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EXEMPTED FROM AUTOMATIC DECLASSIFICATION CON WSONONN 5010-10 AUTHORITY DERIVED FRON: Y1962EDITIN GSA GEN.REG.NO.27 FBI AUTOMATIC DECLASSIFICATION GUIDE UNITED STATES G ERNMENT XEMPTION CODE50X1.6HU/ISM/DIPLO 1 -DATE09-30-2013 ADG E85M26K45 Memorandum 1 - Mr. Bishop Casper Callahan 1 - Mr. Sullivan Conrad Felt DATE: ALL INFORMATION CONTAINED TO 3/22/68 HEREIN IS UNCLASSIFIED EXCEF WHERE SHONN OTHERWISE 1 - Mr. Cotter Tele. Room FROM : R. D. 1 - Liaison Holmes Gandy 1 - Mr. Cregar 1 - Mr. Rachner SUBJECT: JACK ANDERSON 1 - Mr. Manning ARTICLE IN"WASHINGTON POST," 3/20/68 ESPIONAGE -.X This memorandum reports extreme concern of top Defense Department officials and the apparent concern of the Chinese Nationalist Embassy over disclosure of highly (attached). Defense Department plans to initiate investigation.. Anderson Feported that the U.S: in strictest secrecy was preparing to ask CHIANG Kai-shek to withdraw his troops from Quemoy and Matsu, the two Chinese Nationalist occupied islands just off the Chiaese Mainland. Anderson pointed out. that the proposed change in U.S. policy concerning the U.S. commitment to furnish military assistance to defend these islands was predicated upon desire to cut defense expenditures. Anderson goes on to set forth in some detail the position of the. military assistance group in Taiwan which is unalterably opposed to the proposed change in policy. Close liaison contacts in the Air Force and the Office of the Joint Chiefs of Staff confided on 3/22/68 that the Joint.Chiefs and other top Defense officials are incensed over the disclosures in Anderson's column. Defense. has determined that the column is generally accurate and many of the details reported unquestionably taken almost verbatim from two "soeset" documents relating to the matter. It is noted that Anderson makes references to two "sepret" documents.. Some Defense officials reportedly feel that copies.of the documents or information therein was leaked to Anderson by some officer. or official with the military assistance group in Taiwan who. possibly felt the disclosure would embarra$s the U.S. into denying the proposed policy change. and thus result in continuance. of military assistance for defense Sf/$he islands. It was. pointed out that the U.S. has ngti.previously dzscyssed this. matter with the Chinese Nationalists. Encibsure {S U MAR 28 1968 CONTINUED OVER -j-y BdFeau file b1 zb3 BCR:JRW:scr (10) REC- 11 DAIE05-23-2007 3 CLAssIFIED BY 60a24aucbaw/rs/rds