May 2, 1973

White House announces on May 1 that Nixon will issue statement on econ May 2 following meeting with his 5 sr econ advisers and another meeting with Labor-Mgt Advisory Committee; statement expected to include selective tightening of wage-price stabilization program; speculation on specifics

Former Tex Gov and Treas Sec J B Connally to announce at a news conf, May 2, Houston, his long-expected switch from the Dem to the Repub party; Connally associates say, in phone ints, that Connally intended to combine the declaration of party change with a defense of Pres Nixon's handling of the Watergate case; a friend says he doubts that Connally will be willing to accept a staff position in the White House; Connally's conservative views, a result in part of his Tex oil indus links, have propelled him steadily toward the Repub party; his switch is likely to produce a major partisan realignment in Tex; Austin, Tex, sources say that others are likely to follow Connally lead; E Clark cited as among those; comment on impact of Connally shift on natl scene

Pres Nixon, May 1, asks Cong to authorize $2.9-billion in foreign aid in fiscal yr beginning July 1, including $632-million for rebldg all countries of Indochina except N Vietnam; says he will not seek any money for N Vietnam until it 'adheres fully' to the Vietnam cease-fire agreement; asks for a one-yr authorization for programs to Indochina

Govt investigators say on May 1 that they now have evidence that high-ranking officials of White House and Com for Re-Election of Pres conspired after June '72 Watergate break-in to arrange careful cover story designed to obstruct Fed investigation; say evidence shows that obstruction of justice was coordinated by Nixon's 2 closest advisers--H R Haldeman and J D Ehrlichman, who resigned Apr 30--and ex-Atty Gen Mitchell, who headed re-election com at time; say J S Magruder, F C LaRue and J W Dean 3d were also involved in initial cover-up attempt; say cover-up was formulated during some secret meetings held at re-election hq in late June; say basic scheme called for all those involved in operation to deny any knowledge of it and for re-election com to issue public statements to that effect; say everyone involved in operation repeatedly lied to Fed investigators, prosecutors, other White House officials and to Pres Nixon; sources say all 6 men are expected to be indicted by Fed grand jury; say D L Chapin, G Strachan, H L Porter and K W Parkinson were also involved in cover-up and are now under investigation by grand jury; scheme, as allegedly worked out by Ehrlichman, Haldeman, Mitchell and Dean, included payments to arrested defendants, promises of exec clemency, series of public denials and arrangements with Magruder and Porter to perjure themselves druing trial of 7 Watergate defendants; sources say additional funds needed for payoffs were collected by H W Kalmbach, Nixon's personal lawyer, who also served as chief campaign money raiser; source says it has not been determined whether Kalmbach was aware of money's ultimate use; says perhaps grossest fabrication was coordinated account provided to Fed prosecutors and used by them as bulwark in subsequent Watergate trial, of initial rationale behind cash payments to G G Liddy; Govt was told by number of re-election com officials that $100,000 given to Liddy was to pay 10 intelligence agents $1,000-a-mo each for 10 mos in '72 to find out if anti-Repub demonstrations were planned; H W Sloan Jr, treas of re-election com, who gave cash to Liddy, was, according to investigators, only key official who apparently chose not to participate in cover-up, causing his superiors to alter some details of agreed-upon story; sources say Sloan had been urged to commit perjury during Watergate trial by testifying that he gave Liddy and his associates only $40,000 in $100 bills rather than $235,000 that was actually provided; investigators say that cover-up publicly began within 2 days of arrests inside Dem hq after newspapers identified J W McCord Jr as 'security coordinator' for re-election com

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