Canada espionage case (2-15-46)

Message from the Prime Minister of Canada
February 15, 1946

Information of undoubted authenticity has reached the Canadian Government which establishes that there have been disclosures of secret and confidential information to unauthorized persons, including some members of the staff of a foreign mission in Ottawa. In order to make possible the full investigation which the seriousness of this information demands, the Government has appointed Mr. Justice Taschereau and Mr. Justice Kellock of the Supreme Court of Canada to act as Royal Commissioners to hear evidence and to present a report which will be made public. The commissioners have appointed as their counsel Mr. E. K. Williams, K.C., of Winnipeg, Mr. Gerald Fauteux, K.C., of Montreal, and Mr. D. W. Mundell of the Department of Justice; the Commission has already commenced its investigation, which is proceeding in camera.

Upon the application of counsel, and having regard to the serious nature of the evidence already adduced before the commission, the commissioners recommended counsel to apply to the Minister of Justice for orders for the interrogation and detention for that purpose of a number of persons known or suspected to be implicated. This action has been taken today. The persons involved include some now employed or who have been employed in a number of departments and agencies of the Government.

It is the intention of the Government that, after the report of the Royal Commissioners has been received, prosecution will be instituted in cases in which the evidence warrants it. It would not be proper at this stage to make a more complete statement or, in particular, to make public the names of those concerned. Some of them appear to have been far more deeply and consciously involved than others. Some will probably be found to be more or less innocent instruments in furthering activities much more serious than they may have imagined. Obviously, the whole matter should be treated with caution and reserve, pending the time when it will be possible to issue a fuller statement. Until the investigation by the Royal Commissioners has been completed the case remains sub judice.

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The Gazette (February 16, 1946)

OTTAWA PROBES INFORMATION LEAK TO FOREIGN POWER
22 men detained; two Royal Commissioners named to investigate affair

Details not disclosed; authentic word received of secret data revealed by employees of government

NEW YORK (CP, Feb. 15) – An Associated Press dispatch from Ottawa tonight said Royal Canadian Mounted Police, striking suddenly, detained 22 men today as the government launched an investigation into disclosure of “secret and confidential information,” authoritatively reported to concern atomic energy, to members of a foreign mission in the Canadian capital.

The dispatch said Prime Minister Mackenzie King announced appointment of two Royal Commissioners to head the investigation some hours after police made early morning raids on the homes of present or former employees of Canadian government departments and agencies. Officials said they were certain they could place serious charges against at least 12 of the men taken for questioning.

Some, the dispatch continued, were known to have been employed by the National Research Council.

The government, it was believed, will announce officially soon the name of the country involved so that foreign missions of other countries will not be embarrassed.

OTTAWA (CP, Feb. 15) – Striking swiftly and silently, Royal Canadian Mounted Police today detained an unspecified number of persons as the government launched an inquiry into disclosures of “secret and confidential” information – possibly concerning atomic power – to members of a foreign mission in this capital.

The investigation broke on this startled city late today in an unheralded announcement by Prime Minister Mackenzie King, which also disclosed the appointment of two Royal Commissioners, Mr. Justices Robert Taschereau and R. L. Kellock of the Supreme Court of Canada, who already have begun a secret inquiry.

Mr. King said the government had received “information of undoubted authenticity” which established there had been disclosures of “secret and confidential information to unauthorized persons, including some members of the staff of a foreign mission in Ottawa.”

While no official information was available as to the identity of the country involved, it was reported by authoritative sources the country was Soviet Russia. At the Russian Embassy, where Ambassador George N. Zaroubin was reported to be in the Soviet, available officials said they had not heard of the announcement and did not wish to comment.

Mr. King’s 350-word announcement said the commissioners had recommended the taking out of orders for the “interrogation and detention… of a number of persons known or suspected to be implicated,” and added they included present and former employees in a number of government departments and agencies.

The statement did not disclose the names of those detained, nor indicate where they were taken into custody. However, it was known yesterday that a group of RCMP constables left the capital suddenly on an undisclosed mission.

Mr. King said the government intended to prosecute those concerned in cases where it was warranted by the evidence. Some appeared to have been “far more deeply and consciously involved” than others, who probably would be found to me “more or less innocent instruments in furthering activities much more serious than they may have imagined.”

*Charges not specified

It was not immediately clear what charges would be laid but if they were charges of treason the sentence likely would be death. The seriousness of the inquiry was emphasized in the appointment of two Royal commissioners to conduct it.

The announcement of the inquiry stirred immediate speculation the “secret” information concerned atomic energy, the key to which is held by Canada in partnership with Britain and the United States and the source of which – the rare element uranium – is mined in the Dominion.

Those long familiar with the capital scene said it was the first case they could recall of espionage involving Canadian government employees and foreign missions here.

Mr. King said the Royal commissioners had been appointed to make possible “the full investigation which the seriousness of this information demands,” and added:

“Upon the application of counsel, and having regard to the serious nature of the evidence already adduced before the commission, the commissioners recommended counsel to apply to the Minister of Justice for orders for the interrogation and detention for that purpose of a number of persons known or suspected to be implicated.

“This action has been taken today. The persons involved include some now employed or who have been employed in a number of departments and agencies of the government.

“It is the intention of the government, that, after the report of the Royal commissioners has been received, prosecution will be instituted in cases in which the evidence warrants it,” the announcement added.

“Obviously the whole matter should be treated with caution and reserve, pending the time when it will be possible to issue a fuller statement. Until the investigation by the Royal commissioners has been completed the case remains sub judice.”

The statement said the commission, conducting an inquiry in camera, was appointed after “information of undoubted authenticity had reached the government about the disclosures.” The appointment was made to “make possible a full investigation which the seriousness of this information demands.”

The commissioners have appointed as their counsel E. K. Williams, K.C., of Winnipeg, Gerald Fauteux, K.C., of Montreal, and E.W. Mundell of the Department of Justice.

The statement gave no indication where the persons detained were taken into custody, or where they were being held for questioning.

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Russia is named principal in atomic bomb intrigue

Major and minor government employees reported involved – Soviet agent said to have been allowed leave Canada with data – Truman and Bevin slated taken into consultation by Prime Minister King – Conflict alleged between Justice and State Departments in United States and Dominion
By Drew Pearson

WASHINGTON (Feb. 15) – Prime Minister Mackenzie King’s announcement in Ottawa today that highly confidential state secrets have been disclosed to a foreign power touches off the most sensational story of espionage and intrigue since the end of the war.

I am able to reveal its amazing details.

The foreign power is Russia.

Involved are both major and minor employees of the Canadian government – one of the three powers which guard the secrets of the atomic bomb.

High Canadian officials had been trying for weeks to make up their minds whether to hold a public trial of the Canadians charged with conspiring with the Soviet government.

Sensational evidence regarding these officials came to light when a Russian agent in Canada was about to be transferred back to Moscow.

He gave himself up to Canadian authorities.

One day after he was taken into protective custody by the police, his room was entered, presumably by other Soviet agents, and made a shambles.

Before Prime Minister King made the decision which resulted in today’s announcement, he came to Washington and discussed the entire matter with President Truman.

Later, he referred it to Foreign Minister Bevin in London.

He asked Bevin whether prosecution of the Canadians involved would embarrass British relations with Russia.

Bevin replied that the trial was a police matter involving the safety of the realm, and for the Canadian government to proceed.

The Russian agent taken by the Canadians has given the names and locations of about 1,700 other Soviet agents operating not only in Canada but also in the United States.

He has put the finger on certain officials inside both the American and Canadian governments as persons cooperating with the Soviet.

He has also named certain American labor leaders, including some in New York City.

Photostats showing payments made to U.S. and Canadian officials have even come to light.

Serious secret differences inside the U.S. government have resulted from these revelations, with the State Department anxious not to disrupt Russian relations, but the Justice Department anxious to arrest and prosecute.

One Russian agent named Shimishenko was negotiating for the purchase of the blueprints of an American jet-propelled plane.

The FBI detected him, proposed arresting him. After considerable internal debate, the State Department ruled against the arrest, Shimishenko sailed with wife and child January 6.

He did not get the blueprints, found in Bremerton, Washington. He not only had plans of the atomic bomb, but samples of the metal from which the bomb is made.

U.S. agents were covering him, all ready to make an arrest, but the State Department ruled otherwise.

The agent sailed for Russia. It’s hard to believe, but he took his atomic information with him.

State Department officials make no comment, but apparently they figure that seizing a Russian agent was less important than upsetting the diplomatic applecart with Russia; also that the Russians probably had the atomic bomb already.

This confronts the USA with the most serious foreign-relations crisis since Pearl Harbor. One of our major Allies has been caught attempting to seal military secrets and undermine American officials.

The British also maintain agents in the U.S., but most are registered with the Justice Department and others operate peacefully, though sometimes very effectively.

In other words, British agents operate to win American friendship, not to buy military secrets. They want to put us in their corner for the Empire’s eventual showdown of strength with Soviet Russia. … They consider that showdown unavoidable. A lot of other people, including this columnist, don’t agree.

All of this, however, illustrates the basic difference between the friendship of the British and American people and the unabridged void between the American and Russian people. It’s our greatest failure of the war – in fact, of the last two decades. We have failed miserably to get acquainted with the Russian people. Instead, we’ve left all our cards in the hands of Joe Stalin.

There can’t be any serious trouble between the British and American people. We know each other.

The opposite is true in Russia. The Russian people can be led into war, blindly, without knowing what it is about… they are not permitted to read American newspapers, hear American radio programs or meet American visitors.

They live in a vacuum as far as American cultural relations are concerned.

The Russian people are fine people. Whenever American troops come into contact with them, both sides like each other. But contacts to get acquainted are studiously avoided by Moscow.

This puts the military Communist clique which rules Russia in the same dangerous position as Hitler. He could take his country into war almost at all. So can Stalin.

It also emphasizes our greatest wartime error. For, while we gave the Russians tanks, airplanes and munitions, we did not insist that American good-will go with it.

They insisted that their pilots fly U.S. lend-lease planes from Alaska over Siberia. We yielded. No American pilot was permitted to fly over Russian territory.

They sent their drivers to pick up American trucks in Iran. No American truck-driver could enter Russian territory.

They wanted our goods but not the danger of rubbing shoulders with American democracy… and when we finally established two air bases on Russian territory so our bombers could rest one night before flying back over Poland, the Russians suddenly, without warning, ordered us out of these bases.

As far as the Russian people were concerned, both countries fought the war in a vacuum.

Today, this vacuum has become worse, not better. Russians are permitted to enter this country almost at will, but not even an American orchestra can enter the Soviet Union without having every drummer and saxophone player scrutinized for months, and even then probably refused a passport. Some of this is the fault of the policy of isolating Russia. We are now paying for that mistake. We are reaping a 17-year harvest of suspicion.

But if this suspicion is not broken down, if the Russian people are not permitted to understand that we are peaceful and friendly, the British will be proved right. Another war will be inevitable. That is the biggest problem facing the State Department. So far nothing has been done about it. The Canadian disclosures, however, may force a showdown.

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Bracken approves action

OTTAWA (CP, Feb. 15) – Progressive Conservative Leader John Bracken in a brief statement tonight “commended” the government for its action in arresting a number of government employees for disclosing information to members of a foreign mission in Ottawa.

Mr. Bracken said the Prime Minister’s “statement will come as a great surprise to the Canadian people.”

“From the evidence the government apparently has in its possession, it is to be commended for the action it has taken to get to the bottom of a situation which cannot help but be of grave concern to us all at this time,” he added.

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Prosecutions to follow inquiry if evidence warrants such step

By F. C. Mears, Gazette resident correspondent

OTTAWA (Feb. 15) – Sensational disclosure of leaks by present and past members of the Civil Service of “secret and unauthorized” information to “unauthorized persons, including some members of the staff of a foreign mission in Ottawa,” is indicated in a cryptic announcement today from Prime Minister Mackenzie King.

Russia is said to be one of the countries involved.

That more than one foreign power may have been the recipient of information through unauthorized “leaks” was indicated by an authoritative source tonight. In some cases where Canada was supplying materials to Allied powers, the recipients insisted on having their agents and inspectors in the factories where such materials were produced. It is believed the leaks started at this source, and spread to include employees of at least two government departments, one of them the Department of Munitions and Supply.

The number of persons detained was reported late tonight to be at least 12, with more expected to come.

These members of the Civil Service have been detained and will be questioned before the Royal Commission named by the government to take action, consisting of two members of the Supreme Court of Canada, Justice Robert Taschereau and Justice R. L. Kellock, and these have named as their counsel E. K. Williams, K.C., of Winnipeg, Gerald Fauteux, K.C., of Montreal, and D. W. Mundell of the Department of Justice in this city.

It was learned tonight that at least one of the counsel engaged by the Royal Commissioners has been making investigations in this city for the past month on instructions from the office of the Prime Minister.

No time is being lost in getting to the bottom of the situation, for it was made known by the Prime Minister that the Royal Commissioners had today begun their investigation. It was also declared by Premier King that until the Royal Commission completes its inquiry, the case remains sub judice, which means that no one is permitted to speculate or to publish reports as to those in the public service who are involved.

The text of the announcement from the Prime Minister follows:

“Information of undoubted authenticity has reached the Canadian Government which establishes that there have been disclosures of secret and confidential information to unauthorized persons, including some members of the staff of a foreign mission in Ottawa. In order to make possible the full investigation which the seriousness of this information demands, the Government has appointed Mr. Justice Taschereau and Mr. Justice Kellock of the Supreme Court of Canada to act as Royal Commissioners to hear evidence and to present a report which will be made public. The commissioners have appointed as their counsel Mr. E. K. Williams, K.C., of Winnipeg, Mr. Gerald Fauteux, K.C., of Montreal, and Mr. D. W. Mundell of the Department of Justice; the Commission has already commenced its investigation, which is proceeding in camera.

“Upon the application of counsel, and having regard to the serious nature of the evidence already adduced before the commission, the commissioners recommended counsel to apply to the Minister of Justice for orders for the interrogation and detention for that purpose of a number of persons known or suspected to be implicated. This action has been taken today. The persons involved include some now employed or who have been employed in a number of departments and agencies of the Government.

“It is the intention of the Government that, after the report of the Royal Commissioners has been received, prosecution will be instituted in cases in which the evidence warrants it. It would not be proper at this stage to make a more complete statement or, in particular, to make public the names of those concerned. Some of them appear to have been far more deeply and consciously involved than others. Some will probably be found to be more or less innocent instruments in furthering activities much more serious than they may have imagined. Obviously, the whole matter should be treated with caution and reserve, pending the time when it will be possible to issue a fuller statement. Until the investigation by the Royal Commissioners has been completed the case remains sub judice.”

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RCMP raid wrong dwelling, and gosh-awful fight develops

OTTAWA (CP, Feb. 15) – A case of mistaken identity produced a riotous rough-and-tumble fight early Friday morning as Royal Canadian Mounted Police raided an apartment building on Elgin Street here in the round-up of suspects in the espionage probe now under way in the Capital.

An innocent government employee was considerably roughed up and raised such a commotion that Ottawa city police were called in before RCMP realized the man they sought was asleep next door. There they arrested a man and confiscated files and documents.

The civil servant gave the following account of the raid:

“It was just after six o’clock – still pitch black – when I heard a banging at the apartment door. I got up and groping my way to the door, opened it a couple of inches.

“Somebody stuck a big black boot in the opening and threw his shoulder against the door. There were three big men standing behind him, and one of them shouted. ‘We’re coming in – Open up wide.’”

“They came in all right. I couldn’t hold them off and, not knowing what the score was, I stood there slugging. I didn’t know but what they were strongarm holdup guys.

“My wife came running out of the bedroom and I yelled at her to phone the police.”

Taking over the story, she said she ran to the phone.

“But, before I could even begin dialing, one of the men put his big hand down hard on the cradle and said ‘there’ll be no phoning on this case.’”

“Believe me,” continued the victim, “there was one godawful uproar. We were battling all over the living-room floor, and my wife and the girls were screaming their heads off.

“Through the door to the hallway, I saw one of the neighbors standing in his dressing-gown and I yelled at him to call the police.”

The neighbor did, managing to complete the call before one of the police rushed in and broke the connection.

By this time everybody was winded and, in the momentary lull, the raiding squad leader informed the bewildered civil servant that they had come with warrants for his arrest and for a search of the apartment.

“I asked him what for,” said the wife, “and he turned to my husband and said ‘you’re [__] aren’t you?’”

“Hell no! I told him,” the husband answered. “That man lives next door.”

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Editorial: A disturbing announcement

There have been few more disturbing statements in this country than that issued yesterday by Prime Minister Mackenzie King, disclosing that a Royal Commission has been appointed to investigate charges concerning a number of Canadian citizens, including several in the Canadian Civil Service, who are suspected of having imparted “secret and confidential information to unauthorized persons, including some members of the staff of a foreign mission in Ottawa.”

The serious view which the government takes of the matter is seen in the fact that the Royal Commission is composed of two justices of the Supreme Court of Canada, who have named eminent members of the Canadian bar as their counsel. Evidence of the serious view which these commissioners, in turn, take regarding the matters before them appears in their recommendation to counsel to apply to the Minister of Justice for orders to interrogate and detain those persons which, in the words of Mr. King’s announcement, are “known or suspected to be implicated.”

Mr. King states, quite properly, that until the Commission completes its enquiry, the case remains sub judice, and that no one is permitted to speculate or to publish reports as to those in the public service who are involved. At the same time, now that the spectacular announcement has been made, there will be inevitable and largely uncontrollable speculation, not only as to those involved, but as to the nature of the secret and confidential information they are suspected of having disclosed.

It is therefore in the highest degree imperative that the commissioners, and the various agencies of government that may work in co-operation with them, proceed to their investigations with promptness and vigor, in order that the circulation of rumors may, at least in some measure, be limited by the issue of more specific statements.

Of more importance than the control of speculation, is the control of the anxiety that will be raised in this country, and amongst our allies, with regard to the possible impairment of our position which the disclosure of secret information may have caused.

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The Pittsburgh Press (February 16, 1946)

Canadian names Russia in spy plot

Radar believed goal of foreign agents

OTTAWA (UP) – The Canadian government marshaled its forces today against an espionage ring which has leaked “secret and confidential” information to a foreign government, named by a cabinet ministry as Russia.

Reconstruction Minister C. D. Howe flatly denied to the United Press that atomic bomb knowledge was involved. Best available sources suggested thar secrets of radar, especially as developed for Arctic flying and for defense against possible air attack from the Arctic, might have been the objective of the espionage ring.

Employees held

Royal Canadian Mounted Police held an undisclosed number of present and former Canadian government employes for investigation by a two-man royal commission named by Prime Minister W. L. Mackenzie King.

“What nation is involved?” the United Press asked a cabinet minister who insisted that his name not be used.

“Obviously it is Soviet Russia,” he replied.

U.S. kept informed

The United Press learned that the Canadian arrests were made only after the U.S. government had decided that a joint Canadian-American move against the ring once considered, might be unwise.

In Washington, reliable sources said the U.S. government was being kept informed of the Canadian moves.

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The Pittsburgh Press (February 17, 1946)

Russia linked to espionage ring in Canada

Arrests begun; radar believed spy target

OTTAWA (UP, Feb. 16) – A Cabinet minister identified Russia today as the country to which an international espionage ring reported “secret and confidential information of the Canadian government.”

The Royal Canadian Mounted Police, acting in strict secrecy, rounded up 12 present and former government employees and held them incommunicado in the police barracks at Rockliffe, a suburb in Ottawa. The government intended to have the full details of their widespread espionage before making definite charges.

Reports from Edmonton, New Brunswick, said three men had been arrested there.

Denies A-bomb involved

Reconstruction Minister C. D. Howe denied that the atomic bomb secret was involved. Authoritative sources suggested radar was the most likely objective of the ring, especially as it has been developed for Arctic flying and for defense against possible air attack from the Arctic.

Among prisoners were believed to be several former Royal Canadian Air Force Ferry Command employees.

Government sources tied in Russia through an agent named Shimishenko who, they said, operated both here and in the United States.

Agent back in Russia

A failure in liaison between Canadian security agents and the U.S. Federal Bureau of Investigation was blamed for the recent return of Shimishenko to Russia from the United States. Canadian police, it was said, had expected the FBI to arrest Shimishenko “at an opportune time.”

In Washington, State Department and FBI officials refused to comment. Reliable sources said there has been close cooperation between the U.S. and Canada on hemispheric security.

Canada has taken a leading role in the development of radar because of the burden of defending its vast northern territories. Yesterday a Canadian Army unit, with American observers, pushed off into the frozen north from Fort Churchill in “Operation Muskox,” one of the primary purposes of which is to test radar’s use in defensive flying.

U.S. interest shown

There has been much interest in the possibility of neutralizing by radar warnings atomic bomb attacks, which might conceivably be made over the North Pole. U.S. interest in this was indicated by a recent visit to Ottawa by a U.S. delegation headed by Army Chief of Staff Gen. Dwight D. Eisenhower.

In Washington, Rep. John Rankin said that a “Communist spy ring” uncovered in Canada “extends throughout the United States and is working through various Communist front organizations.” The White House revealed that President Truman was told about spy activities in Canada last November when Canadian Prime Minister W. L. Mackenzie King was here.

Mr. Rankin, a member of the House Committee on Un-American Activities, said the committee is “on the trail” of the Communist spies. “This country, like Canada, is in grave danger from the enemies within our gates, some of whom are on the federal payroll,” he said.

The Gazette (February 18, 1946)

CANADA’S EXPOSURE OF RED FIFTH COLUMN STIRS WORLD
Exemplary action; New Hampshire senator calls for similar course in U.S.

FBI long on spy trail! White House admits matter, discussed last November by Prime Minister King

WASHINGTON (CP, Feb. 17) – The United States, acutely conscious of the power of atomic energy, distrustful of Soviet Russia, was intensely aroused tonight over Ottawa’s disclosure of “leaks” of secret information to a foreign power, and evidence that Russia was building in the Dominion a network of espionage.

Officially, secrecy as tight as any applied in wartime prevailed among government departments in Washington. But outside of the government and its agencies speculation was rampant as Canada announced appointment of a royal commission to inquiry into release of “secret and confidential” information to a foreign mission in Ottawa.

From Senator Styles Bridges, influential member of the Senate foreign relations committee, came a call for the United States to display “the same dispatch and courage Canada has shown.” The New Hampshire Republican said that if the “leak uncovered in Canada” leads into this country, it should be investigated.

It was understood that the United States – and Great Britain – were following Ottawa’s moves with quiet approval. Too, there was relief in some quarters that one government had taken the initiative in bringing into the open a situation that in recent months has provoked newspaper columnists and editorial writers in the United States to hot criticism of alleged governmental laxity.

These writers have charged that Soviet Russia maintains in the United States a network of spies – charges that The Canadian Press learned in Ottawa Saturday are true insofar as they apply to Canada. An unimpeachable source in the Canadian capital termed the Russian spy service “almost a fifth column.”

It is known that the Federal Bureau of Investigation has been watching the operations in this country and a number of foreign agents, including Russian nationals. But the FBI, it is reported, received orders from the state department and the White House to go slowly in the interest of international relations at a critical time in world affairs.

Drew Pearson, noted Washington newspaper columnist, has charged that a Russian who surrendered to Canadian authorities gave the names of some 1,700 Soviet agents operating in Canada and the United States. The New York Journal-American has named one Alfred Adamson as an alleged Russian agent at large in the United States attempting to gain knowledge of atomic-energy experiments.

FBI refuses comment

But the reply today from the FBI to inquiries along these lines and of all aspects of the Canadian developments was: “We have absolutely no comment.”

Official secrecy was the watchword in all government departments here. The state department unbent sufficiently to say that it had previous knowledge of the intentions of the Canadian government to launch the inquiry, but would go no farther. The war, navy and justice departments said nothing.

The White House, too, was silent until Saturday afternoon when it disclosed that Canada’s planned investigation was discussed last November at the time Prime Minister Mackenzie King was here for the atomic-energy discussions with Prime Minister Attlee. It was added: “The President has been kept fully informed more recently through the State Department.”

It was considered certain there would be demands in Congress for a full investigation of the activities of foreign agents in the country. Such demands have been voiced many times in the past, but with Canada providing a “break,” proponents of such a move have been provided with potent ammunition.

Senator Bridges, in his statement of commendation of Canada’s action, declared: “If there is any hesitancy by anyone in the state department in this matter they should be brought before the foreign relations committee and made to explain. If any official of the government stands in the way of prosecution of anyone guilty of treasonable conduct, he should be dealt with summarily.”

To say that the United States this week-end treated the Ottawa developments sensationally would be to understate the case. Across the country the story was front-page, headline news. The anti-Red press such as the Hearst trans-continental string of papers, almost before any mention of Russia appeared in an Ottawa-dated story, leaped out with flaring headlines strongly anti-Communistic.

The story also provided the Journal-American with an opportunity to mention anew the alleged anti-American activities of the mysterious Adamson. The newspaper said that last December 3 it “exposed” Adamson as seeking information on atomic energy. Adamson, it added, now has disappeared. It continued:

“Adamson skipped from his hotel room three weeks ago so hurriedly that he left behind some of his clothing and neglected to pay a number of bills. He had been under surveillance of FBI experts for more than two years, and their desire to arrest him had been balked several times by the state department dictates.”

Thirty-six hours after the first “break” from Ottawa, the Journal-American in its Sunday edition devoted an eight-column headline to the continuing developments: “Canada bares Red spy network.”

Equally lurid was the play given by Washington papers. “Canadians sold secrets to Red spies is report,” flared the Washington News. “Canada acts to plug atom leak to Russians after arrest of 22,” said the Evening Star Saturday.

The Times-Herald, usually a Red baiter – and generally anti-British and strongly nationalistic – was more reticent. Its headline was: “Canada arrests 22 in plot to steal atomic power secrets – some suspect Russia.”

Unofficially, it was learned that there is no doubt in government circles here that the Canadian action is concerned with secrets associated with atomic-energy development in which Canada, the United Kingdom and the United States co-operated closely during the war.

Attack from Arctic

But also mentioned were other possible subjects of a seeker after information, such as radar. Canada knows much about radar and its marvels, and it was said that this war-born electronic miracle could be developed for defence against air attack upon Canada from the Arctic and, if so, would be a prime subject for espionage.

But atomic energy remained the chief subject of such speculation. A member of the Senate atomic committee who declined use of his name said that the committee was told recently in executive session that “some people are doing their damnedest” to get inside information on the atomic secrets in the United States and Canada.

This member said Canada possesses some secrets which are “extremely important” – and he repeated the phrase “extremely important” – in relation to the atomic bomb. He said these are chiefly chemical formulae worked out by Canadian scientists.

Thus were the reverberations of the Ottawa announcement spreading hike ripples in a quiet pool disturbed by a cast stone. But there were more:

Reports appeared in many newspapers that the homes of alleged Soviet agents taken into custody by Canada in its investigation of the current plot had been entered by other Soviet agents before the authorities could obtain information. Secret papers, presumably, thus did not fall into the hands of the police.

The projected Canadian crackdown was said to have been the chief purpose of Mr. King’s visit to Washington last November, aside from any top-level discussion of atomic energy (Unconfirmed reports that Mr. King had made a secret visit to President Truman before making Friday night’s announcement were denied by the White House).

Foreign Secretary Bevin of Britain was said to have agreed with Mr. King’s actions in advance, despite the certain embarrassment in international relations.

Newspaper columnists pulled out all the stops on their claimed “inside information” as to Russia’s alleged unfriendly moves in the United States. Mr. Pearson charged that one agent not only sailed for Russia without State Department intervention but also took with him valuable atomic information that the FBI knew he had but was prevented from recovering.

State Secretary Byrnes of the United States was reported to have told Mr. King that Canada pursue an independent course, and that he took this position despite pressure from the justice department and other government agencies.

A number of FBI agents were reported here to have gone to Ottawa to aid the Royal Canadian Mounted Police in its investigation. The justice department had nothing to say regarding this.

It was certain that the weekend developments were causing concern in the state department. Anti-Communist newspapers and organizations have been so outspoken in the United States since the war’s end that their activities have disturbed relations with Russia. The policy of the department has been to play down everything of that nature.

U.K. PRESS AROUSED
Newspapers put flare headlines on Canada’s spy crisis

Interpretations vary; Scotland Yard denies reports of Canadians in Britain being questioned in matter

LONDON (CP Cable, Feb. 17) – Sunday newspapers today gave prominent front-page display to disclosures in Ottawa that Russia is maintaining an espionage organization in Canada, and that arrests have been made there in connection with leakage of information to a foreign power.

Most newspapers carried the story under flaring headlines such as that in the Sunday Pictorial “Russia named as spying on atom secrets.”

The Sunday Times said: “Russians accused of spy ring in Canada.” News of the World said: “Spy ring sought Canada’s radar secrets.” The Sunday Chronicle said: “World spy ring: more arrests. Agents seek secret of Empire radar.”

The Canadian Press said in an Ottawa dispatch Saturday it had learned from an unimpeachable source that evidence gathered by counter-espionage squads showed Russia gradually was building up a large spy service in Canada – “almost a fifth column.”

Another Ottawa dispatch said detention of suspects in Canada’s first major spy probe was continuing and was spread through various parts of the country.

News of the World said: “The widespread spy ring unmasked in Canada had international ramifications far beyond the boundaries of Canada. Its principal objective in the Dominion was to discover the details of Canada’s defences against a possible attack from the Arctic, which are at present being tested in Operation Muskox by the Canadian Army.”

The Sunday Chronicle said Scotland Yard at the request of the Canadian government “has already taken action and counter-espionage agents have begun questioning Canadians stationed for some time in the home countries.”

However, the Press Association issued a bulletin to newspapers and agencies, saying: “There is no truth in the statements that Scotland Yard has been asked to assist in investigations into reported leakages in Canada of secret information. The Yard has not been called in in any shape or form.”

A Scotland Yard spokesman said, “We know nothing of the case.”

The Sunday Times declared: “The spy ring uncovered in Canada is only the fringe of a world-wide organization” and added there are indications Russia is building up a large intelligence service in Canada.

The Sunday Pictorial said mounted police could not touch the man alleged to be the spy chief – Russian-born Alfred Adamson now in an American Midwest town.

Reynolds News built up the story of “a world-wide spy ring including hundreds of scientists, mathematicians and the like” who were said to be gathering secrets for electronically-controlled atomic rockets.

Canadian officials in London were unwilling to comment on the situation, and indicated they had been instructed any statements must come from Ottawa. However, it was obvious that full reports have been sent here, and one informant said it was a safe assumption that the British government had been kept informed.

It was impossible to confirm definitely that Foreign Secretary Bevin was consulted personally but one source said: “That would be a logical assumption since the United Nations have been in session here and the effect on relations with the foreign power involved would necessarily be taken into account.”

Dana Wilgress, Canadian ambassador to Russia, left London Saturday for Moscow via Stockholm, but it was said today his return to his post had nothing to do with the Canadian disclosures but was normal in view of the end of the United Nations deliberations at which he was a Canadian delegate.

Communists and women held; some from Montreal in spy probe

By a Gazette staff reporter

OTTAWA (Feb. 17) – Members and supporters of the Labor Progressive Party, former Communists who have returned to the party line of pre-war days, are reported authoritatively here tonight to be under detention in connection with the espionage ring now under investigation by a Royal Commission assisted by the Royal Canadian Mounted Police.

Members of the United States Federal Bureau of Investigation are known to be in the Canadian capital as observers of the investigation into the leaks of confidential and secret information concerning the war uses of atomic energy including the atomic bomb.

It was reaffirmed tonight in usually reliable circles that atomic energy was the stake for which Soviets played, and which brought about the detention of a number of civil servants reputed to be “at a high level.”

The number of those detained is reliably claimed to be slightly more than a dozen including several women.

No persons above department head levels are reported to be detained for questioning by the Royal Commission. This was assumed to mean that deputy ministers and their close assistants were not involved.

It was not clear, however, into what categories the heads of research branches fall. Some of these “intellectuals” and scientists have known “leftist tendencies,” it was stated.

From siftings of information obtained during the day it appeared probably that Canada’s fearless investigation of the espionage ring would result in few Canadians being shown to have sold the country’s secrets for money.

Avid seeking for approbation and approval by foreign scientists and recognition, as well as social advancement in their own circles or in foreign countries, some of them in the Western Hemisphere, is believed to have caused those involved in the first direct accusation made since hostilities ended against Soviet Russia to become suspected traitors.

Radar secrets, the mechanics of the Muskox Exercise or the weather forecasting facilities of the Far North were as nothing compared to the mystery of the atomic bomb, it is claimed here.

Present indications point to more detentions in various parts of the country as soon as the Royal Commission hears more evidence and orders new searches and sequestrations.

Montreal has already given its quota to the number of persons already detained, it was learned from reliable sources. More arrests may follow there, it was rumored.

Known officials of the Royal Commission have declined to comment upon its activities and present indications were that any further public statements such as those in the past would continue to be made at the highest government level.

Dominion-wide raids net fifteen; Toronto, Edmonton men quizzed

By F. C. Mears, Gazette resident correspondent

OTTAWA (Feb. 17) – A Russian spy ring of startling extent is being uncovered in this country, and already RCMP raids in widely separated localities have resulted in the holding of at least 15 persons whose prosecution will come after the completion of the Royal Commission inquiry, and the number of those in Ottawa, Toronto, Edmonton and other cities who are being questioned is rapidly growing.

Almost melodramatic was an early morning raid in this city on Saturday when RCMP officers entered an apartment building on Elgin Street. At the outset they broke into the wrong apartment and roused the occupants causing considerable consternation, the women fearing it was a gangster hold-up. The officers, discovering their mistake, beat a hasty retreat and brusquely advised the victims of the mistake to just forget it.

Then, finding the right apartment, it is stated they bagged an RCAF officer, who in the later stages of the war is said to have been seconded to the Wartime Information Board and to have played a part in what was called psychological warfare. It will be recalled that in the later stages of the war WIB was responsible to the office of the Prime Minister.

Still another sensational aspect is the widely reported more or less successful efforts of those working for the Russian cause to get access to offices in the East Block, the building which houses the offices of the Prime Minister, and this was one of he developments that impressed the Prime Minister and the government with the astonishing boldness and determination of what has been shown to be a thoroughly organized spy ring.

The development and uses of atomic or nuclear energy and also of radar have been the unquestioned quests of these now the target of RCMP raids and of the Royal Commission. Reconstruction Minister C. D. Howe, before he left for Western Canada, did not flatly deny that atomic energy was involved. He said that atomic developments so far as his department was concerned, were not “directly” involved. But there is little doubt that the Russians have been particularly interested in what has been done at the Port Hope refinery.

What is regarded as another probability is that the sensational blow-up over the Eldorado Company and the probe into charges that certain employees of officials of that concern were arranging for the disposal of at least half a million dollars’ worth of the product to outsiders are related to the present disclosure of a Russian spy ring bent con tapping the secrets of manufacture in Canada.

Bared by broadcasts

It was also hinted today that radio broadcasts of at least two weeks ago by Drew Pearson in Washington, who first let the world know that powerful subversive agents were at work on this continent, had something to do with speeding the setting up of the Royal Commission here. Its establishment was inevitable, because the probe really began here late last year, but the fact that fragmentary disclosures had been made on the air made it apparent in Ottawa that official action could no longer be delayed, and that the public must be told that determined action had already been taken.

Now that a Royal Commission has been set up to make a searching inquiry and that the RCMP are making raids throughout the country it is being recalled in official circles here that for months past there has been a disproportionately large staff maintained by the Russian Embassy on Charlotte Street in this city. Its personnel far outnumbered that of the other large embassies, including the United States, France and the United Kingdom, some 90 persons being stationed here and elsewhere throughout the country.

Disgust, if not anger, has been caused in official circles over the astounding boldness of those engaged in the spying job and of the Russian emissaries. What riles people here is that what has been done in the past few months on behalf of, or at the instigation of, the Soviet government has been in the face of the fact that Russia has been an ally of Canada in two world wars, not an enemy, and that all the time that Russia has been quite importunate in seeking material and even financial aid from Canada, its agents have been entering factories where Russian orders were being filled, and these agents have even penetrated into the East Block where are the offices of the Prime Minister.

It was only a few days ago that a Russian spokesman here let it be known that another Canadian export credit to Russia was now under negotiation. Then only last week Russia notified the United States it would attend the 14-power trade and tariff parley to be held at Washington this summer. The U.S. invitation had been left unanswered by Russia for weeks.

It is the international aspects of the spy ring disclosure that will cause increasing concern here, at Washington and at London. There is no doubt now that Britain’s foreign secretary, Ernest Bevin, during his lively clashes with the Russian spokesman at the UNO meetings concerning British troops in Greece was painfully aware of what was being discovered in Canada and the United States.

Washington was awake to the situation last fall when Prime Minister Clement Attlee, President Truman and Prime Minister Mackenzie Ring were conferring on the question of control of atomic energy and the preservation of its secrets. It is recalled that at the time of the Drew Pearson radio broadcasts two or three weeks ago, President Truman, answering a press inquiry, denied he had asked Prime Minister King to initiate action, but definite public action has been taken here since.

This will be the third occasion on which Canada has tangled with Russia. Early in the King administration of 1928-30, it was found that the Russian consular office in Montreal had been abusing privileges of the diplomatic mail bag and Prime Minister King was obliged to send a warning to Moscow.

Then soon after Prime Minister R. B. (now Viscount) Bennett took office in 1930 he placed an embargo on all Russian imports into Canada. That embargo, which came to stop the inflow of Russian coal into the central provinces, remained effective throughout the Bennett regime, but was lifted when Prime Minister King returned to office in 1936.

Atomic plans reach Britain

Scale drawings are for research at Harwell Airfield

LONDON (CP Cable) – The first scale drawings of the atomic energy research plant to be built at Harwell Airfield near Didcot, Berkshire, have arrived in Britain from Canada, the Daily Mail said today.

The paper added: “Because of the Canadian spy scare and the need for security, they were brought over by Professor J. D. Cockroft, director of the atomic energy station. He took time off from building a scale model of the station just outside Toronto.

“After the plans had been safely locked up, Prof. Cockroft returned to Canada immediately to finish the model. Whereabouts of the plans are known to only a handful of trusted government officials, and the place where they are being kept – it is not in London – will be under guard night and day.

“Meanwhile Sir John Anderson, chairman of the atomic bomb committee, strongly denied the rumored existence of an atom bomb in this country” and the paper quoted him as saying “nothing is further from the truth. There is neither a bomb nor a model of one.”

Commenting on the Canadian spy roundup, Prof. J. D. Bernal, who helped in development of the atom bomb, said here: “We would not have anything like we are having in Canada if we had a full exchange of scientific information. The slowness of sharing atomic energy is a major cause for continued and dangerously increasing tension in the world.”

Morning papers front paged the spy-ring story again, with the Daily Express headlining it thus: “Ottawa: Fifteen suspects are now held under close arrest. Atom spies: America wants inquiry.”

The News Chronicle headlined its account: “Mounties lead hunt in spy ring case.” The Daily Sketch headline read: “Spy ring hunted Arctic secrets. Mounties hold 25 atom suspects.”

CHALK RIVER PLANT AGAIN IN THE NEWS
Revelation of spy activities focusses new attention on atom enemy site*

Newsmen still barred; pilot plant 120 miles north-west of Ottawa one of Dominion’s most vital secrets

OTTAWA (CP, Feb. 17) – Disclosure of large-scale espionage activities in Canada has focused new attention on the Dominion’s atomic energy plant at Chalk River, Ontario, which remains one of the country’s most closely-guarded operations.

When development of the atomic bomb was announced last August 6, Munitions Minister Howe immediately disclosed that a large pilot plant was under construction at Chalk River, 120 miles northwest of Ottawa.

Disclosure by officials that a purported Russian espionage ring was interested in “everything a spy would be interested in,” makes it apparent that atomic energy was well up and probably at the top of the list of items on which the spies were seeking information.

Since August repeated efforts by newspapermen to have a look at the plant have been unavailing, but tomorrow the first press party is scheduled to inspect the town site of Deep River, 12 miles from the plant and laboratories.

Even to see the town built to accommodate the 1,500 people who moved into a Northern Ontario wilderness newspapermen must be accredited. The department’s invitation specified: “It is understood that those going on the tour will not be permitted entry to the Chalk River plant and laboratories.”

Thorium probed

Originally the plant was designed for the development of atomic energy from uranium, since then Prime Minister Mackenzie King has disclosed the laboratories are investigating the possibility of using thorium as a source of energy. Thorium has been rated second only to uranium, to which it is closely related, as a source but whether the thorium is being imported or is coming from a workable deposit discovered during the war and kept a secret has not been disclosed.

Just how well those secrets have been guarded is illustrated by the Chalk River development. For more than a year 1,300 construction workers and specialists labored to bring the unique plant into being. It is located near the deepest section of the Ottawa River and one of the deepest rivers in Canada – the townsite bears the name Deep River. The nearest town is Pembroke with a population of 11,500. From there bus loads of workers left every morning for “the job.”

Only a handful knew what the job concerned. Top men included mathematical physicists, chemists and engineers. The specialists knew only the part of the operation in which they were concerned. Mr. Howe visited the site for the first time in November and he later said it took him at least an hour to get past the various guards.

While the plant now is known to be engaged in work on various by-products which hold possibility of civilian use the place of the plant in the atomic bomb development of the United States, Britain and Canada still holds top importance.

A branch of the National Research Council is responsible for operation of the plant, described by one scientist as “second to none anywhere.” Total area taken over for the development was 10,000 acres west of Petawawa, Ontario, military camp.

Ottawa espionage probe hidden by thick, stone walls and silence

OTTAWA (CP, Feb. 17) – From the east and from the west the suspects came to town.

The Mounties worked long hours, gathering, escorting, sorting them out. Nobody outside did know exactly what they were doing, but they knew they were busy and there were lots of Mounties.

The crux of it all was the ninth floor of the Justice building and the only reporter who got to that floor left it swiftly with nothing but atmosphere. The atmosphere, he said, was “dripping with tension.”

Behind the walls of this Canadian capital, the official brains of the nation worked upon its first major spy probe. Suspects, Prime Minister Mackenzie King had announced, were being detained for passing information to a foreign mission.

It was a terrific thing. Sprawling, young, immature Canada had never seen anything like it. But it all went on behind walls, stone walls of official buildings and physical walls of official silence.

And in the streets…

Well, in the streets of this centre of the storm today … well, it was just another Sunday.

A reporter looked down Sparks Street and found himself looking down what might have been any one of 100 Canadian main streets on any one of 100 Sunday afternoons. The picture is too well known to need description.

A reporter betook himself to the East Block of the Parliament buildings, scene of the Prime Minister’s office, scene of the External Affairs Department that is one of the keys in this fantasy. It was a place of silence and loneliness.

A reporter called the home of Commissioner Wood, Canada’s No. 1 Mountie. His wife said he was out for a walk.

A reporter went to talk with a man who should know many things and the man talked of many things and none of them were spies.

A reporter talked to a Mountie’s wife and had to tell her the little he knew of what was going on. She hadn’t seen her husband for two days, hadn’t heard from him or of him.

A reporter went to church and the Roman Catholic priest recalled the thing that had come to pass and asked his flock to join in prayer that “nothing serious will happen.”

For the tens of thousands on the outside the difficulty was in realizing that anything serious had happened.

Forty-eight hours after the news first broke, it was still all being done behind walls.

And the walls were thick.

Russian Embassy maintains calm amid Ottawa spy ring hub-bub

OTTAWA (CP, Feb. 17) – Officials at the Russian Embassy here have retained their customary reticence amid the excitement which has followed reports that Russia is purported to be the foreign power concerned in the Canadian espionage inquiry.

In fact, the officials – if such is possible – have become more reticent. Newspapermen covering the diplomatic beat in Ottawa agree the Russian Embassy is noted for its sumptuous receptions and for the way officials in it give a systematic “brush-off” to minor and major inquiries.

The most recent inquiries to be turned aside have been in connection with the departure of the Russian ambassador, George N. Zaroubin, from Canada and with the statements by authoritative Canadian sources that the country fostering the spy ring in Canada was Russia.

Officials at the embassy said they had nothing to say about the statements by Canadian sources. They declined also to say anything about the movements of the ambassador. From one source it was learned Mr. Zaroubin returned to Moscow last December for his first visit since his arrival here in May 1944. This was not confirmed or denied.

Mr. Zaroubin, a tall, dark, athletic looking man in his 40s, has his headquarters in a large red brick building bluff overlooking the Rideau River. The outwardly cold looking building has been the scene of some of Ottawa’s most lavish diplomatic parties.

Even during the war years when most social invitations left the matter of dress to the guests, the Russian invitations generally called for the formal “black tie.”

The Russian diplomatic corps invariably wore the formal diplomatic dress of their country. Zaroubin wore a very ornate black suit trimmed with silver brocade.

Suites of rooms at the embassy were set aside for the parties, and in them were long tables of food and drink and numerous waiters to serve the guests. The Russian diplomats mixed freely and participated in conversations as long as it did not touch on political doctrines or require the divulging of any information on their part.

Mr. Zaroubin brought to Canada the popularity he enjoyed in Moscow where he was chief of the American section of the Soviet foreign office.

When his appointment to Canada was announced, a member of the foreign diplomatic corps in Moscow said of Mr. Zabourin: “We are glad to hear of his promotion but we hate to see him go. He was a good official with which to work.”

Most recent diplomatic lists show that members of the Russian diplomatic corps here include: M. Degtair, commercial counsellor; Nikolia D. Belokh-Vostikov, first secretary; Col. Nicolai Zaroubin, military attache, and Maj. Vasily M. Rogov, assistant military attache for air.

Ottawa Red embassy told staff involved

OTTAWA (Feb. 17) – The rounding up for detention and interrogation of persons suspected of having communicated secret and confidential information either directly or indirectly to members of the staff of a foreign mission here is still proceeding not only in Ottawa, but in several other centres.

It is understood that when Prime Minister W. L. Mackenzie King issued his statement on the case Friday evening, he sent copies not only to the press, but to all the eighteen embassies and diplomatic missions in Ottawa, and in a covering note to the Soviet Embassy, indicated that members of its staff were involved.

Ottawa to ‘clear air’ on spies in few days

OTTAWA (CP, Feb. 17) – An interim statement on the progress of the inquiry into the alleged Russian spy ring in Ottawa may be made within two or three days to “clear the air,” it was learned tonight.

It was understood government officials were studying the advisability of issuing such a statement in view of the number of unconfirmed rumors which have followed in the wake of Friday’s announcement about the existence of the spy ring.

There was growing belief in informed quarters Prime Minister Mackenzie King eventually would announce the name of the country involved, said by a high official here to be Russia. It was expected the official naming of the country would come in two or three weeks after the Royal Commission has sifted through the mass of evidence now being compiled and has reported to the government.

Soviet held too foxy to embroil embassy

OTTAWA (CP, Feb. 17) – A retired member of the First Great War British Intelligence Service tonight said he was certain no evidence gathered in the present espionage investigation would connect suspected persons with the Russian Embassy.

“From my experience,” he said, “I think you will find the agents had no contact whatsoever with the embassy, and probably worked through an independent organization which communicated directly to Moscow.

He said he would not be surprised if the headquarters of the clearing agency, if ever disclosed, would be found to be in Toronto, Montreal or perhaps New York.

“I’m sure it won’t be in Ottawa or in any spot where it could be linked in any way with Russian Embassy operations,” he said.