Secret REL Ger ( .J .. ~, . ,. SECRET/RELEASE 2 fEB TO GEHMANY. ONLY 56 FJUJLI.:. '.:3228 (IN 18903) PAGE: 2 KUBARK WILL ALSO NOT e£ REIMSU~D. NET RESULT WILL BE UPGROWTH ASSlJ.tlNG · MAJOR Y INANCIAL BURDEN fOR FEB AND. MARCH. .; WILL, CABlE DETAILS lfi:N WORKED WT., I ! ': eE ABLE GIVE F'RAN AND DIR CLEA~ STATEMENT 3. ESTIMATE 'WE WILL BE BY 15 FEB I " rlN/.HCIAL SITUATION REMINDER CURREMT QUARTER E~NG 31 MAR AND REQUIREMENTS. roa .§,(?'~ FUM> ING t:,OURTH QUMTERs Af() ALL Of fY ~ 19lil. 0 ;· -,. 4. - . EXAMINATION OF' P.ROBlEM. Ii" . . . ADVISED WENDT Of ZIPPER STAF"f \oJE WULO CONTINUE RUN -AND • • • • AND P~Y COSTS AT LEAST. UHTlL 1 APR 5. . 56 TO.PROVIDC,.'MORE ·I :i "' I 1' ·I LE'ISURELY 11 i ' ·, "I ANTICIPATE-WILL IN t£XT fDI .DAYS PROVIDE . .. ,, I BRIEf ~ ;I :! \a'RITTEN STATEMENT ON UPGRQWTH ACCEPTANCE ZIPPER INQ..UO_ING ·.'f'INANCIAl SU~T :· EfFECTIV~ '1 1 FEB. UTILITY IN BONN HAS IN HAND OfflCIAL LETTER SIGNED BY .flN MIN ; SCHAEFER. ON AJM>ING F'RCJ4 1 FEB. .; ' l I ~-.: 6. ALTHOUGH-PlO Of'flCIAL WORD mot UTILITY, . '-£ ANTICl~.ATE THAT UPGRQr/TH· . WILL GIVE HIM REsPONSIBILITY CONTINUING INTELL NEGOTIATIONS TH~T STEM -.f:RtM, !· 1, I (; . \ "' ., TREATIES ~ND ARE RELAT~ COLLECTION Of INTELLIGENa:, INCLUDING EJ(Pl.OITATION'~Of l'WS1 REfUGEES AND R£TURNEES f'RCJC SOY BLOC. ALSO ANTICIPATE THESE RESP,ONSIBILITlfS ' . . WIL:L BE· DELEGATED BY UTIL,ITY T~ HIS BONN ~IAlsoN orf'ICE f'oR NEGOTIATION WtTH OCA. wt BELIEVE THIS OESORABLE 'SOLUTION TO KEEP THIS ryPE NEGOTIATION 1, SEP~RATEO ,I ·'· FR04 (A) THE CuNDESTINE SERVICE LIAISON CHANNEL AND (8) THE r«>Rf ·OVERT EVALUA· . i . .. . . ' ·: . . TION LIAISON atANNEL THAT WILL BE F'ORESEEAEL£ FUTURE. ALSO BE CA~IED OIJT. 'IN '' ~; MJNICH Stl€WT INOE~M>ENT OF' .THOUGH COORDINATED WITH OUR CLANDESTINE °LIAISON. END Of MESSAGE SECRET/RELEASE ·\.·.·.. TO GERMANY ONLY \ \.< 573 REL Ger Secret - .......

Secret REL Ger .. ( ' , CLASSIFIED MESSAGE TO FROM : ! DIRECTOR EE 1-2 INFO COP lI ,·, ... 3, s/c 4-5 . - - DIR RE: PUU. . .~ 1222Z 5 rEB 56 CNf"O; 3228 ('IN . t i SONN 3681' (IN 19]95) TO: I TO GERMANY ONLY BONN ACTION: ,' ~;nir-·~ - CITE; · BONN. f'P.AN 1 PULL 18;<>3) CONVERSATION WITH - 3 F'£8 COHflRMS m:r INCLUDING FEB 1 DATE. F'OR F'INANCING ALTHOOOH- POINTED OUT THAT f"EW T£CttUCAL FINANCE POINTS R~IN . I ( I '1 A ND AUTitORIZATION NOT YET FORt-tALLY SIGNED ALTHO ON • • • DESK. O&O OF' MESSAGE · SECRET/RELEASE TO GERMANY ONLY [j . S·E-C-R-E-T l REL Ger Secret .,,:. IT IS FOl?BIOOEN TO MAKE A COPY OF 574 ., f_v'f&~v' .J~/IPL¥- 7°R:lf.«•/(_ \ TH.is MESSAGE Copy No.

Secret REL Ger ., I TtCJJ.A SECRET/RE.L~AS.~ ..>\ TO GERMANY.~ONt.YL- I 17 986 28. Frn. 19 S6 I !ran~un Chiet o.t 8tattce, Cbto.r ot Bqo, hl.l.cu1ti. . \ I I \bat. &11 o~ . . . . . ., oa \bie • • 1- 111"8 ant lOQJ ~w.ns. ;la ..u1na .• $\ma\ i \ •Of!iU '\O • tb!it VO baff a w.told purpo111 (a) to ICtdat the.--~ o1 ~ l.GQO_ 91 ~ ~-u. ot ow fln*MW ~ ~UeaJ. •~'1 io, • Pl'CIJ,.n t.lfll' wt aaavo. ~ •inn 2. ~ ).9'69J Ala4 (~) " ••~ ~a tiM ·~~ ot :=,.,~• - ' ot Ulll DmlO.el•ob:IJ.ob~ (qb). · l\ 1* tiol.Und t.ha\. . .iq tdbdas J.Ua wi.11 eo.-pUoti ~~.· · . J,. a~ \bf a s. ..._...: * a. ~ deo1.... lMdl in t>M. 11 hl.J 19J5 ...~ ot tbe C&bln8' ol t1a9 Fedaal lte1pufalt• Je~ the .-~-- Gt ~ -~ :tntellig1111Se hntff oontainH ~ hlli'ild.Qa te... ~·• ·. • (1) ftt ~ ReJNbU.O ·,.tel ~ll •· ~•• ·,_ aoiMa 91'flnlia~ ~"' , . . . ~ ~ OUfU:tf wbloh ~ .... ~~ ~ 1114. wJ\b the ap~ ot. ~ t•>~ ·~ bPl\JUe scm:n1MA~.. )1eU. 1il ~...~P~ "' ODtQO ~ttu, WC'a14 1- to'9i$1Ml •• tu ._.lna ot noh a ~atton, · ·""..wa." a.me• nuw " ~w. • CJ> .. CJa..-a Cfben$eJlttq .t * hch"'1 i'l!P•blto, (It) no bud.P.\ ~'tees ·ti, mm.-· (~•et1ullDObot) of ~ '8deael. -~"110 r: !. l I:·< ·:. ... SE.GBET/RELEASE S[Q.iSE·f1MANY ONLY . . . (Utru Oflcbleb) I 'F•''• bJ" *- ~ aov-..at ... ~· . l'cwt.aved lt" . _ (1). ~ (1) l'Uti'ftd .iwcliate pu-limn'4PJ ·o•~, ~ pft.tr - - ~· at - ~ , . ~ 111$ . . . taoUdlr. ltAa {J) '"41MS.nd t.b4a ....._. ~Ueal ~PPGA fNl .it ~· •ttoe, inoJ.a-U111 .~ .oppoei.,_an tJiD, oo.11 to 'UU,. A1""'8b a Ne"1ar 1'11d&ot. to.,, ia o°"""' ~ ~ appoar ~ Sn· \be ii• ~ l\isp\Sbllo blada•\ o..,no1n8 >. ~ rt ::.··. t1ie rt rab S6 ,, . 2 'ppee.. TRA-N'P'-°'11.... COfY. 575 REL Ger Secret

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Secret REL Ger II SE (SPEl:IFY AIR OR SEA POUCH) DISPA. GERMANY__,QNl.V J CLASSIFICATION !/ . •) JO Mar / :::i~r~~·e•,•Pull••a•o•h•.••~~'""1~1~1.·,,i',.'1r 10 FROM SUBJECT: GENERAL- . SPECIFIC- L. t Operational . 56 L Financial 'li'ansactions with URlWING and Federal Republic Finance Ministry AttachJllenta A ard B are copies of receipts given the representative of the Finance Ministry on 16 February and 1.3 March respect! vely in repayment of an equal sum 4, 3.50,000 advanced in cash as a loan to UPSWING fo~ its February and March 1956 expenses. The Finance Ministry representative drew' the funds in cash trom a Munich bank against a Finance Minister check. These tunds were then delivered to ~e POB .finance officer in the presence of an UPSWDIG finance representative· and receipted for in the alias indicated. 1. ™ 2. Attachments c and D are official requests signed by @WE2U>T, the a.cbninistrative UPSWING deputy, for the total funds provided on loan as ari adv~nce to UPSWING tor the perio4 FebrUBr7-March 1956. 3. Attachment E, a memorandum to UPSWING floom us, completes the. tz.ans- action between us, UPSWING and the Federal. Finance Minister for the months of Februl11"1' and March 1956. · 4. Our support to ZIPPER during this period has been l:f.mi ted to the pay- ment ot comparatively minor obligations for which Federal. Republic tunds were not available. These vill be reported upon by" POB according to established procedures.· As reported in other ·correspondence, the UPSWING budget for the FI beginning l April 19.56 is Hing negotiated in Bonn during the last week in March 1956. Until ~ decision on the final budget figure is known, we are unable to accuratel;y forecast our own future financial support to UR3WING throudl the continuation of the ZIPPER project. · S. The attached doc\llTlents are historicillJr significant in that the:y represent the only written eVidence of the trans.fer effected 1 February 1956. 6. We have been assured that the original signed receipts (Attachments A a.rid B) will reside in the safe of the F.l.nance Mini&ter and receive appro- priate security handling. Attss S A thr\l E as above . ,,-- r~ JkVb'U8.4.-tu a:r/.4cdu.""°''..J,; ~J '- . fu'ST m~./K.U c,,J.¥- ~o:::.. ~ ·.; J EE, w/l oy ea att mRE~----------...; ,. 3 COS ti n " .. 29 Mar '6 fORM NO. MAR, 1949 51 -~"8 A I . I I' : f-+.irf-loilHWl-fH\il-Y-1AA-ilil-\7~ 'z /;,iR. <~A tJ'rdll f 577 REL Ger · Secret

Secret REL Ger /'I ,,··., ,. ., ...J-.r,' ,· .SECRET/RELEASE TO GERMANY ONLY ; . .... o· U l.J TUNG I' •b .. , . Ill . .. '\ ., .Uber 2.250.000, ~~ (Zwei'r·Millionen-zweih.under.fU•ftigtaueend M) ·-------- . ··-·· . .. -., : VOm iji.mdeeminleterillm, der F-inBn'Z~n filr Rilckzahlung eineA ,. .. Vora~hussee (&:onat l·'~brU.ar? .., .. - ., erhpltenl den 16. Pebru•r,'_ j.'' /. 195 .6 ... i·' ,, SECRET/RELEASE TO GERMANY 'ONI v: _ REL Ger Secret 578 . . lt'A?J "'.,. .,. ,;.,,'1 . ~- E-G. ~ - -.. . .. - ,.. " . •Iii . ':•~ • ·(~I , .. ; 4.. .~ ·\J

- -- ------ ---------- Secret REL Ger . I '· SECRET/RELEASE TO GERMANY.ONLY Qu l ' ! .1 t t u·ll B ,. ' ' I i (in Ziffera) DK 2.100.000.-- Ulutr ····-·---~----····- Dtiut·aohe I llark,, Z"eiailltonend.llhwsd.erttaueeni , (in Worten) I' . vo• Bundeeainiateri\lll 4er liauzea · · I fUr. RU'oJui~llluJJ4r. ei~ea Voreoh.ua!ln . riohtie erhaltea su haben beaobeiniitt I •• J .. .(Un. . reoaritt). . (Xeat J.Xarshall, · .' Colonel, OS, United S~atea Army) ... .' I I/ '·. ·1 ,·,.. I : :.·:. . . , .. 'I ., ' SECRET/RELEASE .TO GERMANY ONLY • I ". '. I .. •• ,t . , ... REL Ger 579 Secret i I . I

Secret REL qer I : ,,• ',•', . : ; ' i !rO . .. . •' ; • I ' ... , . ; ' ' . ,t .. ·. ' "1· 80i . .. :,:ao11 ' 88. . ., " . 1·Advanoe :9t Pimda by 801 · . - ·Reimbursements .by. Buni.i"eefinanzminieterium . ... !fhe following pa1111enta were made1 .. .' : . ... .· ;· ···:· i. . ' by.801~· peb 1956· to 88 I. by "ao1;"·li!ar 1956 . , ... .by !undesfinanm- . :, miniaterium . ·'_ · .' " by Bund,afinanis- . · · "• · mini s1;er.ium I· .. ' ( to 801 1.960.8000~ • 2.250,,000.- 2.250.000 .. - . ·I . ,) 2.100.000 •.....;. ·I ' 4.210.aoo.~ ·Totals : ., 4..3500000.- fhus, the· a.mount· 6r DK 139.200.~·remaine t9 the o~edit. · :. ··.of ea ·and 1 t 1~ ~equeettd 'that 1 t :be made· avatlatile ·ta '. .the organization. ·· . : ' ·. ! • . . •'· . .' SECRET/RELEASE: .... :JO GERMANY ONLY·· . : . ·" • ·, t .... ,' .,;"· ..... "·.. .. . 580 .. ., ... , ,. ~·:~ ., ' .'· . ,10' ' "I 'I •bf;

Secret REL Ger }: l TO I 801 . : .·. .. . ·as· · :PROM- of \ . ~OBJECT a Request '!Or Ad.vance piunqe to be ·Reimbursed · by Bundesfin~~~inisterium This requ.eat supersedes and oonsolidatee a:ll previo.~s tor funds tor·th~ m~ntha ot jebru.ary and Maroh.~956~ . \ ~ .. requests .· ... Advance Normal !ebruary'coet~ .. - i~ego.eooo~ Advanoe Travel c:os.te Jabruary. · · .. 70.000.::... Advanc' N~l'qlal ~aroh Ooete -. - · 1.960.000r.-. • Advance for u.napeoi:tied aotivi t.i'es especially in ao~neo_tion with 429.200.- release ot Heilmannetrasse . .: . Ao B. Oo D. '. \ ..... • \ . I : i'. u- . . ~ .' ' ... ' De;puty for general affair.a"· : " . .. ' " . ' ; ·. ·. ,' ., . . r., " .. ·.. ." . .·: · SECRET/RELEASE · ll,. ''.f~· ... ...... - ·. ._ ·! I TO GERMANY ONLY ~·· .... ' .. 581 REL Ger Secret

Secret REL Ger ,. ,.... ' ' ... \/. ' I .\ J. SECRET/RELEASE TO GERMANY ONLY lo. l>DH .. 2J lUftb 1956 ' 1'01 SJ0/'10U . IDOM1. 8'1Jl./rll!I . · '• Stmlt:O'ls . I .liN.W. ~t.toq.~~. ..0. ...... 19'6. lI. I '• ; ',. . SECRET/RELEASE· TO GERMANY ONLY 1~ I· .I REL Ger Secret • 582 I