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Sunday Morning News

Bill Clinton Contends Contributions Played No Role in Marc Rich Pardon Decision

Aired February 18, 2001 - 8:09 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: Former President Clinton has made his first extended explanation of why he pardoned international financier Mark Rich. He laid out the legal and political decisions behind the pardon in an essay for today's "New York Times" and the former President strongly denied there was any deal to trade money for a pardon.

And at the White House now, the spotlight would normally shine on the new President's first days in office. But as CNN's Eileen O'Connor reports, the light is still shining on the last president -- Eileen.

EILEEN O'CONNOR, CNN CORRESPONDENT: Yes, it is, and actually, you know, Kyra, that's a benefit for George Bush according to some Republicans in Congress because it's doing exactly what he said he would do, and that is showing a sharp contrast between his administration and the previous administration in terms of ethics. You know, Mr. Bush did promise to bring new dignity to the White House and that is why former Clinton aides are saying they believe the Republicans are trying to fan this controversy.

So Mr. Clinton has taken his case directly to the people, making the case as to why he pardoned Mark Rich.

Now, one of the reasons he said he did so is because the original case was done by an over zealous prosecutor, possibly, under RICO racketeering charges instead of tax evasion charges, as other such cases were later settled.

He also talked about recommendations from Israeli officials, high ranking officials like Ehud Barak, the former Prime Minister, who talked about Mr. Rich's philanthropic activities, their charitable activities. And he also talked about the fact that the Justice Department had been neutral but leaning, although Justice Department officials say they wish they had more time to review the case. They would have made a different decision possibly there.

Now, Mr. Clinton, writing in the "New York Times" in an editorial said that he did nothing wrong, that justice, he believed, would be served by the pardon. He says, "The suggestion that I granted the pardons because Mr. Rich's former wife Denise made political contributions and contributed to the Clinton Library Foundation is utterly false. There was absolutely no quid pro quo," Mr. Clinton said.

As you know, that subject is under investigation. There's a criminal investigation by the U.S. Attorney in New York to see if there's any link between contributions and the pardon. Also, two Congressional inquiries, one in the House, one in the Senate. Again, Democrats on Capitol Hill and allies of the President say that they believe that this is again another hate campaign staged by Republicans.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL (D), NEW YORK: These investigations have not been initiated by Clinton as by the U.S. Attorney's office, by Dan Burton and by a variety of other things. But, you know, Clinton always has these peaks and valleys as relates to public response and he always ends up on his feet and I would suspect that if you took a national poll in terms of his popularity, that it will be high up there.

(END VIDEO CLIP)

O'CONNOR: Unfortunately, a national poll was recently taken, Kyra. The latest Zogby International poll actually show's Mr. Bush's overall favorable ratings have risen 10 percent while Mr. Clinton's have fallen eight percent since a month ago -- Kyra.

PHILLIPS: Now, there's two other investigations going on in Congress and also the U.S. Attorney's office. What are the status of those, Eileen?

O'CONNOR: Well, they are ongoing and they're not, and Charles -- Representative Burton says he's going to be holding hearings March 1st. He intends to call three Clinton aides, his former Chief of Staff John Podesta, former White House Counsel Bruce Lindsey and the other former White House Counsel, Beth Nolan, to talk to them about what they know about how this pardon was granted, what information was given and what kind of pushes were made.

Also, as you know, Senator Arlen Specter continues his investigation in the Senate. Now, Mr. Burton does want to get Denise Rich, the ex-wife of Marc Rich, before that Congressional hearing, but they are waiting because with this federal prosecutor in New York starting a criminal investigation, they have to wait and see what the Justice Department says before they can offer her immunity. But they would like to have her testify. She's already taken the Fifth Amendment so the only way she would testify is if she would be able to get immunity -- Kyra.

PHILLIPS: All right, Eileen O'Connor, CNN live on Capitol Hill, thanks -- Miles.

O'CONNOR: Now, in his "New York Times" essay today, Mr. Clinton said the pardon of Marc Rich was reviewed and advocated by three Republican attorneys, including Vice President Cheney's chief of staff, Lewis Libby. That has drawn a strong denial from the White House, Press Secretary Ari Fleischer saying, "In no way, shape or form was Mr. Libby involved in the pardon of Mr. Rich." That was a quote.

Now we should note through that Congressional documents that we have looked at it indicates Libby was an attorney involved in the Rich case at one time.

Now, while Clinton's op-ed piece gets high placement in the "New York Times" today, the "Washington Post" is playing the story somewhat differently. The "Post's" opinion staff writes, and this is a quote, "The pardons of so many undeserving people with money and connections were emblematic of a consistent contempt for the office of which Mr. Clinton was temporary steward. The disrespect was evident in the renting out of the Lincoln Bedroom, the hiring out for White House coffees, the readiness to entangle staff in his own misdeeds with Eric Holder the final casualty, the lying under oath."

PHILLIPS: Why did Bill Clinton feel the need to write this essay? To look at that, we turn to CNN Senior Political Analyst Bill Schneider.

Good morning, Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Good morning, Kyra.

PHILLIPS: So what do you think? Why did Clinton have to do this? Do you think this was odd or a typical Clinton move?

SCHNEIDER: He had to do it because the question that was being raised by everyone was what was his motive in giving this pardon. I mean no one could figure it out. Democrats, Republicans were standing up and saying we need a motive, we need an explanation here, because the only explanation available was money, influence and connections bought the pardon.

So he had to put this on the record.

PHILLIPS: So, does it settle the issue?

SCHNEIDER: Oh, are you kidding? He's given the pro-pardon argument but this, these arguments that he's given are going to be debated. The question was why was the President so secretive and evasive? Why did he bypass the usual procedures? He acknowledges, in fact, in what he wrote today, he said in retrospect the process would have been better served had I sought the U.S. Attorney's views directly. You see it there on the screen. That's the woman who was so enraged by the granting of the pardon that she's now launched a criminal investigation.

He also says he regrets that Mr. Holder, the Deputy Attorney General, did not have more time to review the case. Why did he bypass all the usual procedures? We don't know.

PHILLIPS: Bill, it doesn't seem like Clinton wants to leave the spotlight or leave the spotlight very gracefully.

SCHNEIDER: Well, look, he's been involved in politics his whole life. He's been involved in an election every two years since 1974. He's in New York, the media capital of the world, not San Clemente or Plains, Georgia. His wife is a United States Senator. You get the sense that the man craves being in the spotlight.

By my count, there have been six controversies since the time he left office, six -- the pardons, the plea bargain when he left office, the pranks that were supposedly committed by his staff, the plunder of the White House, the gifts that he took away and then, of course, the speeches that were canceled because people were angry that their firm invited the President to speak for a very high fee and the space, the office space that he tried to rent and then he had to move to Harlem.

This man cannot stay away from controversy. He's -- one person called him a waling feeding frenzy.

PHILLIPS: People still seem to love him. Look at him walking through Harlem, he's like a rock star.

SCHNEIDER: He is a very polarizing figure. He has fervent admirers and a lot of people hate this man. Oddly for a person, for a President who tried to bring the country to the center, which I think he did in terms of policy, his values, his lifestyle, his character completely polarized the United States and that's going to remain true for some time.

PHILLIPS: All right, now in your view, how do you think this is going to affect the Bush presidency?

SCHNEIDER: Well, Eileen just reported that the White House seems to think it helps them because, look, the contrast could not be more helpful to Bush. He's a man of character, he's bringing dignity back to the White House.

But, you know, this is not the time when President Bush wants to distract attention from the White House by having stories endlessly written and broadcast about Bill Clinton. He wants the spotlight. He's the new President. He wants to lay out his agenda. He wants to talk about the direction he wants to take the country. He's talking about a different message every week, whether it's tax cuts or defense or next week, supposedly, the budget.

And what are we talking about? We're talking about Bill Clinton. Sooner or later, the new President has to resent that, probably sooner.

PHILLIPS: Mr. Schneider, thanks for being with us this morning.

SCHNEIDER: Sure, Kyra.

PHILLIPS: All right, former President Ronald Reagan's daughter Patty is confessing to swiping several dozen matchbooks and a few other items from the White House. Davis rarely visited the presidential mansion, but in "The Washington Post" today, she writes that she also took half a dozen notebooks, an old sock and a bowling ball. Davis says she might have taken more with a moving van.

She sent President Bush a check for $25 for his presidential library and asked for a pardon.

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