The Salina Journal from Salina, Kansas on November 18, 1981 · Page 17
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The Salina Journal from Salina, Kansas · Page 17

Salina, Kansas
Issue Date:
Wednesday, November 18, 1981
Page 17
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Page 18 The Salina Journal — Wednesday, November 18,1981 Reagan knew in September of Allen probe WASHINGTON (UP1) - National security adviser Richard Allen's acceptance of $1,000 from Japanese journalists and a subsequent federal investigation of the case have been known to President Reagan for three months, spokesman now say. Last week, Chief White House spokesman David Gergen said Reagan first learned of the "story" on Friday. Tuesday, he said that reference was to the first news accounts of the incident, and not the incident itself. Gergen, who spent the better part of an hour dealing with inquiries about Allen, said despite the investigation Allen's important status at the White House has not changed. "Dick Allen is performing the same services, the same functions that he has performed before," Gergen said. "He is going forward in his job. He remains very much in place here as national security adviser to the president." Asked if Reagan retains confidence in Allen, Gergen said, "Sure he has confidence in his national security adviser." Allen has acknowledged receiving $1,000 in cash from Japanese journalists Jan. 21 as a gift for first lady Nancy Reagan, who granted them an interview. To refuse the money, he said, would have been an insult to Japanese custom. The national security adviser says he put the money in his office safe and forgot about it. Mrs. Reagan has said he can't recall the interview and had no knowledge of the payment. Allen vacated the office eight months after the payment and left the cash in the safe, where it rested until someone else in the administration discovered it in September. Shortly thereafter, Allen was informed the government was investigating the case. Allen said Tuesday he did not believe a Washington Post report that one of Reagan's principal advisers — Counselor Edwin Meese, chief of staff James Baker, or deputy chief of staff Michael Deaver — had turned him in. For the most part Gergen declined to Stockman a believer, Reagan still believes WASHINGTON (UPI) - President Reagan said in an interview published Wednesday that he retains confidence in budget director David Stockman, but expects him to have "some problems" selling more budget cuts on Capitol Hill. In his first substantial comment on Stockman's published doubts about the administration's economic policies, Reagan said, "I still believe that he believes in our program." Reagan was interviewed by United Features Syndicate columnist Donald Lambro, whose account was published in Wednesday's editions of the Washington Post. Asked about reports that Senate Republican Leader Howard Baker believes Stockman's credibility was damaged and he may have problems selling the Reagan program, the president said, "I think he is going to have some problems of that kind." "On the other hand, I think as we continue forward with this (economic program) we're going to have the answer" on Stockman's credibility, he said. Stockman last week offered to resign, but Reagan gave him a second chance. The budget director came under fire for comments in a series of interviews with Post assistant managing editor William Greider that culminated in an article in The Atlantic magazine. Of Stockman's interviews with Greider, Reagan said, "Here were two old friends that had been meeting and debating their philosophical viewpoints for years — not in agreement with each other, but both respecting each other's opinions." Stockman expressed uncertainty about Reaganomics, including a reference to the president's tax-cut program as a "Trojan horse" designed to help the rich. Asked whether the article hurt the administration's credibility, Reagan replied, "I still feel that it shouldn't." comment on the issue, but he did try to set the record straight regarding Reagan's knowledge of the incident. Reagan learned about the matter, according to Gergen, "approximately the time the money was discovered (in September) and the matter was referred to the Justice Department." Gergen said the White House was not conducting a separate investigation. Officials did not make the matter public after learning of it because the Justice Department is forbidden to dis- close the existence of an ongoing investigation, Gergen said. That also applies to Reagan and other administration officials, he suggested. "Our description of what happened is the proper procedures were followed," Gergen said. "Period." Under law, the Justice Department has 90 days from the time it is referred a case to decide whether a special prosecutor should be appointed to handle the investigation. 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