(a) Funds for monthly expenditures incurred by the networks will be provided by the General Command to the respective Forces. Control of the funds will be the responsibility of the respective Directors of Intelligence of each Force.

(b) The procedures to legally account for funds allocated for Classified Expenditures shall be pursuant to the procedure set forth in Order No. 0 11/89 on Classified Expenditures and Circular No. 1275/9 1, Instructions on Classified Expenditures.

(c) The funds will be allocated under the following categories:

- Operating Costs
- Maintenance and acquisition of supplies
- Payment of Agents and Informants

This scheme is as provided for in the Standing Order on Intelligence and Counter Intelligence 200-3/87, Chapter 111, "ADMINISTRATIVE MATTERS."

(d) The funds for the Army will be distributed as follows:

- From the Armed Forces General Command to the Army Command (DINTE)

- From the Intelligence Directorate to the Twentieth Intelligence and CounterIntelligence Brigade.

- From the Twentieth Brigade to the Intelligence Battalions

- From the Intelligence Battalions to the networks.

In the case of a very large payment for information, over and above the sum allocated for each network, a request should be directed to the Intelligence office of the respective Force.

(e) For the National Navy and Air Force, the funds shall be distributed as follows:

- From the Armed Forces General Command to the Intelligence Directorate

- From the Intelligence Directorate to the Network Commands.

(3) Network Management

Personnel

(a) Network Chief

The Network Chief is in charge of administering the network's human and material resources, as well as organizing, directing, and orienting the search effort, consistent with the missions assigned or that may arise in light of the specific problem in a given area.

Characteristics:

Active-duty officer with broad knowledge of the area, of the problem, ability to make contact with persons in the zone, and to maintain a facade. In addition, he organizes and operates the network.

He determines targets of interest to Military Intelligence that are to be covered in his area, engages in analysis, and evaluates the information gathered. He provides the relevant information to the Brigade and Division Commanders in a timely, clear, and accurate fashion.

He establishes coordination and control mechanisms to receive and disseminate the information. He opens accounts to receive the funds earmarked for managing the network.

He provides direct support to the Divisions and Brigades

and their respective equivalents regarding the information, and supervises the Area Chiefs.

(b) Area Chiefs

The Area Chiefs are Intelligence Agents with the experience required to be accountable for a specific sector of the critical area and to manage the Control Agents required to cover that area.

Characteristics

Area Chiefs should be retired or active-duty Officers or Non-commissioned Officers, and should have a cover, a false identity, a vehicle, and a pre-established communications system; they should also be located at an easily accessible site, and should establish mechanisms to make contact with the Control Agents. An Area Chief could also be a civilian with training and influence who is trustworthy.

Each Area Chief will ensure that the Control Agents do not know one another, and will keep the Network Chief informed through secret mechanisms; if the importance of the information so warrants, he will meet personally with the Network Chief.

He must be familiar with his area and establish the different targets as well as their priority. He assigns the Control Agents the places where they are to recruit informants.

They undertake concise analysis, and evaluate the information before passing it on to the Network Chief

(c) Control Agents

The Control Agents are directly under the Area Chief, and are to be civilians or retired non commissioned officers with some experience and certain qualities.

They are in charge of covering the targets; they manage and direct the search effort of the Intelligence Agents.

They are in direct contact with and come directly under the Area Chiefs.

(d) Intelligence Agents

Insofar as possible they should be retired Noncommissioned Officers trained to handle informants, process information, and to pass it on through the Control Agent in a timely fashion.

They should have detailed knowledge of the area, its population, problems, and the operational situation.

(e) Informants

They provide information on topics of interest to Military Intelligence and in general they are not members of the Institution.

Informants' duties:

- To obtain information on the assigned target.

- To pass on to the Intelligence Agent the respective information about his target, in timely, accurate, and clear fashion.

- To ensure the greatest possible degree of compartmentalization with respect to the persons with whom he lives.

Bearing in mind that there are different classes of informants, insofar as is possible they will be recruited informants

This is in view of the fact that recruited informants yield better results, since they are selected, recruited, oriented, and directed by an Intelligence Agent in their search for information.

Techniques for recruiting an informant:

To recruit an informant, the following techniques should be taken into account and followed step by step; this will guarantee the quality of information to be collected. These steps are:

- Preliminary study

- Initial contact

- Cultivate and develop the contact

- Orientation and training.

Causes for dismissing an Intelligence Agent:

- Violation of security

- Fraud

- Incompetence

- Breaking the law

- Considerations of force majeure

- Unknown whereabouts

(f) Rural Network

The operation of this network in terms of personnel should be similar to that of the urban network. Measures should be taken to ensure that the physical appearance, dialect, and customs

are similar to those of the area in which the intelligence activity is being carried out.

(4) Miscellaneous Aspects

(a) In recruiting informants their access to information should be taken into account; one must avoid insofar as possible being guided by friendship, familiarity, camaraderie, etc.

(b) It is important to avoid visits by the Control Agents and the Informants to the place of residence of the Network Chief-, the established channels should be used for any communications among them.

(c) It is to be emphasized that the networks should be managed covertly, adopting the approach that an intelligence network requires.

(d) The orders and guidance on intelligence should not be drawn up in writing.

(e) Urgent recruitment of informants should be based on quality and not quantity.

(f) The Control Agents should maintain permanent contact with their informants, and should do their utmost to avoid making sporadic visits.

(g) Specific missions should be determined for each of the informants, based on knowledge of and access to the target of interest, as well as their training and experience for such purpose.

(h) One should not promise what cannot be done or what one has no intention of doing.

(i) There should be no written labor contracts with the informants or with any civilian member of the network, nor should any be entered into. Everything should be done orally.

(j) Under no circumstance shall written confirmation be issued attesting to anyone's employment by the Intelligence Agencies.

(k)Upon recruiting an informant, the Ministry of Defense shall not acquire any labor-related or legal liabilities.

(1)Experience has shown that on some occasions it is more advisable to pay for information than to have fixed informants who ultimately become information-peddlers, or produce little and poor-quality information, since they receive a fixed salary.

(5) Administrative Aspects

The investment of resources requires careful logistical assessment and methodical planning to ensure their use is optimal.

(6) System of Operation and Organization

(a)The rural networks of the Army, the National Navy, and the Air Force will operate on the basis of critical areas, and their territorial placement and distribution will be determined by the Division and Brigade Commanders or their equivalents based on the existing situation.

In any event it is necessary for the rural network to be located in a well-defined critical area under the responsibility of a Minor Operational Unit Command to avoid duplication of effort.

(b) The National Navy may establish river networks in zones with rivers, in addition to the rural networks assigned. Instructions should be issued to that effect, including operational requirements.

(c) When a rural network is to be established, the critical area should first be chosen; if it is very large, it is advisable to divide it into two sub areas, and to place an Area Chief in each one. The Area Chiefs command the Control Agents, who are located in the major municipalities of the area and in appropriate rural sectors.

These Control Agents, in turn, command the Intelligence Agents, who in turn control the informants

(d) The urban networks of the Army are organized in intermediate-size cities and capital cities so as to ensure a permanent flow of information about subversion. Determining the areas and placement of the Control Agents within the city selected is a responsibility of the Brigade and Division Commanders.

(e) The urban networks of the National Navy are organized around Ports, in that their area of operations includes the shipping and fishing companies, dockyards, and other official and private agencies that have to do with port activities. An effort should be made to avoid the trend whereby these networks would be concentrated in the city where the Port is located;

to the contrary, they should be distributed throughout the coastal and riverine areas assigned.

(f) The urban networks of the Air Force are called airport networks and are organized in the airports; their Control Agents cover the other airports of the area selected. Their area of activity will be official and private air transport companies, both national and foreign, pilot clubs, pilot schools, maintenance shops, tourism companies, and in general all organizations that have to do with air traffic. Special attention should be given to the control towers and to operation of the airport; but measures should be taken to ensure the network's coverage is not limited exclusively to airports.

(7) Command and Communications

Omitted.

(8) Inspections and Regulation

a) Based on the timetable established, the organization of urban, rural, port, and airport intelligence networks should begin to operate in the second half of 1991. For this reason, the Commanders of the respective Forces schedule inspections during this period, and the General Command will verify the instructions contained herein on the following dates: Last week of August and last week of October.

b) Guided by the instructions contained in this Order, the Commanders of the respective Forces are preparing instructional primers on network organization, training, management, and operation, as follows: