[00.02.00--in to Jeb MAGRUDER testifying] Mr. MAGRUDER.....without his prior approval, which in a sense was a negative approval. We, let Mr. Strachan know that we, were contemplating hiring Mr. Liddy through Mr. Dean. There were some salary discrepancies and discussions with another assistant of Mr. Haldeman's When that was straightened out, in fact, that led to a memo which I sent to Mr. Haldeman explaining all the individuals who had been hired from the, White House, at, -what salary, and so on. Mr. Liddy is included in that memo. Mr. DASH. So Mr. Haldeman was involved in solving the salary setup? Mr. MAGRUDER. That is correct; yes. Mr. DASH. Now, when -Mr. Liddy told Mr. Mitchell and you after you had gone over the Gemstone file with him. and when Mr. Mitchell said he was dissatisfied. and he said that he was going to correct the errors, did Mr. Mitchell or you say no; don't do it? Mr. MAGRUDER. No. Mr. DASH. Isn't it true, also, Mr. Magruder, THAT you did give Mr. Howard some information that you had received, information from that operation? Mr. MAGRUDER. Yes: in a number of informal discussions with him. I indicated that, we would have information forthcoming and that If he could work with Mr. Strachan who was the conduit, we Would probably be able to provide them. Mr. Colson headed up the group called the--- Mr. DASH. This was Gemstone you were referring to ? Mr. MAGRUDER. Yes: I was referring to Gemstone, but to be fair. to Mr. Howard, I didn't say this was Gemstone information coming from wiretaps, Mr. DASH. Now. did you have any discussion -with Sally Harmony prior to her testimony? Mr. MAGRUDER. Yes. Mr. DASH. 'Could you give us briefly what that, discussion was? Mr. MAGRUDER. It was the type of discussion we had with a number Of employees who were being questioned by the U.S. attorney's office: generally speaking, that we hoped they would do nothing that would affect the President's election type of discussion Other people did discuss With others, Miss Harmony and other people, more detailed facts about this. Mr. DASH. What did she say to you when you said that? Mr. MAGRUDER. She indicated that there would be, no problem with her testimony. Mr. DASH. Did you make that report to Mr. Mitchell? Mr. MAGRUDER. Again, I think there were other individuals who were more directly involved with talking with people who were Prospective witnesses I think I probably did mention when we found out that we were not going to have a problem. Mr. DASH. Did Mr. LaRue toll you what his role was in the coverup? I think you mentioned him by name? Mr. MAGRUDER. Yes; he worked, of course, on the funds end of it. Mr. DASH. Did he say what I told you? Mr. MAGRUDER. He simply told me, that he was parceling out the cash, in effect. Mr. DASH. Can YOU be more specific? Mr. MAGRUDER. I really can't, because the, only direct reference was, did I know somebody who could make a drop for him to one of the defendants in Miami. So -he didn't go Into detail as to how he was doing it, so it would be, very difficult for me to be more specific. Mr. DASH. Did he tell you where he was getting the money? Mr. MAGRUDER. I think there, was, some reference to the, $350,000 made. Mr. DASH. What $350,000? Mr. MAGRUDER. That was transferred over to Mr. Haldeman and", Mr. Strachan and then transferred back. Mr. DASH. Is that the $350,000 that appears there, that was taken from Mr. Sloan's safe? Mr. MAGRUDER. As a matter of fact, Mr. LaRue did tell me when Mr. Strachan brought that back, Mr. Strachan wanted a receipt. Mr. LaRue said "I won't give you a receipt." so Mr. Strachan just. gave him the money. Mr. DASH. That is when Mr. Strachan brought it back from the White, House? Mr. MAGRUDER. To Mr. LaRue. Mr. DASH. You said when the, question of the, coverup -was about to be developed, you were ready yourself to take the blame--actually, to resign. Mr. MAGRUDER, I had suggested it hopefully was a. secondary alternative. Mr. DASH. But you said it wasn't picked up. Who didn't pick it up? Mr. MAGRUDER. I think it was picked up for a period -of time and I think there was serious discussion. Mr. DASH. Who decided not to? Mr. MAGRUDER. Mr. Mitchell told me they did not accept my offer. Mr. DASH. Isn't it, true that Mr. Haldeman told YOU that the President wanted you to stay on? Mr. MAGRUDER. Yes; that, is correct. Mr. Haldeman told -me when Mr. MacGregor became campaign director, he wanted me to stay as deputy campaign director. Mr. DASH. That was after Mr. Mitchell was to leave? Mr. MAGRUDER. That is correct,. [00.06.23] Mr. DASH. Is it true that there -was so-me discussion In the earlier meeting, especially after the February 4 meeting in Mr. Mitchell's office, that there had to be some deniability for Mr. Mitchell? Mr. MAGRUDER. Yes, Mr. Dean brought that subject up Mr. DASH, Can you tell us how he brought that subject up? Mr. MAGRUDER. "Toward. the end of the meeting--again we were getting into these very sensitive, matters and I think Mr. Dean said it would be appropriate in the future that we not hold meetings with Mr. Mitchell in his office, but that Gordon and you and I, meaning myself, matters came up and that I become a, conduit to Mr. Mitchell, so Mr. Liddy would not have to deal with Mr. Mitchell directly. Mr. DASH. When Mr. Dean was appearing at these meetings and was working with you later on the break-in, Was It, your impression that he was acting alone or in his capacity as a White House assistant? Mr. MAGRUDER. He was working with Mr. Mitchell, so in effect, he was helping Mr. Mitchell, Again, it is an unfair assumption for me to make as to whether he was or wasn't working under direct orders of Mr. Haldeman or Mr. Ehrlichman. I do not know. [00.07.29]