CONTACT REPORT

Created: 11/24/1953

OCR scan of the original document, errors are possible

ISTORICAL REVIEW PROGRAM . oau

RELEASE AS SANITIZED SecJFrt'

rekbt

DATE i U3 PUCEi JCK'e office

PERSONS PHESEKTi Col. King, Hans Tofts, l

j

COVER USEDl Hone DISCUSSIONi

i^-pyie"' JC stated that all allocations of funda under this pro j) Jotbe cleared by bin with Holme and Wiener before they oould bedisbursement (such items aa payments to RUFUSother large

expenditures). Be statedprepareo-mo on the subject

of how these funda wore toopy ofand obtain same) lus auoject of establishingcurrency operational fund was reviewed in the light off"that et0 purchasing program ehouxaImmediately for initial requlreaente whloh would consist primarilycurrency, and secondly of Honduran currency. JO masSeekford had stated thatin Tegucigalpa was holding

n foreign curranoies lor and that he had been askedthese funds off their commended that this representtha initial purchases under jc atated

had definite obligations and had made commitaients to support this project end that he did not oonslder the funds held by them in Tegucigalpa ae being any particular obligation on our part and therefore, they should remain there to be drawn upon at ouch time aa they are needed in tbe Immediate future./" him that it was hie intention that hereafter not only Seeaxora out ell other case officers in the field be promptly and adequately serviced financially ln the currencies required for building operations and that the future use. green currency ehould bo die-continued as rapidly as possible for security reasons. He further stated thatas simply en initial investment and that It undoubtedly would not coverays of operations. j. C. King vas informed that C ad been Instructed to workinance prograa of thia nature with tne finance division in order to utilise their facilities now in existence for the procurement of funds now in. or in other countries for this operation. It was pointed out that currencies from this small countrj; oould not be expected to be readily available and we ehould therefore anticipate our requirements ac far as possible in advance and endeavor to haveon hand to meet same. jc seamed to concur and said he would get authorisation for such expenditures from DD/P, then informed JC that it waa his plan to include in the roport forreakdown of epeciflo tasks, indicating in each one the estimated funds required for development.

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approval of tbla over-all developmental plan would constitute approval for the disbursement of tho funds eo Indicated. It ves "belief that this would simplify future finance procedures and tbat iieaoquvtars would be fully informed of the allocation of the funds. It would alsoeans of budgeting the funds allocated to this project.

2. Comaunlcatlons, The subject aattar contained5 was reviewed withing. Bs aade no particular ocesasat on this except In the natter

pertaining- toor Tegucigalpa wherein he agreedhould request Leddy to initiate appropriate action soonest. It waa axeo agreed that thisas tbe most Important one and needed aoat urgently

in the field.

3* Official Cover. The pros and cone of establishing ths projectthoroughly reviowed end JC stated that ha didthiosuitable for reasons of travel, operation securityconvenience. Accord Ing that in view of

3 statement that be aloneee^nslble for tbe estsblisbauint of official cover under liaison procedures, that the letter be called upon to arrange for sane other corsmaent agency to rent. In its own naan, tbe speoe required for this Headquarters. JC agreed to thia ill proceed to negotiate wittf

u. Safe Houses. JC pointed out that he had discussed the matter of acquiring safe hone ea with the latter agreeoVwi*Pr'1Bx. f the Logistics Division whoake the neeeeeary arrangementb uu behalf of this project. JC agreed to epeaktcr d dear the way for _ uggested to negotiate eooiwei. iw these quarters.

that in view of the importance of external intelligence Ojwrat.ions into Ouatemala City and the general area that he would like toaccredited, or et least authorised tocfj required in order to supervise such operations aa wore based in tnat area. It was agreed that this would be done and Leddy would be requested to ascertain whether it would be necessary to officially accredit f well ea to other countries to provide proper cover, lt was suggeatw tnat perhaps such cover would not be noces-eary, lt could justormal function

It was ascertained "was presently in the Statea on ecommended that he be requested to come tofor lj days TDT in order to assist in ths assessmentJC agreed and said he would telephoned. Jto ask whether he couxq come In, and if so, he waa to report on the nooaay following Thanksgiving day.

7-The question was raleed as to whether or

was capaoie o! neetinp the requirements of PBSXCESS

agreod to give hia full trial and to provide him with close guidance ano

CA17

J would probablyairly

Important base of operations between met country

toBabanaecember to discuss tne matter further.

8. Transportation. In view of tbe foreseeable requlreaont forFe by air, JC advised that the agency ham an arrangement withcleared for Just auoh purposes. The name of the airline ls Further detslls on the latter wero to be

ascertainea uy

DECISIONS 1 As Indicated.

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