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75/12/49 252-K May 9, 1947 My dear Mr. Mitchell: I have today transmitted to the Congress estimates of funds required by the Civil Service Commission and the Federal Bureau of x276 Investigation for the loyalty investigations contemplated by Execu- tive Order 9835. In view of your letter to me of April 25, 1947, I feel that I should acquaint you with my reasons for approving the estimate as recommended to me by the Director of the Bureau of the Budget. Filed 2007 While Executive Order 9835 does not require that any field investigations be conducted by the Federal Bureau of Investigation, that Bureau has been performing such investigations under authority of the Act of August 2, 1939, commonly known as the Hatch Act. In carrying out this task the Federal Bureau of Investigation has acquired sources of information and data which make it pre-eminent x10-B among Government agencies in the field of combating subversive in- fluences. I think that any attempt to parallel this organization x482 in another Government agency would be administratively unsound, particularly in view of the underground character of the subversive x285 activities to be controlled, and that the Civil Service Commission in carrying out its responsibilities under Executive Order 9835 should make full use of the facilities of the Federal Bureau of Investigation. The estimates therefore recommend that sufficient funds be x119 allowed the Federal Bureau of Investigation to permit that agency x252 to conduct all loyalty investigations of persons who are now or may hereafter be placed on the pay rolls of the Federal Government. Pre- employment investigations, of course, remain a function of the Civil Service Commission. The estimates contemplate that the Commission will be given sufficient funds with which to conduct investigations of applicants actively under consideration for appointment to certain positions where loyalty is a prime requisite, even though in most cases such persons may actually be appointed prior to the completion of the investigation. Should these investigations by the Commission disclose derogatory information with respect to loyalty or otherwise which in the judgment of the Commission renders the individual unfit for employment, I assume that the Commission would forthwith either declare him ineligible for appointment or terminate his appointment