September 17, 1974

Repr William S Moorhead says 40 business execs who attended White House-sponsored conf on inflation suggested repeal of interest ceilings on savings accts and tax breaks on interest to encourage savings as means to draw more money into housing indus (S)

Pres Ford on Sept 16 names him Supreme Allied Comdr in Eur, effective Dec 15, and comdr of US Forces in Eur, effective Nov 1; Haig plans to leave as White House chief of staff before assuming posts; illus (M)

US Justice Dept rules that NYS lottery does not violate any Fed laws and exempts it from planned Fed crackdown; dept official Marvin R Loewry and NYS lottery and OTB dir Ronald Maiorana comment (M)

Longtime Nixon friend says White House chief of staff Gen Alexander M Haig Jr, after being advised of 'alarming state' of former Pres Nixon's health, persuaded Pres Ford to reverse his publicly stated position and grant immediate pardon to Nixon; says Haig warned Ford on Aug 29 that unless he moved quickly in announcing pardon, instead of waiting for legal action to be taken, it might be too late to avert what he called 'possible personal and natl tragedy' of Nixon's complete physical and mental collapse; Haig reptdly initiated secret pardon discussions after receiving accounts of Nixon's health from Nixon's daughters; he is said to have discussed repts with Ronald L Ziegler; source says Haig enlisted support of State Sec H A Kissinger in convincing Ford; Haig is said to have recd, either directly or indirectly, even more alarming repts of Nixon's condition from Nixon's friends Charles G Rebozo and Robert H Abplanalp; Rebozo and Abplanalp reptdly discussed matter with Nixon daughters and their husbands, who then began making public statements, 1st anonymously and later for direct attribution, about seriousness of Nixon's health; source says Ziegler and others around Nixon made no attempt to discourage even most exaggerated repts; says Haig prevailed upon Ford not to consult in advance with Repub leaders in Cong, arguing that to do so could involve delays and complications 'which the situation may not permit'; Haig evidently feared that Cong might insist that so sweeping a pardon should be authorized by resolution of Cong; informant says that, even before Ford directed his counsel Philip W Buchen to learn from Watergate prosecutor Leon Jaworski how long it might be before Nixon could be assured of impartial trial, Haig had consulted Jaworski; Haig-Jaworski meeting is said to have been for purpose of 'documenting his case' when Haig presented proposal for immediate 'humanitarian' pardon to Pres on Aug 29; Haig, soon after, is said to have assured Nixon that 'full, free and complete pardon' would be forthcoming in matter of days; assurance was recd before arrival on Sept 5 of Ford repr Benton L Becker; Becker was instructed to say that pardon was probable, provided agreement could be reached with Nixon, his atty Herbert J Miller Jr and Ziegler as to details, including response Nixon would make; arguments used by Haig to sway Ford reptdly dealt largely with Nixon's mental state, his periodic moods of depression and withdrawal and his sometimes rambling insistence that he was not guilty of any criminal offense; at that time Nixon's phlebitis was quiescent; Haig is said to have stressed several times the risk of news leaks about impending pardon; Haig is said to have insisted that only Buchen and Pres counselor Robert T Hartmann be made privy to discussions and that it was Haig who directed that any information about discussions be kept from then-White House press sec J F terHorst (L)

Pres Ford says he made 'no deal' with former Pres Nixon and insists that major reason for his decision to pardon him was 'to heal the nation,' news conf; concedes that he was surprised by antagonism that his decision created; says he still thinks he made right decison; insists that his decision was not taken 'abruptly' but explains only that he had assembled new information a few days after saying he would not act until Watergate prosecutor reached decision about Nixon; says he did not consult many people because it was 'soul decision'; says fact that 38 HR Judiciary Com members unanimously agreed that Nixon was guilty of impeachable offense is 'persuasive evidence'; says acceptance of pardon by Nixon 'can be construed by many if not all as an admission of guilt; says he has no intention of apptg any kind of comm to prepare full rept on whole Watergate chapter; says prior to issuing pardon, he had no specific information about Nixon's health from his family or anyone else except news media; illus (L)