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Star Governmental Affairs - Page A1 Star

January 28, 1997

- Senate Governmental Affairs Committee Investigation -

President Clinton Denies Scheme to
Sell Influence to Foreign Interests

by Howard Hobbs PhD, Syndicated Columnist

WASHINGTON BUREAU - Clinton called the first news conference of his second term to talk about what he had thought would be the balanced budget proposal he will submit to Congress next week. However, president Clinton was being broadcast on CNN (live) when a flood of intense questions from the White House Press Corps focussed on his alleged involvement in selling influence to foreign interests. Clinton denied any direct involvement in selling access to the White House to foreign government and business interests to finance his political campaign.

However, stories appearing in the Los Angeles Times for the past month following the overseas money trail have focussed on John Huang. He was the money contact in the Commerce Department and now in the White House with a top security clearance with connections to Communist China and deep involvement in illegal fund raising activities.The Times has reported identifying $1.2 million of illegal contributions to the Clinton-Gore Campaign. Most of those in large denominations from foreign sources.

On Friday, the White House disclosed there have been 103 'Coffees' that president Clinton has held over 20 months.The Daily Republican, today, has found that of the people who went to these 'Clinton Coffees' they alone, contributed $27,000,000 to the Clinton-Gore Campaign in 'soft-money' in the past 20 months. This indicates there is a very serious problem inside the White House, and much more serious than the White House has been willing to acknowledge.

Today, following the president's news conference,Fred Thompson(R) chairman of the Senate Governmental Affairs Committee told CNN audiences that the Committee had a lot of investigating to do. Thompson said that earlier in American history, president Theodore Roosevelt had testified in a Congressional investigation looking into corporate campaign contributions.

Chairman Thompson, said 'The investigation we are now undertaking is neither a criminal investigation, nor a seminar on campaign finance reform. Although,it involves elements of both. Based upon the information before us, at this time, it is an investigation into improper or illegal campaign finance activities of the 1996 Presidential Campaign and related activities. This means, of course, that any facts they may have occurred before the 1996 Campaign that are relevant to, or shed light upon that Campaign or the operation of our government may be part of our inquiry.'

There are two ongoing investigations already underway in the Senate and the House. In addition the FBI has 35 full-time investigators working on it also.

President Clinton on Tuesday defended his participation in White House receptions with major Democratic donors and insisted administration policy was not for sale. 'Nobody buys a guaranteed result; or should they ever,' Clinton said.

Clinton admitted that the he made a mistake in having the nation's top banking regulator at a White House session with representatives of major banks in a meeting arranged by the Democratic National Committee(DNC). Attempting to make it look like an innocent activity, Clinton said there was 'nothing wrong with his attendance or that of Treasury Secretary Robert Rubin.'

Attorney General Janet Reno is considering whether to name a special prosecutor to investigate Democratic National Committee fund-raising practices; Clinton said it was her decision and declined to answer when asked if he believed such an investigation was necessary.


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