On April 9, 1970, Mrs. Livingston said that Mr. Newman called her, and she read him her letter. Mrs. Livingston said that Mr. Newman told her that the response was sufficient. On April 10, 1970, Mrs. Livingston wrote a memorandum for the record (Exhibit I-41) in which she said that the Archivist was given copies of the various letters and memoranda in the National Archives files showing delivery of the papers on March 27, 1969. The memorandum states that the Archivist did approve of Mrs. Livingston's April 9 letter and that the letter was sent to Mr. Newman.

Preparation of tax return information on the gift of papers

Mr. DeMarco indicated that on March 28, 1970, he met with Arthur Blech at his office, and they went over a preliminary final draft of the tax return. He said he had called Mr. Blech the previous day after his conversation with Mr. Newman and informed him that the final appraised value of the gift was $576,000 and that this figure should be used in computing the deduction on the 1969 return.

Mr. DeMarco said that on April 6, 1970, he received another telephone call from Mr. Newman in which Mr. Newman advised him that the final formal appraisal was finished and had been mailed to him. Mr. DeMarco indicated that he called Edward Morgan and reported this to him.

Mr. DeMarco said that Mr. Blech had advised him that he would need a summary of the gift as required by Treasury regulations. He said that on April 7, 1970, he dictated to his secretary a summary schedule to be attached to the tax return.

Mr. DeMarco indicated that on April 8, 1970, he received the final formal written appraisal from Mr. Newman which was "date stamped April 8, 1970." He said that he made a copy of the appraisal document and attached the copy together with the summary sheet setting forth the basic facts of the gift to the final tax return.

The return was signed in Washington by both President and Mrs. Nixon on April 10, 1970. (A more detailed discussion relating to the signing of the tax return and events leading up to it are discussed below with respect to the deed.)

Errors on Newman Appraisal

Presumably as a consequence of the hurried way in which the second Nixon gift, other than the general correspondence, was selected, there are some interesting errors on the Newman appraisal (Exhibit I-442). The number of boxes in each category is correct; however, the number of items in each category does not always correspond with the number of boxes, using the rule-of-thumb suggested by Mr. Newman to Mrs. Livingston that there were 500 items per box.

The number of items of general correspondence (414,000) is precisely equal to the number of boxes (828) multiplied by 500. However, there are 500 too many items listed under "Appearance File," 1,000 too few under "Correspondence Re Invitations and Turndowns," 1,000 too few under "Foreign Trip Files," and 13,500 too many under "Visit of Nikita S. Khrushchev." As a result, the number of items in the 1,176 boxes totals 600,000, which was the original target Mr. Newman gave to Mrs. Livingston, not 588,000, which is 1,176 x 500. It is interesting to note that the Khrushchev file, where the major error occurred, consists only of newspaper clippings.

The staff has found no explanation of these errors; possibly, Mr. Newman was a bit overzealous in reconciling the number of boxes with his target number of items.

Staff analysis

From the statements of Ralph Newman and Mary Livingston, the staff believes that, except for the general correspondence files (minus the 17 boxes of sensitive correspondence), the designation of the papers to be included in the second gift of papers was not made until March 27, 1970. Furthermore, the selection was made by Mrs. Livingston, not Mr. Newman.

It is not clear who or what initiated the flurry of activity on the Nixon papers on March 27, 1970, after three months when no work was done on them, because, apparently, at least one of the men representing President Nixon, Mr. Newman, believed that they had missed the July 25, 1969, deadline.

H. ACCEPTANCE OF GIFT BY THE NATIONAL ARCHIVES IN APRIL 1970

Mary Livingston's statement to the Joint Committee staff says the following about the letter she sent to Newman on April 9 :

"By April 24, 1970, I was worried as to how, if this [the letter] was a deed of gift, we could designate the papers that were deeded, especially the smaller series. On April 24, I wrote a memo to Dr. Reed, headed Pending Business, asking how the boxes in question could be marked so as to distinguish them from the rest of the March 27, 1969, shipment. Dr. Reed gave me a written not to mark them in a temporary way (e.g., wth pencil) until we know further of W. H. intentions. With the assistance of Mr. Percy Berry, I marked all of the 1.176 boxes listed in Mr. Newman's letter of March 27, 1970, with the letters U.S., in pencil. I further noted the location of each file on a carbon copy of my letter of April 9, 1970, to Mr. Newman."

In his staff interview, Dr. Reed confirmed that he told Mrs. Livingston to mark "U.S." on the designated boxes on April 24, 1970. Apparently, as discussed below, the deed was picked up from Mr. Morgan's office by a GSA representative after April 10, 1970, and before April 24, 1970.

In their second set of answers to IRS questions (Exhibit I-20), the GSA indicated that the National Archives was notified that a gift had occurred by a memorandum received April 24, 1970, from Edward Morgan including a right of access for Ralph Newman (Exhibit I-43). It also noted that Mrs. Livingston had marked "U.S." on the boxes on that date.

Staff Analysis

This statement implies that by April 24, 1970, the staff at the National Archives that had the responsibility for the Nixon papers believed that the second Nixon gift had been made, as evidenced by their marking "U.S." on the boxes believed to have been given. This action is the first indication by the Archives that they had accepted the second Nixon gift, so that the staff concludes that this acceptance occurred sometime between April 9, 1970, the date of the noncommittal Livingston letter to Newman, and April 24, 1970.

7. Staff Analysis of Facts Relating to the Deed Dated March 27, 1969, for the Second Gift of Papers

The President's counsel claimed that the date of the delivery of the pre-Presidential papers to the National Archives on March 27, 1969, was the date of the second gift of papers of President Nixon, which were claimed as a charitable contribution deduction on his 1969 tax return. Although a deed exists and is dated March 27, 1969, it was not signed by President Nixon but rather by Edward L. Morgan, the Deputy Counsel to the President, and was not delivered to the National Archives until after April 10, 1970. The copy of the deed that was furnished to the National Archives is a duplicate original (that is, a photostat of the original deed with an original signature). Because the deed contains substantial restrictions on access to and use of the papers, the staff believes that delivery of a signed deed was necessary to complete the gift.

The documents relating to the deed consist of the deed itself signed by Edward L. Morgan, including the notarization of the signature, dated April 21, 1969 (the Notary Public was Frank DeMarco, Jr. who was the President's attorney at that time); an affidavit signed by Edward L. Morgan that he had the authority to sign the deed (which was also notarized Frank DeMarco); and Schedule A to the deed which listed the materials conveyed by the chattel deed. These are included in the Appendix as Exhibit I-44.

Questions have been raised whether this deed was ever signed in 1969. The staff questioned this fact when it first learned certain facts relating to the Schedule A that was attached to the deed. It is clear that the Schedule A could not have been prepared until after March 27, 1970, because it was not until then that a list ever existed of exactly what was to be given. It was brought to the attention of the staff that the duplicate original deed at the National Archives had similar photostating marks as the Schedule A, indicating that the deed and the Schedule A were both prepared at the same time. Thus, it became clear to the staff at an early date that the signature of Mr. Morgan could not have been made on this duplicate original prior to March 27,

1970.

Subsequent to this fact being made known to the staff, the State of California conducted an investigation into the propriety of Mr. DeMarco's actions with respect to his notarizations. Additional questions were raised as a result of the depositions which have been made public that were taken of Mr. DeMarco and his secretary, La Ronna Kueny. The following is an analysis of the facts, documents, and any other information furnished to the staff relating to the deed for the second gift of papers dated March 27, 1969. In order to show the contrast in the manner in which the 1968 chattel deed was used, the staff briefly sets forth the preparation and use of the 1968 deed.

A. 1968 CHATTEL DEED

The deed to President-elect Nixon's 1968 gift of papers (Exhibit I-1), which was signed by him, was delivered to a representative of the General Services Administration, Peter S. Iacullo in New York on December 30, 1968. Mr. Iacullo countersigned the deed opposite Mr. Nixon's signature and wrote on the deed next to his signature

"accepted," which he was authorized to do by GSA. The deed imposed the restriction that, except for employees of the National Archives engaged in normal archival work, the President was to control access to his deeded papers. In March and April 1969, several rights of access were prepared pursuant to this 1968 deed; however, the staff has found no such documents dating back to this time relating to any 1969 deed, although that deed had the same restrictions on access.

On March 27, 1969, Anne Halecko, the secretary to Dr. Reed, the Assistant Archivist for Presidential Libraries, sent a copy of the 1968 deed to Edward Morgan in response to his request. This is evidenced by a routing slip signed by Mrs. Halecko that states, "Sent a copy of the Chattel Deed to Mr. Morgan, Room 172, EOB, as requested."

The same day. Mr. Morgan prepared and signed a "Limited Right of Access from Richard Nixon to Ralph Newman." (Exhibit I-45). It noted that it was "Pursuant to Chattel Deed from Richard M. Nixon to the United States of America, dated December 30, 1968." The right of access document said it was to expire on April 16, 1969. It was notarized by John J. Ratchford. A copy of the 1968 deed was attached and the right of access was sent to the National Archives. The White House gave Mr. Newman access "to inspect and examine for the purpose of appraisal" the 1968 gift. The April 16 expiration date suggests that Mr. Newman's appraisal was to be completed by the filing date for the 1968 tax return.

On April 16, 1969, Mr. Morgan signed limited rights of access to the 1968 papers for Rose Mary Woods and Anne Volz Higgins. A memo dated April 17 to Dr. Reed from Mr. Morgan (Exhibit I-46) refers to these rights of access and notes that they apply to the 1968 papers.

On May 1, 1969, Mary Lethbridge, from Dr. Reed's office, wrote a letter to Mr. Morgan (Exhibit I-47). It acknowledged his memo of April 17 and continued as follows:

"Dr. Reed, who will return to this Office on May 5, is looking forward to a visit from Miss Woods and Mrs. Higgins, who have indicated they will inspect the arrangement we have made of the pre-Presidential papers transferred to our custody and advise on the handling of those materials we have not yet removed from file cabinets. I know Dr. Reed and Mr. East, the archivist in charge of the project, hope that you will also find time to inspect the arrangement some day."

Thus, as late as May 1, 1969, Mr. Morgan received a memo from the National Archives telling him that the Archives viewed the undeeded papers as being in their "custody," not as having been given to them. Staff Analysis

The rights of access that were prepared for the Nixon papers in March and April 1969 referred to the papers given in 1968 and were prepared pursuant to the 1968 deed. The staff has found no such documents that pertain to access to the papers that were undeeded at this time, nor has it found any written reference to a 1969 deed in March and April 1969. Furthermore, the letter from Mrs. Lethbridge to Mr. Morgan indicates that Mr. Morgan knew, or had reason to know, that the Archives viewed the papers delivered on March 26 and 27, 1969, as being in courtesy or custodial storage, and did not view any of the papers as being the property of the United States. The staff suggests

that upon receiving this memorandum on May 1, and if he signed a deed on April 21, he probably would have wanted to make a note with someone at the Archives about the gift in view of all his contact with Archives personnel during this period, as noted above.

B. EDWARD MORGAN'S TRIP TO CALIFORNIA, APRIL 1969

Prior to April 1969, President Nixon's legal work had been handled by his former law firm, Mudge, Rose, Guthrie, and Alexander, and his tax work had been done by Vincent Andrews, Inc. In his interview with the staff. Herbert Kalmbach said that in March 1969, H. R. Haldeman told him that the President wanted to buy a house in California and wanted Mr. Kalmbach's law firm, Kalmbach, DeMarco, Knapp, and Chillingworth, to do the legal work involved. Mr. Kalmbach said that in April 1969, John Ehrlichman told him that the President wanted the Kalmbach firm to do his tax work and to help set up the Nixon Foundation. He said that Mr. Ehrlichman told him that Edward Morgan was the man on his staff handling the President's personal finances and that Mr. Kalmbach should work through him. Both Mr. Kalmbach and Mr. DeMarco told the staff that in March and early April 1969, Mr. Kalmbach related this information to Mr. DeMarco, which, Mr. DeMarco says, is the first time he ever heard of Mr. Morgan. Mr. DeMarco said that since he was more of a "practicing lawyer" than Mr. Kalmbach, they agreed that he should do most of the legal work.

DeMarco's Statement to the Staff.-In his written statement to the staff (Exhibit I-10), Mr. DeMarco gave the following account of Mr. Morgan's trip to California in April 1969:

"During the week of April 14-18, 1969, I believe I had another phone conversation with Morgan relating to the President's personal affairs, and including primarily the purchase of the San Clemente property, the formation of The Nixon Foundation to construct a Presidential library and the gift of private papers. It is my recollection that Morgan indicated he would be in Los Angeles from April 19 through the 22nd, and accordingly it was arranged for us to meet in person on the morning of April 21, 1969 for the purpose of inspecting the San Clemente property, discussing The Nixon Foundation and the gift of papers and reviewing documentation concerning these matters. .

"Prior to Morgan's arrival, I prepared a draft of proposed Articles of Incorporation for The Nixon Foundation. I had prepared the draft of the escrow instructions for purchase of the San Clemente property and a draft of a proposed form of chattel deed to cover the gift made on March 27, 1969. On the morning of April 21, 1969, Herb Kalmbach and I met Mr. Morgan in the lobby of the Century Plaza Hotel in Los Angeles. We had an extensive breakfast meeting wherein we reviewed the pending matters, including the gift, the Foundation and the San Clemente property. It is my recollection that Morgan had indicated that he would, or at least I had expected him to, bring with him copies of whatever 'receipts' he received from the Archives upon delivery of the March 27, 1969 papers. During the course of our conversation on April 21, 1969 it was apparent that Morgan had no 'receipts' or other documentation from the Archives. Accordingly, we had no