OPERATIONAL - CONTACT REPORT 16

Created: 1/31/1954

OCR scan of the original document, errors are possible

pbsuccess

AIR MAU

KOLM

Op-ratio

Contact Baport 16

loeopr ia Contact Baportor Haad-quartara inforaatlon and ratantloo.

C. Dt'NBAR

COKTACT REPORT DATBi U PLACE. Safe House B, LIKCOLH ?eraona Pre aen tt SUFOS./t TIXES DISCISSION I

Following ovno-roe only Matters taken up after QALBOHD's departure. HTLXES began discussion of PP organiaatlon aa It pertained0 and to TarlouB organisations in the field.eneral picture was developed as to how the PP prograa fitted Into the ore rail picture and how Important It was. At OALBOND'a advise, particular stress was laid on how tha military oould be defected or neutralised. The current Installations and future capabilities were discussed. Personnel to perform work at LIHC ware discussed and letters have been prepared byf_ Jand introduction to RUFUS to our Jcaae officer has been arranged, hatter of financial control brougnt oj, ^jfioultli Neither is In favor of having funds ooae ^Previously In agreement with this arrangement. Their Idea was xoat, they could nov jasltfy funds coming from. ointed out that our case offioara vouldthat theywing direct . Bo decision vas reach'

Before any further Items of PP, or any of PI and/or PH matters could be discussed, the White Paper hit the presa. After HTUES vas furnished with knownUATe vaa dlreoted to check with RUFUS as to whom the possible source of this info vas. ave briefly that info which vas gathered from RUFUS. His attitude toward MUXES' insistence for facta to back up statements which indicated info leak vould be SOfCZAS or PABLOcceptance of fact that It oould bs his man DELGADO or Capt. SIERRA vas one of ilmtissjattoBti

3. Thia oonversatlonCpararought up subject of security. WTTJtKS indicate that he vas personally certain that the group vould want to study all of theidefore continuing as scheduled. He advised that on tao previous efforts the RUFUS roup had been asmeromised at the last moment, aausing long delay and costly re-financing. Forttila reason KTLKES atated that it vas his Personal opinion that RUFUS be prepared to either explain the fast with the lnfo that hia group bad been penetratedigh level from the beginning and/or his current rat hod of security andractices ware not adequate. RUFUS defended his position strongly by saying that hia men should not be judged too severely and that he, personally, vas responsible since he oould Dot eetabllahystem of checks andwith his sensitive Latin assistants.

.RYBAT

It, r tba easaTUXS returned to the house and the matt of security vu again brought up. At thla point BOTUS, without any prompt adrlaed that ha had learned now that DELOADO had betrayed him and that ha was willing to accept tha ldaaa of the group ra* security and FX Ope. KT1 pointed out that althoughould Lose eons authority and reaponalbllii ba weald receive the benefits of better Intelligence and security. Be agr* and eald that immediately upon bis return ha wouldeneral order va vould necesaltate compliance with all measures deemed necessary by our Tl officer. Be eald that all ef those sensitive people vould have toeneral Is* which aroseesult of this DKLQABO betrayal or ba remove to leas sensitive jobffpfrf his general Headquarters. OTTOS agreed that ell elements of hla organisation vould bo advised to adhere etrloUy to ell new aacurity regnlatlona as suggested by our FX rep and issued by BDTUS* oomman

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