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Context of 'June 28, 1972: Liddy Fired; Hunt Attempting to Avoid Testimony'

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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 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)

President Nixon and chief of staff H. R. Haldeman discuss a suggestion by Nixon campaign chief John Mitchell regarding the Watergate burglary and bugging (see 2:30 a.m.June 17, 1972). Mitchell believes that burglar G. Gordon Liddy should take the entire blame for the burglary, and confess to being the operation’s “mastermind.” “You mean you’d have Liddy confess and say he did it unauthorized?” Nixon asks. Haldeman affirms the question. After further discussion, Nixon says: “The reaction is going to be primarily Washington and not the country, because I think the country doesn’t give much of a sh_t about it other than the ones we’ve already bugged.… Everybody around here is all mortified by it. It’s a horrible thing to rebut [whereas] most people around the country think this is routine, that everybody’s trying to bug everybody else, it’s politics.” Nixon is struck with a new idea during the conversation—use every accusation of the Watergate bugging to claim that it only proves the Democrats were bugging the Nixon campaign. Maybe they should plant a bug on themselves and claim the Democrats planted it, Nixon suggests. Haldeman circles the conversation back to Liddy, and Nixon asks, “Is Liddy willing?” Haldeman replies: “He says he is. Apparently he is a little bit nuts… apparently he’s sort of a Tom Huston-type guy (see June 5, 1970).… He sort of likes the dramatic. He’s said, ‘If you want to put me before a firing squad and shoot me, that’s fine. I’d kind of like to be like Nathan Hale.’” (Reeves 2001, pp. 505-506)

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)

The Washington Post reports that a $25,000 cashier’s check, apparently earmarked for the campaign to re-elect President Nixon, found its way into the Miami bank account of one of the Watergate burglars, Bernard Barker (see 2:30 a.m.June 17, 1972). (Gerald R. Ford Library and Museum 7/3/2007)
Origin of Check - The check, drawn on a Boca Raton, Florida bank, was made out to Kenneth H. Dahlberg, the finance manager for the Committee to Re-elect the President (CREEP). Dahlberg says that in early April, he gave the check to “the treasurer of the Committee [Hugh Sloan, who has since quit the committee and is cooperating with the FBI investigation] or to Maurice Stans himself.” Stans, formerly Nixon’s secretary of commerce, is CREEP’s finance chief. The money is made up of “[c]ontributions I collected in my role as Midwest finance chairman,” Dahlberg explains. “In the process of fund-raising I had accumulated some cash… so I recall making a cash deposit while I was in Florida and getting a cashier’s check made out to myself. I didn’t want to carry all that cash into Washington.”
Watergate Connections - Barker withdrew much of the money from the same Boca Raton bank account, in $100 bills. 53 of those bills were found on the five Watergate burglars after their arrest. Clark MacGregor, who replaced former Attorney General John Mitchell as the head of CREEP (see July 1, 1972), says he knows nothing about the check or the money found on Barker and the other burglars: “[T]hese events took place before I came aboard. Mitchell and Stans would presumably know.” The Post also learns that another $89,000 in four separate checks were deposited in Barker’s Miami bank account in May (see June 23, 1972). The checks were originally made out to Mexican lawyer Manuel Ogarrio Daguerre, on an account at Mexico’s Banco Internacional. While looking over the story before publication, Post editor Barry Sussman says: “We’ve never had a story like this. Just never.” (Bernstein and Woodward 8/1/1972; Bernstein and Woodward 1974, pp. 43-44)
GAO Will Investigate Nixon Campaign Finances - Stans’s secretary says her boss cannot comment on the story because he is “agoniz[ing] over the confusing circumstances” and does not want to say anything that might compromise his integrity. Philip S. Hughes, the director of the Federal Elections Division of the General Accounting Office (GAO, the investigative arm of Congress), says that the story reveals “for the first time [that] the bugging incident was related to the campaign finance law.… There’s nothing in Maury [Stans]‘s reports showing anything like that Dahlberg check.” Hughes says his office intends to fully audit the Nixon campaign finances. (Bernstein and Woodward 1974, pp. 45-47)


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