Family of Secrets: The Bush Dynasty, America's Invisible Government, and the Hidden History of the Last Fifty Years

by Russ Baker

  It would be the responsibility of Poppy’s good friend Jaworski to wrest the incriminating tapes from Nixon. Poppy’s own diary, noted in All the Best, is interesting on Jaworski’s appointment and role:

  Nixon had appointed Leon Jaworski—a respected Houston lawyer and longtime friend of ours —to replace Archibald Cox as the special prosecutor. Determined to do a thorough job, Jaworski . . . subpoenae[d] an additional 65 [sic—correct number is 64] tapes and documents . . . Many more shocking revelations were on the tapes, but the most damning—the “smoking gun” tape—were a conversation from June 23, 1972 where Nixon could be heard telling Haldeman to block the FBI’s investigation of the Watergate break-in, which had occurred just six days earlier. This was proof the President had been involved, at least in the cover-up. [emphasis added]

  As noted earlier, Bush, who within eighteen months would become director of the CIA, never mentioned the CIA’s involvement in the Watergate break-in. By committing this sin of omission, Bush was leaving out some important context and smudging a trail of clues that might otherwise have led back to himself.

  The Loyalty Trail

  As noted multiple times in previous chapters, Poppy Bush appears to have labored creatively to create benign explanations for his proximity to controversial operations.

  The easiest way to do that with regard to Watergate would be to establish an auxiliary role for him or his close allies in the original plot ascribed to Nixon. That is, were an investigation to look into Watergate, it would find Nixon involved with serious wrongdoing, and find that person ever so slightly tied to that wrongdoing, but in an ultimately harmless way that would have no adverse long-term consequences. That way, he could have his cake and eat it too.

  Poppy had achieved that effect when the Townhouse Operation, run by his allies, had made sure that he was one of the recipients of its cash— though guilty of no obvious wrongdoing. The same would need to be true of Watergate.

  It is in this light that we now consider the fact that some funds involved in Watergate would be traced back to Texas members of Poppy’s team.

  In his diary entries, Bush shows no sign of finding it interesting that some of the Watergate monies traced back to close friends of his. Nixon and Haldeman, however, took note. So did acting FBI director L. Patrick Gray. Wrote Gray in his memoirs:

  We had made progress tracing the four Mexican checks to the Texas Finance Committee to Re-Elect the President. Its chairman, the Houston oilman Robert Allen, sent us back to Maurice Stans [treasurer of CREEP] . . . who acknowledged that Manuel Ogarrio may have gotten the funds from a Texas campaign contributor but declined to elaborate without talking to his lawyer . . . On August 24, another Houston oilman, Roy Winchester of Pennzoil, told agents that in April a Mexican he believed to be Manuel Ogarrio came to his office and gave him four checks valued at “over $80,000,” which Winchester then hand-delivered to [CREEP’s] Hugh Sloan in Washington.65 [emphasis added]

  The FBI, in short, was following a trail that led directly to associates of George H. W. Bush. Pennzoil was the oil company of William C. Liedtke Jr. and his brother Hugh, Poppy’s former partners in Zapata Petroleum. Winchester had flown the eighty thousand dollars by private Pennzoil jet to Washington in order to get it into Sloan’s hands before a new federal election law went into effect in April 1972 that required disclosure of the names of the campaign donors and the recipients of such funds. The ultimate effect of this information was that some people concluded that Poppy was ex-traloyal to Nixon. And despite the sinister elements, particularly the foreign money, Jaworski found no wrongdoing on Bush’s part.

  The FBI’s inquiries into the Texas money chain went nowhere, thanks to the CIA’s interference. Ditto an investigation by Texas congressman Wright Patman, an old-time populist who was chair of the House Banking Committee. Like FBI director Gray, Patman had been able to trace the money found in the pockets of burglar Bernard Barker back to the Texas chairman of the Committee to Re-elect the President, William Liedtke. But before Pat-man could issue some twenty-three subpoenas for CREEP officials, his fellow committee members voted 20–15 on October 3, 1972, to stop the investigation. 66

  What was interesting about the Texas connection was that it essentially put everyone in bed together, just as the break-in put Nixon in bed with the CIA. Even though Nixon was secretly feuding with the CIA, in the end it would appear to anyone investigating that everyone was on one team. But of course the Texans would not be found to have done anything wrong.

  In fact, nobody did much of anything to pursue that lead. Not the Senate Watergate Committee, not the Watergate special prosecutor’s office, and not the intrepid Washington Post reporters Woodward and Bernstein, who famously resolved to “follow the money” at the advice of Woodward’s mysterious source, Deep Throat. All would claim that they were more interested in the dollar trail than the Watergate burglary itself, but when they got even remotely close to the source of the funds—the Texas money—they all stopped.

  For Bush, this was, if anything, proof to Nixon of his loyalty. His group had raised money for CREEP and for the burglars, had sent a jet to bring the money. It was like Bush’s Parrott phone call: I was on the right side, so how could I be a traitor?

  Poppy’s Foundation

  Perhaps the greatest contribution of the Washington Post’s Richard Harwood, whose reporting drew from investigations by House Banking chairman Wright Patman, was his citation of dozens of prominent figures and entities that served as conduits for CIA funds. Although Harwood did not explore these connections in depth, it is striking to discover how many of the CIA-connected figures were Texans. And not just Texans, but Texans with important ties either to Poppy Bush or to November 22, 1963, or both.67 Among those listed was the family foundation of the head of Dallas’s Republic National Bank, whose building was the headquarters of the Dallas oil-intelligence elite, including Dresser Industries and—for years—of George de Mohrenschildt. Another entity identified by the Post as connected to the CIA was the Houston-based San Jacinto Fund, which was incorporated by oilman John W. Mecom Sr., one of George de Mohrenschildt’s backers. And a third was the family foundation of Peter J. O’Donnell Jr., who had been the chairman of the Republican Party in Texas at the time of the Kennedy assassination.

  O’Donnell was responsible for the candidacies of both Poppy Bush and Army Intelligence man Jack Crichton for statewide office in the fall of 1963. It was O’Donnell, in other words, who provided both men with the cover they needed to move about Texas and meet with all sorts of people in the critical period before and after November 22. The significance of O’Donnell’s presence on this list of the CIA-connected, or that of the others mentioned here, was not necessarily apparent at the time, and was not raised in the Post or elsewhere.

  On Oil Connections

  There is one other intriguing aspect to the Texas connection.

  It turns out that in March 1974, as the effort to oust Nixon continued to mount, Congress and the Nixon administration were making things very uncomfortable for the Bush crowd.

  There were news reports that federal officials and members of Congress were looking into possible antitrust violations by people who sat simultaneously on multiple oil company boards. In a December 1973 letter responding to members of Congress, an assistant attorney general had confirmed that the Nixon Justice Department was looking at these so-called interlocking directorates.

  Most striking about the long list of violators is this: a significant majority of them had been friends of, fund-raisers for, or major donors to Poppy Bush. Many had also been employers or sponsors of George de Mohrenschildt. The list included the son of oil depletion king Clint Murchison Sr.; Admiral Arleigh Burke Jr., who had allied himself with Allen Dulles in post–Bay of Pigs inquiries into the disaster and criticized Kennedy’s handling of the invasion; George Brown of Brown and Root, backer of LBJ and Poppy and employer of de Mohrenschildt; Dean McGee, former business partner of the late oil depletion backer Senator Rober
t Kerr; Toddie Lee Wynne, whose family provided lodging to Marina Oswald after Kennedy’s assassination; military intelligence man Jack Crichton; and Neil Mallon, Poppy’s well-connected “uncle.”

  Who had been investigating these men? Nixon’s Justice Department. It was almost a perfect echo of what was going on in JFK’s final year in office—and in life. Jack Kennedy had been fighting with the same group of independent oilmen over the oil depletion allowance, and Bobby Kennedy’s Justice Department had sent grudging FBI agents into oil company offices to examine their books. Nixon and his old nemesis JFK had both angered the same people, and both had been removed from the presidency.

  The Extent of the Infiltration

  Nixon was “paranoid” about the CIA. He imagined that agency operatives were everywhere, working to undermine him. Was he crazy, or was he right?

  So far, we have seen many people whose actions undermined Nixon, and found in each case what appear to be CIA connections: Dean, Dean’s lawyers, Hunt, Butterfield (who exposed the White House taping system), Jaworski, McCord, Barker, Martinez, Sturgis.

  And then there is Jeb Magruder, who played a crucial role in accusing his boss John Mitchell, Nixon’s campaign manager, and Nixon himself of being behind the Watergate activities. Magruder was a crucial figure in the downfall of Nixon because he had been the number-two man to John Mitchell, and Mitchell became the highest-ranking member of Nixon’s team— indeed, of any administration—to go to jail. Nailing Mitchell was crucial to nailing Nixon. Magruder would offer detailed, though often demonstrably false, testimony implicating Mitchell, asserting that not only did Mitchell know about the DNC break-ins, but that he was in fact primarily responsible for orchestrating the cover-up.

  Back in college, Magruder’s adviser had been William Sloane Coffin, the liberal theologian. Coffin is most remembered for his opposition to the Vietnam War. Yet his background included membership in Skull and Bones and service in the Central Intelligence Agency that he himself acknowledged. He also had been chaplain at Andover and was a lifelong friend of Poppy Bush. Indeed, Poppy had brought Coffin into Skull and Bones. “There’s no specific creed that they are supposed to go out and spread,” Alexandra Robbins, author of a book on Skull and Bones, told the Washington Post. “They do have this agenda to further and bolster their superiority complex . . . and to get its members into positions of power, and to have those members hire other members into similar positions of power.” Coffin’s subsequent liberal credentials notwithstanding, during the period in which he had an influence on Magruder, he was still a creature of that world. Years later, when Magruder became a key witness against Nixon’s aides in the Watergate trials, his lawyer was James Bierbower, who had served as vice president of Southern Air Transport, one of the CIA’s largest air proprietaries.68

  Denial

  The reader may be wondering why almost everything in this chapter—in particular its theme that Nixon appears to have been ousted in a nonviolent coup—is not common knowledge.

  To understand why, it is necessary to contemplate the system through which information is disseminated to the public, and the mind-set with which it is received. The common narrative on the most complex, disturbing events is usually generated by insiders—so-called investigative commissions made up of figures acceptable to the establishment, and by a handful of designated authorities deemed suitably presentable as well. For the rest of us, it is almost always easier on the conscience to accept the most benign interpretation. If everything is tied up neatly, then we do not have to do anything. The key to it all is the gatekeepers.

  I got an insight into all this when I telephoned Stanley Kutler, an academic who has authored several books related to Nixon and Watergate, and whose name comes up most often on Internet searches under the term “Watergate scholar.” I had hoped to find some “expert” to review my manuscript and poke holes where holes needed to be poked. I later learned that Kutler had testified for John Dean in a legal proceeding against the authors of Silent Coup, and in another against Gordon Liddy, who had alleged that Dean was the guiding hand behind the Watergate burglary.

  When I called Kutler, he asked, “Have you spoken to John?” When I asked what John he meant, he said, “John Dean. He’s a very close personal friend.” When I mentioned Dean’s aggressiveness toward writers, he replied, “I have enough sense never to challenge him in a court of law. Of course he’s litigious, when you have all that crap coming down on you.”

  (In the end, Dean dropped his Silent Coup suit; coauthor Len Colodny, who declined to settle with the former White House counsel, received $410,000 from his own insurance company to allow Dean to dismiss the lawsuit—and a pledge from Dean not to sue in the future. And a federal judge dismissed Dean’s suit against Liddy.)

  Dean doesn’t seem to have suffered inordinately for his role in Watergate. His one-to-four-year jail sentence became, in his own words, just four months, part of it in a government “safe house.” He made millions off book deals and moved to the West Coast, where he became an affluent Beverly Hills investment banker. Asked about his business success, Dean has been markedly secretive, declining to name his partners or clients. “I just quietly want to do my own thing, without flash or splash . . . We have no advertising, no marketing, and there’s no shortage of business,” Dean said.69

  In the years since Watergate, Dean has assiduously offered himself as available to help others understand the complicated affair, thereby narrating his own saga. In this, he again has positioned himself, with great effect, at the control point for information. These “assists” have ranged from helping an investigative reporting class at the University of Illinois whose project was to try to discover Deep Throat’s identity to aiding documentary makers.70

  Jim Hougan, author of Secret Agenda, which posits a CIA role in Watergate, was hired by Time magazine to review Silent Coup at the time of its release in 1991. Hougan says that after receiving the assignment, he got a call from Hays Gorey, the onetime Time correspondent who had lionized Dean in 1973 and later coauthored Maureen Dean’s memoirs. Gorey, by 1991 a Time editor, wanted to be assured that Hougan planned to pan Silent Coup. According to Hougan, when he told Gorey that he found the book, which deeply implicated Dean in the origins of Watergate, to be thoroughly researched and well documented, Gorey pulled the assignment. And in an interesting twist, it turns out that Maureen Dean, before meeting John during his White House residency, had been a Dallas-based flight attendant. She had been married to George Owen, who worked for Clint Murchison Jr.—a central figure in the oil depletion–George de Mohrenschildt circle. At minimum, it certainly is a small world.

  Meanwhile, oblivious to the most basic questions about Woodward, everyone continued the parlor game of guessing the “true identity” of Deep Throat. Most folks missed the statement of Woodward and Bernstein’s former literary agent David Obst to the New York Times that Deep Throat, as such, was a fiction, concocted for purposes of making All the President’s Men a snappier read. “Mark Felt was an invaluable source . . . but he was not Deep Throat—there was no Deep Throat.”71 Even the book was the idea of Robert Redford, who had initially pitched a movie deal, and thought publishing a book first would make sense.

  Questions about the whole Deep Throat exercise can be found buried in many articles on the subject. For example, in the above-mentioned Times article, titled “Mystery Solved: The Sleuths,” about the Mark Felt revelations, Anne E. Kornblut begins, “With the most tantalizing mystery in recent political history solved,” but seven paragraphs below she also notes, “Some cases of mistaken identity appear to be the result of false clues planted by Mr. Woodward and Mr. Bernstein in their book, ‘All the President’s Men,’ as they tried to protect Mr. Felt.”72

  None less than Robert McCandless, Dean’s cocounsel and former brother-in-law, would tell an Oklahoma newspaper reporter in a little-noted interview in 1992, on the twentieth anniversary of Watergate, that he had been one of Woodward’s sources.

  “I was
at least one-third of Deep Throat,” Robert McCandless, a Hobart native, told The Daily Oklahoman’s Washington bureau in a copyright story in today’s editions . . . McCandless, 54, said he met with Woodward and Bernstein “at least four dozen times” at the George Washington University Faculty and Alumni Club . . . He said his worry then was that disclosure of his giving information about his client might lead to his disbarment.73

  There you have a man with apparent intelligence connections admitting to having fed a story to another man with apparent intelligence connections— yet almost no one knows this.

  Indeed, the vast majority of Americans never learned either the key facts about Woodward or of these statements from insiders about the fictitious or composite nature of Deep Throat. Thus, when Vanity Fair was approached in 2005 with the claim that former FBI official W. Mark Felt Sr. was the real Deep Throat, it is understandable that the magazine thought it had the scoop of a lifetime. The Felt story generated tremendous publicity and is now the conventional wisdom. Given the above information that there was in fact no single source known as Deep Throat, one has to ask about the motives of those who came forward to offer up Felt, a man who had previously insisted he was not Deep Throat, and who by 2005 was seriously debilitated by old age and could not even speak for himself.