May 15, 1973

Judge Sirica takes possession on May 14 of papers purportedly relating to Watergate case despite White House request that they be returned; papers were taken from White House by ex‐White House counsel J W Dean 3d and placed in safe deposit box in suburban bank; Sirica orders that copies be made available to Sen Watergate com and Fed ct prosecutors; White House press sec Ziegler, when asked about repts in Time and Newsweek magazines that Dean recently said that he had produced no rept for Pres on Watergate and was 'flabbergasted' at Nixon's Aug 29 comments that Dean's investigation 'indicates that no one in the White House staff was involved in Watergate break‐in, says he cannot reply because any answer might prejudice civil liberties of persons involved in investigation; Ziegler says he will stand on Nixon's Apr 30 speech, in which Nixon made no mention of internal investigation or of Dean; Ziegler expresses White House's 'concern' about possibility that Sen com hearings might interfere with work of Watergate grand jury; H R Haldeman and J D Ehrlichman appear before grand jury; Ziegler says they are still at White House, 2 wks after their resignations, 'helping with the transition'; Dean and atty McCandless illus

New investigation has been started by Bronx Dist Atty Merola's office into event that won Repr Biaggi recognition as police hero—'59 shooting case in which he killed apparent holdup man in rear seat of parked car; Biaggi asserts latest investigation of his affairs is pol move on part of Merola, who is identified with Bronx Dem orgn, which is supporting Controller Beame for mayoral designation

NYS Sen, 53‐12, passes bill on May 14 providing for controlled development on 3.7‐million acres of privately owned land in Adirondack State Park; Assembly passed bill, 117‐12, earlier in the day; legislators from Adirondack area argue that plan violates home rule and imposes econ hardships on an already economically depressed area; bill contains 200 changes of land‐use plan submitted by Adirondack Park Agency in Mar '73; supporters of bill claim that measure is needed to save area from unchecked despoliation by builders eager to make profit; some changes in bill noted

The stock market dropped sharply yesterday in moderate trading. The Dow‐Jones industrial average had its biggest daily decline in almost three years, slumping 18.29 points to 909.69. It was the average's lowest closing level since Feb. 8, 1972, when it finished at 907.13. Details, Page 49.

internatl value of dollar crumbles on NY foreign‐exch mkt May 14 in what sr banking officials describe as new run on dollar; Morgan Guaranty Trust Co repts trade‐weighted devaluation of dollar from levels set in Dec '71 totaled 6.60% at noon on May 14, down sharply from 5.98% on May 11; bankers voice serious concern about renewed outbreak of speculation in internatl money mkts, which they tend to attribute to loss of confidence in Amer pol leadership, partly as result of Watergate scandal; economist S I Nakagama says he believes 2d dollar devaluation in Feb was 'mistake' because devaluation helped to create new demand for US exports at time when econ is running 'flat out' and has very little unused capacity available for expanded production; says devaluation adds to inflation