-33-

Although Colonel Winert was instructed not to involve himself with Viaux because of the high risk involved (Santiago 461, 5 October), he served initially as a contact to Viaux through an Argentine military Attache. The Argentine reported on October 5 that Viaux wanted several hundred paralyzing gas grenades to launch a coup on October 9. (Santiago 476, 6 October) Headquarters turned down the request, concluding that a "mini-coup at this juncture would be counterproductive" and Viaux should postpone his plans, "while encouraging him in a suitable manner to maintain his posture so that he may join larger movement later if it materializes." (Headquarters 585, 6 October)

The primary purpose of the "False Flag Base" was to contact Viaux, and it very rapidly relieved Winert and the Argentine Attache of that task. Viaux reiterated his demand for an air drop of weapons to the "False Flagger," and again the response was the same: reject the demand for arms, but encourage him to keep planning. In essence the Agency was buying time with Viaux: "We wish to encourage Viaux to expand and refine his coup planning. Gain some influence over his actions." (Headquarters 689, 10 October) To achieve this latter purpose, Headquarters authorized passing $20,000 in cash and a promise of $250,000 in life insurance to Viaux and his associates, as a demonstration of U.S. support. (Headquarters 729, 13 October)

On October 13, Headquarters again indicated its concern over Schneider by asking: "What is to keep Schneider from making statement in early hours which will freeze those military leaders who might otherwise join Viaux?" (Headquarters 729, 13 October) The Station's response later that same day was "Viaux intends to kidnap Generals Schneider and Prats within the next 48 hours in order to precipitate a coup." (Santiago 527,

MW 50955 DocId:32243539 Page 469