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[ - in respect to the presentation of facts and conclusions. oe : Department, which repudiated the report prepa ™. the report of Klaus {8 analyzed In sections and the report ‘at Klaus is”” dascribed as "an amazing document of half-truths, ineunos, fussy thinking - ce Ae the ‘quality and scope of the > dnvestigation shoutd be et fnprovede Investigators and review officials should be schooled and ©.” reindoctrinated in the Department's standards of employnent, foreign | intelligence, Civil Service rogulations, ete. The investigators should = mertake imapinative, critical and more difficult investigation rather _ than compel the Department to rely upon other agenctes such as the FEI, t Hore discriminate use should be made of inveatigations conducted by other 7 aroucies auch as the FBI and the possibility should be explored 0 of using - additional agencies such as Treasury and CIG. t 4 Be Intelligence coordination ‘should be enlarged and inproved, Son The evaluators in CON should be trained in evidence and the application of =; — standards to fact. Report writing in personnel cases sfiould be inproved od C. Standirds of employment and security should be frojuently fe refornulated for the guidance ef personnel and security officerse = . D. The Sccurity Committee should be abolished. ‘fhe functions of | adjudication should be divided between Personnel and CON. “A nav quasi~ . ' judicta al body should be formed with established procedures oo pM 7 B.° ‘the place of the Department in the entire eomter Intelligence . field should be yeexamined, Every case of rejection on evidence of foreign -. “agencies should bé a cause for counter Intelligence consideration and report to the Department. Careful reaxanination should be made of the FBI as an a. . intelligence agency serving the Department and proper use of the facklities of of CIG and other governnental agencies for the same purpos®e = Oe REPLY 20 THE SURVEY OF KLWS BY STARR DEPARRGHT OFFICER: re | In April, 1947, the Bureaw’ received & copy of a ects salted ; ; sme Story of Sanny*, which was prepared by wnt the aoctment ‘and dowaight mis-etatement", For example, in the Klaus report there was y ‘ tatement aa to the Investigation of finanelal connections. - aa . Indicated in that it wis the first. tina he had ever sean . stinental dteabilitge as a qua factor in the field of eccurity. Ag to the oriticisn in Taset or the availability atatad that thoes wannrta ware af WRAP Oe ne eet a + a : a a i