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Tolson Mohr Parsons UNITED STATES GOVERNMENT Memorandum McGuire Rosen ro MR. A. H. BELMON DATE July 15, 1960 Tamm Trotter W C Sullvan Tele Roon Ingran FROM R.O.L'ALLIER Gandy SUBJECT DR. JOHN C. LILLY DIRECTOR, COMNUNICATIONS RESEARCH INSTITUTES Previous memoranda have reported that Dr. Lilly was forced to leave a conference at the Defense Department due to the fact that he had no clearance. He was told by someone in Defense that the reason his clearance had not been granted was that the FBIYad erred and had furnished information on a convict named John lilly. Lilly has refused to disclose who told him this. He was sent to the Bureau by Mr. Julian B. Baird, Under Secretary of the Treasury for Monetary Affairs.. On 7-15-60 Mr. Baird was advised of the facts in this. matter. It was pointed out to him that we had not furnished any information of a criminal nature concerning Dr. Lilly to the Defense Department, and that this appeared to be an attempt by someone in the Defense Department to cover up its error. Mr. Baird also was advised that we had told Dr. Lilly of the true facts in this matter I and that Dr. Lilly had refused to name his source. Mr. Baird stated that he was very glad that the Bureau Ihad cleared up this matter and stated that he had no respect for anyone who would blame another agency for their own error. Mr. Baird ACTION: For information. BAW:sap (7) 1-Parsons 1-Belmont 1-Ingram 1-Krant 1-Liaison 1-Wel1s 10 JUL RU 369 62 JUL 22 1960