May 23, 1973

rept prepared for MTA and NYC Transportation Adm recommends elevated loop around Lower Manhattan and conversion of 48th and 49th Sts for use by buses and pedestrians only; proposes 2 demonstration projects to assess workability of advanced technologies: set of 2 types of moving sidewalks, traveling below ground at 2 to 3 times avg walking speed, and construction of 'continuous capacity vehicle system' along converted track area from Grand Central Terminal; rept, prepared by Kaiser Engineers Corp, suggests such a system might eventually be installed to replace bus systems on 48th and 49th Sts; elevated loop system would circle area bounded by Chambers St and Bklyn Bridge and would have rubber tires to minimize noise and vibration; would be 3.07‐mi double‐track loop with 10 stations, making complete run in 11 mins; City Planning Comm chmn Zuccotti says steps have already been taken to obtain Fed grant from Urban Mass Transportation Adm to take planning of downtown people‐mover 'to the next stage'; estimates of cost of aerial loop are put at between $81‐and $93‐million; cost of complete downtown system is between $185‐and $255‐million, depending on various specifics; estimates of cost of conversion of 48th and 49th Sts, involving large‐scale widening of sidewalks and construction of bus‐boarding stations, are put at $43‐million

Sen Judiciary Com on May 22, in unexpected move, apparently in response to actions by Dr D Ellsberg, reopens its hearings on confirmation of E L Richardson as Atty Gen and questions him closely about his contacts with White House and figures close to Watergate scandal; Richardson illus

former White House official J Caulfield tells Sen Watergate com May 22 that deposed White House counsel J W Dean 3d ordered him to offer exec clemency to J W McCord Jr; testifies that he had 'no knowledge' that Pres Nixon had approved offer, regarded by McCord as effort to keep him from talking about Watergate scandal; Caulfied says Dean cited authority for offer 'from way up at the top' and that he had thought such a phrase would cover 'at least' J D Ehrlichman; Pres Nixon, in statement issued at White House, denies authorizing exec clemency for any of Watergate defendants and says that he was unaware of 'any such offer'; McCord has testified that Caulfied had said at their initial meeting that Pres was aware of their session, that he would be informed of results and that message from Nixon might come later; Caulfield says May 22 that 'at no time in our 1st meeting do I recall saying anything about the Pres'; does not foreclose possibility that Nixon knew of other 2 sessions; testifies that in Mar '69 Ehrlichman sought unsuccessfully to persuade him 'to set up a private security entity...for purposes of providing investigative support for White House'; says NYC detective A T Ulasewicz was paid through Pres Nixon's personal atty H W Kalmbach to perform 'a variety of investigative functions for the White House'; says that when he told Dean that McCord was being stubborn about accepting clemency offer, Dean said 'Well, what the hell does he know, anyway?'; Caulfied says Dean 1st approached him in Jan '73 about making clemency offer to McCord; says Dean asked him to go to public telephone for discussion of clemency offer; says when he got to pay phone and called Dean, Pres' lawyer reptdly said that 3‐part message should be given to McCord and that although it seemed cryptic, the conspirator should understand it; message reptdly began 'a yr is a long time' and continued 'your wife and family will be taken care of; you will be rehabilitated with employment when this is all over'; says he immediately perceived that he had been 'asked to do a very dangerous thing' and suggested to Dean that task be carried out by Ulasewicz in effort to mask its source; Caulfield confirms McCord's attempt to abort prosecution by establishing that he had been wiretapped by Govt and that case against him had thus been 'tainted'; McCord is allged to have accomplished this by placing calls to 2 foreign embassies in Washington that he thought were wiretapped; it is suggested for 1st time that G Alch, 1 of McCord's attys, was in touch with White House about case; illus of Caulfield

Brit Prime Min Heath and French Pres Pompidou reptdly discussed cooperation between both nations in aerospace tech at 2‐day meeting in Paris

US Sen, 62‐22, on May 22 overrides Pres Nixon's veto of a bill requiring Sen confirmation of Mgt and Budget Dir and Deputy Dir; HR is scheduled to vote on May 23 on whether to override measure; HR Speaker C Albert has acknowledged that bill would be 'very difficult' to override; HR passed bill May 1

Pres Nixon concedes in May 22 statement that there were 'wide‐ranging efforts' in White House to conceal some aspects of Watergate case, but says those actions stemmed from his legitimate interest in protecting natl security; declares in supplementary statement that he has no intention of resigning; reiterates his own innocence in burglary of Dem Natl Com and its cover‐up but says that he asked his associates not to let investigation of case disclose covert intelligence operations conducted in interest of natl security; suggests that his closest associates H R Haldeman and J D Ehrlichman, who resigned Apr 30, may well have carried his instructions on protecting natl security to illegal attempts to cover up episode; says right to claim exec privilege will not be claimed in regard to 'any testimony concerning possible criminal conduct or discussions of possible criminal conduct'; Nixon says 'it is clear that unethical, as well as illegal, activities took place in the course of that campaign. None of these took place with my specific approval or knowledge. To the extent that I may in any way have contributed to the climate in which they took place, I did not intend to; to the extent that I failed to prevent them, I should have been more vigilant'; White House press sec Ziegler says Nixon will appear before press in 'very near future' to answer further to Watergate charges; White House counsel L Garment says 1 reason for releasing detailed statement is to meet 'the legitimate concerns' of pol leaders of both parties that Pres should be less seclusive and secretive

It is clear that unethical, as well as illegal, activities took place in the course of that campaign. None of these took place with my specific approval or knowledge. To the extent that I may in any way have contributed the climate in which they took place, I did not intend to; to the extent that I failed to prevent them, I should have been more vigilant.

Justice Dept sources say that 3 Fed prosecutors in Watergate case Asst US Attys E J Silbert, S Glanzer and D E Campbell were on verge of resigning from case on May 22 but delayed their decision until May 23 meeting, their 1st, with special Watergate prosecutor A Cox; sources say Attys believe they have, in effect, solved complex case and resent fact that neither Atty Gen‐designate Richardson nor Cox has had any dealings with them since scandal erupted in Apr; attys had called news conf but their immediate superior US Atty H H Titus Jr showed up instead and announced that Cox had telephoned to invite prosecuting team to meet with him May 23; in anticipation of their resignation, prosecutors dismissed 23 grand jurors and canceled all witness ints; sources say that prosecutors have told high Justice Dept officials that they expect to complete their investigation within 2 mos and now believe that they can indict most of major targets or their inquiry solely on testimony of White House and campaign com officials who were not directly implicated in crimes; source close to Cox says that Cox fully intended to give the 3 prosecutors chance to outline their theory of case and to rept on their progress during May 23 meeting; Cox has chosen Harvard Law School colleague, Prof P B Heymann, to serve as informal deputy, at least during early stages of inquiry

Labor Dept repts on May 22 that increase in food prices was principal reason for 0.7% rise in consumer price index, Apr; food price rise in Apr was less than during any prior mo in '73; index for food prices rose 1.5%, or 1.4% seasonally adjusted; increase in food prices since Apr '72 was 11.5%, while prices of food purchased in food shops rose 13.3%; Council of Econ Advisers Chmn Stein says rise in food was lowest monthly increase in '73, indicating 1st step in transition toward much 'smaller food price' increases later in '73; AFL‐CIO pres Meany scoffs at Stein's remarks

Fed grand jury indictment of N G Gross, NJ Repub party leader, on May 22 on charges of masterminding income tax conspiracy fraud involving financing of Gov Cahill's '69 election campaign means that 3 most influential members of Cahill's original pol inner circle have either been convicted or indicted on criminal charges involving various forms of pol corruption; former State Sec Sherwin was convicted on charges that he attempted to fix state hwy contract in exch for $10,000 kickback to Repub fund raisers closely identified with Cahill; former State Treas McCrane was indicted last mo on charges of bribery and misconduct in office; cumulative impact of spreading charges of corruption against Cahill's associates is seen highly damaging to Cahill's campaign to win renomination in Repub gubernatorial primary

RM Nixon Foundation, with a majority of its exec bd of trustees directly implicated in Watergate investigation, has put aside for time being its plans to build a library and museum as a monument to Pres; foundation pres L K Firestone says library may be deferred until Nixon is out of office; says it is possible that Watergate affair could hurt ability of corp to raise the $8‐million to $10‐million needed to build library and museum; 4 members of foundation's 7‐member exec bd who are involved in Watergate disclosures are H R Haldeman, J D Ehrlichman, J N Mitchell and H W Kalmbach; 3 other exec trustees in foundation are R H Finch, P R Hitt and L Garment; Firestone takes position that involvement of 4 exec trustees in Watergate is not critical to foundation's operations 'at this time' because he and 3 other permanent officers carry on orgn's day‐to‐day business

S African Govt, in unexpected and dramatic move seen as significant ideological concession by Nationalist party Govt of Prime Min Vorster, on May 22 introduces legis that will give many of country's black workers legal right to strike