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Airtel to San Juan DR. JOHN C. LILLY for Dr. Lilly. He was granted a "Secret" clearance in August, 1959. The possibility exists that an error was made by someone in the Defense Department and that the blame is being placed on the FBI. You should have a mature and experienced Agent contact Dr. Lilly and advise him that we have conducted an exhaustive inquiry into his allegations and have found them to be without foundation. He should be informed that at no time did we ever furnish the Defense Department with informatlon indieating that he had a criminal record, and that we unequivocally refuse to accept the blame for any error in the granting of a elearance for him if an error was made. Dr. Lilly should not be advised of the information which we have received from the Defense Department. Dr. Lilly should again be requested to furnish the name of the person or persons who made these allegations to him conceraing a mistake on the part of the FBl. It is noted that Dr. Lilly refused to furnish this data when he was interviewed on 6-21-60. Dr. Lilly should also be questloned as to whether or not he has informed Mr. Baird of these allegations. If he has done so, It should be pointed out to Dr. Lilly that we intend to promptly contact Mr. Baird and advise him of the facts in this matter. Advise the Bureau, attention Crime Research Section, of the results of your action in this matter. NOrE: See Jones to DeLoach memo dated 6-20-60 under same caption. No dead line is being set for San Juan in view of Dr. Lilly's absence fromthe Virgin Islands and the date of his return is unknown. 2