25. Memorandum for the Record1

SUBJECT

  • Central American Situation
1.
At 9 a.m. on 9 October 1952, a meeting was held in the office of the Director. Present were the Director, [initials not declassified], and K.
2.
The Director explained to [initials not declassified] that all plans for action were canceled. [initials not declassified] then pointed out the responsibilities we have towards the people who are already in the field and who have committed themselves, and the dangers to the entire Caribbean area of the decision reached yesterday. The Director replied that he was fully aware of the dangers inherent in such a decision, but that this Agency is merely an executive agency to carry out the policies of the Department of State and the Department of Defense, and if they instruct us not to engage in a certain operation, we shall not engage in that operation. [initials not declassified] then commented that the Department of State might very well change its position in the near future because of the explosive situation in the Caribbean. To this the Director agreed. K then stated that there had been developments since FW’s report last evening to the Director, and that it appeared we had [Page 37]received all the necessary clearances for the shipment of machinery from New Orleans in spite of the questions raised yesterday by State. K stated that he was not even suggesting action in violation of the position taken by State yesterday, but that this shipment could go out as planned except that it would be to a new consignee and to a secure place under our absolute control [less than 1 line of source text not declassified]. The General asked what place did K have in mind—was it our own? When the answer was in the affirmative, the Director telephoned DB2 and informed him that while we were not shipping the machinery to the country for which it was originally destined, apparently we had all the necessary clearances and would ship it to a place of our own [less than 1 line of source text not declassified]. Although DB expressed himself as surprised that we had such clearances, apparently no objection was interposed. The Director authorized K to proceed with this shipment to our place if it could be securely arranged and if it were true that necessary authorizations did exist.
3.
K and [initials not declassified] described the situation of RUFUS, with a number of men already mobilized, and the need of supplying RUFUS with cash at once for a liquidation action if we were not to be even more embarrassed with our Central American friends. The Director asked how much was needed. K replied $3,000 a week. The Director said he would go along for four weeks and would approve $15,000.
J.C. King3

CWH
  1. Source: Central Intelligence Agency, Job 79–01025A, Box 69, Folder 2. No classification marking.
  2. David Bruce.
  3. Printed from a copy that bears this typed signature.