August 1, 1951

Fed Reserve Bd amends Regulation W; lengthens payment period; cuts some down payments

Moscow Pravda prints article and reply

hearings on effects of subversive forces on US Far Eastern policy; former USSR Army officer A G Barmine testifies that USSR mil intelligence head Gen Birzin, in '33, called Prof Lattimore and J Barnes 'our men' in connection with a Chinese arms project, and later said they could be better used elsewhere, implying role in USSR intelligence plan to infiltrate Inst of Pacific Relations (IPR) and use it as cover; says 5 yrs later Gen Krivitsky told him that both could be regarded as serving USSR; says he gave this data to FBI but was not asked to testify before Sen (Tydings) Com probing communism in State Dept, '50; Sen McCarthy, observer at hearings, says Barmine name was given to Tydings Com; Barmine testifies on IPR as set-up for Russians; subcom atty R Morris shows IPR USSR branch founders were politicians, not scientists; Barmine on own role to bar Amer pub from being duped by Communist propaganda; cites critique of Lattimore book Solution in Asia for Readers Digest and rev of book for New Leader in which he said writers B Atkinson, E Snow, A Smedley, H Forman and Lattimore helped Chinese Communists; Barnes and Lattimore issue denials, citing Russians criticism of them

US acts to officially end Czech ties

No progress toward an agreement on a buffer zone during a Korea armistice was reported after the sixteenth meeting in Kaesong. Observers believed that only a compromise could avert a breakdown of the negotiations. [1:8.] There was little...