🚀 go-pugleaf

through 1987 and established close friendships with a number of leading =
Japanese politicians, including Motoo Shiina, considered by Tokyo =
analysts to be an inside favorite to replace scandal-plagued Sousuke Uno =
as prime minister.=20

      Mr. Spence and Mr. Shiina were embroiled in a real estate deal =
involving the house in Kalorama, a two-story Victorian showpiece valued =
last year by real estate agents at $1.15 million.=20

      By the time a lawsuit filed by Mr. Shiina over the property was =
settled, the Japanese official had admitted in court papers to giving =
Mr. Spence $345,000 in cash.=20

      Mr. Spence has told several current and former friends that he =
obtained the money to buy the house by blackmailing Mr. Shiina. Mr. =
Shiina has denied he was blackmailed by Mr. Spence.=20

      The lobbyist moved in November 1988 from the Kalorama house, on =
Wyoming Avenue, to an apartment on Massachusetts Avenue NW, but =
apparently his operations remained unchanged.=20

      A female prostitute who worked for the escort service that =
supplied Mr. Spence with call boys, said he hired her to have sex with =
young military men in his part-time employ.=20

      The prostitute, describing herself as retired, said Mr. Spence =
ordered her to engage in those assignations in certain specific =
locations in his Massachusetts Avenue apartment, enabling him to =
eavesdrop on the encounters. One of her clients, an enlisted man =
stationed at a local Army base, confirmed that he worked for Mr. Spence, =
and the prostitute's account.=20

      "Some of the men were married," she said. "They told me he was =
using what I did with them against them."=20

      Once, Mr. Spence's influence with the Washington power elite =
appeared almost limitless, demonstrated by his ability to arrange =
midnight tours of the White House. The Times has confirmed that 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

      One man Mr. Spence apparently cultivated was a uniformed Secret =
Service officer assigned to the midnight shift at the White House. The =
officer, Reginald A. deGueldre, was interrogated for more than 10 hours =
last week about his association with Mr. Spence. Five Secret Service =
agents, armed with search warrants, searched his house for nearly two =
hours Friday night, although they wouldn't say what they were looking =
for. The agents seized several photographs from Mr. deGueldre's home.=20

      Mr. deGueldre said he has been told he will be called to testify =
before a federal grand jury. According to one law enforcement official, =
Mr. deGueldre failed the portion of a polygraph test involving favors he =
may have done for Mr. Spence.=20

      Photo, In a snapshot copied by the Secret Service, Craig J. Spence =
(right) and former U.S. Attorney Joseph diGenova watch Mr. diGenova's =
wife, former Deputy Assistant Attorney General Victoria Toensing, clown =
at a party.; Photo, Reginald A. deGauldre, a uniformed Secret Service =
officer, holds the door to the White House open for two of the six =
persons who were given a tour at 1 a.m. on July 3, 1988. The tour, =
arranged by Craig J. Spence, is the subject of a Secret Service probe. =
The photo was taken by another tour pa[rticipant.]=20

      CORRECTION-DATE: July 14, 1989, Friday, Final Edition=20

      CORRECTION:=20

      Due to an editing error, a story Monday in The Washington Times =
incorrectly said that photographs of former U.S. Attorney Joseph =
diGenova and his wife, Victoria Toensing, an ex-deputy assistant =
attorney general, were taken during a July 3, 1988, tour of the White =
House arranged by former Washington lobbyist Craig J. Spence.=20

      Mr. diGenova and Ms. Toensing did not go on the July 3 tour, =
which, according to one participant included two male prositutes. =
However, the couple did attend a party at Mr. Spence's house on the same =
weekend, during which the photographs were taken.
    =20



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

  Spence ma[y] be Shiina's downfall=20
      Edward Neilan The Washington Times, Part A; Pg. A1 July 18, 1989, =
Tuesday, Final Edition
      TOKYO
      apanese nuclear-physicist-turned-politician Motoo Shiina has been =
described here as "a good friend of the United States" - and as a shrewd =
businessman who may have passed U.S. aerospace secrets to the Soviet =
Union.=20

       =20
--------------------------------------------------------------------
            The magazine "Shukan Shincho," a popular weekly, raised past =
allegations that Mr. Shiina leaked sensitive U.S. information to the =
Soviet Union - allegations the magazine said have never been explained.=20
--------------------------------------------------------------------
          =20
      Mr. Shiina, 54, a member of Japan's lower House of =
Representatives, has been keeping an extremely low profile lately amid a =
swirling scandal involving his relationship with Craig J. Spence, a =
onetime U.S. lobbyist for Japan and business associate of Mr. Shiina's.=20

      Mr. Shiina has declined to answer telephone inquiries on his =
dealings with Mr. Spence, but has responded cautiously to direct =
questions through a lawyer, Chikahiko Soda. The questions have dealt =
mainly with a loan by Mr. Shiina to Mr. Spence to purchase the Wyoming =
Avenue NW house where homosexual parties took place.=20

      "If his [Mr. Shiina's] involvement in any of this is true, then it =
would create a serious political problem for Shiina and his political =
life will probably be damaged considerably," said Hisao Imai, a =
well-known Japanese political commentator.=20

      Mr. Imai, head of the Japan Commentators Association and a former =
political editor of Sankei Shimbun newspaper, said yesterday that there =
is hope among younger ruling Liberal Democratic Party members that Mr. =
Shiina will be a future party leader or even prime minister.=20

      "If we lose him, this is a great loss not only for the LDP [the =
ruling Liberal Democratic Party] but for the nation," Mr. Imai said.=20

      "The reason that Mr. Shiina is touted as a rising star is that he =
has been previously untainted by any scandal and he is an =
internationalist," said another political commentator, Kan Ito.=20

      With his own independent style of diplomacy he has established =
himself as a leading expert on U.S.-Japan relations, analysts said.=20

      Although several Diet members speaking anonymously yesterday =
described Mr. Shiina as a "true internationalist" and "good friend of =
the United States," one Japanese magazine came close to calling him a =
spy for the Soviet Union.=20

      The magazine "Shukan Shincho," a popular weekly, raised past =
allegations that Mr. Shiina leaked sensitive U.S. information to the =
Soviet Union - allegations the magazine said have never been explained.=20

      The magazine quoted a newsman covering the Japan Defense Agency as =
saying that General Dynamics Corp. in 1979 allowed Mr. Shiina to =
photograph on microfilm specifications of the new F-16 fighter.=20

      In exchange, the newsman was quoted as saying, Mr. Shiina agreed =
to lobby for the company's involvement in the joint U.S.-Japan =
production of the FSX jet fighter.=20

      The magazine noted that stories surfaced in Japan that the =
technical data of the F-16 was leaked to the Soviet Union by "the son of =
an influential Japanese politician." No name was given, but the magazine =
followed with a description of Mr. Shiina's father, the late Etsusaburo =
Shiina, who was a former LDP kingmaker and holder of several key Cabinet =
posts.=20

      But Mr. Ito said yesterday, "Any charges that he is soft on the =
Soviet Union doesn't add up in my opinion. He's always speaking out =
about the Soviet buildup in Northeast Asia."=20

      Mr. Ito also said, "Mr. Shiina is regarded as well-informed on =
foreign affairs and defense matters and has been known to criticize both =
ruling and opposition members for talking nonsense on those subjects in =
the Diet."=20


     Mr. Imai said political circles around Nagatacho - the Tokyo area =
akin to Washington's Capitol Hill - are talking more and more these days =
about stories in The Washington Times about Mr. Spence and Mr. Shiina.=20
      He said some rumors hold that the Central Intelligence Agency =
cooked up the whole thing to discredit Mr. Shiina.=20

      "I hope Mr. Shiina is not such a bad guy as was described in =
recent Japanese periodicals' reports," said Mr. Imai. "It has been =
believed that he will sooner or later become foreign minister. But =
because of this scandalous news, he may have some difficulties in =
reaching a Cabinet post or beyond.=20

      "The news that Mr. Shiina was closely associated with Mr. Spence =
was quite a shock to LDP members and those in the Diet. But a possible =
examination into the matter will not come before the July 23 Upper House =
elections for which they are waging an unprecedentedly defensive =
campaign," he said.=20

      An article profiling Mr. Shiina published 10 years ago in The =
Daily Yomiuri English-language newspaper began:=20

      " 'What should I say about myself?' he asks smilingly, taking a =
slow, deep drag at his cigarette between sips of hot, steaming coffee =
which Hideko, his charming wife, had served. Meanwhile, outside, the =
gently falling snow had blanketed Shiina's quite ample garden, giving up =
an impression of serene quiet.=20

      "In his well-modulated voice, Motoo talked of what he calls his =
'humble' existence.=20

      "Not so, for this diminutive (5 feet, 5 inches) man has been his =
father's active and devoted campaigner for a number of years. His father =
is Etsusaburo Shiina, former vice-president of the ruling =
Liberal-Democratic Party, Diet member, ex-Minister of Foreign Affairs, =
ex-Minister of International Trade and Industry (MITI) and ex-Minister =
of Finance."=20

      The article said Mr. Shiina spent his campus days at Nagoya =
University, graduating in 1954 with a major in nuclear physics, a field =
in which he was awarded a scholarship by the U.S. State Department for =
one-year's study of nuclear reactors at the Argonne National Laboratory =
in Chicago.=20

      Leaving his infant daughter behind with his mother, a friend was =
found to sponsor Hideko's stay in the United States. "It was quite tough =
for both of us, but somehow we managed," he told The Daily Yomiuri, =
crediting his success to his wife's devotion and care.=20

      On his return to Japan in 1954, the younger Shiina set up his own =
company which manufactures precision instruments. He founded two other =
companies, one a joint venture with an American firm, according to =
newspaper reports that provided no additional details.=20

      Mr. Shiina's lawyer said yesterday of his client's business =
affairs, only that he resigned as an officer of the Tokyo-registered =
company Samutaku Co. Ltd. on becoming a Diet member in 1979 but still =
holds a large number of shares in the company and remains an adviser.=20

      In addition, Mr. Shiina in 1979 was a board member of two =
non-profit organizations - the World Economic Information Service and =
the Asian Club, the latter funded by MITI.=20

      Mr. Shiina told a reporter at the time that World Economic =
Information Service collates and studies economic information from all =
over the world for the guidance of the Japanese government and business =
world."=20

      The Asian Club, established in 1975, aimed at "promoting economic =
goals." Mr. Shiina told an interviewer prior to his first election that =
he devoted much time to a private organization called Participation =
which sent out Japanese artists and musicians to various Southeast Asian =
countries.=20

      On July 5, The Washington Times published a story describing a =
business deal between Mr. Shiina and Mr. Spence in which the latter made =
more than $700,000 in four years working for Mr. Shiina's Policy Study =
Group.=20

      Mr. Spence also bought a Kalorama house using cash loaned to him =
by Mr. Shiina. When he refused to pay back the loan, Mr. Shiina sued.=20

      * Special correspondent Hiroyasu Tomaru contributed to this =
report.
    =20



-------------------------------------------------------------------------=
-------
Not for commercial use. Solely to be used for the educational purposes =
of research and open discussion.=20
  First lady not worried about hookers' tour of White House=20
      Paul Bedard The Washington Times; Part A; WORLD; Pg. A10 July 10, =
1989, Monday, Final Edition
      WARSAW, POLAND
      First lady Barbara Bush said yesterday that the Secret Service =
investigation of a late night White House tour that reportedly included =
two male prostitutes has not raised security questions the first family =
is worried about.=20

       =20
--------------------------------------------------------------------
            Mrs. Bush added that "I'm not into all of this" and said it =
was "good" that The Washington Post wasn't following The Times' story.=20
--------------------------------------------------------------------
          =20
      Speaking publicly for the first time about the July 3, 1988, tour =
arranged by former Washington lobbyist Craig J. Spence, Mrs. Bush said =
she and her husband have no fears of a security breach.=20

      "Not at all," she told reporters on Air Force One shortly after it =
took off from Andrews Air Force Base en route here for the first leg of =
a 10-day European trip by President Bush.=20

      Mrs. Bush, noting that she reads all of the stories printed in the =
Daily Press Summary, a half-inch thick digest of stories in the print =
and electronic media, said the reports about the scandal uncovered by =
The Washington Times haven't alarmed her.=20

      "There haven't been a lot of stories in our house about it," she =
said.=20


     Mrs. Bush added that "I'm not into all of this" and said it was =
"good" that The Washington Post wasn't following The Times' story.=20
      Ever since The Times first reported the tour on June 29, the White =
House has avoided comment. Last week, Treasury Secretary Nicholas Brady, =
who heads the Secret Service, reluctantly confirmed reports of a Secret =
Service investigation.=20

      Presidential spokesman Marlin Fitzwater said the service hasn't =
raised security concerns for the White House as a result of the probe.=20

      White House officials have said that the midnight tours such as =
those arranged for Mr. Spence do not threaten the First Family's =
security because they are allowed only in office areas and not the =
residence.=20

      The tours for Mr. Spence, who has been linked to a federal =
investigation of a Washington homosexual prostitution ring that catered =
to government, media and business officials, were set up by Reginald A. =
deGueldre, a uniformed White House officer who moonlighted as the =
lobbyist's bodyguard.=20

      Mr. Fitzwater said the Secret Service is "looking into the action" =
of the officer.=20

      White House officials have said any staff member with the proper =
credentials such as those held by Mr. deGueldre can give private tours, =
and after-hours tours are encouraged because they don't disturb those =
working during the day. The tours commonly include a view of the Oval =
Office.=20

      "I think they've [The Times] overblown the White House angle. No =
one knows who these guys are," said one administration official, =
referring to the associates of Mr. Spence named so far in The Times.=20

      But, he added, the White House continues to closely follow the =
story.
    =20



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

  Secret Service furloughs third White House guard=20
      Jerry Seper, and Michael Hedges The Washington Times; Part A; =
NATION; Pg. A3 July 26, 1989, Wednesday, Final Edition

      The Secret Service, looking into possible security breaches at the =
White House during late-night tours arranged by former Washington =
lobbyist Craig J. Spence, has placed a third White House guard on =
administrative leave.=20

       =20
--------------------------------------------------------------------
            The June 29 tour, according to several of Mr. Spence's =
friends, occurred after the Washington lobbyist visited the ABC =
television studios of Nightline and introduced a 15-year-old boy, =
identified as his son, Will, to anchorman Ted Koppel.=20
--------------------------------------------------------------------
          =20
      Secret Service officials also interviewed a captain on the White =
House security detail for more than seven hours over the weekend, =
although he remains on the job, according to law enforcement officials.=20

      The reason for the lengthy questioning of Capt. Joseph Shober - =
four hours Saturday and three hours Sunday - was not immediately known, =
and Capt. Shober was not available yesterday for comment.=20

      He was the supervisor of Officer Reginald A. deGueldre and the =
other suspended officers during the period when the late-night White =
House tours, including one July 3, 1988, that reportedly included two =
male prostitutes, occurred, officials said.=20

      The uniformed Secret Service officer who was placed on =
administrative leave Monday night, whom Secret Service spokesman Rich =
Adams refused to identify, worked some of the same midnight shifts as =
Officer deGueldre and another uniformed guard placed on administrative =
leave last week.=20

      Mr. Adams also declined to comment on why the third officer was =
relieved of his duties or why Capt. Shober was questioned. "This is an =
internal matter and beyond that I just can't comment," he said. "It is =
an ongoing investigation, and we are talking to a number of people. Just =
because we're talking to someone does not make them a subject of the =
investigation."=20

      The Secret Service investigation, authorities said, is aimed at =
determining if White House security was breached during late-night tours =
arranged by Mr. Spence and attended by several of his friends.=20


     One law enforcement official said that, while many Secret Service =
officers and others have taken relatives and friends through the White =
House on special tours, they usually occur between 7 p.m. and 9 p.m., =
and that 1 a.m. tours - as arranged by Mr. Spence - are "totally out of =
the ordinary."=20
      Officer deGueldre has acknowledged knowing Mr. Spence and =
attending parties the Washington lobbyist held at his Wyoming Avenue =
mansion. The officer also admitted during interrogation by the Secret =
Service, according to an affidavit filed in U.S. District Court, that he =
removed valuable china and other items from the White House, some of =
which ended up in Mr. Spence's house.=20

      Officer deGueldre also told The Washington Times he had accepted =
an $8,000 gold Rolex watch from Mr. Spence. It is not clear what Mr. =
deGueldre did for Mr. Spence, if anything, or what favors might have =
been expected.=20

      The officer has denied any wrongdoing.=20

      Mr. Spence's name surfaced following a Feb. 28 raid by the Secret =
Service, Metropolitan Police and U.S. marshals on a house at 6004 34th =
Place NW, where a homosexual prostitution ring was operating. Credit =
card vouchers showed that the lobbyist, who has worked as a registered =
foreign agent for various Japanese organizations, spent as much as =
$20,000 a month on call boy services.=20

      Mr. Spence has not been available for comment.=20

      Alleged credit card fraud involving a number of escort services =
that sent male prostitutes to the 34th Place house is currently under =
investigation by the office of U.S. Attorney Jay Stephens. Mr. Stephens =
has declined to discuss the matter.=20

      The Secret Service has jurisdiction over credit card crimes.=20

      According to several people who were on the White House tours =
arranged by Mr. Spence, the Washington lobbyist put together at least =
four tours of the presidential mansion last year, two of which - June 29 =
and Nov. 22 - he attended personally.=20

      The June 29 tour, according to several of Mr. Spence's friends, =
occurred after the Washington lobbyist visited the ABC television =
studios of Nightline and introduced a 15-year-old boy, identified as his =
son, Will, to anchorman Ted Koppel.=20

      Several of the persons who went on the White House tours have been =
interviewed by the Secret Service about Mr. deGueldre and Mr. Spence. =
Those interviewed said investigators were concerned about possible =
security breaches and about Mr. Spence's connections to well-placed =
military and government officials, but that the agents did not =
elaborate.=20

      One tour participant said some of the items allegedly taken out of =
the White House by Mr. deGueldre might have been smuggled out during at =
least one of the Spence-arranged tours. The participant said Mr. =
deGueldre handed over a sealed box containing "somethign that rolled =
around" and asked that it be hand-delivered to Mr. Spence.
    =20



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

A portion of the editorial said: ''One child, who has been under =
psychiatric care, is said to believe that she saw George Bush at one of =
King's parties. This is the same person whose story of a severed head =
was looked into. Neither tale could be verified.''=20

That sounds familiar, Satanism, child abuse, and grave desecration is =
not new.... We hear about it in the news and we see some kid dressed in =
black with suicidal lyrics.. but where did they learn this behaviour?=20



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

  SEX PARTY HELD AT AUSSIE EMBASSY 'WE'RE NOT TALKING CROCODILE DUNDEE =
HERE'=20
      Michael Hedges and Jerry Seper Washington Times; Final Section: A =
Page: A1 Friday, July 28, 1989

      Three female prostitutes took part in a sex party at the =
Australian Embassy in November that included several members of the =
embassy staff, according to one of the women involved who worked for an =
escort service now under federal investigation.=20

       =20
--------------------------------------------------------------------
            She said she had been to Mr. Spence's house on at least four =
occasions and that during each visit she had sex with young soldiers =
whom Mr. Spence bragged he was blackmailing=20
--------------------------------------------------------------------
          =20
      The prostitutes had sex with at least three men each during the =
party that lasted a little longer than three hours, said the woman. She =
said she was paid $800 in "crisp, new $100 bills" after the job.=20

      The young blonde former prostitute, who asked that she not be =
identified, described the men she had sex with as middle-aged, adding, =
"We're not talking Crocodile Dundee here."=20

      The escort service which employed the woman is one of several tied =
to a Washington area homosexual prostitution ring that serviced =
officials of the Reagan and Bush administrations, military officers, =
media representatives, lawyers, businessmen and others.=20

      The former prostitute also said she had sexual encounters with =
U.S. military personnel at the behest of former Washington lobbyist =
Craig J. Spence, a major client of the male call-boy ring, and with a =
high-ranking Canadian diplomat at his waterfront Georgetown home.=20

      She provided details about her jobs, including the names of some =
clients, which have been confirmed by The Washington Times.=20

      Both the diplomat and one of Mr. Spence's soldier-bodyguards have =
admitted they had sex with the woman under the exact circumstances she =
described.=20

      The U.S. Attorney's Office is probing alleged credit card fraud =
involving the escort services, and the Secret Service is looking into =
possible security breaches that may have occurred during late-night =
tours of the White House arranged by Mr. Spence for his friends. Two =
male prostitutes went on one of the tours, according to a person who =
participated in the 1 a.m. White House walk-through.=20

      The former prostitute, who was interviewed on several occasions by =
The Times, described in detail paid sexual meetings with foreign =
diplomats, both in their homes and in Massachusetts Avenue embassies, =
scheduled through Jet Set, the escort service which the woman said =
supplied the Australian Embassy party.=20

      The woman said that during the late afternoon November embassy =
party, the group, which included the two other women she came with, a =
few other women she believed were prostitutes and a dozen or more men, =
met in one large office-type room.=20

      "The men I had sex with took me one at a time into a smaller room =
nearby which was like an office, it had office-type furniture," the =
woman said.=20

      The men never identified themselves beyond first names, she said. =
"There wasn't a lot of small talk. We were there for one thing."=20

      The woman also described the interior of the embassy, correctly =
gave its address and location on Massachusetts Avenue, and depicted the =
furnishings of the room where she said the sex occurred.=20

      Australian Embassy officials, when told on July 6 of the woman's =
allegations concerning the party, originally said they would turn the =
information over to U.S. Attorney Jay Stephens for a full investigation. =


      However, John McCarthy, minister of congressional liaison for the =
embassy, said during a second interview with The Times that he and his =
staff had conducted an extensive internal investigation - coordinated by =
Australian Federal Police stationed at the embassy - and, while not =
ruling out the possibility that the November affair had occurred, had =
concluded that the woman's story was "improbable."=20

      A report of that investigation concluded, "We cannot completely =
exclude that a clandestine function did occur, but our investigations =
have made clear that it would have required a great deal of planning =
beforehand to gain entry surreptitiously."=20

      The report said, "The embassy's investigations produced no =
corroboration of the allegations."=20

      An Australian television station, informed of the woman's charges =
by The Times, met with the former prostitute and determined that her =
story was valid. A story concerning the allegations ran yesterday on an =
Australian network news program.=20


     "I saw no good reason to disbelieve her story," said Tony Coghlan, =
the Network Ten bureau chief in New York City who interviewed the former =
prostitute. "She came to us in good faith and didn't ask to be paid.=20
      "I talked with her at great length and grilled her about the =
incident and the embassy. It was my feeling she was telling the truth," =
he said.=20

      Mr. Coghlan said the factors which led to the embassy staff =
concluding the episode probably did not occur did not impress him, and =
that he found the woman's depiction of the event consistent with his =
knowledge of the embassy and Australian customs.=20

      Neale Prior, a reporter for the Sydney Morning Herald, said his =
newspaper published a story yesterday recounting the television report. =
He said the paper planned a follow-up account in today's editions.=20

      "This story has only broken in Australia four hours ago," Mr. =
Prior said yesterday. "If more comes out on it, there will be a big =
reaction here."=20

      Yesterday, Brett Bayly, press officer at the embassy, said, =
"Frankly, we're just puzzled. We haven't been able to take it any =
further."=20

      Kunjurit "Dennis" Singh, the man who operates the Jet Set escort =
service, admitted that the three women worked for the service during =
1988, but he declined to name specific jobs on which they were =
dispatched.=20

      "This is confidential, like a dating service," Mr. Singh said. "I =
can't tell you who was dating whom."=20

      He said the men and women working for him were paid only to spend =
time with clients, adding that he was unaware of any illegal sexual =
activities which occurred on these dates.=20

      One of the prostitutes employed by Mr. Singh said she was given a =
W-2 form at the end of the year listing her job as "escort."=20

      The former prostitute provided names of some of her embassy =
clients, including a key official at the Canadian Embassy for whom she =
said she was hired for sex at his Georgetown house.=20

      The Canadian official originally denied the encounter. But after =
he was provided with detailed information about himself, his habits and =
his Georgetown home - all described by the former prostitute - he said =
his personal life was "none of the newspaper's business" and asked that =
his name not be used to spare him embarrassment.=20

      Wesley Pruden, managing editor of The Times, said when the =
newspaper first broke the sex ring story that names of participants =
would not be made public unless their involvement appeared to compromise =
U.S. or friendly nation security.=20

      The former prostitute, who has taken a legitimate job and said she =
has put her past behind her, also in a relatively brief period had =
sexual liaisons with a number of wealthy businessmen while working for =
an escort service at 34th Place NW, which federal authorities raided in =
February, according to her recollections and diaries she kept at the =
time.=20

      The service was one of several that, according to federal =
authorities and others, accepted cash, checks and credit cards to pay =
for prostitution activities - from both men and women.=20

      The former prostitute said she had worked on numerous occasions =
for Mr. Spence, the once powerful Washington lobbyist whose name has =
surfaced in the probe of the homosexual prostitution ring. She said she =
had been to Mr. Spence's house on at least four occasions and that =
during each visit she had sex with young soldiers whom Mr. Spence =
bragged he was blackmailing.=20

      One of the soldiers, now working on a prestigious detail at Fort =
Myer, admitted he worked for Mr. Spence, and also that he spent time =
with a female prostitute while at Mr.Spence's Massachusetts Avenue =
apartment. He said he was paid several hundred dollars to provide =
security at various parties Mr. Spence hosted.=20

      The former prostitute said on one occasion Mr. Spence forced her =
to take a bath with two men and him, which degenerated into "an unhappy =
outing."=20

      The woman said that one of the soldiers contacted her a few months =
after the bathtub incident and told her Mr. Spence had shown pictures of =
them having sex to the soldier's wife and that it led to a separation.=20

      The soldier told her that Mr. Spence initially blackmailed him =
into "beating up a couple guys" to keep his wife from finding out, she =
said. But Mr. Spence "burned him anyway" because the soldier refused to =
have sex with him, the woman said.=20

      Photo, The Australian embassy in Washington., By The Washington =
Times
    =20




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

  SPENCE ELUSIVE, SAID TO BE EVERYWHERE BUT ISN'T
      Jerry Seper and Michael Hedges Washington Times, Final Section: A =
Page: A1
      Thursday, August 3, 1989

      Where in the world is Craig Spence?=20

      A lot of people say they know, but the sightings of Mr. Spence, =
the mysterious Washington lobbyist who wined and dined the city's power =
elite while patronizing a call-boy ring now under U.S. investigation, so =
far are as reliable as the sightings of Elvis.=20

       =20
--------------------------------------------------------------------
            Some friends of Mr. Spence cling to the fanciful story - =
told often by the shadowy lobbyist - that he is on "one last desperate =
mission" for the CIA. He often predicted his own demise, cautioning =
friends not to take any account of his death at face value.=20
--------------------------------------------------------------------
          =20
      He (Mr. Spence, not Elvis) was seen on a bus at 28th and P streets =
last week.=20

      Or the flamboyant Washington influence peddler recently made =
several appearances at a Georgetown disco - sans cape.=20

      Or the man the U.S. Secret Service has sought - apparently =
unsuccessfully - to answer questions about midnight tours of the White =
House, is hiding out in a friend's New York City apartment.=20

      Or he's curled up along a canal in Italy with his favorite book, =
"Death in Venice."=20

      Or he's in Tokyo, sipping martinis with his favorite bartender, =
Hirosumi Toyama, at the Tokyo Hilton.=20

      Or he's at his boyhood hometown, Boston - or was that in New =
Hampshire?=20

      Or he's in the green room on the "Nightline" set at the ABC-TV =
studios in Northwest, waiting to be interviewed by his longtime friend, =
Ted Koppel.=20

      One member of Washington's netherworld, a procurer of prostitutes =
who claimed to have subcontracted lots of work for Mr. Spence, says he =
knows for a fact that Mr. Spence has been staying in Clearwater, Fla., =
with a Washington lawyer.=20

      Reporters investigating that particular late-night tip lost =
enthusiasm when they found out the lawyer had died in January.=20

      Some friends of Mr. Spence cling to the fanciful story - told =
often by the shadowy lobbyist - that he is on "one last desperate =
mission" for the CIA. He often predicted his own demise, cautioning =
friends not to take any account of his death at face value.=20


     A former college classmate of Mr. Spence's, who doesn't profess to =
know where he is, is nevertheless willing to speculate about what =
disguise he might be wearing.=20
      The woman said she attended Boston University with Mr. Spence in =
the 1960s and that for two years he faked an Australian accent, that =
only through recent press accounts did certain old friends learn that he =
had not been the Australian exchange student he said he was.=20

      Recently, Secret Service agents investigating how Mr. Spence might =
have breached White House security with late-night tours searched with a =
warrant his Massachusetts Avenue apartment. The building manager said =
federal authorities had searched the apartment at least twice.=20

      One tenant of the building reported agents were staking out the =
place and "looking very obvious." Nevertheless, the agency was said to =
have been consistently thwarted in its efforts to interview Mr. Spence.=20

      Mr. Spence had led some of his friends to believe that he was =
seriously - perhaps even terminally - ill. To others, he fostered the =
image of a man pursuing one last main chance in the Far East or in =
Europe.=20

      His recent activity was quite a departure from a man who once =
created the illusion of great influence.=20

      When Mr. Spence resurfaces, he must deal with a federal =
investigation headed by the office of U.S. Attorney Jay Stephens. Mr. =
Stephens' office insists for the record it's an investigation of =
credit-card fraud.=20

      But other law enforcement authorities, among others, say the =
Secret Service was interested in Mr. Spence even before the February =
raid on a homosexual-prostitution ring headquarters that led to the =
capital's summer scandal.=20

      One person the Secret Service questioned for more than three hours =
said investigators were "interested" in Mr. Spence's connections to =
well-placed government and military officials.=20

      This person, one of six who took a July 1988 White House tour =
arranged by Mr. Spence, said Secret Service investigators indicated that =
their concern about the former lobbyist "did not result as an outgrowth =
of the February raid."=20

      Questions asked by Secret Service investigators about Mr. Spence's =
activities were "not specifically and singularly tied to credit-card =
fraud," as suggested by Mr. Stephens. The service still won't talk about =
what it's doing.=20

      While Mr. Spence has been a scarce commodity in the flesh, his =
spirit lingers among many of his friends.=20

      Several say they have experienced a rash of hang-up calls at odd =
hours.=20

      "It's what Craig used to do when he was upset with someone," said =
one friend. "It's classic behavior for him."
    =20




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

  SPENCE ARRESTED IN N.Y., RELEASED BIZARRE INTERVIEW IS NO NIGHT ON THE =
TOWN=20
      Jerry Seper and Michael Hedges Washington Times; Final Section: A =
Page: A1 Wednesday, August 9, 1989
      NEW YORK -
      He must have thought he was still wearing his red-lined black =
cape, his wide-brimmed black felt hat and his trademark silk =
handkerchief dangling at a precise angle from his tailored Edwardian-cut =
suit.=20

       =20
--------------------------------------------------------------------
            "How do you think a little faggot like me moved in the =
circles I did?" Mr. Spence asked, his hand fondling the razor blade like =
the flesh of a lover. "It's because I had contacts at the highest levels =
of this government.=20
--------------------------------------------------------------------
          =20
      His plain white knit shirt was wrinkled and soiled, with smudge =
marks on the back and shoulders from a night on a bench in Central Park. =
His high-top white Reebok athletic shoes were scuffed, his pants rumpled =
and loose.=20

      With his belt missing, an unshaven Craig J. Spence - the onetime =
Washington lobbyist of the rich and powerful who is a focus of a federal =
investigation - kept tugging at his pleated khaki pants to keep them =
from falling down.=20

      "Do you know who you are talking to?" he demanded in a loud voice =
as he moved his back along a wall of a friend's fashionable East Side =
apartment, his right hand tightly clutching a razor-blade dispenser from =
which he slid a double-edged blade. "Do you have any idea who I am?"=20

      So began a rambling, eight-hour interview of Craig Spence, the =
object of a monthlong search by print and television reporters and =
agents of the the Secret Service. The interview ran from midafternoon =
Monday until shortly before midnight.=20

      Federal authorities have been pursuing him as part of an =
investigation into allegations of credit-card fraud involving a =
Washington-based homosexual prostitution ring he frequented and possible =
security breaches during late-night tours of the White House that he =
arranged.=20

      After an initial and volatile discussion about suicide and a tense =
moment in a narrow hallway during which he menaced two reporters with =
the razor, Mr. Spence decided to hold court to "impart a few words of =
wisdom" and to "educate the unwashed" about journalism, politics, =
government operations, life and death.=20

      "Death, you know, is only painful to the ones you leave behind," =
he said, congratulating himself on what he suggested was an excellent =
quote and encouraging the reporters to write it down. "As a matter of =
fact, I'm looking forward to it.=20

      "At 48, I'll still look good in hell."=20

      What followed was bizarre, highlighted by moments of brilliance =
and wit, outrageous and obnoxious behavior, unbridled and spontaneous =
humor, and profound and unrelenting bragging.=20

      "How do you think a little faggot like me moved in the circles I =
did?" Mr. Spence asked, his hand fondling the razor blade like the flesh =
of a lover. "It's because I had contacts at the highest levels of this =
government.=20

      "They'll deny it," he said, his voice rising with anger. "But how =
do they make me go away, when so many of them have been at my house, at =
my parties and at my side?"=20

      Mr. Spence's recollections of times past are filled with the names =
of many of Washington's powerful and those of influential men and women =
from other countries. Most of the claims are documented in dozens of =
filings at the Department of Justice, which are required of lobbyists =
who work for foreign governments.=20

      What they all had in common, Mr. Spence said, was that they used =
him for their personal gain, and when things went bad, they forgot his =
name.=20

      "I can't think of one person who hasn't benefited personally from =
knowing me," he said. "I had the world at my house, and now they don't =
know who I am."=20

      During the interview, Mr. Spence picked continually at his nose =
and rubbed his finger across the outline of his shabby mustache. He =
snorted and coughed up mucus. He constantly rubbed his left eye until it =
was red, and he said his vision was blurred.=20


     He walked from chair to chair in the apartment, staying only =
briefly in each spot. He pointed, grabbed, poked and pushed at the =
reporters to make a point or to avoid a question. He intermittently =
leaned forward to strike out at his questioners and then leaned back in =
a defensive mode, lowering his body into whatever chair was at hand.=20
      He refused to answer inquiries he deemed "stupid" and said several =
times he was going to "terminate" the interview, jumping out of a chair =
to run to the door. He nearly left on one occasion but couldn't figure =
out how the locks on the sturdy wooden door worked.=20

      Mr. Spence threatened on four occasions to kill himself. He had =
planned to do so last week, he said, but New York City police had taken =
away his loaded 9mm handgun. "That's the great terminator," Mr. Spence =
said. "Just open your mouth and point to the rear."=20

      The only suicide weapon he had left was the white plastic =
dispenser of cheap double-edged razor blades, which he displayed =
threateningly. He fingered the dispenser constantly throughout the =
interview, pushing one of the blades halfway out to create a knifelike =
effect.=20

      "The man who cuts himself across the veins is looking for help," =
Mr. Spence said, his right hand moving the razor slowly along his =
outstretched left arm. "The man who cuts down the vein is looking to =
die."=20

      He pulled the razor along his arm lengthwise and smiled, then =
suddenly moved the thin blade to the chest of one of the two reporters =
and then to the other. There was silence for a few seconds, then he =
spoke.=20

      "I am not a person to fool with. You should know that by now," Mr. =
Spence said.=20

      His threat soon ended, however, when he remembered he hadn't eaten =
dinner. A mugger in Central Park, he said, had taken his last $100, =
borrowed the day before from a friend, who also had paid off the last =
$400 of a $5,000 bill for three days in the penthouse at the Parker =
Meridien. His credit charges had exceeded the card's limit, and he had =
had no cash to make up the difference.=20

      "I felt sorry for him," said the friend, who asked not to be =
identified.=20

      The friend, in whose apartment the interview took place, later =
discovered that $300 stashed in a jewelry box was missing.=20

      Once he arrived at a nearby restaurant, Ronasi Ristoranti =
Italiano, Mr. Spence's mood changed again. He became loud and demanding, =
ordering the waiters around with the snap of his fingers and shouting =
various vulgarities obviously aimed at shocking both the restaurant's =
employees and its patrons.=20

      He issued cooking instructions to the chef and chastised the =
busboys for almost everything.=20

      Mr. Spence, a frequent visitor to Italy, found nothing on the menu =
to his liking. He ordered a special pasta dish with red, white and green =
noodles - "just like the Italian flag, but you probably didn't know =
that," he shouted at the waiter. He demanded minestrone soup, but only =
after being assured that the vegetables in it were fresh.=20

      He complimented one of the reporters for his choice of wines, =
selected only because it happened to be the least expensive on the menu, =
and then proceeded to order three bottles of it.=20

      While lecturing those at his table on proper etiquette, Mr. Spence =
spilled his wine, knocked over his water glass (which flooded his =
appetizer of baked clams) and blew his nose on the white linen =
tablecloth.=20

      After ordering chocolate cake for dessert, he berated the waiter =
because the piece was too small. "I want to see something brown on this =
white plate," Mr. Spence shouted. "I see nothing here now." The waiter, =
quite unhappy at this point, cut another piece and returned it to the =
table. His waiter's benediction, "enjoy," seemed forced.=20

      At the dinner's end, Mr. Spence borrowed $10 for cab fare to the =
Plaza Hotel on Central Park South, where he said he had left his =
luggage. He said he'd be available to continue the interview in an hour. =


      He disappeared into the night, not to be seen again.=20

      =20


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

      Photo, Craig J. Spence, By Peter Kolk/Special to The Washington =
Times=20

      Photo, The Secret Service has searched Craig Spence's =
Massachusetts Avenue apartment twice to see if his late-night tours =
breached White House security., By Peter Kolk/Special to The Washington =
Times
    =20




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

  Spence arrested in N.Y., released; Once-host to powerful reduced to =
begging, sleeping in park=20
      Michael Hedges, and Jerry Seper THE WASHINGTON TIMES; Part A; Pg. =
A1 August 9, 1989, Wednesday, Final Edition
      NEW YORK
      Craig J. Spence, the once-powerful Washington lobbyist under =
scrutiny by the Secret Service for late-night White House tours and =
theft from the presidential mansion, was arrested here last week for =
carrying a loaded gun and crack cocaine.=20

       =20
--------------------------------------------------------------------
            Mr. Spence hinted the tours were arranged by "top-level" =
officials, including Donald Gregg, national security adviser to Vice =
President Bush and now ambassador-designate to South Korea.=20
            "Who was it who got Felix Rodriguez [the CIA's former Costa =
Rica station chief, who became embroiled in the Iran-Contra affair] in =
to see Bush?"=20

--------------------------------------------------------------------
          =20
      Mr. Spence, who has spent recent weeks prowling this city's finest =
hotels, cutting deals with inmates to protect himself in jail and =
eventually sleeping on a bench in Central Park, faces up to eight years =
in prison.=20

      Monday, in a tense eight-hour interview with The Washington Times =
at a friend's apartment where reporters had tracked him, Mr. Spence said =
the discovery in 1986 that he had AIDS triggered his descent into using =
call boys and crack.=20

      In a conversation that plumbed the depths of morbidity and =
self-pity, Mr. Spence caressed a shiny, double-edged razor blade he said =
he would ultimately use to kill himself and alluded frequently to his =
impending suicide, a move he said he would take before AIDS debilitates =
him.=20

      Asked how he thought he would be remembered in Washington, he =
quoted Carl Sandburg: "Does it matter in the dust and the cool tombs . . =
."=20

      Mr. Spence said he left Washington early in July after becoming =
aware - through news accounts - of the Secret Service investigation. He =
spent several nights in expensive hotels in New York, rapidly spending =
his diminishing funds, according to hotel records and his account.=20

      He was arrested July 31 at the Barbizon Hotel on East 63rd Street =
in Manhattan. According to police records, police took Mr. Spence into =
custody after a disturbance there. A loaded 9mm pistol was seized, along =
with a small amount of crack.=20

      He spent parts of the next three days in jail before being =
released on personal recognizance Aug. 2. He faces another hearing Aug. =
28. Maximum sentences for the charges against him total eight years in =
prison.=20

      Mr. Spence's account of the episode considerably colored the drab =
prose of police reports. He said he had set up a meeting with a call boy =
who arrived with drugs.=20

      When the male escort attempted to steal $10,000 in cash and =
traveler's checks from his room, according to Mr. Spence and police =
reports, Mr. Spence started the ruckus that led to the arrest.=20

      "They put me in the Tombs [slang for the New York jail] for three =
days without a phone call," Mr. Spence said. "I survived by offering to =
be the valet to the biggest thug there, a man appropriately named Heavy, =
and giving him half my bologna sandwich. I had to teach him not to =
pronounce it 'val-ay' like some parking attendant."=20

      Mr. Spence, who is central to an investigation into the theft of =
Truman administration china from the White House and a male call-boy =
ring raided in February by D.C. police and federal agents, has eluded =
Secret Service agents and reporters since his dealings were first =
reported by The Times on June 29.=20

      Mr. Spence, 48, who is being sought by the Secret Service to =
testify early next week before a grand jury empaneled by U.S. Attorney =
Jay Stephens, said the late-night tours could not have been set up by =
uniformed Secret Service Officer Reginald deGueldre. Officer deGueldre =
and another officer were suspended without pay last week as a result of =
the ongoing White House investigation.=20

      "Reggie couldn't have arranged anything," Mr. Spence said. "Poor =
Reggie is a nice guy. I gave him a Rolex watch unsolicited, and he later =
gave me this little 'dish,' as Rosalyn Carter would say, out of the =
Truman china. I didn't ask for it.=20

      "Reggie's like an elevator operator pushing the buttons. But he is =
not the guy who can clear it for you to get in the elevator."=20

      Mr. Spence hinted the tours were arranged by "top-level" =
officials, including Donald Gregg, national security adviser to Vice =
President Bush and now ambassador-designate to South Korea.=20

      "Who was it who got Felix Rodriguez [the CIA's former Costa Rica =
station chief, who became embroiled in the Iran-Contra affair] in to see =
Bush?" Mr. Spence asked when pressed to say who got him inside the White =
House. He agreed that he was alluding to Mr. Gregg.=20

      Mr. Gregg yesterday dismissed the allegation as "absolute bull." =
Vacationing in Delaware, Mr. Gregg said the only time he met Mr. Spence =
- at an April party the lobbyist arranged for former South Korean Prime =
Minister Nam Duc Woo - he found him to be "a thoroughly unpleasant =
character."=20

      "It disturbs me that he can reach a slimy hand out of the sewer to =
grab me by the ankle like this," Mr. Gregg said. "The allegations are =
totally false."=20

      Mr. Spence said all of the parties he held at his Kalorama home =
were bugged by "friendly" intelligence agents.=20

      He described in detail how he rigged his apartment with listening =
devices in electrical outlets in the walls after he was approached by an =
intelligence agency that he refused to identify.=20

      "They basically just wanted to be sure that nothing was being said =
that shouldn't be said," he said.=20

      He boasted that he had "created" important Japanese politicians, =
conducted covert operations for Central American governments and =
traveled in a circle of high-ranking closet homosexuals in Washington. =
He said he would not identify homosexuals in the Bush administration.=20

      "I'm not going to smear the Republican Party," he said.=20

      Mr. Spence described other midnight White House tours, including =
one he said he arranged for a group of powerful Japanese businessmen =
who, he said, photographed themselves in the Oval Office.=20

      He alluded frequently to even deeper mysteries. "All this stuff =
you've uncovered, to be honest with you, is insignificant compared to =
other things I've done. But I am not going to tell you those things, and =
somehow the world will carry on without knowing," he said.=20

      After he became aware of Secret Service interest in his =
activities, Mr. Spence said he destroyed audio tapes and hundreds of =
photographs, many obtained surreptitiously during his parties. By the =
time the Secret Service raided his apartment in July, he said all that =
was left behind was his AZT anti-AIDS medicine.=20

      A Secret Service source confirmed that the agency served a search =
warrant at the Massachusetts Avenue apartment and that agents did in =
fact find vials of AZT.=20

      Careening from the wit that had won him powerful friends to glum =
resignation that "my life is over," Mr. Spence reserved his deepest =
bitterness for former acquaintences who he said have now forsaken him. =
"I've had the world at my house and now they don't know who I am," he =
said. "But they did come, didn't they?"=20

      Mr. Spence said that he frequently used call-boy services and that =
he liked "handsome young blond, 19-year-old boys," but he said he had =
not spent $20,000 a month for them, as reflected in credit card =
documents obtained by The Times. These charges were inflated illegally =
by one escort service manager, he said. He declined to elaborate but =
said he fired his accountant over the matter - although it was never =
turned over to authorities.=20

      During his hour as a Washington host, Mr. Spence dressed in =
Edwardian finery and lived extravagantly, affecting touches such as =
scarlet-lined capes and stretch limousines.=20


     Among those who frequented his parties were 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; then-Ambassador =
to Korea (now to China) James Lilley; and Gen. Alfred M. Gray, =
commandant of the Marine Corps.=20
      Arnaud de Borchgrave, editor-in-chief of The Times, said he went =
to dinner once at Mr. Spence's home, to honor Mr. Lilley.=20

      Even in recent months, Mr. Spence insisted, he retained enough =
cachet to set up large business negotiations such as one between the =
Washington law firm of Bishop, Cook, Purcell and Reynolds - represented =
by former U.S. Attorney Joseph diGenova - and a major computer =
manufacturer, Compaq.=20

      He said influential persons such as Mr. diGenova, although aware =
of his increasing use of drugs, courted him for his network of business =
connections.=20

      Mr. diGenova was in Hawaii yesterday and could not be reached for =
comment. A secretary, told of the nature of the inquiry, said she could =
not divulge Mr. diGenova's vacation telephone number. In earlier =
interviews, the former federal prosecutor said he went to Japan with Mr. =
Spence and Mr. Bishop in 1988 on business.=20

      "When I got back from Japan, some anonymous person suggested that =
[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 and said he had never witnessed cocaine =
use by Mr. Spence or others at the parties.=20

      A spokeswoman for Compaq, which is based in Houston, said =
yesterday that the firm had no record of any contact with Mr. Spence. =
She said, however, that there had been dealings with Mr. Bishop's law =
firm, but she declined to say what they were.=20

      By Monday, Mr. Spence's flash had been replaced by the grim =
residue of his recent three-day stay in a New York City jail and a =
fitful night on a Central Park bench during which, he said, muggers had =
lifted the last few dollars he'd borrowed from a friend.=20

      Located by reporters at the stylish apartment of a friend near =
Central Park, Mr. Spence first resisted, then relished describing his =
career.=20

      After initial jobs in Massachusetts politics and as a =
correspondent for ABC News in Vietnam, Mr. Spence began focusing on Far =
Eastern affairs, he said.=20

      Mr. Spence said his "genius" was in recognizing before other U.S. =
observers that Japan was headed for economic greatness and in being able =
to identify and help Japanese Diet members on the way up.=20

      "I became a very significant intellectual force in Japan," he said =
with typical braggadocio. "I created three members of the Japanese Diet. =
It's called perspicuity. I saw a future prime minister in an obscure =
little man named [Yasuhiro] Nakasone when all our spastics here didn't =
see that."=20

      Mr. Spence claimed he coached Mr. Nakasone on dealing with the =
United States, advising him to buy President Reagan a saddle for a =
present rather than golf clubs and always to mention the former =
president's movies just before the press was admitted for photo =
opportunities to ensure the two would be engaged in animated =
conversation.=20

      Among his achievements, Mr. Spence said, was producing a =
"brilliant" position paper that persuaded the Japanese to allow the =
Palestine Liberation Organization to open an office in Tokyo.=20

      He also said he greatly enhanced the reputation of Motoo Shiina, a =
powerful member of the Diet, Japan's parliament, who is considered =
Japan's top expert on defense issues and a likely future prime minister. =


      "Motoo's father, Etsusburo, who was a great man, asked me to help =
his son, who he saw as playboy," Mr. Spence said. "I made Motoo Shiina =
in the United States, then he sued me."=20

      The lawsuit over a house on Wyoming Avenue NW, in a fashionable =
neighborhood of homes of senior diplomats, began when Mr. Shiina sought =
the return of $345,000 he had lent Mr. Spence to purchase the property. =
Eventually, the suit would be dropped on the day Mr. Shiina was to give =
a sworn deposition.=20

      The settlement terms led to Mr. Spence's company's getting $68,000 =
from the Policy Studies Group headed by Mr. Shiina. Mr. Spence agreed to =
repay Mr. Shiina $379,000 at 5 percent interest.=20

      The money was repaid when Mr. Spence sold the house for $900,000, =
and he kept the approximately $500,000 profit.=20

      Mr. Spence said yesterday that he had forced Mr. Shiina's =
attorneys to drop the suit by threatening to reveal that the money was =
"hot."=20

      "The money came into the country illegally from Hong Kong, and I =
knew it," he said. "That's why I could be so sarcastic in my deposition. =
I knew they wouldn't push it."=20

      Mr. Shiina has denied any wrongdoing in the case. He has =
specifically denied any violations of currency exchange laws.=20

      Mr. Spence said he later turned his lobbying talents to China, =
with the intention of establishing high-level influence there. "They =
have no money. What were they going to pay me with - rice?" he asked. "I =
did it to make contacts."=20

      Throughout this period, Mr. Spence admitted to leading a =
dual-level existence, with separate but strong excitements.=20

      On the surface, he threw dazzling parties and weighty seminars, =
ensnaring Washington celebrities.=20

      A profile of Mr. Spence in The New York Times in January 1982 was =
headlined "Have Names, Will Open Right Doors." The article quoted a =
Washington Post columnist saying of Mr. Spence in 1980: "Not since Ethel =
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

      One former friend, William Harben, said of those days: "He conned =
people into going to parties - big people, Cabinet members, and =
personalities and so forth. Everybody likes to go to a free party around =
here."=20

      That description eerily paralleled Mr. Spence's depiction of the =
guests at his soirees. "The town [Washington] is full of phonies," he =
said Monday. "All of these people I helped have turned on me."=20

      The business was lucrative. Mr. Spence earns $200,000 a year as a =
consultant for Becton, Dickinson & Co., a New Jersey-based firm that =
makes health care products for physicians, laboratories, pharmacies and =
the general public. He has worked for the firm since the fall of 1981 =
and, according to a Becton, Dickinson spokesman, is under contract until =
March 1990.=20

      In documents filed with the Justice Department, Mr. Spence said he =
made $666,774 working for the Policy Study Group, a company of which Mr. =
Shiina was president between 1979 and 1983.=20

      He made many thousands more for other foreign and domestic =
companies but said Monday that he had no access to money. He said his =
accounts had been "frozen" but refused to elaborate.=20

      Mr. Spence admitted Monday to a second lifestyle he kept hidden =
from most, in which he pursued young "military-looking" men. He bragged =
of many sexual conquests of otherwise straight men, including several =
servicemen stationed in the Washington area.=20

      Mr. Spence said he discovered he had AIDS "about three years ago" =
after going to Johns Hopkins Medical Center on the advice of his doctor. =


      GRAPHIC: Box, On the trail of Craig J. Spence
    =20




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

  Sex sold from congressman's apartment; Frank's lover was 'call boy'=20
      Paul M. Rodriguez and George Archibald The Washington Times; Part =
A; Pg. A1 August 25, 1989, Friday, Final Edition

      A male escort ran and provided homosexual and bisexual =
prostitution services from a U.S. congressman's house on Capitol Hill on =
a periodic basis from late 1985 through mid-1987, The Washington Times =
has learned.=20

       =20
--------------------------------------------------------------------
            "I had instructed him [Davis] not to use my apartment for =
his illegitimate purposes ... It just never occurred to me that he'd =
bring people over. I guess I was lied to."=20
--------------------------------------------------------------------
          =20
      "I had reason to believe that he might be trying to do that," said =