July 25, 1995 - Part 1
July 25, 1995 - Part 1
(09:29:41)Opens to shots of the Senate hearing room where media, Senators, Witnesses and audience gather and mingle (09:39:40) Hearing begins: INVESTIGATION OF WHITEWATER DEVELOPMENT CORPORATION AND RELATED MATTERS TUESDAY, JULY 25, 1995 U.S. SENATE, COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, 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. DAmato (Chairman of the Committee) presiding. OPENING COMMENTS OF CHAIRMAN ALFONSE M. DAMATO The CHAIRMAN. The Committee will come to order. I want to thank our panel and apologize for the inconvenience of having you come back and, Mr. Watkins, you in particular, for having to fly back from California. At this point, before we start, I'm going to ask that you stand for the purposes of being sworn in. Do you swear or affirm that the testimony that you are about to give is the truth, the whole truth and nothing but the truth, so help you God? OPENING COMMENTS OF SENATOR PAUL S. SARBANES Senator SARBANES. Mr. Chairman, before the panel begins, I'd like to clarify one thing on the schedule. On Thursday, at the time when you wanted to swear in this panel and proceed with the questioning, I indicated that the Members had all relied on the representation that we would break at 1 p.m. last week. You honored that and we appreciate that. But it's now my understanding, and we so informed our people, that that limitation no longer applies, and that it's our intention to do two of our panels each day this week and maybe even intensify the schedule in the following week in order to move this matter to a completion before the recess. So our people have at least been told that we would do this panel and I think there's another one. We'll go as long today as is necessary in order to complete that and repeat that process on tomorrow and the next day. Am I correct on that? The CHAIRMAN. It is my intent to spend whatever time necessary to move these proceedings along, and if that means additional hours, why, then, there will be additional hours. Hopefully, I won't have to add additional days. But, if need be, if I see that we have to do that, because I really do want to complete that aspect that 234 has been assigned to us and that has really been out there for close to a year, I will. We just have not been able, due to circumstances beyond our control, to undertake this, but now that we have, I am insistent that we complete this before we go home. There is a question, would we go beyond the schedule. It is not my intent to keep us here. I think we can do this. I also would say if we have some cooperation, because sometimes we think we have to replow the same areas over and over to make our points, if we can attempt, all of us, to withhold that question that may not be necessary, we can save time. We want all the facts. We want to be thorough and comprehensive, but I think we have to be mindful that this is a very ambitious schedule. It's a very thorough one, a very thoughtful one. So it will be my intent to get as much work done as we possibly can during this period of time. With that, Mr. Chertoff-oh, excuse me. The witnesses have opening statements? Mr. WATKINS. Yes, sir. The CHAIRMAN. Mr. Gearan, do you have an opening statement? Mr. GEARAN. Mr. Chairman, in deference to your time, I would just request that it be submitted for the record. The CHAIRMAN. Let me say this: If there's anything important, I don't want time to be a situation where we preclude any of the people who appear before us. You're going to have an opportunity to say anything that you think is important, so I'll take your statement as if read into the record in its entirety, but if there's any point you wish to make, please do so. SWORN TESTIMONY OF MARK D. GEARAN ASSISTANT TO THE PRESIDENT AND WHITE HOUSE DIRECTOR OF COMMUNICATIONS Mr. GEARAN. I appreciate that, Mr, Chairman. I will just summarize. To introduce myself, I'm Mark Gearan, I'm Assistant to the President and since June 1993, I've served as Director of Communications at the White House. During the period that you're looking at for these hearings, I answered questions to members of the press. It's my intent today to continue, to the best of my ability, to provide information to you and to Members of the Committee. Thank you very much. The CHAIRMAN. Thank you, Mr. Gearan. Ms. Mathews. SWORN TESTIMONY OF SYLVIA M. MATHEWS FORMER SPECIAL ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY Ms. MATHEWS. Very briefly, Mr, Chairman and Members of the Committee, my name is Sylvia Mathews. When Vincent Foster died on July 20, 1993, 1 was working at the White House as the Special Assistant to the President for Economic Policy. I am here at the Committee's request and would be pleased to answer any questions the Committee has about my limited involvement in the matters that evening. Thank you. 235 The CHAIRMAN. Thank you, Ms. Mathews. Mr. Watkins. SWORN TESTIMONY OF W. DAVID WATKINS FORMER ASSISTANT TO THE PRESIDENT FOR MANAGEMENT AND ADMINISTRATION Mr. WATKINS. Chairman DAmato, Senator Sarbanes and Members of the Special Senate Committee, my name is David Watkins. From January 1993 until June 1994, 1 served the Administration as Assistant to the President for Management and Administration. Subsequently, I returned to private life and currently live and work in Southern California. Despite obligations associated with my work, I have devoted several days over the past 3 weeks to assisting the Committee by voluntarily traveling to DC from California on three occasions to appear, first for a deposition, and today as a witness at this hearing into certain issues