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Pry —_ we De_lasarte is very sincere in his efforts to r stioning, particulariy since it appears that jt may be possibie that. finieaties yelations will_cease betusean Argentina and the United States. The tege Attache strongly recommends that we enter into this arrangement with De Lasarte because of the numerous arrests of informants which have ocey Sere tins 1 that our effics procure additional | reliable | informants, because of the possibility that relations vy be broken and the Basques can be, utilized to.procuye information in the bsence of | of cur representatives and get it out of Argentina through their om > @5, and because the Buenos Aires organization also,controls the Basque organization in Uruguay, Paraguay, Bolivia, and Chile. As will be recalled Inspector Gurnea stated that we had insufficient informants in Argentina, this of ecurse being due to the persecution by argentine gutherities which has occurred in the. past. [The State Derartment has sdviced us that we should make preparations for any Sventual:ties including war with Argentina. | It afpedrs therefore that the Bureau should go to ‘great ‘lengths to secure alditional competent informants immediately to take care of any con- tingency. It is most likely that tris need will continue over a long period in view of the unfriendly attitude of the Argentine Goverrment regardless of whether we actually break off relations with them. It is therefore believed that we should go along with the legal Attache at Jeast for a drial period in order to try to make full use of the Basques in Argentina. KOT ION There is attached a letter tc the Legal Attache advising it will be satisfactery te utilize the Basques as suggested and instructing that he kee in close touch with the situation and keep the Bureau advisedas to whether they are Producing satisfactcrily in view of the amount tc be paid to them. G Respectfully, Attachment Brose wks em DOAK UN Neratns WwW Sas Seal © ote DT 1-S-q ] aT