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There is no confirmation of this report from the Deuxi┬me Bureau察nor from the authorities in Strasbourg who are reliable and thorough and there is also no news from Le Chiffre's headquarters there察which we have well covered by a double agent in addition to 1860。
If Le Chiffre knew that SMERSH was on his tail or that they had the smallest suspicion of him察he would have no alternative but to mit suicide or attempt to escape察but his present plans suggest that while he is certainly desperate察he does not yet realize that his life may be at stake。 It is these rather spectacular plans of his that have suggested to us a counter´operation which察though risky and unconventional we submit at the end of this memorandum with confidence。
In brief察Le Chiffre plans察we believe察to follow the example of most other desperate till´robbers and make good the deficit in his accounts by gambling。 The 'Bourse' is too slow。 So are the various illicit traffics in drugs察or rare medicines' such as aureo´ and streptomycin and cortisone。 No race´tracks could carry the sort of stakes he will have to play and察if he wins察he would more likely be killed than paid off。
In any case察we know that he has withdrawn the final twenty´five million francs from the treasury of his union and that he has taken a small villa in the neighbourhood of Royale´les´Eaux察just north of Dieppe察for a week from a fortnight tomorrow。
Now察it is expected that the Casino at Royale will see the highest gambling in Europe this summer。 In an effort to wrest the big money from Deauville and Le Touquet察the Soci└t└ des Bains de Mers de Royale have leased the baccarat and the two top chemin´de´fer tables to the Mahomet Ali Syndicate察a group of └migr└ Egyptian bankers and business´men with察it is said察a call on certain royal funds察who have for years been trying to cut in on the profits of Zographos and his Greek associates resulting from their monopoly of the highest French baccarat banks。
With the help of discreet publicity察a considerable number of the biggest operators in America and Europe have been encouraged to book at Royale this summer and it seems possible that this old´fashioned watering´place will regain some of its Victorian renown。
Be that as it may察it is here that Le Chiffre will察we are confident察endeavour on or after 15 June to make a profit at baccarat of fifty million francs on a working capital of twenty´five million。 And察incidentally察save his life。
Proposed Counter´operation
It would be greatly in the interests of this country and of the other nations of the North Atlantic Treaty Organization that this powerful Soviet agent should be ridiculed and destroyed察that his munist trade union should be bankrupted and brought into disrepute察and that this potential fifth column察with a strength of 50000察capable in time of war of controlling a wide sector of France's northern frontier察should lose faith and cohesion。 All this would result if Le Chiffre could be defeated at the tables。 NB。 Assassination is pointless。 Leningrad would quickly cover up his defalcations and make him into a martyr。
We therefore remend that the finest gambler available to the Service should be given the necessary funds and endeavour to out´gamble this man。
The risks are obvious and the possible loss to the Secret funds is high察but other operations on which large sums have been hazarded have had fewer chances of success察often for a smaller objective。
If the decision is unfavourable察the only alternative would be to place our information and our remendations in the hands of the Deuxi┬me Bureau or of our American colleagues of the Central Intelligence Agency in Washington。 Both of these organizations would doubtless be delighted to take over the scheme。
Signed此S。
´
Appendix A。
Name此Le Chiffre。
Aliases此Variations on the words 'cypher' or 'number' in different languages察eg 'Herr Ziffer'。
Origin此Unknown。
First encountered as a displaced person察inmate of Dachau DP camp in the US Zone of Germany察June 1945。 Apparently suffering from amnesia and paralysis of vocal chords ┌拭both feigned。 Dumbness succumbed to therapy察but subject continued to claim total loss of memory except associations with Alsace´Lorraine and Strasbourg whither he was transferred in September 1945察on Stateless Passport No 304´596。 Adopted the name 'Le Chiffre' 'since I am only a number on a passport'。 No Christian names。
Age此About 45。
Description此Height 5 ft 8 ins。 Weight 18 stones。 plexion very pale。 Clean´shaven。 Hair red´brown察'en brosse'。 Eyes very dark brown with whites showing all round iris。 Small察rather feminine mouth。 False teeth of expensive quality。 Ears small察with large lobes察indicating some Jewish blood。 Hands small察well´tended察hirsute。 Feet small。 Racially察subject is probably a mixture of Mediterranean with Prussian or Polish strains。 Dresses well and meticulously察generally in dark double´breasted suits。 Smokes incessantly Caporals察using a denicotinizing holder。 At frequent intervals inhales from benzedrine inhaler。 Voice soft and even。 Bilingual in French and English。 Good German。 Traces of Marseilles accent。 Smiles infrequently。 Does not laugh。
Habits此Mostly expensive察but discreet。 Large sexual appetites。 Flagellant。 Expert driver of fast cars。 Adept with small arms and other forms of personal bat察including knives。 Carries three Eversharp razor blades察in hat´band察heel of left shoe and cigarette´case。 Knowledge of accountancy and mathematics。 Fine gambler。 Always acpanied by two armed guards察well´dressed察one French察one German details available。
ment此A formidable and dangerous agent of the USSR察controlled by Leningrad Section III through Paris。
Signed此Archivist。
Appendix B。
Subject此SMERSH
Sources此Own archives and scanty material made available by Deuxi┬me Bureau and CIA Washington。
SMERSH is a conjunction of two Russian words此'Smyert Shpionam'察meaning roughly此'Death to Spies'。
Ranks above MWD formerly NKVD and is believed to e under the personal direction of Beria。
Headquarters此Leningrad sub´station at Moscow。
Its tasks is the elimination of all forms of treachery and back´sliding with the various branches of the Soviet Secret Service and Secret Police at home and abroad。 It is the most powerful and feared organization in the USSR and is popularly believed never to have failed in a mission of vengeance。
It is thought that SMERSH was responsible for the assassination of Trotsky in Mexico 22 August 1940 and may indeed have made its name with this successful murder after attempts by other Russian individuals and organizations had failed。
SMERSH was next heard of when Hitler attacked Russia。 It was then rapidly expanded to cope with treachery and double agents during the retreat of the Soviet forces in 1941。 At that time it worked as an execution squad for the NKVD and its present selective mission was not so clearly defined。
The organization itself was thoroughly purged after the war and is now believed to consist of only a few hundred operatives of very high quality divided into five sections
Department I此In charge of counter´intelligence among Soviet organizations at home and abroad。
Department II此Operations察including executions。
Department III此Administration and Finance。
Department IV此Investigations and legal work。 Personnel。
Department V此Prosecutions此the section which passes final judgement on all victims。
Only one SMERSH operative has e into our hands since the war此Goytchev察alias Garrad´Jones。 He shot Petchora察medical officer at the Yugoslav Embassy察in Hyde Park察7 August 1948。 During interrogation he mitted suicide by swallowing a coat´button of pressed potassium cyanide。 He revealed nothing beyond his membership of SMERSH察of which he was arrogantly boastful。
We believe that the following British double agents were victims of SMERSH此Donovan察Harthrop´Vane察Elizabeth Dumont察Ventnor察Mace察Savarin。 For details see Morgue此Section Q。
Conclusion此Every effort should be made to improve our knowledge of this very powerful organization and destroy its operatives。
CHAPTER 3 ´ NUMBER 007
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