The Washington Times

F A4 THURSDAY, JUNE 30, 1994

Leach criticizes narrowed hearings

Foster's death not on agenda

By Jerry Seper

THE WASHINGTON TIMES

Rep. Jim Leach said yesterday that Whitewater-Madison hearings proposed by House Banking Committee Chairman Henry B. Gonzalez were "unprecedentedly restrictive."

"It should be no surprise to you that the minority finds perplexing your efforts to further narrow the already narrow approach approved by the Democratic leadership of the full House," the lowa Republican said in a letter.

"The Banking Committee has a long history of comprehensive investigations," said Mr. Leach, ranking GOP member on the panel. "Yet the hearings outlined by your staff would appear unprecedentedly restrictive."

Mr. Gonzalez, Texas Democrat, has said Whitewater-Madison hearings will begin July 26, but told the House leadership he does not plan to include the death of White House Deputy Counsel Vincent W. Foster Jr. as a hearings topic. He said the panel does not have the expertise to conduct a review into the death and suggested it be dropped.

In a letter yesterday to Mr. Leach, Mr. Gonzalez said pending committee hearings have been structured to "respect the limitations" agreed to by the House leadership.

The leadership, with bipartisan support, agreed June 15 to hold Whitewater-Madison hearings. but to limit them to the so-called "Washington phase" of an ongoing investigation by special counsel Robert B. Fiske Jr.

That would include a review of the July 20 death of Mr. Foster, whose body was found in a Virginia park; the White House handling of the death, which was ruled a suicide; and meetings between Clinton administration officials and government regulators looking into a failed Arkansas thrift owned by a longtime Clinton

friend and business partner.

"Your letter appears to suggest a desire to exceed the limits agreed to by the bipartisan leadership," Mr. Gonzalez said, adding that a House resolution calling for hearings which Mr. Leach supported demanded that they be structured "in such a manner ... they would not interfere" with the Fiske probe.

He said that while he had "expressed concern with certain aspects" of the scope of the hearings, he was "attempting to respect" the House resolution.

"I trust that this is also your de sire, but frankly, your letter appears to suggest a desire to exceed the limits agreed to by the bipartisan leadership," he said.

Mr. Gonzalez has asked the White House to produce by July 8 the documents the panel needs for the hearings, and invited Mr. Fiske and top administration officials to testify.

Mr. Leach said he was surprised the Gonzalez witness list did not include Resolution Trust Corp. (RTC) officials from Washington or Kansas City, Mo., where the Whitewater-Madison probe bega... or Justice Department officials who looked into RTC criminal re ferrals involving Madison Guar anty Savings and Loan Association and Whitewater Development Corp.

Mr. Leach asked the chairman to release "all" internal documents the committee has collected from the RTC. Office of Thrift Supervi sion, Justice and Treasury departments, and the White House, including "all communications at and with the district offices."

He also objected to Mr. Gonzalez's decision to preclude the Foster death as a hearings topic.

Mr Leach also said that while witnesses Mr. Gonzalez invited had agreed to appear without subpoenas, "this may not be the case with some of the witnesses the minority intends to call" He asked the chairman to consider issuing subpoenas for additional wit

nesses

By Susan Schmidt Washington Post Staff Writer

House Banking Committee Chairman Henry B. Gonzalez (D-Tex.) announced yesterday he will begin Whitewater hearings July 26 and call as his first witness special counsel Robert B. Fiske Jr.

Gonzalez has been opposed to congressional inquiries into the Whitewater investment held jointly by the president, Hillary Rodham Clinton; James B. McDougal, owner of a now-failed Arkansasavings and loan, and his former wife, Susan. But House leaders decided this month that the banking committee should conduct hearings. Hearings also are planned by the Senate banking committee, to be started by July 29.

The congressional hearings will focus on the socalled Washington phase of the Whitewater investi

gation, and leaders of both houses agreed to wait until Fiske completes his work in that area before commencing.

Fiske has promised to tell Congress this week whether Whitewater hearings this summer will interfere with his investigation. He has said he will release a report this week on the death last summer of deputy White House counsel Vincent Foster.

Other Washington aspects of the Whitewater affair concern how White House aides disposed of Whitewater-related documents in Foster's office after his death, and whether there were improper contacts between White House aides and Treasury officials in -charge of the Resolution Trust Corp., the agency overseeing the banking activities related to the Whitewater probe.

By Jerry Seper

THE WASHINGTON TIMES

Whitewater-Madison special counsel Robert B. Fiske Jr. has been asked to testify before the House Banking Committee when it begins hearings on the affair July 26.

Committee Chairman Henry B. Gonzalez announced yesterday his invitation to Mr. Fiske to testify on "certain aspects of the Whitewater case."

In a letter to Mr. Fiske. Mr. Gonzalez's invitation limits the special counsel's pending testimony to the "Washington phase" of his ongoing Whitewater-Madison probe, which Mr. Fiske is now reporting to the Justice Department

The House agreed June 15 to hold Whitewater Madison hearings but to limit them to the Washington matters:

• A review of the July 20 death of White House Deputy Counsel Vincent W. Foster Jr. whose body was found in a Virginia park.

The White House handling of the death, which was ruled a suicide.

• Meetings between Clinton administration officials and government regulators looking into a failed Arkansas thrift owned by a longtime Clinton friend and business partner

"I understand you have ap proached the House and Senate leadership. indicating the Washington phase of your investigation is near completion, and that in the near future you will give Congress the green light to hold hearings on certain issues related to your investigation." Mr. Gonzalez wrote to Mr. Fiske

"Accordingly. I respectfully request that you appear before the Banking Committeee to discuss the scope and findings related to the Washington phase of your investigation." he said.

A spokeswoman for Mr Fiske said vesterday he was aware of the invitation but had not vet responded He is in Washington to deliver the results of the first phase to the Justice Department

Mr. Gonzalez. Texas Democrat. also formally asked the White House to produce by July 8 doc

uments it needs for the hearings. The Senate committee made a similar request last week in a letter co-signed by its Democratic chairman and ranking Republican member.

Acting White House Counsel Lloyd Cutler said President Clinton "will cooperate fully with the responsible congressional committees."

Mr. Gonzalez has told the House Democratic leadership he does not plan to include the Foster death as part of his committee's Whitewater-Madison review. He said the panel does not have the expertise to conduct a review into the death and suggested it be dropped as a hearing topic.

Mr. Fiske, a former federal prosecutor, heads an investigation by two federal grand juries into suspected illegal financial ties between Madison Guaranty Savings and Loan Association and Whitewater Development Corp., a part. nership of the Clintons, Madison owner James B. McDougal and his ex-wife, Susan.

He is trying to determine if Madison funds were improperly diverted to Whitewater and to the campaigns of several prominent Arkansas politicians, including Mr. Clinton. Madison, which also is the subject of another probe by the Resolution Trust Corp., was seized by federal regulators in 1989 at a cost to taxpayers of $50 million.

Mr. Fiske has asked the House and Senate not to proceed into Madison and Whitewater concerns until his investigators complete their inquiry, and have had an opportunity to interview wit nesses and review documents.

Sen Donald W. Riegle Jr., chairman of the Senate Banking Comraittee, said yesterday he had appointed a Boston lawyer, J. William Codinha, as special counsel to the committee for pending Senate hearings on Whitewater-Madison.

Mr. Riegle. Michigan Democrat. said Mr. Codinha formerly served as chief counsel to the US Senate Select Committee on POW-MIA affairs

• Frank J. Murray contributed to this report