
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, December 24, 1993                   TAG: 9312240089
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

CLINTON OFFERS FILES

Under intense political pressure, President Clinton instructed his attorney Thursday to give the Justice Department all records of his investment in an Arkansas real estate partnership linked to a failed savings and loan.

The action followed calls from congressional Republicans for investigations into Clinton's dealings with S&L operator James McDougal and circumstances surrounding the suicide of White House deputy counsel Vincent Foster this summer.

Some of the investment records involving Whitewater Development Corp. were removed from Foster's office July 22 by White House counsel Bernard Nussbaum in the presence of federal investigators looking into Foster's July 20 suicide. Investigators were not shown the Whitewater documents, which were turned over to the Clintons' personal attorney in Washington, David Kendall.

White House communications director Mark Gearan emphasized that the president offered the papers voluntarily and said, "What we would like to highlight is at no time did anyone, anywhere, anyhow ever remotely suggest that there was any impropriety regarding the president and Mrs. Clinton's investments." After a long closed-door session with Nussbaum and White House aides, Gearan said, "At no time did any law enforcement official request the documents."

Federal authorities are investigating the costly collapse of McDougal's thift, the Madison Guaranty Savings and Loan Association. They also are said to be examining whether any thrift funds were illegally diverted to Whitewater - owned jointly by the Clintons and McDougal - and whether any money was routed to Clinton's 1984 gubernatorial campaign.

Hillary Rodham Clinton said this week she was bewildered by the interest in the Whitewater documents, as the couple lost $69,000 in the deal.

Also Thursday, Attorney General Janet Reno indicated she probably would not appoint a special counsel to probe the Whitewater investment.

Rep. Jim Leach of Iowa, the House Banking Committee's ranking Republican, had urged Reno on Wednesday to appoint a special counsel "to ensure that matters before the Department of Justice are reviewed on a nonprejudicial manner."

Reno told reporters Thursday, "From my perspective, if I appoint a special prosecutor, that has almost more political implications than letting career prosecutors who have worked for several administrations and who have real experience in federal prosecution conduct it in the right way." She said, "I think it should proceed with career prosecutors in the Department of Justice who have worked for several different administrations - Republicans, Democrats - to proceed as they are doing and conducting it in the right way."

by CNB