OFFICIAL VERBATIM TRANSCRIPT OF HEARINGS BEFORE SPECIAL SUBCOMMITTEE OF THE JUDICIARY COMMITTEE OF THE HOUSE OF REPRESENTATIVES IN CONNECTION WITH ITS STUDY OF THE ANTI-TRUST LAWS

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CIA-RDP59-00882R000200380001-5
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November 16, 2016
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April 18, 2000
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1
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October 3, 1955
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Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Official Verbatim Transcript Of .Hearings Before Special Subcommittee of the Judiciary Committee of the House of Representatives in Connection With Its Study of The Anti-Trust Laws. Pabl:.hrd by THE BUREAU OF NATIONAL AFFAIRS. INC. B NA 1231 24th St,Nt, N. W. Wosbingtow (7). O. C_ Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 C O N T E W T S TESTIMONY OF : Peter A. Strobel, Commis:sioner or Public Buildinzs Service, Accompanied by : Roger Robb, Counsel - Resumed Sol Schwarz, New York, New York Edwin Ii. Lawton -- resumed. (Afternoon 342) John F.. H'&11, Director of Compl ?an-ce D_v_s 1vn, General Service: Maxwell ti. Elliott, General Counsel, General Services Adralfistratlof PAGE 249 301 321 -z65 406 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 WO%s AND GOVERNI NJ' - AD'f L / RY GROUPS 247 Friday, O t obey ?8, :955 . House of #'?epresentatIves nt : ust Subcaitttee of the .c.:.^.'ttee o:a t.nt- .:u 3tetery, Wz shingtoon, D. C- -_ The s::bcommittee Met- lursuant - . ati Journ` -. nt at := o'clock a . ri . , in Root! 3~ " "''. c' H u. i' ; ce Bu t fd i~~t: , zsone rab1e Emanuel "el le-r. presidlncll, Pr-~-: s?n~ and Keating. Al-.,-, ^-^esent : He.?b~ rt ii. ; trobeI in fat :;4 to see any eon: 1.ict -&,* i~~le: eft bit=.ec r. hl Fade rat duties ac:d hi eoatiriu 90 per cent lntcreat Is. ne .:.':; -_.e yc,r;sultiuj, f em :.E ariyrg hi. name. In the lost '_ ct.'), Pr Ch3 irr..4 , knows, there w*0 PPPFbved Pror~R ~e se`2 0 113 :'CAA-RDP59=008ff 1 Ob~200 b~?-5 y cu'. `):' ' ? ist of Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 252 compiled . The Chairman. That will be accepted. (The matter referred to 19 as roilowa : ) Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 252 The Chairman. Do you want that at the pc 1 nt -Oc- 4 I-'1d 1CQted or now in the record? W. Robb. It doesn * t make any u : ff?erent:e to ;ar wk.1ch..ver wary ';ham" Oha it pr'- fers . `.re Ch.t 1_-?tn2n . It w-111 be put in at this point. Strobe 1 . There ir: oz other point, t na : ~- though tie testimony as it via.. given the other day is tf-hnlc::s 31Y correct , the imprPSSicn that ha3 been -:.3Je by pralzman are each en7 the % to a drawing account of $12,000 yearly", Mr. Strobel. I don: t think so. I thinl. Mr. Maletz. $15,000 a year. Is it also not true that under the arrangement. the amount of money remaining after- deducting froc-i the pro.'itu the drawing accounts, is to be distributed 90 per cent to N".r. Strobel and 10 per cent to Mr. Salzman? Mr. Strobel. That 15 correct. Mr. Fine. Mme'. Chairman, before you ask and. 1 u.-t'-er questions I want to clarify something you have just 5tate-1 In a~%?sr op`=niag remarks. I would 111:e very much to ha ...- you, %U-. Robb, if y,t_-'_ will, provide this coc 1ttee v-1th your ccnte:*t = :%s alleged violation or Section 783 IL *.:, gals of T it ie 18 of t7ze Z,;n yted States Code. In no far as It relates to tt. t claim ?~:.t - w:za pro:eCu- ted before the Corps of EnCineea?3. I a.n not tor t.t s~ - 1 agree with the Cha firma n there was a v i ota t A_.-n of the : & t 1 cn . TIfte Chairman. I said tt.ere may be. Mr. Fine. Yes, you said there =!2y be. Mr.. Keating. The Liza irrr.3r= said t e:ao, rt _ In ')p1n1on c oski 1 :^~ l s: tereat The Cha irc:a n . That re fe ?z?Cd t c statute, This. :eras 8 matte _? !.h . fl bb. I should be _'Isu to t:xat. r' 'Itz 13+t iven it. Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 s claim was Mr- Strobel' a own claim, his p"'- -u~ ='mss="1 == he Chairrn n . I think your interpretatiot'3 itf bound, but many minds may differ on that. Let t a not get into legal av u- ts. We would be very glad to get 'N -;UT- veraton of this, Ift-. Robb:` I think it might be very enlightening tz th committee. We w:L1-- be 'glad to have :Lt. 11r. Fine. I want to clarify something that was 'crkth%~,ring - me, Mr. Chairman. In the f ir?at paragraph of v-.:-u=' a.P't;z=ng atL'- Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 255 much study up to now. If the statutes were construed to prohibit what Mr. Strobel did, I take it it would mean that it a partner In a firm had a claim for back income taxes or for an income tax refund and he then tool: a Government job. he could not make a claim for that incomf: tax refunc. after he came to Washington, which I think would be a rather peculiar result. I think the statute hzis been construea, air, t^ an that person may not prosecute a claim ea 3n az:~o:it o+- motto--r ey for some other individual or entity not for himacir. In th1 t;eae rnent you used the words - - you were re : ex Y:g '116-11'c- p: ?opri ety 4cz trobel's "official conduct in recommending to your sub- that he award an architectural contract to a very active c - of your firm, namely, Serge Petroll." If I understood f the last hearing. ilr. Strobel recommended Mr. roff only because there was the need for rush In the f 1;%1ng MEMMO- the building on Columbus Avenue, and that qtr. Fetroff, lice a L1 ot?icr a -c zit ~,- is , :yould be ;3O1.n#; the Coder, ,;ant a favor and *"MMMMMPAp For Release 2000/05/03: CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 25-' not that it was a gain to Mr. Petroff personally. The Chairman. There is nothing in the record to chow that; etroff was doing the Government a favor. Fine . I asked the question and it 1s in the record or -71 Strobel and Mr. Strobel answered 1%i the atf trot lvc . Mr. Robb. That is corruct . -Mr. Strobel. I answered it th! ti.3y. It `xould not to a favor to me, it would be a favor to the United -states Government, assuring that we got out of o very tough Situ.at ;,*zr3 . MI Keating. I would 11kc to as.c a queati 2-n c.r two at this Point, Mr-Chairman. The 61~,- htngtcn P;-st has y r j T "-"n an editorial this mcrning...based upon th.- &vtdence to date n:--l b=-'' '?r = the hearings are cam`lobed, in which they = :;,y, they re = to three Incidents recently In the ne?:.:i ::hicl: trey any f ~~==atoms ot'ic2.9'i laxness or Immorality- I tlilnk th~~,y .--ay h-n ='+ 1'- ~zk deal perhaps to their point as to two of the three. 1 am rte, rr1r~ now to the matter before us. T want to be --tirc that 1- h ."p this teetiesony correctly to date which is tht. b-=ais upon whicn '=nis =dttc''ial was written. it refers to the -. emar.c3ble abtu -ne==-J t%f Public Buildings Commlasioner Peter A. strobe-1 In to see any conflict cf interest bet::een h= redera 1 dut ie5 as.:1 ji= -: co. tinued 90 per cent interest the =Insulting, his In the last Admini~t :?e1t a? tie Chair's '.:no +a. there was no one more voc ife. 3u .3 : .~~. ~or:?u2"?tlo+r~, ab+ca t f'4tct of Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 257 interest, Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 aboxAt matters that were not only Illegal. but matters ;ghieh bore on the question of morality, which were unethtea l , and my posiicxvii 3.~ just exactly the same in this Administration. ijowever, in individual cases, when a pa^cicular person is charged it certainly 13 the uuty of this committee, which I know the Chairman shares, to be sure that any person to fairly dealt with and that no conclu3lun : are drawn which are unwarranted. In discussing th . Strob-_-1's testimony this statement Is made: "Mr. Strobel has -esyi f led thst he did work for the New York firm and helped sever.--'! n f' its c 1 ients to obtain contracts after he took hi3 Federal post." That is the basis of their claim of lack or -.orallty. Nor, am I ice. error- that the only ca-,--c- ;hex?e there is even any evidence that you, Mr-. Strobel, helped any cl;ent to obtain contracts was in the Petroff ca3e? Mr. Strobel. That 13 correct. Mr.. 'Keating. The other- case of an architect, some Evans,, Chapman firm was zomething th= t you didn ? t even know was going on. You had no hand in that ::hatevev and the contract was let by a subordinate. - Mr. Strobel. That is correct. Mr. Keating- In other words, the use of "several" is erroneous in the statement I read. Mr. Strobel. That is right. 4r'. Keating. There ..3 only one ins :-Ir*ce , ":hat -3f' Mr. P?troy'? . Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 258 and that is subject to the explanation which yo+a havd'- ,givers here. W. Strobr'l. That is right. W. Keating. that cane you did not to any way !trect your "?..:.urdtnate, as he has testified, to employ Mr. retroft. You simply made the suggest icf of his nacre ae Oise who would do, in your opinion, from experience, would do a satisi"actory Job In a very limited time. Mr. Strobel. That is correct. Mr. Keating . In your ,'udgment, it .gas an unu3ua 1 situet ton; am I correct? Mr. Strobel. That is correct. Mr. Keating. It says that y,-:)u continued your private activities de: pits the clear provisions in the '.tan ard3 of conduct of the parent Gene--al Services Administ j a t it~n, and then It quotes the statement in that so-called code of ethics or something of the General fevvlc es Adcnir.lstration. It says "Mr. Strobel's insistence that he made hto o'..:tat! de connect- ions known to his superiors constitutes an indl tt_er.t of laxity in General Services Admir,i:;trat ion and the Dep3, t~~e!*t o.' for permitting the activities to continue." Juatlce Now, as regards you personally, the witnf?s you did when you signed this document, put down at the i f ?t t om thle atr.te- went to the effect that you w,~ re going to rota 1. . It wa a under- stood that you were to -retain your ter corsnec t = z3a,s, arid that you made known to Mr. ~t-~ u:c?, tie Ar'-ntaletratov of GS=?, that Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 you were going to retain it; Is that correct? 259 W. Strobel. That Is Y?ight. The Chairman. When did you sign tiat document, Mr. Strobel? W. Strobel. The document referred to swat be the one I E1gned December 27, 1954. The Chairman. Was that one year after yo%4:' a ppoir tmeft? A1u?. Strobel. No, that would be five t..onthv after The Chairman. Did you get written approval from anybody to engage in the outside activities? Mr. Strobel. No. I testified there was no written document pointing out that situation. Mr. Keating. It refers to the Department of Justice, Indicating by inference that there Is an allegation on the part of so'.Y'aeore that you have committed a criminal act, because that 13 the only time that the Department of Justice would comae into' Play here. The Chairman ha: stated publicly that in his opinion t.Zis did not constitute a violation of the confl i.t of interest statute and certainly I agree with that. I think in Fairness to you, those things should be brought out. It rat eg a tauch bigger question, :whether anyone coming into Government employ should give up completely all outside busIne3a connFrt ion3 and interests, dispose of )-.is holdin~~s cr:d get out. That can be don+Y Somett+eses with regard to a person who only has stock holdings in a company, when It cannot be done by a person situated like you are, bolus titc_ -;r a s'k p iar c 'f a bt._s 1.n? i3:; `w':. ch you hole b...t..e t it a to r*---tuz'n Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 260 to. Perhaps that is what ?w:p must coQe to in Government in order to divorce Governmen-c 1,~?tcpJe entir---ly frow any possible t+pta -- tion to further their owri :zouisle- - interests as aga ln< t the interests of the Govern:uent. if we e o come to that o~ course, It Is going to result in sc!ne deterioration in the caliber of the people working for the Government. It 1s going to mean that the only people that t=:~`-ec~ the reservation clause to this code of standards fc*rm. you =:a~;; rn-l ee questioned by your supi-r for as to t h proprt ty ^ 'Pi d a question relative theretoO Mr. Strobel. The question was asked by co?an .el the other day if I had been requested to furnish around that t a-:~ a 31St. of the firms, clients, zind I. think I a:.~'..erc'd to the best of my recollection that I couI !. ?'.: x-e*:,e: be.-, :.,L_.t I `Nazi a--:cep later, in further answer t' your gvcnt1an, I :caked by Mr. Xsn3ur I; Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 would say about some time in late- July or early August -- Mr. Maletz. What year, Mr. Strobel? 263 Mr. Strobel. Of 055 -- to get the 11at of clients in, and I did furnish that as fast as I could after that time. Mr. Rodino. When did you furnish that list? Mr. Strobel. It is dated August 30, 1955. Nor. Rodino. When did you sign this reservation? Mr. Strobel. I s- ..ed that December 27, 195k. Mr. Rodino. Did Mr. Mansure at any time suggest to you that the reservation was not in keeping with the code of ethics? Mr. Strobel. No, 51r. Mr. Rodino. And this 11st of clients was furnished to Mr. Mansure some eight months -- you say in August of 1955 -- aoaae eight months - Mr. Strobel. That 13 right. Mr. Rodino. That is all, Mr. Chairman. Mr. Fine. Do you mein by your answer to Mr. Rodino on h18 quest ion that Mr. Mansure after December 27th never Veit that your reservation was a violation or that affidavit? Mr. Strobel. As far as I recall he did not bring up any point until around August lst or some time In July. Mr. Keating. Of this year? Mr. Strobel. Of the a year. Mr. Rodino. One furvhe.r auPrt ion. Mr. Strobel.. It seen co re that from our pr-?vic ~s :ect1 ony you uz-c - tle+ ror quite Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 26 a Ions time with the decision that you were to make as to whether you would sign or not sign this code of ethics form, and that any time durtng that period. prior to your actual Pii.gntng and adding this reservatloes, did you then discus's with anybody whether or not you should ctgn it In teat way os- add the reserva- tion ci%-use? lKr. ='trobet . No. As I te:it1 ft -d the nth&-r day, particular form was on my ciF!:c for a long time. Mr. Rodino. Yes. Mr. Strobel. It got covered up ar:J I -- Mr. Rodl.no. What do you mean by "got cove:-ed ;ap"? Mr. strotel. Under a pile of wor:c. Mr. Rodino. It was an imp,,)rtent document? Mr. Strobel That Js right. It was an lmp334-ta"t docue entt, yes. Mr. Rodino. Weren't you contacted during, th1:s Pe--1.11.0d o!t' time by anyone req>esting that ynu Biers it or at 1Fc3;5.t tak-A aoeie Mr. Strobel. X don't recall. I can't say whets er I was contacted or nc-r. I coo rem.-r1LPr that a rout t ne the .'?~ wn3 a ade on the th?t hz not t A nets in a signed ::tatesetet, and I was among them, and I was ur, ec' to :j1Sn it, ani that to how x came about to sign it on Dec?cr_:b -r 27. ti,#ith reaervat'cns. Obviously I could not sign that in rc i'-h -eithcut ora:,.tn : the reeer'+-atlon. Mr. Rodino. Did the Of'f:ce cf Cerzpllence regae3t you to turn Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 over a list of clients that you might have had? 5 Mr. Strobel. That was what I answered to burr `e. AS Cr aas I can recollect that request.came later; however, that doesn't mean that my memory couldn't ''a11 on that issue. The Cha irtnzn . I would like to as.c you whether as Coc:eelaslon- er of Pul llc Bui 1r31ngs you had, shall I zey, a very large real. esta-cE organization Mr. Strobel. Yes, I think .i would have to admit to that. The Chai_?naiZ. Would you sny it 1S one of the largest in the world? MU-. Strobel. One or' the largest in the %Jtai-11. The Cha trrca a . now r.-,any _?edera l bui idle ,s a s- you reepon - sable for? M--. Strobel. Appvo irately 5,000. The Chairman. And how ~.?ny employees of L.,%e Public Build - ings Service, ho., many does ;t have at the present time? rft-. Strobel. I have in the central office here In iashtsg- ton approximately 3 4 employees. Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 26 The Chasid Fortse"00jW/0jrtIr%z82R000200380001-5 - IV Mr, Strobel. That Is in Washington. We oprate throt h a decentralized usthod and cover our operations thro h ten regions. Tyre are a total of approximately 20,000 Public Buildings Service employees in all the regions. The Chairmen. Do you operate abroad, too, outside the Continental thzited States? 1r,. Strobel. Yes, we have jurisdiction over some people in Puerto Rico and Hawaii and Alas3:a. Tile Chairman. In other words, would you oay, also, that the selection of architects for lease-pt in my handwriting. Mr. Robb. Nor mime, ?h'. -eatin-. The Chairman. Mr. Kilroy was here again. Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mr . Fine . Mr. Chairman,, I would like to know whether or not the photostats that Mr. Maletz prepared and turned over to Mr. Schwarz contained these notations at the time they were turned back to Mr. Schwarz . Mr. Na letz . I havt received a number of documents from 11r . Schwarz - Mr. Fine. Excuse me? Limiting yourself to the original of the letter, you got a letter, dic3n t t you, the original letter, didn't you? 1,1v. Ma letz . ? It was not an original letter, It woo u white photostat which I received from Stz-~bel and Salzman. And we sent that complete photostat to the Photo .service Office of the Library of Congress. 11r. Fine. That photostat, the white photostata that you got, do you recall whether It had any notations on it? Mr. ?laletz. It did. The Chairman. It has them on It. Read them youraelt and Mr. . Ke a , in? . Are those the same notations that are on It The Chairman- They are the same as on the black one. Mr. Fine. That is the que3tion I would like Mr. Schwarz to answer, whether or not the white photostat he gave: you -- or did you give him a white photostat? Mr-. Schwarz. I don e t remerber whether I did give him a white Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 J Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mr. Fine. Do you recall whether the white photc,3ta : was the one which is now before Mr. Strobel? Mr. Schwarz. This white photostat is a pnotostut of another one which "I received from Mr. Maletz 4n Mor. C18Y ? Mr . Fine. Did you give him that -ne, the one t t-: orf you Mr. Schwarz . S do riot ret ,tuber whether t: 1s :ere as to that. Mr. Maletz. Did you discuss that with Mr. Smitht Mr. Strobel. I aright have done that, Mr. Maletz. Do you recall now whether or not you did? z lx- . Strobel. I probably did, yes, Mr. Maletz. And what was the suture of your with W, Smith? Mr. Strobel. That, I don' t think I can reme her. beat .It must have been in connection with the request made the *z'uy. The Chairman. That is, the discussion very 2 AMILy was that you would like to continue with this contract, and aoe'slotlns? also with your intercet in Stroba1 and Sa1z*tf? Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 318 Mr. Strobel. When I took office. I had met up certain rules to govern Strobel and Salz=an. One of the basic rules was that they of course in no way whatsoever could have an ythiz to do with work comissg out of the GSA. at at that tier I thought the office would have a right to do work for other government agencies. However, this contract we are talhisig about, wftloh was negotiated before I took office, is the only prisee contract the orrice has done. No other contract has been negotiated with any other goveruMsut agency. Mr. Maletz. Now, when did you d?a oues that with Mr.. Swlth? Mr. Strobel. I don't know. Mr. Maletz. Did you discuss tt once, twice, or a number of times. m-, Strobel, I east' t anewer to th;1t, because I d ou ' t see that gentleman very otters, living down here. Mr_ Maletz. Did you request Mr. .xnith to do anythi* about this matter? Mr. Strobel. No. I don't think I did, beo"use Lt eras being handled by our lawyers be". The Chairman. Hy your Sawyer, you mouse Mr. -- W. Strobel. The GSA lawyers, Mr. lwa let z . Did you not tell the GSA Sawyers that you bad decided to handle a mat tor, the Corp3 oS I atnaers matter, a different way? Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 319 1~ . Strobel . I aaig t !save said that, bRat to reaollec tioes it wa a not done . The etssirann . What did you UOsn by a different i y? Mr . Strobel . Well. I might have gotten NW Own ].C al a4 tee to handle thin problem. The Chairmans. And you did, tbrougts Mr. Smith? 1dcr . Strobel. He Is not a lawyer. Mr . Metletz. What was the reasons why You Mould dtsosssa the mutter with W. . Smith? Mr. Strobel. Well, I dose' t know of any speait1C rosavm ? Mr. Maletz. Did you tell 00 this, that this I dIvIAhmsl, your adviser, told you that he would make inquiries eon~ :stas this mutter? Mr. Strobel. I aright have told you that, but an far as it worked vest, I don't think he did, ov I don't mow if be did, Mr. Maletz. Was it a correct ntatemsnt mbon you ssado it to me? Mr. Strobel. I don' t Zanow. Mr. Ma.letz. But you do say that you did tell me Mr. Strobel. I had diacuseions. Mr. Muletz. --- that your adviser, lair. 3 1th, told y a that he would make inquiries c one erns ng thie matter? Mr. Strobel. Yed, I might have said that. Mr. Maletz. And did you also tell we that Tour adviser riald that he would endeavor to get the aseatter ats~es ovut Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 with tht Corps of ere? M-. Strobel. Kell. I sight hays said that* AS I said before. I don't think he did anything whatsoever for me. W, Ilaletz . How did you know that ? M.. Strobel. Because X think it was sett led after OW. Elliott and W. Moody talked with I. Ad&a a. Mr. Maletz. The Liatter was eventually - straightealod out? Mr. Strobel. It was straightened out, and w were permitted to complete the contract. Mr. Maletz. To your knowledg?, d1d Mr Sslth do as thI$ whatsoever to straighten this matter up? Mr. Strobel. I don't believe he did. fir. Maletz. Did he tell you that he would do oometh m to straighten the =%tter out? 1Kr. Strobel. He might have said that, X don't ssvw. Mfir. Maletz. He might have. Mr. Strobel. Yea, he aslght have. Mr. Maletz. Do you recall whether or not he indicated bat steeps he would take to straighten the matter out? 'Av. Strobel. No, I don't recall that. The Chaiz .Xa . Xs Mr. Lawton present? Mr, Lawton, step forward. Ta1ce the etund, Mr . Lawton. Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 32i Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 TL$TXMONY OF Eno= He- LJWTON The Chairman. You were sworn yesterday. Mr. Maletz. W. Lawton, have you prepared a dstat1ed state- ment concerning your knowledge of the se2eetiaad of Petrotf a Chapman, Evans and Delahatsty? Mr, Lawton. I did. Mr. . 2daletz. Do you2mve the atateaeeutt before you? ?tr. Lawton. I do. The Chairman. Would you care to read it? Mr. Lawton. Read the entire Statement? The Chairman. Yea, sir. 14r. Lawton. I, Edwin if. Lfsvtoss, Make this atatea~rst in order to clarify may answers to questions asked by Herb !!slots:. Counsel for the House Judiciary Subcoaumittee on October 27.s 1955. I occupy the position of DeputyRegiona2 Director tot the Public Buildings Service, Region 2, New York, N. Y., mZ have been Deputy or Acting Deputy Sin~ese 1950. I aupporviso the operations of a Design and Construction Division, a ButLidltws Management Division, a Real Estate Divielon, a Reel Property Dt aposal Division, and an off ice of the Natlossa2 Iz1uatrial Reserve Division. 1Ky immediate superior to whoa I an directly respvUsible IS Mr. Walter F. Downey, Regional Director or the Niw York Region. The C----Ltssion P of Public Ns32d~.ags, of coesrise, is Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 N r . Strobel who stipervta a the t?ohnioal operations of q orria? I have the authority as Contracting OVrioer to negotiate contracts for architectural service without the approval of any other individual. However, as a matter of praatloe I k a" the Regional Director advised or any negotiations and I would not enter into such a contract without at least the oral approval or the Regional Director. IPurtboruore, wt n I have consulted with Mr. Strobel or his predecessor as Commission r of the Public Buildings Service, I have and would accept x'ecom^ snda- tions and suggestions from then relating to technical matters but would not necessarily be bound to exercise cp/ authority as Contracting Orricer upon their inatructions'. Slaco occupy the position of Deputy Regional Director or acting Deputy Ptoglam&I Director, Pffi, the New York Region has entered Into only two contracts for architectural service. The Chairmen. At that point, as to the architectural services other than those two, those architectural services were rendered by your office? Per, Lawton. I didn't hear the last part. The Chair n. Other than those two you have mentioned, the two contracts for architectural services, as to architectural services required by your office, x:hcc I-v-rfor=ed those mrchitoctUral services? Mr . Lawton. Those , cerv ice n were portormed by cn tnsers Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 employed by Regions 2. 323 The Chairnm get at is th.s. "you signed a contract, or your office signed a contract, with Mr-. zetrott, after you had received instruc t icna from. Washington t,- abandon this project. :dr. Lawton- That iz true. Thnt was the i .:zes~. z baton or an old contract entered into with Petr..ff on tne 271h f August. Mr. Maletz. That was a cox trbct ?-- the et:'ecti a date or the contract was made retroactive to Auauat 27th? Mr. Lawton. It was made effective to Au. ,u t :=; dz. Mr. Keating. You felt you would be going nacc z~:j your word if you d1.dn't mace a contract after ::avtng made tt.at c` ttment'- Mr. Lawton. That is right- The Chai .. an . Even a i ter the rvc_:: .:no abazsdoned ^;e was informed that the work - !'!r_Kesting. Sure, he had atven his word'. Mr. Lawton. ri?. e trcrr hat! ecru= feted certain .c:razea or the work, all of which is doc, t.urer. ted ty his vou--her. Mr. CoaldT- t *- -1% -C'roft have billet: Service f..>r se_?v Ices rer.de.?eu ? bli D atldtnge Mr. Lawton. He did bill them f_-r 5ervice3 rendered in Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 accordance with the terms of the contract. Nr . Ma letz . What I an getting at 1$, assuming that 0 33:3 contract had not been formalized, couldn't Petroff have atIll b:Llled the Governinent or services rendered: Mr. Lawton. Yea, he could. Mr. !1aletz. In other words, it was not necessary to have this formal contract e Mr. Lawton. I consider that it is very destrade to complete the formal contract in a case of that nature. Mr. Maletz. Even after the entire project had been abandon- ed. 1'. Lawton. The fact that INS abandoned thy- the middle of it was not our doing. ct In Mr. Fine. Wasn't the reason that you wantsd the contract formalized to limit the additions and to put in wr ittng the times that you had agreed upon with Mr. wouldn't be any additional change: ?etroft so that there TM1r. Lavvton. That contract was prepared to wrtring before the cancellation of the job, but it was r.ot in shape for foraaul signature until after the actual cancc). L &tlon date. Mr. Fine. There is one problet- that I would 11Ue to have clarified, one situation, if you will. Counsel ror the coGMittee asked you the cuestion, hypothetical question, as to w;hat you would have done had you not had Petrotf in mind when you came to Bow York. And you Indicated that you would Vnen have had to Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 scour the markets or look for an architect. now long would that have taken you? 3 Mr. Lawton. It would take a month under normal c ~Nnditlans to select an architectural firm. It could not have been done that way for this job. W. Fine. It could not have been done? Mr. Lawton. It could not have been done I r we were:- to follow the time limit set by INS. Mir. Fine. So in the beat interest of the kivernt.ent you had to praceed the way you did? Mr. Lawton. It was in my opinion, yes, air. The Chairman. Here way a z-:nah jcb, this wu--z an emergency. and then in addit tor. a number c-,: architects, you said. Could have been hired for tt.e 'ob. And then suddenly there is no rush about It, the job was ab - nd cned . Mr. Keating. That was abandone by IKS. Mr Lawton. Abandoned by IN; . The Chairman. Abandoned by INJ? Mr. Lawton. That is cJrr ect . The Chairman. So that the rush app. ?eat ly was nu311fled by abandoning It? Mr. Keating. Yes. But this fellow ;.itng wv:3 swinging Into action on tfte Public Bu11c=1nz5 peoples and z A111nZ them, You have got to get this out". And they were t -yrtng he wanted. to s:omPiy Kith what Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 335 Mr. Fine. I don't want - my question conrueed by the Cha 1.r=an . I was talking about your talkine to Petrorr than vor- next day and making arrangements with him orally. I am In-+t talking about what happened a Pew weeks later, I said if you hzdn't had Petroff the next day how long would it have taker, you to hire any architects? Mr. Lawton. To go through the norcial procedure it would have taken a month, which we could not afford on thls job. Therefore, I would have had to do the same thing with an architectural firm. Mr. Fine. And exactly what you did with Petrotf would have been done with another firm? Mr. Lawton. That is right. Mr. Fine. E an. referrl:?g no, to entering into t::e written contract even though INS had abandoned the project. Mw.. Lawton. That to right, to sick within the t tme llalt specified. The Chairman. Ga ahead with your statci cnt , Mr.Lawton. I also discussed with Mr. Bergen.- representing Janes L. King and Son. the general construction requirements of the project and naked 1-f he was willing to undertake the work on a coat-plus-fixed-fee contract. Mr. Bergen agreed to under- take the work as soon as drawings and specifications beceae available with the understanding that such drawings and speeIrlen- ti.ons ?:ould be furniahed_ piecemeal and that certain phssea off" tht Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 336 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mario Would be under a onet ruc t i.vn while other pha see were still in the design stage . The p-`eparat tor: c4.f the construct 1o+n contract was undertaken but was not c,:nausasated prl,,r *--.D the cancellat i~,n of the work by INS. On September 14, 1954, Mr. Strobel advteed me by telephone to atop all construction wo. k but to continue th4e des,Zn work. 1Kr. Maletz. Excuse me, Mr. Lawt..n. Why did time a -.c you to continue the design work If the project was aband~T t-d? Mr. Lawton. I believe he did not have a co=pieta- abt ndon-- tent order at that time. He was in contact w:.tri IN-% at the Washington level, and the abandonment order came later. On September 24, 1954, Mr. Jitr4wser telephoned for Mr. Strobel advising that IN=S had decided not to cuc- r*lete 'e alterat i cn:3 and that it would therefore be nec e5 Nary t--, stop all design and construct ion wo:^k. As .>I* the date of cancellation, W. Petroff ceased work on th.e ?oject an A w.'s "paid $9. '>CO for that portion of the wc:rk ccmpleted In accordance tu! th the terms of the contract- The prel imint:ry work pe.-f.:.rcx+e'd by James L. King and Son was also cancelled and their vou=. nera :4: th a complete statement of the conOl t ions were fox-wardeJ to the Comptroller ? s Office, Pegio:s 71, for payment. I h4a :e been advisee that payment in the amount of ?, 165.7 4 has been approved by GAO. There were no telephol:e t ruse lons betwee:: m;'1t and N. Strobel or anyone else i n tk.- C,,.::ntra 1 Gfftce between t se aeetitmg Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 337 on August 26th at which time it was determined to undertake the job and my contractual agreement wi-th Per. Petrorr. X had no knowledge that either Mr. Petroff or 3amen L. K1nr, and Son had been clients of or were negotiating for contracts with i. Strobe l r s firm, Strobel and Salzman. The procedure In contracting with 8?r. Petrott and James L. .n'15 and Sor: di22't ed iti this easc- fray ao eta l pi'& eeduiie only because of the time 11tnita'c # ' * for c ociplet ton of the a lteratlo3r'3s as Imposed on GSA by INS, and the instructions from Mr. StrobeA to take immediate action. Under normal procedures anti In the absence of instructions from Mr. Strobel, a Mist or as?=hitectural firms would have been prepared, a selection of the beat qualified rirm would have been made, and a written contract entered Into prior to commencing the work. Furthermore, the contract to,- the l construct ion work would have been executed on a c'?**-t It t ve bid basis. Such normal procedure would have required five months before construction worlc on the project could start, a :.ozz of time which, on this project, was not feasible. ' htu was the first negotiated architectural contract entered intp by Re,gton 2 since I received appointment as Deputy Regional Dtrect1on In 1950. M? The Internal Revenue Service in conso:.idat ing the bower Manhattan District Office selected the 2d and 3d floors or 201 Variclc Street. Since this building is presently a warehouse considerable alterations are rent tree for cohverelon to orrloe- Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 338 ApjLprdid Fu el sea s v2e0(/5403enaAin~Pe59r-0W&V8W~?38$~~, fable to SSnce undertake the design of the alterations I determined to contract the work to an architectural firm. In June, 1955, I requested Mr. Willtan Boyd, Assistant Division Chief, Construction and Repair Division, Re#$1 on 20 to provide me with a list of architectural tires quaiirle-ci to des; the alte.'ation3 required at :?01 Varick Steet from r+tai~~ a selection would be made. Mr. 3oyd pr ov 1 ded me with the names or York and Sawyer; Koepe'l l anicl Koepa l1 ; Lorimer flich; Chapman* Evans and Delehanty; and SerZe P. Petroff, all New York city. Koepell and "toe?pell were reje: ted by me In consultatl.?:~,n with Mr. Boyd as being below the qualit ie.;tiona c r the remain>nS tour, all of which were considered t:> be on an equal level- I discussed the proposed altE:? .~~n3 with each of the f o r flrua and requested .vow them a lump :3uu price for the work. Mr. Maletz. Now, Mr. lawton, is it not correc -- I don't think thi3 point was clarifi i d yesterday -- thac Zha;-,--an, Evans and Deler= my ?s proposal i:.it:.a1 :y was the hi 3-.e -t - Mr. Lawton. That 15 1ndetc?rmir.F-. in my cpln:n Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 339 Mr. Keating. He went all over that, and t said he couldn't tell whether it was the highest. Mr. Lawton. Mr. Otte Pose, Acting Director, Destgn and Construction Division, Central Office, oubaoquently advised =e that my procedure was verging on eompetition between the architectural firms contrary to policy of the Americas Inotituce of Architects, and advised me to select one f1rm and discuss a price with them. In the event that we were unable to arrive at a mutually agreeable price Mr. Pose stated I should then select anotlu-.r firm. I discussed the proposed firms with Mr. MioQael ]k%anx an, Chief, Construction and Repair Division, Region 2, and Mr. Walter F. Downey, Regional Director, Region 2, whereupon it was decided that mince Mr. Petroff had had a contract with the offiee recently he should be eliminated from the list. The remaining three firms were then discussed and they being equal as regards qualifications, Mr. Downey advised we to ,sta.rt negotiations with the firm or Chapman, Evans axsd Delehanty. I than met with Mr. De l shanty and Mr. ' Downey, and W, De lcI my agreed to accept the work for a tee of $40, OOO, which we had determined wma a proper fee for the work. At no time during the negotiations with the architectural firms did I discuss the selection oP Chapman, .Evans and Delehanty with Mr. Strobel nor did 1 receive any Q teatti **J$ 21'UL: him e ? ti er LsI:i.ttV1 n 01' r ? 3tt'0 1 t cotfl ~~S Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 340 cosLSidera- advised 6"19 tion. T. Was not aware that any of these firma had been clients of Strobel and Salzman. Mr. Boyd advised me that he had selected the five architectural firms because he considered them well qualified. to perform the work. W. Boyd advised that Mr . E)0 1011&n%7 of Chapman, Evans and Delehanty "had visited his crfice 5om4 dart previous to this award and requested infor!aation concorn3-ng subsequent needs by GSA for architectural eer%ices- Mx. Boyd was acquainted with the work of Serge Petroff through his perr'ornsance or a previous contract and he was familiar with the qualifications of Koepell s2r.i Koepell but later determined, in discussion with me, that this latter firm was not as well qualified for this type of project. With regard to the fees submitted by the varlotss architectural firma, Petroff subcnitted the low.. luv-p sism figure or $40,000; Lorimer Rich sutinitted a figure of 145.000; York and Sawyer $53,0001 and Chapman, Evans and Dalehanty submitted an offer or 6 per cent or conett-uctioaz coats- offer was indefinite c.nd under such percentage arranMewcat, t3 eIr tee would not be definitely known until construction bids had been received. 14b L-. Pine- May I ask a question. I just want to gna e x o d r Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 '347 that contract? Mr. Strobel. None whatsoever. Mr. Chairman, may I read this letter? It in addressed to Messrs. deYoung and floakowltz. "Gentlemen: "It hap been called to our attention that yours &s 091e of the firma asking consid..rat:on for architectural ass.gn- ments for projects ems natin3 from the Public Buildings Service of the General Services Adx:iin1ctration. tie do not wish to disqualify you from such consideration and wotild, therefore, ask that we be permitted tc. withdvat from our corn .tt.ant to perform the v tructural engineering for the Faahtofn Institute of Tectu olugy project wh1ch you are doing for the Board of Education or the City of Now York. "Would you be kind enough to advise the proper authorities In connection with the Fashion In:;t:.tute of Tech- nology of your changed arrangements. "Very truly yours, "STROBEL AND SALZMAN "by Joseph Salzman." ;1r. Keatsn3. Hc't much of a fee u re St_ obel and Salzman going to ~etvunc! ..s:u c cont.?a %i . ,Mir. Strobel. If I recollactl.'r: r.:ght, it was just under $30,000. Mr. Keating. Ar.*_? ;, o ::.o Je tljat u? vulu.='4arl~.y .~ Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 348 order tha %oy:fg F griF a ?Wq&O tCJWRpj~( +18ii 0tfWM8C9RP2 being considered for government employment? Mr. Strobel. That is correct. The Chairman. You felt that there would ba an snconsistzr:= attitude if deYoung, Moskowitz and Rosenberg would set ? a contract from the General Services Admilistr3t =on because of your position as the Supe- .:ntendent of Public huild_ngs? Is that correct? Mr. Strobel. That 1., correct, sir. would ee incon3 ister,t with the rule3 that 1 yaad laid do,-in for Strobel and Salzman during my tenure -d' oV ~~ . The Cha = rman. Yuu felt there waa a ccnf2 rt o- interest dldn:t you? Mr. Strobel. That i3 correct. The Chairman. Why didn: t you feel that r.:ime cowl-ct of intere3t In the other cases where cor,tractE t e ~: gi'~en irahe-1 .w:ai read by tre f er~ortes?. ) Ur ~_-cb&' I tbirn" t at quf' t n, the Via: 1'c wc. tied, would Imply that ;tro..3e-1 cnd would mai-c:- arl ~:?: =.'3 e-'i?o,?'l to get su--h busI-n_ss, wh:.-i: =s nit the vase. l e po=>1ttcn I have ta::F-r: is that I could con3_der 11L unfair 1- a::J Salzman could not con 1nuF- to do bus S::ess with alts Mr . :?'.:,s letz . Even tnough t^ose oi~? :_ li euts t.av ?sr~ e_?zaicen to secu-^c: busines3 from Public Build _rit;:: = trv1 . Mr. Strobel. Right. Mr . .FIne . I assume that is t iecs up to the- answt-r ycu ~; ?.?r to Cong_?--Sm.an Kt-ating and hi3'o_~'^.:z n 11er, th~.t. hoc:: disqua ll';, yourself i f thcsc old c:.~sz ccaf: r?.; of y ,~:?.~ co *e In. Mr. trobe l . That 3s crrect. Mr. Fine. Bit If they c;1d obt ain busJ.ne3s 2'ro=.: ~r ebody- else - Mr . trobe 1 . It wouid not be for me . Ur. Pine. T:iat would not ycur firm f":?::'.~ t o ng business with them? Mr. 5 --robe--- That `s --i~; - Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 405 Approved For Release 2000/05/03 : CIA-RDP59-00882R0002 80(Q s Haan - Mr . JRaletz . I have no further ques ors, - The Chairman. Mr. Hill, would you cos0 forward. and Mr. Elliott, also? TESTIMONY OF JOHN E. HILL, DIRECTOR LN CO.M "-'-V's1 CE DIVI,: IOH, QEN 'HAL 5 .= V.LCES ADMINISTR: TIC?4 - Plezusoed Mr. Keating. I would like to ask you this. Mr. 31==1 . We were pursuing the quest lc n of h:;w long you had been :s& the department, andyou said since 1947, i94c- . Mr. Hill. Since 19 - I have been with GSA- Mr. Keating. Now, how my times (lid you confer with counsel, Mr. Maletz? Mr. Hill. Well, I caw mameta probably e1 'at o: r ten tithes, but it wasn't in the ratt.r`? c a conference erne :essart3 f. Mr. Keating. And we:-e theac documents that he i3 us=n here delivered by you here? Mr. Hill. In a sense they passed through my hands. May I say that we were instructed by the rick:'-nistvatora= office to give the ecra tttee complete ecc.:e: at _Oa . When Mr. '~'=etz would request files we would send po5:3tbiy to New yG::t or to J4r Strobel + s office or 5o1ae ether place within the Age.C and get them for Mr. . ?a1etz . Mr. Keating. And that was the instruOtlon5 Of YOU" superiors? 14r. Hill. That IS jrlkt, -;Ir. The Chairman. Did Mr. tr:-bo 1 al--o soy tl:nt you a)-,ould Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 406 cooperate with this committee? Mr. H111. As I understand It, yes, 31r- Mr. St: obel . Mr. chairman, it would be outside of my province to direct that particular Division to cooperate no jurisdiet ion over that orfi,.-~e . I ha %* e The re,airman. Didn't you turn over your persona 2 Ciles? Mr_ hill. I opened my files completely. Mr. Keating. Now, that Is very refreshing, Mr. 11111. 1 conducted an investigation where we didn%t have that kind of fine cooperation from the Executive Far anch. That is very fine. But I want to pursue this just a little more. Did you have instructions from your own superior that you have given, your immediate superior,-, the head of the CompllCnce :;ecrJ rwo, 'Filth reference to this irsvesttgati-~1rs? Mr_ Hiil_ May I ray he--; 1h's std^*_ed, sir? A 'ter !4.?. Strobel submitted his 113t of c 1 _ents the orrice of fo=p1tanCe and Security immediately tnit i ate an inquiry. Our initial purpos(- was merely to find out whether M. Strobel's clients had received any contracts with GSA -- I don't know where we would have gone from there -- just about the same time the committee Initiated its investigation. And then we were instructed -- Mr. Keating. Hot, did you know the committee was tntbting an Investigation? i'he C hair?man . T ~,c.~.- 4 ~~.:;; that I .Ottn ur1 s-z: tf-c: n Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 4 07 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mansure, that we wanted all information Mr. Keating. This is under oath. I would like hts testltacn, rather than the Chairman's. Mr. Hill I believe, if I recall The Chairman. It zeeu . : athcr arzcttslcus atvj sta'aid a that a member of the committee would voice :{b,;ect1oi&% tc a de4pa?teent cooperating with a con&t itutatl committee of Cosa,-;re::o. Mr. Keat ino . I wanted to see the*e The Chairman. It eeemp to me yo:_. que3tl: n wa 9.. ;:ugr!.ng the motives of thoce who gave us these dccusaent5. Mr. Kea t itr- . I wouldn't Impugning the mot 1.vea . The C~,.~.:iz?caf~rt _ I want to afford this gentlemen e % e _?y protection. We asked for the documents and we got the docintaat$. If we 8hculdn't have the docu:ierit3, that 1 But we are entitled to the dccume::t3, and we have g~ttc-n t:.e dccu- ments. And as a result of Mr. ?ansure, and I :r 1 1 :ay. ?. ery frankly, of Mr. Strobel, who cooperated to the ,t h : e, ,: ee with this committee, we got t:ie dr>.~:::r:3ents . And so I want to c, ter him every conceivable 4vS3 5,P for this. Mr. Elliott, will. you raise your right ham 1, plerase. Do you solemnly chear to tell the truth, the whole truth, and nothln, but the truth, so help you Cod? Mr. Elliott . Yea, 1.: . I wonder if I cc?uld be helpful Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 4O$ TESTIMONY OF MAXWELL H. ELLtC1PT, GENERAL COUNSEL, GENERAL SERVICES ADMINISTRATION The Chairman. What is your name? Mr. Elliott. Maxwell H. Elliott, General Counsel for the Genex?al Services Administration. I wonder if it would be helpful to the commI ttee If I ccul'd explain our general policy with reference to r making inrorc attOn available to Congressional corriittees. It is cur poll;-y, and we conceive this to be the policy prevrelling under the = xecuti?:e Orders, that we should make information readily available to an equal ^oovd1nate branch of the Gov -:-nment, to wt, the and as when requested, subject, of cou_?se, to ; a:%a1ttcattcn With respect to disclosure when they a:?. clan*31tl~id for s+ecu.-it reasons and subject to the r*-iattveiy rare ci '-cuua Lance wh-re- In the opinion of the Executive Branch disclosure t.-- a et-amtttee, would p^ejudice the public Interest. A question or that kind, if it ever comes up, we do not decide ourselves, we go to the Attorney Genera!. and he perhaps goes to the _ President . I wanted to clarity that. because cur position with respect to Furnishing information to this co lt1Le4 In this case is no different than it is In turn ish ing intormat 1Ci. to any other committee in any other c 9~es . Mr . Fine. I thought that Mr. Key t'. ng trying to find out just how the files were opened, w) ether or not there was a carte b"_anche investigation t1rst trtade by Mr. ftul t2 . and Mr. N sletz Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 409 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 plaked out the documents, and then Kr. Hill delivered theca in accordance with Instructions. Mr. Maxwell. I see, sir. I ween?t trying .to divert the particular facts, but I think it would be helpful if we explained our general policy. Mr. Keating. Is that correct, is that the way= wt was done? W. Elliott. How is that, sir? Mr. Keating. The way Mr. Fine has indicated. Mr. Elliott. Dlr. Keating, I can't testify as tc the detntlj of how it was handled. Mr. Keating. Mr. Hill, can you teatify a: to that? Mr. Hill. Yes, sir. Mr. t a letz would reque.t a certa # n Pile, acid I cud send for the file and make it available to him. Frequently I could not have reviewed the file at all. Mr. Keating. And you would turn over the whole ft re? Mr. Hill. Turn ovez? the complete file to 'Ml?. D`,a let2:, knowing that it was not a se curlty file or classified file. And Mr. Maletz would indicate the particular document, a copy of which he desired. Mr. Keating. Has that always been the practice in your department? Mr. Hill- I can't anawer that- It a 1wara has been the practice, but I am sure it ha: always been the policy. Mr. Keating. Tree pol 3c- ria:-:ing those riat'tera toll open Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 410 to let counsel for a Congressional cumastttee come in .and examine the rile and pick out anything he wants to? Mr. Hill. I don't recall any instances to the ;:oz teary, Mr. Keating. I don't know anything about Cni-ri -:ervtce:3. As I say, when -I was : ha lrman or the committee mac l ng ---s"h an investigation we were not allowed to see any flit-a, and were required to pinpoint exactly what documents we wanted, and then they would bc- examined and usually delivered to us. It is very refreshing to find that. at the orebent Cc>nGress- tonal committees are allowed to go -4nd loo' at the t1i. and pick out anything they want. The Ch::a irman . I wondered whether or not we could ;et the same cooperation as we got f i-om the- Cur -r-a 1 Se-wives r.dctni ts:3 - tion from the Department of Commerce. We have been enOeavorina; for month to get certain documents and records lox-o= Mr. : eeeks' Department, and we have an iron Curtain drasin aga inat us , asid we cant get a thing there. And that teas atymled the worts or this committee. I didn't hear the gentleman fresu New Yoric bemoaning the fact that we were treated that way. even dis- courteously, i+ the .::et:r-9't.3ra He retuaed to g1ve us any C: onc - tvab'a' infc'--c:at-ic'n W o. Keating. The gentleman was trying at one flute to got some documents -- I don't know the full story -- aoa documents of a private agency that happenvd to be physically 'lo:ate+c d*wri Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 411 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 in the office of the Secretary of Cocuaerce. And the secretary felt that he couldn't very well disclose that any more than the gentleman would want to disclose the files of his own Rents. The Chairman. I am very happy to note that the ,gentle aan from New York coreidera th.-- Business Advisory ount;t1 a private agency. I understood that the Secretary of Cc,=imerce . I have 23--'O vision too. But I think *x:e had better ;'-vi t b:z~17o~ 3 we ni_Yo the conclusions. I don't think anyone here in`.eiids to t')3 advoc:,t--, I think everyone intendo to judce fairly. The Chairman. I think t.zre -- t41- And then I received, throw;, h the I'.e:->1b1 i can lk tl,orsal C ,.: ,.:a.tttee, a biography baekGrrounc3 on St-rebel. But with that I d1d not receive The Chain-man. You stay the ?;epuL? ,carp 2L-:t1on2l Co. lttee ? Mr. Manoure. That is right. "::y I c .d not receive a recommendation from t:zcri. aeyic has :cc;n tali: :?-facet ao t i2rd person or out=SCer~ roc _-^r:c:=^~ =~ ~z-mob 3.. acs 3s Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 505 no one that ever cartie to nw attention i'ront the outside or the Government that recommended rec. Strobel to toe. The Chairman. Did you have any discussion with =4.r. Strobel prior to his appointment, regarding hiu Future relation- ship with the New York engineering Firm of Strobel and S^.1z:vtn? Mr. Mansure. Yes, sir. We discussed that, I thin., In considerable detail- I explained to him that thin waa a ' u - time job, there was a great responDibIlIty connected with it? and that he would have to devote his tirr~ to the orlcratIon. I did that because I realized tl t he held a very oriX.nent position in the engineering field, and that coz:1fg into the Govern ont was at a considerable sacrifice, as many, who have co=.5e Into tic Government have made. And I think It %rats coz plote1y urcicr. toed between us. The Chairman. Would you mind talkinf; a little louder, please. Mr. roan save . I am sorry. We discussed the matter in considerable detail, and I explained to ?1x. Strobel that this 1za , an impo= ~ajs ,==iti n with great responsibility, and that it mould be a ve 'y demafdint job, and full-time work. And I don't think there t:a _-nr - misunderstanding regarding t-:hat traz to be done. And thlz.,-. wags before April, when he took the pos=ition as consultant. The Chairman. Now, did Mr. Strobel toll you that he sould coati-nue his participaticn in the Ixartx crujilp prorits or Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 506 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Strobel and Salzman? Mr. i oua'e. Yen. It was agreed that he would participate In the profits of the company. I knots nothing about to partner- ship or the company, or how the protits were divided. But he was not to take part in the activities of the company. The Chai.z' ian. That in, he v.-ac not to take part in the activities, but' you understood he u-tan to pax-ticipate In the partnership protiti; ? Mr. T-1ansure. Well, he .-ras to hold hic lntereat In the partnership. The ChaJri-aan. Did he toil you that he would continue to seek clients, or pvocpcctive clients, of Strobel - -I-Ir. Mansuro. No, that was not a hart or the diseuazion at all. The Chairman. Did he tell you he mitst aollolt business from architechts for Strobel and Salzman? Mr. Mansure. No. ThexDe vans no aL;reomcnt to that cttoct whatcoover. The Chairman. Did he at any time lnfor:n you he intonded to prosecute a private claim for &t;?obel and before the Corps or EnC1neors ? Mr. tlancure. I d1dn ?t even tmo.r aflythinC about that until these hearinss commenced; I never heard of that before. The Chairman. ITotz, IUD. Strotol h=z to of :od that bctore assumini; his Government po=t hc? had ti7-.e cltutatlon elar3.tied with Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 you regarding his relationship with Strobel and Salzman; 1s 5.07 that correct? :?1r. Tlancure. That 1s correct. If there t? :ac to be any co:s#lict between anyone that ?,ou`d be doing busineos with the Public Builcln Z3 Sez"1ce or he was to take no part in It. , that car. be vezy easily explained. Dccau;e o ' 'E~i3e T1o:?i baclcgvovnd of Strobel and his #irr7, they !Jere es.iinently q? li#lec to Judge engineering, rlxnaz er avchitectura? oxft tion #irr.i that 'could be bidding on Govcrsirnent bu.:lnos::. a 1 ..c wanted that :nzovrledge. And I Pelt that Just becauze #i.rm, maybe because of thoir expcrie:ice or pro.m.i nonce, had done businecn with his farmer firm, they should not ba barred !'rors soliciting Government bucinecs. And _ r that cace, then, I or someone in the Denartr.!ont that had nothinL to do 'ri the the oper- atlon, would rule on %,rhether t,*ioy were qualif ed, and co #t:rth. The Chairman. Did you (i1L3cuan tr:tth arrybod i in the Attorney Genera? ' c Office the question of 1:r . St obel ' : po= sona1 arrangement t?r:Lth Strobel and Salzman? i?Iansuve. No . I vras under the impreosior. that ?ir. trobel's counsel had taken the matter up and had a dvisecl hisa. The Chairman. With whom? Mr. Mansuve. Well; that is that I d1d not ltnow, that ho .i ;;ccn z..?vice3 the t tzex-c r_o coni-3'_ct Ir h1z act. vitieo. Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 You nee, lup unt. pr v Ci or I evf se"A l 603 QA-I Fv? 8 0 jfflfft 5e oromn a tion or their partnership, or the activities of the firm other than their buaines3 relationships. The Chairman. Did ?1r. Strobel tell you that tiie utter had been cleared with !?lr. ownall, the Attorney Ceneral ? Mr. r!ansure. No, there was no rienticn of that, He 5a:Ld that It had been c? eared, but no idcni:-? "'ication, and -ownall I s name never camo into the cciscuc33.on at all, the ttornc.y General. The Chairman. Did you take up the r. l;te:- of 12 r. Strobel with the General Services Aci: ini stra tlon lc,al staff'; Mr. !4ansure : Yen, I did. The Chairman. And will you tell us about that? - Mr. Tiansure . 1!ell, v we have a conflict or Interest state m ont which we all slen, or anyono that c o_ics from outside the Government Into the Govern:.-v--nt. And I discovored that in -- I want to get these dates correct -- that In Dceem bcr, 1954, that conflict of interest staterient had been =fined condition- ally, or with a reservation. So I aakod our ConplIanco Depaz-tziont to check into it; at the carne time I said that we should iZ~=~?e a lint of their clients. Now, the reason for that was ail Co ciraplo. ; e felt that we could be he _~_ u._i If via- had that 1 l::t . It was not in a critloc 1 vein that v.o asked for t1~1t: t, :.ut we felt that our buclnesa beinc placed all over the UnItcc! Stator, that is, the Government business, that It would be vary :~cs::ible for sc::embody to bid on Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 509 a job unbeknown to the Coanaitis_=over, which would be handled r:1thin one or our xeglons, that: miiht aon time gauge a source of embarrasannent. There was soma micundorutandint; rerci-ing the compiling of that 11st, and we did not have the list until last AuWuzt, P%uGu st of 1955. Mr. tdaletz. 11r. Ilan-oure, I think you said that Strobel sitied th?s code of ethics, ow otandardz coda, --)'n December 27, 1934? Mr. i?lansure. That its correct. T?Zz. f'laletz. Could you tc-11 use thy he dic.in't t-%,-~?r-_:a~...~ thE..t Y ,--...z hove an- obl._gation and you have a tru: ec:s: p. Ch=-tir az. You also believe, I ax urc, that in the eyes oz' the ciubl It c the p---"-onal conduct of a G.werr?ment employee becomes a part of the reputatIG.1 of -the Cove rnz==ent itae f, :is that correct? Mr. Mansure. I tir:.ll agree with that, and I thirst: partivular- ly in GSA, because :re come in C=intact with all Gcvera.o=zt age.r.ci ec as well as the public both. The Chairman. Do you aubacribe to the prinelple that Government employees in all their dealing= rust no Con_duet thet Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 512 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 selves as to permit no possible basis for eusploiou of Uny un- ethical business practices? Mr. Mansura. I do. But I think that, that baste or suspicion should be well rounded and-not gQnaral, because I am *% decd of more things than over existed. Pe opl a Say tint they :nave Ha.naure in their pocket, and have an In in G-3A. But If it '10 1%,=-m ed, yes. The Chairman. You would su'bcenibe to th, pr1netp1 e, Mould you not, that the obligation to protc. t rul 1y the Xn r/e= r`a:3ta" or the Government demands the avoidance cf c3 rcur. stances that %iould invite conflict betv:een Self- 1ntcren - and ir-t'-Cr1ty? Mr. Mansura. That to correct. The Chalvman. Now, these principle: are set forth in your Agency's Code of 'thi ca, and I think they are admit-able principles a Section 4 or the General Services Adm =n13trc tion Code of Ethic requires prior written approval before any employee cr_n engage in any outside business activlt~r. That 19 correct, 1: n't it'? Mr. Mansura. That t s '1 s _:t _ And we en1 or-co th`t very strictly. The Chairman. rid Mr. Strobel obtain written approval :rroca any General "?^ ~ _ cis s :Aml_nl strati! on off? elal to engage in private business activity? Mr. Nanouve. Well, not to my 1nlo1:1edge . But, Mr. Chals an, he wasn't supposed to be enaaCed in outside business activity. The Chaixin3rs. no was not cuppo^ed to have been? Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mr. Mansure. WO . 53.3 The Chairman. low, you may that you were unaware that Mr. Strobel did engage in outaido tuainess activity, In that correct-? Mr. Mansurc. t.'el l , I vioul do' t %:ar_t to pass judgment on that until I had a chance to review: the hearing' of this ccc2- mittee. I don't know whether he did or t:hethe r he dl! dn_ : t, but, of course our policy- vilthin GSA is not to eneago in outzide business activities except where specic.l pcrsnit;slon `-az been given, and then there is no conflict with the Govo n ont :.1 th?n Governmont. Mr. Maletz. ?Ir. Mansuvo, did you hoar the :e:itleaozy thia morning concerning Ferrenz and Taylor? Mr. Tdansure. I hoard a part of that- test! monyy, yes. I.Ir. . ?1aletz. And I take It that ycu '.%c ar thz.t &I-r- Strobel testified that he and Mr. 3ch:-t;crz did ao? i cit Fcrren : and Taylor-.7, Mr. Mansure. I hoard that mart of it, Mr. Maletz. fo:-r, vta !-ix-. Strobe1 Cuppo :e'.: to do th -- c It In comnllcance with your Cote of rth1c for .?ir. to engage in that activity? The Chairman. That type cf activity. Tor. Ma nsuro . of course, I don : t know .-:hat happened at the meeting, but ?f It was solic''_tation or busineza, no. M. Maletz . '.Mould you say that the sot icitatlon of by Mr. Strobel would constitute a violation of your Code of `;a . 3U ? Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 514 Mr. Mansura. Well, there would definitely be a conflict in a person's judgment, and ba ai ca11y there would be a contl l clt with our Code of Ethics. The Chairman. Ilow, 3ectIon t, of the G-nora1 S erv1eea Administration Code of Ethics regt:irc3 every employee, and irrespective of the position he occur^'.es, to zub It to his immediate superior a report of out3lde connections, 11at1ar all personal or financial rolatlonchips :hi ch ht- ha n or formerly had with anyone dolng bustne33 with the Gonvra1 -4er vica5 Administration, or which there '-s rca3 on to bel iov' night do * n r business with the General Servlcoa J dmin_i8trati on. aT t In correct, Isn't It? Mr. Mansure. That to right. The Chairman. And Section u al3o prohtb`.t: --v ry employee to take final action with respect to any attar in :?3._,c:z such relationship or connection 13 Involved until authoriza- tion is received from the G--neral Serv; cea P,dmini3tratton Offlct of Compliance, that is correct, 1 n't it? Mr. Mansura. That is correct, ;l :3, a! r. The Chairman. Trott, r?h:en Kr. : troba1 was First employed by the General Servic*" A3;,s1Lr1::t:-ation I take it he did not auboit a report of b+ts cnat3id e co^~:~ coons listing all financ'! al relationships. And do you concld;,-r fallur.c to do so a second violation of the Coda of Ethics of your ACancy? Mr. ,'?ianex-a-c. Mr. Chairman, I don't lcnotr what you mean by all Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 of his out sgroy`1S91e ~~~Q~~Bj,9-0~$QIk~~00~00A11-5~n = t o over, any holdings that Mr. Strobel had; we discussed the part. The Chairman. Did he Curnl sh a list of all his tinancl =1 elati onships? Mr. Mansure. T?o, t:e did not go into that. The Chairman- When he c_ s sux ed his job? 1?Ir. 1.ansure. '.e did not Co into that, just the rli.:ct:=- =oxz pertaining to his principal ounce of income. The Chairman. But he did not subml c its -i na- r_c a? shins in Coto to tr=o depc.?'t:7: ;:1t 5:~ ,n 1-z ~.3Sei:aE'ES =3; w~da=t- 3= ?oll, I cjon' t x::30:: ::hE L ?Z~: r ~i~ Z: 3a Ze MY*. ~.1ansure. :l Division has that or not, r r..,..`2c n' t ::ant -o -them, it ?.:ould be submitted to whet if ::e _;.avc The Chairman. When a vio? aticn of th,3 Ccclr- of F1 to your attention that action do you take? Mr. 1?lansure . Well, if the--a is a Viol atic3$_, of cou3':~' we can't keep the person in Govornm. ent employment. But ::e have to he ve grounds and justification for the violatior_. . The Chairman. Did you take any action with reeferea:ce to your lniowiodge of Er. Strobel : s possible outside activities? Mr. Mansure. I beg your pardon? The Chairman. Did you take any action with reteren.ce to Mr. Strobel in that regard? Mr. r.1ansurc'. W-111, tY-_ _ s it e act's s=i?-ie?^, 1 .. r e- *,a :'are Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 have juatA d?J s~ ~Q 0~3~ 1~4-RC P5 Q tO~~ 388Q~1c~ita? iry oy previous statement, that if it J a wilful violation -- of acurse, if it is something that has happened that ..a not deliberate, or uhera the individual did not realize the zituat l on, that other statement I made won 1d be a little too F;l-neal, because our Code of Ethics covers ever-y body ' in GS % . The Chairman. i-'ell, he m{ ght not have beets vtlf-il, might have been with knowledge. bu-0 1t Mr. Mansure. troll, I %;ant to qual toy t mat b carpi 'tte have some people that we permit to drive a taxicab, oir- oe? ~t sil= - -But I just want to qualify thatf s-*Zatemcnt, bac4.uae it covers all of our people now. tl The Chairman. Now, turn t o the batter of thin ax~ased new $k6 million CIA building. You have had some c:_par11cnc with that, have you not? Mr. Mansure. Yes, I have. The Chairmen. And you would Say, vro:-l*.3 ;,-cu :t, ~ha that is a very substantial job, and as I think has L ~an inc:icated by statements by you in conversation z'ith Strobel, t2:at that would be deemed an architectural plum, : z. that correct. Mr. Mansura. Well, we feel it would be. That is a very substantial construction. The Chairman. Ant for ono z-eason_, b::,c_,u::r ts:F3 architectural fee will come to s came =1:i in th9 nc Chboh_ o< of $2 c 1 lllon, 1s that correct? Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 51 i- Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Mr. Maneure. 2 don't knot: what the roe would Cc=* to . But it would be a substantlal roe. The Chairman. Nona, the tosti?ony baforo our oowoltteo indicates that Mr. Strobal, as Commissioner of Public Buildinf;s participated In preparing a list for the CIA of eo-c.l.led out-- standing architects for the CIA job. Are you famlllar with that 1i:zt ? Mr. Mansure. Tio, I am noir Familiar i,-1th rho 3 { st, but I ltinotr or the list. But 1 would 1 ike to cor_:%act that. I bel Cleve that the list was prepared by -;he atai'f and not by Jr. "wtrAbel personally. The Chairman- Well, he t..stii'leu this morning that La parts c; pated In the preparation of It. Mr. Man3ure. ?-Toll, ho probably did. The Chairman. now, the testimony a1:ao indlcatos that- ththe list which Mr. Strobel partic1pz tcd in preparing comprise: some 14 architectural firms. Was I ; ever brouj;ht '::o your tterrt1O:n that these 14 names Mr. Manse e _ Not the ape -_1fic list, but ue have di :chased that, because I have been In o_i these negotiations ever since the beginning, there has been some oloundt:rstant in,g reear inl the construction on It. The Chairman. well, did you }mow that 14 of tho3c firms I withdraw that. Do you hncw -- and I t o3tit.J:?t,3 3e w;2c_-2 z :-d it Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 515 was repeated this morning -- that four of the firms on that list were at the very time the list s:ac ziont to the CIA active olienta of Strobel ' a private firm? Mr. Mansura. No. The Chairman. Was that brought to your a2tontlon? Mr. Mansure. No, I did not !:no-.s that. But I eti 11 feel that even if I had knozm of tha-: t1nay zhouldn' :. have been k--pt off the 11st if they were qualified.%nd that %,a ,ouid hz ve done In a case like that ia, when it aurae to my attention, w?--,en t:e time came for active consideration, V%u C7omia: ioner would not take any part In the do cl aion on the Sole ct? on of the arch1teof or the engineer. The Chair n. rTc z, th3 teiit moues Ia also clear that- t;wa additional firma on the fiat were old eliento of :iv. Ctrobel' a fir T-,ere you aware or that? !1r. Manoure. No, I was not. The Chairman. The tont'Imony is also clear to the etrect, that an additional tiro firms, the ones troei whom Mr. Strobel' a Firm had tried in some c:sanner to Cet busin+ess3 " n t*' pz st, thus making eight fins out of III with s:hi eh M. Strobel had bu$ir ocs rolationshipa -- was that called to your attention? Mr. Mansure. No, It r:acn: t called to ,my attent! on. But I believe that there is an ancirc? to that. We haven't COV20 to the point of neGotiatlon yet. nd I could definitely nay that if we came to a point of n: ot3 a .ion It z.ould to called to ray Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 attention Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 The Chairman. By whom? Mr. Mansure. By the Commissioner, or by aom? member of h.13 Starr. Mr. Maletz. I'?'r.i?lansurc, at tiiat particular tiazo --- and that ,-;ay the =first part of Au u3L, ?955 -- Mr. Strobel lac Sao . =at e available to GSA a lint o1? the c1 lent,-- of Strobel a.r_c a;:.1=a.:~'., 1:n1 that correct': ,sir . F?Ian3ure. That 1 ~?~ ` ^ t . .: e got t ha t 1-1-3t on !?ir . ?Ialetz . AuguDt 30, 195577 Mx-. 'L?iansua:-e August 0 tl , that J s cor 'oc c. The Chaixman. T:otr, dlci lr. Strobe2. 1 nTo:m-i you private business relation3hip--with the fir' 3 he v:as ~? :oc- ~:=rc - Ing for Government bucine3^, c;id he inforc! -you? Mr. !?Iansure. 1?'o hadn't 61 c cu s 3 eci i t . EL3 t did he recommend any of these final, they r:ore just on the 113z; for consideration. lie still 3.::.r_' t recommend.-r anyone on .he jo-- The Chairman. Mrs. Mansuro The Chairman. Mr. 1'?Ian3ure . The Cha"~rnar_. Mx,. 2?lam ure . The Chairman. (Du ?4r. That ::a a 11 st that -.:as sent t a Yes. nd you c-ra _.:)t i::;.'ox ed by Iir. Strobel i No, t: e d :i T? ,: '' r'u 3 # that. I bag you l- pardon? we did no4l di scusc that, no. Now., In v"; CS?r of the testimony I have cit**d, ~t?r'ohc'1 ' `3 o: f4 c ~:.~ l'' :SG:t f_'1 thi Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 520 proper or gelgj 21W/Q?/Q3 aClOf4W&%"WR&Q02@(SOQ@ to or 1tbics? Mr. Mansure. Well, you are epeaking aboue the oonduct regarding this list or firms? The Chairman. 111s participation in the preparation of this 113t, and the submission of It to the CIA where these firms had had business relationships with him, or intended bust .eaa relatlon- ships, or were having relations with him at the very tine. Mr. Mansure . Well, I %.,Ycxtld :-:ant to defer any decision on. my part to the outcome of the h: arinCs of the committee and the judgment of the conmml ttoe mombei-e, because in t1-_e first place I don't have any background on whether any influence s:as used or not, it would be a question of whether thoro was ir-Muence involved In It_ Just because the firm -- The Chairman. I didn't mean to inwerrupt you. Mr. Mansure . I say, ju=t becauso the firs happened to be a client either In the past, o= was at present cn the list, Nr. Strobel would not be in a pos! tton to make th finial on tht Firm. The Chairman. Aside from the final decision, do you think It was proper morally for Strobel to inolud _ t_iowc names on the list presented to the C_ .chore he aersonall r p^ rti eipated In some way in preparing tlmt list? Mr. tlansure. I don't want to avoid the answer to your question, but I would hate very much to out theso firms of high Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 standing in a position The Chairman. No, not these time, no, there is notb.ing against these firms. And I don't want to triply that. ':3 3 it proper or improper for Mr. Strobel in the pr-eparation of this list to put these firma on th$t 11st, or even to participate _n the orocOssing of pu-;tines -Ur:ese narsc)rs o - ? ;.Ir. Mansure . 'Jell, with L h current The Cha lrcian. !?'it'nout d1--closing It. ZO you. Mr. h1an3urO. with the currznt dcve to-~mcnt3 I feel that '.??sz.t should havo been done was, the matter Should have been called my attention, and then lot me :-evlow the qualif1Catlon3 of the firms and put them on the 113t or not. The Chairman. But he did not do that"? Mr. Mansure. No. And I think the reason for that pz-rt? 3 was due to the fact that it ~?:a:~ still In the rogotiatlon : t3ce, because GSA at pre sent J L!3 not carryinG; on the pvo ;.ram for CIA. they are handling that themselves. The Chaim-man- Put It In she negra tiVe . d--s 11L p-'open 3'c:- nim not to have called those facts to your attention? Mr. Mansure. Well, I thinnkk that probably the reason by didn? ti. do It was because, as I say, it ~?: =s sty! 11 in the ncgot?i='-- tion stage. I want to answer It this way. T's.ore 1:!; a feeling within GSA that we are not going to handle the CIA project. The Chairman. Now, your an3:JOr In not q?.iite responsive. to hziv&i disclvr:ed tl_c Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 522 information to you In the preparation of that list in which he participated? Mr. Mansure. Yoe, I would like to have had the infor atton disclosed to me. The Chairman. You would have liked to have hid it, but do you think it was Improper for hici not to havt!- d 1aclczed It to you? Mr. rlansure. Well, I acs trying to ana,--oz 3- aun qv:-is-ation because I think that the reaaon for It not doz=e is because we were not at the point of docl eior . I believe 1t Would be dIr clcaed to me ahon :?:e Came to the T o: nt of u;.* cting architects and engineora. The Chairman. He Should have disclosed It t7 Joy:? Mr. Ma assure. when it cacao to the point or dectslon, yen. The Chairman. Should he have d i a cl o3ed it to you %-:hen the lint was submitted to the CIA? Mr. Mansura- what I am trying to oay In ay razz.:.-~=- M=='~ I have a s3Lneefr33 t' 'e1ing that the x'c sozi the =ab:o ' :a&a nta.t d srue:.ed .tth rse was becau a we 1~.:--v4 a pretty heavy workload and were riot in, to the point beyond the atage on any of these firma. There were come firYas that ccnaidercd for It, but they were not satisfactory to CIA. Mr. Maletz. 4r. was 'mot In C (aplianco ~c! .h your Code of Ethics for Mr. trobo1 to have part:Iclpated in preparl.ug Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 a 11st for submission to the CI?% wit thout notifying you that eight Approved For Release 2000/05/03 : CIA-RDP59-00882R000200380001-5 of the 14 fires were ones .r th wtii eh Strobel and Ea1z z.:.n had private business relation.nhipz? !.!r. Mansura, Veil, T_ :~o _r1d ham to ask for a lei-.s3 opinion on that. Mr. Elliott, I dcn't '-rjo:: fr,_r ot_r Coda of sehethc'r It .-could be or no' U. Mr. Elliott as I tol'! you T would pref'e: tQ de: cz- r.TI 2 1 e~ lr_i~:z L fc~e.!