter's requests.

lighlights of to recomplishments and adilevaments o. ench composent follow:

SACKETT

---

## Page 189

14-00000

STORET

1) LIED - Mimi hout the past pruject jont, with la cacoption noted in

prograple, cochin do niore, bic Littre listeristin providad intli pliato

covernãe and physient surellianco of the min sses of tie hIntick lustni-

lation durine:

tho niterucil anl carly ave: ire tairs.

(airin, this morning

"cirs, the LL:ITi) Paselouso icoporo propare: die aperritton surrelllance

roporta nd plioto inglic loes

covcrin; tha precious ia's netl:ltius). In

aidition, tho LIUTLO lastallation providol a Cirri io lo dopatch base,

usal regilarlo to cuport the uratricù surcilians tcar.

lecnusc of the

tIct 300ur1ty mouses institutol hu the local socirin; forcer in tho

Immediato vicinity or tle LInIcK Insiollation, mal stakoouto lu this

unilatural team aro preolided.

However, with the sugart of Me LININeD

radio baou,

which can dianatch thic CCan

"ron ai sorro salo-arcas, socuro

mi effective ourveillaice covoraro of 1113 tar=° 28 lo prodium.

DUr'inE

the sen-ront! portod ira: 1 lovember Jor tard To Gust 10'e, the

LINICO inoo provlied 150 rolla of 35mm operativari still photographe, wilch

provided to stailor Miu: rpproxicatoly 2,9.0 draiiant Cranco.

Ind

niltion, the LIlTs? lase prosaul 41-wocklo sasion suralllaree Biamary

Iuporis.

8)

EuRIe - Thie LILiRIo Insisilnilon alas proviie: amasire pliolo rapide nd

rised vieuel

unrolllnnee oû tho front of the incar inotalletion tirough-

out thie portol uruer reviar, during the comter si certi nibernoon lours,

vith everiino beini spont in the properation si mitter curvcillarce reports

mù pliotocrupite loja.

Trine the tor-muti seria "m 1 Movemer 196,

through 30

Acuat 1907, the MILiTIC beachouse parriad 5,000 Irallilial

franes (225 polls) of 3ã operational photo sais.

In aidicion, the LIL'RIC

Pascloude kroper movido: 1,000 prese of pusine simeillance ruporta

coverina tlio initi morenores of the principal interor difieors.

LICiLLA- sirin the miere-notea tor-month perio, to FICALlA Installation

provided piobo raptis mi physical surrellinnes erario of tre hack o€

tin LIsTIck listallatier, the cordon and lie jali sca. Mile coxcroce

projuced 15j rollo o: 3izu fila, which prodica: it indvluun photocrophs

as well as Mi-wieily plysical siriollle:co sunaries, In adlition, carlous

l'endguartero specialists rode ridiü line entrics ando the LIChLI, haschose

for or-sive clandestine survess in support dr e dictiol sonalilve

tectinical. uperailon.

IRONG ON FIO MARICE LETOrIUSES

prepared to deen here over pover to nearest a a rollance repo

SECRET,

tallisto

---

## Page 190

14-00000

collowii, tho anili amanunts of lIailui persoircl:

ploralit ca concirmin; tha lioniltles co unfuci sis" ers aid

111)

verifin; tie relative rail and posiulon as voll as the speolfic

talligence corvico connuction of Mions LIttu citicero;

1v)

pruviiod detailed roportin; on tho moronent untiers o: solocted

tarseto of special Interost; and

÷ pruriain; physical incilitica for the sippor o° vario:s technical.

aid survo llaico dean operationa.

D)

mit has licavily

nodi and explolts! ly cation sexico diego

ult proridou 1,797 indiriunal ¿curapis di rariers sorroto oi

curationl inioresi to tunico sit: drolo, marcio:inal, 100n1.

cumulot loadero mi installationo as toll as rarios commulet

exiles nor rectaln, ln realco cilia

personul recularly sorvicol approxtratolo tient: rootel accorro-

dation boxos wood opuracionnily ly dosleo Cis, ¿calguarters, not

othur sunlicin.

ipecirlolli, the LIamP Init:

1)

piovided and sorriced recumo.ation loves for the sensitire Maico

11)

provtied photn.raphto,castns corernge o"ai anbassy et intercat to

MUTUDiO for use In operational alamine;

111)

iv)

provideù up-in- iate plolos o: inkrimals and an inscaliation linier

wilh thie upandan Repuhlicon (logoliots) croup lu texier; aul

providal Identi dentions, locations, and contects on varris local

mnd oxile communists in supporü or rcerurcho/paretratin procrems

airooted mininct the Farbido Comnisa Lexicano, the Fartiio Popiller

joclaliate, ani verlous ustle communist lears.

• CraFter the start period beeto tas

covered ly

Ligar? trotect (sed parairap?,

sectior a.)

011vor' Go CurbINg contributed homili to tie munilizent of the

ID.

contact to Listen 1, the sincl

ser'el as the alterate siation

singlcto.: nient in s sorsitire en

productive inuIche operntion; prepared mumorous detailos cas11

reports threo of wilch wore in support o AUTURe o apartional programs;

conductol severnl pritext investlintions; successinn cecited ard

trunslations and physical leg-work; and trulled variois MaRtY ecents

during the absence of the roguar LIari Principal Arent, lajrond li.

GARINDE.

SIGHICL

---

## Page 191

14-00000

11th the cacopelo.

GauD: continue: In tils rule as the

to croco insis; riddor controt ulil tie operntoro of the LIstie

nobile photo it; regula arnonco miti: do lIant: protograplic

oieloph mu procecalis teen; enl rumeroin socratlonnl tauis in

suppurt no tie 1ü0d operntion.

peelricall:, tlis offort involvad

at lense twilro cirriestin cent or case diricor scelinus per weck, tir

first cchelon clanelal accorinta: 111t

¿or tie expenditire of $36,000

pur clun, in alastion to marius cover job dutles.

MUNRY OF KTINCRIV.J2IJG

As Otlinel afore, enc: Indiillal oporationl component of tre lINIT!

pucet concrinute cimádcoruly rio, recilont: 10 tin Milfillaunt of the over-

all operaülonal procren loried on the slabion ly the RiD ad ochor alrectives.

Tacod on the clue periormance aml mereal contriniong of boin project, the

Strolon enucludes tree tilo operallen it accential. to

the Milfillnent of the

1a eni choull ie continuca during tas coriconing ceor.

3I:OTU 3E MID BENET

The only signtricant operationbeerit, proilens wich confortei the LIde

protect during the poriod inuer rovior, wore thone wick etenerd irrelly or

indirectlo fron the o'ert r-lease de die clonestire LineD photographs

published In the vorrer Comlesion lsport.

tie precioc decece occonlored

Jucall: iy the pullic uluclosure of els alaniestinel: required licoration

still cannoù he mcasired.

lorever, tink-consuning personnel cours, with the

attendant loos of covernto and calitional coct as well as otherise unecesser;

expenditures of sation time ani epinr vore roquircù ly this Incident.

peragraphi IV of the lOth ITE-PIl Frolsei, Renewal Request or detailo).

(509

Other

then the above affair, there hare heen io operational, alinlatrative,

or

personnel pronlens wilch the stetion coull not readily and securoly resolve.

LICION ME LEENCHIE COORUEMNIOY

Not conlicahle to croject LItTl

E.

the poot project year, torico Cly Ctation will contini. to sive Increasci

empincis to Improvine t's quallt; or the photographie projcci from tre

LIdarT raschouses.

"hile no conconitant roduction in the quantit of ploto-

raphis 13 anticipatel, tle Project dose Orloor, will the assistaice of ite

Jocal NICE representative vill continue to coasis the quality rather tran

the number or photographs.

tus ancillery objectivc of tis progrin is to

replaca a sinificant portion or the squinaent nou used Ir. the TIa!

dereloping and processing lah, tact of tale caninent is over eight scare :11

---

## Page 192

B)

sid no lonjer leis itnul: to thu producito:: or Alch-qialiti no-nilies or

plotographie ariato. Mie tolal cost of tils equipmat replasceit progra

lo not ageduci to

croni jro and sutiledent Rundo liard icon loliris! In

thia cost section a lilo reneral inquest.

Other than note: d'ove, inaco Cit: Enlion plais no dier sionfiscont

slice 1i is funerally

colt desi this procci lo cou opcraving aù ils upidcum siza mini lin a

cumplotaly sacisinctor tarcr.

noter 1jeanory loff the Sation will

roview the cristle alice polar, solelula nud constior possile raisco,.

again on a selectiro icolo.

7. COSTE

B)

corticications sero cumilica li GiADE 27l JAITiNG to the station firanco

officor via tle project Croo Crileur for all MaTT Project caponultures.

It is estimated bat approvimtoly Airteen lours of Caso Officor aul Ciro

hours of nnalist tino lo roguiral ecci wack to fulfill the operational,

alministrative ani maltical requiroments of this project.

couirö Project Juan - It In requested tlat rojoct LIanTY he approveil in

the amount of wil, 500 iur the porioi 1 Deconor 196, through 30 Moreater 1956.

Cine projeci sas prevional; programmel for 100,000;

.. Ur this acount, 195, 520 8:0:1l 19

allotted for ai 19ã6 ma 115,900 cor Fi 1057. i detailel breaidon oi

project exponlitires by catocory and hi fiscal scar follows:

SECALS

---

## Page 193

14-00000

LEE (HICINDING CHRISTS DOING)

14, 000

LIMPi- (plioto 1a.))

2,.00.

nioto leb absistent,

3, 900

kcoper)

LIÖNTY-? (LIC/LLA baschouse

14, 000

kooper)

I.ICTII-10 (LINIP operator) 4,400

LIUTTY-I1 (LIaNTF operator)

LIaTi-do Cut-out to LILARIC)

2,200

LINET:-13 (LILIRIC asehouse

2,200

kceper)

529,900

VELICLE MAINRETIALICE

MY BACO (GATLIDE)

iN 2279 (LINTiP init)

19,000

RIVE COMES (RAT, UNILITIES)

LITATIC

LICALLA

Thor Lab

519,100

¡airterance and replacement

of photographic equipment

OPRIETONAL, EXPENSES

hichase of filn; rental of

PO acco noiation bores; rental

of velliclou;conüingeney fund

TOrAL

71,000

- $750

51,000

=======

111, 500

=======

127,220

SURE C

I! EL

11,500

3,170

$ 250

250

=====3=37

35,990

---

## Page 194

c)

As in Dha gest, fa mond li, GalaDe till salzit "i-seeili accourtings

"or

all projest expor lures viti appapriade rescigis ard cortiricatioa.

There sno to roguiraments cor toric currenar separd the Station's

cejalility to pride.

A)

C)

In the erent ei ciril lisoriors co che civlitia. ot complete or enforced

rentmlit: on the part of the host covemmand, it is nou bellaved that regular

operational condout sould he maintaindi with the active LINTTY agents vie

rayzoni to liidi or in his alsance, plivar i. diLlio.

In the mist mllteli event of the estallisthat or a resine hostile to

oDscio, llasteù coitect could probsily le mintaine? with the active

Infeat rounts tirough Guraids er intimatio. soverer, inder the corditions

descritoù above, it is doubtiud mnather this pin'ect voulú ha able to operate

Energano: communications plans for Chiras &. SullING 211 Raymond M. GENDS

are on file in the station anl as toolguertars (see EN:-15082 anl 1224-15081,

0. 25 lorenter 1951.

ta aultion, in lode 19, e rosier was hold with all

notive agents oi thair recontact plans aul terial recomition signals.

SECRETS

Elle#l +51-306-20058

50-6-9111

---

## Page 195

4-00000

INDEXI

Durs @ no

CRASSINY TO PILE MO.

х- аСР. РЭ Р /ее. но.

ТроЙ

NICO CITY

ACTION

CLASSIFSED MESSAGE

TOTAL COPIES

SECRET

/SON/UNIT 10110 180

Cille Back

I RID COPY

20

BAGE OF Z

REPRODUCTION PROMIBITED

ECRET C12940Z

PRIORITY DIF CITE MEXI 4616

TyPIC AYROD LIEMPTY.

# I Str. 65 IN 43837

LISMPTY- I RETRIEVED TUO LETTERS NONALCO SOX 25 AUE 65

WHICH GERENDE PASSED STA NEXT DAY, BOTH LETTERS ADDRESSED IN NAME

OF'EOX HOLDER CAN ALIAS OF L- ID; AND CONTAINED RANDOM NEWS-

PAPER CLIPPINGS. G AND STA INITIALLY FELT THESE PROBABLY SCANTLING

TEST LIRS AND HEID SAME PENDING S° RETURN FROM GUADALAJARA 31 AUG.

2, SCANTLING EXAMINED LTRS I CEPT AND STATED THEY DEFINITELY

NOT RPT NOT HIS TEST LIRS, FURTHER EXAMINATION REVEALS ENVELOPES

TYPED ON SAME MACHINCE AND ONE BEARS NO POSTMARK OR STAMPS ONLY

NOTATION LIBRE DE PORTE, SIA ASSUMES THESE LIRS PROBABLY SENT

BY LOCAL SECURITY AUTHORITILS AND THAT BOX COMPROMISED. DOUBT:

AMRIFT-I COULD ARRANGE FOR INSERTION OF LIBRE DE PORTE LTR..

L-13 AND G SUSPENDING ALL LIEMPTY ACCOMMODATION ADDRESS SERVICINGS

UNTIL FURTHER NOTICE,

3. ADVISE.

RECORDS OUGH

SECRET

Siat live fermis

Noto: T:0:r.:

5:a.2::

11' midi

50-6-74/1

---

## Page 196

DISPATCH

m mich of Station, licxico City

•GLASSIFICAIION

SECKET

NIR

PSOCESSING ARTION.

¡NO INDEXiNE REQUIRED

OFEY QUALIFIC DESK

CAN WOLE INDEXIMO

MICROFILM

FROU

achic, kill Dirision

LINITY Project Expiracion

ACTOUN ATTISED RUERUNCES

REFERENCE: UM9DY-13,350

The LIEMPTY Project expires on 30 November 1965.

Please forward the renewal roquest so thát it reaches

Icauquarters by 1 November.

Ernest A. LUSBY

Distribution:

0 & 1 - COS, Mexico City

CAROS REFERENCE :0

RI

Chrono

50- 6-74

0 ÷ SEP 1965

DISPATCH SYMBOL AND NUMBER

DATE

U.S. COET

HMMW -13,941

CLASSIFICATION

1 September 65

MOS FILE NUMDER

SECRET

50-6-78/1

ORIGINATING

OffICER,

1y7:5T

K1l/1/Bustös-l'idela:mep

C..URDINATING

44506

DATE

OFFICERS MAME

uHl1

DATE

(:0)

FÃ 53 USE PREVOUSESTUN

IS IF RE

RELEASING

Nilliath.?

Broe

DISPATCH

---

## Page 197

ISPATCH

Chlor of Strtion, Mexico City

LLASSUTMATION

SECRET

TO INTRINS DETERES

Chief, WH Divialon

LIEMPTY Project Renewal

ACTION REQUIRCO. REFERENCES

Reference: HAMA 24650

•1.

The LIEMPTY Project Renewal request forwarded in

reference, wag approved on 29 January 1965

for the period

1 December. 1964 through 30 November 1965 for a total of

$45,300;

$27,675 for FY 1965 and $17,625 for FY 1968.

• At the time of approval, Assistant KUDOVE stated

he expects this project to

live

within the sum authorized

for the year, and that there will be no amendment for

additional lunds.

4. You are reminded that the LIEMPTY Project, as approved,

only covera the salary for Oliver G. SCANTLING through 31 May

I 1s suggested that a separate project be aritten t

cover SCANTLING

11 his new duties do not fall entirely unde

any other approved project.

John N. CORNISH

Distribution:

Or1g & 1 - COS, Mexico City

- 4-24/1

CROSS REFERENCE TO

DISPATCH SAMAICA ANO NUMBER

DATE

19 1.2

IMMW 13350

CIASSIRICARION

S

ECRET

HOS FILE NUMHER

50-6-74/1

ORIGINATING

OFFICEN

184198

CBustos-Videla: Jan

COORDINATING

1"4507

RI

Chrono

-- =5-

ROUTING

RID/Ali

RID/MIC

TITIA:

WHA

SHAICE STRIN

WH/PO/ A

FS TILE SYMENT

AC/ WHD

hu go 12

PREVIOUS LaITION

idûs

RELEASING

--RAFORD

W.

HERBERT

DISPATCH\

---

## Page 198

DISPATCH

CLASSIPiCATION

SSCHST

XX

INFO.

FROM

PROCESSINU ACTIOZY

MARKED FOR INDEXINO

NO INDEXINO REQUIRED

NLY QUALIFIEO DE

AN JUDGE INDEXIA

MICROFILM

ACTION REQUIRED - REFERENNES

Rofanense: ENkl-24550 datra 29 Aitober 1964

As ju: section VI, subsection E, of tho attaciment to lieference (the

Roquest for flie foreval Of Project LINTiTY), Sintion Moxico City 13 at present pro-

paring a forari Anjeet Outine to cover KUMARK's Inlationnhip with and the

operational retirities of Oliver O. SWiMLING. This activity involves the conduct

and support ee rarious operations targattod primarily against the local Sorlet Hoc

2. It is requested thint Reaigunitors assign a cryptonym and a four part file

number in the sio seriosior this arguosed projoct.

Cratina L Peuman

for

Hillard C. CURIIS

Istriciati:

CROSS REFERENCE TO

10841-25254

CLASSIFICATION LOT

SECRET!

20-6-74/1

27 January 1965

MOS FILE NUMBER

50-6-74/1

---

## Page 199

4-00000

SECRET

STAFF REVIEW OF FI/CI PROJECT

PROJECT

FUMOS

LUISIPTY

$95,300

CASE OFFICEN

CITENSION

charlotto puatos-Ildels

$506

DIVISION

STATION

TARGET ARCA

Bazigo C1t7 R8x100

ACTION

APPROVAL

X'REMENAL

MENDMENT

EXTEMBION

JTERMINATION

ROUTING OFFICE COMMENTS

APPROVAL LEVEL

DIVISION OR STAFF

DOP

DCI

3 B 2607

RETURM 101

DDP/PG/FI-CI

Projects

3 є 83

RECEINTO POPPE

FORMARDED

DIAPLANT

RETURNED

REVILKING COUFONENTS

89 DaR

An eas

OTHER

COSMENT POR INTERNAL STAGE USE EÑOS TO dO FORMARE lO RDE DOTiSiOn)

COMMENTS AND RECOMMENDATIONS (TO dO fOrMard lO she DIViSION)

The CI Staff concurs in the reneval of this extremely valuable

CI/CE operational support project.

CO SENT DIV.

DATE 2 5. .I1 V 1965

DATE

T.85 526 use enerious correon

SECRET

119-20-10)

---

## Page 200

14.0000

SEGRET

i7 December 1984

MEMORANDUM FOR: ChIos, EXO

SUBJECT

: Project LIBMPTY

operation

new operational

John Horton.

C/1H/PO/A

---

## Page 201

14-00000

ON C. rustos -y

UNIT.

IXT

#Il/1

X4506.

CO INDEX

O NO INDEX

• SA

ROUTINE

Ri d

To Mexico Ciry

FROM DIRECTOR

COME. WH8

INtO

044, 8PA, POZ, VP, FILE

MEXi

CITE DIR

LIENPTY

68601

KEFERENCE: NEXI 1799 (1N 35305)*

1. HE DO MIT PLAY MEET LICISING.

INFOPMATION

REQUESTED DIR 681394K AFTER NECOTIATENG KITH 1V

BEFORE CONCLUUING

AGREENENT.

2. ANTENNA ROTATOR REQUESTED IS BEING POUCHED WEEK 7

DECEMBER.

Sp

EXP OF MESSAGE

EmpT

aL/Recr/Edward Denison (phone)

floe/relater. (phone)

in states this week md prehan! Com? he reached if llers

wished discuss sale of ilalty property in perior.

station indicates

LIEMPTY would be sold at lond veile cull as housc value not mererent

since house to he razed.

Asked chorior Arcanes

102.102 10116

Station by Christmas.

co hias concurrence

concluding agreement with Later

Miie attorot determine

approxinte rental cost for altaR exertrait and

G.Cspaca

180M. HERBERT

AC/WIID

I Chidi, wyi

COOLESTA: MEERS-

RELEASING OFFICIA

REPROFUCH:ON LY OTHER THAN PARISSUNG OSACE TS PROMISITSO.

ARE PRIESTING

Capy No.

---

## Page 202

31

FICO MESSAOE

SECRET

PANION/UNIS MATAPIRO

REFRODIKTIDN FAAMIRITIO

fouce Citt

POVANCE

rory

ция.

D noreso

1880

VR, FILE, OLY, BEA, AE2

I runes ro: Unr

TIME

ECRET 031833Z

SIR CITE MEXI 1799

""MEDIATE ACTION

lEMPTY LIMITED LIMOUSINE

13 DEC 6418 35 305

*MAS MAAZANGS ON PRINCiPLE SELLING

LimiTED PEOPRATY tO LImOuSiNE

EFS A MEXI 1762 GN 31737)

B DIR 68139*

1. LIMOUSINE IN PBPRIME HIS WEEK, PROBABLY COULD BE REACHED

THROUGH MATHEW P. DINGHLEY IF HQ DESIRES PERSONAL DISCUSSION. AS

STATED REF A FIRST FIGURES GIVEN REPRESENT LAND VALUE WHICH ONLY ONE

VORTH CONSTERING FOR'URPOSE THIS SALE. HOUSE VALUE NOT PERTINENT

SINCE HOUSE TO BE RAZED. OWING AGE OF HOUSE, DOUBTFUL SALE OF MATERIALS

SILL EVEN COVER DEMOLITTON COSTS. APARTMENT RENTAL NOT AVAILABLE

UNTIL LIMOUSINE RETUR: AND DECISION MADE AS TO SIZE AND CONFIGURATION

2. IF ANTENNA ROTATOR REQUESTED IN HMMA-24630 NOT ALREADY OBTAINED,

ALID AN OTHER SEFVICEABLE ROTATOR AVAILABLE FROM SUPPLUS, PLEASE

UBSTITUTE. REQUEST ADVISE IF CAN BE SHIPPED TO BE HERE

SACRET

,BEFORE CHRISTMAS.

SECRET

LEMPIY IT

----==

---

## Page 203

14-00000

"Funtos Videls:ned

UNis.

4507

O NO INDEX

gAll:

1 DEcember 1964 O FUS IN CS FEI NO

1O, MEXICO CITY

PrOM DIRECTOR

coN.

WH8

NaNTOS FORM

53

2

SE T6/1

NO OL 4, BPA, P6,2, VP, FILE

10

IDKI

INFO

CIE DR

ROUTING

PL

5

ЗЛас 60 10

03¿

68139

RSF: 15XI 1752 (I: 31737)*

EUQS APPROVES IN PRINCIPLE SALEM LITED PROFERTY TO LETUSES. ASSUMI

TITS IS AT TOTAL EUX VALUE INCLUDIE END NO ICUSE, PER ELE 540 E, WE APPROVE

HIS DERSTRIG PARENT OF LAD VALE ME CICE LIARS. ASCUS IS WILL SAY LOUSIE

VALUS INDIVISLY. ADVISE. COPIERS SUES PRICE FOR IDAS DEIGURESTOS PRIOR IO

CONCLUDING AGRAINENT NITH LIDUDE. NO ATEPT TO DETAILS AT LEIST

APPROXIVATE RENTAL COSI FOR LEITES MATEN AT AEVISE.

12/323

mcarter

Mr Mail

BETE

WTI COMENT:

#accordins to Offies da infeatles Infornation du origisal purchase

prics in 1955 was $12, 70 sad thi Station mada $3,500 a repairs

and renovation.

'ALRADIN; OPTICAR

COORE TAT-RE OFFICER:

=ERI38

factudoe

REIRODUCTION BY OTHER, JEN THE ISING OFFICE IS PROMISITO

ОБТВЕДТІСАТЬНЕ

Capy No.

---

## Page 204

-TOTAL CONIES

TROK

CLASSIFILO MESSAGE

31

SECRET

PEASON UNIT NOTIPICO.

Irony

REPRODUCTION PROHIBITED

15

MexiCO CITY

ACTION

TO - WHA

VR, FILE, PG'Z

4

ADVANCE COPY

JIssuco

SIS

TIME

18

Reg

SHEPET 272345Z

DIR CITE MEXI 1762

LIEMPTY

CP

8 Ho 64 1ụ 3 1 737

RSE DIR 6560696996)

Cin

MEXIN 1397, 29 O 64

1. STATION HAS TWO BANK FVALUATIONS OF PROPERTY; ONE BY

FINCO VACIONAL DE MEXICO OBTAINED BY SCANTLING IN PSEUDO AND OTHER

RY BANCO AZTECA AT LIMOUSINE BEHEST. RESPECTIVE EVALUATIONS

APE: LOT 185,266 A'D 139,693 PESOS; TOTAL TAX VALUE 255,575

AU2 219,242. PESOS WHICH OF COIRSE INCLUDES PRESENT HOUSE. DISCREPANCIES

PETHREN TWO APPRAISALS NOT SUFFICIENT WORRY ABOUT SINCE FOR BUILDING

PIRPOSES ONLY LAMD VALUE PERTINENT, AUD DISFERENCE HERE LESS THAN

Sane PESOS, SO BELIEVE CAN DISREGARD OTHER FIGURES.

?. LIMOUSINE HAS ALSO HAD PLANS MADE FOR A STORY BUILDING

OY PROPERTY, GROUVO FLOOS CONMERCIAL AND THREE FLOORS OF APTS,

OVE OF WHICH WOULD CHARANTEE RESERVE FOR LIMITED AND ALTER AS STATION

WISHES.

SMALLER

BUILDING NOT DEEMED WORTHWHKILE INVESTMENT.

DST STUDY SHOWS

BUILDING COULD PROBABLY BE PUT UP FOR ABOUT

535,999 PESOS, OF WHICH LIMOUSINE COULD BORROW ABOUT 433,909

FROM BANK.

JUDGE'S RUILDING COULD BE FINISHED WITHIN 5 MONTHS

O SCINTIO DEMDETTON TREAT STRUCTURE. LIMUSTHE MOULD DO URT?

SECRET

-.

---

## Page 205

14-00000

CLASSIFIED MESSAGE

SECRET

iN 31737 PAGE 2

FROM OWN FUNDS WHATEVER NESDED TO SUPOLEVENT SANK LOAN. IN ORDER

RECAN SEEN OF OWN INTENT, NOT LENE DEFER PAYMENT TO US OF

LAND. VALUE FOR 3 YEARS. MEANVHILE ALTHO WILL REQUIRE ANOTHER APPRAISAL

FROM RANK MAXING LOT, THIS WILL PRORABLY NOT DIFFER MUCH.. FOR

PURPOSES GENERAL AGREEMENT BELIEVE AVERAGE OF AROVE TWO APPRAISAL

FIGURES FOR LOT CAN BE TAKEN FOR PLANNING PURPOSES.

3. ¿TIOUSINE NOT VET AVARE OF INDEPENDENT EVAL, BUT WILL INFORM

HIM IN ORDER ARRIVE AT FIRM FIGURE FOR NEGOTIATION IF HQ APPROVES IN

PINCIOLE.

4. NOTE THIS SOLUTION IDEAL FOR STATION, SINCE RETURNS PROFIT:

OF ALMOST SAAB DOLLARS ON ORIGINAL INVESTHENT AND RELIEVES KUBARX

OF ONUS OWNING AND ADMINISTERING PROPERTY AS WELL AS GIVING

LIMOUSINE FAVORABLE CHANCE PROFIT WITHOUT ANY COST TO KUBARX.

5. WHILE RENT OF LIMITED APARIMENT NOT SET; XUBARX CAN COUNT

OV GETTING FAIP SHAXF. DO NOT BELIEVE RENT FIGURE SIGNIFICANT

FACTOR IN DECISION.

SECRET

SECRET

---

## Page 206

4-00000

ORG.

UNIT

EX8

DATE.

PROM

CONT

Buston dela: ja

WH/1

O INDEX

MESSAGE FORM 17

SECRET

4506

DJ. NO INDEX

27 Noy 1264

DO MILE IN CS AL NO. 50-6-7421

/ Mexico CIty

DIRECTOR

WH-8

INtO

P6-2, VR, FiL CP

ROUTINGS S

332.

SIG CEN

TO

PRTY MEXI

INFO,

CITE DIR

LIEMPTY

SINCE PROJECT MUST BE SUBITTED BY 30 NOVEMBER REQUEST 7 0 6 9

PRIORITY REPLY TO DIR G5696, 20 NOVEMBER 1964.

END OF MESSAGE

& comment: DIR 55606 of 20 November 1964 requested Station t

EXHIXXX clarify question of whethor the LIMITEI

paschouse was to be razed and rebuilt or moved.

Costs must be included in project renewal.

DESMOND FITZGERALD

DEGRADING ORPIGEO

COORRIMATIMA ORRISERS

GROWN!

SECRET

astadad trom puters

REPRODUCTION BY OTHER THAN THE ISSUING OFFICE IS PROHIBITE

AUTHENTICAYNO

CoDy Na

---

## Page 207

4-00000

ROUTING

5

oRis, C. Bustos-V1deln

B4 SECRET

20 November 19680 Me IN CIv Na 50 - 6-24/

To , Mexico CIty

CP

TROM DIRECTOR

CoMe WH8 NOVA FiLE, PEZ, CICA

20H3 61.21

ROUTINE

SIG CEN

MEXI

чека

an Da

LIEUPTY

55696

REF: DIR 58997*

SINCE ANY MONEY REQUIRED FOR CONSTRUCTION COSTS LIMITED

BASEHOUSE SHOULD BE INCLUDED IN PROJ RENTHAL, AND IN VIEW COMMENTS

PARA SIX A OF INMA 24650 LLEMPTY PROS RENEHAL RSQUEST, PLEASE

ADVISE WHETHER YOU PLAN ANY ACTION ON RET.

END OF MESSAGE

45 г

WH Conment: *Gave higs ideas on advisability of razing and

reconstructing building containing LIMITED basehouse.

DESHOND FITZGERALD

C/WHD

ЕВАВАВІНО ОРРІВЕЯ

LENE, KAURIAN

COORDINATIME OFFIGENO

SECRET

Irst tal pas sobas

XEPROOUIETION aY OTHER THAN THE ISSUINS OFFICE IS PROMISITE.

AUYMINTICATIXE

OFFICEO

Capy Na.

---

## Page 208

().

SAN'ATAN

DISPATCH

ChIaP" Of SRARIOR, MeXICO CALY

ASEO

PROCESSING

ACTION

MATAND FE 186019110

1 DO INTERINO SEQUIETO

73

тото

FRITA

SUPLECT

LILIPTY Project Redonal

ACTION REQUIRED REFERINCOS

FYI

НА91-10391, 31 ГЛА ВЯ

TDA LISMPTY PrOjoCE Mill espire os 10 MouraDes 1963, TuA Statlon

la roquesred to forMard lta rearial roquast ds soou se paraibla.

EXO OF DISFATCH

Diatribution:

Oal - COS, Moxico City

• 50-6.74/1

DATE TYPED

1 DATE DESFATONEO

27 Sep 62

14 - ОСТ 1982

DISPATCH SYMBOL ANO NUMBER

1196)-10931

HEADOLURTERS FILE NUMBER

50-8-7411

- RI

Chro.

ROUTING

RID/IN

RID/":3

INITIAL

SIASSTFICATAT

SBORBI

ORIGINATiNG

"DivaMexico - Leal. Morris: j

CORDINATING

ird, i

Sano

c'tt/37nixi

SE

1962

C.AHD

"at?

RELEASINS

Mais surry fulanon

C. King

NISDATCH

---

## Page 209

DISPATCH

ChAel of StatIon, MaXICO ClEy

SBCRB•T

PROCESSING

ACTON

MONIO FOR IMPERING

MI INDEXINE MIQUINED

KARNITURS DEJA

CAR MOGE IMOLLIDO

ABSTRACT

PISIRD

**TO

PHOM

Calere Wi Divlsion

SUBACT

LIBMPTY Project Remeral

ACTION REQUIRED DETERENCES

BAPERBNCB: HIM 17999, 31 October 1961

The LIEMPTY ProjeCt waS renoved on 12 JADuAry 1962 for a

сока f $49.500: $29.300 for FY 1962 and $20,000 fOr FY 1963.

resoual request aubaltted la HIZA 17999 uas approved ulthuur change.

Astached for the Station'o intoraarion and recorde in a

copy of. tha Devorendur preparod at Headquertera formerdiag cha Statton's

request for renoral.

Planse nore bow Headquarters broke down the cost

arructure into flacal yearo.

Next time the project is subultted lor

rancual, 18 18 requested that this breakdona do supplied by tha stallon.

END OF DISPATCH

Distribution:

" Mexico CIty, u/atta -cRoss REFERENcE to -

CLASSILICATION

SECRET

OFFICER

DAlE

DATE SAHEO

28 Jaa 1982

THE 10391

HEADQNARTERS FILE NUMBER

5008-7461

ORIGINATING

TYPIST

rmr

COORDIMATING

DALE DISPATCHED

TEXT

2555

OFFICER S NAME

AFELEASINS

J. C. King

FORM

11.10 Att

w/Registry Watt.

iWH/3Mexico/ehréno,

OFFICE

WIV/3/Mexico

arict simber

1541

N1143

RITY

RI/FI

OFFICE SYMBOL

DATS

CWHD

53

(10)

USE PREVIOUS EDITION REP ACES TORN 01DE MACH MY DE USEO

10391

DISPATCH

---

## Page 210

14-00000

DISPATCH

Chief of Station, Moxtoo C1tJ

seriesen

SBC&BP

POSt 0)

153.808

Ch108, WHI D1T1010n

SUBLECT

WEMPTY/Project Renoval

ACTON FENIRED ALIIRENCKS

ACTION REQUIRED. See below

REFERENCE.

• HAW-10074, 8 September 1961

The LIEMPTY Project uLlI expira en 30 Moreabor 1961.

Tho Station 18 roquestod to farrard 168 roguest 105 senoral do

soar so possible.

FHOESSING

ACINTY

PeTaTi 1. d 19141190,

т0 19181:8 170.1890

MIA:CHIABIIR, DESA

CAN H'OCS INTERING

A PASTRACI

END OR DISPATCH

1stribution

- Mexico E1t

DATE TYPED

DATE DISPATCNED

3 ROV 19C1

§CROSS REFERENCE FO

2. Hor 1901

DISPATCH STINK AND MUMBEH

HMMAi-10209

HEACGIJAKILHS FILE NUMBER

naratian

SECRET

Ot FiCt

WH/3/Mexico

$ 50-5-71/2

ORIGICIATING

C. T. Cadet

bal

CUUKDINATING

C/H/3/Mexico / 2555

OSTICE SYMBOL

DATE

OFICERS NARSE

RONT

1 - WH/3/Mox/Chreno

WIRI

NITY

RNFI

CATE

C/H

1-2-61.

(80)

*3 ISE PREVIOUS EDITION PIRACIS TURN BICO EASTIMAY DE USCO

RELEASiNG

sile. King

10209

DISPATCH

---

## Page 211

14-00000

-

DISPATCH

: Chief, WH Division

iNFO

FROM

suard Chief Sl Station, Mexico Clty

- LIEMPTY. Project Renewal

ACTION MOVIRLO

Renewal of Project.

REFERENCRSI

CLASUACATION

SECRETAITO

DUAILA SIMOLE ANO NO

HMM.A -17999

EAOA-930

50-6-74/1

DATe

31 October 1961

RL: 23T - (CHECK X ONE

MARXID FOR INDEXING

NO INDEXINO REQUIRED

INDEXIS CAN BE MOGED

BY QUALFIED HQ. DESX ONLY

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

of Project LIEMPrY,

30 October 1961

Attachment:

As stated above.

Even pages herewith.

Odd pages under separate cover.

Distribution:

3 → WHD (with five copies of attachmes) :

) - Piles (with one copy of attachment)

Heard curtis

RECORDS OFFICER STAMP

authorised:

210107: 2 Кары

signed: its falser

Ir destruction,

reasons and coordinato

18 appropilato.

1u5Y 53

USE PREVIOUS EDITION

REPLACES FORMAS

51.25. 51224

AND 51 20

WHICH ARE OBSOLETE

CS COPY

CLASSIPICATION

SECRET/KEJR

5ck..ux.dl

PASE NO

_CONTINUED

---

## Page 212

SECRET

jason dolled pri

CRJANIZATIONAL

ELEMENT

T. AH/3/Mexco)

PROJECT ACTION

ACTING

DOOJECT

51805109

WH

ANISEMENT

FIELD STATION

Marico City

I REDERA

18010261

BRANCH

3

CASE OFFICER

INTENSION

TIRDINATION

J. Q. Heyn

пойте но.

1013

BUILDING

Barton Hall

CONCURRENCES OF DIVISION

John Go Heya

TYPED ANNE

(And signatura)

The Stayn

Ned Pe Holman

Ropert De carter Sier D Caun ,

clarke We Simmons c

INDAPTY

DESK

Mexico

EDITASION

'2555/3162

OATE

CUP Y

MEMORANDUM ATTACHEC

YES. NO

DATE

WAN/PO/A

CAH

3203.351

Вімʼєв

644) 12-5-61

CONCURRENCES OF OTHER COMPONENTS

APPROVAL

PER 100

TOTAL ANOUNT

I December 1961 1

30 Novender 19625 49,500

SIGNATURE

DIP/PG/FI, Proj

.o: 848 101

SECRET

FY

ANOUNT

ITTE

38, 500

1963:3

20,000

SITE

50-6-746

151

---

## Page 213

14-00000

100/22-0314

SECRET

PENORA.OUY. 30.1:

SUBJION

:

Chiar of Operations, i/P

LIENPTY (Acneval)

WH - derico City

Is niecenter for renewal for

The attached profellne puriod"y

ori. nating in mi vivision,

throuch So coverber tood.

tale preject prov ces cor pipeical

curreillance pocration.

stetion ojerot.oni,

particular, thore corected

scainst soviet pursachs aud

1,ú2, and

subweet to the araciability of

inie estimato includes

13roav0 for salaidor of three

contract suent end errin incarenous agents; ragsui sor 09-

erational rigence:,

includior Or penicle oscration and main-

reinterance,

and raplaceront si photo raphic squip-

ment; and

cor maintenance of three rarenouses.

3.

ine attached requact for ronerel discusted project

scarate the pant bereau.

contract arent Cliver &

"crvin. as an investi.ator,

nes continued

to

{0110N.49 06

learn developed fron other aeratione; has

Jeen

the primar: cource of information on restdences or

soviet

imbesay percoaded; mas provided investarabars intormation oi

reveral care:

Di cI subarest; and nos tricinod carterilence

asocte

in imaterror.

He aloo handles the cinded surveillane?

tean dui ins

tre tino controet arent saman to claude (5)

was abreat

From monico.

ine projict deant under the direc

tion or sontreet drint cogaond do triads (e) continced to

collect oregationci

incoration on the dow.et incarer throush

pnotouragnic

surveillonee; and to proride cootational sudoort

SECRET

50-6-7411

---

## Page 214

SECKET

to the stab on in the form of rental of sace-quartors, counter-

surveillanes, and

procurne aud servicine

lottor drops.

Tize

Division iceis that both aspucts of the project ara worthwhile

to the station'- activities.

It considers that the project 1s

nor operating at optimum nire and does not plan to expand. In

the coming veriod eiforts will be made to refine and better

use the existing organizational arrangements.

4.

o? this

appropriate Soecial Staff elements recommend rencwal

project.

5.

I recommend renewal or Project LIENPPY as

presented.

•Од)бил

HINES

Chier, DDY/PG

Approved:

Линами

OP-00

12 dAn 1002

Date

Attachments:

Froject Cutline LIEUPTY

FI Memorandum

Staff Coordination:

for FI Starr

=s/J. Baine

For CI Starf

-s/f. Hughes

For CCG '

-s/J. Southard

SECIET

50-6-9411

---

## Page 215

987.304743

MEMORANDUM FOR, CASeS of Oparations, DO/P

THROUGH!

DDP/PO

SUBJECTS

Project LIEMPTY.

Poreign Intalligence Staff reconnends approval of the

ToRoNal Of Brojeat LIEMPTy.

Attachment

Project

W. LLOYD GBORGE

Chief

Poreign Intalligence

• ...-..

.....

'

50-6-7411

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## Page 216

14-00000

SANT

21. November 1961

LTEMPTY Project Renewal Request

amounts can be broken down as followss

FY 1962

Salaries

211,000

Transportation

1,100

Operational Expenses

3,900

Operational Equipment

500

Totals

29,500

FY 1963

15,500

900

3,100

500

20,000

It 1s not anticipated that any training will be required during

the next project year.

mergency recontact instructions for Raymond H. GERENDE an

11ver G. SCANTLING are on file at Headquarters.

This project 1s primarily a support asset and does not provide

positive intelligence.

• WH Division strongly reconmends renewal of this projoct wiúc

overs some of the most valuable investigative and suppor

assets available

to Mexico CIty Station.

- -

50-6-91411-

---

## Page 217

SECRET/KE

REVIEW OF PROJECT LIEMPTY

(For the Purpose of Project Renewal)

COVER SHEET

CRYPTONYM

LIEMPTY

STATION

Mexico Clty

FIELD CASE OFFICER 2M. lendo

Quinton N. OUSLER

CHIEF OF STATION Delard 6. Ceda

Vilard C. CURTIS

The attached project action is presented for approval for the perlod

1 December 1961 through 30 November 1962.

call

i:.

SECRETE OK

is CoPY

=.!.

---

## Page 218

14.00000

SECRETL

Revlew of Project LIEMPTY

(For the Purpose of Project Renewal)

I.

CURRENT OBJECTIVES AND PRODUCTION

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

objecives) :

"To collect upcrational Information pertaining to LIMERICK

personnel and physical facilitles.

" SCANTLING has contInued (See the

last two Project Reviews forwarded as attachments to HiMiMA-140%5,

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, is 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 LIeNvO

leads which indicate the LIMERICK people are interested i

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

request for additional detalls).

2. "To collect operational Information pertaining to other targets

of opportunity, foreign official installations and personnel of intelligence

interest operaring in Mexico." SCANTLING Is very useful for collecting

information on other Station targets:

SECRET/

---

## Page 219

SECRET ASHER

-2-

a. On the basle 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.

3. "To exploit operational leads through recruitments, debriefings,

and survelllances." 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 recruiment

nade by another Statlon agent.

b. Some additional time was devored to the Cesar

GONZALEZ Sanchez case in February 1961 when SCANTLING

determined that GONZALEZ was still in Mexico City. Sce

the last renewal for additional details on this case.

c. In connection with the above objective SCANTI.ING

has performed numerous pretext and neighborhood investigations

for the Station, SCANTLING also does most of the local

Investigations requested by ODACID and other ODYOKE

SECRET/KE

---

## Page 220

14-001100

SECRET/1336K

-3-

d. SCANTLING spent six weeks during July and

August of this ycar glving tradecraft and surveillance

tralning to LIPAILS 5 and 7 from Monterrey. Although

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

Is considered sufficlently related to mention here,

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

SCANTLING is used for miscellancous support requirements from the

Station, For example, SCANTLING Is now handling LIEMBROIL-2 and

will contInue to do so untll the rcturn of LIMOTOR -14 in June 1962. Also,

dustng the past project year, SCANTLING handled the LIRICE survelllance

team untll July 1961 when Sinon D. CLACKETT (ps) returned to Mexico

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

for other Station operatlons.

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

although SCANTLING'& LIEMPTY Project objectives can never be completely

fulfilled, It. le the Station'& opinion that SCANTLING has made important and

valuable contributions to LIEMPTY Project objectives specifically and to

other Station activitles In general, SCANTLING's production, measured

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

unquest lonably justifies his continuation as an integral part of Project

LIEMPTY.

B.

Raymond H, GERENDE Segment (discussed in relatlon to project

objectives):

1. "To collect operational Information pertaining to LIMERICK

personnel and physical facilitles through use of photographic base houses."

Three photographic bases, LIMITED, LILYRIC and LICALLA, contribute

to this objective. To avoid repetitior, 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 Statlon targets of opportunity." The LIENTRAP

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

SECRET/RANK

---

## Page 221

• SECRET/A

-4-

objective.

la addition to performing numerous photographic assignments

in support of ocher Station operations, LIENTRAP devoted neariy four

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

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

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

LIERODE rechnical 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 ard personal operational capabilities combine to make him an

extremely valuable Station asset for such support acrivities. GERENDE

also procures and services post office box letter drops for the many

Station operations requiring them.

4. 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. Relarionship to Related Mission Directive Objectives:

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

that Projec: 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.

purpose is to provide a mechanism for the development of operational

Information in support of other Station operations.

I1.

CHANGES

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

year except that SCAVTLING relinquished control of the LIRICE (formerly LIJERSEY)

survelllance team in july 1961 in accordance with previous plans.

SECRET/KEU3K

---

## Page 222

time

SECRET/S

-5-

Mil.

EFFECTIVENESS

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

validity of the remarks made In Section Ill of last year's project renewal request.

IV. PROBLEMS

The security problem in connection with the LICALLA operatlon, 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 reactivaied on 29. May 1961. The hase 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. Pasi 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 :

toral the diet elim to 55%00.0. of about $40, 500, 00, or some $12, 500,00

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

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

balance, $20, 000. 00 should be expended during Fiscal Year 1963. Normal accountin

procedures will be used for all expenditures.

SECRETA TESS

---

## Page 223

-6-

AGENT

Raymond H. GERENDE

Oliver G. SCANTLING

Louise J. MACRINO

(@ $2.02 per hour)

LIEMPTY -4

LIEMPTY-S

(@ $1.75 per hour)

LIEMPTY-6

LIEMPTY-? (No Salary)

LIEMPTY-S

LIEMPTY-9

LIEMPTY-10

LIEMPTY -11

LIEMPTY-12

LIEMPTY-13

LIEMPTY- 14

LIEMPTY-19

LIEMPTY-24 No Salary)

Christmas Bonuses 1961

SUB-TOTAL

OPERATTONAL EXPENSES

Maintenance of MIV-2279, 2284 and

2286.

Procurement of Sarehouses, post

oifice beres and renting

automobiles.

Purchase of information,

identification documents, and

bribes.

SUB-TOTAL

OPERATIONAL EQUIPMENT

Repair, ma irrenance and purchase

of replacement photographic

SUB- TOTAL

U.S. $ PER ANNUM

$ 5,520.00

5, 000.00

, 500. 00

3, 200.00

1,e1n.00

3, 000.00

2, 000.00

3, 000.00

2, 580.00

$ 39,500.00

$ 2,000.00

1,000.00

500.00

3,500.00

$ 1,000.00

1, 000.00

i.,1

r...

---

## Page 224

4-00000

rada

SECRET/KauDR

-7-

REAL ESTATE

Rent, ullities and maintenance

of following safehouses:

*LIMITED

*LICALA

LILYRIC

$ 3,000.00

1, 500.00

1, 000.00

SUB-TOTAL

GRAND TOTAL

5,500.00

$ 19,500.00

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

credited to Statlon miscellaneous receipts.

VIl.

EMERCENCY CONDITIONS

23 Nov Please ret, to has year's res at for project renewal and HIMMs-159$2,

8S CA3Y

SECRETAS.EOK

Ті ні

. :

..rà

550-8-2011

---

## Page 225

DISPATCH

CLASSINATEA

8 ВСД.ВІ

P0S11

PROCESSING

MARNIP FIR 1917 41T;

ONLY 091A119100

MARIAN: 20T645 MASA

CAN INTEN

SARSICACT

CaLer, WH DAYARlOR

SETT

LIMPTY/PrOTeCE BORONEL

CFAN REDUATO RUPARENCES

TÃO LIIMPTY ProjeCE will expire on 10 Haverber 1961. It la requested ebat

your recomandation for renoval do pouched to rasca Headquartera by l Novauber 1961.

RAD OF DISPATCH

Distribution:

2 - Mexico CIty

and arisina io

CLASSIFICATAIN

S BCABT

RI

mRegistry

wH/3Mexijo

155475*419X

DATE

Janeino

§ September 1961 8

DISPATCH SYMBOL AMD NUMBER

171957-10074

HEAOQUARTERS FILE NUMBER

50-6-74/1

ORIGINATING

AC/WH3 Mexico

COORDINATING

OFFICERS NAME

DATE DESPATONES

10x7

2555

RI/AN

R/T'

DATE

C/arlD

RELEASING

4. с!

' KING

10074

DISPATCH

---

## Page 226

DISPATCH

Chias of Stätion, Mosdeo C18y

SECRET

millisinsi

124240T F,6-850118.

MAIZE AIXA 163 10 54

CADENT

10

iN10

TROM

Chias, biHD

SUAJECT

LIBAPTY Project Reneral

ACTION REQUIRTO REIERANCES

1D74-24793, 8 April 1960

1. The LISMPTY Project Reenal was approved on 3 Fabruary I96l for a

catal 0s 853,000, 831,900 In 118002 Jar 1962 and 822,100 1n recal roar 1962.

?. No couments vera nade by the coordinating Staita.

END OF DISPATCH

Distributions

2 - Factoo City

OAtE TYPED

DATE GIS/ATCHED

13 FEbruary IS6S FEB 1967

"CROSS RITERENCE TO = --

----

DISMATCH SYMBOL AND NUMETE

HMM4-9491

MEALQUARTEHS FUE MURIBER

CLASSIFICATALY

50-6-7417

SECREI

PRIGINATING

OFFICE

Covelrun:

OFFICERS JUNE

2555

COORDINATING

OKS 516242

C4::

BR

H/3M

OFFICE STRENT

DATE

г/1%/61

(de)

•SE WEEVINUS EDITION REFACES HONDA DIDO ISOLIN ARE LE USED

RELEASING

Lau/ P. PasTon

DISPATCH

---

## Page 227

14-00000

( )

MACEUTAM

DISPATCH

Chief of Station, Moxico CitY

SECRBI

PROCESSING

ACTIN

MANNY" +: 8 1951 1156

0O INCITE MONITO

09; • QuI: 18110

CAM HIND IADING

AOSTRÁCI

71440

INtO

170м 8

ChICS, UH DIVLALOR

SUBJECT

LIERTY/Requoat 1O5 ProfeCt Reneval

ACTION REQUIALO AXPERENCES

ACTION: See palou

REPERENCE: BRAN-8913, ?3 Pebruary 1960

ProjOCt LIDIPTY expiías on 10 Moveriber 1980. It la requested that

your recommendatlon for renonal da pouched an soon as possible.

END OR DISPATCH

Distribution:

2 - Mexico City

• CROSS REFERENCE TO

OFFHE

WHl/3/Mexico

1 - Wll/3/Mexico/ChroTo OFFICE SYMNA

BR-

CLASSARATER

DATE TYPED

DATE OISFAICHED

, --

15 November 1960 16l00 s

DISPATCH SYMBOL AND NUMER

НиМЫ -9261

HEADQUAHTERS FILE NUMBER

50-6-741

ORIGINATING

Sinislander Dj CAN/sMexico

ATTENT

2555

COORDINATING

De?E

OFFICERS NAME

i?:,

V'H|3M

53

DITICE SIMEN

C/WHD

(10)

DE FRENIOUS EDITION RIFLACES FORM GIDO DARTI MAY DE USEO

DaTi

RELEASING

FIERS SINATURI

DISPATCH

---

## Page 228

DISPATCH

TO : Chief, Wil DivIsion

INTO

FROM Chief of Station, Mexico City

SUBNCT

- LIEMPTY Project Renewal

ACTION PIQUIRRO

- Renewal of Project

FITEMACASI

SECRET

TIMRIA - 15079

DTC09 - 1542

50-6-74/1

DATE

18 November 1960

MARRED EDE INDEXING

NORMING CAN DE JUDGEI

¡ QUALITICO NO DESA ONL

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

of Project LIEMPTY.

Stillars lists

16 November 1960

Attachment:

As stated above. (Even pages fontarded herewith)

(Odd pages under separate cover)

Distribution:

3 - WHD (with flve coples of attachment)

2 - Flles (with one copy of attachment)

et lain.

RECORDS CFFICER STAUP

The folloring, vetlon

sid: yes taises

reacons auri coordicate

Is appropriato.

10141

105 53

1401

ISE PREVIOUS EDITION

TEMACESPORMS

DASOLtIE

CS COPY

SECRET ESK

50-4-74/1

PACE NO

---

## Page 229

14-00000

23:3

CRYPTONYM: _ LIEMPTY

OPERATING DIVISION:

FIELD STATION: - Mexico CIty

TARGET AREA:

Mexico

HEADQUARTERS CASE ONVICER:

Charlotte L. Zehrung

EXTENSION: 2015/3a820n Hall

DATE: 13 December 1960

It is requested that the LIEMPTY Project be renewed for the

period 1 December 1960 through 30 November 1961 for a total of

$53,000; $31,900 for Aiscal year 1961 and $21,100 for fiscal year

1962. The LIEMPTY Project was programmed for $85,000.

During the

past project year, approximately $59,880 was obligated.

?. This Project provides operational support to the Station

and is not a source of positive intelligence.

Examples of opera

tional data developed through this project are given in paragraph I

of the attached Station Review of Project LIENPTY.

There have been

no disseminations made at Headquarters of intelligence produced

through LI EMPTY.

• The only training provided LIMPTY peRsonnel durdng the

eriod under revlew was given to Reymond H

training in basic flaps and seals techniques so that the Station will

have a trained agent outside the Station who will be able to provide

this service if required.

No further training for GRRENDE of any of

the other LIEMPTY agents is being contemplated for the coming year.

Attached for the informution of the Staffs is a dispatch

from the Station (HMMA-14793) dated 8 April 1960 which answers the

questions raised at the time of the last renewal,

5. With reference to Paragraph VII, Emergency Condition

contained in the attached Project Revlew, the Mexican desk has or

record in the permanent file of Raymond H, GERENDE and Oliver G.

SCANTLING, the details of emergency recontact instructlung whlch

have been agreed upon between the Station and each Agent.

SEG T

---

## Page 230

14.00000

SES.AT

- 200

It Is requested that the LIEMPTY Project be renewed on the

bania of the attached Project Revlew.

COORDINATION:

Approved for Transmital :

mediAlis

erson, WaD ProJ. OffIce

Sidesher/n

M/ 30/66075

ATTACUMENTS: (4)

Porm 680

Folder with past renewals

---

## Page 231

SAUREN /

REVIEW OF PROJECT LIEMPTY

(Por the Purpose of Project Renewal)

COVER SHEET

CRYPTONYM

LIEMPTY

STATION

Nexico City

CHIEF OF STATION

OU SLER

Millars Soluti

The attached project action is presented for approval for the

period 1 December 1960 through 30 November 1961.

.. -4444. 15999

CS COPY

tc.14/1

---

## Page 232

4-00000

SECRET/S

REVIEW OF PROJECT LLENPTY

(For the Purpose of Project Renewal)

CUR TENT CBJECTIVES AND PRODUCTION

doi

1. "To collect operational information per

taining to LIMERICK personnel and physical

taining to the above objective.

a few exanales of SCANTLING's productions

A detailed casing of the LIMERICK

electrical power supply was forwarded

to resdquarters as an attachment to

12 February 1960.

HIA 14496 this type of operationa pra

duction of

intormation, which takes several weeke

to compile accurately, Illustrates the

talenta possessed by SCARTLING

together with his valuable contributions

to the Station's operational information

SCANTLING has been used frequently

follow up leads produced by LIFEAt/

LINSKICK (now produced by LIENVOY).

example, in May 1960, LIFEAT indicated

that the LIMERICK target was having con-

siderable contact with an AGENCIA ROBLES

concerning the handling of ircoming and

was able to provide the

Station with additional pertinent information

about the address, owner and type of business

engaged in by the

Such information

then becomes readily available for exploitation

a'LIVERICK shipment of particular

Interest come to the attention of the Station.

SCANTLING is

the station's primary

investigative

asset for keeping

track of

current residence addressees of LIMERICK

persornel.

the station considers it important

iron the counterespionage standpoint to main

tain

incormation on the location of all

IS COCY

Thirtini

50:6.÷:1/1

---

## Page 233

14-00000

TIERICK residences.

targeto are contirually considered for LICOO

A recent example of SCAITLING'g

efforts in this correction nould be the spot

tiny and acquialtion of the LiMOrOR base in

Bame apartuent building with LITALOr: -1.

Contributions of this type operational informa

tion are quite time consuring due to the

necessity for checking out several apartment

a LIMbRICK individual may initially be

considering as a residence.

"to collect operational information pertaining to

Other targets one or intelligence interest operating

foreign official Installa-

tions and

in Mexico."

Ag indicated below,

extremely

useful for collecting information on targets

than LINKRICK:

In March 1960 SCANTLING was instrumental

In locating property adjacent to the untabay

installation wiich the Station has since

rented in anticipation of initiating photon

graphic and technical operations.

SCANTLING

was able to accomplish this assignment only

after a thorough casing and pretext investi

gations of the several pieces of property

appropriate for such operationg.

SCANTLING is also used to follow up

sensitive leads in conrection with LIFEAT

and LIENVOY production from LIIABBY and

eister targets (see example as to type

under 1, A,, b and e above).

SCANTLINE was nesd as en investigetive

reset to deternire the local address and

3. "To exploit operational leads through recruitments

debriefings, and surveillances.'

As examples of

SCANTLING ' 8

contribution to this objective, the

following cases are listed:

attempts to Incate Cesar

GONZALEZ Sanchez, a knora agent of & Com

murist, Country.

He followed various leads

GOnZALEZ from larch to august 1960 defore

---

## Page 234

4-00000

UNZALE" was finally identified snd hi

exico City home aid business addresses wer

sscertnined.

See FANA-15626, September 1960,

for further details on this case.

the prelimirary investigative work on &

NUSUDA cace of priority interest was conducted

KY SCANTLING.

During this investigation it

was necessary for sCArillld to travel to

Aquascalientes, Guarajuato and Minatitlan to

obtain the information required by Headquarters.

See the attachments to Hnt-1416,

20 May 1960,

for the results of the investigation.

40

In addition to his contributions to the above objec

tives,

SCANTLING 18 used for miscellaneous suprort

requirements of the Station.

For example,

SCANTLING

hardled several of Rayrond H. GERETE's (ps) operationa

nile the latter was away iron mexico city durint Auguat

and September 1960.

SCANTLING has been managing

the LIJERSEY surveillance

Also team airice the departure of

Simon D. CLACKETT in Auguet 1960.

It is hoped that

SCANTLING can be relieved of this assignment as soon

as the LITENPO project is approved.

SCANTLING has also

been used to spot and rert safe houses for various

Station operations, a valuable operational support

service.

As stater in the preceeding Request for project

Renewal, al though SCANTLING'S LIE.PTY Project objectives

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

opinion that SCANTLING has made important and valuable

contributiona to LIENFTY Preject objectives specifically

arid to other station activities in general.

SCAN TLING'&

produstion, measured against ronetary expenditures,

case officer time and other intangible lactors, unjus

trade titled he continuation as an integral part

Became a CaRD Segment ise de celation to project

1. "Fo collect operational inforration pertaining to

LIVERICK personnel

and physical facilities through use

of photographic base houses."

Together wd th their

extensive photographic coverage of

the LIBRICK, target,

the photographic bases

also contribute other types of

operatioral information:

8 LIMITED - This base corpiles daily logs

Indicating all arrivals,

deprtures and,

where possible, identities

of erery person

visiting

or working at the LINTICk target.

---

## Page 235

"SECRETA

- 4-

This Information is particularly useful in keeping track of

LIMERICK personel and assisting with the identification of

visitors to the installation, Also, LIMITED maintains a

summary attendance list of LIMERICK employees on a dally

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 LLEMBRACE survelllance

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

Station 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 certaln day. The base was alerted

to dispatch the radlo-controlled survelllance team on any

person appearing to be an American,

The results of this

assignment were indicated in MEXI-6392 and several other

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-I4, prepares weekly

reports on LIMERICK empioyees and their wires, TILYRIC

aisu performs the assignment of noting and reporting the

Ilcense plate numbers of all cars bringing visitors to the

LIMERICK installation. LILYRIC photograplis also are con•

centrated on visitors to the target, as opposed to employces

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 to darkness each day

except Sunday.

SECRETA

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## Page 236

14-00000

SECRET/*

- 5-

LIEMPTY-9, supplies extremely worthwhile information

pertaining to the apparent positions and jobs of the target

employees. Me accomplishes this objective by careful

observation and analysis. LICALLA also maintans a dally

attendance roster of all LIMERICK employees. LICALLA

coverage of the target, both photographic and physical

abservations, enables the Station to keep abrest of LIMERICK

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

esplonage effort.

2. "To collect operational Information and Identify operat lonal 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 lake photographs and to perform

pretext Investigations in support of numerous Station activitles. The

cases listed below are cited as examples:

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

LIENTRAP was able to procure photographs of GONZALEZ, at his

Maxico City residence which, when compared to Headquarters

provided photographs, left no doubt that CONZALEZ was the

subject of interest to Heudquarters.

b. LIENTRAP confirmed the Identity of Olga CASTILLO de Ledon,

& frequent visitor to the LIMERICK Installation and an ardent

supporter of the present Cuban regime, through a pretext

investigation of the residents of an apart ment huilding where

CASTILLO was belleved to live. Later, LIENTRAP supported the

results of the investigation with excellent photographs of the

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

hotel roorns and apartments, and conduct counter-survelllances."

GERENDE is used frequently to rent hotel rooms and apartments for

other Station operations and actlvities, 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 office box letter drops for the many

Station operarions requiring them.

SECRET/SOR

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## Page 237

14-00000

SECRET/N

-6-

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

expended on this segment of the LIEMPTY project la worthwhile and

should be continued in vlew of the quality and quanilty 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 LUJERSEY survelllance team under the

direction of CLACKETT began contributing to the Station's support

efforts through pretext Investigattons and physical survelllances. Some

examples of the ream's work are listed below:

a. Rafael TISCHLER Guzman (201-64372) Is a Guatemalan

Communist which the team had under survelllance from

November 1959 to April 1960. The survelllance, together

with information acquired from other sources, eventually

resulted in an unsuccessful recruitment attempt on TISCHILER.

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

Dominican of interest to the Station. The LIJERSEY ream

devoted portions of five momhs, 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.

LUrEL was ialer deported from viexico through the efroris

of LITEMPO-2.

d. CLACKETT and the LIJERSEY team performed numerous

pretext Investigations on Station targets of opportunity and or

hree 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.

SECRETAUR

---

## Page 238

II.

SECRE TYS

-7-

3. In vlew 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 will

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 justliled.

• D. Relatlonship to Related Mission Directive Objectives:

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

many Statlon 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 becn 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

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 LUERSEY cam on a regular basis;

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

permit the Station lo cunihue iù profit from CLACKETT's past efforts.

B. Oliver G. SCANTLING

Since CLACKETT's departure, SCANTLING has been handling the

LYERSEY team as an Interim measure pending Headquarters approval of

the LITEMPO project.

SCANTLING has been exposed to, and Ilkewise

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

known to L-20 only by an alias.

---

## Page 239

SECRETA

- 8-

C. Personnel Changes

1. LIENPTY-15 - Member of the LIJERSEY surveillane ream -

Transferred to Project LITEMPO and cryptonym changed co

LITED-Z.

2. LIEMPTY-16 - Member of the LIJERSEY surveillánce ieam -

Transferred to Project LITEMPO and cryptonym changed to

LITED-3.

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

(cam - Transferred to Project LITEMPO and cryptonym changed to

LITED-1.

4. LIENPTY-25 - Most recent addition to the LIVERSEY surveillance

team. Transferred to Project LITEMPO and cryptonym changed to

LITED-*.

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

project, excepting the resignations of Simon D. CLACKETT and

Wilma J. FIORDALISL

EFFECTIVENESS

A.

General comments pertaining to the value of the projec efforts to the

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

as good as the support mechanisins backstopping and contribuing to them.

The availability of unilateral support agents and organizations, such as

the LIMITY Projeci, to investigate leads and to collect operasional

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

counterespionage objectives. The Station would be seriously handicapped

in its operational activitles should the support services of suca agents as

GERENDE, SCANTLING and the agents under their control be suddenly

made unavailable.

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

espionage acrivities directed against the LIMERICK targei require detailed

knowledge of the identity, activities and felloir associates of LiMERICK

personnel, The LIEMPTY photographic basehouses undouprecis provide

more of this type informarion than any other Station operation.

production from LIEMPTY photographic bases and from the LIENVOY

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

SECRET.

---

## Page 240

14-00000

SECRET/

- 9-

C. Targets of Opportunity - The immedlate avatlability of independent

assets 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.

Icits 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 operattonal Interest and

apartments and hotel rooms can be acquired in fictitious nanies In

support of sensitive operations and activitles.

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

IV. 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 suspictous actions which might Indicate that LICALLA

has been compromised to LIMERICK personnel; however, such a

posstbility will exist unti) the release of the three technicians. No

other security problems have occurred during the past year.

V.

PLANS

A. Processing of Photographs - During the past year considerable

progress has been made in the Station's handling, l.e., 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

basts during daylight hours with poor results. Almost invariably, prints

SECRET,

---

## Page 241

VI.

SECRET/K

-10-

from HY-PAN negarives 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 phorographs 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 Projesi LITEMPO reduced Project LIEMPTY activities by an

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

expand present LIEMPTY activities.

COSTS

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

LLEMPTY expended $19, 120. 91 during Fiscal Year 1960 (L 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 l1

months of the projeci year to approximately $5U, 000. 00. An additional

$4, 000. 00 will be obligated during the I2th 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 toral $53, 000. 00 budget, itemized below,

$31, 900. 00 should be erpended during the remainder of Fiscal Year

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

Year 1962. Normal accounting procedures will be used for all

expenditures.

SECRET /dent

---

## Page 242

14-00000

SECRET/&

-11-

AGENT

Raymond H. GERENDE C - 32143

Ollver G. SCANTLING C- 26863

Loulse J. MACRINO "41452

(@ $2.02 per hour)

LIEMP FY-4

0572

LIEMPTY-5 C-55482

(@ $1.75 per hour

LIEMPTY-6

C.2494%

LIEMPTY-7 No Salary d. Siess-

LIEMPTY-8

c-sic74

LIEMPTY-9

0.564.4"

LIEMPTY-10 6 - 5598

LIEMPT X-11

0.41438

LIEMPTY-12 C - 36224

LIEMPTY-136-46445

LIEMPTY-14 6. 41168

LIEMPTY-19 c. 74579

LIEMPTY-24 No Salary c-75022

Christmas bonuses all personnel

SUB-TOTAL

OPERATIONAL EXPENSES

Ma intenance of MV-2279, 2284

and 2286.

Operational Travel

Procurement of Safehouses, post

office boxes and renting

automobiles.

urchase of information,

dent tication documents, anc

bribes.

SUB-TOTAL

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

1,800.00

1, 800. 00

1, 000.00

2, 500.00

$ 38,000.00

$ 2,000.00

500.00

2,000.00

2,500.00

$ 7,000.00

---

## Page 243

SECRETS

-12-

OPERATIONAL EQUIPAENT

Repair and maintenanceof

camera equipment.

Purchase of replacement

photographic equipment and

supplies.

SUB-TOTAL

$

500.00

2,000.00

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 requiremeu listed in CSI-F No. 230-60, Anner A, for

communications arrangments in the event of "Emergency Conditions."

the Station does nor anticipare that this project would or could continue

to function under is present objectives. However, both principal

agents, SCANTLING and GERENDE, would very possibly be worthwhile

sources of information to maintain contact with under any adverse

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

Ideology, motivarion and perspective, more as Americans than &s

Mexican nat lonals (which they are). It is reasonable to assume, there-

fore, that SCANTLING and GERENDE would become valuable contacts

in any emergency situarion.

SECRET BEATSK

ES GUrY

!. 7:

---

## Page 244

SECRET/

-13-

The Statlon 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

situatlons. This information will be forwarded separately.

SECRETY eX

5=624/1

---

## Page 245

COASSAROTION

TO

INTO

DISPATCH

8 Chlas of Statlos, Mexico Gity

SSORSI

1984H-8575

506-767

FROM

DaTE

SUBISCI

- LIPTY Projoot Renoval.

AcTIoN HouR Paragraph 2 = Pleass rusalt detalled revion of

unafulnass and valus al tha photo basahosson.

REFERENCES,

Are thras JustifledT

5014-14093, 13 screaber 1959

16-701-INCH-T ONES

MARKED FOR INDEXING

NO INDEXINÓ RIQUIRED

INDEXING CAN DE JUDGED

BY QUALIAILO NO DESK ONLY

1. The LIMPTY Projost was razaved on 8 January 1960 for the

aried 1 Deosmber 1959 through 31 Movembor 1960 for a total of $84, 9201

48,485 80R Maoal Joar 1900 and 836,125 for flacal your 1951,

2. Tha fallowing start cumenta vare nado during tha ranoval procosal

RuDESt noton that the GI valus of the projoct 18

¿1sflenlt to judgo since it appanry that mich of the naterlal

produoad renatas 1u tba Station for explaltation, Horses,

KwDisK ranarks that the valus of the projout should bo Incrosood

shen tho CLACKETT survalllenos tean entora into aotive operet1oa.

HIDESI suggesto that sho Station be quarled as to tha protoxt os

oframetanoss under walch SCANTLIND frequently Vlalts Inos Prreda

do loreno, tha aceupant of the proporty adjacent to the serlos

anstallatien.

EUT UR/OPS notes that unile the projact review presente

a clear ploturo of the alas and abjnotivos of tha various tog

It deas not provide, exeept in the case of SCALINa,

doralled indiention al the valus or usafulnasa of the other cog

manta, partloularly the photographlo aotivity.

KUTUBE/OFS

roquests that the Station provide such as appralsal dirlag the

first quarter of 1960.

KUTUES/OPS rosemands strongly that the

photo coverago be rovlorad fras the standpotat of value and uso

fulnoss with a vlou to doteruining hather the LIlIRIO cotlvity

could not bo safaly aliminsted and the additional photographlo

covorage conducied on si nons salectivo baste, withet satorially

affarting overall usefulnass,

sUTUBB/OpS notes that, In the

abcancs al farthar proat of usefulness, the color photograpiy and

moving ploturs appoar to ba an unpacessary llairy.

castends tha careful handling of the ClACKETT sagagat and roguesta

that tha nest projoat-sotlon include examplas al the toa's

3. Tho IVA approval for tha additional vohlale vas farwarded under

Diapatch Ho. IMS-1211.

The AV mader assigned by JBBCHO de MV 2320.

Tha uonal Delogation of Prooureseat authority la being fararded by

JBECHO chamals.

OLIVER D. GALBCHO

19 February 1960

Pistridutions

3 - Mardoo City

1 - :7:/1:a1lroom

1 - 1l/L0g

1 - 1/3 Mexico Chrono

LOTTI: Ih

ювм

19s' 53

- SE PREVIOUS EDITION

ВЛАСТВОКА

HE SI MA ASD S139

AHiCH ARE DOSDiETE

SECRET

1574,56

3001

PAGE NO

CONTINUEO

---

## Page 246

4-00000

CLASSECATON

TO

1790

DISPATCH

Chief, Wli Division

DRIPATEN SIMODI ANO NEI

HMMA -14093

27F0K-1733

50-6-74/1

DATE

FROM

SUBJECT

Chief of Station, Mexico City

Renewal of Project LIEMPTY

ACTION PIQUITED

Renewal of Project LIEMPTY

REFERENCEASI

13 November 1959

HE. "AJ.J" - (CHICK "N' ONE)

MARKED FOR INDIXING

NO INDEXING REQUIRED

INDEXING CAN DE JUDGEO

BY QUALVILD MO. DESK ONLY

Attached is a review of Project LIEMPTY activitica during the past year.

Renewal of the project is requested.

Stillard Creas

Willard C. CURTI

10 November 1959

Distribution

-3 Figo w/s coploa of attachnient

RECORDS OFFICER STAMP

5 Denia I taxis

Noto:

Tr deitratlon

cito

ruaiis in: coordinato

it appropriato.

CUSSIICATION

50-6-141/1

TRAGE NO

WHICH ARE S

---

## Page 247

1_-720.608

MEMORANDUM FOR: ChioS, PI

SUBJECT

Projoot LIMPTY

Renewal

HSADQUARTERS CASE OFFICER

Man 22 aren

Fixt, 2555

Date 9 December 1959

It la roquested that the Lllity froject be renewed for thi

poriod 1 Decamber 1959 through 30 November 1960 for & total of

$84,910.00; $48,485.00 for fiscal year 1960 and $30,425.00 fOr I'lacal

year 1961.

LINiPTY was last approved for the period 1 December 1958

throügh 30 November 1959 for a total of $95,380; of which 1t 10

ostinatod $74,259 has boon obligated,

- 2. It Is requested that the Project bo rerewed on the bagle

of the Projoct review prepared by the Station which is attached.

3. The security incident referred to in paragraph IV.B on

page 6 of the attachment,

occurred on 20 September 1959.

while on

an oporational assignment LISMPTY/10 and the LIENTRAP vehiole wore

temporarily detained by the Sorvicio Secreto de Mexico (Moxican Secret

Servico). At the time of the incident the LIENTRAP vehiclo vas

carrying out an assignment of photographing a Cuban rally which 1t

was expected would be attended by many of the leading Mexican and

Central American Connunists. The polica were also covering the

meeting for the purpose of preventing a Commist-inspired demonatra-

tion and they searched LIENTRAP balleving it might contain Communist

propaganda.

When they saw the film they seized the film, the truck and

LINIPTY-10 with the belief the Communists had filmed some rough-handod

techniques used by the police against some persons attending the rally.

LIENPTY-10 was held under unofficial custody for approximately 26 hours

before his reloase was obtained.

When a member of the Station using

State Department covor. intervened with the polica on behalf of LIMiTY-10,

the film,

LIENTRAP, and all the equipment were also returned in taot.

LIENFTY-10 hed not been. Interrogated and had not been formally charged

or booked.. Although the FBI representative and the U.S. Embassy Security

Officer also learned of the incident, the Station does not believs that

this Inoldent has materlally effected the security of the Project.

Station, however, 1s allowing a one month's cooling off period for the

•LIENTRAP vehicle and LIEHIPTY-10.

Attachments:

Project review (in quad)

envelope with past renovals

Meno Justification of Purchase

of Auto

Form 680 (in quad)

Envelope with true namse

14x1154

---

## Page 248

14-00000

SECRETI

CRYPTONYM

LEMPTY

STATION

Mexico City

PROJECT REVIEW

FIELD CASE OFFICER SAY DISLER

CHIEF OF STATION Killand i sh

Based on the attachod REVIEW OF PROJECI LIEMPTY, it is requested that

the Project be renewed for the period 1 December 1959 through 30 November 1960.

SECRETE

50-6-8411

-..-.

---

## Page 249

ri5.

SECRETE

REVIEW OF PROJECT LEMPTY

(For the Purpose of Project Renewal)

I.

PRODUCT OF THE PROJECT

A.

Oliver G. SCANTLING Segment (discussed in relation to project

objectives):

1.

"To collect operational information pertaining to LIMERICK

personnel and physical facilities." During the past year SCANTLING has devoted

a gignificant amount of time to the furtherance of this project objective. Although

other Station operations and personnel are also concerned with his collection of

operational information about LIMERICK personnel, SCANTLING's contributions

are unique as to type and complement information received from other sources. For

example, SCANTLING is used primarily as the source of information about LIMERICK

physical facilities. He is constantly on the alert for building modifications, con-

siruction activities and the kinds of outside services utilized by the LIMERICK

installation.

He regularly visits Inez PARADA de Moreno, the occupant of property

adjacent to LIMERICK, for the purpose of obtaining a close view of the interior

grounds of LIMERICK and to debrief Scora de Moreno about any unusual activities

which she may have observed. At the present time SCANTLING is preparing a

thorough casing report on the electrical power supply used by LIMERICK and all

other residences and establishments in the game block. This operational information

is intended for KURIOT's use and will show all transformers in the block, electrical

meters for measuring the amount of electrical power used and the precise points

where wires enter each property.

Because of his other sensitive activities and

because other operational activities provide adequate coverage, SCANTLING

has been used sparingly for physical surveillances and investigations which might

conceivably impair his future usefulness to the Station. During the time he spent

training Simon D. CLACKETT (ps) in radio controlled mobile surveillance,

SCANTLING did perform some surveillance work at the LIMERICK installation;

however, it was concerned mostly with briefing CLACKETT on dispatching tech-

niques and the procedures used for the control of several vehicles on a surveillance

team using two-way radios.

"To collest operational information pertaining to other targets of

opportunity, foreign official installations and personnel of intelligence interest

operating in Mexico." By far the most important contribution made by SCANTLING

in connection with this project objective has been his support to the LITACIT

operation and just recently actually gained entry to the LITACIT target using a

During this visit SCANTLING managed to collect highly

pluable operational information about the security of the installation, which has

added materially to KUBARK.'s knowledge about terrget. SCANTLING has also

cased and prepared reports on the LITABBY target in anticipation of mounting

SECRETEN

---

## Page 250

14-00000

SECRET,

a photographic surveillance and in initial preparation for a future LINIMENT type

activity. SCANTLING has performed investigations of numerous other Station

targets of opportunity which, depending on their significance, have been reported

in separate correspondence.

3.

"To exploit operational leads through recruitments, debriefings

ind surveillances. " This objective was included in the LIEMPTY project becaus

SCANTLING is used to follow up LIFEAT leads and leads obtained from the LIEMPT!

photographic bases. During the past year SCANTLING has investigated a quantity of

leads obtained from the above sources. The information resulting from these in-

vestigationa las anabled the Station in maintain current data on the various firms

used by the LIMBRICK target and in one instance, Octavio VIDALES (201-

).

caused the Station to make a recruitment pitch in an effort to carry out a technical

penetration of the LIMERICK target. Although VIDALES was not recruited, the

Station anticipates that SCANTLING will some day be successful in just this type of

activity. SCANTLING is the Station's principal source for the follow-up of LIFEAT/

LIMERICK and LIEMPTY photographic base house leads as they pertain to the

primary target.

4.

Not covered by a specific project objective but, névertheless, of

significant importance to the Station are SCANTLING's contributions to the overall

Station support efforts. In addition to the extensive training given to CLACKETT.

SCANTLING also prepared a detailed and sophisticated radio dispatch procedure for

use by the LIEMBRACE surveillance team. He devised a superior method for

numbering streets which enables the radio surveillance team to specify a location

without reference to street names and arcas. The entire radio dispatch code, when

used properly, practically defies identification as the conversations of a clandestine

surveillance team. From the standpoint of Station security, SCANTLING conducted

an investigation of LIVESTOCK-2 based on two leads which were 30 years old and

reported significant information which contributed to the Station's final decision

to terminate LIVESTOCK-2. SCANTLING's other support activities consist of renting

hote! rooms and apartments in fictitious names, supporting operationg such as

LICOOL-12 by performing sentry duty and by serving as a capable and responsible

cutout between the Station and agente from other geographical areas.

5. Although SCANTLING's LEMPTY 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

objectives):

SECRETI

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## Page 251

SECRETAK

.3 =

"To collect operational information pertaining to LIMERICK

personnel and physical facilities through the use of photographic base houses."

This continuing objective is carried out by three photographic base houses.

LIMITED, LILYRIC and LICALLA. During the project year, LIMITED produced

approximately 3600 photographe and LILYRIC about 4500 pictures of individuale

entering. and leaving the LIMERICK target. Most of these photographs were of

nOn-LIMERICK individuale of which only a small, but significant, percentage

could be identified through license plate checks or other types of routine investi-

• gation.

The LICALLA base produced approximately $300 photographe during the year.

Most of the LICALLA photographs were of LIMERICK employees and thoir families

and have been of considerable value in maintaining current and accurate listings

ni LIMERICK personnel in Mcxico. Tho LICALLA bade has recently begun taking

motion pictures of LIMERICK personnel conversing in the garden area.

Thege

movies are being forwarded to KUTUBE/D for the possible exploitation of lip

• reading analysis. ' The LIMITED base, in addition to its photographic assignment,

is also used as the radio central for dispatching the LEMBRACE surveillance

team on LIMERICK personnel targets. All bases make routine reports on the daily

attendance of LIMERICK employees at the installation which facilitates the Station's

reporting on the arrival and departure of LIMERICK personnel, Also, the bases

devote time to reporting the personal associations among the numerous LIMERICK

employees. Some of this latter type information is valuable from the standpoint of

confirming that LIMERICK intelligence officers have a tendency to associats with

their colleagues.

"To collect operational information and identify operational

leade pertaining to Station targets of opportunity." This in a broad objective

and one which is contributed to by the LIENTRAP operation.

LIENTRAP iB used

to provide photographic coverage of important Station targets which do not justify

a more permanent photographic bage. During the period under review, LIENTRAP

has been used for the timely coverage of various Central American exile group

activitica, the Confederacion de Trabajadores de la America Latina (CTAL)

-headquarters, several counterespionage targets, the LITACIT and LITABBY

targets and other one-time operations of intelligence interest. The operational

information produced by LIENTRAP is used by the Station for increasing

operational knowledge about a target and, when appropriate, has been incorporated

in separate reports to Headquarters with other information about specific targets.

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

hotel rooms and apartments, and conduct counter-surveillances." GERENDE,

because of his area knowledge and operational acumen, is used frequently by the

Station for renting hotel rooms and apartments in fictifioug names for use on other

He is also the Station's principal procurer of local Post Office

boxes for use as letter drops. This objective pertains entirely to the operational

support of other Station operations and is an invaluable ingredient to the security

of important Station activities.

SECRETARI

---

## Page 252

4-00000

petty

SECRETE

S02334

The production of operational information as represented by

LINITED, LILYRIG, LICALLA and LIENTRAP in an important adjunct to the

Station's coverage as the LIMERICK target and Station targets of opportunity.

¿ is the Station's conclusion thas the expenditure of KUBARk assets, j.e., mone

and case officer time, is justified and that these activities should be continued

C. Simon D. CLICKETT Segment (discussod in relation to project objectives):

1.

"To callect operational information and tu identify operational

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

little production has been realized from this objective in serins of CLACKETT's

contributions. CLACKETT returned to Mexico in early April 1959 after receiving

surraillance, tradecraft and photugraphy training in Headquarters. He then spent the

sest os April, May and part of June being trained by SCANTLING in mobule sur-

veillance techniques. Then LIEMPTYa 15, ló, 17 and 20 were placed under his

supervision and he began training these agents in the arts al foot surveillance and

mobile surveillance.

This team, known as the LIJERSEY team, is just beginning to

show the excellent eitects of CLACKETT's intensive training sessione. Although

LIENIPTY-17 has resigned and the team consists of only four agents, including

CLACKETT, the Station believes that the tean will be ready within the next month

to begin its contributions to the above objective.

2. Based on the training time deroted to CLACKETT and to the LIJERSEY

teaii and the anticipated production during the coming project year, it is the Station's

opinion that this activity should be continued.

II.

EXTENT TO WHICH THE RELATED MISSION DIRECTIVE HAS BEEN

FURTHERED.

Project LIEMPTY has provided support, in varying ways, to a majority of

Station operations and in this manner has been a contributing factor to the furtherance

at the Related Mission Directive. The project is not intended ror designed to

produce positive intelligence; its sole purpose is to provide a mechaniam for the

development of operational information in support of other Station operations.

ш.

PROGRESS OF THE OPERATION AND PLANNING FOR THE FUTURE.

A. Oliver G. SCANTLING Segment:

1. SCANTLING's duties and responsibilities are basically the same

now as they were when the original LiEMPTY project outline was submitted. Since

SCANTLING is the only major factor in this part of LlEMPTY, progress, other than

covered in the above

section on production, can be measured valy by the fact that

SCANTLING is a year older and has acquired a jew more beipiúl tricki of the trade

SECRETI

---

## Page 253

SECRET/ME

=5 .

and, consequently, has increased his own operational abilities.

• 2.

Insofar as future planning is concerned, SCANTLING will

continue to devote the greater portion of his time to the LITACIT operation. In

addition, he will continue his work against the LIMERICK target, i.e., investi-

gating LIFEAT and photographic base house leads in connection with the objectives

of the LIEMPTY and LIMESA projects.

The Station still plans to maintain

SCANTLING as an independent Station asset free from the responsibilities of super-

vising other agente and operations.

3.

SCANTLING will probably continue providing administrative

support to LIEMPTY- 3 (now covered under the LICOOL project), but will not be

responsible for the operational direction af L-3.

в.

Raymond H. GERENDE Segment:

1.

During the past year the three photographic base houses have

been trained in the use of a faster type film (HY-PAN) to facilitate the taking of

photographs on dark cloudy days. One base, LICALLA, has made tests and recently

begun making 35mm color slides using the new fast type Ektachrome film. This

film is now processed in the Mexico Station dark room which heretofore was not

possible. It is the Station's opinion that a few color photographs of target personnel

will be useful for identification purposes. The LICALLA Base has also, during the

past year, begun taking 16mm motion pictures in color with the expectation that

Headguarters can eventually provide lip reading analysis of conversations taking

place in the garden area of the LIMERICK installation.

2.

Other operational progress has been made in connection with

relieving GERENDE of responsibility for the LIJERSEY surveillance team. This

now leaves GERENDE with a sufficient amount of time to supervise all photographic

base houses, LIENTRAP and the outside photographic laboratory.

3.

Future planning in relation to this segment does not call for

expansion. Rather, the Station plans to perfect some of the photographic procedures

now in use and to experiment with night photography possibilities using the fasi

IY-PAN film with telephoto lens of varying lengths.

GERENDE will also concentrate

on increasing the security and communications procedures used with each base.

C.

Simon D. CLACKETT Segment:

1.

CLACKETT's assumption of responsibility for the LIJERSEY

• surveillance team has been a progressive step for the development of an additional •

and much needed support ascet. Although the LIJERSEY team has been in existence

fur several years, it was only during the past year, with the assignment of

SECRETE

---

## Page 254

14-00000

SECRET/S

- CLACKETT, that an intensive effort was made to train the team members and to

i place them under the supervision of a full time team leader. As mentioned above.

CLACKETT has done an excellent job during the past few months in getting the

team ready for future operational assignmenta.

2.

The Station plans, during the coming year, to increase the

strongth of the LIJERSEY team by at lcast two agents and one car. This would

then give a total LIJERSEY comploment of six agents and three radio cars. The

Station will continue to take all necessary precautiong not to rush the development

of the team nor to give it assignments which are too complicated and too difficult.

It is anticipated that the team will begin some surveillance work within the next

month on targets connected with plans for an expanded Communist Party pene-

tration prograni.

Iv.

PERFORMANCE OF PRINCIPAL AGENTS IN TERMS OF PRODUCTION,

SECURITY AND COVER.

• 8/16a%

Oliver G. SCANTLING - As should be expected from a well trained

and motivated agent,

SCANTLING's production during the period under review was

excellent.

His production is in the category of operational information rather than

positive intelligence and is based on leads and investigations given him by the

Station. He never fails to do a thorough and detailed job on all assignments

given to him.

He is an unusually valuable, principal agent. There have been no

security problems or developments during the past year in connection with

SCANTLING's assignments. Likewise, his cover is very good and places him

in a position to maintain his work for KUBARK for many years to come.

Raymond H. GERENDE - Since GERENDE's marriage in December

1958, his performance has improved to a marked degree. He has become one

of the Station's most dependable agents in terms of promptness for meetings,

completing operational assignments as rapidly as possible and in doing any task,

regardless of how menial it may be. Insofar as the Station and GERENDE know,

his cover with LISTERINE's firm has held up very well. In fact, GERENDE

recently was able to negotiate a sales contract with a customer having a very

large sales capacity for the product manufactured by LISTERINE's firm. This,

of course, endears GERENDE to LISTERINE in addition to contributing to

GERENDE's cover employment. The only significant security incident pertaining,

in part, to GERENDE was in connection with LIENTRAP (please see HMMA- 13951,

ló October 1959, for details).

Simon D. CLACKETT - CLACKETT's performance has definitely

measured up to the standards expected by the Station. He has proved that he

is conscientious, dependable and very quick in grasping the details of clandestine

activities. He will undoubtedly continue to improve his personal performance as

SECRETA

---

## Page 255

4-00000

SECRET

• 7.

he gains more experience. There have been no security problems or incidents in

connection with CLACKETT's assigament to this Station. Although the notional

cover provided by Headguarters has held up very well during the past few months,

the Station had hopes of placing him in LILABEL's firm and obtaining Inmigrante

papers for him. However, for reasons mentioned in other correspondence, this

cover arrangement did not work out. The Station is continuing efforts to locate

another suitable local cover job for CLACKETT.

CONTACT, AND COMMUNICATION.

Oliver G. SCANTLING - The Station Case Officer meets with SCANTLING

on the average of three times each week. For regular meetings, a toral of eight

prearranged contact points are used alternately with SCANTLING "walking the beat"

and being picked up by the Case Officer in the latter'e car. This procedure enables

both the agent and the case officer to check themselves and to check each other for

possible surveillance.

Meetings are generally of short duration, seldom more than

30 minutes, and are held in the car. It is possible for SCANTLING to get in touch

with his case officer by telephone, and vice versa, in case an unscheduled meeting

is necesa. SCANTLING and the Station arè currently working on the detaila of

an emcrgency means of contact utilizing SCANTLING's wife's relatives in PBPRIME.

Headquarters will be advised of these arrangements to facilitate contact with

SCANTLING in the event Mexico is overrun by hostile forces and contact with the

Station is severed.

B.

Raymond H. GERENDE - GERENDE's Case Officer meets with him five

times each weck. Meetings are conducted in the Casc Officer's car using the same

• procedures as outlined above. GERENDE and his Case Officer have a total of 11

contact points in different areas of the city and generally hold their meetings during

the early morning hours, usually about 0800. As in the case of SCANTLING,

GERENDE and his Case Officer are preparing an emergency contact procedure which

vill facilitate Headquarters communications with him through his relatives in PBPRIM

Headquarters will be advised of these arrangements just as soon as they are completec

C. Simon D. CLACKETT - The Station Case Officer meets with CLACKETT

on the averageof three times each wee!

The same type of communications pro-

edures as used for SCANTLING and GERENDE are employed with CLACKET:

VI. PERSONNEL.

...

Personnel dropped from the Project:

LIEMPTY-3 - Now carried under the LICOOL Project.

2.

LEMPT'Y-Li - Resigned. Termination report forwarded to

Headquarters.

SECRE TALEN

---

## Page 256

4-00000

SECRETA

-8 -

LIEMPTY-18 - Wife of LIEMPTY-3. Now carried under the

LICOOL Project.

B.

New personnel not previously listed under the Project:

1.

LEMPTY-19 - Position: Support Agent. Wife of Raymond H.

GERENDE.

OA granted 13 August 1959 per HMMW-7988, dated 19 August 195%,

and amended per DIR-41523, 26 August 1959. See PRQ, Parts I and Il, for

additional information. @ ii.:;]

2.

LIEMPTY-20 - Position: Agent member of LIEMPTY/LIJERSEY

surveillanco tear. OA granted 2 July 1958 per HMMW-6572, dated 12 July 1958.

Seo PRQ, Parts I and II, for additional information.!

3. LIEMPTY-24 - Position: Wife of LIEMPTY-9. She does not

receive a salary nor does she actively participate in LIEMPTY-l's activities. OA

granted 14 September 1959 per HMMW-3099, dated 25 Soptember 1959. 1 3i02i

VIL. ESTIMATED COST OF PROJECT FOR COMING YEAR.

Compensation: (Note: Sufficient funds are indicated to provide for later justified

raises to agents.)

AGENT

Raymoud H. GERENDE

Oliver G. SCANTLING

LIEMPTY-4'

LIEMPTY.-5 at $1. 75 per hour

LEMPTY-6i

LEMPTY-7"

No Salary

LEMPTY-8'

LIEMPTY-H'

LIEMPTY-10-

LIEMPTY-11+

LEMPTY-12°

LEMPTY-13r

LEMPTY-14r

LEMPTY - 15

•.. LIEMPTY-16

...*-LEMPTY-19+

:.. LIEMPTY-20.

Wilma J. FIORDALISI

Louise J. MACRINO at $2.02 per hour

LIEMPTY-24u

No Salary

U. S. $ PER ANNUM

$ 4,560.00

4, 200.00

2, 000.00

2, 500.00

2,500.00

1, 500.00

2, 500.00

3,600.00

2,500.00

1,800.00

1,800.00

1, 400.00

1,800. 00-

1,800. 00-

1,000.00

1, 000.00-

4,010.00

2,500.00

-0 -

SECRETI

---

## Page 257

Four additional agents at $2, 000 per year

Simon D. CLACKETT -

Salary

$7,750.00

Quarters

1,800.00

Education Allowance

360.00

Travel

1,000.00

$ 8,000:00

10,910.00

Operational Expenses:

Automobiles (+ cars and 1 truck)

(Maintenance, operational expenses,

replacement of parts.)

Travel of agents by commercial carrier

$ 3,000.00

500.00

Operational Equipment:

Purchase of one used auto for LIJERSEY

Surveillance Team

Purchase of one base radio for LIJERSEY

Team

Repair and maintenance of radio and

camera equipment

Purchase of new photographic equipment

and supplies

$ 3,500.00

1, 000.00

1, 000.00

2, 000.00

Real Estate:

Rent, utilities and maintenance of following

• safehouses:

*LIMITED

*LICALLA.

LILYRIC

$ 2,500.00

1, 500.00

1,000.00

*LIMITED and LICALLA rente are returned to

the Station by LMOUSINE and credited to Station

miscellaneous receipts.

Funds for procurement and servicing of additional safehouses,

post office boxes and renting automobiles

SECRETE

$ 61,910.00

3, 500.00

7,500.00

5,000.00

2, 000.00

---

## Page 258

14-00000

lela a 1gda090 .9

. .

SEGRETR

- 10 .

Exchange commodities (required as good will gifia)

Damages (broken contracts, "key" money to obtain

locations in choice areas, rent deposits, etc.)

Purchase of information, purchare of identificatio.

locuments, payment of bribes, etc.

TOTAL

$ 1.000.00

2, 000.00

2,000.00

$ 84,910.00

&S COPY

50-6.04/1

---

## Page 259

TUSSINATI

TO

DISPATCH

8 Chas al Stállon, Mesdoo G1ty

H:181-873

FROM

SULACT

DAR

8 INKAPT/Roquart sor Project Remora

506-742

; пот 125.

MARIED FOR INDETINE

NO NOCKING POLINE

INDENING CAN & ROGE

BY QUALIFIED NO DESA ONCI

e Sea balon

DEFERENCEISI

rofoot ІНРТІ охріто (п 30 Потчавет 3959. It 10 годаєзав

that your rocommandation for renanal bo pouched so that 1t razobel

Beadquartere prior to 1 Forember 1959.

OLIVER Q. GALBORD

1 Ostober 1959

Distalbutlons

3 - Headoo CIty

1 - 11/tailroom

NiCHolas,

w/3/iexico/.C.id Mansing

CS COPY

56 - 4-27/1

10$: 53

1800)

MARKOUS EDITION

51 3ó

AMICH ARE OSSOLETE

SBORES

Comato

---

## Page 260

14-00000

TLASMERATION

,SPATCH

i Chias as Station, tarloo Gity

DISPATIN SOMEDI ARTO NAS

102/4 7999

202-119523,

(30-6-747)

INtO

FROM

DATI

& Chias, HD

- LIENITY Brojeot Ameritsent

Rajnond H, G8:E5105 (ps)

ACTION MONITO

"135 -(CHICK"*' ONE

MAXALD FOR INDEXING

NO INDINING REQUIRED

INDEXIANG CAN DE JUDGEO

BY QUALIFIEO MQ. DESK ONLY

88911-23063, 5 June 1959

1. Da 16 July 1957, an enandment to the LIE IMPro 00E vas

approvod grantin persission to unand Raymond H. GIRFIDY' a cOntraCt

so provido him with & termination attlesent of ano sonth's salary for

oach full' jer that. ho works fos KUBiII ent to ralos his salary affootivo

July 1959 prom 14,080 to 84,560 por your. lo odditional funda vero

roquated for tha projost.

2a. A request to sand aIRstriy contrnot to inaludo the binafita

Ilotad above has boon subaittod. You vill bo notiflod than the contract

has boon saanded.

3.

A oopy of the approud projoot suardment 18 atreched for your

Inforiation and rocords.

RECORDS OFFICER STAMP

Tho following a po."s

_GALBOHD

authorized:

de - Retar

51: 1: PRia Mile

22 July 1959

Attachant s

1 - (RYBAT)

DIstributions

3 - Taxico Gity

1 - WH/111/N'ex1oo RYBAT Crfodö:

1 - Subject

2 - RI/CRO

WH/III/Mexico/r.I. SCALETTI: juh

If doutriction.

cite

reasons aud coordinato

USE PREVIOUS EDITION

REPLACES +ORMS

SUNCH ARE OBSOLUTE

S188A AT-D S1 20

annu

CLASSIGCATION

SECRET

50 - 6- 24/1

PASE NO

CONTINUED

dennen copy

---

## Page 261

4-00000

DISPATCH.

8 CrIeS of station, resies bity

CLASSEACATITN

SECRET

DISPATCA SYMBON ANO SA

1998: - 7522

MIADOUAGTERS FUR NOS

50-6-742

aNtO

FROM

1 Cries, bilD

I LILITY projoot Amandaent

ACTROM BRONTED

DATE

MARKEO FOR INDEXING

NO INDEXINE PROUIREO

INDEXING CAN BE AUDGRO

BY QUALIFIED MO. DESA ONET

HSMA-12236

1o The LIENTY Projaci Azendeant sas approvad on 30 March 1959 to

Includa the addition os a contradè agent, Loulse j, MACINO to surajal

actiniotratino aupiurt do tia Frojodi, and aloo to fameliao is spoolal

commitsent nade to Oliver G. SCHiTLIÑO. No additional lunds aro approvod

ander this enenduent..

2. Attached for the station's Infomation and socords in a copy of

the approned project mondeart roquest.

OLIVER G. GALBOND

3 April 1959

Attacherent?

2 pages (KAPOR)

Distribations

3 - Hesdeo City (w/s)

1 - WH/Mailroom (NO/8

L - WH/Mantoo (wo/a)

WH/3 Merdoo/B.I. SCALETTI:ng8

FOKH

10 53

L'SE PRIVIOUS EDITION

N59 S: 284 AND 5I 21

CLASSHICATION

SECRST

PAGE NO

I CONTINUEO

---

## Page 262

14-00000

DISPATCH

1 Casas of :la: doni Maadio 68:9

SECRET

INFO

swares sparat: 33924-655-77030

TENTATIN SINDUI AND NO

1175: -7342

MADOTARTITS PRE NO

201-153574

50-6-74/1

2 i FEB 1359

P 'ÄI' = (CHECK "I' OPAE)

MARREO FOR INDEXINO

NO INDIXING REQUIRED

INDEXING CAN BE JUDGED

BY QUALIFIED MQ DESA OAdY

sia tysarrore ayurool.cosala natirodgs dissateh salos 8058:810 a

2238 1089681088 dsist ed des

¿Ballia plaro to una lusjaa1 in s austelilanos asprod:y, hia arsalia: cieasuoco,

La tion al tha fate gare the MAst1an lino Act satO sTY 18489.171:518

reeralsaare af a aurualilanet sond, dt ds dos nochisor, to Bide 1354} 20320 80

WU48. 5o diahi03

20 TOSFEaTy 1955

ilotritats:ss

§ = soxleo 61t5

I - ba/nexico carono

1- wi/1012room

I -FJ

21-50-6-746/3

KH/1I1/axico/ThorTLon: 11e

CUSSIFICATION

1050 53

*REAMOUS EDITION.

823 050112

AVO 51 29

50-6-7411

PAGENO

I CONTANED

---

## Page 263

DISPATCH

TO Chlet, WH Dirlaton

1000.

SECRET

FROMChteR of Starlol, Marico CHY

SUITECT

LIEMPTY/LOUISe J. MACRINO

ACTION MIQUIRED

PAFIRINCEISI

Extend Sibfor' a contract and Include under LIEMPTY

HMATN-T2O3, 13 Fearuary 1959

VERO TURI AND V

HMIVIA -12230

201-85613

150-6-7811

119 February 1959

MARRED POR INITING

NO INDIVINE CÓLINEO

INDIXING CAN FE NOGIO

DY QUALIFIED ME DESE ONLY

1. Tha Mextoo Cly Starton regirets overlooking to expiratton al MA CRIND'S

contract, burlag recen monite, she has been able to wort anly a limtrod

amour becauso of lll health (primarily a bsart condirtan). Most af her work

dirtag the past elgat mohs has been dovosed to rypiag salected laformation

reor on eport mats and do lay rous tor non-sensitive translatton work.

2 Il Is ToquesTed ite MACRIND'a octraes be reaewod for Ose fear with

the same salary and other provistan?. Sho caa approprtstely ha placed under

te LIEMPTY protect as a starton support aner. Fos projaci admiststrative

purposes, she la being assignad to LIENTY /23 crypronym, Station bellevea

that suffoles LIEMPIY funla are already avallabla to cover her salary pay

ments dur tag the romalader of lie LIEMPTY project year.

Wlard C. CURTIS

QNO/ppa

19 February 1959

Diztrliar Lon

3 Hos

..........-

tele 568-6-7411

Plade

•PASE NO

ЮЯМ

10 5º 53

(80)

I'SE PREYIOUSEDITION

3: 2 S' DA AND SI

AMÁN ASE DESDIETE

CRAGRAEM

SECRET

I COMMUT

---

## Page 264

14-00000

TO

DISPATCH

Chief, WH DivIsIon

CLASSRGATCE

SECRET

FROM Chief of Station, Mexico Clty

LIEMPTY/Change of Cryptonyms

ACTION MONATO

Change cryptonyms as reques red below."

HM MW-7257, 30 January 1959, Paragraph 5.

HMMA - 1 2155

HEADOGATTIN FIR

201 - 2338 89

50-6-74/1

201 - 229407

DATE

11 February 1959

M 11J" - ICHECK "X" ONE)

MARRIO POR INDEXING

NO ANDERING REQUIRED

INDEXING CAN DE JUDGEO

SY QUAUFIED HQ. DISK ONLY

It is requested that the cryptonyms of the individuals named in paragraph

five of refcrence be changed to LIEMPTY/21 and LIEMPTY/22 respectively.

Pillars a Certis

9 February 1959

Distribution

3 Hqs

raked erypt banks

50-6-74/1

PAGE NO

USE PREVIOUS EDITION

REPLACES

H AND I 20

WHICH ARE OBSOLETE

CLASSIFICATON

SECRET

_CONTINUED

CS COPY

---

## Page 265

3 Fobrriary 1959

MEZORANDUM FORE Ch10S, FI/OPS

FROM

& Chlor, WiD

".

SUBJECT

-1 LINITY Projoot

Roforanco 1a ande to your carments on the IINITY projaci uhich was

approved on l6 January 1959.

2.

Tho LIXirTY projeat providos for the development of tho formor

LIJERSEY AurvOlllInoo torn, tho mintenance of photo dirvallianoo bases, and

other support facilition for the lexico City itation.

In their review of tho

projoct beforo it vaa ani rotad, FI/OP3 surrested that MI! Division considor a

gradual roduction of tha corsilerable financial and personnel cormitzanta in

this profoot in viou of the favorably devoloring IIE VOY llaison rolationship.

FI/OPS ballerod that a mallar, nore managuable support group ulth grastar

emphasin on selectivity of tasha ani targats could vell result in sore affoctivo

CI and FI produotiuity..

3.

The t'oxican dosk wishes to point out that rathar than raduaint tho

assets carrlod under the lICiTTY Irojoct, WiID bollevas that this profoct 18

an oxtronoly inportant one and should recoive load uartera support.

other Stabdon surellle.ce teams, IIVESTACK and lIFuCE, are both knoun

to the Mexican suthoritios.

Thereforo LIKITTY romaing the Station's only

secura surveillarco nasat.

It 18 a very asall untrained unit at present, but

through this project 1t will ho dovelopad into a useablo, valuable assot.

do lo are not passing FI/Op's comment to tha field, because ill Divialo:

Firet, the liaison has n't yot been firmly establiahed. Secordly, over with a

good Ilaison ralatonship, the lexican garvicea suat be considered anything but

the l'axican author1t103.

5.

Experionce in othor Latin

---

## Page 266

PREO 2

Exporianca in other latin Avarioan countries uhere liaiaon has boot

establlabod, lias shorn that many tarlon's tend to raduas thair unilatoral

operationa and capabilities in lavor of the Ilalson. Under thare elrounatanoes,

the production of the stationa heve aften been at tha moroy of the liaison

sorTice and a chanjo in tho attitulo of the service toward cooperating vich

th1s Aganoy has loft theo stallins virtually belpless. lie cartainly cannot

•rooorand that the Moxloo station reduce any of 1t's unilateral support assato

da favor of a proposed Ilalson rolationaripo

--1

J. C. KI:O

ChIA?, WHID

Distribations

Orig & 1 - Addresseo

Will/Mexico Chrono

1 - Subject F1lo

WH/III/Mexico/CZehrungsjck

- -

---

## Page 267

TO

DISPATCH

8 Chief of itation, Marico o1ty

CLASSICATHON

SECRET

FROM

sae?

Chief, WHD

: Operational/LIra-PTY Projoct Approval

MISPATCH STRANDA ND NO

1021n-7257

MEASOUARTIES FAL NO

201-229407

s0ils

k:.!.

P. AT - (CHECK-T ONE)

MARKED FOR INDEXING

NO INDEXING REQUIRED

INDEXING CAN BE MUDGED

BY QUAUFIED HQ. DESK ONLY

1961A-21257

The Flold Project Outline subnitted with IN'A-11257 was auproved

on 16 January 1959 without change, for the perlod 1 lecerber 1958 through

30 Hovenber 1959 for a total of 195, 330; $05,500 for the current fiscal

jaar and $29,100 for fiscal year 1960.

2.

An amondment to the original request for project approval ves

sumitted before the original project was approved..

Inis anoniment

requested approval to include sinon D. CLACK!T: (Ds) and Ailma J. FTORIALISI

(ps) under the LINI:PTY Project effectivo l January 1959 and remove them

sou the LIMitil Project.

The funds designated in the original tO for

the undesignated staff Agent were usod to cover the expenses for CLACKETI

aid FIOtinuesI. Therefore no additional funds were requestod for the

project til tila saenanent.

Sue approval on lú January 1959 included tija

project anandrent.

A copy uf the dienduent request is beilg fordarded

for your information and records.

3. irony the Staffs' corments on the LItifly froject, the following

rocommendations were nade.

KUDiaK suggested that the Case Officer should

sork at devising ostensihle sources of incomes for the agents which will

stand the scrutiny of iriends, relatives and lass friendl; forces.

Lo An arenarent to ClCKSTi's contract has been requested to allow

for a cuartars allowance.

Ine eduentional allowance requested in paragrash

1l of the project amendment was disaproved because CLiCKETT was a Contract

Agent.

The Quarters Allowance of $2,520 was turned dow because 1t was too

higio in relation to CLACKETT' a salary. Tlerefore, a quartera allossuce of

$1,800 has beer. annroved and will be written into ClicKSTi's contract. Il,

haver, operational and cover reasons require CLACKET to rent an apartment

larger tan the one he hould normally obtain under his allomance, tre Cilor

of station can authorise the artra rent as au operational expense which vill

not de considered as compensation for LACKiTT and thorefore not dubinet to

federal income tax.

"lease advise leadquarters whether you wish to have the cryptonyas

SOS GUACKSTI and FTOXDALISI charged to LILiPTY' g.

OLIVER G. CALZOND

FORE

1a5 53

25 January 1959

Attachment: Project anandhent (NYHAT)

Lastribution:

3 - Harleo City

1 - kiH/railroan

ih/3/etico

T-RI (09-6-897114

13/3/'exico/B.I SCALerTIings

SE PREVARLS EDITION

Hard hors

1 29 S1 T8A ANO 51$

AHICH ARE CUSOLETI

CLASSINICATION

SECRET

50-6-7411

PAGE NO

_CONTINUED

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## Page 268

DISPATCH

Chief, WI DIVIETOR

LLASSIPICATION

SECRET

TSAT+5-N05 1001

EM-A-11257

8X-1472

506- 11

TO

INTO

FROM

SUBJECT

Chies of Stattoo, Mexico CItY

Operational

LEMPTY PIOld Project. Outline

I PAQUIMO.

Headquarters expeditious approval of LUMPTY

NCHS)

NOT 2239, 29 August 1958

DIR 41362, 18 Septonder 1958

DATE

8 October 1958

M AT -ICMECK "X" ONE

MACHED FOR INDEXING

NO INDEXING REQUIRED

INDEXING CAN BE JUDGED

BY QUALFIED HQ. DESK ONLY

1.: Attachod 1s the LIMiTY fleld project outlina, a now Station

support project whieh supersedes the HIJERSEY Project and several portions

of the IPSIICK Projoct.

2. In addition to approval of LIMPTY, Headquarters 1a raquested t

change the agent cryptonyms as Indicated in Section 9 of the atteched flald

project outline.

3. Also, It 10 requested that the Station be advised of the new

LIBMPTY RI fIle number.

Bacla.

(Odd pages hereviti

Even pages USC)

Caro/oot

2 Oct 58.

D1strlbutton

3 - igs

watchut

2 - Fles

RECORDS OFFICES STAUP

the following caddo: 15

Stared:.

Teria ferrar

R.D0 30:030 - 1110 WH/1/R

Noto:

cito

rcascis an'

ordinate

19 appropriiio.

58-6-746

PAGE NO

CLASSIFICATION

SECRET 204

---

## Page 269

4-00000

SECKET

MEMORANDUM FOR: FI/OPS - Projecto Branch

CRYPTONTH

_LIBMPTY

DIVISION

Hostern Hemisphere

STATION

. Moxico GEr.

HEADQUARTERS CASE OFFICERS

MaMbs John be Bracy

ROOM?_

2112 Barton Hall

BX1o: 255-

DATE: 24 Noverbor 1958

It 1s requested that the LIBMPlY Project be approved for the

period I December. 1958 through 30 November 1959 for a total of 895, 380.00.

Wi/Personnal has been requested to locate a Staff Agent to

1111 the BÁP-8100 slot formerly under the LIPSTICK Projoct.

This slot

will be transferred to the LIMPTY Project and will be filled by a

person uho will be responsible for the directions of the physical sun

"rolllance toan under this projoot.

Ritate, re

King, /wHO

2 1oc, 1958

Attachmentas

FPO (in quad)

Form 680 (in quad)

Table of Vehicular Allowance

Justification for Purchase of Automobiles

Evelope with true names

...-

SECRET

#+t +0 105097-11257

50-6-1411

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## Page 270

PROJECT OUTTINE

STATION MexIco City.

1. The attached project outline 18 presented for approval for the

pariod 1 Decenber 1958 through 30 Juvember 1959.

2. Headquarters 18 roquestod to salect a sultable contreot or stars

tea to roplace Raysond F. GRADE As leader af the LIStSY muralllande

Fron the security standpotat, 1t 10 essential that GaRENDE be relleved

The individual selected by Headguarters to fill t

lot formerly occupied by Hilpred O, CLOWER (RAP-8100) shoula have ba

aperience in survelllanca operations and should speat Spaniah fluently.

=..

....

CS COPY

50-6-74%

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## Page 271

4-00000

HN4-A-12257

#4EET-1478

PROJECT OUTLINE

CRYPTONYM INDEMPTY

PART I

1.: 'Ares of Operations

The general area of operations vill be Mexico and the specific area vill be

Mexaco, D.F., Mozdoo.

2. Purpose

3. Background

operat the rare test cal get set ross aude emeral

18 submittod.

detail is one on a to of the are a set ages arch ans

Station proposes for Inclusion in LEMPTY:

1ng and leaving the LINERICK main gate.

printed by LTAMPIX-4, then returned to the LIMITED operator for the proper annotations.

After receipt of the photographs by the Station, the Case Officer revlers them for

operationel interest and PAPRIMS citisens who have visited LIMERICK.

KUBARK owns the property housing the LIMITED Base, having purchased 1t in mid

1955; however, the ostensible owner 1s LIMOUSINE, to wbora IISMPTY-6 pays his rent

each month through LIMOUSINS' & bank.

and now terminated) as the operator. This arrangement vas in effect for about two

C....

!

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## Page 272

4-00000

ENM-A-11257

8496X-1478

3-

LILYRIC = This Base bas been la operation for about to and one-hall jeara

and 18 located 1a an apartment bullüing acros a the street from the LIMiRICK

Installation. As In the case of the LIlHID Base, INTYRIC takes photographe of

persons entering and learing the main sate of the UNIRICK installation.

Tue:

INLYRIC photographs are bandled.in the some manner as the LIMITED pietures. In

addition to tatias photograps;

the LiLYRIC operators also prepare dally logs on the?.

setlytties of each-INRick employod, record the licease plate numbers of most cars:

carrysas people to and fron the LINKICK installation; and prepare an observation

cary on all target personnel: seen sach day. (Tils peraits the Station to tell when

a target personality is out of town or not vorking for soue other reason.)

The LYRIC Base vas orlelnally acquired and made operative to provide for

continuous coverage of the terget in the event LINTISD is ever coupronised.

This

1s satll the primary ralue of having two bases cover the some portion of the target.

LILYRIC 1B compartmented fron LTNITID and with the possible exception of CHRENDE

could probably reather any security flap ivolving LINITiD. Obviously, there 18

Bose duplication in the vork of LINTTED and ILYRIC; borever, the insurance value

of having two basds 1s quite appareat.::

ITTYRIC bas been operating for about two and one half years and insofar as

the Station knows, no coupromising socurity situations have arisen.

LICALIA - The ICALIA Base 18 located 1n a position where photographs can be

taken of people within the LIMKRICK garden area.

In addition, the operator of the

LICALLA Base submits meekly reports n IMERICK construction vork, dally logs show-

Ing when a target indiridual was seen that day, and reports showing the association

of target individuals with one another.

LiCAlLA photographs are processed and handled

In the same manner and by the peopla who handle the LIMITSD and LILYRIC pictures.

The LICALIA Base vas acquired and operations began about tro and one-half

yearo ago vita the primary purpose of obtaining additional operational Information

concerning LIMERICK personnel, and operational leads which could be exploited for

the physical penetration of the LINRICK installation.

Approximataly one year ago

the LICAIIA, Base usa purchased by KBARK through LIMOUSINS. LICALIA VIll probably

remain st 1ts present location and vill continue to subult photographa and reports

of the sane type as are now being subaltted. Other than the fact that ITEMPTY-9,

the LICALIA operator, is the brother of former LIPSNICK-47, no security problems are

currently krona to the case officer.

However, reports fron LIPSlICK? 12 and 30, the

local palice, the attorneys Invalved in the case, the foreign embassy concerned and

the INFLUTTiR tests gire no Indications that LIEMPTY-9 vas ever mentioned during

the LIPSTICK flap.

LItTRAP - This 1s a panel type trucò equipped vita cameras, talescopic

lens and other types al photographic equipment.

It has been used during the past

tiro years as an investiestive soset.

The truck is parked about 75 yarda iron a

target of interest (urusily a reaidence or apartuent building) and the photographer

In the rear of the truck photographs individuals or things of intereat to the Station.

02-6-741

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## Page 273

4-00000

2404-A-21257

ПАРОК-2472

The malor security threat to MiiiiAl la the lact that 1t has been operating

for about two yeard'in all parts of the olty and should soon be replaced by a truck

of a different

make.

Provision for this 18 made in Soction 15 of this Feld Project

Outzino.

LIJERSEY - This 18 presently an approved project; bovever, It 18 belleved

advisable for acministrative efficiency to include the LIJERSEY assota vithin the

Iramerork of the LIMPIX Project. Other than LILYRIC, which has already been

discussed, LIJIRSbY consists of a foot survelllance tean with thres members, INTEMPTIB-

15, 16 and 17. LIMPlYs 15 and l6 have been employed for about one and a hair yours

and LTEMPTY-17 Isir about one yeac..

They heve not developed lato as competeut a surve11-

lance tean as the LPStICK ten vas and probably nover vill becone as good.

The

LIJERSEY team has been uses nosily for stationary surveillances and

observations of

peopla of interest.

LIEMPTY-17, however, has also been usod so, a pretext investigator.

He has excalled at this type of work and the station continues to use him in this

capacity.

The. Station has been reluctant to use the LIJERSEY team as much as 1t

could have been used because of the clösë association of the tean with GRaNDs and,

in turn, GERiNDe's knowledge and work on LIFPAT and the LIPSlICK surveillance team.

The Station plans to recruit several agente of a type and social level more sultable

for all types of surveillance vork than the present INdERSiY tear.

O11ver B. SCANTLING - SCANTLING has been associated with KUBARK for several

years in a number of different capacities.

He vas orleinally used as a member of

the LIPSTICK survelllance tean and later was head of the same teem. He has been

used to train now agenta in the techniques of surveillance and investigation, to

acquire office space and apartments for the station's operations and to conduct

Investigations and make recrultment approaches to individuals of operational Interest

to KUBARK. SCANTLING is currently being used by the station as an investigator of

LIMESA leads andis atill actively pursuing the LTMESA/MKLIGETING operation.

S'ANILING also maintains regular contact with LIMPTY-3 and nonitors his elicitatica

effort against the LICOOI-6 target. In this connection, both SCANTLING and LTEMPIY-3

meet regularly vilh Doria M. KILIGO for operational guidance. (Note:

Please Bee

the LICOOL Fleld Project Outline for additional detaila on LICOar6).

4. Referencos:

: L Prolet Outing and operational papers.

Dispatch to poet lifest pouch, Subject: Herler of Raymond I. GRIDE®

5. Objectives:

Oliver G. SCANTLING's activities:

payoical faci collect operational laformation pertalning to LIMBRICK personnél and

b.

To collect operational infornation pertalning to other targeto of

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## Page 274

EM4-A-11257

KAPOK-1472

oyportunity, farolga offictal installations and personnel of Intelligence Interest

operating 1n Masico.

veillances.

To explost operational loada through recrultuente, debrieftage and sure

Raymond E. CEREADS'o actIVItIeN:

1. To colloct operational information pertaining to LIMERICK personnal an

hys1cal lac1l1tles through the use of photographic base houses.

To colleci operational Information and IdentIsy operational loada pertala-

118 to station targets of opportunity.

S. To provide operational support to Station operations, 1.0., sent sotal

rooms and apartments, and conduct counter-surveillances.

Staff Agent's activities:

Go to collect operational Information and to identify operational leade

pertaining to the LINEPICK targot and Station targots of opportunity.

6. Targete:

O11ver G. SCANTING - The primary target 1s, of course, the laMERICk installation

and personnal.

Hovever, SCANTLING devotes most of his time to following up IJPSAI

Leads which pertain to services provided the LIMERICK installation by Iudividuals

and firms, 8.B constructionenglneers, lode-varing firis, safe experts, furaiture

makers, Interior decorators, stc.. To an

a extent, these are considered targets or

opportunity and 1t vould be Impossible to List specifically what future targete

vill be avallable. One specifie target which SCANILING 18 concerned with is the

occupant of the LICOQL-6 apartment; however, LINiPTY-3, whom SCAYMIG basales,

should more correctly be given credit for infarmation produced on this target.

RaymOnd H. GIREND: - LINTED, MARIC and MCAn all have as their targe

the LIMERICK installation and personnel, plus any local nationale and PAPRIMER.

who v1B1t LIMKRICK, LTANIRAP 18 concernod with targets of opportunity and fallor-

up Investigations on operational leads obtained from other Station and Beauquarters

Bources.

The sane targeto apply to the LIJERSEY survelllance team as apply to

I TiPIRAP.

7. Tasks:

Feld Case OffICer - QuiLton N. OUSIR

Suparvise and direct the operational activities of Raymond H. GIRENDE

1ver G. SCANWING, and the staff agent

inder GERENOR, SCANDIN

---

## Page 275

EN84-A-7)257

KAPAX-2472

c. Coordinate-support reguesta from other station Case Officers valei

InvOlve of ther GERAlDi, SCARINNO or the otatI agent.

Procese (Indexing, traces, oto.) the photographlo and other taformation

fron the LTEMPTY outaldé photographic assots.

LIFTY® Proparo operational and adatiatrative correspoldance pertalalas to

Perforu one uan surveillances and investigations to Identity Individualo

of operational Interest.

Perfor comprehensive anddstalled casings ofinstallations of interest

to the Station and Hesiquarters.

Provide admislatrative support and sone oporational guidance to

INTEMPEY- 3.

Recrult Individuala which have physical accese to the IMBRIG

Lastallation (basically 1n support of LIMESA).

•. Spot prospective agent candidates for possidle later une by the Station.

Agent - ITiMPTY-3

8. Cultivate and elicit Information from the occupant of the IICOOL-6

apartment.

b. Where possible, broaden his contact with the LMERICK people for the

urpose of detaining information concerning LIMBRICK comercial matters 1n Marder

und to Identify LIMERICK personuel who. may be susceptible to dolection and/a

recruitment 1n place.

c. Support the IICOOI-6 technical operation by operating the recording

machines and occupying the monitoring base as bia family quarters.

PrIncipal Agent - Raymond H. GARKNDE

a. Manage and act as the Case Officer's principal in the supervision of

LICALIA, LINVIRAP, LIVERSSY surveillance teame (unt1l rellered

by new stull agent and LIEMPTYs 4 and 5.

b. Set up and maintain proper clandestino cousunications procedures ult)

all agente under his supervision.

c. Revier perlodically all aspects of bis operations for posalble security,

personnel and management problens.

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## Page 276

• -.-.

...

EM4-A-11257

KAPOK-14T2

d. Propare sonthly actiritles reporto for all projects under his supos-

vladan.

8. Perfor iarestigations on targets of opportunlty sa directed by the

Case OFFICER:

Until a replacement 1a located, moultor and process the INFBAI GHORATIG

ard IN'SAT CubRa Bodles taps.

LINTISD Base House Operator - IJEMPTY-6

3. Photograph Individuals of Interest who enter and leave the LIBRICi

Installation through the main gate.

Prepare logs and nther reporte on individuals of Interest who vialt

and/or work at the LIMERICK Installation.

6. Maintain the cover of the Base as a family residence.

INTRIC Base HOuse Operators - ILEMPIYA 13 and 14

Sume tasks as the IMMIND Base Housa Operator

Agent - ITEMPIŸ-12

Serve sa a cutout between GRENDE and IIEMPTY-13, the IlLYRIC Base

Fouse Operator.

D. Insure proper tradecreft procedures are employed by the IllYRIC base.

Spot and report on individuald who would nake suitable agent recrults

for the Station.

LICALIA BASe HOUse Operator - LJEMPTY-9

8. Photograph individuals of interest who appear in the garden ares of the

LIBRICK Installation.

b. Prepare logs and other reports on individuals of interest who viadt

sad/or wart at the LIBRICK installation.

c. Maintain the cover of the Base as a family readdence.

LIENTRAP - LIMPIYSIO and 11

8. Perfarm photographic and other Invesüigative assigments as directed

by the station through OKRENDE.

. '

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## Page 277

4-00000

8974-A-11257

XAPPK-2472

D.

Protect the securlty of LIBMIRAP and report all operational security

developments involving the operation.

BtasI Agent (to be selocted by Beadquartera)

ABErMO OporatIonal responsibility of the LIJERSIY sUrvalllaNce

team frot GORINDE.

D. Develop the present IIVERSSY assets into a useable survelllance ascet.

ci Train new survoillance toem wanbers in the art of discreet physical

survedllance, Ibeluding statio, foot and mobile methods.

d. Spot, and where feasible, recrult new survelllance team members.

LIVERSEY Surveillanóo Tom - INTEMPTYs 15, 16 and 17

Perfarm surveillances, pretext Irvestigations and other livestigative

analgements as directed by the Station through GERANDS.

b.

Strive constantly to inprove their Individual and collective lavestigative

techaiques.

support Agent - LTEMPIX-I

8. Process and print fili froM LIMITED, ILLYRIC, LICAiLA and LLENERAP.

Support Agent - ITEHPTY-5

8. Translate and type material sa recelved from the station through GERENDE.

8. Coordination:

This project will not require coordination with other fleld atations.

9. Personnel:

a. Pseudonyus and cryptonyma

(1) Raymond H. GRINDE, aka IEXPTY-1 (farmerly LPSllCK-20),

Position: Principal agent - lontest AGENT

2) Oliver G. SANTALiO, aka MNTIY-2 (formerly LTPSTICK-19,

osition: Principail Arent

ORAL CmIRneT effinia Fibruary 155.

(3) IUTHPTY-3 (Parmerly LUPSTICK-32), Poltion: Agent.

(4) LIEMPIY-4 (formerly IIPSNICK-33), Position: Support Agent

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## Page 278

#M04-A-11257

KAPOR-1472

(5) LIPTY-S (Sormer)y LIPSTICK-40), POBItION: Support Agent

4916 (Faery LIPSTICK-14), Pooltions Agent, LIARD Operator

(7).

ITHPIT-T (Cornerly LIPSTICI-27), VISA Of LLEMPIY-6.

(9) LINTY-S (POrTerLy LIPSTICK-39), POsItIon: Agent, LICALLA operator.

(10) 128918-10 (For) LIPSTICK LIPSiICR2), Foeltion: Agreat, Photo truck operator.

11) LIEMPTY-Il (Pormerly ITPSTICK-24), Poddtion: Agent, Asaistant phote

ruct operator

(32) 17397-28 (formerly LURSBY-S), Poaltion: Aseat, cutout and spotter.

(13) LUINPTY-13 (POrnerLy LIJERSSY-2), PositiOn: Agent, LILYRIC Base House

operator.

(14) LURPIY-14 (Pormerly LIJERSEY-12), Position: Agent, Asslatant LIETRIC

$9S9 House operator. HIfe Of ILEMPTY-13.

(15)

LISPIY-15 (POTHErLY LIJERS8Y-4), Position: Agent, LIJERSEY survelllance

terra nember..

(16) WISPTY-16 (SOMerLY LIJERSSY-8), POSItIOn: Agent, IIVERSEY SUrVOllZaNDO

team member.

(17) LINPTY-17 (Somerly IIJERSSY-13), PoEltion: Agent, LUSASBY Burrelllence

team member.

b. Personal Data:

Personal dats on all personnel Ilated above have previoualy been provided

to Headquarters, elther 1n projecta LIPSIICK OF LIJERSSY oT in EAch 1nlivIdual'a

PRQ, Parta I and II.

c. Operaticaal Approvals:

(1) RazORd I. GORENDS, OA

datad 14 March 1955.

- at 29 February 1955, per 1194-2067,

(2) 011ver G. SCANTING, lA granted? December 1954, per MMH-189%,

dated 29 Decomber 1954. i - 26503

(3)

LIEYPTY-3, DA granted 10 August 1950, flle number C-46955, per

89t7-3712, dated 24 August 1956.

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## Page 279

#M14-A-11257

КАРОНЬIД7₴

-10.

(4) LIEMPTY-H, OA granted à October 1950, Sile nuRDer C-51872,

per E10S-3593, dated 18 October 1950.

(5)

LIEMPTY-5, OA granted 8 May 1957, file maber C-58482, pox

0984-4527, 15 May 1957.

(6)

MAC'TY-6, OA grasted 23 Septender 1954, per DIR 19215, 30 Septeaber

1954. C'-i2444»

(8)

LIEPTY-8, OA greated là October 1955, per I88i-2622, dated 81

Octobar 1955.

0-350

(9)

LTEMPTY-9, POA granted 27 Deceaser 1950, Illa nunber C-50099, per

InAH-3940, dated 10. January 1957.

(10) KIEMPTY-10, OA granted 10 April 1953, per E8W-557, datod 23

Apr11 1953.

(21) 14 October 1955.

LiMPrY-11, DA granted 14 Septenber 1955, pex HNMW-2572, dated

1:141438

(12)

1955. 77-22, A dantod Ià July 1955, per ENG-2384, datod 22 July,

(23) LIEEY-13 OA granted 9 Has 2956, per 1A4 3U13, dated 22 May 2956.

(14) LIKMPTY-14, OA granted 16 October 1957, per INNS-5402, datod

29 October 1957.

(15) LIBAPTY-15, DA Granted 30 July 195, 'le naber C-48094, per

INAH- 3359, dated 8 August 1950.

(16)

ILEMPIY-16, DA granted 14 FebruRry 1957, Flle sumber C-54099,

per EMMW-4124, dated 20 February 1957.

(77) 1 otober 1950a grauted &3 September 1957, par 194-5232, dated

1 October 1957.

10. Cover:

Raymond I. GERMiDE 18 the only ITiNPIY agent who has cover provided by

¡'iru vas arranged by the Station sod, so far, has been sdequate for diRiNuS's needo.

---

## Page 280

1184-A-11247

-a

The Case OffIcer, Quinton R. OUSLER, 18 knom only to GERENDY and

It rould not be possible lo develop a suitable cover story that

vould apply to the frequent mistings betireen the Case Officor and the Priscipal

Agents; therefore, meetings are clandestine and are usually conduated in the

Case Officer's car.

Hovever, sultable cover storles have been doveloped betreen the

Case Orficer and SCANTLING and between the Case Officer and GERENDE involving back.

groine Information as to bor ve met and hou our friendahip devaloped, to be useu

In the grant thie. Case Orficer 18 apprehended with asther of the Principal Agents.

Hone of the status cover occupations of any of the LIEMPTY agents 18

completaly compatible vith his operational activitles. Action cover storios aro

doulded upon before sach assigment and devised to complement sach agent'a status

cover as closely as possible.

Base House operators, of courso, generally conduct

operational assignments uithin the confines of their quartera; consequently, the

need for action cover stories 18 reduced.

Appropriate cover stories exst between

GRINDE and the agants in his netwark and between SCANMING and LIRMPTY-3.

11. Cantact and Communication:

Appropriate clandestine communications arrangementa exist between the various

echolons of LiMPTY.

At the present time these plans consist of regular and

rapid-non schedulod (emergency) means of contact. GEFUNDE and SCANITING are both

in the process of preparing detailed vritten coumunications plaas for thelr

respective agents which Include complete regular, alternate and rapid-noz

scheduled meeting arrangements. Proviatons will also be made in these plans for

oral recogaition algrals and physical bons fides that will enable a parson uniscosm

altuation arise which would necessitate this.

12. Control and Motivation:

8.

Control - ALl LIMPTY agents are local nationals, GRENDE and SCAMMING,

both of whom spent a great deal of their childhood years in PAPRIME and st11l

The control

D. Motivation - With the exception of agraNds and ScaNtuid, whose primary

motivations are ideological, financial compensation seens to be the baatc

notivational factor surrounding LIEMPTY agents.

.:...

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## Page 281

BN64-A-11257

KAPOK-I4T2

-18

13. Eguspent and Other Support:

14. Timotablo:

3a case a get er open a pental are e eye it a na

The agents and operstions listed in this project have previoualy been

carried under the LIPSTICK and LJERSIY PrOjeCts. It 18 the Statlon's undor-

standing thät the LIPSTICK Project vas extended to 1 December 1958 to gave tho

station tine to subult LIBIPTY. The MUiRSTY frojoct expires in 1959 or upon

approval of WEMPTY.

DO ITEMPTY Project represento a rajor operabional rupport assot of ta

adeo City Station and, as such, will run for an Indefiaito period de time

---

## Page 282

1..

EDB1-A-11257

KAPOS-1472. •

-13- •

PROJECT OUTINE

PART 1I

CRYPTONY

LTEMPTY

15. Estimsted Cost:

Compensation:

(Mote: Sufficient I unde are ladicatod to provido for later Justilled raises

to agents.)

Agent

UB $ Por Amun

Raymond H. CERRADE (tallou for passchle raise) # 4,560.00

O11ver G. SCANTLING

4,200.00

2,000.00

LTEMPTY -L

2,000.00

LIMPTX-5 @ $1.75 per bow

2, 400.01

LTEMPTY-E

2, 400.0

IJEMPFY-7

No Salary

LTEMPTY- 8

LTEMPIX-9

No Salary

LIRPTY-10

IIEMPIX-11

LIEHPTŸ-12

LTEMPTY-13

LIPMPTX-14

LTEMPIX-15

LTEUPIY-16

LIEMPFY-17

S1x additional agents & $2,000

2,000.00

3,600.00

2,500.00

1, 800.00

1,800.00

1,250.00

1,800.00

1,800.00

1,800.00

12,000.00

Staff Agent (to be selected by igs)

salary

$8,330.00

Quarters

2,500.00

Education Allowance

640.00

Travel

1,000.00

Shipment of HiB

2,000.00

14,470.00

Sub-total

Operational Expenses:

Automobiles (3 autos & 1 truck)

Maintenance, operational expenses,

replacement of parts.

Travel of

agents by commercial carrier

sub-total

2,500.00

500.00

62,380.00

3,000.00

d...

---

## Page 283

HA-1125

KAPOK-1472

-140

Operational Equipaenti

Replacement Of 2 LIJERSEY sutos (MV-2148 & MV-2147) 6,000.00

Replacerent of SCANTLING'S AP auto (4Y-2041)

Replacoment of LINITIRAP (MV-2133)

Purchase of 1 used auto for INJERSEY surveillance

Purchase of 3 tro-vay radios & ane base radio Por

3,000.00

2, 500.00

4,000.00

2,500.00

LIJERSEY toOn

Repatr and maintenance at cameras and radio equip-

500.00.

Pirchase of nor photo eguipment and supplies

2,500.00

Sub-total

Real Satate:

ent, utilities and maintenance of following sari

buses: Per Anni

* ITHILED

SLICALIA

* LILYRIC

500.00

1,000.00

1,000.00

Sub-total

Juada for procurement and servicing of additional safebouses,

post office boxes, or renting automobiles

Exchango commodities (required as spodwill gifts)

"Key" money to obtain locations

Purchase of Information, purchase of 1dentificatios documenta

payment of bribes, ate

TOTAL

*INITED and LICAllh rents are returned to the Station by INMUSIN

•and credited to Station macellaneous receipts.

......

2, 500.00

2,000.00

500.00

2,000.00

2,000.00

$ 95,380.00 U.9.

just

50-1-7411

--.

21,000.00

---

## Page 284

14-00000

0150

E081-A-11257

KAF3E-1472

16. Special Problems and Commitments:

8.

Ho countments, expressed or implied, have been made to any LTEMPTY

agent by the present Case Officer, except as stated in the projoct outline and/ar

1n the contracts of dialziDE and SCANIMo.

b.. In the event of compronise to the local goverment of any LIEuPTY agent,

Chora conte 1a be sit coe on de l tO a Li agat except

this prose cente

i everator a pot at to dat of a Most 11l not assoct

C3 COPY

1520-6-946

---

## Page 285

SECRET

MAHEN PULIED INO

UM: (Headquarters componen,

WH

TO

SUBJECT AND PROJECT FILE REQUEST

AND FIELD NOTIFICATION OF ACTION

TO

: (Statton/Base)

FROM: (Division)

INFORMATION FOR REQUESTERS.

COMPLETE ITEMS I THROUGH 12

TEM 10- ENTER OLD TITLE WHEN AMENDING A TITLE

ITEM 3-ALL FILE. TITLES MUST BE STERILE SÍNCE THEY WILL

ANY

CITE

SILES. SUCH AS 201 OR PROJECT FILES THAT ARE RI

APPEAR ON THE FIELD COPIES AND ON MACHINE LISTS

LATED TO TME FiLE COVERED

BY THIS REQUEST. ITEM 10 MAY

ALSO BE USED TO GIVE REASONS FOR THE ACTION BEING RE

ITEM S-ALL REMARKS MUST BE STERILE

QUESTED. TO IDESTIFY THE TYPE OF MATERIAL TO BE PLACED

IN A FILE OR TO MAKE OTHER EXPLANATOHY REMARKS.

ITEM 7 AND 8 - USE FIRST THREE LETTERS OF DISPATCH SYM

BOLS FOR FIELO

STATIONS 'AND LIST HEADQUARTERS ELE

TEM 11 - A RECOROS OFFICER MUST SIGN ALL FILE ACTION RE

MENTS ACCORDING TO ESTABLISHED NUMERIC CODES

QUESTS. CONSULT YOUR RMO ON ANY PROBLEMS THAT ARISE

INFORMATION CONCERNING FILE

TYPE OF FILE

2.

CODE FILEI NUMBER

COUNTRY NUMBER

CATEGORY NUMBER

TOPECIFIC SUBJECT NUMBER

PROJECT

50

SUBJECT

3 FILE TITLE ISPECIFIC SUBJECT, (PROJECTS LIMITED TO IS SPACEST

74/1

KDFACTOR

OPEN FILE

AMEND FILE TITLE

ANALYSIS ACTION

CLOSE FILE INDICATE OISPOSITIONI

ACTION

REQUIRED

RETAIN

DISPOSITION

TDESTRUCTION RECOMMENDEO

THRU IDATES

FORMERLY LIEMPTY

7. INTERESTED STATIONS PROJECTS ONLYI

HMM

8 INTERESTED HEADOUARTERS DESK ILIST ACTION DESK FIRSTI

FILES ACTION

UNRESTRICTED

50

ORCE E DESKENTLY TO

HOLD IS

RESTRICTEO

TO. COMMENTS INCLUDE SPECIAL HEADQUARTERS ROUTING INSTRUCTIONSI

PROTE FLUESTER

ENOORSEMEN

SIGNATURE OF BRAVCH/DESK R. O

EFFECTIVE DATE

FORM

12-63

812

OBSOLETE PREVIOUS

DITION

Fg.2.€

12

COORDINATION

SIGNATURE OF BRANCH/DESK A O

WHEN

APPLICABLE)

050

SECRET

13.

RID APPROVAL

REOPEST APPROVED OF

Vous Conchorie

006

38

074/01

I-CS COPY

---

## Page 286

-

TO: RI/AMALYSIS SECTION

(tapronian More)

FROM:

Charlotte Zehrung

1. CASE TITLE

SECRET

perho Pilled 109

CASE FILE REQUEST

COMTONENT

WH

DATE

24 Vatober 1958

BUILDINO

RоOм NO.

TELEPTONE

Barton

2120

ACTION REQUESTED

2758

EN PIL

INDICATE

61058 FILe

RESTRICT PILE

TO IDES

WH/III/Mexioo

PERMANENT CHAIGEOUT

TO IDESK).

WH/III/Mexico

PREPARE PILE FOLDERS

AND SENO TO REQUESTER.

8. COUNTAY AND NUMBER

2. CATECOM ANO NUMBER

50 (Moxaco)

6 Operational

3. COMMENTS (Inette brial descriplion of Alo 'or project)

Photo and physical surveillance coverage and suppot for station.

COPY

& FOR RI USE ONLY

1 AIRECT STATUS

2. FERD STATIONIS)

MEXI

HEARS COMLAOMINII

мін ти

RECORD

ENDORSEMENT

THIS REQUEST SATISTIES RECROS REQUIREMENTS.

LOVES MROVO

APPROVAL

BOreD 0. 8017E1

FOR CHIEF, 8T

RI CASE TITLE NUMBER

EFFECTIVE DATE

29 Cattler 1958

DEC SO 812 WRON

SECRET

50

6

N.S

1560

---