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December 8, 1951 MEMORANDUM FOR MR. MURPHY: Attached is a first rough draft of a memorandum on possible violations of criminal statutes by procurement agents of the Nationalist Government of China in the United States. It relates to a criminal investigation of certain alleged irregularities in procurement activities which was made by the Office of Special Investigations of the United States Air Force. It contains a skeleton summary of some of the findings made in that investigation. On the basis of later information which I have come across today, someoninor modifications will have to be made in the memorandum before it is put into final form. However, I am satisfied that there are several prima facio instances of violation of U. S. criminal statutes which warrant further investigation by a special prosecutor. There are several other incidents described in the last half of the memoranchum which indicate possible irregularities although they can not be called prima facie cases of criminal activity without further investigation. Also attached is a legal opinion prepared for me by Charles Irelan, indicating that Federal criminal statutes may have been violated in several of the cases described in the memorandum. JIM LANIGAN