CURRENT TIME MAGAZINE INVESTIGATION OF ROBERT R. MULLEN & COMPANY CONNECTION WITH THE WATERGATE INCIDENT (W/ROUTING AND RECORD SHEET)

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 00660769
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: March 9, 2023
• Document Release Date: August 14, 2020
• Case Number: F-2016-01299
• Publication Date: March 1, 1973

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FROM:
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EXTENSION
NO.
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1 March 1973
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DATE
RECEIVED
FORWARDED
OFFICER'S
INITIALS
COM.VENTS (Number each comment to show from whom
to whcrn. Draw a line ocross column after each comment.)
Deputy Director for
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1 March 1973
MEMORANDUM FOR: Deputy Director for Plans
SUBJECT
Current Time Maazine Investigation of
Robert R. qt-Illen c-C-o-Mpany Connection
with the Watergate Incident
1. Mr. Robert R. Mullen, president of Robert R. Mullen
.C.; Company, telephoned CCS on the morning of 23 February to
advise us that Sandy Smith, a reporter from Time Magazine,
was in the Mullen office late on 27 February. gmiTh started
off by saying that "a source in the Justice Department" had
informed him that the company "is a front for CIA," Mr.
Mullen denied the allegation 'stoutly, said the company clients
are all legitimate and offered to .et Smith inspect the
company books. Mr. Mullen said that his intuition was that
Smith was on a fishing expedition and really had nothing to
substantiate his suspicions.
2. Smith had many questions concerning Howard Hunt,
such as how he secured Mullen employment and his salary.
Mullen told him the company paid him a salary initially and
later on a consultant basis when Hunt began to work for The
Committee to Re-elect The President, Smith wondered about
Hunts � source of income as there is no record in above
Committee's records of payments to Hunt, Mullen informed
Smith that one source of Hunt's income was a government
pension which, according to Hunt, was sizeable.
3. Mullen told Smith that Bob Bennett, partner of Mr.
Mullen who was on a business trip to California, really knew
most about Hunt's later period of Mullen employment. Mullen
could not show Smith records concerning Hunt as they are in
possession of the U. S. attorney,
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4. Bob Mullen again telephoned CCS at 1650 hours on
28 February 1973 as a follow up to his morning call, as
reported above.
5. Sandy Smith, the Time reporter, was in again in the
late afternoon and told Mr. Mialen that he had just seen,
through an FBI contact, a paper allegedly personally delivered
by a high official of CIA to Mr. Pat Gray, Acting Director of
the FBI, during the height of the Watergate flap and investi-
gation of Howard Hunt last summer.
6. It was evident that Smith at least knew of the
existence of such a document, but Mr. Mullen could only guess
that Smith had not seen it long enough to digest it, or it
said so little that Smith is trying to develop more information.
7. Mr. Mullen continued to deny being associated with
the Agency in any way except for the Cuban Freedom Committee,
which connection had been admitted by Bob Bennett in June to
the news media and U. S. attorney. Smith told Mullen, whom
he has known for years because of some association in New York,
that he is now in his "corner," but would be most unhappy if
he ascertains that Mullen is not leveling with him. Mullen
does not trust Smith and is certain Smith will write up what-
ever he develops. Presumably Time would publish the article.
8. Mullen would like to know what exactly we gave the
FBI so that he can tell. Smith what he already seemingly knows
from our memorandum to the FBI, or at least know how to best
cope with Smith. Mr. Mullen requested that our reply be given
him during the evening of 28 February.
9. Attached is a copy of the 21 June 1972 Memorandum for
the Acting Director of the FBI from the Office of Security .
concerning Robert R. Mullen Company. Possession of the content's
of this memorandum by Mr. Smith could be very damaging to the
Agency and the company. The last sentence of Para. 4 states
"Mr. Hunt was aware of present cover placements under
Robert R. Mullen and Company." Paragraph 5 relates that
Mullen company employees have been witting of the company's ties
with the Agency. Paragraph 7 states "In view of the extreme
sensitivity of this information concerning the current use of
Robert R. Mullen Company, it is requested that this report be
tightly controlled and not be disseminated outside your Bureau."
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10. C/CCS inc1 pho ccs case officer for
the Mullen Company, discussed the
above with Mr. William E. Colby and Mr. Cord Meyer, Jr. at
approximatelv 1800 hours on 23 February. It was agreed that
Mr. Colby would recommend to the DCI, Mr. Schlesinger, that
Messrs. Mullen and Bennett be allowed to read the 21 June �
1972 memorandum to the FBI and that they be asked to continue
to deny any allegation of association with the Agency, and
state in effect that there was no relationship, and if there
were, it, of course, would not be admitted. Mr. Schlesinger
.did endorse the proposed course of action.
11. Messrs. of
CCS met with Messrs. Ralph Hatry and Charles Beckman of NOCAD
at,0840 hours on I March to inform them of developments which
endanger who is under cover of the
company in It was decided that would
further discuss with Mr. Mullen and Mr. Bennett, who had
returned to his office, the Smith visits, allow them to read
the 21 June memorandum to the FBI and propose the immediate
return of to the United States and termination of
the cover arrangement, the last with the company as the
cover was terminated in August 1972.
12. and Mr. Mullen met near the Watergate
and proceeded to Mr. Mullen's apartment in The Watergate
through a rear entrance to The Watergate, Mr. Bennett joined
them shortly and both read the memorandum. It developed that
Mr. Bennett had been present during the second meeting with
Mr. Smith. Messrs. Bennett and Mullen both were of the opinion
that Smith had not seen the memorandum. They suggested that he
had only heard of its existence or had seen an FBI report which
summarized the memorandum and said only that the company had
provided cover for the Agency. They felt that if he had seen
the memorandum', he would not have re-visited them or would have
accused them on the rather specific information contained in ,
the memorandum. They said they would continue to deny any
association with the Agency other than the already acknowledged
relationship with the Cuban Freedom Committee.
13. They related that they told Smith he was beating a
dead horse and that the Washington. Star, Washington Post and
Los Angeles Times had already invested and conclUaed that
'Ehe RTAlen Company was not involved in the Watergate affair or
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the allegation that the CIA had instigated the Watergate Affair.
It was an intriguing theory which just died. .Mr. Bennett said
that he recently spent four hours in Los Angeles. being inter-
viewed by a Newsweek reporter and had convinced him that the
Mullen Company was not involved with the Watergate Affair. Mr.
Bennett rather proudly related that he is responsible for the
article "Whispers about Colson" in the 5 March issue of Newsweek.
Mr. Bennett does not believe the company will be bothered muchh
more by the news media which is concluding that "the company is
clean and has gotten a bum rap while the real culprits are
'getting scot free." Mr. Bennett said also that he has been
feeding stories to Bob Woodward of the Washington Post with the
the understanding that there be no attribution to Bennett.
Woodwood is suitably grateful for the fine stories and by-lines
which he gets and protects Bennett (and the Mullen Company).
Typical is the article "Hunt Tried to Recruit Agent to Probe
Senator Kennedy's Life" on page Al6 of the Saturday, February
10, 1973, Washington Post. Mr. Bennet- .- -d the 12 February
1973 meeting among hiliTe-Tf, Mdllen and when he stated his
opinion that the Ervin Committee investigating the Watergate
incident would not involve the company. He said that, if
necessary, he could have his father, Senator Bennett of Utah,
intercede with Senator Ervin. His conclusion then was that he
could handle the Ervin Committee if the Agency can handle (W(1)
Howard. Hunt, ODA
14. .Mr. Bennett reported that he is well acquainted with
a Charlotte, N. C. attorney named McConnell to whom Senator
Ervin offered the position of Chief Investigator of the Con-
gressional Committee investigating the Watergate incident. Mr.
McConnell, according to Bennett, declined the offer because he
is a millionaire in his own right and doesn't need to put up
with all the grief associated with such a position. Mr. Bennett
said he asked McConnell to inform Senator Ervin that Mullen,
Bennett and the company are 100% clean of any involvement in
the Watergate. Bennett is certain that Senator Ervin has no
desire for revelation of legitimate arrangements or to harm the
Agency and would avoid questions concerning our overseas cover
placements. Mr. McConnell subsequently told Bennett that he and
Senator Ervin were the only passengers on a private plane
recently and he discussed Bennett, et al, as requested by
Bennett. Mr. McConnell believes Senator Ervin accepted his
comments and will not attempt to .furthLr.involve the Mullen
Company people. Bennett believes he and his Agency affiliations
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will not be raised again. He has the Ervin Committee shut off'
and feels the Agency has the responsibility to persuade Howard
Hunt to avoid revealing what he knows of the history of cover
arrangements with the company. Bennett and Mullen further (W(1)
suggested that the Agency "plug the Icak" in the FBI and/or (b)(3)
Department of Justice.
15. At this time the Agency proposal to bring
back PCS prior to 10 March with the legend that has
become disenchanted with the company, does not like the change
in ownership from Mullen to Bennett, and has several job pro-
posals he wishes to pursue was then set forth. They said that
on the contrary Bennett and get along very well and
is deeply involved in a Bennett project described as
the ART FUND which purchases and sells paintings and works of
art. Bennett said that and his wife persuaded him
to permit them to invest personal funds in the project and that
is devoting considerable time to it. It would do
Bennett and the company serious financial damage if (WO)
were not permitted to continue. It is especially important
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that he be at the Art Show in Denmark from 5.na-)r to 15 June
1973.
16. They proposed that they request to return
next week for consultation. The �company has lost the Morman
� Church account to which cicsvnted some time, and new
accounts are being acquired, could be ,kept away
from the D. C. area by immediately assigning him to prepare
. the SUMMA Summit Conference in late April in Las Vegas. Summa
consists of the top executives of the Howard Hughes companies
and is the successor in the Huci,hes empire to the Hughes Tool
Company, which was sold,. with his extensive overseas
experience, might also be a speaker. The Summa Conference will
be a "dry run" for similar conferences which the Mullen Company
is planning to do in representative West Coast cities to
acquaint top' West Coast executives with matters of interest such
as pending legislation, overseas competition and the like. mo)
Bennett believes that if May 1 passes without any serious
compromise, then nothing will happen, could then
handle the Art Show in Denmark from 1,g-a o 15 June and then
to , or if we prefer to where the cony
has business interests sufficient to support
Mullen also recalled our proposal of two years ago for
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to an cxerimen
in where
been Lrumpeted" among their clients, business prospects and
in their literature. It would hurt badly and cost lots of .
money to end this one.
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Mullen and Bennett took the position that while it was easy
to ascribe the opening and closing of the office
be difficult to explain closing
presence as a vice president "has
17.
continuing
should be unable
Mullen said that
such as the abiliLy
relations field, but
asked whether
-cached the possibility of the company
as a legitimate employee' if the Agency
to o ate an appropriate assignment for him.
does not possess qualifications
o wri e, which are requisite in the public
is an excellent businessman.
might assist in servicing the Hughes
account. Bennett responded that the Hughes account cannot
stand further expenses and some new clients would need to be
obtained to support the legitimate employment of
The proposal was not rejected, but it was evident that the
company prefers the current arrangement which is supported
almost entirely by the Agency. Mullen and Bennett both like
and admire and might employ him if employ-
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rent with t e Agency terminates. It was learned that I
discussed with Mullen the possibility of resigning
from the Agency to accept legitimate Mullen Company employment
if the company needs so warranted.
18. Concerning the (mployment of Howard Hunt in May 19709
Bennett said smugly that he wasn't responsible and Mullen
wishes now that he had not hired him. He recalled that as head
of the Marshall Plan some 25 years ago. he became acauaintcd
with Hunt.
ice ot Personnel,approacicd Mullen concerning
qualitications needed by Hunt for public relations work and
possible leads for employment for Hunt who was retiring from
the Agency. Mullen stated that "twisted my arm pretty
hard" and he hired Hunt. Mullen believed that DCI, Helms,
wished him to employ Hunt, especially after receipt of a
splendid letter of recommendation of Hunt from Mr. Helms who.
later personally expressed his appreciation to Mr. Mullen for
hiring Hunt. Mr. Mullen said he honestly believed, as a .result
of the pressure exerted by that the Agency wished him
to resolve problems. attendant to liunt's retirement by hirinomi)
Hunt (b)(3)
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19. The meeting concluded with Bennett stating that if
cover employment with Mullen is terminated before
the mid-June ending of the Art Show in Denmark it will hurt
Bennett badly and cost him lots of money. Both then commented
that they were "not letting the Agency down. Don't you let'us
down."
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.Chief, Central Cover Staff
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