major issue: placing limits on honoraria and outside income for members
of Congress. The thinking that emerged from the White House was that
since the President was also going to be asking Congress to significantly
increase executive and judicial salaries, it was "prudent" to leave Congress' outside income problem for another day.
As it turned out, uniformity of treatment did carry the day--although
not exactly in the manner anticipated by the public. All three branches
got a substantial pay boost. While some of Bush's ethics reforms have
been enacted into law,
53 it remains to be seen whether such reform results
in more than the entrapment of the uninitiated and a mild challenge to
the ingenuity of influence peddlers.
Memorandum to Douglas W. Kmiec from Arthur B. Culvahouse, Jr.,
Counsel to the President 1 (undated).
Ostrow, Unit Looks into Meese Wedtech Ties; Justice Department Weighs Appointment of Special Counsel, L.A. Times, May 6, 1987, at 4, col. 1 (quoting former Senator Harrison Schmitt of New Mexico, who served as vice-chairman of the
Senate ethics committee from 1977-79).
"Report of Independent Counsel" In re Edwin Meese III 20 ( July 5, 1988)
[hereinafter "In Re Meese Report"].
"Meese Denies Impropriety on Disclosure of Trust Details", Wash. Post, July 10, 1987, at A1.
6. This was true again with regard to a proposed pipeline from Iraq to Aqaba, Jordan. Wallach was hired to help arrange an insurance fund against the possibility of an Israeli attack on the pipeline. One of the plans involved part of the
revenue from the pipeline being paid to Israel. Meese's only role was to introduce Wallach and the idea to Robert McFarlane, the National Security Advisor. However, in one memorandum to Meese, Wallach intimated that part of the Israeli
funds would be paid to the Labor Party, an action that arguably constituted a
violation of the Foreign Corrupt Practices Act. Wallach was an unstoppable
memo writer, and the recipients, Meese and others, often left his memos unread.
For a variety of reasons, the pipeline was never built, and because there was no
evidence other than Wallach's gratuitous memo that an improper payment was
contemplated to be paid to the Labor Party, and more importantly, no evidence
that Meese actually knew of this proposal, "[t]he independent counsel... determined that the available admissible evidence [was] insufficient to conclude that
Mr. Meese's activities in furtherance of the pipeline project violated the Foreign
Corrupt Practices Act." In re Meese Report, supra note 3, at 49.
Mr. Wallach was tried and convicted of various federal crimes flowing out of
his relationship with Wedtech; however, these convictions were reversed and a
new trial ordered because of the perjury of a principal government witness. The
perjury was substantively unrelated to the facts as they pertain to Wallach but
did go to the veracity of the witness. See U.S. v. Wallach, 935 F. 2d 445 (2d Cir. 1991).
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: The Attorney General's Lawyer:Inside the Meese Justice Department.
Contributors: Douglas W. Kmiec - Author.
Publisher: Praeger Publishers.
Place of publication: New York.
Publication year: 1992.
Page number: 214.
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