Mr. LIPSCOMB. I believe I have come in contact just recently, through an item I have been working on, with one called Stankoimport. These trading companies are making every effort to purchase technical equipment in our country, and there are certain American business firms that are willing to trade with them. One case has just been exposed and the export license has been canceled by the Department of Commerce, for precision ball-bearing machines. I know of another instance where the Department of Commerce has granted an export license for some very technical precision machinery that among other things can manufacture aluminum V-8 motor blocks and their components. I am hopeful, at this date, that the Department of Commerce will cancel this license also after the facts are reviewed. Is there any espionage activity here being conducted by Soviet trading agents and the trading companies? Mr. HOOVER. Yes, there is. The Soviets have maintained a large staff of officials in this country since its first recognition in 1933. These officials have been assigned to the Soviet Embassy, consulates, trade delegations, news media, United Nations, and the Amtorg Trading Corp. It is from these installations that the intelligence activities are directed against the United States. The Amtorg Trading Corp., 355 Lexington Avenue, New York City, acts as buying and selling agent in the United States for approximately 25 foreign trade organizations of the Soviets. Amtorg is a New York corporation formed in 1924. Since 1949 it has been registered with the Department of Justice under the Foreign Agents Registration Act. Currently, there are 32 Soviet officials attached to Amtorg. One of the Soviet foreign trade organizations represented in the United States by Amtorg is "Stankoimport," which handles exports and imports of machine tools, metal and woodworking machinery, ball and roller bearings, and the like. Intourist is the Soviet tourist agency with office space at Amtorg and has one representative in the United States. Four Continent Book Corp., 156 Fifth Avenue, New York City, handles importation and exportation of books, periodicals, and other published material. It is registered under the Foreign Agents Registration Act. One of its foreign principals is Mezhdunarodnaja Kniga (International Book), Moscow. For the most part, the Soviet satellite nations utilize their commercial attachés for handling their trading operations. Of course, the example you cite of the concern where the export license was suspended, I understand this resulted from attention. called to it by one of the Senators as well as yourself. Mr. LIPSCOMB. Is there anything we can do to call to the attention of American business the danger of this kind of trade? If Soviet agents are making business contacts with American businessmen in such plants as precision ball bearing or these motors I was talking about, surely they have access to the plant and other things that they should not be entitled to. Mr. HOOVER. The Department of Commerce has the authority of granting export licenses and therefore has some measure of control over such matters. As you indicated, the Secretary of Commerce withdrew the export license which had been granted. It was probably granted prior to his becoming Secretary of Commerce. Mr. LIPSCOMB. It was. Mr. HOOVER. Such matters are generally handled down the line and not at the secretarial level. As to the attitude of the American businessman, a few of these individuals are unwittingly sympathetic or are inclined to fawn over the Soviets. (Discussion off the record.) PUBLIC APATHY Mr. LIPSCOMB. You mentioned in your testimony public apathy was one of the things that was serious. Mr. HOOVER. I think it is. Mr. LIPSCOMB. Here is an area I hope businessmen and Government employees do not allow to go on without adequate notice and concern. Mr. HOOVER. I think it is a field that certainly ought to be given attention, both by individuals and by groups. I think it is a field in which various congressional committees from time to time could very readily alert the public. Mr. LIPSCOMB. It appears that some citizens are so anxious to have peaceful relations and make profits in trading with the U.S.S.R. that we forget the dangers of Communist aggression, both economic and military. Mr. HOOVER. Unfortunately, that is correct. Mr. LIPSCOMB. Would you care to make any comment on cultural exchanges and whether or not they do cause you any difficulties in this country? (Discussion off the record.) INFILTRATION OF YOUTH GROUPS Mr. LIPSCOMB. In the third supplemental appropriation going before the House of Representatives this week, there is an item for over $1.5 million, having to do with a new cultural exchange with Russia. They are going to nine cities in the United States and taking exhibits on children's books and medical services into these nine different cities. It is a real chance for them to expose people to the way they believe in. Of course, these are really emotional subject matters. Mr. HOOVER. Yes, that gets at the grassroots, our youth. Mr. LIPSCOMB. It is my understanding that there are some new youth organizations being formed. Mr. HOOVER. Yes, sir. Mr. LIPSCOMB. They are primarily supporting the subject of peaceful coexistence and also to relieve the youth of their military responsibilities throughout the country. Are these things being exposed to the American public? Mr. HOOVER. They have been exposed by a number of writers and columnists. I have in mind George Sokolsky and Fulton Lewis, Jr. One of the targets of the Communist Party is to step up its infiltration of youth organizations and the demonstration at San Francisco which occurred last year was typical of their efforts. At the same time there is a rather healthy sign I have observed which is developing at the high school and college level, where young men and women are learning about communism. I think this is a very healthy sign. The more one can learn about communism and its fallacies and its viciousness, the stronger our country will be. I see two tides running. In one is the group in favor of the false peaceful coexistence theory which functions through Communist front organizations and the other is the group of young people operating through anti-Communist organizations. The questions these young people are asking show that they are beginning to realize communism is not all it has been portrayed to be. If we get them thinking and asking that kind of questions, it is a very healthy and wholesome condition. Mr. LIPSCOMB. Will we be able to distinguish these different types of groups when they apply for the Peace Corps and programs of this sort? Will we be able to tell the intent of the people who desire to participate? Mr. HOOVER. It depends on what screening procedures are used in setting up the Peace Corps. Mr. LIPSCOMB. It is important, in my opinion, they make some plans for screening. Mr. HOOVER. I think it would be desirable. (Discussion off the record.) Mr. LIPSCOMB. Thank you very much, Mr. Hoover. Mr. ROONEY. Mr. Cederberg? COMMUNIST THREATS Mr. CEDERBERG. Mr. Director, the hour is getting late and I do not desire to prolong your time before our committee, but I would like to say that I realize, of necessity, a good portion of your testimony must be off the record; but if the average American citizen could sit on this side of the table and listen to your explanation of the subversive threats to our society, I am sure we would not have so many naive people in high places today. Mr. Director, I just wonder if you can give any explanation as to why so many organizations that are basically sound and dedicated to doing what is right-and I do not hesitate to name one of them, the National Council of Churches-why are some of the hierarchy of these organizations so naive to the threat posed by communism in this country? Mr. HOOVER. Mr. Congressman, I think it is due to the fact they have not fully informed themselves as to what the facts are. Many people have the idea that communism is not a serious threat because the movement is numerically small in this country. Its numerical strength is one thing but we must judge it by its fanatical, dedicated, and disciplined membership. Most non-Communists are not disciplined, fanatical believers in the theory and practice of American democracy as are the Communists in communism. That is a reason why some of these people err in their thinking. Such erroneous thinking often results in a great deal of harm, particularly in many organizations where the practice is followed of having the rank-and-file elect delegates to represent them at conventions without exhibiting a sufficient degree of alertness and interest to determine the beliefs of their chosen representatives. As a result, these representatives commit large groups of the rank-and-file to a course of action which in reality is contrary to their true feeling and beliefs. As I pointed out previously in my testimony, apathy also plays a strong part in creating a prevailing atmosphere of indifference to this threat. (Discussion off the record.) Mr. CEDERBERG. That is all I have. Thank you. Mr. ROONEY. Thank you, Mr. Director and gentlemen, for a highly interesting and informative 3-hour session. LETTER FROM THE AMERICAN LEGION (NOTE.-The following communication from the American Legion was subsequently received by the committee:) Hon. JOHN J. ROONEY, THE AMERICAN LEGION, Washington, D.C., April 26, 1961. Chairman, Subcommittee on State, Justice, and Judiciary, House Appropriations Committee, The Capitol, Washington, D.C. DEAR CONGRESSMAN ROONEY: I am writing to you in connection with the hearings being held by your subcommittee, during which consideration will be given to the budget request for the Federal Bureau of Investigation. As you know, the American Legion has always supported adequate funds for this Bureau, the most recent resolution being resolution No. 132 adopted at the 1960 national convention, a copy of which is enclosed. We are not asking for the privilege of a personal appearance but we sincerely ask you and the members of your subcommittee to give this matter favorable consideration. In addition, we respectfully request that you incorporate this letter and the resolution in the record of the hearings. Thanking you for any consideration you may give to this request, I am, Sincerely yours, MILES D. KENNEDY, Director. 1960 NATIONAL CONVENTION OF THE AMERICAN LEGION HELD IN MIAMI BEACH, FLA., OCTOBER 17-20, 1960 Resolution: No. 132. Committee: Americanism commission. Subject: Organized support to combat communism. Whereas it is self-evident that the world conspiracy of communism has as its main objective the subjugation of all free governments everywhere, and endeavors to accomplish this through subversion, treaty-breaking, and the creation of chaotic conditions; and Whereas as wartime veterans we are determined that our freedom, gained at such great cost, shall be maintained so that not only we but all other nations may not succumb to communism: Now, therefore, be it Resolved, by the American Legion in national convention assembled in Miami Beach, Fla., October 17-20, 1960, That as evidence of our unity of national purpose we pledge our unqualified support to the national administration in its efforts to deal with communism in whatever manner it may deem necessary; and be it further Resolved, That proper support and funds be provided to the Senate Internal Security Subcommittee, the House Un-American Activities Committee and the Federal Bureau of Investigation, to successfully wage this fight. APRIL 27, 1961. Mr. MILES D. KENNEDY, Director, Legislative Commission, the American Legion, DEAR MR. KENNEDY; I am today in receipt of your letter of the 26th instant enclosing a copy of a resolution adopted at the 1960 National Convention of the American Legion. As requested, I shall incorporate your letter and the resolution in the record of the hearings before the subcommittee. I might point out that this subcommittee over many years, during over 10 years of which I have been chairman, has never cut one penny of the requested funds for the operations of the Federal Bureau of Investigation under its highly capable director, the Honorable J. Edgar Hoover. With kindest regards, I am Sincerely, MONDAY, MARCH 6, 1961. IMMIGRATION AND NATURALIZATION SERVICE WITNESSES GEN. J. M. SWING, COMMISSIONER E. A. LOUGHRAN, ASSOCIATE COMMISSIONER, MANAGEMENT DALE FRANCIS, ASSISTANT COMMISSIONER, ADMINISTRATION |