Galesburg Register-Mail from Galesburg, Illinois on July 6, 1973 · Page 1
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Galesburg Register-Mail from Galesburg, Illinois · Page 1

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Friday, July 6, 1973
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Home Papw 0/ 70 CommunltiM Fair, Warmer Tonight Low 70» Clear; Warm Saturday 4 fl #*f#r NttoBpaper VOLUME LXXXII 158 GALESBURG, ILLINOIS 61401 — FRIDAY, JULY 6, 1973 PRICE TEN CENTS American Donations Illegal WASHINGTON (UPI) - Special Watergate prosecutor Archibald Cox said today that American Airlines had voluntarily admitted it made illegal cash donations to President Nixon 's re-election campaign. George A. Spater, chairman of American Airlines, said "cash contributions totaling $75,000" were solicited from the airline by Herbert Kalmbach, Nixon 's personal lawyer. Kalmbach said American was "among those from whom $100,000 was expected," Spater claimed. Under federal law, corporate contributions to political campaigns are barred. "Some of the contributions came from corporate funds," Spater admitted. "At my direction American officials made the payments of $75,000 in cash in five installments from November, 1971 through March 1972, of which the first four, totaling $20,000, came from non- corporate sources and the last $55,000, U.S. Devaluation Rumors Reported Launches Giant Kite Dinesh-Bahadur, who operates a kite shop in San Francisco, a monster 130 feet long, in Golden Gate Park. UNIFAX launches what he claims is one of the world's largest kites, U.S. ers Chou En-lai PEKING (UPI) Preitiieti Chou En-iai met today with members of a visiting American congressional delegation and complained bitterly about continued U.S. bombing in Cambodia. The 73 -yearald Chinese* leader met for almost two hours with the eight congressmen, their wives and aides. He broke off the meeting when he had'to leave to host a banquet in honor of exiled Cambodian Head of State Prince Norodom Sihanouk who returned to Peking Thursday from a two- month tour of Africa and Eastern Europe. Chou dwelt on the Cambodian question but also discussed the latest nuclear arms agreement signed between the United States and the Soviet Union and the Taiwan issue. : : He also told-the;congressmen as they left that he would never visit the United States so long a»" the "Chiang Kai-shek clique"- had an ambassador in Washington. -, ^Cfiou said Sihanouk told him that American bombing in Cambodia had escalated since the U.S. Congress put an Aug. 15 deadline on the bombing by cutting off funds. Fight for 20 Years He also said that Sihanouk told him his supporters in Cambodia were prepared to fight on for 20 years if necessary. "He (Sihanouk) will fire some cannons this evening," Chou said in reference to Sihanouk's anticipated banquet speech. Delegation leader Sen. Warren G. Magnusen of Washington told Chou that he and the Cambodians should be patient because a date for the bombing halt had been set. "Just wait one more moon," Magnuson said. Chou retorted angrily, "How can a man be patient when bombs are falling on his head?" Chou said the bombing should be stopped now. s Rep.John J. McFall, D.,Calif., asked Chou what assurances there would be that North Vietnam would not use' Cambodia as a staging area for attacking South Vietnam if the bombing halted and the United States withdrew completely from the area. Avoided Reply Chou avoided a direct reply to McFali's question but said that if Cambodia were left alone to settle its own problems the Cambodians would never let any country interfere in their internal affairs and would comply with article 20 of the Paris peace agreements on Indochina. |Chfc^^ about the new agreement signed by President Nixon and Soviet Communist Partjr General Secretary Leonid I. Brezhnev on limitation of nuclear wea pons. He said the agreement was not even a treaty—" just a piece of paper"-and said the Soviet Union had no regard even for treaties. He told the congressmen that China and Russia had a friendship an d cooperation treaty signed in 1950 but it had been broken and disregarded by the Soviet Union. LONDON (UPI) - The U.S. dollar, already at an all time low, fell even further today in Europe, Hong Kong and Tokyo in the face of a flood of rumors that the United States would devalue the dollar for the third time this weekend. The London Evening Standard said a major development to dec! with the monetary crisis could be imminent and may involve linking European Common Market currencies to gold instead of the dollar. It said the situation had reached crisis dimensions and that "market men were talking of a crunch being imminent —possibly this weekend." First Devaluations The United States last devalued the dollar on Feb. 12when Treasury Secretary George P Shultz announced a 10 per cent devaluation immediately, the second in 14 months. The first devaluation came when interna tional exchange rates underwent a major revision in December 1971 at the Smithsonian meeting in Washington. "Today will 'be catastrophic," said a French bank official in Paris as currency trading opened with the dollar priced at between 3.94 and 3.95 francs. Not since 1957, when it briefly touched 3.70 francs, has the dollar brought less of the French currency. Gold's price jumped as the dollar's value sank—a recurring pattern. It leaped $4 an ounce at the morning price fixing to $127 on London's big bullion market. The official U.S. price is $42.22 an ounce. "People are nervous about the dollar and the pound, and are just going into gold," said a dealer for one of the big five bullion firms, Samuel Montagu. "This situation is absurd," said one London currency dealer. He said hardly anyone wanted to hold either pounds or dollars over the weekend. There has to be a bottom level somewhere," another London dealer said. "But when and where nobody knows. There are those saying that things will not quiet down until there are just two German mairks to the dollar. Others put it even lower than that." Two-Mark Level Neared The dollar was approaching the two-mark level today. It opened at a record low exchange rate of 2.2850 marks in trading between West German banks — an overnight devaluation of 2.1 per cent from Thursday's 2.3350 close. By mid-morning today, it had risen slightly to 2.30 marks. paid in March 1972, came from corporate sources." The Nixon re-election committee is alleged to have received $1.7 million in non- reported cash contributions before the April 7,1972 deadline when stricter campaign fund reporting laws went into effect. Spater said he took full corporate responsibility for the decision to turn over the funds to the Committee to Re-Elect the President (CRP), but he called for reform of the campaign financing laws. "Based on my knowledge and experience in the business community, I believe that such pressures have been regularly applied by campaign solicitors, and that contributions made by corporate officers and em­ ployes are directly or indirectly financed out of corporate funds to an extent that creates a significant national problem." Under law, corporate officers and employes arc allowed to give funds to political campaigns even though the corporation itself is barred. "We need stronger campaign financing laws. The present laws are hypocritical," Spater said in a statement released by the airline. Spater indicated that he felt he was under great pressure to contribute. "I knew Mr. Kalmbach to be both the President's personal counsel and counsel for our major competitor. I concluded that a substantial response was called for," he said. American's direct competitor is United Airlines. "United Air Lines is totally unaware of any corporate contributions to any political organization or campaign fund," a spokesman said. Earlier, United hired Dwight L. Chapin, Nixon's appointment secretary, after he left the White House when his name was linked with Watergate. The citizens lobby Common Cause Thursday failed in an attempt to have former Commerce Secretary Maurice Stans held in contempt for refusing to surrender the re-election committee's complete financial records. Campaign Funds Used for Dinner WASHINGTON (UPI) - Con-ltcc. He said he did not know of grcssional investigators have [the loan of Nixon committee President To Meet Chinese Diplomat SAN CLEMENTE, Calif. UPI —The ranking Chinese diplomat in the United States flew to California Thursday to meet with President Nixon, who is trying to negotiate an end to the Cambodian conflict before the bombing halt imposed by Congress takes effect Aug. 15. Nixon and Huang Chen were due to meet at the Western White House this- afternoon. The meeting was scheduled for 2:30 p.m. EDT. White House aides indicated the Cambodian conflict was at the tap of Nixon's agenda of matters to discuss with Huang. The talks also were expected to take up Henry Kissinger's trip to Peking next month, and a possible visit to the United States this fall by Chinese Premier Chou En-lai. Diplomatic observers were taking with a grain of salt protestations by Prince Noro­ dom Siiianouk that he would not see Kissinger when the presidential adviser visits Peking, where Sihanouk, the deposed Cambodian leader, has been living in exile for three years. They stress that Sihanouk has reversed his positions frequently in the past and he simply may be trying to strengthen his bargaining position. While tying its Cambodian policy to the Lon Nol government, the United States now appears willing to push talks with .Sihanouk, who may be able to rally the opposition forces under his leadership. While the Cambodian" crisis was expected to be the main thrust of the talks, Nixon and Kissinger were also ready to reassure Huang that recent summit diplomacy with Soviet leader Leonid I. Brezhnev in no way compromised improving Sino-American relations. Invitation Extended An invitation for Chou and Mao Tse-tung to visit the United States was extended by Nixon during his trip to Peking in February, 1972. There was a possibility that Chou may come as head of the Chinese delegation to the United Nations, although he has said he would not visit Washington while the Nationalist Chinese maintain an embassy in the capital. Nixon last met with Huang it Washington on May 20, and he appeared then to be fishing for an invitation to pay a return visit to China next spring. Nixon also has invited to the Western White House Dr. Michael DeBakey, open heart surgery pioneer, who showed up on the "enemies^ list" disclosed by former White House Counsel John W. Dean in the Senate Watergate hearings. Deputy Press Secretary Gerald Warren said that DeBakey was summoned by Nixon to give his impressions of his recent trip to the Soviet Union. Warren said that neither DeBakey nor Huang would be available to reporters after consultations with Nixon. Kissinger has arranged a dinner party for Huang in Los Angeles tonight so that the envoy may meet some California celebrities. referred to the Justice Depart ment "apparent violations" of the law in the transfer of some of President Nixon's campaign funds to a Maryland group that organized a dinner honoring Vice President Spiro T. Agnew. The General Accounting Office (GAO), the investigatory arm of Congress, reported Thursday it had made the referral to Attorney General Elliot L. Richardson. The GAO said it also had learned of another "apparent violation" —the acceptance by the "Salute to Ted Agnew Night Committee" of $47,600 in campaign contributions by/corporations. Since 1925, corporations have been barred from making gifts to candidates for federal office. Agnew Says He Didn 't Know In a statement, Agn'/w said he took "no part, direct or indirect, in the solicitation, collection or reporting" of funds by the Maryland commit- funds until it was reported in the press. Agnew also pointed out that he was not a candidate for vice president at the time of the dinner last spring. .--—<GAO officials undertook an investigation after Hugh W. Sloan Jr., the youthful former treasurer of the Finance Committee to Re-elect the President, told the Senate Watergate Committee of transferring $50,000 in cash to the salute committee. Ticket sales were lagging and the committee wanted to make the dinner on May 19, 1972 look more successful, Sloan related. It particularly accused Blagden H. Wharton, treasurer of the, salute committee, of "knowingly and willfully making a false, fictitious or fraudulent statement" to the GAO in listing 31 fictitious donors to account for the $50,000 and then "willfully subscribing under oath to material he believed to be untrue." Krogh Takes Fifth Amendment In Watergate West Investigation Where to Find It 2 SECTIONS Abingdon 23 Amusement 6 Bushnell 13 Churches 12 Classified Ads _ 24-25-26-27 Comics-Radio ... 20 Editorial 4 Galva 13 Hospital Notes . 15 28 PAGES Knoxville 23 Markets 21 Monmouth 14 Obituary 15 Sports -18-19 TV 910 Weather 2 Women in the News ..7-8 LOS ANGELES (UPI) Former White House aide Egil "Bud" Krogh, who once accepted responsibility for the Ellsberg burglary, took the 5th Amendment Thursday before the grand jury investigating the crime. Krogh spent only five minutes before the "Watergate West" grand jury, made a' brief statement to reporters that took less than a minute, then left. Although the grand jury proceedings are secret, it was apparent from the in-and-out appearance by Krogh, the climactic witness before the panel, that he had refused to testify. The Los Angeles Times today' quoted sources close to the case as saying Krogh took the 5th Amendment. He was expected to be the last witness • of significant importance until the grand jury reconvenes Sept. 4, when District Attorney Joseph Busch indicated he will seek criminal indictments. Not There for Fun "We're not here for the fun of it," the district attorney said. Krogh, in his letter to President Nixon resigning from the government, said it was his "overwhelming desire to take responsibility" for the burglary at the office of Daniel Ellsberg's psychiatrist by the White Rouse "plumbers." The break-in was one of the factors cited by the judge in the Pentagon Papers trial for dismissing all charges against Daniel Ellsberg on grounds of "pervasive government misconduct." Krogh had agreed to appear voluntarily before the grand jury, but later backed out on the grounds, according to his lawyer, that he was the main target of the investigation. He was subpoenaed and brought from Washington on orders of a federal judge. He told newsmen after his appearance that "some time ago, I felt compelled to make some statements about some matters currently under investigation. There has been a variety of interpretations on these statements, and I find myself subject to investigation. I have been advised by my attorney, Steven Shulman, not to make additional comments at this time." Statement Given Krogh has given investigators a notarized statement detailing his involvement in the burglary, as an assistant to former presidential adviser John Ehrlichman. He said in that statement that Ehrlichman had given him authority to use "covert operations" to find out more about Ellsberg. The district attorney said action is being undertaken in federal court to obtain documents from Watergate investigators in Washington. One of the documents is reportedly a memorandum by David Young, who worked with Krogh in the White House, indicating Ehrlichman had prior knowledge of the Ellsberg burglary plan. Ehrlichman, in his testimony before the grand jury, said he had no such prior knowledge. Busch said he had no plans to call John W. Dean III, the former counsel to President Nixon, who told the Senate Watergate hearing last week that Krogh had told him that orders for the burglary came "from the oval office" of the President. Dean's testimony could be used against Krogh, Busch said, but would be "hearsay as to anyone else, including the President." Egil "Bud" Krogh

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