ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, December 5, 1993                   TAG: 9312050130
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium


BUSH, REAGAN BLASTED

In a sharp attack on two former presidents, the Iran-Contra prosecutor's final report concludes that Ronald Reagan "set the stage" for the scandal's illegal activities and George Bush failed to tell the truth about his role, according to sources familiar with the document.

Lawyers for Reagan and Bush have read the report by Iran-Contra prosecutor Lawrence Walsh and were quick to dispute its conclusions. Reagan's lawyer called them "utterly irresponsible" while Bush's attorney called on Walsh to "fold up his tent."

The soon-to-be-released report says Reagan created an atmosphere in which top aides felt free to maneuver outside the law, according to the notes of several individuals who read portions of the document.

In particular, the report states that comments Reagan made to a top adviser left White House aide Oliver North feeling as though he had an "invitation to break the law," according to the sources' notes.

There is "no credible evidence that President Reagan violated any criminal statute. Nevertheless, he set the stage for the illegal activities which ensued," the sources' notes quote the report as saying.

Theodore Olson, Reagan's lawyer, said he was forbidden by court order from commenting on the report but Walsh's conclusions "would be completely unwarranted and utterly irresponsible."

"All the evidence . . . shows that President Reagan complied with all laws and at all times directed his subordinates to do likewise," Olson said.

The scandal involved the sale of arms to Iran in exchange for the release of hostages and the diversion of some of the profits from those sales to a clandestine network run by North to funnel military supplies to Contra rebels in Nicaragua. At the time, Congress had forbidden U.S. military aid to the rebels, who were fighting the leftist government of Nicaragua.

Walsh's report was completed in August but has been sealed from public scrutiny by a special panel of federal appeals judges to give those named in it time to submit responses.

That three-judge panel announced Friday it would release the report soon, possibly with minor deletions.

For now, the report is only available to those named in it and their attorneys. Those who read it are prohibited by the court from discussing its contents publicly. A number of sources provided a description of the contents, including notes from sections of the report. The sources insisted on anonymity.

The sources said the report concludes Bush was not telling the truth when he declared publicly that he was "out of the loop" - unaware of important aspects of Iran-Contra when he was Reagan's vice president.

"Contrary to public pronouncements, Bush was fully aware of the Iran initiative," the sources' notes quote the report as saying.

The sources said the report also states there are seven unanswered questions about Bush's knowledge of the scandal that Iran-Contra prosecutor Lawrence Walsh intended to raise by questioning Bush at a trial of former Defense Secretary Caspar Weinberger. That trial, however, was scuttled last Christmas Eve when Bush pardoned Weinberger and five other Iran-Contra figures.

In an interview, Bush's lawyer, Griffin Bell, said that Bush did not mislead the American public about his role in Iran-Contra.

"Judge Walsh has seven unanswered questions, but he had seven years to look into them," Bell said Friday.

"I think Judge Walsh is a nice man and he ought to just fold his tent, which is what he's doing with this report," Bell said.

Told of the comments by Reagan's and Bush's lawyers, Walsh said he would decline commenting until after his report is issued.



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