ACCESSION NUMBER:00000 FILE ID:97031802.TXT DATE:03/18/97 TITLE:18-03-97 CONGRESSIONAL REPORT, TUESDAY, MARCH 18, 1997 TEXT: (Senate reaction to Lake withdrawal) (380) SENATORS REACT TO LAKE WITHDRAWAL Anthony Lake asked President Clinton to withdraw his nomination to head the Central Intelligence Agency (CIA) the same day the ranking Democrat on the Senate Intelligence Committee telephoned several White House officials, including Lake himself, to ask questions about news reports that raised doubts in his mind about the nomination. Senator Bob Kerrey (Democrat-Nebraska) placed the calls during the morning of March 17 after members of the Senate Intelligence Committee read a front-page story in the Wall Street Journal that claimed Lake, then President Clinton's National Security Adviser, did not know that Democratic party chairman Donald Fowler had tried to arrange a meeting with Clinton for controversial party contributor Roger Tarmaz, despite objections from an NSC staff member. Tarmaz, an oil financier, is wanted in Lebanon on decade-old embezzlement charges, the Journal said. Lake asked President Clinton to withdraw his nomination later on March 17. Kerrey and other members of the Intelligence Committee were concerned that Lake apparently did not have any established system for learning about such events. Kerrey called this situation "a potentially disqualifying mistake." Lake's withdrawal took many senators by surprise, since he was generally considered to have performed well in three days of grueling testimony before the committee. The consensus was that he had the votes for confirmation not only in the Intelligence Committee, but in the full Senate as well. "I'm surprised," Senator Orrin Hatch (Republican-Utah) said on NBC-TV's "Today" show March 18. "I think he would have made it through the process. I personally liked him, wanted to vote for him and probably in the end would have." However, said Hatch, "questions have to be asked." Acknowledging that the committee had asked "some tough questions," Hatch noted that "this is a big job that involves an awful lot of power, and power that is really unchecked in many ways." The chairman of the Intelligence Committee, Senator Richard Shelby (Republican-Alabama), denied that he had been "out to get Mr. Lake." In an interview on ABC-TV's "Good Morning America" program March 18, Shelby said "it was not personal with me." However, he added, "this was a controversial nomination from the outset." NNNN