Back at the White House, Hunt contacts Douglas Caddy and asks him to represent the five burglars. He assumes the men will get bail and then flee the area. Generally Hunt is unconcerned knowing the operation was sanctioned by John Mitchell who has the influence to make the whole thing go away.

Around 9:00am, Bob Woodward, a reporter for the Washington Post, receives a call to come to the office to cover an unusual break in. He arrives to find other Post reporters Carl Bernstein and Alfred Lewis also working on the story.

The Watergate suspects are arraigned at 3:30pm. Asst. US Attorney Earl Silbert requests no bond be granted as the men had given false names and four are of Cuban descent and may flee the country. McCord, states his occupation as “Anti-Communist” but then reveals he’s a former CIA employee. Bob Woodward of the Washington Post is present at the proceedings and learns that Bernard Barker, one of the suspects, told his wife to call Caddy if he didn’t come home.

Liddy tracks down Attorney General Kleindienst and tells him Mitchell says to keep the burglary suspects out of jail. Kleindienst doesn’t believe such an order would come from Mitchell and ignores it. He does not tell anyone of the incident.

John Mitchell, now the Chairmen of the Committee to Re-Elect the President, announces that McCord and the others did not act on behalf of CRP.

Liddy tells Dean that Magruder knew about the burglary attempt. He also fills Dean in on some of the other activities they’ve been involved in. They agree Hunt should probably go into hiding for a while. Liddy says the participants will expect to be taken care of. Afterwards, Liddy meets with Hunt who agrees to leave town.

Following more leads on Hunt, Woodward speaks with the head of the Mullen Company where Hunt also worked and is told that Hunt used to work for the CIA.

Alexander Butterfield, one of the President’s assistants, tells the FBI that Howard Hunt was previously a White House consultant, but hadn’t been used in some time. Agents, however, confirm his status as a longtime CIA agent, and that he had recently worked for Charles Colson in the White House.

Dean fills in Ehrlichman on Gemstone and Mitchell’s involvement. Ehrlichman, in turn, tells Haldeman the whole thing was a CRP operation. Haldeman believes they can contain everything to CRP and avoid anything touching the White House.

Haldeman updates Nixon on the burglary and the two discuss how they are going to raise money for the Cubans. Nixon suggests an anti-Castro campaign could bring in donations.

The Washington Post runs a story with the headline “White House Consultant Linked to Bugging Suspects”

Colson meets with the President and assures him there is nothing to worry about. Nixon suggests the Democrats are also spying and wants speeches written reminding the public about the Pentagon Papers. Both agree not to play up the burglary with a big response. Rather, Nixon suggests stonewalling any references to it.

Haldeman tells Gordon Strachan to ensure their files have nothing incriminating. Strachan begins shredding documents of concern.

Haldeman directs the White House staff to find the most damaging information out there about Nixon and devise a plan to blame the Democrats for all of it.

Ehrlichman calls FBI Director Gray to let him know that Dean is leading the White House investigation and will be his main contact person going forward. Dean tells Gray he’ll be sitting in on all interviews with White House staffers.

The President meets with reports and says “The White House has had no involvement whatever in this particular incident.” The statement only intrigues reporters who begin wondering which incidents the White House was actually involved in.

Dean tells the FBI he was unaware that Howard Hunt had an office in the White House. Privately, Dean is already planning to lay everything on Hunt and Liddy in hopes of containing the investigation. Gray tells Dean to deal with Mark Felt on all matters of the investigation. The White House hopes that the CIA connections could bring up the possibility of using national security as a way to thwart the investigation from going too deep.

Haldeman sums up the Watergate situation for the President, and they discuss how to handle it. Haldeman says the FBI investigation will head into “the problem area” unless Gray gets them under control. He says Mitchell’s suggestion is for them to contact CIA Deputy Director Walters and have him tell Gray to stay the “hell out of this, this, ah business here. We don’t want you to go any further on it.” Haldeman believes Gray will be receptive to the idea and will call in Mark Felt to handle it all. Nixon agrees and offers more strategy saying they should warn Walters that it could open “the whole Bay of Pigs thing again.” (This conversation will later be considered “The Smoking Gun.”)

Gray accuses the agents working the Watergate case of leaking information to the press.

In the address book of burglary suspect Martinez, the FBI finds reference to someone named “George” who turns out to be Gordon Liddy. This leads them to seek more interviews from CRP employees, but CRP demands their lawyers or Dean be present during any interviews.

In a meeting with Ehrlichman and Dean, Gray is given some of the papers in Howard Hunt’s White House safe and they tell him the papers need to never be seen by investigators.

Nixon and Haldeman discuss the need for Mitchell to resign to diminish any further connection to the White House. For months, Nixon has told people that the behavior of Mitchell’s wife, Martha, had been taking a toll on him. Mitchell is summoned and encouraged to resign.