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April 18, 1973
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Approved For Release 2 0TM CONFIDENTIAL INTERNAL USE ONLY This publication contains clippings from the domestic and foreign press for YOUR BACKGROUND INFORMATION. Further use of selected items would rarely be advisable. Governmental Affairs . . . . . . . . . . Page 1 General . . . . . . . . . . . . . . . . . Page 27 Far East . . . . . . . . . . . . . . . . Page 31 Eastern Europe . . . . . . . . . . . . . Page 38 Near East . . . . . . . . . . . . . . . . Page 39 Africa . . . . . . . . . . . . . . . . . Page 40 Western Hemisphere . . . . . . . . . Page 41 CONFIDENTIAL Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 i? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140061-1 WASHINGTON POST 18 April 1973 0 By Carl Bernstein and Bob Woodward. Weshfncton Poat staff writers President Nixon announced.yester= day that there were "major develop- ments" in, . the.Watergate case and, in a reversal of .his earlier position,- he has agreed to allow his aides to testify; under oath before a Senate committee that is investigating the,affair. The President said he personally "be- gan intensive new inquiries into this whole matter" on March 21 and that "real progress has been made in find- ing the truth." Where previously the President had stated that ? no members of the Write :House staff were involved in the bug- ging of Democratic headquarters, yes, terday he told reporters: "If any person in the executive ,branch' or in the government is in- dicted by the grand jury, my policy will be to immediately suspend him. 'If he is convicted, he will of course,, be automatically discharged." The President's statement was in sharp contrast to 10 months of White I-louse denials of involvement of presi-. dential aides in the Watergate bugging and other ,political espionage and sabo-? tage activities. ? Following Mr. Nixon's brief talk, presidential press secretary Ronald L. Ziegler met.-with reporters and said that all previous White House state-. ments about the bugging were "inoper- ative." Ziegler emphasized: "The Presi-, dent's statement today is the operative statement." Meanwhile, reliable g o v e r n m e n t sources said yesterday that two or three former presidential aides and ad- ministration officials are .currently the focus of the Justice Department's crim- inal investigation and will probably be ,indicted by the federal grand jury in-, vestigating the Watergate espionage. At the same time, White house and Justice Department sources said de- velopments in the case are likely to lead to the resignation of at least two, high White House officials believed by the President to be either directly or indirectly responsible for the Water- gate bugging and other political cspio- ?nage and sabotage. ' One White House aide Said yesterday that the President's language about the possible indictment of persons in the executive branch was carefully chosen and based on knowledge of im- pending indictments. Until yesterday, the President was adamant In. his refusal to allow his aides to testify before a "formal ses- sion" of a congressional committee. He said last month they had "executive privilege" to refuse to disclose confi- dential White House business, and that lie would welcome a court test on the issue. The Senate Watergate committee, led by its chairman. Sen. Sam J. Ervin 'gi kc~ n r Jr. (D-N.C.), was just as insistent in de- manding that presidential aides testi fy under oath and in public. Ervin, said that executive privilege 'could not be invoked in investigations ,of wrongdoing and threatened to ar- rest presidential aides and try them for oontempt of the Senate. if they re- ? fused 'subpoenas. "All members of the White House staff will appear voluntarily when re- quested by the committee," the Presi- dent said yesterday. "They will testify under oath and they will answer fully all proper questions." Mr. Nixon said that his 'aides could still invoke execu- tive privilege-but only on individual questions. Ervin has not disputed this. The President presented his state- ment during a meeting with reporters. It followed weeks of demands by lead- ing Republicans that he speak out about the Watergate and came on a day when the Los Angeles Times re- ported that the President was about to make a dramatic admission of high- level responsibilty for the Watergate- type espionage. ? The first reaction by Republicans to ,the ]resident's statement was favor- able. Sen. Howard Baker Jr. (R-Tenn.), the vice chairman of the Senate invest- igating committee, said of Mr. Nixon's announcement, "We now have the biggest hurdle behind us.' "I'm highly pleased with the Presi- dent's decision," Baker said, "I think it was a good one. I can't resist saying that I've always contended that we - would have White House aides testify, along with everyone else who known anything about this matter. I aifi de- lighted that that optimism now seems' justified. The President has made the determination to re-evaluate the entire. situation, and I commend him for it.". Mr. Nixon said he began his own in- vestigation March 21 "as a result of serious charges which came to my at., tention." ' Ziegler said the President was re-- ferring in part to sworn testimony by" Watergate conspirator James W. Mc- Cord, who has said superiors told him' that at least three presidential asso-. ciates had advance knowledge of the Watergate bugging: former Attorney General John N. Mitchell, presidential: counsel John W. Dean III and former presidential assistant Jeb Stuart Ma- gruder. now a Commerce Department official. Ziegler repeatedly refused to discuss the possibility of whether individual members of the White House staff were involved in the bugging or whether they plan to resign. On num- erous occasions he refused to discuss specific inquiries about Dean, who con- ducted an investigation for President Nixon that cleared all then-current members of the White House staff of involvement in the bugging. He added that since March 21, the President has conducted White House r gate,-, sistance of Assistant Attorney General Henry Petersen, who has headed the Justice Department's criminal investi- gation of the Watergate casd. Ziegler. indicated yesterday that Dean had effectively been removed from any further assignment to in- vestigate the Watergate case, stating, that the President "felt it was not ap- propriate that any member of the White House staff be involved in fur- ther investigation." Earlier, the President had told re- porters that he met Sunday with Peter- sen and Attorney General Richard G. Kleindierist."to review the facts which had come to me in my investigation and also to review the progress of the, Department of Justice investigation." Mr. Nixon added: "I can report today that there have been major develop- ments in the case concerning which it would be improper to be more specific now, except to say that real progress has been made in finding the truth." The President then announced that he will suspend any person in the ex- ecutive branch who might be indicted in the case. "I have expressed to the appropriate authorities my view that no individual holding, in the past or at present, a position of major importance in the ad- .ministration should be given immunity from prosecution," the President said. Ziegler told reporters that the Presi- dent has had "extensive discussions ,with members of the (White House) staff about the situation," but stressed. that Mr. "has looked to Mr. Petersen"-not his own staff-to assist in further investigation. Ziegler was repeatedly asked if he stood by his earlier denials that Dean and White House chief of staff H. R. (Bob) Haldeman had advance knowl- edge of the Watergate bugging. He de-' clined to answer on grounds that he. would not discuss individuals. When asked specifically about the President's Aug. 29 statement that no* one then on the White House staff was involved in the Watergate mat- ter, Ziegler said, "That was a state- ment prior to today's . . ?. The state- ment today is the operative state- ment.". When pressed on the reliability of his own statements, Ziegler said they were based on information available at the time, prior to when the Presi- dent . began his own "intensive new inquiries into this whole matter." Ziegler was reminded that Presi- dent- Nixon called White House coup= sel Dean on March 26, and expressed confidence in him. Ziegler, on the same day, had said that Deab was innocent of any involvement in the Watergate bugging. Asked if he stands behind his statement, Ziegler said: Approved For Re ase 28u1)'0'8/6 "ebFth t- 09432R000100140001-~1 a "Pe 01. >ne . Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 President's 'statement, It would ' be in- appropriate for me to discuss any indi- vidual." Asked whether the White House, duties of either Haldeman or Dean had been altered because of recent developments in the Watergate case, Ziegler said: "'I'm not going to focus on any individual today" and warned reporters that "my refusal to do so should not imply anything." Later, the press secretary said `that , "everyone in the White House staff is in their jobs as previously," and that their duties remain unchanged ex- cept for the President's directive that no 11'h6. ]louse aides be involved in further investigation of the Watergate case. Ziegler refused to say whether the 'President's statement about possible ,criminal action against members of the executive branch applied only to .the. Watergate bugging or to related allegations of widespread political es- pionage and sabotage activities as well. Expanding on a previous White House statement that President Nixon did not meet with former Attorney General Mitchell at the White House last Satur- day, Ziegler said Mitchell had-met with John Ihrlichman, the President's prin- cipal adviser on domestic affairs. Mr. Nixon said that Ehrlichman and Leonard Garment, a special assistant to the President, had been designated by the White House to negotiate with the Senate's Watergate investigating committee. The President's announcement that his assistants would be allowed totes tify before the Senate committee was .a major departure from a past, hard. line White ,House policy that held the doctrine of executive privilege pre- vented the aides from appearing. Only last week Attorney General Klein-. dienst asserted that the President's right to invoke executive privilege is virtually unlimited - that he could prevent any employee of the execu- tive branch from appearing before any congressional hearing, up to and in eluding ,impeachment proceedings. -The doctrine of executive privilege; is an outgrowth of the constitutional principle of separation of powers, in which the three branches of the fed- eral government function somewhat ;independently of one another and are designed to act as checks on one another. In a press conference.i4'Iarch 15, Mr. Nixon invoked both executive privil. ege and separation of powers in de- fending his decision not to allow presidential counsel Dean to appear 'before the Senate committee. The White House announcement yesterday said means had been found both to protect the principle of sepa- ration of powers and allow the presi- ,lential assistants to testify. "I believe now. an agreement has been reached which is satisfactory to both sides," the President said in his statement. "The committee ground rules as adopted totally preserve the doctrine of separation of powers. They provide that the appearance by a witness may, in the first instance, be in executive (closed) session, if appro- priate. "Second, executive privilege (the right not to answer certain questions). is expressly reserved and may be' asserted during the course of the ques- tioning as' to any questions. ' . All members of the 'White House staff will appear voluntarily. when requested by the committee.. They will testify under oath and they.. will answer fully all proper questions.".' Last week during the negotiations between the White House 'and the committee that led up to yesterday's NEW YORK. TIMES 18 April 1973 Text o.ixon's Statement By The Associated Press WASHINGTON, April 17-Following is the text of President Nixon's announcement today concerning the Watergate investigation: I have two announcements to make. ' Because of their technical nnture. I shall read both of the announcements: to the members of the press corps. The first announcement relates to the appearance of White House people before the Senate Select Committee, better known as the Ervin Committee. For several weeks, Senator Ervin and Senator Baker and their counsel have been in contact with White House representatives John Ehrlich- man and Leonard Garment. They have been talking about ground rules which would preserve the, separation of powers without suppressing the fact. I believe now an agreement has been reached which is satisfactory to. both sides. The committee ground rules as adopted totally' preserve the doctrine of separation of powers. They provide that the appearance by a witness may, in the first instance, be in executive session, if ap- propriate. Expressly Reserved Second, executive privilege is expressly reserved and may be asserted during the course of the questioning as to any questions. Now, much has been made of the issue as to whether the proceedings could be tele- vised. To me, this has never been a central issue, especial- ly if the separation of powers problem is otherwise solved, as I now think it is. All members of the White House staff will appear vol- untarily when requested by the committee. They will tes- announcement, Sen. Baker mentioned' specifically that the committee was willing to protect presidential aides against their testimony being turned into "a long and extended television spectacular." in his statement yesterday, the President noted that "much has been made of the issue as to whether the, proceedings could be televised." "To me, this has never been a cen- tral issue, especially if.the separation of powers problem is otherwise solved, as' l now think it is," Mr. Nixon said. ? The President also said the first' appearance by his aides before the Senate Watergate committee might, "if appropriate," be in a' closed-door executive session. Ervin has said in the past, that he would favor the appearance of some witnesses, in an initial closed-door ses- sion. I , The night before Kleindienst met with the President to discuss the case, the Attorney General said that the "Watergate case is going to blow up." In a brief interview with a reporter Saturday night at the White House Cor- respondents' Association dinner. Klein- dienst told a reporter who has been covering the Watergate case "to follow the f!ourage of Your convictions." While declining to elaborate Klein- 'dienst invited two Watergate reporters to his house in Virginia for breakfast Sunday mornng. When th' two reporters showed uv 'ilMr?s. Kleindienst told the reporters mat her husband had been called to the White I-louse and could not discuss the Watergate case with them. Kleindienst called the reporters ,11o0av and apologized for canceling. the break!'ast, adding that he still could not discuss the case or elaborate on his statements of Saturday night, tify under oath and they will, answer fully all proper ques- tions. I should point out that this arrangement is one that cov- ers this hearing only in which, wrongdoing has been charged. This kind of arrangement, of course, would not apply to, other hearings. Each of them will be considered on Its' merits My second announcement concerns the Watergate -case directly. On March 21, as a result of serious charges which came to my attention, some of which were publicly re- ported,. I began intensive new inquiries into this whole matter. Last Sunday afternoon, the Attorney General, Assist- ant Attorney General Peter- sen and I met at length in the E.O.B. [Executive Office Building] to review the facts which had tome to me in my investigation and also to review the progress of the Department of Justice Inves- tigation. Major Developments I can report today that there have been major devel- opments in the case concern- ing which it would be im- proper to be more specific now, except to say that real progress has been made in' finding the truth. If any person in the execu- tive branch or in the Govern- ment is indicted by the grand . jury, my policy will be to im- mediately suspend him. If he is convicted, he will, of course, be automatically dis- charged. I have expressed to the ap- propriate authorities my view that no individual holding, in the past or at present, a posi- tion of major importance in the Administration should be given immunity from prose- cution. . ., The judicial process is moving ahead as it should; and I shall aid it in all ap- propriate ways and have so informed the appropriate au- thorities. As I have said before and I have said throughout this entire matter, all Government employes and especially White House staff employes are expected fully to cooper- ate in this matter. I condemn any attempts to cover up in this case, no matter who is involved. .Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140601-1 E NEW YORK TIMES,,WEDNESDAY, APRIL 18, 1973 Watergate : Inept Burglary With Widening Political by Dwight L. Chapin, the Presi-i By WALTER RUGABER dent's appointments secretary, Special to The \ew York Times WASHINyTON, April 17-, As a public issue, the Water- gate affair began with a brazen but inept burglary exactly 10 months ago today. It .came to embrace a highly complex range of covert and question-i able political activity. I The precise dimensions of each facet of the scandal are far from clear. Most official investigation so far has con- centrated on the three weeks of wiretapping at the Water- gate offices of the. Democratic National Committee. Seven me, including three onetime employes of the White House and the Committee for the Re-election of the Presi- dent, were convicted of that conspiracy in January. Six of them are now in jail and the seventh is telling what he knows to investigators. At least a year before the Watergate burglary of June 17, agents who said they were act- ing on behalf of President Nix- on's re-election effort were in the field, financed by campaign funds in Republican- hands. Sabotage Drive Indicated These agents appear to have spied on the Democratic oppo- sition and, as the campaign be- gan to heat up, they planned and apparently carried out va- rious acts of disruption and sabotage against major Demo- cratic contenders. The most prominent of these operatives - others have been named, but he has come to symbolize pre-Watergate dis- ruption efforts - is a young Southern California lawyer named Donald Henry Segretti. There is no comprehansive pictu're of what Mr. Segrettl and his colleagues intended to do, and did, and some experts .once expressed doubts that their plans, however clandes- tine and unfair, were actually illegal. But Mr. Segretti, according to numerous official and unof- ficial reports, had been hired and paid by Herbert W. Kalm- bach, Mr. Nixon's personal law- yer Mr. Chapin, who left the White House after the cam- paign to become an executive. with United Air Lines, and Gordon C. Strahan, a onetime 'White House aide also linked to the Segretti operation, were recently called before a Feder- al grand jury that has resumed' its investigation of the case. Segretti Testified Mr. Segretti also testified, before the 23-member panel, and a Senate committee in- vestigating the affair has served a subpoena on Mr. Kalmbach to obtain financial and other rec- ords held by the lawyer. The term Watergate also came, to cover a series of financial transactions involv- ' ing President Nixon's campaign organization. Sooner or later, most of them reached a cahs- stuffed safe in the offices of Maurice H. Scans. *Mr. Starts, the former Secre- tary of Commerce who seved as the President's chief fund- raiser, is understood to have given the Watergate grand jury a written statement during its original investigation. He is not known to have testified during the resumed inquiry. Hugh W. Sloan Jr., the finance 'unit's ' treasurer until soon afte the burglary occurred, passed about $200,- 000, most of it in $100 bills, to G. Gordon Liddy, for what the Republicans described as a legitimate intelligence opera- tion. Some of the money was re- covered from the five men arrested in the Watergate break-in. Some of it was also passed through a bank account, .controlled by one of the seven men involved, Bernard L. Barker, who pleaded guilty. Mr. Sloan testified. at Liddy's trial that he had never known what the former White House and re-election committee of- ficial was doing with the money an assertion that the presid- ing judge openly doubted . The re-election committee's !financial transactions drew into the case not only Mr. Stans and Mr. Sloan but also a number of prominent officials who had; been in some way associated' with it. These included such ranking figures as John N. Mitchell, the former Attorney General, and R. R. Haldeman, the. White House chief of staff, and Mr. Kalmbach. Mr. Mitchell was called before the grand jury last year.. Also linked to the secret- fund aspect of the case were such middle-ranking figures as Jeb Stuart Magruder,- deputy director of the campaign; Her- bert L. Porter, the scheduling director, and Frederick C. Larue, a 'commmittee aide. Aside from the activities within the re-election commit- tee, the financial dealings in- volved a series of big-business men and industrial interests who were found to have sent huge sums clandestinely to the- re-election committee. Out of the trial in January came another prime feature of the affair: the feeling, ex- ..pressed increasingly and finally urgently by Republicans in Congress, that the White House. looked as though it had some- thing to hide. The "cover-up" issue took on a definite edge with allegations by one of the convicted con- spirators, James W. McCord Jr., that he and the other de- fendants had been under pres- sure to plead 'guilty and keep silent. There 'were assertions that five of the wiretappers had been paid for their guilty pleas and that otherdmoves had been made to prevent further dis- closures. Both steps would be Federal crimes. The White House difficulties were heightened also by the revelations by L. Patrick Gray 3d during hearings on his nom- ination to be -director of the Federal Bureau of Investigation -a nomination Mr. Nixon was finally forced to withdraw. Ramifications, Mr. Gray provided evidence that John W. Dean 3d, counsel 'to the President; had kept close track of virtually every impor- tant step in the extensive F.B.I. investigation of the Watergate wire tapping. Mr. Gray said that Mr. Dean had "probably lied" when he told agents he was unaware of whether one conspirator, 'E. Howard Hunt Jr., had a White House office. Mr. Dean had in fact searched Hunt's of- It was learned from trial tes-. timony that Mr. Dean, later assigned by the President to conduct a White House investi-' gation of the case, had person. ally recommended Liddy to the re-election committee. Also, McCord told the Senate Watergate committee in secret session that he had been told by Liddy that Mr. Dean was' one of the men who took part in a February, 1972, meeting at which bugging operations had been discussed in detail. Others said to have been Mr. Mitchel land Mr. Magruder. present at the meeting were Mr. Macgruder was the rank- ing re-election committee offi- cial to testify at the trial of the seven men. He made it clear that he and others at the committee had organized and assigned Liddy to lead a political intelligence operation to deal with the pro-' tection of prominent Republi- can campaigners and conven-. tion'security problems. It was recently reported that Mr. Haldeman, at a private meeting with Republican Sen- ators and Representatives, had taken ultimate responsibility for the so-called intelligence gathering. He denied, however,, that the program had been improper. NEW YORK TIMES 18 April 1973 -Mr. Nixon Turns Around President Nixon's complete about-face on the Water- gate affair-from' a stance of belligerant resistance to the promise of full White House cooperation with both a Federal grand jury and the select Senate committee- is as welcome as it is belated. Obviously stung by the mounting waves of criticism and by the dire warnings of some of his strongest sup- porters that continued intransigence could lead to polit- ical disaster, the President has now, in' the late President Johnson's phrase, "bitten the bullet." He now states, quite properly, that no executive branch employe should claim immunity from prosecution and that all White House staff members will appear voluntarily before Senator Sam Ervin's committee to testify under oath and provide complete answers to "all proper questions." These pledges represent a 180-degree turn from the all-pervasive doctrine of Executive privilege that Mr. Nixon had previously embraced and that -Attorney Gen- eral Richard Kleindienst had restated so emphatically before two Senate subcommittees only last week. There have clearly been some sensible second thoughts about the Attorney General's bizarre interpretation that any cooperation in the Watergate investigation by any pres- ent or past members of the White House staff would do violence to the constitutional separation of powers. In-his brief press conference yesterday announcing the switch, Mr. Nixon spoke of "major developments" that had come about as the result of a new White House inquiry. Whatever the weight of the various factors involved, the important thing is that the President has moved away from an indefensible position to one of full cooperation. Now the grand jury and Senator Ervin's. committee will doubtless proceed without interference to clear up this sordid affair. Approved For Release 2001/08/0: CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 WASHINGTON POST 19 April 1973 e Attorney General would have no comment on the story. According to The Post's sources, Magruder provided the prosecutors with a first=hand account of a February, 1972, meeting in Attorney General Mitchell's office to dis- cuss and approve the illegal electronic eavesdropping oper- 11 By Bob Woodward and Carl Bernstein Weahtnaton Post Staff Writers Former Attorney General John N. Mitchell and White House counsel John W. Dean III approved and helped plan the Watergate bugging operation, according to President Nixon's former special assistant, Jeb Stuart Magruder. Mitchell and Dean later arranged to buy the silence of the seven convicted Watergate conspirators, Magruder has also said. Magruder, the deputy' campaign manager for the Presi- dent, made these statements to federal prosecutors Satur- according to three sources in the White House and day , the Committee for the Re-election of the President: The sources said that Magruder Is scheduled to testify before the Watergate grand jury today and is expected to repeat the statements under oath. One of the, sources went so far as to say that Magruder's . statements and other information developed by the prose- cutors-especially regarding the payments of cash to the conspirators to remain silent-are expected to result in the criminal Indictment of both Mitchell and Dean. Dean's resignation as counsel to the President is con- sidered imminent, according to sources in the White House. Two sources In the executive branch said yesterday that White House chief of staff H. R. (Bob) Haldeman also may resign as a result of recent Watergate dis- closures. There Is no known evidence to link Haldeman to criminal involvement in the bugging, the sources said. Magruder, who served at the White House as a deputy to Haldeman and later as Mitchell's principal assistant at the President's re-election committee, "chose to talk be- cause he felt the walls were coming in on him," one source said yesterday. Magruder will not be granted immunity from prose- cution, the sources said yesterday, but he hopes to receive some sort of favorable treatment. President Nixon was brefed on the Justice Depart- ment's recent findings Su iday, a day after Magruder spoke to the prosecutors. On Tuesday, Mr. Nixon, in his statement announcing "major developments" in the Water- gate case, said: "I have expressed to the appropriate au- thorities my view that no individual holding, in the past or present, a position of major importance in the admin- istration should be given immunity from prosecution." ? The details of Magruder's visit to the prosecutors be- came known less than 24 hours after President Nixon 'made his remarks. The President said he personally "began intensive new inquiries into this whole matter" on March 21, partly as a result of "serious charges" that had come to his attention. After 10 Months of White House denials of Involve- ment of presidential aides in the Watergate bugging and other political espionage and sabotage, the President said 'Tuesday he will suspend "any person in the executive branch who might be indicted by the grand jury." Magruder could not be reached for comment yester- day. His attorney, James J. Bierbower, would not comment last night on the contents of The Washington Post story. "I will confirm that he will testify before the grand jury when he Is called," Bierbower said. Informed of the contents of the story last night, Gerald Warren, deputy White Hoi,se press secretary, issued the following statement: "The White House is not prepared to react to a story based on sources. At a (future) time when the rights of individuals would not be jeopardized by a comment, an appropriate comment will be made." Earlier yesterday, Ronald L. Ziegler, White House press secretary, told reporters, "I'm not going to answer any questions on the subject (Watergate) no matter how they are phrased." A spokesman for Mitchell, who has previously denied advance knowledge of the bugging, said the former ation at the Watergate. At the time, Mitchell was the nation's chief law enforcement officer. Those who. attended the meeting were Mitchell,-, Dean, Magruder and convicted 'Wa- tergate.conspirator G. Gordon Liddy, a c c o r di n.g to the sources' account of Magrud er's statements. Convicted Watergate con- spirator James W. McCord Jr. testified before the grand jury and Senate Watergate com- mittee that he was told by Liddy that there was such a meeting in February at which the: bugging was planned and discussed. McCord's testimony was based on hearsay, but Madru- der's statements to, the pro- secutors provide evidence that can be used to obtain convic- tions, the sources said. The prosecutors also have re- ceived statements from other persons who can. testify, that Mitchell and Dean were in- volved in the arrangements to pay the seven Watergate con- spirators 'for their silence,' the sources said. Dean has acknowledged to others that he was involved in arranging the payments, one of the sources said,' but he has maintained that he was acting on orders. Frederick C: LaRue, a for- mer White House aide and one of Mitchell's most intimate as- sistants for years, was also-In- volved in the payments-re- portedly totaling 7vell over $100,000-the sources said. LaRue, w h o investigators have said helped direct a "housecleaning" at the re- election committee in which documents were destroyed af- ter the Watergate buggging, was subpoenaed by the grand fury yesterday, the Associated Press reported. The Post reported earlier this month that following the Watergate bugging, LaRue received $70,000 in Nixon cam- paign funds from the same account that financed the Il- legal electronic eavesdrop ping. Federal Investigators are now attempting to learn if that money was used to pay the Watergate conspira- tors for their silence. Meanwhile. The New York Times reported in its editions today that Attorney General Richard Kleindienst has dis- gtialified himself from further participation in the Watergate inquiry because the investiga- tion is focused on some of his past associates. Jack Hushen, a Justice Department spokesman, said "no comment" when asked about the .report last night. Hush+a added: "If it happened, it is a common, everyday oc- currence around the Justice De- partment" in cases involving potential conflicts of interest. The Times quoted Mitchell as saying that.,Kleindienst's with- drawal is an "entirely appro-, priate and correct decision for Dick to have taken." In addition, The Times said that Dean Is reported by asso- ciates to be ready to Implicate others in the Watergate af- fair if he is indicted. Magruder, 38, was chosen by the White House to coordinate President Nixon's 1972 inaugu- ration. He has been a target of the federal grand jury investi- gation since it reopened its in- quiry last month. He testified on Jan, 23 at the Watergate trial that he had no knowledge of the Watergate bugging, but said that he help- ed establish what was supposed to, be a "legal" and "ethical" intelligence -gathering - opera- tion. ' Magruder testified that he authorized'the payment of at least $235,000 to Watergate con- spirator Liddy to run the operation. Liddy,'who Is serving a jail sentence of at least six years and eight months for his con- viction, has repeatedly refused to cooperate with the federal investigation. Government investigators considered Liddy's silence a, roadblock to the new effort to! answer the many questions that remained after the Watergate trial. Mitchell, the pipe - smoking former attorney general, was a senior partner in a prestig- ious New York law firm that Mr..Nixon joined after his de- feat in the 1962 California gubernatorial campaign. The two men soon became close friends, and Mitchell was said to be Mr. Nixon's most trusted adviser. Mitchell was Mr. Nixon's campaign manager in 1968 and assumed the post of attorney general in the first Nixon ad- ministration. Mitchell resigned as attorn- ey general on March 1, 1972, to assume command of the Nixon re-election effort. The director of the successful 1968 ,campaign, Mitchell was then c o n s i d e r e d the President's Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 NEW YORK TIMES'' 19 April 1973 ,Text of Ervin Panel Gudel1nes chief political adviser. Mitchell's reign as head of the Nixon re-election cam- paign lasted exact 1 y four months and one day. He re- signed from the post last July 1-two weeks after the Water- gate break-in - citing a de- sire to spend more time with: his wife, Martha. Mitchell de- nied any link between his res.. ignation and' the Watergate; affair. ' A week before the resigna- tion, Mrs. Mitchell had issued a public ultimatum to her husband, to choose between "politics and me." "I'm not going to stand for all those dirty things that go on," Mrs. Mitchell said. Last Sept. 29, The Wash- ington Post reported that Mitchell-while Attorney Gen= eral-controlled a secret cash M fund that, was used to finance, political sabotage against the' Democrats. Reached by tele phone at his home in New 'York at the time, the former- (Attorney General called the story "ail that crap." A month later, however, 'Clark MacGregor, who . sub- ,ceeded Mitchell as Mr. Nix- ;on's campaign director, ac- knowledged that a cash fund existed, although he said it was not used for illegal or improper activities.. MacGreg. or named Mitchell as one of the officials who had access to the fund. ' Increasingly in recent weeks, Mrs. Mitchell has complained bitterly that her husband was being made a scapegoat in the Watergate affair. In an interview with The New York Times published Tuesday, she repeated her con- viction that her husband is innocent of any wrongdoing in the Watergate affair. She said she Insisted he leave Washington because of "the dirty things going on there" and that now "they're all try.. ing to pin this on him." Asked by the Times' report- er, "Did you get him out in time?" Mrs. Mitchell said, "I 'don't know. I really don't know." Asked If the President's friendship with the former at- torney general could "save him," she said, "That's a good question, Isn't it? That's what) I keep asking myself. The White House has said, that Mitchell met there Sun-, day with presidential assistant John Ehrlichman, but Mrs. Mitchell has continued to in- sist that her husband saw the President. The purpose of the White House visit has not been' disclosed by either Mitchell or the White House. Dean, 34, worked for the House Judiciary Committee and for two years as associate director of the National Com- mission on Reform of Criminal Law. Shortly after I'Ir. Nixon's first inauguration in January, 1969, he was named an as- the public and the news me- 'dia. 'This guideline shall not rec i and th speclat to The t:ew York T7mea the witness from further at- the committee is to be able WASHINGTON,. April 18-- tendance on 'the committee to ascertain the complete Following is the text of guide-' as soon' as circumstances truth in-respect to the mat-' lines. issued today by the Sen- allow, subject, however, to ters it is authorized to inves-' .ate Watergate committee the power of the committee tigate by S. Res. 60. dealing with witnesses who .. to recall him for further tes- Testify in Open Hearings ? appear before the panel: .;. timony in the event the com- T this end, the committee In investigating, the mat- mittee deems such action o advisable. will invite such White House ters mentioned in S. Res. 60, ? , To afford the witness a aides as it has reason to be- the Senate Select. Committee, fair opportunity to present. have have knowledge of in- on Presidential Campaign Ac- his testimony, the committee formation relevant to the ,. tivities will observe its stand ? will permit the. witness to matters it is authorized to make an opening statement investigate~to appear before ing rules, its procedures for staff not 'exceeding 20 minutes, the committee and give testi - interviews procedures for staff nterviews of prospective wit- which shall not be inter- mony on oath or af nesses, and these guidelines: rupted by questioning and a in open hearings respecting g ing statement summariz- such mhisers. 1. The committee will re- clos . In n this connection, the ceive oral and documentary ing his te estimony, nwhich ot exceed- - committee will extend ? to, evidence relevant. to the mat g fi such aides the considerations ters S. Res. 60 authorizes' it not be interrupted by ques- set forth in detail in Guide- to investigate and 'matters tioning: Provided, however, line No. 4 and the right to bearing on the credibility of questions suggested by the' counsel set forth in detail in the witnesses who testify be-' closing statement may be Guidelines Nos. 5 and 6. fore it. propounded after such state- In addition to these con- 2. All witnesses shall tes- ''ment is made. siderations and ' rights, the tify before the committee on ' Right to Counsel committee will permit the' oath or affirmation in hear- White House to have its own ,..,,.. ...w:-L t 5. The committeD rrsnnrfc c uunset e right of a present when any ogn zes prospective witness who is White House aide appears be-. the committee in advance of less, and permit such counsel of the committee .to take the a public hearing as well as to invoke any claim that a testim f ony o a particular wit the right of a witness who privilege available to the' ness on oath or affirmation President forbids a White t, in an executive meeting if , appears beforoe the commit-. House aide to give the testi- tee to be accom anied b a p y the committee would other- mony sought by the commit- wyer of his own choosing tee, and the committee shall wise be unable- to ascertain la t avise him concerning his whether the witness ' knows ' constitutional and legal rights thereupon rule on validity of anything relevant to the mat- such claim or its application as a witness. ; to the particular testimony ters the committee is author- 6. If the s lawyer who ac- e t.ized to investigate. ' companies a witness before sought in the manner and with the effect set forth in TV Coverage Allowed the committee advises the Guideline No. 6 in respect to 3. All still and motion Pic. witness to claim a privilege a claim of privilege invoked t against giving any testimony ' by a ure photography will be sought by the committee, the The witness committee is will not completed before a witness committee shall have the dis- ' actually testifies, and no such rrPtinnarv nnwpr to narmif subpoena a White House aide a f unless such aide fails """yuig. lei- views on the matter for the to make timely response to evision coverage of a witness information of the committee, and his testimony shall be and the committee shall a ninvitation to appear. 8 however, ma. under th l T t r ereupon ru e on the validity quiire the provisions io the standing he sergan at-ar ms of, rules of the committee. g of the claim or its application the Senate, or any of his as- le In taking the testimony to the particular circum- sistants or deputies, or anyy Y stances involved and require available law-enforcement o. of a witness, the committee the witness to give the testi- ficer to eject from a meeting will endeavor to do two mony sought in the event its of the committee any person, things: First, to. minimize in- ruling on the, claim is adverse who willfuly disrupts the convenience to the witness to the witness, meeting or willfuly impedes and disruption of his affairs; Neither the witness nor the committee in the per- and, second, to afford the any other officer or person formance of its functions tm- witness a fair opportunity to shall be permitted to claim der S. Res. 60. give him testimony without a privilege against the wit- 9. Whenever the committee undue interruption. ness testifying prior to the takes testimony through the To achieve the first of appearance of the witness be- agency of less than the ma- these objectives, the commit- fore ' the committee, and the jority of the members of the tee will honor the request of , committee shall not rule in committee as authorized by the witness to the extent respect to the claim until the its standing rules, the mem- feasible for advance notice question by which the testi- ber or members of the com- of the time and place ap- mony is sought is put to the mittee taking the testimony' pointed for taking,his testi- witness. pow- mony, complete the taking 7.., The committee believes shall vested thh the uow- of his testimony with ac that it may be necessary for err nes set t and foshall be rth in dee guide-eemed much dispatch as circum- it to obtain the testimonof act as the committee in exer- stances permit, and release ? some White House aides if cising such powers. sociate deputy attorney gen- eral in the Justice Department headed by Mitchell. The next year,' Mr.* Nixon brought Dean to the White House, installing him as counsel to the President. Last' Aug. 29 the President announced that, based or an investigation by Dean, "no one in the" White House staff, no one in this administration, presently employed, was in, volved in this very bizarre in-' ci e t 11 Ing months by White House spokesmen when asked wheth- er presidential assistants' were, st f on the Watergate case to Dean, and in response to ' question- ing, agreed that the presi- dential' counsel "probably" lied when he told FBI investi a- g involved in the Watergate of-+ (tors that he would "have to fair, check" on whether Hunt had Dean's name emerged again a White House office. last March, during Senate con- On March 26, it was re- firmation hearings on the ported that McCord-quoting President's nomination of L. Liddy-had named Dean and Patrick Gray III to be per- Magruder as having advance manent director of the FBI. 'knowledge of the bugging, The CaRli 910>01?f~?Ot;sl~ OW4D?D~ot'!se denied the sub- ApproVed.ForRelease 2001/08/08 . The Dean investigation was ]turned over secret FBI files Approved For Release 2001/08/07 : CIA-RDP77-00432R000.100140001-1 4IASHINGTON POST 19 April 1973 stance of the allegation and said the President had "ab;o- 'lute, total confidence" in Dean. Late yesterday afternoon .President Nixon went to his .mountain retreat, Camp Da- vid, accompanied by Halde- man and Ehrlichman. The White House said the Presi dent was expected to return to Washington this morning. NEW YORK TIMES 10 April 1973 C.I.A. SAYS IT ERRED ON FORD FUND-ROLE The Central' Intelligence. Agency says it was wrong when it suggested that a rep- resentative of the Ford Foun-' dation had, initiated the t suggestion that the New York Police. Department go to the intelligence agency for training. The C.I.A. admitted the mis- take in a , letter from the agency's legislative counsel, John M. Maury, .to Representa- tivo Edward.I. Koch, Manhat- tan Democrat. Mr. Maury said the agency's assertion that the Ford.Foundation. had been re- sponsible. had been based on a misunderstood conversation be- tween a, C.I.A. representative and an' official : of the Police Department.,: The President of the Ford Foundation, McGeorge Bundy, issued , it statement ? several weeks ago denying that the foundation had played it role in the 'department's decision to Task the C.I.A. for training assistance. In. an earlier response to a previous inquiry from Mr. Koch, the C.I.A. conceded that in the,; last two years it provided' ,training to about a dozen po- lice departments, including New York's, but it said that ex- ,cept in unusual situations it was discontinuing such training. Former W,sehinston Post Staff Writers Attorney General1 facing stiff resistance from :John N. Mitchell made an ef- fort earlier this month to per- suade Democratic officials to drop their lawsuit over the Watergate break-in of party headquarters. Democratic National Chair- man Robert S. Strauss yester- day confirmed Mitchell's entry into the negotiations which have been aimed at an out-of- court settlement of the Demo- crats' $6.4 million complaint against the Committee to Re- Elect the President. As former head of the committee, Mit- chell is listed as one of the de- Ifendants in the suit for dam- ages. "We are not in accord,"I Strauss said yesterday, "but we have talked both in person and on the telephone within the last couple of weeks." The Democratic chairman, however, said he had not had any conversations with Mitch. ell during the past week. Mitchell, who was at the White House last weekend while a campaign deputy was report-I edly incriminating him in inter- views with federal prosecu. tors, could not be reached for comment. The Republicans have re- portedly offered $525,000 for settlement of the suit, includ- ing $25,000 for former Demo- cratic National Committee of- ficial Spencer Oliver, whose telephone was tapped. Strauss confirmed this ' as a "rather precise, but not exactly" cor- rect description of one of the proposals that have been made. The )residential re-election committee's attempts to se-~ cure out-of-court settlements' of civil lawsuits touching on the Watergate break-in and its possible financing appeared to be crumbling in any event. In a second suit, officials of Common Cause, which is de- manding disclosure of the Nixon campaign's contrib- utions and expenditures last spring, said they intend to press their case despite an ef- fort by the President'''s 1972 fi. nance chairman, Maurice Stans, to seeui-e settlement. Common Cause Chairman John . Gardner said after a meeting with Stans yester-, day afternoon that Stans in-' sisted"on keeping secret the; names of big contributors who: wish to remain anonymous. Democratic . Chairman ,Strauss. meanwhile, has been state Democratic Party chair-, men to an out-of-court settle- ment of that lawsuit. He reit- erated yesterday during an ap- pearance at the National Press Club that, he would not want to "impair in any way" a full and complete, disclosure of the Watergate scandal.' Oliver, Who was .fired by Strauss last week as executive director of the Democratic State Chairmen's Association, is, known to be opposed. to a negotiated settlement. He had no immediate comment, but said through a spokesman that he would hold a press confer- ence at 2 p.m. today. Strauss told newsmen at the Press Club, however, that Oli- ver's dismissal "had absolutely nothing to do with the Water- gate whatsoever." He said he simply "wanted to rebuild a staff of my own that I could work with and have confi- dence in." Massachusetts Democratic Chairman Charles Flaherty, one of those present at a meet 'ing last week when Strauss de- manded Oliver's dismissal, said he hfld no quarrel with Strauss' desire for a loyal staff. But he predicted that most state Democratic chair- men, having lost their fight to keep Oliver, would vigorously oppose any effort to drop the lawsuit. ','We have a responsibility to make sure that every last fact and figure involved in the Watergate case be paraded be- fore the American people," Flaherty said. "To cooperate in an attempt to negate that is, to me, beyond belief." Both Strauss and' former Democratic Party Chairman Lawrence F. O'Brien, who ini- tiated the lawsuit last .June,, were believed to he amenable to a settlement of the case, which alleges that O'Brien's civil rights, and those of Dem- ocratic officials , generally, plete disclosure of the Nixon campaign's financing and, spending could resolve that . litigation without a full-dress., trial. Stans said it was Gardner's' attitude on that -score that made yesterday's meeting, with the Common Cause chair- man and his attorneys fruit- less.' The Finance Committee to Re-Elect the President, which Common Cause is suing, "is not seeking to preserve any- thing for itself," Stans insisted afterward. He said his committee was only trying to defend "the con- 'stitutional right" of Nixon .campaign contributors during .the period in question--from last March 10 to April 7, when, a new campaign financing dis- closure went into effect. Declaring that there was no federal law requiring dis- closure during that period, Stans said the finance com- mittee was prepared to take ,the issue to the U.S. Supreme. Court if necessary. "Those contributors have rights which we're not prepared to give; away," Stans said. Common Cause lawyer: Mitchell Rogovin derided that notion and charged that Scans and the finance commit-' tee had themselves aban doned it last fall "to sweep this (suit) under the rug" until after the presidential election. Rogovin'was alluding to an agreement reached shortly before the election under' which Common Cause agreed to postpone the suit in return for disclosure of Nixon cam-' paign contributors between Jan. 1, 1971, and March 10,: 1972, the date of 'the last re- port required under the old' Corrupt Practices Act. Ro-, govin said Common Cause stilt' has not been supplied with all, the details promised in that agreement. . Asked to, comment about were violated. % I President Nixon's announce "It really depends on the ment of "major developments"' confidence people have in the coming in the Watergate case, facts ultimately seeing the Stans said: "Well, they cer- light of day," DNC tainly don't involve Rne . . general I'm not involved in the Water- counsel Sheldon S. Cohen said gate.". He said Mr. Nixon was yesterday of the fears of some to be "commended" for his ef- Democrats that the Senate's forts which "certainly are -Watergate investigation will aimed at getting at the truth not be thorough enough. Co- and getting at the responsible people." 'hen, who has had talks with Just as he was preparing to Republican lawyers about a' drive off with his attorneys, possible settlement, said he is Stans was then asked whether proceeding for now on the as- he had approved the disburse- ment of $199,000 to Watergate will come to trial. conspirator G. Gordon Liddy Speaking for Common as alleged during Liddy's re-Cause, Gardner told reporters cent criminal trial by II ugh that nothing less than com- G Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 ~W. Sloan,' the Nixon cam- paign treasurer at the time of the Watergate break-in. "Tliat's an insulting ques- tion." Stans replied, "and the answer is no." WASHINGTON POST 20 April 1973 ows By Carl Bernstein and Bob Woodward ? Washinston Post Staff Writers Presidential counsel John W. Dean III declared yes- terday that he will not allow himself to become a scape- goat in the Watergate case. Immediately following his statement, there were re- liable reports that Dean is prepared to tell a federal grand jury all he knows about the Watergate bugging and that he will allege there ,was a coverup by White House officials, including H. R. .Haldeman, President Nixon's :principal assistant. headquarters-from the White House office of convicted Watergate conspirator E. How-i ard,Hunt Jr. and hid them. ? The head of the Justice! Department's criminal divi sion, Assistant Attorney Gen-' eral Henry E. Peterson, was placed in charge of the fed- eral Watergate investigation as Attorney General Richard G. Kleindienst disqualified himself from further involve- ment. Kliendienst said he withdrew because of "close personal and professional re- lationships" with new sus- pects in the case. ? Sen. Sam J. Ervin (D- N.C.), chairman of the, Sen- ate's Watergate investigating committee, said the panel's hearings may have to be de- layed if key witnesses are in- dicted in the near future. Dean's declaration that he will not become a scapegoat in the Watergate case came in a statement issued through his office, 'apparently without the knowledge or consent of supe- riors in the White House. Afterward, presidential press secretary Ronald L. 2te- gler delivered what was regarded by some White House reporters as a rebuke to Dean, ciates that he attended a Feb- stating that President Nixon is ruary, 1972, meeting in Mitch- searching for the truth in the ell's office at which bugging Watergate case, not scape- was discussed, but-apparently goats. like Mitchell, - has contended At a news conference, Zie- ihat he rejected plans to place gler for the first time made no than 12 hours after The Wash- `- the contrary, appeared to sa in gton Post quoted sources )electronic surveillance. Y A Dean associate, who made that the, presidential counsel as saying that former presi- it clear he was seeking to have was no longer engaged in im- dent.ial aide Jeb Stuart Ma- 1 the Presidential counsel's ver- portant work at the White grudcr had implicated both Sion of events made public; told House Washington Post Staff Dean and former Attorney g the Post yesterday that Dean Writer Carroll Kilpatrick re- will implicate people "above ported. the bugging of Democratic and below" himself when he Pressed as to whether Dean Party headquarters and in tells the grand jury what he was carrying on his regular payoffs buy the oof knows about the bugging and a duties, Ziegler said that "he's Mi 1ll Watergate called defendants. the subsequent eoverup. in his office .... attending to report "nononseensense.." Two associates said that business, of some sort." report " The New York Times re- Dean intends to s Wear under The associates and two other ported in its editions today, oath that White Douse chief sources insisted that Dean is however, that former Attor-' of staff Haldeman and other being made a sacrificial lamb ney General Mitchell has high White House officials ac- and contended that President told friends he was aware of Lively participated ina coverup Nixon began his- personal in- plans to bug the Democratic to hide the involvement of presi- vestigation of the Watergate opposition, and that he parti- dential aides in the bugging. case only after Dean came to cipated in three meetings at Informed of the comments him last month and said there which these proposals were by Dean's associates, Gerald had been a cover-up. discussed. But Mitchell "in-, Warren, -deputy White House In his statement telephoned sists that he rejected the; press secretary, last night is- to newspapers at 11:45 a.m. scheme on each occasion," the sued the following statement: yesterday, Dean said: Times said it had been told. "Mr. Haldeman denies the To date I have refrained Previously the former attor- allegation regarding him as from making any public com- ney general has maintained stated in the story as read to ment whatsoever about the that he was totally ignorant the press office." Vatergate case. I shall continue of any plans to conduct illegal Warren said the White House that policy in the future be electronic surveillance against cause I believe the case will press office also contacted l be fully and justly handled by week said he could not recol- lect attending a February, 1972, meeting in his office at which Magruder has told fed- eral prosecutors the bugging me, know the true facts, nor understand our system of `justice:" I One close associate of Dean said yesterday that Dean is prepared to tell a federal grand jury that whatever role he might have played in the Watergate ease came as a re- sult of orders from superiors. in the White House. The asso- ciate insisted that, despite al- legations to the contrary, Dean had no advance knowledge of. the Watergate bugging. "The truth of the matter is fairly long and broad," this associate said, "and it goes up and down, higher and lower. You just can't make a case that ... this was John Mitchell and John Dean"-an apparent reference to statements. by Jeb Magruder implicating the two. "John welcomes the oppor- tunity to tell his side of the story to the grand jury," the associate continued, adding: "He's not, going to go down in flames for the activities of others." According to two associates of Dean, the presidential coun- sel intends to swear tinder oath that his reported "investi-I gation" of the bugging fort President Nixon was designed by superiors to hide the in- volvement of presidential aides in the Watergate bugging. Citing Dean's inquiry, the President said on Aug. 29 that "I can say categorically that 'his investigation indicates that no one in the White House staff, no one in this adminis- tration, presently employed, was involved in this very bi- zarre incident. ' .." One associate of Dean yes- terday said that the presi- dential counsel himself never personally discussed the in- vestigation with Mr. Nixon before Aug. 29 and that "the so-called report of the investi- gating was more or less whole- cloth, a concept or a theory that was passed on to the President." The same associate said that in mid-March, Dean went Ito President Nixon, told him all he knew about the Water- gate bugging "and said, in ef- fect, 'there has been a cover- up and it's worse than you think it is, Mr. President."' At that point, the associate con- tended, Mr. Nixon decided to undertake his own investiga- tion of the bugging, leading to his announcement this week that there had been "major developments" in the Water- gate case and that "real pro- gress has been made in find- ing the truth." An independent source with close ties to the White House- but not to Dean-has given The Post a similar account, wn a o t t grand jury today and that. fed- I I a e acs are no n According to one of Dean's Watergate affair: until each person has had an oral prosecutors turned down ? Washington associates, the current White a request by the former at A attorney) opportunity to testify under House strategy for dealing said that, a day ay after the oath in his behalf.. Finally, torncy general to have his ap- ( with the Watergate problem Watergate break-in, an un?? some may hope or think that I pearance delayed. is "to cut their losses and Presidential Counsel Dean named client took eight car-. 1 will become a scapegoat in the shore up by implicating John has also a knowlednse to assn- tons of materials-including; f11'atergate case. Anyone who pls t4 pug the ppe i t Mitchell and John Dean" while Approve or ease 2v0'~$`$ t G~i- -'OP o64~3 b~1~6o140001-1 Dean last night about the com- the grand jury and the Ervin nients of his associates. "i1?Ir. select committee. It is my Dean said to the press office l hope, however, that those truly that at no time did he ever tell' 'interested in seeing that the any associate any such thing Watergate case is completely about Mr. Haldeman," Warren aired and that justice is done [ was discussed. said. It was learned that Mitchell also these add[-I , will be conclusions as careful to in the drawing any There were guilt or has been subpoenaed to air tional developments yesterday [involvement of any person un- pear before the Watergate .l'ted t the escalating h f t k d ?1 it Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 other high officials in tl,e White House and former pre~i-? dential aides remain untainted. "It's wishful thinking on their part if they think they can get away with that," the asso- ciate said. Another associate described Dean's statement that he will not be a scapegoat as "just the first salvo from John." In its editions yesterday, The Washington Post report- ed that former presidential assistant Magruder had pro., vided federal prosecutors with a first-hand account of a Feb-~ ruary, 1972, meeting in then-I Attorney General Mitchell's office to discuss and approve the bugging operation at the Watergate. Those who attend. ed the meeting were Mitchell, Dean, Magruder and convict. Ad Watergate conspirator G. Gordon Liddy, according to several sources' accounts of Magruder's statements to the prosecutors. Yesterday, one associate of Dean said the presidential counsel had confirmed that he attended such a meeting at which the bugging was dis- cussed, but contended that Dean argued against the it- leral eavesdropping operation and refused to have anything to do with it. Afterwards, the associate said, Dean was. ordered by su- periors in the White House to handle arrangements for pay- ing the seven indicted Water- gate conspirators to remain silent. R1ag.uder, according to White House sources, has said that both Dean and Mitchel made the arrangements to buy, the conspirators' silence is ,addition to approving plans for ,the bugging. Mitchell, asked in New York about yesterday's story in The Post, told' the Associated Press: "This gets a little sillier as it goes along, doesn't it? I've had a good night's sleep and haven't heard any of this non- sense." Magruder, the deputy direcc- tor of the Nixon re-election campaign, was scheduled to testify yesterday before the federal grand jury investigat.- ing the case, but reporters at the U.S. Courthouse did not see him there. Federal prose- cutors last night refused to discuss whether Magruder had appeared before the grand jury, or when he is scheduled to testify. It is known that, in addition to the bugging itself, the grand jury is investigating al- legatlons of obstruction of justice and perjury by pres- ent and former presidential aides. Meanwhile, Washington at- torney Peter H. Wolf added new mystery to the Watergate investigation yesterday by say. ing that a client of his had taken eight cartons of mater. ials from convicted Watergate conspirator Hunt's office the day after the Watergate break-1 in last June and had held on to them until just before thel election. Wolf said, that included in, the boxes were the "plans to 'bug' the Watergate" as well as contributors' lists that were later "turned over by the Com- mittee (for the Re-election of ,the President) in the litigation instituted by Common Cause." In his motion filed in U.S. District Court, Wolf said he was attempting to determine whether he has a lawyer-client' relationship or whether he must testify before the grand jury. Wolf did not identify his client, other than to say he "worked for the Committee for Re-election of the Presi- dent." The lawyer also did not dis- close who had given his client the orders to pick up the ma- terials-and hide them. Wolf said the client had come to him to ask "whether he was in danger 'of violating 'any law if he'had hidden in his possession approximately eight cardboard cartons con- taining, among other things, the contents of Hunt's desk in the White House before the FBI got there, including plans to 'hug' the Watergate." The attorney said he hall urged his client to "turn over these documents to people conducting investigations of. the Watergate matter." Wolf said that his client came to him late last summer and "very shortly after this I telephoned principal assistant U.S. Attorney Earl J. Silbert and received from him an opinion that he did not think my client was commit- ting any crime." Silbert responded yesterday that Wolf's motion was "pre- posterous." Silbert said Wolf's "implication that evidence of this nature would be ignored (by me) is incredible." Silbert said the conversa- tion last summer involved the propriety of Wolf's client turn- ing over materials relevant to the Common Cause suit and that no mention was made of where the materials came from. "It was only a few days ago that Dlr. Wolf disclosed to us that his anonymous client had obtained t h e s e, documents from llr. Hunt's office," Sil- bert said. I Wolf said his client "had' been asked" by an unnamed' party to pick up the cartons from Hunt's office in the Ex- ecutive Office Building and ,,that a pass would be waiting for him at the guard entrance, that no questions would be' asked when the cartons were; removed from the building,, and none were." Hunt's attorney, William O.! Bittman, said yesterday that, Hunt ,to the best of my knowledge, didn't have any documents in his office except' in the. safe." He said he was unaware of Wolf's allegations. In another. development, 'an aide to Sen. Lowell P. I Weicker, Jr., (R-Conn.) said yesterday that a locked filing cabinet in his (the aide's) of- fice containing records of In- vestigations into the Water gate case and related matters Washington Post 11 April 1973 Lost Put' at, 86o2 Efli'loon Associated Press Sen. William Proxmire (D- Wis.) said yesterday the U.S. intelligence community em- ploys about 148,000 persons and spends about $6.2 billion each year. Renewing his call for dras- tic cuts In the cost of Ameri. can spying and covert activi- ties overseas, Proxmire urged James Schlesinger, new Cen- Atral Intelligence Agency Dl- Irector, to make public the gov- ernment's entire intelligence budget, which has always been secret. Proxmire said he Is not op- posed to a first-rate American intelligence operation but does believe that the Intel ligenee establishment has swollen out of proportion tol national defense needs and that congressional controls and restraints on it have eroded. . He said his cost and man. Power estimates are not based on classified or official sources and noted that they, apparently was opened during the night. William Wickens, a counsel. to Weicker, said it was impos sible to determine immedi- ately whether anything was missing from the cabinet but; that it was possible 'some of the records might have been. Photographed or copied. A Xe-i rox machine is located about 51 feet from the cabinet, Wickens! -said. depict the CIA as smaller iii' both personnel 'and budget than at least three other U.S. intelligence groups. Proxmire's estimates show the CIA with a work force of 15,000 and an annual budget of $750 million. These are his, other estimates: National Security Agency, 20,000 and $1 billion; Defense Intelligence Agency, 5,016 and $100 million; Army Intelli- gence, 38,500 and $775 million; Navy Intelligence, 10,000 and $775 million; Air Force Intelli- gence, 60,000 and $2.8 billion, and State Department Intelli- gence, 335 and $8 million. Proxmire said his estimates are "not without' error," but nevertheless are "in the ball- park." "These figures do not re- flect, however, the coordina- tion that is involved from one organization to another," Proxmire said. "The Air Force, for example, supplies the launch boosters and satel- lites for the highly successful reconnaissance program and this is one reason the budget. is so high." Proxmire has said . previ.' ously that secret missions by intelligence agencies overseas are needlessly Involving the United States In the political affairs of other countries at a period when the need for the missions has been greatly re- duced by modern techniques of electronic and aerial sur- veillance. WASHINGTON POST 20 April 1973 Correction In a story in ? yesterday's editions, The Washington Post erroneously said that John N. lMitchell, former chairman of the Committee for the Re-- ~election of the President, is a defendant in the $6.4 million Democratic lawsuit over the Watergate break-in of Demo- cratic Party headquarters. The defendants are .James W.llcCord Jr., and the six other men convicted of con- spiracy in the Watergate case; the Committee for the Re- election of the President; the. Fin. a nee. Committee to Re- elect the President and its chairman, Maurice H. Stans; McCord Associates, James Mc- Cord's firm; Jeb Stuart Ala- gruder, former deputy direc- tor of CRP; Herbert L. Por- ter -and Hugh W. Sloan Jr., CRP aides. Approved For Release 2001/08/07 : CIA-RDP77-00432R0001-00140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 WASHINGTON POST 12 April 1973 Bernstein and Bob Woodward Washington Post Staff Writers James W. McCord Jr. has testified before a federal grand jury that his principal superior in the Watergate conspiracy' told him that the transcripts of the wiretap- ped conversations of Democratic 'Party officials ' were hand-carried to former Attorney 'General John N. Mitchell, according to. reliable sources. The sources reported that McCord also testified that his superior in the conspiracy, former White House aide G. Gordon Liddy, told him that Mitchell had ordered a "list of priorities" in establishing elec- tronic eavesdropping opera- tions against the Democrats.' McCord, according to the sources, said the first priority was to bug the Democratic Na- ing a $200,000 cash contribu tion to the Nixon committee by Robert L. Vesco. Vesco is the central figure in a Securi- ties and Exchange Commis- sion suit alleging that inves-i tors were swindled out of $224 million. The grand . jury in New York reportedly is con- sidering possible. obstruction l of justice in Vesco's dealings 'with Nixon campaign officials. tional Committee headquar-I ? Philip S. Hughes, head of ters at the Watergate, then the Federal Elections Office the campaign headquarters of in the General Accounting Of- ,Sell: George McGovern and, fice, said that an investigation finally, rooms in the Fontaine- of the Nixon campaign's fi- bleau~ Hotel in Miami to be oce'upied by presidential can- I nances will he expanded to in- didates and party officials at ;ciude an apparent violation of -the Democratic National Con-j the law in the disbursement of vention. i at least $70,000 in cash to McCord, the former security coordinator. for the Commit- tee for the Re-election of the Frederick C. LaRue, one of Mitchell's closest aides. Relia- ble investigative sources have confirtmed the sources' ac- --""g"L" rut grog UIIU was count of his grand jury testi- not properly reported under mony. He declined to elab- 'the new campaign finance dis- orate, saying: "I don't like to :closure law. the -h-11 According to reliable ac- ?"r>r .,t,,,,,r it o n Mitchell, through a spokes """" ,u , Lut:,.v, u a 'iPpu' [- :man at the re-election commit-, ante-before the grand jury, he tee, denied that he ever re- ceived transcripts or logs of wiretapped conversations, and denied once more that he had prior knowledge of any plans for Illegal electronic eaves- dropping. In related developments yesterday: ? Three principal figures in an alleged campaign:of politi- cal espionage and sabotage conducted against the Demo- crats appeared before the same grand jury as McCord yesterday. They are former presidential appointments see-' retary Dwight L. Chapin, for- mer White House aide Gordon Strachan. and alleged political saboteur Donald II. Segretti. 111 ? Reliable investigative sources said that Mitchell and iformer commerce Secretary Maurice H. Stans, the chief Nixon campaign fund-raiser, appeared earlier this month before a federal grand jury in New York City investigat him final typed transcripts of wiretapped conversations on several occasions and said; "These are for. the (former) at- torney general.", On at least one occasion. McCord report- edly 'testified, Liddy specifi cally told him that he regu- larly "hand-carried" the tran- scripts to Mitchell, who was then President Nixon's cam- paign manager. On another occasion, Mc- Cord reportedly testified, he saw Liddy's secretary, Sally Harmony,.typing a final ver slon of the transcripts from' MrC ord's own preliminary' draft. One source familiar with the testimony said yesterday: "If those conversations were being retyped, it meant they had to he going somewhere; Liddy certainly didn't need to have them typed again for himself."} Miss Harmony. who testified before the Watergate grand year, has been contacted by the Senate select committee investigating the bugging of Democratic headquarters and other political espionage and sabotage, and is expected to be recalled before the grand jury as well. . ,McCord also reportedly told the grand jury that the Water, gate hugging team had plan- ned to install wiretapping and eavesdropping devices at Sen. McGovern's headquarters dur- ing the same weekend that he and four other conspirators were arrested at the Water- ate. The operation at the ontainebleu, he reportedly, testified, was still in the plan ning stages and Liddy told him.that it would be executed as soon as word came from Mitchell. McCord is also known to have told others that the bug- ging team had,planned to wire- tap the campaign headquar- ters ` of : Sen. Edmund S. Muskie (D-Maine) during the spring, but that the plans were; abandoned when' it was clear that Muskie was no longer the front-runner for the Demo- cratic presidential nomination. It could ? not be learned if ? Mc-. Cora who rented an office. next door to Muskie headquar- ters in Washington mentioned that matter to the grand jury.: Like his earlier testimony before the Senate's select in- vestigating committee, Mc- Cord's grand jury statements about the. alleged involvement in wiretapping activities of presidential aides and advisers was based on hearsay-prima- rily in the form' of what he says he was told by Liddy. Liddy has been sentenced to an additional prison term for contempt of court in refusing to answer the grand jury's questions, including those based on what he is saiti to have told McCord. 'The meaning of the appear- ance ance by former presidential appointments secretary ' Cha- pin, former White House aid Strachan and alleged agent provocateur Segretti before the Watergate grand jury yes- terday was not immediately clear, One federal source said their appearance is the first indica- tion that the grand jury inves- tigation may have moved be- vond illegal electronic surveil- lance to include a broad range of political espionage and sab- otage activities. Previously, the Justice Department has main- tained that there was nothing Illegal about the' operations Segretti and Chapin were al- legedly involved in. Some federal sources sug- gested yesterday that Chapin and Segretti were called be- fore the grand jury to estab- lish that they have no knowl- edge of illegal electronic sur- veillance. - tors took unusual steps to pre- vent news reporters from ob- serving who was to appear be-, fore the panel. The prepara-; tions included moving the; grand jury to a different room, accessible from two entrances,' one of which is reachable 'through a hack elevator. ' Assistant U.S, Attorney Earl J. Silbert, who heads the re- newed federal investigation into the Watergate bugging and related matters, said the new arrangements were order- ed because a circus atmos- ,phere had developed outside the other grand jury room, -where reporters have gathered in the last two weeks to watch persons entering and leaving. Despite the new arrange- ments, reporters were able to tdetermine that Chapin was) in the grand jury room for 'about 90 minutes, after which the scurried past reporters, smiling but refusing to answer any questions. Outside the courthouse, he ,entered a brown sports car and sped away. Segretti, who followed him into the closely guarded grand jury room, was there for about. 45 minutes before the grand jury quit for the day at about 5:45 p.m. Prosecu- 1tors refused to say whether Segretti would return for more questioning. It could not be determined how long Strachan, a former political aide to White House chief of staff H. R. Haldeman, was before the grand jury. . According to investigators, Chapin and Strachan both played a, role in hiring Segret- ti to engage in political dis- ruption and spying activities. Chapin, according to FBI reek ords made public, also made arrangements for Segretti to he paid by President Nixon's personal lawyer, Herbert W. -Kalmbach, and Strachan al- legedly put Watergate con- spirator Liddy in touch with Segretti to merge two nom- inally separate spying-and- sabotage operations: one run by the White House and the other by the Committee for the Re-election of the 'Presi- dent. Another witness to appear before the grand jury yester- day teas Robert Reisner, a for. mer aide to Jeh Stuart Magru. der, the deputy director of the Nixon re-election, campaign. Reisner, who has also been contacted by the Senate's in- vestigating committee, was presumably before the grand jury yesterday to be asked about McCord's hearsay alle~ gations that . Magruder was among high presidential asso- ciates who had advance knowl- edge of the Watergate hug- ging. During his appearance be- fore both the grand jury and the Senate committee, McCord reportedly testified that Liddy told him that the plans and budget for the Watergate.on- - - ~...... .... u ry meeting in-then-1 Approved For Release 2001/08/0 : t1A- f 7 V62f32F' 0MT001 0 { Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Attorney General Mitchell'sI office that was also attendedi -by presidential counsel Jehnj W. Dcan III and Magruder. Mitchell, Dean and Magruder have repeatedly denied any 'invol'vement in illegal wire- tapping operations. Although McCort] claims no first-hand knowledge of those persons' alleged involvement in such activities, he' report. edly has provided both the grand jury and Senate investi- gators with several important leads dealing with that aspect of his testimony. Reisner was expected to he asked by prose. cutors yesterday about some of the leads provided by Mc- Cord. Both Senate and Justice De- partment investigators have confirmed that Mitchell, Dean, Liddy and Magruder were all present during a February meeting in Mitchell's office but have thus far have unable to substantiate that the bug- ging was discussed, WASHINGTON POST 11 April 1973 1M iEteUU Aide $70,000 Of Bug Fund By Bob Woodward and Carl Bernstein Waahinaton Pont Staff Writers About $70,000 in cash from President Nixon's campaign i was transferred in apparent violation of the law last July to a principal assistant of ::or- mer Attorney General John N. Mitchell, according to reliable investigative sources. The $70,000-mostly in $100 bills-came from the same ac- count that financed the Water- ' gate bugging and went to for- mer White House aide Fred- crick C. LaRue, one of Mitch- ;ell's closest political aides, the sources said. The purpose of the traimmfer is not yet known, the sources said, but federal investigators are expected to try to deter- mine if the $70,000 was in any way used to pay the Watergate conspirators for their silence, LaRue received the $70.000 two weeks after the arrest of five men June 17 in the crats' Watergate headquarters and several days after Mich- ell resigned as the President's campaign manager, the sources said. The transfer was approved by former Commerce Secre- tary Maurice H. Stags, the fi- nance chairman of the Nixon campaign, according to sworn testimony given this month to federal investigators in Now York City. A spokesman for the Cam- mittee for the Re-election of the President, reached yester- DeVan L. Shumway, spokes- man for the Nixon re-election committee, said yesterday that Mitchell does not recall such a February meeting, and, that Mitchell first met Liddy on June 15, 1972, at least three months after - the alleged meeting.' In'seeking corroboration of McCorci's testimony, Senate. sources said yesterday that staff members of the select ,committee have talked to Vicki IChern, Reisner,s secretary at the Nixon committee, and that she provided an appointment book or calendar confirming a scheduled meeting of Mitch- ell, Dcan, Liddy and Magru- der in February. Miss Chern is also under stood to have provided the, committee staff with other in- formation. However, reliable Senate sources discounted pub- lished reports that the com- mittee:.has fours, ai witness who can confirm that the bug-, ging was discussed at the meeting. day afternoon, had no im- mediate comment on the re- port of $70,000 fund. Mitchell, Stans and LaRue could not be reached for comment. The testimony concerning the $70,000 transfer is the first indication that the President's re-election committee contin- ued to maintain a secret ac- count of some sort after the arrests in the Watergate. The General Accounting Of- fice was 'not told of the trans- fer, as required by the new Federal Election Campaign Act, which directs full public accounting of all campaign money after April 7, 1972. Philip S. Hughes, head of the Federal Elections Office in the GAO, responded yester- day ; to an inquiry about the $70,000 by saying: "It seems that the law is loud and clear that all money, in their hands. after April 7 had 'to be fully accounted for. If ti>is money went out in July -and I've never heard of it befdre-I don't think any rea- songble person could argue that, it was not a violation- even Stags hasn't argued, that:-" The $70,000 came from a Tart cash fund that was kept in Stans' office safe and was used to finance a broad cam- pai,,1n of political espionage and 'sabotage. That intelligence-gathering fund, which fluctuated in size between $350,000 and $700,000,' was, the source of at least $235,000 for convicted Water- gate conspirator G. Gordon Liddy, the former finance counsel to the Nixon commit. tee. P In January, the Nixon com- mittee pleaded no contest to eight separate violations of. the new campaign finance dis-' closure law stemming from) the;paYments to Liddy and was'fined $8,000. According to -two sources at thelNixon committee, the $70,- 000- was given to LaRue for noncampaign purposes that are apparently known only to Mitchell, LaRue and other top campaign officials. LaRue was one of two per- sons directed by former Attor-1 ner General Mitchell to keeps the.'public and federal investi- gatitirs from learning many de- tails about the Nixon commit- tee~ involvement in the Watergate bugging, according to llighly placed sources in the Nixon campaign., Meanwhile, federal inve,t H gators in Washington are known to be checking into testimony of convicted Water-1 gate conspirator James W. McCord Jr. that he received: $3,000 a month from the late' wife of coconspirator and for-, mer White House consultant ,E. Howard Hunt Jr. According to reliable sources, McCord received the money in cash-mostly $100 bills-in exchange for 'his si- lence about the Watergate op- ' eration. McCord, the former security coordinator of the Nixon com- mittee, reportedly testified be- fore a federal grand jury here that Dorothy I-Iunt told him ,last year that the $3,000 a month and $1,000 monthly pay. .ments to other conspirators came from the Nixon re-elec- lion committee under an ar- rangement worked out by Kenneth W. Parkinson, the committee's attorney. Parkinson has denied the charge and said it is "totally and completely false." According to sworn testi- mony given to federal investi- gators in New York City, La-' Rue received the money from Hugh W. Sloan Jr., the former. Nixon committee treasurer who resigned abdut the time of the July transfer. The testimony by campaign', committee officials was made to a federal grand jury in New York . City investigating a $200,000 cash contribution to t the Nixon committee by finan- cier Robert L. Vesco. Vesco is charged in a civil! suit filed by the Securities and Exchange Commission with misappropriating $224 million in mutual funds man- aged by IOS, Ltd., a financial complex based in Switzerland. According to other federal sources, the $200,000 Vesco contribution went into the ocash fund kept in Stags' safe. That fund has been a cen- tral focus of the Watergate in- vestigation and has the follow. ing history: In August, the GAO cited the Nixon committee for 11 apparent violations of the law for failing to report receipts and expenditures from the i fund, which the GAO at the t time said contained at least I$350.000. In ,May, after the new 1$350,000 was deposited in th !bank, apparently liquidatin the fund. determined that at least $12, 000 from the fund (part of th $235,000) was given to th liquidated on May 25. checks, including $89,000 i Mexican checks taken acros the border to conceal th ' utors, went into the cash fund. The checks were cashed by bank'account last April. 0 At least $30,000, whit Donald H. Segretti, an alleged against the Democratic presi dential candidates. Th money was paid to Segretti b Herbert W. Kalmbach, Presi- dent Nixon's personal attor- ney, at the direction of former presidential appointments sec- retary Dwight L. Chapin. O Disbursements from the fund were, according to fed- eral sources, controlled by Mitchell, Stags, Kalmbach, Jeb Stuart Magruder (the No. 2 of- ficial at the Nixon campaign) and White house chief of staff H. R. (Bob) Haldeman. The White House has denied that Haldeman controlled disburse. ments from the fund. Hughes, head of the federal elections-office, said yesterday that officials from the Nixon committee have declined to say how much money was in the fund. Reliable sources have said that the fund con- tained close to $1 million. LaRue, once the part owner of a gambling casino in Las Vegas, has been one 'of the most enigmatic figures of the Nixon administration's inner circle since the President took office. During the 1972 cam- paign, he was one of the most important presidential aides placed by the White House in the leadership of the Commit. tee for the Re-election of the President. A wealthy Jackson, Miss., oil man, LaRue of the ar- chitects of the "Southern' Strategy" of the 1968 Nixon) campaign, in which he worked as an assistant to campaign manager iitchell. During the first three years of the Nixon administration, he officially served as a coun- sel to the President, although his name was never listed In the White'House staff. directo- ries, and some lower-level "White House aides still say: "I never heard of him when he was over here." Those few persons familiar with his work as a presidential counsel say many of LaRue's 'Approved For Release 2001/08/07: CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 assignments involved political liaison with the Southern states and with Sen. James O. Eastland (D-Miss.), the Senate Judiciary Committee chair- man who has become a power- ful administration ally on Cap- itol HiL According to Nixon admints tration sources, LaRue was as. I signed by Mitchell and the White House to help establish the Committee for the Re-elec- tion of the President and, withi deputy campaign manager Jebl Stuart Magruder, later rant many of the day-to-day opera-, tions of the Nixon campaign. ' Both La Rue and Magruder played roles in the Nixon cam- paign's program of espionage and sabotage activities against the Democrats, . according to campaign and Investigative sources. At the committee, the two shared an office suite and, among campaign Insid- ers, became collectively. known as "MagRue." Magruder has denied alle- gations in hearsay testimony by Watergate conspirator Mc- Cord that he was one of sev- eral former presidential asso- ciates who had a d v a n c e knowledge of the Watergate bugging. McCord, the former security coordinator of the Nixon re-election committee, is known to have told investi- gators that he has no knowl- edge that LaRue was involved lin the bugging. According to Alfred C. Bald win III, the ex-FBI agent and WASHINGTON POST Mitchell security guard who monitored the wiretapped con- versations of Democrats at the Watergate, his hiring by .the 'Nixon committee was person. Ally approved by LaRue. Bald- win, in an interview with The Los Angeles Times, said he was supplied with a gun by LaRue, who told him not to worry about not having a li- cense. 11 At the time of the Water- gate arrests on June 17, Mitch: ell, Magruder, LaRue and Robert C. Mardian, former As- sistant Attorney General, were all together on the West Coast, according to investiga- tive and Nixon committee sources. Mitchell reportedly ordered Magruder to fly di- rectly back to Washington on Sunday, June 18, to investi- gate the situation. Then 'Mitchell returned to Washington with LaRue and Mardian on Monday or Tues- day, and designated them as coordinators of the Nixon committee's response to the bugging, including responsibil- ity for dealing with federal in- vestigators. Part of that response, ac- cording to Investigators, was a massive "housecleaning" or- dered by LaRue and Mardian, in which numerous records were destroyed. Mardian also sat in on almost all FBI inter- j'views with Nixon committee employees and, with LaRue, reportedly advised some per- sons to "stay away from cer? twin areas" in their discussions with investigators. the conspiracy. On one, or more occasions, .McCord reportedly testified, .11Irs. Hunt told him she flew to Miami to pay. those de tfendants while they were awaiting trial. In January,' -Frank A. Sturgis, one of the. Miami men, was quoted in The New York Times as say- ';ing the four were still being ',paid but would not say who was supplying the cash. McCord, according to the' ?.sources, testified that Mrs. 'Hunt had become increasingly `disturbed about her role in al- vlegedly paying off the defend- rants to keep silent, and dis- ,`cussed the matter with him on tseveral occasions. 'McCord reportedly told the grand jury that Mrs. Huntap ;geared certain that the money kwas coming from the re-elec- ition committee, either directly or indirectly through Parkin- ,:son. On several occasions, Mc- 'Cord is said to have told the ,grand jury, Mrs. Hunt told shim that the arrangements for the payoffs had been made through Parkinson. During the Watergate trial, Hunt and the four Miami men pleaded guilty to all the, charges against them. McCord and his principal superior in f the conspiracy, former White House aide G. Gordon Liddy, were convicted without taking the witness stand. Liddy has continued to remain silent, since his conviction and has received an additional prison sentence for contempt of court after refusing to answer a grand jury's questions. At the time the four Miami men pleaded guilty, sources close to those defendants re- ported that each had been receiving $1,000 a month since their arrest and that Hunt had promised them they would continue to receive the money if they followed his lead and pleaded guilty. Hunt, a for- mer White House consultant, told the men they would even- tually be granted executive clemency if they remained silent, according to the sources. The sources said they were aware of how the $1,000 a month was being distributed but refused to disclose the details. Parkinson, the principal at- torney for the Committee for the Re-election of the Presi- dent, is a partner in the Washington law firm of Jack- son, Laskey & Parkinson. Last October, Alfred C. Baldwin III, the ex-FBI agent and Nixon committee security guard who monitored the wiretapped conversations of Democrats in their headquar-, ters at the Watergate, told The Los Angeles Times that Park- inson inson had urged him to take the Fifth Amendment before the grand jury investigating the case. Justice Dcpartment. sources said at the time that! they could not substantiate the allegation by Baldwin, who cooperated with the prosecution and became a key government witness in the case. , Parkinson, 45, graduated inl* 1952 from the George Wash-i ington University Law School. 10 April 1973 MCord: `lush' Money Came From Hunt's Wife By Carl Bernstein and Bob Woodward wnshinaton Post 9tnff writers Watergate conspirator James W. McCord Jr. has tes- tified before a federal grand jury that Ire received $3,000 a month from the late wife of his coconspirator, E. Howard Hunt Jr., to remain silent about his role in the bugging .of Democratic headquarters, according to reliable sources. McCord, the former security coordinator of the Committee for the Re-election of the Pres- ident, reportedly testified that Dorothy L. Hunt told him the $3,000a month carne from the re-election committee under an arrangement worked out by Kenneth W. Parkinson, the committee's attorney. Parkinson called the charge "totally and completely false.'- Tlunt's attorney, William O. liittman, declined to cony ment, saying he had no in- formation to either confirm or deny the substance of AIc- Cord's allegations. McCord reportedly testi- fied that Mrs. Hunt, who was killed in an airplane crash in Chicago last December, told' him she usually received Nix on committee money from an intermediary for Parkinson and that she then distributed' the cash to the Watergate de- fendants. At the' time of her, death,' Mrs. Hunt was carrying $10,- 01)0 in $100 bills, which D'Ic- Cord reportedly testified was part of a payoff to her hus-, band for remaining silent. about the Watergate conspir-acy ATcCord said Mrs. Hunt was taking the money to Chi- cago to invest it in a motel, according to reliable sources. Hunt also has said the money was for investment purposes. According to sources famil- iar with McCord's grand jury testimony, he said he was told by Mrs. Hunt that- she was also paying four other defend- ants in the case-the Miami men arrested inside the 1\'atcrgate with McCord on June 17 - $1,000 per month each to remain silent about He has been active in Legal Aid and, Neighborhood Legal Services programs here. Meanwhile, L a w r e n c e Young, the California attorney who first disclosed the contact between alleged political sabo- teur Donald H.' Segretti and the White House, charged yes- terday that there is an at- tempt to "muzzle" him. Young said he had received a letter from Segretti's attor- (ncy warning that any commu-1 nications between Young and' Segretti are covered by a law- yer-client privilege of confi= rdentiality "and are not to be discussed by you under any. circumstances." Young denied a lawyer- client relationship with See retti and said he views the at- tempt to keep him quiet as an' indication that Segretti will refuse to cooperate .with the Senate select committee inves- tigation the Watergate bug-. ging and related allegations of, political espionage and sabo- tage. Young said the letter from ,Segretti's lawyer was dated April 4, two weeks after an in-; vestigator from the select' committee had asked Young for additional information about Scgretti. The letter, which Young said was signed by John P. Pollock, a Los Angeles attor- ney for Segretti, told Young that he was not to discuss any- thing regarding Segretti's "actions, persons with whom he' was associated, places where he traveled and all other aspects of his work." Last fall Young told The Washington Post in a series of ;Washington that Segretti had told him that Dwight L. Cha- pin, President Nixon's appoint- ments secretary, and Water. - gate bugging conspirator L. Howard Hunt Jr. were his con- tacts in spying and sabotage operation. .Young, Segretti and Chapin'. ,were all friends in the early 1960s when they attended the University of Southern Cali- fornia together. The letter directs Young not to repeat any of his earlier statements or make any addi- tional'disclosures. "I deny any lawyer-client relationship," Young said yes- terday in a telephone inter- view from Los Angeles. "I re- ceived no legal fees and asked Segretti three times if he wanted to retain me and he said 'no' each time." Young said the letter, com- ing more than five months af- ter his first public disclosures about Segretti's activities, is the first indication, that Se- gretti might claim that their conversations were protected by the lawyer-client privilege. A summary of FBI reports made public during acting FBI i director L. Patrick Gray's con- . Approved For Release 2001/08/07 : CIA-R4fj77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 firmation hearings before the Senate Judiciary Committee supports at least some o:' Young's most serious state- ments about Segretti. The FBI summary said that Herbert W. Kalmbach, the President's personal attorney, paid at least $30,000 to Se- gretti for undercover political activity and the payments were made at the direction of IChapin, who has since left the White House. In a related development 'yesterday, Mary Lou Burg, care Hla" 8 Qehttao ng Convicted Watergate con- spirator James W. McCord Jr. has testified under oath that his hiring as security coordi- nator for the Committee for the Re-election of the Presi- dent was apparently cleared through White House counsel John W. Dean III. ? The White House said last night that Dean has "no recol- ?lect.ion of ... being involved In the hiring of McCord." Dean, who recommended ,that watergate conspirator G. `Gordon Liddy be hired by the' ire-election committee, is one of the high presidential aides .who McCord has said he was told had advance knowledge of the bugging of Democratic .headquarters. In a sworn deposition to at- torneys for ' the President's re-election committee, McCord said that he. was first con- tacted in the fall of 1971 about doing security work in the Nixon campaign, and that the contact was made by Alfred Wong, the special agent In charge of the White house Se- cret Service detail. Wong, according to Mc- Cord's testimony, told him that if he was interested In a job in the campaign -someone would call him later. That call deputy chairmn of the Demo- cratic National- Committee, said yesterday that the FBI swept the Democrats' Water- gate headquarters last Friday, fruitlessly checking every tele- phone in the 29-office suite for La wiretapping device. One fed- eral source said yesterday that one of the Watergate conspira- tors had told federal investiga-I 'tors to look for a bug in a tele- !phone in the office of the par-~ ty's official press spokesmen, John Stewart and Joseph Moll- bat. , THE WASHINGTON POST) d.S"o--1)ys1 A spokesman for the Nixon Pre-election committee, Devan L. Shumway, said last night ,that Caulfield had denied to him that Dean was involved ,in the hiring of McCord. The 'White House said, _"Mr. Dean, says 'he knows of no such memo" as the one described in McCord's testimony, In another deposition, taken Mast Aug. 31, Secret Service Agent Wong said he recom- mended McCord to Caufield, 'but made no mention of ever contacting McCord personally ,about going to work at the President's re-election com ;mittce. : Caulfield, then an assistant :tn.' the President, "said that the committee was looking for a general officer who had '*knowledge of all phases of' ,security, and did I know of `one," ? Wong testified, and added: . I told (Caul- ,field) that I could not think .of a good general security of. ficer at that moment, but then, again, I said I just heard, that a man by the name of James McCord had retired from the CIA . . . and that the enjoyed a very good rep- 'utation in the community as ,a good security officer." In his deposition. Wong dc- came in September, 1971, from :dined to answer what Caul- John Caulfield, who identified; ,field's duties at the N'htte himself as a member of the' House were, citing "security White House staff, McCord' ,reasons." Caulfield, according continued. i 'to" Shumway, headed the se- At a meeting with Caulfield,: curity operation- for the 1968 McCord said, they discussed ;Nixon campaign and, before the general concept of earn- ,joining the White House staff, paign secutity and Caulfield worked "as a security man"I brought up Dean's name. "He! -for former Attorney General I I, N AU t h 11 o n c said he was sending some sort of memo to John Dean about me and my qualifications," ?MCord lcstified, and asked if McCord testified, and asked if background data that could he forwarded to Dean. . c Caulfield reportedly left the -White House staff in the .spring of 1972 to work for sev- eral weeks as an assistant to Mitchell, then the President.'s campaign manager, at the ,Nixon re-election committee. .He is now acting assistant di- ,rector for criminal enforce- ment at the Department of the Treasury. The Washington Post has repeatedly attempted to inter- view Caulfield over the past six months, but he has de- clined to be interviewed or specify his duties at the White' House or for the re-election committee. . McCord's deposition to law- yers for the committee is I being taken as part of one of the civil suits,arising from the June 17 break-in at the, Watergate. At one point in the deposi- tion McCord refused to say if he had any tape recordings in his possession that might be relevant to the bugging con- spiracy, after' being advised by attorney Henry B. Roth- blatt not to answer the ques- tion until being granted im- munity from further prosecu- tion. McCord was granted such immunity on Thursday, and Is' expected ~o answer the ques-' tion when the deposition 'con- tinues next week. Another attorney for Mc- Cord, Bernard Fensterwald, said the only tapes that he knows are in McCord's posses- sion are recordings of lectures. for classes he gave in securityl work at Montgomery Junior College. At another point in the deposition, McCord said he took notes about activities "in' the security area" while at the' Nixon re-election committee! and has since turned some ofj them over to a grand jury in- vestigating the Watergate bug-~ ging. I McCord also said that for a? two-week period in April he went daily to the apartment of: former Attorney General] Mitchell to pick up the Mitch- ells' daughter and drive her to school because Mrs. Mitch. ell feared, she might be 'harmed. He said he would often meet, Mitchell or Mrs. Mitchell or' 'their maid, there, although, Mitchell has said under oath he only met McCord once ?-~ at the re-election committee -? . except to pass him in the hall at the committee. Mrs. Mitchell, McCord testi- fied, was so concerned about ' the family's security, including the possibility of being wire-' tapped or bugged, that he once X-rayed all the furpiture in the Mitchell's apartment, after she ,received a death threat over her unlisted telephone. Mc- Cord said he also had a tele- phone company security officer check out the Mitchell's tele phones. McCord himself said he has been the target of a telephoned bomb threat since agreeing to -disclose all he knows about the Watergate conspiracy and pos- sibly other related illegal ac- tivities. NEW YORK TIMES 8 April 1973 CoEson 'Reported A Lie Test on Waiter gate By CHRISTOPHER LYDON Spedal to The New York Tlmq WASHINGTON, April 7- The examination did not deal Charles W.. Colson,, former spe- with the campaign of espion- cial counsel to President Nixon; age and disruption that was h as voluntarily taken a private lie-detector test in New York to buttress his sworn testimony that he had nothing to do with the Watergate raid last summer. Ciose friends of Mr. Colson 'in New York disclosed that Richard O. Arther, president of Scientific Lie Detection, Inc., who is an authority in his field, conducted the test and con- cluded on Wednesday that Mr. Colson had "truthfully" deniedl all foreknowledge of the plot. Mr. Arther and Mr. Colson's personal lawyer, who helped to prepare the examination re- 'fused to elaborate on the ques- tions asked and the results. Mr. Colson was unavailable. reportedly directed from thel White House against several Democratic Presidential candi- dates last year. Mr. Colson's resort to the' lie detector, believed to be the: first of its kid in the Water- gate case, appeared to signal a new eagerness among.,mem- bers of the President's inner circle to document their inno- cence. The 41-year-old Mr. Colson has consistently denied all in-' volvement in the break-in at the Democratic party head- quarters at the Watergate com- plex last June 17. It is acknowledged that Mr. Colson hired and supervised Other associates of Mr. Col-' E. Howard Hunt Jr., a former son who have examined Mr.; officer of the Central Intelli- Arther's report said that Mr. Colson had passed the test on five questions about the Water- gate affair. gence Agency, in his work as a White house consultant, Yet the Watergate conspiracy, to which Hunt pleaded guilty last `Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 CIA-RDP77-00432R0001b01400b1-1 January, was a complete sur-1 iprise, Mr. Colson has insisted. Ten days ago it was reported that, James W. McCord Jr., another convicted conspirator, had told Senate investigators that he had gathered the im- Sunday, April 8, 1973 THE WASHINGTON POST ED pression from Hunt and others that Mr. Colson had been in on the planning of their raid. Mr. Colson branded the hearsay charge a "goddamned lie." Referring to a grand jury appearance last summer, a sworn deposition in a civil suit and an interview with the Fed- eral Bureau of ? Investigation, Mr. Colson repeated, "I've testi- fied under oath three times that I had no knowledge of it." But with his name' in the headlines again, and with the search for masterminds con- tinuing, he decided last week on a lie detector test as a way to clear his name. I ? He was also concerned, friends say, about the effect of rumors on his law practice. Partners in his New Law firm, Colson & Shapiro, which has hired 10 new lawyers in anttici- pation of the business that Mr. Colson could attract, also urged him to undergo the test. New York associates of Mr. Colson who have read the test results say that he was,asked to state whether he had any knowledge of the bugging of the Democratic National Com- mittee offices before June 17, 1972, when five invaders were captured, with their electronic recording equipment, in the Watergate office building. He was also asked to say whether he had been telling the truth earlier when he denied all in'- .volvement. On these and three other closely related questions; Mr. Arther, the examiner, is reliably understood to have concluded that Mr. Colson was "truthful in all respects." Gene Sandacz, a vice presi- dent of Mr. Arther's company, said today that David I. Shapiro, 'Mr. Colson's law partner and R 0 -M -_nlr.on AT de By Carl Bernstein and Bob Woodward Washington Post Staff Writers White House chief of staff H. R. (Bob) Haldeman, the man who controls the flow of both paper and people to the President, is losing his cherished anonymity as his' name becomes entangled in the Watergate affair. The Senate has estab- lished a special select com- mittee to investigate the- Watergate bugging a n d other related acts of politi- cal espionage and sabotage and a federal grand jury has renewed its inquiry. . Sources familiar with both investigations say that final understanding of the widespread undercover ac- tivities of the 1972 Nixon campaign is largely de- pendent on determining Haldeman's role in those events. These are the known ele- ments about the President's No. 1 aide and the Water- gate, as pieced together from sources in the FBI, Justice Department, White House, Senate, the Commit. tee for the Re-election of the President and the Rep- ublican Party:, ? To date, Investigators have developed?no hard evi- dence involving Haldeman In the electronic eavesdrop- ping at the Watergate or other illegal activities. ? Haldeman told an off- the-record meeting with some Republican congress- men last month that he personally o r d e r e d the "surveillance" of Demo- cratic presidential candi- dates, including the taping of their speeches and public statements and gave the impresison that the opera- tion somehow "got out of hand." (One congressman at the meeting said he took this to mean that Haldeman acknowledged setting up the operation from which the Watergate bugging stemmed.) ' ? Haldeman effectively ran the President's reelec- tion committee, a creation of the White House, and put his own trusted aides in most of the key positions of responsibility there. ? Most of the men alleged to have played central roles in a broad campaign of po. litical espionage and sabo- tage - among them former presidential appointments secretary Dwight L. Chapin, deputy Nixon campaign di- rector .Jeb Stuart Magruder, and former presidential assi-. tant Gordon Strachan - had previously worked di, his legal adviser in this case, had helped to frame the ques- tions in a - manner that also briefed Mr. Colson in advance on the wording of the questions. Independent experts in the use of the polygraph, or lie de- tector, said today that the prep- aration of subjects on the con- tent of their examination was, standard procedure-that-helped, to heighten the sensitivity of the test. Mr. Colson, a tough-talking, ex-marine, has in the past seemed to take pride in his reputation as President Nixon's "hatchet man." He once said that he would do "anything Richard Nixon asked-me to do -period." Takes Credit For `Leak' He took credit for leaking the. report, hinting - at conflict of interest, that helped to defeat Senator Joseph D. Tydings, a Maryland Democrat, in 1970. And he was proud last year to, have nursed the White House alliance with the International fund were his own lieuten- ants. The White House has denied that Haldeman con- trolled disbursements from the fund. ? During a campaign strategy meeting in late 1971, Haldeman told then- Attorney General John N. Mitchell that certain secu- rity operations then under White House and Justice Department jurisdiction should be transferred to the Committee for the Reelec- tion of the President. One result of that decision was the transfer of Watergate conspirators G. Gordon Liddy and E. Howard Hunt Jr. from the White House staff where they investi- gated news leaks, to the Committee for the Re-elec- tion of the President. ? Three of the four men named by convicted Water- gate conspirator James. W. 1'IcCord Jr. as allegedly hav- ing advance knowledge of the bugging are present or former Haldeman deputies. Based on hearsay informa. tion he said he received from coconspirators Liddy rectly under Haldeman and and Hunt, McCord, former owed their positions and loy- security coordinator of the alty to him and the Presi- Nixon campaign committee, dent. testified to the Senate se- ? Haldeman was one of lect committee that Magru- five persons authorized to der, presidential counsel approve disbursements of John W. Dean III, and for- campaign funds from the ac- mer White House special count that financed the counsel Charles W. Colson had advance knowledge of d Brotherhood of Teamsters, the nation's largest union. The teamsters union endorsed the Republican President last year and recently hired Mr. Colson's law firm as its Wash- ington counsel. In a famous memo to his staff in the White House, Mr. Colson wrote last August, "I would walk over my grand- mother if necessary" to re-elect the President. However, he has vehemently and repeatedly de- nied that the.watergato hreak- in was his project. Mr. Arthur, who administered the examination of Mr. Colson, Is a busy New York practitioner and one of the country's rank- ing experts on lie detector tests and their use as legal evidence, Trained 20 years ago by John E. Reid in Chicago, Mr. Arthur now runs his own school- in New York, the National Train- ing Center of Lie Detection, Inc., and edits The Journal of Polygraph Studies. His offices in Manhattan are at 57 West 57th Street knowledge of the bugging. ? Since the arrest of five men inside Democratic headquarters on June 17, Haldeman-with President Nixon, former Attorney General Mitchell and White, House Counsel Dean-have been almost the sole archi- tects of the White House re-' sponse and carefully worded denials of the allegations loosely gathered under the term "Watergate," According to sources in the Nixon administration and federal law enforce- ment agencies, the Water- gate bugging stemmed from a broad campaign of politi- cal espionage and sabotage conceived in the White House in 1971, before Presi- dent Nixon emerged as the clear. favorite to be re- elected. Several sources, including past and present members of the White 'House staff,, have said that the clandes- tine activities represented a basic strategy to attempt to determine the person the Democrats would nominate as their presidential candi- date. The disruptions and sur- veillance were designed first to derail the presidential candidacy of Sen. Edmund S. Muskie (D-Mainc), 're- garded by the White House as the most serious potential threat to unseat the Presi? dent, according to the Watergate bugging an sources. other political espionage: the illegal electronic sur- The White House, particu. the key recipients of large veillance. All three have de- larly in the pof Halde- person ments from 'hat nied any involvement or bulk a y p I ok en. George Approved For Release 2001/08/071 JCIA-RDP77-00432R00V1~01 U~0?1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 McGovern (D-S.D.), tha eventual Democratic nom'- nee, as the easiest opponent to beat and attempted to gear the undercover cam-_ paign toward that end, th sources said. ' , Sen. Hubert H. Humphrey (D-Minn.) was reportedly the second choice of the White House, should the strategy fail in its principal objective-, of getting McGovern nomi- nated. Last fall, one highly placed source in the' Justice Department described the overall, well-financed pro- gram of espionage and sabc- tage as "a Haldeman opera- tion." Since then, others have used virtually the same description, including a former White House official and member of the Nixon campaign high command who said: "Most of it (the espionage) came out of the White House, out of you-know- where at the White House - Haldeman's office," He added: "I still don't think Bob knew about the bugging That's when the real zealots took over." Because Haldeman tradi tionally Insulates himself' from most direct involve- ment in controversial enter- prises ("He never really 'runs' anything to the extent of becoming involved in line activity," says one colleague; "he always spins It out to somebody else"), in-, vestigators have not ..been optimistic about determir- ing his exact role 'in the Watergate affair. At the very least, hard In- formation known thus far to Investigators puts Haldema;i on the fringes of the Nixo:i campaign's undercover ac- tivities; including a sur- veillance network, financed by at least $235,000 in cam- paign funds. The Nixon re- election committee main- tains the surveillance effort was intended to collect in- formation about radical, demonstrators, not regular Democrats. The prosecution at the Watergate trial accepted the committee's explanation-- articulated on the witness stand by Magruder-that a "legal" and "ethical" su:-- veillance operation aimed at radicals was expanded by overzealous Watergate con. spirators to Include Demo- cratic presidential candi- dates and the use of illegal electronic surveillance. High- level FBI and Justice Dcc- partment sources have long been skeptical of the cony mittee's version of what hap- pened. 'Yet, if as some White House sources and investiga-, tors contend, Haldeman wvf s at the very center of the broad espionage and sabo- tage campaign. it does not necessarily follow that he had knowledge of the. congressional sources. Watergate bugging and Haldeman "gave the im- other attempts at illegal pression" that his order to electronic surveillance. conduct "surveillance"-re- Many investigators have portedly his term for the ac- considered it likely that ei- tivity-included instructions ther the principal Watergate to monitor the movements conspirators or presidential, of candidates, according to aides in the White House one 'person who attended or re-election committee the unusual 5 p.m. meeting thought they could please on March 28 between Halde- Haldeman or President man and the Wednesday Nixon by expanding the Group of 25 Republican con- broad mandate to conduct - gressmen. intelligence-gathering opera- At the meeting, Haldeman tions and never revealing said he wanted tapes of ev- that information was being' erything the Democratic obtained through electronic presidential candidates said eavesdropping. about the issues and each And, at the highest levels other, a participant said, and of the federal investigation quoted Haldeman as stating: Into the bugging of Demo- "I wanted those tapes." cratic headquarters, some Several congressmen who believe that the Watergate attended the meeting said conspirators were vaguely that Haldeman also told authorized to, use "whatever them that the White House means necessary" to gather has seriously mismanaged intelligence, with the tacit its response to the Water- 'understanding that the me- gate affair and is now uncer- thods of gaining information tain how to proceed. One would never be explicitly source said that Haldeman, disclosed to their superiors. with o u t elaborating, indi- Sources inside the White cated'' that the President House, as well as federal in- hopes to take the "offensive"' vestigators, maintain that on the issue in the near only Haldeman, and perhaps future. 'a half-dozen other men close, Haldeman reportedly tip- to him and the President, peared before another group can definitively answer such of congressional Republi- questions at this point. cans recently. Capitol Hill And not only have the sources said that to their President, Haldeman and knowledge Haldeman has others high in the White' never previously held such House chain of command 'meetings, and they inter-. refused to answer press in- preted it as a sign that the quiries, but Mr. Nixon has; White House is deeply. said that his present and shaken both about Water- former aides will not appear. gate's effects, on the public before any "formal session" and on the President's rela- of the Senate's select corim-' tions with Congress. mittee investigating' the The Wednesday Group ar- Watergate allegations. ranged an appearance Even-inside the Executive Haldeman onlyaftter putting puttin ng Mansion, where the most g sensitive topics are often out an urgent request R. .,. quietly discussed at the Leader through ' Gerald House R. Minority . Ford ( the White House mess, knowl according the edge about the Watergate source,s. They y said sourced the since the .June 17 break-in at Wate . t ga VIA uIlly has been strictly on a need- about 10~minutes Vof the 11Ato-know basis, with many hour meeting. high-level presidential 'as- "Haldeman seemed per- sistants left completely in plexed about the ti en re sub - the dark, according to two ject," according to one par. White House officials. ticipant who observed that "The Watergate has- put a . the White House chief of pall over our business," ek- staff didn't seem to fit the plained one of the Presi- "tough, all-business reputa: dent's principal aides. An- tion he has," other added: "We get most One of the congressmen of our information from the present quoted Haldeman as newspapers. We're just as telling the W'ednes'day surprised as everybody else Group the follovding: "One when we pick up the paper morning I picked up The and find out what's been (Washington) Post and they happening." said I -controlled money Haldeman, who perhaps from some secret fund. more than any single per. Across the breakfast table, son, could throw some light my wife said, 'Bob is this on the matter, told a group true?' I said we had some of Republican congressmen funds and it probably was, that in 1971 he personally but I'd have to go down and ordered the organization of check. Wel1,.I checked and a political "surveillance" discovered that The post group on behalf of the had messed it up and I was Nixon campaign. Haldeman happy to come hack and tell said the operation was to my wife and children that it use entirely local means to wasn't true." obtain information, but "got The reference apparently out of hand," according to was to an Oct. 25 report, in The Washington Post that 'identified Haldeman as one of five presidential aides who controlled disburse- ments from a cash fund of hundreds of thousands of dollars used to finance polit- ical espionage and sabotage activities, and' kept in the safe of former Commerce Secretary Maurice H. Stans, the Nixon campaign finance' chairman. In its report, The Post had made an incorrect attrib- ution to grand jury testi- mony by one of his former White House assistants,' Nixon committee treasurer Hugh W. Sloan Jr. This ap- parently was the allusion made by Haldeman to the report being "messed . . up" by The Post. Highly placed sources in. both the Justice Department and the Committee for the Re-election of the President have subsequently recon-, firmed the substance of the- account, and in the words of one person with first-hand knowledge.. of the operation of the fund, identified Haldeman as "the guiding hand" behind the expendi-. tures from the fund, From that fund, Magru der, who was Haldeman's hand-picked choice to serve as interim manager of the Nixon re-election campaign until it was taken over by John Mitchell, authorized the payment of more than $200,000 to convicted Water- gate conspirator Liddy. In addition, Liddy re- ceived an additional $35,000 from the fund from another, former member of Halde- man's White I-louse staff, Herbert L. Porter, later the scheduling director for the, Nixon campaign. In addition to Haldeman and Magruder, according to .the sources, those author- ized to approve disburse- ments from the fund-which cumulatively totaled almost' $1 million during its exist- epce-were Mitchell, Stans and Herbert W. Kalmbach, President Nixon's personal' attorney and finance chair- -man of the campaign before . Stans left the Commerce Department in early 1972. ' It was Kalmbach, a New- port Beach, Calif., attorney, brought into the Nixon in tier circle by Haldeman more than a decade ago, who acknowledged to the FBI that he paid more than $30,000 from the fund to Donald H. Segretti, an agent provocateur allegedly hired by the White House to con- duct spying and sabotage operations against the pri- mary campaigns of Demo- cratic presidential candidates. In his statement to the FBI, Kalmbach said he was told to make the arrange. ments for paying Segretti by Chapin, then President Nixon's appointments secre- tary and Haldeman's closest Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 White House deputy. Cha- pin, a protege of Haldeman at the J. Walter Thompson Advertising Agency who re-, ported to the President and Haldeman at the ' White House, resigned his post this winter, some four months after published reports first alleged that he hired Seg- retti. "Haldeman trusts Dwight further than anyone else,"'a White House colleague com- mented shortly after the Segretti-Chapin connection was first reported. "Dwight could never have gotten into, this without Bob's approval." Haldeman's principal' White House political aide during the 1972 campaign, Gordon Strachah, has also left the presidential staff in the wake of news reports linking him to the hiring of Segretti, a University of Southern California class- inate of Chapin. According to federal in- vestigative sources, Stra- chan put Watergate conspir- ator Liddy in touch with Segretti to merge two politi- .cal spying and sabotage op-, erations that until then were nominally separate one run by Hunt and Liddy at the Nixon re-election committee, and the other in- volving Segretti and the White House. Strachan served as Halde- man's political liaison with Jeb Stuart Magruder and the re-election committee. "Ac- cusing Strachan," said one White House aide last fall, "would be like accusing a secretary who took- a letter THE WASTTTNGTON POST as being part of a'conspiracy. He is Haldeman's runner"- a view shared by other sour- ces at the White House and the re-election committee. The same day that Halde- -man appeared on Capitol, Hill, ? Colson, the' former presidential special counsel, was named in ? McCord's hearsay testimony as one of those allegedly having ad- vance knowledge of the. 'Watergate bugging. Colson was a principal architect of the 1972 Nixon campaign strategy who reported di- rectly to the President and :Haldeman before leaving the White House staff last month. . - On March 30, 1972, Col son's political aide at the', White House, W. Richard' Howard, wrote a memo to Haldeman's "office mana- .ger," White House staff sec retary Bruce Kehrli. The' memo, according to FBI sources, described Hunt who was hired as' a White House consultant on Col- son's recommendation - as "very effective for us" and formally recommended that he be shifted to the Com=mittee for the Re-election of the .President. Kehrli, according to court papers, was instructed on ,June 19 by White House counsel Dean -- a primary .figure in the Nixon-Halde- man chain of command-to-' 'secure materials in Hunt's office safe after Hunt had ,been implicated in the ' Watergate break-in two days earlier. Kchrli and another White Alonday,:Apr112,1973 N Ines 1 '. I By Jack Anderson Watergate defendant James .McCord asserts that the hug- Ing of the Democratic Na- onal Committee was planned secretly in former Attorney General 'John Mitchell's Jus- tice Department office by Mitchell, White House counsel John Dean and. Nixon cam- ipaign aides Gordon Liddy and !Jeb Magruder, McCord has given a written memo to this effect to the Senate committee probing the Watergate scandal. 'Quoting Liddy himself,.'the'stolid Mc- Cord, who served as campaign security chief, sets the date of the meeting In February, 11)72 --- while Mitchell was still At torney General. In his memo for the Senate dated March 26, McCord says Liddy gave him considerable details about the clandestine Justice Department meeting, As AlcCord reports in his two- page initialed document: "John Dean, Jeb Magruder, Gordon Liddy and John Mitch- ell In Feb. 1972 met In Mitch? ell's office at the Department 01 au5Lice anu lit: 'uApproved IFoFI'Re?20V1'Mff9rg formal discussion of bugging and related operations. "Liddy had planned for the meeting very carefully and had drafted out in longhand budget figures ' for various items of expense, and had dis- cussed them and certain de- tails of the overall operation with Jeb Magruder (who) re- portedly set up the meeting with Mitchell." McCord's carefully worded memo says he believed Liddy was planning to send or hand carry the plans "to someone in the White House. I do not know to whom he took it." As Liddy recounted It to McCord, the crucial Justice Department meeting was "set up for one particular day, but was cancelled, and reset for a day or so later" McCord's statement says Liddy spent about $7,000 to have four-by-four-foot charts drawn up for the meeting. "The charts were brought in late one afternoon and left in (Liddy's) office on the 4th floor wrapped in brown paper. My impression was that they were commercially done . - ." ;.House assistant took the contents of the safe to' .Dean's office. Dean kept the' material (which included' electronic equipment and in., struction booklets) for , at? least six days before turning ,it over to the FBI. According to court papers filed by Hunt, two note- books-said by his attorneys, to contain names and ad- -dresses that could have been. used as investigative tools in: the Watergate probe-were, not among the items re- ceived by the FBI. . During the period while: Dean was holding the mate- rial from Hunt's safe,- he: told an FBI agent that he, did not know whether Hunt, had a White House office, prompting Acting FBI Di- rector L. Patrick Gray to tell. the Senate ? Judiciary Com-, mittee that Dean "proba?bly" lied 'to the bureau. In the wake of June 17 break-in at the Watergate, President Nixon has said he. appointed Dean to conduct a, .White House investigation. to determine if members. of, .the presidential staff were. 'involved in the bugging op-, eration. That investigation, which absolved all then-current White House personnel, was "a direct pipeline i to Halde- man," according to one of the few Justice Department officials familiar with its de. tails. Watergate conspirator Mc- Cord, during his appearance before the Senate 'select` committee, was asked if he' ' knew whether Haldeman had anything to do with the gathered In Mitchell's office in the afternoon, as McCord recalled it and "from what Liddy told me it lasted an hour or more." Liddy, according to McCord, said that the discussions at the Justice Department "covered the pros and corts of various ;bugging type operations. No I decisions were made at the 'meeting . but the impres- sion Liddy had seem(ed) to be 'that the operation would be approved." Within a few days, "Dean told Liddy that a way would have to be worked out to un- dertake the operation without directly Involving the Attor- ney General so that he would have deniability about it at a future date. "Dean told Liddy at this time that the funding for the operation would subsequently, come to him through other; than regular Committee for the Re-Election (of the President) funding mecha- nisms so that there would be Watergate bugging, ` and' replied: "I have no knowl- edge of it, no knowledge of it if he did." Nonetheless, several news-' papers mistakenly reported that McCord had implicated Haldeman.- Meanwhile, Sen. Lowell' Pr Weicker (R-Conn.), a fresh: man senator and member of the Watergate select, com-? mittee, cited highly placed, Republican Party sources ? and charged last week that, Haldeman had condoned the. Nixon campaign's overall es-rt pionage and sabotage opera: tions. The result, said Weicker,, was "an almost competitive' attitude as to who could do the dirtiest deed" at the Committee for the Re-oleo-; tion of the ,President. Dc' manding Haldeman's resig-, nation, Weicker said the- White House chief of staff "clearly has to accept re- sponsibility" for what occur- red during the campaign. But last Wednesday, Sen: Sam J. Ervin (D-N.C.), chair-` man of- the Senate commit- tee on Watergate, issued a statement about Haldeman that Senate sources said was' designed to keep his com-' mittee clear of any charges of innuendo in its investiga Lion. Said Ervin: "In the interest of fair.: ness and Justice, the com mittee wishes to state pubes licly that as of this time it has received no evidence of any nature linking Mr. Haldeman with any illegal' activities in connection with the presidential campaign of 1972." . lan'm", r .no record of it ..." Liddy said Dean told him "to destroy the ($7,000) charts but Liddy said that he had paid so much for them that he did not plan to do so . - . I ,never saw the charts ... "About 30 days after the February meeting In the A/ G's (Attorney General's) of- Ifice, Liddy told me that the operation 'had been approved' My Impression was that ,this word of the approval, came from 'Dean, although this was not specifically stated by Liddy." A few months later In June, McCord and four Cubans were trapped Inside Democratic headquarters by city police. ,All five, plus Liddy and ex- White House aide Howard Hunt have been convicted In the case. McCord is now tell-' ing his story to the Senate. Footnote: Mitchell, Magru- der and Dean have all denied any advance knowledge of the bugging. CIA-RDPi*-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Tine Wasbington Merry-Go-Round By Jack Anderson Sources close to the Water- gate investigation have put to- gether for us a few more jig- saw pieces in the puzzle. Here are the latest fascinating facts which investigators have. established: Presidential counsel J'ohn~ W. Dean III, despite vigorous, White House denials, lieii to FBI agents when he claimed not to know whether Water gate conspirator E. Howard, Hunt had a White House of-, fice. This Is spelled out clearly in. FBI reports which have now been circulated outside; the FBI. So many people have read the reports that acting FBI Director L. Patrick Gray had no alternative, under oath, but to agree that Dean "probably lied." It is a federal violctlon to make a false state- ment to the FBI. 0 I1oth Hunt and Gordon Liddy, another White House consultant convicted of Water- gate crimes, indiscreetly men- tioned aeveral? big names to their co-conspirators. Al- though Hunt and Liddy had direct contact with the White House inner circle, their five- man wiretapping team had no THE WASHINGTON POST 'Tuesday, April 3, 1973 access to the likes of John N, Mitchell, John Dean, Jeb Ma- gruder and Charles Colson. These bigwigs, link to the ille- gal activities, therefore, is now strictly hearsay. Investigators have . a better circumstantial case against Magruder than the others, though he has de- nied under oath any advance knowledge of the burglary- bugging operation. ? Aside from this . name'. dropping, the conspiratorial Hunt and Liddy, whose direct testimony could implicate the higher-ups, always followed the old CIA rule: "When three people know a secret, it is an open record." Investigators de- scribe ,Hunt as a CIA-trained professional sworn to keep his mouth shut. Liddy is regarded as eccentric, with an obsessed sense' of mission. Of the two, Liddy was most inclined to brag and drop names. + The funds for the Water. gate break-in and - bugging were distributed by Hunt, who always dealt in cash. After his cohorts were caught at gunpoint inside Democratic Party headquarters, he contin. ued to dole out cash to pay the legal and living expenses of the defendants. But there- atergate 'after, Hunt's superiors never contacted him directly but de- livered money through his wife, Dorothy, who was killed in a Chicago airliner -crash with $10,000 in her purse. She would receive cryptic instrue- 'tions by telephone, then would pick up money from go,-be., tweens. A reluctant conspirator, she told her husband not to trust the telephone promises.. , ? James McCord, the mem- ber of the Watergate conspir- acy who is now talking, worked with the White House staff as a CIA agent. One source told us McCord's CIA activities brought him into di- rect contact in the 1950s with Richard Nixon, then the Vice President. McCord has ac- knowledged that he was hired as President Nixon's security, chief for the 1972 campaign through his old White House contacts. Investigators de- scribe McCord as solid, hon- est, intensely patriotic, with an almost fanatic hatred of communism. 0 Despite an outward ap- pearance of amity, Hunt and Liddy were jealous of each other, each vying with the other to bring off more spec.: tacular coups. In currying fa-' vbr with the White House; Liddy aimed to please his pa-1 tron, presidential counsel Dean, while Hunt was anxious to gain the plaudits of Charles Colson. + McCord, a 'pragmatic, ex FBI man, has confided to his friends that he is disappointed with the Senate committee In- vestigating the Watergate. He had hoped Sen. Sam J, Ervin Jr. (D-N.C.), ? the chairman, would put off the session with Ervin absent. Instead, it was left in the hands of Sen. How- ard Baker (R-Tenn.). McCord' had gone to the unusual ex- tent of preparing a memo that carefully distinguished be- tween what be knew of. his own knowledge and what was 'hearsay. But senators' mean- dering questions clouded the Important distinction and Mc- Cord wound up being unfairly criticized for giving hearsay testimony. + McCord has acknowl- edged that he was promised executive clemency and finan- cial support for his family If he would plead guilty and keep quiet about his involve. ment in the Watergate crimes.. `1rae W.-ashington Merry-Go-Round By Jack Anderson The truth about the Water- gate scandal, it now appears, may be locked behind the clenched mouth of G. Gordon Liddy. As evidence that he won't talk, Justice Department, sources tell us Liddy once held his hand over a burning. candle until the flame seared through the flesh of his hand and burned the nerve endings. He merely wanted to prove to a couple of girls in Detroit, say our sources, how tough he Was. - Both E. Howard }runt and James McCord, ' the' other Watergate ringleaders, have now implicated ex-Attorney General John Mitchell, White House counsel John Dean and ex-presidential aide Jeb Ma- gruder In the Watergate break-in and bugging, The three have denied any ad- vance knowledge of the illegal activity. Only the tight-lipped Liddy can give direct testimony. He was the liaison between thet higher-ups and the spying?sab- THE WASHINGTON POST Friday, April 73, 1973 pl.P-.a Lway n-loey io w ~ otage operation. Hunt and Mc. i a fascination for guns; that he Cord have recited elaborate distributed to various girls details, which they swear Liddy gave them about his meetings with Mitchell, Dean and Magruder. But it will take Liddy's testimony to make the case stick. The "Cowboy." as his, friends call him, isn't talking. i He took an additional sen- t tence. for contempt rather than answer questions before. a grand jury. And Justice De- partment sources are con- vinced that a man who would hold his hand over a candle flame will sit it out as long as necessary in a jail cell. White House aides, mean- while, are spreading the story that Liddy is mentally unbal- anced and promoted the whole Watergate adventure himself. This kind of talk could back- fire and bring Liddy out of his jail cell with an angry rebut- tal. We have carefully investi- gated the possibility, however, that Liddy may have recruited the Mission Impossible team and ordered the Watergate break-in strictly on his own to satisfy Ibis romantic bent. We established that he had huge pictures of himself be- side a police car, gun and flashlight at the ready; that he threatened to kill people who crossed him; that he terrified the youngsters in his neigh- borhood once by leaping out at them "like Batman" from a garage roof. My associate Jack Cloherty talked to parents and children, in Liddy's neighborhood. They said he sent his own children to bed before dark and be- came agitated when the neigh. borhood kids, made noise around his house. He berated them, chased them and, on one occasion, leaped upon them from a hid- ing place on the garage roof. Another time, he lay in wait, for some loudly talking teen- agers, jumped them and slap- ped one of them around. After this incident, a delega- tion of parents called on him to complain about his abuse of the neighborhood children. They noted that his guns were prominently displayed on the dining room table throughout] their visit. Others who know Liddy de- scribe him as mentally sharp, if slightly eccentric. Ile had a reputation, they say, for tell-i ing the truth. "If he ever did, talk and denied others were: involved, you could believe, that, and if he implicated oth- ers, you could believe that,", the Los Angeles Times quoted) Liddy's former law partner as saying. ' Liddy's father, Sylvester, Liddy, a respected New York i attorney, also described the i rumors about his son's mental! instability as "nauseating" and denounced the portrayal of t the younger Liddy "as flaky, self-promoting adventurer." We have also established that money was delivered by higher-ups to pay the legal, and living expenses of the break-in crew after they were caught. at gunpoint in Demo. cratic Party headquarters. This suggests that the highet+ ups, whoever they are, recog? nixed their responsibility fot the Watergate crimes. Meanwhile, Liddy is keeping his mouth shut in jail where, characteristically, he got antra an altercation with another inb mate over a hairbrush and wound up with a cut ear and a bruised nose. a 1973. United Feature syndicaW -,Qpproved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 THE WASHINGTON POST Tuesday, April 17,1973 The Washin ;ton Merry-Go-Round- ... R cC'ord Tells of aternate ~'ayment~ By Jack Anderson In secret testimony before the grand jury, Watergate defendant James McCord has confided that his co-conspira- tor, Howard Hunt, last July feared the President's cam- paign chiefs were abandoning 1them and wrote a three-page 'letter demanding "to contact someone in the White House." Thereafter, money allegedly was delivered to Hunt's attor- ney, William O. Dittman, for distribution to the defendants. Mrs. Hunt, acting as the cour- ier, arranged to meet McCord at various places and slip him cash payments. McCord testi- fied that he received around $45,000 after the Watergate break-in for "salary" and legal expenses. The grand jury Is trying to track down who authorized the payments and whether the money was intended to buy the defendants' silence. Bri'h- cry to obstruct justice, of course, is a serious federal vio- lation. As McCord related it to the grand jury, he received a phone call around July 20 from Hunt. "He asked me," said McCord, "to go to a pay phone away from the house. !'Afraid We Might Talk' "He felt the Committee to Re-elect the President (was) trying to do him in and to do us in for good and to put us away and abandon us. This ater g ate Called :. art of. Vast' lan, lli~ `Executive Clemency' Still later, Hunt brought up the same question with him di- rectly. Testified McCord: "(Hunt) said, 'we have legal fee money for you.' And I said, 'What goes along with it?' He put it this way, 'Everybody's naturally inter- ested in knowing whether you're going to keep quiet."' McCord felt this was merely a maneuver to keep him quiet until the election, 'so he put off Hunt until Nov. 7. Then'he decided "to go ahead and take the legal fee money." But he refused to be bound if, the le- gal fees were offered "as a weapon to keep us from. say- ing anything." The question came up again at a meeting with Mrs. Hunt on Nov. 30. As McCord inter- preted the conversation, "essentially there wasn't going to be any more money unless you fellows agree to plead guilty and take executive clemency at a later time and keep your mouth shut." He quoted her as saying, Cher' Hunt nor McCord would,, go along with that cover story. Then there was talk about,, blaming the whole affair" on Gordon Liddy, the Watergate" ringleader. McCord quoted.. Mrs. Hunt as saying she, had- been told "that there wore now plans to charge' Liddy.. Some type of plan was tinder way to charge Liddy stole the money and bribed ,Hunt ? and McCord to perform the opera- tion. I said, 'Well, you can pass' the word that I won't stand for that ... it's not true. It's not the way it happened.' ' Parkinson has denied any role' in getting money to, the de- fendants. n 1973, United Feature Syndicate THE \VASHINGTON POST IPedriesday, April 18, 1973, was his, almost his exact words. ."And he said that he was go- ing to do, well, he said words to the effect that he was-going to now assume a leadership role in dealing with the com- mittee." McCord said he, too, felt "they were more inter- ested in keeping us in jail than they were in getting us out, because they were afraid we might talk." McCord later learned from Mrs. Hunt that her husband had written a three-page letter which, was read to the I cam- paign committee's . attorney, Kenneth W. Parkinson. Re- counted McCord: ."She said that 'when Bittman. read the letter to Parkinson that Hunt wanted to contact someone in the White House, Parkinson said, 'Give us a week.' And Hunt came back and said, 'No you get two days.' "So they said, 'Okay. Some- thing will be worked out in a couple of days.' And that something, It appeared to me, had to do with a contact and it also had something to do with the funding for the defendants Not long afterward, Mrs. 'Hunt, .using the code name "Chris," called to arrange the first transfer of funds. "I went over to her car and she gave me an envelope and she said, 'This is the payment for your salary 'for five months, begin- ning in July through whatever it is'-I think It was Novem- ber... "I asked her if she wanted a receipt and she said, no, it was not necessary, that she would be making an accounting to Mr. Bittman for it." McCord also talked to her about legal fees. "They want to, know" she reported back to him later, "if you're. going to keep quiet." "They want to know if more, than one year is okay with yon ... staying in jail more than' one year, and then executiv4- clemency." McCord turned. down the deal saying he was going to plead not guilty and, fight the case. "And she re; peated this to me three more, times," he recalled, "and''1.t was in the context of 'Well, Plitt not sure they're going to. give you any more money' .. . "The meaning was very clear, that 'Unless you agree^ tq go along with this, you'can' forget about any further legal fee money, or any further sal- ary continuance.' N + Footnote: After the break-iii' squad was arrested inside Democratic Party ' Headquar-i tern, McCord testified, the' higher-ups first wanted 'to- blame it on the CIA. But 'nei-: By Jack Anderson Watergate conspirator How- ard Hunt has told a federal grand jury that he and Gor- don Liddy traveled to Miami under aliases in December, 1971, to 'set up a vast spy mis- sion against the Democrats. As part 'of the mission, Hunt, a former Central Intelli? gence Agency sleuth, went to the CIA's placement bureau, which willingly provided him with the name of a locksmith skilled in "lockpicking" and opening "a locked room." The locksmith, Thomas Amato, said he'd rather sailboat with his family than spy for the GOP, Hunt testified. The articulate Hunt, who once paid a secret visit to ITT memo-writer Dita Beard in an ill-fitting red wig, said he dis- guised his name during the Miami mission out of habit. As a CIA man he had often trav- eled under false papers In case he was hijacked to Cuba, he said. It was natural, then, that when he went to Miami with Liddy, the same air of mystery that surrounded Hunt's CIA work and his numerous pub- lished thrillers prevailed. Hunt told the grand jury that his and Liddy's main tar- get was information on the Democratic National Conven- tion in Miami, and especially on the role of Sen. Edward Kennedy (D-Mass.) who then seemed' to have "a lead" ,among the candidates. Hunt testified that "when Kennedy . would in fact be a candi- tate" was the big question for Liddy, the flamboyant counsel for the Committee for the Re. election'of the President. But Hunt, traveling as "Ed: Warren" and Liddy, as "George Leonard,' had far more in mind than just espio- nage on Kennedy's place in the presidential race. They checked into Miami Beach's plush Playboy Plaza and met with Hunt's old "comrade inj arms," ex-CIA agent Jack Bau-1 man. -What Liddy, who was running the Miami venture, wanted from Bauman was no less than total "Intelligence on everything the Den'ocratsi Approved For Release 2001/08/97 were doing "in terms of politi- cal action," Hunt swore. Obviously awed at the breadth of this mandate for spying, the prosecutor in the grand jury asked Hunt, "What kind of Democratic activities?" Hunt reiterated: "Political activities." Under questioning, Hunt spelled out for the jurors Lid- dy's grandiose master scheme. For one thing, Liddy wanted to discover all that the Demo- crats were doing "against each other." He wanted to know all' their motivations," who was strong enough to "knock an- other man out of position" and who at any moment was "gaining ascendancy," Hunt. asserted. The Liddy blueprint also called for spying on those can- didates close to "radical peo- ple," reports on where all can- didates were at all times and how many hotel rooms each candidate's delegations were occupying. Faced with this demand for nearly total knowledge of the opposition, the capable an-- B y l' h C~IHtR~F'-43ZK000100'r4?a'qdy meant. Presu=- "his services would come very high," Hunt testified. In fact, said Hunt, Bauman wanted payment in the form of a "trust fund [for] the future of his children." The Playboy Plaza meeting ended with Bauman agreeing to "give the matter some con- sideration and [to] let us know." A few days later, Bau- man sat down again with Hunt at the Hay Adams hotel just across Lafayette Park 'from the White House. As Hunt gloomily described it to the grand jury, Bauman said fie "was not going to cooperate" with the master spying scheme. . At about the same time, the conspirators got the bad news on Amato's preference for sailing. 'When the prosecutor asked Hunt why they needed a lockpicker, Hunt said . Liddy told him that in "ensuing months" there would be a "wide variety" of tasks, among them lockpicking. Later, ob-, served Hunt pointedly to the grand jury, he found out exact. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 bly Hunt meant to' break-i;t` at Democratic headquarters- In' Washington's Watergate come plex. In the course of his appear: antes before the grand jury; Hunt testified that Liddy bo.d a White I-louse office and pass at the very time he was plot- ting missions against the Dem= ocrats. Hunt, too, had a ,White House office which the Secret Service had secured with '?a special lock, he said. His pa= pers were in a three-way cot- s bInation safe, which Whitd House aides cracked after 'Hunt's arrest. - ~` It was In the White House' and, once, In Hunt's kitchen at home, that Liddy unfolded: some of his plans for activities' THE WASHINGTON POST Thursday, Aprii-M;1973 h Washington Merry-Go.llound' y Jack Anderson 'lease we needed to get even Secret grand jury testimony reveals that H. R. Haldeman, the White House major domo, ordered $350,000 in $20, $50 and $100 bills locked in 'a White House safe during the 1972 campaign. After the election; the cash was delivered surreptitiously to a campaign aide, with Haldeman's approval, In an ap- parent violation of the new campaign disclosure law. This is the sworn testimony of Haldeman's loyal former as- sistant, Gordon Strachan, who picked up the money the day before the disclosure law went into effect. He received it from Hugh Sloan, the cam- paign treasurer, but returned it to Fred LaRue, a campaign aide, at his Watergate apart- ment.- It took Strachan 45 minutes, he testified, to. count all the cash. Yet no receipt was asked, and none was given. He quoted LaRue as saying merely: "I'll take care of this." The money was supposed to be used, explained Strachan, for polling. He acknowledged that the President's campaign committee was already con- ducting "a very, very exten- sive polling operation." Yet $350,000 was taken away from the committee and stashed in the White House, he said, "in WASHINGTON POST 20 April 1973 ' "Who told you to go to Mr. LaRue and give him the money?" asked Seymour Glan- zer, an'assistant U.S. attorney. "I decided that myself," said Strachan. Haldeman's Role "Did you discuss this inci- dent with anybody after- wards?" pressed' Glanzer. "Yes, I told Mr. Haldeman afterwards that I had given the money to Mr. LaRue." "What did he say to you?" "Fine," .Strachan, quoted Haldeman as saying. "Doesl the ... Committee to Re-Elect the President con- duct its business in Mr. La- Rue's apartment?" demanded the prosecutor. "No," said Strachan, "It was a matter of courtesy. He's a senior official. He asked me to drop it by after Work ..." "Do you have any idea why Mr. LaRue asked. you to re- turn this money to his apart- ment, where actually you could just walk across.17th Street?" asked the grand jury foreman. "No, I do not," said the wit- ness. "I mean, I find it somewhat dangerous for a person to be carrying this amount of CAV rT7 i ernied A uthue'n-li6 Prosecution sources said yesterday that columnist Jack Anderson obviously is in possession of authentic copies of the minutes of tes- timony before the federal court grand jury that is in- vestigating the Watergate bugging here. One source indicated that the continued printing of ex- cerpts from the grand jury testimony by Anderson "is causing us all sorts of prob- lems" and is hampering the investigation. No one in the U.S. attor- ney's office'here would com- ment for the record on the publication of testimony by Anderson. One source said that "very, very few" per- sons have access to grand jury transcripts, but he de- clined to say whether the source of the leak had been against the Democrats. Hunt kept '$8,500 in cash In his White House safe 'for Liddy in case speedy funding was needed on weekends for' Liddy's Mission Impossible duties. The money finally was turned over by Hunt to lawyer' Douglas Caddy, after' the Watergate housebreakers were captured on June 17, 1972.' caddy was the first lawyei to' step in on behalf of the Wa- tergate suspects. Footnote: While the Bau- man approach failed, there is `!evidence that the ,Watergate :gang was planning other spy, Ing against the Democrats' at the time they were captured. a 1973. United Feature syndieatS F Bte lime ) U--Nne 0--d C ''Sh money in Washington in the evening...." said the fore- man, "when it would have been much easier and handier just to walk across 17th Street." "I agree, and I was nervous doing it, but I did it," 'shrug- ged Strachan. "Did it occur to you at the time," broke in another juror, "that it was not the proper way to do it?" - "Well, 'proper' is not-" stammered Strachan. "Is 'proper' an obsolete word these days?" snapped the juror. "No," said Strachan. "Whether it was proper or im- proper, I was asked to return the money. I returned the money, and he asked me to de- liver it to him at his home, and f did that." Incredulous Juror The foreman seemed incred- ulous. "I'm still puzzled," he said. "You get the money from the treasurer or whatever Mr. Sloan's position was in the committee ... and the money sits for seven months. Then Mr. Haldeman decides it has to go back to the committee. You call Mr. LaRue-you don't call Mr. Sloan and say 'Hugh, seven months ago you gave me this $350,000-and we haven't used any of it; I'd like Normally, only prosecu- tors, court reporters, tran- scribers and typists would have access to the tran- scripts of grand jury min- utes. ' Anderson's columns this week have contained ex- cerpts from testimony by convicted Watergate con- spirators James W. 11cCord. .Jr. and E. Howard Hunt; Sil- via Panarites and Sally Har- mony, both former secretar- ies to Liddy, and Robert Reisner, assistant to former White House aide Jeb Stuart Magruder. Anderson's column on Tuesday was typical of some of the lengthy grand jury excerpts he has been using of late. For example, at one 'point Anderson quotes Mc- Cord as telling the grand jury of a phone call he re- ceived last July 20 from to give it back to you since I got it from you,' but you call Mr. LaRue." First Strachan said it was because Sloan had left, the committee. When asked why he, didn't return It to his suc- cessor, he said: "I honestly don't know." Then Glanzer resumed the questioning. "Have you talked to Mr. Haldeman in the last couple of weeks?" he asked. "Yes I have," replied Stra- chan. "About your appearance be. fore the grand jury?" "Yes I have." "What did you say to him and what did he say to you,'; pressed the prosecutor. - "He told me," replied Stra- chan, "to tell the absolute' truth and to not worry about any political consequences., And those are my orders ...". "Is there any 'reason," de- manded Glanzer, "why Mr,. Haldeman would have to urge, you to tell the truth?" "No, there's no reason," said Strachan, "except it's a matter of real concern, the political damage that has resulted from this." The handsome Strachan had one final word about llalde. man. "He's a man," said Stra- chan, "I admire very much." t 1973. United Feature Syndicate Hunt. Anderson quotes Mc- Cord as saying: "He asked me to' go to a pay phone away from the house, where I - could call him, which I did ... . "He felt the Committee to Re-elect the President (was) trying to do him in and to do us in for good and to put us away and abandon us. This was his, almost his ex- act words." "And he said that he was going to do, well, he said words to the effect that he was going to now assume leadership role in dealing' with the committee." . Anderson's associate, Les Whitten, said yesterday that he and Anderson "have cop- ies of the grand jt;ry pro ceedings. I want to make that clear. We do not have the actual documents them- selves." . ,,Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R0001'00140001-1 The Washington . Alerry-Go-Round THE WASHINGTON POST rrtday, April20,1973 eb Tightens , Around Nixon Advisers ? By Jack ? Anderson The Watergate web Is tight= ening around three of Presi. dent Nixon's closest advisers- former Attorney General John Mitchell, former aide Jeb Ma. gruder and White House coun- sel John Dean. All three have- protested their Innocence, and the case against them is still largely circumstantial. But witnesses .before the grand jury have given secret testimony, which darkens the cloud over' the trio. The apse against them rests heavily upon Watergate wire- tapiier James McCord's charge that the burglary-bugging op- eration was actually planned 'in Mitchell's Justice Depart- ment. office by Mitchell, Ma- gruder and Dean, with Water- 'gato ringleader G; Gordon Liddy givipg the briefing, On April 2, we quoted from ?McCord's confidential initialed memo that "John Dean, 'Job Magruder, Gordon Liddy and John Mitchell in Feb. 1072 met In Mitchell's office at the Department of Justice : and held the first formal discus- olon of hugging and related op'orationy," - The memo states that Liddy prepared huge . four-feet-by- four-feet charts for the meet- Ing. "The charts were brought In late one afternoon and left in (Liddy's) office on the 4th floor wrapped in brown pa- per," McCord related. Liddy's former secretary, Silvia Panarites, - has con- firmed to the grand jury that a meeting was scheduled. "It was a meeting at the Justice' Department,"' she testified, "among Mr. Liddy, Mr. Magru. der and Mr. Mitchell." Mysterious Package "Now, Miss Panarites," asked Assistant U.S. Attorney Donald Campbell, "did, there come a time when you ob- served a brown package in Mr; Liddy's office?" "Yes, sir," she replied. She described the package as about fours feet in dimension, an inch thick, wrapped In brow>i paper. "Mr. Liddy him- self carried the package into the office ... "? she testified. "He did say that I was not to look in the package; that it was better for me not to know of its contents ... " The mysterious package was left in Liddy's office over- night, she said, so Liddy asked her to hide it in case "somebody should happen to walk in,.it would not be seen .. So I moved the bookcase and put the package behind the bookcase." Another prosecutor, Sey mour Glanzer, asked whether Liddy's removal of the pack. age the next, day was "related in your mind to this appoint.' ment he had at Justice?" "I can't relate it to any- thing," she responded, "other, The Washnnng1on Merry-Go-Round pas or "warriors," and began organizinging them against the Chinese. In the cloud-cap- ped regions of Mustang and Dolpa, the Khampas were out- fitted with American saddles, small 'arms and other equip- ment. Then, out of the craggy highlands, they swooped down into Chinese military encamp- ments in Tibet, disrupting communications and stealing supplies. This distressed the Nepalese authorities, ? who never authorized the raids and feared Chinese retaliation. We spoke to sources who were invited to participate in a raid on Chinese army facili- G'IA-Inspired Inibet By Jack Anderson ' In mountanious Nepal, least bloody war is winding! America's least known and down. The warring tribesmen and the Central Intelligence' Agency, which recruited them,: are losing interest In the ad. venture. After the fleece-clad Red ,Chinese legions crushed a re- volt In Tibet in 1959, the fierc-_ est of the Tibetan clans fled on wiry ponies into the high fastness of Nepal. CIA agents slowly gained the confidence of the moun- tain fighters; known as Kham- than the fact that he removed a blue folder, which Reisner` it himself." testified he associated with Mitchell reiterated, to us in JLiddy. a telephone conversation that he had no advance knowledge of the Watergate bugging. Ma- gruder acknowledged, attend- ing the February, 1972, meet- ing but insisted the bugging had not been discussed. We couldn't reach Dean, but our White House sources say he has now admitted'to his supe- riors that Liddy presented var- ious "wild" bugging plans at the meeting. "Gemstone" Papers The most damaging grand jury testimony disputes Ma- gruder's sworn statement that he knew nothing of the Water- gate bugging. Another Liddy secretary, Sally Harmon, testi- fied that she had typed up re- ports on the conversations of Democratic Party officials. She' used secret stationery with the. code word, "Gem- stone," printed on top, she said, She reported that the cam- paign committee's own printer had delivered the "Gemstone" stationery to Liddy's .'office and had cautioned her: "Mr. Liddy said no one is to' see this." After the arrest of the bur- glary-bugging squad at the Watergate, Magruder in . a phone call from California in- structed his assistant, Robert Reisner, to remove sensitive files from his office. One was "Now my'memory is vague," he stated, "as to whether,it said 'Source' or whether'it said 'Memorandum from.' . But iC said that first, and then 't'lie second word was ' 'Gemstone.; ' It seemed to me that was from "Gemstone?" asked proseru.; tor Earl Silbert. "That's right." Reisner said he turned .the "Gemstone" folder over ?'to campaign official Robert Odle who later testified he returned it to Magruder without exam- ining it. Reisner also recalled that Magruder, in introducing Liddy to the staff in January, 1972, said: "This is Gordon Liddy, who is going to come to the staff as a lawyer, and Gor- don Liddy also has other ?tal-? cuts." Commented Reisner:', 41~Ma- gruder) was trying to,, make. a joke about the. fact' that Mr. Liddy was . . - engaged in doing kinds of research activities." Afterwards,' Rels ner overheard enough' around the office to "infer" that Liddy -"was responsible. for some sort of secret activity or research." It would appear Magruder. must have had more knowl- edge than he has admitted., of Liddy's Watergate operation.' r 1973. United Feature Syndicate'; , THE WASHINGTON POST Saturday, April 14.1973 ties in Tibet..-The Khampa leader claimed he learned his English and was trained in guerrilla tactics in the United States. In past. years. Indian intelli- gence agents were used to par- achute American supplies to the Khampas' mountain biv. ouacs. The bright orange sup- ply parachutes were converted into shirts by the Khampas and quickly became a "Red Badge of Courage" in Tibetan refugee restaurants in. Khat- mandu. ' - But now the Tibetan refu. gees, when they gather In the restaurants for marijuana stew and cakes, are forloria' The American aid is (trying tip, and the Khampas have to depend on the penurious In. dian intelligence services for supplies. This has so weak ened them that the Nepal gov. ernment, branding them "bandits," has been able to move them from the border areas. Now when the tribes men feel war-like, they prey on peasants instead of Chinese soldiers. Thus has a faraway war flared up and died down, vir- tually unknown to the Ameri- can people, whose dollars sup, ported it and whose secret agents encouraged it. Approved For Release 2001/08/07 : CIA-RDP29-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 THE EVENING STAR and DAILY NMS Washington, D. C., Wednesday, April 11, 1973 Star?News staff Writer James R. Schlesinger, thei new director of Central Intel- ligence, is giving the military a stronger role in assessing, threats posed by other coun- tries, according to the Pentagon's top civilian intelli-t gence official. Albert C. Hall, assistant defense secretary for intelli- gence, acknowledged in a in-, t::rview yesterday that "some of the civilians up the river" (at the Central Intelligence Agency) are quite concerned by the new development. But Hall, u-ho was brought (into the Pei,iafon by Defense Secretary Melvin R. Laird r,wo Z? :go to strengthen) civil; 'trot over intelli- genrc s.s;ti he thinks what Schlesinger is doing "is really cjuitc sound." SC:iLFSINGER, who drew up :, for revamping the .._c community when ha wa'; at. the office of Man- agentrrt and Budget in 1971, lets p'?.ced two career sol- ;liers on personal staff.. Maj. Gen. Low Allen, a W,. A Pointer who holds a cloct is degree in physics and who has been active in Air u" orce nuclear and space pro- ,.;r-uns, became one of Sclilesin.,for's deputies "for tit; Intel?i;cncc community" on :,larch 1. He was nominat- ed yesterday for promotion to lieutenant general. Maj. Gen, Daniel G. Graham, a career. intelligence office who is now deputy director for estimates in the Defense Intelligence ,Agency, is scheduled to be-, come a deputy to Schlesinger May 1. While Schlesinger is report- edly embarking on a house cleaning to'cut about a 1,000 persons from the CIA payroll' of about 15,000, he' has given his stamp of approval - at least for the time being - to the military intelligence oper ation, Hall said. "I have told the DCI (Schlesinger) what we are-. doing, what our objectives. are, and how, we are going', about researching them in a broad sense -and he's en-; dorsed them," Hall said. rHE DIA, the key Pentagon intelligence office, underwent a house cleaning of its own beginning in 1970, when Lt. Gc:n. Donald V. Bennett be- came its director. The entire defense intelligence communi. ty has received a further sh king up under Hall. Over the years, there has been a tendency to downgrade the military estimate of the thrc at from other countries -- primarily the Stwiet Union -- and for the civilian analysis of the CIA to be predominant,. Hall said. "On the civilian side - up the river - they were more. inclined to regard the Soviet Union as a more peaceful ent-, THE WASHINGTON POSr Saturday, Apr it 7,1973 Bin gtoua Murry-Go-Roused ity than it actually is. Their tendency is to regard what they (the Soviets) do as a reaction to us," Hall said. .The military picture tends to make the Soviets look like the fierce guys, and that we've got to catch up, he said. "In analysis of the Soviet Union, one was too far on one side, the other too far on the 'other side. I don't want to overstate this, because it was not that bad a situation. But it' would be better if they both moved toward the middle," Hall said. V4';IILE the different inter- pretations seemed to provide j a bi )ad range of views, the oppe Ate was often the case, Hall said. Graham, in an arti- cle of the current issue of Army Magazine, ' said "plan iers of all services. `coordinating' an intelligence ,estinv to are quite capable of reducing it to lowest common' denominator, mush." The goal now, Hall said, is to recognize that "There real- .1y isn't. one estimate - that there are ranges of possibili- ties dri yen by certain circum- stances. "It it important to get the' ranges and the circumstances laid out," he said. Unfortunately, he added, many of those who receive the intelligence information would rather have a specific figure than a range" of choices.. l ' FL Burs FBI Water Jack Andersoit The Central Intelligence Agency has ordered Its agents not to talk to the Federal Bu- reau of Investigation about the explosive Watergate case Yet curiously, the CIA has cooperated fully with Sen. Frank Church, (1)-Idaho), who Is Investigating the cozy rela. tionship between the White House and ITT. A clandestine ICIA operative, William Bro,a was even granted permission to testify at the Senate hea. lngs. Early In the Watergate I a_1 however, the CIA balked at giving information to the, FBI. G-men approached CIA official.i and succeeded in interviewing one before the gag was Imposed. The CIA for- mally requested the FBI not to question CIA people, and orders were issued to John Rule, 'the Watergate case su- pervisor, to lay off. Some of the Watengate con- spirators worked with the CIA on the abortive Bay of Pigs in- vasion. James McCord, who headed the IV atergate break-in squad, spent more than 20 years in the CIA. Our sources say he met Richard Nixon, then; Vice President, during a CIA investigation ir:?.to the shooting tdown of- an A21, Force C-118(. lover Russia In 1959. .,Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 HALL ALSO STRESSED, throughout the interview, that he is seriously concerned about the nation's intelligence budget. Over the last three years, he said, the Pentagon's intelligence budget has been cut about a third. - - "We don't have all the' things covered at all that we'd like to have covered," he said. "When resources are limited, it is no easy way out of that situation." Hall refused to say how ,much Nixon spends on intelli- gence or how many people .are involved. He did say, however, that an estimate by Sen. William Proxmire, D- Wis., that the nation's annual intelligence bill is $6.2 billion is just plan wrong. PROXMIRE SAID yester- day his figures were "in the ballpark" and called on Schlesinger to make the in- telligence budget public. He said his estimates of manpower and budget are: CIA, 15,000 and $750 million; National Security Agency, 20,000 and $1 billion; Defense Intelligence Agency, 5,016 and $100 million; Army Intent-' gene, $8,500 and $775 rnidliozZ Navy Intelligence, W,000 and $775 million; Air Force Intelli- gence, 60,000 and $2.9 billion (including satellite launches and reconnaissance); Stato Department intelligence, 833 and $8 million. a~e. Interviews New York Times 9 April 1973 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 In' the Small Print, An Official Secrecy A FROSTBIIRG, Md.-We are tangled in angry and important disputes about Presidential and Congressional power, about spending and taxation, about social needs and governmental indif- ference, about the whole structure of our-Federal system and about the in- tegr,ty. pf our political process. And to those disputes we must now add a new one brought on by this Ad- ministration's latest attempt to stifle the flow of official information to the public. The attempt is hidden deep in a lengthy and complex legislative pro- posal (S.1400) introduced in the Con- gress as a revision of the Federal Criminal Code. Five sections of that proposal, taken together, would estab- lish in peacetime a system of Govern- .lent censorship that a democracy Could hardly tolerate in a time of war., The "official secrets act being pro- posed would punish Government offi- cials who disclosed almost any kind of defense and foreign policy Information, whether or not its disclosure would endanger national security. It would punish newsmen who re- ceived such Information.unless they promptly reported the disclosure and returned the material to a Government official, It would punish not only reporters but all responsible officials of their publications or broadcasting companies who participated in making the unau- thorized Information public. It would punish Government em- ployes who knew of a colleague's un- authorized disclosure and failed to re- port their co-worker's action. , The law's penalties-from three to seven 'years in jail, from $25,000 to $50,000 in fines--would be imposed on actions which are not now con- sidered crimes, which are, Instead, tho applauded work of investigative journalists. For Instance, part of the law would, snake any unauthorized disclosure of. what is called classified information a, crime. And the law would explicitly pre- vent officFals who disclosed such in- formation from defending their action by proving that the information was improperly classified. Well. What is classified information? According to the Administration pro- posal, It Is "any information, regard- less of its origin, which Is marked or designated pursuant to the provisions of a statute or executive order or a regulation or rule thereunder, an in- formation requiring a specific degree of protection' against unauthorized dis- closure for reasons of national se- curity." On its surface, that language sounds reasonable, it does what existing law -already does- by insuring secrecy of data about our defense codes, about our electronic surveillance techniques. Approved about military installations and weap- that it'tivaS trying to be neutral. But ts and i c secre ons, about our atom Jack Anderson revealed classified about plans and operations which information that proved that President might aid our enemies. All that in. Nixon had instructed Mr, Kissinger formation is already kept secret by and others to "tilt" toward Pakistan. laws which punish its disclosure with That information was being kept secret Intent to damage America and its se- to conceal a lie. eerily, India and Pakistan knew the truth. But this new law would go farther. Only Americans were being deceived. It would prohibit and penalize dis- closure of any classified ;information, >7 regardless of whether or not it dam- Similarly, a laboratory at M.I.T. pre- aged security. pared an assembly manual last Feb. Classified information, you should :ruary for a gyroscopic device used in know, is any document or record or missiles. Again the Air Force classified other material which any one of over the manual and put the following 20,000 Government officials might words on its front page: "Each section have decided-for reasons they need of this volume is in itself unclassified. never explain-should be kept secret. To protect the compilation of informa- It is any piece of paper marked top tion contained in the complete volme, secret, secret or confidential, because the complete volume Is confident.iai." someone, sometime, supposedly de- And then in 1969 it was disclosed cided that its disclosure could prej- udice the defense interests of the that someone in the Navy Department nation. was clipping newspaper articles that In practice, however; classified in- contained facts ,ghat were embarras- formation is material which some sing to the Navy, pasting those articles individual in the Government decides onto sheets' of paper and stamping the he does not want made public. He paper secret. It turned out that such could make that decision to hide in. a practice was common throughout competence. Many have. the Defense Department. He could be trying to conceal waste, if newspaper articles can be Many have. stamped secret as a matter-of course, He could even be attempting to' what else is systematically being hid. camouflage corrupt behavior and im- den from the public? Should this proper influence. Many have. . Administration proposal become law, He could simply be covering up you and I will never know the answer facts which might embarrass him or to that question. his bosses. Many have. The examples I have given should Classified information, is the 20 mil- indicate to you the folly of any blanket lion documents the Pentagon's -own prohibition against the disclosure of most experienced security officer has classified information, as Tong as our estimated to be in Defense Department system of classification is so erratic, files. Classified information is the 26- arbitrary and unmanageable. year backlog of foreign policy records Not only would the proposed law in the State Department archives, perpetuate the widespread abuses of And most of that information is secrecy I have listed, it would enforce- Improperly classified-not out of evil public ignorance by making criminals motives, but out of a mistaken inter- out of honest men and women who pretetion by conscientious employes put the public interest above bureau- of - what security actually requires; .critic secrecy. Indeed, the Administra- They do not limit the use of secrecy' tion's proposed secrecy law goes far stamps just to information which, be ond rotection of what might be p y would really affect our national de- legitimate secrets as determined by tense, if disclosed. They often use a workable classification system, them simply to keep material out of should one be developed.- the newspapers-to make it a little harder, perhaps, for a foreign nation Additionally, it would punish the to get the information,- whether the unauthorized disclosure of mforma? Information is defense-related or not. lion relating to the national defense . regardless of its origin" which Let me give you a few examples. relates, among other things, to "the Around 1960, a sign in front of a conduct of foreign relations affecting monkey cage in the National Zoo the national defense." That broad explained that the monkey on display definition could bar Intelligent public was a research animal who had scrutiny of America's most significant traveled into space in American foreign policy decisions. rockets But at the same time the . Pentagon was classifying all informa- - What could. the enactment of such tion that showed we were using a sweeping gag rule mean to the flow monkeys in space. ' of information to the public? The reason given for trying to keep For one thing, the proposed law the information secret was someone's would nccan that Robert Kennedy; concern that it might damage our reia- were he alivo and writing now, would tionships with India . where some risk prosecution for publishing in his religious sects worship monkeys. book, "Thirteen Days," the secret Another example deals with India. cable Nikita Khrushchev sent the Over a year ago :when' India and White House during the Cuba missile Pakistan were. at war' over the fade- crisis of. October, 1962, pendenco of Bangladesh, the Nixon It would mean that Seymour Hersh Administration insisted in public that of The Nair York' Times could not it was not Interfering in the conflict, write, as he did last year, about the For Release 2001/08/07 : CIA-RDP77Z40432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 still-classified Peers Report -- the Army's own investigation. of the My Lai massacre and the responsibility of Army officers for concealing the facts of that event. It would mean that knowledgeable and conscientious Government em- ployes could be brought to trial for telling newsmen about waste in de- fense contracts, or about fraud in the management of the.military P.X. sys. tem. It could mean denying the public the information necessary to under- stand how cost estimates In 47 weap- ons systems rose by over $2 billion between March 31 and June 30 last year. Thus, the Administration's official secrets act would create staggering penalties for disclosure of information even when the information is totally misclassificd or 'classified only to prevent public knowledge of waste, error, dishonesty or corruption. We already have the criminal sanc- itions Nye need against disclosure of true defense secrets. To expand the coverage of thoso penalties can only stifle the flow of important but not injurious information to the press and therefore to the public. .With the criminal peppalties already in the la'V And with thd, proven record of responsible behavior by the great majority of Government employes and -rut t~snicn; tlic o~y purpose-'Jciitffir further expansion of the secrecy laws would be the effort to silence dissent within the Government and hide in- 'competence and misbehavior. New penalities will not further deter espionage and spying. They will ,only harm those who want the public to know what the Goverrunent is doing. . . Nothing could be better designed to restrict the news you get to the pasteurized jargon of official press- releases than a law which would punish a newsman for receiving sen- sitive information unless he returned the material promptly to an authorized. official. Nothing could damage'the press more than a provision which would make a newsman an accomplice in. crime unless he revealed. the source of information disclosed to him. - The Administration proposal carries an' even greater danger in the power it would give to the officials who now determine what shall be secret and what shall be disclosed. Not only would they be able to' continue to make those decisions without regard to any real injury disclosure might cause, they would be. empowered to prosecute anyone , who defied their judgment. Their imposition of secrecry could not be reviewed in the courts. And a violation of their decision would be a crime involving not only Govern= ment employees but journalists as well. The, Justice Department proposal goes far beyond any laws we have had, even the emergency requirements of World Wars I and 11. No law now gives the Government such power to prosecute newsmen not only for re- vealing what they determine the public should know but just for possessing information the Government says they. should not have. Under this proposal, a reporter who catches the Government in a lie, who uncovers fraud, who unearths ex- amples of monumental waste could go to jail-even if he could show,-be. yond any question, that the Govern- ment had not right to keep the in- formation secret and that its release could not possibly harm national do 'fcnse. This law then would force journalists to rely on self-serving press releases manufactured by timid bureaucrats- or risk going to jail for uncovering the truth. It would force Government employes to spy on each other. in a manner fa- miliar in Communist or fascist states but abhorrent to our concept- of an. .open democracy, We have had enough of that abuse of secrecy in the attempts to hide the facts about our conduct in Vi'tnam from the American people. Official secrecy has even, been used to keep back vital facts about Government meat inspection programs or pesticide regulations or drug tests or import restrictions or rulings that interpret These orb' excerpts from a speech delivered April 1 by Senator Edmund S. Muskie, Democrat of. Maine, at Frostburg State Coilegr. Une 'a bbagton Merry-Go-Hound THE' WASHTNCTON POST Frfdoy, 4prt 6,197s By Jack Anderson, Minutes of a meeting be- tween Secretary of State Bill Rogers and industrial tycoons doing business in Chile quote the Secretary as repeatedly re-, assuring them "that the Nixon', administration was a business administration and Its mission was to protect business." Nevertheless. he refused to retaliate against Chile for ex- propriating American-owned businesses. It is clear front the minutes that he didn't want to oush President Salvador Al- lende into Soviet arms. V----fused Act ai Chile Rogers indicated, according to the minutes, "that he had talked with the Russian For.. eign Minister as to whether or not Moscow was going to fi- nance Chile as It had Cuba. The Russian denied any such Intention. Rogers went on to show grave concern of Rus- sian domination of Latin. America and its impact." The Oct. 22, 1971, meeting. was attended by representa ; tives of International Tele- phone and Telegraph, Ana- conda Copper, Ford Motor, Bank of America, First Na- tional City and Ralston Pu- rina. The minutes were kept by ITT. Most of the angry business- men wanted the U.S. govern. ment to bail them out by tak. lag action against Chile. Only the Ralston Purina representa- tive, whom the ITT minutes describe as a "dove," recom- mended "Ave not cut off ship- ments to Chile but should use private sources to impress Al- lende and his governnient to stay In the Western bloc." The most Rogers would do was consider an "informal em- bargo" and recommend "periodic meetings" on the problem. "The Secretary raised the question," the min- utes state, "of whether there should be an Informal em-, bargo on spare parts and ma- terials being shipped to Chile.; The consensus of the group' was quite mixed. Rogers rec- ommended that there be peri- odic meetings of the group to attempt to solidify a position." The ITT executives went away disgruntled over Rogers' attitude. Concludes the min-1 utes: "In summary, the en-1 tire meeting indicates that the Secretary is pretty much go-' lag along with the . soft. line, low-profile policy -for Latin America." Approved For Release 2001/08/07 CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R0001001400011-1 NEW YORK TIMES 19 April 1973 C.I.A. .Trained. Tibetans in. Colorado,..-New, t h ou ed for Chinese control, 4?w+;Al )?+TM New York TSmM i h h t r g rough t e appointment of a t , WASHINGTON, . Aprjl 18-' wYOMiNaA' NETS. military and administrative Th I t e Central n elligence comtte ,mie. Agency set up a secret base' off' During the mid-nineteen in the Colorado Rockies to train fifties, however, ' Mr. Wise Tibetan guerrillas in mountain Oemer wrote, Tibetan guerrillas begani warfare in the late nineteen- 4; insurgent' warfare`-against .the' < leadvitie o (fifties, when there was an up. ?a Chinese and officials of 'the] Grand Central Intelligence Agen rising against Chinese rule in Junction, , >4a "concluded that ?the. situation Tibet, a new hook discloses. offered an ideal opportunity" In the book, "The Politics' oft % for. covert United States aid.... .1 Lying," David Wise, the author, Y. In March, - 1959, the Dalai said that the agency began,, Lama was forced to flee over training Tibetan refugees re-1 NEW MEXICO ' ` . high. mountain passes to India) cruited in India in 1958 in a < o Des loo ` after a Chinese mortar attack deserted Wo ld W IIA r ar rmy on ,hi pl M Wie ` ,s' , "aace, .r.s base near Leadville, Colo, The ' Tho New York TlmesfAorlt 19,1912 ' 'asserted. Intelligence- officials operation continued into the later concluded, Mr. Wise early months of the Kennedy reportedly was in y Y wrote, that some of the goer-, Administration, he said. , Rockies 130 miles from rlllas who had been trained in A spokesman for the agency . city of Colorado Springs. like other areas largely popu- lated by ethnic minorities, now has the states of an autonomous region within China. "Would the nation's security have been endangered if the story of the Tibetan operation, had been disclosed in 1961?" the book asked. "In the wake of the Bay of Pigs, Kennedy ordered two separate investi-i gations of the C.I.A., and he. struggled to take tighter con trol over the agency's opera-{ 'lions by changing its top lead- ership." . " might have focused public at the Colorado Rockies had been, tention on a number of ;m. port. the Government's definition of gesteu, including , the basic + Open warfare broke out in question 'of whether tax money Mr. Wise, the former Wash- national security." ington bureau chief of The ' The two top news officials Tibet after the escape, Mr. Wise would . be used to ..,.finance reported, and thousands of clandestine intelligence oper- New York Herald Tribune and in Washington for' The Times Tibetans were killed, and ? the co-author of "The invisible in 1961, the bureau chief, sd , A second issue,. he 1Dalai Lama's government was Added, was whether the agency . Government," a 1964 --book James Reston,' and the news dissolved by 'the'Chinese; In- 'had a legal basis for operating' about the Central Intelligence editor, ? Wallace Carroll, said dia's, decision to, grant sane- ' a secret training base in the Agency, wrote that the Tibetan yesterday that they did not re- tuary to Abe Dalai Lama also United. States. . ?- training program Decen apparentlyi call 'the incident. ?Mr. Reston is; increased the pressure between ' Finally, Mr. Wise wrote, that ended abruptly in December, now .. a vice that nation and China, the took "disclosure might also have led 1961, six months after the Bay presidents raid. .. to a public ? examinatioh. of of Pigs fiasco and a few and columnist for The( Times,' such important questions' as days after its cover was almost and Mr. Carroll is editor ,and The secret training operation whether President Eisenhower blown in an airport near publisher of the Journal and was hardly a success' ,'Mr. Wise approved the Tibetan operation, wrote, because, the 'guerrilla Colorado Springs. Sentinel: In 'Winston-Salem, i.? whether President?Kennedywas Infiltrated int T'$et 'b th e o ' " Ironill it th cay, wase snow and the mountains - the very factors that led the C.I.A. to select Colorado for the train- ing base -- that almost caused the operation to surface," Mr. Wise wrote. ' A group of Tibetan trainees were' loaded aboard a bus at the Army camp for a 130-mile trip to a nearby airfield in Colorado Springs, where a, large . Air Force jet was waiting' to quietly fly them out of the country before dawn. "But coming down the moun- tain," Mr. Wise wrote, "the bus skidded off the road in the snow. As a result of the delay Caused by the occident, It was daylight when the Tibetans ar- rived at the field." Once, there, the book went on, overzealous military secur- ity officials herded the 'air- port's employes around at gun- point, but not until at least one of them saw the Tibetans board the jet. . Complaints to the local sheriff were made about the aware of it or approved it, and 114. C' C.I.A. were attempting to bar= Jack Raymond, who was de-' ass the Chinese, not whether' the four. "Watchdog' .the Tense correspondent' for The to free committees of the Congress had Times in 1961, said. yesterday, country;in 'the. long'run?it is had any knowledge of what was that "I do remember, at the time ,doubtful that they made very going on in Colorado.',' knowing about the' incident much difference. Since 1961 and I don't recall what pre- Communist China has tight- vented me from writing about NEW YORK TIMES t Mr. Raymond, who is now 7. April 1973 associated with the Aspen In- solute for Humanistic Studies . Ellsber in New York, added in a tele-+ g Judge Accepts Hayden, phone interview. "I'm inclined, As Expert on Diplomacy of U. Sol l to think that I didn't have ? S. enough information about it td write a story. I have no imme- diate ? recollection of bein thrown off the story by any body." In his book, Mr. Wise wrote that the issue caused some, "nerve-racking moments" at. the j Central Intelligence: Agency's new $46-million Tiead- quarters in Langley, Va., be-. cause the incident occurred a week after President Kennedy, announced the appointment of. John A. McCone as'the new Director of ? Central Intelli' Bence. Mr. McCune replaceri describing the bizarre 'encoun- resignation was accepted after, ter were published in Coloradoi the Bay of Pigs incident, Mr. Springs and Denver. But, Mr. Wise wrote. Wise wrote, the full implica-1 The dispute between Tibet. tons of the incident did not 1become public. , When a reporter for The New York Times subsequently began a routine inquiry, based on a brief news-agency dis- patch about the Incident, the book said, the office of Robert S. McNamara, who was then Secretary of Defense, tele- phoned the Washington Bureau of The Times and asked that. Dalai Lama,.government for the' {the story not be used because occupation". ccupation ',of Tibet, pledg-' lof "national security" reasons. ing not -to ? alter the existing The Times acquiesced, Mr. political system in Tibet or the Wise wrote, in line with the powers of the Dalai Lama. 1 e cal n ic I r e??spape? r?a`?t e n However, the agreement also ur. camel Ellsber -ti0( /07issC,1A-RD Approved For Release 200 and China began in the 13th century Mr. Wise wrote with , , China periodically claiming Tibet as part of her territory. 'Mainland China was taken over by 'Communist forces led by, Man Tse-tung in 1949, and in 1950 Chinese troops marched Into Tibet. By MARTIN ARNOLD ? SpecIa' to The New York Timm LOS ANGELES, April 6 -- He elicited that on one oc- Tom Hayden, the antiwar ac- casion when Mr.. Hayden had tivist, was accepted today by traveled to North Vietnam he the judge in the Pentagon pa- was accompanied by Herbert pers trial as an expert witness Aptheker, whom Mr. Nissen de- on the diplomacy of the United scribed as a "theorist of the States. United States Communist party Mr. Hayden, in his second at that time." day of testimony,, was asked by "He was a ? member of' the Leonard I. Weinglass, a defense Communist party at that time," attorney. If he had an opinion Mr. Hayden said. on whether disclosure of the to On one of Mr. Hayden's diplomatic volumes of the Pen- three trips to North Vietnam, tagon,papers could have affec- he told the jury under cross- ted the' peace negotiatons in examination, he stopped- in Paris between the United States Communist China for "three or and North Vietnam, four days," in the Soviet Union "There is absolutely no basis" for "two or three days" and in for Mr. Hayden to be considered Czechoslovakia for "two or an expert witness on diplomacy three days. the chief prosecutor, David R. Mr. Nissen then asked him Nissen, said. United States Dis- how well he knew the defend- trict Court Judge William Mat- ants, and Mr. Hayden told how thew Byrne Jr. overruled the ob Mr. Busso had lectured twice to jection, and Mr. Hayden re- his college classes. plied: He told of other occasions on "It could not have affected which he had met Mr. Russo the beginning or the, comple- and Dr. Ellsberg and other tion of negotiations." members of the "defense team" On cross-examination Mr. Nis and how he spent two months, sen set out to destroy the wit- since this trial started, sharing ness's creditibility and to show living quarters with Mr. Wein- that he was a biased witness glass. Mr. Weinglass was Mr. in behalf of the d fendants Hayden's attorney during the Chica o-Seven trial. .000'00140001-1 Approved NEW YORK TIMES 18 April 1973 !Ellsberg Tells Jury Of Secrecy Pledge By MARTIN ARNOLD Spelt! to The New York T1mee LOS ANGELES, April I7-Dr. Daniel Ellsberg said today un-! der cross-examination at they Pentagon papers trial that he, had signed a pledge to the' effect that he would not copy the documents: He also told the jury that no one had given him permission either to remove the papers from the Rand Corporation cir to copy them. Further, he testified, he signed any number of state- ments dealing with the security of "top secret" documents. At One point, David R. Nissen, the chief prosecutor, asked him if he had read portions of the Espionage Act referring to classified documents. Dr. Ells- berg answered that "to the best of my knowledge there is noth- ing in the Espionage Act about classified documents, so I couldn't have read them." . He was asked if anyone had given him permission to remove the documents in 1969 from the Rand Corporation in Santa Monica, where he was em- ployed, to a Los Angeles ad- vertising office, where he Xer- axcd them at night. , "No," he answered. "No one had given you per- mission to copy them?". ; Mr. Nissen asked. "That is correct," Dr. Ell;;- berg answered. The pledge not to copy tie documents had been disclosed bafn.?e, but this was the first time that it had been disclosed to the jury. Dr. Ellsberg said that the Xeroxing was done in about eight sessions, strating on Sept. 30, 1969, and going into No- vember. On some of those occasions, he said, he worked alone; on others he was helped by An- thony J. Russo Jr., his co-de- fendant. Lynda Sinay was then the owner of the small adver- tising agency, and she helped, he said. So, too, did his son, Robert, then nearly 14 years old, who helped out twice. Once his daughter, Mary, then nearly 11, was at the agency. He was asked whether Miss Sinay or Mr. Russo or his scn Robert had been given official access to the documents, and he answered, No. Nor, he said, had Vu Van Thai, a former South Vietnamese. Ambassador to the United States. Mr. Thai and Miss Sinay are co-conspire- tors but not co-defendants. Dr. Ellsberg told the jury that after each Xerox session he ei- ther returned the documents that evening to Rand or on the next working day. When he copied the papers on a Friday night, he sometimes kept them in his Malibu hone until the following Monday, ter said. The prosecutor also asked Dr., For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 NEW YORK TIMES` 8 April 1973 -Ellsberg Witness -Says He's Ousted By SEYMOUR'M. HERSH Spectd to The New York Times WASHINGTON,' April 7- Samuel A. Adams, the Central Intelligence Agency analyst who testified about military de- ceit at the Pentagon papers 'trial, said in an interview to- day that he has apparently been discharged. The agency denied it. Mr. Adams has been persis- tently seeking a formal inquiry into the military's alleged falsi- fication of estimates of Viet- strength of Vietcong and Cam- bodian communists. He was re- cently transferred to another office, in part because of his protests, and thus is no longer directly involved in Southeast Asia intelligence matters. In his appearance at the trial of Dr. Daniel Ellsberg and An- thony J. Russo Jr., Mr. Adams declared that there had been political pressures in the mili- tary to display the enemy as weaker than he actually was." He further charged that he had tong strength in late 1967. He;been lied to by Government of- declared that on March 19, a few days after his court appear- ance in Los Angeles-he was told by a superior that he had -been declared "excess" in his job and would be formally notified of his dismissal "in a couple of days." He has yet to- receive any such notification, Mr. Adams said, despite repeated requests to his superiors over the last two weeks. As of the close of work Friday he had heard nothing; he added. The intelligence agency is no win the midst of a 10 per cent staff cutback that was re- cently authorized by its new di- rector, James R. Schlesinger. Those employes with poor per- formancer rating are to be weeded out first, according to some officials. Mr. Adams, 39 years old, who is a direct descendant of the Adams family of colonial times, had served since the mid-nine- A spokesman for the agency said that Mr. Adams was "still on the deck here" and added, "Of course, he has not been ficials in an attempt to kee'_, him from testifying. The thrust of his testimony was that at least some of the highly classified documents in the Pentagon papers, initially published In June, 1971, by The New York Times, were based on inaccurate and perhaps de- liberately misleading informa- tion, thus negating their im- portance to enemy Intelligence officers. In his testimony, the c.LA. official also disclosed that he was involved in 1971 in a simi- lar dispute over the strength of the Cambodian Communist forces. As a result of his re- search, Mr. Adams said at the trial, the estimated number' of Communist troops in Cambodia was officially raised to about 50,000 from, about 10,000. A Dozen Reprimands ? limbo," he complained. "I keep asking for my written notifica- tion of dismissal but they won't answer my mail." "What I think happened," Mr. Adams said, "is that some people down at the lower level looked upon the recent staff cutback as an opportunity to finally get rid of me. They probably saw my Ellsberg' tes- timony as heightening the opportunity." Someone at higher levels ap- parently disagreed, Mr. Adams said, and the situation has yet to be resolved. - To resolve it, Mr. Adams be- gan a campaign' to get some official notification of his standing. Last week he wrote the deputy director of intelli- - gence, one of the top officials in the agency, a memorandum urging that he be formally told of his status within 24 hours. "If I have not heard from you by then," the memorandum said, "I will respectfully assume that the decision to declare me in excess is `final, and that I need wait no longer." When the deadline passed, he telephoned a reporter and ar- ranged for an Interview. They! had spoken two weeks earlier,' shortly after he testified In Los Angeles. Mr. Adams said then he was sure that any staff cut- backs in the agency would not affect him. "'They just wouldn't be so dumb as to do that to me now," he declared then. Mr. Adam's friends in the agency have repeatedly pro- fessed admiration for his integ- rity and his willingness to con- tradict official policy to ex- press his point of view. They also note, however, that Mr. In the interview, Mr. Adams professed admiration for the intelligence agency and the work it performs, although he acknowledged that he was per- sonally reprimanded or threat- ened with dismissal at least 12 times in his.10-year career. teen-sixties as one of the agen-I But now, he said, he wantsjAdams has not received a pro- Gies leading experts on the to end his career. 'Tm in motion in at least seven years. Ellsberg to read to the jury por- tions of the Rand security man- ual. The Government contends that because Dr. Ellsberg was given access to the Pentagon papers for his job at Rand- which had a contract with the Government-the violation - of the Rand security manual was, in fact, a violation of Govern- ment security regulations. The defense contends that Dr. Ellsberg and Mr. Russo at most, violated the Rand Corporation's regulations, which would have. called for dismissal but littler else. '! At the end of today's session,: the prosecutor said that he be-' lieved that he could completer his cross-examination in aboutl an hour tomerrow, and the de- fense said that it could com- glete its redirect of Dr. Ellsberg by the end of the day. The Government's rebuttal case would then start on Thurs- day morning. During the morning session, Dr. Ellsberg insisted that he had not decided to copy the Pentagon papers until the morning of Sept. 30, 1969, when .he called his co- defendant, Anthony J. Russo Jr., and asked him if he could find a Xerox machine on which to do the copying. That night Inventory of Papers It is the contention of the defense that one set - of the Pentagon papers was purposely kept out of the Rand "top secret" security system be- cause those papers were in fact the private papers of Defensg Departments officials, -and that Dr. Ellsberg and Harry Rowen. then Rand's president, were the only ones who had access to them.) In April, -1969, Dr. Ellsberg said he was notified, that the Rand security system was hav- ing an inventory of all its of- ficially logged "top secret" papers. He asked Mr. - Rowen what to do with the Pentagon papers that he had in his own "top secret" safe, he said, and Mr. Rowen told him to put them in the President's safe until the inventory was over. Two of Mr. Rowen's secre- taries were aware that he was transferring them to Mr. Row- en's safe, he said. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 they started the Xeroxing. He also testified that when he picked up courier passes in March and August of that year to transport, first 10 volumes of the papers and then eight volumes, to Rand's Santa Mon- ica office from Rand's Washing- ton office, he did so in good faith, agreeing not to copy the papers that he later did copy. His answers were designed to defeat the Government's con- spiracy charge against the de- fendants. ' Dr. Ellsberg and Mr. Russo are accused of six counts of espionage, six of theft and one count of conspiracy. Under cross-examination, Dr. Ellsberg told how he scurried about the corridors of the Rand Corporation in Santa Monica in April will some of the volumes in a supermarket shop- ping cart to keep them from being discovered by Rand's security officers. The papers were in yellow envelopes with red borders, he said. Mende in 1964 By Laurence Stern Washington Poet Staff Writer Major Intervention by the Central Intelligence Agency and the State Department helped to defeat Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 WASHINGTON POST 6 April 1973 U.S. Helped i i Socialist Salvador Allende in the 1964 election for. president of Chile, according to knowledgeable offi? cial sources. American corporate and governmental Involvement against Allende's successful candidacy in 1970 has been the controversial focus of a Senate Foreign Re- lations subcommittee investigation into the activities of U.S. multinational companies abroad. But the previously undisclosed scale of American support for Christian Democrat Eduardo Frei against Allende six years earlier] makes the events of 1970 seem "like a tea party,' according to one former { intelligence official deeply involved in the 1964 effort.. Up to $20 million in U.S. funds reportedly were in- .volved, and as many as 100 U.S. personnel. The story of the American campaign,! early In the Johnson administration, to prevent the first Marxist government from coming to power by constitutional ' means in the Western Hemisphere was pieced to-., gether from the accounts of officials who participated in the actions and policies of that period. Cold war theology lingered, and the shock of Fidel Castro's seizure of power in Cuba was still reverberat- ing In Washington. "No more Fidels" was the guide- post of American foreign,- by the agency. Then it. fl-; policy in Latin America un- nally surfaced, and it was' der the Alliance for Prog, impossible to continue serv- ress. Washington's romantic Ing on It. Nonetheless, what zest for political engage-' they were doing was conso- ment in the Third World nant with President Kenne- had not yet been dimmed dy's policies in the alliance' by the inconclusive agonies -political development." of the Vietnamese war. The foundation is still In "U.S. government inter- existence, although its CIA vention in Chile In 1964 was funding was terminated. It blatant and almost obscene," now is financed by AID ap- said one strategically placed propriations. intelligence officer at the Covert financing was ar- time. "We . were shipping ranged for a newspaper' people off right and left, friendly to the political in- mainly state Department' terests of Christian Demo-, but also CIA with all sorts , crat Frei. "The layout was, of covers." ? magnificent. The photo-' One 'of the key figures In graphs were superb. It was.. the 1964 intervention was a Madison Avenue product, Cord Meyer Jr., the redoubt- far above the standards e a able Cold War liberal. He . Chilean publications," re-. directed the CIA's covert' called another State Depart- programs to neutralize Com- munist influence in import- ant opinion-molding sectors such as trade unions, farmer and 'peasant organizations, student activists and, com- munication media. ? At least one, conduit for CIA money, the Interna. tional Development Founda- tion, was employed in the 1964 campaign to subsidize Chilean peasant organiza- tions, according to a former official who was responsible for monitoring assistance to Chile from the Agency for International Development. One former member of the IDF board, who quit when he discovered it was financed by the. CIA, said: ,"Some of us had suspected for a long time that the foundation was subsidized ment veteran of the cam- paign. One former high-ranking diplomat said CIA opera-, tions at the time were by- passing the ambassador's of- fice, despite the 1962 Ken nedy letter issued by the late President after the Bay,. of Pigs debacle in Cuba. The, letter designated ambassa- dors as the primary author- ity for all U.S. operations' within their countries. "I remember discovering' one operation within my last week of service in Chile that I.didn't know about. The boys in the back room told me it was 'deep cover' and I told them: 'You guys were supposed to tell me' everything: " the former diplomat reminisced. As the 1964 election cam- paign unfolded in Chile, the `American Intelligence and diplomatic establishments were divided from within over whether to support Frel or a more conservative ' candidate, Sen. Julio Duran. CIA's traditional line or- ganization, centered in the Western Hemisphere divi-, sion and working through 'the traditional station chief. .structure, favored Duran in., So did then Ambassa- dor Charles Cole and the bulk of top State Depart. 'ment opinion. The remain- ing Kennedy administration policymakers, on the other '.hand, leaned toward Frei and the "democratic left" coali- tion he represented. So, re portedly, did the CIA's Cord' .Meyer. "For a while, we were at war among ourselves on the question of who to support," ,recalled a participant in those events. Duran dropped from con= sideration when he :lost an important by-election to the Communists, and gradually the entire thrust of Amer-- can support went to Frei. "The State Department maintained a facade of neu- trality, and proclaimed it from time to time," accord- ing to one source who 'played an Important Wash- ington role in inter-Ameri- .can policy at the time of the, election. "Individual officers - an. economic counselor or a political counselor - would .look for opportunities. And where It was a question of passing money, forming a newspaper or community de- velopment program, the op- erational people would do the work. "AID found itself sud- denly overstaffed, looking around for peasant groups or projects for slum dwell- ers," he recalled. "Once you established a policy of build- ;ang support among peasant -groups, government workers 'and trade unions, the strate- ,gies fell into place." . A former U.S. ambassador to Chile has privately esti- mated that the far-flung covert program in Frei's be- half cost about $20 million. In contrast, the figure that emerged in Senate hearings as the amount ITT was will- ing to spend in 1970 to de- feat Allende was $1 million. The number of "special 'personnel" dispatched at various stages of the cam- paign to Chile from Wash- ington and other posts was calculated by one key Latin ? American policy maker at the time as being in the .,range of 100. AID funds alone were sub. stantially increased for the iyear of the crucial election.' The first program loan in Latin America, a $40 million general economic develop- ment grant, was approved to buoy the Chilean economy, as the election approached. "We did not want to have a condition of vast unem- ployment as Chile was going into the election," recalled the former AID official. In addition to U.S. govern. ment asistance, Christian Democratic Party money was being funneled into Chile In Frei's behalf by the Ger- .man and Italian Christian Democratic parties. A m o n g the important channels were 'the German. Bishops Fund and the Aden- Suer Foundation, Which were managed by a Belgian Jesuit priest, Roger Vekemans, who has long been a controversial figure In Chile and other Latin American countries. Knowledgeable Americans believe that the European funds had no connection with the CIA programs. But Vekemans was a natural tar- get of criticism by Frei's opponents in the super- atmosphere of the time. Approved For Release 2001/08/07 : CIA-FOP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 no less than Vietnam-in a direction and pace of its own choosing. Few would now argue that these two ideas have the same hold on policy.: Cuba is not perceived as a menace (or? testing ground) of the old dimensions., This country's confidence In Its own. special talent for control ling change. elsewhere has diminished. This may help explain why, when the U.S. gov- ernment contemplated the election of a Chilean Marxist in 1970, some of the old political-strategic Juices may have flowed but finally what was done was. demonstrably short of what was needed to keep Allende from power. Did ITT sense the implications of the change even before the U.S government? In ' 1964, by Its owls ac. LOS ANGELES TIMES 8 April 1971 ' , Claim of CIA Influence in :Lib Movement Causes Furore' BY PATRICIA 31cCORJIACK NEW YORK (UPI)-' ;,-Betty Friedan, a founder of the modern-day wom- en's movement, is spread- ing word that the Central Intelligence Agency has infiltrated the women's movement. What the CIA sees, threatening about the, women's movement is, ,anybody's guess. The spy" agency can't be expected. to confirm or deny Mrs. Friedan's allegation. Good. ,spies don't.tell. The first report about the CIA and the women's movement was in a New York Times magazine arti- cle by Mrs. Friedan the. first part of March. It'was titled "Up From the Kitch- en Floor." It is safe to say the article started a civil' war within the movement.',, In particular, it made Ti-~ Grace Atkinson, theoreti; cian of the movement, see red. Miss Atkinson has an- nounced she is going to sue for $500,000 on ac- count of libel and slander.: After the Friedan article came out, Miss Atkinson and representatives of va- rious feminist groups, in-' eluding the National Women's Political Caucus, the New York chapter of the National Organization for Women, held a press conference. They scored the Friedan article, es;>e= cially the reference to the CIA being behind disrup- tive elements of the move-, ment. But that didn't stop Mrs.- Friedan. About 10 days la- ter, she showed up -at a wine and cheese meeting at the New York apart- ment of Muriel Fox, chair- man of the board of the National Organization for Women and an executive at a New York public rela- tions agency. The mother of the wom- en's movement again told of alleged infiltration by, the CIA-in'particular, the theory goes, the radical fe- minists and other. disrup- ters are a front behind which the CIA is operat- ing-in a' major effort to count, ITT offered money to the CIA for the CIA's political purposes in Chile. In 1970, ITT offered money to the CIA for its own economio, pun; poses. In the interval, the corporation perhaps thought, the world had been' made safe for precisely the sort of old- fashioned economic imperialism-eor? porations expecting, their government to help them make money-that had gone out of style in the decades of the cold war. The very premise of the Church sub-` committee's look at ITT-CIA was that there is no longer an overarching na- tional security reason not to look One cannot imagine, for instance, a Senate committee looking three years after' 1964, or even noWV, at what the CIA' may have been up to in Chile In 1964:' Nor could one imagine, in an earlier period, that the CIA would let its dl.' rector, plus it top hand for dirty tricks in Latin America, testify before a Sen- ate committee. I am familiar with the "revisionist" 'discredit the entire wom- en's movement. In an interview, Miss A t k i n s o n said," Betty, pushed the wrong button this time." And in a copy- righted article in Majority Report, a feminist newspa- per serving the women of New York, Miss Atkinson replies to Mrs. Friedan. The article is titled: Betty Friedan, the CIA and Me, and in it Miss Atkinson says: "Betty Friedan'sarticle, Up From the Kitchen Floor . . is so riddled with lies that it is impossi.; ble fora feminist to make any sense out of it . ." She said the Friedan ar- ticle boils down to this: "Betty Friedan is the lead- er of the women's move- ment. All those other dis- reputables-issues such as prostitution, men as the enemy, marriage, moth- erhood, class and class s t r u c tures, lesbianism, sex, rape-are ideas plant- ed by the CIA and promul-, gated by agents and dupes thereof." argument that American foreign pol- icy, not only before World War II, but, afterwards, was dominated essentially by considerations of commerce: win- ning raw materials, markets, invest- ment privileges, and the like. The ar- gument seems to be persuasive only to' people who are already socialists or Marxists. My own view is that "political" considerations of power, status and fear were the stuff of the cold war. Granted, the notion that the world may now again be safe or ripe for old-` fashioned economic imperialism Is it rather Inflated conclusion to draw from the relatively' slender findings of the Senate inquiry Into ITT. Nor can it possibly be what everybody had in mind when they hoped that super-' power relations would begin to mel-' low. It would seem to be, nonetheless,, one of the possibilities deserving fur- ther scrutiny as we all strain to see what lies on the far side of the cold war. .. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001=1 WASHINGTON POST 6 April 1973 Stephen S. Rosenfeld b in Chile:' i n of an' End" 'To -Cold War? Rather than just being ur..nerved by` the revelations of ITT's misadventures in Chile, maybe we ought to go on to'. hail the case as the best real proof, we've had ao far of the end of the cold war. , ? For while the CIA was evidently, 9 dabbling with ITT on the theory that a Marxist government in Chile might; pose some kind of political or strategic disadvantage to the United States, ITT 'saw the prospect of an Allende victory: .for what it was to ITT: a kick in the, wallet. :?'~ Faithful old cold-warhorse John Me-' Cone, the former CIA director who'd-' signed on as a director to ITT, mays have conceived of ITT's attempt to purchase a million dollars' worth of subversion from the CIA as an anti'". Communist act tracing its lineage -to the Berlin, Airlift. That's what he told the Senate .Foreign Relations multina- tional corporations subcommittee ins, vestigating the affair. But Harold Geneen, president of ITT, seems to have had no similar illu sions or divided loyalties. Not for him to make the claim that -what's bad for? ITT is bad for the country: he went to CIA as a businessman worried that Al- lende's election would hurt :'.ifs firm. , In 1964 the CIA had played its part' (still undetailed publicly) :,n a multi faceted American effort to help elect' Eduardo Frei. Frei's Chris;lan Demo- crats, who won, were then 'widely seen' as the "last best hope" for setting a model of change for all of Latin Amer" ica - an orderly reformist model con-; genial both to American political inter-" ests as then conceived and to Ameri- can economic interests' as still con- ceived. . In 1964, however, It seems fair to say In retrospect, the United States wax' still in the grip of two powerful ideas. whose hold was to weaken 'through the decade to come. The first idea was that Fidel Castro'--socialist; subversive, al-, lied to Moscow-was a live menace re-: quiring some response by Washington." The second was that it was within the capacities of the United States to steer events in a foreign country-In Chile Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 UIV14kof Thursday, April 5,1973 THE WASHINGTON POST est Cooperate to Heroin Highway .9 y to f By Dan Mor an g Narcotics and Dangerous Washington Post Foreign service Drugs and the U.S. Customs SOFIA-On New, Year's Service. Day this year, a Bulgarian At the start of 1973, Ameri customs officer stopped a' can authorities in Western. west-bound Mercedes 250S. Europe began giving narcot-' : automobile at the border its intelligence information, crossing near the Yugoslav' to Bulgaria, the first pro-.' town of Dimitrovgrad fora such Soviet acou with routine check. a- direct ct exchange of: 7 information had been estab Th d i r eck e presented a, lished. Nonaligned Yugosla West German passport, but' via has been getting such in- his name was more Greek-1 formation for some time. ,sounding than' German. The, A high Bulgarian official customs agent became sus- said of the collaboration;. picious? and searched the, ,Social systems don't make car. He found 51/2 kilograms any difference when it (12.1 'pounds) of morphine comes to the battle against base, the white powdery narcotics. Humanitarian as substance derived from, pects' transcend the ' diffex= opium that is refined into; ences between countries. heroin in Franrn nnA Wnet and European markets, cancer that has grown in coup for the Bulgarians. ? Bulgaria is crucial to the Most of the morphine base effort to curb the illicit drug sent through the overland traffic: It sits squarely at "heroin pipeline" from Tur-' the entrance of the main inexperienced b a n d?~ over- and Austria. Greece, Ro- worked customs agents in -manta and Hungary are, ,the possession of tourists, other, lesser drug transit, Turkish and Arab '.truck ; points. drivers, foreign workers,' ' In May, U.S. customs of-: 'Arab students and, occa- ficers are to begin teaching sionally, government offi i seminars at 'the Black Sea: cials, city of Varna. About 10 per The smugglers' route starts' cent of Bulgaria's customs at the Golden Horn in Istan-' service will receive the lee-' bul and often ends tip on the tures on detecting contra- autobahns of Austria or Ger- ' hand, particularly drugs.' many. It is a route with as, Similar seminars are to be many striking political vari-' held in Yugoslavia this sum- many , as physical ones, a mer. stretch of highway that leads The' United States alleged past the minarets of Islamic ' `ly has briefed local police and enforcement agencies mosques, then through cities.- on control techniques, in- decked with the red banners` 'eluding the use of eavesdrop-. of Communism and finally into the well-ordered cities of Western Europe, ping devices in surveillance. Bulgarian Communists are. ,said to he wary about cooper- In all those environments, ation with the Bureau of. smugglers operate with a sur- Narcotics because of that- prisingly free hand. In some! agency's undercover police 'areas, including those under work. Communist control, they have. The American interest in their own surveillance and intelligence networks, which operate completely outside the purview of the local se-' curity police. These routes from Istanbul to Munich have become an important target in the Nixon administration's program of cutting off drug supplies at or near the source. To help deal with the problem, the President increased the Euro- the transit problem is based on a widespread feeling that the ban on the cultivation of -opium poppies that Turkey: put into effect this year will, ,have only a minor impact for some time. American sources esti- cate cooperation efforts. . For instance, pro-Soviet Bulgaria and NATO-allied Turkey do not exchange nar= ,cotics intelligence. Turkey is the main source of mor- phine base for illegal than- nels and the major transit country for Lebanese hash- ish that passes through thel Balkans by the ton every year. So, American officials are pleased and surprised by the Bulgarian cooperation. One reason may be Bulgaria's concern over local hashish smoking. Unlike morphine base, the Middle East hash- ish is ready for use. Some of it circulates among young ,people in Sofia, and It is' also available at universities In Yugoslavia. American officials say that Bulgarian enforcement authorities are also angry at Western news articles that have described Bulgaria as a' "smugglers' paradise." Top Bulgarian officials hotly deny these charges, and they seem ready to co- 'operate. The United States already has provided focal officials with names of possible nar- ioties contact men in Bul. garia, primarily Arab stu-. dents living in Sofia. have as much as a three The teams in western l;urope .year reserve supply hidden professional smug- have also begun supplying away. Smme of these syndi filers have been aided by the Sofia with leads-about ship- cate operations are linked political divers of re- ments and identities of cour- i th 1i ft th ur a glonai rivalries of southeast: so w t o a a, a -0- iers. Bulgarian authorities - ern Approved For Release 2001/ /07 : CIA Rb 77~t,-O804VK000100140001-1 By Angela reobinsoh-The Washington PosS From the Golden Horn in Istanbul to the autobahns of West Germany, the drug smugglers' route winds say. How much of the reservel 'supply gets through will de-` spend largely on the skill of, the authorities in the pipe ,line countries. The Nixoi' administration's program for curtailing the drugs at -their source looks extremely; doubtful for now. Despite a spectacular sei- zure 'by the Bulgarians in 1971, the police and customs services of the area have been easily outwitted, and' few officials even believed. that there was a problem; until very recently. Bulgaria and Yugoslavia' have been successful at ap- prehending hashish trans porters, who tend to be ama- teurs such as West Euro- pean and American stu- -dents. Bulgaria confiscated' 'five. tons of hashish in 1971. The record of morphine base captures is much less impressive. Morphine base, is a smuggler's dream- odorless, compact and even impervious to water. Not a single kilogram was seized in Bulgaria or Yugoslavia in 1972, according to official sources In those ' countries. 'Yugoslavia has made only three seizures of base since. 1970, accounting for only Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 can also check whether sus- pects have a record of drug arrests in the West. Previ- ously, communication was so poor that some persons who were arrested for drug offenses here were thought by relatives in the West to be missing. The Bulgarian customs service is well-esteemed. It is headed by Lazar Bonev, a handsome, middle-aged man who is said to have excellent' political connections in the, Bulgarian government. American officials are con- vinced that Bonev's service' is doing the best it can against tremendous odds. , "The smugglers we arrest. In Germany tell us that if, you make it through Bul- garia, you're clean," said % one American source. . The fact that many do, make it through attests to. the baffling task of enforce-. ment officials, which sortie, consider virtually lmpossi bile. The volume of traffic in the heroin pipeline is' overwhelming and growing. In 1970, 658,937 motoists crossed the Bulgarian bor-+ der in 162,138 vehicles. In the summer, the number of vehicles averages 8,000 to 10',000 a day. Many are driven by vacationers going .to or coming from Black Sea resort areas, and strict eon- trols could hurt vital tourist revenues. Sources say' that Austria is a favorite place for switching contraband from cars with Arab or Turkish li- cense plates or drivers to ones with West i German drivers and plates. This avoids suspicion at the West German, border, where con- trols are said to be the , toughest in Europe. Arabs and Turks are almost auto- matically searched carefully, sources connected with drug traffic controls say. In 1972, 2,300 kilograms (5,060 pounds) of morphine base were confiscated in the Stuttgart area. In the West German state of Bavaria, 416 persons-including 216 -Americans - were arrested for selling or transporting drugs. Southern Germany is a prime market for all kinds of drugs because the'largest contingent of the 300,000 American troops stationed in Europe is there. Some Western officials es- timate that half the mor- phine base used in the her- oin sold in American cities uses the main truck route from Istanbul, to Munich. This means that the bulk of It passes through ? the Turkish-Bulgarian border point at Kapikule. Even in winter, traffic there is heavy and inspec. tions on both sides of the border are necessarily cur- sory. West-bound lanes are crowded with trucks car- rying cargo to Western Eu- rope and the east-bound ones with trucks piled high with' washing machines and refrigerators that belong to Turkish workers returning from a tour in West Ger- man's booming industry. Besides the truck traffic, there 'are vacationers, tour- ists and workers from Yugo- slavia, Greece, Turkey and the Middle East. Some feel that the only way to stop the opium and drugs they base ? transported. Penalties A bill would forbid farm- in Bulgaria and,Yugoslavia ers from opening poppy tend to be light, never more heads, an operation that re- than six years in prison. Nei- leases the opium gum that is ther country distinguishes refined .into morphine base between trarisportin hash-' Until, now peasants have' ish and morphine base. held ' back small quantities Truckers have not been a of the gum as a reserve very helpful source of in, against future crop failures.' formation. "Whenever they Yugoslav officials in Bel- are caught we hear the same :grade concede that small, story," complained is 'Yugo- amounts of the raw opium, About 5,000 acres are un-? der poppy cultivation in Ma- cedonia, but. only about 40' per cent of the poppy area, is directly farmed by peas-, grits, with the rest under the control of cooperatives. The only authorized buyer of Macedonian poppy heads. is the chemical firm Alkal- oid, which buys about 1,500 tons of the heads a year fort carry would be by closing earlier in the, trip and the the border to all traffic. drugs must have been Many of the trucks carry , planted on the vehicle the emblem "TIR"-Trans- then." ports Internationaux Routi- ers. The TIR marker is sup- If morphine rase stocks ' posed to facilitate interna- start to run low because of tional transport. In fact, the' higher border controls, nu- TIR sign is a virtual safe- thorities expect . smugglers conduct pass through inter- to become more subtle. Bul; national checkpoints. Trucks garian customs officials plan bearing the label are'sealed' to increase surveillance of Varna airport this summer and bonded at the point of departure, and most border to detect switching. Varna, a points forego inspections, port on the Black Sea, is al- leaving that for the point of most ideal for transfers be- idestination. cause it brings together hun- According to customs offi- dreds of tourists from West- cials, storage compartments of such vehicles can easily be entered without breaking the seal by removing the en- tire rear-door panel from its hinges. The 311 kilograms (684.2, pounds) seized in Bul- garia in 1971 were planted in a TIR-marked truck car- rying spirits-the truck was searched because the seal appeared to have been tampered with, . ' Truck drivers who engage In the smuggling are said to earn $100 to $130 per kilo (2.2 pounds) of morphine WASHINGTON POST 16 April 1973 medical purposes. One incentive to sell le- gally is the price paid to the' growers, which has been ris- ing rapidly. A. farmer can ern Europe and students , earn the equivalent of $75 and visitors from the Middle for heads harvested from a t East and,Turkey. American single acre. instructors are soon to brief Alkaloid officials assert! their Bulgarian counterparts' that'it would be impractical" techniques for searching vessels. Yugoslavia, the only pipe- line country where opium' poppies are' grown in quan- tity, has announced that it 'will tighten its' controls on domestic poppy cultivation to prevent the Republic of Macedonia from becoming a target for operators driven out of business in Turkey. lan."ua.oe ?Barrier? Warr Proved Tai llhig Essential i By Duskp l)oder Washington Pont Stall Writer At the height of the Viet- nam war, an American tele- vision newsman visited a South Vietnamese - village and interviewed its resi- dents. ' After initial ques- tions, the newsman, through his South Vietnamese inter- .preter, asked: "Do, they have item that made more ineit- plicable already unfathoma- ble reasons for U.S. Involve. ment In the war. Since then, however, the Interview has acquired a life of Its own. A copy of It was obtained by the U.S. govern- ment which uses it to dem- any' faith In their present I onstrate the crucial impor- ,form of government?" Lance of language training. The interpreter translated "We show It to all our Stu- Into Vietnamese: "Was the ' dents when they come in," crop good? Count up to 12." says Howard Sollenberger, While one villager counted director of the U.S. Foreign to 12, another said: "The ' Service Institute, the princi- crop was good. We live hap- pal language training center pily." for American diplomats. Linguistic barriers and failure of the State Depart? ment's ' bureaucracy to quickly respond to them are now viewed as principal rea= sons for many American miscalculations in the war. At the time of the 1068 Tet offensive, and with 500; p00 U.S. troops in Vietnam, most this, was Another news 28 The Interpreter translated into English: "We are con- fused. We do not under- stand." ' .Millions' of' americans who saw-'the entire inter- view on a network news pro- gram were completely una- ware of the interpreter's fraudulent translation. For for private peasants to col-, lect opium in Yugoslavia he-i cause laws limit how much; land they can own, because; controls are tight and be' i cause the labor needed to, extract large quantities of opium gum is much more expensive than in Turkey. "We have a different so- t cial system from Turkey," an official of Alkaloid said. 'the U.S. government had about 40 Vietnamese-speak- ing officers, most of them only with a crude under- standing of the language. None of the U.S. correspond- ents in Saigon at the time' spoke Vietnamese.' Not until 1967 was the Foreign Serv- ice Institute authorized to set up a Vietnam Training Center in Alexandria, Va., and to rush dozens of men through a 42-week course. The war and its twisted history seem to have had a lasting impact on the bu- reaucracy- It has slowly rec- ognized the need for lan- guage training as well as 'the importance of assessing future language needs for the Foreign Service. According to officials, the State Department last year came up'with its first, scien- tifically prepared projection of its language needs for the next five years. This five- year projection is to be up- dated every year. Fifteen years ago, accord Ing to Sollenberger, the de- partment did not know which of its officers pos- sessed linguistic abilities. Ambassador William O. Hall, director general of the Foreign Service, said most Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 embassies now have at least two officers who are "reasonably fluent" in the local language. With its "ongoing proc-. ess" of forecasting language requirements, Nall said, the department is able to main. tain sufficient numbers of trained diplomats. "The most desirables la{r- guages are ? those where there is some potential for advancement, rotation, move- ment," he said. "But if you -are talking about a lan guage used in' a limited! area, that is less attractive.' Many of the African lan= guages are a case in point." The department tries to get volunteers for such mar- ginal languages. "If there' are no volunteers we can, or- der someone to study a lan- guage," Hall said. I'm reluc- ta't to do that. In case of Vietnam, we did order some people to take up Vietnam ese." Just how the department's" personnel office makes su& decisions seems to he based on a complex formula that. takes into account a number of bureaucratic details such as functional 'specialities,- grades, rotation of positions and: other personnel mat- ters. ? The Foreign Service has dropped altogether its lan- 'gulige requirement (to speak at least one ' foreign language). This was done,, ,Sollenberger said, when "we WASHINGTON POST' r 0 A 41 1073 'realized we'd end up with a,bunch of language majors' who may be lacking other necessary qualifications," Last year, for example, . out of some 18,000 appli- cants the Foreign Service. selected 200. Only 50 of', those could meet the Ian guage requirements. But a Foreign Service offi-' cer can receive only one promotion until he learns, one foreign language. "The )ressure is on the young- FSO and he feels it," said Sollenberger. During the past fiscal' year, the Foreign Service In- stitute trained 7,429 persons' from more than 30 U.S. gov- ernment agencieJ. Of this. number only 1,126 were full- time institute students, in-;. eluding 370 Foreign Service 'officers. r ' The institute, with an op= 'erating budget of $6 million,. offers training in 60 lan-. guages to ?government per- sonnel: The Central Intelli-' gence Agency and National Security Agency ._ operate their own language training centers, however. When major languages' are in question, the Foreign .Service was able to main-: tain a sufficient number of trained officers. Despite more than two decades of hostility '!between Peking and Washington, the depart- ment "without fail" assigned several officers each year to study Chinese. "More people were, p 'Joseph-Alsop' oil: This is an invitation to join a voyage of discovery. It has been a strange voy- age, always enlightening, but always cruelly and bitterly enlightening. Those who wish to join had better' know, too, that the end of'the voyage will be unpleasant-although It will' tell volumes about the American ? fu= trained than we needed to man Taiwan and Hong Kong," Sollenberger said, "and we ended up with a' good ? number of persons speaking Chinese, up to the career minister level." It costs about $50,000 to train an officer to speak Chinese. If he is to acquire interpreting skills, he has to ,supplement" the 18-month .basic course with an addi- tional year of training at the' institute's special 'training center on Taiwan. The department has a suf-,' ficient' number of officers speaking such key languages' as Russian, Japanese and' .Arabic. The institute oper- ates advanced training cen- ters in Japan and Lebanon. 6-month Basic Study But beyond these, and other major world lan- guages, - the department's policy is based on the six- month training given to. each young officer in the .language of the country of his first post. Once they. leave the post, the officersare offered financial incen- tives to, maintain their lirr-- guistic abilities. . . Just how effective these' incentives are is not clear. But many senior officers contend that the department should be assessing its fu- ture needs at least 10 years in advance. Earlier this month, for ex ample, Under Secretary of State Kenneth. Rush made ,public overtures for estab-: lishment of relations with Albania. Yet there are no plans to offer Albanian Ian guage training despite the fact that only one U.S. diplo. mat speaks that language, according to personnel .offi cials. In the case of Mongolia , , 'She administration gave Mongolian language train- , 'ing to two officers back in ously contemplated estab- lishment of relations with Ulan Bator. Again this year, the administration was re-' ported to be seriously con- sidering such a move and two officers were dispatched' to England for a six month. Mongolian language train ing 'course. Both these areas are re- garded as marginal and offs. dials said that the depart. ment was simply unable "to stockpile very much, except in the critical areas." .Moreover, according to some officials, cuts in fed- .eral'support of various uni versity foreign area pro- .grams will eventually affect the government's ability to draw on pools of highly trained specialists. On the whole, however, the Foreign Service ' has been relying more and more on its own training program. "Our universities have not, dyne a very good job," said' Sollenberger. "Some.of our best candidates now 'corn e?,,... ++,,, n,.....- r---- to The Vulnerable Jugular . thod of fumble, muddle and last min- {rte improvisation. Now,: he added, "your policy has a clear, well thought out direction, and is bold and adroit, too. All that is very good." Why then, he was asked, did he so carefully say, "in one way." Your oil problem, he answered shortly. You Hence the start of the voyage will be mail the United States into an anti-Is- Hence to explain. Some weeks ago, the "raeli policy, was the natural reply. Not former Israeli ambassador, who was at all, he came back energetically., Is. 'rael can take care of herself "unless also 's one of the victory in two the chief Si minds inds behiWar,nd Bthe United States joins with other na- 'Israel's I the United home for good after a long expe- States to will destroy never d do. o. that." rience in Washington. Itzhak Rabin is 6 not merely a brave man, a good com-? ' "But why the oil problem, then?" panion and a good friend. He also has was the next question. - . one of the most far-thinking yet down- '? "Because of Its direct effects on to-earth strategic minds this city has 'you," he answered, "and because those known in many years. direct effects will'turn into indirect ef- So it was a matter of pride that the' f$cta on Israel and so many other na- house where these words are written tio'ns." was the last In Washington where he Begin with Israel and the other nae came to say goodbye and to have his lions, he was asked. Oh, he replied a final meal in America. In the talk at bit grimly, Israel is lucky. Israel has supper, the voyage in question really the will and wits tp defend! Israel. Be- began with a fairly idle question: "Now that it's all over, what Impres- aides China and one or two more, sions do you take home with you from there are not many nations friendly to your embassy here?" America that you can say so much Rabin answered that he had a won- about today. But neither Israel, nor derful time here, and in one way, was' 'China,, nor any of the other nations going home much encouraged. When niow in the circle of America's friends he came to Washington, he-had found. , y as over the city wholly pre-occupied ivith Viet- lean possibly achieve successful self-de- fensein a new kind of world in which looked for too long. No nation can re- and dealing with all the more im- t)pm , portant matters in the world by a me- America has ceased to be a rea main a great power, that has a wholly Approved For Release 2001/08/07 : CIA-RbP)72?Oft0ftJ8g14>1004u'hg to be cut 'p'ower. "Ceased to be a great power! My God, I thought you were talking about, .the oil problem," was the fairly horri- fied comment. ~?. It was a natural comment, too, for how do most of us, as yet, think about 'the oil problem? In terms of greater costs, of possible fuel shortages, of our current difficulties with the balance of payments, and also of the Arab politi- cal blackmail-which the departing ambassador had dismissed. That, surely, is an honest summary of the way we now think about the oil prob- lem. Perhaps sensing all this, Rabin went on, much more sternly and more'- earnestly: "You do not think enough about the oil problem. I have been lookir g Into it for months. It Is much worse than you. ;suppose--10 times worse. Your jugu-. lar, Western Europe's jugular, Japan's jugular, all run through, the Persian' Gulf nowadays. Yet you have no means to defend your jugular. "This Is- why your country must cease to be a great power, unless you can find means to solve this terrible problem which ever one h t Approved For Release 2001/08/07 : CIA-RDP77-00432R000100140001-1 by anyone with a willing knife. No na- tion can be a great power, either, that has an ever more worthless currency-- unless it is a totalitarian state like Hit- ler's Germany or the Soviet Union, which the'United States will never be. "Look into the facts that the future will force you to face. Look into what those facts will do to your dollar. Look into the new strategic situation those facts will do to your dollar.. you. Then you will see that I am right." The evening did not end there, but' with affectionate farewell;,. Yet the ,terrible words thus spoken, by so wise, and warm a friend of our country, could not be forgotten. So "looking into the facts" was the *voyage of die-, covery, to be described In further re-4, in this space. h 1973, Los Angeles Time& NEW YORK TIMES 8 April 1973 The:. 0 f do-Aa i ity. UIV New York Times 31 March 1973 1 "r Y eMY Voice By STACY V. JONES Special to The New York Times WASHINGTON, March 30-- The . Tecbnical Communica- tions Corporation, of Le::ing- ton, Klass., received a patent this week for a voice scram- hhcr that can be used for privacy in radio or telephone conversations, According to Patent 3,723,- 878, granted to Charles K... Miller, an engineer formerly 4nn the company staff, the system first inverts the dom- muniratlon and then scram- bles It with a complex code word. In inversion, high fre Scrambler on Market quencies are changed to low, and low frequen- Patents cics to high. At of the the receiver, a Week decoder uncram- bles the message. The company has sold more than 150 of the machines, called Model 205 Voice Privacy Devites, to law enforcement agencies and some foreign govern- ments. The scramblers are said to be much more. eco- nomical than the elaborate equipment used by Fede