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RESOLUTION

Directing the Committee on Agriculture, the Committee on Banking, Finance and Urban Affairs, the Committee on Government Operations, the Committee on the Judiciary, and the Committee on Small Business to commence hearings on issues within their jurisdiction relating to the Whitewater Development Corporation and related issues.

Whereas allegations have been reported in public concerning the possibility of unethical or illegal conduct in connection with Madison Guaranty Savings and Loan Association (MGS&L), Whitewater Development Corporation, Capital Management Services Inc. (CMS), Ray. E. Friedman & Company (REFCO), and Lasater and Company; and

Whereas Congress has a constitutional obligation to conduct oversight of matters relating to the operations of the Government, including matters related to any governmental investigations which may, from time to time, be undertaken: Now, therefore, be it

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Resolved, That

(1) the Committee on Agriculture, the Committee on Banking, Finance and Urban Affairs, the Committee on Government Operations, the Commit

tee on the Judiciary, and the Committee on Small Business are instructed to commence hearings on is

sues within their jurisdiction relating to Madison Guaranty Savings and Loan Association, Whitewater

Development Corporation, Capital Management

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Services Inc., Ray. E. Friedman & Company (REFCO), and Lasater and Company, and such re

lated issues as may be appropriate not later than

August 15, 1994, and to submit written findings

concerning such matter to the House not later than the sine die adjournment of this Congress;

(2) the respective committees shall work, insofar as it is feasible consistent with the requirements of this resolution, to accommodate the work of Special Counsel Robert B. Fiske, Jr., and shall not

grant immunity under sections 6002 and 6003 of

title 18, United States Code, over the objection of

Special Counsel Robert Fiske to any witness called to testify at these hearings; and

(3) the Speaker and the majority and minority leaders are instructed to meet to determine the appropriate timetable, procedures, and other relevant issues relating to congressional oversight.

•HRES 437 I

The Washington Times

Parties see July start of hearings

By Jerry Seper

THE WASHINGTON TIMES

Democratic and Republican leaders in the House, after meeting with special counsel Robert B. Fiske Jr.. agreed that congressional hearings on the WhitewaterMadison affair could begin by the end of July.

Mr. Fiske, who has opposed any hearings that would interfere with his investigation, said after the meeting that he expects the first phase of his probe to be complete by the "middle to the end of June."

It will be the congressional leadership's decision at that point on "whether to have hearings," he added.

House Speaker Thomas S. Foley in a statement said that, because of staff preparations, hearings could not begin before the end of July and then only if Mr. Fiske finished the first phase by the end of next month.

"I have no problem with waiting and having hearings in July, August and September. If we have done all the preparation for the hearings, then we can act fairly quickly once Fiske says it's OK,"

see PROBE, page A19

WASHINGTON, D.C., FRIDAY, MAY 27, 1994 **

[graphic][merged small]
[merged small][merged small][graphic]

PROBE

From page Al

said House Minority Whip Newt Gingrich of Georgia.

But Rep. John T. Doolittle, whose resolution this week to force Whitewater-Madison hearings was endorsed by 92 GOP colleagues, balked at the agreement.

"This is completely and totally unacceptable," the California Republican said. "There is no reason why these hearings can't get under way immediately, and certainly no rationale why discussions about them have to wait until after the Memorial Day recess."

Mr. Doolittle's comments were in response to statements by Mr. Fiske; Mr. Foley, Washington Democrat; and House Minority Leader Robert H. Michel, Illinois Republican.

"We have made accommodations in my resolution to prevent any interference in the Fiske inquiry, and for the American people to have to wait further for answers to some very serious questions is simply not appropriate," Mr. Doolittle said. "The majority party has dragged its feet and stonewalled on every occasion."

After the meeting on Capitol Hill with the House leadership, Mr. Fiske suggested that limited congressional hearings into the first phase of his probe, which includes the death of Deputy White House Counsel Vincent W. Foster Jr. and improper contacts between the Clinton administration and government regulators, could begin by the end of July.

The Republican leadership agreed. Mr. Michel's spokeswoman, Missi Tessier, said he found no problem with Mr. Fiske's announced timetable and planned to meet with Mr. Foley after the Memorial Day recess to discuss a hearings schedule.

Mr. Doolittle did not mention his Republican colleagues by name but said there is no reason why delays are necessary and no precedent for Mr. Fiske to dictate a hearings schedule.

"We don't want these hearings to be delayed or limited, and there is no reason why that has to be done," he said. "I'm not looking forward to having the hearings put off to August or later and end up with two days because of other press-. ing business.

"Because of its oversight responsibility, the House does not have to honor any request by Mr. Fiske to hold off on the hearings."

Many Republicans in the House and Senate have been angry the past several months over delays by Democrats in scheduling hearings. Both houses passed resolutions in March calling for Whitewater-Madison hearings.

On Wednesday, Sen. Alfonse M. D'Amato, New York Republican, offered a resolution to create a 16member special subcommittee to look into the Whitewater-Madison affair and threatened to attach the measure to "every single bill that comes forward until we have these hearings."

The resolution calls for the appointment of eight Democrats and eight Republicans to a Senate Banking subcommittee to look into

Whitewater-Madison allegations.

Senate Democrats, including Majority Leader George Mitchell of Maine, described the effort as "raw partisan politics."

The first phase of the Fiske inquiry involves a look into the July 20 death of Mr. Foster, whose body was found in a park in Fairfax County; the White House handling of the death, which was ruled a suicide by the U.S. Park Police; and meetings between Clinton administration officials and government regulators looking into a failed Arkansas thrift owned by a longtime Clinton friend and business partner.

Fiske investigators working out of Washington, including homicide expert Roderick C. Lankler, a former assistant district attorney in New York, are conducting the first phase. Investigators working out of Little Rock are looking into financial problems involving Madison Guaranty Savings and Loan Association and Whitewater Development Corp.

The Arkansas phase of the Fiske inquiry is not expected to be completed for several months.

[graphic]

A4 FRIDAY, MAY 27, 1994

...

THE WASHINGTON POST

Phase 1 of Whitewater Probe Near End

Timetable May Clear Way for Summer Congressional Hearings

By Kenneth J. Cooper
and Helen Dewar
Washington Post Staff Writers

Special counsel Robert B. Fiske
Jr. notified House leaders yesterday
that he expects to complete the ini-
tial phase of his Whitewater investi-
gation next month, a timetable that
could clear the way for Congress to
hold the first hearings this summer.

Those hearings would be confined
to questions about the death of
White House deputy counsel Vincent
Foster and the propriety of Wash-
ington meetings between White
House aides and Treasury Depart-
ment officials concerning the failed
Madison Guaranty Savings and Loan
in Arkansas.

Fiske said his inquiry into those
areas would conclude, "barring some
development," in the last two weeks
of June and he would then be able to
tell lawmakers if he objected to
hearings on subjects he is investigat-
ing in Washington.

House Speaker Thomas S. Foley
(D-Wash.) said that the earliest the
House could hold hearings on those
two aspects of the Whitewater in-
vestigation would be in late July or
early August.

A spokesman for Senate Majority Leader George J. Mitchell (D

Maine) said Mitchell anticipates that
Senate hearings could begin "some-
time in July," probably about a
month after Fiske actually com-
pletes the first phase of his probe.

Mitchell was briefed by Foley on
the meeting with Fiske and planned
to lay out his position on timing in a
letter to Minority Leader Robert J.
Dole (R-Kan.), with whom he has
been negotiating over the timetable,
structure and scope of hearings for
about two months.

Fiske asked congressional leaders
in March to delay hearings that
would delve into aspects of his broad
investigation until after his staff has
interviewed relevant witnesses.
House and Senate leaders have indi-
cated a willingness to comply with
Fiske's wishes under nearly identical
resolutions both bodies passed in
March calling for bipartisan agree-
ment to hold the hearings.

In his meeting yesterday with Fo-
ley, House Majority Leader Richard
A. Gephardt (D-Mo.) and House Mi-
nority Leader Robert H. Michel (R-
Ill.), Fiske said he noted that the in-
vestigation into Arkansas-based
matters, including the past invest-
ments of President Clinton and Hilla-
ry Rodham Clinton in the White-
water Development Co., was

incomplete and will not be done any-
time within the next few months.

Foley quoted Fiske as expressing
"worry or concern" that lawmakers
would try to use hearings on Fos-
ter's suicide and the Washington
meetings to explore other matters
still under investigation by his office.

A note of impatience with the
scheduling of House hearings on any
aspect of Fiske's investigation came
from House Minority Whip Newt
Gingrich (R-Ga.), who warned that
hearings might extend into the fall
campaign season-an uncomfortable
prospect for Democrats-unless
committee investigators get the go-
ahead to proceed with advance re-
search right away.

In the House and Senate, the
structure of Whitewater hearings
remains undecided and subject to
partisan dispute.

Foley said "it might be better to
have one committee do whatever
hearings" and identified the Banking,
Urban Affairs and Finance Commit-
tee as "the most likely committee."
Rep. James A. Leach (R-Iowa), who
has pressed for disclosure of govern-
ment documents related to Madison
and Whitewater, is the panel's top
Republican.

Gingrich named four committees

ROBERT B. FISKE JR.
... notified House leadership

that could claim jurisdiction over
some part of the Whitewater investi-
gation and said that "the only alter-
native would be a select committee,"
an alternative that Foley has consis-
tently sought to discourage.

In the Senate, Republicans served
notice Thursday that they will start
amending bills to force hearings if
Mitchell has not reached agreement
with Dole on plans for the hearings
by June 7, when Congress returns
from its Memorial Day recess.

Republican sources said GOP sen-
ators dropped plans to start offering
amendments before the recess when
Dole assured them that he was mak-
ing progress in his talks with Mitch-
ell and believed agreement was

near.

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