[Congressional Record Volume 142, Number 29 (Wednesday, March 6, 1996)]
[Senate]
[Pages S1552-S1567]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WHITEWATER DEVELOPMENT CORP. AND RELATED MATTERS--MOTION TO PROCEED
Mr. BENNETT. Mr. President, I ask unanimous consent that the Senate
now proceed to the consideration of calendar No. 341, Senate Resolution
227 regarding the Special Committee on Whitewater.
The PRESIDING OFFICER. Is there objection?
Mr. SARBANES. I object.
The PRESIDING OFFICER. Objection is heard.
Mr. BENNETT. Mr. President, I now move to proceed to calendar 341,
Senate Resolution 227.
The PRESIDING OFFICER. The question is on the motion.
Is there further debate?
Mr. MACK addressed the Chair.
The PRESIDING OFFICER. The Senator from Florida.
Mr. MACK. Mr. President, we are here today primarily because the
White House has not been dealing with the special committee in good
faith. I know that there are those who would accuse this committee of
conducting a political witch hunt in an election year. But I submit
that there are legitimate and powerful reasons to be investigating
Whitewater Development Corp. and all of the related matters.
At the outset, it should be made clear that the main reason this
committee needs additional time is the abject failure of this
administration to cooperate. Contrary to all of their public
statements, I believe the White House has been actively engaged in a
coverup. They have repeatedly refused to turn over relevant evidence
and have often failed to remember key facts under oath.
To give just one example, Bruce Lindsey was asked on numerous
occasions whether he had produced all relevant documents to the
committee, and he insisted under oath that he had. In particular, the
committee asked about any notes he might have taken during the November
5, 1994, meeting of the Whitewater defense team. That is the same
meeting where William Kennedy took notes, and we almost had to go to
court to obtain them. Last Friday--that is the very date the special
committee's funding was set to expire--he turned over his clearly
marked notes of the November 5 Whitewater defense team meeting.
The American people deserve better than that. Again, this is only one
example--where Bruce Lindsey was asked over and over again whether he
had taken notes during that November 5 meeting, and we were told over
and over again that he had not. On the day this committee's funding
expired, they turned over these notes of the meeting.
In my opinion, the White House has done everything in its power to
hide the truth. That is why we are here asking for additional funds to
continue the committee's work.
Mr. President, I suspect that over the next several hours we
obviously will hear from both sides of the aisle on this. But on our
side of the aisle, I expect that most of our Members who participated
in these hearings will probably do as I have done; that is, to focus my
attention on some specific areas where I focused my attention during
the committee hearings. So my comments now will be somewhat focused on
the behavior of the White House officials immediately after Vincent
Foster's death.
The death of White House Deputy Counsel Vincent W. Foster, Jr., on
July 20, 1993, marked the first time since Secretary of Defense James
Forrestal died in 1949 that such a high-ranking
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U.S. official took his own life. Mr. Foster was a close friend of both
the President and Mrs. Clinton, and provided legal counsel to them on a
number of sensitive personal matters, including Whitewater. Given Mr.
Foster's sensitive position within the administration and his close
personal friendship with the Clinton's, there were legitimate questions
to be asked about the way he died.
The reason I raise this is because I have a feeling that those who
may have just casually been observing or watching these hearings may
have asked the question, What is all the concern about how the White
House handled the review of documents in Vince Foster's office? I have
already indicated that he was a personal friend of the Clintons, but
there are questions that would be raised about any suicide of an
individual in this kind of position.
Questions, for example, could be: Was there blackmail involved? Was
he a victim of a crime that had something to do with his position?
Could he have been the subject of extortion? Was our national security
compromised in any way? Officials would certainly be concerned with
finding out the answers to these questions as soon as possible.
In the days following his death, White House officials--in
particular, members of the White House counsel's office--searched the
contents of Mr. Foster's office and at the same time prevented law
enforcement officials from conducting a similar search. In doing this
and later covering it up, they have come to look like the guiltiest
bunch of people I have ever seen.
Section (1)(b)(1) of Senate Resolution 120 authorizes the committee
to inquire ``whether improper conduct occurred regarding the way in
which White House officials handled documents in the office of White
House Deputy Counsel Vincent Foster following his death.''
Pursuant to this directive, the committee conducted 69 depositions
and held 17 days of public hearings to investigate the actions of White
House officials in the week following Mr. Foster's death. The
committee's investigation revealed, among other things, the following
facts.
Fact: Foster's office was never sealed the night of his death despite
four separate official requests.
Fact: High-ranking White House officials searched it without
supervision.
Fact: Maggie Williams was seen by an unbiased witness carrying a
stack of documents out of Foster's office.
Fact: Nussbaum made an agreement for Justice Department officials to
conduct a search of Foster's office.
Fact: Nussbaum told Stephen Neuwirth that the First Lady and Susan
Thomases was concerned with the Justice officials having unfettered
access to Foster's office.
Fact: A flurry of phone calls occurred at critical times--17 separate
contacts in a 48-hour period among Hillary Clinton, Maggie Williams,
Susan Thomases, and Nussbaum.
Fact: After those calls, Nussbaum reneged on the deal with the
Department of Justice investigators. He insisted on searching the
office himself.
Fact: Once the investigators left the scene, a real search occurred
with Maggie Williams' help, and afterwards she took documents to the
residence.
Mr. President, I am going to go back through those various facts that
I have raised, and again I am focusing on a very, very small portion
and limited area of this whole debate. The area that I will be focusing
on again is the night of Foster's death and the few days following that
death.
Seven different persons recalled four separate requests to White
House officials to seal Vincent Foster's office on the evening of his
death. This was not done until the next morning. Hillary Rodham Clinton
called Maggie Williams, her chief of staff, at 10:13 p.m. immediately
upon hearing of Mr. Foster's death on July 20, 1993. Right after
talking with Mrs. Clinton, Ms. Williams proceeded to the White House to
Mr. Foster's office. White House Counsel Bernie Nussbaum and Deputy
Director of the White House Office of Administration, Patsy Thomasson,
met her there and conducted a late-night search of Mr. Foster's office
without law enforcement supervision.
Mrs. Clinton then called Susan Thomases, a close personal friend, in
New York at 11:19 p.m. Secret Service officer Henry O'Neill testified
that on the night of Mr. Foster's death, he saw Ms. Williams remove
file folders 3 to 5 inches thick from the White House counsel's suite
and place them in her office.
Now, why would this Secret Service individual lie about that? This
could constitute obstruction of justice, particularly if the billing
records were in those files. If this is true, there could be two
possible separate counts, the first against Maggie Williams for
knowingly taking relevant documents out of Foster's office with the
intent to hide them from investigators, and the second for turning them
over to someone else, possibly the Clintons, who then intentionally
withheld them from us in violation of numerous document requests and
subpoenas.
This is one of the central questions which the committee must
resolve.
After searching Mr. Foster's office on the night of his death, Ms.
Williams called Mrs. Clinton in Little Rock at 12:56 a.m. on July 21,
1993, and talked with her for 11 minutes. Again, this is 12:56 a.m.,
middle of the night. Once that call was concluded, only 3 minutes
later, at 1:10 a.m., after her conversation with Mrs. Clinton, Ms.
Williams called Ms. Thomases in New York and they talked for 20
minutes.
I wish to note here that when we first spoke to Ms. Williams, she
categorically denied talking to Ms. Thomases that night. Imagine, that
was a 20-minute conversation that took place at 1:10 in the morning and
Ms. Williams categorically denied talking to Ms. Thomases. When the
committee asked her for her phone records to prove her claim, she and
her lawyer stated they were not available from the phone company. We
asked the phone company for the records and, voila, 1 week later, we
had them.
Susan Thomases, a New York lawyer, is a close personal friend of
President and Mrs. Clinton. She has known the President for 25 years
and Mrs. Clinton for almost 20 years. She was an adviser to the Clinton
1992 Presidential campaign and remained in the close circle of
confidants to the Clintons after the election. One article referred to
Ms. Thomases as the ``blunt force instrument'' of enforcement for the
First Lady. She was the one who got things done in a crunch. As my
colleague, Senator Bennett, described her during the hearings, she was
the ``go-to'' guy on the Clinton team. If the First Lady wanted to make
sure that her people got to Foster's files before outside law
enforcement, Susan Thomases was just the person to get the job done.
Department of Justice officials testified that they agreed with Mr.
Nussbaum on July 21, 1993, that they would jointly review documents in
Mr. Foster's office. Let me just say that again. There was an agreement
between the Justice Department and Bernie Nussbaum as to how the
documents in Mr. Foster's office would be reviewed.
Then there is a flurry of phone calls that occurs at what I would
call critical times. We then begin a period of time in which a
multitude of calls took place involving Thomases, Williams, and the
First Lady. I believe the purpose of these calls might have been to
make sure that the agreement Bernie Nussbaum had made with the Justice
Department concerning the search of Foster's office was not kept.
Call No. 1. At 6:44 a.m.--fairly early in the morning. I am trying to
think about how many phone calls I have actually placed at 6:44 a.m.
Anyway, 6:44 a.m. Arkansas time on July 22, Maggie Williams called Mrs.
Clinton--this is the day following--called Mrs. Clinton at her mother's
house in Little Rock, and they talked for 7 minutes. Ms. Williams
initially did not tell the special committee about her early-morning
phone call to the Rodham residence.
After obtaining her residential telephone records documenting the
call, the special committee voted unanimously to call Ms. Williams back
for further testimony. When presented with these records, Ms. Williams
testified, ``If I was calling the residence, it is likely that I was
trying to reach Mrs. Clinton. If it was 6:44 in Arkansas, there's a
possibility that she was not up. I don't remember who I talked to, but
I don't find it unusual that the chief of staff to the First Lady might
want to call her early in the morning for a number of reasons.''
Maggie Williams said, ``I don't recall'' or ``I don't remember'' so
many
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times I lost count. According to one New York paper, as of last month,
all of the Whitewater witnesses combined said this a total of 797 times
during the hearings alone.
Call No. 2. This is a call that takes place now 6 minutes after the
call that Maggie Williams forgot or just did not mention to the
committee until we had records of the call. But 6 minutes after she
apparently was willing to wake up the First Lady 6:44 Arkansas time, 6
minutes later Mrs. Clinton called the Mansion on O Street, a small
hotel where Susan Thomases stayed in Washington, DC. The call lasted 3
minutes. Oddly enough, Ms. Thomases did not remember this call again
until after the committee was provided with her phone records.
Call No. 3. Upon ending her conversation with Mrs. Clinton, Susan
Thomases immediately paged Bernie Nussbaum at the White House, leaving
her number at the Mansion on O Street. When Mr. Nussbaum answered the
page, they talked about the upcoming review of documents in Mr.
Foster's office. Ms. Thomases actually told the committee that these
two phone calls had nothing to do with one another. After obtaining
records documenting that she talked with Mrs. Clinton for 3 minutes
immediately prior to paging Mr. Nussbaum, the special committee voted
unanimously to call Ms. Thomases back for further testimony.
She maintained, however, that she called Nussbaum, because again, ``I
was worried about my friend Bernie, and I was just about to go into a
very, very busy day in my work, and I wanted to make sure that I got to
talk to Bernie that day since I had not been lucky enough to speak with
him the day before.''
I will come back to the busy day she was having later. At this point
I will say that she was busy all right, but not with her private law
practice.
Mr. Nussbaum has a different recollection of his conversations with
Ms. Thomases. On July 22 he testified that Ms. Thomases initiated the
discussion about the procedures that he intended to employ in reviewing
documents in Mr. Foster's office.
``The conversation on the 22d''--this is a quote now-- ``The
conversation on the 22d was that she asked me what was going on with
respect to the examination of Mr. Foster's office.'' ``She said * * *
people were concerned or disagreeing * * * whether a correct procedure
was being followed, * * * whether it was proper to give people access
to the office at all.''
According to Mr. Nussbaum, Ms. Thomases did not specify who these
``people'' were to whom she was referring, nor did Mr. Nussbaum
understand who they were. Mr. Nussbaum testified he resisted Ms.
Thomases' overture, but he said, ``Susan * * * I'm having discussions
with various people,'' which, by the way, we determined those various
people were Hillary Clinton, Bill Clinton and Maggie Williams. Again
quoting--``Susan * * * I'm having discussions with various people. As
far as the White House is concerned, I will make a decision as to how
this is going to be conducted.''
He did decide to renege on his deal with the Department of Justice,
but only after more phone calls from Maggie Williams and Susan
Thomases. We have independent corroboration from Steve Neuwirth. Steve
Neuwirth, a member of the White House counsel staff, testified under
oath that Bernie Nussbaum told him Susan Thomases and the First Lady
were concerned about giving the officials from Justice ``unfettered
access'' to Foster's office.
While the Justice Department officials were kept waiting outside,
Nussbaum continued his discussions, as more phone calls ensued,
presumably about how to search the office.
Call No. 4. We are back again to this series of phone calls I was
describing a little earlier. This is the fourth phone call. This is
8:25 in the morning of July 22. Thomases called the Rodham residence
and spoke for 4 minutes.
Call No. 5. At 9 a.m., Thomases called Maggie Williams and left the
message ``call when you get in the office.''
Call No. 6. 10:48 a.m., Thomases calls Chief of Staff McLarty's
offices, spoke with someone for 3 minutes.
A meeting involving numerous members of the White House staff was
going on in McLarty's office at this time to decide how to handle the
search of Foster's office. In the meantime, the officials from the
Justice Department, Park Police, and other agencies were waiting around
for the search to begin.
Call No. 7. 11:04 a.m., Thomases called Maggie Williams, spoke for 6
minutes.
Call No. 8. This is occurring 1 minute after the conclusion of the
previous call--Thomases calls Chief of Staff McLarty's office, spoke
with someone for 3 minutes.
Call No. 9, just a couple minutes later, Thomases calls Chief of
Staff McLarty's office again; spoke with someone for 1 minute.
Call No. 10. 11:37 a.m., Thomases called Maggie Williams, spoke for
11 minutes. Three minutes after that call was completed, Thomases
called Maggie Williams and spoke for 4 minutes. Do not forget, this is
all taking place during the time that Ms. Thomases said she was going
to be very, very busy on conference calls related to her private legal
practice.
When we asked Ms. Williams about all these calls to her office from
Susan Thomases, she denied talking to her, and told us it could have
been anybody else in her office, could have been an intern, a
volunteer, or another staffer. Her refusal to take responsibility for
the calls resulted in 32 different staffers having to be interviewed
about who might have spoken to Susan Thomases that day, and all said
they do not remember talking to her.
By doing this, Maggie Williams asked the committee to believe that
Susan Thomases regularly calls unpaid interns at the White House just
to chat. Her testimony to the committee was frankly typical of her
whole approach to the process. In my opinion, both Maggie Williams and
Susan Thomases are openly contemptuous of the committee's work. Their
attitude toward this inquiry has never been one of cooperation, but
rather blatant hostility.
Their behavior, coupled with the documentary evidence we have
acquired, lead me to no other reasonable conclusion than that Maggie
Williams and Susan Thomases were involved or influenced the decision to
breach the agreement with the Department of Justice. Their behavior,
and what I believe to be the reasons behind it, are frankly an insult,
not just to us, but to the credibility and integrity of the Presidency.
Call No. 12. At 12:47 p.m., Capricia, an individual who is Hillary
Clinton's personal assistant, paged Maggie Williams from the Rodham
residence.
Call No. 13. 12:55 p.m., Maggie Williams called the Rodham residence
and spoke for 1 minute. The pressure on Nussbaum must have been too
great. He broke his agreement with the Justice Department and conducted
the search essentially unsupervised. After learning of Nussbaum's
reversal, David Margolis, one of the seasoned DOJ officials sent over
for the search, told Nussbaum, that he was making a big mistake.
Once he heard this news, Philip Heymann, the Deputy Attorney General,
later asked, ``Bernie, are you hiding something?"
Call No. 14. At 1:25 p.m., the White House phone call to Rodham
residence. Conversation for 6 minutes. Was this to tell Mrs. Clinton
the deal with the Justice Department had been reneged upon?
Then we move to the search which takes place in Foster's office from
approximately 1 p.m. to 3 p.m. The Department of Justice officials
again are kept at bay.
Call No. 15. 3:05 p.m., Bill Burton, McLarty's deputy, called Maggie
Williams and left a message. He had been asked by Nussbaum, after the
review of Foster's office, to locate Maggie Williams. This signals the
attempt by Nussbaum, through his deputy, to get the real search of the
office underway, but only with Ms. Williams' help.
Call No. 16. 3:08 p.m., Thomases called Maggie Williams. Spoke for 10
minutes.
Call No. 17. 3:25 p.m., Steve Neuwirth called Ms. Williams and left a
message. They are still trying to find Ms. Williams.
Call No. 18. It occurred somewhere between 4 and 4:30 p.m. Bernie
Nussbaum personally called Maggie Williams to summon her to Foster's
office. They searched the office for about half an hour.
Call No. 19. Somewhere between 4:30 and 5 p.m. Maggie Williams phoned
Hillary Clinton.
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Call No. 20. 5:13 p.m., Thomases called Maggie Williams. Spoke for 9
minutes, 30 seconds.
Then Maggie Williams takes the documents to the residence. Although
the public was initially told by the White House spokesperson that all
the Clintons personal documents were immediately turned over to their
lawyers after Foster's death, once again, we later learned this was
simply untrue.
Tom Castleton, a White House employee, spoke against his own interest
and told us Maggie Williams asked him to take boxes of documents from
Foster's office to the residence on July 22, 1993, so the First Lady
and the President could review them.
I want to go back to this point again. This is Maggie Williams who
again says that this did not occur. We have got testimony under oath
from Tom Castleton that when he and Maggie Williams were taking these
documents to the third floor of the White House, that Maggie Williams
told Tom Castleton that the reason they were doing this is so that the
First Lady and the President could review them.
What I see is a day that begins and ends with Maggie Williams, Susan
Thomases and Hillary Clinton conversing. I think Maggie Williams
started the day at 6:44 talking with the First Lady about the need to
keep law enforcement out of Foster's office and to get certain
documents into a safe place.
She ended the day with a conversation with Thomases and a
conversation with Hillary Clinton to let them know--mission
accomplished. Bernie Nussbaum was able to control the document review.
Nothing was divulged to the Department of Justice investigators. The
sensitive documents of the First Lady were whisked away to the private
quarters where months later Carolyn Huber discovered critical billing
records which had Foster's handwriting all over them.
Hubbell even told us he had last seen them in Foster's possession. I
believe those records may have been among the files Maggie Williams
took out of Foster's office.
The first time we talked to Ms. Williams and Ms. Thomases, we only
had a record of 12 of these phone calls. They denied talking to each
other, except maybe once or twice, during this period. We received the
phone records in three separate installments and, in the end, we see
their testimony was nothing but deception.
There were 17 separate contacts in a 48-hour period among Hillary
Clinton, Maggie Williams, Susan Thomases and Bernie Nussbaum, which I
believe were related to how to handle the documents in Foster's office.
Thomases was on the phone to the White House for 28 out of 58 minutes
when Nussbaum was trying to decide how to handle the search of Foster's
office.
Again, this was on the day that, in her own words, again I quote, ``I
was just about to go into a very, very busy day in my own work.'' It
now appears that her work was, in fact, the First Lady's work.
But that is not all. There is more deception about the suicide note
and the documents removed from Foster's office. I want to reiterate, I
have picked out one small segment of the investigation of the testimony
that we reviewed, and it certainly ought to become obvious to people,
as they listen to this, the lack of cooperation that we received from
the witnesses, the lack of cooperation that we received from the White
House. As I said earlier, I believe that the White House was actively
involved in trying to cover up.
I am moving now to July 27, 1993. It is an important day. This is the
day that the suicide note was turned over. Vince Foster's suicide note
had been found the previous day. It was only turned over to the Park
Police after a meeting with Janet Reno where she instructed the White
House to do so. Attorney General Reno was very strong and decisive in
her direction to the White House. I am paraphrasing, but basically the
impression she left was, ``Why did you waste my time? Why did I have to
come to the White House to tell you to turn these documents over?"
I raise the question, Why were the documents not turned over the same
day they were found? If you think about it for a moment, what possible
reason could the White House have for keeping that note overnight, 30
hours? Why?
In retrospect, it is stunning that the White House did not turn it
over to the Park Police right away. Obviously, as we can see by their
handling of the note, they had no real intention of cooperating. Prior
to the note being turned over to the Justice Department or Park Police,
Hillary Clinton and a horde of other White House officials saw it. From
what it sounded like, there were a large number of people--again, what
I am referring to is from the testimony. The note was found, taken to
Nussbaum's office, and people were coming in and reviewing this note.
The people who, in fact, had seen the note were asked to testify about
that note and who else was in the room, who else saw the note.
Oddly enough, everyone who was later interviewed by the FBI about the
circumstances of finding the note forgot about the First Lady having
seen it. Only during our second round of hearings did we learn about
this important fact.
As for the documents that Tom Castleton and Maggie Williams took up
to the residence on the 22d, they were turned over to Bob Barnett, the
Clinton's personal attorney, on this day, on the 27th. Susan Thomases
has testified she did not recall seeing Mrs. Clinton on July 27 and
that she was not involved in Ms. Williams' transfer of Whitewater files
from the White House residence to Clinton's personal lawyer, Mr. Bob
Barnett, this despite records showing that Susan Thomases entered the
residence at the same time as Mr. Barnett.
Thomases spent 6 hours there, yet she does not remember anything
about being in the White House that day. I mean, they are really asking
us to stretch our willingness to understand how this could happen.
I want to go over that point again because I find this really--6
hours she was in the White House. It would be one thing if somehow or
another she just happened to either bump into Maggie Williams or bump
into Bob Barnett and forgot it, but to, in essence, have forgotten
anything about the 6 hours at the White House, I just find that very,
very, very hard to believe.
As recently as January 9, 1996, we received another phone record of a
message from Mrs. Clinton to Susan Thomases from July 27, 1993 at 1:30
p.m., asking Thomases to please call Hillary. Ms. Thomases was in
Washington, DC on that day when she would not normally have been in
town, and she had received a message from Mrs. Clinton's scheduler the
day before. This is also the first time Ms. Thomases saw the First Lady
after Vince Foster committed suicide.
So that is two personal requests by the First Lady to speak to her,
but Thomases has no memory of the occasion. Ironically enough, she was
able to tell the committee in some detail the specific reasons why she
happened to be in Washington on Tuesday instead of on Wednesday but has
absolutely no memory of a White House visit when there. This type of
memory loss is, first, unbelievable and, second, I believe a purposeful
attempt to avoid giving the committee information that it is entitled
to.
What I have gone over is just, again, one small portion of the body
of evidence this committee has uncovered.
Here are some other items which form my view of the situation and
explain why I have arrived at the conclusion that this White House has
engaged in an attempt to completely stonewall the committee and the
American public.
Unethical Treasury/White House contacts led to the resignation of
Altman and Hanson and Steiner, saying he lied to his diary. You may
recall that from earlier hearings we had. These contacts were a
systematic effort to gain confidential information from Government
sources and ultimately influence the criminal and civil investigations
of Madison.
The President's refusal to turn over vital notes under the guise of
attorney-client privilege--this kind of coordination among White House
staff and personal lawyers resulted in a multimember Clinton defense
team at taxpayers' expense.
Now we understand why they did not want to turn over those notes,
because they contain phrases such as ``vacuum Rose law files.''
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The coverup has now reached the third floor of the White House
residence. It is difficult to construct a scenario where whoever left
billing records on that table is not guilty of a felony. It is the most
secure room in the world. Are we supposed to believe, as my colleague
from North Carolina indicated during the hearing, that the butler did
it?
Hillary Clinton has publicly floated the possibility that
construction workers may have placed those billing records in the book
room. After committee investigation, we now know that workers are under
constant Secret Service supervision and they would be fired if they
moved anything around.
The White House has seriously delayed document production from key
White House players in the Whitewater legal defense team: Gearan, Ickes
and Waldman--and, as I said earlier, just last week, Lindsey.
Even when documents were turned over, there were redactions which
were just plain wrong. The notes Mr. Gearan produced to us of a series
of meetings of the Whitewater legal defense team were so heavily
redacted that the committee insisted on a review of the complete notes.
As it turns out, the White House chose to redact highly relevant
statements.
For example, one redacted portion--and I guess maybe I ought to stop
for a minute, because some people may not understand what ``redaction''
means. It would be, for example, if I were to take this page and make
the determination that there were some things on here that were not
relevant; I would just white them out and white out everything on the
page I thought was irrelevant, leaving only, let us say, a note on here
that says, ``Quality, not quantity of evidence'' that is important.
So, for example, one of the redactions said that ``the First Lady was
adamantly opposed to the appointment of a special counsel.'' What I am
saying to you is, when we first got the document, a lot of information
that we believed was relevant was whited out, redacted. We could not
see it. It was only after we demanded to see it, after they said to us,
``Do not worry, there is nothing else of any relevance on this document
to what you are investigating.'' This one redacted portion said, ``The
First Lady was adamantly opposed to the appointment of a special
counsel.''
I think that is relevant and it is another example of the White
House's efforts to keep us from moving forward. I know that the White
House, as well as Members on the other side of the aisle, keep
hammering on the fact that over 40,000 pages of documents have been
produced. But it is not the quantity of documents that matter. They
could produce a million pages but deliberately withhold one key page.
By telling us to be satisfied with what they have already given us, it
is like telling us we can have everything but the 18-minute gap in the
4,000 plus hours of Watergate tapes. Plain and simple, in my opinion,
this amounts to contempt of the Senate and obstruction of justice.
We in the Senate have a serious responsibility to investigate abuses
of power in the executive branch. It is one of our constitutional
obligations and is a responsibility which the people of Florida expect
me to carry out.
The obligation of the legislative branch to hold the executive branch
accountable goes back to the beginning of our American heritage. The
Founding Fathers had this very role in mind when they debated
ratification of the Constitution. In Federalist Paper No. 51, James
Madison explained the need for checks and balances among the branches
of Government.
If angels were to govern men, neither external nor internal
controls on government would be necessary. In framing a
government which is to be administered by men over men, the
great difficulty lies in this: You must first enable the
government to control the governed; and in the next place
oblige it to control itself.
The special committee's work is an attempt to ensure that we are
controlling government in the way our Founding Fathers envisioned. We
owe it to the American people. This is their Government, and we are
accountable to them.
Now, the failure of Madison Guaranty cost the taxpayers $60 million.
I have attended hearings day after day and heard some amazing
incidences of wrongdoing, only to turn around and hear administration
apologists proclaim, ``So what.'' This is my reaction to the ``so
what'' response. In other words, what they are saying is, ``You have
not proved anybody guilty of anything. There is no smoking gun. So
what.'' It is like saying that if somebody takes a gun and shoots at
somebody and misses, no harm was done. I think, in fact, there is harm
that has been done; and it has, in fact, been uncovered.
To those who insist that nothing wrong was done, I suggest you look
to the results obtained so far from the independent counsel's work:
Nine guilty pleas and indictments against seven others. That tells me
that the issues we are pursuing are important.
In fact, in the most recent round of indictments, the President's
1990 gubernatorial campaign is specifically mentioned as the direct
beneficiary of criminal behavior.
It is also interesting to note that the work of this committee has
helped, not hindered or duplicated, the work of the independent
counsel. The Albany Times Union observed that without the public demand
in our hearings for the First Lady's billing records, the special
prosecutor might still be waiting for them.
The public has a right to know the truth about this administration.
On February 25, the Washington Post ran an editorial favoring an
extension of the special committee. The main reason stated for needing
additional time was the failure of the White House to cooperate. This
is what the Washington Post said: ``Clinton officials have done their
share to extend the committee's life.''
A January 25 editorial in the New York Times said, ``Given the White
House's failure to address many unanswered questions, there is . . . a
strong public interest in keeping the committee alive.''
One Florida newspaper, the St. Petersburg Times said, ``Forget
election year politics. The American people deserve to know whether the
Clinton administration is guilty of misusing its power and
orchestrating a coverup. For that reason--and that reason alone--the
Senate Whitewater hearings should go on.''
Further, they cited the most important and most democratic reason to
continue these hearings was, ``Ordinary citizens need to learn what all
this Whitewater talk is about. Americans deserve a President they can
trust, someone who embraces questions about integrity instead of
running from them. If the answers make Clinton's campaigning more
difficult, so be it.''
Wrongdoing should not go unpunished just because it was discovered
during an election year. ``The search for answers cannot stop now.''
I agree wholeheartedly with the St. Petersburg Times. This
committee's work must continue in order to preserve the future
integrity of the office of the President. The Presidency of the United
States is an office which should be looked to as a beacon of trust. Our
President should be honest and forthright, and so should his staff. Our
duty is to ensure that the President upholds this basic standard,
abides by the laws of the land, and avoids any abuse of his sacred
office.
Apologists for the administration's behavior have complained this
investigation is costing taxpayers too much money. I agree with my
colleague, again, from North Carolina, who said, ``You cannot put a
price tag on the integrity of the Presidency.''
For those of my colleagues who may still be deciding how to vote on
this matter, I suggest they ask themselves a few basic questions. Have
all the White House staffers been forthcoming, candid, helpful, and
informative in their testimony and conduct? Did the career employees of
key agencies who contradicted White House staff lie when they told us
of White House interference? Has the President fulfilled his pledge to
cooperate fully with the committee? If you answer one or more of these
questions with a no, do as I will, and support the resolution so that
we might finally learn the truth.
Thank you, Mr. President. I yield the floor.
Mr. SARBANES addressed the Chair.
The PRESIDING OFFICER (Mr. Ashcroft). The Senator from Maryland is
recognized.
Mr. SARBANES. Mr. President, the issue before us is a resolution that
has
[[Page S1557]]
been reported from the Rules Committee, introduced by Senator D'Amato,
the chairman of the Special Whitewater Committee, which would
indefinitely extend the special committee and provide another $600,000
over and above the almost million dollars that was provided last year
for it to continue its work.
The distinguished minority leader, Senator Daschle, has proposed that
the committee's work continue until the 3rd of April with an additional
$185,000. The question is really whether the life of this committee
ought to be given an indefinite extension throughout the 1996
Presidential election year.
I am going to retrace the history of our inquiry with respect to this
particular issue, because I am very frank to say that I think the
indefinite extension of the work of this committee will only result in
politicizing the committee. It will be increasingly perceived by the
public as an investigation being conducted for political purposes.
Now, that was recognized last year when the resolution establishing
the committee was first passed. Last May--on May 17--the Senate adopted
Senate Resolution 120, which provided for the establishment of the
Special Committee To Investigate the Whitewater Development Corporation
and Related Matters. That resolution, which provided $950,000--almost
$1 million to carry out that investigation--provided that the funding
would expire on February 29, 1996.
The reason it provided that was that from the beginning the intent
was to carry out this inquiry in a fair, thorough, and impartial
manner, and complete it before the country enters into the Presidential
campaign. Therefore, Resolution 120, by authorizing funding only
through February 29, accomplished this objective. In fact, the
resolution states that the purposes of the committee are ``to expedite
the thorough conduct of this investigation, study and hearings'' and
``to engender a high degree of confidence on the part of the public
regarding the conduct of such investigation, study and hearings.''
In fact, Chairman D'Amato, before the Rules Committee, stated when
funding for the inquiry was being sought, ``We wanted to keep it out of
that political arena, and that is why we decided to come forward with
the one-year request.''
So it is very important to understand that at the time the resolution
was adopted there was a concern about this inquiry becoming a partisan
political endeavor. It was very clear that to avoid that it was decided
not to extend the inquiry well into the Presidential election year. In
fact, the resolution provided that the committee should report to the
Senate in mid-January, evaluating its progress and the status of the
investigation. When that report was made, regrettably the majority took
the position they needed an unlimited extension of the inquiry--
unlimited. In other words, it could go throughout 1996.
The minority took the position--and this was back in mid-January--
that the committee should complete its investigation by the date
contained in the resolution; namely, the 29th of February. We argued in
that report, ``It is well within the ability of the committee to
complete its investigation by the February 29th date provided for in
the resolution. The committee should undertake a schedule for the next
6 weeks that will enable it to meet that objective.''
In fact, the Senate leadership had announced that the Senate would
not be in regular voting sessions from the period of mid-January until
near the end of February, and without any competing legislative
business, it was our view that the committee could devote full
attention of this investigation, hold an intense series of hearings and
complete its inquiry on schedule--on schedule--and within budget as
provided for in Senate Resolution 120 which this body adopted last May
on a vote of 96-3.
It was possible for the committee to have met 4 or 5 days a week, a
pace the committee has on previous instances followed. This very same
committee has followed that pace on other occasions. That would have
given the committee the opportunity to do the Arkansas phase of the
inquiry, part of which remained to be completed, the committee having
largely completed the work on the Foster papers phase and the
Washington phase.
Now, between July and August of last year, between July 18 and August
10, at a time when the Senate was in session and Members were handling
extensive legislative business, this special committee held 13 days of
public hearings and examined 34 witnesses. That is a period of 3 weeks
last summer, this committee, working hard, held 13 days of public
hearings and examined 34 witnesses. The Iran-Contra committee, which I
will turn to in a bit to make some other contrasts, held 21 days of
hearings back in 1987 between July 7 and August 6 in order to complete
its work.
Now, there is an important reason not to carry this matter well into
a Presidential election year. By authorizing the funding only through
February 29, Senate Resolution 120 stated that the purpose was to
engender a high degree of confidence on the part of the public
regarding the conduct of such investigation, study and hearings.
Extending the life of the committee beyond that date, and in particular
extending it for an indefinite period of time would undermine this
objective. Inevitably, in my judgment, it would diminish public
confidence in the impartiality of this inquiry.
Now, regrettably, an intensification of the hearing schedule was not
pursued through January and February. So we came to the end of February
and the majority, now led by Chairman D'Amato, has proposed an
unlimited extension of time to continue the Senate investigation. That
proposal was reported out of both the Banking Committee and the Rules
Committee on a straight partisan vote, in contrast to the vote on
Senate Resolution 120 last May.
The minority proposed an alternative. We took the position in mid-
January that this inquiry could be finished by the end of February,
pursuant to Senate Resolution 120, but the kind of hearing schedule
that would have been necessary to accomplish that was regrettably never
adopted. In fact, we have a situation in which in the 2-month period,
we saw opportunities to conduct hearings simply pass by. In January, we
held one hearing this week, two hearings this week, two this week, two
that week. So we held seven hearings in the entire month of January.
January--seven hearings.
I remind Senators that last summer this very same committee in the
period between July 18 and August 10, a period of 3 weeks, held 13 days
of public hearings, 13 days of public hearings. The Iran-Contra
committee, in a month, held 21 days of public hearings. Mr. President,
seven hearings in the month of January; the pace in February was the
same. The month of February we held eight hearings. All of these
opportunities to hold hearings on all these other days did not take
place, and in the last 2 weeks we held 1 day of hearings out of nine
possibilities. So we came to the end of February not having intensified
the hearing schedule, and Chairman D'Amato and the majority now propose
an indefinite extension of the hearing schedule.
Additional funding, $600,000, which, of course, would bring Senate
expenditures on the investigation of Whitewater matters to $2 million--
$400,000 in the previous Congress, $950,000 thus far by this committee,
and an additional $600,000. Now, of course, that does not take into
account the money spent by the independent counsel, which is now
understood to be above $25 million, and increasing at about the rate of
$1 million a month; or the money spent by the RTC on a civil
investigation carried out by the Pillsbury Madison firm, which comes in
at just under $4 million. We have no firm figure on the amount spent by
House committees looking into the Whitewater matter, nor a figure for
the money spent by Federal agencies assisting with or responding to
these investigations. In any event, it is very clear that the amount
spent in total, including all of these various sources, is over $30
million.
Senator Daschle wrote to Senator Dole on the 23d of January, at the
time the report was filed, in which the minority argued very strongly
that the committee should undertake an intensified hearing schedule in
the final 6 weeks, to complete its investigation by the February 29
date, and said in his letter, and I am quoting Senator Daschle now:
[[Page S1558]]
It is well within the special committee's ability to
complete its inquiry by February 29. The committee can and
should adopt a hearing schedule over the next 6 weeks that
will enable it to meet the Senate's designated timetable.
As I indicated, no serious effort to intensify the hearing schedule
in order to meet the February 29th deadline occurred. In fact, in the
last week no hearing whatever was held. In the week before, only one
hearing was held. In other weeks, more hearings were held, two
hearings, maybe three hearings, but often with witnesses who had little
new to contribute to the investigation.
Senator Daschle has put forth an alternative proposal in an effort,
really, to demonstrate reasonableness, with respect to the work of the
committee, and that is to provide an additional 5 weeks, until April 3,
for the special committee to complete its hearing schedule, and until
May 10 for the committee to complete its final report and to pay for
this extra time by additional funding of $185,000.
In my view, 5 weeks of additional hearings should be more than
adequate to complete the so-called Arkansas phase of this
investigation, a phase which concerns events that occurred in Arkansas
some 10 years ago, events which have been widely reported on since the
1992 Presidential campaign, about which much is already known.
So, in an effort to reach an understanding, Senator Daschle said we
felt that you could have completed your work by the deadline, by
February 29, as was enacted by the Senate last May when they passed the
resolution establishing the committee. That represented the judgment
and the consensus of this body in passing that resolution 96 to 3. And
when we reached the mid-January point, it was clearly stressed that an
intensified schedule would enable the committee to complete its work on
time and within budget. That did not happen. We did not get that
intensification of schedule. Now we come, having passed the 29th of
February, with Chairman D'Amato and the majority arguing that they now
want an indefinite extension of this inquiry.
I think the proposal put forth by the minority leader, Senator
Daschle, is an eminently reasonable one. Regrettably, it was rejected
in the Banking Committee on a straight party-line vote and rejected
again in the Rules Committee by a straight party-line vote. In other
words, the Democratic position was, we are willing to provide a limited
extension in order to finish up the things that you assert are not yet
done and will provide a limited amount of time. We do not want to, in
effect, commit $600,000, but we will commit $185,000.
Let me compare and contrast the procedure that has been followed with
respect to this resolution and the question of its extension with what
occurred on the Iran-Contra hearings which took place in 1987, namely
the year preceding a Presidential election year, just as 1995 precedes
a Presidential election year. In considering a resolution with respect
to Iran-Contra, Senator Dole took the very strong position that the
inquiry ought not to extend into the Presidential election year.
In fact, in early 1987, when Congress was considering establishing a
special committee on Iran-Contra, some advocated that it have a long
timeframe, extending into 1988, in order to complete its work. There
was a conflict between some Democrats in the House and Senate who
wanted no time limitations placed on the committee, and Republican
Members, led by Senator Dole, who wanted the hearings completed within
2 or 3 months. And, of course, it was pointed out at the time, and
escaped no one's attention, that an investigation that spilled into
1988 would only place the Republicans in a defensive posture during the
Presidential election year.
Senator Inouye, who was selected to chair the special committee, and
Congressman Hamilton, who was selected as its vice chairman,
recommended at the time rejecting the opportunity to prolong, and
thereby exploit for political purposes, President Reagan's
difficulties. They determined, in fact, that 10 months would provide
enough time to carry out the inquiry, and that was the requirement
under which the Iran-Contra Committee moved forward. In fact, during
the Senate debate on the resolution to establish a select committee on
Iran-Contra, Senator Dole noted the good-faith effort of these two
congressional leaders to have the committee complete its work in a
timely manner.
He stated:
I am heartened by what I understand to be the strong
commitment of both the chairman and vice chairman to avoid
fishing expeditions and to keep the committee focused on the
real issues here.
And the time period then was shortened from what many had been
proposing in order to expedite and complete work on the matter and not
carry it into the 1988 election year. Senator Dole argued during floor
debate that the country had many other matters to deal with, and
stated:
With all these policy decisions facing us, the Senate--and
the country, for that matter--cannot afford to be consumed by
the Iranian arms sales affair.
So the Senate, when it passed the resolution, established a
termination date well before the end of 1987. The termination date in
our resolution was in February 1996. But it was recognized that that
was to avoid going further into a Presidential election year. In doing
that, Senator Dole said:
There is still a national agenda that needs to be pursued.
There are a number of issues that must be addressed, and the
American people are concerned about the Iran-Contra matter.
But they are also concerned about the budget, about the trade
bill, about health care, and a whole host of issues that we
will have to address in this Chamber.
He went on to say:
The problems of the past, as important as they are, are not
as important as the future. And, further, if we get bogged
down in finger pointing, in tearing down the President and
the administration, we are just not going to be up to the
challenges ahead, and all of us--all Americans--will be the
losers.
I want to compare these two ways of proceeding because it was debated
at the time of Iran-Contra, and recognized some push to extend it into
1988 and into the Presidential election year. That was very strongly
opposed by Senator Dole, and by his colleagues. In the end, Senator
Inouye and Representative Hamilton turned down the opportunity to
prolong the inquiry into the election year and extend it for political
purposes.
This Senate last May took, in effect, the same position by
establishing the February 29, 1996 date. We have now reached that date.
And we find the majority asking for an unlimited extension of this
inquiry after we have been through a period in which neither in January
nor in February did the committee embark upon an intense hearing
schedule in order to finish its work by the cutoff date.
As I have indicated, we had hearings only 8 days in the month of
February, a month when the Senate was not in session. And, therefore,
when it was possible to really devote all day every day to this issue,
there were no hearings in the last week in February--only one hearing
in the next to the last week. And in the month of January, once again,
many days without any hearings by the special committee, 7 days of
hearings out of the entire month, 8 days in February. That is a total
of 15 days over 2 months.
As I indicated earlier, this very committee last summer in the latter
part of July and the first part of August--over a 3-week period--held
13 days of hearings. But let us compare it with Iran-Contra because
that was a situation in which the Democrats controlled the Congress.
There was a Republican administration.
The question then was, what was fair in terms of carrying out this
inquiry, and how far should it extend into the Presidential election
year? And the Democrats took the position that they were not going to
extend it into the Presidential election year. They were going to try
to keep politics out of the inquiry. Obviously, the further it goes
into a Presidential election year, the more politics will come into the
inquiry. And there is just no doubt about that, and the more the
public's confidence in the impartiality of the inquiry will be eroded.
In 1987, in order to meet this schedule, the Iran-Contra committee
held 21 days of hearings between July 7 and August 6. It met literally
every Monday through Friday with three exceptions over a 5-week period.
So there was an intense set of hearings in order to carry through on
the undertaking that had been made to finish up its work in a timely
fashion and
[[Page S1559]]
avoid keeping the matter out of the 1988 Presidential election year--21
days of hearings with only three open days during that period so it
could complete its hearing work within the timeframe set forth in the
resolution which established it; 21 days of hearings.
Contrast that--the undertaking made by the Democratic Congress then
dealing with a Republican administration to honor the effort to keep it
out of the election year and out of the political context and not to
have it turn into a partisan endeavor. Contrast this hearing schedule--
21 days of hearings in a 1-month period--with a hearing schedule that
has been pursued by this committee over the last 2 months. There were
only 8 days of hearings in February, and only 7 days of hearings in
January for a total of 15; 15 days over 2 months when Iran-Contra had
21 days in a month and finished up its work to honor the undertaking
not to project it into a political year.
My own view is that the committee could and should have finished its
work by the 29th of February as it was charged to do by the resolution
that was adopted by this body last May. I think that was well within
the ability of the committee. It did not happen. We are now confronted
with a situation in which Chairman D'Amato and his colleagues seek an
unlimited extension of the work of the committee.
Senator Daschle indicated on the 23d of January that he thought the
committee could complete its work by February 29. Now he has prepared
and has offered an alternative in an effort to accommodate providing
some additional time and funding for the committee to carry on its
work.
In other words, we felt the committee should have finished by
February 29. They did not follow a schedule in order to do that. The
question is, what now? Senator Daschle, in an effort to accommodate,
proposed providing additional weeks of hearings, until April 3 to
complete a hearing schedule, until May 10 to complete a final report,
and funding to carry out this work of $185,000 as contrasted with the
$600,000 that Chairman D'Amato is seeking for an indefinite extension
of the work of the committee. In other words, an extension that can go
throughout 1996 and obviously right into the Presidential campaign--an
extension which, in my judgment, by prolonging the investigation well
into a Presidential election year, will contribute to a public
perception that the investigation is being conducted for political
purposes.
It needs to be understood, of course, that the independent counsel's
inquiry will continue. The independent counsel operates under, in
effect, his own statute. He has unlimited funding. So that inquiry will
go on as long as the independent counsel deems that it should go on.
Judge Walsh, as we know, went on many, many years with respect to Iran-
Contra and, in fact, continued his work after the hearings were
concluded.
These hearings have never been related to the work of the independent
counsel because the independent counsel is on a separate track. As we
saw in Iran-Contra, those hearings ended in the latter part of 1987,
but the independent counsel continued his work. Of course the work of
the current independent counsel, Kenneth Starr, will go forward. He was
given broad authority by a special panel of Federal judges to
investigate Whitewater. He has a staff that eclipses anything that is
available to any other inquiry that is now going on--we understand 30
attorneys and over 100 FBI and IRS agents; and the Independent Counsel
Reauthorization Act sets no cap on the cost of his investigation, which
has been over $25 million thus far.
So, in fact, many have raised the point: Let the independent counsel
do the inquiry, on the premise that that is a less political arena than
hearings conducted here in the Congress, particularly hearings that go
into the election year itself, so you have politicians looking at
politicians in a political year, and that is almost certain to
guarantee a political endeavor.
Now, in addition, it is important to realize that the RTC-
commissioned report, the comprehensive report by an independent law
firm, Pillsbury, Madison & Sutro, headed by a former Republican U.S.
attorney, Jay Stephens, that report has now been made public. It cost
almost $4 million. And the conclusion transmitted to the RTC was that
they found no basis on which the RTC should bring any actions, civil
actions, with respect to the various matters which they investigated.
That represents a very thorough and comprehensive review.
Let me turn for a moment to the argument about requiring an open-
ended extension in order to get more material. It is my understanding
that the White House has now provided all material requested with the
exception of those further requests made to it by the special committee
over the last 2 or 3 weeks.
A great to-do is made about material that has been provided 2 weeks
ago, a month ago, in early January. But the important thing to remember
is that that material was provided; so it was made available to the
committee. People raise a lot of commotion about the fact that Mr.
Gearan's notes were not provided earlier on. Well, they were provided.
He has an explanation as to why they were not provided earlier on. In
any event, the committee got them, reviewed them, and held a hearing
with Mr. Gearan, an all-day hearing, in which we went over those notes.
The same thing is true of the notes with respect to Mr. Ickes.
On March 6, today, Jane Sherburne, the special counsel to the
President, sent a letter to Chairman D'Amato and to me as the ranking
member in which she states the following, and I am quoting the letter:
Since the issuance of the Special Committee subpoena on
October 30, 1995, the White House has received some 30 new
requests from the Chairman. This letter summarizes the status
of our response to those requests.
We have provided responses to every request with the
exception of two new requests for e-mail made by the Chairman
in February after we reached what we had understood was the
Committee's finalized e-mail request memorialized in my
letter to the Committee on January 23, 1996. One of these
additional e-mail requests relates to the discovery of copies
of Rose Law Firm billing records which were provided to the
committee on January 5, 1996, 2 weeks before the Committee
staff finalized its e-mail request.
The other outstanding e-mail request relates to the period
January 3 through January 12, 1994. This request was first
made on February 16, 1996, but without the necessary detail
to conduct the retrieval process. The detail was later
provided by staff orally.
As you are aware, the Executive Office of the President
already has incurred over $138,000 in out-of-pocket costs for
the e-mail described in my January 23, 1996, letter. Although
we retrieved and reviewed 10 boxes of e-mails, this effort
produced nothing of use to the committee's inquiry.
Nonetheless, we are undertaking to respond to the new
requests and hope to provide you with the results shortly.
Those are additional requests that were made. The original e-mail
requests--well, the original request was so broad that no one really
reasonably could be expected to respond to it, and after extended
discussions, we were able to reach an agreement to focus those e-mail
requests and to narrow them down, and they now have all been provided.
In addition, the White House undertook to verify that all documents
provided to the counsel's office by White House staff beginning in
March 1994 had been reviewed and produced to the committee as
responsive. They also undertook to verify that all relevant White House
files of certain former White House officials that may contain
responsive material had been reviewed. So they undertook to go back and
scrub down the files as a consequence of a couple of these late-
arriving requests.
As a consequence of that work, some additional material--not much--
has been provided to the committee. Most of them are copies or
duplicates of matters that had previously been produced to the
committee.
But that material has also now been received by the committee. So the
committee now has all of this material in hand, which seems to me
argues very strongly for an approach as the one contained in that put
forth by the minority leader, by Senator Daschle, which would provide
the committee an extension of 5 weeks from the termination date in
order to complete its inquiry, some additional time in order to do its
report, and would really serve to keep this matter out of the election
year.
There has been no counterresponse to that proposal of the
distinguished minority leader, Senator Daschle. I mean, the original
proposition put forward by Chairman D'Amato was an indefinite extension
and $600,000. Senator
[[Page S1560]]
Daschle and his colleagues on this side of the aisle indicated that
that was unacceptable because it would really politicize this inquiry
even further in an election year and guarantee that it would turn into
a partisan political endeavor.
The Democrats did not seek to do that with Iran-Contra in 1987, and I
am frank to say I do not think the Republicans should seek to do that
with Whitewater in 1996.
The leader, faced with this proposal for an unlimited extension,
offered what I think was a very reasonable proposal. That is for an
extension until the 3d of April for hearings and until the 10th of May
for the report. That has not elicited any response from my colleagues
on the other side other than simply to press forward with their
original proposal, which was for an indefinite extension and an
additional $600,000.
As we have indicated, Mr. President, we do not think that is
necessary or required. We believe an indefinite proposal would make
this inquiry simply a partisan political endeavor. We note that while
the original resolution was passed by a very overwhelming bipartisan
vote of 96 to 3, the proposal for an unlimited extension is moving
along simply on the basis of a straight party vote.
We do not believe that is the way this matter should be handled. I
urge my colleagues on the other side to look again at the proposal put
forth by the minority leader, which I think represents a very
reasonable proposition.
I yield the floor.
Mr. BENNETT addressed the Chair.
The PRESIDING OFFICER. The Senator from Utah.
Mr. BENNETT. Mr. President, I have several observations and reactions
to the statement by the Senator from Maryland, who has done his usual
thorough job of examining a whole series of issues. But if I may, Mr.
President, without being disrespectful of my colleague, I would like to
say that those issues are not particularly significant or relevant to
what we are talking about here. I was not in the Senate when the Senate
discussed Iran-Contra or the October Surprise or Watergate or any of
the other hearings that he has discussed in such detail.
The issue before us is not whether or not those hearings were
conducted well or badly, whether they were conducted in a speedy and
expeditious manner or whether they were dragged out. The issue is
whether or not this committee deserves more time to do its work. For
that reason, I will not really debate with the Senator from Maryland
anything regarding Iran-Contra or October Surprise or any other such
issue.
The committee clearly needs more time to conclude its work. That is a
given. The proposal offered to the Senate by the distinguished
Democratic leader very specifically demonstrates a recognition of the
fact that the committee needs more time. So I do not think that
question is at issue.
The only question at issue before us is, how much time do we need? To
me, the answer to that is very simple--as much time as it takes to get
the facts. It is not that complicated. I know my colleague from Florida
spoke for 45 minutes, close to an hour. My colleague from Maryland has
spoken for the same period of time.
To me, the issue is very simple--how much time will it take to get
the facts? Not how much time has elapsed or how many witnesses we have
heard or how many documents have been furnished or how much time was
taken in another controversy that took place years ago. How much time
do we need to get the facts?
In an effort to try to come to that point, Mr. President, I turn to
the press. I will quote briefly from three editorials. They have been
quoted extensively before. They have been put in the Record. So I will
simply summarize some of them on the point that I have tried to make.
The Washington Post on the 25th of February, after examining many of
the outstanding issues says this in conclusion:
Who knows where this all will lead? The committee clearly
needs time to sift through these late-arriving papers as well
as interview witnesses now unavailable because they are key
figures in the Whitewater-related trials. So like it or not,
the Senate committee is unlikely to go off into the sunset at
month's end when its mandate expires. Clinton officials have
done their share to extend the committee's life.
That summarizes it for me, Mr. President. Why do we need more time?
Because Clinton officials have not been as forthcoming as they should
have been. The committee clearly needs time for two reasons. One, to
sift through these late-arriving papers. Why are they late arriving?
Again, ask President Clinton and his staff. The committee has been
asking for them for months. One, to sift through these late-arriving
papers, and, two, interview witnesses who are now unavailable because
they are key figures in the Whitewater-related trials. Very
straightforward. All right.
The New York Times, making comment in the aftermath of the Iowa and
New Hampshire primaries says:
The excitement of Iowa, New Hampshire has diverted
attention from the Senate Whitewater committee and its
investigation into the Rose Law Firm's migrating files.
I think that is an interesting phrase, the law firm's ``migrating
files.''
Naturally this pleases the White House--
Referring to the lack of focus on this--
Naturally this pleases the White House and its allies, who
hope to use the interregnum to let their `so what' arguments
take root. David Kendall, the Clinton's private attorney,
says the curious paper trail is just one of the meaningless
mysteries of Whitewater.
Then the Times says:
There are mysteries here, but they are not meaningless.
Then it goes on again through that which has been covered so many
times. I do not feel the necessity of covering it one more time. But
the Times concludes:
Perhaps the files will also show that there was no coverup
associated with moving and storing these files.
And this sentence--I love it, because it summarizes what we are
talking about.
Inanimate objects do not move themselves. It is pointless
to ask Senators and the independent prosecutors to fold their
inquiry on the basis of the facts that have emerged so far.
To do so would be a dereliction of their duties.
I love the way this is written. The ``migrating files,'' ``inanimate
objects do not move themselves.''
Another newspaper, USA Today, offered these comments in an editorial.
It leads off with this statement:
This week author Hillary Rodham Clinton was supposed to
inform the nation about the truths kids can tell us. Instead,
the nation is confronted with questions about whether the
First Lady is telling the whole truth about her role in two
scandals, Whitewater and Travelgate, and whether she and her
husband can stop acting like children when asked about it.
It then goes on to list a series of questions. Again, they have been
talked about at great length here on the floor. I see no point in
asking them again just for the sake of asking them.
But I like the conclusion, again, out of this editorial, after
renewing all of these questions. It says:
Mrs. Clinton and the President have raised these questions,
not Republicans.
I would like to repeat that for emphasis, Mr. President:
Mrs. Clinton and the President have raised these questions,
not Republicans. They've created the impression they may be
covering something up by being less than thorough in
responding to legitimate demands for information. This is not
the first time Mrs. Clinton has run into such a problem. She
never fully explained profits from the 1970's commodities
trades. Concerns linger that the profits came from wealthy
friends seeking political favors.
And then the conclusion, with which I heartily agree:
Rather than pointing fingers at the investigators, the
Clintons need to offer some apologies, plus the whole truth
of what went on with Madison, Whitewater and the travel
office. Nothing less will do.
That is the end of that editorial.
So, Mr. President, I could go on for a significant period of time and
review what we found out in the committee, rehearse the various things
that were said, comment once again on the inconsistencies and all of
the rest of that. I do not see that it serves much purpose. The issue
is very clear: How much more time does the committee need?
I believe that the offer made by the Democratic leader is for an
insufficient amount of time. The argument is made that the request made
by the chairman of the committee for no firm date is too much time. I
hope both sides can sit down and say somewhere between the offer made
by the Democratic leader and the request for an open-ended
[[Page S1561]]
inquiry made by the chairman, we can find a date that can satisfy the
two requirements, which are sufficient time to sift through the late-
arriving documents and enough time for us to hear from the witnesses
who are currently unavailable.
To me, it is not that hard to figure out. I hope that we can arrive
at that point instead of tying up the Senate in endless rehashing of
issues that, as I say, in my view, are not relevant.
I go back to the New York Times for the final summary of that when
the New York Times said editorially, for the Democrats to filibuster
this request will look like silly stonewalling.
Mr. President, I suggest the absence of a quorum.
Mr. SARBANES addressed the Chair.
Mr. BENNETT. I withdraw the request.
The PRESIDING OFFICER. The Senator from Maryland.
Mr. SARBANES. Mr. President, I always enjoy the opportunity for an
exchange with my distinguished colleague from Utah. I listened
carefully as he quoted from the Washington Post editorial headed
``Extend the Whitewater Committee.'' The Post then, in a subsequent
editorial headed ``Extend, But With Limits,'' said:
. . . but the Senate should require the committee to
complete its work and produce a final report by a fixed date.
It then goes on to say, and this may, in effect, get into the area
that the Senator was perhaps suggesting in his comments because I
listened very carefully and as I made the point myself, the proposal we
had from the other side was an unlimited extension.
Mr. BENNETT. Yes.
Mr. SARBANES. The distinguished Democratic leader said, ``Well, we
can't agree to an unlimited extension, but we are prepared to offer
carrying it forward.'' We have heard nothing back with respect to that.
So that is the play on this issue.
This editorial said:
Democrats want to keep the committee on a short leash by
extending hearings to April 3rd with a final report to follow
by May 10th. A limited extension makes sense, but an
unreasonably short deadline does not. Five weeks may not be
enough time for the committee to do a credible job. Instead,
the Senate should give the committee more running room, but
aim for ending the entire proceeding before summer when the
campaign season really heats up. That would argue for
permitting the probe to continue through April or early May.
And, of course, we had suggested April 3.
I know the Senator has quoted some editorials that say go on with
this thing. There are other editorials, of course, which take just the
opposite point of view.
Mr. BENNETT. Mr. President, may I respond to that very quickly?
The PRESIDING OFFICER. The Senator from Maryland has the floor. Does
the Senator yield?
Mr. SARBANES. I certainly yield to my colleague.
Mr. BENNETT. I have to leave the floor, and I thank my colleague from
Maryland for his courtesy. I simply say, Mr. President, that subsequent
editorial that the Senator from Maryland quoted is in exactly the vein
of what I am talking about, that I find the Democratic leader's
proposal to be too short a leash, but this Senator would not object if
we met the two objectives called for of enough time to sift through the
late-arriving papers and the ability to interview witnesses who are
currently unavailable. My only objection to the proposal made by the
Democratic leader is that it does not provide for meeting those two.
So I say to the Senator from Maryland, Mr. President, that this
Senator would be willing to have some kind of agreement along the lines
that he is now talking about. My objection is to the cutoff date in the
proposal made by the Democratic leader which I think is too short a
leash.
Mr. SARBANES. Mr. President, let me point out that there are other
editorial comments around the country which actually think this should
end right now, period.
The Sacramento Bee on March 2 had an editorial, ``Enough of
Whitewater.'' Let me quote a couple of paragraphs:
Senator Alfonse D'Amato, the chairman of the Senate
Whitewater committee and chairman of Senator Bob Dole's
Presidential campaign in New York, wants to extend his
hearings indefinitely, or at least one presumes until after
the November elections. The committee's authorization and
funding ran out Thursday, and the Democrats, in part for
related political reasons, want to shut the committee
hearings down. In this case, the Democrats have the best of
the argument by a country mile. With every passing day, the
hearings have looked more like a fishing expedition in the
Dead Sea.
I ask unanimous consent that the entire text of that editorial be
printed in the Record.
There being no objection, the editorial was ordered to be printed in
the Record, as follows:
[From the Sacramento Bee, Mar. 2, 1996]
Enough of Whitewater
Sen. Alfonse D'Amato, the chairman of the Senate Whitewater
Committee and chairman of Sen. Bob Dole's presidential
campaign in New York, wants to extend his hearings
indefinitely--or least, one presumes, until after the
November elections. The committee's authorization and funding
ran out Thursday and the Democrats, in part for related
political reasons, want to shut the committee hearing down.
In this case, the Democrats have the best of the argument
by a country mile. With every passing day, the hearings have
looked more like a fishing expedition in the Dead Sea.
Given the fact that D'Amato's mighty and costly labors have
so far caught little but crabs; that there is a special
prosecutor going over the same ground; that there have
already been nearly 20 months of Senate hearings, first under
the Democrats, then under the Republicans; that a couple of
House committees have held their own hearings; and that an
armada of journalists has covered the ground for more than
three years, you'd think that whatever Whitewater is had been
covered to death.
Thursday, the Democrats, though in the minority, managed to
use parliamentary devices to block the indefinite extension
that D'Amato asked for. They're willing, they said, to accept
a five-week extension to wrap up the hearings, then another
six weeks to allow the committee to write a report. That,
said D'Amato, sends ``the unmistakable message that (the
Democrats) want to prevent the American people from learning
the full facts about Whitewater.''
In fact, it ought to be plenty. Even if every charge were
true, the political cronyism and favoritism allegedly
bestowed in connection with the Whitewater development while
Bill Clinton was governor of Arkansas--and so far only
alleged--would be of no interest to any congressional
committee were it not for the fact that Clinton is present.
Similar shenanigans--and worse--occur routinely in state
after state. Why isn't D'Amato investigating Lamar Alexander,
who benefited richly from business cronies during his days as
governor of Tennessee and as president of its state
university?
There may well have been attempts in the Clinton White
House to cover up the dealings among the Clinton, the
Whitewater development company and the failed Arkansas
savings and loan that helped to bankroll it. There was
certainly a great deal of stonewalling and evasive behavior.
But Kenneth Starr, the special prosecutor, has been sparing
no effort to investigate both that and related matters. What
is it that D'Amato can credibly establish that Starr can't.
Mr. SARBANES. Mr. President, finally an editorial in the Atlanta
Constitution which calls for bringing this inquiry to an end. It goes
on to point out, ``one, that a recent Resolution Trust Corporation
investigation found no hint of impropriety by the Clintons regarding
their Whitewater involvement.''
It goes on to say:
The first couple is still under investigation by
Independent Counsel, Kenneth Starr, a former Reagan Justice
Department official, who can be expected to scrutinize the
Clinton's legal and business affairs rigorously. Any
additional sleuthing by Senator D'Amato would be a waste of
taxpayers' money.
I ask unanimous consent that that editorial be printed in the Record
as well.
There being no objection, the editorial was ordered to be printed in
the Record, as follows:
[From the Atlanta Constitution, Feb. 15, 1996]
Take D'Amato Off Clintons' Case
The Senate's Watergate hearings of 1973-74 were momentous,
delving into White House abuses of power and leading to the
resignation of a disgraced president and the imprisonment of
many of his aides. They lasted 279 days.
Next week, Sen. Alfonse D'Amato (R-N.Y.) and his fellow
Whitewater investigators will surpass that mark (today is the
275th day), and they have nothing anywhere near conclusive to
show for their labors. To put matters in context, all they
have to ponder is a fairly obscure 1980s real estate and
banking scandal in Arkansas.
With a Feb. 29 expiration date for his special panel
staring him in the face, D'Amato has the effrontery to ask
the Senate for more time and money to continue drilling dry
investigative holes. Specifically, he wants open-ended
authority and another
[[Page S1562]]
$600,000. That's on top of the $950,000 his committee has
spent so far, plus $400,000 that was devoted to a Senate
Banking Committee inquiry into Whitewater in 1994.
The partisan motives behind D'Amato's request couldn't be
more obvious. Here he is, a chief political strategist for
the leading Republican contender for the presidency, Bob
Dole, seeking to legitimize the committee's hectoring of
President and Mrs. Clinton well into the campaign season.
If the panel could demonstrate a glimmer of a hot new lead
connecting the Clintons to the Arkansas scams, D'Amato's
appeal for an extension might have merit. Invariably, though,
the committee's supposed revelations have evaporated for want
of substance. Witnesses who testified in the past are being
summoned back, often to go over familiar ground. Chelsea
Clinton's former nanny had to appear again this week, for
heaven's sake.
This is not to let the Clintons off the hook. They might
have allayed suspicions about themselves long ago if they had
promptly produced documentation of their Arkansas business
and legal dealings. But lawyerly reticence, however
politically unwise, by no means indicates guilt. Remember
that a recent Resolution Trust Corp. investigation found no
hint of impropriety by the Clintons regarding their
Whitewater involvement.
The first couple is still under investigation by
independent counsel Kenneth Starr, a former Reagan Justice
Department official who can be expected to scrutinize the
Clintons' legal and business affairs rigorously. Any
additional sleuthing by D'Amato would be a waste of
taxpayers' money.
Mr. SARBANES. Mr. President, the Greensboro, NC, News and Record had
an editorial headed ``Whitewater Hearing Needs To Wind Down.'' Let me
just quote a couple of paragraphs from that:
A legitimate probe is becoming a partisan sledgehammer.
Let me repeat that:
A legitimate probe is becoming a partisan sledgehammer. The
Senate Whitewater hearings, led since last July by Senator Al
D'Amato (R-NY), have served their purpose. It's time to wrap
this thing up before the election season.
Then they end that editorial with this comment:
Let the GOP use the fruits of D'Amato's labors as they will
in the coming campaign, but don't let the opposition party
run a smear campaign at public expense.
I ask unanimous consent that that editorial be printed in the Record.
There being no objection, the editorial was ordered to be printed in
the Record, as follows:
Whitewater Hearing Needs To Wind Down
A legitimate probe is becoming a partisan sledgehammer.
The Senate Whitewater hearings led since last July by Sen.
Al D'Amato, R-N.Y., have served their purpose. It's time to
wrap this thing up before the election season.
The committee has documented the Clinton's various
relationships with a bankrupt Arkansas savings and loan and
related enterprises. It has developed evidence of a damage
control campaign run from the White House. And it has
revealed a mean and petty episode involving the White House
travel office. The portrait of Arkansas politics curing the
'80s is not a pretty one.
All of this--including the mysterious, belated appearance
in the White House of documents that had been subpoenaed by
the committee months earler--will surely be politically
damaging to the Clintons. D'Amato's committee should sum up
its findings, publish them for all to see, and go on to
something else. The committee has done its work, sometimes
more than once.
Still, D'Amato and company haven't had enough. The New York
senator wants his mandate, which has already eaten up $1
million of your money, extended indefinitely. He has asked
for another $600,000.
Republicans charge that it has been the White House's
desultory compliance with the committee's requests that has
slowed its work, necessitating the extension of this
expensive and fruitless exercise. But that argument is
becoming tedious.
The committee has already subpoenaed everybody and every
document in sight. The committee's thoroughness is not in
question. The committee's excesses are. They have begun to
eat into its credibility.
Senator D'Amato tries to explain away his obvious conflict
of interest by making the laughable argument that his role as
New York chairman of the Bob Dole campaign has no connection
to his use of the Senate committee. Here's what's happending.
D'Amato is carrying on Dole's campaign in the Senate with
repetitious hearings that highlight testimony from the White
House staff, then outside the Senate chambers with press
conferences. Covering Whitewater once in 1995 was a
legitimate Senate inquiry. Rehashing it in 1996, an election
year, is exploiting the forum to damage the president.
What began as only a partly political exercise has over the
months become blatantly that, thanks to D'Amato and his North
Carolina ally, Sen. Lauch Faircloth.
The committee had good reason to look into the Clintons'
role in the Madison Guaranty Savings & Loan mess and related
matters. But the panel majority, and especially the chairman,
have turned a search for the truth into a partisan vendetta
against the Clintons. Not even a casual observer of these
proceedings could miss the contempt that the committee
chairman has for the president and his wife. Allowing these
hearings to go on indefinitely would be giving D'Amato--and
by extension the legislative branch--a license to harass the
executive.
There's no reason to let the Clintons off the hook. An
independent counsel is plowing the same ground--including the
serious allegations that the White House may have attempted
to obstruct justice and that Clinton exercised undue
influence over savings and loan regulators while governor of
Arkansas. There is no need for taxpayers to pay for this work
twice and then again, particularly not when the Senate
committee has so obviously become an arm of the Republican
campaign to unseat the President.
Let the GOP use the fruits of D'Amato's labor as it will in
the coming campaign. But don't let the opposition party run
its smear campaign at public expense.
Mr. SARBANES. Mr. President, I yield the floor.
Mr. FAIRCLOTH. Mr. President, it would appear that we are going into
not a debate on the issues here, but a debate on who can find the best
editorials. I say to the Senator from Maryland that he read from the
Greensboro, NC, News and Record. I have found, over the few years that
I have been in the Senate, when I get an unfavorable editorial in the
News and Record, I finally did something right. But since we are going
into the editorials, I will read one from USA Today. I am quoting from
the last four paragraphs:
Why did it take so long to find the papers? Subpoenas for
Travelgate and Whitewater documents are many months old.
Failure to provide them quickly warranted legal action. The
statute of limitations for filing suits against Madison
lawyers lapsed just days before the bills were produced. How
could the White House have missed them? Mrs. Clinton and the
President have raised questions, not Republicans. They have
created the impression they may be covering up something by
being less than thorough in responding to legitimate demands
for information. This is not the first time Mrs. Clinton has
run into such a problem. She never fully explained profits
from a 1970 commodity trade--
And they are being kind to her when they say ``never fully
explained.'' She never even slightly explained.
Concerns linger that the profits came from wealthy friends
seeking political favors. There has never been any
explanation of that. Rather than pointing fingers at the
investigators, the Clintons need to offer some apologies,
plus the whole truth about what went on with Madison,
Whitewater, and the travel office. Nothing less will do.
Now, that is from USA Today, January 10, 1996.
Mr. President, we have been through this charade with the
administration for more than 2 years now. It is time that it ends, and
the length and amount of time that we have expended in these
investigations is brought on not by the Republicans on the committee,
but by the delay of the White House in providing subpoenaed
information. That is simply the reason we are here today asking to
extend the length of the resolution.
Mr. President, the central issue in this debate is this: Will the
U.S. Senate, for the first time in my memory, take the affirmative step
of refusing to investigate a scandal of public corruption? That is very
simply what we are talking about doing with the filibuster here today--
it is that the Senate is saying, ``We are not going to investigate
these people. We do not want to get into it.''
The length of the investigation is irrelevant. As I said, the delays
have come about not by the investigating committee, but by the White
House itself. It has been nothing more than an attempt to wear it out,
to use it up, to exhaust the people, to exhaust the money, to hope it
would go away, and the length and time set for the investigation would
lapse.
Just a few weeks ago, we received key documents from Mark Gearan. We
received new documents from Harold Ickes, the White House Deputy Chief
of Staff. And even just this week, still documents are coming in from
White House lawyers. If the legal staff and the White House do not know
where their notes and papers are, maybe that explains some of the
confusion we see coming out of the White House. What do they know if
they do not know where their notes and papers are?
Last December, on the Senate floor, we voted for a resolution to
subpoena William Kennedy's notes from a November 5, 1993, meeting
concerning Whitewater. The full Senate voted a subpoena. And last
Friday, Bruce
[[Page S1563]]
Lindsey admitted that he, too, had notes from this meeting. Last
Friday. That is 2 years and 3 or 4 months. He brought those notes
forward for one reason, which is that he believes this investigation is
going to go on and he has a fear of obstructing justice. Can you
imagine someone of that rank at the White House telling the committee
that he did not take notes and then find them after the deadline has
expired? We are asked to believe that. Furthermore, the accidental
discovery of documents always seems to occur on Friday afternoon after
the news deadline. This is when Bruce Lindsey turned over his
documents. This is when the First Lady's billing records were released.
I do not think a committee of the U.S. Senate should be treated with
the disrespect the White House has shown this committee.
The cost of the investigation is not small, but I have asked, ``Can
we put a price on the integrity of the White House?'' Mr. President, it
is worth discussing how we arrived at this point? It is worth reviewing
how Whitewater became a congressional issue, because it tells us
something about the failure of the savings and loan industry and also
tells us a lot about the ethics of Bill and Hillary Clinton?
In February 1989, Madison Guaranty Savings Loan failed. The failure
cost American taxpayers an estimated $60 million at that time. I see
figures today that it is over $70 million. But, whatever, it was a lot
of taxpayer dollars. In fact, the entire savings and loan crisis cost
the American taxpayers $150 billion--an unbelievably staggering amount
of money. The Banking Committee has every right--and, in fact, a duty--
to review the cause of the crisis. Is there any question that the
American people, who are paying this bill--they are paying the $60 or
$70 million Madison lost, and they and their children and grandchildren
are going to pay the $150 billion, and they have a right to know where
the money went and how it happened.
While Madison was a small institution, its failure was one of the
worst in the Nation. When it failed, the cost to the taxpayers was 50
percent of the assets of the institution--50 percent.
In Arkansas, 80 percent of the State-chartered S&L's failed while
Bill Clinton was Governor. Jim McDougal took over Madison from 1982 to
1986. In 4 short years, the assets grew from $6 million to $123
million. Now, if we will back up and look at what assets mean, that
means he borrowed $117 million more in a period of 4 years. He borrowed
$117 million that wound up being guaranteed by the taxpayers of this
country. In 4 years, he borrowed $117 million that the taxpayers of
this country wound up paying off for him. Part of that money, a good
bit of it, went to Whitewater Development.
He increased his loans to insiders. That is what Bill and Hillary
certainly would have been, since they were his partners in a real
estate deal. He increased his loans to insiders. When he took it, the
insider loans were $500,000. Four years later, he had increased his
loans to insiders, which were Bill and Hillary Clinton, the President
and First Lady, to $17 million. Whitewater was one of the ventures that
caused Madison to fail.
Furthermore, the claims that the Clintons lost money is false. They
never had any of their money at risk. You cannot lose money you did not
have. It was a sweetheart deal for the new Governor, tracking and
congruent with the commodity trade in which Hillary Clinton earned
$100,000. Do you know how she earned $100,000 in the most speculative
business in the world? She read the Wall Street Journal. After she
earned $100,000, without explanation, in this brilliant, brilliant
trade, worked by a commodity broker named Red Bone who was investigated
for everything, she quit. No more commodity trades. If she possessed
the skill to turn $1,000 into $100,000 in that length of time by being
First Lady, she is wasting the most valuable and potential money-making
asset this Nation has ever known.
The Pillsbury report that has been referred to many times by Senators
in the minority showed that the taxpayers of this country lost far more
money on Whitewater than the Clintons. To me, that alone is a scandal.
Furthermore, there are reports in today's Washington Post that Mrs.
Clinton herself was much more involved in Whitewater than we believed,
that she was fully aware that the McDougals had put more money into the
deal than the Clintons did. Again, we have two Yale-educated attorneys
that today tell us they were oblivious to the whole affair, that they
did not understand it. It is almost beyond the concept of most of us on
the committee to see two of the ``smartest lawyers''--said her press
people or somebody; we were clearly often told Mrs. Clinton was one of
the 100 smartest lawyers in the Nation, and he certainly was at
Oxford--could not buy 300 acres of cheap Arkansas land without a
national scandal. The two smartest lawyers in the country could not buy
300 acres of cheap Arkansas land without creating a national scandal.
Why? Because it was not a clean legal deal. That is why you could not
buy it without a scandal. Madison Guaranty was a high-flier savings and
loan. It has been called the personal piggy bank for the political
elite in Arkansas. I called it a calabash or a pot of money that the
politicians were dipping in and taking out. I do not often agree with
the editorial pages of the New York Times, but they have called the
Whitewater hearings a stew of evasion and memory lapses. They do not
often get it correct, but they did that time.
Mr. President, the central issue in Whitewater has been whether
Madison received favorable treatment from Arkansas savings and loan
regulators because of Jim McDougal's close ties to President Clinton.
Essentially, the question is this: Did the losses to the taxpayers
increase because Jim McDougal pressed his case with State regulators,
which President Clinton, then Governor Clinton, Bill Clinton, had
appointed?
The notes from Gearan's meeting, from the meeting he was in,
suggested the White House wanted to send somebody down to Little Rock
to get the story straight with Beverly Bassett Schaffer, the State
savings and loan regulator. Get the story straight. The folks we were
talking about, if we send them--and I do not remember the initials--but
if we send CP, HL, and CB, it will come out. We cannot send them. Maybe
we could get somebody from New York to go. They probably would not be
recognized very quickly in Little Rock. Maybe we can get somebody from
here or there to go. If we send our people, they will be recognized; it
will get out.
Well, if it were an honest, clean trip, what was there to get out?
Why not go down and talk to Ms. Schaffer and say, ``Here is what we are
here for. Tell us the truth.'' That was not the purpose of the trip.
The purpose of the trip was to get the story to match.
Had the American public been given the real picture in the wake of
the savings and loan crisis, I think they would have reacted very
differently to the inside quid pro quo way of doing business in
Arkansas and Little Rock, particularly since the American taxpayers
paid for the lax regulations. We will be paying for this into the whole
next century.
Mr. President, Whitewater extends even farther than Madison Guaranty.
It involves a small business investment corporation called Capital
Management Services. This company was run by a man named David Hale.
It, too, served as a personal bank for the politically connected in
Arkansas. Its purpose was to make loans to the disadvantaged, but that
turned out to be the rule-making politicians of Little Rock.
Regrettably, the American taxpayers paid over $3 million for the
failure of Capital Management.
Mr. President, it is a fact that Capital Management made a $300,000
loan to Whitewater. Now, inside the beltway of Washington and in the
vernacular of the Congress, $300,000 would not even be a blip on the
screen. To the average American, $300,000 is an enormous amount of
money.
Now, Capital Management made a $300,000 loan to Whitewater. That is
far more than anybody had put into it in real money. We have strong
evidence that President Clinton asked this loan be made. I think time
will tell that David Hale is telling the truth when he says that Bill
Clinton pressured him to make this loan to help benefit Whitewater. If
it is not true that Bill Clinton pressured David Hale to make this
loan, then we need to--and I hope
[[Page S1564]]
the Democrats would be pushing to extend these hearings so we can bring
David Hale to the hearings and let him clear Bill Clinton's name.
If it is true, if it is true that the President, now President
Clinton, pressured him, then that needs to be brought to the light and
let the public see it.
Here again, the American taxpayers have paid to subsidize President
and Mrs. Clinton's failed real estate venture in Arkansas. Again, our
Whitewater hearings have uncovered that the White House was aware of
the Hale investigation from the very beginning. They had testimony from
a career SBA official that the SBA briefed Mike McLarty in May 1993,
about the SBA investigation of David Hale. They briefed McLarty about
the SBA investigation of David Hale, the man who said he was pressured
by then-Governor and now President Bill Clinton to make the loan.
That is essentially what these hearings are about, the loss of
taxpayer money in Madison, Whitewater, and Capital Management. We have
never had Mr. Hale as a witness. We need him as a witness and we need
to wait until the legal proceedings going on in Little Rock are over
and bring him as a witness.
Mr. President, on another issue, Vince Foster's death and the
handling of his papers on the eve of his death has raised the most
questions with the committee. We know for a fact that the First Lady
spoke with her assistant, Maggie Williams, before Maggie Williams went
to the White House and Vince Foster's office. In fact, she spoke to her
in almost record time that you could drive from Maggie Williams' house
to get in Vince Foster's office. And we know by the telephone records
when she left her home and we know by the Secret Service records when
the alarm went off in Vince Foster's office and she went in. And she
did it in almost record time.
We asked her before the committee, why did she go to the White House?
And the explanation was a somewhat vague, that she was out riding and
had to be somewhere. Well, she was somewhere, in Vince Foster's office.
We know that they spoke later in the evening, immediately upon Maggie
Williams' return from the White House. We know that she called, Mrs.
Clinton called her. She went to the White House. We know she went to
the White House, she went to Vince Foster's office, she went directly
back home, and she called the First Lady. That we know.
Then, in the morning, 1 a.m., Maggie Williams was talking to Susan
Thomases. We have the sworn testimony of uniformed Secret Service
Officer Henry O'Neill, who saw Maggie Williams remove documents from
Vince Foster's office on the night of his death. All of this is
undisputed fact.
Within the last few weeks we have gathered more information that I
think gives credence to the notion that files were indeed removed on
the night of Mr. Foster's death. First, two files relating to the
Madison Guaranty were sent back to the Rose Law Firm by David Kendall.
They had to have come out of Vince Foster's office. Yet these files
were never part of the box that Maggie Williams said she took from
Foster's office 2 days after his death. These documents were reviewed
and cataloged by Bob Barnett, the Clinton's other attorney. The two
Madison files never appeared there.
Mr. President, what we have seen is massive inconsistency and
confusion. It has gone on and on and on. The truth, as I use a poor
simile, is that getting information out of the White House was akin to
eating ice cream with a knitting needle. And that is about what it has
been, a little bit here and a little bit there. But never enough to
satisfy.
This is the way it has gone on since the beginning of the hearings
and unbelievable stories we have been asked to believe. We can go back
to the Maggie Williams/Susan Thomases flurry of telephone calls, and
also to Mrs. Clinton's explanation of them.
Maggie Williams: I do not know why I went to the White House. I could
not possibly have taken anything out. Yet she met a uniformed 18-year
veteran of the Secret Service in a 5-foot hall, and neither of them are
small people. He had no reason to tell it wrong. She immediately calls
Mrs. Clinton from her home phone when she gets back to her house, and
she went directly back to her house. There were many calls to Susan
Thomases and Mrs. Clinton over a very short period of time. And the
explanation we have for these calls is this one: They were
commiserating with each other. They were making sure everybody was all
right. They were checking to see if the bereaved were comfortable.
Mrs. Clinton herself said that these calls were commiserating and
there was a lot of sobbing going on on those calls that night.
I find that extremely difficult to believe, and if I am wrong I would
be delighted to be corrected by the facts. But we find no calls from
Mrs. Clinton to Mrs. Foster or the children. The telephone records have
not indicated those calls existed, and so far they have not been
brought forward. I believe the documents that Maggie Williams delivered
that night are the now-famous missing billing records. I fully believe
that Maggie Williams had them in her arms that night. Certainly
everybody agrees that Vince Foster's handwriting was all over these
billing records--in the original writing, not copies. The records were
copies but his handwriting was the original. It was all over them.
Many have said, Well, what is it in the billing records that is
significant?
There are two very important significances. One of them is that they
were subpoenaed by a Senate investigating committee, they were
subpoenaed by an independent counsel, and whoever knew where they were
should have brought them forward regardless of what they said. They
were subpoenaed papers.
But the significance--another significance is the work on the Castle
Grande project is important. That was the one project that RTC said:
There may be legal liability for the Rose Law Firm. Is it any wonder
that they stayed hidden until after the statute of limitation had
expired?
The First Lady had over 14 calls with Seth Ward, according to her
billing records. Seth Ward was the Castle Grande man. This was a known
sham deal identified by the RTC as a sham deal. Is it reasonable to
think that one of the 100 smartest lawyers in the country could have
had 14 telephone calls with a client doing a sham deal and not suspect
it or known it was wrong? I think she knew well what she was doing. She
had to know. That is why the documents did not turn up.
Castle Grande cost the American taxpayers $4 million. The RTC tried
to collect some of the money. But Mrs. Clinton had disguised work on
this issue. No wonder they were so concerned about the statute of
limitations expiring in 1994 but extended until the end of 1995. This
is what sparked the meeting that we saw in 1994.
Mr. President, in conclusion, we still have key witnesses to call,
witnesses that know where the bodies are buried, witnesses that will
talk and can talk, but they are tied up in a trial in Little Rock now.
We need to get them here. Jim McDougal, Susan McDougal, and David Hale.
Can you imagine if we held Iran-Contra hearings without Ollie North or
John Poindexter or Bud McFarland? What would the hearings show? Can you
imagine if the Republicans wanted to end these hearings and had wanted
to end them? The media would have crucified us. It would not have
happened.
To conclude, here are some of the questions that need answers. These
we need answered before we conclude the hearings.
Who placed Mrs. Clinton's subpoenaed records in the White House book
room? Nobody has given me any argument that the White House book room
and Mrs. Clinton's private adjoining office are the two most secure
rooms in the world. If they are not, they should be, because that is
where the President spends his private time.
Were those records in Vince Foster's office the night he died? If so,
who removed them? And where were they stored for 2 years?
Clearly, the records did not walk out of Vince Foster's office. They
were walked out, and whoever walked them out knows where they carried
them and where they were hidden for 2 years.
Did White House officials lie to investigators about what went on in
the hours and days after Vince Foster's death? Did the White House
response
[[Page S1565]]
team obstruct justice by attempting to control the scope of the
investigation? Did the White House Whitewater response team obstruct
justice by attempting to tamper with a witness? Did then-Governor
Clinton pressure a local judge to make an illegal loan to his business
partner? These we can answer if we get the people here.
Why did the Clinton business partner pay most of the Clintons' share
of Whitewater Development Corps. bills? What motivated his generosity?
Was the administration involved in any action which prevented, impeded,
or obstructed the administration of justice? If so, who directed it,
who carried it out, and what was done? Why cannot the American people
get the answers to these questions?
If there is nothing to hide, which has been contended by the
Democratic side and the White House, why not bring forth the facts,
bring forth the documents and stop letting them out little by little by
little? Nothing would clear the name of the Clintons quicker than to
bring forth all of the facts, bring the people in from Little Rock, and
conclude the hearings.
Would we be literally facing a filibuster if there were nothing to
hide? If there is not, let us end the filibuster, and let us get on
with the investigation.
Mr. President, I think it is time that we get on with the
investigation. I agree with the Democrats: We need to bring it to a
conclusion, but we need to complete our work before we bring it to
conclusion.
Mr. President, I see my colleague and friend from California is on
the floor. So at this time I will yield the floor.
Mrs. BOXER addressed the Chair.
The PRESIDING OFFICER. The Senator from California.
Mrs. BOXER. I thank my friend for yielding the floor at this time.
Mr. President, what I would like to do in the beginning of my remarks
is to correct the record on a couple of matters that the Senator from
North Carolina raised. First of all, the statute of limitations on the
Castle Grande transactions had not expired when the Rose Law Firm
billing records were found in the White House in early January 1996. In
fact, by a agreement between the RTC and the Rose Law Firm, the statute
of limitations had been extended until March 1, 1996.
So, Mr. President, we could have a disagreement on whether we ought
to continue these hearings, but let us not get on the floor of the
Senate and say things that are not true. It is simply wrong to suggest
that the documents were discovered because the statute of limitations
had expired when, in fact, the statute of limitations had not expired.
Second, Mr. President, I think it is very important when colleagues
stand up and make comments that there be a basis for those comments.
I am happy to yield to my friend for a question.
Mr. FAIRCLOTH. I am very much aware, and we all are, that the statute
of limitations was not applicable to the First Lady's business. But as
a member of a Rose Law Firm, as the attorney involved, and as a billing
attorney involved in this--and she was the billing attorney on Castle
Grande--she would certainly have a responsibility, maybe not a personal
financial responsibility, but she very much would be involved in the
proceedings.
Mrs. BOXER. If I might reclaim my time, I think my friend is not
contradicting what I said. I will repeat what I said.
The statute of limitations had been extended until March 1, 1996, and
it is wrong to suggest that the documents were discovered because the
statute of limitations had expired. That is the only point I am making
to my friend. I think it is important we not stand up here and say the
statute had expired.
I am going to have to take back my time and tell my friend he is
going to have to seek time on his own only because of a pressing
appointment in my office. I need to make this statement and finish it,
if I might.
I am glad to yield to my friend, but I hope he would have a question.
Mr. FAIRCLOTH. My question is in answer to the statement. Mrs.
Clinton's attorney, Mr. Kendall, said it was a legal question whether
it involved the Rose Law Firm or Mrs. Clinton personally. I yield the
floor.
Mrs. BOXER. I would just restate that whether it did or did not is
not my point. My point is a statement was made here that the statute
had expired, and the implication is that, if there was something wrong
in the billing records, the First Lady and the Rose Law Firm would be
off the hook. The statute did not expire. In fact, we know the billing
records were turned over, and actually underscored what the First Lady
had said, that the time she put into that is minimum.
That is the first point I want to correct, Mr. President.
Second, I want to quote from the Madison Guaranty Savings and Loan
and Whitewater Development Co. supplemental report written by
Pillsbury, Madison & Sutro. And we know part of that firm is Jay
Stephens, who has strong ties to the Republican Party. This is what
they found. I am going to state this and quote directly from the
report.
There is no basis to assert that the Clintons knew anything
of substance about the McDougals' advances to Whitewater, the
source of funds used to make those advances, or the source of
the funds used to make payments on the bank debt.
That is on page 77.
On page 78, quoting from an investigative report that cost about $3
million--excuse me, I stand corrected, $4 million--page 78:
There is no basis to charge the Clintons with any kind of
primary liability for fraud or intentional misconduct. The
investigation has revealed no evidence to support any such
claim, nor would the records support any claim of secondary
derivative liability for the possible misdeeds of others.
Page 78. ``It is recommended''--and this is very important, I say to
my colleagues--``it is recommended that no further resources be
expended on the Whitewater part of the investigation.''
Now, this is an objective report, paid for by the taxpayers, done by
the firm of Pillsbury, Madison & Sutro, a great law firm, including Jay
Stephens, known for his ties to Republicans, and what do they say?
It is recommended that no further resources be expended on
the Whitewater part of the investigation into Madison
Guaranty.
So what are we doing in the Senate? Ignoring this, ignoring this and
moving on with an investigation of a Senate select committee. I think
we ought to start listening to people who are objective on this, who
have no political ax to grind. As a matter of fact, people thought in
the beginning, when Pillsbury, Madison & Sutro got that: My God, this
is going to be political.
Well, it turned out that the Clintons have been cleared.
Now, I know that annoys a lot of my Republican friends, and I feel
sorry for them, that this is the biggest thing in their lives, some of
them. But I have to tell you there are other things in the lives of the
American people that have to be addressed by this Senate. And I have to
tell you, these attacks on the First Lady of the United States, these
personal attacks, these personal attacks on the President of the United
States border, in my opinion, on being unpatriotic. It is my personal
opinion. But that is up to each individual Senator. And clearly it is
up to the people of the country to decide.
I have to say, listening to these attacks, when my colleague says he
believes David Hale, well, that is his right. This is a man who has
already pleaded guilty to two felonies, as I understand it. And not
only that, but we have word that the State is prosecuting him as well.
And this is the individual that is quoted in this Chamber to prove that
our First Lady and our President are not good human beings. Well,
again, it is every Senator's right to call it the way he sees it, but I
think the American people see right through this. And who are they
going to believe? A man who has already stated that he committed two
felonies or Pillsbury, Madison & Sutro, which says in their report: Let
us spend no more time on this investigation. The Clintons are not
guilty of anything.
Now, I supported every single vote here to move this investigation
forward. I voted to set up the special committee. I voted to extend the
special committee. I had nothing but support for those two resolutions.
We reached across party lines. We worked together. We shaped
resolutions that were not political. But I say it is time to step back
and wind this thing down.
I have to tell you, the offer that we Democrats have made is
extremely
[[Page S1566]]
generous in terms of the time and the allocation of funds we have
recommended. Let me prove that point. We have already heard from 121
witnesses, some of them two and three times, mind you. They are brought
back. They have to pay for attorneys. Some of them do not have means to
do it. Some of them will be paying that off for decades, if ever. But
we have done it.
We have met for 230 hours of hearings. I want you to keep that number
in mind--230 hours of actual hearings. Now, the Democratic leader and
ranking member, Senator Sarbanes, and all of us are saying, let us have
an additional 5 weeks of hearings, almost $200,000 more, recommending
also that there be 4 weeks allocated in addition to write a report, and
our Republican colleagues say it is not enough. It is not enough.
Why? Why? This is their latest reason. Because they cannot get up
here and say we want to keep investigating, keep the story alive
because it hurts the First Lady and it hurts the President. You cannot
say that. But this is what they say. In the court, there is a hearing.
There is a trial in court, and we need to call those people. We need to
wait.
Let me quote from a letter signed by our ranking member, Senator
Sarbanes, and our chairman, Al D'Amato, that was written in October
1995. This is signed by both.
The special committee does not intend to seek the testimony
of any defendant in the pending action brought by your
office.
This is to Ken Starr.
Nor will it extend to expand upon the grants of immunity
provided to persons by your office. Indeed, Senate Resolution
120 expressly provides the special committee may not immunize
a witness if the independent counsel informs the committee in
writing that immunizing that witness would interfere with the
independent counsel's ability to prosecute.
So, in writing, our chairman said he had no intention of calling any
witnesses. Now, the big reason we have to wait is we have to call the
same people who are going before this jury.
Now, let me say something. And this was brought out by our ranking
member, Senator Sarbanes, but it bears repeating. I wish to say to my
Republican friends, this is America. We do not have trials in secret in
this country. Every one of these people involved in the trial, all the
people who Senator Faircloth says he wants to hear from, they are going
to be in that courtroom and we are going to hear from them. But, no,
that is not enough. We want to play prosecutor. You know, this is not
``L.A. Law.'' This is the Senate of the United States of America. We
are legislators, not prosecutors. That is why we have the independent
counsel.
And by the way, does the independent counsel have any limits to his
investigation? The answer is no. He has, as I understand it, 100 FBI
agents on this matter and 30 lawyers; unlimited sums of money. But we
are going to play prosecutor. Maybe some of them are jealous; they want
to be prosecutors. Well, they ought to do that and not be Senators.
That is fair. But do not turn this Senate into a group of prosecutors
because that is not our role. That is why we have the independent
counsel. Take the politics out of this thing. So we have had 230 hours
of hearings, and now we are offering another 5 weeks.
Now, let me say this to anyone who is listening. I sat down with my
pen and figured out how many hours of hearings we could have under the
Democratic proposal. Let us say we worked 8 hours a day, taking an hour
for lunch like most Americans, 8 hours a day, and held those hearings 5
days a week. Most Americans work 5 days a week. I think it is a sound
idea myself. We could hear from so many witnesses. We could hear from
100 witnesses, maybe more.
As I figure it, we would have 175 hours of additional hearings. They
have only had 230. They could have another 175 hours. What happens if
we decide to work 10 hours a day? Just work a little harder, take an
hour for lunch, a 10-hour day. We could have another 250 hours of
hearings under the Democratic proposal.
We have only had 230. So we could just do as much as we have done,
plus. If my Republican friends are so anxious to work on this, let us
get to work. Let us go. Let us get your witnesses, let us line them up,
an hour at a time. Let us do our work.
But, no, as the ranking member has pointed out, there are some weeks
they have one witness. They harangue them for 9 hours--and I mean
harangue--to no avail, by the way. So if we are really serious, the
Democratic alternative has offered them more hours than they have
already spent. So let us stop saying that we want to close it down. By
the way, some Members on my side do want to close it down. They do not
want any more hours. I happen to believe let us close it down in an
orderly fashion. So I am supporting this additional 5 weeks, with 4
weeks to write a report.
I just cannot understand why my Republican friends do not want to
take this, if they are serious about saying they want to get their work
done. They want to hear from these witnesses in the jury trial. We can
listen in, just as all Americans can, and read all the reports about
the trial and get the information we need. If we feel we need to take
more action legislatively because we found out new information, we can
do that.
By the way, I also point out we do have a Senate Banking Committee
that can meet any day of the week. Why do we need to hire all these
special lawyers they bring in? They go on television every night and
report, move their careers up the line. At what cost? At what cost? We
have very good people on staff. We can do some of this in the Senate
Banking Committee.
So we are legislators, not prosecutors. The Democratic alternative
gives you more hours than you have already expended on this matter. The
only reasonable conclusion I think the American people can draw is that
that is not their interest. Their interest is in dragging this out
until election day--until election day.
I have to tell you something. It is not working for them. From a
political standpoint, if I were being political, I would just let them
go right ahead, because the American people are disgusted. They are
watching this, and they are saying, ``This is incredible. These people
are meeting back here in Washington, and what are they doing? Nothing
to make our lives better, nothing to make our lives better. As a matter
of fact, spending $600,000''--which is the proposal of the
Republicans--``which could be better spent either on deficit reduction
or restoring some of the cuts to education they so happily made here.''
Teachers are being laid off all over who teach reading to children,
because of the actions of this Senate. They could not find the money
for education. But boy, oh, boy, they find it pretty easy for this.
I have a Superfund site in San Bernardino, CA, where a poison plume
is moving down into the water supply. That cannot be cleaned up because
the Republicans, who control this body and the other body, do not even
have the budget passed. I am on the Budget Committee. We are supposed
to be working on the next budget. They do not even have the current
budget passed.
But, oh, no, we have to talk about Whitewater. We need $600,000, not
to restore some of these cuts, not to reduce the deficit, not to clean
up Superfund sites, not to raise the minimum wage. You do not even need
money to do that; you just need time on the floor to vote on it. It is
at a 40-year low. People try to live on it. They cannot take time for
that.
I mean, it is just amazing to me. So politically, as far as I am
concerned, when people look at this Congress, they are saying, ``We
didn't expect this kind of change. We didn't expect a whole breakdown
in the budget process. They can't even get their act together to pass
the debt.'' Hurting our ratings because we cannot even do our job. But
they have a lot of time for Whitewater.
So maybe I should not be here complaining about it. Maybe,
politically speaking, it will help, help change who is in control
around here. But be that as it may, I have to say what I think. What I
think is that this offer from the Democrats to extend these hearings
for 5 weeks, another 4 weeks to write a report, if we got our act
together and worked 8, 10 hours a day, we could just have well over 100
witnesses and wrap this up and get on to the work and keep this out of
the political arena.
People want job training, education. They want pension protection.
They
[[Page S1567]]
want health insurance that is portable. We have a great bipartisan
bill. Why is that not up here? The Kassebaum-Kennedy bill will protect
our people from getting their insurance canceled because of a
preexisting condition. It would allow them to take that health
insurance with them.
I ask you, what is more important for our people, standing up and
berating the President and the First Lady on something that happened
years and years ago, where the special counsel has all the resources he
needs to bring justice, or doing the work of the U.S. Senate? I am
absolutely amazed that, after all the bipartisanship we have had on
that committee over so many years, our ranking member and our chairman
cannot agree when we have offered hours and hours of hearings to them.
It is extraordinary to me. I think this issue of the trial is a false
issue. Again, this is not going to be a secret trial. So, Mr.
President, I am clearly distraught that this is the priority of the
U.S. Senate.
Mr. President, I ask unanimous consent that I may speak for 3 minutes
on a different subject. Then I will yield the floor.
The PRESIDING OFFICER. Is there objection? Hearing none, so ordered.
Mrs. BOXER. Thank you so much, Mr. President.
____________________