Evening star., 1951-12-14
His Work in China
And Accuracy Of
Predictions Noted
CONTINUED From Page A-6)

munist headquarters at Yenan
and from other sources, Mr..
Service believed that the Com
munists were putting up a more
effective fight against the Japa-
nese that the Nationalists, and
that the Communists should be
helped. This view was shared
by other observers, and it ap-
pears to have been Services
honest opinion. That he held
and reported such opinion is, in
the Judgment of this panel, no
reflection upon his loyalty. Fur
thermore, it was a part of his
duty to confer with the Com
muniStS and report upon what
he found and his conclusions
as to what should be done. 1t
should also be noted that there
are many reports from those ia
miliar with Mr.. Services work
which are highly commenda-
tory"
Concerning the employees con-
duct in other respects while on
assignement in China, we have in
the file no sufficient evidence toI
support a doubt on the question:
of loyalty. There is. however, tes-
timony of Patrick j. Hurley before
the Armed Services Committee of
the United States Senate at hear
ings held in June, 1851, indicating
that the employe may have given
a Chinese Communist official a.
copy Of his report of October 10.
1914, to Gen. Stilwell, entitled
The Need for Greater Realism in
our Relations with Chang Kai-
shek." This is the report known
as Services Report No. 40. This
testimony was not available to us
at the time of our hearing, and
the employe was not examined
upon it. We, therefore, make no
finding with respect to this ques-
tion but make note of it as a sub
Ject worthy of inquiry should there
be further proceedings in this case.
A review of the entire file. in
cluding the testimony at the hear
ing before the State Department.
board, also satisfies us that no
reasonable doubt concerning the
employees loyalty arises from his
activities while assigned to the
staff of General Macarthur in
Tokyo.
There is no evidence in the file
that the employe was ever a mem
ber OF the Communist Party or
of any other organization on the
Attorney Generals list.
Dealings With Jaffe.
There remains for consideration
the employees dealings with Philip
C. Jaffe of New York, the editor
of Amerasia, and with others after
his return from China on April
IL, 1945, and up to the time of his
arrest in connection with the
Amerasia case on June s. 1915. In
this connection reference is made !
to the following provision of Ex-
ecutive Order 1886:
Part V-Standards: il
20. Activities and associations I
of an applicant or employe
which may be considered in con-
nection with the determination
of disloyalty may include one or
more of the following
ID. Intentional, unauthorized /
disclosure to any person, under
circumstances which may indi-
cate disloyalty to the United
States, of documents or infor-
nation of confidential or nom
public character obtained by
the person making the disclo-
sure as a result of his employ
ment by the Government of the
United States"
There is no evidence that the
employe stole or abstracted from
the official files and transmitted
to Jaffe or any other person any
official files. Such files found in
Jaffe's possession appear to have
come from Emmanuel S. Larsen,
Andrew Roth, or some other
source. 1t was on this charge that
the Grand Jury in the so-called
Amerasia case found no bill
against Service. 1t is not disputed.
however, that Service did inten-
tionally lend for a period of time
to Jaffe from to 10 copies which
he had retained in his files of his
reports made during his official
visits to the Communist head
quarters in Yenan during 1914 and
1945, and that he orally gave Jaffe
considerable information con-
cerning what he had learned
while on Government service in
China and that these reports and
some of this information was of
confidential or non-public
character.
The practice of giving out in
formation appears to have been
SOulCWlldt lUOOC, UuG ~ 10 SICd1
there was. at least to some extent,
a breach of State Department
regulations. The only question re-
manning is whether these diScloS-
ures were of such a character or
were made under such circum-
stances as to lead to the con-
clusion that there is reasonable
doubt concerning the employees
loyalty to the Government of the
United States. We shall now ad-
dress ourselves to that question.
The employe left Yenan on
April and arrived in Washing
ton from China on April IL, 1945,
bringing with him his file copies
of his Yenan reports for 1914 and
1945 and also originals for the
State Department of some of his
1945 reports. The others had been
distributed by him through chan
nels while in China. These State
Department copies he says he de-
livered at the State Department
shortly after his arrival, and
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