ROANOKE TIMES

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

DATE: FRIDAY, August 19, 1994                   TAG: 9408190080
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                 LENGTH: Short


CHIEF TREASURY LAWYER QUITS

The Treasury Department's top lawyer, Jean Hanson, resigned Thursday, the second Whitewater casualty in as many days.

Hanson's decision followed that of Deputy Secretary Roger Altman, a close friend of President Clinton's who announced Wednesday he was leaving.

Lawmakers had questioned the veracity of both officials' statements at congressional hearings on the Whitewater affair two weeks ago.

Treasury Secretary Lloyd Bentsen, who accepted Hanson's resignation with regret, said he had recommended that she be succeeded as general counsel by Edward S. Knight, his executive secretary and senior adviser.

Joshua Steiner, a third Treasury official under fire in the Whitewater case, apparently will remain as Bentsen's chief of staff. But he could be reassigned, aides said.

The Whitewater controversy stems from a real estate venture involving President and Hillary Rodham Clinton and the owner of a failed Arkansas savings and loan. The immediate issue involving Hanson and Altman was when and how often Treasury officials discussed the government's investigation with White House aides.

During congressional hearings in February, Altman was the first to disclose Whitewater-related contacts between the White House and Treasury. Although he first acknowledged just one incident, he later amended his testimony to add more contacts.

Hanson was accused of failing to immediately correct Altman's testimony.



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