Time: Fri Jul 25 14:49:49 1997 by primenet.com (8.8.5/8.8.5) with ESMTP id NAA00686 for [address in tool bar]; Fri, 25 Jul 1997 13:59:32 -0700 (MST) by usr07.primenet.com (8.8.5/8.8.5) with SMTP id NAA20829; Fri, 25 Jul 1997 13:57:51 -0700 (MST) Date: Fri, 25 Jul 1997 13:57:18 -0700 To: (Recipient list suppressed) From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: Immunity for 5 Shafts Justice Department (fwd) <snip> > >Arkansas Democrat-Gazette >July 24, 1997 > >Immunity for 5 defies Justice Department > >TERRY LEMONS > >WASHINGTON -- Senate Democrats rebuffed President Clinton's Justice >Department team and agreed Wednesday to extend immunity to five campaign >fund-raising witnesses, including a hostess for former Little Rock >restaurateur Charlie Trie. > In lopsided votes, Democrats and Republicans endorsed providing legal >protection to Trie aide Keshi Zahn and four Buddhist nuns involved in a >California fund-raiser last year attended by Vice President Gore. Justice >Department lawyers objected to the move, saying it could endanger their >criminal investigation. > The development came as Democrats on the Senate Governmental Affairs >Committee got their first chance to quiz Republicans about the GOP's ties >to big-money donations from overseas. Democrats opened the third week of >campaign-finance hearings by mapping out how a wealthy Hong Kong >businessman wired money through a Florida subsidiary to help Republicans. > After months of scrutiny on Democratic donations tied to foreign >sources, committee Democrats examined a $2.1 million loan guarantee made >by Hong Kong's Young Brothers Development Corp. to the National Policy >Forum, a Republican think tank. The deal, made in the closing weeks of the >1994 election campaign, allowed the forum to repay a $1.6 million loan to >the Republican National Committee. > Alan Baron, special counsel for committee Democrats, said the events >illustrated that Republicans share some of the same Democratic >fund-raising problems that the committee explored earlier this month. > "It's a bipartisan problem,'' Baron said. > Republicans countered by saying the party, at the time, thought the >Young Brothers' money originated in the United States. They denied any >effort to funnel foreign money into GOP campaign treasuries. > The deal with Young Brothers, controlled by Ambrose Young, evolved >after pleas from Haley Barbour, then-GOP party chairman who founded the >policy forum. Democrats presented evidence Wednesday about Barbour's >activities in anticipation of his committee testimony, which may occur >today. > Before diving into complex Republican fund-raising questions >Wednesday, the committee ended weeks of deadlock and agreed to give >immunity to Zahn and the four Buddhist nuns. > Granting immunity requires a two-thirds majority in committee, meaning >all nine Republicans and at least two of the seven Democrats would have to >support the measure. In the end, a majority of Democrats favored immunity >despite some reservations about trampling on the Justice Department's >criminal investigation. > The committee voted 13-3 in favor of immunity for Zahn, a Virginia >woman who helped Trie run his international trading business in >Washington. Opposing immunity were three Democrats: Sen. Joseph Lieberman >of Connecticut, Sen. Daniel Akaka of Hawaii and Sen. Richard Durbin of >Illinois. > The senators and Democratic aides said they opposed Zahn's immunity >for several reasons, including indications that she is a bigger player in >the case than the four nuns. > "She seemed to be more crucial to the Justice Department's case,'' one >Democratic aide said. > Investigators want to talk to Zahn about several events involving >Trie, who left Little Rock to become a Democratic fund-raiser. Party >leaders have returned much of the money because of concerns that it >originated overseas. > Like Trie, Zahn has been in China in recent weeks. While Trie has said >he has no plans to leave, committee aides said Zahn apparently wants to >return to the United States and tell her story under immunity. > Zahn worked as a part-time hostess for Trie. She came under scrutiny >after she made a $12,500 donation to Democrats -- more than half her >$22,000 annual salary as a clerical worker in Virginia's Arlington County >government. > In a related development, Secretary of State Madeleine Albright has >asked Chinese leaders to help congressional investigators locate Trie. In >a letter to Rep. Gerald Solomon, R-N.Y., the State Department said the >matter is "a high priority in which Secretary Albright is personally >interested.'' > The committee also agreed in a 15-1 vote to extend immunity to the >four nuns who attended a 1996 fund-raiser with Gore at a California >Buddhist temple. The lone dissenting vote came from Lieberman, who >insisted the committee could move its investigation forward through other >avenues besides immunity. > "We will be able to make the basic case here with the resources >available,'' he said. > Sen. Robert Torricelli, D-N.J., said he hoped the committee's vote >would send a "message'' to the Justice Department that it needs to >cooperate better with the committee. The two groups are conducting >separate investigations in fund-raising abuses, which Durbin said creates >an "impossible situation.'' > Durbin said senators will have to rely on their own judgments rather >than the Justice Department in future immunity questions. > The Democratic concerns followed Tuesday's rebuke by committee >Chairman Fred Thompson, R-Tenn., who said the Clinton-run Justice >Department's stance appeared to be colored by politics. > After Wednesday's vote, Thompson gave Democrats their first chance to >call Republican witnesses to discuss money flowing from Young Brothers and >several GOP-related groups. > Democrats spent most of a day-long hearing examining the policy forum, >which Barbour created in 1993 as a free-standing think tank with close >ties to the Republican National Committee. The next year, Barbour urged >Young to guarantee a $2.1 million bank loan to help run the policy forum. > Young agreed and wired $2.1 million from his Hong Kong company to a >Florida subsidiary, Young Brothers USA, which guaranteed the loan. The >policy forum obtained the bank loan and, in turn, passed along $1.6 >million to pay off the debt to the Republican National Committee. > Democrats introduced a letter from Young indicating that Barbour >"expressed to me'' the loan "is urgently needed and directly related to >the November election.'' > Under election law, foreigners cannot donate to political groups, but >can donate to nonpolitical entities such as the National Policy Forum. >Democrats wondered if Barbour deliberately skirted federal election laws >in the Young Brothers deal to help Republicans in the 1994 elections. > "Money moved in from Hong Kong, it rocketed into an account and >rocketed out to the RNC,'' Baron said. > Barbour has denied any wrongdoing. Ed Gillespie, a Republican >spokesman, said at the time that party leaders thought the transaction >involved "American funds through an American corporation.'' > Democrats insisted that the money helped bankroll a late Republican >push in the closing weeks of the 1994 election, which led to GOP control >of Congress for the first time in four decades. > "What political entity ever turned down $1.6 million a couple weeks >before an election?'' Baron asked. > Republicans disputed the suggestion, saying the debt repayment for the >Republican National Committee went into an account that could only be used >for state campaigns and not federal races for Congress. > "The RNC had sufficient funds to carry out its election plans and did >not in any way modify its expenditures,'' the party said in a statement. > Baron said the money still could have been used for general >party-building and "get-out-the-vote'' activities in 15 states that helped >Republican congressional candidates. None of the money apparently went to >Arkansas, committee documents indicated. > Ultimately, Young's attorney Benton Becker testified, the Young >Brothers ended up losing $800,000 in the deal. Despite Barbour's >assurances to Young that Republicans would "make good'' on any loan, the >policy forum ultimately defaulted on the loan, leading the bank to seize >several certificates of deposit that Young put up as collateral. > Becker said he hoped the Republican National Committee eventually >would ante up the rest of the money. > "It would be my hope that the RNC would give consideration to that,'' >Becker said.. > >This article was published on Thursday, July 24, 1997 >------------------------------------------------------------------------ >Copyright 1997, Little Rock Newspapers, Inc. All rights reserved. >This document cannot be reprinted without the express written permission >of Little Rock Newspapers, Inc. > > >-> Send "subscribe snetnews " to majordomo@world.std.com >-> Posted by: kalliste@aci.net (J. Orlin Grabbe) > > > ======================================================================== Paul Andrew Mitchell : Counselor at Law, federal witness B.A., Political Science, UCLA; M.S., Public Administration, U.C. Irvine tel: (520) 320-1514: machine; fax: (520) 320-1256: 24-hour/day-night email: [address in tool bar] : using Eudora Pro 3.0.3 on 586 CPU website: http://www.supremelaw.com : visit the Supreme Law Library now ship to: c/o 2509 N. Campbell, #1776 : this is free speech, at its best Tucson, Arizona state : state zone, not the federal zone Postal Zone 85719/tdc : USPS delays first class w/o this As agents of the Most High, we came here to establish justice. We shall not leave, until our mission is accomplished and justice reigns eternal. ======================================================================== [This text formatted on-screen in Courier 11, non-proportional spacing.]
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