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DATE: August 3l, 1950 Mr, A. H. Belmor al FROM : C. H. Stanley: LAdd CleEs Glavin SUBJECT: INFOFMATION FURNISHED BY SENATOR Nichols. JOSEFH MCCARTHY.. RMATION CONTAINED tracy FURPOSE: DT. 08 To point out that the Loyalty Section is taking no action recormend that it be reviewed by the Accounting, Fraud, Selegtive Service and Civil Section of the Investigative Divisior BACKGPOUND: The Washington Field Office has furnished the Bureau with photostatic copies of the following documents received from Senator. McCarthy, (1) Letter dated 4-26-50 from) together with copies of a letter he forwarded to Fresident Trunan on dated 1-23-50, 1-5-50, (2) A letter to him fro. and (3) _A biographical summary concerning a Chinese national by the name of L In his letter to Senator McCarthy points out that a Chinese employee of the State Department in Hong Kong, China, This has acguired tremendous wealth during the past six months. resulted, according to from a scheme worked by State Department employees in Hong Kong of gaining unlawful entry for Chinese nationals into the United States for $l0,000 or $20,o0o. also alleged that a Taipeh, has been everything but helpful to the Yationalist Government of China and has made statements to the effect that the Communist Govermment would bs better for the Chinese people. j/ There is no disloyal information in the files of the Dureau that can be identified as pertaining to RECOMMENDATION: Due to the non-specific nature of the allegations regarding it recommended that no further action be taken by the Loyaly Section. It is suggested that this menorandum be forwarded to the Accounting, Fraud, Selective Service and Civil Section of the Investigative Division for ary action necessary regarding possibla plation of the paaaport and visa laws.. 2327? RECORDED SEP. 32 INDEXED