THE THIRD APPARATUS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000300150039-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: November 11, 2016
• Document Release Date: October 26, 1998
• Sequence Number: 39
• Publication Date: March 13, 1964
• Content Type: OPEN

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250 WEST 57th STREET, NEW YORK 19, N. Y.
ESTABLISHED 1947
FACTS TO COMBAT COMMUNISM AND THOSE WHO AID ITS CAUSE
rj ,R 3 1964
CPYRGHT
THE THIRD APPARATUS
March 13, 1964
Vol. 18, No. 6
One after another, Communist espionage officials fleeing to sanctuary
in the free world have brought out word of the existence of a spy ring so
deeply embedded under official cover.in Washington as to defy exposure.
The existence of two rings has been known.for some time.. But of the
third there have been only fleeting glimpses, such as afforded by Hede Massing,
an apparatchik (Russian for a member of a spy apparatus), in testimony before
the Senate Internal Subcommittee in May 1952.
A recruiter for the Soviet Intelligence network, Mrs. Massing was di-
rected to Noel Field who was employed in the western section of the State
Department. She found him a willing traitor and was bringing him.right along
into the conspiracy when suddenly she found that Alger Hiss was after him
for the Bvkov-Hiss apparatus. She and Hiss got into a polite hassle over
this new talent and their Soviet superiors took , Field, and placed him in an
apparatus. unknown to her.
Later Field was kidnaped and taken to oblivion behind the iron curtain,
with his whole family; and the logical excuse would have been to prevent him
from purging his conscience by making disclosures about this third spy ring.
Until recently, statements made by defecting spy masters have been
suppressed as containing unsubstantiated accusations against key careerists
in Washington.
But now. has come an official of the Soviet Secret Police (KGB) named
Michael Goleniewski with a story that has leaked through official efforts to
dam it up behind a'dike of silence and secrecy.
The apparatus exposed by Goleniewski has infiltrated every,federal
agency except the FBI,. according.to latest reports,
His is a disclosure hard to suppress.
19 MAR
5G6A
Counterattack has good reason to.believe that his revelations, as well
as other revelations breaking through the barriers, have come to the personal
attention of President Johnson.
Mr. Johnson is President by grace of God, not by permission of the Lib-
eral-Socialist-Communist. coalition which.has presumed.for more than thirty
years, to have the.White House on the. block and there is.no_reason why he
.. 05 kl by American -Aitor.
Registered in the United States Patent Office
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Counters ac - 42
shouldn't cleanse the Administration.
He might even decide to let the nation's justice take its course; and
to restore its independence and integrity. This would be a reversal, to be
sure.
Up to now, disloyal employes have been kept in positions of trust while
security officers have been punished in the name of the nation for trying to
protect it from them.
Not only that.
Two of the nation's great trusts -- The Rockefeller Foundation, once
headed by Secretary Dean Rusk, and the Carnegie Endowment for International
Peace, once headed by Alger Hiss -- have been used to further the conspiracy
with donations to such fronts as the Institute of Pacific Relations, found
by the Senate Internal Security Subcommittee to have been under the control
of a hard core of officials and staff members who were either Communists or
pro-Communists.
Another of the nation's great trusts -- The Ford Foundation -- financed
a hostile survey into the security programs through which the Federal govern-
ment has tried half-heartedly to compel its employes to obey the laws against
disloyalty and treachery.
The survey was reported in 1955 in a volume called Case Studies in Per-
sonnel Security by Adam Yarmolinsky, former law clerk for Associate Supreme
Court Justice Stanley Reed, a character witness for Alger Hiss at his trial.
Yarmolinsky went on to become Special Assistant to Robert McNamara and
Deputy Secretary of Defense.
Yarmolinsky has a direct telephone line to the White House. He is not a
protege of McNamara. McNamara is a protege of his. Yarmolinsky had much to
do with bringing McNamara to Washington to become Secretary of Defense.
A man who could direct a survey which helped to undermine the internal
security of the nation and then have a say in naming its Secretary of De-
fense quite naturally would come in for some public and private speculation.
In the course of inquiries Yarmolinsky was reported as having been on
the editorial board of a pro-Communist student paper at Harvard and as hav-
ing attended some meetings of the Young Communist League.
In a statement appearing in the Washington Star of April 5, 1962, Yarmo-
linsky admitted attending "a couple of meetings of the Young Communist League."
He declared that he did this against the advice of his parents.
By introducing the subject to his parents, Yarmolinsky opened the door
for a look at them.
His father is Avraham Yarmolinsky, who signed a statement carried in
the Now York Times on May 19, 1930, protesting native fears of the communist
conspiracy as constituting a "Red scare." The advertisement was sponsored by
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Counterattack '
-43-
the John Reed Clubs.
March 13, 1964
Avraham was a member of the Board of Directors of the American Russian
Institute, described by the Senate subcommittee as a Communist controlled
auxiliary of the Institute of Pacific Relations.
Adam Yarmolinsky's mother is Babette Deutsch, who writes poetry and
with her husband, reportedly translates the works of Soviet authors from
Russian to English for sale in the United States through International Pub-
lishers, cited by the House committee as an official facility of the Com-
munist conspiracy.
Also with her husband, she was active in the John Reed clubs, units of
the Communist revolution which came nearer than generally believed to taking
over the United States in the early days of the Roosevelt Administration.
Babette Deutsch also has been identified with these organizations all
cited by the House Committee:
Citizens Committee for Harry Bridges
Writers and Artists Committee for Medical Aid to Spain
Soviet Russia Today
Less than her husband, Miss Deutsch, seems likely to have admonished her
son against attending meetings of the Young Communist League.
Secretary McNamara, once described by a senator in Fortune Magazine as
being surrounded by a large question mark, insists that Yarmolinsky's record
is "one of strong and active anti-Communism."
The Yarmolinsky-Ford survey mentioned no names; to have done so would
have defeated its purpose. It was made public through a front called The
Bureau of National Affairs. Of the fifty cases reported upon twenty were
discharged for cause.
Yet Robert Hutchins, in his first report as President of the Foundation,
was able on August'21, 1955, today:
" ..the evidence offered to show that a man is a danger
to American institutions has often been farcically remote
...continuous propaganda and social pressure...has ten-
ded to suppress conscientious non-conformity."
This pontifical appraisal by a man aspiring to be considered one of the
great liberal minds of his day invites rebuttal by anyone who claims the
right of non-conformity with it.
Just how ruthlessly efficient have been the security measures taken by
the Federal government to prevent its employes from serving a menacing enemy?
In the so-called "Merger of 1945", about 1,300 employes of wartime agen-
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ties were transferred enmasse to the State Department. The transfer was un-
der the guise of an economy measure and the Bureau of the Budget was chosen
to stand sponsor for it.
The wartime agencies had been loaded with Communists and pro-Communists.
An insight into how this was contrived came out in the Senate Internal Sub-
committee hearing into the Institute of Pacific Relations.
Owen Lattimore, personal representative of President Roosevelt, was re-
vealed in the record,of.those.hearingsas having written a letter to Joseph
Barnes, an official of the Office of War Information, urging that the agency
hire personnel from the New China Daily News, identified as a Communist
organ.
Both Lattimore and Barnes were described in the testimony as Communists;
both denied the charge.. Barnes, who. was with the Institute of Pacific Rela-
tions from 1931 to 1934,. now is an editor at Simon and Schuster, New York
City publishers. The letter is cited here as an indication of how wartime
agencies used human contacts for the transmission of suspicious employes.
The suspects in this mass transfer were made the beneficiaries of spe-
cial procedures designed to protect them in their non-conformity.
They gave each other as references.
Edward Fitzgerald's testimony before the subcommittee in 1953 opened
an obstructed view of this. Fitzgerald qualified himself by invoking the
Fifth Amendment to avoid telling under oath whether he had been a Communist
spy while enjoying a career of special preferment in the government he was
dedicated to destroy. He used the same dodge to avoid saying whether he had
given Irving Kaplan and George_Perazich, birds o_f the same feather, as
references.
William Ullmann, described as a member of the Silvermaster spy cell,
used the leader of the group, Nathan. Gregory Silvermaster, as a reference in
his application for officer's training in the army he was out to help under-
mine. The use of the influence of Silvermaster,. who refused to discuss his
espionage activities under oath, gave Ullmann advantage'over thousands of
loyal candidates who thought there was no such thing as pull in the army.
They covered up for each other.
When Silvermaster was assigned to the Board of Economic Warfare in 1942,
Naval Intelligence...ran a check on him and made a derogatory report to the
Board urging that confidential information be withheld from,him.
The report was passed along to Silvermaster by William T. Stone, assis-
tant administrator of.the Board. Silvermaster went-to the White House and
talked wi.th,Laughlin Currie, a Roosevelt aide, later identified as a member
of the Silvermaster ring.
.. Curie.called Secretary. of. War Robert P. Patterson and, in the name of
President Roosevelt,. intervened.. Patterson had no alternative but to order
Silvermaster cleared of all suspicion.
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Counterattack - 45 - March 13, 1964
against him by Naval Intelligence and handed his self-exonerating report to
Stone.
Stone himself came under the scrutiny of the State Department's Banner-
man Security Screening Board in 1946. The Board found that he had been a
member of the editorial board of Amerasia, a Communist publication used as a
cover for espionage against the United States. The Board also found that
Stone recommended for a commission in the Military Service Frederick Vander-
bilt Field, identified as a Communist agent operating inside the Institute
for Pacific Relations.
Stone was cleared the following year. He was cleared again in January
1952. But a month later, the Civil Service Loyalty Review Board took the case
:out of State Department security channels and in an upsetting decision. held
the case had been mishandled and announced that it was being reopened, this
time on its merits. Thereupon Stone resigned.
They struck back at security agents who tried to protect the nation
against their confederates.
The Bannerman Board soon was abolished. Senator McCarthy charged this
was done in order to get rid of Robert Bannerman, its chairman.
When Red agents were publicly exposed, their confederates publicly de-
fended them by smearing the exposer.
When Harry Dexter White, one of the most powerful of the Soviet agents,
died in 1948 while under active investigation, Virginius Frank Coe issued a
statement saying the nation had lost a great man. The statement went on:
"Harry White did not die -- he was killed. He was killed
slowly and cruelly by insidious slander, ceaseless in-
vestigation, and finally, when his strength was gone, by
public scandal."
Coe had been associated with White in more ways than he cared to admit
under oath. He invoked the Fifth amendment nine times when he appeared be-
fore the Senate subcommittee in November 1952. He refused to say who had
brought him into the employment of the United States, who promoted him past
loyal Americans in Federal service and, finally, whether he had been a spy
for the Soviet Union.
Harry Dexter White was described by Attorney General Herbert Brownell
in a statement on November 6, 1953, as a Russian spy who "smuggled secret
documents to Russian agents for transmission to Moscow."
A report prepared by the Federal Bureau of Investigation in 1945 de-
scribed in some detail how White obtained a secretary, Sonia Gold, who was
not a Fifth amendment case, incidentally. She denied all charges in 1948
under oath.
The report stated:
"Some time in the Summer or Fall of 1943, the Silver-
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March 13, 1964
masters (Nathan Gregory and his wife, Helen) believed it
desirable to have someone placed as secretary to Harry
Dexter White in order to facilitate the obtaining of in-
formation from his office for delivery to Soviet espion-
age agents. As a result of these deliberations, Mrs.
Silvermaster went to one of the Communist functionaries
in Washington and from this source obtained the name of
Sonia Gold. Eventually, Mrs. Gold, through arrangements
with White, obtained a position in the Treasury Depart-
ment. As a result of this employment, Mrs. Gold obtained
documents from White's office which she copied and made
her notes available to Mrs. Silvermaster."
. White had become so busy acquiring personal power through inter-depart-
mental committee membership that he had insufficient time to carry out es-
pionage assignments.
He was given this power in a memorandum, signed February 25, 1943, by
Secretary Morgenthau, which stated:
"Effective this date,-I would like you to take supervision
over and assume full responsibility for Treasury's par-
ticipation in all economic and financial matters... in con-
nection with the operations of the Army and Navy and the
civilian affairs in the foreign areas in which our Armed
Forces are operating or are likely to operate. This will,
of course, include, general liaison with the State Depart-
ment, Army and Navy, and other departments or agencies and
s representatives of foreign governments on these matters."
Coe's defense of White was a forerunner of the defense of Alger Hiss,
even after his conviction, by Secretary of State Dean Acheson.
Presently employed by a New York City printing firm, Hiss is reported
as having made several recent trips abroad.
. It would hardly come as a surprise if it developed that these trips
were made for the State Department.
After all, Owen Lattimore made a semi-official trip to Outer Mongolia
in 1961 just before that Soviet possession was brought into the United Na-
tions with the support of the State Department.
Lattimore visited White at the Treasury three times in 1942 and called
even oftener on Lauchlin Currie at the administrative offices of the White
House.
The Senate subcommittee had this to say about Lattimore and his interest
in Outer Mongolia:
"A former counselor to the Soviet foreign office...testi-
fied he was present at a meeting in the Soviet Foreign
Office in 1936 or 1937 when a board of Commissars presi-
ded over by Litvinov passed a formal resolution putting
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Coun era ac -47- March 13, 1964
Lattimore in charge of a campaign to represent Outer Mon-
golia to the democratic world as a country entitled to
membership... in the League of Nations....
The report also says:
"The record shows that Owen Lattimore contended many times
that Outer Mongolia was a free and independent country...
Yet the record shows conclusively that Lattimore knew in
1936 Outer Mongolia was Soviet-controlled, and that he
repeatedly sought from Soviet authorities permission to
visit it..."
Lattimore wrote a book called "Ordeal by Slander" bewailing the treat-
ment he received as an accused man and the liberals joined with his old
confederates in trying to bring the nation weeping to its knees in con-
trition.
He may live yet to have some national honor bestowed upon him by the
President of the United States.
J. Robert Oppenheimer did.
As one of his official acts, President Johnson bestowed the Fermi
Award on Oppenheimer along with $50,000 in tax-free public funds ostensibly
for Oppenheimer's services to the nation as a nuclear scientist.
Accusations against Oppenhiemer were brought before the Personnel Secu-
rity Board of Atomic Energy Commission which made these findings in a report
handed down on May 27, 1954:
"The Board finds that during the period 1942-45, Dr. Han-
nah Peters, Bernadette Doyle, Steve Nelson, Jach Manley,
and Katrina Sandow made statements indicating that Dr.
Oppenheimer was then a member of the Communist Party; and
that the. other statements attributed to officials of the
Communist Party in this allegation were made by one or
more of them. The Board does not find on the basis of in-
formation available to it that such statements were made
by David Adelson and Paul Pinsky."
The Board also revealed that Oppenheimer was one of the first officials
in Federal service to contend that former membership in the Communist Party
was no reflection on an employees loyalty and trustworthiness.
Presumably Oppenheimer referred only to those who left the party with-
out breaking with its objectives. Certainly there is no ready place in
official Washington for those who turned on the conspiracy in angry dis-
illusionment.
The solicitude of the far left for its own kind has become way of
life in Washington.
Just before Bernon Mitchell and William Martin left the National Secu-
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March 13, 1964
rity Agency and fled to Russia with whatever secrets they had not already
transmitted, they called on an eccentric Ohio congressman to complain about
the way the United States was spying on Soviet Russia with U-2 reconnais-
sance planes.
They thought the congressman might expose these unfriendly intrusions
into the skies over the motherland. The congressman told them there wasn't
anything he could do about it.
But he didn't tell the National Security Agency that two of its em-
ployes were security risks. He must have felt that this would be taking
sides with the United States against some of his best friends.
The Department of Defense at first tried to suppress pertinent informa-
tion and the House committee had to resort to subpoenas duces tecum in order
to obtain the application forms of the pair.
When Sergeant Jack Dunlap committed suicide six months ago in the be-
lief that the Army was investigating his espionage activities at NSA where
he was stationed the Pentagon denied that he had stolen anything of value
to the enemy.
The Dunlap case proved once again that the security programs in Wash-
ington have been rendered useless by ridicule and tampering..
It seems the chief law enforcement officer of the United States, Attorney
Attorney General Robert Kennedy, may himself be soft on the subject of ex-
posing Communism spies in government.
If so he is following a directive of Walter Reuther of the Automobile
Workers and Americans for Democratic Action.
Reuther had the directive prepared for Kennedy early in 1961.
In it Reuther, who claimed great influence with thenew Administration,
cautioned the Attorney General against playing up subversion in the national
capital.
This, said Reuther, would give the right wing ammunition for use
against the Liberal-Socialist-Communist coalition.
For the purposes of diversion, Costa Nostra has been quite helpful.
Faithfully yours,
Sacbscrtptiox Rate: St4.00 per year, U.S.A. Community, Club, School and Bulk rates of 25 or more, upon request.
Pieaaa note' o..,rcanisatio~n~a~l affillation when making request..
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