Nixon and Haldeman, three days after the June 23 meeting. [Source: Washington Post]With the FBI tracing the Watergate burglars’ $100 bills to GOP fundraiser Kenneth Dahlberg (see August 1-2, 1972), President Nixon orders the CIA to attempt to stop the FBI from investigating the Watergate conspiracy, using the justification of “national security.” One of the areas Nixon specifically does not want investigated is the $89,000 in Mexican checks found in the account of one of the Watergate burglars, Bernard Barker (see April-June 1972). [Reeves, 2001, pp. 508-510; Woodward, 2005, pp. 59-60] Author James Reston Jr. will write in 2007: “The strategy for the CIA to block the FBI’s investigation of the Mexican checks… was devised by Haldeman and Nixon. This was a clear obstruction of justice.” [Reston, 2007, pp. 33-34] The plan, concocted by Nixon campaign chief John Mitchell, is to have deputy CIA director Vernon Walters tell the new FBI Director, L. Patrick Gray, to, in the words of Nixon chief of staff H. R. Haldeman, “stay the hell out of this… this is, ah, business we don’t want you to go any further on it.” Nixon approves the plan. White House aide John Ehrlichman will later testify that he is the one tasked with carrying out Nixon’s command; Nixon tells Ehrlichman and Haldeman to have the CIA “curb the FBI probe.” [O.T. Jacobson, 7/5/1974 
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Nixon: FBI, CIA Should Back out of Investigation – In his discussion with Nixon, Haldeman says that “the FBI is not under control, because Gray doesn’t exactly know how to control them, and they have, their investigation is now leading into some productive areas, because they’ve been able to trace the money… and it goes in some directions we don’t want it to go.” Haldeman also says that the FBI has a witness in Miami who saw film developed from one of the Watergate burglaries (see Mid-June 1972). He tells Nixon that the FBI is not aware yet that the money for the burglars can be traced to Dahlberg, who wrote a $25,000 check that went directly to one of the Watergate burglars. That check is “directly traceable” to the Mexican bank used by the Nixon re-election campaign (CREEP). Haldeman says that he and Ehrlichman should call in both Gray and CIA Director Richard Helms and tell both of them to have their agencies back out of any investigation. Nixon agrees, saying that considering Hunt’s involvement: “that will uncover a lot of things. You open that scab there’s a hell of a lot of things and that we just feel that it would be very detrimental to have this thing go any further. This involves these Cubans, Hunt, and a lot of hanky-panky that we have nothing to do with ourselves.” Haldeman says he believes that Mitchell knew about the burglary as well, but did not know the operational details. “[W]ho was the assh_le who did?” Nixon asks. “Is it [G. Gordon] Liddy? Is that the fellow? He must be nuts.” Haldeman says Mitchell pressured Liddy “to get more information, and as [Liddy] got more pressure, he pushed the people harder to move harder on.…” Both Nixon and Haldeman think that the FBI may believe the CIA, not the White House, is responsible for the burglary; Nixon says: “… when I saw that news summary item, I of course knew it was a bunch of crap, but I thought ah, well it’s good to have them off on this wild hair thing because when they start bugging us, which they have, we’ll know our little boys will not know how to handle it. I hope they will though. You never know. Maybe, you think about it. Good!” A short time later in the conversation, Nixon instructs Haldeman to tell his staffers not to directly lie under oath about their knowledge of the burglary, but to characterize it as “sort of a comedy of errors, bizarre,” and warn the FBI that to continue investigating the burglary would “open the whole Bay of Pigs thing up again. And, ah, because these people are plugging for, for keeps and that they should call the FBI in and say that we wish for the country, don’t go any further into this case.… That’s the way to put it, do it straight.” [AMDOCS Documents for the Study of American History, 6/1993] Later in the day, both Walters and CIA Director Richard Helms visit Haldeman to discuss the situation. Helms says that he has already heard from Gray, who had said, “I think we’ve run right into the middle of a CIA covert operation.” Helms and Walters both agree to pressure Gray to abandon the investigation, but their efforts are ineffective; the assistant US attorney in Washington, Earl Silbert, is driving the investigation, not the FBI. [Reeves, 2001, pp. 508-510]
Gray: Improper Use of FBI – Soon after Nixon’s order, acting FBI Director L. Patrick Gray tells Nixon that his administration is improperly using the CIA to interfere in the FBI’s investigation of Watergate. Gray warns Nixon “that people on your staff are trying to mortally wound you.” Gray is himself sharing Watergate investigation files with the White House, but will claim that he is doing so with the approval of the FBI’s general counsel. [New York Times, 7/7/2005] It is unclear whether Gray knows that Nixon personally issued the order to the CIA. Soon after the order is issued, a number of the FBI agents on the case—15 to 20 in all—threaten to resign en masse if the order is carried out. One of the agents, Bob Lill, will later recall: “There was certainly a unanimity among us that we can’t back off. This is ridiculous. This smacks of a cover-up in itself, and we’ve got to pursue this. Let them know in no uncertain terms we’re all together on this. [T]his request from CIA is hollow.” [Woodward, 2005, pp. 189-191] No such mass resignation will take place. Because of evidence being classified and redacted (see July 5, 1974), it will remain unclear as to exactly if and how much the CIA may have interfered in the FBI’s investigation.
‘Smoking Gun’ – The secret recording of this meeting (see July 13-16, 1973), when revealed in the subsequent Watergate investigation, will become known as the “smoking gun” tape—clear evidence that Nixon knew of and participated in the Watergate cover-up. [Washington Post, 2008] Pinning Nixon down on CIA Interference – Frost asks about the conversations of June 23 (see June 23, 1972), when Nixon told his aides to have the CIA interfere with the FBI’s investigation of the burglary. Nixon tries dodging the point, emphasizing how busy he was with other matters that day and quibbling about the definition of the phrase “cover-up,” but finally says that he had no criminal motive in ordering the CIA to stop the FBI from investigating the matter of the Mexican checks found in Watergate burglar Bernard Barker’s bank accounts. He was merely engaged in political containment, he says, and besides, two weeks later, the FBI traced the checks to a Mexican bank anyway (see Before April 7, 1972 and August 1-2, 1972). Nixon emphasizes his instructions to then-FBI director L. Patrick Gray to move forward on the investigation (see July 6, 1972). (Later, Nixon staff member Jack Brennan will admit that they had almost convinced Nixon to admit to the illegality of the June 23 orders, but Nixon had demurred.)
‘You Joined a Conspiracy that You Never Left’ – It now falls to Frost to confront Nixon with the strictures of the law and the evidence that he had broken those laws. Frost says, “But surely, in all you’ve just said, you have proved exactly that that was the case, that there was a cover-up of criminal activity because you’ve already said, and the record shows you knew, that Hunt and Liddy [E. Howard Hunt and G. Gordon Liddy, the leaders of Nixon’s “Plumbers”] were involved… you knew that, in fact, criminals would be protected.” Nixon protests, “Now just a moment,” but Frost says, “Period.” Frost lectures Nixon on obstruction of justice, saying: “The law states that when intent and foreseeable consequences are sufficient, motive is completely irrelevant.… If I try to rob a bank and fail, that’s no defense. I still tried to rob a bank. I would say you tried to obstruct justice and succeeded in that period” between June 23 and July 6. Nixon retorts that he does not believe Frost knows much about the details of the obstruction of justice statutes, but fails to move Frost, who has been carefully instructed in the obstruction statutes all week. Frost eventually says: “Now, after the Gray conversation, the cover-up went on. You would say that you were not aware of it. I was arguing that you were part of it as a result of the June 23 conversation.” Nixon repeats, “You’re gonna say that I was a part of it as a result of the June 23 conversation?” Reston later writes, “It was a crucial moment, a moment that took considerable courage for David Frost.” Frost replies: “Yes.… I would have said that you joined a conspiracy that you never left.” “Then we totally disagree on that,” Nixon retorts. Reston later writes: “No journalist in America, I concluded, would have had the courage of Frost in that vital moment. But therein lay the failing of American journalism. For Frost here was an advocate. He was far beyond the narrow American definition of ‘objective journalism.’” [Time, 5/9/1977; Reston, 2007, pp. 124-126]