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On February 7, 1950, three days before McCarthy's acclaimed Wheeling West Virginia speech, Hoover testified before House Appropriations Committee that [[Glossary_of_espionage_terms#Counterintelligence|counterespionage]] requires "an objective different from the handling of criminal cases. It is more important to ascertain his contacts, his objectives, his sources of information and his methods of communication" as "arrest and public disclosure are steps to be taken only as a matter of last resort." He concluded that "we can be secure only when we have a full knowledge of the operations of an espionage network, because then we are in a position to render their efforts ineffective." <ref>[http://www.fbi.gov/libref/historic/history/foxpaper.htm In the Enemy’s House: Venona and the Maturation of American Counterintelligence], John F. Fox, Jr., FBI Historian, Presented at the 2005 Symposium on Cryptologic History, 10/27/2005. </ref>

On February 7, 1950, three days before McCarthy's acclaimed Wheeling West Virginia speech, Hoover testified before House Appropriations Committee that [[Glossary_of_espionage_terms#Counterintelligence|counterespionage]] requires "an objective different from the handling of criminal cases. It is more important to ascertain his contacts, his objectives, his sources of information and his methods of communication" as "arrest and public disclosure are steps to be taken only as a matter of last resort." He concluded that "we can be secure only when we have a full knowledge of the operations of an espionage network, because then we are in a position to render their efforts ineffective." <ref>[http://www.fbi.gov/libref/historic/history/foxpaper.htm In the Enemy’s House: Venona and the Maturation of American Counterintelligence], John F. Fox, Jr., FBI Historian, Presented at the 2005 Symposium on Cryptologic History, 10/27/2005. </ref>

With regard to the alleged statement by McCarthy saying that, "I have here in my hand a list of 205—a list of names that were made known to the Secretary of State as being members of the Communist Party", the famous "List", as it has come to be known, has always engendered much controversy. The figure of 205 appears to have come from an oral briefing McCarthy had with Hoover regarding espionage suspects the FBI was then investigating.  The FBI had discovered on its own five Soviet agents operating in the United States during World War II; defector Elizabeth Bentley further added another 81 known identities of espionage agents; Venona materials had provided the balance, and by the time a full accounting of true name identities was compiled in an FBI memo in 1957, one more subject had been added to the number, now totaling 206. <ref>[http://en.wikisource.org/wiki/FBI_Synopsis_on_%22Operations_of_the_MGB_Residency_at_New_York,_1944-45%22 FBI Memo Referencing 206 Communists in Government]</ref>

McCarthy is said by some to have made the claim, "I have here in my hand a list of 205—a list of names that were made known to the Secretary of State as being members of the Communist Party." The famous "List", as it has come to be known, has always engendered much controversy. The figure of 205 it appears to have come from an oral briefing McCarthy had with Hoover regarding espionage suspects the FBI was then investigating.  The FBI had discovered on its own five Soviet agents operating in the United States during World War II; defector Elizabeth Bentley further added another 81 known identities of espionage agents; Venona materials had provided the balance, and by the time a full accounting of true name identities was compiled in an FBI memo in 1957, one more subject had been added to the number, now totaling 206. <ref>[http://en.wikisource.org/wiki/FBI_Synopsis_on_%22Operations_of_the_MGB_Residency_at_New_York,_1944-45%22 FBI Memo Referencing 206 Communists in Government]</ref>

Much confusion has always surrounded the subject.  While the closely guarded FBI/Venona information of identified espionage agents uses the number of 206, McCarthy in his Wheeling speech only referred to Communist Party membership, and not espionage activity.  Being a security risk as a CPUSA member does not necessarily entail or imply that a person was or is actively involved in espionage activity.  Venona materials indicated a very large number of espionage agents remained unidentified by the FBI.  When McCarthy was questioned on the number, he referred to the Lee List of security risks, by which it appears Hoover was attempting to match unidentified code names to known security risks. Hoover kept the identities of persons known to be involved in espionage activity from Venona evidence secret. Hoover in the very early days of the FBI's joint investigation with the [[Army Signals Intelligence Service]] in May of 1946 did precisely the same deception with a confidant of [[President Truman]] using Venona decryptions.  Hoover reported that a reliable source revealed “an enormous Soviet espionage ring in Washington.” Of some fourteen names, [[KGB|Soviet agents]] [[Alger Hiss]] and [[Nathan Gregory Silvermaster]] were listed well down the list. The name at the top was “Undersecretary of State [[Dean Acheson]]” and included others beyond reproach, thus discrediting the Hiss and Silvermaster accusations, which actually were on target. Hence the Truman White House always suspected Hoover and the FBI of playing partisan political games with accusations of various administration members’ complicity in Soviet espionage. <ref>[http://www.fas.org/sgp/library/moynihan/foreword.html Moynihan Commission on Government Secrecy, Chairmans Forward], 1997.</ref>

Much confusion has always surrounded the subject.  While the closely guarded FBI/Venona information of identified espionage agents uses the number of 206, McCarthy in his Wheeling speech only referred to Communist Party membership, and not espionage activity.  Being a security risk as a CPUSA member does not necessarily entail or imply that a person was or is actively involved in espionage activity.  Venona materials indicated a very large number of espionage agents remained unidentified by the FBI.  When McCarthy was questioned on the number, he referred to the Lee List of security risks, by which it appears Hoover was attempting to match unidentified code names to known security risks. Hoover kept the identities of persons known to be involved in espionage activity from Venona evidence secret. Hoover in the very early days of the FBI's joint investigation with the [[Army Signals Intelligence Service]] in May of 1946 did precisely the same deception with a confidant of [[President Truman]] using Venona decryptions.  Hoover reported that a reliable source revealed “an enormous Soviet espionage ring in Washington.” Of some fourteen names, [[KGB|Soviet agents]] [[Alger Hiss]] and [[Nathan Gregory Silvermaster]] were listed well down the list. The name at the top was “Undersecretary of State [[Dean Acheson]]” and included others beyond reproach, thus discrediting the Hiss and Silvermaster accusations, which actually were on target. Hence the Truman White House always suspected Hoover and the FBI of playing partisan political games with accusations of various administration members’ complicity in Soviet espionage. <ref>[http://www.fas.org/sgp/library/moynihan/foreword.html Moynihan Commission on Government Secrecy, Chairmans Forward], 1997.</ref>

While the underlying premise of Communists in the government was true, many of McCarthy's targets were not complicit in espionage.  Recent scholarship has established of 159 persons investigated between 1950 and 1952, there is substantial evidence nine had assisted Soviet espionage using evidence from Venona or other sources.  Of the remainder, while not being directly complicit in espionage, many were considered security risks. <ref>[http://www.johnearlhaynes.org/page62.html  Senator Joseph McCarthy’s Lists and Venona], by John Earl Haynes, April 2007.</ref>

While the underlying premise of Communists in the government was true, many of McCarthy's targets were not complicit in espionage.  Recent scholarship has established of 159 persons investigated between 1950 and 1952, there is substantial evidence nine had assisted Soviet espionage using evidence from Venona or other sources.  Of the remainder, while not being directly complicit in espionage, many were considered security risks. <ref>[http://www.johnearlhaynes.org/page62.html  Senator Joseph McCarthy’s Lists and Venona], by John Earl Haynes, April 2007.</ref>

===Known security/loyalty risks===

===Known security/loyalty risks===