The following bills were passed by the Senate but the House adjourned without acting on them:

S. 3. McCarran-To prevent United States citizens of questionable loyalty from accepting employment by the United Nations.

S. 3428. Ferguson-To authorize the Federal Government to bar from strategic defense facilities any individuals who are subversive or may be disposed to commit acts of sabotage, espionage, or other subversion.

S. 19. McCarran-To suspend the statute of limitations during the period an officer or employee of the Federal Government is in the public service.

S. 2719. Goldwater-To authorize the discontinuance of veterans' educational benefits to an individual when it is found that the pursuit of such activity is not to the best interest of the individual or the Government.

S. 3660. Watkins-To make unlawful the employment of any alien known by the employer to have entered the United States illegally during 3 years previous to such employment.

S. 3661. Watkins-To make unlawful the transportation of an alien who has entered the United States illegally within 3 years prior to such transportation and to provide for seizure of the vehicle used in such transportation.

SECTION III

WORK OF SPECIAL TASK FORCES

Throughout the 4 years of its existence, the subcommittee has persistently sought to expose the power wielded by Communist elements in certain labor unions and to reveal the sinister influence imposed on millions of loyal workmen by the infiltration, and sometimes the domination, of Communists in such unions.

In previous years we have disclosed, in published testimony, the situation we found in the telegraph industry, the Dining Car and Railroad Food Workers Union, the United Public Workers of America, the Distributive, Processing and Office Workers of America, the United Electrical, Radio and Machine Workers of America, the International Union of Mine, Mill and Smelter Workers.

As early as 1951 the subcommittee proposed remedial legislation, which was introduced by the then chairman, the late Senator McCarran.

Beginning in December 1953, and extending well into 1954, a task force of the subcommittee, consisting of Senator Butler, as chairman, Senator Welker, and Senator McCarran, conducted a series of hearings on subversive influence in certain labor organizations.

During the course of these hearings, the task force heard 61 witnesses and published four volumes of testimony.

On the basis of this evidence, the task force reviewed four similar bills, S. 23 and S. 2286 by Senator McCarran, S. 1254 by Senator Goldwater, and S. 1606 by Senator Butler and produced a new bill which, approved by the Committee on the Judiciary and enacted by the Congress, became Public Law 637.

This law denies bargaining powers to any union which the Subversive Control Board finds to be Communist infiltrated. The Senate bill was passed without change in its labor provisions, but with an amendment from the floor which added additional sections which outlaw the Communist Party.

The Attorney General, Herbert Brownell, Jr., in a press conference after the legislation had become law, described its labor features as "this new and powerful weapon given to the law enforcement agencies of the Government."

This same task force also processed H. R. 9500, the Espionage and Sabotage Act of 1954, which is now Public Law 777.

While this legislation follows a draft prepared by the Justice Department, the subcommittee feels that its hearings on the labor situation, as well as numerous other inquiries it conducted on the subject of espionage in the past generated support which materially aided in approval of the bill.

Legislation to strengthen protection against sabotage in defense facilities also was processed by this task force. The bill S. 3428 passed the Senate, but was not acted on by the House.

Under a task force consisting of Chairman Jenner and Senators Welker and McCarran, an enlightening picture of the Kremlin's efforts to use international trade as a weapon against the free nations under the same old phony slogan of "peaceful coexistence" was developed. Seeking a documentation of the strategy and tactics of world communism, the task force examined 17 witnesses. Among them were an Army general, several international traders, a lawyer, and 3 writers who specialized on foreign trade, a college teacher active in an organization of anti-Communist Russians, 2 former intelligence officers, and 2 expatriated Russians.

These witnesses revealed an outwardly plausible but highly dangerous and historically worthless trade program offered by the Communist dictators.

Many of the witnesses advocated severance of diplomatic relations with the Soviet Government; some suggested withdrawal from the United Nations.

Members of the task force joined in introduction of a bill making it a felony to import or ship in interstate commerce any commodity or goods produced by slave labor.

This task force also processed Senate Joint Resolution 169 introduced by Senator Welker authorizing the President to proclaim the first Sunday of each month as a day of prayer for people enslaved behind the Iron Curtain. It passed the Senate but was not acted on by the House.

Legislation designed to check the Communist propaganda machine in this country evolved from a series of hearings conducted by a task force consisting of Senators Welker, Butler, and McCarran. This bill was enacted by Congress and became Public Law 557.

In 1954, the task force took testimony from 27 witnesses in 11 hearings and this record, supplementing earlier hearings in which Senator Eastland participated, furnished a picture of a Communist printing and propaganda machine of astounding proportions.

In addition to the many types of Communist propaganda originating in this country, the task force examined a vast amount of Communist material shipped here from Iron Curtain countries.

The subcommittee published one volume of hearings with a report on Communist underground printing facilities and illegal propaganda. It also published, in three parts, task force hearings on Communist propaganda directed at political subversion.

Legislation introduced by Senator McCarran to strengthen the controls exercised under the Foreign Agents Registration Act over foreign propaganda also was processed by this task force. This bill, S. 37, would apply to the importation of foreign propaganda. It passed the Senate, but was not acted on in the House.

56025-55-2

Senator Eastland headed a task force assigned to an investigation of the Southern Conference Education Fund, Inc. Testimony was taken from 13 witnesses in a public hearing.

Members of the subcommittee, as designated by the chairman, conducted hearings on communism in the District of Columbia, Communist infiltration from abroad and Communist activities of naturalized citizens.

In addition, task forces conducted many exploratory, investigative hearings held in executive session.

In 1 case in 1954, an executive hearing contributed to the removal of 8 American citizens from an international agency. They were removed because their records, as reported to the subcommittee, indicated substantial subversive activity.

The subcommittee has learned that no phase of its study of Communist influence can be completely closed so long as the Kremlin conspirators remain in power. Indeed, the Congress recognized that fact when it created the subcommittee and charged it with a continuing study of subversion in all its forms.

One paragraph of the enabling resolution declares that those who seek to evade the laws on subversion, espionage, and other efforts to destroy our Government "constantly seek to devise and do devise clever and evasive means and tactics for such purpose."

Thus, the subcommittee emphasizes that its exposures of Communist penetration of labor organizations, Communist propaganda, and of the strategy and tactics of world communism must go on with unrelenting zeal.

SECTION IV

ACTIVITIES OF SOVIET SECRET INTELLIGENCE

To properly understand the Communist fifth column which has its agents in our midst, it is necessary to have an insight into the nature of the Soviet Secret Service, the parent body. We had as a witness on May 21, 1954, Nikolai Evgeniyevich Khokhlov, who had been in the service of the Soviet MGB, the organization dealing with intelligence and counterintelligence. Highlights of his testimony were as follows: During the last war, Mr. Khokhlov belonged to the fourth administration of the MGB (later known as the ninth section), which was in charge of guerrilla or partisan warfare. The real purpose of the organization was diversionary and terroristic activity abroad in behalf of the Soviet Union, including the assassination of anti-Soviet individuals. (Diversionary activities were described by Mr. Khokhlov as preparation or organization of explosions, sabotage, setting fires in ports and harbors, and throwing bombs in cities to create panic. Mr. Khokhlov said that for 13 years he had received training from this organization, studying foreign languages and being schooled for life abroad.)

In October 1953, Khokhlov was assigned to Berlin for the job of assassinating Georgi Sergeyevich Okolovich, a leader of an anti-Soviet Russian emigre propaganda group known as the National Labor Alliance or NTS. The assignment was made by Khokhlov's superior, Col. L. A. Studnikov, a subordinate of Maj. Gen. Aleksandr Sememovich Panyushkin, former Soviet Ambassador to the United States.

As a precautionary measure, Khokhlov was forbidden by Studnikov to carry out the assassination personally. He was instructed to recruit two German agents and prepare the necessary documents and weapons for the purpose. He was assigned to make a study of the extensive file of Okolovich and his organization. Over $11,000 was allotted to him for the project and he was equipped with a suitable passport.

Despite his education under the Soviet regime and his long career in the MGB, Khokhlov balked at his assignment. He was influenced by his wife, Yanina, educated under the Soviets, but nevertheless, a devoutly religious woman. She declared that she would not be the wife of an assassin.

Determined to save his wife and child from the Soviet regime and to free himself from the terrors of the MGB, Khokhlov decided that he would seek the advice of the man he was assigned to kill, Okolovich, the only person he felt he could trust not to betray him to the Soviet police. He thought he might be aided by the National Labor Alliance. He prepared systematically for his meeting with Okolovich.

Addressing himself to Panyushkin, the official in charge of such matters, Khokhlov requested the construction of special weapons for the assassination, including a cigarette case and a 3-shot pistol, both equipped to fire explosive poison bullets noiselessly. These were to be manufactured by MGB laboratories 12 and 13, which produced secret weapons. (Khokhlov presented these two deadly weapons as exhibits in the course of his testimony before the subcommittee.) He also collected documentary material from the MGB file and forwarded it to a hideout in Lausanne, Switzerland. All this material, he felt, would be useful in his effort to enlist aid for his family.

For his agents, he selected two German Communists who had fought in the Spanish Civil War. (In view of the fact that a number of American Communists had fought in the Spanish Loyalist forces, Mr. Khokhlov was asked by committee counsel, "Was it the practice of the MGB to use persons who had experience in the Spanish Civil War for such activity?" He answered, "Yes; this is a widespread practice." He was then asked, "Would you say it is the practice of the Communist Parties throughout the world to make available such agents for enlistment by the MGB?" He answered, "The Communist Party always served faithfully the Soviet Intelligence Service.")

Khokhlov's agents were carefully trained for their assignment by a champion pistol shot in Moscow. They were shipped by plane from Moscow to Berlin and then to Vienna, where Khokhlov arrived on January 13, 1954, in a Soviet civil aircraft. Having checked on the training and the directives issued to his associates, on the transmission of funds, mostly in dollars, Khokhlov was ready for his mission. Suddenly orders came from Moscow ordering delay so as not to interfere with diplomatic maneuvers at the Berlin Conference.

Khokhlov was prepared with the greatest of care for his macabre mission. He received precise information as to Okolovich's mode of living, the floor on which he lived, the number of windows, and similar details. He knew that it was possible to enter Okolovich's residence only between 6 and 7 in the evening, when the guards left and the street door would not be locked.

February 18, at about 6:30 p. m., Khokhlov appeared at the Okolovich apartment. He explained that he had been sent from Moscow to

murder Okolovich and offered to furnish proof. Khokhlov described the details of previous attempts to assassinate Okolovich, which could be known only to the MGB. He said he could not be an assassin and pleaded for aid in saving his wife and child through the aid of the National Labor Alliance. Okolovich said that this was impossible but offered to place Khokhlov in contact with Western authorities, which was done. (At the close of this phase of his testimony, Khokhlov made a plea to the President of the United States to save his wife and child.)

In 1943, during World War II, Khokhlov had been assigned to assassinate a German gauleiter named Kube in western Byelorussia. With the aid of a household servant and a magnetized mine placed under Kube's bed, that job was successfully accomplished. Khokhlov said the MGB used highly trained personnel for its murders, individuals with previous experience in the gory business.

From 1946 to 1949, Khokhlov carried out an assignment in Rumania. In 1952 Khokhlov was designated by Lieutenant General Sudaplatov to carry out the peacetime murder of a certain Russian emigre in Paris. He was instructed to go to France with forged Swiss documents, accompanied by an MGB woman, Major Ivanova, who was to serve as a watchdog over Khokhlov and perhaps assassinate him after the completion of the project. According to schedule he was to liquidate, not only this emigre, but also his friend who was to be the finger man for the job. Khokhlov told his superior that he was physically and morally incapable of carrying out this mission and his assignment was canceled.

In the course of his testimony, Khokhlov described the internal structure of the MGB, especially the Ninth Section headed by Sudaplatov, which included an American desk for terroristic and diversionary activities against the United States. According to him, operatives were told that their main target was American military installations, warehouses and harbors. Laboratory 13, he said, produced the chemicals and technical devices for incendiary action against such targets, these materials being packed in containers to give the appearance of ordinary American products like soap, etc. Soviet Embassies, trade missions and other Soviet organizations abroad, he testified, are used for collecting intelligence information; officials functioning in such legal organizations do not participate in terroristic or diversionary activity, nor are they in contact with those so engaged. Khokhlov said that the Russian people were not in sympathy with any war against the United States nor were they in sympathy with the present regime in the Soviet Union.

Since Mr. Khokhlov is an escapee from Soviet Russia, and, since it is impossible to check the authenticity of his testimony, the subcommittee does not vouch for its veracity.

SECTION V

INTERLOCKING SUBVERSION IN POLICYMAKING

In its report on Interlocking Subversion in Government Departments issued on July 30, 1953, the Senate Internal Security Subcommittee pointed out that "the Communists who infiltrated our Government worked behind the scenes guiding research and preparing memoranda on which basic American policies were set, writing