Civic Economics - Page A1
March 20, 1997
FEDERAL GRAND JURY PROBE OF WHITE HOUSE
By Staff Investigative Journalists
WASHINGTON BUREAU - Amid general White House confusion, now FBI Director Louis Freeh disclosed a federal grand jury is probing Clinton-Gore Campaign finance wrongdoing.
What is of interest to the grand jury is the breach of security and possible behind-the-scenes contacts with a foreign government involving a donations-for-influence scandal. Targets include both the administration and Congress.
'One of the subjects that the grand jury and the task force is going to be investigating are allegations with respect to, not just illegal political activities and contributions, but also the national security aspects'Freeh told the Senate Appropriations subcommittee on foreign operations.
Senator Mitch McConnell(R) the committee chairman, asked Freeh about alleged illegal Chinese contributions or plans to contribute. Freeh said the grand jury was probing 'whether the funding or attempted funding or planning was originated not by individuals per se, but by a foreign government or state sponsor or ministry. That is really the heart of our grand jury hearings,' he said, adding that the allegations are 'being treated very seriously.'
Published reports of conversations in the Chinese Embassy, overheard by U.S. intelligence officials, indicate there were plans to give money surreptitiously during the 1996 presidential campaign.
After news stories broke the news of Communist Chinese interfence in the presidential election, the Democratic National Party began returning donations from sources they believed were tied to Communist Chinese sources. By this week, more than $3 million in donations have been returned by the Democrat Party.
Freeh was quoted in the Wall Street Journal on Friday as saying he believed that when FBI agents briefed two National Security Council staffers last summer on concerns about Chinese attempts to buy influence, that the staffers would relay that information to superiors, with the word eventually reaching President Clinton.
President Clinton was informed by FBI agents about the alleged Chinese plan. However, Clinton has now demanded to know why he hadn't been told about it.The FBI has stated previously that there was no limitation put on the information.
Last week, the White House said one of the NSC staffers had, in fact, filed a report at the time saying the FBI wanted the information to be kept confidential.
The FBI has stated previously that there was no such limitation put on the information.
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