Evening star., 1954-11-06
Here's One of Big Issues in Davies Case

tive-talked about the proposal
to a representative of the Cen
trail Intelligence Agency. Just
what happened still is disputed
The CIA man. Lyle II. Munsor
(1ow in business in New York;
has testified that Mr.. Davies
wanted CIA to employ" six per-
sons - Agnes Sm edley, Anna
Louise Strong, Mr.. and Mrs
John Fairbank and Benjamin
K. Schwartz,
Senator Mccarthy, Republi-
can. Wisconsin. has charged
that Mr.. Davies was trying tc
worm leftistS or Communist
into CHA.
Mr.. Davies testified that he
didn't want CIA to employ" the
six, but rather set them up in a
separate Office where their serv-
ices could be utilized" by CHA
perhaps without the six knowing
what job they were doing.
Part of IPR Probe.
The Senate Judiciary Commit
tee. as part of its investigation
of the Institute of Pacific Rela-
tions, heard exhaustive testi-
mony on MFR. Davies scheme.
This committee placed in the
record an affidavit which MIR
Munson prepared for the Federal
Bureau of Investigation. Mr.
Munson sWore::
Mr.. Davies expressed the feel
ing that the aforementioned
(six) persons should be used by
OPC (Office of Policy Co. -Ordina-
ton in CIA) and that the con-
sultation and guidance materials
prepared by them would repre-
sent the proper approach. Mr.
Davies said that he would be
perfectly confident to put Profes-
sor and Mrs. Fairbank at the
head Of a unit charged with
producing such materials. He
said that he was aware that they
were considered Communists by
some uninformed persons. but
that they were not Communists
but only very politically So
phisticated.'
1T was Davies suggestion that
the above persons be situated
physically in an Office or suite
of offices somewhere other 1han
Washington (probably New York
or Boston) and that through a
.cut-out of OPC choosing, these
persons provide not only guild
ance, but actually produce ma
terials, for OPC utilization.
Sought Russian Expert.
Davies was particularly in
sistent that DR.. Schwartz, of the
Russian Research Institute at
Harvard, be retained by OPC for
policy guidance in certain fields
of it's activities, and noted that
DR.. Schwartz had been most
helpful to him as a consultant.
In the language of intelligence
officers, a "cut-out" is 60
between. He presumably would
heha CIA agent reporting to the
CA and working! with six dis
puted persons. They would not
know he was a CIA agent.
In view of this, the counsel
for the McCarran Committee
asked Mr.. Munson at a public
hearing:
WAS he (Mr. Davies) making
a recommendation of this ma
ture: Get A, B, C. D, E and F
together, find out what they
say, and then do the opposite?"
Mr.. Munson replied: mo;
Mr.. Davies expressed the feel
ing that consultation and guild
ance and materials coming from
a unit composed of these persons
and prepared by them would
represent a proper approach to
certain activities and response
bilities of the Central Intelligence
Agency"
Denies Implication.
Mr.. Davies later denied every
implication that he was trying
to infiltrate Communists into
CIA for subversive purpose.
But the McCarran committee. in
recommending a grand jury in
vestigation of possible perjury by
Mr.. Davies, said:
"Of six people recommended
for employment or utilization,
four have been shown to have
had Communist connections, one
had been exposed by November,
1949, the time of the recommen-
dation, as in international Com
munist agent"
The Internal Security Com
mittee cited seven alleged con-
f1icts in the testimony of Mr.,
Munson and Mr.. Davies. The
committee suggested that the
Justice Department consider
sending the matter to a grand
jury for a possible perjury case
against Mr. Davies.
The Justice Department. how
ever, decided against trying to
get an indictment of Mr.. Davies.
Why the Justice Department
made this decision was not dis
closed. but some key persons
have gone to Mr.. Davies defense.
Backed by Gen. Smith.
One is Gen. Walter Bedell
Smith, who became head of the
.CIA after Mr.. Davies made his
disputed proposal. When Gen,
Smiths nomination to be Under
secretary of State was before
the Senate Foreign Relations
Committee, Gen. Smith testified:
.'Mr. Davies made the proposal
to Mr.. Munson that a group OF