July 19, 1973

F La Rue and A T Ulasewicz describe on July 18 in testimony before Sen Watergate com how they funneled $450,000 of Pres campaign money to 7 original Watergate defendants and their attys; La Rue, former re-election com official, says he had concluded that break-in at Dem Natl Com hq was sanctioned 'at some high level' and that $230,000 he distributed surreptitiously was to 'satisfy commitments' to conspirators; Ulasewicz says he quit making payments last Sept after becoming concerned that the $220,000 was going for more than mere 'humanitarian' support of criminal defendants; both insist they did not know who was ultimate authority for payments; Ulasewicz says he assumed instructions originated from 'someone like' ex-White House aides Haldeman and Ehrlichman; La Rue disputes ex-Atty Gen Mitchell's testimony when he says he did not hear Mitchell reject out of hand, at Mar 30 '72 meeting, the $250,000 intelligence gathering plan that ultimately led to break-in; does not endorse J S Magruder's acct that Mitchell reluctantly 'signed off-on,' ie, consented to, electronic eavesdropping plan; swears Mitchell, despite his denial, advised Magruder last June to destroy campaign documents relating to eavesdropping scheme; most of July 18 testimony deals with confirmation of previously published repts that nearly $500,000 of funds left over from Nixon's '68 campaign or collected in '72 was distributed to Watergate defendants to maintain their silence; Ulasewicz says most of arrangements were made with Mrs Hunt who dealt with him on behalf of other defendants; La Rue discusses how he gradually assembled $230,000 he disseminated mostly to Hunt's atty W O Bittman; says he was advised that participants in arrangements included 2 re-election com attys P L O'Brien and K Parkinson; Parkinson says he never advised La Rue to make payments to lawyers for Watergate defendants; Sen Weicker elicits from Ulasewicz confirmation of fact that Ulasewicz had explored sex habits, drinking habits, domestic problems and 'personal social activities' of individuals who were regarded as potential pol opponents of Nixon; authoritative sources say that White House will soon face delicate problem concerning tapes of White House conversations as special Watergate prosecutor A Cox is preparing to make his own request for recordings; White House press sec Ziegler insists tapes have never been transcribed; illus of Ulasewicz and La Rue

HR, despite threat of veto, on July 18 passes measure that would limit Pres power to commit US armed forces to hostilities abroad without Cong approval; vote is 244-170, 32 short of 2/3 needed to override veto; during 7 hrs of debate, HR turns back numerous efforts to weaken measure, which was approved last mo by HR Foreign Affairs Com and provides: that within 72 hrs after commitment of US forces to hostilities in foreign nations, Pres would be required to rept to Cong on circumstances that prompted action, his authority and estimated scope of action; that within 120 days after Pres rept, he would have to terminate commitment unless Cong enacted declaration of war or special authorization for use of forces; that within 120-day period Cong could adopt concurrent resolution, not subject to Pres approval or veto, terminating commitment of forces; Repr Ford, as HR begins debate, reads telegram from Pres Nixon, dated June 16, warning that he would veto message because of its 'dangerous and unconst restrictions'; Nixon said that he would welcome 'appropriate legis' giving Cong 'proper role in war powers,' but offered no specific compromise; Ford hails 'flexibility' and 'new policy' at White House, urging HR to accept substitute bill offered by Repr Dennis; HR, 250-166, rejected substitute, which would have required Cong, by bill or resolution, either to approve or disapprove commitment of forces within 90 days of action; measure would also require similar Cong action every 6 mos during continuation of hostilities; Sen also begins debate on war powers measure

Nearly 200 members of NY-NJ Port Auth PBA vote on July 18 to perform only emergency work at NYC met area airports as part of job action

questions and answers about Phase 4 controls and their implications for consumers, workers and businessmen

Pres Nixon, on July 18, ends freeze on prices with certain exceptions, including health care

special session of NYS Legis scheduled to open July 23 is postponed to July 25 after Gov Rockefeller fails to win support of NYS Legis leaders Duryea and Anderson for his plan to put transportation bond issue on agenda; before meeting Rockefeller predicted 'historic' action by legis on solving state's transit crisis; following meeting, series of conflicting points of view were presented by Rockefeller's press sec, R Maiorana, Rockefeller and legis leaders; Anderson denies that transit question advanced at all during meeting while Rockefeller insisted that all had gone well

Grocery Mfrs of Amer pres G W Koch, commenting on Pres Nixon's Phase 4 econ policy, says on July 18 that food prices will rise, possibly higher than they would have without controls; commodities traders in Chicago and NYC express relief over Phase 4 regulations, but foresee that higher food prices might eventually move from current 'price rationing' to real rationing if supplies fail to meet demand

Valery N Kubasov and Col Aleksei A Leonov, Soviet astronauts who will participate in joint US-USSR space mission in '75, illus practicing water rescue with Soyuz spacecraft

analysis of Pres Nixon's and Treas Sec Shultz's statements on Phase 4 points out that tone of statements reflects an unmistakable change on part of Nixon Adm toward humility; notes that Nixon, 35 days after imposing 60-day price freeze, disclosed his mistake by saying that food has given 'clearest evidence of harm that controls can do to supplies'

Former Defense Sec M R Laird and his retired top mil adviser, Gen E G Wheeler, criticize the falsification of official repts dealing with the secret bombing of Cambodia and disavow knowledge of any such actions, phone ints, July 18; Laird rejects US Defense Dept suggestion that he and other high Defense Dept officials had authorized a 'special security reptg procedure,' involving falsification, to prevent disclosure of the bombing; suggestion was made July 17 by Defense Dept spokesman J W Friedheim, who told newsmen that the bombing operations itself 'and the special security reptg procedures were fully authorized and directed by sr mil and civilian officials here in Washington;' White House has confirmed that Pres Nixon personally authorized the bombing raids, with the approval of his key advisers, and urged that they be kept secret; Friedheim repts that 3,630 unannounced raids were carried out with more than 100,000 tons of bombs dropped; Laird says he is baffled by fact that Defense Dept did not include Cambodian statistics in classified documents sent earlier this yr to Sen Armed Services Com at request of Sen H E Hughes; ints in last 2 days with a number of high-ranking past and present mil and govt officials bring forth disavowals of any link to false bomb repts; purport of pub and private comments is to contradict officials justification for the falsifications detailed by Friedheim; Vice Adm N C Johnson (ret), dir of Joint Staff under Wheeler in '69, says he also did not 'know of any authority for falsification,' phone int; Wheeler por

Saigon Govt says, July 18, it has reached agreement in principle with Vietcong to exchange their remaining mil and civilian prisoners next wk; 2 sides are still at odds over where some of the exchanges will be made; Saigon command repts heavy fighting, July 17, in Mekong Delta about 80 mi SW of Saigon

Security Council meets July 18