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7
INTERLOCKING SUBVERSION IN
GOVERNMENT DEPARTMENTS
APPENDIX TO
HEARINGS
BEFORE THE
SUBCOMMITTEE TO INVESTIGATE THE
ADMINISTRATION OF THE INTERNAL SECURITY
ACT AND OTHER INTERNAL SECURITY LAWS
OF THE
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE
EIGHTY-THIRD CONGRESS
FIRST SESSION
ON
INTERLOCKING SUBVERSION IN GOVERNMENT
DEPARTMENTS
PART 14
Appendix I
Printed for the use of the Committee on the Judiciary
UNITED STATES
GOVERNMENT PRINTING OFFICE
32918° WASHINGTON : 1953
Boston Public Library
Superintendent of Documents
FEB 9 - 1954
COMMITTEE ON THE JUDICIARY
WILLIAM LANGER, North Dakota, Chairman
ALEXANDER WILEY, Wisconsin PAT McCARRAN, Nevada
WILLIAM E. JENNER, Indiana HARLEY M. KILGORE, West Virginia
ARTHUR V. WATKINS, Utali JAMBS O. EASTLAND, Mississippi
ROBERT C. HENDRICKSON, New Jersey ESTES KEFAUVER, Tennessee
EVERETT MCKINLEY DIRKSEN, Illinois WILLIS SMITH, North Carolina
HERMAN WELKER, Idaho OLIN D. JOHNSTON, South Carolina
JOHN MARSHALL BUTLER, Maryland THOMAS C. HENNINGS, JR., Missouri
Subcommittee To Investigate the Administration of the Internal Security
Act and Other Internal Security Laws
WILLIAM E. JENNER, Indiana, Chairman
ARTHUR V. WATKINS, Utah PAT McCARRAN, Nevada
ROBERT C. HENDRICKSON, New Jersey JAMES O. EASTLAND, Mississippi
HERMAN WELKER, Idaho WILLIS SMITH, North Carolina
JOHN MARSHALL BUTLER, Maryland OLIN D. JOHNSTON, South Carolina
ROBERT MORRIS, Chicf Courisel
Benjamin Mandel, Director of Research
(The documents in this volume were accepted for the record by the chairman
on Wednesday, July 8, 1953.)
II
INTEELOCKING SUBVERSION IN GOVEENMENT
DEPAETMENTS
Exhibit No. 272
[From the New Leader, New York, N. T., September 28, 1940]
Communists Plan Tieup of United States War Industries Through Control
OF National Labor Board
(By Bill Harpman)
Washington, D. C. — Under cover of the war in Evirope, the creation of a
national defense program in this country, and the current presidential campaign,
the Communist Party is quietly making its bid for complete control of the
National Labor Relations Board. Through this control, it hopes to dominate the
organized labor movement of the United States ; and through this domination,
it expects to be in position to sabotage defense activities, in the interests of the
Soviet-Nazi pact, and direct the political policies of labor along lines dictated by
the Kremlin.
The immediate focus of the struggle for control of the NLRB is the vacancy
in one of the three seats on the Board, which occurred when the term of Chair-
man J. Warren Madden lapsed late in August. Control of this seat is crucial to
the Communist Party as it will give it a majority. At present the Board is the
scene of a bitter internal fight between Edwin S. Smith, trusted fellow traveler
and confidante of the Communists, and Dr. William Leiserson, who has the con-
fidence of the bona fide labor movement as loyal to our democratic institutions.
Thus, the next presidential appointment will determine the fate of the Com-
munist Party's bid for power over American Labor.
Edwin S. Smith came to Washington as the protege of Mary Van Kleeck, the
founder of the Communist-sponsored Interprofessional Association, vociferous
admirer of the Soviet regime and sponsor of the Lundeen bill, which was drafted
by the Communist Party. He associated himself with the Stalinists, .ioining
in the Communist-controlled social lobb.y in Washington and working closely
with such "party-liners" as Nathan Witt, secretary ofthe NLRB, and Thomas
I. Emerson, assistant general counsel.
Smith became a member of the executive committee of the Washington chapter
of the League for Peace and Democracy, which Earl Browder admitted to be a
Communist "transmission belt," and which was originall.v inspired and later dis-
solved by the Communist Party. In the summer of 1938, he attended 2 Com-
munist-inspired conferences in Mexico City ; he was a speaker at 2 sessions of
the International Industrial Relations Institute, organized by Mary Van Kleeck ;
and he attended the sessions of the World Congress Against War and Fascism,
at which the Communist symbol of the hammer and sickle was displayed promi-
nently and Communist speakers dominated the scene.
He was also a sponsor of two other Communist Party innocents' organizations —
the Washington Friends of Spanish Democracy and the National Conference on
Constitutional Liberties, at whose recent sessions he was one of the main speakers.
He has consistently favored the interests of the Communist wing of the CIO
both administratively and in his decisions on cases involving Stalinist-controlled
unions that have come up before the Board ; and he has aided the Connnunist
Party use the NLRB as a source of jobs for its patronage machine and to put
Communist Party stooges in key positions within the Board. His most notorious
decision was the one in the case of the longshoremen of the Pacific coast, in which
he helped to hand over to Harry Bridges, notorious leader of the Communist-
dominated International Longshore and Warehousemen's Union, control of the
members of the A. F. of L. unions in the northern Pacific ports.
This decision was so raw, and the protests of the A. F. of L. were so bitter, that
the case is again before the Board for reinvestigation. Only a short time ago,
Smith and Witt were ready to fire Elinore Herrick, at the bidding of the Stalinists,
during the Consolidated Edison case, because she refused to be partial toward
the Communist-controlled CIO union. What was at stake was the Communist
Party's drive to get a stranglehold on strategic American industries, in line with
the plans of the Soviet-Nazi pact.
929
930 INTERLOCKING SUBVERSION IN GOVERNMENT
Behind Edwin Smith is arrayed the whole of the carefully constructed Com-
munist Party apparatus in the National Labor Relations Board. At recent hear-
ings before the House committee investigating the Board, it was disclosed that
an astonishing number of its personnel were members of such Communist-domi-
nated organizations as the American League for Peace and Democracy, the
National Lawyers' Guild, and the International Juridical Association, spawn of
the Communist Party International Labor Defense. The staflBng of the Board
with members and supporters of Communist Party dominated organizations is
traceable to the activities of Smith's "brain-trusters" in the Board, Nathan Witt
and Thomas I. Emerson.
Nathan Witt, who is the secretary of the NLRB, has been a member of the
League for Peace and Democracy, the International Juridical Association, and
the Lawyers' Guild. He was one of the founders of the guild and is still an
active member despite its public repudiation by such men as Adolph A. Eerie,
Assistant Secretary of State, and Attorney General Jackson, who found it to l)e
Communist dominated.
His wife was one of the leaders of the League for Peace and Democracy and
is an active member of the League of Women Shoppers, another Communist
Party innocents' group, linked through its officers to the American Peace
Mobilization.
The associate general counsel, Thomas I. Emerson, was, like Witt, one of the
founders of the Lawyers' Guild and is today the leader of the Stalinist faction
in its Washington chapter and a member of its constitution committee. He was
also a member of the national committee of the International Juridical Associa-
tion. Mrs. Henderson [sic], better known as Bertha Paret, is a leading member
of the League of Women Shoppers. Both these men, in close cooperation with Lee
Pressman, general counsel of the CIO, energetic activist in Communist-controlled
front organizations, and ardent follower of the CP line, have filled the NLKB
with Communist Party and CIO partisans.
It has been charged by reliable authorities that Witt has asked those applying
for jobs as to their social philosophy, to make sure that they were sympathetic
to the Communist Party line. A short time ago, a key position in the new Ad-
ministrative Division of the Board was given, through the pressure of Smith
and Witt and over the protests of Leiserson, to Aaron Warner, who had been
active in the CP organized Interprofessional Association and was a member
of the Lawyers' Guild.
Last year the underground rumblings within the NLRB reached the ears of
Congress, and the House set up an investigating committee, unfortunately
manned, in large part, by labor baiters. The Communists and fellow travelers
in the Board scurried to cover until the charges were flying thick and fast. To
protect themselves, they joined with these antilabor Congressmen in attacking
the Board's chief economist, David J. Saposs, as a Communist.
Their purposes were twofold : They needed a scapegoat to deflect the at-
tacks against the CP stooges in the Board ; moreover, they wanted to drive
Saposs out of the Board as he has been a close associate of Dr. Leiserson, an
outspoken anti-Communist who has opposed the use of the Board as a CP
patronage machine. He has fought communism in and outside the labor move-
ment for many years. The alliance between the conservatives and the Commu-
nists was evident in every move of both groups. In arranging the presentation
of the Board's case before the committee, Saposs, xmlike the other keymen in the
Board, was not given the chance to present his own defense, appearing only
when called, and not to present his own case, but ratlier for hostile cross-exami-
nation. The committee not only recommended amendments to the Labor Act
but the abolition of Saposs' Division of Economic Research.
When the CIO sent an army of lobbyists to fight amendments to the act last
spring, they were ordered not to defend Saposs and his division. The work of the
"poison squads" was so effective that the well-meaning, prolabor members of
the committee. Congressmen Murdock and Healey, all but asked for Saposs' dis-
missal in their minority report. The result was that Congress made no ap-
propriation for his Division. The Board, to keep its work in order, found it
necessary to make financial provision for the Division from its general funds.
It was necessary for men like President William Green, of the A. F. of L,
David Dubinsky, of the ILGWU, and anti-Communist CIO leaders like R. J.
Thomas, of the auto workers' union, and Philip Murray, of the steel workers'
union, to come to the defense of Saposs and his Division and to clear him of the
charge of communism.
I
INTERLOCKING SUBVERSION IN GOVERNMENT 931
lu the face of such vigorous opposition, the CP commissars and their fellow-
travelers decided that their best bet. in their struugle for control of the Board,
was to press for Maddeu's reappointment, since they could not hope to get
another Edwin Smith on the Board. Madden had proven himself to be a
typical innocent, amendable to the "liberal" persuasion of the fellow travelers
and the Communist wing of the CIO. He has defended the activities of Nathan
Witt: voted in favor of Harry Bridges in the west coast longshore case; voted
to appoint Aaron Warner to the Administrative Division ; prevented a thorough
cleaning-out of Comunists from the Board ; refused to listen to those in and out
of the Board who warned him about the Communist termites around him;
and generally proven himself to be a reliable, if unwilling, tool.
The Communist backers of Madden, however, have been obscured by typical
cover-up maneuvers : John L. Lewis, whose alliance with the CP was definitely
proven by his role in the recent convention of the New York State Industrial
Union Council of the CIO, has been pressuring President Roosevelt, directly and
indirectly, for Madden's reappointment. Men like Senator Thomas, of Utah,
Daniel Tobin, of the teamsters' union, and Philip Murray, of the steelworkers,
have lent their names for the same purpose. And they have even been able to
induce Secretary of Labor Frances Perkins to join the Communist-inspired
pressure squad for the reappointment of Madden.
The remarkable thing about this lemarkable story is the fact that there is a
very real danger that these maneuvers of the Communists may succeed. Al-
though A. F. of L. President Green once made clear his opposition to Madden,
this has not been followed up, at this crucial time, when the appointment by
the President seems due very shortly. Because of his preoccupation with the
huge and vital task of defense, President Hillman, of the Amalgamated Clothing
Workers of America, has unfortunately not bothered to bring his great influence
to bear against the appointment of this Communist-sponsored candidate whose
activities would wreck the national defense program.
While the trade-union movement is busy with an election campaign for Roose-
velt and with preserving the rights of labor in the defense program of the Na-
tion, it is overlooking a vital sector of labor's interests in the control and proper
operation of the NLRB. On the other hand, however, the Communists have been
very active as they know that this is a world of pressure-politics and that if they
can divert the country's attention with spurious slogans of peace and civil liber-
ties to cover up their un-American activities, they will be able to win the struggle
for control of the Board.
Obviously, the issue goes beyond the NLRB, for this is but a vital part of a
larger conspiracy on the part of Moscow's Communist Party to penetrate and
control our Government agencies, our labor movement and our strategic peace and
war industries.
This is of a piece with the Communist penetration of the American merchant
marine through the domination of the National Maritime Union led by Joe Cur-
ran ; their penetration of the American communications system through the
dominance of the American Communications Association ; their increasing pene-
tration of the transportation system and the Government service.
The stakes in this conspiracy are the organization of active Communist sabo-
tage of our defense.
Whether the Communists will be able to do this depends upon whether the
labor movement and the New Deal administration will awaken in time to this
menace. The first test is at hand in the Communist bid for control of the Na-
tional Labor Relations Board through the reappointment of Madden.
Exhibit No. 273
List of National Research Project Published Reports by Indhiduals Ap-
pearing AS Witnesses or Named in Testimony Before the Senate Internal
Security Subcommittee
A list of the Project's published reports appears below. These publications
have been reviewed for statistical and economic analysis by Edmund J. Stone,
assistant to the director, and edited and printed under his direction.
GENERAL
Unemployment and Increasing Productivity, by David Weintraub assisted by
Harold L. Posner, Report No. G-1, March 1937. Prepared for the National Re-
sources Committee report, Technological Trends and National Policy.
932 INTERLOCKING SUBVERSION IN GOVERNMENT
The Research Program of the National Research Project, by Irving Kaplan,
Report No. G-2, August 1937. ( P. 2. )
Summary of Findings to Date, March 1938, by David Weintraub and Irving
Kaplan, Report No. G-3, March 1938.
Effects of Current and Prospective Technological Developments Upon Capital
Formation, by David Weintraub, Report No. G-4, March 1939. Also published
in the American Economic Review, volume XXIX, No. 1 (March 1939), supple-
ment.
STUDIES IN TTPES AND RATES OF TECHNOLOGICAL CHANGE
Manxifacture
Industrial Instruments and Changing Technology, by George Perazich, Her-
bert Schimmel, and Benjamin Rosenberg, Report No. M-1, October 1938. Pre-
pared under the supervision of George Perazich.
Mechanization in the Bx'ick Industry, by Alfred J. Van Tassel and David W.
Bluestone, Report No. M-2, June 1939. Prepared under the supervision of
George Perazich.
Mechanization in the Cement Industry, by George Perazich, S. Theodore Woal,
and Herbert "Schimmel, Report No. M-3, in press. Prepared under the super-
vision of George Perazich.
Industrial Research and Changing Technology, by George Perazich and Philip
M. Field, Report No. M-4, in press. Prepared under the supervision of George
Perazich.
Mechanization in the Lumber Industry, by Alfred J. Van Tassel, Report No.
M-5, in press. Prepared under the supervision of George Perazich (with assist-
ance of D. W. Bluestone ) , 1940. ( P. 3. )
STUDIES IN PRODUCTION, PRODUCTTVirY, AND EMPIX>YMENT
Mmiufacture
Production, Employment, and Productivity in 59 Manufacturing Industries,
1919-36, by Harry Magdoff, Irving H. Siegel, and Milton B. Davis, Report No.
S-1, May 1939. Prepared under the supervision of Harry Magdoff. (P. 4.)
Minmg
Technology, Employment, and Output per Man in Petroleum and Natural-Gas
Production, by O. E. Kiessling, H. O. Rogers, G. R. Hopliins, N. Yaworski, R. L.
Kiessling, J. Brian Eby, Lew Suverdrop, J. S. Ross, R. E. Heithecker, W. B.
Berwald, Andrew W. Rowley, M. A. Schellhardt, Richard Sneddon, Boyd Guthrie,
Herbert Schimmel, and J C. Albright, Report No. E-10, July 1939. Conducted
in cooperatiop with the United States Department of the Interior, Bureau of
Mines, and prepared under the supervision of O. E. Kiessling, (P. 6.)
Agriculture
Selective Factors in an Expanding Labor Market : Lancaster, Pa., by Edward
J. Fitzgerald, Report No. L-4, June 1939. (P. 7.)
Farm-City Migration and Industry's Labor Reserve, by Francis M. Vreeland
and Edward J. Fitzgerald, Report No. 1^7, August 1939, (P. 8.)
Exhibit No. 274
United States Atomic Energy Commission,
Washington 25, D. C, June 30, 1953.
Hon. William E. Jenner,
Chairman, Internal Security Subcommittee.
Dear Senator Jenner: Reference is made to your letter of May 14, 1953,
requesting personal history statements, personnel security questionnaires, stand-
ard forms 57, and other forms of this nature tilled out by or for David Hawkins
and Philip Morrison. I understand that Mr. William Mitchell, our General
Counsel, and Mr. Edward Trapnell, Special Assistant to the General Manager,
have discussed with you and Mr. Morris, of the subcommittee's staff, the Com-
mission's reasons for proposing that the subcommittee be furnished with excerpts
from all available forms of the type in which the committee is interested
pertinent to information requested on those forms as to Communist affiliations.
Our proposal was prompted by the following considerations: (1) We regard
personnel security questionnaires as privileged documents which should be held
INTERLOCKING SUBVERSION IN GOVERNMENT
933
confidential in the interests both of fairness to the individual and proper conduct
of our security program. (2) Hawlcins and Morrison were not Government
employees, but rather were employees of Manhattan district contractors during
the period in question. (3) Some of the documents of the type in which the
subcommittee is interested were obtained from Morrison and Hawlvins by their
private employers for their personnel flies. We understand that you aiid Mr.
Morris indicated that the subcommittee is primarily interested in information
requested on these forms pertinent to Communist afhliations, and we trust that
this manner of making the information available to the subcommittee will be
satisfactory.
First, with respect to Dr. Hawkins :
(1) On May 8, 1943, Hawkins executed a Manhattan engineer district per-
sonnel security questionnaire, for his employment by the University of Cali-
fornia on the atomic energy pro.1ect. This form did not contain any direct
questions relating to Communist associations, but item 14 of this questionnaire
did require listing of membership in organizations. This item, as Hawkins
filled in the form, is set forth below :
"14. Membership in organizations: (List all organizations of which you are
or have been a member since 1930).
Name
Character
Address
Years
member
American Federation of Teachers, Local 349.. _
American Federation of Teachers, Local 442...
Professional trade union..
do
Berkeley, Calif
Palo Alto, Calif
Berkeley, Calif
1938-39
1940-41
Pi Mu Epsilon (Berkeley chapter)
Local professional-.
1943-
(2) On the same date. May 6, 1943, Hawkins filled out and executed an "em-
ployee's declaration" on a form entitled "Application for United States of
America — Personnel Security Questionnaire." This form had an explanatory
paragraph reading as follows :
"UNITED STATES OF AMERICA — PERSONNEL SECURITY QUESTIONNAIRE
"To enable the employer to discharge its obligations under the espionage and
national defense statutes, and regulations thereunder, the following facts are
submitted for the information of the Government of the United States. This
questionnaire is not intended to cast doubt upon the loyalty of any citizen of
the United States, but, on the contrary, is intended to establish mutual confi-
dence among loyal war workers by obviating any suspicion which might be cast
upon them, and by making as diflicult as possible the employment of agents of
foreign governments who by subversive and sabotage tactics might endanger such
loyal workers and the work under performance."
The form was reciuired by the University of California, apparently for its
personnel records, and perhaps as the basis for obtaining data for typing up
the MED personnel security questionnaires for their employees' signatures. Only
one item on this form has any bearing upon Communist associations, and this
item is here quoted in its entirety as filled out by Hawkins.
"Membership in organizations (list all organizations of which you are or have
been a member since 1930. State name, character, type or kind of organization
such as athletic, business, fraternal, labor, military, musical, political, profes-
sional, religious, social, trade, vocational, etc.) :
Name (e. g., Sigma Xi, Local No. 1)
American Federation of Teachers, Local 349.
American Federation of Teachers, Local 442.
Pi Mu Epsilon, University of California
Character (profession,
trade, etc.)
Professional trade union.
do
Local— professional
Address of organi-
zation
Berkeley, Calif.
Palo Alto, Calif
Berkeley, Calif-
Years a
member
(19— to — )
1938-39
1940-41
1943-
With respect to Dr. Mon-ison :
(1) On May 29, 1943, Morrison executed an "Information form for Govern-
ment Employees" in connection with his employment by the University of
Chicago's Metallurgical Laboratory which was working on the IMED project.
Items 6 (a) and (h) of this form are significant from the standpoint of your
934
INTERLOCKING SUBVERSION IN GOVERNMENT
subcommittee's interest. Tliese items, as tlie form was filled out by Morrison,
are excerpted in full below :
"6. Associations:
"a. Are you or have you ever been a member of any political party or organiza-
tion which now advocates or has ever advocated overthrow of the constitutional
form of government in the United States? No.
(Yes or No)
"If yes, give details :
"Name of organization Dates of membership Position held
"h. List all clubs, societies, trade unions, associations, religious affiliations, or
any type of organization with which you have been connected in any way what-
ever. (Give addresses and indicate whether you are now connected with such
organization.) In addition to those given in 5g:^
"American Physical Society, 175 5th Avenue, New York — now member.
"American Federation -of Teachers, New York — no longer member.
"University Assistants and Readers, Berkeley, (ialif. — no longer member.
"American Student Union, New York — no longer member."
(2) On October 28, 1944, Dr. Morrison executed an MED Personnel Security
Questionnaire, item 14 of which is excerpted below :
"Membership in organizations (list all organizations of which you are or have
been a member since 1930) :
Name
Sigma Xi -.
Phi Beta Kappa
American Federation of Teachers.
American Student Union..
National Student League
Character
Academic.
do
Labor
Student.-.
do
Address
New York.
do
do
Years
member
1940-
1940-
1937-41
1935-39
1934-35
(3) On the same date, October 28, 1944, Dr. Morrison executed a "Personnel
Security Questionnaire, United States of America," similar to the second form
described above with respect to Dr. Hawkins, which was required by the Univer-
sity of California, apparently for its personnel records. The only item on this
form i)ertinent to the question of Communist affiliation is that concerning "mem-
bership in organizations," which is excerpted below in full :
"Membership in organizations: (List all organizations of which you are or
have been a member since 1930 — fraternal, labor, business, political, etc.).
Name
Sigma Xi
Phi Beta Kappa
American Federation of Teachers.
American Student Union
National Student League
Type of organization
Academic.
do
Labor
Student.. -
do
Address
New York.
.....do
do
Term of
member-
ship
1940-
1940-
1937-41
1935-39
1934-35"
"(4) On August IG, 1947, Dr. Morrison executed an Atomic Energy Com-
mission personnel security questionnaire in connection with his employment by
the University of California. Item 16 is the only item pertinent to Communist
affiliations and is excerpted in full below :
^ Item 5 (g) lists scholastic, honorary, and professional fraternities.
INTERLOCKING SUBVERSION IN GOVERNMENT 935
"IG. All Organization Membership — Name, Address, Type (Inclusive dates and
any office held) :
"Federation American Science, Educational, Washington, D. C. (Member National
Administration Commission) 1945 to date
"Sigma Xi, Academic, 1940 to date
"Phi Beta Kappa, Academic, 1940 to date
"American Federation Teachers, Labor, New York, N. Y., 1937^1
"American Student Union, Student, New York, N. Y., 1935-39
"National Student League, Student, New York, N. Y., 1934-35."
Incidentally, the AEC's personnel security questionnaire in use at that time
was revised several years ago and now contains a nimiber of items designed to
elicit direct responses concerning membership in Communist, fascist, totalitarian,
and subversive organizations.
Both Morrison and Hawkins also signed an a^davit of loyalty to the Con-
stitution of the United States of America. These were, we understand, obtained
by their employer, the LTniversity of California, pursuant to INIED requirements.
a" copy of this form is attached hereto for your information.
In your letter of May 14. you also ask whether any unpublished AEC reports
had, by July 1949, identified in specific terms liquid metals which might be used
as a coolant in a reactor. The Smyth Report, Atomic Enei'gy for Military Pur-
poses, an MED publication published in 1945, referred to molten bismuth as a
liquid metal coolant planned for use in a production reactor in 1942. A very
detailed examination of possible coolants was declassified by the AEC prior to
September 1947, when this material was published as part of volume I of The
Science and Engineering of Nuclear Power, by Clark Goodman.
Sincerely yours,
Gordon Dean,
Chairman.
Affidavit of Loyalty to the Constitution of the
United States of America
The undersigned certifies that he is a citizen of the United States of America,
that he does not advocate, and Is not a member of any political party or organ-
ization which advocates the overthrow of our constitutional form of government
in the United States of America.
Date
Name
Badge No
Exhibit No. 275
ToLAN Committee*
* * * The recent report of the Tolan committee to the House of Representa-
tives, on October 20. proposes a completely centralized national administration of
industry and manpower, working upon a single plan for victory in the war. Its
proposals are embodied in the Kilgore-Pepper bill in the Senate and the Tolan
bill in the House. The committee bluntly declares that "our war effort is in
jeopardy," that "this war can be lost in Washington," if such a central admin-
istration is not established. The committee is composed of conservative Demo-
crats and Republicans, with not a "left-winger" among them. Indeed, Congress-
man Bender of Ohio, supporting the report, complains that ".some points are not
made strong enough." And Mr. Bender, leader of the old-line Republican Party of
his State, is a confirmed anti-New Dealer, but clearly moved by one single con-
sideration— patriotism, the will to victory in the war, which he sees is in grave
danger unless the Tolan committee proposals are adopted and carried out
energetically.
Indeed, the Tolan committee proposals are truly national, and deserve the
support of capital equally with that of labor, of the farmers equally with that
of the small industrialists, businessmen and middle classes. It shows the only
1 One Year Since Pearl Harbor (address delivered in Detroit, November 12, 1942), by Earl
Browder ; volume XXI, No. 11, December 1942, The Communi.st — A Magazine of the Theory
and Practice of Marxism-Leninism, editor : Earl Browder.
32918°— 53 — pt. 14 2
936 INTERLOCKING SUBVERSION IN GOVERNMENT
way in which our economy can be mobilized to meet the strains of all-out war
without a breakdown * * * (pp. 978-979.)
*******
* * * Such proposals as those in the Kilgore-Pepper and Tolan bills must be
supported by all, whether they are adopted by the Executive or by Congress
(p. 979).
*******
Exhibit No. 276
ToLAN Committee*
In the third interim report of the Tolan committee I do find the heart of the
whole problem stated very sBai-ply, clearly, succinctly. I want to read a para-
graph of the Tolan report because it stands out in current literature on war
ec-onomics like a veritable i>earl. Here is the quotation :
"There is no phase of our economic life which can be unessential in total war.
Every phase must be planned, must be guided, must be brought under central
administrative control. Total war requires that our vast economic system be
operated along the organizational lines of a single industrial plant. Under con-
ditions of maximum war production, everyday market relationships virtually
disappear."
The present confusions, lags, bottlenecks, and breakdowns in the war produc-
tion are in the largest part a result of failure to realize this central truth stated
in the Tolan report and to draw the necessary conclusions. * * * In the words
of the Tolan committee report, it is literally true that for maximum war pro-
duction every phase of the national economy must be planned, must be guided,
must be brought under administrative control ; that everyday market relation-
ships virtually disappear (p. 796).
* * * * * * *
It is an extremely interesting question why, among all the Government
agencies concerned with one phase or another of the national economy, why was
it the Tolan committee which came most directly to the heart of the whole
national economic problem? The answer undoubtedly is that just because the
Tolan committee was basically charged with the study of the limited piioblem of
the migration of labor, it unerringly was directed, by the nature of its special
job, to the heart of the general problem (p. 797).
*******
* * * Unfortunately we do not have the latest results of the Tolan com-
mittee investigation, which are not yet printed. They would be most valuable
because they cover the first months of the official war period, whereas the
figures I am going to recite are for the latter part of 1941 ; but we already know
that there has been no change in the general outline of facts as revealed in the
Third Interim Report of the Tolan Committee (p. 798).
Exhibit No. 277
Persons Mentioned in the Berle Memo September 5, 1939, Who Participated in
THE Preparation of American Postwar Foreign Policy, According to the
State Department Publication, Postwar Foreign Policy Preparation,
1939-45
Hiss, Alger : Attended meetings of subcommittee on territorial problems, of the
advisory committee ; alternate member, policy committee ; appointed Special
Assistant to the Director of the Office of Special Political Affairs ; attended
meetings preparatory to Dumliarton Oaks Conference; member, agenda group;
alternate member, armament committee ; menfber of committee to allocate officers
to work on the basic instrument of the general international organization prepara-
tory to the Dumbarton Oaks Conference ; responsible for developing administra-
tive arrangements for Dumbarton Oaks; executive secretary, American group
Dumbarton Oaks ; present at preconference briefing, Dumbarton Oaks ; executive
2 Thp Economics of All-Ont War, b.v Earl Browder (speech delivered at the New York
State Convention of tlie Communist Partv at ^lanhattan Center, New York City, August
20, 1042) : volume XXI, Xo. 0, October 1042, the Communist Magazine of the Theory and
Practice of Marxism-Leninism, editor, Earl Browder.
INTERLOCKING SUBVERSION IN GOVERNMENT 937
" secretary of executive secretariat of American group at Dumbarton Oaks ; sec-
retary in international capacity, Dumbarton Oalis meeting of lieads of Great
Britain, Russia, and United States ; secretary, steering committee, Dumbarton
OalvS ; attended meetings for drawing up plans for a general international organ-
ization ; member of committee preparing for Crimea Conference ; attended meet-
ing of the interdepartmental committee on dependent area aspects of international
I organization as State Department representative ; accompanied President to
Yalta ; in charge of an-angements for United Nations Conference at San Fran-
cisco; secretary, informal organizing group on arrangements for the Sau
Francisco Conference.
Coe, V. Frank : Listed as a representative at meetings of the interdepartmental
group to consider postwar international economic problems and policies, repre-
senting the Treasury Department. Attended meetings of the American Technical
Committee representing the Foreign Economic Administration. Alternate
member of the informal policy committee on Germany.
Currie, Lauchlin : Listed as a representative at meetings of the interdepart-
mental group to consider postwar international economic problems and policies
representing the Executive Office of the President. Member for work on economic
problems of the advisory committee; member, committee on postwar foreign
economic policy ; member, executive committee on economic foreign policy.
Duggan, Laurence : Member, advisory committee ; member, subcommittee on
political problems ; member, departmental committee on political planning ;
chairman, area committee for Latin America of committee on special studies;
member, policy committee.
Wadleigh, H. Julian : Participated in various meetings of Interdepartmental
Group to consider Post-War International Economic Problems and Policies ; 1941,
economic studies largely on long-range problems of lend-lease ; research secretary
for Subcommittees, Economic Reconstruction and Economic Policy : attended
meetings of Territorial Problems Subcommittee when problems In his field arose ;
secretary, Taylor committee; Assistant Chief of economic branch of research
staff ; Assistant Chief, Division of Economic Studies.
ExHiisiT No. 278
[From the Saturday Evening Post, March 12, 1949]
Here's Wheee Oub Young Commies Are Trained
(By Craig Thompson)
Do you imagine that all the youthful dupes of United States Reds
are embittered misfits from underprivileged families? Then this
article, telling how and where American youngsters are taught con-
tempt for their country, will enlighten you— and shock you.
It takes more than a party card to transform the eager-beaver malcontents the
Communist Party attracts into the tireless mischief-makers the party w^ants.
Knowledge of how to manipulate twilight sleepers like Henry Wallace, when to
attempt to wreck a man's business or what justifies treason does not come
naturally — even to Communists. These things have to be taught. To teach
them, the Communists have set up a chain of schools scattered across the United
States.
The biggest school is in New York. It fills four floors of a gaunt yellow-brick
building at 575 Avenue of the Americas, diagonally across the intersection of
16th Street from a Jesuit college, and it is called the Jefferson School of Social
Science — "A People's University of Progressive Character."
The Jefferson school annually enrolls 3,000 students — a fraction of the total
signed up by the national chain, which stretches from Boston to the California
Labor School in San Francisco, and includes establishments in Chicago, Phila-
delphia, Newark, Cleveland, and other localities. Formerly some of these were
identified by such names as the Abraham Lincoln, Walt Whitman, or Samuel
Adams Schools, but after being listed as subversive by the United States Attor-
ney General's office, they seem to have gone underground. All are part of what
the CommunLst Daily Worker describes as a "continuing process of reci-uiting
and training new youthful forces for leadership within the Communist Party."
Or, as one callow recruit phrased it : "The party will take anybody. You don't
have to know anything to join — after you join they send you to school."
938 INTERLOCKING SUBVERSION IN GOVERNMENT
It is as easy to enroll in the Jefferson School as to enter a neighborhood movie
house. There are no scholastic requirements. The only questions asked are
name, place of employment, and trade-union affiliations. The fees are low — .50
cents to a dollar for individual forum lectures, and $7.50 for courses of 10.
Special discounts are given to party groups and members of party affiliates such
as the American Youth for Democracy. Once enrolled, the neophyte is plunged
into a strange and, for some, exhilarating atmosphere of open conspiracy. Every-
one speaks and acts on the assumption that everyone else is already a Communist
or about to become one. People who, elsewhere, will go to jail rather than admit
being party members here openly proclaim it.
Recently, I sent a student into the Jefferson School. She was a young woman
researcher who could take shorthand notes. She attended classes and talked to
other students, setting down what she learned in a series of reports which run to
thousands of words and are the substance of this article.
The hallmark of Communist enterprises is squalor — a stage prop to induce
more and bigger money gifts from its dupes — and the Jefferson School bears the
approved stamp. Peeling paint hangs from its walls, the floors are bare and
scuffed, the furniture nicked and rickety and the windows gray with grime.
The student roster is by no means limited to doltish fledglings sent by the party
cells. Although the school does lean heavily on the party machinery for its
pupils, it also uses advertisements and articles in the party press and word-of-
mouth promotion in legitimate universities. Communist-front groups, and imion
halls. Pressurized proselytizing which stresses slogans such as "You are invited
to examine the Marxist approach," or "Socialism having become a science must
be pursued as a science, it must be studied," seems to have a hypnotic attraction
for boys and girls in the honest universities. The result is that a majorit.v of the
students, far from being union toughs, imported bomb tossers, or hardened social
wreckers are, instead, run-of-the-mine young Americans between 17 and 25 years
old. No more than half of them are card-carrying Communist Party members.
Considered collectively, these eager, shiny-eyed boys and girls furnish solid
proof that United States communism is roping in its new puppets by catching
them in their teens. It is a safe bet that if the parents of some of them knew
what their children are up to, many a comfortable middle-income home would rock
with horrified parental thunder. But the kids are too deeply engrossed in plot-
ting the class struggle to care. Later on. as they learn more about Communist
reality, some will change their minds and withdraw. Meanwhile it seems only
fair to give them the same protection the law gives juvenile criminals by with-
holding their full identities.
All of them are afflicted with the discontent of youth and, basically, it is this
that makes communism acceptable to them. But a more complete analysis of a
group of 8 revealed 8 subvarieties of discontent. John was a stupid boy in
search of self-importance ; Ruth, a girl in revolt against "reactionaries" ; Claire,
a bright girl keeping up with her Communist husband ; Arthur, an adventurous
boy in search of action; Larry, a brilliant boy in search of i)ower ; Margery, an
emotional stargazer in search of an antidote to poverty ; Joe, an angry laborer
in search of a weapon to use against his bosses ; and Sella, a girl of Syrian
parentage who felt she was a victim of racial discrimination.
The 8 were among the 23 students — 14 of them college kids — who signed up
for a course called Principles of Marxism, I, which Alan Max, managing editor
of the Daily Worker, conducted in a shoe-box shaped room on the fourth floor.
Max is h loose-limbed 6-footer, about 40, with a thin, sallow face. His teaching
method was the usual routine of lecture and questions, but he was merciless in
heaping scorn or ridicule on those who did not have the right answers and he
had a flair for converting wrong answers into quick, effective illustrations of
Communist tactics. He deftly demonstrated the technique of the propaganda
lie, for example, when a boy suggested that communism had its early roots in the
teachings of Christ.
"Look," Max cut in harshly, "it's all right to make a claim before a congres-
sional committee for propaganda purposes. It sounds good to compare com-
munism with Christ for people like that. But we're here to examine this thing
scientifically."
Although much of what passed for instruction in this group was carried
on in the mumbo-jumbo patter of the Marxian cultists, when Max laid down the
party line on Henry Wallace, he did it in a language everybody could under-
stand.
"Today," he said, "the line-up is really between the camp of democracy rei>
resented by the Soviet Union, and the camp of fascism, capitalism and war
INTERLOCKING SUBVERSION IN GOVERNMENT 939
represented by the United States. Even people who are not consciously in this
fight are particii)ating in it. What they do will depend on the experiences they
go through. The Couununists have the job of shaping these exijeriences, and
that is being done through a mass movement — the third party.
"Don't thinlv Henry Wallace has any great love for the Communists. He
knows that without us he would have no third party. But if we go out today
and ask for socialism, we would get nowhere. Therefore we have to support
Wallace. The organization of the third party is but the first step. Altliough
AVallaee is the leader of the party, he is not important. It is the building of
the party that is important. What must l)e done is to enroll the support of the
workers. One of Wallace's assets is his ability to attract the middle class.
But Communists are interested in fulfilling their job through the workers and
the trade unions. If the unions play an important role in it, the Communists
will gain through them."
The self-importance-seeking .John interrupted with a question, "Doesn't W^al-
lace want nationalization of industry?"
"Just what Wallace means I don't know," Max replied. "He thinks progressive
capitalism can do the.se things. Where the industries were nationalized in
England, it was done to rook the people. This was not so in Russia.
'•Of course, Wallace is not the third party. His program is not the program
of the party. Wallace will not come to power. Where the Communists and
Wallace get together is on the program of monopolies, fascism, and war. This
is the basis for the united front between liberals and Communists. The job of
the Communist Party now is to press forward in the third party."
Those who heard Max's forthright deliverance of the party orders on Wal-
lace— far more baldly and frankly stated than any directive that has appeared
in the Daily Worker — received it as a reward for patience. Max held it back
until the last night of his 10 weeks' course, and by that time the class had shaken
down to its diehard core of 8. Some of those who dropped out were repelled
by Max's cynicism, some rejected communism, and others defaulted for lack of
time and energy.
The amount of time-consuming activity the party apparatus demands of its
youngsters is appalling. The school functions as one of the interlocking party
fronts, part of a system by which various Communist-inspired enterprises lend
their members to one another for picket lines, mass demonstrations, political
rallies, and fund solicitation.
Claire, the girl who had married a Communist, casually revealed the frequency
of the calls when she matter of factly observed, "I only see my husband about 12
hours out of a whole week."
Actually all this activity is a part of Communist training. In capturing a
labor union or any other organization, the method is to infiltrate with a trusted
group willing to work long hours, take on any job nobody else wants, attend all
meetings, outwait the opposition in order to shove through resolutions after
the majority has gone home, and to keep at it until control is gained. Obviously
any convert who is not willing to give what it takes while the experience is new
will not do it later on. The party shakes them out early.
The school's main empha.sis is on "Marxist theory." which is a code phrase
for "tactics," but it also has classes to "provide unionists and other progressives
with the theory and facts for solution of their problems." Some New York labor
bosses, long accustomed to playing footsie with the Communists in their unions,
have lately begun to take a very dim view of the Jefferson School's instructional,
demonstrational, conspiratorial activity.
In October 1946, Department Store Employee, the newspaper of the CIO De-
partment Store Employees Local Union 12.")0, announced that 40 members of the
local had been enrolled in the Jefferson School for a special study of strikes and
the "most effective methods to use on stubborn employers." Some time later the
methods became apparent when demonstrations of as many as 1,000 persons
began creating disturbances before several large department stores. While some
stores bought newspaper space to shout that they were innocent of ill will toward
unions, customers stayed away in droves.
What the customers did not understand was that the fight was not between
stores and union, but a drive by Communists to destroy the non-Communist lead-
ership of the CIO United Retail, Wholesale, and Department Store Employees
International Union. The international had filed non-Communist affidavits re-
quired by the Taft-Hartley Act and called on the locals to follow suit. By
bringing pressure on the stores, the Communists hoped to force them into the
lineup against the international's leadership. The campaign was met by drastic
940 INTERLOCKING SUBVERSION IN GOVERNMENT
anti-Red action on the part of the CIO, but it did succeed in splitting the inter-
national. The victims were the hapless stores, and the tactics the kind that
causetl erstwhile fellow-traveling Mike Quill, of the Transport Workers Union,
to couple the name of the JefEerson School with that of a labor lawyer whom be
called "stinko, pinko Harry Sacher * * * the leftwing banker-lawyer with the
elevator shoes." Mr. Sacher is a Jefferson School trustee.
The school's board of trustees contains two real professors — Margaret Schlauch.
of New York University, and Dirk J. Struik, of the Massachusetts Institute of
Technology — and its chairman, Lyman R. Bradley, only recently became an ex-
professor of New York University. He was let go after a contempt conviction
for refusal to testify about the Joint Anti-Fascist Refugee Committee, another
Communist front. Howard Selsam, trustee and directoi', is another ex-profes-
sor. He taught philosophy at Brooklyn College, but lost his .job there when a
backsliding colleague named him as a campus Communist. Other trustees are
Robert W. Dunn, an inveterate fellow traveler and formerly on the editorial
board of the magazine Soviet Russia Today; Harry Sacher; Doxey Wilkerson.
formerly of Howard University and a member of the Communist Party national
committee; Nathan Witt, a lawyer who has figured prominently in the Commu-
nist news ; and Ruth Young, an official of the United Electrical, Radio and IMa-
chine Workers Union, CIO, and a delegate to the Communist national convention
in 1945. The board's treasurer is Alexander Trachtenberg, Communist national-
committee member and head of the party's book-publishing "concern. Its secre-
tary is Frederick Vanderbilt Field.
In such company Mr. Field is an oddity — a man of wealth. His money comes
from his great-great-grandfather. Commodore Cornelius Vanderbilt, and much
of it seems to be going to the Communists. A New York building of which he is
part owner — at 23 West 26th Street — is a warehouse of Communist-front groups,
including such notable ones as the American Committee for Protection of the
Foreign Born ; the Council on African Affairs ; the Veterans of the Abraham Lin-
coln Brigade ; and the Committee for Democratic Rights. When these or any of
the other fronts which tenant his building give fund-raising dinners, Mr. Field
can be counted on to buy not one plate at a paltry $7.50, but 10 or even 20. When
the Jefferson School was projected, he subscribed thousands to get it going.
To top Communist leaders, the idea of milking such willing providers while
working for the revolution which will destroy them presents no problems of con-
science. It does, however, to some of the party's small fry. Joe, the one bona
fide worker in Max's class, an angry, shaggy, thunder-browed type, explored the
subject with Max.
"How," he demanded, "can the party take in capitalist millionaires as mem-
bers? These people are the exploiters of the workers, and yet the party welcomes
them. I worked in a factory owned by a woman, tremendously wealthy. She
exploited us workers. But she was a card-holding Communist Party member.
Here she was, supposedly espousing the cause of the worker, yet exploiting him
at the same time."
Max replied, "I don't know of any Communist Party members who, by their
wealth, discredit the Communist Party cause. Sure, there are some who are
wealthy by a matter of inheritance who are Conmiunist Party members. But they
contribute large donations to the party and represent no serious threat to the
worker ; there's no danger the millionaires will take over the Communist Party."
In the Jefferson School, the word "revolution" is rarely used, but underlying
everything the school teaches is the basic doctrine that someday the United
States will undergo a bloody upheaval in which the Communists will seize power.
The inevitability of revolution was described by Max as the "third law'' of
Marxian historical materialism. Realistically, however, he taught his pupils
that in the United States this desirable event is far off and that meanwhile the
first duty of communism is to build up strength to shape the experiences of the
people. To some of his pupils this program seemed too slow, and Arthur, an ad-
venturous boy who wanted immediate action, put their thoughts into questions.
"The New Deal," he said, "was not progressive at all, and I want to know why
the Communist Party supported it."
Max: "Was there nothing progressive about unemployment insurance?"
Artiitir: "I can't answer that question in those terms. What I want to know
is why we supported it when we knew it would not achieve our ends? It only put
off the crisis that much longer."
j\Iax : "You want to know why the Communists did not vote with the reac-
tionaries?"
Arthur : "I know it sounds awful, but it would have achieved our ends quicker.
Now only God knows how long it will be."
INTERLOCKING SUBVERSION IN GOVERNMENT 941
JIax : "Didn't the Wagner Act help build the working class? Didn't it aid
the Communists to build their class? The working class does not become more
powerful by becoming disorganized. The workers have first to oi'ganize their
strength, which takes a number of years."
Outtalked, but unconvinced, Arthur shot back, "The Communist Party is con-
trolled by intellectuals. The workers do not believe in the Communist cause.
They have to be shown."
This was a frightful heresy, and it produced some fascinating verbal scurry-
ing when the session ended. Arthur's two closest pals in class were John and
Larry. All three were students at the College of the City of New York, where
Larry had proved himself bright enough to get halfway through before he be-
came old enough for steady shaving. When the class ended, Larry cornered
Arthur and began, in a quiet but determined manner, to argue him out of his
heretical notion. Meanwhile John collected a half dozen other students and made
an impromptu speech.
John was a zoot-suited toothpick chewer who identified himself as the or-
ganizer in a Communist Party group in Brooklyn. He had the natural equip-
ment of a nwnor functionary in any political party — the habitual half-whisper
which made what he said sound like a confidence, the determination to explain
and extol every policy handed down from above.
He said, "If the Communist Party were to support some of these reactionary
measures to make the people suffer, they would all turn against it. We have
to keep the people on our side all the time, so that when the crises fomes we
can step right in and take over. Our present program is proving very successful.
It's true that during the war we lost some ground, especially in the United Auto
Workers, but that was because George Addes just didn't employ the right tactics.
But the party's tactics are correct now. We're getting more and more members
every day. Why, this is the first year in ages when the party has been able to
pay its organizers like me regular weekly salaries."
When he finished, the three boys went out together, arm in arm. The picture
of these kids debating the best method of seizing the United States would have
been comic but for one thing. At some future time any one of them might be
in a position to steal top-secret documents from his Government, and be willing
to do it.
The atmosphere of the Jefferson School subtly created and steadily encouraged
blind loyalty to Soviet Russia. Every mention of the United States was one of
poisoned criticism, and every allusion to the Soviet paradise was one of sweetened
adulation.
In such surroundings it was easy to carry ideas to dangerous depths of tor-
tured logic. "Now let's get on to this war in the making," Max opened on one
occasion. "The United States is out to destroy the only Socialist state in the
world, though they might call it a war of prevention."
Arthur, the sometime heretic, leaped at the opening. "Yes," he said, "the rea-
son for the hysteria against the Soviet Union is that it is a Socialist state. There-
fore what we would have would be an imperialist war by the United States and
a war of national defense on the part of the Soviet Union. World War II was a
war of imperialism on the part of the Allies, but the Soviet Union fought a war
of national liberation."
"Well," Max queried, "you're against imperialism. Why did you fight in it?"
"The only reason was that the Soviet Union was attacked," Arthur said, and
was rewarded with a beam of approval.
A belief like that is all a man needs to justify treason.
The presence of the girl who gathered the material for this article in Alan
Max's class was wholly accidental. His was only 1 of 20 theory courses given
each term, and she chose it solely because it fitted most conveniently into her
crowded schedule. Talks with other students and experience in other classes
convinced her that it was representative, and, more to the point, all its pupils had
similarly had their choice of classes dictated by convenience. Thus, its core of
eight die-hards is actually a random sampling of young United States Commu-
nists, and this fact, taken with other evidence, permits some generalities to be
drawn.
For one thing, the prevalent belief that the Communist movement relies mainly
on embittered social misfits seems to need revision. Of the 8, only 2 — Joe, the
worker, and the Syrian girl Sella — could be so classified. Two others did have
a background of poverty, but they were not yet embittered misfits. The remain-
ing four — Arthur, Larry, Ruth, and Claire — all came from secure, comfortable
homes.
942 INTERLOCKING SUBVERSION IN GOVERNMENT
Some time back, when I had just returned from a 2-year stay in Russia, I was
invited to dinner in the home of a friend, a well-lcnown and successful physician.
His son, a college student, was present and asked a continuous string of questions
about the Soviet Union. The answers made him turn glum, then surly and, being
too well bred to insult his father's guest, he abruptly left us.
With a half-apoldgetic show of indulgence, his father remarked, "I think my
boy has swallowed a good many leftist ideas." Indulgence is natural in parents,
but I know my friend reacts with violent anger to the kind of "leftist ideas" the
Jetferson School teaches. Yet his son could have been Arthur, Larry or any one
of several hundred boys there.
What is it that enables communism to entice and entrap young United States
citizens"/ The eight bitter-enders in Max's class provided an answer. Every one
of them enlisted originally because he believed communism offered the promise
of a better way of life. .
Margery, an emotional girl from a poor, lower-East Side tenement, stated their
faith in flaming words : "It is a whole way of life, all-encompassing. It is the
study, movement and means whereby a whole new society will be achieved."
John was equally emphatic. "To me, the organization of the Soviet state is
the most wonderful thing the world has ever seen."
By now it would seem that the 30-year development of the Soviet system in
Russia has proved to everyone that this is the biggest myth in the Soviet propa-
ganda arsenal. But the lie still finds people to believe it, and communism, en-
couraging blind hatred toward all who deny the myth, insulates its victims
against truth and reason. Sella, the Syrian girl, was a sample of what Jeffer-
son School indoctrination can do.
She said. "I've been going to night classes at Hunter College for the past 2
years. I was going to major in history, but I've got so disgusted with the lying
propaganda in the courses that I've given up the idea."
To the uninitiated, the facade of higher learning the Jefferson School maintains
can be deceptive. Its catalog is studded with high-altitude offerings such as
philosophy of history, logic and scientific method, or problems of philosophy.
Even philosophy of art becomes Communist preachment: "The struggle for great
art * * * is the struggle for a society in which exploitation of man by man does
not exist." A closer inspection reveals that many of these courses are dropped
without ever being begun. Of 68 listed instructors, only a comparative handful
actually carry the teaching load. This working group includes not only admitted
Communists like Doxey Wilkerson, Howard E. Johnson, educational director of
the New York County Communist Party, and Alan Max, but a greater number
of professionally trained teachers who, like Selsam, were dropped by New York's
educational system for alleged Communist affiliations.
While they wait and work for the revolution, the boys and girls of the Jeffer-
son School will not sing too publicly of their alma mater. The proper attitude
was summed up in one question and answer.
"Say," a student asked, "does the Jefferson School give you a diploma when
you finish?"
"Who would you show it to," Max snapped back, "your employer?"
Exhibit No. 279
[From the Communist, June 1938]
Mauxism-Leninism foe Society and Science
A TEAK OF science AND SOCIETY : A CRITIQUE
(By V. J. Jerome)
*******
In looking over the first year's work of Science and Society, we find no indi-
cation of struggle against Trotskyism ; no heed to the serious tasks of analyzing,
exposing and counteracting this embodiment of counterrevolution and treachery,
with its pseudo-philosophical trappings. And this, during a year in which the
great Soviet trials and convictions and that momentous Stalinist document,
Mastering Bolshevism, demonstrated clearly the need and the method of
directing the attack against such masked enemies with vigor and foresight; a
year in which the I'eople's Front in Spain branded and outlawed the Trotskyite
POUM as a helpmate to Franco behind the lines ; a year during which the liberal-
INTERLOCKING SUBVERSION IN GOVERNMENT
943
intellectual world, Science and Society's world, was being contaminated with
confusion in regard to these issues. In connection with the Marxist-Leninist
strugirle against Trotskyism, there reigns an unfortunate silence in Science and
Society. Indeed, the so-called Marxist Quarterly, which is in reality a camp
cirgan. has escaped without a word of criticism.
But the struggle against Trotskyism is a central task that falls on the editors
in their work of promoting the principles of Marxism-Leninism. I'recisely in
Ihe colleges, one of the main stamping grounds of Trotskyism, where the Hooks
niul the Burnhams hold court, Science and Society has its work to do. Cer-
tainly, in America academic spheres, where students and faculty members have
been trained to look up to John Dewey, it is expected of a magazine like Science
and Society to counteract the pernicious influence which the aura of his bygone
hheralism "may exert in behalf of Trotskyism. The magazine could make a
.special contribution in this connection by showing that it is not accidental that
the foremost exponent of instrumentalism, with its fundamental renunciation of
theory and its denial of the class struggle as an objective fact, should branch out
in defense of counterrevolutionary Trotskyism ; in fact, of any violent opposi-
tion to the organizers of the inevitalde victory of socialism.
It must be said that Science and Society has so far not been able to fulfill
this important Marxist task. It has, in its own specific field, failed to point out
the danger signs in connection with pragmatist-instrumentalism, the dominant
American bourgeois philosophy, which, precisely because of its alleged progres-
sivism, offers an opportunity for philosophic charlatans to adulterate Marxism
for the lienefit of the bourgeoisie.
What are the principal reasons for this? We can trace them to the magazine's
basic weakness. By and large, the contributions evidence a detachment from
the scene of proletarian practice; from contemporary, economic, social, and
political currents. This is evidenced by the tendency to a recession from the
present which characterizes the range of topics and, in the main, their treatment.
This is not said in any depreciation of the value of historical research, but, on
the contrary, in the interests of bringing the study of the past into a closer
dialectical relationship with present-day life.
A number of the articles, well-reasoned, logical, basically correct, could have
gained in validity and persuasiveness through integration with the dynamics
of current events. One looks at the table of contents in the four issues. The
subjects, in articles and communications, range themselves as follows :
Philosophy 13
Political economy 2
History 3
Political theory 3
Colonial problems 1
Psychology 1
Mathematics 1
Linguistics 2
Religion 2
Literature and art 4
Although one welcomes the considerable inclusion of philosophic articles ; and
while noting, too, that this table must be read with allowance for overlappings,
one must register uneasiness at the scarcity of articles dealing — yes, in the
manner behooving Science and Society — with the most vital issues in the world
today. Should not such a publication rather demonstrate that Marxism as a phil-
osophy is at one with ilife, with moving events ; the theory and the practice — the
theory because of the practice — of the working class? Marxism for Marx was
never a doctrine isolated from the movements of his day — from the revolutions
of 1848, the Paris Commune, the struggle of Poland for liberation, the socialist
and trade union movements, the conditions of the working class, the development
of the Party, the struggle against anti-proletarian elements as well as their
theories. It would be well if the magazine in its future issues presented Marxism
in its living unfoldment. This would result in a more concrete application of
Marx's method to the economic, political, and theoretical phases of the class
struggle in the world today. Such problems as the dialectics of democracy ;
the nature, origin, and development of classes in the United States ; the Marxist-
Leninist theory of the state in relation to the government of the People's Front ;
in addition to the problems of modern natural science in connection with
the economic structures and the productions relations of the world of capitalism
and the world of sociali.sm — would, if adequately ti-eated, in the specialized man-
ner called for by Science and Society, do much to carry out the basic purposes of
the magazine, thereby widening its important sphere of influence.
It would be interesting to see a dialetic treatment of the entire range of de-
velopment of the movement for independent political action of the American
working class. Here is a ta.sk for some of the contributors who have demon-
?291S°
-pt. 14-
944 INTERLOCKING SUBVERSION IN GOVERNMENT
strated by their careful scholarship their capacity to make a valuable Marxist
contribution in regard to the American scene.
It is the tendency to abstraction which is no doubt responsible for the silence
of the magazine in regard to the Soviet Union, the touchstone of all political and
theoretical positions today. Outside of an article on lingiiistics and, in a sense,
the discussion of heritage, not a single treatment of any phase relating to the
socialist achievements in the Soviet Union. Yet the visible transformation of so-
ciety and the individual in the new Socialist Republic, as registered In the
great Stalinist Constitution of socialist democracy ; the vanguard role of the
Soviet Union in relation to progressive humanity, as seen in its policy and strug-
gle for peace — surely, such topics are worthy of a few pages in Science and
Society.
A segment of the world is being remade, galvanized, under our eyes. A new
humanity in birth, a new economy, a new culture, new mores, a new psychology,
a new social practice — 20 years of victorious Soviet power; 20 years of empirical
proof of the correctness of the Marxist-Leninist theory which, in this land, the
Communists are advancing against all opponents as the program for the Ameri-
can people. And in the Marxian magazine. Science and Society, not a single
article (but for the exceptions noted) dealing with the existence of the Soviet
Union — the living embodiment of the Marxian objective.
These serious omissions result from insufficient emphasis that Leninism is the
only Marxism today; that Stalin embodies the theory and practice of Marx,
Engels, and Lenin, developed and rendered concrete in the present epoch of the
struggle of the two worlds. Such emphasis would, of necessity, immediately bring
to the fore who the actual enemies of Marxism are today and how to fight those
enemies. The understanding that the promotion of Marxism means the struggle
for Marxism would of necessity involve the realization of the party nature of
philosophy ; that implicit in ^larxism is the vanguard party of the pro-
letariat— the Communist Party; that the revolutionary content of Marx and
Engels was restored and developed only there where bolshevism as a pai-ty came
into being in the historic split with Menshevism ; that the victory of Marxism
in Russia was made possible because of the presence of the IVLarxist-Leninist
Party as guardian, guide, and rallying force of all the exploited and oppressed,
through increasingly heightened levels of struggle and class consciousness toward
the victorious climax of socialism.
We have stated earlier, and we wish to reaffirm at the conclusion, the consid-
erable achievements of the magazine, its auspicious beginnings, and the hopeful
prospects for its realization of the purposes the editors have set for it. On the
basis of its efforts and of its realizations to date. Science and Society is deserving
of the fullest support of the Communist Party and of all progressives.
We have brought these criticisms and suggestions, not without awareness of
the difficulties surrounding the editing of such a magazine ; not without aware-
ness of the social and psychological factors which make it hard for academic
scientists and scholars, who constitute the majority of the contributors, to
develop and come forwai-d as definitive exponents of Marxism ; not without
awareness of the impossibility of achieving completely the objectives in the space
of 1 year of the magazine's existence.
But the very emergence of Science and Society implies 'a conscious purpose to
transform science into an instrument for refashioning society. So it is fitting
to remember Lenin's counsel to the editors of the similarly purposed Soviet
periodica]. Under the Banner of Marxism; that "a magazine'that desires to be
an organ of militant materialism must be a militant organ."
Exhibit No. 280
National Research Project
The National Research Project of the Works Progress Administration was
set up by WPA Administrator Harry L. Hopkins in October 1935 for the purpose
of collecting and analyzing data bearing on the problems of unemployment and
relief. David Weiiitraub and 'Irving Kaplan were appointed respectively as
director and associate director of the project.
"The task set for them was to assemble and organize the existing data which
bear on the problem and to augment these data by field surveys and analyses.
INTERLOCKING SUBVERSION IN GOVERNMENT 945
'To this end, many irovernmental agencies which are the collectors and re-
►sitories of pertinent information were invited to cooperate. The cooperating
igeneies of the United States Government include the Department of Agricul-
ture, the Bureau of Labor Statistics of the Department of Labor, the Bureau
3f Mines of the Department of Interior, the Railroad Retirement Board, the
Social Security Board, the Bureau of Internal Revenue of the Department of
the Treasury, the Department of Commerce, the Federal Trade Commission, and
the Tariff Commission.
"The following agencies also joined with the National Research Project in
conducting .special studies : The Industrial Research Department of the Uni-
versity of Pennsylvania, the National Bureau of Economic Research, Inc., the
Employment Stabilization Institution of the University of Minnesota, and the
Agricultural Economics Departments in the Agricultural Experiment Stations of
California, Illinois, Iowa, and New York."
After September 1, 1939, NRP was sponsored by the National Resources
Planning Board, Execurive Office of the President. (Source: The Work and
Publications of the WPA National Research Project on Reemployment Oppor-
tunities and Recent Changes in Industrial Techniques, p. 1.)
Exhibit No. 281
United States Department of Agkictjltube
agkicultukal adjustment administration, washington, d. c.
Returned from PCB 1/19/35
Approved for P7
Employee entered upon new duties ;
Date : October 29, 1934
Recommendation to the Secretary :
Vacancy : Position No. 10S06, Journal No. 123, approved by President, February 2,
1935.
Action requested : Change in Grade and Designation Involving Promotion, Sec-
tion 10a, Title I, Public No. 10, 73d Congress.
Name : John J. Abt.
State : Illinois.
Date of Birth : May 1, 1904.
Classification : Fr : P-6 To : P-7,
Designation : Fr : Chief Attorney To : Special Attorney.
Salary : Fr : $6,000 To : $6,500 per annum less deductions of $ for.
Appropriation : Salaries <& Expenses, Agricultural Adjustment Administration,
Symbol No. 3X017-104-99-001.
Cooperative Employment : None.
Name and Salary of Predecessor: Fr : Sheet No. 2491, P-6-3o, To: Sheet No.
3506. New Position.
Headquarters : Washington, D. O.
Date elfective : Feb. 8, 1935.
Period : Indefinite.
To Report in : Person.
Reasons (Including statement of education, training, and experience for appoint-
ment, reinstatement, transfer, etc.) :
Since November 22, 1933, ]Mr. Abt has been serving in this Administration, his
last designation l)eing that of Chief Attorney, at $6,000 per annum, in the Litiga-
tion Section of the Office of the General Counsel. It is now proposed to assign
him to the position of Siiecial Attorney, at $6,500 per annum, in the same Section,
to be effective as soon as possible.
Under general direction, Mr. Abt will act as Chief of the Litigation Section,
by directing all work ; consider all requests for the institution of court proceed-
ings for the enforcement of licenses and marketing agreements under the Agri-
cultural Adjustment Act, and codes under the National Industrial Recovery Act
which are under the jurisdiction of the Secretary of Agriculture; assign personnel
to conduct litigation and supervise the conduct of all such litigation ; advise with
the Department of Justice with respect to matters of policy in the conduct of liti-
946 INTERLOCKING SUBVERSION IN GOVERNMENT
gation ; advise in tlie drafting of administrative orders, regulations, and amend-
ments to the Agricultural Adjustment Act with special reference to matters which
affect or may involve litigation; have entire charge of the preparation of trial
and trial of important cases ; take personal charge of cases in which it will be
necessary to defend attacks upon the constitutionality of the Agricultural Adjust-
ment Act and the National Industrial Recovery Act, as well as administrative
actions taken in connection therewith, such as licenses, orders made by Control
Committee, etc. ; also be in charge of and try important suits brought by licensees
and others against the Secretary of Agriculture to enjoin the enforcement of the
Agricultural Adjustment Act or licenses issued thereunder ; prepare briefs for
use in the trial courts and in the appellate and supreme courts in special cases ;
supervise the preparation of briefs by attorneys in the Litigation Section ; and
perform related work that may arise.
Mr. Abt received his Ph. B. degree from the University of Chicago in 1924 and
his J. D. degree from the same school in 1926. From 1927 to 1929 he was employed
by the law firm of Levinson, Becker, Frank, Glenn & Barnes, Chicago, at $4,500
per annum ; from 1929 to 1931 was a partner in the firm of Bachrach & Abt ; and
from 1931 to 1933 was a member of the firm of Sauenschein, Berksaw, Lautmann,
Levinson & Morse, Chicago, at $6,000 per annum.
C. C. Davis, Adinmistrator.
Exhibit No. 282
Securities and Exchange Commission,
Regional Office,
Neiv York, N. Y., FcJirunry 25, 1936.
Mr. Harry L. Kinneae,
Chief Clerk, Works Progress Administration, Washington, D. C.
Dear Mr. Kinnear: I received your letter of February 19, 1936, upon my return
to Washington last week.
You state that my retirement record has been received from the Department
of Agriculture showing that I was suliject to the retirement act at the time of
my appointment in the Works Progress Administration and that it is, there-
fore, incumbent iipon you to start making retirement deductions commencing
March 1, 1936. You further suggest that I confer with the Payroll Department
with a view to making application for deposit of the amount not deducted from
June 26, 1935, to February 29, 1936.
I am of the opinion that the retirement deduction is not applicable to me at
the present time. I was not in the classified civil service during my employment
by the Department of Agriculture but was subject to the retirement deduction
solely by reason of the fact that I was an employee in the Office of the Solicitor
of Agriculture. Section 693 of title 5 of the United States Code makes the re-
tirement deduction applicable separately to (a) employees in the classified
civil service, and (b) employees of the offices of the solicitors of the several
executive departments. Subsection (d) of the same section makes the retirement
deduction applicable to "unclassified employees transferred from classified posi-
tions." However, it does not make the deduction applicable to unclassified em-
ployees of the offices of the solicitors of the executive departments who are sub-
sequently transferred to unclassified positions. In other words, the statute
makes a distinction lietween the case of a classified employee transferred to an
unclassified position and the case of an unclassified employee who originally
held a position specifically made subject to retirement deductions but who was
subsequently transferred to an unclassified position. Inasmuch as my case falls
within the latter category, I am of the opinion that the retirement deduction is
not applicable to me. '
I shall be glad to discuss the matter with you further upon my return to
Washington. I have been temporarily loaned by Mr. Hopkins to do some si^ecial
work with the Securities and Exchange Commission, but shall probably be
making frequent trips to Washington.
Very truly yours,
John .7. Ai?t,
Assistant General Counsel, Works Progress Administration.
INTERLOCKING SUBVERSION IN GOVERNMENT
947
Exhibit No. 283
United States Civil Service Commission,
Service Record Division,
Washington 25, D. C, July 1, 1953.
statement of federal service
Notice to individuals — Tliis record should be preserved — Additional copies
of service histories cannot be furnished due to limited personnel in the Com-
mission. This record may be presented to appointing officers for their inspection.
Name: White, Harry D.
Date of birth : October 29, 1S92.
Authority for original appointment (Examination from which appointed or
other authority — Executive Order, Law, or other exemption) : 49 Statute 200,
Act of June 16, 1933.
Effective date
Nature of action
Position, grade, salary, etc.
June 20,1934
Oct. 4, 1934
Oct. 5,1934
Oct. 31,1934
Nov. 1,1934
Apr. 1, 1936
July 1, 1937
Mar. 25, 1938
Jan. 1, 1939
Mar. 1, 1940
Aug. 5, 1941
Jan. 1, 1942
Jan. 23,1945
Jan. 24,1945
Apr. 30,1946
E .xcepted appointment
Resignation without prejudice.
Excepted appointment (Tarifl Act of
1930, Sec. 331).
Resignation without prejudice.
Excepted appointment (E. O. 6756,
6-28-34).
Promotion
Promotion...
Promotion
Promotion
Promotion
Additional designation (Sec. 513 of Rev.
Act of 1934). .
Classification (Ramspeck Act and
E. O. 8743. Rated eligible on Form
375).
Resignation (To accept a presidential
appointment as Assistant Secretary).
Presidential appointment (Title 31,
Para. 143, U. S. Code).
Resignation (In order to take up new
duties as U. S. Executive Director of
the International Monetary Fund).
Economic Analyst, $5,700 per annum. Treasury,
OlTice of Secretary, Washington, D. C.
Special Expert, Chief Economic Analyst, P-6,
$5,600 per annum, U. S. Tariff Commission,
Washington, D. C.
Principal Economic Analyst, $5,600 per annum.
Treasury, Division of Research and Statistics,
Washington, D. C.
Assistant Director, $0,500 per annum.
Assistant Director, P-7, $7,500 per amium.
Director, Monetary Research, P-7, $8,000 per
aimum.
$8,500 per annum.
$9,000 per annum.
Assistant to the Secretary (Dir. of Monetary
Research). No co.npensation.
Assistant to the Secretary and Director of Mone-
tary Research P-8, $9,000 per annum. Treasury,
Division of Monetary Research, Washington,
D. O.
Assistant Secretary of the Treasury, $9,000 per
annum. Treasury, Office of the Secretary,
W^ashington, D. C.
A. M. Deem,
Chief, Audit Section.
The above tran.script of service history does not include all salary changes,
intra-agency transfers within an organizational unit not involving changes from
one official heiadquarters or duty .station to another, and promotions or demo-
tions, since Federal agencies are not required to report all such actions to the
Commission.
Exhibit No. 284
Treasury Department,
Telegraph Office,
Applcton, Wis., June 9, 193^.
Dr. Jacob Vineb,
Office of the Secretanj, Treasury Department:
Will be very glad to come and work with you.
H. D. White.
948 INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 285
Tbeasttry Depabtment
inter office communication
March 25, 1938.
To : Mr. Harper.
From : Mr. Thompson.
Will you please have a letter prepared for the signature of the Secretary
appointing Harry D. White as Director of Monetary Research at a base salary
of .'?8,000 per annum, payable from the appropriation, Exchange Stabilization
Fund, effective as of March 25, 1938.
The position of Director of Monetary Research was established by Treasury
Department Order No. 18, approved by the Secretary March 25, 1938.
Exhibit No. 286
July 1, 1935.
Mr. Harry D. White,
Priti. Economic Analust at $5,600 per annum, EBGSR, Division of Research
d Statistics.
Sir : By direction of the Secretary, your appointment for emergency work has
been continued without change in designation or salary, effective July 1, 1935, for
such period of time as your services may be required on such work and funds are
available therefor, but not to extend beyond June 30, 1936.
Respectfully,
(Signed) J. E. Harper,
Chief, Division of Appointments,
Secy's List, 6-29-35.
Exhibit No. 287
July 1, 1937.
Mr. Harry D. White,
Assistant Director at $6,500 per annum, EBGSR, Division of Research and
Statistics. ^
Sir: You are hereby transferred, promoted, and appointed, effective July 1,
1937, an Assistant Director, P-7, in the Division of Research and Statistics, with
compensation at the rate of seventy-five hundred dollars per annum, payable
from the appropriation, "Exchange Stabilization F^ind."
Very truly yours,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
Exhibit No. 288
October 1, 1936.
Mr. Habby D. White,
Principal Economic Analyst at $5,600 per annum, EBGSR,
Division of Research and Statistics.
Sir: You are hereby promoted and appointed for emergency work, effective
October 1, 1936, an Assistant Director, EO 17, in the Division of Research and
Statistics, with compensation at the rate of sixty-five hundred dollars per annum,
payable from the appropriation, "Exiienses, Emergency Banking, Gold Reserve,
and Silver Purchase Acts, 1937," for the duration of the work, but not to extend
beyond June 30, 1937.
By direction of the Secretary:
Very truly yours,
Oath:
(Signed) Wm. H. McReynolds,
Administrative Assistant to the Secretary.
INTERLOCKIXG SUBVERSION IN GOVERNMENT 949
Exhibit No. 289
Exhibit No. 290
Decembek 28, 1938.
Mr. Harry D. White,
Director of Monctarij Research, Treasury Department.
Sir: Your compensation as Director of Monetary Research is hereby increased
from $8,000 to $8,500 per annum, payable from the Exchange Stabilization Fund,
effective January 1, 1939.
Very truly yours, .
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
950 INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 291
Makch 25, 1938.
Mr. Harby D. White,
Washington, D. C.
SiK : You are hereby appointed effective March 25, 1938, Director of Monetary
Research in the office of tlie Secretary, with compensation at the rate of $8,000
per annum, payable from the appropriation, "Exchange, Stabilization Fund."
Very truly yours,
(Signed) H. Mokgenthau, Jr.,
Secretary of the Treasury.
Oath : This is to be carried as a transfer ; oath was not taken.
Exhibit No. 292
March 1, 1940.
Mr. Harry D. White,
Director of Monetary Research,
Treasury Department.
Sir : Your compensation as Director of Monetary Research is hereby increased
from $8,500 to $9,000 per annum, payable from the Exchange Stabilization Fund,
effective as of this date.
Very truly yours,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
Exhibit No. 293.
August 5, 1941.
Mr. Harry D. White,
Director of Monetary Research,
Treasury Department.
Sir : Under the provisions of section 513 of the Revenue Act of 1934 you are
hereby appointed an Assistant to the Secretary with compensation at the
rate of $9,000 per annum, payable from the appropriation "Exchange Stabiliza-
tion Fund," effective August 5, 1941.
You will continue as Director of Monetary Research in charge of the Divi-
sion of Monetary Research and in addition will perform such other duties as
may be assigned to you from time to time.
Very truly yours,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
August 14, 1941.
Exhibit No. 294
Mr. Harry D. White,
Assistant to the Secretary,
Treasury Department.
Sir : By letter of August 6 to Hon. Henry C. [sic] Wallace, chairman of the Eco-
nomic Defense Board, I informed him of my intention to designate you as my
alternate on the Economic Defense Board, subject to his continuing approval,
as provided in Executive Order No. 8839 of July 30, 1941, establishing the
Board.
Such approval having been given, I now hereby designate you to represent
the Treasury Department as my alternate on the Board. A copy of Executive
Order No. 88.39, setting forth the purposes and functions of the Board is at-
tached for your information.
Very truly yours,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
INTERLOCKING SUBVERSION IN GOVERNMENT 951
Exhibit No. 295
[From the Federal Register, Vol. C, No. 149, August 1, 1941, pp. 3823-3824]
The President
Executive Order
establishing the economic defense board
By virtue of tbe authority vested in me by the Constitution and statutes of the
United States, by virtue of tlie existence of an unlimited national emergency, and
for the purpose of developing and coordinating policies, plans, and programs
designed to protect and strengthen the international economic relations of the
United States in the interest of national defense, it is hereby ordered as follows :
1. The term "economic defense." whenever used in tliis Order, means the con-
duct, in the interest of national defense, of international economic activities in-
cluding those relating to exports, imports, the acquisition and disposition of
materials and commodities from foreign countries including preclusive buying,
transactions in foreign exchange and foreign-owned or foreign-controlled property,
international investments and extensions of credit, shipping and transportation
of goods among countries, the international aspects of patents, international com-
munications pertaining to commerce, and other foreign economic matters.
2. There is hereby established an Economic Defense Board (hereinafter referred
to as the "Board"). The Board shall consist of the Vice President of the United
States who shall serve as Chairman, the Secretary of State, the Secretary of the
Treasury, the Secretary of War, the Attorney General, tbe Secretary of the Navy,
the Secretary of Agriculture, and the Secretary of Commerce. The Chairman
may, with the approval of the President, appoint additional members to the Board.
Each member of the Board, other than the Chairman, may designate an alternate
from among the officials of his Department, subject to the continuing approval of
the Chairman, and such alternate may act for such member in all matters relating
to the Board.
3. In furtherance of such policies and objectives as the President may from
time to time determine, the Board shall perform the following functions and
duties :
a. Advise the President as to economic defense measures to be taken or func-
tions to be performed which are essential to the effective defense of the Nation.
b. Coordinate the policies and actions of the several departments and agencies
carrying on activities relating to economic defense in order to assure unity and
balance in the application of such measures.
c. Develop integrated economic defense plans and programs for coordinated
action by the departments and agencies concerned and use all appropriate means
to assure that such plans and programs are carried into effect by such depart-
ments and agencies.
d. Make investigations and advise the President on the relationship of economic
defense (as defined in paragraph 1) measures to postwar economic reconstruc-
tion and on the steps to be taken to protect the trade position of the United
States and to expedite the establishment of sound, peacetime international
economic relationships.
e. Review proposed or existing legislation relating to or affecting economic
defense and, with the approval of the President, recommend such additional legis-
lation as may be necessary or desirable.
4. The administration of the various activities relating to economic defense
shall remain with the several departments and agencies now charged with such
duties but such administration shall conform to the policies formulated or
approved by the Board.
5. In the study of problems and in the formulation of programs, it shall be the
policy of the Board to collaborate with existing departments and agencies which
perform functions and activities pertaining to economic defense and to utilize
their services and facilities to the maximum. Such departments and agencies
shall cooperate with the Board in clearing proposed policies and measures in-
volving economic defense considerations and shall supply such information and
data as the Board may require in performing its functions. The Board may
arrange for the establishment of committees or groups of advisers, representing
two or more departments and agencies as the case may require, to study and
develop economic defense plans and programs in respect to particular commodi-
ties or services, geographical areas, types of measures that might be exercised,
and other related matters.
32918°— 53— pt. 14 4
9^2 INTERLOCKING SUBVERSION IN GOVERNMENT
6. To facilitate unity of action and the n>aximiim use of existing services and
facilities, each of the following departments and agencies, in addition to the de-
partments and agencies represented on the Board, shall designate a responsible
officer or officers, subject to the approval of the Chairman, to represent the depart-
ment or agency in its continuing relationships with the Board : The Departments
of the Post Office, the Interior, and Labor, the Federal Loan Agency, the United
States Maritime Commission, the United States Tariff Commission, the Federal
Trade Commission, the Board of Governors of the Federal Reserve System, the
Securities and Exchange Commission, the National Resources Planning Board, the
Defense Communications Board, the Office of Production Management, the Office
of Price Administration and Civilian Supply, the Office for Coordination of Com-
mercial and Cultural Relations Between the American Republics, the Permanent
Joint Board on Defense, the Administrator of Export Control, the Division of
Defense Aid Reports, the Coordinator of Information, and such additional de-
partments and agencies as the Chairman may from time to time determine. The
Chairman shall provide for the systematic conduct of business with the foregoing
departments and agencies
7. The Chairman is authorized to make all necessary arrangements, with the
advice and assistance of the Board, for discharging and performing the responsi-
bilities and duties required to carry out the functions and authorities set forth in
this Order, and to make final decisions when necessary to exjyedite the work of the
Board. He is further authorized, within the limits of Such fxmds as may he
allocated to the Board by the President, to employ necessary personnel and make
provision for the necessary supplies, facilities, and services. The Chairman
may, with the approval of the President, appoint an executive officer.
Franklin D. Roosevelt.
The White House,
July 30, 1941.
[No. 8839]
[F. R. Doc. 41-5597 ; Filed, July 31, 1941 ; 11 : 20 a. m.]
Exhibit No. 296
AUGTTST 6, 1941.
Hon. Henry C. [sic] Wallace,
Chairman, Economic Defense Board,
Washington, D. G.
My Dear Mr. Chairman: I propose, subject to your continuing approval,
as provided in the Executive order establishing the Economic Defense Board,
to designate Mr. Harry D. White, assistant to the Secretary, as my alternate on
the Board.
Sincerely yours,
(Signed) H. Morgenthau, Jr.
Exhibit No. 298
Department of State,
Washington, September 30, 1941.
Mr. Harry D. White,
Assistant Secretary of the Treasury,
Treasury Department, Washinyton, D. C.
My Dear Mr. White: It is a pleasure to inform you that the Government of
Cuba has indicated to the Department its satisfaction with the naming of
yourself and Messrs. Eddy and Spiegel, of the Treasury, and Messrs. Walter R.
Gardner and George B. Vest, of the Board of Governors of the Federal Reserve
System, as a technical mission in compliance with its request for assistance
in connection with monetary and banking questions. Your assignment to this
mission is conse(]|uently effected in accordance with the letter of the Secretary
of the Treasury of September 25, 1941.
You will act as chief of the mission and direct the work of its other members.
The Cuban Government has been informed that the mission will arrive in
Habana during the first week in October. Upon your arrival there you should
report to the Honorable George S. Messersmith, Ambassador of the United
INTERLOCKING SUBVERSION IN GOVERNMENT 953
States to Cuba, who will introduce you to the appropriate Cuban oflficials.
Tlie mission will be responsible to Ambassador Messersmith, and j'ou should
ulttaia his approval of any informal recommendations involving questions of
policy which the mission may propose to make to the Cuban officials. Formal
recommendations should be prepared for transmittal to the Cuban Government
through the Department of State.
I wish you a pleasant journey and every success in the mission.
Sincerely yours,
Sumner Wells,
Under Secretary
(For the Secretary of State).
Exhibit No. 299
October 12, 1942.
The United States Civil Service Commission,
Washington, D. C.
Gentlemen: Transmitted herewith is recommendation for the classification
of Harry D. White, under the Ramspeck Act and section 1 of Executive Order No.
8743, as an assistant to the Secretary and Director of Monetary Research, P-S, '
at $9,000 per annum, in the Division of Monetary Research.
Classification is to be effective January 1, 1942.
Very truly yours,
T. F. Wilson,
Director of Personnel.
By A. McLane,
Exhibit No, 300
Tp.easury Department
interoffice communication
February 25, 1943.
To : Dr. Harry White.
From : Secretary Morgenthau.
Effective this date, I would like you to take supervision over and assume full
responsibility for Treasury's participation in all economic and financial matters
(except matters pertaining to depository facilities, transfers of funds, and war
expenditures) in connection with the operations of the Army and Navy and the
civilian affairs in the foreign areas in which our Armed Forces are operating
or are likel.y' to operate. This will, of course, include general liaison with the
State Department, Army and Navy, and other departments or agencies, and
representatives of foreign governments on these matters.
In the above connection, you will, of course, keep Under Secretary Bell advised
Avith respect to all matters affecting gold, coins, coinage, currency, or rates of
exchange. You will also consult with Mr. Paul or Mr. Luxford and Mr. Pehle
in all matters which come within the jurisdiction of the Foreign Funds Control.
O. K., H. M., Jr. [written notation].
Exhibit No. 301
United States Treasury Department, Washington, D. C.
personnel recommendation, page 1C604
January 27, 1943.
To Director of Personnel :
Name: White, Harry D.
From : Division of Monetary Research
Nature of Recommendation : Classification under Ramspeck Act and E. O. 8743.
Effective: January 1, 1942.
Position : Asst. to the Secy, and Dir. of Monetary Research
Grade: P-8
Salary: $9,000 per annum
954 INTERLOCKING SUBVERSION IN GOVERNMENT
Bureau or Div. : Div. of Monetary Research
Headquarters : Washin^on, D. C.
Post of Duty : Washington, D. C.
Appropriation Allotment : Exchange Stabilization Fund
Field (Q) Deprtmtl. (X)
Civil Service or other legal authority : C. S. C. File No. 3-3, dated Jan, 23, 1943.
Appropriation : ESFR.
Date of birth : 10-29-1892.
Legal residence : *Maryland.
Sex: M.
Subject to Retirement Act ? Yes.
Remarks : *Legal residence changed from Wisconsin to Maryland.
David White,
(Bureau or Divisioti Head).
Exhibit No, 302
June 17, 1943.
The honorable the Secretart of State.
My Dear Mr. Secretary: This is in reply to your letter of June 11, 1943,
asking that I designate a representative from this Department to serve as a
member of the Interdepartmental Committee for Economic Policy in Liberated
Areas.
I am designating Mr. Harry D. White to serve as Treasury representative on
that committee.
Sincerely yours,
(Signed) H. Morgenthau, Jr.
Exhibit No, 303
May 31, 1943.
Hon. Reid F. Murray,
House of Representatives,
Washington, D. C.
My Dear Mr. Murray : This is in reply to your letter of May 13, 1943, addressed
to Mr. Theodore F. Wilson, Director of Personnel, in which you request a
complete personnel record of Mr. Harry D. Wliite, Assistant to the Secretary.
Mr. White attended Stanford University and received the degrees of bachelor
of arts and master of arts fi-om that institution. He also received the degree of
doctor of philosophy from Harvard University.
Prior to entering the Federal service, Mr. White served 6 years as an instructor
in economies at Harvard University, Cambridge, Mass., and 2 years as professor
of economics at Lawrence College in Wisconsin.
Mr. White was appointed an economic analyst in the Office of the Secretary of
the Treasury, effective June 20, 1934. He resigned from this position on October
4, 1934, and from that date until November 4, 1934, was employed by the Tariff
Commission. On November 5, 1934, Mr. White was appointed principal economic
analyst in the Division of Research and Statistics, Treasury Department. He
was promoted to Assistant Director of Research and Statistics, effective October 6,
1936, and held that position until March 25, 1938, when he became Director of
Monetary Research. On August 30, 1941, Mr. White was given the additional
title and duties of an Assistant to the Secretary.
Mr. White's present duties include responsibility for the work of the Division
of Monetary Research, for the management and operation of the Stabilization
Fund, and for all matters with wliich the Treasury Department has to deal
having a bearing on foreign relations. He also serves as alternate for the
Secretary and Treasury representative with various intergovernmental and inter-
departmental boards and committees.
Very truly yours,
(Signed) W. N. Thompson,
Administrative Assistant to the Secretary.
INTERLOCKING SUBVERSION IN GOVERNMENT 955
Exhibit No. 304
July 17, 1944.
Hon. Frances P. Bolton,
Committee on Forek/n Affairs,
House of Representatives, Washington, D. C.
My Dear IMbs. Bolton : With further reference to your letter of July 5, 1944,
I am pleased to furnish information for the Foreign Affairs Committee con-
cerning the qualifications of Mr. Harry D. White, Assistant to the Secretary and
Director of the Division of Monetary Research.
Mr. White attended "Stanford University and received the degrees of bachelor
of arts and master of arts from that institution. He also received the degree of
doctor of philosophy from Harvard University.
Prior to entering the Federal service, Mr. White served 6 yars as an instructor
in economics at Harvard University, Cambridge, Mass., and 2 years as professor
of Economics at Lawrence College in Wisconsin.
Mr. White was appointed an economic analyst in the Office of the Secretary
of the Treasury, effective June 20, 1934. He resigned from this position on
October 4, 1934. and from that date until Noveml^er 4, 1934. was employed by the
Tariff Commission. On November 5. 1934, Mr. White was appointed principal
economic analyst in the Division of Research and Statistics, Treasury Depart-
ment. He was promoted to Assistant Director of Research and Statistics, effec-
tive October 6, 1936, and held that position until March 25, 1938, when he became
Director of Monetary Research. On August 30, 1941, Mr. White was given
the additional title and duties of an Assistant to the Secretary.
Mr. White's present duties include responsibility for the work of the Division
of Monetary Research, for the management and operation of the Stabilization
Fund, and for all matters with which the Treasury Department has to deal
having a bearing on foreign relations. He also serves as alternate for the
Secretary and Treasury representative with various intergovernmental and
interdepartmental boards and committees.
[Written notation:] Mr. Bell cleared with the Sec'y, 7/16/44.
Mr. White has represented the Treasury Department on the following bodies :
The Interdepartmental Lend-Lease Committee
The Canadian-American Joint Economic Committee
The Executive Committee on Commercial Policy
The Executive Committee and Board of Trustees of the Export-Import Bank
The Interdepartmental Committee on Inter-American Affairs
The National Resources Committee
The Price Administration Committee
The Committee on Foreign Commerce Regulations
The Interdepartmental Committee on Post- War Economic Problems
The Committee on Trade Agreements
The National Munitions Control Board
The Acheson Committee on International Relief.
The Board of Economic Warfare
The Executive Committee on Economic Foreign Policy
The Liberated Areas Committee
The O. S. S. Advisory Committee.
The U. S. Commercial Corporation
The Interdepartmental Committee on Planning for Coordinating the Economic
Activities of U. S. Civilian Agencies in Liberated Areas
Mr. White's publications include the following : French International Ac-
counts, Harvard University Press ; Some Aspects of the Tariff Question, Third
Edition by F. W. Taussig, with the cooperation of Mr. H. D. White.
1 trust that this information may be of asistance to you and the Committee
on Foreign Affairs.
Sincerely yours,
(Signed) Charles S. Bell.
Administrative Assistant to the Secretary.
956 INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 305
The White Hotjse,
, 194___.
To the Senate of the United States:
I nominate Harry D. White, of Maryland, to be Assistant Secretary of the
Treasury, in place of the Honorable John L. Sullivan, whose resignation is ef-
fective November 30, 1944,
Exhibit No. 306
The President, No\'ember 28, 1944.
The White House.
My Dear Mr. President : I have the honor to recommend the appointment of
Mr. Harry D. White of Maryland, as Assistant Secretary of the Treasury, in
place of the Honorable John L. Sullivan, whose resignation is effective November
30*, 1944.
Mr. White has been serving with the Treasury Department since November
5, 1934, and at the present time he is Assistant to the Secretary and Director
of Monetary Research.
I am transmitting herewith a nomination in the event you approve Mr. White's
appointment.
Faithfully yours.
November 28, 1944, 4 : 30 p. m.
(Signed) H. Morgenthau, Jr.
Exhibit No. 307
Treasury Department,
Washington, December 1, 19^.
TEEASUEY DEPARTMENT ORDER NO. 56
Effective immediately, the Director of Foreign Funds Control will report to Mr.
Harry D. White, Assistant to the Secretary.
Treasury Department Order No. 52, dated April 15, 1944, is modified accord-
ingly.
(Signed) D. W. Bell,
Acting Secretary of the Treasury.
See Subject File — Secretary Orders and Circulars.
Exhibit No. 308
January 26, 1945.
treasury department order no. 58
Effective from and after this date the Division of Monetary Research and
Foreign Funds Control will continue under the supervision of Mr. Harry D.
White, Assistant Secretary of the Treasury.
Treasury Department Order No. 52, dated April 15, 1944, is superseded, and
Order No. 56, dated December 1, 1944, is modified by this order.
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury.
See Subject File — Secretary's Orders in Mr. Percy Burdette's oflace.
Exhibit No. 309
Treasury Department
resignation
January 22, 1945.
To the honorable the Secretary of the Treasury.
Sir : I hereby tender my resignation from the position of Assistant to the
Secretary and Director of Monetary Research at a salary of $9,000 per annum
in the Treasury Department to take effect January 23, 1945,
INTERLOCKING SUBVERSION IN GOVERNMENT 957
Reasons : To accept a presidential appointment as Assistant Secretai*y.
Respectfully,
(Signed) Harky D. White.
Recommended for acceptance prejudice.
(With or without)
, 10—
(Date)
(Name)
(Title)"
Exhibit No. r;iO
958
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 311
April 30, 1946.
Hon. Harry D. White,
Assistant Secretary of the Treasury,
Wasliinyton, D. C.
Dear Mr. White : I accept with regret your resignation as Assistant Secre-
tary of the Treasury.
My regret is lessened, however, in the knowledge that yon leave the Treas-
ury only to assume new duties for the Government in the field of international
economics as the United States Executive Director of the International Mone-
tary Fund. In that position you will be able to carry forward the work you so
ably began at Bretton Woods and you will have increased opportunity for the
exercise of your wide knowledge and expertness in a field which is of utmost
importance to world peace and security.
I am confident that in your new position you will add distinction to your
already distinguished career with the Treasury.
Very sincerely yours,
Harry S. Teuman.
Exhibit No. 312
Executive Nominations Confirmed by the Senate February 6, 1946
internationaii monetary fund and international bank for reconstruction
and devklopment
Harry D. White to be United States Executive Director of the International
Monetary Fund for a term of 2 years and until his successor has been appointed.
(Copied from the Congressional Record, February 6, 1946.)
Exhibit No. 813
Treasury Department,
WasMngton, April SO, lOJfG.
The President,
Tlie White House.
My Dear Mr. President : On the 6th of May the International ^Monetary Fund
begins its work. I therefore tender my resignation as As^sistant Secretary of
the Treasury, effective May 1.
I leave the Treasury Department, in which I have served these last 12 years,
with real regret, but look forward to my new duties as the United States
Executive Director of the Fund, for I believe the Fund has a real opportunity
to help the world achieve monetary stability and sustained prosperity.
I shall do my best to carry out the policies of international economic coopera-
tion which you have fostered.
Faithfully,
Harry D. White,
Assistant Secretary,
Exhibit No. 314
United States Ctvil Service Commission,
Service Record Division,
Washington 25, D. C, July 1, 1953.
statement of federal service
Notice to individuals — This record should be preserved — Additional copies
of service histories cannot be furnished due to limited personnel in the Com-
mission. This record may be pre.sented to appointing officers for their inspection.
Name : Wilkerson, Doxey A.
Date of birth : April 24, 1905.
Authority for original appointment (Examination from which appointed or
other authority — E'xecutive Order, Law, or other exemption) : Schedule A-1-13.
INTERLOCKING SUBVERSION IN GOVERNMENT
959
Effective
date
Nature of action
Position, grade, salary, etc.
June 18,1942
July 3. 1942
July 4. 1942
Aug. 18,1942
July 17,1942
Dec. 29,1942
Jan. 9, 194.3
June 23,1943
War Service Appointment (Tempo-
rary) (For a temporary period from
6-18-42 through 7-3-42).
Termination
War Service Appointment (Tempo-
rary) Sched. A-1-13.
Extension of War Service Appoint-
ment (Temporary) (Not to exceed
9-16-42).
Extension of War Service Appoint-
ment (Temporary) (Not to exceed
11-15-42).
Termination (Expiration of Tempo-
rary Appointment).
War Service Appointment (Regulation
V).
Resignation — Voluntary (To join the
Communist Party, and to accept per-
manent employment with that organ-
ization).
Consultant, CAF-11, $10.55 per diem, WAE
OfBce of Price Administration, Consumer Divi-
sion, Educational Relations Branch, Wash-
ington, D. C.
Consultant, CAF-11, $10.55 per diem, WAE
Office of Price Administration, Consumer Divi-
sion, Educational Relations Branch, Washing-
ton, D. C.
Education Specialist, P-4, J3,800 per annum
Office of Price Administration, Dept. of Infor-
mation, Washington, D. C,
A. M. Deem,
Chief, Audit Section.
The above transci'ipt of service hi-story doe.s not include all salary changes,
intraagency transfers within an organizational unit not involving changes from
one official headquarters or duty station to another, and promotions or demotions,
since Federal agencies are not required to report all such actions to the Com-
mission.
ExiiiuiT No. 314A
Executrt: Office of the Pkesident, Office of Price Administration
advice of personnel action
This advice : July 22, 1943.
Issuing office : Page 8, Action 20654.
Name: Wilkerson, Doxey A.
Xature of action : Resignation — Voluntary.
Date of birth : April 24, 11)05.
Effective date : .June 23, 1943, at 5 : 00 p. m. (Pay ly^ hours).
Position : Education Specialist, Title Code : #2S0.
Grade and salary : P-4, $3,S(X) per annum.
Office: Department of Information.
Division : Consumer Division.
Section : Educational Services Branch.
Unit : Section Code : #433.
Headquarters : Washington, D. C.
Departmental or field : Departmental.
Remarks : To join the Communist Party, and to accept permanent employment
with that organization.
Appointments to positions are made for such period of time as the work is
required and funds are available. New appointments are sub.iect to character
investigation. You are subject to the provisions of the Retirement Act. This
document may not be used as a basis for the assertion of any authority or for a
claim of any privileges as a representative of the Office of Price Administration.
Kenneth D. Warner,
Personnel Officer.
32918° — 53 — pt. 14 5
' 960 INTERLOCKING SUBVERSION EST GOVERNMENT
Exnii5iT No. P.l;
mMm^y
ir.^wi>mimm>)
OSTH or
OFFICE
Krmi»M
, -mmmmm&s
so HEU' }.{F'GOD.
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INTERLOCKING SUBVERSION IN GOVERNMENT
961
96f
INTERLOCKING SUBVERSION IN GOVERNMENT
!«?««^"«i't<':«'A'??Biw*i-vi»>s>»(«.'^^».««»:A%*
■■■4
rNTERLOCKING SUBVERSION IN GOVERNMENT
963
<s-?> ■ >^^^WvN^?v■^^^s^v.^K?W|)5^>K"S«Ni?!^'^::^557W^:!^^
\<^
:2mt
i^i^JyS-fS^ *!^ ■ fc 3 Sim!
sSs
964
INTERLOCKING SUBVERSION IN GOVERNMENT
simiiiwiwiiMswa^gg^
it-
INTERLOCKING SUBVERSION IN GOVERNMENT
965
Exhibit No. 137
966
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 317A
s-^-^i>~''„ ^-Sf^'^jfi,
> AroouBt-gf »-■>;..,-..,..., ..-.y,-.,-. — ^ — ,-..
'"■(^"(TS) Effecti-^iKss jc Kseetixss «««2 iiea^uix with
pteimlsi; f
:., iii\ Metsti
: , fw^ tg tew feMte itBg <i«t<Wfa«8.
ST*.TR AXY OTSIKR E3CJEKKN"rS IXtK»n>KR]E»
Has marlcs 5n alJ u»iri«'!infz1 ci'sroentji, and no wiitins marks,
Plua marks c-n at leapt h&'':i <it tho yrKii^rHlWHi n^kiinejit;!, Aix? ?k* mmcs
inRfkx.... ..._ „. -..,; ,...< — .._..;„„.,.^.
C^ecX wijitks or bfftt'.'r en a znjaiority of xindGriir-cd elesftwts, arjfi »«>•
minnis raarkB cwrefanj^tisiited by (ji«3 iiiarks ,
OwcV uwfks «r W'tk-r on a majorfty -if ur.dcrHned eltaimta, and jkirds
KnarJf^ sict C'Viir';ofnpe7iP»te<J l5y pl>is omrk?* ..„ :,.,y„. ..._.. — -
Hintw marks on at h^o.-*? hfl;f tif tiu>-imderjj.ne<i *;i^n^r>U. ....-
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UjisatisJsctiir
oiR.-tal..
KsJ.mif ikpprpv*^ by efficiency TatiG!? cormniUtM>
Xitport iti esa.^}<fytv .
INTERLOCKING SUBVERSION IN GOVERNMENT
967
Exhibit No. 317B
...(16) <
...<18> J
Phis msrk» «B ali ana«rlM«j;;<M«tttit-
marks™,.. .-..^
fflinos tnarias «^|
(Thecfe marks or ^tt*>^;;^fip
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lUtojr ap|>«w»<) W eflfcwncj: ?rtiKg:i«Sw»i||Ni|jf
968
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 318
Application fob Federal Employment
Standard Form No. 57
Approved April 9, 1942
(Revised July 1942)
U. S. Civil Service Commission
C. Dept. Cir. No. 332
Mr. Irving Kaplan.
3354 Martha Custis Drive, Alexandria, Virginia.
Date of birth (month, day, year) : Sept. 23, 1900.
Age last birthday : 43.
Date of this application : August 17, 1944.
Legal or voting residence : State : Pennsylvania.
Telephone numbers : RE-7500, Temple 0983, X-6276.
G
S.
4.
5.
6.
7.
8.
9.
10.
11. (a) Check one: X Male. __ Female
Separated. X Married Divorced.
12. Height, without shoes : 5 ft. 7% in.
Where were you born ? Poland.
Are you a citizen of the United States? Yes.
Do you advocate or have you ever advocated
(b) Check one: __Widowed. —Single.
or are you now or have you
Weight: 1301b.
13.
14.
17.
ever been a member of any organization that advocates the overtln'ow of the
Government of the United States by force or violence? No.
31. (a) Have you ever filed applications for any Federal civil service exami-
nations? Yes.
(If so, list them below.)
Titles of examinations
Senior Social Science Analyst.
Senior Industrial Economist. .
Principal Statistician
Principal Economist
Examined in what cities
Month
and year
1938
19.S9
1939
1940
Ratings
32. Education: (a) Highest grade completed, elementary or high school: 12.
Did you graduate? Yes.
Name and location of school
Dates attended
Years completed
Degrees con-
ferred
Semester
hours
From—
To-
Day
Night
Title
Date
credit
(b) College or university.--
C. C. iX. Y., New York City
9-19
9-20
9-27
6-20
6-23
1-29
35
Columbia, New York City
A. B.
6-23
Grad.
Fordham Law School, New York
3f.
(e) Other
(d) List your four chief undergraduate
subjects
Semester
hrs.
Lisu your four chief graduate subjects
Semester
hrs.
General honors course
Special Subject: Methods in the Social
Sciences, Economics and Statistics, 18
hrs. Anthropology, 9 hrs.
24
34. Are you now a licensed member of any trade or profession (such as
electrician, radio operator, pilot, lawyer, CPA, etc.) ? No.
35. References: List live persons, who are not related to you by blood or
marriage, who live in the United States, and who are or have been mainly
responsible for close direction of your work, or who are in a position to judge
your work critically in those occupations in which you regard yourself as best
qualified.
INTERLOCKLNTG SUBVERSION EST GOVERNMENT
969
Full name
Address
(Give complete address, including street and
number)
Business or occupation
'SI. Joseph Meehan..
Commerce Department, Washington, D. C...
Washineton. D. C
Chief, Div. Research & Stat.
Exec. Asst. to the Pres.
Stinrf RifP
Budget Bureau, Washington, D. C
Director, Div. of Statistical Stand-
Joseph Dorfman
Dept of Economics Columbia Univ
ards.
New York City.
War Denartment. Washineton. D. C
Chief, Analysis and Reports,
MM&D.
36. May inquiry be made of your present employer regarding your character,
qualifications, etc.? Yes.
37. Experience : In the space furnished below give a record of every employ-
ment, both public and private, which you have had since you first began to work.
Start with your present position and work back to the first position you held,
accounting for all periods of unemployment. Describe your field of work and
position and, except for employments held less than three months, give your
duties and responsibilities in such detail as to make your qualifications clear.
Give name you used on pay roll if different from that given on this application.
Present position : Place Washington, D. C. From Feb. 2, 1942, to date. Name
of employer : War Production Board, Washington, D. C. Kind of business or
organization : Government. Exact title of your position : Head Program Prog-
ress Analyst. Salary: Starting, $6,500; Final, $6,500. Duties and responsibil-
itie.s : Analysis of programs and problems of war production.
Place : Washington, D. C. From Feb. 21, 1940, to Feb. 2, 1942. Name of
employer: F. W. A. Address: North Interior Bldg.. Washington, D. C. Kind
of business or organization : U. S. Government. Exact title of your position
Prin. Res. Economist. Salary : Starting, $ ; Final, $5,600. Duties and re-
sponsibilities : In charge of Research Section.
Place: Washington. D. G. From Oct. 9, 1939, To Feb. 20, 1940. Name of
employer : Social Security Board. Address : Washington, D. C. Kind of busi-
ness or organization : U. S. Government. Duties and responsibilities : On detail
from Department of Justice for survey on research and reporting system of
the Bureau of Old Age and Survivors Insurance. Planned and conducted survey.
Place: Washington, D. C. From Aug. 1938, To Oct. 8, 1939. Name of em-
ployer : Department of Justice. Address : Washington, D. C. Kind of business
or organization : U. S. Government. Exact title of your position Spec. Asst. to
Attorney General. Salary: Starting $ ; Final, $5,400. Duties and respon-
sibilities : Economic advisory planning. Direction and conduct of research
and supervision of staff.
Place : Philadelphia. Pa. From Nov. 1935 to Aug. 1938. Name of employer :
WPA Nat'l Research Project. Address : Philadelphia, Pa. Kind of business or
organization : U. S. Government. Exact title of your position : Assoc. Director.
Salary: Starting $ — per yr. Final $5,400. Duties and responsibilities:
Planning and directing of research program and staff.
Place : Washington, D. C. From July 1935 to Oct. 1935. Name of employer :
Works Progre.ss Adm. Address : 1734 New York Avenue, Wa.shington, D. C.
Kind of business or organization : U. S. Government. Exact title of your posi-
tion: Principal Statistician. Salary: Starting, $ per yr. Final, $4,200.
Duties and re.sponsibilities : Direction of research and staff.
Place : San Francisco, Calif. From Sept. 1929, to April 1935. Name of em-
ployer : Pacific Gas & Electric Co. Address : San Francisco, Calif. Exact title
of your position : Economist and Statistician. Salary : Starting $ per
yr. Final, $3,600. Duties and responsibilities : Planning and directing of re-
search activities.
Place: New York, New York. From Oct. 1926 to July 1929. Name of em-
ployer : Nat'l Industrial Conference. Address : 247 Park Avenue, New York,
N. Y. Exact title of your position : Member, Research Staff. Salary : Starting,
$ per yr. Final, $3,600. Duties and responsibilities : Research in public
finance. Federal, State, and local taxes.
From October 1923 to June 1924. Duties and responsibilities : Graduate work
in anthropology and statistics with Franz Boas.
^70 INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 319
Hk^vdquabteus, U. S. Forces, Eukopean Theater
WHW/klk
(Main) APO 757
18 December 1945
AG 300.4 (15 Dec. 45) L-59.
Subject: Orders.
To : Mr. Irving Kaplan, US Civilian,
1. Mr. Irving Kaplan, US Civilian, attaclied this Hq., O of Mil Govt (US Zone),
is relieved from assignment and duty in this theater effective 18 December 1945
and will proceed from his present station to Paris, France, thence by first avail-
able air (ET-US-2-F4137-TDP-DEC) transportation to Washington, D. C.
2. Travel by military aircraft, Army or Naval transport, commercial steamship,
motor and/or rail transportation is directed. A baggage allowance of 65 pounds
is authorized while traveling by air.
3. The cost of transportation will be borne by the War Department.
4. Mr. Kaplan is not on the War Department payroll and therefore not sub-
ject to the provisions of Civilian Personnel Cir No. 18, WD 1944.
5. Mr. Kaplan is designated an official courier for the purpose of carrying
classified and unclassified documents.
6. TCNT. TDN. 60-115,114,500 P 461-02 A 212/60425.
By command of General McNarney.
AG 300.4. 1st Inc.
Office of Military Government for Germany (U. S.), APO 742, U. S. Army, 20
December 1945.
To whom it may concern.
In complying with the provisions of this order, Mr. Irving Kaplan, US Civilian,
is authorized to proceed by air (ET-US-2-F4137-TDP-DEC) transportation from
this station to his destination.
For the Commanding General :
George E. Seigler,
8W0, VBr, Asst Adjutant General.
Exhibit No. 319A
June 18, 1945.
The Honorable the Secretary of State.
(Attention: Mr. Thomas H. Claffey)
My Dear Mr. Secretary: This Department wishes to send to Germany Mr.
Irving Kaplan. Mr. Kaplan will be assigned to the civilian group requested for
duty with the United States Group Control Council and Supieme Headquarters
Allied Expeditionary Forces, to which project number CAD 111-T has been
assigned by the Civil Affairs Division, War Department.
A biographical sketch of Mr. Kaplan is enclosed. His character and loyalty to
this Government are being investigated by this Department.
It is of vital importance that Mr. Kaplan leave this country as soon as
possible. This Department will appreciate your issuing him the Special Pass-
port for which he has applied.
Sincerely yours,
(Signed) Charles S. Bell,
Administrative Assistant to the Secretary.
Exhibit No. 320
Division of Monetary Research
CROSS reference sheet
Memo to : Mr. O'Daniel.
From : Mrs. Hall.
Dated: 9/21/45.
Subject: Monetary Research personnel detailed to FFC for assignment m
Germany.
INTERLOCKING SUBVERSION IN GOVERNMENT 971
See file : Germany & Finance division — AGO,
See files for : Mesinoff, Gloria
Rippel, Lorna
Kaplan, Irving
Kamarck, Andrew M.
Miller, Frances M. (Mrs.)
Nasserr, Marjorie A.
Exhibit No. 321
Treasury Department,
Treasury Enforcement Agencies,
July 17, 1945.
[Report examined, approved and forvparded to Chief Coordinator July 21,
1945. R. E. Tuttle, District Coordinator, Treasury District No. 5.]
In re : Irving Kaplan, Alexandria, Va.
Applicant : Assistant Director, Division of Monetary Research, Treasury De-
partment.
Chief Coordinator,
Treasury Enforcement Agencies, WasJiington, D. C:
This report relates to an investigation to determine the character, reputation,
and loyalty to this Government of the above-named individual, vpho is being
considered for a position in the Division of Monetary Research, Treasury De-
partment, Washington, D. C.
The applicant was the subject of a character investigation in connection with
an appointment to his present position in the Foreign Economic Administration,
Washington, D. C, on September 12, 1944. That investigation was conducted
by the United States Civil Service Commission and the report thereof was
favorable to the applicant. Pertinent information disclosed by the previous in-
vestigation report is incorporated herein.
The case jacket and related papers are transmitted herewith.
Personal History and Appearance
The applicant was interviewed in Washington, D. C, on June 28, 1945, and
stated that he was born on September 23, 1900, in Zdziencial, Poland, the son
of Morris A. and Jennie Kaplan, natives of Poland and naturalized citizens of
the United States. He said that his parents are deceased. Mr. Kaplan advised
that his name originally was Isidor Kaplan, but that about the year 1914 he
dropped the given name "Isidor" and assumed the name "Irving," without
the formality of legal action.
An examination of the records of the Citizenship Unit, United States Civil
Service Commission, Washington, D. C, disclosed that the applicant's father
was admitted to United States citizenship in the Supreme Court of the State
of New York on December 18, 1911, and that a son named "Isidor," aged 10
years, appeared on the naturalization records. The applicant therefore claims
United States citizenship through his father's natui'alization. Mr. Kaplan
related that he is married to the former Dorothy Friedland, a native of New
York City, N. Y. He said they were married on March 31, 1939, in New
York City, N. Y., and that they have no children. He also asserted that he
has no known relatives residing outside the United States. He said that his
wife is his only dependent.
On the occasion of interview, the applicant presented a favorable appearance
and was cooperative in answering questions. No physical defects or peculiari-
ties were observed and none were disclosed.
EDUCATION
According to the applicant's statement, he attended public school in Bronx,
N. Y., graduating from high school in June 1917. Mr. Kaplan's statement
that he attended the City College of New York and Columbia University,
New York City, N. Y., and that he was graduated from the latter university
with a Bachelor of Arts degree in June 1923 was confirmed. Mr. Edward J.
Grant, registrar of Columbia University, advised in a letter that the appli-
972
INTERLOCKING SUBVERSION IN GOVERNMENT
cant maintained a high scholastic rating, was in good standing and received
the AB degree with general honors on June 6, 1023.
Mr. Kaplan also stated that he enrolled at Fordham University Law School
in September 1927, and that he discontinued attendance in 1929, The acting
registrar of Fordham University Law School, in reply to a letter, advised* that
the applicant was in attendance from September 19, 1927, to April 10, 1920.
The letter further advised that the applicant's record as to his character,
attendance, and deportment was perfectly regular in every way; that there is
nothing in the records which reflects any disloyalty to the United States on
the part of the applicant.
EMPLOYMENT
When interviewed, the applicant gave the following employment informa-
tion :
Date
July 1918 to June 1919..-
July 1919 to September
1923.
October 1923 to June
1924.
July 1924, to October
1926.
October 1926 to July
1929.
September 1929 to April
1935.
April 1935to July 1935.-
July 1935 to October
1935.
November 1935 to
August 1938.
August 1938 to Febru-
ary 1940.
February 1940 to Febru-
ary 1942.
February 1942 to Sep-
tember 1944.
September 1944 to date
of interview.
Employer
Fierce Oil Corp., 25 Broad St., New York,
N. Y.
A. I. Namm Co., Broolclyn, N. Y
Unemployed
Corporation Trust Co., 120 Broadway,
New York, N. Y.
National Industrial Conference Board 247
Park Avenue New York, N. Y.
Pacific Gas & Electric Co., San Francisco,
Calif.
Unemployed
Works Progress Administration, 1734 New
York Ave., Washington, D. C.
WPA (National Research project), Phila-
delphia, Pa.
Department of Justice, Washington, D. C-
Federal Works Agency, Washington, D. C
War Production Board, Washington, D. C
Foreign Economic Administration, Wash-
ington, D. C.
Position
Salary
Cost-clerk
Statistical clerk.
Research analyst .
Member of research
staff.
Economist
Principal statistician..
Associate director
Special assistant to
Attorney General.
Principal research
economist.
Head-program prog-
ress analyst.
Economic adviser
Per year
$960
1,120
2,310
3,600
3,600
4,200
5,400
5,400
5,600
6,500
8,000
No inquiries have been made concerning the applicant's employment history
prior to the year 1935, inai^much as investigation has disclosed that tlie applicant's
service record subsequent to that time has been declared satisfactory.
An examination of the microfilm records of the Federal Works Agency, Wash-
ington, D. C, disclosed that Mr. Kaplan was employed by the Works Progress
Administration, Washington, D. C, on March 16, 1935, as a principal statistician
at a salary of $4,200 per annum. The records show that on September 16, 1936.
the applicant's status was changed to that of Associate Director of the National
Research Project (WPA), at Philadelphia, Pa., at a salary of $5,400 per annum.
The records disclosed that the function of the National Research Project was
to make a survey on reemployment opportunities and to evaluate changes in
indu-strial techniques. According to the records, the applicant resigned his
position on August 2, 1938, in order to accept a position with the Department of
Justice in Washington, D. C.
Mr. Kaplan's personnel file. Department of Justice, Washington, D. C, dis-
closed that he was appointed on August 3, 1938, as a Special Assistant to the
Attorney General (expert), at a salary of $5,400 per annum, and that he was
assigned to the Antitrust Division, Wa.shington, D. C. The records further
disclose that Mr. Kaplan was detailed to the Social Security Board in Wash-
ington, D. C, for a period of several months. The records indicate that the
applicant's services were terminated without prejudice on April 5, 1940, because
of a necessary reduction in force. There was nothing of a derogatory nature
contained in the applicant's personnel file.
The report of the United States Civil Service Commission disclosed that Mr.
Kaplan was appointed to a position in the Federal Works Agency, Washington,
D. C, on April 21, 1940, as a research analyst, salary $5,600 per annum, and
that he was assigned to the Office of the Administrator, Research and Statistics
INTERLOCKING SUBVERSION IN GOVERNMENT
973
Division. The report disclosed that the applicant's status was changed to that
of principal research analyst, salary $5,600 per annum, on July 15, 1940; that
his eflicieucy rating dated October 20, 1941, was "excellent", and that on February
1, 1942, the applicant's services were terminated by a transfer to the War Produc-
tion Board, Washington, D. C.
The Civil Service report further indicated that the applicant received a tem-
porary appointment with the War Production Board, Washington, D. C, on
February 2, 1942, as head economic analyst, grade P-7, salary $6,500 per annum,
and that he was assigned to the Fiscal Division, Industry and Commodity Re-
search Branch. The report also indicated that on February 16, 1942, the appli-
cant's status was changed to that of head, program progress analyst, at the
same grade and salary, and that his services were terminated by transfer to the
Foreign Economic Administration, Washington, D. C, on September 11, 1944.
The applicant's personnel file at the Foreign Economic Administration, Wash-
ington, D. 0., disclosed that Mr. Kaplan was appointed by a transfer from the
War Production Board on September 12, 1944, as director, program and rejwrt
staff, grade P-S, at a salary of $8,000, and that he was assigned to the Office of
the Administrator, Office of Economic Program. This is Mr. Kaplan's present
position.
Mr. James W. Angell, Assistant Administrator, Office of Economic Program,
Foreign Economic Administration, Washington, D. C, advised, when interviewed,
that Mr. Kaplan had been under his personal sui)ervision since January 1945.
According to Mr. Angell, the applicant has performed entirely satisfactory serv-
ices and is a capable and efficient employee. He said that the work on which
Mr. Kaplan had been engaged is about completed and that consequently the
applicant is making a request for a transfer to the Treasury Department. He
mentioned that Mr. Kaplan had expressed a desire to make a connection with
one of the permanent Government agencies. Mr. Angell also said that to the
best of his knowledge he knew of nothing whatsoever which would reflect unfa-
vorably on the applicant's character, reputation, or loyalty to the United States
Government.
FINANCIAL CONDITION
On June 29, 1945, the applicant executed a financial statement on CCO-Form
No. 2, disclosing assets in the amount of $5,380. The principal item listed among
the assets consisted of United States Government bonds valued at $3,200. He
listed no liabilities.
The files of the Associated Retail Credit Men of Washington, D. C, Inc.,
indicate that the applicant and his wife have established satisfactory credit
accounts in this city. There was no indication in the file that the applicant was
ever the subject of litigation, suits, or judgments.
The collector of internal revenue, Baltimore, Md., verified that Mr. Kaplan
filed income-tax returns for the calendar years 1939-44,
GENERAL AND MISCELLANEOUS INFORMATION
The files of the Metropolitan Police Department, Washington, D. C, and the
Police Department of Alexandria, Va., disclosed no record of the applicant's
name.
The following-named individuals have expressed favorable comments concern-
ing Mr. Kaplan's character, reputation, and loyalty to this Government :
Name and address
Occupation
Length of
acquaintance
Mr. Louis S. Friedland, New York City, NY ..
Editor
Years
20
Dr. Joseph Dortaan, Columbia University, New
York, N. Y.
Mr. Harry Magdoff, Department of Commerce,
Washington, D. C.
Mr. Stuart A. Rice, Bureau of the Budget, Wash-
ington, D. C.
Mr. M. J. Meehan, Department of Commerce,
Washington, D. C.
Professor -
15
Chief, Current Business Analysis
Unit.
Assistant Director, Statistical Stand-
ards Division.
Chief, Division Research and Statis-
tics.
•
9
6
3
974 INTERLOCKING SUBVERSION IN GOVERNMENT
It is the statement of Mr. Kaplan that he never has been a member of, asso-
ciated or aflaiiated with, any organization which advocates or supports any move-
ment opposed to the constitutional form of government of the United States.
IMr. Kaplan stated that he has no interest in any concern primarily engaged
in the sale or manufacture of tobacco or alcoholic beverages; that he is not
engaged in the private practice of law and is not enrolled as an attorney or
agent to practice before the Treasury Department.
The applicant exhibited his selective service registration and classification
cards, which indicated that he was registered on February 16, 1942, with local
board No. 3, Washington, D. C, and was classified 4-A. Mr. Kaplan stated that
he has reached his 44th birthday.
SUMMARY
This investigation disclosed nothing which would indicate that the statements
made by Mr. Irving Kaplan concerning his history were not substantially cor-
rect. Informed sources have expressed favorable comments concerning the
applicant's services, character, reputation and loyalty to this Government.
E. J. Gaffney, Agent.
[July 25, 1945: No identification. R. W., Committee on Un-American
Activities.]
Exhibit No. 322A
United States Civil Sf^vice Commission,
Service Record Division,
Wasliingtofi 25, D. C, Juhj 1, 1953.
statement of federal service
Notice to individual!? — this record should be preserved — additional copies of
service histories cannot be furnished due to limited personnel in the Commission.
This record may be presented to appointing officers for their inspection.
Name: Kaplan. Irving.
Date of birth : 9-2.3-00 .
Authority for original appointment (examination from which appointed or
other authority — executive order, law, or other exemption) : Excepted executive
order 5-0-35.
INTERLOCKING SUBVERSION IN GOVERNMENT
975
Effective date
Mar. 16 1936
Sept. 16, 1936
Aug. 2, 1938
Aug. 3, 1938
Mar. 15.1939
May 9, 1939
Teb. 20,1940
Feb. 21,1940
July 1, 1941
Feb. 1, 1942
Feb. 2, 1942
Feb. 16,1942
July 1, 1942
Sept. 11, 1944
Sept. 12, 1944
July 11,1945
July 12,1945
July 12,1945
May 19,1946
May 20, 1946
June 28,1947
Nature of action
Excepted Appointment
Promotion
Resignation
Excepted Appointment (E.xecutive
Order 7942, Aug. 2, 1938).
Discharge without prejudice
Excepted Appointment (Executive
Order 7942, Aug. 2, 1938).
Discharge without prejudice
Excepted Appointment --.
No record of separation
Probational Appointment (Principal
Economist (Option 9) 91.00).
Separation — Transfer
Appointment by Transfer..
Change in Designation — Inter Division
Transfer.
Transfer.
Separation— Transfer
Appointment by Transfer (Reg. IX,
Sec. 2b).
Separation — Transfer
Appointment by Transfer (Reg. IX,
Sec. 2a).
DetaO (For a period not to exceed 120
days) .
"Incumbent to be assigned to the
United States Group Control Coun-
cil, Germany."
Separation — Transfer
Appointment by Transfer (DC 549,
Reg. V, Sec. B)
Separation (R. I. F.).
Position, grade, salary, etc.
Associate Director, $5,000 per annum, Works
Progress Administration, National Research
Project.
$5,400 per annum.
Special Assistant to Attorney General, $5,400
per annum, Justice, Washington, D. C.
Expert, $5,400 per annum, Justice, Washington,
D. C.
Research Analyst, $5,600 per annum, EO-16
Federal Works Agency, Office of the Chief
Research and Statistics Section, Washington,
D. C.
Principal Research Economist, P-6, $5,600 per
annum. Federal Works Agency, Office of the
Administrator, Washington, D. C.
Head Economic Analyst, P-7, $6,500 per annum,
War Production Board, Statistics Division,
Industrial & Commodity Research Branch,
Washington, D. C.
Head Program Progress Analyst, P-7, $6,500 per
annum. War Production Board, Executive
Office of the Chairman, Office of Progress Re-
ports, Washington, D. C.
Head Program Progress Analyst, P-7, $6,500 per
annum. War Production Board, Statistics
Division, Washington, D. C.
Director, Programs and Reports Staff, P-8,
$8,000 per annum, Foreign Economic Adminis-
tration, Office of the Administrator, Office of
Economic Programs, Washington, D. C.
P-8, $8,750 per annum.
Economic Advisor (Liberated Area Problems)
P-8, $8,750 per annum. Treasury, Division of
Monetary Research, Washington, D. C.
Economic Advisor, P-8, $8,750 per annum.
Treasury, Foreign Funds Control.
Economist (Chief Stabilization Studies Division)
P-8, $9,012.50 per annum. Office of War Mobili-
zation and Reconversion, Advisory Board — -
Guaranteed Wage Study, Washington, D. C.
P-8, $10,000 per annum.
A. M. Deem,
Chief, Audit Section.
The above transcript of service history does not include all salary changes,
intra-agency transfers within an organizational unit not involving changes from
one official headquarters or duty station to another, and promotions or demotions,
since Federal agencies are not required to report all such actions to the Com-
mission.
Exhibit No. 322B
United States Treasuky Department, Washington, D. C.
PERSONNEL RECOMMENDATION
To Director of Personnel :
Name : Kaplan, Irving
From : Division of Monetarj'
Nature of Recommendation :
Position : Economic Adviser
Grade: P-8.
Salary : $8,000 per annum.
Bureau or Division : Division of Monetary Research
Headquarters : Washington. D. C.
Post of Duty : Washington, D. C.
June 18, 1945.
Research.
War Service Appointment.
(Liberated Area Problems).
976
INTERLOCKING SUBVERSION IN GOVERNMENT
Appropriation allotment : For Funds.
Field or Deptl. : Deptl.
Effective : July 12, 1945.
Appropriation : ESFR.
Date of birth : 9/23/00
Legal residence : Fenna.
Sex: M.
Race: W.
Subject to Retirement Act : Yes.
Remarks : Appointed for the duration of the war and six months thereafter
unless sooner terminated. Character investigation is in process; appointment
recommended subject to favorable report thereon.
Justification : Services required.
F. CoE,
Bureau or Division Head.
Exhibit No. 322C
July 11, 1945.
Mr. Irving Kaplan,
Division of Monetary Research,
Washington, D. C.
My Dear Mb. Kaplan : On the recommendation of Mr. Frank Coe, Director of
Monetary Research, you are hereby appointed Economic Adviser, grade P-8,
i?8,750 per annum, effective July 12, 1945.
By direction of the Secretary :
Very truly yours,
Paul McDonald,
Acting Administrative Assistant to the Secretary.
Exhibit No. 322D
United States Treasury Department, Washington, D. C.
personnel recommendation
To Director of Personnel :
Name : Kaplan, Irving
From: DiTision of Monetary Research
Nature of Recommendation : Appointment by transfer.
July 12, 1945.
Position.
Grade
Salary
Bureau or Div.
Headquarters,.
Post of Duty.. -
Appropriation.
Field or Deptl.
From—
Director, Programs and Reports Staff.
P-8
$8,750 per annum
Foreign Economic Administration.
Washington, D. C_
To-
Economic Adviser (Liberated Area
Problems).
P-8.
$8,750 per annum.
Division of Monetary Research.
Washington, D. C.
Washington, D. C.
Exchange Stabilization Fund.
Departmental.
Civil service or other legal authority: Reg. IX, Sect. 2A, F33913, XS:T:JH,
7/11/45.
Appropriation : p]SFR.
Date of birth : 9/23/00.
Leual residence : I'enn.
Sex : M. Race : W.
Subject to Retirement Act: Yes.
Effective July 12, 1945
Remarks: Subject to favorable report on character investigation. For a
period not to exceed one year. Employee entitled to reemployment benefits un-
der the War Service Regulations.
Justification : Services required. F. Coe,
Bureau or Division Head.
Approved :
D. W. Bell,
Acting Secretary.
INTERLOCKING SUBVERSION IN GOVERNMENT
977
December 29, 1945.
Mr. O'Daniel
Mrs. Woodell
Ml'. Irving Kaplan returned to the United States on December 23, 1945.
Mr. Andrew M. Kamarck returned to the United States on December 14, 1945.
[Written notation : ] to O. D. 12/29/45 grp Mr. Gatshel has been notified.
Exhibit No. 322E
United States Treasury Department, Washington, D. C.
personnel recommendation
To Director of Personnel :
Name : Kaplan, Irving
From : Division of Monetary Research
Nature of Recommendation: Pay Increase (Periodic).
April 10, 1946.
From—
To—
Position -.
Grade
Salary
Bureau or Div
Headquarters.
Post of Duty_.
Appropriation.
Field or Deptl.
Economic Advisor
P-8
$8,750 per annum
Division of Monetary Research
Washington, D. O
Washington, D. O
Exchange Stabilization Fund...
Deptl
Economic Advisor.
P-8.
$9,012.50 per annum.
Division of Monetary Research.
Washington, D. C.
Washington, D. C.
Exchange Stabilization Fund.
Deptl.
Appropriation : ESFR
Date of borth : 9/23/00
Legal residence : Penn.
Sex : M. Race : W.
Subject to Retirement Act? Yes.
Effective March 24, 1946
Approved.
Paul Z. Kelley,
Administrative Assistant to Secretary.
Justification : Current eflBciency rating : Excellent, Date and amount of last
increase : 9/12/44. Service and conduct otherwise satisfactory : Yes. Position
not temporary. Leave without pay or furlough in excess of 30 days : None.
Frank Coe,
Bureau of Division Head.
Exhibit No. 322F
United States Treasury Department, Washington, D. C.
personnel recommendation
May 17, 1946.
To Director of Personnel :
Name : Kaplan, Irving
From : Division of Monetary Research
Nature of Recommendation : Separation-Transfer.
From-
To-
Position
Grade
Salary
Bureau or Div
Headquarters-.
Post of Duty..
Appropriation.
Field or Deptl
Economic Advisor
P-8
$9,012.50 per annum
Division of Monetary Research
Washington, D. C
Washington, D. 0
Exchange Stabilization Fund..
Departmental
Oflice of War Mobilization and Recon-
version.
978 INTERLOCKING SUBVERSION IN GOVERNMENT
Civil Service or other legal authority : TCSR XVI, Sec. 3.
Appropriation : ESFR.
Date of birth : 9-23-1900.
Legal residence : Penn.
Sex: M. Race: W.
Subject to Retirement Act? Yes.
Effective : May 19, 1946, c. o. b.
Frank Coe,
Bureau or Division Head.
Approved :
Paul Z. Kelley,
Administrative Assistant to the Secretary.
Exhibit No. 322G
June 23, 1945.
Miss WiLMA R. Staek,
United States Civil Service Commission,
Washington 25, D. C.
Dear Miss Stark : I am sending the enclosed supplement to my application,
form 57, at the request of Mrs. Hall of the Treasury Department.
Sincerely yours,
Irving Kaplan, Adviser.
Copy to Mrs. Mary Hall.
Irving Kaplan
1. Economic Adviser, Foreign Economic Administration : Responsible for
the Office of Reconstruction and Foreign Development, Office of Economic Pro-
grams, concerned with requirements of foreign economies for imports and foreign
financing, and their bearing on United States foreign economic policies, trade
problems and patterns and financing arrangements.
Publications : Confidential report on Worldwide Import and Financing Require-
ments, and supplementary reports by countries and areas.
2. Head Production Program Analyst, Progress Division, War Production
Board : Responsible for planning and directing the preparation of reports analyz-
ing the progress and problems of war production as a whole and In particular
segments or programs, developments in the war economy, the economic problems
which have developed or are to be anticipated and the measures available for the
solution of the problems of war production and the war economy. Coordinated
the work of several sections and their staff, integrating the findings of the various
studies into concrete appraisals of (1) the adequacy of war procurement and
production, as a whole and in particular segments or programs, (2) the resources
of critical materials, component supply, plant capacity and labor allocated,
utilized and required therefor, (3) the resources available and to become avail-
able for other essential economic uses, (4) the extent and adequacy of programs,
production plans, and organizational preparations for the utilization of the
resources available and in prospect, and (5) the problems of utilizing such re-
sources. Reviewed and evaluated the policies and the operating procedures in the
War Production Board governing war production and the utilization of resources
in the war economy, on the basis of the foregoing analyses and reports, and
prepared recommendations for the modification and/or adaptation of policies and
operating procedures. Conferred with responsible officials in the War Production
Board and related agencies with respect to the status and development of the
programs and operations that are the subject of the Progress Division's analyses
and reports and arranged for the flow of relevant information, Deputy Director
of Division.
Publications: Secret monthly reports on United States production programs
and implementing mechanisms and controls, including reports on lend-lease and
other foreign trade programs.
3. Principal Economist, Federal Works Agency: Chief of the Research Section
in the Division of Research and Statistics. Responsible for the organization
and development of the Research Section and for the development of progress
reporting on the defense public works and the defense housing programs which
were then carried on by the Statistics Section of the same division. Planned
and directed studies on the economic role, coordinate operations and financing,
and other special problems of the various operating agencies within the FWA —
INTERLOCKING SUBVERSION IN GOVERNMENT 979
the PWA, WPA, USHA, PBA, and BPR ; and problems in the development and
operation of defense housing and defense public-works programs.
4. Si^ecial assignment to the Division of Statistical Standards of the Budget
Bureau and the Old-Age and Survivors Insurance Bureau of the Social Security
Board : Reviewed the work and records of the OASIB of the SSB for the purpose
of establishing the uses of the records appropriate to the functions of the SSB
and the additional uses of interest to other governmental agencies ; and to plan
a system of statistical tabulations and researcli for the Division of Analysis oi
the OASIB. The resiilt of this survey was issiied as a special report to the
Directors of the OASIB and the Division of Statistical Standards. The report
and the recommendations were adopted as the basis for organizing and developing
the statistical and research work in the OASIB.
5. Special Assistant to the Attorney General and Economic Analyst, Anti-
trust Division, Department of Justice : Planned and directed studies in connec-
tion with the investigations of the TNEC and the Antitrust Division. Respon-
sible for the general economic analysis in the Antitrust Division related to the
work of the TNEC; for planning the development of the housing survey by the
TNEC ; for planning and directing the Antitrust Division's investigations related
to the housing survey — investigations of plumbing, heating, and lumber indus-
tries and of distribution of housing materials.
6. Associate Director of WPA, National Research Project : Responsible for
planning, developing, and directing the research work, the results of which have
been published in some fifty-odd publications covering production, productivity,
and unemployment in various industries and in the economy as a whole, the
trends in industrial techniques and their economic effects, and labor-market prob-
lems related thereto.
Publications : The research program of the National Research Project on
Reemployment Opportunities and Recent Changes in Industrial Economics ; an
exposition of the economic perspective of the project and the program of research
undertaken.
Summary of Findings of the National Research Project ; an analysis of the
results of the completed program of research.
Some 50 to 60 publications under various authorship prepared under my
direction.
7. Further description and publications of earlier employment can be supplied
if desired.
Assistant Director, P-8 : Under general administrative direction, with very
wide latitude for independent or unreviewed action or decision, serves as
Assistant Director of Monetary Research, collaborating with the Director
($9,000) in planning, directing, and supervising the activities performed in
the Division of Monetary Research ; advises and confers with the Secretary of
the Treasury, the Director of Monetary Research, the Director of Foreign Funds
Control, and other Treasury officials on the most important, difficult, and highly
technical monetary matters — usually of policymaking significance ; on occasion,
represents the Secretary of Treasury and Treasury Department in foreign coun-
tries on the most important and responsible economic missions ; and performs
other duties of broadest scope and of greatest complexity, importance, and re-
sponsibility in the fields of economics and national and international finance.
Exhibit No. 32.3
The following information was taken from Form 57 Application for Federal
Employment of Virginius Frank Coe :
Question :
4. Mr. Virginius Frank Coe.
5. 2700 36th St. NW., Washington, D. C.
6. Date of birth : Jan. 5, 1907.
7. Age last birthday : 38.
8. Date of this application : Feb. 14, 3945.
9. Legal or voting residence : State ; Kentucky.
10. Telephone numbers : Exec. 7030, Ext. 482. Ordway 7177.
11. Male. Married.
12. Height : 6 ft. AVeight : 160 lb.
13. Where were you born? Richmond, Virginia.
980 INTERLOCKING SUBVERSION IN GOVERNMENT
17. Do you advocate or have you ever advocated, or are you now or have you ever
been a member of any organization that advocates the overthrow of the
Government of the United States by force or violence? No.
21. Are you now employed by the Federal Government? Yes.
(ff) If so: Foreign Economic Administration, Tempo. T. Bldg., Wash.
D. C. . ' .
(b) If you now are or have ever been so employed, give dates: from
June 10.34 to present.
23. Have you registered under the Selective Service Act? Yes.
If so, give address and number of local board : Local Board No. 1, Fair-
fax County, Virginia.
If Classified, give your classification : 4-C. Your order number : 1G5.
31. Have you ever filed applications for any Federal civil-service examinations?
Yes. (If so list them below.)
Titles of examinations : Principal Economist (Unassembled).
Examined in what cities : Civil Service Commission, Washington, D. C,
Month and Year : Material submitted Dec. 27, 1041.
32. Education: (a) Circle highest grade completed, elementary or high school:
11. Did you graduate? Yes.
(ft) College or University :
University of Chicago 102.3-1026 Ph. B August '26.
University of Chicago 1026-1028.
University of Chicago 1030-10.31.
University of Chicago 1032-1033.
(d) List your four chief undergraduate subjects: Social history of tech-
nology; Industry and trade; Public Finance; Economics. List
your four chief graduate subjects : Economics ; International Trade
Theory ; Social Control ; Research in Economics.
35. References :
Jacob Viner
Harry D. White-
Lauchlin Currie.
Paul McXutt...
Milo Perkins
University of Chicago, Chicago, 111
U. S. Treasury Dept., Washington, D. C
White House, Washington, D. C
Federal Security Agency, Washington, D. C.
723 15th St. NW., Washington, D. C
Economist.
Assistant Secretary.
Admin. Asst. to President.
Administrator.
Businessman.
37. Experience:
Place: Washington, D. C. From Nov. '43 to present.
Name of Employer: Foreign Economic Admin., 14th and Constitution Ave.,
Washington, D. C.
Name and title of your immediate supervisor : Leo T. Crowley, Administrator.
Exact title of your position : Assistant Administrator.
Salary per annum : Starting : $8,000. Final : $0,000.
Duties and responsibilities : Under the general direction of the Administrator,
and subject to such policies and directives as may be prescribed hy him, serves
as Assistant Administrator in charge of the Office of Economic Programs, with
responsil)ility fyr analyzing, developing, and recommending basic policies and
broad programs for approval by the Administrator to achieve the objectives
of the Foreign Economic Administration.
Place : Washington, D. C. From June 1043 to Nov. 1943.
Name of employer: Oflice of Economic Warfare, Washington, D. C.
Name and title of your immediate supervisor : Leo T. Crowley.
Exact title of your position : Assistant to Director.
Salary: Starting: .$8,000. Final: ,$8,000.
Duties and responsibilities: None given on form.
Place : Washington, D. C. From Feb. 1042 to June 1043.
Name of employer: Board of Economic Warfare, Washington, D. C.
Name and title of your immediate supervisor : Milo Perkins, Executive Director.
BEW.
Exact title of your position : Asst. to Exec. Dir.
Salary Starting: .$8,000. Final: $8,000.
Duties and responsibilities: As Special Asst. to the Executive Director of the
Board of Economic Warfare, assisted in coordinating the functions and
programs necessary to the carrying out of general program of economic
warfare.
INTERLOCKING SUBVERSION IN GOVERNMENT 981
riace : Washington, D. C. From Nov. 1941 to June 1942.
Name of employer : Joint War Production Committee, U. S. and Canada,
Washington, D. C.
Name and title of your immediate supervisor : Milo Perkins, Executive Director,
BEW.
Exact title of your position : Executive Secretary.
Salary: Starting: $8,000. Final: $8,000.
Duties and responsibilities : As Executive Secretary of the Joint War Production
Committee U. S. and Canada, U. S. Section, prepared and arranged reports to
he submitted by the Committee, supervised the preparation and analysis of
necessary statistics, maintained liaison with other interested agencies, and
carried out other business of the Committee as directed by the Chairman.
Place : Washington, D. C, and London, England. From June 1941 to Dec. 1941.
Name of employer : U. S. Treasury Dept., Washington, D. C.
Number and class of employees you supervised : Two.
Name and title of your immediate supervisor : Henry Morgenthau, Jr., Secretary
of the Treasury.
Reason for leaving : To resume duties at U. S. Treasury.
Exact title of your position : Spec. Asst. to Ambassador Winant, London, England.
Salary : Final, $9,000.
Duties and responsibilities : To advise and assist the Ambassador on financial
and any other related economic matters; to perform special tasks for the
Secretary of the Treasury. To supervise the financial work of the Embassy
including the preparation and supervision of financial reports to departments
in Washington. Work concerning the British and American exchange controls
and other matters.
Place : Washington, D. C. From Sept. 1940 to Feb. 1942.
Name of employer : U. S. Treasury Department, Washington, D. C, Div. of
Monetary Research.
Number and class of employees you supervised : 6 to 20 economists.
Name and title of your immediate supervisor : Harry D. White, Director.
Exact title of your position : Assistant Director.
Salary : Final, $7,000.
Duties and responsibilities: Under the direction of the Director («) the prepar-
ation of a number of memoranda and studies, ( b ) the supervision of research
work by others, (c) interviews, conferences, representing the Treasury on
outside committees, as instructed by the Director.
Place : Washington, D. O. From July 1940 to Sept. 1940.
Name of emijloyer : Advisory Commission to Council on National Defense, Wash-
ington, D. C.
Number and class of employees you supervised : Ten economists.
Name and title of your immediate supervisor: Leon Henderson.
Exact title of your position: Principal Economist.
Salary : Final, $7,000.
Duties and responsibilities : This position was that of the liaison between Mr.
Leon Henderson and («) a fiscal staff organized for this work and (b) other
financial economists in the Treasury, Federal Reserve, SEC, and other agencies.
Part of the duty was the organization of economists working on fiscal aspects
of price control.
Place : Washington, D. C. From Sept. 1939 to July 1940.
Name of employer : Federal Security Agency, Washington, D. C.
Number and class of employees you supervised : Secretary and research asst.
Name and title of immediate supervisor : Paul V. McNutt, Director, Federal
Security Agency.
Exact title of your position : Economic Consultant.
Salary: Final, $6,500.
Duties and responsibilities : Economic Consultant, serving as a channel to the
Administrator of the Federal Security Agency for economic information and
analyses prepared in the constituent agencies ; and consultant for the Ad-
ministrator on economic questions concerning the Social Security, Youth, and
other programs.
982 INTERLOCKING SUBVERSION IN GOVERNMENT
Place : Washington, D. C. From April 1939 to Sept. 1939.
Name of employer : U. S. Treasury Department, Washington, D. C.
Number and class of employees yoi; supervised : Several economists and
statisticians.
Name and title of your immediate supervisor : Harry D. AVhite, Division of
Monetary Research.
Exact title of your position : Principal Economist.
Salary : Final, $5,600.
Duties and responsibilities : Conducting independent research and carrying out
other tasks under Dr. White, the Director.
Place : Washington, D. C. From June 193G to Sept. 1936.
Name of employer : U. S. Trea.sury Department. Washington. D. C.
Number and class of employees you suiiervised : Several Economists.
Name and title of your immediate supervisor : George Haas.
Exact title of your position : Principal Economist.
Salary : Final, $6,000.
Duties and responsibilities : This was in the Division of Research and Statistics
in the Secretary's Office. The main project was a study of the indexes of
competitive position which related to international exchange and interna-
tional price problems. In addition, memoranda were prepared on a variety
of other problems connected with gold, silver, exchange rates, international
trade, and international capital movements.
Place : Toronto, Canada. From Sept. 1936 to April 1939.
Name of employer : Bankers' Educational Association, Toronto, Canada.
Kind of Business : This is a nonprofit organization of the banks of Canada,
which arranges for courses of instruction for personnel of these banks.
Exact title of your position : Lecturer.
Salary : $400 per month.
Duties and responsibilities : Lecturer in Money and International Finance.
Place : University of Toronto. From Sept. 1934 to May 1939.
Name of employer : University of Toronto, Toronto, Canada.
Kind of Business or Organization : Dept.. of Political Science, comprising both
Economics and Political Science.
Name and title of your immediate supervisor: E. J. Urwick, H. A. Innes.
Exact title of your position : Lecturer.
Salary: $2,800.
Duties and responsibilities : Lecturer in Economic Theory and Assistant Pro-
fessor of Economic Theory,
Place : Washington, D. C. From June 1934 to Sept. 1934.
Name of Einployer : U. S. Treasury Dept., Washington, D. C.
A special staff of economists was set up to study the monetary and banking sys-
tem of the U. S. and to prepare reports on needed changes.
Exact title of vour position : Economic Consultant.
Salary: Final, $4,200.
Duties and responsibilities: A study of the behavior of local government debt
during the preceding twelve years and of the extent to which changes in local
government debt policies offset federal fiscal policies. Studies of U. S. capital
markets, gold imports, exchange rates, and wage changes.
INTERLOCKING SUBVERSION IN GOVERNMENT 983
Place : Washinston. D. C. From Aug. 1933 to June 1934.
Name of eiuployer : Brookings Institution, Washington, D. C.
Kind of business or organization : The Brookings Institution is an endowed organ-
ization conducting research in economics and political science.
Number and class of employees you supervised : None.
Name and title of your immediate supervisor : Leverett Lyons.
Reason for leaving : Accepted new position.
Exact title of your position : Economist.
Salary : Final, $2,800.
Duties and responsibilities : Worked on a special study of the National Industrial
Recovery Act and its administration.
Place : Washington, D. C. From June 1933 to July 1933.
Name of employer : Nat'l Assn. of Manufacturers, Washington, D. C.
Number and class of employees you supervised : Three statisticians and several
clerks.
Name and title of your Immediate supervisor : Professor S. H. Nerlove, University
of Chicago.
Reason for leaving : Completion of job.
Exact title of your position : Economist.
Salary : Starting, $400 per month.
Duties and responsibilities : In charge of statistical work ; directing and gather-
ing, computation, and analysis of statistics relating to the men's clothing
Industry.
Place : Chicago, Illinois. From June 1930 to June 1931.
Name of employer : University of Chicago, Chicago, Illinois.
Kind of business or organization : This was an economic and statistical staff
financed out of special funds allotted to Prof. Schultz.
Name and title of your immediate supervisor : Henry Schultz.
Reason for leaving : Appointment was for one year.
Exact title of your position : Research Asst.
Salary : Starting, $1,200.
Duties and responsibilities : Under the direction of Prof. Schultz, to carry out a
study on statistical demand curves for certain agricultural products, using
methods developed by Prof. Schultz.
Place : Baltimore, Maryland. From Sept. 1928 to June 1980.
Name of employer : Johns Hopkins Institute of Law, Baltimore, Maryland.
Kind of business or organization : This was a pure research organization with the
objective of integrating law and the other social sciences. Four full professors
directed the work.
Number and class of employees you supervised : Several statistical clerks.
Name and title of your immediate supervisor : L. C. Marshall.
Reason for leaving : Endowment not attained.
Exact title of your position : Research Asst.
Salary : Final, $1,800.
Duties and responsibilities: Conducted independent research on (a) application
of economics to law, and ( &) on patent law.
Place : Chicago, Illinois. From Sept. 1926 to Sept. 1928.
Name of employer : University of Chicago, Chicago, Illinois.
Exact title of your position : Research Asst.
Salary : Starting, $750.
984
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 324
^^ TRUSTEE
AjtOBfitT
RUSTEES
tOBfitT S. MOOUNOI
RO^'B
WHrr^pocato R. COL
NOItUAN H DAVtS
FitfDeitIC A DELANO
CUUtENCE PHELPt DOCXS
JEAOUE O GSEENC
DAVID P. HOUSTON
VEJINON KfLXOCC
JOHN C MERRIAU
HAFOLO C MOIA.TOM
JOHN BARTON PATNB
BOLTON surm
^Ije ^rookhtga ^rtstitxttkm
1Sa»IjTngtcm, ^. (C
-^;;j
OFFICERS
ROBMT 5. BROOKINCS
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I . 5 ROWE.
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HENRY P SEIOEMANN.
HAROLD 0 MOULTON
Prniitnt.
lEVERBTT S LYON.
DARREU. H SMITH
ComfitnSlff.
722 JACKSON PLACE
U-^
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Exhibit No. 325
September 19, 1934.
The honorable the Secretary of the Treasury.
I siibniit herewith my re.signation as Economic Analyst in the Treasury Depart-
ment effective as of September 20, 1934.
ViRGINUS F. COE.
Forwardintr address : Department of Economics, University of Toronto,
Toronto, Ontario, Canada.
Exhibit No. 326
University of Toronto,
Department of Political Science,
Toronto 5, Canada, May Sth, 1936.
Dr. George C. Haas,
Director, DlviHion of Rcfscarel} and Statistics,
Treasurji Department, Washington, D. C.
AIy Dear Dr. Haas : Thank you for your letter of May 4th. I should be glad
to accept a summer appointment in your Division and would be able to arrive
there June 1st if that is convenient to you. Would you please notify me of the
outcome as soon as possible so that I can make the necessary arrangements.
Yours sincerely,
V. F. CoE.
INTERLOCKING SUBVERSION IN GOVERNMENT 985
Exhibit No. 327
[Telegram]
OFFICIAL BUSINESS GOVERNMENT RATES
Charge Treasury Department, Appropriation for Emergency Banking, Gold
Reserve and Silver Purchase Acts, 1935-1937.
Treasury Department,
Washington, May 20, 1936.
Mr. Frank Cob,
Department of Econofnics, University of Toronto,
Toronto, Canada.
You are appointed in Division Research and Statistics at salary of $500 per
month for three months beginning June 1st.
(Signed) Wm. H. McReynolds,
Administrative Assistant to the Secretary.
Exhibit No. 328
Treasury Department,
, Washington, September 18, 1936.
The Honorable, The Secretary of the Treasury.
Sir : I herewith submit my resignation as an Economic Analyst, at $6,000 per
annum. Emergency Banking Roll, in the Division of Research and Statistics,
effective as of the close of business on October 3, 19.36.
I am resigning to resume my teaching at the University of Toronto.
Yours respectfully,
V. F. Coe.
Exhibit No. 329
February 9, 1939.
Prof. V. F. Coe,
Department of Political Science,
University of Toronto, Toronto 5, Canada.
Dear Frank: The pressure of work is unfortunately increasing here and I
am wondering whether you would be able to help us out.
Would it be possible for you to secure a leave of absence for the academic
year 1939-40 in order to join our staff? There are numerous problems before
us that I know you are interested in and if you could arrange to come to Wash-
ington within the next mouth or two and plan to stay until the summer of
1940 I would appreciate it. The remuneration would be at the rate of $5,600
a year.
Please let me know as soon as possible.
Sincerely,
(Signed) H. D. White.
2/9/39 : Mailed by L. S.
986
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 330
tlniversiti? of Toronto
TORONTO S, CANADA
DEPARTMENT OF POLITICAL SCIENCE
273 BLOOR STREtT WEST
r^u ly. 1 s ■« <i .
CCONOMIC*
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*1
Exhibit No. 331
February 28, 1939.
Mr. Thompson.
Mr. Bell.
It is recommended that, effective as of April 1, 1939, Mr. V. F. Coe be apiiointed
in the Division of Monetary Research as a Principal Economic Analyst, EO-IG,
at .$r»,GOO per annum, payable from the appropriation, "Exchange Stal)ilization
Fund."
Mr. Coe will rejilace Mr. Frank A. Southard, who resigned as of the close of
business on Septeuil)er 15, 1938.
INTERLOCKING SUBVERSION IN GOVERNMENT 987
Exhibit No. 332
Treasury Department,
Division of Monetary Research,
Washington, Septemher 23, 1939.
Mr. H. D. White,
Director of Monetary Research,
Treasury Department, Washington, D. C.
Dear Mr. White : I hereby tender my resignation from the Division of Mone-
tary Research, Office of the Secretary, Treasury Department, effective at the
close of business September 25, 1939. I am resigning to accept a position as
Economic Advisor at the Federal Security Agency.
. I have enjoyed my work with you a great deal and I am very grateful for the
opportunity you have given me.
With best wishes,
Sincerely,
V. Fkank Coe.
Exhibit No. 333
Treasury Department
interoffice communication
Date : August 7, 1940.
To : Mr. Thompson.
From : Mr. White.
I should like to have Mr. V. Frank Coe appointed, at a salary of $7,000 a year,
to replace Mr. Glasser in the Division of Monetary Research. (Mr. Coe has
worked for the Treasury several times before.)
Mr. Coe is at present employed by the National Defense Council and receives
$7,000 a year. His chief has agreed to release him for work in the Treasury.
Hand written memo : Asst. Director, Monetary Research, $7,000, Ex. Stab. ;
estab. eff. date of oath for Secy's, signature. •
Exhibit No. 334
August 7, 1940.
Mr. V. Frank Coe,
Washington, D. C.
Sir : You are hereby appointed, effective date of oath, Assistant Director of
the Division of Monetary Research, with compensation at the rate of $7,000 per
annum, payable from the appropriation, "Exchange Stabilization Fund."
Very truly yours,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
988 INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 335
5683
Ton D.1S>^
U, S. TKEASURY DEPAETMEST
division of Monetary Bese^roh
(Office)
APFIDAVIT REQUIBED BY TH2 at3RGENCY RELIEF
APPROPRIATION ACT, FISCAL YEAH 1941
I» V- EranJc Coe do solennly swear
(or ftfflm) that (l) I am a citizen o.f the United States, nnd
thfit (2) I do not and will not adrocp.tc the overthrow of tho
Govcrnncnt of tho Unitod Stfitcs, and th,-t (3) I sa not a memter
of an organization and vill not becono a nenber of an org.-.niza-
tion that advocates the overthrow of the Govcrnncnt of tho
United States,
I further solemnly swear (or affim) that (4) I an not
an alien, nor a Coammlst, nor a ncnbcr of an;/ Nazi Bund Organi-
zation, and that I will not becono a Coanunist or a member of
any Nazi Bund Organization during any time I aay bo paid fron
funds appropriated by the Emergency Relief Appropriation Act,
fiscal year 1941,
(signature)
Subscribed and sworn to before no at W^shinston, 3.C.,
thiE *^ — ^day of CjAy^^ , 19 UQ.
(Nane) y ^ V^^v^^ Cl^'^rJ'-^'^'-CC'-^ '
(Titlcl "OTABY PUBLIO; P. C.ti
*r Cimat 3^,10^ 6jif>Ires July 51, X'iity
^1
Exhibit No. 336
Treasury Department
interoffice communication
Date : August 17, 1940.
To : Mr. H. W. Stutler, Per.«ionnel Division.
From : H. D. White.
It is requested that the appointment of V. Frank Coe as Assistant Director
of the Division of Monetary Research be made effective Aug. 13, 1940.
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 337
989
The Advisory Commission to the Council of National Defense,
Federal Reserve Building, Washington, D. C, August 20, 1940.
Mr. H. D. White,
Director of Monetary Research, Treasury Dcpnrtment,
WasMiigton, D. C.
Dear Mr. White: In compliance with your request of August 16, 1940, the
following information is furnished with regard to Mr. V. Frank Coe :
Date of Appointment : July 1, 1940.
Date of Separation : August 11, 1940.
Nature of Appointment : Excepted Appointment in accordance with Executive
Order No. 8257, dated September 21, 1939.
Accumulated leave as of Jan. 1, 1940:
Annual
Sick
Total leave granted during current calendar year
Annual
Sick (without medical evidence)
Days
Hours
Minutes
1
42
0
0
Respectfully,
Margaret Holmead,
Chief, Personnel Section.
Exhibit No. 338
United States Civil Service Commission Classification Sheet
Check to indicate whether sheet is for — New position : X.
Give following information for item checked (Temporary or permanent)
Permanent.
Classification
Service
Grade
Class
Initials
Recommended by Bureau
Allocation by head of Department.
P
P
120
120
1. Name : Coe, V. Frank.
2. C. S. C. number of last sheet for this employee :
3. Employee's present basic annual salary rate: $7,000.
4. Allowances (deduction for Q. S. L., etc.) (Character and value) :
5. Department : Treasury.
6. Bureau: Secretary's OfHce.
7. Division : Monetary Research.
8. Section or unit :
9. Title of position : Assistant Director of Monetary Research.
10. Description of the duties and responsibilities of the position: (Describe, as
objectively and concretely as possible, the duties and responsibilities of the
position in question, following this order: (1) Kind and extent of super-
vision or direction under which the work is performed; (2) the major,
regular, periodic, or more important tasks, indicating proportion of time ;
(3) the tasks of lesser frequency or importance, indicating proportion of
time ; (4) any supervisory responsibility, showing the number of employees
in each grade suijervised ; and (5) any other facts or figures bearing upon
the characteristics of the position from the standpoint of difficulty, com-
plexity, responsibility, independence of action or decision, or any other allo-
cation factor.)
990 INTERLOCKING SUBVERSION IN GOVERNMENT
Under administrative direction with very wide latitude for independent or
unreviewed action and decision as Assistant Director of tiie Division of Monetary
Researcli assists tlie Director in planning, sujpervising, and directing the work
of the Division of Monetary Research, which is charged with the preparation
of analysis and recommendations to aid tlie Secretary of the Treasury and other
Treasury officials in the formulation and execution of policies in connection with
the Stahilization Fund, Customs and Tariff problems, Foreign Funds Control, tlie
National Defense Program, fiscal and monetary problems, etc. Supervises group
of economic analysts in gi-ades P-1 to P-6 engaged in conducting research, making
economic analysis and studies and preparing memoranda and reports in the fol-
lowing fields: (1) economic, financial, and political conditions of foreign coun-
tries involving analysis of current financial data, country surveys of the domestic
and international economic situation, and analysis of new developments for one
of the following geographical areas: Latin America, Continental Europe, Far
East, and British Empire; (2) International investments including U. S. for-
eign investments, blocked and other involuntary investments, foreign holdings
in the U. S., foreign assets of the United Kingdom, and other allied and axis
foreign assets; (3) foreign commercial policy involving such matters as dumping,
Tarilf Act and Customs problems, countervailing duties, foreign discrimination,
export control, strategic material, and other U. S. foreign commerce problems;
(4) exchange control including statistics, economic information and analysis of
Foreign Funds Control in both this country and abroad, with special emphasis
upon analysis of information and statistics made available through Foreign
Funds Control; (5) international money and finance including gold-silver, ex-
change rates, capital movement, international monetary agreements, and foreign
monetary systems — legislation; (6) banking and domestic finance including
U. S. economic conditions. Treasury finance, and the national economy, currency
and coinage, banking problems, monetary and banking legislation, and problems
of inflation; (7) Stabilization funds including both U. S. and foreign stabiliza-
tion funds, stabilization operations, and international competitive position.
]\Iore specifically, incumbent performs such duties as follows : advises and con-
sults with the Director of the Division in the determination of policies and work
programs of the Division and in the formulation of conclusions and recom-
mendations ; serves as an alternate for the Director on various interdepart-
mental committees and subcommittees; plans, directs, and reviews work per-
formed by Monetary Research in one or more of the fields described above ;
receives general assignments from the Directoi', or more frequently, on own
initiative plans and supervises various projects and studies consisting of both
long-term comprehensive projects and short studies dealing with specific ques-
tions, problems or events ; attends Congressional debates and hearings and various
conferences and meetings, which are pertinent to the work of the Division ;
analy.ses, evaluates, criticizes, and comments on various proposals, schemes,
or plans of an economic or financial nature; occasionally serves as a foreign
representative of the Treasury Department or as a member of a delegation
at foreign conferences.
11. (a) For what purpose is any part of the work described above reviewed
within the same organizational subdivision or unit?
(6) Give the usual organizational title of the reviewer or reviewers.
12. Give name and usual organizational title of employee's immediate supervisor:
Harry D. White, Director of Monetary Research.
13. Give actual qualifications (education, training, experience, etc.) of employee;
or, if the position is a vacancy, the qualifications necessary for the work.
EDUCATIONAL TRAINING
Indicate the highest grade or year: Elementary school: 7. High school: 4. Col-
lege : 4. Name : University of Chicago, I'h. B. in 192G. Technical or post
graduate : Kind and extent graduate work at U. of Chicago, 1926-28, 1930-32.
INTERLOCKING SUBVERSION IN GOVERNMENT 991
EXPERIENCE AND OTHER SPECIAL QUALIFICATIONS
2 years Research Assistant at Johns Hopkins U.
I year Research Assistant at Broolvings Institute.
5 years Assistant Professor of Economics, at U. of Toronto, Toronto, Canada.
3 mos. Consulting Economist with Nat'l Adv. Defense.
9 mos. Prin. Cons. Economist with Fed. Security Agcy.
II mos. Economist with Treasury.
Aug. 13. 1940, to June 26, 1941— Asst. Dir. of Div. of Monetary Research.
June 26, 1941 — Special Assistant to the Amer. Ambassador to Great Britain.
14. Date when employee entered upon the duties and assumed the responsibilities
described above : July 1, 1941.
Charles S. Bell,
Assistant Administrative Assistant to the Secreto/ry.
Exhibit No. 339
May 2, 1941.
Mr. V. F. CoE,
Assistant Director of Monetary Research, Treasury Department.
Dear Mr. Coe : You are hereby designated to act as my alternate on the
National Munitions Control Board. The duties of the Board are outlined in
Section 12 of the Neutrality Act of 1939, approved November 4, 1939, a copy of
which act is attached.
Very truly yours, *
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
See File of Mr. V. F. Coe.
Exhibit No. 340
Mat 2, 1941.
The Honorable The Secretary of State.
Dear Mr. Secretary : Please be advised that I have designated Mr. V. F. Coe,
Assistant Director of Monetary Research, to represent me, as my alternate, on
the National Munitions Control Board.
Very truly yours,
(Signed) H. Morgenthau, Jr.,
See File of Mr. V. F. Coe.
Exhibit No.
Secretary of the Treasury.
June 26, 1941.
Mr. V. Frank Coe,
Care of the Treasury Department, Washington, D. C.
Sir : You are hereby appointed Special Assistant to the American Ambassador
to Great Britain for such period of time as may be necessary for the performapce
of the duties to which you will be assigned.
If you will inform the Department of State of the date of your contemplated
departure for London, it will make the necessary arrangements for priority in
connection with your air travel from New York to London.
Very truly yours,
G. HowLAND Shaw,
Assistant Secretary.
(For the Secretary of State).
992
INTERLOCKING SUBVERSION IN GOVERNMENT
Exhibit No. 342
Form 3201— (April 1935)
D. S. CIvU Ssrrloa Commlaalon
CLufflnunoN SruBOLS j
Service
Orede
Cl»ra
EO
18
SERVICE RATING FORM
(Read Inatructloas oa btrk o( this form)
Check one:
SupervUory ..__ ^
Nonsupervisory LJ
Coe, V. Frank
Name "^^^l.llJI^l _...: Department ..l^Ifil^X..
i?.?.^A9®..?.?...^l}?...?£.9J:?.t?-.':X Division, of. Monet arj:..Iie3ea,r.c]l
(Bureau) (Division) (Section) ("subaKtion)
On llnea below
BAfk csnploreef
1^ If oeltfaer strong
Dor weak polot.
— 11 weak point.
+ U strong point.
1. Underline the elements which are especially important in the position.
2. Mark nonsupervisory employees on all elements except those in italics.
3. Mark supervisory employees on all elements.
la bona below rmie eaiilayvet
1 or 3 If Einllent.
3 or 4 ir Vtry Oood.
tor 6 U Oood.
7 or 81/ Fair.
t or 10 U Unatbftctarr.
-t"- (a)
-t- (b)
-f - (c)
.p. (d)
I. QUALITY OF PERFORMANCE
Thoroughness; adequacy of results.
General dependability; accuracy of results.
Technical skill with which the important procedures or instruments are
employed in performing his duties. ,
Original contributions to method or knowledge.
Effectiveneaa in jotting good work done by hia unit.
Bktli«
OBew
If. PRODUCTIVENESS
Amount of work accomplished.
Application of energy, interest, and technical resources to duties; industry.
Effectiveness in planning so as to utilize time to best advantage.
Completing assignments; making progress on assigned projects.
Composing adequate reports or other reqtiired writings.
..f^Ca)
...yr. (b)
..^. (c)
...fr (d)
..:f7. (e)
CBt«t« aoy othor eiamenu of tKl« ola« ooaaidar«d>
.i^- ig) Effectiveness in securing adequate output from hia unit.
ZK
~±. (a)
_r.. (b)
Jf--. (c)
-#-- (d)
^.. (e)
■4:. (f)
(k)
Kated by
Keviewed by .
III. QUALIFICATIONS SHOWN ON JOB
Knowledge of particular field of work and of the fundamenuls on
which it is based. — _
Analytical ability; constructive reasoning in the field of specialization.
Scientific or professional attitude; fairness, freedom from bias.
Judgment, sense of proportion, common sense.
Initiative, resourcefulness; ability to grow.
Cooperativeness; ability to work with and for others.
(9t«t« AAy other al.meQU of thia -' — ooa«idar*d>
Effectiveneaa in developing and training employees.
iiU
'N
(KatiDg olIkcer>
(Date)
(Heviewlog olTicer)
(Dale)
Sum of ratings . .
Report to employee .
On the whole, do you consider
the deportment and attitude
of this employee toward his
work to be satisfactory? . . .
J>
(Aoswer 'froa", "No", or "Fmiriy so")
Sum of lUtlnfs Report to Employee
a - 7 Eicellent.
8-13 Very QckhI.
M - 19 Oood.
aO- 24
2S-30
Fair.
Unsatisfactory.
Slgniaeance
Promotable within grade if below top salary,
Promotable within grade If below top salary.
No salary change if receiving middle salary or above- 1/
below middle, proniutable not beyond EttiddJe salary.
Reduce one step if above middle salary.
DUmls6 from present [>o&itloiL
INTERLOCKING SUBVERSION IN GOVERNMENT 993
Exhibit No. 343
Board of Economic Warfare,
Office of the Executive Director,
Washington, D. C, December 31, 19.^1.
Mr. Harry White,
Division of Monetary Research,
The Treasury Department, Washington, D. G.
Dear H^ujry : As you know, Frank Coe has been acting as Executive Secretary
of the .Joint War Production Committee — United States and Canada. The work
is getting much heavier and I very much need him on a full-time basis, anyway
for the next 90 days, I did not ask this until I got in a jam and I hope you can
work out a way of granting it. He would be in our British Empire Division
which is run by Bill Stone and would, of course, be doing a great deal of work
for me i^ersonally on the Committee.
I hope you can work it out.
Sincerely yours,
MiLO,
Executive Director.
DRAFT statement OF DUTIES
1. To act as Executive Secretary of the Joint War Production Committee —
United States and Canada, United States Section, and under the direction of the
Executive Director of the Board (and the Chairman of the Committee) to
conduct necessary correspondence of the Committee, arrange meetings of the
Committee and its subcommittees, maintain the records of the Committee, pre-
pare and arrange for reports to be submitted to the Committee, supervise the
preparation and analysis of necessary statistics, maintain liaison with other
interested agencies, and carry out other business of the Committee as directed
by the Chairman.
2. To prepare memoranda for the Director of the British Empire Division,
furnish reports concerning the War Production Committee, maintain liaison with
related work of the Division, and carry out other duties as directed by the
Director of tlie British Empire Division.
Exhibit No. 344
Board of Economic Warfare,
(Formerly Economic Defense Board),
Washington, D. C, January 21, 1942.
Director of Personnel,
Treasury Department, Washington, D. C.
Dear Sir : Will you please advise whether the Treasury Department will
interpose any objections to the release of Mr. V. Frank Coe, Assistant Director
of Monetary Research, for transfer to the Board of Economic Warfare as Execu-
tive Secretary to the Chairman of the "Joint War Production Committee of the
United States and Canada." at Grade CAF-15, $8,000 per annum.
Since Mr. Coe's services are essential to the immediate operation of this
committee, it will be appreciated if you will let us know the earliest date he can
be released for duty if you concur in this transfer.
Very truly yours,
John M. Simmons,
Personnel Officer.
Exhibit No. 345
January 80, 1942.
Mr. John M. Simmons,
Personnel Officer, Board of Economic Warfare,
Washington, D. C.
Dear Mb. Simmons : Reference is made to your letter of January 27, 1942,
your file number AM-3-JMS, addressed to the Director of Personnel and re-
994 INTERLOCKING SUBVERSION IN GOVERNMENT
questing to be advised whether the Treasury Department will release Mr.
X. Frank Coe to work with the Board of Economic Warfare at $8,000 per year,
CAF-15.
The Treasury Department will interpose no objection to Mr. Coe's transfer
from this office, and he can be released for duty with your Board on February 2,
1942.
^'ery truly yours,
H. D. White,
Assistant to the Secretary.
Exhibit No. 346
Treasury Department,
Division of Monetary Research,
Wasliinrjton, January 31, 19^2.
The Honorable The Secretary of the Treasury,
Washington, D. C.
Dear Secretary Morgenthau : Will you please accept my resignation from
the position of Assistant Director of the Division of Monetary Research in
the Treasury Department, effective at the close of business February 1, 1942.
Mr. White, I understand, has told you the reasons for my resignation. I want
to add something, now that, because I am leaving, I can do it without fear of
flattering. This is that, though I want to make the change, I am very sorry
to lose the boss. Because I admire the things you try to do and your courage
in pushing for them, I would rather work under you than under anyone in
Washington. I feel the same about Harry White, who, in my opinion, is the
best example of how an economist should serve his chief and his Government.
Thank you for many kindnesses.
With best wishes.
Yours sincerely,
Frank Coe.
(V. F. Coe)
Exhibit No. 347
February 7, 1942.
Mr. V. Frank Coe,
Assistant Director of Monetary Research,
Treasury Department.
Dear Mr. Coe: Thank you for your note of January 31, 1942. and for your
kind remarks. I am sorry you are leaving the Treasury. Your help in a
difficult period has been much appreciated. I wish you every success in your
new position.
Sincerely,
(Signed) H. Morgenthau, Jr.,
Secretary of the Treasury.
Exhibit No. 348
Board of Economic Warfare,
Washington, D. C, August 6, 19-'/2.
office of the executive director
Personnel No. 3 : Apiiointments.
Memorandum No. 22.
Distrilmtion : DS.
Mr. V. Frank Coe and IMr. James L. McCamy have been appointed as assistants
to the Executive Director.
MiLO Perkins,
Executive Director.
INTERLOCKING SUBVERSION IN GOVERNMENT 995
Exhibit No. 349
Kecommendation for Classification
under the ram speck act and section 1 of executive order no. 8743
Board of Economic Warfare,
Washington, D. C, November 5, 1942.
Civil Service Commission,
Washington, D. C.
Gentlemen :
1. The employee named below, who, on July 1, 1941, occupied a position which
has been brought into the classified service by operation of the Ramspeck
Act, and Executive Order No. 8743, of April 23, 1941, and who on January
1, 1942, occupied a permanent position, is recommended for classification
under section 1 of that Order. To be made effective as of the date of this
recommendation.
Name : V. Frank Coe.
2. Position held on July 1, 1941 :
(o) Designation: Spec. Asst. to American Ambassador in Great Britain.
(6) Grade and salary : EO-19, $9,000 per annum.
(c) Bureau or service : Treasury.
(d) Official station: London, England.
(e) Cite legal authority for appointment and funds from which paid on
July 1, 1941 : Exchange Stabilization funds.
Position held on date of this recommendation :
(a) Designation: Executive Secretary.
(&) Grade and salary : CAF-15, .$8,000 per annum,
(c) Bui'eau of service : Board of Economic Warfare.
id) Official station : Washington, D. C.
(e) Cite legal authoritv for apiwintment and funds from which paid on
January 1, 1942 : E. O. 88.33, Exchange Stabilization funds.
3. On .January 1, 1942, was employee: (a) Actually in a pay status? Yes.
(ft) On authorized annual or sick leave? No. (c) On furlough or leave
without pay? No.
4. Was employee in a nonpay status at any time between July 1, 1941, and
January 1, 1942? No. If so, give specific dates:
5. Is employee entitled to military preference? No. If so, preference was estab-
lished in n Commission's central office. D Commission's
district office. If preference is claimed but has not been established,
furnish Form 14 and proof specified thereon.
6. I certify that this employee was in the service on July 1, 1941, and has served
with merit thereafter for not less than 6 months. Furnish record of service
from July 1, 1941, to date. If part of this service was in another agency,
give full information so that record may be identified. Use space below if
desired.
6/25/41 : Ch. Status to Special Assistant to Ambassador in Great Britain,
EO-19, $9,000 per annum, London, England (Treasury Department).
12/3/41 : Ch. Status to Assistant Director of Monetary Research, P-7, $7,000
per annum, Washington, D. C. (Treasury Department).
2/2/242 : Transfer to Board of Economic Warfare under Executive Order SS33
as Executive Secretary, CAF-1.5, .$8,000 per annum, Washington, D. C Under
general direction of the Executive Director of the Board of Economic Wai-fare,
who has been designated by the President to serve as Chairman of the Joint War
Production Committee of Canada and the United States, to serve as Executive
Secretary to the Committee and to generally serve in the place of the Chairman
who is preoccupied with a number of other responsibilities in the economic war-
fare effort; to direct surveys and analysis of the scarcity of raw materials and
goods as they relate to these countries, preliminary to the allocation and distri-
bution according to the basic needs ; to direct studies and proposals facilitating
legislation designed to remove administrative barriers, including tariffs, import
duties, customs, and other regulations or restrictions of any character which
would prohibit, prevent, delay, or otherwise impede the free flow of necessary
munitions and war supplies between the United States and Canada or suspend
996
INTERLOCKING SUBVERSION IN GOVERNMENT
or otherwise eliminate for the duration of the war ; to recommend policy and
procedure which would achieve or facilitate the maximum volume and speed up
war outputs on a uniform scale, involving the integration of the resources of
both countries ; to collaborate with the Chief of the British Empire Division of
the Board of Economic Warfare on any proposals that may arise in connection
with the activities of the Committee and the British Empire Division ; and to
perform other duties as assigned by the Chairman of the Committee.
Francis R. Poore,
Chief, Personnel Division.
Exhibit No. 350
Office of Lend-Lease Administration,
Washi77gton, D. C, June 21, 1943.
Mr. George Stephenson,
Board of Economic Warfare,
l-'/tli and Constitution Are., Washington, D. C.
Dear Mr. Stephenson : I am sending you attached two copies of the schedule
of the Lend-Lease School beginning tomorrow Tuesday, June 22.
In accordance with our recent conversations, Mr. V. Frank Coe appears on
this schedule Wednesday, June 30, at 4 : 45 p. m. for forty-five minutes to talk
about the work of the "Board of Economic Warfare." Your cooperation is
greatly appreciated.
In regard to your sending candidates to the school I regret very much, owing
to the enrollment being much larger than we can handle with our present accom-
modations, that it was necessary for us to ask you to refrain from sending any
of your people, however, we hope to run another school in the very near future
and send you invitations for several people to come at that time.
Sincerely yours,
James J. Townsend,
Training Division.
The Lend-Lease School, June 22-Juhj 5, 19Jf3. Time:
Conference Room B-2
4:00 to 5:00 p. m..
Time
Subject
Speaker
Tuesday, June 22:
4:00p. m
4:1.") p. m
4:30 p. m
Wednesday, June 23,
4:00 p. m
5:00p.m
Thursday, June 24:
4:00p.m
5:10p.m
Friday, June 25:
4:n0p.m
4:45 p. m
Saturday, June 26:
4:00p. m
Monday, June 28:
4:00p.in
4:15 p. m
4:45 p. m
Tuesday, June 29:
4:00 p. m
4:45 p. m
Wednesday, June 30:
4:00p. m
4:45 p. m
Thursflay, July 1:
4:00 p. m
4:45 p. m
Friday, July 2:
4:00 p. m
4:50 p. ni
5:15 I), m
Monday, July 5:
4:00p.m
Introductory Talk
Short Talk .._
Philosophy of Lend-Lease
History of Lend-Lease
Organization of Lend-Lease
Lend-Lease and Other Government Agencies
The work of the Legal Staff...
Foreign Liaison Division
Clearance of Requisitions
Liaison with the U. S. S. R
Operations Division
Transportation and Storage Division
Requirements and Allocations: Topside View
Handling Specific Requirements
Food and Agricultural Machinery
Office of Foreign Relief and Rehabiliation
Board of Economic Warfare
Liaison with the War Department and War Department Lend-
Lease.
Lend-Lease in the Field
Reciprocal Aid
Keeping the Records
Liaison for Information
Written Quiz on the Course _.
Mr. Knollenberg.
Mr. Stetfinius.
Mr. Van Buskirk.
Mr. Young.
Mr. Lynch.
Mr. Buckley.
Mr. Ball.
Mr. Orchard.
Mr. Simmons.
General Wesson.
Mr. Hazard.
Mr. Martin.
Lt. Cmdr. Watson.
Mr. Miller.
Mr. Lehensburger
Mr. Spence.
Mr. Anderson.
Mr. Coe.
General Spalding.
Mr. Stillwell.
Mr. Denby.
Mr. Acheson.
Mr. Kurth.
Mrs. Castle.
The Student.
INTERLOCKING SUBVERSION IN GOVERNMENT 997
Exhibit No. 351
United States Civil Service Commission
Classification Sheet
C. S. C. No. 10.
Bureau No. 6A.
Code
Check to indicate whether sheet is for — New position : X.
Give following information for item checked (Temporary or permanent) :
Indefinite.
Classification
Recommended by bureau
Allocation by head of department
Allocation by Civil Service Commission
Service
CAF
CAF
CAF
Grade
15
15
15
Class
130
130
130
Initials
Date: Jan. 13, 1944.
1.
i!
4.
Name : Coe, V. Frank.
C. S. C. number of last sheet for this employee :
Employee's present basic annual salary rate :
Allowances (deduction for Q. S. L., etc.) (Character and value):
5. Department : Foreign Economic Administration.
6. Bureau : Office of the Administrator.
7. Division : Otfice of Economic Programs.
8. Section or unit :
9. Title of position : Assistant Administrator — CAF-15.
10. Description of the duties and responsibilities of the position : (Describe, as
objectively and concretely as possible, the duties and responsibilities of the
position in question, following this order: (1) Kind and extent of supervi-
sion or direction under which the work is iierformed; (2) the major,
regular, periodic, or more important tasks, indicating proportion of time ;
(3) the tasks of lesser frequency or importance, indicating proportion of
time; (4) any supervisory responsibility, showing the number of employees
in each grade supervised; and (.5) any other facts or figures bearing upon
the characteristics of the position from the standpoint of difficulty, com-
plexity, responsibility, independence of action or decision, or any other
allocation factor.)
Under the general direction of the Administrator, and subject to such policies
and directives as may be prescribed by that official, serves as Assistant Admin-
istrator in charge of the Office of Economic I'rograms, with responsibility for
analyzing, developing, and recommending basic policies and broad programs for
approval by the Administrator to achieve the objectives of the Foreign Economic
Administration.
Specifically : Plans, directs, and coordinates a staff of consultants and econo-
mists engaged in the study and analysis of projects and programs of international
scope, such studies embracing past, present, and contemplated programs of world-
wide economic trade and financial significance.
Directs the study of, in collaboration with officials in the operating divisions,
the major impediments to the successful execution of their functions and is
responsible for developing procedural changes or other remedial measures which
will smooth out operating difficulties.
Advises the Administrator on the effectiveness of existing programs and
projects, pointing out the relative strengths and weaknesses of various segments
of the total program ; recommends revision in basic policies and broad programs
in order to achieve the objectives of the Foreign Economic Administration.
In consultation with the budget officer of the Administration, recommends to
the Administrator financial requirements for proposed programs and allocations
to programs of funds made available therefor ; as'sists the Administrator in the
presentation of budget estimates to the Bureau of the Budget and Congress.
Prepares or directs the preparation of special and/or periodic reports for the
President and Congress, marshaling such data in the form of pi-ogress reports
from the operating divisions of the Administration as may be necessary in the
998
INTERLOCKING SUBVERSION IN GOVERNMENT
preparation of the above ; advises the Administrator with respect to policies and
programs involving reciprocal lend-lease matters.
11. (a) For what purpose is any part of the work described reviewed within the
the same organizational subdivision or unit?
(6) Give the usual organizational title of the reviewer or reviewers.
12. Give name and usual organizational title of employee's immediate supervisor:
Leo T. Crowley, Administrator, Foreign Economic Administration.
13. Give actual qualifications (education, training, experience, etc.) of employee;
or, if the position is a vacancy, the qualifications necessary for the work.
14. Date when employee entered upon the duties and assumed the responsibilities
described above.
Caret Shaw, Jr.,
Personnel Officer.
E. W. Adams,
Classification Officer.
Date : January 6, 1944.
Exhibit No. 352
personnel recommendation
United States Treasury Department,
Washinffton, D. C, February I4, 1945.
To Director of Personnel :
Name : Coe, Frank V.
From : Division of Monetary Research.
Nature of Recommendation : Transfer.
Position
Grade
f-alary
Bureau or Div.
Headquarters. _
Post of Duty...
Appropriation..
Field or DeptL
From—
Assistant Administrator
CAF-15
$9,000 per annum
Offlce of Econ. Programs,
Economic Administration.
Washington, D. C
Washington, D. C
Foreign
Departmental-
To—
Director of Monetary Research.
P. 8.
$9,000 per annum.
Div. of Monetary Research.
Washington, D. C.
Washington, D. C.
Exchange Stabilization Fund.
Departmental.
Civil service or other legal authority: War Service Reg. IX, Sec, 2 (b) ; File
No : XS : T : mp F-8.501 dated 2-15-45.
Appropriation : ESFR,
Date of birth : 1-5-07.
Legal residence: Kentucky.
Sex: M. Race: W.
Subject to Retirement Act? Yes.
Effective : February 16, 1945.
Remarks : Without reemployment rights.
Approved :
H. O. White,
Bureau or Division Head.
D. W. Bell,
Acting Secretary.
Exhibit No. 353
Febkuaky 16, 1945.
Mr. V. Frank Coe,
Washinffton, D. C.
Sib: You are hereby appointed Director of Monetary Research, CAF 15, with
compensation at the rate of $9,000 per annum, payable from the appropriation,
"Exchange Stabilization Fund," effective today.
Very truly yours,
(Signed) H. ]\Iorgenthau, Jr.
Cross reference made.
INTERLOCKING SUBVERSION IN GOVERNMENT 999
Exhibit No. 354
^^'Jl,rS.Tr:^.%'^ PERSONNEL AFFroAVIT
(^''cbruary 1, iJiit
U. S. TREASURY DEPARTMENT
DITISIOM OF MOMETAXY RESEARCH D. C.
(Bureau or Diviiioo) (Place of employmeot)
I, J-,' ;..: : do solemnly swear (or affirm) that
(1) I am a citizen of the United States, and that (2) I do not and will not advocate the over-
throw of the Government of the United States by force or violence, and that (3)1 am not 6,
member of an organization and will not become a member of an organization that advocates
the overthrow of the Government of the United States by force or violence, and that (4) I do
not and will not advocate, nor am I a member of any political party or organization which advo-
cates the overthrow of our constitutional form of government in the United States, nor will I
become a member of such organization.
I further solemnly swear (or affirm) that (5) I am not an alien, nor a Communist, nor a
member of any Nazi Bund Organization, and that I will not become a C!ommunist or a mem-
ber of any Nazi Bund Organization during such time as I am an employee of the Federal
Government.
I (Signatu
Subscribed and sworn to before me at . ?:IMy.25??iL__P_'._?^-
this -A.^ f^ day of y^^koA^JZ^a^. , 194^
(Name) r-^^Cc</l^^
Deslguated to adfflinietpr oaths, ,m.,, ,
B^^-206 Indepen<3ent Offices (Jiile)
^propriation Aat, 1944
I6-~?7132-1 0- •- coriaNimt Miniiiift ofPiCC
Exhibit No. 355
Tkeasuby Department
washington
Press Service No. 4.5-21.
For release, morning newspapers, Monday, February 19, 1945.
Secretary Morgenthau today announced the appointment of Frank Coe to
be Director of tlie Treasury's Division of Monetary Researcli, a position formerly
held by Dr. Harry D. White who was recently made Assistant Secretary of the
Treasury.
1000 INTERLOCK
3 9999 05445 3566
ENT
Mr. Coe returns to the Treasury from the Foreign Economic Administration
where he has been Assistant Administrator. He has held a number of other
positions in the Government, including that of Executive Secretary of the Joint
War Production Committee of the United States and Canada, Economist for the '
National Advisory Defense Commission, and the Federal Security Agency, and
Special Assistant to the United States Ambassador to Great Britain. He was
Technical Secretary General of the International Monetary Conference held in
Bretton Woods last year. Mr. Coe first entered the Treasury in 1934 and has
served there in a number of positions including that of Assistant Director of
Monetary Research.
Mr. Coe is 38 years old; he is a native of Richmond, Virginia ; was educated
in the University of Chicago and has served on the staffs of Jolms Hopkins
University, the Brookings Institute, and the University of Toronto. He is mar-
ried and has two children. The family home is at 2700 36th Street NW.,
Washington.
Exhibit No. 356
Treasury Department,
Division of Monetary Research,
Washington, June 10, 19ff6.
Honorable Fred M. Vinson,
Secretary of the Treasury.
My De.\r Mr. Secretary: This is to siibmit my resignation as Director of the
Division of Monetary Research in order to join the staff of the International
Monetary Fund. As you know, this action is in accord with plans discussed
over some time, and the Division is fuUy prepared for the change. I shall, of
course, be glad to assist the incoming Secretary of the Treasury and the succeed-
ing Director of the Division in any way that is desired.
On resigning, I would like to thank you for your personal kindness and to pay
tribute to your splendid leadership in the field of international finance. As
('hairman of the National Advisory Council on International Monetary and
Financial Problems, you have successfully guided the Council through financial
problems of unprecedented magnitude and complexity. As the Secretary of the
Council in this period, I know the Council has been able to reach agreed solu-
tions of the important problems before it because of your vigorous and wise
chairmanship.
Along with myself, the staff of the Division wishes you success in the important
position to which the President has appointed you.
Very truly yours,
Frank Coe,
Director of MoiH^fory Research.
X
INTERLOCKING SUBVERSION IN
GOVERNMENT DEPARTMENTS
HEARINGS .-..■■.:„.
BEFORE THE
SUBCOMMITTEE TO Il^VESTIGATE THE
ADMINISTRATION OF THE INTERNAL SECURITY
ACT AND OTHER INTERNAL SECURITY LAWS
OF THE
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE
EKJHTY-THIRD CONGRESS
FIRST SESSION
ON
INTERLOCKING SUBVERSION IN GOVERNMENT
DEPARTMENTS
OCTOBER 28, 29, NOVEMBER 12, 17, 18, 23,
AND DECEMBER 2, 1953
i
PART 15
Printed for the use of the Committee on the Judiciary
UNITED STATES
GOVERNMENT PRINTING OFFICE
32918 WASHINGTON : 1953
Boston Public LDrary
Superintendent of Documents
FEB 2 3 1954
COMMITTEE ON THE JUDICIARY
WILLIAM LANGER, North Dakota, Chairman
ALEXANDER WILEY, Wisconsin I'AT McCARRAN, Nevada
WILLIAM E. JENNER, Indiana HARLEY M. KILGORE, West Virginia
ARTHUR V. WATKINS, Utali JAMES O. EASTLAND, Mississippi
ROBERT C. HENDRICKSON, New Jersey ESTES KEFAUVER, Tennessee
EVERETT Mckinley DIRKSEN, Illinois OLIN D. JOHNSTON, South Carolina
HERMAN WELKER, Idaho THOMAS C. HENNINGS, Jr., Missouri
JOHN MARSHALL BUTLER, Maryland JOHN L. McCLELLAN, Arkansas
Subcommittee To Investigate the Administration of the Internal Secxjeity
Act and Other Internal Security Laws
WILLIAM E. JENNER, Indiana, Chairman
ARTHUR V. WATKINS, Utah PAT McCARRAN, Nevada
ROBERT C. HENDRICKSON, New Jersey JAMES O. EASTLAND, Mississippi
HERMAN WELKER, Idaho OLIN D. JOHNSTON, South Carolina
JOHN MARSHALL BUTLER, Maryland JOHN L. McCLELLAN, Arkansas
Robert Morris, Chief Counsel
Benjamin Mandel, Director of Research
II
CONTENTS
Testimony of— Pas«
Ismail Ege (Ismail Gussevnovich Akhmedoff), October 28 and 29,
1953 _" 1001-1029, 1047-1067
Clarence F. Hiskev, October 28, 1953 1029-1031
Leon Josephson, October 28, 1953 1032-1033
Mrs. Louise R. Bennan, October 28, 1953 1034-1035
Lement Upham Harris, October 28, 1953 1035-1039
Philip Levy, October 28, 1953 1039-1045
III
INTERLOCKING SUBVERSION IN GOVERNMENT
DEPARTMENTS
WEDNESDAY, OCTOBER 28, 1953
Subcommittee To Investigate the Administration
OF the Internal Security Act and Other Internal
Security Laws of the Committee on the Judiciary,
New York, N. Y.
The subcommittee met, pursuant to notice, at 12 :30 p. m., in room
110, United States Courthouse, Foley Square, New York, N. Y.,
AVilliam E. Jenner (chairman of the subcommittee), presiding.
Present : Senator Jenner.
Also present: Robert Morris, subcommittee counsel; J. G. Sour-
wine, special counsel; Benjamin Mandel, director of research, and
Robert C. McManus, research analyst.
The Chairman. The committee will come to order.
The Senate Internal Security Committee of the United States
Senate is going into its investigation of Communists in the Govern-
ment. We have encountered many of them in our Government.
This morning we have a witness. Colonel Akhmedoff, who is going
to give us further evidence on Soviet espionage in connection with
the infiltration in our Government.
Will you be sworn to testify, Colonel?
Do you swear the testimony given in this hearing will be the
truth, the whole truth, and nothing but the truth, so help you God?
Mr. Akhmedoff. I do.
TESTIMONY OF ISMAIL EGE (ISMAIL GUSSEYNOVICH AKHMEDOFF)
The Chairman. Be seated.
Will you state your full name for our record ?
Mr. Akhmedoff. My full name is Ismail Gusseynovich Akhmedoff.
I-s-m-a-i-1 G-u-s-s-e-y-n-o-v-i-c-h A-k-h-m-e-d-o-f-f.
Mr. Morris. Your "last name is spelled A-k-h-m-e-d-o-f-f?
Mr. Akhmedoff. That is right.
The Chairman. Where do you reside. Colonel ?
Mr. Akhmedoff. I reside in Washington, D. C, 5025 Fifth Street
NW.
The Chairman. What is your business, or profession ? _
Mr. Akhmedoff. I am a writer at this time. I am looking for a job
in some technical corporation as electrical engineer.
The Chairman. Proceed, Mr. Morris, with the questioning of the
witness.
Mr. Morris. Mr. Akhmedoff, where were you born?
Mr. Akhmedoff. I was born 1904 in Urals, that is Orsk.
1001
to-
1002 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Morris. What year?
Mr. Akiimedoff. 1904, I7th of July.
The Chairman. Now, will you tell us where that is, generally
speaking?
Mr. Akhjiedoff. That is Orenburg district. O-r-e-n-b-u-r-g
Xow it is called Chsalvosk. C-h-s-a-1-v-o-s-k.
The Chairman. In Russia ?
]Mr. Akhmedoff. In Russian Urals.
Mr. Morris. Will you tell us what you were doing at the time of
the 1917 revolution?
Mr. Akhmedoff. In the 1917 revolution I was 13 years and I
was attending Russian high school.
In 1919 I joined voluntarily the Young Communist organization.
Mr. JMoRRis. The Young Communist organization in 1919 after the
revolution ?
Mr. Akhmedoff. That is right. I was sent in 1919, in perhaps
August it was, to Orenburg to enter the Institute of Oriental Lan-
guages, which was an affiliate of Moscow Oriental Institute.
I was studying in this institute for 1 year.
Mr. Morris. Will you speak a little louder ?
Mr. Akhmedoff. In 1920 I was sent to Wokhara, W-o-k-h-a-r-a, in
the educational field to prepare teachers of the primary schools on the
Soviet lines to organize propaganda in the educational field.
Mr. Morris. How old were you at that time?
Mr. Akhmedoff. I was 16 years old. That is no wonder, because
during the revolution even boys who were 12 years old were taken
and going to fight for the revolution.
The Chairman. Boys 12 years old were engaged?
Mr. Akhmedoff. Twelve, thirteen, fourteen. It was no wonder.
Mr. Morris. How long were you engaged in that educational work ?
Mr. Akhmedoff. I was engaged in the educational field until 1923.
Then I saw my own education was not enough, so I want myself to
continue my education and some technical qualifications, and I went
to Petrovsk, Caucasus, Kuba.
In 1925, I was sent by the Central Committee of the Young Com-
munist Party to Leningrad to the School of Communication. That
is a signal school.
In 1929 I was graduated from this institute in Leningrad with the
rank of first lieutenant, signal troops.
]\Ir. Morris. In the year 1929, when you were 25 years of age, you
graduated from this military school ; is that right?
Mr. Akhmedoff. That is right, with the rank of first lieutenant.
Mr. Morris. What was the name of the school ?
Mr. Akhmedoff. That was in Russian Leningradskaya Vuennaya
Shkola Svyazi, which means Military School for Signal Communica-
tions.
The Chairman. That school was located in Leningrad?
Mr. Akhmedoff. That was located in Leningrad.
Mr. Morris. Wliat was the next episode in your life?
Mr. Akhmedoff. After being graduated from the military school
for signal communications, I was sent to Caucasus, to Tbilisi,
T-b-i-1-i-s-i — that is the capital of Georgia — as first lieutenant to serve
the radio battalion of the Red army.
INTERLOCKING SUBVERSION IN GOVERNMENT 1003
Mr. Morris. You served in the Red army with the rank of lieu-
tenant ?
Mr. Akhmedoff. That is right.
Mr. Morris. During this next period ?
Mr. Akhmedoff. And after perhaps 3 or 4 months, because of know-
ing Turk's language and a little German, I was appointed to the intelli-
gence section of the headquarters of Caucasian Eed army, where I
served until 1932 in the intelligence section for operations on border
against Turkey and Iran.
In 1932 on my own desire I was sent to Leningrad to enter the mili-
tary electrotechnical college from which I graduated in 1936 with
the rank of military engineer of third rank, which is equal now to the
captain engineer of electricity.
Mr. Morris. Will you tell us the next episode in your life?
Mr. Akhmedoff. After being graduated from the military elec-
tronic college in Leningrad, I was appointed in the fall of 1936 to
Moscow center scientific research institute for communications of the
Eed army, where I worked until 1938 as a research engineer, then chief
of a subsection, then deputy chief for section and finally chief of first
section, which was engaged in construction, testing, and research of
army wireless.
Mr. Morris. Will you explain that a little more fully, please, Mr.
Akhmedoff?
Mr. Akh^viedoff. I will do it. In Moscow, in Sokolniti, there
exists a central research institute for communications of the Red army.
The function of that institute was research, testing, and construction
of army wireless units and other communications devices, telephone,
telegraph, research, and scientific work in the field of cosmic rays.
At that time there existed another institute, also an institute for
the mechanics of the Red army.
In 1937, both institutes were combined into one institute which was
called central research scientific institute for techniques and special
techniques of the Eed army.
My last assignment in that was chief of the first section of that com-
bined institute.
Mr. Morris. What year was that, Colonel ?
Mr. Akhmedoff. It was from 1936 up to 1938.
In 1938 I was sent to the war college of general staff.
Mr. Morris. Will you tell us what the general staff's war college
Avas at that time ?
Mr. Akhmedoff. Well, that war college of the general staff, I am
told, was organized approximately in 1935 or 1934. I don't remem-
ber exactly. That was a college for the preparation of general staff
officers for the general staff work, and central apparatus in Moscow
and in the military districts on high level.
Usually it was required in order to enter this war college of the
general staff to be a graduate from one of the various military colleges
which in Russia are called academies. There were 14 in my time
in the Soviet Union, including Frunze Military Academy. Frunze
Military Academy was a pure militaiy college, and the rest of the
ones were the technical colleges for the air force, for the armored
troops, communications, and so on.
A person who had to give courses in physics in the Red army after
graduation from one of these colleges had to serve in the field or in
1004 INTERLOCKING SUBVERSION IN GOVERNMENT
the central apparatus of the commissariat for defense for 2 years at
least, to apply to enter the war college of the general staff of the
Red army.
I was graduated from this war college in 1940 in full and being
a student of this war college I took part in campaign, in shameful
campaign, I would tell, against Finland in the headquarters of the
Ninth Army, which was commanded by General Chuyko.
Mr. Morris. That was in the year 1940 or 1939 ?
Mr. Akhmedoff. That was in the winter of 1939. The operations
began approximately in December and they ended March 13, 1939.
Mr. Morris. What rank did you have at the time ?
Mr. Akhmedoff. At that time I was military engineer of second
rank, which is equal of major now in the Soviet army, major engineer.
In 1940, in full I was graduated from the above-mentioned war
college for general staff and was appointed to the military intelligence
department of the general staff as chief of the fourth section.
The Chairman. Chief of what ?
Mr. Akhmedoff. Of the fourth section of the military intelligence
department of the general staff.
Mr. Morris. This is in the year 1940 and you graduated from staff
school ?
Mr. Akhmedoff. I was graduated in full in September 1940. After
2 weeks I was appointed to the military intelligence department.
Mr. Morris. Your first assignment was cliief of the fourth section
of the intelligence de])artment of the general staff?
Mr. Akhmedoff. That is right, sir.
Mr. Morris. Now, Mr. Chairman, as a result of staff conferences
with the witness here today, we and he have prepared a chart which
is now over there. I suggest that possibly we finish off this man's
biographical sketch and then we will address ourselves to that chart.
The Chairman. All right, proceed.
Mr. Morris. So you became the head of the first section of the mili-
tary intelligence department of the general staff?
Mr. Akhmedoff. Tliat is right.
Mr. Morris. This is now in September 1940?
Mr. Akhmedoff. That is right.
The Chairman. Will you indicate liere which is the fourtli section?
^ Mr. Akhmedoff. This is fourth section which was the second sec-
tion responsible for the procurement of technical data. It was the
technical armaments of the foreign armies of first-class powers, Ger-
many, England, United States, Japan, Czechoslovakia, and so on.
The Chairman. What was your rank at that time ?
Mr. Akhmedoff. At that time my rank was major of general staff
of the Red army.
The Chairiman. Thank you very nuich. You may proceed. You
may resume the witness stand.
Mr. Morris. Plow long did you occupy this position as chief of this
particular section?
Mr. Akhmedoff. About eight and a half or nine months. At the
end of May 1941 I was sent to Germany posted into the field under
cover of service president of Tass in Berlin with the false name of
Nikolayeff Georiri Petrovich.
Mr. Morris. That was a false name you assumed in undertaking
your assignment?
INTERLOCKING SUBVERSION IN GOVERNMENT 1005
Mr. Akhmedoff. Yes.
Mr. Morris. You say the cover of your assignment was that you
were vice president of Tass ?
Mr. Akhmedoff. That is in Berlin.
Mr. Morris. Actually, your real assignment was what?
Mr. Akhmedoff. My real assignment was organization and expan-
sion of military intelligence in Germany. I could not go with my own
life because I was known in the Soviet pr&ss as Akhmedoff, with my
real name, and it is the practice in Soviet military intelligence when
personnel who are officers are sent abroad they are sent by false names
in order to protect them in their work, their operations.
Mr. Morris. Will you tell us about the nature of your work there
as an officer in the Soviet intelligence acting under the cover of vice
president of Tass ?
Mr. Akhmedoff. Mostly it happened under rather tragic and I
would say tragic-comic circumstances. When I was in Moscow in
general staff, chief of fourth section, approximately in April, I think
it was the I7th of April, we got a cable from Shkvor fourth section,
who was having a very good contact with the high command of the
German Army. It was stated in the cablegram that the Germans are
concentrating their troops on the Soviet frontiers and that German
liigh command and Government order to stop Soviet military orders
in Skoda plant in Czechoslovakia.
Mr. Morris. Can I break in at that point and ask you a little more
detail on some of these points you are giving us right now ?
You say tliis was in the spring of 1941 ?
Mr. Akhmedoff. It was in April 1941.
Mr. Morris. In your capacity as colonel of the fourth section
Mr. Akhmedoff. As chief of the fourth section. I was still major
of general staff.
Mr. Morris. In that capacity you heard that this report had been
submitted to your Soviet superiors about tlie German war prepara-
tions ?
Mr. Akhmedoff. I did not say it. It was reported to me.
Mr. Morris. By whom was it reported ?
Mr. Akhmedoff. By a source whose name was Shkvor.
Mr. Morris. Spell that, please.
Mr. Akhmedoff. S-h-k-v-o-r. He was vice president of Skoda
plant in Czechoslovakia in
Mr. Morris. What did he report ?
Mr. Akhmedoff. This gentleman was not a paid agent. He was
patriotic Czech and the Kussians got him into an intelligence plan on
his patriotic feelings. He was looking for revenge on Germans and
agreed to work for the Russian Government, but Russians forget and
put aside his patriotic feelings, used him in a very good way as agent.
They do it always. This source reported that the Germans are
concentrating their troops on the Soviet frontiers, that the German
high command and Government order to stop the Soviet military
orders on Skoda plants and in the second half of June 1941, the
Germans are going to declare war against the U. S. S. R.
That was one of tlie most important informations got by the RU —
not in 1941, in all years when there exist their military intelligence.
32918— 53— pt. 15 2
1006 INTERLOCKING SUBVERSION IN GOVERNMENT
Because of the report of that information it was sent immediately
to the members of the Politburo, including Stalin.
The same night I was called back to the EU. That means in Eng-
lish military intelligence department.
Mr. Morris. So whenever you use the word RU, you are using it
in that sense, the military intelligence department ?
Mr. Akhmedoff. That is right. And deputy chief for the military
intelligence department. Major General Panfilof showed me this
cablegram with the resolution of Stalin which was written and signed
by Stalin with red ink, and it read :
This information is English provocation, find out who is making this provoca-
tion and punish him.
So I was sent to Germany to find out if that was true or not.
Mr. Morris. In other words, to determine whether or not this re-
port of this agent was an accurate report ?
Mr. Akhmedoff. That is right.
Mr. Morris. It became your official assignment to pursue that?
Mr. Akhmedoff. That is right, besides other assignments. One of
the most important assignments, I came to Germany at the end of
May 1941. Saturday, June 21, 1941, we got another information
that the Germans were going to declare war on Soviet Russia the
next day, that is Sunday, June 22. That was sent immediately to
Moscow headquarters and reported to Dekanozov, who was ambas-
sador of Soviet Russia in Berlin and comic thing, Dekanozov, who
was right hand of Stalin, still did not believe in that information
and we were ordered to forget it and go to a picnic party the next day,
but that picnic did not take place because at 3 in the morning, that
was Sunday morning, Dekanozov was called to the Von Ribbentrop
and delivered note about declaration of war by Germany.
Mr. Morris. How long were you in Berlin altogether ?
Mr. Akhmedoff. Altogether it was about 3 weeks.
Mr. Morris. How did you get out of Germany ?
Mr. Akhmedoff. I was interned by the Germans, because as vice
president of Tass I had no diplomatic passport. My passport was
the usual passport for Government employees.
Tass correspondents do not have diplomatic passports usually.
It was in my time.
Mr. Morris. How long were you interned ? • _
Mr. Akhmedoff. I was taken to a concentration camp in Berlin.
It was about 3 weeks until we were exchanged by the Germans. Dip-
lomats arrested in Germany were taken via Belgrade to the Turkish-
Bulgaria frontier and the Russians came by way of Kuba, Tibilisi to
Germany.
So I came to Turkey. It was perhaps at the end of Julj^ or August
of 1911. In Turkey I got the directive of the chief of Soviet military
intelligence to stay in Turkey and direct military intelligence against
Germany from Turkish territory ; I was neutral and in order to cover
my activities I was given title as press attache of the Soviet Ambas-
sador in Ankara.
Mr. Morris. That was cover?
Mr. Akhmedoff. Of course it was cover.
Mr. Morris. How long did you stay there?
INTERLOCKING SUBVERSION IN GOVERNMENT 1007
Mr. Akhmedoff. I stayed over there until the 3d of June 1942,
when I broke with Soviet Government and the Communist Party.
Mr, Morris. Did you have a wife at that time ?
Mr. Akhmedoff. No. My wife was — I don't know if she was killed
or she died, by natural causes, but I got a telegram in the autumn of
1941, perhaps in October or November, and that telegram was very
short, and it stated that your wife died in a few days, and there was
no explanation how it happened. I was just crazy. The second para-
graph of the same telegram had word that director, which means the
chief of military intelligence, "Hoped that you will fight for your
glorious fatherland in a better way."
So I tried to find out why she died, and I could not find it out in any
way.
Mr. Morris. Where did she die?
Mr. Akhmedoff. She died in Sverdlovsk district in Urals. Per-
haps in the village of Pervonaysk, if I remember it correctly.
The Chairmax. From whom did you receive the telegram ?
Mr. Akhmedoff. From the chief of the military intelligence de-
partment. I knew from her letter that she was evacuated to Urals
when the Germans were advancing to Moscow, and they were forced
to work in potato field and so on just to keep on.
Mr. Morris. Doing forced labor, in other words ?
Mr. Akhmedoff. Yes; that is right.
Mr. Morris. Mr. Chairman, this witness has given us his back-
ground, his history, his experience w4th Soviet military intelligence.
With the limitations of time and place that are inherent in his testi-
mony, he is prepared to give us some information that I think would
be of interest to the committee in pursuing the line of inquiry that you
suggested at the beginning of the session ; namely, that of following
up, determining the nature of Soviet espionage rings and possibly
giving us some clews to their operations.
He has asked permission, and he has complied with our 24-hour
hour rule, to make a short statement. I cannot see any reason why
he should not be allowed to make the statement. He has complied
with the rule, and he has given us the reason for making the statement
and I see no reason why he should not be allowed to make the
statement.
The Chairman. You may proceed with your statement.
Mr. Akhmedoff. I, Ismail Gusseynovich Akhmedoff, ex-lieutenant
colonel of the military intelligence department of the general staff of
the Red army, have the following statement :
On the 3d of June 1942, in Istanbul, Turkey, I broke with the Gov-
ernment of the U. S. S. R. and All-Union Communist Party of
Bolsheviks, renounced my Soviet citizenship, and went to the Turkish
authorities asking for asylum as political refugee.
From this crucial date in my life history, I did my best to denounce
Soviet subversive activities and I did that always on my own initiative.
I had joined voluntarily the All-Union Communist Party of
Bolsheviks in 1921, for, being young, emotional, and unexperienced, I
believed that communism would bring happiness, freedom, equality,
and the same degree of political freedom to the national minorities
of the former Tzarist Empire of Russia.
1008 INTERLOCKING SUBVERSION IN GOVERNMENT
I had joined voluntarily the Ked army in 1925, for I believed that
it was an instrument of peace, or defense, and not of any kind of
aggression.
Then, being little by little admitted into the inner circles of Com-
munist Party, climbing up and up along the thorny roads of Soviet
military hierarchy, I saw the true face of communism, of Soviet dic-
tatorship, and its weapon of aggression— the Eed army. I saw the
tears, the bloodshed, the horrors of the liquidation of uprisings
against the Soviet tyranny in the Middle Asia and Tzars-Caucauses,
collectivization and of forced labor, the purges, the Soviet-Finnish
War, the occupations of Baltic countries and Bessarabia. I was terri-
fied and ashamed for the cruel methods of Soviet government.
This was an indication that I was having spiritual conflict with
myself. Finally, I asked myself the most important question : Was
it worth to fight for communism ? Was communism a right kind of
prescription against the social disease called by many as crisis of
human society?
I am proud to declare here that in the end of 1930's, while still liv-
ing and working in the U. S. S. R., I was able to answer those vital
questions in the positive way and to make up my mind to break with
the Soviets whenever chances would come.
My answers were these:
Communism is not worth to fight for. For the contrary, it was
necessary and worth to fight against communism, to fight by all
nieans if we wish the spiritual values of mankind do not submerge
into the dark seas of evil.
That is because communism is Godless, is unscientific, is outmoded.
Why?
At first, after great deal of thinking, I rejected so-called philosophy
of communism. I cannot accept the materialistic idea that the whole
universe, beginning from the tiny single atom and ending with extra -
galactic nebulae, the wonderful orderliness of the natural phenomena,
the mysteries of life and death are just created by some accident from
meaningless chaos.
I do believe that the whole universe, including ourselves, are
created by God. That our life has its purpose and meaning. I do
believe that our souls are immortal.
Coming to that, the most important conclusion to me, I found my
lost religion, which is Islam, and with it peace of my mind.
As a logical result of this thought I rejected the materialistic inter-
pretation of the history of human activity. Therefore, I could not
accept that the bloody "proletarian revolutions" are the only remedy
of conflicts between the labor and capital.
The whole life is conflict. Nevertheless, there are many ways to
settle those conflicts. The social experiences in the west had proven
that there are more effective ways in settling those conflicts between
the labor and capital.
I have seen and am convinced that the Soviet system does not serve
the interests of the people of the U. S. S. R. The Government of the
U. S. S. R. is not government of people, by people, and for people. It is
not even the dictatorship of proletariat. It is the dictatorship of Com-
munist rulers in the Kremlin which have in their minds the fantastic
and criminal idea to rule the world to suppress freedom and to convert
the free world into a gigantic concentration camp.
INTERLOCKING SUBVERSION IN GOVERNMENT 1009
So, in\yardl3', I have done and finished with communism while I
was still living- in the U. S. S. R. Outwardly, I could not express
myself because of well-known Soviet conditions.
Therefore, there was only one way to escape Soviets and fight them
and tliis one way was to get a chance to be posted to some Soviet foreign
service.
For me this chance came in the form of my appointment to the
Soviet Military Intelligence Department of General Stall. After 9
months' service as chief of the technical intelligence section of the
above-mentioned department, I was posted into the field, to Germany
for intelligence purposes, under the cover as vice president of TASS
in Berlin, and under the cover name of Georgi Petrovich Nikolayeff.
That happened in the end of May 1941.
I could not defect to Germans for the Germany of Hitler was
another form of totalitarian state. Finally, due to the Germano-
Soviet War I was posted in Turkey. From there I was ordered to
organize and carry out intelligence operations against Germany.
Istanbul was my headquarters. The title of press attache of Soviet
Embassy in Turkey was my cover.
As far as there was the war and the western democratic powers
were allies with Soviets, I decided for a while to carry out my duties.
Besides, I had a little hope ; nevertheless, a hope that Soviets would
change their internal and foreign policies under the new circumstances.
My little hopes were ruined very quickly. For my sincere desire to
cooperate with the representatives of allies in our common struggle
against the enemy, I was labeled by Moscow as an "opportunist" and
"Fascist."
When soldiers of the Red army, of the armies of the Western Allies,
were dying on the battlefronts, the official representatives of Krem-
lin were systematically calling among themselves U. S. A. and Eng-
land by unprintable names and threatening that one day, after Ger-
many's collapse, they would do and finish with other "capitalistic"
countries.
Then, contrary to the previous directives of Moscow, I was ordered
])y Vinogradoff, then Soviet Ambassador to Turkey, to carry out
political espionage against Turkey in general, and at least try by all
means to enlist into Soviet service some ]irominent Turkish editors
and members of Turkish Parliament as Falih Rifki Atay, Hyseyin
Cahit Yalchin, Ahmet Emin Ralman, in particular.
Being myself Turk, I rejected categorically his offer, motivating
that espionage against the Turks was none of my business.
As the result of all that, the atmosphere around me was darkened
and in the end of May 1942 I was recalled back to the U. S. S. R. to
give account on my behavior. Instead of going back and be silent
toy of Moscow bosses, I preferred to stay in the free countries and
fight communism. Since that date, for 11 years, I fought communism
by act.
Gentlemen, I came before your subcommittee on my own request
as a voluntary witness. I promise you to tell the whole truth about
Soviet intelligence activities against the free world. I am ready
to testify to it publicly if that would be necessary. In acting this
way I am motivated by my desire to fight communism. That testi-
mony and publicity can cost my life. But there are some moral values
bigger than life itself. So help me God.
1010 INTERLOCKING SUBVERSION IN GOVERNMENT
I have known hundreds of high-ranking officers of the Soviet Army,
scores of members of the Communist Party of Soviet Union. Some
of them are now prominent figures in the U. S. S. R. I know, and
I am sure in that, some of them have better inner feelings, are not
corrupted by Communist psychology, and have a critical attitude
toward Soviet regime.
I am sure that there are Soviet officials in the various Soviet foreign
services scattered all over the world waiting for some chance to break
with Soviets and to get to freedom.
I should like to call publicly upon such persons to find their own
ways to freedom and to join struggle against the communism.
Mr. Chairman, I would just add two words to my statement. After
I broke with the Soviets I was living for 8 years in Turkey. In 1950,
I was granted Turkish citizenship. In connection with that I crossed
down my name as Akhmedoff. Akhmedoff was furnished. I took,
as it is custom in Turkey, the name Ege, in honor of the District Ege
Ege in which I was living all these years since 1950.
Now, my name is Ismail Ege. I have nothing to be afraid from
the Soviet. And soon if somebody is going to discover that I had
such name, I am absolutely open, since I am in the fight on commmiism.
Mr. MoREis. You left Turkey in 1950?
Mr. AhkjViedoff. That is right.
Mr. Morris. Where did you go in 1950 ?
Mr. AHKMEDorr. In 1950 I came to Italy and West Germany and
I was working for the international Envoy Co., which is a branch
of General Electric Co.
Mr. Morris. You stayed in West Germany until 1953; did you not?
Mr. Ahkmedoff. That is right. I came to the United States on
February 29, 1953.
(Witness addressed as Mr. Ege from here on.)
Mr. Morris. I suppose we should call you Mr. Ege from now on.
Mr. Ege, would you tell us what steps you made to communicate
with American intelligence officers after your defection from the
Soviet organization?
Mr. Ege. In order to tell it in sequence, at first I took legal steps
when I still was press attache of Soviet Ambassador in Turkey. I did
pay my respect to American consular officials in Istanbul in the winter
of 1942, perhaps in March or February.
I talked to that gentleman openly, that I am a Soviet officer, I am
going to break with Soviets on ideological grounds.
As far as war was going I hated not to desert war; I was still
official. I told him if it would be all right to enter as private of any-
body in the SU Anny, and to fight Japan and/or Germany, and the
battlefront, I would be glad to aid.
But because of friendship and everybody was thinking that Russia
was sincere, my proposal was not turned down, but I got no answer
and I don't blame the consul general for it because of the situation.
Then in 1945 I addressed, I sent a letter to the ximbassador in Tur-
key, Mr. Wilson, giving him my background and stating that I have
got information which concern the security of the United States. I
got a letter instructing me to Istanbul. I was interviewed in Istanbul
in 1945. I have information which I am going to repeat now here.
Then in 1948, 1 was interviewed in a lengthy way by an FBI repre-
sentative.
INTERLOCKING SUBVERSION IN GOVERNMENT 1011
Mr. Morris. FBI in what year, 1948 ?
Mr. Ege. November 1948, at the time when the President's election
was.
Mr. Morris. You imparted your knowledge of the Soviet intelli-
gence organization to the FBI in 1948 ?
Mr. Ege. That is right.
Mr. Morris. Since then to whom have you imparted this informa-
tion?
Mr. Ege. Since then
Mr. Morris. Have you seen the FBI again ?
Mr. Ege. Several times I have.
Mr. Morris. Since you have come to this country ?
Mr. Ege. That is right.
Mr. Morris. Now, Mr. Ege, one American witness, at least she was
an American agent, and her experience brought her strictly within the
American scope of things, has testified that to her knowledge there
were four espionage rings working in the Government in the United
States. I know you are going to give us great details on the general
nature of the staff, but your testimony here today will be related with
particularity to that aspect of our investigation which indicated that
there may well still be 2 more of these particular 4 rings still in exist-
ence in Washington. That is a possibility the committee has not been
able to determine, whether or not they are still operating.
To your knowledge, and, first, based on your own knowledge and
based on your own estimate of the Soviet intelligence organization,
how many espionage rings were operating in the United States in the
years 1941, 1942, when you defected from the Soviet organization?
Mr. Ege. Can I demonstrate on the chart in order to be more
explicit?
(The chart referred to follows:)
1012
INTERLOCKING SUBVERSION IN GOVERNMENT
CHAKT Of THE INTERMATIOKAI, SOVIET IMIKXICENCE SYSTEM
As of May 1941 •
Central Co:iralttee
Communist Party, USSR
3
Council of People's
Commissars
Cover Organla-
tlons in ForeJgn
Countries
Mavy
Commissariat
for Defense
Intelligence
NKVD
General Staff
T~\
L
Comintern
Foreign onioe
Foreign
Department
Foreign Trade
Counter
Int«lllgencf
Pepartment
TASS
CI
Intelligence
Department
Intourlst
VOKS
Operations
Branch
Information
Branch
Training
Auxiliary
Units
State Bank
Foreign Dept.
Various Inter-
natlDoal Inatl
tutlons
Strategic
Intelligence
Sections
oerraany
Italy
France
England
Sweden
Norway
Spain
Switzer-
land
Rumania
Yugoslav
la
Czecho-
slovtki.
Turkey
Afghan-
istan
Iran
Arabliin
countrl
Bulgaria
Greece
United
States
Far Eas
Canada
Japan
Mexico
South
Ameri
India
ca
z
VS technic-
ally advanced
countries:
Germany
United State
Great Britair
France
Czechoslov-
akia
Switzerland
Sweden
Norway
Japan
Canada
Italy
X
Terror-
istic
acts;
uprls
ings,
kidnap-
ings;
special
duties;
Includ
Ug USA
False
docu-
ments;
pass-
ports;
count-
erfeit-
ing ; nc>
techni-
cal me
ods; In
cZuUog
USA
X.\ d
Direc-
tion of
opera-
tive &
tactic-
al in-
telli-
gence of
military
istricti
front 4'
separatp
armies
Ciphel
Coounissarlat
for Education
Various Scien-
tific Insti-
tutions
Purchasing
Commi s s 1 on s
Legal
Networks
Illegal
Networks
Legend
Contact
^utrorJlnf.te
Mr. IMoRitis. You may.
Mr. Ege. That chart "was composed by me and that is of the Soviet
intelligence system as of ]May 1941. At that time the Soviet had three
channels organizing international espionage against the whole world.
One channel was NKVD, which means the military or at that time
commissariat for the internal affairs.
Tlien commissariat for defense, which is now military, and that is
military for defense, and Navy.
All of these were, of course, subordinate to the council or people's
commissars.
Mr. Morris. Were they subordinate to the central committee of
the Communist Party?
Mr. _Ege. I would not say legally, because legally the Communist
Party is out ; they have connections. But there is one real boss of the
INTERLOCKING SUBVERSION IN GOVERNMENT 1013
Soviet Union, the central committee of Communist Party. From the
leoal point of view we cannot tell that they are subordinated.
But the political party in power, the only party and as far as all
members of council of people's commissars or members of the Politburo
and central committee, it is under the central committee of the
Communist Party.
Mr. Morris. Actually, though, the lines drawn there, if this is a
realistic basis, the lines drawn from the central committee could be
stronger lines than the lines from the council of people's commissariat?
Mr. Ege. That is right. I cannot in reality say it is so. You are
right. I am just pointing out here from
Mr, JMoRRis. The formal relationship is that they are under the
council of people's commissars, but actually they are run by the central
committee of the Communist Party.
]\Ir. Ege. That is right, because all are run by the presidium of the
old Communist Party.
Now, commissariat for defense had its general staff, and general
staff, as any general staff, has its big departments, G-1, G-2, G-3, and
so on. G-1 was for the operation and G-2 , that is intelligence
department.
Historically, that intelligence department of the Ked army went
through the reorganization, changing its name from time to time. It
was known, when the Red army was organized and when there was no
general staff, but the main staff of the Red army, as the registration
flepartment of the Red army.
Then the second bureau of the army general staff. Then fourth
department of the general staff. Then the seventh department of the
general staff, and then just intelligence department and now it is
operating at the main department.
Mr. Morris. When you say now, what do you mean by that state-
ment, as of the time of this chart ?
Mr. Ege. No ; by now, I mean today. But at the time. May 1941,
it was the intelligence department.
I see from Soviet papers that now they call it the main intelligence
department. That is not secret.
Anyway, the name is not important. The importance is the func-
tion. From the day it was created it carried out intelligence operations
against the free world.
During my time that intelligence department consisted of four main
bodies : Operations branch, information branch, training branch, and
auxiliary units.
Under operations branch it included the group of sections which
were conducting agent operations. That is real espionage in foreign
countries.
The information branch is the branch to whom materials and secret
data procured by the operative sections is sent for evaluation, and
dissemination and for further utilization.
The training contains schools, academies, their research center for
communications and auxiliary, sanitary and sewer, and welfare.
Now, operations branch, as of May 1941, consisted of eight sections.
Sections 1, 2, 3, 4, 5, 6, 7, 8. Eight is cipher and that was called oper-
ations because of the importance of cipher.
32918— 53— pt. 15 3
1014 INTERLOCKING SUBVERSION EST GOVERNMENT
But it had nothing to do with the conducting of espionage
operations.
Now, the seventh was directions of operative and tactical intelli-
gence of the military districts front and separate armies. It perhaps
is known, and still I have to stress it, that every military district,
especially border districts, and separate armies and front located on
the frontier area as Transcaucasia, Turkistan, Fares, had their own
intelligence sections to operate along the frontiers of foreign countries.
These sections were directed by the seventh section.
Now, coming to this end, the first section was responsible for organ-
ization of military intelligence against western powers in Europe,
that is in Germany, Italy, France, England, as you see here.
The second was responsible for organization of military espionage
against the Middle East, Turkey, Afghanistan, Iran, Arabia countries,
and Bulgaria and Greece.
The third one was concerned with the United States — that was the
second section which was responsible for the organization of military
and political espionage against the United States — and Canada and
the Far East.
So that was a big and responsible section.
Mr. Morris. In other words, probably for our purposes, that third
is the most important section,
Mr. Ege. That is right.
And the fourth was the section for procurement of technical mate-
rials from advanced countries, such as United States, England, Ger-
many, Czechoslovakia, Switzerland, Norway, Canada, Italy.
Mr. Morris. That was your section ?
Mr. Ege. That was m}^ section.
Mr. Morris. You told us in executive session, did you not, that you
had reports from the Aberdeen Proving Ground during that period,
did you not?
Mr. Ege. I did.
Mr. Morris. Will you tell us about that, just by way of giving us
an example of the kind of intelligence material that was coming
from the United States to you as a member of that section?
Mr. Ege. In 1941 — it was in the winter and by winter I mean Feb-
ruary, March — to my attention came a list of materials from the
United States through Amtorg, which was using the diplomatic chan-
nels as it is the usual way in intelligence in Soviet Russia. And
there were hundreds of pages of technical data, photostats, blue-
prints, and photos of latest American tanks, artillery guns, and elec-
tronic devices, developed and tested at Aberdeen Proving Ground, Md.
Now, as I talk to you, the usual procedure is when agents of the
operative section get such material it is sent to the information
branch in order to evaluate it. The intelligence agent is not com-
petent, himself, to evaluate all technical data. But this material
was considered so important they sent General Golikov, who was
chief of Soviet Military Intelligence at that time. Golikov took it
immediately to report to the chief of general staff of the Eed army,
and 2 or 3, I think 3 times, that material was got this way. It was
procured by the illegal residents of the fourth section who had trans-
ferred in their turn their material to the legal residents of the fourth
section operating under cover of Amtorg in New York.
INTERLOCKING SUBVERSION IN GOVERNMENT 1015
Mr. Morris. You say this particular intelligence material was
procured by the illegal representatives in the United States.
Mr. Ege. That is is right.
Mr. Morris. Who transmitted them to the legal representatives
who were operating under the cover of Amtorg in the United States ?
Mr. Ege. That is right; through cutouts.
Mr. Morris. That, you say, took place in the spring of 1941?
Mr. Ege. No; in winter, in March, February 1941, because in the
spring I was in German business and I was preparing my own cover.
Mr. Morris. That was during the Stalin-Hitler pact, when there was
some kind of alliance between Hitler and Stalin ?
Mr. Ege. That is right.
Mr. Morris. I think the question originally was for you to give
us, based on your own knowledge and experience, the number of
rings that were operated.
Mr. Ege. The fifth section, that was the most dreadful and I would
say inhuman section which was responsible for the organization of
terroristic action, sabotage action, kidnaping, and so on.
The sixth section was responsible for procuring false documents,
passports, counterfeit, and introduction of new technical methods.
The fifth section and sixth section were having their own network
in the United States. That I know, because the chief of the fifth
section was my classmate from the general staff college, major of
General Staff Melnikov. He was deputy chief and the chief was
Colonel Mansurov. Melnikov, having business contact with the fourth
section, was talking about their activity in the United States, not
disclosing, of course, the number of network or the names.
The sixth section was commanded by Bolshakov. At that time he
was colonel. Then he came to the United States as major general
and he was military attache in Washington in 1945 and 1946. And
he had, because he was working sometimes in force before me, he
had his network in Canada and the United States.
Now, in order to come to this number you were asking me about,
I want to tell a few words about the structure of Soviet networks in
foreign countries.
Usually the Soviet intelligence organization has two channels, one
is so-called legal network, which in Soviet intelligence it is under-
stood are networks consisting of Soviet citizens working in some Soviet
foreign office or in some Soviet office working as Tass, Voks, foreign
section of the state bank, Amtorg, foreign offices and so on.
I will tell it afterward, a little later. Persons working here, of
course, have Soviet passports. Sometimes they have false names, some-
times they have real names. It depends on the situation and the back-
ground of the person. They are conducting the espionage under cover
of these organizations and that kind of network is full legal network.
Mr. Morris. It is not legal in our sense of the word, not that it is
permitted by us, but it is more formal.
Mr. Ege. That is right. It is not legal, of course, but in order to
differentiate from illegal network. By illegal network, it is under-
stood network of agents called residents in Soviet terminology who
consist of foreigners, of American citizens, of British citizens, of
Turkish citizens. They don't need cover because they have their
names and passports and they are traveling. They might have a high
position in Government so they don't need cover.
1016 INTERLOCKING SUBVERSION IN GOVERNMENT
Such a network is called illegal network in Soviet Russia intelligence.
As a result, every section has its legal and illegal network, and at
least they will have two, in order if one is out, something happens, ||
still to have another one ready for the work. That is minimum.
Mr. Morris. They have 2 legal and 2 illegal, at least ?
Mr. Ege. That is right. That is minimum. They might have 3
or 4 even. The more the better — for them ; I mean.
Now, having third, fourth, fifth, sixth sections which are conducting
espionage activities against the United States, it is possible and per-
missible to assume that at least there were 8 legal and 8 illegal net-
works on the line of general staff, intelligence department.
They got NKVD which got its foreign department, counterintelli-
gence department. r
Now, NKVD is the right hand of the central committee Communist P
Party and these two bodies — it is paradoxical the people from here
don't like the people from here [indicating] and the people from i
NKVD don't trust the general staff officers as a general rule. Now, |'
as far as NKVD, the right hand of the Communist Party and people
are more trusted, they are given more finances, and they have more
expansion, so, just being conservative, it is possible to think that at
least the number of these legal and illegal networks from the line of
NKTVD is at least about 8 or 9.
Now, I would say at a minimum there are 25 networks, legal and
illegal, if we subdivided the legal and illegal from the standpoint of
Soviet terminology you still have 20 legal organizations.
"\^niat is the more important thing and I have to stress it here, each
illegal network and legal network are separate and individual.
So, for instance, if the fourth section would have its legal network,
it is individual, and on most occasions they are not known to other
people.
Mr. Morris. In fact, you told us in executive session, did you not,
that there was an organization working for the third section, that you
wanted in the fourth section? Do you remember telling us about the
Institute of Pacific Relations in the third section in the executive
session ?
Mr. Ege. I will repeat it here. That question of IPR came to my
attention in the late autumn of 1941. Perhaps you will remember
the year of 1941 was one which was characterized by the danger of
war" between Soviet Russia and Germany. There was no war in the
autnmn of 1940, and the early spring of 1941. War was declared by
the Germans June 22, 1941.
But general staff of the Red army estimated that war was coming
because of the political and military situation.
So the military intelligence department was engaged in the working
out of so-called mobilization plans for the future agent work.
According to the directive of Golekov who got his
Mr. Morris. That is G-o-l-e-k-o-v? ■\'\'Tio was Golekov?
Mr. Ege. He was lieutenant general rank and he was chief of mili-
tary Soviet intelligence department in 1941.
The chiefs of the sections were ordered to work out alternative plans
for the Communist war. We had tAvo plans. One was to^ take into
consideration that Germanv was being engaged in war with Soviet
INTERLOCKTNG SUBVERSION IN GOVERNMENT 1017
Government and perhaps potentially, looking forward, that the
United States would be a temporary ally in that case.
The second alternative was havin<>- in mind that U. S. S. R. would
be engaged in war with the United States, having as an ally Germany.
And we, having to work out for both all these alternative plans,
how to organize quickly if that war is going to happen, how to finance
it, how to organize communications, w^hicli is very important and
difficult.
The chief of my American subsection, Vartanyan Archak Armena-
kovich, rank, brigadier engineer, which is equal to major general —
he Avas in person responsible for the plans against the United States
as technical section.
So he came down to report to me — ^lie was chief of American sub-
section of the fourth section, which was under my command — to report
that it would be a nice idea to include in this plan IPR.
I was a newcomer to the intelligence department. I had no idea
what was IPR.
Mr. Morris. IPR was the Institute of Pacific Relations?
Mr. Ege. I know, because Vartanyan reported to me that IPR was
tlie Institute of Pacific Relations, and he told that Vartanyan, what
I have to tell here, his background. He is outstanding in Russian
intelligence. He was employed by Russian intelligence and in 1938
and 1937 he was working in the United States as chief engineer of
Amtorg and that was his cover, he was legal resident of our military
intelligence department.
So he knew that thing. He told that IPR is a good channel, why
we don't use it.
I told him that as far as we were technical intelligence, perhaps
it is used by the first section. He insists still that w^e have to use it.
It was my duty to report to Golekov that some chiefs of subsections
are advising ns to use this channel of IPR in case of war and for
intelligence work in general.
Golekov listened to me, answered that it is already used by the
tliird section and that is not for fourth, which is technical, and that
is all I know about IPR.
It was not up to me to question my chief. The intelligence business
is business where people less speak the better and when they don't
go into the function of the sections.
Mr. Morris. The sum and substance of the whole thing was that
you were told that the third section was using it and the fourth
section should not therefore use it?
Mr. Ege. That is right.
The Chairman. The committee will recess at this time. Colonel.
We will reconvene at 2 : 30.
(Thereupon, at 1:45 p. m., a recess was taken until 2:30 p. m.,
same day.)
afternogx session
The hearing reconvened at 2 : 30 p. m., upon the expiration of the
recess.
The Chairman. The committee Avill come to order.
Mr. Morris, will you proceed with the questioning of the witness?
1018 INTERLOCKING ^SUBVERSION IN GOVERNMENT '
TESTIMONY OF ISMAIL EGE— Resumed
Mr. Morris. Now, Mr. Ege, will you tell us briefly what you mean
by some of these cover organizations in foreign countries that you
have on your chart ?
Mr. Chairman, before we begin, may I offer for the record, to be
inserted in the record at the time that Mr. Ege first commenced his
testimony about this particular structure, a small version of the chart
that appears on the board.
Senator Jenner. It may go into the record and become a part of
the record.
(The chart appears at p. 1012.)
Mr. Ege. Now, all these operations, sections, called sections for
agents operating — in Russian they are called agenturnye otdelyi — in
order to send intelligence officers, had to use various Soviet organiza-
tions operating in foreign countries.
Suppose some correspondents of Tass, Rogov, for instance
Mr. Morris. Is that Vladimir Rogov ?
Mr. Ege. That is right.
Mr. Morris. That is R-o-g-o-v?
Mr. Ege. R-o-g-o-v.
Mr. Morris. Now, you say he was working in the third section?
Mr. Ege. That is right.
Mr. Morris. What was his rank?
Mr. Ege. Major in my time.
Mr. Morris. When was that ?
Mr. Ege. January or February 1941.
Mr. Morris. He worked in the section next to yours, the third
section ?
Mr. Ege. The third section ; that is right.
Mr. Morris. In other words, he was an intelligence officer in that
section ?
Mr. Ege, That is right. He was sometimes mysteriously disappear-
ing and nobody in the department is asking. Nobody saw him.
Mr. Morris. May I interrupt the testimony of this witness at this
time to bring into perspective here some of the testimony we took
last year about Mr. Rogov? I think it fits in very nicely with the
testimony being given today.
Mr. Chairman, in the course of our hearings on the Institute of
Pacific Relations, we discovered 2 letters in the files, at least 2 letters,
bearing on Vladimir Rogov; first is a letter dated January 17, 1944,
from Edward C. Carter to xilger Hiss in Washington, D. C. This
reads :
My friend, Vladimir Rogov, Tass correspondent enroute Moscow to London,
will be Washington Wednesday, Thursday, and Friday. Knows Chinese lan-
guage. Been China 5 years. Was in Shanghai following Pearl Harbor until last
March. Perhaps you, Hornbeck, would enjoy meeting htm. If so, please com-
nmnicate Tass, Washington.
Signed by Edward C. Carter.
And there was a telegram at the same time sent to Laughlin Currie.
Another document, which appears on page 144 of the hearings,
reads :
Here is copy of a telegram I have just sent to Alger Hiss.
INTERLOCKING SUBVERSION IN GOVERNMENT 1019
This was sent to Rose Yardiimian, paid secretary of the Washington
office of the IPR
When we tried to subpena Rose Yardumian to be a "witness we dis-
covered she had been in Red China at the time of the hearings.
This telegram says :
Here is a copy of the telegram I have just sent to Alger Hiss. Would you
telephone him that I think Hornbeck and he would greatly appreciate a private
talk with Rogov. I also enclose a copy of a telegram I have sent to Currie.
Tou might phone Currie, too, telling him I think he would like to talk with
Rogov.
Then it goes on. There is an answer to that from the secretary,
Rose Yardumian, which reads:
I received your letter of January 17 with copies of the telegrams you sent
Mr. Hiss and Mr. Currie. I called Alger Hiss yesterday morning and he told me
that he had received your wire, but was sure that I would understand that he
could not make the first advance in arranging a private talk with Rogov, He
said that if Larry Todd —
of Tass —
wanted to bring Rogov to Hornbeck's office they would not refuse to see him.
Yardumian says:
I am not sure I understand the machinations of our State Department. Mr.
Currie has arranged to see Rogov at 12 o'clock today. Colonel Faymonville is
returning to Washington from New York this morning and is supposed to get
in touch with our office then. Rogov and Bill have been at the Cosmos Club for
the last 214 hours talking with Lattimore, Remer, and Vincent.
In the record we have a recommendation from Mr. Motylev who was
identified as one of the Soviet officials of the IPR.
Motylev said that he thought Remer would be named to represent them in
New York on the staff before the conference. This could not be confirmed until
Rukharin came back, but he thought this would be worked out. Edward C.
Carter explains it would also be desirable to have a Soviet person on the inter-
national staff in the period between conferences. He suggested someone like
Rogov.
Now, was this the same Rogov that we are talking about here, Mr.
Ege?
Mr. Ege. I don't know about the facts you were reading. I knew
Rogov who was in the Russian Military Intelligence Department.
Now, using Tass as cover for the operations of officers is not un-
usual. It is in the country the usual thing because when somebody
from the General Staff office is going to some foreign country to act
as an agent of the Intelligence Department he cannot go with his
passport where it is written major of General Staff, Rogov and so on.
He had to have some cover, so it was used as cover. It was very
characteristic of Tass in Germany — for instance, the president of
Tass was a person called Tarasov and whose real name is Uden. He
was resident of NKVD in Germany.
Now, in the Tass staff agency in Berlin, there was Kudryavtsev
Sergi.
Mr. MoKRis. You were in the Tass office in Berlin, were you not ?
Mr. Ege. That is right.
Mr. Morris. You were there as an intelligence officer?
Mr. Ege. I was an intelligence officer with Chovpsev, president of
Tass.
1020 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Morris. So now when you are speaking of the makeup of Tass
in Berlin, you are speaking of it on the basis of your own direct expe-
rience in that office ?
Mr. Ege. That is right. I was talking that the president of Tass,
Tarasov, was representative of the NKVD apparatus and I, as second
person after him, as vice president, was representing the Intelligence
Department of the General Staff.
And Kudryavtsev Sergi was correspondent of Tass and for 2 or 3
years working for the fourth section as agent. There was another
representative of Tass who came 1 week before me and who was work-
ing for the fourth section. I don't remember his name.
There was a correspondent of Tass in Berlin, Yehosef Verchovpsev.
I don't know exactly whether he was working for NKVD, but for
Military Intelligence he was not working.
That was the Tass organization in Berlin and the present attache
of the Soviet Ambassador, Levrov, was again representative of
NKVD, individual representative of NKVD.
Now, when I was forced to Turkey to Ankara and Istanbul, Tass
was full of Soviet agents again. Vishnyakov who was president of
Tass in Ankara, was resident of NKVD. Mikhailov, who was cor-
respondent of Tass in Istanbul was major of section of the Intelli-
gence Department of the Red Army.
Mr. Morris. These are all intelligence officers either under the
NKVD or intelligence officers for the General Staff ayIio were opera-
ting under the cover of Tass ?
Mr. Ege. That is right. And Morozov who was also Tass cor-
respondent in Istanbul, was in reality colonel of General Staff and
was working for the second section.
Lakayeva who was correspondent of Tass in Istanbul was working
for Navy Intelligence.
Mr. Morris. How did Rogov fit into that? You said that Rogov
was a Tass man.
Mr. Ege. That is right.
Now, as far as I saw him in the first section, they could appoint him
to China, Far East, or United States, I don't know, because that was
not business of mine, but as far as in Tass, he was having cover of
Tass, that is my assumption, but I don't know exactly.
What I know exactly was that Rogov was intelligence officer in the
Military Department in February and March of 1951.
Mr. Morris. Was Constantine Oumansky also a Tass man?
Mr. Ege. In my time the director of Tass in Soviet Union, in Mos-
cow I mean, Chravin, was director of Tass.
According to my knowledge Chravin was before Oumansky director
of Tass.
Mr. Morris. Was Oumansky also an intelligence officer?
Mr. Ege. I don't know. I know he was Ambassador to the United
States from Soviet Union.
I want to clear one thing. What I am talking, that while Tass as
a whole body is intelligence organization, it is still a news agency, but
the Soviet organizations are using it as a cover.
Sometimes it is quite possible that some correspondent of Tass
is pure correspondent, having nothing with intelligence, but that
might be, in my opinion, a very rare case. As far as I saw in Ger-
INTERLOCKING SUBVERSION IN GOVERNMENT 1021
many and Turkey, everybody was connected with some intelligence
channel.
The Foreign Trade Commissariat has in every foreign country its
representatives who are called Torgpred, which means representative
of Foreign Trade Commissariat and that p)erson is second after am-
bassador in his rank.
Now, that organization under the Torgpred, it is so impersonal,
consisting of mostly engineers, technicians, and so on, especially it
Avas true for Amtorg in the United States. Now, persons in Amtorg
or foreign-trade representatives in other countries were used by the
intelligence department and they were having foreign-trade repre-
sentatives as cover for them.
For instance, Portapovo, who was Torgpred of Soviet Union in
Rome in 1941, was legal resident of the fourth section. "WHien war
was declared by Germany, Portapovo was transferred from Eome
to Ankara, Istanbul, and still he was working for the fourth section.
I mentioned Vartanyan. He was chief engineer of Amtorg in New
York here and having that cover he was working as legal representa-
tive for the fourth section.
When Vartanyan was called back to the Soviet Union his place
was occupied by a person called Korovin, who was chief engineer of
Amtorg after Vartanyan, and he was legal resident of the fourth
section. And Vartanyan used to work with a person called Baranov,
who was engineer and he was naval intelligence officer working for
the fourth section.
The same holds for the Foreign Office. For instance, ambassador,
consular. Everybody in the Soviet Embassy engaged in diplomatic
activity or nondiplomatic activity at the same time he was working
for some intelligence channel as NKVD or General Staff intelligence
or Navy.
In Germany in 1941, just before the break of war, the first consular
of the Soviet in Berlin, Kabolov, was chief resident of NKVD and
factually speaking he was more powerful than Dekanozov, and if
we take Ankara in 1941-42, the first secretary, second secretary,
third secretary of Soviet Embassy were engaged in espionage activity.
The first secretary was working for NKVD. The second secretary
was working for the military intelligence, the third secretary was
working for the military intelligence and consul general of the
Soviet Union in Istanbul, Akimov, was, in fact, assistant resident to
military attache in Ankara, Tokol Lyachterov.
I could demonstrate how all these organizations were used as cover
by tens and tens of names. I am here under oath. I am not exag-
gerating something, or inventing. I can demonstrate everything by
true facts that the tens of tens of persons working in Soviet Embassy
and consulates were working under these covers for Soviet intelligence
agents.
Now, here we have Comintern. That is a separate body. The
Comintern was furnishing all its agents to the intelligence depart-
ment, to NKVD. I don't know about Navy. But Navy was created
somewhere in 1940.
As far as the general staff, I know persons that come from Comin-
tern to work for the intelligence department. It was quite right to
assume that as far as NKVD was more powerful, they were giving
32918 — 53— pt. 15 4
1022 INTERLOCKING SUBVERSION IN GOVERNMENT
representatives. Contact through Comintern was through the Cen-
tral Committee of the Communist Party of the Soviet Union.
The Chairman. You have various international institutions. Will
you give us some elaboration on that?
Mr. Ege. As an example, I was telling here about IPR. I put here
various international institutions. Their work, for instance, Inter-
national Agrarian Institute, and so on.
The General Staff Intelligence Department used international
bodies. Suppose there is war, for instance, between some country and
the Soviet Union; of course, all Soviet Ambassadors and trading
organizations and Tass are closed down, and everybody departs from
the country, but international organizations are still working because
they are not Soviet organizations.
The Soviets might have their affiliates here, sections, so it is a very
convenient way to plant here agents and then to use for intelligence.
The Chairman. You are speaking now of May 1941, but unless they
have changed their method of operation, you have no doubt in your
mind that they are probably using the United Nations in the same
fashion as they have used international agricultural committees, and
so forth.
Mr. Ege. I am sure of it. For instance, the same Kudryavtsev who
was Tass correspondent in Turkey, was transferred in 1941 to Moscow,
and from Moscow he was sent to Canada where he got involved in
the Canadian atomic-spy case. Kudryavtsev was one of the cutouts
between the illegal network and the network of military attache.
After that conduct Kudryavtsev was appointed to the Soviet dele-
gation at the United Nations. That Kudryavtsev was agent for the
fourth section and he worked under me for some time.
Mr. Morris. Mr. Chairman, may I at this time offer for the record
certain excerpts from the security memorandum which we have de-
scribed in our previous hearings? We introduced into the record, I
believe, about two pages during the last series of hearings. The
report was described by now Vice President Nixon as a top-secret se-
curity memorandum. It was circulated among the top officials of
the United States Government, including the President of the United
States, and it is dated November 1945. It is rather an extensive
report, but in conjunction with the testimony of this witness today
and some other witnesses whom we have here, I would like to offer
for the record certain parts of that memorandum, described as it is as
a top-secret security memorandum, as Mr. Nixon has described it. I
would like to put it in the record.
The first page bears out precisely what this witness has been talking
about and I would like to you, Mr. Ege, if you would, to listen and
make observations on the accuracy of the statement.
This memorandum is dated November 1945. It reads :
INTRODUCTION
This memorandnm has heen prepared for the pni-pose of presenting in concise
form the picture of Soviet espionage activity in the United States. It is divided
into three sections: First, Soviet espionage activity between World War I and
World War II; second, espionage activity during World War II; and third,
Soviet espionage activity as it exists in the United States today.
Throughout the entire period under consideration Soviet espionage in the
United States has depended upon the Communist organization in the United
States for assistance. This has been particularly true during World War II.
INTERLOCKING SUBVERSION IN GOVERNMENT 1023
It will be remembered that the governing body of the Soviet Union is the
Presidium of the Supreme Soviet, which meets at only certain intervals. During
the interim periods the Council of Peoples Commissars is the actual controlling
body. The membership of this Council as well as of the Presidium is composed
of members of the All Union Ccmnmnist Party of Bolsheviks. Because of this
interrelationship between the actual Government of the Soviet Union and All
Union Communist Party of Bolsheviks, it is not surprising that all espionage
activities performed for the Soviet Union are closely related to Communist
activities abroad.
As will be seen, however, individuals other than high oflScials of the Com-
munist Party in the United States have been encouraged to withdraw from
strictly Communist Party activities when engaged full time on Soviet espionage.
The Soviet Union has had two principal intelligence organizations actively
engaged in large-scale espionage activities in foreign countries and particularly
in the United States. These are the NKVD (Peoples Commissariat of Internal
Affairs) and the Soviet military intelligence. Information obtained by these
groups, as well as the other Soviet organizations, whose activities are related
in intelligence spheres, are coordinated in Moscow and there disseminated to
the interested divisions of the Soviet Government.
The NKVD, or Peoples Commissariat of Internal Affairs, was established
by a decree of the Council of Peoples Commissars July 11, 1934, and contained the
Department of States Security, which prior to that time had been known as the
OGPU (Obeyedinenoye Gossudarstuennoye Politicheskoye Upravlyeniye) of
All Union Department of Political Administration. The OGPU was created in
1922 to succeed the CHEKA (VSYA-Rossiskaya Chrezviychainoya Komissia
Po-Borbos Kentre Revolulisya) or the Extraordinary Commission To Combat
Counterrevolution, Speculation, and Sabotage which was organized in December
of 1917. Insofar as is known the CHEKA was primarily responsible for intelli-
gence matters within the U. S. S. R., but its successor, the OGPU, as will be seen,
established a foreign branch and the NKVD continued to operate in countries
outside the Soviet Union.
Since June 1941, following the invasion of the Soviet Union by the Nazis,
the Department of States Security of the NKVD has frequently been referred
toasGUGBEZ (Gosudarstvinaia Ucieijdenaia Gosudaraetvinai Bezapustnovisti).
The Soviet military intelligence organization which was established in 1921
was originally termed "the fourth department of the Red army." However,
the fourth department was reorganized into the intelligence department of the
general staff and within the past 5 years into the intelligence department of
the Red army.
I submit there is a great resemblance between that description of
the Soviet military intelligence as it appeared in this 1945 memo-
randum and as the witness gave it today.
Did you hear my reading of that, Mr. Ege?
Mr. Ege. I did, and I think that is precisely correct except a few
minor things which are not important.
For instance, the name of the military intelligence department,
it was at first registration department, as I was talking, then it was
second bureau, then fourth department, and when Bezine was in
Persia and Uritsky came as chief of that military intelligence de-
partment, it was called seventh department of general staff, and dur-
ing Proskurov, after Uritsky was purged, it was called intelligence
department.
During the Golikov period it was called the intelligence depart-
ment of the general staff of the Red army.
Mr. Morris. May these 2 pages, pages 1 and certain sections of
page 2, as I had designated here, go into the record at this time?
The Chairman. They may go into the record and become a part
of the record.
(The material referred to is as follows:)
1024 INTERLOCKING SUBVERSION IN GOVERNMENT
Introduction
This memorandum has been prepared for the purpose of presenting in concise
form the picture of Soviet espionage activity in the United States. It is divided
into three sections : First, Soviet espionage activity between World War I and
World War II; second, espionage activity during World War II; and, third,
Soviet espionage activity as it exists in the United States today.
Throughout the entire period under consideration Soviet espionage in the
United States has depended upon the Communist organization in the United
States for assistance. This has been particularly true during World War II.
It will be remembered that the governing body of the Soviet Union is the
Presidium of the Supreme Soviet, which meets at only certain intervals. During
the interim periods the Council of Peoples Commissars is the actual controlling
body. The membership of this Council as well as of the Presidium is composed
of members of the All Union Communist Party of Bolsheviks. Because of this
interrelationship between the actual Government of the Soviet Union and All
Union Communist Party of Bolsheviks, it is not surprising that all espionage
activities performed for the Soviet Union are closely related to Communist
activities abroad.
As will be seen, however, individuals other than hish officials of the Com-
munist Party in the United States have been encouraged to withdraw from
strictly Communist Party activities Mhen engaged full time on Soviet espionage.
The Soviet Union has had two principal intelligence organizations actively
engaged in large-scale espionage activities in foreign countries and particularly
in the United States. These are the NKVD (Peoples Commissariat of Internal
Affairs) and the Soviet military intelligence. Information obtained by these
groups as well as the other Soviet organizations, whose activities are related
in intelligence spheres, are coordinated in Moscow and there disseminated to the
interested divisions of the Soviet Government.
The NKVD, or Peoples Commissariat of Internal Affairs, was established by a
decree of the Council of Peoples Commissars July 11, 1034, and contained the
Department of States Security, which prior to that time had been known as the
OGPU (Obeyedinenoye Gossudarstuennoye Politicheskoye Upravlyeniye) of All
Union Department of Political Administration. The OGPU was created in 1922
to succeed the CHEKA (VSYA-Rossiskaya Chrezviychainoya Komissia Po-Borbos
Kentre Revolulisya) or the Extradorinary Commission to Combat Counterrevo-
lution, Speculation, and Sabotage which was organized in December of 1917.
Insofar as is known the CHEKA was primarily responsible for intelligence mat-
ters within the U. S. S. R., but its successor, the OGPU, as will be seen,
established a foreign branch and the NKVD continued to operate in countries
outside the Soviet Union.
Since June 1941 following the invasion of the Soviet Union by the Nazis, the
Department of States Security of the NKVD has frequently been referred to as
GUGBEZ (Gosudarstvinaia Ucirijdenaia Gosudaraetvinai Bezapustnovisti).
The Soviet military intelligence organization, which was established in 1921,
was originally termed "the fourth department of the Red army." However, the
fourth department was reorganized into the intelligence department of the general
staff and within the past 5 years into the intelligence department of the Red
army.
CANADIAN ASPECTS OF SOVIET ESPIONAGE IN THE UNITED STATES
As will be noted in this memorandum, there has been a considerable inter-
exchange of Soviet espionage agents between Canada and the United States.
Through the efforts of Canadian Communists, Canadian passports and other
Canadian identification papers have been obtained for use by Soviet espionage
agents operating in the United States and for others temporarily resident in the
United States who were destined for Soviet espionage missions elsewhere in the
world. It will also be noted that information requested by the Soviets of their
espionage agents in Canada related to matters affecting the security of the
United States. In this latter regard, it has been pointed out that prior to World
War II Soviet agents traveling in Europe and elsewhere on United States and
Canadian passports were subject to little suspicion by reason of holding such
passports because of the heterogenous nationality groups existing in both the
United States and Canada and further because neither the United States nor
Canada had recognized espionage systems abroad.
INTERLOCKING SUBVERSION IN GOVERNMENT 1025
SCOPE OF THIS SURVEY
Investigation by this Bureau of the activities of the Communist Party in the
United iStates has shown that the activities of the Soviets are not limited to
espionage but also include the supervision of and dissemination of propaganda
as well as the actual supervision in many instances of the organizational activi-
ties of the Communist Party in the United States.
This memorandum does not include a discussion of propaganda media of the
Soviets in the United States nor does it deal with strictly Communist Party
organizational activities. It has been confined to a survey of the espionage
organizations of the Soviets in this country.
Many of the individuals named in this memorandum have at various times
engaged in strictly proj^aganda or strictly party organizational activity. How-
ever, those phases of their conduct have not been treated herein.
SOVIET AGENTS ENTERING THE UNITED STATES AS REFUGEES
In London, England, at the outbreak of World War II, there was an organi-
zation known as the Far Eastern Fur Trading Co. operated by Uscher Zloczower,
an Austrian, and Rubin Blucksmann, also an Austrian. When the war com-
menced, Blucksmann was the only officer of the firm in London and he was
ordered interned. After his internment, an examination of the books and records
of the Far Eastern Fur Trading Co. was in correspondence with Frank Kleges,
who operated a firm known as the Anonymous Society for the Importation of
Dried Beans in Paris, France. Other items found prompted the British author-
ities to interview Blucksmann, and they determined through him that the Far
Eastern Fur Trading Co. was one of the cover firms similar to Kleges' firm in
Paris, which were associated with the firm of Wostwag in Berlin, which latter
firm was the principal business cover for Soviet military espionage in Europe.
SOVIET ESPIONAGE ACTIVITIES IN THE UNITED STATES DURING WORLD WAR II
During the period preceding the entry of the United States into World War II,
the Soviets were known to have utilized the offices of Amtorg as a base of
espionage operations in the United States. Results of the investigation, as set
forth in the preceding section of the memorandum, indicate that they had also
used other Soviet agencies in the United States, such as Intourist and possibly
the diplomatic and consular offices.
During the participation of the United States in World War II as an ally of
the Soviet Union, it will be seen that the Soviets broadened their base of espio-
nage operations against the United States, utilizing embassy personnel as heads
of various intelligence organizations and also making use of the purchasing com-
mission of the U. S. S. R. in the United States, more popularly known as the
Soviet government purchasing commission, for increased military and industrial
espionage activity.
Viktor Andreevich Kravchenko, former inspector for the Soviet government
purchasing commission who broke with the Soviets in April 1944, advised an
agent of this Bureau that each employee of the Soviet government purchasing
commission is instructed to submit upon his return to Moscow a complete report
of everything he saw and heard in the United States. He cited as an example
the case of Semen Vassilenko, an employee of the purchasing commission who
flew from Washington to Moscow in February 1944 with six big pouches of
material regarding new and secret developments in war industry iu the United
States. Kravchenko stated that he knew Vassilenko was carrying secret material
because he had known the latter for 15 years and had helped him load his
pouches in the purchasing commission offices. Kravchenko reported that accord-
ing to information subsequently received by the purchasing commission Vassilenko
submitted such a complete and interesting report that he had been appointed to
the Supreme Council for the Ukrainian U. S. S. R.
Mr. Morris. Now, did you know an agent named Adams ?
Mr. Ege. I did.
Mr. Morris. Who was he?
Mr. Ege. Adams was illegal agent, or illegal resident, correctly
speaking, of the fourth section.
I want to give his background.
Mr. Morris. He was in the fourth section, your section?
1026 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Ege. Tliat is right. He came under this organization, illegal
network. He was head of one network, having his contact with
legal network through cutout.
The Chairman. What do you mean by legal network through
cutouts ? Will you explain that word, "cutout" ?
Mr. Ege. I mean by legal network the network that consists of
Soviet agents who have Soviet passports. The persons who are
M'orking under some cover as Tass or Amtorg or foreign offices as
consul and so on. Usually they have their own network of 4, 5, 6, or 2
persons, 1 is head of the network and he is called resident. The other
ones are called agents, Soviet agent in Soviet military intelligence it
is called legal residency.
Under illegal it means network consisting of foreign agents, United
States citizens, British, or Turks. They have no cover, no Soviet
organization.
Still somebody has to contact these two bodies because sometimes
these networks mostly don't have a direct contact with Moscow
headquarters.
So, the illegal resident is given Tass for conducting his operations
and for directing the job of the illegal agents, to contact them, and
the person who is going to contact the legal resident is called cutout.
That is courier for communications.
Now, Adams was head of the illegal network of the United States.
Mr. Morris. For the fourth section ?
Mr. Ege. For the fourth section. Before that, perhaps, he was
working for another section because this chart is as of May 1941, and
it is up to the organization of military intelligence department in
1940.
Before the number and character of sections were other ones that
was reorganized according to the decree of general staff chief and
chief, intelligence department.
Now, with Adams it was a long-standing practice, according to his
file; Adams was born in some Scandinavian country, Sweden or
Norway. He was all Bolshevik, working for the Comintern. He was
a friend of Lenin and he was appointed in the early twenties director
of the first Soviet auto plant in Moscow. He was engineer.
Mr. Morris. Would that be under Amtorg? Would that be a
subdivision of Amtorg?
Mr. Ege. No ; it would not be because the auto plant was in Moscow.
It had nothing to do with Amtorg.
Mr. Morris. You say he was in the United States, though?
The Chairman. No, this is back in 1920.
Mr. Ege. I am talking about his background in Soviet Russia.
Now, in the late twenties, according to his file, he was sent to the
United States as Soviet agent working for Amtorg to purchase auto
parts and machine tools for auto plants.
According to his file he came several times legally in the name of
Soviet foreign-trade organization, as Amtorg representative, and
at that time he was legal agent of the military intelligence because he
was Soviet citizen.
Now, somewhere in the late thirties, according to his file, he was
sent illegally to the United States, according to Maria Polykova, who
was chief of the European section, could qualify for military intelli-
gence department, he was sent to the United States, I mean Adams,
LNTERLOCKING SUBVERSION IN GOVERNMENT 1027
through Canada by a false passport and when I was chief of the
fourth section Adams was operating in the United States, having a
contact with AMTORG foreign chief engineer Korovin, and pro-
curing necessary data on various technical devices.
The interesting thing is, which would be a very good lesson, it was
the decision of the chief of intelligence department, General Golikov,
to call back Adams from the United States.
The reason was Adams was of long-standing practice, and every-
body who was working under Berzine and Uritsky was, and Golikov
had in his mind to call him back to send him to some "safe place" in
Soviet Russia.
Adams being in contact, it was suggested it would be better for him
to go back to Soviet Russia. Adams perhaps was more person. He
refused diplomatic, he did not come.
When I was in 1941 in Russian intelligence department, until I
departed for Germany, Adams was working for the fourth section.
Mr. Morris. Now, do you know his first name ? Do you recall from
your own experience Adams' first name ?
Mr. Ege. I don't recollect exactly.
Mr. Morris. Mr. Chairman, may I at this point introduce another
section of that security memorandum described as it has been
described ?
The Chairman. Proceed.
Mr. Morris. This bears on an individual who was under the sur-
veillance of the security authorities at the time and Arthur Alexan-
drovitch Adams. I offer here two-thirds of one page which I would
like to go into the record at this point.
The Chairman. It may go in the record, and it will become a part
of the record.
Mr. Mandel (reading) :
Arthur Alexandrovich Adams entered the United States at Buffalo, N. Y.,
May 17, 1938, on a fraudulent Canadian birth certificate obtained through the
services of M. S. Milestone, of Toronto, Canada, who has been identified by the
RCMP as a secret member of the Communist Party of Canada. Adams had
previously been in the United States prior to January 1921, when he left volun-
tarily from the port of New York for the Soviet Union in the party headed by
Ludwig Martens. He returned at various times during the twenties and early
thirties as a representative of Amtorg, according to the records of the immi-
gration and naturalization service in New York.
Upon his arrival in the United States in 1938, he established a business
known as the Technological Laboratories, with one Jacob Broches Aronoff, a
New York attorney of Russian birth. Adams later used the offices of the Elec-
tronics Corp. of America and the offices of Keynote Recordings, both in New
York City, as covers for his activity.
According to investigation by officers of the Manhattan engineer district,
Clarence Hiskey, an employee on the atomic-bomb project at the University of
Chicago, received notice on April 27, 1944, that he was to be called to active duty
as an officer in the Army of the United States. The following day Arthur Adams
visited Hiskey in Chicago. Immediately after this conference Hiskey flew to
Cleveland, Ohio, where he made a contact with one
Mr. Morris. The reason that name has been exed out, it is the name
of an American citizen whom we have not given an opportunity to
deny the truth or falsity of the statement.
The Chairman. That is the policy of the committee. We have no
names published unless they have an opportunity to come into private
executive session to explain their position.
1028 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Mandel (reading) :
who was persuaded by Hiskey to take over the latter's duties in the University
of Chicago Laboratory. X had secured employment on the atomic-bomb project
in Chicago.
Adams is known to be a contact of Pavel Mikhailov, acting Soviet consul
general in New York City, who has been identified heretofore to an agent of this
Bureau by Igor Guzenko as the head of an important group of Red army intel-
ligence espionage agents. For example, on the night of October 25, 1944, Adams
was seen by Bureau agents to leave the residence of Jacob Broaches Arnonoffi
carrying an extremely large and heavy case. Mikhailov drove an automobile up
to the curb, Adams carefully put the case into the trunk compartment and drove
off with Mikhailov.
Mr. Morris. Do you know Mr. Mikhailov ?
Mr. Ege. Yes ; his real name is Mel Shinikov. He was, prior to his
admission to the United States, chief of European section of the fourth
section, and rank was engineer of second rank, which is equal to major.
Mr. Morris. He was an intelligence officer.
Mr. Ege. He was in the intelligence department and he was ap-
pointed before me in the department after being graduated from the
Military Academy for the Air Force in Moscow.
Mr. Morris. Now, Mr. Chairman, I would like to point out for the
record the strong similarity between the Adams described by this
witness and the Adams described by that, the visits to this country
and the organizations they were connected with almost coincide
completely.
You gave this testimony to the committee before you knew about
this particular memorandum ; did you not ?
Mr. Ege. I did. I heard this memorandum several days before.
Mr. Morris. You said you heard this memorandum before ?
Mr. Ege. I meant before my testimony here.
Mr. Morris. When did you give your testimony, in 1945 ?
Mr. Ege. In 1945. In 1945 I had no idea.
Mr. Morris. You also told this committee some weeks ago your
story as you gave it today ?
Mr. Ege. That is right.
Mr. Morris. Whom did you tell in 1945 about Adams ?
Mr. Ege. In 1945 I told to some some person called Mr. Curtis, and
he recommended himself from some security agency of the United
States Government, which was, I don't know i nobody told me about it.
I gave him Adams' description and what he was doing, was Soviet
intelligence. It was in July 1945.
Mr. Morris. Now, how frequently did you meet Adams? Did he
work directly with you, or did you just know he worked in the section
with you?
Mr. Ege. I could not meet Adams. Adams was in the United
States. I was in Moscow, so person to person I never met Adams.
I met his wife in Moscow. She was giving me my English lessons.
She was staying in Moscow while Adams was working in the United
States. She was one of my best English teachers.
Mr. Morris. Mr. Chairman, we have mentioned in this thing Clar-
ence Hiskey. Pursuant to policy, we have called Mr. Hiskey in ex-
ecutive session and given him an opportunity to deny the statement
appearing in this memorandum. I wonder Mr. Ege, if you will step
down from the chair, please.
(Witness temporarily excused.)
INTERLOCKING SUBVERSION EST GOVERNMENT 1029
Mr. Morris. Mr. Clarence Hiskey, come forward, please.
The Chairman. Do you swear that the testimony given in this
hearing will be the truth, the whole truth, and nothing but the truth,
so help you God ?
Mr. HiSKEY. I do.
The Chairman. Mr. Hiskey has made a request that the lights be
turned off while he is testifying.
TESTIMONY OF CLARENCE F. HISKEY, BROOKLYN, N. Y., ACCOM-
PANIED BY HIS COUNSEL, ALBERT L. COLLOMS
The Chairman. State your full name to the committee.
Mr. Hiskey. Clarence Francis Hiskey.
Mr. Morris. Wliere do you reside ?
Mr. Hiskey. Grace Courts, Brooklyn.
Mr. Morris. What is your business or profession ?
Mr. Hiskey. I am a chemist.
Mr. Morris. Let the record show that Mr. Hiskey is before the
committee with his attorney, and I believe we have his attorney's
name and address in the executive session.
The Chairman. Proceed with questions.
Mr. Morris. You appeared approximately a year ago before this
committee, did you not ?
Mr. Hiskey. That is right.
Mr. Morris. At the time you were professor of Brooklyn Poly-
technical Institute?
Mr. Hiskey. Yes.
Mr. Morris. You were called before this committee at that time in
connection with an investigation that this committee was making in
subversion in education?
Mr. Hiskey. Yes ; I was.
The Chairman. Please do not take photographs of the witness
while he is trying to testify.
Mr. Morris. Mr. Hiskey, from what university have you graduated ?
Mr. Hiskey. University of Wisconsin.
Mr. Morris. In what year?
Mr. Hiskey. 1939.
Mr. Morris. Will you tell us your employment very briefly from
1939 through the war?
Mr. Hiskey. I taught at the University of Tennessee. I worked
for the Tennessee Valley Authority. I worked for Columbia Uni-
versity, and for the University of Chicago.
Mr. Morris. Now, when did you work for the University of Chicago ?
Mr. Hiskey. From about September of 1943 to April — you supplied
me the date— April 27, 1944.
Mr. Morris. What was the nature of your work at the University
of Chicago?
Mr. Hiskey. Chemical research work of a classified sort.
Mr. Morris. Now, did you do any work on the atomic bomb project ?
(The witness consults with his attorney.)
Mr. Hiskey. I prefer not to answer that.
Mr. Morris. Why is that?
32918— 53— pt. 1.5 5
1030 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. HiSKET. It is a matter of record what the University of Chi-
cago was working on and it would be best to leave it.
The Chairman. I think you might answer it. There is nothing
confidential in what kind of work you were doing. Were you work-
ing for the atomic energy project at the University of Chicago?
(The witness consults with his attorney.)
Mr. HiSKEY. I worked in the metallurgical labs at the University
of Chicago.
Mr. Morris. In connection with the atomic energy project; is that
correct ?
We don't want any details of what you did.
Mr. HisKEY. I worked on the metallurgical project.
Mr, Morris. Which was part of the atomic bomb program?
Mr. HiSKEY. Yes.
Mr. Morris. That was also known as the Manhattan engineering
project?
Mr. HiSKEY. Part of it.
Mr. Morris. Now. did you receive notice on April 27, 1944. that you
were to be called to active duty as an officer in the Army of the United
States?
INIr. HiSKEY. On or about that time. It seems to me I was ordered
up on that date, yes, but I was notified a month or two in advance.
Mr. Morris. Now, the following day, April 28, did Arthur Adams
visit you in Chicago?
Mr. HiSKEY. I refuse to answer that question on the grounds of the
fifth amendment.
The Chairman. I did not hear the answer.
Mr. HiSKEY. I refuse to answer that question on the grounds of the
fifth amendment.
Mr. Morris. Did you after this conference with Arthur Adams fly
to Cleveland, Ohio, where you made contact with a certain person?
The Chairman. Let the record show that the witness before re-
sponding confers with his counsel.
(Witness consults with his attorney.)
Mr. HiSKEY. I refuse to answer that question on the grounds it
may tend to incriminate me.
Mr. Morris. Did j^ou persuade somebody he should take your place
in the University of Chicago lab ?
Mr. HiSKEY. I refuse to answer that question on the ground of the
fifth amendment.
Mr. Morris. To your knowledge, did this person secure employ-
ment in the University of Chicago lab ?
(Witness consults with his attorney.)
Mr. HiSKEY. It is getting difficult now. I don't know what we are
talking about.
Mr. Morris. Mr. Chairman, I admit the last question was vague
because we don't want to mention this man's name until we reach
him. So, I will discontinue the question.
Then you went into the Army ?
Mr. HisKEY. I did.
Mr. Morris. What did you do in the Army ?
Mr. HiSKEY. I went in the Chemical Warfare Service and I first
was assigned to duty in the Northwest Territory in Canada for a
ESTTERLOCKESTG SUBVERSION IN GOVERNMENT 1031
short wliile and then was transferred to Hawaii, where I was a captain
in the 43d Chemical Lab Company.
Mr. Morris. During this period when you were in northwest Can-
ada and when you were in Hawaii, did you have access to classified
ijiformation?
Mr. HiSKEY. In the Northwest Territory ?
Mr. Morris. Didn't you mention the Northwest Territory in Can-
ada?
Mr. HiSKEY. Yes.
Mr. Morris. During that tour of duty and the tour of duty in
Hawaii in connection with chemical research, did you have access
to classified material ?
Mr. HiSKEY. I wrote the classified material that I had access to.
I made the discoveries and I published them,
Mr. Morris. They were all your own discoveries?
Mr. Hiskey. That is correct.
Mr. Morris. Mr. Hiskey, are you presently a Communist?
Mr. Hiskey. I refuse to answer that question on the ground of the
fifth amendment.
Mr. Morris. Were you a member of the Communist Party in April
27, 1944?
Mr. Hiskey. I refuse to answer that question on the ground of the
first and fifth amendments.
The Chairman. We do not recognize your right to refuse to answer
under the first amendment, but we do recognize the right under the
fifth amendment. That you do not have to bear witness against
yourself.
Mr. Morris. I have no more questions of this witness, Mr. Chair-
man.
The Chairman. The witness will be excused.
(Witness excused,)
Mr. Morris. Mr. Chairman, in connection with this there are some
other witnesses here in the room. We asked them to come here at 2 :30.
It is now 3 :30. Rather than keep them waiting, I suggest we inter-
rupt the chronological sequence of this narrative witness and put
them on the stand.
The Chairman. It will be satisfactory.
Could you come back tomorrow and testify ?
Mr. Ege. Yes.
The Chairman. For the convenience of the people we have sub-
penaed here this afternoon, we will ask you to stand by at this time
until tomorrow at 10 o'clock when we will reconvene.
We will proceed to call the other witnesses.
Mr. Ege. Thank you.
Mr. Morris. Mr. Leon Josephson. Is Mr. Josephson here?
Mr. Neuburger (attorney). As I advised you this morning my
client objects to the lights.
The Chairman. Mr. Josephson objects to the lights being on during
the testimony and pictures during the testimony. You may take them
before or after.
Do you swear the testimony given in this hearing will be the truth,
the whole truth, and nothing but the truth, so help you God?
Mr. Josephson. I do.
The Chairman. Let the record show that Mr. Josephson is before
the committee with his attorney.
1032 INTERLOCKING SUBVERSION IN GOVERNMENT
TESTIMONY OF LEON JOSEPHSON, NEW YORK CITY, N. Y., ACCOM-
PANIED BY HIS COUNSEL, SAMUEL A. NEUBURGER
The Chairman. State your full name.
Mr. JosEPHSON. Leon Josephson.
The Chairman. Where do you reside?
Mr. Josephson. 160 West 16th Street.
Mr. Morris. "\^'liat is your business or profession ?
Mr. Josephson. At the present time I am working with my brother
in his restaurant.
Mr. Morris. Who is your brother ?
Mr. Josephson. My brother in Warren Josephson.
Mr. Morris. I have here a short excerpt from the same security
memorandum I would like to introduce in the record at this time.
May we use the same procedure of having Mr. Mandel read it into
the record?
The Chairman. Read it in the record and it will become a part of
the record.
Mr. ]VLa.ndel. This is a memorandum dealing with Philip M. Levy :
Physical surveillances and confidential sources have identified as a contact
of Victoria Stone. Philip M. Levy, of South Orange, N. J. According to the
records of the Department of State. Levy had provided the business cover for
Leon Josephson. a former New Jersey lavpyer, who now operates Cafe Society
Uptown and Cafe Society Downtown in New York City, when Josephson traveled
to Copenhagen, Denmark, with one George Mink in 1935. Both Josephson and
Mink were arrested by the Danish police and charged with espionage on behalf
of the Soviets. Josephson was released very shortly after his arrest, but Mink
was held for many months and finally deported to the Soviet Union.
Mr. Morris. Mr. Josephson, have you been a former New Jersev
lawyer ?
Mr. Josephson. Yes.
Mr. Morris. You did practice before the New Jersey bar?
Mr. Josephson. Yes.
Mr. Morris. Did you once operate Cafe Society Uptown?
Mr. Josephson. Yes — no, I didn't. My brotlier did. I worked
there, but I had no official interest.
Mr. Morris. You worked, but you had no interest? The same for
Cafe Society Downtown?
Mr. Josephson, That is right.
Mr. Morris. Have you traveled to Copenhagen, Denmark ?
Mr. Josephson. I decline to answer on the basis of the fifth amend-
ment, that no witness is required to give testimony against himself.
Mr. Morris. Do you know a man named George Mink?
Mr. Josephson. I decline to answer for the same reason.
Mr. Morris. Mr. Chairman, for the purpose of the record, I would
like to point out that George Mink has been identified as a Soviet
agent.
The Chairman. All right, proceed.
Mr. Morris. Did you travel to Copenhagen, Denmark, with George
Mink in 1935?
Mr. Josephson. I decline to answer on the basis of the fifth
amendment.
Mr. Morris. Were you arrested by the Danish police at any time?
Mr. Josephson. I decline to answer on the basis of the fifth
amendment.
J
INTERLOCKING SUBVERSION EST GOVERNMENT 1033
Mr. Morris. Were you and Mink arrested together by the Danish
police and charged with espionage on behalf of the Soviets ?
Mr. JosEPHSON. I decline to answer on the basis of the fifth
amendment.
Mr. Morris. Were you released shortly after your arrest?
Mr. JosEPHSON. I decline to answer on the same ground.
Mr. Morris. To your knowledge was Mink held for many months
and finally deported to the Soviet Union?
Mr. JosEPHSON. I decline to answer on the basis of the fifth
amendment.
Mr. Morris. Were you in 1935 a member of the Communist Party?
Mr. JosEPHSON. I decline to answer on the same basis.
Mr. Morris. Are you now a member of the Communist Party ?
Mr. JosEPHSON. I decline to answer on the basis of the fifth
amendment.
Mr. Morris. Do you know a man named Philip M. Levy, of South
Orange, N. J. ?
Mr. JosEPHSON. I decline to answer on the basis of the fifth
amendment.
Mr. Morris. Do you know a person named Victoria Stone?
Mr. JosEPHSON. I decline to answer on the same ground.
Mr. Morris. Do you know Arthur Adams ?
Mr. JosEPHSON. I decline to answer on the basis of the fifth
amendment.
Mr. JNIoRRis. Did you hear the testimony of Mr. Ege here today ?
Mr. JosEPHSON. Who?
Mr. Morris. Mr. Ege, the witness who has been testifying, the for-
mer Soviet colonel?
Mr. JosEPHSOx. Part of it.
Mr. Morris. Did you hear him testify about a certain agent named
Adams ?
Mr. JosEPHsoN. Yes.
Mr. Morris. Did you know a man answering that description in
Amtorg? Did you have any dealings with him ?
Mr. JosEPHSON. I decline to answer on the basis of the fifth amend-
ment.
Mr. Morris. I have no more questions.
The Chairman. That will be all. You will be excused.
(Witness excused.)
Mr. Morris. I think, Mr. Chairman, that we should have Mr. Philip
M. Levy as a witness inasmuch as his name has been mentioned.
The Chairman. Mr. Levy, will you come forward, please.
Mr. Morris. Mr. Levy appeared in executive session today, as you
know, Mr. Chairman, and was asked to stand by.
The Chairjian. Is Mr. Levy's counsel in the audience?
(No reply.)
Mr. Morris. Mrs. Berman. Is Mrs. Berman present ?
^Ir. FoRKR. Senator, we request no photographs be taken.
Tlie Chairman. We will respect your request, Mr. Forer.
Will you be sworn to testify?
Do you swear that the testimony given in this hearing will be the
truth, the whole truth, and nothing but the truth?
Mrs. Berman. I do.
1034 INTERLOCKING SUBVERSION IN GOVERNMENT
TESTIMONY OF MRS. LOUISE R. BERMAN, NEW YORK CITY, N. Y.,
ACCOMPANIED BY HER COUNSEL, JOSEPH FORER
The Chairman. You may be seated. Will you give us your full
name?
Mrs. Berman. Louise K. Berman.
The Chairman. Where do you reside?
Mrs. Berman. In New York City.
The Chairman. I believe you testified in executive session you are
a housewife by occupation ?
Mrs. Berman. Yes, sir.
The Chair]\ian. Mr. Morris, will you proceed with questioning of
Mrs. Berman?
Mr. Morris. Have you been known as Louise Bransten?
Mrs. Berman. That was my name.
Mr. Morris. Was that your maiden name?
Mrs. Berman. My married name.
Mr. Morris. What was your maiden name ?
Mrs. Berman. Louise Eosenberg.
Mr. Morris. Mr. Chairman, we have another portion of this security
memorandum bearing on this gentleman, Mr. Mikhailov, who has been
identified by Mr. Ege here today as a Soviet intelligence officer, I
would like to read into the record. It is a short section.
The Chairman. Proceed.
Mr. Morris (reading) :
During the United Nations Conference on International Organization, held at
San Francisco, in the spring of 1945, Louise Bransten entertained at her home
Dimitri Manuilski, the principal representative of the Ukraine S. S. R., who is
more widely known as a longtime official and spokesman of the Comintern.
Bransten is, at the present time, in New York City where she has established
contact with Pavel Mikhailov, acting Soviet consul general, who has been re-
ported to this Bureau and to the RCMP by Igor Guzenko, mentioned elsewhere
in this memorandum, as the head of Red Army Intelligence espionage activity
in the New York area.
Now, Mrs. Berman, did you entertain in the spring of 1945 at your
home, Dimitri Manuilski ?
Mrs. Berman. I refuse to answer that question on the basis of my
rights under the first amendment, and my privilege under the fifth
amendment, not to be a witness against myself.
The Chairman. Let the record show that your right to refuse to
answer under the first amendment is not recognized by the commit-
tee, but your right to refuse to answer under the fifth amendment is.
Mr. Morris. Did you in 1945 in New York City establish contact
with Pavel Mikhailov, who has been described here today ?
Did you make contact with him sometime in 1945 ?
Mrs. Berman. I refuse to answer on the same ground.
The Chairman. Let the record show under the fifth amendment.
Mr. Morris. Were you in 1945 a member of the Communist Party ?
Mrs. Berman. I object to any question about my political beliefs,
opinions, or affiliations.
Mr. Morris. Yes, Mrs. Berman, but you must understand we are
not dealing with political beliefs. The people here identified are
people who have been described by the witness today as agents of the
Soviet Government. We are asking you in connection with youi- asso-
ciation with them. We are not interested in your political belief.
ESTTERLOCKING SUBVERSION DST GOVERNMENT 1035
Mrs. Berman. What is the question ?
Mr. Morris. Were you at that time an organized member of the
Communist Party of the United States?
Mrs. Berman. I refuse to answer the question on the same grounds.
Mr. Morris. Are you a member of the Communist Party now ?
Mrs. Berman. I refuse to answer the question on the same ground.
Mr. Morris. I have no more questions.
The Chairman. You are excused, Mrs. Berman.
(Witness excused.)
Mr. Chairman. Has Mr. Levy returned, or his counsel?
(No reply.)
Mr. Morris. Is Lement Harris here ?
The Chairman. Mr. Harris, will you be sworn to testify ?
Do you swear the testimony given in this hearing will be the truth,
the whole truth, and nothing but the truth, so help you God ?
Mr. Harris. I do.
TESTIMONY OF LEMENT UPHAM HAERIS, ACCOMPANIED BY HIS
COUNSEL, DAVID M. EREEMAN
The Chairman. Be seated.
Will you state your full name for the committee?
Mr. Harris. Lement U. Harris.
The Chairman. Where do you reside ?
Mr. Harris. In New York City, 2865 Faber Terrace, Far Rock-
away, Long Island.
Mr. Morris. Wliat is your business or profession ?
Mr. Harris. Self employed doing research in agriculture.
The Chairman. You may proceed with the examination.
Mr. Morris. May I read another excerpt from the same security
memorandum which has been identified in the record.
Lement Harris, who resides at Chappagua, N. Y., is a native-born citizen.
Harris is operating ostensibly as a research worker for Farm Research, Inc.,
in New York City. Actually, according to highly confidential and reliable sources,
he is the treasurer of the secret fund of the Communist Party in this country,
which can be used for undercover operations, presumably both of an espionage
and a propaganda nature. Harris is a known contact of Louise Bransten,
Gerhart Eisler, Grace Granich, .Joseph Brodsky, William Z. Foster, Al Landy, and
Alexander Trachtenberg, to mention only a few.
Mr. Harris, did you reside in Chappagua, N. Y. ?
Mr. Harris. I did.
Mr. Morris. Are you a native-born citizen ?
Mr. Harris. Yes.
IVlr. Morris. Did you once operate as a research worker for Farm
Research, Inc. ?
Mr. Harris. I am not willing to answer that, based on possible
self-incrimination under the fifth amendment.
Mr. Morris. Have you been the treasurer of a secret fund of the
Communist Party in this country ?
Mr. Harris. I refuse to answer questions of that character because
it brings in my possible relationship with the Communist Party which
at the present time is a very dangerous thing for anyone to admit to.
Therefore, I use the amendment.
The Chairman. Use the fifth amendment?
1036 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Harris. Use the fifth amendment.
Mr. Morris. To your knowledge were any funds which you
possessed, that you came into possession of as treasurer, used for the
purpose of espionage in this country ?
Mr. Harris. I refuse to answer the question on the same grounds.
The Chairman. The same record.
Mr. Morris. Were funds to your knowledge ever used for propa-
ganda.
Mr. Harris. I would refuse to answer that. I understand what is
in the papers as much as anyone, but I have no wish to add any testi-
mony of my own for the same reason.
Mr. Morris. Did you know a woman named Louise Bransten who
just testified here today ?
Mr. Harris. I must refuse that for the same reason.
Mr. Morris. Did you know Gerhart Eisler ?
Mr. Harris. The same reason.
The Chairman. The record will show all through that the witness
declines to answer under the fifth amendment of the Constitution.
Mr. Morris. Did you ever meet with Gerhart Eisler ?
Mr. Harris. I must refuse on the same grounds.
Mr. Morris. Did you ever meet with Grace Granich ?
Mr. Harris. I must refuse on the same grounds.
Mr. Morris. Did you ever meet with Joseph Brodsky ?
Mr. Harris. I must refuse to answer on the same grounds.
Mr. Morris. William Z. Foster.
Mr, Harris. Same grounds.
Mr. Morris. A1 Landy ?
Mr. Harris. The same answer.
Mr. Morris. Did you ever meet with Alexander Trachtenberg ?
Mr. Harris. Same answer.
Mr. Morris. Are you today a member of the Communist Party ?
Mr. Harris. On that I not only refuse on the basis of the fifth
amendment, but I think it definitely does involve the first amend-
ment, the amendment that guarantees a person a right to speech, a
right to association, and the challenge to a person's right to be a
member of the Communist Party is a challenge to his right to associate
with whomever he pleases.
So I call on both the first and the fifth amendment on such a ques-
tion as that.
The Chairman. The committee will recognize your refusal to an-
swer under the fifth amendment of the Constitution.
Mr. Morris. Have you been connected with the National Farmers
Union?
Mr. Harris. I am a member of the National Farmers Union.
Mr. Morris. You have never been active in that organization?
The Chairman. Have you been active in that organization?
Mr. Harris. Yes ; in a sense that I am a member and have attended
meetings of locals and conventions.
Mr. Morris. The reason for questioning, did you attend a conven-
tion of the National Farmers Union in Topeka, Kans., about 1946
or 1947?
Mr. Harris. Yes.
Mr. Morris. Have you ever been an official of that union?
Mr. Harris. No ; I have not.
INTERLOCKING SUBVERSION IN GOVERNMENT 1037
Mr, INIoRRis. I have no more questions.
Mr. SouRwiNE. I have 1 or 2 questions.
Are you now or have you ever been a member of a worldwide con-
spiracy, having as one of its objectives the overthrow of the Govern-
ment of the United States by force or violence ?
Mr. Harris. I am going to consult.
The Chairman. You may consult your counsel.
(Witness consults with his attorney.)
Mr. Harris. In answer to your question, I want to say categorically
and flatly that in my opinion the honest and truthful answer is "No."
Mr. SouRwiNE. Is the Communist Party of the United States of
America part of a worldwide conspiracy, one of the objectives of
which is to overthrow the Government of the United States by force
and violence ?
(Witness consults with his attorney.)
Mr. Harris. In my opinion, and such knowledge as I have, I want
to say emphatically again that that is not an accurate description of
the functions of the Communist Party of the United States.
Mr. SouRwiNE. I want you to define to the committee the extent of
such knowledge as you have about the Communist Party of the United
States of America.
Mr. Harris. That question I cannot answer because of the jeopardy
that is pervading the country at the present time. I am hoping that
that jeopardy will pass, such as the period of the alien sedition laws
passed and went into our history,
I cannot answer today because of the jeopardy to me.
The Chairman. Why didn't you refuse to answer that under the
fifth amendment ? Is that the reason ?
Mr. Harris. Yes.
Mr. SouRwiNE. Mr. Harris, if the Communist Party is not a part
of the conspiracy to overthrow the Government of the United States
by force and violence, what do j'ou fear by revealing any association
you may have had with that party ?
Mr. Harris. The fear has plenty of ground. There are people in
})rison right now for association and for belief.
I had hoped and really had believed that would never happen in
America. It is also the fear is here because of laws passed, notabl}^
the McCarran Act, which places many people in serious jeopardy.
I regret as much as you to have to rely on the amendment to the
Constitution, but I am very proud that the Constitution provided
that there should not be any such probings into a person's political
beliefs and I think the Constitution in its spirit was against political
harassment.
Mr. SouRWiNE. Are you asserting here that in your opinion if you
answered truthfully questions about your connection with the Com-
munist Party you would incriminate yourself?
Mv. Harris. I am sorry. That question seems to me to be of a
loaded character, and I must refuse to answer it.
Mr. SouRwiNE. Don't you realize, sir, that in order to claim your
privilege under the fifth amendment you must contend and assert
that if you answered truthfully the question which has been put
you it might tend to incriminate you ?
Mr. Harris. I know that, that the line of questions such as I just
refused contains such jeopardy to me and I do so assert.
1038 INTERLOCKING 'subversion EST GOVERNMENT
Mr. SoTJRwiNE. You described yourself as self-employed.
Mr. Harris. That is right.
Mr. SouRwiNE. Conducting agricultural research.
Mr. Harris. That is right.
Mr. SouRwiNE. How do you manage to make a living out of that
self-employment. How do you sell it? Do you write or do you fur-
]iish information to people or to publications, or what?
Mr. Harris. My earnings are somewhat less than that of a Senator,
but I have a little income of my own that is sufficient to permit me to
do that.
Mr. SouRWiNE. Do you have any income from the Soviet Union
either directly or indirectly ?
Mr. Harris. Flatly no.
Mr. SouRwiNE. Have you ever had such an income ?
Mr. Harris. No.
Mr, SouRWiNE. Do you have any income from the Communist
Party?
Mr. Harris. I must refuse to answer that question. It might
incriminate me.
Mr. SouRwiNE. I have no more questions.
Mr. Morris. Mr. Chairman, I would like to ask one question.
In connection with a pamphlet entitled "Meat, a National Scandal,"
by Lement Harris, published by New Century Publishers, I would
like to ask you if you did as a matter of fact write that pamphlet?
Mr. Harris. I am sorry
The Chairman. Would you like to see it ?
Mr. Harris. I can see it from here. I am sorry that the Attorney
General's long list and other reasons that give a certain atmosphere
to many organizations today doing useful things stands in the way of
my answering that question.
The Chairman. You mean you can't answer the question whether
or not you wrote this pamphlet ?
Mr. Harris. That is right, because it leads into an area of possible
jeopardy. I must not answer it.
The Chairman. You mean a truthful answer about this pamphlet
here might tend to incriminate you ?
Mr. Harris. There have been people incriminated because they
walked through a door today in America. Congress carries a terrible
responsibility for it. That condition should be changed.
The Chairman. 'Wliat door are you referring to ?
Mr. Harris. I am referring to the charges against certain Com-
munists who in the indictment against them said they came out of a
certain door. That is the crime with which they are charged. That
is a disgraceful, almost fantastic, state of affairs in my opinion.
Mr. Morris. In this pamphlet it mentions that you spent a year in
the Soviet Union during which you made an intensive study of
Soviet agriculture, visiting many state and collective farms in
U. S. S. R., observing Soviet methods and scientific discoveries in the
sphere of agriculture. Is that a true statement? Did you spend a year
in the Soviet Union ?
Mr. Harris. Yes.
Mr. Morris. What year was that?
Mr. Harris. That was the year 1929, 1930.
INTERLOCKING SUBVERSION IN GOVERNMENT 1039
Mr. Morris. Have you been in the Soviet Union on any other
occasions?
Mr. Harris. Yes.
Mr. Morris. What years?
Mr. Harris. 1935.
Mr. Morris. Since then?
Mr. Harris No.
Mr. Morris. Just two trips to the Soviet Union ?
Mr. Harris. Eight.
Mr. Morris. Did you study intensively Soviet agriculture ?
Mr. Harris. I worked at it and studied it both.
Mr. Morris. On the basis of that experience you have proceeded to
write various articles on the subject. I am not referring to this
pamphlet.
(Witness consults with his attorney.)
Mr. Harris. That is right.
Mr. Morris. I have no more questions.
The CiiAiRMAX. Are there any further questions ?
You may be excused.
(Witness excused.)
]\Ir. Morris. I understand Mr. Philip Levy has come in.
The Chairman. Do you swear the testimony given in this hearing
will be the truth, the whole truth, and nothing but the truth, so help
you God?
Mr. Levy. I do.
The Chairman. Be seated and let the record show that Mr. Levy
is present with his counsel.
You will state your full name for our committee.
TESTIMONY OF PHILIP LEVY, ACCOMPANIED BY HIS COUNSEL,
MAXWELL M. ALBACH
Mr, Levy. Philip Levy.
Mr. Morris. Where do you reside ?
Mr. Levy. 257 Kingsland Terrace, South Orange, N. J.
Mr. Morris. What is your business or profession?
Mr. Levy. Export-import and textiles.
Mr. Morris. Of textiles?
Mr. Levy. General merchandise.
Mr. Morris. May I point out that this witness is called here today
because his name has been mentioned in the security memorandum
and for no other reason, but for the fact that his name appeared in
the memorandum.
I would like to read again for the benefit of you, Mr. Levy, a cer-
tain security memorandum that has been classified by our Govern-
ment as secret. We want to give you an opportunity to make com-
ment on what the memorandum said. It is for that purpose and only
that purpose that you were called here today.
There is no implication of any kind in the fact that you are here :
Physical surveillances and confidential sources have identified as a contact
of Victoria Stone, I'hilip M. Levy, of South Oran;:e, N. J. According to the
records of the Department of State, Levy had provided the business cover for
Leon Josephson, a former Nevp Jersey lawyer, who now operates Cafe Society
Uptown and Cafe Society Downtown in New York City, when Josephson traveled
1040 INTERLOCKING SUBVERSION IN GOVERNMENT
to Copenhagen, Denmark, with one George Mink in 1935. Both Josephson and
Mink were arrested by tlie Danish police and charged with esffionage on behalf
of the Soviets. Josephsou was released very shortly after his arrest, but Mink
was held for many months and finally deported to the Soviet Union.
Now, Mr. Levy, do you know a person named Victoria Stone?
Mr. Levy. I do.
Mr. Morris. Who is Victoria Stone?
Mr. Levy. A person who operates a jewelry store on Madison
Avenue.
Mr. Morris. Operates a jewelry store on Madison Avenue ?
Mr. Levy. Yes.
Mr. Morris. What is the basis of your knowledge ?
]Mr. Levy. I knew her as a friend of Julius Heiman.
Mr. ^Morris. Who is Julius Heiman ?
_Mr. Levy. He is a man whom I met in business and through some
friend many years ago.
Mr. Morris. Do you have any Imowledge that Julius Heiman was
in fact a Soviet agent ?
Mr. Levy. Never.
Mr. Morris. You don't know ?
Mr. Levtt. None whatsoever.
Mr. Morris. But you know Victoria Stone because Victoria Stone
is a friend of Julius Heiman?
Mr. Levy. Yes.
Mr. Morris. Do you know Leon Josephson ?
Mr. Levy. Yes.
Mr. Morris. Wliat is the basis of your knowledge of Josephson?
Mr. Levy. I knew him years ago. He once helped do some, showed
me how to do some bookkeeping years ago.
Mr. Morris. Some bookkeeping?
Mr. Levy. Single-entry bookkeeping way back when I was doing
some small business in textiles.
Mr. Morris. Is tliat your only association with him ?
Mr. Levy. That was the only association up to that time.
Mr. Morris. How about associations after that time?
Mr. Levy. I had no business with him. Wlien I was away on a
trip on business abroad, when I was not in the office, he obtained
samples of lubricating oil from my office without my knowledge. I
have written that in a letter to the State Department "many years ago.
Mr. Morris. He did it without your knowledge?
Mr. Levy. Tliat is right.
Mr. Morris. You wrote that fact to the State Department many
years ago?
Mr. Levy. I did.
Mr. Morris. Did you know a man named Arthur Adams about
whom Ave have had mucli testimony here today?
Mr. Levy. I knew a man by the name of Adams who I am told now
is named Arthur Adams.
Mr. Morris. Who is the Arthur Adams you did know?
Mr. Levy. This man Adams I knew was introduced once to me by
a man by the name of Blumlein.
Mr. Morris. Will you spell that name, please?
Mr. Levy. B-1-u-m-l-e-i-n. And Mr. Blumlein wanted to know if
I would be willing to import, to go into an import business or export
business with Canada.
INTERLOCKING SUBVERSION IN GOVERNMENT 1041
Mr. Morris. So Adams asked you-
Mr. Levy. Not Adams — Mr. Blumlein. I said that I did not have
any money to put into a business, but I would be glad to do it since
1 knew how to do export-import business. We went up to a lawyer's
office by the name of Aronoff.
Mr. Morris. Is that Jacob Aronoff ?
Mr. Levy. I would not know his first name; I don't recall it. li
might be that.
And the corporation papers were drawn up.
Mr. SouRwiNE. Where was that office ; do you know ?
Mr. Leatt. About 165 Broadway I think. I think it was the Men-
son Building. I don't recall the year, but I would put it around 1936,
roughly.
Mr. Morris. Now, was this corporation known as Technological
Laboratories, Inc. ?
Mr. Levy. I didn't know it, I didn't remember the name at all. I
couldn't recognize the name. Never heard of it until it was told to
me a few daj^s ago by the FBI and by you and I say that may be it,
but I don't recall it.
Mr. Morris. How active was this business you have been describing
to us?
Mr. Levy. Nothing materialized from it.
Mr. Morris. In other words, it was just a paper corporation?
Mr. Levy. That is right ; that is all.
Mr. Morris. Did you know in May 1939 Arthur Adams was listed
as the president ancl treasurer of that corporation ?
Mr. Levy. No.
Mr. Morris. You don't know that?
Mr. Levy. No.
Mr. Morris. You know he was connected with it?
Mr. Levy. Yes ; because he was one of the incorporators.
Mr. Morris. To your know^ledge he could have been president and
treasurer.
Mr. Levy. He could be that. He could be anything, too.
Mr. Morris. In other words, you didn't take great interest in this
corporation ?
Mr. Levy. No business materialized. I just forgot about it com-
pletely.
Mr. Morris. Did you know in 1939 Philip Levy is listed as secretary ?
Mr. Levy. I didn't know that.
Mr. Morris. And Jacob Aronoff is listed as assistant secretary.
Mr. Levy. I didn't know that.
Mr. Morris. Was any stock issued to you?
Mr. Levy. None whatsoever.
Mr. Morris. Do you know that as a fact or do you know that you
didn't possess any certificates?
Mr. Levy. I did not possess any and I don't know any was issued
tome.
Mr. Morris. It could have been one share of stock issued to you,
and yet you did not know ?
Mr. Levy. That is right.
Mr. SouRwiisTE. You were an incorporator?
Mr. Levy. I was ; but that is all I heard of it.
1042 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. SouRwiNE. Don't you have sufficient knowledge of law to know
that an incorporator must own stock?
Mr. Levy. I didn't know that.
Mr. SouRwiNE. Do you know it now ?
Mr. Levy. I have seen corporations made with ordinary dummies
who are clerks in the office and then they do something or other and
then the corporation is formed.
Mr. SouRwiNE. Were you a dummy in this deal?
Mr. Levy. No ; but I wouldn't say I was a dummy. I intended to
go into that deal to make some money, but nothing happened.
Mr. SouRWiNE. You were not stooging for anybody else?
Mr. Levy. Not at all.
Mr. SouRwiNE. You were going to get a share of the profits if there
were profits?
Mr. Levy. If business were made I was going to get a share of the
profits.
Mr. Sourwine. It was your understanding you were to get a share
of the corporation ?
Mr. Levy. That is right.
Mr. Sourwine. Wlien it was formed you owned a part of it?
Mr. Levy. I don't know that. I should have, I suppose, but I
didn't.
Mr. Morris. Did you have any knowledge at all that Arthur Adams,
listed as president and treasurer of this corporation, was a Soviet
agent ?
Mr. Levy. None whatsoever.
Mr. Morris. Have you ever been a member of the Communist Party ?
Mr. Levy. No, sir.
Mr. Morris. You have never attended Communist meetings?
Mr. Levy. No, sir.
Mr. Morris. You have never dealt with anybody you knew was an
acknowledged Soviet agent?
Mr. Levy. That is correct.
Mr. Morris. That is your unqualified testimony?
Mr. Levy. That is right.
Mr. Morris. That you never dealt with these people, Arthur Adams,
Julius Heiman, or anybody else at any time with the knowledge that
they were in fact Soviet agents?
Mr. Levy. That is right.
Mr. Morris. Do you know whether a corporation that you were con-
nected with ever provided business cover for Leon Josephson ?
Mr. Levy. I don't know that.
Mr. Morris. You don't know that Leon Josephson ever traveled
for a corporation with which you had anything to do?
Mr. Levy. I don't recall of any.
Mr. Morris. You have given us your full experience, you have told
us fully about your dealings with Leon Josephson?
Mr. Levy. No ; I wouldn't say that. I would say that a little later
there was a small business thatlasted only a few months in trying to
sell an intercommunication instrument.
Mr. Morris. What was that ? Will you tell us about that, please ?
Mr. Levy. There were a couple of people from Newark who knew
intercommunication instruments, and I don't remember their names.
INTERLOCKING SUBVERSION IN GOVERNMENT 1043
Mr. Morris. Was that Standard Sound Products?
Mr. Levy. That is it. And it went for a few months and nothing
happened. I lost a little money, and that is that.
Mr. Morris. How did Mr. Josephson figure in that business?
Mr. Levy. If there were profits he might have shared in the profits.
Mr. Morris. Did he ever travel in connection with that ?
Mr. Levy. Not that I know of.
Mr. Morris. What other corporations have you been connected with,
Mr. Levy ?
Mr. Levy. I was connected with Victory Fluorescent Lighting. I
remember that one. I don't remember the people particularly that I
was in with, but they were local people.
Mr. Morris. I have no more questions, Mr. Chairman.
Mr. SouRwiNE. You testified about Victoria Stone and said she was,
what was your phrase, "ran a jewelry store"; was that it?
Mr. Levy. Yes; she operated a jewelry store.
Mr. Sourwine. Where is that jewelry store?
Mr. LE\Tf. On Madison Avenue.
Mr. SouR\viNE. Have you been there?
Mr. Levy. I have been there.
Mr. Sourwine. Many times?
Mr. Levy. I might have been there quite a few times. I wouldn't
say many.
Mr. Sourwine. Have you been there recently?
Mr. Levy. No.
Mr. Sourwine. How long has it been since you were there?
Mr. Levy. I would say about 6 years, anyway, at least.
Mr. Sourwine. Do you know whether she still runs the store?
Mr. Levy. I don't know. I will say this, I passed by I think in a
car or something and I think the sign is still there. Whether she
runs it or not, I don't know.
Mr. Sourwine. Is her name on the door ?
INIr. LE\Tr. I was too far away to see that, but there would be a
big sign on the store.
Mr. Sourwine. Do you know who owns that store ?
Mr. Levy. I don't.
Mr. Sourwine. Do you know anybody who has a financial interest
in it?
Mr. Levy. I could suspect that it could be Julius Heiman, but I
wouldn't know.
Mr. SouRwaNE. That is all.
Mr. Morris. Did you ever have a business at 60 or 66 Leonard
Street?
Mr. Levy. Yes ; I was there many years.
Mr. Morris. What was the nature of your business there ?
Mr. Le\'Y. The same as now, this Federated Trading Corp.
Mr. Morris. To your knowledge did Arthur Adams visit that
establishment on occasion?
Mr. Levy. Never.
Mr. Morris. Never to your knowledge ?
Mr. Levy. Never.
Mr. Morris. You made one trip to Mexico, did you not?
Mr. Levy. I did.
1044 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Morris. You had difficulty getting a passport to travel?
Mr. Levy. I did.
Mr. Morris. Did you intervene witli a friend of yours to help you
with that?
Mr. Levy. I did.
Mr. Morris. With whom did you intervene?
Mr. Levy. David K. Niles.
Mr. Morris. Who was he at the time?
Mr. Levy. He was Presidential assistant.
Mr. Morris. You asked him to help you to get this difficulty cleared
np about the passport?
Mr. Levy. I did.
Mr. Morris. Did he help you ?
Mr. Levy. He did.
Mr. Morris. Did you make the trip to Mexico ?
Mr. Levy. I did.
Mr. Morris. What year was that?
Mr. Levy. 1945.
Mr. Morris. Were you also president of the Paramount Natural
Gas Co.?
Mr. Levy. That is right.
Mr. Morris. That is at 810 Bridge Street?
Mr. Levy. That was an address that may have been put there. J
went in with a fellow by the name of — well, he worked for a steamship
company.
Mr. Morris. Wliat was his name ?
Mr. Levy. Hawk. And I think we lost some money on that.
Mr, Morris. Were you president of the Export Discount Corp. ?
Mr. Levy. No.
Mr. Morris. Never?
Mr. Levy. Never.
Mr. Morris. Were you connected with a firm known as Emmons
Hardware Co., Inc. ?
Mr. Levy. Yes.
Mr. Morris. AVhat was your connection with that firm ?
Mr. Levy. We were trying to sell woodscrews imported from Bel-
gium and from Japan.
Mr. Morris. Did you ever do any business with the Amtorg Trad-
ing Corp. ?
Mr. Levy. None whatsoever.
Mr. Morris. Do you know a man named MemalofF?
Mr. Levy. Yes.
Mr. INIoRRis. Who was he ?
Mr. Levy. He is a friend I have known for many years.
Mr. Morris. Do you know a Dr. Louis Miller?
Mr. Levy. I don't know him.
Mr. Morris. You were also treasurer, I think you said, of the Vic-
tory Fluorescent Lighting Co. ?
Mr. Levy. That is right.
Mr. Morris. How about Federated Corp. ?
Mr. Levy. That is the one I am in now.
Mr. Morris. That is your present job?
Mr. Levy. That is right.
INTERLOCKING SUBVERSION IN GOVERNMENT 1045
Mr. Morris. How about the corporation Simplicity Patterns?
Mr. Levy. I never heard of it until it was spoken of today.
Mr. Morris. No further questions.
The Chairmax. If there are no further questions, you may be ex-
cused.
(Witness excused.)
The Chairman. The committee at this time will recess until 10
o'clock tomorrow morning.
(Thereupon, at 4 : 10 p. m., a recess was taken until Thursday, Octo-
ber 29, 1953, at 10 a. m.)
INTERLOCKING SUBVERSION IN GOYERNMENT
DEPARTMENTS
THURSDAY, OCTOBER 29. 195.'^
Subcommittee To Ina^stigate the Administration
OF THE Internal Security Act and Other Internal
Security Laws of the Committee on the Judiciary,
; New York, N. T.
The subcommittee met, pursuant to notice, at 10 a. m., in room 110,
United States Courthouse, Foley Square, New York, N. Y., William
E. Jenner (chairman of the subcommittee) presiding.
Also present: Robert Morris, subcommittee counsel; Benjamin
Mandel, director of research ; and Robert C. McManus, professional
staflf member.
The Chairman. The committee will come to order. We will pro-
ceed with the witness who was on the stand yesterday and who was
interrupted for the convenience of the other witnesses.
TESTIMONY OF ISMAIL EGE (ISMAIL GTJSSEYNOVICH AKHMEDOFF),
WASHINGTON, D. C— Resumed
Mr. Morris. Mr. Chairman, yesterday we had gotten to that part
of the interrogation of Mr. Ege where we were identifying particular
agents, Soviet agents of the third or fourth section of Soviet intelli-
gence. Then we were tracing what their activity was with respect
to espionage in the United States.
I think we had mentioned Mr. Rogov. The witness had stated that
Mr. Rogov was a member of the third section, an officer in the third
section and we showed for the record some of Mr. Rogov's activities
in the United States.
Also, Mr. Ege brought out the fact that a certain agent working
in the fourth section — that was Mr. Ege's own section — was a man
named Adams who was an active Soviet agent in the United States.
Then we proceeded to put into the record a certain security memo-
randum and certain witnesses involved in the security memorandum
to show how Mr. Adams did operate in the United States.
I think then the other agent was Mr. Mikhailov. I would like to
ask a few questions about him.
Who was Mr. Mikhailov ?
Mr. Ege. Mr. Pavel Mikhailov was in 1941 in the winter — by winter
I mean February or March, December 1940 — chief of European sec-
tion of fourth section with rank of engineer of second rank.
He was graduated from the academy of the air force. He came
to the intelligence service 2 or 3 years before my appointment.
Mr. Morris. Before 1940?
1047
1048 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Ege. That is right.
Mr. Morris. He was a Soviet intelligence officer in the vears anDrox-
nnately 1938 ? ^ i i
Mr. Ege. 1938, 1939 and 1940 and 1941. In 1941 1 left for Germanv
m May. ^
Mr. Morris. What rank did he have at that time ?
Mr. Ege. Engineer of second rank which is equal to major.
Mr. Morris. Of course yon don't know anything about him after
1 942 wdien yon defected ?
Mr. Ege. I don't know anything.
Mr. Morris. Yesterday we had on here a witness who had been
named m this security memorandum as being a contact of Mikhailov
here in the United States.
Now, did you know that man named Dimitri Manuilski ?
Mr. Ege. Well, personally I did not know him, but Manuilski is
very well known all over the world and in the Soviet Union, because
once he was head of the delegation of All Union Communist Party at
Comintern.
Mr. Morris. He was a Comintern man ?
Mr. Ege. Yes.
Mr. Morris. Where does that fit into the intelligence scheme, Mr.
Ege? '
Mr. Ege. It would fit in the central committee of the Communist
Party, U. S. S. R., heading the delegation of this Communist Party
with the Comintern. So he was here.
As he was on a high level, party level, chiefs of sections had no
contact with him. As usual the routine, this contact was done always
in person by the Chief of Russian Intelligence Department of
General Staff.
Mr. Morris. Now would he be an intelligence agent?
Mr. Ege. He would not be.
Mr. Morris. Manuilski ?
Mr. Ege. He would be helping intelligence activities in directing
it but he, himself, would not be agent.
Mr. Morris. He would be director of intelligence, a general?
Mr. Ege. He would not be director because the intelHgence depart-
ment was directed by generals, but he would be a man who from
Comintern would help to get some reliable foreign Communists into
Russian service.
Mr. Morris. Mr. Chairman, the section of the security memoran-
dum we had in the record yesterday was this :
During the United Nations Conference on International Organization, held at
San Francisco in the spring of 1945, Louise liransten entertained at her home
Dimitri Manuilski, the principal representative of the Ukraine S. S. R., who is
more widely known as a longtime official and spokesman of the Comintern.
Bransten is, at the present time, in New York City where she has established
contact with Pavel Mikhailov, acting Soviet consul general, who has been
reported to this Bureau and to the RCIMP by Igor Guzenko, mentioned elsewhere
in this memorandum, as the head of Red army Intelligence espionage activity in
the New York area.
In 1945 we had a secret security memorandum of the United States
security agencies stating that Mr. Pavel Mikhailov whom this witness
knew previously to be a major in Soviet intelligence, at that time was
head of the Red army intelligence espionage activity in the New
York area, making a contact with an individual witness whom -we had
INTERLOCKING SUBVERSION IN GOVERNMENT 1049
here yesterday who would not deny that contact, but instead invoked
the fifth amendment.
Now did you know a man named Malikov ?
Mr. Ege. Yes.
Mr. ]\IoRRis. Who was Mr. Malikov ?
Mr. Ege. Mr. Malikov was in 1929 military attache to Iran, residing
in Teheran.
At that time I was in the top section of the intelligence section of
the Caucasian army headquarters. This intelligence section was
charged with the organization of intelligence against Turkey and
Iran as far as that was the case.
Malikov was in contact with the fourth section which is intelligence
section of the headquarters of the Caucasian Red army.
Now, in 1932 Malikov was appointed chief of the intelligence section
of the above-mentioned headquarters of the Caucasian Army. When
I was sent to the military electrotechnical college in Leningrad, Mali-
kov was appointed to the intelligence headquarters of the general
staff here.
After that I don't know what happened to him. He was one of the
top Soviet intelligence officers.
Mr. Morris. Mr. Chairman, the staff has completed a survey of the
security memorandum that has been identified in this record.
On the basis of that survey we have here three more pages. Yester-
day we gave out two pages of this memorandum. We have here three
more pages which can be released and put in this record for the infor-
mation of the committee in trying to determine the problems facing the
committee in the recommendation of legislation.
I would like these three additional pages to go into the record at
this time.
The Chairman. They may go in the record and become part of the
record.
(The documents referred to are as follows :)
Kravchenko further stated that Gen. Leonid Rudenko, the chairman of the
Soviet Government Purchasing Commission, is in charge of the collection of
secret information for transmittal to Moscow. According to Kravchenko, he
was told by Rudenko on March 30, 1944, that his office safe contained much
valuable secret information regarding tank motors, navigation instruments, and
secret airplane devices which he and his subordinates had obtained in the United
States. This material was to be dispatched to Moscow by pouch at the earliest
opportunity. Kravchenko also advised that General Rudenko was actually a
political officer rather than a real military officer inasmuch as Rudenko was
chairman of the executive committee of the Communist Party in Rostov and
also a member of the state political bureau of the party prior to the war.
Kravchenko also advised an agent of this bureau that Moscow has at the
present time complete data of the industrial organization within the United
States and every day is collecting additional information regarding commercial
and private industry in this country. Stalin is better informed, according to
Kravchenko, on United States and the productiveness of the United States firms
than is the IJnited States Government.
NELSON-ZUBILIN MEETING OF APRIL 10, 1943
Steve Nelson now is a member of the national board of the National Committee
of the Communist Party of the United States. He has used the aliases Stephan
Mesarosh. Steve J. Mesarosh, Joseph Fleishchinger, Louis Evans, and "Hugo."
The latter name, according to a highly confidential source, is the cover name used
by him in making contacts with the Soviet consulate in San Francisco, Calif.
According to the Immigration and Naturalization Service records. Nelson was
born in 1903 in Yugoslavia of Jewish parents and arrived in the United States at
1050 INTERLOCKING SUBVERSION IN GOVERNMENT
the port of New York, June 14, 1920, making an illegal and fraudulent entry
under the name Joseph Fleishchinger. This entry was legalized by order of the
Immigration Service, November 21, 1922, and he became an American citizen
by naturalization at Detroit, Mich.. November 26, 1928.
According to a highly confidential and reliable source. Nelson attended the
Lenin School in Moscow in the 1930's. In August 1930 he applied for a United
States passport, and, according to the State Department records, willfully
furnished fictitious information in his application to the effect that he was born
in Rankin, Pa. In July 1933, Nelson filed with the American consul at Vienna
Austria, for a 2-year renewal of his passport, stating that he had resided in
Russia from September 1931 to May 1933, and had resided in Germany, Switzer-
land, and Austria from May to July 1933.
A highly confidential and reliable source has advised that Nelson claims he
was in China for 3 months in 1933, working for the Comintern in Shanghai and
that a coworker in Shanghai was Arthur Ewert, a well-known Comintern agent
subsequently sentenced to imprisonment in Brazil for his part in tie Communist
revolution of 1935.
According to a highly confidential source. Nelson is quoted as stating that he
performed espionage ^^•ork for the Soviet Government during the period that
he was absent from the United States. The exact date of his return to this
country is not known, but in 1934 he contributed an article to the Party
Organizer, official organ of the Central Committee of the Communist Party,
U. S. A. During the Spanish civil war, considerable publicity was given in the
Communist press to the fact that Nelson had gone to Spain and had risen to
the rank of lieutenant colonel in the International Brigade of the Loyalist army
Upon Nelson's return from Spain in the latter part of 1937 he became active in
the affairs of the Veterans of the Abraham Lincoln Brigade and in the American
League for Peace and Democracy. Since 1938 he has been a national figure in
the Communist Party in this country.
A highly confidential and reliable source quoted Nelson in November 1941 as
saying, "Roosevelt and Churchill are fine men, but we cannot expect them to
promise socialism. We know there will be quarrels, but now we must defeat
Hitlerism-fascism. We may have to take guns against the United States and
England later."
A highly confidential source of complete reliability furnished information that
on April 10, 1943, Nelson was visited at his home, then in Oakland, Calif by
Vassili Zubilin, a secretary of the Soviet Embassy, Washington, D. C, who has
been definitely indicated by investigation by the Federal Bureau of Investigation
to have been the head of NKVD activity in the United States from 1942 until
his recall to the Soviet Union in August 1944. According to a confidential and
reliable source, Zubilin's cover name was "Cooper."
At the time of this meeting, Zubilin was working the Comintern apparatus.
Nelson advised Zubilin that his work on behalf of the apparatus had been predi-
cated upon a note from Moscow which had been brought to him by a courier
from New York and that Earl Browder was fully cognizant of the fact that he,
Nelson, was engaged in secret work for the Soviets.
Nelson discussed thoroughly with Zubilin the various personalities engaged
in work for the Comintern apparatus on the west coast, using for the most part
cover names in referring to them. The principal activities which were not being
conducted to Nelson's satisfaction were contacts with Japanese Communists
m the relocation centers and the handling of literature and other documentary
material which was being transmitted to points in the South Pacific by Com-
munist seamen couriers.
Nelson also discussed thoroughly with Zubilin what are vaguelv described by
him as "Russian activities," to distinguish them from the political and propa-
ganda work of the Comintern. In connection with these "Russian activities"
he pointed out that a number of the officials of the Communist Party were
alarmed by the fact that Soviet representatives would approach party members
in California and give them specific assignments, presumably of an" espionage
nature, and would instruct them to say nothing to their superiors in the party
regarding the assignments given them by the Soviets. Nelson suggested to
Zubilin that in each important city or State, the Soviets have but one contact
who was trustworthy, and to let that man handle the contact with party mem-
bers who were to be given special assignments by the Soviets.
At the time of this meeting. Nelson complained to Zubilin about the inefficiency
of two persons working for the apparatus. (These persons, who later were
identified through investigation by the Federal Bureau of Investigation as Getzel
I INTERLOCKING SUBVERSION IN GOVERNMENT 1051
Hochberg and Mordecai Rappaport, were relieved of their duties for the ap-
paratus and actually transferred to other cities from those in which they had
been working — Hochberg from New York to Detroit, and Rappaport from the San
Francisco Bay area to Los Angeles, Calif.)
Vassili Mikhailovich Zubilin, with aliases, V. Zarubin, Vassili Luchenko, and
"Cooper," was born January 22, 1900, in Moscow, according to the protocol form
filed with the State Department by the Soviet Embassy. In January 1942, he
was appointed third secretary of the Embassy of the U. S. S. R. in Washington,
D. C. He was subsequently raised in grade to second secretary. He was finally
recalled to the Soviet Union and departed August 27, 1944. While in the United
States, he was accompanied by his wife, Elizabetha Yurevna Zubilin, and his
12-year-old son.
COMMUNIST PAKTY OFFICIALS ENGAGED IN ACTIVITY FOB THE COMINTERN APPARATUS
It will be recalled that Vassili Zubilin, second secretary of the Soviet Embassy,
Washington, D. C, and the reported head of NKVD activity in the United States,
was working with the Comintern apparatus in conection with his intelligence
program. Communist functionaries active in the apparatus have been identified
as follows :
During the United Nations Conference on International Organization, held at
San Francisco in the spring of 1945, Louise Bransten entertained at her home
Dimitri Manuilski, the principal representative of the Ukraine S. S. R., who
is more widely known as a long-time official and spokesman of the Comintern.
Bransten is, at the present time, in New York City where she has established
contact with Pavel Mikhailov, acting Soviet consul general, who has been reported
to this Bureau and to the RCMP by Igor Guzenko, mentioned elsewhere in this
memorandum, as the head of Red army intelligence espionage activity in the
New York area.
Gregori Markovich Kheifetz, whose cover name was "Mr. Brown," was, until
his departure from San Francisco for the Soviet Union, July 6, 1944, the ^'ice con-
sul at the Soviet consulate, San Francisco. According to the protocol form filed
by the Soviet Embassy with the Department of State, Kheifetz was born in Mos-
cow, May 15, 1899. Reportedly, from this protocol form, Kheifetz had served as
vice president of the Society for Cultural Relations with Foreign Countries
(VOKS) from 19.37 to 1941, when he arrived in the United States. However,
highly confidential and reliable sources have advised that Kheifetz performed
special work for the Soviet Government in Germany from 1934 through 1938,
which resulted in the identification and punishment of persons involved in sub-
version, which culminated in the "blood purge" of 1938 in the Soviet Union. A
highly confidential source has reported that Kheifetz alleged, on one occasion,
that he had been a secretary at one time to the widow of Lenin.
SOVIET ESPIONAGE ACTIVITIES IN THE UNITED STATES AFTER WORLD WAR II
During the period since VE-day and particularly since VJ-day, the picture of
Soviet espionage activity in the United States has become clearer.
According to the information furnished to a representative of this Bureau and
to the Royal Canadian Mounted Police by Igor Guzenko, as set out elsewhere
in this memorandum, the headquarters of Red army intelligence in Moscow issued
instructions after the use of the atomic bomb on Hiroshima and on Nagasaki,
and in fact subsequent to the actual surrender of Japan, that the discovery of all
technical phases of the construction of the atomic bomb was the No. 1 espionage
project for the Soviets.
Under these instructions it would not be likely that Soviet espionage in this
country would decrease. According to Guzenko, the complete data was to be
supplied to Moscow regarding the atomic bomb by the end of December 1945.
As far as Red army intelligence activity in the United States is concerned,
only three persons previously identified in this memorandum as engaged in espi-
onage activity are still connected with the official representation of the Soviets
in the United States. These three are Gen. Ilia Saraev, military attach^, Soviet
Embassy, Washington, D. C. ; Pavel Mikhailov, acting Soviet consul general. New
York City; Col. A. I. Servin, tank department, Soviet Government Purchasing
Commission, Washington, D. C. In addition to these, there have been identified
in this memorandum * * * of the Office of Scientific Research and Development,
who is reportedly working for Red army intelligence, as well as the group pri-
marily located in New York City, headed by Arthur Alexandrovich Adams.
1052 INTERLOCKING SUBVERSION IN GOVERNMENT
In addition to tlie above individuals reportedly active at tlie present time,'
there are still residual elements of the old Soviet military intelligence organiza-
tion, whose activities in the United States are still under investigation. It may
be noted that all individuals mentioned in this memorandum as having vrorked
for the Soviet military intelligence at any time vpho are still in this country are
being checked carefully.
With regard to the NKVD organization in the United States, the Soviet repre-
sentatives identified in this memorandum as members of the NKVD who are
still active in this country are as follows : Andrei Schevchenko, Amtorg, New
York City ; Lenoid Malov, Soviet consulate, New York City ; Mikhail Mukachev,
Soviet consulate, Los Angeles, Calif.
"With regard to Andrei Schevchenko, this individual has been particularly
active in attempting to obtain classified United States Army information regard-
ing jet propulsion. It is interesting to note that Elizabeth Bentley has stated
that Anatole Gromov has advised her that he would be engaging in no further
contacts with her after November 21, 1945, until the last week of January 1946.
Mr. Morris. One of these sections concerns the relation of one Steve
Nelson with a man named Vassili Zubilin, secretary of the Soviet
Embassy in Washington in the year 1943.
Did you know Mr. Zubilin ?
Mr. Ege. I did not.
Mr. Morris. Now, Mr. Ege, would you tell us the role that the
Soviet Embassy in Washington and the Soviet Ambassador to Wash-
ington played in Soviet espionage based upon your own personal
experience in the Soviet intelligence system?
Mr. Ege. Well, in 1942 Soviet Ambassadors, having their diplo-
matic position as chief of the Embassy, were a little away from in-
telligence activities.
That does not mean that they did not, though. Under roofs of So-
viet embassies, consulates, trade organizations, there were secret organ-
izations of Soviet intelligence channels working for Soviet intelli-
gence. But they personally did not take part in it and did not
direct it.
In 1942, approximately in February or January, there was top
secret order.
Mr. Morris. This is January of what year?
Mr. Ege. 1941.
Mr. Morris. There was a top secret order. Did you see this?
Mr. Ege. I read it mj^self and signed it that I had read it.
Mr. Morris. You signed that you had read this top secret order?
Mr. Ege. That is right.
Mr. Morris. What did the order say?
Mr. Ege. That order was issued by the Central Committee of the
Communist Party of the Soviet Union, and the Bi-Council of Peoples
Commissars and was signed by Stalin and Molotov.
In that order it was stated that from now on Ambassadors of Soviet
Union had to become real bosses. In Russian that is tlie word
"Chaosyain." In English translated, that means proprietor, boss,
the first manager, the person who is running some business.
Under this work always in cablegrams and in secret correspondence
their names were always mentioned this way as proprietors, as bosses.
For instance, the chief of the Eussian military intelligence was re-
ferred to always, not as chief of Eussian intelligence, but as director.
For instance, in relation to NKVD apparatus, Russian intelligence
used the word "sosedy."
The Chairman. Meaning what ?
INTERLOCKING SUBVERSION IN GOVERNMENT 1053
Mr. Ege. Meaiiinc: nei^jlibors. That is iieiglibor or<iaiiization. The
same NKVD effect in rehition to military apparatus; and in secret
correspondence you would not find the word "ambassador" or chief
of militar}' intelli£>:ence, or NKVD, even not Communists; were called
members of trade unions, "profsousnike."
Mr. Morris. Does that mean there would be cover names even in
vour own internal communications?
Mr. Ege. That is right.
jNIr. Morris. They would not even use the name "Communist Party
member,'' they would use "members of the trade union ?"
Mr. Ege. That is right.
Mr. Morris. In connection with members of NKVD, they would
use "neighbors?"
Mr. Ege. That is right.
Mr. Morris. Ambassadors were what ?
^Ir. Ege. Boss. The Communist Party members, and I would tell
in 1941, 90 percent that were sent to foreign countries were Commu-
nists and had taken away the Communist Party documents and were
sent as no party members.
They have no right to tell that they are Communists. So they were
referred as trade-union members or profsousnike.
Now the top-secret document signed by Stalin and Molotov made
an excellent point in a very categorical way that up to this date. I
mean the date of issue of that order, Ambassadors were not playing
the role of real boss.
Mr. Morris. Repeat that again. Up to this point this directive
which you read and signed for stressed the point that the Ambassador
up to that time had not been playing the role of the real boss?
Mr. Ege. That is right.
Mr. Morris. And the date again ?
Mr. Ege. That was January or February 1941.
Mr. Morris. Continue please.
i\Ir. Ege. And it was pointed out that especially in the most impor-
tant countries as Germany, United States, Turkey, Ambassadors had
to play that role of boss in every sense of the word, representing in
the country in which they were a real representative of Communist
Party and Soviet Government.
Now, historically it is known and that is not secret that there was
always a fight between the intelligence channels I was talking of yes-
terday, between the intelligence of NKVD and of the general staff,
and there was a fight between navy intelligence and NKVD, but there
was never fight between general staff intelligence and navy intelli-
gence.
That is explained by the fact that intelligence department and
navy intelligence department consisted of professional intelligence
officers having the necessary education for that and running their
business according to the directives of the general-staff chief.
NKVD is the most dreadful organization, is the secret political
police, and was trying to put their hands here to control them and
to make competition in that field. That brought always for the
Soviet Government undesired results.
For instance, I was mentioning yesterday Avakinyan was NKVD
resident in the United States, was arrested in May or the end of
April 1941 by the FBI.
y
1054 INTERLOCKING SUBVERSION EST GOVERNMENT
Everybody in the intelligence department was laughing and that
was just for them a good occasion to make good face. But in NKVD
everybody was, of course, down. That is a little demonstration.
But from 1929 as far as I knew Russian intelligence, they were
always fighting each other. That top-secret document was pointing
to that unsound competition and pointing out that Ambassadors had
to coordinate the intelligence activities of these various channels.
That means that Ambassadors from that date became responsible for
the coordination of the intelligence activities of Russian military,
NKVD, and Navy intelligence organizations, and it was pointed out
that from that date responsible representatives of the military intel-
ligence, NKVD intelligence and navy intelligence, had to send first-
hand information at first to the Ambassador before sending their
information to Moscow headquarters.
It was very characteristic of Dekanosov, who was Ambassador of
Soviet Union to Germany just before the war, became the real boss,
and he was directing the militaiy attache of Soviet Russia, Major
General Tupikov, and resident of NKVD, first consul of Soviet Ain-
bassador in Berlin, Kubalov, and all other persons I mentioned yes-
terday, press attache level, Tass president, Tarasov, and so on, to
get that information ; to give it to him and trying to direct it in person.
The same happened after that order in Turkey, where in 1941-42,
where the Ambassador to Turkey of the Soviet was Mr. Vinogradov.
He was Soviet Ambassador to Turkey.
Mr. Morris. As a result of that directive he was put in as coordina-
tor of intelligence ?
Mr. Ege. That is right.
Mr. Morris. Now, that is from your own firsthand experience in
Turkey with the intelligence organization?
Mr. Ege. That is right.
Wlien I was in Turkey as an intelligence officer conducting opera-
tions against German3% not against Turkey — I make accent on that,
my job in Turkey was only one job, to organize military intelligence
against Germans from the neutral territory of Turkey, and nothing
more.
So I was interested to get some Yugoslav general staff officers who
were in some British camps in Iraq or Syria. It was necessary to get
them and to send them to Moscow in order after that short-range rei^
to send them to Marshal Tito's organization, because at that time m
Yugoslavia there were various groups of Mikhailovich, Tito, and
supporters of King Paul.
So, according to that top-secret document issued by the Soviet Gov-
ernment and party, I had to inform Vinogradov on that operation.
Vinogradov told me that it had nothing to do with your military
intelligence, I will do it directly with the Government. He sent his
cipher to Soviet Government in Moscow. I mean to the Kremlin, and
to ireneral staif officers.
The Yugoslavs were taken from the camps in Iraq and sent to Mos-
cow, and they never come to the military intelligence department.
The)' were taken care of in INIoscow by the high Government officials
representing NKVD, and after a short training they were sent back
to Yugoslavia. That is a good demonstration how that order worked.
More than that, in Turkey, while I was over there, Vinogi-adov was
personally engaged in political espionage. I was told by Vinogradov,
INTERLOCKING SUBVERSION IN GOVERNMENT 1055
almost an order, to try to enlist some very well-known members of
Turkish Parliament to Russian intelligence service, to any service, to
NKVD, to military.
Mr. JMoRRis. You were ordered to enlist them ?
Mr. Ege. To try to enlist them. Of course, enlistment or recruit-
ment does not happen in intelligence service in 2 clays. You have to
approach a person, to study his background, his weak points, strong
points, and use those points.
Mr. Morris. So it was your job, I mean the Ambassador, Mr. Vino-
gradov, directed you to enlist members of the Turkish Parliament
into some of your own intelligence agencies ?
Mr. Ege. That is right.
I pointed out to Vinogradov that Turks would never serve the Rus-
sians and especially members of the Turkish Parliament. I tried to
persuade him that his plan was just ridiculous and dangerous. 1
talked to him, if he is going to gain friends among Turks, the best
way is to act as British and American Governments acted.
I pointed out to him if he is going to do that friendship it is better
to invite Turkish analysts and British newspapermen, to take them
to the battlefronts to show how things are over there, to show Soviet
people, and to improve trade between Turkey and Soviet Union, giving
more to Turks petroleum and paper.
In order not to stay in verbal argument with Vinogradov I wrote
that report to the military intelligence department. Then I talked
to Vinogradov. ^'STien he was insisting I refused to do it because I
was, myself, and I am Turkish and Turks are not going to work
against the interests of Turkey.
So on that basis my friendship with Vinogradov was a little dark-
ened at that time.
Mr. Morris. Mav I get to the American here. Was that order
issued to the American Ambassador at that time ; the order of Febru-
ary or March of 19 il?
Mr. Ege. In that top order was written names of Dekanozov, who
was Ambassador to Grermany; Oumansky, Ambassador to United
States ; and Vinogradov was Ambassador to Turkey.
Mr. Morris. So Oumansky actually received that order?
Mr. Ege. I am sure.
Mr. Morris. You read the name of Oumansky in the order ?
Mr. Ege. That is right. That order was given to us in order in
our intelligence activities to keep to that order.
Mr. Morris. Now, Mr. Chairman, I would like to read from the
Security Memorandum certain activities of the Soviet Embassy offi-
cials in Washington to show how, as a supplement of the testimony
of this witness here today, the Communist organization here in the
United States did, in fact, operate.
The Chairman. Proceed.
Mr. Morris (reading) :
A highly conadential source of complete reliability furnished information that
on April 10, 1943, Nelson was visited at his home, then in Oakland, Calif., by
Vassili Zubilin, a secretary of the Soviet Embassy, Washington, D. C, who has
been definitely indicated by investigation by the Federal Bureau of Investigation
to have been the head of NKVD activity in the United States from 1942 until his
recall to the Soviet Union in August 1944. According to a confidential and
reliable source, Zubilin's cover name was "Cooper."
1056 INTERLOCKING SUBVERSION IN GOVERNMENT
Vassili Mikhailovich Zubilin, with aliases, V. Zarubin, Vassili Luchenko, and
Cooper, was boru January 22, 1900, in Moscow, according to the protocol form
filed with the State Department by the Soviet Embassy.
In January 1942 he was appointed third secretary of the Embassy of the
U. S. S. R. in Washington, D. C. He was subsequently raised in grade to
second secretary. He was finally recalled to the Soviet Union and departed
August 27, 1944. While in the United States, he was accompanied by his wife,
Elizabeta Yurevna Zubilin and his 12-year-old son.
At that point we have deleted the names because we have not had
an opportunity to treat with each individual case.
Gregori Markovich Kheifetz, whose cover name was Mr. Brown was, until his
departure from San Francisco for the Soviet Union, July 6. 1944, the vice consul
at the Soviet consulate, San Francisco. According to the protocol form filed
by the Soviet Embassy with the Department of State, Kheifetz was born in
Moscow, May 15, 1899.
Reportedly, from this protocol form, Kheifetz had served as vice president
of the Society for Cultural Relations with Foreign Countries, VOKS, from
1937 to 1941, when he arrived in the United States.
I wonder if you will tell us what VOKS was or the Society for
Cultural Relations with Foreign Countries?
Mr. EcxE. VOKS means in Russian "Vsesouznoe obshestvo Kultnr-
noy suyaze, szagranitsey." That orrranization is established by the
Soviet Government in order to promote cultural relations with the
foreign countries and it does it.
Of course, doing so it makes Communist propaganda. And to in-
dicate, that organization operating in foreign countries does its best
to find friends of Soviet Union, the people who for some reasons like
Soviet Russia but it does not state on this.
These sections for agent operations are using it as they are using
foreign office or foreign trade or Tass and that was a' very good
place to put agents from first section, second section, third section,
and fourth section.
The fourth section did not care too much because people here
are not engineers or technicians and have no value for technical in-
telligence, but that is a very good place for the third section, for the
second section, for the first section, and as far as I know from my
experience in Moscow VOKS was widely used by the intelligence,
military intelligence, to put the persons who have been discovered.
Mr. AloRRis. The witness has just testified that VOKS, this organi-
zation VOKS, was an instrument for Soviet intelligence agents."
Now in connection with some of the front organizations that this
committee has from time to time encountered, we have determined
that some of these front organizations in the United States are ac-
tually subsidiaries of VOKS about which the witness has just testi-
fied. I submit that that testimony he just gave could be related to
the work of several of these Communist-front organizations who have
been identified in our record as subsidiaries of VOKS.
I have just three more paragraphs I would like to read here :
According to the information furnished to a repi-esentative of this Bureau
and to the Royal Canadian Mounted Police by Igor Guzenko, as set out else-
where in this memorandum, the headquarters of Red army intelligence in
Moscow issued instructions after the use of the atomic bomb on Hiroshima
and on Nagasaki, and in fact subsequent to the actual surrender of Japan,
that the discovery of all technical phases of the construction of the atomic
bomb was the No. 1 espionage project for the Soviets.
Under these instructions it would not be likely that Soviet espionage in this
country would decrease. According to Guzenko. the complete data was to be
supplied to Moscow regarding the atomic bomb by the end of December 1945.
INTERLOCKING SUBVERSION IN GOVERNMENT 1057
As far as Red army intelliirence activity in the United States is concerned,
only tliree persons previously identified in this memorandum as engaged in
espionage activity are still connected with the official representation of the
Soviets in the United States. These three are Gen. Ilia Saraev, military
attach^, Soviet Embassy, Washington, D. C. —
Did you know Mr. Saraev ?
Mr. Ege. I did not.
]VIr. Morris (reading) :
Pavel Mikhailov, acting Soviet consul general, New York City —
Yon did know him ?
Mr. Ege. I did.
Mr. Morris (reading) :
Col. A. I. Servin, tank department, Soviet Government Purchasing Com-
mission^—
Did you know him?
Mr. Ege. I did not.
Mr. Morris (reading) :
Washington, D. C.
I think, Mr. Chairman, the rest of the memorandum will be in the
record and will speak for itself.
Now, Mr. Ege, you told us in executive session that there was an
American agent who was a United States Reserve Anny officer that
you encountered in your experiences?
Mr. Ege. That is\ight.
Mr. Morris. Will you tell us as fully as you possibly can from your
own experience with this man as many identifying and individuating
notes as you possibly can.
Mr. Ege. Well, that Reserve officer of the American Army was in
the lOoO's Avorking somewhere in China and as far as I recollect he
came to China as a civilian, then entered the Chinese Army.
Mr. Morris. Entered the Chinese Army?
Mr. Ege. That is right.
Mr. ]\IoRRis. Even though he was a United States Reserve officer?
Mr. Ege. I know that he was a Reserve officer from the statement
given to me by my chief of subsection, by Polyakova.
Somewhere in the late years of 1930, perhaps in 1935 or 1936 or
1937, he was recruited for Soviet military intelligence. In 1941 he
was living in Moscow, acting as an Intourist guide and writing some
articles for the Moscow news in English.
He was listed as personnel to the fifth section which I listed yester-
day, terroristic and other acts. I don't recall his name. He was about
30 or 28 years at that time, married.
Mr. Morris. That is in 1941 ?
Mr. Ege. That is right ; married, had a child, and there was a plan
to send him back to the United States for subversive activities. When
I was sent to Germany he was still in Moscow.
I have nothing to tell about him except that information because
I don't read more about him. He was very conservative and being
a member of the fifth section he had no right to tell about his where-
abouts to me.
I know him because I was taking from him English lessons 2
months — 1 month I took lessons, about 8 lessons.
Mr. Morris. That is all the identification you can give this com-
mittee about this particular individual?
1058 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Ege. That is right.
Mr. Morris. Do you know where he lived in the Soviet Union when
he was living in Moscow?
Mr. Ege. Yes ; he was living on Gorki Street, which is Fifth Avenue
for Moscow as Fifth Avenue for New York. His house was near the
restaurant Aragvi. Going from the Red Square to the Mossovet,
which is the ]\Ioscow Council, on the right side just opposite a little
cafeteria, third floor. I don't remember the number of his house.
He was known anyway to the American Ambassador because he
was having relations as Intourist guide with the foreigners, especially
American and British.
The Chairman. Who was the American Ambassador at that time?
Mr. Ege. I don't know.
The Chairman. We can find out. He made no reference when you
were taking your English lessons about where he came from in this
country, what State or what section ?
Mr. Ege. He did not make reference but he knew very well New
York because he was talking to me what was uptown and downtown
and how to get to the Metro ; I mean subways, and how you have to
address police, and how in New York it is difficult to get around be-
cause there is a conglomeration of many nations and some persons
speak English poorly.
He was talking in a detailed way about New York, so I get the idea
he knew New York.
The Chairman. You say the American Ambassador knew this
gentleman ?
Mr. Ege. I can't say, because I don't know who was the American
Ambassador, but he was known to the American Ambassador.
Mr. Morris. He was not known as a member of the fifth section ?
Mr. Ege. No.
Mr. Morris. You told us in executive session about a seven-brothers
project. Will you tell us to the best of your recollection the nature of
and the persons involved in this seven-brothers operation ?
Mr. Ege. That was one of the projects which is a routine one in
order to send legal Soviet citizens abroad and to use them in the
future for intelligence activities.
Because all these cover organizations, as I reported today and yes-
terday, as Tass, Foreign Office, Amtorg, Voks, and so on, were not
enough, it was necessary to use any possible other channel and one of
those channels was the educational field.
It was the plan to send seven young intelligence officers, who were
trained in a special intelligence school in Moscow, to American col-
leges and universities to be trained over there as engineers and so on.
These persons being graduated from intelligence school and being
intelligence officers did change their real names by cover names and
there was written memoranda by the Commissar of Education to
American Embassy asking to grant visas to enter the United States
for the reason of entering United States colleges.
These persons were going to be used, while being in these institutions
or afterward, according to the situation, as intelligence agents of mili-
tary intelligence.
When I was going to Germany the question of getting the visas
still was not finished ; and whether they were sent or not I have no idea.
INTERLOCKING SUBVERSION IN GOVERNMENT 1059
Mr. Morris. In other words you know that the project was under-
taken.
Mr. Ege. That is right.
Mr. Morris. Did you see any of the papers involved in this project ?
Mr. Ege. I did because that was the fourth section.
Mr. Morris. In other words, it was a project of the fourth section?
Mr. Ege. That is right.
Mr. Morris. This plan that had been drawn up was directly under
your scrutiny?
Mr. Ege. That is right. As far as that project involved adminis-
trative or Commissariat of Education and so on, that was discussed in
the central committee party and it was blessed by Malenkov who was
first secretary of Central Committee of Communist Party at that
time.
Mr. Morris. What had he done earlier by the way ? Wliat was his
earlier record?
Mr. Ege. I knew Malenkov not personally ; I never met him in per-
son. I was not his level. I was just a little intelligence officer. He
was up in the party. I was a member of the party. Malenkov was
first secretary and he had been the right hand of Stalin, he had a
great role in various decisions.
As first secretary of the party — as you remember that happened
after the big purges, he was powerful and he played a role in the
intelligence, he was in person interested with the organization and
with the scope and with the expansion of the military intelligence of
NKVD and of navy.
I want to put here in the record, Mr. Morris, in connection with the
Guzenko statement, I am sure that after war they expanded the organ-
ization and the best record for it is a statement by Malenkov when he
addressed the last party congress in Moscow in 1952. And if news-
papermen would recollect, in his address he pointed out that the party
liad done its best to expand and strengthen the Russian intelligence
apparatus.
Sir. Morris. What year was that?
Mr. Ege. In 1952, the last party congress of the Soviet Union Com-
munist Party.
Mr. Morris. He stated at that time, this general we are talking
about, Malenkov, was the one that said at that time that the Soviet
intelligence activities had been expanded?
Mr. Ege. That is right, and the political report was the most im-
portant report in the party congress.
Mr. Morris. In connection with the 7-brothers operation, you dealt
with some of these 7 agents yourself?
Mr. Ege. I saw all these seven persons.
Mr. Morris. But you cannot tell us their names?
Mr. Ege. That is right because too many years elapsed and I don't
want to mix up somebody who is innocent of that business.
Mr. Morris. But you do know that the Soviet Minister of Educa-
tion did ask for the seven visas at one time?
Mr. Ege. I know it exactly because that memorandum was prepared
by the fourth section of intelligence, and to that memorandum was at-
tached a top-secret memorandum; that that was according to the
instruction of Malenkov in order that the Minister of Education
would sign it. He would not sign it without that.
1060 INTERLOCKING SUBVERSION IN GOVERNMENT
Mr. Morris. And the year was what ?
Mr. Ege. That was again March or April of 1941.
Mr. Morris. Now that memorandum was transmitted to the Amer-
ican Ambassador in Moscow; is that right?
Mr. Ege. It was at first transmitted to the Commissariat of Educa-
tion and I understood that after the Commissariat of Education signed
it it was transmitted to the American Embassy in Moscow.
The Chairman. I will ask the staff to do some research on that
particular memorandum.
Mr. Morris. This memorandum did mention a group of seven
people ?
Mr. Ege. That is right. It was one memorandum including these
seven men.
Mr. Morris. That was during the Hitler-Stalin Pact, was it not ?
Mr. Ege. That is right. And seven brothers is a code name. It
does not mean that these are brothers.
Mr. Morris. Did you know a Soviet agent named Tirron who some-
times used the name Tirov ?
Mr. Ege. You mean Tairov?
Mr. Morris. Who was he?
Mr. Ege. He was deputy chief for Soviet military intelligence in
1929, 1930. I would not say that he was agent because according to
the legal point, of course, he was a Soviet agent, he was a spy, but
still in Soviet Russia they do change words in various ways.
For instance, a Soviet officer is not called an agent because he is
directing agent operations. He is an officer, he gets orders. An agent
is some person who works in that apparatus for money, for ideological
reasons and so on, but an officer is still an officer.
For instance, I don't consider myself an agent as it was written
in some newsjDapers. I was military intelligence officer. I was ordered
to do it and wdien I say that it does not fit my honor, I broke with
the Soviets. Now Tairov, he was a general and he was deputy chief
for Berzin who was chief of Soviet military intelligence in the 1930's.
At the same time Tairov was right hand of Stalin and he was in
Russian military intelligence to supervise Berzin wdio was a chief.
When trouble came in the Far East with Blucher, who was com-
mander in chief of the Far Eastern front, and when Stalin suspected
Bluclier, he sent his emissary, Tairov, to Blucher as his Commissar.
So Tairov used to be put always in troubled places in order to re-
port to Stalin about the responsible Soviet commanders or about chiefs
of various intelligence departments.
I think he was purged himself after good service to Stalin, anyway.
Mr. Morris. Now there was an agent named, a fourth-section officer
named Faraday.
Mr. Ege. Faradav is a code name. He was illegal resident for
fourth section in the United States.
Mr. Morris. This is your own section?
Mr. Ege. That is right.
Mr. Morris. Faraday is a code name for this officer who was oper-
ating in the United States?
Mr. Ege. That is right. I can give his background.
Mr. MoRius. Would you, please?
Mr. Ege. He came to tlie United States from Czarist Russia some-
where around 1906 or 1907, after the first Russian revolution in 1905.
INTERLOCKING SUBVERSION IN GOVERNMENT 1061
He was a JeAv and just being persecuted in Czarist Russia he was
forced to flee to the United States where he found freedom and that
country adopted him and he became after some years a naturalized
American citizen.
His age was in 1941 about 56 or 58. He was an older person. He
was born somewhere in tlie Ukraine, perhaps Kiev or Kharkov. I
don't recollect exactly.
Then sometime in the lOoO'S he was recruited by the Soviet intelli-
gence personnel working under cover of Amtorg and he became illegal
resident.
He was running his business under cover. He had a shop of electric
apiDliances in New York. He was very convenient to use persons
illegal ; he would legalize him and finish him and set him as a separate
network afterward. I don't recall his real name.
Mr. MoREis. If in executive session this committee were to give you
certain names of possibilities would you conceivably recognize his
right name?
Mr. Ege. I do not think so.
Mr. Morris. You do know his cover name was Faraday?
Mr. Ege. It was not cover name ; it was a code name which was used
on secret correspondence.
The Russian service used a code name in secret correspondence in
order not to reveal him. So usually an intelligence person has three
names. One is the real name ; one is cover name ; one is code name.
For instance, my code name was Arman. That was used only in
secret corresj3ondence in order if somebody would get it, he w'ould
find Arman.
Mr. Morris. You do know this man operated as a subordinate of
yourself, a subordinate of the fourth section operating in the United
States at the time you were head of the fourth section ?
Mr. Ege. That is right. I know he was for some time in contact
with Adams.
Mr. Morris. You do know he was in contact with Adams?
Mr. Ege. That is right. Perhaps two times with Adams in 1941,
in the winter.
INIr. ]MoRRis. In the winter of 1941 you know he was in contact with
Adams?
Mr. Ege. That is right.
Mr. Morris. That is all the individuating notes you can give us on
(he agent operating in the United States in your section?
Mr. Ege. That is right.
Mr. Morris. Who is Mr. Arshansky?
Mr. Ege. He was my classmate. He was not a classmate, but he
was a graduate 1 year after me from the Military Electro-Technical
College in Leningrad with the rank of captain or engineer of third
rank.
After that he was appointed or attached to the military intelligence
department where he was graduated from the secret intelligence corps
and then he was planned to be sent to the United States illegally.
I was talking yesterday that there are illegal networks and illegal
agents. I was talking that by illegal network or agent Russian mili-
tary intelligence understands foreigners working for Soviet intelli-
gence. But there were still Soviet citizens who were sent illegally
y
1062 INTERLOCKING SUBVERSION IN GOVERNMENT
to some foreign country, having in their hands these falsely procured
foreign passports.
So Arshansky was ordered to prepare his — as the Russians call
legend — which is cover story, false story. He was sent to Tallin,
Estonia, and Riga, Latvia, to find out some past history, life of some-
body who was deceased or was recently arrested, just to replace him
by Arshansky.
Arshansky had to learn everything about that imaginary person,
when he was born in Riga, Latvia, from what school he was graduated,
and he was going to learn the language in order to ascertain he was
from this country.
And the sixth section had orders from the fourth section to pre-
pare or be ready to prepare him false documents. With that false
document and prepared life history and false life history he had
to be sent to the United States and in some future to become Soviet
agent in this country.
That is all about Arshansky.
Mr. Morris. You mentioned from time to time the fifth section,
the terroristic section.
Mr. Ege. Yes.
Mr. Morris. I think you told us in executive session of an attempt
that was made on the life of Von Papen, which you know about
from your own experience ?
Mr. Ege. Yes.
Mr. Morris. Will you relate that episode to the best of your ability ?
Mr. Ege. I think it had nothing to do with the fifth section of the
military intelligence department. Why I think, because I was my-
self military intelligence officer. I knew the military attache, I knew
other military residents. I am sure that military intelligence de-
partment of the general staff had no role in that business.
I don't know exactly if it was organized by the Soviet Union. I
know that two persons arrested by Turkish authorities and put after
trial into jail, that is Pavlov and Kornilov, and Pavlov was working
under title of press attache and he never did something with press
in his life. Kornilov was working undercover as clerk in the Soviet
Trading Organization.
Mr. Morris. Pavlov was acting as a press attache at the Soviet
consulate ?
Mr. Ege. In Istanbul.
Mr. Morris. The other gentleman was working ?
Mr. Ege. The other man, Kornilov, was working as clerk in the
Soviet Foreign Trade Organization in Istanbul which is equal of
Amtorg. Now these two persons I know exactly were working as
agents for the NKVD apparatus.
Mr. Morris. They were working for the NKVD rather than the
Soviet military intelligence ?
Mr. Ege. I know it exactly and that apparatus was hated by a per-
son whose name was Naumov and who was also press attache and
had nothing to do with the press; and his deputy was commercial
attache of Soviet Embassy, Baklanov, who was right hand of Pavlov
and chief resident of NKVD.
Why I know now that he was chief resident of NKVD, it was told
openly before coming to Turkey, according to Naumov, which he
INTERLOCKING SUBVERSION IN GOVERNMENT 1063
delates in the presence of consul general and deputy for the military
attache ; he told that he was accepted by Stalin and was given right
directive to expand intelligence and activities of NKVD in Turkey
because the Soviets had very great interest at that time in the Middle
East.
Now, Pavlov was also the right hand of Naumov and was working
in Istanbul in clandestine operations. He had contact with the per-
son who was killed during that assassination, whose name if I am
not mistaken was Abburachman, wdio was a Turkish barber.
Mr. Morris. Will you tell us for the record what the attempted
assassination was?
Mr. Ege. One fine day in Ankara, I don't recollect the date, when
Von Papen
Mr. Morris. He was German Ambassador to Turkey ?
Mr. Ege. Yes. He used always to take fresh air and one day he
was coming back to his house with his wife. He heard a tremendous
commotion near him and he went down. He escaped by just a little
scratch. That was a bomb thrown to him. Some persons were ar-
rested in connection with this one. These persons were Pavlov and
Kornilov.
Mr. Morris. Whom you knew to be XKTS^D agents ?
Mr. Ege. Exactly. I know the arrest of Pavlov and Kornilov by
Turkish authorities gave a big headache for the Russian Embassy.
Everybody was excited and afraid.
At first they did not want to deliver to Turkey authorities this
Pavlov. Pavlov was arrested on the train. He was running to
Russia under escort of diplomatic courier armed with revolvers.
Turkish police arrested him while he was just coming from Ankara.
Mr. Morris. After that episode he was escaping to the Soviet
Union ; he had an armed Soviet diplomatic courier with him ?
Mr. Ege. Yes. Pavlov was running. He could not run to the
East, so he was running to Aeski Shehir, and from Aeski Shehir to
Kiseri ; and he could not get to Kiseri and he came back to Istanbul,
changing trains.
He took refuge under the roof of the consulate and he told that
he is ill ; he is not going to see somebody and Naumov was trying to
keep him away from eveiy person in the Soviet Embassy.
When the Turks made request to deliver him, there was special
conference at the Soviet consulate in Istanbul. In that conference I
took part because I was one of the residents working against Gennany.
In that conference there w^ere present Akimov, who was consul gen-
eral ; and his real name is Tageev, and his rank was Russia commissar
of the regiment.
He was working as consul general of Soviet Russia and that was
his cover. His real business was, he was assistant to military attache
for the espionage activities against Turkey. He was long-standing-
intelligence officer working before in Iran.
There was present military attache of Soviet Russia, Colonel
Lyachatvrov. There was present Naumov, chief resident of NKVD,
and I was present.
The question under discussion was to give to Turkey Pavlov or not.
Naumov was putting the question to fight the Turks from Russian
Embassy in Istanbul, put machine guns and bombs. Well, we said it
1064 INTERLOCKING SUBVERSION IN GOVERNMENT
was ridiculous because you can't fight Turks in Istanbul; they will
finish you. That is, anyway, suspicious.
Tageev proposed to send to Moscow a cable requesting that Soviet
Russia would arrest Turkish consulate in Batumi as an answer to
that Pavlov request. We, being consulted in that question, told
just wait and await answer of Moscow and report how the situation
is without any suggestion, because that was not business of consulate.
The Embassy was business of Moscow.
In the evening there was a telegram from Moscow to deliver Pavlov
in Turkish han^s. Pavlov was arrested and tried in court. That
is all.
Mr. MoRKis. That is all there is on it ?
Now, with respect to the various adversaries or enemies of the
Soviet Union, you know that Germany was an enemy of the Soviet
Union. You also know that Turkey was. Of all the foreign coun-
tries, that is foreign to the Soviet Union, what country occupied
the No. 1 place of hostility ?
Mr. Ege. We were trained in Soviet policies and party line and,
according to party line, always the United States of America was
enemy No. 1. And their reason for it was that if Soviet Russia is a
totalitarian state, the United States is a free country and these are
opposite countries in the ideological field, I mean.
The United States of America is for freedom, for free enterprise,
for the dignity of individual, and for principles of western democ-
racy. Over there we have the Soviet Union, which is the most totali-
tarian state where the individual is not free. He is a slave of the state.
Mr. Morris. You said in all your training you were told the United
States of America was the No. 1 enemy.
Would you give us concrete details about that? Was it taught to
you in your staff colleges?
Mr. Ege. It was taught us in general staff college. It was told us
during the political training in the intelligence department. It was
told to us always during my life.
JSIr. Morris. It is a well-established fact and long since recognized ?
Mr. Ege. Tactically they did change it but it was tactical as tempo-
rary means. But in principle the United States was enemy No. 1.
I can give you an example.
For instance, Germany was potential enemy; then it became real
enemy of Soviet Union. Soviet Russia knew it, but the Russians
were impressed by German military policy, by militant Nazi Party
methods, and there was competition, but that competition was be-
tween two totalitarian states. It was not competition and not enemy
in principle.
When I was being sent as vice president of Tass in Germany, di-
rector of Tass, Chavinson, told openly to me : '"Look, here you are
going as correspondent of Tass, and you are an intelligence officer
and you have your owii business, but you are still correspondent of
Tass. So, as correspondent of Tass your first duty would be to learn
by any means how Nazi Party is organized; how they keep that
military discipline.*'
I asked why. He told me: '"Don't be naive. The Central Com-
mittee Party likes it. We have to accept something from Germans, to
learn it."
INTERLOCKING SUBVERSION IN GOVERNMENT 1065
He told that for public opinion for common people, we were talking
that the Germans are our enemies. But the Central Committee is
interested in real things.
More than that, during the war I was in Turkey. I say that the
Americans, British, French, Soviet Army were fighting the Germans.
That was fine and excellent job. Being a human being and being just,
having in mind to do my best in that fight, I tried to do my best in
my friendship w^ith the foreign news})apermen, but you have to be
over there in order to have a picture of it.
For instance, some Mr. Smith from the United States press, I am
talking just names, not real; or Mr. Brown from Associated Press
or United Press was coming to the Soviet Ambassador to visit us
as friends. Immediately the telephone: "Downstairs is a foreign
.Vmerican correspondent, perhaps spy. Find out, of course, is he
^py or not. If he is a spy, for what agency he is working."
Third, "Dine and wine him. Then try to impose your policy, your
doctrine ; approach him. Find his background and, finally, in some
future try to use him."
That was double-face play always with every correspondent, every
press attache; always ringing telephones, instructions, and always
excitement.
More than that, suppose there was a ball or reception in some diplo-
matic corps or quarter or embassy — for instance, Turks were giving
diplomatic reception for the diplomats of allies.
Everybody who is taking part in that ball, reception, is invited to
the Soviet Embassy and he is instructed who he will see at that recep-
tion ; how he will see him ; how he is going to bow his head — how many
inches down or up — how he had to smile, how big or just a little; how
to speak with him, in a sincere way or cold way ; and always try to find
out something that is secret ; and how to kiss his madame's hand.
For 2 days, 3 days that instruction is given — then you go. You are
not free because when you go, after you there are representatives of
NKVD and they are looking upon you, how you act as an agent in
that business. Do you do as you were instructed or not. If you do
not, that is written in your file.
That was some dirty play and it was so shameful that many of the
persons even belonging to the Soviet Embassy resented it. And news-
papermen here, if they were at that time at some reception, perhaps
could see that most of these fellows were just standing on the corners
because they were afraid and still they had to act.
More than that, that was a fine fight against Nazis ; everybody hoped
that that would be changed. We are a little brave to tell that Ameri-
cans are fighting, British are fighting, that they are doing their best ;
and immediately that Naumov would come, or military attache, "Tell
these rascals the United States Government or Americans, they are
not doing, they are just giving money for it"; or English, and many
unprintable words which I cannot tell here. It does not fit.
Then when we finish with Germans, the turn would come for other
capitalistic countries. Perhaps it would be more logical during the
times when Stalingrad was under question, when Soviet Government
flew from Moscow to Kubishev and where the Soviet Union's question
of existence was at stake. They had to have a mind not to think about
this military intelligence operations against the United States, but
they were taking their gifts to expand it.
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Even in Turkey all this intelligence personnel had directives, that
if it is possible to recruit somebody to send to the United States from
Turkey, report it to Moscow, and do it.
For instance, there was a Polish engineer. He was working in a
Turkish military factory. I don't recall his name. He was agent
for the second section of the military intelligence.
There was his wife. She was going to the United States. She was
a recruit and she was sent to work against the United States from Iran.
Over the oceans there were hundreds of tanks, food, shoes, arma-
inents coming; and from Turkey and from various countries agents
were coming to the United States.
The Chairman. From all this testimony that you have given today
and yesterday I would like to ask you, Mr. Ege, whether or not you
think that this Government's recognition of Russia has worked to the
jidvantage of Russia?
Mr. Ege. I think it worked to the advantage of Russia.
The Chaikvian. Also, I would like to ask you if you have told us
everything that you know about the Institute of Pacific Relations in
^'our tevStimony yesterday ?
Mr. Ege. I told everything in yesterday's testimony.
The Chairman. This committee wants to thank you for appearing
before us. I think you have told us that there was some danger in
your appearing publicly and telling us this story of intrigue that you
have unfolded before this committee in the last 2 days. We want to
compliment you on your courage.
We want to thank you for the contribution you have made to this
committee and we appreciate it very, very much.
Mr. Ege. Thank you, Mr. Chairman.
Mr. Morris. Mr. Chairman, just one question.
Inasmuch as the witness here today did work for Amtorg, I would
like to ask you with a little more particularity to what extent you Imew
that Amtorg operated as a cover for Soviet intelligence?
I don't think we addressed ourselves expressly to take in view the
fact that an earlier witness did work for Amtorg for 10 years and
then the Soviet Purchasing Commission. I think you heard his testi-
mony ; did you not ?
Mr. Ege. I did.
Mr. Morris. Would vou answer that question ?
Mr. Ege. Well, from the date Amtorg was established, Amtorg
was in a more expanded way used by the military apparatus.
As for the fourth section I know that it was used by Korovin, by
Vartanyan, by military intelligence, and Korovin and Vartanyan
were persons worlring as chief engineers for Amtorg. ^
There were numbers of other persons who were engineers and Soviet
officials and working for intelligence. I am not giving names because
I don't recall them and I don't just relate facts which I don't know
exactly. But I am sure they were using it and, not only the fourth
section ; the sixth section was using it.
Mr. Morris. You know for a fact, according to your own expe-
rience, the fourth section was using it. You know from the man, the
head of the sixth section, that they were using it?
Mr. Ege. I know that third section was using it, too.
The Chairman. You have no reason to doubt that NKVD, Navy,
and others were using it?
INTERLOCKING SUBVERSION IN GOVERNMENT 1067
Mr. Ege. I am sure of it, categorically sure, because there is always
fight between NKVD and military intelligence and Navy to get
chances to occupy vacancies in Amtorg.
]\Iore than that, Foreign Trade Commissar Mikoyan, who was a
i member of the Politburo and I think he is still a member of the
Presidium, was aware of that fact.
] Mr. Morris. You used the words "cutout" in your testimony.
I Mr. Ege. Yes.
Mr. Morris. What is your meaning of "cutout" so that we will
understand it completely?
Mr. Ege. The person who is having contact between legal and ille-
gal organizations.
The Chairmax. Any further questions?
If not, again I want to thank you for appearing.
We will stand adjourned.
(Whereupon, the hearing was adjourned to reconvene subject to
call of the Chair.)
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