August 16, 1973

NY Times learns from sources close to probe that Atty Gen Richardson met with Agnew early this mo and outlined substance of evidence gathered by Fed prosecutors in Baltimore against Agnew; says key elements of case presented to Agnew included item that more than 20 Md businessmen told prosecutors that they gave cash payments to Agnew associates in return for state and Govt contracts and they believed that some of money was being funneled to Agnew; notes sources reptd that at least 3 of Agnew associates named by businessmen, L Matz, J B Wolff and A I Green, told prosecutors that they turned over some of payments to Agnew and that Matz told prosecutors he made 1 payment to Agnew of $2,500 in summer of '71 in return for his help in getting someone a job in GSA; sources say Matz asserted that he turned over money to Agnew in presence of J W Jones, who has publicly denied participating in kickbacks or witnessing any being made; say that some time before they began to talk to prosecutors, Matz and Wolff went to G White, Agnew's long‐time personal atty, and told him that if Fed investigation in Baltimore was not stopped it would implicate Agnew because they would tell what they knew; White denies on Aug 15 that Matz and Wolff approached him about investigation, telephone int; Justice Dept repr confirms on Aug 15 that Richardson met with Agnew about case; says meeting was held Aug 6 to supplement information contained in lr recd previous wk by Agnew from US Atty Beall informing Agnew that he was under investigation; sources say cumulative evidence collected thus far is enough for prosecutors to seek indictment against Agnew and that they intend to do so; 3 former Agnew associates have reptdly emphasized that they made cash payments to Agnew when he was Vice Pres as well as when he was Md Gov; sources say Green has told prosecutors that he gave kickbacks to Agnew about 5 times a yr until '69 and slightly less frequently after Agnew became Vice Pres; Green is pres of Green Associates Inc, engineering co based in Towson, Md; 1 of co's 7 vps is R Beall, brother of US Atty G Beall; Matz is partner in Matz Childs and Associates and Wolff is pres of Greiner Environmental Systems Inc, subsidiary of J E Greiner Co; Matz and Wolff cos both won numerous contracts with state while Agnew was Gov

The American Metal Climax, Inc., and Mitsui & Co., Ltd., the Japanese trading company, announced yesterday an agreement in principle for Mitsui to acquire 50 per cent: interest in Amax's aluminum business for $125million. It would he the first major. purchase by Japanese interests of a stake in a large American company. Page 51.

J Reston analysis of Pres Nixon's Aug 15 speech; says Nixon's speech was not appeal of a Pres who feels trapped or defeated although he offered no new facts and answered none of major ambiguities or contradictions of Sen Watergate hearings; says Nixon's performance was quite different from his handling of previous personal crises; says this time, while repeating that he took responsibility for whatever was done in his name, Nixon blamed atmosphere of '60s, antiwar demonstrators and their supporters in press, radio and TV for establishing notion that their higher ends justified illegal means; says another theme in speech was that Sen com and press, radio and TV have been constantly reptg Watergate affair, not because it is their duty to rept facts, but because they are trying to exploit crisis or even glorying in tragedy; says Nixon holds press is not so interested in getting facts as in getting the Pres; says suggestion that Watergate is secondary and being used for unworthy reasons to keep Pres from getting on with his larger primary and nobler objectives is likely to be bitterly resented by exec and legis investigators who are only at beginning of their inquiries; says odd thing about Nixon's speech is that in beginning he raised main questions, which he promised to answer, and then he did not answer them; compares Watergate speech with Nixon's '52 'Checkers' speech

Commerce Dept repts on Aug 15 that US balance of trade improved by about $700‐million to small deficit of about $300‐million in 2d qr of '73

Fed Govt, on Aug 15, moves to impose tighter controls over widely prescribed tranquilizers Valium and Librium, which have been taken by over 20 million Amors; final action, which may come next mo, will end 7‐yr Fed effort to curb use of these drugs because of their potential for abuse; in current action, Justice Dept Drug Enforcement Adm notified HEW Dept that it wants to put 2 drugs within guidelines of Controlled Substances Act; move would limit to 5 number of times prescription could be refilled and to 6 mos the length of time that prescription would be valid; retail sales of 2 drugs reptdly are about $500‐million annually; Drug Enforcement Adm acting dir J R Bartels notes that some people have been taking up to 10 times prescribed daily dosage of drugs; Bartels illus; US Appeals Ct, 3d Dist, in March held that there was evidence that pharmacists were distributing amts of Librium without authorization from drs; effects of sudden withdrawals from drugs noted; FDA's attempts to put restrictions on drugs recalled; other drugs on list of Controlled Substances Act noted; Roche Labs, div of Hoffmann‐La Roche Inc, which makes both drugs, says it will not contest proposed action