301
         1               MR. KLAYMAN:  Are you saying he's

         2     going to respond or not?

         3               MR. BRAND:  He's not going to

         4     respond to that.

         5               MR. KLAYMAN:  Certify it.

         6               BY MR. KLAYMAN:

         7          Q    Is Mr. Terry Lenzner within the

         8     definition you gave on ABC?

         9          A    I'm not going to respond it.  I

        10     responded --

        11               MR. KLAYMAN:  Certify it.

        12               BY MR. KLAYMAN:

        13          Q    Is Mr. Lenzner within the

        14     definition that you just gave her at the

        15     deposition?

        16          A    Sure.

        17          Q    Is Mr. Palladino within the

        18     definition that you gave on ABC?

        19          A    I'm not going to answer it.

        20               MR. KLAYMAN:  Certify it.

        21               BY MR. KLAYMAN:

        22          Q    Is Mr. Palladino within the









                                                             302
         1     definition that you gave here during the

         2     deposition?

         3          A    I don't know him well enough to

         4     know, but I guess.

         5          Q    Is Mr. Terry McAuliffe within the

         6     definition that you gave on ABC?

         7          A    I'm not going to answer.

         8          Q    Is he within the definition that

         9     you just give here today?

        10          A    Sure.

        11          Q    Is Senator Chris Dodd and Don

        12     Fowler within the definition of what you gave

        13     on ABC?

        14          A    I'm not going to answer it.

        15          Q    Are they both within the definition

        16     that you gave here today?

        17          A    Yes.

        18          Q    Is Governor Ray Romer within the

        19     definition of you what gave on ABC?

        20          A    I'm not going to answer it.

        21               MR. KLAYMAN:  Certify it.

        22               BY MR. KLAYMAN:









                                                             303
         1          Q    Is he within the definition of what

         2     you gave her today?

         3          A    Yes.

         4          Q    Is Mr. David Kendall within the

         5     definition of you what gave on ABC?

         6          A    No.  I'm not going to answer it.

         7               MR. KLAYMAN:  Certify it.

         8               BY MR. KLAYMAN:

         9          Q    Is he within the definition that

        10     you gave here today?

        11          A    Yes.

        12          Q    Same question with regard to Bob

        13     Bennett?

        14          A    Yes.

        15          Q    He's within the definition that you

        16     gave here today?

        17          A    Right.

        18          Q    Is he within the definition you

        19     gave on ABC?

        20          A    I'm not going to answer it.  You

        21     know, we can go on and talk about everybody

        22     who voted for Clinton, if you want to do









                                                             304
         1     that.  We can go -- there are probably a

         2     hundred million people who fall within the

         3     definition I gave today and I'm not going to

         4     answer the question about anybody with regard

         5     to what I said on ABC.

         6               MR. KLAYMAN:  All right.  Well,

         7     let's certify that.

         8               BY MR. KLAYMAN:

         9          Q    You will stipulate to running

        10     refusal to respond with regard to what you

        11     said on ABC?

        12          A    I will stipulate -- that I am not

        13     going to reveal my sources about -- about

        14     my appearance on ABC.

        15          Q    Well, this is not question about

        16     source.

        17          A    Of course it is.

        18          Q    It's a question of whether these

        19     people fall within your definition of White

        20     House allies.

        21          A    It's a definition.  Those are the

        22     sources.  I'm not going to talk about my









                                                             305
         1     sources.  In this statement the White House

         2     allies are my sources, I'm, therefore, not

         3     going to talk about them.

         4          Q    Does Senator Robert Torcelli fall

         5     within the definition that you gave today?

         6          A    Yes.

         7          Q    John Conyers?

         8          A    Yes, a lot of people --

         9          Q    Janet Reno?

        10          A    That's a little more complicated,

        11     but, yes.

        12          Q    Louis Freeh?

        13          A    Oh, boy.  Yes.

        14          Q    But you're not going to answer any

        15     questions with regard to those people

        16     concerning the definition you used on ABC?

        17          A    I'm not going to answer any

        18     questions about who I talked to before I made

        19     that statement on ABC.

        20               MR. KLAYMAN:  Certify it.

        21               BY MR. KLAYMAN:

        22          Q    Before you went on ABC did you









                                                             306
         1     write down some notes of this issue dealing

         2     with Ellen Rometsch and gathering data?

         3          A    If I did, I might have written down

         4     her name and then thrown it out just like I

         5     do every Sunday.  I sometimes -- I bring a

         6     pad onto the set with me, but I don't always

         7     follow it.  Sometimes I do, sometimes I

         8     don't.  Depends on the course of the

         9     conversation.

        10               As you can tell in this

        11     conversation, it's a free-flowing

        12     conversation, a lot of interruptions.

        13          Q    Now, before you made your

        14     appearance on ABC that day, on February 8th,

        15     did you discuss with anyone at ABC this

        16     so-called Ellen Rometsch study?

        17          A    No.

        18          Q    After you made this statement on

        19     ABC, during any breaks or after the show, did

        20     you discuss what was meant by the Ellen

        21     Rometsch strategy with anyone there?

        22               MR. BRAND:  I'm going to object to









                                                             307
         1     that question.  I think his discussions with

         2     his fellow journalists are not any of your

         3     business.

         4               BY MR. KLAYMAN:

         5          Q    You can respond.

         6               MR. BRAND:  No, he's not going to

         7     respond because it's privileged.

         8               MR. KLAYMAN:  Certify it.

         9               THE WITNESS:  I would much rather

        10     have ABC pay for this than me.

        11               BY MR. KLAYMAN:

        12          Q    In addition to Mr. Donaldson,

        13     Mr. Will, Cokie Roberts, Bill Kristol, was

        14     there anyone that you had contact with that

        15     day at ABC?

        16               MR. BRAND:  Objection on the same

        17     grounds.

        18               BY MR. KLAYMAN:

        19          Q    You can respond.

        20               MR. BRAND:  No, he can't.

        21               MR. KLAYMAN:  Certify it.  Are you

        22     claiming that all of these people at ABC or a









                                                             308
         1     source, Mr. Brand?

         2               MR. BRAND:  I have put the on the

         3     record the nature of my objection.

         4               MR. KLAYMAN:  I don't understand

         5     it.

         6               MR. BRAND:  Well, file something in

         7     court if you don't understand it.

         8               MR. KLAYMAN:  What is the basis of

         9     your objection?

        10               MR. BRAND:  I have given the basis

        11     of my objection.

        12               MR. KLAYMAN:  You're on notice,

        13     Mr. Brand, that we will be seeking sanctions

        14     here for your having refused to answer.  It

        15     will be sought against yourself and Mr.

        16     Stephanopoulos.  You're on notice you're

        17     aware of that.

        18               MS. SHAPIRO:  I don't think you're

        19     in a position to talk about sanctions,

        20     Mr. Klayman.

        21               MR. KLAYMAN:  Are you aware -- are

        22     you on notice for that?









                                                             309
         1               MR. BRAND:  Don't threaten me,

         2     Larry.  Just go to court if you want to go to

         3     court.  I know the rules.  I know may way to

         4     the courthouse.

         5               MR. KLAYMAN:  Do you wish to change

         6     your mind in having him not answer?

         7               MR. BRAND:  No, Larry, I'm not

         8     going to be threatened by you into changing

         9     the nature of Mr. Stephanopoulos' privilege.

        10               MR. KLAYMAN:  What's the basis of

        11     that privilege?

        12               MR. BRAND:  I gave you the basis.

        13     The first amendment to the constitution and

        14     Mr. Stephanopoulos' status as a journalist.

        15     Go look it up.

        16               MR. KLAYMAN:  If he discussed this

        17     with the people that he appeared on ABC with

        18     or assisted him, you're claiming that they're

        19     a source?

        20               MR. BRAND:  You're wasting your

        21     time, Larry.

        22               MR. KLAYMAN:  Are you saying that









                                                             310
         1     anything he says is privileged under the

         2     first amendment?

         3               MR. BRAND:  I'm not saying anything

         4     else about this.

         5               MR. KLAYMAN:  Certify it.

         6               MR. BRAND:  I'd like the record to

         7     reflect that it's okay when you went to be

         8     argumentative with the attorneys that you

         9     carry on that kind of discourse, but you

        10     don't like that when someone does it to you

        11     in your deposition.

        12               MR. KLAYMAN:  I'm just making sure,

        13     Mr. Brand, that you understand the gravity of

        14     your telling him not to answer.

        15               MR. BRAND:  Larry, I have been

        16     through Motions To Compel before.  I

        17     understand the process.

        18               MR. KLAYMAN:  This is actually

        19     refusing to have your witness answer.

        20               MR. BRAND:  I understand the

        21     difference.

        22               BY MR. KLAYMAN:









                                                             311
         1          Q    Is Jack Quinn within the definition

         2     that you gave here today?

         3          A    Yes.

         4          Q    Jane Sherburne?

         5          A    Yes.

         6          Q    Webster Hubbell?

         7               MR. BRAND:  Which definition are we

         8     talking about?

         9               MR. KLAYMAN:  Of White House

        10     allies.

        11               THE WITNESS:  Probably.  I don't

        12     know his state of mind today, but my guess he

        13     is.

        14               BY MR. KLAYMAN:

        15          Q    Governor Jim Guy Tucker?

        16          A    I don't know.

        17          Q    Mack McLarty?

        18          A    Sure.

        19          Q    Bruce Lindsey?

        20          A    Yeah.

        21          Q    Now, who do you consider,

        22     Mr. Stephanopoulos, to be adversaries of the









                                                             312
         1     White House?

         2          A    I think it's pretty safe to say

         3     that you are.

         4          Q    Other than myself?

         5          A    Oh, there's any one of a number --

         6     I mean depending on the issue, most of the

         7     republicans in the senate, for example, most

         8     all of the republican -- all of the

         9     republicans in the house and senate voted

        10     against his original economic plan, but

        11     that's just from issue to issue.

        12               I think that the White House would

        13     regard -- my judgment, no inside information

        14     on this, but my judgment, I think the White

        15     House would regard Ken Starr as an adversary

        16     at this time, people who are generally not --

        17     who are generally opposed to the President's

        18     programs, opposed to what the President is

        19     tying to do.

        20               Frankly, my guess is that the White

        21     House or many people in the White House may

        22     consider me an adversary to the White House









                                                             313
         1     right now.

         2          Q    Are there people that the White

         3     House considers to be a threat to their

         4     continued existence?

         5          A    Sometimes I feel like I am.

         6          Q    Other than you, Mr. Stephanopoulos.

         7          A    I don't know.  I don't -- that's

         8     not the words I would use.

         9          Q    Would I be in that category?

        10          A    Oh, you're not a threat to their

        11     continued existence.  You're not important

        12     enough to be a threat to their continued

        13     existence.  You're just a nuisance.

        14          Q    I'm just kind of like a fly, fly on

        15     the wall?

        16          A    Your words, not mine.

        17          Q    Pest?

        18          A    Your words, not mine.

        19          Q    I'm not worthy of rising to that

        20     level?

        21          A    Not in my mind.

        22          Q    In the mind of anybody at the White









                                                             314
         1     House?

         2          A    You'd have to ask them.

         3          Q    Ken Starr, does he rise to a higher

         4     level?

         5          A    Probably, but I don't know.

         6          Q    What about John Fund of the Wall

         7     Street Journal, have you ever heard anybody

         8     discuss John Fund at the White House?

         9          A    I have discussed John Fund.  I

        10     think he's written a number of dishonest

        11     editorials, including some about me.

        12          Q    What about John Fund have you

        13     considered to be dishonest editorials?

        14          A    Oh, well, he had to take back an

        15     editorial he wrote about me about a trip I

        16     took to Greece in August of 1995.  It was

        17     so -- it was so intellectually dishonest.  It

        18     was -- and it was later shown to be that they

        19     had to write a follow-up editorial.

        20          Q    Is he considered to be an adversary

        21     of the White House?

        22          A    I just think he's a dishonest









                                                             315
         1     journalist.

         2          Q    Can you say that publicly?

         3          A    Probably would, you know, if

         4     anybody asked.

         5          Q    Based on your contact with the

         6     White House, does the White House view him as

         7     a threat?

         8          A    I don't know.  I've never talked

         9     with anybody in the White House about him.

        10          Q    Chris Matthews, have you talked to

        11     anybody at the White House about Chris

        12     Matthews recently?

        13          A    No.

        14          Q    Are you aware of anyone making

        15     negative remarks about Chris Matthews?

        16          A    No.

        17          Q    Do you know whether he's being

        18     investigated by the White House?

        19          A    I doubt he's being investigated,

        20     but I don't know anything about it.

        21          Q    Is Mr. Fund?

        22          A    Not that I know of.  You don't have









                                                             316
         1     to investigate Mr. Fund.  He -- he perjures

         2     himself on the public record.

         3          Q    How so?

         4          A    He writes dishonest things on his

         5     editorial page, then he has to take back.

         6     That's something for the Washington editorial

         7     page, to take back something, that can be

         8     perceived adversary.

         9          Q    Have you ever complained to the

        10     Wall Street Journal about Mr. Fund?

        11          A    Oh, yes.

        12          Q    When did you do that?

        13          A    Whenever the article came out.

        14          Q    You've written letters?

        15          A    Letters, phone calls, yes,

        16     absolutely.

        17          Q    Have you ever made any statements

        18     about him publicly?

        19          A    Nobody has asked about him

        20     publicly.

        21          Q    Christopher Ruddy, is he considered

        22     to be an adversary in the White House?









                                                             317
         1          A    Another deeply dishonest

         2     journalist.  Crazy guy I think actually.

         3          Q    How is he crazy?

         4          A    Well, he's pursued a crackpot

         5     conspiracy in the face of literally thousands

         6     of pages of evidence that were collected by a

         7     host of independent investigatory bodies

         8     ranging from the Park Service to the

         9     Department of the Interior to the House and

        10     Senate Committees to even Ken Starr, who has

        11     said that Christopher Ruddy's theory of what

        12     happened to Vince Foster is wrong in all

        13     respects.  Does that answer your question?

        14          Q    Is it your opinion that questioning

        15     the death and how the death of Vince Foster

        16     happened is crackpot?

        17          A    I think the -- continuing to

        18     question the circumstances -- the tragic

        19     circumstances of a suicide of a deeply

        20     troubled man in the face of a mountain of

        21     evidence to the contrary is not only

        22     dishonest, it's despicable.









                                                             318
         1               I think that to continue to

         2     propagate that theory in order to raise

         3     money, as has been done by a number of

         4     adversaries of the President, including Jerry

         5     Falwell going so far in his videos to even

         6     suggest that the President might have been

         7     complice in the death of Vince Foster, for

         8     all I know you have -- you have done letters

         9     on the same subject, but I don't know that.

        10     I just don't know.  I think to continue --

        11          Q    Are you saying I did or I didn't?

        12          A    I don't know.

        13          Q    You just assumed that I did?

        14          A    I think it's conceivable based

        15     on --

        16          Q    Because I'm a crackpot, too?

        17          A    Your words, not mine.

        18          Q    Is that your opinion?

        19          A    I didn't think of those words, but

        20     I'm not going to challenge them.

        21          Q    Because you think I'm a crackpot, I

        22     wrote about Vince Foster?









                                                             319
         1          A    I didn't say that.

         2               MR. KLAYMAN:  I will show you what

         3     I will ask the court reporter to mark as

         4     Exhibit 9.

         5                    (Stephanopoulos Deposition

         6                    Exhibit No. 9 was marked for

         7                    identification.)

         8               VIDEOGRAPHER:  This is the video

         9     operator.  We're going off the record.  The

        10     time now is approximately 4:34 p.m.

        11                    (Recess)

        12               VIDEOGRAPHER:  This is the video

        13     operator.  We're going back on the record.

        14     The time now is approximately 4:41 p.m.

        15     Mr. Klayman?

        16               BY MR. KLAYMAN:

        17          Q    I turn your attention to Exhibit 9.

        18     Exhibit 9 is a transcript from ABC "This Week

        19     With David Brinkley," dated June 30th, 1996.

        20     I turn your attention to page 14 where it

        21     states, "Right.  Well."  This is your

        22     testimony at the top.









                                                             320
         1          A    It's not testimony.  It's

         2     television commentary.

         3               MR. KLAYMAN:  Commentary.

         4                    (Discussion off the record)

         5               MR. BRAND:  What's the question?

         6               BY MR. KLAYMAN:

         7          Q    At the time that you made this

         8     appearance on "This Week With David

         9     Brinkley," you were employed by the White

        10     House, correct?

        11          A    Yes, sir.

        12          Q    What was your position?

        13          A    I already answered that.

        14          Q    You state, "Right.  Well, no,

        15     that's not exactly what he said, but here's

        16     the story as best I know it.  He was working

        17     for the campaign and the inaugural.

        18               He was referred about a job in the

        19     White House, I believe, from Christine

        20     Varney."  You're talking about Craig

        21     Livingstone, correct?

        22          A    Yes.









                                                             321
         1          Q    Who was Christine Varney?

         2          A    She was a former FTC commissioner,

         3     she's a lawyer in private practice now.  I

         4     think she also worked in -- was she cabinet

         5     secretary?  She worked in the White House.

         6          Q    How did you learn that information,

         7     that he was referred for a job by Christine

         8     Varney?

         9          A    I -- just speaking for the whole

        10     answer, to save time, I --

        11          Q    No, I want to ask that question.

        12     I'm not asking about the whole answer.

        13          A    Before I went on I received a

        14     briefing, I think, from Jack -- either Jack

        15     Quinn or Cheryl Mills, I don't remember which

        16     one, to get the information to answer the

        17     question.

        18          Q    What did Jack Quinn tell you?

        19          A    What I said --

        20               MS. SHAPIRO:  Object.  He can't

        21     testify as to what Jack Quinn told him while

        22     he was working at the White House.  It's









                                                             322
         1     attorney-client privilege.

         2               MR. KLAYMAN:  Oh, no.  That's

         3     information coming from the lawyer going to

         4     Mr. Stephanopoulos, not vice versa.  That's

         5     not attorney-client privilege.

         6               MS. SHAPIRO:  Well, he's not going

         7     to answer questions about the substance of

         8     conversations he had with the White House

         9     counsel while he was working in the White

        10     House.

        11               MR. KLAYMAN:  Are you instructing

        12     him not to answer?

        13               MS. SHAPIRO:  Yes.  If you're

        14     asking him about the substance of

        15     conversations, yes.

        16               MR. KLAYMAN:  Certify it.

        17               MR. BRAND:  May we take a second

        18     just to consult?

        19               MR. KLAYMAN:  Sure.

        20               VIDEOGRAPHER:  This is the video

        21     operator.  We're going off the record.  The

        22     time now is approximately 4:45 p.m.









                                                             323
         1                    (Recess)

         2               VIDEOGRAPHER:  This is the video

         3     operator.  We're going back on the record.

         4     The time now is approximately 4:46 p.m.

         5     Mr. Klayman?

         6               MR. KLAYMAN:  Is the objection

         7     being withdrawn?

         8               MS. SHAPIRO:  No.  If you can ask a

         9     question that doesn't elicit the substance of

        10     conversations, if you ask strictly about the

        11     facts, then he can answer.  If you ask about

        12     what was said between the two, then the

        13     privilege stands.

        14               MR. KLAYMAN:  The information going

        15     from Mr. Quinn to Mr. Stephanopoulos is not

        16     privileged.

        17               MS. SHAPIRO:  I think it may well

        18     be.

        19               MR. KLAYMAN:  Certify it.

        20               BY MR. KLAYMAN:

        21          Q    Do you know why Mr. Craig

        22     Livingstone was recommended by Christine









                                                             324
         1     Varney?

         2          A    No.

         3          Q    Where is Christine Varney today?

         4          A    I don't know.

         5          Q    What was her job at the White

         6     House?

         7          A    I already answered that.

         8          Q    Do you know when she left where she

         9     went?

        10          A    She became a Federal Trade

        11     Commissioner.

        12          Q    To the best of your knowledge, is

        13     that where she is today?

        14          A    No.

        15          Q    Did you ever talk to Ms. Varney

        16     about Craig Livingstone?

        17          A    No.

        18          Q    It then states, "I don't know if

        19     she recommended him or not.  He came to the

        20     White House and he had a meeting with Vince

        21     Foster and I believe with Cheryl Mills, an

        22     associate counsel in the White House."









                                                             325
         1               How did you learn that Craig

         2     Livingstone had had a meeting with Vince

         3     Foster?

         4          A    Everything I said in this answer

         5     came from information I received from the

         6     counsel's office.  That's what I said.

         7          Q    Why didn't you qualify that saying

         8     I understand that?  The way you said this

         9     it's as if you had personal knowledge.

        10          A    No, that's actually wrong, I mean

        11     if you could read, which I guess you can't.

        12     "Here's the story as best I know it."

        13               MR. KLAYMAN:  Certify this.

        14               THE WITNESS:  Well, you just

        15     questioned whether -- why I didn't say

        16     something that I already said and you would

        17     have known I said it if you read it as

        18     opposed to just challenging what I said.

        19               BY MR. KLAYMAN:

        20          Q    It says, "I don't know if she

        21     recommended him or not.  He came to the White

        22     House and he had a meeting with Vince









                                                             326
         1     Foster."

         2          A    "Here's the story as best I know

         3     it."

         4          Q    You talked to Vince Foster about

         5     Livingstone, didn't you, when he was alive?

         6          A    No.

         7          Q    You talked to other than Jack Quinn

         8     about Vince Foster and Livingstone, did you

         9     not?

        10          A    I don't understand that question.

        11          Q    You got the information from a

        12     source other than Quinn as well, did you not?

        13          A    I got it from counsel's office.  I

        14     did no independent investigation of my own.

        15          Q    At the time you made this

        16     statement, Vince Foster had already died,

        17     correct?

        18          A    Which is why I didn't talk to him

        19     about it, yeah.

        20          Q    It concerned you that his name was

        21     coming up in the context of Craig Livingstone

        22     at the time you made this statement, did it









                                                             327
         1     not?

         2               MR. BRAND:  Objection to that

         3     question again, Larry.  There you go again

         4     putting words in his mouth and wanting to

         5     tell him what his testimony is instead of

         6     asking --

         7               MR. KLAYMAN:  I'm allowed to ask

         8     leading questions.

         9               MR. BRAND:  -- instead of asking

        10     the question.  You can't ask leading

        11     questions on direct and that's where we are.

        12               MR. KLAYMAN:  He's an adverse

        13     witness, Stanley.

        14               MR. BRAND:  I'm not going to let

        15     you do that.

        16               MR. KLAYMAN:  Well, I can.  Certify

        17     it.  Are you telling me I can't do that?  Do

        18     you want to talk that in front of the judge?

        19               MR. BRAND:  I'd like to take this

        20     whole thing in front of the judge because I

        21     think he would be absolutely nauseated by it.

        22               MR. KLAYMAN:  Well, you will get









                                                             328
         1     your opportunity because that's where most of

         2     it's going.

         3               THE WITNESS:  Well, if most of it

         4     goes, all of it should go.

         5               MR. KLAYMAN:  Well, good.  We'll

         6     give him the whole thing.

         7               THE WITNESS:  Great.

         8               MR. KLAYMAN:  How about that?

         9     You've got my word.

        10               THE WITNESS:  That and a quarter.

        11               MR. KLAYMAN:  Certify it.

        12               BY MR. KLAYMAN:

        13          Q    It concerned you, did it not, that

        14     Livingstone was involved with Foster?

        15          A    The answer speaks for itself.

        16          Q    Did it concern you at the time?

        17          A    Not particularly.  What I was

        18     concerned about was giving a direct answer to

        19     the question, which is what I did.

        20          Q    What was Vince Foster's involvement

        21     with the FBI files?

        22          A    None that I know of.









                                                             329
         1          Q    Is that one of the reasons why he

         2     was distressed?  You previously testified he

         3     was distressed before he killed himself.

         4               MR. BRAND:  I don't think that was

         5     his testimony.

         6               BY MR. KLAYMAN:

         7          Q    You can answer.

         8          A    I have no idea.  I can't plumb

         9     Vincent's mind nor can you at this moment.

        10          Q    You had discussed the FBI files

        11     matter with Mr. Foster, had you not?

        12          A    No, I had not.

        13          Q    Before he killed himself?

        14          A    One more time.  I -- I would think

        15     that you would know the facts of this case

        16     better than I do, but Vince Foster killed

        17     himself sometime in July 1993.

        18               This case broke in June 1996.  It

        19     would be literally impossible for me to have

        20     that conversation with a dead man.

        21          Q    Before he died did you ever have a

        22     conversation with him about the use of FBI









                                                             330
         1     files?

         2          A    No.

         3          Q    Do you know of anyone who did?

         4          A    No.

         5          Q    Have you heard it said since then,

         6     that he was concerned about FBI files?

         7          A    No.

         8          Q    To the best of your knowledge, has

         9     Ken Starr ever asked questions about Vince

        10     Foster in the context of the FBI files?

        11               MR. BRAND:  Objection.

        12               BY MR. KLAYMAN:

        13          Q    You can respond.

        14               MR. BRAND:  No, he can't.

        15               MR. KLAYMAN:  Certify it.

        16               BY MR. KLAYMAN:

        17          Q    Who is Cheryl Mills?

        18          A    As I said in the testimony,

        19     associate counsel in the White House.

        20          Q    Do you know where she is today?

        21          A    I assume she's still an associate

        22     in the White House.









                                                             331
         1          Q    Still there?  Your statement here

         2     says, "He came to the White House and he had

         3     a meeting with Vince Foster and I believe

         4     with Cheryl Mills, an associate counsel in

         5     the White House."

         6               Where did you get the information

         7     that Livingstone had had a meeting with

         8     Cheryl Mills, an associate counsel of the

         9     White House?

        10          A    I already answered the question.

        11          Q    That's the same as your prior

        12     question from Quinn?

        13          A    It's the same as the question I

        14     answered 12 minutes ago.

        15               MR. KLAYMAN:  Certify it.

        16               BY MR. KLAYMAN:

        17          Q    Do you know what was discussed

        18     between Cheryl Mills and Livingstone?  I'm

        19     not asking you to tell me the substance.  Do

        20     you know what was discussed between them?

        21          A    No.

        22          Q    Did you ever ask?









                                                             332
         1          A    No.

         2          Q    Did you ever ask what Livingstone

         3     discussed with Foster?

         4          A    No.

         5          Q    Had no interest?

         6          A    No.

         7               MS. SHAPIRO:  Well, I object that

         8     you're assuming facts not in evidence.  He

         9     didn't testify that Livingstone talked with

        10     Foster.

        11               BY MR. KLAYMAN:

        12          Q    "While he was there Bill Kennedy

        13     came in as associate counsel, took over the

        14     supervision of Craig Livingstone.  Finished

        15     the hiring process, formalized the hiring

        16     process.  He was hired by the counsel's

        17     office."

        18               Did you get that information from

        19     Jack Quinn as well?

        20          A    I got it from the White House

        21     Counsel's Office.  I assume I got it from

        22     him.









                                                             333
         1          Q    Have you ever asked what the extent

         2     of Bill Kennedy's relationship was with the

         3     FBI files of anybody in the White House?

         4          A    No.

         5          Q    Did you ask anybody outside of the

         6     White House?

         7          A    No.

         8          Q    Do you know?

         9          A    No.

        10          Q    You testified that you had contact

        11     with Paul Begala at the White House, correct,

        12     since you have left the White House?

        13          A    Yes.

        14          Q    Do you know what Mr. Begala's job

        15     responsibilities currently are at the White

        16     House?

        17          A    Not precisely, but he's a political

        18     counselor.  He gives advice.

        19          Q    One of his job roles is to deal

        20     with the press?

        21          A    In part.

        22          Q    Do you know what Sidney









                                                             334
         1     Blumenthal's role at the White House is

         2     currently?

         3          A    Not exactly.

         4          Q    Have you had contact with Sidney

         5     since you left the White House in his

         6     capacity as a White House employee?

         7          A    Some.

         8               MR. KLAYMAN:  What have you had

         9     contact with him about?

        10                    (Witness conferred with

        11                    counsel)

        12               THE WITNESS:  A lot of things.

        13               BY MR. KLAYMAN:

        14          Q    Have you had contact with him over

        15     the Monica Lewinsky affair?

        16          A    That's a broad question.  I don't

        17     think I've ever discussed Monica Lewinsky

        18     with him.  Maybe once.

        19          Q    Have you ever discussed with

        20     Blumenthal or Begala whether they were

        21     conducting opposition research on adversaries

        22     of the Clinton administration?









                                                             335
         1          A    No.

         2          Q    Are you aware of whether they are?

         3          A    My guess is they are not.

         4          Q    How do you reach that conclusion?

         5          A    Well, it depends on what you

         6     consider opposition research.  The White

         7     House has said there are no private

         8     investigators.

         9               I guess it's conceivable that the

        10     people in the White House are looking in the

        11     public record of people who are saying things

        12     about the President.  I wouldn't deny that.

        13     But I don't have any independent knowledge of

        14     it.

        15          Q    You are aware that Terry Lenzner

        16     works for Williams & Connolly, correct?

        17          A    I have read that in the newspaper.

        18     I don't know that it's any -- I know that

        19     it's been in the newspaper.

        20          Q    You are aware that Jack Palladino

        21     has been alleged to have been part of an

        22     effort to uncover dirt on Clinton









                                                             336
         1     adversaries?

         2          A    I know that people have alleged it.

         3     I don't know that it's true or not.

         4          Q    Among the adversaries, do you know

         5     have any knowledge whether opposition

         6     research was conducted on Paula Jones by the

         7     White House?

         8          A    Well, I'm pretty sure it wasn't

         9     done by the White House.  Whether the

        10     President's private attorneys have looked

        11     into her background I don't know.

        12          Q    Do you have any knowledge of

        13     whether opposition research was conducted on

        14     Floyd Brown by the White House?

        15          A    No.

        16          Q    Dan Burton?

        17          A    No.

        18          Q    Newt Gingrich?

        19          A    No.

        20          Q    Ambrose Evans-Pritchard?

        21          A    No.

        22          Q    Are you aware that there came a









                                                             337
         1     point in time when the White House developed

         2     a document called "The Stream of Commerce

         3     Conspiracy."

         4          A    We are getting into the important

         5     stuff now.  Yeah, I've read about that, too.

         6          Q    Were you there at that time?

         7          A    Yeah.

         8          Q    What do you know about that?

         9          A    It's a document that shows the --

        10     how various stories work their way through

        11     the press.

        12          Q    Who prepared that document?

        13          A    I don't know.

        14          Q    Have you ever seen that document?

        15          A    Probably.  I don't remember when

        16     though.

        17          Q    Have you ever discussed that

        18     document with anyone?

        19          A    Not in real detail.

        20          Q    Who did you discuss it with not

        21     detailed?

        22          A    Could have been any one of a number









                                                             338
         1     of people.  It's been written on in a book by

         2     Howard Kurtz called "Spin Cycle."

         3          Q    Have you read that book?

         4          A    I have read pieces of it.

         5          Q    When did you last talk with

         6     Mr. Kurtz?

         7          A    I don't know.  Last few weeks

         8     sometime.

         9          Q    Did you discuss his book with him?

        10          A    No.

        11          Q    Was Hillary Rodham Clinton involved

        12     in that conspiracy commerce document?

        13          A    Not that I know of.

        14          Q    Did she ask for it to be prepared?

        15          A    I've read it through accounts in

        16     Howard's book.  I don't know -- have any

        17     independent knowledge of it.

        18          Q    Based on your reading the public

        19     reports, who was responsible for preparing

        20     that report?

        21          A    Well, why do you care what I -- you

        22     spent this whole time saying you don't care









                                                             339
         1     what I think based on reading public reports,

         2     but since you asked --

         3          Q    Please, answer the question.

         4          A    It seems like there was a lot of

         5     people thinking about it, working on it.  I

         6     think Mrs. Clinton in the public reports

         7     denied working on it.  I have no reason to

         8     disbelieve that, but I don't really remember.

         9          Q    But it did cross your desk at the

        10     White House?

        11          A    May have.  I couldn't swear to it.

        12          Q    Were you responsible for asking

        13     questions about it when the story broke, that

        14     it existed?

        15          A    No.

        16          Q    Do you know of anyone who was?

        17          A    I know Mike McCurry worked on it.

        18          Q    He worked on that report?

        19          A    He worked on making sure it wasn't

        20     released I think.  I don't really remember

        21     the timing exactly.  If you could tell me the

        22     date of it, I might have a Better idea.









                                                             340
         1               MR. KLAYMAN:  I will show you what

         2     I will ask the court reporter to mark as

         3     Exhibit 10.

         4                    (Stephanopoulos Deposition

         5                    Exhibit No. 10 was marked for

         6                    identification.)

         7               MR. GAFFNEY:  Is that a single

         8     exhibit that page?

         9               MR. KLAYMAN:  Yes, it is.

        10               MR. GAFFNEY:  Can I have a copy?

        11               MR. KLAYMAN:  Well, we don't have

        12     another copy.

        13               MR. GAFFNEY:  Well, it strikes me

        14     that it's incumbent upon you to have copies

        15     of all exhibits.

        16               MR. KLAYMAN:  Well, there's a lot

        17     of things that -- I'm asking you if you will

        18     share this and then we'll make copies.

        19               MR. GAFFNEY:  Well, I would like a

        20     copy to take with me.

        21               MR. BRAND:  I don't want a copy.

        22     You can have mine.









                                                             341
         1               MR. KLAYMAN:  We'll be happy to do

         2     that, Mr. Gaffney.

         3               MS. SHAPIRO:  Do you have an extra

         4     copy for us?  Do you have a copy for me?

         5               MR. KLAYMAN:  We'll make it for

         6     you.

         7               MS. SHAPIRO:  Before we leave?

         8               MR. KLAYMAN:  Well, I don't know

         9     that we'll get it that quickly, but I just

        10     have a few questions.

        11               BY MR. KLAYMAN:

        12          Q    Have you ever seen this document

        13     before, "The Communication Stream of

        14     Conspiracy Commerce," as edited by Joseph

        15     Farah?

        16          A    No.

        17               MR. BRAND:  I'm not paying to store

        18     that.

        19               BY MR. KLAYMAN:

        20          Q    What was that comment, Mr. Brand?

        21               If you will take an opportunity to

        22     leaf through this, Mr. Stephanopoulos.









                                                             342
         1          A    Okay.

         2          Q    Have you had a chance to look at

         3     it?  I saw your counsel just kind of fanning

         4     it.

         5          A    Well, it's 600 pages.  I mean if

         6     you want to sit here and use up the rest of

         7     the six hours for me to read it, I'm happy to

         8     do that.  It's actually 331 pages.  Excuse

         9     me.

        10          Q    It was quite a long report, wasn't

        11     it?

        12          A    Well, and if you want me to read it

        13     in detail, I will take that time and that

        14     will eat up the rest of the six hours and we

        15     can all go.

        16               MR. KLAYMAN:  Certify this.

        17               BY MR. KLAYMAN:

        18          Q    Have you actually ever seen that

        19     stream of commerce conspiracy document?

        20          A    I already answered that question.

        21               MR. KLAYMAN:  I will show you what

        22     I will ask the court reporter to mark as









                                                             343
         1     Exhibit 11.

         2                    (Stephanopoulos Deposition

         3                    Exhibit No. 11 was marked for

         4                    identification.)

         5               BY MR. KLAYMAN:

         6          Q    I'm going to show you an excerpt.

         7     It's Exhibit 11, and I will make a copy of

         8     this, too, and just ask you whether this

         9     excerpt was part of the original Stream of

        10     Commerce report that you saw when you were

        11     working at the White House?

        12          A    As I said, I wasn't sure that I saw

        13     it at the White House, but I may have.

        14          Q    Well, I'm asking you to take a look

        15     at it.  It's a very short excerpt.

        16          A    I don't remember it, but I actually

        17     kind of agree with it.

        18          Q    You do agree with it?

        19          A    In part, sure.  I mean to the

        20     extent it reaches a conclusion.  But I think

        21     there's a lot of facts here which are

        22     demonstrable.









                                                             344
         1          Q    What parts do you agree with?

         2          A    I agree with the sentence,

         3     "Whitewater is one of many issues originating

         4     with sources without credibility."

         5               I agree that there was a

         6     discernible pattern -- here it is, but this

         7     is in the past tense now -- in which Willie

         8     Horton created Floyd Brown and tabloid news

         9     organizations have forced stories into the

        10     mainstream press.

        11               I agree that stories are often

        12     planted in the British tabloids and then

        13     those stories are reported in the U.S. Press.

        14     I have no reason to dispute the notation that

        15     in February 1994 the Wall Street Journal's

        16     editorial board meet with Floyd Brown.

        17               I have no reason to dispute that

        18     after that I have no reason to dispute that

        19     after the meeting Journal devoted nearly half

        20     of its editorial page to reprinting documents

        21     it obtained from Brown in the meeting and

        22     there's a quote that follows that.









                                                             345
         1               I have no reason to dispute that

         2     Brown's "Clinton Watch" published Whitewater

         3     fax bulletin entitled "Special Counsel Robert

         4     Fiske subpoenaed Clinton administration

         5     officials and associates but he missed one,

         6     Patsy Thomasson.

         7               I have no reason to dispute that on

         8     the next day, March 10th, 1994, the Wall

         9     Street Journal ran an editorial entitled,

        10     "Who is Patsy Thomasson?"

        11               All of the documentation on page

        12     two talking about British tabloids dated

        13     January 17th, 18th, 19th, 1992, seems to me

        14     to be a direct quotation from newspapers, as

        15     is the items on January 23rd and

        16     January 24th.

        17               The documentation concerning

        18     July 26th 1992, July 17th, 1992, January 23rd

        19     1994 and January 24th 1994, all seems to be

        20     some factual quotations from newspapers.  I

        21     have no reason to dispute that.

        22               January 26th I assume is a matter









                                                             346
         1     of public record that Richard Grenier wrote

         2     an op-ed piece in the Washington Times based

         3     on the London Sunday Telegraph.

         4               January 28th, 1994, I assume it's a

         5     matter of public record that the "Inside the

         6     Beltway" section of The Washington Times gave

         7     details of the Perdue's story and quoted

         8     liberally from the Sunday Telegraph article.

         9               I mean I can go like that for the

        10     rest of the document if you would like.

        11          Q    People that you mentioned in that

        12     article, Little Brown, are they part of the

        13     adversaries of the White House that the Ellen

        14     Rometsch strategy is being employed to smear?

        15               MS. SHAPIRO:  Objection.  It

        16     assumes facts not in evidence.

        17               BY MR. KLAYMAN:

        18          Q    You can respond.

        19          A    That's not what I said.

        20          Q    You do have knowledge that the

        21     White House is intent on smearing adversaries

        22     of the Clinton administration as we speak?









                                                             347
         1          A    I didn't say that, no.

         2          Q    That's not what the Ellen Rometsch

         3     strategy means?

         4          A    I have never used those words.

         5          Q    Is at not true that Williams &

         6     Connolly and David Kendall are embarking upon

         7     a strategy to smear adversaries of the

         8     Clinton administration?

         9          A    You have to ask them.

        10          Q    Do you have any knowledge of that?

        11          A    No.

        12          Q    You have an agent that works there,

        13     don't you?

        14          A    Yes.

        15               MR. KLAYMAN:  Certify this.

        16               BY MR. KLAYMAN:

        17          Q    You're aware that they include

        18     Terry Lenzner?

        19               MR. BRAND:  Certify for what?  He

        20     answered the question.

        21               MR. KLAYMAN:  For the attitude.

        22               MR. BRAND:  Can you be sanctioned









                                                             348
         1     for attitude, Larry?

         2               MR. KLAYMAN:  I think you can.

         3               MR. BRAND:  You can?  I would like

         4     to see a case on that.  I'm unaware of it.

         5               BY MR. KLAYMAN:

         6          Q    Are you aware that they employed

         7     Terry Lenzner to do investigations against

         8     adversaries?

         9               MR. BRAND:  Asked and answered.

        10               BY MR. KLAYMAN:

        11          Q    Are you aware of that?

        12          A    We can go back in the record and

        13     pick out my answer.

        14          Q    Are you aware of that?

        15               MR. BRAND:  Asked and answered.

        16               BY MR. KLAYMAN:

        17          Q    Are you aware of an effort by the

        18     White House to comment on Susan Schmitt of

        19     The Washington Post?

        20          A    I have read about it.

        21          Q    Was that effort undertaken while

        22     you were at the White House?









                                                             349
         1          A    It actually wasn't undertaken, but

         2     it was discussed when I was at the White

         3     House.

         4          Q    Who was it discussed with?

         5          A    I know Mike McCurry was involved in

         6     discussions.  I know there were other members

         7     including maybe Mark Fabiani.

         8               I think I was at one meeting where

         9     it was discussed, but not meeting where the

        10     matter was finally adjudicated.

        11          Q    Who was at that meeting?

        12          A    I assume Mark Fabiani, maybe Chris

        13     Lehane and Mike McCurry, but I don't remember

        14     a date or anything like that.

        15          Q    Chris who?

        16          A    Lehane.

        17          Q    How is that spelled?

        18          A    L-e-h-a-n-e.

        19          Q    What specifically was discussed?

        20               MS. SHAPIRO:  Objection.  Can I

        21     consult for a second, please?

        22               VIDEOGRAPHER:  This is video









                                                             350
         1     operator. We're going off the record.  The

         2     time now is approximately 5:07 p.m.

         3                    (Discussion off the record)

         4               VIDEOGRAPHER:  This is video

         5     operator.  We're going back on the record.

         6     The time now is approximately 5:10 p.m.

         7     Mr. Klayman?

         8                    (The reporter read the record

         9                    as requested.)

        10               MR. KLAYMAN:  Read back the

        11     question.

        12               THE WITNESS:  I don't remember

        13     specifically.  If I were at the meeting, it

        14     was probably this matter, this -- the

        15     question of Sue Schmitt's reporting.

        16               As I said, I don't believe I was at

        17     the subsequent meeting, if there were indeed

        18     one, where it was finally decided what to do

        19     about this report.  I don't think I read the

        20     actual report, so I don't remember.

        21               BY MR. KLAYMAN:

        22          Q    There was a report prepared.

 

 

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