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U.N ambassador nominee Holbrooke agrees to pay ethics fine

February 3, 1999
Web posted at: 1:44 p.m. EST (1844 GMT)

WASHINGTON (AllPolitics, February 3) -- Richard Holbrooke, nominated by President Bill Clinton to be U.S. ambassador to the United Nations, has agreed to pay a $5,000 penalty to settle charges he violated federal lobbying laws.

According to a friend of Holbrooke's who spoke to The Associated Press on the condition of anonymity, the agreement does not require Holbrooke admit wrongdoing.

"He never asked any U.S. government official to do anything other than on behalf of the U.S. government," the friend said. "He's paying only to settle this and get it behind him."

The agreement, which needs final approval from top Justice Department officials, should clear the way for Clinton to finally send Holbrooke's nomination to the Senate.

The alleged civil violation involved Holbrooke's business contacts three years ago with the U.S. Embassy in South Korea. Holbrooke, a former State Department official, was an investment banker at the time. Under federal ethics laws, former government officials are barred from a variety of lobbying contacts with their former colleagues.

The allegation involves contacts Holbrooke had with at least one former State Department colleague at the U.S. Embassy in South Korea within months of his resignation from the State Department in February 1996 to join the investment firm Credit Suisse First Boston in New York.

A friend of Holbrooke would not describe the South Korean incident, but told The New York Times it was "ridiculously minor" and offered no financial reward to Holbrooke or his employer.

Winston Lord, a former assistant secretary of state for East Asia and Pacific affairs, said in an interview last month the criticism of Holbrooke was unsubstantiated. Lord said Holbrooke had contacted U.S. Ambassador James Laney in South Korea while he was a government consultant meeting Korean officials at Lord's request to explain U.S. policy.

"Of course he contacted Ambassador Laney. It would have been ridiculous if he hadn't," Lord said. "It would have been rude, inappropriate and would have undercut the ambassador. I would have called him up and yelled at him if he hadn't contacted the ambassador."

Holbrooke was nominated by Clinton in June to be the U.S. representative to the United Nations. His nomination has been held up pending a review of his financial affairs.

Best known for negotiating the 1995 Dayton Accords that ended the war in Bosnia, Holbrooke currently serves the Clinton administration as a White House special envoy to the former Yugoslavia.

The Associated Press contributed to this report.

RELATED STORIES

Holbrooke accused of ethics violations (12-21-99)

Clinton still wants Holbrooke for U.N. post (09-11-98)

Cabinet shuffle: Richardson, Holbrooke nominated to new posts (06-18-98)



MORE STORIES:

Wednesday, February 3, 1999

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