RENO: NO COUNSEL; CLINTON, GORE CALLS DEEMED LEGAL.

Byline: Angie Cannon and Robert A. Rankin Knight-Ridder Tribune News Wire

Attorney General Janet Reno, in one of the most politically charged decisions of her tenure, decided Tuesday not to seek an independent counsel to investigate telephone fund-raising calls made by President Clinton and Vice President Al Gore.

Under pressure from congressional Republicans and even FBI Director Louis Freeh to request a special counsel, Reno said the facts in the case do not justify that action. But she emphasized that the Justice Department's fund-raising probe is continuing and that she would not hesitate to seek an independent counsel if evidence of criminal wrongdoing emerges.

``This decision was mine, and it was based on the facts and the law, not pressure, politics or any other factor,'' Reno said during an unusual news conference, at which she announced her action.

Congressional Republicans immediately assailed Reno.

``When all the quibbling, lint-picking, and fine distinctions are made, this matter all boils down to a loud and clear conflict of interest between the attorney general's duty to the public to enforce the law and her personal loyalty to the president who elevated her to the top law enforcement post in the land,'' said Rep. Henry Hyde, R-Ill., chairman of the House Judiciary Committee.

Rep. Dan Burton, R-Ind., said: ``Once again, the attorney general had the opportunity to do the right thing. Once again, she has failed. I am absolutely flabbergasted.'' Burton announced that he would request Reno and Freeh come to Capitol Hill next week to explain their differing views.

Republicans were bolstered by revelations this week that Freeh had written a memo to Reno saying he thinks it is a conflict of interest for the Justice Department to investigate the fund-raising practices of the White House. The thrust of Freeh's memo was leaked to some news organizations, and late Tuesday morning Reno went to FBI headquarters to meet briefly with him.

The dispute highlights the strained relations between the two law enforcement agencies. The leaking of Freeh's concerns was seen as a way to strengthen his position with Republicans in Congress and demonstrate the FBI's independence from the White House. The bureau has felt burned by the White House because of several high-profile incidents, such as the time the White House improperly requested and received hundreds of confidential FBI files.

During her news conference, Reno praised Freeh's professionalism and conduct but said it was her decision in the end. ``I alone am responsible for it under the law,'' she said, declining to talk about their morning conversation.

After Reno's news conference, Freeh issued a public statement that he has a ``strong and amicable'' relationship with Reno. He said he appreciated ``the full opportunity given the FBI to express our views and recommendations. . . . Lawyers and investigators can and often do disagree. I and all of my colleagues in the FBI respect her decision and understand fully that it is the attorney general's by law to make.''

A 120-person Justice Department task force has been investigating allegations of criminal wrongdoing in the 1996 presidential election, including fund-raising calls made by Clinton and Gore. An obscure federal law prohibits soliciting campaign contributions from federal property, but the Justice Department never has prosecuted anyone for making such telephone calls.

Reno said investigators uncovered three occasions when the president placed fund-raising-related calls from the White House. Two occasions were simply thank-you calls, she said. But telephone records, investigative interviews and the president's schedule all show the third set of calls was made from the White House residence, not from the Oval Office, which is not against the law, Reno said.

Reno also said investigators found Gore made calls from his office to about 45 people in 1995 and 1996 to raise money for the Democratic National Committee. Reno said investigators found Gore solicited money only for generic party-building activities, not money for specific candidates, which is not against the law.

She said investigators found no evidence that Gore was aware of a DNC practice of using some of the money for candidates. But she said the department's investigation would look into that practice by the party.

After Reno's announcement, Clinton issued a one-line statement: ``The attorney general made her decision based on a careful review of the law and the facts, and that's as it should be.''

Gore told reporters in Middlebury, Conn., he was ``very pleased'' by the decision. ``Now that there's been a full and independent review, this issue of the phone calls can be put behind us.''

Gore also took a swipe at Republican critics, saying ``The same people who are making the partisan attacks are the ones who are blocking campaign-finance reform.''

Reno also rejected an independent counsel to probe allegations that former Energy Secretary Hazel O'Leary solicited a $25,000 charitable donation in exchange for meeting with Chinese businessmen.

Her decision

In deciding not to call for an independent counsel, Attorney General Janet Reno:

Concluded that telephone fund raising by President Clinton and Vice President Al Gore did not violate election laws

Said her campaign finance task force continues to investigate Democratic fund-raising practices

Promised to seek a special counsel if continuing inquiries implicate Clinton or other top officials

Removes a big obstacle that threatened Gore's presidential aspirations.

PROS AND CONS 

Here are some arguments for and against naming an independent counsel to investigate fund-raising telephone calls by President Clinton and Vice President Al Gore.

AT ISSUE

Clinton and Gore apparently solicited campaign funds while using telephones in the White House complex. A law prohibits fund raising from federal property.

ARGUMENTS IN FAVOR OF NAMING AN INDEPENDENT COUNSEL

Fund raising from federal property is against the law, and violations should be prosecuted.

Even if prosecution isn't warranted for the telephone calls, there's enough evidence of other questionable fund-raising practices to justify the appointment of an independent counsel.

Any exoneration of Clinton and Gore by the Justice Department will be criticized as politically motivated. Only an investigation by an independent counsel would be perceived as nonpartisan and thorough.

ARGUMENTS AGAINST NAMING AN INDEPENDENT COUNSEL

The Justice Department has never prosecuted anyone for fund raising from federal property.

The intent of the law on fund raising was to prevent government officials from shaking down employees for donations. There is no evidence Clinton or Gore ever did that.

The Justice Department is continuing its own investigation of campaign-finance abuses. If the probe uncovers wrongdoing, an independent counsel can be named.

Knight-Ridder Tribune News Wire

CAPTION(S):

Photo, 2 boxes

PHOTO (color) Janet Reno

Box: (1) Her decision (see text)

(2) Pros and cons (see text)