Chington Post

May 17, 1994

By Ann Devroy and Susan Schmidt

White House officials say Whitewater special counsel Robert B. Fiske Jr. has told them he is nearing the end of the first phase of his investigation, prompting their own internal investigation in preparation for sunimer congresnaunal hearings.

White House Counsel Lloyd N. Cutler said yesterday that he has obLained an agreement from the Treasury Departinent for access to its documents related to contacts White House officials had with Treasury ofGirls about Whitewater.

Fiske yesterday declined to say how close he is to determining whether those contacts were inproper or allegni, but amid, "It cer tainly isn't over."

Fiske said White House officials re cently asked him whether they would be interfering with his investigation if they reviewed the Treasury documenia. Flake said he told them his in vestigation was at a point where such a review would not interiors.

That's all we told them." sald Fiske, adding that White House afflcials were not asking whether they should take such a step.

Political appointees at Treasury have been renning the federal Reso hation Trust Corp, and had access to information about the criminal and civil cases arising out of the failure of Madison Guaranty Savings & Loan in Arkansas. Madison was owned by James B. McDougal, inst owner with the Clintons of the Whitewater real estate venture m the Ozark Mountains.

Senior Treasury and White House officials had a series of meetings about the Madison-Whitewater investigation beginning last fall. Twelve officials all have testified before a grand jury, and Plake has subpoenaed all rela ad docu

Cutler said yesterday the hed witho

stances that do not interfere with Fiske's investigation. Senate Majorty Leader George J. Mitchell (DMaine) and Sunday of hearings. "We Are going to do it as promptly as we can, do it right after the conclusion of the first phase."

Mitchell and Senate Minority Leader Robert J. Dole (R-Kan.) have been engaged in periodic negolia Lions over the timing and scope of any congressional hearings.

Flake said he planned to promptly issue a forensic report on Foster. putting to rest questions about whether there was foul play or if be committed suicide. as a Virginia medical examiner has ruk-d.

probe likely to go into 1995 House my they expect the report to Some sources close to the White be issued soon and bebeve it will conclude Foster's death was a s cide. However, Fisise issued a broad subporns two weeks ago that seeks to track documents that were in Foster's offics at the time of his denth. It could not be learned whether that information will be pursued separately or become part of the report on his death.

LLOYD IL CUTLER White House probe to begin

VINCENT FOSTER

... report on his death promised

Cuth aid the White T's pr mary novel for the dicum was fo prepare for congressinaal harm where White House and Treasury officials might have to r. The status of those hearings has been in waiting word from Flake that

d no longer object to at least hase dealing with the White

Senate has voted to conduct hearings at a time and under circun

Fiske's investigation now seerns likely to stretch well into 1995. Flake is still adding to his staff of more than 30 lawyers and investi tons: Two more lawyers were hired a week ago, and a message to FBI bureaus around the country last month said Fiabe is seeking agents with backgrounds in financial and white-collar crime.

In addition to the Washington end of the probe, the special counsel's of fice has been investigating fairs of Madison Guaranty and the Rose Law Firm. Former ma Judge David Hale, who pleaded guilty to fraud charges and le coop erating with Plake, has appeared repeatedly before the grandpary in LaLe Rock, sources

Hale, who own company backed Administration

venture capital the Small Bust alleged that

he was pressured in the mid-1980s by thee-Gov. Bill Clinton, Mr Dougal and Hi Guy Tucker (D), current Arences governor, to make fraudulent loan One loan, in the amount of $300,000. was ward to an advertising comparry owned by Susan McDougal, and at least some of that money ended up huying land in Whitewater's namar.

Clinton and Mc Dongal hoth Kay the Clintuan diri mut kur the SBAbacked loan was used for Whitewater land.

Hale, who made his allegation public last fall, has largely disp peared from view. Court officials in Little Rock said he has at times bren placed under FBI protection.

la addition to pressing forward on the Hale allegations, Fiske's staff wer records at the where Foster, Hille ham Clinton and former an attorney general Webster L rere all partners before agtan

delivered a 3

thington Post

May 17, 1994

White House officials any Whitewater special counsel Robert R. Fiske Jr. has told them he is nearing the end of the first phase of his investigation, prompting their own internal investigation in preparation for sunimer congresnaunal hearings.

White House Counsel Lloyd N. Cutler said yesterday that he has obLained an agreement from the Treasury Departinent for access to its documents related to contacts White House officials had with Treasury officials about Whitewater.

Fiske yesterday declined to say how close he is to determining whether those contacts were inproper or legni, but aid, "It cer tainly isn't over."

Fiske sard White House officials recently asked him whether they would be interfering with his investigation if they reviewed the Treasury documents. Flake asid he told thean hin in vestigation was at a point where such a review would not interfere.

That's all we told them," said Fiske, adding that White House offlcials were not asking whether they should take such a step.

Political appointees at Treasury have been renning the federal Reso hation Trust Corp. and had access to information about the criminal and civil cases arising out of the failure of Madison Guaranty Savings & Loan in Arkansas. Madison was owned by James B. McDougal, joist owner with the Clintons of the Whitewater real estate venture in the Ozark Mountains

Senior Treasury and White House officials had a series of meetings about the Madison-Whitewater investigation beginning last fall. Twelve officials in all have testifed before a grand jury, and Plakse has I related documents.

CURE yesterd had "withdrawn any of White House obtaining sary copies of docum and other written mat thom contarts

asked officials at and at Treasury ternal investigation because they could

W the contacts

to coordinat

ing statements and other actions that would not be conducive to a full investigating by Fink.

Cutler and Treasury Secretary Lloyd Boston and top annitani worked out what Culler said were procedures to keep from the White House ary documents that luvalve the substance of the Whitewater federal arvestigation but include documents that relate to White HouseTreasury discussions of it.

An administration official said Treasury "had qualms about the White House quest because of ion with the

fears the

White

sion. The

amounte

ments th

Cutler

worked out agre duced" full understan keep us from seeing docu we should not be sering."

en as collywhat

ROBERT B. FISKE R ...probe likely to go into 1995

VINCENT FOSTER ... report on his death promised

Cutler and the White Thun's pri mary novel for the document was to prepare for congressional hearing where White Hauer and Treasury officials might have to appear. The status of those hearings has been in timbo, awaiting word from Flake that

no longer object to at least dealing with the White

Senate has voted to conduct earings at a time and under cirrun

stances that do not interfere with Fiske's investigation. Senate Majorty Leader George J. Mitchell (DMaine) said Sunday of hearings, "We Are going to do it as promptly as we can, do it right after the conclusion of the first phase."

Mitchell and Senate Minority Leader Robert J. Dole (R-Kan.) have been engaged in periodic negotia tions over the timing and scope of any congressional hearings

Fleke said he planned to promptly issue a forensic report on Foster. putting to rest questions about whether there was foul play or if the committed suicide. as a Virginia medical examiner has rukd.

Some sources close to the White House my they expect the report to be issued soon and bebeve it will conclude Foster's death was a sicide. However, Flake issued a broad subporns two weeks ago that seeks to track documents that were in Foster's office at the time of his death. It could not be learned wheth er that information will be pursued seperately or become part of the report on his death.

Fiske's investigation now seerns likely to stretch well into 1995. Flake is still adding to his staff of more than 30 lawyers and investig tors: Two more lawyers were hared a week ago, and a message to FBI bureaus around the country last month said Fiabe in seeking agents with backgrounds in financial and white-collar crime.

In addition to the Washington end of the probe, the special counsel's office has been investigating the

airs of Madison Guaranty and the Rose Law Firm. Former ma Judge David Hale, whe

guilty to fraud charges and erating with Plake, has appe

peatedly before the grand jur Le Rock, cources said.

capital

Hale, who owned a company backed by the Small Bust news Administration as alleged that red in the mid-1980s by then-Gov. Ball Clisson, Mr Dougal and Hi Guy Tucker (D), current Arkans governor, to make fraudulent loans. One loan, in the amount of $300,000. was used to an advertising company owned by Suxen McDougal, and at least some of that money ended up huying land in Whitowater's narr.

Clinton and McDougal hoth Kay the Clintumn dirt mot kunw the SBAbacked loan was used for Whitewater Luni.

Hak, who made his allegations public last fall, has largely disap peared from view. Court oficiais in Little Rock said he has at times bren placed under FBI protection.

la addition to pressing forward on the Hale allegations, Fiske's staff hee bean poring over records at the Rose Law Firm, where Foster, Hilleand former NEOry Rodham Cli ciate attorney general Webster L Hubbell were all partners before

delivered a 31ats and case files. Hubbell's activities urces said. Among the special counsel's tigating Hubbell's hairMadison-related lawsun for the government and the kni hill he submiller.

other

office is

dling of a