Petitioner, an aeronautical engineer, was general manager of a
private corporation engaged in developing and producing for the
Armed Forces goods involving military secrets, under contracts
requiring the corporation to exclude from its premises persons not
having security clearances. Under regulations promulgated by the
Secretary of Defense without explicit authorization by either the
President or Congress, and after administrative hearings in which
he was denied access to much of the information adverse to him and
any opportunity to confront or cross-examine witnesses against him,
petitioner was deprived of his security clearance on the grounds of
alleged Communistic associations and sympathies. As a consequence,
the corporation discharged him, and he was unable to obtain other
employment as an aeronautical engineer. He sued for a judgment
declaring that the revocation of his security clearance was
unlawful and void and an order restraining the Secretaries of the
Armed Forces from acting pursuant to it.
Held: In the absence of explicit authorization from
either the President or Congress, the Secretaries of the Armed
Forces were not authorized to deprive petitioner of his job in a
proceeding in which he was not afforded the safeguards of
confrontation and cross-examination. Pp.
360 U. S.
475-508.
(a) Neither Executive Order No. 10290 nor Executive Order No.
10501 empowers any executive agency to fashion security programs
whereby persons are deprived of their civilian employment and of
the opportunity of continued activity in their chosen professions
without being accorded the chance to challenge effectively the
evidence and testimony upon which an adverse security determination
might rest. Pp.
360 U. S.
500-502.
(b) Neither the National Security Act of 1947 nor the Armed
Services Procurement Act of 1947, even when read in conjunction
with 18 U.S.C. § 798, making it a crime to communicate to
unauthorized persons information concerning cryptographic or
intelligence activities, and 50 U.S.C. § 783 (b), making it a
crime
Page 360 U. S. 475
for an officer or employee of the United States to communicate
classified information to agents of foreign governments or officers
and members of "Communist organizations," constitutes an
authorization to create an elaborate clearance program under which
persons may be seriously restrained in their employment
opportunities through a denial of clearance without the safeguards
of cross-examination and confrontation. Pp.
360 U. S.
502-504.
(c) Congressional ratification of the security clearance
procedures cannot be implied from the continued appropriation of
funds to finance aspects of the program fashioned by the Department
of Defense. Pp.
360 U. S.
504-505.
(d) In this area of questionable constitutionality, this Court
will not hold that a person may be deprived of the right to follow
his chosen profession without full hearings where accusers may be
confronted and cross-examined, when neither the President nor
Congress has explicitly authorized such procedure. Pp.
360 U. S.
506-508.
103 U.S.App.D.C. 87, 254 F.2d 944, reversed, and cause
remanded.
MR. CHIEF JUSTICE WARREN delivered the opinion of the Court.
This case involves the validity of the Government's revocation
of security clearance granted to petitioner, an aeronautical
engineer employed by a private manufacturer which produced goods
for the armed services. Petitioner was discharged from his
employment solely as a consequence of the revocation because his
access to classified information was required by the nature of his
job. After his discharge, petitioner was unable to secure
Page 360 U. S. 476
employment as an aeronautical engineer and, for all practical
purposes, that field of endeavor is now closed to him.
Petitioner was vice president and general manager of Engineering
and Research Corporation (ERCO), a business devoted primarily to
developing and manufacturing various mechanical and electronic
products. He began this employment in 1937. soon after his
graduation from the Guggenheim School of Aeronautics and, except
for a brief leave of absence, he stayed with the firm until his
discharge in 1953. He was first employed as a junior engineer and
draftsman. Because of the excellence of his work, he eventually
became a chief executive officer of the firm. During his career
with ERCO, he was credited with the expedited development of a
complicated electronic flight simulator and with the design of a
rocket launcher, both of which were produced by ERCO and long used
by the Navy.
During the post-World War II period, petitioner was given
security clearances on three occasions. [
Footnote 1] These were required by the nature of the
projects undertaken by ERCO for the various armed services.
[
Footnote 2] On November
21,
Page 360 U. S. 477
1951, however, the Army-Navy-Air Force Personnel Security Board
(PSB) advised ERCO that the company's clearances for access to
classified information were in jeopardy because of a tentative
decision to deny petitioner access to classified Department of
Defense information and to revoke his clearance for security
reasons. [
Footnote 3] ERCO was
invited to respond to this notification. The corporation, through
its president, informed PSB that petitioner had taken an extended
furlough due to the Board's action. The ERCO executive also stated
that, in his opinion, petitioner was a loyal and discreet United
States citizen, and that his absence denied to the firm the
services of an outstanding engineer and administrative executive.
On December 11, 1951, petitioner was informed by the Board that it
had
"decided that access by you to contract work and information (at
ERCO) . . . would be inimical to
Page 360 U. S. 478
the best interests of the United States."
Accordingly, the PSB revoked petitioner's clearances. He was
informed that he could seek a hearing before the Industrial
Employment Review Board (IERB), and he took this course. [
Footnote 4] Prior to the hearing,
petitioner received a letter informing him that the PSB action was
based on information indicating that, between 1943 and 1947, he had
associated with Communists, visited officials of the Russian
Embassy, and attended a dinner given by an allegedly Communist
Front organization. [
Footnote
5]
On January 23, 1952, petitioner, with counsel, appeared before
the IERB. He was questioned in detail concerning his background and
the information disclosed in the IERB letter. In response to
numerous and searching questions, he explained in substance that
specific "suspect" persons with whom he was said to have associated
were actually friends of his ex-wife. He explained in some detail
that, during his first marriage, which lasted from
Page 360 U. S. 479
1942 through 1947, his then wife held views with which he did
not concur, and was friendly with associates and other persons with
whom he had little in common. He stated that these basic
disagreements were the prime reasons that the marriage ended in
failure. He attributed to his then wife his attendance at the
dinner, his membership in a bookshop association which purportedly
was a "front organization," and the presence in his home of
"Communist" publications. He denied categorically that he had ever
been a "Communist," and he spoke at length about his dislike for "a
theory of Government which has for its object the common ownership
of property." Lastly, petitioner explained that his visits to
persons in various foreign embassies (including the Russian
Embassy) were made in connection with his attempts to sell ERCO's
products to their Governments. Petitioner's witnesses, who included
top-level executives of ERCO and a number of military officers who
had worked with petitioner in the past, corroborated many of
petitioner's statements and testified in substance that he was a
loyal and discreet citizen. These top-level executives of ERCO,
whose right to clearance was never challenged, corroborated
petitioner's testimony concerning his reasons for visiting the
Russian Embassy.
The Government presented no witnesses. It was obvious, however,
from the questions posed to petitioner and to his witnesses, that
the Board relied on confidential reports which were never made
available to petitioner. These reports apparently were compilations
of statements taken from various persons contacted by an
investigatory agency. Petitioner had no opportunity to confront and
question persons whose statements reflected adversely on him, or to
confront the government investigators who took their statements.
Moreover, it seemed evident that the Board itself had never
questioned the investigators, and
Page 360 U. S. 480
had never seen those persons whose statements were the subject
of their reports.
On January 29, 1952, the IERB, on the basis of the testimony
given at the hearing and the confidential reports, reversed the
action of the PSB and informed petitioner and ERCO that petitioner
was authorized to work on Secret contract work.
On March 27, 1953, the Secretary of Defense abolished the PSB
and IERB and directed the Secretaries of the three armed services
to establish regional Industrial Personnel Security Boards to
coordinate the industrial security program. [
Footnote 6] The Secretaries were also instructed
to establish uniform standards, criteria, and procedures. [
Footnote 7]
Page 360 U. S. 481
Cases pending before the PSB and IERB were referred to these new
Boards. [
Footnote 8] During the
interim period between the abolishment of the old program and the
implementation of the new one, the Secretaries considered
themselves charged with administering clearance activities under
previously stated criteria. [
Footnote 9]
On April 17, 1953, respondent Anderson, the Secretary of the
Navy, wrote ERCO that he had reviewed petitioner's case and had
concluded that petitioner's "continued access to Navy classified
security information [was] inconsistent with the best interests of
National Security." No hearing preceded this notification. He
requested ERCO to exclude petitioner
"from any part of your plants, factories or sites at which
classified Navy projects are being carried out, and to bar him
access to all Navy classified information."
He also advised the corporation that petitioner's case was being
referred to the Secretary of Defense with the recommendation that
the IERB's decision of January 29, 1952, be overruled. ERCO had no
choice but to comply with the request. [
Footnote 10]
Page 360 U. S. 482
This led to petitioner's discharge. [
Footnote 11] ERCO informed the Navy of what had
occurred, and requested an opportunity to discuss the matter in
view of petitioner's importance to the firm. [
Footnote 12] The Navy replied that,
"[a]s far as the Navy
Page 360 U. S. 483
Department is concerned, any further discussion on this problem
at this time will serve no useful purpose."
Petitioner asked for reconsideration of the decision. On October
13, 1953, the Navy wrote to him stating that it had requested the
Eastern Industrial Personnel Security Board (EIPSB) to accept
jurisdiction and to arrive at a final determination concerning
petitioner's status. [
Footnote
13] Various
Page 360 U. S. 484
letters were subsequently exchanged between petitioner's counsel
and the EIPSB. These resulted finally in generalized charges,
quoted in the margin, incorporating the information previously
discussed with petitioner at his 1952 hearing before the IERB.
[
Footnote 14]
Page 360 U. S. 485
On April 28, 1954, more than one year after the Secretary took
action, and for the two days thereafter, petitioner presented his
case to the EIPSB and was cross-examined in detail. The hearing
began with a
Page 360 U. S. 486
statement by the Chairman, which included the following
passage:
"The transcript to be made of this hearing will not include all
material in the file of the case, in that it will not include
reports of investigation conducted by the Federal Bureau of
Investigation or other investigative agencies which are
confidential. Neither will it contain information concerning the
identity of confidential informants or information which will
reveal the source of confidential evidence. The transcript will
contain only the Statement of Reasons, your answer thereto and the
testimony actually taken at this hearing."
Petitioner was again advised that the revocation of his security
clearance was based on incidents occurring between 1942 and 1947,
including his associations with alleged Communists, his visits with
officials of the Russian Embassy, and the presence in his house of
Communist literature.
Petitioner, in response to a question, stated at the outset of
the hearing that he was then employed at a salary of $4,700 per
year as an architectural draftsman, and that he had been receiving
$18,000 per year as Vice President and General Manager of ERCO. He
later explained that,
Page 360 U. S. 487
after his discharge from ERCO, he had unsuccessfully tried to
obtain employment in the aeronautics field, but had been barricaded
from it because of lack of clearance. [
Footnote 15]
Petitioner was subjected to an intense examination similar to
that which he experienced before the IERB in 1952. During the
course of the examination, the Board injected new subjects of
inquiry, and made it evident that it was relying on various
investigatory reports and statements of confidential informants
which were not made available to petitioner. [
Footnote 16] Petitioner reiterated in great
detail the
Page 360 U. S. 488
explanations previously given before the IERB. He was subjected
to intense cross-examination, however, concerning reports that he
had agreed with the views held by his ex-wife.
Page 360 U. S. 489
Petitioner again presented a number of witnesses who testified
that he was loyal, that he had spoken approvingly of the United
States and its economic system, that he was a valuable engineer,
and that he had made valuable and significant contributions to this
country's war efforts during World War II and the Korean War.
Soon after the conclusion of the hearing, the EIPSB notified
petitioner that it had affirmed the Secretary's action, and that it
had decided that the granting of clearance to petitioner for access
to classified information was "not clearly consistent with the
interests of national security." Petitioner requested that he be
furnished with a detailed statement of findings supporting the
Board's decision. He was informed, however, that security
considerations
Page 360 U. S. 490
prohibited such disclosure. [
Footnote 17] On September 16, 1955, petitioner requested
review by the Industrial Personnel Security Review Board. [
Footnote 18] On March 12, 1956,
almost three years after the Secretary's action and nearly one year
after the second hearing, he received a latter from the Director of
the Office of Industrial Personnel Security Review informing him
that the EIPSB had found that, from 1942-1947, petitioner
associated closely with his then wife and her friends, knowing that
they were active in behalf of and sympathized with the Communist
Party, that, during part of this period, petitioner maintained a
sympathetic association with a number of officials of the Russian
Embassy, that, during this period, petitioner's political views
were similar to those of his then wife, that petitioner had been a
member of a suspect bookshop association, had invested money in a
suspect radio station, had attended a suspect dinner, and had, on
occasion, Communist publications in his home, and that petitioner's
credibility as a witness in the proceedings was doubtful. The
letter also stated that the doubts concerning petitioner's
credibility affected the Board's evaluation of his trustworthiness,
and that only trustworthy persons could be afforded access to
classified information. [
Footnote 19] The EIPSB determination was affirmed.
After the EIPSB decision in 1954, petitioner filed a complaint
in the United States District Court for the District
Page 360 U. S. 491
of Columbia asking for a declaration that the revocation was
unlawful and void, and for an order restraining respondents from
acting pursuant to it. [
Footnote
20] He also asked for an order requiring respondents to advise
ERCO that the clearance revocation was void. Following the
affirmance of the EIPSB order by the Industrial Personnel Review
Board, petitioner moved for summary judgment in the District Court.
The Government cross-filed for dismissal of the complaint or
summary judgment. The District Court granted the Government's
motion for summary judgment,
150 F.
Supp. 958, and the Court of Appeals affirmed that disposition,
103 U.S.App.D.C. 87, 254 F.2d 944, 952.
The Court of Appeals recognized that petitioner had suffered
substantial harm from the clearance revocation. [
Footnote 21] But, in that court's view,
petitioner's suit presented no "justiciable controversy" -- no
controversy which the courts could finally and effectively decide.
This conclusion followed from the Court of Appeals' reasoning that
the Executive Department alone is competent to evaluate the
competing considerations which exist in determining the persons who
are to be afforded security clearances.
Page 360 U. S. 492
The court also rejected petitioner's claim that he was deprived
of his livelihood without the traditional safeguards required by
"due process of law" such as confrontation of his accusers and
access to confidential reports used to determine his fitness.
Central to this determination was the court's unwillingness to
order the Government to choose between disclosing the identities of
informants or giving petitioner clearance.
Petitioner contends that the action of the Department of Defense
in barring him from access to classified information on the basis
of statements of confidential informants made to investigators was
not authorized by either Congress or the President, and has denied
him "liberty" and "property" without "due process of law" in
contravention of the Fifth Amendment. The alleged property is
petitioner's employment; the alleged liberty is petitioner's
freedom to practice his chosen profession. Respondents admit, as
they must, that the revocation of security clearance caused
petitioner to lose his job with ERCO and has seriously affected, if
not destroyed, his ability to obtain employment in the aeronautics
field. Although the right to hold specific private employment and
to follow a chosen profession free from unreasonable governmental
interference comes within the "liberty" and "property" concepts of
the Fifth Amendment,
Dent v. West Virginia, 129 U.
S. 114;
Schware v. Board of Bar Examiners,
353 U. S. 232;
Peters v. Hobby, 349 U. S. 331,
349 U. S. 352
(concurring opinion);
cf. Slochower v. Board of Education,
350 U. S. 551;
Truax v. Raich, 239 U. S. 33,
239 U. S. 41;
Allgeyer v. Louisiana, 165 U. S. 578,
165 U. S.
589-590;
Powell v. Pennsylvania, 127 U.
S. 678,
127 U. S. 684,
respondents contend that the admitted interferences which have
occurred are indirect by-products of necessary governmental action
to protect the integrity of secret information, and hence are not
unreasonable and do not constitute deprivations within the meaning
of the Amendment.
Page 360 U. S. 493
Alternatively, respondents urge that, even if petitioner has
been restrained in the enjoyment of constitutionally protected
rights, he was accorded due process of law in that he was permitted
to utilize those procedural safeguards consonant with an effective
clearance program, in the administration of which the identity of
informants and their statements are kept secret to insure an
unimpaired flow to the Government of information concerning
subversive conduct. But, in view of our conclusion that this case
should be decided on the narrower ground of "authorization," we
find that we need not determine the answers to these questions.
[
Footnote 22]
The issue, as we see it, is whether the Department of Defense
has been authorized to create an industrial security clearance
program under which affected persons may lose their jobs and may be
restrained in following their chosen professions on the basis of
fact determinations concerning their fitness for clearance made in
proceedings in which they are denied the traditional procedural
safeguards of confrontation and cross-examination.
Prior to World War II, only sporadic efforts were made to
control the clearance of persons who worked in private
establishments which manufactured materials for national defense.
Report of the Commission on Government Security, 1957, S.Doc.No.64,
85th Cong., 1st Sess. 236. During World War II, the War Department
instituted a
Page 360 U. S. 494
formalized program to obtain the discharge from war plants of
persons engaged in sabotage, espionage, and willful activity
designed to disrupt the national defense program.
Id. at
237. In 1946, the War Department began to require contractors,
before being given access to classified information, to sign
secrecy agreements which required consent before their employees
were permitted access to Top Secret or Secret information.
Id. at 238. At the outset, each armed service administered
its own industrial clearance program.
Id. at 239. Later,
the PSB and IERB were established by the Department of Defense and
the Secretaries of the armed services to administer a more
centralized program.
Ibid. Confusion existed concerning
the criteria and procedures to be employed by these boards.
Ibid. Eventually, generalized procedures were established
with the approval of the Secretaries which provided in part that
before the IERB
"[t]he hearing will be conducted in such manner as to protect
from disclosure information affecting the national security or
tending to compromise investigative sources or methods. . . ."
See "Procedures Governing Appeals to the Industrial
Employment Review Board, dated 7 November 1949," note 48
supra, § 4(c). After abolition of these boards in
1953, and the establishment of the IPSB, various new sets of
procedures were promulgated which likewise provided for the
nondisclosure of information "tending to compromise investigative
sources or methods or the identity of confidential informants."
[
Footnote 23]
Page 360 U. S. 495
All of these programs and procedures were established by
directives issued by the Secretary of Defense or the Secretaries of
the Army, Navy, and Air Force. None was the creature of statute or
of an Executive Order issued by the President. [
Footnote 24]
Respondents maintain that congressional authorization to the
President to fashion a program which denies security clearance to
persons on the basis of confidential information which the
individuals have no opportunity to confront and test is unnecessary
because the President has inherent authority to maintain military
secrets inviolate. And respondents argue that, if a statutory grant
of power is necessary, such a grant can readily be inferred "as a
necessarily implicit authority from the generalized provisions" of
legislation dealing with the armed services.
Page 360 U. S. 496
But the question which must be decided in this case is not
whether the President has inherent power to act, or whether
Congress has granted him such a power; rather, it is whether either
the President or Congress exercised such a power and delegated to
the Department of Defense the authority to fashion such a
program.
Certain principles have remained relatively immutable in our
jurisprudence. One of these is that, where governmental action
seriously injures an individual, and the reasonableness of the
action depends on fact findings, the evidence used to prove the
Government's case must be disclosed to the individual so that he
has an opportunity to show that it is untrue. While this is
important in the case of documentary evidence, it is even more
important where the evidence consists of the testimony of
individuals whose memory might be faulty or who, in fact, might be
perjurers or persons motivated by malice, vindictiveness,
intolerance, prejudice, or jealousy. We have formalized these
protections in the requirements of confrontation and
cross-examination. They have ancient roots. [
Footnote 25] They find expression in the Sixth
Amendment, which provides that, in all criminal cases, the accused
shall enjoy the right "to be confronted with
Page 360 U. S. 497
the witnesses against him." This Court has been zealous to
protect these rights from erosion. It has spoken out not only in
criminal cases,
e.g., Mattox v. United States,
156 U. S. 237,
156 U. S.
242-244;
Kirby v. United States, 174 U. S.
47;
Motes v. United States, 178 U.
S. 458,
178 U. S. 474;
In re Oliver, 333 U. S. 257,
333 U. S. 273,
but also in all types of cases where administrative and regulatory
actions were under scrutiny.
E.g., Southern R. Co. v.
Virginia, 290 U. S. 190;
Ohio Bell Telephone Co. v. Public Utilities Commission,
301 U. S. 292;
Morgan v. United States, 304 U. S. 1,
304 U. S. 19;
Carter v. Kubler, 320 U. S. 243;
Reilly v. Pinkus, 338 U. S. 269.
Nor, as it has been pointed out, has Congress ignored these
fundamental requirements in enacting regulatory legislation.
Joint Anti-Fascist Refugee Committee v. McGrath,
341 U. S. 123,
341 U. S.
168-169 (concurring opinion).
Professor Wigmore, commenting on the importance of
cross-examination, states in his treatise, 5 Wigmore on Evidence
(3d ed. 1940) § 1367:
"For two centuries past, the policy of the Anglo-American system
of Evidence has been to regard the necessity of testing by
cross-examination as a vital feature of the law. The belief that no
safeguard for testing the value of human statements is comparable
to that furnished by cross-examination, and the conviction that no
statement (unless by special exception) should be used as testimony
until it has been probed and sublimated by that test has found
increasing strength in lengthening experience."
"Little need be added to this incisive summary statement except
to point out that, under the present clearance procedures, not only
is the testimony of absent witnesses allowed to stand without the
probing questions of the person under attack which often uncover
inconsistencies,
Page 360 U. S. 498
lapses of recollection, and bias, [
Footnote 26] but, in addition, even the members of the
clearance boards do not see the informants or know their
identities, but normally rely on an investigator's summary report
of what the informant
Page 360 U. S. 499
said without even examining the investigator personally.
[
Footnote 27]"
We must determine, against this background, whether the
President or Congress has delegated to the Department
Page 360 U. S. 500
of Defense the authority to bypass these traditional and well
recognized safeguards in an industrial security clearance program
which can operate to injure individuals substantially by denying to
them the opportunity to follow chosen private professions.
Respondents cite two Executive Orders which they believe show
presidential delegation. The first, Exec.Order No. 10290, 16
Fed.Reg. 9795, was entitled
"Prescribing Regulations Establishing Minimum Standards For The
Classification, Transmission, And Handling, By Departments And
Page 360 U. S. 501
Agencies of the Executive Branch, Of Official Information Which
Requires Safeguarding In The Interest Of The Security Of The United
States."
It provided, in relevant part:
"
PART V -- DISSEMINATION OF CLASSIFIED SECURITY"
"
I
NFORMATION"
"29.
General. a. No person shall be entitled to
knowledge or possession of, or access to, classified security
information solely by virtue of his office or position."
"b. Classified security information shall not be discussed with
or in the presence of unauthorized persons, and the latter shall
not be permitted to inspect or have access to such
information."
"c. The head of each agency shall establish a system for
controlling the dissemination of classified security information
adequate to the needs of his agency."
"30.
Limitations on dissemination -- a.
Within the
Executive Branch. The dissemination of classified security
information shall be limited to persons whose official duties
require knowledge of such information. Special measures shall be
employed to limit the dissemination of 'Top Secret' security
information to the absolute minimum. Only that portion of 'Top
Secret' security information necessary to the proper planning and
appropriate action of any organizational unit or individual shall
be released to such unit or individual."
"b.
Outside the Executive Branch. Classified security
information shall not be disseminated outside the Executive Branch
by any person or agency having access thereto or knowledge thereof
except under conditions and through channels authorized by
Page 360 U. S. 502
the head of the disseminating agency, even though such person or
agency may have been solely or partly responsible for its
production."
The second, Exec.Order No. 10501, 18 Fed. Reg. 7049, which
revoked Exec.Order No. 10290, is entitled "Safeguarding Official
Information In The Interests Of The Defense Of The United States,"
and provides in relevant part:
"Sec. 7.
Accountability and Dissemination."
"
* * * *"
"(b)
Dissemination Outside the Executive Branch.
Classified defense information shall not be disseminated outside
the executive branch except under conditions and through channels
authorized by the head of the disseminating department or agency,
even though the person or agency to which dissemination of such
information is proposed to be made may have been solely or partly
responsible for its production."
Clearly, neither of these orders empowers any executive agency
to fashion security programs whereby persons are deprived of their
present civilian employment and of the opportunity of continued
activity in their chosen professions without being accorded the
chance to challenge effectively the evidence and testimony upon
which an adverse security determination might rest. [
Footnote 28]
Turning to the legislative enactments which might be deemed as
delegating authority to the Department of Defense to fashion
programs under which persons may be
Page 360 U. S. 503
seriously restrained in their employment opportunities through a
denial of clearance without the safeguards of cross-examination and
confrontation, we note the Government's own assertion, made in its
brief, that "[w]ith petitioner's contention that the Industrial
Security Program is not explicitly authorized by statute we may
readily agree. . . ."
The first proffered statute is the National Security Act of
1947, as amended, 5 U.S.C. § 171
et seq. That Act
created the Department of Defense and gave to the Secretary of
Defense and the Secretaries of the armed services the authority to
administer their departments. Nowhere in the Act or its amendments
is there found specific authority to create a clearance program
similar to the one now in effect.
Another Act cited by respondents is the Armed Service
Procurement Act of 1947, as amended. It provides in 10 U.S.C.
§ 2304, that:
"(a) Purchases of and contracts for property or services covered
by this chapter shall be made by formal advertising. However, the
head of an agency may negotiate such a purchase or contract if
--"
"
* * * *"
"(12) the purchase or contract is for property or services whose
procurement he determines should not be publicly disclosed because
of their character, ingredients, or components."
It further provides in 10 U.S.C. § 2306:
"(a) The 'cost plus a percentage of cost' system of contracting
may not be used. Subject to this limitation and subject to
subsections (b)-(e), the head of an agency may, in negotiating
contracts under section 2304 of this title, make any kind of
contract that he considers will promote the best interests of the
United States. "
Page 360 U. S. 504
Respondents argue that these statutes, together with 18 U.S.C.
§ 798, which makes it a crime willfully and knowingly to
communicate to unauthorized persons information concerning
cryptographic or intelligence activities, and 50 U.S.C. §
783(b), which makes it a crime for an officer or employee of the
United States to communicate classified information to agents of
foreign governments or officers and members of "Communist
organizations," reflect a recognition by Congress of the existence
of military secrets and the necessity of keeping those secrets
inviolate.
Although these statutes make it apparent that Congress
recognizes the existence of military secrets, they hardly
constitute an authorization to create an elaborate clearance
program which embodies procedures traditionally believed to be
inadequate to protect affected persons. [
Footnote 29]
Lastly, the Government urges that, if we refuse to adopt its
"inferred" authorization reasoning, nevertheless congressional
ratification is apparent by the continued appropriation of funds to
finance aspects of the program fashioned by the Department of
Defense. Respondents refer us to Hearings before the House
Committee on Appropriations on Department of Defense Appropriations
for 1956, 84th Cong., 1st Sess. 774-781. At those hearings, the
Committee was asked to approve the appropriation of funds to
finance a program under which reimbursement for lost wages would be
made to employees of government contractors who were temporarily
denied, but later granted, security clearance. Apparently, such
reimbursements
Page 360 U. S. 505
had been made prior to that time out of general appropriations.
Although a specific appropriation was eventually made for this
purpose, it could not conceivably constitute a ratification of the
hearing procedures, for the procedures were in no way involved in
the special reimbursement program. [
Footnote 30]
Page 360 U. S. 506
Respondents' argument on delegation resolves itself into the
following: the President, in general terms, has authorized the
Department of Defense to create procedures to restrict the
dissemination of classified information, and has apparently
acquiesced in the elaborate program established by the Secretary of
Defense even where application of the program results in restraints
on traditional freedoms without the use of long-required procedural
protections. Similarly, Congress, although it has not enacted
specific legislation relating to clearance procedures to be
utilized for industrial workers, has acquiesced in the existing
Department of Defense program and has ratified it by specifically
appropriating funds to finance one aspect of it.
If acquiescence or implied ratification were enough to show
delegation of authority to take actions within the area of
questionable constitutionality, we might agree with respondents
that delegation has been shown here. In many circumstances, where
the Government's freedom to act is clear, and the Congress or the
President has provided general standards of action and has
acquiesced in administrative interpretation, delegation may be
inferred. Thus, even in the absence of specific delegation, we have
no difficulty in finding, as we do, that the Department of Defense
has been authorized to fashion and apply an industrial clearance
program which affords affected persons the safeguards of
confrontation and cross-examination. But this case does not present
that situation. We deal here with substantial restraints on
employment opportunities of numerous persons imposed in a manner
which is in conflict with our long-accepted
Page 360 U. S. 507
notions of fair procedures. [
Footnote 31] Before we are asked to judge whether, in the
context of security clearance cases, a person may be deprived of
the right to follow his chosen profession without full hearings
where accusers may be confronted, it must be made clear that the
President or Congress, within their respective constitutional
powers, specifically has decided that the imposed procedures are
necessary and warranted and has authorized their use.
Cf.
Watkins v. United States, 354 U. S. 178;
Scull v. Virginia, 359 U. S. 344.
Such decisions cannot be assumed by acquiescence or nonaction.
Kent v. Dulles, 357 U. S. 116;
Peters v. Hobby, 349 U. S. 331;
Ex parte Endo, 323 U. S. 283,
323 U. S.
301-302. They must be made explicitly not only to assure
that individuals are not deprived of cherished rights under
procedures not actually authorized,
see Peters v. Hobby,
supra, but also because explicit action, especially in areas
of doubtful constitutionality, requires careful and purposeful
consideration by those responsible for enacting and implementing
our laws. Without explicit action by lawmakers, decisions of great
constitutional import and effect would be relegated by default to
administrators who, under our system of government, are not endowed
with authority to decide them.
Where administrative action has raised serious constitutional
problems, the Court has assumed that Congress or the President
intended to afford those affected by the action the traditional
safeguards of due process.
See, e.g., The Japanese Immigrant
Case, 189 U. S. 86,
189 U. S. 101;
Dismuke v. United States, 297 U.
S. 167,
297 U. S. 172;
Ex parte Endo, 323 U. S. 283,
323 U. S.
299-300;
American Power & Light Co. v.
Securities and Exchange Comm'n, 329 U. S.
90,
329 U. S.
107-108;
Page 360 U. S. 508
Hannegan v. Esquire, 327 U. S. 146,
327 U. S. 156;
Wong Yang Sung & McGrath, 339 U. S.
33,
339 U. S. 49.
Cf. Anniston Mfg. Co. v. Davis, 301 U.
S. 337;
United States v. Rumely, 345 U. S.
41. These cases reflect the Court's concern that
traditional forms of fair procedure not be restricted by
implication or without the most explicit action by the Nation's
lawmakers, even in areas where it is possible that the Constitution
presents no inhibition.
In the instant case, petitioner's work opportunities have been
severely limited on the basis of a fact determination rendered
after a hearing which failed to comport with our traditional ideas
of fair procedure. The type of hearing was the product of
administrative decision not explicitly authorized by either
Congress or the President. Whether those procedures, under the
circumstances, comport with the Constitution we do not decide. Nor
do we decide whether the President has inherent authority to create
such a program, whether congressional action is necessary, or what
the limits on executive or legislative authority may be. We decide
only that, in the absence of explicit authorization from either the
President or Congress, the respondents were not empowered to
deprive petitioner of his job in a proceeding in which he was not
afforded the safeguards of confrontation and cross-examination.
Accordingly, the judgment is reversed, and the case is remanded
to the District Court for proceedings not inconsistent
herewith.
It is so ordered.
MR. JUSTICE FRANKFURTER, MR. JUSTICE HARLAN and MR. JUSTICE
WHITTAKER concur in the judgment on the ground that it has not been
shown that either Congress or the President authorized the
procedures whereby petitioner's security clearance was revoked,
intimating no views as to the validity of those procedures.
Page 360 U. S. 509
[
Footnote 1]
Petitioner was given a Confidential clearance by the Army on
August 9, 1949, a Top Secret clearance by the Assistant Chief of
Staff G-2, Military District of Washington on November 9, 1949, and
a Top Secret clearance by the Air Material Command on February 3,
1950.
[
Footnote 2]
ERCO did classified contract work for the various services. In
1951, in connection with a classified research project for the
Navy, it entered into a security agreement in which it
undertook
"to provide and maintain a system of security controls within
its . . . own organization in accordance with the requirements of
the Department of Defense Industrial Security Manual. . . ."
The Manual, in turn, provided in paragraphs 4(e) and 6:
"The Contractor shall exclude (this does not imply the dismissal
or separation of any employee) from any part of its plants,
factories, or sites at which work for any military department is
being performed, any person or persons whom the Secretary of the
military department concerned or his duly authorized
representative, in the interest of security, may designate in
writing."
"
* * * *"
"No individual shall be permitted to have access to classified
matter unless cleared by the Government or the Contractor, as the
case may be, as specified in the following subparagraphs, and then
he will be given access to such matter only to the extent of his
clearance. . . ."
[
Footnote 3]
The PSB was created pursuant to an interim agreement dated
October 9, 1947, between the Army, Navy, and Air Force and pursuant
to a memorandum of agreement between the Provost Marshal General
and the Air Provost Marshal, dated March 17, 1948.
"It was a three-man board, with one representative from each of
the military departments. . . . Its functions were to grant or deny
clearance for employment on aeronautical or classified contract
work when such consent was required, and to suspend individuals,
whose continued employment was considered inimical to the security
interests of the United States, from employment on classified
work."
Report of the Commission on Government Security, 1957, S.Doc.
No. 64, 85th Cong., 1st Sess. 239. It established its own
procedures which were approved by the Secretaries of the Army,
Navy, and Air Force.
See "Procedures Governing the
Army-Navy-Air Force Personnel Security Board," dated 19 June
1950.
[
Footnote 4]
The IERB was a four-member board which was given jurisdiction to
hear and review appeals from decisions of the PSB. Its charter,
dated 7 November 1949 and signed by the Secretaries of the Army,
Navy, and Air Force, contemplated that it would afford hearings to
persons denied clearance.
And see "Procedures Governing
Appeals to the Industrial Employment Review Board, dated 7 November
1949."
[
Footnote 5]
The letter read, in part:
"That, over a period of years, 1943-1947, at or near Washington,
D.C., you have closely and sympathetically associated with persons
who are reported to be or to have been members of the Communist
Party; that, during the period 1944-1947, you entertained and were
visited at your home by military representatives of the Russian
Embassy, Washington, D.C.; that, further, you attended social
functions during the period 1944-1947 at the Russian Embassy,
Washington, D.C.; and, on 7 April 1947, attended the Southern
Conference for Human Welfare, Third Annual Dinner, Statler Hotel
Washington, D.C., Cited as Communist Front organization,
Congressional Committee on Un-American Activities."
[
Footnote 6]
The Boards were abolished pursuant to a memorandum of March 27,
1953, issued by the Secretary of Defense to the Secretaries of the
Army, Navy, and Air Force and to the Chairman of the Munitions
Board. It provided in part:
"5. The Department of the Army, Navy and Air Force shall
establish such number of geographical regions within the United
States as seems appropriate to the workload in each region. There
shall then be established within each region an Industrial
Personnel Security Board. This board shall consist of two separate
and distinct divisions, a Screening Division and an Appeal
Division, with equal representation of the Departments of the Army,
Navy and Air Force on each such division. The Appeal Division shall
have jurisdiction to hear appeals from the decision of the
Screening Division, and its decisions shall be determined by a
majority vote which shall be final, subject only to reconsideration
on its own motion or at the request of the appellant for good cause
shown or at the request of the Secretary of any military
department."
[
Footnote 7]
The memorandum from the Secretary of Defense also provided:
"6. The Secretaries of the Army, Navy and Air Force, shall
within thirty days (30), establish such geographical regions and
develop joint uniform standards, criteria, and detailed procedures
to implement the above-described program. In developing the
standards, criteria, and procedures, full consideration shall be
given to the rights of individuals, consistent with security
requirements. After approval by the Secretaries of the Army, Navy,
and Air Force, the standards, criteria, and procedures shall govern
the operation of the Board."
[
Footnote 8]
The memorandum provided:
"7. All cases pending before the Army-Navy-Air Force Personnel
Security Board and the Industrial Employment Review Board shall be
referred for action under this order to the appropriate Industrial
Personnel Security Board."
[
Footnote 9]
The memorandum further provided:
"4. The Criteria Governing Actions by the Industrial Employment
Review Board, dated 7 November 1949, as revised 10 November 1950,
and approved by the Secretaries of the Army, Navy, and Air Force,
shall govern security clearances of industrial facilities and
industrial personnel by the Secretaries of the Army, Navy and Air
Force until such time as uniform criteria are established in
connection with paragraph 6 of this memorandum."
[
Footnote 10]
See note 2
supra.
[
Footnote 11]
The Chairman of the Board of ERCO, Colonel Henry Berliner, later
testified by affidavit as follows:
"During the year 1953, and for many years previous thereto, I
was the principal stockholder of Engineering and Research
Corporation, a corporation which had its principal place of
business at Riverdale, Maryland. I was also the chairman of the
board, and the principal executive officer of this
corporation."
"I am acquainted with William Lewis Greene. Prior to the month
of April, 1953, Mr. Greene was Vice-President in charge of
engineering and General Manager of Engineering and Research
Corporation. He has been employed by this corporation since 1937.
His progress in the company had been consistent. He was one of our
most valued and valuable employees, and was responsible for much of
the work which Engineering and Research Corporation was doing. In
April, 1953, the company received a letter from the Secretary of
the Navy advising us that clearance had been denied to Mr. Greene,
and advising us that it would be necessary to bar him from access
to our plant. In view of his position with the company, there was
no work which he could do in light of this denial of clearance by
the Navy. As a result, it was necessary for the company to
discharge him. There was no other reason for Mr. Greene's
discharge, and, in the absence of the letter referred to, he could
have continued in the employment of Engineering and Research
Corporation indefinitely."
[
Footnote 12]
The President of ERCO wrote to the Secretary of the Navy as
follows:
"The Honorable R. B. Anderson"
"Secretary of the Navy"
"Washington 25, D.C."
"My dear Mr. Secretary:"
"Receipt is acknowledged of your letter of April 17, 1953 in
which you state that you have reviewed the case history file on
William Lewis Greene, and have concluded that his continued access
to Navy classified security information is inconsistent with the
best interests of National Security."
"You request this company to exclude Mr. Greene from our plants,
factories or sites, and to bar him from information in the
interests of protecting Navy classified projects and classified
security information."
"In accordance with your request, please be advised that, since
receipt of your letter, this company has excluded Mr. Greene from
any part of our plants, factories or sites, and barred him access
to all classified security information."
"For your further information, Mr. Greene tendered his
resignation as an officer of this corporation, and has left the
plant. We shall have no further contact with him until his status
is clarified, although we have not yet formally accepted his
resignation."
"Mr. Greene is Vice President of this company in charge of
engineering. His knowledge, experience and executive ability have
proven of inestimable value in the past. The loss of his services
at this time is a serious below to company operations. Accordingly,
we should like the privilege of a personal conference to discuss
the matter further."
"Furthermore, you state that you are referring the case to the
Secretary of Defense recommending that the Industrial Employment
Review Board's decision of January 29, 1952, be overruled. If it is
appropriate, we should like very much to have the privilege of
discussing the matter with the Secretary of Defense."
"Please accept our thanks for any official courtesies which you
are in a position to extend."
Respectfully yours,
Engineering and Research Corporation
By /s/ L. A. Wells
[
Footnote 13]
On May 4, 1953, pursuant to the memorandum of the Secretary of
Defense dated March 27, 1953, see note 6, supra, the Secretaries of
the military departments established regional Industrial Personnel
Security Boards governed by generalized standards, criteria, and
procedures.
[
Footnote 14]
The specifications were contained in a letter to petitioner's
counsel dated April 9, 1954, which was sent nineteen days before
the hearing. That letter provided in part:
"Security considerations permit disclosure of the following
information that has thus far resulted in the denial of clearance
to Mr. Greene:"
"1. During 1942, Subject was a member of the Washington Book
Shop Association, an organization that has been officially cited by
the Attorney General of the United States as Communist and
subversive."
"2. Subject's first wife, Jean Hinton Greene, to whom he was
married from approximately December, 1942, to approximately
December, 1947, was an ardent Communist during the greater part of
the period of the marriage."
"3. During the period of Subject's first marriage, he and his
wife had many Communist publications in their home, including the
'Daily Worker'; 'Soviet Russia Today'; 'In Fact'; and Karl Marx's
'Das Kapital.'"
"4. Many apparently reliable witnesses have testified that,
during the period of Subject's first marriage, his personal
political sympathies were in general accord with those of his wife,
in that he was sympathetic towards Russia; followed the Communist
Party 'line'; presented 'fellow-traveler' arguments; was apparently
influenced by 'Jean's wild theories'; etc. (Nothing in the record
establishes that any witness 'testified' at any hearing on these
subjects, and everything in the record indicates that they could
have done no more than make such statements to investigative
officers.)"
"5. In about 1946, Subject invested approximately $1,000 in the
Metropolitan Broadcasting Corporation, and later became a director
of its Radio Station WQQW. It has been reliably reported that many
of the stockholders of the Corporation were Communists or
pro-Communists, and that the news coverage and radio programs of
Station WQQW frequently paralleled the Communist Party 'line.'
[This station is now Station WGMS, Washington's 'Good Music
Station.' Petitioner stated that he invested money in the station
because he liked classical music and he considered it a good
investment.]"
"6. On 7 April 1947, Subject and his wife Jean attended the
Third Annual Dinner of the Southern Conference for Human Welfare,
an organization that has been officially cited as a Communist
front. [This dinner was also attended by many Washington notables,
including several members of this Court.]"
"7. Beginning about 1942 and continuing for several years
thereafter, Subject maintained sympathetic associations with
various officials of the Soviet Embassy, including Major
Constantine I. Ovchinnikov, Col. Pavel F. Berezin, Major Pavel N.
Asseev, Col. Ilia M. Saraev, and Col. Anatoly Y. Golkovsky.
[High-level executives of ERCO, as above noted, testified that
these associations were carried on to secure business for the
corporation.]"
"8. During 1946 and 1947, Subject had frequent sympathetic
association with Dr. Vaso Syrzentic of the Yugoslav Embassy. Dr.
Syrzentic has been identified as an agent of the International
Communist Party. [Petitioner testified that he met this individual
once in connection with a business transaction.]"
"9. During 1943, Subject was in contact with Col. Alexander Hess
of the Czechoslovak Embassy, who has been identified as an agent of
the Red Army Intelligence. [This charge was apparently abandoned,
as no adverse finding was based on it.]"
"10. During 1946 and 1947, Subject maintained close and
sympathetic association with Mr. and Mrs. Nathan Gregory
Silvermaster and William Ludwig Ullman. Silvermaster and Ullman
have been identified as members of a Soviet Espionage Apparatus
active in Washington, D.C., during the 1940's. [Silvermaster was a
top economist in the Department of Agriculture, and the direct
superior of petitioner's ex-wife, who then worked in that
department.]"
"11. Subject had a series of contacts with Laughlin Currie
during the period 1945-48. Currie has also been identified as a
member of the Silvermaster espionage group. [Petitioner met Currie
in the executive offices of the President at a time when Currie was
a Special Assistant to the President.]"
"12. During the period between 1942 and 1947, Subject maintained
frequent and close associations with many Communist Party members,
including R___ S___, and his wife E___, B___ W___ and his wife
M___, M___ P___, M___ L. D___, R___ N___ and I___ S___. [These
persons were apparently friends of petitioner's ex-wife.]"
"13. During substantially the same period, Subject maintained
close association with many persons who have been identified as
strong supporters of the Communist conspiracy, including S___ J.
R___, S___ L___, O___ L___, E___ F___ and V___ G___. (These persons
were apparently friends of his ex-wife.)"
"It is noted that all of the above information has previously
been discussed with Mr. Greene at his hearing before the Industrial
Employment Review Board, and that a copy of the transcript of that
hearing was made available to you in August of last year."
[
Footnote 15]
Petitioner stated by affidavit in support of his motion for
summary judgment that,
"[a]fter my discharge from Engineering and Research Corporation,
I made every possible effort to secure other employment at a salary
commensurate with my experience, but I was unable to do so because
all of my work history had been in the field of aeronautics. In
spite of everything I could do, the best position I could obtain
was a draftsman-engineer in an architectural firm. I was obliged to
go to work for a salary of $4,400 per year because the basis upon
which a higher salary would be justified was experience in a field
which was not particularly useful in the type of work which I was
able to obtain. As a result of the actions of the defendants
complained of, the field of aeronautical engineering was closed to
me."
[
Footnote 16]
For instance, the following questions were asked in connection
with the so-called "left wing" radio station in which petitioner
owned stock, petitioner's acquaintanceship with alleged
subversives, and petitioner's business relationships with foreign
governments:
"Q. We have information here, Mr. Greene, that one particular
individual specifically called your attention to the fact that
[Congressman] Rankin and [Senator] Bilbo had characterized this
station as a Communist station, run by and for Communists?"
"
* * * *"
"Q. We have information here, this has come from an informant
characterized to be of known reliability in which he refers to
conversations he had with you about January of 1947 in which you
told him that you had visited M___ P___ the previous evening, and
had become rather chummy with him, do you wish to comment on
that?"
"
* * * *"
"Q. Concerning your relationship with S___ L___, we have
information here from an informant characterized as being one of
known reliability, in which S___ L___ told this informant that,
shortly following her Western High School speech in 1947, she
remarked to you that probably many people will learn things about
Russia, and she quoted you as replying, 'Well I hope they learn
something good, at least.' Do you wish to say anything about
that?"
"
* * * *"
"Q. Information we have, Mr. Greene, indicates, first of all,
that you didn't meet these Russians in 1942, but you met them in
early 1943."
"
* * * *"
"Q. Now, we have further information, Mr. Greene, indicating
that the initiative of these contacts came from Col. Berezin."
"
* * * *"
"Q. We have information here indicating that, as a matter of
fact, sir, we do know that the meeting between you and Col. Berezin
was arranged through Hess and Hochfeld, as you indicated. We also
have information from a source identified as being one of known
reliability referring to a conversation that this source had with
Hess in April 1943 in which Hess stated that he had been talking to
one Harry, not further identified but presumed to be Hochfeld, and
that Harry said to Hess that he had a young engineer who is a good
friend of ours and of our cause, and Harry wanted Hess to set up a
meeting between Berezin and yourself. Can you give us some reason
why Harry might have referred to you as a good friend of our
cause?"
"
* * * *"
"Q. Of course, we can make certain assumptions as to why Col.
Berezin might have wanted to meet you back in December, 1942, when
we look at a statement like this indicating that you were
considered a good friend of theirs, and of their cause. Of course,
some weight is lent to this assumption by the fact that your wife
was strongly pro-Communist, and, after she left you, she became
very active in Communist affairs, in case you don't know that, I'll
pass it on to you."
And the following questions were asked of various witnesses
presented by petitioner evidently because the Board had
confidential information that petitioner's ex-wife was
"eccentric."
"Q. Now you were in Bill's home, that red brick house that
you're talking about."
"
* * * *"
"Q. Was there anything unusual about the house itself, the
interior of it -- was it dirty?"
"
* * * *"
"Q. Were there any beds in their house which had no mattresses
on them?"
"
* * * *"
"Q. Did you ever hear it said that Jean Slept on a board in
order to keep the common touch?"
"
* * * *"
"Q. When you were in Jean's home, did she dress conventionally
when she received her guests?"
"
* * * *"
"Q. Let me ask you this, conventionally, when somebody would
invite you for dinner at their home, would you expect them, if they
were a woman, to wear a dress and shoes and stockings and the usual
clothing of the evening, or would you expect them to appear in
overalls?"
[
Footnote 17]
The notification stated:
"Security considerations prohibit the furnishing to an appellant
of a detailed statement of the findings on appeal inasmuch as the
entire file is considered and comments made by the Appeal Division
panel on security matters which could not, for security reasons,
form the basis of a statement of reasons."
[
Footnote 18]
This Board was created by the Secretary of Defense on February
2, 1955, and given power to review adverse decisions rendered by
the regional boards.
[
Footnote 19]
This was the first time that petitioner was charged or found to
be untrustworthy.
[
Footnote 20]
The complaint was filed before the establishment of the
Industrial Personnel Security Review Board.
See note 18 supra.
[
Footnote 21]
The Court of Appeals stated:
"We have no doubt that Greene has, in fact, been injured. He was
forced out of a job that paid him $18,000 per year. He has since
been reduced, so far as this record shows, to working as an
architectural draftsman at a salary of some $4,400 per year.
Further, as an aeronautical engineer of considerable experience, he
says (without real contradiction) that he is effectively barred
from pursuit of many aspects of his profession, given the current
dependence of most phases of the aircraft industry on Defense
Department contracts not only for production, but for research and
development work as well. . . . Nor do we doubt that, following the
Government's action, some stigma, in greater or less degree, has
attached to Greene."
103 U.S.App.D.C. 87, 95-96, 254 F.2d 944, 952-953.
[
Footnote 22]
We note our agreement with respondents' concession that
petitioner has standing to bring this suit and to assert whatever
rights he may have. Respondents' actions, directed at petitioner as
an individual, caused substantial injuries,
Joint Anti-Fascist
.refugee Committee v. McGrath, 341 U.
S. 123,
341 U. S. 152
(concurring opinion), and, were they the subject of a suit between
private persons, they could be attacked as an invasion of a legally
protected right to be free from arbitrary interference with private
contractual relationships. Moreover, petitioner has the right to be
free from unauthorized actions of government officials which
substantially impair his property interests.
Cf. Philadelphia
Co. v. Stimson, 223 U. S. 605.
[
Footnote 23]
The Industrial Personnel Security Review Regulation, 20 Fed.Reg.
1553, recommended by the Secretaries of the Army, Navy, and Air
Force, and approved by the Secretary of Defense, provided:
"§ 67.1-4.
Release of information."
"All personnel in the Program will comply with applicable
directives pertaining to the safeguarding of classified information
and the handling of investigative reports. No classified
information, nor any information which might compromise
investigative sources or methods or the identity of confidential
informants, will be disclosed to any contractor or contractor
employee, or to his lawyer or representatives, or to any other
person not authorized to have access to such information. In
addition, in a case involving a contractor employee, the contractor
concerned will be advised only of the final determination in the
case to grant, deny, or revoke clearance, and of any decision to
suspend a clearance granted previously pending final determination
in the case. The contractor will not be given a copy of the
Statement of Reasons issued to the contractor employee except at
the written request of the contractor employee concerned."
[
Footnote 24]
See "Charter of the Industrial Employment Review Board,
dated 7 November 1949,"
note 4
supra; "Charter of the Army-Navy-Air Force Personnel
Security Board, dated 19 June 1950,"
note 3 supra; Memorandum issued by the Secretary
of Defense to the Secretaries of the Army, Navy, and Air Force and
to the Chairman of the Munitions Board, dated March 27, 1953, notes
6 7 8 and |
8 and S. 474fn9|>9,
supra;
"The Industrial Personnel and Facility Security Clearance Program,"
effective May 4, 1953,
8 and S.
474fn13|>note 13,
supra; "The Industrial Personnel
Security Review Regulation," 20 Fed.Reg. 1553, 32 CFR Part 67 (1958
Supp.); Industrial Security Manual for Safeguarding Classified
Information, 20 Fed.Reg. 6213, 21 Fed.Reg. 2814.
[
Footnote 25]
When Festus, more than two thousand years ago, reported to King
Agrippa that Felix had given him a prisoner named Paul and that the
priests and elders desired to have judgment against Paul, Festus is
reported to have stated:
"It is not the manner of the Romans to deliver any man to die
before that he which is accused have the accusers face to face, and
have license to answer for himself concerning the crime laid
against him."
Acts 25:16.
Professor Wigmore explains in some detail the emergence of the
principle in Anglo-American law that confrontation and
cross-examination are basic ingredients in a fair trial. 5 Wigmore
on Evidence (3d ed. 1940) § 1364.
And see O'Brian,
National Security and Individual Freedom 62.
[
Footnote 26]
For instance, in the instant case, to establish the charge that
petitioner's "personal political sympathies were in general accord
with those of his wife," the EIPSB apparently relied on statements
made to investigators by "old" friends of petitioner. Thus, the
following questions were asked petitioner:
"Q. I'd like to read to you a quotation from the testimony of a
person who had identified himself as having been a very close
friend of yours over a long period of years. He states that you, as
saying to him one day that you were reading a great deal of
pro-Communist books and other literature. Do you wish to comment on
that?"
"
* * * *"
"Q. Incidentally, this man's testimony concerning you was
entirely favorable in one respect. He stated that he didn't think
you were a Communist, but he did state that he thought that you
have been influenced by Jean's viewpoints, and that he had received
impressions definite that it was your wife who was parlor pink, and
that you were going along with her."
"
* * * *"
"Q. This same friend testified that he believed that you were
influenced by Jean's wild theories, and he decided at that time to
have no further association with you and your wife. . . ."
"
* * * *"
"Q. . . . Here's another man, who indicates that he has been a
friend of yours over a long period of time, who states that he was
a visitor in your home on occasions, and that, regarding some of
these visits, he met some of your wife's friends, these people
we've been talking about in the past, and that, one occasion he
mentioned in particular, the topic of conversation was China, and
that you set forth in the conversation, and there seemed general
agreement among all of you at that time that the revolutionists in
China were not actually Communists, but were agrarian reformists,
which, as you probably know, is part of the Communist propaganda
line of several years back. . . ."
"
* * * *"
"Q. Mr. Greene, we've got some information here indicating that,
during the period of your marriage to your first wife, that she was
constantly finding fault with the American institutions, opposing
the American Capitalistic System, and never had anything but praise
for the Russians and everything they attempted to do. Did you find
that to be the case?"
"
* * * *"
"Q. We have a statement here from another witness with respect
to yourself in which he states that you felt that the modern people
in this country were too rich and powerful, that the capitalistic
system of this country was to the disadvantage of the working
people, and that the working people were exploited by the
rich."
"
* * * *"
"Q. I have a statement from another one of your associates to
the effect that you would, at times, present to him a
fellow-traveler argument. This man indicated to us that he was
pretty well versed on the Communist Party line himself at that
time, and found you parroting arguments which he assumed that you
got from your wife. Do you wish to comment on that?"
Confrontation of the persons who allegedly made these statements
would have been of prime importance to petitioner, for
cross-examination might have shown that these "witnesses" were hazy
in recollecting long-past incidents, or were irrationally motivated
by bias or vindictiveness.
[
Footnote 27]
This is made clear by the following testimony of Jerome D.
Fenton, Director, Industrial Personnel Security, Department of
Defense, before the Subcommittee on Constitutional Rights of the
Senate Judiciary Committee, given on November 23, 1955:
"[Q.] . . . What other type of evidence is received by the
hearing boards besides the evidence of persons under oath?"
"[A.] The reports from the various governmental investigative
agencies."
"[Q.] And the reports of the various governmental investigations
might, themselves, be hearsay, might they not?"
"[A.] I think that is a fair statement."
"[Q.] In fact, they might be, as the Court of Appeals for the
Ninth District [
sic] said with respect to the port
security program, second, or third, or fourth-hand hearsay, might
they not? [This question refers to the opinion of the Court of
Appeals for the Ninth Circuit in
Parker v. Lester, 227
F.2d 708.]"
"[A.] The answer is 'Yes.'"
"[Q.] Can you tell me what type of help is given to the hearing
board in these reports with respect to the matter of evaluation?
What is the nature of the evaluation that is used for this
purpose?"
"[A.] Well, each board has a person who is called a security
adviser, who is an expert in that particular area. Each screening
board has one, and those individuals are well trained people who
know how to evaluate reports and evaluate information. They know
how to separate the wheat from the chaff, and they assist these
boards."
"[Q.] This expert, then, has to take the report and make his own
determination in assisting the board as to the reliability of a
witness that he has never seen, or perhaps hasn't even had the
opportunity to see the person who interviewed the witness?"
"[A.] Well, he has nothing to do with the witness; no."
"[Q.] What is that?"
"[A.] He has not interviewed the witness, no."
Hearings before Subcommittee on Constitutional Rights, Senate
Judiciary Committee, on S.Res. 94, 84th Cong., 2d Sess. 623-624.
And cf. Richardson, The Federal Employee Loyalty Program,
51 Col.L.Rev. 546, and Hearings before a Subcommittee of the Senate
Foreign Relations Committee on S.Res. 231, 81st Cong., 2d Sess.,
327-339 (statement of J. Edgar Hoover, Director Federal Bureau of
Investigation).
[
Footnote 28]
No better, for this purpose, is Exec.Order No. 8972, 6 Fed.Reg.
6420, filed on December 12, 1941, which empowered the Secretary of
War
"to establish and maintain military guards and patrols, and to
take other appropriate measures, to protect from injury or
destruction national defense material, national defense premises,
and national defense utilities. . . ."
Even if that order is relevant authority for programs created
after World War II, which is doubtful, it provides no specific
authorization for nonconfrontation hearings.
[
Footnote 29]
As far as appears, the most substantial official notice which
Congress had of the nonconfrontation procedures used in screening
industrial workers was embodied in S.Doc. No. 40, 84th Cong., 1st
Sess., a 354-page compilation of laws, executive orders, and
regulations relating to internal security, printed at the request
of a single Senator, which reproduced, among other documents and
without specific comment, the Industrial Personnel Security Review
Regulation.
[
Footnote 30]
At the hearings to which we have been referred, the following
passage from the testimony of the Department of Defense
representative constitutes the only description made to the
Committee concerning the procedures used in the Department's
clearance program:
"In connection with the procurement programs of the Department
of Defense, regulations have been prescribed to provide uniform
standards and criteria for determining the eligibility of
contractors, contractor employees, and certain other individuals,
to have access to classified defense information. The regulations
also establish administrative procedures governing the disposition
of cases in which a military department, or activity thereof, has
made a recommendation or determination (a) with respect to the
denial, suspension, or revocation of a clearance of a contractor or
contractor employee; and (b) with respect to the denial or
withdrawal of authorization for access by certain other
individuals."
"While the Department of Defense assumes, unless information to
the contrary is received, that all contractors and contractor
employees are loyal to the Government of the United States, the
responsibilities of the Military Establishment necessitate vigorous
application of policies designed to minimize the security risk
incident to the use of classified information by such contractors
and contractor employees. Accordingly, measures are taken to
provide continuing assurance that no contractor or contractor
employee will be granted a clearance if available information
indicates that the granting of such clearance may not be clearly
consistent with the interests of national security. At the same
time, every possible safeguard within the limitations of national
security will be provided to ensure that no contractor or
contractor employee will be denied a clearance without an
opportunity for a fair hearing."
Id. at 774. This description hardly constitutes even
notice to the Committee of the nature of the hearings afforded.
Thus, the appropriation could not "plainly show a purpose to bestow
the precise authority which is claimed."
Ex parte Endo,
323 U. S. 283,
323 U. S. 303,
note 24 Likewise,
appropriations of specific amounts for the Munitions Board or its
successors, agencies with multifold objectives, without any mention
of the uses to which the funds could be put, cannot be considered
as a ratification of the use of the specified hearing
procedures.
[
Footnote 31]
It is estimated that approximately three million persons having
access to classified information are covered by the industrial
security program. Brown, Loyalty and Security (1958) 179-180;
Association of the Bar of the City of New York, Report of the
Special Committee on the Federal Loyalty-Security Program (1956)
64.
MR. JUSTICE HARLAN, concurring specially.
What has been written on both sides of this case makes
appropriate a further word from one who concurs in the judgment of
the Court, but cannot join its opinion.
Unlike any brother CLARK, who finds this case "both clear and
simple," I consider the constitutional issue it presents most
difficult and far-reaching. In my view, the Court quite properly
declines to decide it in the present posture of the case. My
unwillingness to subscribe to the Court's opinion is due to the
fact that it unnecessarily deals with the very issue it disclaims
deciding. For present purposes, no more need be said than that we
should not be drawn into deciding the constitutionality of the
security clearance revocation procedures employed in this case
until the use of such procedures in matters of this kind has been
deliberately considered and expressly authorized by the Congress or
the President, who alone are in a position to evaluate in the first
instance the totality of factors bearing upon the necessity for
their use. That much the courts are entitled to before they are
asked to express a constitutional judgment upon an issue fraught
with such important consequences both to the Government and the
citizen.
Ample justification for abstaining from a constitutional
decision at this stage of the case is afforded by the Court's
traditional and wise rule of not reaching constitutional issues
unnecessarily or prematurely. That rule, indeed, has been
consistently followed by this Court when faced with "confrontation"
issues in other security or loyalty cases.
See Peters v.
Hobby, 349 U. S. 331;
Vitarelli v. Seaton, 359 U. S. 535;
cf. Service v. Dulles, 354 U. S. 363;
Kent v. Dulles, 357 U. S. 116.
Adherence to that rule is, as I understand it, the underlying basis
of today's decision, and it is on that basis that I join the
judgment of the Court.
Page 360 U. S. 510
It is regrettable that my brother CLARK should have so far
yielded to the temptations of colorful characterization as to
depict the issue in this case as being whether a citizen has "a
constitutional right to have access to the Government's military
secrets," and to suggest that the Court's action today requires
"the President's Cabinet members to revoke their refusal to give"
the petitioner "access to military secrets," despite any views they
may have as to his reliability. Of course, this decision involves
no such issue or consequences. The basic constitutional issue is
not whether petitioner is entitled to access to classified
material, but rather whether the particular procedures here
employed to deny clearance on security grounds were
constitutionally permissible. With good reason, we do not reach
that issue as matters now stand. And certainly there is nothing in
the Court's opinion which suggests that petitioner must be given
access to classified material.
MR. JUSTICE CLARK, dissenting.
To me, this case is both clear and simple. The respondents, all
members of the President's Cabinet, have, after a series of
hearings, refused to give Greene further access to certain
government military information which has been classified "secret."
The pertinent Executive Order defines "secret" information as
"defense information or material the unauthorized disclosure of
which could result in serious damage to the Nation, such as by
jeopardizing the international relations of the United States,
endangering the effectiveness of a program or policy of vital
importance to the national defense, or compromising important
military or defense plans, scientific or technological developments
important to national defense, or information revealing important
intelligence
Page 360 U. S. 511
operations."
Exec.Order No. 10501, Nov. 5, 1953, 18 Fed.Reg. 7049, 3 CFR
(1949-1953 Comp.), p. 979, § 1(b).
Surely one does not have a constitutional right to have access
to the Government's military secrets. [
Footnote 2/1] But the Court says that, because of the
refusal to grant Greene further access, he has lost his position as
vice president and general manager, a chief executive officer, of
ERCO, whose business was devoted wholly to defense contracts with
the United States, [
Footnote 2/2]
and that his training in aeronautical engineering, together with
the facts that ERCO engages solely in government work, and that the
Government is the country's largest airplane customer, has, in some
unaccountable fashion, parlayed his employment with ERCO into "a
constitutional right." What for anyone else would be considered a
privilege, at best, has, for Greene, been enshrouded in
constitutional protection. This sleight of hand is too much for
me.
But this is not all. After holding that Greene has
constitutional protection for his private job, the Court has
ordered the President's Cabinet members to revoke their refusal to
give Greene access to military secrets. [
Footnote 2/3] It
Page 360 U. S. 512
strikes down the present regulations as being insufficiently
authorized by either the President or the Congress because the
procedures fail to provide for confrontation or cross-examination
at Board hearings. Let us first consider that problem.
I
. THE CONSTITUTIONAL ISSUE.
After full consideration, the Court concludes
"that, in the absence of explicit authorization from either the
President or Congress, the respondents were not empowered to
deprive petitioner of his job in a proceeding in which he was not
afforded the safeguards of confrontation and
cross-examination."
In so doing, as I shall point out, it holds for naught the
Executive Orders of both President Roosevelt and President Truman
and the directives pursuant thereto of every Cabinet officer
connected with our defense since 1942, plus the explicit order of
General Dwight D. Eisenhower as Chief of Staff in 1946. In
addition, contrary to the Court's conclusion, the Congress was not
only fully informed, but had itself published the very procedures
used in Greene's case.
I believe that the Court is in error in holding, as it must, in
order to reach this "authorization" issue, that Greene's "right to
hold specific private employment and to follow a chosen profession
free from unreasonable governmental interference" is protected by
the Fifth Amendment. It cites four cases in support of this
proposition, and says "compare" four others. As I read those cases,
not
Page 360 U. S. 513
one is in point. [
Footnote 2/4]
In fact, I cannot find a single case in support of the Court's
position. Even a suit for damages on the ground of interference
with private contracts does not lie against the Government. The
Congress specifically exempted such suits from the Tort Claims Act.
28 U.S.C. § 2680(h). But the action today may have the effect
of bypassing that exemption, since Greene will now claim, as has
Vitarelli,
see Vitarelli v. Seaton, 359 U.
S. 535 (1959), reimbursement for his loss of wages.
See Taylor v. McElroy, post p.
360 U. S. 709.
This will date back to 1953. His salary at that time was $18,000 a
year.
In holding that the Fifth Amendment protects Greene, the Court
ignores the basic consideration in the case, namely, that no
person, save the President, has a constitutional right to access to
governmental secrets. Even though such access is necessary for one
to keep a job
Page 360 U. S. 514
in private industry, he is still not entitled to the secrets. It
matters not if, as a consequence, he is unable to secure a specific
job, or loses one he presently enjoys. The simple reason for this
conclusion is that he has no constitutional right to the secrets.
If access to its secrets is granted by the Government, it is
entirely permissive, and may be revoked at any time. That is all
that the Cabinet officers did here. It is done every day in
governmental operation. The Court seems to hold that the access
granted Greene was for his benefit. It was not. Access was granted
to secure for the Government the supplies or services it needed.
The contract with ERCO specifically provided for the action taken
by the Cabinet officers. Greene, as General Manager of ERCO, knew
of its provisions. If every person working on government contracts
has the rights Greene is given here, the Government is indeed in a
box. But, as was said in
Perkins v. Lukens Steel Co.,
310 U. S. 113,
310 U. S.
127-128:
"Like private individuals and businesses, the Government enjoys
the unrestricted power to produce its own supplies, to determine
those with whom it will deal, and to fix the terms and conditions
upon which it will make needed purchases. . . . Judicial restraint
of those who administer the Government's purchasing would
constitute a break with settled judicial practice, and a departure
into fields hitherto wisely and happily apportioned by the genius
of our polity to the administration of another branch of
Government."
The Court refuses to pass on the constitutionality of the
procedures used in the hearings. It does say that the hearings
provided for in the program permit the restraint of "employment
opportunities through a denial of clearance without the safeguards
of confrontation and cross-examination." I think the Court confuses
administrative
Page 360 U. S. 515
action with judicial trials. This Court has long ago and
repeatedly approved administrative action where the rights of
cross-examination and confrontation were not permitted.
Chicago
& Southern Air Lines v. Waterman S.S. Corp., 333 U.
S. 103 (1948);
Carlson v. Landon, 342 U.
S. 524 (1952);
United States v. Nugent,
346 U. S. 1 (1953);
United States v. Reynolds, 345 U. S.
1 (1953);
Knauff v. Shaughnessy, 338 U.
S. 537 (1950);
Shaughnessy v. Mezei,
345 U. S. 206
(1953), and
Jay v. Boyd, 351 U. S. 345
(1956).
At no time since the programs now in vogue were established in
1942 have the rights of cross-examination and confrontation of
witnesses been required. In fact, the present regulations were
patterned after the Employee Loyalty Program, first inaugurated
upon the passage of the Hatch Act in 1939, in which the rights of
confrontation and cross-examination have never been recognized.
Every Attorney General since that time has approved these
procedures, as has every President. And it should be noted, though
several cases here have attacked the regulations on this ground,
this Court has yet to strike them down. [
Footnote 2/5]
I shall not labor the point further than to say that, in my
opinion, the procedures here do comport with that fairness required
of administrative action in the security field. A score of our
cases, as I have cited, support me in this position. Not one is to
the contrary. And the action of the Court in striking down the
program for lack of specific authorization is indeed strange, and
hard for me to understand at this critical time of national
emergency. The defense establishment should know -- and now --
whether its program is constitutional and, if not, wherein
Page 360 U. S. 516
it is deficient. I am sure that it will remember that, in other
times of emergency -- no more grave than the present -- it was
permitted, without any hearing whatsoever -- much less with
confrontation and cross-examination -- to remove American citizens
from their homes on the West Coast and place them in concentration
camps.
See Hirabayashi v. United States, 320 U. S.
81 (1943);
Korematsu v. United States,
323 U. S. 214
(1944). My examination of the Japanese exclusion orders indicates
clearly that the Executive Order was a general authorization, just
as the two here. Congress at the time only created criminal
offenses for violation of exclusion or curfew orders of the
military commander. Likewise, we have criminal statutes here. And
while the Japanese orders were in time of war, those involved here
had their inception in war, and have been continued during the
national emergency declared by the President. No one informed in
present world affairs would say that our safety is less in jeopardy
today. In fact, we are now spending nearly as much money to protect
it as during the war period. In this light, it is inescapable that
the existing authorizations are entirely sufficient. Let us examine
them.
II
. THE PRESIDENT AND THE CONGRESS HAVE GRANTED
SUFFICIENT AUTHORITY TO THE CABINET OFFICERS
Since 1941, the industrial security program has been in
operation under express directives from the President. Within a
week after the attack on Pearl Harbor, President Roosevelt issued
Exec.Order No. 8972, 6 Fed.Reg. 6420, Dec. 12, 1941, which
authorized both the Secretary of War and the Secretary of the
Navy
"to establish and maintain military guards and patrols,
and
to take other appropriate measures, to protect from injury and
destruction national defense material, national defense premises,
and national defense utilities. . . ."
(Emphasis added.)
Page 360 U. S. 517
In 1942, under the authority of that Executive Order, the
Secretary of War undertook the formulation and execution of a
program of industrial security. [
Footnote 2/6] The procedures in operation from 1942 and
1943 are outlined in a 1946 publication of the Department of War
entitled "Suspension of Subversives from Privately Operated
Facilities of Importance to the Security of the Nation's Army and
Navy Programs." [
Footnote 2/7]
Interestingly enough, the instructions were issued in time of
peace, did not give the suspect a hearing, and were signed by the
then Chief of Staff -- now President -- Dwight D. Eisenhower.
In 1947, the National Security Act, 61 Stat. 495, effected a
reorganization of the military departments and placed the Secretary
of Defense at the head of the National Military Establishment.
Section 305(a) of the Act transferred to the new organization
"[a]ll laws, orders, regulations, and other actions applicable with
respect to any function . . . transferred under this Act. . . ."
Section 213 created a Munitions Board
Page 360 U. S. 518
within the military establishment and under the supervision of
the Secretary of Defense. Among its functions were
"(1) to coordinate the appropriate activities within the
National Military Establishment with regard to industrial matters,
including the procurement . . . plans . . . ; (2) to plan for the
military aspects of industrial mobilization; . . . and (10) to
perform such other duties as the Secretary of Defense may direct.
[
Footnote 2/8]"
In his first report to the President in 1948, Secretary of
Defense Forrestal reported that:
". . . the Munitions Board is responsible for necessary action
to coordinate internal security within the National Military
Establishment with regard to industrial matters. This work is being
planned, and in some phases carried forward, by the following
programs:"
"
* * * *"
"
c. Development of plans and directives to protect
classified armed forces information in the hands of industry from
potential enemies;"
"
d. Establishment of uniform methods of handling of
personnel clearances and secrecy agreements. . . ."
First Report of the Secretary of Defense (1948) 102-103.
The forerunner of the exact program now in effect was put in
operation in 1948 under the supervision of that Board. And, in the
Annual Report to the President, in 1949, the Secretary, then Louis
Johnson, reported that
"
Industrial Security. -- A program to coordinate and
develop uniform practices to protect classified military
Page 360 U. S. 519
information placed in the hands of industry under procurement
and research contracts was continued by the Munitions Board.
Criteria were developed for the granting or denial of personnel and
facility clearances in the performance of classified contracts.
Work was started to establish a central security clearance register
to centralize clearance data for ready reference by all
departments, and to prevent duplication in making clearance
investigations. A joint Personnel Security Board administers this
program, and the Industrial Employment Review Board hears appeals
from security clearance denials."
Second Report of the Secretary of Defense, for the Fiscal Year
1949 (1950) 85. Transmitted with that report to the President was
the Annual Report of the Secretary of the Army, where the number of
security cases processed by the Army-Navy-Air Force Personnel
Board, and the number of appeals handled by the Industrial
Employment Review Board, were detailed. [
Footnote 2/9]
Again in 1950, the Secretary of Defense informed the President,
in a report required by law, of the status of the industrial
security program.
"In the past 6 months, the Munitions Board activated the
Industrial Employment Review Board, established procedures under
which the latter will operate, and developed a set of uniform
criteria stipulating the circumstances under which security
clearances will be denied. The Munitions Board also established a
Central Index Security Clearance File to serve as a clearing house
for all individual and facility clearances and denials, [and]
developed a standard security requirements check list. . . .
Page 360 U. S. 520
Uniform standards for security investigations of facility and
contractors' personnel are being developed. . . . A standard
military security agreement is being coordinated to bind potential
suppliers to security regulations before a classified contract is
awarded, and a manual to give security guidance to industry is
being prepared."
Semiannual Report of the Secretary of Defense, July 1 to Dec.
31, 1949 (1950) 97.
The President, in 1953, in Reorganization Plan No. 6, 67 Stat.
638, transferred all of the "functions of the Munitions Board" to
the Secretary of Defense and dissolved that Board. Since then the
program has been in operation under the authority of the Secretary.
Also in 1953, the President issued Exec.Order No. 10450, Apr. 27,
1953, 18 Fed.Reg. 2489, 3 CFR (1949-1953 Comp.), p. 936. That order
dealt with the criteria and procedures to be used in the Federal
Loyalty Security Program, which had been instituted under
Exec.Order No. 9835, 12 Fed.Reg. 1935, 3 CFR (1943-1948 Comp.), p.
630, Mar. 21, 1947. The latter order made clear that federal
employees suspected of disloyalty had no right of confrontation.
[
Footnote 2/10] And the
regulations promulgated under the order provided no such right.
See 13 Fed.Reg. 9365, 5 CFR (1949), § 210, Dec. 31,
1948. These procedures were revised under Exec.Order No. 10450,
supra, although, again, confrontation and
cross-examination were not provided.
See
Page 360 U. S. 521
19 Fed.Reg. 1503, 32 CFR, p. 288, Mar. 19, 1954. Thus, it was
clear that the President had not contemplated that there would be a
right of confrontation in the Federal Loyalty Security Program. And
the report of the Secretary of the Army -- transmitted to the
President by the Secretary of Defense -- made clear that the
criteria of Exec.Order No. 10450 were being utilized not only where
the loyalty of a government employee was in doubt, but also in
carrying out the industrial security program. Semi-annual Report of
the Secretary of the Army, Jan. 1, 1954, to June 30, 1954,
135-136.
Thus, we see that the program has for 18 years been carried on
under the express authority of the President, and has been
regularly reported to him by his highest Cabinet officers. How the
Court can say, despite these facts, that the President has not
sufficiently authorized the program is beyond me, unless the Court
means that it is necessary for the President to write out the
Industrial Security Manual in his own hand.
Furthermore, I think Congress has sufficiently authorized the
program, as it has been kept fully aware of its development and has
appropriated money to support it. During the formative period of
the program, 1949-1951, the Congress, through appropriation
hearings, was kept fully informed as to the activity. In 1949, D.
F. Carpenter, Chairman of the Munitions Board, appeared before a
Subcommittee of the House Committee on Appropriations to testify
concerning the requested appropriation for the Board. While the
report indicates much of the testimony was "off the record," it
does contain specific references to the program here under attack.
[
Footnote 2/11] Significantly,
the appropriation bill for 1950 included an item
Page 360 U. S. 522
of $11,300,000 for the maintenance,
inter alia, of the
Board.
Again, in 1950, General Timberlake, a member of the Board,
testified:
"Then we are going to intensify the industrial mobilization
planning within the Department of Defense, with particular emphasis
on industrial security. . . ."
House of Representatives, Hearings before a Subcommittee of the
Committee on Appropriations on the Supplemental Appropriation for
1951, 81st Cong., 2d Sess. 264. While, again, some of the testimony
was "off the record" it was sufficiently urgent and detailed for
the Congress to appropriate additional funds for the Board for
1951. [
Footnote 2/12]
By the 1953 Reorganization Plan, the functions of the Munitions
Board were transferred to various Assistant Secretaries of Defense.
The industrial security program was put under the Assistant
Secretary of Defense for Manpower, Personnel, and Reserve Forces.
Of course, this office received an appropriation each year. These
hearings, to cite but two, certainly indicate an awareness
Page 360 U. S. 523
on the part of Congress of the existence of the industrial
security program, and the continued appropriations hardly bespeak
an unwillingness on the part of Congress that it be carried on. In
1955, the Eighty-fourth Congress, on the motion of Senator Wiley
for unanimous consent, caused to be printed the so-called Internal
Security Manual, S. Doc. No. 40, 84th Cong., 1st Sess. It is a
compilation of all laws, regulations, and congressional committees
relating to the national security. Contained in the volume is the
"Industrial Personnel Security Review Regulation,"
i.e., a
verbatim copy of the regulations set up by the Secretary of Defense
on February 2, 1955. This Manual outlined in detail the hearing
procedures which are here condemned by the Court. And it is
important to note that the final denial of Greene's clearance was
by a Board acting under these very regulations. Still not one voice
was raised either within or without the Halls of Congress that the
Defense Department had exceeded its authority, or that contractor
employees were being denied their constitutional rights. In other
cases, we have held that the inaction of the Congress, in
circumstances much less specific than here, was a clear
ratification of a program as it was then being carried out by the
Executive. Why, I ask, do we not do that here where it is so vital?
We should not be "that
blind' Court . . . that does not see
what `[a]ll others can see and understand' . . . " United
States v. Rumely, 345 U. S. 41,
345 U. S. 44
(1953).
While it certainly is not clear to me, I suppose that the
present fastidiousness of the Court can be satisfied by the
President's incorporating the present industrial security program
into a specific Executive Order or the Congress' placing it on the
statute books. To me, this seems entirely superfluous in light of
the clear authorization presently existing in the Cabinet officers.
It also subjects the Government to multitudinous actions -- and
perhaps large
Page 360 U. S. 524
damages -- by reason of discharges made pursuant to the present
procedures.
And I might add a
nota bene. Even if the Cabinet
officers are given this specific direction, the opinion today, by
dealing so copiously with the constitutional issues, puts a cloud
over both the Employee Loyalty Program and the one here under
attack. Neither requires that hearings afford confrontation or
cross-examination. While the Court disclaims deciding this
constitutional question, no one reading the opinion will doubt that
the explicit language of its broad sweep speaks in prophecy. Let us
hope that the winds may change. If they do not, the present
temporary debacle will turn into a rout of our internal
security.
[
Footnote 2/1]
My brother HARLAN very kindly credits me with "colorful
characterization" in stating this as the issue. While I take great
pride in authorship, I must say that, in this instance, I merely
agreed with the statement of the issue by the Solicitor General and
his co-counsel in five different places in the Brief for the United
States.
See pp. 2, 17, 19, 29, 59.
[
Footnote 2/2]
ERCO agreed in its government contract, as was well known to
Greene, to exclude any individual from any part of its plant at
which work under the contract was being performed who had not been
cleared by the Navy for access to military secrets.
[
Footnote 2/3]
Brother HARLAN states that I suggest
"that the Court's action today requires 'the President's Cabinet
members to revoke their refusal to give' the petitioner 'access to
military secrets,' despite any views they may have as to his
reliability. . . ."
Government officials, well versed in the application of this
Court's judgments to the practicalities of government operation,
say that the relief which Greene seeks here -- and which the Court
now grants -- is,
"in substance, a mandatory injunction requiring that the
Government show him (or, in practice, allow contractors to show
him) defense secrets, notwithstanding the judgment of the executive
branch that such disclosure might jeopardize the national
safety."
Brief for the United States 48.
[
Footnote 2/4]
Dent v. West Virginia, 129 U.
S. 114 (1889), held that a West Virginia statute did not
deprive one previously practicing medicine of his rights without
due process by requiring him to obtain a license under the Act.
Schware v. Board of Bar Examiners, 353 U.
S. 232 (1957), likewise a license case, did not pass
upon the "right" or "privilege" to practice law, merely holding
that, on the facts, the refusal to permit Schware to take the
examination was "invidiously discriminatory." In
Peters v.
Hobby, 349 U. S. 331
(1955), the Court simply held the action taken violated the
Executive Order involved. The concurring opinion, Douglas, J., p.
349 U. S. 350,
went further, but alone on the question of "right." The Court did
not discuss that question, much less pass upon it.
Slochower v.
Board of Education, 350 U. S. 551
(1956), held that the summary dismissal without further evidence by
New York of a school teacher because he had pleaded the Fifth
Amendment before a United States Senate Committee violated due
process. The case merely touched on the "right" to plead the Fifth
Amendment, not to "property" rights.
Truax v. Raich,
239 U. S. 33
(1915);
Allgeyer v. Louisiana, 165 U.
S. 578 (1897), and
Powell v. Pennsylvania,
127 U. S. 678
(1888), were equal protection cases wherein discrimination was
claimed. Greene alleges no discrimination.
[
Footnote 2/5]
See Bailey v. Richardson, 86 U.S.App.D.C. 248, 182 F.2d
46,
affirmed by an equally divided Court, 341 U.S. 918
(1951);
Peters v. Hobby, 349 U. S. 331
(1955).
[
Footnote 2/6]
Report of the Commission on Government Security (1957), S.Doc.
No. 64, 85th Cong., 1st Sess. 237, n. 7.
[
Footnote 2/7]
War Department Pamphlet No. 32-4 (1946) provided both criteria
and procedures for removal of subversives. The basic criterion was
"good cause to suspect an employee of subversive activity . . .",
the latter being defined as "sabotage, espionage, or any other
wilful activity intended to disrupt the national defense program."
The basic procedure for removal was set out in � 10:
"10. When adequate investigation has revealed that there is good
cause to suspect an employee of subversive activity on a national
defense project of importance to Army or Navy procurement, the
vital success of the project, as well as the security of the loyal
employees, may require that the Army or Navy, without revealing the
nature or source of its evidence, request the immediate removal of
such individual from the project. To this end, the cooperation of
the organizations representative of organized labor is solicited
for the following program: . . ."
Clearly this procedure did not anticipate confrontation or
cross-examination.
[
Footnote 2/8]
The National Security Act Amendments of 1949, 63 Stat. 578,
amended § 213 so as to delete subparagraph 10.
[
Footnote 2/9]
Annual Report of the Secretary of the Army for the Fiscal Year
1949 (1950) 192.
[
Footnote 2/10]
Part IV, § 2 of Exec.Order No. 9835 specifically stated
that:
". . . the investigative agency may refuse to disclose the names
of confidential informants, provided it furnishes sufficient
information about such informants on the basis of which the
requesting department or agency can make an adequate evaluation of
the information furnished by them, and provided it advises the
requesting department or agency in writing that it is essential to
the protection of the informants or to the investigation of other
cases that the identity of the informants not be revealed. . .
."
[
Footnote 2/11]
House of Representatives, Hearings before the Subcommittee of
the Committee on Appropriations on the National Military
Establishment Appropriation Bill for 1950, 81st Cong., 1st Sess.
91.
[
Footnote 2/12]
The reason for the dearth of legislative reference to the
program appears in some 1955 hearings on an appropriation bill.
Under consideration at the time was a proposal for a fund to
reimburse contractor employees who had been suspended during a
security check and subsequently cleared. General Moore testified
that, in the past, such reimbursement had been made by the service
secretaries out of their contingency funds. Then followed this
colloquy:
"Mr. Mahon. Under that [the contingency fund], you can buy a boy
a top, or a toy, provided the Secretary of Defense thinks it is
proper?"
"Gen. Moore. That is right, and we come down here and explain to
this committee with respect to this in a very secret session how
much we have spent and precisely what we have spent it for."
House of Representatives, Hearings before the Subcommittee of
the Committee on Appropriations on Department of Defense
Appropriations for 1956, 84th Cong., 1st Sess. 780.