Created: 3/12/1954

OCR scan of the original document, errors are possible


d be uted in tho "TO" column. Under cadiine ahould bo drawn arrnaa aheel dwith iho number in the "TO"eolumn. oflicer should initial (choch mark intu'tident)

before further roirline. Thii Routing and Record Shoot ahould bo returned to Rooiitrv.


i 3

by hand






Acting Chief or Hiiilon, Guatona


mVOtm Operation in HSBuTiHT

In aU parts of tho world thore are individuals who distrust andMEF.. .'iany of those people havo or think thoyooGon for thoir foolln-s. The groat mjority, however, arc not actively or passivelyJSE for neraooal or even for historical ro as oris. They are simply prejudiced and, therefore, not rational but onotional.

In Latin America

The oxlstonco or prejudico Is particularly truo/ln tho oase of tho uneducated whs regard PETCiIHV as basicallynd,foro. fundaxjontally clion end hlatorloally antagonistic to their Indo-Spanish heritage and way of llfo.

Thisoapound of motional ignoranoo and political-social Irnaoturity, can not be lightly dieninoed. To tho contrary. It is en ovor-prascnt but variable factor which rauat bo taken Into consideration In all iB?7tlVZ activities in this henl-ophoro.

tfetdor optiaua circumstances, education, loglo, und thaf tlco would tond tc roduce. If not ollnlnato, this antl-PB?RIfctS prejudloo. ifowovcr, circu=etanoog in much of Latin Aaerica, end particularly In ITSSO.-uVT, havo boen moat unfavorable and antt-PBrrHtJE prejudice appears to bo increasing rather than dlnlnlshlng. overcoming prejudloo through logic ia cxtroaoly dl;Tlcilt when not icrpocaible. and eradication Of prejudice though education la vory slow and tlce Is running out.

It appears to ac that an alternative is to counters-act tolaby Coming old or arousing now prejudices which' would tond to bonofit rathur than dotor PSTIU-'K aotlvltloa and particularly thoos in connootlon with

govornnent of ifSDTIUiT la eo;;agodntl-rBPnilir projudloo not onlyB*JH3Tull othor nations and particularly ln Vxono oforSKBXJjWT sovernnwnt and Coacruniots ovorywheroaccjsatlona of Coaruniat lnfluonco or doainatlon ln


WSBURNT are but efforts toovernment which is valiantly attomptlnr to rescue WSBURNT from the voracious PBPKIHB Thoreforo, anyone In or outside of WSBURNT who attacksand/or the present WSBURNT government Is accused ofackey ofmperialism.

The many people who are prejudiced against PSTRIAE areroceptive to this propaganda and It is evident that, with the enthusiastic aid of the Communist organizations ln otherconsiderable success has been achieved. Prom newspaper accounts It appears that certainabor and other groups have declared that thoy will give armed aid to tho presentof wSBURlJT in case of an emergency. Political loaders ofnd of othor countries aro also reported by theto have proclaimed their support of the present WSBURST government.

Tiie alleged support of Identity As and of Identity Ps, etc. is of leas immediate importance, however, than the effect which this propaganda is having in WSBURNT on those who are politically noutral or, in somo cases, even anti-Communist, It is worthy of noto that the so-called anti-Communist press in WSBURNT often refers to PBPRIUK as "imperialist" while calling ths satellite countrios by tho term "popular democracies."

InU speech delivered at tho opening of Con-grosa, tho WSnViRNT president openly associated hla government with the Cotaraunists, categorically stated that he will not Isolate or take measures against thom, and, to the contrary, will continue to nedd and welcome thoir collaboration. The WSBURNT president went so for as to stato that attacks against tho Communists are butattacks against his government.

Though tr-any are still reluctant to consider the present WSBURNT government as being dominated by the Communists, even the aostinnocent and politically naive people In WSBURNT now realize that their government ls intimately associated and Identified with the Coranunists.

There is also every reason to behove that tho majority of WSBURNTs also considers that the Communists are Just as completely identified with tho present government as the government iswith the Communists. Por this reason, they apparently give little attention and less credence to the recent public statements byo the effoct that Itree agent and supporting tho prosent WSBURNT rrovernment because that government is carryingighly patriotic and honest policy which is necessary for tho wo1faro of the WSBURNT people.



Though announcing that it doea support the preaent WSBURNT government.n this statement clearly Implied that it would not support and would oppose tho present government if that government were engaged in activities which were not highly patriotic honorable, and necessary for or beneficial to the welfare of the

poopie ofitiiT.

hic statement has ostonsibly placed itselfosition to support or oppose the future activities of the proaont WSBURNT government. However, this atatomont clearly puts tho stamp ofimunist approval on the past and present activities of that govcrnaont.

The complex problem wo face,ee it, can be broken down as follows:

to discredit and diminish the effect of WSBURNTabroad and especially inhicheighbor;

to bring hone to the WSBURNT people and others thatgovernment is not patriotic, is not honest, andunselfishly Interested in the welfare of the WSBURNT poopie;

to arouse the people and the armed forces againstWSBURNT government and againsthich is soclosely idontlfiod with the present wSBUHHT government;

Id overthrow the present government and replace Itgovernment which would labor for the welfare of the peoplewould attempt to eliminate allnfluenceand would actively collaborate with us in ouragainst Soviet aggression.


It is my conaldorod opinionossible solution to this problem could be achieved throughhree-phased KUUOWN ops ration designed along the following linos:

A. he Bulld-up

I bollovo it feasible forIdentity A, or

mall, specialized PBSUCCESS detachment in Identity Ajust over tho border from Identity C, to mount an operation



Page Ij.

against Identity C, the largest, most northern and most neglected state of department of WSBURNT. Essentially, this operation would be that cf Infiltrating KUBARK-controlled Identity APnaUonair?nt>hey, preferably unwitting of PBPRIiK Interest ln follo!vingrilnes^ ^rqbql7tiz^ natives oflong the

f the0 people

KJbecause the majority of the inhabitants ofre considered as Identity As, has done nothing forut, to the contrary, has ruined'the Identity attachmentsupported the people of Identity C; (See

iwiarn'SS6* ofneglect adopted by thechewhich formerly existed have beenxtenfcandbetweennd tho reet of WSBURNT is feasibleby burro and during the dry season;

P"blio services suoh aa schools, medical facilities

Ji nS withholdpreaent WSBURN?ae Mj;ritl! oC thefre Identity As-nsldered as WSBURKTs bj the

* 5* 6 fo5 thie roason th* WSBURNT government la willing toavoiLd doine anything for the people ofC that every effort-has been made to prevent the developmente?ourcefl which. If developed, would bring wealth and prosperity to the natives of Identity C;

c!leor Identity C, who In their majorityreiBeraber tha*ka!nd the Identity Asnd WSBURNTnd WSBURNT were provoked by the

lne- BwwfoM. the People ofPr?aent WSBURNT government as not truly WSBURNT

rocelve decOTt treatment from the WSBURNT

UnUke *SB0RMT' ^eota and

s developing the petroleum deposits

iiT*** nd the people of that area ofill be como rich and prosperous;


That, If the majority of the people ofo desire -and the majority are really Identity Aahey have the right to break offURNT and request to bo annexed toince WSEURKT has often gone on record aa favoring free determination of peoplea and, therefore, could not object;

Thattep would be both right and Juat eince the people ofave nothing in common with the WSBURNTwhich hsa ahaaefully abused them whereas Identity a, on the other hand, would welcome and correotly treat them.

I believe thatroselytizing mission, properly conducted, should have considerable success among tha miserably poor natives of backward and negleotodho have sovera1 times made protests to the WSBURNT government conoernlng their plight but who have received nothing but vague promises.

Essential to the plan would be tho formation of an "Independence committee and eventual widespread knowledge In WSBURNT thatfrom Identity A, and probably at the Instigation of theof xdentity A, were attempting to gain or had been successful In obtaining support from the people ofith the expressof asperatingrom WSBURNT and eventual annexation ofy Identity A.

There Is no doubt that the first step taken by the WSBURNT govern-ment would be the dispatch of additional troops toy air. It might be poaslble to arrange for dlffleultiea in tho landing of the troop transport planea at the oapital elty of Identity C.

B. lunting WSBURNT Propaganda in Identity A

There is reason to believe that the people of WSBURNT would Jump to the conolualon that the disturbances Inorebyiew toward annexingust as was done in the past ln the cases ofnd H. Though many years have passed, the memory of the loss of these territories still rankles as does the faot thatlso lays claim, as does ITS BURNT, to Identity I, The latent prejudioe and distrust agalnatould be aroused immediately. Officialenials of Implication would be accepted but would not receive credence. On the other hand, accusations againstould annoy that nation and Its peopls. Anti-WSBURNT prejudices InA would also be fanned by pointing out how people ofirth or extraction aro oolng abused and aro forced to live ln

RiST /

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abject poverty because of the negligence of theWSBURNT government. Pictures taken by the infiltration agents could be planted In the newspapers ofnd would show thelivlnc conditions of the natives of Identity C. The sympathy of the pcoplo andofould naturally be in opposition to tho government and people of WSBURNT and in favor of the natives sfho would be considered ins guilty only of loving Identity A.

This should certainly blunt the effect of WSBURNTIdentity

C. pplying Pressure in WSBURNT

At the proper tine and with the WSBURHT-Identlty aits height, arrangements should be made for the widespreadin the WSBURNT capital, and preferably by tho ESSENCEthe information contained in Amembassy despatch

3nd herewith transcribed:

"Identity J, opposition Deputy and publisher,eries of press articles recently accused former high government officials of troason, alloglng that they released secret petroleum information tonterests. In the bitter controversy which has ensued ono of the officials has asked Congress to impoach Identity J.

"The attack began with an editorial in Identity J's newspaper which implied that Government officials had given coplea of aecret petroleum studies to anil company in which the WSBURNT officials held stock. Accompanying the editorialrawing pur-portodly showing how the company by meansell on thoide of the frontier would draw off oil the oiloolbothnd Identity C.

engthy article published onebruary in both thein whichs intoroated.oro oxO pllclt and detailed exposition of his accusation. He claimed that Identity K, the ex-president of WSBURNT, and Identity L, the ex-Mlnlster of Economy, hod conspired to prevent the development of an oil industry in WSBURNT by having thw^Consrees enact petroleumthat kept out foreign oil companies and by giving secreton WSBURNT petroleum deposits to Identity M, located in the capital city of Identity A, in exchange forof stockow oil company called Identity N. It was alleged that that companyto exploitil deposits near the WSBURNT frontier ar draw off oil frcmn the manner described above. Tothe transaction, Idontlt;ub-director of the National Petrc leum Institute, was sent to the canltal ofohotc interpretation contract with Identity H. lao accused th*


C3 Past 7

Institute of negligenceeologist or

Identity -t$onsultant sincecapacitvad

he Institute'nho took infornutlon

of interest to identitynd toof identity A.

"Identity P,uinlst director of tha letrolcu^ Inatitute,engthy press release denying most of tho accusation. He claimed that the material siven to identity II conaiated merelyet of aerial photographs, none of which was secret, and that they were of nu use to the identity As since, prior to that time, Identityad thoroughly explored the areas bordering on ho claimed that the photo-interpretation contract was given torincipally because their fee was loser than any othor offer received. Refferdinu Un.of Identity h.erely said tnat tne Institute bar. difficulty in pertuaclng^ to allowoccasionally tond thatorld-renowned geologist who would not think of using his position with tho Institute to obtain confidentialfor Identity A. The release did not mentionor explain why tho contract withas signod in theof Jdontity A.

"On Februaryhe petroleum controversyensational turn. ormally requested the Congress to Impeachor libel, pecial Congressional Comulttoe was formedttor, but upbruar>o report had yet been rolcusod to the press. There appears to be considerable doubt that under the circumstances an impeachment would be legal. aa many enemies amour, the pro-Covernmont deputies, howover, and hlo case may not be Judged Impartially.

"It seems probable thatulnerable spot when he attached theandling of potroloum riatters. Although lt is not possible to say whether his accusations are true, they un-douotedly contain theso olements ofince its inception the Institute has sone out of its way tc maintain cordial relations withhe government gave aerial photographs andother catorial to Identityigned theontract in the capital of Identity A; (ti)'the contract has not beon published In the Official CaEette^ajid the Institute has not oi'forod to release it for publication; (S) Identity K, anmployee, worked Dart time for tho Institute and is reliablyto have had access to all the Institute's reports;hera is little douot thatttempted to obtain exclusive exploration and exploitation rights in NSU'.RJ? for

A.-iosbaaay despatch Ho.r2 atated tut following "'Ihorr Isonfidential report of transactions betxoon the Petroleum Institute and -iotroloum offic'-Als 'jfhichho ciftrges made by Identity J. 'ho report vaa :irepurod for ths Minister of Jconomy in2 by Identityetroleum engineer in the eaploy ofInatitute."


opy or the enclosure is not available at this station.

Nothing ever como or the proposalpeach Identity J.

Handbills containing thia information and attributing itJor at least tyinr. it up tond thoscandalshould be distributed together withphotostatic copies of the contract signed byithm, If such could be obtained. hould be brandedCommunist and picked for that reason byboth arooffJuly lglig) as the sub-director or theInstitute. It ahould be pointed out thatasA onlnd ln highly suspicious contact withof The Petroleum Institute should be brandoddominated by tho Communists as pointed out

or3 and tho information supplied concerning uils oy Identity's should bo used to advantage. To thia should oe added the fact that Identity L, tho former Minister of Economy and thusfor the Petroleum Institute during that time, is now the hoad ofnd thus directly involved inhich is the very keystone of Communist activity in WS3URHT.

v.'Ith the rcloaao of those handbills should go ringingof treason against the known Communists and governmentwho took part in tho potroloum dealings with Identity A. The WSDURNT government itself snould be charged with having betrayed the sacred interests of the nation and of the people by alliance withnddlng treasonable acts. Both tho government andhould bo accused or actually encouraging theand/or oil interests ofo annex Identity C.

Tlie armed forces and tho people ahould be called upon toWSBURNT from the hands of traitors who, for personal gain, have conspired toroat portionURNT to Identity A.

It should bo stressed and re-stressed that the presenthas oponly and clearly identified Itaolf with the Comrauniats and is therefore equally guilty of betraying tho people or WSBURHT.


The people should be warnod that any measures taken by the traitorous leaders of tho govornment couldonly havourpose the concealment of their guilt. The armed forces should bo called upon to overthrow the government, mete out Justice to tho traitors, and, with the traditional loyalty or the armed forces, defend the sacred interests of tho nation.

I believe that, If CALLItlKHIS and his followers wore alert and ready, this would be tho opportune tlrao to strike.



Page 9

It la requested that Headquarters obtain from ODACID andto Lincoln the following dispatches:fnd No.f Also pleaseopy of L 8 and all available information concerningo Lincoln. It haa been observodistake has been made in the name ofnF .

C 3

fiarle N. Bannister

Enclosures: As noted


ENB/cmh Distribution:



C tt

1-Files tt


ArPACiiiLKT No. 1

I do not hove detailed ijifor.net ion at hand concerningith respect to Its topographical or population chorncteria tics and, in fear of tipping myave refrained fron attempting to jaln all the de3lred

Available information Indicates, however, that tha WSBURNT government claimsorao fifteen thousand people live ln IDENTITY C. However, people well-acquainted with this area agroe that the true population/ is somewhere between ten and thirteen thousand. The truo porcentage of people ofirth or extraction is not known but it ls known that ths percentage is high.

There aro no roads connectingnd the rest of WS3JRST and tho only feasible land comnunlcatlon ia by burro and th is only during the dry season when the trails are passable.

The WSBURNT national airlLnouesday-Wednesday Friday-Saturday flight schedule which departs tho capital of WSBURNT at no fixed hour. Round trip fare is the equivalent

If LINCOLN and HEADQUARTERS arc interested ln this tentative end Incomplete operational plan, more and dotailod information concerningan be obtained enl will be forwarded.



Thensustry ofii*HT la and waa concentrated In IDENTITY C. he decllno of tnis industry la probably duo in groat partarket saturation and to the development of now synthetic replacements, novertheless, tho accepted belief or tbo man ln the street Is that the IDndustry waa ruined by tho for.aation of an inefficient government ontity through which all sales, oto. must be handled. Production figures for the2 ore as follows:



in Quintals^



Value ln Dollars

One quintalounds.

Though the authorities are trying to sell this product and are reported to be negotiating for tho sale of approximately seven thousand quintals, nevertheless, available Information indicates that, fromnd fromarvests,URNT government still has six thousand quintals stored ln the capital ofnd ton thousand quintals stored In tho capital of WSflUaST.

The sharp reduction In both selling price and ln productio of this product has provoked disastrous conditions inhore approximately five thousend^neople worked In this industry.

Original document.

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