Transcript of 104-10177-10135.pdf
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14-Q0000 104-10177-10135 2025 RELEASE UNDER THE PRESIDENT JOHN F KENNEDY ASSASSINATION RECORDS ACT OF 1992
COWFIDENTIAL
NOTICE
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ADD ANY DOCUMENTS To THIS FOLDER . FORWARD CS
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NOTICE
CONFIDENTIAL
porV 1-6 2593 ~-IJ)
{0
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CONFIDENTIAL
NOTICE
THIS FILE HAS BEEN PROCESS ED AND RETIRED _ DO_ NOT
ADD ANY DOCUXENTS TO THIS FOLDER , FORWARD CS
DOCUMENTS THAT SHOULD BE INCLUDED IN TXIIS FOLDER
TO RID/RPU GE-58 _
NOTICE
CONFIDENTIAL
Krr
'pRA
10
2593 17-131
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WT"[a1 ";Mm# Mi (1 iii A;4#; VP{ RS 1'"
{ons S(T ("YMT ()'} AxstN / f: SarT M:'!M ~S
FIl; 1ITLE {NU"UREP /VOLIWIF ;' XKTezy2 2 fEEZ
LHLLLS_2+'2 4LEE_RdLEiE ,
Zl_SLLLIIyZYLT LANESZ
CczclF ELD:RS
INCLUSIVE; MTES: 1952 Z 1725
CUSTOIIAL UNIT/ LOcATTov:
1oo t :
DELIAT IONS , UF AVY :
DJATI; D RIVTINET) TR STMATTRT; 7F
RECH I VI: I) IRETURNZE) (PWINT' NnIl; RUWIRwG OFFICIAL
3/zx BZzhs[Des HAAY_ IklL~
No HUCUAIIENTS MAY IBI: coi'ti (1 R; i(i;I) FR(| TMs FILI .
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Wvi "Mi Mr (.1 {m /;#"nS 1)
moDS!" St om ()'} ,};%i/ Mv; Sim M.rS
FULI: 1ITEAO"TFEP/1(.UA ; LEZ? / (<: @eLEZS
EHLLis AiL'2 YLEZ_2e1_FuE .
To 2liiSs_ ZLi LAEJEEI
8ZcUF ELLEtRS
[NCLUSIVI; DATES: 4952 ZzJ'225
CUSTOIIAL UNIT/ocaTtOV :
ircho'i
DELIT IONS , TF AVY :
TMT; TTTT; TRTTT MTET RRY STGAATTRT:; F
PFF CE IVI:D RITURI: /> (DVINT `MII: RUKIEWLG OTFICIAI
3ETE EEEDA HATAY DL_IaAel
NQ IJUCUMIENTS MAY FI: Copmii (i RINO( I; I) FR(i TIS FII .
7i
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rt ~ TUr
KAFQ
6
Jlr Pouch Secimy 53 Tcj-8-16I
Chlof , BPZ 29 dac+wbjt 1961
dcEIng-
Chlef 01"' Statlon, Jun:Iego
Zicictc: , CrIJe,
Pwbiru#or-}'0 :Tt-8t Cowiraap
Rofurence, {Cs-77-Je68
1, attacho] kororlch pleaso fInt 0 . pro forua dontract &Ich nug beon prepared
for rulelnator-M'9 il;naturo, io Hr"B 0Letod tkar 8 i9 Jn aeroomo"e #Ith I0
provlofon8 _ If thi8 ccatragt Ja batlufnctorz pleauo reburj It for Nb Olg*4turo
at Bucr tIro 23 hle 0lderanco Js obt#Ined.
2, FUL'HIRATER-} hag okcra Wlmgolf tu Db Yer; Ontkunfaetio regerding tho propoaed
Gploynont With thle Crtanleation bud Jj anxIoug +0. start Gna tusko to bo
a8a1gno. +o Kin 49 accr e3 ht? clouraco0 J9 obialred and tho uooo#bery Inatruotfona
0ro fcrurdel to arls Se:tona
5. To carty ort thc 0cFore Prr Pl; ance Dopoot Of FWL@imzE-]'3 dutieg ke hue
hlghly recormended the 400 of KIctcr Pudlsti (f+0E4. Tno J4e-&r I8 8 Cefloan,
about 58 Yenre cf #60, wuc I3 fcrtrar a[' x1nK1E-1'0 pr n:iug; %io #lbq
1fv03 on thc ere1oos a.d wcul:l 00 +k0 porsoa who ncild Kevo t0 kuu I[ tho
pres808 ura uaed "T n,* }ia i3 rot 0 gecber 0f tnu printurs Jebcr urIon apd
hIs pu e t ac'Icrg #Fo Indicsted ta "_Inc-) :hat 18 1dug unt[-aliunist,
De ha & Loor @m;loyed BEL; Jenf# by Lucfenzic and Ca., 0 eriiah {ir Mi Ich abarod
the print sk.o? f4cllitios Wien F E6IE-'0 Qr65808, HovuVOt , FULenz-l'e
aqulpnent {0 0ntlrely nczarate Iron Eaokongle'3 aud ir Gko Govart work Io dono
at nlght 0g I9 antfcipated 1t J0 FULWIMATER-]'0 opinlon that FoBLE [i; cotld run
025 ~ho wcrk @ithout ary po8uible Intorforerce {rcg other {rdlviduale . nrothor
02 PODL: %3'8 edrantages 19 tho faat that h0 10 abl6 to perform all tho prlntins
opora Llerz rhlct: bi1 b0 nedojuary l0 out soreal propueanJ4 ond 9iuflar
nater]al 1c tHia Fculd olirinatJ tho pe0d to 480 olboj puraona Jn tho
preparation 04' tho prcpaijanda materfal,
4 PC@LITi ku9 b007 clogely ponzoated witt tugllah and Anclo-Chilean offielale
of WiacKansIo * Co,_ fcr rany roars but It 4s balfoved Ica] 60 Prob uno that f
ho 1o pa:d geperously Por hg @crk Jn thl8 eonedtion,wIth tho uudertend[ns
that tho work 10 0f 0 ecpletaly aonf dontlal natwo and 0f 0 long-term baelo, that
bo eI)2 agr0a to Gomplete socrboy reeerding Gho work, Anout of' paynont t0
FC-LZTZ #il havo to ba decermlood wion tkero 1o 8cIo InJiaaelcn #0 to the {ount
of vork to.ba done. 2 looal Invaa:igation of trfa Peroan ba8 bo0n Inltfated and
tho roaults #Ill b0 ror-rdod 48 Qoon 9 Po881ble. #o derogatary Infornatlon
op th10 porbop Gpj'barb Jn t6le StetIcn '0 f[los.
r 0, Ic MIoe Fith tha authoriaation reeafvod I: TC;-+-1485, FUUTm4tFR-[ el HI bo
MIn 3[' Jl
7
MPOK
RVz
aropo
caly
hc
Put
1og
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SERRZI
'19_ ~8- VOtprHI Tcs-A-18Q1
from othor operat Ional funde the 2030 oqulvalent of h.a elary boeInnlng
) January 1952 . It wa 8 crnitderod naca88ary to bozfu hla peycento 0 & of that
dato Jr order t0 Snaure hie oontinued Ja' Chilo, Thlo St#cfon would
@ppruc Lato clerafloatfon or JDEDICT-Chfle t0 mnLoh, acaord to TS_-i-1466,
thle O*poda& 0oul., b0 ohargax far 0 ultod +Lze ,
6.81 FOLU INATER-]'e #sekly ne1?0Pbr 10 61/ omod by hfm, and 49 Indicetod Jn
attached oontract; he na8 agroed to tho ?aper for at loas t searo.
Tho othor obder Tc,3 R6 9 taken no actfvo Jntereat whataoovor In tke operatlon,
manageont or pollcfee or tho paper, apparontly plana to s0ll Na Rharo,
Tho probpoolive buyer 18 not know but Jn ar7 event PULJ;INS TER-l 7.11 retaln
tho Oontrcll'ng Isterebta
28, FULNINATER-} 48 VALlIns to apond tho po08bary tfu6 In WashIngton for
traleloz and wIII b0 roady to depart Incedlataly wkon 00 advfeed, Honavor , hla
rfo 10 orpeotIne 0 baby around 30 Deoembor 1961 acoording to hor dootor'0
0alculationa, and PULHINATEF-l vould prefer tq romIn In Santlago for at Ieabt
0 {0x days aftar the ohlid J0 born, Ho 19 oartalo that tho birth wIll tako
Plaoa Vithla 0 wook ' 0 tIme and Jt 19 hopad that hfe preaonoe In fadhIngton wLlI
not 60 reguired prlor to 15 Januery 1952_ Ae 0 oover 8tory for hio trip,
FUlN: NATER-1 h48 advlaod that ad opticn na0 been bcuzht oc ene of 610 playo
and tha : 0 trf? to 70y Ycrk to diaousg the pley #Ith tho prospeotfvo producer
J8 6 ocpletely loglcal Further, ho ha$ aD Batat0 In Tarag #toh 10 In.ltfgatlon
and ahlch could loclcally rozulra kit Freeonco there' PWLNINA EER-l uakod that
ho P0 aliowed to s2e0d a day 0r bap Jc 'Tereg eltber cn hie trip u? or haok 60
aottle thle ebtat0 and 4t I8 reooctonded that bo Da eowad tc do 30 In order t0
proride hla cover otory #Ith Goro 6a0]8 In faot,
87, FULX IWA CZR-1 bes been .told thct he Enet pey lnlted Statos Lncoma tax on hio
ealary redelved from tMie Crganlzatioa. #e J8 at 2 1088 , howover, to %now how
tH8 adeed Inccne car: 60 satisfactorfly and eecurely explaIned to tha Dopartront
of Internel Bevenue . In ecaordenco mIth tbe conten.0 cf FIeld Regulatione 50-18,
thle watter 18 bofng brought tc Headquertera attentlon mth a requeat for
Instructlon8 a8 6o hoiv thie matter J9 to be hendled,
Zcting ChT6T 0r Station
Kanneth J, Tondlor
efo
STcTI {lu
LPOK
0id 4
SIGERITY
Pald
#tey
Inc
Keop two
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AttachIont f TcS-A-JSO}
28 SECURITY
Fcrra Contract #ith EulyInator-!
Mo horoby Oontraot You to perform 8arvloea 40 ro-ulrod uder tha fofloulps
oond]tono $
1) To# 4gr0o to ronaIm In Chfla for at Joa8t tvo Yoara fron tho
dato of thlb contraot and you el8o agreo not to' 90l] dur
thfs ?erlcd ycur ebara of tho South Paofffo Waf) of whioh, 1t
18 underatood, 'You 0r0 0 Part oror and malntalo tho con trolllng
Ictorest, (513)
2 ) It 40 egraod by You that thio OrganIeatfon M1ll not 600050
Lovolved in ay vey, {Lnanofally Or otherslee, Ln tha] Soueh
Faoifio Xatl,
38) You mIJ carry out tho dutfe 48nlgned to You by tho
a?proprIato offIofal to tho beat of your abilty dovoting
43 emch tio to thom 99 I3 roesonably Po8aIble, takln; Irto
ccaaIderatlon your obllgation to Mhae0 tho South Paosflo
Euil #] the overt roason for Yjur regidenoe In Chle.
4 ) You Iill bo the 8u7 of U. S, 45,940 Per annun Por your
borvIoeg to thig @zanigation, Rcd Yo} 4gr9e, 1n accordaco0
Mltb bubgo3uout Inbtructicnd, to pay tho initod S*0t00 Ino on0
tax #hlch will bo d4a on tiis wount, Your BAlary will bo
Donthly .
5) You 4greo to Juke yowraalf avaflablo to trevo] to Haehington
for about 0 one mjath'J atay to uadorgo trainiag a9 reyutrod.
Iravel acd Ilving expeneaj during tbis trip #Ill bo pald by
tlle Crgucijation. It 18 not kow wilon thlo trip 01ll tako
plabe but It 10 bolfevod thut 1$ Mll b0 in tho zoar futuro-
8 ) You will be trantod wacatione during the perlod 0f your
Pnploymont Ln Clllo In aocordanc0 Nth "pplloable Chiloan
1a7
7 } Should local travol b0 roquired by thla Organizetlon, Your
tro7e] and Hving axpense8 shile Qway from Santlego w1ll b0
mado @veIlabloa
8) Raasoneblo ontortainont expon8 00 @ftor prlor ccneultatloa
witb thie offioe, #Ill ba retnburged,
9) It {8 agreod by you tbat You will not oxpeot 8Lok loeve
bonefit8 to ao0ure to under tke lertie of trie 0 ontraot)
and Xt 18 underatood that Tzur erployeent by thia Or aation
will Ontitle you to rotirocent and other B[allar bonofIte
0f Ucfted SeatoJ Govornant erployoos .
10) It {9 underatood by you that the terng of tho oontraot j0
SeC" .: 5
pe
Ang
paid
Paid
Pafd
you
'ganf
not
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;ttacnmart ! Tc3-A~I80}
~3-
PovIglona] Upon tho bat1gr4ctory clearanoo of your namo] by
+bo approprIcto offlofule .
11) Th9 erfoativo dete of #hf9 Oontraot I0 tho data 0l} Wleh your
bat Lbfaotory Oloarance 10 raoofv0d and tha tarm ghal) 60
Indofinltoo
12) Tho tornLnatton of' thls contraot mny be offectod at any tfzo
ueon #Itten notloe, but: #Ithout advana0 notivo, by thle
Orgenisation, auch termintlon tc be 0froctiva Upon roo01?t
oP tho notico, Tha ternlnatlon of thle contract mI11 not
rolea80 you from any_provLgionj 3f beourIty oaths whloh you
Ray 20 requlred to take.
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SECRET
Projcct Outlinc Clearance Sheet
Project Titlc PB GROVEL Amendment No.
Project No.
Developed by: 6 9_oh
Case
~oll
zation
29461
Revlewed by: I_ Z
~ib A
FLsL
TozH 8" PBE It Diriblon Chic Date
Concurrence;:
ZLzziEzd z_24._1
LBR _ zice
M0 z
{ate e_4
05/+ 9z }
Date
Date
Date
Date
Approved subject to condition8 below:
2442-2/1
72
2#
Date
Conditions of approval:
OPC Form No. 1103 (Rev)
2 3 A pril 1 9 5 ] J,4
SEC R ET
Umsy
Ghicttl 2ate
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P5C SC"T Qi "LIE
?roject F2HIZL Amencnent Nv'
Tpe Cratiqual
I. AUTHORIZATEOH"
4. Establ [arment "in tie inlediate fature" of rechan sm capable of
condactlng psycnological and political Erfare aimed at tho
accomp ]1chmont of AHD missions ( a) ar (b) In Chile; a8 80 t out
In Section II (paragraph 2.b.) of Annex 5 to tho #iD/Pc Strategic
Plan datod 1 Novenber 1951. Tis task is assigned priortty ona in
Phase I (1 Jan 8 30 June 52) i1 the aforenentioned Plan.
II: REFERENCES
h. Budgetary data for thls Project. (ANZX 4)
B; Fleld dlepatch TCS-A-18Ol) outlining the texus of thls
Profect. ((ANNEX B)
C. Headquarters cable au thorizing recruitzent of FUIMINA TOR-l
for thi8 Project as a contract agent. (AiX C)
III. PROPOSiL
A. Statenent
It i3 proposed t undertakc the developre:t in Chtle of a group
or committee composed 0f Chilcan nationals #nich will engago
overtly and actively in enti-Cornunist work and will functlon as
a WHID mechanism for the acccirplishnent of D missions 9) and (6)
in Chile, a3 set forth in Peragraph I above.
Ag the flrat ste? in implementing tho developnent of that committee,
1t i9 proposed to e:gage the service8 Of a high-calibre Nnerican
national in Chile as a contract egent at an arnual salary of
86,000.C0 to
1. Spot, recruit, and manage a qualified indigenous Chilean
wo will act as organizer. of tle aforsna:tioncd COnittee,
a7d
2 Act as cut-out and principal asent for #C , in the
opcrations_ of the conmittee.
At such time 88` developnent 0f the committee Karrants the
neceerery 0tep8 WIll be taken to rlece tne com-fttee In the
proper re letionShlp Nfth tbe DIHA B7AS foundation for purporee
Of cover and gupport .
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8. Eackround
Tle #ican national in question i8 3 fomer wD/oso
agent FULMINA:OR-1) of proven @bility, courag0 ard
discretion.
FULMINATOR-l'9 presert occupation in Santiago, Chfle,
provides him wit . excellent contacts and cover for
carrying out the tasks proposcd for hin above:
He i8 part ower 0f, and holds the con trolling interest
(518) in a Santlego printing and publishing' establishment
tha: publishes an >nglish-lazga-e newspaper, Jhe South
Pacific Matl, wich FULMIAJOR-l edits. His eStabliehent
T welT eGuipred to bandle a great variety Of printing
jobs.
C Current Statue
On 23 January 1952, MD Headquarters authorized its
Santiago Field Station to hire FULHIVATR-1 as a
contract agent for 8 pericd of at least two years
(See A#EXES B ad D) J In hls agent capacity, FUUIMINATOR-l
Nill underiake to develop the corittee referred to aoova
in Peragraph A of this Outline.
At such tine es that development warrants, 8 Aendment
to thig Project containing 3 statenent of all nev reguire-
me: will bc submitted to conpeient au thority for
mproval.
IV_ RECOMMENDATTQY
That there ve allotted to this Project funds in the eount of
70),00 to provide salary for FUL"INATOR-l for the remalncer of
Fiscal Yaar; to cover the cost of bringing hin to Washington for
a period of corert training, provide his per dien allowance mhile
here and transport hin back to Santiago, Chila folloving that
training period.
OPERATIONAL DEEAILS
A. Area of Operation
Chile
B Cperztienal_Control
1. GD Headquarters will exercise final control of this
Project, and &ct a5 its support unit.
Hce
ts,
{,
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2 The cield Station, Sanalago, Chile, wili exercise
floldicontrol Q: Pro.ec} oprrations i accorla ce Nith
instructions frn Feadej artcrs,
C, Personnel fecuired
One clonred, witti:g a5ent to ect as Prvect prircipal as0nt
and cut-out FULXNAiCE-1) .
D. Conunications_Plan
Aveilable KD pouch &n4 cable facilities retreen Haadquarters
and the Santiego Field Station.
E Support_Plan
1. Iratning
The Project' s principal agent will raccive approxinately
one month of covert training In iastinston, D. C: and
return to 8 iile. 411 exenses in crectioj with this
training ere to be borne by WHD.
F Zeports_Procedure
Progress reports will be s-bmitted to #KD #eadquarters by
the Santiago Field Station in accordare #ith #eacquartars
directives.
G_ Cover and Security
1. Cover
FULMINA TR-1 will remain in Chile in his present business
tion; As a covcr 5 tory for his trip t {iashington for
covert trainirg, FULX EATOR-l has acvised that an option
has been bought on one of hig pleys erd that a trip to
New Yor' to discuss the play with tre prospective producer
is completely logical-
2. Security
On 10 January 1952, ND received an CPC Operational Clearance
on FULKINA TOt-1_
Y
#u
posi
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Cowmufcationg betieen FULXI AT:-1 and the Santiago
1leld Ptatiun wi_1 at 0ll tljcs be carried on by me ans
of a secmre cut-out:
Since FLMEAJOR-l' $ cowcr 18 'his overt bisiness sttuatlon
In which he i9 already establicied, and since that situatlon
provldes hi with printi:g and publlshing facilities, it 19
belleved the: good operational security ca7 be maiatained
with a mintmw Of efrort in thls Project.
VI. BUDGE? QATA
See HNNEX A. (OPC For No. Lob) .
200,
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SECRET
ROUTING AND RECORD SHEET
InSTRVCTions; Ottrvr d*s ;Glhcas stulJ bo Use& In *0 "Tot colunin Uicur cl-h commont J fino should ta dtawn across shect
#rd ejch commen: recite stenresm ; mikh {ha numnbo; in tk0 *To- clurin_ Exch aitiecr sh Iid mnitial (chzck mark insulltirt)
tefarc Iuithor routrs TR s Rov:r: 1ng Record Snce: should bc /c%u.ncd to Resustry.
FROAI; NO
0 0 /0 0 (Cnxs
DATE Esh+444+4ise
RooM DIte CNCERS To COMMENTS Yo. Rtc d {Wo'd INITALS
Wh d clbue co(iaa4
a cta ~lel.
J0ub-| VL OWUALI[ {IJITte } Hnc FoRm No. S1-10 SECRET Feb 1950
~ica
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SFCRET
Sicjruy IxFGrmanox
Febrary 1952
NZOZANDUIL FOz: FHD
SUEJCT: OPC Froject PBGRONEL
1_ Subject project has reviewcd by this o.fice and
no comunicetiong [ccilities beyond those already exlsting illL
be requlred in gupport of the project .
2. It is inbended that thig renorandum shall constitute
the Communications Anrex for PBGOVSL.
imuo
J 4S L FISHZ
0D/or / Cocyo
OD/OF / JIF/ mhj
Distributlon:
Addressce oric & 3
on/o /Cerpenter 1
o/0?/Fisher 5 2
sD/z 2
Cerity WHFGRIATHOM
SecrET
becn
Ioku
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SECRET
Ircrc" I, ;D Ttcords Icv 1932
EChC %0: mE TzcCD
Kocti:s !ith fgcrt, Rw D LiEVTI% 0n1 29 _ pril 1952
1 To Scnse 0f t.e follorin; text was obtcined arirs
en eftcrnoon Cecting %ith Accnt Iu; GZVII . Fartecimti:s &
tixc telk: rerc Xcssrs_ Srzccr enc Tatton and Agcnt LANGS TM .
Four rajor topics ero discugsed ard Kill bo presentec Jare
In tho order in which thoy Ferc develonod =
2, Einttnz Flurt_Froblez: }r _ LIGLVIl indicated tbat
In two and 2 @lf %0 tlrce ronths cortain financlal oblige-
tlons voulc COcO duo _ Tkcso cozcicted entirely In makicg &
#S,0O0 payrint arising Iroj the purckasc of oquiprent fcr his
rrinting ectabllshmcnt_ Tnis ccuipacnt, whick: cost about
810,000 when purchascd late in 1951, conslsti of an Italiar-
nade Fress, linotyre rachine Szced Graphic cnmcras, tyre,
etc. The rarlet valuc of this equrocnt nrtly new and
mrtly used) is estiratcc to bo et icact /10,000 _ Tho 5= Jf
03,000 represents the total Irdebtodrcss of' LlCEVIF'9 plazt
ad is oteq to a M_ NACIEEZI of Casa Fackonzic B' LLGZVI
Fsy ccet this pyrcnt by either (1) 8C cring 3 Joan frar 6 Fort
Horth, Tejas bank using his slro in fonily oll interests 23 collateral, {2) taking O
a
Chiloan furtjcr , (3) Eetting #e
fron a Chileen bank (wlich %oild involvc an} 18 interest rotey
rate or (4) gcttirg the rorcy clca:lere Coiz"on agreerer Xes
expreszed on the urdesirabilty 0f talini on 8 Chllean partrer
sinco thic would bu 0 security hazord In uny fute FH wark,
end would alcc clinlrate the possibflitv of' ucing the pler: 15
cover for anothez agent _ 15 LiNGEVII, &ckcd ahoit his Frevizus
staterent about leavicg Ckilo after two yenrs, roplled ths: nok'
trero 2s ro Gefinite plan &r (esic i; tlet direction. Ee
{rdicated be KouZd have soce idea ebout the rosslbility of
assistance fron a Texas baxk rithin u Tev wooks_ K_ IAFCEHTN;
also SuEgested tbat Iic would Gladly us0 his earaings for tio
nert two yeers Iror thc -accncy (86,0C0 per yexr if the Agejcy
could pt up the OCQ in 2 lurj? sum Thc printing firn i€
ncw riing 8 profit above the salery wllch LAlGEVIN takes O2%
3 Erieficg_g1 theCorz :ttee: H _ SIYSER discussed tte
overell tasks whicl: LACEVIT 15 oxpected to prrforr. Fuck
crphasis Ia5 placed on tho recd for cecurity in explainirg
this tyze 0f' IH ectivity, particilerly if and wken DTHAEELS is
SECRET
88,C
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2-
troucht In. B_ LINGEVI] na_cctcri thct bic covcr for con-
tccting tie E-bassy I3 Zood, cnd furthcr indiceted that no
urzutlorized zerson in Chile kler 0f his U , S, Govermcnt
acti-dties.
ka Inforzation on FUEE - When qucctioned about the
discretion of FUZLE?, IZGEVII indiceted conplete confidence,
statirg that ske Wa3 vcry cfficlent and would bo usoful in
cssisting iln in Ri work. IAGZVII was tborouchly bricfed on
tre fect that FUELE nrt nevcr Inow of DlIMIE:S or itg cop -
nection LItk the corc-lttce .
5 . Rordg_ard_Deeds: 1r _ L;GEVIN stated t.et tke formt,
paper, type and plotoengreving 0f thls pmpllet was for above
Chilean standards Fe scld that Chile had only one printirg
house capable 0f producin: such work, end no erticts of the
callber exhibited In the parphlet . Ee sugcectcd a Smnlch or
French attribution on Poorcr papor _ The rcproduction of posi-
tlves Ls als0 not done in his plent, but rst bc ccntrected for
at a Sentiago photoengraver's _
6 Eonk Betails: B Li: GZVIL; J1a6 opned 1n account at
the Chezlcel Rnk: crd Truct, 7hth Strcet and Mdicon Avento,
Mew York City _ 4ll -uturo Ionthly nyronts Ill bc rade to
that bank, begi Eth tlc payrcnt for April_
Leo Ez Fetton
SECRET
SECRET
rnirg
==================================================
Page 18
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14-000QQ
SECRL_
CCT C=IE
TQ: S.LIiGO ROTIZ
RRO:: : OFMUTICS 16 MAr 52
0U7 77201
WASH 41152
TO: SAGCG CITE: WASRG
1 IIFORK LAGSITI FEADGUAFTERS ATTEFTTiG OFTAI:; LOAN .
2 . REQUEST LiNGEVIX %OTIFY IEiDQU:FTZES FEFUE CCNFLETING
ABY LCAE; AFPANGEEITS .
SECRET
==================================================
Page 19
==================================================
4-QQQQQ
SECRET
ROUTING AND RECORD SHEET
imstauctions: Ofticer designations shoulj bo Uscd in tho "TO" column: Unslcr comment a Iino should b drawn across shoet
and cach comment numbered {0 corrospond tho numbcr in tho "TO column Exch officer should Inituxl (check mark insullicient)
belore further routtng This Routing And Record Sheot shoutd be rotupned lo Fegistry.
from: RO:
OATE
ROOH DTe OFFICTR S To CQYMENTS
No RICD Frd0 JniNALS
2x1a JS
4x2x4%4
Zu
LaLt Pu
PsZLA Xht+I2
9
s0
Lak
130
Cy
JI 4u: I 1 W Odsbdt Tm1t[1ya Incz Form No_ S1-10 SECRET
FED {950
ejch
'ieh
{dkc
0212
f-1?7
==================================================
Page 20
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14-000QQ
28 1952
NEORANDU FQR: OD/co
BTTENTICN: Kr. HJl ]faa Rouland
SUPJHCT: Projec t PBGROVEL , Anendnen t No. 1
1. Forwarded herewith are the original &d tuo copleg Of gubject
avendment an extra copy Of OFC Form Loba.
2. It 18 respectfully requested that approval 0f subject anend -
Rent be erpedited a8 the Project Finarcial De - For lOla, Indicate8
tkat' payment of elght thousand (88,000.C0) dollara to PAIL Da LANGWVIN
must be nade on or about 20 June 1952.
3 . Subparagraph 8Lx Or' the Proposal indicatee tha t a3 a preregul-
B1t0 to Issuance of a loan to LANCEVIN the la tter will be required to
submit a complete nameplate Inyen- o1' 4ll-machinery and equlpnent In-
volved In the Joan transac ti- it3 phygical existence In hls custody,
hi8 title to the prrperty, and -&n 4 "oroxicate evalua tion of it9 yorth
(a8 determined by WHD gtation personnel ) . WHD MtLl bo prepared to do
thla shortly after Anendnent No. 1 Is approved and the necessary fund9
are available for payment.
ba Subparagraph flve of the Proposal Indicates that details of the
Joan contrac t and selec tion of the appropriate legal Instrument to secure
a Ilen On tte nachinery and equlpnent wfll be arrived at through jolnt
agreement of WHD , CCC and tne Legl Dfvslona These financial deteils
will be arrarged subsesuent to approval of the amendrent in question an
vill comprise the financlal plan govering the expendtture 0f the funda
requested.
Ieki6K
EING
CWH
RH_
Kerisaa fvLc/1B/jc
DIstributfon
Orig: ODTcqv
CC } Special Contracting Officer (Mr. Jal: Bischoff)
CM (Hr. Brnest W. Pittman)
Chfef , Branch I
Projec t Mle PRGRCVE MD/Feo
Chrono MDfpeo
Mey
plus
t,
tory
on ,
==================================================
Page 21
==================================================
14- QoooQ
SEGRET,
SicURM{ ATermsT;o"
25 Juno 1952
MZHORANDUH FOR: ASSISTAXT DIRFCTOR FOR FOLICX COORDINATIOR
SUBJECT: Froject FBOROVEL, Proprietery, WH
1, CK_concurb sp nkdng a loaa o U, S. 88,000 with interest
at 4 percent per ann to contract agent Paul D Langevin (pseudo) _
Thlb Ioan Ls to bo fully 8ecured by a chattel wortgase, or wbetever
other 'legal Inatrunent 18 recoenlzed by the appropriete Chtlean
Cour+ 08 eetabLLshing & flrst Len on the nachinery and egutpnent,
valued at epproxdmately U.' S. 810,000, agalnst whlch the loan 18 bo~
made, Princlpal zand: Interect are to be amortIzed in monthly
Inatallnento cf 0: S: 8500, whLch represents th total galary
accrulng Oach month to the agent Tho tera of the loan #ill bo for
the time regulred to Ltquldato principal and interest in full_
2, The contract agent uLll gubmit 2 couplete nane-plate
Inventory %f all nachtnery and equipment Involved a3 collateral for
tho loan along wlth hi8 proof Of title to and 1t8 plgical erlstence
in hi8 Pcs8e8sion.
/4eo2e37Zasgzen
FRESTOH L. SUTPHEEN
Chief, CouercLal Divieion
CHppoDIre
DetributLon:
or1g & 2 Addreesee
1 DDA
1 HHD
3 CH
BI/I
SECHET
Ing
==================================================
Page 22
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14-00ooo
SECRET
ROUTING AND RECORD SHEET
Ixstrugtions: Qfficer desicnation} skoulJ 6o usad in tha "TO column_ Undor eseh ccmient 4 #no should be drawn Ocross sheat
Jnd oach commont numtored % 0asond with thc number in thc 10" column. EecA olikor should :Outia: (check mark insulficiont)
tefaro further routing This Roubcd Jnl Aecord Shoct should b0 (oturned I 'stry.
Trom: No who/Br. I
Dtt 7 July 1952
Rooh date OFFICER"S
No RIC 0 Frd'q initials CoMMMT}
LPPatton 2 IkG {&
JANoel Ll1? Yn
DWHPC 04t2 J=
oD/co
ADC
U WuxCI 0. eTTuRIT {DItW) Qno FQAM NO: s1-10 SECRET FED 1v50
Rer
JUL8
==================================================
Page 23
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14-00ooo
Offce Memorandum
UNITED STATES GOVZrNMENT
To_ ADPC DATE : 7 &y 1952
VIA op/co
FROV chxH
SUBJBCT: Inforation on Paul D . LANGEVIN princlpal agcnt of Project PEGROVEL
1, Pawl D. LACEVIN Ls the principal afent 0f subject Frsject, approved
12 February 1952_ Project PBGROVtL contemplatos tho establishzent In Santlago of
an idicenous ant1-camrulst committee wich, when developed, tll be -pl aced
under DAHAEEAS ,
2, Subject egent vas granted an OSO clearance 3 October 1950, and
proved his usefulness a5 a Cut-out and In a DYCLAVIER printirs operatlon. Sbject
was granted an operational clearance for; DYCLAVIER uork IL Jaruary 1952, end
recefved covert tralning in New York City in April. Since his raturn to
Santiego, gubject ha8 enzared In spotting and recrulting 87 indiserous princlpal
'egent who will Ln turn orgarze the antl-comunist comittee-
3. Subject 19 tho Texas-born 30 year old, owor and publisher of the
English-language weekly "South Pacific Nailn_ of Santiag?. Subject has also had
acting and Vriting experlence s1nco his conpletion of wartime serrice In tho
U, S. Air Force. Subject been in Chile since November 1949 and at present
has 9 ANo year contract a5 egunt for thls asency, Signed 25 January 1952. Subjoct
has indicated on several occaslong 8 continuing interest in obtainirg 8 pernanent
position with thi8 agancy.
4a Due to tho Subject' s travel to New York for training, severel
Officers of IHD have had an opportunity to obscrve and ovaluate subjecta Opinion
on subJect has been consistently favorable and he has inpressed a2l a5 A person
of high intelligence and porsonal integrity. Subject F2s had a varied occupational
background, excellent educatIon, and exhibits exceptional poise ad 8 good
eppe arance,
J. C KING
#je7
has
furua 24
29;8
==================================================
Page 24
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14-00400
SECRE:
ROUTING AND RECORD SHEET
InstrucMons: Officer dexsettars so4lJ & uin ineh"TO" coiuc: UcsAAtnrpt?f @cshoul bc drjwn across shect
idsuro commcn:numtyn .e eronjwth tho numbar in tha "To E4A&Tce s#ocidinitll (check mark insulficient)
totere furthef ;oiitins: Ta:s6yx jJ Racrd Shedt shcul be ritunx:r?
fROU: Ka
ER.31 0942
3b P Wt
Rooy Datt cmanrrs COMMENTS K 'RICD 6x05 INPLS
2Es Reyec
TA0Y 0 CA7uaara ; FORM No 31-10 SECRET
FeD ,930
Rc; #Ta
Yixu
==================================================
Page 25
==================================================
14-QQQQQ
PRET
Er. 3.0 9+7
BENo:NDW FCRi DZFUTI D DTCTOR (TAIS)
SIEXJBCT $ Project PEGRONEL, Arxrdront %o..1
1, Anocdnont lio. 1 to Frojeot FBrOVEL propos8 tba Ioua
op the 7N & &,00) 0t 48 Interest por amn * a etract agont
in Bentiaco, Chilo, An ordor that thl8 acent Eny coploto PAyrant
m mchinor; ard egulpriont recontly Inctallod an tlr pra leo8 .o2
the printlnz OtablLgbront 'Of phLch c24d acont La ele propriotar_
2 To proprloty Of CIA JerdInz ftd8: foP thle: putposo hes
boca RuvLeved by Ooc/E?I vho' Lo Qf 'tha Opinton tiat In p-Analplo
tbar0 ttould b0 no 01 feotton. Tro qastian 6f croratlonal: pca by
Cpo hao boan ralsed #th the #H DIvialon &rd It has bean stated
that +hdg oqupront, consLsting & tio pene , Lnotrva Rachtro,
Spoed Oraphio ercrac, etco, 6an+63 used f0? Opo popagee prOc
cnotion puzpooe30.
3, Tbo quoction & contrul o tho catract azont waj Ucc
cuaced atul 1t hag bsen deterzrinad tint tne Congral Cenesl'0-Of -
{ica 13 boing raquestcd to 08tb1ish Jogel AOcrg Gtereby tho Lian
0 witgaco o thlg equlprent 8j22 bo hold &n #ho nara of' a cute
0ut , In tts event 0f any Intonard #utio: on tko part af tho Crn-
tzeut eron+ Or danzreonent 'botraan tro Rgcnt ard CIA, action can
b5 tniten tn 08MEw control Of' tbo pochdnery .
6, J0 i3 irdlnated _n th3 attschsd nrtrorain Irn &bo Chief ,
#H Dlvlaton, tbe oontsrct 'arent L3 cmsicerodl t be an indlvtdunl
52' hign Antellgonca ard porbonal Intazrity_ For thig apd tke
abora llatol rengons, 1t 10 rocoirendcd tnct Anerd 7nt Ho. 1 *
FPGxCEL be @pproved in tna ano1nt 02/#8,9
FRANLI} A . LTSAY
Acting Acelgtant Dlrootor for
Ralicy Coordlwntlon
o / kofrnhlu
Digtributloa:
FFC 61c. & $
Dp 2
Pro Foldo 8 2 Seaot
2
UC RIMT < 2
==================================================
Page 26
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QoooQ
SECRET
ROUTING AND RECORD SHEET
imstructions: Oflicer designatians tud be uscv in :ho To- Vlutno_ Unjk"r cxch comancnt 4 lino thould b' dnarn across sheet
4njeJchcomment numbered #cofrts ~ Ah :hc netber im tlc "To' colu"m. Eac ' officer should mtiul (hgck eJ1k insullicvcnt)
tclore {urthcr roulicg_ This foutns 14 Rererd Shcet shpull bo returne: t Rray
FroM: No
ER- 3-0941
DATE
RooM DATe OF FICERS To COMMENTS No Trd'd inttials
16 1 22lzllyHRHa !+
JoVIBY U: % COtunxllt {MintiQ Ovet FORM NO. 51-10 SECRET FEB 1950
Opc
Ric
==================================================
Page 27
==================================================
Ooooo-
27 - 3.694 7
St_ ";3M
JVL
{5F2
MXORAWDI FOR: DEPUTY DIREGTQR (PLAIS)
SUBJxCT: Frojeot PZGROVEL, Anendment No, 1
1, Amendmont No. 1 to Project PBGROVEL propobos the Ioan
of tho Bw0 of $8,O00 at 4 interest per annu to 0 contract agent
In Santiego, Chilo, In order that this egent may c omploto peyment
op nachinery and oquipnont recontly Installed on tho proni808 of
the printing establlshnont of which Baf d agent i8 solo proprietor.
2, The propriety ' of CIA lending funds for this purpose bae
beon rovlewed by opo/SRI who i8 of tho opinion that In principle
thora ghould ba no objectlon. Tho quostion of operational 480 by
Opo has beon raieed with the WH Divis1on and it heg boen statad
that thi8 oquipment, consisting of tho press; linotype machlno,
Spead Grephic camores, 0to,, can b0 ubed fOr Opo propaganda prov
duction purgoses.
3, Tho que 8tion of control 0f the contraot agent Wa8 d8-
oug8od and It ha been determined that tho Gonoral Coun0l' g Of-
fic0 18 requested to @stabllsh logel meang whereby the Hen
or mor tgago on thi8 gquipnent will b0 held i tho nan0 of a Cut-
outs In the evont of any- untoward action on tho part of tho con-
tract @gont or disagreanent botwoen tho agent and CIA, action can
b0 takon to a9sumo control of the machinory-
4, A8 i8 indicatad, In the attached namorandu fron the Chief,
FH Dvi s1on, the contraot agent i8 considered to b0 an individual
ef Jugh Irt elligonoe and porsonal Integrity: For this and the
abovo listad reacons, it 18 rec omonded that Amendnent Noo 1 to
PBGRROVZL bo approvod In the aount of $8,000.
YaznEAf
OZ
Aoting/Assistant Drector fot
Policy Coordination
APproVZI
/742 Do
_
16
being
==================================================
Page 28
==================================================
14-00ooo
SECRET
ROUTINC AND RECORD SHEET
imstaeetioms: Olleccr &es cnubons : Jull W0 usd in t Tv " cohumn. Under ejch comtert Iino should t drJna across shcot
and cach ccmmcn{ numbera j:rot; 6mo" Ifh th? qurnb~- p"TJ- :mi Each olfice; shzudin {iul (cherck insuflicient)
belcee fWvthar 'u#: Th"s Rrex7:AnJ Kocord Shoct acv' &e rafurned t hegustry-
From: m ER
7-777
Dte Z222
s 2
Rcon DATE OFFICEA $ To Ko RICD Trd"o initials counents
f1
enikimt #VmuaGrnci FORM NO: 51-10 SECRET FEB 1953
Iatk co:_
od/eo
==================================================
Page 29
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14-000QQ
E J*i)
Socunty
1B July 1952
EXDRI FoP, Socrctarys Projoct Rovlow Coralttee
7'
SUAJCCT FroJoct POCR:ELL, Arendcnt Wlo 1_
1, Tnlg "LLl advico you that DD/p approvad tho above tosav In
tho aoint o2 #9,0.
2, Tta n i9 actually 2 loan to a priocLoal acont at k% tntercst
ncr anIA, renay:nt to b 0rfcctintod In %5X ponthly Ingtalignte out
of tna ccntract accnt' 8 Jlary with the aroncv, !hich anount? to #b,0
por ennaa
3. #w agont: 1g' lecated In Sant1azo, Chtle, Froxcr errangcrento
In ccnnccllon vith tho abova {Lll bo raclo b CCC and the Cancral Coungcl'9
cffceo %hi8 mttcr :a3 clcard ilth tho labtur to moprovil.
iiAk5 T TFTE
Acting Cnicf cf Plano
Office cf DD/r'
HNT ach
1J Jilz 1952
Digt :
Jriginal & 5 Secrutary, Prc
Cc: ProJect Feldur, ob/co
Cc } Mac. PrJect Yoldor, DE/?
1
c: DE/? Chrono
CC} OFC /I
SECRET
Enrwi: y I; (3malzx
6
SECRET
Inkozmsticn
prla
==================================================
Page 30
==================================================
14-000QQ
8-EC-R-ET
SECURITY IXO?HA TION
DDL_Eroteot_Azzrezl_ Sheot
Projeot Cryptonym PRGRCZL Amondment
Sub-Projeot Cryptonym
OrigInatiog Dvislon "EST2X; !F'TsPEwRK LIVISIOM
Approved Dieapproved
J4i
Da to
Camont8 !
S-E-C-R-Z-T
L
Noo
Jndghanr
==================================================
Page 31
==================================================
Ooooo
S-?-C-R-E-T
Security INFQRMATIOM
Eratest gutline Glcarance Sheet
Project Title FCTZ Anendrent No. Project No.
Develoned by:
LeAse"_
Whd/opc &.1 2 3 1952
Cise: OfT Cer UrganizatIon Date
Revlewed by:
Fanah
Jzhedldrv 43lIIS
Concurrences:
Jte~j DAuHIl> < 7 7 19s&
Date
cn
EesExEiL
Aaahc=
Date
Date
Datc
Date
Aprroved suhject to conditions below t2
CondItions of approval:
OPC No. 1103 (Rev. )
23 Aprtl 1951
S-I-C-a-E-T
(4#
L7z
wAx
k714
Form
==================================================
Page 32
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14- QoooQ
3 E-C-R-E-T
Secnrity informzfior
Project TItle_ Arendrent No. Projec & Ho.
'r FolloIng Llne and Staff CfIcers of tha Kestern Hemisphere Divfelon Hve
Siercd &nd Corcurr WIth Thls Project.
Concurred: Psychological Warfara Officer HFD
Da t
PolItIcal krtare Officer WID
Dato
Economfc Wartere Ofticer MD
Date
Sebotege %lrfare Ofticer HT
Dato
Countersebotage OffIcer #D_
Date
Paranilitary Officer WHD_
Da to
Plene Officer P / 0 WD
Date
Budget OffIccr P 0 #mHDD 122=
2p MAY /75 2
Tuza
Project Coordinator NHD
#ablfS~
Chlef P & 0 IHD
A1teals2
Conditiong of fnnroval
SoE-CoR-E~T
Secuitv Infoiration
==================================================
Page 33
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14-000QQ
SECRET:
EZELZI
Froject_ FCZZ Ascrrent
`zo_ Gincicl
I, AUZ@EIZNTIC
Saco as Froject FEZCVEL _
IIS FEFZTELCES
1, Sar 45 Froject FEGCIEL
B. Budgetary data for tris arend-ent (Annox 4)_
C Fero op -neetirg #ith Agent Faul D_ LAECVI (KLzzer B) _
D_ Cable to Sentizso Station on the loan to Li;;CSTT (Annex C)
III _ EOrISAL
4 _ Statenent
It 48 proroscd tlat the Agency Jend the S= j2 #8,000 In
U , S , currezC} , et 47 per an70, to contrect agcnt, Faul
D. LA GEVIE , in Sectiejo, Ckilc, i: orcer t.at thio &tuut
rey reet ccrtractul obligations .ithcut enargering his
prescnt coter ,
2 , Tho proceeds 0f" thls loan Kould ta uccd to czrjlete pay-
ment on m: clirery and equinEent reccntlv installed in tho
leuscd pre-ises of the printirg establishzer: of' whlch
LNGEFTII is row sole ` prorrietor_
3_ Tlic rrincizel &rd interest of the loan Fola.tx onortized
fron the eztire Foceeds of Li_CEVII s sals; ror thla
agoncy of &,8CC per year , et the rate 0f #30 per month,
4 Tho loen ould be guarenteod by & chattel =ctsge, or
vhetovcr legzl irstruzcrt is custorarily ezplozed in
Crile to es eblish a Lien on the assets ageizst which the
loan would ie Eede .
5 . Details of #e loan cortrect end selectio: 2 an eppro-
Friate logal irstrucent to secure 0 lien 0= ~e rachinery
and equlnrert: rould be arrived et throush j-c: agreercnt
of 'FD, CCC i7d tre Legel Division. The e--sting agent
SECRET
3
==================================================
Page 34
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14-00ooo
(a
SECRET
contract Lftn M'#GSNT: rould &so k rcvle: ed folntly by
rejrcfortztivcs 0; thcs} divcior: +ith 8 viow t0 ircor-
:wreting er codlfication 1ici: richt bo rccoszarz 85 a
result of t0 aCCrt's etcrinc Into a loun fireercrt with
tke ~ccrcy _
6 45 a frcrcculclte to the Iccurce 0f 0 loan, IJI'GEVIW
rould bp rccufred to subrit 2 corplotc nare ~plato Inven-
tory of' all iz cl-Inery and coulrront involvcd in the Ioan
tranczction and Its physical existezcc ir Hc cus
Hs title to the property, end { epproxdrtc evallction
of Its worth would b doternined through IID station per-
sonnel _
B, Beckground
Contrect agent, Faul D . [MAEGEVII , 18 the sole Okrer and editor
of tke. Enclish-lancuacc papcr , South RclfLc %utl, which 1s
published veekly in Snntiago, Chile . Tne Frirting of thlc
publicition wes fortcrly done by 2n cutsido firt . Cesiring to
hrdle both he Own rinting recutrczcnts erd to crgegc in job
printing, LAEGEVII obtatrcd cqulgrent fron ar irdl-icual who
cxpected to re corrcnccted tlrong: 2 nrtncrchlp in the busj -
nes3 Fowcver sciots fllress rs prevcntcd tke Ircsjoctlvo
rartrer from cnterinc tho busiross, and hcc forced LECEVII to
rcct the financial obligation nlore Tho rcpayrnt of thi8
obligetion will_reculrc LAEGEVIl cither (1) to accept 4 Chllcan
fertrer in hic busirccs or (2) to cbtain a loan . Thc rcqutre-
rents of cccurity ori] tkc neez for flexitility of ojcrotion
mllftate aginct brincirg In e partrer Xoreover a loan ob-
tadned locally through ordinar; corTcrcicl ckannelc, 1.0 .
bank:, xoulc crtell exorbitarnt intcrest tes In adcitie
sirce 2 tank lcan would elrost ccrtairly: be 0f okort-tcrna
duretion; there +ould exist tke conctant tlreat of loss of the
covcr buziress tkrough 2 possible refusal to renew the loan.
LAEGEVII has ccntacted a banl: in Texz: In an atterpt to secure
8 loan, offering &8 ceaiity his chorc of 3 farly intercst In
oil-producing lcrcz_ 1t cpzears doubtftt that tlc bun:
#ll grert the loan_
C Current Status
LCEVIY Wa3 idviced, ulile in the Unitca Stctes for training,
that Eeadqucrter? xoulc inrectigate the pocsibilities of' an
SECRET
tody,
rc" OD ,
Tezas
==================================================
Page 35
==================================================
14-00ooo
SECRET
3-
4e-c Jcnr (See inrzex !) _ itr crsiltation ith tko Cozer-
1# 2 Lcfl Bi;i::crs, :iD atred LZAEIb cablc, E:tcr
X: res; tc Gfle, 7ot to cc5 Ze:a 3 Joan Irc;_crcztc !ith_
c;} ; Arz Eecdqiarters (Sce Art_
3
It #5 dcclicd tiwt
4 &ce #C t*o 'Gczc, {ccr tic, terzs crtlired in tkc proposel,
7os23te: t: best soletoz Ic7 tko 4j:7 Tror tllo ctandpoint
&: 805it, tnd t*t sLch 0 Joau Foald ;lvc t.o Aconcy cvon
5ectes c-trol ovcr tc tC wo' Qlist8 .
IV _ TBCC.ZZITG
It is Ioustzded tket &0 S- Qf #C,C1 ta nnce.availeble c: 4 loan,
ct 4~ irtcret, to contrect EEcrt, Zau D. I GZVIN:; , tho loan tq bo
socrec b € Jen on rchine-- crd ocuirrrt vclucd at_oprroxdrately
{lC,0r; Ertarect &nd Trifcihal to b0 arxrtized at &*e rate of ES00
por 3o-el, tle full arount Of #gent'9 salary:
OFEECESSi4:
Sarc &8 %oec# PSGRCVEL _
II_ BUDG_Eti
Sco Amer 4. (CFC FCRN #o . 4Cka)
SECRET
eEzt
==================================================
Page 36
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QoooQ
SECRET
PrOJEGT FINANCIA L DAITrl
(This dsta 6-Y Zor ezcecd SECEZT cla3.ilication)
Project Cryptonym_ Pagz ,1 Fiscal Period Cavered 1 Juno 195 2
trougu Jo June 1957
La 5. Patton H/CRC &inch -1
Case Officer Responsible Staf Or Division
A PERSONNEL REQUEREMENTS
Tndicatc nurbcr ar] typc perscnnel requircd and estimated total
compensation for galary, allowances, travel, and relatcd employee
benefits. )
-Type Number Estimated Total Compensation
stafi Employces
Stnff Agents
Careei Agcnts
Agcnts Nono
Consultants
Detailcd Pcrsonnel
Miscellaneous
TOTAL
B SUPPLIES, MATERIALS, EQUIPMRNT, AND SPECIAL SERVICES
(ndicazz (he type ana esti:nated cost 07 materials and special szfvices
required to support the project. ittach a list 0f special equiprent
rcquirements, i Jvaiiable, )
None
Tota} Estimated Cost
CS OTHER OPERATIONAL EXPENSES
(Indicatz volune ang ritre of such cxpenses, such &s (1) maintcnance
of tivo operational houses abroad, (2) hirc of approximatcly 10 foreign
nationals for procurerent Of information, (3) spot purchase o
informction, etc.)
None
Tot] Estimatzd Cost
OPC Form No. 404a
9 November 1950 SECRET
of
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14- QoooQ
SECkET
D_ SUDSIn} OP PROPRIETaRY PF YmeNtS
Tf Zunds aTc +0 b'. {urned ovr to {Mividunls cr groups in laFGe urp
slim $ tp be expended bS tha individu:ls or eruups at their dliscretion
to accomplish Jn agreed-upon objective, explain the trpe' of financial
accounts, facfuai {tcation, or 9tat In6'f} if a2y, othcr ihen 8
reccipt for the lump surn; which will he cbtaincd from such individual
or grcup. )
TIno sum of 8,0O.00 19 to be pald to contract agent Paul D. LUGEVIN
in tha form 0f a loan &t 4% interest; both interest and princlpal to
be axortieed at the rte Of #500.C0 per month: Tno loan mill b0
avidenced by a loan contract ` algned by LiNGSVD and the agency.
Total Estimatcd Cost $ 8,C.CO
E FUNDING REQUIREMENTS
(Show approximnate dates Tunds will be required, if known, and indicite
whether funds will 'be required in U. S dollars, specific typcs of
cign currency, chccks, bonds, gold, or some special type Of nego-
tiable instrument. Indicate any special security requir-menls or
special mcthods of transmission anticipated in connection with funding
tbe activity- )
The above anount (US:8,00.00) sball be pald in & lump gu to tbe
borroirer, ` preferably by check deposited the Cherical 2nk 4nd Truet,
7lth Straet_erd Yadison Avenue, New York, N.I., On or atout 20 June 1952.
F_ SPECIAL REQUIREMENTS
(Within sccurity Trnitations, list any other fcts or circumstanccs
which will enable Special Support Staff to lend adequate logistic Sup-
port to this project. Indicate specifically the "Rush" or "Timc
factors involved. )
Aull anoit nust be on or &bout 20 June 1952
G. Funds requircd for us& in Ficld 8,000.00
Funds requircd for use by Hq.
Tot-l (this amount is :lso tctal of
A, B, C, and D above) 8,CO.0
OPC Form No. 404a 3 2 3
9 November [950
SE C RET
Veri
for -
in
paid
==================================================
Page 38
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14- QoooQ
SEC?ET
PROJEC'T FINANCIAL DTA
(This data may not ezzeed SECRET dhsssific:tion)
~m};
Project Cryptonyni Fiscal Pcriod Covcred 44
195
tbroisE 30 June 195
Lalan #Ez 'Nuast_
Case Oficcr Responsible Staft or Division
Ag PERSONNEL REQUIREMENTS
Tndicate number and type of personnc[ reqeired and estimated total
cornpensation for salary, allowanccs, travel, and related employee
bcnefits. )
Type Number Estimated Total Compensation
Stafz Employces
Stnff Agents
Carecr Agents
Agents
Consultants
Dctaiicd Pcrsonncl
Miscellaneous
TOTAL
B, SUPPLIES, MATERIALS_ EQUIPMENT, AND SPECIAL SERVICES
Tndicaze thc type and estinated cosz 0f miterials and spccial 521Vices
requircd to support the project, ^ttnch a list of special equipmcnt
requirements, if availabic, )
33,70
Total' Estimated Cost
C OTHER OPERATIONAL EXPENSES
(indicate volume and nature Of such expenses, such 25 (1) maintcnance
of two opcraticnal houses abroad, (2) hirc of approximately 10 foreign
mtionals for procurement of information, (3) spot purchase of
information, etc. )
8033
Total Estimatcd Cost
OPC Form Noa 404a
9 November 1950 SEC RET
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Page 39
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Ooooo
SECR E T
D_ SURSIDY OP PROPRETARY PfYAENTS
TIc TunTs "rc t3 ba ticred ovir [0 iniicuals cr &rorps in large
suns to be expendcd by #h? inctviducly 9r <r~uPs t their discretion
to Jcconpiish an #grced-upca objective, explain the: tvpe o {inancial
@ccounts, factual Verificittion, or 0tnte-unts, if ar;, other tha n a
rcceipt for the lump sum, vhich will be obtained fron such individual
or group, )
ito # @f ,#,A0.? Xt |& 14 5l? tb 14t610l '4 X Yi"
If %*0 Poct 3: # 160 0 > Li i91026) 2*8 f0korsel #3 Afinlyl t0
30 4Mle 6} 6 F:0 .81 c7#P 2034oo 39 :01 M]
evlaeane b; . Aooa 1248': Ci S*96 = i Jk;$.404 I}a 489r90
Total Eslimated Cost $_4
E; FUNDING REQUIREMENTS
(Show approxi,naze datcs Tu:ds will be reguired, if known, And indicate
whether funds will be required in U. S. dollars, specific typcsof_for-
cign currcncy, checks, bonde, gold, or some special type cf ncgo-
tiable ,instrumcnt. Indicate an; special sccurity rcquirements OT
spccial mcthods of transmigsion anticipated in connection with funding
tbe activity- )
34 Brure Re:t #,0} ~i M J" 2;07 Ret 8
x:trU er, Ts(nial~ Jo ~hany detc [tom 20 1a9 $buz]cel 98 E Tcubt,
788; 58e {s "3;'in; 906 1 "r 4,Y2 A4 pT #hxeW € % 3wE 245.
F SPECIA L REQUIREMENTS
(Wihin sccurity Timitations, list othcr facts or circumstince9
which will enable Special Support Staff to lend adloquate iogistic sup-
port to this project. Indicate spccifically tha "Rusk"' or "Time
factors involved, )
Yul 45nn6 eue? 92# Pr4 ~ 0 A.BLe 3 Jum X952
G Funds required for use in Ficld 5 #,8eh3o
Funds required for use by Hq.
Totel (this amount is also total of
A, B, C, and D above) S
8,0.00
OPC Form No. 404a T 2 -
9 November;ic50
SEC RZ T
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(6qaad 1)
Io @ilo o( 26 Je 0] o,naelc Ierc9 60 Rea) 6a3 60 ean/an D4 0874oc0
iocilly or &57 @ias proJoct 0 f Lro 8DOw , a m1 r-aitire eoaeibla 63p1lellas-
eton LD oer Dabl ]e4lof
Thore 10 6 queotjon 'Efal there A0 0 Gteal @oa] Of Dor# @0 69 *1a Eora.
fta parrailat , for4nelanoJ, orLelmled Kroe ebo ` neurae? 0 Iamlvedd G4 000
Prode >d M160 Ou5 asd .
bvales 2bd 8 89 aV_ bear ata @00 6ad arnla. @etasde, 684 laser0 ?05
Jot ' [ar0rocr S
eeyy 5a0,
(FuvBRiAA)
6
Snf
'Por
6r/
==================================================
Page 47
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14-00ooo
SECRET
C
0
P
Y
Atr Kcsx-325
Chlcf of Missfon, Santiago
Chief , WID
KUGOWN Yittcra
FURIASO-C
REFZREYCES: (a) HCSA-43L; (b) SaGo-8LS; (c) DIR 16626; (d) DIR 17648
1; Ile 13 to confira and amplify reference (a) , that Headcuarters bas
Frepared the initial letter Srom DTH; YAS to Martin 'J. COE: Lis_ Tnis
letter, vhich requests CCKZI;IAS to act a$ the "honorary" DTHAE34S rep
resenta-ive in Chilc, I9 teing sent air_mail to the CCnZIIAS reaidence Jn
Santizgo.
2 As an attachmejt to this dispatch 20 are forir rding the draft of a
suEgested rorly to Ke Bent % COxki ILS to DT!iA EE4s, via afr Eail_ cci#IAS
reed not use our suggested letter verbctim, 8s long 49 he dces incorporata
In hig reply thc ideas contaired in our dratta
3. Upon receipt of" the Jetter of acceptance froz CBZIS, DTHEzs uil}
send CO:2: IS 8 letter 0: introduction to XUNEXRIAI Dnii S #ill also,
at che sene time alert FI:IAI to the anticipited contact, asking him
to CCENIAS in tocch Kith ~UFRIAI-l.
4. For securitv re sons ver are not enclosing corics o? the initfa] DT FEAS
Jetter to C0:AS_ It i8 sggested tht station raka its C+n ~ile cories
of cke letters s2nt directly to C*.EEIAS.
5. In Kia contacts Vith FUMEE IAL &ud YTYSSRIAl-] Cor_IIS wll 78 turally
not disclose a ter knov } edze 0" the !TlL: ES_FUNEaZIAL reletionshlp to
da te than vovld logically he &vailable to him through #s O6n coresrordence
Kitn FT: AEEAS . In order to {ecilitete urdlers- ta:ding retreer CCZ I4S ard
tre. EUZIC'SO-C grour hore-er, tre rext Jettor froz: DTliFYGS t3 CQzUS
vill icclu-e in-addition to tre letter of i:trod:ctlor, copies 0: the
PuEE2fl-_DTEEEAS correjroncence to dete_ H-cecuarters reclizes that this
co res: orderce 18 already ivailable to Cl:IYI:S , sirce corics vre Fouchec
Yitk #CSW-27L, but it 19 tch eved that COEZGIS +ill Ixe 12 8 Tirzer tior
vis--"is ZBARIAI if re car Frocucc his OkT cories 0f such corres; Ozderce ,
dirert Tron CTHeEAS _
6. Since "T'A-e4S/
J. C_ KIXG "D Fa HCi} AF _ JR . [X}ED k". 33S5
CKX cc/ -/E c/? IFK
SECRET
Frt
greu
eosi
==================================================
Page 48
==================================================
14-QQQQQ
SECRET
HCSL-3L5
Fage 2
6 Since DTHAEEAS ha9 vritten to CunErIAS on ble U:af) of a "prevlous
accuaintance" 10 IO% tecones fripera tfve for CCEI4S to be brtefed
DT:; '43 &rd certain 0f its porson-cl: Hcacruartera xoulc tkerefore
Jike to mow the extent of" COElAS' Frasent knorledze cf DTHA ZiS, In
orcer that wB May susply htc wth wha teve r backgrourd Informatlon he Day
need to to convircirg i: hfs role 2s an old frferd 0f a DTHAFEAS direc
7 Headclerters wJ] forward corents requestcd In raregraph L of ECSA-LO9
subsecuent to the actual introduction of COrz;.IAS into tbe FURIOSO-C
picture .
J, C> KING
Attachnent: CWH
Drazt of suggested reply of CORCMLAS
to DTHAZEAS
31 August 1953
Distritution:
3 Sartlago
2 wTi/Fr.I
1 NeAafl Room
1 RI
WHD/IVEbert/ux
SECRET
or
tor .
==================================================
Page 49
==================================================
Ooooo
abledtnza8 Mi
ea-jys
3
Dm
Aee
I 0r0 -roeolvod Ed ernattored 5ow Ld J0teet es 64 @
atcoraly Nlmtlored cee 5e0 atoald 60 0IlLiAs @ 0lto8 6ZFUEA $
69+ I eud L0 proes 00 667e0 00 E 0 1803tev79][gp11mlm8Ir 0r 019 81so
eJon; Gd Dendl:g Fesotpt Of 4ag 036080a5/ {r4ae7 totellb, J g1 6a aeowv
W BCg078,
Top Bora 0184roly 0or806 In @orLi8 ehde 1 taw Baleaload @ Oelio
Jdroroot Mn 4t9 &ood eortt '%f @bo bisdet Led. Ln {0G1 A Lnloraat , Felld?
etn talnleatag eaco I Jont 4 .u; nea Eidell] Inatioesed mn o
Ej obtorvet [ona e4 08per1eqa bor+ In ChJla. mora 1 0 creat aood @13
b0 Ior fust @d eelvtlod B0 Jo0 hato, eneloned In Sow' Jotlere e [
wuld @ler 0 qpuortwntV Quch 00 Jou hbcd proeenled; Edorotm ] 06'
ertribata 0 Poundat koo'0 Proero: Qt apaloledoo
Ia.eorclualon-p67 . ['0 .Lal J mall Jook' fortard 6 Boatlne @d erto
m0 DWal end FKIPHAL -) @ eoon 0 Sou ce terals 06 We 60
Jara of Itrductlon t ths% centlesan. 1 0;700 Q0t 409 (aok 0t hend
Is m} 00 to 60 Do0~ rad V Lorr 0l b@lo7, ed 1 ma 6nbI r the
0alIs Cectlon 1 oxact 6 darim f thle @rk A8 eple Tamutdote W0d:
Mankdog >ou a30L: {Or Your Gorabelot:]0[ confidancd Mn] 00, I 0
try youre,
0322 54
40 B.0
@-
Jex
Vor;
==================================================
Page 50
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QoooQ
SET
2 4
Y
October 6, 1953
Deer FUEERRIAL}
It I8 I privilege by oans of tLis letter, to introduce to you
T Cocd frtend, N. COKEWIAS, who hes re certly, and very graciously,
consented to act as the Foundatlon 3 personel representative in Chdle.
I have taken the liberty of esklrg %: CORENTAS to serve In this
cepaclty pricarlly becauge th9 statutes of cr Foundatlon require that ve
seek the sericos of a U.S: cItlzen to rep: us in any forelgn country
in which ore or pore Foundation grants rav te cperative_ In additlon, hovever,
I earpeetly believe thi8 arrangenent will serte to strengthen the very pra-istng
relationghip alreedy establighed betwcen us &- to 'stirlate thoge activities
which are of rutual Interest to us. I had nct pentloned thls stIpuletion in
our previous corre spondence , but I do 80 cov 1 view of the possible Imtnance
of 4 forral agreerent between propagande Poz_Gile und the Foundation: @
rccc ipt of your promlsed prirting estizevas would pave tho wey for approval
and detafled plenning of an actual grant of essistance.
It is Fy hope and expectation that X5. CCENTAS will call upon Yc in
tko near futuro to present hls rogpects enc 0rS, As our representative De 19
&uthorized and prcpared to discugs all retters of ruutuai concern. 1 _ COKEEIIAS
has boen irstructed to eztcnd to you, to S (to whon, I trst, you
will introduce Mr . COKEITIAS) , and to" jour 5037 as a wnole_ evory possible ourtesy
and assistance_ It is rr sincore desirc thet this personel contact Mlll prove
to be cf corzon bercfit.
Enclosed ycu will find 8 copy Qf letter of this date, to 1_ CCKTTAS.
At the sqie tire, I an sending }_ COKETAS 2 Copy of thls letter to you, vell
a3 copies cf our previous correspondencc, 80 tzet be nay familiarize himself with
developrents to date.
Trusting that you an2]Sr. will receivc M . COKENIAS 2S our
representatlve in the gefe spirit with which he nzs'offered to serve and hoping
that this arrangerent will mark the beginnirg c: 2 worthwhile and enduring
ascociatlon, I ranain,
Vezz ccrdielly yours,
DEELERS
Cc} COREETAS
:
Sccur ty Dle"tk?i
'sent
cost
es
==================================================
Page 51
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14- QoooQ
83
'ie
Santiego, 31 de Ctubro d0 1953
DIAREAS
epreciado genor
He tcnldo el plecer de corocer al Senor CORETAS. 21 m ha
dicho Do 0s neccsario quo mis cartes gean escrites en ingles, lo quo
fecilitara nestra cor-e spordoncia ptes rs conocirdertos de la lenqua'
inclega son tan rudlrontarios qie rie vela precisado-cada vez, ,& buscar
tn enericano, de' buene volunted y corfianza, que me_ tredujera las
cartes que le ' ho-_estado orviando. Achaques de salud hend cortribuido 0 no
responder oportunarente, COmo hublera sido.nl deseo, sus cartes.
Ya estanos 0n' contecto con el' Senor J esperamog
Ileger my Ivego & un Ontendini ento pare prosegulr con nuestro proyecto
de reeditar el pcriadico, "Por Chile"
El sen r COKENIAS le &n-ierg mI pronto un resuren de 1o quo
astanos acordando.
Se despide I afectuosarente , S.S.
FUiEPRIAL
(above letter by FUEHRIAL ecknowledges that he hes been introducod to
CCKENTAS &rd that the latter will senc to DTZABEAS shortly 8 resume of
PPC plans. )
SET
wriousi
;
My
que
anigo
tbe
S-cir:
==================================================
Page 52
==================================================
14-QQQQQ
X; 3:
Eglozt Eu:Line Gleuronc? Sbaet
Pro Joet Ttlo FUZIOSO G (EGzklunlsont No. Frojoct No.
0_
baizrZ221
"ir 18 € ~xr 1933
Dovoloped by
Organ) +at1on Da t4
Cago OffIoer
RovIeued WJ:
~enusUlAL 8c54#
12
I'$y
Poro) Broroh ChLef Da
Crpouronoob}_
11
S4
ERp wv/7
~ialoo "LeJaxfosus
Mbull
Luwi
ZIcke_228_.*t
Furgy eubetdy renytre= particlpatior Dam
STZLzz%L
C/Comme rcil Div . Data (Peleeaa_E
S& 29
Oe 'j%
(peless
3
2 D_ Sy
Lato @ubget DIn-Aaa ~tc Sselau Koc# %, /0 ~ 340.`Y)
4 ppnevedJubjoatFopondtttons_ha Culs
CFO Ea
76F440
nditlorg 01
AYPoradtun
CuAAA 0
42142 .?15Q . SrY)
"-4
177Q"
14=ACe Ua 3x'Sy
SB-C-Z-5T
#|
Sc
"4
Baeao_'5
# >
Lels
==================================================
Page 53
==================================================
4-Qoooo
s-%jKbT
Sncurity Infcriaticn
(PIC OTEL)
Projoot fltlo_EWIAEC _ C Amyndmant Xo , ProJect No
n.0 follontng Lne End Stuff OfIcerg of ba Roatern Homfophoro Divlelch have
9sgned ard ccneurt #Ith thle projeot .
Ccnourrod' Peychologtcal Rarfaro OffLoer FHDD
MawBL_LL_Czuxs 25522
Dato
Econorie Rarfare Officor MHD_
Data
8 botege R-rfere Officer HHD
Da €a
Countorsabota 0 Offleer RBD
Dato
Rjamilltary OfIcor FD
Dato
Lator Officer Hk_
Dato
foglsticg OffIcur MH
Dato
Budcct Officer Fo MW_
Datu
Flans Officer Peo XHD
AAbeusla lc
2453
n: to
Projeot CoordInator -Kil
338
Daie
Chef , peo THD'
Dato
Ccnditiona or Approval
E-CR-EcT
==================================================
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QoooQ
SEL: -
Srcrity GVTv
2 G
PROJECT CUTLIIE
FroJect: FUICSC C (PFCRCFZL) Arndront Nc.2-
Type Oeretionel
I, XUIQIZATION
Boslc_Brogran Authcrieation
1, Baslc project PECROFSL wes approved on 12 Febr7e7
1952 for the egtabliahmnt 0" a schanisc cepable af conducting
LUGOWT ctlvities .atred et the eccorpliahrrnt af HD nissios
(a) and (b) In Chile; es set out in SectIon I (paragreph 2 b)
ar" Annex B to the HDD/RUCC Strategic Plan dated 1 Novenbar
1951. Thls task Vas assigned priority one in Fhase I (1 Jan,
30 June 1952 ) In the aforerntioned plen. Dunds in .the anotnt
af $+,700.00 were ullotted to tils Froject, to provlde salary
for contract &gent Paul D. LASVIN (FUHATCR-l) for tho
rereinder Qf FY 52 , to cover the cost of" bringing hin to PBZRDE
for a pericd of covert trainlns provide his per dien allowence
while here and to transpcrt iin1 back to Santiego, Cliile,
following complotzon Q" training-
2 Anendrent No.l to besic project PRROVEL was apjroved
on 1 July 1952 for tho arut of" %8,00 (later reduced to %,C0)
to be Rado evailable s 2 Ioaz, at 43 interest , to contrect
Paul D_ LAICEVTN; the loan to be socured ; & lien on mchlnery
and equipent velued at apprati-ately S1O,O0O; interest er
principal to be amortized et te rate of #S00. per xonth, tne full
acount of the agont'$ salary. Athorization for PEGROVEL Acerd -
Cent No.l was the sa18 os that for the basic project PBCROVEL
3 Tho _ 1954 NH Operational Frogren, epproved by Chief ,
KUEARK On 10 August 1953, autborized 8 maricm expendIture &f
810,000 for thi8 project durirg FY 1954.
W
SZ0
asent
==================================================
Page 55
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Qopoo
SLET
Securily 'nl-iton
II REEZZCS
4, Siio a3 for baeic Prcject PECROVEL
B. Budgetary data for thlg azendrent (Annex 4)
C. DTABEAS 4 FUNTHRIAL corregpondence (Annex B)
D: RCS-W-345, with attachmont (Annex C)
S.ET
Infr?iigr: Security
==================================================
Page 56
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14-000QQ
04
Sccr Icicrtatir
~6 3
II; %E PROPCSLL
8 Staterxnt G tg Proposel
In ti6.c jroject PICROVEL, It Va; proposcd to
undertako tte ccroloprent in Gule cf n 6*042 01' - comtttoo
corposcd &: Cillcan natiorals whicl Kould Ongcco overtly and
actively in ti-FCGYPSY erforts &c: woald frnction 83 a FKD
rchanisn for tho acco-plistrt of HHD rlssons (a) &nd (6)
aforarkntianed, As tho fIrst stop In Lplorent_ the dovclop-
rnt of the corrittce, it Kes proposed to CnEase tho servicos
af a PBFRDS ratfonal in Chilo 8s 4 contract acent wose task
wes to solect, sxd exercise subtlo once over 8 quolified
Chtlcan, the latter to act a5 the organlzer of' the corrittee.
It was furtber stated thet at such tlz 2S developnent af" the
comittee Karrants, the pecessary gteps would be takon to
place the co_ittee in the prcper relatlonship with tho
DIABEAS foundation for' purposes of' covor and support. The
provislons 0: the foregoing ar0 now reviscd in accordanco Witw
the proposal Q2 thle arndrbrt a5 set out below. Tho overall
objective Qf" tle basic projoct renulns unaltored.
2, It is propozed, in this Arzendrent No.? to Basic
Froject PECRCTZL, that WD furnish teclunlcel end financial
support , not to exceed 810,00 during Fiscal Zoar 1952, to en
indigonous {rcup %f Chileans for the purpose Of' aidirg thle
group in its orert anti-BCGYPSY and att-BICHT KUGOY_typo
ectivities. HZd suppcrt will bc specifically designed to assist
In the rC-ectiration of tho group elong Its original lines and
to foster bv Simpport perlodically edvanced, the revival 0f the
group' s afficial organ, 8 veckly ncws ragazino _ It i8 antici-
pated that tie irdigonous graup vill evontually also serva 28
a rechanisn zor tke` channelic€ of WHD support to other worthy
groups with si-ilar ajms. (So Annex C):
8 BeckEroud
1. In 1947, 9 grcup of influential Chilean busincss and
irtellectral Jezdcrs for= a lcgally ciartered orgenizatio
dedicated to 21 overt and ective &nti-EGGYPSY ard antl-BIGHT
progran throic: use of .all txpes of KUGOiN cecla. Tlle Group
published an eet1-ECCYPSY veekly ncws Iaguzine desiened for
vorking class audjence. Tho ectivitics 0f this group,
including publicction of its official organ, vere leter
suspended a3 9 rasalt of fingnciel ditficulties, public golicl-
tation &nd subscriptions at the ticc, the only source af
fids.
2, Zhrccgt: thc encouragezent and subtle direction by
&r
Jcho;n;3 Air
E""
ing
guice
Ted
thc
being'
#iny
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14-000QQ
"0
Securux Ibmxtivg
Moslon Santlngo, working tlr"och contrect Paul D.
LLZGEVIN , FUEEZRIAL, n unwittin: Calletl With excellent
contac in bucincss &d I:tollectunl circlos, llg gucccedod
In ro-actirating ti:o former organization, has rccontly
approaclicd DITAIEAS with a rcquest for support for thle group' 9
activitiug.
C rrent_Statu:
1. Tll provigiono of basic project PEGROVEL and of
Arndment No.1 hawo bcon fulf:llod Contract Paul D
LAIICEVIN has accormlished his nlocion, that of' colecting &
subtly gulding & Culean cltizon a3 tho indigenous organizer
of tho corulttee_ The loon to LAIGEVDl, providcd under
tormg of Arxndment 1o.l, has becn In full, ond the Bervicog
of' the contract agent, for thls project, woro ternlnated a9 Of
31 August 1953:
2 Tho present carmlttee composed of Influontial Ch:lean
citizeng, has bcen in touck uith tho DMIATEAS foundation BInce
Farch, 1953. Tha Initlal contact and gubscquont corregpondence
with DTHAEEAS havo been handled by FUIERRIAL, wule not
a merbor of tho original (1947) proup, 13 &n outotandtrg
cariceturist and satiriat writh abundant exporience in
jounalisn and publLching, an Io neg takon tho initiative
in re-forming tho once_active corlttee.
3. DTHABEAS is crrently awolting reccipt, fran FUKRTAL)
Qf" 4 detailea estinato of' financial support needed, to include
costg of the froup' 8 wockly rews magezine The
publication itself will bc publishcd &nd editcd by FUTEBRIA-L,
a dynainlc anti-ECGYPSY indivicual who olgo publishcd the
official Ortan Of' the '1947 orgenization: Upon recelpt of the
abovementioned estinates, ond Ing thoir rovleu and approval
by WHD, DTHABEAS should be prcpared to extond technlcal ad
finnnclul gupport up %o tho amotunt of S1O,000 pCI annury It
19 understuod that cuch WHD support, chonrieled through DTIIAEEAS
#1ll supplerent at lcast an oqual amount which is to be raised
Locally by the FUERRIAL comittee.
La "Contract Paul D. LACETDT has been replaced,
as the .cut-out anc principal egent for WD, by Staff Agent
Mrtin J COKEITAS Thc latter 18 presently bcing intrcduccd
into the operation a3 thc Chilean re prescntative of the
DTHABEAS fcundation; this 1s done by Ireans of' corros-
pordence between DTHABEAS , FTNEERTAL, and M'artin J. COREiIAS.
Once MD support to the' FUNEZRIAL group is actually extended
by DTILAEEAS, ` COKEITAS, 'thrcugh the eercise Of subtle guidance
made pogsible by his capacity as 4 DIHABEAS ropresentative ,
'n;waron
azent
andd
Jgont
tho
paid
who,
ting_ prin
pend=
agent
heing
==================================================
Page 58
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QQOC
XuT
S ~ cormation
8
wili # Jast Ini I & control Qier trc activftfeg
o1' the Erocps
D, Advuntates_te_te_derdred_bx_KUGOWI
1, szportirg the activitios at' the FUNEIIAL
organizatic?} HD 0tll obtein tho services ar a SQClU
iclunis: iCiztt_ ct @DORE Intcrost, capable at" corducting
ettonsfre FzAm} activities On an ovcrt anc Indigezous basis.
2. I: adrition to etecution of" Its own KUGOWN tyre
progran, #0 FUNEBRIAL group Wtll BCrvo 09 the focal point for
flnd anc ciroction af otiler KUCOwN activities carrled on by
other indlgenous Croups harinE sballar atrs. By ertonsion Of
support to o*ner such groupS , tho FUEBRIAL orgen fzation could
thus becon tra nucleus of a ceclre KUCOW netrork, requlring
no dlicct contact by .M/AUGOHN personne} under @ACI cover
3. Sirce this operatfon Nould be funded by WHD heedp
quarters, throrgh thc HHD mb chantsn DTHLZEAS, end sinco control
Wll b exc rcisod by DTHARZAS through its Staff Agont ropresen-
tative in Gle, liisslon Santlago will be reliovcd of &ll but; E
monitoring_&i roport responsibility. Thls I9 In accorriance
vith the ID plan of ronoving direct control of , and attribution
for, KGOwfi oerations fron the officlal statlon.
3, Risks_Involrd
Risks *rolvcd in establishing tho KUGCW chatols
onvisaged in thdg project should be nindzal. Tho , indLgenous
indivicuuls concered hevo been recruitod OIl an1 Wnltt_
basis end vill be handled by Hartin J. CCKTZTAS directly. Tho
FUIERIAC &rop, 95 en eristing legal entity bas natural
cover 'and Ce} acccpt direct attribution for its KUGOm acti-
vities. Fo Station personncl wIll bo Involved &n tho possibi-
lity &f-QICIS intorest discloced vill ba fwrthor mint-
mized by seciely funding tho goup and bxckstopping both
Fartin J CCIZZiTAS and the Eroup' 9 activitles by DTHABES.
FUERRIAC +jl be unwitting of the original sourco af hls
funds and &" @ICKE intorest.
SESRET
'niarmaiisr
#cf
T4^
irg
ins
ing
ing
eox
boing
~W
==================================================
Page 59
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QoooQ
SECPET
Sccu:ity !"'ur!86r .
10
IV. DE PECUlE DATIO
That the (unds cutently approved for thls projoct urider
tho MW Cjxratioal Plan for FY i954 in tho &ct of' #O,O0
be autzorized for thc Laplehentation of tle proposal outlLncd in
tig g-andront. This support 18 not to exccod #,000 during tbo
rernincer of FY 1954. Fwxa Ised In furticr_ the rcvlced plans
fcr thf8 project Hill te providcd poricdically to the DIHAEEAS
fund mchanls After recefpt of statononts fror FUEERIAL a9
to the proposod uce of the moniag.
SEBRET
Sacwity {n!vianttior
Ing
ing
==================================================
Page 60
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14-000QQ
SEGRET
Sscu ; {n', 'Wion
12 T
SENTICIN_QUTLDE
4rga %_Operation
1, ceocraphicereg
0) Chtle
2. Srecifictercet_grgupe
0) Business ard intellectual ctrcleo
b) Horking class reader eudienca
B. Ozeratonal _Contrcl
1, Control_exercised_bY_Jeadquartera
m/RGGiL will exercise operational control through
DIHAEEMS which will dIsburse ftrda to the FUMEHRIAL €roup
in accorlance with specific MED Ingtructlong. Control
will be effectad through the &llotzont of ftnis on the
bucis 0f budgeted necd, througr DCAEEAS to the FUNEERIAL
Troup upon cviderco of 8atisfactory perforrance 01' the
nioslons a3siged to this orgacizetion.
2, Control_exerci sed_by_tne_Eele
Chief of Mission, Santicgo_
)
will exercige Indircct
control throgh Staff Agert Yertin J, COKEAIIAS. By teans
of Indepencent checking and reporting procedures, Maaicn
Eentiago Nill iocp beadquarters Infcried of tha FUNERRTAL
grop S activities. Should tke group fall to
gatigfactary orrance, Higsics Santiago advlse
heedquertcrs witbdraw finacciel an tecnnical asgis-
tanco.
C: Dretion 0f_the_Project
It 19 anticipated that this project , if approved for
FI 1952, will be coztinted in tnc frtura by Leen3 of a
re-allotnnt Qf' fends obtained throuzh tho yeerly Operational
Protro-s.
D. Poggtbflity_of_Overlezeing_Jurisdictio
It i9 antlcipated that FUZZIAL Eey overtually b
to cnannol support to otho: grcupe 'r Gile , elther existing
SSSP5T
23T777 !foarhd
wolroide
perfs
to
used
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4-Qoooo
13 ~ 1'
Cr cor tc pletcc, Khic: [rips Fy ai[ Xitrln Kc provliico Oi"
othcr' IFW/IUCOMI pro cct? i Ghile.
E, Perzonc)Iequrce
'At _
1. FUZZIAL ad FUEIAL-l , both urwitiing Cnileun officiala
of trc NUEBRZAL ortecizction, aro ircdiatel; availablo
8g Frincipal Acont &rd Bub-apont, rcapectively.
2. Yartin J, COREITAS, 2 #D Staff Acent , Hll tho field
Cce Cfficer fcr &Aie Frojecta
F, Corrinication_Elan
1. Tle present direct corzespondencc betwoen DCLABEAS ard
FUEARIAL will te supplerented bv correspondence botijeen
DTTAEEAS ond ]artin J. COREIiTAS.
2. Eicting fccilities #ill sufice for corriunicationa between
Ieacquarters and Fissicn Santiego nra botween :igslon and
Kartin J. COREIIAS.
C Sunport_EZan
1. Euczgzt_to_bofurnished _ tr jcadquartgrg
Support fanis ed by hoacarters wtll consist
prianrily 0f' opcrational, propagardla, anc tcchnical advlco,
a3 vell a9 the provisicn of furd c.
2. Suport_to_ be_furigkcd iri the_F42le
"iscion Sntiago w.ll observe ccveztly tle activitieg
of FUETPIAL" 3 {ju; to 035083 tne effcctiveness of' such of
thetr activiticg aS are rclatcd to thic project.
3. Enirg
2, At thc pregent tirc thc srecific financlel roquirc -
certs of; tle FUERRIA corittec curot be given, nor can
anj firir schedule of disburgerents t0 ti1 Cornittec bo get
fort% in this A-mndrcnt since these requirerients w1Zl be
net on 2 day-to tav end sonth-to-zonth bagis depend On
thle necs of tnle carnlttec_
b. Disbrsone-ts fror funds guthorized under this
auerr*cnt will b cortrolled 48 follo;s. Pcriolically, cvcry
few Ecnths, tho FUEKIi coirlttez will subuit 3 budget to
DTLAERAS for tko fuxs 1t rcquires fcr tie succoeding quartor.
~'#ian
I2
ing
==================================================
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QQQ-
XGLT
Info:n',xtifn
Iror upnrov:l of KMc bir: _ ty moac junrtors, txc furie
#ill bo nlaccd *0 14: 2cJC+ of Steff 4 crt Iatin J
COK;IAS , 1o #uk rcintable fc: tboir &imccent in
accoitacr witi Cori: enlial Hlrcis rcclatiozs: CO;jZiS
F12 ishtrcc sc:: f? ir sllcc; aEcela Fooa*blc,
coi sistrt witl: raintalni C tho op'reti:r cfficiency of the
pro cct, ;ic shell nct, norcoic , Zko mciticnal disburso -
ronto Itfl :0 hia? rccefvca tcrginlc evjconce of Cxpendituro
(rccefpts) for prcviouc dichirsc-cnts orcinar; Gigburce _
arts shculd m10t axcocd 41,01.00 and choulc bc cove:rd by
IcccIpts within tlrt; Cayz_ Hnerc tho Stnff Aocnit 18
ccrtain trat rcccipt? cannot bo obtaincd for lerre Cicburse-
~erts and #hcre tkc 07nituros: ctnnot bo euthcrticated Mith
ccrtainty by tkc Stalf Acnt, 0 ajonirent to the project
sloula bc Fropared and a proposed acrinistrative plan ghould
bo fO1-arded to ilcacqlartcrs ror spproval. Staf: Accnt
Fcrtin J, COKEZAS sholl take all reagonable precautiong to
Insuro that he rintaing corplcto control of thc financial
phcge & Of this opcration at all tirg @nd that ell disburse_
ronta achelc to tle Ccnfidontial Dids Rcgulction8 ad the
objectives atticrizcd In thie projcct an' 1ts 8enduentg.
M, Rexarts_Eroccdureg
In Crenting financial aid to FUIERIAL'< Z0uP, DTHABEAS
Vill rorost pcricdic reporte of activitics and e--perditures.
@esc roportc #ill Le covcrtly clicckcd by Iijgion Sentiago.
I: Cccmination
No coordination Uill be required beyond ND.
J, Ccrer
As 8 corplctely cvcrt and legitinate lccal or€anizatlon,
wite an avowcd anti-CGGYPSY progratl, t0 FUIEBRIAL group has
pet:zl cover. HD mupport KLll bc cocrcd by chanreling fLnc8
thrczigh thc sccure DTAEEAS mcchanisn: Iettin JS CQKHIIIAS i8 8
Staff Acont under unofficial cover in addltion to wnic his
relaticnship with thc FUEERIAL group Irll 1 cerricd out in
his cajacity 28 the lccal rcpregcntative of DTIUAZZAS.
K. Eecuritv
All irdiceroug Personnel involved in this project are
wnkitting cf ODYCKE irtoregta Fu-ding, control, an Guidance
02" tk2 FUERZIAL grolp will bo Henled in suci: 2 vej trat OYOKE
irterest Will not kc cLsclosed to indigerou: or uneutiorized
Srrons, 4ttribution for tre group'8 activities car end Wtll
ix accented by the {oup: 'The oricinel solrce cf fwce bill not
b known by the group.
TWT
cc
36
tc
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14-00ooo
4` <
Secret
sfcumit TaFormiticr
"Rjjict CR,ft;n
ZTCICSG C (44273
PRozct FInANCIAL DATA Fisca_ ~[R'c 7777
Hat Not Exceed SegRet_cLASSiFicaTioa Deic '95 3_THRu 30 JvvE 195
Rlspunsible Staff CR DiVsion (^5e Ccf)-{?
WELI_ Jctii Isstirez
PeRSOAMEL Reu | R*h*j75
Inficito numvo Jno (Jfs Pof so708 Mufna Jnj 0 } {0at6d t0{,| 0007o8n '0 '4r 94M0y [0a4nf {00| 10j
0 80d 'piojee or08 it Inc iuje 08 2an$ P4ij (rOm Ptoj'ct
ruyseR Estiyated ccmpensATio
TyPE
V . $. Persuyaf ( fereigy #atityil 34SE 90i?1 Ill Otmer oTAL
STaff EmPLOYeEs
STafF AgenTS 3 200 travel Qi9 200
Cireer Agents
COnTRACT AgEnTS
coftrjcT corsuLTANTS
detailed PersonnEL
"field AGERTS 3,O02 502 31500_
Military
ALL otheR MSolary_paic CauxStution_I/Q_ALotrrt
Tota/ ROM 87X ZM)
8 SupPLies, HateriEL Nd E(ipheat
Iajicate amgun rcqu roJ in JPpiics81$ spsces, W tacn coivp |0 t 0 $Jpfo? j~; T;: for each.
CoryO CmEmICAL QuarteRmasteR Supplies Other SufFlies
8 2*0
Medical Oromavce SPECIAL Deviczs otheR [~uipnent
TOTAL 8 . 3200
c. OtheR OperATIOMAL EXPEASES
Ind cate voiunc and nature 0 f 9*pense3 suct J} (1) 0J io;jince 0 $ 800 cpcr} iona ous?$ Brojd 671 JPot Furchjsq
0 $ Inforaj tc
Officc, rcntal &71 utilitiog 81,200
Fublication oquipzont &nd gupolicg (locelly Qurc:ased) 2,800
Iocal reiaburseront for repair, printing, and sisiler sarvices S0O
TOTaL C 44100
0 subsidy OR PrcCpriETARY Pitherts
{unds 400 to C 0 turaed over t0 individual$ 0r 9roups T Targ0 i4cr SL?; {0 D 0 oponzad Py tne individual; or
9roup] the Jisaretion #ccomp is^ J0 9rpe]-upon 0) ject ve e*pt,i tdt tYec Jf finjnci9| jccqunts, fsctua}
ification or 5 € 3 ten0nt$, Jny, otne ? {hin rec0 +Pt f01 the sun= aich "iW'8 06{ained
Ione anticipatcd
TOTAl D .
Total fuxu ReQuiREXEATS (^ + @ + c + 01 '3c2
FoR 40
Jun 195z 59-25 SecrET
774
13
i0n ,
3o?
==================================================
Page 64
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14- QoooQ
SecREt
secur'Ty imfcsmatica
€ Fumding Recuireeat]
Tux imate Dates AMS Ayltts Gf MnEy Rea ifE?
Dcozbcr 1953 ds rc.i 1C5 & &aci: 'accoedinc ronti throuc! Jurio
Januzry. 1952 2,000 1954 $,003 cacl.
23ZL13 1,500
Fcrm Re QuY RED
U. 5. DoilarS foreign (srecify) negotiable instRuREHTS (Specify)
special security Requireme#ts Or MeThods Qf TranSMission
Norc Imom
SPECLAL_REQULREMENTS
tRin scufity Iolestlons, Tt 41 ohot Fact) or c Ircusstsnco1 #Ich 0 0040i0 Spacia Suppoct Stanf {0 and
oqujto 1st ca Suppor k {0 thf Project. Indicate 'Pecificat i004|6y th' "Rusm" dr 'Tine? fctors Involvodl
Epoditious approval L9 requestcd so thet Tones can be e penced es soon 8s tho
FUTEBRTAL ' group sutaits to DIIABEAS it8 corcrete cost estinates for setting u
offices and equipront.
SECRET
1og
==================================================
Page 65
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14-QQQQQ
r>{ , 4/
FURoselc
'1
Erb~:ox
Jc:g42.4 Pl9}
WH
achuula
I9 Fct'<4
2
6f
09
76
71 _
tli 6 (
==================================================
Page 66
==================================================
14-00ooo
#u,d
SEPi
4RNOIUAYDN Rr} CB, #PZCIAL SUCMUFX DIVITO#
QBoldh PIlgic/e3
E@jrc? Requeet for Badsea-DavId A:Jeo| FILLIPS
1, I8 I8 Tequented- tbat 2 }lalted ead52 1o Iegued to
#. Dovje A, FbLLlIg? , Lotett Sbed} for PPIc7 , buralng J0 Ie
DEV0aR[YP_ {Ed Locturt} {leli' Iz Latleod bedze abould Ipoludo
Oe088 to tbe Actlt. Bulitng, 2210 "% Slreo%, I, J, %, 044
L Buuldles8.
2. @, Mlluip poio to wve acen?t 1 tbaea tuildluss
IaCelec 0 mg frequeut coriact With warcub ofriesalc 1
bat er eup hla far blg futore sc0lgike It 19 0nticlpated
t3t be JLl2 b 3888pne1 13 eblo Azqucm {cr Ou3 3eer ,
30 #ar Atter Icfori {an , coneect !, F . Eodley P?l
Eecur?ty dFfIees, 1763 Mwa > #lldings artemfcu 815,
(Dignad) COL 4 Bcbad
Por
Jou %' 34k13}
ictImg Chlef YxX Paychologlcel @u Fartnilitav] OraratIoca S;efr
Pe/Ant uetlcytd31 , 2 Auguat 1934
DetrIbutlon:
Acdrdogee OrtB. 8 1
FI/snc /spa 1
PPladnin 2
~Qfi
exhx/As 1
87 ;
weLL
HR}
IpERS FRIHA
CHARGED
==================================================
Page 67
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14- QoooQ
SecreT
docukemt Transfer ahd CROSs RefeRencE
Si0,-7 M; UCevinf DcC'WVfrt TDENTificatiow
R| ilc Ko
[Joba6{ox359 | EGnxk
D $ Sp ^tcm 0R soumce Doc StmBol No M4T{ 4; PROJECT
FURIOSO C Sou#c( Crtptomt 041( 01 I#f0 (Valuati0y
4lis1 DaTc proc(;S{0 10 . 0i Ss[nirat{d Oat{
C. KcHew 28 Mov- 61
COCUve T 0 i Sposit ON
12. Cr0s} Ref{rred To 141; 'i4{ TrMsterred To X
R | FiLE No.
PeaTLYI "FGRWAILOM
Project portlon has been removed and sent to RI/AR:
For review 0f file_ contact RIAR x-2471 using RI
flle number Indicated above.
X-ref 201-88764 FULMIMA TOR-I
FiLE TH|5 Fofem IN File NO _
7oam 867 4}{ 70{7i00, [i7i0,
SECRET (7 46 ) 91
==================================================
Page 68
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14-0000Q
'[kis4i TES
1~) 0 '75
IJ, (" Aicig:
ics ?6-W976
Daviel 6 Phillipt
Iteportor 3
5, 1975
{seistent Attornjy Geecral
In ch;"? oc Fvoew 0}' I:tormebo kct %r3u8:'4e3
3
Donerte: e& of Juslico
#uzhislte D.c .
jcl Sir;
In "4ec 1rLi #nc rml * ti" prwo.n% of
Imoije ici i;: 6c} 68f:e: Fcms;, I r830 iwemijo
(9} c2; fiiu *W" 8; 3 Iz:::)S&7"e8 iacn W hcve o:
" % 9600
~en #}i: ~ce:: ""tqmin:? 7 cxi t0 refdc}
Lc) s1 Simrio. :. 6 a:); of >e"ipk:.
As? :#car: Mi: my fi): te: ci: 33
i"; :; 96 Wf;c? i:i . ;
# cii.
T
fip
33
==================================================
Page 69
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14-000QQ
25 Augus: 1915
David A. PhIlllps Request
on The TIqes
75-4978
Bay CIty
==================================================
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14-000QQ
'CSi RECORD MATERIAL DUE_QATE
Zhz
X_ TIIS DOCUNIENT IS CIIARGED) TO YOU.
2 RETURN TIIS DOCUMENT TQ RIDIARCIIVES
DISPOSITION SECTION, RM GE-58, ON OR BEFORE
DATE INDICATED.
3. IF YOU FORWARD THIS DOCUMENT TO ANOTHER
INDIVIDUAL PLEASE CALL EXTENSION
D0 not REMOVE This forM
Form 362 1790 Use Previous Editions:
J
17 fekkc To Requester;
1 Please return ths. Lefzsc
6 0-10 reference toaREerA RSGRCU
Immedlately after
Zzoc_
RECORDS CENTER
JOB NO. 61-L2I3 So
SPACE NO _ 324ZL
450740
10_
8 3
F
|
3
p
7
1
FILE NO.
0
DOCUMENT
8
FOLDER NO _
BOX NO _
IS. RETURN TO:
RID/ARD/RCU' G-E-58
INTERNAL UNCLA SSIFIED
FORM 610 ustoianou:: SECRET CONFIdENTIAL USE Only
3-67
Op . 61 uluiil{
1
8
J
==================================================
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14-QQQQQ
"CS' RECORD MATERIAL
DUE QATE
1 THIS DOCUNIENT IS CIIARGED TO IOU
2. RETLRV THIS DOCUMENT TO RID/ARCHIVES
&
DISPOSITION SECTIOV, RM GE-58, ON OR BEFORE
DATE INDICATED.
3__ IF XOu FORWARD TTIS DOCUMENT
TO ANOTHER
INDIVDUAL PLEASE' CALL EXTENSION
DO Mot REMOVE This FoRM
Cam
1362 179a Use Previous Editions:
tux f@i&c Mauec ~W To Requester
14_
Please return this Zffezs G-0 reference to RID/ARDIRCU Zscqe Immediately after use
RECORDS CENTER
JOB NO _ LL-LI3 82
SPACE NO_ 42432E
450248
3
12 w::
7
FILE NO.
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FOLDER NO_
15_ RETURN T: BOX No_
RID/ ARD RCU G-E-58
FORM {JSI T{vods
5-03
610
FOWKCNS SECRET CONFIDENTIAL imtermal
UNcLASSiFiED
Op - 6 | USEOxLy
MGES
Catie
3
==================================================
Page 72
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14-000QQ
QUE DATE "CS" RECORD MATERIAL
LL2s
1 TIIS DOCUMENT IS CHARGED TO YOU.
2 RETURN THIS DOCUMEST TO RIDIARCHIWFS &
DISPOSITION SECTION, RM GE-58, ON OR BEFORE
DATE INDICATED.
3 if You FORWARD THIS DOCUMENT TO ANOTHER
INDIVIDUAL PLEASE CALL EXTENSION
do not REMOVE This FORM
PonM 0z 82 1790 Use Paevious Editioig.
J WH Jekt To Requester:
Please return this Lsi?
reference to RID/ ARD/RCU ZPJEis EA-sok
immediately after u30 .
LTgaac
RECORDS CENTER
8
JOB NO. (el - 12 /3 /&6
SPACE NO _ 32272
450248
I0_ 8
3
FILE NO_ 1
DOCUMENT ]
FOLDER NO_
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15_ RETURN TO:
RID/ ARD/RCU 6-E-58
FOrm 610 US] Pzevious SECRET COMFidENTial Hste Rhey UNCLASSIFIED
EDITIONs 3-62
Op 6 [
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Ooooo
CONFIDENTIAL
NOTICE
THIS FILE HAS BEEN PROCESSED AND RETIRED . DO_NOT
ADD_ANY_DOCUMENTS TO THIS FOLDER . FORWARD CS
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To RID/RPU GE-58 _
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}-
2593 3-13)