June 13, 2000
Freeh memo cites 'conflicting duties' in probe
By Jerry Seper
THE WASHINGTON TIMES
FBI Director Louis J. Freeh was reluctant to give up
information to the White House during national security briefings
involving suspected illegal 1996 campaign donations by the
Chinese government, fearful it might compromise an FBI
investigation.
According to a Nov. 24, 1997, memo, Mr. Freeh told Attorney
General Janet Reno that the FBI and the Justice Department had
"conflicting duties" in keeping President Clinton informed on
national security matters and, at the same time, keeping from the
White House "certain national security information" on the FBI's
campaign finance probe.
In the 27-page memo, released last week by the House
Committee on Government Reform, Mr. Freeh said the FBI "faced
this conflict several times during the course of the
investigation" and suggested the appointment of an outside
counsel to probe campaign abuses by foreign countries would help
alleviate the problem.
"Although the appointment of an independent counsel
certainly would not eliminate the difficulty in deciding which
matters should be brought to the attention of the president, it
would lessen the perception problem," he said.
Mr. Freeh urged the appointment of an outside prosecutor in
the case, saying he was "convinced, now more than ever, that this
entire matter should be referred to an independent counsel." Miss
Reno later rejected the proposal.
White House spokesman James Kennedy declined comment on the
memo.
The memo does not discuss any specific national security
concerns, but clearly shows Mr. Freeh and several of his senior
advisers were reluctant to give the White House information the
FBI had developed during the campaign finance probe. The national
security flap had been the subject of congressional concerns in
1997, although the Freeh memo didn't publicly surface until last
week.
The FBI inquiry focused, in part, on efforts by the People's
Republic of China "to gain foreign policy influence by illegally
contributing foreign money to U.S. political campaigns and to the
[Democratic National Committee] through domestic conduits." The
memo said the FBI found "substantial evidence" that huge sums of
money was routed to the DNC by foreign sources "as a result of
the massive fund-raising effort coordinated by the DNC and the
White House."
The Federal Election Campaign Act prohibits any person from
soliciting, accepting or receiving from a foreign person any
"contribution of money or other thing of value . . . in
connection with an election to any political office."
"If the FBI couldn't share national security information
with the White House, then something was obviously wrong," said
Mark Corallo, spokesman for the House committee. "This is yet
another glaring factor that should have compelled the attorney
general to appoint an independent counsel."
The Freeh memo was sent at a time investigators already had
focused on concerns that millions of dollars in illegal donations
from foreign sources had found their way to the 1996 campaign.
FBI Assistant Director Robert M. Bryant had noted in a May
15, 1997, memo to FBI Deputy Director William Esposito that the
White House had taken "direct control" of DNC fund-raising
efforts and there were concerns that both "soft" and "hard" money
donations had been diverted from foreign donors to the DNC.
Soft money is unlimited and goes toward issues rather than
candidates, who receive more-regulated hard-money donations.
Using soft money for direct campaign activities is against the
law.
Charles G. LaBella, former head of the campaign finance task
force, confirmed Mr. Freeh's concerns in a July 16, 1998, report
to Miss Reno, saying there was reason to believe Mr. Clinton and
Vice President Al Gore "knew or had reason to know that foreign
funds were being funneled into the DNC and the re-election
effort."
Mr. LaBella called Mr. Clinton and Mr. Gore key players in a
scheme designed to "raise money by whatever means and from
whomever would give it, without meaningful attention to the
lawfulness of the contributions."
The FBI's concerns over national security briefings surfaced
publicly in 1996, when the White House accused the bureau of
improperly limiting its access to intelligence that China sought
to influence U.S. elections with campaign donations. Almost
immediately, the White House hinted that Mr. Freeh �whose term
expires in 2003 �might be fired.
Mr. Clinton told reporters at the time he had no information
that would call into question Mr. Freeh's ability to do the job
but said he was concerned the FBI had not been upfront with him.
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Shalom, A Salaam Aleikum, and to all, A Good Day.
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