CONFIDENTIAL CONTROLLED DISSEM NO FOREIGN DISSEM -3- UFC-8473 (1) The CAELLO I is docked across from Brito's Boat Yard at Stock Island, Florida. The boat is in need of repairs on the deck and superstructure, and the installation of electronic navigational equipment would be required to put it in operational condition. Current docking and routine maintenance costs are not being paid. Efforts to make commercial use of this boat have not been successful. This boat is considered ideal for activities which might be undertaken if there were a base from which to operate, but under the present circumstances the expense which the boat represents is not justifiable. It is recommended that consideration be given to selling the CAELLO I if an operational base is not established within four months. (2) The KYA-ORA, which was donated to the MDC by a member of the military department, is in drydock at Nuta's Boat Yard in Miami. There are leaks in the hull. (3) The LANCHA AZUL is in need of repairs, as well as trailer. Repairs on this boat are being given priority, and will proceed as money becomes available. d. Informal discussions have been held with representatives of the Directorio Revolucionario Estudiantil (DRE, Students' Revolutionary Directorate), and there is an "agreement in principle" to coordinate future actions. There is no political commitment. In July Jorge Mas Canosa, chief of press and propaganda of Representacion Cubana en el Exilio (RECE, Cuban Representation in Exile), proposed that the MDC enter into a pact with RECE, and indicated that some members of MDC staff be offered full-time employment preparing military plans for the RECE. As of late July no formal agreement had been reached. Hernandez, who feels that Ramon Est. Samuel? is incapable of formulating military strategy, favors the formation of a position of plans for military operations under the direction of the MDC staff. He opposes the reorganization of the military department which is currently planned, and feels that his position is less important than that which he currently holds. MDC is urged to remove him from his present position to an unimportant position in the department. 11. In early June Ignacio Valladares Rodriguez expressed a desire to participate in action against Cuba with the MDC. Beatrice agreed to let Valladares work when an operation is to be carried out. Before Valladares left Miami on 6 June for Dover, New Jersey, he said that within a month he would donate a 57mm recoilless rifle, a 50-caliber machine gun, and an unstated number of M-1 and Garand rifles. His address in Dover is Dover Cliff Apartments, apartment 21. CONFIDENTIAL CONTROLLED DISSEM NO FOREIGN DISSEM