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at ‘ ‘ \ . f cone Director, FBI Re: The Basque Organizati o& nie . prepared a statement which include the -saldrdes of four full-time investigators at 400 pesos monthiy, a chief investigator of the group at 600 pesos monthly, the expenses of maintaining a head- quarters office and the operations expenses of the org all of which totalled approximately 750 U. S. dollars. insisted that such payment would be necessary in order to continue the operations of organization which the Basques had maintained for the past year. . * The explanation and approach of JAUREGUI was that regard- less of what this office pays his organization, he is sincerely dis- posed to cooperate wholeheartedly and place the services of the Basque group at the demand of this office. He explained, however, that he has built up an investigative organization and in order to continue to function effectively he must continue to receive a sub-~ Stantial monthly allowance. Nevertheless he stated that he would . cooperate with this office to the fullest extent possible even if no payment whatsoever were received, but that in such case he would have to completely disband his investigative unit, meaning that the men previously used as inve gators would have to seek legitimate employment to earn a living Qe In view of the known value of the Basque cooperation with the Bureau on a hemispheric scale in general and the possible po- tential value to this office in particular, a liberal financial compromise was made vi thas thereby avoiding any argument or disappointment on his part and obtaining from the very outset his wholehearted enthusiasm and interest in working exclusively with this office. He was adyised that this office could not pay him the monthly sum of [7 A that ( monthly salaries totalling approximately ¥ @ pald to his ° group in the following allotment: 500 pesos each to enpxarei the chief of the group and 300 pesos each to the four ~time “_ vestigators, making a total of 2200 Mexican pesos monthly. was also advised that he would be paid all expenses of a head- quarters meeting place and other necessary expenses directly in- curred in connection with the work assigned. It is likely that the expenses of this group, when it reaches full-scale operations, will cond t i