only addressing against the Communists. There was no reflection on

Mr!^ Roosevelt whatever. i tvt ivyr „„,.

Senator Tydings. That is all right. Go ahead, Mr. Morgan.
Mr MoRG.N. Now, for purposes of clarification, Mr. Budenz, I shall
leave'this 1987 meeting for a time and pick up a matter which you
ef erred to briefly in vour statement there about documents bearing
certain initials during the years 1940 and 1941 As I r^ca 1 those
initials were "L" and "XL" and if I am ^oi^r^^t/«\|;!^Y;1t4^^^^^^^^
those were the— shall we say— code designations for jVIi. Lattimoie,
is that correct ? Is that your testimony ?

Mr Budenz. Yes, sir. , -, . -, 4.

Mr. Morgan. Now, can you amplify a little about what documents
these were? From what did they come, the documents you retei to^
Mr Budenz. These documents were at official proceedings ot the
Politburo. They used to get them out by the wholesale, that is to say,
Im St e?ery word spoken, the whole conspiracy was exposed m these
doci mients and they were sent to a maildrop in Chicago. When I was
n C^ caio a^editor of the Mid-West Daily Record thev were sent to
a nia d?op in Chicago and there given to Morris Childs, a leader of
he national committee. He then gave tlieiTi to the_ members o^ die
committee who were there, that is to say, William L. Palteison, Lee
Sxro, myself, and perhaps one or two others representing the
na ic^ml committe'e in Chicago. We read these documents for our
formation as to what was happen ng m the po itical bureau and foi
our guidance on party people, initials were put m, and m that con-
nection as I have said, Lattimore^s name m the discussions on the Far
F SraDDeared Is "L" or "XL." They used " Y" with your first initial
fiS othrtMngs like that with different other names. I remember-
well, I think perhaps I need not go into too wide an area of conyersa^
t ons which were unofficial in character, butj do know that this w.
the official report of the political bureau on this matter-I mean on all
matters, and it was very detailed. i i„„ ;..

Mr. Morgan. Are any of these documents, to your knowledge, m

^"^MrBuDENZ. Well, I would not know. The point of the matter is
Ave had strict instructions to destroy them all. , , , -

Mr Morgan. How do vou know, Mr. Budenz, that the character
"L" or "XL" was the designation for Mr. Lattimore ?



STATE DEPARTMEXT EMPLOYEE LOYALTY INVESTIGATIOX 517

Mr. BuDEXz. That Avas told me by Jack Stachel on one of my visits
to New York and, as a matter of fact, on several occasions.

Mr. Morgan. That was somethin*^ told to you; is that right?

Mr. BuDENz. That is right, but ]Mr. Stachel, who is the man in
charge of the conspiratorial apparatus of the party, in his contact
with the Communist International and the like.

Mr. MoRGAx. Now, let us go to the 1943 meeting to which you have
referred. This was a full meeting of the national committee; is that
coi-rect ?

Mr. BuDEXz. No, sir. This was a meeting of the Politburo, which
is very small in number.

Mr. Morgan. But it is called the national board; is that correct?

Mr. BuDENz. That is right, but, as a matter of fact, to this Polit-
buro meeting there came a number of other people. I mean, Tracten-
berg is not supposed to be a member of the Politburo for legal reasons
because he is connected with the International Library of Publishers
and he would be linked up legally, so he comes but he is not a member.
At this meeting — well, Earl Browder was present: I remember that;
and Stachel and Robert William Weiner. I remember Weiner because
he didn't always appear at these meetings. Perhaps I could remem-
ber others, but I remember them ; and also Frederick Vanderbilt Field.

Mr. 3I0RGAX. Now, from this meeting

Mr. BuDEXz. It may be at this meeting that Pliilip Jaffe was present.
He came to a few meetings through the years with Field, but it is
very difficult to place him because he played no part except a very
passive one in those meetings.

Mr. jNIorgan. Now, how did Mv. Lattimore's name figure in this
meeting ?

Mr. BuDENz. This had to do with the fact that Mr. Field reported,
as I understand it, that he had seen Mr. Lattimore. He may have
communicated with him, but to the best of my recollection and
memory — and it is very strong — ^is that he had seen him and that Mr.
Lattimore had said that the apparatus had reported that there was
a change of attitude toward Chiang Kai-sliek; that we were going to
be more hostile to Chiang Kai-shek. There was a discussion on the
matter in Avhich Browder did not seem surprised at this development
but stated that we must know exactly the emphasis because Browder
apparently had information that our emphasis was going to be on
the coalition government with the idea of strengthening the Commu-
nists, eventually to scuttle Chiang Kai-shek. So far as I remember it,
it was agreed that an article should be published in one of the articles
of the Pacific Institute of Relations along this line as a beginning,
and that article did appear through T. A. Bisson or Jaffe.

Now. the Far Eastern Institute, whom I represented here, which
attacks Nationalist China, as I recall — I haven't had a chance to read
this article; that is, I haven't been able to read it thoroughly — attacks
Nationalist China as feudal China, and Red China is proclaimed as
the real China.

Now the substance of that meeting was that Mr. Lattimore should
have direct contact with Mr. Field. Now, we had this in the case of
the Hitler-Stalin pact, so this is not something abnormal. In the
Hitler-Stalin pact period the Comnuuiists first came out for the lib-
eration of Poland, although the Red armies were beginning to invade
Poland, and they received very sliarj) instructions to change, so they



518 STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION

fhPn attacked the Polish leaders as betraying their people So the

was raised as to its empnasis, anu J^ reauested to ask

way, after this meeting That is, finally .^^^.;;;\^^^\'^2 '^i',, i,,ouoh

'°TheThin^i"fS"s'cond"m;/ed'chians Kai-sl>ek by implication. It
co^Wed1he'ap;:aser. in the Kuo,nint.,Jg Howe^r snbs^-^^^^
when the American press became ^™»^«'' .^^' ^°8°tt ^^^^^^
intpi-nreted and we received very specific instructions tnat ^e ""« '

:IJ f,iteS?:t;r,,ictnre o* .f .-^™. -«-«-; y - /^-JS
rtltm:?etTa ^rfP ^^i^^Vlo^rbrFreder-ici. Field; is that

^Mr^BuDENZ And Browder and Stachel; that i^- «i%«P<'rtJ'as
by Field, Stiie comments to IVIr. Lattimore, in an official way, were

%?;â–  Mo:;r" Rn;.'"Tl,ank you. That, is what I "-ted to know
We CO ne now to the last of the iiieetings. «>« rf^"4 f XtiveTo
tliat meeting was it again a report that was made to }0U relatne to

''m^'bTenz No That wa. not at a meeting. That wa. Mr
St'a'che/^oTam'^^down every day }^^::,^^^^S

;re:^,Tzrro7n:Ta,r :â„¢; theiT'dZment'L^^

o exmni. e them for the line at that moment and also â„¢>rj^^^" ,7,t
were forbidden to keep a list of these X^^W liad o , u tS
they miglit be *"ken out b>- someone^ T^^^^^^^^

rt?o,;rthir;'e^?o;i:'irw::i;tt?connert^

^Mr Mu^^AN. Now, going back. Mr. Budenz. ^V^ ^^^^^^^ ^
believe you have presently with publishers a book, is that collect.

Mr. BuDENZ. Yes, sir. ,„ u i.»

Mr. MoEG.AN. AVliat is the title of the boolv <

Mr. BuDENz. Men Without Faces.



STATE DEPARTMENT EMPLOYEE LOYaLTY INVESTIGATION 519

Mr. MoROAX. Aiirl who publishes it?

Mr. BuDExz. Harper c^ Bros.

Mr. Morgan. What theine have you developed in this book?

Mr. BuDExz. Well, the name suggests the theme. The name is not
arbitrary. It is because of the fact that we were forbidden to photo-
o-ra})!! most of the leaders of the Conmnmist Party — that is, Biddleman,
Tractenberg, or the secret heads of the Communist Party — we had a
rule we were forbidden to photograph them. That is why the name
of the book, because it indicates the Soviet fifth colunni in this coun-
try. The book exposes the Soviet fifth column in this country. I
know, because I am in it.

Mr. MoRGAx. Do you develop in this book this picture which you
are giving us today, this picture about the 1937 and the 1943 and the
1941 incidents?

Mr. BuDExz. Xo, sir; I do not.

Mr. MoRGAX. Do you refer to Mr. Lattimore in this book?

Mr. BuDExz. No, sir; I did not, and there is a specific reason, be-
cause if I were to refer to Mr. Lattimore I would be in the same pe-
culiar situation I was in the Wallace situation. In fact, the Wallace
situation was the cause of my not putting Mr. Lattimore in this book.
The only time that I put Mr. Lattimore in the book was to identify
Mr. John S. Service.

Mr. MoRGAx. What was that?

Mr. BuDEXz. Mr. John S. Service. Service. And because I made
a slight error of fact about Mr. Service, saying that he had advised
Mr. Wallace, I corrected that to say "advised Mr. Wallace in the Gov-
ernment with Owen J. Lattimore.*' That is being made because of
the error. Xow, the thing

Senator Tydixgs. Would you repeat that last sentence ?

JNIr. BuDEXz. I said Mr. Service had advised Mr. Wallace in the
Government with Mr. Lattimore. This I had in mind. Mr. Service
was really in China and INIr. Service was referred to in the Commu-
nist discussions as Mr. Lattimore's pupil, but the thing is I had no
information with regard to Mr. Service's political afliliations. There-
fore, in order to identify Mr. Service accurately, since I said he had
advised ^Nlr. Wallace, and he wasn't an adviser technically to Mr. Wal-
lace, I had in mind that he was in China when the Wallace mission
Avas, and I quoted Mr. Lattimore's name. However, in another book
which I am writing Mr. Lattimore is very prominent.

Mr. MoRGAX. Mr. Biidenz. when was the first time that you ever, to
any oflicial agency of this Government, mentioned the name of Owen
Lattimore as having any connections of the kind which you are pre-
senting to us today?

Mr. BuDEXz. I didn't catch the question. Counsel.

Mr. MoRGAx. The question is. When was the first time that you
ever mentioned to a representative of this Government, whether of
one branch or the other, anything concerning Mr. Owen Lattimore in
the same connection with which you are speaking about him today ?

Mr. BuDEXz. AVell, I didn't disclose any of these events to the Fed-
eral Bureau of Investigation until very recently.

Senator Tydixgs. May I ask how recently, if I do not interrupt
counsel i

Mr. BuDEXz. Well, I think, Senator, it was a couple of days after
this committee had gone to the FBI.

68970 — 50— pt. 1 34



520 STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION

Senator Tydings. It was after our committee had been given the
suimnary of the file, which you learned about through the press,
that vou went down to the FBI? . ^-^yj , ,

Mr^BuDENZ. That is right I h%^ that practice with the W

when there was a concentrated case I «P«^V^7^^:f, ^^Vi'ti.e practice
it not only in this case but in other cases, bo that was the practice. ^

Senator Tydings. All right. . , i •, H..f thp first time

Mr Morgan. That means, as I understand it, that the tirst time
tha^ you ga?eTnformation to'an agency of the Government^concernmg
Mr. Lattfmore was in March of this year; is that correct

Mr BuDENz. Well, that is my impression. That is my lemem
brance, at least in such detail, and the reason is-I would like to ex^
nan that The reason is because that has been my practice. That
fs to say in regard to even the 11 Communist leaders, while I gave
generaHnformltion on them, the concentrated information was not

^"Mr'£GAN' Now, if I may ask the question, how soon after you
left he pai'y in October of 1/45 did you have your hrst contact with
an officiJl agent of the Government concerning Communist matters^
Mr BuDENz Well, for G months I asked to be relieved of that mat-
ter mtiricouircolect myself, but finally, after 6 months the FBI
eiiisentatives came to my name, and for 3 days, and partly nights,
r a'?^^ '^^^^^^^^^ ^"^^'^^t of information, especially upon

events sucl as Miss Elizabeth Bentley and Goulas, and things of that
Xaracroif which I was questioned I -sponc^ed to ques^^^^^^^

Mr. Morgan. I presume, then, that would be early m IJlb, is that
correct ?

S S=n. K,^mTSlather from the testimony this morning,
MfBudenz, that Mr. Lattimore V^y^^^J^V^-^'^^^^-^-^-
ing this objective that you have referred to m ^^^l^tion China polic^e^^^
Mr BuiENz. That is what I state; yes sir S«meot these reports
I reieived while working with Frederick Vanderbilt Field, Bhilip
Jaffe and oTher Communists in the Institute of Pacific Kelations

Mr Morg N. Now, I should like to ask, that being true, why fi-om
earlv'in 1916^ ntil March of 1950, a period of 4 years, why during
all that period did you not call to the attention of some Government
aienJy-^md y^ manifestly were in contact vnth agents-somethmg
about this man that played this prominent role ^

Mr BuDENz. For the simple Aason that there are a number of o her
people that I have not been able to c^U to the attention of the U^^
eminent yet; that is to sav, I have been cooperating with the J^Bi
Txtens vefy, bnt largely in the case of prosecutions, and that has taken
a Lood b t of my Sme. In the time that we dealt together I have
IJ^o^^^llio^ltions of the FBI at ^-at lengtlu As a ma t.r ^^^^
fact that is one reason I was compiling this list of 400 concealed Com-
munistras if I may use the term, Senator, my last will and testament
r he United States on all I know of the Communist movement
because there are so many people whom I have not been able to identify
to the FBI with regard to their activities. , ,^^ ,

Senator TvmNGS. You are going to turn those 400 names over to

the FBI?

Mr. BuDENz. I am doing niat now seriatim.



STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION 521

Senator Tyoixgs. They are not necessarily employees of the Gov-
ernment?

Mr. BuDENZ. 1 wonld say,' Senator, that none of the people in this
list are employees of the Government. I have taken them up in the
public field first.

Senator Tydixgs. Yes. The reason I ask you that. I was interested
in one of the <j!:reat papei-s of America as being- in this 400. I take it
most of the 400 were not employees of the State Department, but we
are interested in communism all over the world. I am interested in
it, and I am very glad you are turning it over to the FBI, because it
is a very important thing to do, but I did not want the impression to
prevairthat it had anything to do with our investigation of the State
Department.

Mr. Bi^'DKXz. It has taken soriie time, because I have to b? careful
with each nanie, as to how I know them and the like. ^Sh' impression
is that I have already turned over to the FBI -200 of these names, and
am continuing to do so. and. incidentally, you are correct in your
interpretation.

Senator Tvdixos. Then the article that you purported to Avrite about
me was not correct ?

Mr. BiDEXz. Well, if I said that, it was incorrect.

Mr. MoKGAX. Continuing, Mr. Budenz, I have in my hand here a
photostatic copy of page 12 of the Daily Worker for Ai^ril 29, 1949.
Under the caption there on this page, under the caption "'Books,*' there
is what purports to be an analysis or an estimate of Mr. Lattimore's
book. Situation in Asia, and I am going to ask if the chairman Avill
permit that Mr. Budenz read that — it may be a little long — because
this is the analysis apparently made by the Daily Worker of this book
which has played such a part in oin- discussions here. If there is no
objection, I siiould like Mr. Budenz to read it.

Senator Tydixgs. I can see nothing wrong with it. It is from the
l)a})er that Mr. Budenz was the editor of. Mark it with an exhibit
number, however, so it can be identified. Will the stenographer make
sure to identify it?

(The document above referred to was thereupon marked for identi-
fication as exhibit 78.)

Senator Ty^dixgs. Go ahead.

Mr. BuDKXz. The date of this article was April 29, 1949. And I
hesitate to testify on things after I left the party because I am not
fully conversant. However, I will do the best I can, Senator, from
my be«;t knowledge.

Senator Tydixgs. Go ahead, sir. Read it carefully and slowly and
in your own way.

Mr. BuDEXz. "Situation in Asia criticizes United States Govern-
ment policy in Far East.""

I will rej)eat that. "'Situation in Asia criticizes United States Gov-
ernment policy in Far East."

Senator Tydixgs. That is the title of the book. Situation in Asia?

Ml'. BuDEXz. That is the title of the review of Mr. Lattimore's book.
Incidentally, I might say, so j^ou won't think this is a partisan issue,
that Professor Lattimore has severely criticized the administration
in the Nation — I can give you the address — in reviewing the AVhite
Paper, as ruthlessly imperialistic as a Republican.



522 STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION

Senator Tydings. You don't mean from that last remark that Mr.
Lattimore and the Republicans are in the same boat ?

Mr BuDENZ. No. No. I say he tries to put the admmistration m
the same boat as the Eepublicans. That was described by me by this
heading here, "Situation in Asia criticizes United States Government

policy in Far East." . -. ^ ^ • x

Now, this is by David Carpenter, a man whom I know, a Communist

whom I know.

Owen Lattimore's Situation in Asia is extremely critical of our Government'^
nolicies in that immense area of colonial and semicolonial peoples. He shows
Uiat our Government has done nothing but alienate the people's forces seeking

"'Samli^tJKriJ^t^'director of the Walter Hines Page School of Foreign
Relations at Johns Hopkins University, points out that our dependence on the
Kuomintang has served only to make the United States hated by the Chinese
oeople He contrasts, to our disadvantage, the reliance on the unpopular impe-
•ialistic agent Svngman Rhee and the maintenance of United States occupation
iioops miouth Korea with the ^vithdrawal of Soviet troops, and the establish-
merit of a native neoples government in North Korea.

Hefhowrcleam that the efforts by the United States Government to make
TTn-m a maior bastion against the Soviet Union must end m failure.

Lnino?e proposes that our Government in its alliances with dictatorial cor-
rupt antipeoile's forces in Asia-Lattimore proposes that our Government end
its alliances —
I misread that —

end its alliances with dictatorial, corrupt, antipeople's forces in Asia He
u?<'es that we stop intervention in the affairs of the col.uiial and semicolonial
^untries. He asks that we aid the peoples of Asia to ac-hieve national mde-
,e dence. All this is to the good as far as it goes. But La'^^'^^'■^?,•?f .^Z;
letelv off the beam in his efforts to explain the relationship of political and
socifa forces in Asia and their impact on world affairs, and as long as we fail
to recognize the realitv of these relations, so long will we be unable to help m the
•ichieveinent of those aims that Lattimore proposes. . , . , t „

In the tirst place, Lattimore argues that the colonial and semi-colomal peoples
struogling for national independence are developing a third force tliat seeks
t< remain equi-distant from American and Russian power. He refuses to ad-
mit that the struggle is completely an anti-imperialist struggle to drive out the
An eiican British, French, and Dutch who are subjecting the native peoples to
superexploitation for their raw materials and as markets for capitalistic

^''ua'ttimore admits that the Asiatic colonial and semicolonial peoples are look-
ing to the Soviet Union for examples of how oppressed peoples achieve mdepend-
ence and are turning away fr.nn the United States be.-ause of its imperialist
nnl But he makes tliis a contest of tactics which the United States can change

]>v adopting new methods. , . , , . ^ <.„ ^v,^

lattimoiv refuses to see that the reason the colonial people turned to the
Soviet Unbui f.n- their example is precisely because of the overthrow of capital-
l.<,m and the estalilishment of socialism in that country. As Stahn points out—

They always have to quote from Stalin. This is in quotes :
"It is i.reciselv because the national-colonial revolution took place in our
countrv under the leadership of the proletariat under the banner of nationism
that piriah nations, slave nations, have, for the first time m the history of man-
kind arisen to the position of nations which are really free and really equal,
f herebv setting a contagious example for the oppressed nations of the whole world.
••This means that the October revolution"— now, that is the Bolshevik revo-
lution in Russia, if I may interpret that— "'This means that the October revolu-
tion has ushered in a new era. the era of colonial revolutions which are being
conducted in the oppressed countries of the world in alliance with the proletariat
and under the leadership of the proletariat."



STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION 523

That closes Stalin's quotation.

The core of the leadership in the cokmial struggle against iiuijerialisni and
the guaranty of the at-liievement of national independence lies in the growth and
the development of the native Conununist parties, springing out of the ex-
ploited native working classes, and leaving the exploited working class and the
(.ppressed peasant masses. That is why the imiierialists, under the leadei-ship
of the United States, direi-t their main lire against the destruction of these
native Comnuniist parties.

Secondly, Lattimore makes the mistake of assuming that the relationship
(•f the United States and the Soviet ITnion in Asia is that of a struggle for power.
Here he falls into the trap laid hy American imperialism, which w^ould like to
have the reality of its efforts to maintain its grasp of resources and manpower
<(f Asia.

This approach to American-Soviet relationships obscures the truth. The
Soviet l^niim is not seeking world prwer. When the colonial peoples look for
alliances with the Soviet I'nion, it is because they see in that socialist country
the true defender of their national aspirations. When the Soviet Union alines
itself with these peoples —

I hope I am not reading this too rapidly.
Senator Tydixgs. No. Go ahead.
Mr. BuDExz. (continues reading) :

it is not just a counteralliance to protect its own borders against the attack
of imperialism: it is fundamentally a defense of the national intei'est of the
peoples of these ojljjressed nations.

Because the peoples of the world recognize that an attack on the Soviet Union is
an attack on the defender of their own aspirations, because they see in such an
attack on their own efforts to break the hold of imperialism, they join with the
Soviet Union in a connnon friend against imperialism. They have already seen
how the peoples of the eastern European democracies were able to protect them-
selves from the encroachment of imperialism and to begin their own internal de-
velopment as the result of alliances with and protection by the Soviet Union.

In our ov.-n country, if we are to adopt the proposals Lattimoi-e makes for the
situation in Asia, it is necessary for us to loosen the hold of the imperialists on
our Government. Otherwise, our official policies will continue to be that of op-
pressing the colonial peoples in the interests of our monopoly capitalists.

Mr. MoRGAx. Mr. Budenz, in reference to that article — of course, it
speaks for itself and I do not want to presume to characterize it, but
in reading it, as I recall, there are in that review certain criticisms of
the book ; is that correct ?

Mr, J^JrDF.^z. Yes, sir ; that is correct.

Mr, Morgan. Now may I ask you, as having been editor of the
Daily Worker, was it ordinary or customary in revie^ys of books in the
Daily Worker to speak critically of one who is projecting, so it has
been stated here, a policy for the Soviet Union ?

]Mr. BuDEXz. Yes, sir, I can ex))lain to you that we had the ])olicy
in protecting people who are out beyond the party proper, to criticize
them with faint praise — that is to say, that is, to damn them with faint
praise — rather, to praise them with faint damns, is the way I want to
put it.

Now I can give to this connnittee examples of that, but I just will
have to have time. However, I would like to analyze this, not as a
member of the party but for just a moment out of my experience.

In tlie fii'st place, you Avill note tliat the whole emi)hasis here is on
the " 'Situation in Asia' criticizes United States Government policy in
the Far East," You will note Mr, Lattimore's premise of the immediate
action is approved. That is the important thing for Stalin. Commu-