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<A HREF="http://www.newsmax.com/insidecover.shtml">NewsMax.com: Inside Cover
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Dripity, drip, drip, drip . . .
Om
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May 16, 1999

For the story behind the story...
Saturday May 15, 12:37 PM

Saddam Issues Threat

Earlier this week, Intelligence International LTD, the well regarded
Britain-based intelligence advisory, sent an urgent "Private Alert" to
its world wide subscribers.

Inside Cover has received a copy.

"Saddam Warns of Imminent Showdown with the U.S.," headlines the action
gram.

Intelligence International reports that Iraqi diplomatic sources in
Amman, Jordan, have claimed that Hussein recently sent a memorandum to
"senior staff in the party, state, and the army."

The memo from Hussein asserts that "the showdown with the United States
is not far away."

Hussein is said to be promising a "crucial confrontation that will end
in Iraq's favour."

The memo continues, implying Hussein may use weapons of mass
destruction, "Iraq will confront -- with determination, vigour, and a
devastating response that will be remembered throughout history -- the
latest U.S. attempt to inflict harm on it."

Intelligence International notes that Hussein has made vain threats
before. This time, however, the intelligence advisory suggests Hussein
should be taken seriously because President Clinton has entangled
America's military in Kosovo. Such an entanglement may have provided
Iraq with an "unmissable opportunity," the advisory concludes.

Already NewsMax.com and other sources have reported a massive shift of
American naval and air power from the Gulf -- leaving the region
vulnerable to Saddam.

Top military commanders like General Jack Singlaub(ret.) and Admiral
Thomas Moorer(ret.) stated at NewsMax.com's "America at Risk" Los
Angeles Conference that American naval and air power has also been
significantly drawn down in the Pacific.

They both stated that South Korea is extremely vulnerable to a North
Korean attack in the near future.

Affirming those sentiments this week, General Hugh Shelton, Chairman of
the Joint Chiefs, told Congress that North Korea has engaged in a
forward deployment suggesting a possible attack on the South. He said
American troops have been on a heightened state of alert.

Several defense think tanks, including the Center for Security Policy
headed by Frank Gaffney, have warned that America may be faced with
several, simultaneous crises, including ones with Iraq and North Korea.

Clinton's defense policies have effectively "hollowed out" the American
military. Experts say that the American military would be unable to deal
with one crisis, let alone several.

For more information on NewsMax.com's "America at Risk Conference, Click
Here







Friday May 14, 2:46 AM

Dems Still Chasing Chinagate Campaign Cash

In sworn testimony on Thursday, key Chinagate witness Johnny Chung
charged that Democrats were still trying to get him to cough up more
campaign dollars, despite that fact that his earlier contributions had
to be returned because they were illegal.

The revelation came under questioning by Judicial Watch, the
public-interest legal watchdog group that first broke the Chinagate
scandal with an exclusive 1996 deposition of Democratic National
Committee fundraiser John Huang.

A Judicial Watch press release reports that:

"Vice President Al Gore recently mailed [Chung] an invitation to a
fundraising event in Los Angeles, both at his home and office. Chung was
also recently solicited by the Democratic Congressional Campaign
Committee."

The Gore/DNC pleas for more Chinagate cash came within the last 30 days,
leaving Chung particularly dismayed:

"He was not happy to have received such solicitations from Gore ...
considering what he's gone through in the last two years," Judicial
Watch reported.

"Chung also understood that his political contributions ... helped buy
him access to and favors from the president, the vice president and
first lady. ... A letter sent to him by Mrs. Clinton was very helpful in
opening doors for his fax broadcast business."

In 1995, Johnny Chung contributed $25,000 to a public relations group
created to defend Mrs. Clinton against her Whitewater critics. He also
personally handed a $50,000 donation to Maggie Williams, the first
lady's chief of staff, to help Mrs. Clinton defray the costs of a White
House Christmas party.

Chung's Thursday testimony spelled bad news for AG Janet Reno, as the
generous Democrat donor alleged that his Chinese contacts assured him
the "fix" was in at the Justice Department.

The Judicial Watch session followed Chung's grilling by the House on
Tuesday, which originally had him scheduled for two days on the hot
seat. Inexplicably, Chung's congressional testimony was curtailed after
a single day of questioning.

Judicial Watch will get a second crack at Chung at a later date.



Friday May 14, 1:02 AM

The Lessons of Chung and Willey

When historians ponder the question of how an already impeached American
president managed to stay one jump ahead of the sheriff through
continuing financial scandals, questions about mysterious deaths, new
rape allegations and frightening lies to cover up nuclear espionage,
this is a week they'd do well to focus on.

Just ask Chinagate figure Johnny Chung and alleged Clinton sexual
assault victim Kathleen Willey, whose answer to that question in
accounts offered on Tuesday might be summed up in two words: witness
intimidation.

In testimony before the House Government Reform and Oversight Committee,
Chung revealed that his Chinagate handlers transmitted to him the clear
message, "If you keep your mouth shut, you and your family will be
safe." The threat came from a man Chung identified as Robert Luu, who
also suggested that attorneys' fees could be paid and even a possible
presidential pardon arranged as long as Chung hung tough.

As Chung unraveled some of Chinagate for Congress, Kathleen Willey was
preparing for her first television appearance in 14 months, wherein she
would finger two friends of the president in a scheme to silence her
about what she says is her own Oval Office sexual assault.

Speaking to CNBC's Chris Matthews, Willey said she could positively ID a
person "associated with" Bill Clinton who threatened her family's safety
two days before she testified in the Paula Jones case.

Based on what Willey had told him off-camera, Matthews named Cody
Shearer, a longtime friend of Bill with ties to the White House's
favorite secret policeman, Terry Lenzner.

Willey also charged that former Commerce Secretary Mickey Kantor had
pressured a key corroborating witness to her story, Julie Hiatt Steele,
to change her account -- which kept independent counsel Ken Starr from
including Willey's charge in his impeachment referral.

But Chung and Willey aren't the only Clinton scandal witnesses to
complain about threats of physical violence. Others have gone on the
record with similar stories, much to the chagrin of an American press
corps that pretends not to notice:

"I want to stay alive," Chinagate's Charlie Trie explained while on the
lam in 1997, when asked by an ABC News reporter why he'd fled to China
after his involvement in suspicious payments to the Clinton Defense Fund
and Democratic National Committee became known.

"I could sink their story quicker than they can lie about it, if I could
get into a position where I wouldn't get my head beaten off," Jim
McDougal revealed to an Arkansas pol in 1992 about the Clintons'
Whitewater cover story. Four years later, McDougal sought refuge as a
government witness, only to die under questionable circumstances after
cooperating for 19 months.

"Some very scary things were going on. ... I was getting threats. I had
some saying I would be beaten up. I had some saying I was going to be
killed," said Gennifer Flowers in a July 1997 radio interview,
explaining why she began to tape record her 1990 phone conversations
with Bill Clinton. Flowers named Clinton as the person she believed
responsible for the three break-ins at her apartment.

"I would not cross these people for fear of my life," Monica Lewinsky
told Linda Tripp in October 1997. Tripp's tape recorder would capture
Lewinsky in no fewer than four such expressions of concern for her
physical safety. Tripp herself became fearful after the White House
threatened to "destroy" her.

"I was told that if I didn't cooperate, that they knew I went jogging
and they couldn't guarantee the safety of my pretty little legs,"
revealed Sally Perdue in 1994, when a British reporter questioned her
about attempts to hush up a 1983 Clinton affair. Perdue identifed the
person delivering the threat as Democratic operative Ron Tucker.

"I believe my father was killed to protect Bill Clinton's political
career," said Gary Parks, son of onetime Clinton campaign security chief
Luther "Jerry" Parks, who was gunned down while driving home from a
Little Rock restaurant in 1993. The Parks quote was covered in a 1994
New York Times report on "Clinton haters," which quickly added that
there was no evidence to support the younger Parks' suspicions.

No evidence? Tell it to Johnny Chung and Kathleen Willey.







Thursday May 13, 7:30 AM

Foreign Affairs

A one-time CIA honcho has suggested to Inside Cover that Congress needs
to ask the CIA and National Security Agency for all intercepted
intelligence traffic relating to Bill Clinton's affairs.

Spook suggests that our intelligence agencies probably have reams of
intercepted stuff that foreign agents like the Chinese, Russians and
friendly allies like the British, French and Israelis have been sending
back to their home countries.

Such evidence may show the degree the president has been compromised.

Already, some nations have realized how to capitalize on Bill Clinton's
predilections.

We hear that one Latin American country, getting nowhere with its stodgy
ambassador working through diplomatic channels, figured out a neat way
to improve relations with the sitting president.

This Latin American country, a drug-plagued nation if there ever was
one, decided to replace its crusty ambassador with a very seductive
female to Washington.

Soon after meeting the president, the voluptuous female diplomat scored
diplomatic coup after diplomatic coup. Ties between the Latin country
and ours were brought to a new level.

Inside Cover hears that this Latin American country -- which had been a
target for federal agencies like Customs, DEA and other drug enforcement
agencies -- is getting much better treatment from the feds after new
diplomatic moves were consummated.

Thursday May 13, 7:06 AM

Condoms for Kosovo

The International Planned Parenthood Federation has announced it will
challenge the Vatican's observer status at the United Nations. And now
Vatican defenders are firing back.

It's not so much that the IPPF really objects to a Vatican presence at
the U.N., points out Catholic League President Bill Donohue -- but
instead because the Vatican criticized the IPPF's humanitarian response
to the Kosovo refugee crisis.

It seems that Planned Parenthood sent condoms and morning-after pills to
alleviate the suffering.

Donohue complains, "Only an organization driven by fanaticism would
think that the men, women and children in Yugoslavia who are being
victimized by Slobodan Milosevic are in dire need of condoms."

The next round commences with Donohue vowing to mount a campaign to
expose the "legacy of bigotry" at Planned Parenthood. "The record will
show that this organization has no legitimate place at the public policy
table in any nation," says the Catholic League president.



Wednesday May 12, 6:27 AM

Kathleen Willey Links White House to Witness Intimidation

Breaking a 14-month media silence about the events surrounding her
alleged sexual assault by President Clinton, on Tuesday Kathleen Willey
linked two friends of the president's to separate episodes of witness
intimidation.

Appearing on CNBC's "Hardball" with Chris Matthews, Willey alleged that
former Commerce Secretary and longtime Clinton operative Mickey Kantor
had threatened her friend Julie Hiatt Steele to get her to change her
story.

Willey said that she was persuaded to go public with her own account in
March 1998 only when producers for CBS's "60 Minutes" unearthed Kantor's
involvement and shared the information with her:

"They told me that my friend Julie Steele had been approached by a very
high-ranking member of the Clinton administration questioning her about
the conditions of the adoption of her child. ... I decided that no
woman, no person, no mother should be threatened with her child. And
that was the reason I did '60 Minutes.'"

Willey said that "60 Minutes" producers specifically identified the
administration official to her as Kantor. She told Matthews that "60
Minutes" had promised to expose the cover-up as part of the same episode
where she described her assault by Clinton but instead decided to
withhold the Kantor bombshell.

For the last year, Steele has publicly claimed that it was the Office of
Independent Counsel that had investigated her son's adoption to pressure
her to lie. But in sworn testimony during the April trial of Susan
McDougal on contempt and obstruction charges, Steele admitted that the
OIC had done no such thing.

In August 1997, Steele told Newsweek reporter Michael Isikoff that
Willey informed her of the Clinton assault right after it happened. But
later Steele claimed Willey asked her to lie. The discrepancy played a
role in keeping Willey's assault charge out of the impeachment case
against President Clinton.

In another shocking exchange, Willey established a separate White House
link to the encounter she had with a jogger who threatened her two days
before her January 1998 deposition in the Paula Jones case.

Willey told CNBC's Matthews that she was approached at dawn as she
walked through her Virginia neighborhood by a total stranger who seemed
to know a lot about her personal life:

"He asked me, 'Did you ever find your cat?' And I said, 'No, I haven't,
and we really miss him.' Then he said, 'Did you ever get those tires
fixed on your car?' And I said, 'No,' and that's when the hair started
standing up on the back of my neck."

Willey said the stranger identified her pet by name, saying, "That cat,
he was a nice cat. Bull's-eye was his name, wasn't it?" Willey added,
"He asked me about my children by name. He said, 'How are your children,
Shannon and Patrick?' It was a very insidious thing, and it was meant to
scare me."

The former White House volunteer said she was able to identify the
stranger as someone "associated with" Clinton after being shown photos
by investigators. She would not publicly reveal her tormentor's name,
but Matthews' questions narrowed the field down to three people:

MATTHEWS: Would I recognize the picture?

WILLEY: Yes.

MATTHEWS: Is it someone in the president's family of friends? Is it
somebody related to Strobe Talbott? Is it a Shearer?

WILLEY: I can't say. I've been asked not to by the Office of Independent
Counsel, because they are investigating this.

Derek, Cody and Brooke Shearer are longtime friends of the Clintons who
have been linked in published reports to IGI, the White House's regular
private detective agency run by Terry Lenzner. Brooke Shearer is married
to Deputy Secretary of State Strobe Talbott.

At the conclusion of the hourlong interview, Matthews asked the Virginia
woman, "Would you like an apology from [Clinton]?

Willey answered in one word, "Yes."









Monday May 10, 10:57 PM

Clinton Pondered Treason Loophole

"Perhaps the most prophetic of all the memorabilia Bill gave me were bar
exam notes made in the margin of the 'Nacrelli Bar Review School' book,"
writes onetime bodyguard and Clinton confidant L.D. Brown in his
blockbuster expose, "Crossfire: Witness in the Clinton Investigation."

The Arkansas state policeman was in the habit of collecting mementos
from his time with the young governor, whose rising politcal star was
apparent to almost all who knew him, including new friends like James
Riady and Charlie Trie.

Now, in the midst of his administration's Chinagate nuclear espionage
scandal, Clinton's old law book may be worth further study.

"I know Bill used the book," explains Brown, "and there are many entries
in longhand made throughout the approximately 300 pages of text. The
most telling entries are found in the sections on criminal law and
taxation. In the definition of treason, the passages concerning treason
requiring an overt act as well as involving two witnesses are
underlined."

Brown adds, "The sections on bribery, conspiracy and false pretenses
receive the same treatment. ... Quite appropriately, I think, is the
fact that the only section of the book where there is not one mark, not
one word underlined or note taken, is in the section on -- legal
ethics."



Sunday May 9, 1:52 PM

Mrs. O'Leary's Chinese Cash Cow?

Now that it's clear America's nuclear security has gone up in smoke, it
may be time to borrow a phrase from the Great Chicago Fire and ponder
the role of former Energy Secretary Hazel O'Leary and her onetime cash
cow, Johnny Chung.

Recent media reports have focused on the $300,000 Chung received from
Chinese military intelligence and the $35,000 of that sum (at least)
that found its way into Democratic National Committee coffers.

But the press seems to be suffering a bout of collective amnesia
regarding information on Chung it reported two years ago, which points
to a much more direct financial connection to O'Leary -- and even a
member of the first family.

O'Leary was in charge of security policy at U.S. nuclear labs where
Newsweek, for instance, has now described the Chinese penetration as
"total." Here's what's been on the record about the Chung-O'Leary money
trail for nearly two years:

"No less startling was Mr. Chung's allegation that the Democratic Party
was not the only player with a ravenous appetite for money. He also
described how he was, in effect, shaken down for a $25,000 donation to
Africare, a charitable organization supported by the Energy Secretary at
the time, Hazel O'Leary." (New York Times, Aug. 22, 1997)

Here's how Chung himself put it, in an exchange with NBC's Tom Brokaw
days before the Times report:

BROKAW: Were you surprised when someone could get you in to see Hazel
O'Leary if you would write a check to her favorite charity?

CHUNG: I begin to understand a little bit, but I am still a little bit
surprised.

BROKAW: Yeah. Who picked up the check?

CHUNG: There's one gentleman, present himself as the Energy Department
official, and said I'm here to pick it up, the $25,000 check ...

BROKAW: To Africare?

CHUNG: To Africare.

BROKAW: A charity that the energy secretary supports, she sends over
somebody from the Energy Department to pick it up, and you get a meeting
with her with a very prominent Chinese petrochemical official?

CHUNG: Yes. (Investor's Business Daily -- Aug. 26, 1997)

The Chung-O'Leary money trail deeply troubled even stalwart media FOBs
like Lars-Erik Nelson, who complained in his New York Daily News column
that, "Johnny Chung's story about Hazel O'Leary could put some people in
jail."

Other reports at the time noted that Chung also ponied up $25,000 to a
group formed to attack Sen. Al D'Amato, who was then chairing
congressional hearings into the Clintons' Whitewater land deal. After
that, Chung got to meet the first lady herself, who, Chung says, offered
him the greeting, "Welcome to the White House, my friend."

Of course, news that O'Leary had her hand in Chung's cookie jar came 18
months before we learned that the Chinese had obtained 50 years worth of
our nuclear secrets, with most of them disappearing out the back door on
O'Leary's watch.

NewsMax.com Executive Editor Chris Ruddy was the first to uncover a
possible connection between lax security at our weapons labs and policy
changes implemented through O'Leary.

In his March 11, 1999 report, "Scientist: Clinton Administration Gave
China Top Nuclear Secrets", Ruddy revealed:

"China's efforts culminated with a delegation of Chinese scientists who
visited [Lawrence Livermore National Laboratory] in the winter of 1994,
and another visit by Department of Energy Secretary Hazel O'Leary at
about the same time."

Ruddy's source, a Livermore whistleblower, contended that "the Clinton
administration has, in fact, aggressively sought to provide China with
some of the most closely guarded nuclear weapons technology." At
Livermore, this scientist said, "the administration had facilitated the
transfer of laser technology employed in the process of making nuclear
weapons-grade plutonium."

After O'Leary's 1994 meeting at the California lab, "the scientist
recalled several Livermore scientists in a heated debate over whether
'this type of information [relating to the weapons-enriching laser
process] should be considered for technology transfer' to China."

"The deal with China for the technology transfer was consummated, the
scientist said, sometime later that year after O'Leary's visit, when top
DOE officials, Department of Commerce officials representing Ron Brown,
White House representatives and Chinese government officials met in a
guarded room at the Pleasanton Hilton nearby to Livermore."

Now that the nation's nuclear security has been compromised in an
episode one CIA official described as "worse than the Rosenberg spy
case," Inside Cover wonders why the press has forgotten about Chung's
donations to the pet causes of O'Leary and Mrs. Clinton.

Depending upon how Chung explains those donations in testimony before
the House Government Reform and Oversight Committee this week, the
Clinton administration could emerge as a victim of a Chinese plot to
subvert U.S. national security -- or as a willing co-conspirator.


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