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Context of 'April-June 1972: ’Plumbers’ Plan for Watergate Burglary'

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Frederick LaRue.Frederick LaRue. [Source: Spartacus Educational]Two White House aides, Frederick LaRue and G. Gordon Liddy, attend a meeting of the Nixon presidential campaign, the Committee to Re-elect the President (CREEP), where it is agreed that the organization will spend $250,000 to conduct an “intelligence gathering” operation against the Democratic Party for the upcoming elections. (Spartacus Schoolnet 8/2007) The members decide, among other things, to plant electronic surveillance devices in the Democratic National Committee (DNC) headquarters (see April-June 1972). LaRue is a veteran of the 1968 Nixon campaign (see November 5, 1968), as is Liddy, a former FBI agent. (Spartacus Schoolnet 8/2007; Spartacus Schoolnet 8/2007) LaRue decides to pay the proposed “Special Investigations Unit,” later informally called the “Plumbers” (see Late June-July 1971), large amounts of “hush money” to keep them quiet. He tasks former New York City policeman Tony Ulasewicz with arranging the payments. LaRue later informs another Nixon aide, Hugh Sloan, that LaRue is prepared to commit perjury if necessary to protect the operation. A 1973 New York Times article will call LaRue “an elusive, anonymous, secret operator at the highest levels of the shattered Nixon power structure.” (Spartacus Schoolnet 8/2007) The FBI will later determine that this decision took place between March 20 and 30, 1972, not 1971 (see March 20-30, 1972). In this case, the FBI timeline is almost certainly in error, since the “Plumbers” break-in of the offices of Daniel Ellsberg’s psychiatrist came well before this date (see September 9, 1971).

E. Howard Hunt.E. Howard Hunt. [Source: American Patriot Friends Network]Nixon White House aides Charles Colson and John Ehrlichman appoint former CIA agent E. Howard Hunt to the White House staff. Hunt will become a key figure in the “Plumbers” unit that will burglarize and plant surveillance devices in the headquarters of the Democratic National Committee (see April-June 1972). (Spartacus Schoolnet 8/2007) Hunt is a longtime US intelligence veteran, having started with the CIA’s predecessor, the Office of Special Services (OSS) during World War II. He worked extensively in Central America during the 1950s, helping build the US’s relationship with Nicaraguan dictator Anastasio Somoza, working to topple the democratically elected government of Jacobo Arbenz of Guatamala, and coordinating US efforts against Cuba’s Fidel Castro. Hunt also writes spy novels. (Spartacus Schoolnet 8/2007)

Eugenio Martinez.Eugenio Martinez. [Source: public domain]President Nixon’s “Plumbers” unit, tasked to plug media leaks from administration officials and outsiders to the media, burglarizes the Los Angeles office of psychiatrist Lewis Fielding to find damaging information on Daniel Ellsberg, the former defense analyst and patient of Fielding who leaked the “Pentagon Papers” to the media. (Gerald R. Ford Library and Museum 7/3/2007) Ellsberg is a former Marine captain in Vietnam and protege of Henry Kissinger who had a change of heart over the war; he then leaked a secret set of Pentagon documents to the New York Times detailing how the Kennedy and Johnson administrations had secretly escalated the war in Vietnam (see June 13, 1971).
Watergate Connection - One of the burglars is Eugenio Martinez, who later is arrested as one of the five Watergate burglars (see 2:30 a.m.June 17, 1972). Martinez and two others—Felipe de Diego and the mission leader, E. Howard Hunt, who will supervise the Watergate burglary—are all old “CIA hands” heavily involved in anti-Castro activities. Martinez is still active in the CIA, as is Hunt, whom he often refers to by his old CIA code name of “Eduardo.” Another Watergate burglar, CIA agent Bernard Barker, is also involved in the Ellsberg burglary.
Martinez: Burglary a Near-Disaster - Hunt tells Martinez and Diego that they are to burglarize the offices of a “traitor” who is spying for the Soviet Union, and that the mission was ordered by the White House, where Hunt is now an aide. Barker tells the Cubans, “We have to find some papers of a great traitor to the United States, who is a son of a b_tch .” The men will become a unit outside the normal law enforcement and intelligence channels, operating within but not part of the CIA, FBI, and “all the agencies,” Martinez will later recall. They buy photographic equipment at Sears, and Hunt and Diego use disguises—wigs, fake glasses, false identification, and voice-altering devices. “Barker recognized the name on Hunt’s false identification—Edward J. Hamilton—as the same cover name Eduardo had used during the Bay of Pigs,” Martinez will recall. The planning, Martinez will recall, is far looser and less meticulous than “anything I was used to in the [CIA].” A disguised Hunt and Diego, masquerading as delivery men, deliver the photographic equipment to the office; later that night, they and Martinez break in and rifle the office. Martinez will write that Hunt and de Diego looked “kind of queerish” in their disguises, with their “Peter Lorre-type glasses, and the funny Dita Beard wigs” (see February 22, 1972). Before the break-in, Barker, who does not enter, whispers to Martinez, “Hey, remember this name—Ellsberg.” Martinez does not recognize the name. (Martinez and Barker 10/1974; Reeves 2001, pp. 369)
Comedy of Errors - The burglars wait for hours until the cleaning lady leaves for the night, and find the door to the building locked. At that point, a fifth man, “George,” whom Martinez learns is G. Gordon Liddy, another of the Watergate burglars also involved in the Ellsberg planning, appears and tells them to break in through a window. (Martinez and Barker 10/1974) Three burglars—Bernard Barker, Felipe de Diego, and Eugenio Martinez—perform the actual break-in, while Hunt and Liddy act as lookouts. (Reeves 2001, pp. 369) The burglary is quickly turning into a comedy of errors, Martinez will recall. “This was nothing new. It’s what the Company did in the Bay of Pigs when they gave us old ships, old planes, old weapons. They explained that if you were caught in one of those operations with commercial weapons that you could buy anywhere, you could be said to be on your own. They teach you that they are going to disavow you. The Company teaches you to accept those things as the efficient way to work. And we were grateful. Otherwise we wouldn’t have had any help at all. In this operation it seemed obvious—they didn’t want it to be traced back to the White House. Eduardo told us that if we were caught, we should say we were addicts looking for drugs.” Martinez finds nothing concerning Ellsberg in the office except for Fielding’s telephone book, which Martinez photographs. Before leaving, Martinez spills some pills from Fielding’s briefcase—“vitamin C, I think”—over the floor to make it seem as if the burglars had broken in looking for drugs. As they leave the office, Martinez spots a police car trailing them, but they are not stopped. “I thought to myself that the police car was protecting us. That is the feeling you have when you are doing operations for the government. You think that every step has been taken to protect you.”
Failure; Training for Bigger Mission? - Martinez feels that the burglary is a failure, but Hunt insists that they celebrate anyway. Martinez tells Diego that the break-in must either be a training exercise for a more important mission to come, or it was a cover operation for something else. “I thought to myself that maybe these people already had the papers of Ellsberg. Maybe Dr. Fielding had given them out and for ethical reasons he needed to be covered. It seemed that these people already had what we were looking for because no one invites you to have champagne and is happy when you fail,” he will write. Martinez’s CIA supervisor is strangely uninterested in the incident. “I was certain then that the Company knew about his activities,” Martinez will write. “But once again my CO did not pursue the subject.” (Martinez and Barker 10/1974) Hunt telephones Plumbers supervisor Egil Krogh at 4 a.m. to report that the burglary was a success but they found no files on Ellsberg. (Reeves 2001, pp. 369)

President Nixon’s personal lawyer, Herbert Kalmbach, delivers over $900,000 in secret campaign contributions to the Committee to Re-elect the President (CREEP). He has collected the money on Nixon’s orders, passing along Nixon’s instructions to donors, one of which is “Anybody who wants to be an ambassador must give at least $250,000.” In total, CREEP collects nearly $20 million, $2 million in cash. CREEP reports none of this money—and because the new campaign finance laws do not go into effect until April 7, the organization is not legally bound to declare it until that time. Some of the contributors are executives and corporations in trouble with the IRS or the Justice Department. Some are Democrats openly contributing to Democratic candidates and hedging their bets with contributions to Nixon and other Republicans. Much of the money is “laundered” through Mexican and Venezuelan banks. “Plumber” G. Gordon Liddy moves $114,000 through fellow “Plumber” Bernard Barker’s Miami bank accounts (see April-June 1972 and June 21, 1972). More money resides in safety deposit boxes in New York, Los Angeles, Washington, and Miami. “Plumber” E. Howard Hunt uses money from the campaign fund to recruit dozens of young men and women to spy on Democratic campaigns and report back to CREEP. (Reeves 2001, pp. 462-463)

According to Watergate burglar Eugenio Martinez (see 2:30 a.m.June 17, 1972), White House aide E. Howard Hunt, whom he calls by his old CIA code name “Eduardo” (see September 9, 1971), is ratcheting up the activities of the White House “Plumbers” operation. Martinez is not yet aware of the nature of the team’s operations, but believes he is part of a black-ops, CIA-authorized organization working to foil Communist espionage activities. Hunt gives team member Bernard Barker $89,000 in checks from Mexican banks to cash for operational funds, and orders Barker to recruit new team members. Barker brings in Frank Sturgis, Virgilio Gonzalez, and Reinaldo Pico, all veterans of the CIA’s activities against Cuba’s Fidel Castro. On May 22, the six—Hunt, Barker, Gonzalez, Martinez, Pico, and Sturgis—meet for the first time at the Manger Hays-Adams Hotel in Washington for Hunt’s first briefing. By this point, Martinez will later recall, G. Gordon Liddy, who had been involved in the burglary related to Pentagon Papers leaker Daniel Ellsberg, is involved. Hunt calls Liddy “Daddy,” and, Martinez recalls, “the two men seemed almost inseparable.” They meet another team member, James McCord, who unbeknownst to Martinez is an official with Nixon’s presidential campaign (see June 19, 1972). McCord is introduced simply as “Jimmy,” an “old man from the CIA who used to do electronic jobs for the CIA and the FBI.” McCord is to be the electronics expert.
Plans to Break into McGovern HQ - Martinez says that the group is joined by “a boy there who had infiltrated the McGovern headquarters,” the headquarters of the campaign of Democratic presidential candidate George McGovern. According to Hunt, they are going to find evidence proving that the Democrats are accepting money from Castro and other foreign governments. (Interestingly, Martinez will write that he still believes McGovern accepted Cuban money.) Hunt soon aborts the mission; Martinez believes “it was because the boy got scared.”
New Plans: Target the DNC - Instead, he and Liddy begin planning to burglarize the headquarters of the Democratic National Committee (DNC) in the Watergate hotel and office complex. They all move into the Watergate to prepare for the break-in. Martinez will recall: “We brought briefcases and things like that to look elegant. We registered as members of the Ameritus Corporation of Miami, and then we met in Eduardo’s room.” The briefing is “improvised,” Martinez will recall. Hunt says that the Castro funds are coming to the DNC, not McGovern’s headquarters, and they will find the evidence there. The plans are rather impromptu and indefinite, but Martinez trusts Hunt and does not question his expertise. (Martinez and Barker 10/1974)

Maurice Stans.Maurice Stans. [Source: Southern Methodist University]In a last campaign fundraising swing before April 7, when the new campaign finance laws go into effect, Maurice Stans, the financial chief for the Committee to Re-elect the President (CREEP), launches a final fundraising swing across the Southwest on behalf of Richard Nixon. Stans solicits contributions from Republicans and Democrats alike, and tells reluctant contributors that if they do not want their donations traced back to them, their anonymity can be ensured by moving their contributions through Mexican banks. Mexico does not allow the US to subpoena its bank records.
Laundering - “It’s called ‘laundering,’” Miami investigator Martin Dardis later tells Washington Post reporter Carl Bernstein on August 26, 1972. “You set up a money chain that makes it impossible to trace the source. The Mafia does it all the time. So does Nixon.… This guy Stans set up the whole thing. It was Stans’s idea.… Stans didn’t want any way they could trace where the money was coming from.” The same money-laundering system allows CREEP to receive illegal contributions from corporations, which are forbidden by law to contribute to political campaigns. Business executives, labor leaders, special-interest groups, even Las Vegas casinos can donate through the system. Stans uses a bank in Mexico City, the Banco Internacional; lawyer Manuel Ogarrio Daguerre handles the transactions. Stans keeps the only records.
Confirmed by Lawyer - Lawyer Robert Haynes confirms the setup for Bernstein, and says breezily: “Sh_t, Stans has been running this operation for years with Nixon. Nothing really wrong with it. That’s how you give your tithe.” Haynes calls the fundraising trip “Stans’s shakedown cruise.” Stans uses a combination of promises of easy access to the White House and veiled threats of government retaliation to squeeze huge donations out of various executives; Haynes says: “If a guy pleaded broke, [Stans] would get him to turn over stock in his company or some other stock. He was talking 10 percent, saying it was worth 10 percent of some big businessman’s income to keep Richard Nixon in Washington and be able to stay in touch.” Haynes represents Robert Allen, who runs the Nixon campaign’s Texas branch; Allen is merely a conduit for the illegal campaign monies. It is from the Banco Internacional account that Watergate burglar Bernard Barker is paid $89,000 (see April-June 1972) and the “Dahlberg check” of $25,000 (see August 1-2, 1972). (Bernstein and Woodward 1974, pp. 54-56)

Frank Sturgis, one of the Watergate burglars.Frank Sturgis, one of the Watergate burglars. [Source: Bettmann / Corbis]A covert unit of President Nixon’s “Plumbers” installs surveillance equipment in the headquarters of the Democratic National Committee in Washington’s Watergate hotel and office complex. The Washington police report an attempt to unscrew a lock on the door of the Committee’s office between 11 p.m. and 8 a.m., but do not know as yet who tried to force the lock. Some of the five men caught burglarizing the same offices six weeks later (see 2:30 a.m.June 17, 1972) are currently registered at the Watergate Hotel, according to subsequent police investigations. (Lewis 6/18/1972; Gerald R. Ford Library and Museum 7/3/2007)
Change of Plans - According to one of the burglary team (see April-June 1972), Eugenio Martinez, the original plan centers on a fake “banquet” in the Watergate hotel for their fake company, the Ameritus Corporation, to be held in a private dining room that has access to the elevators. While team leader and White House aide E. Howard Hunt hosts the banquet, Martinez and the other burglars will use the elevator to go to the DNC offices and “complete the mission.” Virgilio Gonzalez, a locksmith, will open the door; Frank Sturgis, Reinaldo Pico, and Felipe de Diego will act as lookouts; Bernard Barker will get the documents; Martinez will take photographs; and James McCord will “do his job,” apparently involving electronics that Martinez does not understand.
First Time Failure - Apparently they do not follow their plan. Instead, Hunt and the seven members of what Martinez calls “McCord’s army” enter the Watergate complex at midnight, and they enter and sign in under the eye of a policeman. McCord explains that they are all going to work at the Federal Reserve offices on the eighth floor, an explanation Martinez feels is shaky. They are unable to get in through the doors of the sixth floor, and are forced to cancel the operation. Martinez recalls that while the others attempt to get in to the sixth floor, McCord is busy doing something else on the eighth floor; at 2 a.m., he sees McCord on the eighth floor talking to two guards. What McCord is doing, Martinez does not know. “I did not ask questions, but I thought maybe McCord was working there,” he will later recall. “It was the only thing that made sense. He was the one who led us to the place and it would not have made sense for us to have rooms at the Watergate and go on this operation if there was not someone there on the inside.” Hunt is furious at the failure to get into the DNC offices, and reschedules the operation for the next night. Gonzales flies to Miami and brings back his entire set of lockpicking tools. Martinez questions the laxity of the plan—the lack of floor plans, information about the elevators, knowledge of the guards’ schedules, and no contingency plans for failure. Hunt tells him, through Barker: “You are an operative. Your mission is to do what you are told and not to ask questions.”
Success - The second try is successful. Gonzalez and Sturgis get through the doors and usher everyone in, with one of them calling over their walkie-talkie, “The horse is in the house.” Martinez recalls taking “thirty or forty” photographs of campaign contributor documents, and McCord plants three phone taps, telling the others that while the first two might be discovered, the third will not. They return to their hotel rooms about 5 a.m. (Martinez and Barker 10/1974)

Frank Wills, the security guard who discovers the taped doors and alerts the DC police.Frank Wills, the security guard who discovers the taped doors and alerts the DC police. [Source: Bettmann / Corbis]Five burglars (see June 17, 1972) are arrested at 2:30 a.m. while breaking in to the Democratic National Committee (DNC) Headquarters offices in Washington’s Watergate hotel and office complex; the DNC occupies the entire sixth floor. (Lewis 6/18/1972; Gerald R. Ford Library and Museum 7/3/2007)
Discovery - They are surprised at gunpoint by three plainclothes officers of the DC Metropolitan Police. Two ceiling panels have been removed from the secretary’s office, which is adjacent to that of DNC chairman Lawrence O’Brien. It is possible to place a surveillance device above those panels that could monitor O’Brien’s office. The five suspects, all wearing surgical gloves, have among them two sophisticated voice-activated surveillance devices that can monitor conversations and telephone calls alike; lock-picks, door jimmies, and an assortment of burglary tools; and $2,300 in cash, most of it in $100 bills in sequence. They also have a walkie-talkie, a shortwave receiver tuned to the police band, 40 rolls of unexposed film, two 35mm cameras, and three pen-sized tear gas guns. Near to where the men are captured is a file cabinet with two open drawers; a DNC source speculates that the men might have been preparing to photograph the contents of the file drawers.
Guard Noticed Taped Door - The arrests take place after a Watergate security guard, Frank Wills, notices a door connecting a stairwell with the hotel’s basement garage has been taped so it will not lock; the guard removes the tape, but when he checks ten minutes later and finds the lock taped once again, the guard calls the police. The police find that all of the stairwell doors leading from the basement to the sixth floor have been similarly taped to prevent them from locking. The door leading from the stairwell to the DNC offices had been jimmied. During a search of the offices, one of the burglars leaps from behind a desk and surrenders. (Lewis 6/18/1972) The FBI agents responding to the burglary are initially told that the burglars may have been attempting to plant a bomb in the offices. The “bomb” turns out to be surveillance equipment. (O.T. Jacobson 7/5/1974 pdf file)
Last Mission for Martinez - One of the burglars, Cuban emigre and CIA agent Eugenio Martinez, will recall the burglary. They have already successfully burglarized a psychiatrist’s office in search of incriminating material on Pentagon Papers leaker Daniel Ellsberg (see September 9, 1971), and successfully bugged the DNC offices less than a month previously (see May 27-28, 1972), but Martinez is increasingly ill at ease over the poor planning and amateurish behavior of his colleagues (see Mid-June 1972). This will be his last operation, he has decided. Team leader E. Howard Hunt, whom Martinez calls by his old code name “Eduardo,” is obviously intrigued by the material secured from the previous burglary, and wants to go through the offices a second time to find more. Martinez is dismayed to find that Hunt has two operations planned for the evening, one for the DNC and one for the campaign offices of Democratic candidate George McGovern. Former CIA agent and current Nixon campaign security official James McCord (see June 19, 1972), the electronics expert of the team, is equally uncomfortable with the rushed, almost impromptu plan. Hunt takes all of the burglars’ identification and puts it in a briefcase. He gives another burglar, Frank Sturgis, his phony “Edward J. Hamilton” ID from his CIA days, and gives each burglar $200 in cash to bribe their way out of trouble. Interestingly, Hunt tells the burglars to keep the keys to their hotel rooms. Martinez later writes: “I don’t know why. Even today, I don’t know. Remember, I was told in advance not to ask about those things.”
Taping the Doors - McCord goes into the Watergage office complex, signs in, and begins taping the doors to the stairwells from the eighth floor all the way to the garage. After waiting for everyone to leave the offices, the team prepares to enter. Gonzalez and Sturgis note that the tape to the basement garage has been removed. Martinez believes the operation will be aborted, but McCord disagrees; he convinces Hunt and the other team leader, White House aide G. Gordon Liddy, to continue. It is McCord’s responsibility to remove the tape once the burglars are inside, but he fails to do so. The team is well into the DNC offices when the police burst in. “There was no way out,” Martinez will recall. “We were caught.” Barker is able to surreptitiously advise Hunt, who is still in the hotel, that they have been discovered. Martinez will later wonder if the entire second burglary might have been “a set-up or something like that because it was so easy the first time. We all had that feeling.” The police quickly find the burglars’ hotel keys and then the briefcase containing their identification. As they are being arrested, McCord, who rarely speaks and then not above a whisper, takes charge of the situation. He orders everyone to keep their mouths shut. “Don’t give your names,” he warns. “Nothing. I know people. Don’t worry, someone will come and everything will be all right. This thing will be solved.” (Martinez and Barker 10/1974; Spartacus Schoolnet 8/7/2007)
'Third-Rate Burglary' - White House press secretary Ron Ziegler will respond to allegations that the White House and the Nixon presidential campaign might have been involved in the Watergate burglary by calling it a “third-rate burglary attempt,” and warning that “certain elements may try to stretch this beyond what it is.” (Stern and Johnson 5/1/1973) The Washington Post chooses, for the moment, to cover it as a local burglary and nothing more; managing editor Howard Simons says that it could be nothing more than a crime committed by “crazy Cubans.” (Bernstein and Woodward 1974, pp. 19)
CIA Operation? - In the weeks and months to come, speculation will arise as to the role of the CIA in the burglary. The Nixon White House will attempt to pin the blame for the Watergate conspiracy on the CIA, an attempt forestalled by McCord (see March 19-23, 1973). In a 1974 book on his involvement in the conspiracy, McCord will write: “The Watergate operation was not a CIA operation. The Cubans may have been misled by others into believing that it was a CIA operation. I know for a fact that it was not.” Another author, Carl Oglesby, will claim otherwise, saying that the burglary is a CIA plot against Nixon. Former CIA officer Miles Copeland will claim that McCord led the burglars into a trap. Journalist Andrew St. George will claim that CIA Director Richard Helms knew of the break-in before it occurred, a viewpoint supported by Martha Mitchell, the wife of Nixon campaign director John Mitchell, who will tell St. George that McCord is a “double agent” whose deliberate blunders led to the arrest of the burglars. No solid evidence of CIA involvement in the Watergate conspiracy has so far been revealed. (Spartacus Schoolnet 8/2007)

Headline from Washington Post identifying McCord as a ‘GOP Security Aide.’Headline from Washington Post identifying McCord as a ‘GOP Security Aide.’ [Source: Washington Post]James McCord, one of the five Watergate burglars (see June 17, 1972), is identified as the security director for the Committee to Re-elect the President (CREEP). McCord is also identified as a security consultant for the Republican National Committee (RNC), where he has maintained an office since January 1. After his arrest, McCord used a phony name to the police and the court, which kept his identity unclear for two days. The director of CREEP, former attorney general John Mitchell, originally denies that McCord is a member of the campaign, and merely identifies him as a Republican security aide who helped CREEP install a security system. (McCord has his own security business in Maryland, McCord Associates (see June 18, 1972).) (Woodward and Bernstein 6/19/1972; Gerald R. Ford Library and Museum 7/3/2007) Washington Post reporter Bob Woodward learns that McCord is a member of a small Air Force Reserve unit in Washington attached to the Office of Emergency Preparedness (OEP); the OEP, says a fellow reservist, is tasked with compiling lists of “radicals” and developing contingency plans for censorship of the news media and the US mail in time of war. (Bernstein and Woodward 1974, pp. 23) RNC chairman Bob Dole says that McCord provided similar services for that organization, and says of the burglary, “we deplore action of this kind in or out of politics.” Democratic Party chairman Lawrence O’Brien, whose offices were burgled and subject to electronic surveillance, says the “bugging incident… raised the ugliest questions about the integrity of the political process that I have encountered in a quarter century,” and adds, “No mere statement of innocence by Mr. Nixon’s campaign manager will dispel these questions.” (O’Brien has inside knowledge of the White House connections (see June 17, 1972).) O’Brien calls on Mitchell’s successor, Attorney General Richard Kleindienst, to order an immediate, “searching professional investigation” of the entire matter by the FBI. The FBI is already mounting an investigation. (Woodward and Bernstein 6/19/1972; Gerald R. Ford Library and Museum 7/3/2007)

Nixon and Haldeman, three days after the June 23 meeting.Nixon and Haldeman, three days after the June 23 meeting. [Source: Washington Post]With the FBI tracing the Watergate burglars’ $100 bills to GOP fundraiser Kenneth Dahlberg (see August 1-2, 1972), President Nixon orders the CIA to attempt to stop the FBI from investigating the Watergate conspiracy, using the justification of “national security.” One of the areas Nixon specifically does not want investigated is the $89,000 in Mexican checks found in the account of one of the Watergate burglars, Bernard Barker (see April-June 1972). (Reeves 2001, pp. 508-510; Woodward 2005, pp. 59-60) Author James Reston Jr. will write in 2007: “The strategy for the CIA to block the FBI’s investigation of the Mexican checks… was devised by Haldeman and Nixon. This was a clear obstruction of justice.” (Reston 2007, pp. 33-34) The plan, concocted by Nixon campaign chief John Mitchell, is to have deputy CIA director Vernon Walters tell the new FBI Director, L. Patrick Gray, to, in the words of Nixon chief of staff H. R. Haldeman, “stay the hell out of this… this is, ah, business we don’t want you to go any further on it.” Nixon approves the plan. White House aide John Ehrlichman will later testify that he is the one tasked with carrying out Nixon’s command; Nixon tells Ehrlichman and Haldeman to have the CIA “curb the FBI probe.” (O.T. Jacobson 7/5/1974 pdf file)
Nixon: FBI, CIA Should Back out of Investigation - In his discussion with Nixon, Haldeman says that “the FBI is not under control, because Gray doesn’t exactly know how to control them, and they have, their investigation is now leading into some productive areas, because they’ve been able to trace the money… and it goes in some directions we don’t want it to go.” Haldeman also says that the FBI has a witness in Miami who saw film developed from one of the Watergate burglaries (see Mid-June 1972). He tells Nixon that the FBI is not aware yet that the money for the burglars can be traced to Dahlberg, who wrote a $25,000 check that went directly to one of the Watergate burglars. That check is “directly traceable” to the Mexican bank used by the Nixon re-election campaign (CREEP). Haldeman says that he and Ehrlichman should call in both Gray and CIA Director Richard Helms and tell both of them to have their agencies back out of any investigation. Nixon agrees, saying that considering Hunt’s involvement: “that will uncover a lot of things. You open that scab there’s a hell of a lot of things and that we just feel that it would be very detrimental to have this thing go any further. This involves these Cubans, Hunt, and a lot of hanky-panky that we have nothing to do with ourselves.” Haldeman says he believes that Mitchell knew about the burglary as well, but did not know the operational details. “[W]ho was the assh_le who did?” Nixon asks. “Is it [G. Gordon] Liddy? Is that the fellow? He must be nuts.” Haldeman says Mitchell pressured Liddy “to get more information, and as [Liddy] got more pressure, he pushed the people harder to move harder on.…” Both Nixon and Haldeman think that the FBI may believe the CIA, not the White House, is responsible for the burglary; Nixon says: “… when I saw that news summary item, I of course knew it was a bunch of crap, but I thought ah, well it’s good to have them off on this wild hair thing because when they start bugging us, which they have, we’ll know our little boys will not know how to handle it. I hope they will though. You never know. Maybe, you think about it. Good!” A short time later in the conversation, Nixon instructs Haldeman to tell his staffers not to directly lie under oath about their knowledge of the burglary, but to characterize it as “sort of a comedy of errors, bizarre,” and warn the FBI that to continue investigating the burglary would “open the whole Bay of Pigs thing up again. And, ah, because these people are plugging for, for keeps and that they should call the FBI in and say that we wish for the country, don’t go any further into this case.… That’s the way to put it, do it straight.” (AMDOCS Documents for the Study of American History 6/1993) Later in the day, both Walters and CIA Director Richard Helms visit Haldeman to discuss the situation. Helms says that he has already heard from Gray, who had said, “I think we’ve run right into the middle of a CIA covert operation.” Helms and Walters both agree to pressure Gray to abandon the investigation, but their efforts are ineffective; the assistant US attorney in Washington, Earl Silbert, is driving the investigation, not the FBI. (Reeves 2001, pp. 508-510)
Gray: Improper Use of FBI - Soon after Nixon’s order, acting FBI Director L. Patrick Gray tells Nixon that his administration is improperly using the CIA to interfere in the FBI’s investigation of Watergate. Gray warns Nixon “that people on your staff are trying to mortally wound you.” Gray is himself sharing Watergate investigation files with the White House, but will claim that he is doing so with the approval of the FBI’s general counsel. (Purdom 7/7/2005) It is unclear whether Gray knows that Nixon personally issued the order to the CIA. Soon after the order is issued, a number of the FBI agents on the case—15 to 20 in all—threaten to resign en masse if the order is carried out. One of the agents, Bob Lill, will later recall: “There was certainly a unanimity among us that we can’t back off. This is ridiculous. This smacks of a cover-up in itself, and we’ve got to pursue this. Let them know in no uncertain terms we’re all together on this. [T]his request from CIA is hollow.” (Woodward 2005, pp. 189-191) No such mass resignation will take place. Because of evidence being classified and redacted (see July 5, 1974), it will remain unclear as to exactly if and how much the CIA may have interfered in the FBI’s investigation.
'Smoking Gun' - The secret recording of this meeting (see July 13-16, 1973), when revealed in the subsequent Watergate investigation, will become known as the “smoking gun” tape—clear evidence that Nixon knew of and participated in the Watergate cover-up. (Washington Post 2008)

A staff member of the Committee to Re-elect the President (CREEP), G. Gordon Liddy, is fired after he refuses to answer FBI questions about his possible involvement in the Watergate burglaries (see 2:30 a.m.June 17, 1972). (Bernstein and Woodward 8/1/1972) Liddy is willing to tell the FBI that he personally misappropriated the campaign money channeled through the bank account of fellow burglar Bernard Barker (see June 21, 1972), specifically the $25,000 from CREEP finance official Kenneth Dahlberg (see August 1-2, 1972) and the $89,000 from Gulf Resources, Inc. channeled through Mexican lawyer Manuel Ogarrio (see April-June 1972 and Before April 7, 1972). Liddy is also willing to say that when CREEP discovered the money had been raised improperly, his superiors ordered him to return the money as the law requires, but instead he decided on his own to use it for covert political operations. “A true believer,” President Nixon says about Liddy. “We’ll take care of him… we’ll wait a discreet interval and pardon him.” (Reeves 2001, pp. 512)
Hunt Dodging FBI - Fellow Watergate burglar E. Howard Hunt is battling in court to avoid testifying to FBI investigators. Hunt’s whereabouts are currently unknown. (Bernstein and Woodward 8/1/1972) Hunt, a former FBI agent, worked for the White House as a member of Nixon aide John Ehrlichman’s staff until December 1971, when he joined CREEP as the committee’s general counsel. He had soon after been appointed CREEP’s financial counsel, handling legal advice on campaign finances and contributions. CREEP spokesman Devan Shumway says Hunt had no connection to the committee’s security or intelligence gathering operations. (Bernstein and Woodward 1974, pp. 34-35)

Vice President George Bush hosts a secret meeting with his foreign policy adviser, Donald Gregg (see 1982), and former CIA agent Felix Rodriguez. The meeting is the first impetus of the National Security Council (NSC)‘s initiative to secretly, and illegally, fund the Nicaraguan Contras in an attempt to overthrow that country’s socialist government. Rodriguez agrees to run a central supply depot at Ilopango Air Base in El Salvador. In a memo to NSC chief Robert McFarlane, Gregg will note that the plan is rooted in the experience of running “anti-Vietcong operations in Vietnam from 1970-1972.” Gregg will also note that “Felix Rodriguez, who wrote the attached plan, both worked for me in Vietnam and carried out the actual operations outlined above.” (Spartacus Schoolnet 12/28/2007) Rodriguez and Gregg, along with others such as Watergate burglar Frank Sturgis (see April-June 1972), were part of the CIA’s “Operation 40,” an assassination squad that operated in Cuba and the Caribbean during the late 1950s and early 1960s. Rodriguez tried at least once, in 1961, to assassinate Cuban dictator Fidel Castro. In 1967, Rodriguez interrogated and executed South American revolutionary Che Guevara. He was part of the infamous and shadowy Operation Phoenix during the Vietnam War. (Spartacus Schoolnet 1/17/2008)


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