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Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a tabbed divider. Given our digitization capabilities, we are sometimes unable to adequately scan such dividers. The title from the original document is indicated below. Divider Title: Feb. 21, 1997 LOS ANGELES TIMES (first-edition) special counsel. Page 1 for Friday, Feb. 21, 1997: 'This policy of supporting the président of Paraguay established," said Davis, adding that it was the administratio. Top of page: ongoing policy to support democratic governments in Latin America, especially the first democratically elected government in Col 1: Feature on future of a local city. Paraguay in 40 or more years." The tale is just the latest in a series of disclosures about political Col 2: Amid signs the Army's sexual misconduct scandal is reaching contributions that have buffeted the White House and preoccupied ever deeper, the Pentagon discloses that the commandant of an Army congressional investigators. Nor was it the only one that captured training base in Germany has been reassigned because of misconduct attention in the capital Thursday. Webster Hubbell, a former official in the Clinton Justice allegations. (ARMY, moved). Department, and John Huang, a former Democratic fund-raiser, told Cols 3-5: Wild art of James Earl Ray. Congress that they planned to invoke the Fifth Amendment right against self-incrimination and would not turn over documents Col 6: In a capitulation likely to make it easier for defrauded subpoenaed by congressional investigators. Prudential Insurance Co. customers to get their money back, the giant Two others tangled up in the fund-raising controversy, Charles Yah insurer reaches tentative agreements with California and three other Lin Trie and Pauline Kanchanalak, also have indicated they would not states that had opposed as inadequate a class-action settlement turn over certain business records sought by investigators. affecting 10.7 million life insurance customers. (PRUDENTIAL, Separately, the White House was scrambling to respond to a report moved). by NBC News that it was home to workers on the payroll of the Democratic National Committee. Late Thursday, White House Chief Above fold: of Staff Erskine Bowles decided to shift the five employees to the White House payroll, after Clinton ordered a review of the practice. Col 2: The White House releases records showing the number of The employees work in the offices of the vice president, public liaison times a generous Democratic donor with ties to the Paraguay and the scheduling and advance staff. government got access to the White House. (DONATE, moved). This revelation is deeply troubling and extremely serious," Rep. David M. McIntosh, R-Ind., contended in a letter to White House Cols 3-4: Local poll story. counsel Charles Ruff earlier in the day. Apart from the obvious legal concerns about the use of political funds to augment official Col 5: Feature on The Los Angeles County Sheriff's Department, government activity, it clearly suggests that the DNC had accused of overcharging the state millions of dollars for medical care inappropriate and perhaps illegal access" to a White House database provided to jailed parole violators. that is legally off-limits to party officials. In the tale of Jimenez and U.S. policy to Paraguay, the questions Below fold: center on the link between large donations and special access and influence allowed those who make them. Jimenez has actually Col 4: With drug czar Gen. Jose de Jesus Gutierrez Rebollo contributed more than $100,000 to the Democrats, although the imprisoned on charges of collaborating with Mexico's biggest amount and dates of the other donations were not immediately narcotics-smuggling cartels, U.S. intelligence agencies are feverishly available. The White House suggested Thursday the total amount will assessing the damage done by his access to the confidential reach several hundred thousand. inner-workings of U.S. counter-narcotics efforts and the intricacies According to records released Thursday, Jimenez apparently visited and secrets of the joint U.S.-Mexican drug warin a better than even the White House 12 times over the last few years. The majority of chance to maintain his position at the head of Chinese leadership, but visits were gatherings that mixed politics and socializing, such as two political succession in China is a tricky business, fraught with hidden Democratic Party dinners in 1995, along with a holiday reception and dangers, and Jiang faces several challenges leading up to an important Arkansas Lawn Concert. Communist Party congress in October. (CHINA-JIANG, moved). But some of the meetings were with Thomas F. "Mack" McLarty, Clinton's former chief of staff who was traveling extensively through Cols 4-6: Local reaction to murder charge against released convicted Latin America and subsequently named a special envoy to the region. rapist Lawrence Singleton. McLarty often met with business executives and others who had insight into political and economic issues in Latin America. After about 15 minutes of one such meeting in early 1996, when Jimenez Donor Voiced Paraguay Concerns During White sought to discuss an escalating constitutional crisis involving the military in Paraguay, McLarty broke up the meeting, saying he wanted House Visits (Washn) By Jonathan Peterson specialists in attendance, according to a White House account (c) 1997, Los Angeles Times Thursday. WASHINGTON Secret Service records released Thursday show McLarty and Jimenez next met in early April, along with two that representatives from the State Department and an official of the a contributor to the Democratic Party with ties to Paraguay was National Security Council. A week later, Jimenez returned with invited to the White House 12 times between 1994 and 1996, and the Paraguay's ambassador to the United States. administration confirmed that he met with top U.S. officials to discuss ``I saved democracy in Paraguay," Jimenez bragged in the Wall concerns about a coup in that South American country. Street Journal article. The contributor, Mark Jimenez, urged the White House to try to help Bunaware of the $100,000 donation. with Paraguay's plight, and President Clinton later called that nation's Said one: This guy's taking credit, perhaps for his own purposes beleaguered leader to express support when the government plunged and that's unseemly." into a brief constitutional crisis last year. As tension with the military eased, the Democratic National Committee received $100,000 from Jimenez. The extraordinary access given Jimenez provides another example of the ability of Democratic donors to gain access to the president's foreign policy apparatus on issues of importance to them. But White House officials Thursday vehemently denied any link between the donations from Jimenez, who is a wealthy Florida computer executive whose sales to Paraguay were crucial to his growing South American export market, and administration policies affecting Paraguay. The Wall Street Journal reported the series of events earlier this week. The suggestion that this policy and President Clinton's support for (Paraguay's) President Juan Carlos Wasmosy had anything to do with Mark Jimenez's visits much less his contribution is totally baseless and without any shred of evidence," said Lanny Davis, White House Huang may cooperate with House investigation By Tom Squitieri and Judi Hasson USA TODAY Al Tenn. court John Huang, a key figure in the Democratic fund-raising opens door controversy, is seeking limited seeks immunity immunity in exchange for his cooperation with a House in- to Ray trial vestigating committee. Huang and former associate By Richard Willing attorney general Webster Hub- USA TODAY AI bell refused Thursday to turn over documents subpoenaed MEMPHIS - A county by the House Government Re- judge took the first step Thurs- form and Oversight Commit- day toward re-opening the case tee. Two dozen subpoenas have against convicted assassin been issued by the panel. James Earl Ray after emotion- Huang and Hubbell invoked al testimony from the widow their Fifth Amendment privi- and son of the Rev. Martin Lu- lege against self-incrimination ther King Jr. in refusing the panel's demand. Judge Joseph Brown ruled In a letter to the panel, that it is "theoretically possi- Huang's lawyer agreed to turn ble" that new tests could prove over some documents and sig- Ray's rifle did not fire the shot naled for the first time that he that killed King as he stood on wants a deal in exchange for a Memphis motel balcony in giving up more information. April 1968. Huang apparently wants im- Ray's lawyers believe that a munity from prosecution special electron microscope based on the documents he not available in 1968 and turns over. scarcely used today will rule Lawyers for both men re- Ray out as the assassin and fused to comment. overturn his conviction. The Hubbell-Huang refusals Ray pleaded guilty in 1969 to appear to be the start of legal killing King and was sentenced maneuverings that could slow to 99 years in prison. But he the launch of both House and quickly changed his story and Senate probes into the growing began seeking the trial he did fund-raising furor. not have due to his plea. Two other figures in the con- Ray's lead lawyer, William troversy, businessman Charles Pepper, called three experts to USA TODAY Yah Lin Trie and Thai busi- testify. But the hearing's dra- nesswoman Pauline Kanchan- ma was supplied by two sur- alak, instructed their lawyer prise witnesses: Coretta Scott Thursday not to accept Senate King and her son, Dexter, 36. subpoenas seeking business re- Both Kings support a trial for FRIDAY, FEBRUARY 21, 1997 cords tied to their fund-raising Ray to "bring some sense of for Democrats. closure about my husband's White House spokesman death," as Mrs. King said. Her Lanny Davis said President late husband supported justice Clinton respects decisions even for those who showed the made "under advice of coun- "vilest hate." sel." However, Davis said Clin- "If Mr. Ray is denied a trial, ton "wants all the facts to come our family and indeed the en- out as quickly as possible." tire nation will also be denied Former U.S. attorney Joseph the due process of law that is diGenova said the Fifth the birthright of every citizen." Amendment claim would not But the Memphis judge hold up in court and appeared stopped short of ordering the to be made simply to delay the new tests. He referred that de- panel's investigation. cision to Tennessee's Court of Hubbell is a former law part- Criminal Appeals. That court, ner of Hillary Rodham Clinton which has turned down a simi- who just ended a 17-month sen- lar request from Ray's lawyers tence for tax evasion. He was once before, can take any- ordered to produce documents where from a few days up to a about payments he. received year to act. from Clinton allies in 1994. Pepper said the ruling "put Those payments included an us further along the road than estimated $250,000 from the we've ever been before" to- Lippo Group, the Indonesian ward getting a trial for Ray. conglomerate in the center of But he said his client's "longev- the fund-raising debate. ity" is'a factor. Huang, a former Commerce Ray, 68, is in a Tennessee Department aide and fund-rai- prison hospital dying of liver sier for the Democratic Nation- disease. If he dies, his appeal al Committee, once headed the becomes moot. U.S. operations of Lippo. Databaserevelation-changes White House intern policy By Paul Bedard only four remaining DNC-paid volunteers and interns were moles White House social office, the of- eral other offices were granted want it investigated for political THE WASHINGTON TIMES workers. pilfering official data for political fices of personal correspondence, access, such as the domestic policy. misuse. "On balance, we'd rather have use by the DNC. public liaison and legislative af- shop, the White House Office of "Apart from the obvious legal The White House last night the four individuals currently on An administration official said fairs and the first lady's operation Women's Initiatives and Outreach, concerns about the use of political abruptly ended a policy of allow- the DNC payroll on the White some of the 12 were paid by the and Oval Office would have access the White House Fellowship Pro- funds to augment official govern- ing outside political groups to pay House payroll and discontinue the Democratic Party; only one - to the system. gram, and even the West Wing re- ment activity, it clearly suggests for West Wing volunteers and in- practice," White House spokesman Barbara Woolley was named by Of the six volunteers with access ceptionist, Debra Schiff. that the DNC had inappropriate terns, some of whom worked on Michael McCurry said last night. the White House. The White to the secret system, according to A White House official said and perhaps illegal access to the secret White House database Documents provided to The House counsel's office had told a July 1996 memo, one works in those offices needed access to the WHoDB," said Rep. David M. of Clinton donors and supporters. Times show that 12 interns and Congress that no party aides had first lady Hillary Rodham Clin- database. McIntosh, Indiana Republican. The policy change came after volunteers regularly used the sen- access to the computer system. ton's office, one in the personal The computer system tracks ev- the White House revealed that the sitive computer system, which In a June 1996 memo, for exam- correspondence unit, two in the so- ery Clinton supporter and White Mr. McIntosh, a subcommittee salaries of 20 of its workers had tracks the personal and political ple, the White House said "every cial office, one in political affairs House visitor since he took office chairman on the House Govern- been paid by the Democratic Na- histories and activities of some precaution is being taken to secure and one for public liaison. and includes sensitive information ment Reform and Oversight Com- tional Committee, and after The 355,000 Clinton supporters, do- all files, electronic and hard copy, Of the six interns, four work in such as Social Security numbers, mittee, is probing WHoDB for po- Washington Times asked about nors and White House visitors. and access continues to be limited presidential personnel, one in Oval family heritage, political contribu- litical misuse. new documents showing that some The documents u dermine ad- to those individuals whose official Office operations and one in an un- tion record and reason for meeting "Iam really outraged. The coun- of the 12 interns and volunteers ministration claims that the sys- duties require access." identified office. Two other log-ins with the Clintons. sel's office assured us no one from working on the database were paid tem was secure and protected Previous memos describing the are set aside for volunteers in The documents provided to The the DNC had access to the system by the DNC. from political abuse, but the White White House Database, known by other offices. Times emboldened congressional and how we find out they did," said The policy change will affect House rebuffed charges that the the acronym WHoDB, said the The documents showed that sev- critics of the computer system who Mr. McIntosh. tions improve. in tinue the hunger strike until condi- second term, said he would con- signed in 1995 in the middle of his Reynolds, a Democrat who re- an exam if he refused to eat. could force Reynolds to submit to The judge said prison officials shock, Mr. Ferguson said. gerous level, which could result in sugar levels have fallen to a dan- tors examine him to see his blood Reynolds has refused to let doc- other inmates. The Washington Times FRIDAY, FEBRUARY 21, 1997 signed to protect Reynolds from guson said the restrictions are de- Assistant U.S. Attorney Joe Fer- strike two days after the transfer. pounds since starting the hunger client may have lost as much as 20 Attorney Robert Loeb said his Wednesday. trict Judge Charles Norgle on mal," Reynolds, 45, told U.S. Dis- "I'm being treated like an ani- and bank fraud charges. coming trial on campaign finance his attorney to prepare for an up- he was denied adequate access to federal center Feb. 7. He also said ing moved from a state prison to a and solitary confinement since be- justice, complained of dismal cells campaign worker and obstructing sexually abusing an underage conditions. Reynolds, serving five years for hunger strike protesting prison force-feeding if he doesn't end a mit to medical tests and possibly Mel Reynolds was ordered to sub- CHICAGO (AP) - Former Rep. prison not eating Reynolds Associated Press "Former Clinton administration of- ficial Webster L. Hubbell and Demo- cratic fund-raiser John Huang told Congress yesterday they will invoke their Fifth Amendment privilege against self-incrimination and refuse to turn over subpoenaed documents, House aide said. Two of the key figures in the Memocratic fund-raising controver- Huang Say They'll Invoke Fifth Amendment $, Hubbell and Huang informed the House Government Reform and Gyersight Committee by letter, said Barbara Comstock, the panel's chief investigative counsel. The two had been ordered in the subpoenas to produce the docu- ments by yesterday. Comstock said Hubbell refused to produce any documents. Huang pro- duced some documents and declined to turn over others on the advice of his attorney. Huang's letter, how- ever, suggested he would consider turning over more documents if he was given limited immunity for the document production, Comstock said. Hubbell, a longtime friend of Presi- dent Clinton's and a central player in the Whitewater criminal probe, had been ordered to produce documents about payments he received from Clinton allies while he was under criminal investigation in 1994. After resigning from the Justice Department three years ago, Hubbell received money from a company owned by the family of Indonesian bil- lionaire Mochtar Riady, a longtime Clinton friend and political supporter. Huang, a former Commerce De- partment aide and former vice chair- man of the Democratic National Com- mittee, once headed the U.S. opera- tions of the Lippo Group, one of the Riady family's businesses. Hubbell, a former law partner of Hil- lary Rodham Clinton, pleaded guilty to tax evasion and mail fraud in the White- water investigation and agreed to coop- The Washington Post FRIDAY, FEBRUARY 21, 1997 Hubbell, erate fully with prosecutors. But his memory lapses-he says he is unable to recall events of a decade ago-have frustrated investigators' efforts to get to the bottom of Whitewater. Huang, Hubbell both take Fifth; Trie, Kanchanalak may be in Asia AI The disgraced former associate Investigators want to know if the By Jerry Seper attorney general was asked to pro- legal-defense money was a politi- THE WASHINGTON TIMES duce records on his receipt of cal payoff, the sources said. They $325,000 in fees in the nine months also are trying to determine what John Huang and Webster L. Hubbell, at the center of a con- between his March 1994 Justice role Mr. Trie played in a White gressional probe into foreign- Department resignation and his House "coffee" in February 1996 linked campaign contributions, December 1994 guilty plea in the involving Mr. Clinton and Chinese Whitewater investigation. The arms dealer Wang Jun. The two yesterday asserted their Fifth House panel wants to know if the men met with the president at a Amendment rights against self- incrimination in refusing to turn money was intended to limit his session arranged by the DNC and over documents subpoenaed by promised cooperation in the attended by other campaign con- a House committee. Whitewater probe. The bulk of the tributors. Mr. Wang was the guest Two other targets of House fees, $250,000, came from the of Mr. Trie at the meeting. and Senate subpoenas, Arkansas Lippo Group. The White House has said it did businessman Charles Yah Lin Independent counsel Kenneth not know Mr. Wang was chairman Trie, who gave $640,000 in ques- W. Starr also is looking into the of a Chinese arms company known tionable donations to President fees, and Mr. Hubbell has testified as Poly Technologies Inc. The firm before the Whitewater grand jury Clinton's legal-defense fund, and makes weapons for the Chinese in Little Rock. Last year, he re- Thai businesswoman Pauline military and at the time of the visit fused to tell the Senate Whitewater Kanchanalak, whose $253,300 was under investigation by the U.S. Committee about his Lippo ties. contribution to the Democratic Customs Service in a major smug- Barbara Comstock, the commit- National Committee was re- gling operation. It had been identi- tee's chief investigative counsel, turned, are believed to have left fied by undercover agents as a sup- confirmed that Mr. Huang and Mr. the country to avoid producing plier of 2,000 AK-47s delivered to Hubbell had been ordered to pro- any records. drug dealers and street gangs in duce the documents by the close of Mr. Trie, whose records were the United States. business yesterday. She would not sought by the House Govern- comment on what action the com- The same day of the White ment Reform and Oversight mittee will consider in its re- House coffee, Mr. Wang met with Committee, and Mrs. Kanchana- Commerce Secretary Ronald H. sponse. lak, a target of a Senate Govern- Mr. Huang was not available Brown, former DNC chairman. mental Affairs Committee sub- yesterday for comment, but he poena, are believed to be in Asia, Officials with the legal defense previously has denied any wrong- fund returned Mr. Trie's money doing. Mr. Hubbell also was un- see HUANG, page All after questions had been raised available. about its source. The donations in- From page AI Mr. Trie did not respond to mes- cluded checks with signatures that sources close to the committees sages left on a telephone answer- matched those on other checks and said. ing machine at his Little Rock money orders that were numbered House committee lawyers con- company, Daihatsu International sequentially but supposedly orig- firmed yesterday that Mr. Huang Trading Corp. He and Mrs. Kan- inated from people in different had asserted his rights against chanalak reportedly told their at- cities. self-incrimination in refusing to torney, Reid H. Weingarten, to turn over documents to the panel, refuse service of any congres- but they said he suggested in a let- sional subpoenas. Mr. Weingarten ter he would be willing to discuss did not return calls to his office for a possible grant of immunity with comment. regard to the production of other The Senate and House commit- records. tees have issued more than 70 sub- The former Lippo Group execu- poenas for documents in their in- tive, Commerce Department offi- vestigation of contributions to Mr. cial and DNC fund-raiser, through Clinton and the DNC, and into the his attorney, John C. Kenney Jr., activities of key DNC fund-raisers handed over some documents this and administration officials. week and said he would be willing to work with the panel but needed Mr. Trie, a longtime Clinton sup- a deal guaranteeing him limited porter, also is a focus of a Justice immunity before he would proceed Department task force investiga- further. tion, which has subpoenaed the About half the $3.4 million Mr. president's legal-defense fund for Huang is believed to have raised records concerning the $640,000 for Mr. Clinton and the Democratic donation. The donation, delivered Party has since been returned be- in two large envelopes, was later cause of questions over its source. returned when fund executives Mr. Hubbell, released last week said they could not determine the The Washington Times FRIDAY, FEBRUARY 21, 1997 after serving a 16-month sentence source of the money. for fraud and tax evasion in the bilking of his former partners at Little Rock's Rose Law Firm, flatly asserted his Fifth Amendment rights and told the committee he would not turn over any doc- uments in the panel's ongoing in- vestigation, committee lawyers confirmed. Mottine 2/21/97 DEM FUNDRAISING: ARE HUANG & HUBBELL LOOKING FOR A DEAL? Ex-DNC fundraiser John Huang and ex-assoc. AG Webster Hubbell have refused to turn over subpoenaed documents to the House Gov't Reform & Oversight cmte, claiming their Fifth Amendment rights against self-incrimination. Senate sources said two other figures in the ongoing fundraising controversy, AR businessman Charles Yah Lin Trie and Thai businesswoman Pauline Kanchanalak, "have instructed their lawyer not to accept service of Senate subpoenas for business records." Although Hubbell refused to produce any documents, Huang produced some and his letter to the cmte "suggested he would consider turning over more documents if he were given limited immunity for the document production" (AP/AZ DAILY STAR, 2/21). LET'S MAKE A DEAL? Huang's request for immunity "signaled for the first time that he wants a deal in exchange for giving up more information." The Hubbell-Huang refusals "appear to be the start of legal maneuvering that could slow the launch of both House and Senate probes into the growing fund-raising furor.' WH spokesperson Lanny Davis said Pres. Clinton respects the decisions made "under advice of counsel." However, Davis said Clinton "wants all the facts to come out as quickly as possible." Ex-U.S. Atty Joseph diGenova "said the Fifth Amendment claim would not hold up in court and appeared to be simply to delay the panel's investigation" (Squitieri/Hasson, USA TODAY, 2/21). As for Trie and Kanchanalak, W. TIMES' Seper reports that they are "believed to have left the country to avoid producing any records." Sources close to the cmtes said the two are believed to be in Asia (2/21). LATEST ROLE: Senate Gov't Affairs Cmte chair Fred Thompson's role in heading up the investigation is profiled in today's N.Y. TIMES and W.S. JOURNAL. W. POST's Dionne, under header "Fred Thompson's Hot Potato,' writes that only by "facing up to his own party's money problems" will Thompson be effective in going after the Dems: "If Thompson wants to be a reformer, he'll have to take the risk" (2/21). RED SKELETON? The N.Y. POST's front page features a picture of Bill and Hillary Rodham Clinton with three Asian men under the headline: "White House Hustler, DNC got meeting with Cabinet big for shady donor." The "New Skeleton in Clinton's Cabinet" is that the DNC arranged a meeting with then-Energy Sec. Hazel O'Leary for a Chinese friend of a "big-bucks donor whom the president's aides considered a 'hustler.' O'Leary agreed to meet with a friend of Johnny Chung, who gave $366,000 to the DNC and "who used his pull to get pals to meet President Clinton and other top U.S. officials." It is the "latest example where the DNC -- under fire for dangling access to Clinton and other key administration players to raise campaign cash -- intervened with a U.S. official on behalf of a generous donor" (Galvin, N.Y. POST, 2/21). BAYH THE WAY: Ex-IN Gov. Evan Bayh (D) invited Huang to an "informal retreat" last summer to "discuss Bayh's political future.' A Bayh spokesperson said Huang, who declined the invitation, would not have been invited had Bayh's staff "known about his questionable activities." Bayh also returned a $2,000 contribution from Huang earmarked for a potential Bayh '98 Senate race after the "uang controversy surfaced, though Bayh "maintained that the contributions were legal" (Smith, AP/ INDIANAPOLIS STAR/NEWS, 2/20).