In an attempt to mitigate the rumors, Project Sign became Project Grudge in late 1948 but, unlike its predecessor, Grudge began with the official position that UFOs did not exist and attributed the sightings to mass hallucinations. Grudge recognized that, even if UFOs were not real, the Soviets could exploit the American public’s increasing preoccupation with them and weaken citizens’ faith in their government as, for citizens, government denials coupled with continuing sightings a dishonest government makes.
