10: Defense Department Troubleshooting

While sensitive talks were going on in India, a background check on William Douglas Pawley (EE-7144-A) was requested on October 3, 1951 which circulated for months before he could serve as special assistant to Secretary of Defense Robert Lovett who had replaced George C Marshall the month before. Those queried included the Federal Bureau of Investigation, Office of Naval Intelligence, State Department, Central Intelligence Agency, House Committee on Un-American Activities, CSC (possibly Civil Service Commission), OSI (Office of Scientific Intelligence), and ASCI (U.S. Army’s Assistant Chief of Staff for Intelligence).1

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

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