Senate Select Committee on Presidential Campaign Activities, June 25, 1973
Senate Select Committee on Presidential Campaign Activities, June 25, 1973
[00.25.04-DEAN discusses the existence of a $350,000 slush fund in the White House that was used to pay off the defendants in the WATERGATE case] The $3.50,000 fund, as I have indicated, was held by !Strachan but I do not, know where he held it. It was shortly before Mr. Sloan was being called to testify in July that discussions commenced on how to make the $350,000 fund whole and get it out of the White House. There was no easy answer, because there was no place to ,send it out without, reporting requirements. The concern was that 'Mr. Sloan Would testify that he was aware of the disbursal of the $350,000 to the White House This, in turn, would, have, created two problems: The White House would have been accused of having a secret slush fund if this became public. and second, a $6,800 expenditure out of a $22,000 authorization which had been made presented a potential campaign act violation for Haldeman, Colson, and Howard. I had numerous discussions about, how to handle this problem with Mr. Stans and Mr. Parkinson but there was no easy answer. I also discussed this matter with Mr. Haldeman, telling him that there was no easy answer. Finally, after the election, Stans indicated" he had cash available and it was decided that, Stans should provide $22,000 to Strachan to make the funds whole, and then they could be removed from the, White House and, if necessary reported. This plan was approved by Haldeman and Stans was so informed . On the morning of November 28, Stans called to request that Strachan. come to his office, to receive. money that, he had available. I do not know the source of the money or whether it. was Campaign money or any of the details about the $22,000 that Stans had made available. I could not locate, Strachan and Stans indicated that it should be, picked up immediately but I cannot recall at this time the reason be called for the, immediacy. Accordingly I asked Mr. Fielding to pick up a package from Stans an and give it to Strachan as soon as he could. I informed Stans that Fielding would be over to pick up the package but he would not know what. be -was picking up and -when I later learned that Stans had informed Fielding I was somewhat annoyed because I felt it was unfair to Fielding. The, money was then given by Fielding to Strachan but no final decision had been made regarding how to dispose. of the $350,000. Having explained the status of the cash at the, White House, I must now return to the pressure that was, being placed on the White House for the use of these funds which I have- just described for payments to the seven indicted individuals. [00.27.44] This pressure began long before election day in that Paul O'Brien was receiving Messages from William Bittman, Hunt's lawyer, that, Hunt and others expected to have more support, money and attorney's fees in exchange for continued silence. The initial payments by Kalmbach had not been sufficient. O'Brien reported this frequently to Mitchell, 'Mardian, LaRue, and myself. I, in turn. was reporting to Haldeman and Ehrlichman. There were discussions in late July, August, and September of using these funds at the White House. for these payments. I informed Haldeman of these discussions, but they were. still in the discussion stage and no action was taken. [00.28.29] After the election. the pressure was greatly increased when Colson received a call from Mr. Hunt, which Colson recorded. Colson brought the recorded call to me and I, in turn, transcribed it onto a cassette, tape. I have been informed by the committee counsel that the committee has in its possession a transcript of the conversation between Colson and Hunt in which Hunt makes, demands for money. [00.28.54-HALDEMAN and EHRLICHMAN involved in the payoff] On November 15, 1 arranged a meeting -with Haldeman and Ehrlichman so that they could hear the tape of the Conversation Colson had had with Hunt and also -to inform them of the increased and now threatening demands that were being transmitted through Hunt's lawyer to Mr. O'Brien and in turn on to the White House. Haldeman and Ehrlichman were at Camp David at that time developing the plans for the reorganization of the executive branch for the Second term of the -Nixon administration I departed on the morning of 'November 15 for Camp David with Mr. Walter Minnick, who was going to Camp David to discuss the reorganization plans with Ehrlichman. Mr. Minnick had been doing virtually all of the work at that time -for Ehrlichman on the reorganization plan and was a member of Ehrlichman's staff. 'In fact. I that the country counsel's office had not been more involved. or involved at all. prior to that in the reorganization plans. After arriving at Camp -David, Ehrlichman, Haldeman, and I went into the President's office in Laurel Lodge. I have referred earlier to the fact that in this meeting the matter of Dwight Chapin's remaining at the White House was discussed. [00.30.01] It was after that that I told them of the telephone conversation between Hunt and Colson and played the tape for them and I also told them of the increasing demands being made, for money. I told them I was going to New York that, afternoon because Mitchell had requested that, I come visit him regarding the demand being made and told them I would also play the tape for him. My instructions from this meeting were to tell Mitchell to take, care, of all these problems. [00.30.27]