1 ' °04-10218-10035 j 2025 REL EASE UNDER THE PRESIDENT JOHN F KENNEDY ASSASSINATION RECORDS ACT OF 1992 i f ' I L · - l • - i ' PROJECT OUTLINE t 1 ' ' JA t r·· I Ii J CRYPTONYM _______ I' ' STATION CHIEF OF i l 11' it· i· t I i _ · i I I I ' I I i • ' iI l I I •I j- 'I I • CS COPY I t i -- _i I _ • • • - f • • r7 ' r h'M IJ - 3 3 S 3 ¼ - •i• ••• t ' • - ' '- - r - ir • _ • l • ' J j 14-00000 •' PROJECT OUTLINE 1 Identification - ' · Mexico City Mexico Support for singleton ·contract agent operating in to right-wing political milieu in Mexico for intelligence purposes with some covert action by-product Objectives I ' - a Objective The objective of this project is to provide support for a u s contract agent who has access to a wide variety of right-wing political elements and organizations in Mexico i I l I ' ·•i ·i · I j i f l I b Conduct of Project The contract agent LIHUFF 1 was born in Mexico and has had a long history of business experience in Latin America · as well as over the past fifteen years in Mexico At the present time be is Executive Director of U S Chamber of Commerce of Mexico City which gives him a great deal of mobility in both American and Mexican business circles Generally it is from the Mexican business community that the financing and support for right-wing political mo ements organizations and institutions eminate Given the general trend of recent Mexican· regimes as well as the present one toward more governmental regula tion and manipulation of the economic life of the country the Mexican businessmen continue to support right-wing political movements or ostensibly non-p-ofit civic research and other types of organiza-• tions used by them as front instrumentalities for expounding their philosophy and taking action in the politico-economic fields LIHUFF 1 has natural access through his present position and past extensive experience in the business community here Over·the years as a matter of fact hi numerous associations with these elements have earned hjm their trust and respect In addi tion cJ Pl f 'I_ the past four years he has funded Lie Agustin NAVARRO Vasquez LIHL FF J2 L organization consisting primarily of Insti tuto de Investigaciones t· 1 Sociales y Economicos A C IISE Espejo a magazine on -· politico-economic affairs and Movirniento Uni versi tario de - k_ · · Renovadora Orientacion MURO a student organization Also he f ·1 has handled LICHANT 1 who has a history of and numerous associa- tions in the Mexican right-wing political arena These and many i other contacts of this type will provide the basis for his reports ·1· • on this particular segment of the political spectrum in Mexico t i· c Targets Right-wing political elements an·d organizations · · in Mexico This would include not only Lie NAVARRO IISE Espejo and MURO but Hugo SALINAS Price Jorge SIEGRIST Clamont and numerous j• others of political significance on the Mexican scene In connection with LICHM T l's present 14-00000 i t ' ' i- ' ' ' ' _ _• ' position it shouJd be possible to obtain information on the Ministry of Education and other aspects of the Mexican --_ education system which according to the·last word received ' from Headquarters is somewha of a priority requirement d RMD This· project is responsive to Priority A3 Q and f of the Related Mission Directive· for Station Mexico Clty- approved October 1963 This priority reads in part obtain Information on the stability of the Government ••• through high-level penetrations and through surveillances and controlled assets of other powerful political groups such as the Frente Civico ••• and through continued development and influencing of high-level government contacts 11 As an ancillary measure the project could contribute to MHSPAWN objectives of the RMD under certain circumstances where use of right-wing platforms ano urganizations is merited Background a i I I l·- l 'I Developments Leading • o to Project l Mexico politically is a country in which Increasingly a centrist political concensus is developing based on the impact· of education and economic development On either side though of thts growing central political specti-um are extreme •left and extreme right wings which are quite active and quite vocal and which have an influence in ·the form of individuals organizations and movements greatly out of proportion to ·their numbers Political disturbances and efforts to ·induce iack of sta ility e inate in the main from these two extreme wings As the centrist force grows s Jowly it is possible and probab le that these two wings will _intensify their efforts and become more and more radical The Station has intelligence coverage·of the extreme leftwing but has neglected the equal Jy important extreme •rightwing when in the final analysis any threat to Mexican political stability by fomenting unrest and incidents does and will continue to eminate from the right-wing as well as · the left-wing Assuming that as indicated in the present RMD the long range national policy objectives of the U S toward Mexico are to encourage a stable democratic government and political environment then coverage of the right-wing is required if for no other reason than meeting normal Station responsibilities for political report'ing HBFINCH contacts in this area have been and probably will continue to be virtually nil In fact· at present in this area HBFINCH contacts are non-existent LIHUFF 1 was first picked up as a contact Station Mexico City in l95O'after having been a contract agent for Station Panama City for some three years while engaged in business in Panama He has been In a conti uing c - - r -- '' l t ·· ··ij t 14-00000 _ ' • • ·• l ' - _ •-- •••' I'- '•'- • - •4' - - ·- - • r· · ' ·t ·· ' · '' · • · relationship of one degree or another· with this Station ever since then This relationship developed from contact · into formal contract status in November 1962 LIHUFF 1 has handled Station conitacts _and acthdtks with LIHUFF 2 as wcfl' as LICHANT 1 from 1962 to date In add ft-lon· · ·he has done a good deal of reporting on right-wing activities from other sources and other contacts of his Subsidy of the LIHUFF acti ity for MHSPAWN purposes ··'·---· will be terminated effective 30 June 1965 Use of LICHANT 1 will be continued in an intelligence reporting capacity and in a limited way for covert action efforts b · Prior Negotiations There have been Q prio1· negotiations with the Mexican Government intelligence or security services or ODYOKE elements on this project LIHUFF 1 has been used in the past prior to his contract with KUBARK · as a source by ODIBEX and ODMARK c •• Relationship to Other Projects T_hls project has· lQ re lat ionsh i p to any otl er Stat ion project I d Utilization of Same Operational Assets _______ _ LIHUFF 1 has not beeriut i I ized I on any other project past or present except to the extentihe was involved with the LIHUFF activity Indicated· in subpar-agraph 32 2 above 4 I Operational Assets _··· a ' · i Personnel 1 LIHUFF 1 OA granted on 10 October 1962 with no number forwarded to field -- Subject was born in Mexico is fluent in Spanish and is about 49 years old Since World War II he has been in private business in Latin America first in Panama and then in Mexico from 1950 on During World War II he was in Army intelligence in China and therefore had an underitanding of covert operations prior to his KUBARK experience While in Panama he was employed by the Station there for several years to organize a net directed against a target of high priority interest This association was term inated by reason of his move to Mexico for business reasons Although he was in contact with this Station virtually from his time of arrival in Mexico he was not picked up as a contract agent until November 1962 His cover for his past and proposed activities has been natural that of a businessman with a conservative political outlook and interested in the econOfl'liC and political posture of· the - I '' iI J 14-00000 t I • • t 1 • • 1 t - • l t •1 i -s- · · i- ' i Mexican Government ContDct with him is cov ered by a social relationship between his case officer and_himself this is easily maintained gi ven the large American community in Mexico City He h -s had no formal in tel I igence training other than that he received from the Army during orl d War 11 and on the· job with KUBARK Control of Subject is no problem inasmuch as he is an American citizen and has had cons j derab le · experience with KUBARK by now His motivation is that of an attraction to this type of work being a U S citizen in a foreign area natural concern forhis business Interests and probably the compensatory return from KUBARK He is witting of his KUBARK association and aside from his World War I I intelligence experience with ODIBEX in 1961 he had an Intelligence relationship with ODIBEX which has long since been terminated · 2 LICHANT 1 OA granted on 22 April 1963 but no number forwarded to field -- Subject is a very conservative Mexican educator and intellectual about 49 years k of age He has alternated between workin in various '· capacities for the Government of Mexico and in Mexican · universities At the present' time he is Private_ Secy in Min of 1Ed · position lhich gives him unique access in the government to '·_ - · the general fields of educa tion and politics as well as ' · considerable contact with oth r influential peop1e in right· • wing circle9 He was recruited by LIHUFF 1 in August 1962 1 on the pretext· of doing research work and collecting information for LIHUFF 1 's general use for business purposes Subject has na ural cover for obtaining· information on right· - i w ng ac ivitie r m others du to his long asso 7 iation with -· '- j r1ght- •nng act1v1t1es as· a stuaent educator ano• government 'f f' '··· · servant Contact between Subject and LIHUFF 1 is maintained · i under the guise of private business relationship Subject has had D Q intelligence training from KUBARK other than that ' imparted by LIHUFF 1 in discussing his reports There has 1 ' j been no problems in control since essentially Subject under stands that t is ·1s ad bfusiness relationship with certain j'i _ - 1 requirements 1nvo 1ve or it to be sustained Subject's •· ' T --- -J motivation is that of an intellectually-convinced conservative ''f • J· who has common objectives and outlook with LIHUFF 1 on _ _ - ' political and economic matters plus the financial aspect of i · the LIHUFF 1 relationship Subject is not witting of KUBARK or ODYOKE interest in his activities and reporting He has no known contacts with other intelligence or security services past or present i-- i l i· ' f1 b Mechanisms There will be no mechanisms involved in this proiect althouqh LIHUFF 1 will continue to have access to Lie NAVARRO and in t r11 to IISE Espej and MYRO for intelligence purposes - 14-00000 f _ - --······· '-' · _ _ _ _ -- j • ' - -· ------1 ··- - -- -- - -· Security Eya1uatlon f 1 - ' 'j -- In the unlikely event of compromise LIHUFF 1 could contfoue to claim that he was not doing anything that· hundreds of other businessmen U S and Mexican aren't doing as nlraccepted·pract lcea trying to Influence the politico•· economic cl lmate In Mexico for their own benefit Whatever the extent of the compromise there would be·no repercussion Insofar as other operations or activities rut a were concerned except that there might be some tightening of the general operational climate for a while If somehow LIHUFF l's true role were disclosed he could probably be backstopped with a minimum of publicity through high-level Station contacts with the Government exp1a-lnlng the Station Interest In right-wing circles as attempting to follow what they were up to In case they became a threat to the stability of the present government 6 coordination No coordination Is desirable or required with other ODYOKE or PBPRIME elements with the Mexican government or with other governments and lnt ellfgence services • It Is assumed that norma·l coo rd I nat lon w I th var Ious e 1ements ·w I th In - •· KUBARK Headquarters will take place 1 costs a General It Is requested that this project be authorized · in the_ amount of $9 000 per annum effect1 e _ _1 _ _ __y_l y ____ J 965 • ·----------· - ---- ------ ------ - - - - - ' b DrfU kdQrlD f 21u c i oauml LIHUFF 1 salary 2 Operational Expenses 3 000 00 3 Entertainment and Travel 2 400 00 Total per annum f I I I I I I I $3 600 00 1 $9 ao·o oo No non-KUBARK funds will be Involved In bis activity I 14-00000 r·- '• r ' ti 1--- -1w I --••w 'r• •• - · l ' -· ----·• 1 1 l -7-c Foreign Currencv It Is anticipated ch ny forseeable foreign currency requirements will be within the Station's capacity to handle • d Corrpnltments No corm1ltments have been made to LIHUFF 1 other than a salary of $300 00 per month with a thirty day's notice on termination '' ' · e fy dfng and Accountabllltv __ Slnce this project will only lnvo ve salary for the most part no unusual · requirements are deemed necessary for accountabl I lty In the event that funds are passed for any type of special activity other than salary normal standards of accountablllty will be used · 8 i Ir Annexes a ·1 Administrative Pla'n or Fiscal Annex Not appl lcable· b Copmunlcatlons c Jechnfcal 5upport 1 r- 1 Not applicable i Not applicable I 9 d Logistics e- lrtel l lgence Not ap' pt lcable No'- ' appl lcable 1 Erne rgency Cond It tons L If an official anti-USA atmosphere of sufflcfent Intensity prevailed In Mexico LIHUFF 1 very probably would not be able to r alntaln hlmse-lf here par-tlcuJarly If his I ' ' l i I employment continued in his present capacity • This however Is not seen as anyth-ii g except a very remote· cont In· gency due to the Government of Mexico's dependence on the U S tour lst trade In a general war It Is probable that LIHUFF 1 1 would be able to continue In place without too much difficulty i and would be willing to continue operating on current objectlvel1 or to undertake ent I rely new operat Ions against new targets ' Contact and communications should represent few problems In • Mexico · ' 1 f f i - te ·h ' • if- J · ·f · -