Freeh: Memo Compromise A Possibility

Espy Independent Counsel Smaltz also testifies before House committee

WASHINGTON (AllPolitics, Dec. 10) -- FBI Director Louis Freeh, back on Capitol Hill today for more House committee questioning, indicated a compromise may be possible for the release of a memo he wrote to Attorney General Janet Reno urging her to appoint independent counsels to investigate the fund-raising of the president and vice president.

Freeh told the House Government Reform and Oversight Committee the attorney general had instructed him to inform the panel that she "would be pleased" to discuss the issue with chairman Dan Burton and his counsel.

At the beginning of this week, Reno and Freeh both refused to hand over the subpoenaed document, even in censored form, arguing it that it would provide a "road map" of the ongoing investigation. Several Republican members of the panel had threatened to bring contempt of Congress citations against them if an agreement was not reached.

Freeh said he would like to see the dispute over the memorandum settled. "It is a much more preferable course to see if we can work that out and avoid what is really not only a constitutional issue, but an issue that will impact adversely on what you expect to get from us, which we want to give you in many cases, and what we have to protect at some critical parts of an ongoing case," he said.

The FBI director revealed the full specifics of his memo have not yet been leaked, despite news reports suggesting its content. "The road map, as you describe it, and as I described it, is not out there, which is why I said yesterday [Tuesday] I don't believe anybody has this memo in the press or you would be reading things that I know they would report, which have not been reported."

On Tuesday, Reno and Freeh were hauled before the committee to answer questions about their public disagreement on the independent counsel issue. Though they appeared separately, both provided united testimony, insisting they have a good working relationship and downplaying the conflict as understandable in a complex criminal investigation.

Freeh's testimony today echoed those themes as he refused to budge from his earlier statements that his boss based her decision solely on the law as she saw it.

FBI frustrations

Freeh did acknowledge some frustration on the part of his agents over the Justice Department's timing of interviews, particularly for government officials covered by the independent counsel statute.

"There were times when the investigators felt that interviews and the focus of interviews should move quicker than the attorneys who were managing the inquiry or the grand jury otherwise decided. And that was the source of some frustration at different points," Freeh said.

"But as I mentioned, no one was not interviewed, and nobody was insulated from being interviewed because of those disagreements," he said.

Burton concentrated on one press account that reported veteran agent Ray Wickman quit after Reno insisted he turn over the names of secret China contacts.

Calling the allegation "nonsensical" if only because it doesn't fit with FBI operating procedures, Freeh said he had no knowledge that Wickman left his post for any other reason but to retire.

"[Wickman] has never told me -- and I think he has the kind of relationship with me that he could -- he's never told me or complained to me or said anything to me which indicated he was leaving for any other reason except that he wanted to retire. I extended him beyond the mandatory retirement age of 57 so he could stay," Freeh said. "Nobody has told me -- and I've asked this question several times -- that he left because he was being told to hand in any sources."

Insisting it was an important charge, Burton requested that Freeh follow-up on the issue and report back to the committee. "If it's sensitive information that should not be made public, you may rest assured that it will not be made public. But I'd like to know about that. We're cleared for top secret," the chairman said.

Smaltz testifies

While Freeh failed to provide Republicans on the committee with testimony critical of Reno and her Justice Department, a second witness was happy to do so.

Independent Counsel Donald Smaltz, who is investigating charges involving former Agriculture Secretary Mike Espy and Tyson Food Inc., recounted incidents of Justice Department prosecutors trying to control his probe.

Smaltz said he secured the conviction of Espy's former chief-of-staff, no thanks to Reno's department. "These results came in the face of strong opposition" from the Justice Department, Smaltz told the committee.

Burton asked if the Justice Department was "deliberately trying to impede your ability to prosecute justice in a fair and efficient way."

Smaltz replied, "That's the effect."

The investigation of Tyson Food also "changed direction somewhat" after the Justice Department involved itself, Smaltz testified.

"Was I unhappy? The answer is yes," he said. "We weren't going in the direction I thought it was appropriate to go." Smaltz would not elaborate, saying the investigation was ongoing.

Democrats accused the Republican Smaltz of having a partisan agenda, bringing up past ethical charges against the lawyer.

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Wednesday Dec. 10, 1997

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• Arkansas Lawyer Says He Arranged Lippo Work For Hubbell
• Mrs. Clinton Marks Human Rights Anniversary
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• Judge Sets Feb. 23 Trial For Tucker
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