◆ SpookStack

t TN eran tage DeLoach to Mohr memo, 8/11/65 Re: John William Chancellor On 8/6/65, I told Watson of the above-mentioned facts and handed him the report. “I"mentioned that while there was no substantive evidence to indicate ‘| Chancellor was a homosexual, his file nevertheless clearly indicated sufficient evidence to reflect on his character. b7 c ; called me 8/10/65 and stated that the President had reviewed Chancellor's file and had forwarded it to her for filing in a closed envelope. ; he stated the President had made no comr ent regarding the matter. She added, '| | fhowever, that Leonard Marks, Director, Gass panate , “Wiad cénfided to her that is QE, 22 was insisting that he see the results of the FBI investigation on Chancellor, a . Watson called me at 12:30 p.m., 8/11/65, and asked that I join him and John Macy, Chairman of the Civil Service Commission, in his office at 2:30 p.m. He stated it was a matter of Some importance. - Upon joining Watson and Macy in Watson's office, Watson told me that --= Watson indicated that Marks had greatly upset the President concerning the Chancellor .~ case. He added that Marks had told the President that na at U. S. yl Information Agency had advised him that contacts in the FBI with whom he was in daily communication had told him that the Chancellor investigation had been completed jand that there was some question as to Chancellor's morals. The President told Watson to tell me that FBI personnel had no right or authority to "tip off" employees of other Federal agencies regarding matters affecting Presidential appointees. Watson stated the President wanted me to find out if the allegations concerning an. FBI employee weré:Gorrect and that, while the President.did not want anything to be::.-.°" » 74 submitted to him in writing, he wanted to know the outcome of our inquiry into this matter. I told Watson that I would, of course, immediately check into it and that I would verbally, in accordance with instructions, let hint know the results. - _ . ~ Watson stated that the Président had also instructed him to tell me that I was to sit down and prepare an analysis of the Chancellor file indicating that there was nothing wrong with Chancellor and there appeared to be no. reason why he should not be continued in his job. I told Watson that while I of course wanted to abide by the President's instructions, that it certainly appeared to be a little out of the ordinary for me to "clear." anyone, particularly in the Chancellor case. I reminded Watson that it was the President's decision to go ahead and appoint Chancellor without waiting for the full field investigation to be completed. Watson stated that this was true, | however, nevertheless the President wanted a statement from the FBI to put in ; Chancellor's file. -2- Continued on next ‘page....