July 18, 1995 - Part 1
July 18, 1995 - Part 1
(09:24:57) Opens to wide shot of Senate hearing room where crowds, press, and eventually Senators mill about - no at the beginning of this opening shot (09:35:07) Hearing begins: INVESTIGATION OF WHITEWATER DEVELOPMENT CORPORATION AND RELATED MATTERS VOLUME I TUESDAY, JULY 18, 1995 U.S. SENATE, COMMITTEE ON BANKING, HOUSING, AND URBAN AF FAIRS, SPECIAL COMMITTEE TO INVESTIGATE WHITEWATER DEVELOPMENT CORPORATION AND RELATED MATTERS, Washington, DC. The Committee met at 9.30 a.m., in room 216 of the Hart Senate Office Building, Senator Alfonse M. D'Amato (Chairman of the Committee) presiding. OPENING STATEMENT OF CHAIRMAN ALFONSE M. D'AMATO The CHAIRMAN. If the Committee will come to order. First, let me say that this has not been an easy process, but it is one that has been made much easier due to the cooperative efforts and manner in which my colleague, the Ranking Member, Senator Sarbanes, has worked with us, and we have worked in a cooperative effort to bring us to this point in terms of laying out the methodology and the scope of the hearings and the manner in which we would proceed. I would hope that we can continue in this manner. I have every confidence that we can discharge our duties in the manner that brings credit to the Senate and represents the best interests of all of our citizens. We have agreed that each side will make opening statements for a half hour, then it will revert to 10 minutes to one side, 10 minutes to the other. We anticipate that each side will take up to an hour and a half before we get to our first witness. Today the Senate Whitewater Committee begins its first round of public hearings. The Senate has authorized the Committee to ascertain the full facts about Whitewater and its many related matters. We intend to conduct fair, impartial and thorough hearings. That's what the American people want, expect and deserve. Three years ago, the American people first learned of Whitewater, the Arkansas real estate development in which Governor Bill Clinton and Mrs. Clinton owned a 50 percent interest with Mr. James McDougal, the owner of the other 50 percent of Whitewater. Mr. McDougal was also the owner of Madison Guaranty, the Arkansas savings and loan that's at the heart of Whitewater, The whole story of Whitewater is very complicated. This matter 2 stretches from the early 1980's when the Clintons and the McDougals embarked on their real estate venture to the financing of the 1990 Clinton gubernatorial campaign and on to Washington in the first 2 years of the Clinton Presidency. In authorizing the Committee's investigation by a 96 to 3 vote, the Senate has made clear that Whitewater is not a partisan issue, The entire Whitewater matter raises very serious questions that the American people want answered. The Independent Whitewater Counsel, Judge Starr, has obtained a number of guilty pleas from a number of close Clinton associates, During last summer's Whitewater hearings, the Banking Committee uncovered many previously unknown facts. We learned that certain top Clinton Administration officials were not candid and forthcoming to Congress about Whitewater. That's troubling. We also discovered that senior Treasury Department and White House officials mishandled confidential law enforcement information relating to Madison and Whitewater. That's even more troubling. With each passing month, more and more questions are being raised about Whitewater. This past Sunday The New York Times asked two central questions concerning Whitewater. First, did the Clintons pay their share of the venture's losses? Second, did Mr. Clinton, as Governor of Arkansas,. help his business partner Mr. McDougal get any favors from State officials? Based on its review of newly released documents,- The New York Times reported that McDougal "shielded the Clinton's to an extent far greater than previously reported from paying their fair share of Whitewater losses." Question: Is The New York Times right? The American people have a right to know. The Senate has authorized the Special Committee to investigate a number of areas in this round of hearings. We will examine whether White House officials interfered with the Park Police investigation in the office of Vincent Foster. The death of the number two lawyer in the Clinton White House on July 20, 1993 shocked and bewildered the nation. This marked the first time since the death of Secretary of Defense James Forrestal in 1949 that such a high-ranking U.S. official took his own life. Later this Committee will examine other areas of Whitewater. For example, we will look at whether Members of the Clinton Administration tried to obstruct criminal referrals involving Madison and Whitewater.