the new YORK TIMES, WEDNESDAY, AUGUST 18 1976 .. I U £j I p1 n„,rihes FsTS^es, Sayinl nTG>y‘ Appr^l ZxH-4. 7 „ h\K flttomev and did not recall Mr. Gray’s ».• — ma that the practice had re- Stephen H. . u.vlne made any statement like Cpiitinued From Page Col. 3 dence in sensitive intelligence inv^gations. Mr. Felt initially recalled that Mrl Gray, who took over the burden after the deato of J. Edgar Hoover in May 19p, had told a Washington conference of tiie heads of the bureau s 59‘ficld offices that approve these things ^“t ti^ed the agents to ^ sure you get bureau approval Gray. who now lives in Stonmgton, Conn., denied “condoning or Told of Mr. Gray’s denial, Mr. Felt conceded that his «collec- tion of the drcumstances of Grays* approval was h^. and said that in any even^« authorization h^.. cated on the belief that that vros what he pdr. Gray] want- One of the burglaries. Mr. Felt said, was earned out agents searching formation Center in Dallas in the fall of 1972 for dues to the operation of Palestinian ter- rorists in the Umted . The second, he tended to uncover leads to toe whereabouts of members of the Weather Underpound, a gue^ rilla group that has taken credit for several bontoings in this country. Justice Dept Inquiry A number of burglaries of friends and associates of toe Weather out by F.B.I. agents in the York city area in 1972 and 1973 and are now the ^9fus an iuvestigaUon by I^partment s dvd rights dlvt “T Stanley Pottinger. who heads that division, was In York today for the empaneling of a Federal grand that will begin hearing evidence in the .ease next week. !b. Pottlngeris office, winch U trrinK to trace knowledge and approval of the ille gal bur* A$$odiM Press W. Mark Felt glaries up through Mr. Gray’s chain of command, is under- stood to be investigating, in ad- dition to Mr. Felt’s assertions, Mr Gray’s attendance at a sec- ond meeting at toe b^aujs Quantico, Va.. training facility in toe summerof 1972. According to F.B.L sources present on that occasion, a number of bureau agents from around the countiy participated in a discussion of toe hunt for toe Weather fugitives that in- cluded mention of the use of burglaries as an i«vesUgaUve technique. Mr. Gray and other top bu- reau executives, including Ed- ward S. Miller, then the head of its intelligence division, at- tended the conference, and Jus tlce Department lawyers have received some indications timt they were present during the discussion. Resumption of Biuglarics The bureau’s use of burglaries to gather evidence was be- lieved. until recently, to have been halted by Mr. Hoover In 1966. Three months ago, it was disclosed that I|/lr. Pottinger had obtained documents snow- ing that the practice had re sumed in New Work City afterl Mr. Hoover’s death on May 2, 1972. Since then, some sources here have chararter-, [ized the New Work City offiM as a “renegade” o"® without the knowledge or *P-, proval of bureau offldds ml Wwngton, an is said to have Work agents and strengthened their determination _ to show that they were actmg under ^^Mr’ pottinger’s investigationl Is known to be °?i the assumption that break-ins, none of which wot accompanied by ww rante, constitate a the Federal civil ^ts stotnws in cases where the targets hM “o foreign inttlUgence connec- ^°The burglary of fte fonnation Jor is not imderstMd to ject of the Justice Depart®e"“ inquiry. The New York Times liTi^rted that Mr. Gray a^ proved that operation, mid he Eas reportedly told friends t^, he beUeved it to 1« legal cause a foreign espionage mat- ter was involved. Altoough Mr. Felt ^^ok re- sponsibiUty today for having authorized that said in the interview that he ^Ueved he had later advls^ Mr. Gray of his action In that case and also in _ [Stephen H. Sachs, his attorney, that he had never approved “surreptitious entries In the in- vestigations of Weathermen fugutives.” , According to records pre- pared by the Watergate special ^secutoris office, ^hidi in- vestigated toe possibiUg that Mr. Gray had ^rjnred himself during his 1973 continw^n hearings, Mr. Gray did a^d a meeting of the neads of to bureau’s field office in May 10, 1972, two weeks after he re- pUced Mr. Hoover. That, he said, was the only such meeting he attended m Washington, and he has told ‘associates that he does not re - Icedl any discussions of surrepu- tious entries. Charies W. Bates, now the head of the F.B.I.’s San Francis- co office. said in a telephone interview today that he was present at toe May 18 meeting and did not recall Mr. Gra^s having made any statement like that described by Mr. Felt. Mr. Felt said, however, that the meeting he recollected 4n a “hazy” way had taken Pjace later in the summer of 1972— on Aug. 29, he believed. But according to records or Mr. Gra/s activities, that was to penod during v^ch to conference on Wcatocr fugi- tives was taking place at Quan- tico and in Washington. In a related development, Eu- gene V. Walsh, who had been assistant director in .ch^ge of toe bureau’s administrative di- vision, retired from toe bureau ?^^e^^admlnistrative division has been the subject of a sepa- rate investigation by the I^- partment of Justice, but no m- dication was forthcoming that Mr. Walsh’s departure bore any relationshhip to that inquiry, 1150 U1 ;^th Jiis approval of the Weatb- er fugitive burglary. No Previous Comment But he said that Mr. Gray, who was immer^ F.B.I.’s Watergate investigMon and, later, in Ws own »bo^;je confirmation hearings, didn t even know what was being said to him, he was so busy. Mr Gray, who left the bureau in aM 1973 after his nomtaa- tion as Its director was wtto- drawn by president until now not commented pub- Ucly on his year-long tenure. But he said today throuj^ V