Created: 3/1/1954

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Aa tbe work progresses end grows acre ooaplax, wa has* to ba extreaely caraful to adhere to tba divisions of rooponsly aod egreeswmt* previously laid down, both in natters of polltioal practice and finances.

I bava no wlah to 0x7 over iplllad atlket toe inpraasion tbat tbe Croup doee not altbar. Bowwver, tbare are factors froa tbe peat whli'h are eei Irnmly disturbing. One of tba principal onesiscrepancy between the aaouothat Pablo aaya he passed you in January and the eaount you acknowledged receiving in January. (Rote to Fordi Details of tbe discrepancy ahould be available this evening from Pablo's aide.)

During February' tbare have been other problenaerious nature. eel ccapletely bound by the Gentleaen'o Agroensot which we aigned with the Groupavedloation froa tbe Group that it ia abiding aad will abide scrupulously by tba Agreeaent. Tbare are several points of the Agreeaentut call to your attention again1

waa agreed that youould use only tbechannels of "ml cation Thla has not been

waa agreed lhat tbe overall xweponsl trill tywas sine. Tbe dispatch of your Secretary ofMexico does not reflect the spirit of tale Agreeaent. Itagreed tbat tbe propaganda budgota would be aubaltted,consultation with you, froa the odvisora In tbe field tohaa not been done.

0. Xt waa agreed that tbe overall intelligence function would be nine. On at least one verysl an the qualified advisor was specifically excludedensitive operation. In the preparation of the intelligence budget, tbe advisor waa not consulted aoo not bave tbe benefit of hla expert and profeealonal edvioe.

d. Tbe political field, ea you know it waa agreed, waa also eyrreeponal trill ty. Bowever, budgeting for tbat field baa not been left


a. It waa further understoodaa to represent tbs Junta before the Group yet coawunl cations nave been seat directly to the Croup. Thlo Is impractical since lt puts used light before tbe Group and Btnee the Group refers ouch concajnl cations to taa anyway.

Apart froa tbaao apecifioe, tha whole laagultrrlo of the Itaroh budget foracaat haa ecaevhat appalled an eee ao Justification for the trnwntoiD Increaseorresponding arparurlon io actual operations.

under the clrouasUmcee we anet new prooead ae follows i

propaganda responsibility beingn askingto consult with the propaganda adYloore la the field f. end tothan their estimate of the funds needed for propaganda lnJose has been asked by mo to solicit your views on propagandathe propaganda budget ln greater detail. Cut of the information

that Juan Jose bringsill prepare the proposed budget and negotiate it with the Croup.

tha budget estimates for political work,our target area, will also be provided by my sources and by On thle point, too, please give your full advise to Juan Jose.

I will Inform you of the final sun allotted.

0. Onave asked Juan Jose to secure Andrea' estimate and to bring book toroposalhall review end present to tbe Croup.

d. On the nilitary nattare whloh are your ephere ofandave solicited the vlowa of Don Rjeaxdo. Re has given no hia reoowraendatlona,are reviewed. In eons cases changed, and in aome eases accepted es they etood. ase negotiated for your tha military budget with the Oroupoured the approval of certain sons. These suns are being explained to youeparate lettor.

As soon as tho political, intelligence, and propaganda budgets ore completedave negotiated the necessary funds for them fron thehall let you know. ave secured the Croup's approval to maintain these activities on an interim basisan clarify the budgeterynrocednre.

6. If we botheep the foregoing in mind and remain on tha terms of tho Centlsnen'sn aure that these difficulties will not again arise. In the futsre, the military budget will of course be your responsibility. Tour advise on intelligence, propaganda, end political matters will be extremely valuableill make up the final budget based on theeceive fron you and the advisors, plus my own considered review of the situation.

Original document.

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