October 27, 1973

US Commerce Dept repts on Oct 26 that US ran trade surplus of $873.3-million in Sept, largest surplus for single mo since Mar '65; notes Sept surplus puts US in surplus position for first 9 mos of '73, with exports exceeding imports by $153.1-million; Asst Sec S L Jones says he thinks Sept figures assure that US will, at worst, show balance for all of '73, and that small surplus for yr is possible; officials are reptdly surprised because of size of Sept surplus; express confidence that surpluses will continue, even though they do not expect surpluses of future mos to be so large; exports for mo rose 7.4% to record $6.45-billion, while imports declined by 7.4% to $5.58-billion; Commerce Dept issues separate statement detailing categories of goods involved in US foreign trade; says $500-million increase in imports in 3d qr following gain of $700-million in 2d qr was largely confined to indus material; notes trade results of 3d qr were influenced by 'unusually volatile' trade performance in Sept

Pres Nixon says at Oct 26 nationally televised news conf that new special Watergate prosecutor will be named next wk by Acting Atty Gen R H Bork; pledges 'total cooperation from exec branch'; says matter of turning over evidence from White House to special prosecutor is 1 that can be worked out in cooperation 'and not by having a suit filed by a special prosecutor within exec branch against Pres of US'; says he will not provide Pres documents to special prosecutor; says former Atty Gen Richardson and former Deputy Atty Ruckelshaus felt that because of nature of their confirmation that their commitment to former special prosecutor A Cox had to take precedence over any commitment they may have had to carry out order from Pres; speculation is that former Solicitor Gen J L Rankin, Richardson or Asst Atty Gen H Petersen might be named as replacement for Cox; ABC repts on Oct 26 that Cox told 1 of its reporters that he would consider taking job back again if it were offered but that he does not think it will be; says Cox stated he felt old ground rules for job should be kept and put into law by Cong; Bork says he has urged Pres to name new special prosecutor with 'mandate no less free than A Cox had,' int; says he has submitted list of 5 or 6 individuals to White House as possible replacements for Cox; Nixon says Richardson had agreed to decision on tapes that cost Cox his job; Richardson, however, on Oct 23 said he did not agree with decisions which brought about necessity for issuance of that order; says on Oct 26 that Pres correctly characterized his position with respect to compromise on tapes but that there is difference with regard to right of prosecutor to have access to other tapes, notes and memos; Bork says that if special prosecutor were set up and his independence were interfered with, he would feel that his position in Justice Dept was untenable; sources close to Bork say he will resign if special prosecutor is denied access to tapes and other documents believed vital to case; more than 1/2 of Sen, 46 Dems and 7 Repubs, sponsor bill on Oct 26 to create independent special prosecutor answerable only to cts; bill, drafted by Sens Bayh and Hart, would strip from Pres right to dismiss special prosecutor and would provide for apptmt of special prosecutor by Judge Sirica; Sen Kennedy castigates White House for dismissal of Cox and for Watergate scandals; Judge Sirica on Oct 26, by signing protective order, takes control of evidence gathered since May by special prosecutor force; Sens Tunney, Packwood and R Byrd comment; Nixon por

Oct 27: Pres Nixon says on Oct 26 that US and USSR have agreed 'to use our influence more than we have in the past' to put pressure on Israel and Arabs to reach permanent settlement in Middle East, news conf; says that as result of USSR-US interest in solution, 'outlook for a permanent peace is the best that it has been in 20 yrs'; says events leading up to his decision on Oct 24 to put US forces on alert produced 'the most difficult crisis' since Oct '62 Cuban missile crisis; notes US is prepared to join with USSR in sending small numbers of unarmed peace observers to Middle East under auspices of UN; says US expects to be asked by UN Sec Gen Waldheim to send some observers, and US will comply; holds that US opposes introducing Soviet or US armed forces into area; stresses that because of his close relationship with Soviet party leader Brezhnev, their 2 countries were able to agree on formula to ease tensions; says that on Oct 24, when US believed that USSR was planning to send 'a very substantial force' to Middle East, he had tough exch of messages with Brezhnev; holds that crisis has abated; credits his close contacts with Brezhnev as major factor in getting USSR to vote for Oct 25 UN Security Council resolution barring big powers from participating in Middle East peace-keeping force; says that as result of US Sec of State Kissinger's recent trip to Moscow, 2 states have agreed 'to use our influence in the area to expedite a settlement'; Brezhnev says in Moscow speech that Soviet 'reprs' were sent to Middle East at request of Egyptian Pres A Sadat; State Dept spokesman R J McCloskey says US does not know how many Soviet observers were sent to Egypt; says US is prepared to send similar reprs; stresses that these observers are distinct from peace-keeping forces; US Sec of Defense J R Schlesinger says he has begun phasing US forces out of alert status

US diplomats on Oct 26 note Eur officials are attempting to dissociate themselves from US pro-Israel policies because of dependence on Arab oil exports

A United States District Court ordered the Administration to release $140‐million in impounded medical research and training funds. Details on Page 6.