At 06:28 in Part 2, or at 21:42 in full version, you will hear::
John Loftus: The UFO files were hilarious. After WW2 we wanted to monitor Russian progress towards the atomic bomb, so we came up with a series of these gigantic balloons. They were three stories high, made of an early British mylar, with a geiger counter and a tape recorder. And they launched these things in California, across the U.S., over Russia then come round the Pacific. One day one of the balloons crashed - true story - in Roswell, New Mexico. And this was our biggest top-secret spy [instrument?] on the Soviet Union. And the public's out there, and someone in the crowd just looks at the half-deflated balloon and said "It looks like a flying saucer."
And a very brave young army captain grabbed up all the pieces of the fabric [that] he could and spread the word that a flying saucer had crashed in Roswell and the army was covering it up. And that's the story that the press went with, the next day! The Soviets paid no attention. We kept flying the balloons until 1952. The cover-up story worked so well.
Interviewer: Now that's not to discount the issue of Unidentified Flying Objects being an entirely legitimate pursuit, and another question...
JL: The point is, how can the public tell what's real and what's not? There's just so many lies, that's all..
Interviewer: That's been a problem.
JL: We actually had a plant in Canada that manufactured little flying saucers for us. They would use them to buzz passenger planes and other military planes.
Interviewer: Really? You came across documents about this?
JL: Oh...[unintelligible]..look up Avro Aviation...
Interviewer: Okay, okay.
JL: They made little flying saucers, they eventually turned the thing over to the Pentagon. They couldn't straighten out the steering. But it was a cute little scheme so it went for years! They [used them for?] advanced weapons testing, they did it under cover, over a UFO.
Interviewer: It's been used for a long time, the whole phenomenon, to hide all kinds of things. What you're saying is it successfully fooled the Russians until 1952, at least. Very interesting.