SECRET
-2-

Starke confronting him with what he had heard. Vice Starke told Correlio that what he really wanted was to establish a contraband business mainly dealing in whiskey. Starke also visited A-1 and timidly told A-1 that he was in financial straits and the reason why he had wanted to move MRR people into key positions was to use the MRR vehicle as a cover mechanism for contraband. Vice Starke told A-1 that he could obtain the approval of the government to engage in this type of business. It appears to A-1 that Vice Starke did present the contraband proposition to Correlio Orlie and received tacit approval. A-1 informed both Correlio and Vice that since it was their country they could do as they pleased, however, he would not permit his vehicles to be used for this purpose. His main concern was to liberate Cuba and not to engage in the internal affairs of Costa Rica. His only desire is to be left alone so he can work effectively.

c. What is Figueres' role in this? A-1 replied that he had not seen any indications that Figueres had been involved. Although he and Vice Starke are close friends, they are political enemies.

d. What were his specific charges against Cabezas?
A-1 stated:

(1) The main charge against Cabezas was his collusion with Vice Starke to subordinate AMWORLD to the MRR.

(2) Cabezas held a meeting with Vice Starke's brother and Rafael Calderon without authorization or informing A-1.

When A-1 initially confronted Rolando Cabezas, the latter refused to answer any of A-1's questions. At a later meeting Cabezas confessed that the reason why Vice Starke had sought control of the MRR was for the contraband whiskey. A-1 feels that this contraband whiskey was used as an alibi and the main motive had been to overthrow the Costa Rican Government.

"Will Vice Starke accept defeat or will he try again to control our movement?" A-1 feels that Vice Starke no longer poses a direct menace to his organization. Starke has been removed from the intermediary role with Correlio Orlie. Starke, however, is still in close contact with Correlio Orlie. A-1 emphasized that Vice Starke will not be re-pitted to head the campaign, mainly GULLOU, even though it is on his estate.

SECRET