in part from the Soviet government. The FBI had Phillip Jaffe under audio surveillance during the Amerasia investigation and overheard Jaffe discussing with Andrew Roth various possible contacts for information from government sources. Roth told Jaffe that Karr could obtain "a lot of stuff on the Far Eastern things that the other guys don't get because of his Treasury connections. He goes up once a week with Harry"." Jaffe inquired as to whether this was Harry Dexter White, already under suspicion for communicating information to the Soviet Union; Roth stated that it was. In 1950, Senator Joseph McCarthy referred to Karr as Pearson's "KGB controller". Karr later began a series of articles on the use of public relations in business takeovers. In 1959, Karr became CEO of the Fairbanks-Whitney Corporation, a large defense contractor whose divisions included Colt Firearms. After three years the shareholders dismissed him. Karr then turned to film and hotel businesses, and in 1971, he became associated with Armand Hammer, who expanded Karr's contacts and business opportunities in the Soviet Union. Karr became a good friend of the son-in-law of Soviet Premier Alexei Kosygin, Dzherman Gvishiani, and was granted both North and South American trademark rights to Misha the Bear, the mascot of the 1980 Olympic games. Along with Hammer, he formed a joint venture to make and sell Olympic commemorative coins, an enterprise estimated to be worth some U.S. $200 million. Karr frequently boasted of having close ties with prominent US senators and presidential candidates and that he transmitted information between the Soviet and American governments on such issues as détente, trade, and strategic-arms negotiations. Karr, then living in Paris, headed a Franco-American firm called Finatec. According to KGB files, Karr arranged meetings between Sen. Edward Kennedy and Soviet leaders. A KGB file describes Kennedy in 1978 trying to help a close friend, former Senator John V. Tunney of California, get some business in the Soviet Union. In 1992, Yevgenia Albats, a Russian journalist assigned by the Russian Parliament to examine the archives after the aborted Soviet coup attempt of 1991, quoted "an extremely top secret KGB memo to Soviet leaders:" In late 1978, as Occidental Petroleum was attempting an unfriendly takeover of the Mead Corporation, Karr told a bizarre story in secret testimony before the Securities and Exchange Commission. Karr said that one night in 1972, he was summoned to a hotel in Moscow to