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Alleration by Senator ‘clarthy "Case No. 41 is of an individual born in 1910, in Cleveland, Ohio, appointed to a high position with the State Department drawing the sum of $8,478.75 as an Assistant Chief in the Division of Occupied Areas. He is still in a high-paid posi- tion in the State Department. Investigation by the State Department's own Security Arency disclosed that most of his close associates and friends have records as fellow travelers ani Communists. We admitted having contributed money to a Commnist-front organization. "There is a memorandum in the file to the effect that Joe Panuch had maie considerable efforts to get this man out of the State Department. He was unsuccessful however, and incidentally, the information I get-~and this is not so mich from the files—--is that this man Pamich tried to do a job of housecleaning and was given some- what of a free hani unjer Jimny Byrnes in starting to accomplish the job. However, when Jyrnes left and !farshall took over--Senaters will recall Acheson was then Under Secretary—-the first official act of General Marshall was to discharge the man, Panuct Obviously, General Marshall did not know anything about the situation. Some one of the unierlings said, ‘Get rid of this man.' It would seem to be only the logical thing that he would not, as his first official act, discharge a man, unless the Under Secretary said, 'Get rid of him;' which is rather unusial. Here is one man who had triei to do the job of housecleaning and the ax falis." This individual is apparently Qa Bureau files disclos« tha was investigate? unjer the Hatch Act in 1942. Subsequently a Loyalty Investigation was initiatel in 1948 and information developed during the Hatch Act investigation was utilized and reported? in the Loyalty case. The investigation dis-