Appendix H:

From the Phoenix Letter, January 1986
Issue (Research Publication, P.O. Box
39850, Phoenix, Arizona 85069)

Secret U.S.-Soviet Group Plots Treason

A secret U.S.-Soviet operating group based in New York is acting in a manner strongly suggesting treason by its American members —and we do not use the word treason lightly.

We have circulated certain information in our possession to close associates. Without exception they are shocked, shaken, disbelieving... and angry.

Before we spell out the details for you, how do we define treason? Treason is defined in the Constitution as "aid and comfort" to an enemy of the United States.

Second, following this how do we define an enemy? We spend $300 billion a year on defense against the Soviet Union, so logically the Soviet Union is an enemy. We cannot SIMULTANEOUSLY have a $300 billion defense budget against the Soviet Union and give "aid and comfort" for the Soviet military structure without raising the question of treason.

This topic is discussed at length in a forthcoming book, The Best Enemy Money Can Buy.

Who is this secret group? Why do we suggest treason?

US-USSR Trade And Economic Council, Inc. (TEC, for short)

This bland official sounding title disguises a formal joint Soviet-American apparatus to conduit advanced technology with pure military applications to the Soviet Union.

The information that follows raises a distinct possibility that Administration "spy trials" and pious proclamations against aiding the Soviets are so much hogwash... a smokescreen.

This TEC group has official sanction and backing. It links to Bush elements in the White House, the National Association of Manufacturers, the U.S. Chamber of Commerce, and assorted Senators and Congressmen with more political ambition than common sense.



Now hear this:

We acquired a partial list from a confidential source (reprinted on page 245). We know this partial list is accurate. We also know 500 copies of the membership list exist — so it's only a matter of time and persistence until we access the full list.

TEC claims backing from Vice President Bush (Skull & Bones) and Commerce Secretary Malcolm Baldrige, Jr. (son of S&B member Malcolm Baldrige). This makes TEC a quasi-public institution. Therefore, the public has a RIGHT TO DEMAND THE MEMBERSHIP LIST.

Why all the secrecy? Read on.

What We Know About TEC:


Partial List of Membership

U.S.-U.S.S.R. Trade & Economic Council Inc.

Abbott Laboratories Garnac Grain
Allen Bradley Gleason Corporation
Alliance Tool Corporation Hope Industries
Allied Analytical Systems Ingersoll Rand
Allis Chalmers International Harvester
American Cyanamid Kodak
American Express Marine Midland
Archer Daniels Midland Millipore Inc.
Armco Steel Minnesota Mining
Bunge Corporation Monsanto
Cargill Occidental Petroleum
Caterpillar Owens Illinois
Chase Manhattan Pepsi Co.
Chemical Bank Phibro-Salomon
Clark Equipment Phillip Morris
Coca Cola Ralston Purina
Con Agra Rohm & Haas
Continental Grain Seagram
Corning Glass Stauffer Chemical
Deer & Company Tendler-Beretz Associates
Dow Chemical Tenneco Inc.
Dresser Industries Union Carbide
E. I. DuPont Unit Rig & Equipment Company
FMC Corporation Xerox

Alfred J. Mutter, The Key U.S. Operative

The key American operative in the New York office of TEC is ALFRED J. MURRER, former Chairman of the Gleason Works, a large machine tool firm in Rochester, New York with plants in Belgium and West Germany.

Murrer works closely day to day with the Soviet engineers. For our example here we select Alexander Y. Markov, listed as a Project Engineer. These two men jointly screen American business companies and if they find the offered technology interesting, attempt to draw the firm into the TEC net.

We can dismiss Alexander Markov briefly. Markov is a Soviet citizen, chemical engineer, suspected KGB, resident in New York for almost three years. Markov's job is to identify the usefulness of technology to the Soviet military complex. As Markov is a Soviet national, the question of treason does not arise. So far as we know Markov is a patriotic Soviet citizen doing his job. His only defect (that we have identified) is a habit of chainsmoking Turkish type oval cigarettes which overwhelms American visitors (unused to the pungent odor) in clouds of smoke.

Alfred Murrer deserves more attention because he is a U.S. citizen, born Rochester, New York 1923, educated MIT and University of Rochester. Before joining TEC, Murrer was Chairman of the Board of the Gleason Works, with 42 years service.

The Gleason Works is a long established prescision tool maker specializing in precision machine tools for cutting and grinding straight, zerol, spiral, bevel, hyphoid gears and curvic couplings with associated tooling and equipment.

It is vital to note that Gleason Works is in bad financial shape, with heavy losses during the past few years.

Every last machine tool produced by Gleason Works has military applications. We know from experience that there is no purely civilian industry in the Soviet Union. All plants are first and foremost military plants. All technology is examiend first and foremost for military applications. This was demonstrated 20 years ago in my three volume WESTERN TECHNOLOGY AND SOVIET ECONOMIC DEVELOPMENT and since confirmed by dozens of defecting Soviet engineers. This thesis is accepted today by Department of Defense and Central Intelligence Agency. (It is not accepted by Department of State, which operates in a fantasy world of its own making.)

What is the relationship between the financially troubled Gleason Works and the Soviet Union TODAY?

At end 1985 Gleason had a gear-cutting machine population in the Soviet Union in excess of 2500 units, including over 300 at the Kama River Truck Plant, which produces military vehicles for Afghan genocide.

Gleason has trained more than 300 Soviet engineers (actually technicians, but the Soviets classify them as engineers) to maintain these Gleason machines. Their end use is preeminently military.

Gleason services this 2500 machine tool population out of its Rochester, New York and Badour, Belgium plants. In addition, Gleason is building a gear arbor plant for the Soviets (how this ever passed Export Control is a significant unanswered question).

Gleason's subsidiary, Alliance Tool, supplies equipment and systems for manufacture of carbide tooling, vital for many military applications.

Mutter Uses Deceit To Entice U.S. Firms Into The TEC Net

American businessmen faced by a Soviet national would presumably be cautious about disclosing technology of military significance. At least one would hope that is the case. However, an American faced by another American would assume that his guard can be dropped because the American negotiator is looking out for U.S. national interests.

In the case of TEC we have evidence that American nationals in the organization are working for the Soviet side. Specifically we have evidence that Murrer is using deceit, i.e., false statements, to entice U.S. businessmen to transfer technology to the Soviet Union.

Alfred Murrer made the following statement to an American businessman (whom we shall call "X") in the presence of Alexander Markov. Businessman "X" was concerned that his technology might be copied by the Soviets. Not unreasonable, because every New York taxi driver and Chicago bartender knows the Soviets copy our technology.

When businessman "X" queried Murrer about this possibility, Murrer made the following reply:

"No. The Japanese went over a new Gleason cutter with rulers and cameras 'after hours' at a 1965 NMTBA Show (National Machine Tool Builders' Association) to duplicate it. The Soviets would not do this."

This is a demonstrably untrue statement. It is, of course, common knowledge that the Soviets operate copying centers to duplicate the most useful of Western technology. What is highly significant is that Gleason gear-cutting machines have been duplicated by the Soviets without permission. As Murrer worked 42 years for Gleason and ended up as Chairman of the Board, Murrer knows this.

Here is an extract from a State Department report (Decimal File 861.797/37):

"Engineers sent by firms were offered individual contracts to stay and work directly for Soviet organizations in order to copy foreign equipment. J. Ubanik, at the (former) Stalin Auto Plant, reported that after copying several of the old Gleason machines, the Soviets tried to enlist his assistance in copying a new Gleason gearmaking machine."

Why would Murrer attempt to deceive a fellow American in favor of the Soviet Union? Particularly when it involves technology with military end use?

If any reader cares to argue this point with Alfred Murrer personally, his private telephone number at the US-USSR Trade and Economic Council is: (212) 644-4568. If they change it, try the general offices of US-USSR Trade and Economic Council at (212) 644-4550.

The address is: 805 Third Avenue, New York, NY 10022.




1. The above information generates highly disturbing conclusions.

2. The Administration is conning the American public. The Administration is playing a double game. It creates highly publicized "spy trials" and proclamations about stopping the flow of military technology to the Soviet Union.

Why? Because the Administration knows that over 150 Soviet weapons systems are based on U.S. technology.

3. On the other hand, Mr. Reagan has ordered a step-up in transfers and the Administration is supporting a Soviet technical vacuum operation in New York. The Administration is checking the flow of "secrets" for public consumption while secretly aiding the transfer of technology behind the scenes to manufacture the previously stolen "secrets."

4. Don't waste your time writing angry letters to your Congressman. They don't know enough or claim it's all perfectly legal. The vital task ahead in 1986 is to make the information — and more in our files — widely known. We are lifting the copyright on this issue. Please xerox and circulate as widely as you can.

5. We have to organize a nationwide conference on TECHNICAL TRANSFERS: IS IT TREASON?, with all the many concerned people, organizations and interests. This means we have to forget incidental differences and unite on this one issue, i.e., the survival of the United States, at least until we achieve a sane policy. More next month.