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RECOMMENDA TIONS: 1. That the attached airtel directing the San Juan Officeto have a. mature Agent contact Dr. Lilly be approved and forwarded. Lilly to be advised that.the results of an exhaustive inquiry into his allegations have proven them to be completely without foundation. Lilly to be informed that at no time did we ever furnish the Defense Department with information indicating that he had a criminal granting of a clearance for him if an error was made. It should be determined foyDr. Lilly whether or not Mr. Baird has been advised of the allegations. If Baird has been informed by Dr. Lilly of these erroneous reports, then Mr. Baird should be told by Liaison of the facts in the matter.. 2. That Liaison inform Mr. Geerge J. Gould, Chief, Office of the. Secretary of Defense , of the allegations made and that an attempt be made to. identify the person or persons responsible for spreading this false iaformation and that these individuals bs advised of the facts in this case and of our displeasure I Ay - 1a"- DetAils Folo _