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' . q OFFICE OF THE LEGAL ATTACHE 5 CONFINFNTERE EM@Aay of THE UNITED STATES SANTIAGO CHILE duly 25, 1944. VIA DIPLOMATIC AYR COURIER POCUC: RE: BASQUE ORGANIZATION RATION CONTA! os Chile = Administrative” 1EF CLAS SIFILD Sir: HERE SHOWN | Sirs OTHER ise Reference is made to Bureau letter of May 3, 1944 with the above matter. in connection . vu . Lf I This is to advise that the writer has contacted (quae bv eas: has delivered the letter forwarded with the Bureau commnica- “tion of May 3. In connection with financial arrangements, the writer was advised that the organization in Chile had been receiving $400 per month, : forwarded by the Basque Government in exile, but that during recent months H | this has not been sent. That this money is no longer being sent is, no — | doubt, due to the change in financial arrangements which was mentioned in the Bureau letter. The writer advised that he was ready to continue the | financial aid but he would first like to have some idea as to expenditures eee { so that @ reasonable sum could be srrived at. said that he would, of course, be glad to receive any ancunt wrt eee tor mi ght think could be expended, but it was evident from hia manner that he would be disappointed if he were not to continue receiving the $400 monthly or - substantially that amount. It did not seem to the writer that the break- down as to expenditures of the organization in Chile showed a necessity for an amount that large considering that this money is reimbursement for ‘ actual expenses of the organization, However, in view of the Bureau's ‘ desires in this matter, it is felt that rather than cause any hard feeling , between the Basque leaders and this office, it would be well not to be too exacting in demanding an accounting. Accordingly, the writer intends “to reach an agreement calling for the expenditure of $400 or somewhat less per - month and the writer will endeavor to tactfully review the manner in which » this money ig peing spent toward the end of eliminating any unnecessary " expenditures \ expenditures, With régard to the usefulness of this organization ag informants, 1 p it should be stated that there is a fairly large Basque Colony in Chile and They can be used locally in connection with Communist matters and maritine matters, but it has been noted that their informtion is usually rather sketchy and not thorough. In their favor it mist be said that the Basques appear ta be sincere and their reports are not written for mercenary purposes. Wed by be O4E LIU? Declassify on; ‘OPTES DESTROYED RECORDED RAEN 2 19m) INDEXED 2 lte 4 4 aie = Son ron t ™