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Profile: Kenneth H. Dahlberg

Kenneth H. Dahlberg was a participant or observer in the following events:

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)

CIA Director Richard Helms confers with FBI Director L. Patrick Gray over the FBI’s investigation into the Mexican bank account apparently used to launder illegal campaign contributions (see Before April 7, 1972). Helms tells Gray that the Midwest finance chairman of the Nixon campaign, Kenneth Dahlberg, last had contact with the CIA in 1961. The FBI is not sure what the nature of this contact between Dahlberg and the CIA is. The next day, Gray tells his deputy, Mark Felt, that neither Dahlberg nor Mexican lawyer Manuel Ogarrio Daguerre (see Before April 7, 1972) are to be interviewed because of “national security considerations.” The CIA’s deputy director, Vernon Walters, will tell Gray on June 27 and 28 that neither Dahlberg nor Ogarrio have any connection with the agency, and the CIA has no reason to object to their being interviewed. Gray will give belated permission for the FBI to interview the two on July 6, 1972. Dahlberg will initially lie to the FBI about some of the money he collected that found its way into the account of one of the Watergate burglars (see 2:30 a.m.June 17, 1972). Ogarrio will also be interviewed, but only after Dean reverses his initial decision not to allow the FBI to talk with him. (Note on source: This information comes from a 1974 FBI report about the efficacy of the investigation; much of the information in these sections concerning the CIA is redacted. Also, another section of the FBI report says that Gray canceled the meeting with Helms at the request of Nixon aide John Ehrlichman.) (O.T. Jacobson 7/5/1974 pdf file)

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)

Nixon campaign finance manager Kenneth H. Dahlberg, the subject of a Washington Post article that shows he handled a check that was found in the account of a Watergate burglar (see August 1-2, 1972), confirms to Post reporter Bob Woodward that he gave the check to Nixon campaign finance chief Maurice Stans on April 11. Dahlberg says he knows nothing about any improprieties. “Obviously I’m caught in the middle of something,” Dahlberg says. “What it is I don’t know.” (Bernstein and Woodward 1974, pp. 45-47)


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