NIXON FINDS 'MAJOR DEVELOPMENTS' IN PROBE OF WATERGATE

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• Document Page Count: 43
• Document Creation Date: December 9, 2016
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• Sequence Number: 1
• Publication Date: April 18, 1973
• Content Type: NSPR

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