detailed list of the subject matter of the gift to attach to the form of the deed. During the course of the morning, I wrote out in longhand what I suggested we use as a Schedule 'A' to the chattel deed so as to at least block out the general value and general description of the papers and providing that a more detailed list would be supplied after the appraisal. In the course of that conversation Morgan indicated to me that the appraiser, as part of his duties would prepare a detailed schedule which could be used as the Schedule describing the subject matter of the gift. It was our feeling at that time that there would probably not be much delay in obtaining the detailed description.

"Ed Morgan, Herb Kalmbach and I spent the entire day together on April 21, 1969. We proceeded from the Century Plaza Hotel, Los Angeles, by car to San Clemente where we inspected the property and later we paid a visit to our law firm's Newport Beach office. It is my recollection that sometime during the day when we were reviewing documentation, Morgan signed the form of the chattel deed which I had prepared, although we had no itemized description of the papers. It is my belief that the typewritten description of the materials as set forth in the first Schedule 'A' was prepared by me on a typewriter at the Newport Beach office. (A copy has been furnished you previously.)

"The escrow instructions, the draft of Articles of Incorporation of The Nixon Foundation and the first form of chattel deed to which I had referred to above, were typed on the same typewriter in our Los Angeles office. I had intended to make additional xerox copies of that chattel deed prior to execution by Mr. Morgan on April 21, 1969 after I had viewed what I had been referring to as the "receipts" received from the Archives. When I discovered he did not have such 'receints' and we decided upon the summary form of Schedule 'A' referred to above, I did not make additional xerox copies, but instead chose to wait until the data for the final Schedule "A" was received.”

Thus, according to Mr. DeMarco, he prepared a deed for a 1969 gift of papers in April 1969, and Edward Morgan signed it for President Nixon on April 21, 1969. In his interview with the staff, Mr. DeMarco said that he and Mr. Morgan discussed the question of whether it was apporiate for Mr. Morgan to sign documents for the President. Mr. DeMarco said that Mr. Morgan told him that Morgan had such authority and showed him the rights of access to the 1968 papers that he had signed, as well as papers he had signed relating to the sale of the President's Fisher's Island stock. Mr. DeMarco said that he took Morgan's word for this and, in any case, did not think the deed to be very important since its purpose was only to "memorialize" a gift that had already occurred on March 27, 1969.

Mr. DeMarco's assertion that he prepared both the deed for Mr. Morgan's signature and the affidavit that Mr. Morgan had the authority to sign the deed seems questionable in the light of his statement that he did not know that Mr. Morgan had the authority to sign until their April 21, 1969, meeting. It is also unclear why Mr. DeMarco wanted receipts from the Archives, since in the case of the 1968 deed, the schedule was clearly prepared by a privately-hired appraiser, and Mr. DeMarco had a copy of the 1968 deed when he prepared the 1969

deed. Finally, Mr. DeMarco's belief that the gift occurred on March 27, 1969, seems somewhat inconsistent with his own notes of his phone conversation with Mr. Newman (Exhibit I-23) in which he refers to segregation of the material (presumably to be given) by Mr. Newman. DeMarco says that he does not now have the deed or any drafts of the deed that, he says, he prepared and Morgan signed in April 1969. He has furnished the staff with a copy of the Schedule A he says he prepared on April 21, 1969 (Exhibit I-12).

DeMarco Staff Interview.-In his interview with the staff, which occurred before he prepared his written statement, Mr. DeMarco's account of the events of April 21, 1969, was somewhat different than in the written statement. In that interview, Mr. DeMarco said that he had prepared a rough draft of the deed in anticipation of Mr. Morgan's visit. This draft, he said, included crossed-out words and was clearly not in shape to be executed. Mr. DeMarco said that his plan was that when Mr. Morgan brought the receipts for the papers from the Archives, they could prepare a final version of the deed, which Mr. Morgan could then sign. Mr. DeMarco stated that Mr. Morgan's failure to bring any such receipts caused him to abandon his original plan of signing the deed that day.

DeMarco California Deposition. In a sworn statement before the Secretary of State of the State of California on January 30, 1974, Mr. DeMarco related essentially the same facts contained in his written statement to the Joint Committee staff.

Morgan Statement to White House.-On August 14, 1973, Mr. Morgan wrote a memorandum (Exhibit I-9) to Douglas Parker of the White House staff setting forth his basic recollection of the facts pertaining to the President's gifts of papers. The narrative of his California meeting with Messrs. Kalmbach and DeMarco is as follows:

"On Monday, April 21, I met Mr. Kalmbach and Mr. DeMarco at the Century Plaza, where I was staying, and drove to the Newport Beach area. I recall that we drove to San Clemente and looked at the property which is now the President's residence there. I recall spending some time at Mr. Kalmbach's law office discussing and working on all of the matters on which I was in California. This may have even included the question of the historical site status for Yorba Linda.

"There is absolutely no question in my mind that I signed the deed of gift for the President at that time. The thing that I do not remember is whether or not there was any particular schedule attached to the deed at that time, and if so, its contents.

"Since I had not personally supervised the transfer or the inventory of the materials subject to the gift, the schedule would have really meant very little to me anyway."

Morgan Staff Interview.-In his interview with the staff, Mr. Morgan related essentially the same basic facts as in his statement to the White House. He said he was "98 percent certain" that he signed the deed on April 21, 1969. He said he remembers Mr. DeMarco's telling him that the deed was "memorializing" a gift that had already been made.

Mr. Morgan said that no one at the White House gave him specific authority to sign the deed but that Mr. DeMarco told him it was appropriate.

Kalmbach Staff Interview.-In his interview with the staff, Herbert Kalmbach stated that he was present during most, but not all, of the April 21, 1969, meeting with Messrs. Morgan and DeMarco. He does not recall any discussion of a deed, nor does he recall Mr. DeMarco's typing anything. He said he does recall Mr. Morgan's signing something but does not remember what he signed. Mr. Kalmbach said that he remembers no discussion of the President's papers at the meeting and does not believe he even knew of a gift at that time.

Kalmbach California Deposition.-In a sworn statement before the California Secretary of State on February 21, 1974, Mr. Kalmbach has related essentially the same facts given to the Joint Committee staff in his interview.

Ehrlichman Staff Interview.-John Ehrlichman told the staff that he gave Mr. Morgan no specific guidelines on what to sign and that Mr. Morgan was instructed to burden him and the President as little as possible with the details of the President's personal finances. Mr. Ehrlichman said that, as far as he was concerned, Mr. Morgan had the authority to sign the deed even though he received no specific instructions and had no power of attorney. Mr. Ehrlichman says he recalls no discussion of a deed in March or April 1969.

Receipt of 1968 Deed by DeMarco

Mr. DeMarco told the staff that he prepared the deed for the second gift of papers with the aid of the 1968 deed. The two deeds are identical in many respects, the main differences being that the 1969 deed was prepared for Mr. Morgan's signature, not President Nixon's, and did not contain a line for signature by the General Services Administration. It is clear, then, that Mr. DeMarco could not have prepared the 1969 deed until after he received a copy of the 1968 deed. In his written statement to the staff, Mr. DeMarco said:

"Prior to his [Morgan's] arrival, I received either from Mr. Morgan or from Mr. Kalmbach copies of the 1968 gift documents and the access rights documents which had been used in connection with such a gift."

In their interviews with the staff neither Mr. Morgan nor Mr. Kalmbach recall sending the 1968 deed to Mr. DeMarco in April 1969. The staff has questioned all of the other individuals whom it knows had copies of the 1968 deed before April 1969, including Richard Ritzel, Martin Feinstein, and the people at the National Archives, in an effort to find out if any of them recall sending a copy to Mr. DeMarco or Mr. Kalmbach at that time. The staff has also questioned Mr. Ehrlichman, who may have acted as a conduit in sending the 1968 deed to Mr. DeMarco. The staff has not been able to determine who, if anyone, sent Mr. DeMarco the 1968 deed in April 1969.

Staff Analysis

For purposes of determining the validity of tax deductions, the burden of proof is on the taxpayer, not the Government. The only evidence that Mr. DeMarco prepared and Mr. Morgan signed a deed of gift for the second gift of papers on April 21, 1969, is the statements of Messrs. DeMarco and Morgan to that effect. The staff has received only one written document purporting to relate or even refer to this deed-the draft of the Schedule A that Mr. DeMarco said he prepared on April 21, 1969. The deed itself, if it existed, was, appar

ently, discarded or lost. Furthermore, Herbert Kalmbach, who participated in most of the meeting with Messrs. Morgan and DeMarco, does not recall having heard any discussion of the gift or the deed; and John Ehrlichman, Mr. Morgan's boss, does not recall discussing the deed with him. Finally, the staff has found no evidence to corroborate Mr. DeMarco's statement that he had a copy of the 1968 deed in April 1969.

C. 1969 ARCHIVES CORRESPONDENCE REGARDING A 1969 DEED

The staff has requested that both the White House and the National Archives furnish it with any letters or memoranda written in 1969 that relate to a deed for the second gift for Nixon papers. The staff has received no letters or memos written in 1969 that contain any reference to a 1969 deed. As discussed in Section A above, material written by the White House about the 1968 gift made frequent references to the 1968 deed.

Edward Morgan wrote a memo to Dr. Reed on September 12, 1969 (Exhibit I-48). The memo mentions the papers, but contains no reference to a 1969 deed or to a deeded portion of the papers.

D. PREPARATION AND SIGNING OF THE SECOND DEED OF GIFT, APRIL 1970 DeMarco's Written Statement.--Mr. DeMarco's statement contains the following description of the preparation and signing of the deed of gift:

"On April 7, 1970 I dictated to my secretary the summary schedule for attachment to the tax return. It was at this time, upon examining the summary schedule and examining the Schedule 'A' which I had instructed my secretary to prepare on March 27, 1970, I noticed that the typewriting on these documents and the color and texture of the paper were so substantially different from the type and the paper used on the draft deed prepared in April of 1969, that I instructed her to retype the entire chattel deed on the new typewriter which we had been using since mid-1969. (The ribbon copy of the retyped chattel deed and the draft of The Richard Nixon Foundation Articles of Incorporation, typed in April 1969, are available for comparison as to type and paper and will be submitted to you for examination.) After it had been retyped in its entirety, I caused two xerox copies to be made, and it was my plan to have the new ribbon copy and two xerox copies re-executed by Mr. Morgan when I saw him in Washington.

"On April 8, 1970 I received in the morning mail the final formal written appraisal of Mr. Newman which was date stamped April 8, 1970. I caused several xerox copies of the original appraisal to be made. I then proceeded to the offices of Arthur Blech, showed him the original appraisal and the various xerox copies I had made. We then assembled the final tax return and attached xerox copies of the final formal Newman appraisal and xerox copies of the summary sheet setting forth the basic points of the gift. We then assembled the final tax return for execution.

"On April 9, 1970 I traveled to Washington, D.C. On April 10, 1970 I met with Edward L. Morgan at his office at the Executive

Office Building at about 10:00 a.m. I presented to Mr. Morgan the original ribbon copy and two xerox copies of the retyped chattel deed for his re-execution. I do not have any distinct recollection as to whether I had affixed my signature to the copies and the notary seal prior to leaving Los Angeles, or whether I affixed same in Mr. Morgan's office. However, I feel that since my signature appears to have been signed with a felt tip pen, and since I normally do not carry a felt tip pen on my person, I could have signed the documents in Los Angeles before I left. After completion of the execution by him, I think I left him at least one copy, and I retained the ribbon copy in my file. I do not recall that we had any substantial discussion at the time of the re-execution, except that we concurred in the proposition that it was a restatement of that which we had done in California in April of 1969 but with the more itemized and detailed appraisal attached and that it was a good idea to clean up the documentation. I expressed my concern that the original deed not be used because of the difference in type on the typewriters and different quality and color of paper."

Thus, Mr. DeMarco acknowledges that the final copies of the deed for the second gift of papers were signed by Edward Morgan on April 10, 1970. He gave the same story in his sworn statement in California.

DeMarco Staff Interview.-Mr. DeMarco notarized the deed signed by Mr. Morgan on April 10, 1970, as of the date April 21, 1969. (The deed itself was dated March 27, 1969.) In his staff interview, Mr. DeMarco could not recall whether he notarized the deed just before or just after Mr. Morgan signed it.

DeMarco California Deposition.-In his sworn statement in California, Mr. DeMarco told essentially the same story he told in his written statement to the staff.

Kueny California Deposition.-In a sworn statement before the California Secretary of State, Mr. DeMarco's secretary, La Ronna Kueny, stated that she typed at least two copies of the deed to the second gift, the first one before April 21, 1969, and the second one either in late 1969 or early 1970. She said that the second deed was similar to the first, except that the first included no Schedule A and that they were typed on different typewriters. In both cases, she said she typed a notary acknowledgement and an affidavit that Mr. Morgan had the authority to sign. She said she cannot remember whether she typed the second deed from a draft with strikeovers or from a clean manuscript. Mrs. Kueny also asserted that she typed the original deed before Mr. Morgan arrived in Los Angeles on April 21, 1969. Exhibit I-52 is Mrs. Kueny's sworn statement to the Internal Revenue Service, which was given to the staff by Mr. DeMarco.

Morgan Staff Interview. Mr. Morgan acknowledges that the signature on the deed that Mr. DeMarco now says was signed on April 10, 1970, is his handwriting. However, in his interview, he said he did not recall signing any deed a second time, nor did he recall signing anything on April 10, 1970. He said, however, that he cannot deny having signed it then a second time. The staff understands that Mr. Morgan now asserts that he remembers signing the deed a second time. Of course, if Mr. DeMarco's story given in his first staff interview is