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Pointedly praising John Dean's credibility, Strachan said that before the Watergate break-in he had passed along to Haldeman a memo noting John Mitchell's approval of "a sophisticated political intelligence-gathering system." It called for a budget of $300,000. Strachan also prepared "a talking paper" on this plan for a meeting between Haldeman and Mitchell on April 4. Haldeman had indicated that he had read both papers, Strachan said.
Three days after the Watergate arrests, Strachan testified, Haldeman had ordered him to "be sure our files are clean." He went through Haldeman's files, took out the two papers and several others and shredded them. Later he told both Dean and Haldeman that he had done this—"and Haldeman did not disapprove." Since no other intelligence plan was under consideration at the time, that would make Haldeman aware in advance of at least the broad outlines of Liddy's operation—and a party to the destruction of evidence at the beginning of the cover-up and the now so fateful Watergate scandal.