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committees with funds borrowed from TAPE. 233 On May 7, SPACE gave
$5,000 to a "Kickoff '72 Dinner."

On May 18, John Dean, H. R. Haldeman and Gordon Strachan met to
discuss campaign financing matters. The notes of that meeting (jotted down
by Strachan) 234 indicate that top Nixon aides knew in advance that large
contributions would be forthcoming from the dairy industry. By then, only
$85,000 had been contributed by TAPE, SPACE and ADEPT, but Dean and
Haldeman were already discussing the importance of keeping the "milk money"
in separate accounts, and to "hide" as much of it as possible:

2. Dean and H[aldeman] agree that the expenditure [of
C.R.P.] should be kept low so that if the decision to report
is made the facts don't look to [sic] bad. Large
expenditures, and the activities with the milk money,
would remain non-reporting.

* * * * *

4. ***
Dean -- 'What about the milk money? Our current thinking
is to keep it totally separate and not even use the
same bank."

H -- "Agree."

Dean -- "What should the milk money be used for?"

H -- "The Citizens Committee can submit a budget at the
appropriate time and in the meantime, the money can sit
in the bank."

Dean -- "Salaries at the Citizens Committee are currently
being paid through a Kalmbach Trustee Account, so it is
surplus money."

* * * * *
________________________

233 Deposition of William Delano, Vice President of Mid Am at 16.

234 Exh. No. 34-26, Hearing before the Select Committee on Presidential Campaign
Activities, 93d Cong., 1st Sess., June 25-26, 1973, 1226.

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