CONVERSATION WITH FREAPANE

Created: 3/14/1957

OCR scan of the original document, errors are possible

Witt FREAPIHB

ith tba npprcral of CWB, who aald ha did not plan to dlecuss tha Springf jord oaao with FRBAPIMB whon ho eaw hiaiaouaoed tha eiae wi th frkapanb for an hour today at tba Dupont Hat*.

Re aald that ha doesn't pretend to be fully faad liar with the whole prohleaw From tine to tiae he has bean asked topeolfia nee safe to ESOHOST and haa done ao, without elwaya understanding the full baokground. Is asks that, when aad If ha ls asked to take further action in the natter, he be briefed ia enough detail to enable hia to put Headquarters* riswa aoroea to SSOHOST.

I asked hia whether he belle tbs BSGBOST today belieree that the OS aomrsnant, in one way or another, will bs plowing up the tab* Bs said lt la hia definite laprssslon that gSOHOST does so believe. FSHIPaIB was under the iapreaslonranise to pick up the tab had been aade to SSOHOST "during PBSUCCBSSnj ESGHOST once aald sone thl ng to that ef faot to hia, aid BSOHOST was prohably referring to the authorl-tation, conveyed to hia by keaars. thon and Eaterlino, hpeaking for Stats,oui ok settlenant with the British

then outlined the "plan of action" detoribed In paragraph IT

of the neno ofanroa CTTB to DD/p, aooordlag to whloh neither State nor 3KIaaCS oouldHOST any actual funds, and SKIxbER vould suggest to hia that heood issue overtly innd would say that SKIaVSR vould do what lt oould to sea that the hood issue was aanaaadBj promptly suhsarlbed, but that Ouateaala matt eventually foot tha hill, payiag the Intereat end prlnolpal on the bonds. sked what he thought SSGHOST'a reaction to this plan of action would be. He aald SSOHOST would probably "blow his staok". In view of the state of Guatemalan>llo opinion towards Britain, FRSAfaHB believes redsinf;l national lotteryond laane In Quateaala would be out of the question. He believes raising tha fundsond Issue inithventually footing the bill, ia also not praotloel politics. 0ot of aoney down there, and tba reperouaalons fron an atteapt to raise Utond issue oould even seriously threaten the stability of tho reglne.

FHSAFaJffi then soldi "There nust bo sane way of introduolng the aoneynd oaaa up with the following plan. SKIMMER would tell ESGHOST It oould not giro0 In one lunp, but oould give it to bin in ntonthly inatallaenta, over tha approxiaatelyetaining souths of hia tern. If ba would agree to handle it as direotod by SKIMMER. ESGHCGT would then tell the Britiah "It ia politloally quite iaposslble for ao to deal with ths British olalm overtly. However, out of ray Confidentialan pay you suoh-end-suoh an amount saonthly for ma next four years, if and only if you oan take oare of the London end of the natter, and seo to it that it never beoauea known publloly that Ouatenela haa paid Britain anything." ESGHOST, via Greenlee, oouldlaliar approach te 3iKhan,

z

Easier,ouston, tba admiralty lawyers representing the American claimants*

6* PRBAPtHB pojated out trntay of handling It, in addition to Insuring tba minimum of pdbllolty, would also grsatly inorsaae his control over BSOHOST,

T. tressed to PRSAP&ra tbat our dlsoueaiouaolcground onsto get hit opinion co what ESreaction to ths "plan of action" wouldand ashed aim to ressiure CCS tbat headquarters would not bo talcing any aotion without oonsulting hln, and to tellCJl that wo would probably be sendingiapatoh,

8. la ousted FREAFSHE'a Ideaand *ith DCWS, both

of whom bad ao initial very farorable reaction oo it. DOTO said to write lt up.

C 1

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