10: Defense Department Troubleshooting
On January 24, 1952, one of the security checks “by the Bureau of Internal Revenue in 1944-45” revealed some derogatory information from Pawley’s days in India building planes for China. Multiple people described Pawley “as a ‘shady, slick, business operator’. Subject was considered by several representatives of the British-Indian Government and the U.S. Consulate, Madras, India, as having a questionable reputation and was also considered dishonest by some of his previous associates.” Significant among them: “General Chennault who was one of the individuals contacted during investigation stated that he regarded Subject’s record in India and China as questionable and stated that Subject was ‘involved in attempted bribery’.”
Pawley however was not considered “disloyal by any of the persons contacted” so the State Department name check “was returned with a notation that the subject’s investigative file could not be made available for review. In the absence of any derogatory information as to Subject’s loyalty, and in view of Subject’s prominence in the United States, it is felt that he should be placed in the Approved/Caution category.”2
An earlier accusation was also ignored in Pawley’s favor. Joy Lamont had provided information regarding smuggling activities between the U.S. and Mexico that implicated Pawley through what was considered by a Treasury investigator to be a tenuous connection to smuggler Jack Lamont.3 Throughout the summer, additional security checks were conducted on William Pawley.4
In addition to surviving the scrutiny of extensive background checks, Pawley had to endure the loss in September of son Clifton Pawley to accept and serve as Special Assistant to Secretary of Defense Robert A. Lovett as “his ‘personal trouble shooter’ to help break defense bottlenecks.”5
On January 10, 1952, Lovett outlined Pawley’s new international mission “as my personal representative” looking “into all aspects of the U.S. defense effort in Western Europe.” Lovett was “greatly concerned about responsibilities of the Department of Defense” there “with particular reference to France, and wish to assure myself that our politico-military efforts in that area are so organized and so executed as to produce the maximum result and at the same time get the maximum possible return for the U.S. defense dollar expended.” Lovett “would be delighted to have” Pawley’s “views on any aspect of the situation.”
Among the Secretary’s major concerns were the procedures needed to make provisions for the tactical airfields in Germany and France that were required for logistical support of NATO ground forces. Lovett also wanted Pawley to explore a cost-sharing formula, existing working relationships, the “readjustment of existing machinery brought about through the current plan to simplify the North Atlantic Treaty Organization structure” and the “relationship of responsibility for off-shore procurement in Western Europe to other Defense functions in that area.”6
In April, Lovett sent a memo for “Mr. William D. Pawley, Special Assistant to the Secretary of Defense” regarding “Negotiations for Military Operating Facilities in Western Europe.” Lovett wanted Pawley to stop “off in France for a week or ten days, en route to India” to determine “the feasibility of Ambassador Dunn, Ambassador Draper and yourself approaching the French Government in support of the military Facilities Negotiating Group” that are “of vital interest to our respective countries.” In mid-April Pawley flew to Paris.7
Throughout that spring, when William and Edna Pawley were in Paris for the Truman Administration, they often ate lunch or dinner with Mamie and General Eisenhower who was engaged in talks at the Supreme Headquarters Allied Powers Europe. During this period, they discussed the prospect of Ike running for President of the United States.8
In August, The New York Times reported that delays had been overcome and work was proceeding on “the construction of an imposing supply line, or line of communication, stretching nearly 1,000 miles from Bordeaux in southwest France to Kaiserlautern” and that there were “150 U.S. supply depots in France.”9
The United States brought Japan to its knees by dropping horrifically deadly atomic bombs on Hiroshima and Nagasaki, which quickly hastened the end of World War II. U.S. Air Force General Carl Spaatz described the B-36 intercontinental bomber and the atomic bomb as “the greatest forces for peace in the world.”10 Obtaining fissionable materials—and preventing the enemies of America from acquiring them—soon became of utmost importance to the U.S. national defense.
Immediately after the war, Ilia Tolstoy, who obtained the radio transmitter for Tibet with a Pawley brother, undertook another secret OSS mission to find uranium in China.11 Members of Congress and the Atomic Energy Commission were concerned that Soviet or Chinese communists could get their hands on the material needed to build atomic bombs.
Pawley specifically worried about India’s vast thorium-rich monazite which India’s Prime Minister Jawaharlal Nehru had embargoed shipping to the U.S. since 1946 in a display of his disapproval of America’s use of nuclear weapons. Pawley envisioned approaching Nehru in 1951 with an offer he couldn’t refuse—wheat to help stave the vast starvation in India in exchange for monazite.
Secretary of Defense Robert Lovett and Secretary of State Dean Acheson agreed with Atomic Energy Commission Chairman Gordon Evans Dean that William Pawley should be “authorized to negotiate” a contract to buy 1,000 tons of monazite annually from India for “medical reasons.” Pawley “should be instructed to get a commitment in writing from the Indian Government if possible that it would not ship monazite or its derivatives to any Iron Curtain country.”12
An October 1952 memorandum from Robert Lovett to Pawley showed some other details of the importance of the negotiation with India. “The Department of Defense will make available out of ‘Contingencies, Defense’ up to $1,400,000 which may be used, in your discretion.” DOD and AEC “will use their best efforts to interest a competent U.S. firm in providing technical management or assistance in setting up and operating the proposed monazite processing plant in India.” And like Rosslyn, the U.S. Navy would play a role as “the executive agency responsible for ... all necessary contracts.”13
Pawley kept detailed notes on his discussions at India House, London, England with Mr. N.R. Pillai and Dr. S.S. Bhatnagar, representing the Government of India, relating to the establishment and operation of a Joint Indo-American Monazite-Processing Plant in India. Pawley reiterated that “the U.S. Atomic Energy Commission was prepared to take all thorium compounds made available by India” and “he believed the United States Government could purchase $500,000 worth of other end-products” over “one or two years.” Regarding U.S. technical assistance, Pawley suggested that “American opinion emphasized the desirability of ... a competent private American firm” as opposed to a U.S. government agency.14
In his autobiography, Pawley wrote that he also was dealing with India’s Atomic Energy Commission Chairman Dr. H. J. Bhabha, “a brilliant young atomic scientist” who as a former “Communist in his youth” needed to receive security clearance so he could come to Washington to discuss a second monazite plant. Dr. Bhabha got “a special dispensation” and “we finally reached agreement with India that the United States would import all of that country’s surplus thorium and substantial quantities of her rare earths.”15
Pawley proved to be the perfect individual for the sensitive mission—a special envoy possessing the diplomatic skills, contract-negotiating expertise and the in-country knowledge essential for success.16
Even though he was already conducting the most sensitive of discussions for the nation, Pawley continued to be the focus of the security checks throughout the summer17 and fall of 1952.18
During William Pawley’s monazite mission, two decades of Democrats occupying the oval office came to an end with the inauguration of President Dwight Eisenhower and Vice President Richard Nixon.19 Both would rely on the former confidante to President Truman in the decades ahead.
With Pawley’s mission complete, interest in Pawley ended, and his covert security clearance was cancelled at the end of December.20
Despite this cancellation, new information was still surfacing, and soon other background checks were initiated with respect to Pawley’s investment in Civil Air Transport (CAT) and possible criminal acts regarding the reporting of income.21 Over the next four decades, CAT became a transport arm of the CIA and provided cover for CIA operations in China and Southeast Asia.22
On January 22, 1953, R.L. Bannerman of the CIA Deputy Security Office drafted a memorandum for the file regarding Pawley and CAT. “Confidential source advises that William Pawley ... was one of the original investors in CAT. It is believed he has since disposed of his investment in CAT, however some facts attendant to this investment appear to have an unsavory nature. The Secret Service conducted a full investigation of this matter and the file is supposed to be on record in Secret Service.”23
In addition to CIA, Secret Service, and Army Criminal Investigation Division interest in the matter, the FBI’s Washington Field Office (WFO) was told to handle the case by Robert H. Cunningham.24
The FBI’s A.H. Belmont sent a March 2, 1953 memorandum to D.M. Ladd which disclosed some confusion regarding the spelling of Pawley as Pauley (at the time, there was a prominent oilman and Truman political adviser named Edwin Pauley). The memo was prepared at the request of FBI director Hoover’s close associate Clyde Tolson who mentioned Pawley’s friendliness to the FBI and “high regard” for the Bureau and Director Hoover. The memo pointed out that in 1951, Pawley “made allegations that [Ambassador Spruille] Braden was under control of George Michanowsky, Political Advisor of Latin American Affairs for CIO in 1946” whom Pawley had accused “of working with the Communist Party.” Pawley further asserted “that Michanowsky had made a deal with Braden whereby the Democratic Party would receive six million CIO votes if certain activities of Braden, particularly as they related to Latin America, could be directed by Michanowsky.”25
In the summer of 1953, another nemesis of Pawley’s would make a significant move. On July 26, 1953, Fidel Castro, and his brother Raul led a group of revolutionaries in an attack on the Moncada Army Barracks in Santiago de Cuba. The brothers were captured and imprisoned and more than 100 were killed. Defending “himself in a trial open to national and international media, he [Fidel] was convicted and jailed, and subsequently was freed in an act of clemency, before going into exile in Mexico. There he organized the ‘26th of July Movement’ with the goal of overthrowing Batista, and the group sailed to Cuba on board the yacht Granma, landing in the eastern part of the island in December 1956.”26
Prior to leaving for the Governors Conference, President Eisenhower and Mamie spent a day with the Pawleys in Virginia and received an enormous offer. Pawley wanted to buy the President a 500-acre farm in Virginia (some 300 acres smaller than Pawley’s). The next day Ike rejected the offer in writing, saying that Mamie was too attached to their Gettysburg, Pennsylvania farm, so he would be rebuilding the farmhouse.27
In the Fall of 1953, General Marshall was awarded the Nobel Peace Prize for proposing and implementing the Marshall Plan for the economic recovery of Europe, much to the delight of the Pawleys.28
During that same quarter, the Special Security Division finished its Pawley name check for the FBI. The investigation reported that nothing was found on Pawley at the House Committee on Unamerican Activities and “suggested further information may be available at the Department of State.”
William and Edna went back to Mexico City in early December 1953 but returned to Miami in time to spend Christmas at home with Mr. Pawley’s daughter, Irene, a junior in Hollins College.29
The New Year would bring the troubleshooter into a profound new role.
FOOTNOTES:
1 NARA 1993.07.31.10:52:29:560034 ~ 10/3/1951 “Case Processing Record on Pawley, William Douglas.” Subjects: Case record; Pawley, William. From: [None]. To: [None].
NARA 1993.07.31.09:44:50:340034 ~ 1/10/1952 “W. D. P. (Pawley) – EE -7144-A-Results of Inquiries at Federal Agencies.” From: Farrell. Francis. To: [None].
NARA 104-10139-10017 ~ 1/24/1952 “Security Check on William Pawley.” From: O’Rourke, George, C/SD/I&SS. To: Chief, Contact Division, OO. Subjects: Pawley, William.
NARA 104-10139-10018 ~ 1/24/1952 “Pawley, William Douglas EE-7144-A.” From: O'Rourke, George. To: Osborne, W.A. Subjects: Pawley, William.
NARA 1993.08.05.08:45:09:960007 ~ 1/10/1952 Page 6: Form signed 1/11 by Francis M. Farrell. Subject: W.D.P. EE-7144-A.
Results of Inquiries at Federal Agencies
[Hand notes] AGENCY RETURN DATE
FBI L-5 NIC 11/17
ONI L-3 NR 10/26
ACSI L-2 SA 12/4
STATE L-1 SA 11/1
PD
CSC L-6
HCUA NR 11/5
OSI L-7 11/5
DCII L-9
Biographical Data on Page 7 indicated Pawley lived at 2555 Lake Avenue, Sunset Island #2, Miami, Florida and his employment included:
Present Chairman of Board, Intercontinent Corporation
30 Rockefeller Plaza, New York City.
Also is President of Miami Beach Railway
1948 U.S. Ambassador to Brazil
? U.S. Ambassador to Peru
? President of Cuban Airways
? Employed by Pan-American Airways in an advisory capacity.
-
Subject was investigated by the Bureau of Internal Revenue in 1944-45... several persons described Subject as a “shady, slick, business operator”. Subject was considered by several representatives of the British- Indian Government and the U.S. Consulate, Madras, India, as having a questionable reputation and was also considered dishonest by some of his previous associates. General Chennault who was one of the individuals contacted during investigation stated that he regarded Subject’s record in India and China as questionable and stated that Subject was “involved in attempted bribery”.
3 NARA Record Number 1993.08.09.17:42:39:250007 ~ 6/6/ 1951 “Information Supplied by Mrs. Joy Lamont Relative to Suspected Narcotics and Smuggling Activities Between Mexico and the United States.” From: Speakes, John, N., FBI (Mexico). To: Cauchon, J. E., Treasury (Mexico). Subjects: Smuggler; Lamont, Jack [The connection to Pawley seems tenuous].
4 NARA 1993.08.05.09:02:37:710007 ~ July 8, 1952 (finished October 7, 1952) “IID Check - William D Pawley.” From: Williams, M., CIA Special Security Div/I&SO. To: [None]. Subjects: Pawley, William.
NARA 1993.08.05.10:02:01:430007 ~ 9/10/1952 ”Handwritten notes about cables on William Pawley.” Tolstoy Project; Rosslyn Materia. From: Nealon, John, SA/Spec. Subjects: Pawley, William. Referral Br. To: Memo for Files.
NARA 1993.08.04.10:35:49:930006 ~ 9/10/1952 Note re William D Pawley. Subjects: OSO; Security check; Pawley, William. From: [[DELETION]], Special Agent. To: [None].
NARA 104-10138-10189. ~ 9/10/1952 “Pawley, William D: Following cables were found.” Subjects: Pawley, William; OSO files. From: SAIC. To: [None].
5 “W. Pawley to Aid Lovett on Defense.” The Washington Post, December 11, 1951. Page 4.
6 January 10, 1952. Memorandum for Mr. W. D. Pawley. From: Robert Lovett, The Secretary of Defense, Washington. Marshall Library, Pawley Papers, Box #1, folder 3.
7 “Pawley Flying to Paris.” The New York Times, April 15, 1952. Page 5.
8 Pawley, Russia Is Winning, Chapter 17.
9 “Supply Line of U.S. Pushed in France: Early Delays Overcome, Work on 150 Depots Along Route Is Progressing Rapidly.” By Benjamin Welles. The New York Times, August 5, 1952. Page 9.
10 “Spaatz Calls B-36 and Bomb 'Greatest Forces for Peace'; If They Were Not in American Possession, Russia Could Take 'Europe and Asia,' Former Air Force Head Testifies.” By William R. Conklin. The New York Times, August 23, 1949.
>> On May 6, 1955 Spaatz was appointed to Operation Brotherhood with William Donovan and Leo Cherne, head of the International Rescue Committee (IRC).
“Berlin Refugee Clothing Drive to Be Conducted Here,” Wood County Democrat, April 16, 1963 Cherne and Spaatz were members of the IRC.
Advertisement by International Rescue Committee calling for mass demonstrations opposing the Russian invasion of Hungary—"Stop the Massacre Appeal.” Signed by Richard E. Byrd, Lucius D. Clay, William J. Donovan, Henry Luce, Carl Spaatz, Herman W. Steinkraus. New York Herald Tribune, November 6, 1956.
11 Harry S. Truman Papers, White House Central Files: Psychological Strategy Board Files, Dates 1951-53, Gordon Gray Chronological File, Box 5. Harry S. Truman Library & Museum.
>> In addition to OSS member Ilya Tolstoy’s mission to China, the Tolstoy Foundation after WWII helped resettle Eastern European refugees and is referenced in the Truman Library’s White House Central Files: Psychological Strategy Board Files (PSB), 1951-53. The PSB was established “to authorize and provide for the more effective planning, coordination, and conduct within the framework of approved national policies, of psychological operations.” It “was composed of the Undersecretary of State, the Deputy Secretary of Defense and the Director of Central Intelligence, or their designated representatives.” http://www.trumanlibrary.org/hstpaper/physc.htm
>> Gordon Gray served as the first PSB director from June 1951 to May 1952. He was succeeded by Raymond H. Allen who served until September 1952 and was followed by Admiral Alan Kirk for “the remainder of Truman's term.”
12“Minutes of the Meeting of the United States Members of the Combined Policy Committee. Washington, April 16, 1952, 3:30 p.m.” Foreign Relations of The United States, 1952–1954, National Security Affairs, Volume II, Part 2,Office of the Historian, U.S. Department of State. https://history.state.gov/historicaldocuments/frus1952-54v02p2/d14
13 4/11/1952 Memorandum. From: Robert Lovett. To: Mr. William D. Pawley, Special Assistant to the Secretary of Defense. Subject: Negotiations for Military Operating Facilities in Western Europe. Marshall Library, Pawley Papers, Box #1, folders 1-5.
You should proceed to New Delhi, India, arriving about October 10, 1952, to continue negotiations with the Government of India on the monazite processing plant program.
The Department of Defense will make available out of “Contingencies, Defense” up to $1,400,000 which may be used, in your discretion ...
The Department of Defense and the United States Atomic Energy Commission will use their best efforts to interest a competent U.S. firm in providing technical management or assistance in setting up and operating the proposed monazite processing plant in India.
The Department of the Navy will be the executive agency responsible for ... all necessary contracts ...
You should obtain from the Indian Government a commitment to prevent ores and compounds of uranium and thorium from reaching Iron Curtain countries.
14 10/18/1952 Memorandum: “Notes on Discussion I of Questions Related to Establishing and Operating Joint Indo- American Monazite-Processing Plant in India, and Related Matters,” Pawley Papers, Marshall Library, Box #1, folders 1-5.
1. In India House, London, on October 18, 1952. Mr. N.R. Pillai and Dr. S.S. Bhatnagar, representing the Government of India, met with W.D. Pawley, representing the Government of the United States of America, for the purpose of discussing the whole complex of questions connected with establishing and operating a joint Indo-American monazite-processing plant in India. Mr. Pawley was accompanied by his staff, consisting of Messrs. H.B. Gross, N.P. Cassidy, J.B. Hamilton and A.V. Corry [American Embassy attaché].” It was Dr. Bhatnagar's “understanding, he said, that the present market for rare-earth compounds could probably be satisfied from the production of the existing facilities in the United States, India and Brazil. While in the United States [in September], he had had conversations with the Chairman of the United States Atomic Energy Commission, as a result of which he expected that that organization would purchase all of the thorium-containing products (excepting, of course, those that would be required by India) of the existing monazite-processing plant in India.
Pawley queried if there had been any economic feasibility study done regarding the government run Indian Rare-Earths Ltd. but Bhatnagar did not have the figures. “Mr. Pawley then referred to a conversation which he had had with Prime Minister Nehru in New Delhi on October 13, 1952” in which Nehru suggested “exploratory talks in London” to determine “whether there was a bias upon which an agreement could subsequently be finalized, and, if so, to smooth away whatever obstacles were found, to the extent practicable.”
10/18/1952 Memorandum: “Notes on Discussion II of Questions Related to Establishing and Operating Joint Indo- American Monazite-Processing Plant in India, and Related Matters.”
>> The discussions continued on October 20, 1952 and there was a discussion relating to the potential: “The economic success of the expanded Indian monazite industry would depend upon (a) the marketability of its products, and (b) new uses for thorium and cerium.” Pawley reiterated that “the U.S. Atomic Energy Commission was prepared to take all thorium compounds made available by India” and “he believed the United States Government could purchase $500,000 worth of other end-products” over “one or two years.” Regarding U.S. technical assistance, “Mr. Pawley said that American opinion emphasized the desirability of private rather than Government activity in industrial enterprises; he asked whether it would be agreeable to the government of India if American participation in the proposed enterprise were carried out by a competent private American firm.”
15 Pawley, Russia Is Winning, Chapter 17.
16 Bruce Cumings, The Origins of the Korean War Volume II: The Roaring of the Cataract 1947-1950. Page 804, footnote 88 (Citing Pawley, Russia is Winning, Pages 317-319).
17 7/8/1952 “IID Check on William Pawley. Subjects: Pawley, William; IID Check.” From: Cox, Thomas, Special Security. To: [None].
>> On July 8, 1952, an IID check signed by Thomas A. Cox Jr., Special Security Division, reported to his Director’s Office that Alghan R. Lusey who served in the OSS in China in World War II had sent a memo in 1943 regarding Pawley when he was assembling small airplanes in India. Cox had also attached a rough biography of Pawley and an article from The New York Times June 1, 1945.
There are several documents this day including one with handwritten notes on Pawley signed by Thomas A. Cox Jr., Special Security Division to the Director.
18 NARA 104-10122-10115 ~ 10/30/1952 “Pawley, William D. Subjects: Bio Data, State Dept; Security check; Pawley, William.” From: Kane, Edward J. To: Chief, Special Referral Branch.
NARA 1993.07.31.09:01:59:810034 ~ 10/30/1952 Pawley, William - #78435 SCP. From: Kane, Edward J., C/Operations Br. To: C/Special Referral Branch.
19 “Eisenhower Arrives in Capital by Train for Inauguration: Dulles in Group Greeting Him at Station – Crowd in Hotel Glimpses President-Elect.” The New York Times, January 19, 1953.
20 NARA 104-10265-10329 ~ 12/18/1952 MF: Pawley, William Douglas. From: CWH [J. C. King]. To: Chief, Special Security Division.
18 December 1952
Memorandum For; Chief, Special Security Division
Attention: Mr. J. O’Connell, Projects Desk
Subject: Pawley, William Douglas
1. The subject will not be employed.
2. It is request therefore that request for Covert Security Clearance for Subject be cancelled.
J. C. King CWH
NARA 104-10049-10131 ~ “#78435 SCP. From: Kane, Edward J., 12/19/1952 Cancellation of interest in William Pawley.” From: Cunningham, Robert. To: OS. Subjects: Pawley, William; Cancel interest.
NARA 104-10139-10020 ~ 12/30/1952 “Memo re Security Clearance (WM. D. Pawley).” From: [None]. To: Security Officer. Subjects: Pawley.
NARA 104-10049-10132 ~ 12/30/1952 “Cancellation of Covert Security Clearance for William Pawley.” From: [None]. To: Security Officer, CIA. Subjects: Pawley, William.
Undated. Handwritten NOTE “1952 Synopsis of State Dept. investigation of Pawley.” From: [None]. To: [None]. Subjects: Pawley; State Dept; Investigation.
21 NARA 104-10122-10114 ~ 1/22/1953 Memo: “William Pawley, (Civil Air Transport).” From: R. L. Bannerman, Deputy Security Officer, OS. To: Memo for File. Subjects: Pawley, Wm; Civil Air Trans.
NARA 104-10138-10285 ~ 2/17/1953 “Pawley, William D/One of the Original Investors in CAT.” From: Cunningham, Robert H. To: SAC, Washington Field Office.
This will confirm telephonic assignment of this case to your office.
NARA 104-10122-10113 ~ 2/17/1953 Memorandum “Subject: William D Pawley - 78435-B. SI.” From: Robert H. Cunningham. To: SAC, Washington Field Office. Subjects: Pawley, William.
NARA 104-10049-10417 ~ 3/6/1953 Memorandum “Subject: William Pawley, No. 78435-B S.I.” From: Loker, George P., JR. To: C/Special Investigative Div. Subjects: Pawley, William.
NARA 104-10049-10134 ~ 3/6/1953 “Info on William Pawley should be available at Indian Desk, DOS/Criminal
Division, and Army.” From: Loker, George, SA in Charge. To: Chief, Special Investigative Div.
Subjects: Pawley, William; Unjacketed file.
NARA 1993.08.05.11:09:09:530007 ~ 3/6/1953 “Headquarters memo of assignment: Pawley, William.’ From: George P. Loker. To: Chief, Special Investigative Divisi. Subjects: Pawley, William.
NARA 1993.07.30.15:43:36:870034 ~ 3/11/1953 “Secret Service conducted full investigation on William Pawley’s investment with CAT.” From: Cunningham, Robert, C/SPEC. Sec Div To: Deputy Security Officer, CIA. Subjects: CAT investment; Pawley, William.
Handwritten note “4 Mar 53 Synopsis (Detailed) of Treasury Dept. and Army CID investigation of Pawley.” Subjects: Pawley; ARMY CID; Investigation; Treasury Dept. From: [None]. To: [None].
NARA 104-10122-10095 ~ 9/12/1953 “Agency Investigation on William Pawley”. From: [None]. To: [None].
NARA 1993.07.31.10:47:00:590034 ~ 12/7/1953 “Pawley, William D. - Review of file by FBI.” From: [None]. To: [None].Subjects: FBI Review; Pawley, William.
22 On June 2, 2001, three months before Al-Qaeda attacked the United States, George Tenet, Director of the Central Intelligence Agency, was busy issuing a commemorative citation that stated:
During the hottest days of the Cold War, the aircrews and ground personnel of Civil Air Transport and Air America gave unwavering service to the United States of America in the worldwide battle against communist oppression. Over the course of four decades, the courage, dedication to duty, superior airmanship, and sacrifice of these individuals set standards against which all future covert air operations must be measured. From the mist-shrouded peaks of Tibet, to the black skies of China, to the steaming jungles of Southeast Asia, the legendary men and women of Civil Air Transport and Air America always gave full measure of themselves in defense of freedom. They do so despite often outdated equipment, hazardous terrain, dangerous weather, enemy fire, and their own government bureaucracy. Their actions speak eloquently of their skill, bravery loyalty, and faith in themselves, each other, and the United States of America.
>> The citation, a wall plaque listing members and a medallion indicating CAT existed from 1947-1975 are located in the Special Collections Department of the Eugene McDermott Library at the University of Texas at Dallas. The dedication of the collection on May 30, 1987 had among its speakers William Colby, CIA Director 1973-1976 who oversaw Operation Phoenix in Vietnam.
>> The plaque lists the founders as Claire Chennault and Whiting Willauer, not Pawley. The dedication ceremony program notes the ties to the Flying Tigers, and CAT’s relationship to Air America, Southern Air Transport, and the eventual parent company Pacific Corporation. It also notes that the Air America/Civil Air Transport Collection is housed alongside the Jimmy Doolittle Collection among others.
“Billionaire behind Swift Boat ads funded anti-Obama spot.” By Dan Morain> Los Angeles Times, August 23, 2008.
Page A-12.
It was actively involved in the Vietnam War that ravaged America’s psyche in the 1960s and 70s and even in 2004, when John Kerry’s Vietnam military record was attacked by a Texas billionaire, Harold Simmons, who funded the Swift boat group.
23 NARA 104-10122-10114 ~ 1/2/1953 Memo: “William Pawley, (Civil Air Transport).” From: R. L. Bannerman, Deputy Security Officer, OS. To: Memo for File. Subjects: Pawley, Wm; Civil Air Trans.
24 NARA 104-10138-10285 ~ 2/17/1953 “Pawley, William D/One of the Original Investors in CAT.” From: Cunningham, Robert H. To: SAC, Washington Field Office.
This will confirm telephonic assignment of this case to your office.
25 3/2/1953 FBI Memorandum. From: A. H. Belmont. To: D. M. Ladd. Subject: re: William D. Pawley. [10/30/52 Access restricted 1 page DO389].
Memorandum prepared pursuant to telephonic request of Mr. [Clyde] Tolson on February 24, 1953, for summary information on a former Ambassador Pawley whose home is in Florida. William Douglas Pawley has been erroneously identified as [APPROXIMATELY 6 LINES REDACTED] ... No investigation has been conducted on William Pawley who was a real estate broker in Florida, was actively interested in airplane manufacturing and establishment of airlines in foreign countries before becoming Ambassador to Peru in 1945. He was appointed Ambassador to Brazil in 1946 and as late as October 1952, was reported to be special consultant with State Department. Pawley vigorously opposed withdrawal of FBI from SIS work and protested personally to the Director, officials of State Department, General Eisenhower, General Hoyt Vandenberg and President Truman. Expressed high regard for Bureau, the Director and its personnel in Latin America ... In 1951 Pawley was interviewed at his request and made allegations that Braden was under control of George Michanowsky, Political Advisor of Latin American Affairs for CIO in 1946, and who was accused by Pawley of working with the Communist Party ... [and] recent activities with Iron Curtain Refugee Committee headed by his good friend, General Carl Spaatz. Gave his reason for delay in reporting above information as report given to him in confidence might have incriminated high officials in State Department.
RECOMMENDATION:
None. This for your information, and for forwarding to Mr. Tolson.
In view of the above confusion as to both the first and last names, the following searches were made: [REDACTED] William Douglas Pawley, William Douglas Pawley as well as variation Bill Pawley and Bill Pauley.
... As a young boy he lived in Cuba with his parents and later moved to the Republic of Haiti where his father had a business. From 1925 to 1927 he was a real estate broker in Miami...credited with organizing the first commercial airline in Cuba, which he later sold to Pan American Airways. In 1934 he also organized the first airline to operate in China and was credited with being the organizer of the American group of Flying Tigers in China. In March 1945, he established the Intercontinent Aircraft Corporation of Miami with offices at Rockefeller Plaza, New York City. In June 1945, Pawley was appointed Ambassador to Peru and in April, 1946, was made Ambassador to Brazil. As late as October 1952, the files reveal that he was listed as a special consultant with the Department of State.
The files reveal numerous reference reflecting contacts with the Bureau from 1945 through 1951. He repeatedly expressed great respect for the FBI and the Director ...
From his various statements it appeared that Pawley was very anti-Communist...he was bitterly attacked by such newspapers as “La Epoca,” official organ of the radical party in Argentina, and “Hoguera” of Peru. These newspapers called him a “slick promoter” and linked him with Wall Street and claimed that he made “lucrative deals for himself in Peru.”
On August 1, 1951, William D. Pawley, consultant to the Secretary of State, was interviewed at his request in the presence of [REDACTED] ... Pawley stated he heard that Michanowsky had made a deal with Braden whereby the Democratic Party would receive six million CIO votes if certain activities of Braden, particularly as they related to Latin America, could be directed by Michanowsky...a close personal friend of [Gustavo] Duran who was at the time, confidential secretary to Braden. According to Pawley, Duran was a Communist. He continued by saying that while under the direction of Michanowsky, Braden misdirected the Government’s policy in Argentina, caused considerable embarrassment to the United States Government and in fact, acted as an agent for the Communists. Pawley then commented that he never had been friendly with Braden and considered him as an enemy insofar as the State Department and national policy were concerned.
Pawley stated in the early part of 1947, while he was still Ambassador to Brazil but was in New York on private business, he received a personal visit from Michanowsky who stated ‘we realize Braden is all washed up and we would like to see you get along in the State Department.’ He proceeded to offer him an Assistant Secretary of State position if Pawley would in turn report State Department activities to him. Pawley stated that he threw Michanowsky out of his office, immediately came to Washington and in the company of General Eisenhower and the then Attorney General Tom Clark went to the White House and told the story to President Truman. Mr. Pawley related that until a short time before the interview, Michanowsky was attached to an organization in New York known as the Iron Curtain Refugee Committee and that Mr. Gustavo Duran, at which time the United Nations Refugee Committee, was also indirectly associated with the group. [REDACTED] the Refugee Committee which was reported to be sponsored by a private group to look after political refugees entering the United States.
Mr. Pawley desired to present the above-related activities of Michanowsky to the Bureau with the hope that we would investigate him as well as any political refugees brought into the country at the instigation of either Michanowsky or Duran.
When the above interview with Pawley was reported the Director stated ‘It should be tactfully pointed out that the delay of four years in bringing this to our attention by Pawley (if in fact he didn’t do so) will seriously handicap this investigation.’
It was determined after the interview on August 1, 1951 that Pawley had made allegation to the Legal Attaché in May, 1947, to the effect that Spruille Braden was being influenced by Communist elements including George Michanowsky of the CIO. He also advised our Legal Attaché in Paris in September, 1948, that Braden was controlled by the CIO and Pawley took credit for ‘breaking Braden.’ A review of the files revealed that Pawley did not, at any time prior to August 1, 1951, furnish the bureau with information concerning Michanowsky’s alleged contact with him in ‘early 1947.’
In an interview on August 27, 1951, a tactful inquiry was made as to the reason of Pawley’s delay in reporting the above matter to the FBI. He indicated at that time that a memorandum dated March 5, 1947, which had been given in confidence, closely tied in with the matter. He stated that he was reluctant to make the memorandum available because it concerned persons in the State Department, was given him in confidence, possessed a great deal of ‘political’ significance and could be harmful if it fell into the hands of the opposition party. At the conclusion of the interview he reluctantly turned over a copy of the memorandum written by an unidentified author who said he said was [REDACTED PAGE].
26 “Cuba.” United States Department of State, Bureau of Western Hemisphere Affairs. http://www.state.gov/r/pa/ei/bgn/2886.htm
27 “Eisenhower, Dwight D. to William Douglas Pawley, 3 August 1953.” The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 369. (Baltimore, MD: The Johns Hopkins University Press, 1996). World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition. http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/369.cfm
Dear Bill: I am just rushing off to Seattle, and so this note will have to be very brief. However, I did want to say, first, that Mamie and I thoroughly enjoyed our visit with you and Edna yesterday. Needless to say, we are profoundly appreciative of the trouble you took to look up the place for us to examine as a possible residence.
In talking to Mamie, I have come to the conclusion that her heart is really set on the Pennsylvania farm. When I talked about getting rid of it, she looked as if she were about to lose her last friend. So I have decided to go ahead and rebuild that house completely as the one thing I can do really to satisfy her.
Both of us, of course, have the regret that, by going up there, we cannot look forward to having you and Edna as neighbors—but, after all, we won't be too far away for frequent visits.
With love to Edna, and warm regard to yourself, Sincerely
28 11/8/1953 Handwritten Note. From: Edna C. Pawley at Belvoir House, The Plains, Virginia. To: General Geo C Marshall. Marshall Library, Pawley Papers, Box 1, Folder 1.
29 “Baroness Stackleberg. Floridians in the Capital: Drama About UN Delegates Should be Huge.” The Miami News, December 5, 1953.
Labels: AEC, Atomic Energy, CAT, Chennault, China, CIA, Defense Department, FBI, India, monazite, Tolstoy, William Pawley
posted by David Price Cannon @ 2:50 PM
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