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Re: BASQUE ORGANIZATION . 6/20/44 contemplated by referenced Bureau letter. iWothing definite ha been stated regarding the duration of the payments to be nade. XV Ayer ye Moreover, negotiations with DE LASARTE”on the basis of the fiction that in the last analysis, the funds used by DE LASART. have their origin with AGUIRRE in New York. It was not possible t determine whether-DE LASARTE actually believes this fiction to be a fact. However, the reasons given in Bureau letter of reference for relying on the fiction seem ample. At present, there seems no need to rely on the fiction. However, if our situation worsens very much and it becomes necessary to withdraw our representatives bere, it will be most convenient to be able to rely heavily on the Basques who will be much more likely to work if they feel they are working for AGUIRRE than if they suppose they are merely paid professionals, > office has not expressed-approval or disapproval. ‘ lw pr believed that this matter should be left undecided and each expansion dealt with as it comes up. This matter may serve to the edvantegcs of this office DE LASAPTE hes stated his belis? that advantage of this office, DE LASARTE has stated his belisf that the relationships involved will work out over tne course of time and that difficulties will not ensue. Since the agreement was made here on June &, the Basques have turned in some information exclusively for this office. General pluns have been made for setting up the Basques for most effective work and it is intended that as this relationship develo} more detailed plans will be made for the Basque set-up for perform intelligence work. DE LASARTE has seemed willing to aeecept all suggestions made and seems anxious to work them out to the best advantage of this office. Although individual Basque leaders have in the past been given confidential numbers, neither DE LASARTE nor the whole organization as presently headed by him has received such a number whe Basques as presently set up will be designated in the future a Yfoons idential inf a i There is being forwarded with this letter an envelope addressed to President AGUIRRE. It contains some copies of memoranda on information furnished to this office which DE LaSArTE asked be forwarded to AGUIRRE as of interest to the latter and als a vrivate lstter to the lattde\ concerning the arrangemeno ts made a private letter to the lattdéy) concerning the arrangements made for working with this office. The above information appearing in this letter has been set forth in detail in an effort to inform the Bureau as thoroughl: —_ a -4- ,