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= OFFICE OF THE LEGAL artacue CONFINENTERE EMBARSY OF THE UNITED STATES + SANTIAGO GHILE July 25, 1944. VIA DIFLOMATIC ATR COURIER POUC! Director, FBI RE: BASQUE ORGANIZATION vaTioN CONTA! SS ALL INFQRMATION € Chile ~ Administrative REPENS WY CECLASSIFICD EXCEPT bear Sirs HERE SHOWN Vear wis ay Aa Reference is made to Bureau letter of May 3, 1944 in connection with the above matter. ; This is to advise that the writer has contacted Si lV ees: has delivered the letter forwarded with the Bureau commnica- on 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 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 Pe so that a reasonable sum could be srrived at, eseaid that hea would, of course, be glad to receive any amount hte e ee ter ma 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- =4 down as to expenditures of the organization in Chile showed a necessity for | an amount that large considering that this money is reimbursement for 1 ’ 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 for ¥ _, between the Basque leaders and this office, it would be well not to be too 4 ae ot exacting in demanding an accounting. Accordingly, the writer intends: "ta a Vays 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 -- used IlOCaITy in connection with Communist matters 4nd maritime matters, but it has been noted that their information is usually rather sketchy and not thorough. In their favor it must be said that the Basques appear to, be mal “ yi yuo this money ig peing spent toward the end of eliminating any unnecessary ~~. od 7% . ls ar eayvnandat tured r F.- | Me Vee 4 oh pe ws we he @ af TP With régard to the usefulness of this organization ag informants, D it should be stated that there is a fairly large Basque Colony in Chile and | 1 They can be sincere and their reports are not written for mercenary purposes. _ A / ith , s ‘4 1 Cinsaled by b Ott 237 Declassify on "OPTES DESTROVED | RECORDED & 32 ‘AUC 30, ) RR DONOV 2 19b, INDEXED a ate yw . hi