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She refused to testify because by doing so meant she would have to answer questions about other people in the movie industry, instead of just answering questions about her own beliefs and activities. She had actually sent a letter stating she would gladly give up her 5th amendment rights to testify if the committee would not ask her any questions about other "Hollywood" people. After their refusal, she invoked her 5th amendment rights and refused to testify.

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Q: Why did Lillian Hellman refuse to testify before the House UN-American Activities Committee?
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