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Full text of "Interlocking subversion in Government Departments. Hearing 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, second session,first session]"

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mTERLOCKING SUBVERSION IN 
GOVERNMENT DEPARTMENTS 



HEARINGS 

.  ( ' . 

BEFOkE 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 

FIKST SESSION 
ON 

INTERLOCKING SUBVERSION IN GOVERNMENT 
DEPARTMENTS 

NOVEMBER 12, 17, 18, 23, AND DECEMBER 2, 3, AND 16, 1953 



PART 16 



Printed for the use of the Committee on the Judiciary 




UNITED STATES 
GOVERXMENT PRINTING OFFICE 
32918" WASHINGTON : 1934? 



Coston Public Library 
Superintendent of Documents 

MAY 2 4 1954 



-4 



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, Utl-b JAMES O. EASTLAND, Mississippi 

ROBERT C. HENDRICK80N, New Jersey ESTES KEFAUVER, Tennessee 

EVERETT McKIXLEY 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 Admini.stration 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 OLIN D. JOHNSTON. South Carolina 

JOHN MARSHALL BUTLER, Maryland JOHN L. McCLELLAN, Arkansas 

Robert Mohri.s, Chief Coungel 
Benjamin Mandel, Director of Research 

II 



CONTENTS 



Testimony of — 

Brownell, Hon. Herbert, Jr., Attorney General 

of the United States 

Caudle, Theron Lamar 

Hoover, J. Ildgar, Director, Federal Bureau of 

Investigation 

Murphy, Raymond 

UUmann, William Ludwig 

Vaughn, Harry Hawkins 



Date 



Nov. 17, 1953 
Nov. 12, 1953 

Nov. 17, 1953 
Dec. 2, 1953 
Dec. 2, 1953 
Nov. 12, 1953 



Page 



1110-1141 
1074-1080 

1142-1154 
1180-1183 
1184-1217 
1081-1085 



III 



INTEELOCKING SUBVERSION IN GOVERNMENT 

DEPARTMENTS 



THURSDAY, NOVEMBER 12, 1953 

United States Senate, Subcommittee To 

Investigate the Administration or the 
Internal Security Act and Other Internal 
Security Laws or the Committee on the Judiciary, 

"W (ishington^ D. C. 

The subcommittee met at 2 : 30 p. m., pursuant to call, in room 318, 
Senate Office Buildino:, Senator William E. Jenner (chairman of the 
sulicommittee) presiding. 

Present : Senators Jenner and Hendrickson. 

Present also : Robert Morris, chief counsel ; J. G. Sourwine, com- 
mittee counsel; Benjamin Mandel, research director; and Robert Mc- 
Alanus and James Walter, professional staff members. 

The Chairman. The committee will come to order. 

I want to state for our record that as a corollary of our July 30, 1953, 
report, the Senate Internal Security Subcommittee has been trying to 
determine how it was that nine important officials of Government 
obtained advances and promotions in the face of derogatory security 
information. 

Evidence before the subcommittee showed clearly that all of these 
men were implicated in the Communist underground organization 
directed by Soviet superiors. Despite this fact, these individuals 
were not only able to stay in the Government employment and to have 
access to vital Government secrets, but also to gain promotions to even 
more important posts in the face of impressive derogatory security 
information. 

These nine were not the only persons involved, but the subcom- 
mittee felt that all of these cases were important and conclusive. Not 
necessarily the most important of these was Harry Dexter White. 

In the course of its investigation, the subcommittee was informed 
on October 13 of the existence of a particularly derogator}^ security 
report on White. On October 14, at staff level, it asked the Justice 
Department for a copy of this report. It was a routine inquiry. 
The subcommittee has not yet received a copy of this report, but has 
been assured by the Department of Justice that we will receive at 
least some kind of information which will reveal its general nature, 
and yet will be consistent with discreet disclosure of security infor- 
mation. 

In its handling of the November 1945 security memorandum, the 
Internal Security Subcommitte has released portions thereof after 
first ascertaining with utmost care the reliability of the facts recited 
therein. It also has made a practice of calling as witnesses those 
named before releasing the security^ information. 

1069 



1070 INTERLOCKING SUBVERSION IN GOVERNMENT 

The subcommittee shall continue to proceed with this inquiry in 
the same careful fashion which has characterized its handling of the 
earlier report and which has been its practice throughout the past 
3 years. 

Mr. Morris. Mr. Chairman, may I give a few of the facts that form 
the background for this hearing today ? 

The Chairman. Proceed. 

Mr. Morris. On April 14, 1953, while Harold Glasser, who is 1 of 
the 9 cases, was a witness before this committee, the Internal Security 
Subcommittee introduced into the record a portion of the November 
1945 memorandum. This portion read as follows : 

N. Gregory Silvermaster, with aliases. This case first came to the attention 
of the Bureau on November 8, 1945, when Elizabeth Bentley, an ofiicial of the 
United States Service & Shipping, Inc., New York City, came in to the New 
York office of the Bureau and stated for the past 11 years she had been actively 
engaged in Communist activity and Soviet espionage. She stated that prior to 
1938 she had been an official in various capacities cf the Communist Party in 
New York City. In 1938 she began making contacts with Jacob Golos, the 
head of World Tourists, Inc., which organization was being used as a cover for 
the Soviet espionage activity. Golos later organized United States Service & 
Shipping, Inc., for the same purpose, in 1941. 

Under Golos' direction until his death in 1043, Bentley stated that she was 
used as a courier and liaison between individuals engaged in espionage for the 
Soviet and Golos. After (iolos' death in November 1943, she continued to act 
as such a courier and liaison under the direction of Earl Browder. 

During the latter part of 1944. at the insistence of Soviet representatives In 
the United States, and with Browder's consent, the various espionage groups 
with which she had been maintaining liaison were turned over directly to Soviet 
agents, only one of whom she has been able to identify. The Soviet representa- 
tive, who has used the cover name "Al," has been identified as Anatoli Gromov, 
First Secretary of the Soviet Embassy, Washington, D. C, who since his arrival 
in the United States on September in, 1944, has been suspected by this Bureau 
to be the successor in NKVD activities of Vassili Zubilin, former Second Secre- 
tary of the Soviet Embassy, who was rec-alled to the Soviet Union in July 1944. 
Zubilin was the reported head of all NKVD activity in North America. 

Bentley has stated that the espionage agents with whom she had been in con- 
tact under Golos' and Browder's direction had been working for the NKVD. 
The espionage groups with which Bentley worked were primarily employees of 
the United States Government staticmed in Washington. D. C. The head of the 
most important group originally run by Golos was N. Gregory Silvermaster, at 
one time an employee of the Department of Labor, and now connected witli the 
United States Treasury Department. Another member of this group, who re- 
sides with Silvermaster, is William L. Ullmann, a major in the United States 
Army Air Forces stationed at the Pentagon Building, who has been responsible 
for the olitaining and photographing of classified information regarding United 
States Government war plans, and also reports of the Federal Bureau of In- 
vestigation, copies of which had been furnished to G-2 of the Army at the 
Pentagon Building. 

Other members of this group include A. George Silverman, a civilian em- 
ployee of the War Department; Harry Dexter White, Assistant Secretary of the 
Treasury in Charge of Monetary Research and Foreign Funds Control; William 
Taylor, also an employee of the Treasury Department ; Lauchlin Currie, ad- 
ministrative assistant to the President ; and other lesser figures. 

The report then goes on to relate other members who were, accord- 
ing to this source of information, members of the Soviet underground 
which was operating in Washington. 

That, I say, Mr. Chairman, was introduced into the record on April 
14, 1953, and as the various witnesses whose names appeared thereon 
were called, they were asked about the evidence that appeared in the 
memorandum. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1071 

The Chairman To complete our record on this important hearing, I 
would like to ask the chief counsel if the record shows the 1945 memo- 
randum? 

]Mr. Morris. The 1945 memorandum, Mr. Chairman, was the one 
that I have just described, and pertinent portions thereof I have read. 

The Chairman. In other w^ords, all that we have released is in the 
record ? 

]\Ir. Morris. Again, Mr. Chairman, 2 weeks ago in New York when 
we had hearings in the United States courthouse at Foley Square in 
connection with the United Nations, we did put into the record ap- 
proximately 8 or 9 further pages of that particular security report. 

The genesis of the present hearing is that on October 13, a staff mem- 
ber of this committee was informed by Mr. Lamar Caudle that there 
was in existence in the files of the Department of Justice — I might 
point out that Lamar Caudle at that time was Chief of the Criminal 
Division of the Attorney General's office — that there was in the files 
of the Attorney General's office a particularly interesting memo- 
randum which indicated rather conclusively that Harry Dexter White, 
1 of the 9 people that the committee was interested in, was engaged in 
Communist activities, and that that might be obtained by our com- 
mittee. 

Accordingly, a staff member of the committee asked the head of the 
Criminal Division, the present head of the Criminal Division of the 
Department of Justice, through his assistant, if we could obtain a copy 
of that report. We have been assured by the Attorney General that we 
will at least have some kind of information about that report, and 
that it will be available to this committee as soon as possible. 

The Chairman. All right. 

Mr. Morris. Mr. Chairman, I would like to point out that there are 
nine people involved in this series of hearings. I think Mr. Mandel 
has here a summary of the jobs that they held after November 1945. 
The significance of the date 1945 is that this was the date of the 
security memorandum which we know Vice President Nixon has told 
us was circulated among high Government officials and the President 
of the United States. 

The Chairman. Mr. Mandel, will you put into the record these nine 
individuals' names referred to by Mr. Morris, and also read the job 
description of their positions? 

Senator Hendrickson. Mr. Chairman, I understand the nine peo- 
ple include Mr. White; is that correct? 

The Chairman. They do. 

Mr. Mandel. Harold Glasser : In the fall of 1945, Mr. Glasser was a 
member of an economic mission to Japan. In 1946, he was a member 
of an economic mission to Germany. As Associate Director and later 
Director of the Division of Monetary Research in the Treasury De- 
partment, Mr. Glasser played a major role in the great financial negoti- 
ations of 1946 and 1947, and in the field of foreign policy, both nation- 
ally and internationally. 

In August 1946 he was an adviser to Mr. Clayton at the fifth session 
of the Council of the United Nations Relief and Rehabilitation Ad- 
ministration. He was adviser to Mr. Snyder at the first annual meeting 
of the Board of Governors of the International Monetary Fund and 
International Bank for Reconstruction and Develoj^ment in Septem- 



1072 INTERLOCKING SUBVERSION IN GOVERNMENT 

ber and October of the same year. Promoted from Associate Director f" 
to Director of the Division of Monetary Research, he was adviser to 
Mr. Chiyton at the sixth session of the Council of the United Nations 
Relief and Rehabilitation Administration in December of 1946. He 
attended the four-power conference in Trieste in January 1947, and in 
March and April of 1947 was special financial consultant on Trieste to 
General Marshall, at the Foreifrn Ministers' meeting in Moscow. 

Both Mr. Snyder and Mr. Acheson addressed favorable letters in 
regard to Mr. Glasser to his new employers. 

Mr. Morris. Mr. Chairman, may I point out at this time again that i 
the significance of that reading was that they were the positions that 
Mr. Glasser held subsequent to the time that he was mentioned in this 
1945 security memorandum which was circulated. 

The Chairman. Proceed, Mr. Mandel. 

Mr. Maxdel. Alger Hiss: In November 1945, Alger Hiss was 
Director of the Office of Special Political Affairs in the State Depart- - 
ment. This was the office that had paramount concern with interna- 
tional organizations, particularly the United Nations. The Office of i 
Special Political Affairs under Hiss' direction until his departure from 
the State Department in January 1947, was of major importance in 
the crucial year of 1946, the formative year of the United Nations. 

In his capacity as Director, and as Secretary to the American Dele- 
gation, he attended the first part of the first session of the General 
Assembly in London in January-March, and the second part in New 
York in the fall of 1946. 

His office prepared the papers, recommended the policies, handled 
all negotiations, both for the United States mission and the United 
Nations. 

Testimony before the Subcommittee on Internal Security also dis- 
closes that Mr. Hiss, contrary to the Secretary of State's direction, 
forwarded a list of names of applicants for positions to the Secretariat 
of the United Nations. An examination of the State Department 
directory further discloses that Mr. Hiss made a sizable number of 
apioointments to top positions in his office during this period. Many of 
these individuals are still in those positions. 

When Mr. Hiss resigned from the Department of State in January 
1947 to become president of the Carnegie Corp., his farewell party 
was attended by Mr. Dean Acheson, who praised him as a model Gov- 
ernment official. 

The Chairman. Mr. Mandel, just a moment. I want to note the 
presence of Congressman Harold Velde, chairman of the House Un- 
American Activities Committee, and several members of his com- 
mittee. 

Gentlemen, we are very glad you are here with us. 

Proceed, Mr. Mandel. 

Mr. Morris. Mr. Chairman, may I point out at this time, that the 
1945 security memorandum said the following about Alger Hiss : 

Bentley advised that members of this group had told her that Hiss of the State 
Department had taken Harold Glasser of the Treasury Department, and 2 or 3 
others, and had turned them over to direct control by the Soviet representatives 
in this country. In this regard, attention is directed to Whittaker Chambers' 
statement regarding Alger Hiss and to the statement by Gouzenko, regarding an 
assistant to the Secretary of State who was a Soviet agent. 



|i INTERLOCKING SUBVERSION IN GOVERNMENT 1073 

t|I So you see, Mr. Chairman, this memorandum was really showing at 
that time the three sources of information that Alger Hiss was impli- 
cated in the Communist underground activity. 

Tlie Chairman. Proceed, Mr. Mandel. 

JNIr. Mandel. Edward Fitzgerald : Mr. Fitzgerald transferred from 
the Foreign Economic Administration to the Bureau of Foreign and 
Domestic Commerce, Commerce Department. In July 1946, he be- 
came Assistant Chief of the Current Business Analysis Division, Com- 
merce Department, Office of the Secretary, Office of Program Planning. 
He was subsequently promoted from P-6 to P-7, and at the time of 
his resignation in September 1946, he was rated a social-science 
analyst. 

Maurice Halperin : Mr. Halperin transferred from a position as 
Cliief of the Latin American Bureau of the Office of Strategic Services 
to the State Department in October 1945. He remained in the Depart- 
ment until June 1946. 

Virginius Frank Coe : Mr. Frank Coe continued as Director of the 
powerful Division of Monetary Eesearch in the Treasury Department 
until May 1946. He then resigned to become Secretary of the Inter- 
national Monetary Fund, 1 of the 2 great international organizations 
in the financial field, which had been planned and projected initially 
by the Monetary Eesearch Division of the Treasury Department. 

Mr. Harry White, who had been Director of that Division during 
the planning stages, was the first Executive Director of the Inter- 
national Monetary Fund. In his new post Mr. Coe was promoted in 
1948, and again in 1950, and when he appeared before the Internal 
Security Subcommittee he was receiving an annual salary of $20,000. 
Mr. Coe has since resigned. 

Victor Perlo : In December 1945, Mr. Perlo transferred from the 
War Production Board to the Monetary Research Division of the 
Treasury Department as an economist and an economic analyst. In 
March of 1947, he left the Treasury Department to join the Inter- 
governmental Committee on Refugees, at a salary of $8,778. 

Harry Magdoff: Mr. Magdoif was chief economic analyst in the 
Office of Business Economics, Bureau of Foreign and Domestic Com- 
merce, Commerce Department, in December 1945. He was promoted 
from a P-7 to a P-8 rating in April 1946, and became program plan- 
ning officer in the Office of the Bureau of the Census, Commerce De- 
partment. A few weeks later he was transferred to the Office of Small 
Business. At the time of his resignation on December 27, 1947, he was 
program planning officer, at $9,975 a year. 

Irving Kaplan : Mr. Kaplan was in Germany in the fall of 1945 with 
the Foreign Funds Control Section of the Treasury Department. He 
returned in December 1945, and was with tlie Office of War Mobiliza- 
tion and Reconversion until 1947, when he became an economic adviser 
with the Division of Monetary Research at the Treasury Department. 
In January 1948 he left the national civil service for the Economic 
Development Section of the United Nations. 

Mr. Morris. Mr. Mandel, he was in the United Nations as well in the 
year 1952, when he was subpenaed by this committee ; was he not ? 

Mr. Mandel. That is right. 

Mr. Morris. And Frank Coe was the Secretary of the International 
Monetary Fund in December 1952, when he was subpenaed by this 
committee; was he not? 



1074 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Mandel. That is correct. 

The Chairman. Call your first witness. 

Mr. Morris. Is Mr. Caudle here? Will you come forward, Mr. 
Caudle, please? 

The Chairman. Mr. Caudle, will you hold up your right hand and 
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. Caudle. I do. 

The Chairman. Be seated. Will you state your full name to the 
committee ? 

TESTIMONY OF THERON LAMAR CAUDLE, WADESBORO, N. C. 

Mr. Caudle. My full name, Senator, is Theron Lamar Caudle. 

The Chairman. Where do you reside? 

Mr. Caudle. Wadesboro, N. C. 

The Chairman. What is your business or profession? 

Mr. Caudle. I am an attorney at law. 

The Chairman. Mr. Morris, you may proceed with the questioning 
of the witness. 

^ Mr. Morris. Mr.; Caudle, have you been head of the Criminal Divi- 
sion of the Attorney General's Office in the United States Government ? 

Mr. Caudle. I have. 

Mr. Morris. When did you hold that position? 

Mr. Caudle, From September 17, 1945, until about the same time, 
September or October 1947. 

Mr. Morris. I see. Will you give us a very brief description of your 
duties as head of the Criminal Division of the Attorney General's 
Office? 

Mr. Caudle. The Assistant Attorney General of the Criminal Di- 
vision supervises all of the criminal litigation in the country. There 
were at that time about 31,000 criminal statutes that had to be ad- 
ministered, and, of course, you worked in conjunction with the United 
States attorneys of the 96 different districts. All the criminal laws 
other than the tax laws and the Sherman and the Clayton Acts, the 
Sherman Antitrust Act, were administered by this Division. 

Mr. Morris, Mr. Caudle, in that position did you receive in the 
course of business classified FBI reports containing security infor- 
mation ? 

Mr, Caudle. I did. 

Mr. Morris, Can you recall in early 1940 receiving an FBI report, 
a classified FBI report, on a person known as Harry Dexter White? 

Mr, Caudle, I did, Mr, Morris. 

Mr. Morris. Will you give us your best recollection of that partic- 
ular episode ? 

Mr. Caudle. I will, but if you would like me to, I would like to 
preface my remarks concerning a statement you made a while ago, 
which implied that I called the committee, and notified a member 
of your staff, which is not 

Mr, Mokrls, We did not say you initiated it, Mr. Caudle. I said 
you had informed a member of the staff. 

Mr. Caudle. I would like to say, ]\Ir. Morris, that some time in 
October, I was in New York and Philadelphia on business, and I 



INTERLOCKING SUBVERSION IN GOVERNMENT 1075 

called my home and was informed by Mrs. Caudle that the Times- 
Herald in Washington was calling me 3 or 4 times a day, and was 
trying to reach me, that a Mr. Joseph Walter of the Times-Herald 
was trying to find me. I was not in any mood to tatft to newspapers 
about anything on this business trip, and I would not accept the call 
until I went to Wadesboro, back to my home. Then a call came 
through that morning, and it was Mr. James Walter, and not Mr. 
Joseph Walter, and Mr. James Walter, whom I knew when I was 
in the Criminal Division, told me that he was identified with the staff 
' of the Internal Security Committee, and that he was informed and 
had information concerning a confidential memorandum that came to 
me concerning Harry Uexter White, when I was Assistant Attorney 
(xeneral in charge of the Criminal Division, and he asked me if that 
information was not correct. 

It being correct, he being a member of your staff, I told the gentle- 
man that such a memorandum did come to me. 

I did want to straighten that out. Senator, because I was called by 
Mr. Walter, I was not calling Mr. Walter. 

The Chairman. In other words, a member of our staff, Mr. Walter, 
contacted you. 

Mr. Caudle. Yes, sir. He found out about it and contacted me. 

Mr. Morris. And Mr. Caudle, you drew the conclusion that some- 
body from the Times-Herald was trying to reach you because you 
knew that Mr. Walter had been associated with the Times-Herald. 

Mr. Caudle. Yes, for a long time when I was in the Criminal Di- 
vision he was a reporter, and I thought he still was until he told me 
he was a member of your staff. 

Mr. Morris. And you did tell him after he asked that there was in 
existence this particularly interesting security memorandum on the 
person Harry Dexter White ? 

Mr. Caudle. That is right. He told me he had information about 
the memorandum and that he had information also that such a memo- 
randum came to me. I told the gentleman that there was no use my 
dodging the question ; it was true. 

Mr. Morris. Mr. Caudle, will you now give us your best recollection 
of that episode, that is, that particular FBI report coming into your 
possession some time early in 1946 ? 

Mr. Caudle. Yes, sir. Some time early in 1946, Mr. Morris, I re- 
ceived from the Federal Bureau of Investigation a memorandum that 
I remember was sealed in the envelope and addressed to my personal 
attention. 

I opened it, of course, and read it. To the memorandum there was 
a personal memorandum, as I remember, addressed to me from the 
Federal Bureau of Investigation, explaining that the nomination of 
Harry Dexter White was under consideration or some phase of it. 
It was 8 years ago and my memory is too hazy to be exact. There was 
attached to this covering memorandum a long memorandum con- 
sisting of 8 to 15 pages. I do not know how much. It was exclusively 
devoted to Harry Dexter White, who at that time was an employee 
of the Treasury Department. 

Mr. Morris. Did it indicate that Harry Dexter White was a mem- 
ber of the Communist underground? 

Mr. Caudle. As I remember, it did ; yes, sir. 



1076 INTERLOCKIXG SUBVERSION IN GOVERNMENT 

Mr. Morris. Did it give any details supporting that conclusion? 

Mr. Caudle. I cannot remember any of the details in the memo- 
randum that was sent to me. 

Mr. Morris, ^ut you are certain that it came to the conclusion or 
■warranted the conclusion that you have stated before this committee? 

Mr. Caudle, Yes, sir; Mr. Morris. When I read the memorandum 
over, I became alarmed with the matter and I called the Office of the 
Attorney General for Mr. Clark, and he was not there. I was told 
he was over, I think, in Johns Hopkins getting a physical checkup. 
As I remember, I really thought that the memorandum was sent to 
me because Mr. Clark was away, and I found that he was away. Be 
it as it may, I did deliver the memorandum to Mr. Clark, sir. 

Mr. Morris. Mr. Caudle, may I break into your testimony at this 
point? Mr. Chairman, in trying to ascertain the date of this occur- 
rence as related here today by Mr. Caudle, Mr. Mandel. director of 
research of our committee, has been in touch with Johns Hopkins 
Hospital in Baltimore, and asked them the dates that Attorney Gen- 
eral Clark actually was in the hospital. 

Mr. Mandel, will you put into the record the date according to your 
investigation that Mr. Clark was in the hospital ? 

Mr. Mandel. The records of Johns Hopkins Hospital disclose that 
Mr. Tom C. Clark was admitted to the hospital in a private ward 
in the Marbury Building on February 15, 1946, and that he was 
discharged on February 26, 1946. 

Mr. Morris. Would that refresh vour recollection in any way 
Mr. Caudle? 

Mr. Caudle. No, sir. Those facts were made known to me in 
executive session. It was 8 years ago. Mr. Morris, and I cannot help 
but associate Mr. Clark being in Johns Hopkins when I called him. 
It is just in my mind. 

Mr. Morris. Mr. Caudle, do you know how many other people 
received that particular memorandum which you have described to 
the best of your ability here today ? 

Mr. Caudle. I did not know that anyone else had received that 
memorandum other than that there was an indication, I believe, in 
the file that a copy of it had been sent to the White House. 

Mr. Morris. Did you discuss that report with Attorney General 
Clark? 

Mr. Caudle. I told Mr. Clark I had read it over, that it was very 
important, and I wished he would read it over. It was very deroga- 
tory toward Harry Dexter White, and that if the facts in the report 
were true, I hoped he would do what he could to discourage the ap- 
appointment. 

Mr. Morris. Discourage the appointment of Harry Dexter Wliite. 

Mr. Caudle. That is correct, sir. 

Mr. Morris. You know that the record seems to indicate now that 
this could have taken place, at least according to Mr. Mandel's infor- 
mation, sometime between the 15th and the 20th, and that actually 
Harry Dexter White had been appointed — Mr. Mandel, do you have 
the date on the time Mr. White was actually appointed. 

A short chronology here, Mr. Chairman, indicates that on January 
23, 1946, Harry Dexter White was nominated to be Director of tlie 
International Monetary Fund. On February 4, 1946, an FBI report 
was sent to the White House, according toMr. Brownell. On February 



INTERLOCKING SUBVERSION IN GOVERNMENT 1077 

6, the United States Senate confirmed Mr. White. On February 7, 
President Truman sif^ned the commission, and according to this 
chronology, on April 8, 1947, Mr. "White resigned from the Treasury 
Dej)artment to obtain that particular employment. 

The Chairman. Right at that point, I would like to state for the 
record that this information that White resigned apparently from the 
Treasury Department on April 30, 194:6, to take effect on May 1, 1946, 
he went on the International Monetary Fund payroll on May 6, which 
was the date the fund became operative. That means that he stayed 
on the paj'roll of the Treasury 3 months after Mr. Byrnes' conversa- 
tion supposedly with the President. 

I have ]Mr. Byrnes' telegram here in reply to ours and I think it 
should come at a later time in the record and clarify this whole matter. 

(The telegrams appear at p. 1086.) 

Senator Hendrickson. Mr. Chairman, that is referring to Governor 
Byrnes ? 

The Chairman. Governor Byrnes. Thank you. Senator. 

Mr. Morris. Mr. Caudle, can you remember any further conversa- 
tions with any persons in Government about this particular report? 
Did you converse with other people and did you take any action? 

Mr. Caudle. Over in the Department? 

Mr. Morris. Anywhere, Mr. Caudle. 

Mr. Caudle. No, sir. I never did take any action. After I delivered 
it to Mr. Clark, INIr. Morris, I didn't do anything further about the 
report. 

Mr. Morris. Have you discussed that report since that time with 
anybody ? 

^Ir. Caudle. I probably have, since your Internal Security Com- 
mittee report has come out. 

Mr. Morris. In other words since the hearings of the Internal Secu- 
rity Subcommittee, they have refreshed your recollection about the 
report ? 

Mr. Caudle. Yes, sir. 

Mr. Morris. But you have taken no open position except for your 
statement to Mr. Walter of this committee ? 

Mr. Caudle. That is correct, sir. 

Mr. Morris. Mr. Chairman, would you receive into the record at this 
time by way of summation some of the evidence that the Internal 
Security Subcommittee has gathered in the course of the last 3 years 
about Harry Dexter White? 

The Chairman. It should go into the record at this point and become 
a part of the record. 

Mr. INIoRRis. ]Mr. JNIandel, will you put into the record at this time 
the testimony before the Internal Security Subcommittee of Elizabeth 
Bentley? In staff' conference we designated certain portions of her 
testimony that would be appropriate to this particular part of the 
record. 

The Chairman. May we have order, please. Proceed, Mr. Mandel. 

Mr. Mandel. This is taken from the report of the Senate Internal 
Security Subcommittee dated July 2, 1952, from wdiich I quote the 
following : 

Miss Bentley also testified that White, while Under Secretary of the Treasury, 
devised a plan whereby his superior. Secretary Morgeuthau. should be induced to 
effect exchange of all classified material between all sensitive agencies and the 



1078 INTERLOCKING SUBVERSION IN GOVERNMENT 

Treasury. According to the testimony, this plan was carried out, and the secrets 
of all sensitive agencies were thus made accessible to the Soviets through White. 
Notes in White's handwriting were found among the Chambers "pumpkin 
papers." 

That is on pages 422 and 492 of the hearings on the Institute of 
Pacific Relations. 

Elizabeth Bentley has testified that both Currie and White aided her in her 
work for Soviet military intelligence. 

That is on pages 418 and 423 of the IPR hearings. 

Mr. Morris. Mr. Chairman, there is one particular exchange of 
testimony that I think would be particularly appropriate at this time. 
In 1952 Miss Bentley testified as follo^Ys; Senator Ferguson asking 
the questions: 

Did you have trouble or difficulty in moving agents that you had into strategic 
positions in Government or in the Army that you were talking about that you 
did not want them where there was danger, but you wanted them in strategic 
positions? 

For example, Silvermaster. Did you have trouble moving people such as that 
or how much were they moved to strategic positions so that you could get your 
information? 

Miss Bentley. We didn't have too much trouble. In the case of Silvermaster 
he pulled strings and got in there. 

"Senator Ferguson. What were your avenues for placing people in strategic 
positions? 

Miss Bentley. I would say that two of our best ones were Harry Dexter White 
and Lauchlin Currie. They had an immense amount of influence and knew 
people and their word would be accepted when they recommended someone. 

The Chairman. Does our record show who Lauchlin Currie was 
and where he was employed ? 

Mr. Morris. At that time Lauchlin Currie was Executive Assistant 
to the President of the L^nited States. 

The Chairman. Thank you. 

Mr. Morris. Is there another section you have there, Mr. Mandel ? 

Mr. Mandel (reading):^ 

Miss Bentley. Harry Dexter White, I couldn't tell you that he actually has 
been a member of the party but to all intents and purposes he was because he 
followed its discipline. According to Nathan Silvermaster he was afraid to 
meet people like myself. He had for sometime been working for an agent who 
had turned sour, later identified as Whittaker Chambers. 

Mr. Morris. Mr. Sourwine, do you have any questions ? ^ 

The Chairman. Do you have any questions to ask the witness, Mr. 
Sourwine ? 

Mr. Sourwine. Mr. Caudle, do you remember who in the Federal 
Bureau of Investigation signed the covering memorandum with which 
this White report came to you ? 

Mr. Caudle. No, sir. All of the covering memorandums from the 
FBI that came to me came in the name of the Director, Mr. Hoover, 
to me, and then probably the one who would approve it would initial 
the other side. All of them came in the name of the Director. 

The Chairman. Further questions? Senator Hendrickson, any 
questions ? 

Senator Hendrickson. One or two questions, Mr. Chairman. 

Mr. Caudle, I understand you had two conversations with Attorney 
General Clark concerning this report on the same day ; is that correct ? 



^ p. 420, Institute of Pacific Relations hearings. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1079 

Mr. Catjdle. As I remember, Senator, I had a conversation with 
him on the telephone, a brief conversation, and then I had a conversa- 
tion with him 

Senator, Hendkickson. That was the conversation which took place 
from the hospital, is that correct? 

Mr. Caudle. On the telephone, as I remember it; yes, sir. Then 
the next conversation was the brief one I had when I delivered the 
copy of the report that came to me, to him. 

Senator Hendrickson. That was on the same day? 

Mr. Caudle. As I remember, on the same day ; yes, sir. 

Senator Hendrickson. That was a personal conversation? 

Mr. Caudle. A personal conversation. 

Senator Hendrickson. In which you discussed the report? 

Mr. Caudle. Yes, sir ; I told him I read it over and it looked very 
bad and that I hoped he would give it his immediate attention because 
I believed that if the facts as stated in the memorandum were true, 
this man was thoroughly unfit for public office and ought not to be 
nominated. 

Senator Hendrickson. Now, Mr. Caudle, when you had this con- 
versation with the Attorney General at the hospital, could it have 
been possible that the hospital that you were talking to would have 
been one of the service hospitals, either Walter Eeed or the Naval 
Hospital ? 

Mr. Caudle. Senator, it could have been, of course, I just don't 
remember. It has been 8 years ago. I do not remember any of the 
contents of the memorandum concerning Dexter White, except I do 
remember the tremendous impression its contents made upon me. 

Senator Hendrickson. I raise that question because the testimony 
indicates, the record indicates, rather, that the Attorney General was 
a patient at Johns Hopkins Hospital, but he might well have had 
medical or physical checkup at one of the service hospitals prior to 
becoming a patient. 

You don't know about that ? 

Mr. Caudle. No, sir, I am not positive about it. 

The Chairman. I think he has testified fully on that. 

Are there no further questions ? You are excused, Mr. Caudle. 

Mr. Caudle. May I be permanently excused. Senator ? 

The Chairman. You are excused, sir. 

Mr. Morris, do we have anything in our records that show activity 
of Harry Dexter White in the negotiations between Japan and the 
United States prior to Pearl Harbor? 

Mr. Morris. Yes, Mr. Chairman. I would like to call the attention 
of the committee to a particular excerpt - from the report that the In- 
ternal Security Subcommittee filed with the Senate after its hear- 
ings on the Institute of Pacific Relations. 

The Chairman. Read it into the record and it may become a part 
of this record. 

Mr. Morris (reading) : 

In November of 1941 war and peace in the Pacific were at a precarious balance. 
Representatives of the Japanese Government were in Washington conferring 
with Secretary of State Hull regarding the issue which divided Japan and the 
United States. During the conversations a modus vivendi was proposed under 

2 P. 179. 



1080 INTERLOCKING SUBVERSION IN GOVERNMENT 

which the two Nations would agree to a 90-day truce, while negotiations con- 
tinued. 

As late as November 25, the modus vivendi was still under consideration. On 
the next day, however, Secretary Hull rejected the idea, and sent a strong 
note to the Japanese. Twelve days later the Japanese attacked Pearl Harbor. 

Beneath the surface of these well-publicized events, other things had been 
happening. To understand them, it is necessary first to understand that the 
fundamental longtime strategy of the U. S. S. R. to protect the "soft under- 
belly" of its eastern frontier against Japanese encroachment, was to turn the 
tide of Japanese advance southward, and involve Japan in a war with the 
United States, so that the United States and nations with possessions south of 
Japan would relieve the pressure on the Soviet frontier. 

Richard Sorge. one of the ablest of the Kremlin's spies, was in Tokyo in pre- 
Pearl Harbor days as the head of an espionage ring which had two objectives : 

(1) To obtain intelligence information regarding Japanese military intentions ; 

(2) To influence Japanese policy away from an attack on the Soviet Union 
and toward an attack on the United States. Great Britain, and the Dutch East 
Indies. 

This is footnoted: 

Mitsusada Yoshikawa, director of the Special Investigation Bureau of the 
Attorney General's OflSce of the Japanese Government, testified that Sorge, work- 
ing through Ozaki and Saionji sought to impress on the Japanese oflBcials that 
if they struck north, their forces would encounter powerful Red armies, there 
would be little of value in Siberia, and she would probably meet greater diflS- 
culties than in her war with China. If Japan struck south, it was pointed 
out, she would find many useful resources and, besides, Japan historically has 
always failed in any military missions toward the north. 

Sorge at that time was attached to the German Embassy in Tokyo. His 
assistant was Hotsumi Ozaki who was adviser to the Japanese Premier. Kin- 
kazu Saionji, a descendant of a Japanese hero, aided Ozaki. Saionji had been 
secretary of the Japanese Council of the IPR and Ozaki a delegate to the 1986 
IPR conference in the United States. Included in the ring were Guenther 
Stein, Chungking correspondent of the IPR, and Agnes Smedley, a short-time 
member of the IPR. 

Lattimore was in Chungking with Chiang as the personal representative of 
the President of the United States, during the days when the modus vivendi 
was under consideration. On November 25 Lattimore wired Lauchlin Currie, 
executive assistant to the President, asking Currie to "urgently advise the 
President" of Chiang's opposition to the modus vivendi. His dispatch warned 
that Japan should not escape "military defeat by diplomatic victory." 

At the same time, Edward C. Carter was in New York when he received a 
delegram from Harry Dexter White, then Under Secretary of the Treasury, 
asking him to come to Washington immediately. Carter testified that he had 
been called to Washington because White sought his aid to pi-event a "sellout 
of China," but by the time he reached AVashington, the "sellout" had been 
averted. 

The term "sellout" there is in quotes. It is the expression used by 
Mr. Carter. 

On November 29 Carter wrote that he had seen Lauchlin Currie on tlie 28th. 
In that letter Carter expressed the feeling that Currie "probably had a terribly 
anxious time for the past week. For a few days it looked as though Hull was 
in danger of selling China and America and Britain down the river. Currie 
did not say this but I learned it from other high sources." 

Elizabeth Bentley has testified that both Currie and White aided her in her 
work for Soviet Military Intelligence. Whittaker Chambers gave corroboration 
to her testimony about White. 

Mr. Morris. The next witness is General Vaughan. 

The Chairman. General Vaughan, will you hold your right hand 
up to be sworn and testify. Do you swear that the testimony you 
will give in this hearing will be tlie truth, the whole truth, and 
nothing but the truth, so help you God ? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1081 

TESTIMONY OF HARRY HAWKINS VAUGHAN, MAJOR GENERAL 
(RETIRED), FORMERLY MILITARY AIDE TO PRESIDENT TRU- 
MAN, ACCOMPANIED BY F. JOSEPH DONOHUE AND CHARLES 
PATRICK CLARK, ATTORNEYS AT LAW, WASHINGTON, D. C. 

General Vaughan. I do. 

The Chairman. Be seated. 

Will you state your full name to the committee? 

General Vaughan. Harry Hawkins Vaughan. 

The Chairman. Where do you reside, General Vaughan? 

General Vaughan. No. 3 Forest Hill Road, Alexandria, Va. 

The Chaieman. What is your business or profession ? 

General Vaughan. I was retired from the Army on the 1st of last 
February. 

The Chairman. Mr. Morris, you may proceed with the questioning 
of the witness. 

Mr. Morris. Were you an assistant to the most recent President of 
the United States, Harry Truman ? 

General Vaughan. Yes, sir. 

Mr. Morris. Will you tell us what i)articular time you served in 
that capacity? 

General Vaughan. Might I at this time read a short statement that 
I read in the executive session ? 

The Chairman. You may. 

General Vaughan. At the time the subpena issued by this committee 
of the Senate was served upon me, I had some serious doubts as to 
the propriety of my answering any question concerning the con- 
fidential relationship which existed between me as military aide to the 
then President, Mr. Truman. However, that doubt has been re- 
solved in my mind as a result of having been advised that President 
Truman has authorized me to answer fully insofar as I can any ques- 
tion concerning the subject matter of the inquiry for which this sub- 
pena was issued. 

The Chairman. General Vaughan, we will let the record show at 
this time you are present here with your counsel. 

General Vaughan. Yes, sir. 

The Chairman. Would you please state your name and give your 
address ? 

Mr. DoNOHUE. Mr. F. Joseph Donohue, 503 D Street NW., 
Washington, D. C. 

The Chairman. Thank you very much, Mr. Donohue. 

Mr. Donohue. I am a member of the bar of the District of Columbia. 

The Chairman. Thank you very much. Proceed, Mr. Morris, with 
the questioning. 

Mr. Morris. General Vaughan, I think you were about to tell us 
when your duties commenced as assistant to the President of the 
United States, and how long they continued. 

General Vaughan. I was appointed aide to the President of the 
United States a few days after Mr. Truman assumed that office. I 
don't remember the exact date. The record will show that. 

Mr. Morris. Were you in military service at that time ? 

General Vaughan. I was in the military service at that time. I 
had been aide to the Vice President. 

32918° — 54— pt. 16 2 



1082 INTERLOCKING SUBVERSION IN GOVERNMENT 

]SIi\ Morris. That is Vice President Truman. 

General Vaughan. Truman. 

Mr. Morris. Then how long did you perform those duties? 

General Vaughan. Until the 20tli of January last. 

Mr. Morris. That was the termination of Mr. Truman's term in 
office. 

General Vaughan. Correct, sir. 

Mr. Morris. How long did your service with the United States 
Army continue after that time ? 

General Vaughan. I was retired on the 1st day of February. That 
was 10 days later. 

Mr. Morris. General Vaughan, was it your practice, serving in that 
capacity, to receive classified FBI reports on various individual em- 
ployees in the United States Government ? 

General Vaughan. I received reports. I can't recall how many of 
them were classified at this time. I received those reports and con- 
veyed them to the President. 

Mr. Morris. In other words,, it was a regular thing for FBI re- 
ports to be submitted to you ? 

General Vaughan. Yes, sir. They all came through my office. 

Mr. Morris. Did you make any record of those reports as they came 
into your office? 

General Vaughan?! No sir, I did not. 

Mr. Morris. Do you have any particular recollection of a report 
prepared by the Federal Bureau of Investigation in approximately 
November 1945, and circulated throughout the Government at a period 
shortly later than that, which set forth rather extensively the general 
situation with respect to Communist and Soviet activities among 
United States citizens serving in the United States Government ? 

General Vaughan. No, I do not at this time recall any specific re- 
port. It was not my duty to act upon this, and I was really simply a 
means of conveyance. 

Mr. Morris. If the Attorney General of the United States in the 
possession of the official records of the United States tells this commit- 
tee that there was in existence and there was circulated to you for the 
President of the United States such a report, would you dispute that 
statement ? 

General Vaughan. I would not question it for a moment. 

Mr. Morris. You say you would not ? 

General Vaughan. I would not. 

Mr. Morris. In other words, you do remember receiving these re- 
ports, you have no particular recollection about this particular report, 
but if the records indicate that you had received it for the President, 
you would not dispute that fact? 

General Vaughan. I would not ; that is right. 

Mr. JNIoRRis. With respect to the second memorandum, this memo- 
randum which we describe as the second memorandum, being a memo- 
randum specifically on the personality of Harry Dexter White, can you 
recall, in the position that you just described to us, receiving such a 
report on Harry Dexter White ? 

General Vaughan. No, I cannot recall that, either, but the same 
goes for that as for the others. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1083 

Mr. Morris. In other words, if the Attorney General has stated that 
tlie records indicate that you received such a report for the President 
of the United States, then you would not dispute that fact? 

General Vaughan. No, I would not, sir. 

The Chairman. General Vaughan, as I understand it, you took no 
action whatever. You did not try to evaluate or determine the im- 
portance of any of these reports? 

General Vaughan. It was not my duty. 

The Chairman. You were merely a conveyor of the report on to the 
President of the United States? 

General Vaughan. That is correct, sir. 

Mr, Morris. Have you ever discussed the contents of any of these 
reports with the President of the United States? 

General Vaughan. On several occasions I would receive reports di- 
rected to me. They were not thought of sufficient immediate interest 
to be called to the President's attention. They would be of general 
interest on subversive activities in certain parts of the country or in 
certain parts of the world. The covering letter would say, '"This is 
called to your attention as it may be of interest to the President." A 
report of that kind, I would look it over, and if there w^as something 
that commanded the President's attention, I would call it to his atten- 
tion. Otherwise, it would go in the general file. 

Mr. Morris. Suppose it would be if the particular reports we are 
talking about had appended to them such a statement, that would not 
vary the testimony you have given up to this time ? 

General Vaughan. No, it would not. 

Mr. Morris. Mr. Chairman, I have no further questions at this 
time. 

The Chairman. Any further questions? 

Mr. Sourw^ine. Mr. Chairman. 

The Chairman. Mr. Sourwine. 

Mr. Sourwine. General Vaughan, you have testified that you fre- 
quently got FBI reports on individuals. Did you in all cases give 
those reports to the President if they were marked for him ? 

General Vaughan. Anything that was marked for the President 
went over to him, if not the day I received it, certainly no later than 
the next day if the President was in town, and when I was in town. 
I will say it the other way. Wlien the President was in town, I was 
usually in town. 

Mr. Sourwine. The point I am trying to make, sir, is whether you 
yourself gave those reports to the President or sent them routinely 
through some other form of delivery? 

General Vaughan. I, usually, at the staff meeting in the morning, 
laid them on the table behind the President's desk for his attention 
when he got around to it. 

Mr. Sourwine. So any such report that came to you, you know it 
was delivered to the President? 

General Vaughan. It was; yes, sir. 

Senator Hendrickson. General, how many of these reports did 
you receive in the course of a week ? 

General Vaughan. Senator, that varied; probably some weeks 2 
or 3, and some weeks 15 or 20. 

Senator Hendrickson. Did you keep any office record of these 
reports ? 



1084 INTERLOCKING SUBVERSION IN GOVERNMENT 

General Vaughan. No, sir, I did not. I had one stenographer. 
My staff consisted of one young lady at that time. There was a lot 
of material. 

Senator Hendrickson. So there is no record of the reports that 
j^assed through your hands ? 

General Vaughan. In my office; no sir. 

The Chairman. Mr. Morris, do you have further questions to ask? 

Mr. Morris. Yes; Mr. Chairman I would like to ask General 
Vaughan two more questions. 

General Vaughan, did you keep a diary or record of any of these 
reports ? 

General Vaughan. No, sir. 

Mr. Morris. Who was your secretary at tliat particular time? 

General Vaughan. Ruth Anderson. She has since married and 
I can't recall at the moment her present name. Ruth Anderson. 

INIr. Morris. Would you describe for the record the duties per- 
formed by Ruth Anderson at that time ? 

General Vaughan. Ruth Anderson had general secretarial duties. 
She wrote my letters, she answered the phone, she handled my ap- 
pointments, she did all the filing, she did practically everything that 
was done in a secretarial way in the office. 

Mr. Morris. Mr. Chairman, we have subpenaed Ruth Anderson and 
we did hear her testimony, as you know, in executive session today. 
Everything she told this committee coincided with the testimony 
given by General Vaughan, namely, that she was his secretary, that 
she did keep the records, that she did these things in the ordinary 
course of business, that she had no recollection of these particuhir re- 
ports, and is in no position to confirm or deny the existence of these 
particular reports. 

In view of that fact, and in view of the fact that there is no conflict 
between her testimony and the testimony given here by General 
Vaughan, I submit that it probably is not necessary to call her at this 
time. 

The Chairman. That is correct. Are there further questions? 

Senator Hendrickson. General Vaughan, in the course of a day if 
you received a report and you did not have the oi^portunity to turn it 
over to the President of the United States, what would happen to 
the report overnight, let us say ? 

General Vaughan. If the report was marked classified, I had a 
safe. It went into the safe. If it was not classified material, it staj'ed 
in a desk drawer where I had a folder where I put things that were 
to be delivered to the President or called to his attention. 

Senator Hendrickson. Did anyone else have access to this safe? 

General Vaughan. No one, sir, but myself. 

Senator Hendrickson. You do not recall ever putting into the safe 
a report treating with one Harry Dexter White? 

General Vaughan. No, sir; I cannot recall that. 

Senator Hendrickson, That is all. 

Mr. Morris. Mr. Chairman, I think while General Vaughan is still 
on the stand, and I think it is a])propriate for our record at this par- 
ticular juncture, I would like to read into the record two excerpts from 
the statement of Attorney Genei'al Brownell on this particular inci- 
dent. I read these because they will dovetail with the testimony given 
by General Vaughan. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1085 

Mr. Brownell stated on Friday, November 6, 1953 : 

But I can now announce officially, for the first time in public, that the records 
in my Department show that White's spying activities for the Soviet Government 
were reported in detail by the FBI to the White House by means of a report 
delivered to President Truman through his military aide, Brig. Gen. Harry H. 
Vaughan, in December of 194.5. 

Again on November 9, 1953, Mr, Brownell stated the records in the 
Department of Justice show that months prior to White's entering 
upon office, Mr. J. Edgar Hoover, Director of the Federal Bureau of 
Investigation, on two separate occasions sent reports describing 
White's spying activities to the White House to the attention of the 
President, with copies also to other important officials in the Truman 
administration. 

The first of these occasions was on December 4, 1945 : 

As I mentioned in my speech last Friday, on that day the FBI transmitted 
to Brig. Gen. Harry H. Vaughan, military aide to the President, for the attention 
of the President a general report on the subject of Soviet espionage activity in 
the United States, which report was dated November 27, 1945 and contained 
among other things a summary of the espionage activities of Harry Dexter 
White as of that date. Because of the general nature of this report, copies 
were sent by the FBI to other top administration officials, and the records 
show that copies were sent by the FBI on December 4, 1945, to — 

listing other people who were associated with this particular witness, 
but since he is on the stand now, I would like to terminate the read- 
ing of this at this partictilar time. 

The Chairman. All right. If there are no further questions, you 
will stand aside and be excused. 

General Vaughan. Thank you, gentlemen, 

Mr. Morris. Mr. Chairman, inasmuch as former Secretary of State 
Byrnes, now Governor Byrnes, was mentioned in this particular 
memorandum, the committee was anxious to determine from Mr. 
Byrnes his recollection of this particular episode. On Monday even- 
ing I phoned Governor Byrnes through his administrative assistant, 
Mr. McCullough, in South Carolina, and told him the facts relating 
to this particular memorandum, and asked him if he would be re- 
sponsive to inquiries by this particular subcommittee on this particu- 
lar set of facts. 

After discussion of all the possibilities through which this informa- 
tion could be imparted, namely, the possibility of his being subpenaed, 
his appearing voluntarily as a witness, or submitting statements, it 
was agreed that he would respond if questions were submitted by this 
subcommittee to him, 

(A statement of Governor Byrnes, issued to the press on November 
9, 1953, was sent to the subcommittee by Governor Byrnes and was 
orderecl to appear in the record at this point. It follows :) 

Statement of Gov. James F. Byrnes, November 9, 1953 

I do not recall the date but on the afternoon of the day preceding the con- 
firmation by the United States Senate of the nomination of Harry Dexter White 
as Executive Director of the International Monetary Fund a representative of 
Mr. Edgar Hoover delivered to my secretary a copy of a report about Mr. White 
and his affiliation with Communists, which report I was advised had been sent 
to the W'hite House. This was the only report about White that was called to 
my attention. I was out of the country the greater part of December 1945. 

The following day, after I had read the report, I requested an engagement with 
the President. That afternoon I was invited to come to the White House. 



1086 INTERLOCKING SUBVERSION IN GOVERNMENT 

I told President Truman I had received a copy of the report sent to him by 
Mr. Hoover, that I vpas shocked by its contents, and I asked what he intended 
to do about it. The President stated he had read the report and that he also 
was surprised. 

When I asked the status of the nomination of Mr. White, he said it was still 
pending in the Senate. I told him, in view of the charges contained in Hoover's 
report, I thought he should immediately ask the Senate to withhold action and 
then withdraw the nomination. 

The President had a member of his staff telephone to Mr. Leslie Biffle. the 
Secretary of the Senate. The President asked Mr. Biffle the status of the nomi- 
nation, but did not give Biffle any reason for his inquiry. Mr. Biffle stated that 
the nomination had Iveen favorably acted upon that afternocm. 

The I'resident apparently was as disappointed as I was by the statement of 
Mr. Biffle. In further discussing the matter, I suggested to the President he 
might ask someone in the Senate about moving to reconsider the vote by which 
the nomination was approved. He did not tliink well of that suggestion. I 
then suggested to him that the only other thing he could do would be to refuse 
to issue a commission to White. He said he had been advised on a previous 
occasion that once the Senate had acted he could be required to sign a com- 
mission. I told him if lie should send for White and tell him about Hoover's 
report, White would never resort to the courts. 

I got the impression that the President was disposed to follow that course. 
However, he said he wanted to think it over. 

During our conversation the President had told me he appointed White upon 
the recommendation of the Secretary of the Treasury, Mr. Vinson. Later that 
afternoon Mr. Vinson came to my office. He said the President had told him 
of what had occurred and of my recommendation. INlr. Vinson was quite worried 
about it. However, I got the impression that he agreed with my suggestion that 
the President refuse to commission White. He said he was going to talk with 
tlie President again about it. 

I heard no more from either of them about the matter, but later I noticed 
in the press that White was commissioned by the President and became Execu- 
tive Director of the International Monetary Fund. 

James F. Byrnes. 

Mr. Morris. We have directed two questions to Governor Byrnes, 
and his answer came around noon today. I would like both of them 
to be in the record. 

The Chairman. Would you first read the questions sent to Governor 
Byrnes of South Carolina. Around noon today I received a telegram 
in my office in reply to those questions. For the record will you read 
the questions which were sent to him? 

Mr. Morris. Question No. 1 : 

Have you any recollection as to the identity of the White House official who 
handled for President Truman in your presence the telephone call to Leslie 
Biffle, secretary of the Senate, in reference to the nomination of Harry D. White? 
Will you recount the conversation in as much detail as you recall? 

The second question is : 

After you learned that White had been confirmed, did you do anything further 
about the matter? If so, whether you wrote or spoke about it or left memoranda 
or gave instructions. Please give details as fully as possible. 

The Chairman. Here is the telegram that I received around noon 
today from Governor Byrnes: 

Replying to the first question in your telegram, I cannot state the identity of 
the person who handled, for President Truman, his call to Mr. Biffle. It is my 
recollection that the President's (le.sk phone was connected with all the offices at 
the White House, but whether the person to whom he spoke was the White House 
telephone operator or some other memlier of his stinf, I do not know. There 
was no reason why he should tell me and no reason why I should pay any atten- 
tion to who was handling his call. 

Last Monday night I was advi.sed by representatives of the press that Attorney 
General Brownell had mentioned me as one of the several members of the Cabinet 



INTERLOCKING SUBVERSION IN GOVERNMENT 1087 

who received a copy of the Hoover report about Mr. White. Only then, in answer 
to press inquiries, did I state my recollection of my conversation vpith the Presi- 
dent. That statement was published, a signed copy I will mail you today. 
. In resiwnse to your request for further details of that conversation after more 
than 7 years I would not attempt to recall everything that was said. I do recall 
discussing some of the statements in the FBI report. The FBI does not sit as a 
court but reports all information. I said that while some of the statements 
would not be admissible in couit against Mr. "White, nevertheless the whole report 
aroused such serious suspicion that I thought he should try to stop the confirma- 
tion of the appointment. The President reached the same conclusion and I am 
satisfied that, had the nomination not been acted upon, he would have stopped 
confirmation. 

I do not have access to the files of the State Department. Yesterday afternoon 
the press announced that the State Department had found in its files a copy of 
the following memorandum : 

February 5, 1946. 

IMemorandum for the President : 

The enclosed letter addressed to Mr. Frederick Lyon, of this Department, by 
Mr. J. Edgar Hoover and the enclosures referring to Harry Dexter White, I deem 
of such importance that I think you should read them. 

J. F. B. 

This memorandum shows I sent it to the President the afternoon of February 
5 before talking with the President about it on February 6. 

Your question No. 2 is answered in my statement of Monday night. 
Sincerely yours, 

James F. Byrnes. 

Mr, Morris. Mr. Chairman, will you accept for the record the state- 
ment described in that telegram and make it a part of the record ? 

Senator Hendrickson. Mr. Chairman, the statement should ap- 
pear, it seems to me, just preceding the questions. 

The Chairman. It may go into the record at that point and will 
become a part of the record, and also the statement issued which is 
being sent to me by mail will become a part of the record. 

(The statement referred to appears on p. 1085.) 

Senator Hendrickson. I was referring to Governor Byrnes' public 
statement. 

The Chairman. He is mailing that to me. We want his official 
copy, rather than taking it from the press. It will go into the record 
and become a part of the record. 

Mr. Morris. Mr. Chairman, there are a few other details, a few 
other documents I would like to offer for the record at this time. 
They relate to the general work of the subcommittee in pursuing the 
line of inquiry indicated by the hearings today. 

The Chairman. Proceed. 

Mr. Morris. We have in the course of our investigations, particu- 
larly in our handling of the security memorandum of November 1945, 
noticed that Igor Gouzenko, associate code clerk, was particularly 
knowledgeable with respect to the rather extensive espionage activi- 
ties being conducted in the United States. 

I have a statement made by then Prime Minister Mackenzie King, 
which indicated that Igor Gouzenko did have information that re- 
lated to espionage carried out within the United States. Certain 
espionage activity was of interest to the United States. I would like 
to offer that for the record. 

The Chairman. It may go into the record and become a part of the 
record. 



1088 INTERLOCKING SUBVERSION IN GOVERNMENT 

(The document, which is fin excerpt from the printed record of the 
proceedings of the Canadian Parliament on March 18, 1946, is as 
follows:) 

Mr. Mackenzie King, Mr. Siieaker, on Friday afternoon last I expressed the 
hope that honorable members of this House would I'ead with care the interim 
reports which had been presented by the two justices of the Supreme Court of 
Canada who are acting as commissioners to conduct an investigation into the 
disclosure of secret information to unauthorized persons for communication to 
a foreign power. This afternoon my honorable friend, the leader of the op- 
position, aslied me to take the House and the country into my confidence with 
reference to matters pertaining to this investigation. May I say at tlie outset 
that in this I am necessarily confronted with one serious handicap, one to which 
I have referred in a statement which I have given to the public, namely, that 
the whole matter is one which is sub judice at the present time. For that reason 
there is very much that I should like to impart to the House and to the country 
which unfortunately I will not be able to impart and which cannot be given 
to the House or the country until those who have been or may be committed for 
trial have had their trial and evidence has been taken in public upon which 
verdicts will be based. 

I have been asking myself at what point one would necessarily have to draw 
the line with respect to what is not permissible because of matters being sub 
judice and, iip to what iioint matters might be discussed quite frankly. I am 
right, I believe, in assuming that anything that took place of which I had 
knowledge up to the time of the appointment of the commission and which 
influenced the Government in its action with respect to the course it took in 
appointing tlie commission and in acting on the advice of the commission 
in certain particulars would be a matter that I should be quite free to discuss 
openly, being careful all the time not to say anything, if that is possible, that 
would in any way prejudice the trials that may take place. 

I do not think I can do better in speaking to the question itself and giving 
to the House at once some idea of its vast significance and importance than to 
quote from the first interim report of the royal commission. I am not disclosing 
anything that should not be disclo.sed because of sub judice reasons if I quote 
from a piiblished report wliich is in the hands of all honorable members of 
Parliament. Therefore, I would bring immediately to the attention of the House 
the gravity of this question and its far-reaching significance and imi)ortance by 
reading what the commissioners have said with respect to the imiuiry tliey are 
holding, what they have found thus far, and what they have felt should be 
given as soon as possible to tlie public. On page 11 in the document which was 
tallied on Friday last relating to the proceedings of the royal commission will 
be found the following paragraph : 

"The evidence estalilislies that a network of undercover agents has been 
organized and developed for the purpose of obtaining secret and confidential 
information particularly from employees of departments and agencies of the 
dominion government and from an employee of the ofiice of the High Commissioner 
for the United Kingdom in Canada. The evidence reveals that these operations 
were carried on I)y certain members of the staff of the Soviet Emliassy at Ottawa 
under direct instructions from Moscow. The person directly in charge of these 
operations wa.s' Colonel Zabotin, military attache of the Embassy, who had as 
his active assistants in this work. Lieutenant Cohmel Motinov. chief assistant 
military attache, Lieutenant Colonel Rogov, assistant military attache, air, ;Major 
Sokolov, of the staff of the commercial counselor of the Embassy, Lieutenant 
Angelov, one of the secretaries of the military attache as well as other menil)ers 
of the staff of the military attache, all of whom, as well as the agents whom 
they employed in the pursuance of their activities, were, in the interests of 
secrecy, known by undercover names." 

In the nest paragraph will be found the following: 

"We have had before us a former employee of the Russion Embassy at Ottawa, 
Igor Gouzenko, the cipher clerk of the military attache, who has described this 
organization and its functioning, and who has produced original documents, 
the authtenticity of which we accept." 

I need scarcely say that these paragraphs describe as serious a situation as 
has existed in Canada at any time. If the House has had to wait some little 
time for the information which I intend to give it this evening, it is because 
the Government have been only too conscious of how serious this situation is and 
how far-reaching its repercussions may be. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1089 

Perhaps I cannot better take the House into my confidence than to begin with 
an account of how I personally become informed of this situation and how the 
Government became aware of it. Honorable members perhaps recall tliat when 
the first session of this House opened on the 6th of September last we met in 
the morning to choose a Speaker and the proceedings were to begin at 11 o'clock. 
Honorable members may have noticed that at that time the House was kept 
waiting, for a few minutes at least, before I found it possible to come in. What 
had happened was this — I was informed that morning by the Under Secretary 
of State for External Affairs that a young man from the Russian Embassy had 
been to the office of the Minister of Justice (Mr. St. Laurent) asking to see the 
Minister of Justice. He said that he had most important information to impart 
to the Government, that it disclosed a situation which threatened very seriously 
conditions in Canada, that it was an extremely serious situation and that he 
wished to warn the Canadian people with respect to it. He said that he had in 
his possession documents which would make wholly clear what he was saying 
and he wished these documents to be in the possession of the Government. He 
said that he had taken these documents' from the vaults of the Russian Embassy 
and also from among papers which he had collected over a short time with a 
view of making the disclosure which he now wanted to make. 

I was asked what should be done in these circumstances. I replied that I 
thought this was a case where we could not be too careful or too cautious ; 
that this man represented that he had come from the Russian Embassy ; that 
we could not say whether the documents he had in his possession were fabrica- 
tions or not ; that we did not know what his own state of mind might be, or 
how responsible he was ; that we knew nothing of the circumstances which had 
caused him to leave the Embassy and come to the Government and that I thought 
he should be told to go back to the Embassy with the papers he had in his 
possession. 

He had been anxious to see the Minister of .Justice. He had not seen the 
Minister of Justice. He told his story to the secretary of the Minister of Justice, 
who gave a full account to the Under Secretary of State for External Affairs, 
and he gave me the particulars which I have just mentioned. 

What I felt most important was to see that nothing should be done which 
would cause the Russian Embassy to believe that Canada had the least suspicion 
of anything which was taking place there, or which could be regarded by them 
as unexpected in the circumstances. 

This advice was given to the man who came, whose name has been given in 
the commission report — Igor Gouzenko. He was a cipher clerk in the Russian 
Embassy. He had been in the embassy in Ottawa here for some 2 years, asso- 
ciated with the military attache. Prior to those 2 years he had been for 
a couple of years in the secret service in the U. S. S. R. He had been trained 
particularly in ciphering and deciphering messages. That, he claimed, was 
how he had got possession of the documents to which I have referred. 

Perhaps at this point I should indicate what I subsequently learned about 
Gouzenko's movements. Apparently he left the Embassy around 6 : 30 in the 
evening of the day prior to the one at which he went to call at the office of the 
Minister of Justice. He left with the papers in his possession and went from 
the Embassy to one of the newspaper offices in this city. It was to the Journal 
that he went and told his story to one of the persons whom he found in tha 
office. He wanted to see the editor. The editor was not present; but, I am 
told, he gave a fairly full account of what he believed the people of Canada 
should know, what he wished to impart, and seemed very anxious that full 
publicity should be given to the statement which he was making. He claimed 
that his purpose was to let the Canadian people know of a situation about which 
he felt they should know. I understand that though his story seemed fantastic 
he was told — as he had documents with him — that he should go and see the 
mounted police, that if he had information of this kind they were the persons 
he should see. 

He went back to his house that night. Next morning he came to the office of 
the Minister of Justice. Not seeing the Minister of Justice he then left for other 
parts. He had his wife and little child with him. During the course of the day — 
I need not relate all his movements — he visited the office of the Crown prosecutor 
in the city and spoke there about his situation, again wishing to give publicity 
to the information that he had. During the afternoon he left his little child with 
a neighbor to be cared for, while he and his wife sought to meet others and dis- 
cuss the situation with them. Then, at night, he went to his home, and when he 



1090 INTERLOCKING SUBVERSION IN GOVERNMENT 

was there he asked immediate neiilhbors, a gentleman and his wife, if they 
would be kind enough to look after his little child ; that he was very fearful that 
something might happen to him that night, that he felt that by this time it would 
have been discovered that he had left the Embassy and had taken with him certain 
papers which were of significance, and that he might expect to be killed in the 
course of tlie evening unless he got protection. The persons in whom he con- 
fided his situation took him into their apartment along with the little child and 
liad them all stay in one of the rooms. Meantime the gentleman whose apart- 
ment it was, seeing the fear and the dread which he had, went to the city police 
and told them of the situation and asked that protection should be given to him. 
Arrangements were made with the police to be in the near vicinity lest there 
should be any incidents. 

About midnight tliere was an incident. His apartment was entered by four 
persons — I believe he maintains that it was broken into. At any rate, the four 
persons who entered tlie apartment were from the llussian Embassy or connected 
with it. The city police wanted to know from them just why they were there. 
They claimed immunity, being members' of the Embassy. No arrests were made. 
They were allowed to return to the Embassy. In the meantime, Gouzenko had 
been safe, secreted as he was in the other apartment. Later in the evening an- 
other visit was made to his apartment, but nothing came of it and Gouzenko asked 
the city police if they could put him in contact with the Royal Canadian Mounted 
Police. He said that he had information which he thought was of importance to 
Canada and, indeed, to his own country if it could be disclosed, and that he would 
like to give this information to the Government through the police. 

He was promised that he would l)e taken to the Mounted Police where he could 
tell his story. Later in the morning he was taken to the Mounted Police, and 
he gave a full statement, producing tlie documents that he had in his possession, 
and asked for protection for his life and the lives of his wife and little child. 
They were given protection by the police. 

The documents were then very carefully studied together with other informa- 
tion he gave. 

Let me repeat, from the outset I felt that the situation with which we were con- 
fronted was one that could not be viewed too circumspectly. I felt we must make 
sure what type of person Gouzenko was, and what the motive was that prompted 
his action. I have come to the conclusion, from the statement which he gave to 
the police, that his motives were just as he himself described them, a desire to 
expose a condition which he thought was intolerable and which was likely to 
work injury to our country and to his own country as well. To the police he 
made a very careful statement in which he said that he had been in Canada for 
a couple of years, had been immensely suri)rised when he came here to see the 
freedom of the people, the way in which democratic institutions worked in this 
country. He said that he had been very greatly impressed with the way in 
which general elections were conducted, the different political parties speaking 
freely in the open, having candidates who opposed one another and the like. 
It impressed him deeply in contrast with what he had seen in his own country. 
He said he felt that, having witnessed for 2 years what this country was doing to 
assist its ally with munitions, money, and food, and in every other way, and at 
the same time affording to himself and to others every facility that could be 
extended in the way of freedom, he could not stand it very much longer, and 
he had made up his mind that, regardless of what the consequences might be, 
even if it were life itself, he owed it to the people of this country and to his own 
people to reveal the condition of affairs as he had come to know it at first hand. 
And having made up his mind in this way, he tlien began to gather some of the 
documents which he felt would be absolutely convincing in themselves if made 
public. 

I wish the house to note that his actions corresponded with that profession. 
He did not come to the government in the first instance. He went to a news- 
diaper office, and he paid a second visit to a newspaixjr office with a view to having 
the documents published and having his story made public. He later came 
to the police to give them the full story, and the documents which were in his 
possession. 

One may take what view one wishes of Gouzenko. I have stated my impres- 
sions as gathered from what evidence has come before me. But what I attach 
importance to in speaking to the House tonight is not the individual and what 
he said but the documents which were produced. Some of these documents are 
in the Ivaud writing of some of the ijersous who have been examined by the 



INTERLOCKING SUBVERSION IN GOVERNMENT 1091 

Commission, while some are in the nature of transcriptions ; many of them are 
cipher messages that Imve been sent back and forth ; some are messages that 
have come from Britain to Canada and passed on from Canada to the U. S. S. R., 
and there is much tliat relates to plans and records that have to do with the 
manufacture of nmnitions, explosives, and the like. 

It is upon the documents which are in possession of the Government now, and 
which will be made public as the trials proceed, that such subsequent action as 
was taken by myself and my colleagues was based. We have not acted upon 
hearsay. We have taken the reports which have been made to us by the police, 
and which are verified and authenticated by the documents themselves. 

These documents disclose among other things that Canada was being made a 
base to secure information on matters of very great and grave concern to the 
United States and also to Great Britain ; that information was being sought 
through agents here with respect to many matters that were of the utmost con- 
cern to Canada, the United States and the United Kingdom. 

I siJeak of myself personally because I must take the main responsibility. In 
fact, I am prepared to take the whole responsibility if necessary for the steps 
that have been taken, though the Minister of Justice and myself were together 
in considering and dealing with the questions that had to be considered. There 
come times, however, in a government when, sooner or later, the decision as to 
what course is to be taken has to be made by the head of the administration. 

I realized at the outset that this was no small matter, not a domestic matter 
only, by any means. We could not ignore the evidence that there were in our 
public service a number of trusted employees who were giving information to 
agents of a foreign power to be of assistance to the foreign power and that it was 
clearly necessary that there should be an investigation. It was inevitable that 
an investigation would have repercussions, having regard to what might be re- 
vealed, in many parts of the world, and for that reason one had to consider other 
nations as well as one's own before taking a step that might come to be considered 
premature. 

I should perhaps have mentioned this as a central feature of the Gouzenko 
statement. He claimed that what was being created in Canada was a fifth col- 
umn ; that it was being created through Russian agents in contact with the mem- 
bers of the public service and others in this country and that it had extended 
very far ; that the infiltration of this effort had gone in very wide directions and 
for that reason there was the necessity for the completest investigation. I felt 
it was my duty, regardless of what might come, immediately to inform both the 
United States and the United Kingdom of what had been disclosed here and to 
let those two countries know of the Government's intention to have the matter 
investigated. 

My honorable friend, the leader of the opposition, asked me to inform the 
House tonight whether, when I visited the United States and the United King- 
dom, I informed tlie authorities there of what I have told the House this evening. 
I did. I felt my first duty was to visit our immediate neighbor, the United 
States, to see the President and let him know that there were certain matters 
being revealed to us here which caused me to feel that Canada might be being 
used as a base for the discovery and the imparting of information that was of 
concern to the United States, and I was most anxious to have the President know 
that we intended to have the whole matter fully investigated. 

Before I say anything further I think I ought to let the House know what 
was the kind of information that was in my possession at the time that I decided 
to visit the United States and Great Britain, and here again, so that I shall 
not be imparting any information that might bear on what is sub judice, I shall, 
I think, be safe if I take the statement which appears in the first interim report 
of the royal commission and quote what is set forth there. I should like to 
make it clear that it was during pretty much all of the month of September that 
the investigation was being made by the police. I was being informed of what 
was being brought to light, and pretty much the whole case as it has since been 
developed had at that time been worked out at least in outline by the Royal 
Canadian Mounted Police. The matters of which I had knowledge in this indirect 
way are pretty much the same as are set forth by the Commission from the 
documents before them. I quote from the first interim report of the Royal 
Commission : 

"As shown by these documents, the specified tasks committed to Colonel 
Zabotin were the following : 

"(1) As described in telegrams from 'The Director' at Moscow addressed to 
Colonel Zabotin under his cover name of 'Grant,' in August 1945. 



1092 INTERLOCKING SUBVERSION IN GOVERNMENT 

"(rr) The technological processes and methods employed by Canadians and 
the English for the production of explosives and chemical materials. 

"(6) Instructions as to which of the members of the staff of the military 
attache should contact particular Canadian agents and the suggestion of names 
of persons in the Department of National Defense for Naval Affairs who might 
act as agents. 

"(c) Information as to the transfer of the American troops from Europe to 
the United States and the Pacific also the army headquarters of the 9th army, 
the 3rd, 5th, 7th, 13 army corps, the 18th armoured division, the 2nd, 4th, 8th, 
28th, 30th, 44th, 45th, 104th infantry divisions and the 13th tank division, to- 
gether with the dates of their moves, the location of the army headquarters of 
the Sth and 16th armoured corps, the 20th and 80th infantry divisions, the 10th 
tank division and the location of the Brazilian infantry division. Whether or 
not there had been organized a staff for the American troops in Germany and, 
if so, its location and the name of the officer-in-command. 

"The location of the l.st parachute troops and the plans for their future use. 

"((Z) Instructions to take measures to obtain particulars as to the materials 
of which the atomic bomb is composed, its technological process and drawings. 

"(2) As described in writings under the hands of Zabotin, Motinov and Rogov, 
during the period March to August 1945. 

"(fl) To obtain from the national research council models of developed radar 
sets, photographs, technical data, periodic reports, characterizing the radar work 
carried on by the council and future developments planned by the council. 

"(b) Particulars of the explosives establishment at Valcartier and its work, 
including the obtaining of fornmlas of explosives and samples. 

"(c) A full report on the organization and personnel of the national research 
council 'Give more details of organization of research council. Manipulate so 
as to get to their leaders and find out what they do.' 

"(d) Particular work of specified employees of the research council. 

"(e) The obtaining of documents from the lil)rary of the national research 
council so that they might be photographed, with the expressed intention of 
ultimately obtaining the whole of the library of the national research council. 

"(f) Particulars as to tlie plant at Chalk river, Ontario, and the processing 
of uranium. 

"(g) The obtaining of a sample of uranium 235, with details as to the plant 
where it is produced. 

"(/) ) Specifications of the electro-projector of the 'V bomb. 

"(i) Research work being carried on with relation to explosive materials and 
artillery. 

"(;■) The obtaining of material on the American aeroplane radar locator type, 
navigation periscope. 

"(fc) A list of the army divisions of the Canadian Army which have returned 
from overseas and the names, or numbers, of the divisions which have been 
divided, or reshaped, or undergoing reshaping. 

"(/) The number of troops in the Canadian Army in the postwar period, to- 
gether with the system of its organization. 

"(«0 Information from the Department of Munitions and Supply of various 
kinds relating to guns, shells, small arms, anmuinition for small arms, arsenals, 
optical and radio appliances, automobiles and tanks, apparatus for chemical 
warfare, and particulars of plants producing same. 

"(h) Information as to electronic shells used by the American Navy. 

"(o) To endeavor to keep agents in government departments tlireatened with 
discharge as a result of shi'inkage in size of the departments, in order to main- 
tain their usefulr.ess for the future. 

"(p) Information with regard to depth bombs and double charge shells for 
cannon. 

"(q) Information as to telegrams passing into and out of the Department of 
External Affairs and the Office of the High Commissioner for the United Kingdom. 

"It must not be assumed tliat the above list is exhaustive, but it illustrates 
the nature of the objectives of these operations." 

The commissioners then make the following statement: 

"It has been stated to us by commission counsel that the method of presenta- 
tion of the evidence before us is with the object of ultimately establishing the 
identity of the greatest number of those persons who have acted as agents, hut 
the question of the relative imiwrtance of the above subject matters has not been 
dealt with to an extent where we are yet able to pronounce upon it. To proceed 
in any other manner might have been ijrejudicial to the ultimate attainment of 
the purposes of the investigation." 



INTERLOCKING SUBVERSION IN GOVERNMENT 1093 

I read tliat now because of another question which the leader of the opposi- 
tion asked me this afternoon to answer, namely, how far this espionage system 
extended. 

I should like my honorable friend to notice that commission counsel have at- 
tached particular importance to ultimately establishing the identity of the 
greatest number of those persons who have acted as agents. I shall return to that 
a little later, as one of the reasons why the commission have thought it desirable 
that certain persons should be kept incommunicado pending their interrogation 
and the taking of their evidence. It has been with a view to finding out in 
the most effective manner possible how far-reaching this particular infiltration 
has been. 

I could not very well leave Canada until the end of the debate on the address. 
It was the first session of the new Parliament ; there had been no division ; I 
had to make perfectly sure that the government was going to remain in office, 
so that I felt it advisable to wait until after the first division. However, before 
leaving I did call into my oflSce the leader of the opposition (Mr. Bracken), the 
leader of the CCF party (Mr. Coldwell) and the leader of the Social Credit party 
(Mr. Low) and told them individually one of the reasons why I was leaving at 
that time. The house will remember that Mr. Attlee had communicated with 
me somewhat earlier, asking me to come over for purposes of consultation. I 
had been obliged to reply that I could not leave at least until the session was 
under way ; but this matter coming up in the first month of the session made it 
important that I should not delay my departure longer. 

There was one other reason why I went at that particular time. Part of the 
information secured by the police was to the effect that a scientist who was quite 
high in his profession and very much trusted by the British Government ; who 
was a citizen of Britain but was engaged in research work in Canada ; who had 
perhaps as much knowledge as anyone of matters pertaining to the release of 
atomic energy and researches in that connection, was about to leave Canada ; 
that he had taken passage on a plane and would be arriving at a certain time 
in London, where he would make contact with the agent of a foreign power. 
Information of this kind cannot be easily trusted to telegraphic communication. 
I thought I should give to the British Government as full information as I could 
with i-egard to what we had ascertained. 

I left for Washington about the end of September. I called upon the Presi- 
dent at the White House and had a short talk with him before leaving for New 
York to catch the ship on which I was crossing to Britain. I arrived in London 
on a Sunday evening and immediately, on Mr. Attlee's invitation, spent the eve- 
ning with him at Chequers, where I told him of what had been discovered here. 
Later I had talks with Mr. Bevin, the foreign secretary, to whom I gave such in- 
formation as I thought the British Government might wish to have. As hon- 
orable members know, I returned later to Washington, in company with Mr. 
Attlee, where a conference took place with the President in respect of atomic 
energy, in connection with which a report has already been made. I then came 
back to Ottawa accompanied by Mr. Attlee and, after Mr. Attlee returned to Eng- 
land, took up anew the question into which I had been looking so anxiously 
before I went away. 

One question that undoubtedly presents itself to the minds of honorable mem- 
bers is why there should have been such a long delay in disclosing this condi- 
tion of affairs. Why was the Commission not appointed at an earlier date? 
Well, I think I have indicated enough to show that it would have been a very 
great and grave mistake to have taken any premature step in regard to the time 
at which the investigation should take place. The last thing this country would 
have wished to be responsible for was that in any way it had affected the rela- 
tions between any of the United Nations in a way that might prove prejudicial 
to all. Honorable members will recall that there was a meeting in London of 
the council of foreign ministers at which the British, American and U. S. S. R. 
foreign ministers were present. That particular meeting did not get very far. 
After it was over, there were recriminations of one kind and another. I think 
it would have been most unfortunate had these disclosures taken place while that 
meeting was being held. There were other meetings which would be held 
in the near future to consider. It was a question not only of what was the 
wisest step to take, but also of the best time at which to take it. 

Mr. Morris. Will you notice, Mr. Chairman, in the part of the ex- 
cerpt on Alger Hiss, the 1945 security memorandum there on the in- 



1094 INTERLOCKING SUBVERSION IN GOVERNMENT 

formation supplied to the security officers in the United States about 
Alger Hiss' relation ? Alger Hiss was then secretary to the then Secre- 
tary of State Stettinius — about his involvement in Soviet espionage. 
(The excerpt referred to above appears in the previous record at 
page 71 and is as follows:) 

Igor Gouzenko, former code clerk in the oflSce of Col. Nikolai Zabotin, Soviet 
Military Attache, Ottawa, Canada, when interviewed by a representative of this 
Bureau and officers of the Koyal Canadian Mounted Police, stated that he had 
been informed by Lieutenant Kulakov in the office of the Soviet Military Attache 
that the Soviets had an agent in the United States in May 1945, who was an 
assistant to the then Secretary of State, Edward R. Stettinius. 

In further reference to that particular line of inquiry, I would like 
to offer the following documents for the record. 

We have received from the United States Department of State, from 
Frances G. Knight, Assistant Deputy Administrator, a letter dated 
November 5, 1953, addressed to me as chief counsel of the subcommit- 
tee. It reads: 

In accordance with our telephone conversation, I am enclosing herewith for 
your files and records, a true copy of our communication with the Canadian 
Government and their reply in connection with your requested interview with 
Mr. Igor Gouzenko. 

I am also enclosing photostats of the newspaper articles reporting Gouzenko's 
willingness to talk to congressional committee representatives, and today's AP 
dispatch on the turndown which preceded an official communication to the 
Department. 

This communication from the Department to the Canadian Gov- 
ernment, referred to above, was transmitted on October 29, 1953 : 

The Secretary of State presents his compliments to His Excellency the Ambas- 
sador of Canada and has the honor to advise that the Department of State has 
been informed by Mr. Robert Morris, counsel for the Senate Internal Security 
Subcommittee, of his desire to interview Mr. Igor Gouzenko in Canada. Mr. 
Morris has further inquii-ed of the Department of State how such an interview 
could be arranged. He has been informed that his request would be submitted 
to the Government of Canada through its Embassy in Washington. 

Mr. Morris desires tlie Department to mention that he has noted the publicly 
expressed desire of Mr. Gouzenko to talk to the Senate Internal Security Sub- 
committee and that the chairman of this committee, Senator William E. Jenner, 
considers this offer to be valuable. 

It would be appreciated if the Department of State might be informed concern- 
ing the reply the Canadian Government desired to be made to Mr. Morris on this 
matter. 

The Canadian reply took this form : 

The Ambassador of Canada presents his compliments to the Secretary of State 
and, in reply to his note of October 29 transmitting a request from Mr. Robert 
Morris, counsel for the Senate Internal Security Subcommittee to interview Mr. 
Igor Gouzenko in Canada, has the honor to state as follows : 

"1. Apparently Mr. Morris' wish to interview Mr. Gouzenko arises from the 
fact as stated in your note of October 29 that he has 'noted the publicly expressed 
desire of Mr. Gouzenko to talk to the Senate Internal Security Subcommittee.' 
This presumably refers to a statement attributed to Mr. Gouzenko in an article 
in the Chicago Tribune that he had some further information. 

"2. Before this request had been received from Mr. aiorris, Mr. Gouzenko had 
already been questioned concerning his alleged statement since, if there had been 
any additional information, it should have been given to the Canadian authori- 
ties. Mr. (Jouzenko, however, denies that he has any further information beyond 
what was reported in the Royal Commission's report. 

"3. Mr. Gouzenko states that he has been misquoted by the Chicago Tribune 
and denies l)oth the alleged remarks concerning additional information and the 
alleged criticism of the handling of the case or the use of the information derived 
from it. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1095 

"4. All information connected with this case which could be of value to the 
United States Government was promptly transmitted without delay as soon as 
it was available. 

"5. Under these circumstances, it is presumed that the reasons for Mr. Morris' 
request to interview Mr. Gouzeuko have disappeared." 

The Canadian Embassy. 
Washington, D. C, November 5, 1953. 

Mr. Chairman, I would like to point out that we have introduced 
into our record information supplied to this Government that did not 
appear in the Royal Commission's report. 

I would like to submit for the consideration of the subcommittee 
that the subcommittee may want to take some kind of further action 
in connection with the state of facts presented. 

The Chairman. In other words, Mr. Morris, is it not correct that 
our committee already has evidence that is not contained in the 
Canadian report? 

Mr. Morris. That is right. With particularity, I might men- 
tion 

The Chairman. And yet the Canadian Government says that re- 
port has all the information in it? 

Mr. Morris. There would seem to be a conflict. 

The Chairman. We will take that up with the committee. 

Mr. Morris. Mr. Chairman, Mr. Mandel has here quite a few docu- 
ments taken from the files of Harry Dexter White. They all should 
be of great interest to this subcommittee in connection with this par- 
ticular hearing. Eatlier than take up the time of the subcommittee 
in submitting these things each individually, I would like to have 
them inserted into the record at this time. Many of them you will 
note, however, Mr. Chairman, have been inserted in the record on July 
8, 1953. They are here in galley form. In other words, they were 
put into the record, but because of the delay in printing these records, 
the Government Printing Office has as yet not published these. May I 
suggest that they be put into the record at this time, instead of at the 
place, or possibly, if you wish, in addition to the place, where they 
originally were intended, back on July 8. 

The Chairman. They certainly have a proper place in this record. 
So they may go into the record and become a part of the record. 

(The documents referred to follow:) 

United States Civil Service Commission, 

Service Record Division, 
WasJiington 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 presented to appointing officers for their inspection. 
Name : White, Harry D. 
Date of birth : October 29, 1892. 

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. 



1096 



INTERLOCKING SUBVERSION IN GOVERNMENT 



Effective date 



Nature of action 



Position, grade, salary, etc. 



June 20. 1934 
Oct. 4, 19.34 
Oct. 5, 1934 



Oct. 31,1934 
Nov. 1,1934 



Apr. 1. 1936 
July 1, 1937 
Mar. 25, 1938 



Jan. 

Mar. 

Aug. 



1, 1939 
1,1940 
5, 1941 



Jan. 1, 1942 

Jan. 23,1945 

Jan. 24,1945 

Apr. 30,1946 



E xcepted appointment 

Resignation without prejudice. 
Excepted appointment (Tariff 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 19.34). 
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, 
Office of Secretary, Washington, D. C. 

Special Expert, Chief Economic Analyst, P-6, 
$5,000 per annum, U. S. Tariff Cornmission, 
Washington, D. C. 

Principal Economic Analyst, $5,600 per annum, 
Treasury, Division of Research and Statistics, 
Washington, D. C. 

Assistant Director, $6,500 per annum. 

Assistant Director, P-7, $7,500 per annum. 

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. C. 



Assistant Secretary of the Treasury, $9,000 per 
annum, Treasury, Office of the Secretary, 
Washington, D. C. 



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 demo- 
tions, since Federal agencies are not required to report all such actions to the 
Commission. 



Treasury I^epartment, 

Telegraph Office, 
Appleton, Wis., June 9, 19S4- 
Dr. Jacob Vixeb, 

Office of the Secretary, Treasury Department: 

Will be very glad to come and work with you. 

H. D. White. 



Treasury Department 



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 
Fnnd, effective as of March 25, 1938. 

The positicm of Director of Monetary Research was established by Treasury 
Department Order No. 18, approved by the Secretary March 25, 1938. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1097 

July 1, 1935. 
Mr. Harry D. White, 

Prin. Economic Analyst at $5,600 per annum, EBGSR, Division of Research 
d Statistics. 

Sir : By direction of the Secretary, your appointment for emergency worli has 
l)een continued without change in designation or salary, elTective July 1, lOoo, for 
such period of time as your services may be required on such worii 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. 

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 tiie rate of seventy-five hundred dollars per annum, payable 
from the appropriation. "Exchange Stabilization Fund." 
Very truly yours, 

(Signed) H. Morgenthatt, Jr., 

Secretary of the Treasury. 



October 1, 1936. 
Mr. Harry 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, "Expenses, 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 tlie Secretary : 
Very truly yours, 

(Signed) Wm. H. McReynolds, 
Administrative Assistant to the Secretary. 
Oath : 



I 



32918° — 54— pt. IG- 



1098 



INTERLOCKING SUBVERSION IN GOVERNMENT 





tiofi orputpamfoff-ef^si^^^W well! 

the  office 'on/'9^MM^^<Wk 







December 28, 1938. 
Mr. Haery D. White, 

Director of Monetary Research, Treasury Department. 
Sir : Tour 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. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1099 

Makch 25, 1938. 
Mr. Harky D. White, 

Washinffto7i, D. C. 

Sir : You are hereby appointed effective March 25, 1938, Director of Monetary 
Research in the oltice of the Secretary, with compensation at the rate of $8,000 
per annum, payable from the appropriation, "Exchange, Stabilization Fund." 
Very truly yours, 

(Signed) H. Morgenthau, Jr., 

Secretary of the Treasury. 

Oath : This is to be carried as a transfer ; oath was not taken. 



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. Morgenthatj, Jr., 

Secretary of the Treasury. 

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 perforin 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. 
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. 



[From the Federal Register, Vol. G, No. 149, August 1, 1941, pp. 3S23-3824] 

The President 

Executive Order 

establishing the economic defense board 

By virtue of the authority vested in me by the Constitution and statutes of the 
United States, by virtue of the 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 : 



1100 INTERLOCKING SUBVERSION IN GOVERNMENT 1 

1. The term "economic defense," whenever used in this Order, means the con- 
duct, in the interest of national defense, of international economic activities in- 
cludins; 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 coimtries, the international aspects of patents, international com- 
munications pertaining to commerce, and other foreign economic matters. 

2. There is hereby established an Eccmomic 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, the 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. 
F^ach 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 pei'formed 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 sliall conform to the policies formulated or 
approved l)y 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. 

6. To facilitate unity of action and the maximum 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 Chaii'man, to i-epresent 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 IMaritime Commission, the United States Tariff Commission, the Federal 
Trade Commissi<m. 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 I'roduction 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 



INTERLOCKING SUBVERSION IN GOVERNMENT 1101 

Defense Aid Reports, the Coordinator of Information, and siicli additional de- 
partments and agencies as the Chairman may from time to time determine. The 
Chairman shall provide for the s.vstematic 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 expedite the work of the 
Board. He is further authorized, within the limits of such funds as may be 
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, apijoint an executive officer. 

Franklin D. Roosevelt. 

The White House, 

July 30, 191,1. 

[No. 8839] 
[F. R. Doc. 41-5597 ; Filed, July 31, 1941 ; 11 : 20 a. m.] 

August 6, 1941. 
Hon. Hexry C. [sic] Wallace, 

Chairman, Economic Defense Board, 

Washington, D. C. 
My Dear Me. Chaikmax : 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. 



Department of -State, 
Washington, Heptemtyer SO, lO'/l. 
Jlr. Harry D. White, 

Assistant Secretary of the Treasury, 

Treasury Department, Washington, 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 i.s consequently effected in accordance with the letter of the SecTetary 
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 
States to Cuba, who will introduce you to the appropriate Cuban olficials. 
The mission will be responsible to Ambassador Messersmith, and you should 
obtain 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 Secret a r if 
(For the Secretary of State). 



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. 



1102 INTERLOCKING SUBVERSION IN GOVERNMENT # 

8743, as an assistant to the Secretary and Director of Monetary Research, P-8, 
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. 



Treasury Depaetmejtt 
interoffice communication 



February 25, 1948. 



To : Dr. Harry Vv^iite. 

From : Secretary Morgenthau. 

Effective this date, I would like you to take supervision over and assume fulU 
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 likely 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 
with 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]. 



United States Tueasury Department, Washington, D. C. 

PERSONNEL recommendation, PAGE 1G604 

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 

Bureau or Div. : Div. of Monetary Research 

Headquarters : Washington, 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 Division Head). 



June 17, 1943. 
The honorable the Secretary 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. 



^ 



INTERLOCKING SUBVERSION IN GOVERNMENT 1103 

May 31, 1943. 



Hon. Reid F. Murray, 

House of Representatives, 

Washini/ton, 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 from that institution. He also received the degree of 
doctor of philosophy from Harvard University. 

Prior to entering the Federal service, INIr. White served 6 years as an instructor 
in economics at Harvard University, Cambridge, INIass., and 2 years as professor 
of economics at Lawrence College in Wisconsin. 

Mr. White was appointed an ec<momic analyst in the Office of the Secretary of 
tlie 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. 193S, when he became Director of 
^klonetary 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 inter- 
departmental boards and committees. 
Very truly yours, 

(Signed) W. N. Thompson, 
Administrative Assistant to the Secretary. 



Hon. Frances P. Bolton, July 17, 1944. 

Committee on Foreign Affairs, 

House of Representatires, Washington, D. C. 

My Dear Mrs. 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 frcmi 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 OflSce 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 Depart- 
ment. He was promoted to Assistant Director of Research and Statistics, effec- 
tive October 6, 1936, and held that position until March 2.5, 1938, when he became 
Director of Monetary Research. On August 30, 1941, INIr. 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 



1104 INTERLOCKING SUBVERSION IN GOVERNIVIENT 

The Price Administration Committee 
The Committee on Foreign Commerce Regulations 
The Interdepartmental Committee on Post- War Economic Problems 
The < 'ommittee 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 Ai-eas Committee 
The O. S. S. Advisory Committee. 
Tlie 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 Affaii'S. 

Sincerely yours, (Signed) Charles S.Bell, 

Administrative Assistant to the Secretary. 



The White House, 

, 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 efr 
fective November 30, 1944. 



The President, November 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. AVhite 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, 

(Signed) H. Morgenthau, Jr. 

November 28, 1944, 4 : 30 p. m. 



Treasury Department, 
Washington, Decetnber 1, IS'i't. 

treasury 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. 



January 26, 1945. 
treasury depajrtment 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 office. 



INTERLOCKING SUBVERSION IN GOVERNMENT 



1105 



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. 
Reasons: To accept a presidential appointment as Assistant Secretary. 
|0 Respectfully, 

(Signed) Harry D. White. 




.«;AftS'^«'i«^«ff!5 -^soagwr T^.rt^^ ds-^taa -^ffi^^ 'AWZivi^^i^Xi^l^/^^ ^"^!^^^ 








ibuirc«uwO«wO 



i 



3v<^t; and ^d^^ mil well aiK3 faithmlly discharge the clucks of 




1106 



INTERLOCKING SUBVERSION IN GOVERNMENT 



April 30, 1946. 
Hon. Harry D. White, 

Assistcmt Secretary of the Treasury, 

Washington, D. O. 

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 you 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. Truman. 



Executive Nominations Confirmed by the Senate February 6, 1946 

international monetary fund and international bank for reconstruction 

and development 

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.) 



Treasury Department, 
Washington, April 30, 1946. 
The President, 

77(6 White House. 

My Dear Mr. President : On the 6th of May the International Monetary Fund 
begins its work. I therefore tender my resignation as A&'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. 

Mr. Morris Mr. Chairman, in the event that all of the documents 
that I have described have not been received by yon into the record, 
will you receive all of those documents which I have offered for the 
record during the course of these hearings? Will you order them into 
the record at this time ? 

The Chairman. I will order them into the record. They may 
become a part of the record. 

If there are no further witnesses 

Senator Hendrickson. Mr. Chairman, in order that this record 
may be crystal clear, I hope the subcommittee will give some thought 
to the possibility of inviting the former President of the United States 
to appear before this subcommittee. 

The Chairman. Of course, I cannot speak for the committee, 
Senator Hendrickson. You know how our connuittee operates. We 
have tried to proceed in a very careful manner. Our main interest 
has been to build up a record on truth and facts and evidence. It is 
apparent to me from the record made here today that there is no 



» 



INTERLOCKING SUBVERSION IN GOVERNMENT 1107 

question about it that this derogatory information concerninfv Harry 
Dexter White lias been communicated to the President of the United 
States. I cannot speak for the committee. I can only speak as an 
individual. I see no reason for calling the former President, 
Harry Truman, before this committee, because the record speaks for 
itself. 

Senator Hendrickson. I was not suggesting calling him. I was 
suggesting inviting him to appear. 

The Chairman. 1 do not see any reason to invite him at this time. 
The record has been made. You have heard here today General 
Vaughan testify that he would not deny that, if the records had come 
from the Attorney General's office to his office, he had delivered them 
to the President of the United States. If he did not deliver them that 
day, he said he would have delivered them the next morning. 

You have also heard Mr. Caudle testify that he knew of the existence 
of this record. 

JNIr. Brownell has made his statements about this record. There- 
fore, I think it is very evident and there is no doubt, it is very apparent 
to me from the evidence heard by our committee and placed in the 
record today, that this information on Harry Dexter White was de- 
livered to the President of the United States. Our committee is con- 
cerned, as it has been in the past several months, with subversion, the 
working into the Government of these Communists, not only Harry 
Dexter White. He is only one of them. We have named nine here 
today. 

I can take it up with the committee as to what they want to do, but 
as an individual I see no reason for calling Harry Truman before 
this committee, because the record speaks for itself. 

Senator Hendrickson. I am sure the Chair will give the committee 
a chance to speak on the subject. 

The Chairman. We will call a committee meeting. 

Mr. Morris. Mr. Chairman, there is one thing you will note in the 
record, that we have covered the testimony of Mr. Caudle, the testi- 
mony of General Vaughan, a statement from IMr. Byrnes, and a state- 
ment from Mr. Brownell. We have been promised a further statement 
from JNIr. Brownell which will be put into the record in some form, 
in the form of a personal appearance of somebody or in the form of 
a formally transmitted statement. 

The Chairman. There are no further witnesses, and the committee 
will stand adjourned. 

(Whereui:)on, at 3: 45 p. m., the subcommittee adjourned.) 



inteelockinct subversion in government 

departments 



TUESDAY, NOVEMBEB 17, 1953 



United States Senate, 
Subcommittee To Investigate the Administration 
OF THE Internal Security Act and Other Internal, 

Security Laws of the Committee on the Judiciary, 

Washington^ D. C. 

The subcommittee met at 2 : 30 p. m., pursuant to call, in Room 318, 
Senate Office Builclinji, Senator William E. Jenner (chairman of the 
subcommittee) presiding. 

Present: Senators Jenner (presiding), Butler (Maryland), John- 
ston, and McClellan. 

Present also : Senators Wiley, Knowland, Williams, and Dirksen. 

Present also : Robert Morris, chief counsel ; J. G. Sourwine, com- 
mittee counsel; Benjamin Mandel, research director; and Robert Mc- 
Manus, professional staff member. 

The Chairman. The committee will come to order. May we have 
order, please. 

I am happy that so many of the members of this committee could 
be present today. 

Let me state at the outset that the Internal Security Subcommittee 
has been holding hearings during the last 3 years on subversion in 
the LTnited States Government and among United States citizens in 
international agencies. Since April of this past year, the subcom- 
mittee has been concentrating on the inquiry into the interlocking 
subversion in Government departments, and has heard more than 30 
witnesses whom the evidence amply shows to have been actively en- 
gaf^ed in the Communist underground, and many even in Soviet 
espionage. These i)eople held high positions in Government. They 
were closely and intimately associated with each other. 

The details of their conspiracy have been spread over the record 
of this and other committees. It was not a question of one man 
or even of isolated cases, but rather was a constant and monstrous 
conspiracy that had a great effect in changing the course of history. 

The subcommittee sought to determine precisely what aspect of 
the loyalty machinery allowed so many Soviet agents to remain in 
high positions of influence in the United States in the face of 
impressive derogatory security information. 

1109 



1110 INTERLOCKING SUBVERSION IN GOVERNMENT 

We unanimously concluded in our interim report of July 30, 1953 
that, and I quote from that report: 

There is ample evidence that the Federal Bureau of Investigation and other 
agencies learned the underlying fact of the Communist conspiracy, and time 
and again performed their duty and notified the proper administrative agencies 
of this information. 

The FBI had three sources in 1945 that showed that Alger Hiss 
was an undercover Communist, and yet Hiss stayed on all through 
1946 in a position where he had access to almost every top level 
military, political, and economic secret of our Government. 

The FBI had evidence that many other Government employees 
were active in the Soviet underground, including Harold Glasser, 
Nathan Gregory Silvermaster, Edward J. Fitzgerafd, Harry Magdoff, 
and others. These people stayed in their jobs receiving promotions 
and influenced policy for several years after impressive information 
had been marshalled, Ave concluded. 

Since its report, the subcommittee has been working with partic- 
ularity on the cases of nine individuals. They are Alger Hiss, 
Harold Glasser, Victor Perlo, Frank Coe, Maurice Halperin, Edward 
Fitzgerald, Harry Magdoff, Irving Kaplan, and Harry Dexter 
White. _ 

Hearings were held last week wherein certain witnesses were asked 
what they knew about the distribution of FBI security memoranda 
on Harry Dexter White. 

Today the firet witness will be Attorney General Herbert Brownell, 
Jr. 

Mr. Brownell, will you stand and be sworn to testify? Do you 
SAvear that the testimony given in this hearing will be the truth, the 
whole truth, and nothing but the truth, so help you God ? 

Attorney General Brownell. I do. 

The Chairman. You may be seated, Mr. Brownell. Will you state 
your full name for our committee record? 

TESTIMONY OF HON. HERBERT BROWNELL, JR., ATTORNEY GEN- 
ERAL OF THE UNITED STATES, ACCOMPANIED BY DEPUTY 
ATTORNEY GENERAL WILLIAM P. ROGERS AND ASSISTANT 
ATTORNEY GENERAL WARREN OLNEY III 

Attorney General Brownell. Herbert Brownell, Jr. 

The Chairman. Where do you reside, Mr. Brownell? 

Attorney General Brownell. 4355 Forest Lane, Washington, D. C. 

The Chairman. And what is your profession or position at this 
time in Government ? 

Attorney General Brownell. Attorney General. 

The Chairman. Mr. Morris, you mav ]iroceed with the questioning 
of the witness. May I ask first, Mr. Brownell, do you have a pre- 
pared statement that you want to make? 

Attorney General Brownell. I do, Mr. Chairman. 

The Chairman. Are there copies of this statement that you propose 
to read for distribution to the committee? 

Attorney General Brownell. Yes. 

The Chairman. Will you proceed with your prepared statement. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1111 

Attorney General Browxell. ISIr. Chairman and gentlemen of the 
subcommittee, this suljconnnittee has been holding a series of hearings 
for the purpose of exposing the plans of Communist agents to in- 
filtrate the Government of the ITnited States. The work of this 
subcommittee has documented with great care the result of the very 
successful Connnunist espionage penetration in our Government dur- 
ing World AVar II and thereafter. Later on I will have certain 
recommendations for legislation which I would like to su1)mit for 
the consideration of the subcommittee. I feel confident that as a 
result of the work of this subcommittee, much constructive legisla- 
tion will result. 

The executive department of the Government which is headed by 
the President, and of which the Department of Justice is part, has 
been concerned since we took office with cleaning out the Govern- 
ment. One of the most important and- vital problems is to remove 
all persons of doubtful loyalty and, most important, to prevent any 
further Communist infiltration into the Government of the United 
States. 

On November 6 in Chicago, I made a speech which was one of a 
number of speeches and magazine articles in which I publicly dis- 
cussed the problem of Communist infiltration in Government and 
the steps taken by the Eisenhower administration to meet that prob- 
lem. In that speech I referred to the case of Harry Dexter White 
and the manner in which it was treated by the prior administration 
to illustrate how successful espionage agents had been in penetrat- 
ing our Government at that time and how lax our Government was 
at that time in meeting such a grave problem. This afternoon I 
want to discuss the case of Harry Dexter White and the manner in 
which it was handled by the Truman administration on the basis 
of established facts and the records in the Department of Justice. 

Before I do that, however, I want to make certain preliminary 
remarks. An inference has been drawn in some quarters from my 
speech which I think is unwarranted. By lifting certain sentences 
out of context it has been said that I implied the possibility that 
the former President of the United States was disloyal. I intended 
no such inference to be drawn. In order to point out that I intended 
no such inference to be drawn, I specifically said that I believed 
that the disregard of the evidence in the White case was — 

because of the unwillingness of the non-Communists in responsible positions to 
face the facts and a pei'sistent delusion that communismi in the Government of 
the United States was only a red herring. 

In another part of the speech I also stated : 

The manner in which the established facts concerning White's disloyalty 
were disregarded is typical of the blindness which inflicted the former ad- 
ministration on this matter. 

When I assumed the office of Attorney General, I promised to 
expose evidence of Communist infiltration in our Government and to 
expose corruption, with evenhanded justice. I intend to continue to 
do so. Some people won't like it, but I shall not be deterred from 
carrying out my dut}' by personal abuse. 

When this subcommittee completes its investigation, I believe that 
you will conclude, as I did, that there was an unwillingness on the 
part of Mr. Truman and others around him to face the facts and a 



1112 INTERLOCKING SUBVERSION IN GOVERNMENT 

persistent delusion that Communist espionage in high places in our 
Government was a red herring. And I believe you will conclude that 
this attitude, this delusion, may have resulted in great harm to our 
Nation. 

Tlie "V\Tiite case seemed to me to be of such vital importance that 
I believed the public was entitled to know what safeguards were 
taken — once our Government was alerted to the two spy rings operat- 
ing within our own Government — to protect the national security. 

Of course, if the basic facts of these two spy rings had not been 
well established by previous court procedures and by congi-essional 
committees, I would not have proceeded as I did. I fully realize 
the grave responsibility which I have as chief law-enforcement officer 
of this Nation not to use confidential reports in my possession to dis- 
close charges against individuals except through established court pro- 
cedures. Those of us in the X)epartment of Justice will never violate 
that basic concept of our American jurisprudence. 

But the White case, of course, is not that situation. The basic facts 
of the two spy rings which existed in the Government at that time 
have been fully exposed in court and before congressional committees. 
This subcommittee recently published a very excellent re])ort docu- 
menting those facts. The only disclosure which I made from our 
records, and I believe it is the type of thing that the public is entitled 
to know about, is that the Truman administration was put on notice 
at least as early as December 1945, that there were two spy rings 
operating within our Government. And, as I see it, now that this 
fact has been established, I believe the public is entitled to know 
what safeguards the Truman administration established to protect 
the national security. 

In considering the facts in this case it is well to keep in mind 
that the matter to be decided in January and February of 1946 did 
not relate to criminal proceedings in court. It was not a question 
wdiether White could at that time have been formally charged before 
a grand jury with espionage. The matter to be determined by Mr, 
Truman and his associates was whether Harry Dexter White should 
be advanced to a post of high honor, great trust, and responsibility 
and of vital importance to the security of our country. If there was 
solid evidence at that time establishing that White was engaged in 
espionage activity, certainly no one would contend that stmnd and 
proper administration required his fidvancement or even continuance 
in Government service simply because a criminal conviction could 
not be obtained. 

White entered upon his duties and assumed the office of Executive 
Director for the United States in the International Monetary Fund 
on May 1, 1946. What was known at the White House of his espion- 
age activities prior to that date ? 

On December 4, 1945, the FBI transmitted to Brig. Gen. Harry H. 
Vaughan, military aide to the President, a report on the general sub- 
ject of Soviet espionage in the United States. I referred to this in my 
speech at the first report. This was a secret and highly important 
report of some 71 pages. It covered the entire subject of Soviet 
espionage in this country both before, during, and after World War 
II. It named many names and described numerous Soviet espionage 
organizations. Harry Dexter White and the espionage ring of which 
he was a part were among those referred to in this report. The index 



INTERLOCKING SUBVERSION IN GOVERNMENT 1113 

list refers to his activities in three different places. This report, as 
niifrht be expected from its general character, summarizes White's 
espionage activities in abbreviated form, but no reasonable person can 
deny that that summary, brief though it may be, constituted adequate 
warning to anyone ^A'ho read it of the extreme danger to the security of 
the country in appointing White to the International Monetary Fund 
or continuing him in Government in any capacity. 

As the subcomittee knows, copies of this report were sent to a num- 
ber of Cabinet officers and high officials in the Truman administration 
including the Attorney General. It would be difficult to understand 
how under any circumstances a document upon so delicate and danger- 
ous a subject would not have been brought to Mr. Truman's attention 
by at least one of his associates. 

But in addition to that fact, I have here a letter from J. Edgar 
Hoover to General Vaughan a month before that, dated November 8, 
1945. 

As you know. General Vaughan has testified before this subcom- 
mittee that by arrangement with Mr. Truman, when the FBI had 
information which it deemed important for the President to know 
about, it sent such information to him — to Vaughan. Vaughan testi- 
fied that he knew that any such report which came to him was delivered 
to the President. 

The letter I hold in my hand is marked "Top Secret." I have 
declassified it and will make it public because it does not reveal any 
security information which would now be damaging. Because it was 
classified "Top Secret," it would have received very special handling 
that all such documents must receive. If this letter did not come to 
Mr. Truman's attention, then it would be a most serious dereliction of 
duty on the part of those who handled it. 

It is a document of historical importance and I therefore, with your 
permission, will quote it in full : 

November 8, 1945. 
(Top secret by special messenger) 

Declassified H. B. November 16, 1953. 

Brig. Gen. Harry Hawkins Vaughan, 
Military Aide to the President, 

The White House, Washington, D. C. 

Dear General Vaughan : As a result of the Bureau's investigative operations, 
information has been recently developed from a highly confidential source indi- 
cating that a number of persons emiTloyed by the Government of the United 
States have been furnishing data and information to persons outside the Federal 
Government, who are in turn transmitting this information to espionage agents 
of the Soviet Government. At the present time it is impossible to determine 
exactly how many of these people had actual knowledge of the disposition being 
made of the information they were transmitting. The investigation, however, 
at this point has indicated that the persons named hereinafter were actually 
the source from which information passing through the Soviet espionage system 
was being obtained, and I am continuing vigorous investigation for the purpose 
of establishing the degree and nature of the complicity of these people in this 
espionage ring. 

The Bureau's information at this time indicates that the following persons 
were participants in this operation or were utilized by principals in this ring 
for the purpose of obtaining data in which the Soviet is interested : 

Dr. Gregory Silvermaster, a longtime employee of the Department of Agriculture. 
Harry Dexter White, As.sistant to the Secretary of the Treasury. 
George Silverman, formerly employed by the Railroad Retirement Board, and 
now reportedly in the War Department. 

32918°— 54— pt. 16 4 



1114 INTERLOCKING SUBVERSION IN GOVERNMENT 

Lauchlin Currie, former Administrative Assistant to the late President Roosevelt. 
Victor Perlo, formerly with the War Production Board and the Foreign Economic 

Administration. 
Donald ^^'heeler, formerly with the Office of Strategic Services. 
Maj. Dnncan Lee, Office of Strategic Services. 
Julius Joseph, Office of Strategic Services. 
Helen Tenney, Office of Strategic Services. 
Maurice Ilalperin, Office of Strategic Services. 
Charles Kramer, formerly associated with Senator Kilgore. 
Capt. William Ludwig Ullman, United States Army Air Corps. 

Lt. Col. John H. Reynolds, of the United States Army, a former contact of 
Gaili Ovakimian, former head of the Soviet Secret Intelligence (NKVD) in 
New York, is also apparently involved in the Soviet espionage activities stemming 
from Washington, D. C. 

In addition to the foregoing group in the Government, it appears at this time 
that Mary Price, formerly secretary to Walter Lippniann, the newspaper 
columnist, and presently publicity manager of the United Office and Professional 
Workers of America, CIO, is also associated with the foregoing group. 

The Government documents were furnished to Gregory Silvermaster, who 
thereafter photographed them and tui-ned over the undeveloped, but exposed, 
film to a contact of the Soviets in either Washington, D. C, or New York City. 
In the past, it is reported, the contact man made trips to Washington, D. C., 
once every 2 weeks and would pick up on such occasions an average of 40 rolls of 
3.")-mlllimeter film. 

Investigation of this matter is being pushed vigorously, but I thought that 
the President and you would be interested in having the foregoing preliminary 
data innnediately. 

With expressions of my highest esteem and best regards, 
Sincerely yours, 

J. Edgar Hoover. 

It would be difRciilt to believe under any circumstances that so im- 
portant a document upon so delicate and dangerous a subject would 
not have been brought to Mr. Truman's attention by at least one of 
his associates. 

It is a blunt fact from which there is no escape that, in the teeth 
of the November 8 warning from the FBI, the developing evidence 
indicated a substantial spy ring operating within the Government, 
and involving Harry Dexter White and the documented report de- 
livered to the White House on December 4, some 6 weeks later Presi- 
dent Truman, on January 23, 1946, publicly announced his nomina- 
tion of Harry Dexter White for appointment to the International 
JNIonetary Fund. I just do not understand this. It still seems com- 
pletely incredible to me. 

But the matter does not end there. Because of this development the 
FBI compiled a special report devoted exclusively to Harry Dexter 
'\Aniite and his espionage activities and delivered it, together with a 
cov3ring letter, by special messenger on February 4. 1946, to General 
Vaughan for the attention of the President, to the Attorney General, 
Tom Clark, and to Secretary of State James Byrnes. This is the 
second report mentioned in my S]5eech. 

Secretary of State James F. Byrnes, who received a duplicate re- 
port and covering letter on the same da}', wrote the President on 
February 5, 1946 as follows : 

The enclosed letter addressed to Mr. Frederick Lyon of this Department by 
Mr. J. Edgar Hoover, and the enclosures referring to Harry Dexter White, I 
deem of such importance that I think you should read them. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1115 

I \Yill now read into the record the FBI letter, now officiall}^ de- 
classified, transmitting the White report : 

February 1, 1946. 
(Personal and conlidential by special messenger) 

Brig. Gen. Harry Hawkins Vaughan, 

Military Aide to the I'resident, 

The White House, Washington, D. C. 

Dkar General Vaughan : As of interest to tlie President and yon, I am at- 
tathing a detailed memorandum hereto concerning Harry Dexter White, Assist- 
ant Secretary of the United States Treasury Department. 

As you are aware, the name of Harry Dexter White has been sent to Congress 
by the President for confirmation of his appointment as 1 of the 2 United States 
delegates on the International Monetary Fund under the Bretton Woods agree- 
ment. In view of this fact, the interest expressed by the President and you in 
matters of this nature, and the seriousness of the chai'ges against White in the 
attachment, I have made every effort in px'eparing this memorandum to cover 
all possible ramifications. As will be observed, information has come to the 
attention of this Bureau charging White as being a valuable adjunct to an 
underground Soviet espionage organization operating in Washington, D. C. 
Material which came into his possession as a result of his official capacity 
allegedly was made available through intermediaries to Nathan Gregory Silver- 
master, his wife, Helen Witte Silvermaster, and William Ludwig Ullmann. Both 
Silvermaster and Ullmann ai-e employees of the United States Treasury Depart- 
ment, reportedly directly under the supervision of White. 

The information and documents originating in the Ti'easury Department were 
either passed on in substance or photographed by Ullmann in a well-equipped lab- 
oratory in the basement of the Silvermaster home. Following this step, the 
material was taken to New York City by courier and made available to Jacob M. 
Golos, until the time of his death on November 27, 1943. Gplos, a known Soviet 
agent, delivered this material to an individual tentatively identified as Gaik 
Ovakimian. Ovakimian, you will recall, was arrested some years ago as an un- 
registered agent of the Soviet Government and subsequently, by special arrange- 
ments witli the Department of State, was permitted to return to the U. S. S. R. 

After the departure of Gaik Ovakimian, Golos delivered his material to an in- 
dividual who has been tentatively identified 

here a name is deleted for security purposes. 

Sul)sequent to the death of Golos, the courier handling material re- 
ceived from the Silvermasters and Ullman delivered it through an unidentified 
individual to Anatole Borisovich Gromov who until December 7, 1945, was as- 
signed as First Secretary of the Soviet Embassy, Washington, D. C, when he re- 
turned to the U. S. S. R. Gromov had previously been under suspicion as the 
successor to Vassili Zubilin, reported head of the NKVD in North America, who 
returned to Moscow in the late summer of 1944. This whole network has been 
under intensive investigation since November 1945, and it is the results of these 
efforts that I am now able to make available to you. 

I also feel that it is incumbent upon me at this time to bring to your attention 
an additional factor which has originated with sources available to this Bureau 
in Canada. It is reported that the British and Canadian delegates to the Inter- 
national Monetary Fund may possibly nominate and support White for the post of 
president of the International Bank, or as executive director of the International 
Monetary Fund. The conclusion is expressed that assuming this backing is forth- 
coming and the United States acquiescence, if not concurrence, resulting. White's 
nomination to this highly important post would be assured. It is further com- 
mented by my Canadian source that if White is placed in either of these positions, 
he would have the power to influence to a great degree deliberations on all inter- 
national financial arrangements. 

This source, which is apparently aware of at least some of the charges incor- 
ported in the attached memorandum against White, commented that the loyalty 
of White must be assured, pai'ticularly in view of the fact that the U. S. S. R. had 
not ratified the Bretton Woods agreement. Fear was expressed that facts might 
come to light in the future throwing some sinister accusations at White 
and thereby jeopardize the successful operation of these imjjortant international 
financial institutions. 



1116 INTERLOCKING SUBVERSION IN GOVERNMENT 

I thought you would be particularly interested iu the above comments, wiiich 
originated with sources high placed iu the Canadian Govermeut, on the sul^ject 
at hand. 

With expressions of my highest esteem, 

Sincerely yours, J. Edgar Hoover. 

This second FBI report cannot, as I stated in my Chicago speech, be 
made public without jeopardizins; confidential sources of information 
and techniques of intelligence operations. That is a firm policy of this 
administration. We will never impair the most important work of the 
FBI by making public FI'>I rejjorts. 

However, the essential facts may be disclosed to this subcommittee. 

At the outset, the purpose of the report is stated in the following 
language : 

The purpose of this memorandum is to relate all of the information available 
at this time concerning Harry Dexter White, his activities and contacts in 
order that an overall picture may be available for review, action, or future 
reference. This information has been received from numerous confidential 
sources whose reliability has been established either by inquiry or long-estab- 
lished observation and evaluation. In no instance is any transaction or events 
related where the reliability of the source of information is questionable. It is 
with these factors in mind that the following material is set forth. 

Now, I proceed with the essential facts. 

The report then proceeded to point out that information had come 
to the attention of the FBI from a confidential source that Harry Dex- 
ter White was engaged in espionage activities at least as early as the 
latter part of 1942 or early in 1943. It was reported that White was 
supplying information consisting of documents obtained by him in the 
course of his duties as Assistant Secretary of the United States Treas- 
ury Department to Nathan Gregory Silvermaster and to William 
Ludwig Ullmann who resided at 5515 Thirtieth Street NW., Wash- 
ington, D. C. 

The material consisted of reports of a varied nature concerning the 
financial activities of the United States Government, particularly if 
they related to foreign commitments. Also various memoranda and 
reports from other governmental departments and agencies were made 
available through these channels. It was reported that these docu- 
ments had usually been reduced to photographs by the time they were 
observed but on occasions the original documents themselves were 
seen. 

During the investigation of these charges, it was learned that a 
complete photographic laboratory did in fact exist in the basement 
of the Silvermaster home sufficiently well equipped for the copying 
of documents. This included an enlarger, developing equipment, and 
all the necessary chemicals and other incidentals. 

These documents, consisting of notes taken therefrom or verbatim 
copies, were usually photographed and delivered through channels to 
Jacob M. Golos, a known Soviet agent. (Jacob M. Golos whose real 
name is Jacob Raisin pleaded guilty to an indictment along with 
World Tourists, Inc., charging failure to register as agents of the 
Soviet Government in JNIarch 1940. He received a fine of $500 and a 
jail sentence of 4 months to 1 year which was later changed to pro- 
bation.) The material collected in this i)articular parallel of Soviet 
espionage was all channeled through Golos eventually to the Soviet 
diplomatic establishment in this country. The report pointed out that 
it could be presumed after arrival at this destination that material 
of primary interest to the Soviets was forwarded to Moscow, 



INTERLOCKING SUBVERSION IN GOVERNMENT 1117 

U. S. S. R., via diplomatic code and material concerning which there 
was ]io urgency reached that destination through the Soviet diplomatic 
pouch. 

Subsequent to the death of Golos, the material gathered by the 
Silvermasters and Ullmann originating with White, according to the 
information received by the FBI, went through an unknown indi- 
vidual to Anatole Borosovich Gromov, former First Secretary of the 
Soviet Embassy, Washington, D. C. Suspicions had previously sur- 
rounded the activities of Gromov to the effect that he was the suc- 
cessor to Vassili Zubilin, reported head of the XKVD, one of the pri- 
mary branches of Soviet Intelligence in North America. Zubilin 
returned to Moscow, U. S. S. R., in the late summer of 1944, and Gro- 
mov departed from the Ignited States for Moscoav, U. S. S. R., on De- 
cember 7, 1945. From all appearances, the position previously held by 
Gromov to whom this material was transmitted prior to his departure 
was next held by Feodor Alexeevich Garanin, an official of the Soviet 
Embassy, Washington, D. C. 

According to the information received by the FBI, White was 
considered one of the most valuable assets in this particular parallel 
of Soviet intelligence. This view was taken since in his capacity as 
Assistant Secretary of the United States Treasury, those individuals 
whom this group were anxious to have assigned there could be placed 
in the Treasury Department. Among the persons in this category 
were William Ludwig Ullmann, William Henry Taylor, and Sonia 
Steinman Gold. 

Sometime in the summer or fall of 1943, the Silvermasters believed 
it desirable to have someone placed as a secretary to White in order 
to facilitate the obtaining of information from his office for delivery 
to Soviet espionage agents. As a result of these deliberations, Mrs. 
Helen Witte Silvermaster went to one of the Communist functionaries 
in Washington, D. C, and from this source secured the name of Sonia 
Steinman Gold, Eventually, Mrs. Gold, through arrangements with 
White, obtained a position (as one of the secretaries) in the United 
States Treasury Department. 

As a result of this employment, Mrs. Gold obtained documents from 
White's office, which she copied and made her notes available to Mrs. 
Helen Witte Silvermaster. The information wdiich Mrs. Gold ob- 
tained in a general way concerned principally the Treasury Depart- 
ment's opinions and recommendations concerning applications for 
loans made by the Chinese and French Governments. 

It was also reported that there was in existence another parallel 
of Soviet Intelligence operating within the United States Govern- 
ment and headed by Victor Perlo. The information gathered from 
the Perlo group was channeled through Jacob M. Golos and on to the 
Soviet diplomatic establishment in the same manner as outlined for 
the operation of the Silvermaster group. 

Because of the relationships existing between Golos and the Perlo 
group, Harold Glasser appeared in the picture. Glasser was rather 
closely associated with. Wliite and was able to supply general informa- 
tion concerning the activities of the United States Treasury Depart- 
ment, particularly where they concerned proposed loans to foreign 
countries. He also supplied information originating in the Foreign 
Economic Administration which had been sent to the United States 
Treasury Department for action or information. 



1118 INTERLOCKING SUBVERSION IN GOVERNMENT 

The report states that the Bureau had secured the names of a number 
of persons described as members of the underground Communist group 
in Washington, D. C, from another source. Among those names Avas 
that of Abraham George Silverman whom the report describes as 
formerly employed by the Railroad Retirement Board and the United 
States Army Air Forces and as privately employed by the French 
Supply Council of the French Government. As incidental to the 
mention of Silverman the report states that the information received 
Avas to the elfect that Silverman worked through close friends who 
were indebted to him. including Harry Dexter White and others. 
The report points out that this information concerning the relation- 
ship between Silverman and White is consistent with the information 
referred to earlier from the other source. 

The section then relates to White's known contacts with Russian 
officials over the years and, therefore, cannot be declassified. It should 
be said here that these contacts were not inconsistent with the regular 
performance of White's duties and considered by themselves are not 
incriminating. 

In July 1945 a clerical employee of the Passport Division of the 
Department of State, who formerly was employed as a clerk by the 
Soviet Government Purchasing Commission, was allegedly stealing 
certain information from the official records of the Department of 
State for transmittal to unknown persons. This individual appar- 
ently admitted that he had collected this information in the course of 
his employment and knew a man who would pay him $1,000 for it. 
In his application for employment with the Department of State this 
individual who stole this information had listed Harry Dexter "\^liite 
as a reference and White had recommended him highly. The report 
added that this circumstance was being set forth in view of the alle- 
gations to the effect that White was considered of extreme value be- 
cause of his influence in securing positions for persons who could be 
of assistance to Soviet espionage. 

The report mentions that White was interviewed by the FBI in 
connection with the Amerasia case, particularly concerning Irving S. 
Friedman, who, according to the report, was known to be one of the 
sources in the Treasury Department Section on Far Eastern Affairs 
that had been furnishing documents to Philip Jacob Jaffe, editor of 
Amerasia. White told the FBI that Friedman was an employee in 
the Treasury Department handling matters dealing with monetary 
affairs in the Far East, and admitted that he had brought Friedman 
to the Treasury Department 5 or 6 years earlier. 

The report contains much corroborative evidence which cannot be 
made public either because it would disclose investigative techniques 
of the FBI or because it might be harmful to the national interest. 
It can be pointed out, however, that over a period of 3 months be- 
ginning in November of 1945 the activities of Harry Dexter White 
were entirely consistent with all the previous information contained 
in the report. White was in frequent close personal contact with 
nearly every one of the persons named as his associates in the spy 
ring. These include Nathan Gregory Silvermaster and his wife, Wil- 
liam Ullmann, Sonia Gold, Harold Glasser, Abraham Silverman, and 
others. 

The report referred to a trip made by White to visit Dr. Abraham 
Wolfson, of Newark, N. J. Wolfson had been reported by numerous 



INTERLOCKING SUBVERSION IN GOVERNMENT 1119 

sources as liaving had frequent and close contacts with numerous 
Communists in the State of New Jersey. The report pointed out that 
Dr. Wolfson in 1944 was a member of the third ward branch of the 
Communist Party and tliat he had been active in Communist Party 
activities for the preceding 7 years under the name of A. Wilson 
Street. It Avas also pointed out in the report that Wolf son held Com- 
munist Party meetings in his office. 

The report stated that in December of 1945 White was seen at 3210 
P Street XW., in Washington, which at that time was the home of 
Alger Hiss, and jjointed out that from other sources Hiss was re- 
portedly working for another parallel of Soviet espionage. 

In December of 1945 White and his wife visited the home of Maurice 
Halperin, who was employed by the Office of Strategic Services. The 
report pointed out that Halperin was a member of the Communist 
Party and beginning in 1942 he passed on information to an espionage 
courier. 

The report refers to the close personal relationship in 1945 between 
White and Frank Coe who was also one of the individuals supplying 
information to the Silvermasters and thence through channels to the 
Soviet Government. 

The report points out in considerable detail the contacts between 
White and Lee Pressman. The report points out that Lee Pressman 
was a member of an underground group headed by Harold Ware, 
which had its headquarters in Washington. The report points out 
many of Pressman's activities as a Communist. 

The report points out that Silvermaster's position in the Treasury 
Department was secured for him by White. The report points out 
that the Bureau's informant had identified Silvermaster as the head 
spy in the espionage ring wdth which White was working and that 
Silvermaster has a long record of reported association with known 
Communists. The report also points out that other sources of infor- 
mation had established that Silvermaster was acquainted with many 
other individuals who were stronglv suspected of Soviet espionage. 
The report also points out that Mrs. Silvermaster has a long history of 
association with Communist-front groups. 

It is stated in the report that in addition to the many contacts be- 
tween White and Ullman which were disclosed, White wrote a letter 
in November 1940 on the stationery of Director of Monetary Research 
of the United States Treasury Dej^artment requesting the deferment 
of Ullman. After Ullman left the Army and entered the Treasury 
Department he worked in the division headed by White. 

The report pointed out that Harold Glasser was in another branch 
of Soviet espionage headed by Victor Perlo. Glasser was an assistant 
to 'White in the Treasury Department. It was reported that Glasser 
was described by numerous sources as a member of the Communist 
Party. In addition to this information, the report points out a great 
many other connections and contacts among the members of the es- 
pionage ring, all of which supported and were consistent with the 
earlier portions of the report. 

It is interesting to note how accurate this information was that the 
FBI supplied at that time. Following is a list of Wliite's close asso- 
ciates referred to in the FBI reports who were members of the espio- 
nage ring who have claimed their privilege not to answer questions 
on the grounds that it would incriminate them : Silvermaster, Perlo, 
Glasser, Coe, Ullman, Silverman, Halperin, and Kaplan. 



1120 



INTERLOCKING SUBVERSION IN GOVERNMENT 



Also there is Lee Pressman, who admitted membership in the Com- 
munist Party, and Alger Hiss, who has since been convicted. 

Of course, no one could, with any validity, suggest today that there 
is any doubt that White was in this espionage ring. Some of White's 
original espionage reports, written by him in his own handwriting for 
delivery to agents of the Red x\rmy Intelligence, were recovered in the 
fall of 1948 and are now in the possession of the Department of Jus- 
tice. I have photostatic copies of them here and I offer the copies as 
part of the record of my testimony. 

The Chairman. Thank you. That will become a part of the record. 

(The photostatic reports referred to above follow) : 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1121 



^?s \'^'-^ vS'''^^'^^^'^S^^-*s ^^^"^^^^"^^^ 



»- 




1122 



INTERLOCKING SUBVERSION IN GOVERNMENT 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1123 




1124 



INTERLOCKING SUBVERSION IN GOVERNMENT 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1125 






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,.-4<;:^:|pr^:^^ ^^^sRi:|;|||;|:>-; '^ 



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1126 



INTERLOCKING SUBVERSION IN GOVERNMENT 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1127 




The information contained in these reports was, as the subcommittee 
knows, of great importance at the time White wrote them although, 
with the lapse of time, the necessity for secrecy on these subjects has 
disappeared. 

But the record which was available to the Truman administration in 
December 1945 and thereafter should have been sufficient to convince 
anyone that White was a hazard to our Government. 

The question which had to be decided at that time was not whether 
White could have been convicted of treason. There was ample evi- 
dence that he was not loyal to the interests of our country. That was 
enough. Government employment is a privilege, not a right, and we 



1128 INTERLOCKING SUBVERSION IN GOVERNMENT 

don't have to wait until a man is convicted of treason before we can 
remove him from a position of trust and confidence. 

When I was first invited to appear before this svibcommittee, I 
thought from wliat I had read in the newspapers that there was some 
issue of fact involved on the question of whether Mr. Truman knew 
about Harry Dexter White's espionage activities at the time he ap- 
pointed him as Executive Director for the United States of the Inter- 
national Monetary Fund. I read in the newspaper that after being 
advised of my speech in Chicago, Mr. Truman stated to the press that 
he had never read any of the derogatory reports concerning Harry 
Dexter White to which I referred. I read later that Mr. Truman said 
that he fired White as soon as he discovered he was disloyal. On the 
l)asis of these statements I thought that the accuracy of what I had 
said in Chicago was being challenged. 

However, it now seems in the light of Mr. Truman's television speech 
of last night that it is conceded that on February 6, 1946, the daj^ on 
which White's appointment was confirmed by the Senate, Mr. Truman 
did read the most important of the reports to which I referred, and 
that he thereafter, even though he had a legal right to ask that the 
nomination be withdrawn, signed White's commission and permitted 
him to take office on the first day of May with full knowledge of the 
facts reported by the FBI. 

It is, of course, extraordinary to learn from Mr. Truman, in view of 
his earlier statements, that he signed Mr. White's commission with the 
thought that it might help to catch him. I would think that the 
commissioning of a suspected spy to an office of such great importance 
would not be easily forgotten. It seems to me even more extraordinary 
to learn that Mr. Truman was aware as early as 1046 that a Communist 
spy ring was operating within his own administration when for so 
many years since that time he has been telling the American people 
exactly the opposite. Indeed, it seems to me that this explanation of 
White's appointment — that is, that he was appointed and allowed to 
remain in office for more than a year in order to help the FBI trap him 
as a spy — raises more questions than it answers. 

While under suspicion and surveillance White was, we are told, 
appointed as the first United States Executive Director of the fund. 
He was also its chief architect. The opportunities afforded him in 
that capacity for betraying the country were very great. 

There were matters of great importance to the United States which 
were handled by the Executive Directors while White was a member. 
A first order of business was to plan the general organization of the 
staff. It was agreed to divide the staff into five primary departments 
and offices. Eacli of these departments and offices has a director. One 
of these five primary departments was called the Office of the Secre- 
tary. Now, who received the position of Head of the Office of Secre- 
tary ? It was Frank Coe, named in the FBI report as a member of the 
es]:)ionage ring, at a salary of $20,000 a 3'ear. 

The Chairman. Was that a tax-free salary of $20,000? 

Attorney General Brownell. I would have to check the records. 

Recentl}' this subcommittee had occasion to inquire of ISIr. Coe 
whether he was presently engaged in subversive activities. Mr. Coe 
replied : 

Mr. Chairman, under the protection afforded rue by the fifth amendment, I 
respectfully decline to answer that question. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1129 

Coe continued in tlie employ of the fund until as recently as Decem- 
ber 3, 1952, when he was finally dismissed. 

Wlio received the position of adviser to the United States member 
of the Board? It was Harold Glasser, also named as a member of 
the espionage ring. 

Glasser was subpenaed by the Senate subcommittee on April 14, 
1953, and when asked about his relationships with members of the 
Communist underground, he invoked his privilege against self-incrim- 
ination. He also refused under privilege to tell the subcommittee the 
circumstances surrounding his Government assignments within the 
United States or abroad. 

It has now been said that Wliite's promotion to the post of Director 
of the International Monetary Fund was permitted to go through so 
that he might be better kept under surveillance, and so the investi- 
gation of the other members of the ring might continue unimpaired. 
It is suggested that permitting White to continue his espionage op- 
erations might enable the Truman administration to entrap not only 
Wliite, but the whole Soviet espionage ring working within our Gov- 
ernment. 

To accomplish such an end would require infinite and detailed care 
if the national interest was to be at all protected. 

In the first place, arrangements would have to be made to insure 
absolute control of the subjects and the situation. Some time limits 
would have to be established. 

If the national interest were to be protected, measures would have 
had to be designed to prevent classified material with a significant 
bearing on national security from reaching White and the others. 
Top responsible officials of the United States Government, whose 
duties brought them in contact with White and the other members of 
the ring, would have had to be forewarned. Great care would have 
to be taken to make certain that these spies did not affect the decisions 
of our Government. 

The records available to me fail to indicate that any of these mini- 
mum precautions were taken. The records available to me fail to 
show that anything was done which interfered with the continued 
functioning of the espionage ring of which White was a part. 

And if we apply simple and reasonable tests to how other members 
of the espionage ring named in the FBI report were treated, there is 
considerable doubt that anything was done to protect the national in- 
terest. Let me offer you a few examples. 

Harold Glasser. a close subordinate and associate of White, was 
described in the FBI report as an active member of the espionage ring. 
What controls were established over the movements of Harold 
Glasser? In July 1946 Glasser attended the UNRRA conference in 
Geneva, Switzerland, as a member of the United States delegation. 
In January 1947 Glasser went to Trieste as a United States member 
of a four-power commission to study the economic aspects of the 
Trieste problem. At the special request of the State Department in 
March and April 1947, Glasser attended the Moscow meeting of the 
Council of Foreign Ministers as an adviser to the United States Sec- 
retary of State. 

Tlie Chairman. Who was then Secretary of State? 

Attorney General Brownell. Mr. Marshall. 

32918°— 54— pt. IG 5 



1130 INTERLOCKING SUBVERSION IN GOVERNMENT 

How was Glasser's access to classified materials limited? As far 
as we have been able to determine, it was not. Records in the Depart- 
ment indicate that late in 1946 Glasser, described as a member of the 
espionage ring, received a copy of the FBI report on Victor Perlo 
which described him as a member of the Soviet espionage ring. 
Perlo stayed on in the Treasury Department until March 27, 1947, and 
then left to accept the post of Treasurer of the Intergovernmental 
Committee on Refugees. 

Nathan Gregory Silvermaster in March 1948 was promoted to be- 
come the Chief Economist of the War Assets Administration's Divi- 
sion of Economic and Market Research. After the report was made, 
William Ullmann and Irving Kaplan stayed on with the Department 
of the Treasury without any restrictions being placed on them or 
their activities as far as we can determine. 

This subcommittee, I am sure, will want to examine with great care 
the claim that there was a plan to keep White and others in the 
espionage ring in Government employment in the hope of catching 
them. You will also want to investigate, I believe, what care was 
used to protect the national security. These are very grave questions 
to which the public is entitled to complete answers. 

As members of this subcommittee know, this administration is try- 
ing an entirely different approach to security problems. 

Despite difficulties stemming from past laxity, 1,456 employees have 
actually been separated from Federal Government payrolls since 
January 1953 on the grounds that they are security risks. More cases 
are still under consideration. 

Our work to date has clearly shown the need for at least two new 
laws to help the Government in the prosecution of espionage cases. 

Senator McClellan. For clarification, you say 1,456 employees have 
actually been separated. Have they been dismissed or permitted to 
resign, or does that include both categories? 

Attorney General Brownell. Both categories. They were per- 
mitted to resign while they were under investigation for being security 
risks. 

Senator Johnston. Were they all fired on account of espionage 
activities ? 

Attorney General Brownell. No, security risks. 

Senator Johnston. Some of them were habitual drunkards? 

Attorney General Brownell. That is correct. 

Senator Johnston. And other things. Some were sex j^erverts ? 

Attorney General Brownell. That is correct. 

The Chairman. Proceed. 

Attorney General Brownell. Our work to date has clearly shown 
the need for at least two new laws to help the Government in the prose- 
cution of espionage cases. I hope that these proposed laws will be 
considered by Congress at its session starting in January. The first 
would allow the Government to use wiretap evidence to prove its 
espionage cases. At the present time information received by tapping 
wires cannot be used as evidence in the Federal courts. 

There are cases of espionage presently in the Department of Justice, 
but since some of the important evidence was obtained by wiretapping, 
the cases cannot be proved in court and therefore there will be no 
prosecution so long as the law remains in its present state. The second 
proposed law would allow proper authorities in Government to grant 



INTERLOCKING SUBVERSION IN GOVERNMENT 1131 

immunity to witnesses who are snspected of espionao:e or Communist 
activities, but who refuse to testify under the fifth amendment on the 
ground that their testimony might incriminate them. As I stated 
before, a number of persons who worked with Harry Dexter White in 
his important Government assignments, have refused to testify on this 
ground. If the Government, under proper safeguards, is authorized to 
grant immunity to such persons, we believe we can obtain testimony 
which will assist in tracking down the higher ups engaged in con- 
spiracy to overthrow our Government by force and violence. 

The White case illustrates that it is not enough for men in high Gov- 
ernment positions to be loyal. They must also be vigilant to combat the 
dangers to our Government and to our free institutions. 

I thank the subcommittee for this opportunity to set forth these 
facts in the case of Harry Dexter White. 

The Chairman. Thank you. Mr. Morris, I believe you have a series 
of questions you want to ask the Attorney General. Will you proceed 
now with your questions? 

]\Ir. Morris. Mr. Brownell, up to date this subcommittee has been 
addressing itself principally to the November 1945 security memo- 
randum, which Vice President Nixon has identified as a security report 
which was circulated to the President of the United States and to 
other chief officials in the United States Government. 

In your testimony to date you have adverted to three other docu- 
ments of this time. I understand there was a letter from Mr. Hoover 
dated November 8, 1945, which I take it was more of an alert than 
anything else. There was a detailed report dated November 27, 1945, 
and in addition there was a report which was submitted by Mr. Hoover 
at the time of Mr. White's nomination. I believe that was dated 
February 6, 1946. 

The Chairman. February 4. 

Mr. Morris. February 4. 

Attorney General Brownell. It may have been dated February 1, 
and delivered on the 4th. 

Mr. Morris. Mr. Brownell, with respect to the November 8, 1945, 
letter to General Vaughan, does your Department show that distribu- 
tion was made to any party other than General Vaughan of that par- 
ticular letter ? 

Attorney General Brownell. If it does, I will be glad to furnish 
it to the committee. 

Mr. Morris. I will ask you the same question with respect to the 
memorandum of November 27, 1945. 

Attorney General Brownell. I think I have made public the records 
on the distribution of that, but I will be glad to furnish it to the 
committee. 

Mr. Morris. So we can put it in our record. 

Attorney General Brownell. Yes. 

Mr. Morris. And the third would be the distribution given to the 
February 1, 1946 memorandum on Harry Dexter White. 

Attorney General Brownell. I will check the records and do the 
same. 

(The information to be furnished appears in the record of the hear- 
ing on November 23, 1953, at p. 1169.) 



1132 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Morris. I think you have told us to the best of your ability, 
Mr. Brownell, what was in the 1945 memorandum, November 1945 
memorandum. 

Attorney General Brownell. Yes. 

Mr. Morris. You have told us all you feel you can, consistent with 
security regulations, about that particular document? 

Attorney General Brownell. And protection of the FBI, that is 
correct. 

Mr. Morris. I think you have told us that there were many other 
individuals in addition to Mr. White who were mentioned in that 
particular memorandum. 

Attorney General Brownell. Yes. 

Mr. Morris, In connection with the February 1946 memorandum, 
have you told us in full what you feel this committee can know about 
that particular memorandum ? 

Attorney General Brownell. Yes. 

Mr. Morris. And you told us who received that memorandum. 

Attorney General Brownell. Yes. 

Mr. Morris. Does your Department show any records that there 
was a covert understanding on the part of the Attorney General's 
Office in the matter of Harry Dexter White, the nature indicated by 
the evidence, and that he was being allowed to stay in office in order 
to be subjected to surveillance ? 

Attorney General Brownell. Covert agreement? 

Mr. Morris. A covert agreement of any kind. 

Attorney General Brownell. May I check with my associates on 
that, who are more familiar with the details of the records ? 

The Chairman. You may. 

Attorney General Brow^nell. No, sir. 

Mr. Morris. In other words, there has been raised on several oc- 
casions the possibility that there was a covert agreement among the 
parties concerned that Mr. White would stay in the position that 
he was about to assume and that he would therefore be subject to 
greater surveillance. 

Attorney General Brownell. My answer is that to the best of 
my knowledge, there is no such evidence in the records of the 
Department. 

Mr. Morris. Was there any record made that such an agreement 
was entered into concerning, say, Harold Glasser ? 

Attorney General Brownell. I think I better check that and fur- 
nish it to the committee. As far as I know, there was not. 

Mr. Morris. I see. From the point of view of this committee, Mr. 
Brownell, it would seem that the evidence concerning Harold Glasser, 
Alger Hiss, Victor Perlo, and another case, Frank Coe, was equally 
as impressive as the evidence about Mr. White. So therefore, pre- 
sumably if there was an undertaking in connection with subjecting 
Mr. White to surveillance, there should have been one in connection 
with watching these others ? 

Attorney General Brownell. I will check the records of the De- 
partment and advise this committee. 

Mr. Morris. There is one other thing, Mr. Chairman, which I 
would like to ask Mr. Brownell. I think we have some records here, 
but in the event these records are not the most perfect records, I 
would like the testimony of this witness. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1133 

The Chairman. Proceed. 

Mr. Morris. In the letter of February 1, 1946, Mr. Hoover pointed 
out: 

It is further commented by my Canadian source that if White is placed in 
either of these positions — 

tlie two positions posted there were President of the International 
Bank or Executive Director of the International Monetary Fund. 
Mr. Hoover went on to say — 

he would have the power to influence to a great degree deliberations on all 
international financial arrangements. 

Was he in fact made Executive Director of the International Mone- 
tary Fund as our records seem to indicate ? 

Attorney General Brownell. No. He was made United States Ex- 
ecutive Director, in which capacity, as I understand it, he cast over 
33 percent of the votes of the entire organization because of the 
large stake the United States had in that fund. It was $2% billion. 

Mr. Morris. Mr. Brownell, the bylaws of that particular organi- 
zation indicate there were 12 executive directors, one representing 
each of the 5 larger nations, I believe, and 7 representing the smaller 
nations. So they had all the title of executive director, one repre- 
senting the United States. So it would appear from our records, 
imperfect as they are, because we have not completed the case, that 
he was in fact appointed to the very position that Mr. Hoover was 
warning about. 

Attorney General Brownell. I do not know that we have a record 
on that. I think my first statement covers it. 

The Chairman. Mr. Sourwine would like to ask a question at this 
point. 

Mr. Sourwine. Directly on that point, is it not true that toward 
the end of his service with the International Monetary Fund that 
Mr. Harry Dexter Wliite was Acting Chairman of that fund in the 
absence of Mr. Gutt. 

Attorney General Brownell. That is my recollection. 

Mr. Sourwine. And is it not true that when he finally got around 
to submitting his resignation from the fund he asked that it be ac- 
cepted as of a future date and after the return of Dr. Gutt so he might 
continue to serve as Acting Chairman of the fund until Dr. Gutt's 
return ? ^ 



1 state Department press release No. 1080, April 8, 1947 : 

"The President has sent the following letter to Hon. Harry D. White, accepting his 
resignation as Executive Director of the International Monetary Fund : 

"April 7, 1947. 

"Dear Mr. White : With sincere regret and considerable reluctance I accept your 
resignation as United States Executive Director of the International Monetary Fund, 
effective on Mr. Gutt's return from Europe. 

"I know you can view with a great deal of personal satisfaction your career in public 
service, crowned as it has been by your ceaseless efforts to make a real contribution to the 
stability of international trade through the International Bank and the International 
Monetary Fund, which hold so much promise to a world desperately anxious for a lasting 
peace. 

"You have filled with distinction your present assignment as United States representa- 
tive on the Board of Executive Directors of the International Monetary Fund, and your 
unfaltering efforts have been a source of great pride to me. 

"I wish you the very best of luck and will feel free to call upon you from time to time 
for assistance in dealing with problems we will be continually facing in which your back- 
ground and abilities make you peculiarly able to help us. 
"Very sincerelv yours, 

"Harry S. Truman." 

Footnote continued on p. 1134. 



1134 INTERLOCKING SUBVERSION IN GOVERNMENT 

Attorney General Brownell. That could be. 

The Chairman. Mr. Morris, you may proceed. 

Mr. Morris. Mr. Brownell, in the course of your testimony you 
mentioned several individuals who are still at work in the Interna- 
tional Monetary Fund. I suppose that our security agencies have 
notified to the fullest all the interested parties about the fact that there 
is some evidence about these two gentlemen. When we had them be- 
fore our committee, William Henry Taylor and Irving Friedman were 
both still employed by the International Monetary Fund. 

Attorney General Brownell. As I understand it, at least as late 
as a month ago Taylor was still employed there. I would have to 
check the records on the other one. 

Mr. Morris. At any rate, all the security agencies have been alerted 
to the evidence for whatever it is ? 

Attorney General Brownell. Yes, before the end of January 1953. 

Mr. Morris. Mr. Chairman, the committee should know that we 
have called both of these gentlemicn in executive session, but the sub- 
committee has felt that they are not completed cases as far as we are 
concerned. 

Mr. Chairman, I have no more questions. 

The Chairman. Any further questions by any member of the 
committee? 

Senator Butler. Mr. Chairman, I would like to ask this question : 
Mr. Attorney General, are you in a position to evaluate the relative 
sensitivity of the position of the Assistant Secretary of the Treasury 
and a director of the International Monetary Fund ? 

Attorney General Brownell. The salary as Assistant Secretary of 
the Treasury was ninety-six or ninety-eight hundred dollars. 

Senator Butler. I am directing my question more to the ques- 
tion of sensitivity. 

Attorney General Brownell. The salary of the other was about 
$17,000. That is one way to measure it. The other way to measure it — 
and I think a more accurate way — is to review the description I gave 
of the powers of that new position in my statement. They were 
very extensive. 

Senator Butler. In your opinion, then, a director of the Inter- 
national Monetary Fund is in a much more sensitive position than 
would be an Assistant Secretary of the Treasury? 

"Following is the text of Mr. White's letter to the President : 

"March 31, 1947. 

"Dear Mr. Puesident : I am writing to submit my re.signation as United States Execu- 
tive Director of the International Monetary Fund. I have for some time cherished the 
idea of returning to private enterprise but did not want to leave the Government until 
the Bretton Woods organizations, in which I am so dicply interested, were well launched. 
The work of the fund is now off to a good start. The period of active operations is just 
beginning, and this is an opportune time for my successor to take over. 

"In tlie absence of Mr. Gutt, who is in Europe on business for the fund, I am Acting 
Chairman and have prumi.^ed to remain until he returns in the early part of May. 

"I want to thank vou, Mr. President, for your confidence in me and for the opportunity 
you gave me, as As'sistant Secretary of the Treasury and as United States Executive 
Director of the fund, to help l)ring the Bretton Woods proposals to realization. I shall 
continue to follow their work closely and will, of course, be glad to help any time I am 
called upon. 

"It has been a source of satisfaction and encouragement to know of your keen interest 
in tile fund and your policy of bending every effort toward achieving a stable and pros- 
perous world economy. I shall always remember with pleasure my connection with 
your administration. 

"I'lea.se accept my warm personal regards and good wishes. 
"Respectfully yours, 

"Harry D. White." 



INTERLOCKING SUBVERSION IN GOVERNMENT 1135 

Attorney General Brownell. I think Russia would have been very 
happy to know all of the information that was there. 

Senator Buti.er. I would like to point out that Mr, Truman said 
last ni^ht in talking about the relative sensitivity of those two posi- 
tions — he queried as to the sensitivity at all of the latter position. 
You apparently do not agree with that. It is a sensitive position. 

Attorney General Brownell, I would call it a sensitive position. 
It is a matter of judgment. 

Senator Johnston, I believe you said that the Russians would be 
glad to know that information. Didn't they have a director there ? 

Attorney General Brownell. They did not have the confidential 
files of the United States Executive Director is what I was trying to 
point out. 

Senator Johnston. In what way would they not have a file that our 
director had ? 

Attorney General Brownell, Each executive director has his own 
confidential files furnished by his own government. What I was try- 
ing to say and did not express too clearly is that they would like to 
know what was in our executive director's confidential files. 

The Chairman. Any further questions by any member of the com- 
mittee or counsel ? 

Senator McClellan, you may proceed. 

Senator McClellan. Mr. Brownell, as I understand your testimony, 
you give a summary or your own evaluation of the memorandum that 
was attached to this letter of February 1, 1946, which constitutes the 
second 

Attorney General Brownell. My idea of what the essential facts 
were. 

Senator IMcClellan. That is your evaluation of the essential facts ? 

Attorney General Brownell. Yes. 

Senator McClellan. You are not prepared to make the whole docu- 
ment public ? 

Attorney General Brownell. That is correct, for the reasons I have 
stated. 

Senator McClellan. May I inquire whether you consulted with the 
head of the FBI, Mr. Hoover, in making the evaluation of that report 
as you have stated in your testimony today ? 

Attorney General Brownell. I accept full responsibility for the 
evaluation. I would like to have Mr. Hoover state his part in it. 

Senator McClellan. What I am trying to determine is, is it your 
independent evaluation without consultation with the director of the 
FBI? 

Attorney General Brownell. Yes. 

Senator McClellan. Would others evaluating it probably come to 
different conclusions to those you expressed? 

Attorney General Brownell. They might evaluate different parts 
differently, but I cannot see how any reasonable person, certainly with 
legal training, could reach a different result. 

Senator McClellan, You think there is little room for doubt or 
differences of opinion as to the import of the FBI report on Harry 
Dexter IVliite? 

Attorney General Brownell, That is my judgment, Senator. 



1136 INTERLOCKING SUBVERSION IN GOVERNMENT 

Senator McClellan. Then if I may go back to the beginning of 
your testimony, is this a correct quotation from your speech of 
November 6 : 

Harry Dexter White was known to be a Communist spy by the very people 
who appointed him to the most sensitive and important position he ever held 
in the Government service. 

Attorney General Brownell. I think that is a correct quotation of 
one sentence of my speech. 

Senator McClellan. That is a correct quotation of one sentence of 
your speech ? 

Attorney General Brownell. Yes. 

Senator McClellan. When you used the term "the very people," 
whom did you include ? Who made the appointment and who did you 
include ? 

Attorney General Brownell. The appointment was made by Mr. 
Truman. 

Senator McClellan. The appointment was made by Mr. Truman ? 

Attorney General Brownell. Yes. 

Senator McClellan. When you used the term "people," it applied 
to former President Truman ? 

Attorney General Brownell. Yes. 

Senator INIcClellan. That is whom you meant ? 

Attorney General Brownell. Yes. 

Senator McClellan. The import of it was that Harry Dexter 
White at the time the appointment was made was known by Harry 
Truman to be a Communist spy. It that not correct ? 

Attorney General Brownell. Yes. He said last night, as I heard 
his speech, that he had read the report. 

Senator McClellan. Did you mean to convey that impression to 
the public and to the Nation when you made that statement that at 
the time President Harry Truman appointed Harry Dexter White 
that President Truman then knew him to be a Communist spy ? 

Attorney General Brownell. That he had read the report and that 
any reasonable man reading that report would so conclude. 

Senator McClellan. You used the word "knew" ; was known to be. 

Then you believed at the time you made the statement, and you 
meant to convey that impression to the public, that at the time of the 
appointment Harry Dexter White was known to be a Communist spy 
by President Truman. 

Attorney General Brownell. I don't want you to put words in my 
mouth, Senator. 

Senator McClellan. I am not. I am using your words. 

Attorney General Brownell. I want to say exactly what I meant, 
and I want to say it in my words because I am quite sure they are 
accurate. 

Senator McClellan. I do not see how anyone can get any other 
impression from it except what I have just said. If there is any other 
impression to be gotten from it, will you tell me what it is ? 

Attorney General Brownell. I think that any reasonable person 
reading that report, especially if he had legal training, would have 
come to that conclusion. 

Senator McClellan. I am not questioning yours. You did come 
to that conclusion and you expressed it. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1137 

Attorney General Brownell, And I think anyone fairly would. 

The Chairman. Didn't Mr. Truman say last night he had read 
the report? 

Attorne}^ General Brownell. Yes ; that is what I heard him say. 

Senator McClellan. I am not questioning that, I am trying to 
determine why you go on and explain in your statement that you 
didn't mean to convey that impression. 

Senator Johnston. When was the appointment made? 

The Chairman. Just a moment. There is a question pending. 

Senator McClellan. In your prepared statement you go on to 
explain that you didn't mean to convey that impression to the public. 

Attorney General Brownell. I said exactly what I said in my 
statement. I did not impugn his loyalty and I did not intend to 
impugn his loyalty. 

Senator McClellan. Loyalty is one word. What other word would 
you use to state what you impugn? 

Attorney General Brownell. Judgment. 

Senator McClellan. Would you call it stupidity or laxity, or what 
other term would you use? 

Attorney General Brownell. I used the word in my speech "blind- 
ness" which I think perhaps is an acurate way of stating my opinion. 

Senator McClellan. Almost synonymous with stupidity? 

Atorney General Brownell. Not in my opinion, no. Mr. Truman 
is not a stupid man. He was blind on this score, but he was not a 
stupid man and is not. 

Senator McClellan. Just blind on this score? 

Attorney General Brownell. Yes. 

Senator McClellan. He either appointed a Communist spy know- 
ingly or he did not know it and according to your evaluation of the 
report that he had that was made available to him by the FBI, he 
could not have read that report and come to any other conclusion ex- 
cept that Harry Dexter White was a Communist spy. If he was not 
stupid, you are bound to believe that he would have come to that con- 
clusion had he read the report. Is that not what you meant to imply ? 

Attorney General Brownell. I think you pretty near said it. I 
orefer my own words, but I think you are getting pretty close to it. 
Applause.] 

The Chairman. May we have order, please. 

Senator Johnston? 

Senator McClellan. One more question. 

I wanted to clear up the confusion about whether you meant to 
make that charge or did not mean to make it. 

Attorney General Brownell. I understand the question perfectly, 
and I think it was a very reasonable question. 

Senator Johnston. Mr. Brownell, I believe this nomination was 
sent in on January 23, 1946, is that true ? 

Attorney General Brownell. Yes. 

Senator Johnston. That was prior to this memo that was sent out 
on February 1, is that true? 

Attorney General Brownell. Yes, and after the letter of November 
8 and the report of December 1. 

Senator Johnston. Now then, there was another report that went 
on February 4, 1946? 



1138 INTERLOCKING SUBVERSION IN GOVERNMENT 

Attorney General Brownell. Delivered on February 4. I believe 
it was dated February 1. 

Senator Johnston. Then he was confirmed in the Senate on Feb- 
ruary 6? 

Attorney General Brownell. That is right. 

Senator Johnston. Then his commission was held up until what 
time ? 

Attorney General Brownell. Later that same month. 

Senator Johnston. Do you know what took place during that pe- 
riod of time and why it was held up ? 

Attorney General Brownell. I testified to certain facts. 

Senator Johnston. Wliat was that? 

Attorney General Brownell. I have testified to certain occurrences. 

Senator Johnston. You testified to certain occurrences there. Do 
you know whether or not the President had consultations with the 
Secretary of the Treasury and probably with the Secretary of State 
and probably also with Mr. Hoover of the FBI ? 

Attorney General Brownell. I heard his words on that last night, 
and I have no reason to disbelieve them. 

Senator Johnston. Do you know, then, whether or not all of them 
came into agreement on what would be done at that time ? Do you 
know or do you have any records of that ? 

Attorney General Brownell. I would like to have Mr. Hoovei" 
speak for himself. He is here and available to the committee. 

Senator Johnston. Now then, you also stated that at the time 
he knew he was a Communist spy, he was appointed, I believe that 
was the word ? 

Attorney General Brownell. Would you say that again? 

Senator Johnston. At the time he appointed him, he knew he 
was a Communist spy ? 

Attorney General Brownell. The exact quotation was given by 
Senator McClellan. 

Senator Johnston. Eeally and truly, when he made the ap- 
pointment, before the commission was made, none of these reports 
were on his desk ; is that true ? 

Attorney General Brownell. I would be amazed if that were 
true. As I said in my statement, this top secret letter of Novem- 
ber 8 was addressed to General Vaughan and the first report of 
December 1 was sent to General Vaughan also. It dealt with about 
the most critical thing that has faced our country since the beginning 
of our Republic, a spy ring of substantial proportions in our Gov- 
ernment. 

Senator Johnston. Have you read the report now of the Un- 
American Activities Committee of August 7, 1918? Have you read 
that report ? 

Attorney General Brownell. Not recently, but I imagine I have. 

Senator Johnston. Did you knov/ that in that report it said that no 
charge of Communist Party affiliations was made against Harry 
Dexter White in that report ? 

Attorney General Brov/nell. In which report is this? In the Un- 
American Activities 

Senator Johnston. The report in 1948. 

Attorney General Brownell. What did it refer to ? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1139 

Senator Johnstox. They were then questioning him and had all 
these different ones before them at that time. 

Attorney General Brownell. I am glad to be able to be corrected 
on that. 

Senator Johnston. I would like if you would look into it, into that 
record, and see just what they did say at that time in that investigation. 

Now, do you know whether or not he was before the court ? 

Attorney General Brownell. Yes, he testified before a grand jury. 

Senator Johnston. He testified along with about 100 others. 

Attorney General Brownell. There were many others. I do not 
know the exact number. 

Senator Johnston. What year was that in ? 

Attorney General Brownell. That was in 1947, 1 think. It is pos- 
sible it was in 1918. I think it was 1947. 

Senator Johnston. 1947, you think that was? 

Attorney General Brownell. Do you have the record on that, 
Senator, to help me on it ? 

Senator Johnston. The main thing I am getting at is that they had 
him before the grand jury. 

Attorney General Brownell. Yes. 

Senator Johnston. He was investigated and they did not see fit 
to find at that time sufficient evidence to make out a probable case. Is 
that true ? 

Attorney General Brownell. Would you like an explanation of 
that? 

Senator Johnston. Yes, I would like for you to explain that. 

Attorney General Brownell. I would be very glad to give it to you. 

When he came before the grand jury, of course, as I have made 
clear, I hope, in my original statement, much of this evidence against 
him was received by wiretap. Under the rules of the Federal courts, 
you cannot introduce before a grand jury or a Federal court in a 
criminal case, evidence obtained by wiretap or leads obtained from 
wiretap information. Therefore, that information was not available 
to the grand jury and, secondly, when the pressure came, when the 
conclusive evidence came of these papers in 1948, shortly after his 
death, of course that had not been discovered at that time. 

Senator Johnston. You are speaking of the pimipkin papers? 

Attorney General Brownell. Sometimes called the pumpkin 
papers, some of which I introduced into the record of the hearing 
today. 

Senator Johnston. Chambers testified just shortly before that time ; 
did he not? 

Attorney General Brownell. He did not produce the pumpkin 
papers until a little later, including the ones in Harry Dexter White's 
handwriting. 

Senator Johnston. Where was Dexter White at that time when 
they were found ? 

Attorney General Brownell. He had died by that time. 

Senator Johnston. He had died before that time. The papers 
were presumably written by him ? 

Attorney General Brownell. Yes. I don't believe that has ever 
been questioned. 

Senator Johnston. But they were found after his death and not be- 
fore he died ? 



1140 INTERLOCKING SUBVERSION IN GOVERNMENT 

Attorney General Brownell. That is right, along with the Alger 
Hiss papers. 

Senator Johnston. And you did not have that evidence until he 
had died? 

Attorney General Brownell. Yes. I tried to make that clear. | 

The Chairman, Senator Butler? 

Senator Butler. Mr. Attorney General, will you go back to the col- 
loquy between you and Senator McClellan. I want to read you a 
passage from President Truman's speech, or former President Tru- 
man's speech of last night, and then ask you a question : 

With his duties thus restricted, he would be subject to the supervision of the 
Secretary of the Treasury and his position would be less important and much 
less sensitive, if it were sensitive at all, than the position then held by him as 
Assistant Secretary of the Treasury. 

The question I want to address to you is this : Does that passage not 
suggest to you a stubborn refusal on the part of Mr. Truman to recog- 
nize and cope with this question of Communist infiltration in the 
United States Government? 

Attorney General Brownell. I would not want to characterize it. 
His style is pretty well known to the American people, I think. 

The Chairman. Mr. Brownell, as a Senator, not only as a member 
of this committee but as a member of the United States Senate, I am 
interested in your reaction to this situation: These records that you 
have testified about being reported to the administrative branches 
of Government, what do you think about a situation where a man like 
Harry Dexter White, on Thursday, April 3, 1947, was permitted to 
assume a new high position in our Government? You see, the Senate 
confirmed this man, not knowing anything about the record about 
which you testified; nobody alerted the Senate that they were con- 
firming a Soviet espionage agent to a high, important position in tliis 
Government. Then besides that affrontery, on April 3, 1947, Harry 
Dexter White was permitted to testify before a Senate committee, a 
congressional committee, as an expert, and again no member of that 
committee had any knowledge of his espionage activities. In other 
words, what can be done to protect the people's representatives from 
listening to and taking as an expert witness such a man as Harry 
Dexter White? 

Attorney General Brownell. You raise an important point there. 

The Chairman. That is of interest to me as a Senator, and I am sure 
it is to every other Member of the Senate. Would you give that some 
thought? 

Attorney General Brownell. I shall. 

The Chairman. So in the future this body will not have to con- 
firm Soviet espionage agents, and be ignorant of the fact that they 
are Soviet espionage agents. 

Attorney General Brownell. I shall do that. 

Mr. Morris. Do you know that Harry Dexter White made a trip 
to Latin America in February and March 1947? That was a year 
after his confirmation. According to our records, the purpose of 
this trip of INIr. White to Latin American countries as determined by 
the Board of the fund was to consult the member countries and to ob- 
tain information concerning their exchange practices including mul- 
tiple rates, exchange taxes, exchange spreads, black market, and bal- 



INTERLOCKING SUBVERSION IN GOVERNMENT 1141 

ance of payment prospects. This decision authorizing Mr. White's 
trip was made by the fund Board on February 4 and 5, 1947. The 
records show that on February 11 to 13, he was in Costa Rica, on Feb- 
ruary 13 to the 16th he went to Nicaragua, February 16 and 17, he 
went to Guatemala, February 17 to 21 he returned to Mexico, Feb- 
ruary 21 to 23, he went to Panama, February 23 to 25, he went to Ecua- 
dor. He went to Peru on February 25 and stayed there until March 
3. He went to Bolivia on March 3, and stayed there to the 4th. He 
went to Peru and stayed there between March 4 and 6. He went to 
Chile on March 6 and 12. He arrived in Miami on March 13, and 
returned to Washington on March 13. 

Does your office have any facilities to keep a man under surveillance 
under those circumstances ? 

Attorney General Brownell. Mr. Hoover is here and I would like 
to have him answer that question. 

Senator McClellan. I would like to ask one more question, if I 
may. In view of the great public interest in this controversy or issue, 
I would like for you to state for the record your opinion of what con- 
structive public interest was served or you intended to be served by 
using the language that I have quoted previously from your speech 
of November 6. What constructive public interest did you have in 
mind would be served by you making such charges against a former 
President of the United States ? 

Attorney General Brownell. I think this is the best way to answer 
that question. Senator. I believe in freedom of information. I be- 
lieve that when a situation like this exists in Government, that no man 
in office, no matter how high his position, should withhold those 
facts if he can expose them without endangering the national security. 
I did not endanger the national security by doing what I did, and 
I hope and pray I have performed a significant public service. 

Senator McClellan. May I ask you one other question. By reason 
of that statement having been made, it was a premeditated statement, 
of course. You had your remarks prepared, I assume. Did you have 
in mind that that public statement and charges against a former 
President of the United States could in any way now help rid this 
Government of Communist spies or espionage agents ? 

Attorney General Brownell. By all means, yes. 

Senator McClellan. You think that helps. 

The Chairman. For our record, the committee which I referred 
to that Harry Dexter White testified before as an expert was the 
Committee on Finance of the United States Senate. 

The subcommittee has deliberated very carefully about the advisa- 
bility of calling the next witness. This man is the custodian of the 
Nation's security, and as such must be kept out of every other activity. 
We feel that he should not be called before congressional committees 
except where in a situation urgently warrants, to clear up any possible 
imputation of irreg-ularity. 

During the past few days there has been a widely publicized rumor 
that Harry Dexter White was allowed to stay in office pursuant to 
an agreement worked out with Mr. J. Edgar Hoover. I stated on 
Friday that Mr. Hoover's role in government was such that such an 
arrangement was outside the purview of his duties, but the reports 
have been persistent, so much so that it has been necessary for us 



1142 INTERLOCKING SUBVERSION IN GOVERNMENT 

to complete our record and to ask him to give his account. We are 
concerned only with the facts which can now be disclosed and this 
subcommittee appreciates the necessity of keeping this man aloof 
from any controversy. 

For that reason we have requested Mr. Hoover to be here. We 
have made this request to the Attorney General, and we have done 
it only because we feel it is absolutely necessary, 

Mr. Hoover, would 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. Hoover. I do. 

STATEMENT O'F J. EDGAR HOOVEE, DIRECTOR, PEDERAL BUREAU 
OF INVESTIGATION, UNITED STATES DEPARTMENT OF JUSTICE, 
ACCOMPANIED BY CLYDE TOLSON, ASSOCIATE DIRECTOR, AND 
L. B. NICHOLS, ASSISTANT DIRECTOR, FEDERAL BUREAU OF 
INVESTIGATION 

The Chairman. For our records, will you state your full name? 

Mr. Hoover. John Edgar Hoover. 

The Chairman. And your present position? 

Mr. Hoover. Director of the Federal Bureau of Investigation, 
United States Department of Justice. 

The Chairman. Where do you reside ? 

Mr. Hoover. Washington, D. C. 

The Chairman. Do you have a prepared statement ? 

Mr. Hoover. I do. 

The Chairman. You may proceed with the reading of your pre- 
pared statement. 

Mr. Hoover. I have copies here for the committee. 

The Chairman. We would appreciate it very much if you would 
distribute them. 

Mr. Hoover. As the members of this committee know, the Federal 
Bureau of Investigation is a service agency. It does not make policy ; 
it does not evaluate ; it secures facts upon which determinations can 
be made by those officials of the United States Government who have 
the responsibility for taking whatever action is indicated. We do 
not inject ourselves into legislative matters. We do not express opin- 
ions or draw conclusions in our investigative reports. We have well- 
defined channels of official distribution through which we direct the 
results of our investigations. 

Since we are not an agency for decision as to action, we are legally, 
morally, and in good conscience obligated to relay all information 
and facts we secure to the responsible officials and agencies of gov- 
ernment. 

It is my duty to report to the Attorney General those matters in 
which he has a responsibility. It is likewise my duty, at the specific 
direction of the President, to report matters coming to our atten- 
tion which are of pertinent interest to the President. 

I mention these basic principles governing our operations since 
they have come into the public interest in connection with recent 
events and disclosures. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1143 

There is more involved here than the charges against one man. This 
situation has a background of some 35 years of infiltration of an alien 
way of life into what we have been proud to call our Constitutional 
Republic. Our American way of life, which has flourished under 
our Republic and has nurtured the blessings of a democracy, has been 
brought into conflict with the godless forces of communism. These 
Red Fascists distort, conceal, misrepresent, and lie to gain their 
point. Deceit is their very essence. This can never be understood 
until we face the realization that to a Communist there are no morals 
except those which further the world revolution directed by Moscow. 

The Harry Dexter White and related cases are in point. Wliite 
was only one person on whom self-confessed Communist espionage 
agents informed — there were others. In this case, the sources who 
gave the information were co-conspirators and either became inactive 
or their identities must for the time being remain undisclosed. Cor- 
roboration in each instance was most difficult to secure, because the 
actual facts were known only to a limited group whose personal in- 
terests dictated concealment and who conveniently had the fifth 
amendment as a refuge. 

Coverage from an intelligence standpoint and an all-out open inves- 
tigation looking toward eventual prosecution, are entirely different 
things. It must be remembered that the acts occurring in the prewar 
years occurred while we were at peace. In the pertinent time period, 
our national climate was one conducive to the so-called united front. 
Communist-front organizations flourished to the point where it ap- 
peared that to belong, in certain circles, was to be stylish. 

Even today, the feetling is rife in some quarters that the FBI should 
not even be investigating the loyalty of Government employees. Over 
the years, the FBI has been the target of attack from persons both 
in and out of government because of its investigations of subversive 
activities. Even Harry Dexter White, when we interviewed him in 
March 1942, spent more time in denouncing investigations of Govern- 
ment employees than he did in furnishing facts. He observed that 
if the chairman of one congi-essional committee "was one-tenth as 
patriotic as I am, it would be a much better country." 

The care, caution, and delicate approach necessary in such FBI 
investigations makes it difficult to develop full facts, particularly 
when those in possession of them declined to make full disclosures. 

The responsibilities for internal security assigned the FBI 
in 1939 by presidential directive were directed toward the times of 
emergency rather than periods of peace. That is the situation today. 
It is still legal for Communists to exercise the right of assembly, free 
speech, and free thought. 

On November 7, 1945, Miss Elizabeth Bentley advised special agents 
of the FBI in considerable detail of her own career as an espionage 
agent. On November 8, 1945, a letter bearing that date was delivered 
to Brig. Gen. Harry H. Vaughan, wherein it was stated: 

The Bureau's information at tliis time indicates that the following persons 
were participants in this operation or were utilized by principals in this ring 
for the purpose of obtaining data in which the Soviet is interested. 

The name of Harry Dexter White was the second name mentioned 
in the list of names furnished. The concluding paragraph of this 
three-page letter stated : 



1144 INTERLOCKING SUBVERSION IN GOVERNMENT 

Investigation of this matter Is being pushed vigorously, but I thought that 
the President and you would be interested in having the foregoing preliminary 
data immediately. 

This communication was sent to General Vaughan in line with 
instructions conveyed to me by President Truman to call such matters 
in which he would have an interest to his attention through General 
Vaughan. I might add that the same practice so far as the FBI is 
concerned was followed during the administration of the late Presi- 
dent Franklin D. Roosevelt. In fact, this same procedure was followed 
during the administration of former President Herbert Hoover. 

Therefore there was nothing unusual or significant about my direct- 
ing a communication to General Vaughan at that time. 

In the meantime, our investigation of White and others mentioned 
by Miss Bentley and Whittaker Chambers, as well as those individuals 
on whom we had adverse information from equally reliable sources, 
continued. 

A detailed summary memorandum was then prepared consisting 
of 71 pages, exclusive of the index, setting forth the highlights of 
Soviet espionage in the United States. This memorandum, dated 
November 27, 1945, was delivered to General Vaughan by a special 
messenger on December 4, 1945. Copies of this memorandum were 
furnished to the Attorney General and certain other interested heads 
of Government agencies. This memorandum included information on 
Harry Dexter White. 

When we learned that Harry Dexter Wliite's name had been sent 
to the Senate for confirmation of his appointment as a United States 
delegate on the International Monetary Fund, we then consolidated 
the information in our files, secured from sources whose reliability has 
been established either by inquiry or long-established observation and 
evaluation, in a 28-page summary dated February 1, 1946, which was 
delivered to General Vaughan on February 4, 1946. The two-page 
cover letter of transmittal opened with this sentence : 

As of interest to the President and you, I am attaching a detailed memorandum 
hereto concerning Harry Dexter White, Assistant Secretary of the United States 
Treasury Department. 

The observation was made in this letter : 

As will be observed, information has come to the attention of this Bureau 
charging White as being a valuable adjunct to an underground Soviet espionage 
organization operating in Washington, D. C. 

From November 8, 1945, until July 24, 1946, seven communications 
went to the White House bearing on espionage activities, wherein 
Harry Dexter White's name was specifically mentioned. 

During that same period, 2 summaries on Soviet espionage activi- 
ties went to the Treasury Department and 6 summaries went to the 
Attorney General on the same subject matter. 

The handling and reporting on the White case followed the Bu- 
reau's traditional practice of reporting all facts and all information 
which had come to our attention, without evaluation or conclusions. 
I would like here to state that an FBI report is the presentation of 
information for evaluation by those who perform administrative 
duties and have executive responsibilities. 

The FBI, of course, has a duty to evaluate its sources of informa- 
tion. In the 28-page summary concerning White, dated February 1, 



INTERLOCKING SUBVERSION IN GOVERNMENT 1145 

1946, delivered to General Vauglian on February 4, 1946, the informa- 
tion contained therein came from a total of 30 sources, the reliability 
of which had previously been established. 

In connection with the sources, I would like to mention one in 
particular. Miss Elizabeth Bentley. From the very outset, we estab- 
lished that she had been in a position to report the facts relative to 
Soviet espionage which she had done. We knew she was in contact 
with a top-ranking Soviet espionage agent, Anatoli Gromov, the first 
secretary of the Soviet Embassy in Washington, D. C, as late as 
November 21, 1945, in New York City. At a previous meeting on 
October 17, 1945, Gromov had given her $2,000 to carry forth lier 
work as an espionage agent. 

All information furnished by Miss Bentley, which was susceptible to 
check, has proven to be correct. She had been subjected to the most 
searching of cross-examinations; her testimony has been evaluated 
by juries and reviewed by the courts and has been found to be ac- 
curate. 

Miss Bentley's account of White's activities was later corroborated 
by Whittaker Chambers and the documents in White's own hand- 
writing concerning which there can be no dispute, lend credibility to 
the information previously reported on White. Subsequent to White's 
death on August 16, 1948, events transpired which produced facts of 
an uncontradictable nature which clearly established the reliability of 
the information furnished by the FBI in 1945 and 1946. 

It must be remembered that in the period from November 8, 1945, 
to February 22, 1946, our first concern was to safeguard the Govern- 
ment from infiltration by subversive elements, and in this approach, 
the objective of pointing attention to security risks must not be con- 
fused with prosecutive action. During this period the FBI was con- 
cerned with protecting the Government's secrets and preventing such 
infiltration. In fact, I took a strong stand because of premature dis- 
closures that would result if prosecution were initiated, for the fol- 
lowing reasons : 

1. The evidence necessary to sustain convictions in indictments for 
law violation is entirely different from that necessary to establish the 
existence of security risks in sensitive posts in the Government. 

2. Some of the evidence, while of an irrefutable nature, was not ad- 
missible in a court of law. 

Now to return to Harry Dexter White. In a conversation on Feb- 
ruary 21, 1946, the Attorney General informed me that he had spoken 
with the then Secretary of the Treasury, the late Chief Justice Fred 
Vinson, and the President, about White. The Attorney General 
stated he felt the President should personally tell White that it would 
be best for him not to serve. I told the Attorney General I felt it 
was unwise for White to serve. The Attorney General then stated he 
would like to confer with Judge Vinson and me on the following day, 
February 22, 1946. 

I had luncheon on February 22, 1946, in the Attorney General's 
office with Judge Vinson and the Attorney General, at which time 
there was a lengthy conference. I was told that the problem was 
■what could be done to prevent White from taking his oath of office. 
Judge Vinson did not want Mr. Wliite to serve as a United States 
delegate on the International Monetary Fund and, in fact, did not 
want him to continue as an Assistant Secretary of the Treasury. 

32918°— 54— pt. 16 6 



1146 INTERLOCKING SUBVERSION IN GOVERNMENT 

On the other hand, Judge Vinson stated that the President could 
be forced to sign the commission since the Senate had confirmed 
White's appointment, I advised Judge Vinson and the Attorney 
General that the character of the evidence was such that it should not 
be publicly disclosed at that time in view of the confidential sources 
involved. 

It was the opinion of Judge Vinson and the Attorney General, as 
expressed that day at luncheon, that the Secretary of State, the Sec- 
retary of the Treasury, and the Attorney General would arrange to 
see the President as soon as possible ; outline to him exactly what the 
situation was and they would suggest to the President that there 
were three alternatives : 

One, the President could dismiss White and make no statement; 
two, the President could send for White and tell him he had changed 
his mind and that he desired White to resign and not serve ; and, three, 
the President could sign the commission, instruct the Attorney Gen- 
eral to continue the investigation vigorously and instruct the Secre- 
tary of the Treasury that he, as Governor of the National Advisory 
Council on International Monetary and Financial Problems and of 
the International Bank, should take steps to see that any persons se- 
lected for appointment should not be appointed except with approval 
of the Governor. 

It was realized, of course, that should the President follow the 
second alternative and White should refuse to resign, the President 
might then sign the commission and take the same action as con- 
sidered in the third alternative. 

I did not enter into any agreement to shift White from his position 
in the Treasury Department to the International Monetary Fund. 
This was not within my purview. I was at the meeting to furnish 
facts, which I did. There was no agreement, while I was present, 
between the Attorney General and Judge Vinson, other than that they 
should see the President with the Secretary of State and suggest the 
three alternatives mentioned above. I was not present in any dis- 
cussions with the President concerning this matter. 

I was advised on February 26, 1D46, by the Attorney General that 
he had seen the President and that an effort would be made to remove 
Harry Dexter White, although the Attorney General expressed doubt 
that this would work out. 

The Attorney General further stated to me on February 26, 1946, 
that he felt that White would go into the job and then would be sur- 
rounded with persons who were especially selected and were not 
security risks. He further stated that the President was interested 
in continuing the surveillance. I might add White had been under 
surveillance as early as November 1945. I stated if that was the 
desire, we would continue the investigation. 

At no time was the FBI a party to an agreement to promote Harry 
Dexter White and at no time did the FBI give its approval to such an 
agreement. Such an agreement on the part of the FBI would be 
inconceivable. If this principle were applied to White, it would, of 
necessity, have applied to others who had similarly been involved in 
this particular investigation, who were dismissed from Government 
service when their subversive activities were discovered. Those dis- 
missals occurred in March 1946, June 14 and 18, 1946, July 1946 and 
Sept-ember 25, 1946. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1147 

At no time did the FBI interpose objections to such dismissals. 
No restrictions were placed upon the agencies wherein action was 
taken. All that we asked was that sources of information be protected. 

Had it been the intent of the FBI to handle the Harry Dexter White 
and other related cases solely as an intelligence operation, the wide- 
spread dissemination of information that was furnished to various 
branches of the Government by the FBI would not have been under- 
taken. 

Under date of February 26, 1946, I advised the Attorney General 
by telephone and subsequently by memorandum, of the receipt of in- 
formation from a confidential source reflecting the possibility that 
Harry Dexter White might have received some notice of either the 
cancellation or impending cancellation of his appointment as a United 
States delegate to the International Monetary Fund. That informa- 
tion is absolutely reliable. I did not know whether anything had 
been said to White or whether any action had been taken to cancel 
his appointment. 

The decision to retain Wliite was made by a higher Government 
authority. Obviously, if a higher authority elected to shift a man 
rather than fire him, if he was suspect, then it would go without saying 
that the FBI would continue our investigation as best we could. 

If in fact there was any agreement to move White from the Treas- 
ury Department to the International Monetary Fund to aid in the 
FBI investigation and to surround White with persons who were not 
security risks, then the agreement would have been broken very early 
because Mr, Virginius Frank Coe, a close associate of Harry Dexter 
White, became the Secretary of the International Monetary Fund in 
June 1946, which position he held until December 3, 1952, when he 
was dismissed after invoking the fifth amendment in an appearance 
before this same committee here last December. It is particularly 
significant that he declined to answer questions regarding his relation- 
ship w4th White. Information on Coe had been furnished to the 
White House as early as February 25, 1946 ; to the Attorney General, 
February 23, 1946, and February 25, 1946, and to the Treasury De- 
partment as early as March 4, 1946. He received his appointment as 
indicated in June 1946. 

From the foregoing, it is clear that the FBI called to the attention 
of the appropriate authorities the facts, as alleged by reliable sources, 
which were substantial in pointing to a security risk, as they occurred. 
It is equally clear that the FBI did not depart from its traditional 
position of making no evaluation, and w^as not a party to any agree- 
ment to keep White in public service. 

That concludes my statement. 

The Chairman. On behalf of the committee, Mr. Hoover, we want 
to thank you for appearing here at our request. Because of the atti- 
tude that I recently expressed in calling you, we want to confine our 
hearing to this particular matter. We are appreciative of your coming 
here and throwing enlightenment on this very important subject. 

Mr. Hoover. Thank you, Mr. Chairman. 

The Chairman. Any questions? 

Senator Butler. I Vv'ould like to ask one question. What opportu- 
nity did the FBI have after Mr. White's transfer to the Monetary 
Fund to observe his activities ? 



1148 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Hoover. I may say, Senator Butler, that the FBI, as I indi- 
cated in my formal statement, had initiated an investigation and sur- 
veillance of Mr. White in November 1945. He was appointed in the 
early part of 1946. We continued our surveillance and investigation 
of Mr. White through 1946 and at times in 1947 and 1948, but I must 
point out that while he was a member of the United States Monetary 
Commission, the premises of that Commission are extraterritorial, 
and the FBI does not have any right to follow any employee or any 
person onto the property of that Commission. We are under the same 
restrictions in regard to the United Nations. 

Senator Butler. Therefore, his appointment hampered your inves- 
tigation rather than helped it? 

Mr. Hoover. We were certainly hampered as far as surveillances 
were concerned. 

The Chairman. Also hampered in regard to Mr. Frank Coe, be- 
cause as I understand, you reported that he was a security risk; and 
in spite of that, he was appointed in June 1946, 1 believed you stated, 
to the Monetary Fund. 

Mr. Hoover. That is correct, Mr. Chairman. I might say that the 
same problem is faced today by the FBI in conducting investigations 
of espionage activities of members who are attached to the delegations 
of the United Nations. 

The Chairman. Sir, we run into the same problem in our com- 
mittee. 

Senator Buti.er. Do you have any doubt as to the sensitivity of 
that agency ? 

Mr. Hoover. I frankly know very little about the operations of 
the agency, Senator. I would not want to express any opinion for 
that reason. 

The Chairman. Any further questions? Senator McClellan? 

Senator McClellan. Mr. Hoover, you were present, were you not, 
when Attorney General Brownell testified ? 

Mr. Hoover. I was. 

Senator McClellan. You heard his summary or his evaluation of 
the memorandum regarding Mr. Wliite that you submitted to the 
President, the second memorandum 

Mr. Hoover. February 4. 

Senator McClellan. February 1. 

Mr. Hoover. Dated February 1 and delivered on Febniary 4. 

Senator McClellan. Would you say that his evaluation and con- 
clusions as testified to here were well warranted by that memorandum ? 

Mr. Hoover. Senator, you are asking me to violate the very tradi- 
tion which I have meticulously adhered to over the years, namely, 
that I will refuse to evaluate the contents of any report. 

Senator McCleli^vn. I did not mean to do that. 

Mr. Hoover. I understand that. I could not answer that question. 

Senator McClellan. I anticipated you might answer it that way, 
but I thought in view of the fact that you had supplied the informa- 
tion, that your Department had supplied it, and he evaluated it, it 
would be interesting to know if you placed the same evaluation on it; 
and yet you cannot make comment on that ? 

Mr. Hoover. I may point out that in my statement I did refer to 
the fact that in my conference with the then Attorney General in 



INTERLOCKING SUBVERSION IN GOVERNMENT 1149 

February 1946, when the Attorney General indicated he thought Mr. 
White should not serve, I stated I thought he was also unfit. That 
is as far as I went. 

Senator JNIcClellan. May I ask you this further question. As I 
understand your testimony, there was never any conference with you 
or any suggestion to you for any arrangements with the FBI that 
the man be kept in Government service in order to afford the FBI 
an opi^ortunity for further surveillance? 
Mr. Hoover. That is absolutely correct. 

The Chairman. Are there any further questions ? 

Mr. Morris. Yes, Mr. Chairman, I have some questions. 

Mr. Hoover, you stated in your statement today that from Novem- 
ber 8, 1945, until July 24, 1946, 7 communications went to the White 
House bearing on espionage activities wherein Harry Dexter AVhite's 
name was specifically mentioned. 

Mr. Hoover. That is correct. 

Mr, Morris. I think in the course of your statement also you struck 
an emergency note in several of those. Knowing your function and 
knowing what the function of the FBI is, could you tell us if there 
was anything more that you could have done to alert the executive 
branch of the Government to the dangerous underlying security 
situation which you have so well described here today ? 

Mr. Hoover. As I indicated, when the letter of November 8, 1945, 
was written, that was the so-called preliminary flash of the fact that 
there was a risk to the security of the country as indicated by informa- 
tion received by us from reliable informants. That was followed 
by two memorandums delivered on December 4, 1945, and February 
4, 1946. As additional information came in during the subsequent 
months, that information was compiled in report or letter form and 
transmitted, as I have indicated in my statement, to the White House, 
to the Attorney General, and to the Treasury Department, about 
Harry Dexter White. That is our regular procedure. 

Mr. Morris. And there is nothing more you can do, is that right? 

Mr. Hoover. There is nothing more I can do. All I can do is 
submit the information. We do not evaluate, we do not recommend. 
We do not reach any conclusions as to the information contained in 
the reports. 

Mr. Morris. If you had made a public protest of any kind, you 
would have been clearly outside of the scope of your authority? 

Mr. Hoover. It would have been most presumptuous to make a 
public protest. I am merely a subordinate official of the Attorney 
General. I do not make the policy. I am advised of the policy to 
be followed. 

Mr. Morris. Mr. Hoover, we have asked Mr. Brownell if he would 
supply us with certain information concerning some of the other 
individuals involved in our investigation, namely, Mr. Glasser, Mr. 
Coe, Mr. Victor Perlo, and several others. As far as you know, if 
we continue to bring forth into the record the various details on these 
people who have been exposed and who are some of the cases brought 
before the committee, there will be no violation of security arrange- 
ments as far as you know ? 

Mr. Hoover. I would think there would be no violation of security 
arrangements so far as indicating to the committee the dissemination 



1150 INTERLOCKING SUBVERSION IN GOVERNMENT 

of those reports. I would be very much opposed to the production 
of the actual report. I have alwaj^s resisted that. 

Mr. Morris. That is ; as we have been doing ? 

Mr. Hoover. Yes. 

The Chairman. Any further questions? Senator McClellan, any 
further questions? 

Senator McClellan. No, 

The Chairman. Mr. Sourwine? 

Mr. Sourwine. I have just one question. 

Mr. Hoover, in your prepared statement you may remember at the 
top of page 8, as the copy was handed out, you said. 

In fact, I took a strong stand because of premature disclosures that would 
result if prosecution were initiated, for the following reasons. 

It occurs to me that there is a possible room for misunderstanding 
there, and I want to ask if this is a correct understanding of what you 
say. You took a strong stand in favor of ousting subversives from 
Government without waiting for a trial or for sufficient evidence to 
convict in court? 

Mr. Hoover. I was opposed, Mr. Sourwine, to the disclosure, either 
as new items — and there had been a number of leaks that had ema- 
nated from the Department of Justice and other agencies of the Gov- 
ernment, upon cases in which we were then actively engaged. I also 
opposed the production in court at that time, or presentation to a 
grand jury, of some of this material, because of its highly confidential 
sources. Those sources could not be produced in court because of the 
nature of them. That is the position I took as to that. I never did at 
any time, and tlie records of the Bureau will conclusively sustain this 
statement, ever recommend to any agency of the Government or ask 
any agency of the Government to retain in its service any employee to 
aid the FBI in the conduct of any investigation. 

The Chairman. Any further questions? 

If not, we thank you, Mr. Hoover, for appearing, and you are 
excused. 

Mr. Hoover. Thank j^ou very much, indeed. 

The Chairman. In its report on "Interlocking Subversion in Gov- 
ernment Departments," the subcommittee said this : 

Almost all of the persons exposed by the evidence had some connection which 
could be documented with at least one — and generally several — other exposed 
persons. They used each other's names for reference on applications for Federal 
employment. They hired each other. They promoted each other. They raised 
each other's salaries. They transferred each other from bureau to bureau, from 
department to department, from congressional committee to congressional com- 
mittee. They assigned each other to international missions. They vouched for 
each other's loyalty and protected each other when exposure threatened. They 
often had common living quarters. Tliere was a group that played handl)all 
together. There was another group whose names appeared together in a tele- 
phone finder (p. 21, report). 

Harry Dexter White was at the center of all this activity. His name 
was used for reference by other members of the ring, when they made 
applications for Federal employment. He hired them. He promoted 
them. He raised their salaries. He transferred them from bureau to 
bureau, from department to department. He assigned them to inter- 
national missions. He vouched for their loyalty and protected them 
when exposure threatened. He played handball with them. His name 



INTERLOCKING SUBVERSION IN GOVERNMENT 1151 

appeared, alonjr with those of Frank Coe, Harold Glasser, Harry 
Magdoff, Lee Pressman, Abraham George Silverman, and William 
Lndwig Ullmann, in the telephone finder of Nathan Gregory Silver- 
master. 

All of these latter were named as participants in the Communist 
underground conspiracy in Government by either Elizabeth Bentley 
or Whittaker Chambers, or by both. All of them, save Pressman, in- 
voked the fifth amendment, on grounds of self-incrimination, when 
asked on the witness stand about the Bentley-Chambers statements. 
Pressman acknowledged that he had been a Communist while serving 
in Government. 

Here are White's own comments made when he appeared before the 
Committee on Un-American Activities, August 13, 1948, about these 
and other persons accused of participation in the conspiracy. 

Solomon Adler : "He has worked for me for some 10 years." 
Frank Coe : "I tried to get him to leave his teaching and come to the Treasury 
when the war broke out * * * He happened to be my assistant * * * A very 
charming chap and a very fine chap * * * A man of fine character." 

(Coe refused, on grounds of self-incrimination, to acknowledge all 
connections with White when he appeared before the subcommittee in 
New York City on October 24, 1952. He also refused on the same 
grounds to answer a question as to whether he is "presently engaged 
in subversive activities" (Hearings on Activities of United States 
Citizens Employed by the United Nations, p. 240).) 

Lauchlin Currie : "I have known Lauchlin Currie for many years. He and 
I taught at Harvard together and were students there together." 
Irving Kaplan : "We used to play ball." 

(Kaplan also refused to acknowledge any connection with White, 
his former superior in the Treasury's Division of Monetary Research, 
when he appeared before the subcommittee. Like Coe, Kaplan said 
it might incriminate him to answer truly the question as to whether he 
was presently engaged in espionage against the United States (p. 12, 
Keport on Interlocking Subversion in Government Departments).) 

Abraham George Silverman : "I asked his superior whether he could not 

release him for a couple of months to help us get started." 
William H. Taylor : "Bill Taylor worked for us." 
William L. Ullmann : "Ullmann I employed, knowing him myself." 
Victor Perlo: "He was taken on (by the Division of Monetary Research) if 

I remember correctly, because they needed somebody to concentrate on the 

possibilities of boom and bust in the United States." 

(As the report on "Interlocking Subversion in Government De- 
partments" points out on page 32, Perlo is "now an open propagandist 
for the Soviet world conspiracy." He invoked the fifth amendment 
on all questions concerning his participation in the conspiracy.) 

Lee Pressman : "I know Lee Pressman well." 

Alger and Donald Hiss : "I know them both." 

Sonia Gold : "She worked for the Division for a while." 

Harold Glasser : "Harold Glasser was employed in my division. * * * The 
FBI came to see me about him. I do not remember the year ; must have been 
close to 1940. * * * They wanted to know whether he was — I imagine what they 
were attempting to ascertain was whether he was a Communist. * * * And their 
questions were in that direction, whether in my judgment he had done anything 
that could be regarded as disloyal or anything of that kind. I said no, that 
Glasser was and Glasser is an extremely competent and able economist, one 
that I was very proud to have in my service." 



1152 INTERLOCKING SUBVERSION IN GOVERNMENT 

(In Glasser's testimony before the subcommittee, it was shown by 
documents that he had been repeatedly promoted, given salary raises, 
and "excellent" ratings by White. White also sent Glasser on Inter- 
national missions for the Treasury. Glasser refused to acknowledge 
any connection with White when he testified before the committee, on 
grounds of self-incrimination.) 

Nathan Gregory Silvermaster : "I was in his home a number of times. * * * 
He visited in my home a number of times * * * it was either 1942 or 1943 — I do 
not think it was as late as 1944; I think 1942 or 194.3 — Mr. Silvermaster spoke to 
me saying that he was being asked to resign from the Board of Economic Warfare 
on the ground that he was being accused of being a Communist ; and he asked 
whether I could not be of some assistance to get his name cleared. He had never 
impressed me as a Communist ; he was an able economist and interested in world 
affairs. We had many discussions. 

"I said to him — well, I was a little taken aback, and I said, *Well, are you a 
Communist.' He said, 'No.' I said, 'Well, what is there that you can give me or 
show me or what charges have been made? I cannot do anything for you unless 
I know something about your background, more than I did.' He said he would 
send me a copy of a reply which he made, I think, to the Civil Service Commission. 
I am not quite sure. 

"He subsequently sent me a 10- or 20-page— It was a fairly long statement, in 
which there was, prefacing each paragraph, an allegation or a claim or a state- 
ment, apparently made by somebody, I would judge from the paper that he had 
access to the charge that was made. And then his reply was set up there. 

"After reading the reply it convinced me of the integrity of the man and that 
he was not a Communist. 

"I then went to Mr. Herbert Gaston, who was Assistant Secretary of the 
Treasury, and on the Loyalty Board, and a fairer and more conscientious man 
never served the Government, as anybody who knows or who happened to know 
Mr. Herbert Gaston would testify. I went to him and I said this man was being 
asked to resign from the Board — I think it was subsequent to that — and I said 
he was being asked to resign now. * * *" 

(A short while after the events described here. White took Silver- 
master with him to Bretton Woods, N. H., "to act as one of the tech- 
nical secretaries to the United States delegation of the United Na- 
tions Monetary and Financial Conference'' (hearings, p. 174.) 
Silvermaster has been repeatedly identified by Miss Bentley and 
others as a key figure in the Soviet underground apparatus almost 
since the days of the Russian Revolution. He pleaded self-incrimina- 
tion to all questions about his conspiratorial activities.) 

The subcommittee learned that the Federal Bureau of Investiga- 
tion received derogatory security information concerning White — as 
well as Alger Hiss, Magdoff, Halperin, and Glasser, as long ago as 
1941 and 1942. In 1945, Elizabeth Bentley told her story of the 
Communist underground in Govenrment, with White as a key figure, 
to the Federal Bureau of Investigation. Miss Bentley and Whittaker 
Chambers subsequently made repeated identifications of White as a 
Communist conspirator in many public hearings before this and 
other committees of Congress. Miss Bentley told the subcommittee 
that White was one of "our best avenues" for placing concealed Com- 
munists in strategic Government positions. She also told the subcom- 
mittee that White got secret information for transmittal to the Soviets 
from "at least 7 or 8 agencies" because he had persuaded Secretary 
Morgenthau to exchange this information (Rept., pp. 4 and 18). 

White made a blanket denial of all connections with the Commu- 
nist underground when he took the witness stand in 1948. A few 
days after his denial, White died. Subsequently, notes written in his 
own hand were found among the "pumpkin papers" which Chambers 



INTERLOCKING SUBVERSION IN GOVERNMENT 1153 

produced to prove the assertion that they supplied him (Chambers) 
with stolen Government documents for transmittal to Moscow. (IPR 
hearings, p. 5489 ff). 

In his 11 years of Government employment, White rose from eco- 
nomic analyst in the Treasury at $5,700 per annum to Assistant Sec- 
retary of the Treasury at $9,000 (Government hearings, p. 947). 

In 1945, White was nominated by the President of the United States 
for the newly created post of United States Executive Director of the 
International Monetary Fund (ibid.). The New York Times of 
April 9, 1947, reported that he had received this post, "as a reward for 
his work." 

Here are some of the roles White played as a Government official : 

On September 30, 1941, the Department of State chose White as chief 
of an economic mission to the Government of Cuba "in connection with 
monetary and banking questions" (hearings, p. 952). 

On December 15, 1941, Secretary of the Treasury Morgenthau, 
ordered him to "assume full responsibility for all matters with which 
the Treasury Department has to deal having a bearing on foreign 
relations" (report, p. 29). 

On February 25, 1943, Secretary Morgenthau instructed White "to 
take supervision over and assume full responsibility for Treasury's 
participation in all economic and financial matters (except matters 
pertaining to depository facilities, transfer of funds and war expendi- 
tures) 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 likely to operate. "This will, of course," wrote the 
Secretary, "include general liaison with the State Department, Army 
and Navy, and other departments or agencies and representatives of 
foreign governments on these matters" (report, p. 30). 

He was also the official Treasury rejDresentative on the following 
interdepartmental and international bodies: The Interdepartmental 
Lend-Lease Committee ; the Canadian- American Joint Economic Com- 
mittee; the Executive Committee on Commercial Policy; the Execu- 
tive Committee and Board of Trustees of the Export-Import Bank; 
the Interdepartmental Committee on Inter- American Affairs ; the Na- 
tional Resources Committee; the Price Administration Committee; 
the Committee on Foreign Commerce Regulations ; the Interdepart- 
mental 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 
Liberation Areas Committee; the OSS Advisory Committee; the 
United States Commercial Corporation ; the Interdepartmental Com- 
mittee on Planning for Coordinating the Economic Activities of 
United States Civilian Agencies in Liberated Areas (report, p. 30). 

When the Treasury sought a man to represent it as adviser to the 
United States delegation at the founding of the United Nations in 
San Francisco, White was chosen. 

Between 1935 and 1943, White made many trips abroad, in both 
hemispheres, on behalf of the United States Government. He went to 
France, Belgium, the Netherlands, and the British Isles, to north 
Africa and South Africa, to Cuba, Brazil, and Mexico. 



1154 INTERLOCKING SUBVERSION IN GOVERNMENT 

In February and March of 1947, White visited Costa Eica, Nica- 
ragua, Guatemala, Mexico, Panama, Ecuador, Peru, Bolivia, and Chile. 
He traveled as a representative of the International Monetary Fund, 
for the purpose of consultation on exchange practices with the various 
member countries. 

On April 3, 1947, Wliite appeared as United States Executive Direc- 
tor of the International Monetary Fund before the Committee on 
Finance of the United States Senate. The committee was inquiring 
"into the relationship of the trade agreements system and the pro- 
posed international organization charter." 

The quastioning related entirely to this subject. There was nothing 
in the record to indicate that any Senator had been appprised of the 
fact that White was a key figure in the Communist underground ap- 
paratus. 

On November 12, 1953, the Senate Committee on Banking and 
Currency issued a statement with respect to the contents of the 
committee files relative to the nomination of Harry Dexter White, of 
Maryland, to be United States Executive Director of the International 
Monetary Fund. 

The statement said : 

A check has been made of all the committee files. There is no record that a 
hearing was held on the nomination or that the nominee appeared before the 
committee or that a biographical sketch was submitted on behalf of the nominee. 

The nomination reference and report card in the committee files contains the 
following pencil notations : "OK Tydings" and "OK Radcliffe." This appears 
to be in line with the customary practice of senatorial committees to check with 
the home-state Senators of all nominees before taking action. 

The Chairman. That concludes the making of our record for today. 
I believe the evidence and the testimony that we have heard here 
today will be of great benefit to this committee in its future work, 
which we intend to continue in the same careful manner in which this 
committee has been operating for the past 3 j'ears. 

So at this time, if there is no further business 

Mr. Morris. Mr. Chairman, may I announce to the committee that 
tomorrow the committee plans to introduce into the record certain 
letters written by John Snyder, former Secretary of the Treasury. 
Mr. Snyder has been asked if he will appear here tomorrow at 10 : 30 
in executive session, and 11 o'clock in open session, to add any testi- 
mony of his to the letters as they go into the record. 

The Chairman. At this time we will stand adjourned until 10:30 
tomorrow morning, when we will meet in executive session, followed by 
an open session at 11 o'clock. 

(Wliereupon, at 4 : 46 p. m., the hearing was recessed until 10 : 30 
a. m., Wednesday, November 18, 1953.) 



INTEKLOCKING SUBVERSION IN GOVERNMENT 

DEPARTMENTS 



WEDNESDAY, NOVEMBER 18, 1953 

United States Senate, 
Subcommittee To Inn^estigate the Administration 

OF THE Internal Security Act and Other Internal 
Security Laws of the Committee on the Judiciary, 

Washington^ D, G. 

The subcommittee met at 11 a. m., pursuant to recess, in room 318 
Senate Office Building;, Senator William E. Jenner (chairman of the 
subcommittee) presiding. 

Present: Senators Jenner, Hendrickson, Butler of Maryland, and 
Johnston of South Carolina. 

Present also: Robert Morris, chief counsel; J. G. Sour^Yine, com- 
mittee counsel; Benjamin Mandel, research director; and Robert 
McManus, professional staff member. 

The Chairman. The committee will come to order. 

This session was called, among other things, for the purpose of put- 
ting into the record certain correspondence from the former Secre- 
tary of the Treasury, John W. Snyder. 

Mr. Snyder was not subpenaed to be here today, but I did try to 
reach him at his home and office by phone yesterday in an effort to see 
if he could come before the subcommittee to see if he had some ex- 
planation of these very serious letters signed by him. I was unable 
to reach him by phone and I sent telegrams, both to his home and to 
his office. Late last evening I received this telegram, dated Toledo, 
Ohio, Xovember 17, which I want to read into our record : 

Your telegram received too late for me to arrange my affairs to permit me to 
accept your invitation to be present at 10 : 30 a. m. tomorrow at the executive 
session of your committee. In connection witti your present hearings, however, 
I want you to point out that the record clearly shows that within approximately 
18 months after I became head of the Treasury Department and its 116,000 
employees, to the best of my knowledge all suspected subversives were separated 
from the Department and none have been found, so I am advised, in the De- 
partment since I left. I shall, of course, be happy to furnish your committee 
any facts in my possession which you desire and to answer any questions you or 
your committee may wish to ask me. 

Signed "John W. Snyder." 

Now, Mr. Morris, since Mr. Snyder is not here, I suggest that we go 
ahead and complete our record on these letters referred to. 

Mr. Morris. Mr. Chairman, I might say that some of these letters 
are in the record and others are not in the record. I would like at 
this time to read all the pertinent letters in order that they may appear 
at this point in the record of the hearings. 

1155 



1156 INTERLOCKING SUBVERSION IN GOVERNMENT 

However, Mr. Chairman, I think at the very outset before reading 
the letters about Harold Glasser I would like also to put in the record 
the summary in our report on Harold Glasser so that the committee 
will understand very clearly the relations between these letters and 
Harold Glasser. 

The Chairman. Proceed. j^ 

Mr. Morris. In the July 30, 1953, report, this committee sum- 
marized the Harold Glasser case as follows: 

The November, 1945, security memorandum made reference to 
Harold Glasser in 1945. It read : 

Bentley advised that members of this [the Perlo] group had told her that 
Hiss, of the State Department, had taken Harold Glasser, of the Treasurj' 
Department, and two or three others, and had turned them over to direct 
control by the Soviet represenatives in this country. 

Our report reads: 

When Miss' Bentley appeared before the subcommittee in 1951 and 1952, she 
testified in greater detail about Glasser : 

"Miss Bentley. In 1944 I took a group of i>eople I called the Perlo group * * *. 
One of the memliers of this group was a Mr. Harold Glasser in the Treasury. 
In the process of checking everyone's past, I found that Mr. Glasser had, at one 
time, been pulled out of that particular group and had been turned over to a 
person whom both Mr. Perlo and Charles Kramer refus'ed to tell me who it was, 
except that he was working for the Russians, and later they broke down and 
told me it was Alger Hiss" (I. P. R. hearings, pp. 441-442). 

Now, Whittaker Chambers, testifying before the committee under 
oath, stated that he had met Harold Glasser. 

In his book. Witness, published in 1952, Chambers writes : 

Harry Dexter White was the least productive of the four original sources. 
Through George Silverman, he turned over material regularly, but not in great 
quantity. Bykov fumed — 

I might mention for the benefit of the committee that Bykov is 
Colonel Bykov, who was the top man in the Soviet Military Intelli- 
gence in this country at that time — 

but there was little that he could do about it. As a fellow traveler. White was 
not subject to discipline. Bykov suspected, of course, that White was holding 
back material. Bykov said, "You must control him" — in the sense in which 
police "control" passports, by inspecting them. 

I went to J. Peters, who was in Washington constantly in 1937, and whom 
I also saw regularly in New York. 

The Chairman. Who was J. Peters ? 

Mr. Morris. J. Peters was one of Whittaker Chambers' superiors 
in the underground. I believe he was a Hungarian Communist. 
Mr. Morris (continuing the reading) : 

I explained the problem to him and asked for a Communist in the Treasury 
Department who could "control" White. I'eters' suggested Dr. Harold Glasser, 
who certainly .seemed an ideal man for the purpose, since he was White's assist- 
ant, one of several Communists whom White himself had guided into the 
Treasury Department. 

Peters released Dr. Glasser from the American Communist underground and 
lent him to the Soviet underground. Glasser s'oon convinced me that White 
was turning over everything of importance that came into his hands. Having 
established that fact, I simply broke off relations with Dr. Glasser. Later on, 
he was to establish a curious link between the underground apparatuses, current 
and past. Testifying before the McCarran connuittee in 1952, Elizabeth Bentley 
told this story. In 1944, she was working with what she identified as the Perlo 
group (after Victor I'erlo of the former Ware group). In the Perlo group was 
Dr. Harold Glasser. At one point Miss Bentley had made a routine check of 



INTERLOCKING SUBVERSION IN GOVERNMENT 1157 

the past activities of all the group members. The check showed that Dr. Glasser 
had ouce worked with a man whom both Victor Perlo and Charles Kramer (also 
a member of the group) at first refused to identify beyond saying that the un- 
known man was working with the Russians' * * * 

Now, Mr. Chairman, the subcommittee's report continues as follows : 

Glasser was subpenaed by the subcommittee on April 14, 1953, and invoked his 
privilege against self-incrimination when asked about all of this evidence and 
information. He also refused under privilege to tell the subcommittee the cir- 
cumstances surrounding his Government assignments within the United States 
or abroad. 

Now, Mr. Chairman, the letters I am referring to are as follows : 

The first is dated August 22, 1946. It is a letter from John W. 
Snyder, Secretary of the Treasury, to Mr. Harold Glasser, Assistant 
Director of the Division of Monetary Eesearch, Treasury Department. 

The Chairman. What is the date of that letter ? 

Mr. Morris. August 22, 1946, Mr. Chairman. 

The letter reads as follows : 

Sir : You are hereby appointed Director of Monetary Research with compensa- 
tion at the rate of $10,000 per annum, payable from the appropriation "exchange 
stabilization fund" effective today. 
Very truly yours, 

John W. Snyder, 
Secretary of the Treasury. 

The Chairman. I think our record should show when Mr. Snyder 
became Secretary of the Treasury. Do we have that information ? 

Mr. Morris. The best information I have, Mr. Chairman, is that 
he became Secretary of the Treasury in June 1946. I do not know the 
exact date. I had intended to ask him here today, but as you know, 
he is not here. 

Mr. Hoover stated yesterday on the stand that from November 8, 
1945, until July 24, 1946— 

during that same period 2 summaries on Soviet espionage activities went to the 
Treasury Department and 6 summaries went to the Attorney General on the 
same subject matter. 

This is dated August 22, 1946, and is subsequent to the date the 
summaries mentioned by Mr. Hoover were transmitted to the Treasury 
Department. 

]Mr. Chairman, the next letter is dated December 23, 1947. It is 
written by Harold Glasser to the Honorable Secretary of the Treasury, 
and reads as follows : 

Mt Dear Mk. Seceetaey : It is with the deepest regret that I find it necessary 
to submit my resignation from the Treasury Department to be effective December 
31, 1947. 

The Chairman. When did these reports go to the Treasury Depart- 
ment on these men ? 

Mr. Morris. According to Mr. Hoover, they were in the period No- 
vember 8, 1945, to July 24, 1946. 

The Chairman. And this letter is in 1947 ? 

Mr. Morris. This letter is in 1947. In the meantime, Mr. Chairman, 
according to Mr. Brownell's summary yesterday, in July 1946, Glasser 
attended the UNERA conference in Geneva, Switzerland, as a member 
of the United States delegation. In January 1947, Glasser went to 
Trieste as a member of the American delegation to the four-power 
study of the economy of Trieste. At the special request of the State 



1158 INTERLOCKING SUBVERSION IN GOVERNMENT 

Department in March and April of 1947, Glasser attended the Moscow 
meeting of the Council of Foreign Ministers as an adviser to the 
United States Secretary of State, which the record at that tim.e showed 
was General Marshall. 

This letter, as I stated before, is dated December 23, 1947, and I 
continue to quote from it : 

The Treasury Department has given me extraordinary opportunities during 
the past 11 years for the development of my professional skill, for experiences 
with all parts of the world, and for participation in the solving of important 
problems of the war and postwar period. I owe more to the Treasury than I 
can possibly say in a letter of resignation. To you particularly, Mr. Secretary, 
I am grateful for the friendship and guidance you have so kindly given to me. 
As I enter private employment, I can only hope my activities will be a credit 
to thi' Treasury Department and justify the confidence you and the Department 
have placed in me. 
Eespectfully, 

Harold Glasser, 
Assistant Director, Office of International Finance. 

On December 26, 1947, Mr. Snyder wrote to Mr. Harold Glasser 
as follows : 

Dear Mr. Glasser : It is with regret that I am accepting your resignation as 
Assistant Director of the Office of International Finance to be effective Decem- 
ber 31, 1947. 

You have been associated with the Treasury for a long period of time, and I 
am fully aware of the many valuable contributions you have made in the 
monetary field. It is gratifying to know that your Treasury experience has been 
pleasant and interesting, and I am sorry that circumstances have led you to 
seek connections outside of the Government. I wish to assure you that we will 
miss the fine work that you have done here. 
Best wishes for happiness and success in your new work. 
Sincerely, 

John W. Snyder, 
Secretary of the Treasury. 

The Chairivian", At this time, where was Glasser employed ? 

Mr. Morris. As Mr. Snyder points out there, he is accepting his 
resignation as Assistant Director of the Office of International Finance 
in the Treasury Department. 

On December 26, 1947, John W. Snyder wrote to Mr. H. L. Lurie, 
who was the executive director. Council of Jewish Federations and 
Welfare Funds, Inc., New York 19, N. Y. : 

Dear Mr. Lurie : I am very glad to give you my opinion of Mr. Harold 
Glasser's technical ability, personality, and analytical qualities, as requested in 
your letter of December IS. 

Glasser's technical ability and analytical capacity are of a very high order. 
He is a well-trained economist, and during many years of intensive work in the 
field of general economic policy he has.acquii'ed an unusual ability to apply a 
highly developed analytical technique to the solution of economic problems. He 
has held very responsible positions in the Treasury, as you know, and has also 
been assigned to important overseas missions. We have relied heavily on his 
judgment, his estimate of situations, and his recommendations, and I regret that 
liis decision to leave the Government service is depriving us of him. 

I do not believe I need say very much to you about Mr. Glasser's personality, 
since you have already met and tnlked with him. He had no hidden facets to 
his personal qualities which you would discover only after longer association with 
him. He served as Secretary of the National Advisory Council and as chairman 
of its staff committee. These were exacting assignments calling for skill in 
interdepartmental relationships. I felt that Glasser was successful in this phase 
of his work. 

Sincerely yours, 

John W. Snyder, 
Secretary of the Treasury. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1159 

The Chairman. And yet these reports that you have referred to 
were in the hands of the Treasury at the time this letter was written ? 

Mr. Morris. According to Mr. Hoover, yes. 

Now, Mr. Chairman, a lapse takes place here of about 8 months. 
The next letter is from H. L. Lurie, the executive director of the fund 
I just described. In the meantime, Elizabeth Bentley has testified 
publicly before the House Un-American Activities Committee, and, 
as we have seen in our record, the testimony she gave there in open 
session was similar to the information she had given to the FBI some 
years before. 

Mr. Lurie writes to Mr, Snyder on August 3, 1948, as follows : 

Dear Mr. Snyder : You were kind enough on December 26, 1947, to reply to 
our letter asking for reference on Mr. Harold Glasser. We engaged Mr. Gla.sser 
as tlie Director of our Institute on Overseas Studies beginning in January 1948 
and he has continued to fill that position most competently and effectively. We 
have been more than pleased by his performance, his broad understanding and 
his competence both for the analysis of problems and for his relationships with 
the organizations and persons with whom he deals. 

The information recently given by Miss Bentley to the Senate committee has 
been very disturbing. I have been informed that the charges made as they relate 
to Mr. Glasser are not new and that Miss Bentley had previously offered them to 
various bureaus of the Government. I understand also that Mr. Glasser was 
thoroughly investigated as a security risk while he was serving in the United 
States Treasury. It would be very helpful to us at this time if we could receive 
an additional statement from you bearing upon this aspect of Mr. Glasser's career 
in Government service. 
Sincerely yours, 

H. L. Ltjkie, 
Executive Director. 

Mr. Snyder answered that letter on August 10, 1948, 7 days later. 
He said : 

Mr. H. L. Lurie, 

Executive Director, Council of Jewish Federations 
and Welfare Funds, Inc., 

Neto York, N. Y. 
Dear Mr. Lurie: I wish to acknowledge your letter of Augiist 3. 1948, with 
reference to my letter of December 26, 1947, regarding Mr. Harold Glasser, a 
former official of the Treasury Department. 

No information regarding Mr. Glasser has been called to our attention that had 
not previously been considered by the Department prior to my letter to you of 
December 26, 1947, and all I can do at this time is reaffirm the appraisal I made 
of him in my earlier letter. 

I am very glad to learn that Mr. Glasser's services have proven so satisfactory 
to the council and that he is rendering for you the same high type of work he 
performed for the Treasury. 
Sincerely, 

John W. Snyder, 
Secretary of the Treasury. 

Mr. Chairman, there is one other letter that was in the record at 
the time. I would like to reintroduce it at this time because it bears 
directly on this matter. On December 23, 1947, Dean Acheson wrote 
to Mr. H. L. Lurie, as follows : 

Mr. H. L. Lurie, 

Executive Director, 

Council of Jemish Federations and Welfare Funds, Inc., 

New York, N. Y. 

Dear Mr. Lurie : I knew Mr. Harold Glasser during my 7 years in the State 
Department as Assistant Secretary and Under Secretary. We worked together 
on the problem of foreign-funds control and other economic warfare matters, 
and he was a member of the United States delegations, of which I was Chair- 



1160 INTERLOCKING SUBVERSION IN GOVERNMENT 

man, to the First and Second UNRRA Council meetings. During tliese Council 
meetings I was impressed with his technical competence and his ability to worlj 
under the strain of long hours and difficult negotiations, carrying a large part 
of the burden of the Financial Committee of the Council. He was a good work- 
ing companion, maintaining an extraordinary evenness of temper and good 
humor, under what were sometimes very trying circumstances. I am sure that 
he is able to approach problems in a well-organized and analytical manner and 
that you will find him a first-rate economist. 
Sincerely, 

Dean Acheson. 

Now, Mr. Chairman, as you know, the committee has asked Mr. 
Brownell if he would supply us with a summary of the FBI report 
on Harold Glasser and tell us with particularity when and to whom 
those FBI security reports were distributed in the executive branch of 
the Government. 

The Chairman. I think our record is complete on that. 

Mr. Morris. The next case, Mr. Chairman, will be that of Frank 
Coe. 

VIRGINIUS FRANK COE 

The Berle memorandum of 1939 contains the names of Frank Coe 
and his brother, Charles (Bob) Coe. In 1948, Miss Bentley publicly 
brought forth in testimony that Frank Coe was a member of her 
espionage ring. Yet, when the subcommittee subpenaed Coe in De- 
cember 1952, he held the position of Secretary of the International 
Monetary Fund at $20,000 a year. 

Virginius Frank Coe first worked for the United States Government in 1934, 
Since then he has held positions in Federal Security Administration, the Na- 
tional Advisory Defense Council, Monetary Research Division of the Treasury 
Department (Assistant Director and Director), Joint War Production Commit- 
tee of the United States and Canada (Executive Secretary), Board of Economic 
Warfare (assistant to the Executive Director), Foreign Economic Administra- 
tion (Assistant Administrator). He was the Technical Secretary of the Bret- 
ton Woods Monetary Conference in 1944 when the articles of agreement were 
drafted setting up the International Monetary Fund. The International Mone- 
tary Fund handles assets of between $7 and $8 billion and it is a specialized 
agency of the United Nations. 

Coe refused to answer, on the ground that the answers might incriminate him, 
all questions as to whether he was a Communist, whether he had engaged in 
subversive activities, or whether he was presently a member of a Soviet espionage 
ring. He refused for the same reason to sa.v whether he was a member of an 
espionage ring while technical secretary of the Bretton Woods Conference, 
whether he ever had had access to confidential Government information or 
security information, whether he had been associated with the Institute of Pacific 
Relations, or with individuals named on a long list of people associated with the 
organization. He testified as to how he got his first Government employment, 
but refused to say how he obtained his siibsequent positions. Coe was dismissed 
by the International ftlonetary Fund a few days after his testimony on Decem- 
ber 3, 1952. 

Mr. Chairman, we have asked Mr. Brownell if he would supply this 
committee with a summary of the FBI report and the dates and par- 
ticulars as to when and to whom the various FBI reports on Coe were 
sent to in the executive branch of the Government. 

Senator Johnston. May I ask one question in regard to these letters, 
Mr. Chairman? 

The Chairman. Senator Johnston. 

Senator Johnston. Do you have the original letters ? As you know, 
that is the best evidence. 

The Chairman. The original letters? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1161 

Senator Johnston. Yes. In other words, if somebody should raise 
that question later 

Mr. Morris. Senator, we had hoped that Mr. Snyder would be here 
today and acknowledge the letters. As I say, he could give any ex- 
planation he may have of the letters. We have taken the letters from 
the official Government files. 

The Chairman. These are not necessarily the original letters, but 
from the official Government files. 

Senator Johnston. I am quite sure that the Chairman realizes that 
if they pin us down on the best evidence rule we would have to produce 
the originals. 

The Chairman. Of course, we are not a court of law and that is why 
we asked Mr. Snyder to be here today to explain, affirm, or deny. 

Mr. Morris. The third case we have taken up with the Department 
of Justice is the case of Victor Perlo. 

Senator Butler. Mr. Chairman, I would like to know where former 
Attorney General Clark fits into this picture, and whether or not you 
have any plans in connection with Justice Clark. 

The Chairman. I can answer that question in this way to you. 
Senator Butler, and the other members of the committee : This com- 
mittee proceeds in a very careful manner. We are not interested in 
the political byplay. We are only interested in facts, the truth. I 
have conferred with Mr. Morris and our staff on this particular matter, 
and I believe that until we get these reports which we have asked for 
from Attorney General Brownell that we are not ready yet to go into 
the Clark angle of this case. We are not closing any doors, and we 
intend to bring out all the evidence and place it in the record concern- 
ing this matter. 

Senator Butler. Thank you, Mr. Chairman. 

Mr. Morris. Mr. Chairman, as I have stated, the other case is the 
case of Victor Perlo. Miss Bentley had told the FBI in November 
1945, that he was the head of one espionage ring. She testified to that 
publicly in 1948. 

Whittaker Chambers has testified that Victor Perlo was a member 
of the original Harold Ware cell of the Communist Party in the 1930's. 
Nathaniel Weyl, who was also a member of that cell, has testified that 
Victor Perlo was in fact a member of the Communist underground. 

When Victor Perlo was subpenaed before this committee, he invoked 
his privilege under the fifth amendment in response to all of the evi- 
dence that the committee confronted him with at that time. I have 
here a short sketch of Mr. Periods career in Government. It appears 
at page 394 of our hearings. It reads as follows : 

Mr. Morris. Mr. Chairman, I would like to point out here that all during this 
period Mr. Perlo's salary is increasing. When he entered the Government with 
the NRA, his salary, according to this, was $'2,.300. He got a promotion to $2,600 
3 months after he went there. With HOLC, he was getting $2,000. associate eco- 
nomic analyst, after promotion $2,800, after another promotion, $3,100. When he 
was an expert with the Department of Commerce he was getting $4,000 and it is 
now 1939. When he was a senior agent in the Commerce Department, foreign 
and domestic commerce branch, he was drawing $4,600. Then as principal eco- 
nomic analyst for the Council of National Defense Advisory Committee he was 
drawing $5,600 ; head economist for the Office of Price Administration, $6,500 ; 
and in this last assignment that we have been talking about his salary is $6,500. 

32918°— 54— pt. 16 7 



1162 INTERLOCKING SUBVERSION IN GOVERNMENT 

Yesterday Mr. Brownell mentioned, and I quote : 

How was Glasser's access to classified materials limited? As far as we have 
been able to determine, it was not. Records in the Department indicate that late 
in 1946 Glasser, described as a member of the espionage ring, received a copy of 
the FBI report on Victor Perlo which descril)ed him as a member of the Soviet 
espionage ring. Perlo stayed on in the Treasury Department until March 27, 
1947, and then left to accept the post of Treasurer of the Intergovernmental 
Committee on Refugees. 

The CiiAiRMAisr. Mr. Snyder's telegram is not exactly accurate in the 
fact that there were no subversives in the Treasury Department after 
he became Secretary of the Treasury. 

Mr. Morris. He did mention a limited period there. I think he 
mentioned a period of 18 months. 

The Chairman. We will have to call him in at some later time to 
get this matter straightened out. 

Mr. Morris. In connection with that, Mr. Chairman, I would like to 
present to the committee what I think is a very important case and yet 
we have not made that one of our conclusive cases. In view of the im- 
portance of the position that the man held, I think the committee at 
least should have a summary of the case of Solomon Adler. 

When Whittaker Chambers testified before the Internal Security 
Subcommittee on May 24, 1951, the question put to him was : 

Mr. Morris. In the course of that experience, Mr. Chambers, did you ever hear 
about or encounter one Solomon or Sholem Adler? 

Mr. Chambers. Jay Peters, who was the head of the underground section of 
the American Communist Party, told me, I believe in 1937, that an employee of 
the United States Treasury whom he called Scholma, which I presume is spelled 
S-c-h-o-l-m-a, Adler, was sending a weelily report to the American Communist 
Party. Scholma is a Jewish diminutive for the name Solomon. 

Miss Bentley testified before this committee during the hearings on 
the Institute of Pacific Relations in the year 1951. The question put 
to Miss Bentley was : 

Mr. Morris. Miss Bentley, do you know Sol Adler? 

Miss Bentley. Not personally ; no. 

Mr. Morris. Miss Bentley, did you know about Sol Adler? 

Miss BE^^TLEY. Yes. Solomon Adler was, again, a member of the Silvermaster 
group. He paid his dues thi'ough Mr. Silvermaster to me. Most of the time I 
was in charge of that group he was over in China. But he did send reports to 
various people, including Harry Dexter White in the Treasury Department, 
which were relayed on to us. 

Mr. Morris. Now, what were the natures of those reports. Miss Bentley? 

Miss Bentley. Reports on internal Chinese politics, mainly, as to what the 
Nationalists were doing and what the chances were for the Eighth Army people 
and the Communists in China. 

Mr. Morris. What was his Communist assignment in China? Can you tell us 
a little bit about that. Miss Bentley? 

Miss Bentley. When he went over there, he was told — that was before my day 
so I didn't participate in it — he was told that he should follow the party line 
in China, and carry out to the utmost whatever Moscow wanted in the Far East. 

Senator Eastland. Who was that? 

Mr. Morris. This is Sol Adler, Senator, who was one of the high officials in 
the Treasury Department, and who was in charge of the Treasiu-y Department 
for China. 

The Chairman. Very well. 

Mr. Morris. I wonder if you can tell us something more about Solomon Adler, 
Miss Bentley? Anything more about Solomon Adler that you can tell us would 
be helpful. 

Miss Bentley. In what respect? 

Mr. Morris. About his connection with the organization. 






INTERLOCKING SUBVERSION IN GOVERNMENT 1163 

Miss Bentley. I understnnd that ho liad been connected with the organization 
fur a few years before I came along. 

He not only was connected with the Silvermaster organization, but he had 
Communist contacts within China. One of those was Chi. 

Mr. Chairman, I will explain who he is later. I think those who 
were members of the subcommittee when it was holding hearings with 
respect to the Institute of Pacific Relations will recall that Dr. Ch'ao 
Ting Chi was one of the important Communist agents operating in 
the United States. He is now an official of the Chinese Communist 
Government. 

Now, to continue with the quotations from the testimony of Miss 
Bentley, Mr. Chairman. 

I have forgotten his first name. 

Mr. Morris. Dr. Ch'ao Ting Chi? 

Miss Bentley. He was the man proposed to be the Chinese delegate to the 
United Nations. Is that the same one? 

Mr. Morris. That is right. 

Miss Bentley. Well, he had dealings with him, both in this country and in 
China, and with nuraei-ous others of the Communists in China, although he was 
supposed to cultivate the Nationalists on behalf of our own Government, and 
also to forward the Communist plan. 

He was really quite friendly, for example, with Madame Chiang Kai-shek. I 
remember one reix)rt that came through on Adler at one time that complained 
that he was not tending to business and influencing the quarters he should be. 
He was playing too much bridge with Madame Chiang Kai-shek. 

Mr. Chairman, all during 1951 and 1952, because of the impressive 
testimony from both. Mr. Chambers and Miss Bentley, together with 
other information that we had in our files, we made an effort to 
subpena Mr. Adler. However, he was out of the country all during 
that period 1*951 and 1952. 

The CuAiRMAX. Is he an American citizen ? 

Mr. Morris. He was a naturalized American citizen. I under- 
stand he was born in the British Isles and became a naturalized Ameri- 
can citizen just shortly before or shortly after he became employed 
by the United States Government. 

The Chairman. How long has he been out of the country ? 

Mr. Morris. All during this period of time we were in contact with 
the Passport Division of the State Department. We knew he was out 
of the country and we felt that was the best place of trying to de- 
termine whether or not he was returning. 

Senator Hendrickson. Has the State Department picked up his 
passport ? 

Mr. Morris. Yes, as a naturalized American citizen who has been 
out of the country for a period of 3 years. We were told that his pass- 
port expired on May 9, 1952 ; it had been issued on May 9, 1950. The 
extension was not granted and the Embassy was instructed to take up 
his passport and he has not applied for an extension. 

He is, I believe. Senator, subject to denaturalization proceedings. 
But inasmuch as he was, as I say, an important Treasury official right 
up until May 11, 1950, and in fact he was our Treasury representative 
in China and he was there all during the critical years, there were 
many questions we would have liked to ask Mr. Adler. I would like to 
sketch here, and this is something we have not been doing, the nature 
of the evidence we want to ask him about if he can come before the 
committee. 



1164 INTERLOCKING SUBVERSION IN GOVERNMENT 

The Chairman. You know it is the policy of this committee before 
Tve bring out evidence to give a man a chance to come before this com- 
mittee in private executive session before he is called in open session. 
This is a departure from that policy by this committee, but I think 
the departure is warranted because this man is out of the country and, 
as the record shows, the Passport Division of the State Department 
indicates that he has been out of the country long enough so that even 
his passport has been picked up and he is subject to being denatural- 
ized as an American citizen. 

So, if there is no objection, we will make the departure from our 
policy and we will receive this evidence on Solomon Adler. 

Senator Hendrickson. With the understanding that we are not 
establishing a precedent. 

The Chairman. I might say that here is a man we cannot get before 
our committee by subpena in executive private session. He has been 
out of the country for almost 3 years. Is there any objection, Senator 
Butler? 

Senator Butler. No. 

The Chairman. Is there any objection, Senator Hendrickson? 

Senator Hendrickson. No. 

The Chairman. Is there any objection, Senator Johnston? 

Senator Johnston. No. 

The Chairman. Proceed. 

Mr. Morris. The evidence of his connections with the Communist 
organization I have stated. Some of the other facts I think should 
be in the record at this time because of the importance of this par- 
ticular case. It seems that on May 11, 1950, he resigned for personal 
reasons from the Treasury Department after several clearances on 
loyalty. 

The Chairman. After several clearances on loyalty? 

Mr. Morris. Yes, sir. The records seem to show from the best 
efforts we have been able to put together on this, that he was era- 
ployed in the Treasury Department in December 1936, in the Division 
of Monetary Research under William L. Ullmann and Harry Dexter 
White. As you know, Ullmann was Silvermaster's assistant in the 
espionage ring. It is apparent that he came from England in 1933 
where his Russian parents lived. In February 1943 he was appointed 
an alternate American member of the Chinese Stabilization Board 
in Chungking. In 1941, he was the Treasury adviser to Emanuel 
Fox of that Board. In July 1944 the Department of State informed 
Adler he was designated as Treasury attache to the American Em- 
bassy at Chungking. In 1945, he became representative of the Secre- 
tary of the Treasury in China and the Far East in general in 
monetary matters. 

The records show here, and this is something that we have to 
establish, that he was sent to China under the direct authorization of 
Harry Dexter White. 

A United States State Department official, one of the high Ameri- 
can officials in China, has informed the security authorities — in other 
words, during the course of an investigation of Adler there were 
many interviews. I think, in fairness to the individuals interviewed 
at that time, I will give a description of who they were rather than 
saying who they are. I do that, Senator, so that you will just get a 
general picture of what Mr. Adler's role was in China at that time. 



I 



INTERLOCKING SUBVERSION IN GOVERNMENT 1165 

This one State Department official in Nanking with General 
Marshall from May 1946 to July 1947 stated that Adler was inti- 
mately connected with the political discussions held at that time as 
his knowledge of Chinese affairs, financial and otherwise, was exten- 
sive and accurate. 

Another high State Department official said that Adler's "ideologi- 
cal approach to Chinese problems was very realistic in that he was 
critical of various phases of the national government but was sym- 
l^athetic toward China generally." This State Department official 
felt these views coincided with those of other informed persons. Adler 
was fairly close to J. Franklin Eay of the office of Far Eastern Af- 
fairs, and acquainted with a certain Chinese who heads the present 
(1948) Chinese technical mission in Washington. 

Senator JoH>rsTON. What was the date of that report ? 

Mr. Morris. This is a summary of the loyalty files on Adler, 
Senator. 

Senator Johnston. What is the date of that report ? 

Mr. Morris. It was some time after May 11, 1950. I do not have 
the date. 

The Chairman. Are there any further questions? 
. Mr. Morris. Mr. Chairman, one other person, I think, we should 
mention, inasmuch as his name came up, is this Dr. Ch'ao-Ting Chi. 
In our Institute of Pacific Relations hearings we pointed out that 
Ch'ao-Ting Chi, who had been an employee of the Institute of Pacific 
Relations, was made secretary general of the American, British, Chi- 
nese currency stabilization fund. As I have stated, Chi was a Com- 
munist underground agent operating in the United States and is now 
an official of the Chinese Communist Government. The report I 
read showed that Mr. Adler became a member of that Board when 
Chi was the Secretary General of that Board. 

The Chairman. I want to put in our record the following: 

The following analysis will show the concentration of members of the under- 
ground ring of the Communist Party in the Treasury Department and par- 
ticularly in the Division of Monetary Research. 

Harry Dexter White became the first Director of the Division of Monetary 
Research in the Treasury when it was first established. The others who suc- 
ceeded him as Director were Frank Coe and Harold Glasser. Irving Kaplan 
was Assistant Director. William Ludwig Ullmann, Victor Perlo, Mrs. Bela Gold, 
and Irving S. Friedman were also attached to the Division of Monetary Re- 
search when' it was under the direction of White, Coe, and Glasser. 

Mr. Morris. Mr. Chairman, may I correct the record of yesterday? 

The Chairman. You may. 
. Mr. Morris. Mrs. Bela Gold and her husband have not been called 
before this committee in this present series of hearings and have not 
invoked their privilege under the fifth amendment as was indicated 
yesterday. We have not yet gotten around to calling the Golds. 

The Chairman (reading) : 

White, Gold, Glasser, Kaplan, Perlo, and Mrs. Gold were identified in sworn 
testimony as participants in the Communist conspiracy. Coe, Glasser, Kaplan, 
and Perlo invoked the fifth amendment when questioned about their participa- 
tion. White denied but was later proven to be implicated when his handwritten 
notes were found among the Chambers' pumpkin papers. 

In Attorney General Brownell's summary of the second FBI report, he said, 
"The report mentions that White was interviewed by the FBI in connection 
with the Amerasia case, particularly concerning Irving S. Friedman, who, ac- 
cording to the report, was known to be one of the sources in the Treasury De- 



1166 INTERLOCKING SUBVERSION IN GOVERNMENT 

partment's Section on Far Eastern Affairs that had been furnishing documents 
to Phillip Jacob Jaffe, editor of Ainerasia. White told the FBI that Friedman 
was an employee in the Treasury Department handling matters dealing with 
monetary affairs in the Far East and admitted that he had brought Friedman 
to the Treasury Department 5 or 6 years earlier. 

"It should also be recalled that Solomon Adler represented the Treasury De- 
partment in China and that Nathan Gregory Silvermaster was taken to the 
Bretton Woods Conference founding the International Monetary Fund by Harry 
Dexter White." 

Mr. Morris. Mr. Chairman, I would like also to put into the record 
at this time a copy of the letter that you addressed to Mr. Brownell 
on November 13, 1953, where you asked for the information about the 
records of Harold Glasser and Vir<;inius Frank Coe. 

The Chairman. We also asked him publicly yesterday about the 
Victor Perlo records. 

Mr. Morris. That is right. 

(The letter is as follows:) 

NOVEMBEB 13, 19."j3. 
Hon. Herbert Brownell, 

Attorney General of the United States, 

Department of Justice, Washington 25, D. C. 
My Dear Mr. Brownell : In pursuance to recent conversations of the last few 
days between our subcommittee and your deputy, Mr. William P. Rogers. I am 
enclosing herewith a digest of the cases of Harold Glasser and Virginius Frank 
Coe.' 

You will note that evidence in both cases is impressive and that they held high 
positions in Government well after 1945. Would you please let us iinow when 
the files of the Federal Bureau of Investigation and the department of Justice, 
in reference to these two individuals, were transmitted to the White House, to 
the Treasury Department, and other high oflacials of the Government? 
Sincerely, 

William E. Jenner, 
Internal Security Subcommittee. 

Mr. Morris. In view of what we know about Mr. Adler, would you 
also ask if they could supply us any information about Solomon 
Adler? 

The Chairman. Yes ; we want a complete picture. 

Mr. Morris. The other letter I want to offer for the record is a letter 
that you wrote to the Secretary of State, John Foster Dulles, asking 
that Igor Gouzenko be made available to this committee for ques- 
tioning. 

As you know, the State Department had turned us down. 

The Chairman. I think for the benefit of the members of the com- 
mittee, you ought to explain what has happened on that so they will 
be appraised of it. 

Mr. Morris. Mr. Gouzenko, Senators, is desired for questioning 
because we noticed that time and time again there is a reference in 
the various security documents which have come into our possession, 
to what Gouzenko has told the FBI about American espionage. He 
mentioned at one time specifically that an assistant in the office of the 
then Secretary of State Stettinius was a Soviet agent. The FBI had 
related that testimony to testimony about Alger Hiss. In addition, 
he has told about the atomic espionage rings that operated in the 
United States. All in all there was a great deal of reason or much 

1 Enclosure (pp. and 7, Report of the Internal Security Subcommittee on Interlocking 
Subversion in Government Departments). 



INTERLOCKING SUBVERSION IN GOVERNMENT 1167 

reason for us to conclude that Gouzenko could give valuable testimony 
to this committee about American espionage which is directly under 
the consideration of this committee. 

Now, at staff level, after Mr. Gouzenko had publicly stated in the 
American press — I think he gave an interview to a representative of 
the Chicago Tribune — he was quoted by that newspaper as saying 
he would be willing to talk to Senator Jenner's committee or Sena- 
tor McCarthy's committee. After we read that in the newspaper, 
we then made a formal request at staff level that Mr. Gouzenko be 
made available to us for questioning. 

The Chairman. You might explain that we went through chan- 
nels to our Secretary of State and asked him to request that Gouzenko 
be made available. 

Mr. Morris. That is right. The Canadian Government told us 
that everything that Gouzenko knew about American espionage was 
in the Koyal Commission Eejoort. 

The Chairman. The Canadian Government, in reply to Secretary 
Dulles' request that he be made available as a witness to this committee, 
stated in their reply to Dulles — you may proceed. 

Mr. Morris. That everything he knew appeared in the Royal Cana- 
dian Summary of Espionage in Canada. In our reply we pointed 
out to the Canadians that we did have evidence in our record that 
was not in that report and we had every reason to believe that 
Gouzenko knew other things that we did not know. So, on the basis 
of all of that information, on November 13, 1953, Senator Jenner 
addressed a letter to the Honorable John Foster Dulles, Secretary of 
State, in which he said : 

Deae Secretary : I am enclosing an exchange of correspondence which re- 
flects that Mr. Robert Morris, cliief counsel for the Internal Security Subcom- 
mittee, acting through your office, endeavored to interview Mr. I'^ior Gouzenko, 
former Soviet Code Clerk in Ottawa, now believed to be in the custody of 
the Canadian Government. Your department transmitted Mr. Morris' request 
to the Canadian Ambassador who, after notifying his Government, in turn, 
informed us of the Canadian Government's unwillingness to make Mr. Gouzenko 
available to the subcommittee for questioning either in Canada or in the 
United States. 

You will note from the attached correspondence that there are certain facts 
on espionage in the United States now in the record of the Internal Security 
Subcommittee which do not appear in the report of the Canadian Royal Com- 
mission. In view of the discrepancy between this and the last sentence of 
paragraph 2 of the Canadian reply. I submit to you that it would be in the 
best interest to ask the Canadian Government to reconsider its decision in this 
matter and allow Mr. Gouzenko to be made available to this subcommittee. 
Very sincerely yours, 

William E. Jenneb. 

The Chairman. I want the members of the committee to know that 
I intend to call Mr. Dulles today to see what has been done. 

Senator Hendrickson. Has there been a reply to that letter as yet? 

The Chairman. I have heard nothing. 

Since Mr. Snyder did not appear this morning, we have made the 
record on these other matters, and this committee will now adjourn 
and reconvene next Monday at 2 o'clock in the afternoon. We hope 
at that time this committee will have the information that we have 
requested from the Attorney General. 

(Whereupon, at 11 : 50 a. m., the hearing was recessed until 2 p. m., 
Monday, November 23, 1953.) 



INTEELOCKING SUBVERSION IN GOYEENMENT 

DEPAETMENTS 



MONDAY, NOVEMBER 23, 1953 

United States Senate, 
Subcommittee To Investigate the Administration 
OF the Internal Security Act and Other Internal 

Security Laws of the Committee on the Judiciary, 

Washington^ D. C. 

The subcommittee met at 2 : 15 p. m., pursuant to recess, in tlie Old 
Supreme Court room, the Capitol, Senator John Marshall Butler, 
presiding. 

Present also: Robert Morris, subcommittee counsel; Benjamin 
Mandell, research director. 

Senator Butler. The committee will come to order. 

Mr. Morris, will you please proceed? 

Mr. Morris. Mr. Chairman, in connection with the meeting today, 
this committee has asked the Attorney General to supply information 
on the dissemination of security reports on the following: Harold 
Glasser, Frank Coe, Victor Perlo, and Solomon Adler. 

I am prepared, Mr. Chairman, today, to read a letter from the 
Attorney General, at least from the Attorney General's Office, on the 
dissemination of security reports on Harold Glasser. 

Senator Butler. Will please proceed, Mr. Morris? 

Mr. Morris. We have been promised that the documentary records 
of Mr. Coe, Mr. Adler, and Mr. Perlo will be forthcoming, but they 
are not complete enough for me to report on today, sir. 

This relates to dissemination of the letter of November 8, 1945, the 
report of November 27, 1945, and memorandum of February 1, 1946. 
That is the preface, Mr. Chairman. 

• The letter addressed to General Vaughan by the Director of the Federal 
Bureau of Investigation on November 8, 1945, set forth in the testimony of the 
Attorney General to the Senate Subcommittee on Internal Security on November 
17, 1953, vpas not given any further dissemination by the Federal Bureau of 
Investigation. 

The report of November 27, 1945, by the Federal Bureau of Investigation 
entitled "Summary of Soviet Espionage in the United States," to which the 
Attorney General also referred in the same testimony, was disseminated on 
December 4, 1945, to Brig. Gen. Harry H. Vaughan, then military aide to the 
President ; James F. Byrnes, then Secretary of State ; Tom Clark, then Attorney 
General. On December 7, 1945, copies were also sent to James V. Forrestal, 
then Secretary of the Navy ; Spruille Braden, then Assistant Secretary of State. 
Copies of the report bearing the date of December 12, 1945, were furnished to 
Adm. William D. Leahy, then Chief of Staff to the Commander in Chief of the 
Army and Navy, the White House, on February 20, 1946 ; Lt. Gen. Hoyt S. 
Vandenberg, then Assistant Chief of Staff, G-2, War Department, on February 
26, 1946; Fred M. Vinson, then Secretary of the Treasury, on March 5, 1946; 
Fred Lyon, then Chief, Division of Foreign Activity Correlation, Department of 
State, on March 15, 1946; and to the then Attorney General, Tom Clark, on 
July 24, 1946. 

1169 



1170 INTERLOCKIXG SUBVERSION EST GOVERNMENT 

Copies of the memorandum of the Federal Bureau of Investigation of Febru- 
ary 1, 1946, on Harry Dexter White, were delivered on February 4, 1946, to 
Brigadier General Vaughan for the information of the President, and to Mr. 
Frederick B. Lyon, Division of Controls, Department of State, for the immediate 
attention of Mr. James Byrnes, Secretary of State. A copy of this memorandum 
was sent to Attorney General Clark on February 6, 1946. 

The report of November 27, 1945, to which the Attorney General referred in 
his testimony of November 17, 1953, contains references to Solomon Adler, 
Harold Glasser, and Victor Perlo. Dissemination of this report has been 
separately indicated. 

The data regarding the dissemination of reports mentioned herein were 
furnished to the Attorney General by the Federal Bureau of Investigation by 
memorandum dated August 4, 1948. The FBI has been requested to furnish any 
dissemination additional to the foregoing which may be contained in its records 
and these will be furnished to your committee as soon as received from the 
Bureau. 

Mr. Chairman, that would show that the dissemination of the report 
of November 27, which contained the name of Harold Glasser, was 
furnished to officials in the State Department and the Secretary of the 
Treasury. And you will notice that Mr. Glasser was promoted subse- 
quent to the time of this report, and in addition he was recommended 
by the State Department to accompany Secretary of State Marshall to 
attend the Foreign Ministers Council conference in Moscow in 1947. 

Now, continuing on Harold Glasser, there was a summary dated 
February 21, 1946, which mentioned Glasser, which was furnished by 
letter of February 25, 1946, to General Vaughan. 

There was also a memorandum dated March 5, 1946, containing 
information regarding Glasser, and that was furnished to Admiral 
Leahy, Chief of Staff to the Commander in Chief, on March 7, 1946. 

There was a summary dated February 6, 1946, containing reference 
to Glasser furnished to the Attorney General on February 7, 1946. 

Summary dated February 21, 1946, mentioning Glasser was fur- 
nished to the Attorney General on February 23, 1946. 

Summary dated March 5, 1946, mentioning Glasser was furnished 
to the Attorney General on March 7, 1946. 

Summary dated July 25, 1946, containing information on Glasser 
was furnished to the Attorney General on the same date pursuant to 
a request of the Attorney General by Mr. Clark M. Clifford. Depart- 
mental file shows transmittal of summary to Mr. Clifford on July 25, 
1946. 

Summary dated October 21, 1946, containing information on Glasser 
was made available by letter of December 16, 1946, to Mr. George 
Allen. 

Summary dated October 21, 1946, containing information on Glasser 
was furnished to the Attorney General by memorandum of November 
27, 1946, and to Special Assistant to the Attorney General A. D. 
Vanech by memorandum of December 6, 1946, and two copies to As- 
sistant Attorney General T. V. Quinn by memorandum dated July 23, 
1947. One copy was personally transmitted to Mr. Quinn on August 
7, 1947. 

A summary concerning Glasser's activities was furnished on March 
6, 1947, to the Attorney General. 

A summary dated February 21, 1946, containing reference to Glasser 
was furnished by letter of 'March 4, 1946, to the Secretary of the 
Treasury. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1171 

And, Mr. Chairman, I will endeavor to have the information on 
the other three individuals, namely, Coe, Perlo, and Adler, before this 
subcommittee at the next meeting. 

Senator Buixer. The record will be held open for that purpose. 

Mr. Morris. And I would like to introduce into the record a letter 
which Senator Jenner sent to the Honorable John Foster Dulles on 
November 21, 1953. 

Senator Butler. The letter will be received and made a part of the 
record. 

(The letter referred to is as follows :) 

NOVEMBEE 21, 1953. 
Hon. John Foster Dulles, 

Secretary, Department of State, Washington 25, D. C. 
Dear Mr. Secretary : I am forwarding to you the enclosed authenticated copy 
of a signed statement by Igor Gouzenko which I ask that you transmit to the 
Canadian Government in support of my previously relayed request that Mr. 
Gouzenko be made available to the Internal Security Subcommittee for question- 
ing. 

Very sincerely yours, 

William E. Jenner. 

Mr. Morris. And I would like to put in a photostatic copy of a state- 
ment by Igor Gouzenko, dated November 20, 1953, which has been 
forwarded to the Secretary of State for transmission to the Govern- 
ment of Canada. 

Senator Butler. The statement will be received and made a part of 
the record. 

(The document referred to is as follows :) 

November 20, 1953. 
Statement by Igor Gouzenko 

I read in the official report of the House of Commons Debates of November 17, 
of the Honorable L. B. Pearson regarding my intervievs^ to Mr. Griffin of the 
Chicago Tribune. 

I read, too, the original story of Mr. Griffin in the Chicago Tribune. I must say 
that Mr. Griffin did not misquote me. 

It is clear from the interview that if Senator McCarthy or Senator Jenner 
thought that I might help them, I would be glad to see either of them and that I 
thought a talk with them would be worth while. I still think so. 

I also stressed that such a meeting should take place in Canada for security 
reasons. That was also accurately reported by Mr. Griffin. On no occasion did 
I ever say that I had new information which I did not already give to the 
Canadian Government, and Mr. Griffin did not say that I had. 

I believe a meeting would be useful since I can give advice which, if properly 
put into effect, would have good chances of bringing exposure of present Soviet 
spy rings in the United States in comparatively short time. 

That, of course, would be of great help to Canada, too. That advice I gave 
already to the Canadian Government, during my first days under protection of 
the Canadian Government, but I am most sorry to say that it was ignored. 

Serious and energetic adoption of this advice many years ago might have had 
important results by now. However, it is never too late. 

I can add now that I cannot see the reasons why United States officials could 
not come here and interview me. Anything that might be of help to a friendly 
nation to clean up the common enemy conspiracy must never be obstructed. 

It appears that Mr. Pearson was ill advised and acted in such haste that he 
even neglected to read the original interview upon which he based his not correct 
statement in Parliament. 

(Signed) Igor Gouzej^ko. 

Senator Butler. Is there any further business ? 

Mr. Morris. There is no further business, Mr. Chairman. 



1172 INTERLOCKING SUBVERSION IN GOVERNMENT 

Senator Butler. The subcommittee will stand in adjournment to 
Wednesday of next week at 10 :30, 

(Whereupon, at 2:25 p. m., the hearing was recessed until Wednes- 
day, December 2, 1953, at 10 :30 a. m.) 



INTEELOCKING SUBVERSION IN GOYERNMENT 

DEPARTMENTS 



WEDNESDAY, DECEMBER 2, 1953 

United States Senate, 
Subcommittee To In\'estigate the Administration 
or THE Internal Security Acts, and Other Internal 
Security Laws of The Committee on The Judiciary, 

Washington^ D. C. 

The subcommittee met at 11 : 15 a. m., pursuant to notice, in the Old 
Supreme Court Eoom, the Capitol, Senator William E Jenner (chair- 
man of the subcommittee) presiding. 

Present: Senators Jenner, Watkins, Hendrickson, Welker, Butler 
of Maryland, and Johnston of South Carolina. 

Present also: Robert Morris, subcommittee counsel; Benjamin 
Mandel, research director ; Robert McManus and William E. Lowell ; 
professional staff members. 

The Chairman. The committee will come to order. 

Proceed, Mr. Morris. 

Mr. Morris. Mr. Chairman, since the last session of this committee 
there has been an exchange of notes between the chairman of this 
committee and the Secretary of State. 

On November 25, 1953, the chairman of this committee wrote to 
the Honorable John Foster Dulles, Secretary, Department of State, 
Washington 25 : 

My Deab Mb. Secretary : The offer of the Canadian Government with resi>ect 
to our request to question Igor Gouzenko would be satisfactory if a member 
of the Internal Security Subcommittee of the United States Senate could inter- 
view Mr. Gouzenko under Canadian auspices to determine what he knows about 
espionage in the United States. Once having determined what he knows, the 
subcommittee would then like to address itself to what should be done about 
the evidence or information at this time. 

I feel that the Internal Security Subcommittee could not receive evidence 
vital to the security of the United States, and the United States alone, and 
commit itself not to make it available to Congress, if necessary. 

At the same time, if there is reason to keep the evidence secret the sub- 
committee will use the same discretion it always has in these matters affecting 
security and comity between nations. On behalf of the Internal Security 
Subcommittee, I would like to express the appreciation of the subcommittee 
for your cooperation in these matters. 
Very sincerely yours, 

William E. Jenner, 
Chairman of the Internal Security Suicommittee. 

On November 28, 1953, this office received late in the afternoon — 
it was a Saturday afternoon — we received from the Secretary of State : 

I have your letter of November 25, with reference to the Gouzenko matter. 
I am glad to note that the November 25 resiwuse of the Canadian Government 

1173 



1174 INTERLOCKING SUBVERSION IN GOVERNMENT 

to our note of November 19, 1953, is satisfacl Dry to you if a member of your 
subcommittee can interview Mr. Gouzenko under Canadian auspices to deter- 
mine what he knows about espionage in the United States. 

I understand that in fact the Canadian Government does offer, if Mr. Gouzenko 
agrees, to make arrangements for a confidential meeting under Canadian auspices 
at which a person designated by the United States Government can be present. 

With reference to the publication of Mr. Gouzenko's testimony, I note that 
3'ou suggest that your committee should have the final decision as to whether 
to publicize or keep secret the portions of Mr. Gouzenko's testimony v.'hich your 
subcommittee judges to affect wholly the interests of the United States and 
not those of Canada. 

The Canadian Government as I understand, takes the position that in the 
case of evidence or information 

The Chairman. Right there on that paragraph, that is not exactly 
a correct statement of my request to Mr. Dulles. We did not state 
our position in that "way. All we said is that we would like to talk 
to Mr. Gouzenko at an interview and then we would determine what 
the evidence was. 

That is not exactly a correct analj^sis of our request of November 
25, to Mr. Dulles. 

Mr. MoREis (reading) : 

Once having determined what he knows, the subcommittee would then like 
to address itself to what should be done about the evidence or the information 
at that time. 

The Chairman. That is exactly right. We said after we have the 
evidence that we would sit down and determine what to do. 
Mr. Morris (continuing the reading) : 

The Canadian Government, as I understand, takes the position that in the 
case of evidence or information secured in Canada under the auspices of the 
Canadian Government, that Government must have the right to approve the 
publication. I would not want to ask the Canadian Government to change 
its position in this respect because I believe that the United States would it- 
self want to take a like position under similar circumstances. I feel that the 
United States Government should never admit that any foreign governmental 
agency can overrule or supplant the judgment of the United States Government 
in deciding whether it is to the interest of the United States that publication 
be made of information obtained in the United States through an act of courtesy 
to the United States Government. 

I know that it is your intention to exercise the right to publicize only when 
your subcommittee considers the United States interests alone are concerned, 
but I believe that the Canadian Government is on solid ground in insisting that 
it should be the final judge whether or not its interest was involved. I w^ould 
under similar circumstances take the same position on behalf of the United 
States. I believe you would want me to do so. 

I think we can all assume and certainly this Government assumes that neither 
of our two Governments will use its sovereign discretion arbitrarily to prevent 
a publication which is not affected with its own national interest and which 
would serve the interest of the other. 

Under the circumstances you may feel that it is now in order to proceed 
pursuant to the response of the Canadian Government. 

I am grateful for the expression of the appreciation of your subcommittee 
for any cooperation in this matter. 

The Chairman. I would like our record to show the complete cor- 
respondence on this matter on Igor Gouzenko and I would like to 
show why we wanted to interview Mr. Gouzenko. 

(The correspondence file as of November 23, 1953, appears at p. 
1177.) 

Mr. Morris Mr. Chairman, during the course of the past year, the 
subcommittee had received a security report dated November 1945. 

Throughout that security report there occurred references to infor- 
mation of which Igor Gouzenko had knowledge. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1175 

At the requests of Senators Butler and Welker, the staff made a run- 
down of all references that appeared in our record, which seemed to 
have as their source Mr. I<^or Gouzenko. 

A partial list of those was compiled yesterday and made public, 
almost all of those, however, have previously been made i^ublic during 
the course of our hearings. 

Now, would you like me to read them ? Some of the Senators have 
not heard them. 

Senator "Wei.ker. I think you should read them to the others of the 
committee who just came in today. 

The Chairman. All right, proceed. 

Mr. INIoRRis. These, Senators, are extracts from the 1945 security 
memorandum which the committee has been using from time to time : 

During the period since V-E Day, and particularly since V-J 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 Gouzenko, as set out elsewhere in 
this memorandum, the headquarters of Red Army Intelligence in Moscow issued 
instructions after the use of the atomic bomb in 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 number one 
espionage project for the Soviets. 

Under these instructions it would not be likely that Soviet espionage in this 
country would decrease. According to Gouzenko, 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 espionage 
activity are still connected with the official representation of the Soviets in the 
United States. These three are Gen. Ilia Saraev, military attache, 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 — 

The name of the man that appeared in the memorandum has been 
deleted because on October 28, when he we heard his testimony, he 
denied that he was a Soviet agent and the subcommittee felt it needed 
additional facts and information before it could proceed with the 
investigation. 

The Chairman. That is one of the main reasons we wanted to get 
Mr. Gouzenko, to find out whether or not he would testify about Mr. X 
being a Soviet agent. 

When we had him in executive session he denied he was a Soviet 
agent. 

JMr. Morris. Pursuant to committee policy, if a case is incomplete 
we try to conceal the identity of a person until an open hearing. 

[Continuing:] 

of the OtBce of Scientific Research and Development, who is reportedly working 
for Red Army Intelligence, as well as the group primarily located in New York 
City, headed by Arthur Alexandrovich Adams. 

With regard to espionage in the United States, Igor Gouzenko, former code 
clerk in the office of the Soviet military attach^, Ottawa, Canada, advised a rep- 
resentative of this Bureau and officers of the RCMP, that during World War II 
the head of Red army intelligence activities in the United States was Gen. Uya 
Saraov [Saraev] the military attache. Two of the principal operators of espion- 
age rings under Saraef [Saraev] were I'avel P. Mikhailov, acting Soviet consul 
general in New York City, and Col. A. I. Sorviu [Servin] of the tank department 
of the Soviet Government Purchasing Commission. Gouzenko was positive in his 
identification of these two individuals. 

******* 



1176 INTERLOCKING SUBVERSION IN GOVERNMENT 

Igor Gonzenko, formerly of the Soviet military attache's office, Ottawa, Can- 
ada, advised a representative of this Bureau in the presence of a representative of 
the Royal Canadian Mounted Police that in the spring of 1944 the deputy chief 
of Red Milsky— 

there seems to be a mistake. It reads Eed Milsky — 

and an inspector of high rank in the NKVD made a joint inspection tour of in- 
telligence facilities in the United States, Canada, and Mexico, traveling under 
the guise of diplomatic couriers. 

* * * * * ^ * 

During the United Nations Conference on International Organization, held at 
San Francisco in the spring of 1945, Louise Bransten entertained at her home 
Diraitri 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 Gouzenko, mentioned elsewhere 
in this memorandum, as the head of Red army intelligence espionage activity 
in the New York area. 

Before that information was released we had subpenaed Louise 
Bransten and she testified in open session before this committee. 

When asked about this particular information she invoked the 
privilege under the fifth amendment rather than answer the question. 

The Chairman. That is correct. 

Mr. Morris. Another extract reads : 

Arthur Adams has been very inactive in recent months as far as contacts with 
individuals outside the office of Keynote Recordings, Inc., are concerned. There 
is no indication, however, that he has given up his espionage activity, inasmuch 
as Igor Gouzenko has advised an agent of this Bureau in the presence of repre- 
sentatives of the RCMP that espionage relating to the atomic bomb is the 
No. 1 project of the Soviets at the present time. 

******* 

Ignacy "Witczak, mentioned heretofore, was identified by Igor Gouzenko to an 
agent of this Bureau and to representatives of the Royal Canadian Mounted Po- 
lice as a person who would operate espionage agents in the United States in 
the event diplomatic relations were broken between the Soviet Union and the 
United States; and such agents could no longer be "run" by representatives 
of the Embassy or consulate. 

* * Ht m iti ilf m 

Igor Gouzenko, former code clerk in the office of Col. Nikolai Zabotin, Soviet 
military attache, Ottawa, Canada, when interviewed by a representative of this 
Bureau and officers of the Royal Canadian Mounted Police, stated that he had 
been informed by Lieutenant Kulakov in the office of the Soviet military attach^ 
that the Soviets had an agent in the United States in May 1945 who was an as- 
sistant to the then Secretary of State, Edward R. Stettinius. No further infor- 
mation on this matter was available. 

We wanted to determine at that point in connection with that mate- 
rial whether or not the agent so described was Alger Hiss as the 
security memorandum would indicate. 

The Chairman". Or somebody else, which might lead us to a new 
ring of espionage in Government. 

Mr. Morris (continuing reading) : 

Additional information furnished by Gouzenko enabled this Bureau to iden- 
tify another Soviet agent being operated by Red army intelligence in the United 
States. This individual is X, a field employee of the Office of Scientific Research 
and Development, who is assigned as a scientific consultant to the commander 
in chief of the United States Fleet in the Navy Department. X has been 
determined by this Bureau to be a contact of — 



INTERLOCKING SUBVERSION IN GOVERNMENT 1177 

And there we took out the name of the person we heard on October 
28 in New York executive session. 

X has been determined by this Bureau to be a contact — 

and the name left out there is the name of a Canadian, but even thouo;h 
he was exposed by Canadian authorities we do not feel we should 
divulge it. 

The Chairman. It has been the policy of our committee that if 
Canada wants to divulge it, they can, but we do not operate that way. 

Mr. Morris (continuing reading) : 

of Y in Montreal, Canada, who is one of the espionage agents in Canada being 
operated by Red Army Intelligence. 

Gouzenko's story with regard to X is that he was originally recruited by 
one Frieda in Canada. After X left McGill University in Montreal, Canada, 
where he was employed, and obtained a position with the Office of Scientific 
Research and Development, he was turned over to Soviet representatives in the 
United States. This was effected by Maj. Vassili Rogov, assistant military at- 
tache for air in Canada, who formally transferred him in Washington, D. C, to 
Col A. I. Sorvin [Servin], of the tank department of the Soviet Government Pur- 
chasing Commission, who Gouzenko says is an important head of espionage activ- 
ity in Red army intelligence under Gen. Ilia Saraev, Soviet military attache, 
Washington, D. C. 

X is a native-born American citizen who has specialized in the field of 
zoology. Information developed by the Royal Canadian Mounted Police indi- 
cated that it is possible that X was the individual who furnished information 
concerning the Navy's radio proximity fuse to Dr. Alan Nunn May, the British 
scientist stationed in Canada, who was an agent of the Soviets and who passed 
on a garbled description of the proximity fuse to the Soviets. 

The Chairman. To complete our record, you might show the earlier 
correspondence on this Igor Gouzenko matter. 

Mr. Morris. Shall I put it in the record ? 

The Chairman. Put it in the record so our record will be complete. 

(The correspondence with Secretary Dulles on the Gouzenko mat- 
ter, complete as of November 23, 1953, follows :) 

October 26, 1953. 
Hon. W. Scott McLeod, 

Administrator, Bureau of Security, 
Consular Affairs and Personnel, 

Washington, D. C. 

Dear Mr. McLeod : In the Washington Times-Herald for Monday, October 26, 
1953, there is a statement attributed to Igor Gouzenko to the effect that a talk 
with me or some representative of the Subcommittee on Internal Security "would 
be worthwhile." 

As you, of course, are aware, Mr. Gouzenko is the former cypher clerk of the 
Soviet Embassy in Canada who made extremely important disclosures regard- 
ing the Soviet conspiracy several years ago. Naturally, we are very anxious 
to get in touch with him. 

I would like to delegate our subcommittee counsel, Mr. Robert Morris, to in- 
terview Mr. Gouzenko, together with anyone Mr. Morris deems necessary to 
accompany him. 

Will you be good enough to transmit to the Canadian Government our formal 
request for jiermission to interview Mr. Gouzenko in Canada at your earliest 
possible convenience. 

Thank you for your courtesy and warmest regards. 
Sincerely, 

William E. Jenner, 
Chairman, Internal Security Subcomjnittee. 

32918"— 54— pt. 16 8 



1178 INTERLOCKING SUBVERSION IN GOVERNMENT 

November 5, 1953. 
Mr. Robert ]\Iorris, 

Internal Securitij Suhcommittce, 

United States Senate, Washington 25, D. C. 

Dear Bob : In accordcince with our telephone conversation, I am enclosing 
herewith for your files and records a true copy of our communication with the 
Canadian Government and their reply in connection with your requested inter- 
view with Mr. Igor Gouzenko. 

I am also enclosing photostats of the newspaper articles reporting Gouzenko's 
willingness to talk to congressional committee representatives, and today's AP 
dispatch on the turndown which preceded an official communication to the 
Department. 

With best wishes to you, Bob, and hope we can get together before you leave 
town. 

Sincerely, 

Frances G. Knight, 
Assistant Deputy Administrator, 



Department of State, 

Washington. 
[Transmitted October 29, 1953] 

The Secretary of State presents his compliments to His Excellency the Am- 
bassador of Canada and has the honor to advise that the Department of St'ate 
has been informed by Mr. Robert Morris, counsel for the Senate Internal Security 
Subcommittee, of his desire to interview Mr. Igor Gouzenko in Canada. Mr. 
Morris has further inquired of the Department of State how such an interview 
could be arranged. He has been informed that his request would be submitted 
to the Government of Canada through its Embassy in Washington. 

Mr. Morris desires the Department to mention that he has noted the publicly 
expressed desire of Mr. Gouzenko to talk to the Senate Internal Security Sub- 
committee and that the chairman of this committee. Senator William E. Jenner, 
considers this offer to be valuable. 

It would be appreciated if the Department of State might be informed con- 
cerning the reply the Canadian Government desires to be made to Mr. Morris on 
this matter. 

EUR : BNA : HRaynor : smw SCA EUR 

No. 807 

The Canadian Embassy, 
Washington, D. C, November 5, 1953. 

The Ambassador of Canada presents his compliments to the Secretary of 
State and, in reply to his note of October 29 transmitting a request from Mr. 
Robert Morris, counsel for the Senate Internal Security Subcommittee, to inter- 
view Mr. Igor Gouzenko in Canada, has the honour to state as follows : 

1. Apparently Mr. Morris' wish to interview Mr. Guzenko arises from the fact 
as stated in your note of October 29 that he has "noted the publicly expressed 
desire of Mr. Gouzenko to talk to the Senate Internal Security Subconnnittee." 
This presumably refers to a statement attributed to I\Ir. Gouzenko in an article 
in the Chicago Tribune that he had some further information. 

2. Before this request had been i-eceived from Mr. Morris, Mr. Gouzenko had 
already been questioned concerning his alleged statement since, if there had 
been any additional information, it should have been given to the Canadian 
authorities. Mr. Gouzenko, however, denies that he has any further information 
beyond what was reported in the Royal Commission's report. 

3. Mr. Gouzenko states that he has been misquoted by the Chicago Tribune and 
denies both the alleged remarks concerning additional information and the 
alleged criticism of the handling of the case or the use of the information 
derived from it. 

4. All information connected with this case which could be of value to the 
United States Government was promptly transmitted without delay as soon as 
it was available. 

5. Under these circumstances, it is presumed that the reasons for Mr. IMorris' 
request to interview Mr. Gouzenko have disappeared. 

A. D. P. H. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1179 

November 13, 1953. 
Hon. John Foster Dulles, 

Secretary, Department of State, Washington 2.5, D. C. 

Dear Mr. Secretary: I am enclosing an exchange of correspondence which 
reflects that Mr. Robert Morris, chief counsel for the Internal Security Subcom- 
mittee, acting through your oflice, endeavored to interview Mr. Igor Gouzenko, 
former Soviet code clerk in Ottawa, now believed to be in the custody of the Cana- 
dian Government. Your Department transmitted Mr. Morris' request to the 
Canadian Ambassador who, after notifying his Government, in turn, informed us 
of the Canadian Government's unwillingness to make Mr. Gouzenko available to 
the subcommittee for questioning either in Canada or in the United States. 

You will note from the attached corresiwndence that there are certain facts on 
espionage in the United States now in the record of the Internal Security Sub- 
committee which do not appear in the report of the Canadian Royal Commission. 
In view of the discrepancy between this and the last sentence of paragraph 2 of 
the Canadian reply, I submit to you that it would be in the best interest to ask the 
Canadian Government to reconsider its decision in this matter and allow Mr. 
Gouzenko to be made available to this subcommittee. 
Very sincerely yours, 

William E. Jennek. 



November 19, 1953. 
Hon. William E. Je^tner, 

Chairman, the Subcommittee on Internal Security, 

Cammittee on the Judiciary, United States Senate. 

My Dear Senator Jenner : I refer to your letter of November 13 in which you 
state your belief that it would be in the best interest to ask the Canadian Govern- 
ment to reconsider its decision in regard to the questioning of Mr. Gouzenko. 
The Department is conveying your request to the Canadian Government and I 
will be glad to inform you when a reply is received. 
Sincerely yours, 

John Foster Dulles. 



November 23, 1953. 
Hon. William E. Jenner, 

Chairman, Internal Security Subcommittee, 
United States Senate, Washington, D. G. 

My Dear Senator Jenner: I have your letter* of November 21 enclosing a 
copy of a statement by Igor Gouzenko and asking me to transmit this document 
to the Canadian Government in support of your previously relayed request that 
Mr. Gouzenko be made available to the Internal Security Subcommittee for 
questioning. 

I understand that the Canadian Government reply to the Department's note of 
November 19 transmitting your request is expected soon, probably tomorrow. In 
the light of this and of the report that the Canadian Government is already in- 
formed concerning Mr. Gouzenko's statement of November 20, I shall take the 
liberty of awaiting the receipt of the Canadian Government's reply. 
Sincerely yours, 

John Foster Dulles. 

The Chairman. Let me state for the benefit of the committee, and 
for the public, that our committee is now considering this Igor 
Guzenko matter. We have not arrived at a definite conclusion. 

We will have a session this afternoon to determine what, if any, 
further steps or procedure we should take in this important matter. 

Mr. ]\IoRRis. Is Mr. Raymond Murphy here ? 

Mr. Murphy. Here. 

The Chairman. Will you come forward ? 

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, so help you God ? 

Mr. Murphy. I do. 



1 Chairman Jennwr's letter and the docuument attached thereto appears in the hearing of 
November 23 at p. 1171. 



1180 INTERLOCKING SUBVERSION IN GOVERNMENT 

TESTIMONY OF RAYMOND MUEPHY, POLITICAL ANALYST, 

DEPARTMENT OF STATE 

The Chairman. Will you state your full name for tlie committee ? 

Mr. Murphy. Raymond Murphy. 

Mr. Morris. Where do you reside? 

Mr. Murphy. Washin^jton, D. C. 

Mr. Morris. What is your business or profession ? 

Mr. Murphy. Political analyst, Department of State. 

Mr. Morris. Are you presently with the Department of State? 

Mr. Murphy. I am. 

Mr. Morris. Mr. Chairman and Senators of the committee, in con- 
nection with the appearance of this witness this morning, we have 
called, pursuant to custom, State Department authorities and asked 
that he be allowed to come down for a particular purpose of identify- 
ing certain notes that are being presented to him now. 

Inasmuch as that is the particular purpose of his being cleared 
here, I think if we limit the questioning to that particular thing, we 
will be adhering to our policy and what we agreed with the State 
Department. 

The Chairman. I am sure the committee will cooperate in that 
request. 

Mr. Morris. Mr. Murphy, I have given you two photostats there of 
memoranda. 

Mr. Murphy. Yes, sir. 

Mr. Morris. Do you recognize those? 

. Mr. Murphy. I recognize the one called E. X. DIBXCFST. 

Mr. Morris. You recognize what? 

Mr. Murphy. Just a second. 

Mr. Morris. He has not been shown those until now. 

Mr. Murphy. I recognize them both. 

The Chairman. Identify the one you referred to again. 

Mr. Murphy. The first one is a memorandum of conversation, 
Tuesday, March 20, 1945, Westminster, Md. The name of the in- 
formant is not given. It was Whittaker Chambers. 

Mr. Morris. The second one ? 

Mr. Murphy. The second one was a memorandum of conversation, 
August 28, 1946, again with Whittaker Chambers whose name was 
not mentioned. 

Both have the purport of my conversations with him as I typed 
these up the next day based on my memorandum or notes taken at 
the time. 

Senator Johnson. Those are not sworn statements? 

Mr. Murphy. No. 

Mr. Morris. Mr. McManus, will you get the note for me, please. 

Mr. Chairman, the purpose of introducing these at this time is to 
show that on March 20, 1945, and later in August 28, 1946, Mr. Cham- 
bers had made a record of certain facts that are of interest to this 
committee. 

I would like to point out with particularity the reference here 

The Chairman. Which memorandum are you referring to? 

Mr. Morris. The first one, dated March 20, 1945, which is many 
months before the November 7 and 8 disclosure that Mr. Hoover made 
to General Vaughan of the White House. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1181 

Harry "White of the Treasury was described as a member at large, 
but rather timid. He put on as Assistant Treasurer Glasser, a mem- 
ber of the underground group and an Adler or Odler. 

The two Coe brothers, also party members, were also put on by 
Wliite. 

Now, there are other items in here which are of interest to the 
committee, but inasmuch as at this particular time we are concen- 
trating on the Treasury aspect of this thing, I think we can confine 
the first memorandum to that. 

The Chairman. Those other items are pertaining to other depart- 
ments of the Government ? 

Mr. Morris. That is right. 

I think that covers the Treasury now. 

On August 28, 1946, it reads : 

My informant did not know the Coe who taught at McGill University, but 
he understood that he was a Communist. The other Coe he definitely knew to 
be a Communist. Harry White was reported to be a member of one of the cells, 
not a leader, and his brother-in-law, a dentist in New York, is said to be a fanati- 
cal Communist. 

Then it goes on to talk about Alger Hiss. 

The Chairman. They may go in the record and become a part of 
the record. 

Senator Watkins. The whole thing, or the parts he read? 

The Chairman. The parts he read. 

Mr. Morris. I wanted to call attention only at this particular junc- 
ture in the record to the particular reference to the Treasury. 

The Chairman. Both of the exhibits in full may go in the record 
and become part of the record. 

(The material referred to follows:) 

Memorandum of Conversation, August 28, 1946 

The Communist underground in Washington is believed to have been set up 
sometime in 1933 after the inauguration of President Roosevelt. My informant 
does not know how or when it was set up, but he believes that Harold Ware had a 
prominent part in creating the underground and in enlisting key members. Ware, 
of course, would have acted pursuant to orders from the Central Committee 
of the Communist Party of the United States. 

My informant entered into the Washington picture in the summer of 1985 and 
left it and the party at the end of December 1937. The group was already in 
being and functioning actively. His superior was the Hungarian known as 
J. Peters, the national head of the Communist underground movement. My in- 
formant acted as a courier between Washington and New York. He participated 
in oral discussions in Washington with the group which Peters himself con- 
ducted. They met only the top layer — in other words, leaders of cells of the 
Communist underground in Government circles. 

My informant did not know the Coe who taught at McGill University, but he 
understood that he was a Communist. The other Coe he definitely knew to be a 
Communist. Harry White was reported to be a member of one of the cells, not a 
leader, and his brother-in-law, a dentist in New York, is said to be a fanatical 
Communist. Alger Hiss was never to make converts. His job was to mess up 
policy. The Post of the State Department was a cell member. He thought he 
was of Nat Perlow's group. Post was formerly on the WPA where he measured 
skulls. He was definitely of minor importance in the movement compared 
with Hiss. 

The heads of the various undergroimd groups in Washington who met with 
Peters were the Hisses, Kramer (Krivitzky), Henry Collins, who was either secre- 
tary or treasurer of the group, .John Abt, Lee Pressman, Nat Perlow, and Nat 
Witt. These men met regularly at special meetings. With the exception of 
Donald Hiss, who did not have an organization, they headed parallel organiza- 
tions. But they did not know the personnel of the different organizations. 



1182 INTERLOCKING SUBVERSION IN GOVERNMENT 

Hal Ware was the top man of these organizations. Upon his death in 1036 a 
light brolve out for leadership, but Nat Witt won out. Sometime after 1937 Witt 
is said to have been succeeded by Abt. 

(There were other underground Communist groups operating in Washington, 
but this was the elite policymalving, top-level group.) This group did not 
exchange secret documents from the Government departments, but did give sealed 
reports on the membership of the groups and on policy. It was not a spy ring 
but one far more important and cunning because its members helped to shape 
policy in their departments. Henry Collins, as secretary or treasurer, delivered 
most of the sealed reports to my informant. At that time Henry Collins was 
believed to be working in the Forestry Division of Agriculture. 

Peters was in the Agricultural Department of Hungary under Bela Kun. He 
was in the Austrian Army in World War I. He is a little dark fellow, small feet 
and wavy black hair. 

At the meetings in Washington with this group Peters would give pep talks 
on Communist theory. He would then talk to each leader separately. Peters 
often discussed the morale with my informant. He praised the Hiss boys to my 
informant very highly but was doubtful of Pressman. He had a high" opinion 
of Witt, a slightly less high opinion of Abt, thought Kramer was a nice boy but 
shallow, and had very little use for Perlow. He liked Henry Collins. 

My informant asked Alger Hiss i>ersonally to break with the party in early 
1938, but Hiss refused with tears in his eyes and said he would remain loyal 
to the party. 

After his break with the party, Grace Hutchins telephoned the mother of my 
informant on Long Island one night and said that if he did not return to the 
party by the following Thursday, it was a question of his death. 



Memorandum of Conversation, Tuesday, March 20, 1945, Westminster, Md. 

The person talking was the liaison man for the Communist Party of the United 
States with most of the i>ersons listed below, and he spoke from personal knowl- 
edge, not hearsay. At the time he described the official line of the Communist 
Party was antiadministration, pretty violent, and the antithesis of the popular 
front days of post-1935. It is true that this second phase blended in with the 
first period during which these persons continued cooperation. 

It seems that in 1934 with the establishment of the Agricultural Adjustment 
Administration and the introduction of much reform legislation in Washington, 
the Communist Party decided its influence could be felt more strongly by enlist- 
ing the active support of underground workers not openly jdentilied with the 
party and never previously affiliated with the party but whose background and 
training would make them possible prospects as affiliates under the guise of 
advancing reform legislation. The Hungarian, party name J. Peters, was 
selected l)y the Central Committee to supervise the work from New York. His 
Washington representative and contact man was the informant and he personally 
met and discussed many times various problems with the persons listed below 
except those specifically named as coming under another person's jurisdiction. 
The persons listed below are said to have disclosed much confidential matter and 
to have arranged among themselves a program committing this Government to 
a policy in keeping with the desires of the Communist Party. 

The opportunity presented itself for the formation of an underground group 
with the appointment to a leading position in the Agricultural Adjustment Admin- 
istration in 1934 of one Harold Ware. Ware had worked for years in agricultural 
collectivization projects in Russia. 'He was a son of Ella Reeves Bloor, veteran 
American Communist, by one of her numerous marriages. On being assigned to 
this agency, Ware found a group of very promising, ambitious young men with 
advanced social and political ideas. Among them were Lee Pressman, Alger 
Hiss, Henry Collins, and Charles Kramer (Krivltsky). They all juined the 
Communist Party and became leaders of cells. No cell has over 10 members. 
This was the nucleus of the Communist underground organization in Washington. 
The purpose was for each member to advance as high as possilile in the Govern- 
ment to shape legislation favorable to the program of the Communist Party. The 
top leaders of the miderground were : 

1. Harold Ware. 

2. Lee Pressman. 

3. Alger Hiss. In order of their importance. 



INTERLOCKING SUBVERSION EST GOVERNMENT 1183 

There were various iindergrouncl headquarters in Washington at the time. 
Among these were a violin studio near Dupont Circle run by Helen Ware, another 
place was a school on the outskirts of Washington run by Alice Mendham. 

The informant dealt with these people from 1934 to the end of 1U37 when he 
broke with the party and attempted to persuade various of these contacts to 
break also. He remembers several conversations with Alger Hiss in the early 
part of 1938 during which Hiss was adamant against the plan of breaking with 
the party. He described Hiss as a person with a charming personality, abso- 
lutely sincere in his convictions and motivated by the idea that he was on the 
right track. 

The informant traced the jobs of these men until the end of 1937 and in 
each job they worked together with each other and with the party. Later 
adherents to the party included Donald Hiss, Henry Collins, and a man named 
Post in the State Department. 

In a special category were Noel Field and Lawrence Duggan of the State 
Department. Field was described as a member at large of the party, Duggan 
was not. Neither was connected with the underground and in fact the under- 
ground had orders to refrain from contacting them. The special liaison of 
Field and Duggan was one Hetta Gumperts. She is now in the personnel depart- 
ment of the Todd Shipbuilding Corp. and is married to Paul Massing, a former 
member of the German Communist Party described by General Krivitzky in his 
book. Massing is a ijenologist for the State of Pennsylvania and they have a 
farm near Quakertown, Pa. He is also known as Karl Billinger. Hetta Gum- 
perts is a Viennese Jewish girl. When Field went to the League of Nations in 
1936 he left Duggan in her special care. Gumperts was a Communist Interna- 
tional agent. It is understood that Field and Duggan disclosed any informa- 
tion she wanted to know. 

Harry White of the Treasury was described as a member at large but rather 
timid. He put on as assistants in the Treasury, Glasser, a member of the under- 
ground group, and an Adler or Odler, another party member. The two Coe 
brothers, also party members, were also put on by White. 

Nathan Kaplan, head of the National Research project, was a party member 
as was the other head and his sister Rose Weinstein. 

Lee Pressman was not a party member. He was directed by the party to 
accept the offer of John L. Lewis in 1936 to become general counsel of the CIO. 
Pressman is said to have run arms to Spain during the civil war via Mexico and to 
have worked with General Mark More in that project. More was involved in 
the Rubens Robinson passport case in 1938. 

Nathan Witt of the Labor Board was a party member and also underground. 

When Harold Ware was killed in an auto accident near Baltimore about 1936, 
John Abt succeeded him as leader of the underground in Washington. Abt not 
only succeeded him in the job, he married Ware's widow, Jessica Smith. Abt 
today is associated as counsel of the CIO-PAC with Sidney Hillman and was a 
delegate to the recent Trade Union Conference in London. 

Eleanor Nelson ran a low grade but important Communist group in the Gov- 
ernment. More of a trade-union group but its members had access to Govern- 
ment files which would be made available to the party. Liss [sic] was a member 
of this group. 

Mr. Morris. You say, Mr. Murphy, you made these up ? 

Mr. Murphy. I did, myself. 

Mr. Morris. On the following days, that is on March 21 and August 
29? 

Mr. MuRPHT. Correct. 

The Chairman. What did you do with them after you made them 
up, Mr. Murphy? Have you testified as to what your title and posi- 
tion was at the time ? 

Mr. Murphy. I was a special assistant at the time for the Director 
of the Office of European Affairs. 

The Chairman. We will not go any further into what hai)pened 
after that. 

Thank you. 

Mr. Morris. Thank you, Mr. Murphy. 

Mr. Chairman, the next witness will be Mr. Ullmann. 



1184 INTERLOCKING SUBVERSION EST GOVERNMENT 

The Chairman. Mr. Ullmann, will you come forward, please. 

Mr. FoRER. We object to the photographs and lights, Mr. Chairman.' 
We would like to have a ruling against taking the photographs and 
against the lights. 

The Chairman. It is the policy of this committee that when a wit- 
ness is testifying that he not be photographed and televised. But I 
might state to the photographers and those operating the television 
that if they want to keep the lights and the camera on the committee, 
it will be perfectly agreeable witli this committee. 

Will you be sworn to testify, Mr. Ullmann? 

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. Ullmann. I do. 

The Chairman. Let the record show that Mr. Ullmann is present 
before this committee with his attorney. 

Mr. Forer, will you give your name and address for the record ? 

Mr. Forer. Joseph Forer, 711 14th Street NW., Washington, D. C. 

TESTIMONY OF WILLIAM LUDWIG ULLMANN, HARVEY CEDARS, 
N. J. (ACCOMPANIED BY HIS COUNSEL, JOSEPH FORER) 

The Chairman. Will you state your full name for our record? 
. Mr. Ullmann. William Ludwig Ullmann. 

The Chairman. Where do you reside ? 

Mr. Ullmann. Harvey Cedars, N. J. 

The Chairman. Your business is a builder? 

Mr. Ullmann. Yes. 

The Chairman. Mr. Morris, you may proceed with the questioning 
of Mr. Ullmann. 

Mr. Morris. Mr. Chairman, during the earlier series of hearings of 
this subcommittee on interlocking subversion in the United States 
Government, Mr. Ullmann's name has frequently come up. We had 
dispensed calling him. He had been called some years previously by 
the House Un-ximerican Activities Committee and pretty much the 
testimony relating to him related to Mr. Silvermaster, who did appear 
before this committee. 

However, developments in recent weeks, the testimony of Mr. 
Brownell, the testimony of Mr. Hoover, and other witnesses before 
this committee, have so involved Mr. Ullmann that it has been decided 
that he should be here today to give testimony about the materials 
that have appeared since that time. 

The Chairman. Proceed. 

Mr. Morris. Mr. Ullmann, will you tell us from what university 
you graduated? 

Mr. Ullmann. I graduated from Drury College in Missouri. 

Mr. Morris. In what year ? 

Mr. Ullmann. 1930. 

Then graduate school at Harvard, 1932 — Graduate School of Busi- 
ness Administration. 

Mr. Morris. 1932 ? 

Mr. Ullmann. That is right. 

Mr. Morris. Anything else, JNIr. Ullmann ? Any other degrees ? 

Mr. Ullmann. Xo. 

Mr. MoRias. Any other schooling? 



INTERLOCKING SUBVERSION IN GOVERNAIENT 1185 

Mr. Ullmann. Prep school before college. 

iVIr. Morris. Any subsequent schooling? 

Mr. Ullmann. No. 

Mr. Morris. Have you been a teacher? 

]\Ir. Ullmann. No ; I haven't. 

Senator AVelker. Where were you born? 

Mr. Ullmann. Springfield, Mo. 

Senator Welker. What year? 

Mr. Ullmann. 1908. 

]\Ir. Morris. Wliat positions have you held subsequent to obtain- 
ing a business degree in Harvard in 1932 ? 

^Ir. Ullmann. What positions ? 

Mr. iSIoRRis. Yes. 

Mr. Ullmann. I can't recall all the positions. 

Mr. Morris. Confine it to your Government positions You came to 
Washington in 1935 ? 

Mr. Ullmann. Yes. 

Mr. Morris. You took a position on June 10 with the NRA ? 

Mr. Ullmann. Yes; I did. 

Mr. Morris. How did you get that job ? 

Mr. Ullmann. I applied for a job there with the Consumers Ad- 
visory Committee. 

Mr. Morris. To whom did you apply ? 

Mr. Ullmann. I applied to Mrs. Emily Blair. 

Mr. Morris. Wliat position did Mrs. Emily Blair have at that time? 

Mr. Ullmann. I think she was the head of the Consumers Advisory 
Committee of the NRA. 

Mr. Morris. She is the wife of Harry Blair ? 

Mr. Ullmann. Yes. 

Mr. Morris. How long did you stay with the NRA ? 

Mr. Uluviann. Until after the Supreme Court decision upset it. 

Mr. Morris. Now, on June 6, 1937, you resigned from NRA to go 
with the Resettlement Division ? 

Mr. Ullmann. Yes. 

Mr. Morris. Will you tell us the circumstances of that transfer? 

Mr. Ullmann. I don't recall them very well. I applied there for a 
job with the finance division. 

Mr. Morris. What that an increase, Mr. Ullmann ? 

Mr. Ullmann. I don't recall. 

Mr. Morris. You don't recall the circumstances of your transferring 
from the NRA to the Resettlement Division ? 

Mr Ullmann. No. 

Mr. Morris. Did anyone help you in that transfer? 

Mr. Ullmann. Not that I can remember. 

The Chairman. Wliom did you give as references? 

Mr. Ullmann. I don't remember that. 

Mr. Morris. Now, you got promotions on March 31, 1937, you 
received a promotion in Rural Resettlement, did you not ? 

Mr. Ullmann. I don't recall. 

Mr. Morris. Now, according to our record, Mr. Ullmann, on June 
30, 1937, you received an emergency appointment as the right-hand 
man for the Director of Rural Resettlement. Does that refresh any 
recollection of yours? 



1186 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Ullmann. As I recall, I was assigned to tliat division to work 
on their budgets and financial questions. 

Mr. Morris. Then on March 17, 1939, you resigned to go to Mone- 
tary Research, did you not? 

Mr. Ullmann. Yes. 

Mr. Morris. How did you get into Monetary Research? That is in 
1939, It was the beginning of a phase in your life that was rather 
extensive, Mr, Ullmann, and I am going to ask you with great stress 
that you try to relate the circumstances of your transfer to Monetary 
Research, 

Mr. Ullmann. I heard there was some work to be done there on 
administration of the Anti-Dumping Act and applied for a job. 

Mr. Morris. Excuse me, Mr. Ullmann. 

Mr. Ullmann. I say, I heard that there was some work to be done 
there on the administration of the Anti-Dumping Act under the 
Tariff Act. 

The Chairman, Of 1946 ? 

Mr, Ullmann. I don't remember the date of the act. But it had 
to do with the finding of injury in the case of dumping. 

The Chairman, Part of the Revenue Act? 

Mr, Ullmann, Part of the Tariff Act. 

The Chairman, Yes, 

Mr, Ullmann, And I applied for a position there. 

Mr. Morris. Wlien did you first meet Harry White, Mr. Ullmann? 

Mr. Ullmann. It was sometime in that period of 1938, late 1938, 
I think. 

Mr. Morris. In other words, prior to the time you went to Monetary 
Research ? 

Mr. Ullmann. Sometime in that period. 

Mr. Morris. T^-lien did you meet Frank Coe ? 

Mr. Ullmann. After I got to the Treasury. 

Mr. Morris. After you got to the Treasury ? 

Mr. Ullmann. Yes. 

Mr. Morris. So Coe would not have helped you get into Monetary 
Research ? 

Mr. Ullmann. No ; not very well. 

Mr. Morris. Now, did Harry White help you in any way get into 
Monetary Research? 

Mr. Ullmann. I interviewed AVhite, among others. 

Mr. Morris. He interviewed you, that is? 

Mr. Ullmann. He interviewed me. 

Mr. Morris. Now, did you know Mr. C. B. Baldwin at that time? 

Mr. Ullmann. I knew Mr. Baldwin. 

Mr. Morris. Did he write a letter on January 24, 1939, to Mr. Harry 
Dexter White, Director of Monetary Research of the Treasury De- 
partment in Washington, D. C. ? 

Mr. Ullmann. I don't know, 

Mr. Morris, I have here what purports to be a jihotostat of the 
letter of Mr. C. B, Baldwin, January 24, 1939, to Mr. Harry Dexter 
White : 

Dear Mr. White: This is in regard to your letter of January 11, in which 
you requested information concerning Mr. William L. Ullmann, whose applica- 
tion is under consideration in your Division. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1187 

Mr. Ullniann has been employed in the Finance and Control Division of this 
Administration for over 3 years. In that period he has given entirely satisfac- 
tory service. On several specific occasions I have had an opportunity to observe 
personally the results of Mr. Ullmann's work, and these assignments vpere com- 
petently executed. 

I am of the opinion that INIr. Ullmann has a definite capacity for thoughtful 
and painstaking work in the field of finance. 

Does that square with your recollection at that time ? 

Mr. Ullmann. I just don't recall. 

Senator Welker. May I ask you right now, what was your experi- 
ence in the field of finance ? 

Mr. Ullmann. At the Farm Security Administration. 

Senator Welker. The field of finance in which they said you had 
quite a reputation in that field. What was that experience? 

Mr. Ullmann. It was varied, dealing with budgets and account- 
ing, corporate finance. 

Senator Wlker. Where did he receive that, in private industry or 
in Government? 

Mr. Ullmann. No; my education was in corporate finance and ac- 
counting at the Harvard Graduate School of Business. 

Senator Welker. Thank you. 

The Chairman. Mr. Morris. 

Mr. Morris. Mr. Chairman, in connection with this the witness 
has not identified or recalled that this particular letter was written. 
However, it is a letter from the files and, limited as it is, as evidence, 
may it go into the record ? 

The Chair]man. It may go into the record and become a part of 
the record. 

(The material referred to follows:) 

Department of Agriculture, 
Faku Security Administration, 

Washington, January 24, 1939. 
Mr. H. D. White, 

Director of Monetary Research, 

Treasury Department, Washington, D. C. 
Dear Mr, White: This is in regard to your letter of January 11 in which 
you requested information concerning Mr. William L. Ullmann, whose applica- 
tion is under consideration in your Division. 

Mr. Ullmann has been employed in the Finance and Control Division of this 
Administration for over 3 years. In that period he has given entirely satisfac- 
tory service. On several specific occasions, I have had an opportunity to observe 
personally the results of Mr. Ullmann's work, and these assignments were com- 
petently executed. 

I am of the opinion that Mr. Ullmann has a definite capacity for thoughtful 
and painstaking work in the field of finance. I understand that he has rather 
detailed technical knowledge of several of the problems relating to the general 
field of Government finance. I further understand that he has received graduate 
training in the general field of economics and business research. 

I would assume that the combined factors of training and experience in Mr. 
Ullmann's case would make him a useful worker in your Division. 
Sincerely yours, 

C. B. Baldwin, 
Assistant Administrator. 

Mr. Morris. I have here also from the Government files three items 
which I would like to go into the record at this time. 

One is a United States Treasury personnel recommendation which 
indicates that he was promoted by Frank Coe on June 10, 1941. 

Another, dated November 28, 1941, wherein Harry Dey^^r Wliite 
rates him all strong points except one. 



1188 



INTERLOCKING SUBVERSION IN GOVERNMENT 



Another in which Harry Dexter "Wliite on December 24, 1941, recom- 
mended he be raised in his position. 

The Chairman. Those may go in the record at this point and be- 
come a part of the record. 

(The material referred to follows:) 



UHjf-rtro STATES TREASORV: DEPART' ^"^T 
.;-,;_: WA&mH<STOH, O.C, - " 



'77iS^ 



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ffaturn of fiecoznimniiatian^ - . , _ ^^ 

';^ afaaage, in st&tus -' increase in ^ade 



tiWiior. / Sr.. Bcosiasfia. Aaaiyst.- 
!&!;<r-,' ^ fSOOO per .annuja :. 



yft&600 per anaya. : 



Af***0^»fAT^O»< . _\ 



t OATt or »!f T>t , 



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INTERLOCKING SUBVERSION IN GOVERNMENT 



1189 






yNH-r-l STATES TRCASURY DEPARTMENT 

PERSO/JHEl. KSC:OMMSfft>ATlOff 



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TO DIRECTOR OF PERSONNEL 



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1190 



INTERLOCKING SUBVERSION IN GOVERNMENT 



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SBRVTCE RATING FORM- 



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11, PSOBUCTIVENESS 

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m. QU^ULIFICATIONS SHOWN OH JOB : 

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INTERLOCKING SUBVERSION IN GOVERNMENT 1191 

Senator Hendrickson. What was the date of that promotion? 

Mr. Morris. The promotion was in 1941. 

What were your duties with the Monetary Research Division, Mr. 
Ulhnann ? 

Mr. Ull^iaxx. For the first several years T worked on this question 
of injury under the antidumpino; clause of the Tariff Act. 

Then they became more varied ; I worked on the question of mate- 
rials, then stratep:ic materials, in case of war. 

Mr. Morris. Now, in all, how lon^ were you with the Monetary 
Division of the Treasury Department ^ 

]Mr. Ullmaxx^. Except for the period when I was in the Army, I 
was with them until early 1947. 

Mr. Morris. Now, when were you in the Army, Mr. Ullmann ? 

Mr. Ullmaxx. From October 1942 to, I think, August of 1945. I 
am not sure. 

Mr. Morris. What was the first date ? I missed that. 

Mr. Uloiaxx. October 1942. 

Mr. Morris. From October 1942 until 1945, you were in the Army. 
Will you tell us your circumstances of going into the United States 
Army ? 

Mr. Ullmax^n. I was drafted into the Army, 

Mr. Morris. As a private? 

Mr. Ullmaxx. Yes. I went to officers candidate school. 

Mr. Morris. Did anyone aid you in going to officer candidate school ? 

Mr. Ullmaxx, Not that I know of. I applied before a board and 
went before a board in the regiment. 

Mr. Morris. What assignments did you have in the Army, Mr. 
Ullmann? 

Mr. Ullmaxx. After I got out of officer candidate school, I was 
assigned to the material and services in the headquarters, Air Corps. 

Mr. Morris. Where was that ? 

Mr. Ullmaxx. In Washington. 

Mr. Morris. Wliat other assignments did you have in the Army ? 

Mr. Ullmaxx. That was pretty much all. 

Mr. Morris. That is all ? 

Mr. Ullmaxx. As an officer? 

The Chairmax. You were stationed at the Pentagon? 

Mr. Ullmaxx. Stationed at the Pentagon. 

Mr. Morris. What rank did you achieve? 

Mr. Ullmaxx. Major. 

Mr. Morris. Now, in that position, did you have access to confi- 
dential and classified information? 

Mr. Ullmaxx. I refuse to answer that question because of my privi- 
lege under the fifth amendment, not to be a witness against myself. 

The Chairaiax'. You mean if you truthfully answered that ques- 
tion it might tend to incriminate you ? 

Mr. Ullmaxx. It might. 

Senator Watkixs. It seems to me we are entitled to have from the 
witness what his duties were and what his authority was. I don't 
think that would incriminate him, to state what he was doing and 
what information was available to him. 

The Chairmax. The question on which he invoked the fifth amend- 
ment was: "Did you handle classified information?" 



1192 INTERLOCKING SUBVERSION IN GOVERNMENT 

Now, I think your question is proper if you want to find out what 
his fjeneral duties were, but the question directed to the witness is. Did 
he handle classified documents and information ? And he refused to 
answer under the fifth amendment, and this committee recognizes his 
refusal to answer under the fifth amendment. 

Senator Watkins. What were your duties with respect to restricted 
matters, classified documents, and information? 

Mr. Ullmann. My duties in the Air Corps were to try and organize 
the statistics, for higher officers to expedite the flow of critical parts 
of airplanes or airj)lanes, to aid them in the general production 
program. 

Senator Watkins. That was restricted or classified matter? 

Mr. Ullmann. I refuse to answer that question on the grounds 
stated. 

Senator Watkins. You feel if you admitted that, or gave a truth- 
ful answer rather, that it might incriminate you to say whether or 
not it was classified ? 

Mr. Ullmann. I have said it might. 

Senator Welker. Mr. Chairman ? 

The Chairman. Senator Welker. 

Senator Welker. Is it not a fact you were sent immediately to 
Air Corps Intelligence after your commission ? 

Mr. Ullmann. No ; it isn't. 

Senator Welker. Did you have anything to do whatsoever with 
the Intelligence ? 

Mr. Ullmann. With Air Corps Intelligence ? 

Senator Welker. Yes. 

Mr. Ullmann. Not what was officially known as Air Corps Intel- 
ligence. 

Mr. Morris. Mr. Chairman and Senator Welker, I have here a 
document which is an application for Federal employment in 1946 
in which Mr. Ullmann gives a description of his duties. He says he 
was with Air Force supply, Administration, and general military 
subjects; supply and production planning of Air Force equipment, 
supplies, and accessories. 

Now, in that position did you know when the designated D-day 
was for the invasion of France ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

The Chairman. You won't tell the committee that? All right. 
Let the record show that the witness declines to answer under the 
fifth amendment of the Constitution; that his answer might tend to 
incriminate him. 

Mr. Morris. May that whole document be made a part of the record ? 

The Chairman. It may go into the record and become a part of 
the record. 

(The document referred to follows:) 



INTERLOCKING SUBVERSION IN GOVERNMENT 



1193 




82918°— 54— pt. 16 9 



1194 INTERLOCKING SUBVERSION IN GOVERNMENT 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1195 




1196 



INTERLOCKING SUBVERSION IN GOVERNMENT 













INTERLOCKING SUBVERSION IN GOVERNMENT 



1197 



Mr. Morris. I liave two documents which contain ratings on the 
■work of Mr. Ullmann, elated March 31, 1942. 

Another one, March 31, 1943, which covers the previous period. 

Both ratings have "excellent" from Harry Dexter White. 

The Chairman. They may go into the record and become a part 
of the record. 

(The material referred to follows:) 



CsaiajitM iwnat »,. it 






€S»fl«4aft*««B ^Pi*^ 












o» i«!<M! aKMfw ;: 1, t?aderS«6 t&B.;«iasM»S» wii«fe :!W* «^ ". eases. sifKi 

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ifa&ffiiata ! : 5»trative, ^Kjr^tT^aissfjf, or f3»j»!Kn^ pssgitiijcs; ,..- ; ■■!'■ "'™J,,i^„- '' 



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,.;.„. <t} 'Aecarsiy of Ofi«s«fe«8. , -- _ 

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__ o^mtn. :' - - : ' _ ' 

.1 <5S) CooiiJeraS'reaess. 

......... (17) jBiaatim: 

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„_..., <'S<J)%yB;ea> atnesS;ftir'tio work.. : v ;. 



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1198 



INTERLOCKING STJbVERSION IN GOVERNMENT 



«, ». 0, !>«*. !S&. S»- KS! 






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rNoMMhol ruttis) 



Mr. Morris. Mr. Chairman, Ave have here also a document which 
gives a job description of Mr. UHmann's work while he was in the 
Monetary Division. May that be read at this time ? 

The Chairman. Yes. 

Mr. Mandel. This is from the United States Civil Service Com- 
mission classification sheet dated November 8, 1941, and signed by 
Charles S. Bell, acting administrative assistant to the Secretary, for 
Mr. William Ludwig Ullmann. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1199 

Description of Duties 

Under general administrative suiiervision with wide latitude for independent 
or unreviewed action or decision as senior economic analyst performs unusually 
difficult and responsible professional work involved in performing research, 
making economic analyses and studies, and preparing memoranda and reports 
in one or more of the following fields : 

(1) Economic, financial, and political conditions of foreign countries involving 
analysis of current financial data, country surveys of the domestic and inter- 
national 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 United States foreign investments, 
blocked and other involuntary investments, foreign holdings in the United 
States, foreign assets of the United Kingdom, and other Allied and Axis foreign 
assets. 

(3) Foreign commercial policy involving such matters as dumping. Tariff 
Act and customs problems, countervailing duties, foreign discrimination, export 
control, strategic material, and other United States 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, exchange rates, cap- 
ital movements, international monetary agreements, and foreign monetary sys- 
tems — legislation. 

(6) Banking and domestic finance including United States economic condi- 
tions. Treasury finance, and the national economy, currency and coinage, bank- 
ing problems, monetary and banking legislation, and problems of inflation. 

(7) Stabilization funds including both United States and foreign stabilization 
funds, stabilization operations, and international competitive position. 

More specifically, incumbent performs such duties, as follows : Working inde- 
pendently except for occasional discussions with supervisor on objectives and 
luiusual problems and on the basis of general assignments from supervisor or 
on own initiative without specific assignment, makes difficult and highly impor- 
tant studies consisting of both long-term comprehensive projects and short stud- 
ies dealing with specific questions, problems, or events, such requiring individual 
responsibility for planning the extent of the study, outlining the scope of the 
work, determining methods of approach, discovering sources of material, estab- 
lishing necessary contacts, gathering and selecting material, summarizing, com- 
piling and analyzing data, interpreting data in significant economic, financial 
political terms, and preparing adequate research reiwrts and memoranda which 
contain analyses, conclusions, and recommendations as to the application of 
data ; reviews diplomatic cables and consular reports, current writings of lead- 
ing economists, items of interest in the foreign financial press and studies and 
speeches on economic, financial, monetary, and related problems, and writes for 
the Director memoranda containing abstracts, summaries, or comments on sig- 
nificant points, attends congressional debates and hearings and various confer- 
ences and meetings dealing with incumbent's particular field of work ; analyzes, 
evaluates, criticizes, and comments on various proposals, schemes, or plans of 
an economic or financial nature, prepares answers to letters from Congressmen, 
business firms, and the general public relating to policies and factual data as 
regards the monetary functions of the Treasury Department ; occasionally serves 
as a foreign observer of the Treasury or as a member of a delegation at foreign 
conferences; keeps abreast of latent economic, financial, political, monetary, and 
related developments involving studying cables, consular reports, etc. 

The Chairman. Is that a fair statement of your job description, 
sir? 

Mr. Ullm.\nn. That sounds like I was mighty busy. 

The Chairman. Is that a fair statement of your job description? 

Mr. Ullmann. I don't recognize parts of it. 

The Chairman. You do recognize parts of it ? 

Mr. Ullmann. Yes. 

The Chairman. At that time were you a member of the Com- 
munist Party ? 



1200 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Ullmann. I refuse to answer that question on the same grounds 
as stated before. 

The Chairman. Proceed, Mr. Morris. 

Senator Welker. Mr. Chairman, may I ask a question? 

The Chairman. Senator Welker. 

Senator Welker. I noticed you testified that you had something to 
do with the strategic material in case of war while you were in the 
Monetary Division. 

Could you help the committee by telling us what your activities 
were with respect to the strategic materials in the event of war ? 

Mr. Ullmann. I* don't recall very much. I would make quick sur- 
veys as to copper. I remember one was the flow of high-octane gaso- 
line to Japan before we were in the war because the Treasury had 
the copies of custom manifests and the Treasury was opposed to those 
shipments at that time. 

Senator Welker. Now, at the time you assumed those duties, were 
you a member of the Communist Party ? 

Mr. Ullmann. I refuse to answer that question on the same grounds 
as stated before. 

Senator Welker. At the time you assumed those duties, were you 
engaged in espionage activities against the Government of the United 
States? 

Mr. Ullmann. I refuse to answer that question on the same grounds 
as stated before. 

The Chairman. Proceed, Mr. Morris. 
^ Mr. Morris. Frank Coe was your superior in the Monetary Divi- 
sion, was he not, Mr. Ullmann ? 

Mr. Ullmann. At one time, I think he was. I don't recall. 

Mr. Morris. I notice in this application for Federal employment 
in 1946, you described yourself as an economic analyst, you headed 
up the economic research work on Germany and Eastern European 
countries. 

Did you do that work? 

Mr. IQllmann. That was after the war. 

The Chairman. You attended meetings and wrote recommenda- 
tions on the question of financial policy and administration in Ger- 
many and Austria, prepared recommendations on exchange rates, 
commercial policy, financial and settlement pertaining to countries of 
Eastern Europe. 

Does that refresh your recollection as to your duties? 

Mr. Ullmann. Yes. 

Mr. Morris. It is listed here the name and title of superior was 
Frank C. Coe. 

Mr. Ullmann. What was his title? 

Mr. Morris. He was Director of Monetary Research. 

Mr. Ullmann. Yes. 

Mr. Morris. When did you first meet ]Mr. Coe ? 

Mr. Ullmann. After I came to the Treasury. He was there for 
a brief period. 

Senator Welker. Wliere did you meet him? 

Mr. Ullmann. At the Treasury Department. 

Senator Welker. Never met him at any other place? 

Mr. Ullmann. I understood the question was where did I first meet 
him? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1201 

Senator Welker. Yes. You never met liim at any other social 
event ? 

Mr. Ullmann. As far as I know I never have. 

Mr. Morris. J\lr. Ulhnann, were yon taken out of the Army at the 
request of Frank Coe? 

Mr. Uli.manx. I don't recall. 

Mr. Morris. Do you recall receiving a letter on November 9, 1945, a 
letter dated November 9, 1945, which reads : 

My Dear Mi:. Ullmann : On the reeommen(l;ition of IMr. Frank Coe, Director 
of Monetary Research, you are hereby returned to duty from military furlough 
and in-omoted from P-G, $6,2^0 per annum to grade P-7, $7,175 per annum, effec- 
tive October 15, 1945. 

Mr. Uli.manx. I don't recall the letter. 

Senator Welker. jMay I suggest that the exhibit be shown the wit- 
ness and ask him whether or not it refreshes his memory. 

The Chairman. Will you show the witness the exhibit just referred 
to? 

Does it refresh your memory, ]Mr. Ullmann ? 

Mr. Ullmann. I don't recall. 

Senator Welker. You don't recall a letter telling you that you were 
freed from Army service, going back into the Government ? 

Mr. Ullmann. It was normal formality. I don't recall the letter. 

Senator Welker. It is not a normal formality. There were many 
such soldiers that did not get such a letter. I am inquiring of you 
whether or not you have completely forgotten that very important 
matter? 

INIr. Ullmann. I don't recall this particular letter. 

The Chairman. Mr. Morris. 

Mr. Morris. Mr. Chairman, this letter is signed by Paul E. Kelley, 
administrative assistant to the Secretary, addressed to Mr. William 
L. Ullmann, Economic Analyst, Division of Monetary Research, Wash- 
ington, D. C., dated November 9, 1945. May it go into the record? 

The Chairman. It may go in the record and become a part of the 
record. 

(The material referred to follows :) 

NOVEMBEB 9, 1945. 
Mr. William L. ULL^rAxx, 

Economic Analyst, Division of Monetary Research, 

WasJiington, D. C. 

I\Iy Dear Mr. Ullmanx : On the recommendation of Mr. Frank Coe, Director 
of Monetary Research, you are hereby returned to duty from military furlough 
and promoted from grade P-6, $6,230 i>er annum, to grade P-7, $7,175 per annum, 
effective October 15, 1945. 

P»y direction of the Secretary. 
Very truly yours, 

Paul E. Kelley, 
Administrative Assistant to the Secretary. 

Mr. Morris. You worked under Harold Glasser, did you not, Mr. 
Ullmann ? 

Mr. Ullmann. Yes. 

Mr. Morris. Is that for the period 1946 to 1947? 

Mr. Ullmann. That sounds possible. I just don't remember the 
dates. 

Mr. Morris. The records seems to indicate that you worked under 
Mr. Glasser from April 1, 1946, to March 31, 1947. It indicates also 



1202 INTERLOCKING SUBVERSION IN GOVERNMENT 

that Mr, Glasser rated yoii "E"; that is E for excellent, at the place 
you were working. 

When did you first meet Mr. Glasser, Mr. Ullmann ? 

Mr. IJLiiMANN. I met him when I went to work for the Treasury. 

Mr. Morris. Now, you had not met him previously? 

Mr. Ullmann. As far as I can recall I had not. 

Mr. Morris. Mr. Ullmann, Miss Bentley has testified before this 
committee that she received secret documents from Harry Dexter 
White through you and that these documents were turned over by her 
to Soviet Military Intelligence people. 

Would you tell us whether or not that testimony was true testi- 
mony ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds as stated previously. 

Mr. Morris. Did you ever receive classified material from Harry 
Dexter White to be turned over to the Soviet Military Intelligence? 
. Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

Mr. Morris. Did you ever receive any classified information from 
Frank Coe to be turned over to the Soviet Military Intelligence? 

Mr. Ullmann. I refuse to answer that question on the same 
ground. 

Mr. ]\IoRRis. Did you ever receive any classified information from 
Harold Glasser to be transmitted and was transmitted by you to 
Soviet Intelligence ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

Mr. Morris. Did you ever reproduce any classified Government 
documents in the basement of your home, Mr. Ullmann ? 

Mr. Ullmann. I refuse to answ^er that question on the same 
grounds. 

Mr. Morris. Did you maintain a photographic equipment labora- 
tory in the basement of your home ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

Mr. Morris. Did you have a Graflex camera in your home? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

Mr. Morris. Do you possess one at this time ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

Mr. Morris. Have you ever possessed one ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

The Chairman. You mean, Mr. Ullmann, that that might tend to 
incriminate you to tell this committee whether or not you ever owned 
a Graflex camera ? 

Mr. Ullmann. It might. 

Senator Welker. Did you ever own any other kind of a camera? 

Mr. Ullmann. I refuse to answer that question on the same 
gi'ounds. 

Senator Welker. Did you ever own any enlarger? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Senator Welker. Or developing material or printing material con- 
nected with photography? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1 203 

Mr. Ullmann. I refuse to answer that question on tlie same grounds. 

Senator Watkins. I would like to ask a question. 

The Chairman. Senator Watkins. 

Senator Watkins. Would you care to make any comment on the 
testimony of Miss Bentley with respect to you? 

Mv. Ullmann. I w^ould not. 

Senator Welker. Is it a false or true accusation of Miss Bentley? 

Mr. Ullmann. I refuse to answer that question on the same ground 
as stated previously. 

The Chairman. Proceed. 

Mr. Morris. Have you ever drafted a will, Mr. Ullmann, drafted 
or executed a will? 

Mr. Ullm^\js^n. I started to draft one once. 

Mr. Morris. What happened? 

Mr. Ullmann. I don't recall the final outcome. 

jNIr. Morris. Mr. Ullmann, do you remember in executive session 
I showed you a photostatic copy of what was purported to be the last 
will and testament of William L. Ullmann, residing at 5515 30th 
Street NW.? 

The Chairman. You did reside at 5515 30th Street NW. ? 

Mr. Ullmann. Yes. 

Mr. Morris, Do you recall preparing that draft? 

Mv. Ullmann. I recall working on it, I think. 

Mr. Morris. Was' that prepared by some attorney ? 

JNIr. Ullmann. I can't recall that exactly, but I think some attorney 
was helping me on it. 

Mr. Morris. Who was that attorney? 

Mr. Ullmann. I don't recall. 

Mr. Morris. You don't recall who it was? 

Mr. Ullmann. I don't. 

Senator Welker. Did not you tell us it was an attorney in the Treas- 
ury Department? 

Mr. Ullmann. I said it might have been, and I think perhaps it was, 
but I am not sure of that. 

Senator Welker. Is that the only will you have ever executed in 
your lifetime? 

Mr. Ullmann. Yes. 

Senator Welker. You mean to tell this committee that you have 
forgotten where you executed it, or wdiat attorney helped you in the 
preparation of that document? 

Mr. Ullmann. Yes, I do. 

The Chairman. Do you care again to see the instrument shown you 
in executive session, the draft of your will ? Would you like to look 
it over again to refresh your memory ? 

]\Ir. Ullmann. Well, I can look it over again. 

Senator Hendrickson. Mr. Ullmann, w'ho were the attorneys in 
the Treasury Department with whom you w-ere closely acquainted? 

]\Ir. Ullmann. There were several attorneys in the General Coun- 
sel's ofKce. 

Senator Hendrickson. That does not answer the question. Wlio 
were they? Do you remember them? 

Mr. Ullmann. There was Joe DuBois. 

Senator Hendrickson. DuBois? 

Mr. Ullmann. Yes. I think his name was Josiah. 



1204 INTERLOCKING SXJ^VERSION IN GOVERNMENT 

Senator Hendrickson. Would it be Josiah DuBois that drew this 
will for you ? 

Mr. UiXMANN. I don't think so. 

There was Gil Friedman, 

Senator Hendrickson. Might he have drawn the will for you ? 

Mr. Ullmann. He might have. That is possible. 

An attorney named Locker. He might have helped me on it. 
I just don't recall. 

Senator Hendrickson. Any one of last two names mentioned might 
have been the persons who helped you with the will ; is that correct ? 

Mr. Ullmann. Yes, they might have. 

Senator Hendrickson. Where do they live now? 

Mr. Ullmann. I am not sure. 

Senator Hendrickson. Wliere did they live then, in Washington ? 

]SIr. Ullmann. Yes. 

The Chairman. Will you examine the will and see if it refreshes 
your memory ? 

Mr. Ullmann. This might have been it, or this might be a draft of 
it, an earlier draft. 

Senator Watkins. You mean a copy ? 

Mr. Ullmann. No; it might be an earlier draft. It is not signed 
I noticed. 

Mr. Morris. Will you read paragraph 2 of that will on page 1. 

Mr. Ullmann (reading) : 

I give and bequeath to my sister ancl brotlier-in-law, Frances and D. William 
DeArmand, jointly, my Graflex camera and darkroom equipment. 

Mr. Morris. You did own a Graflex camera and darkroom equip- 
ment ? 

Mr. Ullmann. I refuse to answer that question on the same 
grounds. 

The Chairman. Senator Watkins. 

Senator Watkins. You furnished whatever material was needed 
for the drafting of this will, did you not? 

Mr. Ullmann. For what? 

Senator Watkins. You furnished the material, the facts, the 
list of the properties you had and what you wanted done with it 
to the lawyer who drafted this will ? 

Mr. Ullmann. In general ; yes, sir. 

Senator Watkins. Will you say now you did not furnish the infor- 
mation with respect to this item 2, the Graflex camera ? 

Mr. Ullmann. Excuse me just a minute. 

The Chairman. You may consult your counsel before responding 
to the question. 

Mr. Ullmann. I refuse to answer the question on the grounds pre- 
viously stated. 

Senator Watkins. You do that again because if you gave a truthful 
answer it might tend to incriminate you? 

Mr. Ullmann. It might. 

Mr. Morris. Mr. Ullmann, under the terms of that will, if that was 
a will, executed will, you did appoint Nathan Gregory Silvermaster 
your executor, did you not ? 

]Mr. Ullmann. I don't recall. Under the terms of this document 
here 

ISIr. Morris. Yes. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1205 

Mr. ITllmann. I think that is what it states. 
INIr. Morris. Yes ; it does state that. 
Mr. ULL3IANN. It does state that? 

Mr. Morris. ISIr. Chairman, may the whole document, which has 
been identified by Mr. UHmann, be admitted and go into the record? 
The Chairman. Yes. 
(The material referred to follows:) 

Last Will and Testament 

I, William L. Ullninnn, residing at TmIo 30th Street NW., Washington, D. C, 
lieing over the age of 21 years and being of sound and disposing mind and 
memory, do hereby declare tins to be my last will and testament, hereby revoking 
all former wills by me heretofore made. 

(1) I give and bequeath to my father and mother, jointly, the following 
legacies : 

(c) All money at time of my death that I have on deposit in my checking 
and savings account at the Morris Plan Bank, Washington, D. C. 

(6) All unpaid or accrued salary payments or other moneys owing or 
due to me at the time of my death, or to become due or owing to me at 
any future time from the United States Treasury Department, or any other 
person or tirm. 

(c) All United States Government bonds owned by me at the time of 
my death, including those now being held in safekeeping at the United 
States Treasury Department and at the Federal Reserve Bank of Chicago, 
registered under my War Department Serial No. 0579514. 

(2) I give and bequeath to my sister and brother-in-law, Frances and D. 
William DeArmand, jointly, my Graflex camera and darkroom equipment. 

(3) I give and bequeath to my sister, Mrs. Frances DeArmand, all common 
stock owned by me at the time of my death in the Grandin Coast Lumber Co. 
and Venezuela Petroleum Corp., but if my sister shall die in my lifetime I give 
the same to my father and mother jointly. 

(4) I give, devise, and bequeath to Mr. and INIrs. N. Gregory Silvermaster 
all my interest in the house at 5515 30th Street NW., Washington, D. C, 
including all articles of household or personal iise or adornment in and about 
the house, except such articles or effects which I have specifically disposed 
of herein. 

(5) All the rest, residue and remainder of my estate, real, personal or mixed, 
of whatever kind or character, or wheresoever situated, I give, devise, and 
bequeath to my father and mother jointly. 

(6) I appoint N. Gregory Silvermaster the executor of this, my last will 
and testament, but, if he dies in my lifetime, I appoint his wife, Helen P. Silver- 
master, executrix of this my last will and testament. I hereby excuse my 
executor or his successor from giving any probate or bond or bonds in order 
to qualify as such executor or executrix. I also give to my executor or his 
successor full power and authority to sell and convey any of my estate, real or 
personal, and to that end to execute and deliver good and sufficient deeds of 
conveyance and transfer. I further authorize my executor or his successor to 
pay all succession and inheritance and estate taxes from my estate as an 
administrative expense. 

In witness whereof I have hereunto set my hand and seal this day of 

, 194__. 

[seal.] 

Signed, sealed, published, and declared by William L. X'llmann, the above- 
named testator, as and for his last will and testament, in the presence of us, 
who at his request, and in his presence, and in the presence of each other, have 
hereunto subscribed our names as attesting witnesses this day of 



Residing at 
Residing at 



1206 INTERLOCKING SIJfeVERSION IN GOVERNMENT 

Senator Welker. The document appoints N, Gregory Silvermaster 
as executor of this, his last will and testament, and that in the 
event — 

he dies in my lifetime I appoint his wife, Helen T. Silvermaster, executrix of 
this, my last will and testament. 

Does that refresh your memory, Mr. Ullmann ? 

Mr, Ullmann. No ; not particularly. 

Senator Welker. You want to tell this committee that you don't 
know whom you named as the executor or executrix of the last will 
and testament? 

Mr. Ullmann. I just don't recall this. I say it might have beew. 

Senator Watkins. Did you finally execute the will and make it 
a legal document? 

Mr. Ullmann. I am not sure that I did. 

Senator Watkins. You are not sure you did not, either? 

Mr. Ullmann. No ; I am not sure I didn't, either. 

Senator Watkins. You do not have any memory on that ? 

Mr. Ullmann. I don't have. 

Senator Hendrickson. What happened to the original document ? 

Mr. Ullmann. I just don't recall. 

Senator Hendrickson, Did you destroy it ? 

Mr. Ullmann. No; I don't think I did. 

Senator Hendrickson. Do you have a will prepared today ? 

Mr. Ullmann. I don't think I have one. 

Senator Welker. If this is in existence, the original will, that is 
your final last will and testament, is it? 

Mr. Ullmann. Yes ; it is ; if it was executed I mean. 

Senator Hendrickson. What prompted you to draw this will ? 

Mr. Ullmann. What is the date on this will ? 

Mr. Morris. It is undated. 

Mr. Ullmann. I remember I discussed it at one time when I was 
going to go to Europe on a trip. I was going to fly. 

Senator Welker. What year was that ? 

Mr. Ullmann. Early 194G. 

Senator Johnston. Whom did you discuss it with? 

Mr. Ullmann. I think it was one of these attorneys at the Treasury. 

Mr, Morris, Senator Johnston, I might add that this was taken 
from the Treasury Department files and there seemed to be an indi- 
cation — I don't know why the will of an individual should be in the 
Treasury Department files if it were not in some support of Mr. 
Ullmann's statement that a Treasury Department lawyer had drawn 
it up for him. 

Senator Johnston. You did have an attorney there work on 
the will ? 

Mr. Ullmann. I said I think I did consult one of the attorneys in 
the genera] counsel's office there. 

The Chairman. The will was prepared by this attorney? 

Mr. Ullmann. As far as I remember. 

The Chairman. Is that a common practice that the employees in 
the Treasury Department have their wills drawn on Government time 
and Government expense? 

Mr. Ullmann. I am not even sure it was on Government time and 
Government expense. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1207 

The Chairman. Yon just don't recall much about it, 

Mr. Ullmann. I don't recall too much about it. 

Senator Welker. Do you have any idea why a copy of this last will 
and testament of yours would be in the Treasury Department files? 

Mv. Ullmann. No; I haven't. 

Mr. ISIoRRis. Were you an officer at the Bretton Woods Monetary 
Conference in 1944? 

JSIr. Ullmann. Was I an officer ? 

]\[r. Morris. Yes. 

Mr. Ullmann. I was there. 

The Chairman. You attended ? 

Mr. Ullmann. I attended. 

Mr. Morris. I have here, Mr. Ullmann, a compilation of officers 
of the Conference, members of the delegations, and officers of the 
secretariat, Bretton Woods, N. H., July 1944. 

Mr. Ullmann. I didn't know we were desig:;nated as officers. 

INIr. Morris. You are listed as assistant secretary, Capt. William L. 
Ullmann. That is page 4. Assistant secretary, organization manage- 
ment at the Conference. 

Mr. Ullmann. Yes. 

Mr. Morris. You were a captain in the Air Force at that time, 
were you not ? 

JNIr. Ullmann. Yes. 

Mr. iSIoRRis. How do you account for the fact that you were assist- 
ant secretar}'^ at the Bretton Woods Monetary Conference in 1944? 

JNIr. Ullmann. I was borrowed by the Treasury to go there. 

]Mr. INIoRRis. You were taken out of the Army ? 

Mr. Ullmann. I was borrowed. 

The Chairman. Who borrowed you ? 

Mr. Ullmann. I think it was Mr. White. 

Mr. Morris. Solomon Adler was at that Conference, was he not ? 

Mr. Ullmann. I don't recall he was. 

Mr. Morris. Do you not recall his being brought back from China 
to attend this particular conference? You know Solomon Adler, 
do you not ? 

Mr. Ullmann. Yes; I know him. 

Mr. Morris. What was Solomon Adler's position in the Treasury 
Department ? 

Mr. Ullmann. He was an economist. 

Mr. Morris. What was his title? What was his job? He was 
Treasury attache in China for many years ? 

Mr. Ullmann. Yes. 

Mr. ]\IoRRis. Before he went there can you tell us w^hat work he did 
in the Treasury Department ? 

Mr. Ullmann. As I recall, he worked on monetary and financial 
problems surrounding the Far East. 

ISIr. Morris. Then he went to China as the Treasury attache and 
sta^^ed there until 1949 and 1950, did he not? 

INIr. Ullmann. I don't know the dates. 

Mr. Morris. Did he ever transmit to you any classified material 
to be turned over to Soviet Military Intelligence? 

]\Ir. Ullmann. I refuse to answer that question on the same grounds 
as stated before. 



1208 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Morris. Wlio else was at the Bretton Woods Monetary Confer- 
ence at that time in your particular monetary division ? 

Mr. White was there, was he not? 

Mr. Ullmann. Mr. White was there. 

Mr. Morris. Mr. Coe was there, was he not? 

Mr. Ullmann. I don't recall that he was. 

Mr. Morris. Mr. Coe is listed here as a technical secretary-general. 
That is the third group of officers right under the Secretary-General. 
He is the technical secretary-general. Frank Coe, Assistant Admin- 
istrator, Foreign Economic Administration. 

Mr. UiXMANN. He may have been. 

Mr. Morris. Was that the only assignment that you had while you 
were in the United States Army to attend international conferences? 

Mr. Ullmann. I was borrowed to go to the San Francisco Confer- 
ence in 1945. 

The Chairman. United Nations? 

Mr. Ullmann. United Nations. 

Mr. Morris. In what capacity did you go there ? 

Mr. Ullmann. Assistant to Mr. White. 

Mr. Morris. What was Mr. White's role there? 

Mr. Ullmann. He was supposed to give technical advice on the 
forming of the Economic and Social Council He didn't stay for the 
duration of the Conference. 

Mr. Morris. You did stay for the duration? 

Mr. Ullmann. No, I didn't. 

Mr. Morris. You came back with him ? 

Mr. Ullmann. Yes. 

Mr. Morris. You flew out with him? 

Mr. Ullmann. No ; I think I flew out separately. 

Mr. Morris. But you did come back with him ? 

Mr. Ullmann. Yes, I did. 

Mr. Morris. Do you know a gentleman named Chao-ting Chi ? 

Mr. Ullmann. I don't recall meeting him. 

Mr. Morris. He is listed here as Assistant Secretary-General of 
China at the Bretton Woods Conference. Do you recall meeting him 
at any time? 

Mr. Ullmann. No. 

Mr. Morris. Now, Mr. Chairman, I would like to read some of the 
testimony that Miss Bentley gave before this committee about Mr. 
Ullmann. 

The Chairman. Proceed. 

Mr. Morris. This is Miss Bentley testifying, August 14, 1951 

Senator Welker. First, may I ask a question. Maybe it has been 
asked, Mr. Chairman. 

Have you ever met Elizabeth Bentley ? 

Mr. Ullmann. I refuse to answer that question on the grounds pre- 
viously stated. 

Senator Welker. Or Whittaker Chambers ? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. The question put to Miss Bentley was : 

Did you have a eonfidental Government record come to you from Harry Dexter 
White? 

Miss Bentley. INIany of them, all labeled from Harry because Soviet agents 
like to know who is providing what. 

Question : How many copies of such reports would you receive? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1209 

Miss Bentley. How many copies? 

Question : Would they come in duplicate? 

Miss Bentley. Sometimes it was a carbon copy. Many, many times those 
documents were photographed in the Silvermaster cellar because they could not 
be spared. 

Question : Would you give us a concrete example of your dealings with Harry 
Dexter AVhite? 

Miss Benti.ey. In the way of material? 

Question: Yes, who gave it to you, for instance? 

Miss Bentley. Well, in the early days Lud Ullmann who was then working in 
the Treasury used to bring it out. Sometimes Harry was leery about bringing 
them out himself. Sometimes it would be given to Bill Taylor. 

Question: Who was Bill Taylor? 

Miss Bentley. He was another Communist Party member in the Treasury 
who paid his dues and was a member of the Silvermaster group. 

Question : Was Ullmann in the same category? 

Miss Bentley. Ullmann was in the same category. I knew Ullmann as well as 
Silvermaster. 

Question : W^ould Ullmann give you a report and tell you it was a report from 
Harry White? 

Miss Bentley. Yes ; and he would also type on it "from Harry." 

Question: What would you do? 

Miss Bentley. I would take that hack and when Mr. Golos was alive I would 
give it to him and after he passed on I would give it to the successor agent. 

Would you care to comment in any way on that series of questions 
and answers? 

Mr. Ullmann. No; I ^YOuldn■t. 

Mr. Morris. For what reason ? 

Mr. Ullmann. I refuse to ansvrer that question on the same grounds. 

The Chairman. You were a friend of Harry Dexter IVliite, Mr. 
Ulhnann? 

Mr. Ullmann. I am proud to say I was. 

The Chairman. You drove him home at night usually, did you not ? 

Mr. Ullmann. I wouldn't say usually ; occasionally. 

The Chairman. Many times you took him home ? 

Mr. Ullmann. Yes. 

The Chairman. Did he not live with you and Gregory Silver- 
master? 

Mr. Ullmann. No, he didn't. 

The Chairman. You didn't live in the same house ? 

Mr. Ullmann. Harry White? 

The Chairman. Silvermaster? 

Mr. Ullmann. Silvermaster and I lived together. 

The Chairman. What was the address? 

Mr. Ullmann. Northwest 30th Street. 

The Chairman. The address referee! to in the will? 

Mr. Ullmann. Yes. 

The Chairman. Here in Washington, D. C? 

Mr. Ullmann. Yes. 

Mr. Morris. Mr. Ullmann, did you make a practice of driving 
White home every evening after work no matter how late this re- 
quired you to stay at the office ? 

Mr. Ullmann. No ; I made no practice of it. 

Mr. Morris. You did on frequent occasions? 

Mr. Ullmann. I did maybe on some occasions. I don't recall. 

The Chairman. I believe the impression is left here that you did 
live w^ith Gregory Silvermaster. As a matter of fact, you still live 
with Nathan Gregory Silvermaster? 

32918° — 54— pt. 16- 10 



1210 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Ullmann. Yes, I do. 

Senator Welker. May I ask a question, Mr. Chairman ? 

The Chairman. You may. 

Senator Welker, Was there a cellar in the Silvermaster home ^yhere 
you both lived? 

Mr. Ullmann. I refuse to answer that question on the ground pre- 
viously stated. 

Senator Welker. A basement? 

Mr. Ullmann. I refuse to answer the question on the ground pre- 
viously stated. 

Senator Welker. Would you care to tell us how many bedrooms 
you had in the house ? 

INIr. Ullmann. I refuse to answer that question on the same 
grounds. 

Senator Welker. How many years did you live in this same par- 
ticular house with Silvermaster? 

Mr. Ullmann. Where I live now? 

The Chairman. You don't live there now, do you, sir ? 

Senator Welker. At the address given in your will, how many 
years did you live there with Silvermaster? 

Mr. Ullmann. I don't know, but I think probably 8 or 9. 

Senator Welker. Eight or nine years. You mean to tell this com- 
mittee if you told us whether there were some bedrooms or a basement 
in the house that might tend to incriminate you? 

Mr. Ullmann. It might. 

Senator Welker. Did the house have any windows in it? 

Mr. Ullmann. Yes. 

Senator Welker. That would not tend to incriminate j^ou ? 

Senator Hendrickson. Did the house have a roof on it? 

Mr. Ullmann. Yes, it had. 

Senator Welker. Anybody else live with you there, you and Silver- 
master? 

Mr. Ulumann. Mrs. Silvermaster. 

Senator Welker. She was named the executrix in the event of his 
death in your will. 

Can you tell the committee about any callers that you had? Did 
Mr. Coe call on you ? 

Mr. Ullmann. I refuse to answer that question on the ground pre- 
viously stated. 

Senator Welker. Did Mr. AVliite call on you there? 

Mr. Ullmann. I refuse to answer that question on the same ground. 

Senator Welker. Mr. Adler call on you there? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Senator Welker. Did Harold Glasser call on you there? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Senator Welker. You know it to be a fact, do you not, that all of 
those witnesses have been before this connnittee and have refused to 
answer whether or not they were members of the Communist Party 
under the fifth amendment ? 

The Chairman. Correction there. Mr. Adler has not been before 
this committee. 

Mr. Ullmann; Was Mr. White here? 

Senator Welker. No. not this committee. I was in error on Mr. 
White. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1211 

But you know the others have ai)peared before this committee and, 
like you, declined to answer the question whether or not they were 
members of the Communist Party. 

Mr, Ullmann. I don't know that they have all been here. 

The Chairman. You know that Nathan Gregory Silvermaster has 
been here? 

Mr. Ullmann. Yes. 

Senator Welker. He told you about that; didn't he? 

Mr. Ullmann. Yes. 

Senator Welker. After he returned, in April I think it was. 

Now, would you care to tell the committee whom you talked to about 
the testimony here other than perhaps your counsel? 

Mr. Ullmann. No. 

Senator Welker. You would not care to tell ? 

Mr. Ullmann. No. 

Senator Welker. Why? 

Mr. Ullmann. I refuse to answer that question on the same gi'ounds. 

Senator Welker. You did not talk to Mr. Silvermaster? 

Mr. Ulliviann. Yes; I talked to Mr. Silvermaster. 

Senator Welker. Did he tell you what to expect in the way of ques- 
tions from the committee? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Senator Welker. You were quite well briefed before you came here ; 
were you not? Quite well briefed as to what to say; were you not? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

The Chairman. Mr. Morris, you may proceed. 

Mr. Morris. Mr. Ullmann, when you were in the Pentagon, did you 
frequently — in fact, did you make daily trips back to the Treasury 
Department ? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. You would not tell us whether or not you went from 
the Pentagon over to the Treasury Department while you were an Air 
Force officer? 

Mr. Ullmann. I refuse to answer on the same grounds. 

Mr. Morris. Did you have lunch with Henrietta Klotz in the Wash- 
ington Coffee Shop? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Now Miss Bentley testified, I think before the House 
committee, not before our committee, that — 

Mr. Ullmann was in the Pejitagon with the Air Corps and through his connection 
with General Hilldi'ing's office he liad learned the date, and I remember distinctly 
because with that knowledge he was betting with a friend of his when D-day 
would be, and, of course, he won the bet since he knew it ahead of time. 

Did you learn from General Hilldring's office the date of D-day? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Did you transmit that information to any person you 
knew to be an agent of Soviet military intelligence ? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Did you ever have an assignment at Wright-Patterson 
Field in Dayton, Ohio? 

Mr. Ullmann. I was sent out there frequently. 

Mr. Morris. What was the nature of your assignment out there? 



1212 INTERLOCKING StJBVERSION IN GOVERNMENT 

Mr. Ullm ANN. To find out about how to improve winter flight cloth- 
ing or how much there was of it and so forth. I tried to change the 
high-altitude apparel for pilots at one time. Various questions of 
that type. 

I\Ir. Morris. That information would be helpful to you in jour Air 
Force planning work that you did ? 

Mr. Ullmann. Yes. 

Mr. Morris. When did you first meet ISIr, Silvermaster? 

Mr. Ullmann. After he came to Washington. 

Mr. Morris. After he came to Washington ? 

Mr. Ullmann. Yes. 

Mr. Morris. After you came to Washington, too ? 

Mr. Ullmann. Yes. 

ISIr. Morris. Did you know him before you worked in the Treasury 
Department? 

ISIr. Ullmann. Yes, I knew him. 

]Mr. IMoRRis. When did you first meet him ? 

]Mr. Ullmann. In the summer of 1935. 

Mr. INIoRRis. That was wdien you were with the NRA ? 

Mr. Ullmann. Yes. 

Mr. Morris. Were you at that time a member of the Communist 
Party? 

]\Ir. Ullmann. I refuse to answer that question on the same grounds. 

]Mr. Morris. Were you a member of a cell that operated within the 
NRA? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Do j^ou know a man named Henry Shine? 

JNIr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Do you know Victor Perlo ? 

Mr. Ullmann. I met Victor Perlo much later. 

Mr. Morris. But not at that time. Now you have frequently given 
Mrs. Emily Blair as a reference, I notice in your papers. When did 
you first meet Mrs. Blair ? 

Mr. Ullmann. When I was about 5 or 6 years old. 

Mr. INIoRRis. In otlier words, they are old friends of yours ? 

Mr. Ullmann. Yes. 

Mr. Morris. Do you know Mr. Blair, too? 

]\Ir. Ullmann. Yes. 

Mr. ]\IoRRis. Did you ever take Mr. Blair down to the basement of 
your home? 

Mr. Ullmann. I refuse to answer that question on the same ground 
as stated previously. 

Senator Welker. Mr. Chairman, may I have a question ? 

The Chairman. You may. 

Senator Welker. Mr. Ullmann, in 1946, had you been ordered by an 
official of the Communist Party to strike against the Government of 
the United States 

Mr. Ullmann. To do what? 

Senator Welker. To strike against the Government of the United 
States — would you have carried out that order? 

Mr. Ullmann. If I had been ordered to strike against the Govern- 
ment of the United States? 

Senator Welker. Yes. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1213 

Mr. Ullmann. Would I have carried that order out? I think that 
is an outrafjeous question. 

Senator Welker. It may be outrageous, but you answer it, will 
you, sir? 

Mr. Ullmanx. No, I wouldn't have. 

Senator Welker. You would not have carried it out. Why ? 

Mr. Ullmann. I refuse to answer that question on the ground pre- 
viously stated. 

Senator Welker. Wlien you were in the NRA you took an oath of 
office, a solemn oath of office in which you swore to your God to tell 
the truth, that you would support and defend the Constitution of 
the United States against all enemies, foreign and domestic; that 
you would bear true faith and allegiance to the same; that you would 
take this obligation freely without any mental reservation or pur- 
poses of evasion; that you would well and faithfully discharge the 
duties of the office in which you are about to enter, so help you God. 

You took that oath before Mr. Lyman M. Moore, a notary public 
in the District of Columbia, did j^ou not? 

Mr. Ullmann. I don't recall. 

Senator Welker. Did you tell the truth when you swore to that 
oath? 

Mr. Ullmann. Yes. 

Senator Welker. That you would defend the Constitution of the 
United States against all enemies, foreign and domestic? 

Mr. Ullmann. Yes. 

Senator Welker. At the time you subscribed to that oath were you 
a member of the Communist Party ? 

iVIr Ullmann. I refuse to answer that question on the grounds 

Senator Welker. At the time you subscribed to that oath, Mr. 
Ullmann, were you actively engaged in espionage and sabotage against 
the Government of the United States ? 

Mr. Ullmann. I refuse to answer that question on the grounds pre- 
viously stated. 

Senator Welker. Thank you, Mr. Chairman. 

The Chairman. Senator Hendrickson? 

Senator Hendrickson. INIr. Ullmann, did you at any time, either 
as a member of the armed services or as a civilian employee of the 
Government, ever photograph any classified material? 

Mr. Ullmann. Senator, I refuse to answer that question on the 
same grounds. 

The Chairman. Any further questions? 

Proceed, Mr. Morris. 

Mr. Morris. Mr. Ullmann, you know the Russian language, do you 
not? 

Mr. Ullmann. No ; I don't. 

Mr. Morris. I would like to read from Mr. White's testimony. Does 
Mr. Silvermaster know Russian ? 

Mr. Ullmann. Yes ; he does 

Mr. Morris. Mr. White is explaining why he had Messrs. Silver- 
master and Ullmann at the Bretton Woods Conference. He gave an 
explanation he wanted an economist and a man who knew Russian to 
help in the interpretations of the discussions. He is obviously refer- 
ring to Mr. Silvermaster and not you. 



1214] INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Ullmaxn. I assume so. 

Mr. Morris. You don't know Russian? 

M. Ullmann. I don't. 

Senator Welker. Mr. Chairman, I have a question. 

The Chairman. Senator Welker? 

Senator Welker. Where do you say you live now ? 

Mr. Ullmann. Harvey Cedars, N. J. 

Senator Welker. You live with Nathan Gregory Silvermaster? 

Mr. Ullmann. Yes ; I do. 

Senator Welker. Is Mrs. Silvermaster alive? 

Mr. Ullmann. Yes. 

Senator Welker. She lives there, too? 

Mr. Ullmann. Yes. 

Senator Welker. Are you and Nathan Gregory Silvermaster, or 
either of you separately, to your knowledge, engaged in espionage 
and sabotage against the Government of the United States of 
America as of this date ? 

Mr. Ullmann. I refuse to answer that question on the grounds pre- 
viously stated. 

The Chairman. Mr. Morris? 

Mr. Morris. Mr. Ullmann, I notice that at the time you listed Lauch- 
lin Currie as reference for various positions and various promotions. 
When did you first meet Lauchlin Currie? 

Mr. Ullmann. I don't recall. Probably around 1941, 1942, some- 
time back in there. 

Mr. Morris. Did Mr. Currie ever transmit to you any classified 
material of any kind? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 
^ Mr. Morris. Did you ever transmit any classified material to Mr. 
Currie to be transmitted on to Soviet Intelligence ? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

^Ir. Morris. Did you ever possess the knowledge that the United 
States Government was about to break the Russian code ? 

Mr. Ullmann. I refuse to answer that question on the same grounds. 

Mr. Morris. Now, Mr. Ullmann, how long did you stay in the Treas- 
ury Department ? 

Mr. Ullmann. I think it was until March of 1947. 

Mr. Morris. Is that March 12, 1947? 

Mr. Ullmann. I am not sure of the exact date. 

Mr. Morris. I have here, Mr. Chairman, a letter signed by Ulmann, 
signed March 12, 1947. It is written to Harold Glasser, director of 
the Division of Monetary Research, Treasury Department, Washinir- 
ton,D. C: 

Dear Harold: As you know, I li;ive for some time been considering leaving 
Government service to enter private business. I have now readied a decision 
and, tlierefore, hereby tender my resignation to be effective as of the close of 
business Friday, March 21, 1!)47. 

I need not tell you that I consider my long association with you and other 
members of the Division to have been a most pleasant and profitable one. It 
was Itecause my resignation involved the termination of this association that I 
reached my decision with considerable reluctance. 

I want to take tliis oiiportunity tt) wish you and other members of the Division 
every success. 

Sincerely yours, 

William L. Uli-mann. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1215 

I offer you that, Mr. Ullmann, and ask you if you recognize that 
letter and the signature that appears at the bottom thereof? 

Mr. Ullmann. That looks like my signature, 

Mr. Morris. That squares with your recollection when you left 
Treasury? 

Mr. Ullmann. Sometime around there. 

Mr. Morris. Did you ever hear there was an FBI report dissem- 
inated to the Secretary of the Treasury, the Secretary of State and 
many other officials of the Government, including the President of 
the United States 

Mr. Ullmann. No, I didn't. 

Mr. JNIoRRis. To the effect you were a member of an undercover 
Communist ring? 

Mr. Ullmann. No, I never heard of it. 

Senator Jenner. Mr. White never told you that? 

Mr. Ullmann. No. 

Mr. Morris. Is it your testimony from that time, November 1945, 
the date of this memorandum, up to March 1947 which was a year 
and 5 months later, that you never had an inkling that such a report 
was being disseminated ? That is your testimony ? 

Mr. Ullmann. Yes. 

Mr, Morris. Up to that date did you ever appear before a grand 
jury in connection with this testimony and information ? 

Mr. Ullmann. I didn't. 

Mr. Morris. Is it your testimony that you left the Treasury Depart- 
ment simply because you decided to go into private business ? 

Mr, Ullmann. Yes. 

Mr. Morris. And that you were not under loyalty charges of any 
kind ? 

Mr. Ullmann. I don't know of any. 

Mr. IMoRRis. I mean, did you appear before any loyalty board ? 

Mr. Ull3iann. No. 

Mr. Morris. There was no information about you of any kind, 
that was derogatory security information in the possession of the 
executive branch of the Government about you? 

Mr. Ullmann. That is correct. 

Mr. Morris. Mr. Chairman, may this letter of Mr. Ullmann's to 
Mr. Glasser go into the record ? 

The Chairman. It may go into the record and become a part of the 
record. 

(The document referred to is as follows:) 

Treasury Department, 
Division of Monetary Research, 

Wmliinyton 25, March 12, IdJft. 
Mr. Harold Glasser, 

Director, Division of Monetary Research, 

Treasury Department, Washington, D. C. 
Dear Harold : As you know, I have for some time been considering leaving 
Government service to enter private business. I have now reached a decision 
and, therefore, liereby tender my resignation, to be effective as of the close of 
business Friday, March 21, 1947. 

I need not tell you that I consider my long association with you and other 
members of the Division to have been a most pleasant and profitable one. It 
was because my resignation involved the termination of this association that I 
reached my decision with considerable reluctance. 



1216 INTERLOCKING SiJbVERSION IN GOVERNMENT 

I want to take this opportunity to wisli you and other members of the Division 
every success. 

Sincerely yours, 

W. L. Ullmanx. 

Senator Welkee. Mr. Ullmann, on March 14, 194:7, you signed a 
Treasury Department resignation in which, similar to your letter, 
heretofore produced in evidence, you say : 

T() the HoNORAisLE the Secretary of the Treasury: 

Silt: I hereby tender my resignation fi-om the position of economic analyst 
at a salary of $8,179.50 per annum in the Division of Monetary Research to take 
effect March 21, c. o. b., 1947. Reasons : To enter private industry. 

(Signed) William L. Ullmann. 

Do you recall signing that ? 

Mr. Ullmann. I don't recall it. 

Senator Welker. Then do you recall at the hottom of this resigna- 
tion there are these words: 

Recommended for acceptance without prejudice, sitmed Mary C. Hall, Maixh 
14, 1947, Administrative Assistant to the Director of Monetary Research. 

Who was Mary C.Hall? 

Mr. Ullmanx. She was a woman who handled personnel and ad- 
ministrative matters. 

Senator Welker. Administrative assistant to Mr. White ? 

Mr. Ullmann. Whoever was director at the time. 

Senator Welker. Do you know what the word ''without prejudice" 
means ? 

Mr. Ullmann. I think it is a governmental term. 

Senator Welker. A governmental term meaning you could come 
back at any time in good grace if you wanted to ; is that right i 

Mr. Ullmann. As far as I know, it is. 

Senator Welker. Mr. Chairman, may I ask that this exhibit be 
marked for identihcation and inserted as part of the record. 

The Chairman. It may go in the record and become part of the 
record. 

(The document referred to is as follows:) 

Treasury Department, 

March U, 19^1. 

resignation 

To the honorable the Secretary of the Treasury. 

Sir : I hereby tender my resignation from the position of Economic Analyst, 
at a salary of .$S,179.r)0 per annum, in the Division of Monetary Research to 
take effect March 21, c. o. b., 1947. 
Reasons : To enter i)rivate industry. 
Resi>ectfully, 

(Signed) William L. Ullmann. 

Recommended for acceptance without prejudice. 
March 14, 1947 

]\L\RY C. Hall, 
Administrative Assistant to the Director of Monetary Research. 

Mr. INIoRHis. Mr. Chairman, I have no more questions at this time. 
Senator Hendrickson. I have one I would like to ask. 
The Chairman. Senator Hendrickson? 

Senator Hendrickson. Mr. Ullmann, what is the occuj^ation of Mr. 
Gregory Silvermaster at the present time? 



INTERLOCKING SUBVERSION IN GOVERNMENT 1217 

Mr. Ullmann. He is my business partner. 

Senator Hendrickson. You are in partnership and what do you 
do? 

Mr. Ullmaxn. Build houses. 

Senator Welker. How long have you been so engaged in building 
houses ? 

Mr. Ullmann. Since early in 1947. 

Senator Welker. Have you built quite a number of them? 

Mr. Ullmann. Built some. 

Senator Welker. Some? 

Mr. Ullmann. Yes, sir. 

Senator Welker. How many? 

Mr. Ullmann. I don't know exactly. 

Senator Welker. Would it be 2, 6, or a hundred ? 

Mr. Ullmann. Probably 20 to 30. 

Senator Welker. Will you give me a little description of where 
your home is now that you live in with Mr. Silvermaster, where is 
it located? 

Mr. Ullmann. It is located in Harvey Cedars, N. J., immediately 
outside. 

Senator Welker. Is that near the ocean ? 

Mr. Ullmann. Right on the ocean. 

Senator Welker. Did you ever have any visitors there from any 
foreign country call on you by marine surface vessel ? 

Mr. Ullmann. I refuse to answer that question. 

Senator Welker. That is all. 

The Chairman. Senator Watkins ? 

Senator Watkins. No questions. 

The Chairman. Senator Johnston, any questions? 

Senator Johnston. No. 

The Chairman. No further questions, Mr. Ullmann. You may be 
excused. 

This committee will meet again in executive session at 2 : 30. 

Mr. Morris. Mr. Chairman. I might say that we had asked former 
Secretary of Treasury John Snyder at 9 o'clock this morning if he 
could possibly be here tomorrow for a session because we have more 
records from the Attorney General ; in other words, the records con- 
cerning Harold Glasser, Solomon Adler, Victor Perlo, and Frank Coe. 
They will go into the record tomorrow. We would like to have Mr. 
Snyder there. 

He said he would like very much to appear before the committee but 
tomorrow will be inconvenient and he would suggest some other day 
when he could appear. 

The Chairman. We should have him for an explanation of these 
records, but we will recess at this time and reconvene this afternoon 
in executive session to take up the Igor Gouzenko matter. 

Tomorrow morning, we will have an executive session again at 9 : 30 
and we will have an open session at 11 : 30. 

Senator Johnston. I would like to get into the record that former 
Secretary Snyder told me that he would be glad to come before this 
committee if you gave him sufficient notice. You would not have to 
subpena him. 



1218 INTERLOCKING fTtlBVERSION IN GOVERNMENT 

The Chairman. I called him by telephone and was unable to reach 
him, and sent him a telegram in Toledo. We have been in communi- 
cation with his family here and we called him at 9 o'clock this morn- 
ing and asked him if he could be here, and he said it would be incon- 
venient, but he would, later. 

We have a full schedule for tomorrow and I don't know whether the 
committee will be able to sit Friday. 

Senator Johnston. I will have to go home Friday. 

The Chairman. I don't think we will have a session Friday. 

We will stand in recess at this time. 

(Whereupon, at 1 p. m., Wednesday, December 2, 1953, the hearing 
was recessed until 9: 30 a. m. Thursday, December 3, 1953.) 



INTEELOCKING SUBVERSION IN GOVERNMENT 

DEPARTMENTS 



THURSDAY, DECEMBER 3, 1953 

United States Senate, 
Subcommittee To Investigate the Administration 

OF THE Internal Security Act, and Other Internal 

Security Laws, of the Committee on the Judiciary, 

Washington^ D. C. 

The subcommittee met at 12 o'clock noon, pursuant to notice, in 
the Old Supreme Court room, the Capitol, Senator William E. Jenner 
(chairman of the subcommittee presiding). 

Present : Senators Jenner, Welker, and Henclrickson. 

Present also : Robert Morris, subcommittee counsel ; J. G. Sourwine, 
of Judiciary Committee counsel; Benjamin Mandel, director of re- 
search ; Robert McManus, professional staff member ; and James Wal- 
ter, professional staff member. 

The Chairman. The committee will come to order. 

Mr. Morris. Mr. Chairman, we have received from the Department 
of Justice, in response to our request, information which shows the 
dates in regard to tlie records of V. Frank Coe, Solomon Adler, and 
Victor Perlo, which were disseminated to the various executive 
branches of the agency. 

In connection with Frank Coe, there is a limitation on this if you 
will notice in the letter we have received from the Justice Department. 
It reads : 

The data regarding the dissemination of records mentioned herein were fiir- 
nished to the Attorney General by the Federal Bureau of Investigation by memo- 
randum dated August 4, 1948. The FBI has been requested to furnish any dis- 
semination additional to the foregoing which may be contained in its reports, 
and these will be furnished to your committee as soon as received from the 
Bureau. 

That is August 4, 1948. 

This morning I called the Attorney General's office again asking 
what Communist records were disseminated after that date. They 
told us they are not yet ready ; we will have then in the future. 

On Frank Coe there was a summary dated February 21, 1946, where- 
in Coe was mentioned which was furnished by letter dated Febru- 
ary 25, 1946, to General Vaughan. 

Summary memorandum dated February 21, 1946, including men- 
tion of Coe furnished to Attorney General on February 23, 1946. 

Summary dated February 21, 1946, including information on Coe 
furnished to Attorney General on February 25, 1946. 

Summary dated February 21, 1946, including information on Coe 
furnished to Secretary of the Treasury by letter of March 4, 1946. 

1219 



1220 INTERLOCKING SUBVERSION IN GOVERNMENT 

The Chairman. Our records show who was Attorney General, who 
was Secretary of State, and so forth, at that time ? 

]\Ir. Morris. That is right. 

The Chairman. Does our record also show how long Coe remained 
in Government? When did he leave the Federal Government? 

!Mr. Morris. I have that here. 

The Chairman. I think that should become part of the record at 
this time. 

Mr. Morris. In June 1946, Coe was the Director of Monetary 
Research. At that time he resigned from his job as Director of 
Monetary Research to join the staff of the International Monetary 
Fund. He served as Secretary of tlie International Monetary Fund 
until December 3, 1952, which was the day after he ap])eared before 
the Internal Security Subcommittee and invoked his privilege under 
the fifth amendment in connection with questions regarding his then 
current espionage activities. 

Senator Welker. iSIr. Chairman. 

The Chairman. Senator Welker. 

Senator Welker. That means from February 1946 until the date 
of his resignation in 1952 he remained in the employment of the 
Monetary Research as Director and on the International Monetary 
Fund, notwithstanding the reports furnished to the different agencies 
by the Department of Justice in 1946; is that correct? 

The Chairman. Not only the Department of Justice but to Gen- 
eral Vaughan. 

Senator Welker. By the Department of Justice to the other 
agencies ? 

The Chairman. That is correct. 

Mr. Morris. That is correct. 

The Chairman. The record so shows. 

IMr. IMoRRis. In connection with the investigation conducted by 
this subcommittee last year into activities of American citizens em- 
ployed by the United Nations, it was determined at that time that 
personnel problems affecting American citizens of the United Na- 
tions Avere handled by the State Department, but that personnel 
matters concerning American citizens working in the International 
Monetary Fund were handled by the Treasury Department. 

The Chairman. These reports, as our records show, were sent to 
General Vaughan and General Vaughan has been before this com- 
mittee and testified he transmitted all reports to the President of the 
United States. Also these reports were sent to the Attorne}^ General 
and to the Secretary of the Treasury. 

Mr. INIoRRis. Tliere is one other rundown in our record. Mr. J. Ed- 
gar Hoover testified before this committee and told us of certain 
dates that he disseminated information on Frank Coe, and they will 
be avaihible before tliis session is over. 

The Chairman. We will complete the record when we get the 
information. 

Mv. INIoRRis. I have here a summary iu regard to the position that 
Coe held in Government. 

The Chairman. I think it sliould be read into tlie record. 

Mr. Morris. From June 1934 to September 1934, he was Economic 
Consultant with the Treasury Department. 



ESTTERLOCKENG SUBVERSION IN GOVERNMENT 1221 

June 1986 to September 1936, Principal Economist, Division of 
Research and Statistics, Secretary's Office, Treasury. 

April 1939 to September 1939, Principal Economist, Division of 
Monetary Research, Treasury. 

September 1939 to July 1940, Economic Consultant, Federal Secu- 
rity Agency. 

July 1940 to September 1940, Principal Economist, Advisory Com- 
mission to Council on National Defense. 

September 1940 to February 1942, Assistant Director, Division of 
Monetary Research. 

June 1941 to December 1941, Special Assistant to Ambassador 
Winant, London. 

November 1941 to June 1942, Executive Secretary, Joint War Pro- 
duction Committee, United States and Canada. 

February 1942 to June 1943, Assistant to Executive Director, Board 
of Economic Warfare. 

June 1943 to November 1943, Assistant to Director, Office of Eco- 
nomic Warfare. 

November 1943 to February 1945, Assistant Administrator, For- 
eign Economic Administration. 

February 1945 to June 1946, Director of Monetary Research. 

June 10, 1946 resignation to join staff of International Monetary 
Fund. 

The Chairman. Then he was on the Monetary Fund in February of 
1952 ? 

Mr. Morris. To December 3, 1952. 

Senator Welker. Mr. Chairman. 

The Chairman. Senator Welker. 

Senator Welker. Counsel, may we assume that from February 
1945 to June 1946, up until the time of V. Frank Coe's resignation 
that he received promotions and increases in salary ? 

Mr. Morris. He certainly received an increase in salary and he held 
the position of Secretary of the International Monetary Fund. 

Senator Welker. That would be considered a promotion if he 
received an increase in salary ? 

The Chairman. I think his salary was $20,000. 

Mr. Morris. He was receiving a $20,000 tax-free salary. 

The Chairman. I would consider that a promotion and a raise in 
salary. 

Mr. Morris. We have the case of Solomon Adler. We have received 
from the Department of Justice, in response to our inquiry when the 
Communist record was disseminated to various officials, the following 
rundown on Solomon Adler : 

A summary dated February 21, 1946, containing mention of Adler 
furnished by letter of February 25, 1946, to General Harry H. 
Vaughan, military aide to the President. 

Summary dated February 21, 1946, containing information regard- 
ing Adler furnished to Attorney General on February 23, 1946. 

Summary dated July 25, 1946, containing information on Adler 
furnished to Attorney General by memorandum of July 25, 1946, 
pursuant to request of Attorney General by Clark M. Clifford, special 
counsel to the President. Departmental records show transmittal 
letter of July 25, 1946, from the Attorney General to Mr. Clifford. 
A copy was also furnished to the Attorney General for his information. 



1222 INTERLOCKING SUBVERSION IN GOVERNMENT 

Summary dated October 21, 194G, containin^i^ alleviations concerning 
Adler furnished by memorandum of December 16, 1946, to Mr. George 
Allen, then Presidential adviser. 

Summary dated February 21, 1946, containing information on 
Adler furnished to Attorney General, February 23, 1946. 

Summary dated February 21, 1946, containing information on Adler 
furnished to Attorney General by memorandum of February 25, 1946. 

Summary dated October 21, 1946, containing information on Adler 
was furnished to the Attorney General by memorandum, dated Novem- 
ber 27, 1946. A copy of same was furnished to Mr. A. D. Vanech, 
Special Assistant to the Attorney General, on December 6, 1946, and 
two copies were made available to Assistant Attorney General T. 
Vincent Quinn on July 23, 1947. An additional copy to Mr. Quinn on 
August 7, 1947. 

A summary of basic data from FBI files concerning Adler was for- 
warded to the Attorney General on March 7, 1947. 

Report concerning Adler dated April 9, 1948, furnished to Assistant 
Attorney General Quinn on April 14, 1948. 

Investigative reports furnished on Adler to Assistant Attorney 
General T. V. Quinn on July 22, 1948. 

Summary containing information relating to Adler dated February 
21, 1946, made available to the Secreary of the Treasury by letter 
dated March 4, 1946. 

Summary containing information on Adler dated October 21, 1946, 
was furnished by memorandum of March 6, 1948, to Assistant Attorney 
General Quinn for delivery to Mr. Edward Foley, Treasury DeiDart- 
ment. 

Investigative reports on Adler were furnished to the Civil Service 
Commission on July 22, 1948, for transfer to the Treasury Depart- 
ment under established procedure. As I say, anything that was trans- 
mitted after August 4, 1948, w^ill be furnished at a later date. 

Senator Welker. Mr. Chairman, may I have a question? 

The Chairman. Senator Welker. 

Senator Welker. When did Solomon Adler leave Government 
service ? 

]Mr. INIoRRis. I have that. I have a letter from Solomon Adler, 
dated May 11, 1950. 

The Chairman. What is the date again? 

Mr. Morris. May 11, 1950. It is addressed from 2721 Dumbarton 
Avenue : 

Washington, D. C, May 11, 1950. 
IMr. George H. Willis, 

United States Treasury Department, Washington, D. C. 

Dear George : I hereby submit my resignation from the Treasury Department 
as of the close of business today. I request payment into my aecHtunt at the 
liiggs National Banli of all salary due me and of my unehallenged annual leave, 
and make claim for payment of additional annual leave which was improperly 
diarged to me for the period August 4, 1948, to October 1, 1948. During that 
period I was performing services for the Treasury Department at the Treasury 
Department's direction, and such time may not properly be charged as annual 
leave. 

Any correspondence sb.ould be addressed to me care of Milton Kramer, Esq., 
102,") K Street NW., Washington G, D. C. 

With best personal wi-shes, 
Sincerely yours, 

Solomon Adler. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1223 

The Chairman. Does our record show who Solomon Adler was? 
Was he an American citizen? 

Mr. Morris. I have a curriculum vitae here. 

The Chairman. I think it should be read into the record. 

Mr. Morris. This is a curriculum vitae taken from the files of the 
Treasury Department. It reads as follows: 

Name: Solomon Adler. 

Born : August 6, 1909, Leeds, England. 

1927 : Open scholarship in modern history at New College, Oxford, England. 

1927-30: Undergraduate education at the University of Oxford. 

1930 : Bachelor of arts first-class honors in economics, philosophy, and politics, 

at Oxford University. Awarded the George Wehb Medley senior research 

scholarship in economics (value, $1,500 per annum) by the University of 

Oxford for 2 years. Awarded the Jevons scholarship in political economy of 

University College, London, for 1 year. 
1930-33 : Graduate work at the London School of Economics, 
1932 : Master of Science in Economics, University of London. Awarded the 

Sacher exhibition, New College, Oxford. 
1933 : Awarded the Francis Hutcheson silver medal for distinction in research 

by London School of Economics for master of science thesis on Wicksell's 

Theory of Interest and Its Influence. 
1933 ( January-.Tune) : Research assistant in money and banking to Professor 

Whale, the London School of Economics. 
1933-34: Awarded an Acland fellowship to visit the United States. 

The Chairman. That was in 1934? 
Mr. Morris. Yes. [Keading :] 

1935-36 : Instructor in economics, People's Junior College, Chicago, 111. 

The Chairman. Have we any record on the People's Junior College, 
Chicago, 111.? 

Mr. Morris. The dean was Harold Glasser. 

The Chairman. That is a familiar name. 

Mr. Morris. I think the records show that they resided together 
while they were at People's Junior College. [Reading :] 

1936 (February-December) : Associate economist on the New York staff of the 
National Research Project on Reemployment Opportunities and Recent 
Changes in Industrial Techniques. 

The Chairman. Do not our records show that the National Research 
Project is where many of these folks started ? 

Mr. Morris. Yes. We have a large section in our report showing 
many Communist agents entered the Government by means of the 
National Research Project. I think the committee has characterized 
it as a trapdoor. 

The Chairman. He was at the right place at the right time. 

Senator Welker. May I inquire? 

The Chairman. Senator Welker. 

Senator Welker. Counsel, does the record show from 1934 until 
May 11, 1950, Mr. Solomon Adler was employed by the Government 
of the United States and at no time was an American citizen? 

Mr. Morris. No. He became an American citizen just at the time 
of his employment. I think it was 2 days before or after. 

Senator Welker. That was in 1934? 

Mr. Morris. No. 

Senator Welker. I wanted to get that complete because I was not 
here before. 



1224 INTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Morris. I have some records here that I would like to put into 
the record. Suppose I put these in and then if there are any questions 
unanswered, I will try to answer them. May I do it that way ^ 

The Chairmax. Yes. 

Mr. Morris. I have a letter, dated January 16, 1936, reading as fol- 
lows; and, Mr. Chairman, I might say our procedure has been that 
ordinarily when Ave put these records in, and in this case it came from 
the Treasury Department files, we try to have the witness here. We 
have made every effort to get Mr. Adler here over the past 3 years. 

The Chairman. I think the record should show where he is. 

Mr. Morris. Mr. Adler, to the best of our knowledge, is in England, 

The Chairman. How long has he been there ? 

Mr. Morris. More than 3 years. 

The Chairman. Has he lost his American citizenship? 

Mr. Morris. The American Embassy in London was directed to 
pick up his passport because he was' out of the country for more than 
3 years. I understand he would be subject to denaturalization pro- 
ceedings inasmuch as he is a naturalized citizen. 

We have a record here that Adler was naturalized in 1940. 

The Chairman. In other words, he went into the employment of 
the Government in 1934 and worked in these important positions and 
did not even become a citizen of this country until 1940 ? 

Mr. Morris. But he could have applied before that. 

Senator Welker. He could have but he did not. 

Mr. Morris. It would take some years. 

The Chairman. It does not take 6 years to become a citizen of this 
country. . . 

Mr. Morris. Almost, Mr. Chairman. 

This is a letter dated January 16, 1932, from Irving Kaplan to Mr. 
Solomon Adler, Peoples Institute, Chicago, 111. : 

Dear Mr. Adler: It has been suggested to us that you may be interested in 
work on our project. If after reading the enclosed outline of the study you are 
interested, will you please write us indicating the nature of your interest, the 
function you would be interested in performing on this project, the nature of 
your training and experience, and the terms at which you would be available 
for work in Philadelphia. 
Sincerely yours, 

Irving Kaplan, Associate Director. 

The Chairman. This letter was from Glasser ? 

Mr. Morris. No; this is from Kaplan. 

The Chairman. It may go into the record and become a part of it, 

Mr, Morris, Mr, Kaplan has been identified in our hearings as a 
Communist agent. 

I have another letter, dated November 16, 1936, from 66 Perry Street, 
New York City : 

Dear Mr. Gourvitch : It is with great regret that I have to tender my resigna- 
tion from the National Research project as from November 30. There is no 
need for me to say how much I have enjoyed working here with yon, but the 
position I have been offered in the Treasury is so tempting that it is impossible 
for me to refuse it. 

With best wishes, I am 
Sincerely yours, 

Solomon Adler. 



INTERLOCKING SUBVERSION IN GOVERNMENT 



1225 



The Chairman. It will go into the record and become a part of it. 

Mv. IMoRRis. I have a copy of a telegram from Solomon Adler to 
Irving Kaplan in which he said that he accepted the New York assign- 
ment. It reads as follows : 

Accept New York assignment at salary stated. Ready to begin work Wednes- 
day, February 2G at latest. 

Solomon Adler. 

The Chairman. It may go into the record and become a part of it. 

Senator Welker. What is the date of that ? 

Mr. Morris. February 1936. Chronologically that should have come 
in before. 

I have a letter dated May 29, 1942, addressed to a Mr. W. N. Thomp-- 
son from H. D. White. 

Subject : Promotion of Solomon Adler. 

It is recommended that Mr. Adler be promoted from senior economic analyst, 
P-5, $4,600 per annum, to principal economic analyst, P-6, at $5,600 per annum. 

Mr. Adler's duties and responsibilities have increased since his detail in Chung- 
king, China. He is now acting as the Treasury's economic adviser to the United 
States member of the Chinese Currency Stabilization Board. 

The Chairman. It may go into the record and become a part of the 
record. 

Mr. Morris. I have here an application form filled out by Mr. Adler, 
and the purpose is to indicate Harold Glasser was his employer at the 
People's Junior College in Chicago from February 1935 to February 
1936. 

The Chairman. It may go into the record and become a part of the 
record. 

(The document referred to follows:) 




32918°— 54— pt. 10^ 



-11 



1226 ESTTERLOCKING SUBVERSION IN GOVERNMENT 

Mr. Morris. I have here Mr, Adler's next promotion. This is a let- 
ter from the administrative assistant to the Secretary of the Treasury. 
His name is Charles S. Bell. There is no date on this letter, but it 
reads : 

My Dear Mb. Adlee: On tbe recommendation of Mr. Frank Coe, Director of 
Monetary Research, yon are hereby promoted from grade P-7, $6,500 per an- 
num, to grade P-8, $8,000 per annum, effective May 1, 1945. 
By direction of the Secretary : 
Very truly yours, 

Gharij'^s S. Betx, 
Administrative Assistant to the Secretary. 

The Chairman. It may go into the record and become a part of the 
record. 

Mr. Morris. There is an approval signed by F. Coe, or rather two 
approvals. It was also endorsed by Harold Glasser, Bureau or Divi- 
sion head. 

The Chairman. It may go into the record and become a part of it. 

(The documents referred to follow:) 



INTERLOCKING SUBVERSION IN GOVERNMENT 



1227 



c,ca3 



_-> sf/ei^^^^t^^^g'". 



TO DIRECTO 
























?^iaMr-?;i^- - 




1228 



INTERLOCKING SUBVERSION IN GOVERNMENT 




INTERLOCKING SUBVERSION IN GOVERNMENT 



1229 












58*^'. 








y«»«iBfc«J!j<m. 



•rsBWBag M ^iwgaMgK 




Senator Welker, May I interrogate counsel ? Do you have any in- 
formation with respect to the initials at the bottom of this letter that 
you just supplied, HWD ? 

Mr. Morris. I presume that is Harry White. 

The Chairman. It looks like 4 or 5 sets of initials here. The ex- 
hibit will speak for itself. 

Mr. Morris. I have here an oath executed by ]\Ir. Adler July 18, 
1946, at Washington, D. C, which indicates that Mr. Adler's place of 
employment at that time was the American Embassy in Nanking, 
China. 



1230 rNTTERLOCKING SUBVERSION IN GOVERNMENT 

The Chairman. Wliat was the date? 
Mr. Morris. July 18, 1946. It reads : 

I, Solomon Adler, do hereby swear (or affirm) that I am not engaged in any 
strike against the Government of the United States and that I will not so en- 
gage while an employee of the Government of the United States ; that I am 
not a member of an organization of Government employees that asserts the right 
to strike against the Government of the United States, and that I will not 
while a Government employee become a member of such an organization. 

Solomon Adleb. 

I thought that was an oath saying that he was never a Communist, 
but it is not. 

The Chairman. It may go into the record and become a part of the 
record 

Mr. Morris. Also from the files of Mr. Adler at the Treasury a 
summarization of some of the assignments that he had which would 
indicate the importance of his position while in China. 

Tlie Chairman. March or April 1946 : Treasury proposal to assign 
Adler temporarily to Bangkok opposed by General Marshall on basis 
that Adler's presence in China required in view of financial discus- 
sions in progress. 

July- August 1946: Called to Washington for consultation concern- 
ing pending surplus property and yuan expenditure settlement. 

August 1946 : Accompanied Thomas B. McCabe to China and 
served as financial adviser to his mission in concluding surplus property 
agreement of August 30, 1946. 

July- August 1947: Prepared financial material for and consulted 
with the Wedemeyer Mission in China. 

November 1947 : Secretary Marshall announces that tlie Department 
of State is preparing a program of economic aid to China. 

December 1947: Adler recalled to Washington for consultation, 
arrived December 16. 

December 1947-Februaiy 1948: Consulted with Department of 
State on financial aspects of proposed aid to China, participated in 
NAC working group study of China program, participated in dis- 
cussions with Chinese Technical Mission. Program of aid to China 
submitted to Congress, Februaiy 18, 1948. 

February-August 1948: Participated in further discussions with 
Chinese Technical Mission, participated in preparation oi NAC 
studies pertaining to financial aspects of ECA aid, participated i« 
interagency discussions re United States position on settlement of 
Chinese war accounts. 

August-November 1948 : On annual leave. 

November 1948-February 1949 : Assigned to investigation of long- 
range outlook for United States foreign investment and effect of 
European exchange rates on balance of payments and dollar require- 
ments. 

February 1949-October 1949: On leave of absence; taught at Har- 
vard during spring term, 1949. 

October 1949 to present: Assigned to analysis of possible stages 
in progress toward convertibility of world currencies. 

I want the record to show this summary from 1946 to the present 
time, or rather May 11, 1950, when he left the Government, that de- 
spite the information which was derogatory furnished by the Justice 



INTERLOCKING SUBVERSION IN GOVERNMENT 1231 

Department this man not only remained on the payroll bnt was given 
some of the most important assignments this Government had to 
offer, with increased salary, 

Mr. Morris. We have not been informed by the Justice Department 
as to what has been in these summaries, but we do have the testimony 
of Whittaker Chambers and Elizabeth Bentley and several incidental 
things that have come up in our record. Yesterday the memorandum 
of Whittaker Chambers dated March 1945, mentioned Solomon Adler. 
"WHiittaker Chambers subsequently testified about him. Elizabeth 
Bentley has mentioned Solomon Adler in her open testimony. The 
date of her imparting the details of her espionage to the FBI was 
November 1945. 

Senator Welker. You say Chambers mentioned him and Elizabeth 
Bentley mentioned him. How ? As a Communist ? 

Mr. Morris. As a member of the Communist Party. Elizabeth 
Bentley said she collected his dues through Silvermaster. 

Senator Welker, in answer to your question, I have a letter which 
seems to be undated, again from the Treasury Department files. It is 
addressed to the United States Civil Service Commission, Washington, 
D. C., and reads as follows : 

Gentlemen : In connection with the establishment of my classified status with 
the Civil Service Commission I have been asked to execute a residence form. 
I have no voting residence and I consider the District of Coliunbia my legal 
residence. 

I v\^as naturalized in the United States District Court September .3, 1940, by 
petition No. 12497, and since then I have spent a great proportion of my time 
in Chungking, China, vphere I have been stationed on official business of the 
Treasury Department. 
Very truly yours, 

Solomon Adler. 

Tlie Chairman. It may go into the record and become a part of 
the record. 

Mr. Morris. Since the last reference to Mr. Coe we have here Mr. 
Hoover's testimony about V. Frank Coe. I would like to put it into 
the record. 

The Chairman. You want this to go in in relation t-o the Coe 
testimony ? 

Mr. Morris. Yes. 

The Chairman. You may read that. 

Mr. Morris. Mr. Hoover said: 

If in fact there was any agreement to move White from the Treasury De- 
partment to the International Monetary Fund to aid in the FBI investigation 
and to surround him with persons who were not security risks, then the agi'ee- 
ment would have been broken very early, because Mr. Virginius Frank Coe, a 
close associate of Harry Dexter White, became the Secretary of the Interna- 
tional Monetary Fund in June 1946, which position he held until December 3, 
1952, when he was dismissed after invoking the fifth amendment in an appear- 
ance before this committee last December. It is particularly significant that 
he declined to answer questions regarding his relationship with White. Infor- 
mation on Coe had been furnished to the White House as early as February 
25, 1946 ; to the Attorney General, February 23, 1946, and February 25, 1946 ; 
and to the Treasury Department as early as March 4, 1946. 

From the foregoing, it is clear that the FBI called to the attention of the 
appropriate authorities the facts, as alleged by reliable sources, which were 
substantial in jyointing to a security risk, as they occurred. It is equally clear 
that the FBI did not depart from its traditional position of making no evalua- 
tion, and was not a party to any agreement to keep White in public service. 



1232 



INTERLOCKING SUBVERSION IN GOVERNMENT 



Tliis is in answer to the question about the nature of the summary 
on Coe that was sent on to tlie proper agency. 

I have here a Personnel Division position description in regard to 
Solomon Acller executed on February 21, 1941. The several things 
that are noted here show his immediate superior was H. D. Wliite. 
"The name of the person who assigned your work to you," as it is 
phrased here, "H. D. White" and the name and official title of the 
reviewer of "your work" that is given as H. D. White and V. Frank 
Coe. ]May this go into the record ? 

The Chairman. It will go into the record and become a part of it. 

(The document referred to follows:) 








INTERLOCKING SUBVERSION IN GOVERNMENT 



1233 





1234 



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INTERLOCKING SUBVERSION IN GOVERNMENT 



1235 






1236 



INTERLOCKING SUBVERSION IN GOVERNMENT 




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1237 



form 3201— (April JS'SS) 



SERVICE RATING FORM 

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Mr. Morris. The next name we have is Victor Perlo. We have a 
summary received from the FBI on Perlo. In connection with Perlo, 
he has been identified as a member of a Communist cell by three 
witnesses before this committee: Whittaker Chambers, Nathaniel 
"\Yeyl, and Elizabeth Bentley. 

Perlo is mentioned in the letter of November 8, 1945, to General 
Vaughan to which the Attorney General referred in his testimony 
of November 17, 1953. 

Summary dated February 21, 1916, containing information on Perlo 
was furnished to the Attorney General on February 23, 1946. 

329118"— 54— pt. 16 12 



1238 INTERLOCKING SUBVERSION IN GOVERNMENT i 

Summary dated February 21, 1946, mentioning Perlo was furnished 
to General Vaughan by letter of February 25, 1946. 

Summary dated March 5, 1946, containing information on Perlo 
was furnished to Admiral Leahy on March 7, 1946. 

Summary dated February 6, 1946, containing reference to Perlo 
was furnished to the Attorney General on February 7, 1946. 

Summary dated July 25, 1946, containing information on Perlo 
was furnished to the Attorney General by memorandum dated July 25, 
1946, pursuant to request of the Attorney General by Clark M. Clifford. 
Department files show transmittal letter to Mr. Clifford of July 25, 
1946. 

Summary dated October 21, 1946, containing reference to Perlo 
was furnished by letter dated December 16, 1946, to Mr. George Allen, 
then Presidential adviser. 

Summary dated October 21, 1946, containing information regard- 
ing Perlo was furnished to the Attorney General by memorandum 
of November 27, 1946, and to special assistant to the Attorney General 
A. D. Vanech by memorandum dated December 6, 1946. 

Summary of iDasic data regarding Perlo was furnished to the Attor- 
ney General by memorandum of March 7, 1947. 

Summary dated February 21, 1946, containing information regard- 
ing Perlo was furnished to the Secretary of the Treasury by letter 
dated March 4, 1946. 

Memorandum dated September 6, 1946, concerning Perlo was per- 
sonally delivered on September 12, 1946, to Mr. Lawson Moyer, Per- 
sonnel Investigation Section, Treasury Department. 

The Chairman. Does our record show when Mr. Perlo first went 
with the Government? 

Mr. Morris. Yes. 

September 13, 1933, he was special assistant, National Recovery 
Administration, $2,300. 

June 5, 1935, assistant statistician. Home Owners' Loan Corpora- 
tion, $2,600. 

September 18, 1939, expert, Office of the Secretary of Commerce, 
$4,000. 

November 1, 1940, principal economic analyst. Council of National 
Defense Advisory Committee, $5,600. 

December 11, 1942, head economist. Office of Price Administration, 
$6,500. 

February 17, 1943, head financial economist. Office of Production, 
Vice Chairman, War Production Board, $6,500. 

October 18, 1944, economist. Office of Director, Bureau of Planning 
and Statistics, War Production Board, $6,500. 

May 1, 1945, economist. War Production Board, Office, Bureau of 
Program and Statistics, War Production Board, $6,750. 

December 17, 1945, economic analyst, Division of Monetary Re- 
search, Treasury Department, $7,437.50. 

March 27, 1947, resignation as economic analyst, $8,778, to accept 
position with Intergovernmental Committee on Refugees. 

This was an international organization. 

The Chairman. Again this man remained in Government from 
1933 to 1947 in face of these various reports and summaries forwarded 
to the executive branch of government. He continued to remain in 



INTERLOCKING SUBVERSION IN GOVERNMENT 1239 

government, received promotions and an increase in salary. Am I 
correct ? 

JNIr. ISIoRKis. That is ri^^ht. 

There is one other thinij in connection with that data. The cover- 
inoj letter from the Attorney General's Office mentions that the report 
of November 27, 1945, which the Attorney General referred to in his 
testimony of November 17, 1953, contains references to Solomon Adler, 
Harold Glasser, and Victor Perlo. So that will be an additional list- 
ino- in the data of those three people. 

In connection with the Harold Glasser exchange with a Mr. H. L. 
Lurie, which was inti'oduced into the record about 10 days ago, I 
called Mr. Lnrie to ask about the advisability and need for his testi- 
mony in connection with those letters. He has written the following 
letter which I would like to read to you at this time : 

December 2, 1953. 
Mr. Robert Morris, 

Senate Office Building, Washington, D. C. 

Dear Mr. Morris : You telephoned to me last night asking for a statement 
from me on the relationship of our organization to Mr. Harold Glasser. 

In response to that request, I am enclosing a recent statement made by our 
president, Mr. Julian Freeman, of Indianapolis, at the time of our general as- 
sembly which was being held in Cleveland. The information given in that state- 
ment corresponds with my own knowledge of the fact. 

The only information I can add that would seeni to he relevant is as follows : 
On December 18, 1947, we addressed a letter to Mr. John W. Snyder, then Secre- 
tary of the Treasury, and to Dean Acheson, at that time in private law practice, 
asking for reference on Mr. Glasser who had applied to us for the position of 
research economist. I am enclosing a copy of that letter. 

Mr. Acheson replied under date of December 24, 1947, and Mr. Snyder replied 
under date of December 26, 1947. 

On August 3, 1948, following the charges made about Mr. Glasser which had 
not previously come to our attention, I wrote again to Secretary of the Treasury. 
A copy of my letter is enclosed. Mr. Snyder replied to this letter on August 10, 
1948. 

t'opies of letters I received from Mr. Snyder and from Mr. Acheson have been 
published in the hearings of your committee. Since replies to letters of reference 
are requested on a confidential basis, our organization has not released these 
replies but they have been made available to your committee perhaps from 
the files of the Department of the Treasury or from other sources. 

If there is any further information whicli you would like to have, please let 
me know. 

Yours truly, 

H. L. Lx'RiE, Executive Director. 

The Chairman. Inasmuch as Mr. Lurie has set out here all the in- 
formation that we needed for our committee to complete our files, I 
see no need to call Mr. Lurie as a witness before this committee. I 
think the committee should write Mr. Lurie and thank him for his 
cooperation in this matter. 

Mr. Morris. He has adverted in those letters to a release given out 
by his organization of November 20, 1953. It reads : 

Statement by Julian Freeman, President, Council of Jewish Federation and 

Welfare Fitnd 

I have been asked for information about the relationship of Harold Glasser 
and Harry Dexter White to the C. .1. F. W. F. These are the facts : 

In 1947, with the continuing increase in the volume of philanthropic aid pro- 
vided by American Jewish philanthropists for Europe and Israel, it was felt that 
an independent report and analytical service on the work of Jewish philanthropic 
agencies operating in these areas should be set up to aid in achieving maximum 



1240 INTERLOCKING SUBVERSION IN GOVERNMENT 

effectiveness of programs. Some initial exploratory studies were made for the 
council by Dr. Mordecai Ezekiel. 

Accordingly, it was felt desirable to organize a larger supervisory committee 
of technical experts composed of economists and oflScials of the national agen- 
cies involved in these programs and some professional community executives 
to survey the entire situation and to recommend to us the types of studies which 
would be most helpful in providing the needed information. 

Dr. Isador Lubin, former head of the Bureau of Labor Statistics and later 
with the United Nations, consented to serve as chairman on this group of ad- 
visers. Other persons who served at various times with the committee include: 
Dr. Moses Abramovitz, of the National Bureau of Economic Research. 
Dr. Salo Baron, professor of history at Columbia University. 
Dr. Louis Dublin, at that time a vice president of the Metropolitan Life In- 
surance Co., and now retired. 
Oscar Gass. economic consultant. 

Samuel A. Goldsmith, executive director of the Jewish Federation of Chicago. 
Dr. William Haber, professor of economics at the University of Michigan. 
A. D. J. Kaplan, economist with the Brookings Institution. 

Henry Montor, who was then executive vice chairman of the United Jewish 
Appeal and is now professional head of the American Financial and Develop- 
ment Corporation for Israel. 
Robert Nathan, economic consultant. 

Dr. Nathan Reich, professor of economics at Hunter College. 
Dr. Martin Rosenbluth, at that time a fiuauciel adviser to the Jewish Agency 

for Palestine. 
Isadore Sobeloff, executive director of the Jewish Welfare Federation of Detroit. 
Harry Greenstein, executive director of the Associated Jewish Charities of Bal- 
timore and formerly adviser on Jewish affairs to the United States military 
government in Germany. 
John Slavpson, executive director of the American Jewish Committee. 
Moses Leavitt, executive director of the Joint Distribution Committee. 

Harry Dexter White worked under this committee to outline the specific 
types of additional studies that would be most appropriate and helpful to the 
projected Institute on Overseas Studies. He served on a part-time basis for 
these projects alone from August 15, 1947, to early in October 1947. At that 
time he suffered a heart attack which invalided him for a period of 6 months, 
which made it impossible for him to complete the assignment. The council 
then turned to the advisory committee for continuing help in planning and set- 
ting up the Institute on Overseas Studies. For this assignment Mr. Harold 
Glasser was chosen from a group of economists submitted for the Technical 
Advisory Committee. We cleared his references with Mr. John W. Snyder, 
the then Secretary of the Treasury ; Dean Acheson, then out of Government 
service, and others. He was highly recommended to us as a qualified economist 
and able research worker. Mr. White did not suggest Mr. Glasser for the post, 
but in response to the letters sent out on behalf of the committee indicated that 
Mr. Glasser was a qualified economist. He went to work for the council on 
January 1, 1948. 

When Miss Elizabeth Bentley testified before a congressional committee, 
about 6 months later we wrote to Mr. Snyder expressing our qualms at these 
charges, and asked for an additional statement on Mr. Glasser. Mr. Snyder 
replied, reaflirniing his original endorsement. Mr. Glasser was carrying out his 
assignment with great ability and was producing successful results. 

In April of this year Mr. Glasser testified before the Jenner committee. To 
our knowledge this is the first time that Mr. Glasser was called to testify before 
a congressional committee of this nature. Because of this publicity, he felt 
that his continuing employment might be embarrassing to the council and he, 
therefore, tendered his resignation. The responsible officers and executive com- 
mittee of the council considered this request at several meetings. Following 
full consideration it was decided in June 1953 to accept Mr. Glasser's resigna- 
tion, effective as of September 15. This was later confirmed by the council's 
board of directors. 

In his work with the council, Mr. Glasser compiled an exceptionally fine 
record as Director of the Overseas Institute. His objective and impartial studies 
have been helpful to the agencies concerned in analyzing the role of foreign 
exchange in Israel's economy, development of agriculture, vocational training, 
and other elements in his constructive solution of refugee problems in Europe 
and Israel. 



INTERLOCKING SUBVERSION IN GOVERNMENT 



1241 



The Chairman. That may go into the record and become a part 
of the record. 

Mr. INIoRRis. I have no other business at this time. 

The Chairman. If there is no further business to come before the 
committee, we will adjourn. Senator Hendrickson ? Senator Welker ? 
If not, we will close. 

Mr. INIoRRis. I have a few more files concerning Mr. Adler that 
I would like to go into the record. 

The Chairman. You may put them into the record and they will 
become a part of the record. 

(The documents referred to follow:) 



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The Chairman. We will stand adjourned if there is no further 
business. 

(Whereupon, at 12 : 50 p. m., the committee was recessed, subject 
to call.) 



INTERLOCKING SUBVERSION IN GOVERNMENT 

DEPARTMENTS 



WEDNESDAY, DECEMBER 16, 1953 

United States Senate, 
Subcommittee To Investigate the Ad:\iinistration of the 
Internal Security Act, and Other Internal Security 
Laws, of the Committee on the Judiciary, 

Washington^ D. C. 

The subcommittee met at 11 a. m., pursuant to call, in room 457, 
Senate Office Building, Senator Herman Welker (acting chairman 
of the subcommittee) presiding. 

Present : Senators AVelker and McCarran. 

Present also : Robert Morris, chief counsel ; J. G. Sourwine, special 
counsel; Benjamin Mandel, research director; and Robert McManus, 
professional staff member. 

Senator Welker. The meeting will come to order. Counsel may 
proceed. 

Mr. Morris. Senator Welker, yesterday afternoon the subcommittee 
received an answer from the request made to the Department of Jus- 
tice with respect to its latest letter asking for the dissemination of the 
derogatory security information reports on William Ullmann, Irving 
Kaplan, Maurice Hyman Halperin, and Edward Fitzgerald. 

In connection with Fitzgerald, the Justice Department said there 
would be a further delay in submitting that information. It is not yet 
readv. 

In addition to the dissemination reports on the three individuals 
that I have mentioned, we received considerable other material that 
I AYOulcl like to have go into the record. 

Senator Welker. Very well. 

Will you state for the record the purpose? It is to make a con- 
tinuation of the record that you have built up heretofore? 

Mr. Morris. Senator, there were nine cases that the Internal Secu- 
rity Subcommittee has been working on with particularity. These 
are nine individuals whom our record shows to have been members 
of the Communist underground organization and who were retained 
in office long after derogatory security information was submitted to 
the various executive agencies of Government. 

The reason that the committee selected these nine, as you know, was 
that they decided to take a sample grouping of nine and run those 
particular ones down. In the course of that accumulation, several 
names have been added; in fact, Ullmann's name was not on the orig- 
inal list, but because he was shown to have been so close to Harry 
Dexter White, that he, too, was brought into the situation. 

The same thing happened for Solomon Adler, who, because of his 
^important position in the United States Government up until 1950, 

1247 



1248 INTERLOCKING SUBVERSION IN GOVERNMENT 

when he was Treasury attache in China, had his name added. Those 
two names have been added in the course of the accumulation. 

Senator Welker. Very well. Proceed, Counsel. 

Mr. Morris. The first document that came back, Senator Welker, 
is headed "Dissemination Listing." It says : 

There is being set forth hereinafter the dissemination which was made on 
10 individuals in letters and summaries disseminated to various agencies and 
individuals in the executive branch of the Government. The individuals referred 
to are as follows : 

Solomon Adler 

Virginius Frank Coe 

Harold Glasser 

Maurice Hyman Halperin 

Irving Kaplan 

Victor Perlo 

Abraham George Silverman 

Nathan Gregory Silvermaster 

V^illiam Henry Taylor 

William Ludwig Ullmann 

I might say that we have not requested the William Henry Taylor 
case. Senator, inasmuch as that was not one of the cases selected for 
particular scrutiny. William Henry Taylor was heard in executive 
session, but that is as far as we have gone on that case. However, it 
is here in the report, and, dependent on your wishes, shall we put 
it into the record ? 

Senator McCarran. I would say so. 

Senator Welker. I would suggest that it go into the record. 

Mr. Morris. The listing sets out the individuals named in the sum- 
mary. The remaining dissemination is set out separately, under the 
name of the individual. 

Senator McCarran. May I ask a question, Mr. Chairman ? 

Senator Welker. The Senator from Nevada. 

Senator McCarran. In regard to these individuals whom you have 
named, where are they at the present time? Do you know? How, 
if at all, are they employed in this country ? 

Mr. Morris. I will go through the list. Senator. 

Solomon Adler is now in England. Even though a naturalized 
American citizen, he has not returned to the country, and has allowed 
his passport to expire. 

Virginius Frank Coe, as you know, was Secretary of the Inter- 
national Monetary Fund a year ago, when he was subpenaed before 
the committee. Since that time he has taken some kind of commer- 
cial employment. He was dismissed by the International Monetary 
Fund. 

Harold Glasser was, until the last few months, connected with a 
Jewish charitable organization in New York City. 

Maurice Hyman Halperin is head of the Latin-American Studies 
Department at Boston University, if he has not been recently sus- 
pended. He was there when he appeared as a witness before our 
committee. 

As to Irving Kaplan, I do not think I could tell you what he is 
doing. 

Victor Perlo is working for the International Publishers, I believe. 
Senator, in New York City. At least the record will show precisely 
what he is doing. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1249 

We have not had dealings with Abraham George Silverman in 9 or 
10 months. 

Nathan Gregoiy Silvermaster and William Ludwig Ullmann are 
builders in New Jersey, and William Henry Taylor, mentioned here, 
even though we have not asked for his report, is presently employed 
in the International Monetary Fund. 

This letter reads : 

In the interest of brevity, dissemination data relating to all 10 individuals 
as set forth in the various documents described below and the listing sets out 
if the individual is named in the svimmary. The remaining dissemination is 
set out separately, under the name of the individual. 

The first is the letter to Harry Hawkins Vaughan. The date is 
November 8, 1945, sent to the White House by means of a letter dated 
November 8, 1945. 

In this letter the following individuals are mentioned : Halperin, 
Perlo, Silverman, Silvermaster, and Ullmann. 

There was a summary : "Soviet Espionage in the United States," 
dated November 27, 1945. Dissemination of that was to the White 
House in a letter to General Vaughan, dated December 4, 1945; De- 
partment of Justice, memorandum to the Attorney General, dated 
December 4, 1945; Department of State, letter to the Secretary of 
State, dated December 4, 1945; and a copy delivered personally to 
Mr. Fred Lyon for Spruille Braden on December 7, 1945 ; and the 
Department of the Navy, a letter to Secretary Forrestal, dated De- 
cember 7, 1945, personally delivered on December 7, 1945. 

In this summary the following individuals are mentioned : 

Adler, Glasser, Halperin, Perlo, Silverman, Silvermaster, Taylor, 
and Ullmann. 

A summary, "Soviet Espionage in the United States," dated De- 
cember 12, 1945, and a parenthetical remark is "(similar to November 
27, 1945, summary)" was delivered by letter to Admiral Leahy, Chief 
of Staff to the President, dated February 20, 1946 ; 

To the Department of State, in a letter to Mr. Lyon, dated March 
15, 1946; 

To the Department of the Army, letter to General Vanclenberg, 
G-2, dated February 26, 1946, personally delivered, February 28, 
1946; 

Department of the Treasury, letter to Secretary Vinson, dated 
March 5, 1946, personally delivered March 6, 1946 ; 

Department of Justice, copy delivered to Mrs. Stewart of the 
Attorney General's Office on July 24, 1946. 

In this summary the following individuals are mentioned : 

Adler, Glasser, Halperin, Perlo, Silverman, Silvermaster, Taylor, 
and Ullmann. 

With respect to those two reports, we have many sections of those 
particular reports in our recorcl. That is, commencing last March or 
April we began to put fragments of the November 27, 1945, report 
into our record. 

Here there is a summary memorandum on Harry Dexter "V^liite, 
dated February 1, 1916, delivered to the White House, letter to Gen- 
eral Vaughan, dated February 1, 1946, personally delivered on Feb- 
ruary 4, 1946; 

Department of Justice, letter to Attorney General, dated February 
4, 1946 ; 



1250 INTERLOCKING SUBVERSION IN GOVERNMENT 

Department of State, letter to Mr. Lyon dated February 1, 1946, 
personally delivered on February 4, 1946. 

In this summary the following individuals are mentioned : 

Adler, Coe, Glasser, Halperin, Kaplan, Perlo, Silverman, Silver- 
master, Taylor, and Ullmann. 

Now, the next item. Senators, is a summary entitled : "Underground 
Soviet Espionage Organization (NKVD) in Agencies of the United 
States Government,'' dated February 21, 1946. 

That was disseminated to the White House by means of a letter 
to General Vaughan, dated February 25, 1946, personally delivered, 
February 26, 1946 ; 

To the Department of Justice, by letter to Attorney General, dated 
February 25, 1946, personally delivered February 26, 1946 ; 

To the Department of State by letter to Secretary Byrnes, dated 
February 25, 1946, personally delivered February 26, 1946, and a 
memorandum to Mr. Lyon, dated March 13, 1946 : 

To Admiral Leahy, by letter to Admiral Leahy, Chief of Staff to 
the President, dated March 13, 1946 ; 

To the Department of the Treasury, by copy to Secretary Vinson, 
personally delivered on March 4, 1946 ; 

To the Central Intelligence Group by letter to Admiral Souers, 
dated April 2, 1946; and to the 

Department of the Army, by letter to General Vandenberg, G-2, 
dated March 7, 1946, and personally delivered on March 8, 1946. 

Senator McCarran. Just a moment right there, where you men- 
tioned letters delivered to Admiral Leahy. 

Mr. Morris. Yes, sir ; that is the report. 

Senator McCarran. You mentioned letters delivered to him when 
he was adviser to the President ? 

Mr. Morris. When he was Chief of Staff to the President. 

Senator McCarran. He was not Chief of Staff, was he? He was 
adviser to the President, was he not? Was Admiral Leahy ever Chief 
of Staff? 

Senator Welker. I believe he was adviser to the President. 

Senator McCarran. He was on the President's staff. That is, he 
was adviser to the President. 

Mr. Morris. I will try to ascertain that. Senator. 

Senator McCarran. The reason I bring up the question, although 
it is not important, is that my understanding was that all of the 
reports Avith reference to Harry Dexter White were delivered to the 
Chief of Staff, as well as to the President at the time. Wliat is the 
fact as to that? I am now speaking of the Chief of Staff. 

Mr. Morris. Senator, one of the persons receiving this distribution 
was General Vandenberg. Now, that was dated March 7, 1946. I 
do not know in what capacity he received that, Senator. Mr. Mandel 
is making a check now. 

Senator McCarran. He would not have received it as Chief of Staff. 
He was head of the Air Force. 

Senator Welker. He was in G-2, Intelligence. 

Senator McCarran. I do not know whether he was in Intelligence 
or not. 

Senator Welker. Yes ; I believe he was. Senator. 

Senator McCarran. I am interested in knowing whether or not 
rejDorts on Harry Dexter White were delivered to the Chief of Staff. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1251 

If SO, they should have found their way down to the proper echelon 
in the x\rmy, it would seem to me. I do not know who was the Chief 
of Staff when these reports were sent in to the A^'liite House. 

INIr. INIoREis. Senator, Mr. Mandel is makinoj a fast check right now, 
and I will have that information in just a few minutes. 

The Department of the Treasury, copy to Secretary Vinson, per- 
sonally delivered on March 4, 1946; 

Central Intelligence Group, letter to Admiral Souers dated April 
2,1946; 

Department of the Army, letter to General Vandenberg, G-2, dated 
March 7, 1946. Personally delivered on March 8, 1946. 

In this summary the following individuals are mentioned: 

Adler, Coe, Glasser, Halperin, Kaplan, Perlo, Silverman, Silver- 
master, Taylor, and Ullmann. 

Senator, the reason that they list those particular individuals is 
because we have requested information on those particular people. 

As you know from the 1945 summary, there are many other names 
mentioned. 

Here is a short summary "Underground Soviet Espionage Organi- 
zation (NKVD) in Agencies of the United States Government," dated 
February 21, 1946. 

The parenthetical remark is: 

This is a short summary broken down by Government agencies in which 
suspected individuals v/ere employed. 

Senator Welker. For the purpose of the record, will you define 
what NKVD is? 

INIr, Morris. That was the Soviet intelligence organization. In 
this summary the following individuals are mentioned : 

Adler, Coe, Glasser, Halperin, Kaplan, Perlo, Silverman, Silver- 
master, Taylor, and Ullmann. 

The next is a summary entitled "The Comintern Apparatus," dated 
March 5, 1946. 

The agency or individual transmittal was : 

Admiral Leahy, letter to Admiral Leahy, Chief of Staff to the 
President, dated March 7, 1946. 

Again that description is given. 

Department of Justice, memorandum to the Attorney General, 
dated March 7, 1946; 

Department of State, letter to Secretary Byrnes dated March 7, 
1946. . . . . " 

In this summary the following individuals are mentioned : 

Adler, Glasser, Perlo, Silverman, Silvermaster, and Ullmann. 

Next is a summary entitled "Soviet Activities in the United States," 
dated July 25, 1946. 

The agencies are to the White House, letter to Attorney General, 
July 25, 1946, enclosing 2 copies. One copy for "\Miite House for 
delivery to Clark M. Clifford, Special Counsel to the President; 

Department of Justice, letter to the Attorney General, July 25, 1946, 
enclosing copy for the Attorney General ; copy furnished Miss O'Don- 
nell, of the Attorney General's Office, on August 5, 1948, at Attorney 
General's request. 

In this summary the following individuals are mentioned : Adler, 
Coe, Glasser, Halperin, Kaplan, Perlo, Silverman, Silvermaster, 
Taylor, and Ullmann. 



1252 INTERLOCKING SUBVERSION IN GOVERNMENT 

Next is a summary "Undero:roimd Soviet Espionage Organization 
(NKVD) in Agencies of the United States Government," dated Oc- 
tober 21, 1946. 

Agency of individual transmittal: 

White House, letter to George E. Allen, Presidential adviser, dated 
December 16, 1946. Personally delivered December 20, 1946; 

Department of Justice, letter to Attorney General dated November 
27, 1946 ; letter to Attorney General dated December 2, 1946, furnish- 
ing additional copy; letter to Mr. A. Devitt Vanech, Special Assist- 
ant to the Attorney General, on December 6, 1946 ; 

Department of State, letter to Secretary of State, November 25, 
1946, delivered November 26, 1946 ; and letter to Frederick B. Lyon, 
December 12, 1946, personally delivered December 13, 1946 ; 

De]3artment of the Treasury, memorandum to Assistant Attorney 
General T. Vincent Quinn, dated March 6, 1948, with copy to be made 
available to Mr. Edward Foley of the Treasury Department. 

In this summary the following individuals are mentioned : 

Adler, Coe, Glasser, Halperin, Kaplan, Perlo, Silverman, Silver- 
master, Taylor, and Ullmann. 

Next, Senators, is a summary memorandum entitled "Summary of 
Soviet and Satellite Espionage and Communist Activities in the 
United States," dated December 15, 1948. 

Agencies are : The Department of Justice, transmittal memorandum 
to the Attorney General, dated December 17, 1948. 

Senator McCarran. What do you mean by that? Your heading is 
Department of Justice and then you say "transmittal." Who trans- 
mitted it ? 

Mr. Morris. These, Senator McCarran, are the FBI reports. 

Senator McCarran. In other words, the FBI reports were trans- 
mitted to the Department of Justice? 

Mr. Morris. Transmitted to the Department of Justice by memo- 
randum to the Attorney General, dated December 17, 1948, and then 
the next item is to the White House. 

Senator McCarran. That was the FBI reports? 

Mr. Morris. Senators, these are all FBI summaries : Letter, dated 
December 17, 1948, to Maj. Gen. Harry Hawkins Vaughan ; 

Department of Justice, memorandum to the Assistant Attorney 
General, Alexander M. Campbell, dated December 21, 1948; 

Department of State, letter to George C. Marshall, Secretary of 
State, dated December 21, 1948, personally delivered December 22, 
1948, to C. H. Humelsine, for General Marshall ; 

Department of Defense, letter to James V. Forrestal, Secretary of 
Defense, dated December 21, 1948, personally delivered to Colonel 
Wood, aide to Secretary Forrestal, December 22, 1948 ; 

Department of the A'ir Force, letter to W. Stewart Symington, Sec- 
retary of the Air Force, dated December 21, 1948, personally delivered 
to Secretary Symington, December 22, 1948; 

National Security Council, letter to Bear Adm. Sidney W. Souers, 
Executive Secretary, National Security Council, dated December 21, 
1948.^ 

This was delivered to J. P. Coyne, National Security Council, De- 
cember 22, 1948. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1253 

Atomic Energy Commission, letter to David E. Lilienthal, Chair- 
man, Atomic Energy Commission, dated December 21, 1948, personally 
delivered December 22, 1948 ; 

Atomic Energy Commission, letter to Adm. Lewis L. Strauss, Atomic 
Energy Commission, dated December 21, 1948, personally delivered 
December 22, 1948 ; 

Department of the Army, letter dated December 21, 1948, to Maj. 
Gen. Stafford L. Irvin, Director of Intelligence, General Staff, Depart- 
ment of the Army, delivered to General Boiling, Intelligence Division 
of the Army, December 22, 1948 ; 

Department of the Navy, letter to Eear Adm. Thomas B. Inglis, 
Chief of Naval Intelligence, Department of the Navy, dated December 
21, 1948, personally delivered December 22, 1948; and 

Department of the Air Force, letter to Maj. Gen. Charles P. Cabell, 
Director of Intelligence, Department of the Air Force, dated Decem- 
ber 21, 1948, personally delivered December 22, 1948 ; 

Central Intelligence Agency, letter to Rear Adm. Roscoe H. Hillen- 
koetter, Director, CIA, dated December 21, 1948, personally delivered 
December 22, 1948 ; 

Department of State, George F. Kennan, Department of State, per- 
sonally delivered January 6, 1949. 

In this summary the following individuals are mentioned : 

Adler, Coe, Glasser, Halperin, Kaplan, Perlo, Silvermaster, Taylor, 
and Ullman. 

Finally, the investigative reports submitted by FBI field offices in 
case on "Nathan Gregory Silvermaster, et al.. Espionage — R." 

Prior to the presentation of the case to the Federal grand jury in the southern 
district of New YorlJ in 1947 and 1948, all investisative reports prepared up to that 
time were made available to the oflScials of the Department of Justice responsible 
for the prosecutive presentation of the facts. Reports prepared after the grand 
jury began hearing the testimony and those prepared subsequent to the termina- 
tion of the Federal grand jury have been made available to the appropriate offi- 
cials of the Department of Justice. 

Senator McCarran, Who's Who shows that Admiral Leahy is listed 
as Chief of Staff between 1942 and 1950. 

Senator Welker. Chief of Staff to the President. 

Mr. Morris. Mr. Chairman, may this letter from Mr. Rogers, Deputy 
Attorney General, to Senator Jenner, dated December 15, 1953, with 
all the transmittal information, go into the record, together with this? 

Senator Welker. Without objection, it will be admitted. 

(The document referred to was read into the record by Mr. Morris.) 

Mr, Morris. Would you like me to read that. Senator? 

Senator Welker. I think it should be read for the record. 

Mr. Morris. This is the letter from William P. Rogers, Deputy 
Attorney General : 

December 15, 1953. 

Dear Senator Jenner: Enclosed herewith are dissemination data concerning 
Solomon Adler, Virginius Frank Coe, Harold Glasser, Irving Slgmund Friedman, 
Maurice Hyman Halperin, Irving Kaplan, Victor Perlo, Abraham George Silver- 
man, Nathan Gregory Silvermaster, William Henry Taylor, and William Ludwig 
Ullmann. 

You will notice that in addition to dissemination data concerning each indi- 
vidual, there are dissemination data covering instances where information relat- 
ing to various groups of the above individuals was transmitted to a person or 
agency. 

32918°— 54 — pt. 16 13 



1254 INTERLOCKING SUBVERSION Hi GOVERNMENT 

These enclosures are in compliance with Mr. Morris' request of November 19, 
lO.lo, aiul your letters of November 13, 19, and Decem1)er 3, 1953, in connection 
with and supplementary to the Attorney General's testimony before your subcom- 
mittee on November 17, 19."i3. Similar information concerning Edward J. Fitz- 
gerald, requested in your letter of December 3, 1953, is in the process of prepara- 
tion, and will be forwarded as soon as cf»mpleted. 

This letter will also confirm that dissemination data, concerning the letter of 
November 8, 1945. and the memorandums of November 27, 1945. and February 1, 
1946, relative to Harry Dexter White and others, requested during the Attorney 
General's testimony on Noveml)er 17, 1953, and by Mr. Morris' letter of December 
7, 1953, were fui-nished to tbe subcommittee, together with preliminary dissemina- 
tion data concerning Adler. Coe, Glasser, and Perlo, on November 23, 1953. 
Sincerely. 

William I*. Rogers, 
Deputy Atforney Oeneral. 

Senator, in connection with the indiviclnal dissemination reports, I 
would like to offer for the record eight of these. There are more 
submitted than we asked for. 

Apparently there were several other related cases, such as Abraham 
George Silverman and William Henry Taylor. They are two. We 
are not quite ready for those. Senator. 

I wonder if you vrill only take into the record the following eight: 
Virginius Frank Coe, Irving Kaplan, Solomon Adler, Harold Glasser, 
Maurice Hyman Halperin, Victor Perlo, Nathan Gregory Silver- 
master, and William Ludwig Ullman. 

Senator Welker. They will be admitted. 

(The documents referred to are as follows :) 

Re ViuGiNirs Frank Coe 

In addition to the dissemination which is being set forth separately concerning 
the above, there is being set forth hereinafter the dissemination made on this 
individual in other communications up to the date of his resignation from the 
International Monetary Fund on December 3, 1952. 

LETTER FROM THE WASHINGTON FIELD OFFICE OF THE FEDERAL BUREAU OF 
INVESTIGATION DATED MAY 13, 1947 

Agencij Transmittal 

Department of Justice Memorandum to the Attorney General, 

dated May 17, 1947. 

MEMORANDUM DATED APR. 27, i;»48 

Agencii Transmittal 

Department of Justice Memorandum to the Attorney General, 

dated Apr. 27, 1948. 

REPORT DATED MAY 15, 1951, AT WASHINGTON, D. C. 

Af/ency Tranfunittal 

Department of the Treasurv Forwarded to Treasury Department, 

Feb. 28, 1952. 
Department of State Forwarded to State Department, Sept. 

24, 1951. 
Department of Justice Forwarded to Division of Records, Sept. 

24, 19.51. 

REPORT DATED JUNE 16, 1J»51, AT LOUISVILLE, KY. 

Agency Transmittal 

Department of Justice Forwarded to the Assistant Attorney 

General, Nov. 20, 19.52. 
Civil Service Commission Forwarded Nov. 20, 1952. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1255 

EEPOET DATED JULY 12, 1951, AT CHICAGO, IIX. 

Agency Transmittal 

Department of Justice Fonvarded Nov. 20, 1952, to the Assist- 
ant Attorney General. 
Civil Service Commission Forwarded Nov. 20, 1052. 

REPORT DATED APR. 17, 1952, AT WASHINGTON, D. C. 

Agency Transmittal 

Department of Justice Forwarded to the Division of Records, 

May 1, 19.52. 

Department of the Treasury Delivered i>ersonally on Aug. 14, 1952. 

Department of State Forwarded Aug. 14, 1952, 

Department of the Army Forwarded Sept. 29, 1952. 

REPORT DATED APR. 2.3, 1952, AT RICHMOND, VA. 

Agency Transmittal 

Department of Justice Forw^arded to Assistant Attorney Gen- 
eral, Nov. 20, 1952. 
Civil Service Commission Forwarded Nov. 20, 1952. 

REPORT DATED MAY 10, 1952, AT MIAMI, FLA. 

Agency Transmittal 

Department of Justice Forwarded to Assistant Attorney Gen- 
eral, Nov. 20, 1952. 
Civil Service Commission Forwarded Nov. 20, 1952. 

MEMORANDUM DATED NOV. 18, 1952 

A fjency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General Charles B. Murray, inform- 
ing that copies of reports dated May 
15, 1951, and Apr. 17, 19.52, at Wash- 
ington, D. C, were to be made avail- 
able to Roy Cohn, Special Assistant 
to the Attorney General. 

Re Irving Kaplan 

In addition to the dissemination which is being set forth separately concerning 
the above there is being set forth hereinafter the dissemination made on this 
individual in other communications up to the date of his separation from the 
United Nations on May 29, 1952. 

DEPARTMENTAL APPLICANT INVESTIGATION, 1938-39 

Agency Transmittal 

Department of Justice Copies of investigative reports were for- 
warded to Joseph B. Keenan, assist- 
ant to the Attorney General during 
1938 and 1939. 

SITMMAEY MEMORANDUM ON WILLIAM LUDWIG ULLMANN DATED FEB. 12, 1946 

Agency Transmittal 

Department of the Army Letter to Lt. Gen. Hoyt S. Vandenberg, 

G-2, dated Feb. 12, 1946. Personally 
delivered Feb. 18, 1946. 

LETTER DATED OCT. 8, 1946 

Agency Transmittal 

White House Letter to George E. Allen, Presidential 

adviser, dated Oct. 8, 1946. Person- 
ally delivered Oct. 10, 1946. 



1256 INTERLOCKING Sl/BVERSION IN GOVERNMENT 

LETTER DATED OCT. 3 0, 1946 

Aocncij Tvanxmittal 

White House Letter to George E. Allen, Presidential 

adviser, dated Oct. 30, 1946. Person- 
ally delivered Oct. 31, 1946. 

SUMMARY MEMORANDUM ON HARRY SAMUEL MAGDOFF, DATED DEC. 24, 1946 
AOency Transmittal 

Department of Justice Memorandum to the Attorney General 

dated Dec. 26, 1946, enclosing sum- 
mary memorandum. 

MEMORANDUM DATED MAR. 7, 1947 

^y^ncii Transmittal 

Department of Justice Memorandum to the Attorney General 

on Mar. 7, 1947. 

SUMMARY ON EDWARD JOSEPH FITZGERALD DATED SEPT. 10, 1947 

Agency Transmittal 

Department of Commerce Letter to W. A. Harriman, Secretary of 

Commerce, dated Sept. 10, 1947. 

MEMORANDUM DATED OCT. 29, 1952 

Agency Transmittal 

Department Of Justice Memorandum to Assistant Attorney 

General Charles B. Murray dated Oct. 
29, 1952. 

REPORT DATED MAE. 8, 1951, AT NEW YORK 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General James M. Mclnerney dated 

Mar. 12, 1951. 
Department of State Memorandum to Donald L. Nicholson, 

Chief, Division of Security, dated' 

Mar. 12, 1951. Personally delivered 

Mar. 13, 1951. 
Department of Justice Date of transmital unknown. 

REPORT DATED APR. 25, 1951, AT NEW YORK 

Agency Transmittal 

Department of State Eeport forwarded May 14, 1951. 

Department of Justice Report forwarded to Division of Rec- 
ords, May 14, 1951. 

LETTER DATED APR. 30, 1951 

Agency Transmittal 

Department of State Letter to Donald L. Nicholson, Chief, 

Division of Security, Department of 
State. Personally delivered May 1, 
1951. 

REPORT DATED JUNE 16, 1951, AT NEW YORK 
Agency Transmittal 

Department of Justice Report forwarded to Division of Rec- 
ords, June 27, 1951. 

Department of State Report forwarded to State Department, 

June 28, 1951. 
United States attorney, southern dis- Date of transmittal unknown, 
trict of New York. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1257 

REPORT DATED OCT. 23, 1951, AT NEW TORK 

Agency TranKmittal 

Department of State Eeport forwarded to Department of 

State, Nov. 15, 1951. 

Department of Justice Report forwarded to Division of Rec- 
ords, Nov. 15, 1951. 

United States attorney, southern dis- Date of transmittal unknown, 
trict of New York. 

REPORT DATED DEC. 26, 1951, AT DALLAS, TEX. 

Agency Transmittal 

Department of State Report forwarded to Department of 

State, Jan. 8, 1952. 

Department of Justice Eeport forwarded to Division of Rec- 
ords, Jan. 8, 1952. 

United States attorney, southern dis- Date of transmittal unknown, 
trict of New York. 

REPORT DATED JAN. 2, 1952, AT NEW YORK 

Agency Transmittal 

Department of Justice Report forwarded to Division of Rec- 
ords, Jan. 15, 1952. 

Department of State Report forward to Department of 

State, Jan. 15, 19.52. 

United States attorney, southern dis- Date of transmittal unknown, 
trict of New York. 

REPORT DATED FEB. 25, 1952, AT NEW YORK 

Agency Transmittal 

Department of Justice Report forwarded to Division of Rec- 
ords, Mar. 14, 1952. 

Department of State Report forwarded to Department of 

State, Mar. 14, 1952. 
United States attorney, southern dis- Date of transmittal unknown, 
trict of New York. 

MEMORANDUM DATED MAR. 26, 1952 

Agency Transmittal 

Department of State Memorandum to Donald L. Nicholson, 

Chief, Division of Security. Person- 
ally delivered Mar. 28, 1952. 

MEMORANDUM DATED APR. 3, 1952 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General Mclnerney dated Apr. 3, 1952. 
Department of State Memorandum to Donald L. Nicholson, 

Chief, Division of Security, dated 

Apr. 3, 1952. 

MEMORANDUM DATED APR. 21, 1952 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General James M. Mclnerney dated 

Apr. 21, 1952. 
Department of State Memorandum to Donald L. Nicholson, 

Chief, Division of Security, dated 

Apr. 21, 1952. 



1258 INTERLOCPCING SiJbVERSION IN GOVERNMENT 

MEMORANDUM TO STATE DEPARTMENT DATED MAY 2, 1952 

Afjencii Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General James M. Mclnernev dated 

May 2, lt)52. 
Department of State Memorandum to Donald L. Nicholson, 

Chief, Division of Security, dated 

May 2, 1952. 

Re Solomon Adler, With Aliases, Schlomer Adlek, Sol Adler, Shlomoh Adler 

In addition to the dissemination which is being set forth separately concerning 
the above, there is being set forth hereinafter the dissemination made on this 
individual in other comnuinications up to the date of his resignation from the 
Department of the Treasury on May 11, 1950. 

SUMMARY ON SOLOMON ADLER DATED FEB. 21, 194 7 

Agencij Transmittal 

Department of Justice Letter to the Attorney General, Mar. 

7, 1947. 

letter DATED AI'R. 4, 194 7 

Afjenc;/ Transmittal 

Department of Justice Letter dated Apr. 4. 1947, to Assistant 

Attorney General McGregor. 

MEMORANDUM DATED MAY 29, 194 7 

Agency Transmittal 

Department of Justice Memorandum to the Attorney General, 

dated May 29, 1947. 

MEMORANDUM DATED MAR. 12. 194 8 

Aijcncji Transmittal 

Department of Justice By memorandum dated aiar. 12, 1948, to 

Assistant Attorney General T. V. 
Quinn. 

REPORT DATED APR. 9, 194S, AT NEW YORK 
Af/enc!/ Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General T. V. Quinn, dated Apr. 14, 
194S. 

REPORT DATED JULY 6, 1948, AT WASHINGTON, D. C. 

Auenvii Transmittal 

Department of Justice Letter to Assistant Attorney General 

T. V. Quinn, dated July 22, 1948. 
Civil Service Commission Letter to James E. Hatcher, July 22, 

1948. 

REPORT DATED JUNE 25, 1948, AT NEW YORK 
Agency Transmittal 

Department of Justice Letter to Assistant Attorney General 

T. V. Quinn, July 22, 1948. 

Civil Service Commission Letter to James E. Hatcher, July 22, 

1948. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1259 

REPORT DATED JUNE 26, 1948, AT CHICAGO, ILL, 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General T. V. Quinn, July 22, 1948. 

Civil Service Commission Letter to James E. Hatcher, July 22, 

1948. 

REPORT DATED JUNE 26, 1948, AT LOS ANGELES, CALIF. 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General T. V. Quinn, July 22, 1948. 

Civil Service Commission Memorandum to James E. Hatcher, July 

22, 1948. 

REPORT DATED FEB. 11, 1949, AT WASHINGTON, D. C. 

Agency Transmittal 

Department of Justice Letter to the Assistant Attorney Gen- 
eral A. M. Campbell, Feb. 25, 1949. 

Civil Service Commission Memorandum to James E. Hatcher, Feb. 

17, 1949. 
Department of the Treasury Memorandum to James H. Hard, Chair- 
man, Loyalty Boai'd, Feb. 17, 1949. 

REPORT DATED FEB. 11, 1949, AT NEW YORK 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General A. M. Campbell, Feb. 2-5, 1949. 

Civil Service Commission Memorandum to James E. Hatcher, Feb. 

17, 1949. 
Department of the Treasury Memorandum to James H. Hard, Chair- 
man, Loyalty Board, Feb. 17, 1949. 

REPORT DATED FEB. 11, 1949, AT SAN FRANCISCO, CALIF. 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General A. M. Campbell, Feb. 25, 1949. 

Civil Service Commission Memorandum to James E. Hatcher, Feb. 

17, 1949. 
Department of the Treasury Memorandum to James H. Hard, Chair- 
man, Loyalty Board, Feb. 17, 1949. 

REPORT DATED FEB. 11, 1949, AT OMAHA, NEBE. 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General A. M. Campbell, Feb. 25, 1949. 

Civil Service Commission ^Memorandum to James E. Hatcher, Feb. 

17, 1949. 
Department of the Treasury Memorandum to James H. Hard, Chair- 
man, Loyalty Board, Feb. 17, 1949. 

LETTER DATED MAY 19, 1949 

Agency Transmittal 

Department of Justice Letter dated May 19, 1949, to Mr. Pey- 
ton Ford, Assistant Attorney General. 

REPORT DATED FEB. 20, 1950, AT NEW YORK 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General James M. Mclnerney, dated 

Feb. 27, 1950. 
Civil Service Commission Memorandum to James E. Hatcher, 

dated Feb. 27, 1950. 



1260 INTERLOCKING SUBVERSION IN GOVERNMENT 

MEMOUAXDUM DATED APK. 17, 19 50 

Agency Transmittal 

Civil Service Cominissiou Memorandum to James E. Hatcher, 

Chief, Investigations Division, dated 
Apr. 17, 1950. 

MEMOUANDUM DATED APU. 17, 1950 

Agency Transmittal 

Department of Justice Memorandum to A.ssistant Attorney 

General Mclnerney, dated Apr. 17, 
1950. 

He Haeold Glassee 

In addition to the dissemination which is being set forth separately concerning 
the above there is being set forth hereinafter the dissemination made on this 
individual in other communications up to the date of his resignation from the 
Department of the Treasury on December 31, 1947. 

MEMORANDUM DATED APE. 3, 1941 

Af/incy Transmittal 

Department of Justice Memorandum to Mr. L. M. C. Smith 

dated Apr. 3, 1941. 

MEMOEANDUM DATED SEPT. 5, 1941 

Agency Transmittal 

Department of Justice— Memorandum to Assistant to the Attor- 
ney General Matthew F. McGuire 
dated Sept. 5, 1941. 

EEPOKT DATED NOV. 7, 1941, AT CHICAGO, ILL. 

Agency Transmittal 

Deiiartment of State Report forwarded to Department of 

State Jan. 21, 1943. 

EEPOKT DATED NOV. 8, 1941, AT PHILADELPHIA, PA. 

Agency Transmittal 

Department of State Report forwarded to Department of 

State on Jan. 21, 1943. 

EEPORT DATED NOV. 19, 1941, AT ST. PAUL, MINN. 

Agency Transmittal 

Department of State Report forwarded to Department of 

State on Jan. 21. 1943. 

KEPOET DATED NOV. 19, 1941, AT CHICAGO, ILL. 

Agency Transmittal 

Department of State Report forwarded to Department of 

State on Jan. 21, 1943. 

REPORT DATED NOV. 27, 1941, AT CHICAGO, ILL. 

Agency Transmittal 

Department of State Report forwarded to Department of 

State on Jan. 21, 1943. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1261 

REPORT DATED DEC. 3, 1941, AT WASHINGTON, D. C. 

Agency Transmittal 

Department of Justice Report forwarded to Department of 

Justice on Apr. 14, 1942. 
Department of State Report forwarded to Department of 

State on Jan. 21, 1943. 
Department of Treasury Letter to Secretary of Treasury dated 

Jan. 26, 1942. 

REPORT DATED JAN. 13, 194 2, AT CLEVELAND, OHIO 

Agency Transmittal 

Department of State Report forwarded to Department of 

State on Jan. 21, 1943. 

SUMMARY "SOVIET ESPIONAGE ACTIVITY" DATED FEB. 6, 1946 

Agency Transmittal 

Attorney General Memorandum to the Attorney General 

dated Feb. 7, 1946. 

MEMORANDUM DATED MAR. 7, 19 47 

Agency Transmittal 

Department of Justice Memorandum to the Attorney General 

dated Mar. 7, 1947. 

MEMORANDUM DATED APR. 4, 1947 

Agency Transmittal 

Department of Justice Memorandum to Assistant Attorney 

General D. W. McGregor dated Apr. 4, 
1947. 

MEMORANDUM DATED MAY 17, 1947 

Agency Transmittal 

Department of Justice Memorandum to the Attorney General 

dated May 17, 1947. 

LETTER DATED SEPT. 4, 1947 

Agency Transmittal 

Attorney General Memorandum to the Attorney General 

dated Sept. 4, 1947. 

Re Maurice Hyman Halperin, With Aliases, Maury Halpern, Maurice Halperx 

In addition to the dissemination which Is being set forth separately concerning 
the above, there is being set forth hereinafter the dissemination made on this 
individual in other communications up to the date of his resignation from the 
Department of State on May 31. 1946. 

HATCH ACT INVESTIGATIVE REPORTS DATED DEC. 5, 1941 ; JAN. 15, 1942 ; MAR. 17, 1942 

Agency Transmittal 

Office of Coordinator of Information Letter to Col. W. J. Donovan, Coordina- 
tor of Information, dated Mar. 27, 
1942. 

LETTER DATED MAY 10, 194 6 

Agency Transmittal 

Department of State Letter to Secretary of State, dated May 

10, 1946. 



1262 INTERLOCKING St5^BVERSI0N IX GOVERNMENT 

Re Victor Pkrlo, With Aliases Victor Peulow, Naihax Perlow, Martin 

Strihling 

In addition to the dissemination which is being set forth separately concerning 
tlie above tliere is being set fovtli hereinafter the dissemination made on this 
individual in other communications up to the date of his resignation from the 
Department of the Treasury on March 27, 1947. 

SUMMARY entitled "SOVIET ESPIONAGE ACTIVITT," DATED FEB. 6, 1946 

A'jency Transmittal 

Department of Justice Summary forwarded to the Attorney 

General on February 7, 1946. 
Department of State Letter to Frederick B. Lyon, dated Feb. 

7, 1946. Personally delivered Feb. 11, 

1946. 

LETTER DATED MAR. 20, 1946, ENTITLED "P. BERNARD NORTMAN" 

Aoemy Transmittal 

Department of State Letter to Frederick B. Lyon, dated Mar. 

20, 1946. 

LETTER AND SUMMARY DATED JVLY 15, 1940, REGARDING ROBERT TALBOTT MILLER III 

Af/e)icit Transmittal 

Department of State Letter to Frederick B. Lyon, dated .luly 

15, 1946, delivered July 16, 1946. 

SUMMARY MEMORANDUM DATED DEC. 24, 1946, ON HARRY SAMUEL MAGDOFF 

Agency Transmittal 

Department of Justice Memorandum to Attorney General, 

dated Dec. 26, 1946. 

SUMMARY ON VICTOR PERLO DATED FEB. 21, 1947 

Ai/cncif Transmittal 

Department of Justice Letter to Attorney General, dated Mar. 

7, 1947. 

LETTER DATED MAR. 2G, 1947 

Agency Transmittal 

Department of State Letter to Secretary of State Marshall, 

dated Mar. 26, 1947. 

Re Nathan Gregory Silvermaster 

In addition to the dissemination which is being set forth separately concerning 
tlie above, there is being set forth hereinafter the dissemination made on this 
individual in other communications up to the date of his resignation from the 
War Assets Administration on November 30, 1946. 

MEMORANDU^^ DATED JUNE 30, 1941 

Aiicnvy Transmittal 

Department of Justice IMemorandum to IMr, INIatthew ilcGuire, 

assistant to the Attorney General, 
dated June aO, 1941, 

REPORTS DATED FEB. 21, 1942, AT SAN FRANCISCO, CALIF.; MAR. 5, 1942, AT LOS 
ANGELES, CALIF.; APR, 8, 1942, AT NEW HAVEN, CONN.; APR, 23, 1942, AT WASHING- 
TON, D. C. 

Aocncy Transmittal 

Board of Economic Warfare Letter to Mr. Milo Perkins, Executive 

Director, Board of Economic War- 
fare, dated May 6, 1942, 



INTERLOCKING SUBVERSION IN GOVERNMENT 1263 

REPORTS DATED FER. 21, 1942, AT SAN FRANCISCO, CALIF.; MAR. 5, 1942, AT LOS 
ANGELES, CALIF. ; APR. S, 1942, AT NEW HAVEN, CONN. ; APR. 23, 1942, AT WASHING- 
TON, D. C. 

Atjenoij Transmittal 

Department of Agriculture Letter to Mr. James L. Buckley, Assist- 
ant Director of Personnel, dated May 
6, 1942. 

BEa>0RTS DATED FEB. 10, 1942, AT SEATTLE, WASH.; FEB. 21, 1942, AT SAN FRANCISCO, 
CALIF.; MAR. 30, 1942, AT ALBANY, N. Y. ; APR. 23, 1942, AT WASHINGTON, D. C; 
MAY 14, 1942, AT ALBANY, N. Y. 

Agency Transmittal 

Department of Justice Memorandum to Mr. Lawrence M. C. 

Smith, Chief, Special War Policies 
Unit, dated Sept. 1, 1942. 

EEPORTS DATED OCT. 6, 1942, AT SEATTLE, WASH.; OCT. 9, 1942, AT SAN FRANCISCO, 

CALIF. 

Agency Transmittal 

Department of Agriculture Letter to Mr. T. Roy Reid, Director of 

Personnel, dated Nov. 17, 1942. 

REPORT DATED SEPT. 3, 1943, AT WASHINGTON, D. C. 

Agency Transmittal 

Interdepartmental C5ommittee on Em- Memorandum dated Sept. 17, 1943. 
ployee Investigations. 

REPORTS DATED FEB. 10, 1942, AT SAN FRANCISCO, CALIF.; MAE. 5, 1942, AT LOS 
ANGELES, CALIF.; APR. 8, 1942, AT NEW HAVEN, CONN.; MAY 14, 1942, AT ALBANY, 
N. Y. ; OCT. 6, 1942, AT SEATILE, WASH. ; OCT. 9, 1942, AT SAN FRANCISCO, CALIF, 

Agency Transmittal 

Civil Service Commission Forwarded July 21, 1944. 

SUMMARY MEMORANDUM ON WILLIAM LUDWIG ULLMAN DATED FEB. 12, 1940 

Agency Transmittal 

Department of the Army Letter to General Vandenberg, G-2, 

dated Feb. 12, 1946. Personally de- 
livered on Feb, 18, 1946. 

Re William Ludwig Ullman, With Aliases William Ludwig Ullmann, Lud, 

LuD Ullman, Ludwig Ullman 

In addition to the dissemination which is being set forth separately concerning 
the above, there is being set forth hereinafter the dissemination made on this 
individual in other communciations up to the date of his resignation from the 
Department of the Treasury on March 21, 1947 : 

memorandum on WILLIAM LUDWIG ULLMAN DATED FEB. 12, 1946 

Agency Transmittal 

Department of the Army Letter to Lt. Gen. Hoyt S. Vandenberg, 

G-2, dated Feb. 12, 1946. Personally 
delivered Feb. 18, 1946. 

LETTEB DATED MAB. 7, 1946 

Agency Transmittal 

White House Letter to General Vaughan Mar. 7, 1946. 

SUMMARY MEMORANDUM ON WILLIAM LUDWIG ULLMAN DATED MAR. 7, 1947 

Agency Transmittal 

Department of Justice Memorandum to the Attorney General 

dated Mar. 7, 1947. 



1264 INTERLOCKING SUBVERSION IN GOVERNMENT 

MEMORANDUM DATED MAE. 17, 194 7 
Miency Transmittal 

Department of Justice—- Memorandum to the Attorney General 

dated Mar. 17, 1947. 

Mr. Morris. I vrill have made up a summary for the convenience of 
the Senators here, which will tell the distribution of the FBI reports 
on the individuals named here. 

On Frank Coe, who was dismissed, I believe, from the International 
Monetary Fund on December 3, 1952, there were 9 reports, 9 FBI 
reports made out on him in connection with his Communist activities 
between the period May 13, 1947, and December 3, 1952. 

Now, we have in our record previously. Senators, FBI reports and 
their dissemination prior to this particular date, May 13, 1947. I be- 
lieve there are four of those, Senators, but the record will show how 
many there actually were. 

Senator Welker. Will you show what agencies received these re- 
ports and how many reports were received by them ? 

Mr. Morris. There were 9 reports in addition to the ones we have 
in the record. Justice got all 9 ; Treasury got 2 ; State Department got 
2 ; the Army got 1 and Civil Service got 4. 

Senator Welker. Very well. 

Mr. Morris. On Irving Kaplan, who was separated from the U. N. 
on May 29, 1952, which I believe was just at about the time that he 
appeared before this subcommittee, there were 20 reports between 
1938andMay 29, 1952. 

Justice got 15 of them; Army got 1; the White House got 2; Com- 
merce got 1 ; State Department got 12 ; and the United States attorney 
in the southern district of New York got 5. 

On Solomon Adler, who resigned from the Treasury Department as 
the Treasury attache, on May 11, 1950, there were 17 FBI reports. 

These reports, Senators, all relate to the individual's Communist 
activities. 

^ February 21, 1947, to April 17, 1950, Justice got IG of them; Civil 
Service got 10, and Treasury got 4. 

On Harold Glasser, who resigned December 31, 1947, there were 14 
reports. 

These, Senators, are in addition to the reports we already have in 
the record. 

Between April 3, 1941, and September 4, 1947, Justice received 8 ; 
State Department received 7; and Treasury received 1. 

On Maurice Ilalperin, who resigned May 31, 1946, there were 4 re- 
ports, December 5, 1941, to May 10, 194G. 

The Coordinator of Information received 1 ; State Department re- 
ceived 1; I think there must be a mistake in that summary. Senators, 
because there were 4 reports, and it shows dissemination to 2 agencies. 
(COI received 3.) 

On Victor Perlo who resigned March 27, 1947, there were 6 reports, 
February 6, 194G, to March 26, 1947. 

Justice received 3 and State Department received 4. 

Nathan G. Silvermaster resigned November 30, 1946. 

There were 24 reports, June 30, 1941, to February 12, 1946. 

Justice received 6; Board of Economic Warfare received 4; Agri- 
culture 6; Interdepartmental Committee on Employee Investigation, 
1 ; Civil Service 6 ; and Army, 1. 



INTERLOCKING SUBVERSION IN GOVERNMENT 1265 

William L. Ullmann, resigned March 21, 1947. 

There were 4 reports, February 12, 1946, to March 17, 1947. 

Army received 1 ; the White House, 1 ; and Justice 2. 

Senators, as I say, that is the summation of the eight individual 
reports that I have ottered for the record. 

Senator McCarran. Drawing your attention to Maurice Halperin, 
there appear to have been four reports. He resigned May 31, 1946. 

Between December 5, 1941, and May 10, 1946, there were 4 reports, 
but only 1 to COI and 1 to State, and none to the Department of Jus- 
tice. Is that by any chance an oversight ? 

Mr. Morris. No; I noticed there the same thing. Senator. 

It says the individual reports. As to the Hatch Act investigative 
reports, there were 3 of them, dated December 5, 1941, January 15, 
1952, and March 17, 1952; those 3 were transmitted to Col. W. J. 
Donovan, Coordinator of Information, dated March 27, 1942; that 
should read 3 to COI. 

Senator McCarran. There were none to the Department of Justice ? 

Mr. Morris. Apparently not. I was puzzled by the same thing. 
Senator, but you will notice that in the first thing that we read here 
today, the summaries of all Soviet underground activity, that in al- 
most every case Halperin is mentioned. So this is an additional 
listing. I had the same problem. 

For instance, the letter to Gen. Harry Vaughan mentioned Halperin. 

The letter of November 27, 1945, mentioned Halperin. 

The summary of Soviet espionage in the United States, dated De- 
cember 12, mentioned Halperin. 

Senator McCarran. As a rule, those FBI reports go to the Depart- 
ment of Justice, when they go to any other department. That is my 
understanding. 

Mr. Morris. That is right, Senator, and I think the individual re- 
ports show that, too. That is why that one on Halperin seems to be 
unusual. 

Senators, you will notice that we have not asked for the dissemina- 
tion reports of Harry Dexter White, on the idea that the Attorney 
General has testified rather fully about the dissemination that was 
given to the report on Harry Dexter White, and we have not followed 
that further. 

If you Senators think we should, we can also ask for subsequent 
dissemination, on Harry Dexter White. 

Senator Welker. I think that there should be some subsequent 
listing of the dissemination on Harry Dexter Wliite given the com- 
mittee, so that the record will be complete. 

Mr. MoRBis. Senators, the only other thing I have here is Senator 
Jenner's letter to the Secretary of State, dated December 2, 1953, on 
the Gouzenko matter, which is not yet in our record. 

Senator Welker. Do you care to read it ? 

Mr. Morris. This is dated December 2, 1953. 

Hon. John Foster Dulles, 

Secretary of State, Department of State, Washington, D. C. 

My Dear Mr. Secretary : In reply to your letter of November 28, we are herein 
responding to the Canadian Government. 

After looking over the record of the subcommittee, containing as it does many 
references to important information supplied by Mr. Gouzenko, concerning es- 
pionage in the United States, all of which have now been revealed by us, the 
subcommittee feels, in view of the seriousness of the matter, that it would be 



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derelict if it neglected to accept any ofifer of the Canadian Government allowing 
ns to hear Mr. Gouzenko. 

la deference to Mr. Gouzenko's security, it is hoped that future arrangements 
be worked out by word of mouth and that steps be taken to protect the secrecy 
of these arrangements. 

Very sincerely yours, 

William E. Jenner. 

Senator Welker. Very well. Are there any questions? 

Senator McCarran. What is the status of that Canadian matter 
now ? 

Mr. Morris. Senator ISIcCarran, I spoke with Senator Jenner yes- 
terday afternoon, and, as you know, lie has been calling daily asking 
for reports on when the committee is o;oinf; to hear Mr. Gouzenko, and 
we had postponed hearings all last week in anticipation of a visit to 
Canada. 

We have been holding up several other matters, particularly some 
matters concerning the United Nations, pending that. 

Senator Jenner yesterday said that, inasmuch as it is now getting 
so close to Christmas, rather than deferring the business any longer, 
that he would discontinue his present efforts to see Mr. Gouzenko 
before Christmas. 

In other words, he had been trjnng to get the hearing over before 
Christmas, feeling that January would be a difficult month, in view 
of the meeting of Congress at that time. 

Senator McCarran. I think he is very wise in that. As regards 
the secrecy and security of Gouzenko, I sometimes think that that is 
played up a little too strongly, because, with all the mention that 
has been made of his name and all the publicity that there has been 
about it, I doul)t very much if we are affecting his security. 

Senator Welker. That is true, when you consider all of the inter- 
'views that he has given to leading newspapers and leading writers. 

Mr. Morris. I think. Senators, that I might mention for the record, 
that after there was an exchange of correspondence last week, and 
there was a newspaper report concerning Mr. Gouzenko, two American 
newspapermen called me within an hour after the release was made 
and they had discussed the matter with Mr. Gouzenko, and reported 
that information back, and even said, "Would you like to speak to 
Mr. Gouzenko ? He would be glad to talk to you." 

I said, "I think I had better not speak to him." 

Senator Welker. That was due to an arrangement made by this 
committee that we would not discuss the matter. 

Mr. Morris. That is right. We have been very scrupulous in not 
having anything to do with Mr. Gouzenko, because we are dealing 
through the State Department and the Canadian Government, but he is 
being accessible, apparently, very readily, to American newspapermen. 

Senator McCarran. That is what I have reference to there. 

Senator Welker. Do you have anything further. Counsel ? 

INIr. Morris. No, Senator, I have nothing more. 

Senator Welker. If not, the open meeting will suspend, and the 
acting chairman would like to have an executive meeting with Sena- 
tor McCarran, and with the staff. 

There will be no reporters present. We will not need a transcript. 

( "\Vliereuj)on, at 11 : 35 a. m. the committee j^roceeded into executive 
session.) 

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