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ee 3 aa . ce Memorandum - onrrep STATES G To: MR. D. M. LADD TONFIDENT!® =~ pare: FROM : CG. He Cars . Classified fe fs Reece Declansly on: OAUB EE SUBJECT: QUE INTELLIGENCE) ORGANIZATION IN ARGENTINA? e / C {5 a ‘ @ av . yok Be " ‘Reference is made to my memorandum to you dated aug 29 iiss 6 9u6, entitled "Basque Intelligence Organization; Administrative it pointed out therein that our representative in Buenos Aires Lic had written the Bureau concerning the Basque Organization, whic! ei by our office there. He pointed out that we were paying the Basques #2 ,000 | monthly and that the present retuyfs from that group did not, in his opinion, warrant our continuing to pay large sum. He indicated that he had discussed this with Jose Marif/tterimsarte, the Head of the Basques in Argentina. arte said he realized that the volume of information submitted by his group had fallen off. This was due to the change hasis from coverage of Nazi + activities aa, that a new & arrangement be worked ou e ques New Yor! ty. Accordingly, the / oe referenced memorandum was prepared suggesting that we reduce our payments in Argentina to $1,000 per month. A letter was forwarded to our New York office suggesting that the matter be discussed with the Head of the Basque Organiza~ tion there and that the Bureau be advised of the latter's reactio. our decision to reduce the pay of our Basque informants in Argentina. & radiogram has now been received {ron EERE ott ing out that = S7C in view of the present situation and the lack of information which the Basque Service is submitting in Argentina, esting eB -to_ discontinue their services altogether. He asks if this would distur! le Bureau's relations with the —~- Basques in other South American countries.’ This new suggestion on the part o it we discontinue now the use-Of the Basques in the Argentine should given serious consideration in my opinion, We have always placed direct responsibility on our Legal Attaches in Latin America for the employment of all informants and their discharge when the returns received from them warrants $ euch action. Therefore, I think we should treat this particular situation in the same manner as we have thers and authorize our Buenos Aires office Miscontinue use.of the BasquesanThe attitude of the Basques in other Latin american countries is no longer a Yactor which we need consider in view of the ‘that we are definitely withdrawing from the 818 ry Fe “B3ii7-BYY | ES em on oe Vim 83 JAN 8 toes . a . 58 OCT 18! es Pa GEO Dowribentiat ” ns sal MATION CONTAINED ALL INFO 18, UNC EXCEPT WHERE S| HEREIW ! L/