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AGENCY: ARMY RECORD NUMBER: 198-10007-10021 RECORD SERIES : CALIFANO PAPERS AGENCY FILE NUMBER:

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ORIGINATOR: ICCA FROM: CHMN, SUBCMMT ON CUBAN SUBVERSION TO: MEMBER OF THE SUBCOMMITTEE TITLE: REPORT FOR JULY-AUGUST ON ACTIONS TAKEN TO COMBAT CASTRO-COMMUNIST SUBVERSION DATE: 09/30/1963 PAGES: 23 SUBJECTS: ENHANCEMENT OF INTELLIGENCE ON CUBAN SUBVERSION STRENGTHENING OF COUNTER-INSURGENCY CAPABILITIES CONTROL OF TRAVEL TO AND FROM CUBA CONTROL OF TRANSFER OF FUNDS SURVEILLANCE OF CUBAN DIPLOMATIC, COMMERCIAL AND CULTURAL MISSIONS CONTROL OF CLANDESTINE MOVEMENT OF GUERILLAS AND ARMS CONTROL OF MOVEMENT OF CUBAN PROPAGANDA DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT CLASSIFICATION: Secret RESTRICTIONS: 1B; 4 CURRENT STATUS: Redact DATE OF LAST REVIEW: 04/08/1998 OPENING CRITERIA : COMMENTS: Califano Papers, Box 2, Folder 26. Memo from Chairman, Subcommittee on Cuban Subversion to the members of the Committee re: Report for July-August on Actions Taken to Combat Castro-Communist Subversion.

JFK RevieJ Department of the Army EO 13526 Declassify Exclude Exempt Authority Refer To Review Date 10 8/12/2015 BY KES

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File September 30, 1963 TO: FROM: Members of Subcommittee on Castro-Communist Subversion.

Chairman, Subcommittee on Cuban Subversion SUBJECT: Report for July August on Actions Taken to Combat Castro-Communist Subversion.

Attached is a draft of the Subcommittee's report for July and August on actions taken to counteract Castro- commumist subversion in the hemisphere. The draft has been prepared on the basis of the material which you furnished with certain modification. The CIA members will note that I have extracted from his submission the items of action taken and placed these in the body of the report. The intelligence information contained in the submission I have made into an annex. I think it is very useful to have the intelligence data form part of the report, and request that in the future the CIA member prepare his submisaion in two parts.

May I have your comments on the draft by close of business October 1, 1963.

Copies to: CIA - Mr. Wheeler (2) DOD - Col. Haig (2) #6, #7 USIA Mr. Wagley (1) RAR - Mr. Hart (1) Justice - Mr. Geogheghan (1)

20763 W/R Called Bob Fittstrad advised de - stopped of J-3-Our Staff вид GROUP 1 Excluded from automatic downgrading and declassification ARA: WGBowdler:jg 9/30/63

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DRAFT SECRET 6 of 9 copies 1. Control of Travel to and from Cuba Central Intelligence Agency GROUP 1 Excluded from automatio downgrading and declassificatio a. Developed highly useful information on frequency of Cuban "chartered" flights to Brazil, names and nationalities of passengers and crew, and laz measures of control followed by Brazilian authorities. Transmitted this information to sation chiefs in the Latin American countries of the non- Brazilians travelling on these flights.

b. Maintained close watch over travel to and from Cuba. See Annex B for table of known travel of Latin Americans during July and August.

c. As a result of information furnished by him by the CIA Station in Buenos Aires and with the Station's urging, the Argentine Minister of Interior indicated that he would make every effort to prevent Argentine delegates from attending the International Union of Architects Congress in Havana.

d. At the urging of the CIA Station and the Embassy the Bolivien Minister of Interior issued in mid-July an order prohibiting the granting of travel permits to Cuba on other bloc countries to Bolivian nationals. C NW 50955 DocId: 32424014 Page 3

SECRET e. Partly as a result of the efforts of the CIA etation in Santiago, the Covernment of Chile prohibited the entry into Chile of organizers of the Cuban sponsored Second Latin American Youth Congress, which had been scheduled to take place in Santiago in August. This was one of the factors which led to postponement of theCongress.

f. After considerable prodding by the CIA Station and the Embassy the Minister of Public Security of Costa Rica presented legislative proposals to the Costa Rican Assembly which will require all persons intending to travel to Communist countries to have their travel approved by a newly created Costa Rican security agency.

g. CIA Station in Mexico City developed information concerning the clandestine arrival of passengers in Vera Cruz on Cuban merchant ships. Efforts are being made to obtain more information and to encourage stricter controls by the Nexican authorities.

Department of State e. Instructed Embassy Conakry to try to persuade Guinean authorities to deny use of airport facilities by flights on Habana-Moscoŭ route. These efforts achieved a temporary withholding of permission for future regular flights, at least NW 50955 DocId: 32424014 Page 4

SECRET until such time as the Soviets develop their own refueling facilities at Conakry.

b. Instructed Embassy Rio to approach Brazilian authorities to express cur deep concern at the growing frequency of Cuban non-scheduled flights to Brazil and request their cooperation in curbing them. Also instructed our Embassies in several Latin American countries to work with CIA station chiefs in furnishing the names of nationals of those countries travelling on these flights to local authorities and urging than: (1) to institute tighter controls on their own citizens travelling to Cuba, and (2) to express their concern to the AN GOVERNMENT Brazil over Cuban use of Brazil as a way station for transporting subversives.

c. As a result of representations made to the British government about Cuban flights to the Cayman Islands carrying Latin American subversives, the British developed an administrative scheme which will effectively prohibit the use of British Caribbean dependencies by Cubana as transit points for passengers. The British intend to require transit visas of passengers passing through their areas, and to reject applications for such visas except in certain special cases. Persons not possessing visas would be prevented from leaving their aircraft, or would be NW 50955 DocId: 32424014 Page 5

SECRET returned to their point of origin.

  1. Instructed Embassy Mexico City on August 29 to inform the Mexican airline CMA that the United States is opposed to a proposal that CA operate charter flights to carry refugees from Havana to Central America, CA, as a result, stated that they had no intention of proceeding further with this project.

Instructed U.8. Missions in Curacao and the Ha qua to investigate a report that KIM was planning to renew sh scheduled Curacao-Habana flights and to reiterate US opposition to resumption of air service to Cuba. KIM assured our Embassy that there is no plan to initiate service, scheduled or non- scheduled, to Habana,

f. Instructed Embassy Ottawa to express our strong objections to a proposal that a Cubans charter flight pick up e second group of U.S. students in Montreal to fly then to Cuba. The flight was not authorized.

g. Instructed Consulate Georgetown to investigate Cubana approaches to secure flight facilities. Mission reported on August 1 that the Governor had no knowledge of any talks between the B.G. Ministry of Communications and the Cuban Govern- ment regarding landing rights for Cubana planes. The Covernor NW 50955 DocId: 32424014 Page 6

SECRET indicated his intention to inquire further and to keep us advised. London reported that neither the Cuben nor the British Cuiana Govermente had raised the issue of landing rights with H.M.G.

h. Urged the governments of Mexico, Canada, Jamaica and the Netherlands to refuse to assist the Cuban government in its efforts to find a short route for returns the 50 American students who illegally travelled to Cuba. Also informed Pan American Airways that we were opposed to a Cuban request for a PAA charter flight to fly the students from Esbana to New York.

  1. Instructed our missions et Port of Spain and Barbados on several occasions to approach these governments to express the concern of the U.S. at indications of Cuban interest in the use of their aviation facilities.

Embassy Foxt of Spain discussed with the Foreign Secretary of Trinidad various legal moves available that would enable GOTT to control movements of aircraft within their territory, citing examples of such controle instituted by Mexico, Canada and Ireland. He indicated receptiveness to the proposal theat the list of suggestions be made available to the aviation officials concerned,

J. During a previous reporting period Embassy Santiago NW 50955 DocId: 32424014 Page 7 C

urged the government of Chile to refuse visas to Cuban delegatës to a preparatory meeting planning for the II Latin American Youth Congress scheduled for August in the Chilean capital. Inability of Cuban delegates to obtain Chilean vises for this meeting is one of the contributing factors to the Cuban sponsors announcing during August that the meeting had been postponed.

k. Sent general instructions to our missions in countries which participate in the International Union of Architects asking them to urge the cooperation of govermental authorities in preventing or discouraging the attendance of their citizens to the VII UIA Congress in Habana, September 29-October 4, 1963. Followed this up with instructions to individual posts to try where feasible to dissuade architects from free world countries from serving on the jury for the selection of a Bay of Pige momment.

  1. Urged Canadian Government to block a plan to commence food parcel shipments to Cuba, on a Comercial basis, that would have required the establishment of scheduled weekly charter flights by Canadian planes. C NW 50955 DocId:32424014 Page 8 SECRET

SECRET 2. Control of Movement of Cuban Proparanda Central Intelligence Agency Responding to the urging of the CIA Station police of the State of Guanabara seized large quantities of propa- ganda brought into Brazil by passengers on the special Cubana flights. For example, some 50 pounds of printed propaganda vas taken from the various passengers who arrived on the 16 August Cubane flight.

  1. Control of Clandestine Movement of Guerrillas and Arms Department of Defense a. Continued surveillance of the area surrounding Cuba during the month of July at the same rate and with the same cuphasis as prior to 1 July 1963.

b. Continued to maintain U.S. Forces, primarily from within the Atlantic Command, available to assist other Caribbean governments in the interception of suspicious craft in territorial waters, as might be requested. No such requests were received from any other government during the period covered by this report. However, U.S. Forces did keep track of the location of the Soviet merchant freighter MITCHURINSK, which NW 50955 DocId: 32424014 Page 9 ひ

was suspected of carrying subversives and arms from Cuba to British Guiana in mid-July. MITCHURINSK was under U.8. surveillance from its departure from Havana until United Kingdom forces assumed the task of keeping this ship under surveillance upon its approach to Georgetown, British Guiana. Subsequently, British police search of MITCHURINSK in British Guiane waters revealed nothing of a suspicious nature.

Central Intelligence Agency At the repeated urging of the CIA Station in Lima the Peruvian Government late in August published a new anti- terrorists lav providing a penalty of no less than five years imprisonment for persons who particiate in guerrilla activities or in the illegal manufacture of weapons or explosives.

The Peruvian National Intelligence Service is working on a lead furnished by the CIA Station in Lims concerning a 00 ton vessel reportedly involved in arms traffic.

Department of State Instructed our Consulate General in Georgetown to investigate reports that commercial cargoes (which could conceal illicit arms traffic out of Cuba) had developed between British Quiane and Cuba. Investigations to date have been negative. SECRET NW 50955 DocId: 32424014 Page 10 C

SECRET 4. Control of Transfer of Funds Department of State Cooperated with the Foreign Assats Control Office of the Treasury Department in developing blocking controle with respect to Cuba which went into effect on July 9, 1963.

  1. Strengthening of Counter-Insurgency Capabilities Department of Defence a. Continued the installation of military communica tions facilities in Latin America. Operational dates for the multi-channel radio stations to be installed in Managua, Nicaragua aud Tegucigalpa, Honduras have been delayed to 15 October 1963 and 15 December 1963, respectively because of new engineering and contractual requirements. Negotiations are continuing with Colombia and Ecuador for installation of U.S. military radio facilities. Completion of a new commercial trans isthmian cable in the Panama Canal Zone within the coming month is expected to improve military communications within the United States and the Commander-in-Chief, U.S. Southern Command.

b. Continued the surveillance of Cuba by U.S. Forces, reporting as before to U.S. commanders, organisations and agenetes. SECRET NW 50955 DocId: 32424014 Page 11

SECRET Reports of surveillance have been disseminated to all who have a requirement to know.

c. Established a 24 hour per day, 7 days per week duty watch at the U.S. Military Groups in the Caribbean countries in conjunction with implementation of the military alerting system. Continued efforts to staff the U.S. Southern Command Intelligence Center with properly cleared, trained personnel (this center is the military focal point for relaying information concerning the movement of subversives). Filled, partially, the authorized billets in the U.S. Southern Command Intelligence Center and took under consideration the problem of an increase in the billet structure in the Center. The Cormander-in-Chief, U.S. Southern Command together with his intelligence officer visited Honduras and Nicaragua and determined that no significant problems existed which would interfere with effective operations in those countries.

d. Action previously initiated by the Comander, U.S. Naval Forces, Southern Command (COMUSNAVSO) to establish a Small Craft Inspection and Training Team (SCIATT) as a contribution to the Caribbean Surveillance System is progressing satisfactorily. SECRET Ç NW 50955 DocId: 32424014 Page 12

SECRET : Permanent assignment of U.S. Coast Guard personnel to SCIATT in the Canal Zone has been approved and the U.S. Coast Guard has taken appropriate implementing actions.

e. During the period of this report, the SCIATT con- ducted an on-the-job training course at Puntarenas, Costa Rice. Training was given to 13 members of the Guardia Civil of Costa Rica who were either newly assigned to the 40 foot Coast Guard utility boats (CCUBs) or were to be assigned as replacement crew members.

f. A quarterly inspection and evaluation of the CGUBS provided other Central American countries was conducted during the period 17 to 31 August by a mobile training tean (MFT) made up of SCIATT personnel. : g. Continued efforts to improve the internal security of Latin American armies through the provision of Intelligence Advisors. Presently there are such advisors assigned to 14 Latin countries, emphasizing counterintelligence and counter- subversion.

h. During the reporting period MTIs conducted training in counterinsurgency for the armed forces of Colombia, Bolivie, Venezuela, Feru and El Salvador. SECRET NW 50955 DocId: 32424014 Page 13 C

SECRET 1. Civic Action MITs were sent to Guatemala, Bolivia, Colombia, El Salvador, Jamaica and Ecuador.

  1. Exchange of Intelligence on Cuban Subversion Central Intelligence Agency CIA Stations throughout Latin America continued in a great majority of countries to furnish to the local internal security organizations with whom they are in liaison informa- tion concerning travelers to and from Cuba, as well as such information as came to CIA's attention concerning the movement of funds, arme and propagenda material. In meny instances, the furnishing of information to the internal security service by the CIA Station was paralleled by the furnishing of similar information to the foreign office by the Ambassador or his representative. The response to this information has varied greatly. The Central American countries, in general, began to pay attention to the information and take action on it. At the during the reporting period other extreme, the Brasilien Government/showed little inclination to follow up on the information.

Department of State a. Reiterated to the Foreign Minister of Peru oar interest in having the facts of the Puerto Maldonado incident NW 50955 DocId: 32424014 Page 14 C

SECRET brought to the attention of the OAS, and urged that this action be taken as soon es possible.

b. Urged the Government of Guatemala to submit evidence of communist activity to the OAS.

  1. Surveillance of Cuban Diplomatic, Commerical and Cultural Missions. Central Intelligency Agency (To che filled in by M. Wheeln) NW 50955 DocId: 32424014 Page 15

SECRET Department of State Instructed Embassy La Paz to follow up closely on charges of involvement of Cuban mission in internal politics of Bolivia, and, at the Embassy's discretion, to point out to Bolivien officials the opportunity for a possible break in relations with Cuba. Embassy La Paz was not able to press for a break when the evidence of Cuban intervention did not prove to be as conclusive as originally reported.

  1. Other Special Actions Department of State a. Obtained action by the COAS on July 3 on the Lavalle Committee Report transmitting the document to the governments and urging them to implement the specific and general recom- mendations contained therein as soon as possible. کا b. Through Embassy Managua informed the Nicaraguan Covernment of the matters which we wanted to have considered during the informal meeting of the Ministers of Security and Interior of the Isthmian countries held in Managua, August 26-28 in preparation for the second formal meeting of the Managua Security Conference countries later this year. C NW 50955 DocId: 32424014 Page 16 SECRET

SECRET -15- c. Reassured President Schick of Nicaragua in the most emphatic terms that the Nuclear Test Dan Treaty did not mean that our attitude toward Castro has altered in the slightest, and stressed our interest in seeing steady progress by all the Isthmian countries in implementing the recomenda- tions of the Managua Security Conference to block Cuban subversive efforts.

d. Explained in detail the nature of the Cuban threat and the related policy objectives of the U.S., during conversa- tion in London and in Washington with Mr. Aden Watson, newly appointed British Ambassador to Cube.

United States Information Agency a. The Agency's press service during the reporting period transmitted 12 articles, commentaries, and backgrounders on its wireless file service to USIA posts throughout Latin America for placement in the local newspapers and the Voice of America Spanish broadcasts to Latin America cerried a total of 28 commentaries and features on the subject of Cuban-based subversion in addition to the regular reporting of developments in the hourly newscasts. C NW 50955 DocId: 32424014 Page 17 SECRET

b. In response to standing Agency instructions to give special attention to developments related to Cuba-based subversion, USIS posts in Latin America were prompt in reporting incidents and in providing editorial comments from the Latin American preso, all of which was used in the Agency's radio and press output.

The main developments trested in the Agency's radio and press coverage included Castro's July 26 speech urging revolu- tions in Latin America, the discovery of terrorist weapons factories in Guayaquil, the Ecuadoréan Vice President's accusion of Cuben responsibility for terrorion, the statement by State Department Press Officer Richard Phillips that "potential subversive agents" from Cuba to the Caribbean area were passing through Gran Cayman, the expulsion of a Bolivian youth leader for receiving funds from Cuba, Castro-trained terrorists in Honduras,/Bolivian protests against meddling by the Cuban Embassy in the miner's strike. A Voice of America roving reporter in Latin America provided several reports aiztunztes on the end subversion picture in countries he visited.

In support of the Agency's effort on Cuban-based subversion, the publications center in Mexico began work on NW 50955 DocId: 32424014 Page 18 SECRET

SECRET -17- three pamphlets during the period based on Castro's report of his visit to the Soviet Union (showing that he contradicted himself in some of his avagant claims of Soviet progress), the losses suffered by Cuban labor under Castro, and the fate of political prisoners in Cuba. When completed, these pamphlets vill be reproduced and distributed in quantity throughout the area. NW 50955 DocId: 32424014 Page 19 ひ

GROUP 1 Excluded from automati downgrading and declassification SECRET ANNEX A CIA Intelligence Annex Travel to and from Cuba Brazil Chartered Cubana Airlines flights between Cuba and Brazil have become a major means of transporting non-Cuban Latin Americans to and from Cuba. The five such flights since late July have carried nearly 400 non-Cubans.

The first of the recent series -- on 25 July -- brought 71 Latin American passengers to Havana for the 26 July celebra- tions. The other four flights -- on 15, 22, 28 and 29 August - transported over 200 Latin Americans to Brazil from Havana. Some of the aircraft involved returned to Cuba with smaller numbers of passengers. Many of the 200 Latin American passengers had been delegates to the 26 July ceremonies, but others had apparently been in Cuba for longer periods and some had probably received training there. Of the passengers on these four flights to Brazil, 75 were natives of Caribbean area countries. Their circuitous travel through Brazil was evidently designed to help conceal the fact that they had been in Cube. Costa Rica Two Costa Ricans were among the passengers on a chartered Cubana plane which was turned back to Havana at Grand Cayman on 11 July 1963. One was Luz Marina Hernandez Salazar, the only Costa Rican woman known to have been sent to Cuba for training as a guerrilla varfere instructor. She had been in Cuba since September 1962. The other Costa Rican passenger was Carlos Guillen, former head of the Costa Rican Society of Friends of the Cuban Revolution, who had been in Cuba since November 1962. Ecuador The CIA Station in Quito reports that the military junte, which assumed power in Ecuador on 11 July, can be expected SECRET NW 50955 DocId: 32424014 Page 20 C

SECRET to follow the guidance of the Embassy and the Station in controlling travel to and from Cuba and the Soviet bloc, The activities of Cuban subversives in Ecuador, at least for the present, have been greatly inhibited by the nass arrests of Communists and pro-Cubans and by the outlawing of the Communist Party by the junta.

Honduras It is reported that the Honduran Communist Party has issued orders to its members not to attempt to travel to Cuba at the present time. This action is apparently the result of the increasing vigilance of the Honduran government and the greater implementation of stricter travel controls.

  1. Movement of Cuban Propaganda Guatemala According to an unconfirmed report received in July, a Bureau of Information of the Communist Party of Guatemala is being formed in collaboration with Prensa Latina and is to be managed clandestinely. It expects to receive news by shortwave radio from Cuba and print bulletins for distribution by radio stations. This may indicate a pattern by which Prensa Latina will attempt to distribute on a more clandestine basis in other areas in Latin Americe.

Honduras It was reliably reported that in mid-July 1963, a small coastal freighter landed 14 large boxes of Communist propagande on the northern coast of Honduras, Hondur the boxes having been transferred at sea from a larger vessel.

  1. Movement of Guerrillas and Arus Argentina Extremist members of the Peronist Party, apparently under the leadership of such figures as Hector Villalon and John William Cooke, are apparently receiving encouragement and promises of large suns of money from Cuba in support of their efforts to train and organize subversive groups in Argentina. C NW 50955 DocId:32424014 Page 21

SECRET Villalon has stated that his plan calls for expanding and accellerating subversive sctivities in Argentine culminating in a complete take over within two years. There is no indica- tion that Peron himself has agreed to this plan. It has been reported that leaders of the Communist Party of Argentina have been greatly annoyed by the tendency of the Castro regime to support the revolutionary Peronists without having consulted the Communist Party of Argentina. : It is reported that the so-called Army of National Liberation (ANL) of Argentina, which is a relatively small Castroist organization directed from Cuba by John William Cooke, bas in recent weeks been negotiating for the purchase of arms and has been offered submachine guns, bazookas and other weapons by two or three private suppliers. It was reported, however, that the ANL was having difficulty getting enough dollars from Cuba to make significant purchases possible. Bolivia The Bolivian Ministry of Foreiga Relations on 23 August protested formally to the Cuban Chargé d'Affaires in La Paz against the Cuban Embassy support to the miners during the recent crisis. Subsequently, however, Foreign Minister Fellman informed the Cuban Charge that he need not fear that the Government of Bolivia would break diplomatic relations with Cuba. There has, in fact, been no hard information linking the Cuban Embassy with the present mining crisis in spite of some unconfixmad reports of Cuban support.

Brazil Cuban Ambassador to Brazil, Raul Roa Kouri, is reported to have attempted to encourage peasant league leader Francisco Julieo to revitalize the leagues in northern Brazil. According to some reports efforts are being made to unify the leadership and bring dissident elements under the general direction of Juliso. Other reports indicate that, although the Cuban Embassy is providing guidance and possibly financial support to the movement, it had not yet resolved the internal dissension in the leagues. Colombia NW 50955 DocId: 32424014 Page 22 C SECRET

SECRET Colombia From Colombia reports have been received of increasing Cuban assistance, primarily in the form of training courses by instructors who have been trained in Cuba, to the Worker-Student- Peasant Movement (MOEC). A small guerrilla band encountered by the Colombian army in July 1963 was broken up when five members of the band were killed and two others captured. A small quantity of arms and a considerable amount of books and pamphlets on revolutionary warfare, photographs of Fidel Castro, Camilo Cienfuegos and Mao Tse-tung, and bulletins of the MOEC were found at the camp site. Recent reports have indicated an increase in the terrorist efforts of the MOEC and increased promises of assistance from Che Guevara with regard to the training of additional MOEC members. Costa Rica In mid-July an increased number of guerrillas were reportedly being trained in Costa Rica by Adolfo Garcia Barberena, well-known Nicaraguan revolutionary leader and member of the FLN (National Liberation Front -- a Communist-dominated, Cuban- supported, anti-Nicaragua revolutionary group). In early August, Alberto Serrato, leader of the FLN in Costa Rica, left with a group of Nicaraguans for the Costa Rican-Nicaraguan border. The purchase of arms and supplies and the recruitment of Nicaraguans for a movement against Nicaragua are also reportedly undervay in Costa Rica,

Hector Bogantes Zamora, Costa Rican agitator, left San Jose in mid-August for the Nicaraguan border to supervise the passage of Nicaraguan guerrillas fron Costa Rica into Nicaragua. Bogentes, who recently returned from attending the May Day celebrations in Cuba, was assigned this responsibility by the Costa Rican Communist Party.

Hondures The Honduran azmed forces began to move against a group of pro-Castro guerrillas operating against the Nicaraguan Govern- ment and active in the vicinity of the Nicaraguan-Honduran border. The Nicaraguan National Guard has been conducting opérations on its side of the border against the insurgents since July. The dense jungle and difficult terrain, however, will impede the efforts of both forces to eliminate the guerrillas. ( C NW 50955 DocId: 32424014 Page 23

SECRET Information on the guerrilla force is scanty and conflicting. It is apparently composed of members of the National Liberation Front (FLN), a Commmmist-dominated and Cuban-supported revolutionary organization active primarily in Honduras and Nicaragua since the fall of 1962. The strength of the force is not knorm. Nicaragua A captured guerrilla of the FLN (National Liberation Front - a Comunist-dominated, Cuban-supported, anti-Nicaraguan group) confessed that he was a member of a group of 46 who entered Nicaragua from Honduras on 22 July. He said that their mission was to establish a base camp in the Isabella mountains, Department of Jinotega, in order to indoctrainate the peasante and to train them in guerrilla tactics. He admitted that he hed received six months guerrilla warfare training in Cüba and that other FLN leaders had received similar training. He also said that the FLN training camp in Honduras was near El Lagarto, on the Patuca River.

  1. Trenefer of Funds British Culana Gulana, Guiana Import-Export Corporation (Gimpex) received a one In British Guaniolent deposited million by the Cuban Alimpex Corporation for goods to be delivered to Cuba in the future. Gimpex has, in turn, loaned this money to the Government of British Guiana. Cheddi Jagan's People's Progressive Party is the major stockholder in Gimpex. Mohammed Kassim, Manager of Gimpen, has indicated that Gimpex will be able to secure additional loans from Cuba in amounts sufficient to tide the Jagan government over any foreseeable crisis. It was also reported that Cimpex plans to buy aircraft, spare parts and other machinery in the United States for reshipment to Cuba.

General Reports continue to be received from many places indicating that the suitcase full of currency is still one of the most common methods used by the Cubans for transmitting funds for use in supporting subversive activities throughout the hemisphere. Instances where such funds have been confiscated by the police have occurred recently in El Salvador, Panama and Ecuador. C NW 50955 DocId: 32424014 Page 24