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FRONTIER HOTEL FALLS TO HUGHES.

BILLIONAIRE'S VEGAS ROLL CONTINUES!.

DOCUMENT INSERT: 1/4/68. Verbatim FBI telephone call transcript. (OPERATION BLACK RABBIT Addendum.) Marked: "Recorded at the Director's Request" / "Classified Confidential 1-A: Director's Eyes Only." Speaking: Director, BLUE RABBIT.

DIR: Good morning.

BR: Good morning, Sir.

DIR: RED RABBIT is misbehaving. He's being a very bad bunny.

BR: I've been reading the newspapers, Sir. I think he's stepped over the line.

DIR: He has, but not to the extent where he'll discredit himself finitely. He is immune to that form of censure. He is riding a wave of unjustified discontent that is bigger than any of us.

BR: Yes, Sir.

DIR: Lyndon Johnson is furious. He despises himself for the way he's coddled RED RABBIT. He knows that this wave of silly discord is partially of his manufacture.

BR: Yes, Sir.

DIR: I've planted a Negro within the SCLC. My former chauffeur, no less.

BR: Yes, Sir.

DIR: He's a sensible Negro. He despises Communists more than the white power structure.

BR: Yes, Sir.

DIR: He tells me the SCLC is in a state of great disarray. They are attempting to recruit an army of the wretched to compete with Hannibal's hordes.

BR: Yes, Sir.

DIR: They will storm our nation's capital. They will urinate and fornicate with abandon.

BR: Yes, Sir.

DIR: This display of pique will be a catastrophic disaster. It will encourage the unruly and criminally prone and give them an unprecedented license. The ramifications will be severe and nihilistically defined.

BR: Yes, Sir.

DIR: I am at my wits' end, Dwight. I do not know what more I can do.

BR: There's a counter-consensus brewing, Sir. I know you've been reading the bug transcripts.

DIR: I would define that consensus as too localized, too little, and too late.

BR: Some men are offering a bounty.

DIR: I would not be overly perturbed to see it happen.

BR: The concept is very much out there.

DIR: I would not like to be stuck with the task of investigating such an incident. I would be inclined to work for brevity and do what was best to put it behind us.

BR: Yes, Sir.

DIR: Unreasonable actions and unjustified rage serve to spark reasoned and measured responses.

BR: Yes, Sir.

DIR: I take comfort in that.

BR: I'm glad to hear it, Sir.

DIR: Is there anything I can do for you, Dwight?

BR: Yes, Sir. Could you speak to your contact and pouch me RED RABBIT's itinerary for the next several months?

DIR: Yes.

BR: Thank you, Sir.

DIR: Good day, Dwight.

BR: Good day, Sir.

DOCUMENT INSERT: 1/8/68. Pouch communique. To: Fred Otash. From: Dwight Holly. Marked: "Confldential"/"Eyes Only"/"Read & Burn Immediately."

F.O.,.

On go. Send update on PROSPECT. RED RABBIT's travel plans to follow.

READ & BURN.

D.C.H.

DOCUMENT INSERT: 1/18/68. Pouch communique. To: Dwight Holly. From: Fred Otash. Marked: "Confidential"/"Eyes Only"/ "Read & Burn Immeidately."

D.H.,.

Per PROSPECT's activities from 12/3/67 to present date.

1 - I met with PROSPECT 6 times. I continued to give him $ as advances "against future jobs." We discussed politics & PROSPECT frequently mentioned Geo. Wallace's presidential campaign, "niggers" & "the bounty on Martin Luther Coon." PROSPECT continued to press me for travel papers & as previously I stalled him. PROSPECT divided his time between his apt (1535 N. Serrano, Hollywood), the Sultan's Room at the St. Francis Hotel-Apts (Hollywood Blvd) & the Rabbit's Foot Club (appropriate!!!!) also on Hollywood Blvd. PROSPECT continued to discuss his plans to travel to Rhodesia & on 3 occasions said he might "kill Coon, collect the bounty & seek political asylum in Rhodesia."

2 - PROSPECT became involved with woman at Sultan's Room, who talked him into driving her brother to New Orleans to "pick up her friend's kids." PROSPECT told me about this & asked for travel $. I gave him $1,000 & told him I would meet him in N.0. PROSPECT & woman's brother drove to N.O. (12/15/67), arrived on 12/17 & stayed at the Provincial Motel. I met PROSPECT 3 times, gave him $ & promised future jobs. PROSPECT remained in N.O. & frequented pornographic bookstores. PROSPECT, woman's brother & 2 8-yr-old girls left N.O. on 12/19 & arrived in L.A. on 12/21.

3 - PROSPECT settled into L.A. routine. I spot-tailed him on 6 occasions & met with him on 6 more. PROSPECT visited pornographic bookstores, took hypnosis courses & told me he intended to hypnotize women into acting in porno films that he would direct. PROSPECT frequented the Sultan's Room 8e the Rabbit's Foot Club, drank habitually & habitually used amphetamines. He frequently discussed the "bounty" & his plans to "escape" to Rhodesia. During this period PROSPECT visited the office of the L.A. Free Press & placed a classified ad seeking women for oral sex. PROSPECT also purchased liquid methamphetamine at the Castle Argyle Apts (Franklin & Argyle). He routinely stays up for 2 & 3 days at a time & I have noticed recent needle tracks on his arms.

4 - PROSPECT stated (4 occasions) that his intentions are to stay in L.A. & "do jobs" for me, join a swinger's club & figure out a way to "get the bounty & shag to Rhodesia." I've started talking about the bounty & ways to get at MLK & PROSPECT has not noticed any shift in my tone or personality, because (a) he's seriously disturbed & extremely self-obsessed; (b) he's beholden to me for $ & narcotics; (c) he's strung out & impaired by his liquor & drug use.

5 - I think I can keep him in L.A. until our go-date & then get him to the spot to either participate or work the fall-back slot. We need his prints on a rifle 8e some other things, which should be easy to do.

6 - He's the guy. I'm sure of it. We're buffered on him (nobody will ever believe his "Raul" stories) & we'll never let him get into custody anyway.

READ THIS AND BURN. Pouch me if you need further updates.

F.O.

DOCUMENT INSERT: 1/21/68. Boston Globe subhead:

MARINES IN LIFE-OR-DEATH SIEGE AT KHE SANH.

DOCUMENT INSERT: 1/24/68. New York Times headline and subhead:

TET OFFENSIVE SHOCKS U.S. FORCES.

LARGEST BATTLES OF WAR RAGE.

DOCUMENT INSERT: 1/26/68. Atlanta Constitution headline:

KHE SANH--THE BLOODY SIEGE CONTINUES.

DOCUMENT INSERT: 1/27/68. Los Angeles Examiner subhead:

MASSIVE VIET BATTLES SPARK U.S. PROTESTS.

DOCUMENT INSERT: 1/30/68. Chicago Sun-Times headline and subhead:

KING CITES TET HOLOCAUST.

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