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Profile: Hughes Corporation
Hughes Corporation was a participant or observer in the following events:
A small team of investigators working for the Senate Watergate Committee issues a preliminary report about the suspicious $100,000 gift made to the Nixon re-election campaign by President Nixon’s close friend, Charles “Bebe” Rebozo, which may have been disbursed illegally to Nixon’s family and friends, and perhaps to Nixon himself. Nixon has angrily declared the entire matter off-limits, but a four-man team of investigators, headed by former assistant US attorney Terry Lenzner, has uncovered much of the truth behind the Rebozo gift. The investigators have until May 28, when the entire Watergate Committee is slated to terminate its proceedings. Lenzner and his team were greatly aided by testimony from Nixon’s personal attorney, Herbert Kalmbach, who testified before the committee and was later found guilty of taking part in the Watergate conspiracy (see February 25, 1974). Kalmbach said that Rebozo had asked him about the potential illegal use of the donations, but then changed his mind and claimed he had never made the donations in the first place (see April 30 - May 1, 1973). In his own testimony, Rebozo denied ever asking Kalmbach anything about the donations; Kalmbach must have “misunderstood.” However, the evidence shows otherwise. Lenzner’s investigators believe that Rebozo did indeed make the donations, and that they were indeed illegally disbursed to Nixon’s friends, brothers, and other unnamed people, as Rebozo had originally claimed. The investigators have found that in April 1973, when he first spoke to Kalmbach, Rebozo was looking for a fast, safe way to replace the cash so he could safely claim that he had never made the donation. Lenzner believes that Rebozo secured the replacement cash from another millionaire friend of Nixon’s, financier Robert Abplanalp, through Abplanalp’s lawyer, William Griffin. In May 1973, Lenzner believes that Rebozo and Hughes Corporation executive Richard Danner, the original source of the contribution, met with Nixon, where Abplanalp provided the cash to replace the missing $100,000. Lenzner hopes to secure IRS files on Rebozo that will confirm the team’s findings. Lenzner believes that White House lawyer Fred Buzhardt was in charge of what he calls the “Hughes-Rebozo cover-up.” Buzhardt testified once before the committee, but was able to recall so little that he has been summoned to testify a second time. “It was an incredible performance,” says one committee investigator. “He couldn’t remember anything—not even what he was doing two days before he testified.” Ultimately, little will come of Lenzner’s investigation. [Time, 5/6/1974]
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