NIXON TACKLES THE STATE DEPARTMENT

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CIA-RDP77-00432R000100070001-9
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December 9, 2016
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June 7, 2001
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January 29, 1973
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Approved For Release 20(elaR10i~.C.1A-EDP77-00432R000100070001-9 nuEni but NEWS, VIEWS and ISSUES INTERNAL USE ONLY This publication contains clippings from the domestic and foreign press for YOUR BACKGROUND INFORMATION. Further use of selected items would rarely be advisable. No,, 28 2 FEBRUARY' 1973 Governmental Affairs 0 0 3 CONn ENMAL ? Page Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 Approved For Release 2001108/07 : CIA-RDP77-00432R0001000'706-0119 4 G overnmen airs .3. MAWS & WORLD RFP.ORT, ion. 29, 1913 NIXON TACKLES THE STATE DEPARTMENT. .. , . ? pr--i Casey is expected to workclosely* * with:.: femrrient the State Department is .under: 1 diplomatic problems of the 1970S M 1.- orders to hold down .spending. ? , If the President's idea ? -0' ,Vails, the State Department is S Dwindling recruitment. In keeping: Secretary of the Treasury George P. 1 House role as overseer Of economic af-1 'with instruttions to economize, only 82'; : of the more than 10,000 persons who; - : i Shultz, who. is functioning in a White in for big -changes. But it's al aspect of' i` took the examinations for jobs as Foreign,' ..reMOdeling job that other Preik fairs,. both domestic and international. * ;* . the State Department reshuffle is action? 1 sioned-far from enough to balance theService officers in 1972 were commis; ? ?*.clenis have found frustrating. '..1- .. Empha!is On youth. One asp . ordered , by the President?to promote estimated 200 who retired or resigned.:!:: yoUnger officers- in th Now being set in motion is:a complex:* ' In 1962, the Foreign Service had,1,104::, " , e Foreign Service , ,tn,positions where greater use earl be. : junior officers; in 1972, only 523. : undertaking to which President Nixon is made "of their talents, energies and! , , ideas. A White House official reports: I .. Heavier work load. While manpower'', giving high Priority as he starts his see:t: ond term: overhaul of the unwieldY. : "The President feels 'that there are -}ms gone down,. responsibilities have in, creased, ,now in the Foreign Service a number of ; sed, officials say. The great, upsurge', Department of State to make: it more, ' responsive to his' own 'objectives and, i "qualified people in ? the 30-to-40 age in foreign travel by Americans and the, desires. , : ' : ' '? flow of Ameriean investment overseai. . . It's a familiar goal, sought by many' bracket doing routine jobs, and he wants, I are just: pelt of the picture. New prob... Presidents' in the past. And if history is: _, r., . to give 'them an Opportunity, to ,move 1 lems are demanding attention?the in- any guide, it will be elusive.: , e. t 'national drive against the traffic in' The extensive shake-up which Mr.! ' To make room, some older Officers of : : narcotics, outbreaks of terrorism, the. di e Foreign Service will be transferred ; menace of skyjacking, for example. :Nixon '? has ordered is the fourteenth Also, officials note that the State De- ef- fort since World War II to reshape the, . . :" to other areas of Government. 'sprawling Department whose bureaucrit.. Besides the "housecleaning" pressure partment is called upon to supply . a -cy john F. Kennedy Wee likened to a: 'being exerted from the White House, , "constant stream" of detailed studies, "bowl of jelly." , ; ;internal reform?launched three years ago I'and other data to the staff of the Na-:. This move is in line With the mei , by William B. Macomber, Deputy Under banal Security Council, headed by ',Executive's determination to tighten the Secretary for Management?is being Henry A. Kissinger, the President's As-: . , White H . 1-louse grip on the whole structure f accelerated. . ! sistant for National Security Affairs. ' ;of federal operations. : :. The reform program ? is designed to ! Among State Department profession-: ; A new team of men described as "in,* put added emphasis on teamwork, to: ,I als, hope is expressed that the shake-up , .novators and activists" was assigned to, make better use of brain power, to in.: !ordered by Mr. Nixon and the Depart- ,I ; take over at the State Department at a; crease opportunities for younger officials ment's own program of reforms will' level just below Secretary William P.. to let their voices be heard and to have , enable it to regain some of the prestige Rogers. Members of this group are: , , a say in decision making. it' lost to Mr. Kissinger during the first ?to Kenneth Rush, Under Secretary of' A main ,goal of the changes is the Nixon term. , 'State: Mr. Rush, who has served as Am- bolstering of State Department morale, It Is generally conceded that Mr.. bassador to West Germany and as Dep-which insiders characterize as "shaky." ' Kissingir was in a better position. than uty Secretary of Defense, is an old and Among reasons cited: . ' 'the State Department to help the Prest;:: , trusted friend of the President's. He Shrinkage. Although the, State De- ! dent make important breakthroughs?such- 't'aught' at the Duke University law: partment is listed as having in excess of : as his summit trips to Peking and Mos-' 35,000 emPloYes, this encompasses about :cow and the secret talks on a Vietnam' 'school when Mi. Nixon was a student ' - 11,500:: persons , with .the Agency for truce. , there 35 years ago. AsSociates regard- . . him as a foreeftil , administrator, who International Development (AID) and ? For one thing, the secrecy which Mr.' ' :I knows What Mr. Nixon wants and how' 10,500 foreign nationals in jobs overseas. , ' Kissinger needed would have , been dif- Over all, the total of American citizens I ficult to assure had the ,State Depart-., to achieve it. :. :' ? , ? William n J. Porter, Under Secretary ' . on the regular State Department payroll ; t ment been handling the supersensitive . including communicators, technicians, ; :negotiations. : ler Political Affairs. A career diplomat : ? ? - : for more than three decades, former clerical workers and other nonprofession-. As a former Secretary of State, Dean Deputy Ambassador to South Vietnam : els?fell from. 13,800 in 1962 to 12,100 Rusk, remarked: "We have 'to resign and former Ambassador to South Korea,: in 1972. Between 1962 and 1972, the ourselves to the fact that' we Work in a ' ? .-Mr. Porter is said to have mien the Pres- ? number of. Foreign Service 'officers, Government that doesn't know how tor ident's high esteem by the way he han- ' 'dropped from 3,760 to 3,190. . ! :keep Its mouth shut." , deed his job as chief U. S. delegate ta' ? Fewer posts. Although 22 additional: , . Spadework voitinieert. Be that as the Paris peace talks on Vietnam. - ; : 'American embassies were ,. setup be, it may, the feeling at the State Depart41! : .* William J. Casey; Under Secretary tween 1962 and 1072?because of the i , tnent is that because the breakthroughs ,' - s or Economic Affairs: Mr. Casey, a New' ?emergence of new Countries?the total I have been made, the time has come for'.'' York lawyer and a World War II offi-, - number of U. S. diplomatic offices abroad the White House to call upon experts!!' ;e'er,: in the Office of :Strategic :Services,; 'declined from 276 to 248. Many consul- : in the eateer Foreign Service 'to dol 1,was brought to Washington by. Mr. Nix- ' !etes?inclUding such to, 'of-', more sof the spadework needed :to dn..; i. i on in 1971 as Chairman of the Securities flees as those in Templed:and Veraeruz? large Upon diploitiat lc: initiatives. :* :And Exchange commissidn. Ile is cred-," Mexico, and Glasgow, Scotland?were ' , Some professionals contend that pre- i : Red with having 'instituted a number of :shut down to save money. matiire optiniisin last October about a! significant changes in operations of the;' ,Latest figures on th S. missions abroad : Vietnam agieement' Might have been!, '';', , !LSEC and is known in capital officialdom; 'are:. 126 embassies, 68 conk:dates gen- . avoided if ,Foreign Service specialists' ! as the kind of "doer" that Richard Nixd oral, 45 consulates. Also there are 9.mis- , had been- advising Mr. Kissinger on a r, on prefers. . : 7: ' . '; ,." sions to the United Nations and other . . closer basis. ; :" ' ' ., '';? Mr. 0,aseY's job:4t the State Depart:1? : international organizations. . ,; . i said one (newt. , merit has,just. been created. It reflectif . : Rising costs. Even with fewer Atheri- i : "There is , resentment--justifted or not: the AdtnAnistration's 'conviction that Oen- . tans in State Departinent jobs, the De- ' . ?among Foreign Service officers. who; .nomie.issnes are replacing military seen.; . pertinent's budget rose front 408 million . feel that for the hied part they. have , rity ' and,,,:defetise alliances as the main dollars, to an estimated 600 Million :this heeti cut nut Of the main iction during Approved For ReleenagMaetrar015F4PBEV2R000100070001-9 - c7.77,7777777777111 the last four years." Within the , ? Department, ? there has . been -Criticism of Secretary -Rogers. knoWledgeable source commented': ? "negers.:does his best.' work, behind the scenes-and ? telli.? *few at the Depart-' ment what. be is, doing. The Secretary. -Is part of the top strategy conferences, ? 'along with the' President ? and !Henry Kissinger, but he doesn't talk about ?his role, doesn't put his best loot ? ferward in public. ? . - ? . "This has an . adverse effect on the' great' bulk' of the Foreign Service. Net. ??,? aware of, what Mr. Rogers is doing, ? . ? many career people. fear that the 'service tin, which they have staked' their futures t, IS being-dpwngraded," Rogers?no "headlines," 'Another H.: ; - ;comment , from an insider:- "For most of the Foreign Service- pro- the sittiatinn looks bleak. .Kis- 'singer, hot lingers, gets the headlines..i ? !Kissinger, :not Rogers, sat in' on the .! ,President's talks with Mao Tse-tung andl,. ?????:, Lennid Brezhnev. Kissinger,. net Rogers,l, : ;dealt- with Hanoi. All' of this--Contrib, .1, ? .tites tothe morale ivoblem.? , , . : Approved rot..Re.14?0001M8/07-,: CIA-RQP,-00432R000100?070001-9 Officials say that as new Vitality is ? - ,'sotight, one of the toughest tasks is to persuade other agencies of the Govern- moot. that the role of leadership In :eign affaiis - properly' belongs- to the' ;State Department. ? - ? It's pointed out that 'over the years !increased activity abroad has been?under-? :taken by the Defense,' Treasury and Cirritueree Departments, .the Central' In, tellipince :Agency; AID and. the ,1.1. S. Information Service. ' The -core of that issue. is that 'existing, law specifically gives. these agencies cer- hitt responSibilities. overseas. 'Beyond ? that; the ? State Department does not have, the' manpower and- resources to . take over,the jobs that others are doing. ; Fresh ,approoches? Despite, all the difficulties with which- the Department is cotifronted, some key officials express 'confidence that fresh approaches will ; pay off in enhanced prestige. ! One such change- is the shift in em- phasis from old-fashioned, orthodox diplo- macy tointernational trade and monetary Issues' that the Department is bracing itself to meet around the world. ., In, this connection, an effort is being made to recruit young Foreign Service officers trained in economics. Alco, a number of officers whose experience has been limited chiefly to diplomatic roll- line- are being sent to study economics AtLgraduate schools or at a special cram .course conducted by the Foreign Service ;Institute. . State' Department officials are -con- cerned about the loss of mine young Foreign Service officers who have de- cided that their talents can- be ? put to better .use elsewhere. For example, 14 have resigned in the last two years to accept jobs on Capitol Hill: But officials Nay that only two have quit in protest against policy. In both, cases, the U. S. role in Vietnam was the issue. Concern about the Morale of younger ; Foreign :Service officers has.' resulted in , ' such steps as these: "Open forum" meetings are held reg- ularly, at,,which officers, exchange 'ideas- and..complaints. Approved toggestions*, or etnripNints are sent directly to .the't '?AMERICAN EMPLOYES 12,100 at latest Count,: own from 13,80 , a decade 'agtx,, , .; :,? .:.,, ? ? .: .? - - .,: ? ,,, 'OREIGN SERVICE OFFICERS - 3,190,down 570 from the en 1962.. Average age Of this force Of. American, professionals-is:risk .. ing. OnlY 15 per 'cent ore in startingrgrades now, Compared cvit, 530 Per cent 10 yearsago:" 25 per Cent are in top grade's, up from 'r19 per cent. in 1963:- , ,, :. ?: . ? 'DIPLOMATIG,, OFFICES: 248 embassies, consulates and triliki around the world, : Compared with 276 a decade earlier. _ SPENDING: An estimated tdp . million dollars this year, , Up from p408 'million In 1961,- largely because of inflation.. FOREIGN AID:' 8.3 billion dollars of economic and financial as, i'sistance is going to 86 countries this year, down from 4 billion to 9.8.]::countriesrin1963 ,?! ,,.- ...,..:.. ,..., .....,.L.,:.,,,L., 'Secretary, who answers all of theta, at, selves more olivionsly- useful t cepting several ideas and explaining why I, ' White Bouse.4 others are rejected. ; In' the worth, of Nfr. Macomberj him- Ambassadorial. conferoveek are s bed= , tiled, periodically. On these occasions, chiefs of mission meet With younger: of- ficers, whose immediate supervisoils are not present and who are encottrag'ed to As explained by ow aide to; D Ipttly 1 speak out frankly. Both- policy ;an I ad, ministration, are discussed,. Under Secretary Nlacomber; the evrrent concept in the State Department il dna: : "The Department. tan* - obl ge a President- to put. it to. greater' iis --hitt can improve itself entaigh to 'shot -hitt that we are capable of doing rt job bet- ter' than anyone else-better this t we have -in- the past. We ei_ttst_makti_ mit ; - self, lead6r1hip mean only be eons d by.. competence." The Deputy, Uncle' Sec- retary warned: that Unless the D !part- ment makes itself capable Of takit g the )1 lead in handling foreign affairs; "this . ? will be done . for us" by somebod else, ? . During Mr. Nixon's first terin .t mum. , tie- developments in foreign pnlicj were centered in the White House, Adel* Seemingly. paid scant attention the State Department's machinery. . ? Now, the President is stressing that: ?he wants that machinery remodelet As the remodeling gets under ? ? many in Washington are mindful ? frustrations experienced by past- , dents who wanted the same thing. ?-? - - - - - NEW YORK' TINES ! 28 January 1973 ESPIONAGE CHARGE DENIED BY WILSON LONDON, Jan. 27 (AP)? Former Prime Minister Harold Wilson denied today a report that he hid an American spy in his residence outside London 'where he met with Soviet Pre- mier Alexei N. Kosygin in 1967 for secret talks on Vietnam. Mr. Wilson also denied that a United States agent was given drafts Of documents that he drew up before the talks or a transcript of a telephdhe call between- Mr. Kosygin and Leonid t. Brezhnev, the Soviet Communist party chief, that British intelligence had alleg- edly tapped. The charges which were made by Brig. Gen. Paul Gor- man in testimony yesterday at the Pentagon papers trial in Los Angeles. were 'a totally tom- red version" of whit took place, Mr. Wilson contended. ' He denied that British agents had tapped a telephone conver- sation between Mr. Kosygin and Mr. Brezhnev. ' General Gorman said a United States agent, named Chester Cooper, had lived at 10 Downing Streett the official residence of British prime min- isters, so that he could work- with Mr. Wilson as he prepared for the meeting with Mr. Kosy- gin. The general said that the agent later hid in What he described as a "garret prison room" at Chequers when the, two leaders met. There was no indication whether. the agent, was able to hear what they dis- ? cussed., Mr. Wilson said that Mr., Cooper, whom he described as the President's special repre- sentative, was not in a position to know what he and Mr, Kosy-, gin said. = . The cloak-and-dagger story -Was reported in four previously, unpublished Pentagon Taper* that dealt with British-Amen- can links. ,4 Mr: Wilson said In a statei ment: "There is also a suggesv tion that Mr. Kosygin was uni;? aware that I was in touch with. the White House. They are it ? totally incorrect version, at, what happened. There was no spy at Clfequers." Mr. Wilson said he had been" in 'touch with the White House 'about the Chequers talks be-- fore he met Mr. Kosygin cause of the possibility of tending a Vietnam cease-fire: then in effect: ? "In View of the urgency And ithe time factor; Mr. Coopet was at Chequers specifiiallY :keep in tired telephone -touch, ,with the White House so that II could communicate to Mr; ;Icbsygin any decision the Pit 9;?:, ident. made," Mr. Wilson .sail' But, he"stressed, Mr. C.00 ;did not eavesdrop on the t [between himself and Mr. Kosy Approved For Release 2001/08/07 : CIA-RDP7i-00432R00010007000 tfi'77 1171711/Y `1,t;frr'' Approved For Release 2001108/07 : CIA-RDP77-00432R00010007000:1-9? RADIO TV REPORTS. INC. 4435 WIESCONEN AVE. NW.. WASHINGTON. 0. C. 20018. 244-3E40 PROGRAM Firing Line STATION WETA TV NET Network ' DATE 'January 21 1971 10:00 P.M.c". .Washington, b C FULL TEXT WILLIAM F. BUCKLEY: Last Sunday, Senator Edward Kennedy [ proposed in the New York Times that President Nixon, having, . after all, gone to China ancfreestablished informal relations .there, there is oo purpose left to be served in continuing to ostracize Cuba, 'Mr.. Kennedy's. point struck many people as logical- ly compelling as we see the ongoing collapse of commitments and alliances annealed by the. spirit of resistance.to communism a generation 'Ago: Among greater and lesser casualties of that, ,.dissolution is the Central Intelligence Agency, whO/se'organizing bias, if you will, was the postwar decision to let communism move no further. To discuss these points'xwe have two guests. Mr. Mario Lazo became an American citizen only a few days ago, though he has lived half his life here, he other half in Cuba. He .:was among the two or three best known lawyers in Havana, the founder of a huge firm well-known among other things for its philanthropic activities. He leg, Cuba after the Bay of Pigs and published a year or so ago a Ofinitive account of the failure of the move to liberate Cuba,."Da0ger In The Heart." Howard Bunt was intimately involved as an official in the CIA in the*Bay of Pigs. Indeed, the New York Times named. him as the principal CIA official directly involved in that venture. He is a graduate of BroMn University, who was a war correspondent for Life magazine, A freelance writer who has . published, forty-two books, most of them Spy novels. On retireMent. from the CIA after twenty years of duty, he did freelance work as a White House consultant and last June was arrested in connect-. .ion with the Watergate case, Last Monday he pleaded guilty before federal court and the sentencing is yet to come, The -presiding judge and Mr. Hunt's own lawyer have forbidden him to speak about Watergate. But his involvement there has not, pretumably, diminished his knowledge Of the CIA' and Cuba and . :his special qualifications, born of long experience to discuss. Hthe CIA and foreign policy. The lawyers from Washington have only just now advised, us that we may not submit to questioning as usual by the panel, to whom I apologize. I should like to begin by asking Mr. Hunt whether his public identification as a long-time CIA official confers upon him now the right, if only in self-defense, to describe with appropriate discretion some of the activities of the CIA, particularly as they relate to Cuba. E. HOWARD HUNT: I believe that it does, Mr. Buckley.! After all, it was not 1 who identified myself as a former employee, officer, or official of the Central Intelligence Agency. That Information tame from the government itself, And I considered"; It then, and I consider it now, a unilateral abrogation by the Approved For Release 2001i08/47 : CIA-RDP77-00432R000100070001-9 Approved For Release 2001/08/07 : CIA-RIDP77-00432R000100070001-9 :government of the commitment that* we entered into upon My retiremen '.from the Central Intelligence Agency. ? BUCKLEY: Your point is that -- that when you were: Harrested somebody in the government... HUNT: Max I BUCKLEY: HUNT: I was the appropriate ttme. BUCKLEY: Uh-huh. interject? I,was never arrested. When you were what? Detained? I surrendered ? to U.S. authoriti HUNT: But I was never at any time arrested. . BUCKLEY: Well, was them-- had that Was that point a warrant for your arrest? ' HUNT: NO warrant was ever issued forli BUCKLEY: No. UhLhun. HUNT:, I was never a fugitive. BUCKLEY: Yes. But - but -- at that at that Point?, understand it, the fact of your having been associated. CIA was for the first time publiclY-ventilated?- HUNT: That is correct, yes. BUCKLEY: Yes. Now, does -- does this mean that you'... you can speak about yourself as having been a member of the CIA with.moral.impugnity, or does it mean that you can go further In that.-- than that and describessome of the activities of , CIA in Cuba and some of the forecasts for CIA in the current mood of detente? '?HUNT: I feel that I'm.able.to do. that, yes.\ \ BUCKLEY: Okay. Well, then,let:.me ask you a.direct. question. The,.CIA is.not permitted, as,I understand .it to. engage, In domestic activity. Right? HUNT: Right. 1. BUCKLEY: NOW, does that.mean-that nobody has any, Irtght.to..suipeCt.that -- that the-Watergate.businesswas a CIA'. Hoperation?. HUNT: No. That..-- perhaps IL shouldnt have answered .your earliqr.question as deftnitively as-I.dtd.. It is.known, .1 for, example, that the CIA atone.tiMe.,was involved in domestic- Mierationt. And I cite the discovery, the disclosure, of... ? BUCKLEY: The NSA business? HUNT: ...CIA support of the National Student Association That was a domestic operation. BUCKLEY: But for purposes of foreign travel wasn't it? HUNT: Not solely, no. They recruited:American students . campuses for work in this country which led eventually 4 ___-4.4,pprove41-.-F-0-21414490s1!;g7ii- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100076001-9 to work abroad. BUCKLEY: Well, what -- what about the Suspicion, that' has been widely ventilated, that experience, especially I.lifelong experience, with the CIA teaches a person to forget .about the legal impediments that lie between him and the accomplish. lment.of a mission that he seeks to -. to achieve? In -- in ithe grownup world, as I understand it, everybody recognizes Ithat it is illegal for a CIA 'operative to -- to -- to work in Cuba and it's illegal for a Cuban operative to work in the United ' States' but they both do'it. HUNT: Yes. .1 , ? ' BUCKLEY: Now, Under the circumstances, I g0ess the?H.,, question .I'm asking is, if,ank Spends_twenty- years working for i:', , : the CIA, is it likely that on returning to one's own country;, one has so?much absorbed the ethos of the CIA that one tends to-voaf,*,ter_what,it_is ?tha'[tHone,wants?and to consider local legislatiOn'that-standS in the Way as sort of irrelevant? 4 ; HUNT: If one even were to consider - It would not be illegal under United States law, fordexample, for CIA to mount an entry operation in Ottawa or -- or Fort Erie, Canada, the other side of the Peace Bridge. But here ' we have a?geographical distinction.. We would not be guilty.. Under United States law of of, let's say, a. second-degree: 4 ,burglary charge by the United States for an operation that we .conducted in Canada, or in Mexico; we would be were'it conducted In Florida. or Texas or SouthernCalifornia. BUCKLEY: Well, I -- I wish to... HUNT: Am I answering... BUCKLEY: Yes, you are. And I wish to be Very'explici about it. I want to abide by the -- the ground rules and not not try to -- any sneak punches. But I guess what I'm -- what 1 I'm asking is, is -. is it fair to say, without violating our understanding, that in approaching the Watergate business you and your associates approached it in the spirit of a CIA operati may CIA the HUNT: Yes. BUCKLEY: Uh-huh. Uh-huh. Now, Mr. Lazo, may I .- I .ask you this: at -- at what point did you 'Understand the to be engaged in an operation the objective of which was deposition of Castro? n?' MARIO LAZO: At what point did I... BUCKLEY: Yes. J. LAZO: ...understand the CIA to be... BUCKLEY: Historically at what point, yes. LAZO: ,..engaged in what/ BUCKLEY: In an operation the objective of which was the deposition of Castro? LAZO: Well, I would say that goes back to the Bay of Pigs. BUCKLEY: Surely not -- not before then? You didn't _ Approved For Release 2001/08/07 PCIA-RDP77-00432R000100070001-9 fL.I. ? 4 1:..1iii(.NC1'..)17IFT7171.1.7771:-'7, riFIT:117Fir,7.77ririci,17.1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070091-9 din know the CIA wanted to oust Castro until the Bay ;the Marines landed? LAZO: No, I think that was the first time that I remember. You had something else in. mind? If you ask me, I'll be glad to answer you. BUCKLEY: Well, you -- you -- you were living i as a Cuban citizen. LAZO: That s right. BUCKLEY: And you were - as I understand it, you. were helping out agents of a foreign country, including indirectly Mr. Hunt, who were pursuing the orders of the President of the United States. I'm asking you did you know what those orders were. LAZO: Well, Mr. Buckley, look We worked, my partner and.'! worked, for many years with the CIA and the FBI. Anything we could dO to help them wt -- we did. BUCKLEY: Was this in violation of Cuban law? LAZO: No, No this,;.:. .BUCKLEY: It's okay to work with :a foreign... LAZO: And, furthermore, the-- at that time there was no country that was closer-to.the United States than Cuba, BUCKLEY: But I'm talking about post-Castro, I'm not ,Pm,rizt talking about during pre-Castro. Were you working with ithe CIA' OT the FBI after Castro came to power?' If -- if you Idon't_want to answer, just say so. But -- if -- 1f you say ithat you don't want. to' answer, I understand. But... LAZO: No, no. I'm.-- I want to answer. But I'm -- the.-- I never worked professionally with either one. I worked in -- we helped them' in every, way WR could, After Castro came to power as 'a matter of fact, a year after Castro came to power,. in January, 1960, When' the-American embassy went doWni- I,bectme a.self-appointed.spy for .the U.S, it? BUCKLEY: That -- that surely was illegal, wasn't LAZO:Sure it was illegal then. And by that time IWe kneW where the country was heading; Castro had shown his (colors. And what I did was to arrange with,a'friendly. European igeyernment, to send reports once a week to the FBI in this country. : II , BUCKLEY: Concerning,wbat? ' LAZO: Hmm? BUCKLEY: Reports concerning what?' LAZO: Reports of everything that was happening in Cuba that.the United States should know. For instance, we repre en. ted the railroads of Cuba and we had about thirty-five inspector out and they were reporting from all over the country, and the ,headquarters, the main office, of the railroads was right under our office, and they would give us reports all the": time and . we would pass them to the American embassy.., My sympathies have always been with the United States. Approved For Release 2001/08/07 : Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9-7:- Now, at I was saying, when the embassy Went down andr! it seemed to me that the United States didn't ?have very good . .sources of information anymore, then I would send reports once ,a week by a. courier, who would ? go from Havana. to New York to the ? capital of this country in Europe and he would drop ,off my reports;. that was to the FBI. Nobody asked me to do that. Nobody ever thanked me for it. Nobody ever paid me:for it. Udidn't:eXpect any thanks. * 'BUCKLEY: YOU you were.really a volunteer collectf .LAZO: Yes, surely. BUCKLEY: ...information. All right. All right, . now, going back to Washington, I'd like to ask this of Mr. Hunt. It is often-referred to, the Bay of Pigs, as -- as the ,greatest Jiasco.in postwar American history. And -- and -- and reference to it is usually used to inspire some sort of a -- a disdain for CIA, Now, I'd like to ask you a two-part question. Number one, was. it A failure of intelligence by CIA that resulted in the fiasco? And number two, if it was more than that i if it was a political failure in Washington, is it a reseentibility of CIA to make recommendations with reference, to thelr anticipation-. of the fortitude. in Washington? HUNT:. Let me answer as follows. And I want to answer as completely .and'responsively as I can. First, the fiasco . Of the Bay of Pigs... BUCKLEY: A little louder, please. HUNT: The fiasco of the Bay of Pigs was not a failure of intelligence. It was not a failure of intelligence collection or of positive intelligence operations. The failure of the Bay of Pigs came about because at a critical time commitments that had been made by high officials of the United States govern- ment to the Cubans who were fighting, to their leadership in Miami and elsewhere, those officials backed away from those commitments and, in effect, abandoned the brigade at the beachhead. That was a political decision. CIA never had any reason to believe that these commitments would be abandoned. We had, after all, been recruiting the Cubans, sending them to training camps in Guatamala for many, many months. And these were the ground rules. First of all, 'there was the United States fleet offshore. The Boxer was the flagship. Secondly; the -- the principal things that the -- thing that the Cubans were interested in was that they not be opposed at the beachhead by Castro airpower. And this was a definite commitment that was made. Now, this commitment was made by the Eisenhower administration, in which now President Nixon served as Vice President. And I believe he chaired the 'National Security Council in that capacity. So, in effect, the commitment that was made to the Cubans, who went forward and risked their lives, was nullified by a subsequent political decision of the New Frontier. BUCKLEY: Well, was there anything to lead you to believe, between the inauguration of President Kennedy and the :Bay of Pigs, that he had second thoughts about it? HUNT: There was this. First of all, during the campaign. :President Kennedy 'campaigned -- then Senator Kennedy 'campaigned on a promise of help to the Cuban exiles. Pres -- Vice President .Nixon, who was intimately involved with the operational planning from his position In the National Security Council, could not Approved For Release 2001/08/07 IcIA-RDP77430432R0001m7009179 '77771=LE757111(V17777.777; ei Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9, ' ? ? ? HUNT: The Ken -'- the Kennedy, argument that the .United Sta tett should do something, to''':- help, overthrow ? Castro. 1.;;.,14..... #1- BUCKLEY:. Why mould he 'want to refute itiph,,yOuY:f q' , ; meaifv ..,. h couldn't say, ?.'?'Yes, -indeed 1,'.:,:?av,ree" with him. And i.11:?' ' fact ,it.te intend 1 co. " -., ' - . ;,-i'"1,; ?? ;:?."," -.,,':-. -, .-., -.. I- ,.::,- i!.!',:,',1,!-: il,- _ II p, , , - 3, . . , , , :. ? .?., .... , ,,.. _ -*HUNT: ?"And in fact 'we?are.:,..se':dotng 9 Y , , ,.s. ..-.. ' ??-!. '2. it'' , ? , . . :: ' 1 ? . 1: . HUNT: . Evidently the ? political decision was made to -- say nothing about it. ' So this was A plus', factor ,in the. Kennedy. Nixovdebates, a plus factor for Kennedy. . : . , ? 4 . , . .*'BUCKLEY: Did -- did..I HUNT: Kennedy actually knew, of course, what we werel".:? dotng4; ? , 1 ? BUCKLEY: But he -Could appear to be more. hawkish than' , ' ? , - ?? ? AUNT: Yes... That's right. And Kennedy knew perfectly Well What we were doing, because- he was receiving, as the .Dempo,t, tic.'C'andidate, daily briefings. from CIA., And he was taking Advantage of that knowledge. " H: ? k BUCKLEY: . Not daily briefings from DreW ,Pearson?,, ' ' ' [Laughs] Quite, conceivably.. , f ? - BUCKLEY: Yes. . ? HUNT: ?...too. Again, to answer perhaps mote 'specific ly to your question, shortly after the election and it was made ,known that Kennedy had -- had been elected, we were ordered. to close down all recruiting and training activities for time ?for the time being. Everything was put into suspense. During this period, Allen Dulles, Dick Bissell, some of the other princi pal officers of CIA went down to the Kennedy Palm Beach compound ? and told him exactly what the situation was. In due course, after about two or three weeks, the commitment was made: go ahead, continue as before. ? HUNT: To us that was perfectly understandable, that an incoming President would want to review what his predecessors had done. ' BUCKLEY: Uh-huh. HUNT:There was no intimation from them, and certainly2 _ _ se 2011/08/07 : CIA-RDP 7-00432R000106070001-9 APproved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 no inference on our -- or our-pirt, thit there would be a drawing away from the overall commitment, which was to overthrow Castro and regain Cuba for the free world. said... BUCKLEY: Right. Now, the -- Senator Kennedy has HUNT: Senator Edward Kennedy? BUCKLEY: Yes. I'm sorry. Edward Kennedy has said apropos of the situation that only only an armed invasion would have pursuaded -- or, would have succeeded in causing Castro to be overthrown. Now, I take it everybody agrees that that was the case when Castro first took power. He -- he he was very popular at that point. To what extent was the intelli. gence reckoning about -- on the Bay of Pigs dependent on a view of a transformed attitude towards Castro by the Cuban people? Did you proceed -- and I'd like for Mr. Lazo also to comment on this -- did you proceed on the assumption that people whose mission it was to overthrow Castro would be universally welcomed? HUNT: Not universally, no. But certainly4by a majority of the Cuban people. This is not to say that we vAeWed the the Cuban citizenry under Castro as a military asset to ourselves. We viewed them as probably being responsive to early indications of victory, and of overwhelming force that we intended to show. Again, I should bring out that our -- that the New Frontier did dilute our original plans. It was to be -- instead of an armed airborne envelopment of the -- of the central city in Cuba, this was minimized, apparently by Dean Rusk. r ,I bring out a number of these points in a forthcoming,t book which I've written on the subject called "Give Us This Da and it's subtitled "CIA and the Bay Of Pigs InVasiOn." BUCKLEY: And it detail it details ,these ,HUNT: It details these. changes,iyes4 , BUCKLEY: In pl,.anning.:Uh.4uh... 'HUNT: ,That's correct, 01. BUCKLEY: ,Well Mr. Lazo, what -- what is your comment then, about the.attitude.of the Cuban people in April of, 1161? LAZO: I 'hope that you Won't think' that this ;digression, but may,' go bad( a little bit.... " J.1! BUCKLEY: Sure. Sure. LAZO; '...and tell you about. my --;how I met Betnar jarker,-Who is one of the group the Watergate group...... BUCKLEY:. Sure. . ,LAZO: ...and who was Very active n.th?ay-. BUCKLEY: Sure. LAZO: . May I, may I do that? -BUCKLEY: ,Of course, 'LAZO: : It has aTheariho on:thit. Barker was brought to my'office shorfter World War the milttarY.aW . Approv9d-For Reletly asea/19 20p17 :.?CIA-4RDPH-Ou43-zR0001o001pyoi ttac -9- 77 (#; w7g, ? . Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 of the American embassy, i fellow named Colonel Buzz Grant. 'His problem was that he had done security work to protect Mrs-. IrUman and Margaret Truman on a visit they had made to Cubadri , BUCKLEY! AS -- as a Cuban citizen .Barker? LAZO: He was an American citizen. BUCKLEY! American citizen. LAZO: But the Cuban -- the Cubans -- he spoke perfec Spanish; he was born in Cuba, I believe. And the Cubans askee. !him if he would head a group tot give the security, to the ? ;Mrs. Truman and Margaret Truman. He was glad to do that. That !not done in the way that you would normally think. For instance Ithey didn't -- he didn't -=-"they don't follow 'em around in la patrol car or anything like that. The way they do that is fthat they assign Cuban secret servicemen to the varioUs dives! .'and places in Havana, which was a city of a million people, 0 1 1Wherp,ithe, underworld gathered.' L 110 BUCKLEY: Uh-huh. LAZO: These people are disguised. Sometimes they feign intoxication, although the Cubans don't drink very much. And they keep their eyes open and their ears open, and if theyti Isee anything suspicious or hear anything, they follow 'em and. 1 they do plenty of bugging of telephones. And that goes on for for a week or ten days. Barker was the head of this Cuban group, you see. But in taking this job he had signed a police form which was 'handed to him, Land it turned out that this police form contain! 'a -- an oath' of' allegiance to Cuba. And somebody heard about that, some kid in the embassy, heard about it and reported it to Washington, and then they took away his citizenship. And Colonel Grant, when .he brought Barker to me, said, "Mario," ,he said, "this fellow has had a wonderful war record, was a ;captain in the American Air Force. He was the first fellow to volunteer from Cuba. He had something like twelve missions over Germany. He was shot down. He was in prison there. And I wish you'd help him. Everybody admires him." So of course did help him. And that was arranged. Now, the second thing that happened was a little *more dramatic. This was in early 1960 after Castro had been in power about a year. Barker came to me one time, distraught and nervou ;and his problem then was that he had had hiding in his house one of his closest friends who had been doing counterrevolutionar work and had been there a couple of weeks and finally had decided, to make a move and got caught. And under the pressure of tortur he'd confessed where he was. And Barker had wisely arranged , to call his wife every two hours from a pay station in Havana .to a grocery store near their house in the suburbs. He had ,a daughter, a little girl by the name of Maria Elena, Helen, ,she was about ten years old. And they had one faithful servant. tAnd he thought I could get him out because we represented '.a couple of the American airlines. He's a very intelligent fellow :But he was, as I say, distraught; he wasn't thinking very straight. Of course to harbor a so-called "criminal" was a capital offense, !too. So Barker was in danger of being killed. So 4 tOld him exactly What you. woultifhave told him. . -4 said, "Bernard-i.what you do novis.you Call up your wife and: you tell her not to admit under any oircuOstance.s.tkat thit.. _ _ ___... ..? Approved For Release 001144-07.1: CIA-RDP77-00432R000100070001-9 . , ri,,T!liTiT77 i . I ' Pt Approved For Release 2001108/07: CIA-RDP77-00432R000100070G01-9 - 7.1{ fellow has been in your houie in -ilie-Tii-t?sfiriiitinths. \ He knows what your house looks like, 'cause he's been there; but he hasn't been there for six months. And tell that little girl of yours to say the same thing and your servant to say the same thing, and never deviate from that. And I'll do what I can to get this boy to change his story before he dies." So in those days they permitted one member of the family to see somebody who was about to be executed. In this case, it was this boy's Oster. A very attractive girl, about.-- Cuban girl, about twenty-five, typical Cuban girl with -- with pale, pallid white skin, ebony black hair, flashing eyes, long eyelashes', high spirited girl. And I went to see her and I said, "Will you help my friend?" And she said, "Of course. Your friend did everything he could to save my brother. Now we have to try to save him." And I arranged for a launch to go across the bay to Cabanios E?) Fortress to. see the execution. And as the priest was moving away and the squad was getting ready to fire, this fellow began screaming, in Spanish of course: he said, "One more fhing. I want to say that I haven't been in Bernard Barker's house in six months." And he kept on repeating that until they shot him. But he was a very nice-looking fellow . and they didn't want to shoot him. As a matter of fact, only one bullet hit him. And he slumped down. Two men Went up and lifted him and strapped him up on the post. And then the man In charge of the squad told them that if they didn't shoot him they would be courtmartialed, and they shot him; they killed him. And two days later we sprung Bernard Barker. Then he came to my office and he said, "I want you to tell me what I can do to help bring down the monster who murdered my best friend." And I took him over to the American embassy and introduced him to the CIA agent there. And that's the way he started working for the CIA, BUCKLEY: But let me ask you this then... LAZO: Yes. BUCKLEY: ...Mr. Lazo. Aren't -- a terminology that is justified by -- by a rather dangerous use of the law? aren't you using LAZO: By what? BUCKLEY: By a rather dangerous use of the law. ' I lthoroughly sympathize with your and Barker's, let alone the .,;dead man's, ambition'to remove Castro. But I don't understand, ireally, that we -- that we can persuasively challenge the right lof a country, however tyrannical its leader, to attempt to kill Icounterrevolutionaries. It's -- if -- if -- if the ambition kof -- of -- of Barker, or of Hunt, let's say, working in Cuba, is to overthrow Castro, I should think if Castro finds out about It he's got A ri?ht to shoot you. Now, that isn't murder. .You as a lawyer would know that. It's not murder. 1 ? LAZO: Just a second. Just a second. I'm surprised. .that a man of your intelligence should be talking the way you're talking. Fidel Castro has killed -- murdered -- twenty-five ,thousand boys and men whose only. crime was that they clung to . their democratic ideals; they were against communism. BUCKLEY: No,'I I'm on your side, and ,I hope they 'win; but I say if they get caught at it, they're going to be ,executed and this isn't... Approved'ForRelease 2.001/08/07,: LRDP77-0043 frMi 9.9411A pirt I. Approved For Release 2001/08/07 : CIA-RDF'77-00432R000100070001-9 LAZO: That's right. BUCKLEY:? ...this isn't murder under any law I know. LAZO: If they get caught at .I they get executed., BUCKLEY: If - if King George had caught George WaShin have hung him. LAZO: Yes. BUCKLEY: And this --? this - this wouldI have been something that you and I would have regretted... LAZO: Sure. BUCKLEY: ..but it is not something that would have illegal under any known code. LAZO: No,'I'm not saying... 'HUNT: May I suggest ma I suggest.... LAZO: Excuse me Jost a second. If you'd livin? In George Washington's time you would . have done eyerthinq,Posib, help him escape. HUNT: Isn't thi,diStinction. BUCKLEY: Akz.01 , Well, that's what I did. HUNT: May I suggest this?. that -- that King' i,King George was a constitutional monarch, or at least he was it Tempi-zed monarchl he overthrew nobody to achieve his Position Ati. Great Britain. Castro, On the:other hand... !!. BUCKLEY: In the first place, his. ancestors did. jIn the second place Castro was recognized at the time mere .1talking about by every country in the worldijncluding_theliAtte IStates.,. HUNT: That's correct. BUCKLEY: ....as. the legitimate. leader... . HUNT: However, a.large segment.of,the Cuban.populatio did not recognize him as their leader. BUCKLEY: No, but that's -- that's their risk. You Hyou can always appeal sub specie etermitatis and say, ".Sit terapd tyrannisa and try to put a bullet hole in the tyrant's heart,. and I hope that the aim is Sure, But I think. that Mr. Lazo is confusing people by using the terminology of "murdered," 1"so-called 'criminal'" he wasn't a-to..,taltedcrimitial, he was a criminal... LAZO: They don t consider... BUCKLEY: ...by Cuban law. LAZO: ...it murder. The Cubans don't consider I BUCKLEY: I ,know. I khoW. Approved For Release 200,1/08/ 7 DP77-00432R000100070001-9 nr-fiss,s1T su,$)17.777, if -tvpiirt;rmi' I Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 LAZO: Yes. BUCKLEY: Because... LAZO: They have one rule of morality: anything that advances the conquest of the world by the communist empire is good. You can lie, you can steal, you can kill. Killing is not murder to them; it's a good thing. It's not what we consider murder; I go along with you on that. Anything that hinders them is bad. That's the only... BUCKLEY: I agree with you. But, look', if you -- if you had taken the case of the man who you saw executed to the International Council of Jurists, you could not have made a case that they would have heard...' LAZO: No. BUCKLEY: ...because if -- if in fact he was engaged, and you have volunteered the information that he was -- engaged in counterrevolutionary activity and the crime for that was capital and he received a capital sentence, that -7 tliat's... LAZO: I'm not talking about legal technAogy -- tech -- details. I'm talking about the fact that Castro has murdered, in my opinion, twenty-five thousand men and boys whose only crime was that they clung to their democratic ideals -- taught by the United States, don't forget that. And if you had a -- a Castro in charge the head -- chief of state of this country, relatively and in proportion to population he would have killed five hundred and sixty-five thousand Americans. And that's just ?the 'tilling. Now, how 'bout the people in prison, the political prisoners? BUCKLEY: Yes, if you -- look, let's not waste any time in your trying to persuade me that Castro is an evil man, because I agree with you. I think he's probably as thorough a tyrant as the twentieth century has -- has produced, as -- ? as thorough in his own scale. But we're talking about something else. We're talking about the United States, its intelligence arm, the risks it takes, the bearing of an experience in that kind of affair on domestic life. And it may very well be that somebody like Barker -- it's easier to talk about Barker than about Howard Hunt because we're talking about somebody who isn't' here -- it may be that Barker is totally seized, as the result of his experience in Cuba... LAZO: Totally what? BUCKLEY: Totally seized'-- with a single objective. And that single objective isto do what,he canlorliberty :a fhe ; understands it, - ; Yl' 0LAZO: And for the United States. BUCKLEY:, Right. LAZO: And against the communists, yes. BUCKLEY: Right. Yes, but in -- but in the course of:. 'applying that kind of license to activities he tripped againstH1 an American law and as a result of that has pleaded guilty..,' Now, what is your attitude towards Barker... 't .1? 't LAZO: Well, let's say -- you're coming to L. gate now, right? You want me to speak about the... Approved For Release 2001/08/07 : 94-RDP77-00432R000100070001-9 Water.. Approved For Release 2001/08/07 : CIA-RDP77-00402R000100070001-9 , BUCKLEY: Well, can he ahd, 4, speak' aboUC.Watergate 14iih,aut Violating our code? , im'fii ? . I., -. - ,,;.' t'l . ? . ,,T s, i':. HUNT: I:would think so. But may -; Just' BUCKLEY:. Sure. HUNT: ...a step before you .do BUCKLEY: Sure. HUNT: You had asked me about the failure of intelligen whether or not CIA had expected a popular uprising, in effect BUCKLEY: Yes. HUNT: Or whether the administration had. I have a list. here of four recommendations that I made well before I joined the project, based on my personal assessment of the situation in Cuba. Now, I made this in 1959, and I will list, them. . The first recommendation I made was (inaudike due to network technical difficulty] to destroy the Cuban radio , and television transmitters before or coincident with the Cubani- The third was to destroy the island's microwave relay System just before the invasion begins. And the fourth: discard any, thought of a popular uprising against Castro until the issue has aleeady been militarily decided. r BUCKLEY: And your point is -- what/ That history beaesl you out? ' HUNT: ' My point is simply that we did not at any time expedt a popular uprising. We expected acceptance of our troops BUCKLEY: Well,, this was 1959. Castro was still pOpitl wasn't he? ' HUNT: , He was still popular, yes. BUCKLEY: But he was dramatically less popular HUNT: In ?'61, yes. LAZO: May I speak about... BUCKLEY: Yes. LAZO: ...the Watergate and Bernard Barker, and my Miami friends and -- to understand Watergate, you've got to understand, in the first place, the Bay of Pigs. We've been talking about that. And you've- got to understand the conditions in Cuba at the time of the electton here in order to understand ' why these 'people went into the'--' went into Watergate. And I want. to just -- let me go back to the Bay Of Pigs. just for a second. The Bay of Pigs'wS% a struggle that took place, in Washington, not in Cuba. It was a struggle between the liberal presidential advisers on the one hand and the conservative CIA and the Pentagon on the other. In between these two broups was the new President, who had never been accused of lacking either intelligence or courage, but he sided' with his liberal advisers. And the key point in this invasion was the destructio of Castro's tiny- aieforce on the ground before the, Invaders . , Approved For Release 2001/08/07 .: ClAtlIZDP77410432R000100070001-9 5;11,111.1)77,17:71171,1117.1` - , Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 hit the beaches. This was to be done- by three air strikes of sixteen planes each coming from Nicaragua to the south coast of Cuba. Forty-eight sorties minimum. They knew where Castro's planes were. These were being watched by American reconnaissance, by the U-2. What happened was this. The first strike of sixteen planes was cut in half by orders from the White House. The second strike was cancelled entirely. The third strike, after It was too late to call off the invasion, was cancelled entirely. So that instead of having forty-eight sorties minimum, you had eight. And they destroyed almost all of Castro's air force on the ground, but Castro was left with three jets, two Sea Furies, and they commanded the skies. The Cuban freedom fighters were flying from Nicaragua three and half hours to the beachhead and they had twenty minutes or thirty minutes over the target and than three and a half hours back. I thought of that yesterday when I fleW from Hartford here. Seven hours to be over the target for thirty minutes at the most. And Castro's jets, which were fueling nearby, flew in -- two -- two at the same time and -- and -- and slaughtered them. ) BUCKLEY: What dies' this have to do with Barker? LAZO: It has a great deal to do with Barkers because Barker was one of the high-level men in the invasion, and he saw this thing happen by orders, decisions for disaster, taken In Washington, and he was -- I don't know what the word is -- absolutely humiliated by what happened. He can never forget this. Barker is a great patriot from the point of view of the United States, but he loves Cuba too. And he saw that Cuba ? had been betrayed; I use the word deliberately. The Cuban brigOe on the beach was betrayed. They had been told that they would ' ? have continuing supplies to the beach. They never got any supplie ? The Castro jets sank two of the five ships. They -- they destroy- ed half of the Cuban planes, the free... BUCKLEY: But what -- what -- we're not here to talk about the Bay of Pigs, really, except insofar as it bears on current proceedings. After all, we can talk about Waterloo or We can... LAZO: All right. BUCKLEY: ...talk about Gettysburg... LAZO: May I -- may I just say... BUCKLEY: ...and dissect the military and the state. LAZO: Yes. All right. But.,. BUCKLEY: But go on and tell me what all this has to do -- let's timply accept that the military handling of the Bay of Pigs was catastrophic; everybody knows that. Now, what idoes this... HUNT: Military? BUCKLEY: ...have to do with Barker? HUNT: Political handling. BUCKLEY: Military and political, right. Yes. They ?A)ften go hand in hand. Now, what does it have to do with with Barker, since we've been licensed to discuss... . . Approved For Release 2001/08/07 : 49.-RDP77-00432-R000100070001-9 1,177771,T77,17(1 1111.;'.1,771T,T,71,P!!1'1111771t)i Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 LAZO: Yes. I'll tell you what it has... BUCKLEY: ...his relationship to Watergate? LAZO: Here's what it has to do with Barker. But let's let's come now to November of last year, at the time of the election. Now we know about the Bay of Pigs and we know how Barker felt about that. We also have to know something about conditions in Cuba last November. You don't know much about that, because the attention of .the Americans was -- is focussed on Southeast Asia. Cuba's not in the news. But Castto Is now facing the greatest crisis that he's ever faced. And everything's going against him. His regime is coming to an end. s To understand this you must remember that when he.. came to power the: Cubans were among the better-fed people of the world. That's not Lazo speaking; that's the Department ,of Agriculture in Washington. And today. everything is rationed -- Abutter, bread, sugar, tobacco, everything is rationed except 1"Hate Amer-ice:propaganda, "Hate Nixon" propaganda; tOat's the, lonly thing that's not rationed. Every- hour of theday the control.? 1Jed- radio Tours out hatred for the United States.. ', Now, Castro knows I must mention the sugar crop'. 'Two or' three years ago he promised the Cubans a ten million- ! dollar -- a ten million ton crop. Actually, the Crop last was four million, whichis what Cuba made. fifty years ago,. and:' four million in spite of the' fact that he used the entire country to to harvest it. We used to harvest 1 1So goHlhead. We know about the failure of Castroism,,, - BUCKLEY: He confessed his failure. As a matter of fact, he offered to resign. From time to time, he does. You remember, a summer of so ago? I mean he confessed his own failure. LAZO: Yes. BUCKLEY: But go ahead ?now and relate that, please, ,to American policy. LAZO: Yes. Well, the point is that this year he'll probabTY make about three and a half million tons. And that's their money crop. That's the way they get their moneY to import things. So Castro knows by the United States. , BUCKLEY: Why? LAZO: And... BUCKLEY: Because we would give foreign aid that his only hope l's, o be recognized LAZO: No. Because the United States would then suppll all the spare parts, the equipment and everything else that the Soviet bloc has been unable to supply. .BUCKLEY: Why has the Soviet bloc been unable to supply It? Can't they get it from us? H , LAZO': For one reason, its too far away, They g their petroleum from the Black Sea. 1, , ; BUCKLEY: Why is that too far?.' Approved FOr Release 2001/08/07HCIA-RDP77-00432R000100070001;2__., ?, -1 qt;.Y1 1.7 7717:17,17,MI Approved For Release 2001/08/07 : CIA-RDP77-00432R0001000700019 LAZO: Hmm? ? BUCKLEY: Why is that too far? You just gm on'a,coupl 'days extra on a steamer. LAZO: You mean why is the Black Sea too far? BUCKLEY: Yes. LAZO: Well, it's pretty far Compared to Venezuela. BUCKLEY: I mean if the Soviet Union desires to supp1 Cuba, It,can. LAZO: Well, It's not doing it very well. BUCKLEY: Well, ?then it decided it doesn't want to. It's a political point, right? [Confusion of voices.] LAZO: ?The Soviets don't do they're not doing this very well. ly. anything very Anil. And ? , BUCKLEY: They manage their propaganda pretty effective- LAZO: Except the propaganda. They do that very well. However, here is Castro in November, 1972, knowing that he's through, that he has to die. And his one chance of surviving is to get recognition and help from the United States. He can't get that from the Republicans: His one chance was ' to get it from the Democrats, from McGovern, Ted Kennedy, Fulbright, ,all these fellows that are in favor of doing business with tastro. BUCKLEY: Why couldn't he count on Nixon? After all, who would have thought that the Red Chinese could count on Nixon?'' ? L?AZO: Why couldn't he count on Nixon? BUCKLEY: Sure. If Nixon turned around and recognized Cuba tomorrow, it would hardly begin to occupy.as?much acreage lof the front page as what he did to China last year,. which made him a hero. ? . . LAZO: Mr. Buckley, let me say that I may disagree Hwith you on 'one thing I consider Nixon to be a genuine anti- - communist. And the fact that he has travelled to Moscow and ,I)eking'ilas simply nothing to do with Cuba. BUCKLEY: Why shouldn't he travel to Havana? LAZO.; Hmm/ BUCKLEY: Why shouldn't he travel to Havana? LAZO: This is a different thing entirelY BUCKLEY: Why? LAZO: Because these are -- because the other countries are great countries. Russia has your population. The Soviets have a quarter [sic). BUCKLEY: Our population* Approved For Release 2001/08/07 qfi-RDP77-00432R000100070001-9 ' t'"",1,74'77.1.7177r.1777,77777,771.71,T!'17fr,V7 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 LAZO: Well., the size -- two hundred million... BUCKLEY: Now that you're all American citizen. 1 0 LAZO: And the Chinese have ,a 'quarter of the popola00 of the world. ? , , , BUCKLEY: In other words, he's afraid of Russia, and, therefore he has to be courteous and gallant towards ; t LAZO: That's true..t- BUCKLEY: But Cuba'ssa small 'country 'so we can bunt, LAZO: ...and that's right. ' Cuba's a small enough dictator, who is a tiny little country of eight million people, the size of the state of Pennsylvania. There's no reason to think of treating Castro the way you would the rulers of Russia', _and China. I don't' go along with .that. BUCKLEY: .E'xcu'se me. ?LAZO: it's all right. BUCKLEY: So you can enter into this, Mr. Hunt, since we're not talking about Watergate. Is it your point that because Cuba -- and how would this sound inside the inner councils of CIA -- that because Cuba is vulnerable to American pressure ? in a sense that the Soviet Union is not, therefore it makes tsense to take a ?hard line with Cuba even whilv we're taking a soft line towards the Soviet Union? HUNT: Yes, that makes sense "to me. Castro Cuba, of course, is a client state of the Soviet Union. And I think it's a ?matter of record among people who study Latin American , affairs that Castro has been a somewhat less than,satisfactory iclient of the 'Soviet Union... BUCKLEY: Insufficient servility? HUNT: Insufficient servility. Following the Cuban missile crisis there were a great many .problems. He felt himself' lin a sense abandoned by the loss of his Russian military advisert. ,The Soviet Union itself, of course, is undergoing a time of ttremendous economic stress. The mere fact that they signed ;/1 wheat and corn deal with the United States would indicate Ithat they are having trouble not only fulfilling their internal needs, but this means less for their client states, such as '. 'the Arab world, Egypt in particular -- the United Arab Republic and Cuba. Cuba is very small potatoes as far as the Kremlin ks concerned, LAZO: Of course it is. HUNT: The death of Che Guevara in effect put an end to the type of guerrilla activity that Castro had been promising and promulgating throughout the hemisphere. BUCKLEY: But now wait a minute. Isn't this different from what both of you have been really maintaining over the ' years? You wrote a book called "Dagger at the Heart"... LAZO: 'That's right. .Approy_ed For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 I .1)7VI'M J.T07 Approved For Release 2001/08/07.: CIA-RDP77-0048-2R000100070001-8 .BUCKLEY:: Well, how can a country be small potatoes - lthat is a dagger aimed at our heart? If, in fact, the ambition of the Soviet Union is to rule the world., as both of us think: ' it to be, how can you say that they consider Cuba to be small potatoes? , LAZO: I'll tell you how, because Cuba is an unsinkablnl., aiedraft carrier positioned ninety miles from your shores,., :BUCKLEY: Well, they're not-small potatoes then. . LAZO: Not in that respect. Small potatoes as far as getting rid of the sawed off dictator, of course. He doeSnt,t mean that. Cuba is a dagger pointed at the heart. It's..: ? BUCKLEY:- Well, then, why wouldn't the Soviet UniOn. be prepared to make maximum sacrifices., as indeed it has done? I've'. seen the estimate .of'a million dollars per day. Is that,, unreasonable? HUNT: Not unreasonable, no, F BUCKLEY: Okay. A million dollars a day 4s not something' that you afford as a subsidy for a small potato cliebt state, LAZO: Well, there... BUCKLEY: If it were situated in mid Africa, or something like that, they probably wouldn't pay a million dollars; they wouldn't be worth it. But situated where they are now, it is an important lesion in the Caribbean basin, isn't it? HUNT: It's quiescent. It's quiescent at the time. On the other hand, we have no reason to believe that there are not Soviet military emplacements in Cuba in a state of readiness. We don't know. There have been no American or international observers who have ever, gone there. BUCKLEY: Why doesn't the CIA know? HUNT: I would say because of post Bay of Pigs restrict- ions on the degree, the parameters of intelligence activity directed at the island republic. BUCKLEY: In other words, an American citizen is not entitled to rest confident that the CIA knows whether there are, or there are not, massive Soviet offensive weapons burred in Cuba? HUNT: No,. he's not. LAZO: What was your answer to that? HUNT:. No, he is not. BUCKLEY: Now, is that-- are you making a technical aspersion on CIA? HUNT: No, I am simply saying that as in any government :agency, funds are allocated for certain areas of actiiiity. Obviously Vietnam, Laos, Cambodia, the entire southeast Asian ' picture has monopolized most of the American military and intelli- igence budget for a number of years. ? 1 BUCKLEY: All the people who could predict things were In South Vietnam last year? Approved For Release 2001/08/07 41A-RDP77-00432R0001000470001-9 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 HUNT: And the men and the resources available for ;focusing on Latin American problems accordingly were reduced. iC1A hasn't been hiring very much in recent years. It's been , 'Cut back. They have had to absorb within their own ranks budget [deficiencies. Whenever a new line of activity, support activity, develops in another part of the world -- and again I go back to Southeast Asia -7 the funds have to come from somewhere. They come, generally speaking, from Latin American activities. Certainly U-2 overflights of the island republic have been cut back. They were, in any case, after the Bay of Pigs turned over to the Air Force. The U-2, which CIA developed and utilized to successfully for so many years, was taken out of the agency's hands and put in the hands of the kir Force. There has been a tendency I think within the entire government to do nothing, or if anything is done at all it is to provide the appearance rather than the substantive action. And accordingly,! answer your initial question in that sense, BUCKLEY: So that it isn't that it couldn't/be done... HUNT: Right. A -3UCKLEY: It's that we haven't given it that kind Hof priority. HUNT: We may not, to my knowledge. And, after all, I retired two years. ago, two and .a half. years ago, from CIA.. . At that time, I myself was not confident that there were not missiles or ether offensive weapons in Cuba, ? placed there by the Soviet Union. . BUCKLEY: Well, is it ? when Senator Kennedy says, "Loot, let's, for God sakes, go ahead and recognize Cuba, having first engineered the consent of the Organization of American iStates, on the grounds that not to do so, given our current iattitude towards China, and the. Soviet Union, is anomalous." . understand you to be saying, don't give in to Kennedy's advice lbecause Cuba As having very.,-very serious difficulties, and . Hif we continue to let natural pressures wort against CUba, it 'Might result in the overthrowing. of a despetic governmOts ? 1 LAZO: Not only "might result," it would certainly. .iresult, without any question. BUCKLEY: By when? By when? LAZO: By when? BUCKLEY: Uh-huir. LAZO:. Well, that's a. guess, of course, but very tett, in my. opinion. I.think he's very close to the.end.. The people': are ready to take to the streets. ' All they need Is some kind ,of a little sign from the United States that we'd like .to tee :them- de it, some voice on,the-Voice of America,' or something'- - 'of that kind. , , But Mr. BuckleY, let me'.. let me. :to Watergate..,-,MayA do that? BUCKLEY: Sure. LAZO: And mention,Jny frien back juit A secon 20 Approved For Release 2001108/07 :-CIA-RDP77-00432R000100070001-9: f!. Alinloved For Release 2001/08/67 : C1A-RDP77-00432R000100070001-9 f. ? P BUCKLEY: Sure. LAZO: I've told you about the Bay of Pigs... ? BUCKLEY: You have, yes. LAZO: ,..and I told you how, humiliated Barker felt about that, 'having worked at it and having been blamed for it, being part of the organization. I've told you about conditions., In Cuba. -Then we come to the election. And there were reports before the election. We got-many reports that money Was coming from Cuba into the McGovern campaign fund.... BUCKLEY: You had repoirts frcm whom? LAZO: From where? BUCKLEY: From whom? Yes. LAZO: From Cuba. Communist money !? BUCKLEY: From what people in Cuba?.'You men from friends of yours or what? / LAZO: Well, I have many sources... ,BUCKLEY: Of information. LAZO: Many sources. We didn't have. proof ,'of courseo We just had these reports. If we had proof, it wouldn't have had to be :Investigated. You know that. .. So there were these reports: And 'this group conducted ih. my opinion, a patriotic, honorable counter-intelligence opera ion.y.I...asked.a friend of mine in Norfolk .where Ijiye the other day if he knew what counter-intelligence meant. And he said, "No, what is it?'' This guy is a Harvard graduate. BUCKLEY: No wonder, huh? [Laughter.] LAZO: Well, I said it's a very risky operation, very secret, and It's designed to uncover men, women and activities . working against the United States. And, of course, every country in the world does it. .BUCKLEY: Well, ifthat's true, then the Watergate !people Were direct instruments of the government -- if what iyou say is true. I mean, you don't conduct counter-intelligence.. :ioperations, sui sponde, do you? LAZO: Sui what? . BUCKLEY: Sui sponde, of your own decisions. LAZO: These were very highly trained men. And this question of finding if communist money is coming to the United States is a very difficult thing. They wash the money about .six times. You know what that means, don't you? BUCKLEY: laundered, yes. LAZO: They put it through accounts in foreign countri- es and so forth, You've got to have very good men to check - on that. 7. . ? ? ? ? ' ;1 Approved For Release 7001/08/0 . C1A-RDP77-00432R000100070001-9 ,(,11",''')7:'1,',iri',",`.17'471?..7717,7r:r.r;T.7;c7n71,P717.7117.717.7t Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 They had that report. And that's one thing... BUCKLEY: If this is embarrassing you ought to stop it. According to the... HUNT: It's not embarrassing to me, because it doesn't ? affect me one way or another. I pleaded guilty to six counts. LAZO: Now, another reason they had for going in there -- there'd been, as everybody knows, .security leaks, classified information. Incidentally, I'm not saying for a second that McGovern was in on this, or O'Brien. Of course not. Nobody thinks that they are -- they consider themselves to be patriots, and I think everybody can agree With that. I'm not saying that. , BUCKLEY: You're saying somebody was in on it. Look," you received reports saying that communist money is going into', the Democratic organization... LAZO: Which had a nine million dollar deficit and Which needed the money. Yes. , 4 ? ? BUCKLEY: 'Yes. Right. Right. Now, what, y6u ? now ?you re saying, however, O'Brien and McGovern -know about it.. But all of a sudden you are crediting those soui?ces.... You .r saying, I, accept the fact that there was communist money in ' the Democrat operation,?''but I'm exonerating' the,. top guys of a6f, knowledge of It. ? LAZO: Yes,. 1 am exonerating ;the top guys.., .? BUCKLEY: But 'what makes you accept that allegation? LAZO: Well , because I think 'they're above that. sort BUCKLEY: No, no, no, no, no, no. 'What makes you accept the' allegation that, in fact there was communist money), in the Democratic operation? LAZO: Because, as 1 say, Castro ',s regime is growitg to an end.. And he knows that the only way he can survive... BUCKLEY:, No no, _no, AO. ,That makes, LAZO: .,.is to have McGovern as President of the ? United States. BUCKLEY: ...That makes it plausible. , But it does ' t Validate any... LAZO: It makes it logical. BUCKLEY: Yes. LAZO: Well, a lawyer deals in logict BUCKLEY: Yes, but it's also logical that have gone to China, but he did. [Laughter.] Well, anyway, go ahead. This is a hypothesis of yours. LAZO: A hypothesis? No, it's a conviction from every- 'thing I know. And I have, as I say, many sources of information. Nixon shouldh ,22 ? Approved. For Release 2001/08/07. : CIA-RDP77-00432R000100070001-9- -r; =-71riTur7m.7nr,prih-c ,c771711T,,p, t . ..11111 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 So counter-intelligence. Secondly, trying to find out about the security leaks. And then, of course, as you know, there were rumors that there were going to be riots at the Repoli,. lican convention. They would have liked to have known about that, too. So there're very good reasons for this. And politics is a dirty business. You know that. The Americans all know that. McGovern in his campaign accused -- he compared Nixon to Hitler on three occasions publicly, the Nixon government to the Hitler henchmen. And that's the communist line. In Cuba today whenever Nixon's name is printed in the government papers, the way they print it is N-I -- the swastika -- O-N. That's the communist line. McGqvern was doing that. And this kind of thing is not a parlor game..' It's not tiddly-winks. It's... BUCKLEY: No, but here's what I'm trying to say, Mr; Lazo. Assuming that we accept your hypothesis, then aren't we required to accept that the people who crashed Watergate. were doing ?so at the direction of a responsible official of the United States government? LAZO: Not necessarily. BUCKLEY: Why not? LAZO: Because they could have been doing it with anti-Castro Cuban money. That's possible. BUCKLEY: But counter-intelligence operations are usually done in behalf of a government, aren't they? LAZO: I don't know, and you don't know where the money was coming from. BUCKLEY: You mean it could have been -- according to this hypothesis, it could have been a completely spontaneous thing? HUNT: That's right. LAZO: honorable... BUCKLEY: In the same sense that he spontaneously. actedras,a spy for CIA in Cuba? HUNT: That's right. And certainly before the Bay of Pigs, a couple of years before, even the pro-Castro partiSans !conducted their own counter-tntelligence, operations against 'Castro against Batista. So you-,doOt need necessarily to What I'm trying to say is that this was an BUCKLEY: I thought they were working for the New York Times. HUNT: ...the phrase counter-intelligence with employm a:goVernment, per se, ipso facto. ? BUCKLEY: It could be just spontaneously organized. ? ; HUNT:? By people who know ...what they're doingiet,:. LAZO:. May jsay-One.more BUCKLEY': Yes. ? ? . Approved For Release, :2001108107. cik-RoP77700432ROOqi0007Ooo1:9 ?23 )?? !!. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 LAZO:_ ...becausej think our time isending. , BUCKLEY. Yes. LAZO: I consider that this group are of honor; they re.patriots. I.think that instead of being proseduted: they should .be decorated, 14 -BUCKLEY: Now wait a minute. YoW:can t.:detoOate saMeib for" reakine the law, can yOu?: LAZO: Yes, you can. BUCKLEY: Well, give me $a recent example. LAZO: Well, I'll give you this examplei that when we get our country back, get Cuba back, I can assure you that the first government of .?ree Cuba will decorate this group. I consider that I'm... BUCKLEY: No, I can understand that; I can upderstan that. LAZO: Yes. BUCKLEY: Just as, say, de Gaulle undoubtedly decorated a lot of Frenchmen who shot people, other Frenchmen, who were collaborating with the Nazis. I can understand that. But I . don't understand your taking the position that the American Justice Department is acting perversely in prosecuting people who plead guilty to breaking American laws. LAZO: There are some things which rise beyond -- above that: love of country. Let me put it this way. I feel that I'm in the presence of a great man sitting here, one of the great men of our time. You know, when we left Cuba, my wife and I, we left with two dollars. To lose everything that you've made your entire life, at the end of a long life, is very bad. To lose a friend, the way Barker lost his friend, the way this gentleman recently lost his wife, is much worse. But when you lose honor, you lose everything. And he hasn't lost -- and these men have not lost their honor, as far as we believe. And I can assure you that the six hundred and fifty thousand Cubans in this country have the highest regard for 'them. Don't you be concerned. We're going to help you in every way we can. And you still have your honor. That's the important thing. BUCKLEY: Well, but it's only important I thint for 'you, Mr. Lazo, to acknowledge that, paradoxical though it may 'sound, the pursuit of honor can require temporal punishment. LAZO: .Yes, it can. BUCKLEY: But you must disparage necessarily the people who mete out that punishment, because, in fact,-the two do not contradict each other, philosophically, and certainly not histori- ically. Im any case, the time is u . Lazo. Thank you, Mr. Hunt. HUNT: Thank you. BUCKLEY: Ladies and Thank you very much, entlemen. 24 - Approved For Release 2001/08/07 :.CIA-RDP77-00432R000100070001-9 ' ?. ('? -1:?;;!. ; 1 ? h Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001:9 ' NEW YORK TIMES 119 January 1973 KtEINDIENST VOWS AID 011 WATERGATE ? By WARREN WEAVER Jr. Special to The New York Times H WASHINGTON, Jan. 18?At-s. General Richard a.! KleindiensCpromised today that the Justice Department and the Federal Bureau of Investigation would cooperate with .the Sen- ate investigation of political eavescliopping at the Demo- trade National Committee't 'Watergate headquarters. ' , kleindienst said , the "only reason" for holding back any records of the. Govern- meet's Watergate inquiry would be the passibility of prejudicing St pending *court case or the fact that the material was un- reliable and pnssibly damaging tocinriocent persons. ' ? The Attorney General told reporters at a breakfast meet- ing that the investigation to be headed by Senator Sam J. Ervin Jr., Democrat of North Carolina, was "probably a good thing." ? "The judicial system is net the best place to explore all the- ramifications" of political espionage and the participants ;Who did not necessarily violate tiny Federal law; Mt.' Klein-, *dienst said. The Nixon Cabinet officer acknowledged freely 'that he. exthanged information arid comments about the Waterfate ease regularly with the White Hotise, but he denied that the President or any of Mt. Nixon'S 'aides had attempted to inter- fere with the Justice Departs meet investigation. 'A Little Bit fo Concern' ? "We don't live in little pros phylactic sacks," he said. "I _talk to the people in the White House, and they talk to me. On a matter like this, there was a little hit of concern . . . a ceri' tam rt apprehension legitimatelY surfaced." During a broad-ranging disiS .cussion, Mr. Kleindienst also; did the following: . gReported he had Teconisr. 'Mended that L. Patrick Gray 3(1,--i acting. director of the Feder0 Bureau of Investigation, be? given a permanent appointment and that he did not know why the President had been delay- leg action on filling the post Joemore than two months since * ' the election. . , *qConceded he had opposed some of the recent chances in second-echelon Justice Depart- ment- staff, ? including the re- placement of Solicitor. General Erwin N. Griswold, made at the "suggestion" of *the White Hoese, but that he now sup- ported all file new ' men and women.' ? tiSaid he intended to ternain tis Attorney General until "the President calls ? me- up and says: 'Cleandish, you can serve your country better in Wins- low,. Ariz." " There have been, persistent rumors that he would. leave office this spring or slimmer. ? ifitttributed most efforts at eepionage, which he; HE WASHINGTON' 'POST Map Jae. 14, 1973 ? Offwe of Education Se re nit Contract Involyi 04 H / By Eric Wentworth Washington Post Staff Writer Rep. Edith Green (D-Ore.) said yesterday that the U.S. Office of Education bought it- self a "political headache" last June by renewing a public re. lations contract involving Watergate figure E. Howard Hunt Jr. ' , In a House floor speech, IVIrs: Green said an Office of: Education contra c t review' board approved the renewal at, Its June 21 meeting despite knowing of Hunt's being im- plicated In the Watergate ease, and despite lack of competi- tive bidding and the absence Of contract documents. The contract with Robert R. Mullen and Co., datinehack to 1969 reportedly before Hunt joined that public relations firm, ' carries a eumulative price tag of nearly $750,000. The Mullen firm's major mis- sion has been to etimelate nubile interest in educating handicapped children. Office of Education officials recalled that Hunt setved, in effect, as account executive for the government contract }Ie was instrthnental early last Year in securing Julie Nixon Eisenhower's appearance in a television spot ori behalf Of the cducating-the-handitapped denounced, to amateurs WhO' regard campaigns for anyi 'patty or candidate as "kind of a joy-pop." He volunteeted that the national young Republican organizatvon had often en- gaged in "a lot of truck stuff" bf that kind Within ,Its own ranks. Mr. Kleindienst insisted there had been no necessity to name a special ptosecutor or a Fed-. erat commission to look into the Watergate case and inter.- party. spying. The s hest tern= Mission, he insisted, Was the press, which needed only to avoid being "oversensitive" to occasiona critidism by .its fa tte targets. Approv d7ror Reeae 2001/08/ campaign, at a time when he was also serving as a part-time White Rouse consultant. - Mrs. Green, ? longtime 'Critic of mismanagement and waste In the office's spending of grant and contract funds, said the agency "has again. asked for its political head- ache and deserves no sympa- thy because of the irresponsi- ble manner in which it contin- ues to spend taxpayers'Aollare In . questionable ways while school districts are desperate for funds to continue basic programs." 'Mrs. Green said quirt's name had been linked with the Watergate bugging case the day before the Sole Source Board?the Offite of Education panel created t6 Screen proposed contracts that had not been subject to corn- petitive bids?approved con- tinuing the Mullen contract. Indeed, she said, she. had; ,been informed that Hunt's1 home and the Watergate easel had been discussed at the board's meeting. "It was ttilg.1 gested at the meeting," . she; continued, '.'that approval of 1 .this sole source contract1 could prove to be in ember, .rissment. to the adridnistra- tion. Nevertheless,. the contins tring contract Was funded." . WASHINGTON POST 20 JANUARY 1973 eT itne.ss Can't Trace, Wireta og, By Lawrence Meyer Washington Post Staff Writer ' Akey government 'witness In the Watergate 'bugging Alfred C. Baldwin III, :testified yesterday that he. ,eouid not remember the name 1 :be put on an envelope contains' irig logs . of illegal wiretaps and that he had no "personl. iknowledge" of who. received ;the logs. , taldwin'S testimony, big first public 'comment :under fith on the subject, appeared' tri &inflict with earlier report? Prat he could remember the :fiattleS of three White lItiuse. ior Nixon. Campaign aides tol Whom memos describing the Wiretapped conversations were addressed' . In court yesterday, tlaldYilti described- how his boss, seen.' rity coordinator for the Corn-. mittee- for the Re-election ot the President, James W. Me4 Mrs. Green added that ? government audit on an earl Her phase of the -contract with Mullen had challenged certain; costs totaling $24,472?inclu0 leg excessive costs for prodttei ing a film strip. ; Minutes of the board Meet - Ing that day, the Oregon law maker said, indicated the; panel approved continuing the Mullen contract despite the absence of a contract proposal, and related paperwork. Office of Education files ,showed, Mullen had submitted a pro. posal and budget earliet?bttb confirmed this material was' not at thb board's meeting: ,Edwin W. Martin, associate, cdmmiisioner of the Office. Oki Etlucation in charge of ite, handicaPped-education ;131. thins that he and others'hadi tions that he and other s had been generally Pleased With." the quality of the Moil& irnl'stksofk. . Martin denied Mrs.. GreeA further assertion that ? mos tor in continuing the contract: ? presumably was Htint's Mullen's Wlilte Hottse infittl Mice "vis-a-vis funds for C/Ei handicapped budget." ? ? te; deliver 'the' loge kr the fee, election committee headquarl 'lets. Baldwin was questioned. Assistant 'U.S. Attorneyli Seymour Glanzer. ? ? ? - McCord, along with 0. dor.,: don Liddy, also a former rei election committee official; AS', .on'trial on charges of conspirl aey, burglary and illegal wirc-J tapping and eavesdropping stemming from the June ? 17; break-in at the Democratic NM tional Committee's Watergetd headquarters. Five other nick' Including former White House aide E. Howard Hunt Jr., have: pleaded guilty to the charges..;i The trial ended its semi week yesterday in U.S.' trict Court before Chief Judgei t, John J. Sirica. Ordinarily, Baldwin testi., fled, McCord came to' pick tip the logs at least once a day Iry 'Baldwin's room In the Howard. Johnson Motor 'Lodge where; he monitored the telephone conversations In the Demo - erotic headquarters across the. street. "On one occasion, I delivoti;. ed the logs that covered a twb-, day period to the Committeei for (he Reelection of the Preel !dent," Baldwin said,. exPleiti:'1 ihg that McCord. "Instructett?, me -to take" the- loge.- the, torninittee'l ;;. Tii of the' fact that bevies being .delayett in Mitin11." ' 'The (locations' and attaVieNI IC8a214150f/728titAeN0816000740fitnerAiid do IAA. tOctiir went like this': " ' s2.? ? rnmr-r,Trgrmrtc., 1-17.71Trr."7": 7-7,-"rprrt77.777777777.111171117.1)V, Ur? Y,1 ph; ,? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 1What per lectbflime We're lag about?" I ? -? ?.': ?? hApproximatelY ?;-June .6 or:7; It *RS' arWednes. "..cley of .that iveek.e ; ?-? "c. Glanzer:. "Can- you tell what " Mr.;McCord's, instrue; Mons were td yon and how it ? ?.''Came, about, he gave. you -the instructions?" . Baidivin: ?"The .'instructions ' Were to lake .the logs,- place them inside manila enve,. :lope, then, staple the envelope' and over thdstaPle put Scotek? , tape.. He .(McCord). then - fur.,j ?.nished Me a name. I. wrote the; hame down On a piece . of pa-i , per, , later : transcribed thatj name to theonveloper Mantel.: "As yOu sit Mere; now do .You recall. the name, . or: that person or the given you to. pet ?On there, if !there Is such a person?"? . Baldwin:."I do not.". : "Do you know Of !your;orktn .Personal knowledge! who the logs were .delivered,to; lialdwin: "No, I do not."' Glatizeri."Where did you 'de., liver. the logs in ? the envelope?" naldwin! delivered 'theni to a guard at the ?Committee for the Re-election of,thoprefej ? Baldwin's lesttMony COntin , .ued to', f011Ow, a published ; count:of an ihteeview ?he' gave' 'to, the :Los Angels. Times which Appeared hi The Wash- trigton,Post ofi Oct. 6. In that interview: :Baldwin also said he could not remember to Whom he had addressed the logs. .Baldwin IS reported to have. .told ',others, The? Washington losti/ has learned,, that he :bould remember the names of three. White House or Nixon Aides, Who, received memos de- scribing . the telephone conversations: White -House congressional liaison ? William' E.. Timmons, and campaign aides Robert Odle. and Glenn Sedatn. ' , ; Sources close to' the Water- gate investigation have said that Baldwin named Odle and Timmons from memory and picked out Sedam's name from a list when interviewed by the FBI. All three have defiled re- ceiving the ' memos. Odle's name is on ? the. 'prosecution's witness 'list. No mention has been made of the :other, two inen at the' trial. . Prosecutor Glanzer . asked Baldwin if ,'he lied "personal knowledge" 'of who receiVed the logs. The phrasing of the quegtion ? and legal require- ments inured Baldwin from answering in the affirmative if any knowledge he had was Second-hand. Baldwin, a 36-year-old for, ther' FBI agent who -has been given immunity from prosecu- tion for his testimony, de- ecribed his activities in a flat. Matter-of-fact tone, without any sign of emotion. Or hesita- tide *heti asked S question by Glanzer.' ' ? McCord. ,Baldwin said, *anted Mtn to monitor "any eonitersatiens'involVing?Pnlith real strategy and Mi PertOriall nature. He (McCord) wanted 1a11 conversations recorded." ' At one point durieg ;Bald- testimony Judge Silica interrupted the proceedings, the:jurx. out of the Oat. **own and atinounced that the U.S. Court of Appeals had bar- red the ProSecution from al, lowing.any testimony coeceric, 'Ing the contents of the conver:. s,titiont : ,that Baldwin oVet'.." I I Sirica read a 'brief order from Chief Circuit Judge Da4 Vid L. Bazelon ? and Circuit Judge'J. Skelly Wright. Cir... *tit Judge George M. Mac- Kinnon dissented? saying he 'Would permit the government to "refer to the? Contents in', general terms." ? Glanzer said the prosecution' will decide- ? 'by Monday ? whether it will appeal the de:: ? Sirica yesterday released his written opinion in the matter, which was? overturned, by the appellate court. The opinion: argues that the government' dhould not be limited to thd "minimum (proof) necessary to avoid a judgment of acquit.. tat" but rather should be al, fee-tdef'.../01: 13. /973 THE NI7AstnNaT0rt posT rtness can't Recall FicisOed :to '''cOrrobiretate-Alaid; :win's assertions that he monte ;toted conversations by permit.; ling .hine,to describe what he heard. ' . ? ' - In his testimony Yestettla 'Baldwin also Said that tibtutt ,the ,end of :May --1:',May trtd '29 MCCOrd went into the I:/efitheratie Party's Watergate i Offices:one evening. "Mr. Me- ,Cord appeared' in Mr.' Oliverlf office," Baldwin recalled, de, :scribing what he said? he 'could. :see, frOM his hotel room: "He: pulled the blinds shut."' ?Iri the 'early morning liottrit Of June 17,' When Washington' *police caught ?McCord and :the four,' :men from have pleaded guilty le, break, ing'irtta the-DentheratiC head. quarters Baldwin described how: radioed 11- ?WaiIng over.. d'::.-Walkie-talkie. McCord had..givert?hiet ? "Are yotrreading title Are YoU',readitig this?' ."., 'Baldwin recalled.' a? voice saying' over the:Wei:hie-talkie ',after, he I. sued the warning. Theti Bald- win, Said the Voice..,tOld him to stay:in ,his ,hotel- roenr,;."Prri coming up." - ' Moments 90st K ? c?, # 4, a-attic:lila*, Hunt, Who been described by the Miattit men, as their leader,. emerge frOM the. Watergate cent*. and :walk hnrriedly toward', car. Baldwin said he also an Liddy come out, but "couldn't,' be absolutely -1)W live" on 'his identificationAf Liddy. "1-didn't? See thenf164 getherrtaldwin said. ? After the two men got intO ear and,drove awaY, Baldwin, said', if:voice', came over,' th Walkie-talkie,and said; "We're on our way.' "I'''rheii Baldwin said he heard anoth volee. Whispdr, "" Ihtf:Y'Veriti us! It Baldwin said he then hear McCord say over the walkie talkie," 'Are You metropolitan. " ? sled' another ,?yeice"; day, " 'What is that?! , , 11. Hunt appeared in Baldwin's; hotel room soon after, Balc1.1 win said, made 'some phone) calls and?thett 'told Baldwin Peck the electronic equipment and take it to McCord's fume:4 ?Glanzer asked taldwiti?if said anything else to. Hunli,ii,! asked hlmr Baldwin Int* swered, "Whether or, not.it ineiint that I was , 'et 0 ho ..Got Tapped Lo By Lawrence Meyer, - Wanilintton Poet ativff Writer Saying that "all the facts have not been developed by ei-: tiler side," Chief U.S. District Judge John J. Sirica inter- vened in the questioning of a key government witness in the Watergate bugging trial yes- terday to ask him the name of a person to whom he ad- dressed logs of illegally tap. ped telephone conversations., The witness, Alfred C. Bald- win III, repeated that he could not recall the name. During subsequent testimony Baldwin said the person had a first name like a last name and a "German-sounding last name." At one point, Baldwin testi- fied, he picked out a name from an FBI list similar til" the name of a Nixon campaign aide. But that name "wasn't picked as being the person," Baldwin said. Sines repeatedly has said that he intends to find out who else?if anyone?was in- volved in the Watergate inci-, dent. He prefaced his ques- tioning of Baldwin by assert- ing that it was "perfectly proper" and that he was not "accusing anybody of any wrongdoing" by asking the questions. The questioning t?'f'curred aS the Watergate trial) mtered its third week here. s'wo former wad doing was legal. 'Baldwin,: "I do not know, your, his officiate of the Co iftnittee for tutor:net, Fill agent who has Or.' Baldwin I? 26? l'When did yothava ii:1 001/08/07 : C1A-RDP77-00432R000100070001-9 f,,fmr;10,,,vellyin,171fT1,11,111y.''To Y'Yty,711:p119:1- the' Re-election of the Pres!, dent,- James W. McCord Jr: and G., Gordon Liddy, are on trial on charges of conspiracy,. burglary and illegal wiretap- ping and eavesdropping in. connection with the June 17 break-in at the Democratic NA- tional Committee's Watergate headquarters. Five other 'men,' consultant E. Howard Hunt Jr., already have pleaded. guilty' to the charges. Baldwin testified Friday, that ordinarily he hinted over to McCord the logs of tele- phone conversations he moni- tored in the Democratic Party headquarters from ft hotel across the street. On one occa-1 sion. Baldwin testified, Mc- Cord instructed him to putl some logs in an envelope, put -a name on -the front and de- liver it to A guard at the re- election committee headquar-?, ters. , Asked Friday if he could re- call the name, Baldwin said he Could not. Asked if he knew, of his "own personal knowl- edge" who got the logs, Bald- win said he did not. Baldwin. returned to the wit- tiest; stand yesterday for cross- examination, Under question- ing by McCord's lawyer. Ger- ald Alch, Baldwin testified that he was monitoring the telephone conversations under the impression that what he. been given immunity froOli prosecution to testify, said he; had this impression because several factors, Including cor- respondence McCord had', 'shown him with the Federali Communications Commission! ... and that MCCord worked for the re-election committee, .. "And wasn't another one o, the factors," Alch asked, "yottE, knowledge that your surveil' ,ance was in some way ton.) nected with secdrity?" "Connected with ' security' and. to the people it Was going' , . to, that is correct," Baldwinreplied. ? Alch has cotrded that Me,. Cord was involved -in bugging the Democratic headquarters but asserts that the bugging was legal because It Was lin-, tended to find out about poss0'; ble violence aimed at the- re... i, election committee. . ' . , After Alch completed his cross-examination,' Sirica ' ,ex.' cused the jury and began as10 ing Baldwin questions. ? Summarizing Baldwited earn Her-testimony about how he sealed the logs !nen envelope addressed thel envelope and delivered It to the re-electin committee heedquarters, Stele asked Baldwin, "What is' the name of the Party (to . whomthe envelope was' fiddreised)r Approved For Release cv) APproved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 ? 'of memory as to`the name 'or that party?" Sirica asked. "The first interview ;With the -F131, I believe, we sent over several names at that time and we went over several 'names thereafter and the only: thing I can recall is when the name was, given me?the first liame?V assumed it , was the last narrie," Baldwin said. "What wail :the first name given you?" Shies asked.' "I used the reference Glenn, because a friend of mine, his last name is Father Glenn," Baldwin said, "and I used that as a reference and we tried to establish the name of the indi- vidual." ? Sirica did not pursue the point but later; under cross-e* amination by Liddy's lawyer, Peter Maroulls, Baldwin ex. Panded his explanation, saying he "wrote the first name down Its being the last name . .? Then T was given the second name that. I could not snell and as I recall It was a Ger- WASHINGTON STAR 19 January 1973 CARL .1". ROWAN Man-sounding naerth."'' Baldwin also said In talking , to the FBI he "used an anal. ogy" when he suggested the name was Glenn. Glenn, Bald- win said, "was not the ,name;? It was just 'given as an anal. Maroulis . asked Baldwin if he remembered telling two 'Los Angeles Times reporters during an interview that in one session with the FBI, 'agents had read names to him and he had picked' Our the name "Sedan." ? "It wasn't picked as heing, the person," Baldwin replied., "It was one ,of the . names% picked that we pulled' out: from. a group of, names td, think about." ? - ? "Mr., Baldwin," lMaroulis asked? 'did You know at the time that you mode that state- ment to The 'Les' Angelei Times that there waS a man' named Glenn .Sedam who worked for the Committee to ,k-elect the President?", Five of the Watergate de-1 tfendants now have pleaded . f?guilty to conspiracy; burglary ? hand illegal wiretapping and i'eavesdropping. ?? ? That in itself is hardly the, 1,stirprise of the year, consid- 'iering that the last four to: ;admit 'guilt were caught with t heir trousers at half mast. Even though the five who 'have admitted their guilt :could get ? prison terms of up to 55 years; even though they ,luive admitted to one of the ? most sordid and serious as-, ? ,eaults on our system of free elections in this nation's his- tory there is' something dis- quieting abput their confes- sions. ? It is difficult to escape the. feeling that these confessions flow out of a new conspiracy ? to ensure that no trial ever . Occurs . where the American people will learn the whole ? truth about who ordered the burglaries, the espionage that `incredible corruption of our election precesses. ; The suspicions ,wallow, like Maggots. on an August (lay, that the Confessors are sacri- ficing themselves, honorable 'to .their understanding that ? ,"if you are caught, the sec- ? retary , will disavow your so lhat the public will never ';knOw. just how far into gov- ernm cut the rottenness :reaches.' '1 had read it - in the newspaper; prior to that I did not," Baldwin said. Maroulis then turned his questions to ,another subject. ' In other testimony yester- day, M. Douglas Caddy, a tWashington lawyer, testified that on the morning of 'the break-in Hunt called him on the phone and- visited him if his apartment to arrange to retain a criminal lawyer% Caddy also testified that he Spoke with Liddy in the earlY,,i Morning hours of June 174 shortly after police had ar- rested McCord and four other men inside the Democratic headquarters, and I.,iddy re- tained Caddy to "represent him in this case." ' Caddy said Hunt had called him between 3:05 and 3:15 a.m., approximately t h Same time that Baldwin 'said Hunt made a phone tall froin, Baldwin's hotel room After ;Baldwin testified he saw Hunt' and Liddy, walking .hurriedly' mom the tlititeigate'Hoter 9, Caddy's testimony about' ;Liddy retaining him as hiS', lawyer was given over SUN' ibulls' objectioe that Liddy had e constitutional right to a law- 'yer and the prosecution was Making his , exercise of thati !right appeee to he -; , Sirica itterruPted Caddy's; testimorlY to reed an instrue.i lion to the jury?prepared bel ;the proSecution?that it was to 'i,'draw no adverse inference ' from the fact 'that Liddy r? tamed a lawyer but that iti could consider the.. time atuir 'other circumstances surround; ,ing Liddy's aetion. , Caddy said later that 'hel and another lawyer, ?Joseph' ) Rafferty, went to find out about the five men who were arrested Inside the Watergate. CitddY said none of the ; fre had coed. tacted him between tie! tithe Oil their arrest and hia vis,! to the. C. Superior Court tie! ?th4i; isecond police district. . ' , but More h Just a Ca , Maybe the tragic death of his wife in a plane crash did Motivate the guilty plea of E. 'Howard Hunt Jr., the former Central Intelligence Agency ,operative` who was working as a White House consultant and apparently masterminded the political spying. Maybe grief did convince Huntthat he could not undera go a lengthy trial. But how do we understand those guilty pleas of "the Miami four "?Bernard L., Barker, Frank Sturgis, Eu- genio R. Martinez and Virgil- io II. Gonzalez? ' , Is it just that they were caught red-handed in Demo- cratic party headquarters at 'about 2:30 a.m. on June 17 "and that they have admitted guilt on a certain assumption that any jury would find them guilty? Well, why did their lawyer, Henry Rothblatt, refuse to represent them in the guilty plea? What's with. all this cryptic talk by Roth- blatt about his ex-clients "following orders" in "a rad. Rau fashion"? , Then there is the spectacle of Judge John J. Sirica ac- cepting the guilty pleas and then trying futilely to get ?"the Miami four" to tell him the whole nasty truth even when the four were not under, oath. ' Barker had wound up with $114,000 in his bank account,' but for the life of him he just couldn't' tell 'the judge' a thing about who gave it,to; him. ? "I don't believe you," the, judge said to Barker, thusl putting himselfalongside millions of Americans who, long 'ago were convinced that the money came from Nixon campaign funds. The judge apparently had,? ? read the newspapers and, knew about all the rumors that higher-up culprits in this bit of political criminalityl 'gave "the Miami four": enough money and promises; to' induce those confessions, ? Sirica wondered about all legations that someone was, still paying the four. No, no,; no, they replied.' The judge then asked them point-blank whether anyone suggested they might get "executive clemency or, commutation of sentence," or to put it less delicately, whet h er President Nixon. would spring them from priv, on if they kept their mouths Shut and took their medicine, like loyal but lousy spies. ? ? They produced more har. liicony than a barbershop qUar-' tet ? as they chorused, "No,. your honor.', ? . It is still too early to regard this courtiown drapla,as.the er 'great cover-up. Still to RAI trial are James W. McC..rd Jr. who was Security come'. inalor of the Committee fort the Re-election of the Presi. dent at the time of the Wa- ' tergate raid, and G. Gordon, Liddy, a former official in the White House and on the' re-election comMittee, W 'shall see whether they ever testify under oath, and hoe; zealously the prosecution' probes them for the full: truth. Then, Judge Sirica lies tough reputation of handing out rough sentences. Not only, will his sentences be watched, closely, but the media and a lot of other Americans wilt keep a long eye peering to, Ward the day when the White' House starts fumbling withr the key to the prison. , On the surface, the Watert gate business is such a ludie crously bungled caper that I Seems a shame to pay .so; much attention to the glers. But the hard reality rd2) mains that it was more theiti just a "caper"; it was aie, atrocious example of men It political power seeking to en-1 trefich themselves throligki 'lawlessness a n d obnoxittad police-state tactics. That `rig why none of us can afford'" view lightly either the ine dent Or the remarkable cousi proceedings how under via' 27 Approved For Release 2001/08/07 : CIA-RlDP77-00432R000100070001-9 I 'i,"7,77.1171717":1;777"1:7771171.71 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 tittWA11ThGTON 'POT iVed;ie;der, Ja;t. 24, 1971, Liddy ',cute o t By Lawrence-Meyer Washington post awl Writer Testimony in the Watergate iniging trial yesterday indi- Pated that G. Gordon Liddy, . described IV prosecutors as '? the "boss" of the bugging of' 7) enlocratic headquarters, had,. In fact, ? been ? reporting to Tither persons. , ? - Answering ..questions from . 'Chief Judge John J. SIric?, former Nixon :campaign treas-. iver Hugh W. , Steen Jr. re-;? Palled, a brief Conversation: With Liddy on the morning of June 17, only .is new hours of; ter police had arrested five. Men inside the Watergate. . 'Sloan quoted' Liddy, Who! .?.Wite then finance counsel for the Committee for the Re-: Election of the President, as saying to him in whet. at com- mittee headquarters: ? ? "My boys were caught last ,flight. I made a mistake by.us ding someone from here, which I told them I would never do., I'm afraid I'll lose my job." -, Sinks did not ask Sloan it he knew who Liddy meant by "them." Sloan, a prosecution Witness, was dismissed after. 'defense lawyers said they had no questions to asktim. ? Earlier, Sloan testified that Pinance chairman Maurice' Stens and 'campaign 'director John N. Mitchell approved dis- bursements of about $199,090 to Liddy. Sloan also acknowl- edged for the first time that. he resigned from the. commit- tee last July:. because of the Watergate incident. In addition.to Sloan, the three 'other Nixon re-election commit- Ace Officials who were listed as proaecution witnesses testified yesterday about matters relating to Liddy and gommittee security. director James W. McCord Jr. News accounts since the bug- ging have alleged that the three knew of the financing of a wider _espionage operation against the ,Democrats. But that operation Ji not mentioned in thelVtiter- 'gate indictment, and none of ?the four was asked any questions about it. . In other testimony Yesterday: ? Sloan and .Herbert L. Por-' ter, scheduling director for the re-election committee? :both testified that they literl destroyed records that showed! disbursements they had made to Liddy. ? Former deputy eampaign' director Jeb. Stuart Magruder said he knew nothing of the il- legal bugging activities but he did give Liddy political intent- Once gathering assignmerlis. Magruder gave only one exam- ple of such an assignment and was not asked to give more. , , ? Magruder testified that be .hired Liddy for a legal job Avith the re-election committee ?011 the recommendation . of White Hottse counsel John e liLeporl ers, itness - Dean III, the man President Nixon later assigned to inves- tigate the bugging. ? Porter said $100,000 was 'allocated for Liddy to gather Information on possible vIo lence during the campaign by having -persons Infiltrate the ,Yippies, SDS and' ? other "radical" groups. ? ? ? Principal Assistant U.S. Attorney Earl J. ? Silbert at- tacked a column by. Jack An-, derson for: "outrageous specu- lation" and "virtually scandal- ous ? reporting" because the column suggested that initials `found on-s piece of evidence Might be those of re-election 'committee officials. -In fact; Silbert said, the initials were those of three FBI agents who had marked the evidence. ' .. ? Robert C. Odle Jr., admin. letrative director of the re- election . committee, testified that McCord had given him 17 memoranda concerning-Mc- 'Cord's activities 'as security 'director. Odle said "nothing we ever received would indi- cate" that McCord had set 'up a 'listening post in the How- ard Johnson's Motor Lodge to monitor phone conversations from the Democratic Party's Watergate offices across the street. Liddy and McCord are on trial on charges of 'conspiracy, burglary and illegal wiretap- ping and eavesdropping stem- ming from the June :17 break- in at the Democratic Party headquarters. Five other per- sons, including former White House aide E. Howard Hunt Jr., already have pleaded guilty to the charges. .Sloan, testifying in answer to questions by Silbert, saki he turned over a -total of about $199,000 ? to Liddy from the time, biddy joined the re-elec- tion committee until ? June ,1972: Sloan said that before. the April 7 effective date of hew federal campaign finance' reporting law, he made a final 'summary financial statement and turned it over to Stana:. Sloan said he "destroyed the ?eitsh book" -containing actual records of disbursements. Sloan first gave his account of his hallway conversation with Liddy under questioning from Silbert, and said he did not know what Liddy was talk- ing about. He repeated it when Sirica sent the Jury out and questioned Sloan himself. The judge then asked Sloan how Liddy was to use the money _Sloan had given him earlier. , "I was merely opthorized" to distribute the money Sloan toil :Swered. "I have no idea what the purpose was.-- ? ? "You ? didn't ;lineation, Mt Magruder' about the purpose of the $199,000?" .Sirica asked.? ? ; "No, sir. I verified with Mr. Stens and Mr. Mitchell. ,Ile ;(Magruder) was' authorized to,' ''make those," . Sloan. replied. Then Sirica Again asked whO' lie verified it with, Sloan rel 'plied, "with (former Cbm- merce)'Secretary Stang and 1 tdidn't directly but he verified. it with Mr. John Mitchell." . 1 ?f "Didn't anybody Indicate what this money was to bd`, :Used' for?" Sirica asked. 1 . ' "No, sir," Sloan replied. 1 . ? Sloan is known to have told friends that . he resigned -bei ,cause-Lin the words of one-4 -"he saw what was going-on' 'tit the Committee for. the Re4 election of the President afteti the . bugging. InvestigatorS -have said that Sloan cooperated fully,i?n their inquiry and; .that they were convinced he, ,did not know that. the moneyi be 'handed out would be spent 'fcir .undercover aetivitieti against the Democrats. ??,: , ??:, Magruder, who left the re-4? election committee the day af-'? ter the election to direct prep- arations for 'the President's! Inaugural, testified that Liddy' was hired in December, 1971,1 to do political, legal and intel-1 ligence work, In late Decem:i . . , her, Magruder said, he andl Porter discussed potential, problems of violence they: might, have aimed at the ? "surrogate candidates" who would be campaigning for: Presideht Nixon, e Since . the stand-in ' candi- dates would not have Secret, 'Service protection, Magruder' said, "We felt we had to ,estab:, listi our own lines of commii- nitation. Magruder said he' met with Liddy and Porter' foit five minutes and Liddy then, began gathering intelligence. In January, 1072, 'Magruder' said, he gave Liddy an addi:, timed assignment to .find out what ? kind of demonstrations!, Were planned for the Republi-", can ?coevention,. which wasi. then scheduled to beheld in, Sart Diego, For the two pro-.: Jetts, . Magruder (laid, I.Jddy,/, authorized to spend 1250,4 000. . ? .. i,.. Magruder said he , had eti?4: :phasized to Liddy that "acts Of ? otte comfnittee would he hen- Aled in a legal and ethical manner." ?? . ? . ,!. Asked what ?information Liddy had proVided 'about the convention? from the $150,000, .intelligence operation, Magru- der said Liddy found out that -instead of the expected.100.000 demonstrators. the Republi-' ;tans could ekeept. 250,000. For ;?this reason, lite part,' the',a0n.. ?.vention site Was changed to ,Miami, Magruder said. t? Magruder said he never igave Liddy .any Intelligence "assignment. regarding the. Democratic National CommlV- 4ee,or Sen. George McGovern :On brief cross. exaininatiori McCord's lawyer, Magrude' said McCord "was one of our? "more ?outstanding employes.' k,Liddy's lawyer, Teter ' Marl %otitis, did 'not question Magrtii der. Porter :testified that he Mined 'about ., $35,000 frOtt 'Elopn to give to LidtlY., It Wit4 ? `i hot, explained yesterday whY; ,..Liddy. got Some money, 'd14 teectly- from Sloan but had, tO!, : deal through Porter, for othe ' :money. In ari, according to?teee ttimony yesterday, Lidcly? got, about $232,000. No accounting :was given as to how that! ; Money was Used by,Liddy. Sit; 'bert has said the government' e can account for only nbout, ;$50,000 of the total ?-e't , Porter said he "threw away'' the records he had of the diSi! libursements he made to Liddy': i'Porter said he got three pieces of information for the money he gave Liddy, concerning a. :,,"left-wing extremist group. in i,New Hampshire," "tt right- wing extremist group in Mi- ami." and a "heavy potential problem in San Diego." Neither Liddy's lawyer nor. McCord's cross-examined Per.' ter. Odle was the first of the rei election committee Officials to testify. Odle said one of Mc- Cord's jobs, as security direc- tor or the committee was "to, be concerned with threats of violence against the buildings in which thee committee was hoUsed." McCord made 're- ports on possible violence t him, Odle said. Seventeen memo's from Me-, Cord to Odle, Including the May 30 one, were introduced in evidence yesterday by Mc- Cord's attorney. It is not known whether the 17 meimail were the only ones that Me? Cord sent to Odle. Most of thd Memos simply suntrnarie4 lipws reports of .demorietrni bonibinge and other ine4 ? dents Of violence.: ? ? 7' ? ? ;4 , One refees to the 'Pentagon-, thatthe bomb was ipperehtlY' ombing of May,'.1972. It Baste 'packed into 'well cavity 1)0: hind a small steel door"An thit ,Pentagon washroom ? italic' ""Such ditoris Ifi, committed Prestrooms' have been seeled," ;McCord Said in the memo: Another Memo dated, Deck 3, 1971; calls for' the control 1 Recess to the offices Of Mid Cointitittee tot' the Re-pleati Approved For Release 2001/08/07 : CIA7PAP77-00432R000100070001-9 177777,'-1.1171)171 !jr-117.1777777'1.71 ? ? n . ? , ,1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100076001-9 1.the'Presinetit ??!' IF 'One of the memos to Odle, dated May 30?five days' after 'the wiretap and dealing with Vietnam Veterans Against the War?began with the . phrase !'A confidential source,' of ithOwn reliability has advised phrase is .almost 'identical to one that Alfred C. 13ald*in III testified was used by McCord In, identifying the. source' of wiretapped conver- sations. 'Investigators, . how- ever, say they . are convinced' the 'information 'did net tome' , from overhearing ..Nviretapped- tonVersations.. ? In his testimony Manday,? Baldwin said he could not re, member the name, of, the per- 'son to 'Whom he. once ad, dressed a package containing inemos of wiretapped eonver, 'sationg, and that he 'did 'net ,know from his "own personal knowledge" who received oth- er memos containing informa, Von from the WiretaPS. r, Earlier, The Washington Post reported ? that Baldwin :had told the FBI he saw me, mos Of wiretapped conversa- tions addressed on at least 6ne occasion. to William Tim, Mens: special,' assistant to President Nixon for emigres' gional relations', and to Odle: ' Following' Baldwin's testi - Molly on 'Monday, .investiga- tors said that the FBI's report of Baldwin's 'original staZe- ments was unclear and had; in fact, referred to memos to Timmons and Odle which . were not based on information ob, tamed through wireta4iinfl. When they examined the mos sent to Timmons and' Odie, the investigators said,. they could find no evi4once that, the contents were rOtif.-? tit'the ? wiretap at.... riemo-'' eratic headquarters. Prior to yesterday's testi- Sirica held a hearing to 'determine if four defendants imIto. have pleaded guilty Should litive their bond reduced. The four,? Bernard L. Barker, ',rank Sturgis, Virgilio zales and Eugenlo.11. Martinez are being held in the'fiti. in lieu', of $100,000 sorely ,bonds for each. Bunt has 'post- ed the bond. ; At the' 'conclusion of ,the hearing, Sines denied 'the re- duction, stat! itg that :"tlie temptation, to flee . folloWing. their plea of guilty is presumed he much greater" thamit Was before their plea. ',TM* .have had a taste of life in jailri Sinks taid, "and i; 'they did not find life enJoyabla : ;or agreeable there." ??; !t; ; e . . . ?,!. nEwnEr7 2 9 JAN 1973 Now, It's the Wat r te Two First they, were the Watergate Seven, I land Martinez reportedly still get stipends then the Watergate Six?and last for their roles in the Bay of Pigs fiasco.! week they became the Watergate Two. ! FBI agents working on the Watergate Four more defendants decided, to.; 'investigation feared they might uncover; plea.d guilty in the explosive politicall even closer CIA connections, NEWSWEEK espionage case?as former White House l learned. Tracing the route of Republican aide E. Iloward Hunt had, done the ! campaign donations to the Watergate week before?intensifying the drum- I crew, FBI agents initially worried that ; fire of speculation over the inducements I they had, stumbled into a CIA transfer they may have been offered. There system; I were reports that each mail had been specifically, they were eon- ? ? offered up to $1,000 for every month; cerned that a Mexican tnitldlernan who had handled GOP funds migl also have spent in prison after switching his plea.: t as- Some stories traced the funds te? "friends", been a CIA contact. But th,, CIA sured the G-men that' they bad not in Miami's Cuban community, where the ; ; f struck any current agency oi orations? i our had strong ties; others suggested, the suggestion being that I and !- McCord might have reactivate; net- work they remembered from tti?ir i ernment cloak-and-dagger days. that the defendants were still getting: money from the same source that had ifinanced the Watergate operation from 1the start?presumably the secret coffers I of the Committee for the Re-Election of the President. But NEWSWEEK learned I that a new fund, to provide financial ;support for the defendants, was set up after their arrest by some well-heeled ;Republicans who hoped to limit further embarrassment to the party by short- circuiting the trial. The defendants weren't saying. The I:latest to bow out?Bernard L. Barker, 'Eugenio Martinez, Frank A. Sturgis and 1Virgilio P. Gonzalez?first fired their law- yer, Henry Rothblatt, who had insisted ; on a trial, and then codessed ? almost eagerly to the charges of conspiracy, ! burglary and wiretapping (maximum sentence: up. to 55 years in jail and $50,000 in fines). Under questioning by ; Federal Judge John J. Sirica, with the ; jury out of earshot, they claimed only that Hunt and Barker had convinced them that the Watergate caper was somehow related to the fight against Communism and Castroism, This, osten- sibly, was enough to. appeal to the anti-Castro sentiments of the defendants; two of them, Martinez and Sturgis, had :been involved along with Hunt and Barker in the CIA-directed Bay of Pigs operation. But who had, financed the es- capade? Barker maintained that expense :money .was mailed to him in unmarked envelopes, and he therefore didn't know the source. "Well, I'm sorry," said the frustrated judge, "I don't believe you." The four also denied receiving any outside support after their arrests, or promises of help in return for pleading guilty?but NEWSWEEK learned other- wise. Several reliable Washington sourc- es said that the defendants were reCeiv- .ing at least part of their current .funds from Republican moneymen eager to minimize the GOP's embarrassment. "As , I understand it," one insider told NEWS- WEEK'S Nicholas Horrock, "the kitty did ? not reflect approval of their acts, but , simply a desire to do what they could to relieve the party of the embarrassment of a long and messy trial." . ! Pensions: I3eyond that, Horrock learned that five of the seven defendants Duress: In court, attorneys for the two remaining defendants?McCord and ; G. Gordon Liddy, a former FBI man and White House staffer?called for a mis- trial. The jury, they argued, could not ! remain unprejudiced after the unex- plained disappearance of so many de- fendants. But Judge Sirica turned them ,down and then attorney Gerald Alch ' 1disclosed that he planned to defer4 McCord with the principle of "duress" ?i a chancy strategy based on McCord's I supposed fear that pro-McGovern leftists I were planning violence against top Re-' pyblicans "including but pot limited to. ., the President." Said Alch: "If one is un- I der a reasonable apprehension?regard- ! less of whether that apprehension is in ! fact correct?he is justified in breaking a law to avoid the greater harm." Legal experts scoffed, noting that du- ress is usually accepted as a defense only ; in extreme emergencies. Even if there ; were a plot, attorneys said, McCord ! could easily have turned the matter over to the authorities. Alch's defense was "aimed strictly at the emotions of the jurors," said One former Justice Depart- . ment attorney. "If he can get to one of ; them who's deathly afraid of rioting left- ! ists, he might get a hung jury." The jury was permitted to hear bare- ly half of the proceedings. Jurors did ' hear a young plain-clothes man describe :the arrests inside Watergate ("ICeep.cool ?you got us," said Sturgis, hands in the air). But they trooped out of court again as lawyers bickered over the testimony ? of former FBI man Alfred C. Baldwin, who admitted listening in on some 200 Democratic telephone conversations. The government wanted Baldwin to describe the contents of the calls in order to sup- port a possible blackmail motive. But - some of the wiretapped Democrats ob- jected that their privacy was being in- vaded, and the U.S. Court of Appeals finally ruled out the testimony. When the trial resumed, Baldwin testified that ? he once took his logs on two days of! i tapped phone calls to CRP headquar- ters and left them with! a guard?for de- livery to a CRP official -whose name 'also receive money from the CIA, .1 Baldwin swore he cannot remember. though for past services unconnected r 13y the weekend, the chances that the with Watergate. Hunt and James 11..1e- i 'trial would produce complete explana- Cord, who was security coordinator for lions were shrinking fast?and some Sen., the CRP and a security consultant for' ate Democrats moved closer to a full- ;the COP National Committee when he, scale inquiry of their own. They got! was arrested inside Democratic head; some perhaps unexpected support quarters, both receive pensions as re- tired CIA employees; _Barker, Sturgis from the Nixon Administration itself, f when Attorney General Richard Approved For Release 2001/08/07 : Fe-RDP77-00432R000100070001-9 ????-- 7.-7,77,T7-7r-rn.0777-rrr,r7..7,1771,!'7197"Iirl,j`29"77.7r/7 irf7117 1,77, r. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 WASHINGTON POST 27 JANUARY 1973, Watergate Mistrial Denied- By Lawrence Meyer Washington Post Siliry andaaffWrlt r illegal wiretaPpint Chief US' District litid" eavesdropping stemining 'from the June 17 break-in a !the Democratic National Com' anittee's Watergate hetuiqua ters. Former. White House mil sultant E. Howard Hunt and four other men pleaded 'guilty in the trial that ended its third, week yesterday.' Sloan's testimony Wedne8- day while the jury was out dif fered from his testimony be, lore the jury in several key' Kleindienst promised to make all FBI records in the case available to ? 'I them. "A jury trial," Kleindienst con- ? rededi ns: not the best place to ex- plore the ramifications of this. kind ;of thing for the political system." ? ? ,WASHINGTON, POST .27 JANUARY 1973 CC;ininittee Fined $8,000 By Timothy Washington Pos The Finance Committee tot Ile-Elect the President pleaded' Ito contest yesterday in 'US.' bistriet Court to eight viola- tions of the elections financing law, and Was fined $8,000. !' It was the first time that a campaign committee had been found guilty since mailing of financial reports first ? be- tflme an offense under the Corrupt Practices Act df 1925.. By entering a plea yeSter-? day, the finance committee avoided having to account for how it Spent the unreported money or to respond to ? any evidence presented by the Justice Department. "I've never seen the differ- once between a nolo conten- dere (no contest) plea and a guilty plea," said U.S. District Judge George L. Hart Jr., in fining the committee the maxi- mum of $1,000 on each count. No individuals were charged In the complaint, so a possible onc-year jail term was not ap- plicable. - The charges were the first hi be brought under the Fed- eral Elections Campaign Act, which took effect April 7, 1972, and cited cash financial pay- ments through the committee's treasurer, Hugh? W.. Sloan , Jr., to its legal adviser, G. Gordon Liddy. . Liddy is a defendant hi the ;Watergate, trial. Testimony has indicated that he received more than $232,000 from the commtttee for various assign- ments. The complaint charged spe- cifically that Sloan gave $12, 000 to Liddy on two different occasions In May and June, 1973, without obtaining re- ceipts or keeping required rec- ords on the purposes for which the money was spent. Also listed in the complaint Is $5,300 given to Liddy after May 10 by Herbert L. Porter, scheduling director of the committee. Porter has testi- fled In the Watergate trial that he gave Liddy a total of $85,000. , rfObitISOTI Staff Writer , . Another account also-a-Cc-Use's' Liddy' with ?failing to 'report: spending An. additional $2;000. Wheti the' Justice' .beparV Ment , filed 'the -criminal ? torn'. plaints two. weeks 'ago, 'a fin- ance committee spokesman Said ,that the complaints v "ak legedly refers to technical,' and' unintentional 'failures to' 'corn-' ply ,with -Certain sections of a toniplex new law., It" is the policy of this,, cointratee to fully cOniply with all election laws. We have always sOught to do so." ? The Justice Department cam plaints, known technically' , as criminal informations, grew out of a General Accounting Office report in August that charged the committee with 11 apparent or possible violations of the Federal Election Cam- paign Act. At the time of that report, Maurice Stens, finance corn, ,mittee chairman, denounced. It as "incomplete and inaccu- rate" and said it "reaches false and unwarranted conclu- sions.' "We are gravely concerned that this report, with its sug- gestively reached conclusions, has impugned the Integrity: and good 'name of several in, dividuais who have not, itif our opinion and in the opin- ion of legal counsel, violated' any provision of the ? law,"; Stens added at the time. -; Attorney Kenneth Parkin- son for the eommittee would not comment further on the no contest plea yesterday, Government attorneys indk cated they were surprised by the plea. , Judge Hart, asked what al- ternatives were open to him at the time of the plea, said he could only accept or reject it,/ and that the maximum fine he imposed couldn't' have beohl More at the end of a lengthy',1 trial.? .) "The court is not an: inves-, tigative ageney," Hart Said. Olohn J.:Sirlea, despite., objec- tion from both prosecution and defense attorneys in the yVatergate bugging trial, mail tO the jury yesterday portions testimony he had prevl- tiusly heard with the jury not Iresent. ? ; Silica explained before reading the testimorip-:-given by the former treasurer of the Nixon re-election committee, Hugh W. Sloan Jr., that' he ,Was. doing it to help the jury 'decide whether Sloan was tell- trig the truth. Sloan's questioning by Sir- .1ca on Wednesday represented 'the Second time the judge had ?intervened in the examination !of a witness. Sirica has as- respects: , ? Sloan, gave a different tte`,; lount of what Liddy had said. to him only hours after metro-, ,pblitan police had .arrested, five men, including McCord), 'inside the Watergate. , ? Since pressed Sloan to ex, plai4 how $199,009 could haVe, 'beeti. given to Liddy without' Iderted- his right to question '? ? ? iiny ? apparent, accounting. t4 witnesses when he says he be- ? 'Sloan -as to how the mune neves ."all the facts have not ' was being used. been developed by . either- Sloan told Silica he hfl. side." quit the re-election committee,, 's Before and: after he read because of the, Watergate inel"i Sloan's testimony to the jury, dent. ? ! Silbert told Shin yesterday' Shin clashed with Peter Mar- ? , before the jury was brought ire oulls, attorney for defendant , that "there was nothing in Ml G.' Gordon Liddy.. Maroulis !naked Sirica to declare a 'Sloan's testimony' that/ was ai trial on, the .grounds that the surprise to us or that We didi ijudge's Feeding of Sloan's tea- : net know." But Silica's exam.; illation 'of Sloan went beyond: timony would give it undue ! the point where' Silbert Indk ? weight in jurors' minds. ' ? .; eated Wednesday that he hien: Sirica denied the motion, 'self wanted to end his qua- tacitly conceding that he was ' giving the defense grounds to -honing of . Sloan. . ? ? -a argue for reversal on Maroulls did not cross-exam.: Inc if Inc Sloan, explaining terday that he decided', yes- ;Liddy is convicted. "I exercise ? ,my judgment as a federal - !judge and as the chief judge against doing so to avoid of this court," Sirica said. "As reinforcing Sloan's testimony long as I'm a federal judge I'll in the Jurors' minds. ontintie to do it. I could care , In the jury's presence o?! less what happens to this case Wednesday, Sloan said he had on appeal, I'll 'continue to do seen and briefly spoken to 'what I think is right at the Liddy the morning,of June it ;moment. in the committee's offices. "11 ; ran into him in the hall just, ,"Your client is smiling," Sir-i 'Ica said, referring to Liddy' outside of his office," Sloan "He's probably not impressed recalled. "He was obviously a hurry.. . He said to', .by what I'm doing either. I lon't care what he thinks. et- the .best of my recollection, 'My boys got caught last flight. ther." , ? , I made a mistake. I used some., ' Earl J. Silbert, principal Iasi. body from here, which I said' ,sistant U.S. attorney and chief I'd never do. I'm afraid I ant , prosecutor in the trial, told going to lose my job.'" .Sirica he would rather recalL When Since questioned Sloan, he gave this account:. "To the best of my. recollee- tion," Sloan said, "what he (Lidd)) indicated was: 'My boys Were caught last night. I made a mistake by using, somebody froni here which told them I would never do," I'm afraid, I'm going to lose 'Sloan and let the jury hear it "from the lips of .Mr. Sloan rectly." ? ? "No," Silica replied, "Mn; ?:Sioan might have a lapse of memory." Sides then called the jury' In and read to it the testimony, it he elicited from Sloan Wed- ? escI ay w ethe jury was not present. Sloan had testified about approximately $199,000 in re-election committee cam.paign funds he had turned over to Liddy. Liddy is standing trial along with James W. McCord Jr., an. tother former official of the ommIttee for the Ile elect ion of the President are 30 ;Charged with cOnapirt! but, my Jo., Sloan was not asked whether he knew who Liddy meant by "them." Sloan is known to have given this same account of the conversation with Liddy during earlier interviews with federal investigators. Sirica also drew from Sloah 'testimony that he had venue. ;With finance chairman Maurice ,Stns and campaign chairman ilohn N. Mitchell that deputy, Approved For Release 2001/08/07 : CIA-RDP77-00412R000100070001-9 ' r ..;??? ' .'1..i.FIF-1,771.7 1,?;;'? 77,,lf:17.7.771,779777, ; - Approved For Release 2001/08/07: CIA-RDP77-00432R000100076001-9 taMpaigri director .Teh Stitart Magruder had authority to dis- burse. to: Liddy Committee funds that eventtfally .totaled $199,000. . Sloan had testified ? before the jury that he had turned over $199,000 to Liddy. "What was the purpose of turning $199,000 over tO Liddy?" Shin asked out of the jury's, pres- ence., ? . , "T have no idea," Sloan re Plied. ' , Sinks: You have no idea? Sloan: No, sir. ? Sirica: You can't give ns any Information at ?all? Sloan:. No, sir. I was merely ,authorized to do so. I was not told the purpose. ? Shim Who authorized you to: Wm: the $199,000' over. to Mr. Liddy in 'cash? Sloan: Job, Magruder. . ,. Sinks: For, what purpose? Sloan: I have no idea. Sinn said he did not ques- tion 'Magruder about the pur- pose of the expenditures. "t verified with Mr. Stens and WASHINGTON POST - 28 JANUARY 1973 -1VIr. Mitchell 'that he (Mag- ruder) was authorized to make those," Sloan said. "You verified it with who?',' Sirica asked. "Secretary (former Secretary of Commerce): Stens, the fi- nance chairman, and I didn't directly but he verified it with John Mitchell, the cam- paign chairman," Sloan said.. Silica: This $199,000 could be turned over to Mr. Liddy is what you ore saying?' Sloan: Not the specific, amount, but Mr. Magruder, his authorization was'authoriz-4 anon enough to turn over the sums in question. Sirica: Did anybody indie: ate to you by their action or? by words or deed what thia Money was to be Used for?' Sloan: No, sir. Shies also asked Sloan question that had not been asked by Silbert in question- ing Sloan, Magruder or com- mittee scheduling director Herbert L. Porter, who testi., fled he gave Sloan about en. Ervin May iiuiz '0,o00:: Sirica: You don't know what Mr. Liddy used it (the money) for? , Sloan: No, sir. I Sirlea: No idea? f' Sloan: No sir. ? Sirica: He was never qttes- itioned by you or anybody else What he did with the $199,000? ? Sloan: No, sir. Silbert told the jury in his Opening statement that of the approximately $235,000 given 40 Liddy by the re-election ,committee, the prosecution 'can account for only $50,000. 4 Before Shies read Sloan's testimony to the jury, Silbert told the judge that the "in- tensive" investigation that led to the Watergath indictment found that "Sloan Mid no pos- sible remote connection, di- rect or indirect," with the ,Watergate incident. Assistant U.S. -Attorney Seymour Glanzer pointed out 40 Sirica that Sloan had been Interviewed by the FBI and had testified before the grand By Bob Woodward and Carl Bernstein Washington Post Staff Writers' ? ? " ' ,f ?' Sen. Sant J. Ervin (D-NC.) itrapoena sonie of President Nixon's: top aides in the forthcoming Senate) Investigation into the Watergate bug king and an allegedly broader' calm', neigh' of political espionage and sabo-t tage against the Democrats, according` to informed sources on Carat& Hill. ? Ervin also intends to investigate the, 'government's inquiry into the Water,. -gate incident and related matters to determine IC it was complete. and im- -partial, the sources said. , It is known that this Includes a de- tailed review of the manner In' which' the government's ,cttse has been pre-', 'Scented. Sources said that daily tran- scripts of the Watergate trial are being .Scrutinized by Ervin staff members. Ervin, who will heed the Senate's' ? ? investigation, is expected to be granted; 'Subpoena power An call anyone in the' executive branch :of the government -.other -than the -President himself, the Sources reported. It 'could not be learned which presi- dential aides might. he called to testify. .However, it is known that Ervin be- lieves' that- any, White House officials and presidential advisers who have been named ha news accounts of ni-? leged spying and disruption against the Democrats should be given ti Chance to have their names cleared. If such aides do not testify voltinter-? 'Hy, the satires said. Ervin feels it is 'essential to force their testimony. ?Members of Ervin's staff are'drafting' %.ti resolution that, if mused by the Sett- ate, would grant him the broadest, :Subpoena powers. Ervin is virtually 'assured of reedy- Senate approval Of the resolutton;. 'the sources said, because the praverfut Senate Democratic Policy Committee, the 14-me tither arm. of. the 57-tnembe ? Approved For Senate Democratic majority, has pro- mised its full backing, "A ; Senate Majority Leader Mike Mans-i field (D-Mont.) has said that the Water-i gate probe and accompanying 'publie"! hearings may result in the first actual, test of I congressional power to force! testimony from the President's closest: assistants, should they claim executive': privilege. Presidential advisers from many ad'q ministrations and both political partiekl have asserted at times that they, have an executive privilege to not disclose to Congress confidential White llottse;, business. It is this tradaition that the: Senate Democratic majority inta 164 'cheated it wants to challenge. Ott Jan. 16, Mansfield sent eight letters asking, various' 'government agencies to pre-' Serve all records that might be revelant to the Erwin investigation. the letters went to the White House, the Justice Department, the FBI, the General Accounting Office, the Republican Nation- al Committee, the Committee for the Re-election Of the President, the President's cam- paign finance committee and 'Assistant U.S.. Attorney Earl J, Silbert, the chief prosecutor in the Watergate trial. The letters Said that The, Senate probe would deal with "the'allegations 'of illegal or Improper activities during, the recently convicted na-, lional elections," and would include four areas 'of inquiry:, "The break-In at the Demo-, erotic Nanette' Committee headquarters in the' Watergate"; "the reports of political Sabotage and espionage"; "the receipt find. account ofcampain funds"; raid "the' practices 'and Proce- dures 'of tho 'varitiut agencies : ijtiry, Sitiett to-J*01111 The grand jury minutes, Glahl ter -said, "Every conceivablS1 aspect of this case was gene; Into." "I'm . only concerned with the , testimony in the eottrti loons" Sinks replied. PI don't: think it's up to me to be- eons eerned with what goes on' in: 'the , grand jury. I'm not -.In- terested in that." Included to what Sirici :read to the jury was a cotif-, 'erence held by prosecution an defense lawyers at the bench,. Liddy's lawyer, Maroulis, arguing for a mistrial, said Sirica's revelation' of what watt Said during the bench confer - fence made him wary of dis- cussing points at the bench? ,"for fear they will latet....be ,reacrto the jury" Shies again denied 1k/terabit.; is' motion for a mistrial, Qtrat4 lug another federal judge', Sir- tea ?'Said, "Any federal .rtidgi tvho. Makes a decision With ode eye on what the Court of Ai.; peals might do ought to go* 0 off the bench." ? WCOP'11 11 and officials in their investiga- Hon of such ectivitieS," One ? sorace close to Ervin said that the last area of in- qttiry meant that "we are go-, lag to investigate the investi- 'gators" to determine If there was any political influence, brought to bear on the con, duct of the investigation by the F131 and Justice Depart- metal Attorney General rtiehard Kleiyndienst has said the Watergate investigation by the Justice Department and FBI' was the most thorough and ex.' haustive since the probe into the assassination of President; Kennedy in 1963. ? Sources close to Ervin said; the 76-year-old senator,A rela- tively nonpartisan formei state supreme court ? judge wants the Watergate incident investigated by a special- ad hoe committee of the. Senate Instead of by one of the regu- lar Senate committees. Ervin is chairmen of . the Government Operationa Com- mittee and the Judiciary Sub- committee on Constitutional Rights and is known as the 'Senate's outstanding authority on constitutional law. ? The right of privacy is one Of his strongest convictions. Last year, Ervin denounced the delay of the Watergate trial until after the November elections. Ervin has said that his Watergate probe will not, be- gin wail completion of the bugging trial in U.S. District 'Court here, which ended its third week yesterday. He said he is looking for an attorney of nonpartisan -background th head -the investigative staff hitt has but yo chosen one." ? said that he has nd Release 2001/08/07 : CIA-Ru,-',7-004'3 6160100070001 9 7.7771 ii, r' Approved For Release 2001/08/07: CIA-RDP77-00432R000100070001-9 Ned- irate f811 ','ettblic hear: ihgs, but that they would be held some time this year. The staff or' the Senate Sub- el:initiated on Administrative Practice and , Procedure, Chaired by Sen? .Edward , M. Kennedy (D-Mass.), has been investigating the:. Watergate. Incident and, 'related matters ifinee Oct.,12.,Kennedy has e*, pressed reluctance 10 head the full-scale Senate investigation. arid recently agreed with !Mensfteld ? thet, ,an, , iequiey, NEW YORK TIMES 29 January 1973 rosec11,11011 Ths In Watergate Trial ? By WALTER RUGABER tead del ISY ti.Vft '.votild he le 44! Vulnerable to attack on polite' cal grounds. The inforenlition' developed by Kennedy's staff., which has been subpoenaing records for three months, will be: made available? ?to? Ervin Senate sources. said. ' Much of the information obi tamed by Kennedy's staff, aei cording to reliable., sOurees1 deals .with the qUestioriv! et .Whtte House involvement ht the wider political espionage; (sabotage operation as reported in news accounts. r Special to The New York Times : WASHINGTON Jan, and the United States Attorney. Demands for the appointment , of a special prosecutor in the ' Watergate ease began a week after five men were caught in pemocrotic headquarters on June' 17. , ' r Some of the demands were , overtly political; others , ap- peared nonpartisan. But al-, .ways there was the question of how vigorously the Depart-' Ment of Justice, would pursue ' a 'case in which several Presi- dential aides were involved! and in which others?perhaps , of higher rank?might be lin- plicated. . ! That question has come up again, implicitly but forcefully, as the trial of two remaining defendants charged with con- spiracy, burglary and eaves- dropping moves toward a , !.climax in the United States District Court here. ,Doubts Intensified. Whateter doubts may remain in the public mind seem to have been intensified particu- larly by the actions of Judge John J. Sirica,, who has pre- sided over. the three weeks Of, the trial. Judge Sirica has said on a number of occasions?most re- 'cently on Friday?that he does not mean to "'haply anything" ot to rebuke either the Gov- ernment, or the defense for its handling Of the case. But he has also shown dis- satisfaction 'with the ?questions asked by the prosecution and, to a lesser extent, the defense, and he has examined witness - us himself. His tone with them Mei often been incredulous. , The lawyers arc most inter- ested in a precisely drawn, eight-count indictment, which seven men were accused of committing specific violations of the law during a limited period of time. ' 'There Are Limits' , "This isn't the Warren Com- mission," said an attorney who Is familiar with the Watergate 'case but not directly inovoived In it. "When you get to the trial, there are limits to where you can go." , The scope was to a large extent settled, the attorney and Other sources said, by the Fed- eral Bureau of Investigation diningt.he grand jury inquiry, 'that produced the current in- dictinents on Sept. 15. . The difficulty in assessing the secret grand jury decision. on how far the conspiracy lwen and who should be dieted was demonstrated vivid- ly on Friday when Judge Snide raised as an issue the, credi- bility of a major Government. witness, Hugh W. Sloan Jr. Mr. Sloan had resigned as treasurer of the Fit/Ince Com- mittee to Re-elect the Pre& dent after handing G. Gordon Liddy, a former committee of- ficial who is now a defendant,, $199,000 in campaign funds. , Judge Sifica questioned Mr. !Sloan with the jury not pres, ent and appeared skeptical' about some of the answers; which included a statement that he had "no idea" what had been done with the $199,1 000. The Government , asserted that Mr. Sloan had had noth- ing to do with the. Watergate affair, and Seymour Glanzer, one .of the prosecutors, invited the judge to examine the F.B.I.. reports and the grand jury. transcripts. ' But Judge Sirica said he would concern himself ,only with "the lestimoey in this courtroom." The testimony he .'has been hearing deals almost exclusively with the narrow in- dictment and not with the wider questions in the case, such as whether the break-in at the Watergate office building was part of a wider espionage effort and whether anyone beyond those indicted knew about. or profited from the spying. Magruder Questioned Jeb Stuart Magruder,. who served as deputy director of the Committee for the Re-elec- tion of the President, was ques-' tioned by the Government about various intelligence as he had given to Mr. Liddy. The "major" assignments, Mr. Magruder said, involved learn- ing the plans of ? potentially! troublesome demonstrators both at campaign appearances around the country and at the Reptile- Wan National Convention. 3 Mr. 'Magruder,. under exani.i Maim by Earl J. Silbert, the. *princiPal assiStalit ;yet gave tO Mr. LiddY? A. yee; States Attorney, said that some did. $250,000 had been budgeted for Mr. Liddy's work.- The tes- = Q. What kind of 'record did timony included the following book"maintain? A. It was a cash exQchanngide: you' ,give him anyl itransactions. reflecting in and out other investigative Now did you ever mike A. Yes, as / recall, I gave' disbursements? A. Yes, I did. final summary of your cash snents? ' him a number of others. Q. And to whom did you deliver 'it? A. [Former] Secre- Q. Can you give an example? , A. An example would be, Miry [of Commerce Maurice H.] t there was a candidate for the! Democratic nomination who, Was known for his antipollu- tion -stand, end there were also news reports about some of his suppOrters, financial supporters particularly, one lit particular being a major poi+, luter, and I asked Mr. Lidd as an example to see if there Was any more to it than Voi read in the newsPapers. ? q. Mr. Margruder, on theaa, assignments that you gave Mr. Liddy, did he ever make re-' Ports to you? 4? A. Yes. Q, What was the form? A. Primarily verbal reports. Mr. Silbert then broke off this line of questioning. There Was nb testimony about the 'candidate's identity (presum- ably the reference was to Sena- tor Edmund S. ,Muskie), ,or about exactly what Mr. Magruder had wanted and re- ceived, or about what he had done "With the information. Ties Not Developed When Mr: Steen came under direct eXamination by Mr. Sil- bert, the cash transactions be- tween the Nixon cmmittee and Mr. Liddy undeveloped, for ex- ample: Q. What was the procedure you followed in' giving Mr. Liddy this amount of cash ($199,000)? , A. He would indicate to me he needed X number of dollars and come to my office to re- quest it, and I would provide it to him. The prosecutor then tulited 'to the question of how the Money had been "paged Later, howeVer, there was this exthattge: Q. Did you maintain any !records of disbursements that 1 _a ns. . Q. Did you retain any copiest A. No, sir. Q. What did you do with the cash book after you had de' Iteered the final summary? A. Since the summary before es,. sentially contained the neces, sary information that was re - fleeted in this book, I destro the. back-up book. , Mr. Stens, who served as IVIt' Nixon's chief fund-raiser due., tog the campaign, has not been., subpoenaed as a witness at the trial, It is understood that/ he was i permitted to give grand jury' testimony in the form of a written statement. Judge Sirica, Who was SP, ;tinted to the bench by Presit dent Dwight D. Eisenhower, 0x.d tracted from Mr. Sloan the liti, formation. that the payments 'td ! Mr. Liddy had been approved,' by Mr. Stans and through Mt,' Sums by John N. Mitchell, thej former Attorney General Whtf! ., . for .a time was 'Mr,? Nixon' ! . campaign manager. ? . $ . ; ? .. A Case of Needling ! The judge's examination' It- duded the following: t , Q. Did anybody indicate' to; You by their action or by wotds Or deed what this money. wee: 'to be used for? A. No, sir. Q. You are a college gradu4 ete, aren't you? ? , The Government did not nee.' dle its own witnesses this way; and sometimes the tactical reit!! Sons for its failure to pursue potentially useful point seemed* to be apparent. For example, Alfred C. Bald-, Win 3d, a key witness who said he had monitored a wiretap on a Democratic telephone, testi- iled that he had delivered roavesdropping information Mt neoccasion to the re-electlori committee. . NEWS & itQRLD OPORT '20 JAN 1973 . Washin ton Whispers? Too Many Cooks in the CIA? ? Approved For Release 2001/08/07 : CIA-RD ? ? Now expected is a thorough shake-up of the Central Intelligence Agency. Intelligence sources say the President particularly wants to sharpen the handling of the CIA's analyses of for- eign affairs and international econom. ics. One complaint is. that under exist- ing procedure some of the agency's excellent reports are muddled by the time altthe experts get:their views in. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 TIME 2g JAN 1973 TRIALS The Spy in the Cold "Well, I'm sorry but I don't believe! you," said Federal Judge John J. Sirica.1 He was addressing four of the Water- ! gate defendants, and what he did not be- lieve was their claim that they could not remember who had supplied them , ,with money. Even sums as high as $114,000.. they said, simply turned up un brown manila envelopes from none knew where. Despite the judge's sharp questioning. the four insisted last week i on pleading ignorance?and guilt. That ! reduced the number of defendants from I seven to two and also reduced the like- lihood that the trial would ever disclose; who sanctioned the conspiracy to bug Democratic Party headquarters last1. June. The four?three of whom are Cu-! bans from Miami?were talked into1 pleading guilty, TIME has learned, by. the same man who recruited them into the conspiracy in the first place: E. . Howard Hunt, the former CIA officiali who had pleaded guilty himself a week' earlier. Hunt promised his four confcd-i crates that unidentified "friends" would' offer each defendant up to $1,000 for every month he spent in prison, with more money to be,paid at the time of t his release (TIME, Jan. 22). The guilty plea by the fotir defen- dants staved off a prospective court-1 room uproar?testimony that Hunt had told them the Watergate bugging had been approved by the White House. spe- ? cifically by two presidential advisers ?former Attorney General John Mitchell, then head of the Committee1 ? for the Re-Election of the President. and Charles W. Colson. who at the time was. on the White House staff as spe- cial counsel to the President. Castro. Hunt's influence over the ? four dates back to 1961, when Hunt ; was !a leading CIA official engaged in . planning the Bay of Pigs invasion of . Cuba. At that time, the four men were convinced that Hunt spoke secretly for I the U.S. Government; apparently .they still are. In 1972, when Hunt recruit- cd them into the Watergate conspiracy, 1 he grandly told them: "It's got to be done. My friend Colson wants it. Mitch-.? ell wants it." Colson is in fact an old ! friend of Hunt's; it was he who got Hunt onto the White House staff in 1971 as .a $100-a-day consultant. Hunt also told the four that their old enemy , Fidel Castro was sending money in- ;. ,!directly to the Democratic Party in ! ? the hope that a McGovern victory !would soften the U.S.. attitude toward ;Cuba. After the Watergate arrests, Hunt , became more cautious, referring to Ad- ministration officials merely as "my , ; people." lie insisted that his people . were prepared to put tip plenty of mon- ey for the defense of the arrested men. Of the $35,000 Hunt is known to have received from his people, however, only ! about $8,000?or $2,000 apiece?has !reached the four defendants. Vet the: four men do not appear to be displeased; 1with the arrangement. To have worked, with Hunt. one of them told the .court, had been "the greatest honor." ? "Under the spreading chestnut tree. Approved For Release 2001/08/07 : C3rRDP77-00432R000100070001-9 hold you and you sold me." In an inter-- view with TIME Correspondent David Beckwith, E. Howard Hunt quoted those mocking lines from George Or- well's 1984, and then he added defen- sively: "There was none of that in any .operation I ever ran. Nobody above or - below me was ever sold out. I protect the people I deal with." ! Hunt, a remarkable storyteller (who. .has written some 46 novels as well as an account of the Bay of Pigs fiasco ' ?called Give Us This Day), decided to :talk because "I've been taking a real beating in the press. I've been portrayed as an irresponsible adventurer, a des- perado. And bring a photographer. The !pictures of me at the trial have made me look like a buffoon." For legal rea- sons, he refused to say much about the , Watergate trial, but he reminisced free- ly other adventures. "Let me tell you a story," Hunt de- 'dared. "The last wartime operation I was involved in was an air resupply op- eration in central China. We had a five- man guerrilla team that hadn't been re-, ;supplied for months', so we went I parachuting supplies out of a C-47 to !them in a rice paddy. I went along as a !cargo kicker, holding onto the chute ; wire and pushing the stuff out in a hur- ry from about 600 feet. Two of us were hit in the face by flak on the way back, and one later got caught by the Japs and skinned alive, but the point is this: A team out on an unorthodox mission expects resupply, it expects concern and attention. The team should never get I ? the feeling they're abandoned. End of i! Istory." . Hunt M . . makes no effort to hide his I 1 own sense of abandonment. "Nobody has invited me anywhere for six months," he says. "My family has been harassed, my kids are teased and taunt- ed at school. Most of my old CIA friends, ; people I worked with for years and ? thought I was close to, have cut me' off. I had lunch last week with my daugh- ter at a club in Georgetown and saw a , CIA officer who worked for me in Ja- pan. He looked right through me." Secure. Speaking of the death of his wife In a Chicago plane crash last: ' month, Hunt insists that the mysterious ; $10,000 she was carrying in $100 bills' was to have-been invested "in a newt business enterprise Out there, a concern ? that might have provided me With a job after I got out of jail." Turning a bit maudlin, he remarks: "I've often wished that it had been me .on the plane in-' ' stead of my wife. The Watergate would have been over for me. My family ' would have been financially secure. And i; the four children would have a mother !-? ? instead of a father wasting away in jail." ! At another point, as he spoke of trying to explain his situation to his nine-year- old son, he wept. Still later he referred to himself as "a fish at the erid of a line; I'm struggling hard, but it looks like a pretty strong line." Hunt joined the CIA in 1950 after having served in the Navy and the OSS !during World War II, worked as a LIFE 'correspondent in the South Pacific, won ! .a Guggenheim fellowShip in creative ! 'writing and sold a movie script (Bimini Run) to Warner. Bros. for $35.000. He is proud of his 20 years in the CIA,.: though he feels "the agency" has. treat- , ed him badly of late. "When they iden- tified me as a former CIA officer right after the Watergate arrests," he says, ' "they abrogated our agreement of ? confidentiality." As a member of the agency's "De- . partment of Dirty Tricks," he worked on. the operation that overthrew the Communist-supported Guatemala re- gime of Jacobo Arbenz in 1954. After the coup, he recalls, "Arbenz and his ? people were stripped naked at the air-.. port and searched before they were al- lowed to leave. One of his aides was Che Guevara. If we'd let our Guatemalans! start to shoot them, as they wanted, ' there's no telling when the shooting ; would have stopped. It was a close de- ; cision, and I have often wondered how effective Castro would have been with- ! out the intelligence of that asthmatic lit- ! tle medical student from Argentina." On his years in espionage, Hunt re- Elects: "You sees our Government trains people like myself to do these things ? and do them successfully. It becomes a way of life for a person like me." Of- ! ten he traveled under assumed names, says Hunt, "to preserve plausible deni- al," the phrase rolling from his lips so ; smoothly that it sounds like an agency cliche. Again and again he returns to ! the theme of an officer's loyalty to his subordinates: "If your people are caught in an operation, you do every- thing you can for them. Money is the .cheapest commodity you've got in an !. operation like this." Hunt retired from the agency in 1970. "The Bay. of Pigs," he says bit- ! terly, "really ended my chance for sub- stantial advancement within the CIA, be cause I was associated with it and the ,? thing went sour." In 1971 he was asked, to join the White House to plug secu- rity leaks. "It wasn't a petty operation. ? There were major leaks involving the - SALT talks, operations in India. One leak resulted in the extermination of one of . ? our agents in Asia. The Administration , ? , couldn't stand for that, and I worked ? ? closely with the CIA trying to stop it." Why did he get mixed up in the Wa- tergate ease? Hunt admits that he had ; !a political motive. which Ile dresses up ' rather elaborately. "There is a built-in bias by the intellectual community, in- eluding the news media, against people who want to preserve the best of our . country's heritage. As for me, I dont Want to exchange the good of this coun- . ! try for the uncertainties of change." Hunt also has a more practical expla- ', nation for his involvement: "I was not - ; aware that my activity constituted a fed- eral offense. I never personally went into Democratic offices, and I thought !' the most they could get mc on was sec- ? ond-degree burglary.' ; Hunt insists that he never thought ' ! much or the Watergate scheme in the -(!'? ? first place. "1 cased the situation thor- oughly, and I'm good at it. I appraised ; the risk lin bugging Democratic head- ! ! quarters) as very high and the potential ' return as very low. I recommended ; against it. but it wasn't my decision: I 1. can tell you this: if it had been a CIA op- trillion and I'd been in charge, It new would have happened," ? ??('.1 ,-F7;11,71-777,1'7,77,7, 7,177'1:41;1 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 tIEW YORK TIMES 30 January 1973 Alleged G.O.P. Spy Avoids Full Inquiry By SEYMOUR M. HERSH. , ? spient to The New York Vine* 1 WASHINGTON, Jan. 9--The Federal Bureau of Investigation has made no attempt to investi- gate fully. the ? political espio- nage"and sabotage. activities al- legedly conducted last year by bohald H Segretti, a California lawyer, who reportedly acted under the direction of the White Reuse ahd. Republican re-elec- tion' officials.. ' e The .disclosure came as loth sides rested, today in the trial of the two remaining defend- ants in the Watergate .case. Well . placed Administration sources italic, said that "Justice Department-, officials learned of some of Mr. Segretti's activities within weeks after. the Water- gate arrests last June :17,ebu decided on the basis of, pre ilininary 'interviews, with Mr. Segretti that his activities were legal and therefore beyond the scope of an extensive F.B.I. in- quiry: ? e That decisioreWas reaffirmed last October, the sburce said, after newspaper accounts indi- cated the full ?scope of Mr. Segretti's activities, which were said to have involved sabotage 'Attempts ? against Democratic tandidates during the primary election campaigns. It was further ? learned that -Mr. Segretti began his opera- tions, Apparently on behalf of Some White House officials, as early as September, 1971, at 'about the same time E. Howard Hunt, then a White Rouse con- sultant, reportedly began organ- izing his political intelligence team. ? , ? Mr, limit's operation eventie I.ally' led- to the unsuccessful 'break-in at the Democratic 1National Committee offices in !the Watergate' office ceinplee here. ? e ? Mr. Segretti Is knewn to havd :met at. least twice with Mr. iHunt, in Florida and in Cali-. ;knee and he was once asked ? . to help arrange a fake demon- stiation during the Democratic National Convention. Sources said,, however, that the Justice Department had made no effort to determine the full extent of Mr, Segretti ne.tivities or to find out wile placed Mr., Segretti in commit with Mr, Runt. . White House officials' have! repeatedly said that they did' not , know either about Mr., "Segretti's espionage operation' Or the political intelligence ace, tivitles headed by 'Mr. Hunt and G. Gordon Liddy. a former totinsel to the Republican re- election committee. ? . However, Dwight L. Chapin, .President Nixon's appointments secretary, was reportedly asked? to leave his White House job after the November electiciff, 'apparently because he:: was named .last year as the White House contact for Mr. Segietti. Ronald L. Ziegler, the White House press secretary, silbse- quently confirmed that Mr. Chapin was leaving. Mr. Ziegler, denied that Mr. .Chapin was being fleeced out or that his decision had anything to do with the espionage controversy,' Before last October's news- paper reports about Mr. Se- gretti, three top Justice Depart= Ment officials publicly declared that every possible lead was being investigated in the Wa- tergate case. ? e ? In a news conference Oct. 5, the last one he held, Pres- ident Nixon depicted the F.B.I.' inquiry into the Watergate case as so thorough and come pieta that it made the 1948 Congressional investigation of Alger Hiss look "like a Sunday School picnic." ? "Let's look at what hap-' petted," the President said. "The F.B.I. has assigned 133 agents to this investigation. It followed out 1,800 leads. It conducted 1,500 interviews. I wanetd every lead carried out to the end because I wanted be sure that no member of the White House staff and no man, or woman in a position of, major responsibility had any- thing to do with this kind of reprehensible activity." But officials of the Justice Department and F.B.I. acknowl- edged in recent interviews that investigations early in the sum- mer and in the fall of Mr. Segretti's activities were cur- sory at best, and the two agencies blamed each other for the lack of action. "The cut-off came just when Segretti went underground; after the newspaper stories on him broke," one F.B.I. official said. He added that the decision to call off the inquiry had come from the Justice Department's Criminal Division. "That's a matter of legal judgment" with which the bureau did not officially quarrel, he said, "but I suspect that there was discontent at lower levels." Henry E. Petersen, chief of the Criminal division, refused to discuss the Justice Depart- ment's investigation in an in- terview, but one well-informed official categorically denied that the F.B.I. was "called off on anything," "The bureau called up and said, 'We're pot doing any- thing on Segretti," the Jus- tice Department official relat- ed, "and asked, 'Do you see anything in this?'?" - At this point, Mr. Petersen A Democrat who was named Assistant Attorney General last year, queried the Justice De- partment's Fraud Division, the official said, and also found no support for a full inquiry on Segretti. "He had no affirmative rec- ommendations from anybody on this," the Justice Depart- ment official said. "If he had, he:wouldn't have called It off." Attorney General Richard. G. Kleindienst, told' newsmen last Oct. 24 that no inquiry into the activitiet of Mr. Segretti was planned "because as of right now, Any evidence that has come to us would not-in- dicate the violation of a Fed- eral law." ? ' , In a series of interviews, a number of toast and present Justice Department officials argued that even without any immediate evidence of wrong- doing, the Government -had an 'obligation to investigate fully the activities of Mr. Segretti. One Justice Department law- er'noted that the department had' special 'procedures for cases involving organized 'crime figures or major political fig- ures. ? "You look at everything When you have a case like 'this," he said.' "It should be fully 'explored in all its ramifi- cations even though it may appear not to be a. criminal ,violation." e Other sources noted that the :published reports of Mr: Se- 'grettrs alleged operations de- scribed a number of ostensibly Illegal activities, including the forging of campaign letters and the promise of future political rewards in return for pre- election support. In addition, Mr. Segretti was said to have been paid with funds 'from a Republican fund totaling at least $350,000 that May have been collected in violation of campaign finance disclosure laws. Lawrence R. Young of subur- ban Los Angeles, one of Mr. Segretti's close friends, has told many newspapers that Mr. Se- great said that Republican offi- cials permitted hint to review his F.B.I. dossier. Shortly be- fore testifying before a Fed- eral grand jury about the Water- gate case. Mr. Young also quoted Mr. Segretti as having said that Presidential aides coached hint before his grand jury appearance. At least '19 long-distance calls were placed front Mr. Segretti's telephone to Mr. Hunt's between mid-March and June last year, and at least one such call was placed to the home of Mr. Chapin. Many other friends and for- inter associates of Mr. Segretti have been traced by newsmen, usually through long-distance telephone toll reports, and have publicly told of having been approached by the young law- yer and asked to participate ill a large-scale espionage and sabotage operations against the Democratic party. Administration officials have consistently discounted such reports as hearsay and unprov- able rumors. ' Mr. Kleindienst challenged reporters last year to "get the evidence to me that would in- dicate that a specific person has violated a special criminal law and my department will in- ;vestigate it. ? But in a series of interviews over the last two weeks, for- mer friends, and associates of Mr. Segretti said that they had Bet been contacted by the "rm inland, just abeolutely 'Oland thatsthey never celled ,me," said Mr. Young, "'a law- yer. "I was so sure they were coming I even had a -speech' Iprepared." ? -' ? . *. e : Among the things the bureau Would have learned, Mr. Young bald, was that Mr. Segretti ? had told him of a Miami meeting With Hunt in which Hunt "men- . hioned hiring Cuban refugees to lpose as McGovern support, and tear up the inside of eth Doral Hotel," the Miami Beath hotel to be used by Mr. Mee Govern as his Democratic cone erention headquarters. ? 1 1 WASHINGTON POST , 30 JANUARY 1973 Chapin Quit4 - , .: - - : q White houseA ,. i.' Drnie8 Firing 'k1i' , 1;:inshtitrlY' st' tijorriPoCstsntanttonwt:Itet: ..: ? ..29 ? The White 'Ilouse an : ltiler BISCAYNE; Fla.,eltin.,' Inouneed today that President; , NixOn's appointments. seercie i;tary, will be leaving the admit-' '?lstration, but denied that bil ?departure had anything to dd ;With political espionage active ,ities. . Presidential press. secretary iliwight Le Chapin, 32, would', fleonald L. Ziegler, said that ,be quitting the White Housee ,this spring to .aceept a "verye (flee business offer." Ziegler itaid that neither Presidential, 'Assistant II. R. Haldemeh ?tore .anyozie else in the administra-e Mon had requested Chapin, WI leave.4,1 1 "Dwight Chapin W ' as not',' etsked to leave the edministra-i ,tion, and any decision to leave;t Is his own," Ziegler said. ,I . The White House press see-e', , eetary branded es "incorrect :unfounded and untrue" a story') in The New Yerk Times which ?said that Chapin Was being' forced out because he hacl:', :been named in newspaper dls-j closures as the contact man' 'for Donald H. Segretti, a Cale; . fornie attorney who said hqi !played' a major role In Repub4 ,lican efforts to disrupt DeMO-, erotic ? primaries and engege in espionage ? whist Demtw :crate ptesidential candidatesil , On Oct. 15 The WeishingtOtt 4 Post reported that Chapin ace!3 ..,, ed as a "contact" in Washin. ,ge ton for Segretti's spying activ+, titles; according to federal: ,Sources and a sworn statemett by a California lawyer Who; ,was a friend of both Chapin, and Segretti. ? ? . ' In addition, the sources Sal ,?and numerous telephone . calls confirmed?that Segretth ' had regular contact with for mer 'White House consultant E. Howard ? Hunt Jr. Hunti ,pleaded guilty earlier thief.; 1month to all charges against!, him in the Watergate bugett4 ? .1 case.e mtiazine reporte? d?titidi ., the Washington poet 34 Approved Eor Reie'a'20ol1g8i07,..: -cl*Rf-1,14?,{04Z,T,41,),9rqurf,Prlt,-,gr-j 10-1 Approved For Release 2001/08/07 : CIA-RDP77-00432R0001000700-01-9 :finned?that Segretti was paid about $35,000 for his spying activities by Herbert W. Kalm- bach, President Nixon's per- sonal attorney In California. . Time magazine also later reported that Chapin had ac- knowledged he hired Segretti. It is known that Chapin told ..the FBI that, he never asked Segretti ), to do anything il- legal. i- Even before today's White House announcement a high i White House official n Wash- Ington, discussing reports of Chapin's :departure, said that )-"a second grader could see what's happened. Of course it's :the Watergate business. We'll Stiever say that . . ? Dwight's !one of the finest." The official said Chapin is ?Personally looked,on with 'great. favor by Pesident ? Nixon, but that Chapin "got caught in the. Middle." ' According to the official, there has been "serious talk" about Chopin leaving for sev- erttl. months, and several busi- WASHINGTON POST 30 JANUARY 1973 1tiessitien clOie 'to 'the White House realized the situation and have offered positions of high pay and great responsi- bility, to Chapin.' The official said that The New 'York Times report that Chapin is being "forced out", by Haldeman Is "too strong." Ile Indicated that it was more itt mutual understanding ,to ,ovoid possible embarrassment. According to the official, Cha- pin did not want to leave but accepts the "realities" and is ,how looking on the brighter side.. , Just as Haldeman is regard. ed as the President's alter ego, carrying out the his or- ,ders with energy and dispatch, Chapin haa been regarded as Haldeman's alter ego. , A brisk, efficient and , per- sonable aide, Chapin not only has, handled the President ap- pointments schedtile, u rider Haldeman's supervision b ut has carried out such important assignments as the ' advance 'Work for the, Chinese and Rils- Ron trips: ittWashington Post reporter , One White House aide toldi last year that Chapin is "a, super loyalist" and is "super- dedicated" to the Presidenti, believing that he will "go down In history as the greatest iiv- big President." Chapin first worked for Mr.I ;Nixon in the unsuccessful Call, fornia gubernatorial campaign 'Of 1962, and then went to' Work for Haldeman at the J.' .Walter Thompson advertisingl agency. ? , :. Chapin declined to accept -telephone call from newsmen today., At the Florida press briefing today, Ziegler dismissed an In- trinity about Chapin's relation- ship with Segretti as "A queit- :-ion from the past' and refused to , discuss it. He did Lay, though, that Chapin's ,effectiveness at the White Rouse had not been hampered by the publicity' surrounding the Watergate affair. ; Chapin and Ziegler were Icollege friends at the Univer- ?sity of Southern California, and the 'White: House press secretary said he had talked personally with Chapin many ,times about his plans. Ziegler said Chapin had "received al :number of very fine 'offer* from a number of very fine companies" and indicated that Allis was the motivation for his decision. ? "He made the decision t6 'leave because he decided Mt 'was the time to move to ,a busl- ness career," Ziegler said. ' ? Ziegler spent several minutes lauding Chapin's "fine contd., 'bution to the presidency" and ,deploring the news account that he was forced to leave, At one point Ziegler interrupted his comments about Chapin to ,say: ? "Some people in this rooini Al looking at eacivother With 41ceptIcalleye that Is ye 1in/fortunate." By Lawrence Meyer Wnehtnaton Post Stott Writei The prosecution in the, '..Watergate bugging trial de- : scribed G. Gordon Liddy yes, treday "the boss, the money. ? man, the supervisor" of the al- leged conspiracy to bug the ;Democratic Party, a man "not ., content to follow out what he was \ supposed to do" as a 'Nixon campaign aide.. Prodded by Chief U.S. Dis- trict Judge John .I. Sirica, the prosecution closed its case, the .defense opened and closed its ..ease in a matter of hours and, final- arguments were begun ; yesterday?the '15th day of the' trial. The case is "expected to' ; go to the jury today. Liddy's lawyer, Peter Mar- :, oulls, told the jury in a brief opening statement that Liddy had had a "shadow of guilt" cast on him from ?E. Howard Hunt Jr., a former White House aide who earlier pleaded WRY to the same ? charges of conspiracy, bur- glary, and illegal wiretapping ,:and eavesdropping for which Liddy Is on trial. "I intend to: Show this shadow is without Substance," Maroons said. , Liddy and his .codefendant, lames W. 'McCord Jr., both of . whom worked for the Commit- tee for the Re-election of,the President 'before the JUne 17 ? break-in at the Democratic Na- ..tional Committee's Watergate :headquarters, are the only two :tt emitInIng defendants of the 'Seven, Including Hunt, ,origi- Approv natty indicted. Four other men besides Hunt, all from Miami, also have pleaded guilty. As Maroons was delivering his opening statement, assert- ing that both the prosecution and defense concede that Lid- dy's superiors at the commit- tee "are on the safe side of the line of innocence," Sirica in- terrupted him "Walt a minute now," Sirica said. "Who made that concession? Mr. Silbert (the chief prosecutor)? You are ar- guing what you think the evi- dence is. This is for the jury to decide." MorOulls had asserted that 'deputy campaign director Jeb Stuart Magruder, scheduling director Herbert L. Porter, ad- ministrative director Robert C. Odle Jr. and campaign treasurer Hugh W. Sloan Jr.? all re-election Committee offi- cials with whom Liddy had freqUent contact?"are with out involvement and Of course, had no criminal intent." : ? Shim said that if the jurors ,"decide that Mr.. Magrudet or, Mr. Odle or Mr. Sloan are in- volved in this alleged conspir- acy, they can do it. However,. they're not on trial. I ? Will grant you that. They ? (the jurors) can draw 'their own conclusions from the evidence in the case." ? Shies has- repeatedly ex? - pressed his determination' throughout. the ,trial to find out who else, "If anyone," was lergrkeletne11515t0egb . celbi fl( spiracy. When the five persona who pleaded guilty entered their plea, Sinks attempted to question each of them to :de- termine whether anyone other than the; .seven persons in- dieted was involved. As a legal matter, however;; the jury can do nothing more in the case than decide the guilt or innocence of Liddy and McCord. It is not ,the function of a jury in a crimi- hal trial to formally diclose any findings beyond a verdict or to recommend further at- tion at the conclusion of a trial. . . . Liddy afid McCord, will called three witnessea' to tes- tify yesterday concerning their character and reputation in the community. Each of the six witnesses testified that the defendant about whom he or She was testifying had an ex- cellent reputation. ? In presenting its case, the prosecution called 51 wit- items. ln addition to the 60 witnesses on its originarlist, the prosecution called three witnesses it had ' not an- nounced at the trial's begin- ning would appear. Of file 12 witnesses not called by the prosecution,' three are FBI agents. Two other. witnesses, Robert. Schreiber and Mary Denburg,' did not have to be called be- cause their testimony was- agreed to by stipulation, A. sixth witness, Thomas Yann,1 is an official of Hunt's country. anarentiy was notl P77-00432R00010 'needed as a witness after Hunt pleaded guilty. A seventh wit- ness Margaret Johnson, of Glendale, Calif., also was not tabled because of Hunt's guilty plea, according. to informed sources. The principal witness who was not called was Jack Stew. art, a former CIA agent del. scribed by tie prosecution tot a man Hunt attempted to re,. cruit for electronic survelid, lance activities. Stewart, at,), cording to the prosecution, ra,,, jected Hunt's job offer. Ste* art's testimony was ruled btk by Sirica. as being "too r6-1 mote" to the time of the Ieged conspiracy. - Twd additional witnesses-;-: Diane Konowalski and Estherl 1Urby?are employees or fortn-{; en employees of prosecutioni witnesses who were called!, The testimony of these tw6; Witnesses was net needed, it 19 Understood, because it would have duplicated testimony given by others, , The two remaining witneik, ses?Maria Marti and Sylvia Campos?both are f r o Florida. Their testimony, '16 is understood, would hav6 !involved purthases made be some of the four defendante: who pleaded guilty. In his closing argument, Aus sistant U.S. Attorney Earl 34 Silbert, the Main .prosecutor hi the trial, emphasized LiddyV 'alleged role as the ringleader In the conspiracy. At no Vine 010i7800*-9-ial began bag thi !Trrr:71-7r -77,07,717.19,- ? ? ? , it ? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 ,WAStiiiGTON POST .31 JANUARY 1973 te uestered'. jury been lit-1 formed that Hunt and four' ether defendants have pleaded guilty. Silberttraced the testimony in .the trial, recalling that 25- ' year4d Thomas GregorY, said he was recruited by Hunt to spy first on. Sen... Edmund S. - Muskie's campaign for, 'the Demo'cxatic Presidential nomi-' ' 'nation and later on the .cam- paign of Sen. George . Govern., ? ' At one point, . Silbert ? rei' Called, Gregory testified. that Hunt picked him up In a car! ;at night. A. third man, wearing. :dark glasses; was in the badlel teat. As he Spoke through 'gritted ' teeth, Silbert . turned and' laced Liddy, who sat back in his chair, rocking slowly, a faint smile on his face. "Who .was it?" Silbert 'gild.' "The 'de- fendant Liddy; waving to you as he waved so many times throughotit this trial. A big joke." As Silbert. spoke, Lid- dy gave a brief wave with his hand, a gesture he .has Made several times to respond to, witnesses who identified, ' . Later, .Silbert recalled how. Gregory had testified concern- ing a meeting in the Manger- Hamilton Hotel at 14th and K Streets NW, attended by all seven of the '.men. later in- dieted. "And there you have the classic conspiracy,": Silbert said. "All the conspirators- to- gether, plotting, planning, con- spiring together." Silbert also referred to testi- mony that Liddy, a lawyer; and Hunt had traveled to- gether, using the aliases of George Leonard and Ed War- ren. "Since ,when does a law- yer ? have to run around .the eountry?Callfornin, Miami, in his own city?using an alias if he's engaged in honest, valid, legitimate activity,!' Silbert bald. . After ? pollee arrested Mc- Cord and 'the four men from Miami inside the Watergate On June 17 at 2:30 a.m., Silbert recalled that Hunt had con- tacted M. Douglas Caddy and that Caddy had testified he Spoke With Liddy at 5 a.m. Caddy said-' Liddy retained him .at ; that time as his own' lawyer. "At 5 o'clock in the morning," . Silbert said. "5. o'clock in the morning .... Ev.t eryone has a right, to retains a lawyer, but at 5 o'clock in the morning?" Silbert reminded the jury that a few days after the break-hi Hunt's employer, Rob- ert F. Bennett, testified that Liddy ? called ? him. Liddy wanted to meet him, Bennett said, but not In his office, be- cause he was afraid of surveil- lance. 'Again gesturing toward Liddy. a former FBI agent and an ex-prosecutor in Dtitchess. County, N.Y, Silbert said, "He's playing cops and -rob- bers, that's what he's doing.. Only, this time, he Isn't the. Ex-Aides eal By Lawrence Meyer . Wp.4411hatort Post Ellatt WrItri, .4 officials Two former t ? . 'Prcsident Nixon's re-dec.. lion comMittee,'-q:-Carribii.` ?'and 'James W. Me,?., Tor& Jr., yverc- ? coilVittbdi, -.9.$tet*Y?c,C6?Gfinil inky and bugging ;Democratic Party's - Water-f !gate ileadqUirteri. : 4 After 16 days of trial span- ning 60 witnesses and more. than 100 'pieces of 'evidence, the jury found them guilty of all charges against them in:, just under 90 minutes. - Chief U.S. District , Judge John Sirica ordered LiddY,' who was also a former Whited Itouse aide, PRI agent and , Prosecutor, and McCord, a vet- eran of the CIA and the FEL jailed without bond: Sinks' said he would' hold a hearing'. on bail after defense lawyers file formai written motions. Lawyers for both Liddy and McCord said they would ap- peal the convictions, with Mc, Cord's lawyer attacking the. condor! of Judge Sirica .dur- ing the'lrial. Five other men who Were In. cop. He's the robber." Liddy had been authorized' by Magruder to carry out in-) telligence activites, Silbert' said, but Liddy was "not con-, tent to follow out what he was supposed to do. He had to: twist it, to divert it." t. McCord and Liddy "were, off on an enterprise of their own," Silbert said, biddy took $114,000 in checks that had been ttirned over, to Sloan as campaign contributions, con- verted the money to cash and then gave it back to Sloan, Sil- bert said. Liddy then todk back $24,000, Silbert said, part ' of the estimated $232,000 he; received to conduct activites for the committee. The $24,000, Silbert said, is "the' money we have traced into the possession .. . of the four per- sons from Miami." Referring to McCord, also a former FBI agent and a for- mer CIA employee; Silbert said, "Isn't it sad. Former FBI agent, isn't it sad, directing the interception of telephone conversations." The "proof of guilt it to overwhelming," Silbert told' the jury, "that the only vet- diet fair and consistent With the evidence and fair to both side's would be a verdict of guilty on all counts in which. they are charged." - Approved 'For Release 2001/08/07 : CIA=RDP77-00432R000100070001-9 777-7-1-1171/1-,,t1F17171177 jl -77T17 ?I !HI r$ ',,?' dieted' 'With? Liddy, and' 'Me' Cord, including former White House aide and CIA agent E.' Howard Howard Hunt 'Jr;'' pleaded guilty, early in the trial to all't charges against theta:. ? Liddy, 42, 'liad paintained balm', generally 'sniiling exte rior throughout the 'trial. fie Stood impassive, with his arms, folded, as deputy court clerk:. LeCOunt Patterson read the JUrY'S 'verdict,' repeating silo times; "guilty?' once for each -of the counts againtttim. McCord, 53, also showed no emotion as Pattersen read the Word "guilty" for all eight': - ? , counts against'him. , Liddy; forMer Blinn& cetin-,* 'Set for the Committee for the'' Re-election of the President,'. ebuld receive a maximum sen--? lence Of 35 years. McCord, for- mersecurity ,director for the'.; committee, could receive a; maximum sentence , of 45 years. Sirica set 110 date for sentencing. ' , 13efOre 'being jailed by deli.' uty U.S. marshals Liddy on-, braced his -lawyer, Peter L. Maroulis, patted him on the haek,'and in a gesture that be- eame his trademark in the' trial, gave one final wave to the spectators and press be- fore he 'was led away. Prineipal Assistant U.S. At- torney Earl J. Silbert said, af- ter' the verdict was returned; that it was "fair and just." In hit final statement to the jury, Silbert told the eight 'women and four men that "when people cannot get to- gether for political purposes without /fear that their prem- ises will be burglarized, their conversations bugged, their phones tapped . . . you breed distrust, you breed suspicion, you lose confidence, faith and credibility." Silbert asked the jury to "bring in a verdict that will help restore the faith in' the democratic system that has been so -damaged by the con- duct of these 'two defendants land their coconspirators." Despite repeated attempts by ,ludge Sirica to find out if anyone else besides the seven defendants was invelved in the conspiracy, testimony in the trial was largely tonfined by the prosecution to proving its case against Liddy and Mc- Cord, with occasional mention made of the five who had pleaded guilty, ' The jury, which was --, sequestered throughout the, trial, was' never told of the guilty pleas. ' When Hunt pleaded guilty clan. 11, Stiles questioned hirn' in an attempt to find out if anyone besides the persons in- dieted was involved in the con- spiracy. _Hunt's lawyer, William 0. 'Dittman, blocked Sirica's ques- tions, saying the prosecution had told him it intended to tall Hunt and any other de- fendant who was convicted to, intify before the grand jury. An apparent purpose of re-- rieWed grand jury testimony Would be to probe the invOlve.. Inent of others In the liuggilig.1 '. Asked yesterday what steps he' now intended to take, Silber said, "I don't think I'll cormil !tient on anything further." 1 k".According to testimony .lrtj the trial, Liddy ', was given, About $232,000 in'' campaign; ifunds purportedly to carry out a number of intelligence-gath4 ering assignments given him' hy' deputy campaign , director Oeb Stuart Magruder. '... ' The prosecution said -it'l could account for ?lily abouti $50,000 of this money, and that It Was used to finance the soy; ,ing operation against, - thel Democratic Party- , , -,???Ii I In his agrument to the jury, Silbert . called Liddy the; , i "mastermind, the boss, the tn oney-rnan" of the operation,: Maroulis, defending Liddy' attempted to Put the blame ori: - Hunt, who Maroulls said wet Liddy's trusted friend. "Foni) , . tlie evidence here, it can' well. 134 inferred that Mr. Liddy gotil h?rt by that trust," ,Maroullil Id. , .,...1 .' McCord's lawyer, Gerald., Alch; told the jury that Me- Cord "is the type of man Oki( is ibyal to hittountry and vlin does what he thinks is night.''t At one point, Judge. Shim ini;.i terrupted' and told Alch he was only giving his ."personal opinitm." i Alch criticized Sirica during.1 a recess, saying the judge "did, not limit himself to acting As til judge?he has become in addi- tion, a prosecutor and mil investigator'.. . Not only doeti he indicate that'-,he defend- ants are guilty, but that a lot of other people are guilty. 'the. whole courtroom Is permeated' with a prejudicial ,atmos-'. phere." .Alch said that' "in , 15 year of practicing law" he had not been previously interruptedi by a judge wiiile giving his fi-; mai argument. - McCord and Liddy ? Were each convicted ,t:if the follow. ing counts:' ., ? ? Conspiring to burglarize, wiretap and electronically, eavesdrop on the Democratic Party's Watergate headqua* tert. (Maximum penalty?fiVe years' imprisonment and ? 0 $10,000 fine.) ? Burglarizing the Debi& eratic headquarters with the intent to steal the property Of another. (Maximum penaltY ...45 years imprisonnten0 ? Burglarizing the .Demo?:; erotic headquarters with 016z intent to unlawfully wireth and eavesdrop. (Maximum pen! iity-15 years.) . ? Endeavoring to eaves', drop illegally. (Maximum' pea' alty?five years' imprison' ment and a $10,000 fine.) ? Endeavoring to wiretap Illegally. (Maximum penalty -- five years' imprisonment and a $10.000 fine.) . ? Illegal wiretapping. (Maxt. mum penalty?five years' itIV pri so n me nt and a $10,000. fine.) . !..?,..in addition,' MeCOrd ..Wai 1: Approved For Release 2001/08/07 : CIA-RDP77-00432R00010007a001-9 4 Whyte-led of two addit tonal counts: ? ? Possession of a device pri- !barfly ,tiseful for the sutrep- titious interception of oral Comm unications. (Maximum penalty?five years' imprison- ment-and a $10,000 fine.) '6 Possession of a device primarily useful for the sur- :reptitious interception of wire. Communications. (M ax I mum penalty?five years' imprison-, ment and a $10,000 fine.) . 'Although the total number `of , years Liddy could be sem: lenced to adds up ,to 50 and ,y1cCord's total poisible sen-, itetice adds up to ,60 years; neither, according to legal sources, can receive consecu- tive sentences for both burg. ,lary counts. , As a result, Liddy's maxi- 'Mum sentence c o it 1 d be 35 'kers and a $40,000 fine al-id McCord's Maximum could be: 45 years and a $60,000 fine. In 'addition to? Liddy, Mc- Cord and ,Hunt. four men from .Miami were named in the In elictrnent?Bernard L. Barker, Frank Sturgis, Virgilio II. Gon- zales .and Eugenio R. Martinez; All four pleaded guilty Jan. 15 to the seven counts. With iWhIch they were charged. They face ' maximum sent; ences of 40 years in jail and fines of $50,000. The four men 'Were arrested, with McCord,, by Washington Police in the bemcicratic Party headquar- ters at 2:30 a.m. on June. 17, the arrests marked the be- 'ginning of the Watergate Au- ?? These five men, dressed in business suits, ,and wearing tubber surgical gloves, had electronic bugging equipment and sophisticated cameras and film. In their possession or their t'ooms they had $5,300 in- $100 bills. The ' story .unfolded slowly. The day after the arrests,. It: Was learned that one of the five men was the security co- ottlintitpr for the. President's Fe-election coMmittee., That Was McCord, one of the two, defendants left in the Water-' - gate trial yesterday, . Two days after the break-in, :White House Consultant Hunt . . !was. linked to the five sus- pects. Hunt pleaded guilty to all counts in the opening days Of the trial. . Near the end' of July, it was learned that:the finance coun- sel to the Nixon re-election 'committee was fired because' hp refused to answer -FBI 'questions about the Watergate bugging and break-in. The counsel was Liddy, a former Treasury and White House aide who was the other de- fendant to remain in the trial:. On Aug. 1, The Washington, Post reported that a $25.000, cashier's check intended as iv .Contribution to the Nixon re- election effort bad been depos- ited in ? the Miami bank ac-, count of one of the Watergate suspects. The General Ac. Approve Counting Office; the inveritiga,! Bye arm of Congress, ordered an immediate audit of the Nixon campaign finances. The audit report concluded that former Commerce Secrej, tary Maurice H. Stans, the' chief Nixon fund-raiser, had a' possible illegal cat!) fund of? $350,000 in his office safe. The $25,000 from the cash lees check and another WW1 fi-om four, IViexlcati 'check*, passed through that fund, .1114 GAO concluded, .` Last Friday, the '.FIntinee: Cornmittee to Re-elect" the' President :pleadect no ,contiesp . . ? . In GS; District 'Court' td,erght Violations Of the 'campaign, fP nances law. The eOmplaiiit, charged, among ,other:thingal that finance committee :PRI!' 'Oats failed,. t6 keep ,adequatii,, records 'of payments to the committee..' "was ? fined $8,000, : ' ?S :'? . In' September, reParta?sart', faced that a former FBI agent': and self-described participant: in the bugging had become tt government witness in', the ease. He was Alfred C. Baltl-,? win HI, who later was tote. tify that he monitored wire, tapped conversations for three' weeks from a listening post tri the Howard Johnson Motor' Lodge acrosa the street Rein the Watergate. ? ? . On Sept. 15, the ? federal in' dirtmpnt "against . the,. seven original defendants was `ere- turned. The net day, :The' Pogi re; ported that . the $350,000 cash, fund kept ? in' the Stens safe was used, in part,-aS an' iritelIV gence - gathering f u rt. On Sept. 29, The ? Post repartee; that Sources. close to. the Watergate investigation Said! 'that fernier Attorney General John., 14: Mitchell?,tontrolled disbursements ?frem the, Intel. ligence fund': or ' solcalled "secret fund." ? ? On. Oct. ? The .Post re, 'Ported, that the 1t had ctin eluded 'that :the Watergate bugging,was just onelacidet in a campaign Of Political 6 I. ?nage and sabotage directed, by the White House ? and. the., Nixon committee: ? ' ? The sterY identified DOriald H. Segretti, a young Califoraii lawyer, as a paid Politital arty Who traveled 'around the 'Conn-. try recruiting -others. and dt!). ,try the -camPaign6 Democratic prealdential tenders. , 'Five days later, the: Prat - dent's appointments 'secretary, Dwight'L..Chapin, was identi-, fied as' a 'person 'who" hired Segretti and received reports. .from him. Segretti's other eon-. tact was Watergate defendant Hunt:Sem:Ott received about 535,000 'in pay for the disrup-2. .tive activities ftom,Herberr Kalmbach, the President's: nee, sonal, attorney, accordittal'tk federal investigatnri.,- 7 ' .Thi a Mend* It 'a *n flounced that Chapin we* 're--; - signing his White ,House NEW YORK TIMES 1 February. 1973 Watergate Conviction , The conviction of two of the senior ufficialt lit Pres1.1 dent Nixon's campaign organization for criminal con-',; ,spiracy, burglary and wiretapping of the Democratic t; 'National Committee's Watergate headquarters proves !that this sinister operation was no trivial escapade byl .Unimportant persons. It was pati of a larger, far-flung. ',well-financed plan to use political espionage and sabo,1 ,tage techniques to disrupt and defeat the political op*: 4sition. The intrusion of these police state methods intoi 'domestic politics is witho'ut precedent and deserves the; mOst thoroughgoing exposure and condemnation. The White House has dissembled again' and again in,: a ,frantic effort to divert the searchlight ?of publics suspicion from its own responsibility for this ugly busi2 rites& But thanks to the courage and tenacity of Chief, ';judge John J. Sirica of the United States District Court 'who presided at the Watergate trial, the public now haa ?on record sworn testimony that former Attorney General'. John N. Mitchell, the President's campaign manager, and; ; former Secretary of Commerce Maurice H. Stens, Mg? i'chief Money-raiser, personally pproved the disbuts&:' ' ment of $199,000 to one of the convicted defendants t& i,carry out this espionage. Judge Sirica elicited that testP, ?Mony from Hugh W. Sloan Jt., the former' treasurer ()ti- the Committee for the Ite-election of the President, afteri the prosecutor in the case had unconacionably failed WI .do so, Mr. Sloan also testified that one of the convicted 'defendants told him after the police made the Watergate2, :arrests: "My boys got caught last night. / made a mis- take by using somebody from here, which I told theme would never do." ' That testimony was not contradicted, hut neither didl , Mr. Sloan explain who was meant by "them." It is tt (fair deduction that senior White House aides as well Etat, Herbert W. Kalmbach, the ?resident's personal lawyer.1 not only had knowledge of this repulsive operation buts! also planned it, recruited agents for it, and received', their reports. Dwight L., Chapin, President Nixon's appointment secretary, has been forced to resign because he has beerici publicly identified as the White House contact for onei, :of the agents. But no one who knows the amiable and.' loyal Mr. Chapin believes that this young man is moreil than the "fall guy" for others more senior than Maisel( ?in the White House apparatus who are still in office. ,4,? !, "All the facts have not been developed by either'side,"$ Judge Sirica observed last:week to the lawyers for thi! ,prosecution and the defense. The indictments Were drawn as narrowly as possible, and the Justice, Department hag: ibectl less than ardent in exploring the 'case. , It is clearly the duty of the senate to go forward Wi.t.W Its inquiry and make an unremitting effort'to Wert* all of the higher-ups and all of the ,ramifications of ON ? , tailless conspiracy 'to subvert the normal exerelso-on "political freedom. *OireilielettStag CY0111AE011r : CIA-RDP77-00432A1000100070001-9 witness in ? Tirrit.111,77 7777,771117777 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100070001-9 WASHINGTON POST 31 JANUARY 1973 ri ? ri Secret: ? By Cart Bernstein ? and Bob 'Woodward :"W.a0Inattin Post. Staff Wotergate W : bugging ',trial Was . ? ' ;Marked by questions not asked. of Wit-.! 'heises, answers not given, witnesses net ? .alled to testify and some lapses Of mem-4r'. -Inory by those testifying under oath; ? News Annlysia ' of the seven original defendant liti?the case pleaded guilty in the opening ?days of the trial, narrowing its senje ,from the start. , All seven men were indicted by a fett-, Loot grand jury on charges of. conspiring; YLo obtaininformation from the Democrats,: ;by breaking into their ? headquarters at: '?'the ;Watergate, stealing their documents,1 iphotographing their correspondence, wirei tapOing their telephones ? and planting . . electronic eavesdropping devices in their' ? offices. , The presiding judge said repeatedly that:. :he wanted the trial to probe deeply into. 'the bugging of the Democrats'. Watergate, ?headquarters?its sponsorship, funding,' ,purpose and 'possible relationship ,to al legal ions of a wider campaign of political -espionage and sabotage: ? ? ? But "all the facts have not been de.li ,f,veloped .by . either aide," ? ' District.; t..:titirt Chief Judge John J. Sirica :last week to lawyers for the prosecution!: and the defense. .??. ?.; ' Twice Sirica ordered the 'jury from the courtroom after the prosecution's examinaAon of key witnesses and then questioned them himself about ? matters not probed by the prosecution. .On Jan, 15, during the trial's, 'second week, Silica addressed four of the defendants aftert they had pleaded guilty snd outlined some of the issues he said he .expected to be devet- ,operi in the courtroom'. Sirica said that the jury is "going to wonder who, if anyone, hired you to go in there, if you were: . ? "I am just assuming that. .they (the jury) will be asking themselves these questions,'!. ? Siriea 'continued as the four: men stood before him. "They. are going to want to know if there are other people, that is, 'higher-ups in the Republican , Party or the Democratic Party; or any patty who sic men- tioned, or who are involved in' ',this case and should be in this. . ease, you understand that? "The question will arise, tin doubtetily, what was the ma- five foe doing what you people soy you did," Sitica 'They will want to know where. this money enme from, who was the money man, who. did the paying off. ... They are 'going to want to know a lot of things before this . case la ? over." ? Those questions could have ? ,been posed to witnesses from three sources-government, at- torneys representing the ores-. LO Hired pies and Wli ecution, lawyers for the ,de- 'feriae and the judge. When the trial of the last two defendants still on trial =former White House aide G. Gordon Liddy and James W. McCord Jr., the former secur- lty, coordinator lof President Nixons' re-election committee ?ended yesterday in convic- tion on all counts, the gilts - lion remained ' Unanswered, 'During cross-examination of ? government WitneSses, their attorneys quite expectedly' have not pursued the lines of Inquiry, suggested by Judge' Sirica. ,r ? The government,, for ; 'part, acknowledged that It' knows the answers to many of the judge's questions but can' tends they are more inferenA tial than legally conclusive= t? And therefore should not have' been raised by the prOsecutten during the trial. Last FridaY, Sirica rejected; the prosecution's suggestion, that he read the Secret Airy inintites of the Case ?de: find the answers to' some of, '.his questions, and said he Would continue Personally interrogate witnesses when he felt it necessary. ! ? He then ordered that testi- mony obtained by his own questioning of S key witness outside the presence of the; jury, be read to the 12 mem- bers of the jury. That testimony revealed that former Secretary ot Com- merce Maurice H. Siam,' fi- !Mince chairman of the Nixon Campaign, and former Attor- hey General John.N. Mitchell, the President's campaign man- ager, 'both had verified that deputy campaign director Jeb Stuart Magruder had author- ity to approve cash payments ,to Liddy for an intelligence ,gathering operation. The grand jury's 'indictment, which was drafted by the three prosecutors and ap- proved by their superiors in the Justice Department, dealt only with the activities of the 'seven original defendants and was limited to allegations the 'government believed could be conclusively proven In court. 4 it mentioned none of the un- dercover activities that the prosecutors previously char- acterized as "improper" and "despicable." hat which, they Said carefully skirted the edges Of the law on moat: occasion"C . Former White House aide F. Howard Hunt Jr. pleaded guilty in the trial's fourth dny, and. the four Miami men at% rested imide the Watergate on June 17 followed his lead twO 'days later. When the five detendanth were dropped from the case, it was no longer legally per. niissible to admit as testimony 'the details of any Conversa-? Bons they Might have had out. 1 ' side the general period of the i Conspiracy alleged in the grand ,jury's indictment?May 1 to 'June 17. ? . . That applies to statementa. ,reportedly made by Hunt and 'some .of the Miami men that ,high presidential aides had a& ;vance knowledge of the Water. 'gate bugging and other under.' cover activities against the Democrats, Since the guilty pleas were, entered, the prosecution did not call about 10 persons on Its witness list who could have testified about matters relatl. lug to. the five men. 'It did not -call Hunt and the. four others who pleaded guiltY, As witnesses against the two. remaining defendants. There :wes legal precedent for 'Out-, ? ting them on the wituesg stand: in the trial,, 'but the prosecu.j, lion said it would' prefer to being 'the five before' a grand': jury for secret questiottitut! about their knowledge of the Watergate bugging and relat ed matters. . ? "The truth will conte out,", the judge. declared Mat Tuesf ? day. Then he paused andi 'added: "I hope it will come' out larthis case. And if I think, should ask questinns bring out additional facts thati haven't been developed, shall continue to do so.' ? That afternoon, Sirica ques- tioned Hugh W. Sloan Jr., the' ?former treasurer of the Cont' ? mittee for the lie-election ot, the President, about the au-,_ thorization of large. cash pay-: ments to Liddy?then finance; einnisel of the Nixon commit-1 tee. ' ? According to investigatort end the prosecution, Sloan had no prior knowledge of the' Watergate bugging .or any, other-espionage akivitiee agains the Democrats. He' quit his job when, sifter June 17, he learned! that money he . had been disbursing was used!, for clandestine operations, in- vestigators have said. In response to his original: questioning by the proseenl tion, Sloan testified TuesdaY': that he paid Liddy $199,000 on" orders from Jeb Stuart Magru- der, then deptuy director of President -Nixon's re-election', campaign. , Earlier; Magruder had teal' tied that he approved the 1109,000 cash payments td, Liddy for purposea of setting' up an "intelligence network", Which, Magruder sail, would Use only legal methods to ob- tain information. Neither Magruder nor Sloan was asked by the prosec3tion who had authorized the? payments to Liddy or who else; might have known about the: "intelligence network." Judge' Sitica did not question tlagroi der, a former White House' nide who was the necoritt-in.k 'Command of the Nt1ton Ortiz, Approved For Release 2001/08/07 : CIA-RDP77-00432R068100070001-9 -r- 77777,7577, 717,71-7717'TS APproved For Release 2001/08/07: CIA-RDP77-00432R000100070130.1-9' iign committee. ? However, Strict, excuse, the' jury and questioned Sloan:, .the campaign treasurer, atj 'length. The judge asked Sloan,' .41 question, including these; 'In the following exchange: Shim What was the pur- pose of turning $199,000 ovei; to Liddy? ? . Sloan: I have no idea. ,Sirica: You have no Idea?. ., Sloan: No sir. ? . Silica: You can't give Us any Information at all? Sloan: No Sir. I was merebf authorized to do so. I was not told the purpose. - Sirica:: Who authorized yoti to turn the $.109,000 oyer Mr. Liddy in cash? Sloan: Jeb Magruder. Silica: For what prupose? Sloan I have no idea'. . Sirica: You didn't quesiiati Mr. Magruder about the pur;; pose of the$199,000 Sloan: No sir. I verified with Mr. Stam and Mr. Mitchell' that he was authorized to make those.' ' ' SiriCa: You verified it .with who? , Sloan: Secretary Stans, the finance chairman, and f didn't directly, but he verified it with John Mitchell, the Campaign Chairman. Sielea: This $199.000 tould be turned over to Mr. Liddy is what you are:saying? Sloan: Not the svcifie amount, hut Mr. Magruder, his authorization .was autheriza. lion enough UP turn over' the sums in question. As is customary of -govern- tneilt ? witnesses in criminal trials, Sloan had been told in. Advance .bY the prosecution or what he Would .generally be' asked on the witness stand by: the. government. When Sloan had been questioned by the prosecution about the $199,000 payments and Other morley Liddy was authorized to re, eeive, the relevant .exchangei Went this. way: ? Prosecutor: Did there come: k time in the end of March or Carly April when you had a' conversation with Mr. Liddy about: dash disbursements to him?, ? ?Sloan: Yes , . . Mr. Liddy Came to me indicating that he was being authorized consid- erable allocation of cash funds. Itched with him at that time what seemed to br, budget which he did , not iihow to me other than-the figures On R. It totaled 1250,000. The first, disbursement he indi.. cated he would need fairly. shortly would be $83,000 with 'roughly $12,000 disbursements following. ? Prosecutor: After Mr, Liddy, gave you this informal inn about the budget, the $250,000; and the disbfirscment. relating to the $83,000. did ydn' check that With Job Magruder? Sloan: Yes I did. ? Prosecutor; 1V}int did lie tell you? Sloan: He Indicated that this budget w-is in fact--this allocation was th fact nuther- Ized to Mr. Liddy. Ile loth- tated, however, that he wished In each specific ,instance ? to Clear the amount and the. tim. Ing of the distribution. The' testimony of, Sloan tO. Sirica was different from the ',interrogation by. the prosecu- tion in other key respects. S1r:1 lcai unlike the prosecutiOn,:1 asked Sloan why he left the Nixon committee and was told he quit because of the Water9 gate incident and ". ' the' internal situations that:existed/ in the committee at the time.".'" Sloan alsd.gave a different: 'account to the judge of what, Liddy had told .him 'the daY, police had arrested' five 'then: Inside the Watergate on, June 17. ? When asked by the prOseetr- tibry what Liddy had said Sloan answered: ?"1-le said to: the best of my recollection,: ,'My boys got caught last night.: 4 made a mistake: Used somebody from here, which' t said l'd never do. I'm afraid am going to lose my job.',". When Sirica questionedl Sloan, he gave 'essentially' the same account but changed the,: phrase, used somebody: from here, .Which I said I'd? never 'do," to "I made a mis-? take by using somebody from\ here, which 1:: bald them I, would never do." ? '! ? Sloan, however, was not asked whether he knew Who Liddy meant by:"them." ' Assistant U.S. Attorney Earl, J. Silbert; the chief prosecutor' In the case, told' Sirica later: Meat "there was nothing in Mr... Sloan's testirnony that was a surprise to us or-that We didl not know." . Silbert 'presided over the grand jury that, investigated' the Watergate bugging andy the prosecution received the' F131's field reports in the case.' lAmong ?them were report? describing interYiews with the four officials of President Nix., on's re-election, committee who testified in the trial Ttica- day.' The four,-,who also ap7 peared before the' grand jury,, 'were Herbert L. Porter, sched, tiling director of the -Nixon campaign; Robert C. Okle, di- rector of administration; Ma, gruder, and Sloan. All are ex- White House aides. ? ? Federal investigators" have 'told The Washington Post that as much as $750;000 in Nixon campaign funds was expended on espionage and sabotage op., 'erations aeninSt. the Demo- crats and that Mitchell, 'Ma., gi?tufer, Porter and titans were among' high campaign and. While House officials who had authority to receive or ap- prove such cash payments from Sloan. Neither Judge Sirica nor the prosecution asked any of the! Nixon committee officials on Tuesday whether they knew:of anyone in addition' to those four persons who received or approved such payments. Nor were they asked 'whether the money received by LiddY was the only cash Sloan disbUrsed fer elatititatine operations. Among such payments, ac- Cording to' federal investiga-' tors; were at least $25,000 to Magruder; and a minimum of $35,000 to Herbert W. Kalm- bach, President Nixon's per- tonal lawyer and until April 't the deputy finanae chairman Of his re-election campaign. Investigators reported that Kalmbach, who Was also inter. viewed hy,the FBI, gave the money to a California attor- ney, Donald Segretti, to spy im and disrupt the priMary ampaigns of various Demo, cratic presidential candidates. The nanie ?,'of Segretti, who also was interviewed by the 'FBI and appeared before the Watergate grand jury, was struck from the !prosecution's proposed list of vitnesses at about the same time, that the government learned that How, and 'Hunt wanted to plead guilty. ?According to federal investi- gators, Segretti was recruited to participate in spying and sabotage operations by Dwight L. Chapin, President Nixon's appointments secretary, and reported on his activities to both hunt and Chapin. Testiniony either from or' About Segretti, who federal in- vestigators say was not in-' 'Volved in the Watergate bug,' iging but received other under.. !Cover assignments from Hunt,' might have dealt with some of 'the broader questions ,Judge Sirica said he wanted an.: swered at the trial., ' In an account lly The Los Angeles Times, Assistant U.S. ;Attorney Silbert is repotted to have said that Segretti "would ',have to he tied in with some- :thing Illegal" to be called as a 'witness, and that there is no evidence he broke any laws. "Silbert agreed in an inter- view that allegations about Segretti, if true, could place the Watergate case in a larger perspective for jurors," The Times account Said,. Many of the broader issues posed by Judge Slrica t were explored in detail by the FBI, particularly in its questioning of the four Nixon committee officials who testified Tues- day. Among the questions cov- ered by the !FBI, but not raised at the trial:were: .? Who conceived the origi- nal idea for the "Intelligence network" mentioned by Ma- gruder in his testittiony, And who gave final approval to the plans? According to investiga- tions, the decision to under- take undercover operations against the Democrats was made in the White House as a basic strategic element of the President's re-election cam. paign and the plans were di; rected by presidential aides at; the Committee for the Re-eleco, (ion Of the President. ? what Information was re. ceived for the $233,000 in cam, Orden funds, which, according to court testimony, was given to Liddy for intelligence Work Approved For Release 2001/08/07 : CIA-RDP77-00432R0001 39 'and who?beside ? Porter and ?received informa-, ;Hon? Magruder and Porter% mentioned four items of ill.' formation they received: date' about an anticipated demon, stration in Manchester, N.H,; by a left-wing group.; Infor-, mation? about right-wing. demonstration in Miami; indi- cations that as many as 250,00o demonstrators *Could 'be ,est., pected at the Republicans' Hal' convention site of San; Diego;, and information about: "tnajor 'polluter" who wua! giving financial support -.to if Democratic presidential candi4 date. According to investigators,1 additional information. web ceived from Liddy, some of IC directed to Other officials ritt the White .1fotise and thei, Nixon re-election committee., o What other 'intelligence)! assignments d i d Magrud0 give Liddy? Magruder testi, fled that there were "a mire , hoer of others." He was asked, f by the prosecution to give an' ? example and mentioned the,i investigation shout the major] polluter and the Democratic, ,presidential candidate, neither ',of whom he named. Aceorditli to investigators, the eandlili0 was Sen. Edmund :5, Muskiei: apparently. the. Principal' tar- get of the Nixon campaltn'a 'undercover operations. . 0 Why' was' the $2.35,000 never accounted for by ?re. 'sponsible campaign officials irt' either internal aridits or Cam- paign spending reports filed, ,With: the General.- Accounting 'Office? In its. opening :State-. Ment, the prosecution. ,./gald that federal investigaterS haf:, Only been able to trace $60,60 of'the ? ' . 0 Why were records. of. t16 'transactions involving thp $235,000 destroyed, and 'what other records relating. 'to ? tin-, dereover activities. :were, Idestroyed?..Porter end -Sloan, testified that they ,.destroyed ,their records because they ditt. hot 'see any. need 'for; them.' Odle testified that, hours aftei'' the Watergate break-lh, lie led, (Liddy to the biggest Oath' shredder in the offices' of the Committee for the:Re-election` of the President. ' 0 Why did the Nixon ra. election committee, which coil- ducted almost all Of Its- bus!-], fleas by check, deal with'LiddY: in cash?most, of It in, 411.0p? bills. Testimony in- the WO has shown that the seven Men Indicted in the case used. $196: bills on at least 14 oec'asioria buy plane tickets, pay for hild tel rooms, radio receivers', meals and other 'expenses,/ One hundred dollar bill ,which the judge ??hafi., gait!. "were floating around Mite coupons," were found cm tiii five men arrested Itti `the We tergate. ?.... Why'did Nixon comnifttO Officials feel it was neebaStork to hire lb college-age stndentthi:i' to Infiltrate left-wind, fordtitiar. Porter testified that the 1.0, iititenlefirjo fere .,to .."0801MlIcitji 1 Approved For Release 2001/08/07: CIA-RDP77-00432R000100070001-9 einseivei, I HU) such oganLA- tions as the Yipples and the. SDS and nther such radical groups.", He said. , the - Nixon. committee was "not privy to a lot ,of the information that, lay, the Secret Serviee had or the FBI or state and local gcol-' eriiment police agencies might hive on the activities of theee groups." Did the Nixon coin- initteeofficiala believe the po- lice and FBI would not pro. vide them with the necessary information? , On lan..,11, the *fourth day Of the trial, when :fennel' White House consultant How ard Hunt pleaded *My, Judge Sirica firat began_ his at- tempt to probe ? more deeply Into the motives behIncithe al- leged conspiracy.. , ? -Though Htint Wes- mietinder- oath, Sirica called him lei ;the': bench and asked Hunk how. he got into the. alleged ',c6rispit..1 acy:: Hunt's attorney,- Williatti- O., Bittman,. intervened . atitt; aid It might be 'improper for'. Hunt to answer ? the ?queatitni!, , because. Mint would be. called" before the grand jury later to, answer such question :eret. Sirica dropped the linc of questioning. , . , ? When. foUr other men, "a1P .from Miami, pleaded ? guilty; Jan. 15, Silica called theft be-- lore him ,to answer similar, questions -- Again not under? Oath. Since asked Eugenio /1.' Martinez, one of the ,Mianil de-, fendants,' the 'following Mid- tions: - ? ? Sirica:. I want you to stirt , NEW YORK TIMES 20 January 1973 -from the beginning and I- Win( You to tell me how you.. get' into this conspiracy, how ? didi it happen that you got' involved? Do you Understand what I mean? . . ? Martinez: Yes,`J'understaiitt ?Slrica: Tell, me ? in your :Ciwi:1 Words What you did,' how.' YOU'," got mixed Up.(1,n, . . , ?. ?? . ? Martinez:' I believe.. the heir that you ,have : read: in ..the, charges (indictment) are tine; and are Just to the truth. ;?;:: Sirica:: That is a blanket' in-, ewer. I want to know. specifics." , Martinet: I am. Softy.. .? ...Snick' I., want specific * linere to riiy qneationa.',I tire nottatisfied. ? ; " " ? :nice , not, get specific' 'answers. Martinez repeated the charges in the indietnieitt and acknowledged their truth. The four Miami men; who ire' 'either Cubans or hav,e . *St Ales with Cuba., said they Were hot paid, except for expenSee ,and:!)Poa.hl.ein),..01v.,e4;,becauSe. ttney, thought their, "Iiptienia ? Would help. frit Cuba 'franfiot- del eistro'Sible NumereusvrenortS and giiv- ernms.nt reeerds say :that all four, .worked ;At One Utile or an- 'other for .the CIA. Sirica asked them,ifthey had. Iii :got '.ensWers.' of.' "No,' your honor"' or ? "Not that :I' knew, your honor."' ?When defending': Beritardi-1:,: Barker; a Miami real 'estate' agent; was Asked who Sint IBM $25,000 cashier's check le- 'tended for the President's, re- entagon Paper 'Secrets' Cited in Public Document By MARTIN ARNOLD Special to The New York Vines LOS ANGELES, Jan. 19?The Pentagon paperS trial, ip 'only the second day of testimony, went right to the heart today of the defense's legal position: That much of the spring of that year could have helped Hanoi plan last year's Tet offensive. Dr. Daniel Ellsberg and Ah- bony J. Russo Jr., the defend- ants, are accused of stealing eight pages Of the summary of the document along with the Pentagon papers themselves memorandum, and, by impli- cation, making them public, an act that the general said was directly harmful to American troops in Vietnam and, there- fore, the country's national defense. The defense elicited that Gen- era Depuy himself had helped edit the document that the printing office sold. That docu- ment was entitled "Report on the War in Vietnam: Com- mander in Chic? Pacific: Com- mander U. S. Military Assist- ance Command Vietnam?' The comparisons were ittade through the use of slides that Material contained in the top Secret papers had long been lit the public domain. The defense presented in Court a United States Govern- Ment Printing Office publication that WAS available to the gen- eral public for 56 a copy early in 1969. The defense pointed out that it contained Much of the tame information that the prosecution contends injured the national defense When it was made public, in a different form, at a much later dat.e. ?It was the second day in which Lieut. Geo. William G. bePuy, a prosecution witness, Underwent cross-examination by the defense. Yesterday, and again today, the general insist- ed that a 1968 Joint Chiefs of Staff memorandum on the ef- fects of the Communist Tet Offensive in Vietnam in the "responded: - l'rdr a ""defitliti 'fact. r cannot state who tent that itionezr 't .? ? - F The, fudge later ' asked: ; you think ' it ivalt *range', that amount of Mahe, ';Coining through the', mail With- 'Out - being registered .' 'Or ,APYt garKet, ' respetided:'. "NO, 'elOn't. think it is strange; Pith' honor. Like I said,I have tie& before this ' been leolVed in ',Other 'orieratiefie Which, took the ? strangeneSil, Out of that as Ott. as Urea eortv,, derned." ' Later ,Sirieri said., "i On yOU,'r when Berk 'geld he. got the money "in the 'Mail', in a blank envelope." ' kThen, according to the:04, dial chilli transcript, :the fetit t'in cherus". answered 39 guts- tions. . They enswered.? with hem'!" when asked if they were coercedt to plead 'guilty, or given any money or promises. and ? '"Yes, your 'honor"' or' "Yes,' :sir" When' asked if they were ..gtillty-t,t6, each Of the 'seven charges, in the Indictment against them. ? On Monday, ''..Judge Shit*, questioned Alfred' C. Baldwin III, it former FBI, agent and ?? key prosecution witness whb testified that he . Monitored Wiretapped telephone calls St defendant McCord's instruc- tion. In earlier testimony, Bald- Win said that McCord% usually Ireceived the logs of the mein. flared ? eonversationt, but: that once 1,in June McCord %had were shown to"the Jury. Thus, the 1968 Joint Chiefs of Staff memo, which General Depuy said was dangerous to make public, said this: "He [the enemy] committed over 67,000 combat maneuver forces plus perhaps 25 per cent were impressed men and boys, for a total of about 84,000." The general said that this in- formation, in the Joint Chiefs report, which was written in the latter part of February, 1968, could help Hanoi evalu-, ate American and South Viet, nam intelligence, and was "sem, sitive" even now, in . his opinion. But Leonard Weinglass, an attorney for Mr. Russo, using a slide, showed that in the report sold by the Government Printing Office early in 1968, Geri. William C. Westmoreland, Commander of the Army in Vietnam, had written, and Gen- eral Depuy had helped edit, this statement: ' "The let offensive Was ex- ceedingly costly to the enemy throughout the country. Be- tween 29 January and 11 Feb- ruary the Communists lost Isome 32,000 men killed and 5,800 detained, out of an esti- mated force of 84,000." The 1968 Joint Chiefs of Staff memo said, "Probably the only major unit to escape heavy losses was the 7th NVA fNorth Vietnam Army] Division. How- ever, present dispositions' give the enemy the continuing capa- bility of attacking in the Saigon area with 10 to 11 combat el- lialdneh deliver the loge, the Committee fen the !election of 'the President:'-