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_ #2 Chicago, Dlinois. le identities of which he does not now recall, which indicate that Mr. Chanicellor vp Memorandum to Mr. Gale woe RE: JOHN nA CHANCELLOR, i: feat EBA. s $ o Washington, D. C., was an ancellor's in Chicago, Tinois, at the time of his arrests, frankly told interviewing Agents that he would not have admitted he knew of Chancellor’ s arrests. had he not been pinned down and . asked about them point blank. hancellor's arrest on the fire escape (5) The in May, 1951, is He claimed he had "heard stories” from sources, "may have't homosexual tendencies. (6) Two established informants of the Chicago Office, one a homosexual, reported that Chancellor is known in homosexual circles in Chicago as "one of pace us and friendly to us." (7) After Chancellor's nomination was announced in the newspapers, an unidentified Chicago policeman called our Chicago Office and furnished information regarding Chancellor's arrests. ACTION: For information. From the above, it is clear that there is widespread knowledge concerning Chancellor’ S arrests in the files of other Government agencies, in the Identification Records of the Chicago Police Department, in newspaper morgues, in homosexual circles and throughout the news media. From the above, itis clear that the FBI is not the only agency having knowledge concerning Chancellor's arrest record and as pointed out in Mr. DeLoach's memorandum (attached) the fact that the results of our investigation have been withheld from the employing agency, after having been informed by the White House that they had requested the Bureau to conduct an investigation of Chancellor, immediately arouses ~ suspicion. .