July 20, 1974

Labor Dept repts that price of regular grade gasoline rose 1.1% in latest mo to natl average of 55.6c a gal and that premium rose 0.7% to average of 59.1c, lowest increases since study of gasoline prices started in Oct ‘73; says gasoline prices are highest in NY‐northeastern NJ area and in Honolulu (S)

Repr Frank J Brasco convicted July 19 of conspiracy to take bribes to get a PO contract for truck co owned by reputed Mafia figure John A Masiello; sentencing set for Oct 2; Brasco declines comment on whether he will withdraw from re‐election race in 11th Cong Dist, covering Bklyn and Queens; case revd; Brasco por (M)

House Judiciary Com releases transcript showing that Pres Nixon disclosed his decision to raise milk‐price supports in ‘71 after then‐Treas Sec Connally spoke to him about pol and econ considerations and dairy co‐ops’ potential for campaign funding; shows Connally warning that if Nixon vetoed probable Cong legis to raise supports, he would ‘cost (himself) the money’ and lose his ‘pol advantage'; shows Nixon replying that ‘under the circumstances, I think the best thing to do is to just relax and enjoy it'; shows Nixon and Connally discussing delay in making public decision to allow time to turn decision to pol advantage; most of material released by Judicairy Com was provided by Sen Watergate com; it traces relations between Nixon Adm and dairy co‐ops from ‘69 to ‘71; shows that Nixon's personal atty Herbert W Kalmbach accepted secret $100,000 contribution from Associated Milk Producers in Aug ‘69; that Associated atty Patrick J Hillings wrote lr to Nixon in Dec ‘70, citing plans for co‐op's $2‐million campaign fund and raising issue of reducing dairy imports; that then‐Pres asst Charles W Colson noted that $2‐million pledge in memo to Nixon in ‘70; that Sec Connally allegedly assured milk co‐op aide in ‘71 that increase in milk‐price support was ‘in the bag'; that Kalmbach was assigned by John D Ehrlichman to get dairymen to reaffirm their $2‐million pledge before Nixon would announce raised supports; com's evidence is accompanied by 217‐page volume of rebuttal presented by Nixon's atty James D St Clair (M)

House Judiciary Com on July 19 publishes documentation on ITT affair, but no document substantiates conclusively the allegation that Nixon Adm's settlement of antitrust suit against ITT was in return for co's pledge of up to $400,000 for Repub Natl Conv in ‘72; allegation is at core of com's hearings in March‐April ‘72 on nomination of Richard G Kleindienst to be Atty Gen; House com's volumn Number 5 of evidence contains much documentation that in yrs ‘69‐'71 there were many meetings of high Adm and ITT officials as co, headed by Harold S Geneen, sought to persuade Adm to drop antitrust suits or settle them favorably to co; there is no lack of documentation that Adm went to great lengths to keep from Cong coms and public set of ITT memos about those meetings; raise sharp questions about truthfulness of some testimony by Kleindienst and former Atty Gen John Mitchell at Kleindienst hearings; no document supports statement in memo of Mrs Dita Beard to her boss William R Merriam that pledge was made in return for settlement; evidence indicates that Kleindienst did not tell truth when he said that as Deputy Atty Gen he had left ITT negotiations entirely up to Asst Atty Gen Richard W McLaren; indicates Kleindienst did not tell truth when he said that he had not discussed suits with anybody at White House or with Mitchell and when he said that he had not been ‘pressured’ at any time by Nixon; historical account prepared by com staff begins with decision in ‘69 to bring antitrust suits and concludes with Kleindienst's guilty plea; there are documents in between of meetings of ITT and Adm officials, Pres order to Kleindienst, negotiations on settlement, Dita Beard memo and consequent uproar, delivery of 13 ‘politically sensitive’ ITT documents detailing meetings in ‘69‐'71, first to White House and then to SEC and efforts of Adm to prevent their disclosure of 6 other White House documents that were published today for 1st time (M)

Spain's Gen Franco issues decree, July 19, delegating his powers as ruler of Spain to designated successor Prince Juan Carlos de Borbon; has been hospitalized for 10 days with phlebitis and drs say condition is worsening; acted under Article 11 of Spain's Organic Laws, which states that in case of absence or illness of chief of state royal heir will assume his duties; most Spaniards are now anticipating momentous change in Spanish pol; last Spanish King was Alfonso XIII, Juan Carlos's grandfather, who abdicated in ‘31 in favor of 2d repub; Juan Carlos was born on Jan 5, 1938; performs 1st official act by signing joint Spanish‐Amer declaration of principles; duties discussed; illus of Prince Juan Carlos and US Amb Horacio Rivero Jr (L)