March 1, 1973

GAO is probing unreptd $200,000 contribution secretly given to Pres Nixon's re-election campaign by NJ financier R L Vesco, who is under Fed charges of securities fraud; former NJ State Sen H L Sears says he dissuaded Sears from contributing $500,000 to Nixon's re-election campaign but that he agreed to arrange for $250,000 contribution, of which only $50,000 was reptd; GAO repr describes failure to disclose contributions as 'apparent violation' of Fed Election Campaign Act; Justice Dept silent on whether it is probing secret contribution; 'apparent violation' described; SEC reptdly is seeking ct order barring Vesco from transferring his assets out of country; former Atty Gen Mitchell's role in affair outlined; case detailed

Assemblymen Biondo and Griffin on Feb 28 introduce bipartisan bill which would abolish statewide primary for chief judge of NYS Appeals Ct; observers see move as prelude to Dem endorsement of Repub Assoc Judge C D Breitel in his race for post; state Dem Chmn Crangle approves of bill; sources say Dems, in return for cross-endorsement of Breitel, have been promised veto power over next 2 openings on ct; 2 more Dems, State Sup Ct Justice V J Titone and Fed Dist Judge J B Weinstein, join Breitel and State Sup Ct Justice I R Brownstein in race; NYC Dem mayoral aspirant Assemblyman Blumenthal opposes bill as giving voters' power back to pol parties; Weinstein calls reptd arrangement 'sordid pol deal'

Militant Indians on Feb 28 hold at least 10 persons hostage in Wounded Knee, SD; relay demands to Washington that Sen Foreign Relations Com hold hearings on treaties made with Indians, that Sen begin 'full-scale investigation' of Govt treatment of Indians and that another inquiry be started into 'all Sioux reservations in SD'; protesters vow they will stay in Wounded Knee until they get answers from Fed Govt; pledge that hostages will not be harmed; Fed marshals, FBI agents and Indian Affairs Bur policemen surround Oglala Sioux hamlet; 2 armored personnel carriers are brought in; trading post and ch at Pine Ridge Sioux Reservation settlement are occupied by 200 to 300 members of Amer Indian Movement; Fed officers refuse to disclose any plans to rout militants and free the hostages; marshals exchange fire with Indians; no injuries are reptd; at least 17 persons are arrested during attempt to flee through cordon of nearly 100 Fed officers surrounding area; US Atty W Clayton says Indians will be charged with burglary, larceny and attempt to commit burglary; Chief D Wilson, whom Amer Indian Movement members sought unsuccessfully to oust from his post last wk, says militants are armed with hunting rifles and ammunition seized in takeover of trading post, and might have at least 2 machine guns; illus of seige area; illus; map

Assemblyman Jesse Gray of Manhattan formally announced, his candidacy for the Democratic mayoral nomination yesterday, becoming the first black and the seventh announced candidate for the Democratic nomination. Details on Page 28.

Mar 1-15: acting FBI dir Gray says on Feb 28 that he originally resisted making FBI's files on Watergate affair available to White House but that he finally allowed record of investigation to be given to Pres asst, testimony before Sen Judiciary Com, which is hold hearing on his apptmt as FBI dir; says that any Sen who wants to see Watergate files personally can do so but files will not be available to staff members, except those working for members of special Sen com; says that on June 19, 2 days after Watergate break-in, he received summary rept of investigation thus far that had 'come up through FBI channels'; copies of rept were addressed to Pres Nixon's chief of staff Haldeman and to Atty Gen Kleindienst; says that at time he did not think record of investigation should get out of FBI but that mo later, when Pres Nixon's counsel Dean requested material he gave rept on investigation to Kleindienst; assumes it then went to White House; says that following another request from Dean he then sent records of ints that agents had conducted during investigation to White House; says FBI agents on June 26 interviewed Calif lawyer D H Segretti, who is alleged to have conducted pol espionage and sabotage on behalf of Nixon campaign, but that FBI concluded that he had been involved in no illegal activities in connection with Watergate; says only information FBI had about spying and sabotage activities of Segretti came from news accounts subsequent to int; 1 news account says that Adm aides were believed to have shown Segretti copies of his FBI int and to have coached him on what to say to grand jury when he testified; Gray says he was angry, apparently believing that Dean might have been person to show material to Segretti; says he called Dean who told him that he did not have FBI repts in Fla and he took Dean's word for it