(EST PUB DATE) CIA INVESTIGATION

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 01481990
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 44
• Document Creation Date: December 28, 2022
• Document Release Date: August 7, 2017
• Case Number: F-2007-00094
• Publication Date: January 1, 1974

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j.
CIA INVESTIGATION
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INTRODUCTION
This report is submitted at Senator Baker's
request to summarize the highlights of an investiga-
tion of CIA activity, if any, in connection with the
Watergate incident and aftermath. It is based on
material in the possession of the Committee, both
classified and unclassified. It does not attempt
to deal with all the matters deemed pertinent and
important to a full an complete inquiry, but is
designed to generally describe the areas of interest
and concern pursued during the staff investigation
and executive session interviews since the conclusion
of the Committee's public hearings.
In view of the fact that the Committee has
chosen to have no further. public hearings; that the
Committee staff is in the process- of being, reduced
in .size; that further cooperation by the Agency
seems more likely on the request of the standilt
jurisdictional committeesAi rrL. on the request of 0
the Watergate Committee, and that the. total burden
of additional work to complete the investigation
thoroughly is probably beyond the competence of the
remaining staff in terms of numbers and time, Senator
Baker requested that this memorandum be prepared for
submission to the full Committee for further disposi-
tion as the Committee may determine. It is pointed
out that, while the report itself is not classified,
it makes reference to, and in some instances quotes
from, material which is elassified. Therefore, each
copy of this report has been treated for security
purposes as if it were.classified. They are numbered
and accounted for as in the case of classified material.
'The report is broken down into seven categories,
tabbed as follows:
. (1) Background
A recitation of the first references to
CIA connections on the part of the Watergate
burglars, reference to the possibility of CIA
involvement by the President in his speech of
May 22, 1973, and certain other published in-
formation and correspondence.
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(2) Mullen
The fact that the Mullen Company and
its president, Bob Bc!nnett, had an established
relationship with the CIA is described in
some detail in this section of the report.
Most of the information contained in this
section was discovered after Volume IV was
requested by Senator Baker. The CIA arranged
to release this volume and subsequent docu-
ments to the Watergate Committee in the custody
of George Murphy serving as security officer
for the Committee through an arrangement with
the Joint Committee on Atomic Energy.
'3
(3) Pennington
This section derives from a CIA supplied
memorandum dated February 22, 1974, from the
then Director of Security, r. Howard Osbor71.1
detailing the information that Lee R. Pennington,
a CIA operative, had entered James McCord's
house and/or office shortly after the Watergate
breakin for the purpose of destroying evidence
of a CIA .connection with McCord.
(4) Tapeg
This section derives from information
supplied to Senator Baker by Director Colby
� that there was a central taping capability
at the CIAthat the tapesAhad been destroyed,
� and the possibility that some of the tapes may
� have been Watergate related.A
5
r7
8
� (5) TSD
The initials stand for Technical Services
Division of the Central Intelligence Agency,
and the section deals with rather extensive
contacts between Hunt and the Agency and the
support supplied by the Agency to Hunt and
Liddy, which was used in a wide variety of
undertakings. A number of factual discrepancies
appear in this section which cannot be effec-
tiyy reconciled on the basis of the informa-
tion we now possess--sucn as Hunt s contemporaneous
participation in tne planning' ror ano Preparation .
of the Ellsberg psychiatric Profile.
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(6) Martinez
This tab refers to Eugenio Martinez, one
of the Watergate burglcirs. The section
delineates the Martinez-Agency relationship,
Hunt's early activities in Miami, the actions
taken or not taken by the Agency's office in
Miami, and certain other questions which are
essentially unresolvedA
(7) Recommendations
The seventh tab is self-explanatory and
constitutes the recommendations of the staff.
for further inquiry.
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BACKGROUND
In a speech on May 22, 1973, President Nixon stated in part the
following in connection with the Watergate matter:
Within a few days, however, I was advised
that there was a possibility oi CIA involvement in
some way.
It did seem to me possible that, because of the
involvement of. former CIA personnel, and because of
some of their apparent associations, the investigation
could lead to the uncovering of covert CIA operations
totally unrelated to the Watergate break-in.
In addition, by this time, the name of Mr.
Hunt had surfaced in connection with Watergate, and
I was alerted to the fact that he had previously been a
member of the special investigations unit in the White
House. Therefore, I was also concerned that the
Watergate investigation might well lead to an inquiry
into the activities of the special investigations unit
itself.
..to
or or �r�
� I also had to be deeply concerned with insuring
� that neither the covert operations of the CIA nor the
--op-er-a:tions of the special investigations unit should be
compromised. Therefore, I instructed Mr. Haldeman
and Mr. Ehrlichman to insure that the investigation of
the break-in not expose either an unrelated covert
� operation of the CIA or the activities of the White
House investigations unit--.and to see that this was
personally coordinated between General Walters, the
Deputy Director of the CIA, and Mr. Gray of the FBI.
4.1.
or n� Dor
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One of the matters to which the President was evidently referring was
explored by Senator Baker in his questioning of John Ehrlichman when
Ehrlichman appeared before the Select Committee on July 26, 1973.
Ehrlichman was questioned with. regard to missing paragraph five of
a memo from Egil Krogh and David Young to John Ehrlichman dated
August 11, 1971.1
This was the same matter which had been. brought to the attention of
the Minority staff in July of 1973 which resulted in a briefing of
Senator Ervin, Senator Baker, Sam Dash, and Fred Thompson by
White House Counsels Fred Buzhardt and Leonard Garment. The
. subject of that briefing is what is now referred to as the "Admiral
Moorer-Yeoman Radford Incident."
1
With regard to involvement of the CIA in the Watergate affair, it should
be noted that since June 17, 1972, there have been numerous newspaper
14%
articles pointing out the fact that many of those involved in the Water-
gate break-in were forMer CIA employees; that CIA.equipment was
used by Hunt, and other possible CIA links to Watergate.
V 13
In the September 14, 1973, issue of the National Review, Miles Copeland
wrote an article entitled "The Unmentionable Uses of a CIA", suggest-
ing that McCord led the Watergate burglars into a trap.
In the November, 1973, issue of Harper's Magazine, an article entitled
"The Cold War Comes Horne"3, by Andrew St. George, indicated
strongly that former CIA Director Helms had prior knowledge of the
Watergate break-in. As a result of the St*. George allegation, Senator
Baker asked Senator Symington and the Senate Armed Services Com-
mittee to conduct the inquiry into those allegations. It would appear
that no information relative to this Committee's mandate was developed
from the testimony adduced during the hearings before the Senate Armed
1See Public Testimony of John Ehrlichma.n dated July 26, 1973,
at 2702-2704.
National Review, September 14, 1973, "The Unmentionable
Uses of a CIA", at 996.
3Harper's Magazine, November, 1973, "The Cold War Comes
-ciome," at 82.
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Services Committee on the St. George matter. However, in the after-
math of the St. George inquiry, Senator Baker propounded a number
of questions to the CIA on November 8, 1973, one of which follows:
1.trkt.
7. QUESTION: On or after LL.1,z 17, 1972, did any
of the individuals associated with these break-ins in any
way communicate with any individual associated with CIA
to discuss the Watergate break-ins or the Ellsberg psy-
chiatrist office break-in, other than Mr. McCord who
wrote letters to CIA which are part of the Watergate hear-
ing record?
ANSWER: On 10 July 1972 an officer of a commercial
concern communicated to an employee of CIA information
which had come to his attention concerning the "Watergate
Five." The relationship of this informant and his company
to the Agency was and is classified. Since this information �
was hearsay, containecla repetition of then current published
speculation, and indicated that the informant had appeared
before the Grand Jury on the matter, no action was taken.
The employee's hand-written memorandum for the record
on this matter is contained in sensitive material which Agency
officers have made available for review, but not retention, by
the staffs of the four CIA Subcommittees as well as the staffs
of the Senate Select Committee on Presidential Campaign
Activities and the Federal Prosecutor. Aside from this, the
Agency had no communication of the type referred to in this
que stion.
. An examination of the aforementioned "sensitive material"4 revealed
:ore than was theretofore knowxbout the scope of the CIA's dealings
with Robert Bennett and the Mullen and Company and led to a further
antensification of the staff's investigative efforts in other. CIA. related
areas.
4This material was produced as a part of Volume IV of the docu-.
t:.0.Thts furnished to us by the
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The Mullen and Company has been used as a cover for foreign
agents since its incorporation in 1959.1 It served as a cover
an agent in Europe and an agent in the Far East at the time
of the Watergate break-in. 2
Hunt left the CIA in 1970 and joined Mullen and Company with
what founder Robert Mullen understood to be Director Helms'
3
blessing. Hunt's covert security clearance was extended by
the CIA4, he was witting of the Mullen cover5, -and on occasion
he undertook negotiations with the Agency with respect to that
cover--even after becoming employed at the White House
(according to Agency records).
lExecutive Session Testimony of Robert R. Mullen,
February 5, 1974, at 3.
2 � -
Executive Session Testimony of Robert F. Bennett, February 1,
1974, at 25-26; Executive Session Testimony ofDartin J. LukOskig
February 4, 1974, at 5.
3CIA Memorandum, undated, Subject: Wrap-Up of Agency's
Association with Robert R. Mullen and Company, found at Tab 3 of
CIA Supplemental Material, Volume III, at 3.; Executive Session Testi-
mony of Robert R. Mullen, supra note 1, at 8; Executive Session Testi-
mony of Robert F. Bennett, supra note 2, at 67.
A
`-{See 'Memorandum for Deputy DirectOr. for Plans,
October 14,-7970, Subject: E. Howard Hunf:---Utiliiation by Central
Cover Staff, found at Tab 16., CIA Supplemental Materials, Volume II.
5Id.; Executive Session Testimony of Robert R. Mullen, supra
note 1, at 9.
6Executive Session Testimony ofErhomas H. Karamessine2,
February 5, 1974, at 6-10; CIA Memorandum, undated, Subject: Wrap-
Tip of Agency's Association with Robert R. Mullen and Company, supra
note 3, at 2.
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Robert Bennet, ,vho is Senator Bennett's son; Joined Mullen and
Company and became its President in 1971. He was introduced
to the Mullen CIA case officer in April of that year. 7 Bennett
brought the Hughes Tool account with him to 1\4:011en. 8 CIA records
indicate that Agency consideration was given to utiliziricr lyiufl.en's
Hughes relationship to garner information of
cover purposes it-
3 and for 'LL
Bennett's accessibility. to the CIA has raised questions concerning
:)ossible Agency involvement in, or knowledge of, Bennett's acti-
vities in regard to Hunt/Liddy, to wit: Bennett suggested and
coordinated the DeMott interview regarding Chappaquidick;1.0 Bennett
coordinated the release of Dita Beard's statement from Denver, after
contacting Beard's attorneys at the suggestion of a Hughes executive;11
Bennett suggested that Greenspun's safe contained information of
interest to both Hughes and the CRP; Bennett asked for and received
7Executive Session Testimony ofElartin J. Lukoskg, supra
note 2; at 12,
8Executive Session Testimony of Robert F. Bennett, supra
note 2, at 132.
9SeeEiukoski]Memoranclum for Record, April 30, 1973,
Subject: Association of Robert R. Mullen and Company with the
glies Tool Company. This document is found at Tab 16, Supple-
mental CIA Material, Volume II.
10Executive Session Testimony of E. Howard Hunt, December 18,
1973, at 69-70; Executive Session Testimony of .Robert F. Bennett,
su-ora note 2, at 62-65.
1 lExecutive Session Testimony of Robert F. Bennett, supra 2
note 2, at 93-94.
(b)(3)
12Executive Session Testimony of E. Howard Hunt, supra note
z.:t 6-8; But see Executive Session Testimony of Robert F. Bennett, supra
note 2, at 79-84. Bennett indicates that Hunt suggested Bennett coordi-
nation with Hughes.
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�-�
Hunt a price estimate for bugging Clifford Irving for Hughes;
,;.,tt coordinated the employment of political spy Tom Gregory
int and discussed with Gregory the latter's refusal to proceed
burvin2; plans on or about ,Tune 16, 19'/Z;14 13ennett received a
from Hughes personnel for use on Mullen telephones; 15
:�,.7171ett and Liddy set up dummy committees as a conduit for Hughes
contributions;16 and Bennett served as .the _point of contact
Hunt and Liddy during the two weeks following the Watergate
Furthermore, Robert Oliver, Mullen's Washington
for Hughes Tool, is the father of R. Spencer Oliver, Jr. ,
,uhose telephone was tapped at the Democratic National Committee.
ennett met with the Olivers after the break-in to discuss, the bug-
� 18A
13
true nature of Bennett's relationship to the. CIA was not known to.
until late November of 1973 when, at Senator Baker's request,
thc CIA produced another volume of CIA documents. (Volume IV). The
following information was adduced from this volume.
� 13
Executive Session Testimony of E. Howard Hunt, supra note
10, at 72-73; Executive Session Testimony of Robert F. Bennett,
� :itipra note 2, at 121-124.
�
. 14Staff Interview of Thomas J. Gregory, September 1, 1973,
at 5; Executive Session Testimony of E. Howard Hunt, supra note
10, at 17; Executive Session Testimony of Robert F. Bennett, supra
note 2, at 69-75.
15Staff Interview of Linda Jones, September 6, 1973, at 3;
Executive Session Testimony of Robert F. 13ennett,� supra note 2,
at 140.
16Staff Interview of Linda Jones, supra note 15, at 9; See
Summarized Highlights of Linda Jone.s Interview, dated September
10, 1973.
�17Staff Interview of Linda Jones, supra note 15, at 8; Executive
Session Testimony of Robert F. Bennett, supra note 2, at 153 -15 7.
18Executive Session Testimony of Robert F. Bennett, supra
zlote 2, at 100-101.
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'
On July 10, 19'72, Bennett reported detailed knowledge of the
It
Watergate incident to his CIA case Officer. The case officer's
report of this meeting was ha.ndwritten19 and carried to Director
Helms on or before July 14, 1972,, in this form because of the
sensitivity of the information." revealed that Bennett had
established a "back door entry" to E. B. Williams, the attorney
for the DNC, in order to "kill off" revelations' of Agency affiliation
in the course of the DC lawsuit. He agreed to cheek with the
CIA prior to contacting Williams. 21 Our staff has confirmed that
Bennett did funnel information to Williams via attorney Hobart Taylor,
and that this information was more extensive than the information
Bennett had previously provided the Grand Jury 4 The CIA has
7-,(7
i paying one-half of Bennett's attorney fee for his Grand
Jury appearance) "if\
Although Bennett was supplying information to the CIA about many
aspects of the Watergate incident and was at that time serving as
liaison between Hunt and Liddy, there is .no indication that these
facts were disclosed to the FBI.
A
1LL.ukoski3 Memorandum for Record, July 10, 1972; Subject:
Meeting with Robert Foster Bennett and his comments concerning
E. Howard Hunt, Douglas Caddy, and the "Watergate Five" Incident
(sic), found in CIA Supplemental Material, Volume IV.
"Executive Session Testimony ofElartin J. Lukoski3 supra
note 2, at 2 0-2 1, 2 8-2 9.
21
ukoskigMemoranclum for Record, supra note 19, at 11-12.
22Robert F. Bennett, Memorandum for Record, dated
January 18, 1973, at 17; Executive Session Testimony of Robert F.
Bennett, supra note 2, at 129. See also Hobart Taylor Interview Report,
dated February 11, 1974.
23CIA Memorandum, undated, Subject: Wrap-Up of Agency's
Association with Robert R. Mullen and Company, supra note 3, at 5.
33
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The aforerrienti.....d July 10 report contains my ..% r iou s reference
to a liwii fiapir* 24 The report states that if the Mullen cover is
. I') '
terminated, the Watergate could not be used as an excuse. 2
spggests_that the Afgency might have to level with Mullen about the
..1"WTI flap:7r:
26 Nonetheless, a July 24, 1972 contact report shows ?3(6)
Ctria
\
....i.�
. ion,kcket :.' thz-tt the CIA convinced Robert Mullen of the need to withdraw its
Far East cover through an "agreed upon scenario" which included
. a falsified Watergate publicity crisis. 27 The Agency advises that
the 1,1W1i flap" has reference tc .3.3(0
,..,-
-,
Western Hemisphere operation� but has not explained any reason
to withhold such information from Mullen nor explained the relation-Sq
ship of same tip atergate developMents. 7.173777737767;171-7=`i n
Trn7=TZZMZ-Fy�C-Z;IMTCTiTiFse7i�cren�ce. The Assistant Deputy ?/)
Director of Plans has testified that he is very familiar with the
matter and that it had no unique effect on Mullen's cover. Z9 The
�
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