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First lady in spotlight of dual controversies

GRAPHIC

January 8, 1996
Web posted at: 11:35 p.m. EST

From Correspondents Claire Shipman and Judy Woodruff

WASHINGTON (CNN) -- When Bill Clinton was campaigning for president in 1992, it was Hillary Rodham Clinton who helped her husband weather a storm of scandals that clouded his candidacy in its early days.

Now, it's 1996, and Mr. Clinton is up for re-election. And so far, it is Mrs. Clinton who's facing the hottest fire.

The fire was fueled by Republican reaction to documents released by the White House relating to Whitewater and firings at the White House travel office. Republicans say the documents prove Mrs. Clinton misrepresented her level of involvement in both matters.



"The fact that every week or month there are new little revelations, is what is making this a drib and drab scandal that takes on connotations of a different nature than what it would have been."

-- Rep. Jim Leach, R-Iowa

The last few days have produced a barrage of accusations from Republicans about her honesty and punishing headlines in mainstream publications.

NEWSWEEK

"Hillary: Saint or Sinner?" cried a Newsweek cover story.

"Clearly, the first lady has some explaining to do," The Washington Post editorialized.

The conservative columnist William Safire went so far as to call the first lady "a congenital liar" in an piece titled "Blizzard of Lies."

On its editorial page, The New York Times wrote that new revelations about the Clintons "represent a significant political advantage for Republicans, an advantage created by Mr. and Mrs. Clinton's obfuscations."

Republicans have wasted no time seizing that advantage.

"Put Bill Clinton in that crossfire and send him and Hillary back to Arkansas to face the music," said presidential candidate Pat Buchanan. (68K AIFF sound or 68K WAV sound)

"The fact that every week or month there are new little revelations, is what is making this a drib and drab scandal that takes on connotations of a different nature than what it would have been," said Rep. Jim Leach, R-Iowa.

Critics focus on alleged inconsistencies

Critics have pointed to a number of alleged inconsistencies in statements from the first lady.

Mrs. Clinton has said her role representing the failed Madison Guaranty Savings & Loan, part of the Whitewater investigation, was minimal. Critics say her role was far more significant.

whitewater

Records released by the White House last Friday showed Mrs. Clinton billed Madison Guaranty for 60 hours of work over a 15-month period. The S&L was owned by James McDougal, the Clintons' partner in the Whitewater real estate venture,

Appearing on the ABC News program "This Week with David Brinkley," Sen. Alfonse D'Amato, head of the Senate Whitewater Committee, said the billing records showed "tremendous inconsistencies" with Mrs. Clinton's sworn statements to federal regulators that she performed minimal work for the S&L.

Clinton's personal lawyer, David Kendall, accused D'Amato and his aides of making false charges.

In a letter to D'Amato released by the White House, Kendall said, "Since you have made these allegations, in fairness you ought now to state the specific factual basis for them. I don't believe you can."

New memo comes to light in 'Travelgate'

Mrs. Clinton has said she played only a minor role in the controversial firing of eight employees of the White House travel office. Critics say she ordered the firings, and a memo that came to light last week appeared to support the contention.

In the two-year-old memo, former White House director of administration David Watkins wrote that that "we ... knew there would be hell to pay" unless there were firings in the travel office "in conformity with the First Lady's wishes."

Mrs. Clinton's defenders have suggested Watkins wrote the memo because he was angry at having been reprimanded over his handling of Travelgate.



"You know, what I've learned in 30 years in this town, is ethics investigations and partisan politics don't mix, criminal investigations and partisan politics don't mix, they should all leave this stuff to the professionals and go on with running the country as they were elected to do."

--Robert Bennett, Mrs. Clinton's attorney

ABC News said it had found a second Watkins memo, written before the reprimand, quoting Mrs. Clinton as saying, "We need those people out. We need our people in."

White House spokesman Mark Fabiani, who has been handling the Whitewater and Travelgate affairs, did not immediately respond to a request for comment on the report.

Friends of Hillary dismiss allegations

Mrs. Clinton's supporters insist the latest swirl of accusations are much ado about nothing.

"This is an investigation in search of a problem," said Ann Lewis, Clinton's deputy campaign manager. "This investigation has never had a single act of wrongdoing confirmed, and so they keep searching further and further ahead." (119K AIFF sound or 119K WAV sound)

"You know, what I've learned in 30 years in this town, is ethics investigations and partisan politics don't mix, criminal investigations and partisan politics don't mix, they should all leave this stuff to the professionals and go on with running the country as they were elected to do," said Mrs. Clinton's attorney, Robert Bennett. (204K AIFF sound or 204K WAV sound)

The timing is bad for the White House. Mrs. Clinton is about to begin a media tour to promote her book on raising children and will face the press almost daily. But officials here thought it would be damaging to pull her back, and for the time being are keeping their fingers crossed that the looming clouds won't produce more than a flurry.

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