Page 420 of 703

MORI DocID: 1451843

EMPLOYEE
BULLETIN

No. 359
21 May 1975

DDCI STATEMENT ABOUT THE WATERGATE CASE

The following statement was made by Lieutenant General Vernon A. Walters
during a recent appearance before a Congressional Committee.

On 23 June 1972 I was ordered by a phone message from my office
to be at the White House at about 1300 with Director Helms. I had
lunch with Mr. Helms and we went to Mr. Ehrlichman's office at the
White House. When we arrived, Mr. Ehrlichman, Mr. Haldeman, the White
House Counsel and myself. As I recall it, Mr. Haldeman said that the Watergate
incident was causing trouble and was being exploited by the opposition.
It had been decided at the White House that I would go to
Acting FBI Director Gray and tell him that no further inquiries into the
Watergate matter might jeopardize some of the CIA's covert activities in that
area. An appointment was made for me to see Mr. Gray at 1430 that
Some day. I went over and told him that I had been directed by top
White House officials to tell him that further investigation into the
Mexican aspects of the Watergate episode might jeopardize some of the
Agency's covert actions in that area. He said that he understood the
agreement between the FBI and the Agency regarding their sources but
that this was a complicated case. He would not violate the agreement
with CIA regarding sources. On my return to the Agency I checked to
see whether there was any danger to the Agency's covert sources if
the Mexican part of the investigation continued and ascertained that
no one believed that this was the case. No one had any knowledge of
the plan to bug the Democratic National Committee.

On June 26 the Counsel to the President John Dean called me and
asked me to come and see him about the matter I had discussed with
Haldeman and Ehrlichman. He said I could check with Ehrlichman and
I did. He said I could talk to Dean so I went to Dean's office at
1145 on June 26.

I informed Dean that I had checked carefully to see whether
there was any jeopardy to the Agency's sources by a further investigation of the Mexican sources of this episode and had ascertained that none
existed. Dean then asked whether the CIA might have taken a part in the
Watergate episode without my knowing it. I said that this was not

00416

[vision-ocr]