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December 9, 2016
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January 23, 2001
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December 31, 1972
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Approved For Release 200/13/01sCult1iDP80-0160 Out of the T\ Ott Li 1.0 01 By Art Buckwald A lot of things were said in 1972 that people would just as soon forget. For example how would you have liked to have been . . . . The person who said to Sen. Edmund , Muskie during the primary campaign in New Hampshire, "Senator, why don't you go down to Manchester and give publisher William Loeb a piece of your mind?" . . . Or the one who asked Maurice Stalls, "Have you ever thought of opening a bank account in Mexico City?" . . . Or the campaign adviser who said to Sen. George McGovern, "George, if they ask you about Eagleton, just tell them you sup- ? port him 1,000 per cent." ... Or the person who called Jack Anderson . and said, "Have I got a story on Eagleton tor you!" And what about the aide who said to,Presi- dent Nixon, "Thieu is in the bag. He'll agree to anything we agree to in Paris." Lest we forget the poor fellow who said to John Mitchell, "I have this friend who used to V work for the CIA and he's been casing the Democratic National Headquarters and . . ." Or the man who called his friend in Cali- fornia early this year and asked, "How would you like to move to New York City and work for Life magazine?" Or the officer who said to Gen. Lavelle, "Don't worry, General, they're vow bombers and you can send them anywhere you want." And what about the State Department aide who said to Secretary of State William Rogers, . "I just gave Jimmy Hoffa a passport to go to Hanoi." Or the person who assured Jean Westwood, "The Democratic National Committee chair- manship is yours for the next four years." Or the person on Henry Kissinger's st,1::1' who told him, "Make it brief. Just tell the country peace is at hand." I wonder where the man is who advised 'Pony Boyle, then United Mine Workers' dent, ''Don't "Don't worry, Tony, even ii the federal government supervises the elections you're a shoo-in to win." Or the Interior aide who told the White house, "My advice is to let the Indians :Jay in the Bureau of Indian Affairs. What harm can they do?" Boas and STATINTL [?Capitol :Punishment Und And what ever happened to the man who said to Egypt's President Sadat, "Ask the Russians to leave. That will pressure them into giving us new weapons." Or the lawyer who told Clifford Irving, "They can't send you .to jail for faking an autobiography." Or the editor at Cosmopolitan who advised Helen Gurley Brown, "Forget it. Nobody will pay to see a photo of Burt Reynolds in the nude." And what about the man who said to Boris Spassky, "I think I've found Bobby Fischer's weakness." And while we're at it, I wonder what hap- pened to the man who advised Sammy Davis Jr., "Now when the President comes on the stage, throw your arms around him. He really loves that sort of thing." And what about .the person who said to Julie Nixon Eisenhower, "Well, if you feel that strongly about it, why don't you offer to give your life for the Thieu regime?" And finally, let's have a moment of silence for Martha Mitchell's former bodyguard who said to her, "Please, Mrs. Mitchell, just lie on your stomach. This needle won't hurt." Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 V1.1 N.J J..xla ? 2 7 Pri.o 1672 ?,, Approved For Release 2001/03/04: CIA-REPP80-1060 LsCi L renrilitra?MAIPPINM?110.11111?41?10.41.111?1 r."1 r ..,14,? -9/ WILLTAMSBUGR, Va. (AP) ? Is Camp Peary, a hush-hush Department of Defense instal- lation in York County, Va., ac- tually a training camp for the Central Intelligence Agency? The Virginia Gazette, a weekly newspaper published not far from the camp says it is, basing its claim princ'pally on an interview with an ex- CIA agent turned novelist. Two reporters for the Ga- zette contend in an article for the weekly that the CIA uses Peary to train teams of assas- sins, guerrillas, foreign merce- naries and special warfare agents, and to test exotic new weapons. Li They wrote that they were not permitted to enter the camp property and received crisp "no comments" when they posed questions to offi- cials there. ern't+ ? r ef,,J A Maggio the Source Nearly all their information apparently came from former CIA man Joe MacTio, who wrote a novel ? "Company,/ Man" -- which mentioned a "Camp Perry" at which he said tactical nuclear weapons were tested. The Gazette reported that Maggio said from his home in Coral Gables, Fla. that the "Camp Perry" in his novel in actuality was Virginia's Camp Peary, taken over by the De- partment of Defense 21 years ago. The newspaper said it was told by Maggio that he was at Camp Peary for three months in leaa, enrolled in a "special intelligence tradecraf course" given CIA recruits. It said Maggio said in the interview that the "training methArlS end techniques Cov- ered by the CIA" at Camp Peary included "assassination training, demolition training, parachute training, courses in wiretapping and intelligence- gathering, and experiments with special weapons for use in the field, including what Maggio labeled as 'mini- nuclear bombs." 'Disneyland of War' The Gazette quoted Maggio as saying, "I'm sure if you had a blue ribbon committee go in there, they'd find a whole new world ? a Disney- land of war." The Gazette quoted him as saying "the information con- tained on Camp Peary in the novel is factual." Among other weapons the Gazette quoted Maggio as say- ing are being tested at Camp Peary were a laser beam weapon used to cause bodily deterieration within 24 hours, experimental f or mulas of drugs such as LSD, and a vari- ety of chemical warfare mate- rials. "Some day, somewhere," the Gazette said it was told by Maggio in a taped telephone interview, "that base is going to have a catastrophe ? some Dr. Strangelove explosion that really is going to rock that area." Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 WASHINGTON POST Approved For Release 2001/03/1f40:1M-RQP80- j ? 4 ? ? e eti t, e clio Seen Bought by McCord By Bob Woodward and Carl Bernstein Washington Post Staff Writers ? .y spokesman for a Rockville no amount resembling the $3,- electronics firm said yesterday 500 allegedly, paid for the ra- that James IV. McCord Jr. dio receiver. cdentified himself as security ? The memo, from Nixon com- 'chief for President Nixon's re- mittee personnel director Rob- election committee and paid cit C. Odle to deputy cam- $3.500 in cash when he bought paign director Jeb S. Magni- tt radio receiver last May. 'der, lists 18 separate payments :..:The receiver allegedly was :to McCord, the highest being 'Used to pick up wiretapped 51,091.50 for security services. conversations at the ?Demo- Ralph Grimm, manager of Oats' Watergate headquarters. the Watkins-Johnson Corn-, :? John Gearing, of the wat- 'pany, said his company sells kins-Johnson Company, said :very few of the receivers be- McCord left a Committee for cause they are handmade, ?the. Re-Election of the Presil, very compact and extra sons!. dent business card with a ;tive for picking up weak sig- salesman when the receiver, !nais. ? wiliCh normally sells for " I Though not designed to pick $6,250, was purchased. 'up bugs or telephone wiretaps, The firm's records say that Grimm said that is "a possible ? McCord. one of -seven defend- use" for them. ants in the Watergate hugging He said the receivers are case scheduled for trial Jan. 8,i normally sold to "government paid only $3.500 because the 1 and those who work for gov- receiver was a floor model! ernment," though there is no used for sales demonstrations. ! prohibition on selling them to ? The indictment, returned' Sept. 15, charges that on May others. Alfred C. Baldwin III, the 10 McCord purchased a radio former FBI agent who has receiving system "capable of said he participated in the receiving intercepted wire and .1 Watergate bugging, appar- oral communications." ently made reference to the .1 Sources close to the Water-1 receiver in a copyrighted arti- gate investigation said the it dc in the Los Angeles Times. . ceiver mentioned in the indict-' Baldwin, who is expected to merit was the one purchased be the chief government wit- b'? McCord fromWatkins- nes in the Watergate trial, G 1 Johnson. earing said the FBI gave this description in Thei had taken copies of his corona- Times article of monitoring' ny's records relating to Mc- telephone conversations at the Cord's purchase. Democrats' headquarters: Gearing said McCord left "I would keep an eye on the the impression with the corn- little TV-type screen on the party sideman that the radio monitoring unit. A constant receiver was to he used by the line ran across the screen President's re-election commit- when the tapped phone was tee. not in use. When .someone :Records of campaign ex- !started using the phone, the penditures by the President's line would scatter and I would I re-election committee how- quickly put on the earphones." ever, show no payment to Mc- Baldwin described the re? Cord for such a purchase. Dis- (-river as sophisticated re- closure of all campaign ex- 1-aaivina, sat: which mccord penditures is required by law. 'later said was worth $15,000." An internal "confidential/ eyes only' memo of the Presi- dent's re-election committee dated two days after the June ,17 Watergate break-in pur- ports to list all the committee payments to McCord and lists STATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 .!;.FX vnpr #11y,4 Approved For Release 200034 ' 4;#'-'RDP80-01601 Paper Gives Court Its Watergate T By WALTER RUGABER An apparently full account of speciai to The New York Times the eavesdropping and wiretap- WASHINGTON, Dec. 21?The ping operations at Democratic Los Angeles Times, released headquarters, as described by from a pledge of confidentiality,,Mr. Baldwin in the interview, turned over in court today tape:N.vas subsequently published by recordings of its interview withjhe Los /wades Times. it central figure in the Water- i Mr. Baldwin and his attorneys gate bugging case. . !agreed in today's move to al- The action effectively ended!low the newspaper to make the contempt-of-court proceeding full recordings available to in-which the newspaper's Wash-Chief Judge John J. Sirica of ington bureau chief, John F.: the United States District Court Lawrence, was jailed briefly on::? here for a closed-door inspec- 'Tuesday after an initial refusal i lion of the contents. to surrender the recordings. I It was understood that the The Times had promised Al-! judge would edit out any re- fred C. Baldwin 3d, who was marks on the tapes by Mr. 'questioned last September Baldwin's attorneys or by the ablaut the break-in at the offices two reporters who conducted of the Democratic National the interview, Jack Nelson and Committee and related matters, Ronald J. Ostrow. that it would not divulge the: The tapes, which had been Illetaila without his apprwal. turned over by the reporters to their paper, had been sought' ktby attorneys for E. Howard Hunt Jr., - one of seven de- fendants in the forthcoming criminal trial. Mr. Baldwin is expected to be a major Government wa- istless, and the defense lawyers lhad argued successfully that :they were entitled to review, his statements for possible use, in any attacks on his credi- bility. Judge Sirica had rejected the newspaper's argument that to ?. force disclosure of the record- ings would inhibit its news. gathering operations and vio- late the First Amendment's free press guarantee. While the United States Court of Appeals for the Dis- trict of Columbia had allowed Mr. Lawrence to remain free, it issued an order late yester- day warning that if the case did not reach the Supreme Court by tomorrow he could be jailed again. No One Had Asked A member of the three-judge appeals court panel, liarold Leventhal, asked at a brief hearing yesterday whether any- one had asked Mr. Baldwin to release The Lns Angeles Times from the confidentiality agree- ment. No one had, but both Earl J. Silbert, the principal United State Approved For Release 2 lablkiSpiAd. 0. Pittman, M. Hu were thus prompte Mr. Silbert said tit< win "had no hesitancy in authorizing the release." In subsequent telegrams from Mr. Baldwin's attorneys, the newspaper was allowed to turn over the recordings "with the understanding that the voices . .. other than that of Mr. Baldwin will be .excised by the court." The lawyers, John V. Cassi- dento and Robert C. Mirtoa both of New Haven, said in the telegrams that The Los Angeles Times had been freed from the confidentiality agreement without pressure from anyone. Judge Sirica, whose jailing of Mr. Lawrence had been criticized in the press and in Congress, said that he had been "very sorry" to cite the news- paperman, and that he was "very happy to see that this matter has been settled." Reporters Not Satisfied The reporters were less than satisfied with the outcome. Mr. Nelson said that it was "a sad commentary" when a news source had to give up a privi- lege to keep a journalist out of jail. "It is still not a bell-ringing day for the First Amendment," Mr. Ostrow said. "The issue is still very much alive.'' The Reporters Committee for the Freedom of the Press said that while the two newsmen and, their bureau chief had escaped jail, the case nevertheless "rep- resents a further serious erosion" of the First Amend- ment. The committee said: "After all, two Federal courts did order The Los Aniaales Times bureau chief to jail, and the only reason he escaped further imprisonment was not by the protection of the First Amend- ment hut because a news source backed down on the con- fidentiality privilege." DP80-01601R000200190001-2 STATI NTL STATI NTL Approved For Release 2001/03/(14_,AgArRRM-01601R 20 DEO 1972 Time Chief Jailed in i-Wanter,die r), ?.0 Irtn71 I U I vt,AU conducted the interview, which was published on Oct. 5, told the court in 'sworn statements that this promise of confidentiality had helped them persuade Baldwin to be interviewed. Tapes Sought by Defense ? The tapes were requested by de- fense attorney 'William 0. Bittman, representing E. Howard Hunt ? Jr., selc.jv one of seven men indicted in the break-in and bugging of Democratic .Committee headquarters (in the - Watergate complex here) last June 17. Bittman said the tapes could im- p ea ch Baldwin, an important government witness, if his trial tes- timony differed from statements made previously. In the published interview, which ran several thousand words, Bald- . ? ? Lawrence, Now. Free on . Appeal, Refuses Judge's Order to Submit Data ? BY ROBERT L. JACKSON. ' limes Staff Writer WASHINGTON---A federal judge Tuesday jailed John F. Lawrence, The Times' Washington bureau chief, after Lawrence refused to sub- mit tapes and other material material relate Ing to an interview last October with a key government witness in the Watergate bugging .case. . About 21/2 hours later, the U.S. Court of Appeals freed Lawrence from a basement detention cell in , the federal courthouse until a spe- cial hearing on the case today. Lawrence, 38, was cited for civil contempt by Chief U.S. Dist. Judge John J. Silica for refusing to comply with the judge's subpoena, issued lag Thursday, commanding that the materials be produced Tuesday. . "I'm deeply shocked that in Amer- - Ica a professional journalist can be put behind bars even before there is a full hearing on an appeal," Law- rence said. after his release. 'Issue That Has to Be Fought' rThis is an issue that has to be fought. We seem to be in competi- tion With the free-trial idea, and the free-press side is not being given enough weight." Lawrence said that although he had been well-treated, "It was a very emotional experience. I asked if I could say goodby to my wife and ? they said, 'no.' It really dramatized that my liberty was being taken away." . . Attorneys for The Times argued that. certain .unpublished portions of 2he five-hour taped interview with ?Alfred C. Baldwin III involved con- fidential information that the news- paper, at Baldwin's request, had agreed to withhold. TimANVIZIAECOReiease 2001/03/04: CIA-RDP80-0 Nelson and Ronald 4. Ostrow. who ? win told of monitoring tapped phone conversa- tions ?from a listening post. across the street from the Watergate complex. ? Baldwin said also he had ' delivered sealed logs of some conversations, to an official of the sCommittee for the Reelection. of the President .but contended that he could not remem- ber the man's' name. Government attorneys, who have granted Bald- . win immunity from prosecution to testify as a government witness in the coming. Watergate trial on. Jan. 8, told Sirica they. had no objection to the sub- poena, which the judge had granted at the request of the defense. Earl J. Silbert, chief assistant U.S. attorney, said' the government had expressed its ? "strongest opposition". to Baldwin's - granting such ? ari inter- view. , Sirica, in denying a Times ? motiOn ea rlier Tuesday to quash the sub- poena, said the newspa- per's tapes could be useful to defense . attorneys, in testing the credibility of Baldwin as a -witness. He said ? that a jury. might want to compare Bald- win's trial testimony with all prey had 'made. Attorney Thnothy Dyk, arguing for the Times against the subpoena, said that confidential . informa- tion given to reporters was proiccted by the. First ? Arw,ndinent's ? guarantees - of freedom of speech and of the press. Such a ? "sweeping sub- poena," he said, could set a. dangerous precedent and harm gathering of infor- mation in the, public inter- est from government offi- cials as as from other news sources. Lawrence,' although not' involved in ? interviewing Baldwin, was named in Silica's subpoena ? as the n e wpsaper's representa- tive. The court was told that the Times, and not Nelson and Ostrow as indi- viduals, had possession of the Baldwin tapes and re- notes and materials. toid Silica he had custody of a manila crmtaining the ? snbpoenaed materials but that he would refuse to submit it on. constitutional ? . andsother legal grounds. .; Sirica then placed Law- rence in the custody of a . federal marshal to be "in- 'carcerated until such time as he purges himself of his contempt." Sirica denied a ..Times motion to stay exec- s ution of his .order pending appeal. Lawrence was the third. ? ' newsman this year, to be . jailed on the issue ? of pr oteconfidential. . sources or confidential data. , The others were Peter J.- . Bridge, a- New -Jersey re- porter who refused. to an-: swer grand jury questions that went beyond his story. on a housing scandal, and,. .?William T.? Farr, Times re- . porter who has refused to disclose which lawyer in the Charles :Manson case ? provided him ?w it h trial' statements in viola- tion of a court-imposed gag order. ,at the time, Farr. was a reporter f or th IRPiliktotitilli9 0 0 1 -2 Inc appeals court, today will consider whether . .continuc STATINTL NEF Approved For Release 2001/044 trq,OO(71 c71,111,A :UM ? 51.14,,,ESTATINT Dcwihipso-o160,1 By Brit Elam? WASHINGTON: Ike Kleinerrnan, a C.B.S. News producer, took a -camera crew through the South recently to develop material for a documentary on ? the problems of children in America. He hoped to arrange an interview with a -mother who could describe vividly how the welfare system, with its prohibitions against payments to families with , working fathers, has encouraged the breakup of homes. He finally found just such a woman. She . was a welfare, client who spoke eloquently from ? experience of the system's inequities. She agreed to be interviewed on camera, but only with her face averted and with absolute assurances she :would not be identified by name. She had been secretly harboring her husband in her home and feared this would be discovered if she spoke out publicly. Although promises to withhold names have traditionally been routine in journalism, Kleinerman called C.D.S. headquarters in New York to check. The matter was referred to the legal de- partment, where the judgment was swift. Kleiner- man was told not to give the requested. assurance. The interview. was canceled. C.B.S.'s lawyers were reacting to the Supreme Court's 5-to-4 decision last June 29, in the so-called Caldwell case, that the First Amendment gives journalists no right to conceal the identity of their ?sources of information from a grand :jury. The Court acted simultaneously in three cases of news- Men who had been subpoenaed to appear before ? grand juries tp expand upon information that was in their stories. Two of the reporters, Earl Caldwell of The New York Times and Paul Pappas of WTEV- 'TV in New Bedford, Mass., had gained access to .the inner workings of the Black Panther party. The other, Paul Branzburg of The Louisville Courier- Journal, had published an inside story on the drug trade which named no names. All three refused to identify their sources or to breach other confidences .which they felt had made their reports possible in the first place. Pappas and Branzburg were .ordered to testify by state courts and appealed to the Supreme Court. Caldwell was excused from testifying first by the Federal District Court-in San Francisco and subsequently by the Ninth Circuit Court of Appeals, which ruled that even his appear? ance behind the closed doors of a grand jury room 'would damage his credibility with his Black Panther sources. The Government appealed his case to the .Supreme Court. Speaking for the: majority, Justice Byron R. White wrote, "We are asked . . . to grant newsmen a testimonial privilege that other citizens do not enjoy. This we decline to do . ? . We cannot accept the argument that the public interest in possible future news about crime from undisclosed, unverified sources must.take precedence over the public ? interest in , prosecuting those crimes re- ported to the press by in- formants . . ." Stewart argued that the Court "invites state and Federal au- thorities to undermine the his- toric independence of the press by attempting to annex the journalistic profession as an investigative arm of Gov- ernment . . . when govern- mental officials possess an unchecked power to compel newsmen to disclose informa- tion received, in confidence, sources will clearly be de- terred from giving informa- tion, and reporters will clearly be deterred from publishing it because the uncertainty about the exercise of the power will lead to 'self-censorship.' " Justice Stewart's predic- tion, of course, fits precisely the circumstances of the can- celed C.D.S. interview. And the chilling effect of the deci- sion on the network does :not seem to be an isolated ex- ample. Fr instance, Paul Branzburg, The Louisville Courier-Journal reporter whose case' went to the Su- preme Court, was also sub- poenaed by a second :Ken- tucky grand jury in connec- tion with another story. At the height of the controversy, he learned that marijuana use had become widespread 'among well-to-do adults in One large Kentucky community. He gathered material for a story on it mainly through in- terviews with persons who used the drug. The Courier- Journal, understandably con- cerned that this might lead to conflict with still a third grand jury, decided- not to use it. ? Nicholas von Hoffman, ? the Washington Post 'columnist who has written often about radical political activity, says he has had a long-standing policy of trying to avoid be- ing present during any activ- ity the Government might want to investigate. "I always thought there was no way we , could resist subpoenas, , even before the Caldwell case," he said. "When they first started : talking , about the Mayday :demonstration at a Nationa Student Association conven- tion a couple of years ago," von Hoffman recalls, "I just got up and left." A well-known Washington freelance, whose work has ap- peared in this Magazine, fold how he abandoned the idea of doing a magazine article about a friend, who he had discovered, to his astonish- ment, was deeply involved in the soft-drug traffic. Because the Man had strong philosoph- ical, rather than financial, rea- sons for his activity, the writer thought his case would be interesting. His friend Imes eager for the public to hear his views and agreed to co- operate if he were not identi- fied. When the Court ruling came down, however, the writer changed his mind.. "I never even considered doing it after that," he said. In fact, the writer was so intimidated by the prospect of being hauled before a grand jury to identify his friend that he in- sisted his name not be used in this article. Although there is no indica- tion that the Government still wants the testimony it sought from Earl Caldwell, the long court battle has left him un- easy. "When the Government issued the subpoenas," he says, "they asked for more than just my testimony. They wanted documents, tapes and notes. Since then, I have de- stroyed other tapes and notes and papers that I might have been able to use for stories. In some cases, I did taped in- terviews Where I promised not to use the material until some future time. Now I've de- stroyed these kinds of things ?things that might have been invaluable to me." Caldwell thinks the decision will be especially hard on newsmen trying to cover the activities of disaffected blacks, who tend to be suspicious of the press. "We could never promise these people that our stories would get in the paper, or even that, if they did, they , would come out the way they attakstsrgteMe 2001/03/04: CIA-RDP80-01601R000200190001-2 , C 011 6: 1:1-11, Approved For Release 2001/03%/bAlRDP80-016&116:Nt42T00190001-2 13 DEC 1972 6':'51P4 ,n3 ? Ce -'&1:7;',;),-SZCZav 141,1004. hind seen in VilWaipacre szendal WASHINGTON ? A fake passport in the name of Edward Hamil- ton was reportedly found on Frank Sturgis when he was arrested during an alleged robbery and bugging of Democratic National Headquarters at the Watergate Office Building here June 17. The passport was re- portedly faked by the CIA foriormer White House consultant E. Howard Hunt Jr., who is under indictment in connection with the scandal. Hunt is a former CIA operative. Hunt was hired by Charles W. Colson, special counsel to Nixon and who also served on his re-election committee and now has tendered his resignation effective March 1. In addition, Colson was Nixon's labor liaison. The Teamsters Union has announced that it Will switch its lucrative legal business to the law firm Colson is expected to join. Another strange aspect of the Hunt-Sturgis link was brought to light with the death of Hunt's wife in the United Air Lines crash in Chicago last Friday. Her purse contained more than $10,000 in neatly arranged. bills. Police, reported that one of the bills bore a written inscription: "Good luck. FS" ? same initials as Sturgis'. The federal indictment charges that Hunt Was present at the Water- gate at the time of the bugging but left before the police arrived and arrested five others, including Sturgis. At the time, Hunt was in charge of security for the Republican National Committee. The Watergate trial is scheduled to open-next month. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 ApPravert FatoRtlease 2001/03/04: CIA-RDP801-11661M100200190001-2 TrapuNZ E ? 113,781 DEC 1 3 197a ? ? r PROBER CITES $10.585 IN AIR CRASH By Edmund J. Rooney and Mini!) j. O'Connor 5'.9 1972 Chicago Daily News N A tr-) (rz,"0 (7.7), er four persons were carrying that the $25,000 was part. of , Hunt carried bore inscriptions. electronic listening devices. $111,000 in donations to Presi-lOne said "Good luck. FS." In- c a m e r a s for photographing dent Nixon's campaign that vestigators said this apparently , CHICAGO, ILL. ,? An in- documents burglary equipment , stoo(, for Frank Sturgis, anoth- vestigator who helped convict and hand-held radios. The five were used to finance the WatetT cc of those arrested inside wite In eak-in. Both? Hunt and one of the Watergate bugging wore surgical gloves. defendants told the Chicago If n n t was a $1.00-a-day Daily News Wednesday that White House consultant until $10,585 found in a wrecked jet- shortly before seven persons Dardis said he. had .done were indicted Sept. 15 in the liner here may be part of some investigation of the $100 $109,000 missing in the break-in Watergate break-in. bills that were found in the case. He and another former White wrecked jetliner in Chicago. C h i e f Investigator Martin House consultant, G. Gorden Dardis said that at least 20 of Dardis of the Dade County Liddy, who also was indicted, the bills started with the prefix s t a t e ' s attorney's office in. were not arrested inside the B, which indicates they came Miami added that he believes Watergate. from the federal reserve bank the money came to Chicago vial Dardis played a key role in in New York City. , a transaction at a New York the investigation that led to the He also noted that two sets of City bank, conviction of Barker last month the New York bills were in se- "We were never able to on. charges of unlawfully nota- que.nce and that this led him to trace $109,000 of the Water- ming . a $25,000 Republican believe that Mrs. Hunt or who- gate money. It was all in $100 campaign check, lie received a ever gave her the money had bills and some, of those bills 00-day suspended jail term in a obtained the cash from a New found in Chicago could be bench trial. York bank before coming to part of it," said Dardis. D a d e County State Atty. Chicago. i c 1.1 a r d Gerstein contended Two of the $100 bills Mrs. The wi Hfe of E. Howard Hunt, a defendant in the Watergate i bugging break-in case in Wash- 1 i n g 1 o n , was carrying the t $10,585, including 100 bills of : .$100 denomination. : Mrs. Doroihy Hunt, 52, of I Potomac, Md., who was killed in last Friday's airliner crash, :was coming to Chicago to visit :a cousin, Harold A. Carlstead. Dardis played a key role in the Dade County investigation of another of the Watergate de- fendants, Bernatid Barker. who deposited $111.000 in the Repub- lic National Bank in Miami and then drew it out -- in $100 bills. Barker and four of the other defendants were arrested at 2:30 a.m, last dime 17 inside Democratic National Com- mittee headquarters in the Wa-1 tergate lintel in lA'allington. Barker had 53 bills of 8100 denomination in his pvsession . when arrested. Ile and the oth- 2.t---A?p?pirevecrFoF-R--41:0ase 2001/03/04: CIA-RDP80-01601R000200190001-2 L,mocratic National headquar; Barker formerly served with ers. the Central Intelligence Agency :1) WASIIINGTON PUT Approved For ReleasViDTC1Kb/OaPa519gbpso-o1 0 nal ell'''. Continuekevisions By Lou Cannon Wa,shington Post Staff Writer ; KEY. BISCAYNE,. Fla., 2?Richard Helms will --..'spon resign. as director of the Central intelligence Agency. He has been offer- ed a new job by President 'Nixon and is expected to .accept. , Helms' intentions became , known in Washington today while the President was an- nouncing here that he would retain his principal White 'House advisers but would ac- cept the resignation of special :counsel Charles W. Colson. Presidential press secretary ;?Ronald..L. Ziegler announced `. that No. 1 assistant IT. R. (Bob) Haldeman, domestic affairs as- !Sistant John D. Ehrlichman and foreign policy adviser -Henry A. Kissinger would stay ? on in-the second term. - Ziegler also announced the retention of eight other high- :ranking officials, including himself, and the anticipated resignations of counsellor Robert H. Finch, deputy coun- -:sel.Harry S. Dent and special' :assistant Robert J. Brown, the? highest-ranking black in the Nixon 'administration. Donald H. Rumsfeld direc- signment as the director of California with an eye on run- tor of the 'Cost of Living . CIA's covert or "black" opera- Council, will be given an tali- tions. ;fientified "major, new - President Johnson picked '.ment," Ziegler said. RAW ci him to head the agency in has been mentioned tr.... 1966 as a replacement for quently as .a likely choice lAdm. William F. Reborn Jr. 0 TM 3 . Mr. Nixon pledged Monday Washington has been high. at Camp David that he was go- newspaper columnist wrote a? ing to "change some of the common judgment in 1966: 'Players and some of the plays" "(Ile) fits none of the stereo- in an effort to prevent his ad- types of the spy thriller and ministration from "coasting downhill" in its second term. Most of the announcements during the 'week have been of administration holdovers, and live of James Bond." I Ziegler conceded that the ap-i While no information was pointments have not tanounted: available last night on a new to a "traditional shakeup." ? ? assignment for the 59-year-old Instead, Ziegler said, the; Helms, it was determined that various changes in assign-! he regards the President's' the innumerable spy films of recent years. Slender, soft-spo- RICHARD HELMS ken, modest in demeanor . . . STATINTL-F"' out of the cold - he is not even a distant rela-, ments will produce "more effi- cleney",. in the White House and "allow us to get the job' done better," The full list of holdovers an- that Helms might be replaced y James Schlesinger, who IS b flounced by Ziegler today in- presently chairman of the At- Kissinger, Ziegler, congres- eludes Haldeman, Ehrliehman, omic Energy Commission. sional liaison man William E. Schlesinger is highly regarded Timmons, special consultant by the White House and played an important role in evaluating and helping to re. organize the?government intel- ligence community after Mr. Nixon took office. The Washington Post re- ported on Nov. 25 that Colson, a controversial troubleshooter who served as liaison man to labor and ethnic groups dur- ing the ? election campaign, would he leaving the White . House to resume private legal ? , practice in Washington. He most likely will join a firm headed by his old partner, Charles H. Morin, who said that he and hiS,partners Would new offer as a promotion from' his present job. There was speculation, too; Leonard Garment, director of communications Herbert G-. Klein, counsel John W. Dean HT, personal secretary Rose Mary Woods and speechwri- ters Raymond K. Price Jr., Patrick J. Buchanan -Jr. and William Safire. . Ziegler also announced that Roy L. Ash; the newly ap- pointed director of the Office of Management and Budget, would be made an assistant to the President, a designation which means that. he will be. available to take on special as- signments in addition. to di? meting the budget office. Helms got into intelligence- "welcome him with open work in. 'World War II as i arms." young- naval officer assigned Ziegler said that Colson will to the Office of Strategic remain on the White House Services. He joined the CIA staff for at least - 60- days to when it was formed in 1947, help with transition to the see!:', and has remained there ever and term. . . ., since. He rose to the position - Finch, who said two weeks of deputy director after an as- ago that he was returning to ning for either the . governor- ship or U.S. Senate, Is to hold? A news conference in Washing ton Tuesday to discuss' his for- Mal plans. /Dent will return to his legal. practice in South Carolina and-, :replace George Romney, who ? Helms' reputation as a Brown to his business In'. --resigned early last week as. "pt . ofessional" in the intelli- North'Carolina, Ziegler said.,,,A Secretary of Housing and lir- gence community and in the ban Developpent. pproved FOORtrea?te20011/03104 CIA-RDP80-01601R000200190001-2 Approved For Release 2004AMMTOclitabP80-01601 3 DEC 1972 11:S CON STATI NTL STATI NTL FA By GARNETT D. HORNER Star?News Staff Writer ? -KEY BISCAYNE?. Fla.?President Nixon dis- closed yesterday that a dozen senior members of . his personal Staff at the White House will carry :on into his second term. Presidential assistants Henry A: Kissinger, (Bob) Haldeman and John D. Ehrlichman -and press secretary Ronald L. Ziegler are among ? the best-known names on the still-incomplete list to be retained in essentially their current posi- . tions. - ? ? ? Ziegler announced Nixon's decisions regard- ing the dozen he staffers even as it was learned authoritatively that what he called the "substan- tial" cut planned by. the President in the total personnel of his-executive office could approach ? 59 percent. ? , The press secretary told questioners: "I really don't want to lock the President or anyone in the White House to Specific percentage figures." Personnel Totals 1,600 ? Sources familiar with the second-term plan- 'ning still in process indicated the goal is to cut as nearly in half as possible the total, of more than 1,900 personnel in the "Executive Office of the President." That includes such elements as the 'Office of Management and Budget, the Council of Economic Advisers and so on, as well as the 500 or so in the White House office itself. Ziegler confirmed yesterday that four staff members whose departure has been widely an- ticipated will be leaving soon?Counsellor Robert H. Finch, special counsels Charles W. Colson and Harry S. Dent, and special assistant Robert. J. Brown, who is the highest ranking black on the -staff: ? ? Besides Kissinger, Haldeman, Ehrlichman and Ziegler these listed yesterday as staying on for the second term were: ? Herbert J. Klein, a long-time Nixon associate -''serving as director of communications for the Ex- . ecutive branch. William E. Timmons, assistant to the Presi- dent for congressional relations. Leonard Garment, special consultant to th? e President who is especially concerned with civil and human rights affairs. John W. Dean III, counsel to the President 'whose investigation satisfied Nixon that. none presently employed by the White House was in- :volved in the Watergate break-in. case. Approved For Release 2001/03/04 ? Rose Mary Woods, who has been personal secretary to Nixon since 1950.. ? Special assistants Raymond K. Price Jr., Patrick J. Buchanan and William L. Safire, who have made up Nixon's primary speech writing team but whose roles "may change somewhat,"1 according to Ziegler. Ehrliehman Role Changed . Kissinger, ,assistant to the President ,for na- tional security affairs whose role in Vietnam peace negotiations and in 'arranging the Peking - and Moscow summits brought, him much into the public eye, was getting his final instructions from Nixon for a new round of secret peace talks. in Paris Monday when his con- tinued retention as the Presi- dent's right-hand man in for ? cign policy. was announced. Haldeman, known. as the White House chief of staff, and Ehrlichm.an, Nixon's top do- mestic policy aide, have been ? working closely with the Presi- dent here this wee'kend as they have for weeks on plans for xestructuring the staff and de- vising ways to make the gov- ernment operate more effi- ciently. One step Nixon has decided on, White House officials said, is to split Ehrliehman's job, ? in effect to free him to devote more time to managing the? handling of major policy issues that cut across departmental and agency lines. . Ehdichman will continue to ? act as chairman of the Do- mestic Connell, but his duties ' as director of the council staff, overseeing day-to-day activ- ities, will be taken over 'by Kenneth R. Cole Jr? who will be promoted from deputy di- rector to director of the coun- cil.' New Rumsfeld Assignment Donald Rumsfeld, counsellor to the President and director of. the Cost of Living Council, "will be taking on a major new assignment" in Nixon's second term, Ziegler dis- CIALRDP80,01,601R00.0200190001-2._ . :ant inu dr '3 35krLY Approved For Release 2001a34O: gik-R ? By THEO WILSON - ?- Staff Correspondent of THE NEWS Los Angeles, Nov. 29?A former CIA agent, arrested during the burglary-bugging attempt at Democratic head- quarters at the Watergate complex in Washington also plotted to attack and "defame" Daniel Ellsberg at a public rally in Washington, defense attorneys at the Pentagon Papers trial here charged. . At a court hearing tomorrow, they will ask the trial judge to hold an evidentiary hearing to determine whether the former agent, ,t Bernard Barker, was working under govern- ment orders at so, to dismiss the time and if the conspiracy- espionage indictment s?. against Ells- berg and co-de- Bernard lendant An ? thony Russo Jr. ? The defense has also moved to dismiss the indictment "because of gross misconduct by the vice president of the United States" ?who made "hIgh17 prejudicial and inflammatorg co ments concern- ing the motives. ;,he guilt and the patriotism of the defendant." This was a reference to Spiro Agnew's remarks on a national television program, when he in- timated that he saw no differ- ence between the Watergate af- fair and the Pentagon Papers ? case. Ellsberg's chief attorney, Leo- nard Boudin, said in his papers that "the strong inference exists from the facts now available that the responsibility for the said conspiracy and prejudice rests with the government." New Jury Asked U.S. District Court judge Matt Byrne Jr. has scheduled argument tomorrow on a defense motion for a mistrial and for the swear- ing in of a new jury. The defens lawyers contend that while the trial was delayed pending litigation over a gov- ernment wiretap, the jurors could not avoid becoming prejudiced, since they were in recess during the political campaign. The law- yers said that the Vietnam war was an issue and the jurors had to become involved in the political. debate over it. They also noted that anew Jury; now could inClude persons in the 18-to-20-year-old group. When the present jury was sworn, this age group had not yet been in- cluded in federal panels. Opposing the motion for nils- trial and dismissal of the indict- ment, the government has con- tended that tho jurors were under orders during the recess not to. discuss or read about the case, and that selectioh of a new jury would create unnecessary delay and expense. Judge Byrne has called the 12 regular and six alternate jurors to his court on Friday, when he - is expected to question them about their ability to continue to serve. He has set Dec. 6 as the tenta- tive date for resuming the trial, with opening statements to the jury by Assistant U.S. Attorney David Nissen - STATINTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 ? A CHRISTIAN SCIENST.MONITOR pgfelliMr. Release 2001-1031041CCIA4DP80-016 By Robert P. Hey Staff correspondent of The Christian Science Monitor ? Five months after the attempted .bugging of the Democratic National Committee's headquarters in Washington, the American public remains baffled. Who ordered the bugging? How widespread is political es- pionage? And, more important: What is the likely impact of Watergate on Americans'. faith in their politiCal process? First of four articles. Washington 0 OUTWARD APPEARANCES IT WAS A typical lazy Saturday, spring's last. Down- ? town in Washington clouds of tourists swirled ound gleaming monuments. Out in suburbia home- ownera barbered postdandelion lawns. But for tourists and Washingtonians alike the news last June 17th would prove anything but typical. As the day wore on startling information filtered down to Americans slowly, like rain through a forest canopy: In the dead of night five men had been arrested inside Democratic national headquar- ters. They were carrying ? devices for wiretapping telephones, Several crisp $100 bills, and cameras. And they were wearing rubber gloves, which would leave no fingerprints. Precisely who had sent them, Americans in and out of Washington immediately wondered? What were they trying to find out? Where did their money come from? Finally ? what part, if any, did the Republican Party play in all this? It was, after all, an election year. In the five months since then the issue has waxed and waned. Days of accusatory headlines have alternated %Vith oft-limited denials and periods of quiescence. tharges of politics repeatedly have hurtled through the air; "Watergate" became a major issue in the McGov- ern presidential bid. Issue is rising again ? Now that the election is over, the -issue is on the ascendancy again in Washington. In the offing are: trial of seven Watergate bugging defendants, scheduled to begin Jan. 8; one or more congressional committee Investigations, also likely to begin in the near future. ' This time the issue walks hand-in-glove with far deeper questions of ethics'inpralitics?Dind of citizan?billiori3)e4 politica*Orgpved For Keiease zu STATI One of the most serious questions Is: Was Watergate an isolated incident, as Republicans maintain? Or was there a widespread Republican effort to conduct espionage against Democratic presidential candidates this year and sabotage their campaigns, as several publications have charged? These journalistic allegations were followed by 'a series of changes from individual Americans that efforts had been made to recruit them to conduct such sabotage. (Late last month White House press secretary Ronald L. Ziegler denounced the Washington Post, which has made many of the charges, for what he called vicious abuse of the journalistic process" in its allegations of widespread Republican sabotage against Democratic candidates.) But the Republican denials have not as yet covered the full range of accusations. And if there should be proven to be any .truth to charges of widespread campaign sabotage, it is thought here, government and its leaders will have suffered yet another blow to their credibility ? a blow they can ill afford. In Mid-November a Harris poll reported that public confidence in leaders of government continued at a low ebb, down significantly from only six years ago. Public confidence drops According to this poll only 28 percent of Americans questioned said they had a great deal of confidence in the U.S. Supreme Court, only 27 percent in the federal executive branch (which includes the presidency), and only 21 percent in the Congress. This was significantly lower than the support expressed for national leaders in a 1006 poll; this decline paralleled the drop in public confidence generally in private institutions, as measured by the same Harris poll. ? ? : CIA-RDP80-01601R000200190001-2 ? 12( EDF YORK aill4ES ? 13 Ncty 1972 STATINT , ,P.qp_proved For Release.20Q1103/04 : uIA-RDP 1 President s Counsel Accuses the as mg on os C.B.S.of `McCarthyian' By ROBERT H. PHELPS Spwiai to The tiew York Times .KENNEBUNKFORT, Me., Nov.. 12?Charles W. Colson, special counsel to President Nixon, ac- cused The 'Washington Post and the Columbia Broadcasting Sys- tem last night of "McCarthy- ism" ? in their reports of the bugging of the Democratic Na- 'tional Committee and allega- tions of Republican efforts to "sabotage" the Democratic Presidential primaries. In a rare public appearance, the key Nixon assistant told the annual convention of the New ,England Society of Newspaper !Editors at the Shawmut Inn ithat The Post and C.B.S. had been "unconscionable" in the iway that they had "printed, re- !printed and eventually reported .as a fact that which was indeed not a fact" regarding' the at- tempted bugging of the Demo- cratic; headquarters at the Watergate. Hotel in Washington ? and the alleged disruption of the Democratic primary cam- , I ? Snecifically, Mr. Colson cited a Post article reporting that H. R. Haldeman, President Nixon's top assistant, had had access to a "secret fund" used Ito disrupt the opposition. Mr.t Colson complained that The Post had repeated the charge without mentioning denials by Mr. Haldeman and by Hugh. Sloan, the former finance chair, man of the Nixon drive, who allegedly was the original source of the article. Mr. Colson, who played a major role in directing thel campaign to re-elect President Nixon, singled out Benjamin', Bradlee, the executive editorl of The Post, for his harshest! criticism. ' Describing Mr. Bradlee as the 'self-appointed leader of a "tiny fringe of arrogant elitists" in journalism, Mr. Colson added; "If Bradlee ever left the Georgetown cocktail set where he and his 6litist buddies dine on third-hand information, gos- sip and rumor, he would dis- cover the real America. lie' might learn that all truth andi knowledge does not emanate exclusively from The Post, The [New York] Times, and the net- works; and that all of the rest of the country isn't just sitting around waiting tb be told by these select few what they .are supposed to think." Mr. Colson also denounced C.B.S. Ap prelv6dupor tR commentator, for two programs ? on the Watergate case, "re- hashing all of the old charges, coming up with no new infor- mation and noting only a selec- tive few denials." Fifteen min- utes of the 22 minutes of the first program were "unlabeled editorial," Mr. Colson said. "Thus," he charged, "The Post and C.B.S. employed tactics similar to those attributed to their old archenemy of the nineteen-fifties [the late Sena- tor Joseph R. McCarthy], engag- ing in the identical kind of un- proven innuendo they found so shocking 20 years ago." Mr. Colson attributed Thel Post's handling of the Wateri gate story to the paper's de- sire to prop up the saggingt campaign of Senator. George McGovern. He suggested no motivation for C.B.S.'s cover- .age. The tragedy of The Past's handling of the Watergate, story, Mr. Colson concluded, was to "erode somewhat pub- lic confidence in the institu- tions of government; and it also eroded as well the confi- dence of a lot of fair-minded persons in the objective re- porting of The Washington Post." . . STATI NTL lease 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL Approved For Release.2001/03/04 : CIA-RDP80-01601R00 SAN FRAN(JSCO, CALv EX/W.1'1;7AI OV 6 iSie E- 204;749 EXAMINER 8.: CHRONICLE S * 640,004 Cad Rowan Errors in GOI WASHINGTON ? If tomorrow's ballot- ing Produces the Nixon landslide which some. pollsters expect, we may spend a lot of years asking why the President ran so scared that he permitted the trampling of historic principles and protections. , All incumbent Presidents have used their appointees.and other resources of gov- ernment to try to win reelection. They have fanned surrogates out on the campaign . trail, but almost always they used only those Cabinet members (the Attorney Gen- eral, e.g.) and assistants who were clearly -understood to be politicians-in-waiting. . BUT IT BODES future ill for the nation when the Secretary of State and the Secre- tary of Defense are pulled into naked politi- cal hucksterism. It injects a special mea- sure of political poison into the foreign poli- cy dialogue when a political campaign is festooned with the voice of a Secretary of . State who has otherwise hardly been heard : from for four years. The assumption is that Secretary of ? State William Rogers will now go . back to civilian pursuits. The FBI's directive to field stations to ? provide data that John Ehrlichman and other ? Nixon aides could use in the cam- paign is an even more serious matter, as Eludichman admits publicly. 1. I. Won't ask how, then, in the name of. sanity, an FBI struggling to regain the con- fidence and adulation of all the people - arailna.E.P - could make the colossal error of helping the political campaign of the incumbent Presi- dent, I know how. Ehrlichman and his asso- ciates in the White House are known to play rough. But the FBI will survive this misadven-. ture. Even though i.t may be pressured to ward new ,indiScretions if the same insensi-? five characters hold power for four more ,years, the FBI is going to move back to a posture where it espouses no social, eco- nomic or political ideology, and. it plays footsie with no political party. Perhaps the most ominous develop- ment of all is the extent to which 1972 -turned American politics into a sort of . CIA-vs.-the-KGB .operation ? no ideological comparisons intended. Now that we've had the Watergate bur- glary and bugging caper, the revelations that Donald Segretti was running a massive campaign to sabotage Democratic candi- dates, and overwhelming evidence tying this espionage, thievery and sabotage to the White House, you can wager that in future campaigns anything will go. ? / ? THE THIRST for power, suspicion, in- trigue, will combine to diminish the little respect that remains for rights of privacy in this society. - Before this nation pays the final price even a retired' Richard M. Nixon may ono day look back and ask: "Was ,winning worth all that?" ? Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 DAILY WORLD, Approved For Release 2001/03i0fiv9frpDP80-01601R0002001 Q11JJTL Accu65.0 tiApaz oF THE 137.5tAK-114 AT Movio. tart 14Pa1oz.c, PIN "AWAY; DEALT VATH 11.1g PrigA-AlliTASNI-rne itagto0ENce, AlL7Vg4lEN1; 131E PEONS Wi-to LIV5 DV 714ER Wog!". I, (likoggINO F-"R:42? W144D4 -rW 600P Wow II .CEITRAL poor KNow=. NTElv.omei VAA PF.ZOPIN6 ..":1\AsateyI i ITNow! Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 NEI YORK XIMES Approved For Release 200.11034414.q1k-RDP80-01601 R000 ? The dirty tricks Of Presidential politics. Everybody understands why the Presi- dent .doesn't agree to debate. George , McGovern, though most of them think ? he would do all right if he did. And they're all used to the deceptions of, campaign finances. But this campaign .has moved from Tammany Hall dirty tricks to guer- rilla warfare, espionage and sabotage, bugging and burglary, and while the / Democrats concede that they have run a poor campaign, and maybe even that .they deserve not to win, they resent and even hate the. C.I.A. tactics that have been used against them, and will probably carry their resentment into the next four years. It will be interesting to see how the President deals with this dual prob- lem in the last few days of the cam- paign. He is insisting that he will not sigh: an ambiguous peace with the Communists in Vietnam because, while this would help him in the election, it would create trouble later on. Look to the future, he says.- At.the same time, he is being asked to look to the future beyond 'the elec- ? tion at home, answer the charges of financial corruption, espionage and sabotage, and go on to an honorable .victory that will win the respect and cooperation of the Congress and the people in the coming years. The important thing now is that, if he is going to win, that. he should win, clean and fair, but while he is now. riding high, he is in trouble of winning both in Vietnam and in the , election under circumstances that will hound and defeat him in the next four, years. For the moment, he is following what he calls his "game plan," but this comparison between sports and politics. is not really very accurate. For he is playing to win in the elec- tion and in the Vietnam peace talks, ' but not regarding how he will live with the consequences. The polls tell us that he is still not very popular personally but that he is going to win by a landslide. They also tell us that the Democrats have outregistered the Republicans three to two, but that Senator McGovern may lose every state in the Union, and that .his only chance- of avoiding a shut-out lies with the people who knew Mr. Nixon best?in California and the District of Columbia. It is an extraordinary paradox. still, 'when it is all over, Mr. Nixon.. hag' 'to deal with the practical prob- lems, and will need some trust, if not affection, to deal with them. His prob- lem now is not whether he can win ? next week, bet whether he can win . in :such a way that he will be able to govern effectively in the next four Approved For Release 2001/03/04: ears, a titc3l.fii6ei hao.s tic; addrei ed 0"g000 IN mon Paradox ? By James Reston The two things that have preoccu- ? pied President Nixon most oi' his wak- ing hours for the last two years have been winning the war in Vietnam and winning ye-election to the Presidency. Both have been hard, ambiguous and agonizing problems, but the contrast between his handling of the war and his direction of the election campaign . , is startling. ? On Vietnam, he has argued, not for victory but for. a compromise that . would endure, not merely for a cease- fire,- but for practical arrangements between the contesting forces that - , would move from confrontation to ,l.negotiation and cooperation but finally ?to 'what he calls. "a generation of -.peace." In the election struggle with the ?Democrats, he has much the same problem. But while he has talked end- lessly about "peace with honor" and the future in Vietnam, he has said nothing about "victory with honor" in the election, and what may come after. While the President has been con- .siderate of the future in Vietnam, and ,Willing to compromise with the Com- munists, he has used every, trick in :the book, and quite 'a few that have never been in the' book, to defeat the Democrats in the election, without regard for the future when they may still be in control of the Congress. This is one of the mysteries of this election. The President has won but is so used to losing that he doesn't know it, and is now pressing hard for a landslide that he may win, but in the process so antagonize the Demo- cratic majority in the Congress that ;he cannot govern effectively in the .next.four years. On the whole, Washington is very . joletpt of the easy ethics and even STATI NTL 1-2 WATSWINaTON LOST Approved For Release 2001/03/042 titiA-IXDP80-01601R0 , . Capitol Punishment Small By Art Buchtimild . If. Richard Nixon wins the election nextweek, most of the Credit will go to Lu Doc Toy who heads the "Com- ... inunists For. Nixon" Committee in Hanoi. Lu Doc Toy who, until this election, always voted the straight Communist party ticket,- deeided to support Nixon this year because he said, "I'm sick and tired of having my kids bused along the Ho Chi Minh 'Frail." Having made the decision, Lu Doc Toy contacted the Committee for the Re-election of the President in Washington. which sent one of their top CIA men to . Hanoi to help him in the campaign. ? , Lit Doc Toy told the CIA man, "I need bumper ,stickers, buttons, posters and a secret fund to get the Communists For Nixon off the ground." - ? .? The CIA man said, "We've written off North Vietnam as far as electoral votes go, but you could help us ? tremendously in getting the President re-elected with a, ..small favor." ? "What can I do? Lu Doc asked. ... "Arrange a peace treaty with the U.S. .a week before, .the elections." "It's done," Lu Doc Toy said. "My cousin is a member -.,of the Politburo and he owes me a favor."' Lu Doc Toy went.to see his cousin Ton Son Not in his bomb shelter .the next day. During a 15-minute break ?. in the bombing he said, "Ton Son Not, as you know I am ? head of the Communists For Nixon and .I have a small 'favor to ask of you." ? - . "You have dishonored your ancesters, Lu Doe Toy," Ton Son Not said. "How can you support a man whose ?? party would bug the Watergate?" . . "It was a prank," Lu Dec Toy said. "Everyone does it during an election year. Besides Nixon knew nothing about it." , . "Thats 'what all the Communists For Nixon say. But . we know differently. Besides, how could you work for man who said he would stop the war in 1968?" . "Exactly," Lu Doc Toy said. "That's what I came to ,speak to you about Nixon wants to stop the war again,? .? only this time before the election." '"It's a trick," Ton Son Not said. "What does he want in exchange for it?" "Nothing we wouldn't have given him in 1968. It's the , ? same ? deal that was offered to him then." "But why now? I thought the U.S bombing was , Working." - ? "Who knows what goes on with those cockamamie Americans? But I'm giving it to you straight. If you 'people ? say - okay Nixon will send what's-his-name to pails to sign thc,.dcal." ,? STATI NTL - "Wait a inintie," Ton Son Not said, "If we agree 'to a peace settlement, that means we'll have four more years of Nixon." "Look, Ton Son Not," Lu Doc Toy said, "We hold the key to the American presidential election in our hands. We have to decide whether we want Nixon for President and a generation of peace, or whether we want the mis- guided, badly thought out, socialistic programs of George McGovern." - The bombing started again. "WHAT ABOUT THIEU? ,W1LL HE GO ALONG WITH IT?" Ton Son Not yelled. "DON'T WORRY ABOUT THIEU," Lu Doc Toy yelled back. "HE'LL DO ANYTHING NIXON ASKS HIM TO!" . 1972. Los Angeles Times Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 WASHNGTON STAR Approved For Release 2001/031/C0a CURDP80-0160 STATINTL nal f qa is in Ham By JEREMIAH O'LEARY Star?News Staff Writer MIAMI, Fla.?Watergate de- fendant Bernard L. Barker will go on trial here tomorrow on a Florida criminal charge stemming from his handling of a $25,000 Republican campaign contribution check two months before the burglary of Demo- cratic National Committee headquarters. The way was cleared for the trial to begin berore Dade County; Criminal Court Judge Paul Baker when defense at- torneys headed by Henry Rothblatt exhausted their at- tempts to obtain a dismissali of the charge or a delay in the trial. The trial will be the only public airing of any facet of the Watergate case before vot- ers go to the polls next Tues- day. The criminal trial of Bar- ker and six others indicted in the Watergate break-in will not take place ? until Jan. 8. Various Congressional com- mittees have been unable to get public hearings launched into the political espionage case before the national elec- tion. Prosecutor David Goodhart ? and ?Rothblatt appeared before Baker yesterday and the jurist denied a defense motion for dismissal of the charge. Roth- blatt then went 'before Miami Federal Court judge Peter Fay and withdrew an earlier motion for a temporary in- junction to restrain the state of Florida from going ahead with the trial of Barker tomor- row. Barker is charged with vio- lation of a Florida law which makes it a third-degree felony to misuse a notary public seal. Barker, who is a real estate man, a notary and a former operative with the CIA in anti-Castro Cuban movements, faces up to five years in prison if convicted. The case against Barker made by State Attorney Rich- ard E. Gerstein is that the Miami man attempted to cash a $25,000 check in a Florida bank last April by authenticat- ing with the notary seal the. endorsement of another. The cashier's check was made out to Kenneth Dahlberg, a key midwest fund-raiser for the committee for the Re-election of the President. Gerstein charges that Barker did not know Dahlberg and never saw him endorse the check. It has never been explained how the $25,000 check came { into Barker's possession. Bar- ker also cashed four other checks that has passed through CREP, to $89,000. These checks origi- niated in Texas, were reissued or "laundered" in Mexico City, and went to CREP head- quarters in Washington before ending up in the hands of the Watergate group leader. /The trial is expected to be of if short duration since Rothblatt has waived a jury trial. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 WASHINGTON POST Approved For Release 2001W/8./.: Mixed Bag of Sleuths As a reader who occasionally pursues a news article to the last paragraph, I am amazed that no government agency, no col- umnist, no editorial writer, apparently no citizen, seems to have read the first Post ar- ticle on the Watergate affair to the end. Did no one else note that two of the five "bur- . glars" caught there are longtime friends, as- sociates, and employees of Jack Anderson, and that Anderson went their ball and in- vited them to his home upon their release? Barker and Sturgis, it was noted casually in the last paragraph, are "soldiers of forttine," ? frequently employed by Jack Anderson. I am an admirer and regular reader of Anderson's column, but I cannot avoid the impression that some of his mate- rial is obtained by means other than. the "press release." Anderson has been strangely silent on the subject of the .affair, offering merely an infrequent comment on its scandalous nature.... I offer these. observations only to suggest :that, rather than a wholly. Republican or - wholly free-lance operation, the Watergate break-in may have been a mixed bag that in- cluded "investigators". of- diverse. ? hack-. grounds and interests. _ ? : RICHARD E. GRANT. . Alexandria.- . Approved For Release 2001/03/04 : CIA-RDP80-01601R000200190001-2 NEWSWEEK; STATINTL 30 OCT 1972 ,STATI1Ap_proved For Release 2001-4-01601 AP McGovernites' index card on Segretti The St ry Of a GOP Trickster Thegreat gummy fungus called the Watergate case refused to curl up ;and die. Day by day, new details ap- peared., confirming the existence of a well-financed, well-organized eighteen- month GOP campaign to defame and con- fuse the Democratic opposition through espionage, legal . and otherwise. Last week NEWSWEEK uncovered a new Re- publican operative?a Midwestern politi- cal sabotage agent who says he was recruited, coached, supplied and paid at least $2,000 by the GOP's amateurish spymaster, Donald H. Segretti. A tele- phone link was established between Se- gretti and the home and 'White House office of Dwight Chapin, appointments secretary to the President. If the Presi- dent had not been directly soiled by the case so far, his Administration and party certainly had been?and George McGov- ern was riding the issue hard (page 36) as his last best hope of giving Mr. Nixon a race by Election Day. From the White I louse last week came a new chorus of who-me piety: "If any- one had been involved in such activities, they would not long be at the White llouse," said press secretary Ron Ziegler, because espionage is "something we don't condone and won't tolerate." Up Penn- sylvania Avenue, however, at the offices of the Committee for the Re-election of the President, the strain was beginning to tell. To prevent further leaks to the press, documents were shredded, and staffers were put to work spot-tailing oth- er staffers ("We don't want them sleep- ing around," said personnel chief Robert Odle). Campaign manager Clark Mac- Gregor was trotted out CM White House orders to denounce The Washington Post, and readApproiledtFisi Release which he would field DO questions?t at Szihlik: $2,000 from a 'chipmunk' the Democrats were engaged in hanky- panky themselves. The strains of the Watergate affair had set off a fiery new round in the four-year-old running battle between the Administration and the press, as well as intense competition among the media to break the latest tidbit of revela- tion (page 76). All week long, fresh details came to light about .the manifold activities of the mercurial Segretti, who had gone into hiding once his name surfaced two weeks ago. Telephone records disclosed that at least 28 calls from Segretti's Los Angeles home?or charged to his toll card?were put through last spring to Dwight Chapin's home, or to the White House, or to the home or office of for- mer White House consultant E. Howard Hunt, who was one of the seven men indicted for the Watergate break-in. Boss: Chapin's name on the call list offered circumstantial support, at least, for the earlier report by a friend of Segretti's that Segretti had named Chapin as his White House contact. And political insiders found it nearly impossible not to look beyond affable Dwight Chapin to H.R. (Bob) Ilaldeman, the President's chief of staff, who has been Chapin's boss and tutor for ten years, first at the J. 'Walter Thompson advertising agency and now at the White House. "Dwight didn't do a thing without Haldeman's authority or approval," a former Nixon aide noted last week. Chapin, who had been a friend and classmate of Segretti's at the University of Southern California where they had played a front-line role in campus political wars. (following page), ducked reporters' questions with a ?'no comment," but the 'White House 2004/03104%,?tiff-Ri5PrteRi0 Ifsp to worry, one sta en said, so Haynie A Louisville Courler?Tournal 'Oh, you naughty little devils, you!' walking around trying not to worry. Whatever his connection with Chapin, Segretti clearly had a contact somewhere in the White Ifouse. Ile had jumped into big-time politics- in 1962, while still an undergraduate, working with Chapin and fellow USC man Ron Ziegler on Mr. Nix- on's unsuccessful gubernatorial campaign. Segretti spent a year in England after leaving USC, picked up a law degree at Berkeley and in 1968 entered the Army for three years, ending up in the Judge Advocate General's corps in Vietnam. Back, in the U.S. in February of 1971, while still in the service, he was invited by a White House official to lunch at the Golden Table, a restaurant just down he street from the State Department. A former CIA operative was also present: the purpose of the lunch was to check out Segretti for a possible role in the po- litical intelligence operation then being put together by Administration aides. The ex-CIA man seemed unimpressed, but Segretti was evidently hired anyway. For the last half of 1971 he waterbugged around the country?Portland, Ore., Al- buquerque, N.M., New York City, Man- chester, N.H., Knoxville, Tenn., Tampa, Fla., as well as Washington on several occasions. Early this year Segretti evidently turned up in the Middle West with a supply of funds and authority to hire agents. One of his top recruits, NEWS- WEEK'S Nicholas I forrock and Toni Joyce learned last week, was Charles Szihlik, 2-1, of Indianapolis, a former Young Re- publican leader and currently a state deputy GOP chairman. Szihlik told friends that Segretti, using the cover name Simmons, called Szihlik in early 3 P319,000kOrTleof Szihlik's Visny, accord- continued. 'he ever involved himself beyond that. candidate. ing to Szihlik, had been hired by Se- . . , 'I political ifkoliiiil The two met for breakfast at the how- oca. e iss uA6brciVid ittiiitR61#ap?Obi, Tatra* ,,P gretti to r died in a car crash earner tnis montn.) cienmerats, other Republicans were oper- ard Johnson motel in downtown Indian- a ting in more traditional but .no less de- apolis, where "Simmons"?"a short ,? mierate ways to spike another set of shrimpy guy with heavy glasses, who , rivals, George Wallace's American Party. looked like a chipmunk," Szihlik told Wallace, in early White House caleula- friends?asked if Szihlik would be inter- tions, was seen as a substantial threat to esfed Mr. Nixon, a drain of right-wing votes in projects such as disrupting po- ,at could throw a close state contest ocratic headquarters and getting station- litical rallies or "planting people in Dein- that to the Democrats. Accordingly, in south- cryCalifornia, from Democratic headquarters." Party has considerable appeal, LOS An- The object, Simmons said, "is to swing An- the convention to McGovern ... to liter- ? geles adman (and GOP functionary) ob ally destroy strong candidates like Mus- Rert Walters told NEWSWEEK'S Stephan kie." McGovern was thought to be the Lesher that he hired mercenaries to go weakest Democratic challenger for Mr. Nixon in the fall. Szihlik agreed "for the fun of it" and was . fitted out with cloak and dagger. Szihlik told friends that Simmons gave him two phone numbers where he could be reached, one in Los Angeles and the other in Alton, Ill., and a box number in Los Angeles as a mail drop. Simmons was never there to receive calls, Szihlik told friends, but he always got the word and called back. Simmons told his agent to recruit only close friends, and to main- tain a single contact rule?each man was to know only the man who hired him. door to door a year ago trying to persuade American Party members to switch regis- tration to either major party. Had they been able to reduce the American Party's registration to less than 11,000 (it was then 4-1,000), the party might have been dropped from the ballot. Then, after Wal- lace's shooting this year, his campaign director, Charles Snider, was invited to Washington by William I?'rance (a former Wallaceite now tied in with John Con- nally's Democrats for Nixon) and offered what Snider called "a rather responsible position in government" on the under- standing that he would abandon Wallace. Money was unlimited, Simmons said, and Snider later called an American Party leader named William Shearer and told him he could "write his own ticket" as a Republican?especially if his own par- ty decided not to name a Presidential he would cover all expenses with no vouchers- necessary. Simmons's plans were considerably more grandiose than anything his agents were able to deliver. Though it isn't known if he got his hoped-for disruption of rallies and discombobulation of cam- paign schedules, he did get a few piles of stationery and some secondhand dos- siers?covering everything from bank loans to sexual peccadilloes?on Indiana's Democratic convention delegates. Szihlik and his sub-agents distributed phony posters sent by Simmons ("A vote for Muskie is a vote for busing") in the In- diana, Illinois and Wisconsin primaries in an effort to sabotage Muskie. But the Midwestern project did not go well. Simmons complained to Szihlik that Vis- ny in Illinois was "bleeding him dry" with very small results. Szihlik himself began to feel doubtful about his role ("You re messing with the very political party structure of tins country") but he held on long enough to collect a $2,000 pay- off "for expenses" from Simmons in Chi- cago in April. Szihlik did not know "Sim- mons" as Segretti until newspaper photos appeared last week; he has confided to friends that he will testify if subpoenaed. GOP on Parade: Segretti apparently also dabbled with the notion of becoming a political infiltrator himself. A McGovern campaign worker in California disclosed last week that someone using Scgretti's name, address and phone number ap- peared at McGovern headquarters in Santa Monica three days before the June 6 primary and volunteered to join a bicycle parade for the senator. According to the campaign worker's notes, the Me- Governites called &Trod at his water- front home ? r' 1 ' 1,645( the two weeks before Election Day remained to be seen. A Louis Harris poll released last week found that 62 per cent of the voters dismiss the Watergate affair as "mostly politics" and that a 50-25 majori- ty - does not believe that "White House aides ordered the bugging." But the Harris poll was taken before the latest revelations of political sabotage and be- fore the Segretti-Chapin link was dis- closed. And last week some Republican campaigners were plainly running slightly scared. "It could cost Nixon California," groaned one anxious GOP man recently returned from the field, "and it could cost us the Northeast." Given the apparently enormous Nixon lead, it would seem to require a massive turnaround of public opinion for the espionage scandal to throw that much political weight. The Democrats hoped that perhaps the Watergate hunt might still bag bigger game. With the telephone connection established between Segretti and Chapin, it would not be impossible for the chain to jump one link higher to Haldeman. Belling the President would be something else again?though Mr. Nixon has already had to make at least one adjustment. A few months ago, an awed White House insider said, "There isn't anything that goes on in the White House that the President doesn't know about." That's one boast the GOP isn't making any more, THE WHITE HOUSE OLD-BOY NET Asthe Kennedy Administration bore the brand of Harvard, so the Nixon White house carries the unmistakable stamp of the University of Southern Cali- fornia. An extraordinary old-boy net links the campus in Los Angeles with the cur- rent staff at 1600 Pennsylvania Avenue. White House praetorians John D. Ehr- lichman and H.R. (Bob) Haldeman were USC classmates back in 1946. Presiden- tial press secretary Ron Ziegler and his advance man, Tim Elbourne, were fra- ternity brothers at USC's Sigma Chi chap- ter. Another of their classmates (1961) was Michael Guhin, who is now an aero- space adviser for the National Security Council. And the same old-school ties bind the President's personal appoint- ments secretary, Dwight Chapin, USC class of '63, Haldeman's assistant, Gordon Strachan, '63, and Donald II. Segretti, also '63?the man Federal agents have fingered as a political espionage agent for the GOP. Through Haldeman, both Chapin and Ziegler made their way to the J. Walter Thompson ad agency?and later to the White House. Chapin, Segretti, Guhin and Ziegler were all big men on campus. They were members of the campus service organi- zation called the Trojan Knights, among whose duties was guarding Tommy Tro- jan, the campus statue, before the big foot hal as* group called Trojans. for Representative him to canvass or distribute leaflets. On- .41A ?01601 R000200190001 -2 about a doz Pines t iereafter o 3 )NS Government; Guhin was its president, and Segretti its successful candidate for the student senate. Among TRG's covert activities: ripping down campaign post- ers of opposition candidates, stealing op- position leaflets, stuffing ballot boxes and packing the, student court so as to quash any complaints that were brought against them. But the opposition always seemed to do them one dirtier?and therein, per- haps; lay a lesson for the future. "We spent a lot of sleepless hours trying to keep the opposition from playing dirty tricks on us," says another Chapin class- mate, California lawyer Lawrence R. Young, who first reported the link be- tween Segretti and the White House. "We always got trounced. And maybe that was it. Maybe they learned that playing it straight doesn't win elections." the few times he was home, he usually /77 ciircAGo Approved For Release 2001/023/066TCfh2RDWIOXI 0 tirrav/21 ...." L..1..L By Arthur Siddon . WASHINGTON?When five men were arrested inside the Democratic National Committee headquarters here last June 17, Lawrence O'Brien, then national committee . chairman, immediately seized on the incident as a major politi- cal issue.' . But even O'Brien himself probably did not know at the time that he had stumbled on an incident that would de- velop links to two former cabinet offi- cers, top officials of President Nixon's ? reelection committee, and a host ? of White House aides. The- episode, which at first looked like a.bungled attempt to bug the Dem- ocratic headquarters, became known as the Watergate Caper, named after the posh apartment-hotel-office complex in which the committee had its offices. As the investigation into the matter proceeded, investigators were led into ? what appeared to be a well-planned end well-financed case of political espi- onage. O'Brien called it "the biggest politi- cal blunder of .Richard Nixon's ca- reer." . Despite allegations by O'Brien and Democratic Presidential candidate Sen. George McGovern that Nixon is person- ally responsible for a wide-ranging po- litical es-image and sabotage cam- paign, the questions of who was behind . it and why remain unanswered. To date, here is the way the Water- gate Caper has shaped up: June 17?At 2:30 a. in. a security guard in the Watergate found doors taped so they wouldn't lock and called police'. Five men wearing rubber surgi- cal gloves and carrying bugging and ? photographic equipment were surprised in ?Democratic committee offices and arrested. The men, also had walkie talkies and $5,300 in $100 bills. iThe five men later were identified ?as: James McCord, 53, a former agent ? of both the Federal Bureau of Investi- gation and the Central Intelligence Agency who was ? then - chief security man for the Committee for the Reelec- ? lion of the President and a. security consultant for the Republican National Committee. e Bernard L. Barker, 55, a Miami real estate man who was involved. with the 2 CIA in tAISOPOVerloPorke*SIS ,l lic is a Cuban-born American. L'Ill ccr, Eugenio R. Martinez, an employe of Barker's in Miami. Cuban-born, he foucht with Fidel Castro's guerrillas but fled Cuba when Castro took power. Fraele A. Sturgis, 37, a self-described soldier of fortune, who once served in Cuban army intelligence and oversaw gambling operations for Castro before fleeing Cuba. Vireilio R. Gonzales, a locksmith who arrived in the U. S. before the Castro revolution. Teo of the men were found to calry address hooks listing the name of E. Howard Hunt Jr.,.54. a former CIA em- ploye who had been a consultant to Charles W. Colson, White House special counsel. June 19?McCord is fired by both the Nixon reelection committee and the Re-- publican National Committee. Ronald Ziegler, White House press secretary, calls the episode a "third-rate burglary attempt." June 20?United States Attorney Har- old Titus announces a federal grand jury will investigate the case. June 21?O'Brien and the Democratic Party file 'a $1 million damage suit against the five defendants and the Committee for the Reelection of the President. The suit is later revised to ask for $3.2 million. June 24?Investigators say the $5.200 in $100 bills found on the defendants was withdrawn May 8 from Barker's bank account in Florida. They say it was part of SCI 000 deposited in. the account April 24 in four checks from a Mexican bank. June 25?O'Brien writes a letter to Nixon asking a special prosecutor be appointed. June 28?G. Gordan Liddy, 42, chief counsel for finances and contributions for Nixon's reelection committee, is fired for failure to cooperate with FBI agents investigating the case. A former FBI agent himself. Liddy had been member of the White House staff work- ing on an antimarijuana program be- fore joining the campaign committee. July 1?John Mitchell, former attor- ney general, resigns as chairman of the . Nixon campaign committee, citing his e'100\00131/04theetAIRDP80 STATINTL paign was deposited in Barker's Flori- da bank account. The check had been made out to Itienneth H. Dahlberg of Minneanolis, midwest finance chairman for the Nixon campaign. Dahlberg said the check represented a contritrition and that he had given the check to 'Maurice Stens, former secretary of commerce and now fi- nance chairman of the Nixon cam- paign. Aug. 2?It is learned Stens gave in- vesti a ators the following explanation concerning the check: Ile received the check from Dahlberg on April 11 and turned it over to Hugh W. Sloan Jr., campaign treasurer. Sloan reportedly gave the check to Lid- dy as finance counsel, and Liddy alleg- edly exchanged the check for S25,000 in cash. It also was learned Sloan re- signed from the committee in mid-July. Aug. 10?It is disclosed federal inves- tigators found the existence of a $250,000 special security fund in the Nixon campaign committee. Aug. 17--Clark MacGregor, who took' over as head of the campaign commit- tee when Mitchell resigned, says Liddy apparently spent campaign ? money without authorization. He claims no such money has been spent since he took over. Aug. 19?MacGregor says a commit- tee investigation of the break-in has absolved all top White House and com- mittee officials from involvement. Aug. 20?The General Accounting Of- fice says it found violations in the han- dling of $500,000 in campaign contribu- tions by the Nixon committee. It, said several contributions made before April 7 were not included in the committee's report.. Aug. 25?It is revealed that the $25,000 that appeared in Barker's Flori- da account came from Dwayne Au- dreas, a Minneapolis soybean oil tycoon who was one of Hubert Humphrey's key backers in the Democratic prima- ry. Marvin L. Rye, Minnesota commis- sioner of banks, said Andreas received a federal bank charter the week of -0 16048000200190001-2 Aug. i?InvestigilloTs learn a $25,000. check earmarked for the Nixon cam- NEW PEPUBLIC Approved For Release 200116= ink-RWPROMIT6.0 Corrup lion in The Campaign We haven't heard any mighty shout in this campaign to "throw the rascals out." Are we resigned to rascality as a way of life? Along with the White House staff, do we think chicanery is not worth digni- fying by indignation? Early this summer, a former Intelligence operative, a Democrat, casually suggested to a McGovern staff mem- ber that they set up an undercover anti-Nixon apparatus. The sugges- tion, which got nowhere, was made after E. Howard Hunt's name had l. surfaced in connection with the bugging of the Democratic national headquarters. As had Hunt, the proposer of anti-Nixon espionage had worked for the CIA in the days when the agency was up to its el- bows in domestic power struggles in foreign countries, secretly coun- tering Communist dirty tricks with some of its own. The CIA in- triguers did not regard themselves as corrupt, but as fighting for the right. If they got the right results and didn't get caught with their hand in the till, they felt they had done their duty well. What is unnerving about the series of domestic scandals over this past year and a half is that they so resemble the "fight-fire-with-fire" operations of the spy artists, and that the Republican campaign begins to look like ;'not just gutter politics," in James Reston's words, "but guerrilla war...." ? Start with the milk price boost of 1971. On March 12, the then sec- retary .of agriculture, Clifford Hardin, announced that to keep down inflation, the government would not allow an increase in milk prices that year. In the following two weeks, national dairy organizations gave $35,000 to reelect Republicans in 1972, sent a delegation to Meet .the President and the secretary of agriculture; on March 25, Secretary Hardin reversed himself, raising prices to a level that would bring at least $140 million in additional revenue to the milk industry. In July, the milk organizations gave another $125,000 to the Republicans, parceled out in checks of $2500 to 50 dummy fund-raising committees. A year later, in March 1972, a Senate hearing on Attorney General- 'designate Richard Kleindienst brought to light another coincidence. The international conglomerate ITT found itself in an awkward bind in the spring of 1971 because the Justice Department had decided? after months of threatening? to divorce ITT from the Hartford Fire Insurance Company. ITT spokesmen approached Attorney General John Mitchell, his assistant Kleindienst, antitrust prosecutor Richard :businessmen getting ? shifting that took place while negotiations were in .progress was remarkable. Businessmen and officials ' changed jobs as follows: 1) an assistant secretary of agriculture quit the government to become vice presi- dent of the grain firm that later had the largest sales to Russia; 2) he was replaced at USDA by a former exec- utive of another grain firm involved; 3) another USDA official left to become the Washington agent for yet another of the grain firms, 4) replacing a man who had quit the firm to work at USDA five months before. The vice president of a fourth grain firm quit a month be- fore that to work at the White House. Conflict of in- terest? An insulting question, according to the admin- istration. McLaren, White I-louse aide Peter Flanigan and other officials.. Whether or not they came to any discreet agreement we do not know; we do know the Justice Department rescihded its antitrust suit, the Republican convention organizers won a promise of a loan from - ITT? something between $100,000 and $600,000, de- 'pending on whom you believe. Possibly incriminating papers in the ITT Washington office were shredded. Illegal? Not proven. Suspicious? Certainly. This autumn the Agriculture Department (USDA) stepped back into the spotlight. The grain sale to Russia, engineered by USDA, brought sudden profits to the six largest grain shippers. The farmers them- selves had not been told that their crops were valuable this year; most were paid normal prices for their harveA?.i3f6Ska*inv...Kertaarkable_in licalthy agri- unaatho ? - orftelease 200 /03/04 : CIARDP616e81601R000200 hen we come to the wheeler-dealering of the Presi- dent's reelection committee. The friends of the Presi- dent contributed $10 million to his candidacy before April?; we'll never learn their names because the com- mittee has stood by the letter of the law, which requires only that contributions given after April 7 be revealed. An audit last month by the General Accounting Office (GAO) caught one unhappy man? Dwayne Andreas? who missed the deadline and now will be remembered as that "close friend of Hubert Humphrey" who wanted his $25,000 gift to the Republicans to remain anony- mous. The GAO also found that the reelection com- mittee had accepted $100,000 from a Mexican bank, a gift from some wealthy Texas Democrats who sent the money through Mexico to assure anonymity. A campaign with a $40 million budget?like the Republicans'? must be paid for; the President isn't supposed to use federal money for campaigning; that is why his public appearance in Philadelphia last week was nonpolitical. The readiest source of big money is big business. According to The Washington Post, about $700,000 of the Republicans' money was kept in a controlled by the campaign manager special to finance emergency spending and "security opera- tions" within the Committee to Reelect the President. The man who. headed the committee until, July 1 was John Mitchell; the man on the committee's payroll in charge of security was former CIA agent James McCord. McCord and four men hired by him or his bosses were arrested last June 17, carrying spying devices and crisp $100 bills provided by the committee, just after they had broken into Democratic national headquarters. They, along with two former White 1-louse aides, were indicted last month for conspiring to steal documents and bug the phones of the Democratic National Com- mittee. According to police, their mission was to install or _remove radio transmitters that would allow them, as spies for the Republicans, to eavesdrop on con- versations between Democratic campaign planners.- 190001-2 continued cash fund Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 - penses were paid from "a trust account in a lawyer's Initially the President tried to play down the sig- name . . . a high placed friend of the President," and .nificance of the incident as a "third-rate burglar that "Dwight Chapin was a person I reported to attempt." Two officials who may have known more in WaShington." A lawyer in Tennessee has said dropped from sight. John Mitchell quit as director of that when he was asked to jciin the undercover team, the committee and moved to New York. I Iugh Sloan, Segretti outlined for him a plan of attack in which they the committee treasurer who supposedly signed the Would issue false press releases to embarrass -Demo- money over to McCord and another man arrested in crats Muskie and Kennedy, sabotage rallies by inviting the break-in, quit about the same time. When asked people at the wrong time, and generally wreak havoc about the case on August 29, the President said, "no with Democratic schedules in any "legal" way pos- one in the White House staff, no one in this aciminis- sible. One of the victims of this campaign ?Senator tration presently employed, was involved in this very Edmund Muskie? said when he learned of the Post bizarre incident." Presently? Bizarre? - stories that they "suggest a political opposition which In the absence of an official explanation, reporters is ruthless and unprincipled." He released a detailed poked around and discovered that the espionage last list of sabotage incidents that plagued his campaign, June was not the first. According to a confession-by a including the forging of a letter, and asked for some man named Alfred Baldwin, the men caught in Demo- response from the President. cratic headquarters had been spying on the office for At least seven White House or reelection committee at least the three weeks Baldwin worked on the job. aides, now employed, have been named in connection Baldwin s'aid that he'd been asked by McCord to mon- with the scandal; none is talking, though most have itor bugged phone conversations, and that he, Baldwin, denied the accusations. Segretti can't be found. The hadn't been arrested because he was across the street seven men indicted for breaking into Democratic head- at the time, listening on a walkie-talkie. Other sources quarters are awaiting trial, but the judge has said it said that Baldwin sent transcripts of the conversations won't begin until November 15, the week after the he monitored to executives on the Committee to Re- , : election. Representative Wright Patman (I), Tex.), elect the President and the White House staff. chairman of the House Banking and Currency Com- New research by The Washington Post, The New York mittoo, tried to launch an inquiry, but was voted down Times and Time magazine adds plausibility to the 20-15. The FBI has concluded its investigation of the charge that the White House was more deeply mired break-in without stirring up enough evidence for more in this dirty business than suspected. Referring to indictments. The administration considers the case "sources in the FBI and Justice Department" the Post closed. ? said on October 10 that at least 50 agents had been If this were an Eric Ambler thriller, a fantasy about a employed by the Republicans in their "offensive secu- few who burgled, bugged, sabotaged, forged, and used rity" campaign against the Democrats. Eight people official position to favor business friends, we could have told the Post and Time magazine that a man relish it. It isn't. And it isn't the corruption of a few named Donald Segretti solicited their help for Nixon we need worry about; it is the apathetic response to in disrupting the campaigns of Democratic candidates, that corruption. For that signifies the corruption of the A former Treasury Department lawyer, Segretti is a country. friend of Nixon's appointment secretary, Dwight Chapin, who with Segretti graduated from the Univer- sity of Southern California in 1963. According to Time, the President's personal lawyer, Herbert Kalmbach, supplied Segretti with $35,000 from the reelection committee's funds. Another classmate of Segretti's at USC has said under oath that Segretti claimed his ex- Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 2 Approved For Release 2001/Osma!ifealtiffP80-01601 2 6 OCT 1972 . Q71, Err. a .1.- - 1,) ?S LAUIV Approved F On * Oh 17 i7 4'1(1 d-g zi fly Mary Russell. WAshington Post fit'nft Writer DROWNSVILLE, T e x a s, Oct. 25?Democratic vice pres- idential candidate Sargent Shriver today asked that the Federal Campaign Expendi- ture Act be amended to make "spying, subversion or sabo- tage" in a political campaign a crime. lie also asked for an amend- "George McGovern did not sit In some supply depot playing poker while the war was going on," in reference to President Nixon, who Shriver claims learned to play poker while he was on duty will" the Navy. Shriver was not as tough on Connally as he had been the day before in Chicago when ment to the Voting Rights Act he called him a "turncoat," to provide injunctive relief as but today be labelled Connally well as triple damages and a "plutocrat who belongs with costs for ? any candidate or campaign committee victim- ized by sabotage. He asked for issuance of a prompt presidential executive the millionaire Republicans". Shrivel, said he talked to former President Johnson. on the phone this morning. When asked why Johnson was not ? campaigning for the ticket, Shriver said, "Johnson's not order requiring "a full, report well enough to do it. He'd love to campaign for us but he only feels well in the morning. In the afternoon be doesn't feel very well and often returns to his bed. Otherwise I'm sure on any such activity in politi- cal campaigns this year." Shriver again struck at the use of former CIA agents by President Nixon's. re-election he'd be out on the hustings for committee, calling it a "fright- us." ? ening and deplorable develop. ment in our free system of gov- ernment. "No man who is trained by our country in the techniques of espionage can be permitted to feel that the same work can be performed to undermine vital iiistitutions of our so- ciety," he said. Shrivel. called for the legis- lation while campaigning in Texas, where he repeatedly charged that Republicans to- gether with former Texas Gov.' John Connally, who is heading Democrats for Nixon, are wag- ing a "smear campaign" against George McGovern on issues such as amnesty, wel- fare and abortion. Shriver told sin audience of about 2,000 at an outdoor rally at the Denton County court- house today that he was tired of "super patriots who were never in a battle" criticizing McGovern on his amnesty po- sition. lie claimed that McGovern's stand on amnesty was the same as President Nixon's, He i said McGovern would not I grant amnesty until the war is over, "the prisoners are br ouch I home axid 11 Le zat szcrwievasiew1444v4 : .CIA-RDP80-01601R000200190001-2 that President Nixon has not ? done," STATINTL IL, 4 Approved For Release 2001/03A04CIA1, uv80-016 0 !JI [C?i?-at? i A Y V By BA DRY RALB Star?Netts Stair Writer The judge in the Watergate break-in case has allawed the defense to subpoena from The Los Angeles Times any exist- ing records of an interview the newspaper published with a former employe of the Nixon re-election committee who , said he took part in the affair. The interview, which ap- peared on Oct. 5, quoted Alfred C. Baldwin III as say- ing that he monitored tele- phone calls to and from Demo- cratic National Committee headquarters. while in a motel across the street, and named some of the men indicted in the case as participants. Baldwin, who MS employed as a security officer for the committee, has stated in an affidavit filed with the court that he has to written or re- corded record of the inter- view, but Chief judge john J. Sirica of U.S. District Court allowed the defense to sub- poena any existing records from The Times. Times Editor William Thom- as, reached in Los Angeles, said he had only received pre- liminary word of Sirica's rul- ing and could not yet comment fully. However, he raid, "the reaction will be what it has been. As in the past, we'll con- tinue to oppose any effort to subpoena our source materi- als, and that goes for this case and any other case," Change of Venue The ? ruling came during a- day-long hearing on motions, during which Sirica denied de- fense motions for a change of venue, for dismissal of the in- dictments, and for a variety of other matters. Meanwhile, the U.S. Court of Appeals turned down an ap- peal of Sirica's ruling that the trial begin on Nov. 13. Al- though the defense said it is considering a further appeal, The latter five were arrested its arguments yesterday were inside Democratic National based of), tbe rornise th n ? z4. ?s% trial wcalp 'CAVOCILEPree-Re OARagg,0./Witg.- ? gl -RDP80-01601R000200190001-2 4,1 tr-a qtx (J, ii -J U\zz.?.,./* Defense attorneys argued long and hard for the change of venue, citing the extensive publicity the case has received in this area. They also argued that the predominately Dem- ocratic registration of Dis- trict Citizens would make it impossible for the seven de- fendants, who have been linked with the White House and the Committee for the Re-election of the President, to receive an impartial trial. Would. Do Wonders But Sirica denied the mo- tions, saying the real test- of whether the publicity has prejudiced the defendants will come when prospective jurors are polled prior to the trial. Henry B. Rothblatt, attorney for four of the defendants, again suggested that the feder- al court in San Juan, Puerto Rico, would be the ideal place for the trial. To this Sirica replied, "I don't intend to go out of town to try the case. I'll try it right here." Only the U.S. Court of Appeals, or his health ? he is suffering from an ailing hip ? could force him to change his mind, Sirica said. Rothblatt allowed as how the weather in San Juan would probably do wonders for the judge, but Sirica was un- moved. The defendants are E. How- ard Hunt Jr., former FBI and - CIA agent and White House consultant G. Gordon Liddy, who held similar positions; James W. McCord Jr., former head of security for the re- election committee and the Republican Naitonal Commit- tee; and Bernard L. Barker, Virgilio Gonzalez, Eugenio Martinez and Frank R. Stur- gis, all _active in anti-Castro circles in ;Olami. - Classified Material June 17, bringing the case to public attention for the first time. Sirica left for later a full hearing on whether articles taken from Hunt's former of- fice in the Old Executive Of- fice Building, and presumably used as evidence in the case, should be returned to him. The government said in court papers ?that John W. Dean HI, special counsel to the President, took the ma- terials from: Hunt's safe on June 19, and later turned them over to law enforcement officials. Dean, the govern- ment said, knew Hunt had quit on March 29 and wanted to make sure he had held no classified material in his office. But William 0. Dittman-, Hunt's chief attorney, said in court yesterday that Bunt was in his office "on an almost daily basis after March 29," and that Dean's action there- fore amounted to an unlawful seizure.?, _ ? v? ? Appeal Expected Meanwhile, the U.S. Attor- ney's office is expected to ap- peal today a D.C. Superior Court judge's refusal too order GOP fundraiser Maurice H. Stans to appear as a witness in the Oct. 30 trial of Watergate defendant Barker in Mamie A source in the U.S. Attor- ney's Office, which is acting on behalf of the Miami prose- cutor, here said that the gov- ernment would file its appeal in the court of appeals some- time today, "as soon as we get pie papers prepared." V Judge Paul F. McArdle last night issued a brief written opinion stating his reasons for onally ruling last week that "it oVas not necessary" for Stalls to appear -am witness. McArdle supported Stalls' contention that he is not a ma- terial witness in he trial of Barker who is accused of mis- using his notary public seal in cashing a $25,000 chock that had passed through the Com- mittee for the Re-election of the President. STATI NTL NEW BELiORD, MACS. Approved graligrp-" E - 71,23 S 62,154 114: cumwR8pio16o1 Spyin Another insider's book has been written about a government agency that, it is to be. presumed, was naive enough to expect a certain degree of loyalty from its employes. ., Patrick J. McGarvey claims he has written about the Central Intelligence ? ? Agency, with which he spent three as a service to the public.- He, wants to "shed some light on the myth that the CIA is an efficient well-run machine capable of almost any act of intrigue." But why (lid McGarvey call the book, "CIA?The Myth and The Mad- ness," when Most of the content is not about the CIA at all but about other , intelligence setups, notably in the ? Defense Department? This -violence to fairness suggests that royalty checks, .? not civic-mindedness, motivated the ? 'author. ' ? As for the CIA's comeuppance from A one-time operative, it seems the -.agency actually purloined the sputnik ? from under the noses of its guardians, and dismantled and photographed it before returning same to the exhibi- tion chamber. So what? Small re- turn, we would say, for the priceless nuclear fission secrets the -Soviet me Union gained by the more devious, and scurrilous method of bribing -, U.S. citizens. ' The book details how Director Rich- ard Helms of the CIA has telephones It% of subordinates tapped, how stiff are the penalties for leaving around a , single scrap of paper and how armed guards patrol CIA corridors in dark- - ness. There are Some who may be-? lieve such precautions especially nec- essary in view of McGarvey's flight into print-, with data from the boss' files. - McGarvey thinks the CIA is an inept "morass." A former FBI agent-. turned-author-thinks the .FBI is inept., Congressional hearing rooms have no trouble getting a Vietnam veteran to denounce the services (and one, John F. Kerry, is capitalizing on his expose by bidding for Congress in Massachu- setts' 5th District).. Isn't it possible, we wonder, that these services and these agencies are doing their level best to serve the nation and its people and that the best available 'brains- and integrity? including loyalty?are sweating at the task? There are deficiencies, it: goes without saying, and errors,. and mis- : Ljudgments. The CIA is. especially - vulnerable to a critic, Since its doesn't discuss its successes or its errors. (Although it is worth noting that the agency deleted only 100 lines from the manuscript McGarvey submitted under a secrecy pact he signed when hired, and which he appears to be violating in spirit if not in letter.) But too Many critics like McGarvey seem to have forgotten that in ap- praising what happens in war; or in '? intelligence work, one must start with - the basic. immise that war is hell end spying, is a dirty business. Criti- , sisin of a jli:1-)-leve1 supersecret agency ? ' like the CIA Ihat ,does not document . incompetence at the top, or venality, I iT 110 public service, and may well be _ a disserVice. Approved For Release 2001/03/04: CI -=IRDP80-01601R0002-00190001-2 Approved 'For Release 2001103104: CIA-RDP80-01601 CHARLESTON, W.VA. MAIL OCT 25 1972 E 57,285 1r Shrover 'Given Up (From Yesterday's Late Editions; .elly RICHARD GRIMES Of The Daily Mail Staff Depocratic vice presidential nominee R. Sargent Shriver told the. Charleston news me- dia that it does riot follow that he and Sen. McGovern have given up on this state , because both recently canceled appearances here. Ile also said in a telephone interview from Chicago with local newsmen that. people trained by the CentrLIritdlli gence,AgerteyetorWeirniaer- Terblry and Rugsia are being ' employed by the White 'louse to carry off a "comprehensive, calculated espionage" of the ...US. political system. "It's like a setting from Tha. Godfather," he said, re- .ferring to the Watergate af- ifair and subsequent charges. In other matters, Shriver Said the Kennedy family is rendering financial support, as -7 well as campaigning support, to the McGovern ticket and he mentioned Mrs. Rose Kennedy, Sen Edward Kennedy, and Ethel, widow of Robert Ken- nedy. But, he said he didn't know amounts. He also said that some blacks may support President Nixon, but most don't. He said -only those blacks in high-pay- r". S s..1\4c ovemHcs Not West VOMOVIIILMS . ? ing jobs, or hired by the gov- eynment would find the Nxion administration favorable. Speaking about West Virgin- ia, Shriver said the fact that he P. n d McGovern have can- Med could mean "we don't have to go back there." "We have a good chance to win there," he said. "I don't intend .to forget West Virginia," he added. Shriver rapped what he called President Nixon's re- fusal to disclose the source of $10 million in campaign funds. All other candidates, Demo, crats and Republicans, have made such disclosures 8nd Shriver said "It is insulting to the American people" that Nixon won't. He quoted Nixon's speech at Wheeling in 1952 when, as a candidate for vice president, he said it was not a question of the legality of an $18,000 Nixon fund then under attack, but a question of whether it was moral or immoral. The same Nixon statement a.pplie.s to today's GOP funds, Shriver said. With respect to Watergate, he said that the man sitting in the office next to the Presi- dent is connected with the , incident and he says the rea- son people didn't warm up to the issue when it first came up was because they couldn't believe the White House would do.such a thing. ? ; He said that CIA agents ?were told never to practice in : this country, but now. the peo- ple who were trained in that field have been employed to destroy a political party. - He said FBI reports now.: concur with what has turned up in print. He then recalled how Sher- man Adams was chased from the White House during the Eisenhower administration for receiving a vicuna coat. And r remember, he said when Ei- senhower met then Sen. Nixon k.in West Virginia and asked ; to "come clean as a 1 :?hound's tooth about a secret $18,000 fund he had?" "That's how people felt ; about morality in government I then. Now, they drop six and I eight 'million dollars on the White House doorstep," and Nixon thinks it is all right, he said. ? STATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 NEW YORK ME3 Approved For Release 2001436060:Te4ATRDP80-01601R Whl House Bugging Inquiry c.,,9-ari 2 Days After Arrests ? . By AGIS SALPUKAS whatever documents were. The answer to Mr. Hunt's there." -- . motion to return the materials special to iri,t New York Times , According to the papers, Mr. .tiso broil ; WASHINGTON, Oct. 24 ? Dean wanted to find out if ' " '''eht 'out that Mr. Hunt The White House made its first Mr. Hunt had turned over all was in \Vashington for two move to investigate the Water- classified papers and files to days after the break-in and gate bugging only two days the White House after he ceased that he was questioned by the after five men Were caught in.heing, a consultant to the While F.B.I. on the same day the five the headquarters of Inc Denic- House on March 29. men were arrested, cratic party on June 17, ac- Mr. Hunt had been hired to In another development, cording to papers fled at United review ew the Pentagon papers to .Frank Mankiewicz, Senator States District Court here determine which could be de- George McCiovern's national today, classified, He also worked hi political coordinator, called for The Papers give drie of the the fiel of narcotics importa- first glimpses into the activities con. - of John W. Dean 3d, legal Nun- Mr. Kehrli and an assistant sel to the President, .who was to Mr. Dean, Fred Fielding, had termed "a clandestine cam- asked by Mr. Nixon to inves" Mr. Hunt's safe opened .in the paign of bribery and espionage tigate all leads that might have presence of a Secret Service and sabotage financed with inc.olved any present members agent and the papers and arti- secret Nixon campaign tunds." of the White House staff in the cies were moved to Mr. Dean's ti:Nr. Mankiewicz released at bugging.office. a news conference here the , On Aug. 29, President Nixon On June 20, Mr. Dean sorted text of a letter to Attorney .said at a news confe.renee that through the material and foun{ General Richard G. Kliendienst tile investigation indicated that classified Matter "most of it citing "13 serious charges "no one in the WhiteHouse relating to the Pentagon against the Republicans, in- staff, no one in this Administra- papers." chiding violations of the cam- tion, presently employed, was Black AttacheCase pain finance laws and the involved in this very bizarre There was also a. black at- granting of favors by the Nixon inCident." tache case that was opened Administsation in return for The court papers were filed by Mr. Dean, Which contained large contributions to the "a large amount of electronic President's today with Judge John J. Sirica,campaign. . chief of the Federal district pment, as well as written Among the instances listed court, by United States attor- equi matter, pamphlets and instate- on the letter, signed by Mr. . neys who are prosecuting the' Lions bookets relating to elec- Mankiew icz and delivered yes- case. They are answers to mo- Ironic equipment." terclay, were the following: Hans filed by the defense law- "An Administration promise yers on behalf of the seven men Mr. Dean put the ? items in j indicted in the bugging. a cardboard box and they In answer to a otion th by E. turned over to e Federal Bwe re to retain weak rug flammability standards, which was followed u- by a $94,580 contribution from m , Howard Hunt Jr., a former read of investigation. White House aide indicted in The papers filed by the a carpet company executive. , (li:vident relaxation of air the case, it was disclosed that United States Attornc.,v's office. pollution standards in the case Mr. Dean received information argued. that . the judge should of the Bunker Hill Company, on Monday, June 19, that Mr. deny Mr. Hunt's moiion that a subsidiary of the Gulf Re- Hunt was possibly linked to the the seized articles and papers sources and Chemical Corpora- Watergate break-in, be returned to him. Mr. Hunt's had tion, "which is a strong Nixon The same day, the papers lawyer argued that they . contributor." . filed todiv Ktid. Mr. Dean or- been "improper with ly scize:1" q"The unusually quick grant- dered Bruce Kehrli, a staff sec- out a search warrant. in of a Federal bank charter" retary to the President, to go A hearingon all the mo - to a Minnesota businessman, to Mr. Hunt's former office in tions, which include several to Dwayne Andreas, after he gave Room 338 of the old Executive dismiss the indictments, will be. $25,000 to the Nixon campaign. . Office Building "to retrieveteld tomorrow. - - ------------ Kleindienst Pressed STATI NTL Mr. 'Mankiewicz said thatk Senator McGovern would use ai half-hour of prime televisionl time (7:30 to 8:00 on the Amer-I ican Broadcasting Company) to-1 morrow night for a speech "ont the subject of corruption in thel Nixon Administration." He also disclosed that recent\ reports of Pepublic.an-relatecil efforts to disrupt an.d confuse! the Democratic Presidential pri- mary campaign had promptedl the McGovern organization to an immediate and comprehen- set up a "ballot security s}-s- sive" investigation by the Jus- tee, on Election Day to ensure , tide Department of what he that voters were protected from 1 ! intimidation at the polls and I that vote tallies were not tam-1 pored with. .I Gary Hart, the Senator's' campaign manager, who ap- peared with Mr. Mankiewiezd released the partial results of ai door-to-door canvass - by Mc- Govern workers that, he -said,I showed that "ill areas we feel we should and must win, the; race is still very . much un-; .... decided." . .1 The Mankiewicz letter also pressed Mr. Kleindienst to act on a number of possible Re- publican violations of the Fed- eral Election Campaign Act of 1971, reported to the Justice Department by the General Accounting Office on Aug. 26. The department has said only that the G.A.O.'s charges are "under review" by its Criminal Division.. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/0S#F9W80-01601R0 0 SIIRIVER SUGGESTS BANNING CIA AGENTS FROM POLITICS . AURORA, -Ill. (AP) ? Sargent Shriver is proposing that former CIA agents be legally and permanently banned from American political campaigns, The Democratic vice-presidential candidate repeatedly has attacked the Nixon administration for what he has called the "ominous" introduction of the techniques of espionage and sabotage into the current campaign. Several former CIA agents have been implicated in connection with the break-in and alleged attempted bugging of Democratic national headquarters. Shriver gave a preview of his proposal to several persons who had been unable to fit into a filled-to-capacity school auditorium in Aurora Monday night. Ile said that while he was hozal of the Peace Corps he barred former CIA agents from the agency on the grounds ? their presence would be misunderstood by host govern- - ments, and that they might subvert the purpose of the Peace -Corps. STATI NTL Approved For Release 2001/03/04 : CIA-RDP80-01601R000200190001-2 WASHINGTON POST Approved For Release 2001/ei/9,&r. sVA-RDP80-01601 STATINTL Rug Smpeet Tied to Scheme U.S. Censorship Man Bare The censorship plan In- By Bob Woodward N?olving McCord was being and Carl Bernstein prepared by a special mili? Vashington Post &ar 1 Wrrl tary reserVe unit of the Of Rep William S. Moorhead flee of Ernertnney prepared. (D-Pa.) said yesterday that !less, according to Rep. he has uncovered a secret moorhead, contingene.y plan for na- McCord, a former agent ,now going on in Vietnam. Urinal censorship involving for the FBI, CIA and former ? :Moorhead said this contra- Watergate bugging defend- security chief for president; diets testimony by govern- ant James W. McCord Jr. Moorhead, chairman of Nixon's re-election commit- ment officials earlier this tee, was a member of the year before his Suhcommit- the House Foreign Opera- tions and Government Infer- military unit as a reserve tee that "implied that all of lieutenant. colonel in the Air their plans were pointed to- Illation Subcommittee, said Force until he resigned in \yard a censorship system that an investigation of February.for use only in the event of McCord shows that he par- McCord was one of five a nuclear attack." ? tieipated in the drafting of a tn.en arrested June 17 in the He supported this conten- so-called "National Watch- Watergate bueging incident lion by quoting from a chap- list" as part of the censor- and has since been indicted tor in the plan, saying that ship plan. -censorship would be consid- n charges of conspiring to "As part of a censorship o ered in "limited war, or eon- eavesdrop on Democratic program which will be put flicts of the 'brush fire' type, national headquarters. into - effect in a national ?When men like James in which United States emergency," Moorhead said, forces . are involved else- the Watchlist would be used McCord are involved in po- where .in the world on land, as a guide to "information litical espionage and also gearr.ir - the censors will look for as are responsible for the offi- in the air." ' they open letters, monitor dal collection of inferma- . I he time has come," : broadcasts and question tion through a censorship Moorhead said, "for a -full study. of both the - plans and travelers." system," Moorhead said in a practices (for censorship) "I fear that this Natonal prepared statement, "I have and, as Subcommittee chair- Watchlist may . ? . include no doubt that the official .the names of 'questionable, National Watchlist w man, I . will initiate such a ill. pin- individuals, such study immediately, asking as those point individuals slated for formal questions of the een- The collected during Army sur- politicalreprisal. . sorship planners in prepara- ported veillance activities, and also Associatedtion for full-scale hearino's Press re- collect similar types of in- in the next Congress." .- yesterday that the formation- about American "lee of Emergency PrePar- He said the existence of edness said the special re- citizens," Moorhead said in serve unit's duties were t.0 the 15-member reserve unit a statement.. which meets monthly in the "computer proce- annex to the White House In other matters related Prepare . dures for compiling a ' offices raises the following to the Watergate investiga- 'watehlist," but that "no ac- additional "smelly ques- tion: , . tual watchlist is maintained tions:" ? Newsweek Magazine by the unit." ? Why are military Intel- said that a deputy state Ile- Moorhead said be began . public:an chairman in Inch- his inquiry into the reserve ligenee personnel given re- -ana was recruited as a ,unit after a June 20 story in sponsibility for censorship Nixon undercover operative . The Washington Post s-aying planning? 0 What sort of informs- by Donald II. Segretti, who . that McCord was a member tion, and whose names, will federal sources say was of the unit. At that time put on the National recruited by White House sources inside the unit said 'e W tchlist' In citing what, he called "disturbing facts," Moor- head said that a copy of the National Censorship Plan shows that it could be insti- tuted by the President dur- ing a limited war such as is Newsweek identified the Indiana GOP leader as Charles Szihlik. 24, ?and quoted him as telling friends that the object of the Nixon forces' sabotage campaign was "to swing the convention to McGovern ... to literally destroy strong STATINTL candidates like Muskie." Newsweek said Szihlik's 'work included compiling dossiers on Indiana's Demo- cratic convention delegates, ''coyering everything from ? bank loans to sexual peccad- illos." -,? activities is the latest indica- lion purported state- ment about the object of his tion that the Nixon forees' Sill) rosa campaign may have been undertaken ? at least in part. ? to help Son. George McGovern win the Democratic nomination. McGovern reportedly was viewed by White House strategists as the easiest Democratic opponent for President Nixon to run against.. According to information. in FBI and Justice Depart- ment files, a "basic strat- egy" of the Nixon re-elec- tion campaign was to dis- rupt' the Democrats during their pd manes to such an extent that the ?Democratic Party could not reunite after choosing its Presiden- tial nominee. According to Newsweek, "Szihlik and his subagents" distributed posters saying "a into for Muskie is a vote for busing" in the Indiana, Illi- nois and Wiscosin primaries. But other activities aimed at disrupting campaign rallies and throwing campaign aides to engage in .sabotage its purpose was to develop a schedules into disarray were ! list of radicals and prepare ? what other facts about unsuccessful, according to ; .contingency plans for eon- ,,the censorship system have the magazine. and spying activities agianst the Democrats. ?sorship of the news media been hidden from the Con- Segretti reportedly told a ? Time Magazine said that and U.S. mail during a war. gross and the public? friend that one of his "con- Jeb Stuart Magruder, one of In addition to the Water- Meanwhile, Newsweek. tacts"- for spying and sabo- two deputy directors of the gate bugging, it was re- Magazine reported today tape activities was Dwight ? President's re-cleclion corn- rivaled in September that that a deputy state Republi- Chapin. President Nixon's mince, "played a key role in "McCord was involved in in- ean chairman in Indiana appointments secretary. Se- the Watergate case" by au- vestigatine syndicated col- 'as recruited as a Ni gretti hired Szililik early xon no the viithdrawal of umnist Jack Anderson and- dereflver operative by Don- this year, according to secret . funds for political in- had prepared a two-page "in- aid It. Segretti, who federal u pN7i'lseweemkaazine said Sc- though gathering, even terim report" on Anderson's sot say is an aeent. --though he may have ap- business and social relation-. ?calm. hired by the White gretti used the "cover" ? proved 1 heexpenditure ship with Anna Chennault, a House to engage in sabotage Cleaanliengs with Szihlik?the "Simmons" in his .without knowing about, the member of the Republican activities against the Demo- 2 ;Watergate bugging. Ta -Approved F IA-RDP80-0-1661R00020019Q001- continuea. - TIME iNvEsTAIAMvpd For Release 2001/021SC. afit-ASIWR601 More Fumes from theW tergcde This kind of activity has no place whatever in our electoral process or in our governmental process. And the White LI ?use had no involvement what- ever in this particular incident. CO Richard Nixon told a White House press conference last summer, just after the first revelations of the Water- gate affair. But some incriminating con- nections soon were made. Two of the seven men indicted for breaking into the Democratic National Headquarters last June to plant bugging devices had served for a time as White House con- sultants. The money that financed the espionage operation was traced to the Committee for the Re-Election of the President. Now TIME has learned that information in the Justice Department's files establishes a direct link between the White House and a Los Angeles attor- ney named Donald H. Segretti, who was paid more than $35,000 from the C.R.P.'s funds to subvert and disrupt Democratic candidates' campaigns this election year. The department's files state that Segretti, a 31-year-old registered Dem- ocrat and a former Treasury Depart- ment lawyer, was hired in September 1971 by Dwight Chapin, a deputy as- sistant to the President, and Gordon Strachan, a staff assistant at the White House. Chapin is the President's most trusted aide-de-camp and acts as a li- aison between Nixon and his giant Staff. For his services, Segretti was paid by Herbert Kalmbach, Nixon's personal attorney who has handled such matters as the acquisition of Nixon's estate at San Clemente, Calif. Segretti's recom- pense included a $ 6,000-a-year salary -plus expenses. From Sept. 1, 1971, to March 15, 1972, Kalmbach gave Seg- retti more than $35,000, including one payment of $25,000 in cash. The mon- ey came from a C.R.P. fund that was kept in the safe of Maurice Stans, chief political fund raiser for the President. Chapin and Strachan did not respond to efforts to reach them for comment. It was a record of telephone calls be- tween E. Howard Hunt, apparently one . of the chief movers ip the Watergate op- eration, and Segrctti that first put in- vestigators on to the scent. Next they discovered that Segretti went to Miami to meet with Hunt, one of the two for- mer White House consultants indicted in the Watergate affair. The meetings occurred at the time the Watergate bug- ging scheme was being planned. The Justice Department investigators, under the command of Assistant Attorney General Henry E. Petersen, did not pur- sue the Segretti connection. Segretti divulged to Justice Depart- among other things, to disrupt the pri- mary campaigns of Democratic candi- dates. On one occasion, he said, he went to California to harass candidates with telephone calls and feed them false tip- offs. He also arranged to have embar- rassing questions put to the Democrats at their public appearances. The De- partment of Justice learned that in 1971 Segretti asked a former Army officer friend to infiltrate the George Wallace campaign and work as an informant. An assistant attorney general of Tennessee, Alex B. Shipley, has said that Segretti approached him last year and tried to hire him to disrupt Democratic campaigners. "It wasn't represented as a strong-arm operation," said Shipley. "He stressed what fun we could have." As an example of the trouble he might cause, Shipley was told that he could call the manager of a coliseum where a Democratic rally was to be held. He could represent himself as the candi- date's field manager and report some threats from hippies or other trouble- makers, asking that the rally be moved up to, say, 9 o'clock, thus ensuring that the coliseum would be padlocked when the candidate arrived at 7. Know Nothing. As the fumes of Watergate continued contaminating the atmosphere of the election year, there were other hints of "fun." The Wash- ington Post reported last week that a let- ter to New Hampshire's Manchester Union Leader ? accusing Edmund Mus- kie of a racial slur against French Ca- nadians may have been written by Ken W. Clawson, deputy director of White House communications. A Post report- er, Marilyn Berger, claimed that Claw- son told her that he had written the note, which said Muskie had condoned the epithet "Canuck," an insult to New Eng- land's French Canadians. The letter, published over the signature of a "Paul Morrison" in the Union Leader, helped to precipitate Muskie's famous "crying speech," when the candidate shed in- dignant tears and thus damaged his image of stability. Clawson last week declared: "I know nothing about it." Last week Edmund Muskie charged that his presidential effort was plagued by a "systematic campaign of sabo- tage," although he did not specifically accuse the Republicans. Sometimes, he said, embarrassing campaign material was sent to constituents in "Muskie" en- velopes. Once, before the Florida pri- mary, a flyer was distributed on Mus- kie's stationery accusing Senators Hubert Humphrey and Henry Jackson of illicit sexual activities. TIME has also learned that Bernard Barker, the former CIA agent who led the raiding party into the Watergate, re- Hair Daniel Ellsberg, the man who released the Pentagon papers to the public. Bar- ker flew the Cubans to Washington first class, showed them a picture of Ells- berg, and told them: "Our mis?ion is to hit him?to call him a traitor and punch him in the nose. Hit him and run." The site chosen was outside the Capitol ro- tunda, where the body of J. Edgar Hoo- ver was lying in state. The idea was to denounce Ellsberg, who was holding a rally on the steps, and start a riot. As it turned out, the "riot" ended after a brief flurry of punches, most of which land- ed on Ellsberg's bodyguard. It is difficult to tell just what effect CONRAD-LOS ANGELES T:MES . . more weeks!...Four more weeks!.. the Watergate affair and other episodes of political sabotage will have upon the presidential election. It may be that the entire issue of dirty tricks will only lin- ger vaguely in the air and then be swept aside in a Nixon:triumph. Texas Dem- ocrat Wright Patman, chairman of the House Banking and Currency Commit- tee, failed last week in his repeated ef- forts to open a congressional investiga- tion of Watergate. With that, Edward Kennedy, as chairman of the Senate Subcommittee on Administrative Practice and Proce- dure, took the first steps to open an in- vestigation of his own. Late last week, the Subcommittee's Democratic major- ity approved Kennedy's plans to sub- poena witnesses in an inquiry not only if Watergate but also of other political spionage. Whether the investigation ould be mounted soon enough?or would uncover enough beyond what is ment officjals only thebie ouineWi? yd iffe r- ff cliiiffAidaPrttirAntiafta 1 WitAftStal his missi ppr v t OE, , S(ia ig a .; ? NEWSWEEK 2,3 OCT 1972 Approved For Release 2001/03104: CIA-RD NATIONAL, AFF1111249 STATINTL Mike Lien?Now York Times AhlSkie and the "Canttek" letter: Dirty tricks? dlerParenn Ior months, Watergate watchers have pondered the question of precisely what the raiders were seeking?and why. Last week, an answer finally began to take shape. The predawn raid on the Democratic National Committee head- quarters, it appeared likely, was only part of an elaborate Republican cam- paign to sow strife and confusion through- out the Democratic Party?a clandestine operation extending beyond petty snoop- Cry into the arcane and disturbing realm of political sabotage. Perhaps as many as 25 GOP agents? some of them former CIA and FBI men highly skilled in the esoteric arts of elec- hunie surveillance, psychological warfare and "dirty tricks"?are believed by Fed- eral investigators to have been involved. One of their alleged recruiters came to light last week when a young Democratic attorney charged that he had been prop- ositioned by a former Trea.smy Depart- ment employee to take part in Republican espionage. And investigators have con- cluded that their undercover activities, antiseptically dubbed "offensive securi- tY," may have extended to forging letters under candidates' letterheads, leaking damaging items to the press, seizing tonfidential files, disrupting campaign celiedules and poking into the private lives of Democratic campaign workers. One goal seems to have been the dis- ruption of the Democratic National Con- vention in Miami Beach last July. Some of the evidence seized in the Watergate NrApproVedificirsRetease .strongly suggests the national committee ery nsllVe Secu the alleged ringleader of the Watergate Five, was arrested inside DNC head- quarters, he was carrying documents that could have been used to foment an embarrassing. convention fracas. Among the Democratic papers McCord had picked up: a sheaf of applications for college press passes, a DNC memo on housing and accreditation of college press representatives, and a staff memo on. housing and other arrangements for sev- eral other youth groups. "It was a com- plete package," a source close to the investigation told NEWSWEEK'S Nicholas Horrock, "enough material to forge col- lege press credentials." Explained a former CIA agent: "The psy-war oppor- tunities were endless. You pass off bogus tickets to a bunch of young people; J- 26:01/03/04:: RDP L ii&\ was directed, at least in part, at Al' that obieettvo xvi,pn rnmpc w MPC.firfl (ln,'c,n ChokE ve;tpi..? L you've got a mini-riot when they try to get in?and with media coverage, you've supported a thesis of party disarray." Even if that alleged GOP scheme mis- carried, the Democrats suffered more than their share of mysterious fiascoes during the campaign year?and some of them, in the light of last week's re- ports, do indeed bear suspicious signs of political sabotage. The celebrated "Ga- Duck" letter published in the Manchester Union-Leader before the New Hampshire primary, implying that Sen. Edmund Muskie had slurred Americans of French- Canadian descent, is a case in point. The letter was one of the causes of NIuskie's famous tearful outburst against the Un- ion-Leader, which in turn may have con- tributed to his disappointing showing at the polls. Nov there is increasing reason to believe the letter was a hoax, the work, perhaps, of a White House aide. Author: The letter was signed by one Paul Morrison, of Deerfield Beach, Fla.? but Morrison has never been found. Sub-. sequently, someone calling himself Har- old Eldredge, of Fort Lauderdale, Fla., wrote the paper, claiming that a Boston Democrat had paid him $1,000 to fab- ricate the letter?but neither Eldredge nor the Boston Democrat has ever turned up either. Last week, Washington Post correspondent .Marilyn Berger reported that White House Deputy Director of Communications Ken W. Clawson had told her flatly, "I wrote the letter." Claw- son denied the story, and NIuskie, furi- -0160101002001900014by ident himself." News of the alleged letter hoax nromoied tho Demoerats to Name nn en- the Pres- Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 tire spate of campaign Misfortunes upon GOP saboteurs. Doubtless some of the tales they told simply involved the usual unexplained foul-ups of any campaign, and some of the pranks may have origi- nated with rival Democrats. But Frank lankiewicz, George NicGovern's politi- cal director, listed ten specific acts of alleged sabotage, some of which he said "must have come from the Republicans." Among them: a phone call from someone claiming to be campaign aide Gary Hart to AFL-CIO chief George Mcany, per- emptorily ordering Mcany to come to New York for a meeting with McGovern ?hart denies making such a call; anoth- er call to CBS's Walter Cronkite from someone who said he was Nlankiewiez, thanking Cronkite for loading the net- work's newscasts in McGovern's favor evi- dently in the hope that Cronkite would admit favoritism?instead, Cronkite called Mankiewicz and discovered the hoax; and still another call to CBS last week from .someone claiming to be McGov- memos to the press and stolen polling data from his files, and that a charter Hight bound for Portland, Ore., had somehow been rerouted to Salem?thus throwing a whole day's campaigning into disarray. COD: The most elaborate incident in- volved a Muskie fund-raiser at the Wash- ington Hilton back in April. According to James Goodbody, .Nluskie's finance chairman, $300 worth of liquor, a $50 floral arrang,ement, cakes from the Water- gate pastry shop and 200 steaming pizza pies?all unordered?arrived COD. A dozen African diplomats were invited by people posing as Muskie aides, and chauffeur-driven limousines were ordered up to deliver them. And two magicians ?one of whom had flown in from the Virgin Islands?materialized with instruc- tions to entertain the children. There were, of course, no children present. At one stage, the GOP "offensive se- curity" network contemplated?and then rejected?enlisting a computer in its 2 network of alleged saboteurs to light. According to the attorneys, as reported by The Washington Post, Donald H. Se- gretti, 31, a former Treasury Department lawycr with whom they had served in Vietnam, approached them in mid-1971 to work for the Nixon re-election cam- paign as undercover agents. In return, they said, Segretti promised the lawyers "big jobs" in Washington after the Presi- dent's re-election. One of the three, Alex 13. Shipley, now an assistant- attorney general for the state of Tennessee, said Segretti told him the work involved po- litical espionage and sabotage of Demo- cratic primary campaigns?and might re- quire false identification papers. Segretti wanted no strong-arm tactics, Shipley emphasized. "He stressed what fun we could have." Segretti, Shipley said, wanted him to recruit five more agents, but to keep their names to himself. Segretti said he would keep his source of funds secret, too. "How in hell are we going to be taken. care of if no onc knows what Nve're doing?" Shipley asked. Shipley says SO- , grettit replied: "Nixon knows something is being done. It's a typical deal: don't- tell-me-anytliing-and-l-won't-know." 'Fiction': The attorneys said they turned Segretti down. Segretti, for his part, has testified before a Federal grand jury but has been no more forthcoming in public than to scoff, "This is all ridieu- ; bus," and a spokesman for the Commit- tee for the Re-election of the President called the Post's story "a piece of fiction." Curiously, however, just after the Water- gate raid, Hunt and Liddy flew to Cali- fornia and met with Segretti. Still another lawyer, Lawrence R. ? Young, 31, of North Hollywood, Calif., said in a sworn affidavit to the Post that Segretti Shipley Al Segretti had conic to him "in a panic" after the Watergate incident and said "he felt he was being used." Young and W Al any eNmnee?Newsweek Segretti had been undergraduate friends Mankiewiez: Hoax call to Cronkite at the University of Southern California; both were also friends there of Dwight ern's TV buyer, asking to cancel the cause. In February 1971, Administration Chapin, now 31 and deputy assistant to candidate's Vietnam talk?the network officials invited a former CIA operative the President and a member of the checked back ?vith McGovern headquar- and computer mathematician to meet \\lite Ilouse palace guard. According to ters and the ruse failed, with them to discuss the possibility of Young, Segretti said that "Chapin was Muskie weighed in with his own developing a sophisticated computerized his contact at the White House." Young charges of sabotage designed to discred- intelligence bank of personal data on po- also swore that Segretti told him he was it himself and other Democrats. A poll litical friends and enemies. The specialist being paid "by a very close friend of the showing that 51 per cent of the inter- said he explained that "scientific method- President who is an attorney." vicwces considered Sen. Edward Ken- ology" could be used to store data so Whi-tther any of the week's stories ? nedy unfit for the Presidency was mailed people could be "leaned on." With dirty would build political espionage into a to Democrats in NIuskie envelopes last linen available on demand, he told major campaign issue remained to be year, the senator reported. Another spu- NEWSWEEK last week, "it is conceivable seen?so far, according to the polls, the rious Muskie mailing just before the that key people could be persuaded to electorate has remained remark-ably un- Florida primary, he said, had accused repudiate a candidate they had been excited about the whole Watergate af- Senators Henry (Scoop) Jackson and supporting"?a prospect so unsavory that fair. Sen. Edward Kennedy, chairman Hubert Humphrey of sexual misconduct. the mathematician's firm backed out. 4 of a Senate Judiciary subcommittee, last And in the New Hampshire campaign, Not long afterward, a variety of of- week ordered a "preliminary inquiry," Musk-ie complained, Manchester resi- fensive security groups came into subpoena power, into the being complete with dents were awakened by middle-of-the- A Nt lute House intelligence unit includ- /snooping and sabotage charges. He dc- night phone calls from people claiming to ing E. Howard Hunt and G. Gordon V dined to commit himself to hold pnblic represent the Harlem-for-Muskie Corn- Liddy, two of the men indicted in the hearings before Nov. 7, but the Kennedy on behalf of black people. .Muskie mince and and touting NIuskie for his efforts 'Watergate affair, forined t up that sum- investig? L. . stems the last chance mer. 1 he ther char iiiita te da itLiFt0IVI 601 all. 1 - i as ir c 41_ts extraordi- gcdAllOtelrd IP& fieleas eg2001 I ary rann !cations to get a public airing kori200490004 2 ters had leak? con K ential campaign young attorneys who first brought the before Election Day. STATINTL WASHINGTON Approved For Release 2001WO /041040WuKtiwwww-rx ri ? By PATRICK COLLINS ::? - and JOSEPH VOLZ Star-News Staff Writers An Air Force officer who was on active duty and a re- tired CIA employe were mem- bers of an undercover security force operating at the Nixon campaign headquarters under the control of Watergate bug- ging suspect James W. Mc- Cord, it has been learned. , The security force apparent- ly had a different responsibili- ty than that of the political ?espionage team( also directed by Mc Cor d, which was charged in the June 17 break-in at the Democratic National Committee offices. ' The security squad was not on the committee payroll and was paid in advance ? often In cash ? by McCord, who was chief security adviser for the Nixon re-election commit- tee, until -being fired after his arrest inside the Democrats' Watergate offices. yThe Air Force officer on the squad has been identified as Lt. Col. Alfred L. Green, now retired. The ex-CIA etnploye is William Shea, who heads the firm which took over Mc- Cord's operation, 'McCord's Men' Committee sources say the men worked at night on the -second floor of the campaign headquarters where G. Gordon Liddy, former finance commit- tee counsel also charged in the bugging case, had his office. Also on that floor were two large safes, one containing a $350,000 secret cash slush fund from which it has been al- leged "political espionage" .activities were financed. - The security squad mem- bers carried no committee identification and were known to committee workers only as "McCord's men." One of the men on the squad said his duty was to check .backgrounds of committee em- ployes and research left-wing . organizations which were felt to pose a threat to Nixon's re-election. Beyond this little is known about the duties the men per- formed. It is understood that -McCord identified the men to some campaign officials as "building guards." he served as the chief logis- tics officer for the Armed Forces Radio-Biological Insti- tute in Bethesda, Md., before retiring in July. Green denied that he worked for McCord or the re-election committee. "That's wrong," Green told a reporter, "I nev- er worked for aCord. He is just a good friend of mine. Just leave me out of this. I don't want my name in- volved." A committee spokesman first said Green had not worked at the committee, but later, after checking with campaign officials, said that Green had worked there as a guard last spring. The spokes- man said Green was paid for his work by McCord. Green could not be reached for comment on this state- ment. He told a reporter earli- er that he "may have stopped by" the committee a couple of times "But I don't remember why I went down there." The committee spokesman said that he had been told that "McCord had these men work- ing for him and they would fill in when the regular guard staff couldn't make it," Other sources at the com- mittee said Green and his as- sociates wer e mysterymen. They said people working closely to Green often called him by a code name "Green Label." Navy Capt. Myron Varon, commander of the radio-active research center, said he was "unaware" of Green's activi- ties with McCord. "I don't know if there is any- thing wrong with that," Varon said. "And if he was doing it, he was doing it on his own time because he worked here during the day." Varon said Green was a lo- gistics officer in charge of the center's modern electronic equipment and the closed- circuit television supply. The military generally dis- courages officers from taking an active duty role in politics, but a spokesman for the Air Force said he "didn't think" Active Duty that working as a guard in a Green waAlaRiMe(dtFOr Reileialktf2001403/04 last spring when he was work- of any regulation. ing for McCord. The investigation of the Wa- tergate bugging case revealed that McCord had purchased a sophisticated electronic re- ceiver for the eavesdropping equipment planted in the Dem- ocratic offices. It also showed that McCord had bought sever- a I closed-circuit television sets. But Varon said that Green had no technical knowledge about electronic equipment. "He just handled the paper work involved," Varon said. "Green is not the type of guy who would get involved in any complicated operation . . . I can see him doing guard work." Nocturnal Security Force ? He said Green served as a supply officer for an air base in Vietnam before coming to the center three years ago. Green retired July I. when he was passed-over for a pro- motion to the rank of colonel. After his retirement, Green began working with Security International, the firm which took over McCord's business last month. The head of Security Inter- national, Shea, also was a member of McCord's noctur- nal security force. In addition to Shea, the team included Louis James Russell, former top investigator for the House Un-American Activities Committee, and Alfred Bald- win, a former FBI agent who has admitted monitoring bugs implanted in the offices of the Democratic National Commit- tee. Although Baldwin has ad- mitted that he spent his nights in the Howard Johnson motel ? across the street from the Watergate ? listening in on the Democrats, Shea and Rus- sell have offered different ver- sions of their activities in the weeks before the break-in. Shea has told friends he was spending evenings working on burglar alarm systems. And Russell has told The Star-News, that his main function was' guarding the finance commit- tee headquarters. 'The Good Times' etiMPPROrOlogl4R0 Russell decided to go down to ? the Howard Johnson's to get a snack. He said he went there because he had a "sentimen- tal" attachment to the place. "I used to go with a girl who had her hair done at the Wa-STATIM tergate," Russell said, "And we'd go over to the Howard Johnson's for dinner after- wards. I went there that night to think about the good times we had." Russell said he is still work- ing for McCord helping him with his legal defense. McCord and six others including the Nixon finance co m mitt ee counsel and E. Howard Hunt, an ex-White House consultant, were indicted Sept. 15, on charges of conspiring to bug the Watergate. Russell was questioned by the FBI but he did.not testify before a grand jury which spent months investigating the case. A Nixon re-election commit- tee spokesman, when asked, acknowledged that both Rus- sell and Shea had worked at the committee, but. were paid by McCord Guards at the Nixon Re- election Headquarters receive $3.50 an hour. Shea and his wife Terry, who worked as a secretary for McCord for about a year, live in an expensive home in Poto- mac. Green is building a home near the Sheas. Shea declines to discuss McCord .er Security Interna- tional with newsmen. He told The Star-News: "If you don't leave me alone I'll get you and your newspaper in a lot of trouble." Just why the Nixon commit- tee did not pay, these men as it did the rest of the guard force is unclear. Most GOP security guards have been named in the committee reports of ex- penditures to the General Ac- counting Office. - But in the case of this secret security force, the committee lists only one payment to Mc- Cord associates, for $1,091 and dated April 17. There is no record of a reim- bursement to McCord for Rus- sell, who worked full time at otoyeMoottI-Julnacte 1'17 bre-ak-in. Approved For Release 2001 17 3/04G:TOIX2RIDP80-01601R 29 OCT '1972 STATINTL By PATRICE COLLINS and JEREMIAH O'LEARY Star.News Staff Writers The grand -jury that indicted seven men in the Watergate bugging case has been meet- ing secretly since the indict- ments were handed down and it is believed the jury is inves- tigating new charges linked to - the Watergate case. Shortly after the seven men were indicted Sept. 15, Henry E. Petersen, chief of the Jus- tice Department's Criminal Division, Said the case was closed and the investigation into the incident had been concluded. However sources close to the investigation told the Star- News today that the grand jury which probed the Water- gate case had had several ses- sions since the Sept. 15 indict- ments. Normally, the U.S. attorney recalls a grand jury on a case only when new evidence has been discovered. Sources close to the investi- gation said the jury may be examining several incidents - related to the Watergate bug- ging case. Among the charges the jury may be probing is the accusa- tion that the Nixon re-election committee supported an or- ganized band of political sab- oteurs who were assigned to disrupt the Democratic pri- mary and sabotage the cam- paign of Democratic presi- dential nominee Sen. George McGovern. Sources say the jury may ? also be looking into the charges by the General Ac- counting Office that the Fi- nance Committee to Re-elect the President committed about a dozen "apparent" violations of the federal campaign spend- ing laws. Listed in those violations, re- ported in a GAO audit last August, was a $3503Ga0 cash slush fund which was located in the private safe of Nixon's rzr,au terA rsel n tld - the money used by the Water- kinson, Stans' attorney, and gate seven came from Stans' was told that Stans did not safe. ? ? appear in court because he Recently, sources in the Jus- had not been served with a tice Department have said subpeona. that any investigation into vio- Until that day no raid had lations of the campaign spend- ? come closer than five miles to lag law would be delayed until : the center of Hanoi during the after the election. current bombing campaign un- A third reason for the jury der rules originating with the Meetings, sources say, is the White House and the secretary speculation that one of the de- of Defense and passing down fendants in ? the case has through the military chain of agreed to cooperate with the command. government. It has been confirmed by a Till now there has been no ? high ranking Pentagon official indication that any of the sev- that Defense Secretary Melvin en men ? indicted have been R. Laird cleared the Gai Lam Walling to talk about their in- yard as an eligible target less F. ? sfplvement in the case. than two weeks before the raid ?The government has only took place. due inside witness -- Richard Five days before Navy F-4s Baldwin, a former Flit agent and A-7s from the carrier Mid- 'ho says he monitored trans, way set out to hit the yard missions from bugs implanted Oct. II, Air Force fighter iii the phones of the Demo- bombers raided three of the cratic National Committee. anti-aircraft missle sites that :Investigators associated ring the city. sttith the case said it would be In the raid of October 6, ac- impossible "to take the case cording to Saigon military any further" unless we can get command's routine report, the one of the leaders to talk. Air Force pilots hit five SAMs :The three most prominent within five miles of the city to men charged in the case were the south, four more nine G. Gordon Liddy, former coun- miles southeast of the city and sel to Nixon's finance commit- tenth five miles northeast of tee, James McCord, security Jthe city ? within two miles of advisor to the Nixon re- the Gal Lam yard. election committee, and E. The only official acknowl- Howard Hunt, a former White edgement of the incident to a House consultant. have -come from the military Meanwhile, Stans failed to before today had suggested appear in Superior Court to- that the legation was hit by a day for extradition proceed- North Vietnamese SAM that jogs in the Florida trial of Wa- missed its target and "could tergate defendant Bernard L. have i m p a c t e d on the Barker. ground." Members of the police de- Listed to Appear partment's fugitive squad, The former secretary of which serves all out of state commerce had been listed to witness supoenas, had at- appear this morning in assign- tempted to serve Stans at his meat court ignore Judge Paul home in the Watergate corn- McArdle, a routine proceeding, . plex twice on Tuesday, but he for the designation of a judge was not them to hear Florida's request to On Wednesday, the U.S. at- ,, ? extradite Stans to Miami as a torney's office made arrange- witness in the Oct. 30 trial. meats through Stans attor- When Stans did not appear neys for Stans to be served ch ? during the first two hours of - `; chief fund rais m However, the time of service vester ' er, Maurice the session, newsmen called ? was unclear, court sources Stans. ? His APPCPYRCIOFRE? Rel041Martl c. .-..JAMIrc)1113,02r0913VO4p0190001-2 o tan a at 1 nt < Court sources said there was just a misunderstanding as to the time and that Stalls was not attempting to evade serv- ice. Superior Court Judge Paul McArdle was to hold the hear- ing for Stans this afternoon. He signed a special appear- ance order prepared late this morning by the U.S. attorney's office after consultation, with Stalls' attorneys. Miami State Atty. Richard B. Gerstein, informed of Stalls' failure to appear this morning, commented, "This is really black humor when it is neces- sary , for Washington police fugitive squad men to go out looking for one of the Presi- dent's highest confidants. It would be easier to locate one of the high-ranking figures of org?anieed crime." Moore told reporters only that Stalls ? had been here everyday this. week but one and had been available any- time for service of the sub- poena. But neither Stalls nor his attorneys could be reached to clarify the situation. spokesman Powell Moore said p mand 9:13 p.m. yesterday he had contacted Kenneth Par- ' ? but Stuns was not there. Approved For Release 2001/23906CTCM2RDP80-0 ()If .4 Book says CIA stole :Sputnik briefly 8. 'Washington T?The 'Central all the targets it was working Intelligence Agency stole the Soviet Sputnik to examine it minutely while it was on a against were already ade- quately covered by other intel- ligence sources. world tour in 1953, says a new The CIA had no comment on book by a former intelligence Mr. McGarvey's book. And in agent. , giving him the go-ahead, the ? Patrick J. McGarvey. in acrencv wrote Mr. McGarvey if "CIA?The Myth 8.:, the M;-2d- 0 ? ness," a book critical of the any claim is made that the agency, relates: CIA "in any way approves "The Sputnik display was your book or confirms the ac- stolen for three hours by a CIA curacy of any information con- team which completely dist tamed therein, it will be offi- mantled it, took samples of it cially denied and we will con- structure, photographed ii, sider what other action may be reassembled it and returned i to its original , place unde- appropriate under the eircum- tected,'.' : CIA review required . stances." ' Mr. McGarvey is a 14-year .. . . , , 1 veteran in intelligence, three The country where this cc- 1 years with the CIA, the rest curred, Mr: McGarvey said, I with the Army's National Secu-1 was among the things in about rity Agency and the Defense I 100 lines the CIA cut out when Intelligence Agency between i he submitted his manuscript to 1955 and 1969. the CIA. Review by the CIA He served in intelligence as- was required under his secrecy signments in Korea, Japan, agreement signed when he Taiwan and Vietnam. joined the agency, he said. ? Other things Mr. MeGarvey says he is ,revealing for the first time include: , bickering ' Battling with 2 authors Mr. McGarvey's book is one of three new books on the CIA but the agency is battling with nearly .provoked Chinese Com- authors of the other two who munist entry into the Vietnam did not present theirs for clear- war in 1966. - - - ance. 2. Richard Helms, director The CIA tried to block the of ' central intelligence, taps publication several months ago the phones of his subordinates. of "The Politics of Heroin in 3. The FBI tried to enlist the Southeast Asia" by Alfred CIA in an attempt to "scandal- McCoy, which accused the CIA ize" Stokely Carmichael, the of heavy involvement in drug black civil rights activist, in traffic in that area. The book Hong Kong during his travels was ? published over CIA pro- in 1967. test. 4. The ill-fated Pueblo mis- Last spring, the CIA won a sion and capture by North federal court injunction to Korea was unnecessary .since block publication and speeches by a former high-ranking intel- ligence official, Victor Mar- chetti. He is now appealing to the Supreme Court. ..... STATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001103/04: CIA-RDP80-01601R0 STATINT'L BOULDER, COLO. CAMERANT 2 0 19721 E - 17,112 ? S President Should Clarify Watergate I have just read with deep concern the account in Satur- day's Camera of the Watergate conspiracy, as described by one of the conspirators, Alfred C. Baldwin III. It seems to me that the cavalier attitude of the Republican Party, including its chief, Richard Nixon, that this episode is none of their affair, or a mere peccadillo, or just "dirty politics, as usual," or even a plot of the Democrats (Agnew); should fill everyone in America, ? of any party, with alarm. Armored cars, pistol-packing ; ex-FBI and CIA agents, the : most sophisticated electronic equipment, including walkie- talkie and TV surveillance apparatus, the secrecy even among the conspirators, the ; easy cash, all add up to something very like the ? ruthless gangsterism that characterized Hitler's rise to power and destroyed all political parties in Germany, but one. Those guns described in the article were only to kill people; those armored liinosines were only to escape in unlawful flight. The money, electronic equipment, the planning were all dedicated to manipulating the American electorate, to defeating fair play and decency in democratic debate, to undermining the Consititution, which instructs us in the two-party system. I do not like to question the integrity of the President of the U.S. If I must have him as President for another four years, as seems likely, I would like to believ.e in him, to have faith that even though I disagree with him he is an honorable man. I call on him to clarify now the responsibility in this conspiracy, to make public amends where possible, to take steps to assure the public that the Republican Party will never again indulge in these gestapo tactics, and to repudiate publicly all of the rascals in- volved. LENORE STEWART 921, Fifth St. Approved For Release 2001/03/04 : .CIA-RDP80-01601R000200190001-2 Li SAN DIE300 CAL. ved For Release 2001/03/04: CIA-RDP80-0160 Tea11119 CT 2 01972' STATINTL E 121,726 Kleindk:L, ? By MARK.MOND Atty. Gen._ 'Richard Kleindienst told? a news COD- ference ip San ..Di:2go last night that it apPears someone in the justice Department is leaking information to the news media, He has not found out who it is. When he does, he intends to ask for the person's resigna- tion, In a news conference in the Hilton Hotel Kleindienst also: ?Defended the govern- ment's investigation into the Watergate bugging case. - ?Said his department is ,not ? investigating press charges that a presidential appointments secretary is linked indirectly with a figure in the, Watergate bugging case. ? ---Disconnted reports that the CentrALT-Aaie Agen- cy is linked with traffic in - hard drugs from Southeast ? Asia. '? ?Urged California voters to defeat the marijuana-decr- ? iminalization initiative, Prop. 19. ?Skirted a question as to what the federal government . would do if the. initiative were passed. ? Kleindienst held the confer- ence before, addressing the California Narcotic Officers Assn. at the Hilton. He told the law officers his ..department is proposing stricter legislative restric- tions on the granting of bail and parole, and mandatory jail sentences. for sellers of heroin and cocaine. Asked if there was any in- dication that persons in the Justice Department are leak- ing information on the Water- gate bugging case to the press, Kleindienst responded: "If you mean do I recognize (information) when I see it in, the newspaper, yes." Kleindienst suggested the press "curb its temptations" to get and print such.. con- Approved For Rel vr,:fricrts news leak In, ran fidential FBI tiles from the Justice Department.' ? .figucli of what you see hi an FBI file is rumor.. lienr?;ay and unsubstantiated gossip," he said: The attorney general said that, in the course of in- vestigations, law enforcement officers have to rely on people giving them leads ani. information which may be only rumor. He said that if people are reluctant to assist law-enforce- ment officers because their comments and rumor may be disclosed by the press, "law enforcement will be set back a long way," Kleindienst denied there is any footdragging in the in- vestigation or prosecution of the Watergate bugging ease, in which Democratic party officials have charged that high-level Republicans were involved in an effort to spy on Democratic campaign plan- ning. He said FBI agents and U.S. attorneys involved in the case are career professionals and largely Democratic party oriented. He added that he has taken an oath of office which he will not fail to uphold. Kleindienst said the best in- dication that the case is being well handled and that there are no political cover-ups is that no one has leaked any such information to the news media. Asked if any of .his agencies are investigating newspaper reports that presidential ap- pointments secretary Dwight L. Chapin is linked with a fig- ure in the Watergate bugging case, Kleindienst said "it hasn't come before my de- partment. No one has alleged anything is wrong!" The New York Times has reported that Donald H. Segr- etti, a California lawyer who has been linked to allegations of political sabotage, had 28 calls charged on his phone ease 2001/03/04 : CIA-RDP80-01601 R000200190001-2 RICHARD KLE1NMENST credit- card' to the White House ohice of Chapin, Chap- in's home and to E. Howard Hunt Jr., a former White House consultant charged in the Watergate ease. Kleindienst also discounted reports in a recently publish- ed book that the CIA is linked with the prUffieliOn and transporting of hard drugs in Southeast Asia. He 'termed the charges "in- credNe" and said they didn't deserve rin answer. wile CIA is no in. the business of fos- terir..-: people who engage in narenics traffic," he said. Of the California marijuana initiative, he said he is "abso- lutely, unequivocally 100% opposed" to the idea. He said that he could not imagine the President pro- posing it at the federal level. Kleindienst said "everyone agrees" marijuana is dan- gerous, that most of the na- tions in the 'world ban it and that "you just can't compare it to alcohol." The initiative would re- - move criminal penalties from the possession for private use , of marijuana for those per- sons 18 or older. The in- itiative affects only state law and not federal laws dealing with possession of marijuana. Asked what the federal gov- ernment would do to enforce its marijuana 'laws should the. Initiative pass, the attorney general said it "presents a pretty difficult question. There is 'a question of con- current jurisdiction. I hope that the people of California will not present that problem to the United States." Approved For Release 2001tcre OCT -RDP804Y1651101002 By CONRAD KOMOROWSKI ? Nixon's silence ? Democratic Vice Presidential candidate Sargent Shriver challenged Nixon's silence Tuesday on the Watergate bugging of national Democratic Party headquarters and the evidence that has piled up of Republican corruption, sabotage, spying and ? other misdeeds. This is one part of the enormous mass of cor- ruption and political gangsterism of the Nixon Administration in which an election campaign is -conducted like a war.. This grim war of political gunslinging proced- ures, CIA cloak-and-dagger methods, and FBI po- llee state style has the stench of incipient fasc- ism about it. It has its antecedents in the Nixon- ite political knife-wielding to stifle dissent in federal circles, the varying forms of repression of peace, civil rights, democratic and left politi- cal activities, ranginf from infiltration, widespread electronic surveillance, provocation to actual phys- ical extermination, as in the methods used against the Black Panthers. It was (he Nixon Administration and the Justice Department of John Mitchell, then Attorney Gen- eral, Richard Kleindienst, then Deputy now At- torney General, and Robert Mardian, then head of internal security for the Department of Justice and now a top figure in the Committee to Re- Elect the President (CREEP), that worked out the scheme to break up the May Day 1971 peace demonstration in Washington by unconstitutional mass arrests which netted 13,040 prisoners, many of whom were herded into a specially construct- ed concentration camp. Indeed, Nixon has a rea- son for silence. _ Ultra-ric4it plot . The Nixonites have brushed aside the exposure of their sabotage, spying and burglary activities in the election campaign as '.-political pranks," in the phrases of John D. Ehrlichman. Nixon's top adviser on domestic matters, on Sunday. Referring. to the Nixonites, Democratic presi- dential candidate George McGovern said Tuesday in San Antonio, Texas, that "These ambitious men will apparently stop at nothing to preserve their power." He said that they had conspired "to.forge let- ters, impersonate officials of various Democratic campaigns, incite riots, issue phony press releas- es in the name of others, withhold evidence from a grand jury, illegally enter the offices of the opposition party, steal private files and unlaw- fully ?wiretap the private conversations of Demo- cratic officials." The list is damning, but the Nixonites have gone further. They established a conspiratorial network which has sought to poison public opin- ion.. This network operated in a style and on the principles of the CIA seeking to subvert'a foreign government. Among its exploits, which include the plot to compomise Sen. Edmund Muskie in the primaries, particularly in New Hampshire, was the plot to destroy Sen. Thomas Eagleton. when he was named the Democratic vice presidential candi- date, by planting what is now generally regarded as false charges concerning alleged drunken driv- ing. Nixon has something to hide and that is why he has campaigned mainly by proxy. utilizing dozens of "surrogates." His press conferences are se- verely limited also, obviously to avoid searching questions. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL Approved For Release 2001isa3,./1045:1,91M9P80-0160 4. 9 OCT 1972 Whit house: No..Spy Director Here McCord Office Next: to -Muskie's By Karlyn Barker Washington Post Staff Writer ? James W. McCord Jr., one ? of seven men indicted in the Watergate bugging incident, apparently leased a K Street office next door to Sen. Ed- _ mond S.'.Muskie's campaign office last spring while Mus- kie was candidate for the Democratic presidential nomination. ? -At the time McCord was the security coordinator for the Committee for the Re- election of the President. The co-owner and an em- ? ployee of an optician's office on the ground floor of the building -at 1908 K. St. NW said McCord rented the sec- ond .floor office there in May or June of this year. The building's landlord re- fused. to ,discuss the. matter but-confirmed that a man named McCord leased the office. , The building is attached . to the one next door, at 1910 ? K St. NW, which served as ?? Muskie headquarters from January, 1972, until the last ' week in July when it be- came the main office for the - presidential campaign of Sen. George McGovern. McCord, a former CIA employee and FBI agent, has been linked to one other . spying incident in addition to the Watergate,. where he was arrested June 17, Fed- eral investigators say that while he was employed by the President's re-election committee McCord con- ducted an investigation of columnist Jack Anderson, apparently to yarn where the columnist was getting information critical of the ? Nixon administration. A spokesman for Muskie . said Tuesday that "every- thing we had to say (about campaign plans) was being ?said" at the K Street head- quarters. "The senator went in there frequently to make Leonard M. Gatti, land- lord of the 1908 K- St. building, said yesterday that it was his understanding that the second floor space "was to be used as an ac- counting office." Gatti said be never met the renter in P1,1-soil. Gatti refused to discuss the circumstances of the lease agreement or the dura- tion, saying only, "A man pays his rent. He get a key." - The Washington Post was told that McCord intended to use the office on K Street as a Washington branch of McCord Associates, Inc., a security firm he had opened in Rockville in the spring of 1971. Paul Pattyson, co-owner or an optician's office below the one rented through Gatti, told The Washington Post Tuesday that it was James MeCin?d who rented the office a few months after January when it was vacated by a landscape firm. "I know it was him. lie got mail here that had to he returned to the post office because he never picked it Up." said Pattyson. Pattyson said he was called by Gatti "in May or I think, and told the office had finally been rent- ed?by a James McCord. - Maria Musgrave, an em- ployee of Pattyson, said she once "loaned a key to get into the upstairs office" to a man who said he was jamc.,5 McCord. Miss Musgrave was unable to identify McCord from photographs yesterday.' She said she saw the man only once, at night. She said there was no evi- dence that anyone used the office during the day be- cause the mailmen and gas- men could never find any- one there. "I had to let the gas people in to read the meter," she said, adding that the up- stairs office showed no signs of being either renovated or occupied when she last saw it?before the present ten- ants moved in. Jean Ballosi, owner of the Owl and Tortoise Restau- rant around the corner from 1908 K St., said she leased the second floor office there about a month ago. "It looked just like a land- scape firm (that left in Janu- ary) with maps and charts still on the walls," she said, "but I've completely redeco- rated it now." . Renting a room near the target of a surveillance op- eration is a .standard bug- ging technique. The rented room is used as a monitor- ing post. In it. signals trims- mitted by radio transmitter bugs planted in the room under surveillance are Picked up and recorded. There is no evidence that McCord rented. the K Street office for . bugging purposes or that the, Muskie headquarters were bugged. STATI NTL phone calls to political leaders and discussions about whether we would stay in the race and what we might do in Miami took place thAppkWe'deFor Release -2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/03/04: CIA-RDP80-01601 STATINTL CHARLESTON, W.VA. GAZE WI m - 63,294 GAZETTE?MAIL S ? 106.775 Editorials Roads From t4:kr 04 'it How Far1)0:They-Run? With many of his associates hip-deep in the 81iille of Watergate, it is becoming increasingly difficult to believe President Nixon is unaware of the extralegal activi- ties undertaken in his behalf. If it is difficult to excuse the President, it is well-nigh impossible to assume that highly placed Republicans very close to Mr. Nixon have no guilty knowledge in connection with the mounting evidence of, immorality and. crime. Many of the roads from Watergate lead. directly to the Committee. to Ite-E-. lect the President, which was beaded by former Atty. Gem John Mitchell up until the day his wife, Martha, began publicly to denounce some, of the dirticr.and more frightful aspe.e.ts of the political world into which she had been .thrust. Mrs. Mitchell's sallies ceased being funny, or newsworthy. She -,was .whisked from. view. Simultaneously, her husband resigned from the committee.. It is inter- esting to note that the hasty retreat of the Mitchells followed upon the capture of the Watergate adventurers. The disappearance of the Mitchells has done wonders to stifle _public interest in . the Watergate -affair. The names that now pop up daily in connection with the words. But they are important names, nonthe- less, in a Republican administration that assumes a virtuous face whenever cal espi.onage is mentioned. One such name is Dwight L, Chapin. Who is Dwight L. Chapin? He is the President's appointments secretary, a man who meets almost daily with Mr: Nixon. Now comes Lawrence Young, a Cali- fornia lawyer, to tell . us in a sworn statement that he was told by a client, Donald H. Segretti, that "Dwight Chapin was a person I reported to M Washing- ton." ? Who is Donald H. 'Segretti? He is a man who has been identified by federal investigators as one of 50 undercover operatives engaged since 1971 in a mam- moth spying and sabotage offensive by Nixon aides- against Democratic presi- dential candidates. Segretti, the same federal investigators assert, was paid for his activities from a seeret cash fund kept in the office safe of former Secretary of Commerce Maurice Stalls, finance 'chairman of the Nixon campaign, The sordid case has many ramifica- tions, The California lawyer also swears that Segretti said he, Segretti, received political sabotage and spying assign- ments from E. Howard -Hunt. - Who is E, HoWard Hunt? He is ?a former CIA agent and a former White House aide who was among seven then indicted in the Watergate bugging case. The White House piously declares its innocence, but regardless of the angle froni which the case is viewed the White House winds up smack in tne,middle of t. If the public seems unconcerned, it is ' tribute to the propaganda efforts of the :Grand Old Party,.? If Mr. Nixon: is totallyunaware of the :7-? activity of his ?troops in the field, his , indifferent reaction suggests that he is, at best, amoral, and that his "law and ? order" rhetoric is comically hypocritical. We don't care for the unsavory people with whom Mr. Nixon has surrounded . himself. We hope the American .voters will be shaken into 'a determination to look closely at. evidence of political foul- ness that would do credit to 19th century ? European despots. The voters would do well to rid them- selves of the Vicious, and un-American 'political apparatus deliberately organized for the sabotaging of the American sys- tem of selecting national leadership. The way to rid themselves of the apparatus Is to rid themsedves of . the cynical Re- publican Rd ministra tio'n ..Which fostered. ? As incredible disclosure follows upon disclosure, Sen. George McGovern stands out in sharpcontrast. The best saboteurs and spies Republican money could buy have been. able to bring against Mc- Govern. only the most trivial accusations. The most damning of these is that George McGovern sometimes changes his mind on the issues. If Republican espionage has demon-., -strated the depths to which .the Nixon :team can stoop, it also has been the ironic means by which George Mc- Govern's virtues have been affirmed. Approved For Release 2001/03/04 :,CIA-RDP80-01601R000200190001-2 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL JERSEY CITY, N.J. JOURNAL OCT 1 819721 E ? 86,224 Slugging ? Now,: there, are only 20 days until: electionith 'sides have teed off,diic the media. Both skies are shouting fouL It has been too long a campaign.Tem pers are thinning,. But the campaigners are much more impressed with:. their. own charges against each other than the voters are. It should not be forgotten that the public has been conditioned for a long time to look upon cloak-and-dagger stuff. as entertainment,- One cannot watch "Mission Impossible" week after week, with the electronic genius. Greg Morris bugging roorns and installing one-way mior..\,vindows, without getting to take such things-,as a Matter of course. The reaction to. - Watergate ?was less that it wa4 unethical than that it was done clumsily.; 'Greg neVer is inept. 461,,pio-Nixon,.CIA4ype counterforce was aS" logical a develOpment as Man from U.N.C.L.E." in view of the pro4Vic.Govern str eet revolutionary types :which ,published a detailed out- line of how to wreck the Republican convention in Miami and the organizers who utilized McGovern telephones to round -up recruits for an anti-Nixon demonstration on the West Coast. ? And who wrote the ?Canuck letter" ' which .a New Hampshire newspaper ran without checking; causing Senator- Mus- kie to weep in a Manchester street, will be -argued for a long time. It certainly sabotaged Muskiebiit Whom did it help? ' Nixon? Or McGovern? ?-:The point is that skullduggery goes on: In 'all. political' 6ampaigns----even in 1?64 Yearinpaigns although not on so sophisticated a scale.. Certainly it is not the way to run an election Campaign but the way Americans run all aspects of Einf election campaiobn-may not be the b6t.,,ay, either. TIie telltale is that both sides are shouting' "Foul!" and Un- doubtedly.both arc right. The 1972 campaign might make a Approved For ROit0LifigkgiqrsV thp9?15-81i qol R000200190001-2 Approved For Release 2080984 FE1-RDP80-01601R 18 OCT 1972 ?I Segretti Is Linked to Calls To White House in Spring BY STEVEN V. ROBERTS Special to The Nes York Times LOS ANGELES, Oct. 17?Donald H. Segretti, the man identified in news reports as a key figure in a campaign to sabotage Democratic political activities, has been linked to a number of telephone calls made last spring to the White House and to the home and office of a man indicted in the Watergate bugging incident. .? Some of the calls were made from his home telephone and others were charged to his ,credit card. The New York Times has learned that at least 28 calls were made to the White House; to the home of Dwight L. Cha- pin,, a close aide to President Nixon, and to the home and of- fice of E. Howard Hunt Jr. Mr. Hunt, a former White House consultant, has been indicted in connection with the break-in June 17 at the headquarters of the Democratic National Com- mittee at the Watergate com- plex in Washington. News reports have alleged that Mr. Chapin and Mr. Hunt served as Washington contacts for Mr. Segretti, a 31-year-old lawyer who several persons have said tried to recruit them for political espionage. . I Mr. Segretti denied the initial reports concerning his involve- ment in an espionage campaign but could not be reached for 'comment on the new informa- tion. -, Spokesmen for the White -House and the Committee for the Re-election of the President have denounced the press for printing articles based on what they call "hearsay" -and "innu- endo," but they have neither denied nor rebutted the mate- rial that has been published. Mr. Chapin and Mr. Hunt could not be reached today. Ronald L. Ziegler, President Nixon's press secretary, said that he had "no knowledge" of the calls to the White House and "no idea" why they had' been made. The Times has learned that at least six calls were made to the White House from Mr. Segretti's phone or were billed ? I but several have said that he told them he was working for to his credit card?one in April ;President Nixon's campaign. ant five in June, the last on J u day confirmed that i was MI% Chapin's home. Two Calls to Home On at least 19 occasions from March to June, the unlisted number of Mr. Hunt's office at Robert R. Mullen & Company, a Washington public relations firm, was called from the Se- gretti phone or were billed to him. Two calls were placed in that period to Mr. Hunt's home in Rockville. Md. It was not known who par- ticipated in any of the tele- phone calls. The calls to Mr. Hunt's home and office stopped shortly be- fore June 17, the night five men were arrested in the offices of the Democratic National Com- mittee at the Watergate com- plex. Mr. Hunt was not among those arrested that nig,hi, but he was immediately dismissed by the Mullen concern, for - which he worked as a writer. He was later indicted for con- - spiracy in the case. Mr. Hunt worked as a con- sultant to the White House in 1971 and 1972 mainly on do- mestic affairs. The White House has contended that he last ? worked there on March 29; some sources say he worked through June. At least two of the calls from the Segretti home to Mr. Hunt's phones were placed before March 29. The Times has not been able to learn about any phone calls made from Mr. Segretti's phone before mid-March. Last week, the Washington Post first named Mr. Segretti as an important operative in what it described as a broad cam- paign conducted by President Nixon's re-election committee to disrupt and harass Demo- I cratic candidates. At least eight persons around I the country have told The New 1York Times and other newspa- pers that they were approached by Mr. Segretti and asked to perform undercover work of various kinds. Most of them I said they were not sure whom Segretti was working for, tin 1 cick irtieltiOaS c 0-# Akivieg mn Time aazine been paid more than ,.3o, Maryland was called. A woman who answered that nhone to- magazine, Justice Department files show that the money orig- inated with the Committee for ?the Re-election of the Presi- dent and was funneled to Mr. Segretti through Herbert W. Kalmbach, a California lawyer who has often represented President Nixon in his private affairs. According to various ac- counts, Mr. Segretti's work included such activities as obtaining secret information about Democratic campaigns, planting false stories about rival candidates, distributing bogus. literature, ? and gener- ally fomenting trouble and discord among contenders for the Democratic Presidential nomination. Classmates- in College Mr. Chapin and Mr. Segretti were college classmates at the University of Southern Califor- nia in the class of 1963. While 'there, they joined in a campaign to overthrow the political. pow- ers on campus. Mr. Chapin also worked for Mr. Nixon's unsuc- cessful campaign for Governor of California in 1962 and appar- ently recruited Mr. Segretti to work in that campaign with him. Mr. Chapin ha served Presi- dent Nixon as a personal aide and appointments secretary since the Administration teak office. Lately he has concen- trated on political activities. Mr. Hunt had a colorful ca- reer as an agent of the Central Intelligence Agency and as an author of mystery novels before he went to work for the Mullen firm and the 'White House. Washington sources have iden- tified Mr. Hunt as a prime or- ganizer of the Bay of Pigs inva- sion against Fidel Castro's regime in Cuba. After graduating from law; school in 1967, Mr. Segretti spent four years as a captain in the Judge Advocate General's Corps, including a year in Viet- nam. He left the service in September, 1971, and has lived in Los Angeles since then. /04 ,e0im P80-01601R000200190001-2 for his work. According to the Approved For Release 20CRIti#/DP80-01601 sonny?I am not a CIA agent!' Approved For Release 2001/03/04 :.CIA-RDP80-01601R000200190001-2 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Available Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Vi'AS1-11 WYNN POST Approved For Release 2001/03/0tT CdfF-RDP80-01601 .i..ii...L..1117-.!''.7 6,1.._}. 'ft :::-1 .., . ' 4 ' ,1 i.s: , , (...., i'';. i -11 CT, .',,i,:k..,%- k7111,, ,_I:\ , . 1,4.--, /3 ''''.....,/ kj ''',...,,i,j .., /.. LI. 1,) ...;..',... ',L,,, 'i.,./..iLli..;L..;?:..;.,.',.. ' tk,M.',L.11,-,. By Lou Ca !MUD i here. and I say the American now being used against Ameri- WashivtDn Post Srlil ,.'..rtf.r 1 people will not tolerate ii.'' l' cal'i"s- st. .., BUFFALO, N.Y., Oct. IGH Shniver's speech il , wd ib at 's ft mo un 1nieri- ly, ' t - - , - i , The Nixon administra;ion Is, eneered by a partisan ,peneci ce inl in ll h e- crowc ? . -,,, can development that s hap. using CIA tactics on .\inerican of 400 tiat. jammed the Cheek?Htime, and perhaps over," ', rtay iy t citizens, Sargent Shtiveri towaga (Bnic County) town shriven sail.He concluded his charged today. , i , ' hail, was described by one or-. speech with a personal attack In a reference to reeent oe?I nis aides as a calculated effort:00 Prosjdont Njx0o, whom VelOPInelltS in the Watergate to make people think of the ! shriver compared to a "loop- burglary ease and to the CIA! Watergate issue Jul terms of its i background of some of die de.; "Big Brother" espionage ci-!spois," I feels ? ,, lard that doesn't change it's .fenclants, Shriven said:i on the. ,.\ merican people I "He's still the same NiNtail " "T II e y 'r e perpetrating rather than as simply an k;U(2 !he always was," said shriven against the American pi oplc ill Wiliell 011e pOliliCiln does ;olio may dr,..,.ss like a pi.esh the same techniques that. dirt to another. , I dent, look li ke a President, America used ttqtainst. the Rus- The Deirm(Tatic vice Prcs'.!tnIfi: like a President, act like a ? sians . . . they're burglarizint::, dential candidate himself cm-Hyesident, ?.?jk like a prem.. in the micidie of the niaht, 1111- phasizecl this point and took ideni_but its still :Nixon." planting electronic bugging cognizance of the fact that devices, forging letters, bid b., many VOIOIS have dismissed ing people and then sending the Watergate affair as simply covert: information, it appears, being typical of American pol- right up into the office of the itics. White House, the President's But Watergate 1.s different, office itself ? . said Shriven, "in a very seri- "This is the introduction ous and ominous way" because into the life of the people of it shows that CIA techniques America of covert, subversive which have been developed to 1 Ai activities of the type that. have counteract the Russians, the ' only been Permit ted outside techniques of "espionage, brib- the United States, That devil ery, cajolery, falsification of is coining back to corrupt us records, disinformation" arc 9 STATINTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 1) VIVI.Silit-GTO POST Approved For Release 2001/03/04 : C14-RDP80-01601R 1.7 UUT STATI NTL `1-11"to Tilierry,47,....111 411.1VA 1:-..-?, v,/ 7.! (1,,,,,sit ,?-?,?--,-1.-", /3 ,r,,,r-b,.,,77)(,-0 e.,,,;::!;! ii 6 ..iz. (4 '.1.1 ',... ,fz.*.r.,-,4 A 11 .' .,. r'.11; tr7b '11 q' 1,7) (7 '',,!: 1..../ (1,.(,11 (1.--/ ''4,-,1 '-'2,./1 ,,,,, .c, -,,,,,.. o , :, ,-, ,,,,: j,:, LI v i--.....,.?. 11- 1771 0 7 lit!' t.r)LVs,r IL 'rrY-iir.f.',E.11...-''.72. z/ 1.1v A land 07. ,..., shut off our sources, 1 burning to dramatize how they copy of the actual study, which Jack- ndeotort ; A host of investigators par- were cooperating with the U.S. speaks more than five timet; Men inow -- 1 e 'r dull'i relish i ICP ll ed in the project. Gov- crackdown on drugs. We re- of the violent effects of 'laser I) i\ their cozy relation- ,ernment a g e n t s , cc ,ti ported, however, that the\-beims on eyeballs. Twice, thit ships exposed, and tlicir, cites "massive blast" thronh binoculars. from a really burned cheap fodder study sources of money bared, a11(1 nearby knoll, staked out my mixed with opium effects; in another place, if their errors and (111)111 ill house. with ,,,,,,ikici ki, li chhi-i... tells of a "IllierC)-:.iXPIOS1011" Ili. ,aeS, NiX0/1 aides r,:cnt to ments publicized. .they directed waiting govern- rate lemoits to knock th,,?the eyes. The water fluids in It is not surprising, 1114lieHment security cars to tail me sfor v. do ii They prepared the ?Yes, ach-ls tl-ki stud, would fore that the NIXOn Ad1111111-'1" wherever E went, sources in... 'rise to about 100 degree-3 pages of refutation for the ' ti ation doesn't like this cols' side iiic ,tustice Dep ii press,the boiling 1111111, So the President's dirty . set up a movie of the.C.-entil:5,racic" --- provided me with the descripslopium burning and produced Poin?. tricks department tried to .tions and license numbers an "expert" to testify how. Although we had a copy or wrojp, we Were. Not onlY the study, we also contacted play a few tricks on us, . of the cars. So it didn't. take] "'. 'narcotics officials but 1Vbite co .,U- Force researchers at The dirt,v, tricks operation,l.lo.ig to loct-tte them lurking in 1 illiouse and ,Tustice Department ' otherwise known as the "?f" hiding, places near my home. 'aides were involved in the right- Patterson Air Forco fensive Security Program of -,., y ., ,?r(1.'0 . . arrangements. 'Lase where the research vim the Nixon Forces," was estab- -leC But thanks to our advance. reviewed. They would confirm. -1. HIT"t ? - , associate.Lea wytte - only that they had been in- lished chiefly to bewitch mull The President's campaign befoul Democratic presidentiaBsecurity chief, James W. M.c- showed up at the Press on vOlved in elas'ifii'd rc'sc"Irch- o illser weapons, ferenee with a stack of secret candidates. lit was funded out ?Cord Ti joined in the invesd Finally we located the oily.. CIA documents and detailed" ,.. sician-researcher, Dr. i lliito'n' of a secret, fluctuating Itepub--tigation. In. an "interim re- notes from other doL'm .. om:its. , Bean slush fund, ipoet" to the White House, he lie quoted evidence right from tiara, who directed the study The Washington Post has accused me of "close associa-the government's secret files for the Air Force'. To rnal:o Siire charged that the dirty tricks tion with the operating arm that the Thais had burned . our story was absolutely included forging phony letters .of the Democratic Party." fodder instead of pure opium. accurate, we 1."(1 it hack to to embarrass the Democrats,lironically, a Democratic Party An administration spokesman !him \vurd-fur'wurd. nic sugge' leaking false information to spokesman later accused me sheepishly admitted that Uncle tech a few minor technical the press, tailing family meni-of close association with Me- Sam had paid a cool $1 million changer., which we made- hers of Democratic, preside . After Air .Force Magazinst n- Curd's operation after we pub- for the ashes ; ' ,... tial candidates and throwingHlished an embarrassing memo I called our story false, 10 Air Force Attack reached editors Claude Witzo campaign schedules into (1.15- from party files. array. I Sources inside the White More recently, the Pentagon and john .hrisbee. Tne attack The Watergate incident? ? Douse, meanwhile, warned us furnished the editors of 1.j!' on US was wri?Iten by Wilzu b r e a k i n g into Democratic. of attempts to discredit the Force Magazine with material who admitted he had never s a Party he tappimf, cob no 'Not long after ward, for a blistering za een the study he ccused INt,..ick on us. , ; party leaders' telephones amid the Bureau of .tiareoties and They challenged our report o' u hsraill6enting. :.Th also Oil ha.d never ti id to rea.eh tha stealing party documents?was Dangerous Drugs called a ihout Ah' Force research s, pt-trt of this sordid operation. ,press confer ce. en We were a laser n bem that would ex- cientist W110 pr epare d it no - in our ease, the dirty tricks tipped off that; the bureau plode the eyeballs of enemy for that matter, had he bother , 4o seek our side of tha ,ca c were pulled by political opera- would challenge our story soldiers at a distance of more ,c tires and government gum- about Thailand's great opium than a mile. Blinded soldiers, s'm'Y' the research noted, would be' "My understanding \v is tha?;', shoes allice. Lu ii objective,:hoax, apparently, ',I'm; two-fold; CH; l(the Pentieon Ver 'i011) Wi''' It: The Thai an with more of a burden to a fight- ; . emit icon - '-' a - `'' " to discredit the column by I considerable w h o op s d e - d o o ing force than dead soldiers. Iwilule P"elz"ge:' s"i'l ''Vit"e' I"I rely.on them fairly heavily." undermining our credibility; staged a million-dollar opium We . based our story ,- on 'II - , 6 1972, United /..C.catil'e 8S11,11cate Approved For Release 2001/03/04 :.CIA-RDP80-01601R000200190001-2 i.! lASHHiGT0N O3 on' 172 Approved For Release 2001103/04: CIA-RDP80-0160 STAT I NTL Nouse and the Watergate?al rimh, meGorerii cilara,e 'Plie Post hitc'\'''s?'-md, Sen. Muskie, about alleged ItnIcs"--a local half dozen investiaations have campaign disruptions, while ,newspaper. found---to be false," ft proven facts of oppo!,it ion-in. I Sen. Dole, MacGregor and a statement issued last oiled di,:i.uptions of the prem./Ziegler all sought to tic The night, Benjamin C. lira:Hee, campai,,,,rn are buried reporting to sun George executive editor of Tila Post, deep inside the paper:, 11\?JcGovorn's presidential earn- Said; "Time will :111-IP2.0 bc- 'Ire cited fircdama re and I Paign, charging?in Dole's I tv.(1'1 a r h-. window-breaking incidnt e at "given straits in which the McGovern i ti? p,,,,,,tSTATI NT words?that si, I ;.,i) f ;! 1 Ii_111) *es- ?-t ? ; , ? CI ar tx TN; r _ (77.:' F. " hut cc fin. the Re-elcvlion of them, The post is investigating the Preaident. CWS i'al v 0 1.",;,e3 .the incidents. ,, "f'or nca,v it is enouh to g say ,- , ?- - rairner, at thc daily moi-n- / C"' TI-- - ? that not a single .1-c-t con-- 11. 1,11 'ail 0 i i't..!..'"..e . mg White Ilonse- taiiied. in tbe investi,s,alice re- .- ? ? . -, briefing, Ziegler said, "I will not dig- - ' -, by this 11(!,,VS0r0),1' r !;"? [al Tr,,.,,,,, portut, - . -. ? - - . ? ` nifv with comment stories u..11/4.4.? .; V r....i .1.J. ....,:_ii.1 a tan about It ese ael.m tic,, 1--,m., aeon - ? ? - - - based on hearsay, character e -auicksalver undo' f.r.round )press releases and Tide, V,1)S11- r . ington Pest 'S reporting of the in cities and a;aked why various activities of the Com- The ? canmaign headquarters By Carl Bernstein and Bob Wood \yard v,a-asal.atoa. ',cat seat writers ? PrcSitient NixOn's cam- paign Manager, 1-iiS pness secretary and the. itenubli- can National Committee successfully challenged." assassination, innuendo or Bradlee added: "MacGrestor 'guilt by association," a.dding, and other hig,h administration officials have called these stories `a collection of absurd- ities' and The Post 'malici- ous,' but the facts are on the. record, unchallenged by con- tary evidence." chairman rondo separate at- In the past week, The Post tacks OR The 'Washington has linked the President's ap- post yesterday for "is coy. poinimeots secrelary, another White House aide and the Chag,e he Watergate bug- President's personal attorney ging incident and an alleged ;. to the alleged spying and sabo- Republican spying and sah- t'age campaign. MacGregor read a three- otage operation ag?ainst the page statement at the 5 p.m. .Democrats, Tho .attacks, coal a Ming similar language, were made by Clark MacGregor, Mr. ,cainpaign finds itself, Mr. Mc-; t Govern appears to have turned !over the franchise for his i ;media attack campaign to the! !editors of The Washington i !Post." Dole too referred in his! ispeech to the l'entagon Papers! H?ano at one point referred tol eorge McGovern and his partner-in-mudslinging, T e; Washington Post." "That is the White House pa At MacGregor's Pres.s con- salon: that is my position." ferenee yesterday, Clark Mot-- zie:Jorsi-as ?ked if -prem.. jenhoff, a reporter for the Des dent Nixon is concerned about !AlcUles negistcr and Tribune and a former special assistant tile increasing, number of news to President Nixon. was an- gered that MacGregor would not answer questions. "What credibility do you have?" Mollenhoff inte r- ? "The Presiftrit is concerned 'minted. "What documents about techniques being ?1)-ise you seen? Because if you plied by the opposition in the , can't tell us, you have no right stories themselves . .," aud- to stand there." ing;at another Point: "The 0P- MacGregor replied: "That. reports containing charges of corruption and unethical cam- paigning by his administration. The press secretary replied: position has been nicking will be a matter you will. have press conference and refused charges which are not sub- to dc.termirie in consultation to answer questions because stantiated; stories are written with your editors." He then of "the unusuat developments which have not been substani. read his three-page statement, of the past few days," His dated." two pages of which were de- aides had said earlier that he Ziegler said that the Presi- voted to The Post. Nixon's campaign manager; would answer questions, dent continues to have "con- When he finished, he walked Ronald Ziegler, the White Referring to the Post's Pub- fidence in his staff." including from the conference room house press secretary, and lication of the Pentagon Pa- Dwight L. Chapin, his appoint- with reporters shouting ques- P1 r. and the seven me Kansas Sen. Robert J.Dolealta-:- ? - n who ments scerelar,y. Chapin was dons at him. . have been indicted in the bug- named in accounts by both the Molterthoff 'got into a dispute the GOP national chairman. - grog of the Democrats' Water- Post and Time as a "contact" earlier this month with Ziegler for Donald II. Segretti, whom about what Ziegler said con- federal investigators ha v e cerning the Watergate bugging "While The Post itself open- "innuendo" and "unsubstan-, identified as one of more than being financed by Mr. Nixon's tinted" charges relating to the IlY and actively collaborated! 50 Nixon undercover opera- re-election committee. Watergat.e investigation, Iin the publication of stolen i lives engaged in sabotage Mollenhoff quoted Ziegler in Neither minciregoi. nor itop secret documents of the against the Democrats. The a front page story on Oct. 6 Zieglertg,overnment of t h e Unitedl would respond to re- Time account also said Se- as saying: "There is no ques- porters' questioning about the ;States 1.6 m_onths ago -,--- t?'il gretti had been hired by Cha- tion but. that the money came specific allegfttions miide in chaY, it is "mg I butt-age at. sonic 0 OV ions vol-! . ,S 19e1- ari, i I:)in and another White House from the committee," Thic Post's stories. im teers who were aliceedly. :aide, Gordon Strachan. Ziegler later denied making The attacks were in reactionta-t ?.- ' ? - ?''? - Sen. Dole's attack on what the statement, and Mollenhoff The ,FilVi.rig on (former Democratic to reports?Tarried first in he called -political garhage" said he wouldn't, back away Post, then in the New....or, ') 1 (_, ? ina.f.m.nal" cilair man) ll. a r r y printed by The Post and 01 1101' from the story "one bit." Times and Time mag e rizin--,:r -Ileturn on s ri omp to the. , unnamed publications was Although there have been ingca 1.11111. the FBI's investiFt-dion of t ;lie. said at, another point that made before. an audience of reports linking Nixon cam-. the Watergate ease had un- "While, . cdch climi e s reprehen- '-' black Republicans in Washing- paign funds to the bugging,i COVered a spying-and-sabotage Isibta v.?,,,,, a., iaa sma,,.! ca,,. ,ton. Ziegler 's all e go d statementt camp:lig-it against the Demo-- jous`,,' st'o'aTil'Ito7sec"3"-c',`t`do-(`', "Thus far, there have been would have been the first. of- CrOS, allegedly directed by top f the nents C11011/1011S headlines about ficial acknowledgement that i o government of the presidential aides. political disruption and very, the Nixon n committee financed In a prepared statement re in litical act United States; or allegedly steal- little proof," he said. "In the the eavesdropping, g Larry O'Bien's to reporters, MacGregor n mc-? r po papers? ? , final days of this. campaign, The SOVC11 men indicted in I10110C1 0/11Y 1 10Post h mim y e' .... ., ' like the desperate politicians the Watergate bugging, include ,\I'lcGrogor Th P t and said . . . "The Post has - '''. accused e es- whose fortimes they seek to ? -- ? - of "hynocrisv" and a "celeb ai- appearance of a direct: con- maliciously sought to gi,"e. the -- , , -- ' - 1? save, The Washington Post is ted donut? standard (that) is rondlletinfalf_ I, ? ? ?,-i betwAp proved tF tpq Mpr 3o Q41203/04s Ci cG I.A.APIPW 'unprovenjeause i,ourVigRoo02%0011,1880,0101 nection. mass resignations on Their statemenk accused The gate headquarters, illaeGreg- Post of printing "hearsay," or said: CHARLOTTE, N.C. opsERVproved?For Release 2001103/04: CeArRIEPMQ-01601 M ? 174,906 S 204,225 OCT I 6187Z, ? xon. From observer wire reports WASHINGTON ? President . Nixon's 'appointments secretary was linked to the alleged polit- ical sabotage of Democratic campaigns in separate stories Sunday by Time Magazine and the Washington Post. Time said Justice Dspart-,, .ment files showed that Dwight L. Chapin, 31, deputy assistant to the President, hired Donald Segretti, a Los Angeles -lawyer who once worked for the Treasury Department, "to subvert and disrupt Democrat- ic candidates' campaigns." ? The magazine said Nixon's personal lawyer, Herbert Kalmbach,- paid Segretti more than $35,000 from Sept 1, 1971 -juntil March 15. ? The Post said that Lawrence Young, 32, a California lawyer said in a sworn statement that Segretti told him: "Dwight Chapin was a person I report- ed to In Washington." The Post 'quoted Young as saying that Segretti told him he got his . assignments from E. Howard Hunt Jr., former CIA agent and White House aide who was one of seven 'men indicted in the alleged bugging of the Democratic Na- tional Committee. DeVan L. S is u in w a y, a spokesman for the Nixon com- mittee, disclaimed the Post ar- ticle as "a piece of fiction." Tithe said the Justice De- partment began its current in- vestigation involving Segretti based on a record of telephone calls between Segretti and E. Howard Hunt, one of two for. mer White horse consultants indicted in connection with the break-in last June in the Dem- !. ()evade National Headquarters at the Watergate complex in Washington. 9 The investigators later dis- covered that Segretti went to Miami last spring to meet with hunt before the Water- gat.e.incident, Time said. Presidential aide John D. Ehrlichman said Sunday that published reports purporting to link Nixon's appointments sec- retary to a political spying and sabotage operation were "hearsay about four times re- moved." ? The presidential campaign' has entered the "mud month," said Ehrlichman as he re- sponded to questions about a story in Sunday's Washington Post that appointments secre- tary Dwight L. Chapin served as a contact in an operation aimed at the Democrats. Ehrlich man said he had no , knowledge of the purported undercover sabotage campaign so that "I can't affirm or deny" any Chapin role. But said it appeared to him it was an instance of "a lot of changes" and not much, proof. Ehrlichman was interviewed on ABC's TV-radio program "Issues and Answer." Roth Time and the Post said that Segretti's salary came from a secret cash fund of $350,000 to $700,000 kept in the office of former Commerce Secretary Maurice N. Stans, now- finance chairman for the Committee to Re-elect the President. In anothdr report, Newsweek magazine said the goal of the Watergate raid was to create a mini-riot at the Democratic convention by issuing fake Press passes. The magazine quoted a ; source close to the investiga- tion as saying that when James W. McCord was arrest-i. in the Watergate building be was Carrying a sheaf o ? applications for college press passes. The White House said Sunday it had no comment on the re- ports. The Post said Chapin issued a reply to its story through the White House press office saying: "As the Washington Post reporter has described it, the story is ? based on 'hearsay and is fundamentally inaccur- ate." The newspaper said that in ? Miami Beach, 10 days before . the Republican National Con- v en tio n, ,presidential aides briefed Segretti on what to tell a grand jury looking into the matter and assured him that federal prosecutors would ask "easy ? questions." Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 200410311M l'ZtAc-RDP808(11601R0 16 OCT '1972 \Taxon.95 iiraTleagar. rt Assurances from the Republican na- tional campaign committee that the Wa- tergate bugging incident was an iso- lated case of bad judgment on the part of a few overzealous partisans are no longer acceptable. Neither is further silence on the sabject from the White House. The matter must not be left to fade into the distance on bland assurances that an investigation has been made and on a few lower-echelon individuals sacrificed as scapegoats. Investigating news reporters have turned up too much evidence that de- mands further explanation. The daily emerging picture is one of an unprece- dented political espionage setup, fi- nanced by campaign contributions (in- cluding $100,000 which the FBI has in- dicated was a carefully disguised illegal contribution from a Texas corporation via a Mexican bank). The spy system is apparently staffed by professional for- V mer FBI and -CIA men,- and has sent regular reports of Democratic campaign activities to top staff echelons of both the White House and the Committee to Re- elect Richard Nixon. These allegations and more appeared In an interview given the Los Angeles Times by Alfred Baldwin III, a former FBI agent, who told of monitoring wire- taps for three weeks at the Watergate Democratic national headquarters. Mr. Baldwin also told of being paid hundreds of dollars in crisp new bills by James McCord, security chief for the Nixon campaign committee. The payments .were for his wiretapping surveillance, and for acting as bodyguard for Martha and John N. Mitchell, after the former attorney general had left the govern- ment. He tells of being given a snub- ti nosed .38 police special, although he had no permit to carry a gun, and of being assured by Mr. McCord that if ques- tioned by police Mr. McCord would take care of it. Such stories blazoned across the front pages of nationally distributed news- papers, if without foundation in fact, would bring forth instant lawsuits for libel. Instead there is silence. Mr. Nixon claims to have investigated the Water- gate matter more thoroughly than he went into the Hiss case years ago. Yet it took the newspapers to bring out details of a political fifth column operation dealing in sabotage, theft of confidential files, publication of a forged letter that contributed to the wrecking of Sen. Ed- mund Muskie's bid for the ? presidential nomination, and spying on Democratic candidates and their families. The combined novelty and in- sidiousness of this departure in political campaign tactics makes it incumbent on President Nixon to come out and publicly denounce and renounce them. Success in sweeping this affair under the rug would be a failure for the American political system, the machinery of which has known all too much corruptive tamper- ing. Public cynicism and apathy, already too apparent, would be fostered and the working of the democratic system fur- ther eroded by a whitewash. Harry Truman, who had his own prob- lems on a smaller scale with five per- centers, once observed of the presidency that "the buck stops here." As head of his political party, the President must now accept that burden. He is under obliga- tion to the people and to his party to speak out frankly, to give a full accounting of the whole affair, and to state precisely how he plans to correct it. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 THE NEW YORK TIMES MAGAZINE Approved F or_Release_200110/621t ? 61X-R D P80-01601 R00020019000 ENcept gor et farnous ? -- rty Sherwood D. Rohn tsti rs3 -.171 F., 4 ri aess,kJLJ r i. ,:c4' J ks?asa A ?e;.,,Ve r-1 1- (Tcl c-.1 STATI NTL F LeA) _ WASHINGTON: On the sixth floor, police caught five clumsy conspirators, reputedly linked with the Republican party, trying to hug Democratic Na- tional Committee headquarters. On the seventh floor, Martha Mitchell raised hell by telephone. On the 14th, thieves burglarized the penthouse owned by Rose Mary Woods, President Nixon's private secretary. And in United States District Court, a group of apartment dwellers?claiming to speak for some half-dozen members of Congress, sev- eral Cabinet officers, the directors of the Voice of America, the Agency for International Development and the .United States. Mint, at least one am- bassador and the president of the Na- tional Academy of Sciences ? filed suit. They alleged that their luxury housing in the same building, the most expensive in town, was afflicted with ? faulty kitchen appliances, cranky air- conditioning, temperamental plumbing and a plethora of damp flaws in walls, .windows and ceilings. In short, the sound and fury emanating from the site of all these goings-on .has often involved prominent or powerful per- sonalities, has usually been highly audible, and has frequently received attention in the press. There is only one place in the world, outside of fiction, where such a pre- tentious pot-au-feu of news and news- worthy people could simmer so richly and continuously in such a compact vessel; Washington, D.C.'s Watergate complex. The six-year-old, $78-million, five-building cluster of ostentatious high-rise apartment, office and hotel units is anchored on the Potomac River bank next to the John F. Kennedy Center for the Performing Arts, just upstream from the ceremonial steps that inspired the development's name. It is not quite complete today, a dozen years after Italy's giant, 114- year-old conglomerate, the Soden Generale Immobiliare, first approached the Washington architectural firm of Fischer and Elmore about developing the old Washington Gas Works prop- erty in Foggy Bottom. The Watergate was the first complex built under the District of Columbia's Article 75, an ma. umr,eirW innovat've zoning ordinance designed to encourage urban redevelopment in general and combined living/commer- cial area's in particular: places that would interact with the city but take the agony out of urban living. The Watergate has indeed eased city life for some 1,500 affluent Washing- tonians, among them about a dozen Senators and Representatives; the Postmaster General; at least two Cabi- net members; the Treasurer of the United States; the Directors of the Census and the Mint; a pride of am- bassadors, judges and other high-rank- ing Government officials, and sev- eral millionaires. Almost everything they might require for effortless sustenance is available on the premises. There are four swimming pools'?one of them :ndoors--a health club, Ore( psychiatrists, an internist and a den- tist. The Watergate's sunken mall easily accessible to all the building, and soothed by the sound of wat? pouring down a graduated series concrete dishes, features a wide variety of shops, as well as a Safeway super- market, a limousine service, travel agency, bank, two restaurants and a small post office that looks, rather surprisingly in these surroundings, just as sterile and pale green as any post office in the United States. Only two of the buildings?Water- gate East and West?are devoted al, most exclusively to coopera- tive apartments; the Water- gate Hotel and Office Build- ing form a totally commercial unit, and the newest building, Watergate South, is divided into office and residential sec- tions. Underlying the totality is a network of walkways, tunnels, corridors and malls where people can shop, eat, park their cars, reach any portion of the agglomerate without surfacing, and al- most invariably?get lost. "The Watergate is built like a rat maze," says columnist Art Buchwald. "If you walk out of a door inside the build- ing, you're trapped." tive and Democrat in a bastion where the tone is set by Republicans, says that the Watergate is decadent; that the people who live there are Prisoners - of their own de- fenses. And indeed, there does seem to be a Marienbad, "La Dolce Vita" quality about the place, a feeling that is height- ened by the labyrinthine de- sign; by the sunken walk- ways, tiered fountains, stri- ated arcs and captive gardens; a Villa d'Este turned to stone, the Andrea Doria's superstructure cast in con- Ceete. It's unsettling. Once dis- gorged into an empty hall- way, visitors are likely to feel a little desperate. In the curving beige corridors that run through the south and east buildings of the 10-acre, development, you can see lit- tle more than four doors at a time, and if you're looking for the elevator, there is nothing to tell you which way it lies. And of course you've forgot- ten which way you came from. Is this what it's like to be eaten by a snail? You have the feeling that you could wander the carpeted halls endlessly and never find the elevator. And what if the ele- vator doors look just like the apartment doors? Could you pass by them without no- ticing what they are? Thank God. The elevator - doors are marked by shoe- box-shaped ashtrays mounted on the wall. At last. A way out. Past the peephole-pierced beige doors discreetly labeled Long, Morse, Chennault, Di- Salle, Lasky, Dole, Auchin- doss, Smathers. Muzak in the elevator. The glass eye of the TV camera staring down at you. Could you hide in a cor- ner, make a face at the lens? Will the desk clerk stop you on the way out and frisk you, check your hands to see if they're bloody? Could you get away with murder at the Watergate? After all,. thieves have done pretty well there, despite magnetic clocks, guards, alarm tape and elec- tronic surveillance. Or would the monitor pick up your guilty look? Nameless, vague, unjustified, paranoic go itt. STATI NTL Sherwood ARIPVPlifsicou lease 2001 /03104 NYCW 0RDP80 -1160 tRG00200190001 -2 E9s based freelance who cannot afford to resident Ole Sand, a National Could you wander the 7- live in the Watergate. Education Association execu- Approved For Release 2001/64McIM2Rop80-01601R000pstpipp1 -2 ? . . =2.%;47:457=a7,7M17Z-SL'sWAL.Cr."4,12.2.31,'-'4;n3 These two incidents are part of an embracing pattern of capitulation to Nixon. without a fight, on the crucial is- sues of war and social programs. The situation is far more serious than the Demo- crats' defection from even partisan politics. let alone from the public welfare. The ongoing revelations since the Watergate ex- posure indicate that the Nixon Administration has or- ganized a large scale secret political-police operation out- side the Government structure, directed from the White House. financed by tens of millions of dollars contributed to Nixon's bagmen by the richest people in the nation and using the resources of the Central Intelligence Agency, the Department of Justice, and the Federal Bureau of In- vestigation.- ? ? ? ? ? ? - ? The purpose of this operation has been to coerce the opposition into inaction, to encourage the abstention of anti-Nixon voters. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 4. STATINTL DAILY Tonr.D Approved For Release 2001/03M 6&1115DP80-01601R00 PaIN6 A RUENT b:NFeR)C.:ki.e, NiY014AkP IF IIC-T A MAN Pgi;.A..-Yr? OF T'rl ?AY:A K-1 n1 ANP PIN..:6.1)41; remo,RATIO. HeAPQOARVR?-; to/a/it 17- 4.y.! ? ye t( ' _ Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 ALVY X latK TIMES 12 OCT 7972 Approved For Release 2001/03/04: CIA-RDP80-0160001-2 A Sinister Affair The Watergate affair has taken an astonishing and profoundly disturbing turn: ? . At first, it seemed that the men arrested for burglariv Ing and "bugging" the offices of the Democratic National Committee in the Watergate Building in Washington; D. C., were engaged in an ugly but isolated act of politi- cal espionage, But investigative reporting by The Wash- ington Post and other newspapers has now uncovered a complex, far-reaching and sinister operation on the? part of White House aides and the Nixon campaign organization. This operation involves sabotage, forgery, theft of confidential files, surveillance of Democratic candidates and their families and persistent efforts to lay the basis for possible blackmail and intimidation. For more than a year, a secret fund existed in the, Nixon headquarters which financed these "special activi- ties" and to which only certain key officials had access. Many hundreds of thousands of dollars in cash flowed through this secret fund. Dozens of people, including numerous ex-F.B.I. and ex-C.LA. agents, were employed in this clandestine work. High-ranking officials including some still 'employed at the White House and at the Committee to Re-elect the President received copies -of the confidential reports prepared by these agents on , the basis of their wiretapping and their surveillance of leading Democrats. A notably dramatic episode involves a letter which surfaced in the New Hampshire primary last February. It stated that Senator Edmund S. Muskie, while cam- paigning in Florida, had made a derogatory reference to Americans of French-Canadian background. The letter :never seemed plausible on its face but, played up by ' the scurrilous Manchester Union Leader, it weakened Mr. Muskie among French-Canadian voters in that city. It is now asserted that this letter was forged by a White House staff member in a deliberate effort to weaken Mr. Muskie, then the front-running Democratic candidate. The staff man has denied the allegation, but Senator Muskie is surely right that this serious charge and the many others which have come to public knowl- edge in recent weeks demand a personal response by President Nixon. The veracity and integrity of the Presi- dent's staff and campaign organization are at stake. Much of the public has reportedly taken the attitude pp to now that there is nothing particularly unusual in the Watergate affair. It cannot be reiterated too strongly that, on the contrary, such practices are unprecedented in American politics. No national party and no incum-. bent Administration have ever set out in this systematic fashion to invade the privacy, disrupt the activities, and discredit the leadership of the political'opposition. These are ambitions and police-state tactics which have no place in a democracy. . V STATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 -)2 WASHING TON STAR Approved For Release iv:dm/pi :09A/OpP80-01601 LI SDeC T" ay . By BARRY KALB Star-News Staff Writer The seven men charged in . the Watergate bugging case have filed a mountain of mo- tions asking, among other ? things, for a change of venue and revealing that three of the defendants feel they are being 'bugged or followed. The motions, which roam all over the legal lot and weigh over five pounds altogether, . include one by former White House aide E. Howard Hunt Jr. requesting time to study the feasibility of polling Dis- trict residents to determine the effect of pre-trial publici- ty. The change-of-venue motion charged that publicity has been so voluminous and preju- dicial that a fair trial is impos- 'sible. Included as evidence were several hundred pages of photo-copied newspaper arti- cles on the bugging of the 'Democrats' headquarters. The other six men charged are James W. McCord Jr., for- ? rner security ? chief for the .Committee for the Re-election of the President; Bernard L. Barker, Virgilio Gonzalez, Eu- genio Martinez and Frank Sturgis, all active in the Mi- ami anti-Castro movement, and G. Gordon Liddy, like Hunt, a former White House . aide, FBI and CIA agent. ? Hunt's attorneys asked to file three motions under seal, but this was denied by U.S. District Court Judge john .J ??? Sirica, who is presiding over -.the case. ? Deadline for Answers The prosecution filed no mo- tions by yesterday's deadline, - but must now answer each de- fense motion by Oct. 28. The government is expected to oppose vigorously some of the defense motions, including requests for the grand jury testimony of Douglas Caddy, who has represented both ? Hunt and Liddy, and of Alfred C. Baldwin III, who has re- vealed his part in the bugging. ? In one motion, Liddy, Hunt and McCord charge they have s Hunt says he was speaking to his chief counsel, William 0. Bittman, last Sept. 22 when he "heard someone on the line make the statement, 'that's Batman." At the time, Hunt's affidavit says, "no one was on any of the telephone extensions in my home." Frequent Intervals McCord, an expert on elec- tronic eavesdropping equip- ment, says he has used a de- vice on his home and business phones to detect wiretaps. "The device utilized . . . in- dicated that a tap exists, or has existed, at frequent inter- vals subsequent to my arrest in connection with the instant indictment," his affidavit says. Liddy complains of two cas- es in which he was personally followed, and outlines how he shook his tail. One day in September, his affidavit says, biddy west:rav- eling west on the George Washington Parkway in a four - wheel -drive vehicle, when he saw two men tailing him in a standard American sedan. ? Liddy "broke the surveil- lance by undertaking a series .of maneuvers on the aforesaid parkway capable of being per- formed by a four-wheel-drive vehicle and (Liddy) travel- sedan, the net effect of which was to have the surveilling vehickle and (Liddy) travell: ling at 180 degrees from each other." On Oct. 10, . the affidavit says, Liddy was walking near lath and H. Streets NW when he again felt he was being followed. He adopted a "stand- ard counter-surveillance tech- nique," which included pass- ing his destination, then duck- ing into a movie theater. He was followed by two men who sat down in front of him.. Near Collision They all left after about 40 minutes, the affidavit contin- ues, and Liddy again attempt- ed to evade them. At one point, Liddy placed himself in a doorway near 11th and New York Avenue NW, and when F? TH k %sein.?, a ? lie finally shook them when they went into a parking lot that extends from New York Avenue to H Street, the affida- vit says. - In another motion, Hunt charges that federal agents broke into his office in Room 338 of the Old Executive Office Building between July 6, 1971, and 'last June, drilled open a safe and took noteboolts cif his. The agents, Hunt Lays', had no search warrants. The mo- tion asks that the items taken be turned over to Hunt's attor- neys for inspection. It is also revealed that two of Hunt's children and Hunt's wife appeared before the grand ji.u7 investigating the case on July. 18 and July 19. Mrs. Hunt claimed the spouse's privilege not to testi- fy against-her husband. Hunt, the motion says, never actually appebred before the grand jury himself, but did give a sworn statement to AsA. U.S. Atty. Earl J. Silbert in which Hunt pleaded the Fifth Amendment against self-incrimination. According to letters at- tached to the motion, Silbert had agreed that Hunt need not appear before the grand jury. But in a letter to Bittman dat- ed July 25, Silbert said the grand jury asked about Hunt and the transcript of his state- rant was made available. The motion charged Silbert with impropriety, saying he had, in effect, compelled Hunt" to take the stand against his wishes." OnSS STATINTL tit been s caves 1:641,rrsofaciR (3114140 OgROWC:C I A -RDP80-01601R000200190001-2 surveillance. .? ? !,1 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 BE Available Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINT1171:!1(';Irj:1 POST Approved For Release 2001/031b4 PC3AlaDP80-01 1 -rr o 71_ r - , .JL .JS-. k-.) .4,1.. ? ? i 17 -!' . .."7.?.' 1(7 '1 Hf.'", fr'''.>, ; ' ! N..). ' 1 ' ' - .i By Carl Bern4ein and Bob Woodward WAst)inztrm rnst Svift v.%rA FBI agent have establisbed that the Watergate tediiine, inciclent stemmed from a reetsive ca p: Of rOUtiCal spying anti sahotaee coreineted on be- half of President. Nixoa'a re-election and direeted by officials of t White House and the Committee for the Re- election of the President. The activities, according to informa- tion in FM and J-)epartment of Justice files, were aimed at all the major Democratic, presidential contenders and -- since Ifril represented a basic strategy of the -Nixon re-election effort. During their WatergaiQ investizat ion, federal agents established that hun- dreds of thousands of dollars in Nixen camPaien contributions had been set aside to PaY for an extensive unciere0V- tir eampaien aimed at discredit jug in- dividual Democratic presidential candi- dates and disuniting their campadens.. "Intelli:.:enee work" is noercett during eampaien and is Said to he carried out by huh political parties. But fed- eral investieaiors said what thcy un- covered being done by the Nixon forces is unprecedented_ in scope and inten- sity. They said it included: Following, members of Democratic candidates fatili1O'S anti assembline dossiers on their persormi forein:: letters end ditrit,etinz them Ur.tier 1110 eantlidateS' false and manufactle-ed items to' the pre,s; throw:ing campaieu se.le.:eies into d:s? array; sojaiteconhdcntint teenpaign files, and inve:eieetamst es of (107e1tS of Democratic cantpai.tn werk- erS. In add:tien, investientors said the ao? tivities ineleded piarnire:t erovecaleoys III the rael,c ni per:.N1 to e:q110:1-1::., anti Democratic co:ii...,etions: end pmcmial doZIOZ'S to h,.?? fore their contributions were solicited. ? Informed of the e rteral contents of ?irtiolo, Of, U'Oa forced all comment to t be CO:11M on for the Bc-election of the pre,ieane A cpeees- man there said, 'Thie Pest story is not onie fietion let a eolleetme ab:eird- hies." tzl in 'e Pents r, le the :oory, tbe .zead.ess DeVal ionised on -;:reteific? Dial -the cnti:e ,ni'; N tt tie handq of the aoteor.res." ...1 ...., 7 (\r1/ [ 1 q../ ' i f ;. ,) 1 ..,. ......?. ,.!,....) _A....L. ? 7-4t..? ? 0\ ; I .L Hease aide--of a celebrated letter to the (' (ll cli rug that Sen. 1-stimund S. concloried a raeii,1 slur en Ainericans of Preneh-Canadian de:?cent as Cantieks." lie letter Was ptthlisiled in the 'Alan- ch.'ster l'oion Leader lob. 24. has than eeks before the Now liainoishire It in part triee.eaed pan:i.ellly (Min.-tent.; -cria;t? :Terkel" Wn.-,hingtooPct 9-af.c wetter. Mat+. \yin $eqice cepeeteel.Lhait. ken clzyte. s-oti, el,eooqj atreerce- ceenneincetezeis,ts'Act lAer tn ISconUe-v-- sation on Sept. 25 n:: c. Warhe .1.C.tkee." again9c.5,1:6ffIA?' son denied t !In+ hE.hact deice e, audhcf- stEptHil roirrf ;1,11 cuts'Cisrvatle,tuedi:',0'101,:t.0--b-ii,_,--(1'6?rSooc,i night; hrne. 1/4ki no? iL" LIRWSCY) Said Lob. patli 1611,tV O -Ale. Kan ches?er paaea. 's,%rt geis.t.Evcia,.j Ly\au., 41. thdaeli peett wric, Si 5nedst.he teeitt- It paol lv\ovrt5on Pia ?has; it (La 136:32a loca to( I) "i nrn conetnc..0 that: vi_tc,a(ectioit,e.- ilowe?vr, 1.00b Said he ItIVL:iigat - 10:z the that letter is a fabrication hecaose of another letter he tined% ed about two weeks nee. The re- cent letter, Loeb said, maintains that another tier: oil was paid $1,Ce0 to assist with the "Cannek" hoax, B..1. Mtt---,m7dd. editet-in-chicf of the Vnion headcr. said earlier ilos year that t'ia..vae l)-(1 been ett,-?rftil to the panel- in teleeecioet c iih tic erareicl.;? letter. .,-,1cfluaid did not etch- it.- ton s-dd that im helieved the ornzinal leiter was authentic. Clawson. a fornarr Washineton Net retuorl or. said yesterday that he met 'AlcQtiald only ledeity during Ihe NOW P????mrY?ltire leiroary while Iliechlite in the state with ers of the nowy.pwer. fir deni;^(t that 1-,f, provided all ;1?77iSt- Olt the letter. Ilium said the first lime hr heard cif the ? l'tier was when "I saw it on television" follow:me the ."'.1tiskze speech. Imieediately bloom ins "crying soorch.". 1\11ishie's standing in the New liampshite ptimary polls began to slip and he ft/mined with only 43 per cent -71 L Li L.) (::1J of . of the Democratic primary vote' ?far short of his expectations. Three attorneys have told STATINTL The Washin.-;ton Post that, as early as mid-1071, they were asked to. work as egents pro- vocateurs on behalf.. of.. the Nixon campaign.. They said they were asked to undermine the primary campaigns of Democratic candidates by a man who. has. been identified in FBI reports as an operative. of the Nixon re-election orga?-, ization. ' All three 1a.\4'yQrS, including one Wi1Q iS an assistant attorney general 0,Tenne6600. sz,id they turned down the offers, which purportedly included the prom- ise of "big jobs" 'in Washington after President 'Nixon's re-elec- tion. They ? said the overtures were made by Donald -IL Segretti, 31, a former Treasury DepartMent lawyer who lives in Monad Del Ray, Calif. Segretti denied making the offers and refused to ahswer a reporter's questions. One federal investigative of- ficial said that Seerelli played.' the role of "just a small fish in a big pond." According to FBI reports, at least 50 under- cover Nixon operatives traveled. throughout the country trying to disrupt and spy on Demo- cratic campaigns. - Both at the White House and within the President's re-elec- tion committee.. the intern- gence,sabotage operation was commonly called the "otrene sive se.eurity" program of the; Nixon forcei,-aceording to in-i vesti gators. Perhaps the most significant' findiDg of the whole Watergate Investigation, the investigators say, was that numerous speci- fic acts of political sabotage and spYing Were all tracedto. this "offensive security," which haw eviiinctioiret that pr?bnl,ly 14ppr.ovecutoriFtelease 2001/03/04: CIA-RDP80-01601R000200190001-2 WaS toe a White c ontnioa 1/ THE WASHINGTON POST PARADE Approved For Release i086761 : CIA-RDP80-01601R aJ (7724177 C.11 Hy.) n s-1 r711?,,, r"sA ; : r STATI NTL Q. I note in the Watergate caper, in which five men invaded Democratic National Headquarters, several former FBI and CIA men are involved. I thought the FBI and C/A hired men of high honor who believed in upholding, not violating, the law. All these years have I been living in ignorance??Mrs. R.T.T., Chevy Chase, Md. A. The FBI and CIA try to hire honorable men, but in the course of their activities, some agents learn to violate the law with impunity. Later when these men leave the FBI and CIA, they are hired exactly for that reason. In some instances the FBI and CIA hold their agencies above the law. When, last, for example, has Congress investigated the CIA or the FBI? Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 L(. Approved For IRelease5HOWR? r.,nffu By Bob Woodward moaned E. Howard Hunt. Then he muttered "no comment" and slammed down the phone. It was a balmy spring day, June 19, 1972. And "Hunt, the former CIA operative and White House consultant, had just been informed that his name and home telephone number were in the address books of two of the five men arrested two days earlier at the Democrats' Watergate headquar- ters. For Hunt that phone call, that rare June day, that sudden exclamation must now be an espe- cially bitter memory. It was, apparently, the first he knew of any public connection between him and the Watergate bugging; three months later he was indicted by a federal grand jury for playing a part in that alleged conspiracy. By then he had lost his jobs, been hounded by photographers and reporters, been the object of considerable unkind speculation and joking, been plastered across front pages. He was, in short, suffering the woes common to Washington figures caught up in the furies of a ? political scandal. If for no other reason, the sheer 0 inelegance, the slipshod quality of the break-in pd its aftermath must have rankled Hunt be- cause, on the surface at least, he has a lot of daz- zle?as do the heroes of his 40-plus novels, many of which are tales of suspense and spying. Now, associated not with a coup but with a calamity he has emerged reluctantly into the harsh limelight; he came out of a session of early testimony be- hind shades and beneath a straw hat, looking more like a Florida motel manager than a superspy. But he has remained in many respects?as he wished?a Mystery Man, a Gatsby of the cloak- and-wal kie-tal kie set. ? After Hunt's name was linked with the sus- pects, he abruptly dropped from sight. At one point 150 FBI agents were reliably reported to be searching for him here and abroad. In July he re-surfaced and appeared before the grand jury. Repeated attempts to reach him di- rectly or through his lawyer (William 0. Bittman, a former Justice Department attorney who suc- cessfully prosecuted former Teamster chief James Hoffa) have been unsuccessful. As of this writing in mid-September, Howard Hunt has maintained his no-comment posture-- unflinchingly. 0 Bob Woodward is a writer on the Metropolitan staff of The Washington Post Approved For Release 2001 60 STATI NTL Just a Few F Everett Howard Hunt Jr. is 54 years old. He lives in a $125,000 house in Potomac, Maryland. He is the father of four. He smokes a pipe. He is an only child. He plays jazz on the piano. He attended Brown University, graduating with a B.A. in 1940. He served in the U.S. Navy during World War II and was decorated. The CIA acknowledges that he was in their employ from 1949 until 1970. Be- fore the Watergate affair he was a $100-a-day White House consultant and a writer for the pub- lic relations firm of Robert R. Mullen & Co. Today he is neither. An unloaded .25 caliber pistol was? found by Federal investigators in his desk at the White House. Friends call him urbane and witty. The Past "Someone would mention a country abroad, almost any country,and then Howard would start his 'I-served-there' routine." , ?A Friend According to Who's Who, Hunt serv- ed: Paris, attache American embassy, 1948-49; Vi- enna, 1949-50; Mexico City, 1950-53; The Far East, Uruguay, and the Defense Department as a consultant. "Howard always brought up the CIA, recalls the 'friend.' "He was fascinated with his association with them and would bring it up in any conversation. He was never important at the CIA. He was never able to do all the things he thought up. I recall once he got down to the issue. Someone was talking about the slowness of government and Howard perked up. He said the CIA used to have guts but then it got bureaucratic and hierarchical. The CIA, he said, has lost its guts and ,that's too bad. "Well," the friend continued, "I take that to mean they became responsible and wouldn't let him run wild." (Atypically harsh comment from former Hunt friends with a stake in remaining po- litically alive.) What was Hunt doing in all those places? A State Department spokesman was asked if the embassy jobs and that title "consultant" had any- thing to do with a CIA cover. "You'd never get me to say that out loud, but that's the net effect," the spokesman replied. According to Hunt's associates, Hunt was a po- litical conservative with right wing leanings. The New York Times went so far as to quote sources who said that Hunt, using the code name "Eduardo," was in charge of the abortive Bay of Pigs invasion in 1961. This is just not so, according to government sources and friends. Hunt was never really in charge of much, they say, and though several compared him to James /08a4,: GIA-RD42803.01t601(R0002.42031 90001 -2 STATI NTL - ? bOntiTerint7 LOS ANGELES TIMES sTATINTL Approved For Release 2001/03/40:cFLtIDP80-01601 ?? r ret (n 11 Et re, . esikt) ?=4$:,3k- tva? ? IT r=1 rt r4", rfi0a " tiVa lt Qo' I( I Y C-4 ?1.'k.f. 1 ri.er7.41.1 Baldwin Allcges That Before Arrests Memos Were Sent to GOP Committee .Official Not Arnong Seven Indicted BY JACK NELSON and RONALD J. 'OSTROW Times Staff Writers NEW/ HAVEN, Conn,?A partici- pant, in the bugging incident at Democratic National Headquarters, has told The Times that he delivered sealed sets of eavesdropping logs to the Committee for the Reelection of the President less than two weeks before police closed in on the illegal operation. ? / Alfred C. Baldwin IH, a key 'v government witness in the ease, said. Baldwin describes bugging .of Democrai-ic headquarters. Part 2, Page 7. the logs were addressed to a commit- tee official who is not among the seven men indicted last month in the incident, Baldwin said he could not remember the identity of the of- ficial. Baldwin said he was instructed to deliver the logs in early June by James "W. McCord jr. McCord was security coordinator for the Nixon committee then and one of those in- dicted in the ,Ione 17 incident at the Watergate apartment complex in Washington, D.C. McCord gave him the instructions from Miami, Baldwin said, after Baldwin had told him that he had recorded "some important conversa- tions" while monitoring the wire tap on Democratic national headquar- ters. ? Baldwin, 3G, a former FBI agent and security guard for Martha Mitchell, spoke about his role in the bizarre case last weekend in .more than five hours of tape-recorded in- tcroiew with The Times. Baldwin monitored the telephone tap at the Democratic headquarters last May and June from a listening post in the Howard Johnson Motel, across the street from the Watergate. Baldwin's attorneys, John V. Cas- sidento .and Robert C. Mirto, urged The Times Wednesday not to print their client's interview or any -sto- ries based on it. They did so after be- ing contacted by Earl Silbert, chief ? STATI NTL cials involved in the inves- Silbert warned Cassiden- tigatien have said that the to that, the government real motivation for the hi- might consider its agree- zarre incident may never ment not to prosecute emerge. Bald win broken if be But for Baldwin. the purpose was clear at the spoke out on the case and outeet..., Thai was emav 2.1 also said Baldwin mi`..l.111 ,when McCord reassig?ed be held in contempt of ."Baldwin from reporting court, according, to Casaei.. on anti - Administration 'dente). ? . demonstrations to moni- SeyMOU r Glanzer. the t ori lig the phone t a p. Baldwin said he kept logs - other main government al- on about 900 telephone torne.? in .the ease, later conversations he had mon- read Baldwin's lawyers an itored over a three-week order issued Wetinesdav Period. McCord, Baldwin said; by U.S. Dist. Judge John would leave his desk at Silica barring' Pr:nclPill,' the Nixon committee to vi- from making statements it the listening post once on the case. ? or twice a day, )ie said ..\ic.. i used in the. Watergale Story Not Sold Cord, a former CIA agent,4 ' Nivesd.ropping, toi Ld in would often rewrite the 'McCord's cifii'e at. Nixon Although t h e r e have locos in inemorandum form malmil?tee ?Bice'''. Gordon Liddy, anot ler former FBI. agent and a White House aide and fi- nonce. counsel at the Com- mittee for the Reelection of .the President, and B. Howard Hunt Jr., On ex- CIA agent and. former White House consultant. The Balchvin interviews shed new light the po- litically charged case, - Which is unlikely to pro- ceed in civil or criminal courts. until 11'01 after the election. Prospects for pre-Nov. 7 congressional hearings on the incident dimmed con- siderably Tuesday when the House ollani:ing and Currency Committee de- feated a motion to sob- - peona Baldwin and 2'3 oth- er persons said to have knowledge about the case. Chief among Balciw:in's new disclosures were: ?Baldwin that he saw electronic equipment, some which was later been widespread reports when they discio?cd that Baldwin was attempt- ?,,,,t?f G f) trig to sell his story, lie re- - ''- ceived no remuneration strategy or of O'fit:ien's ac- from The Times. His sole On the advice of his law-. request was that he be Permitted to tell the story vers, Baldwin declined to ? fj 'Sped fieS Oil the con- the way he saw it. In the interviews, Bald- Yersations he monitored. Nvin said he put the eaves- The attorneys told him dropping logs in an enve- that he would be violating lope, which he addressed the federal wiretanotqg to the official, taped and statute if he disclosed the stapled and took to the . contents of those conver- Nixon committee offices sat ions. - seven blocks away, in the interviews, Bald- !'An elderly guard was Will dismissed published on ,duty in the building rePerts that the eaves- and he took the envelope. droppers sought to di- recognized the name on it. cover a link between the and said he would ,..,ce to it Cuban government and that the official received the McGovern-Democratic it," Baldwin said: campaig,n efforts. Baldwin said he believed Although four of the five the eavesdroppers were men arrested on June 17 interested in?imarilv in in- were born in Cuba and all , f o r m a t i o n about Sen. had been deeply illYofted George S. McGovern, l.aw- in anti-Castro activities, renee F. O'Brien, then Baldwin said he never Democratic Party chair- hrard the three (Well- man, and about Democrat- darn's' with whim he had 'elease Oglipaig4tc,c1A-RDP8010180tR13002001g0t 01 contact mention Cuba. WashingtApprovsad Of - t , ? .. --Baldwin said he watched from acrosse the street on May 25 as . COM entered Democratic headquarters and installed two wiretaps. McCoi?d was aceompa- nied by at least: one other person, perhaps two, Bald- win said, adding he was not close enough to identi- Iv anyone other thanMc- Cord. (The indictment al- leged that the eavesdrop- ping began on or about May 25.) ?The tap installed on the telephone of Spencer Olive r, coordinator of Democratic state chai r- men, worked well. Bat the device planted on what t h e .eavesdroppers lieved to be O'Brien's tele- phone failed to transmit because it %vies too shield- ed by the building and of- fice equipment. ?As a result. Baldwin said he was ordered by McCord to enter Demo- wassistant to the U.S Attore in c ? ot- ? ? government's case. ln addition to Mecord, ? 'Justice Department offi- those defendants are G. tOntiflUea 14adquarters and Approved For Release 2060,61bciffalat6P80-01601 5 OCT 1972 STATINTL ?. 6.1. 9. I 1,r1-19A 13Y-ALFRED C. BALDWIN III ? As told to Jack Nebon ? Times Staff Write? ? NEW HAVEN, Conn,?Across the street in the Democratic National Committee offices 1 could see Men with guns and flashlights looking . behind desks and out on the balco- ny. It was a weird scene at Washing- ton's Watergate complex. The men. .; were looking for several persons, in- ? lyluding my boss?James W. McCord jr., who was security director for both President Nixon's Reelection Committee and the Republican tional Committee. . ; A short while later McCord and four other men, all in handcuffs, would be led by police to patrol cars and taken to jail. And . a White .1-louse consultant would rush into :My' motel room across the street from the ? Democratic offices and - peer. down on the scene before flee- ing the area, tI bad been using a VI'alkie-talkie sand acting as a lookout for .Mc(.7ord' ? and his men, who were engaged in a - bugging operation. For three weeks. Baldwin was. ,0 key government :witness before the grout jury that :indicted seven ?ten in the Watergate 'case. . ? 'I had monitored- coversations on a .tapped phone in the Democratic of- fices. My mission had been to record all 'conversations. McCord appeared to be especially interested in any infor- mation- on Sen. George AlcGovern and the Democratic Party chairm.an, Lawrence O'Brien, and anything having to do with political strategy. WHEN THE Committee for the Reelection of the President hired me for security .work with Mrs. Martha Mitchell, nothing was said about evehtual espionage missions involv- ing electronic eavesdropping. But then the man I worked direct- ly under, Jim McCord. was not given to long explanations about anything. ? 'You would have to know McCord to 'understand what. I mean. Like myself, McCord is an ex-FBI agent. But he also served 20 years in the CentralApprovedkRorAelei he is one of those ex-CIA. agents who t.) ? do more listening than talking. f 'ou t d 1Vhen he wants Ti2111-L 01 "V nig r;r) o o someth ng aell17t,hhinegjust tells you. No buildup or When McCord was ready to switch me. from protecting john wife to other security work, he simply told MC that the President's reelection committee had ot he r. work for me. Contrary to some press reports. I got along fine with Mrs. Mitchell during the days 1 protected her. She is a vivacious person and I found working with her fascinating. But I felt any work with the re- election committee would be fas- cinating and I like Jim McCord. I NEVER questioned McCord's ? orders. I felt he was acting under or- :dors and with full authority. After all, his boss was John Mitchell, the , committee director and former at- torney general of the United States. , ? And his superior was President Nix- on. If that was not enough to impress me with McCord's authority and of- ficial standing, we were surrounded by former 'White house aides. Mc- Cord said were "on loan' to the coni- mittee. My involvement with the commit- tee began Max' 1 when McCord tele- phoned my home in Ha. Wen, Conn. He had secured a resume I had filed with the Society of Ex-I0131 Agents in New York and had reviewed it and . several other resumes on file with this society. He felt that be- cause of my age, background and marital status?I am 36 and single? I was best. suited for the position. he said they (the committee) needed someone immediately so I took a plane to Washington -that night and registered at the Roger Smith Hotel where we met the next morning. He emphasized that al- though the job was temporary, it could lie a stepping-stone to a per- manent position after President Nixon's reelection. ? WE WALKED a block down the street to the Reelection Committee headquarters at 1701 Pennsylvania Ave., a.block from the White House, and McCord took me on a tour of committee offices on several floors. As different persons missed. MeCord 0100/01#4 ie!IPII4110fie8? r "there's another one who's on loan rom the White House." e " 0 L3 )1. I's\ 11 aa C)Ta, ? , We went to the office of Fred LaRue to get approval for my em- ployment and McCord said, "Mr. LaRue is over from the White House.. He's John Mitchell's right- hand man." LaRue was friendly enough, but ver y businesslike. McCord r ea d some brief data he .had jotted down on the back of an envelope: "Al Baldwin, ex-F131 agent, former Ma- rine captain, law degree, taught po- lice science . . ." - ? LaRue looked me up and clown. I was in standard FBI dress?conser- vative suit, white shirt and tie and black, wing-tipped shoes. Our con- versation was brief. I think he asked if I was prepared to travel and I said, "yes sir." He replied, 'okay, that's fine." ? McCORD LATER issued me a ?. loaded .3S-snub:nosed police special - and said, "you'll wear this." I had no permit or official 'identification f and ? questioned whether I was author- - ized to carry it. - . Ire handed me a ctird bearing his name and the name of the reelection. ? committee and said: "You're work- . ing for the former -attorney general and there's no way a policeman or any -other. law enforcement officer is . going to question your right to carry ? that weapon. But if you have any problem, have them call me." In -McCord's office at committee ? ? headquarters I- noticed extensive electronic etatipme.nt ? walkie- talkies, teleyision surveillance units and variOus other devices. The top .to a fancy briefcase was open, expos- ing considerable electronic equip- ment. I. was. told: it ,was a debugging unit: .. , ? McCord told me I would be accom- panying Mrs. Mitchell on a trip to Michigan and New York. He issued me :s-S00?eight brand new S100 bills ?and said it was for food, drinks, tips and .incidental expenses for the trip. In Michigan, where Mrs. Mitchell attended several affairs, we were joined by LaRue. Ile mentioned to me at_one 12oint that thennstol I was ? -016IKROG0200190001-2capon. ? bOlatinUea Approved For ag Put On All 311 d1104 Talk Ban Could .Apply to Press And McGovern By Lawrence Meyer ' Wtshingtoa-Post Staff Writer The federal judge presid- ing over the criminal trial ' of seven men charged in the Attie 17 break-in at Demo- cratic national headquarters in the Watergate issued a broad order yesterday pro- hibiting anyone connected with the case from making . public statements about it. ?The order, Judge John . J. Sirius acknowledged, is broad enough that it possibly could . apply to Democratic presiden- tial candidate Sen. George McGovern and other political figures. ?Sirica's order prohibits all law enforcement agencies, the defendants,. witnesses, poten- tial witnesses "including com- plaining witnesses and alleged victims, their attorneys and all persons acting for or with them in connection with this case" from making statements to anyone, "including the news media," outside of court. . Sirica, who was ill yesterday and signed the order at home, was asked in a telephone in- terview by a reporter if the order covered McGovern, who Jas discussed the Watergate case in speeches. Sirica re- plied: ' .. "That's a good question. 'I tried to make it (the order) as broad as I could. I. hadn't thought about it. I frankly hadn't given that a thought. I'll have to deal with that at some time I suppose, but I'd rather not answer that ques- tion now." ' S. Sirica said that the order could conceivably result in a situation where "we get into et_he campaign and free speech and that business." .Paus he . said that Apprsoveldnf. or have to meet at the proper time. I have. no comment. It WASHINGTON POS11,,,, Release 2001/03/041ccIVROPT0t01010 may be kalsed, It may never be raised." Sirica went on to say that someone could raise a ques- tion about newspapers and other media discussing the ease. "I think I better wait and answer that question if it's ever raised," Sirica said, "I don't think frankly I should go outside what I raised in that order. I think it's pretty broad. I. don't know what you think about it." . The order came a day after the House Banking and Cur- rency Committee voted 20 to 15 against holding public hear- ings on the Watergate bugging and alleged irregularities in President Nixon's re-election campaign financing. It is considered highly un- likely that the criminal trial will begin before the Nov. 7 presidential election. U.S. Dis- trict Court Judge Charles R. Richey, presiding over a $3.2 million civil damage suit brought by the Democratic Party over the Watergate af- ocratie Party headquarters, I intend to pursue and exercise to the full extent of the Con- stitution our First Amendment rights to conduct a political dialogue to Inform the public about this net of political espi- onage as well as all other evi- dence of corruption in high places in the Nixon adminis- tration." McGovern said, "It is .a sad time for America when 'White House pressure can turn off a congressional investigation and when the Attorney Gen- eral of the United States and his agents can enter into a po- litical agreement with the seven men charged with the burglary and bugging of Dem- ocratic headquarters?an agreement that no one should be permitted to speak to the American people about these acts; who authorized and paid for them, and who received the information stolen from our headquarters." Sirica's order was issued fair, announced two weeks ago under a federal court rule that that it will be "impossible" to allows a judge in a "widely begin that case until after the publicized or sensational civil election. All depositions for or criminal case" to issue a the civil case have been stayed special order at the requisst of by Richey until the comple- either the defense or prosecu- tion of the criminal trial. tion or on his own motion. McGovern issued a state- The order may cover "such Mont yesterday evening saying matters as extrajudicial state- that he respects the rights of , merits by parties and wit- the seven men charged with nesses likely to interfere with the break-in, but adding, "I ? the rights of the accused to a will not allow myself to be , fair trial by an impartial jury muzzled or intimidated by any n . . . and any otter matters politically motivated directive which the court may deem ap- from Richard Nixon." McGovern said that he had consulted with Democratic . lawyers and concluded that Sirica's order does not inhibit "the right of candidates for public office to discuss the burglary and bugging of Dein- preprint? for inclusion in such an order." , The motion requesting the order was filed by William 0. Bittman, the lawyer for E. Howard Hunt Jr. Hunt, one of the seven defendants, is a for- mer White House aide, as is G. Gordon Liddy, also a defend- ant in the case. A notation on the bottom of 'Sirica's order indicates that :Earl J. Silbert, principal as- sistant United States attorney, had no objection to the order Sirica, who holds his posi- tion as chief judge by virtue -of seniority, was appointed to the U.S. District Court in 1957 by the late President Dwight Eisenhower. . Sirica assigned himself the criminal trial of the seven defendants after Sil- bert, acting under another fed- eral rule, reqttested that Sirica appoint 'the best available judge" to preside in the case. In a related matter, Rep Wright Patman (D-Tex.), chair- man of the House Banking and Currency Committee, asked the General Accounting Office yesterday to open an "immediate investigation" into Republican campaign financial, matters relating to the Water- gate. incident. In a letter to Elmer B. Stoats, head of the GAO?the investigative arm of Congress ?Patman asked that he re- ceive a "preliminary report in writing" by Oct. 20. Patman's request followed the rejection of an investigation by his own committee. . In yesterday's letter to the GAO, Patman asked that it in- vestigate essentially the same matters that he had unsuccess- fully proposed that his Com- mittee deal with in public hearings. Those matters include the $114,000 of President Nixon's campaign funds traced to the bank account of one of the Watergate suspects; the use of a Mexican bank to transfer the funds, and the unusual speed in granting a federal bank charter to a large Nixon campaign donor. Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Nnyr..T.,_f.t Approved For Release 2001/0-3/04-? CIA41.DP80-01601R00 4 'OCT 1972 17' 1 ? 1111 fr. pp : :, i? A f? - . I ti 1,.- - :,:i ...,....,. p;, ,`! f ;; i ? . : g i -1 c LiLiti (W L LL IJLII.;? Eltsburg, Russo sue ? . 1 Pentagon- Papers defendants Daniel ? .Ellsberg and Anthony Russo filed suit Sept. 19 against 10 top federal officials whom they charged with illegal wiretapping. The suit was brought under the 1968 wiretap law which permits officials to use taps but also . permits damage suits for unauthorized eavesdropping.The Ellsberg-Russo trial has been postponed indefinitely until the supreme court rules on their claim that the wiretapping interfered with their defense. The Justice Department admitted in July that an unnamed defense lawyer had been the subject of .a tap. placed "in the national interest." . Cited in the suit are the heads of the Justice Department, State Department, Defense Department, FBI, CIA and other federal agencies. Damages ? demanded amount to several million dollars. ? - --...., 't STATINTL L77.y:3 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 THE MONTGOMERY COUNTY FREEDOM PARTY Approved Fr Release 2001/03/04 4C11A-RDP80-01601R00020 to ,rfTveratn1 .fiL1)(1.161-Az.) F It ,(17, J L rgs2 6`'W P-1-711" uiLALJULL'ut.,4 a ? STATINTL Radicals across the country are taking note of an increasing number of !coincidences involved in the "Watergate Bugging Caper" that lead some to con- clude that the attempted break-in at the Democratic Party headquarters was pert of an elaborate plot to smash left-wing activiSts. Coincidence, facts and some unconfimred statements are all detailed in the August, 1972 edition of The Realist, available for 50 cents from The Real- 1st, Box 379, Stuyvesant Station, New York, NY 10009. Because of the length of the material in the Realist article, SPARK will concern itself only with.the briefest outline of the plot and James McCord's involvement with it. Further information should be obtained from the Realist There has been some evi- James McCord, Jr., held three dence, some circumstantial and important jobs at the time of his some coincidential, which point arrest (He was Chief of Security in the direction that James Mc- for the Committee to Re-Elect Nix- Cord may still have been employed on; the biggest contract a secur- by the CIA, and was on a CIA mis- ity agent could receive went to sion when he was arrested in the McCord Associates, selected by Se- Watergate. cret Service agent Al Wong, to pro- The plot, extremely simpli7 ;vide all security for the Republi- fied, is thaf;the five men were can Convention in Miami; McCord part of a.larger.CIA plot headed was a member of a special 16-man by McCord and Bernard Barker (an- unit, concerned with plans and pre- other of the five arrested inside paredness, which is part of the the Watergate) that would. have Executive.Office of the President. , attempted to foment such.violent 'This unit's purpose was concerned disruptions at the Republican , with radicals and contingency plans Convention that Nixon would have for the radicals. an excuse to declare martial law,. Arrested with McCord were right cancel the '72 elections and ar- wing extremists, violently anti- , rest all militants and radicals. Communist.intelligence agents. They The plot theory is based were all planning to hold right- . partly on testimony s year ago wing convention demonstrations. by Louis Tackwood, a former paid ;Each of these men would make Mc- agent of the.Los,Angeles Police 'Cord's job more difficult in Miami Department for 9 years who held a yet they were working together. press conference and charged .that The plot advocates content LAPD was part of a remarkably that McCord's job on the 16-Man similar plot to the one briefly Contingency Unit on Radicals was outlined above. . to develop plans to insure the In addition, those arrested level of violence necessary. for in the case had extensive CIA Nixon to declare martial law. They contacts. The Watergate Caper .contend that his role as Security figures fit into the plot des- Chief for the convention and his ar- 'cribed by Tackwood in numerous rest:with the CIA-associated right- ways (see Realist article). wing Cubans all fit into this role. We only have space to con, continued cern ours payo MOO P?Mgkgas 02001/03/04 : CIA-RDP80-01601R000200190001-2 McCord and 'the direction they point toward. STATINTL THE MONTGOMERY COUNTY F'm DOM PARTY Approved For Release 2001/03/04 oalA4WP80-01601R000200190001-2 ? ra 4.1 ? ? pi 4.900.1.1?111.1010111?11..>1?:??.????, The case of James McCord has revealed a further outrage in the Montgomery College-Rockville Crimi- nal Justice program. McCord had OMM.1605/1?0011. iD Udell)QJjijL3 mr,t, /71 r rri u)-sci-j STATINTL fessional security man -- give a .recruited one of his students at lecture on bugging. It was illus- MC to help him plant eavesdropping trated with slides and a handful of ,equipment in McGovern 'headquarters, then on Capitol Hill. , - bugs, one student said. This violation of all academic The industrial and retail se- principles -- liberal, conservative;rity course that McCord "taught" radical or reactionary -- only fur- was a seminar that featured guest ther exposes the blatantly repress- speakers from government and in- iv nature of this program. it .?s dustry; including former CIA offi7 e clearly a program designed to train.cials. . students to become criminals -- Two of. the former CIA men who criminals like McCord, Mitchell and spoke to the class were William J. .../ Nixon. . iCotter, assistant postmaster gener- McCord is the former FBI agent, al for security, and George P. former CIA agent, Lieutenant Colonnl Morse, former director of protec- in the Air Force Reserves, and for- tion and safety for the National mer Security Chief for President Institutes of Health. In addition, .Nixon's re-election committee who he also brought in top brass from was one of five arrested inside the the Army, including Lt. Gen. Benja- Watergate in an attempt to bug the min Davis, now assistant secretary Democratic Party's national head- of Transportation. quarters . . Besides.being a proven pig and This effort to recruit studentshaving broughtother pigs in to at Montgomery College for police- teach the course, McCord was .a ter- state actions was revealed by the rible instructor. It should be re- Washington Post September 19 in an membered, however, that academic article about McCord's Montgomery incompetence in Criminal Justice ' College activities: "At least one programs is widespread (see SPARK, student was excited enough to agree Vol. I, No.5), and McCord is not an .to join McCord, 53, in a late May isolated case. e . attempt to plant eavesdropping According to the Washington equipment in McGovern headquarters, Post, "The notes of a student who then on Capitol Hill, according to took the course and review questions a source close to the Watergate in- passed out by McCord suggest a dry, vestigation. But the student fail- factual, statistical approach to the ed to show." clandestine business. 'What were ? It is heartening to know that the total costs of crime cited by the unidentified student thought ? one recent news journal article?' better of going through with the one review question asks." . act; however, it repulses a person The absurdity, of this type of to'know that McCord .used the class- questioning has caused nearly all room in an attempt to further hie? college teachers across the country own fascist goals, to drop it (although it is still a In another attempt to utilize ' pervasive element in primary and the classRormAlrp qa.AvetWe The_fLZt pression lerieW i'', he ha one of citVi q-tomp rugpAp0001-2 t . OiSIMIlefaie12001/14#4 his students -- who was also a pro- measured, makes questions like .this continued Thn nn1.7 trin,,,,lnAnn 41- Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Available Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For ReleaseclitO1W9P6 l? 'ocen preszlect in!o ciiCC to I kan :2lort. The Us "Navy lte, Hiti (.10.)1.f111113, lions, and, . \vhal,:.,s for arid also a s:a iIIyiiiiv n ckience . military 01 th" .1.'..1.-1)j,Ach, rt ci cLA :12s recruitc,d Flies to \vhieli 'nave ;:?,ec,i aaached alicrescop!c tr..insinIttc?rs to act as tz-dios. 'chose win:ect s the adviitage. .oi: b.jag to the inr.c2rrnost circles a the enemy's govern- montal and inilitary.',2,1:1;-hin.....nts----or at least to the kitchens and (!nst.:;imi. It b not recorded ?vhether they belon:.),.- to the poiit-1)171: of insects. But -it !:.-:cy,,,Tt that tlIcy a touch of the kanirr.ne ahoi; tHm, rhich c:von. China's ,kill-a-f1Y-a-daY drive (instit'-'ted 7art O the for .ii(.1.;.:turat De-,..-,Inp- rnent in E3) v;ou!-1 not be beat. Oar gallant fly haruos are abte to ii.?c,i1:1 by continuing to .1rom beOncl ihgeave, F.ftkr bc-irg it way I.;:) aacty cauued tir.t :.;oon hOP!..csi,Jent Nixon awaF'..in2; the k7iCIOW:i o. thC:;-;42, tless patriots transi;itor.1 Purple Si-lc:Arts on 'the White House lawn. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 THE ATLANTIC MONTHLY Approved For Release 2001/03/04Q1A-RDP80-01601R0 STATINTL HE GOVERNMENT IS WATCEaNG Is there anything the police don't want to kno 1325MainatZR4VIWZiEriLIZEJETAV.70:3.937,27.17EFFMTSMOLWACTIMMAMMATAVLIITZWIn74,MMEEZZ7nie by Thomas Powprs any Americans take their notions of life in a police state from George Orwell's 1984, a bitter vision of unrelenting institutional malevolence. The state, Orwell feared, would intrude into every corner of life with the purpose of direct and total control. Every room would be wired for sound, every move scanned by cameras, every ac- quaintance a potential informer, every thought a po- tential crime. Orwell's vision was based on certain ? harsh realities: the Germany and Russia of the 1930s . and 1940s, and the growing technology of surveil- lance available to policemen. He assumed, with rea- son,. that police would do it if they could do it, and ?, foresaw a time, quickly approaching, when nothing would be technically beyond them. Orwell was a man who brooded, working his thoughts over in his mind for years, and the visionary force of 1984 has left its readers with the assumption that the police state of the future must include midnight knocks on the door, interrogation by torture, and pistol bullets in the back of the head. Much of what Orwell envisioned for the world is now fact, but veiled and muted fact,: with the effect , that even in this country police activity which would have seemed inconceivable in earlier decades now strikes many otherwise skeptical people as prudent watchfulness, at worst only trivial and overcautious, and perhaps even necessary. Everyone knows vaguely that the FBI keeps an eye on things, that lo- cal police departments watch radicals, that even the STATI NTL Army for a while was keeping files on people it con- sidered possible troublemakers. But the reality of this political spying has been so much less sinister than Orwell anticipated, so fumbling and occasional, that even those most concerned, its targets or "victims," if you will, have difficulty in maintaining their sense of alarm. Those in favor of this incessant watching ar- gue lamely that one has nothing to fear so long as one has nothing to hide; and those who oppose it still speak more of future rather than present dangers in 'the use of police procedures for political purposes. Even this writer, when he began, thought other prob- lems more urgent than political surveillance, and yet, when you begin to add everything up, not only what is known, which is plenty, but what is not known, which might be . . . anything . . .Well, let us not anticipate, but proceed. Perhaps the best place to begin is with the experi- ences of a single organization, Vietnam Veterans Against the War, a group of several hundred activists and perhaps twenty thousand members all told, of whom very few had taken part in any sort of politics before joining VVAW. The group came to life in April, 1967, when 'six veterans found themselves marching together in a huge antiwar demonstration in New York. Its official existence has been fitful ever since, growing and subsiding more or less in time with the antiwar movement as a whole. Their best- known action was Operation Dewey Canyon III in continued Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 WA "IiTI.ICTON POST 20 SEP 1972 -Apwciv difor Release 3001103/04 : CIA-R , r ?.? 17- ? 6-1) TYii 13y Sanford J. Ungar Wilthinttto? NM, Staff Writer Daniel Ellsberg, Anthony Russo and 17 of their attorneys and advisers in the Pentagon Papers case filed a lawsuit in federal court here yesterday, claiming they are victims of il- legal government wiretapping. Naming as defendants Attor- ney General Richard G. Klein- dienst, his predecessor John N. Mitchell and the heads of .eight other federal agencies, they demanded hundreds of thousands of dollars in dam- ages. Similar to the civil com- plaint filed by the Democratic National Committee over the Watergate bugging incident, the .suit is a strategic attack on the electronic surveillance that has postponed the Los Angeles trial of Ellsberg and Russo on conspiracy, espio- nage and theft charges. It is aimed at obtaining, through the "discovery" pence- dureS of civil litigation, details on the wiretapping thus far denied to the defense ? Prosecutors in the Pentagon Papers case have revealed to the courts that a defense aide was overheard orra wiretap of someone else's phone. As a "foreign intelligence" wiretap, it was authorized by the Alton: ney General without a court order, Supreme Court justice Wil- liam 0. Douglas has halted the criminal trial pending a deci- sion by the full. Supreme Court next month whether to consider an Ellsberg-Russo ap- peal over the wiretapping. But the defense staff does not know who among them was overheard 'in the STATI NTL 80-01601 R000 o JLU ?-\',,,.1,7"r 0 ri ? 0 V. , '!" '0 0 '17; 611`ir 6.- - ' T 17171 (rff V \i, ILL_ v?,,_,,, a/6X, ,_ JL A I - TC:..) !surveillance, exactly when and under what circumstances. Yesterday's lawsuit sought to get at that information by claiming. that the government wiretapping in the case vio- lated the First., Fourth and Sixth Amendments to the con- stitution, as well as the Omni- hi ,s crime Control and Safe St reels Act of 1968. That act provided for the re- covery of civil damages by any- one who is the subject of il- legal wh?etapping not covered by a court order or legislative an The Stiffen) 0 Court has banned "national security" wire tapping without. court order, but has left open the . question of whether such sur- veillance may be. conducted for alleged "foreign intelli- gence" purposes. 'Along with the lawsuit, the 19 plaintiffs filed Interrogato- ries yesterday, asking the FBI, the Secret Service, the inter- nal Bevenue Service, the Cen- tral Intelligence Agency and other agencies to provide full _details of any surveillance they might have conducted in which the plaintiffs were over- heard since June 19, 1968, .when t h e crime control act was signed into law by Presi- dent Johnson. ! Should they prevail in the lawsuit, each person wire- tapped could be awarded dam- ages of $100 a day, up to a maximum of $1,000. Ellsburg; Russo and their aides also de- manded punitive damages of . $50,000 each.. The civil case was assigned to U. S. District Court judge .Thomas Flannery, formerly U. S. attorney for the District of Columbia.. STATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL GARDApiati ibtTr Release 2001/03/04: CIA-RDP80-01601 RO NEW I SEP 2 81972 E 427,270 J( VIEW F11031 WASHINGTON By Russell Sackett . Newsday Washington Bureau Chief ? Washington?Just about any noninvolved law- yer, and a few who are involved and not too uptight s to talk about it, will concur in this opinion of the ? =Watergate affair: Whatever else it is, the case is r.ithe solidest proof yet of the unevenness, if not the .::..,impossibility, of election-year justice. In the blizzard of arrests, investigations, suits -':and countersuits, accusations and counteraccusa- tions, briefs, intervenors and theories without end, i_ where is the Watergate case? Well, the five men who were caught, with their surgical-gloved hands in the air, in the Watergate offices of the Democratic ? I, National Committee at around 3 AM on June 17 r were indicted here Sept. 15 by a U.S. grand jury. Indicted With the' five were two former White House aides, G. Gordon Liddy and E. Howard Hunt Jr. Liddy, a former FBI agent, was financial counsel ? for the Nixon campaign committee until he was t. fired for refusing to answer FBI agents' questior!.s regarding the Watergate affair. Hunt, a veteran of the CIA and a novelist, was an investigative con- sultafir attached at one time to the office of ts presidential assistant John Ehrlichman. Liddy and ? Hunt are charged with entering the Democratic i offices on the same night as the other five "with the ? :?intent to steal property." One thing is clear: The case is political. ? The Democrats, who not surprisingly see it as campaign issue, have been doing their utmost to i? push things along, all the while claiming that the f. Justice Department is dragging its feet and avoid- ing the real issue of who was behind the break-in at ? the Watergate. Attorney General Kleindienst, who is in charge ?-'of federal investigations, has insisted that the Dem- ? ? ocrats are trying to make the Watergate a political issue. The Democrats counter that the attorney gen- eral is a Republican, a surrogate campaigner for , President Nixon arid a political creature. Both ? . claims have considerable merit. - The matter of a political attorney general is con- stantly at issue in the break-in case. Kleindienst campaigned for Nixon in 1968 and even more .strongly for Barry Goldwater in 1964. His prede- cessor, John N. Mitchell, was Nixon's '68 campaign manager. The practice is a good deal older than the Nixon administration. Robert Kennedy directed his brother's presidential campaign and served as his chief political consultant before becoming attorney general. And so on. Frank Mankiewicz, political director for George ILIcGovern, compared an investigation headed by ? Kleindienst to asking a fox who broke into the ? ? CarnpaimPiprpifstck,%5). . t03/04 : CIA-RDP80-01601 R000200190001-2 chicken %Kip and 1.13.11ed for,LA ? fily responded that such an appointment was 7 "impossible." ter cite Ye us ice "Who are you going to 'substitute for the FBI?" ? he asked. More rhetoric: The FBI would be as avail- able to a special prosecutor as it would be to the attorney general. Lawrence F. O'Brien, campaign chairman for ? McGovern, filed a damage suit against the Commit- tee to Reelect the President; its finance chairman, former Commerce Secretary Maurice Shins, and assorted others?for $3,200,000 at last reading. The ,amount of the suit is about as important as "list prices" in a discount house. The suit was intended to smoke out facts and figures, before the election in November, by taking testimony under oath in pre- trial depositions. Starts countered with two suits of his own?one for $5,000,000 against O'Brien and another for $2,500.000 against O'Brien and his attorneys? ? charging libel and misuse of the courts for headline purposes. Again, the amounts and the specific charges were less important than the publicity they achieved. Last week, in the wake of the federal indictment, , Kleindienst took to television to speak with pride ; of his achievements: "One of the most intensive ? [investigations] that the Department of Justice and the FBI have ever been involved in . .. some 1,500 persons were interviewed, 1,800 leads were followed, 33 agents were involved, 14,000 man hours, 51 of the ? 59 FBI field offices were involved." ? "And that," he told his interviewer, Elizabeth ? Drew, "is a great credit to justice in this country." Nevertheless, the Justice Department investiga- tion gave no answers to questions raised among lawyers concerning its deviation from standard pro- secuting procedures in the Watergate case. There was no finding, for example, concerning ? who instigated the break-in and alleged bugging of -? Democratic headquarters, or who financed it. None ?Continued on Page 13 "RAT r" trr111", IT17C-? C, irT,?111-r% ?Ir Approved For Release 20111163/041:-CIN=RDP60-01601R 26 SEP 7972 ,Y01;111R1 P. 113:61727111?E ? ? m wr7 STATINTI_ gate ri uTer9 To anyone who has spent much time close to the center of a campaign, the so-called Watergate "caper" is a. puzzlement. Like Inspector Maigret, one looks first for the motive. Why bug Larry O'Brien's office? Everything that occurs inside the Democratic National Committee is public knowledge wiihin about half an hour, and if anybody thinks that the real deals would take place ?there, he needs a good course in politics. The serious stuff is discussed in a Senate "hide-away," or in a liv- ing room in Chevy Chase, or even on the golf links. . Thus, for openers, it would seem that whoever laid this one, had an I. Q. problem. Now whatever you may think about President. Nixon's other dimensions, one thing he does not have is an I.Q. problem. Moreover, if Mr. Nix- on has "Ifitlerian" tendencies (as some Demo- crats have absurdly suggested), the bugging would have been a real professional job ? it would never have been turned over to that crew of incompetents. In short, I believe that the President was as shocked as the rest of us and I believe in his personal innocence. HOWEVER, as the head of his party, Mr. Nixon has a professional obli2ation to keep Ids troops in line, and here ?I suspect ? is where the real problem arose. Partly this 'is because the Republicans , have so much money they don't know what to do with it, and money draws marginal character S into politics like a passive magnet. In 1964, when we were wallowing in green stuff, not a day passed without a dozen characters turning up with "projects," and there were always empire builders in the Democratic organization willing at least to Somehow or other; for example, we used to get advance texts of Sen. Goldwater's key speeches. The consequence of this was that. before Goldwater had even opened his mouth, we had five speakers primed to reply. Maybe a he sent them over as a courtesy, but all I know is that when I innocently inquired how we got them, the reply was "Don't ask." GOING BACK TO 1960, in both primaries and the general election the late Joseph P. Kennedy Sr. had an intelligence network that put the FBI to shame. WITHOUT GOING INTO DETAILS on a matter that is currently in the courts, I have a hunch that the Watergate "caper" developed along the lines of the following scenario: I. A group of men with intelligence ex- perience approach a middle-level, but upwardly mobile member of the President's political ap- paratus. In effect, they tell him that they have reason to believe they can prove that Demoe 'eratic Chairman Lawrence O'Brien is on the take, that is, that he is engaged in yarious private cleals. It will take a little money, but they are sure they can bag O'Brien. FM the record, J believe O'Brien is clean?but given the background of the men involved, my guess is that they would look for personal rather than 'political dirt.) 2. The political operative is queried as to how this can be done. He is told "Don't ask.' Ile doesn't. Instead he meditates on what a feather it would be in his cap to get O'Brien in a suitcase, on how rapidly he would rise in the esteem of his superiors. True these guys want $100,000 plus, but they must know their business, those CIA connections, and besides ? . . what's $100,000? 3. The political operative goes to the direc- tor, of "Black Operations" and informs him that, with $100,000, he can bring O'Brien down. "How? . . . "Don't ,ask." He doesn't ask either, but digs up a' miserly $100,000. And the game is ? on. . . As 'I said, I'm certain that the President knew nOthing about the business, but his cam- paign staff seems to have recruited some pret- ty strange mess troopers. It is certainly Ids responsibility to clean house. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/0/04:0ABRDP80-01601R0002gWitfil-2 2 6 SEP 1972 Consporacy *rra Watergate seand NEW YORK ? The U.S. public may never learn the most impor- tant facts about the Republican plot to bug Democratic party national headquarters in the Watergate Office Building in Washington, D.C., the New York Post reported Monday in a story from Myrtle Beach, S.C. Assistant Attorney General Henry E. Petersen, chief of the Justice Department's criminal division, who directed the "investigation" of the Watergate plot, told Federal prosecutors gathered at a national conference there that a three month "probe" had not revealed the "real reason" for the plot or the identity of other persons who may have been involved. He also said he expects that "the jail doors will close" behind the seven men indicted without their revealing what they know. Bernard Barker, one .of the seven, a former CIAagent, has already said that; in this kind of business, the persons involved are ready to take the consequences without exposing the "higher-ups," Petersen's statements leave unanswered such questions as how funds contributed to the campaign fund of the Committee to Re-elect the President 'got into Barker's Miami bank account after $89,000 had, been ."laundered" by being passed through a Mexican bank account and other known facts which link the seven directly to the committeeand the White House. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/0311)4 scumreso-gliorigin DAILY WORLD (Turvq.?, ,g,tei ? kf 0 0 0 Not only have two former White House aides '? former only because they were transferred to work on the Committee to Re-Elect the President ? been in- dicted in the Watergate political spying scandal, but links lead directly to high officials of the White House and Administration. The links lead to the CIA, FBI, De,' partment of Justice and the political underworld of counterrevolutionary Cubans, Mexican "connections" and other elements linked by their ultrarightist, fascistic political views. ? One line leads from the Watergate scandal to the scandal of the $10 million collected by the Republicans before the April 7 deadline when the new law which re- quires publication of the names of contributors and the amounts went into effect. Charges of irregularities have been made by the General Accounting Office (GAO) and are still being investigated. Destruction of ?records to hide. the Republicans' operations has been reported by the Washington Post. "Following the Watergate break-in, two of President Nixon's top campaign officials directed a massive 'house cleaning' in which financial records were de- stroyed and staff members were told- to 'close ranks' in ? preparing a public response toethe incident, according :to sources;" the paper reported (Sept. 20). 'The two campaign officials were former Assistant ? ? Attorney General Robert C. Mardian, now political co- ordinator of the Nixon re-election campaign committee. and Frederick La Rue, a former White House aide, now special assistant to Craig McGregor, director of Nix- ons campaign. According to the Washington Post's sources, Mardian and La Rue Were instructed by John N. Mitchell, former Attorney General, former campaign manager, to take charge of "developing the committee's response," that is, covering up. What the Nixonites did in this case was to take the police-state, fascistic type of operations, for which the CIA and FBI are notorious, into the democratic, political arena ? just as the Nixonites have used such methods against the peace forces, workingclass leaders, dissent- ers and Communists. This marks a dangerous extension of developing police-state tendencies. The Watergate bugging scandal, the $10 million sec- ret election fund and the favors promised in return for it are two aspects of the cesspool of corruption. The ITT (International Telephone & Telegraph) scandal of the Spring is fresh in our memories, in which ITT pledged a huge sum of money put at the minimum at $200,000 in return for favorable treatment in anti-trust action by the Justice Department, according to charges made by Jack Anderson, nationally syndicated column- "' 1st. In this case, the corruption involved the Justice . Departnient and reached the White Housealso. Another in the stream of scandals which victimize the masses of people and enrich those who alrcaliy have too much is the big grain shell-out of 1072, whereby grain traders (not the farmers) benefited by an esti- mated $132 million above the normal profit in the sale of wheat to the Soviet Union. The difference was the amount of the subsidy paid by the government on sales made abroad. It represents the difference between the domestic and world market prices. The grain dealers benefited from inside information ? that a subsidy of what came to 47 cents a bushel would be paid for grain registered as sold during a- period speci- fied by the Agriculture Department.. The National Farm- ers Union charged (Sept. 18) that the six private grain traders involved in the sale of the 400 million bushels of grain to the Soviet Union could have benefited by as much as $100 million (another estimate is given above) by careful timing of their purchases and applications for government export subsidies. The phone ,call which Carroll G. Brunthaver, assist- ant Secretary. of Agriculture, admits was made was one way this information may have been gained. But the links between grain exporters and the Agriculture De- partment are very close, as witness the move made by ? Clarence D. Palmby from a post as Assistant Secretary of Agriculture to a top post with Continental Grain Company, one of the companies which sold wheat to the Soviet Union. Palrnby accompanied Secretary of Agriculture Earl Butz in April to Moscow for talks on U.S. credits for the purchase of grain, lie protested he had not used any special knowledge he had. Whether he did or not is not the main issue. The Department of Agriculture serves the biggest monopoly interests in farming, not the rank-and-file of farmers. Under the Nixon. Administrae tion this prevailing situation has been swung even more to the benefit of the agribusiness interests. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/WifARIA-RDP80-01601 25 Sept 1972 STATI NTL ZEALOTS FOR NIXON )11r)7,7 r,517(r-, c71,t fl.;EZ r.; /ZELL 1\67 cf1T-'37.7 Vur,P\671,r).. C.' \ ) " \/ . j? ,40 , Washington "Now this is the kind of thing you expect under a person like Hitler." ?Sen. George McGovern Operating within the Republican Party is 'a relatively un- controlled group of right wingers, the ideological heirs of the Joseph McCarthy Death's Head units (Totenkopfver- blinde) of the mid-1.950s and of Goldwater's ill-fated Putsch in 1964. They do influence policy at the highest levels, but they have recently become much more restless and much more frantic to widen their sphere of influelice as they unhappily .watch President Nixon venturing off to Peking and Moscow and taking actions that they hardly recognize as coming from the, Dick they thought they knew, but now aren't so sure. They operate along the fine edge of fanaticism, and as is always the case in, such an environment they sometimes fall off, not only to their embarrassment but to the extreme embarrassment of the very person they most want to influence. Such an event occurred in unforgettable style in the early morning hours, ,beginning between 2 A.M. and 2:30 A.M. on June 17, in what is known Night of the Corporals" (Nacht der Korporalen). At about that hour the Washington police cornered five men inside the Democratic National Committee headquar- ters in the Watergate office building. They might have claimed they had come by to see 'former Chairman Lawrence O'Brien during the day and, falling asleep, had been locked in by mistake; but it's not likely that that story Would have gone over with the cops, since the five were wearing surgeons' rubber gloves, were weighted down with eavesdropping equipment and burglary tools, and were armed with Mace. They also carried fifty-three $100 / bills?which, the experts say, is the denomination favored by the CIA in financing its covert operations. Diligent newsmen later discovered that the five intruders were in fact only part of a group?the others got away? who had been flown in from Miami, whisked in a 1972 Chrysler to luxurious quarters - in the Watergate Hotel and fed an elegant lobster dinner before being put to their Spionieren inside Democratic headquarters. The com- mon denominator of the group was Cuba. Each of the five reportedly had been involved in some way in the disastrous Bay of Pigs invasion of 1961. Two of the intrud- ers are worth special attention. as "The r ? James W. McCord, 53, Texan, Baptist, Air Force re- serve colonel, and for nineteen years an employee of the /- CIA before?the agency claims?he left it in 1970. Mc- Cord was security consultant to the Republican National Committee and to the Committee to Re-elect the President, the l'atter hiring him last January at a take-home salary of $1,209 a month. He had an office in the committee's. headquarters at 1701 Pennsylvania Avenue, kittycorner from the White House, Colonel McCord's Air Force reserve assignment (which they claim he quit four months ago) was to a special, secret fifteen-man squad which spent its time making up a list of "radicals" who presumably would be put in "camps" in the event of war; the unit also set up plans for censoring news and -mail, and in other ways suppressing dissent during the next war. Tad Szulc of The New York Times reported that two of the Watergate intruders were known to have connec- tions with an extremist right-wing group of Cuban ex- patriates known as the"Ex-Combatientes Cubanos de Fort Jackson," about 800 strong, sonic of whom are committed to "direct action to combat what they viewed as left-wing causes in the United States." Szulc's sources also told him that these right-wing Cuban nuts had "some contact" with the military reserve unit to which McCord had at one time belonged. :The second of the Watergate Five worth special. nortiee ? is Bernard L. Barker, 55, an American citizen born and raised in Cuba who served with Castro's forces before the revolution came to a head, but later fell out with the Cuban Prime Minister and moved to the United States; reputedly, he was the CIA's finance officer (Schatzmeister) in the Bay of Pigs .organization, and since 1961 has been on the CIA's payroll. In an interview with Walter Rugaber of The New York Times (September 12) Barker portrayed himself as motivated by patriotism, not profit, and re, peatedly stressed his fortitude under interrogation. Having ;! resisted Nazi coercion (a bombardier in World War II, he 4, was shot down over enemy territory), Barker expressed confidence in his ability to withstand American methods ? of questioning. Indeed, he so preened himself on his taciturnity under duress, agreeing proudly with Rugaber that he is no "squealer," that one is forced to the con- 'elusion that he is choking back information that would rock the country and shatter the GOP. Two of the Watergate Five were carrying little - address books in which appeared the name E. Howard , Hunt, Jr., and after it the notation "W. House" in oneA/ book and "W.H." in the other. Could that W., by any chance, stand for White? For twenty-one years, from 1949 to 1970, Hunt had been with the CIA?he was another of the key organizers of the Bay of Pigs thing, Approved For Release 2001/03/04: CIA-91R6P8012046011R00020040000112irken. He then 'continued Approved For Release 2001/0WW: ellkaRDP80-01601-R0002001 2 I SEP 1972 111.1i-d FT:I-Ill r ; (7?,11-74/ C> " 1;7\ " Vt 171.i/7 rl . ? FIT STATI NTL Special to the Daily World NEW YORK, Sept. 20?Charging illegal electronic against them, Daniel Ellsberg, Anthony Russo? Tr. and Pentagon Papers case have filed suit seeking almost $1 federal government. Named in the suit, filed yester- day in U.S. District Court in Wash- ington, were _10 government offi- cials, including Defense Secretary Melvin.Laird, Secretary of State William Rogers, FBI director Patrick Gray Iii and CIA direc- tor Richard Helms. David Rein, Washington counsel for the National Emergency Civ- il Liberties Committee, represent- ing the plaintiffs, said the suit grew out of admissions by govern- ment, attorneys in the trial of. Ellsberg and Anthony Russo, Jr., in Los Angeles on July 21. The wiretap in question is the same that halted the Pentagon ? Papers trial in Los Angeles after a jury was sworn, when the de- fense learned that the government had overheard through a wiretap either a defense lawyer or con- sultant in a conversation with an outside party. . Not approved by a judge The suit charges that the wire- tap was not approved by a judge. The Government claims that the tap was part of "foreign intelli- gence" work and did not need court approval. Because the Government has ? not disclosed which agency plant- ed the wiretap, or which lawyer or consultant was overheard, all lawyers and consultants for the defense sued the top officials of all Federal agencies that use wiretaps. Plaintiffs in the suit, including chief defense attorneys Leonard Boudin ? and. Leonard Weinglass, alleged that members of the de- fense team, except Ellsberg and Russo, "have been overheard by unwarranted electronic surveil- lance. . :from June 19, 1968, to the .date of this complaint, and that such overheard conversations in- p-71. [71 4 Li id 1 ri77-) K:71 tc.,71 71, surveillance had been used 17 of their associates in the million in damages from the Such eavesdropping, they said, violated the defendants' rights "to the effective assistance of coun- sel guaranteed by the Sixth Am- endment," and their own rights to "freedom of speech guaranteed by the First Amendment and seiz- ure guaranteed by the Fourth Amendment." Ellsberg and Russo asked for $50,000 each, to be paid jointly by the defendants. Each of the 17 other plaintiffs asked individually for $50,000 punitive damages and $100 per day of surveillance since June 19, 1968, or $1,000, whichever is higher. Former Senator Charles Good- ell (R-NY) is also a plaintiff. Appli U0 caiddiAVotiaiiko the Ile 041703/04 : CIA-RDP80-01601R000200190001-2 STATINTL Approved For Release 2001/03/04: CIA-RDP80-01601R0002 DAILY WORLD 20 SEP 1972 , r, ; v , 11V1reilV.:1. (,.(,?,,[tiN tn2 ts WASHINGTON An assortment of former White House aides and Nixon re-election campaign officials, former CIA and FBI operatives and counter-revolutionary Cubans pleaded 'not guilty" yesterday to charges they conspired to spy on the national' Democratic Party heath quarters. Of the seven arraigned, five were arrested at gun point in the headquarters in the early hours of June 17, with bugging equipment in their possession. The two others are alleged to have been on guard outside. Howard E. Hunt, who worked for the White House until March, on entering the courtroom said aloud to his attorney, "I've never even been in a traffic court before." Prosecuting attorney Earl Silbert said Hunt had traveled under an assumed name to New York and California when, the FBI tried to question him about the case. Hunt spent 21 years Work- ing for the CIA and has underground contacts. G. Gordon, Liddy, a former White House aide who resigned his post to take the job of financial counsel for the Committee to Re-Elect the President, is a _former FBI agent who wrote a movie still used by the FBI and police in training. In 1909 he was appointed assistant to the Secretary of the Treasury and worked on task forces on organized crime, drug abuse and explosives control. At the White House, Nixon conferred with Republican congression- al leaders Tuesday to assess the effects of the latest development, exposure of the upwards of $350,000 secret fund for various kinds of poli- tical dirty work, the Watergate scandal and related issues. The Repub- licans continue to insist that the White House is in the clear, although the links extend right into the offices of high aides. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 Approved For Release 2001/6/614TaA-Ki5080-01601 2 0 SEP 1972 STATINT T,--r , till/4.-44 feet, ? )V41 , ,,,L 11 t ) .Ir'ie ?E, ,,, .,..?..???, ..,......e. e, J, if., eel, ..te,i -1'' kti7'.4,'' IP ,i.:' (11/ L, tfj' (::' 17 r 1,Y.:;:-Tti-tr f IL -I- 'irTh' .r- - - , r - tr ,,r, -N17,n1, ,..; rp 0 (ji 1 '''.! .; \,1...,4 Li U.A.,/b V:,..;2, iiia n' did ails about, the case to Other sources, however, said I come to light. that Odle removed records! By Carl BernsteM and Nixon committee sources, Spokesmen for the Nixon that weekend from McCord's! ' and. 13011 Woodward included the following: committee have not contested office. . Washington Pot,t, mall Wriiers 0 Alcmos dc!scribi n ng wire- ,, . ie existence of memos made "Everytime Rob (Odle) Following the Watergate tapped telephone converse- from the alleged wiretapping would go into McCord's office break-in, two of President tions of Democieitie Party offi- Nixon's top campaign officials dials at the Watergate. The at the Wtttergate, although he would order everybody else several top campaign officials out of the area," said one directed a massive "house- memos each began with the have denied receiving thein. source, 'cleaninp," in which financial lphrase "Confidential in for- ,i'he memos, according to ex- Later, when the FBI began records were destroyed and linant saYs," therebY making it FIB aeent Alfred Baldwin, a looking at committee records staff members were "d to I possible that ilimse wiln road self-described participant in in its ievestigatioe of the Wal- "close ranks" in PreParing a them did not necessarily real- the wiretapping operation, evi it was Odle public response to the :1116. in the contents had come were sent to several tot) offi- who dibriCIZIellg' investigators dent, according to sources, from wiretapping. cials of the Nixon campaign from office to office, accord- The two campaign officials * A list showing that three' and at least one White ltouse log to several sources. . were identified by the sources (Op Nixon campaign officials eakie, 'as former Assistant Attorney withdrelv -about $300,000 from 1 As for the secret fund, During the week following _ General Robert C. Mardian, a secret fund earmarked for 1 spokesmen f r ti . N'? - . the break-in, said one source, now political coordinate] of especially sensilive political paign organization have never "ittardian and LaRue went the Nixon re-clection commit.- projects ? including intelli?I described its purpose, except HloiceeildtiWata)).iloillidV bier'irlicIel?lifm?1i')nilaat-- 'tee, and Frederick. La Rue, pence gathering about the to say that it was used for ing," including a former White House coun T - Democrats. he three"records officials, legal ends. The existence of "re- of is memos and se.1 to the President mid sPe- all ex-White House aides, arc the fund, which apparently payments to peo- eial assistant to the director Jeb Stuart Magruder, deputy contained as much as ?$700,000 pie." By the time FBI agents . of the Nixon campaign. , Corn- director of the Nixon re-elee- at some moots, was described arrived in the company of C. A spokesman for the lion committee; Herbert le by th e e General Accountin Of- Odle, the relevant records hadbeen . destroyed,.. sources mittee for the Reelection of Porter, scheduling director cif lice as an "apparent" violation said, the President said the commit, the campaign; and G. Gordon of the new campaign disclo- tee would have no response , Liddy, the former finance sure law. People known to have infor- other than to say that t" counsel of the Nixon commit- On June 10, the Monday motion about the destroyed sources of The Washington . records were advised by tee. (Liddy was indicted with after the Watergate break-in Post are "a fountain of mism- six other persons last week on several meetings v,:cre called Mardian, La Rue - and others formation." charges of conspiring to bur to tell the committee sole, "to stay away from certain the headquarters of the Demo- that the Nixon campaign or- " areas" ,when being questioned The sources said the "house- cleaning" resuited 'after Mar- by investigators, said another ci."atic National Committee in- ganization had nothing todo source,. than and La Rue were in- , ? Watergate) With the incident, according to structed by John Nl. Mitchell, suo'e the . then campaign chairman, to books listing. cainPaig:m co.n?tri- At one sue'h meeting, Biddy worked in offices where ice- Sortie employees who As many as seven ledeer sources. - take charge of developing the , butors and the amount the v made a brief speech denyine ,ords were destroyed suddenly committee's response to tile gave before April 7, the e ny ffec- that a bugging at the Watergate Live date of a new federal c had ec-ci.dhpaign officilis I received unexpected knowledgepromo- of the wate),_ promo- ( ions including aides to Mc. June 17. Con disclosure law requiring gate bugging, the sources said. Cord and employees in the fi- The destroyed records, c e a- full public accounting of all He went on to describe James cordieg to law nforcement li na ice division, several sources contributions and exPencli- W. McCord, the Nixon Com- ' "We were never told in so tures. (Previously, it has beetn mittee security coordinator ar- were destroyed in April.) many words, 'Don't talk,' said reported that these records rested inside the Watergate, as a "bad apple who had a committee employee. "It was - According to sources, an In- acted on his own 'authority. always, 'Hold ranks,' or, 'keep , 'tergral part of the re-election Among those who partici- the ship together.' " ? i committee's response to the pated in the destruction of Steps were taken to insulate. ',rune 17 break-in involved for- committee records, according the Nixon campaign staff from !bidding employees to talk to to Nixon campaign employees, the 1.?..ess. Sally Harmony, who ;the news media without spe- was Robert Odle, the person- had served as Liddy s secre- cific clearance?even to the nel director of the re-election tarY, ' became Odle's secretary :extent of giving their job ti- eommittee, and told a reporter: Im under tles, in. some instances. Following the arrest of five strictinstructions from the Some - employees, particu- persons inside the Watergate committee not to talk to any- larly those who were aware at 2:30 a.m. on june 1'7, body. You'll have to call the .. that documents had - been de- sources reported, Odle' spent Press office if you want to stroyed in their offices, said virtually the remainder Of the know anything." ? :they were offered advice from weekend moving from office Another employee of an of- superiors on how to respond to office inside the headquar, Lice where records were de- inquiries from FBI agents and ters of the Committee for the stroyed complained of being others investigating the Wa- Ite-election of the President at i followed recently to a lunch- tergate case. 1701 Pennsylvania Ave. NW, eon appointment with an old . Other employees received Some sources said Odle's friend who happened to be a unexpected promotions in the weekend activities constituted' reporter. The reporter ex- weeks following the break-in, an "inventorying" of what was pressed skepticism 'but *that according to colleagues. -contained in committee files, afternoonthe employee Partly because of the effec- and th'at no records were ac- phoned back to say a superior Approved For Rietease0200140,3164's:Z A4RDP80401601ROOD 00190001.dons sfruction of records and other Mardian and LaRue. i ete, nue' t lunch about the "House-cleaning" measures, it from a \Vest - Coast trip on conversation. . has taken three ?mune for Morale:re .Tune le, Wit 107, STATINT Approved For Release 2001/03i094S.id'j-kDP80-01601 By Martha M. Hamilton ? violin-to/1 rost Staff WrIltr James W. McCord Jr., in- dicted Friday by a federal grand jury on eight counts relating to an appa'rent bug- ging attempt on Democratic national headquarters at the Watergate, spent 1971 teach- ing college students how to make buildings secure from intruders.. For two semesters, the former high-ranking CIA se- curity official introduced students to law enforcement and criminal justice and "in- dustrial and retail security" at Montgomery College in Rockville. At least one student was excited enough to agree to join McCord, 53, in a late May attempt to plant eaves- dropping equipment in sistant administrator for McGovern headquarters, crime insurance in the De- then on Capitol Hill, accord- partment of Housing and ing to a source close to the Urban Development, also Watergate investigation. But spoke. the student failed to show, Lt. Gen. Benjamin Davis, The industrial and retail assistant secretary of Trans- security course was a semi- portation, was listed as aschespeakernar, featuring guest speak- scheduled speaker asfall, era from government and in. but didn't talk. The notes of a student dustry, including former Most of those contacted who took the course and re- CIA officials, with McCord who lectured McCord's view questions passed out as moderator. classes said they speak to by McCord suggest a dry, other stuclent groups, train- factual, statistical approach 1:1 One session featured a q.) 11 (` ,4'; Tt't ? UAL-IL 1 '79 CY? ?rn I/ft (11.?4"11 STATI NTL Ernest Evans, chief inves- Small Business," said . he* of-ern-fie cited by one recent tigator for the Senate Select didn't know McCord before news journal article?" one Committee on Small Busi.- the former FBI and CIA . review question asks. "What ness; Wilfred J. Garvin, as- agent got in touch with him . special sales and Profit sistant administrator for the about the course, problem does' the sole pro- Small Business Administra- ell, blow my mind when I prietor-retailer in a ghetto tion, now on leave on fellow- found out he was involved area face from crime ship to Brookings Institute iin the Watergate business," losses?" another asks. and William J. Cotter, assist- Evans said. McCord was "a McCord, who had degrees ant postmaster general for fantastically nice guy" who from the U n i v e r s it y of security, lectured the class was trying to give his stu- Texas and George Washing- in spring and fall of 1971. dents .. a modern attitude ton University (not Baylor, A senior special agent in about crime prevention, he as earlier accounts have charge of training for thesaid. . said) seemed committed to U.S. Bureau of Customs, Cotter, who a p o k a to academic interests, accord- someone from the justice Mr-Cord's students once Mg, to George P. Morse, who Department's Bureau of about mail and postal sr- also spoke to the course. Narcotics and Dangerous rity, said he knew McCord Morse, former director of Drugs, and James Rose, as- when they both worked for V protection and safety for the the CIA. McCord worked in National . Institutes of the CIA's security division Health, who knew McCord for 19 years. The second only slighlty from when he time he was invited to speak worked for the CIA, said he to the class, Cotter turned the honor over to a subordi- nate, he said. "Frankly, the group didn't stimulate me," ? he said. lecture on bugging by a MAI- ing sessions or classes and to the clandestine business. . were not going out of their "What were the total costs dent who was also a profe.s sional security man. It was way for McCord. None re- ceived a fee for his efforts, illustrated with Slides and a according to their own ac- handful of bugs another counts, student remeMbered. Evans, a Democrat who Among other things,' the helped put together the Sen- course focused on "residen- ate committee's report on and multistory secu tia-- how to protect buildings "The Impact of Crime on l. rity' like the Watergate, accord- ing to a topic outline, McCord didn't talk poli- ties but came across as con- ?servative nonetheless, a stu- dent said. "I got the impres- sion he was a strict conserv- ative. I don't think I ever saw him wear a colored shirt," said the student, who also said McCord Seemed ex tremely competent in the se- curity field. "I was surprised that the 'gear he was suppOsed to have been picked up with. was obsolete," he said. "I had the idea he could have gotten the most modern equipment." McCord hinted at friends in high places but didn't name them, the same stu7 dent said.App found it out of character for McCord to be involved in ci their the security consulting business or the Watergate affair. Mc Cord ran a security consulting business, McCord Associates, inc., in Rock- ville, and coordinated seen- Tity efforts for the Nixon. re-election campaign before his arrest in June. roved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL STATINTL STATINTL Approx#01 /03/W1`,CIA- 1 8 SEP 197 0The- Spies Who olioeos,terheiira c,\'neard bteof jme e Came in For the Heat Three months ago, the predawn raid on the Democratic National Com- mittee headquarters inside Washington's elegant Watergate complex seemed lit- tle more than clumsy political derring-do pulled off by overzealous, aging and in- ept James Bonds. In the time since, the tangled affair has turned into the politi- cal hydra of the Presidential campaign. The tearh's report: ? THE WHITE HOUSE 'PLUMBERS' The four former CIA operatives and - the cuban locksmith arrested at gun-? point inside the Democratic National. Committee headquarters vere 110 is0-? ? lated band of zealots. And the Water- gate raid was by no means an isolated ?incident. As early as the summer of 1971, a small, tight, political intelligence team was forming up in the basement of- fiees of the Executive Office Building next door to the White House. And its - impact would soon .be felt all across the 1972 election .campaign. The team was originally formed strict- Each time Republicans have tried to ly as a pack of in-house watchdogs. in smother the controversy, some fresh em- the fall of 1971, increasingly concerned . barrassment has popped up to bring it ? about a rash of security leaks that began back to life. And as the revelations con- with the Pentagon Papers, Presidential tinue to pile up, the Watergate affair has assistant John D. Ehrlichman quietly emerged as the most dramatic clear-cut tapped his able, aggressive deputy, Egil disclosure of major politica] espionage in (Bud) Krogh, 31, to plug the leaks. Thus . the history of U.S. Presidential elections. the White House "plumbing" crew was It is a curious and instructive tale, of- born. Presidential troubleshooter Charles fering rare glimpses into the back rooms V. Colson rang in an old Army-Navy of American politics and the antics of Club friend named E. Howard Hunt, a obscure soldiers of fortune embarked on retired CIA career spy, prolific pulp a spy-thriller escapade. It features, in . novelist and public-relations speech- 0 addition to the bizarre Watergate break- in, a special squad of White House in- writer, as a $100-a-day consultant. From Treasury came G. Gordon Liddy, 42, vestigators eavesdropping on the Admin- a bright, ambitious former FBI agent istration's own telephone calls; a se Ties and Duteliess. County, N.Y., prosecutor - of espionage coups against the Demo- with a flair for the . dramatic (once, crats involving electronic eavesdropping to make a point in a summation, Liddy and photographs of documents from fired off a pistol loaded with blanks in . Democratic files; $114,000 in GOP cam- s the courtroom). i paign contributions apparently divertedj The pluinbers stuck to their assigned 1 to one of a team of adventurers with ! task?tracing leaks in the newspapers and v CIA and anti-Castro connections; an in- ii ., eavesdropping on the phone conversa- tricate "money washing" operation aimed / tions of White House staffers to detect? ' at. hiding the identities of political donors , 1 by channeling funds through a Mexican signs of disloyalty. But as ?fall turned to _ / bank; the secret transfer of $25,00 in winter and re-election strategy became a cash on a Miami golf course, and :1 more urgent concern, Hunt's and Liddy s -- n $350,000 stashed?and apparently unac- ,-En???;itt.ention began to shift from internal Ad- counted for?in a Republican Party of- ? mistration security to intelligence-gath- fice safe. The affair has been painfully embar- rassing to the Administration on several' counts. Besides the spying issue, it has focused attention on the whole Nixon campaign fund-raising operation?espe- cially the $10 million raised from big ' givers before the April 7 deadline under the new law that requires donors to be listed. It has also put the Administration into the position of having to investigate itself while resisting demands for a spe- j newly formed ComMittee to Re-elect , the President. In October, a husky, bald- dal independent inquiry. The full scope of the Watergate caper ing ? electronic eavesdropping specialist itself will be charted only when indict- named James V. McCord Jr., 53, who ments are returned and the case comes had spent nineteen years debugging to trial?and even then some of its dark- , CIA installations, joined ' the committee er byways may never be illuminated. , as security coordinator. In December,. But for a period of weeks, a special Liddy himself moved over to the corn- / NEWSWEEK investigative team led by mittee. In November, Hunt begana series Nicholas I forrock and Evert Clark has of phone conversations with a Miami man ering that might be used against the Democrats. They began carefully assem- bling potentially damaging doSsiers on any and all possible Democratic Presiden- tial and Vice Presidential candidates? and Hunt in particular launched a fresh investigation into Sen. Edward Ken- nedy's tragic automobile accident at Chappaquiddick. At about the same time, the focus of the operation began to shift toward the ar, er, the moneyedson o a u mother and an American father, began assembling a loosely knit team of his own from the Cuban community in Miami. From his own real-estate filen, Barker tapped Eugenio Martinez, a friend of fifteen years who, like Barker, had helped smuggle refugees out of post- Batista Cuba. Frank Sturgis, 219, (former- ly Frank Fiorini), an ex-marine given to gun running and girls, joined him, And at Miami's Missing Link Key Shop Barker found a 45-year-old locksmith named Virgilio Gonzales, '10 what extent GOP higher-ups .knew of the team?and approved of its activi- ties-is unclear. "I suppose it VVaS a 'Do it, don't tell me how you do it' situation," 'said an insider. The full extent of the team's operations will likely remain a mystery, too. But by last spring a pat- tern of anti-Democratic espionage had begun to unfold in Washington. - On May 36, the law offices of the eventual Democratic Vice Presidential candidate, R. Sargent Shriver, and the party's credentials committee chief, Pa- tricia Harris, across the yard from the Watergate, were broken into?though nothing appeared to have been stolen. There is no proof that the Watergate five were involved- in this or any other break- in before June 17. But on May 26, five men checked into the \Vatergate Hotel under the same names that the Water- gate Five were first to give to the police after their arrest.* They stayed through the Memorial Day hohday. While they 'were there, two attempts were made to break into the DNC. .? On the night of the 27th, Lawrence O'Brien charged last week, some of .the same people later arrested at Watergate. made an abortive attempt to plant an eavesdropping device in Sen. George 1\1eGovern's preconvention headquarters on Capitol Hill. O'Brien also charged that hfs own phone and another DNC line had been tapped for weeks before the raid, and: monitored "on a regular daily basis", from Room 723 in the Howard Johnson Motor Lodge across the street. ? Only a single hint as to the fruits of all this snooping has so far come to light. A fortnight ago, Michael Richardson, 29, who works in a Miami photo shop, told Miami' authorities that two men came to his shop on June 10?a week be,fore the Watergate arrests?with 38 frames of .35- mm. film to be rush-developed. The pic- tures, said Richardson, showed surgical gloved hands holding a series of docu- ments against a shag rug. Some bore the DNC letterhead; some, the signature of Larry O'Brien. At least one, Richardson states], appeared to be a dossier on a prominent woman Democrat?possihly Pa- tricia Harris. Shown a random assortment: of mug shots, Richardson unhesitatingly identified Bernard Barker and Frank been at siiiilip-A-ka4sh?ig* jArrol isty4ar4twribbitiril 146" " 0 iiblosd 616146 gi g t th fi "1. Mexico Mrflb'artitia, continued elsewhere?to try to stitch together the Cuban-born Bernard L. Barker. A mfri,iffiftw, he anrcr F N.011 aejnoi pick up the developed pictures. While all this was going on, the Demo- crats?incredibly enough?teok no steps to beef up their own office security despite evidence of break-ins. Demo- non- THE MONEY LAUNDRY It was the 53 $100 bills that opened up one of the first big leads. U.S. Treas- ury records showed that the bills had been part of a batch of crisp new hun- dreds that had been sent to Miami banks ?including Republic National of Miami, where Barker's real-estate firm kept an account. And a check of Republic's pho- tostats opened up a new dimension in the ease. On April 20, it turned out, Barker de- posited four checks totaling $89,000 that had been drawn on the Banco Inter- nacional, S.A., in Mexico City, by a wealthy, 69-year-old labor lawyer named Manuel Ogarrio Daguerre. Through his son, Ogarrio repudiated the signature on the checks and denied any hand in the entire affair. But the "washing" of cam- paign contributions by funneling them through obscure surrogate "donors" to shield contributors demanding anonymity has long been a common campaign prac- tice. And Ogarrio's name on the checks seemed more than coincidental. Until re- cently, his firm, Creel and Ogarrio, op- erated out of a suite of offices in the same building as the Banco Internacional branch from which the checks originated. And Creel and Ogarrio represented a number of prominent U.S. corporations? including Gulf Resources and Chemical' Co., whose president, Robert II. Allen, happens to be the Texas finance chair- man for the Re-election Committee, Curiously, the day before the four checks were drawn, Gulf Resources and Chemical, which closed its Mexican op- in fact, was virtually the events of the early of June 17. itf,(1 4114' Ofpi.11R,IPP8r.P0 f681120q3020p1901'4:11 -2 1 , 0 1 using, to answer oca a on, 1, a., vacation home, He of- fered the Nixon campaign a. strictly anonymous contribution of $25,000. The money, Andreas said, would be left in a safety deposit box in Dahlberg's name at the Sea View Hotel in Bal Harbour. Dahlberg later claimed that he immedi- ately phoned finance chief Maurice Stalls in Washington to have the sum recorded--thus beating the disclosure deadline. According to Dahlberg, he ar- rived at the hotel on April 7?the dead- line day?too late to pick up the money, and Andreas turned it over to him on a golf course two days later. Dahlberg said. that he converted the cash to a bank check for safekeeping the next morning, then flew to Washington and handed it to Stans. Stans told General Accounting Office investigators that he immediately gave the check to Sloan, and Sloan declared that he gave it, along with the four Mexican checks totaling $89,000, to the committee's finance counsel, who was G. Gordon Liddy. Whatever Liddy then did with the checks, neither he nor any- one else has made clear. But a little More than a week later, Bernard Barker walked into Republic National Bank of Miami with all five of them. When a 2 1,131 questions about the raid. Over the next two weeks, both Re-election Com- mittee treasurer Hugh W. Sloan Jr. and Mitchell himself resigned, both citing "personal reasons. cratie security, existent--until morning hours 'YOU'VE GOT US' It was just after midnight on a balmy summer night. James McCord, Bernard Barker and his three Miami teammates had registered in the elegant Watergate Hotel earlier in the day and had con- sumed a hearty lobster dinner in the Watergate Terrace restaurant. Wearing rubber gloves to guard against finger- prints, they jimmied a stairwell door, in- vestigators say, and slipped quietly up- stairs to the sixth-floor headquarters of the Democratic National Committee in the Watergate Office Building next door. The intruders taped the door latches open behind them so they could go out and come back in again with ease. Some- one filled cardboard cartons with papers from the DNC files, evidently intending to photograph them. Others slid back a ceiling panel in the office of the secretary to DNC chairman Larry O'Brien; investi- gators believe that they planned to re- move for repairs an electronic bugging device they had installed earlier. And somewhere else in the darkened com- plex, Federal authorities have conclud- ed, Howard Hunt and Gordon Liddy sat awaiting word from Barker's end that the mission was accomplished. They never got it. The only message was a signal that the jig was up. While the raiders toiled, private security guard Frank Wills, 24, spotted the tape on the basement door and removed it. When he came back twenty minutes later and found the tape had been replaced, Wills -, called the police. Three cruising plain- clothes men from the Capital's "mod squad" burst into the DNC with guns? drawn. From behind a partition, one of the intruders shouted, "Don't shoot! You've got us." The police found, either in the five men's possession or in their hotel rooms, a kitful of burglary tools, two 35-mm. cameras, 40 rolls of unexposed film, three tear-gas pens, a radio trans- mitter-receiver, two bugging devices, a wig, and $5,300 in freshly minted $100 orations in 1969, telephoned $100,000 to the very same branch of Banco In- ternacional?to the account of a Mexi- can firm owned in part by Allen and Ogarrio's law partner. And the day after they were issued, Ogarrio's checks were personally carried to Washington by Al- len's Republican colleague, Roy J. Win- chester of Houston, the co-chairrnan of the GOP fund-raising drive for the ? en- tire Southwest. Winchester delivered the checks to committee treasurer Hugh W. Sloan Jr. The money originally came from four Texas Democrats. bills. Federal investigators believe that Liddy and Hunt fled the Watergate for THE DAHLBERG CONNECTION the Howard Johnson Motor Lodge acros , the street, where they are thought tc: The fifth laundered,check that Barker deposited was too. Two days before have maintained a monitoring station ir the new campaign spending law went room 723. Barker and his crew were left into effect, prohibiting large anonymous holding the bag alone. . donations, Dwayne 0. Andreas, a Min- But not for long. Among the burglars' neapolis-based soybean millionaire and possessions, police discovered two small longtime Hubert Humphrey supporter, black address books listing the name phoned ?Kenneth Dahlberg, Mr. Nixon's Everette Howard Hunt, along with the Midwestern fund-raising chief, from his notations "\V.11." and "W. House." And eleven days after the arrests, Liddy was fired from the Re-election Committee by continued Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 ? bank vice president balked at accepting the Dahlberg check on the ground he could not verify the endorsement, Barker resourcefully?but probably illegally? used his power as a notary to authenti- cate the signature and deposited all $114,000 in Barker Associates' account. Over the next two weeks, Barker withdrew exactly $114,000 in three sepL arate drafts: $25,000 on April 24; $33,000 on May 1, and the final $56,000 one week later. Meanwhile, Sloan told GAO investigators, he was trying to get the money back from Liddy?and having trouble doing it. Sloan said that Liddy finally returned the money (less about $2,500 in what were said by Liddy to be cheek-cashing charges) around the mid- dle of May?a full month after he had received it. Interestingly enough, on the day Barker made his last withdrawal his office made two telephone calls to How- ard Hunt and one to the offices of the Re-election Committee in Washington. When he finally managed to get the cash Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 back, Sloan said, he stashed it along with other funds in Stans's office safe. And on May 25, he related, he and Liddy per- sonally walked the safe's entire con- tents?$350,000?over to the First Na- tional Bank of Washington, counted the money out before a bank officer, and deposited it in the Re-election Commit- tee's media account. As evidence that the money had been collected before April 7, Sloan could offer the GAO only a duplicate deposit slip bearing the no- tation: "Cash on hand prior to 4/7/72 from 1968 campaign Per Hugh Sloan." And Stan.s told the GAO he believed that all other records pertaining to the origin of the money had been destroyed after April 7, Unimpressed, the GAO issued a sting- ing report charging the Re-election Com- mittee with three "apparent" and two "possible" violations of the campaign- spending law and recommending a jus- tice Department investigation to deter- mine whether there had been criminal violations as well. The justice Depart- ment has yet to act on the recommenda- tion. But the GAO report thrust the whole Watergate affair back into the spotlight just when public attention was beginning to wane. . THE FALLOUT The Democrats have tried hard to make political mileage out of the case. But in the weeks since the raid, they have tasted anew the frustration of being the party out of power. A fortnight: ago, Attorney General Richard Kleindienst pledged "the most extensive, thorough and comprehensive investigation since the assassination of President Kennedy." Except, to answer direct queries from Washington, however, the FBI bureau in Miami was called off the case more than a month ago. At least one key witness?the Miami photo-shop technician ?has yet to be called before a grand -jury. The indictments expected this week, will probably name seven persons, but it is unlikely that their trial will get under way before Election Day. A Federal law requires that major criminal trials must begin within 60 days of indictments?and the Republicans are in no hurry to ad- vance the deadline. As a consequence, the Democrats' $1 million -civil suit against the GOP Re-election Committee is . stalled too. -Federal District Judge Charles Richey has ordered that all dep- ositions must remain sealed pending the outcome of criminal proceedings, and has yet to rule whether the civil case ? may proceed at all before that trial. Mean- while, the Democrats' attorney Edward ? Bennett Williams has taken testimony on the case from eight persons, including Mitchell last week. A surprise witness coming up: Richard Nixon's old cam- paign infighter, Murray Chotiner. While the legal maneuverings contin- ue, a number of investigations are still under way. Dade County Prosecutor Richard Gerstein, who first made public the five checks totaling $114,000, is look- ing into possible violations of the Florida banking laws. Rep. Wright Patman's house Banking and Currency Commit- tee is examining the money-washing op- eration south of the border. Tim justice Department, at least officially, is still checking for criminal violations of the 1971 Federal Elections Campaign Act. There are certainly enough unan- swered questions in the case for them all. Who ordered the espionage cam- paign against the Democrats? How far did it go? And what was contained in the tapes and documents seized in the Watergate arrests (which the justice De- partment refuses to reveal even to the DNC, their rightful owners)? What did Barker do with the $114,000, and, if he did not return it, from what source was the amount made up in the Committee to Re-elect's coffers? Why should Mau- rice Stans keep so substantial an amount of campaign money as $350,000 lying around in cash in an office safe? Who besides Dwayne Andreas are the GOP contributors so eager to keep their names._ secret? The Watergate saga continues? and promises to color the tone and tem- per, conceivably even the odds, of the Presidential campaign into which it so dramatically intruded. *Curiously, seydral of these names weave through the pages of Hunt's novels, which are otten set in the Miami-Cuba area. tvleCord, for example, first told police he was Edward Martin?the SZLITIC pseu- donym at least two of Hunt's characters adopted in fictional jams. In "Stranger In Town," a beautiful woman named Valdes reminds the hero of a girl named Jean. Martinez, when arrested, gave police the name Jean Valdes. The hero of a novel called "Bimini. Run" is a man named Hank Sturgis, Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2inued ? ? h Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 WHO'S WHO IN THE WATERGATE AFFAIR Colson McCord Hunt The cast of characters in the Water- gate affair has come to assume the pro- portions of a Russian novel's. here is a guide to some of the key figures: CHARLES W. COLSON, 40, special etmnsel to the President, general White House troubleshooter and hatchet man, who recommen (led fellow Brown alumnus E. }Toward Hunt for a $100-a- day job in the White House plugging Administration leaks. EGIL (BUD) KROGH, 31, Deputy As- sistant to the President for Domestic Affairs and chief of the White house leak-plugging "plumbers." E. HOWARD HUNT, 54, public-relations man, mystery novelist (some 45 titles), CIA operative (1949-1970), mid- level planner of the Bay of Pigs invasion. As a member of the "plumbers" unit, he had an ear on eavesdropping operations on White House staffers, and is believed to have been at the Watergate on the night of the break-in. Variously described as 'a very Foreign Service type who . . . knew how to operate" and "the dumbest son-of-a-bitch I ever worked with." G. GORDON LIDDY, 42, ex-FBI agent, ex-Treasury official (eased out for ex- cessive ardor in fighting gun controls), former colleague of Hunt's in the White House, former counsel to the finance arm of the Committee to Re-elect the Presi- dent (fired for refusing to answer ques- tions about the Watergate affair). KENNETH H. DAHLBERG, 54, million- aire hearing-aid manufacturer and chief midwest money-raiser for the Committee to Re-elect. Twenty-five thousand dol- lars in cash handed to him on a golf course by Humphrey supporter Dwayne Andreas dragged him into the affair. MANUEL OGARRIO DAGUERRE, 69, Mexico City attorney with American cor- porate clients. His purported signature appeared on $89,000 worth of south- western GOP campaign money chan- neled to Liddy and eventually to Barker. BERNARD L. BARKER, 55, Cuban-born, Miami-based real-estate developer with a taste for intrigue: in Cuba he worked for the Batista secret police, in Miami he helped channel finances for the Bay of Pigs operation (under the nickname "NIabho"). Probably the leader of the Watergate five, he made more than 40 telephone calls to Hunt and CRP offices the months before the raid, received $114,000 in Republican campaign checks ?and was arrested with four others at the Watergate on June 17. JAMES W. McCORD, JR., 53, former FBI agent, nineteen-year security spe- cialist for the CIA and "security coordi- nator" for the Committee to Re-elect. After leaving the CIA, McCord last year set up his own business, McCord Asso- ciates, Inc., whose first and only client was the Republican party?until McCord was arrested at the Watergate. FRANK STURGIS, 37, ex-Marine soldier of fortune with a string of aliases and a reputation as a braggart. He smuggled guns for Castro's rebels in Cuba, then switched sides and helped train anti- Castro guerrillas in Guatemala. Seven days before he was arrested at the Wa- tergate, according to a clerk in a Miami photography shop, he and Barker brought in some intriguing film that sug- gested the extent of the espionage against the Democrats. EUGENIO MARTINEZ, 49, former CIA operative involved in smuggling refugees out of Cuba, now a real-estate man in Barker's employ--and a member of his Watergate task force. VIRGILIO R. GONZALES, 45, Cuban-born locksmith at Miami's Missing Link Key Shop, where he was unhappy and sought an opportunity for new and more adven- turous employment with Barker. 4 Barker Liddy Gonzales 1.0111111111111111111110111101111111111111111111111111/11111111111111111111111111111111111111111111111a1111111111110111,11111111111i1111111illitili111111111111111111111111111111111111111111111t11111111111111111/111111111111111111111111111111111111111111111111111111111111I111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111i11111111111/111111111111111111111111111111111111111111111111111111111111111111111111111111110111110111111111111111011111111111111111111111111111111 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 ?\'" .."MeIrtracr,W4TY0W7g,70.r!ir41117s::77';'4.. TIFY7*7',71777,-- WASHINGTON POST Approved For Release 2001/03/047 GEA-ROPAT61-011TR-0 1.1774 0 3 iLAl irp By Carl Bernstein and Bob Woodward Washington Post.Staff Writer Funds for the Watergate espionage operation were con- trolled, by the principal assis- tants of John N. Mitchell, the former manager of President Nixon's campaign, and were kept in a special account at the Committee for the Re-election finance chiarman of the Pres- of the President, The Washing.! ,ident's campaign. It is pre. , ton Post has learned, . sources, including investiga- Inage campaign against the tors, other federal sources and ID c m 0 e r a ts, according to officials and employees of the I sources, Committee for the lte-election Mitchell, formerly Attorney of the President. General, resigned as the Presi- dent's campaign manager on The S300,000 fund also was , count, McCord brought him used for travel and entertain- July 1, saying it was because into the espionage operation. Trent Ilmt campaign officials his wife, Martha, insIsted hes, las a wiretap monitor on May 1_0 did not want known outside.i or 31 and told him that he i leave.t the. campaign organization, pol ics. " ? ? ! would be assigned the seine ' One source said the money was She- said at. the time that"I , task in Miami during the Dem- love my husband very much, i-ieratic , National Conventidn. but Pm not going to stand for 'thddwie aise said he was asei ? STATINTL :White House aide and several high officials in the Nixon icampaign ? including the Mitchell aides, According to Baldv,,in's ac- flina lily the same money - The Mitchell assistants, all ? in part used for routine and of whom still hold policy-make? legal intelligence 'gathering ing positions on a high level in at Democrats. President Nixon's re-election campaign, were among 15 per. The fund was kept in the Sons who had access to the se- safe of former SecretarY or Commerce Maurice H. Stens, cret fund of more titan' Commerce chief Nixon fund-raiser. It $300,000 earmarked for sensi- is presumably the same money tive political projects. that the General Accounting Included. in those projects Office cited in an Aug. 2(1 re- was . the espionage campaien Port as a violation of the new campaign disclosure law, be- against the Democrats, ?for cause it had not been properly Which seven Persons?Anc111d- accounted for, The GAO, the jug two former White House ; Investigative at-in of Congress, aides?were indicted Friday said the fund contained by a federal grand jury, 1$350,000. It could not be learned; Sources said that Stems had whether the Mitchell aides, mo previous knowledge of the who include persons who once Watergate bugging?a position worked at the White House, he has taken in public on nu- knew, that funds would specifi- I merous occasions, though he cally be expended for the pur-1 has not answered reporters pose of illegal. electronic sur- questions directly. all those dirty things that go signed by McCord infiltratel On." The former Attorney General has repeatedly denied Vietnam Veterans Against the any knowledf.m of the \Vetere War for the purpose of "em- gate bugging. barrassing, the Democrats" if ?The Mitchell aides who re-1 the veterans clemonstrated at ceived money from the secret the , account include individuals ltepublican convention, who reportedly were sent con- I 'Diesecret fund that --sup- fidential memos containing in- i \pliedj the money for Baldwin's formation obtained from a!) ter etc activities and other tapped telephone at Demo- aspects of the . inte:iligen,ce- medic headquarters. gathering campaig?. was mon- The names of those Mitchell aged ItY the "Political side" of aid-es .also appear in an ac- the Nixon re-election commit- count of the espinage opera- tee?that part directly under tion- told by Alfred Baldwin, a 'Ne,t.i,t.;',Itell's e?ntr?1---4t't Pili- self-described participant in the I kept on the financial Watergate affair who has been 1 LIIL',,,,,,,i10`0"`ctr'e`-i'ai7, st'ans. ,C:'',1'-, 1,-,,,,4,') l''' former Com- interviewed by both the FBI, kne"' '' and lawyers for the Democratic ,In some cases, individual. Party, aides to Mitchell received Baldwin reportedly was nearly $50,000 from the secret granted immunity from prose- haccount.otlsea aide extGiept6 of10,[1.0enx-11,iclii,iityo, icntnthe?xne. iini:lant,i,lee IfVelrltell:egl7iti.engcatsiei the former finiince counsel of veillance. However, zissocuites , Starts, according to the federal grand jury his version the Nixon campidgii who was told 'Ehe Post that the itides 1 sources, was,aware of the ee.e of the espionage conspiracy. indicted in the Watergate Hi it of the secret fund and He has described himself as a day, no other officials of the were aware that the money I would be spent generally "flknew that large amounts of former FBI agent who was finance operation are known , gathering information about 1 money had been. withdrawn . hired as a security guard for to have obtained money front the Demociats.in the names of Mitchell aides. Martha Mitchell and subse- the account. Some. of the Mitchell aide Only Only one accounting of theThe actual distribution of quently was assigned to moni- are among the pen-sons named special fund?a single piece of from the fund to the tor conversations intercepted ,- money - lined lede'er p frOm the tele phone of aper listing - the . De iintelligence operation was cie, a nte- ? by a self-described participant . - ' - e cram official with offices in names of la persons with ac- . inet,he . Watergate operation. i the Watergate. ; cots to the money and the - ? I as -recipients of confidential 5amount ? rdaY the FBI said thd maintained It was purposely, only agent who ever worked memos based on the tapped each received?was ' Yeste Jelephone conversations . of Odestroyed shortly , before pi iii for the Bureau with the samo -Democrate Party officialS. A spokontan for -1 1 i 17, t?he date that the new cam- i name is Alfred C. Baldwin III, ,2res-c-en.inaignfinance law requiring w (ie.! age 37, who was. an agent from :- ' Nixon s re-elNetion cOmmittec,ii tailed accounting of election 1963 to 19kb it fliwl mh, a .informed of The Post's story, .said late yesterday ,afternoon ;that "there have been and are cash funds in this committee; used, for various legitimate ; put-poses such as reimburse- mentf for expenditures for ad- ' winces on travel. However, no one employed by this_ commit-. tee at this time has used any funds (for purposes) that were illegal or improper." The PADD rovedryrF about the f IBM and their rela- tionship to the Watergate ease funds took effect, the Sources spokesman for the Nixon IT-Ct- told the Post. . leetion committee confirmed A spokesman for the Nixon that an Alfred Baldwin re-election committee denied "worked ? briefly" as a security late yesterday that such a list guard for Mrs. ever existed. s not ap- On the day it was destroyed though his name dop eMitchell, ear cm the committee's pay- the list:showed that the lar-g- roll. est individual sums of money In his account to the IMMO- were distributed to a handful crats, Baldwin said that one of of campaign aides closest to the men indicted. Friday in the 1 Mitchell, then still the Presi- Vatergate case ?James W. kotipoklogyaw daottgicirmitae,.efilarilicis- e n al s that, Nixon comm r-el e ti o committee--sentit( ce was obtained from a variety of money was used for the espio- memos and transcript of the ' hn7f,cd ronverzlt i r'i?in a continued: 0200190001-2 WASIIINGTON STAR Approved For Release 2001/03/0147: CIt-P80-0160 By JOSEPH VOLZ btar-News Stall Wril.er Sen. George McGovern charged yesterday that the Nixon administration "com- manded the Jtistice Depart- ment to whitewash" the Wa- tergate bugging case. The Democratic presidential candidate said the indictment Friday of two former White House aides?the former Nix- on campaign security chief and four others?is "an insult to the intelligence of the American people." In a hastily called press con- ference on the front porch of his home here, McGovern con- tended the three-month Justice Department investigation into the break-in of Democratic headquarters left some "stag- gering questions" unanswered. Socks Campaign issue McGovern has been attempt- ing to make the Watergate case a major campaign issue, arguing that electronic eaves- dropping of his party's head- quarters "goes right to the heart of the morality of, the nation." Among the questions unan- swered by the return of the indictments, McGovern said, was who ordered ancl paid for "this act of political espionage and - who received the stolen information?" ? He said that "at all stages of the investigation, it remained a political case under the total direction and control of Mr. Nixon's political operatives, working through Atty. Gen. Richard Kleindienst." He renewed a call for Nixon to appoint a special prosecutor for the case. . Denial From Justice ? The Justice Department de- nied McGovern's allegations, saying it had conducted a thor- ough investigation of the case including financial 'aspects. Earlier a department spokes- man had said finances were being looked into by another division of Justice. "All aspects of the break-in and bugging were studied in detai I, including questions about the source and distribu- tion of any funds relating to the incident," said Asst. Atty. G-en. Henry C. Petersen, chief of the criminal division. "This investigatian has been conducted under my supervi- sion," Petersen said. "In no instance has there been any limitation of any kind by any- one on the conduct of this in- vestigation." Indicted. Friday by a federal grand jury here were E. How- ard Hunt, a former $100-a-day White House consultant; G. Gordon Liddy, who quit as counsel to the Nixon finance : c 0111 ni i t t e- e last summer; James McCord, former CIA operative who was Nixon cam- paign security chief at the time of the break-in. Vote, ens of Invasion Also indicted were four men arrested inside the Watergate with McCord that night: Ber- nard Barker, a participant in the abortive Bay of Pigs inva- sion of Cuba a decade ago, and three Miami men also active in the anti-Castro movement., Frank Sturgis, Virgilio Gonza- lez and Eugenio Martinez. Liddy and Hunt are expect- -ed to surrender to federal au- thorities here Tuesday. The following day, U.S. Dis- trict Judge Charles Richey will probably rule on whether a related "invasion of priva- cy" civil damage suit, filed by the Democrats, should be con- tinued. Henry Rothblatt, attor- ney for Barker and the three other Miamians, has moved to dismiss the suit. In his press conference, McGovern made it clear he does not intend to dismiss the bugging incident as just the work of minor party function- aries acting on their own. Democrats have decided to focus on a still unanswered question: Who decided that $>1.14,000 in campaign contribu- tions should be given to Bar- ker. Hints of Finances :The only hint in the indict- ments of financing is a nota- tion that Liddy gave McCord in cash in mid-June at a ineeting with Hunt. About a month earlier McCord alleged- ly paid $3,500 for a receiving levice. McGovern argued! "The ad- ministration, with its total Dontrol of the grand jury, asks ns to ignore the diversion of Approved ForReleates2001iO3 ? !uncls into the hands of It! ?olitical espionage squad." UI STATI NTL CIA-RDP80-01601R000200190001-2 J.J.J.JJ1 IV f1,01/.1-J1 S.4 J- 15 Sept 1972 STATINTL Approved For Release 2001/03/04TWORID04801194A1R401114014400(4.12 the ? 1ak-in. .t.g A 77a.3i,st: A 17171 President Nixon's business Dre Ii44 11 Li partner and personal friend, Despite his involvement in the much publicized IIMPirje'r11.1Thlt Cuban "Bebe Rebozo is im- burglary, bugging and wiretapping of the Demo- plicated ? in the Watergate cratic National Committee headquarters, White caper, according to Cuban exile sources. Report- House Special Counsel to the President, Charles STATINTL edly the Democratic organization had a damaging W. ("Chuck") Colson, is still held in high esteem investigation file on the Nixon-Rebozo business by President Nixon; he accompanies Nixon on his partnership; also, the Democrats have acquired frequent trips as an adviser, along with Henry new evidence on the ITT scandal and inside in- A. Kissinger. formation on the Nixon-Mitchell law firm?am- The justice Department, which is supposedly munition that Democratic strategists intended to prosecuting five men in connection with the drop as bombshell in the campaign. This was the alleged electronic bugging incident at the Demo- urgency that prompted James W. McCord. Jr., cratie headquarters in the Watergate Building chief security coordinator of both the Republican assigned a lawyer from its Civil Division to defend National. Committee and the Committee to Re- "Chuck" Colson in a civil suit stemming out of the elect the President, to personally participate in. case. Government attorney Irwin. Goldhloom was the Watergate burglary? he did not trust his assigned by Attorney General Richard G. Klein- Cuban cohorts to steal such highly incriminating dienst to represent Colson and Alfred Wong, a documents?they might be tempted to peddle their special agent of the U.S. Secret Service, who had wares to the highest bidder. recommended James W. McCord, former CIA of- Friends of McCord say that there was a double- ficial, to the position of security chief of the Com- cross, at the White House level. Two Democrat mittee for the Re-Election of the President. stool pigeons were planted on the staff of the (McCord was one of the five men arrested in the CoMmittee to Re-elect the President, but enemies Watergate break-in). Ironically, a Federal judge of "Chuck" Colson in the White House were the appointed by Nixon, Charles R. Richey, ruled that real culprits who put the finger on the Watergate the Justice Department attorney, Goldbloom, operation according to persons now under inten- could not represent Colson since the latter was sive 'investigation in connection with the caper. obviously implicated in the Watergate caper. . Frank. Fiorini, alias Frank Sturgis, who was one While he was forced by law to make this ad- of the five arrested at the Watergate, was for 20 verse ruling against the Nixon Administration, years a confidential informant of columnist jack Judge Richey did so with misgivings, and is doing 4 Anderson. He kept Anderson advised on the ac- the best he can to protect Richard Nixon. He has tivities of the. several rival Cuban exile groups. taken the unusual step of sealing the transcriptions Thus far Anderson has been strangely quiet about of the depositions in the civil action instituted by the Watergate incident. Larry O'Brien, former Democratic National Com- As of now it appears that the Nixon Administra_ mittee Chairman, until after the election in No- , / tion is going to make E. Howard Hunt, Jr., and vember. He is also stalling the current grand jury G. Gordon Liddy scapegoats in the case. Liddy, proceedings relative to the Watergate incident. a former FBI. agent, who was working as financial A former high CIA official, Torn Braden, who counsel for the Finance Committee to Re-elect now writes a syndicated newspaper column, says: the President, was fired by former Attorney Gen- "Mr. Colson is Mr. Nixon's man of the sword; that is to say he has replaced Murray Chotiner as Mr. Nixon's principal exponent of dirty tricks. It is worth noting that at the very moment when Colson was being mentioned in the press in con- nection with the wiretapping incident at the Democratic National Committee, he was also being mentioned in the press as one of those who traveled back. to Washington with the President ? on the trip home from San Clemente. "Whether the President chose to have Colson ? STATINTL with him because he likes his company or whether he decided that it might cast more suspicion upon Colson if Colson were suddenly dropped from Approved For Release 2001/03/04 th residential entouraae is a restion which .1-4FiTtQrMAIRANZAQ $00011 far bet that Colson is slated for the boondocks sooner d continue STATI NTL ApppipffigUKRRINse 2001/03/04: CIA-RDP80- SUN-BULLETIN SEP 13 1972' - 28,638 Bugs and charges We can't recall a presidential cam- paign where there was so much fighting between the political parties' staffs, rather than between the candidates. And the exchanges between the party functionaries are getting more and more sordid and silly. It started with the Watergate caper. It seems fairly clear now that soine Re- publican zealot or zealots commis- sioned the bugging of. the Democratic - headquarters in Washington. It's hard to believe the Democrats had secrets worth such measures, but it's in the na- ture of zealous activists, especially if __CIA:trained, to enjoy their James Bond ; worfil-66thuch to question it. The Democrats have filed a civil suit against the Republicans, asking up- wards of a million dollars in damages,' and incidentally tying in one of the big- . ger figures in the Nixon campaign, for- mer Commerce Secretary Maurice Stans, to the bugging incident, and also ? to charges of misconduct with cam- paign funds. The Grand Old Party has struck back with a countersuit. Mean- time, the Democrats report finding still more bugs in their office phones, and have turned them o'er to the FBI. Perhaps the climax of silliness was reached Wednesday when Republican National Chairman .Robert Dole ac- ' cused the General Accounting drivide, which is a congressional agency, of showing partiality to the Democrats who dominate Congress. And how did it do that? Why, by "leaking" its findings on his, Dole's, charges of fund viola- ' tions by the McGovern People. And what were those findings? Why, that the 14 allegations trumpeted forth by Senator Dole included only minor viola- tions of the campaign fund law. George McGovern is. right. We should get back to discussing issues. R.0 001-2 Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 DAILY WORLD -3 Approved For Release 2001/031034s:E91DP8g61T80111140 , Isnr.,....,at,m-twn-rwm arm* e. fi 'Oj C1::4 Li t! ? f4. no - Newsweek. in its current issue reports that the group of five men -- four former CIA.agents and a counterrevolutionary Cuban---who were arrested at gunpoint in the headquarters of the Democratic party in the early hours of June 17 with bugging equipment in their possession, were part of a "political intelligence" team formed in the basement of the White House in the summer of 1971. The report by Newsweek Washington correspondents Nicholas llorrock and Evert Clark discloses that the secret group was formed at the. request of a top Nixon assistant, John D. 1-.!;hrlichman. According to .Newsweek, its purpose was to spy on-White House personnel for signs of disloyalty, plug leaks to the press and similar "dirty work." For pur- poses of the election campaign, the group applied its CIA know-how to spying on the Democrats. The New York Times Tuesday published an interview with Bernard I,. Barker, one of the five men arrested at the Watergate hotel, in which he admitted his participation but refused to name others or to disclose the reasons for the break-in. Barker said he and his associates consider , that the election of George McGovern would r'nlect the beginning of a ; trend that would lead "to socialism or communism, or whatever you. want to call it." Barker is a registered Republican in Florida. One of the main reasons given for his action is his agreement with Nixon's ultra-rightist policies, including continuation and escalation of the war in Indochina and opposition to socialism in Cuba. Although the interview does not ? make clear what role Barker played in the Bay of Pigs invasion of Cuba, lie is known to have been a CIA agent in that plot. Barker told the Times that he joined the Cuban National Police before the revolution "with the full consent and cooperation of the FBI." It was through Barker's bank account and through his hands that $10,000 in funds contributed t.o the Committee to Re-elect the President passed after at least. $89,000 had been "laundered" to hide its source by being passed througha Mexican go-between. In other developments, lawyers for the DeMocrats charged that Maurice Stalls, who resigned his post as Secretary of Commerce to .work on the campaign to reelect Nixon, paid a "political espionage squad" to spy oh leading Democrats and increased the sum demanded as damages from $1 million to $3.2 million. They also charged that other bugging attempts were made, including telephone tapping, with tran? scripts of converation,s passed to the Republicans. Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 / IVASHINGTON POST Approved For Release 2001/03?04EPCIAZ-RITAW1160 777 v a8e-r put 01 0 Ti e".1) 11-11 inq'T.7 it 69)-q .04117UL By Jim Mann and Bob Woodward WashincJon Poi.t, Staff Writers It was exactly il weeks ago today that the story burst across the. front pages for the first time: five men arrested in the early morn- ing hours inside the offices of the Democratic National ? Committee at the 'Watergate Wearing rubber surgical gloves. Carrying burglary ' News Analysis ? gem', electronic eavesdrop- ping equipment, cameras for photographing documents, . walkie-talkies, and consecu- tively numbered 000 bills, :Included among the live, was the chief security consultant to the Committee for the ? Re-eleetion of the President. The investigation of the break-in. took A curious path, leading from Washington to , Miami td Mexico to Minne- sota and elsewhere', involv- ing everything from foreign bank accounts and hidden j- fund stashes to the Bay of Pigs invasion and the CIA. Somewhere along the line, it became known as the "Watergate Caper"--a major issue in the 1972 pres- idential campaign. Yet after all the disclo- sures, publicity and furor of the past 11 weeks, almost all ? the principal questions raised by the incident re- main unanSwered: 0 What were those five men doing inside the Water- gate? What was the Purpose of Allegedly bugging and collecting information on the Democrats? And were they attempting to remove, not plant, a bug? ? 0 What was the extent of involvement of officials of. the Nixon re-election cam- paign or of the Nixon ad- ministration? 0 What effect will it all ker. in the have on the presidential the break-in. campaign this fall? . Hunt, by most accounts, was a friend and consultant to White House. .sPecial counsel Charles W. Colson and ? was brought to the White House on Colson's recommendation, Shortly after Hunt's name was linked to the case, he disap- peared, and according to au- thorities, 150 FBI agents began a nationwide search for him. It ended when his Washington attorney told authorities- that Hunt would agree to return :and answer questions. Adding to the intrigue was a tidbit of the kind that began to' come ott,(; every few days in the ensuing weeks: hunt, according to others in the White Ilouse, had spent months _quietly doing re- search' on Sen. Edward M. Kennedy (D-Maas.) and his 1960 Chappaquiddiek auto- mobile! accident: Yet another link to the campaign was pro- vided by late July, when it was revealed that G. Gordon. months before L Purgose and Seqpc Ever since the break-in, a I) umber of theories have been advanced regarding its purpose. First, there was what might be called the "Cuban refugee" theory, which as- sumed that the men ar- rested inside the Watergate were members of a fringe Cuban group -perhaps wor- ried that the Democrats inight be seeking friendlier relations with Cuban Pre- mier Fidel Castro. Among those advancing this idea in the days after the break-in was at least one staff mem- ber at the White House. The Cuban theory. is based primarily on the fact that four of the five men ar- rested June l.7-.?Bernard Barker, Frank Sturgis, En- -genie) Martinez and Virgin() Gonzales?lived in 31-liami and were either Cubans or had extensive contacts with Cuban ekiles there. Arguing Against the Cuban theory has been the accumulation of evidence that members of President Nixon's own campaign staff, the Committee for the Re- election of the President (CRP), were -involved in the break-in. The man providing the in- itial chic to Republican in- volvement was the fifth per, son arrested in the break-in, James W. McCord Jr., a re- tired CIA employee who was the chief of security for the Nixon campaign. ? On the day after the ar- rests, John N, Mitchell, then the Nixon campaign chair- man, sought to disassociate the campaign staff from Mc- Cord, saying, "He (McCord) has, as we understand it, a number of business. clients. and interests, and we have - no knowledge of these rela- tionships." The next clue was the dis- covery, two days after the break-in, that another for- men CIA ernployee, E. How- ard Hunt Jr:, who had been a $100-a-day White House consultant, was listed in ad- dress books taken from two of the five arrested men. .Next to Hunt's name in the address books were the no- tations "W.House" and "W.H." It was later deter- How thoroughly an.d nun' ed.' that Hnut haL had Another link between the honestly alAPPrONOCLP 0 Extf ffiecagataLlIaligaiDtRaetAtiRlDpligie -046M 'lions being conducted? Liddy was firan by mac:Ian June 28 for refusing to an- swer IFBI questions about the Watergate incident. (Mitchell himself resigned two clays ? later, ?? asserting that he wanted to. accede to Ins- wife's wishes and return to private life.) ? Liddy, a one-time White. House aide, was the chief adviser to the Nixon cam- paign staff on the new con- gressional statute requiring stricter reporting of cam- paign contributions. In the eyes of some people on the campaign staff Thud others close to the investigation of the Watergate ? incident, Liddy was probably the; sec- ond-ranking policy-maker in the Nixon fund-raising ef- fort, next to. finance .chair- man Maurice Stmts. Telephone records of the Miami home and office of Barker (one of the five ar- ested men) revealed that Barker had placed at least 15 long-distance calls to the Nixon campaign offices be- tween 'March 15 and June 16, most of them to Liddy's extension there. The records also showed that Barker had made 29 long-distance calls to Hunt's home and offices from Nov. 3.9 to June 16. 7X011 re-election smnit was provided Aug. 1 when it was reported that a $25,000 check representing funds raised for the Nixon cam- paign was deposited in April in )3arker's bank account. It was this revelation, six? weeks after the incident it- self, that seemed to give the Watergate caper ? a new, more important twist. The Democrats, trying to recu- perate from the Eagleton af- fair, began to seize on it daily. The check represented a . contribution from Dwayne . Andreas, a Minnesota inves- tor, who reportedly gave the $25,000 in cash to I?fenneth IT. Dahlberg, the President's chief fund-raiser in the Mid- west. Dahlberg said that he used the cash to obtain a cashier'S check made out to himself from a Florida bank, and that he personally handed that check to Maur- dee Stalls, the finance chair- man for the Nixon cam- paign. Stans later said that he ? held the ? check for a few minutes and then turned it over to Nixon campaign treasurer Hugh W. Sloan who in turn gave it to Liddy. No one has explained the exact details of how the money ended up in Barker's bank account, or how much of it Barker actually kept. . Sloan resigned from the Nixon campaign staff over the summer, ? It later developed that an- other $89,000, also deposited in .Barker's bank account, represented contributions to the Nixon campaign that were raised in. the South- west and ? were moved through a Mexico City bank to insure that the donors - would remain anonymous. According to investigators, this money, like the other $25,000, passed through the Washington office of the Nixon re-election committee. All of these links smuggest strongly that the alleged bugging may have been con- cocted not by some Cuban ? exile group,. but by at least some individuals connected with the Nixon campaign staff and the White House (such as Liddy, Hunt and . McCord). A fewdays ago, in . fact, a source close to the in- vestigation reported that Liddy and Hunt were ac- Ktiot)66iblOolitlat? STATI NTL Continued DAILY WORLD Approved For Release 2001/0i/96: 174-RDP80-01601R0 ? 11 Fri (77-) .11,1 Special to the Daily World . SAN FRANCISCO, Sept. 1 ? Dwayne Andreas, .the Midwest "Soy Bean King," with wa linked to the June 17 aborted burglary of Democratic headquarters, is a ldng-time financial angel of Sen. Hubert Humphrey (D-Minn) and a backer of anti-communist . STATINTL Operations. These facts, either buried .or completely ignored in press ac- cOunts? of the break-in, are devel- oped in an exclusive -story in the . Sept. 2 issue of the ' People's World, workingelass weekly pub- lished here. ?. A.ndrcas tried to keep secret a $25,04 contribution to the Nixon ? re-election fund but the story leaked out after money.in the pos- session of one of the arrested burglars, Bernard L. Barker; a Miami real, estate dealer,' was traced to (lie Andreas gift. Hitherto, Andreas had been a Humphrey sugar daddy, aiditig? The Minnesota senator and many of his political associates through ? the Andreas Foundation. -Thei how come the shift by Ahdreas to the Nixon crOwd? What follows is from the People's World account: . Got bank charter ? fast The hint carried by the Assoc- iated Press- Aug. 27 concerned a much coveted federal, bank char- ter speedily given to Andreas two weeks ago for his Hidgcdale National Bank in the Minnetonka shopping center near Minneap- olis. However, not mentioned in any. of the wire service reports at the time of this writing are the following interesting .dealings between Andreas and the Nikon Administration: ? 0 Last year when a. banking operation Andreas heads sought to. forin a new giant financial conglomerate in Minnesota it was found they could not do so without violating amendments passed in ? 1970 to the Bank holding Act. The companies involved. sought and. got. federal approval for an intricate juggling and hand changing of millions of dollars in order to comply with the law. A company Andreas heads has a suit pending against it, filed by the Justice .Dept. charging violations of the Sherman: Anti- Trust Act. 0 The man who received Anreas' $25,000 contribution and passed it on to the Republicans is , a director of the Andreas bank which is involved in both of the ''above dealings. Pending anti-trust suit' Andreas is the president. of the ? Archer-Daniels-Midland Co., the largest domestic soybean proces- sor. In September, 1971, the Justice Dept.. filed a civil anti- trust suit against the company charging its 1970 acquisition of 'two soybean companies, one in Nebraska and one in Kansas, .violates the Sherman Anti- Trust Act. The suit is still pending Taking over the two companies meant that. Archer-Daniels- Midland could control two-thirds of the Kansas soybean crop and over 90 percent of the beans _grovin and pro?cessed in .Nebraska. On Oct. 1, 1971, plans .were 'announced for formation of the 'Independent Bancorporation, a holding company. It was env's- ioned ? as joining as many as 10 Minnesota banks and 35 other poration when it wa' s formed was the First Interoceanic? Corp., of which Andreas is chairman.. 'First Interoceanic, in turn, controls 84 percent of the National City .Bank of Minneapolis 'where Andreas and his brother, .Lowell Willard Andreas, ? are. directors. ? First Interoceanic is a wholly owned subsidiary of, Archer- Daniels-Midland, Subtle shuffle ? Money dealings at that level of the capitalist pyramid are pretty complicated, but . simply stated the arrangement Was in violation of the law. So, with government approval, the Andreas-Archer- Daniels-Midland Co. had to divest itself of its banking' interests. This was done by distributing the Independent Bancorporation shar- es to' individual Archer-Daniels- Midland shareholders'. On June 14, 1972 the Internal Revenue Service ruled. .the above maneuvers were all right and the Company had complied with the Kenneth H., Dahlberg, chairman of the Minnesota Committee to Re-elect President Nixon,' told the General Accounting Office that Andreas had called him June?5 and offered the contribution.' That. would plaice it two days before new laws went into effect which would have 'made it impossible for Andreas to contribute anony- mously. Dahlberg said he picked up the money on June 9, as ar- ranged, from a third party in a Miami hotel: ? The' news reports so far have not mentioned the fact that Dahlberg is a director of Andreas' National City Bank. Andreas is known to have 'only ? recently become the president of the Sea View Hotel Corp. in the Miami Reach-Bal Harbour area. Approved For Release 160014103/04hp GIA-RDP40-0101itCY0t1269111.p130014 'Lary of the Independence Rancor- the money oun s waN continued DAILY WORLD Approved For Release 2001/0AWdRaRDP80-01601R00020 At444 TEEM. tmg.' Who rri U50 115 'bow& ?red' ? WASHINGTON ? President Nixon and the White House staff are "bewildered" and "bemused," according to Robert H. Finch, counsel-, or to Nixon, by what some people call the "Watergate caper" but which has turned out to be more of a conspiracy. The comment was typical of the many attempts by the White House to downgrade an amaz- ing scandal which leads right to the Committee to Re-elect the Presi- dent and the White house itself. Since one aspect of the scandal is an alleged misuse of $350,000 of re-election funds, the Republicans have tried to take the heat off them by 'claiming that the Democrats have also violated ths new election law. But much more than this aspect is involved; the issues go deep into . the rightwing and ultraright character of the Administration, its per- sonnel and policies. The latest disclosures reveal that the june 17 break-in .at national Democratic party headquarters by persons connected with the White House and the Committee to Re-elect the President was not the first attempt. The Miami Herald reported Friday that, seven days before the Watergate break-in, a commercial photographer processed spy films takettinside the Democratic party headquarters. The film.was of prjvato correspondence of Lawrence O'Brien, then Democratic party national' chairnian, and was ordered processed by Bernard L. Barker, a former CIA agent who was arrested with four other men on June 17 at the headquarters. Barker is the man who deposited $114,000 into his account from funds diverted from the campaign funds collected by the Committee to Re-elect the President. The Washington Post reported Priday additional information ? that' G.. Gordon Liddy and E. Howard Hunt Jr. were also inside the Watergate Hotel on June 17 and narrowly escaped arrest when police arrived. Liddy and Hunt were warned by lookouts in the Howard John- son Motel across the street, where a listening post was maintained by the conspirators. Liddy and Hunt both worked for the White House .and Liddy, a former FBI agent, was employed at the time, of the ar- rests by Nixon's re-election, committee. John N. Mitchell, former U.S. Attorney General and Nixon's ? campaign manager, made a deposition Friday in the case, saying that he had "no advance knowledge" of the break-in; bugging and "no knowledge" about how the $114,000 wound up in Barker's hank account. ST-ATI NTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 STATINTL Approved For Release 2001/03/04: CIA-RDP80-016 ? LOS -ANGnES TIMES 3-1 Alin 1972 ro ? , ;1 17.) r P 11 ',;( kt,3-M. SpcYs M 7" r"" tr-,t: BY RONALD J. OSTROW and ROBERT L. JACKSON Times SIMI Writers . 'WASHING-TON?G. 'Gordon Lid- ?1 Liddy,'.'whO-lhaS :refused dy, a suspect in the . Democratic 'all coMment in the past on headquarters bugging case, pro- , ? the breakdn could not be? posed during the 1971 Pentagon 17a-. d We dnesday nic,ht.- pers incident that the justice Be- . reache - - , ? - - - ? L' ? - partment bug the offices of the New ,,Ip another. development-, York Times, an 'informed source said ,..c.t.ing" FBI director L. Pa- Wednesday. trick: Gary -.lit rejected ? ., Liddy made the proposal last sum- ?stiggeStienSil$'''Democrats "mer when he was serving as the that- &??--wilite House White House coordinator for an in- teragency group set up by the' Ad- would try to influence the ? ministration to investigate leaks of justice Department's in- government information. vestigation of the Demo- - Liddy was said to have approached cratic headquarters ?bug-. 'Justice Department attorneys with the proposal, calling it "a great idea" - gi?ng case. . to discover who gave the secret doe- H would be impossible, ? uments to the newspaper.. he. said in an interview, for ' 'When the attorneys ascertained - the White. House to con- thit Liddy was serious, the in-' t-r o I ? t h e investigation, formed source ? said, ' they stopped ' even/if it-wanted to; dealing with him. They did not men- , tion his suggestion to Robert C. Mar- .- Too Many In volved , ? dian, then head of the justice_ De- Gray said too many Jus, partment's internal secttrity division flee Department attorneys - , and now an official of the Commit- and FBI agents were in- tee to Reelect President Nixon.? i 'But when ,the bug volvedn the investigation ging of the for any attempt ? at in- Democratic headquarters took place, fluence to escape public ' one of the Justice Department attor- attention. , ? neys learned, that' Liddy was ? work- . If this were being done, lug at the Nixon comniittee and told y - oIt. would have to control' .Mardian of the Pentagon Paper in-. . cident. Mardian informed others at too many people," Gray. said. Be added that he had the commit:tee, and the FBI was ad- vised. ? received no instructions ? ' . Mardian declined to comment on froM anyone" on the polit- ically sensitive case. ' the incident Wednesday. TWeenn. mittee Jired Liddy as its financial Lawrence F. O'Brien, campaign manager f o r ccrunsel jUne 28 after. he refused to S - ? ?. answer FBI 'queStions. He later re- en. George S. McGovern, have ' . fused to answer question before the and other Democrats. federal grand jury investigating the Called for appoint:Mat Of . case . an outside prosecutor,. to.. insure, they .,Said, that the- ?. . . The General Accounting Office ?, said in a report Saturday that Liddy White House exerted no. ,- . had a ,hand in f loan c i al trans:, influence. ? on the probe; President, Nixon. Tuesday ? actions ,in which checks totaling. rejetted, .this - suggestion, rc$11.4,00.0 in GOP catnpaii.D pledging there wOuld be . ?dse-wound up' .in the ? ,bank account ? of? -Bernand X.,..13a*er. ? . ? :?;Barkei',..a.e.Miami re-al es- tatete broker, was arrested im the ',Tithe 17 'break-in at . lhelkopeitikroevr,OittFteieas44011e#H); 1 MI .4.1E,ttlqu4rers.' ?.? assassination.. of 'President: 1 ? ' no cove rup: ? ? Tells of Leads ? ,Gray, supporting --Atty. ! Gen. Richard- ?G, Klein, 1 dienst's statement Monday ! that the probe of the Dem- ocratic bugging attempt John F. Kennedy, said the 1 FBI had -?, received ? "in- .1 nurnerahle 'leads that af- feet- (FBI) field 'offices:a throughout the nation." Cities where agents are , pqrauing leads, Gray said, Include Los Angeles, Min- r p o 1 i's, Chicago, St. Louis and Mexico City, as well as Washington and ?1 Gray said he had ordered ? special agents in charge of FI31 field offices in these - cities, and others to as- sume personal responsibil- itY for inquiries in the bugging case. ?"The office of the Pres- idency is at stake," Gray said. "The FBI's .credibili- ty is at stake." :Asked ? if he had taken action to assure agents that- there was no political pressure, in the case. Gray questioned. wbether he eptild go beyond the steps h6: had already taken. "1 Unusual Meeting. :These included classi- ? fying the investigation as 'major" and an unusual Meeting in Grays office of ? Washington field agents on June 21, a week after the bugging attempt. ? 'At the Saturday ' meet- log, Gray cautioned agents about leaks in the investi- gation that he said could. only have come from the ? FBI, and stressed that the case was to receive No. 1. priority. ? ? ;ln 'another development Wednesday, records of the Committee to Reelect ? President Nixon showed that FBI agents had pro-.. vided security for ? Martha Mitchell for up to two Weeks, after her husband,. Amer Atty. Gen. John N. ? Mitchell, left- government ? Service. The records dis- ? closed that the committee ? reiinbursed two agents for $243 in personal' expenses, behalf of the til April 9: ln?Ahe interim, incurred on Called ,IMproner !;Gray, informed of this situation ..by -The Times, said: "Of ,.course it was im- ? proper. -We're not in a good position," He said he assumed the Service was arranged for ?the Mitchells by his prede- cessor, the late' J. Edgar Hoover, until the, commit:, ? tee -could,-arrange- for pri- vate security. The FBI 'began provid- aing ti3e MitcheilS with :protection in 1969 after. threats had been made 'against them. Such protec- , , lion for high government . officials.isenot unusual. 'The FBI men reim- bursed by the Nixon come? mittee were two Washing- - ton-based agents?Francis M. Jr., -now ,with - the Burcau.'s ;inspect-ion - staff. a-and ? ',Fred_? Wood-, worth.- -Neither agent ' .Would :comniente' - But Gray incl DeVan L. Shumway, spokesman for the Nixon Committee, con- firmed the details. Mullen- : was .paid .$107.71. ?on JClv 19 for Meals and other ex- .-Tenses? -he incurred,' for Mrs. Mitchell on a trip to Ntilw.aukee from March 13 to 17. Woodworth drew $135.35 on July 26 for ex- penses he incurred on be- half of both Mitchells on a Feb. 24-23 trip to New York, a Feb. 29-March 6 - trip to Key Biscayne and another ?New York trip March 10-12., Gray said that before Mitchell left the Justice Department his practice had been to personally reimburse the agents for expenses they incurred on his and his wife's be- half. Mitchell resigned as at- torney general effective .March '1, but did not join the Nixon committee un- _ DP8041,604R000200190?-ge``: t" jaw firm -I 'I ? FBI was not reimbursed 001I he once was a for their sa at es. ,partner With Mr. Nixon, ? STATINTL . . Approved For Release 20011/031cleMA-RDP80-01601R000 29 AUG 197? 9 Inn':71721f,N22M7:7=1"alasSZ.Z.7.M.1.211 lY L aC: tainted traii ? . . In his acceptance speech last week. President Nixon avowed his belief in the doctrine that "here in America a person should get what he w.orks for.- , That is undoubtedly why the public is having such difficulty in learning the sources of the special $350.000 bundle contributed to the Republican campaign. commit- tee.. why it was not'recorded as the law requires. or what part of the $350,000 was devoted to the, effort to "hug" the Democratic national headquarters. This is the second case in which the \Vhite House's hatchet men on the home front are simultaneously cut- . throats in its imperialist aggression. ? The other was the White House complicity with International Telephone and Telegraph , Company, That included ITT's bid of $400.000 to the Republican national convention.: the attempt to overthrow, with CIA help, the / Allende government of Chile: and the Justice Depart- ment's approval of ITT's acquisition of the $2-billion. Hart- ford Fire Insurance Company. Unable to concoct a credible tale. the White House has taken refuge in the age-old brigand cry: "Stop Thief ! - Maurice Stans. former Secretary of Commerce and now finance chairman of Nixon's campaign committee de- mands that the General Accounting Off ice_of CQI1greSS quit "pursuing the dirty $350,000 trail, and pursue. instead, his ?aljegations of corruption among the Democrats. The possibility of . such a switchover is not to be dis- missed. for.GAO has turned over the pursuit of the scum- my trail to the Justice Department ? the outfit whose past. and. present ?, chiefs. John Mitchell and Richard Klein- dienst. have been up to their elbows in the Administra- tion's dirtiest dirty work. ? - The vision of the Justice Department investigating the Republican National Committee's source and use of funds compels one to ask. with the bard. "which is the justice. which is the thief?" Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001- TIME ' 28 AUG 1972 ? Approved For Release. 200110r3i0AsacCIAIREIRRA16%1ROMPOP991 2 t-ame were depoSited ' :campaign. The Democrats have been in Barker's Miami account. The Watergate Issue moving methodically. As O'Brien puts As it turns out, one of Ogarrio's it: "This is an unprecedented case of p6- 'principal clients is the Gulf Resources & It began as an odd, Bondian episode litical espionage. We have been very, Chemical Corp. of Houston, Texas. The greeted with amused stupefaction in very careful in every step we've made." ? firm's president, Robert H. Allen, also Washington. Now the Watergate affair Care is the last thing the Republi- happens to be chairman of the Texas promises to be the scandal of the year. cans exercised. The great embarrass- finance committee to re-elect Nixon :Justice Department officials found that ment began the night of June 17, when Further, Nixon's re-election campai6. the ' receiving end ?of bugs planted in police arrested the five inen,as they tried in Texas is supervised by Robert Mar- the Democratic National Committee's to remove bugging devices from the dian of the C.R,P. headquarters was located just across the Democratic headquarters. As the cops The Democrats are suspecting the street in two rooms in the Howard John- moved in, Justice Department officials best. They theorize that the Republicans son's motel. There members of the se- have learned, the recording equipment might have fantasized a convention pro- curity intelligence squad of the Corn- in the Howard Johnson's motel was be- posal that a new Democratic adminis- mittee for the Re-Election of the. ing hurriedly removed. One of the men /tration open dialogues. with Fidel Cas- President were clearing out their rec- arrested was James W. McCord Jr. tro, thus leaving itself open to attack in ords and tapes minutes after the cops ar- chief security coordinator for the Com- Miami Beach last month by anti-Castro rested the Wate.rgate Five, rnittee for the Re-Election of the Pres- Cubans. Although the Democrats There Were other iridescent traces ident. The eavesdroppers across the grudgingly trusted Kleindienst On secti- leading to the C.R.P.: a possibility that street had apparently been assigned rity measures, O'Brien and others were. the Watergate forces. planned to plant their tasks by McCord. only too aware that he was Nixon's man. incendiary bombs in the hall during the The intelligence squad grew out of Still, the man they really want?because Democratic Convention, or conspired he is so closely tied with the Ad ministra-. to have the hall stormed by paid Cuban . tion?is former Attorney General John exile mereenaries. The Administrtition N. Mitchell. As Nixon's campaign man maintained 'silence, ?although Attorney.ager, 1Slitchell dismissed Liddy from the General Richard Kleindienst did yen- .C.R.P. after Liddy had refused to an- . titre that the bugging was "just about the swer FBI questions about the Watergate stupidest goddam thing I ever heard of bugging. Mitchell resigned from his post ?The incident has given the Demo- ? two days later, ostensibly at his Wife ? crats ammunition they could not Martha's insistence. But Democrats ? think that Mitchell was trying to extri- cate himself from Watergate. before the situation blew up. By corning down hard on Mitchell, the Democrats hope they ? can make Watergate a devastating ?and durable?campaign issue.. FORMER ATTORNEY GENERAL MITCHELL a' team of so-called "plumbers," origi- nally?recruited by the Administration to STATINTL investigate leaks to the media. They in- eluded G. Gordon Liddy, a former White House.staffer and then attorney for the, C.R.P.'s finance committee; ? Robert ardian, a former assistant U.S. Attorney-General and an official for the, C.R.P., andT.(Howard Hunt, a former ,1 White Rouse consultant. The lead man have imagined for themselves. Larry in the Watergate caper 'was Bernard O'Brien, the Democratic National Barker, an ex-CIA agent. Feleral inves- Chairman afthe time five men were ar- tigators learned that $114,000 from the rested for possession of bugging devices C.R.P. had found its Way into Barker's at his Watergate headquarters, last Miami bank account. ? week .refiled his $1,000,000 suit far vi- Early on the Justice Department ()Won of ciVil, rights in Washington's discovered that $25,000 Of that money federal district court. His attorney, Ed- had been collected by Kenneth H. Dahl- ward Bennett,Williams, a crack crimi- berg, the. Republican finance chairman nal lawyer who is working on the -case in the Midwest, who told the FBI that he without pay, has asked for subpoenas had rounded up the cash from G.O.P. requiring the principals named in the - contributors early in April. -The other case to submit to questioning under oath $89,000 apparently came through a this week. The aim is to preoccupy the Mexico City attorney, Manuel Ogarrio tRoUcelkirr otheighato 0 vgvg, / vt!fisiloripaitimspirii girvi 7 tl rItrIrtdatIllig'ST9:000- R000200190001-2 WASHINGTON rubi 2 5 AUG 1972 Approved For Release 2001103/p4 : CgAAPTIAD-hp-cile By Jack . Anderson , The mysterious $25,000 that apparently helped finance the bugging incident at the Demo- cratic National. Headquarters has.now been traced to Hubert Humphreys biggest.. financial backer,* ? soybean oil; tycoon Dwayne Andreas. Andreas delivered the cash, according to secret sworn'tea- timony,_ to President Nixon's chief fund raiser in the Mid- west, Kenneth Dahlberg. Both men are Minneapolis ?million- aires. . ? ? ? FULI, Traced tt 111111 itadll? The next day Andreas with- walkie-talkie Anned to a spe- drew $25,000 in cash from the cial GOP security frequency. safety deposit box and gave it 'Dahlberg's sworn testimony, to Dahlberg, according to the identifying ? Andreas as the sworn testimony. Dahlberg, source of ' the $25,000, differs converted the money on April from his statement to federal 10 into a cashier's cheek auditors Who are investigating drawn on .the -First Bank and whether the new campaign Li- Trust Company of Boca Raton, wince law has been-violated. Fla. ? . He told them, according to He handed the check to an ' investigator, that he had Maurice Stalls, top fund raiser collected the $25,000 from van for the Nixon campaign, on ions sources before the cam- April 11 at a Republican meet- paign reporting law went into lug at the Washington Hilton effect. But under oath, in . Hotel. Afiami, he admitted the money. The $25,000 check later had been turned over to him turned up in the bank account by Andreas two days after the of. Bernard Barker, a former) deadline. CIA undercover man, who rcti In his opinion, he testified, cruited a Mission Impossible Andreas had no knowledge of team allegedly ? to bug the how his money was used. INC Democratic premises. Some of tried repeatedly to reach both them had been involved in the Andreas and Dahlberg but nei- Bay of Pigs fiasco with Bar- they returned our calls. / key, who is known to the CIA Stalls; whose sworn testi- by. the code name "Macho". many Iva& also taken in In the early morning hours Miami, claimed he passed the of June?17, five inen, including $25,000 cashier's check along Barker, were arrested at gun: to Hugh W. Sloan Jr., former point inside the Democratic campaign treasurer. Stans said office complex at the Water- he had no idea what Sloan did gate, Towers. They.were wear- with the check or hew it ing rubber surgical gloves and ended. up in Barker's bank ac- carrying electronic eavesdrop- count. . ping devices. ? Footnote: With only chief They were also caught with Investigator, Martin Dardis as- view Hotel. The hotel's safety $5,300 in crisp new $100 bills, a signed to the case, Gerstein is deposit box,.. however, .,- was couple of address books listing ahead of the FBI in tracking closed for thd night. a White 'House contact and a down some of the bizarre de- , - ---- - ? - The testimony ' 'was taken from Dahlberg in Miami by State's Attorney Richard Ger- stein, Who is investigating al- leged violations- of Florida laws in the .bizarre ease, Under oath, -Dahlberg .?also admitted that he didn't pick up the. cash from Andreas imtil April 9, two days after the new campaign ? reporting !law went into effect. The law ? requires ? a public accounting of political contributions, but the $25,000 . was never re- ported.- , ? . Dahlberg .,testified that he flew* into ? Miami on, April 8 and met Andreas in. his .pent- house at the fashionable ?Sea- ? tails of the Watergate caper. Not only FBI agents, but con- gressional investigators have come to Gerstein for informa- lion. 'Facing An Emergency' Money is pouring in for President Nixon's re-election . campaign, but Republican con- gressional_ fund-raisers are finding the going rough. The result is that the Repub.- lican Congressional Commit- tee is making its appeals .for . moneY. sound as desperate as , possible. Its latest appeal says GOP , congreSsmen are "facing an emergency. We are out of funds for incumbent Republi- can congressmen. They are begging for funds . . . The Radicals-Liberals are joining forces to -defeat them." To make sure that prospec- tive donors don't throw away the appeal without opening it, the GOP. has put it in a highly official-looking brown manila envelope. Instead of the Republican Congressional Committee, the envelope is marked With the return address of the ."U.S. House ? of Representatives." Thus it appears to be an offi- ? cial communication from the entire. House rather than just one party's .plea for cash. ? Approved For Release 2001/03/04 : dIA-RDP80-01601R000200190001-2 t-k t?. STATINTL. Approved For Release 20031. /LMSIES CIAgRDP80-01 22 ?AUG 1972 -mocjily" Eta- dronr,c Gear Prior Yor MC' %.9 Nixoni Committee Source Says Devices Were Acquired for 'Defensive' Purposes. tY RONALD J.? OSTROW AND ROBERT L. JACKSON Times?Staff Writers ? House consultant E. HOw- ard Bunt Jr., who dropped from public view immedi- ately after the case broke. It could not be learned w h e. ther 'these walkie- talkies were among items listed in sales records sub- poenaed by the grand jury. . Most of the electronic WASHINGTON ? The ? Comthittee for the .Reelec- tion of the President ? bought thousands 'of .dol- Jars worth of electronic se- curity equipthent' in the in Onths? preceding t h e aune bugging Of Demo- . cratie NationalHeadquar- ters, it Was learned Mon- day. ?? equipment .- suppliers who Sales records sub- dealt with the Nixon corn- poenaed by . the federal miteee refused to discuss grand jury investigating the nature of the commit- The incident; show the tee's purchases. items included ,w alki c- Robert E:. Slye, pros- talkies and noise detection ident of Concord ?COmmu- devices. . nications Systems of sub- A committee source said urban Arlington, Va., said :the devices, ? which Were of, the committee's April purchased from at least order of $1,113 worth of I rye- Washington area sup- equipment: ? -pliers April and May, "We don't diSclose that were "defensive." They kind of information about were designed to protect our customers." Republican offices against Slye said his firth sells bugging and' illegal entry, "'television and audio ? rec- not to engage in such acti- ording equipment as well vities, he said, as "entire ? security . sys- "None of the purchases tens." He would not say to my knowledge was for whether FBI agents had offensive equipment," said contacted him about the the .official, who declined to be identified. investigation. . , :Amongb suspects arrested ' Detects Noises in the June 17 break-in of . Some of the equipment the Democratic 'National - purchased by ._the' Nixon Cominittee off ices .was committee is :ted to de James NV. McCord Jr., tect noises after. a room then the ? Nixon commit- has been locked for ?the tee's security director.. ? night, but not to pick up conversation, one commit- tee source said. ? ? In another development, ? Robert C. Mardian, a for mer Justice ? Department - official now with the Nix- on- committee, denOunced - as a "baldlaced lie" a re- port, in Time magazine' linking him to, the bugging incident. . Fired June.28 Another committee offi- cial, G. Gordon Liddy, was fired June 28 as financial counsel for refusing to talk to FBI 'agents about the case. Along with bugging de: Vices, police 'seiced five walkieltalkies from those arrested in the Democratic Mardian Said in an iSTATINTL n- terview he had.no contact with any principal in the case 'prior .to the break-in, with the possible excep- tion of a ? discussion with McCord ?about hiring . a driver for the 'GOP 'com- mittee. . After the incident,.-Mar- dian said, he dikussed the bugging affair with Liddy.. But this ?.conversation, he said, was covered by the la w yer -? client privilege which ? prevents him from talking about It. The ma g a zine said . members ? of the Nixon' ? committee's Intelligene squad" had set up a listen- ing post in a Howard Johnson motel acrosS the street .from the Watergate apartment complex where the democratic comniittee office are located. ?- Declines. Photo Paul Chapman, the mo- t e s manager, declined Monday to examine a photo of Mardian offered by re- porters. Chapman also re- fused to say whether com- mittee officials ?had rented a .room the day of the break-in, but did confirm that he was questioned by FBI agents, Meanwhile, U.S. Dist. Judge 'Charles R. Richey, who is hearing a $1 million civil damage suit filed by Democratic officials against the Nixon commit- tee, ordered sealed from public examination all de- positions to be taken in the case. Richey noted earlier that a federal grand jury is pursuing a parallel crimin- al investigation. Edward Bennett ? Wil- liams, attorney for the .Democrat, said be would begin taking depositions Wednesday. .Among those to be questioned are for- mer Atty. Gen. John N. Mitchell, -who resigned as head of the Nixon commit- tee in late June; presiden- tial aide Charles W. Col- son, and fo r in c r Corn- mere Secretary Maurice. IL Stalls, the eommittee's iipance director.. a(egftecirklik reit( o f wse 2001/03/04: CIA-RDP80-01601R000200190001-2 found in the desk of White ApproverFUESTElleae 310A91f9m1 2 2 AUG 1972 T rrf 'As details of -the ? GAO's An ? o ic a 0 findings became known yester- Committee, meanwhile, con- TT/ io iations poSrttaef(fi sfanildnesdomthee.peGraskoOnsfiantdtinhgescaonind. 0 ; these additional developments rnittee were "deeply troubled" ? X' '40 rt related to the Watergate case: by the GAO information., O An examination of court The committee official said Ni ? . , papers reveals that a federal- .. that the Nixon committee will Fund Cited By Bob Woodward ? ? and Carl Bernstein Washington Post Staff Writers The General Accounting Of- fice has discovered violations in ? the handling of nearly i$500,000 of campaign contribu- tions and expenditures by ?President Nixon's re-election -committees, wording to sev- eral reliable sources. . ? ? Among the irregularities. 'found by GAO investigators is avhat they describe as $100,000 "campaign security _fund," from which $25,000 was deposited in. the bank account .of one of the 'suspects in the ;Watergate break-in, according to the sources. Violations cited by ? the Isources include failure to re- 'port receipts and expenditure of funds received by. the Com- mittee for the. Re-election of the President after April 7? the effective date of the new campaign finance disclosure law, under which the GAO is currently conducting an -audit. The $500,000 in question, ac- cording to the sources, repre- sents the following: about $200,000 in unreported contri- butions; another $200,000 in, unreported expenditures ?(some of which probably over- laps the unreported contribu- tions); :the $100,000 campaign security fund; some . errors, apparently technical in report- ing a $50,000 itemization; and ,an undisclosed amount?prob- ably small?of loose cash at the Nixon committee. Tcip Nixon committee of- ficials would not comment on the report of the. alleged vie- Jations in handling, the $500,- 900, DeVan L. Shumway, chief ? 'spokesman for the Nixon com- mittee, said in Miami yester- day. ? But Republican sources .said.. presecutor 'has told the attor- ney for G. Gordon Liddy (a former. White House, aide and former attorney for the Nixon re-election committee) that he feels a grand jury has enough evidence to return a felony in- dictment against Liddy. ? A spokesman for the Ches- apeake and Potomac Tele- phone Co. said yesterday that the company will comply with a subpoena. and provide the Democrats with a record of toll phone calls Made from John Mitchell's Watergate apartment between April 1, July 1 this year. The request Is part of the Democrats' $1 million civil suit filed follow- ing the 'June 17 Watergate incident. The attorney for the Derno- crats, Edward Bennett Wil- liams, had asked for Mitchell's telephone records last Friday, along with the phone records for the home of White House aide Charles W. Colso and argue- that the questioned funds were, collected before April 7 and therefore do not fall under- the jurisdiction of the GAO audit, The sources and .the Nixon campaign officials ? were in dispute about 'whether. inost1 violations were technical in! nature or more serious ones' that could be referred to thel Justice Department for crimi- nal action. ? -! Philip S.. Hughes, director of the new office of federal dee-. tions in the GAO,'said yester- day that he could not confirm or deny the report of- the al- leged violations by the Nixon re-election committee.. ? . He ordered a run audit of the President's campaign fia inances on Aug. 1 following 1The Washington Post's dis- closure that a $25,000 cam-. paign. .check ended up in the bank account of one of the Watergate suspects. , Yesterday, Hughes said that e governmen s pro em compounded by the difficulty of enforcing a new election law that ,Itas not yet been inter- preted by the courts: , Meanwhile, Hughes has made it clear that he intends to fully audit the finance records of the Democrats and their presiden- tial candidate, ?Sen. George Mc- Govern. As the Republicans gather in Miami for their convention, two camps of opinion se-ein to be developing about the Wa- tergate incident and the Nixon committee's bookkeeping. One, backed by Clark Mac- Gregor, director of the Presi- dent's re-election ? committee, holds. that major disclosures about both matters have run their course and that neither , will be a dominant issue in the ; presidential campaign: The other camp ? believes .1 that additional , disclosures? ' inchiding links to other Nixon campaign officials?are forth- coming and will play a major part in the campaign. The disclosures began on June 17, when five men with bugging and photographic equipment were arrested in- side - Democratic National Committee headquarters here of the office of the Committee his office would issue a report at the Watergate. for the Re-election of the on its audit this week. "We're ? ? One of the 'men, James W. President. trying to figure out what's to The C.& P:.spokesman said be said. It's a meas. Same of the company willprovide the all of 'this is obviously a coin- Democrats with all the tele- cidence, some of it isn't," said phone records. "We will com- ply with the subpoenas," he said. ? In disclosing details of the GAO investigation, sources said the audit turned up jury that is still investigating dence of several special ac-1 the Watergate incident for counts or accumulations of1 possible ariminal indictments. cash that they described as "But, I hope the report will be "slush funds." Such items did clear," he said. not appear to. be included in: Sources close to the GAO the regular bookkeeping Mania !investigation r e p t e d that tamed by the President's:- ref- Hughes is uncertain which as- election committ e e, the peetS of the audit should be sources said. made public at this time, a p0- One such fund of about litically sensitive period in the $100,000 was designated for midst of a presidential cam- campaign security, the sources palm said. A $25,000 campaign check At the same time, GAO law- deposited in the 'Miami bank yers were reportedly going account of one of the suspects over the list of alleged viola- in the Watergate break-in was tions yesterday to determine taken from this fund, the the strength of charges that sources Said. could be made on each one. One source said. that the In some cases, the sources that if there were any viola- GAO has found a "rat's.nesta' said the alleged violations may tions, they wouldprove to be behind the surface ?efficiency never become public because only tech:111617)04w of computerized financial re- the GAO?which is the investi- nothing Rete4rsebs200149t104,e:felkalKsteVircAtikak0 trative oversights. , the Re-election o ie rest- o publicizing violations. Hughes. ? . ? He said ,the audit_ report would contain "some gaps" be- cause he alid not want to inter- fere. with the federal grand dent. ? ? ? compliance with the law than McCord Jr., was identified as the security chief of the Nixon re-election committee. In the next week it was revealed that at least two of the suspects had close ties to a White House consultant and former Central Intelligence Agency, employee, E. Howard Hunt Jr. Hunt was relieved of his du- ties at the White House, dropped from sight for several weeks and surfaced in an ap- pearance before the grand jury investigating the case. In July, it was revealed that Liddy?a former White House aide and the finance counsel for the Nixon campaign?was fired because he refused to an- swer FBI questions about the Watergate incident. ? In court papers examined yesterday, Liddy's lawyer said that Assistant U.S. Attorney Donald E. Campbell "related to me that, in his opinion, there was sufficient evidence before the grand jury to result in a felony indictment of my client." 00190001-2 continuec-; ? , , STATINTL Approved For Release 20NER1 WRDP80-01 21 AUG 1972 . hi ase Manager Questioned ? By NANCY BECKHAM Star-News Staff Writer Members of "the security in. telligence squad" of the Com- mittee for the Re-election of . the President, according to Time magazine, were on the receiving end of electronic de- vices planted in the Democrat- ic National Committee offices . in the Watergate. But Robert Mardian, a for- . . -rner assistant 'U.S. attorney general named by Timb in its ? - current. issue as a member of the team that became their,- ? telligeno squad, said last night that he has never heard ' of such a squad. He also said he does not know the other ? Persons the magafiine said were fellow members of the .team. ' Paul L. Chapman, manager of the motel, confirmed last night that the FBI had checked some of his records and had questioned him, but he refused to say what names were mentioned, what time pe- riod was discussed or whether he knew anything about the affair. As police were arresting five men inside the Democratic of- fices, according to Time, "the recording equipment in the Howard Johnson's motel was being hurriedly removed." James W: McCord Jr., secu- rity coordinator for the. Nixon campaign committee at the time and one of the five men arrested, "apparently'? as- signed jobs to "the eavesdrop- pers across the street," Time said. The magazine linked Mardi- ? an to the bugging ineident by a thread of relationships stem- ming from the fact that, it said, Mardian and Robert H. Allen are top officials of the Nixon campaign in Texas. Allen, ; it said, is president of Gulf Resources & Chemical Corp.. of Houston, Tex.' a firm it said is a "principal client" of Mexico City attorney Man- uel Ogarrio Daguerre. ' ? In Miami Beach, Atty. Gen. Richard Kleindienst said yes- terday grand jury action in the. Watergate incident is immi- nent, according to the Asso- ciated Press., ? "It (the grand jury) could act within a NiTeek or it may delay until around Labor Day," Kleindienst' told a news conference.. Time said the members of the ,original security team in- cludes G. Gordon Liddy, who was fired as GOP committee attorney for refusing to coop- erate with FBI agents in the investigation of the June j break-in, and E. Howard Hunt, ?,..) a former White House aide and CIA agent. Both Liddy and Hunt are un- der subpoena by the Demo- cratic Party in a civil suit growing out of.the affair. But the Time 'story was the first time Mardian, currently an 'official of the Committee ? for the Re-election of the Pres- ident, has been mentioned. Time said members of the Intelligence squad were tuned into the bugs in the Democrat- ic offices in positions in a Howard Johnson motel just across Virginia Avenue NW .from the Watergate. ,Daguerre'S name has come up in connection with $89,000 deposited in a Miami bank ac-' count in the name of Bernard. Barker, an ex-CIA agent who was among the five arrested in the Watergate. Mardian, Hunt and Liddy; Time said, were mernberS of a ? team originally recruited to in- vestigate information leaks. from the government to the news media. Mardian said early today in Miami Beach, where he is at the Republican convention, that the FBI had been asked to investigate leaks from the Na- tional Security Council to newsmen. But, he said, that was the only effort to plug leaks of? which he was aware. . In the Dark He said he does not know Barker Or HUM, and knew Lid- dy only slightly 'from his Jus- tice Department days. "I. am surprised Time would print such a thing," he said. 'Whoever wrote it is'. full of He said the first he knew of - the Watergate incident was through the news media and added: ".Anybody Who knows me ought to know better than to write anything like that." Until the resigned last April o work for the Committee for thb Re-election of the Presi- dent, Mardian waS in charge of the Justice Department's internal security division. Argued for Wiretaps In that post, he .argued be- fore the Supreme Court that the "integrity" Of the Justice ? Department, should be relied upon and the government should be allowed to wiretap without court order when do, mestic ? security is threatened. The court disagreed. ?When he came to the Justice Department fr.= a Health, Education and Welfare De- partment post, where he had been a leading proponent of antibusing measures, Mardian was described as "an intimate policy adviser" to then-Atty. Gen. John Mitchell. Approved For Release 2001/03/04 :.CIA-RDP80-01601R000200190001-2 MIAMI HELD Approved For Release 200410R4stu*FDP80-01601 Demo Duo's, 4117 tieal hip17 Nixon Men' Time: Break-in Was To Remove Them - 'WASHINGTON (AP) ? Members of the Committee fOr the Reelection of the President were on the receiv% big end of bugs planted in the national headquarters of the Democratic Party,, ac- cording to Tim G magazine. Also,. the five persons ar- rested during a break-in at the plush Watergate offices where. the headquarters were ' located were removing the -bugs when caught in the act, Time.. says ? in its issue that goes.on sale today. . As they were being arrest-. ed the night of June 17, the magazine reports, members ? of the Nixon . committee's "security-intelligence" squad were packing up tapes and note S and leaving the place where they had set up moni- toring headquArters ? a Motel across the street from the Watergate complex. - TIME .DID NOT say how. long, long the bugging de- vices allegedly were in the Democratic National Com- mittee headquarters. Time said the JuStice Department was aware of the information in its article. . Former Democratic Na- tional.Chairman Lawrence F. O'Brien has charged that the bugs were in the 'offices for some time before being dis- covered. The committee has filed a ? $1-million suit in U.S. Dis- trict Court in Washington, 'charging that ? the party's civil rights were violated by the break-in and alleged bug- ging. ? - .One of 'those arrested was James W. McCord Jr., then a / TIME ALSO said . security coordinator for the was "a possibility that the reelection committee. ? "The Watergate forces planned to eavesdroppers .. across tho , plant incendiary bombs in Democrat- street had apparently. been. the hall daring the Convetion or conspired to assigned their tasks by Mc- ? have the hall stormed . by Cord," Time said, . paid Cuban exile. mercenar- ies," IT SAID the intelligence squad grew out of a -team "The DemacratS are sus- Originally recruited by the pecting the best," the maga- N ixon Administration to zine wrote. probe leaks to the thedia. "They theorize that. the Time said the "team Of media Republicans might have fan- "plumbers" -- but, n6t ncces- tasized a. convention propos- sarily those in the motel ? al that a new Democratic ad- , included C. Gordon Liddy, a ministration open ? dialogues former White House staffer ?wfth Fidel Castro, thus leav- who was then attorney for jog itself Open to attack in the reelection committee's fi- I Miami 13each last month by nance unit, and E. HowardV anti-Castro Cubans." - ? Hunt, a former White house consultant. Several of those arrested at the Watergate reportedly Time also.. said that the had ties to anti-Castro move- 'Justice Department had dis- ments. .covered that $89,000 of the money found in the bank ac; count 'of one Of those arrest- ed, former CIA agent Ber- nard?Barker, came through a Mexico City attorney, Mann- er Ogarrio Daguerre. "As it turns out," Time said, "one of Ogarrio's principal clients is the Gulf Resource. Chemi- cal Corp. of Houston, Tex. The firm's president, Robert H. Allen, also happens to be chairman of the. Texas fi- nance Committee to reelect ,Nixon." STATINTL Approved For Release 2001/03/04: CIA-RDP80-01601R000200190001-2 THE ECONOMIST STATINTL Approved. For Release 200fidia9tC1A7-ADP80-01601R000200190001-2 Watergate, part 2 There is one political serial running in Washington which lifts up the spirits )11 of the most depressed Democrat and ?I frt fr `1,1 f43I r1 which Senator McGovern is exploiting ? ielentlessly. It is the sequel to thc clumsy break-in at the Watergate bt, headquarters of the Democratic National Committee in June by five en with wire-tapping implements? / ,, and with connections reaching into the Central Intelligence Agency,. the Com- ? mittee for the Re-election of the Presi- dent, the Republican National Com- mittee and the White House itself. Suspicions of a link to someone high up in the Republican establishment have . been strengthened by the revelation that a cheque for $25,000, representing contributions to the Republican presi-. lenfial campaign, turned up in the . Florida bank account of Mr Bernard 3arker ; he is one of the five suspects Approved For fl 0 ffA C-t5 .CVk?n t 72.9:44(41/f? 0 C7'S 13140-. rAvy> sp "Strange?They Al] Seem To Ha Connection With This Place " VC Some . time of the break-in), has refused to postpone the trial. But next week Mr O'Brien's lawyers are to begin taking .formal 'statements from over a dozen Republicans, including Mr Stang and Mr John Mitchell, the former Attorney General and subsequently, for a time, head of the Committee to Re-elect the President. Meanwhile Senator Prox- mire, a Democrat, is threatening that the Senate will. institute its .own bipar- tisan examination, to be completed in 30 days, unless President Nixon arranges for an independent inquiry. in the bugging incident and apparently their leader. A cheque for $25,000 is small beer, no doubt, to a party Whose national :presidential committees have just reported collecting $3.8m and spending '$5.9m in June and July alone and which, on August 1st, still had $7.7m in the kitty. But the awkward fact is that a midwestern r fund-raiser gave the cheque to Mr Maurice Stans, the 'President's fund-raiser-in-chief, on ;April loth, three days after the, report- ing requirements . of the new federal elections act went into effect. Yet there is no record of it in the party's reports to the Office of Federal Elections. That office's head is now suggesting that - several violations of the act may have been committed. Wore still, Mr Stans? , has failed so far to make any public statement about what he did with the cheque. He is supposed to have told the Federal Bureau of Investigation that he turned it over to Mr G. Gordon Liddy, financial counsel tu the Com- mittee to Re-elect the President, and . that it was eventually exchanged for cash, which was paid into party funds. But this account raises new questions. Mr Liddy has since. been fired by the committee for refusing to answer the FBI's questions.' The Republicans, ostensibly to ensure that political passions do not intrude, want any trial or inquiry arising out of this affair to be postponed until 'after the election. They are likely to have ? .their wish, even if the grand jury now ? looking into the case brings in criminal indictments and even though the judge Who is to hear a $ j m civil suit (brought by Mr Lawrence O'Brien, head of the tic, National 'Committee at the Release 20E17004 : Clk-RDP80-01601R000200190001-2 -CHRISTIAN SCIENCE MONITOR Approved For Release12001/0344 : Washington hugging: Cases move slowly By Courtney R. Sheldon Staff correspondent of The Christian Science Monitor Washington The shadow of the Watergate mystery lengthens. It may linger for the whole presidential campaign, The civil and criminal court cases probing the: five-man break-in of the Democratic headquarters the night of June 17 move e'er so slowly. ? ? , Request for blockage denied. - Mr. Sloan was said to have given it to G. 'Gordon Liddy, lawyer for the finance corn- mittee for the Re-election of the President Clark MacGregor, chairman' of the Com- :mittee of the Nixon campaign. According to , ? ,- ? says that he and other Republican leaders Mr. MacGregor, the $25000 was properly aecounted for as a contribution. are justifiably concerned about the rights of ? ' the accused. Calth judicial adjudica.tion is the Disclosure aspect. checked .r Lawyers for the committee tried to block - He also said that no laws were violated . the civil suit until. after thewhen Mr. Dahlberg gave the $25,000, which election because,. lic it was said, it would caue "incalculable collected from others earlier, to Mr. Stone e damage." The courts refined thi Republican on April 10, three days after the deadline for s request. anonymous contributions. After April 7, all contributions inus t be identified. The General The plausible assuraption hhre now is that- Aecounting Office is investigating this as- no big-name polit'(.al rigure was directly involved in what ?????-nite 11.a.h.ia officials have Peet- Mr. Liddy was fired ? by the re eleetion called a "bizarre and stupid" act. Only a few challenge this. ? . committee after he refused to cooperate with ' FI31 agents working on the case.. Mr. Sioan It is not clear whether officials of the ? re- F131 for what he said were "personal -election corn h ham ? such as Maurice H..resi? _ . Stans, former - eecretary of commerce and reasons unrelated to the incident." e ? - ? - currently Mr. Nixon's chief fund raiser, and _ John N. Mitchell, former attorney general and nhahanan of th re-elect Nixon corn- Mti ei at the time of the Watergate incident, dr-egged still deeper into the affair becauee el their overall responsibilities for -the w oint of their subordinates. . Presumably the qUintet, with their surgical gloves and eavesdropping marvels, was trying to bug Democratic offices, or renew earlier bugging, or abscond with Democratic documents. ? In the absence of full exposure the tempo of the -trial by headlines accelerates in the ? ; campaign arena. ?2, Sen, George 3,1cGc7vern demands ex- . planations -from President Nixon on the alleged involvement of Republican personnel and finances. ? It is political espionage "that you expect ? under a person like Hitler," he charges. ,. In return Mr. McGovern is accused by Republicans of slurring Mr. Nixon. The Democratic nominee also feels he has ? a. handy entree for calling attention to Mr. Nixon's. refusal t.? publicize the names of all Republican contributors, as Mr.. McGovern _has disclosed the Democratic ones. Washington looks on with more knowledge of the political ramifications than of the legal facts., There is fascination with the drama, and engrossing uncertainty over the final act. . Is it in President ,Nixon's -interest to have the soiled?linen? whomever it belongs to ? draped on the political laundry line soon? ? Every visible White House effort thus far .has been to delay the investigations or push the whole affair into the background. .. However, White House officials say that ? there has been no administration pressure on the Federal Bureau of Investigation to curb its investigation. They say the FBI's findings .should be made available to the public before :Election Day. Lawrence F. O'Brien, former chairman of ? - the Democratic National Committee, pleaded for Mr. Nixon to appoint a special nonparti- san prosecutor to replace the Republican- - 'controlled department investigators. He was disdainfully rebuffed at the White House. - ? ? ? tcn?eeirrity division tie-in From the evidence available it , appears that the break-in was financed from re-elect Nixon committee funds designated for "se- curity purposes.". The walkie-talkies used by the rather inept Invaders of the Democratic headquarters were set for channels assigned to the security division of the Committee for the Re-election of the President. There is some indication that they may, , have been in search of documents that could somehow link the Democrats to expected provocative protests at the Republican Na- ? ? tional Convention. The political naivete of the quintet and its sponsors astounds almost everyone in Wash-, ington. Only persons addicted to espionage ld have ia,tionsure. At re that ubvert- ocratic h Corn- and paramilitary-type operations won thought such a risk worthwhile. Indeed, those arrested had assoc. with the calamitous Bay of Pigs vent one time, it was generally thoughthe the arrested men were interested in s ing anything that looked like a Dem movement to warm up relations wit munist Cuba. Former FBI and CIA agent ? One Of the men accused in the Watergate case is James W. McCord Jr., security coordinator for the re-election committee at the time. Mr. McCord is a former agent of the' FBI and the Central Intelligence Agency. ? Huge sums were reported involved, with ? !some $114,000 ending up in the Florida bank laccount of Bernard L. Barker, another of the five arrested. ? By admission of those involved, some 05,000 of this was deposited in the form of a ' $25,000 Cashier's check originally earmarked ? for Mr. Nixon's re-election campaign. ? Kenneth , H. Dahlberg, the campaign fi-. ranee chairman, for the Midwest, says he gave the cheek to Mr. Stans. Mr. Stans stays discreetly out of public view, but committee sources say that he - turned the check over to Hugh W. Sloan, Approved For Release /001V0VO4'ZIA-RDP80-01601R000200190001-2 tf)r Approved For Release 261ti3A4N. eviltRvaeol_66R . 19 An 1972 , 0 ' By PAUL HOPE Star:News Staff Writer . ;. ? MIAMI BEACH -- The Wa- tergate caper is bugging Re- publicans gathering here to re- komlnate President Nixon. Party Chairman Robert . . Dole told several newsmen ? last night he is sure NiXen is ? going to be re - elected but he wishes the break in at the Democratic headquarters was ? "behind us." . ? Elliot Richardson, Health, , ,Education , and Welfare secre- ? . tary, said here he was sure no one in authority .would have? been so "stupid" as* to have authorized, it and if they had it wouldn't have been carried out So Ineptly. ? ' Atty, Gen. Richard G. Klein- dienst was scheduled to have a ?:press conference yesterday . but he sent Richardson instead, and everyone there but Rich- ? ardson thought Kleindienst ? bugged out. because he didn't want to answer questions about the alleged bugging. ? , Dole started things off Thursday when ho asked Re.- publican. state chairmen at a closed meeting if the Water- gate controversy was having ? .any Impact in their states, Some ? thought it was. That prompted Dole to observe that "something has to be done and done soon", and that if any- thing more is going to come out to connect Republican of fi- ? cials with the incident, "it Iought to come out now and not ; on the 2,8th of October." Wants it Over With He talked 'about it further last night with a group of newsmen. ? : Although some state GOP chairmen apparently think the ,affair has been mishandled by Republican officials in Wash- ington, Dole didn't accuse any- one of bungling. "I would ? just 'hope it would ' get over. I wish It were behind, us," he Said. . But he said the Republican National Committee wasn't in- volved, in any way and he ? Hiereford 'doesn't have "any authority to do anything about it." ? He said he didn't think tho. incident would have a "major impact" on the Nixon cam- paign but that as long as it "boils and festers" it will be an irritant. - Richardson,: substitultig for Kleindienst, said he had "no. reason to think the campaign has been hurt!' by.the Water- 'gate affair. Moreover, he said, there is 'no' reason" to connect it with President Nixon or the Repub- lican National Committee or the Committee for the Re - election of the President as the Democratic presidential candidate, Sen. George S. McGovern, has. alluded. "I don't think they \..-ould be that stupid," he said.. ''If they did, I don't. think it would be h a n- died that ineptly.... Therefore, it .seems to inc im-* probable that they did in fact do it." ? Richardson based his con- clusion on the fact that he has been involved in politics for some time and that "experi7 enced politicians" of his ac- ? quaintance always overruled schemes aimed at "spying" on the opposition. "Experienced he said, "know you can get too smart for yourself." ? Richardson was asked if he had any idea what the Water- gate intruders had in mind and who sent them. He said he, didn't know enough about it to have a firm opinion but he had seen reports linking them to Castro's Cuba. . ? Aside from the handling of the Watergate incident, GOP Chairman Dole indicated that some of the state chairmen were not exactly happy about the way the Committtee for the Re-election of the presi- dent is handling things in gen:. era'. ? ? He said they didn't come to the Thursday meeting to c o in p 1 a 1 n. but that there seemed ? to be a feeling among some that "we need closer co- ordination." Look Beyond - Actually, he said, there is a univerS'al feeling. among Re- publicans that Nixon is going to Win- re-election. But he said Republican leaders Want to look beyond ?the re-election of the President to building the Republican party into a ma- jority party. ? "What they (the state chair- men) were trying to say is that this is an excellent year .to build the party?'-a golden ? opportunity that doesn't come along Very often," he said. He indicated they wanted to get a bigger input from the "basic organization of the Re- publican party" and not just from the "superstructure thrown up on a temporary ba- sis" .for the re-election of the President. Ile said he and regional par- ty chairmen plan to get togeth- er today with Clark Mac- Gregor, chairman of the Nixon re-election committee, to dis- cuss how they can achieve closer cooperation. Approved For Release 2001/.03/04 : CIA-RDF'80-01601R000200190601-2 ? 'STATINTL, Approved For Release 200f4S/04iFefAMOMPOi601R 11-17 AUgySt 1972' r f 1 . 1 1_,_: ART KUNKIN ?, Less than two weeks before the opening: of the Rtpublican National Corweolibn, a press confor'ence. held .at the Los Angeles Press Club heard ?, woman i speaker say that the five ? ? :I' r\? t )).1 1.: I I . ) . 1-=-4 I tri ,11 t , ., , ? STATINTL EttA V,,-,1)oj : . . ? 1. ? 1 - ? . . . ? 1...1 nal r f;f"....ck,':;"..t r`-`?; f".' -.;:l'-'il . 177 rrl.07 (7::.1 r-4 ( In [1 ' " . n fl 0 n " ,t? LI. ;.;',.' ij 1:. '.f!L..,i'!.!?.j.i'ihl:*41 ''':!:i'l' .\ r-'4!;1 i' gi fP ; 4 4 ,1 . ?, , .. ..? ? ;10., ? C.:" ,;it -- ,'-"' i ? '4 - l''' I-. l.' ' t-i- \t'i ti?-:.i'?i k.?''',--"I 02 C?-'-'?:!-' '-:,.ii I '4" Li O. ti (..:',??:-.? 1::! hi i: u'r L-.4 ti...1 %;:,..-...i L:Ai ? '71) 11 II 01) 1 ??? !Y- ri Lit LU?4 rrio.n caught wiretapping the ..... _ ___ . . . ...a. . ? . . Democratic Party National Commit- tee headquarters in Washington's . :.Voted in the. Central Intelligence j Watergate Hotel were not only in- ; Agency, the Say bf Pigs invasion - !and. ' President Kennedy'. removing parts Of the ceiyng. from - ? ? ?the ixth floor panels in the- khown that at least 12 men and - ; assass s ' .ination but ' also with plans 6114,000 were involved, and that the , I first revealed last year tv t os Democratic National Headquarters. . invaders were discovered putting, ? . : Angeles Police informer Louis Tack- . - - --'? --- - These men possessed expensive- forged documents of some kind into .files, not taking papers out. They other James Bond accessories. were not burglars, they were not. ? Angeles Free Press, October 22, . functioning with a "bugging" budget ? . Two of the men arrested had. in '1971.) 'or with the numbers usually. :1 These Charges were made by Mae their poasession .lie telephone num- ? associated with mere 'wiretapping. . . ? ? : ber of :Howard Hunt White HouseV . (We must- caution, however, that ?Brus,sell, a well. known private in- . consuitant who had the past nine previously 'veStigator into . American political work- ? the Free Press, has no means at ed With the- CIA for 21 years. assassinations for. /? present of independently verifying James McCord, Jr.. empldyed asi/ facts such as documents ? being :years. She was accompanied by Chief of Security for Mitchell's Corn- ' :Michael McCarthy 'of The Citizen's planted instead of being removed, ResearCh Investigation Committee, mittee to Re-Elect Richard Nixon, ? and that Don Freed, evidently, bases '. was one of the? five men arrested. ione of the CNC investigators who ' much . of ? his information on a McCord was formerly employed by ? collation from such sources as the ? ,origin&Ily. checked 'out Tack wood's the CIA for nineteen years, having ? Washington Post, which . has ' 'charges, and Paul Krassner, editor laft two years' 'previously at ap- ? published carefully documented .ar- ? 'of The Realist. The current issue of i M proximately the same time as Hunt. ?'20-page article by Ms. Brussels b Realist (August, 1972) contains a 'tides on the 'raid. Freed has also. McCord's position withthe CIA was Which was distributed to the thief of Security over -the entire : . , . made n g ti no vn. e, s t Di g. ca t. i)v. e trips _ t o newsmen af the press conference as groUnds of the imMeriSetiA corn- ? -'. Following. the raid, a million dollar ?:the :basis for Ms. Brussels asser-. pound at Langley. Virgini6. Accord- ! suit was fled by the Democrats a ,tions. - ing to Mae Brussel!, this Out McCord .. against the Committee for the Re- in a very high, responsible position , Election of the President for corn- According to Ms. .Brussell the WaterQate Hotel, locatpd : in in relation to.CIA Director Helms ipensatory and punitive damages to Washington, p.p., was the home of who could not conceivably carry out . the Democratic headquarters. The ' !John and Martha Mitchell at the time ? any intelligence, planning without, Nixon CoMmittee then asked a U.S. relying On McCord to ensure that District Court to postpone the it su Also housed in the Watergate lalotbl complex are the offices of the Democratic National Committee. ' In the early morning hours of June 17, 1972, five men were arrested According to Don Freed of CHIC . (who was not at the press con- ference but submitted:, additional material to the Free Press), within six weeks of the first arrests it was' -wood to: disrupt the Republican electronic equipment, cameras; National Convention. (See the Los walkie-talkies, burglary tools, and :of the attempted wiretapping of the CIA plans were kept secret. ?? Until after 'the November 7th eleo- pemocratie Party .National Commit- . Nine persons (all registered with lion. To hear the suit before the tee. John Mitchell, former Attorney false names suspiciously similar to election, the CoMmittee said,' coula1 General of the United States, had names used in novels written ,by doter campaign workers and con- Shortly before resigned that HoWard Hunt) stayed at the tributions, force disclosure of con- prestigious position to head the Watergate Hotel May 26 to 29, and . fidential information and otherwise Portant Committee to Re-Elect the again June 17 and 18. Five of them,bause "incalculable damage" to President. 'the night of their arrest, were President Nixon's campaign. discovered in the Democratic Party ? Approved For ReleOr 201 / 143 03104 101:-ROP80-01601R000200190001-2 s noticed pieces of scotch tape ? ? - over the doOr locks. Washingt-on police arrived and ma-le the arrests . inued: Approved For Release 200WIRG4T?VaDP80-01601R0 17 AUG 1972 STATINTL JAMES J. K1VATTICK SOTribe SpSall cracks. on SCRABBLE, Va. ? We had as .Our guest one night last week . a gentleman, now retired, who had spent his life in intelligence work. The after-dinner conversation turned to the Watergate caper. .uur guest had a few specula- .' Hops 'to offer. I pass them ? along. By the Way of background: ?,This bizarre affair broke into the news hi the early hours of . June 17, when five men were caught red-handed in the of- fices of the 'Democratic Na- tional Committee, located in . the plush Watergate apart- merit complex in Washington, ?.Their mission, by every inch- cation, -was political espion- age. f? ? Four of the five men had backgrounds in Miami, where- ' .they were identified with the ) Free Cuba, a,ati-Castro move- ' merit. The fifth was a for- 'per CIA employe, James W. .McCord 'Jr.; now a private consultant on security proce- dures, , When it transpired that Mc- "'Cent numbered among his clients ..both the . Committee for the, Re-election of the NEW YORK DAILY NEWq lqr SIAILL Approved For Release Autu;5/04 : CIA N -Kurou-Iu160 Ammo.. ?? ? 1s1 _?,1 \ ..., ]:,..::1 i ..-J t. p;;;,,,Zry