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De_lasarte is very sincere in his efforts to get the organization functioning, particulariy since it appears that it may be possible that. diplomatic relations willcease betnsen Argentina and the United States. The Legal Attache strongly recommends that. we enter. into. this arrangement with De Lasarte be numerous arrests of informants which have ce! pssent. procure additional reliable informants, because of the possibility th relations yy be broken and the Basques can bs utilized to.procure_information in the bsence of our representatives and get it out of Argentina through their_owm .e5, and because the Buenos Aires organization aan the Basque ffici organization in Uruguay, Paraguay, Bolivia, and Chile. As will be recalled Inspector Gurnea stated that we had insufficient informants in Argentina, this of course being due to the persecution by argentine therities whic! has. occurred in the. past. The State Derartment has sdviced us neat Wg__should ‘make preparations for any éventual:ties including war with “Ie afpears therefore’ that the Bureau should go to ‘great lengths tone secure aiditicnal 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 least for a jal period in order'to try to make full use of the Basques in Argentina. ACTION There is attached a ietter tc the Legal Attache advising it will be satisfactery tc utilize the Basques as suggested and instructing that he kee; in close touch with the situation and keer the Bureau advisedas to whether they are producing satisfactcrily in view of the amount tc be paid to them. @ Sek Respectfully, Attachment AAD