PROJECT PBSUCCESS (DELETED) DAILY NOTES RE ARMS SHIPMENT TO GUATEMALA 7 APRIL 1

Created: 6/29/1954

OCR scan of the original document, errors are possible

[cia HISTORICAL REVIEW PROGRAM RELEASEAS sanitized s.

Dally Notes RE

Arms Shipment toli to

AjX^j otU

Lor of

C. Tracy Pnrnes said thatanted Jio monitor theInformationshop and check with Jand Estorline

(WH). Saw F. G.aid to contact Espaand coordinatel.

Memo thisooutlines plnns andC. Jin this deal.

fa

Spentof day working up cables toC Jar.df^ J-

cable toC ross andhandled for

?S. and WE andledwith Oordon Stewart.

c/?i.W**'*

Saturday,Su

Sav Ada. Espe (Chiefontaron as per suggestionith

^ Jreturned ue went over the wholeraftede SSt SeM it Up for furtheri; advised un of Stst-e's reversal of policy re interception.

hip*Puerto Barries and State's -invonrd*-mted withurned over to or IrinamHtal. A"

Information re Insurance and agreed to relay at once

IJ1 f requested

HQ. lo see Mr. Raymond Leddy at State, who ahowed^State cable,tooapitols urging tightened controls on arms traffic. no objection to alertingIt looked OK and diacuasori

later with John BakerP being out of reach) who agreed we weren't making State Departaent pal icy and sporoved alerting CIA stations to this "overt" Information. Leddy also raveC Jfour theses for planting in Central American nresa.

Thursday,

State cable (see yesterday's notes) with Pit brought subject into open and all stations should benot to pinpoint HEXrn firm to Also, C Jbe alerted to investigate the Insurance Community until we haveon thisake lert tho same as the others.

C/PP the four themes fron Leddy.

tatoe okayed plan to alert cur stationscities. ell Leddy to be sure Hr. Holland at Statethe "Insurance Cable" ofpril.

Stale cable to Gordonlso okayed idea of alertlrif

stations.

draft of cable alerting stations to State'sne to nly. Coordinated with Bross

for EF..

en hour at MSASaw ourJ and Cfff]'

Saw Kin Roosevelt (vice Helms) with 0

discuss

. KR thought wo oupht to be sure that CIC or semeutfit wouldn't cross wires with our people and surgested we should see General Erskine in the Department of Defense.

d. ours) Conference (arranged through Genera] Balser) with

Erskine in Pentagon. Present i

Brad Smith and

Horrell. General Ersklno wns sure that General Truscolt (ClA-C

be in close touch w

inally left it that D

outhe Importance of getting as aueh intelligence on this as possible and Col.ould find out for usad instructed the field. We clearly pointed out that only intelligence was needed; any preventive action would have to be deteralned at highest levels and we weren't la/in? this on now.

this He was anxious to find outbe countries involved will do anythingo they have any laws already on their books against this traffic.

discussed other possible ports that might loadand it was agreedhould inquire fron GUIprevious information on ships sailing to Puerto Barriosand other Bloc ports in the Balkan or Black Sea. Would such

a voyage be an unusual one?

Leddy calledattentionepartment offrom Mexico City reporting that twocouriersfor Prague ont. They are going via Dallas andCity where they will be ond. hat sightcarrying?)

discussed the possibilities ofhip divertedscheduled course by orders from its hone office. Mr. Leddythe Comunist-controlled radio operators union slightthe proper receipt ofessage. greed to askabout this. In thisuggested that the Navyfriendly country who would be vitally concerned about amsthe Caribbean area, such as Cuba or the Dominican Republic, mightto holdhip in their area.

E Kr.Hy- agreed that it still looked as though the shloaent could gc from Belgium, Holland or Genaanyxpressed the hope that the cargo had not yet left its original storare urea enroute to tide water.

says that instructions to ships to changeput in at unscheduled ports are very customary. Doesn't thinkOperators would dare to Interfere with any such order, tutnight ask for confirmation of his new orders just to makewould rule out any attempt to use "black" order to promotediversion).

WE Belgian desk (C) but no wordJason Paige.

c Asked John Bross to cable'or an interim report

from C riginal mo3aage calledeply in case they were NOT going to do anything.

d. alked to Coroaander holmes (ONI) at my request re

Leddy's question about other ports. Holmes thinks they have the shipping possibilities well covered and ltdticks to the Northern European Jwilldopy of

reports conversation with Kemit Roosevelt

priorities forlso checked entire traffic and willorriAl me-cranf'um to OCI stating exactly what we wantestating earlier requests).

f. Discussed problem of coverage with Chief,rank P. Rowlett) vh- precised full support. Rowlett urged me: safe to Paige today. OCI has sufipetfted talking to Ambassador Puorlfoy aboutaci'lly in his Embassy inw.-xs to clear withRowlett is against it.

ays he has no views hut leaves itto

dec i'lo.

r. raffic received from Colonel South of General Ersklne's office.

h. Sew Kr. Wisncr reoe Laroque having advised bothStewart ond Hr. Wiener last night that we "shouldn't go any further as to source, because all we'd get would be lies." Kr. Wisner said he would see what he could do or at least, advise us whether to follow up any further.

1. Drafted cable to Jason Paige asking for report and sentKAlE, for release.

.'. askedinformation on howcan contact

Paige.

y. Reviewed VASHTUB file withwith particular

reference topril cable re Somoza's story about bona fide sightings.

1. AskedKer*lt Roosevelt present) for line toAdolral Espe re VASHTVB development-:. Situation not at all clear whether Sonera isace with us, using our plan backwards. "Tell hia the truth." Called for appointment but Adairal Espe gone forours).

Admiral Espo, Chief, ONI, inffice0 hours.

Explained developments re WASIfTUS and confusion here. He was glad

to have the infontatlon and said the Navy wouldlightly different view. However, he remarked that known USSR vessels couldn't getar, and false sightings were often reported even by intelligent* observers. greed we would keep him posted on any developments.

o ask about the above Interview - ,

C/ONIo report re sourcehat it is believed

to bewhose previous reports have

roved to be reliable. f information."

ith help of W.et in touch with Jason Paige for briefing andinsurance angle. Delivered tofor transmission.

f

, Friday

1. Discussed with -3

-inns being transshipped at Cristobol.

CJsays this la Just incidental information for our use If we want it.

2 r*OLFBROOK cargo to Kingston. hould see Win Scott about this for possible use Jar* ?. orwarded Rybat cable in fron r

Expresses doubt he can do much.

3. Talked toit length about varioushipments

to west coast ports are not at all clear as to destination.

pril I'M, Monday

had three new ship names and dateaf

Fron PuertoApril

April

Hay

(On't understand the significance of "from")

ack from vacation In Sexico City. Saw somelocal tea* socially -understands thereow veryand wonders whether anything is bolnr rotten from Czech Should wc alert f o *hat we are lookinr for? C J We learned this most in formally andi" they knew about our interest.

pril cont'd)

3. Reays any ba0W1 sayshance of its being true, unless

poods went.Worth to Antwerp, Amsterdam,or transshipment Industrial Division says Krivic plantire drawing plant and never have indicated any interest in or capabilities for anea manufacturing.

i, Tuesday

had no new traffic. Discussed new ship

nines supplied by orn and agreed that Italian TRITOV out of Genoa

to San Jose onpril and Swedish Jobs! Oorthon out of Ercnon to Puerto Barrios onpril, offered possibilities and nancs right be sent to

asked whether Winchell broadcast Sunday night (which

R. Leddy had heard) was inspired by anyone here as result of Leddy's four theces. (See notespril). Found that nobody knew what C. T. Barnes had done with Leddy's themes and also that broadcast was ainllar only In that Petrov was quoted as the scarce. Talked to Leddy who agreed It wesoincidence and passeo that on tc 3illie for Pffc' who will see CTP aoon.

rsoiieated by Dick Kb Ins yesterday, discussedf nd was assured oy.C s

desk chief that there was absolutely no question

alerted tc our need for any significant traffic on shipments, ships, inas-.tnee,tc.

pr. corfI'd)

L. Discussed cable traffic re SS ^ULFSBROCK with Kin ScoLt. lie agreed it looked very significant and we should get release fron Brussels to discuss with ^representative in Washington.

5. Showedndthe messages regarding

SS ^CIFSEHOCK, includlrg latest info ship clearedfcb take this up with Hay Leddy, Stats, and expressvies that ve could discuss vj.thC.ruMels by disguising source of

u, Wednesday

1. Saw Ray Leddy in his office. He questions the figure of

ilos which he thinks nay be pore. He alfo suspects that the

Captain isparly to the deal. He agrees TC should query Brussels

as to thets as to th* number of cases and confirr.

tonnage figure. ndeavor to get further data on the loading

in Germany, what constitutes the balance of cargo, and any dat^ on

aaV-*,

tne origin of tho shipment-tc XingatoQ. old hinhes

vv

an^ we should get her KTA't for

Kingston and Sclise.

2. Talked withsuptfested that it night be

heln'ul tousucls whether informant could five any indicationhe order of stowage^would indicate the order ir.uld ie unloaded. Hehould try tck the origin cT thoie goods. He also agreed that the control restriction Jinfo could bo clearedw'-lng

p to Ada. Espe for

-.Icrting th- Caribbean Corvand. Heh J. C. King on tSir- point.

3. Consulted K.ho saw no complications in poing to Adn. Espe as Soon as possiblelsoo prepare

ale to Lincoln regardir^ the KZTZBfXX,

I.. Go* ^smgrafl<itttto. in the absence cf Capt. Chapman, to pull together all the data on thej ^tWirnrte her ETA'- at

Stor- and BsllSS,

5. Saw Adh. Espe, Chief, OKI, by appointment In his office. ury much Interested in tho traffic or.rS!*rOGK and called in Comdr. Sullivan who has replaced Comdr. Collins as our co-.tact in hiS office. The Admiral instructed Sullivan tc look into theirIn theor air reconnaissanceo check on the SetVj's available data on theerifina our ITA's. Comdr. Sullivaneep in touch with

-briefed Gordon Stewart on the IMLFSSSCK story

VSac

ne t'affic in his shop.

7. After discussionessrs. Smith and Yates, talkedScott at-eut aue^eHinf tcthat the British

"iyhsiiooer in Vert Gemany, nlent areaiwa the owners of theta instruct it to stop at Kingston ror inspection by Prilish authorities on suspicionals* manifest entry. This idea wasc" timt femit. herepressure was spplied. Scott

ried to reach C. one for the day.

pr. co-.t'f')

Completed Hybat message to Li-.roln uhich K. ffoosevelt signed off on.

U,Thursday

1. Comdr. Sullivan called from OVJ to report that his office did not have any confirming or deifying data regarding the aTILFSHROGK* The ship is brand newthey will haveook further for statistics rerardirg her speed, appearance, etc. he agreed it was best to use our fipure ofnots in calculating fcTA'5. He did aid that thereecordr having stopped at Airjierdaic ond whicfi nay postpone our ETAay or so. He said the Wavy was getting word out to tbe fiftl^ asking then to lay on reconnaissance and theyfissnd will advise ONI of theirtiea,

Called C

reports Coln Sweden. Later Johntopped ir> to say that they hac' been following Julian's activities and !ie sugre-ted thatmight try to get the State DcpArtresit to perousde Sweden and the Cnited Kingdom to deny lleeasas.

3. Lt. Cooidr. Christopher, of Co?idr. Collins off.kedhad any objection to alerting the fcval Attache in Hexico CityWl'LTSPHOOK as he might have his own leads as to the firsteingpoke

, Chief of the Kexican branch, who scid it seeded logical to hin tothe contacto advised Christopher.

pr.

1_. Asked Win Scott to arrange an appointment with aC

Jhr later called to siy that the best could do .was

rr.'ng.

Showed ret' AT" ZLessage fror

the Dutch Vessel liaLDER was loading in Germany although our previous

advice free the Navy had been that she had sailed onhh.

Got Dawson Smith, PH/ftM, to look her up am* was sdvised that Lloyas'

Index oTpril shows she sailed fror, Curacaopril, on route

Ccrlr.to (Pacific coast of Nicaragua) to Antwerp and Axsteriaw. Taking

an esti-ated speed ofnotsuiltG) ittake

s from Curacao to Antwerp, which would nean she arrived ther*

vests re ayew rf-.ys earlier if she made better ft Its. I" any event,

ths Vsvyprovided acpears tc hevet. Worked out

C Jcr.clersubject.

f. Discussed orcnoPOG cablo toregarding IfJLrSPRCf'i'.

Also suggested that British HIGOO might persuade owners turn her

into Kingston. Finally agreedalthough the owners might bacrf

down ifeight tripBlCftJ authority wculd

oemy such gesturehe Cxptnln and possibly

cause diversion at sea. Stewart approveds^

7. 3a-ad leW ill* of OOCVi rsatien with ImHj orc-day.sked that-o:rcee is lrsdi'V touspicion tW. *mw ar* being snipped tolca.isaiionsarticular BhipRSSki isertly

headed forvondurasyt Kingston cn route,

SECftff

pril cont'd)

the British can Jo to examine the contents which has probably teen falsely manifested, wouldlow for liberty.

9. Cleared cablo to C regarding

ormatioi on cargo of WULFSFnnr*.

U (Friday)

Met with Win Scott andadvise the latter as per DD/P's instructions yesterday. as interested, thought they could be helpful, and said he wouldessage off to his people today.

ObtainedPP/AK the porta of call of the SS BELDEB on her last three trips to the Caribbean. See memo in file.

copy of dispatch from CKOQNCLAHTFLT, Info: CINCAPJb, CWCARlBSfcAFKOJJ,lusna

Kexlco. (KULFStROOK atory and ETA'a)ttght^saibaeA'

consignment nay be arms, Navy has been roquesLed to provide surveillance and determine ports of call. Comply as

u.honed to ask me to check with the DCI and findhe wants to be britfed on the WbUSffiCOK, withon conversations and R. Leddy and I

agreed to do this and found the onlyould make with the Direetcr would be noon tcewrrow.

As requested byct with DCI at his office at neonhim the details of our present knowledge of the SSDirector expressed preat concern that this shipment nightthan reported and wanted all means explored to stop it. was waiting with Win Scott for an

appointment and the four of us reviewed the British capabilities The Director toldin some detail of our

sources of information regarding thia shipment and authorited hin to express to his superiors the Director's personal concern in this matter.

*

reportedew vessel, the SSerman merchant ship5 proas tons^ had sailed fron Ghent onpril for Puerto Barrios. This information cane from MHO London.

Withbriefedthe importance of the XZ upporting our efforts to follow

up all traces regarding arms in their area.

with Bill Wheeler (DC/Staffnd Win Scottof the Director's discussion withonwhether or not the material was actually available to theLondon.

Commander Sullivan (Ota) telephoned to say that the latest report Is that the SS tfJLFSBRCOK left Amsterdampril, which postpones our original ETAouple of days. He didn't expect that we would hear anything until Thursday.

ew Lloyd's Loading Index

VtJL.

datedpril had arrived, aml-Jiad worked out scheduled sailingsumber of ships reported clearing for or fron Puerto Barrios.

3- alled me Into the end of tend* PBSOCCESS meeting and asked me to take up with the Department of State an urgent request to the German Govermont to order the SS WULFSBROOKnited States port for inspection. as also to inform the Navy of this step in order that they may be ready to assist in escorting the ship, if necessary. (This point not clear and to be taken up with Kermlt Roosevelt later)-

Ii. Saw Mr. Henry Holland, Assistant Secretary for Intor-American Affairs at the Department of State, with Ray Leddy and Dick Perry to discuss the message to the German Government. Mr. Holland approved the idea and agreed to touch base with Acting Secretary of State Murphy. Drafted cable with Leddy along the lines of memorandum prepared at DD/l's meeting. Noted later that last sentence regarding United States iV>vmment's acceptance ot liability for aamaesa hss omitted Modes Leddy said he had done deliberately because of leeal complications.

i

Raymond Leddy telephoned to sayolonelan waa coding to the Departaent of State to discuss theand sugpcstedlphi like to be present. Thein the office of Mr. John Fisher, head of the State deskand El Salvador. The other personnel from StateMessrs. George Spencer, Jameson, and Taft, the latter beingthe Munitions Control at State. The discussion lasted an hourquite inconclusive. It turned out that Colonel Junkeman Isof the Latin American Desk at the Department of Defense and

is responsible for keeping Defense informed on Guatemalan matters. He wanted to find out whether the US policy of arms enbarco was forcing the Guatemalans to turn to Bloc countries for arms. Hr. Leddy expressed the opinion that the whole meetingaste of time anrl that Junkerman was just trying to get educated at our expense.

Government intervention In tho case

talked to Kermit Roosevelt to clarify Mr. Wisncr'ayesterdaynTorn the Navy of State's request for the German

shouldI to find out wnat the Navy thought they could do in the

Off|>

way of active intervention, although it might not be their direct responsibility to carry out such operations.

3. Confirmed tohat cable had been sent and arrced to report

conversation with OTI.

b. James C. King discussed cable from Lincolnhich ne thouehtot o* wild Ideas. Confirmed ETA ofat Puerto Farrios might beMay. C

1. Received cableS6 frooi Brussels describing loading ofat Antwerp. Discussed thisI who agreed thatask for details of the Itinerary. Accordingly, sent cable OUTBrussels throughkC/vf..

?. Showed sane cable tond at his request took it overleddy at the Department of State for his information. DD/Palerted but still with the emphasis on

Belite rather than the other ports of call. Further wanted to beWH alertedSan Juan to make sure that he started

discussionsreliminary and confidential basis with thethere. "If the ship does dock, we may have high levelaction against

3. Commander Sullivan of 0H1 reported that their people had looked

into capabilities and unless -very much higher authority" (ie the President) action

directs/nothing can bo done by either the United States Navy or the Coast

Guard under present laws outside of the 'Jnited States territorial waters.

We can only watch it. ave him the ETAay atltre,

Guadeloupe, received in cable from Brussels.

U. Checked Lloyflh Shipping Index ofpril for the latest news

on "our list of ships."

c. Dick Bissell called and asked me to Join hin and Larry

his office as thoy had not seennd were very much interested In

the details. Mr. Bissell wanted to review the entire situation as to what liabilities

rtxkttittaex we are assuming and what legal action wetake aftergoesnited States port, and if ll doesn't. Larry HoustonHew Tork who will stop here tomorrow morning and lay the

ground work for legal actionshlil u',roURl1 the American Firearms

Company inTork City. The plan is to have the company nake a

claim IN REM for goods they claim as their property on board the

WUI.FS BROOK. Kr. Bissell also inquired as to what we knew about Reeder-

. Isecent firm? Could C- bout

ita standing? It was decided not to approach C ** Jyet, at leaat

not until the full results of the State cable were heard.

fi. John Brossew cable in giving details of WULSSBROOK charter from Reeder-Un*onutch firm and indicating ETA Sanay.

7. At the urgent request of DD/P, drafted cable to

Jwith J. C. King andwas given to

Cable Center0 hours in hand written form to be sent PRIORITY.

that if the ship unloaded any cargoJuan, United States Customs authorities would have the right to check

the manifest if there were suspicion of (a) false or no manifest, (b) therofort contraband on board, and (c) possibility of smuggling. The role of Puerto Hlcan Nationalists in recent violence in Washington would be overt reason for taking precautions in San Juan.

cables via Hermit Roosevelt's officeepublic attitude toward ordering Haster into port. Cable showed

charter to Dutch firn and indicated outline of the problem passed

3. Checked with Ray Leddy our idea of alerting United States Custons In San Juan who said there would be "nothing but cheers here."

b. with Larry Houston, Gensral Counsel, called on Chester A. Bmerich, Deputy Commissioner for Investigation at the Treasury Department. Emerlch was concerned about liability for damages and demurrage, but wanted tote halpful. Took us to see his boss, D. B. Strublnger, Acting Commissioner of Customs. Since the ship ia diacharglng cargo at San Juan, Strubinger thoughtecurity search wouldetter answer than false manifest of goodso ports outside United States territorial waters. Question of what to da if we found anything and C* rf

J

S. Checked customs inspection plan with (a) Ray Leddy who saidHolland was very *uch interested ani thought it was an ideal ho advised that the Director had stated in his morning meetingour information i* wrong about contraband, we will pick up the tab forincurred. X tC J

Returned to tfr. Emerich with Larry Houston. Captain Korean, head

of theuard Security was present and agreed that he would Rake his

people at the San Juanuard station available to the Collector of

Customs for any help that might be needed (Capt. Hoggan advised that the

SERCOK lb rated? knots. This Is the first real estimate of

her speed we have had.) Hr. Ernerichessage to be sent in

Strubingor's name to the Collector cf Customs at San Juan via Coast Guard

communications code. (Copy In file)

7. Connander Sullivan of OVI reported that word had been received

late yesterday that the *avy had -covered windward passage all day and

itre

pot negative." This was beforeindicated to them

ort of call. Sullivan remarked that the Wavy had "come stuff near Pa! T?

that could now be pulled Into the picture o- the basis of our later

informat'on.

^. Received cablei5ftf fror. C egard!np transfers of funds by Guatemala in Switzerland, Question ofillion Swiss francs in first paragraphillion in third paragraph.

Briefed Jake Ssterline on progress who called our Attention to cable fromC IX

With J. C. King, prepared RYBAT cablef Commissioner of Customs' action.

ecided toable tcc operatione tmbassy in fettinr Dutch authorities to direct ship to call at Curacao or San Juan.

h

In. prepared cable JdIKigned off. and message went priority immediate action.

Checked with Connander Sullivan at his home who said that up. they had had no news on the WUXFSBROOK.

c. Message Center called to advise receipt of cableromETA Stopped at Message Center. to read foregoing cable.

ay

tl. Commander Sullivan called about. to reportn ttfsBCay.

?. Ray leddy called. to suggest that someone from here, posslbily XT ^should go to San Juan immediately to supervise the investigatien of cargo. iscussed this withho agreed with my view that itrofessional job and would not be aided by another amateur In the picture. We both felt the importance of the case could be emphasizedan Juan, by telephone.

SECRET

ay

Leddy called and said that he would sand ae thecables between The Hague and the Departaent of Statef>,

ay, anday). The Foreign Office is apparently nove in view of the paucity of information and Is not taking any

action at presont. Leddy asked where the ship was and would we please keep him posted.

copy of DD/P's memorandway to DickPlanning Staff at the Department of State, regardingexpenses which might be incurred by the West German Government

In case of diversion of the WuTJSPROOK.

Sullivan of OTf. called. He said that on Sundayhad achieved tentative "jjjf Efjc atitre andhadn today. The American Consul atitre hadto cooperate and we might get two approaches: (a) fromand (h) from the Consul. In view of (b) who wouldthe Department ofgreed to toll Leddy to alertDesk. Leddy didn't think that weonsul atwould look Into it.

It. Hay Leddy called to ask whether we saw any objections to the Department of State's alerting the American Consul in Martinique who covers luadalouoe. He wouldoutine consular request for the location o*LFSPHOOK fnr the French authorities. aid that we saw no objection to this action.

larry Houston called to say that fmerich at the Treasury lad

all from San Juan and the Customs people are all set to

ro. Ho alio told ne that thd?ftcVwas rcvlslru' his, loiter to Treasury

about Indemnity. ftalled from DTi/P'S Office to sav that DD/i

wanted re to look at tbe letter and to call him,id. At hisook the letter to H. Chapman Rose, Assistant Secretary of Treasury, after discussion with the DCI-

As suggested by1 gaverief summary of theof the WVLFSBROOK case and mentioned possibility of getting FBI cooperation which he said he would look into.

J. C. King called to say that Hay Leddy still thinkshould go to San Juan. P still agreed that this would be of no help and said that he would talk to Assistant Secretary Holland.

3. Prepared cables to (a) ^regarding approachingtbe SSlfELDER as suggested in C essage from

3 May infiles (b) Jregarding the discrepancy between

illion Swiss Francs reported pair in

Showedatest cable from C-

there today and reception prepared.

10. n. Comander Sullivan called ma at hone Lo say that the

tassSir- was expected to arrive today,old him we already knew.. he called to say that she was in port.

-c

J

c j

.

L 2

1%

m-.

'c aft "a? .

Tuesday,

Leddy called me. old him that the ship waa in San Juanbe inspected. He reported NT ACT cable fromthe

Dutch reactions to our request which Indicated that they objected strenuously. Heittle later to discuss Hr. Holland's desire for controlled publicity until we (enow whether anything is on board and then Slam Bang exploitation.

discussed various problems with Frank G. Wisner on the telephone!

thought wo should hold up contact with *C

til we had more firm intelligence and should not stop the Boliie angle (later decided to advise hat the ship was in San Juan and wo would keep him posted on any developments, but we still remained concerned about the broad problemontinuing baais. alled^. . to this effect.)

asked ne to notify the Director and Dick Bissellship was in San Juan.

sho'.ild advise o stand down on pressuringand the Dutch. Decided to discuss this at theemorandum was prepared for RAy Leddy at the mectinr whichto him. Copy in file.

that J. C. Kinghould talk withSan Juan by telephone this norning.

Holland at the Department of State agrees that theresense in sending anyone to San Juan unless and until sometning

3> Commander Sullivan called fron ONI io sug est that we look at two dispatchesegarding the VHTlJ^BBOOKj also. State message from*

l|. As per request of. King put through telephone callat Puerto hico, but as he couldn't wait in hisid

the talking. ent over the suspected shipments with '

ilos merchandise dlverses loaded Germany, consigned Kingston;ons cases loaded Antwerj^for Puerto Barrios, contents unknown; andons cases loaded Antwerp forATruJi]lo, contents unknown. lso told him that no publicity leaks should be permitted for the present, and pointed out that tho ostensible cause for United States search was concern that rumouredmight be smuggled ashore to Puerto Ricen Nationalists. lso advised bin that if nothing is found, we will havo to apologise and pay the costs, but since the DCI has agreed to pick up the tab, he should foel authorised to conduct asearch as he thought necessary. Finally advised that if anything is found, we will want to work up the maximum publicity play.

1 asked him to also look for any evidence that some of the cargo might have been off-loaded at sea or at Guadaloupe by checking the log and questioning the crew and ckipper.

me the following report. He said that the ship

was at dockslde under guard and wasnloading the COO tonsconsigned to San Juan. He said lhat he had found twoons (may be the Antwerp to Puerto Barriosndons (maymarchandioe dlverses) on the manifest,look at everything on

toardf. He described the operation as going forward under complete control and in perfect shape. He said that he would cable rwther than telephone if anything

cones up at an awkward tine of night. He said the master was behavingittle hurt and slightly belligerent,irm hand was being applied. He reported that the most belligerentutch super-cargo who was the only non-German on board and whose presence may be of particular interest. He also mentioned that an elderly man and his wife had signed on as steward and stewardess, and seemed to be'part owners of the vessel.

?. AttendedBSUCCESS meeting and reported the foregoingCarried memorandum to Leddy and notified C Jas

instructed.

6. . J. C. Kingecond conversation with C

as

.JEverything Is going smoothly. They0 tons to unloadlots are at the bottom,it may take two or three days. elephone at any time of the day or night if anything

develops. He said that this information had been passed to DD/P.

Wednesday,ft

J. C. King reported that he hadelephone conversation withlast evening, and there had been no discoveries. He jiaid that the Customs people willirect order if they are to go through the Belise cargo and tho estimated tine to do all three ports is six days.

Discussedwhat our next step to revise our list of ship targets should bo. J. C. King called Brterlchhe suggestion of Larry Houston to discuss the examination in San Juan. J. C. King called to report that he had talked to Emerich, and while they had been spotew cases destinedarticular port, both King and Emerlch were not satisfied, and had given instructstns to completely inspect the cargoes for Kingston and Puerto Barrios. He remarked that demurrage charpeo woulday, to which should be added dockage and unloading, as well as crating charges. greed to call Bnerich in the naming to find cut what he wanted.

3- Commander Sullivan telephoned tc say that the Navyeratlve search as of noon today; she would te turned loose this afternoon.

u- jf AMD reported that the SSCfiSTOR hasn't been to

Cristobal during March and April.

5. In our final rcund-up for the day, he asked nethe London firms reportedly offering arms to thetraffic.

Thursday,ay IOCI1

Went to NSA withQ

talk to Commander Holer.es of OWI.

2. Discussed with Leddy State's cableram Managua.

3. Attended DD/P'3 PEStiCCFSS meeting at noon, where it was indicated that the Director wanted someone to go to San Ouan. o DD/F, who said that it was up to roe who went.

o see Mr. Qnarlch to find out what he

in the wayetter to continue the examination.

5. Resjardlnir trip to San Juan, talked to Dick Eissell and Kr. Wianer. Hissell said that heught to go bocause of my knowledge ond background. Wiener reported the Director as saying that he didn't care whe wentominated them. Finally decided that full knowledge of the case was most important and arranged for tr..vcl orders, moneys,n order to leave5 hours.

Konoay,ay lySli

1. Jake Esterline called to say that he had received word that the Or' inspection jo' e-ipletedz-c-druns on deck which they were going to probe. The ahip will be released sometime today to the captain and reloading of cargo can commence. He also said that the Immigration officers have picked up the nosey German, Arthur Pieberger, for questioning.

?. alled to ask ae to check just what Admiral Espe has done and has instructed the Naval Attache in Guatemala to doesult of the DCI's talk with the Admiral yesterday. How can we get hard infomati to Holland regarding the SS ALFHEH? alled the ONI and talked to Commander Christopher who said that late yestereay afternooniairal tape personally came to the Pentagon and sentessage instructing the Naval Attache to go from Tegucigalpa to Puerto carries

to ascertain the status of the cargo, and make recommendations for

mction to prevent it from reaching agSmsteaSgflsj ion. Christopher asked

whether he or we should notify the" Ambassador of these instructions

coming from tha Havy to his Kaval Attache,aid that he could

assume that the Ambassador wculd be aware of the Attache's movements.

Advisedf the foregoing at his PPSUCCESS meeting at

noon. He said for ne to keep in touch with ONT.

3. alled Hr. Emerlch at Treasury to reportisit to San

Juan on Friday and Saturday. old himoodhought

Murphy and Torrens were doing, and gaverief description of the

operation, he said he was going to talk to Murphy at loOO hours this

afternoon and would call me back. At lcyXJ hours he called to say that

th* in'*"ition had been completed and the cargo had been released to the

captain -or reloading.

At Mr. Ruerich'uassed this Information on to Larry Houston who indicated that he was in accord with my ideaetter of commendation should be sent to Mr. Ralph Kelly, Commissioner of Customs, praising tho cooperation of Messrs. Boerich, Marphy and Torrens. Mr. Houston said that he wanted to think about how it could he securely worded.

b. Regarding the SSI asked Kr.AMD to put

together all the information they had regarding her and her last voyage.

Commander Sullivan called to say that according to their information, the ALFKEM was under charter to the Czechs and took steel from Stettin to China and brought back iron ore. h* said they were going to the Naval Attache in Sweden for more information.

Ray Leddy called to say that the charterer was E. E.o. of London (see later information this subject ISe said the vessel had previously made three or four voyages to China under charter to the Creche-Fract for China run. He understood that Stockholm had reported,esult of Holland's telephone call to the Ambassador yesterday, that when the ship left StettJn, she hadutch >Jest Indies destination. (Can this be verified?)

Leddy also asked whether it was standard practice toharterer to carry arxs. Also, would the insurerer carrier of the hull be interested in the fact that it was carrying arms* (Xsffar did find the answers to these questions.)

whether wc had had any word of

nesting at which there were discussions of ways and means of getting at the SS ALPiitK. He said that an unspecified United States Agency had been nentioned as prepared to indemnify anybody who is out-of-pocket because of actions requested by the United States GovemEent. aid for his information only that it was our Agency who had undertaken to pick up this check. hought it would strengthen his hand if he could siy to his people that CIA was in accord but not to expect anything more aidaw no harm in his passing this word along if he thought it would help.

<- P asked me to brief Larry Houston on the latest developments on the AIPnEX CiiSC.

7. Hr. tiisnert home at. to say that:;ore trouble and he was going down toffice at State. him. discussed the

problems of the second and third vessels reportedly coning into the area. (See Guatemalajo Lined* at Ste-sej

I talked to Connander Velron, the night watchKI, and explained that we would want to get all possible action, or. these vessels as socn ss possible- He said that it would be best to go to London as th* best source of shipping intelligence is Lloyd's. As he out it, CIKMELKt information fromi faster than it iaf bearing down on the jot of ascertainingdentification of- vessels, plus some estimates of cur reconnaissance capabilities in the area- (Tha party broke up

1. With^up information on Thorden Lines

ships (see separate memorandum)

?. Went to ONI, Coonander Sullivan's office, andengthy discussion of Thorden ships and possibilities of their actually being the second and third ships reported as coming to Puerto barrios with arms.

He gave me the Army Attache's report from Guatemala City confirming other reports regarding numbers two and three.

Sullivan agreed to check all available information regarding the ships' last charterers.

Sullivan suggested sending the Naval Attache at Warsaw down to Stettin to get what information ho cculd, and he also laid that he could aal: the Naval Attache in Stockholm for complete data cn charterers and tho present whereabouts of Thorden Lines ships.

Sullivan said that he would alert the merchant ship movenent group in Navy to report anything going to Latin America from Northern Europe and the Mediterranean area. We realired this wouldery long list but at least we wanted toook at all the available information.

Regarding capabilities for surveillance, Sullivan said that they would have to have the identification characteristics of 3pecific ships before air observation would be practical. On the ether hand, if sufficient patrol veasels were available, they could observe all ships heading for Puerto "larrics, but their field of actlcn would' be closer to that port than air reconnaissance. Ho agreed to check Dp and find out what is in the area In the way of ahlps and plan's.

Sullivan said that he did not know "hat- Admiral Espe had done about the Director's request of Sunday afternoonavy vessel be sent into Puerto Parrios but apreed to check on that.

He agreed that it would be advisable for Mr. Dulles to call Admiral Espe to emphasize the iiportance of air or seaspe would then go to CW. (Passed this to FGW. who asked the Director to act accordingly.)

I told Sullivan that Commander Veldon had suggested last night that his shop would be helpful in this connection. Sullivan said that he would cut him in.

3- Missed DT)/P's regular PBSUCCESS meeting at noon, but briefed him on the foregoing.

Ii. Ray Leddy called to say that thereS dispatch from London stating that the owners denied any knowledge of arms carrying and said their vessel was chartered to Alfred Christensen of Navigation Co. Ltd. of Stockholm for three monthsb. Ha. said this was different from the information of yesterday that E. E.o. of London were the charterers, to which he agreed. Later it developed that p. E. Tlesn Co. were sub-charterers to Christensen. Leddy said that NSA has information on E. E.o, mostly derogatory.

5. Cordon Stewarto sit ineeting witho discuss DD/P's request forth?

development of some solid intelligence regarding Christensen, the chartereri mentioned above.

Wednesday,;

1. Ray Leddy calledonsiderable state of agitation and concern about the SSALFKEK. He said the Assistant Secretary of Navy (Defensead been alerted.and that "somebody Mas going to get burned for this."

lie asked ne to let hiai knowad some solid information stout theeparture from Puerto Rico. Called Hr. Emerick's office at Treasury about this. He said he had not yet heard but would let me know.

?. Talked to Commander Sullivan at ONI.

Attache went to Puerto Larries and has nothing to addtho Army sent in (seefc.randum inaval Attache went1'exico.

has idea that WJLFSBROOX was ofrioaded at sea to Will endeavor to check the two routes to see if they crossed.

answers yet from Northern Europe regarding thevessels.

a new vessel, the Italian SSAQUILA, enrouteto Venezuela. This is the first ship coning directlythe Iron Curtain to Venezuela-

we get word that trie Thorden Lines' SSSELnA or SSKULDAthe area, ws car. sendlash las-ed lately.

Sullivan asked me what the Director had said to Admiral Espe,as net able to hoi? hi* with.

3. >ir. Emerick called later to say that his_lstest information was that the ivlilfSBROOK was expected to be Finishee^on Monday and mould be out of

"ucrto Sice today. The attorney for the SM'IS indicatediphtfade for 'iJD.OCO damage. asr-ed tMs inforaatjon on to Ray Leddy.

b< Sullivan called to say that the Northern European check hadist of twenty vessels who had declared for Guatemalan ports (see memorandum datedsy in file.)

Regarding Staterom Guatemala City dated ISons ammunition mentioned) he said they were particularly interested in the KARIE WISE, also, the HELDER from West Germany shows up as Interesting. He will keep an eyo on all of these and divide them into categories of first or second possibilities, and will also chock back to see hA< many stopped at Stettin, and then go cut for specific requests for Information.

5. DD/P'a meeting0 hours.

reported that Hr. Holland at State had askedof Defense Anderson to really lay on air reconnaissanceCaribbean area. He saidightetteresult of this.

j.X. awl*

Information inrom Guatemala Citytons" to C- Jsfter checking with Ray Leddy as to whatsent to HI COG Bonn. 0

Director reports that the Swedish Ambassador believesare trying to purchase planes in Sweden. ThisToffr deal, (eel State

4. Tnere is very sparse information about Alberttockholm, who are the charterers of tho ILPHBH.

e. andedoy* of the memorandum of conversation between George Abbott of our Embassy in stockhoLn and Kr. Ralner at State (see file).

6. Upon my return home after dinner, Icalledsaidew ship had been sighted off Cuba names SAJMA

(see State message fromated He said that ho had gotten in touch with the British who were notifying Belize, and he himself had notified Lincoln, Ouatemala City, and Tegu.

I also talked to Ray Leddy who said that he had repeated this message to Londop and queried Kingston to verify the flailing as there is no Lloyd's llrtlng of any such

leddy was very insistent thrt the Navy should be stirred up, as he felt thisritical night, and if the %vy doesn't know who cones into the area, who does?

1 talked to Al Levy in ORR/DER whosaid he had been talking to Lt. Barney

Smith, the duty officer for merchant shipping at OVI. ried to call Cdr.

Payne, the OVI watch officer, and failing to find him, got Barney Smith. Ve

decided that since we did notame or description of the vessel, we

couldn't do much about surveillance at this time of night. If Leddy haa

queried London, that was as muck as he could do, as clarification would have

A

to te received from the source.

finally decided that everything had been done thV- could fc- done andack to bed about.

fc

telephoned.

agreed tliat surveillance could be discontinued onnow tliAt she had been thoroughly inspected.

the SAJMA, he said he had net yetut will get after Barney Smith at OMI.

I passed the Thorden Lines' SSSKIHA idea on to him.

Leddy called very much concerned that both State and CIAwritten confirmation frees Navy of just what coverage orare planning to put on. It was his reeling that when this wholeup for investigation, they will duck out and deny that they werodc the things they should have done.

Leddy felt the following items should te nailed down:

There were reports of two ships coming tr.rough. Tteesn't the "avy identify evwry surface craft coming through the area? (Sullivan Says, "Sc." Ho doesn't know what the Canal tone reconnaissance is but fce knees that no reports cone up frorr there of surveillance.)

t. Ke want Information on the 5AJ"A. uggested that ne might call the Consul at fCtnrston. He thought thisood idea,eardre about it.

c. Is the Neva] Attache at Oofiter.ala City doing anything? Has he reported? What can the Havy do about all thia? Have they any report fron? Ray Leddy will draft sonttMn? on the above to Oefsnaefavj and senda copy.

I. Al LevyEd Oalbraith's shop) called. isop> of ?inrat;r. ruesssge. Ha asked me to tio OWI tbat head been in touch. ne described Barney Smith as sortookkeeper at OvI sho keeps such score's of ship movements as liavy has.

some information that Cnrister-sen and ijstsf Eirger

Thr.rdeno have been associated together

^. n hour at the Pentagon with Commander Sullivan (set separate memorandum attached).

f-. Ray leddy called again. wants to know the following'

a. did the WULFSESOOK leave San. 5id the ALFTO1 stop enroute to Pyertc Barrios? Agreed that

the Dakar Consul can report that.

he was putting the history of theown inhe read to me later. Sounded okay.

Associated ?ress called to report from Tegu thathady fron Hamburg and was due at Puerto Barrios

'.ay drying arms. Ho indication of her nationality and not registered lr. lloyn's.

Leddy called my attention tc another shipa copy of which is in the Maritime Administration.

iaid there was something verytaffntelligence

"Sort space is being arranged i- hotel for guests."

T. Kr, Dn%lck called from Treasury to say that they hadisitepresentative of the Netherlands Embassy to inquire as to why we searched theand what was our intelligence. Emerick said he had nljved this vary close, refusing to give out any sources of intelligence, and the',itter of our Jurisdictional rights in Puerto alao. kaesn asked whether It had any connection with theesos remVnn very polite and said that he had ne comments. Pc left with the statement that

they uculd have toB plaint tc State. assed the foregoing to

5. Called Sullivan to give him the SSWALSFOiiD story nnd check on Found his office was closed

Preparedo ons'1

calling attnetion to Citato cable on this subject.

10. BO/P's J

a. Reported to Xessrs. Visncr, Pisseil, and Heiiaed, Sullivan's attitude toward ooopi"te reconnaissance in the Caribbean area, pointing out that itot reflect in any way Holland's report of yesterday about Under Secretary of Defense Anderson's cooperative offer. alled Kr. Holland to say that apparently the high purpose of the Secretary nan not filtered down to the uorkinr level, tut to keep ourut Of it, for peace in the family.

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and dictated the

message:

Haveable fron "L" which

riority answer giving full details

of the ship now at Puerto Barrios and one calle SAZKA.

"Details required are: colors of hull, superstructure, stack markings, boons, etc. "L" further requests that same infornalion be provided themontinuing basis for any other ships cxjiectcd to arrive with suspect cargo.

"Any message that you care to send in

future regardingill be happy to dispatch for you."

info ia available so that he nay send priority

4r,

Friday,'

Raycalled to inquire shcther th- lavr had been able to locate or Identify any shins, to which the answer was negative, and also to call ay attention'.-itc cable goinn out to Stockholm regarding the cancellation o? the SSALFV-V'a.jArwl*^-

Sullivanalled to say:

Navy had gotten out messages yesterday (see CWscertain ships and settingeneral reconnaissancehartor of Fuerto Pnrrios. He did not knew how far out Lntofea this net would extend.

said that ue could scratch the (BETAff ournii rapcrtcd to be near Port .Said.

passed the foregoing onto Ray Leddy.

lSQuflSed .iy Puerto Hican trip*"H

He agreed that tier* "as no immediate rush about gettlnp theanifests intn tha workh^ck of the nanes of the consignees, and it was leftall h'm later for an appointment when tne dust has settledit.

"cic!of -hat he shouldable to

In3 asking then to verifv the spelling orhip repnited to be carrying fiber board ori^nallythethtt this innocuous cargo would undoubtedly not

SO into San .'uar. If it wirealse manifest, and,o further action in SAM Juan weald be required.C ^Jsaid ho would sign off on this

cable for re,

State cable iihfi? fron Paris datedayoading atalkedthe French Desk,to alert o this inis sendingto ^Jtoday, pinpointing the SS^ASSEI.L.

Bill Durkeesable Jii London too this ship-tent.

Leddy called to ask ne whether anybody was running down thehad received that the Chase National Pank had handled the originalfunds to Switzerland for payment of this shipment. aidad not heaH the story before.

a. AttendedPPSUCCSSS meeting at noon. as asked to call Vavy's attention to Ambassador Peurifoy's pleas for action in hit' telegram received tr>ray.

9.pent about an hour at KSA with C- Id that

all listed ships have teen put on NUK coverage. Sullivan will be gettingdata, and will also be sending me regular Navywill

post the situation map in kis office andill be the focal point in MSA and will forward all information tc ia teletype. C*

in. Sullivan called to say that he had received two additional lists of possible ships, which he will keen until tomorrow morning and then we will discuss hov he can tret them to me.

eported that they hadable from Lincoln,

riority answer giving details regarding the coloring, superstructure, markings,f the SSALFHBf and SAJHA (SAIHAA7 ) alled Sullivan and later Lt. Fnox^eave ne certain statistics, but no colors for the ALFHEM. ent over all this with Sullivan again, and while weeneral Idea or the superstructure of the AlfflW, there was no rim information. The fact that she Just changed hands3 makes her colors very-

. Drafted cable toJfrono Ambassador Willauer, giving him the highlights of State's negotiations with Tnorden, the real owner cf the AlFHEHateday)

Pfiff

1

isx of conversation

Commander Sullivan andPentagon,u

1. All Kiel Canal traffic for the past month will be assembled and studied by Lt. Barney Smith. All shipping from the Baltic, North Sea, and tha United Kingdom, declaring for points outside that area, particularly the Caribbean area will also he assembled.

?. Sullivan said that itc had passed to the Atlantic Fleet ouringering the Thorden Lines. He is also telling then that thef Thorden's looksoaaibllity, and that the AQ'JILA, an Italian vessel sailing fnm ndansk lo Puerto Orriarastay off Und's End,ood possibility.

3. Sullivan paid that he hadequest to Stockholm, Helsinki, london, and Caribbean late last nightM 2infonwtlonthe Tnorden ships. Vhen he has gotten some answers back giving positions, he will send out an alert to prepare for reconnaissance.

!:. He said that Admiral Espe, CM, thj3 neming had indicated that he

A

econnaissance in the area, but Sullivan was only asked to find cut wnat were their capabilities there and work with Smith getting ready. Sullivan figures that it was the kind of job that was done on the SSW0JSW00K, butointed up some of the larger ideas, he will nowider reconnaissance, which Admiral Espe, of course, will have to decide upon. He.ck with Captainheis he:,.

5. Discussed the SAJMA, which" Sullivan will pass on to his hoys.

although it known toarble.

Sullivan said that he did not think that Wavy was capable ofomplete reconnaissance jobarrier were put in the area and all available destroyers also put in as pickets. He went to some length to explain how hard it would be to interrupt the training activities of the COHAL SEAS as she is expected to go to the Mediterranean to replace the

7. intedad heard something said about the Acting Secretary of Defense promising action and complete coverage, but Sullivan ^id not seem ir-pre=sed. (Seen today's log).

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JatVn4-" May 19

Ray Leddy called to check in.

Cdr.orted all incoming material

have an operationalonm*rder o' the Caribbean Seathe situation well inoing further than originally plannedare getting submarines into theay hear something today.

McCornlck is taking the list of ships from Earney Smith dour-

S RUBICONME looksstanbul toay at Holtevanh enroute to Chile

- will tossut thinks shey doubtful

regarding the Thorden Lines'll appear to be out for-ay in Baltic

oing East in Ealtic on Uth

oming into portarlbourg (Ea^tbcund ?)

h left New York for Baltic

eft Stockholmth for New York

rrived New York on loth

rrived home base on the LUth

rrivedh from East

h "antyley enroute toargo of timberoming up from Pt. Said s. Idea for approach tolaying coy unc" not telling iruthHasist of his charteredLTHEM arrangement so

ight give Asked Led'y who ?Aid ItJ idea

andats.

aturday

- will ETA Havana 2lith to pick Up sugarn formation to

P.O.nteresting Look up

will he called atet for State contact -fftt the- formal treatment.

Sullivan recomaords w* designate somebody to receive duplicates of State material.

Formalizing in ordsr to keep everybodyW Duty Officer will decide how many Admirals are called f ullivan

3- FGW Meeting

Get list from Sullivan -wants toonferencetate re KASSEI. nt llli5

and communicationse field.

Sta'e has alerted thetations inre following ships 3. (Semar.; remenay

b. (German) otterdamay (Oet copy of this Stateean will cable roan to seero- Pariselayed to Bon-seGerman) amburgailedotterdam 2U,

h

C. (British) h (going to Antwerp 7)

e. otterh, scheduled Bremen and Hamburg

, Saturday

amburg io, 21

SAIMAA on trampresent itinerary Known only PIoliisian Hay 7th in Helsinki

5. Sullivan at Pentagon

over all entrances toorie planes, so'ne snips and two

lose survei*e for Puerto Parries karbor

sked Tor but not assigned yet.

Admiral taking, operational control of two squadron*

Good coverage for future arrivals

If already there?

Barney Smith reports no reconnaissance report to date.

onday Sullivan

m"

Admiral Carney sentSato Saturday night telling them what to do. esult Commander of the Caribbean area sent out his orders to his people

Latest report indicates 1st report of type we want should be startinginut everybody won't be in position until late ^sald yesterday he'd like

Barney Smith'soinpicking out most promising natv-3

C- 3

1. What left Bilbaoay for Puerto Barrios?

?. Cable totaliso they have this? Jsaya Askandsv pouch referred to in

Ask ^whether they

hat can Italians tell us about her owner, charter, etc? Ask Leddy what la being done about checking Natural le Ccultr* etc thru HTCOO

r_ 3

Justine O'Donnell is here from Theould give ideas on what C- Jl ould

*>as him in tow -

Ask Ledjy

1. Where wasr'.tish ?hlp In Puerto Barrios area?

^ uoultra re Hsmcure representatli

Jj'oc,ny itinerary, from Ponn? 3. v> Jrfaa asked tc check ^ai^si-le. Coultrs re Hamburg representative

U7

1. Esterline

oinp to Keyclow Is on

week-end all

Galvez of Honduras has asked forf Resolution

Italian shipsJtc see C - Saw C- Jreee notes !l. ee notes on Frank G. Wlsner

liaison of Leddy with ONI as well as ourselves

ritish ship in this picture

Alalled attention to Havy

SAJHA off coast

POKOV telegram at Fort-de-Eranca (French West Indies)

id she arrive at Belize?

Has State anybody there? Ask British whether they have heard.eeps coning uproute to Puerto Parrios

ee #3

Called to office cable secretariat read

-talianar.burgpril;;

a. o man at Puerto Cabezas loadinguerto Barrios next port ofo we embargo? hat isKaZC'lES? Leddy will look at manifest but don'tasy toheck on cargo.

as replied - ives nanes ofBICCIWE data

Oiw-7

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Esterlina

eddy very insulting about not layingerrogalicn in Key Westcuromesticfor Sullivan

Stateet reference for then reuat have something inill put on list (Sullivan says okayfr Frank Ii. Winner

Navy alerted to check in with Key West station to arrangeand let us know when she getsant informationand discuss with Kavy and State make upeam forInterrogation. (Leddynow about thia) OK to Sullivan

ohip in Canaleported to have Browning automaticand pistols consigned to San Jose,. Polask

ons "hardware" for San Salvador tfKHXM) saileday,ay, Le Havreay for Vancouver.

State asked San Salvadoraid they knew nothing about lt -would like hardware removed in Zone and will pick up tab to fly in ifillours and check the stuff.

sentopies of message re (b) above. Get Edwards to cuton any such stuff.

Dick Blssell's attentionavyconfusion re action In Canalhohat7

65I|ept by LFHEHnd note story

Second ship dueeported unloaded some cargo in Tela

Word sent to Havana JL Jto contact mate of ALFHEK, if an when she arrived.

f. PGi to Dulles

Bissell's eo'inlttee OCS, should consider

(I) BXPIflM interrogation at Key West or VtXrWK search at Canal Zone

Sullivan

will be followed to see that she goes to Key West. Told FOW

ofhinks Vavy should be in on itwill ask- have instructions indicating CIA ft Wavy are Joint

ALUSNA Stockholm

coning In from individualSaw this and saw that"does CIA uant to hear? Pally summary coding out, agreedokay.

- inave Sullivan number of State's garbled) reply

C- J

look over Italian package

ending ovor Hottest yet0 hours

Have been discussions In past as to responsibility for such interrogation.esult, navy want to know how ve want Itot in position to grab and run. If requested, can either -

it forant program to work from

it withave our man on team

Legalnce within three mile limit, State is out. Would be CIA, according to Sullivan.

Want to set upTA mayh. being

Assumingacked, can'tessage log may be cause of Sullivan* not knowing. Holland to

7. 0 hours

Thinks./shouldr somebody who knows shipping

V'antsin with background

Just had phone call fromeftay -i'Ah.

Owner called tftree ways that tine charter cancelled but previcus orders

for loading sugar are food. First loadingntilla, Cuba (East end of Cuba

On way to Sntilla, anchor at Key West and give "American authorities.

A

Asked for confirmation, but none has beenoday wired (over

f

amelso sent message thru Direct Swedish communications. Askbout FBI? State should clear if CIA is requesting.

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Thursday,ayJ C Jaur.ence)

alledattention tof Guatenaia

Cable. He advised rw ho was handling this but underlined again that the whole operation is the responsibility of C J

In reply to ry inquiry, Comdr. Sullivan stated he has no further word on the Tranvik and expectsvcd this evening. At this time, however, Savy surveillance of Puerto barrios prevent tba entry of any vessel.

Emorlch of Customs phoned to reportoon meeting which is covered in memorandum ja-epared by FG8 and appropriately initialed by the participants. This bom is for our files. esult' of that nesting, Enerich wished ne toto reaffirm lhat the vessel was not to be released wl thoutJapproval. id0 and advised HJW,

loOO: Dawson Smith inforred meessel, probably the Pulaski, had left 'Canton headed out to sea. Ho, Christopher's personal opinion that the request to the Navy for surveillance of this vessel night be neglected due to higher rriority*in that area.

FGWhone Comdr. Sullivan toin the question of Jurisdiction between the Navy and the Coast Guard at Key kastt. Sullivan confirmed that the Coast Guard was charged wi th this matter and that the UIO's In that area had been alerted simply toll possible help.

ItOO: Struve Hens el phoned to ask CIA's concurrence on the SSsavins that search had uncovered only five ur six cosco ol ariw jik! tnat he and Donnelly of State re*-or.rended release of the vessel. On advice ofnformed llensel that CIA concurred.

Friday,av (fj in C Jabsence)

contact Captain of the ship.

C J

that ho had briefedew minutes

Attendee meetingho said AWD hail that morning talked with Swedish Ambassador who had made the following The Swedish Consul at Tampa la only honorary and therefore probably would not be veryhe Ambassador said he would be willing to talk to the Captain of the vessel in the event he proved hard to handle. TOW advised me to informJ of this. However, shortlythey talked together by phone and covered these points at that time.

mation on to Comdr. Sullivan and advised him that pow wants complete !Iaval coverage there.

Emerich reported that all went well at Key Went and party expected to havo completed their work0 this evening. o advised POW.

On rOW'sold C Jofot to lay on Its operation in Cuba iti reapect of contact with ship's crew. tated that the request had already gone forward.

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with HUtlc Poheauin, ,wedlsh

Ambassador to the 'Jnlted States

., the undersigned called

he Swedlah Fttasty0une to discuss witheeeedor tne interrogation of the oaptalo end crew of tbe Swedish actorW,called et Key West for this purpose on

Ambassador waa rery affable and explained that hit entirethe case waa merely ourioslty since the owners had voluntarily ordered

Xt"waa not

dlreotly conoerned In any way.

described briefly the boarding of the ehip In Key Mast andcooperation whioh Captain Und had given ua. Including thehis logs, charter papera,nd his patient assistance in theof hit signed statement.

oU*r astedor that Captain Und had firmly

insisted all through the Interrogation that he had no knowledge of theof his carro, and he did not feel that lt was any responsibilityto question the manifest. On this point, the Ambassador commentedwas .he typical attitudeea captain, particularly whenrsap vettel like the

out that no 'wtdisb In. or regulations

?! MMl toohof foreign port

nywhrr!tt bringing themedlsh territorial waters. (Query, Did the owner visit the ship on the outwardt Copenhagen In order to keep the cms out of Swedish waters '

'he Ambaeiedor then brought In from anotherhree-parewritten In Swedish which he had received from theffice ii

lbert Chrittenaen, the sole

directoravigation, the charterer of the ALfirEV. The Ambassador ran

-"orandum for my benefit In English. It was principally concerned tahlB averment protesting his Innocence and lrnora-.ee of the true nature of thia oargo. Two points, However, Ui appear

significant

significant. One was that the real principal behind the wholo deal waa located In England, but Christensen refused to reveal his Identity. (See paragraphelow). The second point of interest was that Chrlatensen had run afoul of the Swedish currency oontrols oeoause for purposes of obtaining foreign exchange he had given tha Ihitoh -est indiea as the ahip'a ultimate destination and not .luatemala. ed to ne Ihst thisurther example of the deceit and conspiracy involved in the caae.

7. Our ravie* of the memorandumquite aicetchy and It la not entirely dear to tne undersigned whether it was the real charterer behind Chrlatensen or the real ahlpper who waa located In England. sked the ambassador if ho was poing toranslation of his rep- it to the Department of State, which he said he wae not going to do. However, he did Indicate that If his friend, the 'Ureotor, wanted to study it, he would be very glad to turn it over tobut would have to ask that the contenta not be used againstin any way.

3. entioned that the V? was reglateredbipoing and chartering coapanyinlmua capital of KP'S.PCO to which the Ambassador replied that It was obvious to his that the ccmoany nao been set uo solely for tho purpose of handling thia shipment.

9. The entire diacuaaion was -oat friendlyold the Ambassador ' hlm knov ifbad any further developments. id not ahow h< any of the aimed statements made by the captain or members of the crew or any of the other documents.

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Original document.

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