May 16, 1974

Alexander M Haig Jr reptdly tells Sen Watergate com in May 14 closed-door session that 1 yr ago he was warned by then-Deputy Sec of Treas William E Simon that IRS investigation of Howard Hughes' $100,000 cash contribution to Pres Nixon's re-election had led to Pres Nixon's close friend Charles G Rebozo and could eventually embarrass Nixon; Haig testifies after Nixon agrees to waive claim of exec privilege invoked in early May; Haig tells com he advised Simon to repeat information about Rebozo to White House counsel Leonard Garment; says he and Garment then met with J Fred Buzhardt and J Chapman Rose, tax lawyer who has advised Nixon on his income taxes, that they decided to inform Nixon of IRS discovery, and suggest that Nixon advise Rebozo to consult about matter with Kenneth W Gemmill, another tax lawyer; says Nixon directed him to do this; says he was told by Gemmill in summer of '73, following return of money to Hughes orgn, that Rebozo had been absolved of wrongdoing by IRS inquiry but that IRS could not publicize its findings because then-Watergate prosecutor Archibald Cox was also looking into matter (M)

Walter Scheel on May 15 is elected Pres of West Germany

roll-call of 47-46 vote in which Sen defeated Gurney amendment to restrict pupil busing (S)

Israeli Premier Meir on May 15 promises numbed nation that Israel will do everything to protect its people against terrorist attacks, TV speech; discusses events that resulted in death of 3 Arab terrorists and 16 teen-aged Israelis in town of Maalot; affirms that Israel decided during day to reverse its long-standing policy of not negotiating with terrorists; says Govt was prepared to release 23 prisoners in return for safety of approximately 90 teen-aged hostages held by guerrillas; says deal fell apart, partly out of confusion, when 3 terrorists insisted on code word to begin negotiations; notes code word never arrived from abroad for use by French or Rumanian Ambs, who were prepared to begin negotiations; says climactic events occurred 1/2 hr before terrorists' deadline for killing all hostage; Meir, Information Min Shimon Peres and Israeli officials recount events leading up to attack; C/S Lt Gen Mordechai Gur asked Cabinet's permission to allow French Amb Francois Hure to mediate release, apparently at request of terrorists; Cabinet agreed; later terrorists told Defense Min Dayan and Gur at Maalot that they did not want French to negotiate but later agreed as long as they were in possession of 'code word'; Israeli Foreign Min Abba Eban, in contact with French Foreign Ministry, received message that French Govt was prepared to mediate; later, French forwarded detailed message to Israeli Foreign Ministry from French Embassy in Damascus; message said that repr of Popular Dem Front for the Liberation of Palestine told embassy that 3 terrorists had definite assignments, demanding release of 20 terrorists in exch for hostages; said that if demands were not carried out by deadline, terrorists would blow up school; Israeli Cabinet, after hearing rept from Eban, agreed to various conditions and demands; meanwhile, Rumanian Amb Ion Cavaci reptd that Popular Front repr in Bucharest told Rumanian Govt that Rumanian Amb in Israel was empowered to negotiate release of hostages; Palestinian orgn requested that imprisoned terrorists be flown to either Nicosia, Cyprus, or Damascus, Syria; but in confusion, necessary code words were never passed to Israel, and terrorists refused to deal with French Amb, who was at scene, or with anyone else; 1 hr before deadline, Covaci told Eban that he received message that Popular Front would not extend deadline; because time was short, decision was made to force issue and break into school (L)

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