Yes, and they knew everything that was going on. We didn’t know it at the time but this was the peak of the Walker Spy Ring penetration, and the Soviets were reading all of our KW-7 traffic.
I have personally loaded hundreds of KW-7's with 7314 cards, hundreds of times.
Thing is about the Walker thing, is the Soviets didn't get the cards until a few weeks after they were used and could only decrypt traffic they had previously recorded.