What I got from that was a person, possibly within the FBI whose name is blackened out, sent a memo to the director regarding communism in Hollywood and in that person's OPINION, IaWL is communist propoganda. That IN NO WAY means the FBI believed this or supported this person's opinion.
Notice how this non-story ties right in with the blogger's rhetorical questioning:
"We can look back at the FBI report with scorn and ridicule. But are we really that much more enlightened today as a society?"
Never mind that it's not a "report", it's a memo.
I thought it was acceptable for private citizens to send "reports" to the FBI, which would then be included in a file even if there was little merit to the charge.