The police were, of course, only interested in this man as a bigtime brothelkeeper and it was not until we expressed an interest in his finances that the Deuxième Bureau unearthed the parallel dossier which was running with their colleagues of the police department.
The significance of the situation became apparent to us and to our French friends and, in the past few months, a veritable rathunt has been operated by the police after the establishments of the Cordon Jaune, with the result that today nothing remains of Le Chiffre's original investment and any routine inquiry would reveal a deficit of around fifty million francs in the trade union funds of which he is the treasurer and paymaster.
It does not seem that the suspicions of Leningrad have been aroused yet but, unfortunately for Le Chiffre, it is possible that at any rate SMERSH is on the scent. Last week a highgrade source of Station P reported that a senior official of this efficient organ of Soviet vengeance had left Warsaw for Strasbourg via the Eastern sector of Berlin. There is no confirmation of this report from the Deuxième Bureau, nor from the authorities in Strasbourg (who are reliable and thorough) and there is also no news from Le Chiffre's headquarters there, 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, he would have no alternative but to commit suicide or attempt to escape, but his present plans suggest that while he is certainly desperate, 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 counteroperation which, though risky and unconventional we submit at the end of this memorandum with confidence.
In brief, Le Chiffre plans, we believe, to follow the example of most other desperate tillrobbers and make good the deficit in his accounts by gambling. The 'Bourse' is too slow. So are the various illicit traffics in drugs, or rare medicines' such as aureo and streptomycin and cortisone. No racetracks could carry the sort of stakes he will have to play and, if he wins, he would more likely be killed than paid off.
In any case, we know that he has withdrawn the final twentyfive million francs from the treasury of his union and that he has taken a small villa in the neighbourhood of RoyalelesEaux, just north of Dieppe, for a week from a fortnight tomorrow.
Now, 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, the Société des Bains de Mers de Royale have leased the baccarat and the two top chemindefer tables to the Mahomet Ali Syndicate, a group of émigré Egyptian bankers and businessmen with, it is said, a call on certain royal funds, 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, 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 oldfashioned wateringplace will regain some of its Victorian renown.
Be that as it may, it is here that Le Chiffre will, we are confident, endeavour on or after 15 June to make a profit at baccarat of fifty million francs on a working capital of twentyfive million. (And, incidentally, save his life.)
Proposed Counteroperation
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, that his Communist trade union should be bankrupted and brought into disrepute, and that this potential fifth column, with a strength of 50,000, capable in time of war of controlling a wide sector of France's northern frontier, 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 recommend that the finest gambler available to the Service should be given the necessary funds and endeavour to outgamble this man.
The risks are obvious and the possible loss to the Secret funds is high, but other operations on which large sums have been hazarded have had fewer chances of success, often for a smaller objective.
If the decision is unfavourable, the only alternative would be to place our information and our recommendations in the hands of the Deuxième 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: S.
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Appendix A.
Name: Le Chiffre.
Aliases: Variations on the words 'cypher' or 'number' in different languages; eg 'Herr Ziffer'.
Origin: Unknown.
First encountered as a displaced person, inmate of Dachau DP camp in the US Zone of Germany, June 1945. Apparently suffering from amnesia and paralysis of vocal chords (? both feigned). Dumbness succumbed to therapy, but subject continued to claim total loss of memory except associations with AlsaceLorraine and Strasbourg whither he was transferred in September 1945, on Stateless Passport No 304596. Adopted the name 'Le Chiffre' ('since I am only a number on a passport'). No Christian names.
Age: About 45.
Description: Height 5 ft 8 ins. Weight 18 stones. Complexion very pale. Cleanshaven. Hair redbrown, 'en brosse'. Eyes very dark brown with whites showing all round iris. Small, rather feminine mouth. False teeth of expensive quality. Ears small, with large lobes, indicating some Jewish blood. Hands small, welltended, hirsute. Feet small. Racially, subject is probably a mixture of Mediterranean with Prussian or Polish strains. Dresses well and meticulously, generally in dark doublebreasted suits. Smokes incessantly Caporals, 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: Mostly expensive, but discreet. Large sexual appetites. Flagellant. Expert driver of fast cars. Adept with small arms and other forms of personal combat, including knives. Carries three Eversharp razor blades, in hatband, heel of left shoe and cigarettecase. Knowledge of accountancy and mathematics. Fine gambler. Always accompanied by two armed guards, welldressed, one French, one German (details available).
Comment: A formidable and dangerous agent of the USSR, controlled by Leningrad Section III through Paris.
Signed: Archivist.
Appendix B.
Subject: SMERSH
Sources: Own archives and scanty material made available by Deuxième Bureau and CIA Washington.
SMERSH is a conjunction of two Russian words: 'Smyert Shpionam', meaning roughly: 'Death to Spies'.
Ranks above MWD (formerly NKVD) and is believed to come under the personal direction of Beria.
Headquarters: Leningrad (substation at Moscow).
Its tasks is the elimination of all forms of treachery and backsliding 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.