July 6, 1973

Sen H M Jackson charges on July 5 that former Atty Gen Kleindienst and Pres counsel J W Dean 3d bypassed normal procedures in arranging exec clemency for high-ranking Mafia figure A DeCarlo after he served 19 mos of 12-yr sentence for extortion; Jackson's lr to Atty Gen Richardson requesting Justice Dept's records on DeCarlo's release last Dec comments on irony of Justice Dept's nationwide crackdown on organized crime while at same time justice is frustrated by mobsters eluding full weight of penalties; Richardson states that personal rev of DeCarlo's release shows that normal procedures were not bypassed; Jackson requests interviews with NJ US Atty H J Stern, prosecutor in DeCarlo case and with others associated with matter; Richardson says Kleindienst and pardon atty both said that case was handled in accordance with dept policy toward terminal-illness cases; DeCarlo is described as capt in Mafia family of late V Genovese and one of NJ's most powerful underworld figures

US Govt, in move to protect domestic supplies, announces on July 5 export controls on 41 agr commodities; says action is necesssitated by surge in foreign demand for these products following recent imposition of export controls on soybeans and cottonseed and their by-products; Agr Sec Butz certifies that because of 'transferability of demand,' products on new list will not be adequate to meet domestic requirements until soybeans become available from new harvests

Assemblyman Duryea says on July 5 that issue of new statewide referendum on transportation bond issue, which would include mass transit and hwy construction funds, should be put off until NYS Legis resumes in Jan, otherwise, special July legis session, designed to settle issue of public pensions, might get bogged down in controversy

FHA and VA on July 5 announce interest rate increase from 7% to 7 3/4% on mortgage loans they insure or guarantee; increase is designed chiefly to reduce discount points' that seller must pay to home buyer with FHA or VA mortgage; 'points' are means by which lender gets 8% on FHA or VA mortgage nominally bearing interest rate of 7%; FHA says increased interest rate will be offset by lower selling price so mortgage payments should remain about the same; Natl Assn of Homebuilders criticizes increase

Los Angeles Dist Atty J P Busch says on July 5 that he will seek indictments against former White House aides for conspiracy to break into office of D Ellsberg's former psychiatrist Dr L J Fielding, news conf; declines to identify who grand jury will be asked to indict; sources close to case indicate that main targets of investigation are J D Ehrlichman, E Krogh Jr and D R Young Jr; Krogh says he will not comment on his alleged involvement in break-in because he is now a 'subject of investigation' and has been advised by his atty to make no further comments, news conf, Los Angeles; Busch made his announcement after Krogh appeared before grand jury to testify, pleading 5th Amendment against self-incrimination; main reason for Busch's delaying indictments is to allow Sen Watergate Com to complete current phase of its investigation; Los Angeles prosecutors must still seek ct order transferring to Los Angeles certain documents that are now exhibits before grand jury in Washington investigating Watergate case; documents are said to be memorandums from Young to Ehrlichman and reptdly indicate that Ehrlichman had 'foreknowledge' of break-in; Ehrlichman, according to Krogh's affidavit, reptdly gave plumbers, special White House security team, 'general authorization to engage in covert activity' in their investigation of Ellsberg; Busch says he is not considering calling former Pres counsel J W Dean 3d before grand jury because Dean's testimony would be only hearsay regarding Pres Nixon's role in break-in; says he is reluctant to give immunity to Krogh in exch for his testimony because he is not sure Krogh would corroborate Dean; illus of Krogh at news conf in Los Angeles