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Jonesto DeLoach memo 7-12-60 re: Dr. John C. Lilly blamed for someone elses error,if an error was made.) Lilly was asked whether he had informed Under Secretary of the Treasury Baird of the details of this matter. He admitted that he had. told Lilly that Baird would be informed by us of the truth of the matter and that we did not appreciate his spreading these allegations prior to our being given the opportunity to determine the truth.. [Lilly claimed he had told Baird in order that he might receive his letter of introducton to Mr. Hoover. Further, a very close relationship existed between himself and Baird as a. result of a long family friendship. b6 b7C Lilly was then told we had interviewed Colonel Mitchell and that Mitchell's demeanor indicated to us that he was the guilty party in this affair. Lilly was then asked Idirectly whether or not Mitchell had, in fact, given him the false information. He denied it.. He stated he has given SA name to his source of information and he has requested that person advise of his identity. He felt that the matter could then be properly disposed of if this person did talk to Lilly was informed this was certainly not the correct way to handle the situation. He should, instead, tell the name of his informant I and. would promptly contact him. Lilly claimed that he could not do this because his. informant's position might be jeopardized by Lilly releasing his name prior to receiving permission. Lilly stated he would see the informant late this summer and would prevail I upon him to contact the FBI and receive directly from us the facts in this case. Lilly was told we refused to accept his protest regarding our handling of Ithis matter. We felt frankly he had let us down and that the conduct of the Agents at Miami reflected our thinking completely and that their forceful action had been at our specific direction. He was also advised that unless he showed some cooperation on his part he could. not expect assistance from us and we were extremely disappointed in his attitude.. tity Subsequent to telephonic conversation with Dr. Lilly the attached airtt 7-11-60 was received from the Miami Office reflecting their interview with Dr. Lilly. RECOMMENDATIONS: 1. That Mr. Julian B. Baird, Under Secretary of the Treasury, be advised of the facts in this matter by Liaison inasmuch as he has been informed of the rumors concerning the FBI by Lilly 2. That no further contact be had with Lilly and that any future inquiries or requests from him be treated in the light of his refusal to cooperate.