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The Washington Times

WASHINGTON, D.C., THURSDAY, MAY 26, 1994 e

GOP senators
harden stand
on Whitewater

D'Amato, Dole
insist on special
hearings panel

By Jerry Seper

THE WASHINGTON TIMES

Republican senators yesterday demanded creation of a 16-member bipartisan subcommittee to investigate the Whitewater-Madison affair, accusing Democrats of "foot-dragging" in an effort to protect the Clinton administration from congressional scrutiny.

The proposal, offered during a floor speech by Sen. Alfonse M. D'Amato, would establish a special subcommittee of the Senate Banking Committee-eight Democrats and eight Republicans- to "investigate and hold hearings" on all pending Whitewater-Madison is

sues.

Mr. D'Amato, New York Republican and ranking minority member on the Banking Committee, said in a 20-page resolution that Republicans no longer are willing to wait for the Senate Democratic leadership to establish jurisdiction for the hearings or to set a timetable for them to begin.

"When we return [from the Memorial Day recess], if there is no agreement, we are prepared to offer legislation on every single bill that comes forward- until we have these hearings," Mr. D'Amato said.

The Memorial Day recess is

scheduled to begin tonight and
continue through June 8.

Senate Majority Leader George
Mitchell responded by saying he
would "do all I can to see that Con-
gress meets its responsibilites" in
supporting an earlier Senate res-
olution-passed 98-0 on March 17
-calling for Whitewater-Madison
hearings. But he made no prom-
ises when they would be held or
under what conditions.

"The real motive behind this request today is... raw partisan politics," said Mr. Mitchell, Maine Democrat. "It's a chance to take a few more shots at the president, to score a few more political points.

"We will have hearings; we will comply," he said. "But we will do it in a responsible way and not in a political circus."

Mr. Mitchell noted that negotiations were continuing between his office and that of Senate Minority Leader Bob Dole of Kansas on how to structure the pending hearings, adding that the discussions were "moving ahead."

He said, however, he would not schedule hearings if there was any possibility they could interfere with the Whitewater Madison investigation now being conducted by Special Counsel Robert B. Fiske Jr., who is scheduled to meet today with the House leadership to discuss the status of his inquiry.

"We will have a better idea about this when we know the special counsel's timetable," Mr. Mitchell said.

Mr. Dole, during a spirited debate on the Senate floor, said he

see HEARINGS, page A12

The Washington Times

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did not believe Whitewater Madi-
son hearings would interfere with
the Fiske inquiry but said Con-
gress was shirking its oversight
responsibilities by failing to get
them under way.

"I understand the unique de-
mands of Mr. Fiske's job, but Mr.
Fiske- and those of us in the Sen-
ate- should also understand that
Congress has its own job to do as
well," Mr. Dole said.

"It's one thing to be deferential,
and it's something quite different
when deference is used as an ex-
cuse to shirk our own constitution-
ally mandated oversight obliga-
tions," he said.

Mr. D'Amato said the "time has
come" for the Senate to begin a
nonpartisan investigation into a
possible "abuse of power" in the
Whitewater Madison controversy.
"The foot-dragging has got to
stop," he said.

Eric Ueland, spokesman for the
Senate Republican Policy Com-
mittee, said Republicans had
agreed last week that if Mr. Mitch-
ell and Mr. Dole did not reach an
agreement on a timetable for
hearings and on crucial jurisdic-
tional questions by last Sunday,
Republicans would put their own
timetable and requirements for
committee jurisdiction into an
amendment.

He said GOP members planned
to start attaching the amendment
to each bill two days ago, but let the

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tion into the July 20 death of White
House Deputy Counsel Vincent W.
Foster Jr., a longtime friend of the
Clintons.

• The operation and under-
writing practices of the Arkansas
Development Finance Authority,
which approved millions in fees
and contracts to friends of the
Clintons.

At one point during the floor
debate, Sen. Wendell H. Ford, Ken-
tucky Democrat, angrily chal-
lenged Republicans in the mis-
taken belief that GOP senators had
mentioned his hometown.

"No one is lining up in my front
yard asking about Whitewater," he
said.

•Ralph Z. Hallow contributed to this report.

PAGE A12/THURSDAY, MAY 26, 1994 ★★

The Washington Times

GOP moves

WASHINGTON, D.C., WEDNESDAY, MAY 25, 1994 *

to force hearings

Whitewater delays anger Republicans

By Ralph Z. Hallow and Jerry Seper

THE WASHINGTON TIMES

Republicans showed their increasing restiveness over what they regard as Democratic efforts to delay public hearings on the Whitewater-Madison affair by moving in both houses of Congress yesterday to end the standoff.

Citing "contradictory" White House accounts of President Clinton's involvement in the affair, House Republicans introduced a resolution calling on five committees to begin hearings on the matter by Aug. 15.

believe the patience of the American people is nearing an end," Rep. John T Doolittle, California Republican, said during a news conference. "Delaying these hearings any further would be unfair to the American people and unfair to the president and his associates."

In the Senate, a Republican-set deadline for action by Senate Majority Leader George Mitchell on a timetable and jurisdictional agreements was broken for a second day. Senate Minority Leader Bob Dole of Kansas told reporters his side is prepared to start introducing floor amendments to pressure Mr. Mitchell if an agreement is not reached with the Maine Democrat today.

The amendments, reflecting GOP frustration that the Senate is about to take its Memorial Day recess without setting a schedule for hearings, would be attached to any bill on the floor and would outline GOP proposals for hearings.

In a last-ditch effort to end the standoff through compromise, Mr. Dole yesterday gave Mr. Mitchell a written proposal that sources said calls for Whitewater-Madison hearings to be held by a "select committee" with a special twist.

The Senate Whitewater committee would be based on the Banking Committee. Mr. Mitchell would appoint to the special committee five Democrats from the Banking Committee, and Mr. Dole would appoint five Republicans from that committee.

Mr. Mitchell and Mr. Dole each would select three additional members of their parties from other committees, giving the select committee eight Democrats and eight Republicans.

Mr. Dole originally called for a select committee of the kind made famous during Watergate, but Mr. Mitchell said he wanted hearings held by one regular committee see GOP, page A10

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House Republicans John T. Doolittle (left). Newt Gingrich (center) and Dana Rohrabacher relax before a news conference demanding hearings

GOP

From page Al

with powers limited to its normal jurisdiction.

Republicans objected for a variety of reasons. One was that first lady Hillary Rodham Clinton's commodities trading falls under the jurisdiction of the Agricultural Committee, and only it could subpoena records from the Chicago Mercantile Exchange. Under Mr. Dole's proposal, the select committee could subpoena her records.

Mr. Doolittle and 92 other Republicans signed the House resolution, which calls on the Agriculture, Banking, Government Oper ations, Judiciary and Small Business committees to begin hearings by Aug. 15. Democrats head all the House committees.

The resolution, which cites a "constitutional obligation" by House members to look into the Whitewater-Madison affair, follows by a week calls by the House Republican leadership for the hearings to begin.

House Minority Leader Robert H. Michel, noting that a "considerable amount of time" had passed since a March 22 resolution calling for Whitewater-Madison hearings, asked House Speaker Thomas S. Foley last Wednesday to schedule planning sessions on beginning the hearings.

"According to the resolution, we are to meet to determine the appropriate timetable, procedures and forum for appropriate congressional oversight, including hearings," Mr. Michel, Illinois Re publican, said in a letter. "As you know, no such meeting has taken place, despite my requests that one be held as soon as possible."

Mr. Foley, Washington Democrat, said at the time that the hearings would be "considered" when special counsel Robert B. Fiske Jr. indicated that the first phase of his Whitewater Madison investigation had been completed. The speaker said the hearings would begin "when we are ready."

"We have a resolution that calls for (hearings) when it is also consistent with Mr. Fiske's investigation," he said. "That is the condi

tion that the House resolution imposed upon the hearings, so when Mr. Fiske indicates that his investigation is over, or that phase, we will consider the scheduling of hearings."

Whitewater-Madison hearings were tentatively approved by the House and Senate. They were to begin after the leadership determined they would not jeopardize the Fiske inquiry.

According to the House resolution offered yesterday, the hearings would target "alleged unethical or illegal conduct" involving:

Whitewater Development

Corp., a northern Arkansas real estate venture jointly owned by Mr. Clinton, James B. McDougal and their wives. The $203,000 partnership was created in August 1978 and continued through November 1992.

Madison Guaranty Savings and Loan Association, an Arkansas thrift owned by Mr. McDougal that failed in 1989 at a cost to taxpayers of $50 million.

Capital-Management Services Inc., a Small Business Administration-licensed lending agency owned by former Judge David L. Hale, who has accused Mr. Clinton and Mr. McDougal of pressuring him for an illegal $300,000 SBA-backed loan for Susan McDougal.

Lasater & Co. Inc., a Little Rock investment firm owned by Dan R. Lasater, a longtime Clinton supporter whose company was awarded millions of dollars in state-approved, tax-exempt bonds while he was under investigation for cocaine distribution. He later was convicted and sentenced to 30 months in prison.

Ray E. Friedman & Co. (Refco), a commodity brokerage firm with offices in Springdale, Ark., where Mrs. Clinton parlayed

$1,000 investment in cattle futures in 1978 into a $100,000 profit in 10

months.

Whitewater, Madison, Capital

Management. Lasater and Refco are part of the Fiske investigation, which has a team of nearly a dozen prosecutors and 25 FBI agents working out of offices in Little

Rock and Washington.

Mr. Doolittle said the resolution introduced yesterday was "necessary to bring a definitive resolution to this scandal, which has crippled the president's and Congress' ability to govern effectively"

"Two months have elapsed since the House passed a weak Whitewater resolution, which did not require hearings but only recommended that Democrat and Republican leaders should meet to set a timetable for hearings.," he said. "Those hearings to date have not yet materialized, and no timetable has been set."

He said hearings are necessary to resolve "various and contradictory" information from the White House about the Clintons' involvement in Whitewater Madison.

"The only mechanism which will ensure the American people full disclosure - a complete account of what President Clinton knows about Whitewater and why he has, so far, bristled and skirted the most basic questions-is congressional hearings with full participation by members of both political parties," he said.

STANDING RULES OF THE SENATE

[25.1a]

shall be appointed in the same manner as standing committees.

4. When a chairman of a committee shall resign or 24.4 cease to serve on a committee, action by the Senate to fill the vacancy in such committee, unless specially otherwise ordered, shall be only to fill up the number of members of the committee, and the election of a new chairman.

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1. The following standing committees shall be appointed 25.1 at the commencement of each Congress, and shall continue and have the power to act until their successors are appointed, with leave to report by bill or otherwise on matters within their respective jurisdictions:

(a) (1) Committee on Agriculture, Nutrition, and Forest- 25.1a ry, to which committee shall be referred all proposed legislation, messages, petitions, memorials, and other matters relating primarily to the following subjects:

1. Agricultural economics and research.

2. Agricultural extension services and experiment stations.

3. Agricultural production, marketing, and stabilization of prices.

4. Agriculture and agricultural commodities.

5. Animal industry and diseases.

6. Crop insurance and soil conservation.

7. Farm credit and farm security.

8. Food from fresh waters.

9. Food stamp programs.

10. Forestry, and forest reserves and wilderness areas other than those created from the public domain.

11. Home economics.

12. Human nutrition.

13. Inspection of livestock, meat, and agricultural prod

ucts.

14. Pests and pesticides.

15. Plant industry, soils, and agricultural engineering. 16. Rural development, rural electrification, and watersheds.

17. School nutrition programs.

(2) Such committee shall also study and review, on a comprehensive basis, matters relating to food, nutrition,

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