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\ STANDARD FORM NO. 64 a ms “ | Office Memorandum + onitep states GOVERNMENT DATE: - Fi clesy mA September 255, 194€: oe TO : MR. LADD “Uf ALL INFORMATION coe! O ie . SUBJECT: BASQUE INTHZLIGENCE ORGANIZATION HEREIN IS USCLAS* 7. ADMINISTRATIVE Seryyo EXCEPT | 2 778° OE REISE : OTHERY ISL is BACKGROUND: Ki Reference is made to my memoranda of August 29, 1946 and September_3, 19. discussing the future relations with the Basave Intelligence Organization. ou wi) recall that we have been using the Bssques 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 the 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 Adres and t in other countries where<they are being used, the Legal Attaches be instructed te reduce payments to them.| The New York SIS representative was instructed to advise Basque headauar 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 DETAILS: 7 Declassify 02: OADR We have now been informed by the New York SIS representa ide ee e discussed this matter with iir. Antonig-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 - notices in order to yprevent the disorganization of his intelligence service as it «. in South America \ 8 | Classified