Liddy presents a less expensive version of Gemstone and Mitchell agrees to think about it. Dean suggests this conversation should not be taking place in the office of the attorney general, and tells Liddy the two of them should not speak about this matter again. Dean tells Haldeman the entire operation is unnecessarily risky.

The Manchester Union Leader publishes a forged letter implying that presidential candidate Edmund Muskie held prejudicial beliefs against Americans of French Canadian descent. It is later referred to as “The Canuck letter” and leads to the implosion of Muskie’s presidential run.

Columnist Jack Anderson publishes a story that comes to be known as the “Dita Beard memo” story. It connects campaign donations to a favorable anti-trust settlement regarding ITT. The Nixon cabinet member in charge of anti-trust cases resigned not long after the settlement was made in July 1971 and was instantly made a judge thus drawing the attention of many including Senator Ted Kennedy and columnist Jack Anderson.

Mardian asks Mark Felt to find Dita Beard and serve a subpoena.

Colson sends Hunt to Denver to visit Dita Beard in the hospital. Hunt poses as a friend of the ITT CEO (and wears a wig that is later found in the Watergate after the break in). He tells her that she will not be fired from ITT. She eventually tells him it must all have been a misunderstanding.

Nixon, Colson, and Haldeman discuss ways they can get revenge on Jack Anderson and Hume and discredit them, possibly by alleging they are homosexuals.

Nixon brings together several agricultural leaders to discuss raising the price of milk supports paid to farmers. The campaign had been asking for various donations during much of Nixon’s first term. Treasury Secretary John Connelly recommends they help the campaign, and they all buy tickets to the kick off event happening the next night.

Liddy and Hunt meet with a retired CIA physician and speak about how an accident may happen upon someone they are investigating or if there is a way he could be discredited.

Dita Beard testifies from her hospital bed that the memo was forged. As she is cross examined, her lawyer claims she’s having a heart attack. She later checks out of the hospital and disappears.

The President of International Controls Corporation shows up at the office of Maurice Stans who is running the finances for the Committee to Re-Elect the President with an anonymous donation of $200,000 in hopes of helping them avoid future troubles with the SEC.

Jack Anderson receives a tip from a private investigator that plans are being made to tap telephones at the Democratic National Committee, but he never follows up.

J Edgar Hoover dies and is replaced by L Patrick Gray, an outsider, over Mark Felt who has been effectively running the FBI as the No. 3 man.

Hunt and Liddy along with their team, Bernard Barker, Frank Sturgis, Felipe De Diego, Virgilio Gonzalez, and Reinaldo Pico check in as guests to the Watergate Hotel. That evening, the staff of the Democratic National Committee (DNC) inside the Watergate work late and the alarms kick on stranding Hunt and Gonzalez in a closet overnight.

After two failed attempts, Barker and the Cubans are able to access the Democratic National Headquarters inside the Watergate hotel. They make copies of photos and install listening devices.

Kleindienst is finally confirmed by the Senate as the next Attorney General.

Magruder tells Liddy to go back to the DNC and photograph every document they can. Baldwin is able to get a guided tour of the office and draws the layout for the burglars to follow.

After dinner, McCord tapes over the lock of the garage entrance to the Watergate building. When he checks later, the tape has been removed so he replaces it. This causes Hunt some concern, but Liddy says they should push forward with their plans.