-r---.- REF ID :A41637..41 

• 

I The Washington Merry-Go-Roundj T~~ .. !7,t~1!.~~r~!?~ ~gsT B 

Ike's Advis~rs Analyze Recession 

By Drew Pearson Advisers Warned Ike -- North America and •even the 

'!'hough the NatiOf!'s business Inside fact is that Dr. Burns names of some of their spies 

is everyone's business, the has be.en giving private warn- back to Moscow by cable. 

testimony now being given be- ings for some time that business Ability to break t'he secret 

fore the Joint Congressional was slipping. Burns is the for- C?de o~ a foreign nation, espe-1 

'.}:. 1 Committee 0 n mer Columbia professor, born cially 1~ warti.!jOe, is the next' ·. /> •the Economic, in .Austria, who was named bes_t th1$t·. to ·having li well- I 

··•···. ··.1·-.··. Re p 0 r t is in cha1:man of _the Council of ~co- tramcd army and navy. And, .:. _ .... secret. A pa- nomic Adv1s_ers last sprmg, on at least one occasion, the ·· rade of econo- af~er the vyh1~e House at first 'secret code of ,the United ;Hates 

m i s ts, official said Ike ~1dn t need any eco- 'maY'. have been stolen BY the 

and unofficial - nomic advisers. Soviet. • < beginning with T~e Preside~t, however, was . Th~s was when the two Brit- ~j. the President's remmded that it was ~P to Con- ish diplomats, McLean and Bur- .. > t 0 p economic gress, not him, to de~1de w~eth: g~ss, suddenly disappeared be- ·.. adviser, Dr. er he needed economic _advis~rs, hi_nd the Iron _Curtain, taking 

'\ Arthur Burns is' and that Congress reqmred _him, w1~h. tl1em va~·10us secrets of • trying to spell by law, to have three advisers British. - American diplomacy 

Pearson out what's be- for the purpose .of helping him While_ th~y had no access to th~ hind the cur- head off depress10n. American code, they did have 

rent recession. 

Though they haven't said it, 

in these exact words, many of· 

the economists agree that the 

basic reason boils down to this: 

When you take 30 billions in 

defense orders out of the econ- omy, you have to replace it 

with something else. 

Spelled out in more detailed 

terms, the 1952 budget called 

for 60 billion dollars of ne\\; defense equipment. 'The 1955 

budget calls for $30,900,000,000. 

This is basic hardware. This 

represents millions of dollars 

worth of steel, copper, aluminum, and all labor that goes - with it. 

And when you take that big a chunk out of Government or- ders, you have to replace it 

with schools, housing, bridges, 

roads or something else. Otherwise the economy is bound to 

slump. 

Ike thereupon acquiesced, ap- d~coded copies of American 

pointed _Dr. Burns, ~ut didn't diplomatic documents, which, 

get around to appomtmg the ~hen matched with coded cop-J 

other. two economists required 1es picked off the airwaves 

by law until late last summer. __ . _ ' 

Now the council is working . · -----. --- overtime. • might have led to breakmg our 

They do not agree with Ray code. ~hat w~s why 50 couriers 

Henle, ~ommentator for the big I ~ere . immed1~tel_y sent from 

Republican contributor, Joe • ashu~gton carrymg a new code 

Pew, and the Sun Oil Co. that to ~o 50 d~fferent embassies abroad warn of a business recession is immediate_ly after ~cLean and 

Communist propaganda. On the Bu~ge_ss sllpped behmd the Iron 

contrary, they believe that to Cm tam. 

head off recession you have to ' If_ Gouzenko is r.ight-and 

examine the economic factors I havu~g spent years handling 

carefully, as they did in Ike's Russian codes, he should know own economic message to Con- -that the Soviet code is un· gress. Furthermore, they do not breakable, it throws light on agree 1with some of the huck- ~h¥ our intelligence is so poor 

sters immediately around the I' ms1de the Soviet. 

President that the way to pre- rcopvrll!"ht 1954 Bell Syndicate, Inc.) 

vent a recession is to repeat over and over again: "We can- , Read Drew Pearson's column 

not have a recession." ' every day, including Sunday, 

The present recession is prob- in The Washington Post. Hear 

ably nothing to worry about, him Snndays on WTOP radio 

provided it isn't permitted to 

go any deeper. The best way to at ll:l5 P· m. and W'.r.OP-TV 

prevent it, they suggest pri- at 11:30 p. m. 

vately, is to make sure that the 

axing of Government spending 

is not too sudden and to replace 

defense spending with at least some peace~ime spending. 

Unbreakable Code 

One interesting thing Igor 

Gouzenko told me during my 

visits with him in Canada was that the secret Russian code is 

unbreakable. 

This, he explained, is because a virtually different code is 

used for almost every sentence. , This was also why· the Russian 

Embassy in Canada was com- pletely brazen about sending .

1 

the atomic secrets they stole in 
• REF ID:A4163741 

------------·-. -----. ......__ --- --------'1- . f,, 

\ 

' 

r=-~~'1 'ROUND,/ By Dr.ew Pearson 

"-'..._ (The author or this commn ts given the \ 9""'Q ~ridest Jatitude. Hls vle~s do not neces- itartlv rellecl tbose ol tbe Mirror.) . · , 

. . -- 19S"At 

WASHINGTON, Feb. 2. -, One interesting thing Igor 

Gouzenko told me during my \ 1 visits with him in Canada was il 

! that the secret Russian code 

is unbreakable. . · [ 

This, he explained, is because f 

virtually a different code is used }. 

·~ ~i~s a~fs~st\\~v;rih:er{~~sci;n ~~~ \ 

· bassy in Canada was completely ~' 

· secrets they stole in North • brazen about sending- the atomic {,· 

' America and even the riames of some of their. spies back to Mos- cow by cable. . } , 

_Ability to break the secret code !. 

of a foreign nation, especially in \ 

vartime, is the next best thing to > 

aving well-trained military fore- . ·I.,. es. And on at le·ast one oc~asion, 

the secret code of the United ~ 

1 States may have been stolen by i 

. 

. 

. the Soviet. I 

This was when the two British 

diplomats, McLean and Burgess, 

suddenly disappeared behind the 

' Iron Curtain, taking with th~m 3 various secrets of .British-American diplomacy. 

While they. had- no access to 

the American code, they did have 

decoded copies of American diplomatic documents, which when 

matched with coded copies picked 

off the air-waves; inight have led 

to brea·king our-code. 

That was why 50 couriers were Immediately .sent from Washington carrying a' new code to 50 

different embassies abroad im· 

mediately after McLean and Bur· 

gess slipped behind the Iron 

Curtain. . . .. 

~( DURING THE war the United 

States broke the Japanese secret 

code almost at will. This was 

)!..., \ what Jed to American victory in "~ the Battle of Midway, where the 

U. S. Navy, intercepting a Japa-

\ 

nese message, learned that its 

r fleet was converging near Mid· . 1 - way for an all-out attack on the 

1 "' ' United States. 

-~ i Almost the entire U. S. fleet in 

-" I the Pacific was immediately ' <_ J' :s rushed to Midway, resulting in a 

1 · '\ victory which crippled the Japa- : ~ 1 nese fleet for keeps. 

· \. I A Chicago -newsman aboard 

:: I one of the American vessels al- . most revealed that we" had the 

1 ; Japanese code by publishing the 

\ 

t entire list of the Japanese fleet- -, which could only )'lave been ob· 

tained by breaking their code. A 

grand jury was called- to prosel

' cute, but dropped the case in the 

end, when the Japanese failed to . realize the significance of the 

·published list. 

If Gouzenko is right-and having spent years handling Russian 

COMIC DICTIONARY 

Earth: Our planet, the inter- ' 

ior of which is very hot but'. 

the exterior. of which is not so hot. -· · 

codes, he should know-that the 

Soviet code is unbreakable, it 

throws light on why our intelligence is so poor inside the Soviet. 

Washin9ton Whirl 

HERE'S THE 0

Democrats' new slogan for ·this year's elec· 

tions, for use especially in farm areas: "Yote Democratic ·in '54- -the f~rm you- save-may be your 

own" ... So many Gls have 

been railroaded in foreign cOurts 

that the army will ask Congress 

for authority to hire lawyers to 

defenu them. The difficulty is 

that in foreign countries Gis can be· jailed for .offenses that 

may not be considered crimes in 

this country •.. Vice President 

Nixon has explained privately to 

Senators that President Eisenhower not only wants to strip 

convicted Communists of their 

·citizenship, but to make it irrev· 

ocab1e . . • Congratulations 'to 

Lieut. Col. George Bales, nn air 

force fighter pilot; w~10 painted scenes of the Korean war between missions. Now back in 

this country, he sold his paintings for a handsqme profit ,{nd 

donated the ni.oney to Korean 

relief. South Korean· Pi·esitlent 

Syngman Rhee heal'tl about It 

and sent him a personal letter 

of thanks. · 

Maritime Probe , I 

TWO WEEl\S AGO this column l 

toid.,how the Maririme Board'I was. about to. throw away $7,000,- t 

000 by junking one of the largest, , fa,stest cargo vessels afloat. 

The ship, the Cornhusker 

Mariner, cost the taxpayers $9,-

500,000 and was only six mon.ths . old when it went aground off the 

Korean coast: Though the ship 

could be repaired in Japan for 

$2,500,000, Washington bureau-· 

crats, this column reve2led, decided to turn the ship into scrap. 

Following publication of. the: 

story, two separate Congressior_ial · investigations have stai:ted. Both· 

the House Maritime Committee! 

ahd the Senate Interstate and• 

Foreign Commerce Co'mmittee'. 

want· to know exactly what's bei 

hind the strange decision tc; 

scrap ·a· vessel now valued af 

$7,000,000. J 

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• REF ID :A4163741 e 

The Washington · Merry-Go·Roundl T~~in~~~,~~~,~;?~ ~2ST 8 

Ike's Advisers Analyze Recession 

By Drew Pearson North America and even the might have led to breaking our names of some of their spies code. That was why 50 couriers 

Though the Nation's business back to Moscow by cable. were immediately sent from 

is everyone's business, the Ability to break the secret Washi~gton carrying a new code 

testimony now being given be- code of a foreign nation, espe- ~o 50 d~fferent embassies abroad 

fore the Joint Congressional cially in wartime, is the next immediately after McLean and , Committee on best thing· to having a well- Burge_ss slipped behind the Iron 

·the Economic trained army and navy. And, Curtarn. 

Re p o r t is in on at least one occasion, the If Gouzenko is right-and 

secret. A pa- secret code of the United States having spent years handling 

rade of econo- may have been stolen by the Russian codes, he should know m is ts, official Soviet. . -that• the Soviet code is un· and unofficial, This was when the two Brit- breakable, it throws light on beginning with ish diplomats, McLean and Bur- why our intelligence is so poor 

the President's gess, suddenly disappeared be- inside the Soviet. 

top economic hind the Iron Curtail'), taking rc'opyrt~ht 1954 Bell Syndicate, Inc.) 

adviser, Dr. wi.,th them various secrets of 

Arthur Burns is British - American diplomacy. 

trying to spell While they bad no access to the 

out what's be- American code, they ~id have 

hind the cur- decoded copies of American '~ rearson 

rent r~'l::ession. diplomatic documents, which 

ThouglJ they have!].'t said it when matched with coded copin these t?Xil.."i: words, many of ies picked off the airwaves, 

the econoh1ists agree that the 

basic reason boils down to this: f···-----·-------

When you take 30 billions in ; 

defense orders out of the econ- ; 

omy, you have to replace it ; 

with something' else. : Spelled out in more detailed ; 

terms, the 1952 bndget called : for 60 billion dollars of new de- : fense equipment. The 1955 ~ 

budget calls for $30,900,000,000. : This is basic hardware. This : represents millions of dollars • worth of steel, copper, aluminum, and all labor that goes 

with it. 

And when you take that big a chunk out of Government or- ders, you have to replace it 

with schools, housing, bridges, 

roads or something else. Otherwise the economy is bound to 

slump. 

Advisers W arnecl Ike 

Inside fact is that Dr. Burns 1 

has been giving+ private warn- ' 

ings for some time that business was slipping. Burns is the former Columbia professor, born 

in Austria, who was named 

chairman of the Council of Economic Advisers last spring, 

after the White House at first 

said Ike didn't need any eco-

. nomic advisers. 

The President, however, was 

, reminded that it was up to Cont gress not him, to decide wheth1 

er he' needed economic advisers, 

and that Congress required him, 

by law to have three advisers · for the' purpose of helping him 

head off depression. 

Ike thereupon acquiesced, appointed Dr. Burns, but didn't 

get around to appointil')g the 

other two economists required 

by law until late last summer. 

l

'< Now the council is working f 

overtime. 

They do not agree with Ray I 

I Henle, commentator for the big, 

Republican contributor, · Joe ,• 

I 

Pew and the Sun Oil Co. that to I 

war{i of a business recession is '

1 Communist p!'opaganda. On the 1 

contrary, they believe that to l 

head off recession you have to 

examine the economic factors 

carefully, as they did in Ike's own economic message to Congress. Furthermore, they do not 

agree with some of the huck-: o:'~-,....\•C' i..-v--...,,.,-1~ ... ""1 ..... ~v-,...,·~r,.:i ~-hrRead Drew Pearson's colum.n 

every day, including Sunday, 

in The Washington Post. Hear 

him Sundays on WTOP radio. 

at 11:15 p. m. and WTOP-TV 

at 11:30 p. m.. 
REF ID:A4163741 

w~ ~tZA-/ 11 ~ S-.::-f 

'The Federal Spotlight 

National Security Agency 

Shilts to Ft .Meade Oct. 1 

By Joseph Young 

The super-secret National Security Agency is set to begin its 

I 

move to Fort Meade, Md., b:y 'the first qf October. 

Now in two locations at Nebraska avenue and in Arlington i 

Hall, the agency has had to set back the movii:ig date several 'I 

1 times. Howrver. agency off.cials feel reasonably certain the move 

I 

can be started by October. : --

. The nu~?er of ~he agency's 1 town to confer with Fr -

I 

employes 1s a classified matt~r, I Recreation commit.t~­

but the NSA has grown steadily on special r--

d u ring the ratp.o • last few years · vr and numb·., 

thousands o 1 

workers. 

Present 

plans call for 

retaining some of the work at 

Arlington 

Hall. 

Hall until the 

unit is moved 

to Warrenton, 

Va., within the 

~re :o~ ye a r Joseph l'ouns. 

The agency has made -hous- ' 

ing and other arrangements for \ 

its employes transferred to the : main buildings being established 

I 

at Fort Meade. Various types of 

housing facilities, as well as schools and shopping centers, are being built. 

Some NSA employes have indicated they will not move with 

the agency to Fort Meade and 

already are looking for other 

jobs. 

• * • * 

,