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

DATE: MONDAY, March 14, 1994                   TAG: 9403140108
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Los Angeles Times
DATELINE: WASHINGTON                                LENGTH: Short

CLINTONS UNCOVER `TAX ERRORS'

Hillary Rodham Clinton said she and President Clinton are prepared to pay back taxes if it turns out that they underpaid on their Whitewater real estate investment, according to published reports.

Newly appointed White House Counsel Lloyd Cutler predicted Sunday that the controversy "will turn out to be nothing at all."

U.S. News and World Report quoted White House "insiders" as saying that David E. Kendall, the Clintons' personal attorney, has told the couple that all he has uncovered are "tax errors and improper deductions."

The magazine said Kendall "has assured the first couple that as far as he can tell they have not seriously violated the law." Kendall declined to comment Sunday.

Despite his acknowledgment that he did not yet know all the details, Cutler on NBC's "Meet the Press" defended the White House on several issues, including the meetings of White House aides with officials of the Treasury Department and Resolution Trust Corp. about their investigation into the savings and loan company involved in the case. Those meetings are being investigated by Special Counsel Robert Fiske.

"The fact is no one - if I'm correctly informed - no one in the White House asked that any change be made and no change was made," Cutler said.

Asked on CBS' "Face the Nation" if the president has told him whether he was innocent of any wrongdoing in the matter, Cutler responded: "Of course, he said that to me. And I believe him."

by CNB