-Caveat Lector-

XXXXX DRUDGE REPORT XXXXX FRIDAY, JULY 16, 1999 21:02:49 ET XXXXX

WDNC:  PBS SCANDAL ROCKS CLINTON INNER CIRCLE

**World Exclusive**

Just as the Corporation for Public Broadcasting is trying to determine how
many public television stations had swapped donor lists with the Democratic
National Committee, after reports that stations in Washington, New York and
Boston had done so, congressional investigators have started to point
suspicious fingers at the White House!

The DRUDGE REPORT has learned that congressional investigators late on
Friday began considering a possible White House connection in the latest
fund-raising scandal.

The White House is now working to limit any damage that could come from the
developing situation -- damage that could hit Hillary's oldest friends in
Arkansas!

On June 28, 1993, President Clinton nominated Diane Blair to the
Corporation for Public Broadcasting.

Blair, who was 'best person' at the Clintons' wedding and has been one of
Hillary's closest friends,  was later nominated by the president, in 1998
to serve as a Member of the Board of Directors of the corporation.  Blair
was later elected vice chair of its board of directors.

Blair is very close to the Clintons and is said to have spent more nights
at the White House than just about anyone except the first family.

Before joining the Corporation for Public Broadcasting, Blair had a key
role in Bill Clinton's 1992 presidential campaign, working with Betsy
Wright.  Her husband, Jim, was chief counsel for TYSON FOOD INC. and was
the man that advised Hillary Clinton on her remarkably successful
cattle-futures investments.

"We would like to know if Mrs. Blair was at anytime aware that her
affiliates were sharing donor lists with the Democratic National
Committee?" a congressional source told the DRUDGE REPORT late Friday from
Washington.

"And when did she learn they were? ...  We may call her up to The Hill to
ask her a few questions about all of this."

Diane Blair was not immediately available for comment.

Republicans in Congress on Friday increased their calls for a formal
investigative hearing, and Representative W.J.  "Billy" Tauzin [R-LA],
chairman of the subcommittee that oversees funding for public broadcasting,
is leaning towards granting their request, according to sources.

A preliminary hearing will be held on Tuesday to question various officials.

Blair was not on the witness list that was being developed late week.

PBS station KQED-TV in San Francisco on Friday admitted to list-swapping
not only the Democratic National Committee but also Democratic Senator
Barbara Boxer, whose daughter, Nicole, married Hillary Rodham Clinton's
brother, Anthony Rodham, in the White House Rose Garden in 1994.

A spokesman for Boxer declined to comment.

GOP scandal lust cooled slightly late Friday --  after one PBS station said
it had also exchanged donor lists with Republican groups.

Developing...


-----------------------------------------------------------
Filed by Matt Drudge
Reports are moved when circumstances warrant
http://www.drudgereport.com  for breaks and updates
(c)DRUDGE REPORT 1999

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