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WFO 4121-13947 time and should not ‘encourage either extreme in that t eountry. TYDIKGS stated thet this telegram hed been sent by what he ter large group of conservative American businesenen who formed al of Gonmerce in a larce Chinese oltys 2 Bote = are 5 “at this ‘point EDAARD ‘MORGAN, ‘Counseh for the Comaittes, a Pee oe tioned Mra, UTLEY conoerning her relationship with OLIVER CoB (phonetic). —_. Mre. UTLEY stated thet ehe had known COBURG and had worked for his and es- °{° timated the total inoom reoeived from her writings from COBURG at approxi. mately $140 to $150, Mra, UTLEY stated that her ocoupation at this time = - consisted of writing books and articles as a free lance writer and of giving — lectures» Thereupon she was questioned by Mr, MORGAN concerning inoome dew. rived by her from Chinese ecurces sines 1946, to which she replied negatively, Mra, UTLEY then told Mr. MORGAN that she ie presently a smeuber of the Chins se Policy Association, ia not a direotor of such organization, and received no | conpensation an @ result of her association with that body. In attempting outline the purpose and objectives of that association, in reply to a query by Mr. MORGAN, Mrs. UTIEY was interrupted on several oocasions and summarize the purpose and objectives as being primarily anti-Communist with regard to { At this point, Mrs, UTIZY was questioned by Mr. MORGAN conoerning a book written by hor in 1940, and entitled "Three We Lost“ or "free We | -: Lost", and admitted that in that publication she hat advocated a negotiated | peace with the Nazi Government of Germany. Mr, MORGAN onlled her attention | to her statement on Pace 261 of that book conosrning the possible "humani- |; zation and democrativation of National Sootalism”, which Mra, UTLEY explained as being anti-Ruselan rather than pro-Cerman, as implied by Mr, MORCAH. a MORCAN then called Mre, UTLEY'’s attention to an article by her in the perie | , edical "Common sense” in 1941, which appeared also in the Readers Digest fer Ootober, 1941, in which he reonlled her as saying "the evil of Wasi domi nated Europe is less than the oval of an Boglend fighting An vainwwwe" an J MORGAK next ealled irs UTLEY ta attention to her book “the High ‘ Cost of Vengeance” written in 1949, in whioh UTIZY allegedly desoribed ... fo Brigedier General TAYLOR (phonetic) as being pro-Russian at that time, 4 MORGAN next pointed out a review of her book by DELBERT CLARK, appearing in the New York Tines on July 10, 1949, in which CLARK desoribed her book ag eonsisting of half-truths, lies, ete, concerning har statements regarding . the United States policy in the oooupation of post war Germany. At this —_; point Mra, UTMEY stated that the policy adopted with the consent of the — United States as to the allied oocupation in Germany resulted in a Comm- nist dominated polioye MORGAN then pointed out that in a review of her book in the periodical "Catholic World" in September, 1949, UTLEY placed the blame for the persesution of the German people during the oooupation of Germany on the peo ple of the United States,