US News

RENO WON’T RELEASE HILL MONEY MEMO

The former head of the federal funny-money task force said his bombshell memo should be released to the public, but Attorney General Janet Reno is still keeping it secret.

“It’s just a call for her. As far as I know, there’s no grand-jury or investigative reason why it can’t be disclosed. It’s just a matter of policy, of whether she wants to do it or not,” said Chuck LaBella, who now works for a private investigative firm in San Diego.

LaBella’s memo called for an independent counsel to probe the fund-raising abuses of the 1996 election — a move Reno has rejected.

His memo, obtained by the Los Angles Times, also shows that Hillary Clinton was once a focus of the funny-money probe. Investigators wanted to know whether she knew that a Democratic fund-raiser was raising money in Asia for the Democratic National Committee.

Clinton lawyer David Kendall said there was no “basis” for believing she violated any election laws.

Reno has refused to release the LaBella memo, despite a 1998 congressional subpoena of it in 1998. Yesterday, Reno received a second subpoena demanding the memo.

Reno’s spokesman said Reno is reviewing the subpoena and may reverse her policy against giving out documents that reveal confidential advice from her aides.

Hillary Clinton and Gore both ducked questions about whether the LaBella memo should be made public.

“We will not be diverted. We will not be detoured,” Mrs. Clinton said yesterday, refusing to answer questions about the LaBella memo.