Evening star., 1950-03-28
High Commerce Aide
0verruled Lee Loyalty
Report, Malone Says
BY jones J. CuIIinone

SNhSS - S0IItl0hS
Charges that a departmental
loyalty board report describing q
division chief as mot good
security risk" had been overruled
by a high Commerce Department
official were made today before q
Senate committee by Senator
Malone. Republican, of Nevada.
A few minutes later the COM
mittee was told that the Com
merce Department loyalty board
has reopened its investigation OF
Michael j. Lee. chief of the Far
Eastern Division of the Office OF
international Trade, on the basis
Of new evidence supplied by the
Federal Bureau of Investigation.
Thomas c. Blaisdell, jr., Assist
ant Secretary of Commerce, re-
fused to answer question as to
whether the loyalty board had
previously described Mr.. Lee as a
doubtful security risk. He said
he was prevented from answering
the question by an executive order
forbidding disclosure of loyalty
program files.
Hearings Still Under Way.
On August 10, 1949, Mr.. Blais-
dell said the departmental loyalty
board advised Mr.. Lee that it had
found that reasonable grounds
do not exist to believe that you
may be disloyal to the Govern
ment of the United States"
The Civil Service Commission
on January II supplied additional
information to the loyalty board
which was passed on to the FBI
Mr.. Blaisdell said.
A report from the FBI was re-
ceived on February % and on
March 6. Mr.. Lee was notified
that his case had been reopened
Mr.. Blaisdell said. Hearings are
still in progress, he added.
Investigation of Mr.. Lees
qualifications, honesty, COM
potency, efficiency and loyalty
was demanded in a resolution in
PRODUCED in the Senate February
II by Senator Malone.
Changed Name in 1892.
Appearing before a Commerce
subcommittee, Senator Malone
said Mr.. Lee was born in Harbin,
China, of Russian Hebrew par
ents who christened him Ephriam
Zlnovi Liberman. He changed his
name after he came to the Unsldl
States in 1882.
He applied for citizenship ir
1885. but Federal court in Chi
cago denied his petition on the
grounds of mot good character;
not attached to principals of the
Constitution of the United States;
incompetent witnesses" A second
petition for citizenship was denied
in 1888 on the ground that preju-
dice established by the first court
order had not expired. A third
petition filed August 4, 1899, was
dismissed at Mr.. Lees request.
On February 4, 1941, Senator
Malone brought out, Mr.. Lee filed
a new petition for citizenship
which was granted on June 9, 1e41
He went to work for the Govern
ment at the Board of Economic
Welfare on June 18, 1912.
Asked FBI Inquiry in 194S.
Mr.. Blaisdell said the Commerce
Department asked for an FBI full
field investigation" of Mr.. Lee
after receiving certain state
ments" in October, 194S. Mr.. Lee
apeared before the Loyalty Board
on March 8, 1949, Mr.. Blaisdell
said.
Senator Malone, who ha:
charged that Mr.. Lee used his Of
fetal position to delay shipments
OF aviation gasoline to the Chinese
Nationalists air force at the
height Of the battle against the
Chinese Communists, said he had
tried in vain to get the files OF
the departmental Loyalty Board
which investigated Mr.. Lee.
MY information is," Senator
Malone said. that the evidence
did not prove Mr.. Liberman &C
tually disloyal, but reported that
he was poor security risk. Some
one overruled that and I under
stant it was Mr.. Bernard L.
Gladieux, executive assistant to
the Secretary of Commerce, who
is a protege Of Henry Wallace. ]
understand he has exercised the
power of nullifying decisions OF
the so-called loyalty board"
Mr.. Blaisdell stoutly defended
Mr.. Lee and said "his work has
been of great benefit to the De-
partment Of Commerce.
Bricker Calls for Names.
Secretary of Commerce Sawyer
personally reviewed all factors in
volved in Mr.. Lees case follow
ing the first loyalty investigation
and directed that he be kept on
his duties as chief of the Far
Eastern Division, Mr.. Blaisdell
said.
Senator Bricker, Republican, of
Ohio demanded the names of the
departmental loyalty board men,
bers who are now investigating
Mr.. Lee. They are South Trim
BILE. jr.. chairman; Oliver Short
and Gerald Ryan. Senator Ma
lone suggested that Mr.. Trimble
be called before the subcommittee
Teacher Loses Finger