Investigation of Charges that Proposed Security Regulations Under Exec

It is not intended that investigative agencies should use this discretion to decline to reveal sources of information where such action is not essential.

(d) The Attorney General shall currently furnish information to the Civil Service Commission on all organizations designated by him in accordance with the criterion established in subparagraph vi of the recommendations under paragraph 3d of Executive Order 9806. The Civil Service Commission shall disseminate this information to all departments and agencies together with any other current information on related loyalty problems. It shall be the responsibility of the Loyalty Review Board, hereinafter provided, upon request, to advise any department or agency on loyalty matters.

(e) The loyalty boards of the various departments and agencies, hereinafter provided, may be called upon by the Civil Service Commission or the Loyalty Review Board for reports to indicate the number of loyalty cases on which a determination has been made during a given period.

(f) Each department or agency shall be responsible for the loyalty investigation of any of its employees whenever it is deemed necessary. Those departments and agencies not having investigative organizations will use the investigative facilities of the Civil Service Commission.

(g) (1) There shall be a loyalty investigation of all persons entering the employ of any department or agency. All investigations of persons entering the competitive service shall be conducted by the Civil Service Commission, except in such cases as are covered by a special agreement between the Commission and any given department or agency. The investigation of all persons entering the employ of any department or agency, other than those entering the competitive service, shall be the responsibility of the employing department or agency.

(2) The investigation shall be conducted either before or after a person goes on the pay roll. In the case of a person entering the competitive service, if the investigation continues after the date he goes on the pay roll and is not completed within 18 months from that date, the condition that his employment is subject to investigation shall expire except in a case where the Civil Service Commission has made an adjudication of disloyalty and the case continues to be active by reason of an appeal.

(3) A full field investigation shall be conducted of those applicants designated by the head of the employing department or agency, such designation to be based on what he considers to be in the best interest of national security.

(4) An investigation short of a full field investigation shall be made on all other applicants at all available pertinent sources of information, such as:

i. Federal Bureau of Investigation files.

ii. Civil Service Commission files.

iii. Military and naval intelligence files and the files of any other pertinent intelligence or governmental investigative agency not previously referred to. iv. House Committee on Un-American Activities files.

v. Local law enforcement files at the place of residence or employment, such as municipal, county, and State.

vi. School and college.

vii. Former employer or employers.

viii. References.

ix. Any other similar checks as may be appropriate.

If any of these sources reveal derogatory information, there shall then be a full field investigation.

(h) Each department and agency to the extent that it has not already done so, or the Civil Service Commission, shall submit lists of the names of all of its incumbent employees (and such other necessary identifying material as the Federal Bureau of Investigation may require) to the Federal Bureau of Investigation of the Department of Justice, which shall check such lists against its records of persons concerning whom there is substantial evidence of being within the purview of paragraphs (i) to (vi) of the recommendations herein made under paragraph 3d of Executive Order 9806. After such check is made each department and agency shall make, or cause to be made by the Civil Service Commission, such other investigation of its employees as the head of the department or agency shall deem advisable, as indicated by the aforesaid check.

(i) That the President direct the Security Advisory Board of the State-WarNavy Coordinating Committee to draft uniform minimum rules applicable to the handling or transmission of all confidential documents, or other documents or information which should not be publicly disclosed, and upon approval by the President, such rules shall apply to all departments and agencies of the executive branch of the Government.

Under paragraph 3b of Executive Order No. 9806, it is recommended as follows: (a) The responsibility for acting upon investigative reports shall be left to the respective departments and agencies and not to a central agency or committee. (b) The head of each department and agency shall appoint a Loyalty Board or Boards of not less than three members each for the purpose of hearing loyalty cases. (c) There shall be established in the Civil Service Commission a Loyalty Review Board with power:

i. To advise all departments and agencies on all problems related to ememployee loyalty.

ii. To disseminate all information pertinent thereto.

iii. To coordinate the employee loyalty policies and procedures of the various departments and agencies.

iv. To make any rules and regulations deemed necessary to implement applicable statutes and Executive orders.

v. To make reports and submit recommendations to the President from time to time whenever such actions are deemed necessary to the maintenance of the employee loyalty program.

vi. Except in cases arising in a department or agency which is authorized to remove an employee summarily for security reasons (as now provided for in Public Law No. 808 and under the McCarran rider), the Loyalty Review Board shall have power to review cases involving subversive or disloyal persons and to make advisory recommendations thereon to the head of the employing department or agency. Cases which are subject to review may be referred to this Board for advisory recommendations either by an employing agency or department or by an employee in the executive branch of the Government who has been adjudged to be disloyal or subversive. Under paragraph 3c of Executive Order No. 9806, it is recommended as follows: (a) An employee who is charged with being disloyal shall have a right to an administrative hearing before a loyalty board in the employing department or agency. He may appear personally, accompanied by counsel or representative of his own choice, with witnesses, and present any evidence, including affidavits, in bis behalf. Each department or agency shall prescribe regulations for the conduct of these hearings.

(b) The employee shall have the right to reply in writing to the charges so made and each agency shall serve a written notice on such employee containing:

i. A statement of the charges preferred against him, the specification of such charges to be as complete as security considerations permit.

ii. A statement that he has a right to reply to the charges in writing within a reasonable period of time, to be specified.

iii. A statement as to his right of hearing, if he so desires, at which he may personally appear with counsel or representative of his own choice, and witnesses, and present evidence, including affidavits, in his own behalf. (c) When a loyalty board recommends removal there shall be, prior to removal, a right of appeal under provisions prescribed by the head of each department or agency.

(d) The rights of hearing, notice and appeal shall be accorded to all employees, irrespective of tenure or manner, method or nature of appointment.

Under paragraph 3d of Executive Order No. 9806, it is recommended as follows: The underlying standard for either the refusal of employment or removal from employment in loyalty cases shall be that, on all the evidence, reasonable grounds exist for believing that the person involved is disloyal to the Government of the United States. Individual employee activities and associations which may be considered in this connection include one or more of the following:

i. Sabotage, espionage, or attempts or preparations therefore, or knowingly associating with spies or saboteurs;

ii. Treason or sedition or advocacy thereof.

iii. Advocacy of revolution or force or violence to alter our constitutional form of government.

iv. Intentional, unauthorized disclosure to any person of documents or information of a confidential or nonpublic character obtained by the person making the disclosure as a result of his employment by the Government of the United States.

v. Performing or attempting to perform his duties, or otherwise acting, so as to serve the interests of another government in preference to the interests of the United States.

vi. Membership in, affiliation with or sympathetic association with any foreign or domestic organization, association, movement, group or com

bination of persons, designated by the Attorney General as totalitarian, Fascist, Communist, or subversive, or as having adopted a policy of advocating or approving the commission of acts of force or violence to deny others their constitutional rights, or as one which seeks to alter our form of government by unconstitutional means.

Under paragraph 3e of Executive Order No. 9806, it is recommended as follows: (a) That the temporary legislation by which the Secretaries of the War, Navy, and State Departments can presently remove any employee summarily for security reasons, be made permanent because of the sensitive nature of the operations of these three departments, and that permanent legislation of the same character be enacted to grant similar power to the Atomic Energy Commission.

(b) That all of the recommendations contained in this report be effectuated by the promulgation of an Executive order which will simultaneously provide for the abrogation of Executive Order No. 9300, dated February 5, 1943.

In conclusion, the Commission recommends that this report, together with any Executive order which the President may issue, be submitted to Congress for consideration.

A. DEVITT VANECH (Justice), Chairman.

JOHN E. PEURIFOY (State).

EDWARD H. FOLEY, Jr. (Treasury).

KENNETH C. ROYALL (War).

JOHN L. SULLIVAN (Navy).

HARRY B. MITCHELL (Civil Service Commission).

(Thereupon, at 4:05 p. m., the committee adjourned, subject to the call of the Chair.)

INDEX

Page

Administrative embarrassment_

Armed services: Making plans with larger industries and some of the
smaller industries as to production in event of war___

32, 33, 45

Make regulation other than that which has to do with the internal man-
agement of the Government__

Code, United States:

Title II, section 192: Witness summoned by authority of either House
of Congress, who willfully makes default__.

2,40

Title V, section 652: Rights of persons employed in the Civil Service
Commission to petition Congress-

Commission on Employee Loyalty.

Creation of Board__

9, 10

Democracy: Depends upon a constant flow of complete information on de-
partmental activities__

Destruction of classified material.

Overclassification__

Executive Order 9835:

Prescribing procedures for the administration of an employees' loyalty
program

Directed subcommittee to prepare regulations (exhibit B).

Draft, first:

Instruction on classifying information_

Drafted by Attorney General__

Rules apply to information received from any and every source and
have to do with information and foreign relations as well as to in-
ternal affairs..

Whereases have to do only with disloyalty of Government employees.-
Federal statutes applicable:

Title II, U. S. C., section 192: Witnesses summoned by authority of
either House of Congress-who willfully makes default_

Title V, U. S. C., section 652: Rights of persons employed in the Civil
Service Commission to petition Congress_

Freedom of press---

Identify preliminary draft-

Information denied re:

Investigators' leads file compiled by the Civil Service Commission
which included-

Views and activities of Congressmen, Senators, and Senators'
wives ___

Names of prominent citizens who were not applicants for Federal
employment.

Paroles granted four Chicago gangsters--

1, 30

What conciliators and mediators were doing in connection with strikes,
labor disputes, and violence__

Information man: Function of, in Government department_

1842

Justification for-

Classification of material which, while not affecting the national
security, might damage the prestige of a Government agency-
No provision for, in final draft of rules..

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Page

Policies of departments: Not to disclose information__

Preliminary draft-"minimum standards"-

43, 44, 46, 47

Prestige of the Nation-detrimental to: Can be construed as broad
enough to include everything- - - - .

Regulations:

Applicable to all departments and agencies of the executive branch
of the Government.

Binding on Members of Congress-

Reports:

Of State Department:

President's Temporary Commission on Employee Loyalty-basis of
Executive Order 9835-

Private report between "big four" Standard Oil companies and
the English oil companies re their negotiations in London
during the past year.

Occupation costs of Germany and Japan_

Suppressed report-number of

Wedemeyer report on China-suppressed....

Roosevelt, Franklin D.:

Speech:

October 23, 1940-"We are arming ourselves not for any foreign

October 30, 1940-"And while I am talking to you mothers and
*
fathers, I give you one more assurance. * **""

Rules: Head of departments can suppress anything and everything that
the Board seeks to classify..

Security Advisory Board: Justified in acting upon terms of its instruction
set forth in paragraph 2 of part 6 of rules for handling of confidential
documents.

Sensitive agencies..

State, War, and Navy Coordinating Committee –

Charter of _ _.

Statutory provisions applicable:

Title II, U. S. C., section 192: Witness summoned by authority of
either House of Congress who willfully makes default_