S1442 CONGRESSIONAL RECORD — SENATE February 29, 1996 to extend the Senate Committee’s in- diately, write its report, and let the White House where the White House vestigation into Whitewater indefi- American people hear what the com- counsel could go through them and nitely and if an additional $600,000 for mittee has to say. I believe the Senate provide responsive matters to the com- the investigation should be provided. should get back to the job we were mittee. It was only by chance that I oppose this attempt to extend the elected to do. Get back to meeting the these documents, then, were later dis- hearings indefinitely. The Senate has day to day needs of the American peo- covered in that box that had been sent already spent $950,000 on 277 days of ple. The American public deserves our over to the Peace Corps and then were Whitewater investigation, heard from full attention. put back into the loop so that they more than 100 witnesses, and collected f eventually came to the committee. more than 45,000 pages of documents. A great to-do is made of the fact that Enough is enough. WHITEWATER if you have a fixed date for ending, you Let me tell you what I support. I sup- Mr. SARBANES. Mr. President, I lis- will not get the documents, and that port Senator DASCHLE’s proposal to tened with great interest while my col- to-do is made over documents that we complete the task at hand by extend- league, the distinguished Senator from have gotten. I find it incredible—in ing the hearing until April 3, 1996, with New York, and his colleagues went on other words, these documents are fur- a final report due on May 10, 1996. I also for some length, and I do not intend to nished to us and then an argument is support letting the Independent Coun- match that length at this hour. I do made if you have a fixed date—as we sel do his work. Three federal judges not think that is really necessary, but did, the date of February 29—you will have given him the job of investigating there are some matters that I think not get the documents. I do not know Whitewater and all related matters. He ought to be reviewed with respect to how you square the two. We get the has more than 130 staff members help- this Whitewater matter. documents. They are provided to us. ing him. There is no time limit or First, a great deal is being made Then the assertion is made if you have spending cap on his investigation, so he about these documents that appear, as a fixed date you will not get the docu- will be able to gather facts in a system- though it is a nefarious plot. I under- ments. We have a fixed date. We got atic and unencumbered way and to in- stand that people like to attach sin- the documents. The people provided vestigate Whitewater thoroughly. The ister intentions, but the explanation them to us in response to the request. results of his investigation will be for it may be far more innocent than I do not understand that argument. Ob- made public. If the Independent Coun- that. And I really want to include in viously, logically, it does not hold to- sel finds wrongdoing, he has the au- the RECORD an article that appeared a gether. thority to bring any lawbreakers to few weeks ago in the New York Times Now, the issue here is essentially the justice. By permitting him to do what by Sidney Herman, a former partner of difference between the request of my none of us can do and what none of us Kenneth Starr. Let me quote from it: colleague from New York, Chairman should be doing, we will get a complete D’AMATO, for an open-ended extension Documents that are relevant to an inves- rendering of the facts. That’s the right tigation are found in an unexpected place 6 of this inquiry, and the proposal put thing to do. That’s what I support. months after they were first sought. A forth by Senator DASCHLE for an exten- What I don’t support is using Senate shocking development? Absolutely not. In sion until April 3 for hearings and until committees to play Presidential poli- most major pieces of litigation, files turn up May 10 to file the report. tics. The goal of this proposed exten- late. One side or the other always thinks of When this resolution was first sion is very clear. It’s about Presi- making something of the late appearance. passed, it was passed on the premise dential politics. And, it’s about vili- But these lawyers know the truth. It could that there would be an ending date, fying Mrs. Clinton in the name of Pres- just as easily happen to them. Despite dili- February 29, and the rationale ad- idential politics. This attack on her is gent searches, important papers in large or- vanced in part for that ending date was ganizations are always turning up after the unprecedented. She has voluntarily an- initial and follow-up searches. to keep this matter out of the Presi- swered questions on four occasions dential election year and therefore from the Grand jury and on three occa- Later on he goes on to say: avoid the politicizing of these hearings sions in interviews for the Grand jury, My former partner, Kenneth Starr, knows and the erosion of any public con- numerous written questions, and she all this. As independent counsel in the fidence in the hearings because of a Whitewater investigation, he will take it has been cooperative with the com- into account. But the American people have perception that they were being con- mittee. I know her personally. Like no reason to know that this is a normal oc- ducted for political reasons. many others across the Nation, I have currence. It is not part of their every-day ex- I listened with some amazement ear- deep admiration and respect for her. perience. Reporters really do not have any lier as editorial Like so many other American women reason to know this either, or they may was cited by my colleagues on the she has struggled to meet the demands know and simply choose to ignore it. other side of the aisle in support of of both a career and a family. She is Now, Mr. President, I ask unanimous their position for an unlimited exten- dedicated to her family and she is a consent that article be printed in the sion. Now, that is the position, and I dedicated advocate for children. For RECORD at the end of my remarks. recognize it, of the New York Times. I more than 25 years she worked on be- The PRESIDING OFFICER. Without recognize that the New York Times’ half of children and families which she objection, it is so ordered. posture is for an indefinite extension; discusses in her book ‘‘It Takes a Vil- (See exhibit 1.) but the Washington Post, which was lage’’. In ‘‘Village’’, Mrs. Clinton Mr. SARBANES. I place it in the also cited in support, said today, very shares with the public her passion, con- RECORD simply to make the point, as clearly, ‘‘The Senate should require the viction, and insight, gleaned from her the article does, that the appearance of committee to complete its work, experience as a mother, daughter, ad- documents a considerable period of produce a final report by a fixed date.’’ vocate, attorney, and First Lady. time after they have been requested is, Now, they question the dates that we Mrs. Clinton has truly inspired a gen- in fact, not a shocking development. put forward as perhaps being too short eration of men, women and children. This goes on all the time, as anyone in- a period. They said a limited extension She has worked to raise her own family volved in litigation or document re- makes sense but an unreasonably short and she has worked to protect a gen- quests well knows. deadline does not. They said 5 weeks eration of children. So I don’t support In each instance, of course, one has may not be enough time. They sug- extending the Senate committee’s in- to judge the explanation for the late- gested maybe there should be a little vestigation into Whitewater. appearing documents with respect to extra time, running in the range of We should not ask taxpayers to con- their plausibility, but as I indicated through April or early May. In other tinue subsidizing this round of Presi- when we were discussing Mr. Gearan words, a few more weeks beyond what dential politics and this attack on Mrs. earlier, his explanation, I thought, was the leader has proposed in the alter- Clinton. Instead, I say, let’s get on very straightforward. He said by mis- native, which my distinguished friend with the business of this country and take these had been packed into a box from Nebraska has suggested was a its citizens. The Senate committee he took with him to the Peace Corps. possible way of approaching this mat- should finish its investigation imme- He thought they had remained at the ter.

VerDate Aug 31 2005 06:15 Jun 20, 2008 Jkt 041999 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 J:\ODA16\1996_F~1\S29FE6.REC S29FE6 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS February 29, 1996 CONGRESSIONAL RECORD — SENATE S1443 In any event, so that readers of the the then-minority leader, Senator That official report is in, but hardly any- RECORD can judge for themselves, I ask DOLE. Time and time again he took the one who has been surfing the Whitewater unanimous consent that this Wash- floor to argue that very strenuously, headlines will know of it. It has been ignored ington Post editorial entitled ‘‘Extend by both the Republicans and a media hungry did the same thing in the meetings for scandal. The Stephens report provides a But With Limits,’’ and which contains that were being held between the lead- blow-by-blow account of virtually every as I said the sentence, ‘‘The Senate ership to work out how that inquiry charge involved in the Whitewater saga. Let should require the committee to com- would be done, and did, in fact, press us put the conclusions firmly on the record. plete its work and produce a final re- for a timeframe at one point of only 2 The quotes below are directly from the Ste- port by a fixed date,’’ which editorial or 3 months, as this book indicates. phens report. has been used by some in support of an Now, the book then goes on to say, And he then goes through questions indefinite extension—for the life of me and I am now quoting it again: that were raised about various activi- I cannot understand how one can do ‘‘It escaped no one’s attention that ties and the conclusions of the report. that, can make that argument. I ask an investigation that spilled into 1988 And then goes on to say: unanimous consent that editorial be could only help keep Republicans on The report concludes: On this record there printed in the RECORD at the end of my the defensive during an election year. is no basis to charge the Clintons with any remarks. Both Inouye and Hamilton rec- kind of primary liability for fraud or inten- The PRESIDING OFFICER. Without ommended rejecting’’ and I underscore tional misconduct. This investigation has re- objection, it is so ordered. that. ‘‘rejecting the opportunity to vealed no evidence to support any such claims. Nor would the record support any (See exhibit 2.) prolong, and thereby exploit President Mr. SARBANES. Mr. President, I claim of secondary or derivative liability for Reagan’s difficulties, determining that the possible misdeeds of others. want to point out with respect to both 10 months would provide enough time Stephens’s firm—Pillsbury, Madison & the Gearan and Ickes notes, because to uncover any wrongdoing.’’ Sutro—spent two years and almost $4 mil- the point was raised that we have these I want to underscore to this body lion to reach its conclusions and rec- notes and we got them late in the day. that the Democratic leadership of the ommended that no further resources be ex- The fact is the committee held a full Congress, as that book states, Chair- pended on the Whitewater part of this inves- tigation. day of hearing with Mr. Gearan and a man HAMILTON from the House and Pillsbury, Madison actually asked for full day of hearing with Mr. Ickes with Chairman INOUYE from the Senate, respect to their notes. There was an op- agreed to a defined timeframe as the a tolling agreement from the at the end of December, because portunity to examine their notes, see minority leader, Senator DOLE, had of some new material that had come the contents of their notes, bring them pressed for very, very hard. And, of out. And then subsequent to that we in before the committee, and have a course, the reason was to keep it out of received the billing records of Mrs. hearing with respect to them. the 1988 Presidential election year and, Clinton from the Rose firm. Other mat- The White House has, in effect, now therefore, not turn the inquiry into a ters came of public record, and they ex- responded to every request of the com- political football. amined all of those before they sub- mittee. We have some e-mails to be ob- That was the thinking here last year mitted their final report, which has tained, but that is almost completed. I when we passed Senate Resolution 120 just come in today. In that report they outlined earlier the difficult problems with an ending date of February 29, conclude, as they had concluded ear- that were associated with the e-mails. 1996, which is where we find ourselves lier, that there was no basis on any of First of all, the extraordinary and on- now. That was the thinking. And many the matters they investigated—and erous breadth of the committee’s re- of us have taken the view, and I hold to they went carefully through quite a quest and the fact that the Bush ad- it very strongly, that extending the in- long litany of them— ministration had put in a procedure, a quiry deep into a Presidential election . . . no basis on which to charge the Clin- process at the White House that made year will seriously undermine the the recovery of those e-mails ex- tons with any kind of primary liability for credibility of this investigation and fraud or intentional conduct, nor would the tremely difficult. The White House fi- create a public perception that this in- record support any claim of secondary or de- nally had to bring in a consultant, and vestigation is being conducted for po- rivative liability for the possible misdeeds of they are expending hundreds of thou- litical purposes. I think that is clearly others. sands of dollars in order to provide happening, and I think the effort to This report needs, obviously, to be those e-mails. The ones that have been have the inquiry continue on through carefully examined by my colleagues. provided thus far, the weeks covered, the Presidential election year will con- It is a very important report; $4 mil- have not produced anything. That is in tribute to that. lion of public money was expended on a very real sense a fishing expedition. I was very much interested in an edi- it. And it reached the conclusions It has not produced anything thus far. torial that appeared in U.S. News & which I have just outlined. Now, Mr. President, a lot has been World Report on January 29, by its edi- Mr. President, I think the proposal made of citing the book by Senator tor in chief, Mortimer Zuckerman. that Senator DASCHLE has put forward Mitchell and Senator COHEN with re- I ask unanimous consent that edi- is an eminently reasonable proposal. It spect to having a firm deadline and torial be printed in the RECORD at the is argued, on the one hand, we need their feeling that the Iran-Contra in- end of my remarks. even an indefinite time because we quiry would have worked better with- The PRESIDING OFFICER. Without need to get more material. The mate- out a firm deadline. Of course, as my objection, it is so ordered. rial has now all come—an extraor- colleague from Connecticut pointed (See exhibit 3.) dinary request for material, some of it out earlier, there has been no inquiry Mr. SARBANES. In the course of it delayed, in my judgment, because of conducted in the Senate without a firm he says, and let me just quote it: how far-reaching and onerous the docu- deadline. This is an entirely new and It would be foolish to expect a congres- ment requests were. Other items were different precedent that was going to sional investigation to be above politics. But delayed because people misplaced be established. at what point, in a decent democracy, does them, did not find them. They have Let me just quote from their book: politics have to yield to objectivity? At what point does rumor have to retreat before now been provided to the committee. At the time, the setting of a deadline for The other argument that is made, the completion of the committee’s work truth? In Whitewater that point would seem to have been reached when we have had an which is an interesting argument given seemed a reasonable and responsible com- the record of this committee, is that promise between Democratic members in independent, exhaustive study of the case both the House of Representatives and the under the supervision of a former Republican we now need to await the trial in Ar- Senate who wanted no time limitation U.S. attorney, Jay Stephens. kansas. It was recognized in Senate placed upon the committee, and Republican Of course, he is referring there to the Resolution 120 that the independent Members who wanted the hearings completed study that was commissioned by the counsel was already at work, and it within 2 or 3 months. RTC, from the Pillsbury, Madison, was never anticipated that the com- As an aside, I may note that probably Sutro law firm. mittee would defer its work to the the strongest advocate of a time limi- He goes on a little later in that edi- independent counsel in such a way as tation for the committee’s work was torial to say: to go beyond the February 29 deadline.

VerDate Aug 31 2005 06:15 Jun 20, 2008 Jkt 041999 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 J:\ODA16\1996_F~1\S29FE6.REC S29FE6 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S1444 CONGRESSIONAL RECORD — SENATE February 29, 1996 In fact, when the independent coun- to assume that they will continue to do $950,000 his committee has spent so far plus sel in September of last year indicated so. So then they are not going to be- $400,000 that was devoted to a Senate Bank- to the committee to forbear until some come available to the committee in ing Committee inquiry into Whitewater in unspecified time any investigation and any event. And the committee has to 1994. The partisan motives behind Senator D’Amato’s request could not be more obvi- public hearings into many of the mat- do its work and make its report. ous. ters specified in Senate Resolution 120, We have taken an extraordinary we rejected that in a joint letter which number of depositions. Much of what They then go on along this vein. Senator D’AMATO and I sent to Mr. we are now looking at, which involves They also make the point in con- Starr. We stated: matters that occurred in Arkansas 10 cluding that the independent counsel We have now determined that the special and 15 years ago, had been covered vo- will continue his investigation and, committee should not delay its investigation luminously in the press. I am really al- therefore, the legal and business affairs of the remaining matters specified in Senate most staggered by the fact that we of the President and Mrs. Clinton will Resolution 120. hold a hearing and then it is asserted, be scrutinized by the independent We went on to say: well, new revelations came out at this counsel. We believe that the concerns expressed in hearing. We held a hearing with Ickes. This editorial actually called for end- your letter do not outweigh the Senate’s And everyone said, ‘‘My goodness, we ing on February 29 as the resolution strong interest in concluding its investiga- have discovered that a special team provided. The distinguished minority tion and public hearings into the matters was set up in the White House to deal leader has in effect come forward and specified in Senate Resolution 120 consistent with the Whitewater matter in Janu- said we will not press this immediate with section 9 of the resolution. ary of 1994.’’ A newspaper account in cutoff. We are prepared for the hear- Section 9 is the provision of the reso- early January of 1994 states that a spe- ings to go on for a limited further pe- lution which called for the February 29 cial team under the direction of Mr. riod of time, and for a period of time concluding date for the work of this Ickes was set up. So he comes in. We after that in order to do the report. I committee. have these notes. He comes in and tes- think that is a very forthcoming pro- And we went on to say: tifies. We have the situation in the posal, and I very strongly commend it Accordingly, we have determined that the committee where the establishment of to my colleagues on the other side of special committee will begin its next round this team and him as the head of it is of public hearings in late October of 1995. the aisle. This round of hearings will focus primarily considered as a new discovery when Mr. President, I yield the floor. there is a newspaper story from 2 years on the matters specified in section (1)(b)(2) of EXHIBIT 1 Senate Resolution 120, and through the re- earlier stating that such a team was mainder of this year the special committee being set up and that he would head it [From the New York Times, Jan. 27, 1996] will investigate the remaining matters speci- up. DOCUDRAMA fied in Senate Resolution 120 with the inten- Interestingly enough, the article that (By Sidney N. Herman) tion of holding public hearings thereon be- was written on the day after the hear- ginning in January 1996. Documents that are relevant to an inves- ing paralleled the article that was tigation are found in an unexpected place six That was our position then. I thought written 2 years earlier. The January months after they were first sought. A it was a correct position. It was not an- 7th, 1994—not 1996, 1994—article in the shocking development? ticipated that the committee would Washington Post stated, and I quote: Absolutely not. In most major pieces of defer its work until after the inde- With the start of the new year, the White litigation, files turn up late. One side or the pendent counsel has pursued his trials. House launched a major internal effort to other always thinks of making something of It is now said this trial. But he has fight back against mounting criticism of the the late appearance, but these lawyers know other trials in the offing as well, all of way it has handled inquiries into President the truth: it could just as easily happen to which, of course, would serve to carry Clinton’s Arkansas land investments. A them. high-powered damage control squad was ap- Despite diligent searches, important pa- this inquiry on into infinity. pointed under the direction of new Deputy Just to underscore it with respect to pers in large organizations are always turn- Chief of Staff, Harold Ickes, and daily strat- ing up after the initial and follow-up Mr. Hale because we, the minority, egy sessions began. searches. How many times have you looked have pressed repeatedly throughout for That is in 1994. Then we get notes for something on your desk and couldn’t find bringing Mr. Hale in, seeking through from Ickes about a meeting of the spe- it, only to have it appear right under your subpoena to obtain his documents—and cial strategy session that he is heading nose later? Happens all the time. that has consistently been delayed— up, and that is treated as though we Indeed, as every litigator knows, there is this issue was considered at a hearing discovered something new. In fact, the nothing worse than having an important on the 28th of November, and Chairman document show up late. You’ve only high- article reporting on the hearing par- lighted its absence for your opponent. If you D’AMATO said the following. I now alleled the article written 2 years ear- know where it is, it is far better to include quote: lier. it in the initial delivery of relevant papers, I would like to bring him, Hale, in sooner That is what we have been going where it gets mixed in with the rest of the rather than later so that he can testify and through; I mean a replowing of mate- morass. Why red-flag it by holding it back? so that he can be examined. If we drag this, rial that has already been available My former partner, Kenneth Starr, knows if this matter is dragged out into February all this. As independent counsel in the or later, I believe legitimate questions can generally in the press and out to the public. In fact, the Atlanta Constitu- Whitewater investigation, he will take it be raised as to why bringing him in so late into account. and getting into next year and the political tion in the editorial that my colleague, But the American people have no reason to season—and I think that is a very legitimate Senator PRYOR, cited of February 15 know that this is a normal occurrence; it is concern of this committee—both Democrats states: not part of their everyday experience. Re- and Republicans and I would like to avoid The Senate’s Watergate hearings of 1973 porters really don’t have any reason to know that. and 1974 were momentous delving into White this either. Or they may know, and simply It certainly was a legitimate concern House abuses of power and leading to the res- choose to ignore it. ignation of the disgraced President and the and the effort to press to move on the Last summer, notes that were critical to imprisonment of many of his aides. They Hale matter never was realized. The the celebrated libel suit brought by Jeffrey lasted 279 days. Next week, Senator Alfonse Masson against the writer Janet Malcolm minority staff continually sent memo- D’Amato, Republican of New York and his appeared in her private study, years after randa to the majority about Hale and fellow Whitewater investigators, will surpass they were first sought. I recall that dis- nothing was done about it. We now find that mark. Today is the 275th day, and they covery being treated as an interesting hap- ourselves finding this being used as an have nothing anywhere near conclusive to penstance, nothing more. argument to defer the hearings to the show for their labors. To put matters in con- When documents show up belatedly, even other side of the trial. As I said, the text, all they have to ponder is a fairly ob- scure 1980’s real estate and banking scandal in private quarters, there is simply nothing trial is not going to be in secret. So the unusual about it. matters developed at the trial will be, in Arkansas. With the February 29th expira- tion date for the special panel staring him in EXHIBIT 2 I can assure you, on the public record the face, Senator D’AMATO has the effrontery [From the Washington Post, Feb. 29, 1996] and available to the public. to ask the Senate for more time and money Many of the witnesses sought have to continue drilling dry investigative holes. EXTEND, BUT WITH LIMITS indicated they will take the fifth Specifically, he wants open-ended authority We noted the other day that the White amendment. And there is every reason and another $600,000. That is on top of House—through its tardiness in producing

VerDate Aug 31 2005 06:15 Jun 20, 2008 Jkt 041999 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 J:\ODA16\1996_F~1\S29FE6.REC S29FE6 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS February 29, 1996 CONGRESSIONAL RECORD — SENATE S1445 long-sought subpoenaed documents—has It would be foolish to expect a congres- Street Journal, what you have is smoke and helped Senate Banking Committee Chairman sional investigation to be above politics. But no fire. No Whitewater wrongdoing to cover Alfonse D’Amato make his case for extend- at what point, in a decent democracy, does up, no incriminating documents to be stolen, ing the Whitewater investigation beyond to- politics have to yield to objectivity? At what no connection between the Clintons and any day’s expiration date. If one didn’t know any point does rumor have to retreat before illegal activities from the real-estate busi- better, one might conclude that the adminis- truth? In Whitewater that point would seem ness failure and the web of political and legal tration’s Whitewater strategy was being de- to have been reached when we have had an ties known as Whitewater. vised not by a White House response team independent, exhaustive study of the case But wait. What about the time sheets but by the high command of the Republican under the supervision of a former Republican showing the amount of legal work that Hil- National Committee. U.S. attorney, Jay Stephens, a man whose lary Clinton performed for the failed S&L? However, despite the administration’s credibility is enhanced by the fact that he Surely we have some flames there? Again, many pratfalls since Whitewater burst on- was such a political adversary of the Clin- no. Her role, says the Stephens report, was stage, Sen. D’Amato and his Republican col- tons that his appointment provoked Clinton minimal. Mrs. Clinton did perform real-es- leagues have not provided compelling evi- aide George Stephanopoulos to call for his tate work in 1985 and 1986 pertaining to an dence to support the entirely open ended removal. Yes? No. That official report is in, option for about 2 percent of the land, but as mandate they are seeking from the Senate. but hardly anyone who has been surfing the the report says, that was at most related There are loose ends to be tied up and other Whitewater headlines will know of it. It has only tangentially to the acquisition itself. witnesses to be heard, as Republican Sen. been ignored by both the Republicans and a Mrs. Clinton did not play a legal part in the Christopher Bond said the other day. But media hungry for scandal. The Stephens re- original acquisition of the land, known as dragging the proceedings out well into the port provides a blow-by-blow account of vir- , although the Rose Law Firm presidential campaign advances the GOP’s tually every charge involved in the White- did. Both sides pointed out that the prin- political agenda; it doesn’t necessarily serve water saga. Let us put the conclusions firm- cipals, as opposed to the lawyers, put to- the ends of justice or the need to learn what ly on the record. The quotes below are di- gether the deal. The lawyers did only the made the Savings & Loan rectly from the Stephens report. scrivener work, and if this transaction was a of Arkansas go off the tracks at such enor- Question 1: Were the Clintons involved in sham, there is ‘‘no substantial evidence that mous cost to American taxpayers. The Sen- the illegal diversion of any money from the the Rose Law Firm knowingly and substan- ate should allow the committee to complete failed Madison Guaranty Savings & Loan, ei- tially assisted in its commission.’’ As for the option, the report says there is the investigative phase of its inquiry, includ- ther to their own pockets or to Clinton’s 1984 no evidence that Mrs. Clinton knew of any il- ing a complete examination of the Clinton’s gubernatorial campaign? ‘‘On this record, legalities in this transaction: ‘‘The option involvement with the defunct Whitewater there is no basis to assert that the Clintons did not assist in the closing of the acquisi- Development Corp. and their business rela- knew anything of substance about the tion. It...was created many months after tionships with other Arkansas figures in- McDougals’ advances to Whitewater, the the transaction closed. The option...does volved in financial wrongdoing. But the Sen- source of the funds used to make those ad- not prove any awareness on the part of its ate should require the committee to com- vances, or the source of the funds used to author of Ward’s [Madison’s partner] ar- plete its work and produce a final report by make payments on bank debt....For the rangements with Madison Finan- a fixed date. relevant period (ending in 1986), the evidence cial....While Mrs. Clinton seems to have Democrats want to keep the committee on suggests that the McDougals and not the had some role in drafting the May 1, 1986, op- a short leash by extending hearings to April Clintons managed Whitewater.’’ tion, nothing proves that she did so knowing 3, with a final report to follow by May 10. A Question 2: What of money diverted to the it to be wrong, and the theories that tie this limited extension makes sense, but an unrea- campaign? No evidence has been unearthed option to wrongdoing or to the straw-man sonably short deadline does not. Five weeks that any campaign worker for Clinton knew arrangements are strained at best.’’ may not be enough time for the committee of any wrongdoing pertaining to any funds Rep. James Leach’s spokesman asserts to do a credible job. Instead, the Senate that might have come out of Madison into that ’s minimal work on the should give the committee more running Clinton’s campaign. option put her ‘‘at the center of a fraudulent room but aim for ending the entire pro- Question 3: Did taxpayers suffer from deal,’’ and D’Amato says that her billing ceedings before summer, when the campaign Whitewater through Madison’s losses on the records show tremendous inconsistencies season really heats up. That would argue for investment? No. Whitewater did not hurt with her previous statements on the time permitting the probe to continue through Madison, the possible exceptions being a cou- she spent on Whitewater. Fraud? The only April or early May. ple of payments involving James and Susan fraud lies in these congressional statements; What the Senate does not need is a Demo- McDougal. The report says the Clintons they are a political fraud on a credulous pub- crat-led filibuster. Having already gone bail knew nothing about the payments. lic. On the role of real-estate lawyers, I must for the Clinton White House, often to an em- Question 4: Did the Clintons make any endorse the Stephens judgments here from barrassing degree, Senate Democrats would money? The report says they did not; in- my personal business experience of thou- do themselves and the president little good stead, they borrowed $40,000 to put into sands of real-estate transactions. Never, not by tying up the Senate with a talkathon. Whitewater and lost it. Question 5: What of the charge from David once, have my lawyers drawing up legal doc- Better that they let the probe proceed. Give Hale, former municipal judge and Little uments determined the business terms or the the public some credit for knowing a witch Rock businessman, that pres- appropriateness of the price. hunt and a waste of their money if and when sured him to make an improper Small Busi- It is appalling that the smoke and smear they see one. And that, of course, is the risk ness Administration loan of $300,000 to Susan game has been played so long by the Repub- Sen. D’Amato and his committee are taking. McDougal? As to the $300,000 loan to Mrs. licans and the media that everyone is tagged The burden is also on them. McDougal, ‘‘there is nothing except an un- with some kind of presumption of guilt rath- EXHIBIT 3 substantiated press report that David Hale er than a presumption of innocence. The dou- [From the U.S. News & World Report, Jan. claims then-Governor Clinton pressured him ble standard of judgment is well illustrated 29, 1996] into making the loan to Susan McDougal.’’ by the performance of those standard-setting newspapers, the New York Times and the THE REAL WHITEWATER REPORT The charge lacked credibility in any event. It was made when Hale sought personal Washington Post. The Times originally (By Mortimer B. Zuckerman) clemency in a criminal charge of defrauding broke the Whitewater story on its front page Have you no sense of decency, sir, at long the SBA. with a jump to a full inside page. What did last? Have you left no sense of decency? What’s left? Nothing. The report con- it do with Stephens’s report? Ran it on Page Forty years ago, Joseph Welch, a venerable cludes: ‘‘On this record there is no basis to 12, in a 12-inch story. The Post’s priorities Boston lawyer, thus rebuked Joe McCarthy charge the Clintons with any kind of pri- were so distorted that it mentioned the find- in the Army-McCarthy hearings and stopped mary liability for fraud or intentional mis- ings in only the 11th paragraph of a front- his reckless persecution of a naive but inno- conduct. This investigation has revealed no page story devoted to a much less important cent young man. How one longs for a Joseph evidence to support any such claims. Nor Whitewater subpoena battle. Most other Welch to emerge in the middle of the ex- would the record support any claim of sec- major papers ran very short stores on inside traordinary affair now known as Whitewater! ondary or derivative liability for the possible pages, and the networks virtually ignored The parallels between Sen. Alfonse misdeeds of others.’’ the report. D’Amato’s investigation of a land deal in Ar- Stephen’s firm—Pillsbury, Madison & The press has slipped its moorings here. It kansas and McCarthy’s investigation of com- Sutro—spent two years and almost $4 mil- seems to be caught in a time warp from the munism in the Army are hardly exact, but lion to reach its conclusions and rec- Nixon-Watergate era. The two questions there is an uncanny echo of 1954 in the fever ommended ‘‘that no further resources be ex- then—what did the president know and when of political innuendo we are now experi- pended on the Whitewater part of this inves- did he know it?—were at the very heart of encing and in the failure of an excitable tigation.’’ Amen. the matter. The two questions now—what press to set it all in proper perspective. So when you cut through all the smoke did the president’s wife know and when did Then, as now, the public found itself lost in from D’Amato’s committee and almost she know it?—seem a childish irrelevance by a welter of allegation, reduced to mumbling hysterical press reports such as those ema- comparison. The time, money, and political the old line about ‘‘no smoke without fire.’’ nating from the editorial page of the Wall energy spent barking up the wrong tree are

VerDate Aug 31 2005 06:15 Jun 20, 2008 Jkt 041999 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 J:\ODA16\1996_F~1\S29FE6.REC S29FE6 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S1446 CONGRESSIONAL RECORD — SENATE February 29, 1996 quite amazing. The press gives the impres- was the guardian. Russian officers resent the wants to spend more on defense, particularly sion that it has invested so much capital in dimunition of national power as much as when social budgets are crippling national the search for a scandal that it cannot drop they are frustrated by the drop in their economies. It seems inevitable, therefore, it when the scandal evaporates. The Repub- units’ ability to perform. Inefficiency is so that armies must grow smaller but become licans give the impression that if one slander glaring that self-appointed volunteer forma- all-regular if they are to meet international does not work, they will try another. No tions, often calling themselves ‘‘Cossacks,’’ standards of efficiency. wonder the nation holds Congress, the White are springing up. The French appear to have accepted that House and the media in such contempt; the Military disgruntlement in circumstances logic. people know that the press seems to be act- of political weakness always bodes ill. The President Jacques Chirac is about to be ad- ing like a baby—a huge appetite at one end need to put the former Soviet armed forces vised that France should withdraw the 1st and no sense of responsibility at the other. on a proper footing is now urgent. Armed Division, its main contribution to the We have a topsy-turvy situation here. The Poland, where the army is a revered na- Franco-German Eurocorps, from Germany Republicans win the case on merit over bal- tional institution, still operates a successful and disband several of its regiments, to- ancing the budget but are losing it politi- conscription system. Neighboring states, gether with many others in metropolitan cally on the basis of public perception. The such as Belarus and Ukraine, are laboring to France. The army would be halved. Clintons have the better case on Whitewater decide what sort of army they want. They That may make good military sense, but it but are losing it politically because of smear look to the West for advice. is likely to cause a political storm. Demo- and slander, a situation compounded by their The British Defense Ministry held a con- cratic France, like Germany, harbors sus- defensive behavior. The media seem unwill- ference in London last year to explain the picions of regular forces. They are thought ing to focus on the substance of either issue. options to them. The British model of all- to be anti-popular and all too readily turned So much for a responsible press! ‘‘regular’’—that is, career or volunteer— against elected governments. Mr. WARNER addressed the Chair. forces is much admired, but is too expensive French history, like Germany’s makes for many. Conscription staggers on but does such fears realistic. The PRESIDING OFFICER. The Sen- not produce combat units worth the money Napoleon III came to power through a mili- ator from Virginia is recognized. they cost. tary coup mounted with long-service troops. f The crisis in France and Germany is of a Charles de Gaulle faced another coup mount- different order. ed by the Foreign Legion in Algeria. The EUROPEAN ARMIES DOWNSIZE Conscription in France, since the French Foreign Legion has never been allowed to Mr. WARNER. Mr. President, I read Revolution, has always been given an ideo- serve in mainland France during peacetime with great interest an article in the logical value. Military service, the French because of fears about its loyalty. believe, teaches the ‘‘republican virtues’’ of Washington Times a few days ago. I In Germany, which already has some all- equality and fraternity, besides patriotism regular units, the public is probably no more ask unanimous consent to have it and civic duty. ready to face a transition to the British sys- printed in the RECORD. There have been ups and downs in the sys- tem than is Mr. Kohl. The paradoxical out- There being no objection, the article tem: exemptions for the well-educated, sub- come may be to leave Germany with the was ordered to be printed in the stitution for the rich. Since 1905, however, least efficient of armies among major Euro- RECORD, as follows: all fit young Frenchmen have had to serve a pean states. year or two in the ranks. [From the Washington Times, Feb. 26, 1996] German generals, who increasingly count The logic is different from that held by on existing all-regular units to fulfill their EUROPEAN ARMIES LOSE SIZE, EFFICIENCY Britons, who pine for the days before 1961, NATO commitments, will not be pleased. CONSCRIPTION NOT WORKING; ALL-VOLUNTEER when conscription was abolished. They see it They are likely to press for an end to con- TOO EXPENSIVE as a recipe for an end to inner-city scription but unlikely to get it. (By John Keegan) hooliganism. In France it has a higher mo- The difficulties involved in a change from tive. Military service makes Frenchmen into conscript to regular forces are not easily un- LONDON.—The state may not be withering citizens. derstood in Britain, nor is the political de- away, as Karl Marx predicted it would, but In Germany, conscription also acquired an bate it causes. The British take their sys- Europe’s armies are. ideological justification in the post-Hitler tem, together with the political stability of Only seven years ago, Europe was awash years. their armed forces, for granted. with combat units. Now they are so thin on Under the kaiser, it was intended to What is not perceived is that such stability the ground that governments can scarcely produce the biggest army in Europe, but also is the product of 300 years of unbroken con- meet their military commitments. And the to make German youth respectful of their stitutional government, during which the of- situation is getting worse. betters and obedient to all authority. The ficer corps has completely integrated with The problem is conscription. Young Euro- imperial officer corps took trouble to see civil society. There is, indeed, no ‘‘officer peans do not want to perform military serv- that their authority was obeyed. Regular of- corps’’ in Britain, where soldiering is seen as ice, even for as little as a year, now the ficers remained a caste apart from civilians, a profession akin to others. norm. even under Hitler. In Germany and France, with their dif- Paradoxically, the generals are not keen When postwar West Germany rearmed, its ferent traditions, it may not take 300 years on conscription either. As a result, the big democratic government harbored under- to change the relationship between army and armies, such as those of France and Ger- standable fears of creating such an office society, but it will still take some time. In many, are planning either to increase the corps again. It saw in conscription a check the former Soviet bloc, time may not be on proportion of volunteers or to scrap con- against military authoritarianism. the military reformers’ side. scription altogether. Conscripts were guaranteed their civil France announced Thursday the most rights, military law was abolished, and con- Mr. WARNER. Mr. President, this ar- sweeping changes in its military since it de- scientious objection was made easy. ticle was written by John Keegan of veloped nuclear weapons nearly 40 years ago, Too easy, it has proved. the London Daily Telegraph in which saying it will shrink its armed forces by one- More than half of the 300,000 annual he stated the historical perspective of third in six years and eliminate the draft. conscripts now opt for alternative, non-mili- how the principal European nations The French want a force of 350,000 by 2002, all tary service. There are simply not enough and Great Britain have, through the of it volunteer. men to keep units up to strength. years, raised their Armed Forces, and Smaller armies in Europe have taken simi- What makes things worse is that Chan- lar steps. The Netherlands will call up no cellor Helmut Kohl, with his passion for Eu- how the future portends that they are new conscripts and release all those in serv- ropean integration, is pushing for more going to depart from these time-hon- ice by Aug. 30. Belgium stopped conscription inter-allied units, with Germans serving be- ored methods, and, as a consequence, in 1993. Austria, not part of NATO, is talking side French, Spanish and Belgian soldiers. the likelihood of their level of man- of substituting an armed police for its army. Spain retains conscription, though the power could significantly drop in the In the former Soviet bloc, the situation is short term of service makes its army of lit- coming years. confused at best, chaotic at worst. tle use. If French and Belgian troops are to I promptly sent a letter to the Sec- Russia’s problem is that young men of be regulars in the future, the difference in retary of Defense, the Honorable Wil- military age do not report for the call-up. In quality between them and their German and some military regions, the proportion of Spanish comrades-in-arms will become an liam J. Perry, addressing my concerns. those who do is as low as 10 percent, and embarrassment. The letter said: they tend to be unqualified—often dropouts The solution may be to make all soldiers DEAR MR. SECRETARY: I want to bring to who cannot find a place in the new free-en- regulars, to go for what Europeans increas- your attention the enclosed article, ‘‘Euro- terprise economy. That does much to explain ingly call ‘‘the British system.’’ The problem pean Armies Lose Size, Efficiency,’’ which the poor performance of Russian units in is cost. appeared in the ‘‘Washington Times’’ on Feb- Chechnya. Regulars are at least twice as expensive as ruary 26. The Russian army has been humiliated by conscripts, requiring either a bigger defense According to this article, European na- the collapse of the Soviet empire, of which it budget or smaller armed forces. No one tions—many of which are Members of

VerDate Aug 31 2005 06:15 Jun 20, 2008 Jkt 041999 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 J:\ODA16\1996_F~1\S29FE6.REC S29FE6 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS