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HOMOSEXUAL CHILD PROSTITUTION RING INVOLVING GEORGE BUSH SR.
ARCHIVE OF PUBLISHED ARTICLES OF YET ANOTHER OF MASSIVELY SUPPRESSED =
STORY INVOLVING THE FAMILY WHO IS ABOVE ALL LAWS - THE BUSHES

In the high stakes world of global politics, it is common practice to =
procure sexual favors in the hopes to gain leverage or to gain power =
through blackmail. It's done all the time. The Soviets did it. The =
Americans do it, and many other countries as well. This following is the =
bizarre and very real child sexual prostitution ring involving the =
Republican elite of Washington. And the trail leads right up to George =
H. W. Bush. Read the chilling story.

SEX AND THE CAPITAL

KARLYN BARKER, WASHINGTON POST, JULY 24, 1990: The alleged leader of =
what authorities have called the largest male prostitution operation in =
the Washington area surrendered to federal agents yesterday and pleaded =
not guilty to racketeering charges that have been filed against him and =
three alleged accomplices. Henry W. Vinson, 29, of Williamson, W.Va., a =
coal miner's son accused of setting up the homosexual escort service, =
was arraigned in U.S. District Court here yesterday afternoon after =
turning himself in to Secret Service agents . . . At a news conference =
after the arraignment, [U.S. Attorney Jay] Stephens said the =
investigation into the alleged prostitution ring "is concluded" and that =
the indictment, which was unsealed yesterday, focused on those who =
allegedly set up the ring rather than on clients who reportedly =
patronized it. Asked about earlier reports that some of those clients =
included high-level officials in the Reagan and Bush administrations, =
Stephens said the investigation had not revealed "additional conduct =
which suggests criminal conduct on behalf of other people." . . . The =
Vinson case provoked additional notice after The Washington Times =
published reports last summer suggesting that the alleged prostitution =
ring had been patronized by government officials. The Times named as =
clients several low-level government employees and Craig J. Spence, a =
Washington lobbyist and party-giver who, the paper said, took friends =
and prostitutes on late-night tours of the White House. Spence was found =
dead in a Boston hotel room last fall, and authorities ruled his death a =
suicide . . . To date, however, investigators have disclosed no evidence =
linking any high-level government official to the escort service.


-------------------------------------------------------------------------=
-------

THE ARTICLES BELOW CHRONICLE THE VERY REAL BEHAVIOR OF THE POWER ELITE =
IN AMERICA


-------------------------------------------------------------------------=
-------

  a.. "MINGO MESS BAFFLING TANGLE" The Charleston Gazette, Editorial; =
Pg. P4A, July 03, 1997.=20
  In which we hear of the appointment of a coroner who had been =
convicted of bribery and who supposedly had been married to a Henry =
Vinson, a mortician who had operated a "call boy" service utilized by =
White House officials=20

  This is the hook into a long story.=20

  We now turn to some news stories that appeared in the Washington Times =
more than a decade ago, but apart from a few having to do with Barney =
Frank, these stories have never generated much attention. We then =
recover as full a story as can be constructed from accounts in the =
press, in chronological order.=20

  b.. "'CALL-BOY' SERVICE PROSPERS USING HIGH FINANCE, HIGH TECH," Paul =
M. Rodriguez and George Archibald , The Washington Times, June 20, 1989=20
  In which we see Henry Vinson's name first surface, along with Robert =
Chambers, a funeral director, who operated a call boy network that =
laundered money through umbrella organizations in the District of =
Columbia area, Florida, Kentucky and West Virginia.=20

  c.. "POWER BROKER SERVED DRUGS, SEX AT PARTIES BUGGED FOR BLACKMAIL," =
Michael Hedges and Jerry Seper, The Washington Times, June 30, 1989=20
  In which we learn of Craig J. Spence, who arranged midnight tours of =
the White House, threw lavish parties for the famous and powerful where =
cocaine was generously served, spent $20,000 a month on male prostitutes =
from a D.C. prostitution ring, and bragged of connections to the CIA, =
whom he worried might kill him and then make it look like a suicide.


  d.. "RNC CALLS SCANDAL A 'TRAGIC SITUATION,'" George Archibald and =
Paul M. Rodriguez, The Washington Times, Friday, June 30, 1989=20
  In which we learn of the resignation of an aide to Secretary of Labor =
Elizabeth Dole, and of the reaction of Rep. Barney Frank, who is "not =
surprised" by the revelations.=20

  e.. "White House mute on 'call boy' probe," Frank J. Murray, The =
Washington Times, July 7, 1989=20
  In which we learn that President Bush followed the story, and that a =
Uniformed Division officer of the Special Service, Reginald deGueldre, =
arranged the midnight White House tours for Craig Spence and two male =
prostitutes, and was moonlighting as Spence's bodyguard.=20

  f.. "Spence was target before raid on ring," Jerry Seper, and Michael =
Hedges The Washington Times, July 10, 1989=20
  In which we learn that Craig Spence brought a 15-year old boy on at =
least one of his midnight tours of the White House, that Spence asked =
detailed questions about the Delta Force operations, that he partied =
with former U.S. Attorney Joseph diGenova and his wife, Victoria =
Toensing, and that he bragged of having blackmailed a high-ranking =
Japanese politician, Motoo Shiina.=20

  g.. "Spence ma[y] be Shiina's downfall," Edward Neilan, The Washington =
Times, July 18, 1989=20
  In which we hear of the connections between Motoo Shiina, groomed to =
be a future prime minister of Japan, and Craig Spence: how Spence had =
made more than $700,000 from Shiina's Policy Study Group, and how Spence =
had refused to pay back a loan made by Shiina for the purchase of =
Spence's house.=20

  h.. "First lady not worried about hookers' tour of White House," Paul =
Bedard, The Washington Times, July 10, 1989=20
  In which we learn that First Lady Barbara Bush was not concerned about =
the security questions raised by midnight White House tours, but did =
think it good that the Washington Post had not followed the Times' =
story.=20

  i.. "Secret Service furloughs third White House guard ," Jerry Seper, =
and Michael Hedges, The Washington Times , July 26, 1989=20
  In which we hear that, contrary to earlier White House claims, 1 a.m. =
tours were "totally out of the ordinary." We also learn that Spence =
introduced a 15-year old boy to Ted Koppel in the Nightline studio right =
before one of the tours.=20

  j.. "SEX PARTY HELD AT AUSSIE EMBASSY 'WE'RE NOT TALKING CROCODILE =
DUNDEE HERE,'" Michael Hedges and Jerry Seper, Washington Times, July =
28, 1989=20
  In which a woman who worked for one of the prostitution rings linked =
to Spence claimed she worked a party held at the Australian embassy. She =
also claimed that one of her military clients told her Spence was =
blackmailing him.=20

  k.. "SPENCE ELUSIVE, SAID TO BE EVERYWHERE BUT ISN'T," Jerry Seper and =
Michael Hedges, Washington Times, Thursday, August 3, 1989=20
  In which we learn that Spence has disappeared, but has told his =
friends not to take any account of his death at face value. We also =
discover that Ted Koppel is a longtime friend, and that the Special =
Service is not as interested in credit card fraud as they are in =
Spence's military and political connections.=20

  l.. "SPENCE ARRESTED IN N.Y., RELEASED BIZARRE INTERVIEW IS NO NIGHT =
ON THE TOWN," Jerry Seper and Michael Hedges, Washington Times; August =
9, 1989=20
  In which Craig Spence is interviewed and speaks of his own death and =
of the connections he had to powerful people who will pretend never to =
have known him.=20

  m.. Spence arrested in N.Y., released; Once-host to powerful reduced =
to begging, sleeping in park, Michael Hedges, and Jerry Seper, The =
Washington Times, August 9, 1989.=20
  More from Craig Spence's interview. Highlights include his hint that =
Donald Gregg arranged the late-night White House tours. Spence also =
speaks of more significant secrets that he plans to take to the grave.=20

  n.. "Sex sold from congressman's apartment: Frank's lover was 'call =
boy,'" Paul M. Rodriguez and George Archibald, The Washington Times , =
August 25, 1989.=20
  The only story that received much attention. A male prostitute, =
identified by the alias Greg Davis, entertained clients in the apartment =
of Rep. Barney Frank. Frank admitted having a relationship with the =
prostitute, but denied knowledge of the use of his apartment for illicit =
purposes.=20

  o.. "Sex sold from congressman's apartment: School used as base for =
sex ring," George Archibald and Paul M. Rodriguez, The Washington Times, =
August 25, 1989.=20
  In which we learn that Barney Frank's call boy also did business in a =
local public school.=20

  p.. "THE GOBIE STORY: Frank's 'call boy' tells all," George Archibald, =
and Paul M. Rodriguez, The Washington Times, September 1, 1989.=20
  In which Stephen L. Gobie, whose professional name in the underground =
prostitute trade is "Greg Davis," insists that Rep. Barney Frank knew of =
the use of his apartment as a base for prostitution. Gobie also reveals =
that one of his clients was Craig Spence.=20

  q.. "IN DEATH, SPENCE STAYED TRUE TO FORM," Michael Hedges, and Jerry =
Seper, The Washington Times, Monday, November 13, 1989.=20
  Craig Spence is found dead in a Boston hotel room. Near his body is a =
newspaper clipping that details legislative efforts to protect CIA =
agents called to testify before government bodies. Friends of Spence =
reported that he had claimed the CIA used the call boy service to =
compromise other federal intelligence officials and foreign diplomats. =
One friend quoted Spence as saying, "Casey's boys are out to get me,"=20

  r.. "SPENCE AS MUCH AN ENIGMA IN DEATH AS HE WAS IN LIFE," Jerry =
Seper, and Michael Hedges, The Washington Times, November 13, 1989.=20
  In which we learn how slow had been the federal investigation into the =
allegations swirling around Craig Spence. Spence himself had been handed =
a subpoena more than two months before his death, but was never called =
to testify. Officials of the Reagan and Bush administrations, identified =
in The Times as having used the call-boy service, had not even been =
contacted by law enforcement officials. One witness reported: "They =
asked me what I thought Spence wanted to know about the Delta project."=20

  s.. "Prostitutes corroborate Frank stories," Paul M. Rodriguez, The =
Washington Times, February 2, 1990.=20
  In which other prostitutes corroborate Gobies' claims that Rep. Barney =
Frank knew of his use of the congressman's apartment for use as a =
bordello. Gobie also claims that Craig Spence was one of his clients and =
had tried to recruit him to help "in a sordid scheme to blackmail the =
powerful politicians invited to his lavish parties." Gobie claimed that =
Mr. Spence said to him, "Do you know what kind of power you can have =
over people if you've got something on them? . . . I need boys and girls =
for people in government and high-level businessmen for my parties, for =
individuals, for whatever comes up."=20

  t.. MINGO HIRES CONTROVERSIAL DOCTOR, Maryclaire Dale, The Charleston =
Gazette; News, July 01, 1997.=20
  Returning full circle to the Mingo case, we find the newly appointed =
medical examiner of Mingo County arguing that the fact that she is a =
physician argues in favor of her having the position over the previous =
nominee, a funeral home owner. Shafer argues: "A physician has nothing =
to gain from a suicide. A mortician does. He would probably process the =
body for burial," she said. "I don't think it's [the funeral industry] a =
charity business." Ironically, Shafer's "husband" is Henry Vinson, a =
former mortician and coroner who is linked, as we saw above, to the =
child sex ring scandals. We also learn that his lawyer is the legal =
commentator Greta van Susteren.=20


-------------------------------------------------------------------------=
-------


    MINGO MESS BAFFLING TANGLE=20
    The Charleston Gazette Editorial; Pg. P4A July 03, 1997, Thursday
    PERHAPS world chess champion Garry Kasparov (or his nemesis, the =
Deep Blue computer) would have the mental capacity to keep track of the =
amazing complexities involving Mingo County public officials.=20
----------------------------------------------------------------------
          Vinson vowed that he'd never be convicted, because he said his =
"call boy" service had been utilized by officials of the Moore =
administration in Charleston and by officials of the Reagan-Bush White =
House in Washington.=20
----------------------------------------------------------------------
        =20
    Consider:=20

    State Sen. Truman Chafin, D-Mingo, was indicted on federal wiretap =
charges in his messy divorce, but was found innocent.=20

    Former Mingo Sheriff Gerald Chafin - no relation to Truman, and part =
of a rival Democratic faction - likewise was indicted on federal wiretap =
charges, supposedly stemming from an attempt to blackmail a =
"whistleblower" deputy, but likewise was found innocent.=20

    Ex-Sheriff Chafin, a mortuary owner, was appointed coroner by Mingo =
County's commissioners - but state rules require that coroners be =
physicians, so he couldn't take the post.=20

    Next the commissioners gave the job to Dr. Diane Shafer of Mingo =
County, who previously was convicted of bribery in nearby Kentucky. (She =
had been under investigation in Kentucky for suspected overbilling, but =
she married the overbilling investigator and gave him $ 42,500. They =
both were convicted of bribery, and he of bigamy, but the convictions =
were set aside. West Virginia's Board of Medicine has set August =
hearings on whether to revoke her license.)=20

    Meanwhile, Dr. Shafer may - or may not - have married a former Mingo =
coroner, Henry Vinson, who was convicted of running a male prostitution =
ring in Washington, D.C.=20

    Vinson, also a mortician, had been ousted as Mingo coroner after he =
was convicted of making harassing phone calls to a rival funeral home =
director. Then he was accused in a paternity suit. Next he moved to =
Washington, where he was charged with operating "Dream Boy," a male =
escort service.=20

    While the Washington investigation was in progress, Vinson "died" =
and his obituary was printed by newspapers around West Virginia - but =
his sister in Mingo County said the obit had been phoned to papers as a =
hoax.=20

    In 1990, Vinson vowed that he'd never be convicted, because he said =
his "call boy" service had been utilized by officials of the Moore =
administration in Charleston and by officials of the Reagan-Bush White =
House in Washington. But the next year, he pleaded guilty and got a =
five-year prison term.=20

    Now Vinson's sister says she thinks he's married to Dr. Shafer. =
Reporter Maryclaire Dale (who is white) called Dr. Shafer's office =
Monday and talked to a man who called himself "Henry Shafer." When she =
asked if his name is Henry Vinson, he screamed: "Would you like to come =
and have sex with me, you [racial obscenity]?" Is this another count of =
phone harassment?=20

    Well, that's just this week's developments in murky Mingo, where =
public officials have always been bizarre.=20

    Matewan Police Chief Sid Hatfield led strikers in a historic =
shootout with Baldwin-Felts detectives; Sheriff Johnie Owens "sold" his =
elected office to another politician for $ 100,000; Kermit Fire Chief =
"Wig" Preece and his relatives sold drugs from the firehouse - that's =
public life in the Deep South coal county.=20

    Mingo residents must wonder if they're living in a zoo.


-------------------------------------------------------------------------=
-------

  'CALL-BOY' SERVICE PROSPERS USING HIGH FINANCE, HIGH TECH
      Paul M. Rodriguez and George Archibald The Washington Times; Final =
Section: NATION Page: A7 Thursday, June 29, 1989

      Elaborate telephone switching equipment and out-of-town check =
cashing and credit card processing centers make it possible for =
Washington's homosexual escort services to launder hundreds of thousands =
of dollars annually from clients.=20

      Professional Services Inc., the dry name that appears on =
customers' American Express, Visa and MasterCard bills when they charge =
their sexual liaisons with male prostitutes, is a cover for half a dozen =
different call services linked in a gigantic regional sex-for-hire =
network, according to an investigation by The Washington Times.=20

      The upscale Northwest Washington residence that served as a =
switchboard center for dispatching male prostitutes to local hotels, =
clients' homes and other meeting places was raided Feb. 28 by federal =
and local police authorities investigating interstate prostitution and =
credit card fraud.=20

      The escort firm has relocated and - using a 50-line Merlin =
computerized call-forwarding system - is still in operation while local =
authorities try to track down individual call boys with information =
gathered from seized documents.=20

      In want ads placed in local tabloid newspapers and Yellow Pages =
telephone directories, Professional Services hawks its wares under such =
names as Man-to-Man, Dream Boys, Ultimate First Class, Metrodate and =
Jovan.=20

      In its own investigation of the male escort service raided in =
February and again May 18, The Times has obtained extensive financial =
records that reveal how the homosexual network handled its credit card =
and check cashing needs by using legitimate umbrella organizations in =
the Washington area, Florida, Kentucky and West Virginia.=20

      Members of the law enforcement team investigating Professional =
Services, which includes the Secret Service and the Metropolitan Police, =
said a special federal grand jury is expected to hand up indictments =
based on violations of federal credit card statutes, mail fraud laws and =
banking regulations that bar illegal activities, such as prostitution.=20

      Operators of the male escort service under investigation denied in =
dozens of interviews that they have broken any federal laws.=20

      But credit card vouchers obtained by The Times reveal many =
instances of apparent double billing and what appear to be forged =
signatures.=20

      As one law enforcement official explained, customers of such =
services are highly unlikely to call up credit card companies to =
complain that they had only one $150 session - not two - with one of =
Professional Services' prostitutes.=20

      Call boys interviewed by The Times admitted that in the course of =
their work as "escorts" they regularly engaged in sex for hire with male =
clients.=20


     After paying "membership" fees in the $150 range, clients paid =
additional amounts for so-called "referrals" billed on an hourly basis. =
The vouchers reflected fees ranging from $60 to $1,100 for individual =
referrals. Most charges were in the $150 to $225 range.=20
      Clients and prostitutes said the amounts charged depend on the =
number of escorts procured ( some clients hire several for big parties), =
the length of time prostitute services are used and the type of sexual =
service provided.=20

      Robert Chambers, who handled Professional Services' credit card =
processing, is a 35-year-old funeral director whose family owns and =
operates the Chambers Funeral Homes throughout the Washington area.=20

      Mr. Chambers used his family's funeral business to set up =
Professional Services' "sub-merchant" account with a Sovran Bank branch =
in Silver Spring. Credit card charges and checks were deposited in the =
Sovran account, while cash paid for escort services usually was =
deposited at other area banks, including Riggs, National Bank of =
Washington and First American.=20

      These accounts were usually in the names of the escort operators - =
principally Henry W. Vinson, a 28-year-old owner-dispatcher for the =
services, and Jimmy Mako, 27, who pleaded guilty to a misdemeanor drug =
charge stemming from the February police raid on the switchboard =
headquarters, 6004 34th Place NW.=20

      Sovran canceled Professional Services' account after the =
comptroller of Chambers Funeral Home discovered the secret sex-for-hire =
card processing scheme. Mr. Chambers now funnels charge slips through =
another licensed credit card processing company, Executive Services, in =
Suitland.=20

      Part of the regional escort network is directly linked to =
employees at dozens of hotels in the area, those interviewed said. =
Besides helping to arrange "special" rooms for clients, these hotel =
employees also help to expedite guest requests for male and female sex.=20

      There also are special phone banks located in each of the hotels - =
some public pay phones and other private lines - reserved for the =
homosexual network. Telephone pagers are used extensively to send call =
boys from one liaison to another.=20

      Operators of the homosexual escort ring confirmed that female =
prostitutes were occasionally provided if clients requested such =
services.=20

      Among hundreds of charge vouchers obtained by The Times were those =
of about a half-dozen women who availed themselves of the male escorts.=20

      Gay clubs throughout the Washington area are used by call boys to =
pick up clients. Many call boys also work at these clubs - some of them =
"strip" joints - and typically are recruited there by the escort =
services.=20

      Bars and clubs catering to a homosexual clientele include The =
Chesapeake House, Brass Rail, Knob Hill, The Follies, Lost and Found, =
Tracks, and La Cage Aux Follies.=20

      Photo, This house, at 6004 34th Place NW in Washington, was the =
switchboard center for a male-prostitution ring until it was raided Feb. =
28., By Gary M. Hopkins/The Washington Times
    =20


=20


-------------------------------------------------------------------------=
-------

Not for commercial use. Solely to be used for the educational purposes =
of research and open discussion.=20

  POWER BROKER SERVED DRUGS, SEX AT PARTIES BUGGED FOR BLACKMAIL=20
      Michael Hedges and Jerry Seper The Washington Times; Final =
Section: A Page: A1 Friday, June 30, 1989

      Craig J. Spence, an enigmatic figure who threw glittery parties =
for key officials of the Reagan and Bush administrations, media stars =
and top military officers, bugged the gatherings to compromise guests, =
provided cocaine, blackmailed some associates and spent up to $20,000 a =
month on male prostitutes, according to friends, acquaintances and =
records.=20

       =20
--------------------------------------------------------------------
            How a man whom even his closest friends describe as a =
flawed, malevolent personality managed to court Washington's biggest =
names is a quintessential Washington story.=20
--------------------------------------------------------------------
          =20
      The 48-year-old D.C. power broker has been linked to a homosexual =
prostitution ring currently under investigation by the U.S. Attorney's =
Office. Its clients included several top government and business =
officials from Washington and abroad.=20

      Among the clients identified in hundreds of credit-card vouchers =
obtained by The Washington Times - and identified by male prostitutes =
and escort operators - are government officials, locally based U.S. =
military officers, businessmen, lawyers, bankers, congressional aides, =
media representatives and other professionals.=20

      Mr. Spence's influence appeared unlimited, aptly demonstrated by =
his ability to arrange midnight tours of the White House, according to =
three persons who said they took part in those tours.=20

      "It was a show-the-flag time for Craig Spence," said one person =
who went on a July 3, 1988, tour that included two male prostitutes. "He =
just wanted everyone to know just how damned powerful he was," said the =
person. "And when we were strolling through the White House at 1 o'clock =
in the morning, we were believers."=20

      One man who was on the tour but asked not to be named for fear it =
would damage his business said it was cleared by a uniformed Secret =
Service guard whom the man had seen attending Mr. Spence's parties as a =
bodyguard.=20

      "For once in his life, Craig was doing something nice. We just =
thought, neat, we get a free midnight tour of the White House," the man =
said. Another person on the tour said the group walked through all the =
public areas of the White House and "even took pictures of ourselves in =
the barber's chair."=20

      After arriving in Washington in the late 1970s, Mr. Spence was =
hosting parties during the early Reagan years attended by, among others, =
journalists Eric Sevareid, Ted Koppel and William Safire; former CIA =
Director William Casey; the late John Mitchell, attorney general in the =
Nixon administration; conservative activist Phyllis Schlafly; Ambassador =
James Lilley; and Gen. Alfred M. Gray, the commandant of the Marine =
Corps.=20

      Arnaud de Borchgrave, editor-in-chief of The Times, went to dinner =
once at Mr. Spence's home to honor Mr. Lilley.=20

      Efforts to reach Mr. Spence in the past week were unsuccessful. He =
contacted The Washington Times yesterday in response to a telefaxed =
message but hung up when queried about his activities.=20

      According to many current and former friends, Mr. Spence was a =
dangerous friend to cultivate. Several former associates said his house =
on Wyoming Avenue was bugged and had a secret two-way mirror, and that =
he attempted to ensnare visitors into compromising sexual encounters =
that he could then use as leverage.=20

      One man described having a limousine sent to his home by Mr. =
Spence and being brought to a gathering at which several young men tried =
to become friendly with him. "I didn't bite; it's not my inclination," =
the man said. "But he used his homosexual network for all it was worth." =


      The man, a business associate of Mr. Spence who was on the White =
House tour, said: "He was blackmailing people. He was taping people and =
blackmailing them."=20

      One former friend said he saw an 8-foot-long, two-way mirror =
overlooking the library of Mr. Spence's home which, he said, he was =
later told was used for "spying on guests."=20

      Georgetown University law professor Richard Gordon said he was a =
close friend of Mr. Spence's until his "behavior began deteriorating =
quite markedly."=20

      Mr. Gordon recalled being at a gathering at Mr. Spence's home and =
having a conversation with veteran NBC and CBS correspondent Liz Trotta. =


      "We were sitting in a corner, talking about our mutual concern =
about Craig's physical condition. He came down later and said he had =
been listening to us and didn't appreciate it at all," Mr. Gordon said.=20

      Ms. Trotta, contacted in New York City, yesterday confirmed Mr. =
Gordon's comments and said it was "one in a series of incidents" in =
which she began to question Mr. Spence's emotional and physical =
stability.=20

      "He was fragmenting right before our eyes," she said. "I was very =
concerned about him."=20

      One former Reagan administration official who worked at the U.S. =
Information Agency and is an open homosexual said he went to private =
parties at Mr. Spence's home and saw a great deal of recording and =
taping equipment.=20

      "It was my clear impression that the house was bugged," he said. =
Another man, an Air Force sergeant who worked for Mr. Spence as a =
bodyguard, said: "The house was definitely bugged. I can't say what he =
was doing with the information. I don't know that. But he was recording =
what occurred there."=20

      Several others confirmed that Mr. Spence had bragged on several =
occasions that he had his house bugged and that conversations between =
guests often had been overheard. They said Mr. Spence often would come =
down late to parties he hosted and told close associates that he had =
been listening to what was being said about him.=20

      Several people also said Mr. Spence boasted about getting control =
of the million-dollar home on Wyoming Avenue by blackmailing clients in =
Japan.=20

      William Harbin, a former U.S. Foreign Service official who worked =
for Mr. Spence in the mid-1980s, said: "He pretty much blackmailed a =
Japanese client. He had represented this firm in Washington, the Policy =
Study Group.=20

      "The Japanese put up the money for Spence to buy a big house on =
Wyoming Avenue," Mr. Harbin said. "I heard he later had a quarrel with =
this Japanese because he was really using this house to advance his own =
purposes, not for the Japanese. But he threatened to expose that they =
had transferred the money illegally, so it made the Japanese back down." =


      Another longtime friend confirmed that Mr. Spence bragged about =
the Wyoming Avenue deal, saying he had beaten "a very rich, old-line =
Japanese family."=20

      Secret Service spokesman Bob Snow, when asked yesterday for =
records about Mr. Spence's visits to the White House, said only the =
White House counsel could authorize release of the material.=20

      C. Boyden Gray, the White House counsel, said he did not know why =
Mr. Snow referred The Times to him, adding that he was unaware that his =
office was required to release such information. "I just don't know =
anything about that," Mr. Gray said. "But maybe there's something I =
don't know about." Federal law enforcement authorities, including the =
Secret Service, involved in the probe of the homosexual prostitution =
ring have told prostitutes and their clients that a grand jury will =
deliberate over evidence gathered in the ongoing investigation =
throughout the summer.=20

      Hundreds of credit-card vouchers, drawn on both corporate and =
personal accounts and made payable to the Washington-based escort =
service operated by the homosexual ring, have been examined by The =
Washington Times.=20

      Mr. Spence, a former ABC-TV correspondent who covered the war in =
Vietnam, was one of the biggest spending clients of the homosexual =
prostitution network, according to credit-card vouchers obtained by The =
Times. For example, on Oct. 5, 1988, he made four separate payments =
totaling $1,525 with his American Express card for male escorts from =
Professional Services Inc.=20

      On. Oct. 8, he paid $600 for male escorts, and another $600 =
payment Oct. 20, the documents show. There were some months when Mr. =
Spence spent as much as $20,000 for male escorts hired to provide him =
sexual services, according to documents and interviews with prostitutes =
who served him.=20

      Many of Mr. Spence's guests soured on his hospitality when his =
darker behavior emerged. A case in point is his relationship with former =
U.S. Attorney Joseph diGenova.=20

      According to Mr. diGenova, he attended a few of Mr. Spence's =
parties both as U.S. attorney and after he left the government to enter =
private practice. He eventually traveled to Japan last December on a =
business trip with Mr. Spence and Wayne Bishop, chairman of the =
Washington law firm of Bishop, Cook, Purcell & Reynolds, where Mr. =
diGenova works.=20


     "When I got back from Japan, some anonymous person suggested that =
he (Mr. Spence) might be using cocaine. Well, of course my antennae went =
up right away and I checked those rumors out . . . and found much to my =
surprise that people suspected the worst," Mr. diGenova said.=20
      At that point, Mr. diGenova said, he severed his relationship with =
Mr. Spence. "When you compared it to his other eccentric behavior, it =
made sense. But I had no evidence whatsoever," he said.=20

      Mr. diGenova said he never took his concern that Mr. Spence might =
be using drugs to authorities.=20

      Others interviewed said they witnessed drug use and other crimes =
at parties thrown by Mr. Spence but also never shared their observations =
with law enforcement officials.=20

      The saga of Mr. Spence, described by one friend as "Washington's =
Jay Gatsby," began unraveling when federal and D.C. police raided a male =
prostitution ring in Northwest Washington and discovered credit-card =
vouchers signed by Mr. Spence and others.=20

      But for several years - even as publications such as The New York =
Times were describing Mr. Spence as Washington's ultimate power broker =
-acquaintences noticed bizarre behavior.=20

      Mr. Spence was generous with cocaine at his parties, according to =
several people who said they witnessed drug use at the exclusive =
Kalorama house.=20

      "I know he was a coke freak," said the business associate who was =
on the White House tour. "A lot of people saw it. His behavior spoke for =
itself."=20

      Several friends said Mr. Spence bragged that U.S. military =
personnel, for whom he had built a gymnasium in El Salvador, had =
smuggled cocaine back to him when they returned to the United States.=20

      "I heard he was selling drugs, or smuggling drugs into the country =
from El Salvador," said a friend who worked closely with Mr. Spence. "He =
went down there two or three times or maybe more. He was trying to =
interest a Japanese firm with buying a fishery in El Salvador.=20

      "I found out the United Nations had rejected a similar scheme; =
they found if you put more boats in there the fish would just get =
smaller. So I told him that it was no good," the former associate said.=20

      U.S. Drug Enforcement Administration officials said this week they =
had no evidence of any such operation.=20

      Others said the drugs came from a more mundane source - midlevel =
dealers in Northwest Washington.=20

      How a man whom even his closest friends describe as a flawed, =
malevolent personality managed to court Washington's biggest names is a =
quintessential Washington story.=20

      Mr. Spence arrived in Washington in the late 1970s. Even intimate =
friends said his depiction of his background was as shifting as his =
guest list. What can be confirmed is that he attended Syracuse =
University and worked as a journalist with ABC in Southeast Asia during =
the Vietnam War.=20

      One former friend, who became acquainted with Mr. Spence in Tokyo, =
said that the latter had a "falling out" with ABC News because of his =
political views. The former friend said Mr. Spence was a hard-line =
conservative and was opposed to what he described as "the liberal =
treatment of the news by the network."=20

      Mr. Spence made good contacts in Japan and among Chinese =
expatriates, often bragging of his close association with former =
Japanese Prime Minister Yasuhiro Nakasone and appearing in public with a =
Chinese businessman who once served as an unofficial representative of =
Communist China in Washington, sources said.=20

      The businessman said this week that he did not know exactly what =
work Mr. Spence did, but that he often bragged about his contacts with =
Japanese businessmen and political leaders, particularly Mr. Nakasone.=20

      He described Mr. Spence as "strange," saying that he often boasted =
that he was working for the CIA and on one occasion said he was going to =
disappear for awhile "because he had an important CIA assignment."=20

      According to the businessman, Mr. Spence told him that the CIA =
might "doublecross him," however, and kill him instead "and then to make =
it look like a suicide."=20

      The businessman also said he attended a birthday bash for Roy Cohn =
at Mr. Spence's house. He said Mr. Casey was at the party. "One time he =
stormed into another party with a big, white hat and an entourage of =
security guards," the businessman said. "It was all rather bizarre."=20

      Mr. Spence's trump card in courting the rich and famous apparently =
was his access to high-ranking orientals at a moment when Japan was =
flowering as an economic giant and relations with China were thawing.=20

      "Craig had an interest in the Japanese economy," said Mr. Gordon. =
"He was very interested in breaking through the bureaucratic level and =
getting people to come to seminars.=20

      "He developed a kind of genuine and effective influence among =
important doers and thinkers in Washington and from New York," Mr. =
Gordon said. "I met some interesting senators and representatives at his =
parties."=20

      He was doing extensive business with Japan in the early 1980s, =
some of which former Reagan administration officials said appeared to =
violate trade laws.=20

      Mr. Gordon said he warned Mr. Spence of the need to be registered =
as a lobbyist, and documents show that in January 1985 he became a =
registered agent lobbying for Japanese businesses.=20

      A January 1982 New York Times profile of Mr. Spence was headlined =
"Have Names, Will Open Right Doors." The article quoted a Washington =
Post columnist in 1980 saying of Mr. Spence: "Not since Ethel(D-) =
Kennedy used to give her famous Hickory Hill seminars for great minds of =
our times during the days of Camelot has anyone staged seminars =
successfully on a continuing social basis in Washington. That's what =
Craig Spence has been doing."=20

      Mr. Spence was described in the New York Times as "something of a =
mystery man who dresses in Edwardian dandy style, a former television =
correspondent who now wears many hats, including international business =
consultant, party host, registered foreign agent and something called =
'research journalist.' "=20

      Those who knew Mr. Spence best were astonished by his ability to =
court the rich and powerful.=20

      "He conned people into going to parties - big people, Cabinet =
members and personalities and so forth," said Mr. Harbin, who wrote =
research papers that Mr. Spence peddled to Japanese clients.=20

      "Everybody likes to go to a free party around here. He'd have a =
photographer there, get his photo taken with a great man, and use that," =
he said.=20

      "He was quite secretive, but from what I could see these things =
had little or no substance," Mr. Harbin said. "Usually a grain of truth, =
but he'd build a pile of lies on top of it. Usually he'd start with a =
photograph of himself with some guy and build a lie around it that he =
was his top adviser. Nakasone was one."=20

      Mr. Spence also bragged about social companions, telling friends =
that he had hosted Mr. Cohn, Rock Hudson and others at his Wyoming =
Avenue home.=20

      The former Reagan administration aide said he decided to sever a =
friendship with Mr. Spence when he witnessed him trying to force his =
off-duty military bodyguards into homosexual acts.=20

      "I'm openly gay myself," he said. "Most gays find that type of =
behavior reprehensible."=20

      Several people who attended Mr. Spence's parties remarked at what =
one guest called "his personal honor guard." "I don't know where he got =
them, but he liked to surround himself with tall, handsome, stalwart =
young men. He liked to surround himself with decorations," one frequent =
guest said.=20

      Mr. Spence has been living on Massachusetts Avenue in recent =
months, friends said. His legitimate business contacts have "one by one =
dropped away," said one close friend.=20

      He has told a number of his friends that he plans to leave the =
country by Aug. 15. Mr. Spence also has said his health is failing.=20

      "I can unhappily confirm that. He has been in ill health. I am not =
truly aware of what it is that is wrong with him," said Mr. Gordon.=20

      =20


-------------------------------------------------------------------------=
-

      * Paul M. Rodriguez contributed to this report.=20


-------------------------------------------------------------------------=
-

      Photo, Power broker Craig J. Spence demonstrated his influence by =
providing late night strolls through the White House for groups of =
selected friends., By Richard Kozak/The Washington Times
    =20




-------------------------------------------------------------------------=
-------
Not for commercial use. Solely to be used for the educational purposes =
of research and open discussion.=20
  RNC CALLS SCANDAL A 'TRAGIC SITUATION'
      George Archibald and Paul M. Rodriguez The Washington Times; Final =
Section: A Page: A1 Friday, June 30, 1989

      Republican and conservative political leaders reacted cautiously =
yesterday to a report in The Washington Times that key Reagan and Bush =
administration officials are ensnared in a federal probe of homosexual =
prostitution.=20

       =20
--------------------------------------------------------------------
            Rep. Barney Frank, Massachusetts Democrat and a =
self-proclaimed homosexual who several weeks ago threatened to reveal a =
list of Republican homosexuals in Congress, said he was "not surprised" =
by the revelations.=20
--------------------------------------------------------------------
          =20
      "There's no reason for cleaning anybody out (of office because =
they used homosexual prostitutes)," said Leslie Goodman, a spokeswoman =
for Republican National Committee Chairman Lee Atwater.=20

      "It's a personal situation. It's a tragic situation if people have =
to resort to prostitutes," the GOP spokeswoman said. "But there's no =
standard for people in the federal government that's different than for =
the average Joe on the street."=20

      However, a top Labor Department adviser to Secretary Elizabeth =
Dole resigned yesterday after acknowledging to The Times that he had =
procured male prostitutes and was subjected to blackmail threats by one =
of the call boys.=20

      In a letter announcing his resignation as Mrs. Dole's political =
personnel liaison to the White House, Paul R. Balach wrote: "I hereby =
resign my position this date due to the public disclosure of activities =
concerning my personal life."=20

      Mr. Balach said in an interview late yesterday he was told by the =
department's solicitor, Robert Davis, he must either resign or be fired. =
He said he was not allowed to talk to Mrs. Dole about the matter.=20

      "They said they reached this decision with a great deal of pain =
because I was a valued employee. But they thought that the cloud =
surrounding me would not allow me to continue to hold a political job in =
the administration," he said.=20

      "I think they are protecting Elizabeth, and frankly I would do the =
same thing," Mr. Balach said. "I live paycheck to paycheck. They =
promised me that they would try and find me another position somewhere =
in the government, but I just don't know. . . . Somebody else is going =
to clean out my office. They didn't want me to come back into the =
office."=20

      According to documents obtained by The Times, the homosexual =
prostitution ring includes not only Reagan and Bush administration =
officials but military officers, congressional aides and U.S. and =
foreign businessmen with close social ties to Washington's political =
elite.=20

      U.S. Attorney Jay B. Stephens confirmed in a statement yesterday =
that his office "has been investigating allegations involving credit =
card fraud" following a Feb. 28 raid on the call boy ring's Northwest =
Washington headquarters. But Mr. Stephens refused to discuss the matter =
further.=20

      A Justice Department spokesman said the investigation was being =
led by the Secret Service.=20

      But the spokesman denied that the government was investigating the =
possibility that homosexuals who held senior posts during the Reagan =
administration were compromised by blackmail or by Soviet agents who may =
have used young male prostitutes for espionage purposes.=20

      The White House distanced itself yesterday from reports that =
top-level Republican officeholders and Pentagon brass were involved in =
the homosexual prostitution ring.=20


     "I don't know anything about it," said White House spokesman Marlin =
Fitzwater. "Nothing at all."=20
      At the Pentagon, spokesman Pete Williams, commenting on The Times' =
article, said he was unaware of any Defense Department investigation =
into credit card fraud or homosexual conduct by members of the military. =


      Democratic National Committee officials declined to comment on GOP =
involvement with the call boy ring.=20

      But Rep. Barney Frank, Massachusetts Democrat and a =
self-proclaimed homosexual who several weeks ago threatened to reveal a =
list of Republican homosexuals in Congress, said he was "not surprised" =
by the revelations.=20

      Because almost all Republican homosexuals are "in the closet," Mr. =
Frank said, "there's an impression that there aren't any Republicans. . =
. . This is the proof of the prejudice in our community."=20

      Bias that forces homosexuals to maintain secrecy about their =
sexual orientation is an "obvious waste of human talent," he said. =
"People ought to be judged by their work, not whether they are gay. The =
whole blackmail issue wouldn't exist if we didn't have this fear of =
homosexuals."=20

      The National Gay & Lesbian Task Force and the Human Rights =
Campaign Fund, a gay and lesbian civil rights group, echoed Mr. Frank's =
remarks.=20

      "The Washington Times story is a rank attempt to sensationalize a =
fact that should come as no surprise to anybody: that there are gay =
people in the Republican Party and in this Republican administration," =
the National Gay & Lesbian Task Force said in a statement. "The story =
The Times does not tell is the story of the repression and fear that =
still mars the lives of gay individuals in politics."=20

      The group also challenged the possibility raised in The Times' =
story of threats to national security from the blackmail of homosexuals =
in sensitive government positions, saying there has never been "even one =
single documented case of gay-related espionage" in the past 40 years.=20

      In Republican political circles, there is a clear division between =
those who want to clean out homosexuals from government and "more =
pragmatic types" who are tolerant of their private behavior but hate any =
kind of scandal that will hurt the party, said one close adviser to Mr. =
Atwater.=20

      "The pragmatists want it (disclosures of the homosexual =
prostitution ring) to go away. They hope there's no more to come," the =
adviser said.=20

      "I had no idea such stuff was going on," said Morton Blackwell, =
president of The Leadership Institute, which gives political training to =
young Republicans.=20

      "I think it is time to sit down and write a paper for young =
conservatives who are washed over by all of this propaganda saying some =
people are naturally, genetically irresistably inclined to this kind of =
(homosexual) behavior," Mr. Blackwell said.=20

      "We Republicans stand for traditional values and cannot continue =
to stand if we fall significantly away from them," he said.=20

      "If this (The Times' disclosures) proves to be true, then it would =
explain a certain resistance to pro-family policies on the part of the =
Reagan administration which were popular and in the interests of the =
administration," said Paul Weyrich, president of Coalitions for America. =


      "You can understand an administration's reluctance to get involved =
in something if they're going to have to pay dearly to be on the =
unpopular side of an issue," he said.=20

      "But it is hard to understand why they would resist certain policy =
decisions which were popular with the public and which were in the =
national interest: for example, treating AIDS as a public health issue =
and requiring testing, which was vehemently opposed at the policy level =
of the administration,."
    =20


Not for commercial use. Solely to be used for the educational purposes =
of research and open discussion.

  White House mute on 'call boy' probe=20
      Frank J. Murray The Washington Times; Part A; Pg. A1
      July 7, 1989, Friday, Final Edition

      Administration officials continued yesterday to stonewall =
reporters on the growing federal "call boy" investigation, apparently =
hoping the scandal will fade before President Bush is asked his view of =
a late-night White House tour that reportedly included two male =
prostitutes.=20

       =20
--------------------------------------------------------------------
            "Mr. Bush knows about the story. Yes he does. He's aware of =
the story," said one White House source who, like virtually all the =
others, insisted on anonymity.=20
--------------------------------------------------------------------
          =20
      Treasury Secretary Nicholas Brady, who heads the Secret Service, =
reluctantly conceded yesterday at the White House that the agency is =
looking into the July 3, 1988, tour - one of several arranged by a =
Secret Service officer for lobbyist Craig J. Spence.=20

      Meanwhile, White House sources confirmed that President Bush has =
followed the stories of the late-night visit and Mr. Spence's links to a =
homosexual prostitution ring under investigation by federal authorities =
since they were disclosed June 29 in The Washington Times. But top =
officials won't discuss the stories' substance, reportedly even among =
themselves.=20

      "Mr. Bush knows about the story. Yes he does. He's aware of the =
story," said one White House source who, like virtually all the others, =
insisted on anonymity.=20

      Press officers have rebuffed repeated requests to obtain Mr. =
Bush's reaction and decline to discuss investigations or fallout from =
the disclosures.=20

      "I don't have anything on that," said Deputy Press Secretary B. =
Jay Cooper, the latest member of the press office to respond.=20

      "There's no gain in talking about it," explained an official who =
declined to be quoted by name. "It only makes the story grow and helps =
keep it alive."=20

      The president has not had "serious discussion" about the reports =
even with his most senior aides, including Chief of Staff John Sununu, =
according to another source.=20

      Reports on the matter have been included in the Daily Press =
Summary, a comprehensive half-inch-thick digest of print and broadcast =
media stories and editorials prepared by a division of the White House =
press office for the president and aides throughout the complex.=20

      Because the summary is an internal document, officials would not =
disclose its reports on the news stories. One official said, "I'm sure =
that the story was summarized, but the president also reads The =
Washington Times and The Washington Post."=20

      Mr. Brady, the ranking administration official to speak publicly =
about the episode, appeared nonplussed when asked yesterday about =
Reginald A. deGueldre, a uniformed White House officer who moonlighted =
as Mr. Spence's bodyguard and arranged the late-night White House tours. =



     "Sir, were any Secret Service policies violated by Officer =
deGueldre's moonlighting relationship with Craig Spence, and, if so, =
what actions have you taken to correct that?" he was asked.=20
      "Would you repeat that again?" Mr. Brady requested.=20

      "Yes, sir, I'm talking about the UD [Uniformed Division] officer, =
Reginald deGueldre, who was working moonlighting for Craig Spence and =
who arranged the tours for him. I'm wondering if any Secret Service =
policies are violated by such moonlighting, and whether these visits to =
the White House are . . ."=20

      Mr. Brady interrupted at that point and said, "I can't give you a =
precise answer on that now. We'll certainly look into it."=20

      "You don't know if your own Secret Service is conducting an =
investigation into something that's been this prominent?" the secretary =
was then asked.=20

      "I am sure they're looking into it," he said. "The nature of that =
investigation I cannot report to you at this time."=20

      A Treasury Department spokeswoman said later, "The director of the =
Secret Service is looking into whether or not any policies have been =
violated" by the moonlighting or admission of outsiders to the White =
House compound.=20

      She said neither Mr. Brady nor the Secret Service would comment on =
additional matters involved in a criminal investigation by the U.S. =
Attorney's Office of the homosexual prostitution ring that Mr. Spence =
patronized.=20

      White House spokesman Marlin Fitzwater and several of his deputies =
have said repeatedly that they do not know if Mr. Bush considered it =
appropriate for male prostitutes to be touring the White House at 1 a.m. =


      Yesterday, while talking informally to several reporters at the =
White House, Mr. Fitzwater parried one question this way: "What are they =
saying, that you should have sexual-preference checks on people that =
come into the White House?"=20

      He also said, "We don't have any involvement that I know of."=20

      Although he has talked repeatedly to individual reporters, =
including those for The Washington Times, Mr. Fitzwater has not held a =
general briefing since before the prostitution ring stories broke, =
largely because of the holiday weekend and because administration =
experts gave briefings on Mr. Bush's European trip, which begins Sunday. =


      The last of those briefings was scheduled for today, but Mr. =
Fitzwater reportedly was considering holding a general briefing as well, =
his first in nine days.=20

      Mr. Fitzwater and his staff have declined consistently to say if =
they would take the question to Mr. Bush, a practice done only rarely =
and generally only on matters they expect the president might be willing =
to discuss.=20

      One senior official, who insisted on anonymity, said it was =
unlikely any staff member would ask Mr. Bush such a question, =
discounting any threats to security and portraying it as a sordid sex =
matter beneath presidential dignity.=20

      Photo, Treasury Secretary Nicholas Brady concedes a probe is under =
way., Photo by Kevin T. Gilbert/The Washington Times,
    =20



-------------------------------------------------------------------------=
-------

  Spence was target before raid on ring=20
      Jerry Seper, and Michael Hedges The Washington Times; Part A; Pg. =
A1 July 10, 1989, Monday, Final Edition; Correction Appended

      Craig J. Spence, the Washington lobbyist and power broker, was the =
subject of a Secret Service investigation even before a February raid on =
a homosexual prostitution ring to which he has been linked, The =
Washington Times has learned.=20

       =20
--------------------------------------------------------------------
            Mr. Spence arranged at least four midnight tours of the =
White House, including one June 29, 1988, on which he took with him a =
15-year-old boy whom he falsely identified as his son.=20
--------------------------------------------------------------------
          =20
      The Secret Service last week expanded its investigation with =
inquiries about friends and associates of Mr. Spence.=20

      Two of those friends are former U.S. Attorney Joseph diGenova and =
his wife, Victoria Toensing, a former deputy assistant attorney general =
for the Justice Department's criminal division.=20

      During interviews last week with friends and associates of Mr. =
Spence, the Secret Service made copies of photographs from a July 4, =
1988, party showing him mugging for the camera with Mr. diGenova and =
Miss Toensing, who in one photo is draped in an American flag.=20

      It was on that same weekend that Mr. Spence arranged a 1 a.m. tour =
of the White House, which one participant said included two male =
prostitutes.=20

      The Secret Service also wants to talk to Mr. Spence, but has been =
unable to locate him, according to persons the agents have interviewed.=20

      Mr. diGenova couldn't be reached yesterday for comment. He has =
been interviewed twice by The Times over the past two weeks. In the =
first conversation, he described a fleeting contact with Mr. Spence =
which, he said, was based solely on mutual business interests.=20

      In a second conversation, he said he attended a few of Mr. =
Spence's parties, as U.S. attorney and later after he left the =
government to enter private law practice. He eventually traveled to =
Japan last December on a business trip with Mr. Spence and Wayne Bishop, =
chairman of the Washington law firm of Bishop, Cook, Purcell & Reynolds, =
where Mr. diGenova works. Business contacts made on the trip proved =
fruitful and are still being pursued, he said.=20

      "When I got back from Japan, some anonymous person suggested that =
he [Mr. Spence] might be using cocaine. Well, of course my antennae went =
up right away, and I checked those rumors out . . . and found much to my =
surprise that people suspected the worst," Mr. diGenova said.=20

      At that point, Mr. diGenova said, he severed his relationship with =
Mr. Spence. He said he didn't report his findings or concerns to =
authorities.=20

      Although the Secret Service hasn't said what sparked its interest =
in Mr. Spence, one of the persons questioned by the Secret Service said =
investigators appeared to be "interested" in the connections the =
lobbyist had made.=20

      The Secret Service was the lead agency in a Feb. 28 raid on a =
house on 34th Place NW used by a homosexual prostitution ring, a ring =
with which Mr. Spence spent up to $20,000 a month, according to call =
boys, his friends and documents obtained by The Times.=20

      The federal investigation, headed by the office of U.S. Attorney =
Jay Stephens and conducted by Secret Service agents, appears to be aimed =
at determining whether Reagan and Bush administration officials and =
others were compromised by Mr. Spence, through the use of female and =
male prostitutes and with electronic audio and video eavesdropping at =
parties at his house in the fashionable Kalorama neighborhood in =
Northwest Washington.=20

      Another focus of the probe, persons interviewed by the Secret =
Service have told this newspaper, is whether White House security was =
compromised by the late-night tours arranged by Mr. Spence.=20

      Mr. Stephens has said only that his office is investigating =
"possible credit-card fraud" in connection with arrests made in the 34th =
Place raid. But numerous sources have told The Times that the Secret =
Service is asking about Mr. Spence's activities.=20

      Secret Service agents on Friday also asked a former Spence =
colleague detailed questions about attempts by the lobbyist to obtain =
information about the Delta Force, an elite U.S. commando team involved =
in top-secret military operations.=20

      The former friend said Mr. Spence had given a gold Rolex watch to =
a highly decorated Vietnam veteran who is now associated with Army =
anti-terrorist units. Later, according to the former friend, Mr. Spence =
alluded to the gift of the watch and asked the veteran detailed =
questions about the Delta Force operations.=20

      The Vietnam veteran was one of six persons on the July 3 White =
House tour, arranged by Mr. Spence. A uniformed Secret Service guard, =
who admitted the group to the White House and served as an unofficial =
host, also told The Times that he had received a gold Rolex watch worth =
about $8,000 from Mr. Spence but said Mr. Spence had asked for nothing =
in return.=20

      Mr. Spence collected key officials of the Reagan and Bush =
administrations, media celebrities and high-ranking military officers, =
among others, for his glittery dinner parties at his Kalorama home. =
According to friends, visitors to Mr. Spence's Wyoming Avenue NW house =
and records, the host eavesdropped on some gatherings to compromise =
guests and blackmailed some associates with threats to disclose their =
indiscretions.=20


     Efforts to reach Mr. Spence during the past three weeks have been =
unsuccesful. He telephoned The Times on June 29 in response to a =
telefaxed message but hung up when asked about his activities. His fax =
machine number has since been disconnected.=20
      Mr. diGenova was nominated by President Reagan to be U.S. attorney =
in 1983. Prior to that, he was an assistant U.S. attorney in the =
Washington office, chief counsel and staff director of the Senate Rules =
Committee and chief minority counsel for the Senate Judiciary Committee. =


      In 1981, as chief counsel for the Senate Rules Committee, Mr. =
diGenova was responsible for overseeing the Reagan transition after =
Republicans gained control of the Senate in the 1980 elections. From =
June 1975 to April 1976, Mr. diGenova was counsel to the Senate Select =
Committee on Intelligence, the so-called Church Committee that =
investigated allegations of CIA and FBI wrongdoing.=20

      Mr. diGenova announced his resignation as U.S. attorney in January =
1988, and he left office to begin his private practice on March 1.=20

      Miss Toensing, who also is in private practice, was chief counsel =
for the Senate Select Committee on Intelligence from 1981 to 1984 when =
she resigned to join the Justice Department as a deputy assistant =
attorney general.=20

      At Justice, she headed the criminal division's procurement fraud =
unit and was instrumental in a number of high-profile indictments, =
including several involving General Dynamics. She also was responsible =
for the investigation and prosecution of terrorists.=20

      A number of photographs, including more than a dozen from the 1 =
a.m. White House tour, were taken over the July Fourth weekend in 1988 =
by a participant in Mr. Spence's revelries. The photos, copies of which =
were obtained last week by The Times, have been reviewed by the Secret =
Service.=20

      Of the several snapshots of the July 4, 1988, tour reviewed by the =
Secret Service, only two - both of which included Mr. diGenova and his =
wife - were copied.=20

      Craig Spence was a registered lobbyist for several Japanese firms =