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August 22, 2001
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April 2, 1974
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Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 IThe Washington lterry-GoZtound aterg te Forces Retirement-at C THE WASHINGTON POST Tuesday , Aprli 2, 1974 B15y Jaek Anderson. The Watergate has claimed a 'major victim in the Central In- telligence Agency with the 'forced retirement of its dedi- cated director of security, How- ard Osborn. A veteran of 26 years at the cloak-and-dagger complex, the 56-year-old Osborn was caught up in the suppression of a mys- terious CIA Memo that, de- scribed how documents were burned at the home of Water- bugger James McCord, an ex- CIA agent. . The secret memo was based on information supplied by a former FBI inspector, Lee Pen- nington, then with the CIA as a paid "consultant." Pennington, an old family friend of the Mc- Cords', had visited Mrs. McCord after her husband was arrested inside Democratic' National Committee headquarters in June, 1972. He found her burn- .ing papers and documents. Ear- lier, she had burned typewriter 'ribbons. Pennington loyally reported the episode to his CIA bosses, and the CIA wrote it up in memo form. For more than a year and a half, it lay in the CIA files like a paper bomb. Meanwhile, FBI sleuths were asking embarrassing questiong ?about whether the CIA knew of destroyed documents from among McCord's papers, and were getting persistent denials from the CIA. Finally, Senate Watergate committee vice chairman How- ard H. Baker Jr. (R-Tenn.) began snooping into the CIA role in the cover-up, and a middle-level CIA employee who knew of the hidden memo threatened to blow the whistle. After some debate, CIA Direc- tor William' Colby was told of the suppressed memo and he quickly contacted Rep. Lucien Nedzi (D-Mich.), chairman of a House intelligence subcommitd tee. They agreed that the best Course was to let all congres- sional committees involved in the Watergate probe, as well as Leon Jaworski's special (prose- cutors, know about the memo. Nedzi, after full hearings with Pennington, McCord and CIA of- ficials including ?Osborn, con- cluded that the CIA had not dis- patched Pennington to burn the papers, as the memo seemed to suggest. Osborn claimed that he had not even known of the memo. Nevertheless, Nedzi and Colby were both worried about the cover-up.; 'It "It led tpthe early retirement of Osborn," Nedzi told us. When we reached the ex-CIA security boss at his home near the agency he had served so long, he clung to his oath of secrecy. "I had planned for over a year to retire in June," Osborn in- sisted. "I realized there was no financial benefit to staying and decided to retire . . ." . Navy Blues?A defense 'con- tractor has charged that a boy- hood friend of Sen. Russell B. Long (D-La.) offered the sena- tor's services for $150,000 to set- tle the contractor's dispute with the Navy. , ? ' Long, chairMan of the power- ful Senate Finance Committee, knew nothing of any such offer, according to. his. office, nor.has our? investigation ? showed that Long ever authorized one. J. Roy Beene', who i accused of mak- ing the offer, swore to us: -"I never asked for a dime. I never expected anything." But the contractor, Lewis Mal- nak of Cherry Hill, NJ., has told Internal Revenue Service inves- tigators that Beene' sought cash for his services.- ? Malnak, president of Lew Mal- nak Associates, went to Becnel in :1972 for help in settling a $750,000 contract claim with the Navy, Malnak says he had heard that Becnel knew Long and that Beene" identified himself as a "bag man" for. the Louisiana senator. -Malnak swears that Becnel asked for $50,000 in cash "to get the claim settled immediately" through Long's office. When Malnak protested that he lacked such a large sum, Becnel sug- gested that he boost his claim above $1 million and pay $150,- 000 if Becnel's efforts were suc- cessful, according to Malnak. Malnak, with no important contacts in 'Washington, had tried several tithes unsuccess- fully to see Long's top aide, Bob Hunter. Once Cecnel became in- volved in the' case, the haI;Tier:s;.f fell quickly. ? t "They, walked Beene" in liki he was a member of the staff,". Malnak recants. HP claims Hunter promised to "look (the case). because Beenet: asked him to." Malnak's show he met with liunter4hrek.1 times in 1972. " ? At the last meeing, Malnak says, he felt that Hunter had lost ? interest. Malnak says he never!,;, promised nor paid Beene' commission, nor ever talked money with Hunter. In commenting on the case,.. Hunter says he has known Bec,,. nel for years, as has Long. Hunter recalls meeting with 'Malnak at Becnel's request, but says he did nothing to help Mal- nak. ' Becnel,'a former justice of the peace and drainage contractor, hotly contests Malnak's story. "I'm not a satchel man," hp steamed. "I never knew Russell ' Long" to take a dime. I'll get hold of Malnak and break his neck." Footnote: Malnak's interest is;-, in getting his claim settled. He., charges that he was "black-; mailed" after his detection equipment discovered that,thes Navy had bought faulty distress-,A warning devices for Polaris-. subs. Reps. Edwin Forsythe (R-.,, N.J.) and Les Aspin (D-Wis.) have asked for a complete Jus- tice Department probe of the , Navy's handling of the caSe. , " 19/4 United Feature Syndicate Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 Approved For Relea'ile41001/09/04 : CJA-RDP -00499R000200010002-2 SEN. 110WARD 11. BAKER JR. ... probes CIA involvement Baker to Say. CIA Helped Hunt Get Job By Laurence Stern Washicatari Peat Staff Writer Testimony indicating that a Central Intelligence Agency official recom- mended the employment of Watergate conspirator E. Howard Hunt jr. by a Washington public relations firm which has served as a CIA "cover" will be released today by Sen. [Toward H. Baker Jr. (B-Tenn.). The public relations firm is Robert' Mullen & Co., whose relationship with the CIA forms a central. theme of the Baker report cleared by the CIA for - release last weekend. Hunt was recommended tO the Mul- ?l len firm at the time of his retirement from the agency in 1970 by a CIA offi- ? cial identified as Frank O'Malley. , There have been unsubstantiated alle- gations in the case that Hunt was re- commended to Mullen by former CIA Director Richard M. helms. Itoth the CIA and officials of the Mullen company have acknowledged- their mutual tics, which included pro- viding a corporate cover for CIA oper- ?atives in Mullen & Co. offices in Singa- pore and Amsterdam. Sources who have examined the re- ' port say it provides no conclusive links between the CIA and the original . Watergate break-in such as have been hinted by former White House aide: Charles Colson and by Baker. However, it includes documentation in the form of three CIA memoranda . roved-For Release 2601095/0' 11,:4161AQkbP84-00499R000Z00010002-2 ? , , Approved For Release 2001/09/04: C1A-RDP84-00499R000200010002-2 A 8 Tuesday, Icily 2, 1974 -- THE WASHINGTON POST Baker to Issue Report CI BAKER, From Al t which point to covert effogts by offi- . *,eials of the agency to minimize its in. volvement in the Watergate investiga- ^, tion. *, There is also some evidence that * Robert F. Bennett, president of Mullen t. and son of Sen. Wallace F. Bennet (R- ., t "Utah), was tipped off prior to. the t Watergate burglary that a White House break-in team was targeting Mc- Govern campaign headquarters for a ? rpolitical intelligence raid. Bennett has privately acknowledged . ? that he was given advance knowledge ? * of the operations of the burglary team. ? But it was unknown whether he passed I this information on to the CIA. . ? The memos upon which Raker drew . in the preparation of his report were * drafted by Eric W. Eisenstadt, chief of ? the central cover staff for the CIA's clandestine directorate; Martin J. Lu- '* Icasky, Bennett's "case officer" within the agency, and subordinates of former *I CIA security director Howard Osborn, who recently took an early retirement from the CIA. The Eisenstadt and Lukasky memos ? recount the CIA's relationships with Mullen & Co. and recount claims by ???? Bennett that he planted unfavorable stories in Newsweek and The Washing- ., er ate Tie ton Post dealing with White House draft version of Baker's report. , aides, including Colson. The object of ?, these stories, the Baker report will in-. dicate, was to draw attention away' from CIA involvement in the Water- gate case. The Osborn material, as presented by Baker, suggests that the former ? CIA security director provided mis- leading information to the FBI on the identity of a former federal investiga- tor who helped Watergate burglar James W. McCord Jr.'s wife destroy CIA records at their home immedi- ately after her husband's arrest in the Watergate break-in case. Osborn's retirement, according to one official familiar with the handling of the case, was an outgrowth of the Internal memorandum prepared in Osborn's office which resulted in the transmission of misleading informa- tion to the FBI. Rep. Lucien N. Nedzi (D-Mich.), who has reviewed a draft of the Btiker re- port, said Sunday on the CBS pro- gram "Face the Nation" (WTOP) that it contained "no bombshells." Nedzi, chairman of the House Armed Service Intelligence Subcommittee, has taken testimony from CIA officials on a number of allegations mad' in the The Michigan Democrat is said to be in contact with the CIA's con- gressional liaison office on an almost day-to-day basis as new allegations ? have arisen suggesting new involve- ments by the agency in the Water- gate scandal. Some of Baker's colleagues on the Senate Watergate committee, of which he served as co-chairman, have charged that Baker has sought to im- plicate the CIA in the scandal to di- vert attention from the White House role in the break-in and ensuing cover- up. The report also questions why photo- graphs found in the CIA file taken by members of the White House "plumb- ers" team during the Ellsberg break-in were not turned over to the FBI, even ? though agency officials were aware of their evidentiary significance. By and large, the Baker report reaches no definite conclusions but it ? suggests continued investigation of the relationships between the CIA and Watergate and names prospective wit- nesses to be examined. ?.The Senate Watergate committee has gone out of existence but will issue its final report next week. Approved For Release 2001/09/04 : CIA-ROP84-00499R000200010002-2 ? AND DREARY ? Cloudy cool today, chance of ers this afternoon and ht. Flish today in 60s, toniclit near SO. rday's hi, 65 at 1:30 Today's 45 at 12:30 Details: Pc.cje A-2. ear. So. 139 r17 (Lts) /7Y:\(/:\ii/evs\re ; II N.s> and rioN1 WAS El !J4 GTOM &Flo E E V\1 Copyright n 1.973 The Evening Star Newr,....ar Co. WASHINGTON, D.C., SATURDAY, MAY 19, 1973__44 PAGES Phone 484-5000 CIRCULATION 4843000 CLASSIFIED 484-6000 Csi 10 Cents g 0 0 Csi 0 0 0 ADMITS MAKING CLEMENCY OFFER 0 0 0 Cs.1 0 0 0 0, 7 By BARRY ICALB and MARTHA ANGLE Star-News Staff Writers The Senate Watergate investigation appears headed for a major conflict in testimony betwen two of its star witnesses, James W. McCord Jr. and John J. Caulfield, the man who admits he transmitted offers of executive clemency from the White House to McCord. McCord told the committee yesterday that dur- ing meetings in January, Caulfield promised him clemency, money for his family and other induce- ments to plead guilty at the Watergate trial then under way. McCord said Caulfield told him Presi- dent Nixon was personally aware of the offers. Caulfield, The Star-News has learned, has al- ready admitted to the Watergate grand jury that he made the offers to McCord as McCord said. But Caulfield also told the grand jury, according to informed sources, that he never mentioned the name of Nixon or anybody else in connection with the offers. FOLLOWING McCord's nationally televised statements yesterday, presidential press secre- tary Ronald L. Ziegler said at the White House that the President "at no time authorized anyone" to make such offers. Ziegler repeated previous statements that the Prpc;cipnt nvr rrirticinated in or know of the JOHN J. CAULFIELD JAMES AIcCORD JR. o Approved For Release 2001/09/.04: CIA-RDP84-00499R000200010002-2 President never participated in or knew of the cover-up. He also denied that Nixon has any in- tention, because of the Watergate scandal, of re- signing before his second term is up. The discrepancy between McCord's, and Caulfield's versions of their meetings, plus mat- ters such as a secret letter which sources say McCord mailed to Caulfield in December but has never mentioned in testimony anywhere, raises doubts about some of McCord's testimony. Caulfield has told the grand jury that he made the offers to McCord on orders of his former boss, then White House counsel John W. Dean III. THIS CONFESSION, and Caulfield's corrobo- ration of the fact that the offers were made, pro- vide some of the firmest evidence to date that White I-Muse officials were deeply involved in the Watergate cover-up. Caulfield could not be reached personally for comment, but did, read this statement for televi- sion cameras: "I have briefly reviewed Mr. McCord's state- ment before the Senate Select Committee, and while it does not fully reflect my best recollection of the events which took place between he and I during January of this year, it is true that I met with Mr. McCord on three occasions in January and conveyed to him certain messages from a high White House official." Caulfield then said that he had "fully disclosed" the pertinent information to the grand jury, and has been questioned on two occasions by the Senate committee staff. He is due to testify publicly before the committee on Tuesday, after McCord finishes, and reportedly plans to invoke neither executive privileges nor his 5th Amend- ment right against self-incrimination. Caulfield, according to The Star-News' sources, realizes he could face criminal prosecu- tion for aiding in an obstruction of justice, but has chosen to testify freely anyway. THE PROSECUTORS, however, reportedly are more interested in his testimony than in pros- ecuting him, and therefore do not plan at the moment to indict him. The same strategy was used during the Watergate trial with Alfred C. Baldwin III, who told of operating the wiretap placed clandestinely inside Democratic National Committee headquarters last spring. See McCORD, Page A-11 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 By Fred Barnes Star?News Staff Writer A House Armed Services subcommittee has subpoe- naed Watergate conspirator E. Howard Hunt Jr. to testi- fy about how he gained ac- cess to the Central Intelli- gence Agency in 1971. ' When Hunt appears on Thursday, it will be his first testimony before any of the 'congressional committees I that are looking into aspects of the Watergate scandal. He is slated to testify later before the special Senate I Watergate committee. . A former CIA agent, Hunt " is now serving a 35-year prison term for his part in the break-in a year ago at ? the Democratic party's headquarters at the Water- gate. The House subcommittee wants to question Hunt in regard to his activity in 1971 as a member of a special :White House team, known as ''the plumbers," that was assigned to track down .leaks of national security information. HUNT MADE contact with CIA officials in July 1971 and was given burglary equipment that was used in the break-in at the office of Daniel EIlsberg's psychia-. !trist in Los Angeles. In addition, Hunt was . able to query a top CIA op- erative, Lt. Col. Lucien Concin, about Ellsberg and the Pentagon Papers, the :47-volume secret study of :the war in Vietnam which Ellsberg released to the :press. ; According to testimony of Gen. Robert Cushman, the CIA's deputy director in 1971, White House aide John Ehrlichman phoned him to ' clear the way for Hunt :to get in touch with CIA offi- 1 LES/EC-PAA roVed For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 cials. Ehrlichman has de- nied this. The House subcommittee, which is headed by Rep. Lucian Nedzi, D-Mich., is seeking Hunt's version of how he got into CIA head- quarters on repeated occa- sions, which officials he dealt with and what assist- ance he received. AMONG OTHER things, the subcommittee is inter- ested in finding out if Hunt got CIA aid in forging ca- bles that implicated the Kennedy administration in the assassination of Presi- dent Ngo Dinh Diem of South Vietnam. At a closed-door subcom- mittee hearing yesterday, convicted Watergate bur- glar James J. McCord Jr. confirmed that he wrote five letters to the CIA be- tween July 1972 and Janu- ary 1973, warning officials that an effort was underway to have the agency take the rap for the Watergate af- fair. One of the letters was to then-director Richard Helms and the others were to Paul Gaynor, a CIA offi- cial with whom McCord was acquainted. According to Nedzi, the letters said that Gerald Alch, McCord's attorney at the time, had urged- him to implicate the CIA in the Watergate break-in. Alch has denied this. - McCORD SAID the letters were designed to "alert'' the CIA "that a major effort was being undertaken to lay the Watergate affair off on the CIA." He said that he still felt "loyalty" and "respect" for the CIA because of the years he worked for the agency. If ? the CIA were blamed for the Watergate mess, McCord told report- ers, "I felt it would take years to recover." McCord also said his ac- count of the Watergate scandal, entitled "Water- gate Sanctions," will be published in August. He said he hasn't "deliberately withheld" any information so that it could be revealed first in the book. Nedzi said that the sub- committee, which is explor- ing CIA involvement in domestic affairs, will hear testimony next week from Alch and former White House aide Charles Colson, in addition to Hunt. THE EVENING STAR and DAILY NEWS Washington? D. C., Saturday, Juno 23, 1973 -_ 4 ? (0, wit 44 ? .1.4if.L'*61 #4.) ti Approve petsirfrACILRIp8E-00499 000200010002-2 OVER WATERGATE Indicate Officials Doubt Inquiry Concerned National Security By SEYMOUR M. HERSH ? specim to The New Walt Thnea WASHINGTON, June 3?The Federal Bureau of Investigation, the Central Intelligence Agency and high White House officials viewed the investigation in the weeks after the Watergate bug- ging in June, 1972, as a poten- tial political bombshell and not as a legitimate matter of na- tional security, according to a series of high-level C.I.A. mem- orandums. The memorandums were sub- mitted last month to a Senate subcommittee by Lieut. Gen. Vernon A. Walters, deputy di- rector of the C.I.A., and James B. Schlesinger, Director of Cen-, tral Intelligence. '- According to the document, President Nixon's top White House aides repeatedly warned that the on-going F.B.I. investi- gation into the Watergate epi- sode could lead to high political figures. Copies of the documents, whose contents had not previ- ously been disclosed, were examined and transcribed by The New York Times. Nixon Order to F.B.I. President Nixon, in his 4,000- word statement on May 22 about the Watergate affair, said that he had forbidden the F.B.I. to Interfere either with on-going covert C.I.A. opera- tions or with matters of na- tional security that had been handled by a special investiga- tions unit set up in 1971 to in- vestigate the publication of tho Pentagon papers on the war in ! Vietnam and other matters. The President, without fully explaining the circumstances, said In his statement that "ela- r ments of the early post-Water- gate reports led me to suspect, - incorrectly that the C.I.A. hfid Ap pro eh RekroFkftlease Mai %VI n he had requested his two chief h aides, H. R. Haldeman and John D. Ehrlichman, "to insure that the F.B.I. would not carry its investigation into areas that might compromise these covert national seCurity areas or those of the C.I.A.", End to Inquiry Sought Subsequent testimony last month before a Senate Appro- priations Subcommittee on In- telligence, headed by Senator John L. McClellan, Democrat of Arkansas, brought allegations that Mr. ? Haldeman and Mr. Ehrlichman had urged General Walters, to seek a halt to the F.B.I. investigation of a Mex- ican money-laundering opera- tion that had provided more than ,..$I00,000 in operating funds for the Watergate break- in team. ' The nine Walters memoran- dums and one submitted by Mr. Schlesinger also provided these disclosures: (IJohn W. Dean 3d, the for- mer White House counsel, ex- pressed the belief on June 26 that Bernard L. Barker, a meat- ber of the Watergate team, "had been involved in a clan- destine .entry into the Chilean Embassy." There has been no official confirmation that the White 'House, the Committee for the Re-election of the Pres- ident or the Watergate con- spirators had any connection with a May, 1972, break-in at the Chilean Embassy. (IL. Patrick Gray 3d, then acting F.B.I. director, had been urged by some high level offi- cials to force Harold H. Titus Jr., the United States Attorney for the District of Columbia, to stop his attempts to subpoena the financial records of the Re- publican re-election committee as 'part of the on-going investi- 6.001At441313044t0499R000200010002-2 Watergate team. General Wal.? Continued on Page 25, Column I Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 ;Memos of C.I.A. Disclose Political Fears , Continued From Page 1, Col, 8 ters quoted Mr. Gray as say- "He:could not [stop the Subpoena]. Whoever wanted this done should talk to the 'Attorney General and see if jthere was any legal way to do this. He [Mr. Gray] could not." I Dean telephoned Mr. Schlesinger at the C.I.A. on Web. 9, 1973, to seek advice pbout a pending Senate For- pign Relations Committee inves- tigation into the International Telephone and Telegraph, Cor- poration in connection with r`th Chilean problem." Mr. pchlesigner quoted Mr. Dean as saying that "this investigation could be rather explosive." Similar concern was expressed by Mr. Dean about the Foerign pelations Committee's interest In the Chilean Embassy bur- glary. k 41Richard Helms, then the Director of Central Intelligence, told a meeting of tap White j House aides on June 23 that 1 he had told Mr. Gray by tele- phone the day before that the C.I.A. had nothing to do with the manipulation or handling of 1 cash inside Mexico. General Walters quoted Mr. Helms as flatly declaring: "None of the suspects [in the Watergate break-in] were working for it nor had worked for the agency in the last two years." The general further quoted Mr. Helms as saying that "he had told Gray that none of his investigations was touching any covert projects of the agency, current or ongoing." Mr. Halde- man then replied, according to , the Walters memorandum that A, the geperal "could tell %)Gray provided a strikingly (pfferent that I had talked to the White House and suggested that the investigation not be pushed further." General Walters did as requested, according to his own memorandums. The White House refused to amplify President Nixon's May 22 statement. In statements issued after ap- pearances before the Senate Ap- propriations subcommittee, both Mr. Haiderman and Mr. Ehrlich- man have denied accusations that they acted improperly. The former White House aides sug- gested that anay wrongdoing had been initiated by Mr. Dean. Without mentioning the dis- claimer of any C.I.A. involve- ment that was provided by Mr. Helms last June, Mr. Haldennan declares in a statement issued Thursday that the White House request for a review of the F.B.I. investigation "was done with no intent or desire to impede or to cover up any aspect of the Watergate investigation itself." Any such activities, he said, were taken without his knowl- edge. Mr. Ehrlichman, in his state- ment, quoted General Walters as being unable to provide as- surances to the White House about the possible infringement on C.I.A. activities that would result from an extensive F.B.I. inquiry into the Mexican money trafficking Mr. Ehrlieihman also quoted Mr. Nixon as declaring, in July, 1972, after receiving further assurances that no C.I.A. activities would be com- promised, that he still "feared" the harmful effects of the F.B.I. Investigation. , The Walters memorandums image of those first meetings in late June about the on-going F.B.I. investigation. The gen- eral quoted Mr. Haldeman as saying on June 23 that the "whole affair was getting em- barrassing and it was the Presi- dent's wish that Walters call on the acting director [of the F.13.I.] and suggest to him that, since the five [Watergate] sus- pects had been arrested, this should be sufficient and that it was not advantageous to have the inquiry pushed." General Waiters quoted Mr. Gray as declaring in a subse- quent meeting on the same day that "this was a most awkward matter to come up during an election year and he would see what he could do." Three days later, according to the general's memorandums, he met privately with Mr. Dean ? after first getting approval from Mr. Ehrlichman ? and was told by Mr. Dean that 'some of the accused were get- ting scared and 'wobbling'.' At another meeting on June 28, Mr. Dean was quoted by General Walters as declaring that "the problem was how to stop' the F.B.I. investigation be- yond the five suspects ... Dean then asked hopefully Whether I could do anything or had any suggestions." The general's reply, as he candidly wrote in his memo- randum, was "that the affair already had a strong Cuban flavor" and that the Cubans had "a plausible motive for at- tempting this amateurish job which any skilled technician would deplore. This might be coStly but it would be plaus- 'ble.". `)? Approved For Release 2001/09/0'4 : CIAADP8,4-00499R000200010002-2 Approved For Re!eau, Justice to Aboi..!Ish. Inteilio.ence- Panel ? By Sanford J. Ungar Washington Post Staff Writer , The Justice Department is taking steps to abolish the Intelligence Evaluation Com- ? mittee, a secret domestic in- telligence unit established in December, 1970, which is now under investigation by the Senate select committee looking into the Watergate affair. Although the IEC was headquartered in the Justice Department, i t s existence was unknown to many top officials at Justice until President Nixon referred to it in a public statement on Watergate last week. As described by Mr. Nixon, the IEC membership included representatives of the White House, Central Intelligence Agency, Fed- eral Bureau of Investiga- tion, National Security Agency, Secret Service and 1,-ipastmenis or .110-ire, He said it, was established ! to "help remedy" the situp. tion created when the late Edgar Hoover, then director of the FBI, broke off liaison with all agencies except the White House. Justice DeOrittiliOnt sources said yesterday that . Assistant, Attorney Genel'at Henry E. Petersen, chief of the department's Criminal learned of the I-EC's existence?through in- quiries from the Senate committee---only a few days before the President's state- ment. So carefully was it, con - (paled that on iii then, Pet- ersen was apparently una- ware that he had in hen i ted the 1EC's small staff in late March, when Attorney Gen- eral Richard G. Kleindienst abolished the department's Internal Security Division and transferred its responsi- bilities to a new !section of the Criminal Division. The sources said that Pet- ersen immediately called for copies of the IEC's class f iied reports, on such subjects as foreign influence in the peace movement, and found them "worthless." On checking with the IEC's member agencies, Pet- ersen discovered that "they didn't care" whether the committee continued to ex- ist, the sources added. As a result, Petersen is drafting an order disman- tling the IEC and assigning its employees to other jobs. The sources said, how- ever, that Petersen has de- cided to retain "on a standby basis" the Inter-Di- visional Information Unit (IDIU), a related group orig- inally established by Ram- sey Clark, President John- son's last Attorney General, and kept by the Nixon ad- ministralion, to monitor the potential for domestic civil disturbances. There was apparently con- siderable overlap between the two intelligence units, and sources close to the Senate investigation say that the IDIU may have been used to help conceal the INC. The IEC originally drew the attention- of Senate in- vestigators when they learned that convicted Watergate conspirator James W. McCord Jr. had received copies of IEC re- ports while working as secu- rity director for the Com- mittee for the Re-election of the President. Sen. Lowell P. Weicker Jr. (R-Conn.), t h e Watergate committee member who has pressed the investigation of the TEC, said yesterday that the reports apparently went only to Mr. Nixon's re-elec- tion committee, under a spe- cial arrangement, and were not distributed on a biparti- san basis. Several sources in the Justice Department and on Capitol Hill yesterday con- firmed a department spokes- 9 RDP84-00499R00049010002-2 man's insistence that the IEC "has never'been an op- erational unit," but merelY collated data collected by its Member agencies. The group collected no informa- tion of its own, they said. The former FBI agent who now heads the PEG, Bernard A. Wells Jr., de- clined to discuss its func- tions with a reporter, but other Justice Department officials, said that the INC concentrated on "writing pa- pers" at the sPecific request of the White House and other govet'nment agencies. It was created in Decem- ber, 1970, they said, at the suggestion of close presiden- tial aides, including former chief White House domestic adviser John D. Ehrlichman, ? and brought into the Inter- 1 nal Security Division while Robert C. Mardian was as- sistant attorney general in ! charge there. (Mardian left Justice last year to join the Nixon cam- paign and has since re- turned to his family's con- struction business in Phoe- nix. He has been questioned by the Watergate grand jury here and will meet privately with Senate investigators Friday.) The INC is housed On the sixth floor of the Federal Triangle Building on 9th Street NW under strict secu- rity arrangements. Acedrding to the Justice Department sources, the INC sought, among other things, to predictthe size of public demonstrations and to measure their potential for violence?as part of the development of the govern- ment's response to them But on some occasions, they 'added, the INC may have dabbled in foreign in- telligence matters and may have contributed informa- tion for use in the Justice Department's prosecution of cases with political over- tones, such as the Pentagon Papers trial of paniel Ells- berg and Anthony J. Russo ? Jr. Senate sources suggested that the JEC grew out of an intense concern for national security on the part of some Nixon administration offi- cials and that its reports could have been used to de- velop and justify the work of the White House "plumbers," who included convicted Watergate con- spirators E. Howard Hunt Jr. and G. Gordon Liddy. Welcher said he is puzzled -about why, if the IEC's work was as simple as has been described, it was considered necessary to "camouflage" the unit. / Approved Rer-Rele2QP 2nd/09/04 : CIA-RDP84-00499R000200010002-2 HSI-IC- NEW XORK DAILY NEWS Approved For Release(:)01/(??)10AfliepP84-00499R000200010002-2 By JEFFREY ANTEVI Washington, May 24 (NEws Bureau)?Central Intelligence. Agency officials did not tell Director James R. Schlesinger until two days ago that Watergate conspirator James W. McCord Jr. had written a series of letters over the last 10 months warning of efforts to blame the CIA for the 1972 campaign scandal, ? chairman Lucien N. Nedzi of the House intelligence subcommit- tee disclosed today. Emerging from a closed meeting with three CIA employes, Nedzi refused to characterize the delay as "a coverup." He told reporters that the Watergate affair had done "serious damage" - to the CIA and 'that some "changes in personnel" should be made at the agency. - Nedzi would not describe the contents of the letters?one signed--"Jim" and the others unsigned?which 'McCord wrote to former CIA Director Richard M. Helms and Paul Gaynor, a security man at the agency, between last July and January of this year. Leffprs Called 'Disjointed" But Rep. William G. Bray (R-Ind.), another member of the subcommittee, confirmed that McCord, a retired CIA employe, wrote the letters to alert Ins former colleagues of an attempt to shift the blame for Watergate to the agency. Bray said the letters did not specify who was responsible for this effort. Bray said the letters were "disjointed" and apparently were "written by a confused Person." He said McCord wrote them "to protect himself" in the spreading scandal and because "he had a great dedication to the CIA," where he had been employed in the ,security division for 19 years. Gaynor,. CIA Chief of Security Howard Osborn, and William Breaux, the . agency's inspector general, testified before Nedzi's panel for more than three hours. Nedzi was asked later if the delay in showing the letters to Schlesinger, who succeeded Helms as director early in February, was a result of a deliberate coverup by CIA employes. "Every-- body denies that there was a coverup," Nedzi replied. Some CIA Men 'Forgot' He said some of those asked about the matter replied "with the familiar phrase, `I forgot,'" while others said they had not acted because they assumed someone else already had done so. - The letters surfaced, Nedzi ,said, as part of an intensive re- view ordered by Schlesinger following recent disclosures that top White House aides made a -series of attempts to implicate the CIA in the Watergate affair. . As a result of these disclosures, Nedzi said, "serious damage has been done to the agency." The conduct of individualemploye does not' seem to warrant "outright dismissals," he added, but per- sonnel changes are needed. {HS/HC.. irie Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 IHS/HC- Approved For Release Rik3sfibiliF0V.ICRIADP84-00499R000200010002-2 25 MAY 1973 n ys Dern ped CIA, Hu By JEREMIAH O'LEARY Star-News Staff Writer When E. Howard Hunt demanded that the CIA transfer a secretary sta- tioned in Paris to work for him in the United States, that was the last straw as. far as the agency was con- cerned. In an interview, Gen. -Robert E. Cushman Jr., now commandant of the Marine Corps but deputy director of the CIA from 1969 through 1971, said it was the burgeoning of Hunt's demands, not any suspicion of illegality, that prompted the CIA to sever Connections. Cushman first got a call from presidential aide John D. Ehrlichman on July 7, 1971 identifying Hunt as a White House security consultant and asking that the CIA give Hunt a hand. "Hunt came to see me on July 22, the only time I ever saw him and talked for about half an hour," Cushman recalled. His impression was that Hunt was a "little pushy." But, said Cushman, "He said he had a one-time inter- view to conduct and need- ed some disguise materi- als. There was no mention of his mission and I could not get any details about it from him," "BECAUSE of his en- dorsement from Ehrlich- man, our technical serv- ices division, on my in- structions, fitted him with a wig, a voice altering device something like a kazoo and some manufac- tured identification cards, Cushman said." "With the wisdom of hindsight, you wonder why he went to all the trouble of getting from the CIA things he could have got- ten anywhere in downtown Washington in a shop ... If I had known what his ulti- mate mission was, he would never have gotten in the front door." Cushman said CIA tech- nicians became suspicious in August 1971, when Hunt kept coming back for more and more help. They did not suspect Hunt was in- volved in an illegal domes- tic burglary, only that he was going far beyond the original, one-shot opera- tion he had described. "First he wanted a cam- era and a tape recorder," Cushman said. "Then he asked for an office and a telephone monitoring serv- ice and finally for a partic- ular secretary. Even then we might have given him secretarial help but we weren't about to transfer a secretary from France to the United States. "ONCE, he brought a man around with him, a ;man who turned out to be G. Gordon Liddy, but that name meant nothing to us then." ns t Link Cushman said the grow- ing demands of Hunt were too much. On August 27, Cushman called Ehrlichman and told him he questioned Hunt's judgement and was breaking connections with him. He said Ehrlichman did not argue about the CIA decision but said he would restrain Hunt. A week later the office of Daniel Ellsberg's psy- chiatrist in Los Angeles was broken into by Hunt and others of the Water- gate burglary gang. Cush- man said the did not learn of Hunt's use of the CIA disguise material in the ? Los Angeles burglary until three weeks ago. Cushman indicated no guilt complex about being conned by Hunt and Ehr- lichman. "I felt I had got- ten a legal order and there was no onus of scandal attached to .Ehrlichman in the sunnner of 1971. That was a year before the Watergate burglary," he said. His main concern was that even his peripheral role in the Watergate might disillusion or be- smirch the Marine Corps, but he is now reassured that his Leathernecks have not been humiliated or have not lost faith in "I'm a little bloody but . unbowed," Cushman said. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Release 20d 0002-2 -"" 12 MAY 1973 Ap The C/A entangled Washington, DC The Central Intelligence Agency has never been totally uninvolved in domestic affairs. Not many years ago it was financing American student bodies. Earlier this year it was revealed to be training local police forces. Still, when Senator William Proxmire uttered a warning on April loth against the CIA "engaging in Watergate-type activity to downgrade our democratic system," he can hardly have realised how scon his fear would take on substance. What has come out since concerns the co- operation which the CIA provided for the men who burgled the office of Dr Ellsberg's psychiatrist in 197t. Testimony by. Mr Howard Hunt, one of the burglars, was read on May 4th to the Los Angeles court where the Pentagon papers trial is being con- ducted. Mr Hunt said that the CIA had provided cameras, disguises and false papers for the burglary. He also described meeting CIA agents in " safe houses " in Washington and being given a " sterile "?that is, unlisted and unbilled---telephone number to maintain contact for further assistance. The burglary itself failed to produce any- thing of value to the Whitc House plumbers. A psychiatric profile construc- ted for them by the CIA's own psychia- tric unit proved, according to Mr Krogh's affidavit, to be of no use either. Who authorised all this ? On the White House side Mr Egil Krogh has admitted that he gave approval to the burglary mission, believing that such a thing fell within his competence. Had not the President personally told him to get on with the investigation, and in the presence of Mr Ehrlichman ? An affidavit by Mr Krogh also states that Mr Ehrlichman gave approval for " covert activity "?a vague phrase--to look into Dr Ellsberg's psychiatrist, Dr Fielding. The special counsel to the President, Mr Charles Colson, furnished the expense money but did not ask what it was for. Thus, when preparations for the expedition to Los Angeles reached a point where technical help was needed, it was with every assurance of authori- tative backing that first Mr Hunt and then Mr Krogh turned to. the Central Intelligence Agency for help. But their requests did not do the trick, and a personal word on the telephone was needed from Mr Ehrlichman to General Robert Cushman, then the deputy direc- tor of the agency and now Comman- dant of the Marine Corps, a man who enjoys President Nixon's patronage and to some extent his friendship. This telephone call is not in Mr Krogh's affidavit, but has been reported from other sources. Mr Ehrlichman may still be able to claim that when he asked for co-operation he was not thinking of burglary. At all events, as the agency has con- firmed, General Cushman met Mr hunt on July 22, 1971, and authorised him to be given what assistance he wanted. Five weeks later, when it dawned on the CIA that it was abetting " a domes- tic clandestine operation," the help was discontinued. This may account for the odd fact that when the plumbers returned the agency's camera with some exposed film inadvertently left in it, the CIA sent the film not to the White House but to the Justice Department. The CIA realised, in fact, that it had gone beyond the limits of what it is supposed to do. The 1947 act setting up the CIA expressly states that the agency "shall have no police, subpoena, or law enforcement power or internal security functions." Counter-intelligence and counter-. espionage within the United States be- long to the Federal Bureau of Investi- gation. It is true that the CIA is authorised to protect " intelligence sources and methods from unauthorised disclosure.". But this has always been understood to be confined to protecting the foreign intelligence activities of the United States. The fact that the Pentagon papers are about foreign policy and that foreign powers found them interesting does not make them a foreign intelligence matter in the sense intended by the act : or so, evi- dently, the CIA itself concluded. General Cushman and his former chief, Mr Richard Helms, Will both have questions to answer. The man who had to carry the immediate burden, Mr James Schlesinger, was chosen on Thursday by President Nixon as his new Secretary of Defence. Before the task of ascertaining the extent of the agency's .involvement in the White house scandals fell on him, Mr Schlesinger was already engaged in a reorganisation of the agency which involves 'fairly extensive staff cuts, for reasons arising out of the debate about the proper functions of the intelligence agencies which has been long in pro- gress. The reorganisation is not made any easier by two changes of director within a few weeks. If the. CIA cannot clean its own house, Congress is bracing itself to try to ?dO the job for it. Three subcommittees in the I louse and the Senate which have in the past been lax about their duties of overseeing the CIA have announced hearings, and Senator McClellan's sub- committee on intelligence operations made a quick start by summoning Mr Schlesinger on Wednesday. After the hearing, which was closed, Mr Schlesinger said he was stiffening the agency's regulations to make sure that what had happened did not happen again. Now he has a new job. se 2001/09/04: CIA-RDP84-00499R000200010002-2 WASIIINC.T.017 ST2iR Approved For Releup 2001i10pio4MAY CIATRDP84-00499R000.200010002-2 BY GEORGE SHERMAN and FRED BARNES Star-News Staff Writers Henry A. Kissinger has acknowledged that, he knew his aides were being electronically moni- tored by FBI agents between 1969 and 1971 and that -he actually read some summaries of their wiretapped telephone conversations. But Kissinger, who is national security adviser to President Nixon, denied in an interview yes- terday that the surveillance was begun at his order. "No, I did not institute the wiretaps," he said. Kissinger confirmed, hoviever, that he met with FBI director J. Edgar Hoover in the spring of 1969 and discussed leaks of national security information, among other things. IT WAS THIS meeting at FBI headquarters, declared acting FBI Director William Ruckel- shaus at a press conference yesterday, that prompted the bureau to 'place wiretaps on four newsmen and 13 government officials, including at least two aides to Kissinger. There were these other developments related to the wiretapping-leaks episode: 0 Ruckelshaus disclosed that the official FBI logs of the wiretapped conversations between 1969 and 1971, missing from the bureau for-two years, were found Saturday evening in the White House safe of John Ehrlichman, resigned presi- dential aide. The acting FBI chief said that he and an FBI agent had to "arm-wrestle" the documents away from Secret Service agents in order to carry them away from the White House and return them to FBI hies. (Jack Warner, Secret Service spokesman, said Ruckelshans' account of the- "arirewrestlina" inci- dent. "is absolutely false," United Press International retiorted. Warner said the acting FBI director and an FBI agent were in an Ex- ecutive Office Building of- fice "for a total 91 four minutes and we gasi'6Rimved the files they requested," UPI reported.) 0 Sources revealed that one of the newsmen put underelectronic surveil- lance was Joseph Kraft, syndicated columnist who sometimes writes about national security matters. ? Earlier published re- ports had identified three of the tapped newsmen as William Beecher and Hed- rick Smith of The New York Times and Henry Brandon of the Sunday Times of London. 0 Ruckelshaus confirmed that -President Nixon sent a personal letter to Hoover in 1971 urging the FBI chief to aid the White House in tracking down security leaks. Hoover responded with a letter to the effect that he would provide the White House with whatever rele- vant information the FBI uncovered, Ruckelshaus said. In the interview, Kissin- ger said that his confer- ence with Hoover stemmett from his White House role as protector of "the most sensitive infor- mation in the govern- ment." "I DEAL ONLY with established agencies through their directors, through established proce- ? (hires inherited from pre- vious administrations," Kissinger said. "I did not determine the methods of their investigations." According to sources close to Kissinger, he and Hoover discussed not only security leaks bothering the White House, but also the liinds of intelligence /09/04: CIMVP6111:11149FVvh2boo fur., anon- al Security Council, which Kissinger heads. Summaries of the wire- tapped conversations ? at least some from taps on private residences ? were Passed on to Kissinger in 1969 and 1970, the sources said. He read them and sent-. the summaries along to H. R. Haldeman, then the chief of the White House staff, for the President to read, the sources said. "SOMETIME in 1970" Kissinger stopped receiv- ing the summaries be- cause he determined the information in them did not pertain to national security, according to the sources close to him. For this- reason, the- ? sources said, Kissinger is unsure how many of the 13 officials wiretapped were actually on his staff. But he read the summaries of private conversations of at least Morton Halperin and one other of his aides. Halperin was a key Kis- singer aide until 1971. He emerged into prominence again this year as a mem- ber of the defense team at the trial of Daniel Ells- berg. The trial judge dis- missed all charges against Ellsberg last week in connection with the re- lease of the top-secret Pentagon Papers. The sources close to Kissinger said they be- lieve, though are not total- ly sure, that three in- stances of press reports in 1969 originally caused alarm in the White House over security leaks. ONE WAS a story on National Security Council discussions on how to han- dle the shooting down of the ED 121 electronics spy plane over North Korea on April 15, 1969. Another involved disclo- 10002-2 continued 2 sure M the pres4A3fparC /aF Na- tional Security Council paper on the Middle East. The third concerned the President's planning for the first withdrawals of troops from South Vietnam. - Kissinger emphasized in the interview that he knew of no illegal procedure used by those investigat- ing security lens!:. M his instruction, . Kissinger said, his office cooperated, with the FBI in the wire- taps. Ruckelshaus stressed at his press briefing that the wiretaps were fully legal. It wasn't until June 1972, he noted, that the Supreme Court Court outlawed the ? electronic surveillance of "domestic subversives" without a federal judge's prior consent. WHEN KISSINGER took over his White House job, sources said, he inher- ited an FBI man, A. Rus- sell Ash, who was respon- sible for security. Ash left Kissinger's staff last month, sources said. - According to other Sources, Ash was the lisi- son man for the FBI in 1969 and would contact the Kissinger office to find out which members of his staff had access to pertinent files when a security lead was discovered. While President Nixon also sent copies of the summaries of the bugged conversations, Ruckel- shaus said he is unsure if the President read any of them. Ruskelshaus said the official FBI logs of the wiretapped talks were removed from the bureau? in the summer of 1971 by William C. Sullivan, than an aide to Hoover, and given to Asst. Atty. Gen. Robert Mardian for trans- fer to the White House. "According to Mr. Mardian," said Ruckel- shaus, "the recommenda- tion was made on the claim by Mr. Sullivan that . Mr. Hoover might use the records in some manner against the attorney gen- eral or the President, Mr. Sullivna does not affirm Mr. Bilardian's claim." . Or Release 2001/09/04: CIA-RDP844099R000200010002-2 SUI.,LIVNA was quoted today by. Jock Nelson of the Los Agneles Times as saying that the logs were hept from Hoover 'because the FBI chief was "not of found mind." Sullivan said he turned them over to Mardian because Hoover couldn't be trusted to keep the ma- tierals in the logs confi- dential, according to Nel- son. FBI records revealed that when the logs were discovered to be missing, Hoover was told by then Atty. Gen. John N. Mitch- ell that the logs had been destoryed. "It should be noted that Mr. Mitchell has denied making such a- statement to Mr. Hoover," Ruckel- shaus said. "This conflict cannot be resolved be- cause of Mr. Hoover's death. Mr. Mitchell, how- ever, confirmed that the records were moved to the White House. EHRLICHMAN told news- men yesterday that he knew the logs were in his safe. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 HS/HC- F4-49 pri YORK TIMS Approved For Rele 2110r ?/M4 1:9& w -RDP84-00499R0002410010002-2 Ruckelshaus Statement on Wiretaps Special to The New York Times WASHINGTON, May 14? Following is a statement of William D. Ruckelshaus, act- ing director of the Federal Bureau of Investigation on the results of an inquiry 'about missing records relat- ing to electronic surveillance .on certain individuals: Shortly after assuming this job, my attention was drawn to several newspaper and pe- riodical accounts of elec- tronic surveillances ?wire- taps?having been placed on telephones of Government employes and newsmen in an effort to stem the leaks of information related to highly sensitive foreign policy is- sues. Upon inquiry; I was in- formed by F.B.I. employes that these surveillances had been. performed and that the records relating to them were missing from the F.B.I. files. Also the question had been raised in the Ellsberg trial whether information from these alleged taps had been used by the prosecution in any way and thus tainted the evidence. As a result of this informa- tion, I immediately ordered an investigation into the facts surrounding the taps and the missing records. This investi- gation was started Friday, May 4, 1973, and was con- ducted undel? my personal supervision by highly skilled F.B.I. personnel at headquar- ters. Forty-two separate in- terviews were conducted, all hy headquarters personnel, and included travel to Phoe- nix, Ariz.; Tampa, Fla.; Sa- vannah, Ga.; New York City, and Stamford, Conn. The investigation revealed that from May, 1969, to Feb- ruary, 1971, based on consul- tations between the director of the F.B.I. and the White House, certain wiretaps were instituted in an effort to pin- point responsibility for leaks of highly sensitive and clas- sified information, which, in the opinion of those charged with conducting our foreign policy, were compronnsing the nation's effectiveness in negotiations and other deal- ings with foreign powers. Length of Taps Varied There was a total of 17 wiretaps placed for this pur- pose. Four were placed on newsmen as the potential re- cipients of leaks and 13 on Government employes as the P?A1509-646`dt6P4iWie were on for varying lengths of time during the period in question; two for as little as 30 days and one for as long as 21 months. These requests were han- dled in the same way as other requests involving na- tional security for a number of years and in prior Admin- istrations. When a Govern- ment agency or the White House requests surveillance, the request is studied.by the senior officials of the F.B.I., and if the director approves, authority is then requested from the Attorney General. If he approves, as was done in this case, the surveillance commences, summaries are prepared from the logs, which are transmitted to the interested agency, or as in this case, the White House. Because of the sensitivity of these particular surveil- lances, the records were very closely held; first in the di- rector's office and then on the director's orders under the custody of Mr. W. C. Sullivan, who was an assist- ant to the director. Transterral Recommended The investigation indicates that sometime in the sum- mer of 1971, after the taps were all taken off, Mr. Sul- livan contacted Mr. Robert Mardian; who was then As- sistant Attorney General in charge of the Internal Secu- rity Division, and informed him of the nature of these records and recommended that they be transferred to the White House. According to Mr. Mardian, the recommendation was made on the claim by Mr. Sullivan that Mr. [J. Edgar] Hoover might use the records in some manner against the Attorney General of the President. Mr. Sullivan does not affirm .Mr. Mardian's claim. There is certainly no proof that Mr. Hoover had such intention hut the charge had its desired effect. Ac- cording to Mr.. Mardian, he informed Mr. [John] Mitchell [then Attorney General], who in turn inforrned the While House. The records were taken from the files by Mr. Sullivan, who ordered them given to Mr. Mardian, who deliever them to the White House. When the F.B.I. discovered Upon Mr. Sullivan's retire- ment in the fall of 1971, it commenced an inquiry which ended when Mr. Hoover was informed by Dr. Mitchell that the records had been destroyed. It should be noted that Mr. Mitchell has denied making such a statement to Mr. Hoover. This conflict cannot be resolved because of Mr. Hoover's death. Mr. Mitchell, however, confirmed that therecords were moved to the White House. Records Are Located In any event, the F.B.I. ac- cepted the premise that the records had been destroyed, and when I assumed my pre- ent position, I also had no reason to believe that the records were still intact. It was not until last Thursday night that our investigation revealed, during an interview with Mr. Mardian in Phoe- nix, that the records possibly still existed and might be in .the White House. The next day the records were located in the White House having been filed in a safe in Mr. John D. Ehrlich- man's outer office. Unfortunately, the records were not located in time to respond to Judge [William Matthew] Byrne's inquiries about the potential taint of evidence in the Ellsberg trial. The interceptions of Ells- berg's conversations all oc- curred when he was either a guest of Morton Halperin, [former employe of the] Na- tional Security Council, or conversing with him. It was one of these conversations of Mr. Ellsberg which I had in- formed the judge on Wednes- day, May 9, 1973, had been remembered by one of our employes, who had monitored the tape. Of course, whether the location of the records would have had any effect on the judge's decision is not for me to say. On Saturday, an F.B.I. agent and I Went to the White House, identified and retrieved the records. They now rest in the F.B.I. files. The investigation was con- ducted with skill, speed and effectiveness by the F.B.I. and resulted in the full re- trieval of the records. I be- lieve it is in the public in- trest to reveal these facts so that this story can be put in ibt1116tr614 WA-F084-08raglidolikik51 0002-2 WASHINGTON POST Approved For Releaz 2o1gog44 :96k-RDP84-00499R000240010002-2 issin er's NSC Staff Caught in By Murrey Marder Washington Post Staff Writer Henry A. Kissinger's proud National Security Council staff became, en- meshed in the use of wire- taps as a test of its own loyalty, informed sources indicated yesterday. Until the official confir- mation by Acting FBI Di- rector William D. Bucket- shaus that wiretaps were used on the NSC staff and on telephones of four newsmen, Kissinger was relatively free of taint in the Watergate syndrome. Kissinger drew an em- phatic distinction yesterday between the decision to use wiretaps, and his obligation for "safeguarding classified information." He carried the security problem to the FBI. Kissinger agreed, but he insisted that the meth- ods used to cope with it were not his "initiative." The extent to which Kiss- inger, nevertheless, may be tainted for acquiescence in the wiretapping process caused him evident dismay yesterday, his brief, taut, public comment showed. According t o insiders, what has been revealed so far is only a portion of a subtle process of internal and external loyalty test- ing that has operated in the Nixon administration. In this process, the will- ingness o f department chiefs to consent to the use of wiretaps and lie detectors on their employees report- edly became, in effect, a "purity" gauge o fits own. Some department chiefs agreed to the use of tele- phone taps, but balked at subjecting their employees to lie detectors. Others ap- parently agreed to both_ HS/HC-Ard? practices in their depart-, knowledging the existence of ments. Kissinger reportedly the practice, however, has Web refused to permit poly- itself been considered an graphs, or lie detectors, on act of disloyalty. Kissinger's NSC staff is News Analysis described as having been especially exposed to intern- his National Security Conn- al suspicion from super- eil staff, while accepting the loyalists in the White House wiretaps. since the outset of the The implication is left Nixon administration. that a refusal of a. depart- Many of the original staff ment chief to agree to members recruited by Kiss- either practice could have inger, including Morton put in jeopardy his own Halperin, were holdovers loyalty sating inside the from other agencies in the administration. Kennedy - Johnson - adrain- No of fi ci al yesterday istrations. To key officials would discuss openly this such as john Ehrliehman subtle, double use of wire- and II, R. Haldeman, these taps and lie detectors. -staffers were from "enemy" Bureaucratic veterans often ranks. have discussed among them- As a result, insiders now selves this double-edged say, when news leaks on game, sometimes described sensitive international is- as "putting the fear of God sues first appeared in the into the , bureaucracy." Ac- Nixon administration (as they do in every administra- for the double 'purpose: not Lion), the loyalty of Kissin- just to block the leakage of ger's staff faced special chal- information, but to obtair lenge from the Haldeman- proof of the loyalty of his Ehrlichman branch of the staff and to help defend his White House. entire operation. At that initial point in Kissinger's staff is said to May, 1969, the primary con- have come out "clean" of cern is said to have been suspicion of any security disloyalty in the wiretap leaks on administration stra- surveillance of their tele. tegy about Vietnam, the phone calls. It is also claimed Middle East and Korean pol- that neither Kissinger nor icy. Later, the dominant his staff was responsible in alarm about leaks centered any way for the wiretaps on on the strategic arms limi- newsmen's telephones. So tation talks (SALT) with the far there is no independent Soviet Union, means for verifying any of Neither Kissinger nor any- these specifies, one else in the White House The public record shows would discuss yesterday ex- that subsequently, .on Sept, actly what happened intern- 3, 1971, Secretary of State ally. But Kissinger is pot.- William P. Rogers acknowl trayed as having gone to edged and defended the use the late FBI Director J. Ed- of lie detectors to check on gar Hoover to request help a news leak in a SALT story in safeguarding information published June 23, 1971, Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 miSHINGTO:21 POST Approved For Re!email/0%1/994413 CIA-RDP84-00499R000240010002-2 V,stGIP Undercover ers ti#n Ori inat 1969 By Carl Bernstein and Bob Woodward Wo.shinton Post Staff Writers The Watergate bugging and the break-in into the office of Daniel Ellsberg's psychiatrist were part of an elaborate, continuous campaign of illegal and quasi-legal undercover, okrations conducted by the Nixon administration since 1969, according to highly placed sources in the executive branch. There are more instances of political burglaries, bug- gings, spying and sabotage conducted under White House auspices that have not yet been publicly re\,ealed, accord- ing to the sources. Although the undercover operations became most in- tense during the 1972 presidential campaign, such activi- ties as the Watergate bugging and the break-in in the Ells-berg case, which previously had appeared to be isolated, were regarded in the White House as compo- nents of a continuing program of covert activity, accord- ing to the sources. The clandestine operations, the sources said, were at various times aimed at radical leaders, student demonstra- 'tors, news reporters. Democratic candidates for President and Vice President and the Congress, and Nixon admin- istration aides suspected of leaking information to the press. The sources said that many of the covert activities, although political in purpose, were conducted under the guise of "national security," and that some of the records relating to them are believed to have been destroyed. ,Some of the activities were conducted by the FBI, the ?. Secret Service and special teams working for the White House and Justice Department. according to the sources. Most of the activities were carried out under the direct supervision of members of President Nixon's innermost - circle, among them former White House deputies 11. R. (Bob) Haldeman, -John D. Ehrlichman and John W. Dean III; former Attorney General john N. Mitchell, and former Assistant Attorney General Robert C. Mardian, the sources said. Although most of the clandestine operations are still shrouded in secrecy, they are known to include: White House and Justice De- partment to conduct illegal wiretapping; infiltrate radi- cal organizations for pur- poses of provocation and en- gage in political sabotage. The "vigilante squads" included professional wire- tappers and ex-CIA and ex- EBI agents. One such "vigilante squad," under the supervi- sion of former White House aides E. Howard Hunt Jr.., . and G. Gordon Liddy, con; ducted the , Watergate bug- ging in 1972 and the break-in at the office of Daniel BBs- berg's psychiatrist in 1971. The Watergate grand jury repo nt edly is examining other undercover activities by the squad, including an- other burglary that the team. is suspected of committing. According to one highly placed source in the execu- tive branch, undercover op- - orations by the Hunt-Liddy souad were transferred from the White House to the Committee for the Re-elec- tion for the President under au arrangement worked out by Haldeman, then chief of ? the White House staff, and John N. Mitchell, then :At- torney General. The transfer of the squad .from the White House to the reelection committee in late 1971 and early 1972 was Made to gear up for the up- . ? The use of the Secret Service to obtain information . coming presidential cam- on the private life of at least one Democratic presidential paign in which "dirty candidate in 1972. . tricks," spying and decep- tions represented a basic a The possession of Sep. Thomas Eagleton 's confiden- canmaign strategy. tial health records by Ehrlichman, l'.ormer White House Two persons occupying . domestic affairs chief, several weeks before the in forma-. - high positions in the Nixon tion was leaked to the news media. - : administration have told 0 The use of paid provocateurs to encourage- violence The Washington Post that at antiwar demonstrations early in the first Nixon ad- other "vigilante squads" ministration, and again in the 1972 presidential cam- were established by the paign. White House and Justice. a Undercover political activities against persons re- Department to conduct so- garded as opponents of the Nixon administration con-, t political Water- ductedopera- by "suicide squads" in the Ff;I. The term is a 1-ito'Insse (l'or en g beforel) the bureau euphemism for teams of agents engaged in sensi- gate bugging. Live missions which. if revealed, would be disavowed by . Some recordii relating to the FBI and the White house, the Nixon administration's broad program of covert ac- e The use of paid-for-hire "vigilante squads" by the tivities are believed to have v I i Approved For Release 2001/09/04 : b4a4a ezoin n e- 0 R.410200010002-2 ;bugging arrests last June 17. Other records were ,de- stroyed last month, when it became apparent that some of the activities might come to light in the renewed - grand jury investigation of the -bugging and related matters, according to one ' source. To prevent further disclo- sure of the activities, the sources reported, the White House has promulgated , ,"national security" guide- lines for use in the Water- gate investigation that are . designed, at least in part, to prevent testimony about the undercover operations by those with knowledge of. them. Haldeman and Ehrlich- '- man, the President's two principal deputies until April 30, , when they re- signed, invoked both execu- tive privilege and "national security" considerations in refusing to answer certain questions before the federal grand jury investigating the Watergate and related mat- ters, according to a reliable source. Their actions, the source reported, amounted to a claim that the questions in- volved confidential White House ? business or national security Matters that a-re be- yond the grand jury's pow- er to investigate. Some sources who have previously supplied details on the Watergate scandal to The Washington Post have .recently refused to discuss certain "potentially illegal" activities they say they have knowledge of, on grounds that to do so might violate "national security" regula- tions. . Two sources said that some of the White House documents submitted to the Watergate trial judge by former presidential counsel John Dean provide informa- tion about previously unre- ported covert political activ- ities, conducted under the guise of "national security" by the. Nixon administra- tion. Several sources described continued the political espiona vestl ao020 gAVloveitifit*Reitiiii&2004109/04htrkWie "84E1414%914 sabotage conducted byp e White House special counsel. 1 ? rr? ' President's re-election com- mittee, including the Water- gate bugging, as the logical extension of covert opera- tions established long be- fore by the Nixon adminis- tration. "Watergate was a natural action that came from long- existing circumstances," .one high-level participant in many of the undercover ac- tivities observed. He added: "It grew out of an atmos- phere. This way of life was not new . . . There have . been fairly broad (illegal ..and quasilegal) activities from the beginning of the administration. I didn't know where 'national secu- rity' ended and political espionage started." According to tins source, the activities were aimed at whatever individual or groups the White House per- ceived as a threat at any given moment. "First it was -. radicals," he said, "then -it ? was reporters and leaking White House aides. then the ? Democrats. They all got the same treatment: bugging, in- filtration, burglary, spying, . etcetera." As one example, this - source cited the 1971 FBI in-? ? ..vestigation into the back- ground of CBS News corre- spondent Daniel Schorr. The investigation, . the source said, was personally ordered by Haldeman. At the time that it was a publicly revealed that the correspondent was under in- vestigation, the White House said that Schorr waS being considered for a job in the administration?an . assertion that administra- ton officials have since. con- ceded was untrue. In addition to the use of the FBI tor such intelli- Charles W. Colson has ac- -?? Well before they were knowledged that Colson re- ceived- such information on a?candidate's private life but denied that the data came from the Secret Service. The Secret Service's rote in collecting such informa- tion represents the second - time that agency has been re- ported to have engaged in in- telligence-gathering against political opponents of the White House. . On Nov. 4, The New York Times reported that Nixon campaign aides and the White House iTceived in- formation about confidential meetings. held by . Sen. George McGovern with po- tential financial backers. . Jack Warner, spokesman for the Secret Service, said last week that an investiga- tion last year concluded that there was no evidence to support The Times report. "If you have new informa- tion," Warner said, "let us have it and we will reopen our investigation. This type of activity would be unprec- edented, and if at any time an investigation reveals that a Secret Service agent was identified with this activity, he would be judged unsuita- ble for the Secret Service." Seven investigative sources and Nixon adminis- tration officials have told The Washington Post re- cently that Colson and Haldeman were the prime movers behind the extensive undercover campaign mounted on behalf of Presi- dent Nixon's 1972 re-elec- tion, although other high of- ficials were also involved. Much of that secret cam- paign of spying, sabotage, deception and other "dirty tricks" was designed to help secure the Democratic presi- gence-gathering purposes, dential nomination for Sen. the White House used the McGovern, considered by Secret Service in the 1972 the White House to be Presi- campaign to investigate the dent Nixon's least formida- Private life of at least one ble opponent. Democratic presidential can- One former high official dictate, according to reliable in the Nixon administration sources. said: "It was a campaign The sources reported that that went astray and lost its the Secret Seviee?or per- sense of fair play. Secrecy haps a single agent acting and an obsession with the alone?provided the White covert became part of House with regular reports nearly every action. It all on private activity of the turned to mud. and I'm candidate. sorry to have been a part of In addition to receiving Secret Service reports on As examples of the other such matters, the White secret, but apparently legal, House twice considered tactics employed in the leaking stories to the news Nixon campaign, sources in media about the activity, the the White House, the Corn- sources said. . ? Approved4161' kei4diV-21001(10. 004 leaked to the news media, ? former presidential adviser ?Ehrlichman obtained copies of Sen. Thomas Eagleton's health records. It could not be determined how Ehrlich- man obtained the records, which Eagleton, as Demo? cratic vice presidential can- didate, refused to -supply even to his running mate, Sen, McGovern. According to The Post's sources, Ehrlichman had re- ceived copies of the records which showed that Eagleton . had received electric shock treatment for nervous ex- haustion in 1960, 1964 and 1966. (Former Attorney General ? Ramsey Clark has said that Eagleton's health records were in the FBI files, and reliable sources said that . material from the FBI files was provided to White House and Nixon campaign ? aides during last year's elec- tion campaign by former As- sistant Attorney General Mardian.) ? Fred V. Malek, a former White House aide and depu- ty manager of the Nixon re- election committee, ordered establishment of a network of persons to gather infor- mation in nearly all of 50 states on the campaign of Sen. McGovern. Field 'operatives in the project had a code-word con- ! tact?the name "Viola Smith"?:at the Nixon com- mittee for 'transmitting the information by telephone to a group at Nixon campaign headquarters known as the - "McGovern Watch?' In addi- tion, written reports would be mailed to the Nixon com- mittee on forms marked "confidential" and contain- ing space for details about staff changes, speeches and ?- polls in the McGovern cam- paign. Malek acknowledged he wrote a memorandum on "Intelligence on Future Ap- pearances of McGovern and Shriver" but denied that the memo was intended to set any covert activities into motion. The memo, obtained by The Washington Post., ad- ? vises persons in the field to call "Viola Smith at 202-333- 7220 to advise her of infor- mation that you learn of." DeVan L. Shumviray, a spokesman for the Commit- tee for the Re-election of the President, acknowledg- 440#4409*(40 supply information about -11.000Z2vern's campaign schedule to the Nixon com- mittee. Shumway said that the two reporters, whom he de dined to identify, turned down the request because "most of my friends in the news business are honor- able." He said he approach- ed the reporters under orders ? from Jeb Stuart' Magruder, the former depu- ty Nixon campaign director. ? Colson organized at least 30 groups of Nixon supporters to "attack" net- work _news correspondents through write-in, telephone and telegram campaigns to their local stations, accord- ing to Tom Girard, a former Nixon committee press aide. Girard, now a correspon- dent f o r Westinghouse Broadcasting, Inc., said he quit the Nixon committee last May because he. was "appalled" at Colson's pro- posal, made during an elec. tiorl strategy meeting on May 3, 1972. Republican sources in two states said they actually participated in a phone-in campaign to'com- plain about an- ABC com- mentary that was critical of President Nixon. ? One Democratic presi- dential contender sought legal advice after he estab- lished that members of his family were being investigat- ed and followed. A former official in President Nixon's campaign acknowledged that the Committee for the Re- election of the President was responsible for ordering the surveillance. ? Watergate conspirator Hunt had phony flyers print- ed advertising a free-beer rally for New York City Mayor John Lindsay, a Dem ocra tic presidential candidate _during the Florida primary election last March. The flyers were distributed in the black neighborhoods in Florida. Hunt also had reprints made, of a News- week article critical of Sen, Edmund Muskie's wife. The reprints were distributed in New Hampshire before the primary there. ? Former Assistant Attor- ney General Mardian, who who became political coordi- nator of the Nixon cam- paign, had two spies in the McGovern campaign who reported directly to him, ac- cording to other campaign officials. In addition, two 00010002-2 "continued 2 Approved For Release 2001/09/04 : CIA-RDP84-00499R0002,V010002-2 Nikon campaign aides on loan from the Republican National Committee posed regularly as newsmen to ob- tain routine data about Mc- Govern trips and speeches. ? Ken W. Clawson, dep- uty director of communica- tions for the White House, assisted a reporter in locat- ing the alcoholic brother of one of the Democratic presi- dential candidates ? for a news story that apparently never was published. ? Magruder, the deputy Nixon campaign manager, offered from $5,000 to $10,- 000 to several writers in an attempt to persuade them to assemble a critical book about Sen. McGovern's early life in South Dakota. The project was eventually aban- doned, according to several sources. ? William Rhatican, a former assistant to Colson, said that he is "sure" tele- grams of support were sent by the Nixon committee to the White House after Dr. Henry A. Kissinger's Oct. 26 "peace at hand" speech declaring that the Vietnam war wits virtually over. Rhatican, now an aide to White House press secre- tary Ronald L. Ziegler, said he also understood that Col- son used campaign funds to set up Vietnam veteran groups to support the Presi- dent. The groups had the appearance of being volun- teer organizations. Mel- Ste- vens, a consultant to the Veterans Administration, was lent to Colson to set up a pro-Nixon veterans group that also used govern- ment money, according to White House and Veterans Administration officials. What has been described by Nixon committee 'sources as an "obsession" with se- crecy and manipulation ap- parently extended even to the minutest details of the cam- paign. "Nothing was left to chance," one former White House aide observed. As an example, several Nixon. campaign officials cited White House orches- tration of the Republican National Convention last August. "We couldn't control what the (television) - networks did completely," one official said, "but we came close. When they weren't paying attention to what was going on at the speaker's plat- form, we'd shut off the lights in the convention hall to force the cameras to the podium." . Approved For Release 2001109104: CIA-RDP84-00499R000200010002-2 NEW YORK TIIES Approved For Relea49.2001/0/1)41al49OP84-00499R0004,0010002-2 Accent on Intelligence The presumption is that the C.I.A. is By Lyman B. Kirkpatrick Jr. engaged in a continual process of de- posing governments unpopular with PROVIDENCE, R. I.?For the many the United States. This is hardly true who have served their nation in the today. Evidence is accumulating that Central Intelligence Agency, and have United States policy is maturing to faithfully observed their oath to up. accept other forms of government hold and defend the Constitution of even though they might not conform the United States both during and to our criteria. While it has been ac- after their Government service, the knowledged that the United States did ? Watergate affair is not only repug. succeed in changing a government in nant but disappointing and saddening. Guatemala, and failed in a similar ef- fort at the Bay of Pigs, there is a The bill of particulars is damning. Two former staff officers and four growing conviction that such efforts a other ex-employes of the C.I.A. were are counterproductive in the long run and serve more to defeat than enhance among those involved in the Watergate break-in. The agency, upon a request United States policy. An implied assumption to the ques- operation against Daniel Ellsberg. The from the White House, helped in an tion is that the C.I.A. decides what State Department, also on a request governments to overthrow. This is not, from the White House, provided classi- and never has been, the case. fied cables to E. Howard Hunt Jr., con- The C.IA.'s covert operations are victed Watergate conspirator, who undertaken only after approval by "higher authority." What is true is used them as background in an effort to smear President Kennedy. The per- that C.I.A. operatives in the field and sistent innuendos that the Watergate officers in Washington have influenced was actually a C.I.A. operation has policy, and on occasion have acted rekindled fears that the "department independently abroad. The first in- ofstance reflects poorly on the . policy dirty tricks" was used to subvert domestic institutions. level at State, Defense and the White In fairness to C.I.A. and other de- House, and is obviously not the case today. When C.I.A. men in the field partments involved, the role of the White House staff should not be have acted too independently, the un- United States ambassadors sent them derestimatecl. It is not the custom of the bureaucracy to question a call home. from the executive offices. It is as- The question assumes that the C.I.A.' sumed that the President's people is training a breed of experts in sub, know what they are doing. While they version who will seek employment in the same field upon leaving the may not inform the President cif all details, it is usually believed they are agency: an assumption seemingly cons operating under approved policy firmed by the Watergate affair. guidelines. Actually only a small and rapidly Traditionally, Americans have Wor- diminishing fraction of the C.I.A. per- red about a Federal bureaucracy sonnel are engaged in political warfare, a dying remnant of cold war opera- cloaked in secrecy acting with im- tions. Most C.I.A. personnel are in punity to enforce the wishes of an all intelligence work: collecting, analyZ- powerful executive. To many, the C.I.A. ing, estimating, supporting; and it is had become the epitome of this evil ? following the Bay of Pigs and ac their unheralded efforts that are counts of operations involving the Na. sullied and obscured. tional Student Association and other The sordid mess of the Watergate United States-based foundations. Thus re-emphasizes the necessity for tight to some the C.I.A. is solely the Presi- controls over and persistent and criti- dent's personal action arm. cal review of all intelligence activities Confidence in the C.I.A. is not en- by the appropriate committees of the hanced when most of what one reads Congress. In my opinion the Congress about it is bad. Presidential and Con- has done a good job of checking on gressional statements about the agen- C.I.A. activities. But if the impression cy usually are confined to cryptic ex- has been created that the C.I.A. is pressions of confidence or reports of solely the action arm of the executive, committee hearings in executive ses- then the legislature must, assure us sion. this is not so. In fairness to the na- Perhaps it all could be summed up tion, the President and the Central In- in the question: if the C.I.A. trains its telligence Agency, the public must be operatives to overthrow the govern- confident that the C.I.A. serves the ments of other nations, is it not pos- nation and serves it well. sible that these same people might attempt to overthrow the Government Lyman 13. Kirkpatrick Jr.. professor of of the United States when they dis- . agree with its policies?Approved FoggeWteep /03,(04ibtArDP84-00499R000200010002-2 . official min ES/HC-i 1947 to 1965. tri- ohia P057 . TIMEAOMIRed For Relee" 2001/09/04 : CIA-RDP84-00499R0002,00010002-2 rvIAY 8 1913 E - 237,647 ? BY DAN K. THOMASSON Scripps-Howard Staff Writer WASHINGTON: James W. McCord .Jr. has alleged to federal 'investigators 'that the White House late last year tried to place responsibility for the Watergate break-in and bugging on the Central Intelligence Agency (CIA). McCord made the charges in a memorandum he recently sent to Feder- al District Judge John J. Sirica, to a Senate investigating committee and to others officially involved in the Water- gate inquiry. ? ' SOURCES CLOSE to the investiga- tion said McCord alleges in his memo- randum that there is a strong indication the White House last December planned to blame the CIA in an effort to take the heat off presidential aides and permit the White House to gain firmer control of the super-secret spy agency. McCord states in the memorandum, the sources said, that last December his attorney, Gerald Melt, came to him and said he should make CIA authorization for the Watergate mission part of his defense. He said in the memo that Alch had - just returned from a meeting with an attorney for one of the six other original Watergate defendants. - The sources said McCord surmised that the White House was behind the effort to blame the CIA, and that Alch left him with the impression all seven defendants had been asked to do the same. A source close to McCord confirmed the niemora n durn last night and said McCord refused to co-operate. He said the other defendants had agreed to go along, but couldn't when McCord de- clined. This source said some sort of deal was to be worked out if the defendants had taken up the CIA story. MeCORD SEVERAL weeks ago told the Senate committee that executive ? It has been confirmed by federal investigators that a sizable amount of Nixon campaign funds was used to pay "expenses and legal fees" of the Water- gate defendants. Investigators also have , determined that Nixon campaign money went to some members of the defend- ants' families. One former Nixon campaign offi- cial, Herbert L. Porter, has told Senate investigators that he was informed by his former campaign boss, Jeb Stuart Magruder, that G. Gordon Liddy, one of the defendants, had secreted more than $1.35,000 in campaign funds. THERE WERE reports yesterday,. that four of the defendants, all Cuban- Americans, were recruited for the Watergate- mission on the grounds that it was a CIA-sanctioned operation. E. Howard Hunt Jr., another . defendant, and McCord both were long-time CIA operatives before retiring. At least three of the Cubans had participated in one or more CIA operations against Castro's Cuba. Sources said the men were told their. Services were needed by the CIA be-- cause a large amount of money from pro-Castro sources was being dumped into the campaigns of Democratic presi- dential candidates. The four Cubans indicated at their trial?before pleading guilty to all charges against them?that they believ, ed they were acting for the U.S. Gov- eminent in a patriotic way. It has been disclosed in the last few days that the CIA took part in an effort to stop leaks of sensitive material, in- cluding the Pentagon Papers. At the re- quest of John D. -Ehrlichman, former chief domestic affairs adviser for Nixon, the CIA apparently helped pre- pare Ilunt and Liddy to break into the Los Angeles offices of a psychiatrist treating Dr. Daniel Ells-berg, who leaked the Pentagon Papers to the press. IN OTHER DEVELOPMENTS re- . federal graud clemency and promises to pay off the ported by Unitedfirei.6)6n.tqw.tunaL. se.von defendants for tiAippnolviediEPr Release Zoo 4 UIALKLJP84-00499ROOD2U0010002-2 O The Florida White House denied that President Nixon was aware before last March of the extent of the Water- gate scandal or of efforts to cover it up. Gerald L. Warren, deputy press secre- tary, made the statement in response to published reports that former presiden- tial counsel John W. Dean was prepared to testify that the President knew of high-level efforts to cover up the bug- ging. ? A subpena was issued today for Dean to testify under oath before the Senate's special Watergate committee. The question of immunity for Dean re- mained undecided. ? A former official of President Nixon's re-election committee, Robert C. Odle Jr., was abruptly dropped from an Agriculture Department post yester- day, less than a week after he was hired, officials said. Agriculture Secre- tary Earl T. Butz. ordered him fired. Odle, 29, has not been linked to the Watergate bugging. But he served as director of administration in the Com- mittee to Re-elect the President and has been named in a General Accounting Office report as one of several men who handled "unrecorded" campaign funds. In Odle's case, that amounted to $3040 to $4000 used to help pay for a public demonstration in support- of Nixon's Vietnam policies. Before joining the Nixon committee in 1971, Odle had worked for two years as an aide to Herbert Klein, White house communications director. ? Chief U.S. District Judge John J. Sirica granted Hunt immunity .from further prosecution and ordered him to testify before the Senate committee- in- vestigating the case. Sirica'S order was filed April 27 but was not made public until yesterday by reporters checking voluminous legal documents connected with the case. ? The Senate Watergate committee also asked for mimunity for Magruder and the four Cuban members of the original "Watergate Seven." ? 0 Former Assistant Attorney Gener- al Robert C.. Mardian, who conducted a Watergate investigation for the Re-elec- tion Committee, appeared befin-c the been offered. HS/11C- IIS/HC- i4-101 DETROIT, MI Otiaproved For Release 2001/09/04 : CIA-RDP84-00499R000W010002-2 NEWS E - 592,616 S - 827,086 MAY 8 137,3 By RICHARD A. RYAN - News Washington Bureau WASHINGTON ? CIA Director James R. Schlesinger has confirmed that a former dep- uty director of the agency- authorized the fur- nishing of materials to -convicted Watergate bugger E. Howard' 'Hunt that were subse- quently used in the burglary of a California psychiatrist's -office, a Michigan congressman Says. - - .Confirmation of the. role played by thesfore mer deputy director, now Marine Corps ,cony mandant Gen. Robert E. 'Cushman Jr., in pro- viding Hunt with the materials came yesterday telephime conversation between Schlesin- ger and Rep. Lucien ?W:- Nedzi; Detroit; NedZi said. ? ? . AS Chairman of a . special :intelligence sub- committee of the House Armed Services coin- mittee, Nedzi is charged with investigating the- activities of the defense intelligence agencies. .Nedzi said his committee will begin hearings this week in an effort to determine the exact role of the CIA in the Los Angeles burglary and who may have ordered Cushman to issue. Hunt the special equipment. Nedzi said Schlesinger told him that Hunt was provided with a camera, a recorder, var- ious disguises and false identification papers. Hunt, along with fellow Watergate conspira- tor G. Gordon Liddy, is accused of burglarizing the office of Dr. Lewis Fielding, the former psychiatrist of Dr. Daniel Ellsbcrg, now on trial for taking and releasing the Pentagon Papers. At the time of the burglary, Hunt and Liddy were on the White House payroll. They were involved, according to the FBI, in an "in-depth investigation of Ellsberg to determine his habits, mental attitudes, motives, etc." 'the two were part of a team, headed by. John D. Ehrlichman, the former chief domes- tic adviser to the President, in investigating the Irak of the Pentagon Papers. Other mem- . hers of the team were Egil Krogh, then a - White House assisi ant and David Young, then a member of the National Security Agency. Following his conversation with Schlesinger, Nedzi said, it is still unclear who instructed Cushman to provide the materials to Hunt. The congressman said, however, that it would be a "reasonable assumption' that the order to the CIA deputy director came from someone in the White House "at a higher level ' than Hunt." The New York Times reported yesterday that its sources said the order came from Ehr- lichman. Cushman, who has been unavailable for corn- anent, may eventually be requested to appear before his committee, Nedzi said. There is still a question of whether or not Cushman was actually aware of the intended purpose of the materials he made available to Hunt, Nedzi added. Schlesinger, according to Nedzi, promised that he would conduct a thorough review of the CIA involvement in the case and report his findings both to the committee and, if war- ranted, to the Justice Department for possible prosecution. "I'm convinced that Schlesinger is anxious to disclose any role that the CIA may have played in this affair," Nedzi said. "I think he is on the level. He has been completely candid with me." Nedzi said that there was nothing in his con- versation with Schlesinger that would indicate former CIA Director Richard Helms was in- volved in the furnishing of the materials. Helms, who was head of the CIA at the time, is now ambassador to Iran. The congressman said there is a "serious question" that the CIA violated the law by fur- nishing equipment that was used in a domestic - operation, "illegal or otherwise." By statute the CIA is prohibited from taking part in domestic affairs. "On The surface," Nedzi said, "it certainly appears the CIA's action was wrong." Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 \V it) .1.11. I iN t.i U.i.S , Y >0 criiiu ,413 proved'FoikWease 2001/09/04: CIA-RDP84-0049116000200010002-2 ?,..^.? :no o. .4. /1 -0 qi- . Ca v T. tC.1 s 4,7o. .LLL ise.1 'kJ Now that the Watergate investigat- ing committee has graciously recessed, it may interest a few people that the 'U.S. government is remarkably close to grinding to a halt. The ultimate eauSe is Watergate?intoxication in the Senate, so you can blame the Presi- dent if you choose. But the Senate is still the body that has chosen to halt the government in many vital ways. To get an idea of what is happening, you need only glance at a single area where even the dilatory Senate used to be capable of reasonably swift deci- sions. In the bad old days?which some are beginning to regard as the good old days?the Senate cherished two principles In dealing With vacancies in really major government posts. - First, the President, as head of the executive branch, was considered to have a right to fill major posts with men of his choice?unless they could be shown to have really grave deficien- cies. Second, it was also considered im- proper to leave posts like the secretary- ship of defense, or the directorship of the Central Intelligence Agency, in a ' kind of empty limbo for undue periods ' of time. Today, however, .we have had no Secretary 'of Defense since the Presi- dent transferred Elliot Richardson to the Justice Department. The CIA has also been leader-less since the Presi- dent decided to give the Defense De- partment to his new CIA' director, Dr.,. James Schlesinger, and to promote the -r able CIA professional, William Colby, .1 to ? the directorship Schlesinger has abandoned. ? No senator, on the Armed Services Committee can need to know much more about Dr. Schlesinger, since ex- haustive hearings were held before he was confirmed for the CIA director- . ship. As to Colby,. no one anywhere has so much as whispered that 'this was not a good choice by President Nixon. Offically, to be sure, the hearings on t?- Schlesinger were delayed because of his need to attend a NATO meeting in Europe. In reality, in view of the hear- ings just held, 'there was no apparent . need to question Schlesinger further. Presumably, the Defense Depart- ment and the CIA will now cease to be headless in a few days' time. But this is only because of the forceful inter- vention Isom his hospital bed of that relic of the more national-minded past, the chairman of the Senate Armed- :Forces Committee, Sen. John C. Stennis. Until Stennis intervened, the acting chairman, Sen. Stuart ,Syming- ton, meant to deal with Dr. Schlesing- er's nomination concurrently with the vast, complex and controversial mili- tary procurement bill which will de. mand weeks of hearings! This kind of senatorial ego-trip is merely frivolous. As to what Sen. J. PulbrIght is currently doing in the Senate Foreign Relations Commit- tee, uglier adjectives might well be nnoc:. Here the problem has been. the President's choice of four distin- , sedshed Foreign Service veterans for posts here and abroad. Pmcause of their past service in ? outheaat Asia, the four veterans Were '- te. ? 00;4 ? James Sciblosin,ger all subject to Senator lioelbright's an- gry veto. They were saljodged to be guilty men, and confirmation was ini- tially refused to all four. Under heavy pressure from the senio.? Republican on his committee, Sen. George Aiken, Fuibright then gave way on the nomi- nation of the former arc:basset:1?r to Thailand and .Italy, Graham A. Martin, to be the new U.S. ..mbassador to South. Vietnam. The argument used we.: the need to have an ambassador to deal with Presi- dent Nguyen Van Thela at this tricky juncture. All kinds of ego-massage, not just for Fulbrig,ht, but also for other committee members like Sen. Jacob Jayits, was further demanded and 'pro-. vided, before the confirmation of Gra- ham Martin was reluctantly conceded. Meanwhile, there are William E. Sullivan, named for the Philippines; J. lVIcIVIurtrie Godley, nominated assist- ant secretary 'of state for East Asian affairs; and Charles Whitehouse, for HS/HC-. 11/ Colby ambassador to Laos. All are men of im- peccable character. Whitehouse is per- haps the Foreign Service's most ad- robed member of his rank and age. s The charge against all of them is, solely and simply, that they faithfully carried out their instructions while on ? duty in Southeast Asia; This makes you almost homesick for n the awful McCarthy-time. After all, Sen. Joseph McCarthy so implacably and successfully pursued John Davies, John Stewart Service and their col- ? leagues; on the nmicue ground of their individual "bad judgment." What Sen- ator Fulbrig,ritt is doing is in fact much worse. . He is making it a proof of fatally `.'bad judgment" for Foreign Service officera to execute their own govern- ment's policy decisions. So what are P. Foreign Service officers to do in the future, if the Fulbright elaboration 'on P the late McCarthy is generally. accepted? 1. 1973. Loa Anzolas Timos Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 WASHINGTON, D.C. NATIONAL oBsEavErt Approved For Reletv 2001/09/04: CIA-RDP84-00499R00Valp010002-2 WEEKLY - 524,212 MAY 19 1973 The CIA's Link to Watergate .11141fr Spy Agency's Connection With Burglaries Grows Clearer,RevivingWorries About Its Domestic Role B, William J Lanouette ...assistant John D. Ehrlichman. Schlesin- cal analysis of Ellsberg based on a corn- Ever since it. was discovered, in the ? predawn hours last June 17, the Water- .: gate burglary and bugging raid on the Democrats national headquarters had a - -Mission: Impossible flavor to it. The job was financed with bundles of $100 bills. The burglars used phony names .and forged documents, They wore rubber gloves, and they whispered instructions ?'-through walkie-talkies. They toted bur- s-glary tools, electronic eavesdropping gear, and decument-copying cameras. And, in the best traditions of real and fictional spy thrillers, none of the seven ? dnen eventually convicted in the conspir- ..acy would reveal, the nature of his mis- sion or the names of his superiors. Two Career Employes The Central Intelligence Agency (CIA) Was mentioned in connection with the af- ,:fair right away, in part because of the . .:iiature of the predawn operation, and, d':more directly, because six of the seven ;-conspirators had once worked for the :agency. Indeed, two of them were career dCIA employes: James W. McCord, Jr., ;Security co-ordinator for the Nixon re- ! election committee, and E. Howard Hunt, former White House aide. a.d After their trial in January, McCord emphasized that the Watergate raid was , not a CIA operation, although three of t? the participants had been led to believe it was. Then last week the murky re- ? lationships between the CIA and the Watergate Seven became a little clearer with two revelations: i????' McCord said that his lawyer was prepared to argue that the raid was a -CIA job, and that the agency's director, d'James Schlesinger, would corroborate ?. this under oath. McCord's lawyer, Gerald :Alch, and director Schlesinger have 'denied McCord's sworn testimony. But ..,McCord, who retired from the CIA after 7:19 years, said his lawyer had told him that his CIA records could be altered to show he had resumed active duty. E. Howard Hunt said in sworn .'testimony before the reconvened Water- ''tate grand jury that he and coconspira- ???tor G. Gordon Liddy were given equip- ?nient and assistance by the CIA while "planning a burglary raid on the office of Pentagon Papers defendant Daniel Ells- 'berg's psychiatrist.. This raid was planned -and carried out in 1 71, while ttisg. '-.Vere working aS WhiRPRIVM,PYillEM. 611 der the direction of former Presidential ger corroborated Hunt's testimony and said the CIA action was ill-advised. These revelations were surprising , enough in theinselves, giving added di- asinension to the widening scandal that has come to be known as the Watergate af- fair. But even more, they call into ques- tion the role of the CIA in domestic af- fairs, a role that it is expressly forbidden to have by law. It is not the first time in recent history that the agency has been involved in covert domestic affairs. Ever since the CIA was organized in 1947, its principal task has been to gather and disseminate information that might be useful to officials in shaping America's foreign policy. The National Security Act of that year, which established the CIA, said "the agency shall have no police, subpoena, law-enforcement powers, or internal-security functions." Yet some CIA officials now point. to another section of the act to justify their involvement in the Ellsberg raid: "The director shall be re- sponsible for protecting in sources and methods from unauthorized disclosure." CIA director Schlesinger testified be- fore a congressional committee last week that Hunt visited the deputy director of the CIA, Gen. Robert E. ?Cushman, Jr., now Marine Corps commandant, at CIA headquarters on July 22, 1971, to ask help in "a highly sensitive mission by the White House to visit and elicit informa- tion from .an individual whose ideology he was not entirely sure of.. . ." In the course of their interview, Schlesinger said, "Mr. Hunt referred to Mr. Ehrlichman by name, and General Cushman acknowledged an earlier call from Mr. Ehrlichman to him." 'Technical Service' Cushman subsequently ordered that "appropriate technical service" be given to Hunt for a burglary raid on the Bev- erly Hills office of Dr. Lewis Fielding, On July 23 Hunt received a Social Security card, driver's license, and several associ- ation-membership ?cards in the name of Edward Joseph Warren (Hunt's alias), a wig, glasses, and a speech-alteration device. Later, Schlesinger told the com- mittee, the CIA gave Hunt a tape re- ecrcier in a typewriter case, a cam- era disguised in a tobacco pouch, and still later a disguise and documents for Liddy. The agency also develorda pilation of secondary sources. In addition the agency allowed Liddy and Hunt to use at least two "safe- houses" in the Washington area to pick up their equipment and to plan their raid. A "safehouse," Hunt- told a Federal grand jury, is an area of one sort or another where people on clandestine busi- ness are able to meet and transact their business without fear of interruption, of being identified, or being' overheard." The CIA maintains dozens of these loca- tions in the Washington area, and Hunt remembers one of the two he used being located across the street from the Na- tional Cathedral, near the capital's "Em- ' bassy Row." The raid itself, which was made on the night of Sept. 3, 1971, involved Hunt, Liddy, and three hirelings from Miami: Bernard Barker, Eugenio Martinez, and Felipe Di Diago. Barker and Martinez were convicted in January, with Hunt, Liddy, and three others, in the Watergate break-in. Before resigning as director of the CIA last week, James Schlesinger told a' Senate committee that his agency's in- volvement in the raid was "an ill-advised act." He pronaised that "regulations will be changed to preclude such happenings'' in clandestine operations within the United States again. Closer Scrutiny Several congressional subcommittees have announced they will hold, hearings on the CIA's involvement with the Ells- berg case. And Pep. Edward Koch of New York last week asked Democratic Rep. Lucien Nedzi of Michigan, who is chair- man of the Intelligence subcommittee of the House Armed Services Committee, to explore the limits of CIA authority. It was one of many demands on Capitol Hill for closer congressional scrutiny of the CIA.. Among the agency's recent activities within the United States are these: The CIA gave special training to local law-enforcement officers in at least 12 agencies throughout the country in the past two years, Koch said last week. He says he is upset that despite Schlesinger's assurance that domestic covert activities kiRoo letAk2.1s office4191013nd ii.1)relp:red a ps;c?hologi- will not occur again, agency wy s still believe that such'ApprONSO e 2001/09/04: CIA-RDP84-0429R000200010002-2 ized in the interests of national security. v Between 1952 and 1966 the National Students Association (NSA) received more than $3 million from more than 30 phony organizations set up by the CIA. The money was used for "broad programs of international affairs which worked with other unions of students," NSA President Wayne Groves said in 1967. Y.' A Federal -judge was also upset at how the Government investigated the bombing of a CIA office in Ann Arbor, Mich., in 1968. He criticized their actions :by saying that "an idea which seems to permeate much of the Government's argu- ment [to use wire taps without court ap- proval] is that a dissident domestic or- ganization is akin to an unfriendly foreign power that must be dealt with in the same fashion." As Schlesinger prepared to leave the CIA following his nomination as Secre- tary of Defense, Nixon last week named as his successor William E. Colby, an in- telligence officer since 1943. While Colby shares Schlesinger's views on the need for reorganizing and redefining the CIA's operations, it is ,too early to know if his approach to the job will assure that covert domestic activities can be avoided in the future. President Nixon made Colby's task of conducting a house cleaning eas- ier last week by signing into law a bill that increases to 2,100 from 800 the num- ber of CIA employes who can retire dur- ing the next year. Koch said last week that he thought the revealed cases in which the CIA was in- volved domestically "are the tiniest tip of the iceberg," a viewpoint that many on Capitol Hill are reluctantly beginning to share. ' Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 2 BOSTON, MASS. MORNING GLOBE Approved For Releas01/09/04 CIA-RDP84-00499R000200010002-2 M & S - CIRC. N-A MAY 61973 cutter mike By Richard M. Weintraub Globe Staff erg figures iCLCINFJ Cuisa esk E. Howard Hunt, Bernard Barker and several other men who have been implicated both in the Water- gate break-in and the break-in at the office of Daniel Ellsberg's psy- chiatrist have close ties . going back ? many years when they operated to- gether within the Central Intelli- gence Agency. While none of those so far impli- cated are believed to have been em- ployed by the CIA when the inci- dents occurred, it was revealed in testimony by Hunt at the Pentagon Papers trial in Los Angeles last week that CIA men provided a camera and disguises for the September 1971 break-in and that Hunt received, at his request, a psychiatric profile of Ellsberg from the CIA. There is an "old school tie" be- tween the men who have been impli- cated in the Ellsberg affair and the - Watergate break-in and the Central Intelligence Agency, according to Dr. Barton Whaley, a research affiliate at MIT and an expert on intelligence organizations. The main link is the connection of many .of the men involved with a group within the CIA known as the Cuba Plans Desk. This desk formed around Hunt, who was in charge of field opera- tions for the Bay of Pigs invasion and contained a number of people, both American citizens and Cuban exiles, who were rabidly opposed to Cuban Premier Fidel Castro. "There are few places you would go if you were looking for a eingle group of people who could perform all the 'dirty tricks' from forgery to safecracking to you-name-it. The Cuba desk was such a place," Wha- ley said. "They operated throughout the '60s as a very tight-knit, closed group within the agency and their independence was resented and. dis- trusted by many others in the CIA. This is very well known among CIA. watchers." Approved F Hunt quit the CIA in 1970, but was hired in 1971 by the White House as part of the counter intelli- gence unit known as the Plumbers Group to investigate the Pentagon Papers leak. He apparently ,over a period of time brought in a number of others who had at one point or another worked closely together on the Cuba desk in the CIA. These men could get -assistance from some sections within the CIA in connection with the Ellsberg psychiatrist office break-in without going through agency channels is en- tirely possible, Whaley said in an in- terview yesterday. "In the CIA, they are used to doing things without asking ques- tions, especially if the person or per- sons who asks to get something done is well known to them in connection with CIA work," Whaley said. Whaley's interest in intelligence work stems from his own involve- ment in psychological warfare intel- ligence during the Korean war. He has published two books and a large number of articles, all dealing with,. aspects of intelligence work, guerril- la warfare and deception operations. - Whaley has drawn up a rough chronology of publiy-reported events in connection with the re- election effort of Mr. Nixon and Pentagon Papers incidents in which he has noted the participation of for- mer Cuba desk personnel. In almost all cases, Whaley is careful to point out that the people involved apparently no longer were employed by the CIA. He says, how- ever, that the Cuba group was so close that there likely remained per- sonal and informal ties with people still in the agency. The incidents he noted, all of which have been reported in the press and often in grand jury teSti- mony, are: ?The reported compilation by Hunt in 1971 of a dossier on the inci- dent at Chappiquiddick involving' Sen. Edward M. Kennedy, reported by former presidential aide Charles W. Colson, OCTROPPAPt*Viat R?'ilrisCsria-tR(DionPoSf. "4 ?The r President Diem. of South Vietnam during President , Kennedy's term. Hunt is known to have tried to give the forged documents relating to Diem to Life magazine. ? The break-in at Ellsberg's psy- chiatrist's office in September 1971, in which Hunt and Barker, Were in- volved as well as two Cubans who Hunt reportedly has testified were hired to do the actual break-in. , ? The reported wiretap in the fall of 1971 on the 'telephones of two New York Times reporters connected with the Pentagon Papers leak. Hunt and G. -Gordon Liddy, former FBI agent and head of the White House counter-intelligence unit, reportedly were involved in this incident. Hiint allegedly aided Liddy in December 1971 in setting up .a spy network In Miami in connection - vnitiv the Democratic Na- tional Convention, This 3ar been mentioned sever-. al:times in "leaked" testi- mony before the grand, jury. Hunt reportedly uti- lized. the placement bureau at the CIA to get names of. "reliable people to aid in the 'operations. To this point. Iltmt and Barker had beeen working for the White House ccian- ter-intelligence unit (the Plumbers' group). 'ibis Hunt.? Barker and Liddy gronpe was disbanded and Hunt, Barkeer and Liddy went to work for the Corn- rnittee ? to Re-elect the President. In almost all cases, Whaley is careful to point tont that the people in- volved apparently no long- er Were employed by the CIA. He says, however, that the Cuba group was so cloee that there likely remenied personal end in- forMal lies with people stillin the agency. R00020004 2-2 ? The incidents he rioted, LP s Vegas nowspaper ' Icaeut Ai - in the ?ll of which have /ApprOvealigpil Relemsle:10081091404G IA-RDP8430409R000200010002-2 ported in the press and Mi. Edmund S. Muskie, at McCord Jr.. former CIA often in grand jury testi- that time the leading can- security officer but never mony, are: didate Soz Democratic connected to the Hunt- , The reported compi- presidential nomination. Barker group in the ;igen- - 1ation-by Hunt in 1971 of a Hunt reportedly proposed cy ? to break into the dossier on the incident at attempting to get the doe- McGovern bradquarteis: Chappiquiddick involving uments, but apparently the was foiled, Sen. Edward M. Kennedy, plan never got underway. reported by former presi- ? Liddy's secretary re- --;lotle 17, 1972. Watere. dential aide Charles W. portedly has testified that g atE ' et-tri discovered Colson. in early 1972 she typed re-, sod e siip caught. ? The reported forgery ports from sources within of documents relating to Sen. Icennedy's office LicidY' Hunt' the assassination of Presi- known. as "Ruby I, Ruby 11 BrkerSturgis, Eugenio ' dent Diem of South Viet- eind Crystal." While it is :R. Martinez and Virgilio R. nem during President not known what these Gonzalez all were con- Kennedy's term. Hunt is names represent, Whaley %toted in, relation to the }clown to have tried to believes from the code Watergate hi oak-M. give the forged documents names used that they were However, John w. Deanl relating to Diem to Life electronic surveillance :3(1' -the l'priner White magazine. units. break-in at Ells- berg's' psychiatrist's office , House in September 1971, in which; Hunt and Barker were -involved as well as two Cubans who Hunt re- portedly has testified were hired to do the actual break-in. ? The reported wiretap in the_ fall of 1971 on the telephones of two New ,York Times reporters con- nected with the Pentagon, Papers leak. Hunt and G. Gordon Liddy, former FBI' agent and --head of the White House counterintel- ligence unit, reportedly were involved, in this inci- dent. ? Hunt allegedly aided Liddy in December 1971 in setting up a spy network in Miami in connection with the Democratic Na.- tional Convention. This has been mentioned sever- al times in. "leaked" testi- mony before the grand jury. Hunt reportedly uti- lized the placement bureau at the CIA to get names of "reliable people" to aid in the operation. To this point, Hunt and Baker had been working for the 'White house coun- terintelligeace unit (the Plumbers' greop). This group was disbanded and Hunt, *Baker and Liddy wont, to work for the Com- mittee to Re-Flect the President ? in early 1972, Hunt ? reportedly mentioned that he had heard there were documents in the safe of a Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 --- Hunt hes been impli- cated in the hiring in early 1972 of 30 to 40 informers to infiltrate the headquar- ters of Sen. Hubert II. Humphrey, 11 eorge Mc- Govern and Henry .Tack- son, all contenders for the Democratic nomination. ?In March 1972, Hunt allegedly recruited Cubans in Miami in connection with, Sen. Muskie's -cam- paign in the Florida pri- mary, ? ?in early March 1.972, ,TItint is known to have 'gone to Denver to inter- view ITT lobbyist Dita Beard at her hospital. Shortly after this visit,? Mrs. Beard repudiated as ? forgery her memo dealing with 1TT contributions to the Republican National Convention, then planned for San Diego. ?In May, 1972, nine Cubans disrupted :a talk by Ellsberg on the steps of the Capitol. Barker has been implicated in the hiring of these Cubans in Miami and tOeir transportation to Washington. Two of :those nine reportedly .were in- volved eitner in the Ells- berg psychiatrist's office break-in or the Watergate break-in, or both. ?May 25. First Water- gate break-in. ?May 27, an attempt by live men ? 13ariter, the two Cubans, Frank A. Sturgis, former close col- counsel, and 'McCord are known to have expressed concern for their safety because others who night have been involved in various phases of these operations are still. free. Who these people are and. their relation to the above activities remains an un- answered question in the bizarre affair. "In their search for the big fish in the White House, I hope the many investigators do not lose sight of those much. farther down the line who also were involved," Whaley Approved For ReleavoatiOCIMI:INOMIA-RDP84-00499R000249,010002-2 1 MAY 1973 Kiss' By Kenneth,.J. Freed LinpocistOrress Some former staff mem- bers of ? the National Secu- rity Council say Henry A. Kissinger ordered phone taps on aides and newsmen when Kissinger himself was the prime source of leaks. Kissinger denied to news- men on at least two occa- sions that he initiated the electronic surveillance of members of his staff or newsmen, but he acknowl- edged talking about leaks and ways to stop them with then FBI Director J. Edgar Hoover. However, the sources, who served on the NSC both dur- ing and after the 1969-70 pe- riod in which the phone taps . were used, say Kissinger himself provided the names of the men he wanted checked. One of the former ? NSC staffers said at least two of . the newsmen whose phone conversations were listened to had direct and frequent access to Kissinger and much of their reporting was based on what he told them. The newsmen were CBS diplomatic correspondent Marvin Kalb and London Sunday Times correspond- ent Henry Brandon. The sources say Kalb particular- ly was given sensitive infor- mation by Kissinger dealing with Vietnam, the Mideast and other areas they say in- volved national security. Among the NSC staffers who were eavesdropped on was Winston Lord, a key aide to. Kissinger, Helmut Sonnenfeldt recently nomi- nanted as undersecretary of the treasury, and Morton Halperin, an agency cors,ult- ant who. left in 1970. The bug on Halperin is the only one publicly ac- knowledged by the Nixon administration, with Kis- ger's Exam 7,,s No. singer saying the surveil- lance showed nothing to in- dicate his former aide had ever been indiscreet or leaked classified informa- tion. - Other newsmen whose phones were tapped in their homes and, sometimes, of- fices included New York Times reporters Hedrick Smith and William Beecher. However, the former NSC aides said they did not know if Kissinger requested and approved the taps on ary newsmen other than Kan and Brandon. According to ' these sources, the taps were pl'aced on these. newsmen and NSC aides at Kissing- er's request in 1969 and 1970. They also claim there were other taps made after the February 1971 date on . which Kissinger said _lie stopped receiving reports from such surveillance. The sources said Kissing- er's actions could be ex- plained in several ways: First, that in the case of his aides he wanted to check that they were following the Nixon administration posi- tion and, second, to insure that they were personally loyal to him. One former aide said Kis- singer would accept polijical dissent but was outraged if he suspected any of his ems ployes of personal disloyalty or even discontent over workings conditions. As to the newsmen, the sources say even though Kissinger himself gave re- porters much sensitive in- formation, he was not satis- fied their stories always re- flected the view he wanted expressed. Therefore, if the reporters indicated they had obtained information independently ws 'Leak' Or disagreed with adminis- tration policies, Kissinger wanted to know about it, the sourees said. The former .NSC staffers actually laughed when told that some Nixon administration sources defended Kissing- er's actions as designed to clear his aides of suspicion. . Another administration source who has seen some of . the reports from the wire- taps says none ever indi- cated any disclosure of vital information that could have compromised national secu- rity. There was some indication of newsmen picking up guid- ance as to government pol- icy, he said, "but most of what went on between Kis- singer's people and report- ers was an exercise in ego- tism?the newsman swelling up over his inside informa- tion and the tipster trying to be impressive with how inside he was." But, according to the for- mer Kissinger workers it was their former boss who gave out important material to newsmen dealing with American military and nego- tiating tactics for Vietnam and for the strategic arms limitation talks (SALT) with the Russians. Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 Approved For Rele I'VAS:27:717:0.7 STMt 20011441W: diA3-RDP84-00499R0,00.4019.902-2 altrgi u J.1 Former White House counsel John W. Dean III says he believes that the Nixon administration is inveighing national securi- ty- to force him to give "very limited testimony" in Watergate investiga- tions. Associates of Dean, who was fired by President Nixon after becoming deeply implicated in the Watergate scandal, have offered further details behind his statement yes- terday charging an "ongoing effort" to see that he does not tell all he knows to a grand jury or to the Senate. His complaint inthat statement that someone was trying to put "restrictions" on his testi- mony was meant as a ref- erence to restraints in the name of national security as well as claims of privi- leged communications with the President, his associates said. These sources said that the stationing of FBI and Secret Service guards to watch over Dean's files at his White House office was behind his complaint that he was being kept from "obtaining relevant infor- mation and records." DEAN'S STATEMENT yesterda y also said there were attempts to influence how federal prosecutors handled his testimon y ? a reference, associates said, to what Dean considers to be pressure to deny him immunity from prosecu- tion. In discussing Dean's suggestion that efforts were being made to "discredit me" or to "get me," associates cited a statement broadcast b y CBS News that Dean did not want to go to prison principal) y because he was fearful of being mo- lested sexually. That is " a lie spread by his enemies," one asso- ciate said. The argumentA _that oared "national secant - siderations dictated that data relating to the Water- gate affair should not be given to investigators was used by Dean himself, another former White House aide, Charles W. Colson, has declared. In an in; erview with FBI agents, made public yes- terda y during the Penta- gon Papers trial in Los Angeles, Colson said that the issue had come up at a meeting with Dean when the y were discussing what he would sa y about FBI questioning of him on the Watergate affiar. COLSON SAID that he asked what he would do if the agents quizzed him about a bunglary that was related to government at- tempts to probe the leak of the Pentagon Papers to the newspapers. That bur- glary, of a psychiatrist's office in Los Angeles in 1971, has been related to the Watergate scandal because it was carried out by some of the same men convicted of the Watergate break-in. Dean advised him "that if asked, he was not to dis- cuss the matter inasmnch as it was a national securi- ty matter of the highest classification," Colson said. According to Colson's testimony, he received the same instructions from Ehrlichman in March or April of this year. Meanwhile, there were these other developments in the Watergate affair: 0 Former Nixon campaign treasurer Hugh W. Sloan Jr., in sworn testimony released yesterday, said that a number of high Nix- on campaign and adminis- tration officials were aware ? or had reason to be aware ? last summer that the scandal might reach higher in the gov- ernment than was being publicly acknowledged. 0 Gen. Robert E. Cush- ROMA-ICAO JAMES R. SCHLESINGER source of authority for the CIA to help equip the men taking part in the psychiatrist's office bur- glary, was preparing an affidavit on his role. Csh- man was scheduled to appear soon before two Senate committees prob- ing CIA involvement, per- haps later today. Aides to the general have been in- dicating the general did not know what the men in the burglary were plan- ning. 0 A CIA psychiatrist told senators yesterday that the personality profile he CIA-RDR844049R00020901i1002-2 'continued Approveclipr Release 2001/09/04: CIA-RDP84-0499R000200010002-2 Darnel Ellsberg, accused of stealing the Pentagon Papers, was the first of its kind ever made on an American citizen. The pro- file was prepared as part of the same Pentagon Papers leak-plugging ef- fort which involved the burglary of the office of Ellsberg's psychiatrist. Former CIA Director Richard Helms is sched- uled to appear early next week to tell what, if any- thing, he knows about the CIA role in the buglary episode. Nixon campgian aide Sloan, in his sworn testi- mony made pblic yester- day, indicated that Mau- rice H. Stans, chief fund- raiser of the Nixon campgian in 1972, had some inkling of the bug- ging scandal last summer. Sloan recounted how he became suspicious of the large amount of money being given Watergate conspirator G. Gordon Liddy, and asked Stans if deputy campaign director Jeb Stuart Magruder had the authority to approve such disuursements. Stans checked with campaign director John N. Mitchell ? also indicted in the New York case yester- day ? who said Magruder did have the authority, Sloan said. HE SAID, "I believe I expressed concern gener- ally (to Stans) about the fact that the totals were mounting up without any knowledge on our part of what, in fact, had hap- pened to our money." Stans replied, Sloan said, "I don't want to know, and you don't want to know." Sloan also said that fol- lowing the June 17 arrests, Magruder asked Sloan to perjure himself at any forthcoming trial regard- ing how much money Sloan had given Liddy. Sloan said he refused to perjure himself ? and did not do so ? and said he began attempting to alert higher-ups in the Nixon Administration about what apparently was going on. But Dwight Chapin, then the President's appoint- ments secretary, brushed him off by saying: " . . . (1) you are over- wrought, and (2) the im- portant thing is to protect' the President, and (3) you ought to take a vacation." He then went to John D. Ehrlichma, then head of the President's domestic counsel and one of the top presidential advisors, he said. "I think I got as far as saying there were funds that I did not know where they went, and there might be a connection with the situation. He told me to go no further, that he didn't want any of the details, if I had any personal prob- lems I had a special rela- tionship with the White House and they would be glad to arrange anaattor- ney. "I said, 'That isn't my concern. I just want you to know there is a problem over there,' and he said his position was that he would have to take execu- tive privilege until after the election in any case." Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 2 Hsifieeritir Approved For Relizqe8 Kissinger And Helms By James Reston WASHINGTON, May 17?The more you analyze the testimony in the Vhtergate scandals, the more you have to wonder about the closed at- mosphere or "don't call me" system around the White House in which all these extraordinary events occurred. Messrs. Haldeman and Ehrlichman were victims of it, both of them de- scribed by the President as exemplary public servants, which in his mind They undoubtedly were. But now even Henry Kissinger is charged with dui bious conduct, because he too is apparently invlved in cooperating too much with the White House closed- circuit system. How could Mr. Kissinger agree to bug ging his own friends and colleagues on the National Security Council staff in the White House, it is asked. And how could Richard Helms, former head of the C.I.A., allow the agency to be used in a domestic conspiracy, with- out challenging the White House staff and expressing his doubts and objec- tions directly to the President? Probably the simplest part of the answer is that the best of men love power and position, and do things or fail to do things that keep them in power even when they have their own moral doubts. The men around Presi- dent Johnson in the White House had a phrase for it: At the end of tiresome arguments about whether Johnson's policies in Vietnam were right or wrong, they would argue that "we have only one client?the President of the United States." This, of course, was precisely the fatal assumption of men like Halde- man and Ehrlichman, only they didn't put it into such a tidy and vulnerable phrase. But Kissinger and Helms were never in such close personal relation- ships with Mr. Nixon. They never had such ties of loyalty over so many years, and yet somehow they went WASHINGTON along with ambiguous and dubious things that troubled them morally, and they now find themselves in a very awkward position. Oil- : CIA-RDP84-00499ROOW0010002-2 One has to be very careful with this discussion of power, ambition, loyalty and morality. It involves delicate mo- tives and private philosophies and cal- culations no outsider can possibly know. For example, before he left Washington for Paris to try to save the Vietnam peace agreement; Mr. Kis- singer made clear to General Haig and others in the White House?one source says also to the President personally ?that if his moral authority was in question as a result of his part in the telephone bugs of his own staff, then he would resign at once. Ill - It is hard to see how this would improve any part of this dismal busi- ness. Things are bad enough as they are with the critical Brezhnev meet, ing, the arms control and SALT talks, and the European conference corning up. The atmosphere of the Nixon sys- tem is really at the bottom of this whole thing, and it has to be under- stood. According to F.B.I. sources, the White House, worried about leaks of security information in the news- papers, and even suspicious about Kis- singer, who was known to have friends in, the press, authorized the taps on the reporters and on Kissinger's staff and then asked him to cooperate in the operation, and talked to the late J. Edgar Hoover about the importance of making the Government's com- munications secure. Mr. Kissinger went. along with this. Some reports say he took the lead in it; but either way, in the atmosphere of doubt, suspicion, and even hostility on the Haldeman-Ehrlichman side of the White House, he either had to op- pose the bugging, in which case he would have been suspected of trying to cover up his own people, or he had to go along with it, or oppose it on moral grounds and get out. Maybe he should have got out, at least after he had negotiated the cease-- fire in Paris, and maybe Dick Helms should have gone to the President when the President's men were getting the C.I.A. involved in improper and even illegal activities; but the point is that the Nixon personality and the Nixon staff system don't encourage candor. They require loyalty and obedi- ence, not doubts, questions or criti- cisms. The Nixon system is to work through the staff. The staff is suspi- cious of anybody who questions what the President is doing. There are no rules that say Kissinger and, Helms cannot defy the system and insist on confronting the President, but it is hard to remember a man around Wash- ington in the last generation who walked into the Oval Room of the White House and challenged the Presi- dent, his policies and his staff. Staff officers, no matter who they are, don't put their careers on the line. Cabinet members from John Gardner under Johnson to George Romney under Nixon, tend to swallow their differences with Presidents and go away in silence. It takes a bold man to tell the Presi- dent and his staff the truth, no matter how much it hurts, And this Mr. Nixon has discouraged from the time he walked into the White House. or Release 2001/09/04: CIA-RDP84-00499R000200010002-2 NEW YORK TIMES Approved Fos ReleavadOtOMAC0419QA-RDP84-00499R00049010002-2 C.I.A. Doctors Say Ellsberg Is First ? American Given 'Personality Assessment' Project Made 2 `Appehensive By MARJORIE HUNTER Special to The New York Times WASHINGTON, May 10? Two medical officials of the ,Central Intelligence Agency told a Senate subcommittee today that a "personality assessment" made on Dr. Daniel Ellsberg was the first that the agency had ever made on an American citizen. The agency has been con- ducting such personality stu- dies for many years, the of- ficials said, but only of for- eign leaders. - The testimony was given by Dr. John R. Tietjen, director of medical services for the C.I.A., and Dr. Bernard Mal- loy, chief of the agency's psy- chiatric division, at a closed meeting of a Senate Appropria- tions subcommittee inquiring in- to the involvement of the agen- cy in the burglary at the office of Dr. .Ellsberg's former psy- chiatrist. . The doctors, questioned as they emerged from the meet- ing, said that so far as they had been able to determine, the Ellsberg personality assessment was the only one the agency had ever made on an American. They declined to answer fur- ther questions posed by news- men. No transcript of their testimony was made available. However, Senator John L. McClellan, chairman of the Sen- ate Appropriations Committee and of the subcomittee conduct- ing the inquiry, said later that the agency's doctors had testi- fied that "they were apprehen- sive throughout the project" and had mentioned these doubts to their superiors, in- cluding the Director and Dep- uty Director of the C.I.A. Said to Have Had Doubts Richard M. Helms, now Am- bassador to Iran, was the agen- cy's director at the time of the Ellsberg personality assessment in the summer and fall of 1971, and Gen, Robert E. Cushman: Jr., now commandant of the Marine Corps, was the Deputy Director. Senator McClellan, Democratl of Arkansas, said that the com- mittee considered it essential; to hear front both Mr. Helms; and General Cushman "at the earliest time possible." General Cushman has cut: short a European tour and is! expected to testify tomorrow' before a Senate 41rmed Serv- Helio ices subcommittee, headed .by Senator Stuart Symington, Democrat of Missouri. That committee is also inquiring itno C.I.A. involvement in the Pen- tagon papers case. Senator McClellan said that he had asked the State De- partment to contact Ambas- sador Helms about appearing "and we hope to hear his testi- mony next week?early next week, I might add." The chairman had indicated earlier that the subcommittee might also want to question John D. Ehrlichman, who re- signed as President Nixon's chief domestic adviser last week as disclosures of White House involvement in the ;Watergate scandal were un- :folding. White House involvement in the preparation of the Ellsberg personality assessment was of- ficially confirmed yesterday by the C.I.A. director, James R. Schlesinger. He told the Mc- Clellan subcommittee that Da- vid R. Young, Jr., a White House aide at the time, had asked the agency to prepare such a report on Dr. Ellsberg in the latter part of July, 1971. Dr. Ellsberg is on trial in Los Angeles on Federal charges of theft, espionage and con- spiracy involving the copying and alter disclosure Of the Pen-I tagon papers an United States involvement in Vietnam. Helms' Approval Reported Mr. Schlesinger testified that Mr. Helms, then the C.I.A. di- rector, had instructed officials of the agency to work with Mr. Young and that the agency's decision to prepare the Ellsberg study "apparently was ap- proved by Mr. Helms." Mr. Schlesinger said that two profiles on Dr. Ellsberg ? were prepared and sent to the White House. He said that the first had been compiled from "raw material" such as newspaper and magazine articles and Gov- ernment documents supplied by Mr. Young. This material, he said, "was judged insuffi- cient" by the White House. Additional material, includ- ing classified information from the Justice and State Depart- ments, was given to the agency, according to Mr. Schlesinger, and the final document was delivered to the White House by Dr. Malloy on Nov. 12, 1971. "Agency records indicate reviousiv kOlto:ug pproved rorc elaSet el II I I ? indicating he had read both re- ports," Mr. Schlesinger testi- fied. 'A Serious Impropriety' The intelligence agency has admitted furnishings disguises and other materials used by E. Howard Hunt Jr., a former White House aide who has con- fessed a role in the burglary of the psychiatrist's office in the fall of 1971. Asked today if he felt that the agency had violated the law, Senator McClellan re- plied: "I would not make a final decision on that. But it was, to say the least, a serious impropriety." The charter, the Na- tional Security Act of 1947, stipulates that the agency "shall have no police, sub- poena, law-enforcement powers or internal security functions." Internal security, espionage and sabotage. are under the juris- diction of the Justice Depart- ment. -RD 00010002-2 ritrcYclA ftlIt Approved For Reissue 2t111/0M419144-RDP84-00499R00Q00010002-2 I Bill Anderson How Cushman told Ehrlichman WASHINGTON?The commandant of the United States Marine Corps., Gen. Robert E. Cushman Jr., is expected to be in .Los Angeles today to testify be- Tore a grand jury about what the Cen- tral Intelligence Agency did and didn't do in the burglary of the office of the former psychiatrist of Daniel Ellsberg. The record in this case has unfolded in bits and pieces. The first disclosure on May 7 of CIA involvement was displayed in a sensational manner thru- out much of the country. There was one gar bled _account [quoting "sources"] that seemed to irriplicate Cushman [a former deputy director of 'the CIA] in the illegal act. This column's research into the mat- ter shows that Cushman is as "clean as 6 hound's tooth"?and actually dis- played a great deal of executive cour- age in saying "no" to John Ehrlichman, President Nixon's ex-chief ,of domestic affairs. The general also displayed his responsibility to the Congress, which has a "watchdog" committee oversee- ing the activities of the CIA. From our own perspective, we would like to note that Gen. Cushman has known President Nixon for. many years [as it was reported here Feb. 5, 1973]. When Mr. Nixon was Vice President, Cushman, then a colonel, went thru some very interesting and hard times with the Nixon staff as the Pentagon's liasion officer for international security affairs. However, as a result of that close HS/HC- association with Nixon, some people, including a few Marines, complained, that it was friendship rather than merit that took Cushman to the top of the corps. The facts are otherwise because Cushman actually rose in rank to com- mand posts [including assignments in Viet Nam combat] in two other admin- istrations. Senior marine officers told this column at the time of Cushman's appointment that it was a very profes- sional and good choice. And there now comes testimony to show that Cushman refused "to go along to get along" when he was depu- ty director of the CIA. From an undis- puted affidavit, we can report here that Ehrlichman called Cushman on April 7, 1971, and directed Cushman to give E. Howard Hunt [a former CIA agent] assistance. Ehrlichman had been designated White House coordinator to investigate and stop security leaks: He identified Hunt to Cushman as a "consultant" on security matters. The 1947 law es- tablishing the CIA makes the agency responsible to both Congress . and the President, -Cushman properly recog- nized the call as a command and as a result later directed the CIA's technical services division to furnish Hunt with false papers and disguises. All that Hunt would tell Cushman in a brief interview on July 22 was that the equipment was needed for a "one- time" operation "for a good purpose in the interests of the country." Cushman, tho, had the good sense to insert the interview at the time into the CIA's log [which would be available to Congress]' and report the matter to his then supe- rior, Richard Helms, director of the CIA. And very quickly Cushman began to smell a rat after his own employes at the working level of the CIA began to tell of strange additional requests which Hunt was making without going to Cushman. Once, Hunt asked for a secretary in Paris. Altho none of Hunt's real activities were known to Cushman then, the general blew the? whistle on him in less than a month. Cushman ordered all subordinates in the CIA to break off the connection, with Hunt and then called Ehrlichman on Aug. 27, 1971. The general told Ehrl- ichman [who was in effect an official superior of Cushman] that the assist- ance was being stopped "because it might possibly be construed as involv- ing the agency in. illegal activities."' [The burglary in Los Angeles took place Sept. 3, 1971?seven days later.] The general's sworn testimony also said, "1 also advised him [Ehrlichman] that in my opinion Mr. Hunt was of questionable judgment. He should know better than to even ask for such support." Our reason for presenting this column today is a belief that some of the initial, fragmented stories were excessively un- fair to Gen. Cushinan?and indirectly to the Marine Corps he represents. oved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 NEWSWEEK Approved For Releap 2004/04/6141.961A-RDP84-00499R00(40010002-2 SPREADING STIVN? k? ? JUSTiCf: A elTP C Bios' EsuC1eiAmae l) Lo sagrob,... The spreading stain- of Watergate has how many of his close associates had from CIA files, but later refused further dealt a punishing blow to the prestige been implicated. aid. Deputy CIA director Vernon A. and authority of the White House, but la THE FBI: Former acting director L. Walters, under orders from Presidential it has tarnished other agencies of the Patrick Gray III has admitted giving aides hI.R. Haldeman, Ehrliehman and government as well, The damage so far: White House counselor John W. Dean Dean, helped to stall an FBI investiga- DEPARTMEVf OF JUSTICE: Former At- III free access to Watergate files, even tion of the financing of the Watergate tonic): General John ?Mitchell conducted after he began to suspect Dean and oth- mission. There was a concerted White strategy sessions in his office at which err, of manipulating the FBI and the House effort to pm the bugging on the G. Gordon Liddy reportedly proposed CIA in the cover-up. Gray accepted and CIA,- but Helms never protested to Mr. ?mugging, bugging, kidnaping, and even destroyed two files from burglar E. How- Nixon or reported these activities to the a prostitution squad," and James Mc- ard Hunt's White House safe, given to CIA's Congressional watchdogs. Cord Jr. says Liddy told him that Mitchell him by John Ehrlichman and Dean. Gray DEPARTMENT OF STATE:- Under orders specifically approved the Watergate also allowed Ehrhehman to cancel a from the White House, Hunt x'as given break-in. Robert Mardian, Mitchell's pro- meeting he had arranged with CIA di- access to 240 secret State Department tege formerly in charge of the depart- rector Richard Helms to compare notes cables from which he falsified docu- ment's internal Security Division, is said on the cover-up?and he never sched- ments linking John F. Kennedy to the to have opened the department's files to ulecl another, assassination of South Vietnamese Presi- Liddy and E. Howard Hunt a year be- lg THE CIA: Two Watergate burglars, dent Ngo Dinh Diem. fore the break-in, McCord says he re- McCord and Hunt, were ex-CIA men THE SEC: After a New York grand ' eeived daily reports on the comings and who had served nineteen and 21 years jury reported that he had improperly goings .of Democratic Presidential candi- with the agency. The CIA provided handled an SEC complaint against in- dates from Mardian's unit. Mitchell was Hunt and Liddy with wigs, voice distort- dieted financier Robert . Vesco, SEC indicted in the Vesco influence-peddling ers, false papers and a special camera to chairman G. Bradford Cook resigned. case. His successor, Richard Kleindienst, use in the Ellsberg burglary. Former His predecessor, William J. Casey, now who has managed somehow to stay clear CIA director Richard Helms agreed to an Under Secretary of State, was also of the taint so far, was forced nonethe- give the White House "plumbers" a psy- under fire last week for SEC decisions less to resign on April 30 after learning chiatric profile of Ellsberg assembled involving Veseo and ITT. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 171k SHOGTON POST Approved For Re!Nip N91M/01971A-RDP84-00499R000200010002-2 General Says Warned About Hunt LOS ANGELES, May 29 (UPI)?Marine Corps Gen. Robert Cushman said today that convicted Watergate conspirator E. Howard Hunt was "like a bull in a China shop" while. preparing for the Ellsberg burglary. Tie said he warned the White House that he thought Hunt was "quest ion able." . Cushman made the 're- marks to newsmen after his testimony before a county ? grand jury probing the CIA role in the burglary. Cushman, now Marine commandant, was deputy director of the CIA at the time of the 1971 break-in of the office of Daniel Ells- berg's psychiatrist. Cushman was asked by presidential aide John Ehr- lichman to provide a dis- guise and false identifica- tion to Hunt, who directed the burglary and was con- victed in .the Watergate ? bugging affair. , Cushman would not dis- cuss specifics of his testi- mony before the county grand jury. "I told them ev- erything I knew. Whether it would be helpful, I couldn't - say." Cushman, asked whether. he felt his "trust" was vio- lated, said he believed that Hunt did so but "I have no way of telling" if Ehrlich man did. "T certainly think was put upon," the general said. Cushman said he called Ehrlichman and told him Hunt was of "questionable justice" and then ? cut off all CIA assistance. Esillc- Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 liEVV YORK TIMES Approved For Re!eat/002001/09/043. tIMDliia-00499R000249p10002-2 Cushman Says Hunt 'Violated Trust' T Special to The New York Times _ LOS ANGELES, May 29 ? Gen. Robert E. Cushman Jr.,! former deputy director of Cen- tral Intelligence, told a Los An- geles grand jury today that E. Howard Hunt Jr. had "violated", his "trust" by involving the; C.I.A. in the burglary of the office of Dr. Daniel Ellsberg's! psychiatrist. General Cushman, now corn-i mandant of the Marine Corps,' was the opening witness before: the grand jury, which is in-i uvestigating the break-in of Dr. Lewis Fielding's office on Sept. 3, 1971. Hunt has admitted having a role in the burglary while acting as a White House consultant. At a news conference after his testimony today, General Cushman said John D. Ehrlich- man, then President Nixon's chief domestic adviser, had called him in July, 1971, and asked him to aid Hunt. Hunt, General Cushman said, a C.I.A. employe for 20 years, told him that he had a "very sensitive interview" to conduct, and needed such things as false identification papers and a wig. General Cushman said he had agreed to the requests, but sub- sequently became suspicious when Hunt began asking for further help including an of- fice and a secretary. General Cushman said he had then called Mr. Ehrlichman and told him that the agency could no longer aid Hunt, and that he considered the former agent to have "questionable" judg- ment. Several days later the break-ha occurred at Dr. Ells- berg's psychiatrist's in Bever- ley Hills. Asked how he felt after learning about the burglary, General Cushman said, "I cer- tainly think I was put upon" by Hunt. Asked if he felt the same way about Mr. Ehrlich- man, the general declined to comment, saying he did not know how much Mr. Ehrlich- man knew about Hunt's activities. When reporters asked Gen- eral Cushman's reaction to the fact tliat Hunt had continued to work for the White House after Mr. Ehrlichman had been told that Hunt had question- able judgment, the general said: "I wish they had taken my advice." In June, 1972, Hunt was in- volved in the Watergate break-in, for which he was subsequently convicted. The grand jury investigation here will focus an Mr. Ehrlich- man and his former deputy, Egil Krogh Jr. Mr. Ehrlidhman had over-all supervision of a group called the "plumbers," including Hunt, who were charged with plugging security leaks. Mr. Krogh was in direct command of the group and has reportedly approved le break-in of the office of Dr. Ellsberg's psychiatrist. The New York Times reporte on Sunday that Federal investi- gators in Washington consid- ered the break-in here, and subsequent attempts to cover it up, as central to their case against Mr. Ehrlichman and H. R. Haldeman, President Nixon's former chief of staff. Aides to District Attorney Joseph P. Busch of Los Angeles County do not believe that the two investigations will conflict. One source said today that the Federal injury would probably focus on such crims as obstruc- tion of justice, while the local investigation wou'ld confine it- self to the break-in, and those who might have planned it. General Cushman tstified to- day because he will be unavail- able when the grand jury hears the rest of the case beginning on June 5. Hunt and his ac- complies in the burglarly have been granted immunity to test- ify here. Mr. Ehriclman, Mr. Krogh, and a former White House counsel, Charles Colson, are othenprospective witnesses. Seek I Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Rel -2%4 01%94 IMA-RDP84-00499R00(4p0010002-2 Ewa ANGELZS TIMES tarine to Cat ,I? t 4 1,4* ad- tr:"A C (fL) Items or reak-rin office 13 days after Ehrlichman's call and requested 'papers and a dis- guise so he could conduct a very sensitive interview and not reveal his identity." 'TJunt was given a false driver's license, cYc glasses, a wig and a speech alteration device at Cush_ Would Not Have Permit-tee Use for Illegal Project, Ex-Agency Official Says WILLIAM PAM?. Times Staff Writer "I certainly feel I was put upon:' Marine Corps Commandant Robert Cushman Jr. said, Tuesda.y about the deception. used in getting him to isstue CI.1 equipment to persons in- volved in the break-in at the office of Daniel Ellsberg's psychiatrist. The-year-old former deputy di- rector of the. CIA made the remark to newsmen after emerging from a half-hour appearance before the Los Angeles County Grand .1trry. Cushman's comment about being "put upon" specifically referred to Howard Ilium, who v..as a White }louse consultant at the time be sought help from the CIA in the summer of 1971. The four-star general stopped short of being similarly critical of former presidential adviser John Ehrlichman, who called him .July 7, 1971, and asked him to "give a hand' to Hunt on a national security mat- ter. . ? Bequest for CIA Assistance Cushman said beh d "no \\ a,v id telling" whether Illirlichtuan knew that limit bad all illegal piolect in rnind when he rogue-led the CIA equIpMent. l001: Ille111 at their ?vord," he added. lie said lid never would have au- thorized issuance of the equipmk:nt to I runt lc.;t1 he '.e'' ii 11 wo?,11,1 used in connection with Cii in. Asked if Ehrlicliman the Pre. lent dtirin'2, .1?Th 7 con- versatio CI slmr n rep :Hi. 1 his (1Thrlielurt;ut) ll :didn't h,\ Ii ' A t v9-1, %r. pproved therecut's! for -: c. the general' sarl, ..?.e ea) idea whethei la ('i 1 o: if he kiii'iv;t! na'n " (IU5i1iFIli.ill Ii !'a t Ole to hi; man's direction. and later was issued a camera and small tape ree- ori r. ".1I puzzling aspect of this case is why be wanted that stuff. You would think he would have request- ed lock picks," Cushman said, . Asked ii lie voold have issued loci.: picks had they been requested, Cushman said, "-Oh Lord rio." Hunt has admitted pltmning the break-in along with another conYict- ed Watergate coconspirator, Co Coma don Liddy, but the actual entry into the Heverly Hills office of Lewk 1. Fielding WaS made by three bans. Cushman said that he leal?ned th also hAi obtained a (IL:guise from the CIA, even though it 11:A1 not been specifically au- thorized. Cushman said he became concerned about Hunt's "questionatile - judgment" by late August of 1911. The general said Hunt's request f or conditional CIA assistance in opening an office and establishing a telephone monitoring system made him suspect "that it was more than a one-time interview he was engaged in." He called Ehrlichman to complain about H u n t' s "escalation" of involve- ment with the CIA, the general said, adding Eh- rlichman responded by saying,"OEI, I'll restrain him. "This let us off the hook," Cushman said. ? Had II1hrlichman insist- ed on continuing CIA help for Cushman said he would have had two al- . ternatives, "I could go along or I could resign." - He said he heard no further about Hunt until the latter was arrested in- side the Democratic head- quarters at Watergate. "For nil 1 knew, he had droppedoff the face of the earth," Cushman said. . It as not until Hunt's in- volvement in the Fielding break-in was revealed at the Pentagon Papers trial here that Cushman learned the CIA equip- ment was used in connec- tion with the attempt to ,fi?ielf17,11sberg's psychiatric 63. Cushman was allowed to testify a week before full ,7rand jury hearings on the break - in are scheduled. The early appearance was arranged by D s t. :1tty. Joseph Busch to allow C U shman to heel) 11 i s scheduled military com- mitments. a HS/HC-; proved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 HOUSTON POST Approved For Releara#2001/-10M1161a3P84-00499R00046)010002-2 (Even CIA wouldn't go tor Brownie points ' Watergate a 'covert action' folly By DONALD R. MORRIS Post News Analyst - - In the intelligence community there is a precise term which covers the entire range of activities carried out by the Watergate sus- pects. It is "covert action", and it refers to clandestine (and usually illegal) efforts to influence the course of poli- tical events abroad. The CIA is charged (through various National Security Coun- cil Intelligence Directives) with the conduct of covert action abroad, and it is thoroughly familiar with the entire .gamut of such operations, as well as AL with the means and techniques of mounting them. The United States has mount- ed such operations in the past, and will no doubt mount them again, but for several rea- sons they are far less common than one might suspect. To begin with, the best of them are hardly more than pin-pricks, which can only rarely swing elections cc appreciably dent public opinion trends. (Had all the political sabotage generated by the Watergate crew been con- ducted by the Democrats against the Repub- licans, the 1972 election figures would hardly have differed.) The CIA, which has other fish to fry, does not like to waste time and money collecting the minor Brownie points that are the only gain to be milked from most forays into covert action. An even greater bar to covert action is its horrendous, flap potential ? as Watergate makes all too clear. No intelligence official in his right mind (and the overwhelming majority of them are in their right minds) would dream of approving unnecessary covert action unless the need were imperative and the risk of attribution minimal. , "Mission Imposshle" to the contrary, pro- fessional intelligence activity is predicated on - minimal risk. - Then, too, most of the CIA's expertise in covert action comes not from mounting such operations itself, but from countering Soviet ones. In almost two decades of service, for ever Y covert action operation I know of, I was involved in coping with at least 20 So- viet capers. Watergate started with the establishment in the White House staff of what was in effect a CIA-type Field Station to conduct domestic covert action. The genesis is not yet clear, but in De- cember 1971 Jeb Magruder (Haldeman's aide) and Herbert Porter asked Gordon Liddy to develop such a unit. The professional intel- ligence background arrived with Howard Hunt, an ex-CIA official? and McCord (also ex-Agency and a technical services expert) and Segretti were soon in business. inese tour men were the equivalent of the "case officers" responsible for recruiting subordinates and implementing the operations they themselves or their superiors suggested. Apparently there were several "branch chieis" who could approve the various opera- tions or nauthorize their funding. Liddy and Hunt both reported to Egil Krogh (Ehrlich- marts aide), although Hunt reported primarily to Charles Colson (who was a Special Counsel to the President). Segretti reported to Dwight Chap.:, who with Gordon Stachan had hired him. And both Chapin and Strachan were as- sistants to Haldeman. The extravagant flurry of names, of titles, Of missing files and transferred funds still tends to blur the outlines of this covert action "Sta- tion." The case officers are known, as are the branch chiefs. Still unidentified are the equivalents of the "Chief of Operations" and the "Chief of Sta- tion" ? the COS professional parlance?him- ? self, Functionally, they must have existed. And on their identification hangs the fate of an administration. Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 WASHING ON POST Approved For Relets, 2001/04034 EIVAR4:r84-00499R00C40010002-2 CIA Official Felt Aide Spoke for Nixon By Laurence Stern Washington Post Staff Writer Gen. Robert H. Cushman Jr. said yesterday he as- 'slimed it was on President Nixon's behalf that former White House aide John D. Ehrlichman asked him to give Central Intelligence Agency undercover assist- ance to Watergate conspira- tor E. Howard Hunt. The CIA paraphernalia? cameras, .hidden tape re- corders and wigs?was later used by hunt in the bur- glary of Pentagon Papers defendant Daniel .Ellsberg's psychiatrist, Dr. Lewis Fielding of Beverly Hills, in September, 1971. Cushman, who was the CIA's deputy director at the time, said that when Ehrl- ichman called him and re- quested the aid for Bunt, "I knew that he . .. spoke with the authdrity of the Presi- dent's name." "I had known Mr. Ehrlich- man for a good 10 to 12 years and respected him highly as a man of complete honesty and devotion to duty," the four-star Marine general said of the former Presidential aide. .Cushman, who now serves as Marine Corps comman- dant, interrupted a Euro- pean tour to present his tes- timony to a Senate Appro, priations Subcommittee on intelligence. . Afterward, subcommittee chairman John L. McClellan (D-Ark.) commented to newsmen: "I don't think he (Cushman) would do it again." ' Cushman gave this expla- nation of how a White House call. in July, 1971, triggered immediate and ex- traordinary - cooperation from the CIA, "Ehrlichman had been named within the White House as the man in charge of stopping security leaks and over-hauling the secu- rity regulations. The Cell: tral Intelligence Agency is charged with safeguarding intelligence sources and me- thods. "From these facts, i? then drew the conclusion which I believe any reasonable man would have reached, namely that Howard Hunt had been laired by the/White House to act in the security field and that the Central Intelligence Agency was being ordered to assist him," Cushman as- serted. Outgoing CIA director James R. Schelesim,-rer has condemed the assistance to Hunt, provided before he as- sumed control of the agency from Richard M. Helms, as "ill-advised." ? Immediate senatorial re- action was that although the, CIA assistance to Hunt was improper, the fault lay with Ehrlichman, who resigned under fire two weeks ago from Ins job -as President Nixon's domestic. counselor. "When a man is in the position of Ehrlichman, the first deputy to the corn- mander-in-chief," said Sen? Stuart Symington (D-Mo.), acting Armed Services Com- mittee chairman, "there are .pot many military officers who would not jump." Under the CIA's charter, the National Security Act of 1947, the CIA is proscribed from dealing with any inter- nal security matters. That is the province of the FBI. Cushman Said that when Hunt called upon him on July 22, 1974, he "stated that he had a very sensitive one- time interview that the White House wanted him to hold with a person whose ide- ology he was not sure of and that he dare not reveal his; Hunt's, true identity." He noted that "it must be recalled that Mr. Howard Hunt was a highly respected and honorably retired CIA employee of 20 years' serv- ice." Nonetheless, said Cusman, White House wanted him to "I was not able to elicit any details of the interview which he stated that he had to conduct and he said that - on White House orders he was not to reveal the nature and scope of this interview nor the fact that he Worked for the White House. "He did assure me, how- ever, that he was working to a good purpose in the inter- ests of the country." After the spy gear was is- sued to Hunt bY the CIA's Technical Services Division, Cushman reported the mat- ter to then-director Helms, . according to his affidavit. The decision to cut off the aid came, he said, because "Mr. Hunt was becoming more and more unreasona- ble and demanding and was attempting to go far beyond the scope of the original in- structions which I had given and which related to his statement that he had a one- time interview operation to conduct." lie ordered all relation-. ships. with Hunt discontin- ued, Cushman related, and informed Ehrlichman on Au- gust 27, 1971, that the assist- ance could he construed as improper for the CiA. "I also advised him (Ehrlichman) that in my opinion Mr. Hunt was of questionable judgment. He should know better than to ask for such support," Cush- man asserted. "Therefore, 'I made this recommendation to Mr. Ehrlichman for him to do with as he deemed proper." Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 VTAS:IINCTO2I ST.'," ? Approved For Relwe tORM/0437VA-RDP84-00499R004300010002-2 r V' " ,? :L:4., BY JEREMIAH O'LEARY star-m,s Staff Wrt ter Former Presidential aide John D. Ehrlichman? has been accused by two Democratic senators of committing "illegal and unethical" acts in request- ing Gen. Robert E. Cush- man Jr. to provide CIA - technical assistance for E. Howard Hunt Jr. for a domestic security opera- tion. The charges were lev- eled at Ehrlichman yester- day by Sens. Stuart Sy- mington of Missouri and Henry Jackson of Wash- ington after Cushman tes- tified on his connection with Hunt before a closed session of a Senate Armed Services subcommittee. Cushman appeared be- fore three separate sub- committees of Congress yesterday and is sched- uled for additional appear- ances today and Monday. Cushman, now the com- mandant of the Marine Corps, presented a sworn affidavit to all three sub- committees dealing with the circumstances under which he approved CIA technical assistance for Hunt in 1971 to do an un- HS/HC-,Prp specified "interview" connected with national security. - After Cushman's affida- vit and intensive question- ing of him by the Senate Armed-S,ervices subcom- mittee late yesterday, there were indications that the legislators were hold- ing Cushman blameless for complying with what' he regarded as White House orders to help Hunt. SYMINGTON told re- porters the subcommittee would question Cushman again at 10 a.m. Monday but declared on the basis of what the 'commandant had already revealed "I could not criticize Gen. Cushman for the actions he took in the beginning and what he did later." Cushman's sworn affida- vit said that Ehrlichman called him at the CIA on July 7, 1971, and told him Hunt was a White House "bona fide" employe as- signed to security matters. Hunt, according to the Ehrlichman phone call, would come to Cushman and "request assistance which Mr. Ehrlichman requested that I give." Cushman said he knew Ehrlichman was one of President Nixon's- three chiefs of staff and "that he spoke with the authority of the President's name." Cushman said he drew the conclusion that Hunt had been hired by the White House to act in the securi- ty field and that CIA was being ordered to assist him. . Hunt came to see Cush- man on July 22, 1971, and said he had a "very sensi- tive one-time interview that the White House wanted him to hold with a person whose ideology he was not sure of and that he dare not reveal his, Hunt's, true identity." When lIunt asked for false papers and disguises for his mission, Cushman said he ordered CIA's Teclmi- .cal Services Division to 'provide them. "I WAS NOT a. ble to elicit any details of .the interview which he stated he had to conduct and he said that on White House orders he was not to re- veal the nature and scope of this interview," Cush- man said. Congressman told re- porters that Cushman tes- tified he did not learn the nature of Hunt's mission or the fact that it involved an American within the United States until he read of the robbery of Ellsber-g's psychiatrist in recent weeks. Sen. Jackson said Cush- man violated no law be- cause he did not know the purpose for which Hunt wanted the espionage equipment from the CIA. But Ehrlichman violated the 1947 Security Act by requesting Cushman's help for Hunt, Jackson said. That law, he added, bars the CIA from under- taking any activity within ? the U.S. CUSILMAN SAID it was in late August 1971 that he was advised by CIA mem- bers that Hunt was becom- ing unreasonable and demanding, far beyond the scope of the original in- structions. He stid he immediately stopped all relationships with Hunt and called Ehrlichman on Aug. 27, 1971, to tell him he could no longer help Hunt or have anything further to do with him. Cushman acknowledged that he did not use normal caution in dealing with Hunt because of the Ehr- lichman endorsement of the ex-CIA agent. And he told a Senate Appropria- tions subcommittee he would not be likely to go ? along with a similar case another time. Cushman told members of the Irouse Armed Services subcom- mittee the Ehrlichman request was not routine but rather was the only such case he had ever encountered while at CIA. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 BALTIYORF, Approved For Rele449,2001/01444/41497FP84-00499R000200010002-2 r ,..,_ . However, .'in early ' March' interview that the White House Hunt had beemeonvieted at the wanted him to hold with a oc-CIA director Watergate trial, but Mr. Helms person whose ideology he was said nothing to the committee not too sure of and that he e . about the . CIA materials that dare not ? reveal his, Hunt's, 11.-ilked to Hunt aid time the break-in at the Dr. Although he declined to be had been given to him. At that true identity." e Ellsberg's psychiatrist's office specific, Hunt "did assure me, ny STEPHEN E. NOHDLINGER was not publicly known, however, that he was working 'Washington Bureau of The Sun "Do you think that he [Mr. to a good purpose in the inter- Helms] was lying to you?" ests of the country," General Washington?Gen. Robert E. director of central intelligence, asked - Elizabeth Drew, the TV ' . Cushman said: - '?Mr Richard - Helms, and he interviewer. He appearea before the Cushman, Jr.. disclosed vester- . day that Richard M. Helms, ,'- ? House Armed Services sub- former director of central in- assented- to what I had done," "I 'don't know" committee on intelligence oper- telligenee, had "assented" to. said General Cushman, who "I don't know, l'in just tell- ations, the Senate Appropria- supplying materials to E. How-, broke off a tour of European ing you what he ? said (to the. tions subcommittee on intern- , ard Hunt-, Jr., who was lateri milita bases to testify on committee)," pence operations and the Sen- ' , involved in burglarizing ry the. ol-1 Capitol Hill on CIA involve- bright replied. "It's possible he Senator' . Ful- tact:. Armed Services Commit- Bee of Daniel former psychiatrist. Ellsberg's , me.nt in-the Ellsberg ease. .did .not know about- it, I , .. don't-know." Senator FUlbright The three-page affidavit, pre- - In a sworn affidavit submit- Was not available for comment ted to three congressional com- pared at the direction of the yesterday. 'inittees during the day. Gen- Defense Department, provided In his sworn statement, Gen- eral Cushman, former deputy the first indication that Mr. director of the CIA and now Helms had approved turning Marine Corps commandant, over CIA materials. and equip- admitted disguisesthat he had author- ment to Hunt in the summer of ized the , false identi- 1971.,- -, - fication papers and other CIA' . materials supplied to Hunt, a convicted Watergate burglar. - But General Cushman main- tained that he was acting under orders from John D. Ehrlichman, who recently re-, preparation of a psychological signed as President Nixon's profile of Dr. Ellsberg for the 1 chief domestic adviser, to co- White House. operate with Hunt, a 20-year Mr. Helms, who took .up his veteran CIA agent and later a post earlier this year, has been White House aide. ' summoned home to testify be. The 53-year-old four-star gen-? fore several congressional -era], who appeared in uniform committees? for the closed-door hearings, Raises question conceded in the affidavit that he had failed to determine how General Cushman's state- the materials were to be used. ment raised sonic question But he said that he fermi- about whether Mr. Helms had noted CIA aid to .Hunt about been completely forthcoming Mr. Ehrliehman "for a good 10 two months after the initial in closed-door testimony before' to 12 years and respected him request when Hunt made -un- the Senate Foreign Relations highly as a man of complete reasonable" demands beyond Committee early in March. - honesty and devotion to duty." the scope of the "original in- Senator - j.W. Fulbright (D.,' He also said in his affidavit structions." Ark.), t he committee chair- that Hunt informed him that General Cushman said that man, asked him ? specifically he needed the CIA assistance ,,. after he authorized the sup- whether the CIA had been in- for a "very sensitive one-time plies he had informed Mr. volved ' in the Watergate bur-, Helms, now ambassador to glory -and bugging. Last night, Iran. in a television interview, Mr. "To the best of my recollec- Fulbright said that Mr. Helms tion, I reported this tauthoriza- said that the CIA had not' been [ion] a few days' later to the inyolvut. era] Cushman said that .after he had cancelled all. nid to Hunt, he informed Mr. Ehr-, lichman August 27, _1971, that Hunt. was . of . "questionable judgment" and "should know Three days ago, a statement , better than to even ask" for. by James H. Schlesinger, the j seGne of the materials he re present' director of central ?in- Iqucstd. . telligence, said that Mr. Helms Despite this, warning, Mr. had' "apparently approved" the -Ehrlichman apparently took no 'action to -curb .Hunt's. activi-1 ties. A week after this conver- sation Hunt was involved in the break-in at the office of Dr. Lewis Fielding, Dr. Ells- berg's former psychiatrist. Later he took part in a forgery and impersonation and the Watergate-break-in. General Cushman, who served as President Nixon's military aide when he was vice president, said - he had known roved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 NEW TQRI; DAILY NEWS Approved For Relemp200Q,9414,; c14847RDP84-00499R000200010002-2 Miff rs.1/:? By JEROME CAHILL and JEFFREY ANTEVIL -Washington, May 10 (NEWS Bureau)?A week before E. Howard Hunt Jr. '.engineered the burglary of the office of Daniel Ellsberg's psychiatrist in 1971, the Cen- tral Intelligence Agency warned the White House that the since - convicted Watergate ,?Conspirator was . `of questionable judgment," congressional investigators were told !today. - Marine Can. Robert E. Cush- man Jr., deputy director of the CIA at the time said in an af- fidavit submitted to House and Senate Armed Services Commit- tees that he conveyed the warn- ing to presidential adviser John D. Ehrlichman on Aug. 27, 1971, but got "no reaction" from Ehr- lichman. Seven days later, a burglary squad recruited by Hunt broke into the Los Angeles of- fice of Dr. Lewis Fielding, look- ing for Ellsberg's psychiatric files. Had Second Thoughts Cushman testified that he au- thorized the CIA to assist Hunt in what appeared to be a legiti- mate investigation into security leaks after receiving a telephone call for cooperation from Ehr- lichmanon July 7, 1971. Soon, the former CIA deputy .said, he was having second thoughts as to the true nature of the inves- tigation. "Toward the latter part of Au- gust 1971, it was reported to me that Mr. Hunt was becoming more and more unreasonable and and was attempting to go far beyond the scope or the orig- far beyond the scope or the orig- inal instructions which I had giv elated to his statement that he had a one- time interview operation to con- duct," Cushman said in the affi- davit. "I therefore immediately stopped all relationships with Mr. Hunt and gave instructions to that effect ot the agency. I called Mr. Ehrlichman on that matter on .27 August 1971, and Al said that we cannot give such assistance because it might pos- sibly be construed as involving the agency in improper activities. `1`10f Ostionable judgment", "I then explained the con- straints on the agency and final- ly advised Ehrlichman that the agancy would not have anything further to do with Hunt. I also advised him that in may opinion Hunt was of questionable judg- ment. He should know better than to even ask for such support." Before the CIA called a halt to its assistance to Hunt, it pro- vided him with a wig, fake eye- glasses, doctored driver's license, social security card and bogus membership cards, a tape record- er concealed in a typewriter case, ? EDt and a camera disguised as a to- bacco pouch. But the spy agency drew the line when Hunt demand the ser- vices of a CIA secretary plus ew York mail drop and tele- phone answering service, and a credit card The demands sug- suggested to the CIA that Hunt was embarked on a long-term domestic clandestine operation. The agency, whose operations A re limited to overseas locales by law, then pulled out, sources Cushman told the lawmakers "unequivocally" that he had no knowledge "before or after the fact of any illegal or unethical acts." In his affidavit, Cushman said he originally cooperated with Ehrlichman because he knew the White House aide had been as- signed by President Nixon to the task of reviewing U.S. security procedures following the theft and publication of ? the so-called Pentagon Papers. Ellsberg, .a for- mer Pentagon employe, is on trial in Los Angeles in connec- tion with the documents case. "Sensitive Onetime Interview"' - -Cushman testified that on ,July 22, 1971, Hunt came to CIA head- quarters and told him that "he had a very sensitive onetime in- terview that the White House wanted him to hold with a person whose ideology he was not too sure of, and that he dare not reveal his, Hunt's true identity." - Cushman said, "I was not able to elicit any details of the inter.- view" from Hunt, but was as- sured by the undercover man that "he was working to a- good pur- pose in the interest of the coun- try. Rep. Lucien N. Nedzi (D- Mich.), chairman of the HoUse- Intelligence subcommittee, said the "critical thing" in Cusbinan'z testimony was the fact that Ehr- lichman kept Hunt on the Ells - berg security case and the White House payroll despite the adverse ,CIA report on his. judgment. Approved For Release 2091/940/e946R1174-00499R000200010002-2 pw YORK TEES Approved For Relemp2001/9/94KIRA/69P84-00499R0002,...00010002-2 CusiipaAN AccouNT gmoand e pwartehrsth et raiaplr, r '01?1,aa ld n fb he \": le rn. ; Helms. i But, until today, it had been :General Says Helm, widely assumed that Mr. Helms may have been unaware that! -'Assented' to Aid to General Cushman had agreed' . to a request by John D. Ehr- Hunt for Break-1n !Hellman, tat that time a key; . !White. House aide, for C.I.A.i i i!assistance to Mr. Hunt. Senator J. W. Fulbright, in; By MARJORIE HUNTER a television interview spon-? Special to The New York Times 1 sored last night by the Nation- WASHINGTON, May 11 Hai Public Affairs Center, said 'Gen. Robert E. Cushman ;Jr. that Mr. Helms had - assured said ;today that Richard Helms, him earlier this spring that the his superior at the Central In- agency had not had anything! telligence Agency in 1971, had to do with the Watergate af-i "assented" to agency assist-, fain ; ance to E. Howard Hunt Jr.,! The Arkansas Democrat said one of the conspirators in 0-iel /that when Mr. Helms appeared Watergate case. I before the committee for con- i firmation hearings on his ap- ,Mr. Helms, now Ambassador pointment as Ambassador, "I to Iran, was Director of Cen- asked him specifically during tral Intelligence at the time lids examination, did the C.I.A. the agency, in the summer of have anything to do with any 1971, provided disguises and of this Watergate, and he said equipment to Hunt, upon the ; It is understood that the .se- request of the White House, eret transcript of the Senate!l The materials supplied to ,Foreign Relations Committee;1 Hunt were used for the break., on the Helms confirmation in at the office of Dr. Daniel hearing confirms Senator Ful-1 bright's comment. . Ellsbcrg's psychiatrist on Sept. Hunt pleaded guilty last Jan.. 3, 1971, in Beverly Hills, Calif. 10 to having taken part in the General Cushman, now corn- bugging of Democratic head- mandant of the Marine Corps, quarters in the Watergate 'corn- confirmed today that as Deputy Plex last year. He received a nrovisional 35-year prison term. Director of Central Intelligence, The sentence could be reduced he had ordered. agency ma- later if Hunt is found to have terials made available to Hunt. cooperated. in the current - But he said that a few days Watergate investigations. He after doing so, he reported his ,has also admitted taking part in the office burblary of Dr. actions to Mr. Helms and "he. Elleberg's former psychiatrict in assented to what I had done." Los Angeles. , The general's account of General Cushman,- resplend- C.I.A. involvement with Hunt ent in full uniform with row was -made in a tarea.page upon row of battle ribbons and ? sworn affidavit that he per- a sharpshooter's medal, marched sonally presented today to three from one Congressional corn- separate; Congressional corn- mittee to another for what mittees. He cut short a Euro- turned out to be day-long in- pean tour to appear before the terrogations. He appeared- first before a committees. Helms's Rule Widened . His comments abbot having informed his superior of what he had done would appear to House Armed Services Subcom- mittee, headed by Lucien N. Nedzi, Democrat of Michican; then before a Senate -appropria- tions subcommittee, headed by John L. McClellan, Democrat of indicate that Mr. Helms was Arkansas; and finally before the more fully aware of agency in- Senate Armed Services Com- volvement in the Watergate mittee, of which Stuart Syming- and pentagon ? papers cases ton, Democrat of Missouri, is than had previously been sug. temporary chairman. gested. Domestic Moves Studied Earlier this week, current! All three committees are in- C.I.A. officials disclosed that quiring into the issue of agency preparation of a per- ;whether the C.I.A. exceeded its sonality assessment of Dr. Ells- ;authority by becoming involved berg, a defendant in thAfrisito4d (g)4TA: tions. The agency' charter pre- cludes it from internal security un ct ions. The committee meetings were closed, but the general's sworn affidavit was made public after each session. Senator McClelan said that his appropriations subcommit- tee hoped to hear testimony next week from Mr. Helms, who is in Iran. Senator Henry M. Jackson, Democrat of Washington, after hearing the Cushman testimony 'before the Armed -Services Com- mittee, said, "I don't think the C.I.A. violated the law. I think the White House violated the law." Senator Sympington, too, in- dicated that he believed that the While House request for the agency's assistance was improper. In his affidavit, General Cushman said that on July 7, 1971, Mr. Ehrlichman called him from the White House and said that Hunt had been made a consultant on security mat- ters. He said that Mr. Ehrlich- man asked that the agency give Hunt some assistance. General Cushman also noted that Hunt was "a highly res- pected and honorably retired' C.I.A. employe of 20 years' serv- ce. The general said that he was unable to discover any details of the plan. Be said Hunt told him that he was under White House orders not to reveal the nature or scope of the planned interview and not to reveal the fact that he even worked for the White House. "He did assure me, however, the general said, "that lie was working to be a good purpose in the interests of the country." About a month after giving Hunt a wig and other disguise materials and various equip- nent anti alias identification papers, the general said, he oundf that Hunt "was becoming lore and more unreasonable and demanding" and going far eyond what seemed necessary or "a one-time interview." At that point, the general said, he stopped "all relation- ships" with Hunt and so in- ormed Mr. Ehrlichman. He said he also told Mr. I h'hrlichman "that in my opinion, dr. Hunt was of questionable udgment" and with that left Mr. Ebrlichman to do "as he demmed proper." General Cushman, a military aide to President Nixon when Mr. Nixon was Vice President, said that he has known Mr. Ehrlichman for 10 or 12 years and respected him highly. "I also knew that he [Mr. Ehrlichman] was one of the three chiefs of staff, as it were, to the President and that there- fore he spoke with the authoriy ; of the President's name," Gen- ? leral Cushman said. - The general said he was aware that leaks of inteligence information weregreatcon- cern within the government at that time and that Mr. Ehrlich- man had been named "willin . the White House as the man ' in charge of stopping security leaks and overhauling the se- curity regulations." Orders for Interview In view of that, the general continued, he concluded that Hunt had been hired by the White House to act in the security field and that the C.I.A. was being ordered to assist him. He said that Hunt appeared in his office on July 22, 1971, and said that he had "a very sensitive one-time interview that the White House wanted. him to hold" but that he dared.. not reveal his identity. 000200010002-2 Approved FoNWease 20algt tiAr1461143Ab4KV50200010002-2 May 1973 I Nixon friend 'gave '.go-a.; 'ead for CI -part in break-in ? i By, RICHARD BEESTON in Washington GENEPIAL.ROBERT CUSHMAN, a close friend and pr?g?f President Nixon, was reported yesterday to have sanctioned Central Intelligence Agency assistance for ,a burglary committed by , two,: convicted Watergate,. conspirators when he was deputy 'director of the C IA. , mer director' of the CIA, Mr ' Richard Helms, now American Ambassador to 1ran, will be called to testify before the Senate' Watergate investigation committee.- ' .A ' possible defence of the alleged CIA role in the bur- glary of the psychiatrist's office is a 'section of the National Security Act which authorises the agency to protect "intelli- gence sources and methods from unauthorised disclosure." The Government prosecution in the Ellsberg.case which has. become to be .known as the pentagon Papers trial, claims that Ellsberg carried out an ille- gal theft and 'Publication of a secret . Pentagon study of the Vietnam war. ,Howard Hunt has stated that a former member of the White House staff, Mr Egil Krogh. was Put incharge of a White. House team of "plumbers" to stop I leaks of information after publi- cation Of the Pentagon papers. - Chief adviser According to the New York Times ? report, Gen. Cushman acted at the request of Mr Nixon's chief domestic affairs .adviser, ?John Ehrlichman, who resigned lost week. Gen. Cushman was for four years chief adviser to Mr Nixon on .national security when Mr Nixon was vice-president. When Mr..Nixon became President, he appointed Gen. 'Cushman. deputy director of the CIA, later making him. a four-star. General? and Commandant of the Marine OPITs.? .In ,a . Grand Jury testimony, H owdrd 'Hunt, one.. of the Water- gate conspirators, said .he had used CIA disguises, fake identi fication papers and a CIA "safe }Muse" in Washington .to pre- pare for the operation. The -allegations. concerning_ Cushman raisAporoVetliFor Relea hood that both. he. and the for- Gen : Cushman is a Marine Corps, 'commandant ' and a niember of the Joint Chiefs of Staff. , ? ? , . . ? The New 'York Times yesiterday that Gen. Cushman authorised the use of C I A. material and assist- ance for the break-in of Daniel Ellsberg's , psychia- trist's office, had been ques- tioned. by the- Federal Bureau 'of' Investigation and had accepted full responsibility for his decision. sThe allegation was made be- fore yesterday's denial by the White House that President Nixon knew in advance of the Watergate bugging, that he agreed to any cover-up or agreed to offer clemency to any of the convicted defendants in return for silence at their trial. slaffiti-oepaif: ? Hoover '" blackmail " Time magazine claimed yes- terday that .the late Mr J. rdgar Hoover, who was director or the FBI, had used records Of wiretaps allegedly ordered by President Nixon to "blackmail" the White House into abandon- ing attempts to have him removed from office. 'The magazine said that Mc' Nixon had asked the B I early in 1969 to tap the telephones of ? two. New. York Times reporters and that Mr Hoover demanded and received written authorisa- tion from Mr John Mitchell, the former Attorney-General. In 1971, the Administration derided to pressure the "irascible" Mr Hoover out of his post. Angered, Mr Hoover. called Richard Kleindienst, then Mr Mitchell's deputy, ? and threatened to reveal the "cm-- barrassing taps:" No further move against Mr. Hoover was made,' but, in the late spring of ,1971, he dis- covered all his/records of the Wiretaps on reporters had dis- appeared. IA-RDP84-00499R000200010002-2 Approved For ReleopvcAkirti?1647: UVRDP84-00499ROOW0010002-2 1 1 MAY 1973 BY JEREMIAH O'LEARY St ar-News Staff Writer ? Gen. Rpbert E. Cushman Jr. admitted today he did not use nor- mal caution in permitting the Cen- tral Intelligence Agency to assist E. Howard Hunt Jr. in a mission which led to a burglary. Because the assistance was sought by White House aide John Ehrlichman, and because Cushman said he assumed Ehrlichman was speaking for President Nixon, he 'said he did not use the caution he would have in other circumstances. Cushman, nOw Marine Corps commandant, was deputy director of the CIA at the time Ehrlichman sought help on a mission Hunt was performing for the White IIouse in following up the leak of the secret Pentagon Papers. IN A SWORN affidavit given to a House Armed Services subcom- mittee today, Cushman said Ehrlichman's first teleilhone call to him about Hunt was on July 7, 1971. At the time, the general said, he regarded Ehrlichman as speaking for the President. The general insist- ed he never learned any details of Hunt's mission. The mission resulted in the bur- glary in September, 1971', of the Los Angeles offices of a psychiatrist who had been athrising Dr. Daniel Ells- berg, accused of stealing the Penta- gon Papers. Cushman told the subcommittee he never knew Hunt intended to use CIA technical assistance for a do- mestic operation and did not learn about the burglary until reading about it in recent newspaper stories. 1-10WEVER, Cushman told the subcommittee he did eventually consider Hunt to be of "questionable judgment" based on infor- mation given to him by CIA officials he had assigned to assist Hunt. Cushman's affidavit said, "As soon as I found out that the individual in- volved, Mr. Howard Hunt, was not exercising proper judgment and was exceed- ing what I consider prop- er, I so reported it to his superior in the White House and to Mr. Helms (then CIA director Rich- ard Helms). This stopped all further dealings with Mr. Hunt." Gen. Cushman als:: appeared before a subcom- mittee of the Senate Appro- priations Committee. After the closed hearing, Sen. John L. McClelland, D- Ark., the committee chair- man, told reporters: "I don't think that this was a function that the CIA should have performed." Cushman, he said, told the senators that he would never do such a thing again. The House subcommit- tee, headed by Rep. Lucien Nedzi, D.-Mich., also ques- tioned CIA director James Schlesinger, newly nomi- nated to be secretary of Defense, and CIA veteran, William E. Colby, chosen to become CIA director. Cushman's affidavit de- clared that the CIA broke off all connection with Mint on Aug. 27, 1971. THE AFFIDAVIT, sworn before a notary pub- lic in Fairfax County this morning, declared: "I wish to state unequiv- ocally that I had no knowl- edge before or after the fact of any illegal or unethical acts. About July 7, 1971, Mr. John Ehrlich- man of the White House called me and stated that Howard Hunt was a bona fide employe, a consultant see me and request assist- ance which Mr. Ehrlich- man requested that I give. "I wish to explain here that the CIA comes under the authority of and works for the National Security Council which is, of course, the President him- self, advised by such as- sistants as are named in the National Security Act of 1947. I had known Mr. Ehrlichman for a good 10 to 12 years and respected him highly as a man of complete honesty and de- votion to duty. I also knew that he was one of the three chiefs of staff, as it were, to the President and that therefore he spoke with the authority of the President's name." CUSHMAN'S affidavit said the national security aspects of intelligence leaks were of great con- cern at the time and that Ehrlichman was the White House man in charge of stopping security leaks and overhauling security regulations. "From these facts," Cushman declared, "I then drew the following conclusion, which I believe any reasonable man would have reached, namely, that Howard Hunt had been hired by the White House to act in the securi- ty field and that the CIA was being ordered to as- sist him." Cushman said Hunt vis- ited him in his CIA office on July 22, 1971 and stated oved For Release would comeT tnat unt ' C or-it ft..nued_ 2 Approved For Rel a he had a very sensitive one-time interview that the White House wanted him to hold with a person whose ideology he was not too sure of and that he dare not reveal his (Hunt's) true identity. "The White House there- fore wanted assistance from our technical serv- ices in providing him with an identity which would be other than his own." Cushman's ?sworn state- ment continued, "I was not able to elicit any de- . tails of the interview which he stated he had to conduct and he said that on White House orders he was not to reveal' the na- ture and scope of this in- terview no the fact that he worked. for the White House." , HUNT ASSURED Cush- man, according to the affi- davit, that he was working in the interest of the coun- try. "Upon his assurance that this was, in his words, a 'one-time operation ? in and out'," Cushman de- clared, "I authorized the Technical Services Divi- sion to give him the neces- sary papers and disguise to enable him to conduct this interview so that he would not be known nor could he be recognized later. "To the best of my recol- lection, I reported this a few days later to Mr. Helms, and he assented to what I had done." But Cushman said late in August 1971 he was told that Hunt was "becoming more and more unreasona- ble and demanding and was attempting to go far beyond the scope of the original instruction." I therefore immediately ,stopped all relationships with Mr. Hunt and gave instructions to that effect to the agency. "I called Mr. Ehrlich- man on that matter on Aug. 27, 1971, and I said that we cannot give such assistance because it might possibly be con- strued as involving the agency in improper activi- ties. I then explained the constraints on the agency and finally advised Ehr- 2001/09/04 : CIA-RDP84-00499R0R100010002-2 ichman that the agency would not have anything further to do with Hunt. I also advised him that in my opinion Hunt was of questionable judgement. He should know better than to even ask for such support. Therefore I made this recommendation to Mr. Ehrlichman for him to do with as he deemed proper." Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 STILL CHANCY ? Partly cloudy tonight with possibil- ity of showers. Low tonight near 60. Yesterday's high, 85 at 2 p.m. Today's low, 62 at 3:10 a.m. Details: Page B4., ? 41'121st Year. No. 150 Copyright e 1973 She Evening Star Newspaper Oa and ITA WASHINGTON p-e-k DA I LYiii?AL x WASHINGTON, D.C., WEDNESDAY, MAY 30, 1973 ?88 PAGES ? ? SAYS NIXON REQUESTED MEET! G o Star-News Staff Writer 2 The high-level White House meeting rt.)six days after the Watergate break-in last summer at which CIA officials were told to curb an FBI investigation "was held at the President's request" former White House aide John D. Ehr- lichman said today. Ehrlichman, speaking to reporters By OSWALD JOHNSTON after giving Senate testimony, insisted that the meeting was held to make sure that national security would not be compromised by a "vigorous" FBI investigation. Ehrlichman did not link President Nixon directly with an order given at that meeting that the FBI be request- ed to hold up a probe of campaign funds "laundeved" in Mexico City. ii Recapitulating nearly three hours of ? closed-door testimony before the Sen- ate Appropriations subcommittee on intelligence operations, Nixon's for- mer domestic policy chief made these additional points: He denied that he or White House aide H. R. Haldeman had made any "improper suggestions" to CIA offi- cials that would lead former Acting o ? FBI Director Patr warn Nixon tha3 mem were seeking mort President by doverini incident. Ehrlichman stra that former White Hot W. Dean III was the referring to, but refu details. Ehrlichman denied z. and p--Ni WASHINGTON re-k DAI LyigrA NIGHT FIN L n7-1 X WASHINGTON, D.C., WEDNESDAY, MAY 30, 1973 ?88 PAGES NIXON REQUESTED MEETING stimorg, insisted is helt to make curityaould not "vigogous" FBI t linkresident n order given at FBI be request- be of campaign Mexico City. 1. Phone 484-5000 CIRCULATION 484-3000 CLASSIFIED 484-6000 10 Cents Recapitulating nearly three hours of ? closed-door testimony before the Sen- ate Appropriations subcommittee on intelligence operations, Nixon's for- mer domestic policy chief made these additional points: He denied that he or White House aide H. R. Haldeman had made any "improper suggestions" to CIA offi- cials that would lead former Acting FBI Director L. Patrick Gray III to warn Nixon that members of his staff were seeking "to mortally wound" the President by covering up Watergate incident. Ehrlichman strongly suggested that former White House counsel John W. Dean III was the man Gray was referring to, but refused to give any details. Ehrlichman denied any recollection of having urged former CIA deputy director Gen. Robert E. Cushman to help out Watergate conspirator E. Howard Hunt Jr. during the summer of 1971. Cushman has filed a sworn af- fidavit naming Ehrlichman as the man who smoothed the way for CIA assist- ance to Hunt, who was preparing for a break-in of the office of Daniel Ellsberg's psychiatrist. Approved For Rapase 2001/09/04: CIA-RDP84-00499R41,0200010002-2 WATERGATE AND THE CIA One of the great mysteries arising out of the tangled Watergate scandal is this: How was the Central Intelligence Agency drawn into a web of domestic political intrigue? The massive espionage apparatus of the CIA was set up to discover and counter foreign threats to U. S. security. By law, the supersecret agency is barred from internal-security functions. Yet sworn testimony before Senate committees has included allegations that: ? White IIouse officials attempted to get CIA co-operation in concealment of one aspect of the Watergate case. ? ? A White House aide tried unsuc- cessfully to persuade the CIA to put up bail and salary money for the seven men pose unrelated covert activities of the CIA or of a special White House investi- gative unit. "It now appears," the President add- ed, "that there were persons who may have gone beyond my directives, and sought to expand on my efforts to pro- tect the national-security operations in order to cover up any involvement they or certain others might have had in Watergate." FBI investigation. Before the Presi- dent issued his statement, this testimony had been developed on Capitol Hill: Testifying before the Senate Armed Services Committee, Lt. Gen. Vernon A. Walters, Deputy Director of the CIA, said that at a White House meeting on the Senate Foreign Relations Committee that he had attended the June 23 meet- ing along with General Waiters. Mr. Helms quoted Mr. Haldeman as saying it was "decided at the White House" that General Walters should go to L. Patrick Gray III, who was then act- ing Director of the FBI, and tell him that continued investigation of the Mex- ican financial angle might jeopardize CIA operations in that country. General Walters said he carried the White House message to Mr. Gray. But, he continued, after he and Mr. Helms had determined that no CIA operation in Mexico would be endangered by the FBI probe, he gave that information to Mr. Gray. Both Mr. Helms and General Walters testified that the CIA rejected a request by John W. Dean III, then White House counsel, that the spy agency pay bail and salaries for the Water- gate conspirators. Pressure alleged. On May 22, convicted conspirator James W. McCord, Jr., told the Senate investigating com- mittee that he had been sub- jected to intense pressure to agree to what be called a "ruthless" attempt by the White House to pin blame on the CIA. Mr. McCord said he was convinced that Mr. IIelms was fired as CIA Director to "lay the foundation" for blaming the CIA for Water- gate. He said he was told by his attorney, Gerald Alch, that James R. Schlesinger, who replaced Mr. Helms, would "go along" with the scheme. Mr. Alch denied such a statement. Mr. Schles- inger said. "No one ever made any such suggestion to me." When he testified before the Foreign Relations Committee, Mr. Helms was asked whether his refusal to co-operate in a Watergate cover-up cost him his cIA job. He replied: "I don't know." Mr. Helms was asked why the CIA had supplied equipment used by a White House investigative team?which included Watergate conspirators E. How- ard Hunt and G. Gordon Liddy?in the 1971 burglary of the office of a psychia- trist who had treated Daniel Ellsberg, a defendant in the Pentagon Papers case. Mr. Helms replied that "nobody dreamed the White House was going to be undertaking burglaries" and said that litten91401100130 Diesident has not been arrested for the break-in and bugging of Democratic national headquarters in Washington's .Watergate complex on Juno 17, 1972. Also, a convicted conspirator has tes- tified that be was pressured to agree to a plan to blame the CIA for the Water- gate plot. White House position. President Nixon, in the statement ho issued on May 22, cast some light on matters af- fecting the CIA. The President said that within a few days of the Watergate break-in, "I was advised that there was a possibility of CIA involvement in some way." He did not divulge the source. Mr. Nixon also said that he instructed his top aides, H. II. Haldeman and John D. Ehrlichman?who quit their White House jobs on AprilA the Watergate i vPcti ?USN&WR Photos White House aides intervened in Watergate inquiry, according to officials at CIA headquarters, above. June 23, 1972, he had been directed by Mr. Haldeman to try to block an FBI investigation of Nixon campaign funds channeled through Mexico. The funds have been linked to financing of the Watergate burglary. Senator Stuart Symington (Dem.), of Missouri, acting chairman of the Com- mittee, made public a memo written by General Walters after the June 23 meet- ing, which quoted Mr. Haldeman as say- ing "it is the President's wish" that the Mexican probe be blocked. Later, however, General Walters told a House Armed Services subcommittee that he was not sure he had been told "it is the President's wish," but that he had put it in the memo because "the thought was implicit in my mind." Mr. Helms's testimony. Richard IrothitelepgieVY/OROV?C1fitfk LTS/11C-141 ex- er an now Am assador to ran, to a crime untnair y recently." James McCord said he was told high officials approved Watergate "bugging." John Caulfield relayed clemency offer he thought came from President himself. Bernard he was ?Photos: USN&WR, Wide World, UPI L. Barker testified he thought 11 A I's ig GATE STANDS NOW In charges made?and charges denied?the issues are drawn. The test ahead: Who is telling the truth? who is really to blame for the Watergate mess? The complex?and often confusing? issues in the Watergate case are start- ing to come into clearer focus, after two weeks of Senate hearings and a state- ment by the President that is virtually unprecedented in American history. Insinuations of direct complicity by President Nixon in the Watergate scan- dal have been made by several witnesses under oath at the Senate hearings. The President, in his statement of May 22, denied any prior knowledge of the break-in and bugging of Democratic Party headquarters last June 17 or any part in a subsequent cover-up. But he admitted: "With hindsight, it is apparent that I should have given more heed to the warning signals I received along the way about a Watergate cover-up and less to the reassurances. . . . "I should have been more vigilant." Charges have also been made, under oath, that involve high officials in the Nixon Administration. Where the buck stops. Still to be decided is where final responsibility is to be fixed for the worst governmental scandal in decades. Many more Weeks of Senate commit- tee hearings lie ahead. A federal grand jury, under leadership of a new special prosecutor, is pushing ahead with its separate inquiry. U. S. Attorney Harold H. Titus, Jr., announced on May 24 that indictments are expected in 60 to 90 days. As the investigations widen, serious conflicts in testimony have developed. Some charges made by some witnesses under oath have been denied by others under oath. Senator Howard II. Baker, Jr. (Rep.), of Tennessee, vice chairman of the sev- en-Senator investigating committee, de- scribed the committee's dilemma on May 24 in these words: "We're not judges, and we're not a jury. "But we most assuredly are after they facts, the truth, and it's now apparent that we're going to have to try to recon- cile differences in testimony . . . to try to find where the truth lies." phases of the wide-ranging investiga- tions, are key questions: * What was the role of President Richard Nixon in this affair? Any testimony about his personal in- volvement is, so far, second hand, often fuzzy in nature. Witnesses have testified that someone in the White House tried to block effec- tive investigation of the bugging. John J. Caulfield, a former White House aide, told Senate investigators on May 22 that he offered executive clem- ency to convicted Watergate conspira- tor James W. McCord at the direction of John W. Dean III, who at that time was the President's legal counsel. This offer of clemency, Mr. McCord testified earlier, was dependent upon his John Dean was quoted as saying clemency offer came from "the top." agreement to plead guilty and remain silent about involvement of higher-ups. In describing his conversation with Mr. Dean about the clemency offer, Mr Caulfield testified: "I said, 'Do you want me to tell him [Mr, McCord] it comes from the Presi- dent?' He [Mr. Dean] said words .to the effect, `No, don't do that, say that it comes from way up at the top.'" Mr. McCord had testified earlier that Mr. Caulfield told him "the President of acting for "national security." Here, as they emerged in various the United States" knew about their proved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 U. S. NEWS & WORLD REPORT, Juno 4, 1973 Jo I HSgle- IP ? ? ? ? ; ? ?is ? ? " 0 NIXON: SEVEN ANSWERS TO WATERGATE CHARGES Text of an official statement by President Nixon, released by the White House on May 22, 1973: Recent news accounts growing out of testimony in the Watergate investigations have given grossly misleading im- pressions of many of the facts, as they relate both to my own role and to certain unrelated activities involving na- tional security. Already, on the basis of second and third-hand hearsay testimony by persons either convicted or themselves under investigation in the case, I have found myself accused of involvement in activities I never heard of until I read about them in news accounts. These impressions could also lead to a serious misunder- standing of those national-security activities which, though totally unrelated to Watergate, have become entangled in the case. They could lead to further compromise of sensitive national-security information. I will not abandon my responsibilities. I will continue to do the job I was elected to do. In the accompanying statement, I have set forth the facts as I know them as they relate to my own role. With regard to the specific allegations that have been made, I can and do state categorically: 1. I had no prior knowledge of the Watergate op- eration. 2. I took no part in, nor was I aware of, any sub- sequent efforts that may have been made to cover up Watergate. '3. At no time did I authorize any offer of executive clemency for the Watergate defendants, nor did. I know of any such offer. 4. I did not know, until the time of my own inves- tigation, of any effort to provide the Watergate defendants with funds. 5. At no time did I attempt, or did I authorize others to attempt, to implicate the CIA in the Watergate matter. 6. It was not until the time of my own investiga- tion that I learned of the break-in at the office of Mr. Ellsberg's psychiatrist, and I specifically authorized the furnishing of this information to Judge Byrne. 7. I neither authorized nor encouraged subordinates to engage in illegal or improper campaign tactics. In the accompanying statement, I have sought to provide the background that may place recent allegations in per- spective. I have specifically stated that executive privilege will not be invoked as to any testimony concerning possible criminal conduct or discussions of possible criminal con- duct, in the matters under investigation. I want the public to learn the truth about Watergate, and those guilty of any illegal actions brought to justice. The President's accompanying statement appears, in full text, on pages 96-99. meeting and that "at a future meeting there would likely be a personal mes- sage from the President himself." Mr. Caulfield insisted, however, that he did not recall "saying anything about the President." IIe testified: "I specifically never spoke to the President of the United States and have no knowledge of my own as to whether he personally had endorsed this offer or, indeed, whether anyone had ever dis- cussed it with him." On May 23, under close questioning by members of the investigating com- mittee, Mr. Caulfield was asked what was in his mind when Mr. Dean told him the clemency offer came "from way up at the top." "Well, sir, in my mind I believed that he was talking about the President," Mr. Caulfield replied. "In my mind, I felt that the President probably did know about it." ? Mr. Nixon's specific denials appear on this page. his full statement explain- ing his actions throughout the Water- gate affair begins on page 96. ? ? Did some of President Nixon's high- est appointees and closest advisers ap- prove and abet the Watergate raid? Mr. McCord tejamloltoted/PcOlielMase fellow conspirators flat the bugging ma the approval of: John N. Mitchell, who resigned March 1, 1972, as Attorney General to become director of the Nixon re-election campaign; Jeb Stuart Magrud- er, who was deputy campaign director, and John Dean, who was then legal coun- sel to the President. Senate committee witnesses also have insinuated that H. R. Haldeman and John D. Ehrlichman?who until recently were top White House aides?were in- volved in the Watergate cover-up. All these men have denied guilt. All except Mr. Dean have testified before the federal grand jury which has been Jeb Magruder. Named as one of those who approved the break-in. investigating the case for more than two months, and all are expected to be called before the Senate committee. ? Was there a White House plot to lay the blame for Watergate on the na- tion's supersecret spy organization, the Central Intelligence Agency? Mr. McCord, in his sensational testi- mony at the Senate hearings, charged that there was such a plot and that he refused to go along with it. "There was no indication that this was a CIA operation," he testified. L. Patrick Gray III, former acting Di- rector of the Federal Bureau of Investi- gation, in his testimony before a Senate appropriations subcommittee on May 24, suggested another role of White House aides involving the CIA. As quoted by the subcommittee chair- man, Mr. Gray warned President Nixon last July 6 that: "I feel that people on your staff are trying to mortally wound you by using the CIA and FBI and by confusing the question of CIA interest in, or not in, people the FBI wishes to interview." In previously disclosed testimony, it had been related that White House aides tried to get the FBI to call off some tigt?imtiptns because they would FittLoperations of the CIA in Mexico. After listening to Mr. Gray's , (continued on next page) Its 1/Yr1 I L.I %Uri I L. IIN.JYY {continued from preceding page] Approved For R warning Mr. Gray reported, Mr. Nixon v $199,000, Mr, Sloan related, was given tional security, of high sensitivity, involv- to G. Gordon Liddy, one of the seven in a traitor who had given information 9,.?,le ,atiej04*-10171/NaNESPWADP18-41-06499R00620401 60112 sr"?that of the Soviet Mr. Sloan who was on the White I.741ffin. Mr. Barker was followed to the wit- ness stand on May 24 by Alfred C. Bald- win III, a former Central Intelligence Agency agent who told of monitoring the Watergate wiretap from a room in a nearby motel. Mr. Baldwin refused, however, to dis- close what he had monitored?relying on a federal law which forbids disclosures of such wiretap information. Related actions. While the Ervin committee ground on with its hearings, there were developments on other Water- gate fronts. The Senate, on May 23, confirmed by a- vote of 82 to 3 the President's nomina- tion of Elliot Richardson to become the new Attorney General. That cleared the Way for Archibald Cox?Mr. Richardson's choice?to take over as special prosecutor of the Water- gate investigation that is now unfolding before the grand jury. The Senate acted after assurances by Mr. Richardson that Mr. Cox would have "full authority" to conduct an independ- ent investigation. It was announced the next day that the team of federal prosecutors who have been conducting the grand-jury investigation will stay on the job?a least for a while?under the direction of Mr. Cox. In predicting indictments within 60 to 90 days, U. S. Attorney Harold H. Titus, Jr., also announced that one key figure in the Watergate scandal will. plead guilty and testify without immuni- ty for the prosecution. He did not iden- tify that person. The Senate hearings at times have be- come enmeshed in a tangle of contra- dictory testimony on what appeared to be side issues. There were conflicts between lawyer Gerald Alch and his former client, Mr. McCord, as to what Mr. Alch had ad- vised on the nature of the trial defense. Another conflict developed between Mr. Alch and Bernard Fensterwald, who succeeded him as Mr. McCord's attorney. But the committee refused?for the present at least?to give Mr. Fensterwald a chance to testify in rebuttal to Mr. "The committee does not intend to get bogged down with a controversy between lawyers," said Senator Ervin. The Ervin committee, like the grand jury, is after more important things: Who is telling the truth about the Watergate incident itself?and who is really to blame for that scandal which has rocked the U. S. Government? At the rate things were going, it was likely to be many months before those last: year was politic aA liaison far White "I rs told" Ir. Barker rehrd, that westions were fully answered. only paused, then replied: "Pat, you just continue to conduct your aggressive and thorough investigation." After that, how- ever, Mr. Gray was quoted as saying the harassment of his investigations ceased. ? Was Watergate only the "tip of an iceberg"?the visible part of wide-scale, undercover operations by Nixon cam- paign workers? Senator Sam J. Ervin, Jr. (Dem.), of North Carolina, has promised that the Senate committee he beads will get into that question in considerable depth' before its long bearings are ended. Al- ready, there have been published reports House staff before becoming treasurer of the campaign finance committee, re- signed from that latter post last July?in protest, he said, against some ?of the things he was asked to do. From all this, it is clear how far afield from the Watergate itself the in- vestigations eventually will go. Bay of Pigs men. On the Water- gate break-in itself, the Senate commit- tee drew details from one of those caught in the Democratic headquarters on June 17?Bernard L. Barker. Mr. Barker, a Cuban-born American citizen, testified on May 24 that he took ?USN&WR Photo Senate investigators. Vice Chairman Baker, Chairman Ervin; Chief Counsel Samuel Dash confer as committee runs into a problem in its hearings on Watergate case. of "dirty tricks" against Democratic can- didates, allegedly financed by Nixon campaign funds. The General Accounting Office?an investigating agency of Congress?has charged that large amounts of money contributions have not been reported by the Nixon re-election committee, as re- quired by law. IIugh W. Sloan, Jr., former treasurer of the re-election committee, has testified in a civil-suit deposition that be gave $250,000 to Herbert W. Kalmbach, Mr. Nixon's personal lawyer. Mr. Kalmbach, according to published reports, has told the Federal Bureau of Investigation that he gave nearly $40,000 of that to Donald H. Segretti, a California lawyer who is alleged to have played a key role in various acts of political espionage and sabotage against the Democrats in last year's campaign. Another $350,000, according to Mr. Sloan, went to Gordon Strachan who part in the raid because he believed it was "a matter of national security." He said he understood the raiders were look- ing for evidence that the Democratic Party was receiving contributions from leftist organizations bent on violence or from the Communist Cuban Government of Fidel Castro. No such evidence was found, he said. Mr. Barker and three Cuban-Americans caught with him were all veterans of the Bay of Pigs invasion of Cuba in 1961. Asked if they had participated in the Watergate raid in hopes of obtaining "later assistance for Cuban liberation," Mr. Barker answered: "To us, this was our prime motivation." Mr. Barker admitted he also took part in a 1971 break-in of a California psy- chiatrist's office, seeking treatment rec- ords of Daniel Ellsberg. That incident contributed to a judge's dismissal of all charges against Mr. Ellsberg in the Pentagon-papers case. pprove For Release 001/00/0 : CIA-RDP 4-00499R 00200010002-2 18 U.S. NEWS & WORLD REPORT, Juno 4, 1973 Approved For R,41,pase 2001/09/04: CIA-RDP84-00499R000200010002-2 WATERGATE AND THE CIA One of the great mysteries arising out of the tangled Watergate scandal is this: How was the Central Intelligence Agency drawn into a web of domestic political intrigue? The massive espionage apparatus of the CIA was set up to discover and counter foreign threats to U. S. security. By law, the supersecret agency is barred from internal-security functions. Yet sworn testimony before Senate committees has included allegations that: ? White House officials attempted to get CIA co-operation in concealment of one aspect of the Watergate case. ? A White House aide tried unsuc- cessfully to persuade the CIA to put up bail and salary money for the seven men pose unrelated covert activities of the CIA or of a special White House investi- gative unit. "It now appears," the President add- ed, "that there were persons who may have gone beyond my directives, and sought to expand on my efforts to pro- tect the national-security operations in order to cover up any involvement they or certain others might have had in Watergate." FBI investigation. Before the Presi- dent issued his statement, this testimony had been developed on Capitol Hill: Testifying before the Senate Armed Services Committee, Lt. Gen. Vernon A. Walters, Deputy Director of the CIA, said that at a White House meeting on the Senate Foreign Relations Committee that he had attended the June 23 meet- ing along with General Walters. Mr. IIelms quoted Mr. Haldeman as saying it was "decided at the White House" that General Walters should go to L. Patrick Gray III, who was then act- ing Director of the FBI, and tell him that continued investigation of the Mex- ican financial angle might jeopardize CIA operations in that country. General Walters said he carried the White House message to Mr. Gray. But, he continued, after he and Mr. Helms had determined that no CIA operation in Mexico would be endangered by the FBI probe, he gave that information to Mr. Gray. Both Mr. Helms and General Walters testified that the CIA rejected a request by John W. Dean III, then White House counsel, that the spy agency pay bail and salaries for the Water- gate conspirators. Pressure alleged. On May 22, convicted conspirator James W. McCord, Jr., told the Senate investigating com- mittee that he had been sub- jected to intense pressure to agree to what he called a "ruthless" attempt by the White IIouse to pin blame on the CIA. Mr. McCord said be was convinced that Mr. Helms was fired as CIA Director to "lay the foundation" for blaming the CIA for Water- gate. He said he was told by his attorney, Gerald Alch, that James R. Schlesinger, who replaced Mr. Helms, would "go along" with the scheme. Mr. Alch denied such a statement. Mr. Schles- inger said. "No one ever made any such suggestion to me." When lie testified before the Foreign Relations Committee, Mr. IIelms was asked whether his refusal to co-operate in a Watergate cover-up cost him his IA job. He replied: "I don't know." Mr. Helms was asked why the CIA had supplied equipment used by a White House investigative team?which included Watergate conspirators E. How- ard Hunt and G. Gordon Liddy?in the 1971 burglary of the office of a psychia- trist who had treated Daniel Ellsberg, a defendant in the Pentagon Papers case. Mr. Helms replied that "nobody dreamed the White House was going to be undertaking burglaries" and said that arrested for the break-in and bugging of Democratic national headquarters in Washington's Watergate complex on Juno 17, 1972. Also, a convicted conspirator has tes- tified that he was pressured to agree to a plan to blame the CIA for the Water- gate plot. White House position. President Nixon, in the statement he issued on May 22, cast some light on matters af- fecting the CIA. The President said that within a few days of the Watergate break-in, "I was advised that there was a possibility of CIA involvement in some way." He did not divulge the source. Mr. Nixon also said that he instructed his top aides, H. R. Haldeman and John D. Ehrlichman?who quit their White House jobs on April the Watergate invest ?USN&WRPhotos White House aides intervened in Watergate inquiry, according to officials at CIA headquarters, above. June 23, 1972, he had been directed by Mr. Haldeman to try to block an FBI investigation of Nixon campaign funds channeled through Mexico. The funds have been linked to financing of the Watergate burglary. Senator Stuart Symington (Dem.), of Missouri, acting chairman of the Com- mittee, made public a memo written by General Walters after the June 23 meet- ing, which quoted Mr. Haldeman as say- ing "it is the President's wish" that the Mexican probe be blocked. Later, however, General Walters told a House Armed Services subcommittee that he was not sure he had been told "it is the President's wish," but that he had put it in the memo because "the thought was implicit in my mind." Mr. Helms's testimony. Richard 0A4natape,wicifeettak has not been 99Ire44n.Mrairly recently." Alie OH ritiligif_Lysident Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 SPYING AT WHITE HOUSE ORDERS When It Started and Why (-atm or THE Watergate scandal?al- most daily?comes a steady torrent Df fresh revelations about spying, bur- eary and wiretapping ordered by men in the White House. It was President Nixon, starting in 1969, who personally ordered certain ands of espionage inside the U. S. be- muse of what he called the overriding iced to safeguard national security. These orders, testimony makes clear, vere interpreted in various ways by ubordinates, leading to wiretaps of Coy- rnment officials and private citizens, lurglarizing of offices?and eventually, s an offshoot, to the Watergate bugging rid break-in itself on June 17, 1972. Mr. Nixon, in a statement of May 22, aid he could 'understand that the em- basis he put on "the crucial importance I protecting the national security" Duld have caused "highly motivated in- ividuals" to do things he would have isapproved had he known about them. The President's critics assert that the omestie spy system developed by the Mite House to protect secrets was ill- ally put to political uses?for which lame is still to be fixed. Big surprise. Upshot of it all: Now ifolding and corning into perspective a wide range of extraordinary domes- -intelligence operations that have come a big surprise to many Americans. Senator Sam J. Ervin, Jr., head of the Inate's Watergate inquiry, declared May 31 that the nation would be hocked" if all details of a White use plan to "spy on Americans" were ide public. Ile said that secret docu- 3nts which he had seen reveal a "Ce- llo mentality" at top levels of the Nixon Iministration, outlining "an interagen- operation to spy on Americans, espe- aly those who disagreed with the Ad- nistration." Some in Congress are accusing the hite House of adopting "pit.W.ratia tliotis anti of pulling a natTAKI-secur- ftrii-t=;. if not all?of the activity as necessary. They insist that the President's inten- tions were in the nation's best interests, in view of the "climate" of the time. The focus is on three national-security activities originating in the White House. In chronological sequence, they were: 1. A program of wiretapping, begun In 1969, carried out by the Federal This plan evolved at a time when antiwar riots and other violence were erupting on hundreds of campuses. The plan was approved by Mr. Nixon but was shelved when the Director of the FBI, the late J. Edgar Hoover, opposed it. Mr. Nixon reported that his approval was withdrawn before the plan was im- plemented. However, the Associated Press reported on May 30 that "sources close to the Watergate investigation say the plan was put at least partially into practice." The sources insisted that secret agents intercepted mail, tapped telephones, audited in- come-tax returns and planted informers. The ex- tent of this operation is not fully known. Another source reported that?as one example?a mysterious burglary at the Chilean Embassy in Wash- ington in May, 1972, was part of the plan. 3. The third White House operation involved in the controversy was set up after the FBI withheld its approval of bugging and burglary. A secret unit for "special investiga- tions" was set up in 1971 in the White House itself. This specially recruited group was later to become known as "the plumbers." It was this unit that has embroiled the White House in the most serious de- bate over the Administration's intelli- gence activities. "Unprecedented" disclosure. At President Nixon's order, the undercov- er group?whose existence was known by only a few top officials?was created after what the Chief Executive called -C1049854400121100111a0Pae2dented pro- portions?'thotii liTi htt !fbikiilsr trarr Etio as isbwerg firoot.',/ ?el t3i Mr. Nixon with former aide John D. Ehrlichman, who supervised White House "special investigations" unit,. Bureau of Investigation. It was directed against 13 officials of the Nixon Admin- istration, including members of the Na- tional Security Council staff, and four newsmen. That much has come to light. The purpose of these wiretaps, Mr. Nixon explained, was to stop leaks that were endangering "highly secret diplo- macy," including Vietnam peace talks. 2. The limited wiretapping project was followed by a 1970 plan for secret F 10102601MM* : WIAT4R131P4.4 other inte 'gene? activities inside the 8.1 including atitlitititatieti tot bug- ow, Ito 11114,1.44y itz $011,111E111:4. SPYING terrorism in. the United Approved For Rase 2GOA/98/44d: Clikal:E84 [contmued trom preceding pager" " international link. With all this coming across the. President's . desk, the White House decided it was time to take extraor- dinary measures." Core of the resulting plan, in 1970, said the ex- official, was to depend chiefly on the FBI for do- mestic intelligence, while stepping up surveillance abroad by the Central In- telligence Agency and oth- er U. S. intelligence groups. Top Administration offi- cials were convinced that radical firebrands in the U. S. had financial and es- pionage links. with hostile foreign governments. But the CIA reportedly had been unable to find suffi- cient evidence to support this belief. FBI overseas. Insid- ers say that presidential dissatisfaction with CIA reports was the reason FBI offices were opened in 20 foreign countries?to pursue further the search for links abroad ,with vio- lence at home. The plan for expanded intelligence called for co- operation of the FBI, the CIA, the -fense Intelligence Agency and the tional Security Agency in a massive campaign against antiwar radicals, the Black Panthers and other extremists, and foreign embassies believed to be harbor- ing spies or saboteurs. Mr. .Hoover opposed the plan on the ground that sonic of the activities pro- posed?such as burglary?would be il- legal. Administration sources say the FBI Director also exhibited animosity toward the CIA, In his May 22 statement on the Wa- tergate case, the President said an im- proved intelligence system was needed in 1970 because of lack of liaison be- tween the FBI and other agencies. . "In July, 1970," Mr. Nixon said, "having earlier discontinued the FBI's liaison with CIA, Director Hoover ended the FBI's normal liaison with all .other agencies except the White House." It was almost a year later?in June, 1971?that the White House was shocked when "The Now York Times" published the first installment of the Pentagon Papers, made available by Mr. Ellsberg. In the President's words, "There was every reason to believe this was a se- curity leak of unprecedented propor- and his associates of the Pentagon Pa- pers, a top-secret study of U. S. policy in Vietnam. "The plumbers" included two men brought in from the outside?E. Howard hunt and G. Gordon Liddy. Mr. Hunt has testified that they were involved in the Sept. 3. 1971, burglary of the office of Mr. Ellsberg's psychiatrist, and in the burglary and bugging of the Demo-- cratic Party's national headquartei's in Washington's Watergate complex. That break-in, the President said, was as an act of political espionage unrelated to the missions of the White House inves- tigative unit. Wiretapping surveillance was initi- ated in the first place?in 1969?the President says, because news stories "ob- viously based on leaks" of secret infor- mation were exposing sensitive elements of U. S. strategy in Indo-China and the U. S. position in strategic-arms-limita- tion negotiations with Russia. Among those whose telephones were tapped were aides of Henry A. Kis- singer, the President's assistant for na- tional-security affairs. Mr. Kissinger consulted with FBI Di- rector Hoover on wiretap targets. Since disclosure of his role in surveillance of his own National Security Council staff, Mr. Kissinger has come under criticism by some of his former associates, But he emphasizes that his prime concern was to plug leaks that could compromise delicate negotiations. On May 29, Mr. Kissinger called wire- tapping in general "a distasteful thing." But, he added: . "I considered the situation, as it ex- isted, a very dangerous one. My concern was with the protection of classified in- formation that was entrusted to me and not the general problem of other leaks." Reason for decision. A former Ad- ministration official who had a hand in drawing up the abortive 1970 intelli- g,nee plan explained to "U. S. News & World Report" why the White House decided to "fight time with fire," Said the former official: "People forget just how bad condi- tions were then. We had to act. Not only were buildings going up in flames on campuses, but terror bombs were ex- ploding day after day. There were cries from antiwar activists visiting Hanoi for our troops to lay down their arms. Violence was increasing. "At the same time, police were being tagged in some cities as targets for ex- ecution. There were shootouts with the Black Panthers in Chicago. Arab ter- rorist groups vere active. Much of the Antiwar protesters burn flag in 1970. Tragic confrontation at Kent State. De- Na- tions," which "posed a threat so grave as to require extraordinary actions." The action that he took . was creating the White House special-investigations unit?"the plumbers"?under the supervi- sion of John D. Ehrlichman, then Mr. Nixon's top aide for domestic affairs. In immediate command was Mr. Ehrlich- man's assistant, Egil Krogh. The two main sleuths- were E. Howard Hunt, for- merly of the CIA, and G. Gordon Liddy, once an agent of the FBI. The President said he told Mr. Krogh that in pursuing leads on the Pentagon Papers leak, "as a matter of first pri- ority, the unit should find out all it could about Mr. Ellsberg's associates and motives." This led to preparation by the CIA, at White House request, of a psychiatric profile on Mr. Ellsberg. It also led to the burglary?admittedly authorized by Mr. Krogh?of the office of Mr. Ellsberg's psychiatrist in Beverly Hills, Calif. The fruitless break-in, car- ried out?according to grand-jury testi- mony?under supervision of Mr. Hunt and Mr. Liddy, involved use of equip- ment supplied by the CIA. Referring to the Ellsberg probe, Mr. Nixon said on May 22: "Because of the extreme gravity of 20 Approved For Release 2001/09/04 : CIA-RDP84-00499R00020110410,002-2oRLD REPORT, June 11, 1973 FROM KING ArtriKIFAMegli09/0UPitk5M409S4illifh2R23M122? Ssf?ssinations and recommended tighter security for presidential campaigns. 1970 Violent antiwar demonstrations rocked scores of college campuses, culminating in the fatal shootings of four students at Kent State University in Ohio on May 4 and two students at Jackson State University in Mississippi on May 14. "Terror bombings" multiplied all across the country. So did deliberate attacks?often fatal?on police. FBI Director J. Edgar Hoover warned of "foreign influ- ences" in "black extremist groups?particularly the Black Panthers"?and reported plans for "urban guerrilla warfare" by the militant Weatherman organization, an offshoot of the Students for a Democratic Society. 1971 A bomb exploded in the U. S. Capitol on March 1. A federal grand jury indicted eight persons, alleging a plot to kidnap a presidential adviser, blow up Government property in Washington and destroy draft records in Selective Service offices around the nation. Thousands of antiwar protesters were arrested in a massive "May Day" attempt to close down the nation's capital. In another kind of act that disturbed the White House: On June 13, "The New York Times" began publishing a se- ries of documents classified "secret"?known as the Pentagon Papers?on U.S. policy in the Vietnam war. 1972 The Republican National Convention was shifted to Miami Beach, Fla., partly because of information that radical groups planned disruptions at San Diego, Calif., the site previously selected. On May 15, Governor George C. Wallace of Alabama was shot and seriously wounded while campaigning in the Mary- land presidential primary. AN ERA OF VIOLENCE A record of violence and lawlessness?starting before he took office?was cited by President Nixon as his reason for ordering steps to protect "national security." Part of that record: 1968 The April 4 assassination of the Rev. Dr. Martin Luther King, Jr., set off rioting in scores of cities. that killed 48 per- ;ons, 'burned hundreds of city blocks, forced the use of 20,- .)00 federal troops and 34,000 National Guardsmen. On June 5, Senator Robert F. Kennedy was slain while ?.:iinpaigning for the Democratic presidential nomination. The issassin was identified as a Jordanian Arab. The tragedy tern- .iorarily disrupted the primary campaign. Later in June, a "poor people's march" on Washington mded in violence, forcing the use of National Guardsmen. In August, the Democratic National Convention in Chicago ?vas beset by street violence of youthful demonstrators. Once igain the National Guard was called to aid police. l969 At President Nixon's inauguration January 20; hundreds if antiwar demonstrators hurled rocks, bottles and obscenities it his car in the biggest inaugural disruption ever. A series of massive antiwar demonstrations in many cities iroduced repeated outbreaks of violence among crowds rang- ng up to 250,000 people. A National Commission on the Causes and Prevention of ,'iolence found the scope of antiwar protest, urban unrest, )lack violence, college disorders and political assassinations vere "unprecedented in our history." It warned conditions he situation, and not then knowing vhat additional secrets Mr. Ellsberg night disclose, I did impress upon Mr. :rogli the vital importance to the na- ional security of this assignment. I did lot authorize and had no knowledge of ,ny illegal means to be used to achieve his goal." A former White oininent: "I feel there >waking into the House aide made this was justification for doctor's office to see names could be found of people Ilsberg was working with. But you have it both ways. If you conduct perations of this kind, you can't make he case stand up in court. Tho Admin- itration wanted it both ways." The burglary and disclosure of a wire- apped conversation involving Mr. Ells- erg were among factors which resulted n dismissal of espionage, theft and con- piracy charges against him. Among assignments given to "the lumbers" was compilation of what the 'resident called "an accurate record of vents related to the Vietnam war." 'resumably it was on thihmiAmAtF hat. Mr. hunt obtained accenlIcr SraTe vp-; loot files and faked cables- to 0,K4itlont loitti Kennedy was implicated in the assassination of South Vietnamese President Ngo Dinh Diem. Mr. Hunt admitted this in Wa- tergate grand-jury testimony later made public at the Ellsberg trial. White house undercover operations were not confined to "the plumbers." Senate hearings on the Watergate bur- glary have brought out that two former New York City policemen, John J. Caul- field and Anthony T. Ulasewicz, were part of a White House network gather- ing political information about leading Democrats. From an official who helped to devise the 1970 intelligence plan comes this comment on the Watergate break-in: "The system that was developed to rieal with a real security problem was used for politics. There is absolutely no justification for that." Re-election committee. Senate and grand-jury testimony has linked the Wa- tergate burglary to the Committee for the Re-election of the President. In preparation for resumption of the Senate's Watergate hearings June 5, in- orVAtse Cosfib9ifisitiVVele4- al c e su e4nonage an sa o age techniques against persons inside and outside of the Covernment4 The President insists that he has no intention of attempting to place a na- tional-security "cover" on Watergate or other illegal activities. But Mr. Nixon is getting sharp chal- lenges on the national-security issue. Examples: Senator Edmund S. Muskie -(Dem.), of Maine, charged on May 28 that "na- tional security became the excuse for systematic deception." Representative John B. Anderson (Rep.), of Illinois, chairman of the I louse Republican Conference, said: "National security is a very weak reed on which to explain what happened. It fails to ex- plain why?with our FBI?it was neces- sary to set up an extralegal organization in the White House." Defenders of the President contend that actions he took to stop leaks and protect secrets were justified. There is widespread belief in Con- gress that the controversy over burglary, bugging and spying will intensify as more witnesses are heard, with a pros- pect of new revelations. snyocittp,ars 00 to expect44 ans, he resi.ent says: 'Xs more infor- mation is developed, I have no doubt that tnoto question will be raised:" Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 SPYING AT WHITE HOUSE ORDERS When It Started and Why OUT or THE Watergate scandal?al- most daily?comes a steady torrent of fresh revelations about spying, bur- glary and wiretapping ordered by men in the White House. It was President Nixon, starting in 1969, who personally ordered certain kinds of espionage inside the U. S. be- muse of what he called the overriding iced to safeguard national security. These orders, testimony makes clear, were interpreted in various ways by lubordinates, leading to wiretaps of Coy- aliment officials and private citizens, mrglarizing of offices?and eventually, a an offshoot, to the Watergate bugging rid break-in itself on June 17, 1972. Mr. Nixon, in a statement of May 22, aid he could 'understand that the ern- ihasis he put on "the crucial importance f protecting the national security" ould have caused "highly motivated in- ividuals" to do things he would have isapproved had he known about them. The President's critics assert that the omestic spy system developed by the Vhite House to protect secrets was ille- ally put to political uses?for which lame is still to be fixed. Big surprise. Upshot of it all: Now afolding and coining into perspective a wide range of extraordinary domes- .intelligence operations that have come ; a big surprise to many Americans. Senator Sam J. Ervin, Jr., bead of the mate's Watergate inquiry, declared May 31 that the nation would be hocked" if all details of a White ouso plan to "spy on Americans" were ado public. He said that secret docu- ants which he had seen reveal a "Ge- ipo mentality" at top levels of the Nixon Iministration, outlining "an interagen- ' operation to spy on Americans, espe- illy those who disagreed with the Ad- inistration." Some in Congress are accusing the hite House of adopting "pArwreogii .tliods and of polling a naffiKasecur- ?1,tititert iivri ,..d 110;41?, if not all?of the activity as necessary. They insist that the President's inten- tions were in the nation's best interests, in view of the "climate" of the time. The focus is on three national-security activities originating in the White House. In chronological sequence, they were: 1. A program of wiretapping, begun In 1969, carried out by the Federal This plan evolved at a time when. antiwar riots and other violence were erupting on hundreds of campuses. The plan was approved by Mr. Nixon .but was shelved when the Director of the FBI, the late J. Edgar Hoover, opposed it. Mr. Nixon reported that his approval was withdrawn before the plan was im- plemented. However, the Associated Press reported on May 30 that "sources close to the Watergate investigation say the plan was put at least partially into practice." The sources insisted that secret agents intercepted mail, tapped telephones, audited in- come-tax returns and planted informers. The ex- tent of this operation is not fully known. Another source reported that?as one example?a mysterious burglary at the Chilean Embassy in Wash- ington in May, 1972, was part of the plan. 3. The third White House operation involved in the controversy was set up after the FBI withheld its approval of bugging and burglary. A secret unit for "special investiga- tions" was set up in 1971 in the White House itself. This specially recruited group was later to become known as "the plumbers," It was this unit that has embroiled the White House in the most serious de- bate over the Administration's intelli- gence activities. "Unprecedented" disclosure. At President Nixon's order, the undercov- er group?whose existence was known by only a few top officials?was created Mr. Nixon with former aide John D. Ehrlichman, who supervised White House "special investigations" unit. Bureau of Investigation. It was directed against 13 officials of the Nixon Admin- istration, including members of the Na- tional Security Council staff, and four newsmen. That much has come to light. The purpose of these wiretaps, Mr. Nixon explained, was to stop leaks that were endangering "highly secret diplo- macy," including Vietnam peace talks. 2. The limited wiretapping project was followed by a 1970 plan for secret after what the Chief Ezegutive called 4infe4t:1365F}RDIR84-01149aROPQack0gfi QPiPet4dented pro- other intelligence activities inside the portions." The leak he referred to was U1 L Iiiihnling authorization for bug- the dis?etnitiatiou by Daniel Ellsberg 4".,I 1,11)gb4ivlii itiIIi1 qltHIhlIS. iumititi,..r ,,,, .,4 SPYING Approved For Rase Econtindea tram preceding pager - and his associates of the Pentagon Pa- pers, a top-secret study of U. S. policy in Vietnam. "The plumbers" included two men brought in from the outside-E. Howard Hunt and C. Gordon Liddy. Mr. Hunt has testified that they were involved in the Sept. 3. 1971, burglary of the office of Mr. Ellsberg's psychiatrist, and in the burglary and bugging of .the Demo- cratic Party's national headquarteh in Washington's Watergate complex. That break-in, the President said, was as an act of political espionage unrelated to the missions of the White House inves- tigative unit. Wiretapping surveillance was - initi- ated in the first place-in 1969-the President says, because news stories "ob- viously based on leaks" of secret infor-. illation were exposing sensitive elements of U. S. strategy in Indo-China and the U. S. position in strategic-arms-limita- tion negotiations with Russia. Among those whose telephones were tapped were aides of Henry A. Kis- singer, the President's assistant for na- tional-security affairs. Mr. Kissinger consulted with FBI Di- rector Hoover ? on wiretap targets. Since disclosure of his role in surveillance of his own National Security Council staff, Mr. Kissinger has come under criticism by some of his former associates. But he emphasizes that his prime concern was to plug leaks that could compromise delicate negotiations. On May 29, Mr. Kissinger called wire- tapping in general "a distasteful thing." But, he added: . "I considered the situation, as it ex- isted, a very dangerous one. My concern was with the protection of classified in- formation that was entrusted to me and not the general problem of other leaks." Reason for decision. A former Ad- ministration official who had a hand in drawing up the abortive 1970 intelli- gr'nce plan explained to "U. S. News & World Report" why the White House decided to "fight fire with fire." Said the former official: "People forget just how bad condi- tions were then. We had to act. Not only were buildings going up in flames on campuses, but terror bombs were ex- ploding day after day. There were cries from antiwar activists visiting Hanoi for our troops to lay down their arms. Violence was increasing. "At the same time, police were being tagged in some cities as targets for ex- ecution. There were shootouts with the Black Panthers in Chicago. Arab ter- rorist groups were active. Much of the terrorism in the United A64$0Vd WARD FM34- international link. With all this coming across the President's . desk, the White House decided it was time to take extraor- dinary measures." Core Of the resulting plan, in 1970, said the ex- official, was to depend chiefly on the FBI for do- mestic intelligence, while stepping up surveillance abroad by the Central In- telligence Agency and oth- er U. S. intelligence groups. Top Administration offi- cials were convinced that radical firebrands in the U. S. had financial and es- pionage links with hostile foreign governments. But the CIA reportedly had been unable to find suffi- cient evidence to support this belief. FBI overseas. Insid- ers say that presidential dissatisfaction with CIA reports was the reason FBI offices were opened in 20 foreign countries-to pursue further the search for links abroad with vio- lence at home. The plan for expanded intelligence called for co- operation of the FBI, the CIA, the De- fense Intelligence Agency and the Na- tional Security Agency in a massive campaign against antiwar radicals, the Black Panthers and other extremists, and foreign embassies believed to be harbor- ing spies or saboteurs. -Mr. hoover opposed the plan on the ground that some of the activities pro- posed-such as burglary-would be il- legal. Administration sources say the FBI Director also exhibited animosity toward the CIA. In his May 22 statement on the Wa- tergate case, the President said an im- proved intelligence system was needed in 1970 because of lack of liaison be- tween the FBI and other agencies. "In July, 1970," Mr. Nixon. said, "having earlier discontinued the FBI's liaison with CIA, Director Hoover ended the FBI's normal liaison with all other agencies except the White House." It was almost a year later-in June, 1971-that the White House was shocked when "The New York Times" published the first installment of the Pentagon Papers, made available by Mr. Ellsberg. In the President's words, "There was every reason to believe this was a se- curity leak of unprecedented propor- Antiwar protesters burn flag in 1970. Tragic confrontation at Kent State, tions," which "posed a threat so grave as to require extraordinary actions." The action that he took .was creating the White House special-investigations unit-"the plumbers"-under the supervi- sion of John D. Ehrlichman, then Mr. Nixon's top aide for domestic affairs. In immediate command was Mr. Ehrlich- man's assistant, Egil Krogh. The two main sleuths were E. IIoward Hunt, for- merly of the CIA, and G, Gordon Liddy, once an agent of the FBI. The President said he told Mr. Krogh that in pursuing leads on the Pentagon Papers leak, "as . a matter of first pri- ority, the unit should find out all it could about Mr. Ellsberg's associates and motives." This led to preparation by the CIA, at White house request, of a psychiatric profile on Mr. Ellsberg. It also led to the burglary-admittedly authorized by Mr. Krogh-of the office of Mr. Ellsberg's psychiatrist in Beverly Ifills, Calif. The fruitless break-in, car- ried out-according to grand-jury testi- mony-under supervision of Mr. Hunt and Mr. Liddy, involved use of equip- ment supplied by the CIA. Referring to the Ellsberg probe, Mr. Nixon said on May 22: "Because of the extreme gravity of 20 Approved For Release 2001/09/04: CIA-RDP84-00499R0002000100024oRLD REPORT, June 11, 1973 FkOM KINGPTOVALtIACE 1/09/04vb;MPORepeg-9f19F poologpo22 12nraassassinations and recommended tighter security for presidential campaigns. AN ERA OF VIOLENCE 1970 A record of violence and lawlessness?starting before he took office?was cited by President Nixon as his reason for prdering steps to protect "national security." Part of that record: 1968 The April 4 assassination of the Rev. Dr. Martin Luther King, Jr., set off rioting in scores of cities that killed 46 per- ;ens, burned hundreds of city blocks, forced the use of 20,- MO federal troops and 34,000 National Guardsmen. On June 5, Senator Robert F. Kennedy was slain while ampaigning for the Democratic presidential nomination. The issassin was identified as a Jordanian Arab. The tragedy tern- )orarily disrupted the primary campaign. Later in June, a "poor people's march" on Washington .ruled in violence, forcing the use of National Guardsmen. In August, the Democratic National Convention in Chicago vas beset by street violence of youthful demonstrators. Once igain the National Guard was called to aid police. [969 At President Nixon's inauguration January 20, hundreds )f antiwar demonstrators hurled rocks, bottles and obscenities it his car in the biggest inaugural disruption ever. A series of massive antiwar demonstrations in many cities woduced repeated outbreaks of violence among crowds rang- rig up to 250,000 people. A National Commission on the Causes and Prevention of .7iolence found the scope of antiwar protest, urban unrest, ilack violence, college disorders and political assassinations vere "unprecedented in our history." It warned conditions Violent antiwar demonstrations rocked scores of college campuses, culminating in the fatal shootings of four students at Kent State University in Ohio on May 4 and two students at Jackson State University in Mississippi on May 14. "Terror bombings" multiplied all across the country. So did deliberate attacks?often fatal?on police. FBI Director J. Edgar Hoover warned of "foreign influ- ences" in "black extremist groups?particularly the Black Panthers"?and reported plans for "urban guerrilla warfare" by the militant Weatherman organization, an offshoot of the Students for a Democratic Society. 1971 A bomb exploded in the U. S. Capitol on March 1. A federal grand jury indicted eight persons, alleging a plot to kidnap a presidential adviser, blow up Government property in Washington and destroy draft records in Selective Service offices around the nation. Thousands of antiwar protesters were arrested in a massive "May Day" attempt to close clown the nation's capital. ? In another kind of act that disturbed the White House: On June 13, "The New York Times" began publishing a se- ries of documents classified "secret"?known as the Pentagon Papers?on U. S. policy in the Vietnam war. 1972 The Republican National Convention was shifted to Miami Beach, Fla., partly because of information that radical groups planned disruptions at San Diego, Calif., the site previously selected. On May 15, Governor George C. Wallace of Alabama was shot and seriously wounded while campaigning in the Mary- land presidential primary. he situation, and not then knowing chat additional secrets Mr. Ellsberg night disclose, I did impress upon Mr. Zrogli the vital importance to the na- kmal security of this assignment. I did lot authorize and had no knowledge of tly illegal means to be used to. achieve his- goal." A former White House aide made this omment: "I feel there was justification for 'making into the doctor's office to see names could be found of people .:11sherg was working with. But you an't have it both ways. If you conduct perations of this kind, you can't make he case stand up in court. The Admin- itration wanted it both ways." The burglary and disclosure of a wire- apped conversation involving Mr. Ells- erg were among factors which resulted a dismissal of espionage, theft and con- piracy charges against him. Among assignments given to "the lumbers" was compilation of what the 'resident called "an accurate record of vents related to the Vietnam war." 'resumably it was on this assignment hat Mr. Hunt obtained accA.PletMEtiii .oinient Meg And faked tables. to ?ii,,,o? *41;0 was implicated in the assassination of South Vietnamese President Ngo Dinh Diem. Mr. Hunt admitted this in Wa- tergate grand-jury testimony later made public at the Ellsberg trial. White House undercover operations were not confined to "the plumbers." Senate hearings on the Watergate bur- glary have brought out that two former New York City policemen, John J. Caul- field and Anthony T. Ulasewicz, were part of a White House network gather- ing political information about leading Democrats. From an official who helped to devise the 1970 intelligence plan comes this comment on the Watergate break-in: "The system that was developed to deal with a real security problem was used for politics. There is absolutely no justification for that." Re-election committee. Senate and grand-jury testimony has linked the Wa- tergate burglary to? the Committee for the Re-election of the President. In preparation for resumption of the Senate's Watergate hearings June 5, in- vestigators pressed ' . *rie4.,..int 3 Ranweareeom !*. ti.' anSct% techniques against persons Inside and raitSitle tlf the ritti&Filifitzlii. The President insists that he has no intention of attempting to place a na- tional-security "cover" on Watergate or other illegal activities. But Mr. Nixon is getting sharp chal- lenges on the national-security issue. Examples: Senator Edmund S. Muskie (Dem.), of Maine, charged on May 28 that "na- tional security became the excuse for systematic deception." Representative John B. Anderson (Rep.), of Illinois, chairman of the house Republican Conference, said: "National security is a very weak reed on which to explain what happened. It fails to ex- plain why?with our FBI?it was neces- sary to set up an extralegal organization in the White House." Defenders of the President contend that actions he took to stop leaks and protect secrets were justified. ? There is widespread belief in Con- gress that the controversy over burglary, bugging and spying will intensify as more witnesses are heard, with a pros- ? pect of new revelations. tore expect 4-qms. e /7Pstetilli Mgr rms o infor- mation Is developed, I have no doubt fliqf to fiikt ti'' gal YORK TIMES Approved For Release 2001/09V2:tp-RfDR84-00499R000200010002-2 N.) . Warning Against Blaming C.I.A. Is Laid to McCord' By SEYMOUR M. HERSH Special to The New York Tinton . WASHINGTON, May 21 ?James W. McCord Jr. sentl John J. Caulfield, a former White House aide, an unsigned , letter shortly .before the Watergate trial warning that if the : TNixon Administration per: of wiretap information but the Isisted in an attempt to de-; Federal prosecutors reported 1 that a search of all relevant ,pict the bugging operations wiretap logs proved negative. with the C.I.A. before joining withdraw from the suit. the Government to conc,ecte that he had been overheardq Limited to Foreign Affairs calling the embassies. I He added that intelligence Tainted Case Feared offices in the Government only ' saw material relating to foreign An associate of Mr. Alch said affairs, and did not get to view' that was believed "that the transcript S of conversations be- Government would not come tween the embassy and Con- forward with a wiretap that gressmen or other transcripts ,we knew they had, thereby relating to domestic affairs. tainting the whole case." One legal expert, asked about McCord, in his Senate testi- McCord's alleged attempt to many, named Mr. Alch as force the Government to either among those who had urged reveal the wiretap or drop its him to describe the Watergate case, described it today as "a bugging as a C.I.A. operation, cute idea." Mr. Alch, the sources said, filed The expert, Herman Schwarz a motion last week seeking to of the University of Buffalo l Law School, noted that the Fed. eral Government had been "struggling" with a Supreme Court ruling that national se. as inspired by the Central McCord, who served 19 years The Alch associate said that McCord did not provide any evidence to prove that he had been overheard. "He indicated [curity wiretaps for domestic that he was meeting with some- purposes were illegal if they one about this and it was none were obtained without a- court i of Alch's business" the asso- l order and therefore, must be ciate said. disclosed. After the Government denied ' the existence of any relevant wiretap logs, the Alch associate said, McCord decided not to press the issue further and in- stead urged that is defense be based ? as it was ? on the 'argument that he conducted Intelligence Agency, he would "bring the house down," sources close to the case said today. "He wanted to make IL clear," a McCord associate said, "that if they wanted tio put this off on the C.I.A., he was going to blow their story clear out of the water," volvements of higher-ups dur- ing the Federal inquiry into the Watergate affair last fall, and which the former C.I.A. secii- continued to do so even when rity official did not mention provided with two chances for , during his televised' Watergate testimony reduced charges, the illegal bugging operation to before the Senate This source suggested that protect the United States from committee last Friday, was McCord's threatening letter to radicals, and therefore had no . mailed in late December, Called 2 Embassies The sources said that Mc- Cord, a convicted Watergate bur?glar and conspirator, then made a token telephone calls to the Israeli and Chilean Em- bassies in Washington, which he. knew, from his days as a C.I.A. official to be wiretapped by the Federal Bureau of In- vestigation, and, they said, he the President's re-election com- mittee early in 1972 as a secur- ity co-ordinator, will testify again tomorrow before the Sen- ate Watergate committee. His initial appearance Friday was televised nationwide. One Government source noted, however, that McCord had refused to discuss the in- Mr. Caulfield may have been a criminal intent. factor behind Mr. Caulfield's Intelligence officials con- reported subsequent offer of firmed the exitence of wiretaps executive clemency for McCord On the Israeli Embassy today. in exchange for silence. Mr. One Government source said Caulfield also is scheduled to the top-secret F.B.I. wiretap testify before the Senate Com- program was known by the mittee tomorrow. code name "Scope" when it In his testimony Friday, Mc- was initiatedfuring the John- Cord related how Mr. Caulfield son Administration. offered him clemency, financial "I remember that the reports aid and a job if he continued were hand-carried around of not to cooperate with the Fed- the political sensitivity of our eral prosecutors. McCord said bugging of an ally," the source the offer from Mr. Caulfield? added. He specifically recalled whom he quoted as invoking reading the transcript of a con- later demanded that White the name of President Nixon? versation involving Golda Meir, House officials prevail on Fed- was first conveyed during the the Israeli Premier, and Lieut. era' prosecutors to concede ? e Gen. Yitzhak Rabin, Israel's Am iopening week the Watergate that he had been overheard bassador to the United States, I trial early last January. That during the Mideast cridis of oi . an illegal wiretap and dis- twould have been about two 1970. "Mrs. Meir was diseuss- weeks after McCord's letter log Secretary of State [William was mailed. P.] Rogers," the source recalled. During his testimony, Mc- At the time, the United States Cord told of eventually refusing was seeking a peace agreement miss the charges against him. "He wanted the Government to come in and say it had overheard him," one source said. "Ile told Caulfield that's (Mr. Caulfield's offer and said. in the Mideast. he had repeatedly complained' Copies of the "Scope" ma- the way he wanted it done." to him that "the Government terial were routinely distributed had lied in denying electronic. by the F.B.I. to the offices of interception of my phone calls Henry A Kissineer President Mr. Caulfield, a former New York City undercover police man who Joined the White; from my residence." McCord Nixon's national - security ad- House staff in April, 1969) added that he had provided viser, and to the C.I.A. and took McCord's demand to JOH rNalincliCinailliorineldthe dates of the ! with a memo- National Security Agency, the W. Dean 3d, then the White! two cane of m intelligence official said.ine in September, House counsel, the source said.. 1972, and October, 1979, that I "Dean wanted to do it that was sure had been intercepted." way, too," the source added, Government investigators "but the F.B.I. conducted a. said today that McCord was , search and couldn't findany- referring to his calls to the thing." Chilean and Israeli Embassies. During the first weeks of What McCord did not tell the Senate committee, one source the trial, McCord's attorney, a Genic! Alch or Boston, madedded, was the he had told two nrntions for the chscicAppreaaP6i0Ozd-1646 209110 9/04 ecej? _01] Pait= 99R000200010002-2 Cik:GO T T Approved For Rejsiase 20011/%4W: vaRDP84-00499Re200010002-2 t ?1"'" L'- 4 ! 0 tr; Tr Tr - -if 77'71 /rt.\ tt h- t i ti ti kik;t1 `4,../. .191 e r pi Jr 1 .. j4 .r.1) 1,1:ASIIINGTON, May 18 FEDERAL Grand Jury, Or- !l']--j. he Senate committee land?, Fin--feted Nixon campaign operative Donald Segretti and ? accountant George Hearing in connec- tion with a bogus letter on JUne 17 at Demorratic Nation- Sen. Edmund Mnskie's station- al-Committee headquarters. cry, accusing Senators Hubert A brief rundown of ? invcsti- Humphrey and Henry Jackson gallons into the Watergate of sexual misbehavior. Hear- break-in and similar matters: mg has pleaded guilty. FEDERA I., 'Grand Jnry, - LOS ANGELES County Winshin{:;ion----Convened shorty Grand Jury?Expected to con- after the break-in, it returned vcne next month to investigate iutiotments against , the seven the burglary - attempt at the office of the psychiatrist of original Watergate defendants, all of whom were convicted in former Pentagon Papers de- Ja.nuary. fendant Daniel Ellsberg. probing the Watergate affair, which opened hearings yester- day, is directing only one of a series of investigations that began with the break-in last :FEDERAL Grand Jury, New York -Hogan an inve.':?:liaqon in January of an unreported $00,00 cash contribution to President. Nixon's canilmign by financier Robert Vesco anti returned indictments last week against Vesco, former Atty. Gen. John Mitchell, former Commerce Secretary _Maurice Stems, and Harry Sears, New Jersey ehairmtin of the Nixon campaign. EDE RAH Grand diwy, Haus,tort---Hcgan an investiga- i tion Jest WC !:c. of in ! contrihutiers to the Nixon camnaign that were traced to one of the men captured imado the Watergate. .11161107- INnt of a ,$ICO.0O3 contri- bntion by Itehert AliJJ, presi- aent of Gulf Reantices Clifnn lea] Corp. ?HS/HC- g4T CENTRAL Intelligence Agency?Being probed by the Senate Appropriations and Ileuse Armed Servic.es com- mittees in connection with F.',Ilsberg burglary and the White House Watergate cover- up. It has been disclosed that Presidential aides 'trial to or- der CFA interference with a Watergate-relafed Federal Bu- reau of Inves.tigation probe, JusTICE Department?Out- going Atty. Gen. Richard 77 - [10 et, 1/'),q- I./6 Z4./ "iJ&' I have been taken to the Justice 1 Department by the General , Accounting office, the congres sional watching agency. The comminittee pleaded no con- test- and was fined $8,000 in one case. WHITE 110USE--President Nixon announced last August that an internal investigation by former Presidential Coon- ? sel John \V. Dean III cleared all staff members of involve- ment. The White House now says there were inadequacies in a report relayed orally to Nixon. Dean has denied con- ducting such an investigation. CIVIL SUITE?By Common Cause, to force disclosure of - pre-April 7, 1972, campaign contributions, and by the Dem- ocratic National Committee have resulted in sworn depos- lions which have shed light on the Watergate ease. ? KENNEDY?Sen. Edward Kennedy's subcommittee on administrative practice began a Watergate investigation last fall but recommended it be taken over by a committee with greater resources. 1hei2Liieat. promised that the department's \\Taterate loves- "-'"""-Ji:ile 'use flank- ion l b ing and Curre ncy Committee, tignt rond e, the. under Chairman Wright Pat- thoro since that c ning oncer the ay:tcs,Ination or President "'"''" " rj.?x' beg a" a" "1- ? veAig,:ttiati inattcrs rcialia; 1:enitedy: to WiAtergate us Atutist but GNERAL, Accounting Of- halted its probe' after mom- fice--Five ai:rparent vhAntians be,rS refu.7.ed to vote thci corn- by the Nixon .committee or 1.11t, mittue sti!Tena powers in Oc- n72 cam2aii-zn-spen.:Ung tober. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 S y 141d sopl XL Approved FOr Reelease 2001/09/04: CIA-RDP84-00499R00 200010002-2 , , 'Po r.? e?Is J.... N.?, .4. .4. .2 y - 47-1 i LA. LI . ? Now that the Watergate invesl committee has g,?aciously recessed, t it may intcre6t a fi:NV peo plc: that the go.vornment is remarkably close to grinding to a halt. The ultimate cauSe is Watergate?into?Xication in the ? Senate, so you can 'olame the Presi- dent if you choose. But the Senate is still the body that has chosen to halt the government in many vital ways. ? To get an idea of what is happening, you need only glance at a single area where even thc.? dilatory Senate used to be capable of reasonably swift. deci- sions. In the bad old days?which some are beginning to regard as the good old days?the Senate. cherished two principles in dealing with vacancies in .really major government posts. '17irsi, the President, as head of the executive branch, was considered .to have a right to fill major posts with men of his choice?unless they could be shown to have really grave deficien- cies. Second, it was also considered irn- proper to leave posts like the secretary- ship of defense, or thio directorship of the Central Intelligence Agency, in a kind of empty limbo for undue periods ' of time. Today, however, .we have had no ! . Secretary of Defense since the Presi- dent transferred Elliot :Richardson to the Justice Department. The CIA has also boon leader-less since the Presi- dent decided to give the Defense De- ,. partment to his new CIA' director, Dr. James Schlesinger, and to promote the . able CIA professional, William Colby, 1 - to ? the directorship . Schlesinger has I- abandoned. No senator, on the Armed Services . . Committee can need to know much I ? . more about Dr. Schlesinger, since ex- 1 haustive hearings were held before he 1 WaA confirmed for the CIA director- . ship..As to Colby no one anywhere has [ so ranch as whispered that .this was j- not a good choice by President Nixon. t? OffIcally, to be sure, the hearings on 1. Schlesinger were delayed because of 'Ms need to attend a NATO meeting in Europe. In reality, in view of the hear- ings just held, 'there was no apparent . need to question Schiesiner :further. fPresurnably, the Defense Depart- ment and the CIA will now cease to be headless in a few days' time. But this . - is only 1-,cal.i.,;(: of the forceful inter- ; I, vontion from his hospital bed of that 4 relic of the more national-minded past, i . ? A ; the chairman of the Senate Armed- iForces Committee, Sen. John C. Stennis. Until Stennis intervened, the actin,:,, chairman, Sen. Stuart Syroin ton, meant to deal with Dr. Schlesing- er'a nomination concurrently with the vast, c'omple'x and controversial mili- tary procurement bill which will de- mand weeks of hearings! ? James Sch/esin ger all subject to Senator :;:otilbright's an- gry veto. They were adjudged to be guilty men, and confirmation was ini- tially refused to all four. Under heavy pressure from the senior Republican on his committee, Sen. Coos-go Aiken, IFulbright then gave way on the nomi- nation of the former ambassador to Thailand and Italy, 'Graham A. Martin, to be the new U.S. ambassador to South. Vietnam. - The argument used vina the need to have an ambassador to deal with Presi- dent Nguyen Van Thiclu at this tricky juncture. All kinds of ego-massage, not just for Fulbright, but also for other committee members like Sen. jaCob Iayits, was further demanded and vidod, ? before the confirmation of Gra- ham Martin was reluctantly conceded. Meanwhile, there are William B. Sullivan, named for the Philippines; J. McIVItirtrie Godley, nominated assist- ant secretary of state for East Asian affairs; and Charles Whitehouse, for aaab.a, 0.am a ? C6/10), ? ambassador to Laos. All are men of ins- peccabic character. Whitehouse is per- r haps the -Foreign Service's most ad- 1. mired member of his rank and age. The charge against all of them is, solely and simply, that they faithfully carried out their instructions while on 'duty in Southea.st. Asia.. ;. This makes you almost homesick for the awful. McCarthy-time. After Sen. Joseph McCarthy so implacably and successfully pursued John Davies, 1, John Stewart Service .and their col- ? leagues; on the .unique. ground of their individual "bad ,judgment." What Sen- ator l'ulbright is doing is in fact much I worse. HO is making it a proof of fatally 'fbad judgment" for Foreign Service .t officers to execute 'their own govern- I ment's policy decisions. So what are 1. Foreign Service officers to do in the 1 future, if the Fulbrii.:ht elaboration 'on ' the 'late McCarthy is generally- accepted? ci.D73. Loa Anzeles Timos. Thi z kind of senatorial ego-trip is ?merely frivolous. As to what Sen. J. Fuliwight is currently doing in 1 ? ? ? the Serial.? Foreign Relations Commit- `,SO, ugiier adjectives might \veil be as cI. Ilcre the problem has been. the ? 1 ? P;c:ddent'4 choice of four , ;:tii?ihed Foreign Service veterans for hi;(h posts here and abroad, r.ecause of their past service ill .Thutheast Asia, the four veterans Were -Approved-For-Release 2001/09/04: CIA-RDP84-00499R000200010002-2 rs/nc- Ar',F Approved For Releare02001/09/04 : CIA-RDP84-00499R0002a0010002-2 mi4c-cais 4! . A-4 ? 'THE EVENING STAR and DAILY NEWS Washington, a C., Friday, Amy 22, 1973 , By Jeremiah O'Leary Sur-News Staff Writer The Senate Foreign Rela- tions subcommittee on mul- tinational corporations, reporting on its ITT-Chile hearings, today called for a congressional review of the process by which CIA clan- destine operations are au- thorized and conducted. The subcommittee, head- ed by Sen. Frank Church, D-Idaho, said the hearings in March raised questions about the so-called "Forty Committee," an interde- partmental group under presidential national securi- ty adviser Henry Kissinger which reviews CIA clandes- tine operations. ? The report said unan- swered questions include how much detail the Forty :Committee communicates :to the CIA; whether CIA A tells the Forty Committee :the means it intends to use in carrying out assign- ments; and whether the committee knew CIA would discuss with a U.S. corpora- tion efforts to influence the :Chilean political situation. "I'm distressed by what happened but I can find ,nothing illegal about it," Church told a press confer- , .:ence. "That's why we need a law to bar this incestuous [relationship between gov- ernment and private corpo- rations." ? CHURCH ANNOUNCED the subcommittee has unan- imously approved recom- mending legislation that "would make it a criminal !offense for American citi- zens to offer or provide funds to U.S. government agencies for the purpose of A interfering in foreign elec- tions. The bill, which will be ' introduced by the Foreign Relations Committee, also ',prohibits U.S. employes A from accepting such funds. ,;.? The penalties described in :the bill would be a fine of not more than $10,000 or imprisonment for not more than five years, or both. Church said the record on the ITT-Chile case would be ...sent to both the Justice ' Department and to special Watergate prosecutor Ar- chibald Cox but he said the subcommittee does not now 'see any indication of perju- ry because of amended tes- timony. pproved For REtleasec2014109/04aCI tiny and the proposed con- gressional inquiry of CIA ()aerations is necessary. Church said, because exist- ing oversight committees of Congress have "done very little overseeing." THE SUBCOMMITTEE Wearings brought out great detail about discussions among ITT, the CIA and State Department officials about the Chilean situation, including an ITT offer of money up to seven figures to set up a campaign fund for a rival of Marxist Salva- dor Allende. The CIA in turn suggested a plan to create economic chaos in Chile. None of these discussions resulted in any action because the CIA rejected the ITT money offer and ITT did not think the CIA proposal was work- able. In 1971, nearly a year aft- er his election and months before the ITT-CIA discus- sions were made public, Allende expropriated ITT holdings in Chile: "It is clear from this case," the subcommittee reported, "that there were significant adverse conse- quences for U.S. corpora- tions which arose out of the decision to use ITT in the way it was used willing as ITT may have been ? and that it was not in the best interests of the U.S. business community for the CIA to attempt to use a U.S. corporation to influence a political situation in Chile." THE SUBCOMMITTEE asked whether the Forty Committee considered the possibility of bloodshed and civil war in discussing in- terference and whether it thought about the conse- quences if the plan to accel- erate economic chaos in Chile had been successful. The record of) the hear- ings calls into question the administration's tated poli- cy of dealing with govern- ments as they are in Latin America, the subcommittee said. The subcommittee said it is understandable that ITT wanted the assessment of the U.S. government on the Chilean presidential elec- tion. "But what is not to be condoned," it said, "is that the highest officials of ITT sought to engage the CIA in a plan to covertly manipu- late the outcome of the elec- AAD.R8441114kQEM09201010002-2 fly overstepped the line of acceptable corporate be- havior." Watergate U leava;-?-? Approved Forsaplease 2001/09/04 : CIA-RDP84-004994900200010002-2 0 THE RECORD: C OF WHITE HOUSE "P AIMS FF" ?USN&WR Photo it was James W. McCord, Jr. (arrow), who gave bombshell testimony in Watergate hearing. It didn't take long for the Senate hearings to get right to the point: Who ordered the Watergate buggings?and the subsequent cover-up? The Senate bearings on the Water- gate case had barely begun before it be- came clear where the investigation was heading: straight toward the White Hot me. From the opening gavel, the ques- tions asked by the select committee of seven Senators bored in on the roles played by onetime aides of President Richard Nixon and former members of his Administration. On May 18, the hearings' second day, the Senators began to get the sensation- al kind of testimony that they?and .mil- lions of American citizens?had been led to expect. It came from James W. McCord, Jr., one of the seven men convicted of the break-in and bugging of the Democratic Party headquarters in the Watergate complex in Washington, last June 17. - clemency offer was made, "that the re- room where the Teapot Dome scandal It was Mr. McCor ettoAd FbdtkReleid)2ti01/0(9$044:TiAdai9P94a06499R0002000100024xt news page) the silence of the Watergate conspira- tors on March 23 and opened the way for the massive investigation that is now in process. Clemency offered? These were the highlights of his testimony before the Senate committee: ? Mr. McCord said he was told by fellow conspirators that the burglary and bugging had been approved by John N. Mitchell, former Attorney General and later Nixon campaign director; by John W. Dean III, who was fired recently as White House legal counsel; and by Jeb Stuart Magruder, who was deputy di- rector of the Nixon re-election campaign and recently resigned from Government. ? After his arrest, Mr. McCord said, a former White house assistant repeat- edly offered him "executive clemency" and financial aid if he would plead guil- ty and keep silent about the involve- ment of others. ? These offers, Mr. McCord said he was told, came "from the very highest levels of the White House." "I was further told," he testified, "that the President of the United States was aware" of one meeting at which a to the President, and that at a future meeting there would likely be a personal message from the President himself." Not yet "evidence." It was repeat- edly pointed out by Senate-committee members that all this was hearsay evi- dence that would not be acceptable in a court of law. "It is not evidence against the Presi- dent at this stage," said the committee chairman, Senator Sam J. Ervin, Jr. (Dem.), of North Carolina. Nor, he cau- tioned, would the McCord testimony be admissible in court "to show any connec- tion with this matter by John Mitchell or John Dean or Jeb Magruder." ''But," the Senator added, "the testi- mony which Mr. McCord has given is relevant to show the motives which prompted Mr. McCord to participate in the matter." Senator Ervin served notice at the start of the hearings on May 17 that: "My colleagues on the committee and I are determined to uncover all the rele- vant facts . . and to spare no One, what- ever his station in life...... The historic hearings, televised nation- wide, began in the same Senate caucus 22 U. S. NEWS & WORLD REPORT, May 28, 1973 Approved ForRolease 2001/09/04: CIA-RDP84-00499400200010002-2 Sworn testimony of James W. McCord, Jr., linked John N. Mitchell, John W. Dean III, and Jeb Stuart Magruder to Watergate break-in and bugging case. Former Attorney General Mitchell Former White House Counsel Dean Ap roved Fo 7-Wida World Photos Re-election cartipaign side Magruder [continued from page 22] was aired 50 years ago and the Army- McCarthy hearings were held in 1954. It was the first time?after months of secret investigations and frequently sec- ond-band reports? that the American pub- lic had a chance to start getting the full story of the Watergate scandal at first hand, under oath. The mandate given the committee by the Senate was broad?extending far be- yond Watergate itself?and Senator Er- vin made plain his panel would go into campaign skulduggery in any form. Although "the first phase of the com- mittee's investigation will probe the planning and execution of the wiretap- ping and break-in of the Democratic National Committee's headquarters at the Watergate complex and. the alleged cover-up that followed," Senator Ervin said: "Subsequent phases will focus on al- legations of campaign espionage and _ subversion and allegations of extensive violations of campaign financing laws." Goal: "unvarnished truth." The in- vestigating committee is under Demo- cratic . control?with four Democratic and three Republican members. But Sen- ator Howard H. Baker, Jr. (Rep.), of Tennessee, the vice chairman of the com- mittee, said in his opening statement: "Any doubts that I might have had about the fairness and impartiality of this investigation have been swept away during the last few weeks. .. . "This is not in any way a partisan un- dertaking, but, rather, it is a bipartisan search for the unvarnished truth." Other members of the committee arc: Democratic Senators Herman E. Tal- madge of Georgia, Joseph M. Montoya of New Mexico and Daniel K. Inouye of Hawaii; Republican Senators Edward J. Gurney of Florida and Lowell P. Weick- er, Jr., of Connecticut. Each party has its own counsel. Sam- uel Dash, a law professor, represents the Democratic majority, and Fred D. Thompson, a former assistant U. S. at- torney, represents the Republicans. While the Ervin committee did its work in public, four grand juries worked in secret, investigating various phases of scandals spun off by ramifications of the Watergate probe. One federal grand jury, in Washing- ton, D. C., was expected soon to hand down indictments of several former fig- ures in the Nixon official family or in his election campaign. Other congressional committees were also busy investigating alleged misdeeds Rba4der akkalkah% 6CrAi gence Agency in aspects of the Pentagon Papers trial: It was the Ervin committee, however, that held the national spotlight. A- dramatic story. In the first two days of testimony by six witnesses, Mr. McCord's story was easily the most dra- matic. He admitted roles in not only the June 17 Watergate break-in but also in an earlier break-in at the same place On May 30 and also to futile attempts to "bug" the headquarters of the Demo- cratic: candidate, Senator George McGov- ern of South Dakota. Asked why?after an unblemished rec- ord of service with the Central Intel- ligence Agency and Federal Bureau of Investigation?he agreed to take part in such proceedings, Mr. McCord testified: "There were a number of reasons. . . . One of the reasons?and a very impor- -USN&WR Photo Convicted Watergate conspirator McCord said he was offered executive clemency. taut reason to me?was the fact that the Attorney General himself, Mr. John Mitchell, at his offices, had considered and approved the operation, according to Mr. Liddy [G. Gordon Liddy was convicted as one of the planners of the Watergate bugging.] "Secondly, that the counsel for the President, Mr. John Dean, had partici- pated in those decisions with him; that one was the top legal officer for the United States in the Department of Jus- tice and the second gentleman was a top legal officer in the White House." Under questioning of the members of the Senate unit, Mr. McCord explained that he was told of Mr. Dean's participa- tion by Mr. Liddy and by E. Howard 46061312866f66bnnvicted conspira- Foll'tv,'il4L from the record, are other iw?0,1 page) CLAIMS 0F4PicpspettrFor Rele [continued from preceding page] ' highlights of Mr. McCord's testimony before the committee? On CIA involvement: O Now, did you have any knowledge ?direct or indirect?that would lead you to believe or have information that the CIA was involved in this plan? A I had just the contrary?that there was no indication, no evidence, no state- ments to me that this was a CIA opera- tion, that, quite the contrary, that it was an operation which involved the At- torney General of the United States?at that point in time. On "hush" money he received: O Now, after your arrest, did you receive any money? A Yes, I did. ? And from whom did you receive that money? A The wife of E. Howard Hunt, Mrs. Hunt. Can you tell us how much money you did receive? A Yes, I received legal fees of $25,- 000 for the payment of lawyers, and I received a continuance of salary from July through January at the rate of $3,- 000 a month?which the others were re- ceiving as well. O Did you have any knowledge, in- formation or belief as to where this mon- ey came from? A I was told that it came from the Committee to Re-elect the President? by Mrs. Hunt. Details on "clemency." On the offers of clemency, Mr. McCord testified that as early as the autumn of 1972: "Mr. Hunt stated that the defendants were going to be provided with or given executive clemency after a period of time in prison if they pled guilty or if sentenced in a plea of not guilty, that they were going to be given financial support while in prison?that is, their families would be?and that rehabilita- tion, not specified, but rehabilitation and perhaps a job would be provided for the men, after the release from prison." Later, the witness said: "Political pressure from the White House was conveyed to me in January, 1973, by John Caulfield to remain si- lent, take executive clemency by going off to prison quietly." Mr. Caulfield at that time was work- ing in the Treasury Department. Later he joined the White House staff. After Mr. McCord's testimony, White House Press Secretary Ronald Ziegler told reporters: "The President did not participate or have any knowledge of activities relating to cover-up, and the iraitifteaci g.0 Iffelease"gb e ?001M0/04 : CIA-RDP840 49949MEMAANSECUTOR ARCHIBALD COX, former U. S. Solici- tor General, was named on May 18 as special prosecutor to take over the Gov- ernment's investigation of the Watergate case. Announcing the appointment, Elliot L. Richardson, Attorney General desig- nate, described Mr. Cox as a "lawyer of courage, independence and integrity," used to handling "explosive situations." Mr. Cox, 61, is a member of the Har- vard law school faculty. A Democrat, he was appointed Solicitor General in 1961 and served in that post under Presidents Kennedy and Johnson. authorized anyone to represent him in offering executive clemency." Like a spy "thriller." Parts of the McCord testimony sounded like chapters from a spy "thriller." He told of secret meetings in autos on Potomac River overlooks near Washington, of being di- rected to a telephone booth to receive a phone call, and of using a code name? "Mr. Watson"?in his dealings with Mr. Caulfield. Some of his phone callers, he said, were men whom he could not at that time identify. Describing a meeting in a lawyer's office on Jan. 8, 1973, Mr. McCord said he was asked "whose word I would trust regarding a White House offer of executive clemency." He went on: "I had no intention of accepting ex- ecutive clemency, but I did want to find out what was going on and by whom and exactly what the White House was doing now." Conversation in a car. Following is Mr. McCord's account of a conversation in a car on a Potomac River overlook with Mr. Caulfield: "Caulfield stated that he was carry- ing the message of executive clemency to me from the very highest levels of the White House. He stated that . . the President had been told of the forth- coming meeting with me, and would be immediately told of the results of the meeting." Senator Ervin interjected: "This evidence is competent to show what, if anything, John Caulfield did to induce Mr. McCord to plead guilty and keep silent. It is not any evidence in its. present state of the hearings that con- nects, that makes any connection what- ever, has any relevancy to the President." Mr. McCord: "Precisely. He further stated that 'I may have a message to you at our next meeting from the Presi- dent himself.' " 28 ly about Mr. Mitchell's involvement, the following exchange took place: O Now you've also implicated the former Attorney General, Mr. Mitchell, in your testimony as approving and per- haps helping plan?at least being an accessory before the fact?on the Water- gate bugging. Did you ever have any conversations with Mr. Mitchell yourself about that operation? A No, sir, O Neither about Watergate nor any other espionage activities? A No, sir. First day: Mr. Odle. Compared with Mr. McCord's day on the witness stand, the first day of the hearing was relative- ly uneventful. Its main witness was Rob- ert C. Odle, Jr., director of personnel and administration for the Committee for Re-election of the President (CRP). It was this committee, operating in- dependently of the Republican Nation- al Committee, which ran the Nixon cam- paign?and employed two of the seven men convicted last January of partici- pation in the Watergate bugging. Highlights of his testimony were that: ? Mr. Mitchell began making key de- cisions on campaign strategy while he was still Attorney General, many months before he left the Justice Department to become the Nixon campaign manager. ? High White House officials were ac- tive in campaign planning, filling key posts on the Re-election Committee with former presidential aides and sitting in --by proxy?on strategy sessions. ? Unidentified documents were re- moved from the desk of deputy campaign manager Magruder hours after the Water- gate arrests and taken to private homes for "security." Other papers?contents al- so unidentified?were taken to a shred- ding machine. The hearings are expected to last for weeks, with a long parade of witnesses itArroW?Wit ili5Paro?669Rif66b7fer 0002-2 U.S. NEWS 84 WORLD REPORT, May 28, 1973 24 Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES, MONDAY, JUNE 4, 1973 Transcripts of Excerpts From the C.I.A. Memorandums About the Watergate Case Speck/ to The New York limes WASHINGTON. June 3?Following are excerpts from nine memorandums and a note of transmittal by Lieut. Gen. Vernon A. Walters, deputy director of the Central Intelligence Agency, and a memorandum by James R. Schlesinger, Director of Central Intelligence, that were supplied last month to a Senate Appropriations subcom- mittee in connection with its investigation of the Watergate case. The excerpts were transcribed by The New York Times from photocopies of the original docu- ments. The first is a covering note apparently provided to the subcommittee prior to General Walters's testi- mony last month. The excerpts appear in chronological order. COVERING NOTE Dated May 18, 1973 The attached memoranda were never intended to be a full or verbatim account of the meetings they covered. These were notes to ref reh my memory if I should need it. Originally, the only copy was held in my personal files. Apparent inconsistency be- tween my testimony that the President's name was not used by Haldeman in our June 23 conversation and a acia itak had dist 'e--"wimPiagrvftwemew..fier- -I wrote this note five days after the talk. When I showed it to Mr. [Richard] Helms, [Didector of Central Intelli- gence at the time], he point- ed out that Haldeman had not actually used the expres- sion, "It was the President's wish." Obviously the thought was implicit in my mind. I did not, however, correct the memo since it was for my own use only. The fact that I agreed with Helms is shown by my saying to [L Patrick] Gray [Acting Director of the F.B.I.] on 5 July that it was "implicit." And in several other talks, both with Gray and [John W.] Dean [Presi- dent Nixon's counsel], show- ing clearly that I did not be- lieve the President knew. In my talk with Dean on 26 June, I said. "those who were not touched by the mat- ter would be so" if I were to do what Dean wanted. The fifth paragraph of my memo on my talk with him on 28 June covers this also. My whole talk with Gray on 6 July also makes this wiew clear. Paragraph 5 of my memo of July 28 conversation with Gray also reflects this view. With regard to the refer- ence to the Cubans in my notes on my talks with Dean on 28 June, he had expressed the view that there were three hypotheses on the bug- ging: 1) The Committee to Re-elect the President; 2) The C.I.A.; 3) Some other group. He never admitted any par- ticipation by the first group. I told Dean C.I.A. was not ; one and pressed me for ideas. My remarks were intended only as a hypothetical as- sumption. VERNON G. WALTERS MEMO DATED JUNE 28, 1972 On June 23 at 1300 [1 P.M.] on request I called with di- rector Helms on John Ehr- lichman and Robert Halde- man at Ehrliclunan's office at the White House. Haldeman said that the "bugging" affair at the Democratic National Committee headquarters at the Watergate apartments had made a lot of noise and that the Democrats are try- ing to maximize it. The F.B.I. had been called in and was investigating the matter. The investigation was leading to a lot of important people and this could get worse. He asked what the connection with the agency was and the director repeat- ed that there was none. Haldeman said the whole affair was getting embarrass- ing and it was the President's wish that Walters call on Acting Director L. Patrick Gray and suggest to him that, since the five suspects had been arrested, this should be sufficient and that it was not advantageous to have the inquiry pushed, especial- ly in Mexico, etc. Director Helms said he had talked to Gray on the previous day and made plain to him that the agency was not be- hind this matter and that it was not connected with it. None of the suspects was working for it nor had worked for the agency in the last two years. He had told Gray that none of his investigators was touching any covert proj- ects of the agency, current or ongong. Haldeman then stated that I could tell Gray that I had talked to the White House and suggested that the in- vestigation not be pushed further. Gray [was] receptive as he was !tanking for gui- dance In the matter. The director repeated that the agency was not con- nected with the matter. I then agreed to talk to Gray, as directed. Ehrlichman im- plied that I should do this soon and I said that I would try to do it today. Upon leaving the White House, I discussed the mat- ter briefly with the director. Upon returning to the office, I called Gray [and] indicated that this was a matter of some urgency, and he agreed to see me at 1430 [2:30 P.M.] that day. VERNON G. WALTERS Lieutenant General, U.S.A. MEMO DATED JUNE 28, 1972 At 1430 on 23 June I called on the acting director of the F.B.I., L. Patrick Gray, at his office in the F.B.I. building and saw him alone. I said that I had come to see him after talking to the 'White House." I dited no names and he asked for none. I added that I was aware of the director's conversation with him the previous day and while the further inves- tigation of the Watergate affair had not touched any current or ongoing covert projects of the agency, its continuation might lead to r trri-ritr. and the agency had an agree- ment in this respect and that the bureau had always scru- pulously respected it. Gray said that he was aware of this and understood what it was conveying. His problem was horn to low-key the matter now that it was launched. He said that a lot of money was apparently in- volved and that it was a matter of a check on a Mexi- can bank for $89,000. He asked if the name "Dahl- berg" meant anything to me and I said it did not. But that was not really signifi- cant as I had only been with the agency for a few months. Gray then said that this was a most awkward matter to come up during an elec- tion year and he would see what he could do. I repeated that if the investigations were pushed "south of the border" it could trespass on some of our covert projects and, in view of the fact that the five men involved were under arrest, it would be best to taper off the matter there. He replied that he under- stood and would have to study the matter to see how it could best be done. He would have to talk to John Dean about it. Gray said he looked forward to cooperat- ing closely with the agency. After some pleasantries about J. Edgar Hoover and our past military careers, I left saying that my job had been an awkward one but he had been helpful and I was grateful. EM A ED JUNE 28, 1972 June 26 at about 10 A.M. I received a phone call from Mr. Dean at the White House. He said he wished to see me about the matter that John Ehrlichman and Bob Halde- man had discussed with me on the 23d of June. I could check this out with them if I wished. I agreed to call on him at his office in Room 106 [of the] Executive Office Build- ing at 1145 that morning. Immediately after hanging up, I called Ehrlichman to find out if this was all right and after some difficulty I reached him and he said I could talk freely to Dean. At 1145 I called at Dean's office and saw him alone. He said that the investigation of the Watergate "bugging" case was extremely awkward and that there were a lot of leads to important people and that the F.B.I., which was in- vestigating the matter, was working on three theories: 1) It was organized by the Re- publican National Committee; 2) It was organized by the C.I.A.; 3) It was organized by some other party. I said that I had discussed this with Director Helms and I was quite sure that the agency was not in any way involved and I knew that the director wished to distant himself and the agency from the matter. Dean then asked whether I was sure the agency was not involved. He believed that Barker had been involved in a clandestine entry into the Chilean Embassy. 1 said that I was sure none of the sus- pects had been on the payroll for the past two years. Dean then said that some of the accused were getting scared and "wobbling." I said that even so, they could not implicate the agency. Dean then asked whether there was not some way that the agency could pay bail for them (they'd been unable to raise bail), added that it was not just bail, but that if these men went to prison could we [the CIA.] find some way to pay their salaries while they were serving out their con- victims? I said that I must be quite clear. I was a deputy director and as such had only author- ity specifically delegated to me by the director and was not in the chain of command but that the great strength of the agency and its value to the President of the United States lay in the fact that it was apolitical and had never gotten itself involved in po- litical disputes. Despite the fact that I had only been with the agency a short time. I knew that the director felt strongly about this. I then said that as big as the troubles might be with the Watergate affair, if the agency were to provide bail and pay salaries, this would become known sooner or later in the current "leak- ing" atmosphere of Washing- ton and that at that point, the scandal would be 10 times greater, as such action could only be done upon di- rection at "the highest level" and that those who were not touched by the matter now certainly would be so. Dean seemed at first taken aback and then very much impressed by this argument and said that it was certainly a very great risk that would have to be weighed. I re- peated that the present affair would be small potatoes com- pared to what would happen if we did what he wanted and it leaked. He nodded gravely. I said that, in addition, the agency would be completely discredited with the public and the Congress and would lose all value to the Presi- dent and the Administration. Again he nodded gravely. He then asked if I could think of any way we could help. I said that I could not think of any but I would discuss the matter with the directors and would be in touch with him. However, I felt that I was fully cogni- zant of the director's 4eel- ings in the matter. He thanked me and I left. VERNON G. WALTERS MEMO DATED JUNE 29, 1972 On 28 June, at 1130, John Dean asked me to see him at his office in the Executive Office Building. I found him alone. He said that the director's meeting with L. Patrick Gray, F.B.I. director, was canceled and that Joihn Ehrlichman had suggested that Gray deal with me instead. The problem was how to stop the F.B.I. investigation beyond the five suspects. Leads led to two other peo- ple?Ken Dahlberg, and a Mexican named Guena. Dean said that the $89,000 was only related to the bugging case and that Dahlberg was refus- ing to answer questions. Dean then asked hopefully whether I could do anything or had any suggestions. I repeated that as the dep- uty director, I had no inde- pendent authority. I was not in the chain of command and had no authority other than that given me by the director. The idea that I act indepen- dently had no basis in fact. Dean then asked what might be done and I said that I realized he had a tough problem, but if there were agency involvement, it could risks that were concomitant appeared to me to be unac- ceptable. At present it was a high- explosive bomb but interven- tion such as he suggested could transform it into a megaton hydrogen bomb. The present caper was awkward and unpleasant. Direct inter- vention by the agency would be electorally mortal if it be- came known and the chances of keeping it secret to the election were almost nil. I noted that scandals had a short life in Washington and that other newer, spicier ones soon replaced them. I urged him to not become un- duly agitated by this one. He then asked if I had any ideas and I said that this af- fair already had a strong Cuban flavor and that every- one knew that the Cubans were conspiratorial and anx- ious to know what the poli- cies of both parties would be toward Castro. They, there- fore, had a plausible motive for attempting this amateur- ish job which any skilled technician would deplore. This might be costly but it would be plausible. Dean said he agreed that this was the best tack to take, but it might cost a half million dollars. He also agreed (for the second time) that the risks of agency in- volvement were unacceptable. After a moment's thought, he said that he felt that Gray's cancellation of the appointment with Director Helms might well be reversed within the next few hours. Dean thanked MP anti T left. VERNON G. WALTERS MEMO DATED JULY 5, 1972 MEMO FOR THE RECORD On July 5, '72 at 5:50 P.M., I received a phone call from the acting director of the F.B.I., L. Patrick Gray. He said that the pressures on him to continue the investiga- tion were great. Unless he had documents from me to the effect that their (F.B.I.) investigation was endanger- ing national security, he would have to go ahead with the in- vestigation of Dahlberg and Daguerre. He had talked to John Dean. I said I could not give him an immediate an- swer but would give him one by 10:00 on 6-July. He said that would be agreeable. VERNON G. WALTERS MEMO DATED JULY 6, 1972 At 10:05 on 6 July 1 saw acting director L. Patrick Gray at his office. We were alone during our conversa- tion. I handed him the memo- randum which is attached and said that it covered the entire relationship between the Watergate suspects and the agency. In all honesty I could not tell him to cease future in- vestigations on the grounds thta it would compromise the security interests of the United States. Even less so could I write him a letter to this effect. He said that he fully understood this. He him- self had told Ehrlichman and Haldeman that he could not possibly suppress the investi- gation of this matter. Even within the F.B.I. there were leaks. He had called in the components of his field office in Washington and chewed them out on this case because information had leaked to the press concern- ing the Watergate case which only they had. I said that the only basis on which he and I could deal was absolute frankness and I wished to recount my in- volment in this case. I said that I had been called to the White House with Director Helms and had seen two senior staff assistants (I specifically did not name Haldeman and Ehrlichman). I said that we had been told that if this case were investigated further, it would lead to some awkward places, and I had been di- rected (the implication being that the President directed this although it was not spe- cifically said) to go to acting director Gray and tell him that if this investigation were pursued further, it could uncover some ongoing covert operations of the agency. I had done this. Subsequently. I had seen Mr. Dean, the White House counsel, and told him that whatever the current and present implications of the Watergate case were, that to implicate the agency would not serve the President but would enormously increase the risks to the President. I had a long association with the President and was as desirous as anyone of protecting him. I did not be- lieve that a letter from the agency asking he F.B.I. to lay off this investigation on spurious grounds that it would uncover covert opera- tions would serve the Presi- dent. Such a letter in the current atmosphere in Washington would become known prior to election. What was now a minor wound would become a mortal wound. I said quite frankly that I wouldn't write such a letter. Gray thanked me for my frankness and said that this opened the way for fruitful cooperation between us. He would be frank with me, too. He could not suppress this investigation with the F.B.I. He had told Kleindienst this. ir a e weard pre- fer to resign, hut his resigna- tion would raise many ques- tions that would be deteri- mental to the President's interest. He did not see why he or I should jeopardize the integ- rity of our organizations to protect some mid-level White House figures who had acted imprudently. He was pre- pared to let this go to Ehrlich- man, to Haldeman, or to Mitchell, for that matter. He felt it important that the President should be protected from his would-be protectors. He had explained this to Dean as well as to Ehrlich- man and to Haldeman. He said he was anixous not to talk to Mitchell be- cause he was afraid that at his confirmation hearings he would be asked whether he had talked to iMtchell about the Watergate case and he wished to be in a position to reply negatively. He said that he would like to talk to the President about it but he feared that a request from him to see th President would be misinterpreted by the media. I said that if I were di- rected to write a letter him saying that the future investigation of this case would jeopardize the security of the United States and covert operations of the agency, I would ask to see the President and explain to him the disservice 1 thought this would do to his interest. The potential danger to the President of such a course far outweighed any protec- tive aspects it might have for any other figures in the White House and I was quite prepared to resign myself on this issue. Gray said he un- derstood this fully and hoped I would stick to my guns. I assured him I would. Gray then said though this was an awkward posi- tion, our mutual frankness had created the basis for a new and happy relationship between the two agencies. I said the meorandum I had given him described in detail the exact measure of agency involvement and noninvolve- ment in this case, including information on Dahlberg and Daguerre. He thanked me again for my frankness and confidence and repeated that he did not believe that he could sit on this matter and that the facts would come out eventually. He walked me to the door. VERNON G. WALTERS MEMO DATED JULY 13, 1972 On 12 July at 14150 I called on acting director L. Patrick Gray at his office and saw him alone. I told him that shortly after I had seen him the last time and given him the memorandum concerning for- mer C.I.A. association of the suspects in the Watergate case, I had since discovered one additional item concern- ing Howart Hunt. I gave him that memorandum concern- ing the assistance given to Hunt, which terminated in August, 1971, when his de- mands escalated to an inap- propriate level. We had as- sisted him following a request from the White House and it was our understanding that it was for the purpose of tracking down security leaks in the Government. He thanked me and said that this case could not be snuffed out and it would lead quite high politically. Dahlberg was in the clear. He had gotten the check from Maurice Stens and deposited it in the Mexican bank. It was undoubtedly political money. Last Friday, the President called [Gray] to congratulate him on the F.B.I. action which had frustrated the aircraft hijacking in San Francisco. The President asked him if he had talked to me about the case. Gray replied that he had. The President then asked him what his recommenda- tion was on the matter. Gray had replied that the case could not be covered up and would lead quite high and he felt that the President should get rid of the people that were involved. Any attempt to involve the F.B.I. or the C.I.A. in this case would only prove a mortal wound (he used my words) and would achieve nothing. The Presidlent then said, "Then I should get rid of whoever is involved no mat- ter how high?" Gray replied that was his recommenda- tion. The President then asked what I thought and Gray said my views were the same as his. The President took it well and thanked Gray. Later that day, Gray had talked to Dean and repeated the converstien to him. Dean had said, "Ceee." Gray had heard no more on the subject. He asked whether the Persident had spoken to me and I said he had on another matter but had not brought up this mat- ter with me. Gray then said that the U. S. Attorney had sub- poenaed the financial rec- ords of the Committee to Re-elect the President. It had been suggested to him that he stop this. He had replied that he could not. Whoever wanted this done should talk to the Attorney General and _ass. it Share was assr legal way to do this. He could not. He said that he had told the President in 1968 that he should beware of his sub- ordinates who try to wear his Commander in Chief stripes. I agreed, saying that in my view the President should be protected from the self-appointed protectors who would harm him while trying to cover their own mistakes. Gray said that our views coincided on this matter. He would resign on this issue if necessary and I said that in maintaining the integrity of our agencies we were render- ing the President the best possible service. I too, was quite prepared to resign on this issue. He thanked me for my frankness and said that we had established a warm, per- sonal, frank relationship at outset of our tenure in our respective jobs. VERNON G. WALTERS MEMO DATED JULY 28, 1972 [11 On Friday, July 28, 1972, at 11 A.M. I called an the acting director 'of the F.B.I., L. Patrick Gray, at his office In the F.B.I. building. He saw me alone. I said I had come to clarify the last memoran- um I had given him in reply to inquiries from Mr. Pirham "Cleo." [21 I said that "Cleo" was Mr. Cleo [blank], an electronics engineer who was in contact with Mr. Hunt during August of 1971. Mr. [blank] supplied a recorder pursuant to Mr. Hunt's request and had as- sisted him to get it in shape for use in overt, not clandes- tine, recordings of meetings with agents. There was no attempt to make the recorder useful for clandestine activi- ties . Mr. [blank] had two addi- tional meetings, generated by a phone call to the above number (a sterile telephone in one of our offices), to straighten out some difficul- ties that had arisen with re- spect to the microphones. We never recovered the recorder. Aside from the above con- tact with respect to the re- corder, there wer econtacts with Mr. Hunt with respect to false documents and dis- guises for himself and an associate. He was also loaned a clandestine camera, which he returned. We developed one roll of film for Mr. Hunt, of which we have copies showing some unidentified place, possibly the Rand Corporation. We had no con- tact whatsoever with Mr. Hunt subsequent to 31 Au- gust 1971. He thanked me for this in- formation. I added that when Hunt's requested had esca- lated, we terminated our assistance to him and had no further contact with him sub- sequent to 31 August 1971. He vas grateful for this in- formation. Gray asked me if the Presi- dent lad called me on this matter and I replied that he had rot. Gray then said a lot o pressure had been brouglt on him on this mat- ter be he had not yielded. I toll him that we intended to teiminate the 965-9598 nuance- [the C.I.A.'s sterile phone and he nodded. Then he sail, "This is a hell of a think co happen to us at the outset of our tenure with our respective offices." I agreed hearfiy. [7] Hethanked me for coming to se him and for maintain- ing itch a frank and forward relathnship with him. I left him short, unsigned memo embdying what I had told him. Vernon A. Walters SCILESINGER LETTER lated Feb. 9, 1973 Subect : Telephone Call Frog John Dean. Tis evening at 6:10 T re- ceivd a telephone call from Johr Dean at the White Holm Dean indicated that he *anted to discuss two topic Fie, he [referred] to a packt of material that had been3ent to the Department of Jetice in connection with the eatergate investigation. He aggested that Justice be reqtred to return this pack- agea the agency [the C.I.A.]. Te only item that would be rt at Justice would be a cat in the files indicating thal t package had been re- turret to the agency, since the material in the package was.no longer needed for the Purotes of the investigation. lie nd.cated that the agency hacbriginally provided these materials to the Department of Justice at the request of the [Assistant] Attorney Gen- eral, Mr. [Henry E.] Petersen. The second subject that he raised was the pending in- vestigation by the Senate on the I.T.T. affair in relation to the Chilean problem. He felt that this investigation could be rather explosive. He also indicated that there might be some sensitive cables at the agency that might be re- quested by the Senate investi- gators. I indicated to him that while I had not seen any cables, I had been briefed on the subject, and that the role of the Government appeared to be clean. He expressed his delight at hearing this assess- ment. I indicated that I would look into the cables for that period. In this connection, he men- tioned that there is a hot story being passed about in the press, primarily instigated by Seymour Hersh of The New York Times. The story suggests that [Frank] Sturges, who sometimes went by the code name Federini, was the individual responsible for the burglarizing of the Chilean Embassy in Washington. He also indicated that he expected Senator [J.W.] Ful- bright to request the Justice Department to produce Stur- gis for the Senate hearings. I indicated that I would look further into the matter. He then made some rather jovial remarks about not al- ways being the bearer of bad tidings, and I inquired what the good news might be. Fur- ther references were made to a pending appointment at the A.E.C. Shortly thereafter, I dis- cussed those matters with Bill Colby [then a high-rank- - -- ing C.I.A. official], who in- dicated that Sturgis had not been on the payroll for a number of years and that whatever the allegations about the Chilean Embassy, the agency had no connec- tion at all. We also agreed that he would discuss the question of the package realtive to the Watergate investigation with General Walters and a discussion would be made with regard to the appropri- ate action. J. R. S. cc: General Walters (James R. Schlesinger) MEMO DATED MAY 11, 1973 MEMORANDUM OF CONVERSATION OF FEB. 21, 1973 At the request of the di- rector, Dr. Schlesinger, I called on Mr. John Dean in his office at the White House at 4:30. I explained to him that, in connection with his request that the agency ask the De- partment of Justice to return a package of material that had been sent to them in connection with the Water- gate investigation, it was quite impossible for us to request the return of this, as this would simply mean that a note would he left in the Department of Justice files that the material had been sent hack to the agency, and we had been asked not to destroy any material in any way related to the case. I again told him that there was no agency involvement in this case, and that any attempt to involve the agency could only be harmful to the United States. He seemed dis- appointed. I then left. VERNON A. WALTERS 4111.????? Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 ,"144440,08eavasowsvo---* McCord Vhargeastaiiie:DeyniedRo Continued From Page A-1 Coast. It was Caulfield, sources, told the grand mid, at that time had au- will emerge as the central who wanted to talk about a jury that he showed the there was a personal thority to order wiretaps figure in the wiretap oper-. letter he had just received, letter to Dean. Dean soonfriend who was involved. for domestic security rea- anon, which was conduct- thing to go into it, that I sons and might have had ed under the guise of na- Fielding said. got in touch with Caulfield ? ? ? It was a very Painful would be glad to do it at a information regarding donut security. McCord is As Fielding recalled it, and told him to contact Caulfield told him "the McCord with the offers, threatened disorders. expected to make the dis- cmtent of the letter was the sources said. later time, that I hoped "information which I felt I closures under creases. 'they were trying to place they would defer that might not be privy to and amination, with later wit- this matter (the bugging) CAULFIELD reportedly question until subsequent Mr. Liddy might not be nesses adding details. at the feet of the CIA, it told the grand jury thatThe Sun quoted one See- questioning and I would be privy M. . . .'' doesn't belong there, and the lest time he saw the glad to answer it. They ate source as saying, Adding to his "appre- trees in the forest will hands. Whether it is still in saltleithe'rmoaCdodrdsn'OS: his vhrilsci:i.ne" aabtout possible .6.1,1c.i.syeetr,;sotnaeple:d pr:re:_ theR if it is placed there, all the letter, it was in Dean's attorney, Bernard Fen- ca. They were running a fall.' The letter said to existence is not known. publican National Con ea. it on and tell them McCord also alluded sterwald, could be reached vention, McCord said police state when they had that if that's what they several times during following the hearings to w authority." ere FBI intelligence re- want to happen, they are yesterday's statement to be asked why McCord had ports he had received from In other testimony pro. onthe right course, and his contention that hisnever mentioned the Dee the internal security divi- terday, McCord said that: the letter was unsigned." home telephone had been cember letter to Caulfield sion of the Justice Depart- ? Liddy was given a budg- Caulfield, Fielding con- tapped, and that he had so in any forum. mem ? reports obtained et of $300,M0 to 9350,100 for tinned, said he didn't know stated in a motion filed with the help of the Justice political espionage, clan. mist the letter was from. last fall before the trial McCORD earlier told Department ? reports destine photography and "He said the only people j.?,,,,, the Senate committee that obtained with the he) of bogging activities that no. hecould think that it could The prosecutors, reply- it was Liddy, former co.- the division's former eluded planned operations possibly he from, and it ing to McCord's motion, tel to the re-election con, director, Robert C. Mardi- at the Watergate, Sen. was surmise on his part, said they had checked fed- mittee and later to its fi- an, then with the re-ele, George McGovern's cam- eral law enforcement rece non committee. paign headquarters on would be either Mr. (G. nonce unit, who first drew Gordon) Liddy or Mr ords and could find no ins him into the Watergate Capitol Hill and the Demo- McCord dication that a tap had scheme in early January McCORD TESTIFIED erotic National Conven- ..." Fielding said he relayed ever been put on McCord's 1972. that at his request, Robert non. Only the Watergate Liddy told him that the break-in actually took the message to Dean when phone, C. Odle Jr., the cam' returned from Califor- However. Caulfield re- OPeretion was being mittee's office manage, Plac? nia, and said Dean said, Portedly told the grand Platin0d bY then-AttY. Gen. "sent a memorandum ? Howard Hunt, another "Well, it was ProbablYi of the convicted Watergate ury that McCord had said John N. Mitchell, presi- to Mr. Mitchell asking for McCord.' or something toonspirators, "indicated to that effect ..." he had telephoned some eiliecnettiaolncocounsmmielt,Deadne,,r,ye- approval of my contact conspirators, that he had separate. foreign embassies he knew with that organization" independent knowledge,. The letter as Fielding were regularly tapped by director .Teb S. Magruder (the internal security divi. the federal government, that Mr. Mitchell and Mr. described it seems to r, and Liddy himself, Mc- sion of Justice). fleet the deep loyalty and suggested that Caul- Cord said. "The next I heard was a Dean and Mr Magruder McCord held for the CIA, Asked why he agreed to had planned the opera- field have the White Home call from Mr. Mardian M where ho. worked as a sc. check again to see if Mc- participate in an illegal which he referred to that tions in the Attorney curtsy officer from 1951Cord's voice could be break-in at the Watergate memorandumsnot- and he s Generals ()ffice. Hunt also referred. in after spending a lifetime eel mat Mr Mitchell had through 1970. picked up on those taps. i conversations about Wa- n law enforcement for the given approvM to my con- BourizA,En, sources say McCord wm pp sly FBI and CIA, McCord tact to acquire that type a mrgate planning, to his Caulfield told the grand hoping that having his former White /IOUS? SUPC- jury that the letter also et/tee discovered on a goy- rePiied: rior, Charles W. Colson. At information . . . such in- "One of the reasons. and formation as did affect, reflected a stronger state- ernmentmrdered wiretap one point, NIcCord testi- might cast enough douM a very important reason to might affect, the security tnent by McCord - - that if fel the prosecution's evi- me. Was the fact that the of f ho fro_oLoofion, Bed, Hum held a break-in dome to have the caseattorney generai himself, jr.josgujite, ?? ?pyl,u,ndoinnthinhen,uid,,,a,n,dofsniel, , thrown out on a technicali- Mr. John Mitchell, had at From mid-May until las ty, according to sources, his office considered and June 17 arrest at the Wa? will see Colson." McCord approved the operation, tergate , he received said he concluded flues McCORD EXPLAINED according to Mr. Liddy. "almost daily" reports ? "was going to see Mr. Cal. not having previously including FBI reports ? son and discum our giving mentioned the Caulfield "SECONDLY, that the from two offkus a, , him the operational plan." meeting by saying he had counsel for the President, internal security division, Colson has consistently wanted to collect his Mr. John Dean, had par- McCord said. denied any knowledge of thoughts first on so impor- ticipatcd in those decisions McCord said he the Watergate brmk-in, tant a matter. "1 wanted with him. One was the top "understood" the Demo- and publicly asserted he to he as accurate as I legal officer for the United erotic party was given has passed a lie detector mild because it involved States at the Department similar access to intelli- test on that question. the President of the United of Justice, and the second gence reports about possi- ? While serving as securis States, in my opinion," he gentleman the top legal ble convention disruptions, ty director for the re-elec- told committee counsel officer in the White House. although Democratic offi- tion committee, McCord Samuel Dash. . . . clots have emphatically received a salary' a Asked why he had not McCord said the re- denied ever receiving such 520,00o annually. In fold floethe grand jury of the election committee had information. lion, LUSO paid him 52,000 meetings with Caulfield, many reports of potential a month in cmh during the McCord replied, "When I violence at the August TODAY'S Baltimore Sun appeared before the grand Republican National Con- Manning phase of the quotes soto-ces as saying Watergate operation. III told them that ? I vention, and indicated that that the Senate committee After his arrest, McCord raised the question about he believed the Watergate will be told next week of a received a total of $46,000 political pressure that had bugging might have been national network a wire- in cmh from Mrs. Hunt, been put onto me by the planned in mrt to obtain tam used to suPPlY midi- who was It killed in a Hunts (E. Howard Hunt information about disrup- cal information to the Nix- December plane crash in Jr. and his wife, Dorothy, tions by demonstrators. on campaign committee. Chicago. Some 525,000 of If is now dead). The attorney general, he Mardian, the paper said, this amount was for "legal About a halfehour after he began his Senate testi- mony yesterday morning, McCord began reading from a prepared statement which said in part: "Political pressure from the WNte House was con- veyed to me in January 1973 by John Caulfield to remain silent, take execu- tive clemency by going off to prison quietly, and 1 was told that while there I would receive financial aid, and later rehabilita- tion and a job. "I was further told in a January meeting M 1973 with Caulfield that the President of the United States was aware of our meeting, that the results of the meeting would be con- veyed to the President, and that at a future meet- ing there would likely be a personal message from the President himself." McCORD SAID the three meetings in questinn took place on Jan. 12, 14 and 25 although he was first contacted in connec- tion with the matter by an unknown caller the night of Jan. 8, the day the Wa- tergate trial began. McCord has now testi- fied before the Watergate grand jury, the Senate stall, ill open before the full cemmittee yesterday, and in one full and one partial pre-trial deposition in connection with the re- lated Watergate 'aso suits. In none of these, howev- er, has he ever mentioned a letter he mailed to Caul- field in late December. The letter was unsigned, hut Caulfield. according to sources, has told the grand jury that he has confirmed that it was in fact from McCord. The letter is mentioned coincidentally in a deposi- tion, released yesterday, by Fred Fielding, a Dean aide who took part in emptying he safe in the White House office of Wae. tergate mnspirator E. Howard Hunt Jr. two days after [beeline 17 arrests. FIELDING, WHO also testified a he trial, said in his deposition that around 11ec. 31 he re- ceived 0 fall for Dean. who was den on the West prevent his going to jail, then he would tell every- thing he knew. This differs somewhat from McCord's portrayal of himself. both in his tes- timony yesterday and in his 383-page deposition in the civil case, as a man who was primarily con- cerned with having the truth came out, no matter what. At one point in his state- ment yesterday, NIcCord says of Inct offers transmit- ted by Caulfield, "My re- sponse was that I felt si massive injustice was being done, thm I was dif- ferent than tile others, that I was going to fight the fixed case, and had no in- tention of either pleading guilty, taking executive clemency or agreeing to remain silent." Caulfield, according to McCord's Here is the text of a statement James McCord read to smators _yesterday after being asked about political ressure on him to keep silent: SUBJECP: POLITICAL PRESSURE ON THE WRUER TO ACCEPT EXECUTIVE CLEM- ENCY AND REMAIN SILENT : Political pressure from the White House was conveyec to one in January 1973 by John Caulfield to remah silent, take executive clemency by going ofl to prison quietly and I was told that while than I would receive financial aid and lat- er rehablitation and a job. I was further told in a January meeting in 1973 with Catlfield that the President of the United States was aware of our meeting, that the results of the meeting would be conveyed to the Presi- dent, ad that at a future meeting there would likely be a personal message from the President himself. The dates of the telephone calls net forth below are the correct dates to the best of my rec- ollection On the afternoon of Jan. 8, 1973, the first day of the Watergate trial, Gerald Alch, any attorney, told me that William 0, Bittman, attorney for E. Howard Hunt, wanted to meet with me at Bittman's office that afternoon. When I asked why, Alch said that Bittman wanted to talk with me about "whose word I would trust regarding a White House offer of executive clemency." Alch added that Bittman wanted to talk with both Ber- nard Barker and me that afternoon. I had no intention of accepting executive clem- ency, but I did want to find out what was going on, and by whom, and exactly what the White House was doing now. A few days before, the White House had tried Inlay the Watergate oper- ation off on CIA, and now it was clear that I was going to have to find out what was up now. To do so involved some risks. To fail to do so was in my opinion to work in a vacuum regarding White House intentions and plans, which involved even greater risks, I felt. AROUND 430 P.M. that afternoon, Jan. 8, while waiting for a taxi after the court session, Bernard Barker asked my attorneys and me if he couid aide in the cab with us to Bittman's office which we agreed to. There he got out of the cab and went up towards Bittman's office. I had `men under the impression during the cab ride tha: Rittman was going to talk to both Bar- ker and tie jointly, and became angered at what seemed b me to be the arrogance and audacity of another man's lawyer calling in two other lawyer's clients and pitching them for the White House. Alch saw my anger and took me aside for about a half hour after the cab arrived in front of Rittman% office, and let Barker go up alone. Aboutb p.m. we went up to Bittman's office. There Alt disappeared with Bittman, and I sat alone in Bittman's office for a period of time, became reitated, and went next door where Ber- nard Shaikman and Austin Mittler, attorneys for me and Hunt respectively, were talking about legitimat legal matters. Alch finally came back, took me nide and said that Bittman told him I would becalled that same night by a friend I had known fora the White House. I assumed this would Ix John Caulfield who had originally re- THEwmt9,spfx4 DAILY 115,1?, A-11 This is the phone booth near the Blue Faun- tain Inn in Rocicville where James McCord Jr. says he received offers of executive clemency from a White House representa- tive if he would agree to "plead guilty" in the Watergate breakin case and then keep quiet, fees'' and the remainder for "salary'. at a rate of 93,000 ner month. NIcCord testified. ? Al no ante was there any indication that the CIA was involved in the Watergate operation, ei- ther before or offer the Wage pact ST. LOUIS (AP) ? The president of strikebound Mark Air Lines has tols stockholders that the coin party has offered mechan- ics a contract which would pay technicians with six months' experience 013,795 a year. Edward J. Crane, ad- dressing more than MO stockholders at an annual meeting yesterday defncd- break-in itself. "I had just the contrary . . that it was an opera tic n which involved the attorney gen- eral of the United States . . . involved the cnunsel to the White House. in- volved Mr. Jeb Magruder, and Mr. Liddy . " McCord said. Offered ed the company offer by calling it one "that would allow our employes to be the highest paid in the industry.?' Mechanics for other air- lines make about 513,104, Crane said. The Aircraft Mechanics Fraternal Association, on strike since April 19, meanwhile asked for a resumption in negotia- tions. Statement on Political Pressure cruited me for the Committee for the Re-Election of the President position. Ab an 12:30 p.m. that same evening, I received a call from an unidentified individual who said that Caulfield was out of town, and asked me to go to a pay phone booth near the Blue Fountain Inn on Rte. 355 near my residence, where he had a message for me from Caulfield. There the same individual called and read the following message: "Plead guilty." One year is a long time. You will get Executive Clemency. Your family will be taken care of and when you get out you will be rehabilitated and a Job will be found for you. "Don't take immunity when called before the grand jury." The same message was once again repeated, ob- viously read. I told the caller I would not discuss such matters over the phone. He said that Caulfield was out of town. ON WEDNESDAY evening, Jan. 10, the same party called and told me by phone that Jack would want to talk with me by phone on Thursday night, Jan. 11, when he got back into town, and requested that I go to the same phone booth on Rte. 355 near the Blue Fountain Inn. He also conveyed instruc- tions regarding meeting Caulfield on Friday night, Jan. 12. On Thursday evening, Jan. 11. the same PBMY called me at home and Mid me that Cauilield plane was late and that he wanted to meet with me personally the same evening after arrival. I told him that I would not do so but would meet with him Friday night it he desired. Later that evening about 9:30 p.m., Caulfield called me on my home phone and insisted on talking with me but my family re- fused to let him do so, since I was asleep. On Friday night, Jan. 12, from about 7:00 p.m. to 7:30 p.m. I met with Caulfield at the second over- look on George Washington Parkway in Virgina and talked with him in his car. Caulfield advised that he had been attending a law enforcement meeting in San Clemente, Calif., and had just returned. I ad- vised him that I had no objection to meeting with him to tell him my frame of mind bet that I had sa intention of talking executive clemency or pleading guilty; that I had come to the meeting at his request and not of my own, and was glad to tell him my views. HE SAID THAT the offer of executive clemency which he was passing along and of support while in prison and rehabilitation and help toward a job lat- er "was a sincere offer." He explained that he had been asked to convey this message to me and was only doing what he was told to do. He repeated the last statement several times. My response was that I would not even discuss executive clemency or pleading guilty and remain- ing silent, but I was glad to talk with him, so that there was no misunderstanding on anyone's part about it. Caulfield stated that he was carrying the message of executive clemency to me "from the very highest levels of the White House." He stated that the Pres- ident of the United States was in Key Biscayne, Fla., that weekend, had been told of the forthcom- ing meeting with me, and would be immediately' told of the results of the meeting." He further stated that "I may have a message to you at our next meeting from the President himself." I ADVISED Caulfield that I had seen the list of witnesses for the trial and had seen Jeb Magruder's name, appearing as a government witness. I ad- vised him that it was clear then that Magruder was going to perjure himself and that we were not going . to get a fair trial. Further I told him that it was clear that some of those involved in the Watergate. case were going to trial, and others were going to be covered for (I was referring to John Mitchell, John Dean and Magruder) and that was not my idea of American justice. I further advised Caulfield that I believed that the government had lied in denying electronic intercep- tion of my phone calls from my residence since June 17, 1972, and that I believed that the adminis- tration had also tapped the phones of the other de- fendants during that time. I mentioned two specific calls of pane which I had made during September and early October 1972, which I was certain had been intercepted by the government, and yet the government had blithely denied any such tapping. I compared this denial to the denial the govern- ment had made in the Ellsberg case, in which for months the government had denied any such imper- missible interception of the calls and yet in the stmmer of 1972 had finally been forced to admit mem when the judge ordered, by court order, a search of about a dozen government agencies, and calls intercepted were then disclosed. I STATED that if we were going to get a fiction of a fair trial, through perjured testimony to begin with, and then for the government to lie about ille- gal telephone interceptiOns, that the trial ought to be kicked out and we start all over again, this time with all of those involved as defendants. At least in this way, "some would not be more equal than others" before the bar of justice and we would get a fair trial. The executive clemency offer wa made two or three times during this meeting, as I recall, and I repeated each time that would not even discuss it, roe discuss pleading guilty, which I had been asked sods in the first telephone call received on the night of Jan. 8, from Caulfield's friend, whose identity I an not know. I told him that I was going to renew tie motion on disclosure of government wiretapping cf our telephones. Caulfield ended the conversation by stating that le would call me the next day about a meeting that some afternoon, Saturday, Jan. 13, and that if I did rot hear from him, he would want to talk with nte In telephone on the evening of Monday, Jan, 15, 1)73. I DID NOT HEAR from Caulfield on Saturday but m Sunday afternoon he called and asked to meet Be that afternoon about an hour later at the same location on George Washington Parkway. He stated that there was no objection to renewing the motion m discovery of government wiretapping, and that if Shot failed, that I would receive executive clemency dter 10 to 11 months. I told him I had not asked myone's permission to file the motion. Ile went on to say that "the President's ability to gwern is at stake. Another Teapot Dome scandal is mssible, and the government may fall. Everybody eon is on track but you. You are not following the game plan. Get closer to your attorney. You weem tr be pursuing your own course of action. Don't talk if called before the grand jury, keep silent, and do the same if called before a congressional commit- tee." My response was that I felt a massive injustice was being done, that I was different than the others, that I was going to fight the fixed case, and had no intention of either pleading guilty, taking executive clemency or agreeing to remain silent. He repeated the statement that the government would have diffi- culty in continuing lobe able to stand. I RESPONDED that they do have a problem, but that I had a problem with the massive injustice of the whole trial beng a sham, and that I would fight it every way I knew how. He asked for a com- mitment that I would remain silent and I responded that I would make none. I gave him a memorandum on the dates of the two calls of mine in September 1972 and October 1972 that I was sure had been in- tercepted, and said that I believed the government had lied about them. He said that he would check and see if intact the government had done so. On Monday night, Jan. 15, 1973, Caulfield called me again at the phone booth on RTE. 355 near my residence. I informed him that I had no desire to talk further, that if the White House had any inten- tion of playing the game straight and giving us the semblance of a fair trial they would check into the perjury charge of mine against Magruder, and into the existence of the two intercepted calls previously referred to, and hung up. On Tuesday morning, about 7:30 a.m., Caulfield called my residence but I had already left for court. ON TUESDAY evening, Caulfield called and asked me again to meet with him and I said not un- til they had something to talk about on the perjured testimony, and the intercepted calls. Ile said u?ords to the effect "give us a week,- and a meeting was subsequently arranged on Jan. 25, 1973 when he said he would have something to talk about. About 10:00 a.m. on Thursday, Jan. 25, 1973, in a meeting lasting until about 12:30 a.m., we drove in his car toward Warrenton, Va., and returned, and a conversation ensued which repeated the offers of executive clemency and financial support while in prison, and rehabilitation later. I refused to discuss He stated that I was "fouling up the game plan." I made a few comments about the "game plan." He said that "they" had found no record of the interception of the two calls I referred to, and said that perhaps it could wait until the appeals, lie asked what my plans were regarding talking public- ly, and I said that I planned to do so when I was ready; that I had discussed it with my wife and she said that I should do what I felt I must and not to worry about the family. I ADVISED JACK that my children were now grown and could understand what I had to do, when She disclosures came out. He responded by saying Shut "You know that if the administration gets its back to the wall, it will have to take steps to defend itself." I took that as a personal threat and I told him in response that I had had a good life, that my will was made out and that I had thought through the risks and would take them when I was ready. He said that if I had to go off to jail that the administration would help with the bail premiums. I advised him that it was not a bail premium, but :5170.11151 straight cash and that that was a problem would have to worry about, through family and friends. On the night before sentencing, Jack called me and said that the administration would provide Ike 1100,000 in cash if I could tell him how to get it funded through an intermediary. I said that if we ever needed it I would let him know. I never con- tacted him thereafter; neither have I heard from him. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For 11 re1/W 860?49F1065yRigs JULIE EISENHOWER Julie Nixon Eisenhower says the Water- gate hearings "affect anyone close to my father who thinks he's done a great job as President. They overshadow his achieve- ments. I have faith that it will all work Out . . . and he can move on to other things." She said she would like to reserve judg- ment on the hearings, which she has been watching. "I'm just completely mystified," she said. "These are good men. I'm just waiting until everything comes to light.... It's a very difficult time . . . a lot of men are good friends and dedicated Americans who have been called into question." MRS. EISENHOWER also said: ? Her father went through a difficult time reorganizing his staff recently, when he was also trying to make decisions about Leonid BrezImey's visit and disarmament. ? Her father "feels confident." People for- get he's 60 because he looks young, and are surprised sometimes when he appears tired. "I've been kidding him about a few gray hairs lately ? but I think they make him look distinguished." ? When she feels criticism is unfair, "it really gets me down," but I talk to my hus- band . "I don't worry my father." ? Not all the coverage of the Watergate has been "completely balanced." There has been much "hearsay and second sources." She cited the resignation of Young Republi- can Ken Rietz as having nothing to do with ( Clare Crawford the Watergate affair. We most "be careful not to try these people in the newspapers." SHE SAID her father would not resign. "He really loves his country . . . he's a dedicated man. The country needs his pro- grams. When the going gets rough, I don't think he'd ever bug out, to to speak." Mrs. Eisenhower made her remarks on Dimension Washington, which will be seen on WRC-NBC TV tomorrow at 1130 a.m. Mrs. Eisenhower also discussed the com- ing dinner for prisoners of war at the White House Thursday. She said the honor guard will use the homemade American flag from the Hanoi Hilton, the name the men gave to their prison camp. The event will be similar to state dinners, except the "Hanoi Hilton" chaplain will give a blessing arid the POWs will sing the song they sang each morning in prison. Much of the dinner has been donated ? from wine to flowers ? and people have written in asking to serve as waiters or help with the dinner. Mrs. Eisenhower said she didn't feel the Watergate would overshadow the POW dinner, which was planned in February. "FOR ONE NIGHT, the whole country will focus on these men and ... the courage it took to survive." The President, she said, has asked Bob Rope. Sammy Davis Jr., John Wayne and other entertainers for the dinner to come to Washington a day early to entertain wounded veterans at Walter Reed and Bethesda. Mrs. Eisenhower said her husband's sports writing job is only part-time and that he is doing free lance articles, includ- ing one for a magazine on the Middle East. She said his first column was about whether baseball was for the young or the old and questioned the use of such things as pantyhose nights at the ball park. He will write general sports columns, rather than just cover the Philadelphia team. She said he has applied to several law schools here for the September semester. "I think he's interested in politics, and I wouldn't rule that out for the future." MRS. EISENHOWER said she was en- joying traveling and representing her par- ents and probably would not return to teaching until after her father leaves the White House. She endorsed politics as a career. "If you're a firm believer in what you are doing and you really think you can make a contribution and a difference . .. then you can stand the other side effects." Ple ginning *Id ass TheTaNewsPOrtt011.0 A-12 WASHINGTON, D.C., SATURDAY, MAY 19, 1973 EGG-SHAPED 'ROC' Corcoran Gift By RUTH DEAN viv-vsisss91.1"99t An egg-shaped laminat- ed pine sculpture entitled "Roc," by sculptress Jen- nie Lea Knight, won out in the competition with the works of two other sculp- tors last night as the Friends of the Corcoran's 1973 gift to the Corcoran Gallery of Art. The ISO-member group, founded 11 years ago to augment the gallery's con- temporary art collection, cast the deciding vote fol- lowing their annual dinner in the Gallery's Mantel Room. But there were under- currents of dissension, voiced at the pre-dinner reception and following the dinner vote, over the choicest artists by the Acquisitions Committee and gallery director Roy Slade's final selections of one individual work each for the finalists. IN ADDITION to Miss Knight, the oilier finalists were Robert Stackhouse and Ed Love. All are local artists. Several guests liked Stackhouse's 12-foot long redwood sculpture that looked like a Viking boat or Hawaiian outrigger. It also served as a handy bar for drinks until watchful gallery officials asked their removal. The third sculpture, "Helmet" by black artist Ed Love, demonstrated the artist's ingenuity at translating auto parts into a primitive African mask. "It's all politics," said one disgruntled woman who wished to be name- less. "I didn't vote. I felt like I was back in the last election ? nobody to vote for." A more outspoken Friend, black artist Har- old Smith, called the gal- lery selection "a pile of garbage ? I wish they'd given ma choice." Even before it was voted the winning selection, "Roc" was the favorite of three discerning Friends. ISABEL A. BURGESS, member of the National Transportation Safety Board, said she thought the Knight sculpture's "tactile quality is great." And Sam and Helen Greenbaum, both collec- tors of contemporary art themselves, praised its subtlety and grace. "We're going to Rome and Florence next week to look at the contemporary art there; we love it," he said. At the dinner, Dr. Thom- as A. Mathews, president of the Friends, announced this year's gift would be a memorial to GaRerypatron Miss Edith Cook, a Labor Department attorney who died earlier this year. In his talk, Mathews also indicated there'd been NOMe dissent among the Friends. "Questions have been raised," he said, "why a sculpture? And why haven't the Friends pur- chased a major work of art this year?" Defending the Acquisi- tions Committee's choice, he said "I think any work we buy for the Corcoran is a significant work of art. "The reason why we're not spending a lot of onto. Margaret's First In Line Margaret Truman Daniel bought the first sheet of Truman 8-cent stamps issued this month to commemorate the 89th birthday of her father, former President Harry Tru- man. Edgar Hinde, postmaster in Independence, Mo., hands theme to Mrs. Daniel, wife of newspaperman Clifton Daniel. cy this year (average price of the sculpture selections was in the $1,00D range) is scone treasury can build itself up, to that if we are in a position to be offered a major work of art, we can buy it. We also Radio TV Notes tori Trott the 25-veer. uld Whemon housewife and muther of two who won WRC-Radio's "fan- tasy" contest jackpot prize of $25,000?she mute that she'd give $20,000 to the muscular dystrophy campaign- ta Ikedvia long distance Thursday with comedian Jerry Lewis. She's been united to ap-' pear on the next Labor Day telethon by Lewis. 'the NBC station has worked out the tax angle in regard to the contest: Mrs. Trott will get a check for SS.000 only. Jack Rowzie WCTN-AM lot 9901, the new religious- y oriented station, now hopes to be on the air on Monday. beginning at 6 a.m. Technical difficulties led to postponement silts prenuere. Montgomery County res- idents will get a chance to look at their school system in a series of six programs WETA-26 beginning at 7 p.m. Monday. The opening show will feature the de- partments of information, research. human rola- tions, association relations and the ombudsman. The series is currently being aired at 3,30 p.m. on Tues- days, and the prime-time rerun should give the pro- grams wider circulation. ?BERNIE HARRISON "Roc" by Jennie Lea Knight want to increase member- ship " EARLIER at the recep- tion, Slade expressed hope that the Gallery's board of trustees will find a new director "before summer, So decisions can get under way for the fall collec- tions." He said the search committee, headed by David Uoyd Kreeger, has been meeting twice a week interviewing "people from the Midwest and West." If he is the feat choice. Slade said he "would be willing to carryon and has so indicated." After four gallery directsrs in five years, he salt what the Corcoran neecs now "is continuity and stability." PRE-AUCTION EXHIBIT Two portraits by Joshua Johnston, including this one of Mrs. Barbara Baker Murphy (above), are on view through Monday in o pre-auction exhibition of art and decorative objects at Adam A. Weschler & Son, 905-9 E Sr. NW. Johnston, who painted in Baltimore early in the 1800s, is one of two 19th-century black artists in the ex- hibit. The other is Robert S. Duncanson, a landscape painter frorn Cincinnati. Other 19th-century American art- ists in the show are William Merrit Chase, Eastman John- son and William Rimmer. The four-clay estate auction be- gins Thursday. Approved For Release 2001109/04: CIA-RDP84-00499R000200010002-2 Approved For %lease 2001/09/04: CIA-RDP8,4-004991Z0200010002-2 JOHN H. KAUFFMANN, Prosidont -^ ? ?.,C5 and WA ''171't C11 i NLWZIOLD NOYES, fditat ,t A-16 * WEDNESDAY, MAY 23, 1973 ????????.11...?.????????????,..nvorryl?Mr.O......... ',WARY RficeRiOR7 By MARY MeGRORY Star-News Staff Writer In an anonymous letter sent to his only pal in the White House in December, James McCord wrote pro- phetically, "Every tree in the forest will fall." When McCord, the amia- ble old spook, left the stand of the Ervin commit- tee, he left a ravaged land- scape behind him. So grip- ping, outlandish and un- shakeable had been his tales of life in the Nixon campaign committee that the President at the end of the day popped out with a statement warning all in- vestigators to have a care for "national security." In his accusations about the President's sinister grand design to turn the ' CIA into a cloak for the Watergate operation, McCord had been corrobo- rated by no less a person- age than the agency's deputy director, Lt. Gen, Vernon A. Walters. And when McCord final- ly wound down, his buddy ? a New York cop named John J. Caulfield, brought into the White House to "provide private investi- gative .support" for God knows what other schemes ? advanced to the witness table to corroborate Mc- Cord's charges of political pressure from the White House to accept executive' clemency in all details save for the mention of the President's name. McCORD dropped his big borate last weela but ?-he .haa a TeW gana gre- nades in his final hour. He ,mentioned casually, when discussing the deep-laid plot for the lay-off of Wa- tergate on the CIA that ? James Schlesinger, the short-livcd director, now Defense secretary-desig- nate, "would go along." Nobody took him up on it. By now everyone is wary. Pull off a splinter on Watergate and a wall falls in. " Fred Thompson, the husky, phlegmatic rninori- ? ty counsel asked about the only question that anyone dared put to McCord after the spate of specifics had flooded a million living rooms across the nation. Why hadn't he sung sooner? ObvieesIy,b-t-F-..nnjare lend not bothered him. He made a formal act of con- _ ition, bet 19 years_in the - wsl,Fcor,R,Mainch 2001/09/04 : CIA-ROP84;00 conscYmee fficicntly to -don the blue surgical ! nrwel alemsnava.-rreato,,:r had the blessing of the then attorney general. AND SURELY although a pleasant man in other respects, he was at one with his leaders about the perilous state of the rep- bulic, menaced as it was by enemies from within. He gave the usual litany of bombings and threats, glided over the the chilling information that the Mc- Govern people had a "a pipeline" in CREEP, and as the clincher, cited the report that the Vietnam Veterans Against the War had an office in the Demo- cratic National Commit- tee. The VVAW, a touching band numbering a thou- sand at full strength, staged a pathetic demon- stration on the Mall in 1970 and gave the Republican National Convention in Miami its only honest moment when they marched in total silence to the Fountaimbeau. It was actually after the break-in that McCord learned of their firebase at the Watergate, which makes the break-in .history's first pre-emptive or perhaps retroactive protective reaction raid. What then, had impelled him finally to raise his voice and blast the forests of Richard Nixon? Well two things, it seems. One was that it was not done in ea) eav (e. ? the style of the CIA, the agency he loves. HE TOLD his friend, Jrck Caulfield, that in the CIA the rule, if caught, was for everyone to go together. While he was meeting Caulfield on the second overlook of George Washington Parkway Job Stuart Magruder who he says knew all about it, was feasting with his family and acting as master of the inaugural revels. He left the impression that he might have swal- lowed his sentence as he would have swallowed a death pill on a foreign mission, had the conspira- cy taken the group rate to the slammer. He waited until Judge John H. Sirica, after "a sham trial," had urged them all to come forward and tell all they knew. The Senate committee had provided the only forum where McCord could tell all his secrets. On the only occasion his light voice rose and his tired face turned dark with. emotion, McCord said, "I am fully con- vinced this was the right decision." CAUL:Fa-LLD, a dis- traught, pop-eyed, bumpy- nosed upwardly mobile Brnx native, came on aft- erwatds and, said that ile? and 441/100 percent of what McCord had spilled was true. Caulfield was anoth- er interesting case. A man eaten alive by ambition, he was ever on the watch for advancement in adniin- fthifit Cirldres and his ego wan wounded by John Mitchell who treated him as "only a bodyguards." Caulfield sl.fethtly laun- dered McCord's version of what he had told him dur- ing one of their renezvous: McCord ? said Caulfield arned him, "You know if the administration gets its back to the wall it will have to take steps to de- fend itself." Caulfield scrubbed it up a bit to read: "Jim, I have 'i worked with these people and I know them to be as tough-minded as you and ' itself," Caulfield scrubbed it up,e. , a bit to read: mini, I have; ! worked with these people and I know them to be as ? tough-minded as you and ; They weren't saints, ei- ther of them, but they are 0,4116.2,tgc?Lirtrci VuMAT6r, of I ? . people like McCord zinc' !Caulfield, 'oecauSe that is ? hse 440 A.T ? Enough new information has come ? out of the Watergate-Pentagon Papers investigation so that accounts can be better squared on the involvement of one key department, the Central Intel- ligence Agency. _ ? The CIA looked bad in the wake of disclosures that at White House re- quest it had provided assistance to the burglars of the office of Daniel Ellsberg's psychiatrist, and that it cooperated in compiling a psychologi- cal profile of Ellsberg. We said at the time that this involvement compro- mised and discredited the CIA. Since then, there has come some rather remarkable testimony from General Robert E. Cushman, former deputy director of the agency, General ? Vernon Walters, currently deputy director, and Richard M. Helms, whn was director of CIA in the period cov- ering both the Ellsberg and the Water- , gate episodes. Although CIA does not emerge blame-free, the new disclo- sures do afford a better perspective, 4.; and do place the agency's role in a more favorable light. To recapitulate: General Cushman used bad judgment in helping burglars 7' E. Howard Hunt and Gordon Liddy, ? though it is fairly clear he did not know, their mission, and though CIA assistance to them was halted even ? before the burglary took place. Helms ? used similar bad judgment in ac- quiescing on the Ellsberg profile. So Approved For Rehoese 2001/09/04: CIA-RDP84-00499R000200010002-2 s ffehrnin and Thetteiews CROSBY N. BOYD, Chairman of the Board JOHN H. KAUFFMANN, Presider', NEWBOLD.NOYES, Editor A-14 ** TUESDAY, MAY 22, 1973 The CIA in a Better Light much for the Ellsberg-Pentagon Pa- pers period in 1971. In the 1972 period following the ar- rest of the Watergate burglars, high. ' White House officials evidently at- tempted on several occasions to un- load major responsibility on CIA for what happened, and to get the agency to help scuttle the FBI's investigation. Helms and General Walters deserve great credit for refusing to go along with the White House suggestions, which Senator McClellan described as "beyond impropriety." Should Helms and Walters have gone to the President, or Congress, with that informatiGn? Perhaps so. In retrospect, it is understandable that they did not. Lyman Kirkpatrick, a former CIA official, wrote recently in the New York Times: "In fairness to CIA and other de- partments involved, the role of the Wnite House staff should not be under- estimated. It is not the custom of the bureaucracy to question a call from the executive offices. It is assumed that the President's people know what they are doing. While they may not inform the President of all details, it is usually believed they are operating under approved policy guidelines." The point is worth remembering. It is one thing to have been marginally compromised. It is another to have used the power and authority of the White House to plot the compromising. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 ThevejNews Approved FAitiompjp01/09/04 : CIA:RDP84-00499%00200010002-2 NN, President I NEWBOLD NOYES, Editor A-la *. WILLIAM SAFIRE THURSDAY, MAY 24, 1973 rnis ion of Error, Not G?ft In one of the most re- markable statements ever issued by the White House, the President made these confessions: 1. A bureaucratic civil war took place in the intel- ligence community in 1970, pitting J. Edgar Hoover's FBI against our foreign intelligence agencies on the issue of whether to re- sume authority, ended in 1966, permitting U.S. agents to burglarize for national security reasons. Hoover, who did not want his men involved in this kind of operation, won. Cooperation between agen- cies bogged down and our intelligence "deteriorat- ed." 2. The President stated "I approved" the creation of the unit called "the plumbers" to investigate national security leaks aft- er the publication of the Pentagon papers, and "I told Mr. Krogh that as a matter of first priority, this unit should find out all it could about Mr. Ellsberg's associates and his mo- tives." The picture this calls to mind of a U.S. pres- ident acting as angry spy- master is disheartening. 3. The President assert- ed he told Asst. Atty. Gen. Petersen to "confine his investigation to Watergate and stay out of national security matters." That means the President ob- structed the investigation to the extent he felt neces- sary to protect national security. If his accusers want to say that makes him part of a cover-up, so be it, Which also applies to the next point: 4. The President said "I instructed Mr. Haldeman and Mr. Ehrlichman to ensure that the investiga- tion of the break-in not ose either an unrelated 5. "It is clear that unethi- cal, as well as illegal, ac- tivities took place in the course of that 1972 cam- paign. None of these took place with my specific approval or knowledge." The President is a lawyer, and is advised by men who are careful about every word in a written state- ment; the addition of the word "specific" before "approval or knowledge" is probably the greatest single confession of error in the document. The President's confes- sions ? and these are only a handful of those made in the statement ? are con- fessions of error, not of guilt. He says he mis- judged; he did not intend; he "should have been more vigilant." But in terms of the commission of a crime, he admits nothing. Since the statement seems to raise more ques- tions than it answers, why did the President issue it? It enables the men he mentions ? Haldeman, Ehrlichman, Krogh, depu- ty CIA chief Walters?to testify truthfully without seeming disloyal to the President. It puts information out in a big bucket ? not drop by drop, as in the cartoon of water torture inflicted on the Republican party in the post-Harding era. It reminds the fair-mind- ed of the context of Ale times; now that Vietnam is over, we tend to forget the fury of the opposition to the war and the real domestic threats some of the protest.. ers-posed. It tries to separate dirty politics, which is uncon- scionable, from the dirty, but somewhat more con- scionable business of Approve 4Yvgft Roziefute (2116$109iO4 s %IN* or the activities of the laws on White House investigations security. "nit " L. lo eh 9p ? ? Mb I 0 news conference in which the President can speak like a lawyer in court, making references to a detailed brief, and not like a defendant telling the sto- ry for the first time. Most important, the statement focuses atten- tion on the dilemma that drew the Nixon adminis- tration into the supersnoop business in the first place: At what point does the de- fense of our system corrupt our system? It is satisfying to say, "An obsession with securi- ty leads to political para- noia, and the overreaction to dissent turns leaders into would-be dictators." Or, in regard to association with people you have de- graded by requiring them to do the dirty work, to apply the adage, "When you lie down with dogs, you get up with fleas." There is much truth in that, but how far are we willing to take the argument? How do we pro- tect our secrets? Is it such a good idea to try to uncov- er another country's secrets? Do we need a cov- ert operation in CIA at all anymore? The President, after two months, has decided upon a strategy to deal with Watergate: To admit error rather than guilt, and to change the battleground from "was the President involved in these sleazy political shenanigans?" to a loftier "what liberties are we prepared to give up for national security?" For a man with his back to the wall, it is a daring strategy, but it is risky, too. ? for one of the fruits of the detente Nixon brought about is a long-awaited lessening of the lust for 14902130erf06024 another is a growing reluctance to sub- vert the law in the name of national security. It lays the basis for a "CeiVA4/ 114 fl,V eit?7 XykoNyk ond Approved FoeleasTli/ara dleg049tR000200010002-2 CROSBY N. BOYD, Chairman of the Board JOHN H. KAUFMANN, President NEWBOLD NOYES; Editor A-14 ** TUESDAY, MAY 22, 1973 CROSBY S. NOYES What Ervin and Co. One of the sadder as- ? but in government as a pects of the Watergate whole. affair is the reaction of those very sincere people who insist on minimizing its significance. As every newspaper in the country is well aware by this time, one of the major themes of these pro- testers is that the newspa- pers themselves are the real culprits in blowing up the story out of all propor- tion to its real importance. Another is that what hap- pened is par for the course in American politics. As one reader wrote The Star- News: "The Watergate case, as an instance of political ' espionage and misuse of campaign funds, is surely not the heinous crime the media make of it. Ameri- can politics has been cor- rupt, venal and self-cen- tered as far back as mem- ory permits." ? Maybe so. Yet this wide- ly held attitude reflects a cynicism that is, in fact, something new in Atneri- ? can political life. And it is also, perhaps, a measure of how far the Watergate affair itself has under- mined public confidence -- not only in the perform- ance of this administration It is a reaction to be 7 expected in foreign coun- tries. In China and the Soviet Union, where such goings on are indeed rou- tine stuff, virtually no mention of Watergate has appeared in the press. Western Europeans, who know something about po- litical scandals, are more impressed by the intensity of American reaction than by the affair itself. The South Vietnamese are re- ported to be secretly de- lighted to find another government apparently as corrupt as their own. ? Still, it is not excessively naive to say that Water- gate is very far from being par for the course in American politics. Charges of criminal con- spiracy reaching into the heart of the White House and the top levels of the federal administration are anything but routine. The idea that politics ? and by extension politicians and the government itself ? are inherently corrupt and venal, if not downright crooked, amounts to a considerable injustice to a great =any perfectly hon- ? ""nr:011101,1,',1,117, Can Do for America est and dedicated men and women. This, it seems to me, is a growing misconception that can cause real injury if left unchecked. And it is perhaps in this area that the hearings presided over by Sen. Sam Ervin, D-. N.C., can make their greatest contribution in neutralizing the poisons generated by the Water- gate case. There are problems, of course, in holding hear-, ings in public while grand juries still are hearing evidence and handing down indictments on spe- cific criminal charges connected with the case. It is quite true that the prob- lem of granting immunity from prosecution to some witnesses before the com- mittee is a delicate one which could complicate the work of the grand ju- ries. It is possible that the evidence presented to the Senate committee may to some degree prejudice the judicial machinery. It also is possible that the Senate hearings may result ? at least for the short run ? in a further decline of public confi- dence in the administra- tion. The announced pur- pose of the committee is to educate the public and to determine what new laws may be needed to correct the abuses of the past, and that may be a painful process. Yet no less important, quite certainly, than the process of determining criminal responsibility and punishing guilty indi- viduals. By itself, the judi- cial process is unlikely to provide the public with a clear perception of where we have been in this affair and where we must go from here. As the commit- tee vice chairman, Sen. Howard Baker, R-Tenn., put it: "Although juries will eventually determine the guilt or innocence of per- sons who have been and may be indicted for specif- ic violations of the law, it is the American people who must be the final judge of Watergate." And, if the committee does its job, that judg- ment certainly will not be that the government as a whole is corrupted and unworthy of the confi- dence of the American people. Quite on the con- trary, the real lesson that will be learned is that the Watergate affair was a grotesque aberration engi- neered by people with pre- cious little knowledge of the American political sys- tem and the permissible limits of political conduct. The essential job of the committee, in short, is to restore the confidence of the people in the system of government in this coun- try and the integrity of the vast majority of those who serve the system. And that is a far more important objective than sending a pproved For Release 2001/09/04: CIA-RDP84*-00499R0002000100d21-v25 coundrels off to jail. Approved F n4 and ThettNews CROSBY N. BOYD, Chairman of the Board JOHN H. KAUFFMANN, President NEWBOLD NOYES, Editor A-14 ** _ TUESDAY, MAY 22, 1973 ' ,RUSSELL BAKER Suggestions for Improvement It is not too early in the Watergate business to start drawing tessons and thinking about reform. Following are a few of the more obvious things that might be done to improve the quality of government. 1. Abolish the FBI and CIA. Both have become intensely bureaucratized agencies with too many activities ? electronic eavesdropping, keeping secret dossiers on citizens and members of govern- ment, collecting intelli- gence for domestic politi- ? cal manipulation -- char-. acteristic of secret-police functions in a totalitarian state. ? Entrenched police bu- reaucracies are not only unattractive in an open society but also danger- ? ous. With their blackmail powers over political lead- ers and their ability to. harass their enemies, they become small states with- in the state. The best way to dispose of their threat is to dis- Solve such bureaucracies periodically? every 10 years perhaps ? and empower Congress to cre- ate such new national po- lice bureaus as may from time to time seem neces- sary. This might even improve police and intelligence performance, since new government agencies tend to be dynamic and effec- tive while aged ones be- come absorbed in internal politics and wasteful, pos- sibly dangerous plots for AppropittuilNrare1681709 AS6' Needless to say, Con-* gress should be cautious about permitting person- nel carryover when aboli- shig one set of police agen- cies and establishing its successor. Amateurism at the police station is al- ways preferable to the ef- ficiency of a Gestapo or KGB. 2. Get the President off Mt. Olympus. The impor- tant thing is to restore his contact with American life. At present he is treat- ed like a live mummy, wrapped tightly in his own highly peculiar work problems and sealed off from the living world in the famous 0 Jai Tomb. Periodically, Presidents ought to be compelled to drive their cars in a rush hour, catch a taxi in the rain, and wait their turn for a drugstore-counter ' lunch. Since this is proba- bly impossible ? because of our hundreds of thou- sands of armed maniacs ? we may have to be satis- fied with more modest in- roads upon his grandeur. His emperor's fleet of transport vehicles, for example, can mostly be disposed of. His assistants can surely make do with taxi or bus. He should be placed under some inexplicit compulsion to maintain modest contact with the public. Once a month, per- haps, he might be required to sit in front of TV camer- as and talk to us about what is going on. Regular news conferences might be discourse between man and group, encourage pos- turing and place corrupt- ing importance on show- business skills or lack of them in politicians. 3. Get the President out of show business. The present grotesque impor- tance accorded "Charis- ma" among presidential politicians reflects the disagreeable tendency in American life to look upon the President as a super- 'star, complete with fan clubs to deluge him in postcards and letters whenever he appears on camera to call the faithful to composition. 4. Cut presidential cam- paigns to eight weeks. Out- law political advertising. Provide limited amounts of free TV, radio, newspa- per and billboard space for major candidates. Make the Internal Reve- nue Service start enforc- ing the gift-tax law on big contributions to politi- cians. And why not, as long as we are discussing the impossible, change the President's term from four years to three? Four years is too long to wait for a referendum on presiden- tial performance. Considering the volatili- ty of the times, three years is probably too generous. The faster turnover in Presidents which would result from the three-year term would probably tend to make them mote com- monplace and, therefore, less regal. It would compel them to keep in mind that gg A,tqle?,tsoD v? a President is, after all, OeOrittils-timmtwoMON tilofiaeit. _ 70s, Yesterday's high, 73 at 3:30 p.m. Today's tow, SO at 4:25 p.m. Details : Page EI-6. 1st Year. No. 142 "The cdpyrtet - LIM Evening Star New3PICer , 0 ViihrmS I-I IAN GTY) N (EA I L2-411. WASHINGTON, D.C., TUESDAY, MAY 22, 1973-56 PAGES ???? OA WO ..-?????? Phone 484_5000 CIRCULATION 4843000 CLASSIFIED 484-6000 10 Cents, EFUSED TO TURN ON CIA --Star-News Photographer Joseph Silverman Sen. Howard Baker, Sen. Sam Ervin (from left) and counsel Sam Dash confer at today's hearings. By MARTHA ANGLE and JAMES DOYIE Star-News Staff Writers Convicted conspirator James W. McCord Jr. today told a Senate Committee that defendants in the Watergate case were subjected to White House pressure to blame the operation on the - Central Intelligence Agency and he alone re- sisted the pressure. McCord said that his co-defendants and his own attorneys tried last December to? get him to go along with the story that the CIA had been behind the Watergate break-in and bug- ging- "I refused to do so," he said, reading from a detailed memorandum he submitted to the Senate Watergate Committee on May 7. AT ONE POINT, McCord said, he told Ger- ald Alch, one of his attorneys, that "even if it meant my freedom, I would not turn on the organization that had employed me for 19 years and wrongly deal such a damaging blow that it would take years for it to recover. .." By late December, McCord testified, "I was completely convinced that the White House was behind the . . . ploy. . and would do what- ever was politically expedient at any one par- ticular point in time to accomplish its ends." During Christmas week, he said, he sent an unsigned letter to John J. Caulfield, a former White House aide who had first recruited Mc- Cord to handle security for the Republican National Committee and who then was em- ployed at the Treasury Department. ?St ar-Newa Photographer Joseph Ser- James W. McCord reads his opening state- ment at today's Watergate hearing. isy late uccember, mccora teStilied, "'I WA4 9ompletely convinced that the White House was behind the. .mulaved iz..iggscioallOAQ, ever was politicaIirexpedient allrldny one par-. ticular point in time to accomplish its ends." During Christmas week, he said, he sent an unsigned letter to John J. Caulfield, a former White House aide who had first recruited Mc- \ Cord to handle security for the Republican National Committee and who then was em- ployed at the Treasury Department. THE LETTER, HE said, was designed to head off the alleged White House attempt to blame Watergate on the CIA. In substance, it said: "Dear Jack: I am sorry to have to write you this letter. If (CIA Director Richard) Helms goes and the Watergate operation is laid at CIA's feet where it does not belong, every tree in the forest will fall. It will be a scorched de- sert. "The whole matter is at the precipice right now. Pass the message that if they want it to blow, they are on exactly the right course. I'm sorry that you will get hurt in the fallout." THE LETTER, McCord said, contained no request that the White House contact him. If he had wanted to talk with Caulfield, McCord said, he could have telephoned him easily. McCord last Friday testified that Caulfield met with him three times in January of this year to transmit White House offers of execu- tive clemency, monetary payments and a fu- ture job if he would remain silent about the Watergate case. McCord also said he was "convinced" that Helms was fired as CIA chief last year so that the White House could replace him with its own man and blame Watergate on the CIA. McCord said he considered it part of a con- tinuing plot in the White House to effect "political control" over the agency. Reading from a previously prepared memo, McCord said he had been told that James R. Schlesinger, who replaced Helms as CIA chief, "would go along" with the White House plot to blame Watergate on the CIA. Schlesinger has since been nominated to be Secretary of De- fense. See HEARINGS, Page A-4 MAN WHO CALLED McCORD iuiliillaffPur A former New York policeman was hired by presidential adviser John D. Ehrlichman in 1969 to conduct political syping operations under Ehrlichman's direction and was paid secretly by President Nixon's personal attorney, according to informed sources. The sources said Anthony T. Ulaseivicz carried out a series of assignments from Ehrlichman that ranged from a probe of Sen. Edward M. Kennedy's Chappaquiddick accident to an inves- tigation of a teacher reportedly harassing Julie Nixon Eisenhower in Florida. Ulasewicz has acknowledged he was the man with a New York accent who made a telephone call to James W. McCord Jr., offering him execu- tive clemency if he would plead guilty and re- main silent at his Watergate burglary trial. Mc- Cord, who described the clemency offer on Fri- day, was to resume his Senate testimony today. Acting under orders from Ehrlichman, it was learned, Ulasewicz at various times investigated alleged ties between Sen. Edmund S. Muskie, D- Maine, and corporate polluters, checked on re- ported harassment of the President's daughter, probed the finances of Sen. Hubert Humphrey's campaign, and investigated a Georgetown inci- dent of unspecified nature involving House ?.Star-Nitws Photographer Joseph Silverman James W. McCord reads his opening state- ment at today's Watergate hearing. Vagerg te At MN Political spying operations for the White House were carried out by a former New York City policeman under John D. Ehrliclunan's direction starting in 1969, sources said. Page A-1. Senate action on Elliot L. Richardson's nomi- nation as attorney general may come by to- night, following what is expected to be favora- ble action by the Judiciary Committee today. Page A-7; Richardson?owes his confirmation to the committee's confidence in the independence of his old Harvard Law School professor, Archi- bald Cox, as special Watergate prosecutor, Mary McGrory writes. Page A-9. James W. McCord today told a Senate com- mittee that he alone of the Watergate defend- ants resisted White House pressure to blame the burglary on the Central Intelligence Agen- cy. Page A-1. An effort to persuade CIA officials to inter- vene and call off FBI probing of aspects of Watergate case came less than a week after the break-in and was represented as "the President's wish," a CIA memo made public yesterday disclosed. Page A-6. A White House plan for widespread domestic espionage following the 1970 Cambodian inva- sion is under investigation by congressional committees. Page A-2. ,71 Speaker Carl AtIVTIcoved For REgult21924/119.404 : CIA-RDP84-004?9ROMEMapreasinternationd AMMO ' committee, he was anxious *proved For Reit:AWN:01 tErimctriMiS00499R000201161.000242rmation re- ?10," Washington, D. C, ustsdCry, y , 7 garding possible violence against the committee and the Republican party. In February 1972, pipe bombs exploded at a police station in Manchester, . N.H. One of those arrested was carrying letters say- ing, "We have just bombed the offices of the Committee to Re-elect the President in New Hamp- shire." McCord said a bomb attack on committee offices in Manchester was obviously planned after the police station effort. A few days later, he said another bomb exploded at Republican county head- quarters in Oakland, Calif. There were numerous threats, McCord said, against Mitchell and his wife, Martha. McCord said he was anxious to learn what groups were fomenting violence, who was funding them or encouraging them and what they were plan- ning next. He said he had "no indi- cation whatever" that Democratic party chair- man Lawrence O'Brien or Sen. George McGovern had any knowledge of such groups and their plans, but thought it possible that staff members "might be. working behind quietly backs to 1' encourage" certain radi- HEARINGS McCord Reports Cover-up 'Ploy' Continued From Page A-i McCord's former attor- ney, Alch, flew to Wash- ington from Boston today to demand an opportunity to testify before the Senate committee tomorrow on McCord's accusations against him. Representa- tives of his law firm said Alch has a 5 p.m. appoint- ment with committee counsel to demand rebut- tal time for the chatges made by McCord last Fri- day against his former lawyer. Alch associates said the Boston attorney came here because he has documents to back up his story and because he "thinks the committee might not put him on the stand." Under close questioning by the committee mem- I bers, McCord was unable to say the offers for execu- tive clemency, money and a job after prison came directly from any official at the Committee to Re- Elect the President or the White House. And, he said, the suggestion that he use as a defense that the Wa- tergate break-in was a CIA operation came front his lawyer, Gerald Ala, and not from any govern- ment or campaign official. McCord mentioned con- versations with fellow ? conspirator E. Howard ! Hunt and his late wife, with another convicted conspirator, Bernard Bar- ker, and with Caulfield. Sen. Herman Talmadge, D-Ga., said at one point to McCord, "You have not connected it with the White House or the Com- mittee to Re-Elect the President" directly. Mc- Cord did not counter this statement, although in tes- timony Friday he said Caulfield told him Presi- dent Nixon was aware of their meetings. ON ANOTHER subject, McCord told the Senate committee that in January or February 1972 one of his co-conspirators, G. Gor- don Liddy, told him he was going to Las Vegas to "case" the office of Hank Greenspun, editor of the Las Vegas Sun. Liddy told him Attorney General John N. Mitchell had indicated that Green- spun had "blackmail" in- formation linking a Demo- cratic presidential candi- date with racketeering elements. McCord said he person- ally tends to "disbelieve" any such Information ever existed. ? Liddy, he said, made ? two trips to Las Vegas ? In February and again in April 1972 ? to plan "for an entry operation into Greenspun's safe." McCord, in response to questions from committee members said that to the best of his knowledge there never was an actual break-in at Greenspun's office. After the April trip, he said, Liddy told him of plans for the "entry team" to go from Greenspun's office to the Las Vegas airport "where a Howard Hughes plane would be standing by to fly the team to a Central American country." At one point in his testi- mony, McCord said that among the reasons he had to believe that the Repub- lican campaign was en- dangered was thhat he had received information that Vietnam Veterans Against the War had an office within the DNC at the Watergate. But in answer to a ques- tion from Sen. Lowell Weicker, Jr., R-Conn., McCord said he did not get that information before June 17, the day of the break-in. He could not recall the source. It was at about this time, McCord said, that another co-defendant, E. Howard Hunt "gold me he was in, touch with a Hughes corn- I pany that might need my ! services after the elec- tion." Both Hunt and Liddy told him they had handled a Howard Hughes contri- bution to the Nixon re- election campaign, Mc- Cord testified. i cal groups. "I felt the Watergate operation might produce some leads answering some of these questions," McCord told the commit- tee. "In hindsight, I do not believe that the operation should have been sanc- tioned or executed. How- ever, you asked me about my motivations at the time." McCord testified today he pressed his old friend Caulfield to ascertain whether ? as McCord be- lieved -- his telephone calls were being intercept- ed by the government. McCORD today also elaborated on the factors which persuaded him to participate in the Water- gate bugging venture in the first place. First and foremost, he repeated, was the "sanction" given the oper- ation by Mitchell and John W. Dean III, counsel to the President?sanction re- layed by Liddy. In addition, McCord said, as security director for Nixon's re-election ;i HE CONCEDED that he had deliberately made two telephone calls to foreign embassies in Washington in an attempt to be over- heard on government wir- etaps. But he denied that this was a ploy to under- mine the government's case against him. McCord said he made the calls to test the government's honesty. He was convinced his own tel- ephone had been illegally wiretapped, he said, but believed the government would probably deny it if asked about it in court. He said he tried to be oVerheard on other taps on embassy telephones to see if the government would admit overhearing him I there. He said it didn't. News reports today identi- fied the embassies as ! those of Israel and Chile. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Egil Krogh Jr. (right) talks with his law- yer, Steven Shulman, as they leave U.S. ?Associated Press District Court here after Krogh met with Watergate prosecutors. i Continued From Page ii-1 i Sources said. he also Iconducted a background check on Rep. Mario Biag- gi, D-N.Y., candidate for mayor in New York, and looked into the possibility : that the brother of one , possible Democratic presi- dential contender had been involved in a homo- sexual incident in New i York. SO WIDE was the net cast by Ulasewicz, sources said, that at one juncture, he was assigned to investi- gate the activities of a "Donald Simmons" in the 1972 Wisconsin primary, only to discover that "Simmons" was actually Donald Segretti, alleged GOP saboteur indicted in Orlando, Fla., May 4 on charges of distributing a phony letter on Muskie stationery accusing Hum- phrey and Sen. Henry M. Jackson of sexual miscon- duct. From 1969 to 1971, the sources said, Ulasewicz was carried on the law of- fice payroll of Herbert W. Kalmbach, President Nixon's personal attorney. Beginning in September 1971, he received lump. sum cash payments from Kalmbach that in one in- stance totaled $30,000, it was reported. Ulasewicz has been identified in earlier news reports as the agent whom Kalmbach used in contact- ing one or more of the sev- en convicted Watergate conspirators in regard to payments of "hush" mon- ey in exchange for their silence about the involve- ment of high White House officials in the Watergate operation. worked out with Kalm- bach, sources said. McCord, who is expect- ed to conclude his Senate testimony today, told the panel Friday that former White House aide John J. Caulfield in January transmitted offers of mon- ey, executive clemency and a future job in ex- change for silence about the Watergate incident. During that same time, McCord testified, he had received telephone mes- sages from an unidentified caller arranging the meet- ings with Caulfield. Press reports have identified Ulasewicz as the anony- mous caller. It was Caulfield, sources said, who recommended Ulasewicz to Ehrlichman shortly after he himself was hired in March 1969, to supervise legitimate "discreet investigations" and maintain liaison with federal law enforcement, agencies. Caulfield and Ulasewicz were former colleagues on the New York police force. , Caulfield is expected to appear before the Senate committee later today or tomorrow. SOURCES said Caulfield and Ehrlichman first in- terviewed Ulasewicz at the American Airlines terminal at LaGuardia ' a Airport in New York in the spring of 1969, and Ula- sewicz began his "investigative" work in July of that year. Chappa- quiddick was his first as- signment, it was learned. Ulasewicz was told to use code names, avoid any mention of his White House connection and re- port verbally to Caulfield, sources said. In a related develop- ment, the Scripps-Howard News Service reported that Ulasewicz has led Senate investigators on a tour of locations in the Washington area where he hid money for eventual distribution to the original Watergate defendants. That "hush money," al- legedly given to the de- fendants in return for will- ingness not to implicate higher officials in the con- spiracy, was transmitted from Kalmbach to Ulasew- icz and then to the late Mrs. Dorothy Hunt, wife of one of the defendants. WASHINGTON'S Na- tional Airport was a major "drop point" for delivery of cash to Mrs. Hunt, and one of Ulasewicz's favorite locations, according to the story written by Scripps- Howard Staff writer Dan Thomasson. His account said large a sums of money were stashed in a locker at the airport for pickup by Mrs. Hunt, who would gain ac- cess to the locker by re- trieving a Icey Ulasewicz had taped in a hidden place in a telephone booth near the Eastern or Amer- ican Airlines ticket count- ers. Mrs. Hunt was killed in a Chicago plane carsh in December, and at the time of her death she has $10,000 in cash in her purse. The amount which she and others distributed to the defendants was more than $300,000, ac- cording to the Scripps- Howard story. The story also said some of the "hush money" was left in "some of the most public places imaginable," and usually was composed of $100 bills left in plain , manila envelopes. CITING the case of one middle-man who allegedly took $1,000 of the payoff money for "expenses," Thomasson's story said investigators believed some of the funds were "skimmed" 'by those who handled them. The Senate committee is expected to sun-Anon Ula- sewicz sometime after it has heard the testimony of McCord and Caulfield. ARRANGEANNWEfdrFOr Release 2001/09/04: CIA-RDP84-00499R000200010002-2 his expenses, including the maintenance of an apart- mr.nt iii Nous Vivrtr 1111,1.r. .Washingion, D. C., Tuesday, May 22 1973 CIA MEM0p0AtoliALDEMAN_RD,154L00490.13000200010002-2 Vs Red f By OSWALD JOHNSTON Star-News Staff Writer Six days after the We- ' tergatc break-in last June, federal prosecutor Earl J. ? Silbert revealed at a rou- tine bond hearing involv- ing the burglars that a bank draft of $89,000 link- ed to Bernard L. ear- , ker, one of the suspects, had been traced to a bank in Mexico City. That same day, June 23, 1972, according to recent testimony before three congressional committees, White House aides H. R. Haldeman and , John D. Ehrlichman tried to enlist CIA cooperation in block- ing an FBI investigation of an ill-defined Mexico City finance operation. According to a memo by CIA deputy director Lt. Gen. Vernon A. Walters , which was prepared a few ,,.days later but revealed , only yesterday, heading off the FBI probe was . deemed so urgent that flaldernann told CIA offi- ? cials that day "it is the President's wish" that Walters go to FBI acting director L. Patrick Gray III to call the FBI investi- gation off. In the annals of the complex Watergate affair, the details of the tortuous financial trial that led from a Houston mining company, through Mexico City, to Barker and then to GOP fundraiser Maurice Stans' safe did not surface for many weeks. TO WALTERS and to former CIA director Rich- ard M. Helms, who testi- fied yesterday in an open session of the Senate For- eign Relations committee, the connection was totally obscure last June. As Helms recalls it, he was summoned by tele- phone to be at the White. House at 1 p.m. June 23 to discuss an unidentified subject and to come with Walters, a former aide to President Nixon who bare- ly six weeks before had been sworn in as CIA dep- uty. Once in Ehrlichman's office, Helms recalled, Haldeman told the men there was a danger the Watergate incident might be capitalized upon by the "opposition." Apparently some danger to the nation- al security likewise was invoked, as Helms recalls it, because "Haldeman also mentioned the Bay of Pigs, in an incoherent statement I didn't under stand." In late November, a few weeks after Nixon's land- slide victory, Helms was summoned to Camp David and told he was resigning as CIA director, some six months before reaching retirement age, and being , reassigned as ambassador to Iran. Haldeman was , present at that meeting with the President, Helms recalled yesterday. Asked by several sena- tors whether his removal was related to his refusal to let the CIA be used by the White House in the Watergate case, Helms had one reply. "I honestly don't know." I STILL ANOTHER of Walters's "memorandums k of conversation" ? writ- ten last year but disclosed yesterday to the New York I Times by other congres- sional sources?quotes Gray as saying that the President, during a tele- phone conversation, had inquired about "the case," an apparent reference to the Watergate inquiry. This memorandum quotes Gray as telling the President that the Water- gate case could not be 11 covered up ,and that he thought that Nixon should get rid of those involved The memorandum, pre- pared by July 13, is said to be Walter's recollection of a conversation held just a day earlier with Gray The document quotes Star-News Photographer Joseph Silverman,. Richard Hehna testifies. Walters, in a confiden- tial memorandum of the same conversation, which Sen' Stuart Symington (D- Mo.) in part revealed, at yesterday's hearing, put it more bluntly. "It is the President's wish that you go to Mr. Gray ..." is the way he heard Haldeman's order. Halms yesterday insist- ed that he had no recollec- tion of the phrase "it is the President's wish." But he left no doubt that he re- garded an order from Haldeman as issuing from the top. "When the President's chief of staff speaks to you," he noted, "you assume he speaks with authority." Haldeman told the New York Times yesterday that the President was not in any way involved in the Watergate cover-up. Hein-is revealed yester- day that the CIA immedi- ately checked the only conceivable link betWeen the Mexican money trans- fer and its own operations in Mexico. This was Man- uel Ogarrio Daguerre, an attorney to whom had re- ceived a $100,000 transfer from Gulf Resources and Chemical Corp. of Houston as a bill payment April 3, 1972. OGARRIO, Helms told the committee, "had no relation to the agency," and by June 26 the CIA director and his deputy, were trying to tell White House aides they could not invoke CIA operations to block the FBI probe. Ogarrio, as the investi- gation eventually was to THEN HALDEMAN reveal, bought $89,000 in gave his order: "It was bank drafts from Banco decided at the White Internacional in Mexico House," Helms testified City April 4, 1972. yesterday, that Walters The next day the should go to Gray and tell drafts,plus $11,000 in cash, him that continued invAINProviezier-duliRialelabie +200114109 gation of the Mexican fi- to Nixon fund-raisers in nance might jeopardize Houston. The money was A Irtties ihorre flown immediately to Washington. The drafts were cashed through Barker's Miami bank ac- count before the money went back into a campaign safe used, in part, to fi- nance Watergate spying. Some of these connec- tions between Watergate and the GOP campaign might never have been made' had Haldeman's order of June 23, been car- ried out, and the Mexico City bank transaction. ? which Watergate prosecu- tor Silbert revealed that day, might never have been developed. The full details of the Mexican transaction are still under, investigation by a federal grand jury in Houston. Helms, looking back yesterday on that early stage of the Watergate scandal, stressed the seeming innocence of what Haldeman seemed to be asking him to do, even aft- er it had been revealed that the reason offered for blocking the FBI probe? CIA operations in Mexico -- was spurious. - Whether or not Halde- man spoke at "the ? President's wish." Helms made it plain, "assistance to the President hasn't been considered a crime until recently." HE EXPLAINED: It was only six days after Watergate when Halde- man spoke, the full import of Watergate was un- known, he could not under- stand what a Mexican bank transaction had to do with the incident. Later, as the scope of the case began to widen, Helms said, "My total preoccupation was to keep the CIA uninvolved in the whole matter -- and I suc- ceeded in so doing." 04: cipiheisittogv, Gray as saying that Presi- dent Nixon had called him a week earlier to congrat- ulate him on FBI action frustrating an airplane hijacking in San Francis- "Toward the end of the conversation," according to the Walters memoran- dum, "the President asked him (Gray) if he had talked to me (Walters) about the case. Gray re plied- that he had. The President then asked him what his recommendation was in this case The memorandum then continued: Gray had replied that the case could not be cov- ered up and it would lead quite high and he felt that the President should get rid of the people that were involved. Any attempt to involve the FBI or the CIA in this case could only, prove a mortal wound and would achieve nothing. "The President then , said, 'Then I should get rid ? of whoever is involved, no matter how hign up?' Gray replied that was his , recommendation. ' "The President then asked what I thought and? 9R00026 the same as his. The Presi- ! Gray said my views were it o. well and 91 GOOD START?Clear tonight, low in 50s. Sunny tomorrow, high in mid-70s. Yesterday's high, 66 at 4:30 p.m. Today's tow, 57 at 2:30 !a.m. Details: Page D-4. CN 0 (7, 121g Year. No. Mr mita and . "TA WASHINGTON ra I C,opyrigtg 'Ow Evening Star Newspaper Oa x WASHINGTON, D.C., MONDAY, MAY 21, 197-54 PAGES NIGHT FINAL CIRCULATION 484-3000 Phone 484-5000 CLASSIFIED 4846000 0 0 0 so Cer ? o CD CN By OSWALD JOHNSTON Star-Nears Staff Writer CIA Deputy Director Lt. Gen. Vernon A. Walters, in a memorandum prepared last June, said he was ordered by White House chief of staff H. R. Haldeman to interfere with an FBI investigation of the Watergate case and was told "it is the President's wish" that he carry out the order. The memo was written a fes . days after a June 23 White House meeting in which the or- der was relayed to Walters in the presence of then?CIA director Richard M. Helms and presidential domestic adviser John D. Ehrlich- man. The substance of the memo was revealed today in a hearing before the Senate Foreign Relations Committee. Helms, testifying to the 1 committee, said he had no recollection that the President's name was invoked on the June 23 /UGC, taxab. Pressed by committee members, Helms de- clined to say "categorically" that Nixon's name did not come up at the meeting. But he stressed he had no independent recollection that would back up what Walters wrote. DURING MORE than two hours of an open hearing, at the conclusion of which Helms Was roundly praised by committee members for refusing to yield to White House pressure, Helms stressed that he gave orders after Wa- tergate that the agency was under no circum- stances to be linked with the widening scandal. Much of the testimony merely confirmed ear- lier disclosures of the campaign by White House aides Haldeman, John D. Ehrlichman and John W. Dean III to use the CIA to hinder investigation of Watergate and too provide a' Cover for the five Watergate burglars. Helms made it plain, however, that his per- plexity was extreme in the face of evidence that top-ranking White House aides, invoking presidential authority, were seeking to involve the agency in illegal activities. See CIA, Page A-2 rid rode At Glance H. R Haldeman told CIA officials "it is the President's wish" that the agency tell the FBI to limit its Watergate investigation, acct3rding to testimony on Capitol Hill today. Page A-1. Investigators are tracing the movements of the Nixon re-election campaign's undercover operator, Donald H. Segretti, to Pittsburgh, San Diego, San Francisco, Milwaukee and Portland. Page A-1. Former Atty. Gen. John N. Mitchell and former Commerce Secretary Maurice Stans plead not guilty to perjury and conspiracy charges at their arraignment in New York., Page A-8. Nixon campaign advisers were reported to have given hush money to Watergate defend- ants as recently as five weeks ago. Page A-8. ?Star-News Photographer Joseph Silverman Former CIA Director Richard Helms pre- pares to testify before the Senate Foreign Relations Committee. Approved For4,Jease 2001/09/04: CIA-RDP84-00499U0200010002-2 CIA President's Wish," Haldeman u ot e d ? Continued From Page A-1 , Asked why he did not go , personally to Nixon with his misgivings, Helms replied: "My interest was to keep the agency out of 1 t__this case under all circum- I stances,- and I wanted to stay as head of the agency , to keep it out. "I though I would be more successful doing this, than someone who came along later," Helms said. s'? ' At another point in the ' ? hearing Helms was asked ? about the CIA role in the ,? burglary of the Beverly Hills offices of Daniel ? Ellsberg's psychiatrist. .. Helms indicated disgust over White House requests ? of the agency he formerly headed. .... He said the CIA went along with requests for the ? assistance because "assistance of the Preis- "' " dent has not been a crime until fairly recently." ? TWO WEEKS AFTER , the November election, Helms was informed by ? Nixon that he would be ? removed as CIA director , ? and reassigned as ambas- sador to Iran. Helms has refused to discuss his con- versation with Nixon, on ' ?the reasons for his remov- al. . - But in the face of wide- spread speculation in the wake of the most recent Watergate revelations that Helms' departure was re- lated to his refusal to in- volve the CIA in the eover- up, Helms today only . pleaded ignorance when asked directly if that was the reason for his forcel resignation. The senators also pressed hard on the ftic that Walters, Helms' depu-1, ty who was specifically chosen to do the White House bidding, was a fori mer interpreter for Nixon' and had been the Whit?e House choice to be CIA deputy. Helms admitted today, "I would have preferred to have an agency man put in the job." ' WIIEN ASKED further by Sen. Charles H. Percy, why Haldeman and the other White House aides concentrated their attention on a White House appointee, Helms conced- ed, "I thought it very odd at the time." Committee members, Percy included, hastened . to stress they meant no criticism of Walters, who in the face of the White House pressure, obeyed Helms' directive and re- fused to cooperate. WASHINGTON STAR COMMUNICATIONS, INC. 225 Virginia Aviv. S.E., Washington, D.C. 20003 404-5000 SUBSIDIARY and AFFILIATED COMPANIES THE EVENING STAR NEWSPAPER CO. THE EVENING STAR (LROADCASTINO CO. (WMAL?AMFMTV) MST CHARLESTON CORP.. Chorlooton,SC. WCIV-"A ' vii.vA INCORPORATED. ' ( Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 LLNS,AlLeti his motives"?and the burglary at the of- fice of Ellsberg's psychiatrist followed. Approved,,FO 4,049 INIWARATIAMIld- in frTFad it re- ported to the judge in the Ellsberg trial after learning about it this spring. But he added that, given the stress he put on national security, be could "underStand how highly motivated individuals could have felt justified in engaging in specific activities I would have disapproved." When the political scandals of 1972 broke, Mr. Nixon said, his single fear was not that the truth of Watergate might out but that the inquiry might blunder into covert national-security operations. Cis fears were quickened by the involve- ment of one of his plumbers, Hunt, in the Waterbugging, and .by a report to the President?he didn't say from whom ?"that there was a possibility of CIA in- volvement in some way." He accordingly told his two top hands, H.R. Haldeman and John Ehrlichman, to see that the in- vestigation was restricted to Watergate and prevented from exposing either CIA or plumber operations. Four weeks ago, in his TV speech on the scandals, Mr. Nixon embraced Haldeman and Ehrlich- man even as he bade them farewell; now, naming no names, he said some of his people "may have gone beyond -my directives .. , in order to cover up any in- volvement they or certain others might have had in Watergate." UPI Magruder: The man who turned ? President's accounting, during the spring and summer of 1970?a time of prolifer- ating campus riots, terrorist bombings and open warfare between "guerrilla- style groups" and the police. Intelligence gathering, Mr. Nixon said, was in trouble at the time because the FBI had aban- doned "certain types of undercover op- erations"?including burglaries?and be- cause the aging Hoover was in the process of breaking off relations with ev- ery other agency in the field. Breaking and Entering The President convened a crisis meet- ing of the major intelligence agencies in June; they returned a report calling, among other things, for "surreptitious entry?breaking and entering, in effect? on specified categories of targets" in the national-security field. The President ap- proved the plans in July but called them i off five days later on Hoover's pro- tests, and they were never implemented (box). Still, said Mr. Nixon, some of the plans involved foreign intelligence matters, and the documents describing Ahem?the John Dean papers?remain "extremely sensitive" to this day. The vacuum in intelligence gathering continued, Mr. Nixon said, and he moved the White House into it, first trying to ramrod the established agencies with a special Intelligence Evaluation Commit- tee?and later, in 1971, organizing the secret in-house gumshoe squad known formally as the Special Investigation Unit and informally as the "plumbers." The unit, headed by Egil Krogh and staffed by Waterbuggers-to-be G. Cor- don Liddy and E. Howard Hunt, was first assigned to the leak of the Penta- gon papers by Daniel Ellsberg to The New York Times. It looked at the time, Mr. Nixon said, like a "security leak of unprecedented proportion"; he directed .18 HS/He-AI? When the Shouting Stops The first audience for the statement was the White House press corps, a body now almost at open war with the Administration's front men?and the newsmen received it with almost un- precedented ferocity. Garment and the President's newly appointed special counsel on Watergate, J. Fred Buzhardt, took turns not answering questions about the 1970 breaking-and-entering plans. "I have no authority to declassify the docu- ment," Buzhardt finally protested. "Class- ified or otherwise," one reporter shouted back, "do you realize you are leaving unanswered the question of whether or not the President of the United States (Continued on Page 20) P. Brennan with apolozlom to Chm-len SchultZ n ! 11101101? U e- OR ??20001A?? PER r SECRET POLICE La the low-key, bureaucratic language I used by the President last week, they were "specific options for expanded in- telligence operations." What that really amounted to, however, was the most wide-ranging secret police operation ever authorized?however briefly?in the peacetime United States. It called for an unprecedented cooperative effort by the nation's most powerful intelligence age] leies : the FM, CIA, National Se- curity Agency and Defense Intelligence Agency. And it paved the way for bug- ging, burglary, perhaps even blackmail by government agents against American citizens?among them Federal employees, antiwar activists, campus radicals and militant Black Panthers?as well as for- eign students and diplomats. The plan was operational for only five days in the summer of 1970, and the Administration says it was never im- plemented. But the potential was strik- ing. "When you read it," predicted a Congressional source, "it will send chills up and down your spine." More chilling still, there was mounting evidence last week that the plan had helped spawn Watergate, the break-in at Daniel Ells- berg's psychiatrist's office?and a string of other burglaries by clandestine op- eratives of the Nixon Administration. Risks: Under the original plan, the FBI was authorized to take on foreign in- telligence assignments inside the U.S. (embassy break-ins, for example), while the CIA got a green light to run its own domestic operations?including. NEWS- WEEK learned, spying on high U.S. offi- cials who were suspected of being se- curity risks. One of the proposals would have created a new cadre of "super CIA agents" for domestic missions, opera- tives who could not be traced to the agency and whose identity and assign- ments would be concealed from all but the highest agency officials. "The whole purpose," said one source familiar with the document, "was to try to get in- formation on matters the Administration felt endangered national security by whatever means were considered neces- sary. But a lot of what was proposed didn't deal with national security at all, In many ways it seems like just an excuse for domestic spying." Similar activities had been carried out routinely by the FBI against foreign agents from World War II through the mid-60s. What made the new strategy so significant was the way it broadened the target to include domestic radicals and other citizens whose direct ties to foreign governments were questionable ill1111111111111111111111111,11111111111,111111/011/111111111111111111111111110111111111111111.01,1111111,1111111111111.21V1111111.11111.1,1,1011,1,10.,1,1......,.....',,,. proved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Newsweek f. ------Approvedfosplease-2001/09/04-relARDP8441049WM20011111,22"' NATIONAL AFFAIRS best. It also brought the overseas-ori- ted CIA, DIA and NSA into a far Ire comprehensive domestic partner- ip with .the FBI, in the process erasing my of the carefully drawn limits by .tich these agencies had previously 'Tit bound?at least on the record. :The background of the plan, sketched 0: week in the President's Watergate itement and amplified by several in- lligence experts, was as fascinating as -t.! document itself. At the time it was (pared, in June of 1970, FBI boss J. agar Hoover, then 75, seemed to many gli government officials to be losing his 'ip. More important, the bureau seemed tralyzed in tennis of its own intelligence ork?and cut off from other agencies. Secret lawbreaking had been part of le FBI repertoire since 1941. With the ,rmal or tacit approval of each succeed- g Administration?sometimes just a eflectiveness. But there is solid evidence migh ave prompted the wide-spread that Hoover had not kept up with chang- ing styles of radical activity, and that he had largely ended liaison between his men and other investigative agencies. "We read about the Columbia University riot in the papers," one veteran agent re- called. "Hell, we were getting half our information from the newspapers." By the summer of 1970, the White House was seriously concerned over the wave of domestic unrest apparently fo- mented by radicals and ghetto militants. By one accounting there were 1,792 campus demonstrations in the 1969-70 school year alone?plus 274 cases of arson, fourteen bombings, eight deaths and 7,500 arrests. More than 200 cops were attacked in racial incidents be- tween January and November of 1970? with 173 wounded and 23 killed. Spe- cifically, there was concern about such repression of civil liberties. The result, NEWSWEEK learned, was that a plan for traditional counterintelli- gence aimed at foreign agents soon met- amorphosed into a new scheme in which "heavy methods" would also be focused on Panthers, the Berrigan brothers, SDS and other leftist groups, draft dodgers and deserters. It proposed opening radi- cals' mail and harassing them with tax audits. "It is a totally far-right view," said one Congressional source. "It fre- quently brings up the question of legali- ty and concludes that the problem is WO great to consider legal niceties." Pigeonholed: On July 23, 1970, the plan was approved by Mr. Nixon. But the approval was withdrawn five days later, after Hoover refused to go along. The FBI boss had scrawled objections on almost every page; he may also have John Maly--NoW York Times , A question of intelligence: Huston (above), hoover with the President ,ink or nod?Hoover mounted a broad rray of illegal "special programs." ,gents tapped telephones, bugged rooms rid traced mail to and from subjects un- er investigation. "We had a virtually rce hand," recalled one bureau veteran. The boys would do what they had to .. And if they got caught, Hoover /ould disavow them." The free hand acluded the "surreptitious entry" breaking and entering) mentioned last veek by the President, infiltration of Uspect groups and the blackmailing of -orcign diplomats?studying their person- alties, then luring them into compromis- ng situations to get information. Spy Rings: Following a 1965 White louse order, Hoover dropped the dirti- :st of those tricks. The nation that once ,pplaudod their use against Nazi sabo- curs and Communist spy rings was now css enthusiastic about counterespionage echniques turned against college kids Some former FBI officia0PBrgIngaFt c)rrilserfilfa At* kiwi." Ind antiwar matrons. 'tone of this interfered with the FBI's cern that continued unrest at the time p groups as Weatherman and the Panthers (were they receiving funds from coun- tries in North Africa and the Carib- bean?) and suspicion that Arab students in the U.S. might be plotting to sabotage Mideast peace talks at the U.N. "What the hell were we to do?" demanded for- mer White House aide Tom Charles Huston last week. "Wait until people got killed? Tho President did not believe he had adequate information to deal with the magnitude of this problem." Mr. Nixon's solution was a joint meet- ing with Hoover, CIA boss Richard Helms, Lt. Gen. Donald V. Bennett of the DIA and Vice Adm. Noel Gayler of NSA. Out of this session grew the idea for unifying and expanding critical intel- ligence activities. Perhaps the key fig- ure, however, was young (then 29) Huston, who was assigned by the White House -to help draft the plan and who seemed obsessed by the threat of do- ? Iragnaltoo been loath to share the bureau's sole responsibility for domestic operations. In any event, Hoover protested to Attor- ney General John Mitchell, who backed Hoover's case. Some six months after the plan was officially pigeonholed, however, copies were distributed within an inter- departmental intelligence unit set up by Assistant Attorney General Robert Mar- dian?later a top Nixon campaign aide. Tho plan was dead but its spirit ap- parently lingered on. Over the next two years, NEWSWEEK learned, undercover agents for the Administration made sur- reptitious entries to undermine the de- fense in at least three cases against rad- icals: the Panthers, the Berrigans and the Chicago Seven. White House counsel John Dean, who had worked with Mar- dian's group, obviously considered his copy of the plan worth filing. Also work- ing with Mardian, as a Treasury repre- sentative, was ex-FBI man G. Gordon 9,04114e White House glary and the ot now 'known as Watergate. ,II?111/IIIIIII,IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.11111,011111111111111111111111111111M111111IIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111,11111111111111111111/1111111111I11111111111111111111111111111111111111111111111111111111111I11111111111111111111111/111111111111111111111111111111111I/IIIIIIIIIIIIIIIIIII/1111111111111111.1111111111111.1111111111111111111.1111111111111111111111111/11111111111111,-IMMIIIIII,IIIIIIIIIIIIIIII11111,111111111111111111111,1111111.111.1.1111111111111.11M1111111 1.11111 " Approved For Release 20 BIG DEALS IN SAN CLEMENTE As if Watergate weren't enough, yet another embar- rassment bobbed up last week to haunt President Nixon? the curious story of how he came to be lord of the manor at La Casa Pacifica, his palmy, 29-acre estate in San Clemente, Calif. Questions about the deal had been bobbing up ever since Mr. Nixon bought the mansion that now the Western White flonse in 1009 for $1.5 million. Two weeks ago the Santa Ana Register reported that 4 :NGIA\REP84401:1499ROOD2f00810406Kc with money left over from his 19 'residential campaign. The report brought an angry denillrfrom the White House. But when the details were finally released last week, the story got curiouser and euriouser. As the White House told it, the original down payment was financed by a $625,000 loan to the President from his friend Robert G. AbPlanalp, the millionaire machinist who perfected the aerosol spray valve. The deal was handled by Mr. Nixon's former personal lawyer, Herbert Kalmbach, the man who ran the $1.7 million campaign fund that was tapped in 1972 to pay the Watergate burglars. . Originally, Mr. Nixon had hoped to sell all but 5,9 acres of the property to a "suitable buyer"?perhaps the trustees of a proposed Nixon Presidential library. But as the White House told it last week, Abplanalp himself bought the land nearly two and a half years ago, for $1,219,000. Oddly enough, no deed was recorded. Whatever questions remained, the President could boast of a notable deal. After all the intricacies were netted out, he owned one of the choicest homes in Cali- fornia for a total investment of $374,514?and thus far he had actually paid just $33,500, (Continued from Page 18) approved felonies?" Jeered another: "You certainly know enough about law to know that, Fred." At yet another point, a re- porter demanded furiously when the President was going to submit to ques- tioning himself; the answer, leaked in- formally later, was, not until the press stops shouting at his people. The scene was ill-tempered, but the statement looked little better on second reading. It pledged at the outset not to put "a national security 'cover'" on Wa- tergate?and proceeded to put one on parts of the Watergate cover-up and most of the collateral scandals as well. It moderated the President's position only enough to accommodate damaging evidence that had already come out and to keep other embarrassments?notably the Dean papers?bottled up. What He Didn't Say Otherwise, the statement pleaded Mr. Nixon's innocence of everything. It re- ferred only glancingly or not at all to the related fast practices Watergate has come to stand for?the political dirty tricks, the under-the-table funding, the shredding and burnbagging of evidence, the influence-peddling case that brought a former Attorney General and a former Commerce Secretary under indictment. And it refused to acknowledge the clear linkages between the 1969-71 secret- police operations sanctioned by the Pres- ident and the 1972 political marauding that he says caught him by surprise. They had "no connection," said Mr. Nix- on. But they did, in style, zeal, method, personnel?and soul. The statement was vulnerable as well on point after specific point: = The Hoover Problem: The passage in the statement about the low estate of American intelligence gathering in the last days of J. Edgar Hoover amounted 20 to a confession by the President that he couldn't control or fire the man be held responsible. "If the FBI under J. Edgar Hoover wasn't dependable," one GOP senator asked, "why keep him on?" One well-wired source offered NEWSWEEK a reason: Hoover had in his files some ma- terials regarded by the Administration as very, very damaging to persons on the White House staff," and he was not above using them to insure his tenure in office. He served, in any case, until his death a year ago; his most private files were thereafter removed to his home by his deputy and lifelong friend Clyde Tolson and have never surfaced. ? The Ellsberg Break-In: The President's apparent inability to cope with Hoover led in turn, by his own narrative, to the creation of his own security-police unit when the Pentagon papers broke. The available evidence suggested that he overreacted?that the publication of the papers was far more an embarrassment than a threat to national security and that the FBI in any event had known for more than a year that Ellsberg had been copying the documents. Mr. Nixon nevertheless put his plumbers on the case; his protest that he would never have approved a burglary in this nation- al-security case sorted oddly with his admission that he had said yes to a whole run of them?at least in theory? the year before. His defense, indeed, rested on the odd proposition that he had been concerned enough about intel- ligence leaks to create a covert-opera- tions unit, but not enough to ask there- after what it was doing. Mr. Nixon did not even mention that his black squad had drawn the CIA into the caper in a support role, in plain violation of the laws barring it from domestic operations. The agency's for- mer director, Richard Helms, now in less-than-happy exile as ambassador to Iran, and its surviving deputy director, Lt. Gen. Vernon Walters, toured Capitol Hill last week trying?apparently suc- cessfully?to persuade thc agency's friends there that they went along re, luctantly under White House pressure and even then were unaware that it was a burglary they were supporting. NEWS'WEEK learned that the agency had in fact bugged one of its own offices the day plumber Hunt came to pick up his disguise, faked papers and other pare- phernalia; the legs suggest that Hunt ducked questions about what he was up to and answered only that it was a high- level White House mission. ? The Ellsberg Cover-up: Mr. Nixon did a fast semantic two-step suggesting that, far from trying to cover up the burglary, he had in fact ordered on April 25 that it be reported "immediately" to the Ellsberg trial judge, W, Matthew Byrne. But new evidence indicated that he had in fact been sitting on the information for a month?a silence that put a more damn- ing cast than ever on the affair and on the President's credibility, The agent of his embarrassment was his new Attorney General, Elliot Richardson, whO testified at his confirmation hearing that the Pres- ident himself had mentioned having heard about the break-in from Dean in late March. At that time, the White House insisted, his information was still 'fragmentary. But the fact remained that the President had at least an inkling of the burglary when his man Ehrlichman twice offered the FBI directorship to Judge Byrne in early April?and when he himself chatted with the judge at one of the two trysts. ? The CIA Connection: The President de- fended his having limited the Water- gate investigation in part by citing his unattributed tip that the CIA might have been involved and should be protected. But both Helms and Walters told Con- Newsweek, June 4., 1973 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved Foil&lease 2001/09/04: CIA-RDP84-00499470200010002_2VATIONAL gressional committees on their rounds that Mr. Nixon had never asked them if it were true. Instead, as they told it, Haldeman and Ehrlichman had simply asserted that the agency might be com- promised if the FBI nosed around in the Mexican money-laundering operation that ultimately bankrolled the Water- buggers; Walters in fact quoted Halde- man in a memo as having said it was "the President's wish" that they tell Gray to call off his agents. There were continuing intimations, moreover, that some of the President's men?far from trying to pro- tect the CIA?wanted it to take the rap for the Watergate bugging and thus smother the whole affair in a national- security blanket. Mr. Nixon said he had no part of any such scheme. It appar- ently survived nevertheless: McCord, an ex-CIA technician, sent the agency sever- al anonymous but easily traceable letters between July 1972 and January 1973 warning that the White house was trying to hang the rap on them. The white paper as a whole was in one sense a homecoming for the Presi- dent to the politics of national. security? a theme that has threaded through his entire quarter-century in government. He fairly glowed while delivering it to the assembly of POW's the next after- noon in an arm-waving, flag-and-country speech; that night, the ex-prisoners and their wives and sweethearts came over to the White House for an all-star gala (Sammy Davis Jr., Bob Hope, Joey Heatherton, Irving Berlin, Vic Damone, Ricardo Montalban), and the whole crowd sang "God Bless America." But the statement was in another sense a measure of how badly the bur- AFFAIRS Cox, Richardson: The question was 'a kind of blcazincss' geoning scandal has diminished Mr. Nix- on's options: national security was per- haps his last available defense. He had long since abandoned his position that none of his people were involved; now, he was fighting for his own personal survival. The foxhole no longer had room for anybody else, not even Haldeman or Ehrlichman; they were gently but unmistakably cast out. Some close readers of the text guessed that Mr. Nixon's delicacy in doing so, and his omission of any mention at all of UPI Mitchell's ill fortune, might reflect the probability that his future now rests on their continuing loyalty under the klieg lights and the drumfire questioning yet ahead. Dean remains a danger, though some Nixonians were satisfied that the worst tales he can tell have already been told. "It would take one of the big three?Haldeman, Ehrlichman or Mitch- ell?to get him," said a former Nixon op- erative, "and I don't see any of them turning on him at this point." If he was troubled by the dangers SPREADING STAIN JUSTICE... H31 .. CIA ... STATE... SEC The spreading stain of Watergate has dealt a punishing blow to the prestige and authority of the White House, - but it has tarnished pther agencies of the government as well. The damage so far: - se DEPARTMENT OF JUSTICE: Former At- torney General John Mitchell conducted - strategy sessions in his office at which G. Cordon Liddy- reportedly proposed "mugging, bugging, kidnaping, and even - a prostitut ion squad," and James Me- Cord jr. says Liddy told him that Mitchell specifically approved - the Watergate. break-in. Robert Mardian, Mitchell's pro-: t6g6 formerly in charge of the depart- ment's Internal Security Division, is said to have opened the department's files to Liddy and E. Howard Hunt a year be-- fore the break-in. McCord says he re- ceived daily reports on the comings and goings of Democratic Presidential candi- dates from Mardian's unit. Mitchell was indicted in the Vesco influence-peddling case. His successor,A .191010E44:kg& ? si ? who has managed so low o stay clear of the taint so far, was forced nonethe- less to ro-;31.pi on April 30after learning: . how many of his close: associates had - been implicated. : a THE FBI: Former acting director L. Patrick Gray III has admitted giving White House counselor John W. Dean III free access to Watergate files, oven after he began to suspect Dean and oth- ers of manipulating the FBI and the CIA in the cover-up. Gray accepted and destroyed two files from burglar E. How- ard Hunt's White House safe, given to him by John Ehrlichman and Dean. Gray* also allowed Ehrlichman to cancel a meeting he had arranged with CIA di- rector Richard Helms to compare notes on the cover-up-,and he never sched- uled another. ? al THE CIA: Two Watergate burglars, McCord and Hunt, were ex-CIA men who had served nineteen and 21 years with ? the agency. The CIA provided Hunt and Liddy With wigs, voice distort- ers, false papers and a special- camera to - a tV OiletialAisdbhgff ItTEI*84 -Rum e nis a ee give the White House "plumbers" a psy- chiatric profile of Ellsberg, assembled from CIA files, but later refused further aid. Deputy CIA director Vernon A. Walters, under orders from Presidential aides H.R. Haldeman, Ehrlichman and Dean, helped to stall an FBI investiga- tion of the financing of the Watergate mission. There was a concerted White House effort to pin the bugging on the CIA, but Helms never protested to Mr. Nixon or reported these activities to the CIA's Congressional watchdogs. a DEPARTMENT OF STATE: Under orders from the White House, hunt was given access to 240 secret State Department cables from which he falsified docu- ments linking John F. Kennedy to the assassination of South Vietnamese Presi- dent Ngo Dinh Diem. a THE SEC: After a New York grand jury reported that he had improperly handled an SEC complaint against in- dicted financier Robert Vesco, SEC chairman G. Bradford COOK resigned. #201041 ary of State, was also under J. Casey, now under fire last week for SEC decisions involving Vcsco and ITT. Approved Forease 2001/09/04: CIA-RDP84- 0499W0200010002-2 $1111.*W14:11..1 I - ? , ... -, ,.... ,1:11,1-.7. III IIIIIIiIII?Ift,01:.il.lititInti . . ? ITIAIIII., . iWiliIiir.IIIrtIrtie . ? , Iltsiilllillifilii:nIllifili,ilIC..oili Ilist*,tilivillihi.,111wio.1;iitit 111..e r;ii1)'1111I1f10i1111 I: HEADQUARTERS OF THE CENTRAL INTELLIGENCE AGENCY AT LANGLEY, VA. TIME has learned that one member of the plumber team, David Young, for- merly of Henry Kissinger's national se- curity staff, has sought immunity. He has Oeen granted it by the prosecutors and is expected to tell whatever he knows about any leak-plugging opera- tions that arc related to the obstruction of the Watergate investigations. That could be a critical test of the security de- fense that Nixon has raised. Stage Set. Another key witness, Jeb Stuart Magruder, former deputy di- rector of the Nixon re-election commit- tee, has agreed to plead guilty and turn Government witness. Since he has ad- mitted sitting in on the meetings in At- torney General John Mitchell's office at which the Watergate spying plans were first discussed, he is believed to have great knowledge of the burglary and the cover-up. With the Senate confirmation last week of Attorney General Elliot Rich- ardson and the implicit approval of his chosen special prosecutor, Archibald Cox, the stage is set for an all-out pur- suit of the guilty: Democrat Cox, an ag- gressive Solicitor General in the Ken- nedy Administration, declared in Richardson's presence that he did not intend to "shield anybody, and I don't intend to be intimidated by anybody." He said that he would feel free to pro- test publicly if anybody tries to ham- per him and that he will pursue the ev- idence "wherever that trail may lead." Despite the new Nixon statement, that path may still pass uncomfortably close to the Oval Office. For all of those Senators, jurors and other investigators charged with seeking the truth about Watergate, the Nixon brief raises al- most as many questions as it answers. Washington Democratic Senator Henry Jackson, who sits on the Armed Ser- vices ComMittee that has watchdog au- thority over the CIA, suggests that the committee should send Nixon a set of written "interrogatories." Says Jackson: "At some point socaiiipprdwaid EgroRgl to appropriate questions," Already tlw Pi't=cient's new secu- riltf hhinkt ". Frnt !-1/- tlir? SECURITY Jill parrs 133 ar "The danger to political dissent is acute where the Government attempts to act under so vague a concept as the power to protect 'domestic security.'" So wrote Justice Lewis Powell, a Nixon ap- pointee, in the 1972 Supreme Court opinion that forbade the wiretapping of domestic organizations and individuals without a court warrant. Ironically, the court issued its decree just two days af- ter the Watergate conspirators were caught with electronic surveillance equipment in the headquarters of the Democratic National Party?a legiti- mate political dissent organization if there ever was one. The twin terms "domestic security" and "national security" are so broad that they can be invoked to cover a mul- titude of actions?many of them in vi- olation of the Constitution. But the agencies normally responsible for pro- tecting the nation from both foreign and internal threats (see box following page) are federal bodies sanctioned by law. The Nixon Administration not only re- defined national interest to include the personal and political aims of the party in power?but set up on its own a White .1, EDGAR HOOVER se 2001/09/04 (CIA-RDP84-0 IHS/HC- $11. tZVIENtf House security agency that was neither established by law nor responsible to the Congress. Why did the Administration fee i it necessary to form the President's own extralegal security apparatus? The experience of Lyndon John- son's Administration undoubtedly in- fluenced the Nixon men. Johnson re- sisted the temptation to use the ever more sophisticated electronic surveil- lance equipment for domestic intelli- gence. But by the late 1960s he sought desperately for a way to cope with wide- spread and often simultaneous urban riots. Attorney General Ramsey Clark sent a tough memo to FBI Director J. Edgar Hoover, urging him to use "max- imum available resources" of his agen- cy to investigate and predict riots. An- gered at Johnson's refusal to allow wiretapping and electronic bugs against gangsters, Hoover balked. In fact, he proceeded to scrap many of the FBI's more dubious but productive tech- niques, such as burglarizing the homes and monitoring the mail of suspected spies and criminals. Stymied by Hoo- ver and realizing that not even the 8,700 agents of the FBI could cope with riots, the Johnson Administration turned to the U.S. Army as a tool of massive retaliation, giving it new char- ters to collect intelligence on civilians in the process. When Nixon took office, he was confronted by much the same climate of urban unrest and growing racial militancy. He also had to cope with new dangers?bomb-throwing anar- chists, skyjackers and an exploding drug traffic. White House officials quickly en- couraged the Army to step up its domes- tic intelligence operations. Within two u...114kniMptapj,2,1 million "person- mmmu,6 Y6rihe victims, Adlai Stevenson III, then Illinois state treasur- er, was to call the operation "Kafka in e,f PI For iiickalenitormindAtetett9 The nation's intelligence system is un- questionably large but it is anything but monolithic. It is a loose aggrega- tion of agencies, each with a specific role and place, wary of any encroach- ments on its prerogatives. The prin- cipal members: CENTRAL INTELLIGENCE AGENCY, Di- rector-designate: William Colby. Esti- mated number of employees: 15,000. Estimated budget: $750 million. Es- tablished by the National Security Act of 1947 to replace the World War 11 Office of Strategic Services. Officially supervised by four congressional com- mittees, but largely autonomous and excused by a 1949 law from any ac- counting of the funds it gets or spends. In charge of espionage and clandestine operations abroad as well as overt in- telligence-gathering activities; forbid- den by law to exercise any police, sub- poena or law-enforcement powers, or internal security functions in the U.S., but has occasionally interpreted these laws freely. Grown somewhat fat over the years, was ordered this year to cut its staff by 10%, but cuts are still not completed. The director of the CIA also serves ex officio as chairman of the U.S. In- telligence Board, which reports to Pres- ident's National Security Council (see diagram). The board coordinates and supervises major American intelligence activities, and exercises supervisory control over every other security system. DEFENSE INTELLIGENCE AGENCY. Direc- tor: Vice Admiral Vincent P. dePoix. Number of employees: 5,000. Budget: $129,300,000. Set up by Robert S. Mc- Namara in August 1961, after the CIA intelligence for Bay of Pigs invasion proved disastrously inadequate, and be- cause the three military services' op- erations suffered from a lack of over- all evaluation. The agency operates under the direction of the Secretary of Defense. Charged with assessing the worldwide military situation, the De- fense Intelligence Agency coordinates the conflicting and not infrequently self- serving intelligence operations of the three armed services?Army's 0-2, Of- fice of Naval Intelligence and Air Force's A-2. DIA men tend to view CIA men as the spoiled darlings of the in- telligence community. The CIA, which once dealt directly with military in- telligence services, resents MA's role as middleman, and tends to look upon CENTRAL INTELLIGENCE AGENCY # .0 rn dw DEFENSE INTELLIGENCE DEN CV FEDERAL 3UREAU OF INVESTIGATION U.S. INTELLIGENCE BOARD NATIONAL SECURITY AGENCY DEPAM111,rf OF THE TP.EASUW( flM Chtlt ,y i.Ail ,rrArEs ATOitt!C FNEPGY COMMIE?SION rtEr,u OF INTELLIGENCE Pa41..) RESL-ARCH 2 4 ? "-? members as minor-league spies. 00200010002-2 ATIONAL SECURITY AGENCY. Direc- tor: Lieut. General Samuel Phillips, U.S.A.F. Employees: 25,000. Budget: classified. Created in 1952 as a sp- an te agency within the Defense De- partment. Makes and breaks codes, de- velops techniques for electronic sur- veillance of foreign troop and ship movements and construction of military facilities (NSA equipment was used on the U-2 spy plane shot down over Rus- sia in 1960). BUREAU OF INTELLIGENCE AND RE- SEARCH. Director: Ray S. Cline. Em- ployees: 335. Budget: about $8,000,000. Intelligence arm of the State Depart- ment since 1947. Charged with gath- ering and analyzing information essen- tial to U.S. foreign policy. Staffed by economists and academicians. Prepares studies on subjects as diverse and es- oteric as Albanian public health sys- tern and the clove industry in Zan- zibar. Generally considered a "clean," as opposed to "dirty" or covert oper- ation. ATOMIC ENERGY COMMISSION. Direc- tor: Dr. Dixy Lee Ray. Total employ- ees: 7,000. Overall budget: $2,500,000,- 000. Established in 1946 to govern development of atomic energy. Also maintains a constant watch on the atomic capabilities of other countries, detecting and identifying nuclear tests. DEPARTMENT OF THE TREASURY. Direc- tor: George P. Shultz. Total employees: 117,462; 100-200 directly involved in intelligence. Oversees Bureau of Cus- toms and Bureau of Alcohol, Tobacco and Firearms. Thus responsible for nar- cotics investigations. Department also includes Secret Service, which protects President and other top officials, main- tains liaison with Interpol, the inter- national criminal police organiation. FEDERAL BUREAU OF INVESTIGATION. Director: William Ruckelshaus. Em- ployees: 19,857 (including 8,700 agents). Budget: $336,300,000. Number of field offices: 59. Established in 1908 as investigative arm of the Justice De- partment, the closest U.S. equivalent to a national police force. FBI has ju- risdiction over wide range of crimes from assassination of a President to bank robbery, kidnaping and transpor- tation of stolen cars. Since 1936, has had jurisdiction over espionage and sab- otage within the U.S. J. Edgar Hoo- ver, director from 1924 until his death last year, expanded FBI authority to in- vestigate Communists, Ku Klux Klans- men, radical students and other ele- ments he considered a threat to national security. The bureau's latest assign- ment: getting to the bottom of the so- 9Rvii6615119rOdosed"1- TIME, JUNE 4, 1973 independent third party. One man, who is' reported to have been among thrwe bugged, claims thAriprimpedlzpd&Red by the idea of Kissinger's listening tet'Ws office calls, but he resents the idea that Kissinger monitored his personal life. Kissinger's academic colleagues are also disturbed about his involvement in the bugging. One noted journalist decid- ed to boycott a 50th birthday party that Kissinger's old friend, Harvard Profes- sor Guido Goldman, scheduled for him at New York's Colony Club over the weekend. Others have merely wondered how a man like Kissinger could have al- lowed himself to be so compromised. Just why Kissinger did allow it re- mains unclear. He himself has said that he regrets the whole episode, hut that he was told that it was the usual prac- tice followed in previous Administra- tions. Some observers believe Kissinger was truly concerned about security and worried that leaks would damage del- icate negotiations, though most agree that the disclosures in question con- cerned information that was a secret only to the American people, not to the Communists. Hard-Nosed. A few suspect that Kissinger wanted to solidify his position with the President by proving that he could be just as "hard-nosed" as White House Aides Bob Haldeman and John Ehrlichman. Such a desire would derive naturally from Kissinger's past career at the White House. Trapped between the hostility of Haldeman and Ehrlichman, who distrusted any signs of indepen- dence, and the jealousy of State Depart- ment officials who resented his power and success, Kissinger has been a target of sniping ever since he joined the Ad- ministration. He has tried on three sep- arate occasions to resign. Each time, his friends have persuaded him to stay on. Kissinger, who feels that he has been misunderstood by his friends, is upset by the doubts about his behavior. But his anger has not prevented him from doing his job. Aside from his talks with Le Due Tho, he spent the week in Par- is working out the agenda for President Nixon's meeting with French President Georges Pompidou in Iceland this week. He seems determined to contin- ue. "We have got to get back to gov- erning," he told TIME Diplomatic Ed- itor Jerrold Schecter. "The fact that a few frivolous zealots misused their trust does not mean that we can stop func- tioning as a government." Whether Kissinger himself can con- tinue to function will depend upon his ability to maintain the confidence of both the President and the international community. His departure, which docs not now seem likely, would be unfor- tunate. Even Kissinger's critics ac- knowledge that both his policies and his tactics have helped normalize relations with mainland China, promote detente with the Soviet Union and reduce the U.S. role in Southeast Asia. Few want to see the architAPPrQ10461 if al forced from office. 26 THE HEARINGS eiegfrifi et Orders Senator Sam Ervin's Watergate com- mittee has promised to expose all the secrets of the scandal, but while the var- ious accusations and defenses reverber- ated through the top levels of Wash- ington last week, the Ervin committee lumbered along in pursuit of lesser men. In the long, slow process of build- ing their case, the committee members were paternally patient, indulgent even, as they questioned, one after another, the fixers and followers and bearers of messages. As the witnesses testified, they soon revealed that they had been drawn into the affair without quite re- alizing what they were doing, that they were more adept at taking orders than understanding them. John J. Caulfield, an ex-cop who had carried an offer of STEVE NORTIIUP had approved the Watergate break-in. The objective, as McCord understood it, was to anticipate the plans of any groups planning violence during the presidential campaign. "Uppermost in everyone's mind at that point in time, and certainly in mine," said McCord, "was the bloodshed which had occurred at the 1968 Democratic Convention in Chicago." McCord ticked off other acts of vi- olence that had filled him?and his su- periors in the White House?with fore- boding: a bomb blast at the U.S. Capitol Building in 1969; the destruction of the offices of Senator John Tower in Aus- tin, Texas, in 1972; the alleged threats by the Viet Nam Veterans Against the War to bomb the G.O.P. Convention; WITNESS JAMES McCORD SHOWING SENATE WATERGATE COMMITTEE HOW TO BUG ATELEPHONE Fixers and followers more accustomed to taking orders than understanding them. Executive clemency to convicted Wa- tergate Raider James W. McCord Jr., described how he had been "injected into this scandal," how he had been forced to choose between obeying the law and obeying the White House, and Sam Ervin remarked: "The greatest conflicts in this world are when we try to choose between two loyalties." McCord, the star witness to date, finally explained his motives for becom- ing involved. As an old CIA hand, he said, "I had been working in an envi- ronment where, if there was ever any question of the legality of a matter or an activity, it would always be sent to high legal officials for a decision on the matter, where, if they sanctioned it, that was sufficient." He added that "left alone, I would not have undertaken the operation." the continued threats against the lives of John and Martha Mitchell. Though he was "completely convinced" that Senator George McGovern and Dem- ocratic Party Chairman Lawrence O'Brien had no knowledge of the con- spirators, McCord believed that Dem- ocratic offices in Washington and Cal- ifornia were being used by plotters. Thus he agreed to participate in raids on both places, though the burglary of McGovern headquarters was never carried out. In the course of his testimony, Mc- Cord brought up another burglary plan that had not been mentioned publicly before. In early 1972, Liddy had said he might need his help in breaking into the office safe of Herman ("Hank") Greenspun, feisty publisher of the Las Vegas Sun. Liddy said he had been in- But his fellow conspirator, G. Gor- formed by Mitchell that Greenspun had don Liddy ,_sought his help,_sing that documents connecting a top Democrat- emic2041M9A4 ROWNRUFF444:104991510K2.0MOOD2adate with racke- Presidential Counsel John W. Dean III teers?though McCord now believes TIME, JUNE 4, 1973 THE NATION Approved Forgo lease 2001/09/04: CIA-RDP84-00499R0P0200010002-2 that there was another motive for crack- Caulfield took this proposal back to ing the safe, (Greenspun thinks that the Dean, who replied: "Go back to him raiders were searching for papers that and tell him that we are checking on might prove embarrassing to Howard these wiretaps, but this time impress R. Hughes, whom Grecnspun was su- upon him as fully as you can that this ing over a real estate controversy.) Once offer comes from the very highest level the break-in was completed, said Lid- of the White House." Caulfield asked dy, the burglars would escape to Cen- Dean if there was a name he could use. tral America aboard a plane owned by "No," said Dean, "I don't want you to Hughes. McCord never joined the raid do that. But tell him that the message and never found out what happened. comes from the very highest levels." Later he read that E. Howard Hunt had Caulfield asked: "Do you want me to forwarded a campaign contribution tell him it comes from the President?" "No," replied Dean, "don't do that. Say it comes from way at the top." Since Caulfield had brought up the name of Anthony Ulasewicz, another little man was called to testify. Once Ulasewicz had outlined his job as a sleuth, Senator Howard H. Baker Jr. asked him if he thought that the "wire- men" on the New York police force were more competent than the Water- gate raiders. Replied Ulasewicz: "Any old retired man in the New York po- lice department ... would not have gone in [to the Watergate] with an army, that's for sure." Judging from the testimony of two other participants, Bernard L. Barker and Alfred C. Baldwin, they were even more in the dark about the affair. A con- victed Watergate conspirator who gave his address as Cell Block 4, District of Columbia Jail, Barker described how his love of Cuba, where he was born and spent half his life, led him to join the Bay of Pigs operation under the su- pervision of E. Howard Hunt Jr. Ten years later, Hunt once again sought his help. Barker made it clear that he was not being paid to think. "I was there to follow orders," he told the committee, "I was part of Hunt's image." When pressed for his'motives, Bar- ker spoke vaguely of national security, as if he were not too certain what the concept meant. He said he had joined the Watergate operation to discover whether the Democrats were receiving campaign contributions from leftist or- ganizations at home and abroad, but nothing to that effect was found. He also had helped burglarize the office of the psychiatrist of Daniel Ellsberg, he said, in order to get information about a "traitor" who he claimed had passed se- cret documents to the Soviets. Convert. Also caught in the Wa- tergate web. Baldwin testified that even when he was arrested, he was not sure what was going on. A onetime FBI agent who had joined C.R.P. with the hope that he might "do well" and "obtain per- manent employment," Baldwin had been working for weeks in the Howard Johnson's motel across from Watergate. With earphones on his head, he jotted down more than 200 conversations from bugs that had been successfully the phones of boAli....gy,liAtierciele OritiOOeliecg bhili44qP?94ti.FM96R0ab"r1""s2jefense. Alch. as probably tapped bPrrcrTY:S., c thougha tonal P ommii o ices uring the dapper as c was indignant, demanded that the Government would be embar- Memorial Day weekend. On the night the right to make a lengthy rebuttal and rassed if forced_ to reveal the taps at his of, the break-in, he was given a walkie- to impugn McCord's testimony. He said from Hughes to the Committee for the Re-Election of the President. Freedom. Like McCord, John Caulfield portrayed himself as more used than using, a pliant tool of higher- ups. Obviously impressed by the fact that he had been plucked from obscuri- ty on the New York City police force to head a special security apparatus in the White House, Caulfield was prepared for almost any assignment. Even so, he balked when John Dean first asked him to convey the offer of Executive clem- ency to McCord, a close friend. By then holding a job as assistant director of en- forcement at the Treasury Depart- ment's Bureau of Alcohol, Tobacco and Firearms, from which he resigned last week. Caulfield wanted someone else to do the job for him. He chose a paunchy ex-cop from New York City, Anthony Ulasewicz, who was on the payroll of Herbert W. Kalmbach, the President's personal attorney. Without identifying himself, Ulasewicz phoned McCord and relayed Dean's message: "1) a year is a long time: 2) your wife and family will be taken care of; 3) you will be re- habilitated with employment when this is all over." McCord insisted on meeting Caul- field face to face. "I objected to seeing Mr. McCord," Caulfield testified. "But finally Mr. Dean got my concurrence to do so." McCord, however, turned down the offer. He told Caulfield: "I have always followed the rule that if one goes, all who are involved must go I saw a picture of some guy who I am sure was involved sitting with his family. I can take care of my family. I don't need any jobs. I want my free- dom." McCord had testified that he be- lieved the clemency offer Caine from Nixon himself, but Caulfield contradict- ed that. He declared that he never said he was speaking for the President. Un- der questioning by the committee, how- ever, he admitted feeling that "the Pres- ident probably did know about it ... Based on that background, I thought I was doing something for the President of the U.S., and I did it, sir." McCord offered a bizarre counter- proposal. He told Caulfield that he had made telephone calls to the Chilean and Israeli embassies in Washington. Since ATTORNEY GERALD ALCH TESTIFYING A INTERMEDIARY JOHN CAULFIELD EX-COP ANTHONY ULASEWICZ Torn between loyalties. headquarters. Eventually, someone whispered over the walkie-talkie: "They've got us." The next thing he knew. Hunt stormed into the room. made a hurried trip to the bathroom, then darted out again, shouting to Bald- win to pick up the electronic equipment and the logs of the tapes and run. Bald- win called after the fleeing Hunt: "Does this mean I won't be going to [the con- vention in] Miami?" Such was the complexity of the week's testimony that even the little men's attorneys got into the act. Mc- Cord had said that his own lawyer for the Watergate trial, Gerald Alch, had advised him to claim that the break-in was a CIA operation. He said Alch also suggested that CIA documents could be client had made such a charge. Replied "Pensterwald: "I can only hazarcl the guess that it is ttApprdvela ele Cord's faulty recollection. I think ou will agree that there is no zealot like a convert.- Taking the offensive, Alch quoted Fensterwald as declaring: "We're going after the President of the United States." Alch said he replied that he "was not interested in any vendettas against the President." But questioning from the committee forced Alch to ad- mit that some of his statements to Mc- Cord might have made McCord suspi- cious that he was working with the White House to get a guilty plea. No sooner had Alch made his pro- test than both Fensterwald and McCord demanded a chance to answer. But the committee decided that it was time to call a halt. The Watergate small fry had already consumed much more time than had been scheduled, and there was growing criticism that the committee should move on to bigger game. Other- wise, it would be several weeks before major figures like John Dean, H.R. Hal- deman and John Ehrlichman were heard from. Responding to this restive- ness, the committee moved up the re- sumption of hearings from June 12 to June 5 ("February 5th at 10 p.m." was what the weary Sam Ervin actually said). Privilege. One of the key witnesses now scheduled to be called is Hugh Sloan Jr., who served as treasurer of C.R.P.'s finance committee. TIME learned that his testimony will spell out how nearly $900,000 in campaign con- tributions were distributed for what Sloan says he later learned were under- cover operations. The money was divid- ed among several different bank ac- counts, the bulk of it going to Kalmbach and Liddy. At one point, according to Sloan, he went to Finance Chairman Maurice Stans to ask why Liddy re- ceived so much. Stans told him: "I don't know, and you don't want to know." Af- ter the break-in, Sloan told the commit- tee in its preliminary investigation, he approached Ehrlichman. Worried that any money found on the defendants (the police reported several thousand dol- lars) would be traced to him, he asked what he should do. Ehrlichman assured him that the matter would be covered by Executive privilege "at least until after the election." Said the White House do- mestic chief: "You are overwrought. You should take a vacation. It is also im- portant to protect the President." In the weeks that followed, Sloan said, he was repeatedly pressured to commit perjury. Jeb Stuart Magruder, then deputy chief of the C.R.P., insisted that they agree on a low figure for the amount of money that had been given to Liddy. Sloan told Magruder: "I have no intention to perjure myself." Replied Magruder: "You may have to." Finally, Sloan went to Sums to offer his resigna- John Dean Warns: A Mile to Go ase 2001/09/04 ? CIA-R0P84-004 His youthful appearance snowing no sign of ordeals past or to come, for- mer White House Counsel John W. Dean In exudes confidence like a Dale Carnegie graduate. He is clear. of eye, strong of voice, steady of hand. His self-assurance may be justified, for Dean is the only major Watergate wit- ness who is both able and willing to tell a lot. He has been using that po- sition to bargain for his own safety from prosecution, an effort in which he has earned at least some support. Senator Sam Ervin's committee has re- quested limited immunity for Dean so that he can testify. But the Justice De- partment so far has refused to go along, on the grounds that it may want to pros- ecute him later. Last week in an in- terview, Dean made a persuasive case for being heard without fear of pros- ecution. While avoiding specific details Dean told TIME Correspondent Hays Gorey that he had information that STEVE NORTHUP ? ? 9Pinggri PAW to the President's /most recent statement on Watergate? The President had to position him- self. The information in his statement [about efforts to set up a special secu- rity unitl was about to be disclosed any- way. This whole thing is still coming out inch by inch?with a mile to go. It may be impossible to travel that full mile. The White House public relations mechanism was obviously at work. I know enough about how that White House mechanism operates, and it was all so evident in that last statement. The eternal hope prevails that somehow they won't have to travel that full mile. Does the President's statement accord fac- tually with your knowledge of the se- curity unit and the other matters it dealt with? That statement was a public rela- DEAN & WIFE WATCHING WATERGATE HEARINGS IN THEIR HOME Willing to talk but bargaining for safety. could further broaden the spreading scandal. How much do you know that has not al- ready been revealed? When all the facts are known, there will be several additional federal grand juries in this country, besides the ones now at work. Why did you go to the prosecutors in the Watergate case when you did? I wanted to be a vehicle to get the truth out. I realized this situation will never end otherwise. I did not go to the prosecutors seeking immunity. There tion, but Stans lw.1 beat hIrl tg it. "1 have were thipgs going on that just had to it as paranoia, exactly, but there was ex- already talkedWRAWYW sflRfliiiitPsEt241/11,109iO4nreitORI:DRI8*-00499R00012000143002112was al! out of pro- "and told them that you resigned." going on that I find distressing. portion. It focused on two subjects: TIME. JUNE 4, 1913 tions statement. Some of it was not quite accurate. Some of it was not accurate at all. What do you know about the special se- curity unit the President was trying to set up? I came to the White House at the tail end of the effort to establish the spe- cial security unit fin July 19701. They were fighting with [FBI Director J. Ed- gar] Hoover. What was the general mood? There was extreme concern in the White House. I wouldn't characterize HS/HC- I Approved For Reletwo 2001/09/04: CIA-RDF'84-00499R00040010002-42 THE NEW YORK TIMES, TUESDAY, JUNE 26, 1973 ??'' 36 L. Dean Says White House Put a 'Friend' in C.I. By MARJORIE HUNTER Specisl to The New York Times , WASHINGTON, June 25 ? in the Deputy Director position John W. Dean 3d testified to- so they could have some in- day that he had been told by a fluence over the agency," Mr. top. Nixon aide that the ,White Dean testified. House had put its own "good Assurance for Ehrlichman friend" into the Central Intelli- Mr. Dean said he later in- ! gence Agency in order to "have formed Mr. Ehrlichman that Ge some - influence over the eral Walters had assured him agency." that agency involvement in the That "good friend," Mr. Watergate was impossible. Dean told the Senate Watergate Mr. Dean said that Mr. committee, is Lieut. Gen. Ver- Ehrlichman responded by say- non A. Walters, Deputy Dir-ec ing "something to the effect tor of the C.I.A. and frequent that General Walters seems to t. interpreter for President Nixon have forgotten how he got on foreign trips, where he is today." This latest disclosure of A spokesman for the C.I.A. Gen. Vernon A. . alleged White House efforts to sa.id that General Walters involve the C.I.A. in domestic would have no comment on the Dean testimony. such other functions and duties activities came amid increas- ing demands by Congress for tighter control over the top secret agency. Within the last few weeks, former and present officials? of the C.I.A. have trooped to Capitol Hill in unprecedented numbers to be questioned for hours at a time upon the ,agenc5es role in the Watergate affair. Out of these harings by both Senate and House committees and subcommittees have come atartling revelations of C.I.A. cooperation with the White House on strictly domestic ope- rations?a field that its own charter would seemingly rule out of bounds. And out of these hearings have come equally stunning ac- counts of White House efforts to enlist C.I.A. aid in covering 'up the Watergate scandals. Shoulder the Blame Mr. Dean's testimony today supported earlier accounts by General Walters and other C.I.A. officials of White House efforts to get the agency to shoulder the blame for the , break-in at the Democratic Na- tional Committee headquarters in the Watergate complex last June 17. At the same time, the Dean testimony appeared to shed light on what had been a pub- licly unanswered question: Why had the White House passed over Richard M. Helms, at that time Director of Central In- ? telligence, to negotiate almoqst ? solely with his deputy on the Watergate matter? ' Mr. Dean testified that, a few days after the Watergate break-in, L. Patrick Gray, then acting Director of the Federal Bureau of Investigation, sug- gested to him that it might have been a C.I.A. operation because of the number of for- mer agency people involved. Mr. Dean said that he later told John D: Ehrlichmann, the President's domestic affairs ad- viser, of Mr. Gray's suggestion and hat Mr. Ehrlichmann told him to call the agency and ex- plore the matter. , "He then told me that I should deal with General Wal- ters because he was a good friend of the White House and the White House had put him Shocked by these and other disclosures, Congressional crit- ics and supporters alike are now calling for stern measures to assert firmer , control over the agency. Won House Approval Just last week, the first move to curb C.I.A. activities came with House approval of a ban on agency assistance to do- mestic law enforcement agen- cies. The Senate has not acted. The provision, sponsored by Representative Elizabeth Holtz- man, Democrat of Brooklyn, was promoted by disclosures that agency employes had been training police officers in New York City and other cities in clandestine activities. Mike Mansfield, Democrat of Montana, the_ Senate majority leader, plans to renew his un- successful drive of many years ago to establish a joint Senate- House committee / to oversee operations of the and other Government intelligence agencies. Senator Stuart Symington, Democrat of Missouri, the act- ing chairman of the Senate Armed Services Committee, has said that he will conduct a full- scale investigation of the evolv- ing "secret charter" under which the agency has operated since its establishment 25 years ago. There are also proposals to revise the agency's basic law either to outlaw domestic operations specifically or to re- quire that any such domestic involvement be permitted only upon the personal request of the President. Domestic Activities Barred The National Security Act of 1947, under which the intelli- gence agency was created, was designed to prohibit it from conducting domestic operations by stating that it "shall have no police, subpoena, law-en- forcement or internal security functions." But the act also contains two major loopholes: First, it gives the Director of Central Intelligence the respon- sibility of "protecting intelli- gence sources and methods from unauthorized disclosure." relating to intelligence" as the National Security Council, an arm of the Presidency, "may from time to time direct." Furthermore, secret execu- tive orders, interpreting the Na- tional Security Act, have been issued through the years, cre- ating what some call the C.I.A.'s "secret charter," now the target of Senator Syming- ton's planned investigation. While earlier efforts to assert greater Congressional control over the C.I.A. were success- fully blocked by successive Ad- ministrations, the recent dis- closures in the Watergate affair have stunned Congress. Cushman Agreed Among the disclosures were the following: ifiIn the summer of 1971 Gen. Robert A. Cushman, at that time deputy director of the agency and now commandant of the Marine Corps, agreed to a White House request to supply E. Howard Hunt Jr. with a wig, false identification papers and other items later used in burg- larizinab the California office of Dr. Daniel Ellsberg's former psychiatrist. CIScarcely weeks later, Mr. Helms, then director of the agency and now Ambassador to Iran, agreed to another White House request for preparation of a psychological profile of Dr. Ellsberg, who was later indicted for leaking the secret Pentagon papers on American involve- ment in Southeast Asia. Helms and General Walters, the deputy director of the agency, have told of Mr. Ehrlichman, two of Presi- dent Nixon's top aides, to per- suade the agency to halt an inquiry by the Federal Bureau of Investigation into Nixon re- election campaign funds that were channeled through a Mex- ico City hank to hide thei source. Some of these funds were found on the persons of the men caught breaking into the Democratic National Com- mittee headquarters. General Walters also has told of efforts by Mr. Dean to get the C.I.A. involved in a futher cover-up of the Water- gate affair by asking the Second, the act gives the agency to pay ball and salaries agency authority "to perform for thhe jailed burglars. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 AREA OR COUNTRY(S) App roved For R lease 2gATOVCIAi ORGANIZAr11164 lkif3Pt21 00499 ,,Rono7nnn1 n002-2 FUNCTIONS 6 TOPICS ""mw PERSONALITIES DOCUMENT HQ CIA Security White House Press McnoRD, james W. "Watergate" HUNT, Audio Operations E. Howard IDENTIFICATION OF DOCUMENT (author, form, addresseee, title 11, length) - File of press clippings concerning the "Watergate" incident of 17 June 1972. DATE1 18 Jun 1972 CLASS.. None NO t Locarloti, US/ITC-858 ABSTRACT Public knowledge concerning the arrest of five individuals for trespassing in the Democratic National Committee Headquarters. Two of .the individuals associated with the affair are retired CIA staff employees. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 ennu naanievt pervinut SATAI,..1111 o,Y,t111Aft, INP.ASILT Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 it Nework,Zimeo Ma9aiine Chief Newman, my coach, an American Indian, produced some very fine teams at that small, little college at Whittier. . . . There were no excuses for failure. He didn't feel sorry for you when you got knocked down. He had a different defini- tion of being a good loser. He said: "You know what a good loser is? It's somebody who hates to lose...." ?Richard M. Nixon, ta Pro Football Hall of Fame dinner, July .3(l, 1971. IN the raw winter of 1970, Richard Nixon looked like a loser. From balmy San Cle- mente and Key Biscayne: White House aides strove earnestly lo put the best possible face on the returns in that November's midterm elections. But back in Washington a consensus was hardening, like ice on the Mall's reflecting pool, that the election constituted a serious set- back for the President and an omi- nous portent for 1972. The G.O.P. did gain two seats in the Senate and lost only 12 in the 41 louse---less than the party in power generally does at midterm. But it also lost 11 governorships and some key state legislatures. Except for Tennessee, the ballyhooed Southern strategy failed to gain the Republicans any ground below the Mason-Dixon line. And they did badly in many of the largest states --- notably California, Ohio, Pennsylvania, Michigan, Texas and Florida ? where the 1972 election would almost cer- tainly be decided. When 28 Republican Governors and Gov- ernors-elect gathered that December among the snowy peaks of Sun Valley, Idaho, their standing joke was that they should have met at Death Valley. Gov. Edgar D. Whitcomb of Indiana, which gave Mr. Nixon his biggest majority in 1968, said the President was in trouble even there. Columnists Rowland Evans and Robert Novak wrote later: "In November, 1970, the Presi- The Story So Far By J. Anthony Lukas dency of Richard Nixon had hit bottom." The gloomy post-mortems that winter often focused on the Presi- dent's strident "law and order" cam- paigning, particularly his harsh Phoenix speech ("No band of vio- lent thugs is going to keep me from going out and speaking with the American people") rebroadcast on election eve -- only to be followed immediately by Senator Edmund Muskie, measured and calm in a Maine living room, asking the voters to repudiate the Republicans' "poli- tics of fear." Now, many Republi- cans felt the voters had done just that. Gov. David Cargo of New Mexico warned that his party had "lost the election because the strat- egy was completely negative." Publicly, the Southern White House stuck with its upbeat ap- praisal, but behind the palm fronds it began reassessing its strategy. A few days after the election, the Presi- dent met with his senior aides at Key Biscayne to?in one aide's words ?"go over the game films." Later that month, a smaller group, headed by Attorney General John Mitchell, closeted with him again. From this session emerged a unanimous conclusion: Nixon must drop his partisan image and henceforth be The President. Four days into the new year, Mr. Nixon publicly proclaimed his new persona in a televised interview with four network correspondents. -This is a non- campaign year," he told his interlocutors, "and now I am going to wear my hat as President of the United States." But if the President was to assume an air of statesmanlike high-mindedness for the next two years, then others would have to carry on the tough partisan brawl build- (Continued on Page 8) Approve ctiom ftEripaEorp OM/90 ENftwEgtopgitRRo0200010002-2 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 The story so far (cont.) log for '72. The two-tiered game plan called for a posture of unusual conciliation by the President and a stance of extra combativeness by his political operatives. In January, the President handed the chairman- ship of the Republican National Committee to Senator Robert Dole of Kansas, known for his hard-nosed partisanship. But nobody expected the real reins of the campaign to be held at the Na- tional Committee. "We knew we had a damn tough fight," one former Presidential aide recalls, "and we weren't going to entrust it to the bunch of cautious old hacks down at the committee." It was entrusted instead to the Committee for the Re-elec- tion of the President (CREEP), which in March,1971, opened its offices in a glass and steel tower at 1701 Pennsylvania Avenue. The CREEP offices?replete with deep orange pile carpeting, color-coordinated decor and new electric typewriters?were nothing if not conven- ient, barely 150 yards from the White House gates. It was an easy stroll for the brisk young men in double-knit suits who began shuttling back and forth across Lafayette Park that spring. A floor up - were the law offices of Murray Chotiner, one of merchandising?selling cosmetics to work his way the President's key political operatives, and right down the fourth-floor hallway from CREEP were the Washington offices of Mudge Rose Guthrie & Alexander, the Wall Street law firm which was alma mater to Richard Nixon and John Mitchell. Mitchell, who headed one faction jockeying for supremacy in the President's inner circle, initially placed one of his proteges, Harry S. Flemming, in charge of CREEP. But, in May, 1971, H. R. (Bob) Haldeman, the President's chief of staff, who headed the rival faction, countered by sending m er one of his own lieutenants, Jeb Stuart Magruder Soon he was running the committee. Named by his father, a Civil War buff, after the dashing Confederate cav- alry general, Magruder hardly cut a dashing fig- ure as a merchandiser of cosmetics, facial tissues and women's hosiery. The Magruder family had lived in Maryland since the 17th century, but young Jeb grew up in Staten Is- an early age, he was fascinated by land. From through Williams College and promoting Vicks cough medicines during the summer. With a busi- ness degree from the University of Chicago, he started with the Jewel Tea Company and eventually became president of two small companies in Califor- nia. Meanwhile, he faithfully put in his time as a I Republican worker, "coordinated Southern Califor- nia" for Nixon in 1968 and moved with him to Washington the next year?first as deputy director of communications, then as a special assistant. A self-styled "Nixonian Republican" who found him- self "in complete agreement with the President,' Magruder developed a reputation for loyalty. "He'll do what he's told to, maybe even to the point of sublimating his own judgment," says a former as- sociate. And he had an open, easy-going manner (riding his 10-speed bicycle to work, even showing up on Saturdays in a sport shirt) which helped him earn others' loyalty. One colleague recalls: "I per- formed things for Jeb I wouldn't have done for any- one else." There was a lot to do. As the spring wore on, it looked increasingly as though Nixon might indeed be a one-term President. In February, 197I., the Harris Poll showed Muskie leading Nixon 4:3 to 40. In March, it was 44 to 39. In May, 47 to 39. State of Siege All these things going on and we were powerless. --Justice Department official on radical unrest of 1969-71. Blf AY, 1971, was a time of tor- ment in Washington. After weeks of more orderly antiwar protests, the Mayday Tribe de- scended on the city determined to "stop the Government" with an unprecedented wave of civil disobedience and disruption. For days, the motley legion of young demonstrators blocked streets and bridges with automobiles, trash cans, lumber and their own bodies. The Government responded with new "get tough" tactics, flying in the National Guard and Marines to augment police, arresting some 13,500 demonstrators and holding them for hours in large outdoor stockades. As tear gas swirled around some of the nation's most revered shrines and demonstrators blocked entrances to major Govern- ment buildings, the capital was in a virtual state of siege. The events of that May fulfilled the worst fears of the men in the White House, fears that had been building for two years. As the Vietnam war dragged on and racial tensions persisted, the late sixties and early seventies were a period of nearly perpetual protest in America. Campus unrest, building through the decade, reached a peak in 1969-70 with nearly 1,800 demonstrations, many of them accompanied by bombings and other violence. The disorders reached a crescendo after the Cambodian invasion and the killing of six students at Kent State and Jackson State in May, 1970, with more than 440 colleges closed down Or otherwise disrupted. Meanwhile, sporadic gun battles were continuing in communities across the country between militant blacks and poli--e The President did his best to project an air of lofty disdain for such activities, letting word leak out that he had been watching football on TV during one march. But it now appears that he and the men around him were far more concerned, even desperate, than they let on. John Dean, former coun- sel to the President, says advance men for Presiden tial trips were instructed to insure that demonstra- tors remained "unseen and unheard" by the President and for that purpose Haldeman authorized "any means?legal or illegal." One day, the President looked out his window and saw a man (later identified as Monroe Cornish, a Maryland schoolteacher) with a 10-foot banner stretched out in front of Lafayette Park. Dean say,-; one of Haldeman's assistants told him of the Presi- dent's "displeasure" and Haldeman's decision that "the sign had to come down." Dean says he then ran into Dwight Chapin, the President's appoint ments secretary, who said he was going to get some "thugs" to remove the man. Instead, Dean called the Secret Service, who got the Park Police to convince the man that he should move across the park, where the sign would be out of the President's sight. The President's suspicion of critics and demon- strators was reinforced among his advisers. One official recalls a feeling at the White House then that "we were faced with one of the most serious domestic crises we've had." There is little doubt that in the superheated atmosphere of 1969-70, the President and the men around him perceived the unrest as a genuine threat to "national secu- rity." But, apparently, they felt another kind of security was at stake, too?the President's political security. During the October, 1969, antiwar moratorium, David Broder wrote a column in The Washington Post which said: "It is becoming more obvious with every passing day that the men and the move- ment that broke Lyndon B. Johnson's authority in 1968 are out to break Richard M. Nixon in 1969. The likelihood is great that they will succeed again. . ." According to a former White House aide, Broder's column was "read and discussed very thoroughly in the circles around the Presidenr, and had quite an impact. We took the warning very seriously." A Justice Department memo rein- forced this fear by contending that antiwar leaders had devised "a three-phase program designed to defeat President Nixon in the 1972 Presidential election." By 1969-70, the White House was increasingly pervaded by what one former Presidential aide calls the "us vs. them" outlook. "It didn't matter who you were or what ideological positions you took," the aide recalls. "You were either for us or against us, and if you were against us we were against you. It was real confrontational politics and there were a number of men around the White House who clearly relished that sort of thing.' One of those men was Charles (Chuck) Colson, the special counsel to the President. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 "If you've got 'ern by the ?, their hearts arid minds will follow," reads the Green Beret slogan over the bar in Chuck Colson's den. Colson is a "tough guy," who once served as the youngest company commander in the Marines and kept Marine poster in his of fice. A friend calls hi mm0010002-2 My father has never gotten over that," he says of the 1958 Meritor- ious Police Award he won for his seizure of contra- band weapons destined for Ireland. John Caul- field is an Irish cop. He comes, in his own words, "from a humble back- ground" in the Bronx. His basketball exploits at Rice High School won him a partial athletic schol- arship at Wake Forest, but he had to leave after two years for lack of money. Walking a patrol- man's beat in the early fifties, he helped uncover a robbery ring and won promotion to detective, serv- ing from 1955 to 1966 in the city's Bureau of Spe- cial Services and Investigations "monitoring the activities of terrorist organizations." Caulfield proudly tells of his role in arresting "the prime Castro agent" in the U.S.; the "bazooka attackers" at the United Nations, and the French Canadians who plotted to destroy the Washington Monument and the Statue of Liberty. During the 1960 Presi- dential campaign, he helped guard both candidates and got to know the Secret Service agent in charge of Nixon's detail. That led to a temporary job with Nixon's 1968 campaign and eventually to Ehrlich- man's call. Repository for secrets: A paper shredder in Washington, D.C. "a technician who enjoys combat" and combat has been his specialty in or outside the White House. 1,ong before he formed his "attack group" to besiege oemocratic candidates, he was on the attack: feeding damaging information on Senator Joseph rydings of Maryland to a Life reporter or orches- rating an attack on A.F.L.-C.I.O. president George meany as "sadly out of step" with the working Han. Colson prides himself on being in touch with .'ne working man, particularly the "hard hat" Ahnics whom he saw as the potential heart of the )resident's "new majority." Growing up in Massa- ?frusetts as an upwardly mobile middle-class -iankee, he deeply resented the Brahmin aristocracy Nhich ruled the Commonwealth. Granted a scholar- ;hip to Harvard and told by the dean of admissions I hat nobody had ever turned one down, he did :cist that and stamped off to Brown. Although he ince worked for Senator Leverett Saltonstall, a irahmin if ever there was one, his three heroes ire cut from a different mold: Lieut. (len. Lewis B. . c hesty) Puller ("the greatest blood and guts ma- ne ever walked"), John Wayne and Richard txon. John Dean says Colson played a major role in developing the Administration's "enemies list" (Colson says it was his former assistant, George Bell, now dead). This list, continually updated in a series of memoranda called "Opponents List, Po- litical Enemies Project," included several hundred persons, among them the presidents of Harvard, Yale and the Massachusetts Institute of Technology; Thomas J. Watson, board chairman of IBM; Julian Goodman, chief executive officer of the National Broadcasting Company; Robert McNamara, presi- dent of the World Bank; James Reston; Barbra Streisand; Steve McQueen and Joe Namath. To deal with such enemies, the White House needed some undercover operatives. So, in March, 1969, barely two months after the inauguration, John Ehrlichman, then counsel to the President, called John Caulfield, a New York City policeman, and asked him?according to Caulfield?whether he would set up "a private security entity in Washington for purposes of providing investigative support for the White House." Caulfield proposed instead that he join Ehrlichman's staff, and on April 8, 1969, he entered the White House. Caulfield brought with him another member of the New York Bureau of Special Services, Anthony T. Ulasewicz. Hired by Ehrlichman after a clandes- tine meeting at La Guardia Airport, Ulasewicz was not on the White House payroll but instead was paid $22,000 a year by Herbert Kalmbach, the President's private lawyer. But he worked for Caul- field and during the next few years the two ex-New York City cops kept busy on a variety of assign- ments. first from Ehrlichman and then, after July, 1970, from John Dean. If "as vs. them" was the White House battle plan, the first of the "them" may have been Senator Ed- ward Kennedy, then a favorite for the 1972 Demo- cratic nomination. According to Dean, Ulasewicz sped to Chappaquiddick within six hours after the body of Mary Jo Kopechne was pulled from the car driven by Senator Kennedy on July 18, 1969. Dean says Caulfield "posed as a newspaper reporter and always asked the most embarrassing questions at any press gathering." Senate sources say that soon afterward Caulfield and Ulasewicz had a wiretap installed on the phone in the Washington house Miss Kopechne had shared with three other girls. Dean says Caulfield was instructed to follow Ken- nedy during the Senator's 24-hour stopover in Hawaii in August, 1969 (his report uncovered a press conference and a tennis match, but no bar hopping). That fall, Dean says, Haldeman ordered "24-hour surveillance of Kennedy," but Dean talked him out of it. Another "enemy" investlgated was Dan Schorr, the C.B.S. newsman who had done some reporting the Administration resented. According to Dean, Haldeman ordered an F.B.I. investigation of Schorr. Later, when that was discovered, the Government said Schorr was being investigated as part of his consideration for a Presidential appointment. Schorr ("a real media enemy") was on a special 20-name version of the "enemies list" apparently selected for specific and immediate reprisals. Others on this short list included Edwin 0. Guth- man, national editor of The Los Angeles Times ("it is time to give him the message") and Maxwell Dane of Doyle Dane Bernbach ("they should be hit hard, starting with Dane"). What the White House had in mind is suggested in a memo from John Dean in which he shows "how we can use the available Federal machinery to screw our political enemies." Dean said that the "project coordinator" should "determine what sorts of dealings these in- Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 9 Siege (cont.) Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 dividuals have with the Federal Government and how we can best screw them (e.g., grant-avail- ability, Federal contracts, litigation, prosecution, etc.)." Finally, the coordinator should have "the full support of the top officials of the agency or de- partment in proceeding to deal with the individual." One agency from which the White House particu- larly wanted such cooperation was the Internal Revenue Service. Dean says the President specifi- cally urged "the use of the Internal Revenue Service to attack our enemies." As early as July, 1969, the White House began pressuring the I.R.S. Ultimately, the agency did set up a Special Service Group to move against left-wing organizations, but it was not moving fast enough for the White House. At ieast two audits were later made of the Admini- stration's "enemies": one of Harold J. Gibbons, a Teamsters Union vice president who, Colson com- plained, was "an all-out enemy," and the other of Robert W. Greene, a Newsday reporter, after Dean was told he should have "some tax problems" as a result of a series he wrote on Charles (Bebe) Re- bozo, one of the President's closest friends. If harassment of "enemies" was half of the White House strategy, then the other half was suc- cor for "friends." So Caulfield looked into I.R.S. tax audits on Billy Graham and Jahn Wayne?two Presidential friends ? and recommended that Wayne's be dropped; Colson and Rebozo sought to influence a U.S. Parole Board decision on a Jewish co-defendant of Jimmy Hoffa's in hopes of winning some Jewish votes. All the while, the White House kept talking in lofty terms of "national security." By early 1970, the President and the men around him seemed con- vinced that much of the domestic disorder was be- ing financed or fomented from abroad. Specifically, the White House held that Black Panther leaders were being covertly supported by Caribbean and North African countries; that blacks were getting insurgency training in North Korea; that the Weath- ermen and other radicals were being aided by various Communist regimes. The C.I.A. carefully examined these contentions and in two lengthy reports?submitted in 1969 and 1970?failed to find any supporting evidence. "We said the radicals were clean and that we couldn't find anything," recalls one official who worked on the studies. "We tried to show that the radical movements were homegrown, indigenous responses to perceived grievances and problems that had been growing for years." But the White House dis- counted these reports. In April, 1970, 29-year-old Tom Huston, then a White House staff assistant, started preparing studies looking toward a new domestic security program. Indiana is a stronghold of "libertarianism," that brand of intense individ- ualism which can serve as an ideological under- pinning for everything from freewheeling radi- calism to rigid conserva- tism. Tom Charles Huston of Logansport, hid., began as a Stevensonian Democrat, but in high school became a "Jeffersonian Republican" who admired Cato and John C. Calhoun and wished he had lived in the 18th century. At Indiana Uni- versity, where he gained bachelor's and law de- grees, he became national chairman of Young Americans for Freedom. In 1966, he endorsed Nix- on for President?a maverick move when many young conservatives preferred Ronald Reagan? thus earning himself a White House speechwriter's job in 1968. Beyond two years in Army intelligence, the tall, bespectacled Huston brought little experi- ence to his security jab. But he justified his role in terms of "libertarian" doctrines. "The real threat to internal security is repression. But repression is an inevitable result of disorder. Forced to choose between order and freedom, people will take order." Watergate door: Security guard Frank Wills noticed the tape and called the 10 Metropolitan Police. Huston confronted several obstacles which the White House believed were severely hampering do- mestic security and intelligence-gathering opera- tions. One was the F.B.I.'s discontinuance of its domestic espionage programs carried out against suspected foreign agents and some domestic radi- cals since the start of World War II. With the formal or tacit approval of successive Administra- tions, the bureau had burglarized suspects' homes and headquarters, tapped phones, bugged roams, read mail, infiltrated organizations and even black - mailed foreign diplomats. "The boys would do what they had to," recalls one F.B.I. man. "Arid if they got caught, Hoover would disavow them." But in 1966, according to President Nixon, J. Edgar Hoover, the F.B.I. director, had given orders to discontinue these "special programs." Then, in May, 1970, Hoover compounded the bureaucratic paralysis by cutting off all F.B.I. liaison with the C.I.A. The White House felt its defenses gravely weakened. "My God, we've got to do something about this," said one official. So, on June 5, 1970, the President called a meet- ing in his Oval Office attended by Hoover, Richard Helms, director of the C.I.A., Lieut. Gen. Donald V. Bennett, director of the Defense Intelligence Agency, and Adm. Noel Gayler, director of the National Security Agency. This committee, with Hoover as chairman, was instructed to come up with a plan to strengthen the Government's domestic intelli- gence gathering. A working group, with Tom Huston sitting in, deliberated for less than three weeks and on June 25 submitted a 43-page report. It called for (I) intensified electronic surveillance of both do- mestic security threats and foreign diplomats; (2) monitoring of American citizens using international communications facilities; (3) increased legal "mail coverage" (exterior examination to determine send- er, postmark, etc.) and relaxation of restrictions on illegal mail coverage (opening and reading); (4) more informants on college campuses; (5) lifting of restrictions on "surreptitious entry"; (6) establish- ment of an Interagency Group on Domestic Intelli- gence and Internal Security, with representatives from the White House, the F.B.I., the C.I.A.. the N.S.A., the D.I.A. and the three military counter- intelligence agencies. The report noted that some of the proposed steps were hazardous. Some risks it dismissed out of hand. The only argument against legal mail covers, for example, was said to be "Mr. Hoover's concern that the civil liberties people may become upse [and] this risk is surely an acceptable one." Of "surreptitious entry" it warned: "Use of this tech- nique is clearly illegal; it amounts to burglary. It is also highly risky and could result in great em- barrassment if exposed. However, it is also the most fruitful tool and can produce the type of intelli- gence which cannot be obtained in any other fashion." The President approved the committee's recom- mendations and on July 23 a "decision memo- randum" outlining the approved steps went to the agencies. The President has said the plan was "op- erational" for only five days. Huston says that on July 28 Haldeman told him to have the agencies return their copies of the memorandum, but that: it was never formally rescinded. According to the President. the obstacle again proved to be J. Edgar Hoover. Hoover had opposed many of the steps within the committee and recorded his objections in footnotes to the report. When the President overrode him, Hoover is said to have gone directly to John Mitchell, who got the memorandum with- drawn later that month. According to one official Hoover refused to go along with the plan unless the President gave him specific written approval tc. violate the law?which the President refused to do Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved Huston says Hoover's real objection was to any hoard overseeing or evaluating the way he ran the (and, indeed, that very month, he cut off remaining liaison with all other Federal agencies except the White House). Others say Hoover was afraid an F.B.I. agent would get caught in a grossly llegal act and thus blot the director's carefully guarded image. For a time after the intelligence plan was with- drawn, Huston lobbied vigorously for his baby. In an Aug. 5 memo to Haldeman, he wrote, "All of us are going to look damn silly in the eyes of Ims, Gayler, Bennett and the military chiefs if roover can unilaterally reverse a Presidential de- cision. ." But Hoover could and did. All Huston's af forts led only to the loss of his intelligence as- signment (his duties were transferred to John Dean) and his eventual resignation. Hoover's intransigence blocked efforts to gear up the domestic intelligence program for about six months. Then, in December, 1970, the White House tried again. It established an Intelligence Evaluation Committee composed of representatives of the White House, F.B.I., C.I.A., N.S.A., the Secret Service, and the Departments of Justice, Treasury and Defense. The group was supersecret and. For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 reporting directly to the White House, was lodged under strict security precautions in the Justice Department's Internal Security Division. According to the President, the committee was "instructed to improve coordination among the in- telligence community and to prepare evaluations and estimates of domestic intelligence." Among other things, it sought to predict the size of demon- strations and their potential for violence. "We were paper shufflers," says one Justice Department of- ficial who worked on the committee. "We didn't get into the operational side." But someone seems to have been operational out there. There have been repeated reports of burg- laries which fit the "surreptitious entry" section of the intelligence plan. Two defense lawyers and one defendant in the "Seattle 7" case have reported break-ins just before, during and after the Decem- ber, 1970, trial. Senate investigators have been told that Government agents were involved in other burglaries at defense offices during the trials of Philip Berrigan, the Chicago Weatherpeople and the "Detroit 13." An attorney for Scott Camil, an indicted member of Vietnam Veterans Against the War, says Camil's papers were stolen from her office on July 8, 1972. Gerald Lercourt, an attorney for many protesters, says his New York office was burned and burglarized several times between 1970 and 1972. These reports remain unverified and the perpetrators unidentified. Jeb Magruder, who was at the White House dur- ing this period, has suggested that the Administra- tion's willingness to engage in illegal acts was related directly to the illegality on the part of the radicals and antiwar demonstrators. For Magruder, the most telling exemplar was William Sloane Cof- fin, under whom he had studied ethics at Williams College "We saw continuing violations of the law by men like William Sloane Coffin. He tells me my ethics are bad. Yet he was indicted for criminal charges. He recommended on the Washington Monument grounds that students burn their draft cards and that we have mass demonstrations, shut down the city of Washington . . . we had become somewhat inured to using some activities that would help us in accomplishing what we thought was a cause, a legitimate cause." And thus, in May of 1971, as the Mayday Tribe was laying siege to the city, inside the White House men were preparing their own direct-action plans. Within a month, the President would feel impelled to set them in motion. Leaks, Leaks, Leaks I don't find wiretapping a particularly attractive procedure. I similarly don't find he leakage of documents a particularly attrac- live procedure. ?Henry Kissinger, news conference, May 23, 1973. 0 N the morning of June 13, 1971, the Sunday edition of The New York Times plunked down on door- steps along the East Coast bearing a laconic headline at the top of Page 1: "Vietnam Archive: Penta- gon Study Traces 3 Decades of Growing U.S. involvement." Inside were three more pages of -aeries and three pages of documents?the first installment of what were to become known as The Pentagon Papers." The President's early reaction to the Papers' publication was remarkably relaxed. He told Re- publican Congressional leaders at the White House he next Tuesday that since the massive Defense .1cpartment study of policymaking on Vietnam eovered a period ending in early 1968, it was far nore likely to embarrass former President John- ion and his aides than anybody in the Nixon Administration. But Sanford Ungar, in his book on the Papers dispute, reports: "A contrary at- itude was developing among key White House tdvisers, especially in the office of Henry Kis- i inger." According to Ungar, Kissinger argued that un- iindered publication of the papers could damage .wo sets of secret negotiations then under way: he highly sensitive feelers through Pakistan to irrange Kissinger's trip to Peking (which, in turn, was to pave the way for the President's visit and he historic rapprochement with China); and, sec- end, the secret negotiations which had then been going on for nearly two years with North Viet- namese officials in Paris seeking an end to the Vietnam war. Kissinger argued that the Chinese and the North Vietnamese might back out of these negotiations because they feared the United States could not be counted on to negotiate secretly and keep confidences with other nations. If these were the arguments being made to the President that week, it is unlikely that he needed much persuasion. For he had long been preoccu- pied with the need for Government secrecy, par- ticularly in the development and execution of foreign policy. And his deep distaste for news leaks had been aggravated less than four months after his inauguration. On May 9, 1969, The New York Times carried a front-page story by William Beecher, then its Pentagon correspondent, which began: "American B-52 bombers in recent weeks have raided several Vietcong and North Vietnamese supply dumps and base camps in Cambodia for the first time, according to Nixon Administration sources, but Cambodia has not made any protest." This story is said to have caused "dismay and outrage" at the White House. It was regarded, one official recalls, as "a serious security breach." Of course, the bombing was no secret to the Com- munist forces in Cambodia, or to the villagers on whom some of those bombs were falling. But the story was a severe embarrassment to the White House because it emphasized that Cambodian au- thorities were acquiescing in this expansion of the war, indeed "cooperating with American and South Vietnamese military men at the border, often giv- ing them information on Vietcong and North Viet- namese movements into South Vietnam." Officials feared that the story's publication would force the Sihanouk Government to curtail or even halt such cooperation. Suspicion for the Cambodian leak fell at least partly on Morton Halperin, a senior member of the Kissinger staff. Halperin fell under almost auto- matic suspicion as a Johnson "holdover" ?he had served as a Deputy Assistant Secretary of Defense in the Johnson Administration. Moreover, from the start he and some of the other young "liberals" on the Kissinger staff had been regarded with open hostility by ideological conservatives in Nix- on's inner circle. Finally, Kissinger recalls, there were other reasons to suspect a leak on the Na- tional Security Council staff. The Cambodia story, he says, "was not an isolated event: It capped a whole series of leaks, including those of detailed discussions of N.S.C. meetings on the Middle East and of other internal discussions." Kissinger told Halperin he was believed to be the source of the leak. "I told him I was not," Halperin recalls. But shortly thereafter a tap was placed on Halperin's phone at his home in the Maryland suburb of Bethesda. It remained there for more than a year, even after Halperin resigned from I hiv Security Council staff that September and became a relatively inactive consultant to Kissinger. The tap never produced any evidence againsT Halperin, although it did pick up several phone calls made by Daniel Ellsberg in late 1969 and early 1970, while he was a guest of the Hal- perins. (Later, Halperin and his wife, Ina, were to wonder just what had been overheard: their young sons?David, Mark and Gary?asking their friends out to play; anxious calls to New York about a relative's surgery; or perhaps those obscenities whispered by an unknown voice in the middle of the night.) Halperin was one of 13 Government officials whose phones were tapped beginning in May, 1969, the month of Beechees story. Most or all of the others were also members of Kissinger's National Security Council staff. Meanwhile, taps were placed on the phones of four newsmen suspected of receiving leaked material: Beecher; Hedrick Smith, a diplomatic correspondent of The New York Times; Henry Brandon of The (London) Sun- Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 I I Approved Leaks (cont.) For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 day Times, and Marvin Kalb of C.B.S. The taps on both officials and newsmen were maintained for varying periods: two for less than 30 days, one for as long as 21 months. Precise responsibility for the tapping is difficult to assess. Kissinger concedes that around the time of Beecher's Cambodian story he met several times with J. Edgar Hoover to express his "very great concern" that national-security information be fully safeguarded. He also concedes that his office supplied the names of White House staff members with access to classified information. He says he took no further part in initiating the taps. But Justice Department officials say Kissinger gave the F.B.I. the names of several staff members whom he wanted tapped. "The request came from Kissinger," said one official. "Henry wanted some of those guys bugged." Whoever initiated the request, the White House says that President Nixon personally authorized the 17 taps to protect "national security." Whether he was legally justified in doing so is still in dis- pute, and the answer will depend on a judicial determination of what "national security" means in these matters. The Federal Government has wiretapped for decades?beginning with Prohibi- tion bootleggers?but the first taps for "national- security" purposes came in 1940 when President Roosevelt ordered the F.B.I. to use them against the "Fifth Column," limiting its targets "insofar as possible to aliens." In 1946, Attorney General Tom Clark persuaded President Truman to broaden this category to include domestic subversives. Efforts to curb taps began in 1967, when the Supreme Court held that the practice came under the Fourth Amendment's stricture against unrea- sonable search and seizure, and thus required a court-ordered warrant. In 1968, Congress specifi- cally authorized law-enforcement officers to seek warrants in the fight against crime, notably gam- bling and the narcotics trade. But neither Court nor Congress limited the President's constitutional power "to protect national-security information against foreign intelligence activities." Then, in June, 1969, Attorney General Mitchell proclaimed an audacious doctrine. He claimed that these Pres- idential powers permitted wiretapping of any domestic group "which seeks to attack and sub- vert the Government by unlawful means." "This Attorney General may be as close to the President as Robert Ken- nedy was to Jack Ken- nedy," John Dean was told in 1969. The relations between John Mitchell and Richard Nixon may not have been quite fra- ternal, but the two men were as close as law part- ners ever get. Richard Whalen, a former Nixon aide, writes: "Mitchell was Number 1, tied to the White House by a di- rect telephone line, the uniquely intimate counse- lor to whom Nixon turned on every subject from minor political matters to Supreme Court appoint- ments." They first met in 1963, when Nixon began practicing law in New York with the firm of Nixon Mudge Rose Guthrie & Alexander. Mitchell was already one of Wall Street's most renowned band lawyers. In 1967, Nixon Mudge Rose absorbed Mitchell's firm and the two men practiced law and politics together until Nixon asked Mitchell to manage his 1968 Presidential campaign. As At- torney General, Mitchell took a tough line, calling for wiretaps, preventive detention, no-knock and stop-and-frisk laws. Some found him cold, even 12 ruthless, but his ebullient wife, Martha, called him j "a cute, cuddly, adorable fellow." In June, 1972, the Supreme Court rejected the Mitchell wiretap doctrine, holding that no such domestic group or individual could be tapped with- out a warrant. But the Court still did not touch the President's right to tap, without warrants, when the case involved foreign intelligence. Some officials therefore contend that the 1969 taps were legal because they were designed to prevent "national- security" information from falling into the hands of the press and then of foreign agents. Others are convinced that the Court would never construe the President's power that broadly, and thus argue that the 1969 taps were illegal from the start. The last of the 17 F.B.I. taps installed on news- men and N.S.C. staff members in 1969 were re- moved in February, 1971. "We found what we wanted to find out," one official says. "We found the people who were the weak links." At least three "blabbermouths" were eased out of their jabs. "There were a couple of guys who could have been prosecuted," the official says. "But we just let them go out of the Government." To have prosecuted them would have required the Government to reveal the existence of the taps. But these taps were so "sensitive" that some officials didn't want them even in the regular F.B.I. files. Eventually they were passed on to Robert Mardian, the Assistant Attorney General in charge of the Internal Security Division. Mardian says the President ordered him to deliver them to the White House, where they turned up eventu- ally in Ehrlichman's safe. The White House tapped at least one news- man's phone: that of the syndicated columnist Joseph Kraft. Dean says Caulfield told him the tap was ordered by Ehrlichman. According to another source, Caulfield asked Ehrlichman why he didn't get the F.B.I. to do it and Ehrlichman said, "The F.B.I.'s a sieve. Things get out that way." According to Dean, Caulfield said he plaeed the Kraft tap aided by Ulasewicz and John Ragan, a security consultant to the Republican National Committee, and recalled it as "a rather harrowing experience when he was holding the ladder in a back alley of Georgetown while also trying to If eep a lookout as another member of the group was working at the top of the ladder." The tap was apparently taken off several weeks later. "They had it another way," Ehrlichman is said to have commented. According to Evans and Novak, John Ehrlichman began his political career as an "espionage agent" for Richard Nixon. In 1960, he followed Nel- son Rockefeller's abortive campaign for the Repub- lican nomination, feeding reports back to the Nixon camp. He told a Seattle Times reporter of driving a Rockefeller car in the Governor's caravan through I North Dakota: "The Rockefeller people thought was from North Dakota and the North Dakota people thought I was from Rockefeller." Later, Evans and Novak say, Ehrlichman was sent as a [secret observer to the Democratic National Con- Disguise for a Plumber: "He was very eerie,' said Mrs. Beard's son, "with this huge red Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 wig on cockeyed." Approved 'rention, where he prepared a dossier on the Ken- T,etty campaign apparatus. Ehrlichman was brought ..ato the Nixon campaign that year by his class- mate and old friend from U.C.L.A., Bob Haldeman. After the 1960 loss, he went back to practicing land-use law in Seattle, worked briefly in the 1962 ampaign, then was the "tour director" of the 1968 campaign. His reputation for hard-nosed efficiency legendary. At the White House, Ehrlichman rved first as counsel to the President, then as the ; President's chief assistant for domestic affairs. A christian Scientist who neither smokes nor drinks, he became known as a cool executor of Presidential wishes. One colleague says: "He leaves no more lOood on the floor than he has to." For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 Meanwhile, the publication of the Pentagon Papers was setting off another security crackdown, this one even more stringent and wide-ranging than the hunt for the Cambodia leak. Colson re- calls that following the Papers' publication White House staffers held a series of "panic sessions." Several factors caused particular panic. One was the officials' fear that 31 of the 45 documents appearing in The Times had come not from the Pentagon Papers but from other secret Govern- ment sources. (They were wrong.) Another factor which contributed to the agitation at the White House that month was the knowledge that a copy of the Pentagon Papers had found its way into the hands of the Soviet Embassy only a few days after The Times began publication of the documents. According to Government sources, the papers were delivered to the embassy on June 16 by a man who handed over a letter signed with an alias. Within a few days, the White House be- came convinced?as the President recently put it ?that it was dealing with "a security leak of unprecedented proportions ... a threat so grave as to require extraordinary actions." In the first such action, the Justice Department went to court seek- ing "prior restraint" on continued publication of the Papers (on June 15 and 19, it got temporary re- straintng orders against The Times and The Post, but the Supreme Court permitted the newspapers to resume publication of the Papers on June 30). The Plumbers Anyone who opposes us, we'll destroy. its a matter of fact, anyone who doesn't sup- port us, we'll destroy. ?Egil Krogh Jr. in a 1969 conversation with Daniel X. Freedman, chairman of the psychiatry department, University of Chicago. SOMETIME in the spring of 1971, John Caulfield noticed that he and Tony Ulasewicz were getting fewer assign- ments. "For some reason," a former White House aide recalls, "it was decided that Caulfield couldn't handle the really heavy stuff." Within a week of the ventagon Papers' publication, the President author- 1,:ed another "extraordinary action": establishment vitt hin the White House of a Special Investigations t. nit whose task, as the President later put it, was "stop security leaks and to investigate other sonsitive security matters." In other words, "the heavy stuff." the President asked John Ehrlichman to super- vise the project, and in early July Ehrlichman a';signed 31-year-old Egil Krogh Jr., one of his :usistants, to head the unit. Many a noon these past few years, a lone figure in a gray sweatsuit might have been seen jogging around the Ellipse behind the White House. The runner was Egil (Bud) Krogh, who jogged five miles a day to keep in shape. Krogh maintains a similar regimen in the rest of his life. One ac- quaintance describes him as "a brisk, polite, dy- fuanic young executive?he had all the facts, he'd done his homework. Never mussed, never damp, absolutely spic and span." Others called him "straight as an arrow" and "a very spiritual guy" (like Ehrlichman and Haldeman, he is a Christian Scientist), and some liked to call him "evil Krogh," because he was so patently the opposite. Brought to the White House by Ehrlichman, with whom he served in a Seattle law firm, Krogh was as- signed to the staff of the President's Domestic Council, specializing in transportation and crime prevention. He was also the White House liaison man with the District of Columbia, seeking to create "a new psychological climate." Partly, that meant law and order, he said, "but it doesn't mean repression. We're trying to create a respect for authority, not necessarily for power." The Special Investigations Unit opened offices in Room 16 in the basement of the Executive Office Building next door to the White House. Krogh was assigned an associate?David Young, a 32-year-old lawyer from Kissinger's National Security Council staff?and a secretary, 23-year- old Kathleen Chenow. To insiders, the outfit was often known simply as "the Room 16 Project," but soon it acquired another nickname. Miss Chenow recalls: "David Young's mother-in-law or grand- mother or somebody saw in The New York Times that Krogh and Young were working on leaks. She called the story to his attention, saying, 'Your grandfather would be proud of you, working on leaks at the White House. He was a plumber.' So David put up a sign on the door which said, `Mr. Young?Plumber." ' New urgency was attached to the Plumbers' work as a result of several other developments that summer. One, Krogh recalls, was a report from the C.I.A. that a news story had "put in jeopardy the life of an intelligence agent." But by far the most important came on July 23 when William Beecher produced another of his annoy- ing scoops. This one began; "American negotiators have proposed to the Soviet Union an arms-con- trol agreement that would halt construction of both land-based missiles and missile submarines," and went on to spell out the American proposals at the U.S.-Soviet strategic arms limitation (SALT) talks under way in Helsinki. Author John New- house says the Beecher story stirred "rage" in the White House. The U.S. and the Russians had a firm agreement not to release details of their proposals to the press. Not only was Beecher's article full of such details, but it came out the morning before the U.S. delegation was to make its first presentation of the proposal to the Rus- sians in Helsinki. And, worse yet, it disclosed one of the American fallback positions. Nevertheless, some observers believe the Administration was more concerned about domestic considerations, fearing that the proposal would now become the subject of political pulls and counterpulls at home. In subsequent statements, White House officials have given the impression that this and other leaks were part of a plot orchestrated by the radical left and abetted by its allies in Government. But the known facts on the SALT leak do not support that premis. the precise identity of Beecher's source has never been revealed. But six Pentagon offi- cials were shifted out of their positions sup- posedly as a result of the leak. And the State Department asked three of its officials known to have talked to Beecher during this period to take lie-detector tests, administered by the C.I.A. in apparent violation of the statute that bars that agency from domestic operations. A State Depart- ment spokesman says the officials still occupy "positions of responsibility" at the department. Some believe Beecher's story came from Pentagon officials who sought to sabotage the SALT talks because they disapproved of any rapprochement with. the Soviets; others think it came from those who wanted to "freeze" the United States negoti- ating position. But it almost certainly came from Government officials with no current ties to Dan Ellsberg or the Weathermen. By then, it hardly mattered where It came from. That summer of '71, many men in the White House apparently felt events closing in on them, as if somehow all the people on their "enemies list" had joined hands to destroy them. In part, their fears involved national-security considerations. But plainly there were political considerations, too. By that summer, the President knew that he was going to be campaigning for re-election largely in Peking and Moscow. Any obstacles on his road to those two capitals also blocked his parallel campaign trail. Pori of the problem in succeeding months may ha ve been the inability of the President and the men around him adequately to distinguish be- tween those two thoroughfares. Egil Krogh recalls that, following the SALT leak, he and John Ehrlichman met with the President. Mr. Nixon instructed Krogh to move ahead with "the greatest urgency" to determine the source of those leaks. To meet the Pentagon Papers "crisis," the White House needed more operatives trained in security and intelligence. Chuck Colson, who was then working part-time on the problem, thought of a man whom he had first met five years before at a Brown University party and whom he had since come to know well. Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 13 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Plumbers (cont.) "We became lawless in a struggle for the rule of law ? semi-outlaws who risk their lives to put down the savagery of others," says Peter Ward, a C.I.A. agent in a hook called "Hazardous Duty" by David St. John?also known as John Baxter, Gordon Davis, Robert Dietrich and Howard Hunt. The 46 published novels Hunt has written under these names reflect the curious amalgam of luxuriant fantasy and actual skulduggery in the life of Everette Howard Hunt Jr. In part, his books are based on his own 20 years as a C.I.A. agent in Paris, Vienna, Mexico City, Madrid and Montevideo. As a specialist in "dirty tricks," he played an active role in the 1954 overthrow of the left-wing Guate- malan Government. In the early sixties, operating under the code name "Eduardo," he was the C.I.A.'s representative to the Cuban Revolutionary Council, in whose name the Bay of Pigs invasion was launched. Blocked from further promotions, Hunt retired from the agency In 1970 and joined Robert R. Mullen & Company, a Washington pub- lic-relations firm with strong ties to the conserva- tive wing of the Republican party. But he missed the C.I.A. desperately. "You see, our Government trains people like myself to do these things and do them successfully," he explained later. "It becomes a way of life for a person like me." So, in retire- ment, he lived out the riper reveries from his own books: French food, wine and the elegant life ("the service plates were Revere gadroon, the crystal was an opaline much favored by the Sun King's sycophants..."), exciting women ("Oh Jake," breathes the Senator's wife in "The Coven." "Oh, you bastard. You brutal goddamn woman killer"), and truly uninhibited espionage (the former C.I.A. agent in "The Berlin Ending" thinks the agency has "grown old and cautious. Prim. Reliant on tech- nology far more than human beings"). Colson says he passed Hunt's name along with several others to Ehrlichman, who interviewed him and ordered him hired. Ehrlichman says he met Hunt only once, on July 7, "the day after Charles Colson hired him." In any case, Hunt was hired July 6 as a $100-a-day White House consultant and given an office on the third floor of the Executive Office Building (although he retained his job at the Mullen company where he worked, among other things, on a television spot on disturbed children featuring Julie Nixon Eisenhower). Colson says Hunt was assigned to his staff for "internal budget" reasons only. But Hunt says he worked under Colson's direction for the next year on a wide variety of matters, most of which had nothing to do with the Pentagon Papers. First, he asked Colson to arrange cooperation from Hunt's old colleagues at the C.I.A. Colson concedes that he called Ehrlichman on July 7 and told him that Hunt wanted "to establish liaison with the C.I.A. as well as with other Government agencies." Marine Gen. Robert E. Cushman Jr., then the C.I.A.'s Deputy Director, says Ehrlichman called him that same day and said, in effect, "Here's Mr. Hunt; he works for us. He'll be around to see you." Cushman has said he assumed that Ehrlichman "spoke with the authority of the President." Ehrlichman says he doesn't have "the faintest recollection" of such a call. On July 22, Hunt visited Cushman in his office at the C.I.A.'s secluded Langley, Va., headquarters. The two men had known each other for years and once shared an office when Cushman had served previously with the agency. So when Hunt 14 came to see him, Cushman says, he knew him to be "a highly respected and honorably retired C.I.A. employe." According to Cushman, Hunt said he had "a very sensitive one-time interview that the White House wanted him to hold with a person whose ideology he was not sure of, and that he dare not reveal his [Hunt's] true identity.' There- fore, he would need a physical disguise and some false identification. The next day, a representative of the C.I.A.'s Technical Services Division called Hunt and in- structed him to come to a "safe house"? a clan- destine C.I.A. meeting place--on Massachusetts Avenue near the National Cathedral. There he was furnished with a wig, glasses and a speech-alter- ation device (a plate which fits into the mouth and alters the tone of the speaker's voice) as well as a Social Security card, a driver's license and sev- eral association membership cards in the name of Edward Joseph Warren. Those early summer months were a boom time for Senator Ted Kennedy. A Gallup Poll released on May 16 showed that 29 per cent of registered Democrats favored him for the 1972 nomination, with only 21 per cent for Edmund Muskie, the previous front runner. Rumors circulated in Wash- ington that the Kennedy clan was already gather- ing at Hyannis Port to chart campaign strategy. So the White House?which had earlier assigned Caul- field to dog his steps?once again began a Kennedy watch. But this time with a special intensity. Chuck Colson harbored an intense dislike of Kennedy (he has said that had he seen Kennedy after the Senator's 1970 denunciations of Nixon, "I might have attacked him physically"). And Hunt, who says Colson assigned him to follow the Kennedy trail, seems to have felt just as strongly. Hunt's latest book, "The Coven," features a Senator ?Newbold Vane?who is almost certainly patterned after one or all of the Kennedys. ("The Vanes were nonserious people who demanded to be taken seriously.... Their whole imperious life-style was preposterous. Vane was about as qualified to be President as I was to practice open heart surgery.") Later in the month, using the disguise furnished him by the C.I.A., he traveled to Providence, RI., where he met for two hours in a motel room with Clifton DeMotte, a General Services Administration employe who was also known to be a Kennedy watcher by avocation, having followed the family's activities closely ever since he worked in a Hyan- nis Port hotel in 1960. Hunt asked him about Chappaquiddick, about "any woman-chasing by the Kennedy boys; if I'd heard of any scandal-type material." DeMotte passed along some hearsay on "real swinging parties" and "booze" and some harder information on "hell-raising" by Kennedy staffers. But when Hunt asked him to do some research on Chappaquiddick, DeMotte turned him down, partly because Hunt refused to say whom he was working for. Hunt then turned his attention to the Pentagon Papers. But he was soon back to Kennedy. During much of July, he and others combed through the Papers, comparing them with the press accounts to see if the stories were accurate. Then, abruptly, he began to zero in on one phase of the vast history: late 1963, when the South Vietnamese generals were hatching a coup against President Ngo Dinh Diem which, the Papers showed, Presi- dent Kennedy knew of and approved. In August, the White House asked the State Department to provide classified cables exchanged between Washington and Saigon from April to November, 1963. At a news conference on Sept. 16, President Nixon said in answer to a question, "I would remind all concerned that the way we got into Vietnam was through overthrowing Diem and the complicity in the murder of Diem." A week later, Hunt went to the department's file record room and copied 240 cables from 1963. He says that Colson, who was "directing" his research on this matter, asked him soon afterward, "Well, what kind of material have you dug up in the files that would indicate Kennedy complicity?" Hunt says he showed Colson three or four legit mate cables "that indicated that they had prett! close to pulled the trigger against Premier Diem': head, hut it didn't say so in so many words.'" According to Hunt, Colson then said, "Do yo, think you could improve on -them?" Not without technical assistance, Hunt said. "Well, we won I be able to give you any technical help," Hurt recalls Colson saying. "This is too hot. See whit you can do on your own." Using a razor blade and a White House Xerox machine, Hunt pieced together two fakes. One, dated Oct. 29, 1963?three days before Diem's death?purported to be a State Department sage to the U.S. Embassy in Saigon. It began: "At highest level meeting today, decision reluc- tantly made that neither you or Harkins [Gen. Paul D. Harkins, then commander of United States forces in Vietnam] should intervene in behalf of Diem or Nhu [Ngo Dinh Nhu, President Diem s brother] in event they seek asylum." Several weeks later, Colson suggested to a friend?William Lambert, an investigative report( r for Life magazine?that he reread Nixon's Sep:. 16 news conference; then he sent him over to see Hunt's cable. "Mr. Lambert was quite exultant ove r the find," recalls Hunt, who let the reporter copy the cable. For many months, before Life magazir e folded in late 1972, Lambert was unable to satisfy himself about the cable's authenticity. Only in May, 1973, did Colson tell Lambert that the cab:e was a fake, although he said he had learned c' the fabrication in February, 1972. Colson emphai.- ically denies ordering Hunt to fabricate the cable, although he concedes that "it is entirely possible that Hunt misunderstood something I said to him at the time he was reviewing Pentagon Papers cables with me." By mid-August, Hunt had shifted over to the Plumbers squad (though still, he says? reporting to Colson). Meanwhile, another investigator hail been added to the squad--a man who had been fort.ed out of the Treasury Department only weeks. before, after he had vigorously lobbied agains t the Administration's gun-control legislation and had even delivered a rousing speech against such controls before the 100th-anniversary convention of the National Rifle Association. But all that wa s no disqualification for work with the Plumber:,. He was recommended by Egil Krogh and hired by Ehrlichman on July 19. G. Gordon Liddy loves guns. An F.B.I. man in the early sixties, he re- calls he once "bailed out of a moving car and OU :- drew" a most-wanted fugitive. As an assistant district attorney in Dutcli? ess County, N.Y., in tic mid - sixties, he rode around with a gun strapped to his shoulde and once, while summing up a robbery case la- the jury, he pulled a pistol out of his pocket and fired it at the ceiling. "Gordon's a cowboy," say s a former political rival. "He wanted to go back tn. the days when men were men and life wa s simpler." A former colleague in the District A:- torney's office says: "He could turn the mo:iti routine case into an earth-shattering event when, it bit the papers." (In 1966, Liddy took public credit. for a drug raid on Timothy Leary, which, according to a Poughkeepsie lawyer, "he had very little to do with.") In 1968, Liddy ran in a Republican primary against incumbent Congressman Hamilton Fish Jr Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 His campaign literature ("He knows the answer is law and order, not weak-kneed sociology. Gordon Liddy doesn't bail them out?he puts them in") featured a picture of him wielding a police spotlight at a crowd of angry blacks. Although he lost the primary, Liddy had the Conservative party nomina- eon. But he declined to run in the general election, and a few months later Congressman Fish recom- mended him for his job at Treasury. If Ted Kennedy was the first of the "them," by June, 1971, Daniel Ellsberg was a very close second. "Because of the extreme gravity of the situation, and not then knowing what additional secrets Mr. Ellsberg might disclose," the President recalls, he told Egil Krogh that "as a matter of first priority the [Special Investigations] unit should find out all it could about Mr. Ellsberg's associates and his motives." This separate investigation of Ellsberg?outside normal F.B.I. channels?was necessary, Krogh was informed, because Hoover was a close personal friend of Louis Marx, father of Ellsberg's second wife, Patricia. Marx and Hoover were indeed close friends, but the ultraconservative millionaire had little sympathy for his son-in-law's current activi- ties and refused to contribute money to his defense. In the early stages of the Plumbers' investiga- tion, Krogh recalls, he received "information sug- gesting that Dr. Ellsberg did not act alone." So the unit concentrated for a while on discovering whether the Papers' diselosure was "an individual act, the act of a small group, or the result of a wider conspiracy to engage in espionage," As part A this effort, the Plumbers were reportedly getting transcripts from a phone tap placed on Ellsberg's lome phone sometime in the spring of that year (the F.B.I. is said to have been investigating Ells- herg even before publication of the Pentagon Papers). But the Plumbers themselves apparently :nitiated wiretaps on two New York Times re- porters: Neil Sheehan, the reporter responsible for obtaining the Pentagon Papers, and Tad Szulc, who eovered the State Department. Another suspected conspirator was Mort Hal- oerin, the target of earlier F.B.I. taps. By about his time he had been elevated to the "top 20" of he enemies list with the notation "a scandal would he most helpful." Halperin, who had been in over- ell charge of the Pentagon Papers project, was then at the Brookings Institution, a private research institute staffed by many former Kennedy and Johnson Administration officials. According to John Dean, Caulfield told him that Chuck Colson had instructed him in June or July to burglarize an office at Brookings (said to be Halperin's) and seize any "leaked documents." Caulfield said Ula- --;ewicz had "cased" the institution and made friendly contact" with a security guard there. According to Dean, Caulfield told Colson that security at Brookings was "extremely tight," but Colson said that "if necessary he should plant a firebomb in the building and retrieve the docu- ments during the commotion that would ensue." Dean says he flew to California and persuaded Ehrlichman that the Brookings burglary was "in- sane." He says Ehrlichman phoned Colson to "call it off." Colson denies the whole story, although an associate says he may have suggested the bombing as a joke. Gradually, the Plumbers began zeroing in on Ellsberg himself. Hunt explains that there was "concern" in the White House about prosecuting Ellsberg for fear that he would become a martyr. Some officials pressed for information which would allow them to determine Ellsberg's "prosecuta- hility"?presumably not merely his role in pub- lishing the Papers but aspects of his background which would make him vulnerable. Ellsberg had been in psychoanalysis in Los Angeles, and Hunt iays the unit soon concluded that the best "instant source" would be the psychiatrist's files. Two F.B.I. agents visited the psychiatrist, Dr. Lewis J. Fielding, on July 20 in his office at 450 North Bedford Drive in Beverly Hills. Dr. Fielding, a slender man in his mid-50's with a shaved Yul Brynner-style head, recalls that the agents wanted to discuss Dr. Ellsberg. He said he would consult his attorney, and the next day the attorney called the F.B.I. and said his client would not violate the confidentiality of the doctor-patient relationship. Krogh recalls that when Dr. Fielding refused to cooperate, Ehrlichman gave the unit "a general authorization to engage in covert activity to ob- tain a psychological history" of Ellsberg. Hunt re- calls that about this time the idea of a burglary ?a "bag job"?on the psychiatrist's office became the topic of "low-key conversation around the office." Hunt says that at one point he inquired why the F.B.I. couldn't do the burglary and Liddy told him that in recent years the bureau had ceased training agents for that type of operation. "The agents had been reassigned or lost their skills." He said he then asked why the Secret Service couldn't do it and Liddy said the White House didn't trust them for that kind of job. Prosecutors are said to have a copy of a memo from Krogh and Young to Ehrlichman, dated some time before Sept. 3, which outlines in detail plans to burglarize Dr. Fielding's office. Young has testi- fied that Ehrlichman saw the memo and approved the burglary. Ehrlichman has refused to confirm or deny this. And John Dean says Krogh told him that orders for the burglary came "directly from the Oval Office." Hunt says those who approved the burglary made clear that "no one with any associa- tion with the White House could be involved in any way directly with such an operation. . . So I was asked whether or not, as a result of my old C.I.A. contacts, I could come up with a team capable of making such an entry." He immediately thought of an old friend, Ber- nard Barker, who?under the code name "Macho" ?had been his principal assistant in the Bay of Pigs operation. For the past decade, they had kept in touch only through an occasional letter. Then, on April 16, 1971, Hunt and his wife were in Miami for a reunion the next day of the Bay of Pigs veterans. Hunt stopped by Barker's house and pinned a note to his door, saying "if you are the sante Barker I once knew," he should contact Hunt at a Miami Beach hotel. A few hours later, Barker called and the two "freedom fighters" and their wives had lunch together in a Cuban restaurant and talUed about "old times." "I was not there to think. I was there to fol- low orders," Bernard Barker was to say later in describing his relation- ship with Hunt. For most of his life, Bernard Bar- ker has been following orders. Born of Ameri- can parents in Havana, he spent his youth alter- nating between schools in Cuba and the United States. As with so many sons of uncertain heritage, he became a fierce patriot. The day after Pearl Harbor, he went to the American Embassy and enlisted in the Army Air Corps?"the first volunteer in the Second World War from Cuba," he proudly proclaims. When his plane went down over Germany, Captain Barker spent 16 months as a prisoner of war. His sense of d scipline was reinforced by postwar service in the Cuban police force?during which he once served as a bodyguard for Mrs. Truman and her daughter, Margaret. Castro's seizure of power sent Barker into exile and several years of deter- mined resistance work?in the Bay of Pigs and other clandestine operations. Gradually he settled Watergate cash: Some of the' bills found on the men arrested in the burglary of D.N.C. headquarters. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 15 Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 Plumbers (cont.) i down to make money in Miaml, working as an assistant store manager, studying at night to get , a real-estate license, finally opening his own real- tor's office?Barker Associates?with a staff of 10 salesmen. , Four months after their Bay of Pigs reunion, Hunt flew to Miami again and spoke with his old comrade in arms. He asked, Barker recalls, "would I be willing to help him in a matter of national security?" Barker says Hunt contended that the "national-security organization" to which he then belonged was "above both the C.I.A. and the F.B.I." He was vague about the specific mission, saying only that it involved "a traitor to this coun- try who had given information to a foreign em- bassy." Barker eagerly signed on, believing that "Mr. Hunt's position in the White House would be a decisive factor at a later date for obtaining help in the liberation of Cuba." Hunt then asked him to recruit two others. Barker chose two of his own real-estate salesmen: Felipe DeDiego, 43, who Barker said had taken part in a successful raid to capture Castro Gov- ernment documents; and Eugenio R. Martinez, 48, whom Barker credits with "over 300 infiltrations into Castro Cuba." Late in August, Hunt got a Tessina camera concealed in a tobacco pouch from his C.I.A. con- tact and also arranged for Liddy to be outfitted with false identification and a disguise. On Aug. 25, Liddy and Hunt flew to Los Angeles for what Hunt called "a preliminary vulnerability and feasi- bility study." Wearing dark glasses, Liddy posed by some bright flowering bushes outside Dr. Field- ing's office building, while Hunt, using his photo- graphic tobacco pouch, snapped some pictures of the building, a nondescript three-story structure decorated with blue panels around the windows. Then they walked through the wood-paneled hall- ways to Fielding's office in Room 212, brushed through the open door and began snapping more pictures. Suddenly, Maria Martinez, the cleaning man's mother, entered the office. Hunt said calmly in Spanish, "I am a doctor." Mrs. Martinez seemed satisfied and left. That evening, Hunt called the C.I.A. and asked to be met when he and Liddy ar- rived the next day at Dulles Airport. There they handed a roll of film to an agent who got it de- veloped and returned it to Hunt that same evenir g On "D minus two" (Sept. 2), the two branches of the burglary team converged on Beverly Hil's Barker, Martinez and DeDiego flying directly frcm Miami to Los Angeles; Liddy and Hunt stopping off in Chicago to pick up several walkie-talkies and other equipment. On the morning of Sept. 3, the Miami men were briefed by Hunt and then made a "visual reconnaissance" of the target. At 9 P.M. that evening, two of them returned dressed in delivery men's uniforms and carrying a large green suitcase addressed to Dr. Fielding and marked with "Air-Express" and "Rush" stickers Efrain Martinez, the cleaning man, let them into Fielding's office where they placed the suitcase on the floor. A few minutes past midnight the team swung into action. Hunt stationed himself at Dr. Field- ing's residence to make sure the psychiatrist re- mained at home. Liddy cruised the area in a rented car looking for police, keeping in touch with the others over a walkie-talkie. Meanwhile, the three Miami men returned to the building. Using mask- ing tape and a glass cutter, they broke through a window on the ground floor and forced the door to Fielding's office. There they opened the green suitcase, which contained a 35-mm. camera, a spot- light and film. Barker pried open a wooden cabinet and a steel filing cabinet, strewing their contents around the office as he looked for information on Filsberg. Here the participants' testimony differs. Barker says they found nothing on Ellsberg except his name in one of the doctor's address books, but DeDiego says they did find Ellsberg's file, and that he held the contents while Martinez photographed them. In any case, by 4 A.M. all five men had re- turned to the Beverly Hilton. After their return to Washington, Hunt and Liddy showed Krogh pictures they had taken of Dr. Fielding's apartment and, apparently believing that the psychiatrist might be keeping some of Ells- bergs' records at home, recommended a burglary attempt there. Krogh says that Ehrlichman rejected the proposal. Ehrlichman says that as soon as he heard of the project he told Krogh and Young he "did not agree with this method of investigation" and they should "not do this again." Following the burglary, the White House appar- ently renewed a request to the C.I.A. for a "psycho- logical profile" of Ellsberg. Hunt says he knew the agency had a division that did behavioral profiles on world leaders?the most celebrated being the one of Nikita Khrushchev just before President Kennedy met him in Vienna in 1961. The agency had done only one such profile on an American? Capt. Lloyd Bucher of the Pueblo, after he and his crew were captured by the North Koreans in 1968. This, at least, had some direct relation to the C.I.A. mission abroad; but the request for an Ellsberg profile made the agency's two top medical men? Dr. John Tietjen and Dr. Bernard Malloy --"appre- hensive." They were overruled by their superiors, among them Director Richard Helms and General Cushman. A final profile on Ellsberg, incorporating classified information from the Justice and State Departments, was delivered to the White House on Nov. 12. Meanwhile, Hunt drew up his own report ?a 28-page chronology of Ellsberg's life, later found in Hunt's safe. The President has said that by the end of 1971 the Plumbers' work had "tapered off" and the unit had begun to disperse. Some of its members were "recalled" to action in January, 1972, when Jack Anderson began printing minutes of secret National Security Council discussions on the India-Pakistan war (later, Krogh sheepishly admitted to Ehrlich- man that they had "failed" to find Anderson's source). Hunt maintained a clandestine telephone in the Plumbers' office until March, 1972, for which bills were sent to Kathy Chenow's home and ap- proved by an aide to John Ehrlichman (the phone was used chiefly for calls to Bernard Barker in Miami, Miss Chenow says). But with the approach of the election year, most of the Plumbers were moving on to more overtly political activities. Dirty Money I have often thought we had too much money. ?Herbert Porter, testimony to Ervin Committee, June 7, 1973. FROM the top floor of Irvine Towers, where Herbert Kalmbach has his office, one can watch the sparkling white yachts bobbing in the Pacific along "Millionaire's Row" in New- port Beach, Calif. Within a sil- ver dollar's throw of the twin office towers, some 10 or 12 millionaires live in walled, well-guarded beachfront compounds, And many of those men belong to the Lincoln Club, an exclusive group of California businessmen that over the years has given vast sums of money to Richard Nixon? much of it funneled through the President's long- time personal lawyer, Herb Kalmbach. 16 By Jan. 28, 1971, Mr. Kalmbach had opened an account in the Newport Beach branch of the Bank of America, which has offices in Irvine Towers East. Over the next year or so, according to Gov- ernment sources, he maintained up to $500,000 in that account?many of the deposits coming in cashier's checks which he purchased with cash at a branch of the Security Pacific National Bank, whose office is in Irvine Towers West. Money was transferred back and forth between Irvine Towers East and Irvine Towers West in an apparent effort to blur its trail. Kalmbach was the chief fund raiser for the Nixon campaign until February, 1972, and thereafter sec- ond only to Maurice Stans. His secret fund, estab- lished at least two years before the election, set the tone for the financial side of the White House effort. Since Nixon en lered the White House in 1969, a remarkable change has come over the Los Ange- les law firm of Kalmbach. De Marco, Knapp & Chillingworth. It began to rise: from the eighth floor of Century City to the 19th floor of a down- town Los Angeles busi- ness center to the 44th floor of the city's newest skyscraper (Kalmbach keeps a separate office in Newport Beach). A similar change has come over the firm's clientele, which in 1968 included the likes of the local Newport National Bank and Pacific Lighting--and today includes such companies as United Air Lines, Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Rele s Marriott Corporation, Travelers Insurance and Music Corporation of America. The main attrac- tion dots not appear to be Kalmbach's legal wiz- ardry. William King, a former Nixon finance chair- man, says: "He [Kalmbach] isn't especially known for his practice of law." A Newport busi- nessman says, "If you have business with Wash- aigton and you want a lawyer, you can go to Herb, but you can't talk with him for less than $10,000." For years Kalmbach's career has benefited from political friendships. He was a college friend of Robert Finch, Nixon's longtime adviser. After heading the Orange County campaign in Finch's successful race for Lieutenant Governor in 1966, he served under Maurice Stans as associate finance chairman of the 1968 Nixon campaign. And he can often be seen at lunch with F. Donald Nixon, the President's brother, at a Newport Beach restaurant called The Quiet Woman. The precise source of Kalmbach's secret fund is unclear. Some of it may have been money left over from the 1968 campaign. Some of it may have been part of an estimated $3-million in covert money which?according to The Washington Star?Kalm- bach raised for Republican Senate candidates in 1970 and had distributed from the basement of a Washington town house. One thing is clear: Starting early in 1971, Kalm- bach was hard at work raising money from wealthy individuals and groups for the 1972 campaign. One of his first efforts focused on the dairy in- dustry, which early in the spring of 1971 had reason to be grateful to the Nixon Administration. In the first weeks of March, "after careful review of the situation and the provisions of law," Secretary of Agriculture Clifford Hardin pegged price supports for "manu- facturing milk" ? a basic grade used to make butter and cheese?at $4.66 a hundred pounds, the same as the previous year. The Secre- tary said raising supports might prompt overpro- duction, which would glut the market and pile up surpluses in Government warehouses. "This we must avoid," he said. On March 22, the Trust for Agricultural Political Education (TAPE), a dairy-industry political fund, donated a total of $10,000 to Republican committees. On March 23, President Nixon and Secretary Hardin met in the White House Cabinet Room with 16 dairy-industry leaders who urged them to reconsider the supports decision. On March 24, the Trust for Special Political Agricul- tural Community Education (SPACE), another dairy-industry fund, put $25,000 more into Re- publican committees. On March 25, Hardin an- nounced that the milk price supports would go up, after all, to $4.93 per 100 pounds. The dairymen proved very grateful indeed. TAPE, SPACE and other dairy groups contributed an estimated total of $422,500 to the Nixon re-election effort. (There may have been much more of this kind of thing. Senate investigators are looking into allegations that the Nixon campaign drew up a list of corporations "who had problems with the Government" in order to solicit funds from them. American Airlines has admitted it contributed $55,- 000 in company funds?a violation of election law? after the funds were solicited by Kalmbach. At the time, the Civil Aeronautics Board was considering American's proposed merger with Western Airlines, which it later rejected. Eastern Airlines and the Chrysler Corporation say they spurned similar solicitations.) By and large, the milk money did not go to the regular fund-raising committees, which were required by law to report their financial trans- actions. Instead, it went to some 100 com- mittees set up in the District of Columbia spe- cifically to receive the milk money without dis- closing its source. This took advantage of a loop- hole in the law, which required fund-raising cora- Approved For Rel SONGBIRD: 41/2" long, $87.50 ? CAT: 83/4" high, $195.00 STEUIBEN GLASS 715 FIFTH AVENUE, NEW YORK, N. Y. 10022 ? (212) 752-1441 CORNING GLASS CENTER, CORNING, NEW YORK 14830 ? (607) g62-1 060 Games of skill? Bridge players keep up with their game seven days a week in The Times. Chess players on Tuesday, Thursday and Sunday. And crossword buffs wouldn't miss the puzzles in The Times every day of the week. Whatever interests you goes along with "All the News That's Fit to Print:' Every day in DIjeNew Hark Elmo as 2001/09/04: CIA-RDP84-00499 0200010002-2 'ME NEW YORK TIMES MAGAZINE/JULY 22, 1973 17 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Money (cont.) mittees to register and report only if they were "organized for the purpose of influencing the out- come of the general election in two or more states." The committees, the Republican fund raisers rea- soned, operated only in the District and worked for the renomination, not the re-election, of the President. (Common Cause has since brought a legal challenge to this rationale, arguing that the law speaks not of operating but of influencing the outcome in two or more states, which the money would certainly do, and that the President was under no serious challenge from his opponents in the primaries?Representatives Paul McCloskey and John Ashbrook?so that, from the start, the money was raised for his re-election campaign.) The multiple committees had another purpose: to take advantage of a ruling by the Internal Rev- enue Service which provided that if a single donor distributed his contributions in increments of $3,000 or less,, the donor did not have to pay a gift tax. Such committees were hardly a Republican invention; they had become the common device of both parties to accommodate large contributors. The Republican committees were established in a great hurry during the spring and summer of 1971. One Republican recalls a man staying up late into the night just to think of names, some of which indeed show great ingenuity: Organization of Sen- sible Citizens, Americans United for Objective Re- porting, Supporters of the American Dream, Com- mittee for Political Integrity. The groups were purely paper organizations. The people listed as "chairmen" often knew little or nothing about them. The Organization of Involved Americans, for example, listed its address at the office of John Y. Merrell, a Washington attorney. Americans United for Political Awareness was listed at Merrell's home in Arlington, Va. He was chairman of one, his wife of the other, but Merrell couldn't remember which was which. The Merrells recall that they were asked to lend their names and addresses to the cause by Robert F. Bennett, president of Robert R. Mullen & Co., the public- relations firm which employed Howard Hunt. If the chairmen were sometimes unwitting in- nocents, the treasurers knew just what they were doing. In many cases, they were employes of the Union Trust Company of Washington?a bank with several leading Republicans on its board? where many of the committees deposited the funds that flowed in during 1971. But the dairymen's groups disrupted the Re- publican plans in one respect. Most of them re- ported their contributions to the Congress, as required. George L. Mehren, TAPE's treas- urer, recalls that Kalmbach "quite unequi- vocally" solicited such a contribution and then withdrew the request when he was told TAPE would report it. After newsmen uncovered the committees through such reports, the Repub- licans set up a whole series of new committees to accept other donations. And they continued to roll over the committee structure periodically until more than 450 had been formed. Meanwhile, the fund raisers were frantically try- ing to get contributions In before Congress passed a new campaign-finance law with more stringent reporting requirements. There had long been recog- nition of the need for a new law to replace the Federal Corrupt Practices Act of 1925, which Lyn- don Johnson once called "more loophole than law." But as the new bill moved through Congressional committees in the fall of 1971, Republican leaders (and some Democrats, too) were in no rush to get it passed. Clark MacGregor, then in charge of Congressional liaison for the White House, recalls a high-level meeting that fall at which Secretary of Commerce Maurice Stens argued that the bill 18 had to be "slowed down" to give Republican fund raisers "more time to raise money anonymously." MacGregor says Stans's position was supported at the meeting by Mitchell, Haldeman and Ehrlichman. The message, in turn, was relayed to the White House's friends in Congress. Although Congress sent the bill to the White House on Jan. 26, Nixon waited the full limit of 10 working days before he signed it on Feb. 7. In his statement that day, the President said the bill would "work to build public confidence in the in- tegrity of the electoral process." Since the bill did not take effect until 60 days after signing, the White House delay meant that the old loopholes would remain wide open until April 7. With this transition period artfully maneuvered into the very heart of the political giving season, the Republican fund raisers went all out to exploit it. On Jan. 12, 1972, Gordon Liddy, then general counsel to CREEP, sent a memo to John Dean which made the strategy clear: Seek maximum giving be- tween the last reporting date under the old law (March 10) and the effective date of the new one (April 7). Donors giving during this "gap" would not have to be identified, and they would be doubly protected if they gave to committees that went out of existence after the new law. To handle this tricky operation, the Republicans brought in their "first team." On March 1, John Mitchell resigned as Attorney General to officially take charge of CREEP. Stans had resigned his Com- merce post as of Feb. 15 and replaced Kalmbach as chairman of CREEP'S sister organization, the Fi- nance Committee to Re-elect the President. In that position, he crisscrossed the country beating the corporate-financial thickets for "pre-April 7" funds. On Feb. 28, he met 35 wealthy contributors at the Casino Restaurant in Chicago. On March 31, he met with Midwestern executives at the Olin Corpo- ration hunting and game preserve near Brighton, Ill. Maury' Stans undoubt- edly felt at home at the preserve, for he is an avid big-game hunter known as "the first American to bag a bongo in the Congo." To get his bongo ?a red-and-white-striped antelope?Stans, a Belgian plantation owner and 30 Congolese porters stalked through the bush for 10 days. When Stans's gunbearer fired too soon, the bongo charged, but Stans felled it with one shot. A later African safari caused him more trouble In 1966, while hunting in Chad, he shot a film of his experience which was later shown publicly. Its script, approved by Stans, referred to "boys" and "natives," and the film showed the white hunters giving an African his first cigarette and guffawing when he chewed it rather than smoked it. When a U.S.I.A. official denounced it as "an Amos 'n' Andy show," Stans took the film off the exhibition circuit. The future big-game hunter began life as the son of a Belgian immigrant housepainter in Shakopee, Minn. "We had very rough times." he recalls, "living on the credit of the corner store, v,hich my father worked off by painting the store." Starting as a stenographer in a sausage factory, young Stans Worked his way up through the ac- counting world to become a partner in a New York investment banking firm. (In 1960, he was elected to the Accounting Hall of Fame.) A fervent believer in the "Horatio Alger road to success," he lives with his wife in a luxury apartment building known as the Watergate. Stans's thicket-beating produced an enormous outpouring of anonymous contributions those last weeks. In one two-day period, Hugh Sloan, the Fi- nance Committee's treasurer, personally handled Plumbing tools: Tessina camera, tobacco pouch. about $6-million. Much of this last-minute money was in cash, the least traceable medium. The com- mittee had a squad of four to six "pickup men" roving around the country collecting the cash. But the flow was greater than they could handle. In one city, Sloan recalls, "we couldn't even pick up a $50,000 contribution." Sally Harmony, Gordon Liddy's secretary, recalls that the torrent of cash and checks those last few hours turned the com- mittee's office into a "madhouse." Some of the money didn't make the deadline at all. On April 10, Harry L. Sears, a former Republi- can majority leader of the New Jersey Senate, met Stans at his office and presented him with a worn brown attache case loosely packed with $200,000 in $100 bills. Stans put the money in the wall safe in his secretary's office. Later, he indicated to Hugh Sloan that the money was to be regarded as "pre- April 7 funds" because it had been "committed to us before that date." It evidently had been?in a series of conversa- tions between the donor, New Jersey financier Robert L. Vesco, and Republican officials, stretching back into the previous year. An indictment handed down later by a Federal grand jury charges that the $200,000 (plus a subsequent check for $50,000) was Vesco's attempt to buy his way out of a Securities and Exchange Commission Investigation into his "looting" of a mutual-fund complex. The indictment tells the following story: In mid- 1971, Sears, on Vesco's behalf, had asked Mitchell to speak with William J. Casey, then chairman of the S. E. C., about the investigation. On March 8, 1972, Vesco met with Stans and offered to contribute up to $500,000 to the Nixon campaign if Stans and Mitchell would help restrain the commission. Stans said $250,000 would suffice and later specified that it should be in cash. Four hours later, Sears finally got his meeting with Casey and G. Bradford Cook, then the S. E. C. counsel. Mitchell, Starts and Sears deny these charges. Some donors funneled their money through most circuitous channels. One was Robert H. Allen, a major Republican fund raiser in Texas and president of Gulf Resources and Chemical Corporation in Houston. At the time, a Gulf Resources mining sub- sidiary was under pressure from the Federal En- vironmental Protection Agency to correct water and air pollution in Idaho. A report of investiga- tofS, for the House Banking and Currency Com- mittee tells the following story: On April 3, $100,000 was withdrawn by telephone from the corporate account of Gulf Resources in the First National City Bank of Houston. (Allen insists this was his money, not the corporation's. Political contributions by corporations are illegal.) The money was transferred to the account of Compania de Asufre Veracruz (an "inactive" Gulf Resources subsidiary) in the Banco Internacional of Mexico City. The subsidiary turned the money over to Manuel Ogarrio Daguerre, the Mexican attorney for Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 Approved For Relea Gulf Resources, who is said to be dying of cancer. Ogarrio, or an associate, then converted $89,000 of the money into four cashier's checks for $15,000, $18,000, $24,000 and $32,000. On April 5, a young man with "a Mexican sur- name" arrived at the offices of the Pennzoil Cor- poration in the Houston Southwest Tower, which was then serving as a major collection point for Republican contributions in Texas and the South- west. The courier was ushered into the office of William Liedtke, president of Pennzoil and head of an ad hoc group of Texas fund raisers for the Presi- dent's re-election campaign. Also present was Roy Winchester, Pennzoil's vice president for public affairs and a member of the fund-raising group. The courier opened a large pouch and took out the four checks plus $11,000 in $100 bills. The agent asked for a receipt, but Winchester and Liedtke re- fused, explaining later to Investigators that "in the fund-raising business you don't deal in receipts." The $100,000 was placed in a suitcase along with $140,000 more in cash and $460,000 in checks and stock certificates. Winchester and Peter Mark, a "young and strong" Pennzoil employe designated to ride shotgun on the money, took the suitcase to the Houston airport where they boarded a wait- ing Pennzoil company plane (which, according to Congressional sources, may be the executive jet used in the James Bond movie "Goldfinger"). The plane flew to Washington's National Airport, where it landed about 9 P.M. Winchester and Mark took the suitcase immediately to the finance committee's office and handed it to Hugh Sloan. Four days later, another $25,000 trickled in. It (ame from Dwayne Andreas, a Minnesota soybean tycoon and long a Hubert Humphrey backer. Like many businessmen, Andreas seeks to maintain good relations with both parties. According to Stans, in January Andreas told his friend Kenneth Dahlberg, chairman of the Minnesota Committee to Re-elect the President, that he wanted to con- tribute to the Nixon campatgn. But Andreas did not hand the cash to Dahlberg until April 9. Two days later, Dahlberg gave a cashier's check to Stans, who gave it to Sloan. (On Aug. 22, Andreas, Dahlberg and three associates were granted a Federal bank charter. Of 424 charters granted in the previous five years, only 13 had been approved more quickly.) Hugh Sloan recalls that be and Stans talked about how to deal with the Mexican and Dahlberg checks. According to Sloan, Stans asked, "Do we have any problem in handling these?" and he replied, "1 don't know. I'll check with counsel." Counsel was Gordon Liddy, who, as Sloan recalls, recommended "a diversion to cash" and offered to "handle the transaction for me." On or around April 12, Sloan gave Liddy the five checks total- ling $114,000. On April 19, Bernard Barker walked into the Republic National Bank in Miami's "Little Havana" e 2001./ 0111000toiiiPilir4se me ma am ma m ma ma Ii Send this SUPER COUPON to get information about U a and its outstanding hotels! I a a a a a a 3 Aruba Information Center, 576 Fifth Ave., N.Y., N.Y. 10036 (or phone 575-8840) Tell me more about Aruba ...and the hotels I have chec ked below. 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Approved For Rel ase 2001/09/04 : Cik-RpuRA4-00499R00020001 rnE NEW YORK TIMES MAGAZINE/JULY 22, 1973 19 Aoney (cont.) Approved For Rel ,lection with the five checks ')ver the next three weeks, e converted them all to cash. a mid-May, Liddy gave Sloan money?minus $2,500 in explained "expenses." -Nhen the first phase of the 3.1-td-raising effort was corn- paged on April 7, the finance committee later reported, it had $10.2-million on hand. Ac- tually by that date, it had raised about $20-million. But it spent $5-million and "pre- spent" another $5-million (that is, paid out money for future campaign services so that it would not have to re- port the money). A few days before the April 7 deadline, for example, the committee gave $1-million to the Novem- ber Group, the advertising agency set up in New York to handle media work for the campaign. One reason for such prepayments, a Republi- can official says, was "to avoid looking like we had a lot of money, which would make further fund-raising dif- ficult." But the Republicans didn't have much difficulty raising more money. To the $20-mil- lion raised before April 7, they added about $35-million -- producing a total of about $55-million (including about $2-million carried over from 1968). It was, as Maurice Stans later proudly proclaimed, "the largest amount of money ever spent in a political campaign."' But all that money made some Republicans nervous. Even Stans, the master fund raiser, says now that he orig- inally thought the President could be re-elected for $25- or $30-million. He says he ob- jected to budgetary "over- kill" and once urged Halde- man, "Let's just run this cam- paign with less money." Those who worried about the money worried particular- ly about all the cash that flowed through the commit- tee's offices that spring. According to Hugh Sloan, about $1.7-million in cash came in up to April 7. Of that, he says, about $700,000 ultimately found its way into bank deposits. But for weeks and months, $1-million or so in crisp, freshly-minted $100 bills piled up in safes and deposit boxes. At first, much of it lay in a safe in the office of 31-year-old Hugh Sloan. When "Duke" Sloan was a student at the Hotchkiss School, the student elections were rigged by a clique of up- perclassrnen. Sloan told a teacher about it, and some of the conspirators were pun- ished. "That's the way he al- ways was," a Princeton class- mate says, "he stood for hon- esty and integrity and doing the right thing, no matter what." After dallying briefly with a diplomatic career, Sloan went to work for the Republican Congressional Campaign Committee. His earnest dedication brought steady promotions: assistant finance director for the 1968 campaign, personal aide to the President, assistant to Appointments Secretary Dwight Chapin. "It was great," he recalls. Sloan met his wife while she was work- ing as a White House assist- ant social secretary; they have a photograph showing them with the President on the day they were engaged. In May, 1970, during the Co- lumbia University disorders, the President sent Sloan to find out why he had a "prob- lem" with the academic com- munity. After talking with students holding Low Library, he emerged to say, "The depth of feeling is considerably stronger than I personally imagined," ? Although he was the fi- nance committee's second- ranking official, Hugh Sloan could be instructed to hand out cash by a whole panoply of Republicans: Kalmbach, Mitchell, Stans, Magruder, even Liddy and Porter, to whom Magruder had given blanket "drawing authority." And soon the demands for cash began. The first was in April, 1971, when he was told to give $25,000 in cash to Bob Hitt, executive assistant to Interior Secretary Rogers Mor- ton. He heard rumors that the money was to finance the Re- publican candidate in a special election for the Maryland Con- gressional seat vacated by Morton. In February, 1972, Ma- gruder himself asked for $20,000. Sloan went to his safe, and gavA015tdOttprisif R IE One of America's Largest Furniture Showrooms! SUMMER SALE REDUCTIONS FROM 10% TO 40% OPEN TODAY SUNDAY 'TIL 6:00 P.M. Sale?Sofa $399; Chair $165 Sale?Table, 4 side chairs, 2 arm chairs, buffet and hutch $688 Sale?Table and 4 chairs $549 ? Showroom Displays with thousands of designs ? Bedrooms, Dining and Living Rooms ? Great values through large scale buying ? Carpeting, Lighting, Accessories ? Special savings for unions, civil service and other groups , Sale?Contemporary Chair $189 ? Immediate delivery on many designs ? Finest furniture names ? Free Private Parking next to Showroom ? Master Charge/Bank Americard/G. E. Financing CARPETING ALSO ON SALE Detroit Furniture, 567 Flushing Avenue, Brooklyn, N.Y. Tel. 388-1900. Sale Hours: Mon., Wed., Thurs. 'Til 9:00 P.M.; ase 2001/09/04: CIA-FBI P.M. US .vaiNIIIIIM?NO?111Nows... aolgoosminelAMMINIONMIMMIIMINIII.111111M114.1i AM* Vine THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 21 At these stores & branches: Bloomingdale's, New York; Bamberger's, Newark; R. H. Stearns, Boston; The Hecht Co., Washington, D.C.; Higbee Co., Cleveland and other fine stores. counrrFAppseved For Release 2001 A DIVISION OF COUNTRY MISS, INC., 1407 BROADWAY, NEW YORK. 22 001/Clialikrettailitit00499R0i ? halciaanfirmed what .o Ad instructed without asking why he needed it. Magruder didn't volunteer the information. Between March, 1971, and April 7, 1972, Sloan gave Kalmbach cash adding up to $250,000. Starting in early 1972, Liddy drew $199,000 in cash from Sloan. At first he took it in relatively small batches, $10,000 or $15,000 at a time. Then around April 7, Sloan re- calls, Liddy came to him with a budget of $250,000. "He did not release it from his hand. He merely showed me the figure and said, 'I will be coming to you for substantial cash payments. The first will be for $83,000, and I would like to pick that up in a day or two.'" Sloan called Ma- him to way out the $83,000. Still disconcerted, Sloan went to S tans and said the single payment of $83,000 was "totally out of line with any- thing we had done before." Stans said he would check with Mitchell. A few days later, Sloan says, Stans told him he had talked with Mitchell who had said Sloan should take his orders from Magruder. With regard to the funds' purpose, Sloan recalls that Stans told him, "I do not want to know and you do not want to know." Late in March, Sloan recalls, Kalmbach told him that Haldeman wanted $350,- 0(10 in cash. He said Gordon Strachan, an assistant to Haldeman, would arrange to have the money picked up. Sloan says he put the 000 in a briefcase, whi?::11 left with his secretary. Ove? the lunch hour somebody? he presumes Strachan ? picked it up. The money is reported to have ended up in Haldeman's safe. Starting in December, 197' Herbert Porter drew ha tarts of cash that he ro-4:ii !s added up to $69,000 arid Sloan thinks totaled $P)0?000. In January, 1972, Sloaa re- calls he asked Porter 'chat one $15,000 withdrawa cas for. He says Porter r "I can't tell you. V-, are going to have to go r, my head if you want to fin,g1 out." Porter says he real iy vhdn't know much about Ar, i? the money 'was used for, ,cept that he'd been told finance "Dick it ?--type pranks and dlirty tric Dirty Tricks Haldeman: "You S.O.B., you started thls." Tuck: "Yeah, Bob, but you guys ran It Into the ground," ?Dick Tuck's report of an exchange between him and H. R. Haldeman in the Dirksen Senate Office Building, May 5, 1973. URING the 1962 California guber- natorial race, a beaming Richard Nixon posed in San Francisco's Chinatown with children holding campaign posters. Not until later did he learn that the Chinese charac- ters on the posters spelled out, "What about the Hughes loan?"?a reference to a dis- puted loan from multimillion- aire Howard Hughes. The Chinatown caper was the work of Dick Tuck, a Demo- crat whose name has since be- come something of a trade- mark for political mischief. Though wittier than many of his imitators, Tuck is by no means unique. In that very 1962 campaign, 500,000 Demo- crats throughout the state received postcards from a group called "The Committee for the Preservation of the Democratic Party." In the guise of an opinion poll, the cards asked whether Demo- crats were aware how their party?and their candidate, Gov. Pat Brown ? had fallen Ander the domination of the 'aiifornia Democratic Council, which the cards pictured as rirtually a Communist front. Iwo years later, Judge Byron Arnold found that the Com- mittee for the Preservation of the Democratic Party was act- ually a committee to enhance the political future of Richard Nixon and that the postcard poll, purporting to be a com- munication among concerned Democrats, was prepared under the supervision of H. R. Haldeman, Nixon's campaign manager, and "approved by Mr. Nixon personally." Even betore the 1970 re- turns upset the President's advisers, steps were appar- ently under way once again to insure Richard Nixon's politi- cal future. Convinced that a third-party candidacy by George Wallace would draw more votes from Nixon than from any potential Democratic opponent, the Nixon camp apparently set out to prevent Wallace from running. The Atlanta Constitution has re- ported that James D. Martin, the national Republican com- mitteeman from Alabama, calling himself the President's personal emissary, demanded that Wallace sign an agree- ment not to run in 1972 (Mar- tin has denied this). When Wallace insisted upon run- ning, Republicans reportedly poured $200,000 to $400,000 9I04: CIA-RDP84-00499R000200010002-2 of leftover 1968 funds int( Alabama to defeat Wallace in the closely contested 197(1 gubernatorial primary. Ac ? cording to John Dean, the expenditure was ;authorized by Herbert Kalmbach. But Wallace was renomi- nated and re-elected and scia 1 began touring the country ii preparation for another Presi- dential race under the banner of his American Independer t. Party. In early 1971, Robert .1, Walters, a Los Angeles adver- tising man, approached Jeb Magruder with a plan for re- ducing the A.I.P.'s registration enough to remove it from the California ballot. One of Wal- ters's former aides told The Washington Post that tie effort was approved by Jot n Mitchell. With $10?000 au plied by Hugh Sloan, Walten's canvassers?some of them from the American Nazi Par .y ?urged A.I.P. members to change their registration. (As late as May 15, 1912, when Arthur Bremer shot Wallace in Maryland, the White House was still seeki ag to siphon off Wallace vot??s. According to accounts of Howard Hunt's secret teqi- mony, within an hour of the shooting, Chuck Colson ast ed him to fly to MilwaukET, break into Bremer's apartmont and find evidence linking :he assassination attempt to kit- wing causes. Hunt says he persuaded Colson the break-in would be too risky. Colson denies the whole thing.) But Wallace was not the real enemy. Already in the of 1971, a formidable array of Democratic chal- ;engers had pitched tents on the 1972 battlefield: Kennedy, Muskie, Humphrey, McGovern, Somebody was needed to sow dissension within and among t lose camps. One of the men worrying about that was Dwight Chapin, the President's ppointmen ts secretary. hou En-lai was impressed. he 30-year-old advance man for the President's trip to China had handled all the details so efficiently that the Premier went out of his way congratulate him. Dwight chapin was the master detail man for Richard Nixon even before he reached the White House. In 1966 and 1968, he was "responsible for getting Nixon up in the morning, put- t.ng him to bed at night and !poking after his wardrobe, ineals and schedule." No ask was too small for Chap- the "superloyalist," who was proud to work for the rnan he was sure would be- come "the greatest President in history." (In 1968, author Joe McGinnis watched Chapin I clapping after Nixon answered each question during his taped commercials.) He be- Fan working for Nixon in 1962 ; while still an undergraduate ? at the University of Southern California. After that cam- paign, he went to work for U. R. Haldeman at the J. Wal- t..!r Thompson advertising agency and ever since he has been as loyal to Haldeman as tie is to Nixon. He is also close to another old Califor- ria friend, Ron Ziegler, the rresidential press secretary, , who says, "When we were young marrieds in California, they [Chapin and his wife Suziel were a lot of fun to po out with; he's a very hu- morous guy." They were all humorous lack in those days. U.S.C. in ihe early sixties was a light- I carted place devoted to ports, fraternity life, practi- al jokes and campus politics. Chapin andApoSid tbr Re friends belong to t e Squires and the Knights, hon- orary societies which guarded the U.S.C. Trojan Sword and otherwise upheld "Troy Tradi- tions." They also belonged to Trojans for a Representative Government, a group from the large fraternities that tried to oust a small fraternity clique from control of campus gov- ernment. U.S.C.'s relentlessly Republican politics produced a whole pep squad of Nixon aides including Chapin, Zieg- ler, Herbert Porter, Strachan, Tim Elbourne, one of Zieg- ler's assistants, and Mike Guhin, a member of Kissin- ger's staff?not to mention an older generation of Trojans: Herb Klein, Robert Finch and Herbert Kalmbach. And the politics could get rough. An alumnus recalls: "There were secret organizations that en- gaged in all kinds of espio- nage . . . one guy infiltrated another person's campaign for class president to the extent that he became the opposition guy's campaign manager. Needless to say, nothing ever quite went right." Newsweek says the Trojans for a Repre- sentative Government also ripped down opposition cam- paign posters, stole leaflets, stuffed ballot boxes and packed the student court in order to quash any complaints brought against them. So when Chapin began thinking of someone to head up the White House's "dirty tricks" squad for 1972 he naturally thought of a former Squire, Knight and Trojan for a Rep- resentative Government. In June, he got in touch with his old friend, Donald Segretti, a lawyer then serv- ing as a captain in the Judge Advocate General Corps at Fort Ord, near San Francisco. Earlier that month, Segretti had been in touch with Gor- don Strachan to ask about the possibility of a job in the executive branch. Chapin and Strachan discussed their old college chum and decided he would be perfect for what they called the "black ad- vance" program of spying and sabotage. In late June, they met with Segretti in Washing- ton, and told him they wanted a "Republican Dick Tuck" who would harass and confuse the Democrats without doing anything outright illegal. Ac- cording to Dean, Strachan then cleared all this with Haldeman and discussed sal- ary with Kalmbach. Segretti then met with Kalmbach at his Newport Beach office and agreed on $16,000 a year plus expenses. (Ia all, he received between $30,000 and $40,000 from Kalmbach, Dean says,) Within days, Segretti began Approved For Rel ea Pe9 mer Clearance ? 1.1.1 QN1/4,444?004.; _ ? \\N =44"*(4111.,911N... Malik , W77; 41 -"Pam."... ? - 'WNW' t ? ? IS111111111111ir WM". SEIOMMOD tqC. ;139.4?1=?1 - ? . ?.? MINI 1111 4, I aiffs??? annith,I.W ???? in 111:14- -\' _ tie-smgzmAtpuivitaitannt d'Att,1----iir1W7-11tara lararlazilitWeg wear- egn7a .re-wr %el " "atItrater0 Air Nir nu, Myr .11., Sealy and Simmons mattresses, hi-risers and Hide-A-Beds?reduced now through Saturday: You can have these famous name mattresses delivered immediately. Because klein sleep maintains the biggest bed ware- house in the city. So we dont have to waste time ordering from the manufacturer after you order from us. Well also set your bed up for you when we deliver it. Will anyone else promise you that? Simmons Ultra Pedie Orig. $99.99 now s 66.66 ea. Twin size mattress or box spring. The ultimate in sleeping comfort. Super firm yet has patented simflex for comfort and back support. Extra strong tempered coils. Wrapped in beautiful damask cover. Full size, now $76.66. Queen size (60' x 801 orig. $279.99, now $23999. King size (76' x 80') orig. $399.99, now $299.99. Our 15-year guarantee.' Simmons Adjusto Rest Innerspring Sale prices 42.00 ea. Twin size mattress. Buy the mattress and box spring set and pay $79.99. Innerspring mattress with hundreds of steel-tempered coils. Durable striped ticking. Extra firm for good support. Our 2-year guarantee.* Sealy Glamour Quilt' Orig. $69.99, now $48?00ea. Twin size mattress or box spring. Extra firm. Wrapped in beautiful dec- orator ticking. Handles for easy turning. Air vents for freshness. Full size, $58.00. Queen size orig. $199.99, now $149.99. Our 5-year guarantee!' Simmons Proper Posture' Orig. 589.99, nows 59.99. Twin or full size, mattress or box spring. Made especially for klein sleep. Very firm mattress wrapped in beautiful cover. Protective edge borders to prevent sagging. Queen size orig. $219.99, now $179.99. King size ong. $319.99, now $249.99 Our 0' year guarantee:* Simmons Hi-Riser $ Orig. $159.99 now 128.00. Two equal mattresses.. Deluxe automatic 30' hi-riser with 2 S,mmons mattresses. Opens to Queen size. All steel frame, extra firm mattress. Our 2- year guarantee.' Sealy super firm Hi-Riser Orig. $219.99, now s169.99. Two equal mattresses. AH steel sturdy frame. Big rug rollers. 33" hi-riser that opens to super Queen size. Our 15-vear guarantee:' Sealy deluxe innerspry9 Hi-Riser Orig. $249.99, now $199.99 ea. Two equal mattresses. Smooth innerspring extra firm 39" mattresses. Welded steel sturdy frame. Large rug wheels. A great space saver. Our 5-year guarantee." Convertibles and Hide-A-Beds Any Simmons Hide-A-Berfeither on our floor or in the Simmons catalogue is reduced by 10% to 30% off regular sale Prices. For example, a smart looking con- -emporory reg. $439.99, is now $29999. Choose tram contemporary, modern, traditional styles in hundreds of decorator fabrics. Luxurious velvets, easy-to care-for Herculons,suedes and vinyls. klein sleep The sensible place to buy a bed. 131 SIMMONS mono 60 . Isom 1160100...0 Manhattan: 140 E. 58th St., corner Lex. Ave., Daily 10 to 9, Sot. 10 to 6, 755-8210 Bronx: 120 E. Fordham Rd., across from Alexanders, Daily & Sat.10 to 9, 584-5500 Yonkers: 2357 Central Ave., opp. Gr. Eastern, Dly. 10 to 9, Sat. 10 to 6, (914) 779-4800 in Norwalk, Conn. : Rte. 7, 'A mi. N. of Pkv. Exit 40, Daily 10 to 9. Sat. 10 to 6, (203) 846-2233 Bergen- Rockland, Ramsey: Interstate Shopping Center, Rte. 17, Daily 10 to 9, Sot. 10 to 6, (201) 825-4477 Immediate Local Free Delivery.Set Up in Your Home.Saturday Deliveries Arranged.All bank credit cards welcome. akiimpkrKE, oiripw;,*? ike,{3,49ci90 is 011 Yructural fer ts when pt,r...used et 51 a u4V 11" 1, 7S74-.Art9S WW1 WONAMILASMIY14 ri4 -10,qe Klein Sleep rifE NEW YORK TIMES MAGAZINE/JULY 22, 1973 23 ? CIA-RbP84-00499 The most civilized hotel in New York. Maybe the world. ditagengz6Alet Park Avenue at 61st Street. New York, N.Y. 10021. (212) 759-4100 A WALLACE BROWN EXCLUSIVE CAME SEE US (Store firs: 9304:30, Mon-Fri) Trallaceltpm 21 ThE POUSliEd AlAbASTER OINIS Of VOLTERRA Simple in line, royal in his elegance is this wondrous sculptured owl from Italy's famous Alabaster quarries of Volterra, near Pisa. Hand-polished, sophisticated, magnificent, he regards you with infinite (but quixotic) wisdom. About 4" high in heavily marbled, luscious pearl grey, with black and yellow deep set eyes, he weighs a hefty seventeen ounces (paperweights anyone?) Very worldly in price, too.. .just $7.95. To be wise, surprise someone you love with a unique gift and save in the bargain.., so order two for only $14.95. Please add 500 to partially cover the postage and handling of each of your orders, which will be cheerfully refunded if you are not ecstatic about your Wallace Brown Alabaster Owls. MAIL NO RISK COUPON TODAY WALLACE BROWN, Dept. AV-76 39 Westmoreland Ave., White Plains, N.Y. 10606 Please send the following Alabaster Owls with complete money-back guarantee, if I am not absolutely delighted. L.] One for $7.95 0 Two for $14.95 Add 500 for postage and handling for each owl ordered. New York State residents please add appropriate sales tax. I enclose 0 Check for $ 0 Money Order for $ or charge my 9 Master Charge 0 BankAmericard LI American Express Card Number Exp Data Interbank (Master Charge only) SIgnature Name (please print) 5251 39 Westmoreland Ave Address Apt White Plains, N.Y. 10606 City State 7ip ..FIKIReksaseF ZOO 1419404. ;NCIAIRDRUZ 0(1492114afFoist.) using his accumulated leave time for mysterious trips around the country. On June 27, he came to Washington amt asked Alex B. Shipley, a Judge Advocate officer based there, if he wanted to engage in 'a little political espio- nage." According to Shipley, Segretti explained: "The Democrats have an ability to get back together after a knockdown, dragout cam- paign. What we want to do is wreak enough havoc so they can't" Segretti reportedly told Shipley that everything would have to be carried out in great secrecy and under assumed names but that "Nixon knows that something is .ieing done. It's a typical deal: Don't-tell-me-anything- and -1 - won't-know." Finally, Shioley says, Segretti "stressed what fun we could have," For example, he said later, they might set up a "Massachusetts Safe Driving Committee" and award a gold medal to Ted Kennedy. Ship- ley says he turned Segretti down then and on several other approaches. Segretti was discharged from the Army on Sept. 1. On Sept, 24, he flew to Portland, Ore , and checked into the Benson Hotel the night before President Nixon's party ar- rived there on the way to meet Emperor Hirohito in Alaska, Dean says Segretti met with Chapin there. Then in October, Segretti settled down in an adults-only apart- ment complex in Marina del Rey, a Los Angeles suburb that attracts mainly "swing- ing singles." In late 1971, a $6,000 white I Mercedes sports car replaced the aging Mustang in Segret- ti's reserved parking space. The tanned young veteran, whose neighbors thought he worked for a Los Angeles law firm, led the Southern Cal- ifornia version of the good life: bicycling around the marina, sailing, swimming, Sunday "open houses" with California red wile and hav- ing dates with several attrac- tive women. Segretti (whose name means "secrets" in 9 000200010002-2 Italian) projected an air of brisk confidence, but friends say he was sensitive about his size (5 feet 4 inches; 135 pounds). He was bright: After graduation from U.S.C. in 1963, he attended one of the nation's best law schools ? Boalt Hall at Berkeley ? then worked briefly for the Treasury Department in Wash- ington. And he was ambitious: A former girl friend says he was aiming for a job in the White House. "He would hate most being stowed away do- ing some monotonous, un- ' glamorous job," she says. "He was looking for excitement, ' challenge, big stakes." Having failed to sign up Shipley and other Army iaw- yers, Segretti turned his at- tention in late 1971 and early 1972 to young Republicans. Among those he contacted through the national "old boy" network of former col- lege Republicans were Thomas J. Visny, a 24-year-old aide to then-Governor Richard Ogilvie of Illinois, and Charles Svihlik, also 24, who had worked as an aide to several major Indiana Republicans. Accord- ing to Newsweek, Svihlik agreed "for the fun of it." Segretti told Svihlik that his objective was "to swing the convention to McGovern to literally destroy strong can- didates like Muskie." This may indeed have been the plan, but in the spring of 1971, when Chapin first approached Se- gretti, it was by no means clear that McGovern would run such a poor campaign. The "dirty tricks" effort may also be described as an at- tempt to knock off the front runner at any given time. In the summer arid fail of 1971, a series of strange in- cidents bedeviled the Muskie camp. A poll of New jersey voters disappeared during the night from the desk of Anna Navarro, the Senator's polling expert. A Harris Poll denigrat- ing Senator Kennedy was sent out to other members of Congress in Muskie envelopes. On Dec? 12, Evans and Novak published portions of a confidential Muskie campaign memo. Herbert Porter has testified that 35-mm. film strips containing this and other documents were turned over to him by Jeb Magruder and that Magruder later in- structed him to send typed copies to Evans and Novak. Porter said he does riot know the source of the documents, but Senate investigators have focused their attention on a retired Maryland cab driver who shuttled documents back and forth between Muskie's Holiday Inn Aruba offers you the best of Aruba. 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Avocado 7 Oils by se 211310gaziailiserP134--00 Senate office and his down- town campaign headquarters during a five-month period in late 1971 and early 1972. In February, 1972, New Hampshire voters received phone calls at night, often after midnight, from repre- sentatives of the "Harlem for Muskie Committee" who, in plainly "black" accents, prom- ised Muskie would deliver "full justice for black people." Then on Feb. 24---less than two weeks before the New Hampshire primary ? came the clincher. On that day, The Manchester Union-Leader published a letter from a "Paul Morrison" of Deerfield Beach, Fla., which said that Muskie, campaigning in Flor- ida, had been asked what he knew about blacks. "He didn't have any in Maine a man with the Senator said. No blacks, but we have Cannocks [sic]. What did he mean? We asked ?Mr. Muskie laughed and said come to New England and see." Inspired by the let- ter, the paper ran a front- page editorial headlined "Sen. Muskie Insults Franco-Ameri- cans." Two days later, Muskie wept while speaking in front of the Union-Leader office. (Paul Morrison has never been found. Months later, Marilyn Berger of The Washington Post wrote that Kenneth Clawson, deputy director of communications at the White House, told her, "I wrote the letter." Clawson says, "I know nothing about it.") Although Segretti was in Manchester at least once?on Nov. 18, 1971?the has not been linked directly to any of these incidents. But he had been busy elsewhere. On Dec. 15, Robert Benz of Tampa, Fla., a 24-year-old former president of the Hillsborough County Young Republicans, received a phone call from a "Donald Simmons" who said 3 oz only he wanted someone to work $3.75 on a "voter research pro- ject." Later that day, over draft beer at a local Motel, Simmons [Segretti] told Benz he wanted to place people in the headquarters of several Democratic candidates, start- ing with the "front runner," Muskie, but including Jackson and Humphrey. He wanted in- formation which would allow them to "screw up" the Demo- crats' campaigns. As coordinator of these ac- tivities, Segretti said, Benz would get $150 a week and could hire others at $75. In the weeks that followed, Benz hired at least seven assistants. He One got a job in Muskie 's Howard 1343AANg Or ReleaSTea516611Mbrt.tbeMbfrg4-00499R000206010002-2 The triumphant result of years of research, this combination moisturizer, skin cleanser, night oil, skin softener, under make-up, and a beautifier for extra-dry areas like elbows and heels, is a secret, delicately balanced blend Df 7 of the world's most replenishing oils. Safflower, Sesame, Sunflower, Peanut, Olive, Wheat Germ and AVOCADO. It's 100% pure, natural and organic. 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These incidents began at- tracting attention. Sometime in February, Gordon Strachan got a phone call from Gordon Liddy, who by that time had transferred to CREEP as gen- eral counsel and intelligence operator. Liddy said, in effect, "Something screwy is going on out in the field," and Strachan said, "We've got a guy out there." When Liddy demanded some coordination, Strachan gave Liddy Segretti's phone number, then called Segretti and told him that Liddy would get in touch with him. Instead Liddy turned the matter over to his fellow "plumber" Howard Hunt, who by then was working with CREEP. A week or so before, Jeb Magruder recalls, he got a phone call from an assistant to Chuck Colson. "He indi- cated that Mr. Hunt had com- pleted his assignments at the White House and since we were now involved in intelli- gence actiN ities, he thought I would find Mr. Hunt was very valuable," Magruder says, "I had only met Mr. Hunt once, so I was not really quite sure ,n what terms he would be valuable. So I indi- cated . . . that he should refer Mr. Hunt to Mr. Liddy." Over the next, few months, Hunt called Segretti from time to A yacht cruise becomes &floating nightmare in Bimi? ? Run time?in what a friend de scribes as "a whispery, con- spiratorial voice" ? to give him ideas or instructions. Meanwhile, Hunt was re- cruiting other operatives. In early February, he spoke with Robert Bennett Fletcher, a nephew of the man who ran the Mullen company. Accord- ing to Fletcher? Hunt asked him if he had any Repubhcan friends who might be inter- ested in infiltrating Demo- cratic campaigns. Fletcher recommended Tom Gregory, a friend from New Jersey then studying at Brigham Young University in Provo, Utah. On Hunt's instructions, Gregory went to the Muskie headquarters at 1910 K Street, volunteered his services and was assigned to the Foreign Policy Section where he began work on March 1. During the next several weeks, Gregory fed Hunt information on Muskie's scheduling, the cam- paign organization, dissension in the ranks and?when he could get them ? advance texts of Muskie speeches. He and Hunt would meet every Friday at a Drug Fair at 17th and K Streets, where Gregory would hand over an envelope containing the information he had typed up and Hunt would give him an envelope contain- ing his weekly salary ? $175 in cash. (At Liddy's in- structions, an office was leased adjacent to Muskie headquarters, as a monitoring post for bugs to be placed next door. But the bugs were never installed.) Still another "dirty tricks" operation was under way at this time?under the super- vision of Jeb Magruder, with funds paid out by Bart Porter, frequently carried out through the CREEP Youth Division, with ideas reportedly conceived by Chuck Colson. According to one CREEP of cial, Colson's role aroused some friction. The official re- calls Magruder saying, "That goddamn Colson, he just sits there and dreams up this crap!" The projects carried out were varied and imaginative. Porter dispatched Roger Stone, the head of the District of Columbia Young Republicans, to New Hampshire to make a contribution to the McCloskey campaign on behalf of the Gay Liberation Front. (At the last moment, he balked at identi- fying himself as a homosexual and made the contribution in- stead in the name of the Young Socialist Alliance.) Ted Brill, the 20-year-old chair- man of the College Republi- cans at George Washington University, was paid $750 for six weeks in May and June, 1972, to join a group of Quakers carrying on a peace vigil in front of the White House. He was told to pass himself off as a member of the peace movement and find out "what the radicals were up to." At Magruder's instigation, Porter also recruited under- cover agents under the code name "Sedan Chair," a name Porter remembered from a Marine Corps exercise in which he once took part. "Sedan Chair I" was a young Californian named Roger Greaves. Over several months, Greaves was paid some $3,800 to recruit hostile pickets against Democratic candidates in California and perform vari- ous other "dirty tricks" in New Hampshire and Florida. EANWHILE Segretti was still hard at work. In early March, he met Benz at a Tampa shopping center and showed him an olive green Army ammunition cannister containing two or three small vials.. In the vials were a clear liquid with an evil smell. Benz gave the vials to George Hear- ing, a 40-year-old accountant whom he had hired earlier. According to Benz, Hearing scattered the liquid on the grounds around the Mary Help of Christians Church where a Muskie picnic was scheduled and tossed some more through a broken window at Muskie headquarters in Tampa. In early March, the Gov- ernment says, Benz received a packet from Segretti con- taining about 200 pieces of "Citizens for Muskie' station- ery and envelopes plus a typewritten letter. Benz says he gave the letter and sta- tionery to Hearing and told him to mail the letter to a list of Jackson supporters. On March 11?three days be- fore the Florida primary?the letters were mailed out. They alleged that Senator Jackson, while a high sdhool senior in Everett, Washington, in 1929, had become involved with a 17-year-old girl and fathered an illegitimate child,. It also charged that the had been arrested twice on homosexual charges in Washington?on May 5, 1955, and Oct. 17, 1957. The letter also said that Sena tor Humphrey had been arrested for drunk driving in Washington, D.C., on Dec. 3, 1967, after hitting two cars and a mailbox and that in the car was a "well-known call- girl" who had been paid by a lumber lobbyist to entertain the Senator. (Senators Jack- son and Humphrey have denied these allegations and there is nothing to substan- tiate At* rdweef cin Re:Pause files.) In late March, Benz t.nd Segretti went to Milwaukee, where the Wisconsin primary was scheduled for April 4. There they printed up a fake Humphrey press release an- nouncing free food and drink, "balloons for the kiddies" and speeches by Mrs. Martin Luther King and Lorne Greene, and passed them out in the black neighborhoods of Milwaukee. They also ordered several dozen flowers, 50 pizzas, 50 buckets of fried chicken and two limousines in the name of George Mitch- ell, Muskie's advance man, and had them sent to Mus- kie's hotel. Three weeks later in Washington, some strikingly similar tactics pestered the Muskie forces. On April 17, Muskie threw a fund-raising dinner for 1,300 people at the Washington Hilton. That day, a $300 supply of liquor, a $50 floral arrangement, 200 piz- zas, some pastries and even two magicians from the Vir- gin Islands arrived unordered. Then, the Embassy of Niger called to say that the charg? d'affaires was coming and asking when the limousine would pick him up. "We hadn't invited anybody from foreign embassies," Madalyn Albright, the dinner's organiz- er, told The Washington Star- News. "This was an internal thing for Democrats, but you can't offend foreign dignitar- ies, so we said come ahead, but that there would be no limousine. . . . The evening started out with a small V.I.P. cocktail party. I was there when I saw a couple arriving. They were dressed in batik, so I went up and said, 'You must be the charg?rom Niger.' But it wasn't. He said he was the Ambassador from Kenya. Upstairs, we got a call that the Ambassador from Afghanistan was arriving. Fi- nally, 16 ambassadors showed up, all from African and Middle Eastern countries. Since this was a seated din- ner, it caused us a little bit of pain trying to seat them without causing embarrass- ment. . . . Later on we dis- covered that they had all come in rented limousines. We were presented with the bill for the limousines." Several weeks later, the White House proved it could create "support" for the President, as skillfully as it could create trouble for the Democrats. 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The Gestetner _3utomatic duplicating method lets you print practi- cally anything?even continuous lone photographs -with a crisp, clean, professional look In any of 19 colors, or any combination. On your choice of paper sizes, weights and colors. Beautiful. You never even mastered your old-fashioned inimeograph? Gestetner makes masters electroni- cally. Turns out copies automatically?at the rate of 6000 an hour. Anyone can do it, without smudg- ing a finger. For about the same as your old mimeo costs. You don't believe it? Ask your printer. Or mail the coupon and we'll prove it. Gestetner Gestetner Park, Yonkers, N.Y. 10703 n Please send details and proof. D Show me. I'd like to see a demonstration in my own office. Name Organization Address City Nv-7 25 State Zip Approved ase 2001/09/04: CIA-RDP84-00499R000200010002-2 Tricks (cont.) aroused widespread protest around the nation. The White House was alarmed. "We felt the Haiphong decision could make or break the President," a former Nixon campaign offi- cial explained later. So White House and CREEP staffers swung into action. On May 10, less than two days after the President's an- nouncement, Ziegler an- nounced that telegrams and phone calls were running five or six to one in favor of the President's action. Many, if not most, of these messages were the result of hurried phone calls by Nixon aides to offices of such organizations as the American Legion and the Veterans of Foreign Wars, which in turn relayed the re- quest to rank and file mem- bers. At the same time, CREEP sent 2,000 to 4,000 phony ballots in to a poll conducted by television sta- tion WTTG in Washington (the station final count showed 5,157 for the Presi- dent's action and 1,158 against). James Dooly, the former head of CREEP'S mail room, recalls that "work ground to a halt in the press office while everybody filled out 15 postcards. Ten people worked for several days buy- ing different kinds of stamps and postcards and getting different handwriting to fake the responses." One of the protests against the President's action was an editorial in The New York Times of May 10 which said the mining was "counter to the will and conscience of a large segment of the Ameri- can people." A week later, an ad appeared in The Times en- titled, "The People vs. The New York Times," It cited polls showing that anywhere from 59 per cent to 76 per cent of the people supported the President. The ad was signed by 14 people and ap- peared tc represent citizen support for the President. But, according to The Washing- ton Post, officials of the No- vember Group, the special New York organization which handled ad vertising for Nixon, conceded that the ad was originated and written by Chuck Colson, It was placed by the November Group and paid for with 44 $100 bills sent up by Bart Porter. After TV! uskie's defeat in several spring primaries, at- tention began to turn to the two remaining favorites?Mc- Govern and Humphrey. In mid-April, Hunt told Tom Gregory to switch his volun- teer duties over to McGovern headquarters at 410 First Street, S.E. In addition to the kinds of information he had wanted on Muskie, Hunt asked Gregory to provide de- tailed layouts of the offices of Gary Hart and Frank Man- kiewicz, McGovern's two cam- paign managers. And some- time in late spring, Roger Stone reportedly hired Mi- chael Mc:Minoway, a Louis- ville, Ky., private detective, and dubbed him "Sedan Chair II." Soon, the exotically named informant had obtained a job in the Humphrey campaign and was ;ending reports through Stone to CREEP. In May, activities began to center on California where a showdown was developing between McGovern and Hum- phrey. On oi about May 19, a letter went out on the sta- tionery of Eugene McCarthy's campaign asking McCarthy delegates to support Hum- phrey in the primary. The letter was signed with the name of Barbara Barron, a member of the California Committee for McCarthy. Ms. Barron charges that the letter was a forgery sent out by Seg- retti. Meanwhile, in Los Angeles, Donald Segretti sign- ed up to work for McGovern, even volunteering to join a bicycle parade. And in early June, the focus turned to the Democratic National Convention in Miami. Michael McMinoway got a job as a security guard in the Doral Hotel where McGovern was staying. According to Time magazine, Chuck Col- son began recruiting young men to pose as Gay Libera- tionists and wear large George McGovern buttons at the con- vention (Colson denies this). Pablo Fernandez, a former C.I.A. operative in South America, says Eugenio Mar- tinez asked him to recruit 10 persons to masquerade as "hippies" and descend on Mc- Govern's headquarters during the convention. There, Fer- nandez said, Martinez wanted the hippies to throw rocks, break glass, defecate and urinate in public "and all that sort of thing, to give the voters a bad impression of people supporting McGovern." The plan fell through. And one day, Robert Reisner recalls, Gordon Liddy burst into his office saying, "I have this great idea!" The great idea, Reisner says, was to have "a woman who would have disrobed at the Democrat- ic National Convention." Gordon Liddy had some other great ideas, too. recitk-In Any old retired man in the New York City Police Department who would have become involved in a thing like that . . he would not have walked in with an army, that is for sure. ?Anthony Ulasewicz, testimony to Ervin Committee, May 23, 1973. ETiRED New York City policeman John Caulfield had a plan. He called it "Sand Wedge," Through the summer of 1971, he lobbied for it with John Dean and other White House officials: a private investigat- ing firm that would be funded by corporations and would work for the NI xon campaign. For Release 2001/09/04 CIA-RDP84-00499R000200010002-2 To be called Security Consult- ing Group, Inc., it would have "overt" offices in Washington and Chicago and a "covert" operation based in New York. But Sand Wedge died a-born- ing. Dean says John Mitchell decided instead to centralize the intelligence - gathering function Linder a general counsel at CREEP and, at Egil Krogh's suggestion, selected Itreak-in front.) Gordon Liddy for the post. On Nov. 24, Dean says, Mitchell saw Caulfield, putting him off with a temporary assignment to follow Representative Paul McCloskey, then met with Liddy. On Dec. 12, Magruder says, he met for the first time vvith Liddy, who told him that White House officials had talked with him about "a broad - gauged intelligence plan." He also said he had been promised $1-million to carry it out. Magruder told him that "a million-dollar budget was a sizable budget and that he should prepare the background documents necessary to justify this bud- get and that he would then have an opportunity to pre- sent the budget to the At- torney General." Shortly afterwards, Liddy met another man who had been brought into CREEP that . same fall by Caulfield. He was James W. McCord Jr., who bAlifilE0YElfilifilrnPetWasfq??sVcCA134pioWiFir 8i-00499 RQ00200010002-2 s a emo-1 N:ion atter they both joined coordinator" for the commit- tee on Oct. 1 and full-time on Jan. 1. At the same time, his firm ? McCord Associates Inc.?was given a to provide "security for the Republican Committee. contract services" National In the spring of 1971, Mont- gomery College in Rockville, Md., offered a course called Criminal Justice 234, Indus- trial and Retail Security, de- scribed in the catalogue as "introduction to historical, philosophical and legal basis of government and industrial cratic society." (Before taking: the course, students were re- quired to take C.J. 102, Ad- ministration of Justice). The instructor in Criminal Justice 234 was James McCord, who became a teacher and "securi- ty consultant" in 1970 after' 26 years in Government serv- ice, seven with the F.B.I., 19 with the C.I.A. After joining the C.I.A. in 1951, he is re- ported to have played a role in the Bay of Pigs operation. 'Men he became "chief of security," with responsibility for guarding the agency's headquarters and other facili- ties. L. Fletcher Prouty, author of a book on the agency, recalls being intro- duced to McCord by Allen Dulles, then the C.I.A. Direc- tor, as "my top man." On re- tirement, he was given the Distinguished Service Award for "outstanding perform- ance." Since then he had spent half a day each week at the Rockville United Methodist Church running a "social fel- lowship" for older members. .J.. CREEL, Liddy and McCord began meeting in the halls and around the water cooler. At first they chatted about the dangers posed by demon- strations at the Republican National Convention in San Diego. "Well, what is the lat- est estimate?" "What is the latest you read in the papers about it?" Once Liddy said he expected 250,000 demonstra- tors. Later, he upped that to 500,000, He seemed very worried. Soon Liddy began question- ing McCord about "listening devices." McCord regarded this as 'a normal professional interest . . to find out what was the state of the art." But gradually, as he began ques- tioning McCord about the ca- pacity and cost of specific bugging devices, "it became apparent that Liddy had an interest in several areas of in. telligenr e -gathering pertain- ing to the Democratic party and the Democratic conven- tion." In mid-January, Liddy distinctive and unusual CHRISTMAS CARDS from The Metropolitan Museum of Art The new catalogue of the famous Museum Christmas cards ? an unparalleled selection of paintings, drawings, goldsmiths' work, stained glass, sculpture, textiles, and graphics. -t:C The more than one hundred unusual Mu- seum Christmas presents include exact copies of ancient jewelry in gold and silver, sculpture, rare early American gla ss, pewter, porcelain, needlework, small medieval bells in silver and pure gold, an Egyptian Magic wall calendar, and the new engagement calendar, Gardens: East te West. The cards are priced from 10 to 35 cents the Christmas presents start at $2.95. 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There Was a summary chart totaling up all the activities and the budget, which came to $1-million. Jeb Magruder recalls 0112 meeting vividly. With Mitchell, Magruder and Dean gathered in chairs before him, Liddy launched into a well-prepared, 30-minute "show and tell" Live 3,000 years in one week. Any Friday through October 26th, take the brand-new M.S. Aquarius back to the golden age in the Greek Isles. Have you ever been where the Greek gods spent their vacations? The M.S. Aquarius will take you there. To Santorini, Crete, Rhodes, Kusadasi, .sianbul, Pat mos and Mykonos. By night, there is a mauve velvet nightclub, and a buf- fet that would make Bacchus green with envy. By day, there is the golden sun and the Aegean. You'll see the Palace of King Minos at Knossos (which is almost a fantasy). You'll see the Temple of Diana at Ephesus (which is one of the seven won- ders). In one week, you'll see ancient places where men ? have paid tribute to beauty by Creating more of it. We leave every week from Piraeus, through October, and throughout the winte - )ri longer cruises. Prices range from $336 to $508.* Go with J. e Because where we're going, we can add 3,000 years tc your life. See your travel agent or French Line, Inc. 'Dosed on tiooble at< oponcv and 0,o.lob.1,,to The M S Aquoriu, Is a Gre..1, Rego,try The M.S. Aquarius is owned and operated by Hellenic Mediterranean Lines. Represented in North America by French Line, Inc. 555 Fifth Avenue, New York, New York 10017. 212-883-7096/97. 2001/09/04: CIA-RDP84-00499R000200010002-2 THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 29 Fhe great new look from Sweden is here. Shown are two from a won- derful, colorful collection to use in many ways and many places throughout your home. Come see them all and be dazzled. Catalog $1. M2000? Folding sling in yellow, orange, green or brown canvas with matching upholstered headrest and lacquered frame. $45.00 Stuns Chair ? 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(Rte. 206) EVENING STORE HOURS: Park Ave. gi Cambridge stores Open Thursday until 8 PM. Brooklyn, Thursday until 7 PM. Philadelphia, Wednesday until 8 PM. ? 30 ?Approved-for Re! Immo& fitojw84-oo4p4ofizoorptimcdr-12, t oug Mitchell does not, a dis- cussion of several specific targets. One was the office of Hank Greenspun, publisher of The Las Vegas Sun. Ac- cording to Magruder, Mitchell or Dean said there was in- formation on Senator Muskie in Mr. Greenspun's office. McCord has said that it in- volved "blackmail type infor- mation involving a Demo- cratic candidate for Presi- dent." But Greenspun says the only thing in his files remotely resembling this is data on a 1965 conviction of Senator Muskie and then- Senator Eugene McCarthy for hunting ducks on a Federal reservation. Greenspun thinks the real target was a batch of hand - scrawled memos from Howard Hughes to his former assistant, Robert Maheu, that had come into Green spun' s possession. Jack Anderson reports they in- clude one of March 14, 1968, instructing Maheu to go to Nixon and help him win the Presidency "under our spon- sorship and supervision." McCord says the burglary plan provided that "the entry team would go directly to an airport near Las Vegas where a Howard Hughes plane would be etanding by to fly the team chrectly into a Cen- tral American country." Ap- parently tic burglary never took place. Magruder says (and Mitchell denies) that the Feb. 4 meet- ing also discussed bugging the Democratic headquarters to be established during the Miami convention at the Fontainebleau Hotel, as well as the headquarters of the Democratic Presidential can- didate after his selection. But the main target was the Democratic National Commit- tee's headquarters in Wash- ington, and particularly the office of the committee's chairman, Larry O'Brien. Ma- gruder says the White House regarded O'Brien as the Dem- ocrats' "most professional political operator" and feared that if he remained chairman he could be "very difficult in the coming campaign." Thus, he says, they were looking for "information that might dis- credit him." presentation. Pointing to vari- ous charts as he went along, he outlined plans for elec- tronic surveillance and pho- tography of documents. He discussed plans for abducting leaders of radical groups scheduled to demonstrate at the Republican convention, "detaining them in a place like Mexico and then return- ing them to this country at the end of the convention." And he talked of another plan for a yacht off Miami Beach, "set up for sound and photo- graphs," in which call girls would try to extract informa- tion from Democratic offi- cials. Liddy said the girls would be "high class, the best in the business," Dean recalls. Dean also says Liddy pro- posed "mugging squads" that would "rough up" demonstra- tors. During the presentation, Dean recalls, John Mitchell gave him a wink. When Liddy concluded, Magruder says, "we were all appalled. The scope and size of the project was something that at least in my mind was not envi- sioned. Mr. Mitchell, in an understated way, indicated this was not an acceptable project. He indicated that Liddy should go back to the drawing boards and come up with a more realistic plan." Mitchell has since described the plan as "beyond the pale." As Dean and Magruder left the building with him, Liddy seemed "discouraged." But he apparently regained his con- fidence quickly. A few days later, Liddy told McCord that he had talked with John Dean and that Dean said that things "looked good" for the plan, but that "some means would have to be found for denia- bility for Mr. Mitchell" and that "a method of funding should be arranged so that the funds would not come through the regular commit- tee." About this time, Liddy asked McCord whether he would be willing to join an operation to bug Democratic headquarters if it was ap- proved, and McCord, im- pressed by the high-level names being bandied about, readily agreed. During the next few days, Liddy revised his plan, dis- carding the abduction scheme and the call girls. Instead, he focused on wiretapping and photography. He pre- pared a new budget that this time totaled $500,000. All this, Magruder says, was pre- sented to Mitchell, Dean and himself, at a second meeting in the Attorney General's of- Specifically, Magruder re- calls, he got a call early that year from Kevin Phillips, the syndicated columnist who had been a special assistant to John Mitchell in 1969-70. Phillips told him that O'Brien might be implicated in a "kickback" scheme involving a commercial exposition at the convention. The plan was offered to both the Republi- cans and the Democrats by aSPIOth )6 FdAIRD P 84-0 ovatehik6tRtCRJOsioV11262t he Columbia Exposition Compa- ny of New York. It called for an Exposition of the American Economy to be held simul- taneously with each conven- tion. Participating companies would purchase booths and the proceeds would be divid- ed, 80 per cent for the party and 20 per cent for Columbia ?an arrangement that Scott describes as quite standard for such expositions. The plan was turned down by both parties. But Phillips's report greatly interested CREEP. Liddy was dispatched to Miami to "take a look at the situation." Ma- gruder says Liddy persuaded a businessman friend to call Richard Murphy, the Demo- crats' convention manager, to confirm the exposition plan. The Feb. 4 meeting ended equivocally. Although some progress had been made, the Liddy plan still did not have Mitchell's approval. Accord- ing to Magruder, Mitchell "didn't feel comfortable" with it even at the $500,000 level and indicated he wanted Lid- dy to cut it still further. Mitchell says he rejected the plan altogether. Dean says that after that meeting, he sought out Haldeman and told him what Liddy had pro- posed, calling it "incredible, unnecessary and unwise." Dean says Haldeman agreed and told him to have no more to do with it. Haldeman does not recall this conversation. Magruder says part of the impetus to "discredit" Larry O'Brien was his "effective" exploitation of "the I.T.T. situ- ation"?an apparent reference to the developing scandal over the Justice Department's favorable settlement of anti- trust actions against the In- ternational Telephone & Tele- graph Corporation. Very little had surfaced publicly about this at the time, although O'Brien had sent a letter to Mitchell on Dec. 9 asking some embarrassing questions about it. But three weeks later, the scandal blew wide open when Jack Anderson published a memorandum, allegedly writ- ten by Dita Beard, a Washing- ton lobbyist for I.T.T.,-indicat- ing that the Justice Depart- ment had settled the suit after I.T.T. pledged $400,000 for the Republican convention in San Diego. O'Brien promptly turned the disclosure against Richard Kleindienst, whom the President had appointed Attorney General to replace John Mitchell, and the Senate Judiciary Committee reopened hearings on Kleindienst's nomination. Early in March, Mrs. Beard disappeared for several days and turned up in the Rocky Break-in front.) Mountain Osteopathic Hospi- tal in Denver, allegedly suffer- ing from a heart condition. Newsweek has reported that Gordon Liddy "spirited" her out of Washington and took her to Denver. Chuck Colson concedes that several days later he sent Howard Hunt off to Denver to "inter- view" Mrs. Beard about the authenticity of her memo. Others suggest that Hunt's mission was to persuade her to deny writing it. On March 17, several days after Hunt's \resit, Mrs. Beard's lawyer did issue a statement in her name branding the memo a "for- gery," But what struck Mrs. Beard's son, Robert, about the Hunt visit was the outlandish disguise the White House agent wore. "He was very eerie," Robert recalls, "with this huge red wig on cockeyed, like he put it on in a dark car." Hunt was champing at the hit, eager to get into some real espionage. He began making more frequent trips to see Barker in Miami. On one trip, Hunt told Barker he would soon have a mission for him. "Get your men in training going up and down 104. "T.laey must2oZlicrielv(P4OP Piore tainebleau and the nominee's be giga9A-?trcgeMP" Y66 e. x0Paggleit9gAiNagialQ1tnyi21get was But by then something- probably the Kleindienst hear- ings-was stalling the opera- tion. Magruder recalls that one evening he got a phone call from Colson asking him to "get off the stick and get the budget approved for Lid- dy's plans; that we needed in- formation, particularly on Mr. O'Brien." Colson, who has denied advance knowledge of the operation, says he remem- bers only an evening when his secretary came in and said, "Howard Hunt has got to see you; for just two minutes, but he's got to see you." Hunt strode in with Liddy and urged Colson to intervene on their behalf, Colson recalls calling Magruder and saying, "Gordon Liddy's upset. He's trying to get started on an intelligence operation and he can't seem to see anybody." According to Colson, Magru- der replied: "I know all about it, but send him over." One of the problems was deteriorating relations be- tween Magruder and Liddy. Liddy, 42, objected to work- ing for a man four years his junior. Magruder says Liddy was not getting his work done on time. One day, they met in the corridor and Ma- "some annoyance," and Ma- gruder asked him to come into his office. Soon they agreed that Liddy should leave the committee. But Fred LaRue, Mitchell's special assistant at CREEP, who sat in on the meeting, warned that Liddy's departure would destroy the intelligence - gathering net- work. After the meeting, Ma- gruder says, Liddy went to see John Dean at the White House and in the days to come Dean, Strachan and Krogh all urged Magruder to keep Liddy on. Ultimately it was decided that Liddy should move his base of opera- tions two floors down and become counsel to the Finance Committee. Finally, on March 30, Mit- chell, Magruder and LaRue met at Key Biscayne to dis- cuss-among other things-. Liddy's latest proposal. Liddy was not there, but they had his typed plan itemizing the number of people and the equipment he would need. The plan now called for an entry, bugging and photo- graphing documents at the Democratic National Commit- tee in Washington and, only "if the funds were available," similar operations at the Fon- Spirit of '76 50 piece service for 8 $24.99 Old Kings II Bradbury 70 piece50 piece service for 8 $34:99 service for 8 $24.99 down to $250,000. "We discussed it, brought up again the pros and eons," Magruder says. "No one was particularly overwhelmed with the project ... but after start- ing at this grandiose sum of a million dollars we thought that probably $250,000 would be an acceptable figure . it was a reluctant decision . . but finally Mitchell signed off on it in the sense of saying, 'O.K., let's give him a quarter of a million dollars and let's see what he can come up with.' ' Mitchell emphatically denies Magruder's version of this meeting. He says that he again rejected Liddy's plan with words like, "We don't need this. I am tired of hear- ing it. Out." After they got back to Washington, Magruder says, he called Strachan to tell him the plan had been approved. (As was his custom, Magruder says, he had also sent Strach- an a copy of Liddy's proposal in advance intended "for Hal- deman." Haldeman says he did net see it.) Magruder told Hugh Sloan that Liddy was authoi ized to draw $250,000. And Robert Reisner, Magru- der's assistant, recalls that one day early in April Magruder appeared at the door and said, "Call Liddy and tell him it's approved. Tell him to gel; going in the next two weeks." Liddy didn't wait that long. McCord, Hunt and he began meeting regularly at Hunt's office at the Mullen company. At one session, McCord re- calls, Hunt had a "step-by- step operation plan" for the break-in. McCord was im- pressed with his former C.I.A. compatriot, feeling that Hunt would make it "a professional operation." After one of their meetings, Hunt and McCord made a "reconnaissance" of their target. 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CARDEN cor, Ny ? vofirE PLAINS, N.Y 32 Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 among those taking part, and one of the Cubans had said they were instructed to attack Ellsberg -- "to call him a traitor and punch him in the nose, hit him and run." In- stead, Barker began arguing heatedly with a long-haired young man and ultimately Pico knocked the young man down. Sturgis also hit one of the demonstrators. Pico and Sturgis were immediately seized by Capitol police but, Pico reca(ls, they were quickly released when a mysterious "man in a gray suit" explained that they were "good men" and "anti-Communists." Within the next three weeks, two events took place in Washington that have been linked to the Barker group. One was a break-in at the Chilean Embassy on the night of May 13 during which the political files of the Ambas- Break-in front.) a swarm of judges and other high-ranking officials, and a leading Republican hostess, Mrs Anna Chennault. Al- though it is only two blocks from the State Department and eight from the White House, Watergate is a re- doubt for those who shun the city. A tenant who never 'wished to leave its saw- toothed facade could live for- ever among its four swimming pools, two restaurants, health club, supermarket, bank, post office, travel agency, limou- sine service, liquor store, flo- rist and hairdresser. And there, on the sixth floor of the office building, was the Demo- cratic National Committee. On their first reconnaissance, Hunt and McCord took the elevator to the sixth floor, looked at the glass doors to the committee, then walked down a stairwell to the base- ment. (McCord also made sev- eral reconnaissance missions to McGovern headquarters. Once, while Gregory engaged the attention of other volun- teers, McCord even considered placing a bug in Mankiewicz's office. But he didn't quite have time). Liddy had assigned McCord specific responsibility for the electronic surveillance, and on April 12 he gave him $65,000 in $100 bills out of the $83,000 he had received from Sloan a few days earlier. During the next six weeks, McCord paid out $51,000 of that money to electronic stores in Washing- ton, New York and Chicago, purchasing tape recorders, transmitters, antennas and eight walkie-talkies. He stored the equipment in a wooden box off the laundry room in his Rockville house. And On May 1, McCord re- cruited an assistant. From the Society of Former Special Agents of the F.B.I. in New York, he obtained the name of Alfred C. Baldwin 3d, a 36- year-old former agent and Marine captain, then a grad- uate student at Southern Con- necticut State College. That evening he called Baldwin at his home in Hamden, Conn. and told him that he needed to talk with him immediately, that night if possible. Im- pressed with the caller's ur- gency, Baldwin caught a flight that evening. The job turned out to be that of security guard for Martha Mitchell, a responsi- bility that CREEP had inherit- ed from the F.B.I. when John Mitchell resigned as Attorney General. McCord said the job was temporary but could be "a steppingstone to a perma- nent position" in government. After Baldwin accepted, Mc- Cord took him over to CREEP where he was formally hired by Fred LaRue. McCord then handed Baldwin a snub-nosed .38 revolver, saying, "You'll need this while you are with Mrs. Mitchell." That very af- ternoon, Baldwin left on a six- day trip with Martha Mitchell to Detroit and Westchester County, N.Y. As Baldwin left town, Ber- nard Barker and his associates were preparing for their first trip to Washington. That very morning, J. Edgar Hoover had been found dead in his bed. Reisner recalls that Mag- ruder received a call that day from Chuck Colson saying that demonstrations were planned when Hoover lay in state at the Capitol the next day and asking for some A "Vele YTIYAnrcrr7: ? (STACK ,IVIL c ASAYX"" PROFE.5 ON Y OCE.PACION SUGAR DE NA,INIENTO NUIVA VrAf.',X7 "w?""w" len-AU.1787,71T--T.U. RELIGION. PASA"RTE?1:29fINTNINeffilffra'ji /10.4 1(4 .10141. AIM 110110144// WIN l.r mENORES DE ES OTOS QUA LO ACOMPAAAN._ , . . On May 22, six ot the Bar- ker group returned to Wash- ington: Barker under the alias "Frank Carter," Martinez as ''Jene Valdes," Sturgis as "Joseph D'Alberto," Pico as "Joe Granada," DeDiego as "Jose Piedra" and Gonzalez as "Raul Goday." They checked into the Manger Hamilton, five blocks from the White House. Pico says Barker told him they were coming to con- front antiwar demonstrators again, and indeed, that was a weekend of intense clashes between Washington police and demonstrators protesting the mining of North Vietnam- ese harbors. But there is no record of any incident be- tween Barker's men and the protesters. The real reason for the trip appears to have been the final planning session for the Watergate break-in. McCord BIADOS UNIDOS MEXICANOS SECRETARIA OE GOBERNACION DUPLICADO ' ESTE DOCUMENT? AUTORIZA A St) TITULA ARSE EN LA REPUBLICA NEXLCk',A,.NTA rt LA .1511 DESOE LA fECNA DE (MTN AUTO AC DERN NY TICAN1 t, Alias: A Mexican tourism card made up for Frank Sturgis, one of the Watergate burglars. "counter demonstrators." Reis- ner says Liddy was asked to handle this, and he appar- ently turned the matter over to Hunt. For later that day, acting on Hunt's instructions, Barker called Reinaldo Pico, a burly Bay of Pigs veteran, to his office. According to Pico, Barker told him that "hippies" and "traitors" were going to "perpetrate an out- rage to Hoover." That eve- ning, Barker, Pico, Sturgis, Fernandez, DeDiego, Martinez, Virgilio Gonzalez (a Miami locksmith) and three other Cu- bans flew to Washington, checked into a downtown Hol- iday Inn and awaited instruc- tions. The next evening at 6, they were dispatched to the west steps of the Capitol, where antiwar demonstrators, in a protest planned long before Hoover's death, were reading a list of servicemen killed in Vietnam. Daniel Ellsberg was sador and his First Secretary were rifled. John Dean later told Gen. Vernon Walters, Deputy Director of the C.I.A., that he believed one of the Barker group might be in- volved in the break-in. Jack Anderson reported that Frank Sturgis and Eugenio Martinez may have been involved. And three days later, in the early morning hours of May 16, the doors of a prominent law firm in the Watergate complex were tampered with and per- haps broken into. Nothing was reported stolen, but political espionage was later sus- pected since the partners in the firm included Patricia Roberts Harris, chairman of the credentials committee for the Democratic convention; Sargent Shriver, John Ken- nedy's brother-in-law and for- mer director of the Peace Corps; and Max M. Kampel- man, a leading adviser to Hubert Humphrey. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 recalls that one night shortly after the 22d, Liddy told him to come to the Manger Hamil- ton about 8. Present at the meeting in Barker's cramped bedroom were Liddy, Hunt, McCord, Tom Gregory and the six men from the Barker group. Liddy explained their "double mission" that coming Memorial Day weekend: break- ins at the D.N.C. and the Mc- Govern headquarters. McCord demonstrated the use of walkie-talkies. At 2:90 P.M. on May 26, the six-man Barker group moved from the Manger Hamilton to the Watergate Hotel (Pico and DeDiego say they went to the hotel but deny taking part in the subsequent burglary). There they were joined by Hunt, under his favorite alias, "Edward Warren," and Liddy, as "George Leonard." At al- most exactly the same mo- ment, Baldwin returned from a trip to Connecticut to pick up some clothes and checked back into a room at Howard Johnson's Motor Lodge direct- ly across Virginia Avenue from the Watergate. Baldwin was no longer guarding Mrs. Mitchell. On their trip in early May, she had become dissatisfied with her new bodyguard. (In later testimony, she called him "the most gauche character I have ever met" and said he took off his shoes and socks in a Waldorf Astoria suite and "walked around in front of everybody in New York City barefoot.") On May 12, McCord asked Baldwin to do some undercover surveillance of radical activity in Washing- ton (promising that he would be brought to Miami in Aug- ust for similiar work). He was assigned to watch some sit- ins on Capitol Hill and to mingle with the crowds out- side the offices of certain members of Congress to de- termine which were giving gallery passes to the demon- strators (he recalls watching the offices of Senators Ken- nedy, Javits and Proxmire, and Representatives Chisholm, Abzug, Koch and McCloskey). During that period, McCord also asked him to move into Room 419 at Howard John- son's, already reserved in the name of McCord Associates. Baldwin lived there for nearly two weeks without incident, but when he returned from Connecticut at 2 P.M. May 26, a surprise awaited him in Room 419. When he opened the tur- quoise door, he saw McCord sitting by a Formica-topped desk fiddling with the dials on a large radio receiver. Stacked along the desk, on the couch and in the corners was an array of other equip- ment. McCord pointed across the street to the great, gray facade of the Watergate Of- fice Building and said, "We're going to put some units over there tonight, and you'll be monitoring them." He showed Baldwin how to use the moni- tors. Then he took the white roorn telephone apart, inserted a tap, and to test it, dialed a local number for a recorded message. Later that afternoon, Mc- Cord said, two of his colleagues from CREEP would be com- ing to inspect the room and, "because we're all in security work," everybody would go under an alias. He said Bald- win would be introduced as "Bill Johnson," the name he had used for his surveillance operations. But Baldwin re- calls that when Liddy and Hunt arrived, McCord "got all confused," used some aliases, Approved For Release 2 forgot orthers ana fanaily just introduced us under our per- sonal names." Hunt and Liddy inspected the equipment. Then all four strolled across Vir- ginia Avenue to Hunt's room in the Watergate where they conferred with Barker and his group for a half hour. At 8 P.M., McCord and Baldwin went back to Howard John- son's; the other eight went down to dinner. And what a dinner it was! Barker later described it as "the banquet." Hunt had re- served the Continental Room, a large L-shaped conference room on the first floor of the Watergate Office Building. The dinner was catered by the Watergate Hotel and the bill ran to $236?nearly $30 per man. For Hunt?who fancied wine and food as much as intrigue?it must have been an exquisite eve- ning. For the banquet was only an elaborate facade for the team's first assault on the Watergate. Near midnight, while the waiters were clear- ing the last Camembert and fruit from the table, Hunt and the locksmith, Gonzalez, hid in a corridor that ran behind the Continental Room. Then, when the waiters had locked up, they went to work on a door connecting the corridor with the first floor of the of- fice building. If they had gotten through that door, they could have simply strolled down the corridor and climbed the stairwell to the sixth floor lobby and the D.N.C. But Gonzalez couldn't open the door. So after reporting their embarrassment to Liddy via walkie-talkie, the Cuban locksmith and the epicure spy, all that fine wine and cheese still settling in their stomachs, were unable to escape from the Continental Room unt4 dawn. Meanwhile, the rest of the team was launching the sec- ond part of its double mis- sion. About midnight, Liddy and some of the Cubans left by car for Capitol Hill. A half hour later, McCord and Bald- win followed. On First Street, S.W., about four blocks from the Capitol, they passed Mc- Govern headquarters and Mc- Cord said, "That's what we're interested in, right there." Baldwin recalls that an up- stairs light was on and a man?perhaps a drunk?was standing by the front door. Baldwin says that when Liddy joined them he was carrying an attach?ase in which he later saw a high-powered pellet pistol wrapped in a towel. Turning up an alley near the McGovern head- quarters, they paused under Approved For Release 01/09/04: CIA-RDP84-00499 68" Length Sale $594 You don't have to be an architect to appreciate Carlyle's architectural-llook convertible. But a good sense of design and proportion helps. If that's your taste pattern, feast your eyes on Carlyle's new upholstered chrome arm sofa/bed. Two inchesof square heavy chrome create dramatic effects on what becomes a contemporary classic. Architectural lines on the outside. And inside, the sybarite in you takes over. Because the straight and sparse concept is balanced by the resilient comfort of the justly famous Carlyle mattress. .. the long-lived test of Carlyle quality. 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Works harder, longer. Non-irritating, non-toxic. Recommended by doctors. If your dealer doesn't have OSTOBON. send $3.00 for generous size to PETTIBONE LABORATORIES, Dept. T, 11 E. 44th Si, New York 10017 or& BraclipriisalciasiOlease a bright street light. "Shall I take that out?" Liddy asked. McCord said it wasn't neces- sary. (Several nights earlier, Liddy had shot out a light near that spot and two days before, while on his way to lunch -with Hugh Sloan, he had fired the same pellet gun into a toilet at the prim Hay-Adams Hotel.) About 5 A.M., with the man still lingering around the front door, they decided to "abort the mission" and went to bed. The next night, they had another go at the D.N.C.? this time with a different modus operandi: Sometime that evening, Hunt went across the lobby joining the Watergate Hotel and the of- fice building, down the stair- well, and taped the latch of the door on the B-2 level so that anyone could enter from the garage. He also taped sev- eral doors leading from the stairwell onto the sixth and other floors. Then he rejoined Liddy in their hotel room Barker's team, wearing rub- ber gloves and carrying cam- eras and lights, followed and within minutes were in the Democratic headquarters. From his balcony at Howard Johnson's, McCord could see the pinlights from their pen- cil flashlights moving about like fireflies in the darkened offices. Barker called Hunt on his walkie-talkie and Hunt, in turn, telephoned McCord to say, "My people are in; you can go in now." About 1:30 A.M., McCord crossed the street, went through the base- ment door and up the stair- well to the back door where one of the Cubans let him in. Getting quickly to work, Mc- Cord put one tap on the phone of Fay Abel, a secre- tary who sat directly outside Larry O'Brien's office and shared several extensions with him. He put another on the phone of R. Spencer Oli- ver, executive director of the Organization of State Dem- ocratic Chairmen. Then he tested both taps with a small pocket receiver. They worked. Meanwhile, Barker says, he was following Hunt's instruc- tions to "look for documents indicating contributions from Cuba or from leftist organiza- tions and those inclined to violence." Quickly sampling files from several cabinets, he could find nothing of this sort. So he took documents "where names of persons were involved," others where there were "notations of numbers," and one involving security for the Democratic National Convention. He gave these to Martinez, who photo- graphed them with a 35-mm. ? ? ? ? ? vtrq 4212 Frni00499R000200010002-2 Sturgis and DeDiego stood guard at the front and back doors. By 3:30 A.M., the mission was complete, and the team returned to Hunt's room at the Watergate to critique it. That evening they had an- other crack at McGovern headquarters. On Hunt's in- structions, Gregory went in to work about 3 P.M. and typed labels or stuffed envelopes most of the afternoon, Then he hid in the furnace room until nearly midnight. When he emerged, a man sitting on the first floor said, "What are you doing here?" Gregory mumbled that he had been "in the back room" and quick- ly left. He called Hunt at the Watergate Hotel and told him there was still somebody at McGovern headquarters. That was the last attempt on Mc- Govern headquarters. Starting the next day, a Burns guard was stationed outside 24 hours a day. Meanwhile McCord and Baldwin had begun monitor- ing the bugs in the Democratic National Committee. They picked up the bug on Spencer Oliver's phone, coming in on 118 megacycles. But they couldn't find the "O'Brien bug" on 135 megacycles. Mc- Cord tried switching the an- tennas. Still nothing. McCord then asked Baldwin to get another room higher in the motel in hopes that might improve the reception. On May 29, McCord moved up to room 723. But still there was nothing. McCord ultimately concluded that either the O'Brien bug was faulty or there was too much shielding in O'Brien's office. So Baldwin settled down to monitoring the one working bug. "I would keep an eye on the little TV-type screen on the monitoring unit," he re- calls. "A constant line ran across the screen when the tapped phone was not in use. When someone started using the phone, the line would scatter and I would quickly put on the earphones." Mc- Cord brought him an electric typewriter, and he would type "almost verbatim" transcripts in duplicate. When something caught McCord's eye in the transcript he would sit down immediately and type up a memo from information in the logs, beginning the memo "A confidential source re- ports . . ." But there was very little of such importance. Of the 200 calls Baldwin estimates he monitored over the next few weeks, some dealt with "political strategy" but many covered "personal matters." Lock picks: The set Gonzalez carried at the Watergate. Baldwin says several secre- taries used Oliver's phone be- cause they thought it was the most private one in the office: They would say, "We can talk; I'm on Spencer Oliver's phone." Some of the conversa- tions, Baldwin recalls, were "explicitly intimate." McCord gave the first copy of Baldwin's typed transcripts to Liddy, who had his secre- tary, Sally Harmony, type them on special stationery headed with the code word "Gemstone." Mrs. Harmony recalls typing at least eight of them, which referred to coded sources 'Ruby 1," "Ruby 2" and "Crystal." Barker gave Liddy copies of the photo- graphs his team had taken. Mrs. Harmony recalls about 25 8- by 10-inch "glossies" showing surgical-gloved fin- gers at the bottom. One, she recalls, was a letter signed by Larry O'Brien. Liddy, in turn, gave the photographs and the Gem- stone transcripts ? in two batches ?to Magruder. The first batch came in around June 8, Magruder recalls, and he took it the next morning to his regular 830 meeting in Mitchell's office. Magruder says Mitchell reviewed the materials and determined "there was really no substance to them." He then called Lid- dy and "indicated that this was not satisfactory and it was worthless and not worth the money that had been paid for it." Magruder says Liddy indicated there was a problem with one tap '`not placed in a proper place" and said "he would correct these matters and hopefully get the infor- mation that was required." Mitchell denies that these con- versations even took place, calling Magruder's story "a palpable, damnable lie." Because of the "sensitive nature" of the materials, Ma- gruder says, he did not send Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 them by messenger to Strach- an at the White House as he had with previous information on Watergate. Instead, he says, "I called Mr. Strachan and asked would he come over and look at them in my office. As I recall, he did come over and look over the documents and indicate to me the lack of substance to the documents." Haldeman says he does not recall getting any reports on Watergate espionage from Strachan. On June 12, McCord came to Baldwin's room? gave him a crisp $100 bill and said, "You are going to have a ball this week." He asked Baldwin to visit the Democratic Commit- tee under an alias and make sure where O'Brien's office was. Familiar with Democrat- ic officials in his home state, Baldwin decided to masquer- ade as the nephew of John Bailey, the Connecticut State Democratic Chairman and for- mer Democratic National Chairman. The Democrats were very happy to show such a dignitary around and assigned him as guide one of the secre- taries whose intimate phone conversations he had been lis- tening to with such inter- est. She led him into O'Brien's office and said, "This used to be your uncle's of- fice." Baldwin noted its loca- tion overlooking the Potomac River, then went back to the motel and drew a diagram for McCord. At 4 P.M. on June 16, Bar- ker, Martinez, Sturgis and Gonzalez flew into Washing- ton from Miami, rented an Avis car at. the airport and drove to the Watergate Hotel where Barker and Martinez checked into Room 214 and Sturgis and Gonzalez into Room 314. At $38 a night, the rooms are the cheapest the lux- ury hotel has to offer but are elegantly turned out with gold carpet, gold bedspreads and red-trimmed gold drapes. There they were joined by Hunt, Lid- dy and McCord for a brief meeting before all adjourned for a lobster dinner in the ho- tel's Terrace Restaurant over- looking the broad sweep of the Potomac. Sometime that evening, McCord retraced Hunt's path' of May 27, down the stairwell to the garage level where he taped two doors. Then he went back to Baldwin's room in Howard Johnson's where he tested a room bug disguised as a "smoke detector." Later, he went out and bought a shopping bag full of screw- drivers, wires, batteries and soldering irons, and for sev- eral hours he and Baldwin AlgrirtAiettlFdlicRefitititNe2001YOW041:tit-AeRD15184e00499M02:00G46002144 cCord re- guard at the Watergate Office treated to Baldwin's room. A while eating chocolate sun- daes. About 1 A.M., Hunt called McCord from Room 214 and asked how the Democratic Committee looked across the way. McCord told him one man was still working there. But a few minutes later the lights flickered off and McCord called back to say the path was clear. Hunt told him td come over. McCord unhooked a walkie-talkie from his belt and told Baldwin, "Any activ- ity you see across the street, you just get on this unit and let us know." McCord then crossed the street, checked the garage-level doors to make sure they were still taped and joined the others in Room 214. A few minutes later, Frank Building, was making his rounds and found the two ga- rage-level doors taped. Think- ing that the tape had been left by the maintenance men, Wills removed it and went on his way. Soon afterwards, he strolled across the street to get a cup of coffee at Howard Johnson's. McCord, Barker, Martinez, Sturgis and Gonzalez left the hotel and moved swiftly across the darkened driveway to the garage-level doors. To their astonishment, they found the doors locked and, after a brief conference, Barker ordered Gonzalez to jimmy them. To avoid detection, Barker and his other two men went back EXPAND YOUR IMAGINATION ...with a vIzto-18fickee Wall System CREATE more wall space than you ever imagined, a room possessed with our versatile, expandable custom wall systems. This clear, solid acrylic unit? 11.1-500 ? disappears into space as it happily floats your most precious possessions and allows them to gleam like treasured jewels. Shelves are a solid half-inch thick, brackets are a sturdy one- inch thick. This ethereal wall arrangement was designed for those who demand the ultimate in beauty, function and durability, no matter what the cost. See your Dealer or Designer. Send $1.00 for Catalog No. 7-500 to: Naomi Gale 2400 Ryer Ave., Bronx, N.Y. 10458. Gratis at our Showrooms. SHELVES UNLIMITED WOODWORKERS SINCE 1899 2400 RYER AVE., BRONX, NEW YORK 10458 New York City: SHELVES UNLIMITED, 233 E. 59th St. (bet 2nd & 3rd hes.) Hours: Daily & Sat. 10 AM to 6 PM, Mon. & Thurs. 9 PM. Phone: 212-421-2118 Bronx/Westchester: SHELVES UNLIMITED STUDIO, 2400 Ryer Avenue. Hours: Mon. thru Fri. 10 AM to 4 PM. Phone: 212-298-7087 (car. E. 187 St.) Approved For Release 200 half hour later, Gonzalez re- ported by walkie-talkie that the door was open. After a little additional difficulty with the glass doors on the sixth floor, the team entered the D.N.C. and began rifling the files an the Youth Division. Meanwhile, Frank Wills had returned to the building. Checking the B-2 level, he found the doors taped again. This time, he went upstairs and called the police. At 1:52 AM., three men from the Sec- ond District Casual Clothes Squad?Sgt. Paul Leeper, of- ficers Carl Shoffler and John Barrett?were cruising in their unmarked car along K Street. On hearing the call, they sped to the Watergate, talked with Wills, looked at the tape on the basement doors and then began checking the floors from the top down. Standing on the balcony of his room admiring the "beau- tiful night," Baldwin saw the three men dressed in casual clothes enter the building and thought nothing of it. But when he saw the lights go on on the eighth floor, he grabbed the walkie-talkie and said, "Base headquarters, base one, to any unit, do you read me?" A voice Baldwin recognized as Hunt's said, "I read you; go on. What have you got?" "The lights went on on th& entire eighth floor." "We know about that. That You have it made... with Empire Kosher's COOKED Chicken in Barbecue Sauce The height of convenience ? no preparation. Fully tender-cooked, just heat and serve. Enjoyable cold, too. Savory country-style barbecue sauce ? moist, delicious! Buy a couple today . . . eat in good health. KOSHER Empire POULTRY The Most Trusted Name in Kosher Poultry ECfr kogv. 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Street 725-4840 ROSLYN HEIGHTS L.I.Exp'way Exit 36 300 So, Service Rd. 621.7537 PARAMUS NewJersey 685 Route 17 app. FashionCenter 447 4410 Daily to6 -Thursday to 9 -Mon.& Thurs. to 9 in Roslyn Hts.& Paramus Haw to get home delivery of The NewYorkilimes Just fill in and mail the coupon today. Or call (212) MU 7-0700. at Neuf Mork gime') Home Delivery Department Times Square, N.Y., N.Y. 10036 Please arrange to have The New York Times delivered to my home as checked: 0 Every morning 0 Weekdays 0 Sundays Name I 1 Address I I City State & Zip I I Apt.. if any) Phone 1 1 Home delivery is available through independent route dealers for an extra service I charge in most parts of the New York metropolitan area and in major cities throughout the O.S. "AM MI IMII Mil NMI MI MI MEI MIN MIMI MB MAN iiiiiintiR 36 ase 2001/09/04: CIA-RDP84-00499R000200010002-2 victuals out here who are dressed casually and have got their guns out." At that, Baldwin recalls, Hunt went ".1 bit frantic." Leeper and Shoffler re- entered tin building and moved down a corridor to- ward an mfice where the five-man team had crouched behind a partition. As Bar- rett approached, he saw part of an arm. rob up against the cloudy glass at the top of the partition. Jumping back, he shouted, "Hold it! Stop! Come out!" As the five men emerged with their rubber- gloved hands up, Baldwin across the street heard a voice whisper. "They got Break-in (cont.) is the 2 o'clock guard check. Let us know if any- thing else happens." Just then the lights flick- ered on and off on the sixth floor. Baldwin saw two fig- ures in windbreakers and slacks, one with a gun drawn, emerge on the sixth floor bal- cony. "Base one, unit one, are our people in suits or are they dressed casually?" "Our people are dressed in suits," said Hunt from Room 214. "Why?" "You have some trouble because there are some indi- us" and McCord's voice say- ing, "Are you gentlemen Met- ropolitan Police?" "Are you still across the street?" asked Hunt. "Yes, I am," said Baldwin. "Well, we will be right over." A minute later, Baldwin saw Hunt and Liddy emerge from the Watergate, get into a car and drive off. And soon afterwards, Hunt burst into Baldwin's room. ( i.ouching behind a table, he whispered hoarsely, "What is going on, what is going on?" "C'mon see," said Baldwin. "I have got to use the bath- room," Hunt said as he scut- tled toward the toilet. Cover and Uncover The cover-up began that Saturday when we realized there was a break-in. I do not think there was ever any discussion that there would not be a cover-up. Magruder, testimony to Ervin Committee, June 14, 1973. HEN Hunt came out of the bath- room, he grab- bed the white telephone and called Michael Douglas Caddy, a Washington attorney who once worked out of the Mullen company's offices. Then he told Baldwin to pack up all the equipment in the room and take it to McCord's house in Rockville. "Get it the hell out of here! Get yourself out of here! We will be in touch. You will get further instructions." As Hunt rushed down the hall toward the elevator, Baldwin cried after him: "Does this mean I won't be going to Miami?" There was no answer. Quickly packing up everything in the room, Baldwin took it down to McCord's Dodge panel truck parked outside. After calling Mrs. McCord to say something had "gone wrong," he drove the truck to her house. She and her two daugh- ters then brought Baldwin through the dawn to Connecti- cut. At 3:20 AM., Hunt went to the Mullen company and called Barker's home in Miami. Then he drove to Caddy's house at 2121 P Street, where he arrived about 3:40. Caddy ;ays he and his new client made several calls trying to find another lawyer with more "criminal law" ex- perience, finally locating Jo- seph Rafferty. another Wash- ington attorney. At 5 A.M.. Hunt called Liddy and re- ported that lie had obtained lawyers. Meanwhile, after booking the five men at the Second District station house, the police searched them and found $1,300 in $100 bills. Later, in Rooms 214 and 314, they found $3,200 more in neat packets of $100 bills with consecutive serial num- bers, soon to be traced to Barker's 'withdrawals from the Republican National Bank in Miami. l'n the rooms, they also found Martinez's and Barker's address books, both containing Howard Hunt's name and phone numbers, and a check made out by Hunt to the 1 akewood Coun- try Club. Within a few days, the police and the F.B.I.- ?which entered the case almost immediately? pieced together a roughly ac- back to his car and he drove curate picture of the events at lease 2001/09/04: CIA-RDP84-00499R000200010002-2 the Watergate that night: what seemed to be a small-time crime, with some admittedly bizarre twists, easily dis- missed in some quarters. Ron Ziegler called it "a third-rate burglary." But it set off a frantic search for safety among those in higher echelons, raising the curtain' on a new chapter of Water- gate: the rush to destroy in- criminating evidence, to ob.. struct the investigation, to keep the break-in defendants from making con nee tions which might point to the very top of the campaign team, in- deed to Richard Nixon him- self. At first, their concern was chiefly political?to prevent the events from damaging the President's re--election chances. The campaign lead- ership ? Mitchell, Magruder, LaRue, Mardian and Porter? first heard of the arrests that morning of June 17 in Los Angeles, where they had gone for a series of campaign meetings. Around 8:30 A.M., while at breakfast in the Beverly Hills Hotel, Magruder got a phone call front Liddy, who told him McCord had been arrested at the Water- gate. Magruder hung up, tried to find a "secure phone," then called Liddy back on a pay phone to get more detail. That set off a flurry of hurried meetings. Bart Porter recalls one gathering of Mitchell, LaRue, Mardian and Magruder in a large empty banquet halt during which he was in- structed to stand guard 50 yards away. And the circuits to Wash- ington droned with appre- hension. According to Ma- gruder, Mitchell told Mardian to call Liddy and have him ask Attorney General Klein- dienst to get McCord re- leased. Liddy tracked Klein- dienst down on the 17th hole of the Burning Tree golf course, but was rebuffed. Magruder also called his as- sistant. Robert Reisner, and asked Reisner and Robert Odle, CREEP's director of ad- ministration, to take home his files on advertising, budget, strategy and "Gemstone." Much of the discussion that day focused on what Mitchell should say about McCord's ar- rest. Eventually, he issued a statement evincing no knowl- edge that McCord was CREEP's full-time security co- ordinator and dismissing him as "the proprietor of a private security agency who was em- ployed by our committee months ago to assist with the installation of our security system" and who also had "a number of other business cli- ents." But Martha Mitchell knew very well whom McCord worked for, and when Mitch- ell left for Washington on Monday, he persuaded her to stay in California. She says she was held "political prison- er" there by her bodyguard, Steve King, who jerked the telephone wires out of the wall as she was telling Helen Thomas of U.P.I. that "they don't want me to talk." Three days later, she told Miss Thomas that she would leave her husband unless he left the Government, saying: "I'm not going to stand for all those dirty things that go on." Back in Washington, at 9:30 A.M. Monday, Hugh Sloan met Gordon Liddy in the hallway at the finance committee. Lid- dy was in ?a hurry and told Sloan, "My boys got caught last night. I made a mistake. I used somebody from here, which I told them I would never do. I am afraid I am go- ing to lose my job." (Odle saw him later that day carrying a foot-thick pile of documents to the paper shredder.) Then Sloan met with Magruder, who had hurried back from Cali- fornia at Haldeman's orders. Sloan says Magruder was very worried about the money found on the burglars and that, knowing it could be traced to Liddy, Magruder suggested they ought to say Liddy had Approved For Release 2001/09/04: CIA-RDP84-004 received only about $75,000. Sloan says he insisted it was far more and that he would not perjure himself, at which Magruder said, "You may have to." (Magruder tells a different story. He says he only indi- cated that Sloan had some legal problems and "might have to do something about it," at which Sloan asked, "You mean commit perjury?" and Magruder said, "You might have to do something like that.") Magruder and Dean both met with Liddy, who con- fessed to Magruder he had "goofed" and assured Dean that "he was a good soldier and would never talk [and] if anyone wished to shoot him on the street he was ready." That afternoon, Dean recalls, Gordon Strachan came to his office and told him he had been instructed by Haldeman to "go through all of Halde- man's files over the weekend and remove damaging mater- ials . . . including such mat- ters as memoranda from the re-election committee, docu- ments relating to wiretap in- formation from the D.N.C., notes of meetings with Halde- man and a document which reflected that Haldeman had instructed Magruder to trans- fer his intelligence gathering from Senator Muskie to Sen- ator McGovern." Haldeman says he never ordered any such material destroyed. Later that day, Dean says, he called Liddy on Ehrlichman's in- structions and told him to tell Hunt to "get out of the country." Then, while Ron Ziegler was publicly dismissing the whole matter, Mitchell, La- Rue, Dean, Mardian and Ma- gruder reportedly met at Mitchell's apartment at the Watergate for a full-dress strategy session. Magruder says it was agreed that he should destroy the "Gem- stone" file, so he immediately called Reisner and told him to collect that file and "any sensitive material that could be embarrassing to us." Mitch- ell denies they discussed de- stroying materials. OME very sensitive material indeed was removed that night from Howard Hunt's safe in Room 552 of the Executive Office Building. Ac- cording. to Dean, the safe contained, among other things, a psychological anal- ysis of Daniel Ellsberg, materials "relating to Chap- paquiddick," a "spliced to- gether" cable on Diem's as- sassination, other State De- partment cables on Vietnam, and a pistol with a clip in it. The material was moved over to the White House and stored in a safe overnight. The next morning, Dean and an aide talked about "how some of these things could be potentially embarrassing." Dean says he went to Ehrlichman, who told him to "shred the documents and 'deep six' the briefcase" (in which the most sensitive ma- terials had been placed). Dean says he asked Ehrlichman what he meant by "deep six" and Ehrlichman said, "You drive across the river on your way home at night?don't you? Well, when you cross over the bridge, just toss the briefcase in the river." Dean says he told Ehrlichman that he would bring the materials to him, and he could take care of it because he crossed the river on his way home, too, but Ehrlichman said, "No thank you." Instead. Dean says, he turned the routine contents of the safe over to two F.B.I. agents on June 27. The next day, he told Ehrlichman that he still had the "sensitive materials." Dean says Ehrlich- man told him he was about to meet with L. Patrick Gray, the acting director of the F.B.I., and to bring the ma- terials over. Dean says he took them to Ehrlichman's office and placed them in two file folders on the coffee table. (Ehrlichman says he did not know what was in the folders.) Dean says he told Gray that the materials did not relate to Watergate but could be "political dynamite" if revealed. Gray took the documents back to his Con- necticut home where, he says, he threw them in an incinera- tor last Christmas without examining them. Meanwhile, another effort was under way to throw the protective shield of "national security" over at least part of the Watergate affair?and thus to avoid a major political embarrassment in the midst of the campaign. The Presi- dent later said that the Watergate burglary had come as a "complete surprise" to him and that his im- mediate reaction had been that those guilty should be "brought to justice." But within a few days, he added, "I was advised that there was a possibility of C.I.A. involve- ment in some way." (This ad- vice apparently came from Dean, who says Gray told him on June 22 that he believed the burglary might be "a C.I.A. operation" because of all the former C.I.A. men in- Approved For Release 2001/09/04: CIA-RDP84-004 R000200010002-2 utterly useless and only 1298 But once you own it, you'll wqnder how you lived a day without this "English Fog" fine mist sprayer. When I first saw this, that's just what I said ?"Completely useless." But anyhow, I brought it home to my wife, Mrs. Wallace Brown. She started using it on the house plants?they got greener, healthier. She uses one in the laundry, because she says it does a better job than a spray iron. She even uses it when cleaning windows?cuts out paying all that money for aerosol sprays. She told me the other night that the "English Fog" mist-er kept cut flowers alive longer. 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Cover (cont.) volved. Dean says he reported this to Haldeman and Ehrlich- man. According to Haldeman, Dean also said that Gray had "requested guidance on some aspects of the Watergate inves- tigation and of the possibility of C.I.A. involvement." Halde- man reported this to the President.) The President said he instructed Haldeman and Ehrlichman to "ensure that the investigation not expose either an unrelated covert operation of the C.I.A. or the activities of the White House investigations unit." The lat- ter may be what the Presi- dent was most worried about. He said he feared that Hunt might be linked to the Plumbers and that highly sen- sitive "national security mat- ters" might thus be exposed. "Every President needs an S.O.B. ? and I'm Nixon's," said Harry Robbins Haldeman. Just 100 feet down the gold carpet from the Oval Office, the President's chief of staff was in a strategic position to exercise his steely-eyed role. Erecting a "Berlin Wall" around the President, Halde- man assured that "those who had no legitimate claim" on the President's attention ? and perhaps some who did ? were kept out. For 20 years, Haldeman's life moved back and forth between advertising and Nixonian polities. In his professional career, he was a vice president of J. Walter Thompson in Los Angeles, su- pervising the Walt Disney, 7- Up and Black Flag insect spray accounts. But after 1956, when he worked as an ad- vance man in Nixon's senator- ial campaign, he broke away every couple of years to cam- paign for his political mentor, rising to "tour director" in 1968. With his flat-topped crewcut and austere clothes, he quickly became known as "the Prussian." A determined anti-Communist (his grand- father founded the Better America Foundation), Halde- man was somewhat to the right of Nixon. But his devo- tion to his chief became legen- dary. His chief form of relax- On June 23, Richard Helms, the C.I.A. director, and Gen. Vernon Walters, the deputy director, were summoned to the White House for a meet- ing with Haldeman and Ehr- lichman (Dean says Ehrlich- man told him that Walters was "a good friend of the White House" who had been "installed so they could have some influence over the agen- cy"). According to a Walters memo, Haldeman said the in- vestigation was "leading to a lot of important people and this could get worse." He asked Helms what connections the C.I.A. had with Watergate and Helms said "None." Then, Walters says. "Haldeman said the whole affair was getting embarrassing and it was the President's wish that Walters call on Acting Director L. Pat- rick Gray and suggest to him that since the five suspects had been arrested, this should be sufficient and that it was not advantageous to have the inquiry pushed, especially in Mexico." At 2:30 that afternoon, Wal- ters called on Gray, telling him he had just talked to "the White House." Walters said that, while the investigation had not yet touched any C.I.A. activity, if it were pushed "south of the border" it could reach one of the agency's cov- ert projects. According to Wal- ters, Gray said "this was a most awkward matter to come up in an election year and he would see what he could do." At two meetings on June 26 and 28, John Dean asked Wal- ters whether the C.I.A. could pay the bail and salaries of the five men, but Walters de- murred, saying that any in- volvement could damage the agency's "apolitical" image. And so it went through early July, Gray telling Walters that "the pressures on him to con- tinue the investigation were great" and he would do so un- less the C LA. could provide documents showing that the investigation would damage national security; Walters tell- ing Gray that "I had a long association with the President and was as desirous as anyone of protecting 'him" but didn't believe a C.I.A. letter on "the spurious grounds that it would uncover covert operations would serve the President:" Gray replying he "did not see why he or I [Walters] should jeopardize the integrity of our organizations to protect some mid-level White House figures who had acted imprudently." Around this time, F.B.I. offi- cials began telling Gray that a "cover-up" was under way and /614,0eeClegt5P00021?3gfaitilAdirob812-fresi- dent, but one official recalls that Gray "just didn't get the message to the President be- cause he was apparently afraid to trtake it appear he didn't know what he was doing." The only warning was a veiled one. On July 6, Gray called Clark MacGregor (then cam- paign manager, replacing Mitchell, who had resigned July 1, citing his wife's ulti- matum). Gray told MacGregor that he and Walters felt the White House staff was "care- less and indifferent" in its use of the F.B.I. and Within 37 minutes, the President. called Gray and congratulated him on the F.B.I.'s handling of an airline hijacking. Then, Gray says, he told the Presi- dent that he and Walters felt that "people on your staff are trying to mortally wound you by using the C.I.A. and F.B.I. and by confusing the question of CIA. interest in, or not in, people the F.B.I. wishes to in- terview." Gray says the Presi- dent replied only: "Pat, you just continue to conduct your aggressive and thorough inves- tigation." (In his later account of the conversation, the Presi- dent made no mention of Gray's worry. He recalled: "Mr. Gray suggested that the matter of Watergate might lead higher. I told him to press ahead with his investigation.") UT some of the Pres- ident's top campaign aides were working hard to obstruct the investigation. Magruder says that through late June and early July there was a series of meetings in Mitchell's office attended by Mitchell, Dean, LaRue, Mardian and himself (Dean says he was not there). At one point, Magruder recalls, he volunteered to "take the heat" and "there were some takers on that." But, he says, most of those present felt that wouldn't work, because Ma- gruder was not in a position to have authorized the $232,- 000 which Liddy had spent on clandestine activities. That trail would inevitably lead higher?eventually to Mitchell ?and thus could seriously damage the President's re- election chances. Therefore, Magruder says, it was decided that the trail must stop with Liddy who, after all, had originated the plan and carried it out (he was already a major target of the investigation and Mitchell had fired him on June 28 for fail- ing to cooperate with the F.B.I.). Magruder says they "took factual activity we had asked Liddy to do and we ex- aggerated to a great extent the amount of money spent on those activities," suggesting that Liddy had taken that money and gone off on his own to commit illegal acts. Magruder asked Bart Porter, a CREEP aide, to back him up by saying he had given Liddy $100,000 to infiltrate radical groups planning demonstra- tions against Porter's "surro- gate speakers" program?an outright fabrication. Magruder told Porter that his name had been mentioned by Mitchell and LaRue as "someone we can count on" and "a team player." Porter did not let the team down. But they still had a problem with Hugh Sloan, treasurer of the finance committee, who, despite pressures from Magru- der and LaRue, was unwilling to underestimate his pay- ments to Liddy. Sloan says he went even further, approach- ing several White House aides on a Potomac boat cruise to arrange appointments with Chapin and Ehrlichman on June 23. He says he told Chapin that there was "a tre- mendous problem [at CREEP] and something had to be done," to which, he says, Chapin replied that "the im- portant thing is that the Presi- dent be protected" and urged Sloan to go away on a long overdue vacation. That after- noon, Sloan says, he told Ehr- lichman that "someone from the outside should come in and look at the whole thing." Sloan says Ehrlichman appar- ently interpreted his concern as a personal one because he offered to get Sloan a lawyer. But Ehrlichman kept saying, "Do not tell me any details. I do not want to know." Then two F.B.I. agents came to see Sloan. LaRue told him he should see Mitchell first. Sloan recalls that he went into Mitchell's office with La- Rue and Mardian. "I was es- sentially asking for guidance. The campaign literally at this point was falling apart before your eyes. I had some very strong concerns about where all this money had gone." Sloan says John Mitchell looked at him and said: "When the going gets tough, the tough get going." Meanwhile, Dean was /rov- ing to restrain the official in- vestigation. He was rebuffed by Attorney General Klein- dienst, but says he found more understanding from Henry E. Petersen, the Assistant Attor- ney General in charge of the Watergate inquiry, who left him with "the impression that he realized the problems of a wide-open investigation of the White House in an election year." Dean arranged to sit in on the F.B.I. interviews with eight White House staf- Approved For Release 2001/09/04: CIA-RDP84-0 fers while obtaining from Ci ay about 80 F.B.I. reports on the investigation. He persuaded Petersen not to call five Presi- dential aides?Colson, Krogh, Young, Chapin, and Strachan ?before a Federal grand jury that had begun to take testi- mony on the Watergate case shortly after the burglary ar- rests. They were interro- gated by the prosecutors in a separate room out of the ju- rors' hearing?a most unusual procedure. He asked Petersen how Jeb Magruder had done before the grand jury and says Petersen replied that Magru- der had "made it through by the skin of his teeth." And he says that when he explained the embarrassment that could be caused by linking Donald Segretti to Chapin, Strachan and Kalmbach, Petersen said he did not believe the prose- cutors would need to get into those areas before the grand jury. (The names did come out at the grand jury, but Dean says Petersen told him the question had been asked by a juror, not by Assistant U.S. Attorney Earl Silbert, who had "tried to avoid getting in- to this area.") All this while, Kleindienst was promising that the Justice Department's in- vestigation would be "the most extensive, thorough and comprehensive investigation since the assassination of President Kennedy." Throughout the summer, Dean says, he met repeatedly with both Haldeman and Ehr- lichman, filling them in on what he was learning from the F.B.I. and Justice Depart- ment, carrying messages to and from the Mitchell-Stans- Mardian - LaRue grouping "about how each quarter was handling the cover-up." He says he "checked with Halde- man and Ehrlichman before I did anything." But he says that during this period he was not instructed to carry out an investigation or write a report. The President's first public words on Watergate came at a news conference on Aug. 29 ?and Dean says they left him with a feeling of astonish- ment. The President said Dean "has conducted a complete investigation of all leads which might involve any pres- ent members of the White House staff or anybody in the Government." no one in this Administration presently employed, was in- volved in this very bizarre in- cident. . ? . This kind of activ- ity, as I have often indicated, has no place whatsover in our political process." It was two months before the election. And the President insisted he wanted "the air cleared." On Sept. 15, the Federal grand jury handed down its long - awaited indictments against Hunt, Liddy, McCord, Barker, Martinez, Gonzalez and Sturgis. As Petersen had predicted, Jeb Magruder had escaped indictment, thus cut- ting off the trail to the higher- ups. Late that afternoon, Dean recalls, he was summoned into the Oval Office, where he found Haldeman and the Pres- ident. "The President then told me that Bob?referring to Hal- deman?had kept him posted on my handling of the Water- gate case. The President told me I had done a good job and he appreciated how difficult a task it had been and the Pres- ident was pleased that the case had been stopped with Liddy. . . . I told him that all I had been able to do was to contain the case and assist in keeping it out of the White House. I also told him that there was a long way to go before this matter would end." Dean says the President made several other remarks at this meeting, among them: that J. Edgar Hoover had told him in 1969 that his campaign had been bugged in 1968 and that at some point "we should get the facts out on this to counter the problems that we are encountering"; that he hoped the Watergate trial would not begin- before the election; that he hoped Dean would "keep a good list of the press people giving us trouble, because we will make life dif- ficult for them after the elec- tion." Dean says he left the Sept. 15 meeting convinced that the President was well aware of the cover-up. Some others do not interpret the President's remarks that way. The next problem the White House faced was the hearings on Watergate scheduled by the House Banking and Cur- rency Committee, chaired by Representative Wright Pat- man of Texas. Dean describes a series of discussions on how to stop the hearings with Hal- deman, Stans, Mitchell and John Connally. Ultimately, N this initial Presiden- Dean got from Petersen a let- tial comment on the affair, ter saying the hearings could Nixon's stance was one of total damage the prosecution. With innocence, with some expres- this letter, and heavy pressure sions of outrage: "I can say from several quarters, the categorically that his [Dean's] White House was able, Dean investigation indicates that no says, to maneuver a 20-15 one in tbAppriteieidtEostRaleasee21104A09604nitGIAI?alEiRt84-0 499R000200010002-2 re UM IMO =I NM IM1 MN 1111 MEI INN WM UM 111 =I Men OM OM 111 Compare our prices on NATURAL-ORGANIC VITAMINSSupplements r, All prices POSTPAID! Satisfaction guaranteed or money back. 100 mg. Rose Hips 100% Natural VITAMIN C TABLETS 0 100 for 49 El 500 for 2.20 01.000 for 395 250 mg Rose Hips 100% Natural VITAMIN C TABLETS 0 100 for BO 0 500 for 3.50 01,000 for 625 500 mg Rose Hips 100ci Natural VITAMIN C TABLETS o 100 for 1.25 0 SOO for 5.50 [11,000 for 9 25 Natural VITAMIN E-100 INT. UNIT CAPSULES Cl i00 for 1.10 0 500 for 4.85 01,000 for 895 Natural VITAMIN E-200 INT. UNIT CAPSULES 0 :00 for 1,95 0 500 for 6.75 0 1,000 for 16 50 Natural VITAMIN E-400 INT. 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On Oct. 10, Bob Woodward and Carl Bern- stein of The Washington Post, who had been digging away vigorously, came up with their biggest story yet, beginning: "F.B.I. agents have established that the Watergate bugging in- cident stemmed from a mas- sive campaign of political spy- ing and sabotage conducted on behalf of President Nixon's re-election and directed by of- ficials of the White House and the Committee for the Re-elec- tion of the President." Quickly they followed with stories re- porting that Chapin had hired Segretti and that Haldeman was among five officials au- thorized to approve payments from the espionage funds. These and other stories brought a cascade of denials and denunciations from the President's camp: a "'collection of absurdities" said CREEP; "a senseless pack of lies," said Maurice Stans; "the shoddiest type of journalism," said Ron Ziegler. The denials were largely designed to neutralize 'Watergate as a campaign is- sue ? which they did. On Nov. 7, the President was re- elected with an overwhelming 151 per cent of the popular vote. But by then, the cover- up was unraveling. At 2:27 P.M., Dec. 8, United Air Lines Flight 553 was near- ing Chicago's Midway air- port through drizzle and fog. Instructed to make another approach, the Boeing 737 sud- denly nosedived into a neigh- borhood of one-story bunga- lows a mile and a half short of Runway 31L. Forty of the 55 passengers on board were killed, including Dorothy Hunt, wife of Howard Hunt. The day after the crash, a police in- vestigator, shaking out Mrs. Hunt's purse, found $10,000 in $100 bills. A relative said the money was intended as the initial franchise fee for a Holi- day Inn. In fact, Mrs. Hunt had served for months as a courier of escalating payments to the Watergate defendants. As early as June 28, Dean says, he, Mitchell, LaRue and Mardian discussed "the need for sup- port money in exchange for the silence of the men in jail." Dean says Mitchell, Haldeman and Ehrlichman all instructed 40 Approved For Release him to ask Kalmbach to raise the money. Dean says he called Kalmbach that same day and Kalmbach took the next flight and met Dean at a Washing- ton hotel the next morning. Dean says he told Kalmbach "everything I knew about the case at that time." A week later, Dean says, the Presi- dent's lawyer returned to Washington with the money in a briefcase and later went over the exact payments with LaRue. (The General Account- ing Office says Kalmbach raised between $210,000 and $230,000 for the defendants in the summer of 1972.) BUT the Kalmbach money was not enough. Even before the election, Dean says, Paul O'Brien, a CREEP lawyer on the Watergate case, began receiving messages from Wil- liam Bittman, Hunt's lawyer, saying that Hunt and the other defendants expected more sup- port money and attorneys' fees. After the election the pressures increased. When Hunt called Colson directly, he says, Haldeman and Mitchell authorized payment of $70,000 of the $350,000 kept in Halde- man's safe. The demands reached "the crescendo point," Dean says, shortly before the Watergate trial began Jan. 8. He says Haldeman and Mitch- ell then authorized Strachan to give the remainder of the $350,000 to LaRue. It is esti- mated that between $423,000 and $548,000 was paid out to the defendants. Most of the money was said to have passed through LaRue to Mrs. Hunt and then to the defendants. Dean does not know who got what. But The Washington Post has said that Hunt, Liddy and McCord got $3,000 a month in continued salary and the other four $1,000 a month. McCord con- firms that he got $3,000 a month from July, 1972, through January, 1973, plus $25,000 in legal fees ? all on the condition that he re- main silent about the White House and CREEP involve- ment. Barker says he received $47,000 for bail, expenses and legal fees?but without giving any promise of silence. The largest payments appar- ently went to Hunt, who, ac- cording to Government inves- tigators, was "blackmailing the White House" from June on. Within days of the arrests, the investigators say, Hunt sent a message to Dean say- ing, "The writer has a manu- script of a play to sell." This was recognized as a threat to 2001/09/04 talk and almost immediately payments began flowing to Hunt. Later, McCord says, Hunt threatened to "blow the White House out of the wa- ter" and said he had "infor- mation which could impeach the President." By the start of the trial, Hunt had allegedly received $200,000 (and $72,- 000 more was provided in mid-March). According to Dean, Hunt also demanded and received assurances of Presi- dential clemency. Dean says both Ehrlichman and Colson talked with the President dur- ing the first week of January and that Colson then gave Hunt a "general assurance" of clemency through Hunt's at- torney, Bittman. (Dean says Ehrlichman told him that the same assurance "applied to all" the defendants.) On Jan. 11, Hunt pleaded guilty and told reporters outside the courthouse that he knew of no involvement of "higher- ups." Meanwhile, McCord was getting restless. Convinced that the White House, through the defense lawyers, was pre- paring to paint Watergate as a "C.I.A. operation," he warned his lawyer that "even if it meant my freedom I would not turn on the organization that had employed me for 19 years." Between July, 1972 and January, 1973, he wrote seven letters to C.I.A. director Helms warning him of the plot, the first signed "Jim," the others unsigned. Then, during Christmas week, he wrote a letter to Caulfield which read, in part: "If Helms goes and the Watergate oper- ation is laid at C.I.A.'s feet, where it does not belong, every tree in the forest vvill fall. It will be a scorched desert. . . ." Dean says Mitchell told him Caulfield should contact Mc- Cord and assure him of execu- tive clemency. (Mitchell de- nies this.) Caulfield was out of town, so Ulasewicz called McCord at 12:30 A.M., Jan. 9, and told him to go to a pay phone near the Blue Fountain Inn on Route 355 in Rockville and wait for an- other call. McCorcPwent to the phone in the parking lot of the inn ("Specializing in Choice Steaks?Live Entertainment") and there Ulasewicz read him a message from Caulfield: "Plead guilty. You will get executive clemency. Your fam- ily will be taken care of and when you get out you will be rehabilitated and a job will be found for you. . . ." On Jan. 12, McCord and Caulfield met at the second overlook on the George Washington Parkway above the Potomac and talked : CIA-RDP84-00499R000200010002-2 for a half hour, sitting in Caul- field's car. Caulfield told Mc- Cord he was carrying the clemency message "from the very highest levels of the White House." (Caulfield says Dean told him to use that phrase. When he asked wheth- er he should say that the of- fer came "from the President," Caulfield says, Dean replied: "No, don't do that; say that it comes from way up at the top.") But McCord told Caul- field he had a plan for get- ting his freedom. That fall, he said, he had called the Chilean and Israeli embassies, whose phones he assumed were tapped by the Government. McCord suggested that, by raising the issue of wiretap evidence at his trial, he could pose an awkward choice for the Government: either let the purported embassy taps be exposed or drop the case against him. McCord and Caulfield met twice more, but were unable to resolve their differences. McCord kept pressing for the Government to use the alleged tapping as a means of dismiss- ing his case, while Caulfield kept warning him: "Everybody is on the track but you. You are not following the game plan. Keep silent." Somebody else wasn't fol- lowing the game plan. As the Watergate trial droned on through January, with five of the defendants pleading guilty and witnesses steadfastly denying a Wider conspiracy, Judge John J. Sirica grew in- creasingly exasperated. He be- gan questioning witnesses him- self and urging the prosecu- tion to call others. Finally, on Feb. 2--after Liddy and Mc- Cord had been convicted? Sirica said bluntly: "I am still not satisfied that all of the pertinent facts that might be available have been produced before an American jury." With the trial's end, Dean says, the focus of White House concern shifted to the forthcoming Senate hearings. On Feb 7, the Senate voted to establish a seven-man select committee under Senator Sam Ervin of North Carolina. On Feb. 9, Dean was summoned to the La Costa Resort Hotel, south of San Clemente, for two days of meetings with Halde- man and Ehrlichman, where, Dean says, it was decided that "the White House will take a public posture of full coopera- tion but privately will attempt to restrain the investigation and make it as difficult as possible to get information and witnesses." A chief instru- ment of that obstruction would be John Dean. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 "He was a pilot fish. You know, the little fish who fol- low beside the sharks," says a former colleague. Many of those who have worked with John Wesley Dean 3d over the years recall him as a young man in a hurry?very eager to "please the boss" but not very scrupulous about stealing a march on?or an idea from--a colleague. He always, they say, put his own advancement ahead of any substantive inter- est or belief. And he always had good connections. While at Staunton Military Academy, he roomed with Barry Gold- water Jr. He married Karla Hennings, daughter of Senator Thomas Hennings of Missouri. When he was graduated from Georgetown Law school, he got a job with the Washington firm of Welch and Morgan, whose senior partner was a friend of Senator Hennings (he was dismissed six months later for secretly aiding one com- pany seeking a television li- cense while his law firm was representing another company seeking the same license). The old school tie helped him get a job as minority counsel to the House Judiciary Committee (Representative William Mc- Culloch of Ohio, like Dean, was a graduate of Wooster Col- lege). On the Hill, Dean got to know Representative Richard Poff of Virginia, who in turn knew John Mitchell and helped Dean became Associate Deputy Attorney General. By the time he moved to the White House in 1970, Dean's first marriage had been dissolved; last Octo- ber, he remarried, financing his honeymoon with $4,850 he "borrowed" from campaign funds. Dean and the White House agree that between late Feb- ruary and mid-April he and the President had roughly 21 meetings (sometimes with others present) and about 14 phone conversations. They also agree that Dean and the President discussed the prog- ress of the hearings on Patrick Gray's nomination as F.B.I. di- rector, development of a White House statement on executive privilege and strategy for the upcoming "Ervin hearings." The doctrine of executive privilege ? which holds that communications within the executive branch should be protected from public expo- sure?quickly became one of the White House's front lines of defense on Watergate. Dean is said to feet that Nixon ini- tiated the series of meetings with him, after months in which they rarely saw each other, so that Dean would be covered by executive privilege or the attorney - client privi- lege. The White House has al- leged that "Dean helped in- duce the views on attorney- client privilege and on separa- tion of powers that would have immunized Dean him- self from having to testify under oath." Dean presents a picture of a President fully aware of the cover-up and actively conspir- ing with it. At the first of the meetings, on Feb. 27, he says, the President instructed him to report directly to him on Watergate because Haldeman and Ehrlichman were "prin- cipals in the matter." In subsequent meetings, Dean says, the President con- ceded that Hunt had been promised executive clemency and he said it would be "no problem" to raise the addi- tional "million dollars or more" required to keep Hunt and the other defendants si- lent. Dean reported that he was personally involved in the cover-up and described to the President how the pay-off money was "laundered" and secretly delivered. And he says that on March 21 he told the President that "there was a cancer growing on the Presi- dency," described the perjury, blackmail and extensive cov- er-up, and detailed the com- plicity of Haldeman, Ehrlich- man, Colson, Mitchell, Magru- der, Strachan and Kalmbach. But, he says, "I realized that I had not really made the President understand" because Mr. Nixon seemed "very im- pressed with my knowledge of the circumstances but he did not seem particularly con- cerned with their implica- tions." In subsequent meet- ings that day and the next, Dean says, the President, Haldeman and Ehrlichman continued to plan the cover- up, including a scheme to let Mitchell take the blame. The White House has pre-- sented a different version of these meetings. It says Dean was still actively pursuing the cover-up, withholding vital in- formation from the President and insisting that "the White Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 House was in the clear" with the possible exception of Strachan. On March 21, it says, he presented "a more com- plete, but still laundered ver- sion of the facts and so sur- prised the President that, ac- cording to press accounts of what Dean is saying 'the Pres- ident came out of his chair.'" The White House contends that the President began a vigorous investigation of his own on March 21. Two days later Judge Sirica read in court a letter from Mc- Cord which, among other things, said: "Others involved in the Watergate operation were not identified during the trial"; "perjury occurred dur- ing the trial" on vital matters; "there was political pressure applied to the defendants to plead guilty and remain si- lent." The judge agreed not to sentence McCord until he heard him out?a clear hint that full cooperation could lead to leniency. And he gave five of the defendants reason to talk by temporarily handing them the maximum sentences but promising to review those sentences after three months. (This meant 35 years for Hunt and 40 years for Barker, Mar- tinez, Sturgis and Gonzalez. Liddy, who had remained steadfastly silent, got a flat sentence of up to 20 years.) McCord's revelations blew the cover-up wide open and set off an avalanche of further disclosures and Presidential discomfitures. From then on it was every man for himself as the men involved scrambled to protect themselves as best they could. Some ? notably John Dean?began leaking in- triguing tidbits to the press in hopes that the prosecutors would grant them immunity from prosecution in return for vital testimony. On April 27, alone, Gray resigned as acting director of the F.B.I. after fail- ing to receive Senate confir- mation for the permanent post, and Judge Matthew Byrne, presiding in the Ells- berg trial, revealed evidence of the burglary at Dr. Fielding's office. Three days later President Nixon made his first major statement on Watergate in a television speech to the na- tion. He had moved a consid- erable distance from the stance of outraged innocence at his August press confer- ence. Yet some ambivalence remained. He accepted official "responsibility" for the Wa- tergate events, but he denied any advance knowledge of them and any role in their cover-up. He accepted the resignations of Ehrlichman and Haldeman, but he said he had no evidence of any wrong- doing on their part and de- scribed them as "two of the finest public servants it has beer my privilege to know." He also announced the resig- nations of Kleindienst and Dean, adding to a long parade of earlier departures including Mitchell, Chapin, Mardian, Colson, Sloan, LaRue and Magruder. Flanked by a bust of Lincoln and a photograph of his family, the President took his case to the people with such phrases as: "There had been an effort to conceal the facts both from the public ?from you?and from me." On May 11, Judge Byrne dismissed all charges against Ellsberg and his co-defendant, Anthony Russo, on grounds of "improper Government con- duct." He cited the burglary of Dr. Fielding's office, the wiretapping of Ellsberg, the disappearance of records on the tapped coversations, and the failure to produce exculpa- tory information on time. He did not mention another de- fense complaint: two conver- sations Judge Byrne had with John Ehrlichman during the trial?April 5 and 7?about the possibility of Byrne's be- coming F.B.I. director. On May 22, the President made another major statement, and once again it had some of the elements of a correction. For the first time, he acknowl- edged deep White House in- volvement in the Plumbers' activities and in the subse- quent cover-up. He conceded that some "highly motivated individuals" may have en- gaged in "specific activities that I would have disapproved had they been brought to my attention." And he admitted that "there were apparently wide-ranging efforts to limit the investigation or to conceal the possible involvement of members of the Administra- tion and the campaign com- mittee." But he still denied his own personal involvement or knowledge in all areas except in certain limited "national- security" matters, which he sought to distinguish sharply from Watergate By that time, the many- pronged investigation was Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 fully under way. On May 18, Prof. Archibald Cox of Har- vard was named special Wa- tergate prosecutor. In the same week, the long-awaited Ervin Committee hearings be- gan. In the weeks since, the committee has heard a long parade of witnesses, including Barker, Sloan, Baldwin, Caul- field, Ulasewicz, Porter, Mc- Cord, Magruder, Stans, Dean and Mitchell. It has also heard a memorandum from J. Fred Buzhardt, special counsel to the President, alleging that John Dean was "the principal actor in the cover-up." In the weeks to come, the com- mittee will hear from several major targets of the investiga- tion ? among them, Colson, Ehrlichman and Haldeman ? who will undoubtedly present testimony conflicting with or mitigating allegations made against them. HE densest fog of un- certainty still swirls around the head of Richard Nixon, who finds himself under in- creasing pressure to speak out more fully, release relevant White House documents and even submit to Congressional questioning, Within a few months, he had suffered an epic fall from grace. He had defused the Vietnam War as a national issue, won the plaudits of a grateful na- tion for his historic "voyage of peace" to Peking and Mos- cow?and been returned to office by one of the largest margins of modern times. Now, suddenly, the polls were reflecting a startling loss of public confidence, the once- recumbent Congress was challenging his authority ? and he found himself on the defensive, backing and filling before the outpourings of Watergate. An insistent press and a querulous Congress are ask- ing just how much the Presi- dent knew, how much he cov- ered up. The answer to these questions will largely deter- mine not just the future of Richard Nixon's Presidency but the public attitude toward poli tical campaigns, indeed toward the entire political process. There may be only a touch of hyperbole in the words which Jeb Magruder is said to have addressed to Bart Porter when he learned that the CREEP aide was about to tell all to the prosecutors: My God, you are an ant! You are nothing! Do you realize the whole course of history is going to be changed? ? THE NEW YORK TIMES MAGAZINE/JULY 22, 1973 11 Approved For lialpase 2001/09/04: CIA-RDP84-00499112.2020001000272 HS/HC- Former White House counsel John W. Dean III says he believes that the Nixon administration is Inveighing national securi- ty to force him to give "very limited testimony" in Watergate investiga- tions. Associates of Dean, who was fired by President Nixon after becoming deeply implicated in the Watergate scandal, have offered further details behind his statement yes- terday charging an "ongoing effort" to see that he does not tell all he knows to a grand jury or to the Senate. His complaint inthat statement that someone was trying to put "restrictions" on his testi- mony was meant as a ref- erence to restraints in the name of national security as Well as claims of privi- leged communications with the President, his associates said. These sources said that the stationing of FBI and Secret Service guards to watch over Dean's files at his White House office was behind his complaint that he was being kept from "obtaining relevgnt infor- mation and records." DEAN'S.STATEMENT yesterda y also said there were attempts to influence how federal prosecutors handled his testimony ? a reference, associates said, to what Dean considers to be pressure to deny him immunit y from prosecu- tion. In discussing Dean's suggestion that efforts were being made to "discredit me" or to "get me," associates cited a statement broadcast b y CBS News that Dean did not want to go to prison principally because he was fearful of being mo- lested sexuall y. That is "a lie spread by his enemies," one asso- ciate said. The argument that "national security" con- siderations dictated that data relating to the Water- gate affair should not be given to investigators was used by Dean himself, another former White House aide, Charles W. Colson, has declared. In an interview with FBI agents, made public yes. terda y during the Penta. gon Papers trial in Los Angeles, Colson said that the issue had come up at a meeting with Dean when the y were discussing what he would say about FBI THE EVENING STAR and DAILY NEWS Washington, D. C, Friday, May 11, 1973 E-19 questioning of him on the Watergate affiar. COLSON SAID that he asked what he would do if the agents quizzed him about a bunglary that was related to government at- tempts to probe the leak of the Pentagon Papers to the newspapers. That bur- glary, of a psychiatrist's office in Los Angeles in 1971, has been related to the Watergate scandal because it was carried out by some of the same men convicted of the Watergate break-in. Dean advised him "that If asked, he was not to dis- cuss the matter inasmOch as it was a national securi- ty matter of the highest classification," Colson said. According to Colson's testimony, he received the same instructions from Ehrlichman in March or April of this year. Meanwhile, there were these other developments in the Watergate affair: ? Former Nixon camipaign treasurer Hugh W. Sloan Jr., in sworn testimony released yesterday, said that a number of high Nix- on campaign and adminis- tration officials were aware ? or had reason to be aware ? last summer that the scandal might reach higher in the gov- ernment than was being publicly acknowledged. ? Gen. Robert E. Cush- man, former top CIA aide, who has been cited as the source of authority for the CIA to help equip the men taking part in the psychiatrist's office bur- glary, was preparing an affidavit on his role. Csh- man was scheduled to appear soon before two Senate committees prob- ing CIA involvement, per- haps later today. Aides to the general have been in- dicating the general did not know what the men in the burglary were plan- ning. ? A CIA psychiatrist told Approved For Release 2001/09/04: CIA-RDP84-00499R00020ftsegiators yesterday that 2nolity profile he was or era to prepare on ; Approved For Rpase 2001/09/04 : CIA-RDP84-00499R,40200010002-2 Daniel Ellsberg-, accused of stealing the Pentagon Papers, was the first of its kind ever made on an American citizen. The pro- file was prepared as part of the same Pentagon Papers leak-plugging ef- fort which involved the burglary of the office of Ellsberg's psychiatrist. Former CIA Director Richard Helms is sched- uled to appear early next week to tell what, if any- thing, he knows about the CIA role in the buglary episode. Nixon campgian aide Sloan, in his sworn testi- mony made pblic yester- day, indicated that Mau- rice H. Stans, chief fund- raider of the Nixon cam pgian in 1972, had some inkling of the bug- ging scandal last summer. Sloan recounted how he became suspicious of the large amount of money being given Watergate conspirator G. Gordon Liddy, and asked Stans if deputy campaign director Jeb Stuart Magruder had the authority to approve such disuursemlents. Stans checked with campaign director John N. Mitchell ? also indicted in the New York case yester- day ? who said Magruder did have the authority, Sloan said. HE SAID, "I believe I expressed concern gener- ally (to Stans) about the fact that the totals were mounting up without any knowledge on our part of what, in fact, had hap- pened to our money." Stens replied, Sloan said, "I don't want to know, and you don't want to know." Sloan also said that fol- lowing the June 17 arrests, Magruder asked Sloan to perjure himself at any forthcoming trial regard- ing how much money Sloan had given Liddy. Sloan said he refused to perjure himself ? and did not do so ? and said he began attempting to alert higher-ups in the Nixon Administration about what apparently was going on. But Dwight Chapin, then the President's appoint- ments secretary, brushed him off by saying: " . . . (1) you are over- wrought, and (2) the im- portant thing is to protect- the President, and (3) you ought to take a vacation." He then went to John D. Ehrlichma, then head of the President's domestic , counsel and one of the top presidential advisors, he ? said. "I think I got as far as saying there were funds that I did not know where they went, and there might j be a connection with the km situation. He told me to go "; no further, that he didn't want any of the details, if I had any personal prob- lems I had a special rela- tionship with the White House and they would be glad to arrange anaattor- ney. A 91 "I said, 'That isn't my ?,? concern. I just want you to know there is a problem over there,' and he said his position was that he would have to take execu- tive privilege until aftpr the election in any case.".. Approved For Release 2001,/09/04 : C1A-RDP84-00499R000200010002-2 Approved For Release 2001/09/04: CIA-RDP84-00499R0002000100021-2 THE EVENING STAR and DAILY NEWS Washington, a C, Wednesday, May 16, 1973 WASHINGTON CLOSE-UP Keeping the Burglars Out By FRANK GETLEIN Pet4iaps prematurely, ?? everybody has been draw- ? ing moral lessons from the conspiracy, burglary and 1.? corruption of the Ameri- can political process summed up in the name Watergate. The Rev. Billy Graham, ; for example, thinks the Watergate crimes show ' the need for a great spirit- . "ual revival in America. This is understandable from a professional point of view, Dr. Graham beihg the nation's leading spirit-, nal revivalist, but a more realistic analysis would 'find just the opposite to be the Watergatelesson.. The burglars and other crimi- nals were acting on behalf of and apparently also on the instructions of the most self-consciously holy, spiritually revived, pray- er-breakfasting, God-in- voking White House gang since "Lemonade Lucy" Harrison had the temper- ance ladies in. If Watergate is where godliness has led the holy clowns from the White ?House, this country may s ? not be able to afford a spiritual revival. President Nixon seems to have drawn several other moral lessons: Pay more attention to what I/people are doing in your name; fire people you are deeply convinced are inno- cent of wrongdoing, and, above all, no doubt, don't hire a counsel who isn't ? willing to be a scapegoat. For their part, the Dem- . ocrats must have learned learned a long time ago: When you are running. against Richard M. Nixon, .keep your back to the wall and Our hand on your wallet. No one would sug- gest the President of the United States is a bandit, but he does seem to inspire an excess of zeal in those devoted to his cause: Jerry Voorhis and Helen Gahagan Douglas were but the first in a long line of political corpses found floating with the knives in their backs inscribed "LIMN." The latest vie- tims a that zeal seem to ,be Sens- Muskie, Hum- phrey and Jackson, done in by forgeries in Florida, false and embarrassing phone calls and letters;. bogus orders for large quantities of food, drink and flowers, and, of course, the familiar zeal- ous acts of breaking and entering and burglarizing files. Por the rest of us, the lessons cannot rally be drawn until all the returns , are in, but one fundamen- tal necessity seems clear even this early: We have got, somehow, to get the CIA the hell out of our domestic politics. * The agency has, of course, denied that it had anything to do with the cameras, the red wigs, the bugging apparatus and so on that burglar and ex-CIA agent E. Howard Hunt Jr. bas testified he got from the agency in an agency outpost, a "safe house" maintained for just such ' But even on the record - as already established, the CIA gave us Hunt, McCord and most of their mob from Miami, alumni, with dne exception, not only of the agency but of its finest hour, the Bay of, , Pigs blow for freedom by surreptitious invasion of a , so ereign country. * ' The theory of late 20th century government seems to be that we have to have people like Hunt and McCord on the government payroll to save us from the dread Commies. Fair enough: At the ? moment, however; a more nrgent problem is how to save the Republic from Hunt and McCord and per- haps from the CIA at large. The very least we can expect is a law preventing' graduates of the CIA, like Hunt and McCord, from engaging in political adtiv- ity for a period of years, ; particularly from accept-? ing employment or con- tracts from outfits like the Committee for the Re-elec- don of the President. If retired spooks want to run for public office them- selves, that's fine: There are many constituencies that from time to time feel the need for a trained bur- glar as their man in Con- gress or the city hall. Also, their opponents are fairly. , warned and can hire their own free-enterprise bur- glars to protect them. ' But to have government-, trained burglars in the ? White House as political consultants is now untena- ble and must be stopped by Appkwee193W(Rtii4M82601/80Y8a7b1A-RDP84-00499051000010002-2 , ..:?Approved For Wase 2001/09/64 : CiA-pDP84L0049940200010004 ri" ? , '1'1-1E EVENING STAR and DAILY NEWS Worthington, D. C., Tertsday, May 8, 1973 BY OSWALK SOTINSTON , James R. Schlesinger, the newly installed CIA director, has confirmed privately that the CIA supplied a camera, dis- guises and false docu- ments to Watergate consi- pirator E. Howard Hunt before the 1971 bread-in at, Star.News Staff Writer ? their administration-di- rected probe of the Penta- gon Papers leak, emerged from an internal probe now under way at the CIA, Nedzi was told. Still unconfirmed is Hunt's testimony to the Watergate grand jury that the CIA also gave Hunt, .Liddy and the team of the office of the psychia- ,Cuban emigrees recruited ' trist who had once treated for the Ellsberg burglary ' Daniel Ellsberg, operational assistance, ? Schlesinger, who offered two "safe-house" rendez- the confirmation in a tele- vous points in Washington phone conversation yester- and an untraceable day with Rep. Lucien N. "Ssterile" telephone nunt- Nedzi, D-Mich., chairman ber to of the House Arms Serv- needed. ices subcommittee on in- telligence, acknowledged that Gen. Robert E. Cush- man Jr., then deputy director of the CIA, or- dered the supplies, Nedzi said. call if help was. (Cushman has been or- dered by the, Defense De- partment not to discuss his alleged involvement in the . burglary. He failed to. show up for a scheduled news conference at Rotter- Confirmation that Cush-. dam yesterday, where he man, now Marine Corps is touring Dutch defenses. commandant, authorized An aide announced the clandestine supplies for general would have noth- Hunt and fellow conspira- jag to say. tor G. Gordon Liddy in (The aide said Cushman, had been ordered to. sub- mit an affidavit to the Jus- tice Department on the matter when he returns here) Nedzi, concerned that CIA activities in the case may have violated laws banning the agnecy from domestic operations, is planning a subcommittee investigation? this week. . Sens. Stuart Symington, D- , Mo., and John L. Mc- Clellan D-Ark. also an- nounced yesterday seper- , ate probes of the incident: , The S meanwhile, has offered seperate confirmation of another aspect of the rap- idly developing case. 9ffi- cials acknowledged late yesterday that Hunt in 1971 had free access to ? State Department cables relating to the 1963 coup in which South Vietnamese President Ngo Dinh Diem was assassinated.? , According to a sketchy 'State Department version ' of the incident, officials accedcd to White House s r? equest that Hunt be given unlimited access to the department's fileof cable , traffic to and from Saigon during 1963. Hunt worked in the file room during late Septem- ber and early October ,of 1971, officials recalled, and he was allowed to ? make photo copies of as many cables as he choose. Some of these copies may have provided the raw inaterial for cables Hunt later fabricated, al- legedly on orders from former White House Spe- cial Counsel Charles W. Colson, to implicate Presi- dent John F. Kennedy in the Diem assassination. According to grand jury testimony released in Los Angeles by Federal Dis- trict Judge W. '.'w;atthew ? Byrne Jr., Hunt plowed through several thousand state Department cables In order to vhunt plowed through several thousand State Department cables 7:77 , ? i'.! Approved FOr. Rele.ase.otii/opio4 cikRtip44-04990)ovogp90ocio2-2 .! .1 ? I ? ..1 6.1 in order to "verify the authenticity of materials that had already appeared in the press" in the Penta- gon PASC. The actual regulations under which the CIA has operated are set forth in a series of highly classified directives front successive presidents and national security councils over the years ? from the Truman , administration to the pres- ent. ? Approved-Fcir Release 2001/09/04, : CIA-RDP94-00499R40200010002-2, THE EVENING STAR and DAILY NEWS Washington, D. C., Tuesday; May 8, 1973 These are sometimes collectively referred to as the "secret charter." .1 Glimpses of this charter have surfaced occasional- ,ly, especially when domes- ?, tic operations of the CIA have been heallenged. In a j case involving an Estonian emigre employed as a CIA ( I counter intelligence agent j that reached the Supremo Court two years ago, it was revealed in an affida- jvit signed by Helms him- ;.self that the deputy direc- : 'tor for plans (ie. chief of clandestine operations) has "specific responsibili- ty ? for the conduct of the ifgency's counter intelli- gence operations." As an organizational matter, the support Hunt claims he got from the CIA in the Ellsberg burglary would have been carried 1 out under the cir*uty director of plans, presum- ably under .the heading "counter-intelligence op- erations." Under, the 18-month-old reorganization of the CIA, Cushman, as deputy direc- tor of the' agency, would ' have had unquestioned authority to order the camera aria other.materi- als and probably to offer operational support as well. The burglary of Ellsberg's psychiatrist took place in September 1971, however, some two months before the reorga- nization plan was an- nounced by President Nix- on, so the line of authority may not have been that clearly defined. Helms himself has pri- vately assured Nedzi and other congressional over- seers of the CIA that he had no advance knowledge of the Watergate break-in, and the agency through an official announcement has disclaimed any advance knowledge of the Ellsberg break-in. , In his only publicly rec- orded reference to the Watergate case, Helms, now ambassador to Iran, last February,admitted to members of the Senate \ Foreign Relations Corn ? , Approved rdr Release 2001/09/04 : elkRp17,13400499R00,0200010002-2 ITTC: mittee that both Hunt and Jamcs W. McCord, anoth- er convicted Watergate conspirator, were former CIA agents. He added, in a voice verging on anger: "They had all retired. They, had left. I have no control over anybody who has left. . . they had both been retired at least two years." Despite Schlesinger's limited confirmation that Hunt, himself a former CIA operative in the clan- destine services or "dirty tricks" division of the agency, enjoyed CIA sup- port in the burglary of Ellsberg's psychiatrist, serious questions remain. The distinction between merely supplying equip- ment, reportedly on White House orders, and actually lending operational sup- port could be crucial, ac- cording to informed sources in the intelligence , community. The supplying of equip- ment is viewed as a rou- tine administrative matter that would have carried out without question upon ot'ders of Cushman, who was number two in the agency as deputy (greeter, under Richard M. Helms, the then CIA director. A request for agency cooperation in a govern- ment-wie probe of a na- tional security leak such as the Pentagon Papers would be regarded as "normal administrative stuff" once sources ob- served. "The fact' the White House was trying to find out about those leaks ? ? was hardly something the" agency would re unrecep- tive to." CIA participation in ac-"--. tual support of the burgla-, ry team, through the sup-e, ply of safe houses and a - . secure telephone contact': - such as Hunt described- could be more serious.... " however, since a violation.. ? of federal law might have , been involved. Nedzi and other con- gressmen charged with overseeing CIA activities : . are keenly sensitive to a proviso in the 1947 Nation- al Security Act which ex- pressly forbids the CIA to engage in , domestic "internal security func- tions." Federal courts have sometimes favored the agency with a liberal read- ing of the law, however. The same act empowers the agency to "protect in- telligence sources and methods from unauthor- ized dliclosure," and this clause has been interpret- ed to authorize some do- mestic counter-intelli- gence activity, even though counter intelli- gence is technically the exclusive province of the FBI. Approved For Release 2001/09/04: CIA-RDP84-00499R000200010002-2 BEM'S WORLD " ??? 1913 by NEA Inc 6:644491141". "You didn't have anything to do with Watergate, did you?" 5;rr Iusvile_terigAilgrtved For Release 2001/09/04 : CIA1RDP84-00499pi000200010002-2 A.30 Approved For %pee 2001/09/04: CIA-RDP84-00499R000200010002-2 FRIDAY, lc gtou AN INDEPENDENT NEWSPAPER Watergate and the CIA The rush of events has cast the impression that the Central Intelligence Agency, too, was caught ..up in the crisis of governance, known as Watergate and was somehow despoiled Or suborned. But such a compre- hensive indictment should not be handed down casually. A closer look at the three' Main episodes of Watergate- CIA involvement suggests another atid more complex view. In the first episode, in July-September 1971, the CIA was ,asked by John Ehrlichman to give retired CIA em- ployee Howard Hunt, then identified as a White House security consultant, technical help for an undisclosed mission. The Pentagon Papers had just been published. The CIA's legislative charter gives it "responsibility for protecting intelligence sources and methods from unauthorized disclosures," and in that context the then- deputy director, Gen. Robert Cushman, who had long known Mr. Ehrlichman and who had also served .as personal aide to Vice President Nixon, granted 'tech- nical aid to Howard Hunt. But he was put off by Hunt's manner; the agency, learning that "domestic' clandestine operations" were involved, Cut, the Mint link_ in five weeks; General Cushman quickly informed Mr, Ehrlichman. The burglary of Daniel Ellsberg's psychiatrist took place a month later. At the?' , same time, CIA Director Richard Helms, in the same context of an. ostensible White House investigation of security leaks, ordered up a CIA psychiatric profile of Mr. Ellsberg at White House request. his successor, James Schlesinger, later termed.these missions "ill advised." In the second episode, beginning only six days after the Watergate break-in of June 17, 1972, top White House aides reportedly tried on repeated occasions to induce the CIA to halt an DTI probe into the "laundered" Mexican money that financed the break-in (by having: the. CIA invent a false rationale that the probe would compromise CIA sources); those aides then asked CIA to use secret funds to "go bail or pay the salaries" of Watergate conspirators. By available testimony, the CIA resolutely rejected these entreaties. Gen. Vernon Wal- ters, the then-deputy director and also a former aide to Vice President Nixon, even said he would resign and go to the President before so compromising the agency. ? In the third episode, in early 1973?by then, "Water- gate" was rapidly unfolding?the White House sought to have the CIA receive back (knowingly) the Ellsberg burglary materialstwAii-Filethiekgrilkir Releattei2001/69/04 olnicly refused. I HS/IIC So what do we have? In all three episodes, the White House trampled over the provision of the CIA's charter- specifying that the agency function "under the National Security Council" and it sought to turn the CIA to purposes having at best a tenuous connection to the agency's intelligence mandate?even tile way the White House presented it?and at worst no connection what- soever. In the episodes involving the Mexican money and the receiving back of Ellsberg burglary materials, successive CIA directors and their deputies stood -off fierce White House pressure aimed at foiTing them to violate the spirit and letter Of their charter. In the episode involving aid for a mission whose purpose was at first unknown to the CIA, the agency recovered promptly when it got a better sense of what was going on. The; further question arises of whether Mr. Helms should have reported, either to the President or Con- gress, whatever may have been his suspicion or knowl- edge at various times that something sour was going on. .We submit that no final answer can be offered until ? there becomes available a fuller record not only of precisely what Mr. Helms told Congress last February and March and again in the last few dais, but also of the steps he may have taken to protect the CIA from taint before he was relieved of the agency's director- ship. To establish a kind of base line, we think it ap- propriate meanwhile to recall a rare public speech Mr. Helms gave in April 1971, before any of the known inci- dents had occurred, in which he spoke with feeling and 'sensitivity of the difficult role of a secret intelligence agency in a free society. The CIA operates "under constant supervision And direction of the National Se- curity Council," he said. It assumes only "normal re- sponsibilities for protecting the physical security of our own personnel, our facilities,. and our classified infor- mation . . . In short, we do not target on American citizens." TO the extent that the integrity of the professional intelligence community may have been compromised, we think it necessary to look first to the White House. .It was the men there who in their cavalier abuse of power and their contempt for the institutions a Ameri- can government?even an institntAnAs,sensitive as the : G;itikaT PRO41.049gaN94Pilikurkilid?to compromise and subvert the CIA. Agency Rejected Plea By OSWALD JOHNSTON , Star-News Staff Writer White House aides seeking to enlist CIA aid in covering up the Watergate case last summer tried to get agency officials to pay "scared" and "wobbling" witnesses from top secret funds, appar- ently to hide their connection with the Nixon re- election campaign, a top CIA official has charged. . According to an affidavit by the CIA deputy director, Lt. Gen. Vergon A. Walters, prepared Sat- urday and made available late yesterday, former White House counsel John W. Dean III specifically 0 asked that "covert action funds" be used to pay bail costs and salarieslor the Watergate burglars. ?? Use of funds earmarked for foreign "covert 0 actions" normally requires a directive from the - CO President himself. Dean was "much taken aback," Walters reported, when he was told CIA funds could o not be used for domestic purposes without specific co? approval by Congress. co o ? ACCORDING TO Walters' affidavit, which in most respects paralleled his closed-door testimony m recent days before a Senate committee, Dean made this request June.27, 1972 ? 10 days after a team of five headed by a former CIA agent was dis- covered inside Democratic party headquarters at the Watergate here. During the meeting, Walters said, Dean "reviewed the Watergate case, saying that some witnesses were getting scared and were `wobbling.' I said that no matter how scared they got, they could not involve the CIA because it was not in- volved in the bugging of the Watergate." See CIA, Page A-6 CM:. S uziEgfi:scoaill Continued From Page A-1 Dean then made his quest:cl'Ile then asked if CIAWuld not furnish ail aria-pay the suspects' alariesSithile they were in iii, using covert action Inds fogthe purpose." IN NUKING the re- uest, glar. was asking ie CIArdeputy to draw on top sza. et fund which is pecificiily committed in he CI.gs budget, itself ighly eliassified, to clan- estineolhperations over- CL eas. The cm-eft action fund is nder tae jurisdiction of he dewy director of lans, The agency's de- artmeet of "dirty ricks,Imand is used for uch seget operations as ribing4zandidates or vot- rs in elections and med- ling me violently in the omestit affairs of other iationsgThe 1961 Bay of jigs fr sion of Cuba, the 953 c that restored the ;hah t ntrol of Iran, or he mo tp recent clandes- ine w? in Laos were all ligibleOfor funding from he cov?rt action fund. Und/ CIA operating ?egulatns, set forth in a .eries sg:t highly classified nemorandums handed lown by the National Se- curity Councils of succes- sive presidents, covert action operations and their funding must be cleared by the top-secret "Forty Committee" in the White House. THIS COMMITTEE, named after a numbered National Security Council memorandum, is the suc- cessor to the similarly named "303 Committee." It is composed of repre- sentatives from CIA, the State Department the Defense Department and the Joint Chiefs, and is chaired by Henry A. Kis- singer. It is responsible for approving all clandestine operations by CIA opera- tives, and it carries the express authority of Presi- dent Nixon. Walters rejected Dean's request out of hand. His affidavit continues: "I replied that this was out of the question. It would implicate the agen- cy in something in which it was not implicated." He added, in an evident refer- ence to the Forty Committee. "Any such action by the agency would imply an order from the highest level, and I would not be a party to any such action." He also pointed out that using the covert action fund for a domestic opera- tion would violate another CIA regulation designed to keep the agency, which is governed by the National Security Act of 1947, out of inte-nal security opera- tions. When the CIA spent money for operations in- side the United States, Walters explained, "We had to report this to the Oversight Committees of the agency in Congress." THIS WAS a clear warn- ing to Dean that the White House group he represent- ed, which included H. R. Haldeman and John D. Ehrlichman, could not rely on a CIA cover to hide payments to the Water- gate burglars. It evidently dismayed Dean. "He was much taken aback by this." Walters reports, adding that Dean at length agreed that "the risks of implicating the CIA and FBI in this matter would be enormous." Walters added: "I said that what was now a pain- ful wound could become a mortal one. What was now a 'conventional explosion could be turned into a mul- ti-megaton explosion." Dean's request for cov- ert funds to pay the Water- gate suspects was evident- ly the second part of a White House effort to en- ? list the CIA in covering up the source of funds for the Watergate team's fi- nances. Earlier' according to the 1 Walter's affidavit and to Senate testimony made public* in recent days. Haldeman and Ehrlich- man had tried to order CIA interference in an FBI probe of campaign funds which had been "laundered" through a Mexico City bank. Meanwhile, in a continu- ing probe of CIA responsi- bility in the case. former CIA Director Richard M. Helms faces two commit- tees today: Sen. Stuart ,Symington of Missouri's Armed Services Commit- tee, where Walters made his disclosures earlier this week, and Rep. Lucien N. Nedzi of Michigan's intelli- gence subcommittee of House Armed Services. Helms yesterday report- edly told a special subcom- mittee of the Senate Ap- propriations Committee chaired by John L. Mc- Clellan, D-Ark., that he had been concerned by what White House aides were ordering the CIA to do in covering up Water- gate, but that Helms made no effort to warn Presi- dent Nixon what was going on. Helms, currently ambas- sador to Iran, has been recalled from his post to explain CIA involvement with White House staff operations. He will be on call for further testimony. McClellan said. The Senator said that three White House aides implicated in administra- tion efforts to involve the CIA in domestic opera- tions would be called on to testify: Haldeman, Ehr- lichman and David R. Young. According to Mc- Clellan's account, Helms, in most details, corrobor- ated the earlier testimony of Walters that Haldeman, Ehrlichman and Dean sought CIA interference in an FBI investigation relat- ed to the Watergate case. "Mr. Helms and the CIA . were *seri-oil-sly im- posed upon," McClellan said. "They tried to do as little as they could, and finally refused to do what was required of them." McClellan said Helms was "concerned" when Haldeman and Ehrichman sought CIA interference in an FBI probe of the Re- publican campaign funds which were "laundered" through a Mexico City bank before winding up in the bank account of one of the Watergate conspira- tors. , Helms was likewise aware of a White House request that the CIA pay bail charges for five men arrested in the Watergate last June and pay their salaries. THE CIA director did not, however, try to tell Nixon about it, McClellan said. "He didn't feel he was called on to go to the President. As I understand the facts, he remained si- lent." Helms, as director of Central Intelligence and enjoying enhanced author- ' ity after a 1971 reorganiza- tion of the intelligence community, could repor directly to the Presiden' and the National Securit3 Council. Csi Asked if he woitla havi done the samelicng ir Helms' position, told reporters, "lahink would have ward the President. I woia have come forward if Bhoue a cloud was being ca5: over my agency."Ce McClellan, eve,, refused to criticLAHein directly for his racence "These reques4 wer coming frort tht President's topp men,' McClellan pointecttut. Approved For Release 2001/09/04 Approved For Release 2001/09/04: CIA-RDP84-00499RQ00200010002-2 N T Watergate E STAGE IS SET THE FULL ST Y With charges of scandal spreading almost daily, the time is near at hand for a complete accounting. Investigations long conducted in secret are moving fast toward a public showdown?in the courts and before a Senate committee. FTER MONTHS OF LEAKS, hearsay, un- verified charges and innuendo, the Watergate Scandal is now getting down to the full, official story?told under oath. A trial, seven . convictions and secret investigations have left many questions officially unanswered. The big one: How high in the Nixon Administration does the guilt reach? Powerful forces have been set in mo- tion to get the facts on the record in a bizarre affair whose repercussions have rocked the White House, cast doubt on the credibility of high officials and slowed much important business of Gov- ernment to a crawl. Senate investigation. A select Sen- ate committee headed by Senator Sam J. Ervin, Jr. (Dem.), of North Carolina, .was set to begin taking sworn testimony in public, televised hearings May 17. Those hearings, committee members say, will go far beyond the burglary and bugging of the Democratic Party head- quarters in Washington's Watergate com- plex last June 17 and the alleged high-level conspiracy to conceal responsi- bility for that act of political espionage. The Senators are also to probe charges which have come as fallout from the Watergate case?charges of widespread attempts to corrupt both political and judtelal yr( K2UNNON. Grand-jury probe. A federal grand jury was moving toward expected in- dictments of several men who once were figures in the Nixon Administration. A special prosecutor from outside the Government is to take over that inquiry. Under strong congressional pressure, 4, I, Ill. t*: ? Elliot L. RichardsonjogamsgA eq, 11 MI ,, , 7 that he would naaPiTienYffikHuYeAtlease.2 0 i Soon as he is confirmed by the Senate.,..?."ffip,WHERE IT "?!.`""1.r,k ?Wlda World Photo Elliot Richardson will put case in the hands of a special prosecutor. to the post of Attorney General, to which President Nixon appointed him in the dramatic Administration shake-up announced on April 30. That prosecutor ?working with the grand jury that for eight weeks has been digging into the Watergate case?will have all the au- thority he needs to uncover "the whole truth," said Mr. Richardson. High-level indictments. In a ease separate from Watergate but connected to the Nixon campaign of 1972, two for- mer members of the Cabinet were in- dicted by a federal grand jury in New 'York City on May 10. Indicted were John N. Mitchell, who served President Nixon both as Attorney General and campaign manager, and Maurice H. Stalls, who was Secretary of Commerce, then chief fund-raiser for the presidential campaign. They were accused of conspiracy to Obstruct a fraud investigation in return for a secret $200,000 contribution to the Nixon campaign fund. That story is told in detail on page 20. Pentagon-papers case. In another blow to the Nixon Administration, U. S. District Judge Matt Byrne on May 11 dismissed all charges against Daniel Ells- berg and Anthony J. Russo, Jr., in the so-called Pentagon-papers case. "Improper Government conduct," the judge declared, had precluded a fair trial of the case by the jury. Cited specifically by the judge were what he called these "bizarre events": ? The burglary of a California psy; chiatrist's office in an unsuccessful at- tempt to get at Mr. Ellsberg's record as a patient. At the Federal Bureau n u a o vening aP9405100.402find wiretapped Tops NOBODY NOBODY KNOWS." (continued on next page) 17 , F41.4 I NVESTIGATING WATERGATEroved For Membership: Seven Senators?four Democrats and three Republicans. Democratic members: Chairman Sam J. Ervin, Jr., North Carolina, a onetime trial judge and former member of his State's Supreme Court; Daniel K. Inouye, Hawaii; joseph M. Montoya, New Mexico; Herman E. Talmadge, Georgia. Republican members: Howard H. Baker, jr., Tennessee; Edward J. Gurney, Florida; Lowell P. Weick- er, Jr:, Connecticut. Powers: Under a Senate resolution adopted 77 to 0 on February 7? which created the committee?it has broad powers to investigate the Watergate case and other campaign irregularities. It can subpoena wit- nesses and, with court approval, can grant them limited immunity?insur- ing that their testimony will not be used against them in criminal pro- ceedings. The committee is author- ized to spend up to $500,000, directed to report its findings by Feb. 28, 1974. It has a staff of 39 persons. Chief counsel: Samuel Dash, a law professor at Georgetown University in Washington, D. C., who was cho- sen by the Democratic. majority on the committee. Minority counsel: Fred D. Thomp- son of Nashville, a former U. S. at- torney, chosen by the Republican minority. Public hearings: Scheduled to begin May 17, with other hearings sched- uled May 18, May 22-23-24 and June. 12-13-14. Television cameras permitted. Rules: Witnesses testify under oath. They may be accompanied by their lawyers. The White House may also have its own counsel present when a presidential aide is questioned. If a witness refuses to answer questions under a claim of "executive priv- ilege" or of possible sclf-incrimina- tion, the committee will rule on the validity of such claim. President Nixon has agreed to let White House aides testify, with instruc- tions that they should refuse to answer questions "only in connec- tion with conversations with the President, conversations among themselves involving communica- tions with the President, and as to presidential papers," lease WRAFWAT.IATIQX34-0049 [continued from preceding page] phone conversations by Mr. Ellsberg in 1969 and 1970?although the prosecution had maintained there were no wiretaps. Figures in the Watergate case emerged also in this Los Angeles trial. E. IIoward Hunt, Jr., testified that he and another convicted Watergate con- spirator, G. Gordon Liddy, had directed the break-in at the psychiatrist's office. Ile said the burglary was plotted in the White house, and a camera and dis- guises for the burglars were supplied by the Central Intelligence Agency. This led to a congressional investigation of the CIA. Egil Krogh, Jr., a former White House aide who resigned as Under Secretary of Transportation on May 9, said he author- 913400.1521Cte Director.CIAto succeed 0 John B. Connally, Jr.?who switched May 2 from the Democratic to the Re- publican Party?was made a special, un- paid, part-time adviser to the President. J, Fred Buzhardt, general counsel in the Defense Department, was shifted to the White House staff as special coun- sel to the President, to work on "matters relating to the Watergate investigation." This series of appointments was not expected to end the reorganization of the Nixon command. More big shifts were predicted. But, at least, the biggest holes left by the recent departure (410 Nixon appointees had been filled. Reported a White house aide: "Every move Mr. Nixon has made in reshaping his staff has been calculated to open up more accessibility to the ?Wide World Photo Ervin committee. Seated: Senators Baker and Ervin. Standing: Senators Weicker, Talmadge, Inouye and Montoya. Senator Gurney was not present for this picture. ized the break-in without the knowledge of his superiors after President Nixon or- dered him to push a search for the "leak" of the Pentagon papers. Mr. Ellsberg and Mr. Russo were ac- cused of espionage and theft of the pa- pers, which revealed top secrets about U. S. war policy in Vietnam. New Nixon appointments. President .Nixon, still rebuilding key segments of his Administration shattered by the Watergate affair, made several new ap- pointments to high posts on May 10. James R. Schlesinger, who has been Director of the CIA since January 23, was named Secretary of Defense to re- place Mr. Richardson, who is to be moved from the Pentagon. William E. Colby was promoted from President than there was under his rigid staff system of the past." The White House announced abandon- ment of the "super-Cabinet" system put in only four months ago, in which some Cabinet secretaries doubled as "coun- selors" to the President. Now all Cabinet members will have equal access to the President?and without interference from any :member of the White House staff. Although Mr. Connally will be giving some of the policy-shaping advice that had been handled by II. R. Haldeman and John D. Ehrlichman, the Texan will have no control over who sees the Presi- dent, Both Mr. IIaldeman and Mr. Ehrliclunan held tight rein over presi- dential appointments before their resig- nation under Watergate fire. 18 Approved For Release 2001/09/04: CIA-RDP84-00499R9i9pQR9109A621K1 tEpo__, Mciy 21, 1973 Approved For Rete In official Washington, the imminent opening of Senate hearings and the de- cision to name an outside prosecutor for the Watergate case brought a sense of relief. Expressing sentiments widely echoed, one Congressman declared: "I've been sickened by the welter of accusations, the ugly accumulation of hearsay. I hope that we can now look for orderly sifting of all the charges and countercharges, without regard to rumors and leaks." Irritation with the tactics of some parts of the news media broke out on the Senate floor on May 8. Senator William Proxmire, of Wis- consin?a Democrat. and a persistent critic of President Mxon?declared in a Senate speech that "the handling by the press of the Watergate affair has become grossly unfair to President Nixon." Said the Wisconsin Senator: "When former White House Counsel John Dean is reported throughout this country to have privately told grand-jury investigators that the President was di- rectly involved in a Watergate cover-up, President Nixon is being tried, sentenced and executed by rumor and allegation." Vice President Spiro T. Agnew charged that press reporting of the Wa- tergate case had "trespassed the bounds of propriety." Similar criticisms were ex- pressed by the Senate Democratic Lead- er, Senator Mike -Mansfield, of Montana, and his Republican counterpart, Senator Thigh Scott, of Pennsylvania. Yet it was widely conceded, even by critics, that the press played a key role in uncovering the extent of the Water- gate scandal. "The Washington Post" won a Pulitzer Prize on May 7 for its re- porting of the case. The White House issued a blanket de- nial of Nixon involvement in either the Watergate bugging or its cover-up, and also denied published reports that he had made an implied promise of execu- tive clemency for one of the .seven con- victed Watergate conspirators. The ousted Mr. Dean, who was cited as the source for such reports?and later .denied he was the source?will be one of 20 witnesses scheduled to appear before the Senate committee. He has been of- fered partial immunity protecting him from his testimony being used against him in n court WA In the Pentagon-papers case, there was no implication by witnesses that President Nixon himself had contem- plated burglary as part of the search for "leaks" that he ordered. Yet, that case presented still another scandal for a Nixon Administration al- ready beset on many fronts. All this provides A Fayk'P bb le ffi ground for the ociaT ocee mgs or the. days and weeks ahead. se 20T indictments, nobody other than r4itligri499RQP1120Q0110010134 may be present. WHAT IT DOES The Watergate affair is focusing national attention on a federal grand jury in Washington, D. C., which is investigating the case. What is a grand jury? A grand jury is a special panel of citizens set up not to try people but to decide whether a person should be brought to trial. Its primary function is to protect people against unjusti- fied prosecution in court. How does a grand jury operate? A government prosecutor presents evidence, witnesses are interrogated, and the grand jury then decides if there is probable cause to believe that a suspect has committed a crime. If so, the grand jury then issues an indictment. What is an indictment? ? An indictment is merely a formal accusation, a charge on which the grand jury recommends that the ac- cused should be tried. It is not a conviction. Is an indictment required before any criminal case can be prosecuted? No. But the Fifth Amendment to the U. S. Conkitution requires that "no person shall be held to answer for a capital, or otherwise infamous, crime, unless on a presentment or in- dictment of a grand jury"?except in military cases. That has been inter- preted as requiring a grand-jury ac- tion in all federal criminal cases in which a cOnviction could mean a prison sentence of more than one year. About half the States use a sim- ilar procedure. Other States use a so- called criminal information?a formal charge signed by a prosecutor?in- stead of a grand-jury indictment. How is a federal grand jury set up? It is ordered by a judge, usually at a prosecutor's request. Members are chosen at random from voter lists. A federal grand jury may have 16 to 23 members. The votes of 12 or more members?a majority?are required for an indictment. Is a grand-jury proceeding gov- erned by the same rules as a trial court? No. There are no strict rules. A wit- ness may be asked almost anything. Hearsay evidence is admissible. The aim is to establish only "probable cause" for trial?not to convict. Who may be present at a grand- jury session? Usually, only the attorneys for the government, the witness being exam- seibet/etlee c o_. reporting p cee ings. vvnen tY) grand.. jury is deliberating or voting May a witness be accompanied by a lawyer? No. An attorney may wait outside the room for consultation by a wit- ness, however. May a witness refuse to answer a grand jury's questions? Yes. Ile may claim his constitution- al privilege against self-incrimination. In case of dispute, a court will de- cide whether the claim is proper. A witness who refuses to answer a ques- tion ruled proper can be held in con- tempt of court. What if a prosecutor grants a wit- ness immunity from prosecution? If a witness refuses to talk after receiving immunity, he could be jailed for contempt. Does a suspect have a right to ap- pear before the grand jury? Not an absolute right. But he may be allowed?and can be compelled? to do so. The suspect cannot force a grand jury to hear witnesses be wants to testify in his behalf. Are grand-jury proceedings secret? In most cases, yes. Prosecutors and members arc not supposed to discuss the proceedings outside the jury room. A witness may discuss his testimony outside the jury room, however, un- less restricted by a judge's order. Why this secrecy? The aim is to encourage witnesses to testify without fear of publicity or retaliation and to protect the inde- pendence of the grand jury. Why has the grand-jury system re- cently been criticized? Critics charge that grand juries are sometimes used by prosecutors to con- tiav ii3vestigations, to "rub- er MM. fTjt.ttified accusations, or to intimidate political dissenters. Approved For Ralease 2001/09/04: CIA-RDP84-00499%100200010002-2 Watergate AS NIX 11 ICKS THE glECES Big changes are taking place?with the Pres- ident moving to restore confidence in the White House, seeking to rebuild an Adminis- tration damaged by the Watergate scandal. A sweeping overhaul of the Executive Branch of the Government is now under way as President Nixon picks up the pieces of the Watergate wreckage. Some of the President's closest friends and most-trusted advisers have resigned or been swept out of office. As May be- gan; only a few of their places had yet been filled on a permanent basis. More shifts were foreseen. The Watergate scandal itself kept on spreading. Almost every day a new de- velopment pointed an accus- ing finger at some new vic- tim. Forecasts were that a federal grand jury, when it completes its investigation, will hand down a number of criminal indictments?includ- ing the names of several men who served at the side of the President. Some processes of govern- ment Were slowed as the housecleaning removed key administrators or shifted them fif now jobs, WO heavily af- fected were the White House itself, which lost top members of its staff; the Defense De- partmei it, left temporarily without a full-time chief; the justice Department, put un- der new management; the Federal Bureau of Investiga- tion, with its second Acting Director in a year; and the Environmental ProtikpipriOv Agency, whose administrator was shifted to the FBI. There were omens of trouble for the President in his efforts to win enactment of his legislative program. And the Nixon hope of building a "new majority" to extend his party's control of the Govern- ment was conceded to have been set back. In the President's time of political trouble one bright ray shone through for him: On May 2, John Connally, a for- mer Texas. Governor who had served 18 months in the Nixon Cabinet, switched ?Crockett in "Washington Star-News" 49 ?Wide World Photo from the Democratic to the Republican Party. That story begins on page 26. The Republican Party which Mr. Con- nally joined was riven by dissension. Many Republicans, looking to future elections, were trying to disassociate themselves from the Watergate affair? and all who had any connection with it. Democrats are seizing on the scandal as an opportunity to strengthen their hands in their battles with President Nixon in Congress and with the Repub- licans in the coming elections of 1974 and 1976. All this was in the mind of the Presi- dent as he made a big move on April 30. Responsibility accepted. In a dra- matic appearance on nationwide tele- vision, Mr. Nixon denied personal guilt in the Inirglarization alai bugging of the 'Democratic Party headquarters at the Watergate complex last June. But he accepted "full responsibility"?as the boss?for what the appointees did. Saying 'there can be no whitewash at the White House," he pledged action to purge his Administration of the possibili- ty for such abuses in the future. The full text of the Nixon address begins on page 70. A purge of the President's official family began even before he spoke. Among those resigning were H. R. Hal- deman, the White House chief of staff, and John Ehrlich man, the President's top adviser on domestic affairs. 64tki)jaiNajlied in leaked re- Yuplicated in an at- tempt to cover up the involvement of (continued on next page) Icontinued from preceding page] ' White House aides 4iPPIPISREVI9We The acceptance of their resignations was described by Mr. Nixon as "One of the most difficult decisions of my Broddem. cy," and he praised them as "two of the finest public servants" he knew. There was no such expression of presi- dential unhappiness at the simultaneous departure of John W. Dean III, the White House legal counsel. It was Mr. / MAJOR CHANGES NIXON COMMAND OUT?some top-level aides Richard C. Kleind ienst? At torn II. R. Ilaldenum Chief of Staff. John D. Ehrlichmfm, top ;alviwr to the President. joint W. Dean lega to the President. L. Patrick Cray 111 Acting Di tor of. the Fill. Jeh Stuart 'Magrud Secretary of Ontiplerce, Cordon $trachan, general cow se to the LT. S. Information Agency tonner aide to Mr. Haldeman. IN?Old hands in new jobs Gen. Alexander " tosen int erim chief of the Whin I louse staff, moving from the post o Army Vice Chief of Staff, Elliot L. Richardson, nominated as Attorney Gen end, moving over I om fob as Secretary of ',el ense, William D. lluckelshaus, named as Acting Director of FBI, itavne I)ireetor of 1nvironrrwntal l'rotet'tiOtt Agency, Leonard Garment, name(I actin legit' counsel to the Presiderit, mov ing iron.) post as special constiltan a ks,k, Dean who had been ordered to make the original investigation and report which the President used as the basis for deny- ing for months any involvement by any- one on his staff. Out, at the same time, went Attorney General Richard Kleindienst. Although not personally linked with the bugging, he said he resigned because of his close relations with some persons involved. To replace Mr. Kleindienst as Attorney 18 General?and to take over the Watergate prosecution?Mr. Nixon appointed Elliot Richardson.- An old friend, Mr. Richard- son had already served Mr. Nixon as Secretary of Health, Education and Wel- fare, then as Secretary of Defense. President Nixon described Mr. Rich- ardson as "a man of unimpeachable integ- rity" and said: "I have given him absolute authority to make all decisions bearing upon the prosecution of the Watergate case and related matters. I have instructed him that if he should consider it appropriate, he has the authority to name a special supervising prosecutor for matters arising out of the ease." This idea of a special prosecutor, in- dependent of the Administration, drew strong support in Congress, and Mr. Richardson indicated to several Senators that he would bring in such a man. With the Watergate's criminal prose-. cution placed in new and trusted hands, the President turned to rebuilding the shattered command structure of his Ad- ministration for the tasks of governing the nation that lie ahead. The rebuilding begins. Among Presi- dent Nixon's early moves were these: ? David Packard was tagged as his choice to succeed Mr. Richardson as Secretary of Defense. Mr. Packard, a California industrialist, was Deputy De- fense Secretary 1969 through 1971. ? Ceti. Alexander M. Haig, Jr., was brought back to the White House as co- ordinator of the President's staff, succeed- ing Mr. Haldeman. General Haig's term of service was described as indefinite?perhaps long term. Since January, he has been Vice Chief of Staff of the Army. Before that, he served in the White house as chief deputy to Mr. Nixon's national-security adviser, Henry A. Kissinger, More than faces are changing at the ? White house. Big changes are predicted in the way the White House is run. The immense power that was concen- trated in the hands of Mr. Haldeman is ?UPI Photo 0002-2 General Haig, Vice Chief of Staff of the Army, was brought back to the White House to take the place of H.R. Haldeman as chief of the President's staff. He served earlier as dep- uty to national-security adviser Henry Kissinger. expected to be decentralized. Until the reorganization of the White House is completed, Mr. Nixon's Cabinet officers were instructed to work more closely with these four assistants: Roy Ash, Di- rector of the Office of Management and Budget; Kenneth R. Cole, Jr., Executive Director of the Domestic Council; Ste- phen B. Bull and David N. Parker, spe- cial assistants to the President. Vice President Spiro T. Agnew is to play an increased role in overseeing op- erations of the Domestic Council. The responsibility of top-level contact with Governors and mayors is also being re- stored to the Vice President. The "super-cabinet" that Mr. Nixon set up a few months ago becomes more important now. President Nixon will rely heavily on these men who serve both as department heads and as counselors to the President: Treasury Secretary George P. Shultz, Secretary of Health, Education and Welfare Caspar Wein- berger, Agriculture Secretary Earl Butz and Secretary of housing and Urban Development James T. Lynn. The President told his Cabinet that the National Security Council, under Henry Kissinger, and the legislative-liai- son staff, under William Timmons, will carry on as before. There are to be more meetings of the Cabinet in the future than in the past. Mr. Nixon will count on Cabinet mem- bers for information and advice he used to get mainly from White House aides. Changes in system? The rigid staff system that Mr. Nixon brought to the White house may be a thing of the past. As one aide said: "The staff system is Richard Nixon. If it changes, he has to change?and I believe he will. I feel that from now on there will be less reliance on the staff, more reliance on the presidential coun- selors and the Cabinet." A major aim in all these changes, in the view of informed insiders, is to end what critics have called the "isola- tion" of the President?to ensure that he Approved For Release 2001/09/04: CIA-RDP84-00499R00diOddibtell? REPORT' h1" 14' 1973 Approved For laplease 2001/09/04 : CIA-RDP84-00499U00200010002-2 gets more information from more differ- ent sources than in the past. It is charged that a major reason why Mr. Nixon was so long in moving on the Watergate affair was that his close aides screened him away from information mak- ing the public rounds that he should 'lave received. No matter who eventually fills the White House vacancies, they - are ex- pected to be men with a "more realistic" Atitude toward Congress than the men they succeed. Said one close Nixon associate: "I think the President realizes that he weds people in those jobs who will have little more sophistication?a better un- lerstanding of Washington and Con- ;miss. The capital is a city of compromise. iron just can't have it your way all the . ime. Both Ehrlichman and Haldeman, ilthough devoted to Nixon, did not have in understanding of Washington or :ongress." Some White House compromises with 3ongress are predicted in the weeks head?but not necessarily because of Vatergate. "It's just part of the job of loing business in Washington," as one asider put it. From another insider came his comment: "Nixon cannot afford to let Watergate often his stern stand against high pending. If we permit weakness to .evelop because of Watergate in our .ealings with Congress or with the bu- mucracy or with foreign countries, then re have had it. We might just as well ack up and go home. All the goals we re striving for must be sought just as arnestly as before Watergate." A sampling of opinion of congressional iaders?in both parties?indicates that ie President's "clout" with lawmakers as been diminished by Watergate. Some redict he may lose a few close tests he -ould have won. Yet, it is suggested, the departure of /bite House aides who were never pop- ar with lawmakers might open the way ? an era of better Mat ions, On the President's action to clear up le Watergate affair, many members of ongress?ineluding sonic Republicans? el he did not go far enough. On President Nixon's ability to pick f the pieces and rebuild his Administra- mi, a widely held view in Congress as expressed by one leader in these ords: "Yes, be can?but he'll have to pay ore attention to Congress and he'll have be tough, on prosecuting the guilty the Watergate case." How the lid blew, page 20; key men new jobs, 24; the ConnallApipmafd F ct of President's address, 70; world Ir=lar ff. iVaforitate, 75. INVESTIGATORS TURN ATTENTION TO MILLIONS IN SECRET CAMPAIGN FUNDS EXPLOSIVE NEW disclosures on Nixon re-election campaign funds are widening the scandal erupting from the Watergate case. A rush of sensational developments came early in May. On May 4, sworn testimony of Hugh W. Sloan, Jr., former treasurer of the Committee to Re-Elect the President revealed this: , Mr. Sloan said he destroyed the original records of between 1 million and 2 million dollars in cash con- tributions on orders of Maurice Stans, former U. S. Secretary of Commerce Maurice Stans. His handling of polit. ical contributions comes ,under fire. and finance chief of the re-election committee. The testimony was given in a dep- osition taken in connection with a suit against the re-election commit- tee by Common Cause, a public- interest lobby. The suit demands an airing of campaign contributions made before the new federal election law took effect last April 7. Also on .May 4: "The New York Times" said that Herbert W. Kalm- tributions he handled before the new federal law became operative. Investigators are focusing on three sets of secret funds, according to "The Washington Post." One?linked directly to the Water- gate bugging operation?was a cash hoard said to have been kept in a safe in Mr. Stans's office. It is said to have fluctuated from $350,000 to $700,000 or more. A second account, reported to have contained up to $500,000, was kept in a Newport Beach, Calif., bank, under Mr. Kalmbach's name. The third fund, "The Post" said, amounted to $350,000 kept in a safe at the White House, allegedly under the jurisdiction of H. R. IIaldeman, who resigned on April 30 as Mr. Nix- on's chief of staff. This money, the newspaper said, was shifted from the re-election 'committee to the White House before April 7. The grand jury investigating the Watergate case is attempting to de- termine whether "hush money" for the seven convicted conspirators came from the secret funds. That issue is certain to figure importantly in com- ing Senate hearings. Campaign agent indicted. One way in which campaign money was spent was suggested on May 4 when a federal grand jury in Orlando, Fla., ? indicted Donald II. Segretti, a paid agent of Nixon campaign officials. He was charged with being the author of fake and scurrilous smear letters circulated in an attempt to sabotage Senator Edmund S. Muskie (Dem.), of Maine, in the 1972 Florida presi- dential primary. A federal grand jury in New York is investigating a $200,000 donation to the Nixon campaign by Robert Vesco, a target of fraud charges made by the Securities and Exchange Commission. Mr. Stalls and former U. S. Attorney General John N. Mitch- ell, who resigned as campaign chief two weeks after the Watergate break- in, are figures in that inquiry. On May 2, the Justice Depart- ment accused the re-election commit- tee of "failing to make required reports on a $200,000 contribution." As the campaign scandal grew, ousted White House legal counsel John W. Dean III announced pub- bach, California lawyer who was lie! Ma 4 he hit placed Water- Rekatteao04108104driCtill-BDR-84POOMWM9AIN, -4 safe-deposit has told Government investigators he box because he feared his White destroyed all records of campaign con- House safe might be burglarized. %id Leig,ii WTHE9'L1ITB1iIN"D F F Almost obscured by the White House crisis are the latest details of the Watergate story itself. Added together, they forced the President to act. f WAS A SERIES of rapid, dramatic I developments that moved President Nixon to action in the long-festering Watergate scandal. For nine months after the break-in at Democratic Party headquarters. in Wash- ington's Watergate complex last June 17, it appeared that the bizarre episode might come to a dead end with the con- viction of the seven men arrested in the bugging plot. Indictment and trial had failed to break the silence of the defendants. What was described as a massive probe by the Federal Bureau of Investi- gation under the then Acting Director L. Patrick Gray III shed no public light on whether "higher-ups" were involved. All this time, President Nixon?relying, he said, on reports from trusted aides? continued to absolve publicly members of his White House staff. The McCord letter. Suddenly, on March 23, the lid blew off. On that day, ? U. S. District Court Judge John J. Sirica made public a letter to him from convicted Watergate con- spirator James W. McCord, Jr. The letter charged perjury at the trial of the "Watergate Seven," pressure on the defendants to keep silent and plead guilty, and involvement of other persons. From that day forward there were sensational developments almost daily. But these developments lacked official verification. Instead, as reported in "The Washington Post," "The Washington Star-News," "The New York Times" and other newspapers, they were based on leaks, hearsay, the allegations of unidentified "reliable sources," and other material ferreted out by newsmen. The news stories told of furious in- fighting behind the scenes. "To save the Presidency." It was reported that on March 20?a day after Mr. McCord wrote his letter to Judge Sirica and three days before it was made public?White House counsel John W. Dean III told the President this: "To save the Presidency," Mr. Dean and the Chief Executive's two top assistants, H. B. Haldeman and John D. Ehrlichman, John N. Mitchell says to approve plan to bug he refused Democrats. The Watergate complex. Circled area was scene of the break-in on June 17, 1972. H. R. Haldeman resigned as chief of President's White House staff. John W. Dean Ill was ousted by Mr. Nixon as White House legal counsel. the bugging plot and face the consequences. Meanwhile, Mr. McCord was being questioned in secret session by Senate in- vestigators. Word leaked that he named Mr. Dean and Jeb Stuart Magruder, former deputy manager of the Nixon Campaign Committee, as having known a cover-up, and ?UPI, Wide World Photos John D. Ehrlichman quit post as the Presi- dent's top assistant for domestic affairs. Next, news reports said that Mr. Mc- Cord had implicated John N. Mitchell, former U. S. Attorney General and cam- paign chief. Mr. Mitchell, who had resigned as campaign director two weeks after the break-in, denounced the implication as "slanderous." First casualty. More was to be heard from Mr.. Mitchell later. But first, Mr. Gray became a Watergate casualty. On April 5, when it became clear that because of Senators' dissatisfaction with his role in the bugging investigation he could not be confirmed as FBI Director, the President, at Mr. Gray's request, would have to tell all they knew about of the espionage conTras I:continued on next news page) 20 - U. S. NEWS WORLD REPORT, May 14, 1973 Approved For Release 2001 09/04 : CI -R P84-00499R00020 010002-2 Approved For 13,41 Lea WATERGATE HISTORY [continued from page 20] withdrew the nomination. But Mr. Gray stayed on as Acting Director. On April 14, Mr. Mitchell was sum- moned to the White House for a secret conference. That week-end, there were other der vclopments. At a meeting in his "hide- away" office in the Executive Office Building, Attorney General Richard G. Kleindicnst and Assistant Attorney Gen- eral Henry Petersen told Mr. Nixon that witnesses were changing stories and pointing accusing fingers. It was this information that led the President to announce on April 17 that he had learned of "serious charges" and that he was personally taking over the investigation of possible White House involvement?a probe that had been han- dled from the beginning by Mr. Dean. Mr. Nixon did not disclose the nature of the information. But news stories on April 19 said that Mr. Magruder was ready to tell a federal grand jury that he helped plan the Watergate invasion along with Mr. Dean and Mr. Mitchell? and that Mr. Mitchell had arranged pay- ments to buy the silence of the convicted conspirators. Mr. Dean issued a statement declar- ing that he refused to be made a "scape- goat" in the scandal. Mr. Kleindienst? because of "close personal and profes- sional relationships' with persons against whom allegations were being made?re- moved himself from the Justice Depart- ment's investigation, which was left in Mr. Peterson's hands. On April 30, he resigned as Attorney General. On April 20, Mr. Mitchell testified be- fore the grand jury. He told reporters later that early in 1972 he had attended three meetings at which bugging the Democrats was discussed?one while he was still Attorney General?but that he had refused to approve the plans. Also on that day, news stories report- ed that Mr. Dean was ready to implicate Mr. Haldeman and Mr. Ehrlichman in a cover-up of the scandal. Next day, Mr. Haldeman and Mr. Ehrlichman?who have steadfastly maintained their inno- cence of any wrongdoing?retained a noted Washington trial attorney, John /, Wilson. Side issues. Throughout the hectic course of the Watergate investigations, related but unsubstantiated charges of improper involvement by campaign offi- cials in other activities were headlined. For example, "The Washington Post" reported on April 24 that a grand jury in New York was investitiglia 000 cash contribution to paign by Robert Vesco, target of a fraud 21 1.11`,.. tA rtr tie k? ? 1 MT. -RDP84-004991R,Q90200010002-2 ?Wide World Photo Charges by James W. McCord, Jr., led to explosive developments. investigation by the gecurities and Ex- change Commission. The newspaper said the grand jury was concentrating on? the roles of Mr. Mitchell and Maurice Stans, former U. S. Secretary of Commerce, who was finance chief of the re-election campaign. On April 27, Mr. Gray resigned from his FBI post in the wake of published reports that, after a White House meet- ing with Mr. Ehrlichman and Mr. Dean, he had destroyed documents from the files of convicted Watergate conspirator E. Howard Hunt, Jr. Mr. Gray said that, when the documents were dis- posed of, he was unaware of their nature. The material allegedly included phony State Department cables, fabricated so as to link the late President John F. Kennedy with the 1963 assassination of South Vietnamese President Ngo Dinh Diem, as well as documents bearing on the Chappaquiddick tragedy involving Senator Edward M. Kennedy, in which a young woman was drowned. Another burglary? Still another bi- zarre development came at the Pentagon Papers trial of Daniel Ellsberg in Los Angeles. On April 27, Federal judge W. Ma- thew Byrne, Jr., received a copy of a memorandum from Earl J. Silbert, prose- cutor in the Watergate case. The memo said Mr. Silbert had information that convicted Watergate conspirators E. Howard Hunt, nd G. Gordon Liddy had burglarized Jr.,the Los Angeles office of Mr. Ellsberg's psychiatrist, On May 1, judge Byrne handed to Manse attorney the report of an FBI interview with Mr. Ehrlichman, con- ducted on April 27. The report quoted Mr. Ehrlichman as saying he had hired Mr. Hunt and Mr. Liddy to . investigate the Pentagon Pa- pers matter "directly out of the White House," and that part of that inquiry was preparation of a "psychological pro- fie" of RellqUeiMP? CiAllaliigh1i2R49 learned of the break-in at the psychia- trist's office?which occurred in 1971? after it had taken place and that he in- structed Mr. IIunt and Mr. Liddy "not to do it again." The exodus. Such sidelights distract- ed public attention only momentarily from the Watergate scandal and its still-to-be-answered questions. ,;(.. In letters of resignation on 'April 30, Mr. IIaldeman and Mr. Ehrlichman af- firmed their innocence of wrongdoing and expressed confidence? that they would be vindicated. As the greatly broadened affair head- ed for further grand-jury proceedings and televised hearings before a Senate investigating committee, the spotlight was on Mr. Dean. News stories gave this account of events that put him in the role of star witness: The 34-year-old lawyer?fired from his job as counsel to the President on April 30?was described as having be- come convinced weeks ago that he had been misled by his superiors, Mr. Hal- deman and Mr. Ehrlichman. Mr. Dean was said to have gone to federal prosecutors to tell his story. Within hours, according to the pub- lished accounts, the prosecutors con- fronted Mr. Magruder with allegations that he had committed perjury in de- nying knowledge of the bugging plot, and then received from him confirma- tion of a series of meetings hatching the conspiracy early in 1972. From that point, the news stories said, the grand-jury probe had a differ- ent focus?and new information was ac- cumulated by the President in his own investigation. All of this led to the dramatic actions announced by Mr. Nixon on April 30. But neither the resignations of top aides nor the President's televised ad- dress on the night of April 30 cleared away the Watergate mystery. In its editions of May 2, "The New York Times" quoted Government inves- tigators as saying they have evidence that high-ranking officials of the White House and the campaign committee con- spired to arrange a cover-up designed to obstruct the investigation. Involved, according to "The Times" account, were Mr. Haldeman, Mr. Ehr- lichman, Mr. Mitchell, Mr. Dean, Mr. Magruder, and Frederick C. LaRue, a former White House aide. The sequence of sensational events has set the stage for further revelations through the grand jury, the courts, and Senate hearings. So far, the scandal has been brought before the public mainly through leaks," information from anonymous "sources" hmititti ki story?told under an sprea upon the official record ?is still to come. ? ? : .1 Approved For Raelease 2001/09/04: CIA-RDP84-0049990200010002-2 HS/11C-Ark I THE EVENING STAR and DAILY NEWS Washington, 0. C, Wednesday, May 9, 1973 McCORD MEMORANDUM B ) SEYMOUR M. HERSH New York Times News Service James W. McCord Jr. has charged that he was pressured on two Occa- sions before his trial to say that he and his colleagues were working on a CIA operation at the time of their arrest in the Water- gate break-in. In a memorandum to federal and Senate investi- gators made available to the New York Times, McCord said that at one point Gerald Alch, his attorney, told him that his personnel records at CIA could be altered, if need- ed, to show that he had been restored to active duty McCord retired in 1970 after 19 years of CIA serv- ice. McCord quoted Alch as saying that, James R. Schlesinger, the newly designated CIA director, "could be subpoenaed (to testify at the trial) and would go along with it." AT NO POINT in the document did McCord say who he thought was the source of the pressure. But he said that, by the time the actual trial began in January, "I was complete- ly convinced that the White House was behind the idea and ploy which had been presented, and that the White House was ? turning ruthless, 'and would do whatever was politcally expedient at any one particular point in time to accomplish its own ends." McCord said his refusal to go along with the plan infuriated E. Howard Hunt Jr., .a fellow member of the Watergate break-in team who ,had served in the CIA for 20 years. A CIA spokesman ex- pressed surprise at Mc- Cord's memo but said there would be no immedi- ate comment. Alch declared through an associate that "it would be inappropriate to com- ment at this time because of his attorney-client relationship" with Mc- Cord. Alch is still repre- senting McCord in the criminal case stemming from the Watergate ar- rests. HOWEVER, another lawyer who was involved in the case confirmed that there had been serious discussions among the defendants and their law- yers about the possibility ? of contending that the men had been participating in a CIA mission. The lawyer, who requested anonymity, said. "The general thought was that the CIA would keep a discreet silence. We figured that they wouldn't dare come forth." He added that he "got the impression" that the Committee for the Re- election of the President certainly had no objection to that kind of a defense." In his memorandum, which was dated May 4 and delivered to the inves- tigators Monday, McCord noted: "There had been indica- tions as early as July" that the CRP was claiming Approved For Release 2001109/04: CIA-RDP84-00499R000200010002-2 Approved For liglease 2001/09/04: CIA-RDP84-00499R,(19020001000272 \ THLEsyZolNn,?).Faszinjoc:Av r,49E4is ? that the Watergate opera- tion "was a CIA opera- ,tion." McCord quoted Hunt's wife, Dorothy, who report- edly handled money for the Watergate defendants, after their arrests, as hav- ing said that Paul L. O'Brien, a CRP attorney, had first told her that the break-in at the Democrat- ic National Committee was a CIA operation. O'Brien, who is known to be under investigation by the grand jury in connec- tion with any coverup of Watergate, was unavaila- ble for comment. MCCORD further quoted Hunt as saying on more than one occasion before the trial that he (Hunt) had information in his pos- session that "would be suf- ficient to impeach the President." McCord went on to quote Mrs. Hunt (who died last winter in a plane crash) as having said that her hus- band had delivered a bit- ter letter to Kenneth W. Parkinson, another Re-- publican lawyer, in which Hunt had threatened "to . blow the White House out. , of the water." The threat was apparently made be- cause Hunt was not receiv- ing enough payoff money from the CRP in the months after his arrest, other sources have said. Parkinson, who is also a target of the current grand jury investigation to deter- mine whether there was any obstruction of justice after the break-in, denied any knowledge of a plan to describe the bugging as a. CIA operation. In his memorandum, McCord said that he had become convinced that ' high-level White House of- ficials were trying to get control over CIA intelli- gence assessments and estimates, "in order to make them conform to 'White House policy.'" McCord said that he had become convinced that the White House dismissed Richard Helms as CIA director last fall "in order to put its own man in con- trol." Another purpose, the memo said, was "to lay the foundation for claiming that the Water- . gate operation had been a 'CIA operation," and that Approved For Release 2001/09/04: CIA7RDE7814e1-N01461:0066%5002-2 ,s/Hc- ;rid Approved For liglease 2001/09/04: CIA-RDP84-0049914100200010002.-2 THE EVENING STAR and DAILY NEWS E-19 Washington, D. C., Friday, May 11, 1973 ? terg te t a 61 rice Telephones used by reporters for at least three newspapers were bugged by the Nixon administration over a two- year period begin- ning in 1969, sources have reported. Page A-4. Former White House aide John W. Dean III has complained that "national security" arguments were being used to tr y to stop him from giving full testimony on the Watergate case. However, former White House aide Charles W. Colson has said Dean himself used that argument to prevent disclosures to the FBI about a Watergate-related incident. Page E-19. Atty. Gen.-designate Elliot L. Richardson, testif ying at his nomination hearings, left in doubt the powers he will grant to a special prosecutor. Page A-16. Chairman Sam Ervin of the Senate's Wa- tergate committee has defended his panel's plans to go ahead with its public hearings. Page A-4. The FBI has admitted wiretapping the suburban Mar yland home telephone of a man who had just left a sensitive post with the Na- tional Securit y Council. Page A-2. President Nixon chose William E. Colb y as the new director of the Central Intelligence Agency. The move restored leadership of the CIA to one of the group of professionals who have dominated the agenc y since its begins ning in 1947. Page E-19. \ Former Att y. Gen. John N. Mitchell be- came the second man in U.S. histor y to be charged with a crime after being the nation's top law-keeper. But troubles came to him in politics during the first Nixon administration with the TIT case, and grew from there. See Page E-I9. Approved For Release 2001/09/04: CiA-RDP84-00499R0002000 10002-2 , !TVLIIj',IIUt tiVi.? 14.)1i1 DefyingNixtstis2 THE jowls jiggled. The eyebrows rolled up and down in waves. The forehead seemed seized by spasms. Yet the lips continuously courted a smile, suggesting an inner bemusement. The words tumbled out disarmingly, soft- ened by the gentle Southern tones and the folksy idiom. But they conveyed a sense of moral outrage. "Divine right went out with the American Revolution and doesn't be- long to White House aides," the speak- er said. "What meat do they eat that makes them grow so great? I am not willing to elevate them to a position above the great mass of the American people. I don't think we have any such thing as royalty or nobility that exempts them. I'm not going to let anybody come down at night like Nicodemus* and *According to the Gospel of John. Nicodemus, a Pharisee, came to Jesus at night and asked him about his teachings and his divinity. STAN WAY AN Approvea For Rele whisper something in my ear that no one else can hear. That is not Executive privilege. It is Executive poppycock." With those words, typically skitter- ing from Shakespeare to the Bible, North Carolina's Democratic Senator Sam J. Ervin Jr. was stepping up the rap- idly accelerating tempo, in a showdown over secrecy between the U.S. Senate and President Nixon. If the President will not allow his aides to testify pub- licly and under oath bef9re the Select Senate Committee on Presidential Campaign Activities, Ervin vows, he will seek to have them arrested. That threat is not an idle one. Er- vin, 76, is chairman of the select com- mittee that is investigating attempts to interfere with last year's presidential campaign. That includes the break-tn. and wiretapping of Democratic Nation- al Committee headquarters in Washing- ton's Watergate complex last June. In defying Sam Ervin on this matter, the President is in collision with the most formidable Senator that this proud body could choose to lead its cause. Charm- ing yet fearless, Ervin is the Senate's foremost authority on the Constitution, a former state supreme court justice and one of the few legislators who prefer the hard work of personal research in quiet libraries to the hurly-burly of cloakroom arm-twisting. He has, in a sense, spent much of his career prepar- ing for precisely this kind of fight. The Ervin committee, which has full subpoena powers, also has solid le- gal grounds for contending that White House officials cannot spurn any such subpoenas. Since he hopes to begin tele- vised hearings in about two weeks, the issue is reaching a climax. It could eas- ily lead to the most fascinating Capitol Hill TV drama since the Army-McCar- thy hearings of 1954. Mess. The stakes go far beyond whatever may be discovered about Wa- tergate. Already, the adverse implica- tions of that affair have undermined the credibility of Richard Nixon as a lead- er devoted to rigid standards of old- fashioned morality, to a stern and equal application of law, to an open and ac- countable Administration. Until the Watergate mess is cleared up, Nixon's closest political and official associates ?and the President himself?will be operating under the handicap of a wide- spread and bipartisan suspicion that they have something sinister to hide. Serious charges have been made in testimony before Senate committees and a grand jury in Washington, in statements by FBI agents and convicted Watergate conspirators, and in press re- ports that have not been effectively re- 1111 INRIGHT-MIAMI NEWS cash from secret donors, including one who is under investigation for violating federal laws. They failed to keep the complete financial records required by law. The President's personal lawyer ad- mitted paying a political saboteur, and his official lawyer recommended the hir- ing of one of the Watergate conspir- ators. The FBI was used to gather cam- paign information, and cooperated chummily with White House officials whom it should have been investigating. Last week the Watergate affair claimed its highest-level casualty so far. Nixon reluctantly complied with the re- quest by L. Patrick Gray III that his name be withdrawn from Senate con- sideration as permanent director of the FBI (see following story page 16). Ervin's dramatic drive to clarify all the murky mysteries surrounding Wa- tergate is part of an even broader clash between two branches of Government. The White House and the Congress are locked in a struggle that goes to the very foundations of the Constitution. On a wide variety of fronts, Ervin is leading the challenge to the Executive Branch's expansion of power. Beyond being the chief Watergate prober, Ervin is a key member of a spe- cial Senate subcommittee set up to in- vestigate the President's excessive use of Executive privilege. The subcommit- tee, chaired by Maine's Senator Ed- mund Muskie, will begin hearings this week. Ervin is also chairman of the Sen- ate's Judiciary Subcommittee on Con- stitutional Rights, which is trying to block Administration-supported at- tempts to force newsmen to reveal their confidential sources in judicial proceed- ings. He has proposed a "press shield" law that would protect newsmen who butted. Officials of the President's re- 200410M4n)iGIAgROPUs0040300017/26W1b0t12g2 are subpoenaed at federal and state lev- o reveal their sources SENATOR ERVIN TIME, APRIL 16, 1973 Approved Fonaelmgm MA/14CIP/84ng? Plf?TOPENTIPPAPPPSIM110R9Az? by Watergate last taken alarm. It has decided that it and want the real culprits exposed. Also, many Congressmen disdain such inti- mate Nixon aides as John Ehrlichman, H.R. Haldeman and their assistants, who are often regarded by veteran pol- iticians as arrogant, inexperienced and selfishly protective of the President. Noting that some members of the White House staff seem to be enmeshed in the Watergate affair, one Republican Sen- ator said sarcastically: "It couldn't hap- pen to a better bunch of guys." In addition, Senators of both par- ties almost unanimously dispute Nix- on's claim that Executive privilege pro- tects his staff against congressional inquiry. That idea, unmentioned in the Constitution, rests on the doctrine of the separation of powers between the branches of Government. The thinking is that Congress cannot intrude upon the decision-making process of the Ex- ecutive Branch and thus cannot demand to know the private advice that the Pres- ident gets from his staff. Indeed, Pres- idents have traditionally demanded and been granted this privilege. In his Watergate investigation, Sam needs a constitutionalist?a man of great legal knowledge and judicial tem- perament?and in discovering that fact, it has discovered Sam Ervin." Ervin is no brashly partisan Dem- ocrat seeking publicity by challenging the Republican President. Basically a shy if mirthful man, he has spent 19 years in the Senate without attracting much national attention. His press con- ference last week was only the third one that he has called in all of those years. In many ways, despite his party affili- ation, he is Nixon's kind of Senator. He is probably even more tightfisted and fis- cally conservative than the President. In interpreting the Constitution, he ful- ly meets Nixon's standard of a "strict constructionist." Nixon recently called him "a great constitutional lawyer." No one is more eager than Ervin to go along with a central theme of Nixon's second inaugural address: "We have lived too long with the consequences of attempt- AM ing to gather all power and responsi- bility in Washington." It is precisely because he feels that his beloved Constitution is being tram- pled upon by the President in an un- precedented power grab that Ervin is leading the effort in Congress to regain its rights. He considers the Nixon Ad- ministration "the most oppressive" that he has known, not only in its arrogance toward Congress but in its snooping on individuals, its extension of police pow- ers and its harassing of newsmen. Ervin sees all such activity as violating the Constitution, which he calls "the finest thing to come out of the mind of man." Thirst. Throughout Ervin's long ca- reer he has distrusted what he calls "the' insatiable thirst for power of well-mean- ing men." As he sees it, "the Consti- tution was made to guard the people against the dangers of good intentions. There are mbn of all ages who mean to govern. They promise to be good mas- ters, but they mean to be masters. The Constitution was written primarily to keep the Government from being mas- ters of the American people." Self-effacing and good-natured, al- though never a backslapper, Ervin was chosen by Senate Majority Leader Mike Mansfield to head the select committee because, Mansfield explained: "Sam is the only man we could have picked on either side who would have the respect of the Senate as a whole." Moreover, Ervin does not now have?and never has had?higher political ambitions. It is ironic that liberals, in particular, see Ervin as a heroic figure. Not too many years ago they were gnashing their teeth at his skillful, legal arguments against civil rights laws. ?and in a way it is true. For more than Now Ervin has the broad support a dozen years, he has chaired hearing of not only the Senate's Democratic lib- after hearing on caliapprniveld FightReleasebiDOWN/D4rfa&fhtiRENR44141904 9R000200016002-2 and the erosion of the separation of fives and many Republicans. Nixon's sez powers. Those hearings were conducted cretin handling of thE W?t tflF gli4144 ERfilfhtliFF 10411-1k 11R4 OrPI)M1 or unpublished unpublished information, unless they had witnessed a crime or had per- sonally received a confession. Ervin had modified his bill several times on the basis of testimony before his committee ?an example of how open he is to rea- soned arguments by witnesses. In addition, Ervin is chairman of two Senate bodies?the Government Operations Committee and the Judicia- ry Subcommittee on the Separation of Powers?that are trying to prevent the President from impounding funds. Nix- on ?is claiming the right to withhold funds that have been voted by Congress and thus in effect to determine Gov- ernment priorities regardless of the ex- press wish of congressional lawmakers. Last week Ervin introduced an amend- ment to an unrelated bill that would oblige the President to seek congressio- nal approval before impounding any funds. The amendment passed, 70 to 24. If the amendment is enacted, Nix- on will veto it. The difficulty of over- riding such a veto was convincingly demonstrated last week when Senators failed by four votes to muster the two- thirds vote necessary to overcome Nix- on's veto of a $2.6 billion program to rehabilitate handicapped persons: the first such spending clash of the new con- gressional term. Why, so late in his career, has the Senate turned to Sam Ervin to carry its banner in so many battles? Reports TIME's congressional correspondent Neil MacNeil: "Sam Ervin has been called 'the last of the founding fathers'? STIVZ NORTHUP in turmoil over what to do about the tent in his limited view of federal au- committee hearings, he has attacked the rampaging anti-Communist antics "f thority. Some of his scholarly critics enmpilation by various Government Wisconsin Senato feCii,..n.iestugplApilithaynXr.v6A_Fgpiptiiitywik' 9 cam. .61eg' 6609 Astitp2s2nge of personal and the Supreme c me-aer- seemt fo?fac'R'N'llib Amen ment, whiair 751Aptiferized data on citizens. He has sion ordering the desegregation of pub- provides for due process and equal denounced the Nixon Administration's lie schools. Ervin soon became em- treatment under the law. Ervin now crime bill for Washington, D.C., which broiled in both battles. concedes that, under the 14th Amend- , permits jailing people who are consid- Senator after Senator timidly turned ment, a constitutional case can be made ered dangerous but have not been con- down the thankless task of serving on for dismantling dual school systems, but victed of any crime, as "a blueprint for the committee that would consider he still insists that it provides no power a police state." whether McCarthy should be cengured. to compel schools to integrate. Despite his blunt language when Lyndon Johnson, then minority leader, In pursuing his independent course aroused, Ervin is a compassionate man turned to Ervin because of his back- in the Senate, Ervin has deplored wire- who has conducted his many committee ground as a judge. Ervin served on the tapping by federal authorities but has hearings with courtesy and respect for committee and wholeheartedly advo- shown little .concern about it at state witnesses. The transcripts are replete 'cated censure after hearing the evi- and local levels. He drew the wrath of with phrases like "I am very much im- dence. His first major speech on the Sen- Women's Liberationists by fighting the pressed by your statement" or "1 want ate floor denounced McCarthy for his women's rights amendment to the Con- to congratulate you on the very lucid "fantastic and foul accusations." Ervin stitution, terming it the "unisex amend- manner in which you stated your declared that McCarthy should be ex- ment" and contending that it would de- views." That is partly why Ervin seems to be the ideal Senator to hold those po- tentially volatile hearings on the many ramifications of Watergate. That reputation for fairness was tar- nished two weeks ago, when Ervin was called away to attend the funeral of his youngest brother. In his absence, the in- vestigation almost got out of hand. One of the convicted Watergate wiretappers, James W. McCord Jr., began making sensational allegations of White House involvement. He talked to the commit- tee's staff investigator, Samuel Dash, 48, and to the committee itself. Dash, try- ing to apply pressure on the six other convicted conspirators to also talk, un- wisely called a press conference to re- veal that McCord had "promised to tell everything he knows." Leaks. There were widespread leaks to newsmen about McCord's charges?all of which seemed to be based on hearsay and were so far unsub- stantiated. One committee member, Connecticut Republican Lowell P. Weicker Jr., publicly demanded the res- ignation of Haldeman, the President's chief of staff. Weicker claimed that Hal- deman "probably" knew about an oper- ation of political sabotage against the Democrats that was far broader than the Watergate eavesdropping. The resulting news stories gave Presidential Press Secretary Ziegler a choice opportunity last week to accuse the Ervin committee of "irresponsible leaks of tidal-wave proportions." Add- ed Ziegler: "I would encourage the chairman to get his own disorganized house in order so that the investigation can go forward in a proper atmosphere of traditional fairness and due process." Ervin, returning to Washington, moved to do just that. He protested that the leaks were coming not from his committee but from McCord's lawyers. Nevertheless, with the support of the committee's ranking Republican, Ten- nessee's Howard H. Baker Jr.,* Ervin ordered the committee not to hold any more closed-door hearings. Prospective witnesses would talk only privately to OLIPHANT?THE DENVER POST /A\ 'TO 000 lit! Jim 011101,111411_,11,7v19.1411,1411111 ) ViCelf .ftliF3 cs 911064fi rAMERPA, alk Impounded. pelted because he was afflicted with ei- ther "moral incapacity" or "mental in- capacity." After the Senate censured McCarthy, L.B.J. told Ervin: "You showed that you don't scare easily." Nor did Ervin shy from carrying the banner of Southern states against school integration, expanded voting rights and opening public accommodations to blacks. His arguments were based on a higher intellectual plane than those of most Southern Senators, but this seemed a blind spot in his general devotion to in- dividual rights. He held that the Su- preme Court should never have taken up the Brown case, that it was legis- lating rather than interpreting. He could never see how federal law could force the owner of a hamburger stand to serve - prive women of such present legal benefits as exemption from the draft and freedom from prosecution for non- support of children. Despite his church- going constituency, he has fought at- tempts to permit prayer in public schools. The Constitution, he insists, has wisely erected a wall between church and state. With little fanfare, Ervin has used his chairmanships to advance individual liberties. He inspired the revised Uni- form Code of Military Justice, claim- ing that servicemen were subject to ar- bitrary discipline rather than justice. He pushed through a bill preventing any In- dian tribal council from depriving an Indian of his constitutional rights. Er- vin led a reform of the bail system giv- everyone, on the assumption that the ing judges the power to release suspects seller was engaged in interstate corn- too poor to pay bail but likely to ap- merce. In Ervin's view, busing white pear for trial. He secured passage of a children from neighborhood schools de- bill limiting the use of lie-detector tests prives them of their rights in the vague in screening federal employees. hope of helping blacks. Ervin contended Ervin has exposed the widespread that the Government has no power to surveillance of antiwar groups, black "Besides Ervin, Baker and Weicker, the select e.al- T require such acts. Approved For Relealt1640010090041:0311egiRE08443049WWItt 'osrats Hrman EMo skid Joseph M. n- In a sense, Ervin has been consis- Senators by the U.S. Army. Through toya, and Republican E ward J. Gurney. 14 TIME, APRIL 16, 1973 Approved FotiI and more eager still to have his disclo- sures get out. Some of them have, since he first broke the silence a fortnight ago and started talking to the Ervin commit- tee in secret session; various leaks from his closed-door testimony had him impli- cating Mitchell, Dean and deputy cam- paign director job Stuart Magruder and vaguely mentioning Haldeman. That most of this was second-hand information? based, so McCord said, on what Liddy had told him?did not diminish the em- barrassment it caused the Republicans, and some of the pain was evident in his further appearances last week. He was questioned for several hours in a civil suit stemming from the Watergate break- in and was portrayed by a GOP lawyer afterward as "a highly nervous, upset, emotionally disturbed man." He seemed cool enough going before the Watergate grand jury under a grant of immunity next day, but one source said the early questioning seemed mainly aimed at dis- crediting what McCord had been telling everybody else as hearsay. Bug Central: McCord may tell a fuller story when and if his press conference comes off. NEWSWEEK learned that he was prepared to say . that he had been told that Mitchell cleared the general outline of Liddy's intelligence operation and approved its $300,000 budget. Mc- Cord's story, according to NEWSWEEK'S source, is that Liddy and co-conspirator E. Howard Hunt recruited him for their team in part precisely by dropping Mitchell's name. His assignments, NEWS- WEEK'S source quoted him as saying, were to bug three Democratic nerve cen- ters: the Watergate headquarters, ac- complished on Memorial Day 1972; George McGovern's headquarters, where three ttempts failed; and party offices in Miami Beach's Fontainebleau Hotel Ilerbiock C 1973 Wasning 1/..il a,. al... NATIONAL - ?FAIRS 1/09/04: CIA-RD 019,002-2 UPI Ervin (above), McCord: Chronic leakage during the Democratic National Conven- tion?a mission aborted by the Watergate bust on June 17. McCord, according to NEWSWEEK'S source, is prepared to say he was told that the ill-starred Watergate raid was undertaken for Mitchell?that some docu- ments the raiders had photographed on Memorial Day had piqued Mitchell's in- terest and that he wanted more. (Mitch- ell has repeatedly denied any involve- ment.) McCord insists he doesn't know what was in the papers; electronics, not photography, was his specialty. But he was sure that somebody up there was profiting by his own labors: his daily wiretap logs were condensed and re- typed by a secretary at Liddy's orders. ("Would you do that," NEWSWEEK'S source asked, "unless you were sending them on to higher-ups?") And, by Mc- Cord's account, somebody up there was likewise interested in keeping the Water- gate raiders quiet: he may, NEWSWEEK learned, name a prominent Republican lawyer as the source of money used to induce members of the Watergate gang to remain silent. The prospect of a free-for-all McCord press conference was something less than happy for the Ervin committee. He would, for one thing, compromise his worth as the committee's big-bang, lead- off witness; he might, for another, only further detract from the aura of cool judicial process the inquiry will need to WHIly McNameo?Newsweek the press, eyebrows dancing in practiced delight, and waved a bound volume of his 1971 hearings on the separation of governmental powers?"835 pages, small type." "There is not a syllable in there that lets the President claim this all- encompassing immunity of executive aides," Ervin declared. "That's not exec- utive privilege, that's executive poppy- cock ... The divine right of rulers per- ished in America with the Revolution. per- ished in On the matter of the leaks, Ervin was publicly regretful?"About all I can do is pray the good Lord to give some people the powers of restraint"?and pri- vately determined to plug them up. The committee sustained its worst embarrass- ment yet with the publication of several ill-documented stories that McCord had directly implicated Haldeman?an over- statement compounded when one of the committee's own members, Connecticut Republican Lowell Weicker, demanded that Haldeman quit. Ervin and the com- mittee's senior Republican, Howard Baker of Tennessee, felt impelled to put out a chagrined joint statement that they had no such evidence thus far, and Weicker subsequently agreed. Still, the damage was done, and Ervin and Baker decreed that hereafter any "secret" questioning will be done for discretion's sake by the committee's senior staff?not by the full committee. The Administration was not likely to be appeased by the committee's access of sustain its own credibility. That aura has good investigative manners, nor did it been wanting thus far, and the result last relent during the week from its basic week was to lay the committee investi- position that White House people will not gation wide open to Administration testify in formal session. But the fall of counterattack. Presidential press secre- L. Patrick Gray?a debacle the President tary Ron Ziegler complained that the might conceivably have spared himself leaks had reached "tidal-wave propor- by producing Dean as a witness for the tions" and admonished Ervin to 'get his defense?remained as an object lesson. own disorganized house in order so that Haldeman's visit to an informal caucus of the investigation can go forward in a Hill Republicans late in March was a ges- proper atmosphere of traditional fair- ture of sorts?a token as against a formal ness and due process." appearance on camera and under oath, Senator Ervin was quick to pick up the but a small act of diplomacy i6 neverthe- Rave _0941690g g2n2he left behind was 4 Z : m o cour y manner an coun ys e w er r. on might now be ready that promises to make his hearings the to submit his people to serious inquiry? id?biiitliiiitip8t TV ser,lei of pie tiff ?nd gentle tlitit Torill at Approved Fo?Zeleas WHITE HOUSE CHIEF OF STAFF HALDEMAN the staff investigators until public hear- ings begin. And the chairman ordered the start of those hearings moved up so that they would begin after the Easter recess, which ends April 25. Ervin and Baker took an even stronger step, indirectly criticizing Wcicker. They issued a short press re- lease stating: "In the interests of fair- ness and justice, the committee wishes to state publicly that it has received no evidence of any nature linking Mr. Hal- deman with any illegal activities in con- nection with the presidential campaign of 1972." The chastised Weicker, ad- mitting "I know when I've been zinged," said he had no such evidence against Haldeman?but indicated that he still thought Haldeman ought to quit be- cause "he is chief of staff?and I hold him responsible for what happened." Watchdog. The Ervin orders to hurry up the start of the hearings seemed necessary to keep rumors from running wild, but it shortened the time for careful staff investigation into the exceedingly complex and clouded af- fair. A priority aim of the committee would seem to be to unravel the tan- gled role played by White House Coun- sel Dean. He had insisted on sitting in on FBI interviews with White House per- sonnel, and had asked for all FBI reports, but more as a White House watchdog, it seemed, than in a search for truth. Dean's role seems pivotal, and the Ervin committee may have a tough time finding out just what it was. Last week Press Secretary Ziegler refused to re- spond to a series of questions that TIME put to him about both Dean and the President. Assuming that Nixon had no advance knowledge of the Watergate wiretapping, what did the President do when he heard about it? Did he sum- mon his top aides and ask them about it? If not, why not? Did he rely entirely on Dean to conduct a White House in rvient. Thecipple etplispa e WpR iReAn,2 PRESIDENTIAL COUNSEL JOHN DEAN IN HIS OFFICE AT THE WHITE HOUSE who was involved? If so, why does he not reveal all and spare himself the po- tential embarrassment of having the Ervin committee do so? Those questions go, of course, to the heart of just how much Nixon can be hurt by the whole sordid affair. A sur- vey conducted for the Wall Street Jour- nal by a Princeton, N.J., polling firm disclosed last week that Watergate is arousing widespread concern and is se- riously damaging the President and his party. Clearly, Nixon and his staff are going to have to face up to the con- sequences of Watergate and the man- ner in which the President's re-election campaign was conducted. It is not enough to issue indignant denials and then claim that aides can discuss the matter only in secret or behind the closed doors of grand jury rooms. Ervin is not going to stand for that kind of evasion. For him, the Water- gate investigation is a matter not just of high politics or powerful personal- ities but also of the most profound con- stitutional principles. In a far different context (a criminal case in which Ervin as a state supreme court justice argued to free a convicted man), he stated his first concern. "What may be the ulti- mate fate of the prisoner is of relative- ly minor importance in the sum of things," he wrote. "His role on life's stage, like ours, soon ends. But what happens to the law is of the gravest mo- vestigation? What c Was the President satisfied with what- far more desirable than that of hurry- ever DOH told him or did he question ing RStriate tilher to what hitt? be his it tit I itta - r ocngEntiggit 4.1, ICI S OVA le cc ctili, 1114. 2,1 I le el ? CONVICTED WIRETAPPER McCORD conclude, after a fair hearing, that Nix- on's top aides did not behave illegally or unethically in last fall's presidential campaign. If so, they have nothing to fear from his committee. But if they are not clean, they can expect no for- giveness for sins against the spirit of the Constitution from this persistent libertarian, who declares that "open and full disclosure of the governing pro- cess is essential to the operation of a kuiv&9j the past, vig- ?4=Eglagnii anif concerned about the future, Senator Sam Ervin warns: "Throughout histurV, mint? have in- .Approved For,Velease 2001/09/ Wally McNamee?Newsweek Patrick Gray: 'He read the tea leaves' Haynie?Loulaville Courier-Journal 'Well, some of us can walk on Watergate and some others can't . . . pity . . Watergate Drags Pat Gray Under The proliferating Watergate scandal has cast the Nixon Administration in shadow for nearly a year, and last week it claimed its first acknowledged victim. In a terse, ten-minute telephone call to San Clemente, L. Patrick Gray III asked the President to withdraw his nomina- tion for director of the Federal Bureau of Investigation. His packing-in after elev- en months as acting director had been expected for weeks, and the President, to whom he had become an increasing embarrassment, accepted it with regret but no apparent argument. "Gray read the tea leaves," said one Republican sen- ator when the word got out?and what the tea leaves told him was that his stew- ardship of the FBI's Watergate investi- gation had finally been his ruin. his fall came in the midst of a flurry of name-naming in the Watergate case, and while he was the first Administration higher-up to go as a direct result, few expected that he would be the last. G. Gordon Liddy, the ringleader of the original break-in at Demositic natinnpl headquarters last June, u Hip r stiff-lipped silence even in the face of an extra jail sentence for contempt. But his C2Lle.21_113 11U&(1:11 hait-MIM bugsmith James W. McCord, was threat- ening to go public this week or next with a tell-all press conference. The results, one source told NEWSWEEK'S Stephan Lesher, could be explosive: McCord was prepared to say he was told that former Attorney General John Mitchell himself ordered the celebrated June 17 Water- gate raid. McCord's meet-the-press plan only un- derscored the circus atmosphere in which the scandal has lately become enveloped ?a swirl of fact, leak and innuendo aggravated by the Administration's own reluctance to submit to impartial inquiry. There were some. modest signs of give last week when word got out that White House chief of staff H.R. (Bob) Haldeman had visited Capitol Hill and told a group of Republicans that he had indeed initi- ated a political intelligence-gathering operation during the 1972 campaign? none of it, mind you, illegal. But the Nixonians remained at cross purposes with Sen. Sam Ervin's select Watergate t Ogektiimenf ittor0444soio dential staffers to testify. And the com- mittee was itself painfully embarrassed 144.s1.1,Latt:rat.dfli4 tw kftnn ses:mts,_?_- headlines and drove Ervin to stringent measures to stem the hemorrhage. It was too late to salvage Pat Gray. His withdrawal closely followed a hasti- ly convened secret meeting of the Sen- ate Judiciary Committee, called to "dis- pose of" Gray's nomination at last after six weeks of hearings. Confirming him was no longer among the live possibil- ities. The opposition proposed killing his nomination by postponing action indefin- itely; Gray's friends, in retreat. sought desperately to save him by tabling the whole question till the Ervin hearings run their course perhaps six months from now. Neither choice was tolerable to a man as dedicated to the bureau as Gray ?"The FBI," he said, "is entitled to permanent leadership at the earliest possible time"?and it was quickly clear to him that he had been handed the re- volver, his call to San Clemente fol- lowed; the President shortly thereafter put out a statement praising Gray, term- ing the criticism of his conduct "unfair"- 04Witli.jitacatt 14tewdi.thdrawal had In the end, it was Watergate that dragged Gray under. He provided other tm.akii,, nil. his OO'S-- hi& fMtilrin-OW41 tiff 91.044 hift#1ts th4fiftit tritl tt#FiiarPrItial by uj ta t tOrtto to out' ottwf campaign. But he probably would have White House staffer testify and" in the survived on his winning candor and end assented ,t2Ake,otrAn2g3k0493r84 -new-broom reforms hadklitPiliavBetEURektafiteArgiaWu4 the Democratic headquarters burglary Grapevine Intelligence: The question that fell on his watch barely one and a was whom Mr. Nixon would name in- half months after he succeeded J. Edgar stead. Speculation centered at first on Hoover. Ile had, as it developed, been Assistant Attorney General Henry E. Pe- extraordinarily deferential to the Presi- tersen, head of the Justice Department's dent and his men during the inquiry? criminal division, but Petersen was corn- had taken them at their unchecked word promised by his association with the Wa- and had repeatedly sent raw Watergate tergate inquiry. Others on the list are data around to Presidential counsel John William Sullivan, a former assistant FBI Dean III, the man who had recommend- director who now heads a . Justice De- ed Gordon Liddy to the Committee for partment intelligence unit; Myles Am- the Re-election of the President. brose, another Justice expert on drugs, Gray talked about this with a chatty, and U.S. Judge W. Matthew Byrne Jr. slangy candor that won him friends ex- of Los Angeles, who is now presiding cept where it counted, in the Senate over the Pentagon papers trial, Gray (where he came off as the President's may be left with his Connecticut law too-obedient servant) and in the Admin- practice and, perhaps, a nomination to istration (which tried with only partial the U.S. Court of Appeals. "Forthright- success to shut him up). Pro-forma en- ness, as much as the Watergate, cost me dorsements kept emanating from the the job," he said, "but if I had to do it White House, but the President criticized again I'd handle things the same way." Gray for offering the bureau's raw files Forthrightness, albeit somewhat be- arrinng ihe Water ote conjuraors lasi week, with the notable exception of 994#141q.uht i immunity from e afrFedefrarl- iii" their prosecution, Liddy?himself a law- yer?took the Fifth Amendment in re- sponse to some 30 questions. Among oth- er things, he refused to say whether "any other persons" had participated in the Watergate raid and whether he had received logs prepared by the bugging team from the taps they had planted at Democratic headquarters. Liddy's lawyer said that answering such questions might prejudice his cli- ent's appeal in the original Watergate case, but Federal Judge John J. Sirica thought otherwise. "To give meaning and coercive impact to the court's con- tempt powers," Sirica stopped the clock on Liddy's burglary sentence (from six to twenty years) and jailed him for con- tempt in the interim for the life of the Watergate grand jury?a minimum of eight additional months behind bars. McCord, by contrast, was eager to talk 11111141.111,1111114.11.11/111111111114111111111111111111111111111111111111111111111111111111$11111411111111111111U11111111111i11111111 1111111111111111111111111111111111014111111111111111111111111111111111111111111111111111111111101111111111111111111111111111111111111111111111111111111111111111111111111111111111111:10111111111,11111 11111111 IllllalauIJlIpIIIlrIJIlIplluIpI,ljiIlInr; THE LAUGH-IN AT WATERGATE mprovisation and a certain quickness in the toes?that's the key to the real-estate game. A real-estate man with all his synapses humming can sell houses at the end of an airport runway, peddle office space to no- madic shepherds or make an irresisti- ble resort package out of an aban- doned coal mine. But even by these standards, something special was afoot in Washington last week, where the managers of the Watergate com- plex, site of the decade's most no- torious burglary, were cheerfully ad- vertising the scandal in every way they could?and joking themselves right into a business boomlet. Last June's raid, said Lee Elsen, vice president for sales for Watergate Improvements, Inc., "has made the name of Watergate world-renowned. If anything, it has accelerated our sales and rentals." By way of aug- menting this innate appeal, Elsen ran ads in four Washington and New York newspapers, picturing a giant lady- bug next to the message: "Don't be bugged with the commonplace ... Locate your offices at the Watergate in Washington." The prime space available, as the ads unflinchingly pointed out, is the sixth floor of the office building, which is even now be- ing vacated by the Democratic Na- tional Committee for smaller (and possibly safer) quarters elsewhere. The ladybug ads, said Elsen, brought five inquiries in the first few days. Wally McNamea?Neweweek The laugh-in at the Watergate ex- tends to the lobby of the Watergate Hotel?one of five buildings in the $78 million complex of apartments, offices, stores and hotel?where news- stand proprietor Sidney Kress hands out a leggy black plastic creature, dubbed "Watergate bug," with every purchase. "At first people were so ap- prehensive they were in a state of shock," Kress said. "We thought we'd give 'em a laugh." Other commercial occupants of the complex seem to agree that the scandal has been all to the good. "Five years ago the taxi drivers didn't know where the Water- gate was," said Bob Morin, director of public affairs for the Watergate office of the Society of Real Estate Appraisers. "Now its the most famous spot in the country." Watergate has also become a minor ili/I111111011111111111111111111/111111 111111111111110111111111111t1111111111,11111111111111111111111mm Don't be bugged with the commonplace! This spring, Indulge yourself. Locate your offices at the "Watergate inWashington Kress's bug: Positive realty landmark for tourist buses and show- biz wits. At the Show Palace, a girlie joint on Eleventh Street, the "Water- gate Follies" features "Mystifying Wire-Tap Annie" and Gallic danseuse Gigi ("She has nothing to hide") La- mor. At the Shoreham Hotel's Mar- quis Lounge, comic Mark Russell tells of the morning George McGovern "picked up a grapefruit and got a dial tone." As for the real dial-toners, they can always phone 333-8750 and hear a taped ditty, written by Missouri's Democratic Rep. William L. Hungate and sung to the tune of the Anheuser- Busch beer jingle: "Come, come, come and play spy with me down at the old Watergate." A search for the unamused ends up with residential occupants of the Watergate, who have paid as high as $350,000 per co-op to live in luxuri- ous and supposedly secluded proxim- ity to such GOP biggies as Sen. Jacob Javits, former Commerce Secretary Maurice Stans and occasionally G. Gordon Liddy. "I think it's all much ado about nothing," one lady told NEWSWEEK'S Nancy Ball. "All this at- tention is an invasion of my privacy." .0111111101W....111111111..1,14,4,11111111111111111.1111111111111,111101111111111M1111111111111111111111r11111111111M11.4)1111111111111111111111111111i II II II I Approved For Release 2titillOglOrrCIA2RDP8212170499R00020001171002t2"------------"" ? 22 Newsweek 0 CD' a ' James W. McCord Jr. has -n told a' federal grand jury that 0 he believes that Kenneth W. Parkinson, an attorney for the ? Committee for the Re-election of the President channeled cash payments to the Water- gate defendants in return for ? o silence after their arrest in- side Democratic headquar- ters ; sources close to the case co a say. LThe sources said that MC: New York Tunes News Service 0 -0 CO 0 0 CD CD "73 0 ' 0 0 - o Cord, one of seven men sen- tence to prison for their role in the break-in, further testi- fied that he believed that Parkinson was responsible for "applying the pressure" on the defendants to plead guilty shortly before the trial began in January. Five of the seven did so plead and the other two were convicted. McCORD subsequently con- firmed his testimony in a tele- phone interview with The New York Times, but refused to provide further details. The sources noted, howev- er, that McCord had based much of his grand jury _testi- mony on hearsay evidence. - For example, they said, he acknowledged that his basic invofmzgion z oug Parkin- son's role in funnelling money ; and advice to the men had been told to him by Mrs. Dor- othy Hunt, the deceased wife of a convicted Watergate par- . ticipant, E. Howard Hunt Jr. He named Mrs. Hunt as the conduit for the money. . Parkinson, a member of the Washington law firm of Jack- son, Gray & Lanskey, cate- gorically denied making any cash payments to Mrs. Hunt. "That's absolutely false," he said during a telephone interview. "I've never met Mr. Hunt or Mrs. Hunt and I've never met any of the oth- er defendants. I've never handled any money myself." THE LAWYER said that he had not been connected with the Republican re-election campaign in any way until a few days after the Watergrate break-in, when he was re- tained to represent the Re- publicans in a civil lawsuit filed by Lawrence F. O'Brien, then chairman of the Demo- cratic National Committee. Justice Department sources said the government was now considering whether the re- election committee might have actively worked to ob- struct justice by, in effect, bribing the Watergate defend- ants. ? In January, Frank A. Stur- gis, one of the Watergate de- fendants, said that at least four of the five defendatns rmay were still being paid, but would not say who was supplying the cash. NEWSWEEK magazine, meanwhile, quoted unnamed sources yesterday that Mc- Cord is ready to tell the press soon that former Atty. Gen. John Mitchell ordered the raid on Democratic National Committee headquarters ? and why, the Associated Press reports. Newsweek said that if Mc- Cord carries out his plan to hold a news conference, he will say that the men who re- cruited him to carry out the wiretapping in Washington's Watergate complex = G. Gordon Liddy and E. Howard Hunt ? did so in part by drop- ping Mitchell's name. Mitchell has repeatedly denied having any part in the June 11 bugging and burglary at the Watergate. Approve Ze+efese-20&+#09004-1-ebt-RDPett=004,949002otitrrutaii4 Shift Sought Of Ca Role To PeitaLown By Michael Getter , wi.onagton Pon SIAM Writer One of the military's top- ranking intelligence officers has called for a reassertion of the military's dominant role over civilians in the critical business ' of estimating na- tional security threats to the United States. The case for giving this re- sponsibility to the Pentagon ?rather than the Central In- telligence Agency (CIA) and other civilian-dominated intel- ligence agencies?is laid out in a highly unusual article ap- pearing in the April issue of Army magazine. The article is by Army Maj, Gen. Daniel- 0. Graham, cur- rently deputy director for esti- pates in the Pentagon's De- fense :Intelligence Agency (DIA). Graham is scheduled to Move over to the CIA on May 1 to join the staff of its new director, James 'R. Schle- singer., ? Thus, the appearance of Graham's article in public could indicate that at least part of his new job at the CIA will be to help bring about the return of a major portion of the highly important intelli- gence estimating job to the Pentagon. The estimates of military threats are a major .factor in planning the Penta- gon's annual budget and in the course of U.S. foreig While Graham's article re- flects his. personal judgment, U.S. defense officials say the appearance of the article at this time "was not acciden- LIMA" implying that It had an official ()toy. Graham's pending transfer to the CIA has prompted con- cern among some civilian in- telligence officials. They fear that the critical annual Intelli- gence estimates on such things as Soviet missile (level-. See ARMY, Al, Col. 1 ? - HS/HC- livansirel.'s of CIA Role Sought ? ARMY, From Al omen's, for example, might take:on an ,even harder line. Graham argues, however, that the job of judging and de- scribing the various military threats the United Slates might face properly belongs to the military. And, he states, it was the military's own fault.? through "a series of had over- estimates later dubbed the bomber gap, missile gap and megaton. gap"?that military credibility was shaken and the principal job of figuring out what the Russians and others were up to gradually was won over by the CIA and other agencies. But in the past three years, he says, the new Defense In- telligence Agency has "come a long way since the missile Ile argues that the quality of military analysis has now improved considerably and that most, though not all, of the military men who use in- telligence have learned not to bend it for their own self-in- terest. or force intelligence an- alysts to do that. "To .sum up," he writes, "I think that the time is ripe for the-military profession to reas- sert its, traditional role in the function of describing military threats to national security." In a key statement that may foreshadow some reduction in . the CIA's estimating role in favor of. ? the Pentagon, Gra- ham writes: "While there will always he a legitimate reason for inde- pendent judgments from out- side the Department of De- fense! on. Issues of critical im- portanee to national decision- makers, there is no longer a need, in my judgment, to du- plicate the Defense Intelli- gence, Agency's efforts in otherageneles." ThiliOblint. the article, the two-star general is sharply critical of the military's past history of usually describing the threat to U.S. security in the worst or scariest ' terms. Not only did it produce scepti- cism In government, forcing officials to turn to other intel- ligence agencies, but it actu- ally hurt the military in other ways, he writes. case estimates can be used to squelch military programs just as quickly as to support them." In other words, he ar- gues, overestimating the So- viet Union's missile capabili- ties can prematurely kill off U. S. projects by leading offi- flak to discount the estimates entirely. The inflated intelligence es- timates . also raise problems for the strategic arms limita- tions talks where, be says, "the very, real' possibility" ex- ists of trading off actual U. S. capabilities against those of an enemy that exist only on paper. Graham also criticizes the technique of assessing only Soviet capabilities rather than Intentions as well. "For example," he says, "since World War lithe Sovi- ets haye never, to our knowl- edge, deployed forces or fielded hardware as ...ast as their total capability permit- ted. To estimate that. they would do so with regard to some weapon system ... in the future would make little sense." F kit Ifit figltiffirgallit -RDP84-00499R000200010002-2 By BARRY KAI,B St ar-News Staff Writer Watergate conspirator James W. McCord Jr. says he has tape recordings of some conversations he had during 1972, and he offers some indi- cation they might include ref- erences to the Watergate bugging or some other illegal activity. lie also indicated that it ? was John W. Dean III, the White house counsel, who cleared him for his job as security chief for the Commit- tee for the Re-election of the President. ? He made these assertions last Tuesday while giving a sworn pre-trial statement, or "deposition," in connection with Watergate civil lawsuits. The statement was made to a lawyer for the Committee for , the Re-election of the Presi- dent, with McCord's own law- yers present. p--s,Hc_fo / A transcript of that partial- ly completed deposition was made available yesterday. McCord is scheduled to com- plete the deposition some time next week. ON THE ADVICE of his attorneys, McCord refused to give any further details on the tapes he said he had in his possession. One of his attor- neys, Henry B. Rothblatt, explained, "We have reason u.??:?..), ti to believe that any tape re- cordings that were taken might have been in violation of some statute. . ." However, McCord has since been granted immunity from further prosecution for any- thing relating to the Water- gate affair. lie was convicted at a January trial of conspira- cy, burglary and illegal V eavesdropping for the inci- dent. When the deposition I resumed, he will be free to answer questions about the tapes because of the immuni- ty grant. His attorney, Rothblatt, could have been saying that the tapes themselves would reveal illegal activity, or he could have been saying that the act of making the tapes was illegal. . If, for example, he had rec- orded a telephone conversa- tion without telling the other party the conversation was being recorded, the taping would have been illegal under Maryland law. If he had done the same thing while both parties were in the District, however, it would not have been illegal. Federal law, which prevails here, allows one party to a conversation to record a con- " versation even if the other party does not' knpw it is being recorded. Ft , V ? IN TESTIMONY before the Senate's Watergate investi- gating committee last week, McCord reportedly alluded to wiretaps other than that placed in Democratic Nation- al Committee headquarters during the bugging last spring and so far undisclosed. He refused at that time to discuss the matter further, because he had not yet been granted immunity. It is possi- ble that he was referring to the newly disclosed tape re- cordings at that time. During his deposition, Mc- Cord made a number of other assertions: ? He said he was initially in- Approved For Release 2001/09/04 : CIA-RDP84-00499R00020001 for the job as secu- 06r2d ity ief for the re-election committee by John Caulfield. a White IInnse ? it 11 ? ai ri z a! cl th ty Ii cc th at JL D. th er ly ev WI thi tli( re; .th; in re fez_ tic- or he rue ,di- ite al it he ho ,. security chief fur the Cominit- tee for the Re-election, of the , ? President. Approve He made these assertions last Tuesday while giving a sworn pre-trial statement, or "deposition," in connection with Watergate civil lawsuits. The statement was made to a lawyer for the Committee for, the Re-election of the Presi- dent, with McCord's own law- yers present. tr.z4e4i.f.pt et that partial- ly core"'eted deposition wa,s to believe that any tap, re- ' McCord's statements hid'. 11#0 6PV410314 2 ON ? Gilt was Dean, 'V -61f ield, who ulti- Cgrftibtkat OM" thl . erg plete the deposition some time next week. ON THE ADVICE of his attorneys, McCord refused to give any further details on the tapes he said he had in his possession. One of his attor- neys, Henry B. Rothblatt, explained, "We have reason of some statute. . ." However, McCord has since been granted immunity from ? further prosecution for any- thing relating to the Water- gate affair. Ile was convicted at a January trial of conspira- cy, burglary and illegal eavesdropping for the inci- dent. When the deposition resumed, he will be free to answer questions about the tapes because of the immuni- ty grant. His attorney, Rothblatt, could have been saying that the tapes themselves would reveal illegal activity, or he could have been saying that the act of making the tapes was illegal. ? ' If, for example, he had rec- orded a telephone conversa- tion without telling the other party the conversation was being recorded, the taping would have been illegal under Maryland law. If he had done the same thing while both parties were , in the District, however, it would not have been illegal. Federal law, which prevails here, allows one party to a conversation to record a con- versation even if the other party does not' knew it is being recorded. IN TESTIMONY before the Senate's Watergate investi- gating committee last week, McCord reportedly alluded to wiretaps other than that placed in Democratic Nation- al Committee headquarters during the bugging last spring and so far undisclosed. He refused at that time to discuss the matter further, because he had not yet been granted immunity. It is possi- ble that he was referring to the newly disclosed tape re- cordings at that time. During his deposition, Mc- Cord made a number of other assertions: ? He said he was initially in- terviewed for the job as secu- rity chief for the re-election committee by John Caulfield, a White House aide who was responsible to White House counsel John W. Dean III. Caulfield, McCord said, told him at their initial meeting in mately cleared him for the job, and sent him on to meet with re-election officials. .Dean was reportedly named , by McCord during the Senate hearing as someone who had .advance knowledge of the Watergate, operation. The White House has denied that Dean was in any way in- - volved. IT WAS ALSO Dean, ac- cording to various testimony and sworn statements relat- ing to the case, who brought convicted Watergate conspir- ator G. Gordon Liddy to the? White. House from the Treas- ury Department in mid-1971, and who later recommended Liddy for job as counsel to the re-election committee. ? McCord said there "have been threats, bomb threats, against iny family. . . There have been other forms of liar- rassment. We have had to change telephone numbers for that reason. And for the safe- ty and security of my family, I have stated, for example, in court that we fear retaliation. My family fears for its life." ? As he was about to sentence ? the seven Watergate conspir- ators on March 23, Chief Judge John J. Sirica of U.S. District Court read a letter McCord had sent him earlier that week. The letter said, among oth- er things, that McCord's fami- ly feared for his life if he told everything he knew about the Watergate affair, and that while he was not afraid "to the same degree," he never- theless did fear some sort of retaliation. , The deposition statement Was the first public statement .that has gone toward explain- ing that fear, but still does not reveal from whom McCord fears this retaliation. McCord said in his deposi- tion that one of his duties at the re-election unit was the protection of Mrs. Martha Mitchell, wife of the former attorney general, John N. Mitchell. McCord said she - was from time to time "worried about not only her personal security ..1 but also about bugging operations against her." September 1971, "Do you have , rid...testified all day Approved For Release 2001/0 9/04ajtVittb_nreitin ung that , lograp y, some ung k Are the Water- that I could send to John gate grand jury. Ile is sched- Dean, because I work for uled to return at 1:45 p.m. 11*- I McCord Gets Immunity, Is Talking By Carl Bernstein and Bob Woodward Washington Post Staff Writers Civicted Watergate con- spirTtor James W. McCord Jr. was5-ranted immunity yester- dayarom further prosecution, cleang the way for him to disc9Zise whatever knowledge ' he hss of illegal political espi- onat activities to a federal grawil jury, a Senate investi- gati committee and the pre S rtly after the immunity hadateen conferred by Chief Jud a John J. Sirica of U.S. DistZ.ct Clatirt, McCord began ansaoring questions before the -lbarne grand jury that in- dictVd him in the Watergate conferacy last Sept. 15. Sing that "the story shoOd be told" publicly about the ClVatergate bugging and pertgps other illegal activi- ties'aIcCord told reporters he wolibt meet with them some timoDnext week in an on-the- recti press conference. Mord is also expected to be early witness in public heags held by the Senate's seleR committee investigating the aVatergate bugging and otheR political espionage and sabirage activities. Ie.: closed-door hearing be- fore5he committee last week, Mcqlrd said his superiors in the tgonspiracy told him that high presidential aides had ad- vance knowledge of the hug- nng Democratic headquar- ters. However, he invoked his Ffth Amendment right not to answer the senators' questions al)(;ut additional illegal activi- th he may know about. osterday morning, McCord appeared before the Water- gate grand jury and again in- voked the Fifth Amendment, this time in response to such questions as whether he had attempted to plant electronic bugs in Sen. George Mc-. Govern's campaign headquar- . which McCord told the Judge :that he knew of "perjury" at :the Watergate trial. "political pressure" on the defendants to plead guilty and remain-silent ! and the involvement of others in the Watergate operation. Three of 3,IcCord's co-Con-' ? spirators?former White House' j consultant E. Howard Hunt ' 1Jr., Virgilio R. Gonzales and , Frank Sturgis?also appeared. yesterday before the grand jury, which reopened its in- ? quiry last week. ters. At the request of the prose- cutors in the Watergate case, he was taken before Judge Sirica for a brief hearing ,in which he was granted immu- nity from further prosecution and ordered by the judge to answer the grand jury's ques- tions. McCord was still before the grand jury early last night and is expected to be recalled today. During the immunity hear- ing, Assistant U.S. Attorney Seymour Glanzer read to Judge Sirica a list of -nine questions McCord had refused to answer, most of therm relat- ing to attempts to bug Mc- Govern's offices. Sirica, who was openly crit- ical of the prosecution's pres- entation during the Watergate trial, asked: "Are those all the questions you're going to ask him?" "Oh no; Your Honor," re- plied Glanzer. Following the hearing, Mc- Cord said he felt "relieved" at the grant of immunity and?in answer to a question?said 'he, obviously hoped his coopera- tion with investigators would bring him a lighter sentence for his role in the Watergate, !conspiracy. ! Judge Sirica has postponed sentencing McCord until June: 1.5. after receiving a letter in f McCord's principal superior , in the conspiracy, former White House aide G. Gordon' Liddy, refused to answer ques- tions before the panel?even after being granted immunity; ?and was sentenced last Week! to an additional incarceration' by Judge Sirica. Liddy, described by the; Watergate prosecution as the:gore the grand jury last year. _ "boss" of the conspiracy, ap- .that he attended a February,:, [ pears to have been the princi- 'meeting in Mitchell's office at,; pal source of McCord's asser-,which Liddy, Dean and Mitch 7 ,, tion to Judge Sirica thatlell were also present, but de-, "purjury"occurred at the trial nied that the bugging was dis-_,?-: and that persons not indictedtcussed. ? in the case had prior knowl- McCord, in his testimony be-f edge of the bugging of Demo-fore the Senate committee, ?of-,7_, cratic headquarters. ri fered only hearsay evidence--- In his testimony to the Sen-P statements purportedly made, ate's investigating committee,'hy Hunt, Liddy and others?to?il McCord said he had been told;support his assertions that the by Liddy that the plans and;!presidential aides had advancet.? budget for the Watergate op-knowledge of the.bugging. : , eration were approved in Feb- g Accord in g to S e n at e...7. ruary, 1972, during a meetinWourdes, he has no documen-t-is iri the office of then-Attorney-tary evidence to support: hisi:t General John N. Mitchell thatjtestimony. . ., . .." bo was also attended by presiden-r, However, the same sourcescl tial counsel John W. Dean IIIs aid McCord provided.thezq and former presidential assist- 'committee with several impor- ant Jeb Stuart Magruder. tant leads that, if accurate;:r. According to reliable -.could corroborate his hearsay 't' sources, Magruder testified be- (knowledge. ! .;:.1: co ? 0 0 CD 0 0 0 0 0 0 HS/HC-iep Pr 111/ ar AM, Approved For,agolease 200 f ILD SECITM, w .e.V.Mignrr The Democratic National Committee is moving from its Watergate complex of- By Charles Del Vecchio ?The Washington Post fices, protected (as shown on sign at center right) by "Security Inc." 'Watergate Liddy' Finds Legal 'Career' lehind Bars Bry William Claiborne Washington Post Salt Writer Watergate conspirator G. Gordon Liddy, who was in- jured in a fight with an- ? other prisoner at; the D.C., jail last week, has been pro- viding legal advice to fellow? ? inmates, court sources said yesterday. Since the March 26 alter- cation, in which he suffered a cut on his ear and a bruise on his nose, Liddy has been involved in no further inci- dents with other prisoners, jail officials said. Superior Court sources said Liddy has assisted some prisoners at the jail in pre- paring "pro se" motions in pending criminal cases. Such documents are rou- tinely filed in the court by prisoners in their own be- half and usually seek dis- missal of charges on-techni- cal grounds. Sources said ?that Liddy, who reportedly has been nicknamed "Watergate Liddy" by some fellow pris- oners who have sought legal assistance, has become more accepted by the inmate pop- ulation as a result of his law background. He was a law- yer before_his conviction for APPRMICinFRie rtiViii@fiteha eavesdropping at Demo- G. GORDON' LIDDY . nickname: "Watergate" day that Liddy is confined in a medium security wing of the cenfury-old jail and is living alone. The wing traditionallY has been occupied by sentenced offenders who serve their terms at the jail instead of Lorton Reformatory, an by prisoners who are assigned to regular work details, such as the prison kitchen. ? The doors to the rooms can be locked by inmates for privacy. However, pris- oners in that section are permitted to leave the doors ? open and move about the prison, to eat in a common mess hall or watch televi- sion in a recreation room. According to Deputy Supt. Alphonse Washington, Liddy cratic National Committee is receiving "no special treat- headquarters here. ? ? ment" at the jail. Liddy was sentenced by Washington said that the Chief U.S. District Judge' " jail has a regulation prohibit- John J. Sirica to at least six ing prisoners from actually years and eight months in writing briefs for other pris- jail. Sirica interrupted the oners and said through a sentence and ordered Liddy spokesman that as far as he to serve? up to tight months: knows, the regulation is not for contempt for refusing to being violated. answer questions before a He said prisoners have federal grand jury. The jury , continual access to public will be dismissed in eight \defender service attorneys months, and Liddy ? can and are encouraged to seek , inaktnnilOIS4099M41/5441asheaneci Jail otticials said yester- ,petitions. ? Approved For Release 2001/09/04: CIA-RDP84-00499%00200010002.2 FAMES RES TON Trial by Leal( and Hearsay The White House is com- plaining bitterly these days that members of its staff are being smeared by leaks and gossip in the Watergate case, and there is obviously some- thing to the complaint. It would, of course,.be eas- ier to sympathize if the White House had been as concerned l with the civil rights of the i people who were bugged and 1,1 ? burglarized at the Watergate as it is about the civil rights of its own people. But even so their people are entitled to fair treatment regardless of , , whether they are fair to their suspicious accusers. The leaks have been coming either from unidentified members of the Senate Water- gate investigating committee, or their aides, or from law- yers appearing before the committee, who are passing on unsubstantiated testimony from James W. McCord Jr., one of the conspirators, who claims his information came from G. Gordon Liddy and E. Howard Hunt, two other men convicted in the Watergate conspiracy. This is hearsay "evidence" at least three times removed. And yet, by constant and prominent repetition, it harms the reputations of some of President Nixon's, closest associates, because it amounts to the charge that. they were in on the Watergate conspiracy and thus broke their oath of office. Twenty years ago around here, this trial by leak and i gossip used to be called "McCarthyism" and the word has now gone into most stand- ard dictionaries as meaning -I. The practice of making Ipublic and sensational accu- sations of disloyalty or cor- ruption, usually with little or no proof or with doubtful evi, dence The Watergate and the McCarthy episodes were quite different ? even McCarthy at . his worst never bugged Demo- cratic headquarters ? but the headline hunting still contin- ues in the Senate, and lately the Watergate has been pro- ducing its own "public and sensational accusations usually with little or no proof Sen. Sam Ervin of North Carolina, the chairman of the Senate investigating commit- tee is undoubtedly within his rights to reject Nixon's MO- tion of "executive privilege" as "executive poppycock," and to insist that members of the White House testify, not on their relations with .the President, but on their rela- tions, if any, with the, Water- gate conspirators. But if the integrity of the Senate is involved in trying to get the President's aides to talk, it is also involved in trying to get the members of his committee to keep quiet about the gossip they hear in secret testimony until the whole committee has deter- mined that it has enough cor- roborated evidence to investi- gate the charges in public. Ervin agrees with the doc- trine of senatorial discretion and restraint, though it is sel- dom practiced. In Greene V. McElroy, which came out of the Mc-. Carthy era, Chief Justice Earl Warren, speaking for a ma- jority of the Supreme Court of the United States, insisted that, when action by the gov- ernment seriously ?injures an individual, "the evidence used to prove the government's case must be disclosed to the individual so that he has an opportunity to show that it is untrue. "While this is important hi the case of documentary evi-. donee," the chief justice con tinued, "it is even more im- portant where the evidence consists of the testimony of individuals whose memory might be faulty, or who, in fact, might be .perjurers of persons motivated by malice, vindictiveness, intolerance, prejudice, or jealousy. Watergate Watergate is not, of course, precisely the same case, for the Ervin committee is trying /to get the White House staf- fers to the Hill to hear the evidence and comment on it, but the principle is the same: tat the accused should not be damaged by unsubstantiated evidence, and this is happen- ing now before the facts are This raises hard questions too for the American press, which was criticized for years after the McCarthy period for turning over its front pages to his unsubstantiated charges. Once senators talk about McCord's testimony, and it is broadcast all over the coun- try, however, about all the ? 'reporters can do is emphasize that the charges are "hearsay," and this has been done. Nevertheless, as the Water- gate case is just beginning on Capitol Hill, there is a prob- lem of fairness and due proc- ess, which requires more re- spect from the White House and the Senate committee than it has been getting. A crime has been commit- ted and seven men have been convicted of it. The larger question of who instigated and financed the crime has not been established, and this concerns nothing less than the integrity of the American po- litical process. After all, both the White House and the Ervin commit- tee say they want to get at the facts and restore confidence in the political process. liWailliiiciklivw* 00.104.10mmerromp.?. THE STAR and NEWS A-S Washington, Wodnesrlay, Apr114, 1973 - Approved For Release 2001/09/04 : CIA-RDP84-00499R000200010002-2 By JAMES DOYLE Star-News Staff Writer His suit was rumpled navy blue, his tie red-white-and- blue-striped, and there was a small Connecticut flag em- blem in one of his narrow la- pels. To most of the visitors and even some of the elevator operators in ;the Senate, Low- ell Weicker remained the anonymous, graying, athletic looking man who at 91 seems a bit young to be a United States senator. But as he bounded along the corridors of the Capitol from press conference to meeting to yet another press confer- ence yesterday, it was clear that Weicker, after two years, had arrived. ? HE 11AD SEEMED the least likely to cause any stir when he joined the special Senate committee investigat- ing the Watergate incident. He is the junior man on the seven-man committee, a hard- ly noticed freshman who wis figured to be a predictable Republican vote in committee deliberations. But for several days the favorite question on Capitol hill has been, what is Weicker up to? Is he slightly flakey? A wild man who is blowing his. political future in the party?' A publicity hound who will destroy the committee's cred- ibility for the sake of a few headlines early in the game? "1 am pretty far out in front on this one," Weicker told an interviewer yesterday. "And that bothers me. No man in politics is hiding behind a plant in the corner. But I am bothered at being this far out in front." !' 11E GOT THERE BY his own words before the televi- sion cameras and in sessions with newspaper reporters. For a week he has slowly built ' a charge against the top man on President Nixon's White I louse staff. On Thursday he called a ? news conference to criticize the anonymous leaks coming; out of the committee, and he warned reporters not to be misled into thinking that pres- idential campaign disruptions of 1972 we simply a lower' level sabotagepOtrirtnvelehrgo'r minor figures: ;Ho: .4t fl jhMkt)" th! Ft wudiAlt.'s ? ? ? r ? ka M.: CI the instigators were still on the White House staff. On Sunday, Weicker named White House Chief of Staff H. R. Ilaldeman as the man who probably knew that there was a group of hired men at the Committee for the Re-election of the President involved in political espionage and dis- ruption. Ile said it was "imperative" that Haldeman testify before the Senate committee. YESTERDAY, he said Ilaldeman should resign. The result each time was large headlines that kept the Watergate case on Page 1, and exerted pressure on the White House to deal with the 9-month embarrassment that doesn't seem to go away. And the result for Weicker was an instant notoriety that was new for him. Yesterday, he began his day with a large breakfast meeting with re- porters, and spent a good deal of the rest of the day answer- ing reporters' questions. Why is he criticizing his fel- low Republicans in the White House? "I began speaking out last October, well before, the election," he said. IIE WAS STRUCK by the fact that, when reports of the Dita Beard ITT scandal and the, Watergate break-in ap- peared, "the polls showed that the American people were saying, 'well, so what? It goes on all the time.' " Weicker says, "The hell with it. It doesn't go on all the time, and it shouldn't go on all the time . The only way you're going to cure it is to have Democrats batting Democrats over the head and Republicans batting Republi- cans. Otherwise it becomes either a partisan exercise or a whitewash." He continued, "This is no professor of political history talking here, or an idealistic student. This has been my life:for God's sake, since 1960 and in every conceivable race ? state legislature, mayor, congressman, senator. I have been through the whole gamut and this' is totally new to me. And yet the American people F 1 tfkai rtIA - oir0 ti WrieS of Ipeidents, that till 141P3; fa) mil 1111Z Sen. Lowell P. Weicker Jr., talks to n( "I think the American pub- lie as a whole has always at- tributed to the Democratic party the fact that they were the party of ideas. And they have always attributed to the Republican party that they were the best implementers, the best administrators. "Now that's on the good side f the ledger. 'What I am basically saying here today is, when it comes to this business of integrity and honesty, I think it's the Democrats who are the most intellectually dishonest, 'and I think it's the Republicans who in their ac- tual deeds are the most dis- honest." Yesterday, as he spoke to reporters and to two groups of students in the Senate Office Building, his voice was often emotional as he spoke of Wa- tergate. . "PLEASE BELIEVE," he told a group of high school students from across the ; country who were gathered in the Senate auditorium to bear him, "this doesn't go on all ekamsa.tAgoom, 200010002-2 Approved Fomaelease 2001/09/04: CIA-RDP84-00499,8,000200010004-2. INIOWN111,494.066:.M.:41.: