July 11, 1974

Sen Watergate com staff makes public draft rept with additional information supporting charge that Charles G Rebozo gave or lent part of Howard Hughes' $100,000 contribution to Pres Nixon to Nixon's 2 bros and his personal sec Rose Mary Woods; rept strongly suggests that part of Hughes' contribution may have been included in over $50,000 that Rebozo spent between '68 and '72 for Pres' personal benefit, including purchase of $4,562.33 earrings as birthday gift from Pres to Mrs Nixon; key elements in 350-page rept are: that Herbert W Kalmbach's atty James O'Connor submitted sworn affidavit attesting to fact that Kalmbach told him in spring of '73 of conversation in which Rebozo conceded giving part of Hughes' contribution to Nixon bros and Woods; that over $50,000, including $23,500 in $100 bills (form in which Hughes money was delivered) was spent by Rebozo for improvements to Pres' Key Biscayne, Fla, home, including $18,000 swimming pool; that Rebozo filed no Fed gift tax rept from '69 through '72; that John D Ehrlichman repeatedly put pressure on IRS to find something wrong with tax returns of Dem party chief Lawrence F O'Brien; rept contrasts these alleged efforts with treatment given Rebozo in IRS inquiry, rept cites testimony of Nixon campaign worker, later Hughes employe, Richard G Danner which contradicts White House statements that Nixon, while a Pres candidate in '68, had no knowledge of attempts to solicit contribution from Hughes; rept speculates that part of Hughes' $100,000 gift may have come from his Las Vegas Sands Hotel, making it illegal corp gift; rept notes information from Fed Reserve Bd on origin of 1,001 $100 bills making up Hughes' gift supports Rebozo's revised testimony that money was delivered in mid-'70, but not his initial assertion that first payment was in '69; notes IRS investigation of ownership of $100,000 for tax purposes was delayed for 10 months by top IRS and Treas Dept officials, and that 'advance notice' of investigation was given to both Rebozo and Nixon; illus of and brief explanations about principal figures named in rept; they are: Rebozo, Danner, Robert A Maheu, former Hughes' aide, Thomas H Wakefield, Kalmbach's atty, and Kalmbach (L)

Asiatic Petroleum Corp, which along with 3 other members of Royal Dutch Shell group was accused in Feb by NYS Atty GM Lefkowitz of withholding home-heating oil from mkt in summer of '73 and selling it at exorbitant prices that winter, agrees to sell specified amts in NY area this summer and next, when such fuel is cheaper; Lefkowitz drops efforts to obtain injunction against cos that would forbid them to continue alleged illegal practices, but leaves open possibility that grand jury may take further action against profits cos gained during '73 period; Asiatic agrees to rept all its heating-oil sales and inventories to Lefkowitz's office; charges against cos revd; both cos and Lefkowitz claim victory in settlement (M)

NY Times survey finds 80% of businessmen feel Watergate affair has seriously affected Nixon's ability to manage US business and econ affairs; details responses to various questions on issue (L)

White House officials say Pres Nixon personally decided against releasing portion of tape-recorded conversation on Mar 22 '73 in which he discussed a cover-up of Watergate affair; say Nixon ordered portion withheld from White House-edited transcripts made public Apr 30 because it was of 'dubious relevancy' to Nixon's role in case; HR Judiciary Com has released its transcript of tape; White House press sec Ronald L Ziegler and Nixon's chief defense atty James D St Clair have defended Nixon's actions and played down differences in transcripts in separate news confs contending that even though Nixon on occasion urged cover-up of crime and other illegal actions, both transcripts, if read as a whole, prove Nixon innocent; Nixon's statement to ex-Atty Gen J M Mitchell about stonewalling quoted; Nixon's decision to withhold that section of conversation raises questions because Nixon and his assts said when transcripts were released Apr 30 that the only deletions were words on tapes that could not be heard, vulgar and profane language and passages not pertinent to Nixon's role in Watergate; Ziegler says in some instances com transcripts prove helpful to Nixon; says transcripts disprove NY Times article reptg that sources said Nixon, on 1 occasion, had called Judge John J Sirica a 'wop'; article, however, referred to tape submitted to Fed Dist Ct in NY for recent trial of Mitchell and Maurice H Stans, not to tapes that were made avaiable to HR Judiciary Com that were just released (L)

The College All‐Star game, traditional opener of the National Football League exhi bition season, was canceled yesterday for the first time in its 41‐year history. Sponsors of the charity game attributed the decision in large part to the N.F.L. players’ strike. Page 21.