Office of the Deputy Attorney General
Washington, D.C. 20530

April 9, 1998

The Honorable Kenneth W. Starr
Independent Counsel
Office of the Independent Counsel
1001 Pennsylvania Avenue, NW
Suite 490-North
Washington, DC 20004

Dear Judge Starr:

As you are aware, the United States Attorney's Office for the Western District of Arkansas was recently provided with information suggesting that David Hale, who we understand is a witness in various matters under your jurisdiction, may have received cash and other gratuities from individuals seeking to discredit the President during a period when Hale was actively cooperating with your investigation. In addition to being possible criminal witness-tampering, see e.g. 18 U.S.C. Section 201(b)(3-4), (c)(2-3), 18 U.S.C. Section 1512(b), this information may be of a sort that you have an affirmative obligation to disclose to parties matters being handled by your office, and may, of course, influence your future deliberations on the various matters still pending under your jurisdiction. We are also concerned that if he was quoted accurately by the press, one of the participants in these alleged payments has made what could reasonably be interpreted as a threat against a witness. After confirming that the information warranted further investigation, we are therefore providing you with all information on this matter in our possession at this time.

It is our view that you have investigative and prosecutorial jurisdiction over these allegations, because your jurisdiction specifically encompasses obstruction and witness tampering matters arising out of your investigation, which this does. Since the matter appears to us to be within your jurisdiction, and given these unique facts, the Department lacks jurisdiction to investigate it. 28 U.S.C. Section 597(a).

In the course of your exploration of these allegations, however, should you develop any evidence of misconduct by any member of your staff, including FBI agents assigned to assist you, the Office of Professional Responsibility (OPR) is prepared to take appropriate action. In light of the Department's potential supervisory role in this matter, please inform OPR of the results of your investigation of these allegations. I am also forwarding a copy of this letter to OPR. This will help to assure the public that these allegations were properly handled by those with appropriate jurisdiction over them.

Section 597(a) permits an independent counsel to refer matters, in writing, back to the Department of Justice. There have been suggestions that your office would have a conflict of interest, or the appearance of a conflict, in looking into this matter, because of the importance of Hale to your investigation and because the payments allegedly came from funds provided by Richard Scaife. Should you believe that this matter would be better investigated by the Department of Justice, we would be prepared to accept a referral from you.

If you have any questions or concerns about this referral, please feel free to contact me.

Sincerely,
/s/
Eric H. Holder, Jr.
Deputy Attorney General

cc. Richard Rogers, Acting Counsel,
Office of Professional Responsibility