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Re: BASQUE ORGANIZATION 6/20/44 There appear to be several reasons why this office should enter into the arrangement contemplated with the Basques here, In the first place, DE LASARTE himself is in charge of the Basque organization in Uruguay, Paraguay and Bolivia, and it is not belteved that the Bureau's. program of cooperation with them Bureau ogram peration with them in those countries would progress far if negotiations with regard to thie country first failed. It is noted likewise that he is to make a trip to Chile to assist in arrangements there. Aside from this, it is thought that in other countries of Latin America where the Bureau is to work with Basques, relations might be impaired once it became known that the attempt in Argentina was unsuccessful. Secondly, there is the consideration that Argentina hes a totalitarian government at present which gives no indication of weakening and which may be of greater concern to the United Stat in the future than at present. #ith this in mind, it is believed that a development of the Basques, counting several hundred thousand potential members in this country, should be made in such a way that activity might be carried on even though Argentine- United States relations were broken. Thirdly, there is the fact that, as the Bureau hes been informed, numerous arrests of informa: of this office have occurred and more may take place in the future in this uation the acquiring of additional informants seems sivioabiele In view of the latter considerations, DE LASARTE was informed on June 8 that this office was agreeable to entering into the arrangement as stipulated and at ¥2,000 (U.S. currency) per Month. On that date, toe first payment was made, $1,000, and it was agreed that monthly payments would be considered as starting as of that date. No attempt was ever made to’ bargain with DE LASAi as to the amount to be paid for the following reasons: it is believed that the latter was sincere in arriving at the sum named as the amount needed and if a lesser sum were given the reliationsh: between DE LASARTE and this office would not be the kind contemplat by those who arrived at the agreement in the United States, nor 1 it be one which could be exploited to the Bureau's advantage as “8 ad