Evening star., 1953-06-04
Puzzled Senator's
Call fol. Transcript
IN Frank Coe Probe
By Cecil HoIlonld

bizarre story of Frank Coe. for
naer official Of the international
Monetary Fund. and his iactivi-
ties, have encountered strange
currents.
One involved whether the 46-
year-old economist, whose home
is in nearby Arlington, had
sought to manipulate an Aus
trian currency devaluation pro-
gram in 1949 that would have
served the advantage of Soviet
Russia and CommuniSt-con-
trolled Czechoslovakia.
Mr.. Coe was fired last Decenl-
ber from his $20. .00O-a-year tax
free position with the monetary
fund after refusing to tell Sem
ate investigators whether he was
a Communist.
Dulles Sister in Conference.
In pursuing its, inquiry, the
Senate Investigations subcom-
mittee found involved in the tes-
timony the name of Mrs. Eleanor
Lansing Dulles. the sister of Sec
retary of State Dulles.
It all came about in this way.
The Senators investigating the
Austrian currency matter and the
alleged connections Of Mr.. Coe
with it-learned that a five hour
telecon communication was con-
Quoted by Government officials
here with a negotiating commit
tee in Austria, and, it was said,
sought to suspend the negotia-
tions to devaluate the Austrian
currency.
Senator Mundt, Republican, OF
South Dakota, acting chairman
of the Senate Investigations Sub-
committee, said that information
indicated that Is persons in the
State Department and from other |
Government agencies, partici-
pated in the discussions from this /
end.
One Of these, Senator Mundt
said, was Mrs. Dulles, who the
State Department. said, has been
a financial adviser in the State
Departments Office of German
Austrian Affairs since 1912.
Asks for Transcript.
Senator Mundt said the SUBJ
committees information indi-
Gated Mrs. Dulles was about
the third from the end of the
group here in the discussions on
the Austrian currency matter.
What position she took in the
matter was not indicated.
Senator Mundt said the sub
committee had asked for a
transcript of the 1949 telecon
discussion and an explanation
from the appropriate Govern |
ment officials.
He announced this after the |
subcommittee had questioned |
Mr.. Coe in a closed hearing yes
terday. After the hearing, SUBJ
committee members said Mr..
Coe had refused on conStitu-
tional grounds to say whether
he was a Com munist and
whether he had engaged in
espionage activities while hold
ing for six years the position as
secretary of the monetary fund.
Another question to which
Senator Mundt wanted an an
sWer was why Mr.. Coe was con-
tinued in the lucrative position
after 1948 testimony before the
House Committee on Un-Ameri-
can Activities had linked him
with an espionage ring here and
after he had been denied a pass
port in 1851 to travel abroad on
official business.
Senator Mundt said it was
completely incredible" that the
monetary fund, an agency of
the United Nations. should have
continued Mr.. Coe in Office after
he had been denied passport.
Fired Last June.
Mr.. Coe was fired from the
International Monetary Fund
last June 4 at the demand of
the Senate Internal Security
Subcommittee. The demand was
voiced after Mr.. Coe had refused
at a New York hearing to say
whether he was a member of
the Communist Party.
The former official is sched-
uled to appear before the Senate
subcommittee at 10 am. to-
morrow in q closed session, and
at 10:30 am. in a public hear
ing for testimony on the Austrian
currency matter. At the hear
ing yesterday, Mr.. Coe, accord
ing to the subcommittee mem
bers. requested an opportunity
to read the transcript of the
hearing last Friday during which
1t was alleged that instructions
over his name had ordered the
suspension of negotiations to de-
valuate the Austrian currency.
After the closed hearing, Mr..
Coe told reporters it was IAN
outrageous falsehood to say that
he had been q fugitive from the
subcommittee"
Has Been Out of Country.
He said that he had been out
of the country for two months
in Canada, the Caribbean and
Mexico-looking for work, when
he read that the subcommittee
had asked the FBI to help To-
cate him. and had described him
as a fugitive.
He added that he was in Mex
leo when he learned of this and
Immediately returned to this
country to appear before the
subcommittee.
Mr.. Coe said he still maintains
his home at 1918 North Roose-.
welt street. Arlington. But on
the advice of his attorney, he
declined to answer when asked
why it was that his wife, accord
ing to the subcommittee chief