Headquarters
Detachment "B"
APO 168 US Army
2 May 1959
SUBJECT: DRAGANOVIC, Krunoslav (U)
XOR: 0-0149
1. Circumstances of Contact:
a. Reason for meeting: To attempt to determine SUBJECT's potential and his willingness to cooperate with this unit in the collection of military intelligence information.
b. Date, time and place of meeting: 28 April 1959; 1900-2130 hours, in FRANCO's room at the Pensione Santa Caterina, via Po 2, Rome, Italy.
c. Transportation utilized: FRANCO travelled by commercial rail to and from Rome.
d. Language spoken: Italian
e. Unusual occurrences: FRANCO met a priest [censored] the details relative this meeting are reported under Operational Data of this report.
f. Additional security precautions: None
2. Finance: Not applicable
3. Logistics: Not applicable
4. Operational Data:
a. FRANCO departed from Verona, Italy, via commercial rail, at 2155 hours, 27 April 1959, arrived in Rome, Italy at 0730 hours, 28 April 1959. FRANCO registered under his true identity at the Pensione Santa Caterina, via Po 2, where personnel of this Pensione are under the impression that FRANCO is an American businessman from Munich, Germany. Upon completion of the mission, FRANCO departed from Rome at 2220 hours, 1 May 1959, and arrived in Verona at 0530 hours, 2 May 1959. No difficulty was experienced while at the Pensione or while in Rome.
b. During the early morning hours of 28 April 1959, FRANCO (as reported in XOR: 0-0213) had met with [censored] and during this meeting ORVAL again highly recommended DRAGANOVIC and stated that FRANCO proceeded to the Collegio San Girolamo, via Tomacelli 132, Rome, which is a religious institute dedicated to processing documents pertaining to Yugoslav refugees and is also the office of Father DRAGANOVIC. FRANCO did not find DRAGANOVIC at the College but was confronted by a priest who identified himself as [censored] and who asked FRANCO to identify himself. FRANCO told [censored] that he desired to meet DRAGANOVIC and asked [censored] if he knew where DRAGANOVIC could be located. [censored] after being convinced that FRANCO was an American and not a Tito agent, stated that he would attempt to contact DRAGANOVIC telephonically. He proceeded to a wall telephone and dialed a number but obtained no answer. It was obvious to FRANCO that [censored] did not want FRANCO to observe the number he had dialed. [censored] and FRANCO then engaged in a long conversation with [censored] doing most of the talking. FRANCO noted that [censored] began to be more cordial and finally [censored] wrote an address and telephone number where DRAGANOVIC could be reached. [censored] is a young looking priest of approximately 40 years of age, was very bitter at what he called the high pressure or high powered politics of the "Anglo-Saxons" concerning the country of Yugoslavia. [censored] stated that the United States and England were responsible for the Tito regime in Yugoslavia and that the United States and England had betrayed the "real people" of Yugoslavia. He preached on this subject at length and finding FRANCO an attentive listener, invited FRANCO to take a short walk with him. FRANCO and [censored] walked near the Tiber River for a short while and during this walk [censored] stated that he greatly admired DRAGANOVIC and that he felt that FRANCO would feel the same way when he met and talked to DRAGANOVIC. [censored] stated that DRAGANOVIC travelled considerably and that he was a person who "knew what he was doing". [censored] then stated that he had to leave and told FRANCO that he would attempt to get in contact with DRAGANOVIC and to tell him where FRANCO was staying. By this time [censored] was completely cordial and stated that he had been happy to meet FRANCO and hoped someday to meet him again.
c. At 1400 hours, DRAGANOVIC called FRANCO at the Pensione and stated he would like to meet with FRANCO that evening. FRANCO informed DRAGANOVIC that he would be pleased to meet with him anyplace he selected but DRAGANOVIC stated that he knew where the Pensione was and that he had to go by the Pensione to get to his home, therefore, he preferred to meet at the Pensione. DRAGANOVIC appeared at 1900 hours. In the room, he immediately asked to see FRANCO's identification document and when shown same stated that he was satisfied. FRANCO asked DRAGANOVIC if he knew who FRANCO was and what he was engaged in and DRAGANOVIC replied that he had talked to [censored] and that [censored] had told him that FRANCO was employed with United States Intelligence and that FRANCO had been known to him for 15 years. DRAGANOVIC stated that [censored] had highly recommended FRANCO to him and that was the reason he was in FRANCO's room, otherwise he would not have been there.
d. DRAGANOVIC stated that he had known a William GOWEN (formerly with CIC in Italy) years ago and also a certain [censored] (believed to have been working with a United States visa program in Italy) and that he had assisted them in their work and had always had pleasant relations with them. He spoke at length on cases of Tito brutality [sic] against the people of Yugoslavia and also discussed the murder of 35,000 people by an execution squad composed of Tito's partisans during World War II. He stated that these people had all been murdered and then buried in a deep ravine not too far from Basovizza. DRAGANOVIC had personally conducted an investigation relative these atrocities and had succeeded in obtaining statements from members of the execution squads. He stated that he had conclusive proof that entire families had been exterminated. He also recounted that approximately over one year ago the port of Rijeka had been sealed off for a few days and that an entire shipload of arms and ammunition given to the country of Yugoslavia by the United States had been loaded onto a ship which had no markings but which was obviously either Soviet or of a satellite nation. He stated that he had conclusive proof of this as some of "his men" were involved in unloading and loading crates of rifles. His men wanted to smuggle out a case of rifles in order to obtain the serial numbers and therefore prove that they were of United States manufacture. DRAGANOVIC stated that he "reported" this plan and got nowhere as he could not find anybody that was even interested. DRAGANOVIC stated that he also has proof that Tito has been delivering arms to the rebel forces in Algeria.
e. DRAGANOVIC and FRANCO then discussed the reason for the meeting. FRANCO asked DRAGANOVIC if he would be willing to assist FRANCO in obtaining information relative Yugoslavia. DRAGANOVIC stated that he would be willing as long as FRANCO demonstrated sincerity with him in all of his dealings but at the first sign of insincerity, he, DRAGANOVIC, would cut off the relationship. He stated that he had too much to lose and would not tolerate anyone playing any games with him. He also added that because of [censored] recommendation of FRANCO, he was sure that he would never have any trouble with FRANCO in this respect. DRAGANOVIC stated that he had many excellent sources in almost every part of Yugoslavia, some of these sources had been personally recruited by him when he was in that country, and some that had been cultivated over the years since his departure. He stated that he has been engaged in intelligence activities since 1943 and that in the past 12 years he has never lost a source. DRAGANOVIC stated that he has been written up at least 200 times in the Yugoslav press as an enemy of the State and that the UDB has arrested persons and accused them of working for him but he was emphatic in stating that all these accusations were unfounded and that the persons arrested not only had not worked for him but were unknown to him. DRAGANOVIC stated that he is in contact with persons in Yugoslavia who keep him abreast of the political, economic situation and also on opposition groups. He stated that it would not be difficult to obtain military type information.
f. DRAGANOVIC added that he had excellent channels of communication into and out of Yugoslavia, that these channels were not as "speedy" as he would probably like them to be but that they were very secure. He stated that he was satisfied with them but would be willing to work out any plan that FRANCO might suggest relative making them faster. He stressed the security of these channels but did not go into any detail. He also kept away from the subject of identifying the level of his sources and this was obvious to FRANCO. FRANCO made no attempt to press DRAGANOVIC on these two points. DRAGANOVIC was asked about finances in the event he desired to collaborate. He stated that he expected expenses to be paid to any individual who was sent in on a mission or who was asked to come out of the country. He stated that these expenses should include hotel, food, and travel. DRAGANOVIC was asked about his expectations relative payment and he replied that he would never accept one cent for his collaboration as he did not desire any personal gain for his fight against the Tito regime. He stated however, that we could and that he would accept money which would be used by him to continue his fight against Tito. DRAGANOVIC stated that he often published anti-Tito material for distribution in Yugoslavia and that he would probably use any money given him to defray printing expenses.
g. DRAGANOVIC stated that he often changes his residence in Rome because he knows Tito is after him. He stated that Tito has attempted to infiltrate Catholic priests sympathetic to Tito into the Collegio San Girolamo but that he has always unmasked them and gotten rid of them before they could do any harm. DRAGANOVIC stated that he has dedicated his life in the fight against Tito and when asked by FRANCO how he, a priest, could spend so much of his time in the fight against a regime, DRAGANOVIC replied that he placed his country before his church. FRANCO explained to DRAGANOVIC that this meeting had been held in order to learn DRAGANOVIC's views relative collaboration with FRANCO's unit and that FRANCO was to report all details of the meeting to his superiors for a final decision. FRANCO also explained that if his superiors decided to go ahead with this collaboration, another person, an expert of Yugoslav activities, would probably be introduced to DRAGANOVIC at the next meeting for the purpose of working in the future with him. DRAGANOVIC stated that he understood this perfectly and that he was agreeable to this plan. He again stressed sincerity and added that he did not want to deal with an immature person as well. DRAGANOVIC stated that he would also like to think over FRANCO's proposition but that he was sure that he desired to work with FRANCO's unit. He stated that he would give serious consideration to what he could do and that he would do everything possible to supply the type of information desired.
h. During the meeting DRAGANOVIC asked where FRANCO was located. FRANCO told him that he resided in Verona but that he travelled considerably and gave DRAGANOVIC the impression that maybe FRANCO's office was not actually in Verona but that FRANCO merely maintained a residence in that city. DRAGANOVIC stated that he also travelled considerably to Germany and France and that these trips sometimes kept him away from Rome for 10 days at a time. He explained that there were a lot of refugees in Germany and France who needed his help and that was the reason for his travels. DRAGANOVIC stated that he would be willing to travel anyplace in order to meet with FRANCO or with his colleague when it was decided to start working. DRAGANOVIC stated that he would like to have FRANCO write to him within 10 days indicating the decision taken by his superiors. He stated that he is presently living with a very reliable family and that FRANCO could address a letter to that address to him. This family is [censored]. The telephone number of [censored] is 814584. FRANCO promised to write to him as soon as a decision was made and also stated that he would probably be seeing DRAGANOVIC shortly.
5. Leads: None
6. Instructions to Agent: Not applicable at this time.
7. Agent Handler's Comments and Recommendations:
a. Comments: During the meeting, FRANCO learned that DRAGANOVIC was born on 30 October 1903. He does not smoke and when invited to dine with FRANCO, stated that he prefers to dine at home as he only eats one soft boiled egg which he really enjoys. DRAGANOVIC is approximately 72 inches tall, weighs approximately 185 pounds, as light brown hair and a sallow complexion. He speaks Italian with a Yugoslav accent and stated that he is very fluent in German. He also speaks Croat and stated that he will speak Serbian only when necessary. DRAGANOVIC impressed FRANCO as being very astute, very intelligent, sincere and straightforward. He is blunt in his speech and does not mince words. He has an immense hatred of Tito and the Communist regime in Yugoslavia. He is writing a book or series of documents which he hopes someday to publish or to turn over to a United States commission or committee charged with the decision of giving aid to Tito. He stated that these documents will convince anyone, without a doubt, that Tito is not to be trusted and that he will never fight on the side of the West. He indicated that we can expect him to ask us for favors relative his refugee work. He gave all indications that he has excellent coverage of Yugoslav activities and that he is an able organizer. FRANCO was impressed with his knowledge of security and his security precautions. He is a mature person and realizes that he is not engaged in child's play when working against Tito. He can be rightfully called shrewd and as being experienced in intelligence work. He appears to be happy in his work as a priest.
b. FRANCO recommends that permission be given to him to write to DRAGANOVIC as soon as a decision is reached relative him. FRANCO is of the opinion that DRAGANOVIC will prove to be of extreme value to this unit. He can give us extensive coverage in Yugoslavia. There is no doubt that this operation will proceed [rest illegible] DRAGANOVIC gave FRANCO the impression that he hates Italian Intelligence with a passion so there is no fear that he is working for the Italian authorities. The person selected to work with DRAGANOVIC should be mature and should have a good knowledge of Yugoslavia. DRAGANOVIC will not prove difficult to work with but FRANCO would again like to point out his emphasis on sincerity. He indicated that he is willing to work with us but never once did he attempt to ask the designation of FRANCO's unit or the level of same. He appeared to be happy and satisfied when FRANCO told him that he was working for the United States Government. FRANCO feels that we have nothing to lose and a lot to gain by going ahead with the next meeting, introducing the Agent Handler selected, and working out all final arrangements.
[signed]
FRANCO