June 7, 1973

pol corruption scandal is seen contributing to Gov Cahill's humiliating defeat by Repr Sandman in Repub gubernatorial primary

M R Laird, newly apptd chief domestic adviser to Pres Nixon, says on June 6 that he has full confidence in Pres Nixon's 'noninvolvement' in Watergate scandals, news conf

Sec Shultz, in June 6 speech, Paris, to ABA internatl monetary conf, says US has strong program of econ controls that have been adapted to inflation situation and will continue to be adapted; says Nixon Adm's goal is still to get inflation rate down to 3% by end of yr from 6.6% in 1st qr; Chmn Stein stresses that factors causing surge in 1st-qr prices were 'temporary'; Fed Reserve Bd chmn Burns urges businesses to limit voluntarily their investment plans; says that under no conditions should investment tax credit be suspended altogether, but rather 'vary, perhaps, between 3% or 4%'; fixed rate of credit is now 7%

Former Deputy Atty Gen R E Erickson testifies on June 6 before House Commerce subcom on investigations headed by Repr Staggers about hurried transfer of ITT files from SEC to Justice Dept last Oct; testimony is totally at variance with account given same Cong subcom by former SEC chmn W J Casey; subcom members, because 2 versions are so irreconcilable, indicate in their questioning that they are now confronted with questions of possible perjury and falsification of records; Casey repeatedly told subcom that 34 boxes of ITT files were transferred to Justice Dept on Oct 6, '72, because dept had requested them; Erickson insists that dept had not requested transfer; says he emphasized in conversations with both J W Dean 3d and with Casey that dept saw no need for files in connection with investigation it was then conducting; Casey, reached in Paris, says that Erickson's statement is not true; says that last Oct Erickson, in lr to Staggers, stated that he (Erickson) had asked that ITT files be sent to Justice Dept; Erickson concedes that he had written and signed such lr but should have not said he requested files but that he had accepted them from Casey; Erickson por

former treas of Finance Com to Re-Elect Pres H W Sloan Jr testifies on June 6 before Sen Watergate com that ex-White House counsel J W Dean 3d tried to persuade him to resist testifying at Miami trial related to Watergate affair; says Dean 1st urged him to resist efforts by authorities in Miami to extradite him from his home state of Va to become witness in Nov trial of Watergate conspirator B L Barker at which he was convicted of illicitly using his notary public stamp to facilitate cashing of Repub campaign check; Sloan says that 2 re-election unit aides, J S Magruder and F C LaRue, approached him soon after break-in with suggestions that he minimize financial transactions; says he was 'a little flabbergasted' by suggestion because, among other things, 'Magruder himself had authorized a payment (to G G Liddy) for $83,000' in 1 single installment; testifies that he went to see former Atty Gen Mitchell for guidance on payments to Liddy; Barker's Miami trial involved a $25,000 cashier's check obtained by K H Dahlberg which represented cash contribution that Dahlberg had collected from D O Andreas; it was endorsed by Dahlberg, passed to com and taken by Liddy for conversion into cash; Liddy gave check to Barker, who notarized it and persuaded bank to cash it