The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, July 22, 1995                TAG: 9507220238
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: STAFF REPORT 
DATELINE: NORFOLK                            LENGTH: Short :   36 lines

NAVY STARTS HEARING ON ESPIONAGE CHARGE OFFICER ACCUSED OF PASSING SECRETS TO SAUDIS.

A preliminary hearing for a Navy lieutenant commander accused of espionage was convened today at the Norfolk Naval Station to investigate whether the officer passed classified information to members of the Saudi Arabian military.

The hearing, the military equivalent of a grand jury investigation, has been closed to the public because of the sensitive nature of the materials being discussed.

Lt. Cmdr. Michael Schwartz, 43, a surface warfare officer, is charged with espionage, making a false official statement and violating federal regulations governing the use of classified Defense Department materials.

The offenses allegedly took place between November 1992 and September 1994 while Schwartz was assigned as a liaison officer in Riyadh, Saudi Arabia.

According to official charge sheets released by the Navy, Schwartz allegedly passed message traffic, a series of military digests, intelligence advisories and tactical intelligence summaries to the Saudis.

The documents were classified up to the ``secret'' level, not ``top secret,'' and specified that no disclosure to foreign governments was authorized.

Schwartz, who is not in custody, has been reassigned temporarily to Norfolk to await the outcome of Friday's hearing, known as an Article 32 hearing, which will determine whether he should be court-martialed. by CNB