Report Links Watergate To Hughes‐Rebozo Funds
By John M. Crewdson Special to The New York Times
Still-secret rept of Sen Watergate com staff sets forth theory that Watergate break-in and intelligence-gathering plot that inspired it were end result of White House effort to suppress public knowledge of a $100,000 payment from billionaire Howard Hughes to Pres Nixon's principal business associate Charles G Rebozo; document, not yet released but obtained by NY Times, is based on analysis by Sen staff attys of published and unpublished evidence gathered during com's recently concluded 18-mo investigation; rept has not yet been released because of reptd objections by com minority counsel Fred D Thompson that it was not conclusive; previous theories advanced for Watergate break-in are considered improbable by investigators; Watergate burglars are believed to have intended to photograph files of then-Dem Natl Com head Lawrence F O'Brien, who previously had worked for 16 mos as public relations adviser to Hughes orgn; implication is that O'Brien was perhaps thought to possess documents relating to $100,000 payment, which was made while he worked for Hughes; com's published evidence includes sworn allegations that Rebozo had privately conceded giving or lending part of payment he recd from Hughes employe to Nixon's bros F Donald and Edward, to his sec-Rose Mary Woods and others; 1st public mention of payment was made by columnist Jack Anderson in Aug '71, about a yr after last of 2 $50,000 installments had been given to Rebozo; rept says that article gave rise to initial concern that some of less easily explained details of Hughes-Rebozo transaction might surface to create pol difficulties for Nixon following yr; concern was apparently justified as less than 2 mos later Las Vegas Sun publisher Herman Greenspun approached White House official in Portland, Ore, to ask if reptd 'campaign contribution' from Hughes had been used to help finance purchase of Nixon's San Clemente, Calif, estate; when word of query reached John D Ehrlichman, he sent Herbert W Kalmbach to Las Vegas to deny supposition; Kalmbach also reptdly tried to learn precisely what Greenspun knew of payment and of Hughes orgn's erstwile relationship with Donald Nixon, which had caused Nixon pol embarrassment in '60; Greenspun has since acknowledged that he possesses memos of correspondence between Hughes and Robert A Maheu relating to the $100,000; Robert Bennett, who represents Summa Corp, Hughes's umbrella orgn, initially told Sen com that he might have advised White House officials Charles W Colson and E Howard Hunt Jr in late '71 that Mahcu had put into Greenspun's office safe some of memos he apparently took with him when he left Hughes's employ; Sen rept says Bennett later denied having discussed matter with 2 officials; Jeb S Magruder testified he attended meeting, headed by then-Atty Gen J N Mitchell, at Justice Dept to consider 'Gemstone' spy plan being proposed by G Gordon Liddy; rept says Magruder testified that Mitchell showed little interest in Liddy's plan but raised possiblity of burglary of Greenspun's office
