All the President's Men Manipulation Quotes

Markham's response is typical of the weird denials the reporters will hear over the course of the film.

Markham is based on real-life attorney Douglas Caddy, who was found in contempt of court when he refused to testify against his clients, even though attorney-client privilege grants him the right to do so. Caddy believes he was targeted because he was a closeted homosexual in a harshly homophobic environment. (Source)

Remember Markham the lawyer saying "I'm not here?" This denial is just as plausible, because not five seconds prior the librarian was sure she had retrieved material for Mr. Hunt. The White House isn't even trying to make their denials appear valid. They think they'll get away with it.