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President - Wright Patman Investigation Background (3)
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27581251
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President - Wright Patman Investigation Background (3)
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Philip W. Buchen Files
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Executive-Legislative relations
Watergate Affair, 1972-1974
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The original documents are located in Box 55, folder "President - Wright Patman Investigation Background (3)" of the Philip Buchen Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 55 of the Philip Buchen Files at the Gerald R. Ford Presidential Library Datos of Dean's conversations with Cook: Sopt. 6,7, 11, of 14; Oct. 2,6, 11, of 12. Minority loader's lotter: Sept. 28 GERALO F. FORD WASHINGTON OFFICE: UNITY BROWN 404 CANNON HOUSE OFFICE BUILDING 3D DISTRICT, MICHIGAN WASHINGTON, D.C. 20515 TELEPHONE: (202) 225-5011 COMMITTEE ON Congress of the United States DISTRICT OFFICES BANKING AND CURRENCY ROOM 2-1-36 FEDERAL CENTER 74 NORTH WASHINGTON House of Representatives BATTLE CREEK, MICHIGAN 49017 TELEPHONE: (616) 962-1551 COMMITTEE ON GOVERNMENT OPERATIONS Mashington, D.C. 20515 ROOM 112 FEDERAL BUILDING 410 W. MICHIGAN AVENUE KALAMAZOO, MICHIGAN 49006 July 9, 1973 TELEPHONE: (616) 381-8290 JOINT COMMITTEE ON (MON.-WED.-FRI.) DEFENSE PRODUCTION The Honorable Sam J. Ervin, Jr. Chairman Select Committee on Presidential Campaign Activities Senate Office Building Washington, D. C. Dear Mr. Chairman: The attached statement is submitted as my response and rebuttal to the allegations made by Mr. John Dean before your Committee which involved me in the subject of your hearings. It is in the format of testimony since I had hoped your Committee would provide me with an opportunity to present the statement personally, my requests in this regard to date having been denied. Since the inter-mixing of my testimony with that of the other witnesses you intend to call would be most inappropriate, I transmit for filing this sworn statement in lieu of the giving of testimony at some future date, although I will be glad to submit to any interrogation or cross-examination you or the Committee might deem appropriate at any time. Respectfully submitted, GARRY BROWN Enclosures LIBERAY GERALD 1. 1040 Mr. Chairman and Members of the Committee: At the outset, let me express my deep appreciation to you, Mr. Chairman, and the Committee for providing me with this opportunity to respond in kind to the allegations made by Mr. Dean in his statement and earlier presentation to this Committee. To say that I was somewhat dumbfounded to learn of the allegations made by Mr. Dean is a gross understatement since my participation in the bipartisan efiort by members of the House Banking and Currency Committee, which resulted in the denial of the granting of subpoena authority to the Chairman of our Committee, was in no way connected with the so-called "cover-up" activities in which Mr. Dean has testified he participated. Perhaps it would be best for me to provide the Committee with a chronological statement of what occurred in this regard on the House side, as best I can recall it, and then provide the Committee with a particularized response to Mr. Dean's several allegations. Assuming the concurrence of the Committee in this proposed format of my testimony, let me proceed with the chronological statement of activities on the House side, the period of time over which these activities occurred having been late August of 1972 to October 3, 1972, the latter date being the date of the meeting of the House Banking and Currency Committee at which, by a vote of 15 to 20, Chairman Patman's request for subpoena authority was denied. While back in Michigan fulfilling commitments during the August Recess of the Congress, on either the late afternoon of August 30 or the morning of August 31, 1972, I heard on my car radio that the Banking and Currency Committee was interviewing Mr. Maurice Stans, the Chairman of the Finance Committee to Re-Elect the President, with respect to the handling of campaign contributions since there appeared to be a connection between the handling of some of such funds and the Watergate burglary. Inasmuch as I had not been notified by my office in Washington, nor had I received any notice in Michigan, that the Committee was meeting for this purpose, I LIBRARY GERALD FORD - 2 - immediately got in touch with my Washington office and determined that Chairman Patman had not called a meeting, nor had he notified my office of the interviews with Stans. I then contacted the Banking and Currency Committee staff to determine the facts with respect to the news broadcast I had heard and determined that no Committee meeting had been called, but rather that certain members of the Banking and Currency Committee staff, at the direction of the Chairman, had individually interviewed Stans. I was unable to ascertain at that time from the staff the justification therefor or the reasons why Committee members had not been advised of Chairman Patman's initiation of such investigation by staff members. In view of the media attention provoked, it appeared to me Patman's action was prompted by political considerations, so I again called my Washington office and asked my legislative assistant to carefully examine the Rules of the House and the Rules of the Banking and Currency Committee to determine by what authority Patman had initiated such investigation without first seeking the authority of the Committee and by what authority he could do so without even notifying Committee members. As a result of such research by my legislative aide, on Thursday, August 31, 1972 I dictated a letter to Chairman Patman citing the Rules of the House and the Committee and indicating my displeasure over the fact that he had initiated such investigation without seeking the concurrence of the Committee or even notifying Committee members. This Ietter is attached as Exhibit No. 1. At this juncture, I should point out that to the best of my recollection, there had been no Committee discussion of our Committee's jurisdiction over, or involvement in, an investigation of the Re-Elect Committee's handling of contributions or their possible involvement in the financing of the Watergate burglary. In short, the Committee staff investigation hit me as a complete surprise. It being necessary for me to attend the fall Republican State Convention in Detroit September 1 and 2, I did not return to Washington until late Monday, Labor Day, September 4. Inasmuch as the only information I had been able to develop regarding the GERALB FORD LIBRARY content of the interviews by Patman's staff members of Stans was from a Republican staff member who had been present during only a portion of such interviews, I contacted Mr. Stans to attempt to determine the particulars about the staff inquiry, whether or not a transcript had been made of such interviews or any other record of the - 3 - discussions in order that I might be apprised of the substance of such interviews to the same extent as were the staff members and Mr. Patman. In the course of my discussion of the matter telephonically with Mr. Stans, I requested an opportunity to discuss the matter personally with him and arranged to see him on the morning of September 6. In view of Mr. Dean's statements on pages 103 and 104 to the effect that he and others associated with the White House were aware of and concerned about the Banking and Currency staff investigation as early as mid-August, I should point out that my first contact of any kind with anyone from the White House or the Finance Committee to Re-Elect the President was this call to Mr. Stans on September 5, 1972. (1) Also, in view of Mr. Dean's association of the Banking and Currency Committee with what he alleges were cover-up discussions going on at this time, it is essential to keep in mind the limited scope of the Patman investigation. In his letter to me, received September 5, responding to my letter of August 31, 1972, Chairman Patman said that his interest in an investigation was prompted by a letter he had received from a Committee member who urged either Patman or the International Finance Subcommittee Chairman to look into possible violations of the Foreign Bank Secrecy Act by the Committee to Re-Elect the President in connection with the transfer of some of its funds through Mexico. In addition, and subsequently, Patman brought into the scope of his interest the circumstances surrounding a $25,000 contribution to the Committee to Re-Elect the President by one who was interested in a national bank charter application which was pending. In short, by Patman's own statements, he was justifying jurisdiction of the Banking and Currency Committee over the investigation by limiting its scope to the use of banks in the financial transactions of the Committee to Re-Elect the President, the bank charter matter, and to the Watergate burglary by virtue of the surfacing of funds in the bank account of Mr. Barker, one of those who had been arrested for participation in such burglary. Not satisfied with Patman's response of September 5, 1972, I immediately drafted a letter to him, which letter was co-signed by several of my Republican colleagues on the Committee, in which we demanded that Patman call a meeting of (1) At no time, before, during, and since the period covered by this chronology, have I discussed the Committee's action or the Watergate matter with the President, Mr. Haldeman, Mr. Erlichman, Mr. Dean, Mr. Mitchell, Mr. Colson, or any similar person within the inner-group mentioned by Mr. Dean. GERMLO FORD LIBRARY - 4 - the Committee to discuss the whole matter. Our letter of September 5, 1972 is attached as Exhibit No. 2. In view of Patman's rationale for conducting the investigation, in my interview with Mr. Stans on September 6, I attempted to ascertain the true facts from him concerning the handling of campaign contributions, the alleged Mexican "laundering" of such funds, and their apparent ultimate deposit in Barker's bank account. Mr. Stans informed me he did not know how or why the funds went to Mexico and ended up in Barker's account, stating that Mr. Gordon Liddy, the general counsel for the Committee, had been the one who made the decisions regarding how contributions were reported, handled, etc. under the new campaign expenditure law. Since my inquiry involved the legality of the handling of such funds, it was agreed I should talk with Mr. Kenneth Parkinson, who was the new legal counsel for the Finance Committee to Re-Elect the President, having succeeded Mr. Liddy, whose services had been terminated. I met with Mr. Stans personally only this one time, but I may have talked with him three or four times on the phone. During the course of these conversations, I am quite sure I suggested that it might be better for Mr. Stans to testify than to give Patman the opportunity to publicize and take political advantage of Stans' non-appearance, it being the position of most Republican Committee members that Patman's interest in an investigation was more political than anything else. I discussed the application of the Bank Secrecy Act, the campaign expenditure law, and other aspects of the matter telephonically with Mr. Parkinson several times and met with him on one occasion of which I am certain and possibly a second time very briefly, although I cannot specifically recall a second occasion. During this time, I had asked my legislative assistant, who is an attorney and a former law clerk for a Federal Court of Appeals Judge, to brief for me the question of the propriety of the appearance of Mr. Stans and others before our Committee. In the course of this research done by both my legislative assistant and myself, it became apparent that such an appearance could prejudice the rights of those who might be indicted as a result of the grand jury proceedings that were then in progress. Appreciation of this problem prompted me to write to both the GERALE paro LIBRARY - 5 - Attorney General and Mr. Stans requesting the opinion of the Attorney General with respect to the propriety of Mr. Stan's appearance as well as the opinion of Mr. Stans' attorney concerning his own position on the appropriateness of such appearance. These letters are attached as Exhibits No. 3 and 4, respectively. At the time of the writing of these letters, Mr. Stans had not, to my knowledge, decided whether or not he would voluntarily appear before the Committee. It is this letter of September 8 to the Attorney General which Mr. Dean has said in his statement, " was, in fact, drafted by Parkinson for Congressman Brown." I unequivocally deny this charge. The letter to the Attorney General was dictated by me to my secretary and is my work product in every respect. It is my best recollection that from the conversations I had with Mr. Stans and Mr. Parkinson up to this point it appeared to me no decision had been made as to whether or not Mr. Stans would appear. The decision to write such letters was wholly my own and stemmed from my concern about the propriety of his appearance regardless of what his decision might be, such concern having been prompted by the limited research done by my legislative aide and myself to this time. It would bE asinine for me to say that in the course of my discussions of the matter with Stans and Parkinson I did not mention the concern I felt about the legal ramifications of Mr. Stans' appearance before the Committee and of my belief that the legal opinions of those most closely involved, namely, the Attorney General and Stans, should be obtained. In any such discussions, however, it was always a matter of my apprising Stans and Parkinson of what I proposed to do, rather than receipt by me of suggestions, requests, urgings, etc. from them. Although I received no written response from the Attorney General to my letter of September 8, on September 12 Ralph Erickson, the Deputy Attorney General, telephoned my office and talked with a member of my staff and advised that he was calling in response to my letter of September 8 and indicated that the Attorney General would be happy to talk with me about the matter but did not intend to respond in writing, suggesting that the questions I had asked were now moot because in the interim Mr. Stans had notified the Committee that he was declining the invitation to testify. LIBRARY GERALD ? FORD - 6 - During this period of time, the Banking and Currency Committee, although considering other legislation, had been embroiled in the controversy about the conduct of hearings by the Committee into the Patman charges, the scope of which I have already described. But none of the activities regarding political espionage, bugging, cover-up, etc. which have now surfaced and which are now being discussed were known at the time the Banking and Currency Committee was contemplating its hearings and it must also be kept in mind that Patman's effort to investigate the matter of the laundered funds and Barker's involvement was analyzed by most of us at that time as being blatantly political in view of the up-coming election. Chairman Patman finally did discuss the matter with the Committee and, although objection was voiced by many of us, he scheduled a meeting of the Committee for September 14 to receive the testimony of Stans and Phillip S. Hughes, Director of the Office of Federal Elections, General Accounting Office. This was the meeting at which Stans declined to appear. Because Stans had failed to appear voluntarily, Chairman Patman notified the Committee on September 25, 1972 that he intended to seek the authority of the Committee to issue subpoenas for Stans and several others at a meeting of the Committee to be held October 3. When it became certain that the Chairman would seek subpoena authority, my earlier concern about the propriety of such appearance was renewed and intensified since in the meantime the legal research done by me and my office had clearly established the danger of conducting a Congressional hearing when criminal proceedings were pending regarding the same matter. As a result, I again wrote to the Attorney General on September 26, 1972, pointing out to him that although the questions I had raised in my September 8 letter might have become moot after Stans had declined to voluntarily testify, Patman's plans to seek subpoena authority made my questions and concerns very real once again. This letter of September 26 is attached as Exhibit No. 5. Despite my insistence in my letter to the Attorney General of September 26, 1972 for an opinion to be expressed, it wasn't until the late afternoon of October 2 that. I learned Mr. Henry Petersen, Assistant Attorney General, had replied to my letter of September 26, not to me, but to Patman. In fact, Patman had received the response GERALD FORD THERE - 7 - from Petersen before I knew that a response had been provided, since I was not given a copy until I requested the same. This letter from Petersen is attached as Exhibit No. 6 and is the same as Dean's Exhibit No. 21. In this regard, I felt at the time that the Department of Justice and the Attorney General's Office was being most uncooperative and, in fact, was taking a rather untenable position of not wanting to get involved when my research had clearly satisfied me that the success of their prosecutive efforts of those who had been indicted by the grand jury could be seriously jeopardized by public hearings of the Banking and Currency Committee under the law applicable thereto, especially the holding in the Delaney case. It having been my position then, and it continues to be my position, as well as that of Archibald Cox, the Special Prosecutor, that public hearings in prejudicing the rights of those who have been accused, necessarily also seriously jeopardize the successful prosecution of these individuals. In any case, the Committee met on October 3 and, as is well known, voted 20-15 against authorizing the Chairman to issue the subpoenas he had requested. (2) Although it is of little pertinence to this chronology, I wish to add that consistent with my many-times stated position regarding the Banking and Currency Committee's investigation of this matter, to wit, that such investigation should await completion of criminal proceedings, I wrote to Chairman Patman in early January of this year urging him to designate a staff member or hire outside counsel to monitor the criminal trials of the "Watergate Seven" so that we might be kept current on the proceedings of those trials so we would be prepared to conduct a Committee investigation upon completion of the criminal proceedings. Needless to say, the Chairman declined to grant my request and in a reply expressing many reasons, closed the door upon any investigation by our Committee. From the foregoing, it is obvious that Mr. Dean, in his testimony before the Senate Select Committee, either has stated things to be true which he does not know to be true or has engaged in absolute falsehoods. More particularly, I recite the following: (References are to the statement presented to your Committee on June 25, 1973.) On page 104, Mr. Dean states: "At some point in time during these 2) In view of Mr. Dean's testimony about the proposed Patman witness list, I should add at this cint that I attempted to determine who Patman wanted to subpoena, but it wasn't until I received uch list, hand-delivered at 5:05 P.M. on 10/2/72, the evening before the 10/3/72 meeting, that I r anyone else, to my knowledge, knew who Patman intended to subpoena and call as witnesses. FORD - 8 - investigations Mr. Parkinson was put in touch with Congressman Gary (sic) Brown who was a member of the Banking and Currency Committee." The fact is, Mr. Parkinson was not put in touch with me, I requested an opportunity to talk to Mr. Parkinson during my original contact with Mr. Stans when he could not explain to me the several legal aspects of the handling of funds by Mr. Liddy, the legal interpretation given to the campaign expenditure law as it applied to contributions made to the Committee to Re-Elect the President before and after April 7, 1972, and other aspects of the staff interrogation of Mr. Stans. Also on page 104, Mr. Dean states: "To the best of my recollection this may have resulted from discussions between members of the White House Congressional Relations staff with the Republican members of the Banking and Currency Committee to determine who would be most helpful on the Committee and Brown indicated his willingness to assist." (emphasis added) The fact is, I recall no conversation with anyone which could be interpreted as my indicating a 'willingness to assist." This is especially true if one interprets, as he must, Mr. Dean's word "assist" as being willingness to assist in the White House efforts to block the Patman Committee hearings for the second reason he states on page 103; that being, and I quote ... "and second, they just might stumble into something that would start unraveling the cover-up. (3) It should be pointed out that as of even September 8, 1972, or for that matter as late as October 3, 1972, to my recollection, there had been no public suggestion that a "cover-up" was in progress. The fact that I opposed such hearings at that time because I was satisfied the law made inappropriate and undesirable the conduct of hearings of our Committee while the criminal proceedings were pending and, in addition, thought Patman's desire for such hearings was purely political, while for other reasons the White House may have opposed such hearings, may make our goal similar, namely, the blocking of the hearings, but it is totally improper to attribute the same motivation, as Mr. Dean has done. Again on page 104, Mr. Dean states: "On September 8th Congressman Brown sent a letter to the Attorney General regarding the forthcoming appearance of Secretary Stans and others before the Patman Committee. I have submitted to the Committee a copy of this letter (Exhibit No. 18), which was, in facty LIBRARY GERALD FORD drafted by Parkinson for Congressman Brown." (emphasis adõed) (3) Although Dean cites no time frame for this statement, it should be remembered I independently and aggressively had commenced opposing the Patman action as early as 8/31/72 and had no knowledge of what Dean says were on-going conversations within his group on the subject. - 9 - The fact is, this letter was not drafted by Parkinson for me, nor to the best of my recollection does my letter to the Attorney General contain any input from Parkinson, although, of course, as I have already indicated I had apprised Stans and Parkinson of my plans to solicit the opinion of the Attorney General. On this same page 104, Dean again refers to "Parkinson's drafting the letter for Congressman Brown," which is a repetition of the previous erroneous statement. I wish to advise the Committee with respect to this statement that upon learning of this charge made by Mr. Dean, I knew it to be so completely erronèous that I sought an explanation for the making of same by Mr. Dean. I attempted to contact Mr. Parkinson to determine whether or not he, or anyone else to his knowledge, might have suggested or stated to Mr. Dean that he, Parkinson, had drafted such letter. Mr. Parkinson was not immediately available and I was unable to talk with him until the late afternoon of Tuesday, June 26, 1973, Dean's statement having been made, as you will recall, in his testimony before this Committee on June 25, 1973. In this telephone conversation with Mr. Parkinson on June 26, Mr. Parkinson unequivocally denied that he had drafted such letter or that he, or anyone else to his knowledge, had advised Mr. Dean that such letter had been drafted by him, Parkinson. However, in the course of my attempting to learn from Parkinson how Dean could possibly have made this statement, Parkinson recalled that he had prepared a draft of a letter at the request of Mr. Dean which he, Parkinson, understood was to be furnished to the Attorney General as a proposed response by the Attorney General to my letter of September 8, 1972 (Dean's Exhibit No. 18, my Exhibit No. 3). and it requested a copy of this proposed draft which was prepared by Mr. Parkinson for Mr. DeanAis attached hereto as Exhibit No. 7. It is Mr. Parkinson's further recollection that subsequent to his preparation of this draft, Mr. Dean took the same for what Mr. Parkinson understood to be a further review or revision by Mr. Dean. Of course, this proposed draft was apparently never used as intended since no response was made at that time to my letter of September 8, 1972. Although it is relatively insignificant, on page 105 of his testimony, Dean LIBRARY GERALD P. FORD - 10 states that no response was sent by the Justice Department to my letter of September 8 prior to the scheduled appearance of Mr. Stans on September 14; whereas, although Dean's discussion of this matter on page 105 may be substantially accurate, I did receive a telephonic response to my letter of September 8 from Deputy Attorney General Erickson in which, as I have above pointed out, he indicated no written response would be provided and that he felt the questions I had raised in my letter of September 8 were moot because of Stan's decision not to appear before the Committee voluntarily. On page 108, Mr. Dean states: "I began receiving increasing pressure from Mitchell, Stans, Parkinson and others to get the Justice Department to respond to the September 8th letter of Congressman Brown as a vehicle that Congressman Brown could use in persuading others not to vote in favor of the subpoenas. Congressman Brown felt that with this document in hand he would give the Republicans and others something to hang their vote on." (emphasis added) The fact is, I know of no basis for these statements since my only purpose in writing to the Attorney General on both occasions, that is, September 8 and September 26, was to attempt to get the Attorney General to recognize the law for what I knew it to be and to appreciate the prosecutorial problems which would be created by public hearings of the Committee. I especially know of no basis in fact for the underlined portion of the foregoing quote from Dean's statement, since I cannot recall having expressed the same to anyone. However, there can be little question but what such a letter would have a favorable impact upon other members. At the bottom of page 108 and on page 109 of Dean's statement he states that much effort was put forth by many people, including Mr. Timmons, to persuade members of the Committee to vote against the hearings. I can only speak for this member of the Committee in this regard, but I do not recall receiving any urging from anyone at the White House to cast my vote against such hearings. In fact, I am very certain I had no significant contact from anyone associated with the Administration or the White House regarding the hearings other than the contacts I have already discussed with Mr. Stans and Mr. Parkinson. To the best of my recollection, my only contacts with White House personnel were insignificant contacts I had in the course of normal legislative business with Dick Cook, the White House liaison agent for the House of Representatives, who, BERALD FORD LIBRAR, - 11 - rather than suggesting or urging me to take any course of action, merely inquired of me as to how things were going and whether or not I thought those of us who opposed the hearings would be successful in our opposition. In my discussions with other members of the Committee at that time and since, I have yet to find one who indicated that he or she was pressured in any way to vote as he or she did. In conclusion, I wish to thank you, Mr. Chairman, and the members of the Committee for your patience in permitting me to provide this probably unnecessarily lengthy statement. My purpose in doing so was to establish for the record not only the absence of culpability on my part, but the absence of culpability on the part of the other members of the House Committee on Banking and Currency in opposing the Patman investigation, to the extent that I have any knowledge of other members' actions. I hope I have satisfied the Committee and the listening, viewing, and reading audience that what Mr. Dean has concluded was causally related action by the majority of our Committee to what he was doing at the White House, has no basis in fact and should not be so presumed. If opposition to action proposed by one's colleagues, when that opposition is based on principle and proper political motivation, cannot be voiced without such opposition being interpreted as culpable conduct and obstruction of justice, then we certainly have reached a sorry state of affairs in our political and legislative system. If I have done nothing else, I trust that I have at least somewhat dispelled the "guilt by association" implicit in Mr. Dean's testimony by his linking of the House Banking and Currency Committee action with the whole gamut of culpable conduct about which he has testified. I will be glad to answer any questions the members of the Committee might care to pose. Thank you. BERRLD FORD LIBRARY Nomination of Gerald R. Ford of Michigan to be Vice President of the United States Nov.5 Hearings before the Committee on Rules and Administration, U. S. Senate, November 1973. 12S The CHAIRMAN. Senator Pell? Senator PELL. In the interest of time, I will limit myself to one question. I would like to return for a moment to this question of in- flation and the burdens imposed. particularly. on our older people. The bill that passed the Senate and is in the House now calls for, I think. a 7-percent increase. Before it passed the House, would you urge the President to sign this bill or do you feel that— Mr. For:n. I believe that if you are going to increase the benefits. you have to, in all honesty. find additional revenue. Now, I have not had a chance to study whether this added benefit payment that is pro- vided in the Senate version requires additional revenue, whether we have to increase the ceiling so that you are taxing more of the income. or whether me have to increase the rates. But if we have not provided in such legislation additional revenues to keep the balance in the social security trust funds-if The have not provided that revenue- I would urge that it be vetoed. I hope that we can provide enough revenue because, in my oninion. certainly the people in the older age brackets. because of inflation. need the help. And I want to help them. But I do not want to destroy the social security concept by not providing sufficient revenues to finance these additional benefits. Senator PELL. Thank you very much. The CHAIRMAN. Senator Bvrd? Senator BYED. Representative Ford. will you relate to the commit- tee your role. if any. in the blocking of an investigation by the House Banking and Currency Committee into the Watergate breakin as pin- posed by Chairman Wright Patman in October of 1972? Mr. Form. Senator Byrd. I do not have the full details here, but I can give you the salient points. Chairman Patman had proposed sometime in October of 1972 that his committee. the Committee on Banking and Currency in the House. undertake an investigation of certain American banks in trading or handling accounts between an American bank and a foreign bank. And Chairman Patman wanted subpena authority to carry out this investigation. A number of members of that committee on the Republican side and several on the Democratic side were opposed to giving that authority to Mr. Patman. A number of our Republicans on that committee came to me and said. "Jerry. ITC think you ought to call a meeting SO that πe on our side of the aisle could bring the leadership un to date. and perhaps the leadership would give some counsel to the Republican members of the Committee on Banking and Currency." So as the Republican leader of the House. upon this request. I called a meeting. iTe met with the Republican members of that committee on one or two occasions. They brought us up to date. Tie talked about That the policy onght to be in the committee. but there no Republican Party decision made. The action taken by the Repub licans nins. T think. five Democrats was, I think, to deny Chairman Patman that nower of subpena. Senator BYRD. You may be aware that John Dean testified to the Senate Watergate Committee on June 25 of this year that House Re publican leaders "acted at the request of the White House it. block that investigation." ITere you in contact with anyone at the White House is FORD GERALD LIBRARY 129 during the period of August through October 1972 concerning the Parman committee's possible investigation of the Watergate breakin? Mr. Ford. Not to my best recollection. The best and, I think most authoritative answer to this question is one that Representative Jerry Brown of the Third District of Michigan submitted to the Ervin mittee. (ongressman Brown was very much involved as a member of the Committee on Banking and Currency, and his name was much more closely identified with this problem than was mine. As a result, he prepared the very detailed statements which I under- sood were put in the record of the Ervin committee. He was never called to testify. But I would be glad to submit that statement by Congressman Brown because it goes into this whole question in very great depth. I think it might be helpful to the part of this record if the chairman of the committee would so permit. The CHAIRMAN. You may supply them for the record. Mr. FORD. I will, sir. [The statement referred to follows:] STATEMENT OF How. GARRY E. BROWN, A MEMBER OF CONGRESS FROM THE STATE OF MICHIGAN, SUBMITTED TO THE SELECT COMMITTEE ON PRESIDENTIAL CAM- PAIGN ACTIVITIES Mr. Chairman and Members of the Committee, at the outset, let me express my deep appreciation to you, Mr. Chairman, and the Committee for providing me with this opportunity to respond in kind to the allegations made by Mr. Dean in his statement and earlier presentation to this Committee. To say that I was some- what dumbfounded to learn of the allegations made by Mr. Dean is a gross under- statement since my participation in the bipartisan effort by members of the House Banking and Currency Committee, which resulted in the denial of the granting of subpoena authority to the Chairman of our Committee. was in no way connected with the so-called "cover-up" activities in which Mr. Dean has testified he garticipated. Perhaps it would be best for me to provide the Committee with a chronological statement of what occurred in this regard on the House side, as best I can recall it, and then provide the Committee with a particularized response to Mr. Dean's several allegations. Assuming the concurrence of the Committee in this proposed format of my testi- mony. let me proceed with the chronological statement of activities on the House side, the period of time over which these activities occurred having been late August of 1972 to October 3, 1972. the latter date being the date of the meeting of the House Banking and Currency Committee at which br 2 vote of 15 to 20, Chairman Patman's request for subpoena authority was denied. While back in Michigan fulfilling commitments during the August Recess of the Congress, on either the late afternoon of August 30 or the morning of 10- gust 31, 1972, I heard on my car radio that the Banking and Currency Committee was interviewing Mr. Maurice Stans, the Chairman of the Finance Committee to Re-Elect the President, with respect to the handling of campaign contributions since there appeared to be a connection between the handling of some of such funds and the Watergate burglary. Inasmuch as I had not been notified by my office in Washington. nor had I received any notice in Michigan, that the Committee was meeting for this pur- post. I immediately got in touch with my Washington office and determined that Chairman Patman had not called a meeting. nor had be notified my office of the interviews with Stans. I then contacted the Banking and Currency Committee staff to determine the facts with respect to the news I had heard and determined that no Committee meeting had been called. but rather that extain members of the Banking and Currency Committee staff. at the direction of the Chairman. had individually interviewed Srans. I was unable to ascertain at that time from the staff the justification therefor or the reasons why Commit- members had not been advised of Chairman Patman's initiation of such investigation by staff members. FORD GERALD LIBRARY 130 In riew of the media attention provoked, it appeared to me Patman's action was prompted by political considerations, so I again called my Washington office and asked my legislative assistant to carefully examine the Rules of the House and the Rules of the Banking and Currency Committee to determine by what authority Patman had initiated such investigation without first seeking the authority of the Committee and by what authority he could do SO without even notifying Committee members. As & result of such research by my legislative aide. on Thursday, August 31. 1972 I dictated a letter to Chairman Patman citing the Rules of the House and the Committee and indicating my displeasure over the fact that he had initiated such investigation without seeking the concurrence of the Committee or even norifying Committee members. This letter is attached as Exhibit No. 1. At this juncture, I should point out that to the best of my recollection, there had been no Committee discussion of our Committee's jurisdiction over, or involve- ment in. an investigation of the Re-Elect Committee's handling of contributions or their possible involvement in the financing of the Watergate burglary. In short, the Committee staff investigation hit me as a complete surprise. It being necessary for me to attend the fall Republican State Convention in Detroit September 1 and 2. I did not return to Washington until late Monday. Labor Day, September 4. Inasmuch as the only information I had been able to develop regarding the content of the interviews br Patman's staff members of Stans was from a Repub- lican staff member who had been present during only a portion of such interviews. I contacted Mr. Stans to attempt to determine the particulars about the staff inquiry, whether or not a transcript had been made of such interviews or any other record of the discussions in order that I might be apprised of the substance of such interviews to the same extent as were the staff members and Mr. Patman. In the course of my discussion of the matter telephonically with Mr. Stans. I requested an opportunity to discuss the matter personally with him and arranged to see him on the morning of September 6. In view of Mr. Dean's statements on pages 103 and 104 to the effect that he and others associated with the White House were aware of and concerned about the Banking and Currency staff investigation as early as mid-August. I should point out that my first contact of any kind with anyone from the White House or the Finance Committee to Re-Elect the President was this call to Mr. Stans on Sep- tember 5, 1972.1 Also, in riew of Mr. Dean's association of the Banking and Currency Committee with what he alleges were cover-up discussions going on at this time. it is essen- tial to keep in mind the limited scope of the Patman investigation. In his letter to me, received September 5, responding to my letter of August 31, 1972, Chairman Patman said that his interest in an investigation was prompted by a letter he had received from a Committee member who urged either Patman or the International Finance Subcommittee Chairman to look into possible violations of the Foreign Bank Secrecy Act by the Committee to Re-Elect the President in connection with the transfer of some of its funds through Mexico. In addition, and subsequently. Patman brought into the scope of his interest the circumstances surrounding a $25,000 contribution to the Committee to Re-Elect the President by one who was interested in a national bank charter application which was pending. In short. by Patman's own statements, he was justifying jurisdiction of the Banking and Cur- rency Committee over the investigation by limiting its scope to the use of banks in the financial transactions of the Committee to Re-Elect the President, the bank charter matter. and to the Watergate burglary by virtue of the surfacing of funds in the bank account of Mr. Barker, one of those who had been arrested for par- ticipation in such burglary. Not satisfied with Patman's response of September 5, 1972, I immediately drafted a letter to him, which letter was co-signed by several of my Republican colleagues on the Committee. in which we demanded that Patman call a meeting of the Committee to discuss the whole matter. Our letter of September 5, 1972 is attached as Exhibit No. 2. In view of Patman's rationale for conducting the investigation. in my inter- view with Mr. Stans on September 6, I attempted to ascertain the true facts from him concerning the handling of campaign contributions. the alleged Mexican 1 At no time, before. during. and since the period covered by this chronology. have I di- cussed the Committee's action or the Watergate matter with the President. Mr. Haldeman Mr. Erlichman, Mr. Dean Mr. Mitchell. Mr. Colson. or any similar person within the Inner group mentioned hy Mr. Dean. FORD GERALD 131 endering" of such funds. and their apparent ultimate deposit in Barker's bank went. Mr. Stans informed me he did not know how or why the funds went to govico and ended up in Barker's account, stating that Mr. Gordon Liddy, the gen- will counsel for the Committee, had been the one who made the decisions regard- ::: how contributions were reported, handled, etc. under the new campaign ex- --nditure law. Since my inquiry involved the legality of the handling of such truls, it was agreed I should talk with Mr. Kennerh Parkinson, who was the legal counsel for the Finance Committee to Re-Elect the President, having increded Mr. Liddy, whose services had been terminated. I met with Mr. Stans personally only this one time, but I may have talked with him three or four times on the phone. During the course of these conversa- tions, I am quite sure I suggested that it might be better for Mr. Stans to testify. "In to give Patman the opportunity to publicize and take political advantage of Stans' non-appearance, it being the position of most Republican Committee mem- lers that Patman's interest in an investigation was more political than anything die. I discussed the application of the Bank Secrecr Act. the campaign expenditure law, and other aspects of the matter telephonically with Mr. Parkinson several times and met with him on one occasion of which I am certain and possibly a sec- and time very briefly. although I cannot specifically recall a second occasion. During this time, I had asked my legislative assistant, who is an attorney and a former law clerk for a Federal Court of Appeals Judge, to brief for me the question of the propriety of the appearance of Mr. Stans and others before our Committee. In the course of this research done by both my legislative assist- ant and myself, it became apparent that such an appearance could prejudice the rights of those who might be indicted as a result of the grand jury proceedings that were then in progress. Appreciation of this problem prompted me to write " both the Attorney General and Mr. Stans requesting the opinion of the Attor- nry General with respect to the propriety of Mr. Stans' appearance as well as the opinion of Mr. Stans' attorney concerning his own position on the appropriateness of such appearance. These letters are attached as Exhibits No. 3 and 4, respec- tively. At the time of the writing of these letters. Mr. Stans had not, to my knowledge, decided whether or not he would voluntarily appear before the Committee. It is this letter of September 8 to the Attorney General which Mr. Dean has said in his statement, was, in fact, drafted by Parkinson for Congressman Brown." I unequivocally deny this charge. The letter to the Attorney General was dictated by me to my secretary and is my work product in every respect. It is my best recollection that from the conversations I bad with Mr. Stans and Mr. Parkinson up to this point it appeared to me no decision had been made as to whether or not Mr. Stans would appear. The decision to write such letters was wholly my own and stemmed from my concern about the propriety of his ap- pearance regardless of what his decision might be. such concern having been prompted by the limited research done by my legislative aide and myself to this time. It would be asinine for me to say that in the course of my discussions of the matter with Stans and Parkinson I did not mention the concern I felt about the legal ramifications of Mr. Stans' appearance before the Committee and of my be lief that the legal opinions of those most closely involved, namely. the Attorney General and Stans, should be obtained. In any such discussions. however. it was always a matter of my apprising Stans and Parkinson of what I proposed to do, rather than receipt by me of suggestions. requests. urgings. etc. from them. Although I received no written response from the Attorney General to my let- ter of September S. on September 12 Ralph Erickson. the Deputy Attorney General, telephoned my office and talked with a member of my staff and advised that he was calling in response to my letter of September $ and indicated that the Attor- ner General would be happy to talk with me about the matter but did not intend to respond in writing. suggesting that the questions I had asked were now most because in the interim Mr. Stans had notified the Committee that he was de clining the invitation to testify. During this period of time. the Banking and Currency Committee. although considering other legislation, had been embroiled If the controverst about the conduct of hearings by the Committee into the Parman charges, the scope of which I have already described. But none of the activities regarding political expionage, bugging, cover-up. etc. which have now surfaced and which are now being discussed were known at the time the Banking and Currency Committee was contemplating its hearings and it must also is kept in mind that Patman's FORD GERALD LIBRARY 132 effort to investigate the matter of the laundered funds and Barker's involvement was analyzed by most of us at that time as being blatantly political in view of the up-coming election. Chairman Patman finally did discuss the matter with the Committee and although objection was voiced by many of us, he scheduled a meeting of the form. mittee for September 14 to receive the testimony of Stans and Phillip S. Hughes Director of the Office of Federal Elections, General Accounting Office. This Hilr the meeting at which Stans declined to appear. Because Stans had failed to appear voluntarily, Chairman Patman notified the Committee on September 25. 1972 that he intended to seek the authority of the Committee to issue subpoenas for Stans and several others at a meeting of the Committee to be held October 3. When it became certain that the Chairman would seek subpoena authority. my earlier concern about the propriety of such appearance was renewed and intensified since in the meantime the legal research done by me and my office had clearly established the danger of conducting a Congressional hearing when criminal proceedings were pending regarding the same matter. As a result, I again wrote to the Attorney General on September 26, 1972 pointing out to him that although the questions I bad raised in my September letter might have become moot after Stans had declined to voluntarily testify. Patman's plans to seek subpoeza authority made my questions and concerns Terr real once again. This letter of September 26 is attached as Exhibit No. 5. Despite my insistence in my letter to the Attorney General of September 20 1972 for an opinion to be expressed. it wasn't until the late afternoon of October: that I learned Mr. Henry Petersen, Assistant Attorner General, had replied " my letter of September 26. not to me, but to Patman. In fact, Patman had received the response from Petersen before I knew that a response had been provided since I was not given a copy until I requested the same. This letter from Peterser is attached as Exhibit No. 6 and is the same as Dean's Exhibit No. 21. In this regard. I felt at the time that the Department of Justice and the 11thr new General's Office was being most unenoperative and, in fact. was taking : rather untenable position of not wanting to get involved when mr research Ind clearly satisfied me that the success of their prosecutive efforts of those nho had been indicted by the grand jury could be seriously jeopardized by public hear- ings of the Banking and Currency Committee under the law applicable there:- especially the holding in the Delaney case. It having been my position then and it continues to be my position. as well as that of Archibald Cox. the Special Prosecutor, that public hearings in prejudicing the rights of those who have been accused, necessarily also seriously jeopardize the successful prosecution of these individuals. In any case, the Committee met on October 3 and, as is well known, roted 20-15 against authorizing the Chairman to issue the subpoenas he has requested." Although it is of little pertinence to this chronology. I wish to add that (of.- sistent with my many-times stated position regarding the Banking and Current Committee's investigation of this matter, to wit. that such investigation short await completion of criminal proceedings, I wrote to Chairman Patman in early January of this year urging him to designate a staff member or hire outside COUR- sel to monitor the criminal trials of the "Watergate Seven" so that we might !- kept current on the proceedings of those trials so we would be prepared to Mr- duct a Committee investigation upon completion of the criminal proceedings Needless to say. the Chairman declined to grant my request and in a reply P.X. pressing many reasons. closed the door upon any investigation br our Committe. From the foregoing. it is obvious that Mr. Dean, in his testimony before the Senate Select Committee. either has stated things to be trne which he does know to be true or has engaged in absolute falsehoods. More particularly. I revin the following: (References are to the statement presented to your Committee " June 25, 1973.) On nage 104. Mr. Dean states: "At some point in time during these investion tions Mr. Parkinson was put in touch with Congressman Gary (sic) Brown who was a member of the Banking and Currency Committee." 2 In view of Mr. Dean's testimony about the proposed Patman witness list. I should X at this noint that I attempted to determine who Patman manted to subpoena. but it until I received such list. hand delivered at 5 :05 P.M. on 10/2/72. the evening before " 10/3/72 meeting. that I or anyone else, to my knowledge. knew who Patman intended :- subpoena and call as witnesses. FORD GERALD 133 The fact is, Mr. Parkinson was not put in touch with me. I requested an oppor- tealty to talk to Mr. Parkinson during my original contact wtih Mr. Stans when ::e could not explain to me the several legal aspects of the handling of funds by Mr. Liddy, the legal interpretation given to the campaign expenditure law as it applied to contributions made to the Committee to Re-Elect the President before and after April 7, 1972, and other aspects of the staff interrogation of Mr. Stans. Also on page 104, Mr. Dean states: "To the best of my recollection this may have resulted from discussions between members of the White House Congressional Relations staff with the Republican members of the Banking and Currency Committee to determine who would be most helpful on the Committee and Brown indicated his willingness to assist." Emphasis added.) The fact is, I recall no conversation with anyone which could be interpreted RS my indicating a "willingness to assist." This is especially true if one interprets, as he must, Mr. Dean's word "assist" as being willingness to assist in the White House efforts to block the Patman Committee hearings for the second reason he states on page 103; that being, and I quote "and second, they just might stamble into something that would start unraveling the cover-up.' It should be pointed out that as of even September S. 1972, or for that matter as late as October 3. 1972, to my recollection, there had been no public suggestion that a "cover-up" was in progress. The fact that I opposed such hearings at that time because I was satisfied the law made inappropriate and undesirable the conduct of hearings of our Committee while the criminal proceedings were pend- ing and, in addition. thought Patman's desire for such hearings was purely political, while for other reasons the White House may have opposed such hear- ings. may make our goal similar, namely. the blocking of the hearings, but it is totally improper to attribute the same motivation, as Mr. Dean has done. Again on page 104. Mr. Dean states : "On September Sth Congressman Brown sent a letter to the Attorney General regarding the forthcoming appearance of Secretary Stans and others before the Patman Committee. I have submitted to the Committee a copy of this letter Exhibit No. 18), which was, in fact, drafted by Parkinson for Congressman Brown." (Emphasis added.) The fact is, this letter was not drafted by Parkinson for me, nor to the best of my recollection does my letter to the Attorney General contain any input from Parkinson. although of course, as I have already indicated I had apprised Stans and Parkinson of my plans to solicit the opinion of the Attorney General. On this same page 104. Dean again refers to "Parkinson's drafting the letter for Congressman Brown," which is a repetition of the previous erroneous statement. I wish to advise the Committee with respect to this statement that upon learning of this charge made by Mr. Dean. I knew it to be SO completely erroneous that I sought an explanation for the making of same by Mr. Dean. I attempted to contact Mr. Parkinson to determine whether or not he, or anyone else to his knowledge, might have suggested or stated to Mr. Dean that he. Parkinson. had drafted such letter. Mr. Parkinson was not immediately available and I was unable to talk with him until the late afternoon of Tuesday. June 26, 1973. Dean's. statement having been made, as you will recall, in his testimony before this Committee on June 25. 1973. In this telephone conversation with Mr. Parkinson on Jnne 26, Mr. Parkinson unequivocally denied that be had drafted such letter or that he, or anyone else to his knowledge, had advised Mr. Dean that such. letter had been drafted by him, Parkinson. However. in the course of my attempting to learn from Parkinson how Dean could possibly have made this statement, Parkinson recalled that be had prepared a draft of a letter at the request of Mr. Dean which he. Parkinson. understood was to be furnished to the Attorney General C3 c proposed response by the- Attorney General to my letter of September S. 1972 Dean's Exhibit No. IS. my Exhibit No. 3). I requested a copy of this proposed Craft which TAS prepared by Mr. Parkinson for Mr. Dean and it is attached hereto 25 Exhibit No. T. It is Mr. Parkinson's further recollection that subsequent 77 his preparation of this draft. Mr. Dean took the same for what Mr. Parkinson understood to be a further- review or revision by Mr. Dean. Of course. this proposed draft was apparently never used as intended since no response was made at that time to my letter of September S, 1972. 3 Although Dean cites no time frame for this statement. It should be remembered I inite- pendently and aggressively had commenced opposing the Patman action as early as STI/T2 and had no knowledge of what Dean says were on-going conversations within his group on the subject. FORD GERALD LIBRARY 134 Although it is relatively insignificant. on page 105 of his testimony, Dean states that no response was sent by the Justice Department to my letter of September 8 prior to the scheduled appearance of Mr. Stans on September 14: whereas, at- though Dean's discussion of this matter on page 105 may be substantially accurate. I did receive a telephonic response to my letter of September S from Deputy Attorney General Erickson in which, as I have above pointed out, he indicated no written response would be provided and that he felt the questions I had raised in my letter of September S were moot because of Stan's decision not in appear before the Committee voluntarily. On page 103, Mr. Dean states: "I began receiving increasing pressure from Mitchell. Stans. Parkinson and others to get the Justice Department to respond to the September Stii letter of Congressman Brown as a vehicle that Congressman Brown could use in persuad- ing others not to vote in favor of the subpoenas. Congressman Brown felt that with this document in hand he could give the Republicans and others something to harg their vote on." (emphasis added) The fact is, I know of no basis for these statements since my only purpose in writing to the Attorney General on both occasions, that is, September S and September 26, was to attempt to get the Attorney General to recognize the law for what I knew it to be and to appreciate the prosecutorial problems which would be created by public hearings of the Committee. I especially know of no basis in fact for the underlined portion of the foregoing quote from Dean's statement, since I cannot recall having expressed the same to anyone. However. there can be little question but what such a letter would have a favorable impact upon other members. At the bottom of page 10S and on page 109 of Dean's statement he states that much effort was put forth by many people, including Mr. Timinons, to persuade meinbers of the Committee to rote against the hearings. I can only speak for this member of the Committee in this regard, but I do not recall receiving any urging IT from anyone at the White House to cast my vote against such hearings. In fact, I am very certain I had no significant contact from anyone associated with The Administration or the White House regarding the hearings other than the contacts I have already discussed with Mr. Stans and Mr. Parkinson. To the best of my recollection, my only contacts with White House personnel were insignificant contacts I had in the course of normal legislative business with Pick Cook, the White House liaison agent for the House of Representatives. who, father than suggesting or urging me to take any course of action, merely inquired of me as to how things were going and whether or not I thought those of us who opposed the hearings would be successful in our opposition. In my dis- cussions with other members of the Committee at that time and since, I have yet to find one who indicated that he or she was pressured in any way to vote as he or she did. In conclusion, I wish to thank you, Mr. Chairman, and the members of the Committee for your patience in permitting me to provide this probably unneces- serily lengthy statement. My purpose in doing so was to establish for the record not only the absence of culpability on my part, but the absence of culpability on the part of the other members of the House Committee on Banking and Cur- rency in opposing the Patman investigation, to the extent that I have any knowl- edge of other members' actions. I hope I have satisfied the Committee and the listening, viewing, and reading audience that what Mr. Dean has concluded was causally related action by the majority of our Committee to what he was doing at the White House, has no basis in fact and should not be so presumed. If opposition to action proposed by one's colleagues. when that opposition is based on principle and proper political motivation, cannot be voiced without such opposition being interpreted as culpa- ble conduct and obstruction of justice, then we certainly have reached a sorry state of affairs in our political and legislative system. If I have done nothing else. I trust that I have at least somewhat dispelled the "guilt by association" implicit in Mr. Dean's testimony by his linking of the House Banking and Currency Committee action with the whole gamut of culpa- ble conduct about which he has testified. I will be glad to answer any questions the members of the Committee might care to pose. Thank you. Senator BYRD Mr. Ford. you undoubtedlv would recall any conver- sation you might have had during that period of Angust-October with the President, with Mr. Haldeman. Mr. Ehrlichman, Mr. Dean. or any- w FORD GERALD 135 .ne at the White House, in connection with the proposed investigation in the Patman committee. Do you recall any such conversations that would indicate that the White House wanted you to lend your efforts, it leader, to blocking such an investigation? Mr. FORD I can say categorically, Senator Byrd, I never talked with the President about it, or with Mr. Haldeman, Mr. Ehrlichman, and Mr. Dean. I know emphatically I had no conversation with them now. Almost daily, during my period as Republican leader in the House, I talked with Mr. Timmons, or someone in the Legislative Liaison Of- fice of the White House, but even in this case I do not recall any con- versations concerning this particular matter. Senator BYRD. Was there any discussion between you and Mr. Tim- mons or between you and the other members of the Patman committee or any of your colleagues in the House to the effect that the investiga- tion would possibly be harmful to the President, harmful to his reelec- tion chances in the then upcoming Presidential election, or to the Republican Party generally ? Mr. FORD. As I recall the two meetings that I attended, both of which I called, the real issue that was discussed-and Jerry Brown's memo or prepared statement probably expresses it better than I can- was that Mr. Patman, the chairman of the Committee on Banking and Currency in the House, was going about the matter in the wrong way. And as I recall, statements were made he was going on a fishing expedition. Now, the members on our side of the aisles in that committee were concerned about the procedure and the dangers that that procedure might lead to a precedent. I think, in all honesty, that was the basic thrust of the action of the Republicans. And I think every Republican on the committee voted to deny that responsibility or that power to the chairman. And I think they were joined in that vote by five Democrats, as I recall. So a majority of the committee turned down the authority. Senator BYRD. But as I understand you, any efforts that you may have contributed toward the stifling or impeding or blocking of such investigation by the Patman committee were not born of your feeling, or at least your feelings as expressed to anyone, that such an investiga- tion would be harmful to the President, harmful to his chances of reelection, or harmful to your party Mr. FORD. The answer is no, Senator Byrd. Senator BYRD. Now, Mr. Ford, as you know, the Attorney General of the United States wears two hats. He is the chief law enforcement officer of the United States and, at the same time, he is the chief po- litical adviser to the administration, regardless of whatever adminis- tration may be in power, whether it be a Democratic administration or Republican administration. Do you believe that the Attorney General should participate in partisan political activity such as the congres- sional elections of 1974, or do you think he should stay in a bipartisan stance such as that traditionally taken, let us SEF. by the Secretary of State? Mr. FORD. Certainly the Secretary of State and the Secretary of Defense should refrain from partisan political activity. The Attorner General does not have quite the same responsibilities as the two previ- ously mentioned, but I do believe that he should certainly be circum- spect, because as the principal law enforcing officer of the Government : FORD GERALD LIGRARY Nomination of Gerald R. Ford of Michigan to be Vice President of the United States -- Report of the Committee on Rules and Administration - November 23 1973/ 90 DELAY IN CALLING UP HOUSE CONFERENCE REPORT ON 1972 FEDERAL ELECTION DISCLOSURE LAW The CHAIRMAN. The effective date of the 1972 Federal election disclosure law was delayed some 5 weeks in the House, from December 14, 1971, to January 1972, because of the failure to call up a conference report for final House action. An enormous fundraising drive was conducted by Maurice Stans during the 5-week period prior to the effective date of the law. He raised, reportedly, more than $11 million for President Nixon during this period. The Stans drive was based on the premise that contributions should be made at that time by all donors who wanted to keep their contributions secret from public scrutiny. Were you ever approached by anyone from the White House, the Nixon Campaign Committee, or the executive branch concerning the issue of delaying final passage of this legislation by the House? Mr. FORD. To my best recollection, Mr. Chairman, nobody contacted me from any of those areas that you mentioned. The CHAIRMAN. Did you ever discuss the issue of delaying that legislation with any Members of Congress or with anyone else? Mr. FORD. Well, naturally, in the job that I had, I had to know what was coming up, what was to be programed at any one time on the floor of the House. I do not now, nor did I then control the programing of legislation. That is the responsibility of the majority party. I may have asked if it was coming up. I may have made some comment, but in any case I was not the person who would make the final decision. BLOCKING INVESTIGATION BY HOUSE BANKING AND CURRENCY COMMITTEE OF WATERGATE BREAK-IN Mr. Patman, Chairman of the House Banking and Currency Com- mittee tried to go into the captioned matter prior to the election last November. The Republican members of the Committee opposed such action. Thus it is appropriate to know what part Mr. Ford played in blocking the investigation at that time. The record shows his answers to questions propounded. Senator BYRD. Representative Ford, will you relate to the Committee your role, if any, in the blocking of an investigation by House Banking and Currency Committee into the Watèrgate break-in as proposed by Chairman Wright Patman in October of 1968? Mr. FORD. Senator Byrd. I do not have the full details here, but I can outline, give you the salient points. Chairman Patman had proposed sometime in October of 1972 that his Com- mittee, the Committee on Banking and Currency in the House, undertake an investigation of certain American banks in trading or handling accounts between an American bank and a foreign bank. And that the Senator-Chairman Patman wanted subpoena authority to carry out this investigation. A number of members of that Committee 02 the Republican side and several on the Democratic side were opposed to giving that authority to Mr. Patman A number of our Republicans on that Committee came to me and said, "Jerry, we think you ought to call a meeting so that we on our side of the aisles could bring the leadership up to date, and perhaps the leadership would give some counsel to the Republican members of the Committee OR Banking and Currency." So my position, as the Republican leader of the Honse, st his request, called a meeting. We met with the Republican members of that Committee on one or two occasions. They brought us up to date We talked about what the policy ought to 22" = the Committee, but there was no Republican party decision made. The action taken by the Republicans pins. the fire Democrats was, I think, to deny Chairman Patman that power of subpoena. Senator BYBO. You may be aware John Dear restified to the Senate Watergate Committee on June 25 of this year, that Enter Republican leaders "acted at the request of the White House to block that investigation" Were you in contact with anyone at the White House during the period of August through October 1972 concerning the Patman Committee's possible in- vestigation of the Watergate break-in? x FORD GERALD LIBRARY 91 Mr. FORD. Not to my best recollection. The best and, I think, the most authoritative answer to this question is one that Representative Jerry Brown of the Third District of Michigan submitted to the Ervin Committee. Congressman Brown was very much involved as a member of the Committee on Banking and Currency, and his name was much more closely identified with this problem than mine. As a result, he prepared the very detailed statements which I understood were put in the record of the Ervin Committee. Senator BYRD. Mr. Ford, you undoubtedly may recall now any conversation you might have had during the period of August-October with the President, with Mr. Haldeman, Mr. Ehrlichman, Mr. Dean, or anyone at the White House, in connection with the proposed investigation by the Patman Committee. Do you recall any such conversations that would indicate that the White House wanted you to lend your efforts as a leader to cloaking such an investigation? Mr. FORD. I can say categorically, Senator Byrd, I never talked with the Presi- dent about it, Mr. Haldeman, Mr. Ehrlichman, and Mr. Dean. I know emphatically I had no conversation with them now. Almost daily, during my period as Republican leader in the House, I talked with Mr. Timmons, or someone in the Legislative Liaison Office of the White House, but even in this case I do not recall any conversations concerning this particular matter. Senator BYRD. Was there any discussion between you, Mr. Timmons, or between you and the other members of the Committee or any of your colleagues in the House to the effect that the investigation would possibly be harmful to the President, harmful to his re-election chances in the then upcoming Presidential election, or to the Republican party generally? Mr. FORD. As I recall the two meetings that I attended, both of which I called, the real issue that was discussed, and Jerry Brown's memo or prepared statement probably expresses it better than I can, was that Mr. Patman, the Chairman of the Committee on Banking and Currency in the House, was going about the matter in the wrong way. And as I recall, statements were made he was going on a fishing expedition. Now, the members on our side of the aisle in that Committee were concerned about the procedure and the dangers that that procedure might lead to as a precedent. I think, in all honesty, that was the basic thrust of the action of the Repub- licans. And I think every Republican on the Committee voted to deny that respon- sibility or that power to the Chairman. And I think he was joined in favor by five Democrats, as I recall. So the majority turned down the authority. Senator BYRD. But as I understand you, there was no-as I understand you, any efforts that you may have contributed towards the stifling or the impeding or the blocking of such investigation by the Patman Committee was not born of your feeling, or at least your feelings as were expressed to anyone, your feeling that such an investigation would be harmful to the President and harmful to his chances of re-election or harmful to your party or harmful to his re-election? Mr. FORD. The answer is no, Senator Byrd. INFLATION Senator PELL. Notwithstanding the fact that this administration has been beset by many troubles, I think there is one national domestic problem that is probably of more concern to everyone today than any other problem, and that is the question of inflation. I was wondering what you saw as your contribution toward ending this tendency toward inflation? Mr. FORD. I agree the greatest domestic problem The have today is inflation. I think there are four ways you can go about trying to remedy it. First, you have to identify where the major areas of inflation are. No. 1 is food. No. 2 is petroleum. Other than those two areas. I think we have made a reasonably good battle with considerable success against inflation, but food and petroleum are serious- The Congress asked that the President approve an agricultural bill aimed at increasing supply. I think this is good legislation. I believe it will help alleviate some of the problems as to the supply of food, and that would mean a holding of the line, hopefully a reduction in the cost of food. 2 FORD BERALD LIBRARY Nomination of Gerald R. Ford to be the Vice President of the U.S. Hearings before the Committee on the' Judiciary, House of Representatives, November 1973 156 Mr. EDWARDS. In hindsight, do you think your decision was correct? Mr. Ford. Well, it is somewhat bolstered by legal scholars. There has been no definitive decision. I think I could produce as many scholars who believe as I do as others might produce for their viewpoint. So I think it is an unresolved matter where there is an honest difference of opinion. Mr. EDWARDS. Had you discussed the matter previously with the Více President before he came to the Speaker's? Mr. FORD. I had on two occasions. as I recollect, at his request, not to just discuss his possibly submitting his letter to the Speaker, but to Jet him give me and one other Member of the House an opportunity to hear his side of the story, which he told both of us on some two occasions. At the time, in both of those instances, he inferred in the first and talked more affirmatively in the second that he might come up and see the Speaker with this letter requesting action. I did not know however. the day that he did it until I understood he was in the Speaker's office, Mr. EDWARDS. Did he discuss with you the rather large extent of his criminal involvement before. in these previous discussions, in these discussions before you met in the Speaker's office? Mr. Ford. He discussed with me and one of my colleagues the allega- tions that were alleged, not the full extent of them, and his willingness to take an oath that they were untrue. Mr. EDWARDS. Did he discuss his plan to submit the matter to the House of Representatives with the President? Mr. FORD. With the President? Mr. EDWARDS. With the President. Mr. FORD. I am not familiar one way or another with that. Mr. EDWARDS. He did not tell you at these previous meetings whether or not he had discussed the matter with the President? Mr. FORD. He did not. Chairman RODINO. Your time has expired. Ms. Holtzman? Ms. HOLTZMAN. Thank you. Mr. Chairman. Mr. Ford, it is very late in the day and you have been patient after a long day, 2 days really of grilling, and I have a few questions to ask of you at this point. The first regards a report in October 1972 by the staff of the House Banking and Currency Committee which uncovered a number of serious allegations regarding the reelection campaign of President Nixon, including information that large amounts of campaign con- tributions had been traced to one or more of the Watergate suspects. about a secret Republican fund of at least $350,000 available that was being used for intelligence-gathering purposes, that a Mexican bank had been used to launder large amounts of campaign funds, that a Federal bank charter had been granted to a large Nixon campaign donor in unusual haste, and that top officials in the Presidential cam- paign had ordered the bugging of Democrats National Headquarters as well as the surveillance of bank accounts of Democratic Congress- men and officials. According to your testimont in the Senate, I understand that you as a Republican leader played a role in the stopping of the investign- FORD GERALD LIBRARY 157 tion plan in connection with the report by the Banking and Currency Committee investigation. This is not my question, Mr. Ford; let me finish. Now, I understand also from your testimony that although you met with Mr. Timmons of the White House virtually every day, you did not discuss with him these matters of the allegations in the Banking and Currency staff report and you did not discuss the White House role or White House interest in stopping the investiga- tion by the Banking and Currency Committee; is that correct? Mr. FORD. Well, fust I should make one correction. I never testified before the Ervin committee. Ms. HOLTZMAN. No, no, I mean before the Senate Rules Committee, I said before the Senate. Mr. FORD. Oh, I thought you inferred Senator Ervin's committee. Ms. HOLTZMAN. I set forth a story there and I have subsequently included in the testimony over there the detailed statement that our colleague, Mr. Brown, submitted to the Ervin committee involving the whole matter. Mr. Form. Now, I said over there that-and by over there I mean the Senate committee-that I did not discuss the action that I took, which was to call two Republican meetings of members of the Banking and Currency Committee with Mr. Timmons or anybody else. Ms. HOLTZMAN. I understand. What I wanted to ask you was. did you discuss with Mr. Timmons or with anybody else at the White House whether or not the allegations made by the Banking and Cur- rency staff had any basis in fact or not. Did you discuss with them, let's say up to the period of November 1? Mr. FORD. I do not remember discussing those allegations with any- body on the White House staff in 1972. Ms. HOLTZMAN. OK. Well, my question then is really-it goes on the action that you took investigation. with respect to that proposed Banking and Currency Committee In a letter, as I understand it, reported in the press on November 1, 1972, you called the committee staff report the worst form of last- minute smear tactics, and I am concerned that this was done without 2 an apparent attempt to verify with the White House people the charges that had been made by that committee. Mr. Ford. Well, my release in that regard was predicated on the information that was given to me by the members on our side of the aisle of the Committee on Banking and Currency. Ms. HOLTZMAN. Well, as I understand it then, these committee meetings-and I read Mr. Brown's. Congressman Brown's statement- the problem that they felt with the Patman-proposed investigation leader, attended these sessions. was that it was going to be a fishing expedition, and you. as minority 3 Did you ever inform them one way or the other that you had no information charges? one way or another as to the truth or falsity of these Mr. FORD. I was asked by several members on our side of the aisle on that committee to call the committee together. That was and is a responsibility, as the Republican leader in the House, to get groups like that together when they have a problem. I did it. I presided. FORD GERALD LISRARY 158 They discussed the position that they as a group ought to take in those hearings or in those committee meetings, and in the course of the discussions at those several meetings, comments were made I.V various members as to the information they thought might be avail- able. and they thought that Mr. Patman was going on a fishing expedition. and they had beliefs they thought were sound, and, them- fore. decided to rote to postpone any action. I think all the Republicans voted one way with the help of five Democrats. Ms. HOLTZMAN. I understand that but I, as I said, was concerned and still am concerned that statements were made in an attempt to block that committee investigation, and some of the charges out of which it arose have subsequently turned out to be true, without real 4 investigation it seems by anyone as to whether or not those charges had any basis in fact. Mr. Ford. Well, I think what disturbed a number of members was that Patman committee, which is the Committee on Banking and Currency, has limited jurisdiction. It does not have the broad juris- diction of the Ervin committee in the Senate that can cut across jurisdictional lines between one standing committee and another. The Subcommittee on Banking and Currency has rather arbitrary juris- dictional limits and some of the things that were included in, as I rec- ollect, in Mr. Patman's prospective investigation, and some of the things that subsequently turned up in the Ervin committee were well beyond the jurisdictional limits of Mr. Patman's Committee on Bank- ing and Currency. Ms. HOLTZMAN. But I take it that the laundering, the use of inter- national banks, which still appears to turn out to be the case, for 5 the use of illegal campaign funds, probably did fall within the juris- diction of that committee. Mr. FORD. Yes, I gather that particular item did, and I would not argue that but some of the other items were, I think a little beyond the Banking and Currency Committee jurisdiction. Ms. HOLTZMAN. That might be. I would like to turn to another area. I am sure I am not going to have time to finish it, but I feel it is importance simply to dispel any remaining cloud that might arise at a future time. I must say that I myself have reviewed the very intensive financial investigation which has been made both by the IRS people and by the committee staff, and I must say that I personally, and I am sure many other people, are relieved that the stress thus far, and it has been virtually complete, have shown that you personally have not profited from your public trust, aside, of course, from your salary. Mr. FORD. Thank you. Ms. HOLTZMAN. And your honorariums. But πe do live in a time of enormous public distrust of various political people and in view of the charges that have been surrounding the White House itself with respect to campaign contributions and alleged favors done in response to those campaign contributions, I would like to raise some instances that have come to our attention which do not reflect any improper conduct on your part, but I would like to give you the opportunity under oath to dispel any possible impropriety at this time SO that nobody can say that we, as a committee, did not review this area and you were not given an opportunity to comment on it. LIBRARY GERALD FORD 706 Mr. FORD. I probably would have given it to my then administrative assistant, Mr. Meyer, and he would have communicated with Mr. Visit or Mr. Morton. Ms. HOLTZMAN. Well, I would like to draw your attention again to another letter that was contained in the-files transmitted to me he Wednesday by Mr. Becker, in which you are writing again to Mr. Ger- don and it is dated March 21, 1972, and in the second paragraph you bottom: say-this is a letter apparently signed by you, has your name at the I must also thank you for your generous check made out to the D.C. Committee to Re-elect Gerry Ford. I am turning this check over to the Chairman of this Committee and did want you to know my personal gratitude. Does this letter in anyway refresh your recollection as to whether the chairman of that committee, Mr. Mark, might have kept records 35 to campaign contributions? Mr. FORD. That was 3 thank you letter to Mr. Gordon. Ms. HOLTZMAN. Right. Mr. FORD. As I indicated 2 moment ago, Mr. Gordon was a very long and dear friend of mine. He apparently sent me or my office a check and I transmitted it to Mr. Mark. This does not refresh my memory as to the procedure that Mr. Mark or Mr. Morton used. That was something that was internal as far as they were concerned. Ms. HOLTZMAN. Does this letter in anyway refresh your recollection as to the amount of the contribution made by Mr. Gordon ? Mr. FORD. I am sorry. Ms. HOLTZMAN. Do you recall at this time the amount of the con- tribution made by Mr. Gordon to the District of Columbia Committee! Mr. FORD. I do not recall precisely, but it would be a fair guess that it would be about $500. Ms. HOLTZMAN. Thank you. I notice on top of the letter a notation "campaign." Does that refer to any file called "campaign? Mr. Ford. It is not in my handwriting. I assume that is a notation -for the filing setup, and presumably this was a letter in that file that was given on your request. Ms. HOLTZMAN. Well, if there is such a file marked "campaign" from which this came, I wonder if you would be kind enough to have your staff review it and allow our staff to examine it. Perhaps it contains other indications of campaign contributions to the District of Columbia Committee in 1972. Mr. FORD. I will be very glad to, and I think that is how we got these other letters. Ms. HOLTZMAN. That mav be. Thank you, Mr. Ford, in that respect. I also wanted to clarify the record with respect to my questions on the Banking and Currencv Committee investigation. I gather it was your testimony that you did not have any conversation with Mr. Tim- mons or anybody else in the 11 nite House regarding either of the following: One, an intention on the part of the White House to squelch the Banking and Currency Committee investigation, and second, the 6 truth or falsity of any of the allegations made. My question is, we talked about. prior to November 1, 1972, and that was your testimony, that you dia not have such conversations. I would just like to clarify the date. Would that go back to the time at which FORD is LIBRARY 707 the Banking and Currency Committee worked, became public around toward the latter part of August 1972? Mr. FORD. I believe so. As I recall my testimony, I said I never called Mr. Timmons on this matter specifically. I also said in the course of our discussions about many legislative matters we might have discussed very generally the situation there, but I never called him nor he called me concerning these particular problems in the Committee on Banking and Currency. Ms. HOLTZMAN. Well, I did not mean to misconstrue your testimony. I thought that that was the gist of it. But getting back to around the end of August deadline, the only conversation you might have had are the ones you just referred to now? Mr. FORD. That is my best recollection. Ms. HOLTZMAN Can you recall now what conversations you had with Mr. Timmons, even though they may have occurred in the context of another phonecall or about another subject? Mr. FORD He may have asked me the status of, one, any legislation before the committee; and two, my appraisal of what the committee might do. But it would not go into him urging me to do something with our members of the committee or any Democrats on the committee or 118 8 my saying I had done this, because they are not involved in it, and my only role was getting our members and our side together. Ms. HOLTZMAN. Did he express to you at any time, let us say toward the end of August 1973, to the beginning of November, any concern 9 he might have had about the status of the Banking and Currency Committee investigation? Mr. FORD. That is a long time ago, and the details of that kind of a conversation I could not actually relate to you. Whenever we talked 1110 about that matter it was in general terms, not as to action requested by them or action taken by me. Chairman RODINO. The time of the gentlelady has expired. All requests for time have expired. Mr. CONYERS. 1 question is outstanding. I was granted 10 minutes. Chairman RODINO. The gentleman was asked as to what time, and the gentleman asked for 10 minutes and that 10 minutes has expired, and other members yielded to the gentleman. Now, is the gentleman making any further request for time? Mr. CONYERS. I have several questions, Mr. Chairman, that I would like to get on the record, and I would ask for a sufficient amount of time to develop them. Chairman RoDINo. What is a sufficient amount of time? Mr. CONTERS. Five minutes. Mr. Chairman. Chairman RODINO. Five minutes. The gentleman is recognized for 5 minutes. Mr. CONYERS. I thank the Chair. Mr. Ford, is it true that you helned Mr. Kellogg in his attempt to obtain an ambassadorship? Mr. FORD. I was asked to endorse an ambassadorship that Mr. Kel- logg wanted. Mr. CONYERS. Right. Did he not make 2 substantial contribution to the Republican National Committee? Mr. Form. It is my understanding that Mr. Kellogg. prior to the is FORD election of 196S or in 1968. made a contribution of $30,000 to the New York State Republican campaign fund. Sometime in 1969, virtually GERALD LIBRARY Confirmation of Gerald R. Ford as Vice President of the United States DISSENTING VIEWS OF MS. ELIZABETH HOLTZMAN I cannot in good conscience recommend that this House confirm Gerald R. Ford as Vice President of the United States. First, the Judiciary Committee's investigation remains incomplete in two criti- cal respects: the constitutionality of Mr. Ford's taking office and cer- tain unresolved conflicts in his testimony. Second, despite Mr. Ford's personal affability and the rectitude of his personal finances, he does not meet the high standards which, under the 25th Amendment, we are bound to apply to his nomination. The Constitutional Impediment Article I, Section 6 of the Constitution prohibits a Representative, during his term, from appointment to "any civil Office under the Au- thority of the United States the emoluments whereof shall have been increased during such time." In this term Congress has passed Public Law 93-136, which increased the civil service retirement bene- fits for the Vice President. There is little question that this increased benefit constitutes an "emolument." Unfortunately, this Committee did not adequately explore whether this emolument is a bar to Mr. Ford's assuming office when confirmed. No witnesses were heard on this question, and no legal memoranda were available to the Committee when it disposed of this question. Yet, the question is a serious one. The constitutional debates and the policy of the emoluments clause would indicate that it applies to an appointed vice president. I have attached an analysis prepared by a Professor at the Yale Law School indicating that the confirmation of Gerald Ford as Vice President might well run afoul of Article I, Section 6. This House has an obligation to assure that whoever is confirmed does not serve under a constitutional cloud. At this stage of the pro- ceedings no such assurance can be given. Clearly, if remedial legisla- tion is needed to perfect the confirmation, it ought to be enacted now. The Unresolved Conflicts in Mr. Ford's Testimony A second and equally important unresolved problem concerns Mr. Ford's statements about his role in the effort, which some have alleged was initiated and coordinated by the White House, to halt the investi- gation into certain aspects of the Watergate affair by the House Bank- ing and Currency Committee in late summer and fall of 1972. In his Senate testimony, the nominee admitted having organized two meet- ings for Banking and Currency Committee Republicans to "discuss" the investigation, but he firmly denied acting to halt the investigation at the behest of the White House. Indeed, Mr. Ford broadly and explicitly denied having discussed the matter of the investigation with any White House official during the entire period that the proposed investigation was an issue in the House. See page 284 of typed Senate Transcript.) (65) 66 On the last day of his testimony before the House, however, Mr. Ford for the first time made sworn statements which indicated that he had indeed discussed the matter of the Patman investigation with Mr. Timmons, a White House liaison officer. (See pages 706-707 of House typed transcript.) Mr. Ford's House testimony therefore calls into question his testi- mony before the Senate. Because this testimony came at the very end of the hearings, it was impossible to pursue further the nature and content of the "general" discussions Mr. Ford then recalled, and to resolve the contradiction with earlier testimony. To do so before the nominee is confirmed is imperative, because at a time when the Ameri- can people are clamoring for absolute candor from their national lead- ers, the House would do a disservice both to them and to the nominee by leaving unresolved in the record a disturbing and serious contra- diction about a matter bearing directly on Mr. Ford's fitness for the Vice Presidency. I am therefore constrained to recommend that action on the con- firmation be postponed until this problem and the constitutional ques- tions are answered. Obligations under the 25th Amendment By requiring Congress to act as the surrogate of the American peo- ple, the 25th Amendment places a heavy burden on the Members of this House. Under any circumstances, we must scrutinize a nominee for Vice President in light of his fitness for the Presidency. In these times, however, when the nation is enfeebled by the public's loss of faith in its leaders, and when, thus enfeebled, we are nearly over- whelmed by the most serious conjunction of domestic and foreign pol- icy problems we have faced in many years, we must insist that the person we confirm as Vice President can, if he becomes President, re- capture public confidence and give us honest, compassionate, imagina- tive and outstanding leadership. Mr. Ford does not meet this test. The Secret Bombing of Cambodia Unfortunately, he cannot claim truly high marks for candor. Know- ing full well that Mr. Nixon had lied to the American people about the secret bombing of Cambodia, Mr. Ford nonetheless gave his personal assurance on the floor of the House in 1970 that Mr. Nixon had never deceived the Congress or the public. Should we accept as a potential President a man who shrugs off as "political license" his own failure to be candid with his colleagues and the public, and who affirmatively defends, as Mr. Ford did during our hearings, the right of a President to lie? The Banking and Currency Committee Investigation The nominee's judgment also comes into question when we examine his leadership role in killing the House Banking Committee's Water- FORD gate investigation before the 1972 presidential election. The Commit- tee's staff had uncovered evidence that illegal campaign funds had been used to finance the Watergate break-in and that high White House of- ficials were implicated in the affair. Mr. Ford admits that he helped LIBRARY block the investigation. of TODAY SHOW JOHN DEAN INTERVIEW TOM BROKAW: If ever there was a contemporary author in America, who needs no introduction, it is John Dean who was counsel to President Nixon, a man who served him during the Watergate coverup, who subsequently testified against him, and in fact, served time in prison, as a result of his own role in Watergate. He is now the author of a book called "Blind Ambition", a book about the Watergate coverup, about the atmosphere in the White House at the time. Mr. Dean is with us here on "Today" this morning, with Carl Stern, NBC News Correspondent, who covers the Justice Department for us on a regular basis, and còvered, gave much of his life, in fact to the coverage of Watergate. Mr. Dean, first of all, there are some new developments in this book. You describe how President Nixon first raised the possibility of blocking the initial Congressional investi- gation, or initial Congressional hearings into Watergate, hearings that Congressman Wright Patman of Texas wanted to call, and he. raises the possibility of using Jerry Ford, who was then House Minority Leader, to block those hearings. Did the White House think of Gerald Ford as a stooge? JOHN DEAN: I don't think a stooge is the right word. They certainly thought of Jerry Ford as somebody who would do their bidding, when it needed to be done; and with the Patman R. FOND GERALD [2] hearings, it was something that concerned all of us at that stage of the coverup very much, and as you will recall from the book, the President says that he wants Ford to get in, and do his part to block those very untimely hearings at the time. BROKAW: One of the ways which you had hoped to put pressure on Patman was to detail some questionable campaign contributions that he may have received, and when you had a discussion about this with Bill Timmons, who was then heading up the Congressional liaison from the White House, he said: That's a sensitive point, because Ford. may have some problems in that area as well. What were the problems that Gerald Ford may have had, in campaign contributions? DEAN: Bill did not elaborate at the time. He knew that I had sent one of the lawyers from the re-election committee to check the records of the members of the Patman committee; and I had those, in fact the day I was in the office, talking with Bill about this; and he said that, John, he said, I don't think this is a very good idea, because some of our guys, and Jerry, may have some problems along this line; so he said don't raise it; and I agreed. CARL STERN: Perhaps the most disturbing matter raised, though, in your discussion in the book about Gerald Ford, and the efforts made to derall the Patman hearings in October of 1972 is the thought that Mr. Ford did have very intimate R. FORD GERALD [3] contact with White House staff people, in planning precisely how to do this. Now, Mr. Ford testified during his own confirmation hearings that he didn't have any such contact, or at least, he didn't recall any. Did Mr. Ford tell the truth about that? DEAN: Well, I don't recall, Carl, precisely what Mr. Ford said at the time of his confirmation hearings to become Vice President. All I'm recalling are the facts as I remember them, and I remember very clearly that Bill Timmons told me on a number of occasions how he was working with Mr. Ford, and Mr. Ford was doing his part, after the White House started that initiative. STERN: Timmons has denied having had any contact with Ford. Who had contact with Ford? DEAN: Well, I don't necessary say it was Timmons himself that was having the contact. But somebody on his staff-- STERN: Who? DEAN: --and it was Dick Cook, the man who had once worked with the Patman Committee, before he had later joined the White House--with the individuals. STERN: How do you know that? DEAN: Well, I talked to Dick about it. It came up in Presidential conversation that Dick was a man who had been working on it. Bill Timmons, as you'll recall at the time was on the FORD witness list as one who would be called before the Patman Committee. So Bill was very sensitive about his own involvement in trying ,MBRARY to block the hearings. Dick Cook was the man who did the [4] legwork, and dealt with Mr. Ford, and the other members of the Committee. STERN:: Did he report back as to any of his conversations with Gerald Ford? DEAN: To me, or to the White-- STERN: To any meeting that you were present at? DEAN: Well, of course. Yes. STERN: Give me an example. DEAN: Well, I can recall Dick coming back, and telling, for example, how Jerry was going to call a meeting of the minority members in Les Aaron's office, off the House floor, and really tell them what they should do on, the day of the vote, and how they should hold together, and things of this nature. STERN: And what should they do? They should block those hearings from going forward? DEAN: That's correct. BROKAW: Well, now, let me read you, if I may, Tom, what the transcript of the Ford confirmation hearings said. I won't read the whole thing. But the question is from Senator Byrd. "Were you in contact with anyone at the White House during the period of August to October, 1972, concerning 'the Patman Committee's possible investigation of the Watergate break-in? Answer, Mr. Ford: Not to my best recollection." Do you think Mr. Ford would have recalled that? Is that likely, that he wouldn't have recalled it? GERALD FORD LIBRARY [5] DEAN: I would be surprised, if he didn't recall it. He knew Dick Cook from a number of years. He knew Dick Cook worked at the White House. I would be very surprised, if he didn't know the White House's interest, in not having those hearings go forward. STERN: So, do you believe that Mr. Ford did not tell the truth, when he said to this committee under oath, that he did not recall any such contact? DEAN: I believe not recollecting is a very safe answer for him. STERN: My question is: Do you believe he lied? DEAN: I don't want to say that. 1'11 stand on the facts, as I know them. BROKAW: And what are the facts, as you know them, about the extent of Gerald Ford's knowledge of what had happened during Watergate? Did he perceive this as only a political problem, probably embarrassing to the White House, or did he understand the real nature of what was going on, what you were attempting to do? DEAN: Well, I don't think that anybody had briefed Mr. Ford, or Mr. Ford had any intimate knowledge as to what was going on. I think it was very clear that the White House didn't want this investigation going on, just before an election. I think that anybody who was in Washington during the days of Watergate and the cover-up didn't need much to know that FORD & LIBRARD CERALD [6] something wrong had gone on, and there were efforts to keep it quiet, but I don't know of any specific briefings that Mr. Ford was given; certainly I didn't give him any, nor do I know of Timmons, or Cook, or anybody else giving him any. BROKAW: This business about Gerald Ford possibly having some problems in the campaign contribution area has now received some attention. It's well known as well that the Special Prosecutor has been looking into campaign contribution areas in President Ford's political background. Has anyone from the Special Prosecutor's Office talked to you? DEAN: No. They have not: BROKAW: Have you volunteered any information to them? DEAN: No. I have not. BROKAW: of any kind. STERN: If Mr. Ford did not tell the truth in this matter, concerning the contact with the White House, and I don't want to harp on that, but it's an awfully important point. It's perhaps the most important point that emerged from the confirmation proceedings from Mr. Ford. If he didn't tell the whole truth on that occasion, that's a pretty big matter. DEAN: Yes, indeed, it is. STERN: So I want you to understand what you're saying to us here. It's important. in my book, just as the way they happened, the way I recall DEAN: Well, I'm reporting the facts, and they're reported GERATO FORD very vividly them happening, during those days. [7] STERN: Mr. Ford was about the last of the major Republican figures to stick with Mr. Nixon in 1974. Why do you think that was so? I mean, two weeks before the resignation, he was still saying Mr. Nixon was Innocent, will be proved so. DEAN: Well, he was then Vice President, as you recall, and it seems that was a rather natural thing for a man's Vice President to do, would be to stay with his President; and I would think that would be more a political explanation that anything as to involvement, or intimate knowledge, or anything of that nature, Carl. BROKAW: Can you think of any other role that Gerald Ford may have played in behalf of the White House, during the course of Watergate, apart from this attempt to block the Wright Patman Investigation? DEAN: Not to my knowledge. It's possible that came up in leadership meetings, when Mr. Ford was still the minority leader in the House, and was asked questions about what's the impact of the politics of Watergate having on the Congress, and things of that nature. But specific roles? This was one that came up, and as I report in the book, and is on a tape. The President wanted Mr. Ford to get involved, and to help to FORD stop those hearings. BROKAW: And there was no question that somebody did make LIBRARY contact with him, and that he did subsequently have meetings in an effort to block the Patman hearing? [8] DEAN: There's no question in my mind, Tom. BROKAW: John Dean, author of a new book called "Blind Ambition." Thank you very much. * # * END OF FIRST INTERVIEW DAY BROKAW: John Dean, one of the principal figures in Watergate, the man who testified against Richard Nixon, after serving him as counsel, and subsequently served time himself, now the author of a book called "Blind Ambition". We're here on "Today" this morning with Carl Stern and Mr. Dean to talk about some of his reflections on the time that he served, not in prison, SO much as he served in the White House as counsel to the President. Do you think that had there not been a John Dean, had you not come forward, in the fashion that you subsequently were forced to come forward, that the country would have found out about Watergate in any event? DEAN: Tom, I don't really know. It's a tough question. It's a, you know, 'what if' question, and it's hard to say. I think that much might have come out in some time. I'm not sure it would have come out, as quickly as it did, maybe not as completely, as it did. But I really can't, I can't give you a good, crystal ball answer on that one. STERN: In the book, even for those who followed Watergage closely, there are things in here that I never knew before DEPALO LIBRARY Some items in this folder were not digitized because it contains copyrighted materials. Please contact the Gerald R. Ford Presidential Library for access to these materials. Containment 139 they're going to get it, right?" Haldeman nodded his approval, and the President glanced at me. "That's an exciting prospect," I remarked flatly, mustering my hos- tility toward those who threatened the cover-up. I was trying to sound like a vicious prize fighter and doing a poor job, but I seemed to be pleasing the President. I was taking each apple he handed me, polish- ing it and passing it back. I felt the anger in the room subside. We turned to remaining prob- lems. Congressman Wright Patman's planned hearings on the Water- gate money transactions posed the biggest obstacle, I informed the Containment II 141 obtain the next batch of cash. On this note, he and Herb walked out of my office like pallbearers. Now Kalmbach was out; LaRue was in. Such encounters deflated my confidence, but Haldeman usually pumped me back up. A few days after the Kalmbach ceremony, he saw me in the hall and invited me into his office for a chat. Bob had become very friendly and increasingly open. He had to make a few quick calls, so I wandered around his office examining his mementos. He had a beautiful tapestry from the China trip which I admired, but T returned to my favorite artifacts: the three dried bullfrog car- 142 II BLIND AMBITION hearings. It's going to come to a head pretty soon. Patman's got to get his committee to vote him subpoena power, and it's a close ques- tion whether we have the votes to kill it. I've been talking to Bill Timmons* and Stans and Petersen on this thing, and Mitchell is work- ing on it, too. We think we can give our guys a leg to stand on by telling them that an investigation will cause a lot of publicity that will jeopardize the defendants' rights in the Liddy trial. But that may not be enough. We really need to turn Patman off." "Call Connally," said Haldeman "He Statement By Richard K. Cook / October 12, 1976 1 6:00 p. m. There are countless lies and only one fact in Mr. Dean's statement. Since the original Watergate hearings, at no time has Mr. Dean or anyone else ever hinted that I played such a role in connection with the Patman investigation. Nor have I ever been questioned by the several Watergate investigative Committees or the Special Prosecutor. Now in order to sell books, he has remembered something that he has never before chosen to recite. My family. and I deeply resent this cheap huckstering at our expense. Specifically, the one fact that rings true is that John Dean was the only person who ever suggested that I communicate with the then Minority Leader of the House, Gerald Ford. Former President Nixon never did. Haldeman never did. Ehrlichman did not. Bill Timmons never did. Despite John Dean's repeated and frantic requests, I never spoke with Mr. Ford about the need to deny Mr. Patman's request for subpoena power. With the gift of his own testimony and hindsight, I now know why John Dean was so worried, for he has admitted to being present at planning meetings that led to the Watergate break-in. Moreover, anyone who knew Mr. Ford and his style of leadership as House Minority Leader would agree that such intrusion by the White House would have been most unwelcome and shunned. Even on political issues -- which the Patman hearings were thought to be at the time -- Mr. Ford would have deeply resented suggestions that he assert his dominance over the Minority Member of a standing Committee at a President's request GERAL banking LIBRANI - 2 - If there is one single reason why the late Chairman Patman was denied his subpoena authority by a bipartisan majority of his own committee it is because John Dean lied to me in the presence of witnesses. In August or September, 1972, when it appeared that Chairman Patman was serious in his pursuit of the funding of the Watergate break-in, virtually everyone in Washington thought his action was politically motivated. I shared that opinion, but having been employed by the Banking Committee for the five years 1964-1969, I had a high respect for his investigative staff. For that reason, I asked two Minority staff members of the Committee to join me in a private meeting in the Executive Office Building with John Dean and Maurice Stans. At the outset of that one-hour meeting I asked Dean and Stans, "Is there any substance whatsoever to Mr. Patman's charges?" Dean assured us that there was none. He lied to me. He lied to two former colleagues of mine who were and are universally trusted by Democrats and Republicans alike in the Congress. From that day forward, despite Mr. Dean's frantic pleas, I stayed in contact with just two people, one staff man and a Republican member of the Committee -- and then only to check on the status and schedule of the Committee's deliberations. At the time, I had far more important legislative matters to attend to, as strange as that may seem today. GERAL LIBRARY But there is no need to take my word for it. All the press has to do, or the Congress for that matter, is to interrogate or seek sworn testimony from some 40 or 50 members and staff of the House Banking and Currency Committee. Surely, even John Dean's vicious lies and clever distortions would be hard pressed to explain a four-year conspiracy of silence on the - 3 - charge Gerald Ford prevented a full investigation by the House Committee on Banking and Currency. If that's not good enough, then we should ask the members and staffs of the Ervin Subcommittee, together with the Rodino and Eastland Committees, what their investigations of the Patman episode revealed. It seems to me that should settle once and for all that Mr. Dean has lied. After all of that, if the public still believes John Dean over the word of three Committees of the Congress, then he has brought off the stunt of the century. The key question remains: is John Dean telling the truth when he insinuates that President Ford distorted the truth under oath before the Judiciary Committees of the Senate and House ? There is no question in my mind that the President told the truth. And several score Democratic and Republican members of Congress and staff, I am confident, would confirm this. LIBRARY GERALD R. FORD November 27, 1973 MEMORANDUM To: Peter W. Rodino, Jr., Chairman From: Bob Trainor Re: Request to Reopen Ford Confirmation Hearings I have carefully reviewed the correspondence forwarded to you by Representative Elizabeth Holtzman requesting that the Ford confirmation hearing be reopened to permit clafi- fication of what she believes to be contradictory statements uttered by Mr. Ford concerning his involvement in the Watergate cover-up. In support of her request she references three allegedly inconsistent statements: (1) Mr. Ford's testimony before the Senate Rules Committee on November 5, 1973; (2) Mr. Ford's testimony before this Committee on November 26, 1973, and; (3) an affidavit submitted to this Committee on November 26, 1973, by Mr. William Timmons of the White House staff. An analysis of these three alleged inconsistent statements discloses that, in fact, they are not inconsistent at all. First, Ms. Holtzman cites Senator Robert Byrd's inquiry of Mr. Ford appearing on pages 128-29 of the printed Senate hear- ings. In pertinent part the inquiry and response are as follows: Senator Byrd: Were you in contact with anyone at the White House during the period of August Through October 1972 concerning the Patman Com- mittee's possible investigation of the Watergate breakin? Mr. Ford: Not to my best recollection. The best and, I think most authoritate answer to this question is one that Representative Jorry (sic) Brown submitted to the Ervin Committee. i FORD (Congressman Brown's statement was then submitted GERALD for the record) LIBRARY -2- I believe that Mr. Ford's response to Senator Byrd's question was predicated on Mr. Ford's belief that Senator Byrd wished to determine if any contact was made with the White House for the specific purpose of receiving instruc- tions or information relating to the possible Banking and Currency Committee investigation. While Mr. Ford's answer indicates that he could not recall any contact with the White House for the specific purpose of receiving instruc- tions, he expresses an awareness of Mr. Brown's contacts with the members of the Administration during this period. Furthermore, I believe that Ms. Holtzman's account of Mr. Ford's testimony before the Senate is misleading in the way in which it is presented. Ms. Hottzman recounts in the text of her letter Mr. Ford's answer to Senator Byrd's in- quiry in the following manner: Mr. Ford: Not to my best recollection. (At 284.) Almost daily I talked to Mr. Timmons, or someone in the Legislative Liaison Office of the White House but even in this case I do not recall any conversations concerning this particular matter. (At 286.) In truth, all matter appearing after the first sentence "Not to my best recollection (At 284.)" was in response to a second question offered by Senator Byrd appearing on pages 134-35 of the printed Senate hearings. Specifically, Senator Byrd's question and Mr. Ford's response is as follows: Senator Byrd: Mr. Ford, you undoubtedly would recall any conversation you might have during that period of August-October with the President, with Mr. Haldeman, Mr. Ehrlichman, Mr. Dean, or anyone at the White House, in connection with the proposed investigation by the Patman Committee. Do you recall any such conversations that would indicate that the White House wanted you to lend your efforts as a leader, to blocking such an in- vestigation? (emphasis added) & FORD Mr. Ford: I can say categorically, Senator Byrd, I never talked with the President about it, or GERALD with Mr. Haldeman, Mr. Ehrlichman, Mr. Dean. I LLERARY know I had no conversation with them now. Almost daily, during my period as Republican leader in the House, I talked with Mr. Timmons, or someone in the Legislative Liaison Office of the White House, but even in this case I do not recall any conversations concerning this particular matter. -3- It is my interpretation that Mr. Ford's answer was strictly in response to the question of whether he had received instruc- tions from the White House to lead the effort to block the Patman investigation rather than, as Ms. Holzaman would have you believe, in response to the question of whether he had ever, under any circumstances, discussed the Patman matter with Timmons. In light of the above, Mr. Ford's testimony before the Com- mittee on November 26, 1973, stating that while he never contacted the White House or Timmons specifically for the purpose of dis- cussing the possible Banking and Currency investigation, he may have briefly and generally mentioned the proposed investigation, does not in any way seem inconsistent with his earlier Senate testimony. An examination of the affidavit submitted by Mr. Timmons does present some question as to the total accuracy of Mr. Ford's statements relating to the Patman investigation. On the one hand, Ford admits that he may have generally discussed the matter with Timmons, while Timmons categorically denies ever having com- municated with Ford on the issue. The severity of this incon- sistency is slight when viewed in terms of the inability of Ford to recall specific instances where he may have spoken with Timmons about the matter. Ford spoke in terms of his conversations with Timmons on this issue as possible occurrences, stating "we might have discussed very generally the situation there," and "/H/e may have asked me thatstatus of " Ms. Holtzman suggests on page 3 of her letter that Mr. Timmons' affidavit is deficient in that it covers only the period from September 21 through October, rather than the entire period begin- ning in August. It appears that Mr. Timmons did not intentionally omit the month of August from his sworn statement but was asked only to consider the "Fall" of 1972. The significance of this one month omission is, at best, slight, since the vote taken by the Banking and Currency Committee considering the authorization of subpoena power did not take place until October 3, 1972. Any concerted effort, it could be argued, to obstruct the investigation certainly would have occurred just prior to the vote. Of Further note is the fact that the Banking and Currency Committee refused to authorize the subpoena power by a vote of 20 to 15. While all of the Republicans present for the vote (14) cast their ballot in opposition to the resolution, they were joined by six Democrata to defeat the resolution. It is apparent FORD therefore, that it took a bipartisan effort to defeat Mr. Reuss' resolution. and was not purely a Republican effort. GERALD -4- Ms. Holtzman refers in her letter to John Dean's testi- mony before the Ervin Committee and urges that he be called to testify before this Committee. John Dean, in his testimony, never referred to Mr. Ford by name as a target of White House pressure to obstruct the Banking and Currency investigation. Moreover, Congressman Garry Brown submitted to the Watergate Committee a lengthy statement detailing the Administration's involvement in the matter. He did not indicate that Ford was involved in any way nor was he ever called to appear before the Committee to explain his statement. In this regard, it is important to remember that this Com- mittee is in receipt of a letter from Senator Ervin stating that his Committee has uncovered no information that in any way bears on the qualifications of Mr. Ford to be Vice President of the United States. FORD i LIBRARY WASHINGTON DISTRICT OF COLUMBIA AFFIDAVIT I, WILLIAM E. TIMMONS, being duly sworn according to law, do hereby swear and affirm that during the Fall of 1972 I had no communications, written or oral, with Rep. Gerald R. Ford in regard to any proposal or intention of the Banking and Currency Committee of the House of Representatives to conduct an investigation and/or hold hearings on the Watergate. break-in and related issues. WILLIAM E. TIMMONS Sworn to and subscribed before me this 26th day of November, 1973. My commission expires may 31,1978 31, NOTARY PUBLIC FORD & LIBRARY 938839 957 but that I wasn't going to suggest filing any lawsuit or taking any action that was not well founded. I had talked with Mitchell, Ken Parkinson, and Paul O'Brien about the matter and Mr. Parkinson informed me that he was working on several potential counteractions. I requested that he submit a memo- randum to me as soon as possible because there was great interest at the White House in a counterattack, including the interest by the President. On September 11, 1972, Mr. Parkinson submitted his memorandum to me and after the memorandum, I redrafted his docu- ments for submission to Haldeman. I have submitted to the committee copies of both Mr. Parkinson's memorandum and the memorandum I submitted to Haldeman. [The documents referred to were marked exhibit No. 34-19.*] Mr. DEAN. You will note that my memorandum of September 12, 1972, to Mr. Haldeman has a "P" with a checkmark in the upper right-hand corner, which indicates that the document was forwarded directly to, or reviewed by, the President. I later learned that the President was pleased and wanted a full followup on the items in the memorandum. The markings on the memo are Mr. Haldeman's markings. It was also about this time, later July-early September, that I learned during a meeting in Mitchell's office that Mr. Rhoemer Mc- Phee was having private discussions with Judge Richey regarding the civil suit filed by the Democrats. I believe this fact was known to Mr. Mitchell, Mr. LaRue, Paul O'Brien, and Ken Parkinson-and later again by McPhee-that Judge Richey was going to be helpful whenever he could. I subsequently talked with Mr. McPhee about this, as late as March 2 of this year, when he told me he was going to visit the judge in the judge's rose garden over the weekend to discuss an aspect of the case. MEETING WITH THE PRESIDENT-SEPTEMBER 15, 1972 On September 15 the Justice Department announced the handing down of the seven indictments by the Federal grand jury investigat- ing the Watergate. Late that afternoon I received a call requesting me to come to the President's Oval Office. When I arrived at the Oval Office I found Haldeman and the President. The President asked me to sit down. Both men appeared to be in very good spirits and my reception was very warm and cordial. The President then told me that Bob-referring to Haldeman-had kept him posted on my han- dling of the Watergate case. The President told me I had done a good job and he appreciated how difficult a task it had been and the Presi- dent was pleased that the case had stopped with Liddy. I responded that I could not take credit because others had done much more diffi- cult things than I had done. As the President discussed the present R. FORD status of the situation I told him that all that I had been able to do was to contain the case and assist in keeping it out of the White House. GERALD I also told him that there was a long way to go before this matter would end and that I certainly could make no assurances that the day LIBRARY would not come when this matter would start to unravel. *See p. 1173. 958 Early in our conversation the President said to me that former FBI Director Hoover had told him shortly after he had assumed office in 1969 that his campaign had been bugged in 1968. The President said that at some point Te should get the facts out on this and use this to counter the problems that we were encountering. The President asked me when the criminal case would come to trial and would it start before the election. I told the President that I did not know. I said that the Justice Department had held off as long as possible the return of the indictments, but much would depend on which judge got the case. The President said that he certainly hoped that the case would not come to trial before the election. The President then asked me about the civil cases that had been filed by the Democratic National Committee and the common cause case and about the counter suits that we had filed. I told him that the lawyers at the reelection committee were handling these cases and that they did not see the common cause suit as any real problem before the election because they thought they could keep it tied up in discovery proceedings. I then told the President that the lawyers at the reelec- tion committee were very hopeful of slowing down the civil suit filed by the Democratic National Committee because they had been making ex parte contacts with the judge handling the case and the judge was very understanding and trying to accommodate their problems. The President was pleased to hear this and responded to the effect that, "Well, that's helpful." I also recall explaining to the President about the suits that the reelection committee lawyers had filed against the Democrats as part of their counteroffensive. There was a brief discussion about the potential hearings before the Patman committee. The President asked me what we were doing to deal with the hearings and I reported that Dick Cook, who had once worked on Patman's committee staff, was working on the problem. The President indicated that Bill Timmons should stay on top of the hearings, that we did not need the hearings before the election. The conversation then moved to the press coverage of the Watergate incident and how the press was really trying to make this into a major campaign issue. At one point in this conversation I recall the President telling me to keep a good list of the press people giving us trouble, because we will make life difficult for them after the election. The conversation then turned to the use of the Internal Revenue Service to attack our enemies. I recall telling the President that we had not made much use of this because the White House did not have the clout to have it done, that the Internal Revenue Service was a rather demo- cratically oriented bureaucracy and it would be very dangerous to try any such activities. The President seemed somewhat annoyed and said that the Democratic administrations had used this tool well and after the election we would get people in these agencies who would be re- sponsive to the White House requirements. The conversation then turned to the President's postelection plans to replace people who were not on our team in all the agencies. It was at this point that Haldeman, I remember, started taking notes and he also told the President that he had been developing information on which people should stay and which should go after the election. I recall that several days after my meeting with the President, I was talking to Dan Kingsley, who was in charge of developing the list for GERALD 959 Haldeman as to people who should be removed after the election. I told Kingsley that this matter had come up during my conversation with the President and he said he had wondered what had put new life into his project as he had received several calls from Higby about the status of his project within the last few days. The meeting ended with a conversation with the President about a book I was reading. I left the meeting with the impression that the President was well aware of what had been going on regarding the success of keeping the White House out of the Watergate scandal and I also had expressed to him my concern that I was not confident that the coverup could be maintained indefinitely. BLOCKING THE PATMAN COMMITTEE HEARINGS I would next like to turn to the White House efforts to block the Patman committee hearings. As early as mid-August 1972, the White House learned through the congressional relations staff that an inves- tigation was being conducted by the staff of the House Banking and Currency Committee, under the direction of Chairman Patman, into many aspects of the Watergate incident. The focus of the investigation at the outset was the funding of the Watergate incident, and other possible illegal funding that may have involved banking violations. The White House concern was twofold: First, the hearings would have resulted in more adverse preelection publicity regarding the Watergate, and second, they just might stumble into something that would start unraveling the coverup. The initial dealings with the Patman committee and the reelection committee were handled by Mr. Stans and Mr. Parkinson. However, as the Patman committee proceeded. Stans called for assistance from the White House. I was aware of the fact that the Patman investi- gators had had numerous conversations with Parkinson and the inves- tigators themselves came to the Republican National Convention to interview Stans on August 25, 1972. Upon Mr. Stans' return from the Republican Convention he met with the investigative staff of the Pat- man committee, which I believe occurred on August 30. He was accompanied at both these interviews by Mr. Parkinson. At some point in time during these investigations Mr. Parkinson was put in touch with Congressman Garry Brown. who was a member of the Banking and Currency Committee. To the best of my recollec- tion, this may have resulted from discussions between members of the White House congressional relations staff with the Republican mem- bers of the Banking and Currency Committee to determine who would be most helpful on the committee, and Brown indicated his willing- ness to assist. On September 8, Congressman Brown sent a letter to the Attorney General regarding the forthcoming appearance of Secretary Stans and others before the Patman committee. I have submitted to the com- mittee a copy of this letter, which was. in fact. drafted by Mr. Parkin- son for Congressman Brown. [The letter was marked exhibit No. 31-20.*] Mr. DEAN. It is my recollection that Secretary Stans was scheduled to appear before the Patman committee for formal testimony on Sep- *See p. 1181. 9:60 tember 14. Prior to Parkinson's drafting the letter for Congressman Brown, I had been asked to discuss the matter with Henry Petersen, which I did. I told Petersen of the problem and asked him for his feel- ing about Stans and others appearing before the Patman committee and what effect that might have on either the grand jury or the indicted individuals once the indictments were handed down. I recall that Petersen had very strong feelings that it could be very detrimental to the Government's ability to prosecute successfully the Watergate case, but he said he would have to give some thought to responding to Con- gressman Brown's letter. I had several additional discussions with Petersen and later with the Attorney General, when Petersen indicated he did not think he could respond before the scheduled appearance of Stans on September 14. The Justice Department did not feel that it could write such a letter for one individual regarding the Patman hearings and was very reluc- tant to do so. I also had conversations with Mitchell about this and reported the matter to Haldeman and Ehrlichman. The Justice De- partment felt that for them to write such a letter would look like a direct effort to block the hearings and I frankly had to agree. There- fore, no response was sent prior to the scheduled September 14 appearance of Stans and Mr. Parkinson himself informed the com- mittee that Stans would not appear because he felt it would be detri- mental to the then pending civil and criminal investigations. It was after my September 15 meeting with the President where this matter had been briefly and generally discussed and, as the subse- quent activities on the Patman committee became more intense that the White House became more involved in dealing with the Patman committee. On September 25, Chairman Patman announced that he would hold a vote on October 3 regarding the issuing of subpenas to witnesses. With this announcement the White House congressional relations staff began talking with members of the committee as well as the Republican leadership of the House. I recall several conversations with Mr. Timmons and Dick Cook regarding this matter as well as conversations with Haldeman. Tim- mons and Cook informed me that there was a daily change in the list of potential witnesses and the list was ever growing and beginning to reach into the White House itself. In discussing it with Haldeman I asked him how he thought the Patman hearings might be turned off. He suggested that I might talk with Secretary Connally about the matter because Connally would know Patman as well as anybody. I called Secretary Connally and told him the reason I was calling. He said that the only thing he could think of. the only soft spot that Pat- man might have, was that he had received large contributions from a Washington lobbyist and had heard rumors that some of these contri- butions may not have been reported. I discussed this matter with Bill Timmons and we concluded that several Republicans would probably have a similar problem so the matter was dropped. At this time I cannot recall the name of the lobbvist whom Secretary Connally said had made the contributions to Mr. Patman. Timmons and I had also discussed that probably some of the members of the Banking and Currency Committee would have themselves potential campaign act violations and that it probably FORD & DERALO LIBRARY would be worthwhile to check out their reporting to the Clerk of the House. I told Timmons I would look into it. 961 On September 26 I received a report I had requested from Parkin- son after he had one of his associates check the reports of the members of the committee with the Clerk of the House. After I received the document from Parkinson, a copy of which I have submitted to the committee, I decided it would be a cheap shot to get into anything of this nature. [The document referred to was marked exhibit No. 34-21.1] Mr. DEAN. Accordingly, I never reviewed the document that Park- inson submitted and I have not reviewed it to this day. While the White House had received through its congressional re- lations staff informal reports as to who was likely to be subpenaed, Chairman Patman made public his list on October 2, 1972. The indi- viduals for whom subpenas were to be requested was extensive and in- cluded several people who had varying degrees of knowledge regard- ing the Watergate and related matters. This list, for example, included Alfred Baldwin, Jack Caulfield, persons from the finance commit- tee, Sally Harmony, Fred LaRue, Clark MacGregor, Mr. Magruder, Mr. Mardian, Mr. Mitchell, Rob Odle, Bart Porter, Hugh Sloan, Stans, Timmons, and myself. I have submitted to the committee a copy of the entire list. [The document referred to was marked exhibit No. 34-22.2] Mr. DEAN. As the names on the list had continued to evolve, it be- came increasingly apparent that the White House did not want the hearings to be held. For example, Bill Timmons took a much greater interest in the project when he realized early on that his name was among those who would be called. I say this not because Timmons had any reason not to appear because I know of no illegal or improper activity on Timmons' part, rather he had been working to prevent the hearings from occurring in the first instance through his conversations with the Republican leaders and members of the committee. This he knew would put him in an awkward position. I began receiving increasing pressure from Mitchell, Stans, Parkin- son and others to get the Justice Department to respond to the Sep- tember 8 letter of Congressman Brown as a vehicle that Congressman Brown could use in persuading other Republicans not to vote in favor of the subpenas. Congressman Brown felt that with this document in hand he could give the Republicans and others something to hang their vote on. I had continued my conversations with Henry Petersen and after the indictments had been returned he said that indeed he did feel that the Justice Department should issue such a letter because of the potential implications of the breadth of the Patman hearings. The let- ter was sent on October 2, 1972. I have submitted to the committee a copy of Congressman Brown's letter 3 and Assistant Attorney General Petersen's response. [The document referred to was marked exhibit No. 34-23.4] : Mr. DEAN. A number of people worked on getting the votes necessary GERALD FORD to block the Patman committee hearings. Mr. Timmons discussed the matter with the House Republican leaders who agreed to be of assist- ance by making it a matter for the leadership consideration. which resulted in direction from the leadership to the members of the com- LIBRARY 1 See p. 1183. 2 See p. 1190. a Congressman Brown's letter appears as exhibit 34-20. $ See p. 1194. 962 mittee to vote against the hearings. I was informed that Congressman Brown had been working with several members on the Democratic side of the Patman committee to assist in voting against the hearings or as an alternative not to appear for the hearings. Timmons informed me that he was also in direct contact with one of the leaders of the south- ern delegation who was being quite helpful in persuading the south- erners on the committee not to vote for the subpenas or in the alterna- tive not to appear at the meeting on October 3. Also Mitchell reported to me that he had been working with some people in New York to get the New Yorkers on the committee to vote against the hearings. He told me, and I cannot recall now which members of the New York delegation he referred to, that he had assurances that they would either not show up or would vote against the hearings. I in turn passed this information on to Timmons, but I did not tell him the source of my information. On October 3 the vote was held and the subpenas were defeated by a vote of 20 to 15 and another sigh of relief was made at the White House that we had leaped one more hurdle in the continuing coverup. On October 4, however, Chairman Patman requested a GAO in- vestigation and I was asked by Stans what this would mean. I told him that this would be primarily between himself and the GAO but that since GAO had no subpena power to compel testimony, the scope of their investigation would have limits. He said he felt that he could work with Elmer Staats, who was an old and good friend, and not let this matter get out of hand with the GAO. On October 10, Chairman Patman decided to proceed without subpena power, and sent letters to MacGregor, Stans, Mitchell, and mvself. Everybody who received such a letter declined to appear and Patman held his hearings with empty witness chairs and, as I recall the press accounts, "lectured" the missing witnesses. THE SEGRETTI MATTER I would now like to turn to the so-called Segretti matter. I have been informed by committee counsel that the subject of alleged po- litical sabotage will be taken up in subsequent hearings. However, I have been asked to explain in full the pattern of coverup which evolved in connection with the Watergate and related matters and my explanation would be less than complete in presenting my knowledge of the subject if I were to omit the so-called Segretti matter. While the Segretti matter was not directlv related to the Watergate, the coverup of the facts surrounding Mr. Segretti's activities was consistent with other parts of the general White House coverup which followed the Watergate incident. I will not go into extensive detail at this time, rather I will give the highlights of the pattern that was followed regarding the dealings of the White House with Mr. Segretti. I first heard of Mr. Segretti when Gordon Strachan called me in late June and told me that the FBI had called a friend of his by the name of Donald Segretti, and requested to interview him in connection with the break-in at the Democratic National Committee. Strachan asked if I would meet with Segretti. I told him that I would and Strachan arranged a meeting at the Mayflower Hotel where Segretti was staying. Strachan gave me a very general description of Mr. Se- R. FORD LIGHT 1509 Senator MONTOYA. Now, referring to the President's news conference on August 29, 1972, and I will quote from that conference, a reporter asked this question: Mr. President, would not it be a good idea for a special prosecutor, even from your standpoint, to be appointed to investigate the contribution situation and also the Watergate case? Answer: The PRESIDENT. With regard to who is investigating it now, I think it would be-it would be well to know that the FBI is conducting a full field investigation. The Department of Justice, of course, is in charge of the prosecution and present- ing the matter to the Grand Jury. The Senate Banking and Currency committee- I presume he meant the House— is conducting an investigation. The General Accounting Office, an independent agency, is conducting an investigation of those aspects which involve the cam- paign spending law. Now with all these investigations that are being conducted, I don't believe that adding another Special Prosecutor would serve any useful purpose. Now, you stated before that there was a move at the White House to try to stop the House Banking and Currency investigation, and you presented testimony as to what went on in the White House in the background. Now, was this going on under auspices of anyone close to the President? Mr. DEAN. Well, of course, on September 15 I had had a discussion with the President about this. He had asked me about the Banking and Currency Committee investigation. He had asked me who was handling it for the White House. I had reported that Mr. Richard Cook was the man who had formerly worked with the Banking and Cur- rency Committee as a member of the minority staff. was very familiar with the members of the committee, and at the conclusion of my report I recall him saying that he wanted Mr. Timmons to get on top of the matter and be directly involved in it also. Senator MONTOYA. And that was about the time that he was making this statement to the press? Mr. DEAN. Well, that preceded-that is correct. Of course, it was September 15 that that arose in his office directly and we are talking about a press conference in August, and during the following weeks, of course, there was an ever-increasing effort of the White House to deal with the Patman committee hearings as I have so testified. Senator MONTOYA. When did the President tell you this? Was it before August 29 when he made the statement at the press conference or after? Mr. DEAN. It was after, September 15. Senator MONTOYA. It was approximately 17 days later. Mr. DEAN. That is correct. Senator MONTOYA. 17 or 13 days. In the same, and as he went along, the President said as follows: 2. FORD The other point that I should make is that these investigations, the investiga- tion by the GAO, the investigation by the FBI, by the Department of Justice have at my direction had the total cooperation of the-not only the White House but GERALD also of all agencies of the government. LIBRARY 1510 I want you to pay special attention to this. This is quoting the President still. In addition to that, within our staff under my direction Counsel to the Presi- dent, Mr. Dean, has conducted a complete investigation of all leads which might involve any present members of the White House staff or anybody in the Govern- ment. I can say categorically that his investigation indicates that no one in the White House staff, no one in this Administration presently employed was involved in this bizarre incident. Now, I ask you this question: With respect to any project that you handled directly for the President where a report was required wouldn't you assume that if this is true that you would have been required to file a report? Mr. DEAN. Yes, sir. Senator MONTOYA. And also if, assuming that this was true, wouldn't that report be available at the White House? Mr. DEAN. That is correct. Senator MONTOYA. And so assuming the correctness of the Presi- dent's statement then it necessarily follows that if you made a complete investigation at his behest, and for him, that the President should produce that Dean report? Mr. DEAN. I already believe that the White House has indicated there was no Dean investigation. I think that is one of the inoperative statements. [Laughter.] Senator MONTOYA. But it is still your testimony that you were not requested by the President to make a report to him or to conduct this investigation. Mr. DEAN. Not at that time, Senator; that is correct. Senator MONTOYA. All right. I want to go into this a little further the matter of the San Clemente conferences. Now, did you discuss specifically with Mr. Haldeman, with Ehrlich- man and others who might have been attending their matters directly dealing with the so-called coverup? Mr. DEAN. Yes, we did. Senator MONTOYA. Now, will you as succinctly as possible, as briefly as possible, relate for the record now just exactly what those discus- sions were with respect to the coverup? Mr. DEAN. Well, we had a lengthy discussion ranging over 2 days, and I have estimated between 12, 14-10, 12, 14 hours—I do not know how many hours totally were spent in a discussion, that basically were focusing on how to deal with this committee. At the end of that dis- cussion, on the last day of the discussion, on Sunday afternoon, what I described as the bottom line question came up, because everything depended upon the continued silence of the seven individuals who had either been convicted or had pleaded guilty. Would they remain silent during the duration of these hearings? I was asked that question. I said, I cannot answer that question, because I do not know. All I know is that they are still making money demands. Preceding that, there had been a good bit of discussion between Mr. Haldeman and Mr. Ehrlichman and back and forth to Mr. Mitchell as to who was going to raise the necessary money. I reported to them that R. 03 FORD there was nothing I could do, this was out of my hands, that Mr. LIBRARY Firefighting 53 man of the Senate Judiciary Committee, had become even friendlier to the Administration since Mitchell had assured him he would face no Republican opposition in his reelection campaign. He chaired the Kleindienst hearings to our advantage. When Colson finished chewing on Kleindienst, we began assessing in earnest. We faced the nearly impossible task of proving a negative- of showing there was no collusion involved in the ITT settlement. After reviewing the documented history of the ITT case, I knew that Dita Beard's memo conveyed a hopelessly inaccurate, almost naïve view of the Administration's workings. She appeared to be puff- ing up her own influence by ignoring the Breaking Point 199 Bud looked at me stoically. "Listen, John, if the damn thing's going to come out, it's going to come out." Bud had been a tough cookie at the White House; now he looked like Sir Thomas More facing the executioners bravely. "I'll tell you something. I haven't really had a good day since I went over there to Transportation. I'm troubled by my confirmation hearings up in the Senate. I think I may have crossed the line up there. I tell you, I thought about saying this was all national-security stuff, but I decided just to sort of dodge it. I don't even like to read back over my testimony." He's worried about perjury, too, I thought. I decided to get him off the subject. "How strong is Hunt's hand on this, Bud? Did John ap- prove this Ellsberg thing?" are A12 THE WASHINGTON POST R1 Thursday, Sept. 23, 1976. Dean Book Accuses Ford on Watergate By Jules Witcover he said "even in this case I do not Washington Post Staff Writer recall any conversations concerning Former Nixon aide John W. Dean this particular matter." III says in his soon-to-be-published Jake Lewis, the House Banking and book that he was told Gerald R. Ford Currency Committee staff aide who had knowledge of, and discussed tac- worked most closely with Patman. on ties in, the White House's effort to the Watergate matter. said yesterday block- Watergate investigation be- that after the Nixon White House fore the 1972 presidential election. tapes were made public. Patman tried Dean, in his book, "Blind Ambi- to get the Senate Watergate committee tion," says former Nixon congres- to subpoena tapes from Sept. 15 to sional liaison chief William E. Tim- Oct. 3, 1972. He hoped, Lewis said, they would reveal whether Nixon's mons told him he (Timmons) in Sep- orders had been carried out, and by tember, 1972, had discussed with Mr. whom. Ford the possibility of trying to black- But the tapes still have not been mail Rep. Wright Patman (D-Tex.) made public, he noted. Concerned into dropping his planned inquiry. that they might be lost or destroyed Lewis said, Patman on Aug. 8, 1974 The idea was rejected by Mr. Ford the day President Nixon announced and Timmons, Dean says. his resignation, wrote to the House Timmons, now a Washington lobby- Judiciary Committee urging that all ist, said yesterday he did have a con- tapes be kept intact. versation with Dean about using a re- Dean writes in his book, to be pub- port of an alleged illegal campaign lished in November by Simon and contribution to deter Patman. But Schuster, that former Gov. John B. Timmons said he rejected it outright. Connally of Texas told him he had Timmons said he never discussed that heard in Texas that Patman, now de- ceased; may have "received some con- or any other tactic for sidetracking the impending investigation with Mr. tributions from an oil lobbyist" that he had not reported. Ford. Dean says he asked the Nixon cam- At the White House, Richard B. paign committee's lawyer, Kenneth Cheney, President Ford's chief of Parkinson, to check into campaign con- staff, said last night the White House tributions to Patman and other mem- would stand on Mr. Ford's testimony before two congressional committees bers of the committee, and had passed Connally's idea on to Timmons, in 1973 that he had never had any "Timmons, who met regularly ith conversations with anyone in the Jerry Ford, had explored with him White House about blocking Patman's proposed investigation. Connally's suggestions about Patman," Dean writes in the heek. BERALD FORD LIBRARY MEMORANDUM THE WHITE HOUSE WASHINGTON B. Bill Stanton: This is my recollection of the one and only time Ford ever had a meeting with the Minority Members of the B&C Cmte with prespect to the Patman investigation: It was members of the Cmte who asked to meet with Ford. Forfd did not request the meeting. The reason members wanted to meet with im, this was usual procedure when we were to take a position where other members of the minority (not members of the Cmte) might be affected by a minority Cmte action. I don't know who asked him, but pex presume it was Bill Widnall. At the meeting Ford mostly sat, smoked his pipe and listened. The discussion whent along the following line: If Patman limited probe just to laundered money in South America, the Cmte had no objection. The Cmte was da adamantly opposed to unlimited use of subpeone power which gave the imporession that it was a political withc hunt two days before adjournment of Congress and one month before election. Some members of the Cmte felt by simply not showing up, they would lack a quorum. It was them unanimously decided that if Patman asked for unlimited subpona power, the members would vote no and at the smae time ask Patman, if his probe were not political, to call the members back the day after the election and we would be glad to cooperate. Ford's only remarks were to concur with our decision that a month's delay made sense and that we were taking the right action. Wright Patman never accepted the minority members' challenge and never called a meeting. The best of my recollectionxwk shortly after this instance, Senator Kennedy looked at the subject matter and decided not to call for an investigation basically becuase he felt it was not under the jurisdiction of his committee. Mr. Dean, whatever he says in his book, speaks for himself. I know of at least 1/2 k dozen highly respected present and former Members of Congress who will verify my statement. 11 is FORD GERALD LIBRARY EXHIBIT NO. 1. CARRY BRI WN PASHINGTON DIFICE 30 DISTRICT, MICHIGAN 404 CANNON HOUSE Orrice Bunding WASHINGTON, D.C. 20515 COMMITTEE ON TELEPHONE: (202) 225-5011 BANKING AND CURRENCY Congress of the United States DICTRICT OFFICE: COMMITTEE ON ROOM 2-1-36 FEDERAL C. NTER GOVERNMENT OPERATIONS House of Representatives 74 NORTH WASHINGTON BATTLE CREEK, MICHIGAN 49017 JOINT COMMITTEE ON TELEPHONE: (616) 962-1 51 Washington, D.C. 20515 DEFENSE PRODUCTION August 31, 1972 The Honorable Wright Patman Chairman House Committee on Banking and Currency 2129 Rayburn House Office Building Washington, D. C. Dear Mr. Chairman: I was shocked and dismayed to learn that yesterday certain staff members of the Banking and Currency Committee conducted an ad hoc hearing regarding the financial transactions involved in the so-called Watergate bugging incident and called former Secretary Stans as a witness without any authority to do so and, even more disturbing, members of the Committee were not notified of this session nor were we given an opportunity to be present. Surely I do not need to remind you of the Rules of the House and the Rules of the Committee on Banking and Currency which expressly prohibit the very type of proceeding which occurred; the Rules of the House applicable being: Jefferson's Manual and Rules of the House of Representatives Rule XI., $735. (f) (1) Each committee of the House (except the Committee on Rules) shall make public announcement of the date, place, and subject matter of any hearing to be conducted by the committee on any measure or matter at least one week before the commencement of that hearing, unless the committee determines that there is good cause to begin such hearing at an earlier date. If the committee makes that determination, the committee shall make such public announcement at the earliest possible date. Such public announcement also shall be published in the Daily Digest portion of the Congressional Record as soon as possible after such public announcement is made by the committee. (Emphasis added) Rule XI., 8735. (h) Each committee may fix the number of its members to constitute a quorum for taking testimony and receiving evidence, which shall be not less than two. (Emphasis added) And, the applicable Rules of the Committee on Banking and Currency being: Rules of Procedure of the Committee on Banking and Currency Rule 3. A majority of the members of the Committee shall BERALD FORD LIBRAR The Honorable Wright Patman - 2 - August 31, 1972 constitute a quorum for the purpose of reporting any bill or making decisions on any matters before the Committee; two or more members of the Committee shall be present for the purpose of hearing witnesses and taking testimony. (Emphasis added) Rule 4. The date, time, place, and subject matter of all hearings shall be publicly announced at least one week before the commence- ment of that hearing, unless the chairman and ranking minority member determine that there is a good cause to begin the hearing at an earlier date to the extent feasible. If the chairman and ranking minority member make that determination, the committee shall make such public announcement and provide telephonic and written notice to the members of the Committee, at the earliest possible date. Such public announcement also shall be published in the Daily Digest portion of the Congressional Record as soon as possible after such public announcement is made by the committee. * * * Rule 12. Seven days prior notice shall be given to all members of the Committee of any proposed Committee or subcommittee inquiríes and investigations other than routine requests for reports and information in connection with bills and resolutions pending before the Committee. Similar notice shall be given to all member (sic) of the Committee of any proposed studies and reports by the Committee or any subcommittee, and of any print or document to be filed with the Clerk of the House or printed as a House document. Such prints or documents shall clearly indicate that the views expressed therein do not reflect the views of any member of the Committee not a signatory thereto. * * * I will not question, although many may, the wisdom of our Committee becoming involved in still another investigation of this matter although several other investigations of the incident are already in progress. However, I do lodge my serious protest to such an investigation being initiated and conducted. by staff personnel without any authorization from the Committee and even without at least this member's knowledge. I demand that the staff be instructed to immediately cease and desist from any further investigation of this matter until such time as you have called the Committee together for the purpose of discussing and determining appropriate Committee action. The Watergate incident is a serious matter and is deserving of as full and complete an investigation as is possible. I totally concur in the need and FORD & LIBRARY OERALD The Honorable Wright Patman August 31, 1972 the right for the Congress, as well as the public, to be fully informed regarding all of its ramifications. In fact, the very nature of this matter dictates each member's personal involvement, not the involvement of only staff members engaging in a frolic of their own. Respectfully, GARRY BROWN cc: All Members of Committee on Banking and Currency FORD & LIBRARY CERALD EXHIBIT NO. 2. GARRY BROWN WASHINGTON OFFICE: 30 DISTRICT, MICHIGAN 404 CANNON House Or rice BUILDING WASHINGTON, D.C. 20515 COMMITTEE ON TEITPHONE: (202) 225-5011 DANKING AND CURRENCY Congress of the United States DISTRICT OFFICE: COMMITTEE ON ROOM 2-1-36 FEDERAL CENTER COVERNMENT OPERATIONS Douse of Representatives 74 NorTH WASHINGTON BATTLE CREEK, MICHIGAN 49017 TELEPHONE: (616) 962-1551 JOINT COMMITTEE ON Washington, D.C. 20515 DEFENSE PRODUCTION September 5, 1972 The Honorable Wright Patman Chairman House Committee on Banking and Currency 2129 Rayburn House Office Building Washington, D. C. Dear Mr. Chairman: Thank you for your letter of explanation relative to the activities being carried on by staff members of the Banking and Currency Committee relative to the Watergate affair and your interpretation of your authority under the Rules of the House and the Rules of the Committee concerning your authority to assign staff work and authorize staff investigations in the absence of any Committee action. At the outset, let me put aside once and for all the suggestion you have incorporated in your letter that my objection to the conduct of this inves- tigation by staff members is an "attack" upon the investigation itself and the jurisdiction of our Committee to conduct such an investigation. You seem to have missed the thrust of my letter wherein I repeatedly objected to the investigation by staff members without the authorization of the Committee and even without the Committee's knowledge. Specifically, I said: I will not question, although many may, the wisdom of our Committee becoming involved in still another investigation of this matter although several other investigations of the incident are already in progress. However, I do lodge my serious protest to such an investigation being initiated and conducted by staff personnel without any authorization from the Committee and even without at least this member's knowledge. And, in my letter to you of August 31, 1972, I further said: The Watergate incident is a serious matter and is deserving of as full and complete an investigation as is possible. I totally concur in the need and the right for the Congress, as well as the public, to be fully informed regarding all of its ramifications. In fact, the very nature of this matter dictates each member's personal involvement, not the involvement of only staff members engaging in a frolic of their own. In further critique of your response of September 5, 1972, let me state that the GERAL# FORD LIBRARY The Honorable Wright Patman 2 1.0 September 5, 1972 activities of the staff members in interrogating Mr. Stans cannot be con-- sidered "normal staff procedures," under any circumstance as you have suggested, and such activity on the part of staff members with respect to a matter which you have described as one "carrying ... serious political implications" can only be viewed as highly unusual, especially so in the absence of any Committee authorization to initiate an investigation. Your letter attempts to suggest that Mr. Stans somehow imposed himself upon the staff members as a witness when you say that "Mr. Stans appeared volun- tarily to answer questions at my request.' I trust you don't believe that Mr. Stans and I are politically naive enough to accept the proposition that his refusal to appear at your request would have been benignly neglected and silently received by you. In addition, I take serious issue with the innuendo incorporated in your letter to the effect that I consider an investigation of the Watergate incident às a mere "frolic." The use of that term in my original letter, and as again referenced herein, could only have been interpreted by any reasonable person as suggesting that staff members do not have the same obligation of accountability to constituents and the people of the country as a whole as do the Members of Congress. To that extent they have much greater freedom of activity, and I need not point out to you that on occasion this freedom of activity of staff members has even reached the point of being irresponsible. In summary, I restate my basic contention; namely, that the investigation of the Watergate incident to the extent that it falls under the jurisdiction of our Banking and Currency Committee should be an investigation discussed with and authorized by the full Committee; and, to the extent testimony, answers to questions, or whatever you wish to call it, are to be taken from persons having knowledge about the matter, Committee members shall be fully apprised and informed of such plans and intentions. For the reasons above set forth, I request that you immediately call a meeting of the Committee for the purposes of informing the members of the status of the investigation which has been conducted by staff members as well as the areas of concern within the jurisdiction of the Committee which you feel should receive further attention from the Committee and its staff. Inasmuch as we have a meeting scheduled for tomorrow morning at 10:00 A.M., I request that before continuing with the markup of the Housing Bill we GERALB FORD LIBRARY The Honorable Wright Patman September 5, 1972 devote such time in Executive Session as is necessary to properly apprise the Committee members regarding this matter. Rany Respectfully, GARRY BROWN Burn I concur in the request for a meeting for the purposes stated as set forth in the last paragraph of Representative Brown's letter. Biel Fremal Colburn J. Ben Prin assur bluillesms John H Rospect Norm F. Per FORD i LIBRARY GERALD LG:22-A November 5, 1973 The Honorable Gerald R. Ford H-230, The Capitol Washington, D. C. Dear Jerry: Pursuant to our telephone conversation today, I am forwarding to you herewIth a copy of the sworn statement I filed with the Ervin Committee relative to the allegations made by Mr. Dean when he testified before that Committee early this summer. Although my statement makes no direct reference to Dean's allegations concerning Involvement of the Republican leadership in the House of Representatives relative to the Patman hearings, the statement does correctly reflect the general sltuation which existed at that time. As a practical matter, Mr. Dean at no time during the course of his direct testimony before the Ervin Committee alleged that you personally had been in any way Involved, his references In that testimony having been to "the Republican leadership of the House" (page 106 of his testimony); "Republican leaders" (page 188); and, "House Republican leaders" (page 109). Rather than In connection with Dean's testlmony, I believe your name became associated with the Patman hearings through press reports at that time to the effect that you had mot with the Republican members of the Banking and Currency Committee. Of course, as you know, you did meet with us on two occasions, but each of those meetings had been requested by Mr. Widnall, the ranking member, and the other Republican members of the Committee primarily for the purpose of apprising you of the slauation which existed and to seek any advice which you and Mr. Arends might care to proffer. In addition and as was noted by the media at that time, at the request of the Republican members of the Banking and Currency Committee you sent a letter to all Republican members of the Committee urging them to be present for the vote on October 3, stating It to be your opinion, and properly so, that our system of criminal Justice dictated against Congressional hearings while criminal proceedings were pending. Of course, this is the position taken by even Archlbald Cox when he urged the Ervin Committee to suspend Its hearings earller FORD & GERALD LIBRARY The Honorable Gerald R. Ford - 2 - November 5, 1973 this year. I regret that I cannot provide a more substantive response to any suggestions which may have been made that you were In any way Improperly Involved In the Banking and Currency Committee action, but as you know It Is next to Impossible to "prove the negative." With best regards, Sincerely, GARRY BROWN Enclosure LIBRARY GERALD Amusements Financial Classified Metroe Comics: Obituarion Crossword Sportax Editorials A22 Style: Fed. Diary TV-Radios Citasified 323-62008 15a Beyond Washington, OCTOBER 4, 72 Phone 223-6000 Circulation 223-6100 Maryland and Virginia 10c Bugging Hearings Rejected House Panel Defeats Bid By Patman By Bob Woodward and Carl Bernsteim Washington Post Staff Writers andi The House Banking and and Currency Committee, aftęr began a week of heavy Republican estigation lobbying, voted: 20 to 15 escape yesterday against holding ight D.C. public hearings. on the including Wafergate bugging incident widely and alleged irregularities in figures President: Nixon's re-elec- tion campaign financing. which in- AIL 14 Republicans in attend- nvieted of anee, four Southern Demo. adieted on crats and two other Democrats the large voted: against Committee the cene Chairman Wright Patman's r BP Bob: Burchette-The Washington Postr quest: for the hearings. got under Reps. William At Barrett (II-Pa.). left, and. reil call prior to: the vote. one whether tom They thus apparently ended. Jons- that Wright Patman (D-Tex.). await. outcome of conduct hearings im the Watergate case. any chance of & full airing been the jail fore election day of issues suspi- wingly. as- stemming from: the now cele of derei- time the W elfare Compromise Killed; brated break-ins and alleged bugging of the Democrats' an attic Watergate headquarters in barbed June. one Indes New Reform Bid in Doubt Rep. Garry Brown, (R-Mich.); the key figure im engineering Director the defeat, acknowledged. in said last am interview that her worked three By Spencer Rich. So far, the White House has another item of social legis- with the Justice Department leave refused. all compromises, in- lation suffered a possibly Washington Post Staff Writer: and Rep. Gerald R. Ford (R- Investiga- sisting on the House-passed: (atal. setback: when conserva- The Senate yesterday killed Mich.), the House minority lisciplinary version of its own proposal. tives defeated, 196 to 188, an leader, to block the hearings. the Ribicoff welfare compro- A plan even closer to the ad- attempt to send the minímum Brown denied a charge by mise by a 52to-34 vote dealing shattering ministration program than the wage bill to conference with possibly. fatal Patman that the White House the more generous. Senate blow of welfare one- sponsored: by: Sen. Abra- brought "all" kinds of pres- version. Story on Page A17) td: for the rest. of this hame A. Ribicoff (D-Conn.), In place of the hodgepodge sure," but added: "T. would which was defeated yesterday, of current state programs for have to presume: that the adminise is being introduced by Sem families with minor dependent White House wouldn't want Unloss the Nixour Adlai E. Stevenson III (D-III), further attention: paid to this trations endorsem some new children, with monthly bene- compromise between- its own but the administration hasn't indicated endorsement: Ribi- fits, ranging between $60 in I'm not so stupid to have to be the tower Family Assistance: Plan and Mississippi and $835 in Con- told.") the mores generous Ribicoff coff and Gaylord Neison (D- necticut, the administration Im opposing the hearings; plan. likely that Wis.) taunted the White House originally preposed: и federal Brown and other Lappears refusing it has payments $200 month Committee» members. contend. that ther propostd- inquiry 'Wandering Funds' of GOP Now Topic for Banking Unit By Bob Woodward and Carl Bernstein Campaign 72 wa Washington Post Statf Writer's Rep. Wright Patman (D Tex.) & LC chairman of the House Bank- ing and Currency Committee. said yesterday that he will call a meeting of his Committee next week to discuss "the strange wanderings of Repub- A.1 W.P. HijackerGets Because you have established your credibility with us we do not feel the need for continu Life: Silent 10g the work strike Visibls moved Hards shook On $300,000 dohnson's hand warmly and said Men of Lorton I want to thank you By Paul Edwards He said the four days of mass bargatning had changed Confessed are preate Freder the community's image of Lan ton prisoners K W. Hahneman was sent The week demonstrated need to life imprisenment Hardy said, how a segment of esterday without saving pub the community which has 11 why be hijacked an East been rejected has not lost their manhood and their n airlines jet or what he did ability to be gentlemen th the $303,000 ransom with 1 know my career is on the ich he parachuted into the line right now There are nduran Jungle last May 8 those who want me to leave this job." Hardy said Adding Since he surrendered to that he was eligible for reture officials in regucigalpa, nduras. on June 3. Hahne- ment in June, he said "I do not run from a fight I want n apparently has told only change and I will stay and court-appointed attorneys try to bring about that details of the hijacking. change" has instructed them not to Hardy's comment about ad- them even if it would versaries referred to mounting him. criticism in some quarters of lahneman told American law enforcement and in Con mbers of the American Em FREDERICK W. HAHNEMAN 3 See LORTON, A6, Col. 1 staff in Tegucigalpa that silences lawyer money was taken by a con from Panama and depos in a "Chinese Communist nk account in Hong Kong GOP Opposition Perils use in supporting unspect "causes" in Latin Amer- R. U.S. Attorney Brian Get House Watergate Probe 0 hgs said in an interv that ahneman has stood by this Renald Kessler nk story. but We don't be H:wit wener ve 1L We think the attempt to who will vote to postpone it or = under his contral Bur won't be there to vote." he ere is nothing we can out it." has run into said Hahneman could be opposition Brown said there has not 5 parole in 13 years and postpone any been any White House direc. ettings said the effect tive to stop the probe. al- after the presiden. ssing money on Hahneman's though he said he talks with role chances is something White House aides almost entirely has been spear- daily about many matters. in. "All the News That's Fit to Print" The I VOL. CXXII No. 41,892 1978 The New York Times Company HOUSE PANEL BARS PRE-NOV.7 INQUIRY INTO BUGGING CASE Decision Virtually Rules Out Congressional Hearings Until After the Election WHITE HOUSE ACCUSED Patman Charges Pressure -Six Democrats Among Majority in 20.15 Vote For . York Times WASHINGTON, Oct 3-The House Banking and Currency Committee rejected today, 20 to:15 a proposal to hold public hearings on certain aspects of the alleged hugging of the Dem- NYT P.1 10/11/72 ceiling on Federal spending in off the current year. without explanation this eve Although Die White House The spending ceiing. which nmg by Ronald Ziegler the By HRISTOPHE LYDON would not provide was approved by a vote of 221 White House preas sectetary M. Resinger's CHR AGO, Oct to 163, would give Mr Nixon Shortly after 6 PM. Mr Pans during the day, the (11) George McGovern detailed to unrestricted authority to either Zieglet and that word had been pp here was that mght his plans for withdrawal cut or eliminate Federal spend received from Mr Kissinger in his decision to stay 111 Parts from Vietnam. including it VISIT ing programs to keep spending the last half hour: that he came after he met with the to Harfor by Las Vice President to the $250 billion maximum would hold another session to The ceiling would be 111 effect French Loreign Minister, Mau to speed the of America morrow with Le Due The, 11 only for the current fiscal year, nce humann, following the member of the North Vietnam prisoners which began July I third negotialing session with ese Politburo, and Xuan Thuy, Drawing the hoice Heaver the North Vietnamese Nixon Praises Vote the chief North Vietnamese himself and President Nixon as Mr humann. who for Mr. Nixon issued a statement negotiator at the larger sem- "four more years of war or four praising the House for its public peace talks. weeks has been expressing years of peace," Mr. McGovern loptumism over the outcome of "responsible" action, about an Mr. Kissinger, the President's the current phase of the talks hour after the vote. national security adviser, will Transcript of the McGovern public and privately, called on, He urged the Senate to take fly home tomorrow evening, the address is on Page 29. White House added. President Pompidou immediate "quick and positive action" on built on year old campaign the measure "without creating White House spokesmen de- Continued on Page 10, Column 1 pledges and told a national any loopholes, so that excessive television audience that 11 spending and inflation can be held in check and higher taxes Patman Bids 4 Nixon Aides elected President he would take the following steps can be avoided." GHalt the hombing of North Whether the Senate would Testify on Watergate Case Vietnam and end all militar: honor his request was not and political support of South clear Vietnam's military Government Senator Mike Mansfield of next Jan. 20, Inauguration Day Montana, the majority leader, WASHINGTON, Oct 10 $Soon afterward send Sar tative said just before the House vote Representative Wright Patman Shriver, his Vice President, It. that if the spending ceiling announced today that the to Hanoi "to speed the arrange were passed. you might As House Banking and Currency ments" for the return of Amer- ends well abolish Congress" be- Committee would meet Thurs- icah prisoners. cause Congress would have day in another attempt to in- IAllow the Vietnamese to given away its constitutional ision vestigate the break in and work out their own settlement. power to control Government alleged bugging of the Demo- and cooperate to see that any Army spending cratic headquarters scttlement, including a coali- Democrats Lose Fight The Texas Democrat, who IS tion government, gains inter- But the Democratic leaders the committee chairman, issued national recognition times in the House had also opposed copies of letters to four promi- qAt the conclusion of the 10-Jus- the ceiling, and they were nent advisers to President war, request Congress to adopt list said voted down Nixon asking them to appear "an expanded program for our impro- A key difference between the voluntarily at the session. veterans." on in a Senate and the House may be The chairman's effort to hold qGive jailed and exiled draft on last in the attitudes of the chair- public hearings came after re- The New York Times evaders "the opportunity to revious- men of the committees with jurisdiction over the spending ports this morning in The Wash- Representative Wright come home." He did not use ter as a ington Post that the incident Patman talks to newsmen. the word "amnesty." icial. ceiling Order the closing of Ameri- In the House, the chairman had been part of a larger espio- Rehn- nage and sabotage campaign the Nixon campaign finance can bases in Thailand, but only of the Ways and Means Com- majority mittee, Wilbur D. Mills of Ar- against the Democrats, waged committee "after all our prisoners have against kansas, was the leading advo- on President Nixon's behalf All four were invited to bring been returned o were cate of the spending ceiling. One of those invited was along any books and records Quiet Persuasion y's sur- The chairman of the Senate John Wesley Dean 3d. counsel in their possession dealing with The heart of Senator Mc- r. Rehn- Finance Committee, Russell B. to the President. The lawyer various aspects of the incident Govern's plan was not in the ant At- Long of Louisiana, on the other is known to have conducted a Mr. Patman indicated a par- few fresh particulars but was testified hand, has indicated that he secret White House investiga- ticular interest in financial in his reaffirmation that quiet al basis wants to see some limitations tion of the June 17 break-in at transactions linked to it persuasion in place of the on the President's budget-cut- the party headquarters in the There was no indication that current bombing would free the explan- ting authority written into the Watergate complex. any of the four would testify prisoners within 90 days. The 15-page bill. Also asked to testify were voluntarily. A Republican mem- same three months. he said. sued as The Finance Committee may John N. Mitchell, former chair- ber of the committee, Repre- would permit the removal of sts' de- try to meet, hold a hearing and man of the Committee to Re- sentative Ben B Blackburn of troops and "all salvageable himself take action on the measure all elect the President: Clark Mac- Georgia, told newsmen that American military equipment Gregor, the present chairman, Mr. McGovern's speech, re olumn 1 Continued on Page 13, Column 1 and Maurice H Stans, head of Continued on Page 27, Column 1 corded last Sunday in Washing ton, was aimed at a prime-time Laotian Tribe Fears U.S. Will Abandon It audience that included more than 20 million viewers en the Columbia Broadcasting System and a number of other stations ELD across the nation The setting of Media Years ern's speech was the of ietnam- the Senate majority leader village Mike Manisticld. 111 the Capito Dua Hammers at Nixon among rich Beyond his own peace plans THE NEW YORK TIMES WEDNESDAY OCTOBER " 1972 rs to Testify Tomorrow on the Watergate Case Father Tows 3 ested there would Nixt. are reported to be en- said today that private inves- physical bug or tap." she said. But They Dro for him after the rolled Democrats tigators for her had found evi- "their investigator, Nicholas The Post charged in its article dence that wiretaps had been who is now an Beltrante, heard a voice say as EDGARTOWN, Mass Oct without citing further examples, placed on her Washington and orney General of that Federal investigators had New York Congressional of he dialed a local number: (UPI)-A 41-year-old man tow so said that Mr. never said whom reported that the intelligence fices ""Bob, they're dialing a Wash- 10g his three dead sons, reache ing for when the operations included the follow. She asked Speaker Carl A)- ington number-start monitor- shore today after swimmir made and had put ing activities bert of Oklahoma to conduct 8 ing.'' through the night in storm Following members of Dem. further investigation into the by saying. "Don't The private investigator's re- seas when his boat sank matter p.40 NYT recommended surrender dents at Wheaton College the Demo and withdrawal. nearby Wheaton, III, "Settit nominee's blueprint 101 "It seems to me that the the moral tone of this natio merican involvement whole thrust of the statement is the most serious respect ar in Indochina may be based on some sort of idealism. which IN fine." he bility of the next Presit ures Forecast said A little more than an g to the demands of But to base negotiations and later, the Demos no tnam and the Viet- national unity policy simply poted Mayor Datey and out any concessions on idealism, and not on realism of his precinct captains her side, the Defense and not facing up to the real Sherman House here declared, would "as world in which we live IS abso corned beef and cabbage re" of a range of lutely the most dangerous thing and an exchange of PO tiations on such sub- that we can do if we are going homilies niting strategic weap to have success in future nego Associated Press Senator McGovern ing forces in Europe tiations any place in the world," Senator George McGovern being applauded by Mayor organizational politics." ng the threat of con he said Richard J. Daley at a stop Tuesday night In Chicago. "great statesmar supere Middle East. poses the Vietnam war ionally televised ad. a good man if mar of night, which McGov. Nixon Aides Balk on Watergate Hearing rity declared Mayor described as one of 'First Great Turn mportant of the cam- South Dakota Demo- It was WHO d, if elected, to stop even the most basic inquiries The letter which the Presidential candida was ag ng, end the flow of WASHINGTON, Oct 11 It IS the first time that a Prese gressively by the paper first great turn toward upplies to Saigon, Four of President Nixon's ad dential campaign has been publisher Wham Doeb in edi- with a huge rally here within 90 days the visers declined today to appear carried on as if it were being total KS on Mr 25K16 month Mt McGovern .. American military before the House Banking and operated as a secret society came yesterday when and be said that the Ma up again outh Vietnam, Laos Currency Committee to answer The letter from the attor The Washington Post charged assistance at a funds odia, and, after the questions about the break-in at neys is an insult tolevery single that a White House aide had event for 10,000 persons American war pris- the offices of the Dem crati American who believes in free taken redit for writing the night had helped to ma draw United States National Committee and open elections It an at etter the most heart warm 17 rom Thailand and The chair regant act It is an amazing Matilyn Berger, a Post stirring most deeply grat evening" of the ampa 20 rom the waters off man Representative performance for people who porter said that on Sept Patman of Texas, had asked are supposed to X seeking the Ken W Glawson, The two speeches toda Hugh Scott, Repub- the four men to testify volun votes of the people for of for vor McG were dist Walter the and them hnsylvania, the Sen- tarily at a session scheduled dive hran y floor leader. said tomorro morning The full commentator for the Columbia wrote the The Post to they served to committee refused to issue Broadcasting System said in an ported that Mr Clawson had fort S combine spiritual as "shocked at his subpoonas in the case that last making 25 with politica rference in the des. pra The four who declined Mr day man called and search people of South ment Mr. Patman invitation were ind mper nated Frank available suggesting for the Democrat their Wesley 3d. counsel the the Mr McGovern has deno and leaving out President Ma ess before an Gregor the Vietnam war as Mr. stood for the behind decred the Nixon emy." Refelection letter of tion as and Joins Attack dent John N Mitchel Mr. who wanted The creasing!) the drug day show over the and Mauri H the ampai a Stans M: ren iroadcasting Com- Nixon chief fund greater exposuring that clin raiser George Beach cation to the principles Senator McG nat founders sion network this was ir McGovern said Letter by MacGregor being given the Mrs Shewlet: Barker an in eme Edman e gram, as meant to imply that against that sistant given director is on the tampus :: In a letter to Mr Patrian, President Nixon The said said that she had never seen 1 trip South etham Mr MacGreg said that he that the ratio looked ms when be spoke like about or heard If Paul Morrison evangelica would accompany the President RO per cent for Mr and that the center had no of removing all mentalism in religion his campa zn trip to Atlanta and 20 per cent for Mr records beating his name American military growing UD in the tomorrow and that therefore The caller said that he The Canuck remark was Dakota household of his his schedule does the phrase should not permit wanted to warn Mr Crankite leged to have occurred at The Joseph McGovern a an appearance to the equipment that newsmen covering the Seed mentalist Methodist being used now by M- MasGregor, a former campaign were beginning to Senator Robert J Dole of House member, said was notice the favoritism and that Kansas thairman of the Re- Distortion Detected ased in Vietnam Robert J Dole of mittee understanding did that the they he did anted to warm him bef re publican National Committee He spoke of chairman of the raies permit an expose it issued 1 five-page statement would National Commit witnesses be called without Mr Cronkite said that he today in which he assailed serv in the Young M d the McGovern notice This point was also had told the caller that this Senator George McGovern on Workers Band and nappropriate, rre- raised by the Nixon commit- was not true and had hung up the Watergate issue strict for my king" that di hypocritical lawyers The next day, Mr ronkite said in a letter to Mr Patman on Difficulties Described bade dancing, card pia he called Mr Mankiew who drinking, smoking and mo Ford. the House der, criticized the behalf of Mr. Mitchell. Mr. told him he had never made the Mr. Mankiewicz and some But his upbringing nply a formula for Stans and Mr. MacGregor, the call other Democrats have been him. he said with religious t take-over in Sale lawvers said that computtee 3 Watergate Defendants telling of various campaign dif. victions that shaped his rules required that prospective Meanwhile, three of the de- ficulties and unexplained x the mota dimens of cGovern is unreal witnesses be given public no. fendants in the Watergate bug currences The McGovern ad life as a great but tahink Republican added tice at least a week in advance g.ng indictments contended to viser has suggested that the ly troubled. nation eany, president of They also asserted that an day that they had been the ob- Republicans were responsible He emphasized that be an Federation of investigation of the break jects of telephone tapping and but has provided no evidence not quarrel with the cons Congress of In: in which listening de- other surveillance in recent He recalled A telephone call tional principle of separate inizations, who has vices were allegedly to be in. weeks to the office of George Meany chur and state but comp endorse any Presi- stailed at the Democratic of fices the Watergate complex Lawyers representing the the labor leader in which ed that 10 had been idate, said of the had not been authorized by the three men, G Gordon iddy someone who identified hini- into "the practice of separa oposal. "Instead of E Howard Hunt Ir and James self as Gary Hart, another Mc of faith from politics the Hanor's responsi committee and that the panel. refusing to issue subpoenas, W McCord Jr. filed papers in Govern aide rather peremp ration of mor ality from tinuing the blood Federal District Court here to- tonly told Mr Meany go opponents of our had voted against holding hear day giving details of the report to New York to meet with the He implied difference Ky do nothing but ings ed incidents They were among Demo indidate Mr Hart approach between Press Cooperation Alleged A number of court papers fried denied making the call He $330 nited States House Comment They contended that Mr in the case today It was also said no President has the itans had "fully cooperated in Mr Liddy said in his affidavit ne who posed as incox to A House declined to the speech, but it every way with YOUR commit that he had been followed on the M GOVERN television büyer that face the is an feepest that President tee They had an one OCCASION by two men in a trist considering a na swered numerous questions" sedan while driving on a Wast speech within us during a private meeting earlier ingion freew and in another network But said that & Presid io broadcast this with the ommittee staff in ident yesterday, followed and profound subject was not and regemera NYI p.33 10/3/72 Lucy said in an interview President of the United States The AFI C10 executivelterday by including: Air fare, accommo- The hicago meeting elee ted if he had a mind to- could dations with private bath. break- a five man steeting committee have done a con job on the fasts, museum pass, special to diaft a constitution for a whole American people. lunch in Naples, special dinner group to be called the Coah "As to the gram investiga in Rome, rental CAT (you just tion of Black Trade Untonists tion, I don't know what will find but we're going to investi pay for mileage), shopping dis- Workers and the Poor Rate the hell out of it." counts, welcome ktails, wine The coalition will conduct " Mr Gray said he had taken tasting, discounts on meals, membership drive to enlist under my own wing, night lub entrance. coral "good black unton members through 15 break in and bugging of luck" charm, and more! For out the country, Mr. Lucy said. Democratic National Headquar more information, mail the 11 will also embark on an 111. ters at the Watergate office coupon. tensive effort to organize poor building that resulted in the in blacks, he added. du tment of seven men, includ- There are about 2 million mg two former White House Alitalia Airlines, four De- black members of trade unions constitants and the former I partment, 660 Fifth Ave- The total number of blacks in chief of security for the Com- nue. New York, N.Y. the work force is estimated at nuttee for the Re-election of the 10019 9.8 million President Please send me more The new coalition will not be Mr Gray said he did not information about the a black "separatist" or even a subscribe to'the thesis that the "civil rights" organization, Mr Administration could not inves "Serenade." NYT-RC-10-$ Lucy explained It will work tigate itself within the trade union frame "Anyone who writes that is Name work for black workers and really leveling a general indict- the black community, he said. ment against all public offi Address "But before now there has cials," he said. been no forum for black mili- "Look at the Watergate," he City State Zip tancy within the trade union said "If the President of the movement." he asserted United States were so minded, V- Travel The decision by George Meany he would have had to give an and the executive couned of order to the Attorney General, Alitalia the labor federation to refrain who would have had to order name WORLD APLICE from endorsing a Presidential the Assistant Attorney General candidate this year was the for the Criminal Division and catalvst that created the move the Acting Director of the F.B.I., toward R national black labor who would have had to order organization 1.200 agents. He would have to Nixon Impact Cited control the United States At torney of the District of Colum "The AFI C10 decision bia and the men and women of did not take into consideration the grand jury. the negative impact that Nixon "Even if some of us are has on the poor, especially the crooked, there aren't that many black poor," Mr. Lucy said that are. 1 don't believe every- "There is no way black union one is a Sir Galahad, but there's ists are going to remain neutral not been one single bit of pres- in this election," he declared. sure put on me or any of my However, the goals of the special agents." new coalition go far beyond this year's election, and will Inquiry Delay Asked deal with matters of particular WASHINGTON, Oct. 2 (UPI) concern to black workers, he The Justice Department told said. the House Banking Committee For example, the new organ- today that R committee investi- ization would not support the gation of the Watergate bug- President's continuation of the ging incident at this time would A 15 Banking Panel to Vote on Wat By Bob Woodward some Democrate sas they CX generally declined to discuss politically motivated the Secr and Carl Bernstein pect gorous opposition to the the case on the grounds that Watergate case is all Me: the Washington Post Statt Willer investi_ation from the White such discussion would preju. Govern has going for him and Chairman Wright Patman of House dice the rights of the accused Brown said. Nixo the House Banking and Cur The decision on whether to That position was echoed In announcing the Oct 3 stroy THE WA Panel to Vote on Watergate Probe RE crats say they ex- generally declined to discuss politically motivated the Secretary Maurice H. Stans. quest by George Washington opposition to the the case on the grounds that Watergate case is all Me the chief Nixon fund raiser. University law professor John from the White such discussion would preju- Govern has going for him." and published reports that top F Banzhaf 111 that the court dice the rights of the accused. Brown said. Nixon campaign officials de- appoint a special prosecutor in on on whether to That position was echoed In announcing the Oct 3 stroyed financial records rele. said the federal court has no st full public air- again yesterday by Rep Garry Banking Committee meeting vant to the case the Watergate case Richey Л the FBI, ching Chief U.S. DIS triet Court Judge John J Siri ca's order restricting out of court comment on the Water gate case. have recently re- fused to discuss the investiga tion Gray. in Dallas on a tour of FBI field offices, told report ers there yesterday that he felt he was covered by Sirica's order HAS IT! But the acting FBI director did say that "there is no arm of government we would fail SHAPS PATERSON Nixon Aides Snub House EVERYTHING YOU ALWAYS Probe Call BUT WERE AFRAID TO By Bob Woodward and Carl Bernstein 1st Time Ever in the USA!! Washington Post Blatt Writers Four of President Nixon's :top aides and former aides PATERSON Enlarger "have declined to appear woluntarily today before the with 2 YEAR 10/13/72 A.6 w,P Patman Lectures Empty Seats As Nixon Aides Fail to Appear 11 By Karlyn Barker Congress press for an investi- President's re-election commit- Washington Post Staff Writer gation of the Watergate issue, tee chairman said "The Wash The chairman of the House said the absence of the wit. Banking and Currency Com- ness "will be the political ington Post is elevating gossip turning point in the polls as to front page news ... be. mittee lectured to four empty M- Nisse shows cause it is frustrated that the W.P. Prolongs and me in the 1972 presidential 10/11/72 campaign." With McGovern long com- Paris Talks mitted to end the American is share of the warfare in Viet- nam, Laos and Cambodia within 90 days of his election, White House announced he made no claim that he was night that presidential en- producing any dramatic new Henry A. Kissinger would variation on his own program. end his talks in Paris with Instead, he elaborated on his Vietnam's negotiators proposals, which he claimed fourth day today. "will work," and charged that surprise announcement President Nixon, by contrast, neveral hours after has "broken" his war-ending House press secretary pledges with a still-unfulfilled L. Ziegler told report- "secret plan" to stop the kill- that Kissinger would re- ing. late last night after three The senator's delivery of his of talks, plan to end "a hated war" news came as CBS re- was probably the -most effec- sed tive performance of his cam- that Hanol would be to accept South Viet- paign. He spoke in strong moral tones, but with calm President Nguyen Van deliberateness, and said that as the leader of one of in 1954 France elected a new factions in a coalition president, Pierre Mendes- ernment, "if you make a Rep. tastic supposition" that he France, with a "very similar" route out of Indochina war- accept such a coalition rnment for à neutral fare, which he fulfilled "within three months." Vietsam. John McGovern made no direct Democrat who returned Monday reference last night to the cur- rent negotiations in Paris be- Bills Voted from several weeks in th Vietnam, said he had tween presidential envoy Henry A. Kissinger and North told this by " North Viet- Vietnamese Politburo member Sabotage Charges Pr.George's ese who speaks with au- Le Due Tho, which the White ity." House last night said will con- By Karlyn Barker By Philip A. McCombs was noted here that the tinue for an unprecedented and Bob Woodward Washington Post Sta.K Writer Communist demand has fourth day today. Washington Post Staff Writers The Prince George's County ys been not merely the de- The senator evidently was The McGovern) camp last Council overwhelmingly up are of Thieu, but the basic betting, however, that no mat- night accused the Republicans proved yesterday a controver acturing of the govern- ter what may emerge from the of more acts of attempted po- sial zowing law that allows in Salgon. Paris talks, it cannot produce head of only one of three litical sabotage and Rep. construction of the Latgo by election day. Nov. 7, the sports arena on public park pings in a soalition - the sweeping exit from the war Wright Patman (D-Tex.) re- land and seeks to protect the ent rulers in the South, the that he advocates. Indeed, newed his effort to open à project from a legal challen Communist opposition and there is no claim of that inside congressional investigation in- The Council also to the Watergate Nixon committee mission. mökesman for the GAO the remaining 20 per cent to publicans described some of Clawson, a White There has also been said yesterday, however, that Nixen. "But everybody's get the plans, linked to the poll- statement by Alfred C: Beld- bis office "may not have the ting suspicious-better give age in the Post win 111, who has been granted time dr authority" to do all more to Nixon," the Map. Roger Lee Nixt, the attor flatly denied the immunity from prosecution, that Patenan has asked by the klewiez impersonator said. ney, told CBS reporters in lows that one plan was to that. he participated In the Oct 26 deadline. Mankiewicz anid that Cron. print up "bogus tickets or reported that bugging conspiracy and saw There was no indication yes. kite later told him of the im- extra tickets" for Democratic had linked the transcripts of the bugging terday whether any of the personator's call and "said fund-raisers, particularly those incident addressed to a presidential four Republican aides asked to the guy was definitely not of Sen. Muskle, campaign of polit aide and members of the re- testify before the Committee just a crank." Nixt said these extra tickets and sabotage election committee. would appear Thursday. Manklewicz said the other "would be given to people so Democrats. Patman said U.S. District A spokesman for the re-elec- recent examples of alleged dis- that when the dinner was ac- an, chairman of Court Judge John J. Sirica's tion committee said he did not ruption and Intelligence gath. tually held, there'd be confu- anking and Cur amended order issued last Fri- know what response MacGre- ering included: sion because too many people alttee, cited the day "clears the way for these gor and Stans would have . A telephone call to McGov. would be there and this would sing again for the witnesses (Mitchell, Macy "and I don't believe in saying orn finance personnel by some. Irritate the Democrats in a gressional inves- Gregor, Stans and Dean) to things r don't know." one impersonating Kirby Jones way and create a problem in subpoens powers appear voluntarily There There was no response from of the McGovern staff asking the Muskle campaign." is no legit mate reason for either Mitchell or Dean, but a for information on how much tergate bugging Nixt said he was told "1 was refused by them not to appear." / spokesman for Patman said be was given to the McGovern would get paid good for it, STAR of his Commit- Sirica has earMer prohibited expected that at least some of campaign by Stewart Mott, the that money was no problem." WIN the fair would show up for the General Motors heir. out-of-court comment on the Meanwhile, reports were cir- HOW Watergate incident on the hearing . A request by another per- culating in the McGovern be called the WHIL ether for a 10 a.m. grounds that It would preju- "Judge Sirica has given son claiming to be a Taiwan camp that some of the initial neeting because dice the case of seven defend- them permission to talk and diplomat seeking information information concerning t h e ants indicted in the Watergate that was their only excuse be- on McGovern's long-range cam- medical history of Sen. Thom- of the past fore," said the spokesman. paign schedule. as Eagleton came from Repub- reatly intensified break-in and alleged bugging of Democratic National Com- "They'll have to come up with A telephone call by some- lican sources. McGovern 11 of the matter." mittee headquarters. another reason or they'll sim- one posing as an aide to cam- dropped Eagleton from the asked to testify ply have to start talking." paign manager Gary Hart re- ticket after it was disclosed an's Committee On Friday. however, Sirica The spokesman said that if questing campaign chairman that the senator had received acGregor, chair- said his ruling was not in- the witnesses did not show up, Lawrence F. O'Brien to stop psychiatric treatment. Committee to Re- tended to affect congressional "then the Committee will con- criticizing Hart. Robert Boyd, chief of the esident: Maurice activities, political debate or sider voting to subpoena Another telephone imper- Washington bureau of Knight committee's fi- news media reporting. them." sonator alleging to be Oliver newspapers which received the an; John Mitch- Patman sald he did not Members of the Committee, Tyrez, the McGovern TV first tip on Eagleton's back THE NEW YORK TIMES, FRIDAY OCTOBER 13. 1972 head, PATMAN BALKED Aide to Nixon's Camp ON WATERGATE Continued From Page 1, Col. 6 partment for an team formed by W of the re-election committee, aides last year The Fails Twice to Get Enough including its former chairman, put together to plug John N. Mitchell But the re- to the press after L' Democrats for Quorum tion in The New Yor spending ceiling ports did not give the source details concerning tr by the full of the information. iimiting nuclear arm Efforts to reach Mr. Mirch- By E. W. KENWORTHY tween the United both the Senate Special York Times ell today were unsuccessful. Soviet Union moved quickly WASHINGTON, Oct. 12- No evidence has been found, The group incl less contro- Any prospect of a Congres. either, that the seven men Liddy, a former Actions to. reau of Investigat the following: sional investigation before Elec- informed anyone on the com- and E. Howard Hunt approved a com- tion Dav inter the break-in at mittee orally about their in- Central Intelligence to channel $30- the Democratic National Com- telligence-gathering activities erative and revenues to mittee and the alleged financial at the Watergate, the sources elist. Both Mr. Lidd and counties said. five years Sen- irregularities connected with it Hunt are among the Although committee money sons indicted in the expected tomor- apparently evaporated today was used to finance the Wright Patman, chairman of According to sourc the bill to the Watergate operation. evidence the case Mr Liddy the House Banking and Cur- gathered thus far indicates that Senate and the rency Committee. failed twice Hunt would 20 to M G Gordon Liddy, the com- to collect enough committee when the intelliger a compromise mittee's former finance coun- Democrats to make a quorum. Associated Press needed information construct sel, who is one of the seven bill send- On Oct 2 the committee Robert C. Mardian Justice Department men indicted in the case, ar- voted 20 to 15 against a mo- an agency of the White House. ranged for the money on his the tion DV Mr Patman that would investigate a particu approved own. Gen Creighton poenas to-compel testimony by have enabled him to issue sub-icrat is reported to be reluctant In Last December The $350.000 that was later be Army Chief to head an investigation. disclosed to have been in the vote of 84 to 2 40 witnesses and the produc- any event, it is doubtful wheth- is needed. fion of documents er he could mount one before safe of Maurice H Stans, Presi- dent Nixon's chief fund-raiser. Washing passed and sent He sought to determine how the election. at the time of the Watergate a bill to prohibit $114,000 in Nixon campaign In another development to- operation was there for unicipalities from contributions was funneled day. Mr. O'Brien asked Phillip reasons that were not con- Oct. 12. 197 on airline pas- from a Mexico City bank, to S. Hughes, director of the Of- Houston. to Washington, and nected with the operation, the THE PRESIDE ticket sales fice of Federal Elections in the sources said be certain limited ultimately to the Miami bank General Accounting Office, an Activities. Preside They would not disclose the only until next account of Bernard L Barker, investigating arm of Congress, reasons but said that details had a morning mee who was one of seven men ar- to inquire into the activities of Republican Cong approved com- rested in the June 17 break-in about the money would come the "November Group, inc." leaders. later he a out at the trial of the seven authorizing $2 at Democratic headquarters in Nixon flew to Atlan This group was incorporated men and "will surprise some next years the Watergate complex here in New York State on Feb. 8, to eiderly, In that vote 14 of the com- people." MAJOR POSITI the 1972, and its purpose, accord- Some of the information col- Defense. The Sen sportation, mittee's 15 Republicans ioined four Southern and two North- ing to Republican officials, is lected in the investigation of firmed by an S4 to and home delivery to conduct the President's ad- the case, according to one of nomination of Gen House is expected ern Democrats to defeat the ipproval hairman, a Democrat of vertising campaign. those who took part in the in- W Abrams as Army tomorrow Staff. approved a Texas One Demox rat and one Mr. O'Brien alleged that "the quiry, dealt with the relation- compromise de Republican were absent. November Group itself has not ship of Mr. Mardian to men in CONGRESS priations bill. the Mr Patman called the meet registered as a political commit- volved in the Watergate affair Floor A World War = today ostensibly to ques- tee, or in any way accounted While an assistant attorney Ships. The 2-billion below tion four Nixon aides-John for the monies transferred to general, Mr. Mardian served as and it." the liaison in the Justice De- Sen ate a requests The N Mitchell, former chairman act before send of the Committee for the Re- to the White election of the President; Clark Mar Gregor, his successor: Mau- approved and sent rice H Stans, the President's a bill providing chief fund-raiser, and John controls over Wesley Dean 3d. counsel to and authorizing 0 the President, who has already mined done an in-house investigation has before the Watergate incident for lar bill butlet Mr Nixon whether final a was never any likeli bill will come Bood that these four would How does you respond to Mr Patman's HIVE the 34 L+1 THE 1972 CAMPAIGN THE NEW 2D CAMPAIGN TOUR PLANNEDFORNIXON President to Visit New York OH Next Tuesday-G.O.P. Legislators Speak out By ROBERT B. SEMPLE Jr. special to the New York Times WASHINGTON Sept. 19 F President Nixon will fly to New York next Tuesday to kick off the second tour of his re-elec- tion campaign. Mr. Nixon, who will pay A brief visit to Texas Friday and Saturday morning, is scheduled will They reported that The declared, the Bhd Nixon Administration elt he needed an opportunity Heedy IH American cities es- they Congress shows mature fe- to explain his view of the pecially will be dealt a heavy, straint on spending country and what he felt painful blow. Senator Hugh Scott of PeHH- it should aspire to and to Mr. McGovern has wrestled sylvania minority leader, was try to dispel fears among the for some time with the dif- asked- whether he could clear electorate that he was a radical. ficulty of providing aid to The up apparent confusion between assertions by Administration Despite Senator McGovern's Catholic and other religious ation aides on Sept. 7 that there recent success with crowds schools that could be recon- would be no tax increases in a during his travels across the ciled with the constitutional de- Seria mand for the separation of today country and his own apparent ents second Nixon term and a state- ment yesterday by George P. growing confidence, many of church and state. those following the campaign He has visited Catholic edu- paro S Shultz, Secretary of the Trea- discerned a degree of uncer- cators for discussions, as he socia sury, that "sooner of later" the question of tax Increases would tainty about the national im- did last month in Kenosha, Wis. Sena have to Be faced If Govern- pact his efforts were having In tn Issuing his statement to- ment spending was allowed to the new discussion of the wis- day, he noted that the Supreme soci keep rising. dom of an early nationwide Court had upheld the use of your television address. public school textbooks by hbn- vide "There Is no confusion about it." Mr. Scott said. "If the 'Would Not Like It" public school students because ance Congress will adopt 1 spending In the meantime, his decl- a "wide segment of informed your opinion, legislative and other- credit celling, if the Congress is re- sion to produce this week sub- wise, has found that these childre L4 sponsible, that is it The Presi- stantive statements on the dent believes that if his advice problems of Appalachia and schools do an acceptable job paroch such all is followed there is no reașon parochial schools for those of providing secular educa- strategists who have been ad- tion to their students." in vie crease.' why he should Have 1 tax 1 cisions vocating the use of such state- For this reason, he said he Ronald L. Ziegler, the White ments as a counterbalance to thought there was "reason to you for House press secretary, took overwh what have become his standard believe that further aid to the our pul much the same tack IN his attacks on the Nixon Adminis- parents and children par- enrolls morning briefing. He said the tration on such issues as Viet- ticipating In parochial and other nation President did not "Intend" to inflation. ham, taxes, unemployment and bona fide nonpublic schools propose tax increases but that will be upheld by the Court." Schmi P Congress would have the te- Along these lines he visited "It is on that basis that after sponsibility to false revenues MEM Gordon Technical High School careful thought to all the dif- If It continued to exceed Mr. The At this morning, where he was ficult questions involved," he Nixon's spending requests. that can greeted by an auditorium full went on, "I want to endorse Mr. Ziegler took trong ex- said to of screaming students. here this morning a system of ception. to an article In this would First he warmed them up morning's New York Times tax credits to aid the parents with the attacks on the Ad- court-of which suggested that pledges of children attending parochial ministration's conduct of the ing of made at separate briefings on Vietham war that have become and schools.' other bona fide nonpublic for raci Sept. 7 by Mr. Ziegler and expected of him. Court John D. Ehrlichman, assistant We would not like it If He added that he thought the authorit to, the President for domestic bombs were falling AH FRE proposals Full "by no means cover der," M THE NEW YORK TIMES, WEDNESDAY SEPTEMBER 13, 1972 HOUSE UNIT SCANS Oversight May Peril Dem FUND GIVEN G.O.P. By AGIS SALPUKAS Special is The New York times WASHINGTON, Sept. The suit, for damages by the A Secret Report Describes Democratic party against Re- publican campaign committee How Money Went From is A result of the break-in at Democratic headquarters may Mexico to Washington be In danger of being dismissed because of oversights by attor- neys for the Democrats. WASHINGTON, Sept. 12 (AP) Judge Charles R. Richey of Staff investigators for the the Federal District Court here decided at hearing today House Banking Committee say that he would rule Sept. 20 that is much as $100,000 In on the motion to dismiss the Nixon campaign contributions suit, which asks for $1-million that came from Mexico was In- IH damages. volved In the break-in and al- If He dismissed the sult, the leged bugging of the Demeratic Democrats could probably re- National Committee offices IA file It, but this would further Washing last June 17. delay the progress of the suit. Even before the judge's decl- in a confidential report to the sion today, the sult had little full committee, investi chance of coming to trial be- said that at least 000 may fore the election. have come from Mexica na- Judge Richey also ordered tionals, The Investi zators added the lawyers for the Democrats Associated Press that accepting such contribu- to stop taking depositions from Hugh W. Sloan Jr., for- tions would violate Federal law. people connected with the Re-L mer treasurer of the Com- The 000 had been linked to publican campaign and the one of five men Irrested IM the White House until he makes mittee for the Re-election break-in at the Watergate his of the President, on his Building The report was prepared on Hugh Fulling. sloan It. former way to meet with law- treasurer of the Committee for yers in Watergate case. orders from the chairman of the the Re-election of the Presi- Banking Committee, Represen tative Wright Patman, Democrat ocrats dent, appeared attorneys before the but Dem- today, O'Brien, who was chairman of of Texas. was unclear whether he made the Democratic National Com- The report was Accompanied mittee at the time of the break- by A directive that not be re- Mr. deposition. Sloan and Maurice H. in last June 17 at the Water- leased to the public, But a copy Stans, finance chairman of gate Building. Associated Press of the report was obtained President Nixon's campaign Judge Richey could dismiss day with Walter J. Hickel, former Interior Secretary Jack Anderson, the columnist, were accused In an amended on a technicality - that who made ivaliable to The complaint to the suit yesterday Harold Ungar, one of the at- Associated Press. of passing $114,000 to a spy torneys handling the suit for ans for Last 8 Weeks of Drive Staffed into I Suitease squad, refusing to say what the the Democrats, did not answer Committee staff Investigators money had been used for and a motion to dismiss the suit said the $100,000 in funds was destroying the financial records. within five days of when it was brought from Mexico to the The original suit was brought filed. of "alks Starts off With that the Watergate incident would be "a plus for us IM the on behalf of awrence F. The motion was made by Strategy Meeting Daring long run, hot minus, "overstate. because têts Pennzoil Ift Houston, Tex., in early Corporation headquar- of ments,' and that there was "A8 Democratic April where, with Pennzoll ex- White House Breakfast evidence that the Watergate has ecutives present, alon was stuffed with Kennedy and McGovern W Into suitcase affected us adversely. 600,000 in contribu- for canvassing and The briefing, according to lons collected in Texas. The Continued From Page 1, Col. 7 "Democratic" victory are being Mr. MacGre of and Schatot suitcase was then blaced in the Senator's cam- He alleged bugging of the Robert J. Dole, the chairman of Pennzoli plane to Washington, State Street at hoon and to an baign offices across the coun- nocratic National Committee the Republican National Com- the Investi ators said audience of about 10,600 In be- try. Television and radio com- dquarter in the Watergate was concerned 'mostly They added that the haste troit's Kennedy Square later, mercials used during the pri- But discussed Mac- Mr. Mr. with the mechanics of the cam- to necessary to beat the April was, according before going on to Ohio for # maries are being updated to In- effective date of new Fed who Held brief news Senator Dole, a "very enthusi- afai election law that required third performance IN the Cleve- clude an appeal to "vote Demo- cratic" on Nov. 7. later in the day, astic, well- attended meeting the naming of all campaign land Arena. McGovern state coordinators been The 120 state leaders were contributors who donated more The day appeared to be an have been ordered to clear Bilott, -hour briefing for the cheduled to go almost directly than $100. outline In minitture of Sena- campaign appointments with from their briefing during lepublican officials Held which they heard irious ex. Staff Investi Madrice also stans COA- tor McGovern's a national strat- Governors, Mayors or party The objective according and labor leaders who opposed former Sectetary of Commerce the Senator's nomination, LIGHT Committee headquar ligh's chief pollster-to Mankiewicz the po- now heads the had Nixon contra- fund- Mr. Mankiewicz spent White House reception given by litical director combine dicted faising himelf tatements to campaign as much of the Democra ticparty Saturday as a house rues of MacGregor the President and Mrs. Nixon. Salvatore Bontempo, the New been to the effect As for the President's cam the committee and its Investi- as we can with the McGovern constituenci which he de- Jersey Democratic prompt handing -down in plans Mr. MacGre or gators. dined Sunday with that Con ressional râces scribed as the young, the ml- would exonet- Stans's restimony notities and the liberal suburb- Camiel, the leader of the connected with be in element in determining re-election This, his schedule, ahites In score of key-elec- Philadelphia Democratic with Mr. Stans, according to denied the ization toral-vote states. before The Presidential elec that Mr Nixon would make Lon the Democratic challenger said that Mr Trudeau three more radio broade asts to stimped populous New York sue a statement after mottow, Triday and Saturday State and New with # tomorrow with his Ca and would address the nation warning that Mr Vato as indicated that he w on television Thursday night at he referred to the Pre sident no public comment 730 occlock and 00 Nov 6. the would bestierdless second on the stinging per eve of the election administration of the Vespair coke be received at All the broader will DE of the auties He himself was paid for by the ( committee for It's not going to do us BAY DIS parliamentary dis the Re-election of the Presi good to be the TO say that none easily in 80 Eng) dent we have the most devástating my area of Montres: and murderous nussiles that an Strategy Unchanged Under Canada's par. be conceived by the mind of This final flurry of electronic s, stem, the fact that man, if they're defending a activity, however, represents servatives were one country that is beset from with- only a slight, and fully pre- of the Liberals was : in by the enemies of crime and dictable, departure from Mr drugs and pollution and divi- Nixon's campaign strategy The Continued on Page 2, ston and hatred." he asserted essence of that strategy has It was Senator McGovern's been to let his subordinates 11th campaign visit to New and surrogates carry out tradi- Eggs ano York and his sixth to New tional campaigning on the road Jersey since Labor Day It was while he tends to Presidential also the 29th wedding anniver- business at home. sary for the candidate and his Mr Nixon has campaigned in wife, Eleanor They celebrated only 10 states since the Repub- with railies at the Onondaga lican National Convention in County Court House in Syra- August, including a "nonpoliti- cuse and in Journal Square in ball visit to Philadelphia, and Jersey City, followed by' fund ne is at present scheduled to Continued on Page 27, Column 2 Continued on Page 26, Column 3 House Report Raises Questions On Nixon Campaign Financing $30.000 Donation Traced The Watergate Mystery By E. W. KENWORTHY By WALTER RUGABER Special to The New Y 44 Times Special to The New York Times WASHINGTON, Oct. 31-A WASHINGTON, Oct. 31-De- report by the staff of the House spite 19 weeks of intensive in- Banking and Currency Commit- vestigation, sensational disclos- tee raised new questions today ure, and heated political debate, dimensions of the Water- Under the state election law. throughout the state William L Weiss, Port hester, candidates and committees or "I don't see a comparable N Y. $5,000. Mrs. Albert Las ganized for candidates are re storefront effort for McGov ker, 29 Beekman Place $3,000 quired to file preliminary ex etn." said di clerk in the Set Mrs Herbett H Leliman 820 pense statements 10 days be retary of State's office Park Avenue $500 Carter fore the election A final states The President's committee Burden, a New York City Coun ment must be filed 20 days based in the Roosevelt Hotel in cilman. $1,000, Mr and after the election New York City, spent $10,237 Cass Canfield, Redford. N Y "It seeins to me," an analyst for buttons, including 250,000 $500, Louis Nizer 477 Madison for the Secretary of State's of Nixon Agnew buttons. But only Avenue, $1.000 William Ben United Press Informational fice sand, "that a lot of money President Nixon's name ap ton, 342 Madison Avenue d Rockefeller yesterday was raised for Nixon outside peared on 850,000 other but publisher $1,000, Dr Veta a luncheon address. the state and spent here, while tons. The campaign buttons Rubin, 1080 Filth Avenue an the McGovern people obtained were bought from Green Due anthropologist $5,000 Mr and a lot of money here and spent Metal Stamping Company, 55 Mrs. Arthur Krim, 33 East 690 for Nixon; it in other states." West 42d Street Street, $5,077.06 eek 5th Term Report Raises Questions on Nixon Funds ADDEN was placed on the "ina tive" which made half the loan Times Continued From Page 1. Col. 1 table as the Governor list by the Securities and Ex- The F D.I.C has a large stake plored. the staff said, because change Commission in late in the outcome of the case since Governor appeared to be any contributions by foreign 1969. hundreds of depositors in the ing himself as he fielded nationals would be a violation "This raises an obvious ques- closed bank may not 201 their of the law. tion: Why would Gulf Re funds unless. the receiver is able written questions passed members of the audience In a response to the report, sources be transferring large to recover unpaid JOBOS such speaker's table after his a spokesman for the Commit- sums to an inactive corpora as the one made to Mr Duncan, red speech. tee for the Re-election of the tion?" the report said the report said President termed it a "dishon- The Washington Post Oct While unable to off P. d he been asked by the est collection of innuendo and 6 quoted Federal Bureau of $1.3-million owed to 3 Administration to make fourth-hand hearsay" and Investigation sources as having agency the report stated "Dun- peech? "Yes sir. and 1 ac- "nothing more than an elev- said that the subsidiary turned can is somehow able make d with great pleasure, enth-hour attempt to save Mr. the money over to Manuel a $305,000 contribution ockefeller replied. Ogarrio Daguerre, the Mexican form of personal note to uld he be Secretary of Patman's candidate for Presi- a or Secretary of Defense dent from what may be one of attorney for Gulf Resources. Committee to Reselect the the worst defeats in American For Legal Services dent" second Nixon Adminis- ? political history." The company. according to Contributed to Humphrey have no plans other than This was the second staff re- the same reported BI The staff said port based on an investigation sources. insists that the money "the FDIC should make av where 1 am." he re- "I have been offered no into the break-in at and alleged was for legal services claim" on the committee and bugging of the Democratic Na- But Mr. Ogarrio reportedly Mr. Duncan for "the amount seek no jobs." said he was seeking to tional Committee headquarters converted the deposit into four of the note" to the committee last June 17 and possible finan- cashier's checks totaling The staff said the note had t the President of the cial irregularities in fund col- $89,000 and $11.000 in cash. been discounted "in the amount States in carrying out In this form, the money was of $10,200.55" by the First duties" as any citizen lection. returned to Houston and he- "That's my only goal After the first report Sept. National Bank of Washington: came part of about $700,000 'which holds large balances y only plan." Mr. Rocke- 12, the committee chairman, flown to Washington just be- ed insisted if he would endorse Texas, twice sought the panel's Wright Patman, Democrat of for the Committee to Re-elet: fore the April 7 deadline. the President." The four checks ended up in Mr. Duncan contributed President Agnew for the approval for the use of sub- the Miami bank account of $300,000 to Senator Hubert H. lican Presidential nomi- poenas to elicit information. He Bernard I Barker, one of five Humphrey's campaign for the in 1976 and what Cabi- was twice refused. men arrested in the break in Democratic Presidential nom- st he would accept in an In the report today, the staff at the Democratic offices in administration. Mr several times complained that nation earlier this year the Watergate complex. After its investigators had been ham- The report also said that one eller replied that nobody being converted. to ash, the of the committee's investigators any sense" would make pered by the lack of subpoena money was returned to re- had been told by a witness dorsements beyond 1972 power election headquarters in Wash- that Hugh W Sloan, former ted that a New York City Money Transferred ington. treasurer for the Finance Com- al election was coming up Earlier, staff investigators The staff report raised the mittee to Re-elect the President ear, followed by a state- reported that $100,000 in cam- question todav whether the had said that someone had election New York in paign funds had been traced $100,000 was "an illegal cor- called him to say "thev could from Houston to Mexico, back porate contribution disguised monitor the deposits of Demo- Rockefeller. who sought to Houston and then to Wash- through transfer." the use of the cratic Senators and Congress Presidentia to learn of any illegal W.POST 10/01 P.5 Judge's Gag Order Questioned The Wo FRIDAY By Lawrence Meyer could." Sirica acknowledged eral judge about & court practice law. In 1934, while Washington Post Staff Writer that the order could possi- order. Patman said he had in private practice, Sirica House Banking and Cur- bly prevent Democratic not spoken to Sirica yester- used his boxing talents on rency Committee Chairman presidential candidate day. "He gave out his inter. a Metropolitan police ser- Nixon Aid Wright Patman yesterday view," Patman said, "and I George McGovern from dis. geant who, according to wit- expressed "deep concern" to felt privileged to give out cussing the case, but Mc- nesses, took a swing at Siri- the judge who nas prohib- this," referring to the letter. ca. Sirica left the officer AIDES, From A1 Govern said he would not be ited anyone connected with inhibited by it. Patman Patman's letter high- with k swollen eye, Timmons has declined to the trial of seven men said he was confident Con- lighted a potential constitu- At that time, residents of discuss whether he received charged in the break-in at gress could proceed with its tional confrontation Involv- the District of Columbia did the Watergate from publicly ing all three branches of any memos of wiretapped con- own investigation, in the face not have the vote; nonethe- versations since The Washing- discussing the case, of Sirica's order, "but what I government. Sirica's order less Sirica served as a volun- ton Post first asked him about In a five-page letter to am concerned about is the was sought by the defense teer speaker for the Re- interpretation which pró- but was not protested by the the matter more than two Chief District Judge John J. publican National Commit- Sirica, Patman said that Sir- prosecution. weeks ago. spective congressional wit- tee. His reward, in 1957, was nesses might place on your When it was bointed out an appointment to the Dis- A White House spokesman ou ica's order may, be sobroad that it will interfere with an order." Among the questions to Sirica Wednesday that trict Court here by Presi- said Timmons denies that he to investigation Patman hopes Patman said he wanted to in- the order might prevent dent Dwight D. Eisenhower. ever received any such memos qu to hold. vestigate was the granting McGovern and other politi- He is chief judge by virtue as asserted by Baldwin, who is Patman said that the Jus- cal candidates from discuss- of his seniority. expected to be a key govern- to of a national charter to a tice Department has used Minnesota bank following a ing the June 17 Watergate On the bench, Sirica has ment witness in the Watergate Ba the case as an excuse to $25,000 contribution that break-in, Sirica said, "I developed a reputation as a bugging trial. the frankly hadn't A 968 rivals, Call- plomácy to work in the next Ronald Reagan few days in an effort to, assure among those groups who that the campaign fully. ex. make up the new coalition Gov Nelson A. for change in the electorate: are become his ploits what most Republicans the college-educated, the with Reagan see as their best opportunity young. suburban voters, and imporary chair. in 16 years for a májor nation- those earning $15,000 and convention and a) victory. king the speech Secret Sertice G over a year. The eross section" was Nikon asked? "All $ all, did you Poll, which on have on overall favorable fourvyears ago or unfavorable impression of only a 2-point the Democratic conention in sepective Demo- To Guard Schmits Miami?" ate Hubert H day reports him Rep. John G. Schthitz. Pover- Unterer- able able ed of his rival. the American party presi- Total Likely Vehics McGovern. A dential candidaté, will so By Region East poll for Time cetve Secret Service pro- Midwest tection, the Treasury De- 172 South ased today. puts West $. margin at 28 By Age partment announced yes 18-19 30-00 terday. Aug worth/Post 20 Post 96 and over and other Indi- BY Size of Place The abnouncement, said Citize Mr. Nixon's Suburbe oGregor aban- Schmitz had requested Towns Rural = SEVE are t SEEK B tionary tone he the protection for himself By ducation 8th or less on he assumed and his vice presidential High school 25 21 *** 27 31 27 USA D 18 30 25 Sure Not 25 ###7 282 NEW I EXP the campaign College go. Asked today candidate, Tom Anderson. By income p7 Under way Mr. Nixon Sebmitz, a lameduck 999 14,099 the election." congressman from Call- $15,000 and over . 1972. Chicago Tribune olied with a flat, fornia, switched from the strategists are Republican to the Ameri- (ive convention can party brior to his Watergate rovide a prope. nomination. for even further Break-In to Probed S you International Chairman Wright Patman of the House Banking Committee yeste day ordered a staff in- vest ation of the break in at the De inderat National Com- mittees headquarters in Washington two months ago. O The Texas Demoerat, re- sponding to a request from Rep. Henry Reuse, (D-Wis.), told Committee investigators to report within two weeks on what Rouse called "the trans- ter thr ush U.S. and Mexican hants listed in the THE WASHINGTON POST F7 the Merry-Co-Hound DIALAGAIN! End of Cuba Boycott Is Seen in orks ing to restore commerelal ties that It had been left for him tional bank charter to à hold- By Jack Anderson with Cuba in exchange say, th the salety-deposit box be- the company, wé reparted in in earlier for & softening of the Sorjet fore the deadline The money Nixon and Youths column that President Nixon line in Vietham. was converted into a cashier's check, which was turned over President Nixon was so has rejected the Idea of in- cluding Cube IA his campaign Patman's Probe on April 11 to President Nif checred by the youth turnout on's chief fund faiser, Maurice for him at the Miami conven- to reduce East-West tehsions. House Banking Chairman tion that he has called for sim- This is still the word going out Wright Patman (D-Tet.) has Stans. The same check was subse- Uar youth shows in Chicago, from the White House taken steps to block $ national But after the presidential bank charter för Dwayne An- quently cashed by Bernard Los Angeles and New York dreas, the soybean tveoon, Barker, who recruited the sec- City electión, #e have How learned, ond-story squad that was at His young leaders. However, be may modify his hard line whose $25,000 cash contribu- toward Havana, tion to the Republicáns has rested at gunpoint inside Dem are engaged in a bilstering The detailed planning has been traced to the ringleader ocratic national headquarters feud over campaign strategy. already started Lot ending the of the Mission Impossible during the early morning The youth Issues team at the boycott against Cubs and the re- crew caught breaking into hours of June 17. Republican National Commit- WA have obtained a photo- tee wants to "tell It like it 16" dibitity among the PAG tuesday, bd. 3, 1972 THE WASHINGTON POST Hill Probe of Vatergate Scored I'm By Bob Woodward poena list obtained by The s William E. Timmons, the the possession" of Stans, the President's assistant for con- chief Nixon fund raiser, and and Cafi Bernstein Washington Post includes gressiohal relations. in the Hugh W. Sloan Jr., the former Fly Washington Post statt Writers former Attorney General John Committee's list of proposed Nixon committee treasurer. the Justice Department, tol- N. Mitchell and former Com- witnesses, Timmons is de- s Edward Failer, who is lowing ₫ Republican campaign merce Secretary Maurice H. scribed all "an employee of said on the Committee list to to block televised congression- Stans. fn addition, 14 members the White House who report- be "&n employee of the Com- al-Hearings into the Watergate of the Nixon re-election com- edly received memos contain. mittee to Re-elect the Presi- liig matërial from eavésdrop- dent and one who has knowl- star bugging case, has attempted mittee and pertinent records ping efforts directed at the edge of whether the campaign to discourage the House Bank- of eight banks and the Inter- Democratic National Commit- committee attempted surveil- thg and Currency Committee from opening such an inquiry nal Revenue Service would be tee." Reliable sources have lance of political activities." said that the ex-FBI agent, Al- The other White House älde in a letter sent to Com- mittee Chairman Wright Pat subpoensed. An effort t8 postpone any tred C. Baldwin III, who par- named on the list is John W. incl licipated in the Watergate Dean III, counsel to the Presi. man (D-Tex.), the department congressional Water ate probe bugging, has said that Tim- dent, who conducted an In- expressed the same reserva- until after the Nov election tions as President Nixon re- mons received the memos. vestigation into the Watergate has been spearheaded by Rep. cently cited in opposing any Garry E. Brown (R-Mich.), who 8 Murray M. Chotlner, who case, for the President. last week asserted that within he had the If described In the Commit- After receiving the report I've further extrajudicial inquity tée list is an investigator for of Dean's investigation, Presi- shtes dent Nixon said that It ex- ends to M committee's own everyone "presently Tempa