The Complete Clinton Calendar

Four Years of Presidential misdoings, missteps and mistakes
Complete Clinton Scandals Chronology

Day by day, scandal by scandal, flip-flop by flip-flop ...
three years seems like a lifetime


The Clintons' association with the McDougals begins when
Bill Clinton
and Jim McDougal work together on the staff of then-U.S.
Senator J.
William Fulbright (D-Ark.) Before going to work for
Fulbright, McDougal
also had previously worked during the early 1960's for
Senator John L.
McClellan, on the Rackets Committee


Bill Clinton is recruited to serve on the special staff
being assembled
by John Doar and attached to the House Judiciary Committee
(not the
regular committee staff) to handle the Nixon impeachment
inquiry.  He
declines, and tells them to hire his girlfriend, Hillary
instead. Or at least that is the most logical deduction.

On the staff Hillary engages in some unethical behavior,
lying to the
permanent committee staff. Hillary tells everybody close to
her that she
expects Bill Clinton to be President one day and promises
Nussbaum that when that happens, he will be named White
House counsel.
He does not the offer seriously. Hillary is very close to
John Doar and
one weekend, while visiting Arkansas, gets called back to
come to
Washington, (possibly in order to make a false transcript of
one of the
tapes? It may be that she writes the words "I want you all
to stonewall
it. My thoughts. The tapes are never publicly aired so no
one notices
this, although they can be listened to without stopping)

Bill Clinton's kindergarten friend, Thomas F. "Mack"
McLarty, becomes
the chairman of the Arkansas Democratic Party.

Bill Clinton runs for Congress, but, although he uses
Watergate as an
issue, and raises more money than the four-term incumbent,
John Paul
Hammerschmidt, he narrowly loses. Also, his mentor, Senator
loses a primary to Arkansas Governor Dale Bumpers ruining
his hopes
of going to the Senate eventually.

With Bill stuck in Arkansas, Hillary is forced to move to


Bill Clinton and Hillary Rodham marry (October 11) because
it is awkward
for Bill Clinton to explain that they are living together
without being


Bill Clinton became Arkansas attorney general


 Hillary Rodham is hired as a lawyer by the Rose Law Firm.

Whitewater Created, Clintons Get  Stake on "Little Money"

+ Bill Clinton served as attorney general of Arkansas in


Clinton becomes Governor and appoints friend James
McDougal economic-development adviser. Later that year,
Bill and Hillary joined with McDougal and his wife Susan
to form a real estate partnership, Whitewater Development.
Clintons took out an unsecured $20,000 loan from
McDougal's S&L for their share of the down payment on the
land purchase of $203,000.

+ Through Whitewater Development Corp., 230 acres of Ozark
Mountain vacation property was purchased for $203,000 in
borrowed money with plans to subdivide and sell the
acreage in lots.  "During this period," reported the New
York Times (3-8-92), "the Clintons appear to have invested
little money, so stood to lose little if the venture
failed, but might have cashed in on their 50 percent
interest if it had done well."
+ The Washington Post reported on November 29, 1993, that
the $20,000 down payment that the Clintons apparently paid
in for Whitewater came from an unsecured loan at a Little
Rock bank, whose board of directors included Clinton's top
campaign finance official that year, Walter DeRoeck.

6-19-78: Bill Clinton and Jim McDougal sign $20,000 loan
>from  Union 
National Bank.

7-27-78: Letter from Whitewater Real Estate Agent Chris Wade
to the Clintons and McDougals providing them with a copy of
the closing statement on their land purchase.

8-2-78: The Clintons and McDougals sign $182,611 mortgage
loan from 
Citizens Bank of Flippin.

9-7-78: Letter from Whitewater Real Estate Agent Chris Wade
to the 
Clintons and McDougals enclosing a survey and another copy
of the closing 
statement on their land purchase.


   1979-80: Clinton Becomes Governor; McDougal Buys a Bank

 + Bill Clinton took office in January 1979 .  James
McDougal joined his administration as an economic
development aide.  He soon left and bought the Bank of
Kingston in northern Arkansas (New York Times, 11/2/93).
+ David Hale (who served as an Arkansas municipal judge from
March 1979 until September 1993) formed Capital-Management
Services, Inc., licensed with the Small Business
Administration as a Specialized Small Business Investment
Corporation to make taxpayer-guaranteed loans to socially
disadvantaged men and women to start their own business.

+ James McDougal bought Madison Guaranty Savings and Loan
Association.  Whitewater Development kept its accounts at
Madison (Minneapolis Star Tribune, 3/13/94).

  The $100,000 commodities trading profits are made.

 Clinton Becomes Governor'  McDougal Buys a Bank. Hillary
is made a partner in the Rose Law Firm (1979 actually)

Jim McDougal employed as an economic development
aid to Governor Clinton.

2-15-79: Meeting at Governor's Mansion attended by Governor
Clinton and Jim McDougal.

2-19-79: Jim McDougal issues memorandum to Susan McDougal
Gov. Clinton's daily schedule for the month of April 1979 .

3-10-79: Susan McDougal provides Gov. Clinton with details
about function at which he is to make an appearance.

3-29-79: Gov. Clinton and Jim McDougal attend ceremony at
Governor's Mansion.

4-2-79: Gov. Clinton and Jim McDougal attend luncheon.

4-11-79: Gov. Clinton and Jim McDougal attend luncheon.

4-18-79: Gov. Clinton and Jim McDougal attend press
conference, fly to Paragould, Ark., and attend meeting.

5-2-79: Gov. Clinton and Jim McDougal attend meeting.

5-3-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

5-23-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

5-24-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

5-25-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

5-29-79:  Gov. Clinton and Jim McDougal attend luncheon.

6-5-79: Meeting at Governor's Mansion attended by
Governor Clinton and Jim McDougal.

6-18-79: Jim McDougal signs stock certificate to Hillary
Rodham representing 150 shares of Whitewater stock.

6-19-79: Bill Clinton and Jim McDougal sign $20,000 loan
renewal from Union National Bank.

6-27-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

7-3-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

7-24-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

7-31-79: Two meetings at Governor's Mansion attended by
Gov. Clinton and Jim McDougal.

8-3-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

8-12-79: Jim McDougal accompanies Gov. Clinton on trip to
Fayetteville, Arkansas.

8-13-79:  Jim McDougal accompanies Gov. Clinton on "road

8-14-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

8-23-79: Meeting at Governor's Mansion attended by
Governor Clinton and Jim McDougal.

9-4-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

9-17-79: Bill Clinton and Jim McDougal sign $20,000 loan
renewal from Union National Bank.

9-30-79: The Clintons and McDougals sign warranty deed
associated with Whitewater property.

10-1-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal. That evening, Jim and Susan
McDougal accompany Gov. and Mrs. Clinton on flight to New
Orleans, La.

10-7-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

10-9-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

10-15-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

10-16-79:  Two meetings at Governor's Mansion attended by
Gov. Clinton 
and Jim McDougal.

10-23-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

10-29-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

11-9-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal. Gov. Clinton and Jim McDougal
sign $182,611 mortgage loan renewal from Citizens Bank of

11-20-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

12-7-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

12-14-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.

12-17-79: Bill Clinton and Jim McDougal sign $20,000 loan
renewal from Union National Bank.

12-18-79: Meeting at Governor's Mansion attended by Gov.
Clinton and Jim McDougal.


8-5-80: Bill Clinton and Jim McDougal sign $182,611
mortgage loan renewal from Citizens Bank of Flippin.

12-16-80: Hillary Clinton obtains a $30,000 loan from Jim
McDougal's Madison Bank and Trust.

The purpose of this loan was to place a prefab house on
Lot 13, which was positioned near the entrance to the
development in an attempt to spur lot sales. Consequently,
the Clintons must have known as early as December 1980
that Whitewater was experiencing slow lot sales.

12-28-80: Jim McDougal signs Warranty Deed transferring
ownership of Whitewater Lot 13 to Hillary Clinton.


8-5-81: The Clintons and McDougals sign $129,241 mortgage
loan renewal from Citizens Bank of Flippin.

10-12-81: Letter from Hillary Rodham to Jim McDougal
stating, "If Reaganomics works at all, Whitewater could
become the western hemisphere's Mecca."

This letter shows that Mrs. Clinton is interested in
Whitewater being a financial success and apparently is
monitoring its progress.

11-10-81: Letter from Ozarks Realty Co. to the Clintons
providing a closing statement on sale of Lot 13 to Hilman

The Clintons possibly were aware of the adverse economics
related to Whitewater as of this date. Not only was an
immediate loss realized with respect to the sale of this
lot, but additional losses over time would result because
of the high interest rate on bank debt (20 percent)
compared to the statutory interest rate cap on the
underlying installment contract (10 percent).

12-9-81: The Clintons enter into escrow contract
associated with sale of Lot 13 to Hilman Logan.

12-14-81: The Clintons sign warranty deed to be placed in
escrow transferring title of Lot 13 to Hilman Logan.

12-22-81: Memorandum to Bill Clinton noting that Jim and
Susan McDougal are out of town and that he will have to
complete his financial statement on his own.


Whitewater books show nearly $300,000 in revenues from
plot sales.  Hillary borrows another $30,000 unsecured
loan from McDougals S&L to pay for a model home on the

3-1-82: Letter from Jim McDougal to Bill Clinton stating,
"I have paid from Whitewater Development Corporation the
note you owed Citizens Bank of Jonesboro. You are correct
in your believe that the sum of money borrowed was part of
your investment in Whitewater."

A handwritten note on the bottom of the letter reads,
"Response to Hillary," indicating that Mrs. Clinton
apparently inquired about the matter and requested the
above statement from Jim McDougal, possibly for tax

3-25-82: Memorandum from Citizens Bank of Jonesboro to
Bill Clinton about additional interest due on his loan
because it was repaid after the due date, and that she had
discussed the matter with someone at his headquarters'
office, but had not heard back from him.

3-31-82: Memorandum from Citizens Bank to file noting that
the writer had spoken with Susan McDougal

8-00-82: Photographs of Candidate for governor Clinton and
candidate for Congress McDougal appear on the front page
of Young Democrats of Arkansas publication In Action.

8-3-82: Memorandum to Bill Clinton stressing the
importance of his attendance at an upcoming Democratic
rally with Jim McDougal.

8-5-82: Letter  from Theresa Pockrus  of Madison Bank and
Trust  to Hillary Clinton reminding  her  that her loan is
past due.

8-9-82: Memorandum to Bill Clinton advising him that the
public perceives him and Jim McDougal as a team.

8-11-82: Letter from Hillary Rodham to Theresa Pockrus of
Madison Bank and Trust stating, "I ask that you speak with
either Mr. or Mrs. McDougal who have made all the
arrangements for this loan."

8-27-82: Candidate for governor Clinton and candidate for
Congress McDougal speak at Democratic State Committee

9-11-82: Candidate for governor Clinton and Candidate for
congress McDougal speak at Logan County Democratic

9-16-82: Candidate for governor Clinton and candidate for
Congress McDougal appear at 1982 Democratic Convention.

9-24-82: Democratic press release that Mrs. Bill Clinton
and Jim McDougal will be featured speakers at an upcoming

9-30-82: Candidate for governor Clinton and candidate for
Congress McDougal appear at reception.

10-30-82: Whitewater Development Company, Inc. board
meeting to authorize renewal of Citizens Bank of Flippin
mortgage loan and establish an escrow account.

11-1-82: The Clintons and McDougals sign $20,000 interest
funding loan from Citizens Bank of Flippin.

The purpose of this loan was to pay accrued interest due
on the land mortgage because Whitewater was not generating
sufficient income to service bank debt. Consequently, the
Clintons must have known at this point that the land
venture could not pay its bills.

11-1-82: The Clintons and McDougals sign $129,241 mortgage
loan renewal from Citizens Bank of Flippin.

The Clintons should have questioned how Whitewater would
be able to retire the debt in just six months, especially
since they just signed an additional $20,000 loan to pay
delinquent interest.


McDougal rapidly expanded Madison Guaranty S&L, prompting
the Arkansas banking commissioner, Marlin Jackson to stop
making imprudent loans. The banking regulator told Clinton
about McDougal's shoddy practices, but Clinton took no

McDougal Bank Investigated; Madison Assets Grow
+ The Kingston Bank, which James McDougal purchased in
1979, came under investigation.  Governor Clinton's
banking commissioner informed the Governor that McDougal
was engaging in questionable banking practices (New York
Times, 11-2-93).  

>From  assets of $6 million, Madison had now grown to 
over $100 million (Ibid.).

3-28-83: Letter from Mrs. Clinton (on Governor's Mansion
letterhead) to "Dear Gaines" which reads, in part, "Here
are my records. I've tried to list all categories of
income and deductions on the enclosed typed pages. .  . .I
do not as yet have the tax info from McDougal's accountant
about White River. I will try to get it but may want you
also to contact him. After you've had a bank to review
these, I'd be glad to meet with you."

This letter shows that Mrs. Clinton was actively involved
in the handling of Whitewater's financial records.

9-3-83: Letter from Mrs. Clinton (on Governor's Mansion
letterhead) to Jim McDougal stating, "I just received the
enclosed. What needs to be done about this, and have you
closed out our interest? Could you have someone call me?"

This letter shows that Mrs. Clinton was seeking answers,
apparently about financial matters associated with
Whitewater. A handwritten note on the bottom of the letter
reads, "Done 10-18-83 ."

9-30-83: Governor Clinton signs a $20,80 0 loan from
Security Bank of Paragould, the proceeds of which are
remitted directly to Madison Bank and Trust and applied to
Hillary Clinton's loan.

10-10-83: Letter from Rose Law Firm Managing Partner C.J.
Giroir, Jr. to Jim McDougal referencing Mr. McDougal's
discussion with Hillary Rodham Clinton about legal
services rendered.

10-14-83: The Clintons and McDougals sign $128,075 mortgage
loan renewal from Citizens Bank of Flippin.

The last renewal, on November 1, 1982, required the
shareholders to obtain a $20,000 loan to pay delinquent
interest. Approximately one year later, just one lot had
been sold and only a small $1,166 principal reduction had
been made. The Clintons must have observed that the
economics of the project continued to be problematic, and
should have questioned how the loan, for which they were
personally obligated, would be repaid.


Hundreds of thousands of dollars in mysterious checks
began moving through Whitewater's account at Madison
Guaranty, according to a later probe by the RTC. The
investigators suspect Whitewater was operating a
check-kiting scheme to drain money from the S&L.

Whitewater Posts Losses; Madison Hires Hillary
+ According to check ledgers, Whitewater posted losses
beginning in 1984 and had frequent and large negative
balances in its account at Madison (New York Times,
11-2-93).  The Resolution Trust Corporation later alleged
that beginning in 1984 , Whitewater was used by the
McDougals in a check-kiting scheme involving funds from
Madison (Washington Post, 11-11-93).
+ The Los Angeles Times (11-7-93) reported McDougal said
Clinton "stopped by after a morning jog" to tell him that
family finances were tight and ask if he could please throw
some of Madison Guaranty Savings' legal business to his
attorney wife, Hillary Rodham Clinton.  When asked how much
they needed, Clinton said "$2,000 a month," according to
+ Hillary Clinton, then with the Rose Law Firm, began
accepting a $2,000-a-month retainer from Madison Guaranty.
Mr.  McDougal said he hired Hillary at the urging of her
husband, Governor Clinton (Los Angeles Times, 11-12-93).
She remained on retainer for 15 months.

1-19-84 Letter from Jim McDougal to the Canadian
Department of Tourism listing Gov. Clinton as a business
and character reference.
9-6-84: Memorandum to Gov. Clinton about phone call from
Susan McDougal requesting that Gov. Clinton attend a party
for her husband. Gov.  Clinton responds that he would like
to attend and give Jim McDougal an "FDR bust."

9-30-84: The Clintons sign $18,80 0 loan renewal from
Security Bank of Paragould.

Whitewater paid $4,811.19 on the loan for accrued interest
and a $2,000 principal reduction. The Clintons improperly
deducted the $2,81 1.19 interest payment paid by Whitewater
on their personal tax returns.

10-1-84: Letter from Hillary Clinton to Jim McDougal
regarding past due notice received from Security Bank of
Paragould and requesting a tax receipt for her records.

10-4-84: Letter from Jim McDougal to Hillary Clinton
regarding a Whitewater check to pay interest and make a
principal reduction on Security Bank of Paragould loan and
advising that he will forward a tax receipt to her when

10-22-84: Letter from Hillary Clinton to Jim McDougal about
Security Bank of Paragould loan renewal, stating, "Will
you ask someone to take of this for us?"

10-29-84: Letter from Gov. Clinton to Jim McDougal
apparently responding to a letter from Jim McDougal about
state laws that apply to the operation of vending

11-21-84: Letter from Jim McDougal to Hillary Clinton
stating, "I urgently need your personal financial
statement to renew the Whitewater note at Flippin."

11-21-84: Letter from Jim McDougal to Ron Proctor of
Citizens Bank of Flippin enclosing a Whitewater check for
$6,000, along with personal and corporate financial
statements, and noting that Governor Clinton will mail his
statement directly.

11-26-84: The Clintons and McDougals sign $100,121 mortgage
loan renewal from Citizens Bank of Flippin.

The Clintons should have questioned how a $27,954 principal
reduction was made in light of past chronic cash shortfalls
and minimal lot sales activity since the last renewal.
Related correspondence indicates that the loan renewal was
not actually signed on this date.

12-3-84: Letter from Ron Proctor of Citizens Bank of
Flippin to Jim McDougal enclosing a renewal note that
needs to be signed by the Clintons and McDougals, as well
as by the corporation. The letter also requests that Jim
McDougal "Please tell Mr. Clinton that the renewal will
not go into effect until we receive his current personal
financial statement. This means that the loan will remain
past due until we receive the statement."

12-12-84: Letter from Jim McDougal to Betsy Wright of the
Governor's Office stating, "Governor Clinton has made a
commitment concerning this bill which I need to discuss
with you at your convenience."

12-12-84: Letter from Jim McDougal to Ron Proctor of
Citizens Bank referencing that he has forwarded the note
renewal to the Clintons for them to sign and return
directly to him.

12-12-84: Memorandum from Jim McDougal to Hillary Rodham
Clinton requesting that she sign her name and Bill's name
to the enclosed financial statement and note renewal. The
memorandum further states that he will be glad to visit
with her at any time, and to please let him know when it
will be convenient for her.

This letter indicates that Mrs. Clinton apparently is again
seeking information about Whitewater's finances.



Clinton appoints friend, Beverly Bassett Schaffer, as head
of the State Securities Department (which oversees the
banking commission and supervises S&Ls).  Schaffer had
represented Madison Guaranty at her law firm. (In that
role, federal regulators now say, she knew how badly
Madison violated regulations.)

1-2-85: Madison Financial issues $400 check to Inaugural
Committee per Susan McDougal.

2-7-85: Memorandum from Jim McDougal to Gov. Clinton
recommending John Latham and Dr. Jerry Kendall for the
State Savings and Loan Board, wherein he notes that, "I am
about the only one around who has any interest in this

3-26-85: Memorandum from staff to Gov. Clinton about
attending Jim McDougal's fund raiser on April 4 around
4:00 or 4:30. Governor Clinton responds with a handwritten
note on the bottom of the memorandum stating, "really
needs at least and hour."

1985   - APRIL

Bill Clinton asked McDougal to host a fund-raiser to pay off
a $50,000 personal loan that Clinton had borrowed to help
finance his 1984 campaign. The event raised $35,000. ( An
article in the USA today states that most of this money came
in the form of cashier checks from Madison Guaranty under
the names of prominent depositors. Those named on the checks
have been contacted and have stated that they never
contributed money to Clinton. This has investigators
examining the possibility the money from Madison was
illegally diverted to Clinton campaign. If true - that
Madison gave money in the name of a depositor without that
person's knowledge - that would be improper diversion of
depositor funds, a felony.)

+ Days before McDougal held a fund-raiser on April 4, 1985,
that raised at least $35,000 to help Clinton pay off his
debt to his 1984 reelection campaign, McDougal learned that
Madison was being scrutinized by federal regulators (New
York Times, 11-2-93).

+ "At least one person listed as having donated money
at the 1985 event has denied he contributed to Clinton"
(Arkansas Democrat Gazette, 1-15-94).

+  It is widely speculated that McDougal illegally diverted
Madison funds to Clinton's campaign (Time, 1-17-94).
+  It was during this time that Whitewater allegedly
was used by the McDougals in a check kiting scheme to drain
funds from Madison.  Details of the alleged scheme were
published by the Washington Post (11-11-93):

+ "Whitewater issued 10 checks for more than $70,000.
were written to the Bank of Cherry Valley, where Clinton had
a campaign account. . .  other alleged shell corporations,
or from Madison Financial Corp., the S&L's wholly owned
+ "One $30,000 check was issued on Whitewater's account to
McDougal with the notation `loan repayment,' though sources
said the RTC found no records of any loan from McDougal.
+ "That check resulted in an overdraft that was covered by a
deposit of $30,000 from Madison Financial Corp. (MFC).  In
April 1985, according to S&L documents, MFC deposited
$30,000 directly into Whitewater's account as a `prepayment'
on a 1985 bonus to McDougal, MFC's president."

4-3-85: Stephens Security Bank (Stephens, Arkansas)
loans $135,000 to James and Susan McDougal for their
Flowerwood Farms real estate development in Pulaski County,
100 miles north of Stephens.  Stephens Security was known to
have ties to the Arkansas elite, and many corporate matters
were handled by C. Joseph Giroir Jr - chairman of the Rose
Law firm.  Hillary Clinton used her name to secure the
$135,000 loan.  Don Denton, a former VP at Madison S&L, has
given an affidavit to Kenneth Starr stating he was in the
room when Hillary signed for the loan.

The April 3 note was secured by 11 lots in Flowerwood Farms,
and the proceeds went into the Flowerwood Farms account at

One check for $24,599.90 went to Whitewater Development to
cover an overdraft. As the Clintons were 50-50 partners,
they directly benefited from this payment. Two more checks
for $140,000 paid off personal loans of Jim McDougal. By
April 19, Flowerwood Farms account was overdrawn by $50,000.

Another check from the Flowerwood Farms money for $3,000 was
given to former Senator William Fullbright.

4-4-85: Gov. Clinton's daily schedule reflecting his
attendance at Jim McDougal's fund raiser from 4:15 to
5:30.  The event was held at Madison Guaranty and its
purpose was to help the governor retire his personal 1984
campaign debt. At least $32,000 is raised from Madison
Guaranty employees, borrowers and other insiders.

4-4-85: Madison Guaranty cashier's check #Q2496 for
$3,000 issued to Bill Clinton Campaign Fund.

4-4-85: Madison Guaranty cashier's check #Q2497 for
$3,000 issued to Bill Clinton.

4-4-85: Madison Guaranty cashier's check #Q2498 for
$3,000 issued to Bill Clinton.

4-4-85: Jim and Susan McDougal contribute $3,000 to Gov.
Clinton's gubernatorial campaign fund.

4-4-85: Senator William Fullbright gives a $3,000
contribution - money he just received from McDougal - to
Bill Clinton at a fund raiser at Madison's Little Rock HQ.
This event was used to retire a $30,000 debt Clinton had
>from  a loan taken out during his '84 campaign.  So Hillary
had signed a loan where a portion of the money had been
diverted to others and then given to Bill to retire his
loan.  As the Flowerwood account was overdrawn by 4-19, this
is an example of diverting S&L money to Bill while
contributing to the default of Madison.

4-9-85: Memorandum to Gov. Clinton relaying message from
Jim McDougal about the importance of the governor
attending an April 15 event with him.

4-24-85: Letter from Madison Guaranty employee Sue
Strayhorn to the Governor's Office providing addresses for
contributors at the April 4, 1985 fund raiser.

4-30-85: Letter from Jim McDougal to Gov. Clinton
recommending Skip Emmett for the County Agent job in
Newton County.

4-30-85: Hillary Clinton, who represents Madison, proposes
an unusual stock sale to shore up the troubled S&L. This was
described as a "precedent-setting" stock reissue plan to
state regulators to save Madison (Washington Post, 1-24-94).
Madison's attorneys included a Frost & Co. audit of Madison
to demonstrate its solvency as part of their petition to
state regulators (Los Angeles Times, 1-16-94).
Schaffer approves the deal over the objections of the
banking commission ( and Federal regulators). (Madison was
represented before Schaffer by Hillary Clinton, on retainer
by McDougal at $2,000 a month. McDougal says he hired
Hillary because Bill Clinton begged him to. Schaffer, in a
"Dear Hillary" letter, approved the Stock sale. Federal
regulators complained to Schaffer about McDougals business
practices, but she did nothing.)

5-14-85: In a "Dear Hillary" letter, Arkansas State
Securities Commissioner Beverly Bassett Schaffer approved
the stock reissue plan advanced by Madison's attorneys,
including Hillary Rodham Clinton, but the plan was never
carried out (New York Times, 11-2-93; Washington Post,
1-24-94).  Clinton appointed Schaffer to this post of
regulating the state's S&Ls, and her brother helped manage
Clinton's 1984 campaign.

5-23-85: Letter from Jim McDougal to Hillary Clinton
indicating that he would like to meet with Rose Law Firm
Managing Partner Joe Giroir, "to discuss a couple of
banking matters with him which might be mutually

7-9-85: McDougals use the same 11 mortgaged Flowerwood Farms
lots to secure a second loan from Madison for $99,113.  The
McDougals have just committed fraud on a federally insured
institution as there is no evidence that the Madison board
or Hillary Clinton were informed of the double pledging of
the lots.

7-11-85: Internal Madison Guaranty memorandum from Jim
McDougal to John Latham stating, "I need to know
everything you have pending before the Securities
Commission as I intend to get with Hillary Clinton within
the next few days."

8-4-85: Memorandum to Gov. Clinton about a problem
concerning the Savings and Loan Board to which Gov.
Clinton responds by advising staff to call Jim McDougal.

8-8-85: Internal Madison Guaranty memorandum from Pat
Jones to John Latham about preference to use Hillary
Clinton on Madison Guaranty's application to move its home

8-9-85: Internal Madison Guaranty memorandum from Pat
Jones to Sarah Hawkins referencing that John Latham will
talk to Hillary Clinton about Madison Guaranty's
application to move its home office.

9-4-85: Internal Arkansas Department of Finance and
Administration document noting that Mrs. Lorene McDougal
(Jim McDougal's mother) is a personal friend of Gov. Bill

10-11-85: Bill Clinton signs $13,80 0 loan renewal from
Security Bank of Paragould.

11-1-85: Letter from Marlin D. Jackson, Arkansas Bank
Commissioner, to Charles D. Campbell, Security Bank of
Paragould vice president, stating, "It is my understanding
that Jim McDougal, a close friend as well as business
associate of Governor Clinton, is to forward to you a
check for $2,322.42 representing the interest due on the

11-8-85: Letter from Jim McDougal to Charles D. Campbell,
Security Bank of Paragould Vice President, with a cc to
Bill, enclosing a $7,322.42 Whitewater check to be applied
to Bill Clinton's loan.

Whitewater paid $7,322.42 on the loan for accrued interest
and a $5,000
principal reduction. The Clintons improperly deducted the
interest payment paid by Whitewater on their personal tax

11-20-85: Internal Madison Guaranty memorandum from Jim
McDougal to Seth Ward stating that, "I have spoken with
the Governor on this matter, and expect it will be

11-21-85: Telephone call from Governor's Office to Jim

Late 1985 - the FSLIC, noting irregularities, tells McDougal
that they will audit Madison in early 1986.

12-9-85: Richard Smith from Stephens Securities calls
McDougal.  S&L examiners are after Stephens to reduce its
questionable "out of region" loans, and Smith wants the
Flowerwood Farms note paid off.

12-10-85: Gov. Clinton names Jim McDougal to the Martin
Luther King Holiday Commission.

12-17-85: Internal Madison Guaranty memorandum from Sue
Strayhorn to Davis Fitzhugh referencing that Margaret
Carter, a prospective tenant, was referred to Jim McDougal
by Bill Clinton.

12-19-85: Telephone call from Governor's Office to Jim

12-19-85: Governor Clinton's daily schedule reflecting a
dinner engagement at the Governor's Mansion with Jim
McDougal and J.W. Fulbright.

December '85 -January '86 - needing capital to correct the
books for the double pledging (as well as other deals),
McDougal gets in bed with David Hale, Jim Guy Tucker, and
Bill Clinton.  They plan a scheme where money from Hale's
Capital Management Services Inc. will flow to McDougal, Jim
Guy Tucker, and Stephen Smith (once Clinton's chief of
staff).  By January the money begins flowing to these
people.  Hale is later placed under indictment for
fraudulently getting federal backing for Capital Management
Services Inc..


Whitewater Gets Funds From SBA-Backed Loan to Start New
McDougal Removed as Madison Head
+ David Hale, owner of Capital-Management Seto Whitewater
partner Susan McDougal, to help "clean up" some personal
financial and legal problems.  Capital-Management Services
issued a check for $300,000 made out to "Susan H. McDougal
d/b/a Master Marketing" on April 3, 1986 (Washington Times,
+ Whitewater may have used $110,000 of the $300,000 loan to
Susan McDougal by Capital-Management Services to purchase a
new development southwest of Little Rock, known as Lorance
Heights, which also failed.  Despite the fact that Capital-
Management Services, Inc., was supposed to lend funds only
to disadvantaged businesses, the McDougals had recently
filed a financial statement showing a net worth of $2.2
million (Washington Post, 11-6-93; Washington Times,
+ Madison owner James McDougal was removed from Madison's
affairs by Federal and state regulators for financial
mismanagement (Chicago Tribune, 11-10-93).

1-3-86: Richard Smith from Stephens Securities calls
McDougal.  He asks again that Flowerwood Farms note be moved
out of Stephens Securities.

1-13-86 Letter from Gov. Clinton to Jim McDougal providing
him with a print entitled "Summer at Campobello" for his
development company's use.

1-15-86 Telephone call from Governor's Office to Jim

1-15-86: - McDougal meets with Clinton and pays
$40,000 to Stephens Securities for the Flowerwood Farms
note.  He still owes them almost $100,000.

1-18-86 Gov. Clinton's daily schedule reflecting
appointment with Jim McDougal at the Governor's Mansion.

1-28-86 Telephone call from Governor's Office to Jim

1-30-86 Rose Law Firm fee bill referencing services
performed by Hillary Rodham Clinton for Madison Guaranty.

1-30-86 Memorandum from staff to Gov. Clinton about phone
call with Jim McDougal regarding some complaints Jim
McDougal had about the Health Department. The memorandum
reads, in part, "He told me to look for the memo he gave you
that had the complaints outlined and that I could find that
memo in your coat pocket of the jacket you had on when he
saw you.. . . .  He insisted that I find that coat and I
would have the memo, but if, by chance, I couldn't find it
and was unable to talk to you about the problems, to call
him back. I called him back on Tuesday of this week. He was
out, but his secretary said that he had spoken to you that
very day long . . . so she felt like the issue was resolved.
I did speak to Jerry Hill at the Health Dept. and they have
copious letters from McDougal and would be glad to respond
to any and all of the complaints outlined in the memo that
is in the coat pocket."


David Hale, a local judge ( appointed by Clinton ) and a
federally sponsored tending-company operator, was asked by
Clinton and McDougal to arrange a loan of $300,000 to clean
up dubious loans at Madison S&L.  Hale approves the loan for
that amount to McDougal's wife, claiming one of her
companies qualified as a disadvantaged small business (
minority owned firm.) ( Also, Hale is later indicted on
charges of defrauding the Small Business Administration.)

2-3-86 Telephone call from Governor Clinton to Jim
McDougal telling McDougal to be in his office in an hour.

This call was placed at 9:23 A.M. David Hale and Arkansas
State Trooper L.D. Brown have stated that during the first
week of February 1986, Hale encountered Gov. Clinton
returning from his morning jog on the steps of the State
Capitol, and that Gov. Clinton pressured Hale to make a loan
during that encounter, asking if he was going to "help him
and Jim out."

2-3-86 Letter from Security Bank to Bill Clinton
enclosing an interest statement and noting that the
original notice had been sent to Jim McDougal.

2-5-86 Memorandum from staff to Gov. Clinton attaching
information provided by Tom Butler (Health Department
deputy director) regarding "McDougal issues."

2-20-86  McDougal, concerned about the fraud of
his double pledge of the Flowerwood Farms lots, retires his
note with Madison.  But Bill Clinton is still concerned that
Hillary's name is associated with the note at Stephens.

2-25-86 Memorandum from staff to Governor Clinton about
the Health Department and Jim McDougal advising him that
Tom Butler is still trying to get a handle on the McDougal
memorandum and that the Health Department had alerted its
people to respond to calls with caution and diplomacy. The
memorandum further notes that Jim McDougal has not
fulfilled written commitments he made to the Health
Department in April 1984 .

2-28-86: David Hale meets with Bill Clinton at Castle
Grande.  Bill applies pressure for Hale to make an illegal
loan to McDougal to bail out the Flowerwood Farms note at
Stephens.  They decide to loan money to Susan McDougal's
advertising company and then divert it to other places,
including Stephens Security.

3-4-86 Bill Clinton listed as a tentative "insider" in
FHLBB examiner's work papers regarding Madison Guaranty.
This is the effective date of the examination.

3-4-86 Gov. Clinton's daily schedule reflecting meeting
at the Governor's Mansion with Jim McDougal and Tom Butler
about sewage disposal problems at Maple Creek Farms.

3-4-86 Memorandum from staff to Gov. Clinton about
meeting that day with Jim McDougal stating, "I have met
with Health Dept. people in regard to the memo you
received from McDougal.. . . Bill Teer did relate that
back in 4/84 McDougal was disconcerted at being requested
to sign the Memorandum of Understanding (attached). He did
refer to Teer and Bruce Kirsch as incompetent bureaucrats,
SOBs, and told them the memorandum was worthless and that
the Governor was his good friend, etc."

3-5-86 Memorandum from staff to Gov. Clinton about March 4
meeting with Jim McDougal stating that attendees "kept
silent yesterday out of respect for you, but their silence
was not tacit approval of Jim's accusations.  Frankly, they
were taken aback at some of what he said and felt a great
deal of frustration at not responding. . . . I believe they
took their cue from you when you told them that Jim was your
friend of 20 years who had never asked for a favor."

3-21-86 Handwritten note to Tom Butler apparently from
his staff relating a conversation in which Jim McDougal
said, "Don't want to act political but if we have had
another Gov he'd fire Lex Dobbins - this kind of man can
defeat Bill Clinton." The note further states, "Remember
Jim said that Lex Dobbins wasn't going to defeat BC - he
hadn't spent $60,000 on him since he was 18 to sit back &
watch a crazy, psychotic person like Lex Dobbins defeat

3-25-86 Health Department Deputy Director Tom Butler writes
Jim McDougal apologizing for the delay in getting back with
him and advising him that the transfer of all documents and
responsibilities regarding Maple Creek Farms, Brittany Point
and Eden Park have been completed. The letter states, "I can
assure you that any future decisions and subsequent actions
concerning this matter will first be discussed and approved
by upper management of the Health Department."

4-1-86 David Hale gets a call from Richard Smith saying
they will try to close out the Flowerwood Farms note on

4-3-86 Capital-Management Services, Inc. funds a
$300,000 loan to "Susan McDougal dba Master Marketing,"
partial proceeds of which were diverted for the benefit of
Whitewater Development Company, Inc.

4-3-86 - The Flowerwood Farms note at Stephens comes due.
David Hale gives $300,000 to Susan McDougal's Master
Marketer advertising company. Stephens Security marks the
note as paid even though they have no money as of yet.

4-6-86 - McDougal gives Stephens Security a check for
$111,524.21.  But the cashiers check does not clear until
September.  Fraudulent entries as to the date the check was
written are suspected.

Two additional checks from the 300K totaling $36,000 went to
International Paper Realty Co for another land deal.  At the
same time, Gov. Clinton gives International Paper Realty Co
a large tax break.

Another $42,000 went to two individuals.  The remaining
$110,000 is missing as are the microfilm records from
Madison which would have shown where the money went.

4-16-86 Telephone call from Gov. Clinton to Jim McDougal.

4-29-86 Memorandum from Jerry Hill of the Arkansas Health
Department to the Governor's Office providing a status
report since the meeting with Jim McDougal which reads, in
part, "Keep in mind that Mr. McDougal's agreements
concerning public sewer have not been met and that the
Covenants and Restrictions of Maple Creek Farms possibly
contradict Act 402 of 1977."

6-23-86 Handwritten note from "Carolyn" to Mrs. Clinton
confirming that she had forwarded a bill to Jim

6-26-86 Memorandum from staff to Gov. Clinton about Maple
Creek Farms which reads, in part, "Tom Butler called and
they are in the process of getting a complete report over
to us on all that has been going on re Maple Creek here of
late. . . . Tom feels that they have made every effort to
work with the Maple Creek people. No matter who is
assigned to work at these lots out there the conclusion is
going to be the same - all of the soil is not suitable for
septic tanks. Tom did say that they will take no action
until you see the full report and he heard back from us."

1986 - OCTOBER

SBA loan diverted to Whitewater to buy 81 0 acres from
International Paper.

[July, 1986 - At this point, we know that the Flowerwood
Farms note has not been paid because the check won't be
cashed for 2 more months.  Thus, Hillary is still on the
hook for the Flowerwood note (as well as the possibility
that she was a willing participant in the fraudulent double
pledge of the lots).  The paper trail still points to
Hillary.  Clinton runs into Hale in Little Rock's University
Plaza Mall and says "Have you heard what that fucking whore
Susan has done?"  Hale claimed he did not, and Clinton
rushed off without explaining.  Bill is agitated about the
paper trail on Flowerwood as well as the possible sweetheart
deal given International Paper Realty Co and the fact that
both he and Hillary could be in big trouble.]

10-22-86 Letter from Carolyn Huber to Mrs. Clinton about
tax issues relating to the property Mrs. Clinton owned at
Whitewater Estates. The letter relays phone conversations
Ms. Huber had with Susan McDougal, Jim McDougal's office,
Madison Bank, and the Marion County Tax Collector.

11-14-86 Letter from Jim McDougal to the Clintons about
the status of Whitewater stating, "The company to date has
experienced losses totaling approximately $90,000. . . .
Susan and I have in large measure contributed to the
company the funds necessary to cover these losses."

12-16-86 Letter from Jim McDougal to the Clintons about
buyers of Whitewater lots that have defaulted, "thereby
creating a shortfall of about $1,000.00 a month for our
monthly payment to Citizens Bank of Flippin."

1986   (late in the year)

Banking regulators (federal) remove McDougal as chief of
Madison S&L, issuing a scathing report about faulty record
keeping and the diversion of funds to friends and family.


Whitewater Records to Hillary?
+ James McDougal claimed that in late 1987, he sent all
Whitewater records and files to Hillary Rodham Clinton at
her request (Washington Times, 11-4-93).  The Clintons said
many of them have disappeared (New York Times, 3-8-92).

4-14-87 Memorandum from staff to Gov. Clinton about a
visit from R.D.  Randolph which reads, "Mr. Randolph
dropped by to see you this morning to talk to you about
the Water Bill you vetoed. He said that he talked to you
on Sunday morning. He wants to know if the veto is going
to stand. He would like you to call Jim Guy Tucker about
it. He said that he has a difficult time getting an answer
>from  you (He mentioned a meeting between you, Tucker and
Jim McDougal a couple of years ago which involved $33,000.
This was pretty cryptic). He seemed angry. Someone, I
think he prefers you, needs to call Tucker."

Approximately two years from this date, on 4-4-85 , Jim
McDougal hosted a fund raiser for Governor Clinton at
Madison Guaranty which raised approximately $33,000.
11-28-88: Hillary Clinton sent a letter to James McDougal
requesting that he sign an enclosed power-of-attorney
request for Whitewater Development, including giving her the
power to endorse, sign and execute "checks, notes, deeds,
agreements, certificates, receipts or any other instruments
in writing of all matters related to Whitewater Development
Corp."  The Clintons' spokesman in 1992 claimed they were
only "passive shareholders" in Whitewater (Washington Times,
12-7-88: Capital-Management Services, Inc., filed a
complaint with the Circuit Court of Pulaski County,
Arkansas, alleging default of its $300,000 loan to Susan
H. McDougal.  The Court judgment against Susan McDougal
occurred on February 6, 1989.


Federal regulators liquidated Madison S&L at an estimated
cost of $47- $60 million to taxpayers.

Madison's Failure Costs Taxpayers $47 Million; Rose Firm

+   The Washington Post on November 3, 1993, reported:
"The thrift, Madison Guaranty Savings and Loan, failed in
1989, costing taxpayers an estimated $47 million.  In an
effort to recoup some of that money, the Federal Deposit
Insurance Corp. hired the influential Rose law firm of
Little Rock to sue the S&L's accountants, paying it
$400,000 in fees and expenses.
"Through a Justice Department spokesman, (Associate
Attorney General Webster) Hubbell said he told the FDIC
that lawyers at his firm, including senior partner Hillary
Rodham Clinton, had represented Madison in the mid-1980s.
"FDIC officials said their attorneys ice, wrote to the
FDIC earlier in 1989 soliciting work for his firm.
"`The firm does not represent any savings and loan
association in state or federal regulatory matters,'
Foster wrote, using the present tense.  Conflict-
of-interest rules generally bar lawyers from representing
the government in S&L cases if they have done significant
work for the thrift."
+ While the Rose Law Firm was seeking the FDIC's business,
FDIC attorney April Breslaw, "known for her toughness on
conflict of interest, intervened on behalf" of Rose partner
Webb Hubbell as he sought to represent the FDIC in a $10
million suit against Frost & Co., Madison S&L's auditors.
The suit challenged the accuracy of the audit that Rose had
relied upon in previously representing Madison in 1985 .
Breslaw "brushed aside repeated internal challenges to
Hubbell's loyalty to [the] FDIC"; she "vouched in writing
for the Rose firm's performance" in another FDIC case; and
she "inexplicably approved a $1 million settlement with
Frost, although it had $3 million in liability" (Washington
Times, 2-15-94).


Whitewater filed no income tax return in 1990, 1991, and

Clinton's gubernatorial campaign workers gave cash to
black ministers to get them to encourage their
congregations to vote for Clinton. (US News & World
McDougal Acquitted

+ James McDougal was acquitted of charges that he
illegally profited from real estate deals involving the
development subsidiary of Madison Guaranty, Madison
Financial Corporation.


Nearly all of Whitewater's land had been sold. Later
(after 1992) tax returns files by Clinton attorney Vincent
Foster show strong assets of $160,000.

Rose Settles Madison Suit for $1 Million, Keeps 40 Percent
+ The government sought $60 million in its suit against
Madison Guaranty's accountants, Frost & Co. The Rose firm
settled the case on the FDIC's behalf with little
publicity in 1991 for $1 million (Washington Post,
11-3-93).  "`I felt they [the Rose firm] had switched
sides they turned around and worked the other side of the
street,' said one of the accountants, who asked not to be
named because he continues to have dealings with the Rose
law firm" (Washington Post, 11-3-93).  The Rose Firm
billed the FDIC $400,87 9 , "40 percent of the money
recovered in the settlement" (Washington Times, 3-5-94).
In a letter to the FDIC inspector general, U. S. Rep. Jim
Leach said "Mr. Hubbell settled the suit for a fraction of
the firm's insurance coverage, and then had the gall to
demand $400,000 in fees" (Ibid.).

1986 - 1991 - The Madison default case is swept under the


	Whitewater Becomes Campaign Issue; 	
	Whitewater Documents Allegedly Destroyed; 
	McDougal Complains; 
	Clintons Sell, Named in Criminal Referral; 
	Tax Returns Not Filed
+ After the New York Times originally broke the Whitewater
story on March 8, Clinton, on March 12, asked Denver
lawyer and personal friend James Lyons to prepare a "full
financial review" of the land deal.
Lyons's review, based on a report prepared by Patten,
McCarthy and Associates, a Denver-based forensic
accounting firm that specializes in "financial
reconstruction's," was completed and made public on March
23, 1992, ed, loaned or otherwise advanced" to the
development company $68,900 since the venture began in
1978.  It further claimed that Whitewater had an
outstanding mortgage of $10,400 plus accrued interest for
which the Clintons are joint guarantors (Associated Press,
However, "there is evidence aplenty that the Lyons report
omitted or glossed over some pertinent facts," the Wall
Street Journal reported on January 4, 1994.  Three year's
worth of unfilled tax returns were never mentioned.  It
also failed to mention an airplane-for-land swap involving
Chris Wade, the real estate agent for the development, and
James McDougal.  Wade sold the plane to Whitewater, but
McDougal took possession and sold it to Seth Ward a
Madison subsidiary employee and Webster Hubbell's
Additionally, the Lyons report failed to report
Whitewater's largest transaction an October 1986 ,
$550,000 purchase of land owned by International Paper
Company's realty unit (IPC eventually foreclosed on the
property after Whitewater didn't make payments).  In 1985
, Governor Clinton had negotiated major tax concessions to
keep International Paper from moving two of its plants out
of Arkansas.
+ Further, Patten, McCarthy & Associates, the accounting
firm which prepared the 1992 report, refused to vouch for
the accuracy of its findings, according to the Wall Street
Journal on January 12, 1994.  In addition, the Wall Street
Journal on April 1, 1994, reported that a draft analysis
of Whitewater finances prepared for the Clinton
presidential campaign "suggests that Bill and Hillary
Clinton may have taken improper tax deductions in 1979 and
1980 ."  The draft report was never made public.
+ The Washington Times reported on March 7, 1994, that
three current or former Rose Law Firm attorneys "were
summoned" to the Arkansas governor's mansion during the
1992 campaign by Hillary Rodham Clinton, "who personally
handed over records to be shredded at the firm's downtown
office."  The shredding began after a 3-8-92 New York
Times report on the Clintons' involvement with Whitewater,
and continued through the November 3 election.
+ James McDougal made accusations about Governor Clinton
in at least one tape-recorded conversation with Arkansas
GOP Co-Chairman and former gubernatorial candidate
Sheffield Nelson.  McDougal accused Clinton of not being
truthful about Whitewater losses (Newsweek, 2-7-94).
+ The Washington Post reported on November 11, 1993, that
the RTC named the Clintons' business partners, the
McDougals, as targets in an October 1992 referral to the
Justice Department.  According to a number of press
reports, Bill and Hillary Clinton were also named in the
referral as potential beneficiaries of a check-kiting
scheme conducted by the McDougals, but there was no
evidence they had any direct knowledge of the scheme.

Madison case is re-opened as part of the Whitewater
investigation.  US Attorney Charles Banks rushed the
referral out of his office without even reading the entire
case.  He admits later that he did so because it was
politically charged (involving the president elect and his
wife) and that he did not want to make waves as he was a
candidate for a federal judgeship.

David Hale uses a fraudulent maneuver to recapitalize his
Capital Mgmt Services.  Auditors in the Small Business
Admin. begin to pry into Hale's books.  The Clinton's
anxiety rises as they are afraid this investigation might
uncover the paper trail stemming from the $300,000 loan
given to Susan McDougal.

Clinton aide George Stephanopoulos calls the SBA on
several occasions, schmoozing them for their handling of
matters in Arkansas and asking pointed questions about how
the agency was being run.  At the time, Hale's firm was
the only SBIC in the state of Arkansas, so George was
directly attempting to find out what the SBA had

1992 - MARCH

To answer questions about their involvement in Whitewater,
the Clintons ask friend James Lyons to audit their
investment. He reports they received no return on their
$69,000 investment.


The RTC notified the Justice Department that Whitewater
benefited from the check-kiting scheme at Madison S&L.
Justice did not pursue the case.


The Clintons sold their half-interest in Whitewater to
McDougal for $1000.

1993: 	FBI Raids an Office; 
 	Foster Found Dead; 
	U.S. Attorney Finally Recuses Self; 
	White House, President Given Heads Up; 
	Calls for Investigations Begin

1-20-93: Bill Clinton inaugurated president--celebration
costs approximately $25 million. At least $154,000 worth
of radios, computers, televisions, VCRs, walkie-talkies
and pagers are stolen by Clinton inauguration employees
and volunteers.

1/21/93: Clinton breaks his first promise: to introduce his
program by the day after his inauguration.

1-22-93: Clinton lifts ban on fetal tissue research. 

1/22/93: Clinton abolishes the Competitiveness Council even
though its regulatory reform promised to save taxpayers $20
billion annually and create 200,000 jobs.

Attorney General nominee Zoe Baird withdraws after
admitting she hired illegal aliens and neglected to pay
their Social Security taxes.

1-25-93: Hillary Clinton is named to run Clinton's health
care reform task force, which the White House says will
cost taxpayers $100,000.

1-29-93: Clinton announces his plan to fully integrate gays
into all branches of the military. (See 7-19-93.)

February: The SBA are cracking down on Hale.
Clinton replaces the SBA administrator with Erskine Bowles
- a friend from North Carolina.  Bowles keeps whitehouse
chief of staff Mack McLarty informed on the Hale case.  So
now Bill has an insider at SBA he can use to do damage
control over anything implicating him or Hillary that
might come out of the Hale investigation.

2-5-93: Kimba Wood withdraws her name for nomination as
attorney general after its disclosed she employed an
undocumented worker as a nanny.

2-9-93: Clinton eliminates 83 percent of the staff at the
White House Office of National Drug Control Policy.

2-17-93: Clinton announces budget proposal, widely
recognized as a government-growth package with $359
billion in increased taxes and fees--breaking his campaign
promise to lower taxes for the middle class.  (See

3-9-93: In a letter to Clinton, Mochtar Riady--an
Indonesian billionaire whose family owns the
Indonesia-based cnonglomerate the Lippo Group and who owned
a bank in Arkansas in the 1980s--proposes normalizing
relations with Vietnam and maintaining China's
most-favored-nation trade status; both occur during
Clinton's term. (See 12-2-96.)

3-15-93: Clinton's economic stimulus package is introduced
the Senate. It includes, among other things, tax money for
"midnight basketball."

4-21-93: Republicans in the Senate kill Clinton's stimulus

4-29-93: Clinton nominates "Quotacrat" Lani Guinier as
assistant attorney general for civil rights. (See 6-3-93.)

5-18-93:  Hair Force One: Clinton gets $200 haircut
>from  Cristophe on Air Force One, shutting down two runways
at Los Angeles International Airport for an hour at an
estimated cost to airlines of $76,000.

5-19-93: White House fires, and asks the FBI to investigate,
seven career Travel Office employees and hires Clinton's
cousin, Catherine Cornelius.

5-25-93: Pay and benefits are reinstated for five of the
seven fired travel office employees and they're given other
government jobs. (See 11-16-95.)

6-3-93:  Clinton withdraws Guinier's nomination.  

6-9-93: Donna Henneman, a Justice Department employee in
the Executive Office for U. S. Attorneys, placed a telephone
call to L. Jean Lewis, a senior criminal investigator for
the RTC in Kansas City.  Henneman told Lewis that her office
finally located the Madison criminal referral within the
Fraud section of the Criminal Division, where the individual
assigned to the referral "didn't want to deal with it."
Henneman also said that the Criminal Division advised the
Associate Deputy Attorney General, Doug Frazier, that there
was "no identifiable basis for recusal of the U. S. Attorney
in the Eastern District of Arkansas" (Congressional Record,
3-24-94, pg. H- 2009).
+ The Washington Post reported on December 19, 1993, that
the Clintons "found that the company had not filed tax
returns for three years.  Those returns were prepared by an
Arkansas accounting firm under the direction of the late
Vincent Foster. . ." and filed in June 1993.

7-19-93: Clinton announces "Don't Ask, Don't Tell" policy
regarding gays in the military.
7-20-93: A Federal Magistrate in Little Rock, Arkansas,
authorized a search warrant for the business offices of
David Hale, owner of Capital-Management Investment Corp.
Hours later, Vincent Foster, Jr., left his office and was
reported to have committed suicide at Fort Marcy, Virginia,
on National Park Service property.
White House telephone logs show that in the hours before his
death, Foster received calls from a former colleague in the
Rose law firm and from Denver lawyer James Lyons, who had
prepared the Whitewater review for the campaign in 1992.
Lyons called Foster about two hours before the deputy
counsel left his office for the last time (Washington Post,
1-13-94), but Lyons claims that they did not connect.

Just before Foster's "suicide," Lyons talked with him
on the phone several times. After Foster's death, Bernard
Nussbaum removes Whitewater's files from Foster's sealed
office. An extended timeline of the events surrounding
Foster's death is also available.

7-20-93: Just hours after Vince Foster left the
whitehouse for the last time, Clinton unleashes the FBI on
Hale's office.  The search warrant specified files on Susan
McDougal's Master Marketing loan as one of its targets.

7-20-93: COPS--Secret Service Officer with 17 years of
witnessed Hillary 1Clinton's chief of staff, Maggie
carry a stack of file folders from the White House General
Counsel suite, in which lay Vince Foster's office, to Ms.
Williams's personal office.  He witnessed Ms. Williams lean
the stack against a cabinet while she opens the door.  He
witnessed Ms. Williams carry the files into office, reemerge
without the files, and lock her door.

CRONIES--Margaret Williams says she "viewed, inspected or
removed" nothing from Vince Foster's office on July 20,
1993.  She acknowledges Officer O'Neill's presence.
Therefore, according to Ms.  Williams, Officer O'Neill
hallucinated or committed perjury.

8-5-93 through 8-6-93: Without a single Republican vote,
House and Senate Democrats pass Clinton's budget proposal
for the largest tax increase in history.

8-9-93: The administration announces its plan to raise
grazing fees 130 percent. (See 5-31-95.)

8-10-93: Clinton signs largest tax increase in history,
raising taxes $280 billion over five years. (See 10-17-95.)

9-17-93: Clinton's Justice Department files a brief with the
Supreme Court advocating a more difficult standard to
convict pedophiles of child pornography. (See 11-4-93.)
White House, President, Get Advance Notice of RTC Referral  
 + In a September 29, 1993, conversation, Treasury General
Counsel Jean Hanson told White House Counsel Bernard
Nussbaum "that a (RTC) document recommending a criminal
investigation of Madison Guaranty would name the Clintons as
possible beneficiaries of illegal actions by the thrift"
(New York Times, 3-4-94).

1993 - OCTOBER

In a second referral, the RTC asked the Justice Department
to begin a probe of Madison S&L and Whitewater. (The
Clinton's are listed as "beneficiaries" of McDougal's

10-3-93: Eighteen U.S. soldiers killed and 78 wounded in an
attack in Somalia after Clinton's Defense Department denies
request to send armored vehicles and Blackhawk helicopters
for backup. (See 12-15-93.)

10-5-93: Clinton proposes changes in Medicare and Medicaid:
"Today, Medicaid and Medicare are going up three times the
rate of inflation. We propose to let it go up at two times
the rate of inflation. This is not a Medicaid or Medicare
cut...So when you hear all this business about cuts, let me
caution you that that is not what is going on." (See

+ On October 8, 1993, nine days after the Hanson-Nussbaum
conversation, the RTC issued a criminal referral to the
Department of Justice concerning a possible check-kiting
scheme involving Whitewater and Madison Guaranty, in which
the Clintons were named as possible beneficiaries of the
scheme.  "That would mean that Mr. Nussbaum took part in
discussing a criminal referral involving the Clintons while
it was still being evaluated by the House aide Bruce
Lindsey.  "I don't remember when I knew about it or who told
me about it, but it was just sort of presented as a fact, a
decision that had been made by the government.  And I didn't
think much about it at the time," Clinton said (Washington
Post, 3-8-94).

11-4-93: The Senate passes, 100 -- 0, an amendment
criticizing the Clinton administration's proposed
liberalization of child pornography laws.

November 5, 1993 - 7 Lawyers meet to discuss damage control.
They focus on David Hale and the RTC investigation into S&L
funds being siphoned into Gov. Clinton's coffers.  Some of
the cryptic notes read "RTC - people trying to get BC [Bill
Clinton] and JGT [Jim Guy Tucker]", "Vacuum Rose Law Files
WWDC [Whitewater Development Co] Docs".  It seems clear that
Clinton was concerned about the RTC investigation and what
it might uncover AS WELL AS the docs removed from Vince
Fosters office the night he died.

+ 11-5-93: U. S. Rep. John La Falce (D-NY), Chairman of
the House Small Business Committee, asked the SBA for a
report "on the activities of Capital-Management Services,
Inc.," by November 15 (Washington Times, 11-6-93).

+ 11-7-93: The Los Angeles Times reports that U.S.
Senator Lauch Faircloth requested the appointment of an
independent counsel to investigate the Whitewater matter in
a letter to Attorney General Janet Reno.

+ 11-9-93: - Pressure from Clinton gets RTC's Jean
Lewis off of the case.  She was leading the Madison

+11-9-93: The Associated Press reported that U.S. Attorney
for the Eastern District of Arkansas, Paula Casey, recused
herself and her aides from the matter "because of their
familiarity with some of the parties and the need to ensure
that there be no misperceptions about the impartiality of
the investigation."  Casey has a long history of involvement
with Clinton, including volunteering in his gubernatorial
But on November 11, the Washington Post reported that "two
weeks ago, U.S. Attorney Paula Casey told the RTC in a
letter that her office `concurs' with the earlier Justice
Department conclusion that there was `insufficient
information' in the first referral to warrant a law
enforcement probe.. ."
The Department of Justice Manual specifically requires
recusal if "a U.S.  attorney has a personal interest in the
outcome of the matter or because he/she has or had a
professional relationship with parties or counsel, or for
other good cause. . ." (Section 1-3.170, 1993-1 Supplement).
+ Also on November 9, House Republican members of the
Banking Committee, led by Rep. Jim Leach (R-IA), requested a
Banking Committee investigation of Whitewater (Washington
Times, 11-10-93).
+ 11-10-93: L. Jean Lewis, senior criminal investigator
for the RTC's Kansas City office, was notified that she was
to be replaced as lead investigator on irregularities at
Madison.  "The Powers That Be have decided that I'm better
off out of the line of fire. . ." she said in an electronic
mail message to a colleague (Congressional Record, 3-24-94,
pg. H-2011).
11-16-93: Associate whitehouse counsel, Neil Eggleston gets
copy of the SBA investigation of David Hale from SBA General
Counsel John Spotilla - a man appointed to the position
based on a recommendation of Hillary Clinton.  The Justice
Dept. goes ballistic when they learn of this.  Eggleston
returns the file after making a photocopy.  During testimony
in late November, long-time Clinton aide Bruce Lindsey
admitted to initiating this errand in order to see if the
Clinton's were mentioned in the file.

Everything about the above events suggests that the
whitehouse was on a search and destroy mission in the
attempt to control the docs from Vince Fosters office, the
SBA, and the RTC in response to Jean Lewis' criminal
referrals.  The significance of Hillary's personal guarantee
on the Flowerwood Farms note is clear: it directly ties
Hillary into a shady loan and thereby supports the inference
that she was a willing player in a garden variety bank

It is ironic that the attempts at concealment (shredding of
records at Rose Law, public denunciations of cooperating
witnesses, memory lapses etc) make it possible to prosecute
the entire chain of events (whose statute would have already
run out).  Principals of federal law applying to conspiracy
and conspiracy to conceal crime make a statute defense null
and void.  The original scheme - misuse of Flowerwood
mortgage money, use of Susan McDougal as a front for Bill on
the Hale loan, falsification of books at a federally insured
institution etc. encompass Hillary, her staff, the
whitehouse counsel's office, and Bill Clinton himself.

12-8-93: Surgeon General Joycelyn Elders suggests studying
the legalization of drugs. (See 12-9-94.)

12-15-93: Defense Secretary Les Aspin resigns after the
decision to deny tank and helicopter support to troops in


The White House requested the FBI background file on Billy
a Bush administration holdover whom the Clinton
administration fired as travel office director.  The White
House requests the files weeks after Dale is fired.

The Clinton administration tried to have Dale sent to
prison, but a jury found Dale not guilty in less than 90
minutes.  The Republicans have been trying to get the
government to compensate Dale (the Clinton's have
financially ruined the man), but Democrats stand in the way.
Dale says Clinton has not apologized to him.  Marlin
Fitzwater, former Bush press secretary, says, "The scary
part is the vindictiveness of this administration.  They
could have fired the travel office people for political
reasons but they chose to make criminals out of all of

+ On December 21, White House spokesman Mark Gearan revealed
that two White House aides, Hillary Clinton's chief of
staff, Maggie Williams, and Special Assistant Patsy
Thomasson (who has an extensive background in Arkansas
politics) entered Foster's office shortly after his July 20
suicide, but claimed that no files were taken.  However,
later, the White House said a file dealing with the Travel
Office had been removed. (Wall Street Journal, 12-21-93).
+ Numerous media reports also raised questions about the
handling of Foster's files by White House Counsel Bernard
Nussbaum, including his refusal to permit the FBI and U. S.
Park Police to examine key Foster documents.
+ On December 23, 1993, Senators Dole and D'Amato wrote
Banking Committee Chairman Riegle asking for an
investigation, which the chairman later refused to grant.
+ Also on December 23, President Clinton voluntarily agreed
to turn over Whitewater records to the Justice Department
(Hotline, January 4, 1994).  On the same day, President
Clinton's personal lawyer, David Kendall, asked the Justice
Department to subpoena Whitewater documents in "a move that
probably prevents their release under the Freedom of
Information Act" (Wall Street Journal, 1-6-94).

Fall 1993 to January 1994

The White House requests and receives over 300 files on
former White 
House employees.

January 1994:  	Clinton Relents;  
   		Special Counsel Appointed;  
		Senate Republicans Press for Banking Committee
1-2-94:  White House senior advisor, George Stephanopoulos, 
stated that all subpoenaed Whitewater documents have been
turned over the
Justice Department (ABC's This Week with David Brinkley,
1-3-94:  White House press secretary Dee Dee Meyers 
contradicted the previous day's pronouncement by Senior
Advisor George
Stephanopoulos, stating it will take "a couple of weeks" for
the White House 
to turn over the President's Whitewater papers to the
Justice Department 
(New York Post, 1-4-94).

1-6-94: Billy Dale file is placed in a vault in the office
of personal security, supervised by former Rose Law Firm
lawyer, William Kennedy.

1-12-94: Clinton agrees to bipartisan demands for a
Whitewater special counsel.

1-12-94: After intense media coverage of
Whitewater, Madison, and the Clintons' refusal to either
publicly release records or ask for a special counsel, they
gave in: White House Counsel Bernard Nussbaum formally
requested the appointment of a special counsel.  Attorney
General Janet Reno agreed, "reluctantly."
1-18-94: The President and Mrs. Clinton's
Whitewater documents begin to arrive at the Justice
1-20-94: On the first anniversary of Clinton's
inauguration, Reno appointed former New York U.S. Attorney
Robert Fiske (1976-1980 ) as special counsel with broad
authority to investigate the Clinton's involvement in
Whitewater.  He began work on January 24.

1-25-94: Clinton vows to veto anything less than universal
health care coverage.

1-30-94: Senate Republicans on the Banking Committee
formally requested a special meeting of the panel to pursue
hearings or an investigation into Whitewater
(AP/Philadelphia Inquirer, 1-30-94).  Chairman Don Riegle
(D-MI) rejected the request (Hotline, 2-1-94).
The Wall Street Journal filed suit in U. S. District Court
(New York City) to "force the release of reports on White
House lawyer Vincent Foster's death" (Wall Street Journal,

February 1994: Senate, House Democratic Leaders Reject
	       White House, RTC Officials Meet on Whitewater; 
	       New Grand Jury Impaneled; 
	       Rose Firm Cleared

2-1-94: Ricki Tigert, nominee to chair the Federal
Deposit Insurance Corp., (FDIC), and close friend of First
Lady Hillary Clinton, appeared before the Senate Banking
Committee and refused to recuse herself on
Whitewater/Madison matters (Wall Street Journal, 2-2-94).
But on February 8, in Madison Guaranty S&L (Wall Street
Journal, 2-9-94).
2-2-94: Deputy Treasury Secretary Roger Altman
arranged a private meeting at the White House for counsel
Bernard Nussbaum and others to talk about the
then-approaching deadline for a civil suit against the
Clintons (New York Newsday, 2/25).  Altman later said the
meeting was "a piece of awful judgment."
+ According to notes kept by RTC investigator L. Jean Lewis,
FDIC attorney April Breslaw visited her in Lewis's Kansas
City office from 3:50 p.m. until about 4:35 p.m. February 2,
1994.  Breslaw said that "the people at the top" keep
getting asked about Whitewater, and that the "head people"
would like to be able to say that Whitewater did not cause a
loss to Madison.  "I stated that if she wanted me to tell
her, unequivocally, that Whitewater didn't cause a loss, I
could not do that.  I could only reiterate the allegations
contained in the referral, which are based on fact, and that
it is my opinion and belief that Whitewater did, in fact,
cause a loss to Madison. . ."  (Congressional Record,
3-24-94, pg. H-2006).

2-8-94: Congressional Budget Office (CBO) says the Clintons'
health plan would increase the deficit by $74 billion, not
decrease it by $59 billion as the Clintons had promised.
(See 8-10-94.)
+ The Washington Times (2-9-94) reported that on February 3,
the Rose Law Firm, which at one time represented Madison
before Arkansas state regulators and later prosecuted
Madison for the FDIC, shredded documents related to
Whitewater.  Rose officials deny the shredding occurred (USA
Today, 2-10-94).  Special Counsel Robert Fiske said he will
investigate (Washington Post, 2-10-94).
2-9-94: The Senate voted 95-0 to extend to 12-31-95
(or until the date of termination of the RTC) the deadline
for civil fraud actions against failed Savings and Loans.
(Record Vote No. 36, Congressional Record, 2-9-94, pg.
2-10-94: U. S. Rep. Jan Meyers (R-KS) introduced a
House Resolution requesting that Clinton answer "whether he
or any White House official contacted the Small Business
Administration about Capital- Management Services or its
owner, David Hale (H. Res. 360, 103d Congress).
2-13-94: The House voted 356-52 to reauthorize the
Independent Counsel Act.
2-15-94: Special Counsel Fiske asked U. S. District
Judge Stephen Reasoner in Little Rock to convene an
additional federal grand jury for an 18-month term.  The
grand jury would look solely into the Whitewater case
(Arkansas Democrat- Gazette, 2-16-94).  Reasoner ordered the
grand jury impaneled the next day (Arkansas Democrat-
Gazette, 2-17-94).
2-17-94: The Washington Post reported that a parking
meter manufacturer, POM Inc., owned by Webb Hubbell's
father-in-law, Seth Ward, was also being targeted by
investigators.  POM was a Madison borrower, and Hillary
Clinton did work for the company as well.
+ The FDIC "found no evidence that the Rose Law Firm. .
.violated conflict of interest rules in its dealings with
Madison Guaranty" and "would not seek legal sanctions.
(Washington Post, 2-18-94).  But the FDIC report
acknowledged "that a shortage of documents made a complete
investigation impossible" (Washington Times, 2-18).
Additionally, the Wall Street Journal reported that "many of
the findings in the report are based in part on Mr.
Hubbell's recollections."
2-24-94: Deputy Treasury Secretary Altman's February
2nd White House briefing on Whitewater was revealed in a
Senate Banking Committee oversight hearing on the Resolution
2-25-94: Altman removed himself from further official
involvement in the government's Whitewater real estate probe
(Los Angeles Times, 2-26-94).
Also on February 25, Acting FDIC Chair Andrew Hove ordered
agency investigators to "reopen" their probes of two cases
involving the Rose Law Firm one on Rose's representation of
Madison Guaranty S&L and another regarding Dan Lasater
(Arkansas Democrat-Gazette, 2-26-94).
+ In late February, White House officials George
Stephanopoulos and Harold Ickes talked to Deputy Treasury
Secretary Roger Altman, expressing outrage over the RTC's
hiring of former Bush Administration U. S. Attorney Jay
Stephens to handle possible civil suits related to Madison
Guaranty (Washington Post, 3-26-94).
2-28-94: Republican Leader Robert Dole called
for full Congressional hearings into the Whitewater affair
following Altman's revelations about the meeting between
White House and Treasury officials (Arkansas
Democrat-Gazette, 3-1-94).


	Nussbaum, Hubbell Resign;  
  	11 Administration Officials Get Subpoenas;  
  	President Holds Press Conferences;  
	House, Senate Vote for Hearings;  
	Key Figure Gets Immunity
+ The Associated Press and the Washington Post reported
that Special Counsel Fiske has decided to re-examine the
conclusion that Vince Foster committed suicide (3-3-94).
+ Senator D'Amato revealed on March 3 that 43 GOP senators
"have pledged to hold up" Ricki Tigert's nomination to head
the FDIC until the Senate Banking Committee holds hearings
on the White House-Treasury briefings (Washington Post,
3-4-94: Ten White House and Treasury officials were
subpoenaed for documents and testimony: White House aides
Bernard Nussbaum, Mark Gearan, Harold Ickes, Margaret
Williams, Lisa Caputo and Bruce Lindsey; and Treasury aides
Roger Altman, Jean Hanson, Josh Steiner and Jack DeVore
(Boston Globe, Washington Post, 3-5-94).

3-5-94:  Criticized  for   interfering   in  the
investigation, White House Counsel Bernie Nussbaum resigns.
Nussbaum's resignation is accepted by President Clinton 
(Baltimore Sun, 3-6-94).

	"I did not do anything wrong.  There is nothing here.
	made an investment and I lost money, like a lot of
	Americans.  And that's all there is."
		Bill Clinton
		White House Press Conference
		March 8, 1994
3-6-94: White House Chief of Staff Mack McLarty admits on
CNN's "Late Edition" that he knew about the February 2nd
meeting between Treasury and White House aides over the RTC
criminal referral.  "I think it was arranged through my
office.  I did he had been told about a request by Federal
regulators for a criminal investigation into" Madison
Guaranty S&L (New York Times, 3-8-94).  

Sources said that White House advisor Bruce Lindsey "may
have told the Clintons about the issue" in October 1993
after press inquiries began (Washington Post, 3-8-94).

3-8-94: White House and Treasury file searches "produced
evidence of numerous additional contacts of an unspecified
nature between officials" relating to Madison S&L
(Washington Post, 3-9-94).
3-9-94: Senators Al D'Amato and William Cohen met with
Counsel Fiske over the matter of Senate hearings on
Whitewater after Fiske sent D'Amato a letter raising
objections to public hearings that might threaten his
investigation (Hotline, 3-9-94).
U. S. Senator Bob Graham (D-FL), chairman of the Democratic
Senatorial Campaign Committee, in an interview with
Knight-Ridder editors and reporters, called for Hillary
Clinton "to come forward and answer questions about her
involvement in the Whitewater controversy. . .If she were
another person unrelated to the president, who had served in
the same positions, business, legal representation, she
would be a legitimate figure for questioning. . . She needs
to be part of this openness" (Hotline, 3-10-94).
Eighty-one  House Republican  Members   asked the Office  of
Government Ethics to investigate  Mrs. Clinton's holdings in
an   investment  partnership   that  "sold   short   several
health-care stocks early  last  year" (Wall  Street Journal,
U. S. Senator Don Nickles suggested Deputy Treasury
Secretary Altman resign: "If there was someone who was
acting improperly, its him: Why isn't he gone?"
(Washington Post, 3-9-94)
3-10-94: Three White House staffers took the witness
stand before the Whitewater grand jury: Mark Gearan,
Margaret Williams and Lisa Caputo (New York Newsday,
3-11-94).  Also, Deputy White House Counsel Joel Klein
delivers White House documents subpoenaed by Special Counsel
Fiske (Ibid., Washington Post, 3-11-94).
Senate Republican Leader Robert Dole said Altman should step
down from his post at Treasury, and that Webb Hubbell should
do the same at Justice until Whitewater is settled ("Imus in
the Morning," WABC, 3-10-94).

3-11-94: The Chicago Tribune reported that Special
Counsel Fiske has subpoenaed records from another failed
real estate deal financed by Whitewater: Lorance Heights.
Whitewater funds used to purchase Lorance Heights, southwest
of Little Rock, may have come from the questionable $300,000
SBA-backed loan to Susan McDougal from Capital-Management
Services, Inc., the loan David Hale has alleged was
structured with help and pressure from Bill Clinton
(Washington Times, 3-24-94).

3-14-94: Under investigation for overbilling clients, mail
fraud and tax evasion, Associate Attorney General Webster
Hubbell resigns. (See 12-6-94.)

3-14-94: Associate Attorney General Webb Hubbell resigned
over a dispute with his former employer, the Rose Law Firm.

Clintons' tax returns from 1980 -92 revealed that the
First Couple may owe up to $45,411 in back taxes, interest
and penalties (New York Post, 3-3-16).  On March 17, CNN's
Wolf Blitzer quoted sources as saying that the Clintons'
attorney, David Kendell, has concluded the Clintons owe back
taxes, interest and possibly even penalties regarding

	"We made a bad investment, we lost money and 
	that's really all there is to it."
		Hillary Rodham Clinton
		Los Angeles Times,  
		March 15, 1994

3-17-94: White House senior advisor George Stephanopoulos
was subpoenaed by Special Counsel Fiske (New York Times,
3-18).  Nussbaum and Ickes testified before the grand jury.
Also, the Wall Street Journal reported that several Arkansas
investors, including a group once headed by White House
Office of Administration Director Patsy Thomasson, are being
investigated by the Securities and Exchange Commission in
connection with possible insider trading (3-18-94).
The U. S. Senate voted 98-0 to approve a Senate
investigation of the Whitewater affair.  Senate Leaders
George Mitchell and Robert Dole will determine the timetable
for hearings (Record Vote No. 62, Congressional Record,
3-17-94, pg. S-3178).

3-18-94: Press questions Hillary Clinton's $100,000 profit
cattle futures.

3-18-94: Deputy Treasury Secretary Roger Altman admits to
another contact with the White House concerning Whitewater
-- a meeting with Deputy White House Chief of Staff Harold
Ickes to discuss Altman's possible removal from all matters
involving Whitewater (Arkansas Democrat-Gazette, 3-19-94).
3-20-94: Former-Little Rock Municipal Judge and Capital-
Management Services, Inc., owner David Hale reached a plea
agreement with Special Counsel Fiske (Washington Times,
3-21-94).  Hale entered the plea in U. S. District Court on
March 22.
3-21-94: House Banking Committee Chairman Henry Gonzalez
abruptly called off an RTC oversight hearing scheduled for
March 24 "to blunt what he saw as a GOP move to turn it into
an indictment" of President Clinton (Knight-Ridder,
3-22-94). He also called for an investigation of the
Whitewater affair by the House.
3-22-94: The Senate Banking Committee released a third
letter from Deputy Treasury Secretary Altman disclosing
additional discussions he held with White House officials
about the RTC's criminal referral of Whitewater (Wall Street
Journal, 3-23-94).
The House voted 48-15 for a resolution identical to the one
adopted by the Senate committing Democratic leaders to hold
"good faith" talks with the GOP on when and under what
circumstances Whitewater hearings might be held (Dallas
Morning News, 3-23-94).

3-24-94:  New Charges, New Revelations

U. S. Rep. Jim Leach, ranking Republican member of the
House Banking Committee, addressed the House on a point of
personal privilege to issue four specific allegations, with
supporting materials: 

1) Whitewater was used to skim federally-insured deposits
>from  Madison.

2) the Clintons profited from Whitewater;

3) the Federal government's regulatory system "has been
flagrantly violated";

4) White House and Democratic congressional leaders are
using "closed society techniques" to resist a full airing of
the issue (USA Today, 3-25-94; Congressional Record,
3-24-94, pp. H- 1999-2020).
President Clinton held a nationally-televised news
conference, dominated by questions concerning Whitewater.
Clinton revised his previous assertion that his Whitewater
losses were $68,000, now calling it a loss of approximately
$47,000.  Additionally, the President announced that he
would release on March 25th the couple's tax returns for the
years 1978-1979 (Los Angeles Times, 3-25-94).  Money
Magazine shortly thereafter revised their estimate of taxes,
interest and penalties owed by the Clintons to $99,85 8
(Money Magazine news release, 3-30-94).
3-26-94: White House Staff Secretary John Podesta is
subpoenaed by Special Counsel Fiske to testify before the
Whitewater grand jury (Los Angeles Times, 3-27-94).
3-31-94: Josh Steiner, Chief of Staff to Treasury
Secretary Lloyd Bentsen, testified before the Whitewater
grand jury.  He reportedly kept a diary which listed
contacts between Treasury officials and the White House
(Arkansas Democrat- Gazette, 3-31-94).
The RTC also refused a request by U. S. Rep. Jim Leach for
access to all Whitewater-Madison records (Washington Times,

APRIL 1994:  
	Arkansas Senators Complain of Madison Exec's Treatment;

	RTC Releases Madison Records
+ The Washington Post revealed on April 1 that Arkansas U.S.
Senators David Pryor and Dale Bumpers last year wrote to top
Clinton Administration officials to "complain" about the
government's treatment of Seth Ward, a Madison executive and
father-in-law of Webb Hubbell.  Senator Bumpers' letters
went to White House Chief of Staff Mack McLarty, Deputy
Treasury Secretary Roger Altman, and the White House
Counsel's office.  Senator Pryor wrote to Altman and
Treasury Chief of Staff Josh Steiner.
4-4-94: The RTC released more than 8,000 pages of
documents from Madison Guaranty, under FOIA requests.  "The
newly released documents leave unanswered the Whitewater
records public as soon as he got them (Washington Times,
4-7-94: White House Staff Secretary John Podesta appeared
before the Whitewater grand jury ("Inside Politics," CNN,
4-8-94: James McDougal offers 2,000 pages of Whitewater
corporate records sent by the President and Mrs. Clinton's
attorney to major news organizations at a price: $4,000, $2
per page, to help defray his legal expenses.  Several major
news organizations, including the Washington Post, declined
(AP Worldstream, 4-7-94; Charles Osgood, CBS Radio News,
4-8-94).  McDougal later lowered the price to 50 cents a
page (Arkansas Democrat- Gazette, 4-10-94).

    Hillary's Cattle Futures
4-11-94: The Clintons' personal attorney, David Kendall,
said his clients paid $14,615 in federal and state
(Arkansas) back taxes and interest on an overlooked capital
gain in one of Hillary Rodham Clinton's commodity trading
accounts (Knight- Ridder/Philadelphia Inquirer, 4-12-94).
4-12-94: The Philadelphia Inquirer reported that
the Clintons' just-released tax records for 1978-1979
contradict earlier suggestions by the President that his
wife quit the commodities market "because she had gotten
jittery about trading while pregnant with Chelsea.  The new
records show she traded until May 1980 ; Chelsea was born in
February, 1980 ."  The President's previous statement at a
town meeting that Hillary got out after receiving a margin
call while pregnant is declared "no longer operative"
(Washington Post, 4-12-94).

4-11-94:  The Clintons pay $14,615 owed in back taxes. 

4-13-94: The Los Angeles Times reports that Hillary
Rodham Clinton "took tax deductions from the money-losing
Whitewater real estate venture to reduce her personal tax
liability on the extraordinary profits she earned from
commodities trading in the late 1970s," according to the
Clintons' Whitewater partner, James McDougal.  McDougal's
statements and documentation "offered the first evidence of
a connection between Mrs.  Clinton's commodity trading and
the Clintons' investments in the Whitewater venture."
4-22-94: On the day former President Nixon died,
following a stroke suffered earlier in the week, Hillary
Rodham Clinton held a White House press conference to answer
questions about Whitewater and her commodities trading.  U.
S. Senator Alfonse D'Amato, speaking immediately following
the event, said the press conference "raised even more
questions" than it answered (Hotline, 4-25-94).

MAY '94

COPS--FBI Agents Adams and Margolis--one the FBI's ethics
chief, the other the agencies most experience criminal
investigator--went to the White House to assist the Park
Police in a search of Vince Foster's office and files. In a
meeting with White House Counsel Bernie Nussbaum, close
friend of Hillary Clinton, Nussbaum told the agents that
White House people were too upset and fatigued to conduct
the search that day.  Nussbaum reached an agreement with the
agents to review each of Mr. Foster's files with the FBI.
 Agent Adams testified later that the agreement was for him,
 and Nussbaum to read each file until it became clear
whether the 
document was pertinent to the suicide investigation.  When
assistant Neuwirth restated the agreement incorrectly, he
corrected by Adams, Margolis, and Nussbaum.

CRONIES--Nussbaum, in sworn depositions, has stated that no
agreement of any kind was discussed or reached between him
and the FBI agents.  Again, the FBI agents, two of the best,
including one who is the FBI's foremost ethics expert, must
be lying, according to Nussbaum.
5-2-94: President Clinton "is adding Robert Bennett,
the noted criminal lawyer, to his legal team to fight a
threatened sexual-harassment suit and help defend against
Whitewater charges" (Wall Street Journal, 5-3-94).
5-5-94: Special Counsel Robert Fiske subpoenaed the
White House for "virtually all documents relating to Vincent
Foster" (USA Today, 5-6-94).
5-6-94: Paula Jones files $700,000 sexual harassment lawsuit
against Clinton.

COPS--Adams and Margolis returned to the White House at
10:00 a.m.  to conduct the search.  Upon arriving at
Nussbaum's office, Nussbaum said, "This is the way we're
going to do it," and proceeded to tell the agents the new
ground rules.  Under Nussbaum's new system, Nussbaum and two
other attorneys from the White House Counsel's office would
review the documents and determine, not pertinence to the
case, but whether the files are "personal," "attorney-client
privilege" material, or "executive privilege" material.  In
other words, no matter what the files contained, the FBI
agents would not be permitted to see anything.  Agent
Margolis strongly objected to Nussbaum's change of mind.
Agent Margolis warned Nussbaum that not permitting anyone
but friends of Clinton to see the documents was "a big
mistake."  Nussbaum said he would think about letting
Margolis and Adams see the files.

  Two and a half hours later, Nussbaum called Margolis and
Adams to inform them that he, Nussbaum, alone would
determine the relevancy of the documents. He told them
simply that they could not look at anything in Vince
Foster's office.  Agent Margolis, irritated at Nussbaum's
secrecy and his failure to keep his word, told Nussbaum, "If
this is the way its going to go, I might as well be back at
my office.  You can mail me the results."

  Nonetheless, Nussbaum alone looked at Foster's files and
determined their pertinence.  The FBI, and, therefore, the
had nothing but Nussbaum's word as to whether those files
information that may link the Clintons to illegal activities
in the 
Whitewater dealings.  And Nussbaum had already shown that
his word 
was worth less than a wooden nickel by his failure to abide
by his 
agreement with the FBI made the previous day.

  FBI Agent Margolis ends the session by informing Nussbaum
that if this were Xerox or IBM instead of the White House,
"I'd have a grand jury subpoena on this place in half an

CRONIES--Nussbaum, again, maintains that the FBI ethics
chief is either a liar or an idiot.  If the ethics chief is
lying, he risks losing his job and his pension after more
than 20 years of service to the Bureau.  If Nussbaum is
lying, he's covering up facts embarrassing to the Clintons.
Possibly criminal facts.

  In addition to the testimony in the hearings, we now know
that the Rose Law Firm violated conflict of interest rules
in handling government cases against savings and loans.  We
know that Hillary Clinton spoke to more people more often
about the Foster files than she had previously disclosed..

 Moreover, we know that Clinton ruled in favor of his
Whitewater partner James McDougal after Arkansas regulators
had ruled against him.  Of course, Clinton's action came
only after McDougal hosted a huge fund-raiser for Clinton's
reelection campaign. And, perhaps most damaging to Clinton,
we know that Clinton's campaign benefited from illegal loans

  What was in the files that Maggie Williams claims never to
have touched? How did Clinton reward his friends as governor
of Arkansas?  Did Clinton break the law by interceding on
behalf of Madison Guaranty Trust Corp.?

 The answers depend on whose lying--the cops who have
nothing to gain, or Clinton's myrmidons who have everything
to lose.


8-5-94: Clinton's pollster advises Democrat candidates to
distance themselves from Clinton.

8-9-94: Attorney General (AG) Janet Reno asks for an
independent counsel to investigate Agriculture Secretary
Mike Espy for accepting gifts from companies regulated by
his department. (See 10-3-94.)

8-10-94: CBO reports Clinton health care plan would cost
more than $1 trillion in its first eight years.

8-17-94: Amid charges of lying to Congress in his testimony
concerning Whitewater/Resolution Trust Corporation (RTC)
investigation, Deputy Treasury Secretary Roger Altman

8-18-94: Amid charges she briefed the White House on
Whitewater/RTC investigation, Treasury Counsel Jean Hanson


9-22-94: Justice Department says its investigating whether
Housing and Urban Development Secretary Henry Cisneros lied
to the FBI about payments he made to his former mistress.
(See 3-13-95.)


10-3-94:  Agriculture Secretary Mike Espy resigns.  

11-8-94: Tidal Wave: GOP gains 52 seats in the House and
eight in the Senate, winning control of Congress for the
first time since 1954. GOP picks up 11 governorships and 19
new majorities in state legislative chambers. Not one
incumbent GOP governor, senator or representative loses.

11-9-94: Alabama Sen. Richard Shelby switches to the
Republican Party.

11-21-94: Kennedy resigns over other matters.

12-1-94: White House says all FBI background files were
moved on this date to White House archives.

12-6-94: Former Associate Attorney General Hubbell pleads
guilty to mail fraud and tax evasion. (He's later sentenced
to 21 months in prison.)

12-9-94: Surgeon General Elders resigns after suggesting
schoolchildren should be taught how to masturbate.

1-11-96: House Government Reform and Oversight Committee
subpoenas all records relating to Billy Dale in its
investigation of the White House Travel Office.

White House says such records are protected by privacy
rights.  House  panel renews subpoena.

2-6-95: Clinton submits FY '96 budget, containing around
billion in deficits for each of the next three years. (See

3-3-95: Colorado Sen. Ben Nighthorse Campbell switches to
Republican Party.

3-13-95: AG Reno concludes HUD Secretary Cisneros made
payments to his mistress of between $42,000 and
$60,000--contradicting Cisneros' claim to the FBI that his
yearly payments totaled no more than $10,000. (See 5-24-95.)

4-3-95: The Medicare Board of Trustees, which includes three
members of Clinton's Cabinet, says Medicare will go bankrupt
in seven years.

4-10-95: Georgia Rep. Nathan Deal switches to the Republican

5-17-95: AG Reno appoints an independent counsel to
investigate Commerce Secretary Ron Brown on charges of
violating tax and financial disclosure laws and taking

5-19-95:  Clinton's first budget is defeated in the Senate,

5-21-95: White House retrieves Billy Dale's FBI files from

5-22-95: After the Clinton administration intervened against
term limits, the Supreme Court, in a 5-4 decision,
invalidates term limits passed by 23 states. The two
Clinton-appointed justices cast the deciding votes.

5-23-95: Clinton announces: "From the beginning of my
campaign for president, I said that the one thing I did not
think we should do is to send American troops into combat
into Bosnia." (See 9-15-95.)

5-24-95: AG Reno appoints an independent counsel to
investigate HUD Secretary Cisneros.

5-31-95: Clinton admits he made a "mistake" in proposing to
raise grazing fees 130 percent.

6-16-95: The CBO reports Clinton's 10-year "balanced budget
plan" would leave a $209 billion deficit in 2005. (See

6-26-95: Texas Rep. Greg Laughlin switches to the Republican

8-7-95: Louisiana Rep. Billy Tauzin switches to the
Republican Party.

8-17-95: Clinton's partner in the Whitewater venture, Jim
McDougal, is indicted on 19 counts of conspiracy, mail
fraud, making false statements and false bank reports, and
misapplying funds; Susan McDougal is indicted on eight
counts of conspiracy, wire fraud, mail fraud and making
false statements; and Arkansas Gov. Jim Guy Tucker is
indicted on 11 new counts of conspiracy, wire fraud, making
false statements and misapplying funds.  (See 2-6-96.)

9-15-95: By allowing Medicare spending to grow at more than
two times the rate of inflation, Clinton claims the
Republican plan to save Medicare "includes a...Medicare
cut...It would dismantle Medicare as we know it."  (See

Secretary of Defense William Perry announces U.S. combat
forces will be sent to Bosnia.

10-13-95: Clinton meets with James Riady of the Lippo Group,
who is Mochtar's son, and John Huang, a deputy assistant
secretary of Commerce who worked for the Lippo Group before
joining the Commerce Department.  Riady discusses U.S. trade
policy toward China, where the Lippo Group has a major
financial stake, and John Huang asks to be transferred from
the Commerce Department to the fundraising arm of the DNC.
(See 9-9-96.)

10-17-95: Clinton admits: "It might surprise you to know
that I think I raised them [taxes] too much, too."

10-24-95:  Clinton's second budget is defeated in the
Senate, 96-0.

10-26-95:  House Republicans pass the Balanced Budget Act of

10-28-95:  Senate Republicans pass the Balanced Budget Act
of 1995.

11-9-95: The Government Accounting Office (GAO) releases a
report showing the Clinton administration spent $13.4
million of taxpayers' money preparing its doomed health care
initiative, and another $433,966 defending itself against a
lawsuit that challenged the secrecy in which the initiative
was assembled.

11-10-95: Mississippi Rep. Mike Parker switches to the
Republican Party.

11-13-95: Clinton closes the government to avoid agreeing to
a balanced budget.

11-16-95: After a Kafkaesque 30-month investigation, Billy
Dale, the former Travel Office director whom the White House
accused of taking kickbacks, is acquitted. (See 8-1-96.)

11-19-95: Clinton finally says he agrees to a seven-year
balanced budget using the most recent CBO numbers,
re-opening the government.

11-28-95: Clinton press secretary Mike McCurry indicates the
administration won't seriously try to balance the federal
budget until after the election: "I suspect that those kinds
of issues will have to be settled in November of 1996." (See

12-1-95: Louisiana Rep. Jimmy Hayes switches to the
Republican Party.

12-7-95: Clinton presents his third unbalanced budget for FY
'96. (See 12-19-95.)

12-15-95: Clinton presents his fourth unbalanced budget for
FY '96, sending the federal government into its second

12-19-95:  Clinton's third budget is defeated in the House,

12-31-95: Part of the federal government remains shut down
because of Clinton's vetoes of three appropriations bills
and his refusal to sign the Balanced Budget Act.


1-4-96: Hillary Clinton's legally binding written responses
to questions posed by Congress are contradicted when the
White House releases 1993 memo by former White House
Administrator David Watkins in which he says Hillary was
"insistent" he fire the White House Travel Office employees.

1-6-96: Clinton introduces his FY '96 budget, which proposes
$66 billion in new taxes. (See 1-23-96.)

1-9-96: Clinton breaks promise to "end welfare as we know
by vetoing bipartisan welfare reform bill.

New York Times columnist William Safire calls Hillary
Clinton a "congenital liar."

1-22-96: Hillary Clinton subpoenaed by Whitewater grand
(Four days later, she becomes the first first lady to
testify before a grand jury.)

1-23-96: Bill Clinton announces "era of big government is
over." (See 3-19-96.)

2-6-96: Clinton subpoenaed in bank fraud and conspiracy
of James and Susan McDougal, his Whitewater partners. (See

2-15-96: Clinton has "kept all the promises he meant to
keep," according to White House adviser George
Stephanopoulos on CNN's Larry King Live.

2-20-96: White House releases more than 100 pages of
"mistakenly overlooked" Whitewater records subpoenaed in

3-19-96: Clinton introduces 1997 budget -- $60 billion in
taxes; 1996 budget still unresolved.

4-10-96:  Clinton vetoes partial-birth abortion ban. 

4-19-96: Pope John Paul II condemns Clinton's veto of the
partial-birth abortion act as "shameful." Raymond Flynn,
Clinton's ambassador to the Vatican: "I think the Catholic
Church and the Holy Father are absolutely right on this."

4-28-96: Clinton, testifying in the Whitewater trial, denies
he pressured then -- Little Rock municipal Judge David Hale
to lend $300,000 to Whitewater partner James McDougal in
1986 . (See 5-28-96.)

5-15-96: In his Supreme Court brief asking for a delay in
sexual harassment suit filed against him, Clinton seeks
protection under the Soldier and Sailor's Relief Act of
1940--which gives immunity against civil suits to active
members of the armed forces--because he is commander in
chief and, therefore, is on active duty. (See 5-28-96.)

5-16-96: Senate Whitewater committee votes to subpoena FBI
reports showing that Hillary Clinton's fingerprints were
found on Rose Law Firm documents--subpoenaed in
1994--discovered in the White House residence quarters this

Nine Republican women legislators sign a letter to Clinton
asking him to fire one of his top advisers, Dick Morris, who
was paid for a poll he conducted on behalf of Alex Kelly, a
convicted burglar who fled the country in 1986 after being
arrested for allegedly raping two teen-age girls.

5-20-96: White House admits Clinton knew Dick Morris was
working for alleged rapist Alex Kelly and "didn't object."
(See 8-29-96.)

5-28-96: James and Susan McDougal, Clinton's partners, and
Arkansas Gov.  Jim Guy Tucker are found guilty. (See

Tucker announces he will resign from office on July 15. (See

5-30-96:  House schedules contempt of Congress vote against
Jack Quinn.  White House comes up with 1000 of the requested
pages, some of which show White House asked for Dale's
confidential FBI records going back 32 years.

Clinton drops claim he is protected by his status as
commander in chief from testifying in the sexual harassment
suit against him.

5-9-96: White House counsel Jack Quinn asserts "executive
privilege" on behalf of President Clinton in refusing to
turn over 3,000 documents connected to the travel office
firings.  Attorney General Janet Reno reviews documents.

[Clinton lies again.  He previously said he would never
assert "executive privilege," but does.  What is he hiding?]

[Clearly, those 1000 pages did not merit "executive
privilege," but instead, contained damaging information
about the Clinton Administration.  So what's in the other
2000 pages?!]

6-5-96:  White House documents show original request for
Billy Dale FBI records came from office of White House
counsel Bernard Nussbaum, who resigned in April of 1994.
Nussbaum denies all knowledge.

[Of course Nussbaum is going to deny this!  If he knows
about it, Clinton knew about it.]

6-5-96:  White House says request was routine and Dale's
records were mistakenly sought due to clerk error.  House
Government and Oversight Chairman, Rep.  William Clinger,
asks for list of all FBI background reports requested by
White House.

[Once again, thank goodness for the 1994 elections.]

6-6-96:  White House says watchdog General Accounting Office
actually is the agency that asked for Dale's FBI files.  GAO
denies this.

[As usual, the White House seeks to put the blame elsewhere.
Recall how Clinton put the blame for Waco on Janet Reno.]

6-7-96:  White House acknowledges it obtained FBI files on
more than 300 former White House employees, but says they
were never read.  Marceca (the man who collected the files)
tells his lawyer he read all the files and passed on
"derogatory" information to his boss, Craig Livingstone.

[Says they were "never read?!"  Then why obtain them?  This
is the current version of Clinton's smoking pot, but not

6-8-96:  Arkansas Gov. Jim Guy Tucker is indicted on three
felony charges of making false statements and conspiracy to
defraud the United States. (See 8-17-95.)

6-13-96:  Recently retired FBI agent, Gary Aldrich, writes a
WSJ editorial saying he was "deeply disturbed" by what he
saw during the 2 1/2 years of doing background checks for
the White House.  The retired agent said he and other agents
repeatedly questioned whether the administration misused the
process.  "The White House's explanation - that it was 'an
honest bureaucratic snafu' - is really too much for this FBI
veteran to believe," he wrote.  Aldrich also points out that
in addition to ordering FBI files of hundreds of
Republicans, the White House also ordered periodic
examinations of those employees believed to be disloyal.

[Hmmm.  Could the Clinton's have been looking for
information to black- mail "disloyal people" into silence?]

6-14-96:  Some of the 340 people whose files went to the
White House said they are preparing a letter to express
their outrage.  Several are considering taking legal action
against the administration for violations of the Privacy

The deposition of Craig Livingstone was canceled when
Livingstone said he needed more time to prepare.

[Translation - Livingstone needs to consult with the White
House to get his story straight.]

6-15-96:  The FBI accuses Clinton's staff of improperly
obtaining classified FBI background files on at least 408
people, dozens more that previously suspected, for "no
official purpose" and "without justification."  FBI Director
Louis Freeh, a Clinton appointee, criticized the White House
for seeking the reports on employees of previous
administrations.  Freeh said, "The prior system of providing
files to the White House relied on good faith and honor.
Unfortunately, the FBI and I were victimized."  White House
spokesman Mike McCurry was asked about Freeh's remark that
he and the bureau had been "victimized."

McCurry was at a loss for an explanation.  

[When the FBI weighs in, you can't dismiss this as
Republican political rhetoric.  Sure the Republicans are
going to try to capitalize on this.  But we could also be
witnessing a VERY serious bit of corruption and abuse of

6-4-96: Medicare Trustees release report stating that
Medicare is headed for bankruptcy as early as 2000, two
years earlier than was predicted in last year's report.

6-5-96:  The White House acknowledged that background files
on former travel office director Billy Dale "may have
mistakenly been sought" from the FBI seven months after Dale
was fired.

6-6-96:  Los Angeles Times: White House sought confidential
background documents on Billy Dale, fired White House Travel

6-6-96:  Michael McCurry, presidential press secretary,
suggested that the General Accounting Office, the
investigating arm of Congress may have wanted the files on
Dale. A GAO spokeswoman issued an immediate denial.

6-7-96: White House admits it ordered FBI files of dozens of
Republican leaders, claiming it was working off an "outdated
list." (See 6-16-96.)

6-7-96:  The list was expanded to 338 persons, including
former U.S.  Secretary of State James Baker III
6-7-96:  Mark Fabiani, a White House lawyer and spokesman,
said, "It appears that the purpose of the project in which
this Army person was involved was to reconstruct the
background information on employees held over from the Bush
Administration." He declined to name the Army person.

6-9-96:  News reports identify two staff members as
responsible for the files: civilian army investigator
Anthony Marcesa and his supervisor, Craig Livingstone. Both
have been active in political campaigns. A Democratic
consultant, Dennis M. Casey, accused the two of dirty tricks
in an earlier campaign. Livingstone and Marcesa issued
statements denying wrongdoing involving files at the White

6-9-96:  President Clinton tells reporters, "It appears to
have been a completely honest bureaucratic snafu."

6-10-96: Veterans Affairs Secretary Jesse Brown and NASA
chief Dan Goldin tell the Senate Budget Committee Clinton
told them not to implement the budget cuts he proposed in
his 1997 budget.

6-11-96: Clinton calls the FBI files scandal a "completely
honest bureaucratic snafu."

6-13-96:  In response to an FBI query, the White House added
71 more names to the list of files that were improperly

6-13-96:  Retired FBI agent Gary W. Aldrich, who served at
the White House for five years, wrote in the Wall Street
Journal that he had 1warned the FBI management about
political favoritism in the White House background checks.

6-14-96: FBI Director Louis Freeh says the White House
acquisition of the FBI files represented "egregious
violations of privacy."

6-14-96:  FBI Director Louis Freeh issued a statement saying
that his agency had been "victimized" by the White House.
Later, he accepts responsibility for allowing the
mishandling of the files.

6-16-96: Contradicting White House statements, the Secret
Service says it did not generate the outdated list the White
House claimed it used.

6-17-96: White House places personnel security office
director Craig Livingstone, directly responsible for
obtaining the FBI files, on administrative leave.
(Meanwhile, no one at the White House can remember who hired
him.) (See 10-25-96.)

6-19-96: Livingstone tells the House Government Reform and
Oversight Committee that the room housing the FBI files was
often left unsecured.  (Livingstone himself did not get
proper security clearance until more than a year after he
began his job as head of White House security.) AG Reno asks
FBI to expand its probe to determine how and why White House
obtained FBI files on former Reagan and Bush administration
staff members.

6-19-96:  White House Chief of Staff Leon Panetta issued a
statement blaming the "the procedures in place for some
three decades" for being inadequate. He set up new rules for
the White House office of personnel security.

6-20-96: Reversing her call for the FBI to lead the inquiry,
AG Reno says Whitewater independent counsel Kenneth Starr
should investigate how the White House acquired the FBI

6-23-96:  White House counsel Jack Quinn says that the
administration will leave the investigation of the files to
Congress and the independent counsel Kenneth Starr.

6-25-96: White House finally releases more than 2,000
documents relating to the Travel Office firings, originally
requested two years ago by congressional investigators.

6-26-96:  Craig Livingstone resigns.

6-28-96: Livingstone's assistant, Anthony Marceca, takes the
Fifth Amendment on White House acquisition of FBI files.

7-2-96: White House documents reveal that Livingstone's
resume listed his stint as "counter-event operations"
supervisor for the '92 Clinton-Gore campaign, where he hired
people to heckle Bush. (See 7-18-96.)

7-7-96: Clinton provides videotaped testimony in the
Whitewater-related trial of Arkansas bankers Herby Branscum
and Robert Hill.

7-15-96: Arkansas Gov. Tucker refuses to resign. After
outcry and Democrat protests, he turns his seat over to GOP
Lt. Gov. Mike Huckabee.

7-17-96: In testimony to the House Government Reform and
Oversight Committee, Secret Service agent Jeff Undercoffer
says: "I have seen cocaine usage...I have seen crack usages"
reported in the FBI files of more than 40 White House aides.
They were given temporary security clearance despite
objections from the Secret Service.

7-18-96: The Washington Times: Secret Service warned the
administration that Livingstone posed a threat to White
House security.

8-1-96: Clinton refuses to sign legislation to pay the legal
fees accrued by Billy Dale and the other fired Travel Office
employees. The next day, the White House asks Congress to
pay the legal fees of Clinton aides in return for Clinton's
signature. (See 9-12-96.)

8-7-96: Big Brother: White House refuses a House
subcommittee request for information about a computer
database--which may provide access to security files,
violating privacy rights--containing the names, addresses,
political affiliations and other information on 200,000
legislators, news reporters and political contributors. (See

8-18-96: Clinton tells CBS News he will not rule out raising
taxes during a second term.

8-20-96: Substance Abuse and Mental Health Services
Administration releases report showing that between 1992 and
1995 teen drug use skyrocketed 105 percent, including a jump
of 183 percent in monthly use of LSD and other hallucinogens
and a jump of 141 percent in marijuana use.  (See 9-4-96.)

8-22-96: With an eye toward re-election, Clinton signs GOP
welfare reform bill. (See 9-20-96.)

8-23-96: The nonpartisan Common Cause says the DNC has
received hundreds of thousands of dollars from a South
Korean firm, Cheong Am America. (See 9-21-96.)

8-29-96: Hours before Clinton's nomination acceptance
speech, Dick Morris, Clinton's chief political adviser,
resigns amid reports linking him to a prostitute. (See

9-3-96: Clinton orders vote-seeking cruise missile attacks
against Iraqi forces after they invade the internationally
protected Kurdish zone of northern Iraq.  (See 9-14-96.)

The Washington Times: White House lawyers and staffers have
been secretly organizing the Clintons' legal defense
strategy on Whitewater and congressional and criminal
activities-costing taxpayers $1.3 million a year.

9-4-96: Gen. Barry R. McCaffrey, Clinton's drug czar, tells
the Senate Judiciary Committee the administration took its
"eye off the ball" concerning drug abuse and that if
policies don't change soon, "we will reap a harvest of
crime, violence and lost opportunity."

9-6-96: The Washington Times: The
administration--anticipating political advantages in the
votes of new citizens--pressured the INS to grant
citizenship to thousands of foreigners lacking FBI
clearance; dozens with criminal records became citizens.
(See 10-24-96.)

9-9-96: Clinton meets with James Riady of the Lippo Group,
who congratulates Clinton on his policy toward China,
including his decision to separate China's trading
privileges from human rights concerns, and urges Clinton to
intensify his efforts in China. Bruce Lindsey and Mark
Middleton also attend the meeting. (See 10-16-96.)

9-10-96: Big Brother: White House documents reveal the
Clintons ordered the database on more than 200,000 citizens.
White House calls the system, which cost $540,000, an
"expanded Rolodex." (See 9-20-96.)  After categorically
denying it, White House finally admits Clinton knew Dick
Morris had an illegitimate daughter.

9-12-96: Senate votes to reimburse Billy Dale, falsely
accused by the White House of financial wrongdoing, for his
legal bills.

The nonpartisan Joint Tax Committee announces Clinton's
proposed $100 billion in tax cuts would turn into a $64
billion tax increase at the end of the century.

White House refuses to release Clinton's medical records.
Asked whether they were free of anything a "normal person"
would consider embarrassing, press secretary Mike McCurry
responds: "I wouldn't say that."

9-14-96:  Sen. Sam Nunn, ranking Democrat on the Armed
Committee, declares Saddam Hussein "stronger today" than he
was before 
Clinton's missile attack. (See 9-19-96.)  

9-16-96:  Interior Department proposes plan to levy $350
million a year in 
taxes on outdoor equipment--from birdseed to binoculars. 

9-17-96:  Interior Secretary Bruce Babbitt retracts his

9-18-96: White House "engaged in an unprecedented misuse of
executive power and executive privilege" in covering up the
events that led to the Travelgate affair, concludes a House
Government Reform and Oversight Committee report.

9-19-96: CIA Director John Deutch tells Congress Saddam
Hussein is stronger politically than he was before Clinton's
missile attacks.

9-20-96: Clinton tells ABC's Barbara Walters he might put
Hillary in charge of his plan to repeal parts of the welfare
reform plan he signed just last month.

Big Brother: White House database may contain as many as
300,000 names and 50,000 organizations and have cost
taxpayers as much as $1.7 million, says the chairman of the
House Government Reform and Oversight subcommittee, Rep.
David McIntosh.

9-21-96: Los Angeles Times: A $250,000 donation to the DNC
>from  a South Korean company violated election laws because
the company--not its American subsidiary, Cheong Am
America--made the donation. The fund- raiser is DNC Finance
Vice Chairman John Huang. (See 10-16-96.)

9-23-96: While working at Rose Law Firm, Hillary Clinton and
Web Hubbell drafted documents for a failing thrift that were
used to deceive bank examiners and divert $300,000 to
Hubbell's father-in-law, concludes a Federal Deposit
Insurance Corp. report.

Clinton tells PBS' Jim Lehrer he hasn't ruled out granting
pardons for Jim Guy Tucker and Jim and Susan McDougal.

9-26-96: The Washington Times: White House refuses to
a Pentagon- commissioned report suggesting Clinton's
non-strategy to combat drug use has failed.

White House refuses to release documents to House
investigators trying to determine whether the administration
knew U.S.-trained Haitian security agents murdered political
opponents of the U.S.-supported regime.

10-1-96: White House refuses to release a memo by FBI
Director Freeh and DEA Administrator Thomas Constantine that
condemns Clinton's efforts against drug use.

10-8-96: Energy Secretary Hazel O'Leary's travels abroad
cost taxpayers more than $4.5 million, concludes a report by
the Energy Department's inspector general.

10-11-96: DNC says it received $425,000 in contributions
Arief and Soraya Wiriadinata after the Indonesian couple met
with DNC fund-raiser John Huang. The Wiriadinatas lived in a
modest townhouse in Virginia; Arief was a gardener. But
Soraya's father is an investor in the Lippo Group. After the
couple moved back to Jakarta, they gave the DNC the final
$295,000 payment. (See 11-22-96.)

10-12-96: The New York Times: The Riadys and the Lippo Group
had their U.S. banking practices repeatedly criticized by
federal regulators for illegal activities--including money

10 13, 1996 -- Congressional Republicans raise questions
$425,000 in donations to the DNC attributed to Arief
Wiriadinata, the
wealthy son-in-law of a business partner of Mochtar Riady
and his son
James, Indonesians who run the Lippo Group business
Wiriadinata now lives in Jakarta. 

10 14, 1996 -- The DNC acknowledges receiving another
contribution from Wiriadinata and his wife, bringing the
total from
them to $450,000. 

10-16-96: Los Angeles Times: Deputy White House counsel
Lindsey describes the September 9, 1996 Oval Office meeting
between Clinton and Riady as "basically a drop-by social
visit" in which no issues of U.S.  policy were discussed.

Oct. 16, 1996 -- Democratic Party Chairman Christopher J.
Dodd tells
reporters that Republican presidential candidate Bob Dole,
during his
unsuccessful 1988 bid for his party's presidential
accepted $1,000 from the Riady family. 

DNC returns a $10,000 contribution from the chairman of
Cheong Am America because the money was not generated by the
firm's U.S. subsidiary.

DNC admits it raised $140,000 at a fund-raiser featuring
Vice President Albert Gore at a Buddhist temple. Dozens of
Buddhist monks, who have taken vows of poverty, contributed
up to $5,000 each. Religious institutions are not allowed to
contribute to political organizations.

10 17, 1996 -- Wall Street Journal reports that residents of
branches of the Hsi Lai Buddhist Temple have donated some
$50,000 to
the DNC. 

10-18-96: DNC says it will reimburse the Buddhist temple
$15,000 the temple spent for food and other expenses at the
fund-raiser, but it will keep the $140,000 raised at the

DNC announces it has suspended John Huang, who helped raise
$2.5 million for the Clinton campaign.

10 18, 1996 -- DNC says it will reimburse the Hsi Lai
temple near Los Angeles $15,000 to cover the cost of an
April 29
fund-raiser. Vice President Al Gore attended the event, and
religious institutions are barred from partisan political
the event netted the DNC $140,000. A nun told reporters she
had been
given $5,000 in cash by an individual who then asked her to
write a
check to the DNC for the same amount. 

10-20-96: DNC Chairman Chris Dodd tells CBS' Face the Nation
that John Huang will answer the press' questions before
Election Day. That afternoon, Dodd changes his mind.

10-21-96: DNC gives up $5,000 from a Buddhist nun who said
she was handed $5,000 in cash and told to write a check to
the DNC.

10-22-96: Gore says he thought the Buddhist temple
fund-raiser was a "community outreach" event, not a

10-23-96: A federal judge orders U.S. marshals to find John
Huang and serve a subpoena on him for a deposition in a
lawsuit probing allegations of illegal Commerce Department

Los Angeles Times: Although Yogesh Gandhi owes $10,000 in
back taxes, had his driver's license revoked for failing to
pay fines and claims to be a pauper, he managed to give the
DNC $325,000. (See 11-6-96.)

10 23, 1996-- The Justice Department releases photographs
showing a
convicted Miami drug dealer Jorge Cabrera posing with First
Hillary Rodham Clinton and with Vice President Gore at a
fund-raising dinner last December. Cabrera was invited to
the White
House last year after sending a $20,000 contribution to the
National Committee. 

10-24-96:  The Washington Times: FBI estimates 100,000
immigrants with 
criminal histories have become citizens since August 1995,
when the 
administration pushed the INS to naturalize more than 1
million new citizens. 

10 24, 1996 -- A U.S. marshal, attempting to serve a
reports Huang as missing. 

10-25-96: At AG Reno's request, a special federal appeals
court authorizes Kenneth Starr to determine if Bernie
Nussbaum committed perjury when he told Congress he didn't
know who hired Livingstone.

Oct. 25, 1996 -- Judge Royce C. Lamberth orders Huang to
show up for
work so he can be served his subpoena. 

10 27, 1996 -- Huang's lawyer accepts the subpoena, but
Huang fails
to appear the next day. 

10-28-96: U.S. News & World Report: Nearly $300,000 in
contributions to the DNC came from 37 donors who listed the
DNC headquarters as their home address.

For the first time in 22 years, the DNC announces it will
not file an FEC pre-election finance report, which contains
information detailing spending and contributions.

Oct. 28, 1996 -- The DNC announces it won't file a
spending report with the Federal Election Commission,
unprecedented since the FEC was founded in 1974. After an
outcry, within 24 hours the DNC does an about-face and
promises to
release a list and file its FEC report. 

Oct. 29, 1996 -- After issued a court order, Huang appears
interrogation by conservative group Judicial Watch. 

10-29-96: DNC releases raw data concerning its finance
report, but not the report itself.

At his deposition, Huang says while he was in hiding he was
buoyed by a "message of support" from Hillary. Asked if he
had raised money for the Democrats while working at the
Commerce Department, Huang says he "couldn't recall." (See

10-30-96: RNC vows to go to court to freeze the DNC's
to raise or spend money until it files a proper report.

10 30, 1996 -- Bowing to pressure, the DNC releases a
partial list
of its donors. 

10 30, 1996 -- Huang testifies in court-ordered appearance
that he
met numerous times with President Clinton and the first lady
at the
White House, and discussed issues related to Indonesia. 

10-31-96: The New York Times: Mark Middleton, who left the
White House in early 1995, distributed business cards on his
trips to Taiwan to raise money for the Clinton campaign that
featured the White House seal, identified him as "special
assistant to the president" and listed a White House
telephone number that gave this recording: "Thank you for
calling the White House. To reach Mack McLarty, please dial
(202) 456-2000. To reach Mark Middleton, please dial (202)
737-9305 [the number for Middleton's trading company,
Commerce Corporation International]...Again, thank you for
calling the White House."

RNC Chairman Haley Barbour holds a news conference and plays
the White House phone message for reporters. Before the
conference ends 15 minutes later, the White House has erased
the message.

10 31, 1996 -- Secret Service logs indicate Huang visited
the White
House 78 times during the 15 months before October. 

Nov. 1, 1996 -- During a campaign appearance in California,
Clinton calls for a ban on donations from non-U.S. citizens.

10 1, 1996 -- The White House offers a partial explanation
for the
high number of John Huang visits: Two different men with
that name
visited the White House during the 15-month period. 

11-1-96: DNC releases a summary of its finance report, but
not the report itself. Clinton says he and the DNC have
"played by the rules" in soliciting campaign
contributions--and then calls for campaign finance reform.
(See 11-12-96.)

DNC Executive Director B. J. Thornberry admits that in
mid-1994 the DNC stopped running computer checks on donors
contributing $30,000 or more.

11 2, 1996 -- The Democratic National Committee acknowledges
in reviewing the sources of its donors, and pledges

11-4-96: White House admits James Riady of the Lippo Group
visited the White House "at least" 15 times during the last
four years.

The Washington Times: Grigori Loutchansky--a Russian with
strong ties to the Russian Mafia who is not allowed into
Canada for security reasons (his company, Nordex, has been
linked to nuclear weapons smuggling)--attended a 1993 White
House dinner.

The Detroit Free Press: An Iraqi-born family, the Danous,
bought a private audience with Clinton after the family
contributed more than $400,000 to his campaign. "It was to
help Iraq," says Julie Danou, adding that a responsive
Clinton promised to help change U.S. policy by "lifting the
embargo."  By the eve of the election, at least 213 elected
Democratic officials have joined the GOP since Clinton's
election, and 38 Democratic members of the 104th Congress
have resigned or announced their retirement.

Nov. 4, 1996 -- In scathing attack, Reform Party
candidate Ross Perot says nation is heading for a "second

11-5-96: Clinton becomes the third president in U.S. history
to be elected twice without a majority of the popular vote.

11-6-96:  Half of Clinton's Cabinet resigns. 

DNC returns a $325,000 donation from Yogesh Gandhi, who is
not a U.S.  citizen.

11-7-96: DNC returns $50,000 given by George Psaltis, a
Greek-not U.S.-citizen.

10-8, 1996 -- In first post-election news conference,
Clinton says
contributions from Indonesian sources had "absolutely not"
his foreign policy. The president calls for campaign finance
and endorses McCain/Feingold legislation. 

11-8-96: The Washington Times: Hillary Clinton pushed the
Commerce Department to hire John Huang, despite the
objections of then-Secretary Brown.

11-12, 1996 -- Democratic National Committee co-chairman Don
holds press conference and declares, "Never has there been
any desire,
plan or intent to evade requirements of applicable laws and
regulations," Fowler said. "In fact, we have tried to comply
with all relevant requirements. 

11-12-96: Commerce Department's inspector general begins to
review the relationship between John Huang and his former
employer, the Lippo Group, which paid Huang a compensation
package of $87 9 ,000 in mid-1994 when he left the
Indonesian conglomerate to join Commerce.

DNC National Chairman Don Fowler says he doesn't know if DNC
fund raisers had solicited contributions overseas, how much
in contributions the DNC has returned or how much money John
Huang has raised--and he wouldn't tell reporters even if he
did know.

11-13, 1996 -- Justice Department turns down the request of
John McCain (R-Ariz.) for an independent prosecutor. 

11-15, 1996 -- DNC announces it will investigate
contributions made
in the name of Thai businesswoman Pauline Kanchanalak and
Washington business Ban Chang International. Records show
one of the
contributions for $32,500 was made two days after
Kanchanalak visited
John Huang at the Commerce Department. 

11-16, 1996 -- President Clinton acknowledges discussing
issues with James Riady, but said the Indonesian businessman
influenced his decisions. 

11-18, 1996 -- A letter from GOP Rep. Ben Gilman to Commerce
Secretary Mickey Kantor indicates that Huang's phone records
>from  the
Commerce Department show he made at least 70 calls while
still at
Commerce to his former employer, the Los Angeles office of
the Lippo

11-18, 1996 -- John Huang is fired from his fund-raising job
in what
DNC calls a "typical layoff" following an election. 

11-19, 1996 -- White House aides confirm that Bruce Lindsey,
a top
aide to the president, urged that contacts between Clinton
and Lippo
Group executive James Riady be described as "social."
Following the
election, Clinton acknowledged discussing policy issues with

11-19, 1996 -- Asked about contributions from wealthy
and the practices of Huang, Clinton, travelling in
Australia, urges
reporters to remember "what happened to Mr. Jewell in
Atlanta." That
was a reference to Richard Jewell, the security guard
targeted by the FBI following the bombing near the Olympic
Park in

11-20-96: DNC returns $253,000 in illegal contributions from
a Thai businesswoman, Pauline Kanchanalak, and her
mother-in-law, Praitun Kanchanalak.

11-22-96: DNC returns $450,000 in donations from the
Wiriadinatas, the Indonesian couple who has since moved back
to Jakarta--bringing to more than $1.5 million the amount of
illegal or questionable donations the DNC has been forced to

11-22, 1996 -- Former Associate Attorney General Webster
Hubbell is
questioned by federal grand jury about his contacts with
James Riady. 

Justice Department requests the FBI interview DNC
contributors to investigate potential criminal misconduct.

11-23, 1996 -- DNC announces it will return $450,000 to
Arief and
Soraya Wiriadinata, former permanent U.S. residents with
ties to the
Lippo group, who had lived in a Virginia suburb, donated the
money in
1995 and 1996, but did not file a tax return in 1996. It is
largest donation returned to date. 

11-26, 1996 -- White House releases list of 1993 inaugural
that shows Huang and James Riady donated $100,000. 

11-27-96: Environmental Protection Agency proposes new Clean
Air Act regulations that even it estimates will cost
companies at least $8.5 billion `annually. Arguing the rules
are based on dubious research and would even change the way
we barbecue hamburgers, more than 500 businesses and local
government groups are fighting them.

12-2-96: The Wall Street Journal: Despite pre-election
that Clinton's contacts with the Riadys were primarily
social, White House admits it has a March 9, 1993 letter
>from  the Lippo Group's Mochtar Riady outlining policy
positions he wanted Clinton to take regarding Indonesia,
China and Asia.

12-2, 1996 -- Clinton acknowledges that he received a letter
in 1993
>from  Mochtar Riady urging him to normalize relations with
Clinton called it a "straightforward policy letter." 

12-3, 1996 -- The Clinton Administration releases to
correspondence between the White House and the Lippo Group,
anger from congressional Republicans who sought the letters

12-6, 1996 -- Man Ya Shih, a Buddhist nun, tells the FEC the
she donated to the DNC came from her own funds. That
statements she made in October that a Democratic operative
gave her
$5,000 in cash and then asked her to write a check for the
same amount
to the DNC. 

12-6, 1996 -- Lawyers confirm that former Commerce
official Melinda Yee testified that she threw out notes on
for U.S. trade missions, even after a federal judge had
ordered them
turned over to the conservative group Judicial Watch. Yee
said that no
one told her of Judicial Watch's Freedom of Information Act
for them. She discarded them two months after a court order
that they
be turned over. 

12-10-96: White House documents reveal that less than three
weeks after he was sworn into office, Clinton agreed to meet
Indonesian billionaire Mochtar Riady in the Oval Office.

12-11-96: Mike McCurry admits the Inaugural festivities
be for the fat cats."

12-11, 1996 -- Documents show that less than three weeks
Clinton's 1993 inauguration, Huang contacted the White House
letter, pushing for a meeting between Clinton and Huang's
former boss
at the Lippo Group, Mochtar Riady. The letter has a
handwritten note
>from  Clinton in the margin, saying it would be "okay to
spend a few
minutes with him when he's in D.C." 

12-17, 1996 -- Trustees for Bill and Hillary Clinton's legal
fund, which was set up to help defray their Whitewater legal
disclose that $640,000 in questionable donations have been
Many of the donations were delivered by Charles Yah Lin
Trie, a top
Democratic fund-raiser. 

12-19, 1996 -- The Justice Department expands its
investigation of
DNC fund-raising to include the activities of the Clintons'
defense fund. The department issues subpoena to the
Presidential Legal
Expense Trust, asking it to provide details surrounding
$640,000 in
questionable donations the fund returned. 

12-20, 1996 -- The administration confirms that Trie helped
get Wang
Jun, the head of a Chinese weapons trading company, invited
to a White
House reception at a time of trouble in U.S.-China
relations. White
House Press Secretary Mike McCurry says Clinton did not know
who Wang
was and that if the administration had known, the invitation
would not have been extended. 

12-28, 1996 -- Documents released by the DNC reveal the
National Asian Pacific American Campaign Plan, a strategy to
some $7 million from Asian Americans. Records show the plan
John Huang, the DNC, the Clinton-Gore campaign, and Doris
deputy assistant to President Clinton. 

01-15, 1997 -- Vice President Gore's office acknowledges
that he was
aware the Buddhist temple event on April 29, 1996, was
"finance-related." That contrasted with an earlier statement
in which
he said he thought the event was "community outreach." On
Jan. 24 Gore
acknowledges his "mistake" and says, "I knew it was a
political event
and I knew there were finance people who were going to be

01-16, 1997 -- The Boston Globe reports that the president
withdrawn his support for an immigration reform bill in
March 1996
that ended automatic entry for the siblings of naturalized
His move came one month after receiving a memo from John
Huang stating
the top Asia-Pacific American priority was to keep sibling
in place. In February 1996, Huang had organized an Asian
that raised $1.1 million. The White House denied any

01-23, 1997 -- The New York Times reports that Maria Haley,
longtime associate of Bill Clinton who works at the
Bank, lobbied for a $6.5 million financing deal on behalf of
businesswoman Pauline Kanchanalak, whose family last year
donated more
than $200,000 to the DNC. The deal, intended to finance a
video store franchise, ultimately didn't go through, and
most of the
$200,000 in contributions was returned because its origins
unclear. John Huang, a longtime associate of Haley, raised
part of the

01-24, 1997 -- Documents show that at least 100 coffees
arranged by
the DNC were held at the White House, some of which were
attended by
Clinton and Gore. Of particular interest is one held last
May with
more than a dozen executives of the nation's biggest banks,
attended by the president, Secretary of the Treasury Robert
Rubin, and
Comptroller of the Currency Eugene Ludwig, the nation's top

01-28, 1997 -- In his first post-inaugural press conference,
President Clinton acknowledges that "mistakes were made" but
"categorically" denied any policies were impacted by
(Full Transcript.) 

01-29, 1997 -- Sen. Fred Thompson (R-Tenn.) reveals plans to
hire a
staff of 80 persons to investigate campaign fund-raising on
a budget
of $6.5 million. (By contrast, the Watergate committee had a
staff of
90; according to Thompson, the Watergate probe would have
cost about
$7 million in today's dollars.) On 01-28, Thompson, in a
speech on
the Senate floor, outlines the scope of his investigation,
to be thorough and to allow consideration of Republican

02-3, 1997 -- Former Deputy Chief of Staff Harold Ickes
comes under
fire after CNN obtains memo showing Ickes advised a major
contributor, Warren Medoff, on how he might best distribute
more than
$1 million in contributions, and how he might receive
beneficial tax
treatment. Ickes later says he shouldn't have used a
government fax
machine and telephone, but that he didn't violate any laws. 

02-4, 1997 -- A Justice Department subpoena of an Arkansas
businessman provides first indication that the Clinton
is a focus of Justice's investigation. 

02-5, 1997 -- The White House concedes that President
Clinton had
stamped "The President Has Seen" on a memo listing attendees
at a
White House coffee that included the comptroller of the
currency, DNC
national chairman Don Fowler and finance chairman Marvin

02-10, 1997 -- Former DNC chairman Don Fowler tells The
Boston Globe
that the DNC routinely solicited attendees of White House
coffees for
funds, and that they collectively donated $27 million. 

02-13, 1997 -- Clinton calls for a "vigorous" and "thorough"
investigation into reports that representatives of the
Republic of China tried to direct financial contributions
>from  foreign
sources to the DNC. Rep. Gerald Solomon tells reporters,
potential finding is that our foreign policy has been sold
for a
price, national security has been sold for a price." 

02-14, 1997 -- The White House releases documents suggesting
ignored warnings from the National Security Council that DNC
fund-raisers' trips to Asia might jeopardize U.S. foreign
Particular concern was raised about DNC Managing Trustee
Johnny Chung,
who gave $366,000 to the DNC, and pressed Clinton for
assistance in
his efforts to free Chinese-American human rights activist
Harry Wu.
NSC called Chung a "hustler" and his mission "very
Documents also showed NSC's concerns about Gore attending an
event at
a Buddhist Temple in California last April were ignored. 

02-16, 1997 -- The Washington Post reports that six months
Hillary Rodham Clinton visited Guam in September 1995,
residents of
the commonwealth donated nearly $900,000 to the DNC. The
White House
denied that a subsequent change in Guam's immigration policy
connected in any way. 

02-16, 1997 -- House Government Reform and Oversight
Chairman Dan
Burton (R-Ind.) issues 20 subpoenas and announces plans to
more than 500 people. 

02-20, 1997 -- Asian-American businessman alleges Huang
him to funnel more than $250,000 to the Democratic National
by pretending the money was contributions from the his
members. Huang's lawyer denies the charge. Records show
Huang went on
fund-raising trips while still a Commerce employee. 

02-21, 1997 -- The newly installed DNC head, Colorado Gov.
Romer, concedes that following an audit, the DNC will likely
another $1 million in questionable contributions. 

02-21, 1997 -- Huang and Webster Hubbell refuse to provide
to congressional investigators, citing the Fifth Amendment.
surface Huang has asked for partial immunity in return for

02-25, 1997 -- Clinton acknowledges he personally encouraged
rewarding DNC donors with overnight stays at the Lincoln

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