CAMPBELL HITS FEINSTEIN ON CHINA.

Byline: Rick Orlov Staff Writer

SANTA MONICA - Trailing in public opinion polls, Republican Rep. Tom Campbell went on the attack Tuesday against Democratic incumbent Sen. Dianne Feinstein, accusing her of failing to fully disclose her husband's interests in business dealings in China.

In the first of two debates this week in their Senate campaign, Campbell accused Feinstein of having voted on matters involving China for several years and failing to fully disclose how much business activity was being done by her husband, investment banker Richard Blum.

``I think the people of California would find it interesting that she was voting on matters that affected the financial well-being of a member of her family,'' Campbell said after the debate broadcast by Adelphia Cable to a statewide audience and to the nation over C-SPAN.

An angry Feinstein vehemently denied any wrongdoing - citing letters from the Senate Ethics Committee allowing her to vote on matters involving China - and said the Campbell attacks were ``desperate attacks by a losing candidate.''

Feinstein said she had reported all of her husband's business dealings for years - including those involving China - and that he had taken steps to sell all his Chinese-related interests over the past two years and placing any profits into a charitable fund.

``I don't know any other spouse of a politician who would take such steps,'' Feinstein said.

Campbell said he believes Blum continues to benefit because he received management fees from a fund he heads, Newbridge Ltd.

Feinstein aides said Blum is not involved in any of the Chinese dealings and that the fee is for the other investments he supervises.

The new aggressive approach from Campbell - trailing Feinstein by more than 20 percentage points, according to recent polls - follows his promise earlier this year not to involve a candidate's spouse in the campaign.

``I said that if nothing else came up, I would do that,'' said Campbell, a moderate Republican who has served nine terms in the House of Representatives and also teaches law at Stanford University. ``But new information came out recently (in news reports) and I feel I have to address it.''

However, he acknowledged his campaign provided some of the information to reporters.

``We talk to reporters all the time,'' Campbell said. ``If they asked for information, we provided it.''

Feinstein said she considered it a personal attack on her character.

``I have been in public life for 30 years and no one has ever questioned my integrity and honor,'' Feinstein said. ``My integrity and honor is all I have.''

During the hourlong session, the two found rare agreements - both oppose Proposition 38, the school voucher initiative, and support Proposition 39, which reduces the amount of votes needed for school bond issues.

They strongly disagreed on Proposition 36, which would provide diversion programs for first- and second-time drug offenders.

``There's a reason hard drugs are illegal - they are bad for you,'' Feinstein said. ``It makes no sense to me to use (hard) drugs to treat drug offenders. It's like giving alcohol to an alcoholic to get him to stop drinking.''

Campbell countered that the war on drugs had failed, resulting only in imprisoning so many people.

``It seems to me we ought to look at ways to keep people, young people, out of jail,'' Campbell said.

CAPTION(S):

2 photos

Photo: (1) CAMPBELL

(2) FEINSTEIN