FBI Finds Nixon Aides Sabotaged Democrats

The investigators said that a major purpose of the sub rosa activities was to create so much confusion, suspicion and dissension that the Democrats would be incapable of uniting after choosing a presidential nominee.

The FBI's investigation of the Watergate established that virtually all the acts against the Democrats were financed by a secret, fluctuating $350,000 -$700,000 campaign fund that was controlled by former Attorney General John N. Mitchell while he headed the Justice Department. Later, when he served as President Nixon's campaign manager, Mitchell shared control of the fund with others. The money was kept in a safe in the office of the President's chief fundraiser, former Secretary of Commerce Maurice Stans.

According to sources close to the Watergate investigation, much of the FBI's information is expected to be revealed at the trial of the seven men indicted on charges of conspiring to eavesdrop on Democratic headquarters at the Watergate.

"There is some very powerful information," said one federal official, "especially if it becomes known before Nov. 7."

A glimpse of the Nixon campaign's spying and disruptions are to be found in the activities of Segretti. According to investigators, Segretti's work was financed through middlemen by the $350,000-$700,000 fund.

Asked by The Washington Post to discuss Segretti, three FBI and Justice Department officials involved in the Watergate probe refused. At the mention of Segretti's name, each said -- in the words of one -- "That's part of the Watergate investigation." One of the officials, however, became angry at the mention of Segretti's name and characterized his activities as "indescribable."

Segretti, visited in his West Coast apartment last week by Washington Post special correspondent Robert Meyers, repeatedly answered questions by saying, "I don't know." "I don't have to answer that." And "No comment." After 15 minutes, he said: "This is material for a good novel, it's ridiculous," and chased the reporter outside when he attempted to take a picture.

According to the three attorneys interviewed by The Post, Segretti attempted to hire them in 1971 as undercover agents working on behalf of President Nixon's re-election. All three said they first met Segretti in 1968, when they served together in Vietnam as captains in the Army Judge Advocate General Corps.

One of the lawyers, Alex B. Shipley, a Democrat who is now assistant attorney general of Tennessee, said Segretti told him, "Money would be no problem, but the people we would be working for wanted results for the cash that would be spent."

Shipley, 30 added: "He (Segretti) also told me that we would be taken care of after Nixon's re-election, that I would get a good job in the government."

According to Shipley, Segretti said that the undercover work would require false identification papers under an assumed name; that Shipley recruit five more persons, preferably lawyers, for the job; that they would attempt to disrupt the schedules of Democratic candidates and obtain information from their campaign organizations; that Shipley would not reveal to Segretti the names of the men he would hire; and that Segretti could never reveal to Shipley specifically who was supplying the money for the operation.

Shipley recalled in a telephone interview: "I said, 'How in hell are we going to be taken care of if no one knows what we're doing?' and Segretti said: 'Nixon knows that something is being done. It's a typical deal.' Segretti said, 'Don't-tell-me-anything-and-I-won't-know.'"