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. _sTMmARO Pomaa Wo. 64 > eerorel ‘Office Mernitandum « UNITED STATES GOVERNMENT MV we ' t To : WR. Lapp DATE: TIAL own FROM : C. He. CARS x O jf ALL INFORMATION cof i . SUBJECT: BASQUE INTZZLIGENCE ORGANIZATION HEREIN IS U4 AGLAS Eg. ADMINISTRATIVE Serwjce EXCEPT itd ; BACKGROUND: Reference is made to my memoranda of August 29, 1946 and September_3, 19. discussing the future relations with the Besque Intelligence Organization. (You wi recall that we have been using the Basques as informants in a number of South Amer: countries. You were advised that our Buenos Aires Office had requested authorizat: to discontinue the services of dhe Basque organization there, and to stop the mont! payment of two thousand dollars’ which has been made to the Basques in the past. I recommended that the services of the Basques be discontinued in Buenos Aires and t in other countries where they are being used, the Legal Attaches be instructed to reduce payments to them.) The New York SIS representative was instructed to advise Basque headquar in New York of the Bureau's action with the explanation that this step was necessa: in view of peacetime conditions and requirements and because our continued stay in South America is now on a temporary basis. Classified by DETATLS: . Declassity oa: | QADR We have now been informed by the New York SIS representa mai that he discussed this matter with iir. Antonio-frala, Secretary of the Basque organization wr. Irala stated he was very sorry to learn that the Bureau is curtailing its work in South America and requested that, should the Bureau find it necessary to discon entirely its relations with the Basque organization in countries other than Argent: he be given as long a period of notice as possible. He explained that he desired - natiee in order revent the disorganization of his intelligence service as it «. in South America Classified SOTET 28 agg? Reset PRO CONSE