Pseudonym: Pedro, Don
02/21/54: Contact Report: No. 33. PLACE: Safe House "A". PERSONS PRESENT: B. Ford and (REDACTION). COVER USED: Pseudonyms. Discussion: Discussion Topic: Don Pedro: "1. In accordance with instructions which I had received, I went over in detail the memorandum (2) regarding the possible use, or exploitation, of Don Pedro. (REDACTION) attitude was completely negative. Even before I had finished the complete discussion of the points contained in the memorandum, he had attempted to interrupt me with strong objections. The complete list of objections is to be found in attached memorandum typewritten. (3) 2. The most outstanding thing which I gathered from this discussion was (REDACTION) intense dislike of Don Pedro, and any possible collaboration with him on the part of the Junta or the Group to him appeared as a grave error. He summarized this attitude in stating that even if we discover that it is necessary to place Don Pedro in a position of use—that is to secure his help in having San Salvador as a base of operations, or in some manner to assist us in that country—whatever small part he plays will not be worth the trouble which will be created later on by incorporating him into the movement. He pointed out that, in weighing this, it would be his opinion, and he was certain that RUFUS (Carlos Castillo Armas) would share this opinion, that no use could be made of Don Pedro. 3. I then explained several points which had been made in the initial discussion, of the written memorandum which had been given to me. However, (REDACTION) did not give in an inch and appeared to be adamant regarding the matter of doing any business at all with Don Pedro. 4. I advised him that, of course, they would be kept in constant knowledge of what was taking place with Don Pedro, and furthermore, the results of the conversations which might ensue." (CONTINUED BELOW).
"5. At this time I returned to the Base and, after conveying the initial reaction of (REDACTION) to Jerry, (4) I was advised that possibly this attitude should be changed slightly to the one that it would be possible to utilize him after his true assets had been obtained and reviewed by RUFUS and (REDACTION), an isolation process would have to take place; that I should advise (REDACTION) definitely that this consideration certainly would be thought of, if his assets did not appear actually to be real. I advised Jerry that I had not brought this matter up because it had not been in the memorandum, although Jerry advised me such information had been contained in the FT Task. I, in brief, outlined the information and reaction and objections of (REDACTION) to him and then advised him that I would return with this additional information for (REDACTION) benefit. Also, I advised that I wished to clarify the matter regarding Mr. Smith’s (4) obtaining an approval of approach to Pedro, and as to what reaction there had been at the time. 6. Checking again with (REDACTION) a short bit later, I advised him that I had been thinking about this matter while I had been gone and that I was extremely interested in finding out further his reaction on this thing. (REDACTION) said that he principally had absolutely no confidence in Don Pedro and that RUFUS shared this view also. I then advised (REDACTION) that, actually, if we discovered that no real assets or real use could be made of Don Pedro, certainly we wished to get him out of the way, either by neutralization, isolation, or, at last risk or cost, elimination. I said we could not allow this man to continue in his present state, in as much as he was actually doing harm to the Junta, and that we must find some way to fit him in or take him out of the picture..."
03/01/54: Letter from Withheld to Carlos Castillo Armas: ..."4. Under the circumstances we must now proceed as follows: a. The propaganda responsibility being mine, I am asking Juan Jose (Nestor Sanchez) to consult with the propaganda advisors in the field and to secure from them their estimate of the funds needed for propaganda in March. Juan Jose has been asked by me to solicit your views on propaganda and on the propaganda budget in greater detail. Out of the information that Juan Jose brings back I will prepare the proposed budget and negotiate it with the Group. b. Similarly, the budget estimates for political work, especially inside our target area, will also be provided by my sources and by the advisors. On this point, too, please give your full advice to Juan Jose. I will inform you of the final sum allotted. c. On intelligence, I have asked Juan Jose to secure Andres’ estimate and to bring back to me a proposal which I shall review and present to the Group. d. On the military matters which are your sphere of responsibility and competence, I have solicited the views of Don Ricardo. He has given me his recommendations, which I have reviewed, in some cases changed, and in some cases accepted as they stood. I have negotiated for you the military budget with the Group and I have secured the approval of certain sums. These sums are being explained to you in a separate letter..."
03/08/54: CIA document: C/R No. 47: PERSONS PRESENT: (REDACTION) and Bob Ford: Subject: Clarification and addition to Paragraph 2: El Salvador, of PANCHO Letter to (REDACTION) dated 26 February 1954. (See C/R No. 43): "The following information regards the clarification of the status of Don Pedro. 1. PANCHO (Carlos Castillo Armas) reminded (REDACTION) that when Guillermo Davila Cordova was arrested in Guatemala, he had on his person a letter from Don Pedro. (Note: Davila Cordova was Don Pedro's Chief of Intelligence in Guatemala). In this letter, Don Pedro advised Davila that Bolanos, the secretary of Presdient Osorio in Salvador, had been conspiring against President Osorio and that he had the moral assistance of Arbenz and his followers in Guatemala. Later Don Pedro was called upon to clarify this charge which involved the President and his Secretary of Salvador where he is now residing as a political exile. 2. Clarification: In a second letter Don Pedro reaffirmed the fact that Bolanos had been conspiring against Osorio and that Bolanos had connections with the Arbenz Communist government. This letter had been written in answer to a request that he rectify and clarify his first letter which, it had been alleged, had been produced by the Communists. 3. Bolanos advised PANCHO that Don Pedro does not have his support nor the personal support of President Osorio in El Salvador. Furthermore, Bolanos told PANCHO that he was to tell his important supporters that serious considerations is now being given to the idea that Don Pedro be evicted from El Salvador in the near future. This would be done on the basis of Don Pedro's second letter which is construed as intervention or participation in internal Salvadorean matters." (CONTINUED BELOW)
"Bolanos said that this lack of support from Osorio was a result of this second letter which has been printed in the newspapers in El Salvador and which meant that Don Pedro was no longer entitled to any right as a political exile in that country. 4. In his final note, PANCHO said that Bonilla, the Honduran Ambassador in El Salvador and a strong supporter of Don Pedro, had been advising everybody in that country that Don Pedro had a considerable amount of prestige among many people but not in the high government circles of El Salvador. (REDACTION)"