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Tolsor Mohr UNITED STATES GOV MENT Parsons Belmont Memorandum lah MeGuure Rosen TO MR. A. H. BELMON DATE. July 6, 1960 Tamm Trotter WC Sullivan Tele Room R.O. L'ALLIER Ingram FROM Gandy SUBJECT DR. JOHN C. LILLY DIRECTOR COMMUNICATIONS RESEARCH INSTITUTE BOX 456 ST. THOMAS, VIRGIN ISLANDS As approved in Mr. Jones' attached memorandum of 6-28-60, Liaison discussed with George Gould, Security Services Branch, Office of the Secretary of Defense (0sd), the allegation that FBl had furnished erroneous information concerning Dr. Lilly. Mr. Gould rechecked his records and verified that the first request for. security clearance for Dr. Li1iy had been received by him on 6-26-59, a month after the meeting which Dr. Lilly was asked to leave because he had been allegedly refused a security clearance. It was learned that the meeting in question had been arranged by Colonel Philip Mitchell of the Office of Science, OSD.. colonel Mitchell was interviewed on 7-5-60. At the first mention of Dr. Lilly's name, he flushed and was obviously embarrassed. Colonel Imitchell stated that he had invited Dr. Lilly to attend the May, 1959, meeting and assumed that Dr. Lilly possessed the necessary security clearance. Just before the meeting, he discovered that Dr. Lilly had not, in fact, received any clearance and he, therefore, asked Dr. Liliy to leave the meeting prior to discussion of any classified matters. Colonel Mitchell said"that the failure to arrange for subsequently applied for and received a clearance for Dr. Lilly. Colonel Mitcheli was told that Dr. Lilly had been informed that his Iclearance had been refused because the FBI had incorrectly given. Hlinformation concerning another John Liliy to the Department of Defense. We told Colonel Mitchel1 that the FBI was very exercised at this complete falsehood; that we did not want to be made the goat for anyone else's mistakes; and that we wanted everyone involved to know the truth - place, at which time clearance was promptly granted.by Defense Department. and the FBI furnished no inaccurate information. GAD:sap (8) 1-Parsons 1-DeLoach 1-Ingram 1-Krant JUL 13 1960 1-Belmont 1-Liaison 1-Day Enclosure