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Jones to DeLoach memo 6-28-60 re: Dr. John C. Lilly security clearance inasmuch as he had intentionally stayed away from military and security applications of his research. As a scientist he felt he could do his best work free of the control of the military, and while he needed assistance from them, he desired to remain free of their control. The resalts of his work are, of course, available to the military. Dr. Lilly stated that at the meeting were many scientists with whom he was closely associated socially and in a professional manner and that he was well acquainted with the military officials who were present. The request for him to leave during the meeting was a source of tremendous embarrassment to him. It was explained to Dr. Lilly that inasmuch as he did not have security clearance he could not remain for the classified portion of the meeting. He protested that since the film was the result of basic work done by him, he should certainly be allowed to remain. Military officials were adamant, however, and he left. Dr. Lilly has subsequently learned from a source which he refuses to disclose that the reason he was asked to leave the meeting was that a security officer at the meeting, upon learning that Dr. Lilly had no clearance, telephoned the FBI. The security officer was informed by the FBI that Dr. Lilly was a convicted felon, and as a result it was decided that he should be asked to leave the meeting inasmuch as he could not be granted elearance. This same source has also informed Dr. Lilly that the F0I erred in the information which it furnished in that the name of a convict, one John Lilly, was switched with Dr. Lilly's Iname by the FBI and that the FBI had falsely attached a criminal record to his name. Jnasmuch as Dr. Lilly anticipates asking for future grants from Government agencies, he desired that this matter be cleared up and that the mistake made by the Bureau be acknowledged and rectified. Despite repeated questioning, he continued to refuse to divulge Jhis source af information concerning the FBI and our alleged mistake but indlcated that it is a scientist associate with the Department of Defense and probably a personal friend of It was explained to Dr. Lilly that the circumstances surrounding the alleged check with the FBI did not ring true because we would not furnish a criminaI record of a person on the basis of a name and without fingerprints and without the admonition that such a check could not be accepted as conclusive without fingerprints. In addition, it was highly unlikely that our criminal records would be checked as a result of a telephone call requiring an expedite search of our indices for a security-type clearance. Dr. Lilly was informed that this matter would receive an immediate and intensive investigation and if the FBI was at fault we would certainly rectify our error; however, it was not believed that such a mistake had ever taken place and it was strongly believed that his informant in the matter had furnished him with false information. Dr. Lilly has departed Washington and left no forwarding address at his hotel, the Hay-Adams. We investigated Under Secretary Treasurer Baird in 1957. He was a prominent banker of St. Paul, Minnesota, and the investigation was highly favorable.