September 16, 1972

US Agr Dept on Sept 15 acknowledges that on Aug 24 C W Pence, dir of dept's Grains Division, called 6 principal cos selling wheat to USSR and gave them 24-hr advance notice of change in Nixon Adm's new policy on export subsidies, HR Livestock and Grains Subcom hearing; maintains, however, that information was not particularly useful since cos were informed that new policy would be effective retroactively to close of business day on Aug 23; Agr Sec Butz and Asst Internatl Affairs Sec Brunthaver deny knowledge of Pence's actions; Brunthaver later acknowledges that disclosure of sale 'would have been helpful' to cos if they had acted to conclude contracts before close of business on Aug 24; Pence's alleged conversation with reporters on details of grain sale described; effect of new subsidies on prices of grain discussed

Fed grand jury on Sept 15 hands down 8-count indictment against former White House aides G G Liddy and E H Hunt Jr, as well as 5 men arrested in June 17 break-in at Dem Natl Com hq in Watergate complex, Washington, DC: 5 caught in raid are J W McCord, B L Barker, F Sturgis, E R Martinez and V R Gonzales; indictment includes charges of tapping phones, planting electronic surveillance devices and stealing and photographing documents belonging to Dem Natl Com; Justice Dept information dir J W Hushen says indictments have ended investigation into Watergate case; Atty Gen Kleindienst says investigation by FBI and US Atty's Office was 'one of most intensive, objective and thorough' in many yrs, statement; L F O'Brien, Natl Dem Com chmn at time of break-in and now McGovern campaign mgr, says he assumes investigation will continue 'since indictments handed down today reflect only most narrow construction of crime that was committed'; says Dems will continue to press for more thorough explanation of 'funding of crime that led to indictments'; again urges Nixon to appt special prosecutor; Hushen, in press conf, says there was 'no evidence to charge anybody' concerning funding; says only open aspect of case is Gen Acctg Office rev, part of which said that finance com of Com for Re-Election of Pres violated rules governing campaign contributions totaling $350,000, of which $114,000 passed through com and eventually into B L Barker's bank account; only reference to money in indictment is that 'about June 11-15 '72' Liddy, Hunt and McCord met in Washington and Liddy gave McCord about $1,600 in cash; chronological rev of events listed in indictment beginning with conspiracy being hatched by Liddy, Hunt, McCord and Barker on May 1 and ending night of June 17; indictment says that on May 27, Liddy, Hunt and McCord also inspected hq of Sen McGovern, who was then seeking Dem Pres nomination; says that from about May 25 to June 16, Liddy, Hunt and McCord intercepted wire communications from phones in Dem offices, primarily from phone of R S Oliver, exec dir of Assn of Dem State Chmn; Oliver says that his job was to coordinate efforts of Dem state chmn in campaign and that he often recd candid phone calls from them, int; McGovern and Shriver urge continued investigation of case; Nixon campaign chmn C MacGregor urges end to partisan comment on case so as not to interfere with 'full and fair trial-fair from point of view of either defendants or Govt'; Barker illus leaving Miami jail Sept 15; Hunt, Liddy pors

3 gunmen, advocating Croation independence, hijack SAS jetliner on Sept 15 during flight from Goteborg to Stockholm, Sweden, and force craft to land at Malmo, Sweden, where they demand release of 7 Croats held in Swedish prisons; 2 of prisoners are accused of murdering Yugoslav Amb to Sweden V Rolovic in '71; hijackers also obtain about $200,000 and order that plane be refueled before releasing passengers; do not say where they plan to fly with prisoners; Swedish Premier Olof agrees to all of hijackers demands but one of 7 prisoners refuses to join hijackers; illus of 2 prisoners being taken by auto to airport

IMF and other informed sources say US has, in effect, vetoed reapptmt of IMF Dir P-P Schweitzer and that Schweitzer, whose term does not expire until Sept '73, is likely to resign as soon as successor is agreed upon; US official position reptdly is that no decision on reapptmt need be made now but that if other countries press for decision, US could not support Schweitzer; US sources say Nixon Adm view is that beginning of major reform of world monetary system is good time for change in leadership; Schweitzer has emphasized that he will not continue as dir unless major members are in agreement

Sept 16: S Vietnamese marines, Sept 15, reptdly recapture Quangtri Citadel; action held most significant victory for Saigon Govt since start of Hanoi offensive on Mar 30; surviving enemy soldiers reptdly flee toward Han River; marines reptdly have 100% of Citadel grounds and almost 90% of the town; US official, mindful of earlier unsubstantiated claims by Saigon Govt that Citadel had been retaken, suggests there may be a few N Vietnamese holding out in pockets of the fortress but says he believes that enemy resistance was 'pretty much over'; Quangtri fighting since N Vietnamese captured it on May 1 revd; enemy attack near Chonthanh reptd repulsed; US planes fly more than 290 strikes against N Vietnam Sept 14; US plane reptdly shot down enemy plane, Sept 11, 3 mi N of Hanoi; crew of US plane forced to bail out when their plane is later hit by a missile; rescued uninjured; enemy plane is 168th shot down by US crews since June '65, and first downed by an all-marine team; map

censored transcript of testimony this wk to Sen Armed Services Com reveals Gen Lavelle told com that 1 mo after staging his first unauthorized bombing raids on N Vietnam, he was criticized by higher-ranking officers--not for a violation of rules, but because his planes missed their targets; transcript also shows that Lavelle claimed he received authority from Gen Abrams and Adm Moorer for at least a few of the raids; more than 20 raids were carried out before Pres Nixon ordered systematic bombing of N Vietnam; transcript shows that Abrams repeatedly and firmly denied any knowledge of unauthorized raids; Moorer has also denied knowledge of unauthorized raids, though he has confirmed, through a spokesman, that he met with Lavelle in Saigon a day before one of the raids; details on questioning by Sens Hughes and Stennis; Lavelle case revd

Sept 16-17: Israeli mil spokesman says armored task force on Sept 16 crossed into Lebanon and began search-and-destroy operations against Arab guerrilla bases in Ainata area; move comes 1 wk after Israeli planes bombed Syrian and Lebanese territory following attack by Arab guerrillas on Israeli Olympic athletes in Munich, W Ger, on Sept 5; spokesman says Israeli incursion in southern Lebanon follows clash between Israeli Army patrol and group of guerrilla infiltrators from Lebanon on Sept 14 in which 2 Israeli soldiers were killed and 1 injured; Lebanese Army command repts on Sept 16 that Lebanese troops have halted what appeared to be large-scale drive into Lebanon by Israeli forces, with loss of armored vehicle and 2 soldiers

Dem Pres candidate Sen McGovern, in responding to Repub charges that he holds 'radical views' on econ and foreign policy, says 'real radicals' are Pres Nixon and his advisers who have made 'sharp break with essential principles on which this country was founded,' Sept 15 speech to labor leaders, Portland, Me; cites examples of what he holds is radical behavior by Adm

15,000 elderly Japanese gather in Budokan, or Hall of Martial Arts, on Sept 15 to demand larger retirement allowances, increased medical care at lower cost, decent housing, care for the infirm and generally better living standards; Premier K Tanaka has promised help but so far none has been given; recent survey by govt shows that 32% of elderly live on a subsistence level, with monthly income of about $65 to $97.50; sum of $325 is considered necessary for secure life; illus

Fed Reserve Bd Chmn Burns says Reserve can avoid 'credit crunch' in forthcoming mos, especially if Govt would enact $250-billion ceiling on Govt spending, Sept 15 testimony before subcom of Cong Joint Econ Com; rejects recent Internatl Monetary Fund recommendation that Govt seek higher short-term interest rates; concedes recent growth rate of money supply and other monetary aggregates are on 'high side' but says this should be taken as indication of Reserve's intentions; feels Reserve can slow rapid growth in money supply without creating credit squeeze even in face of heavy prospective Treas borrowing, responding to subcom chmn Repr Reuss questioning; makes other comments on internatl monetary affairs; illus

US NASA releases 11-page 'Summary of Apollo 15 Commercialization Incidents' on Sept 15, totaling value of commercial exploitation of Apollo program in sale of stamp covers, watches, medals and figurines at $1,006,829; rept concludes that 15 unidentified astronauts, 9 of whom are still at NASA, were paid total of $37,800 (about $2,500 each) for signing more than 30,000 stamp covers and postcards sold in US and abroad; 5 astronauts contributed their shares to charity; Justice Dept is reviewing exploitation to determine whether Fed violations exist that would warrant Govt action, and has asked NASA to issue no further statements on matter until rev is completed; NASA Asst Admr Donnelly explains how stamps covers were signed; marketing of stamps through H W Eiermann and H E Sieger revd, with their gains estimated at $272,-250; Admr Fletcher announces that it will now be NASA policy to 'drastically limit and restrict' items carried by astronauts on future flights

EPA regional dir G M Hansler and NJ Environmental Conservation Comr R J Sullivan on Sept 15 announce joint Fed-state action against 14 Cape May and Monmouth County communities which have failed to provide secondary sewage treatment and whose discharge is polluting NJ coastal waters, news conf; Sullivan says NJ Atty Gen has filed complaints against communities in NJ Sup Ct; says ct has been asked to impose bldg ban in Cape May; hearings set; Hansler says Fed Govt has served towns with 180-day compliance notices; repts towns will face Fed prosecution if they fail to comply; towns listed; map