🚀 go-pugleaf

production of=20
      the FSX jet fighter.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>The magazine noted that =
stories=20
      surfaced in Japan that the technical data of the F-16 was leaked =
to the=20
      Soviet Union by "the son of an influential Japanese politician." =
No name=20
      was given, but the magazine followed with a description of Mr. =
Shiina's=20
      father, the late Etsusaburo Shiina, who was a former LDP kingmaker =
and=20
      holder of several key Cabinet posts.</B></SPAN>=20
      <P>But Mr. Ito said yesterday, "Any charges that he is soft on the =
Soviet=20
      Union doesn't add up in my opinion. He's always speaking out about =
the=20
      Soviet buildup in Northeast Asia."=20
      <P>Mr. Ito also said, "Mr. Shiina is regarded as well-informed on =
foreign=20
      affairs and defense matters and has been known to criticize both =
ruling=20
      and opposition members for talking nonsense on those subjects in =
the=20
      Diet."=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2>Mr. Imai said =
political circles=20
      around Nagatacho - the Tokyo area akin to Washington's Capitol =
Hill - are=20
      talking more and more these days about stories in The Washington =
Times=20
      about Mr. Spence and Mr. Shiina.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>He said some rumors hold =
that the=20
      Central Intelligence Agency cooked up the whole thing to discredit =
Mr.=20
      Shiina.</B></SPAN>=20
      <P>"I hope Mr. Shiina is not such a bad guy as was described in =
recent=20
      Japanese periodicals' reports," said Mr. Imai. "It has been =
believed that=20
      he will sooner or later become foreign minister. But because of =
this=20
      scandalous news, he may have some difficulties in reaching a =
Cabinet post=20
      or beyond.=20
      <P>"The news that Mr. Shiina was closely associated with Mr. =
Spence was=20
      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=20
      elections for which they are waging an unprecedentedly defensive=20
      campaign," he said.=20
      <P>An article profiling Mr. Shiina published 10 years ago in The =
Daily=20
      Yomiuri English-language newspaper began:=20
      <P>" 'What should I say about myself?' he asks smilingly, taking a =
slow,=20
      deep drag at his cigarette between sips of hot, steaming coffee =
which=20
      Hideko, his charming wife, had served. Meanwhile, outside, the =
gently=20
      falling snow had blanketed Shiina's quite ample garden, giving up =
an=20
      impression of serene quiet.=20
      <P>"In his well-modulated voice, Motoo talked of what he calls his =

      'humble' existence.=20
      <P>"Not so, for this diminutive (5 feet, 5 inches) man has been =
his=20
      father's active and devoted campaigner for a number of years. His =
father=20
      is Etsusaburo Shiina, former vice-president of the ruling=20
      Liberal-Democratic Party, Diet member, ex-Minister of Foreign =
Affairs,=20
      ex-Minister of International Trade and Industry (MITI) and =
ex-Minister of=20
      Finance."=20
      <P>The article said Mr. Shiina spent his campus days at Nagoya =
University,=20
      graduating in 1954 with a major in nuclear physics, a field in =
which he=20
      was awarded a scholarship by the U.S. State Department for =
one-year's=20
      study of nuclear reactors at the Argonne National Laboratory in =
Chicago.=20
      <P>Leaving his infant daughter behind with his mother, a friend =
was found=20
      to sponsor Hideko's stay in the United States. "It was quite tough =
for=20
      both of us, but somehow we managed," he told The Daily Yomiuri, =
crediting=20
      his success to his wife's devotion and care.=20
      <P>On his return to Japan in 1954, the younger Shiina set up his =
own=20
      company which manufactures precision instruments. He founded two =
other=20
      companies, one a joint venture with an American firm, according to =

      newspaper reports that provided no additional details.=20
      <P>Mr. Shiina's lawyer said yesterday of his client's business =
affairs,=20
      only that he resigned as an officer of the Tokyo-registered =
company=20
      Samutaku Co. Ltd. on becoming a Diet member in 1979 but still =
holds a=20
      large number of shares in the company and remains an adviser.=20
      <P>In addition, Mr. Shiina in 1979 was a board member of two =
non-profit=20
      organizations - the World Economic Information Service and the =
Asian Club,=20
      the latter funded by MITI.=20
      <P>Mr. Shiina told a reporter at the time that World Economic =
Information=20
      Service collates and studies economic information from all over =
the world=20
      for the guidance of the Japanese government and business world."=20
      <P>The Asian Club, established in 1975, aimed at "promoting =
economic=20
      goals." Mr. Shiina told an interviewer prior to his first election =
that he=20
      devoted much time to a private organization called Participation =
which=20
      sent out Japanese artists and musicians to various Southeast Asian =

      countries.=20
      <P>On July 5, The Washington Times published a story describing =
<SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>a business deal between Mr. =
Shiina and Mr.=20
      Spence in which the latter made more than $700,000 in four years =
working=20
      for Mr. Shiina's Policy Study Group.</B></SPAN>=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Mr. Spence also bought a =
Kalorama=20
      house using cash loaned to him by Mr. Shiina. When he refused to =
pay back=20
      the loan, Mr. Shiina sued.</B></SPAN>=20
      <P>* Special correspondent Hiroyasu Tomaru contributed to this=20
      report.</P></FONT></TD></TR></TBODY></TABLE>
<HR>
<FONT size=3D2><B>Not for commercial use. Solely to be used for the =
educational=20
purposes of research and open discussion.</B></FONT>=20
<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>First lady not worried about hookers' tour of White =
House=20
      </B></CENTER></FONT><FONT color=3D#000000 size=3D2>
      <CENTER><B>Paul Bedard The Washington Times; Part A; WORLD; Pg. =
A10 July=20
      10, 1989, Monday, Final Edition</B></CENTER>
      <P>WARSAW, POLAND<BR></FONT><FONT face=3Darial color=3D#3366cc=20
      size=3D4><B>F</B></FONT><FONT color=3D#000000 size=3D2>irst lady =
<SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>Barbara Bush said yesterday that =
the Secret=20
      Service investigation of a late night White House tour that =
reportedly=20
      included two male prostitutes has not raised security questions =
the first=20
      family is worried about.</B></SPAN>=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>Mrs. Bush added that =
"I'm not into=20
            all of this" and said it was "good" that The Washington Post =
wasn't=20
            following The Times' story.</B></FONT>=20
            <HR>
          </TD></TR></TBODY></TABLE>Speaking publicly for the first time =
about the=20
      July 3, 1988, tour arranged by former Washington lobbyist Craig J. =
Spence,=20
      Mrs. Bush said she and her husband have no fears of a security =
breach.=20
      <P>"Not at all," she told reporters on Air Force One shortly after =
it took=20
      off from Andrews Air Force Base en route here for the first leg of =
a=20
      10-day European trip by President Bush.=20
      <P>Mrs. Bush, noting that she reads all of the stories printed in =
the=20
      Daily Press Summary, a half-inch thick digest of stories in the =
print and=20
      electronic media, said the reports about the scandal uncovered by =
The=20
      Washington Times haven't alarmed her.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"There haven't been a =
lot of=20
      stories in our house about it," she said.</B></SPAN>=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2><SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>Mrs. Bush added that "I'm not =
into all of=20
      this" and said it was "good" that The Washington Post wasn't =
following The=20
      Times' story.</B></SPAN>=20
      <P>Ever since The Times first reported the tour on June 29, the =
White=20
      House has avoided comment. Last week, Treasury Secretary Nicholas =
Brady,=20
      who heads the Secret Service, reluctantly confirmed reports of a =
Secret=20
      Service investigation.=20
      <P>Presidential spokesman Marlin Fitzwater said the service hasn't =
raised=20
      security concerns for the White House as a result of the probe.=20
      <P>White House officials have said that the midnight tours such as =
those=20
      arranged for Mr. Spence do not threaten the First Family's =
security=20
      because they are allowed only in office areas and not the =
residence.=20
      <P>The tours for Mr. Spence, who has been linked to a federal=20
      investigation of a Washington homosexual prostitution ring that =
catered to=20
      government, media and business officials, were set up by Reginald =
A.=20
      deGueldre, a uniformed White House officer who moonlighted as the=20
      lobbyist's bodyguard.=20
      <P>Mr. Fitzwater said the Secret Service is "looking into the =
action" of=20
      the officer.=20
      <P>White House officials have said any staff member with the =
proper=20
      credentials such as those held by Mr. deGueldre can give private =
tours,=20
      and after-hours tours are encouraged because they don't disturb =
those=20
      working during the day. The tours commonly include a view of the =
Oval=20
      Office.=20
      <P>"I think they've [The Times] overblown the White House angle. =
No one=20
      knows who these guys are," said one administration official, =
referring to=20
      the associates of Mr. Spence named so far in The Times.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>But, he added, the White =
House=20
      continues to closely follow the=20
story.</B></SPAN></P></FONT></TD></TR></TBODY></TABLE>
<HR>

<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>Secret Service furloughs third White House guard=20
      </B></CENTER></FONT><FONT color=3D#000000 size=3D2>
      <CENTER><B>Jerry Seper, and Michael Hedges The Washington Times; =
Part A;=20
      NATION; Pg. A3 July 26, 1989, Wednesday, Final =
Edition</B></CENTER>
      <P><BR></FONT><FONT face=3Darial color=3D#3366cc =
size=3D4><B>T</B></FONT><FONT=20
      color=3D#000000 size=3D2>he Secret Service, looking into possible =
security=20
      breaches at the White House during late-night tours arranged by =
former=20
      Washington lobbyist Craig J. Spence, has placed a third White =
House guard=20
      on administrative leave.=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>The June 29 tour, =
according to=20
            several of Mr. Spence's friends, occurred after the =
Washington=20
            lobbyist visited the ABC television studios of Nightline and =

            introduced a 15-year-old boy, identified as his son, Will, =
to=20
            anchorman Ted Koppel.</< b> </B></FONT><B>
            <HR>
            </B></TD></TR></TBODY></TABLE>Secret Service officials also =
interviewed a=20
      captain on the White House security detail for more than seven =
hours over=20
      the weekend, although he remains on the job, according to law =
enforcement=20
      officials.=20
      <P>The reason for the lengthy questioning of Capt. Joseph Shober - =
four=20
      hours Saturday and three hours Sunday - was not immediately known, =
and=20
      Capt. Shober was not available yesterday for comment.=20
      <P>He was the supervisor of Officer Reginald A. deGueldre and the =
other=20
      suspended officers during the period when the late-night White =
House=20
      tours, including one July 3, 1988, that reportedly included two =
male=20
      prostitutes, occurred, officials said.=20
      <P>The uniformed Secret Service officer who was placed on =
administrative=20
      leave Monday night, whom Secret Service spokesman Rich Adams =
refused to=20
      identify, worked some of the same midnight shifts as Officer =
deGueldre and=20
      another uniformed guard placed on administrative leave last week.=20
      <P>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=20
      internal matter and beyond that I just can't comment," he said. =
"It is an=20
      ongoing investigation, and we are talking to a number of people. =
Just=20
      because we're talking to someone does not make them a subject of =
the=20
      investigation."=20
      <P>The Secret Service investigation, authorities said, is aimed at =

      determining if White House security was breached during late-night =
tours=20
      arranged by Mr. Spence and attended by several of his friends.=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2><SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>One law enforcement official said =
that,=20
      while many Secret Service officers and others have taken relatives =
and=20
      friends through the White House on special tours, they usually =
occur=20
      between 7 p.m. and 9 p.m., and that 1 a.m. tours - as arranged by =
Mr.=20
      Spence - are "totally out of the ordinary."</B></SPAN>=20
      <P>Officer deGueldre has acknowledged knowing Mr. Spence and =
attending=20
      parties the Washington lobbyist held at his Wyoming Avenue =
mansion. The=20
      officer also admitted during interrogation by the Secret Service,=20
      according to an affidavit filed in U.S. District Court, that he =
removed=20
      valuable china and other items from the White House, some of which =
ended=20
      up in Mr. Spence's house.=20
      <P>Officer deGueldre also told The Washington Times he had =
accepted an=20
      $8,000 gold Rolex watch from Mr. Spence. It is not clear what Mr.=20
      deGueldre did for Mr. Spence, if anything, or what favors might =
have been=20
      expected.=20
      <P>The officer has denied any wrongdoing.=20
      <P>Mr. Spence's name surfaced following a Feb. 28 raid by the =
Secret=20
      Service, Metropolitan Police and U.S. marshals on a house at 6004 =
34th=20
      Place NW, where a homosexual prostitution ring was operating. =
Credit card=20
      vouchers showed that the lobbyist, who has worked as a registered =
foreign=20
      agent for various Japanese organizations, spent as much as $20,000 =
a month=20
      on call boy services.=20
      <P>Mr. Spence has not been available for comment.=20
      <P>Alleged credit card fraud involving a number of escort services =
that=20
      sent male prostitutes to the 34th Place house is currently under=20
      investigation by the office of U.S. Attorney Jay Stephens. Mr. =
Stephens=20
      has declined to discuss the matter.=20
      <P>The Secret Service has jurisdiction over credit card crimes.=20
      <P>According to several people who were on the White House tours =
arranged=20
      by Mr. Spence, the Washington lobbyist put together at least four =
tours of=20
      the presidential mansion last year, two of which - June 29 and =
Nov. 22 -=20
      he attended personally.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>The June 29 tour, =
according to=20
      several of Mr. Spence's friends, occurred after the Washington =
lobbyist=20
      visited the ABC television studios of Nightline and introduced a=20
      15-year-old boy, identified as his son, Will, to anchorman Ted=20
      Koppel.</B></SPAN>=20
      <P>Several of the persons who went on the White House tours have =
been=20
      interviewed by the Secret Service about Mr. deGueldre and Mr. =
Spence.=20
      <SPAN style=3D"BACKGROUND: #7fffd4"><B>Those interviewed said =
investigators=20
      were concerned about possible security breaches and about Mr. =
Spence's=20
      connections to well-placed military and government officials, but =
that the=20
      agents did not elaborate.</B></SPAN>=20
      <P>One tour participant said some of the items allegedly taken out =
of the=20
      White House by Mr. deGueldre might have been smuggled out during =
at least=20
      one of the Spence-arranged tours. The participant said Mr. =
deGueldre=20
      handed over a sealed box containing "somethign that rolled around" =
and=20
      asked that it be hand-delivered to Mr.=20
Spence.</P></FONT></TD></TR></TBODY></TABLE>
<HR>

<P><!--begin text--><A href=3D"http://prorev.com/bush.html">A portion of =
the=20
editorial said: ''One child, who has been under psychiatric care, is =
said to=20
believe that she saw George Bush at one of King's parties. This is the =
same=20
person whose story of a severed head was looked into. Neither tale could =
be=20
verified.''</A>=20
<P>That sounds familiar, Satanism, child abuse, and grave desecration is =
not=20
new.... We hear about it in the news and we see some kid dressed in =
black with=20
suicidal lyrics.. but where did they learn this behaviour?=20
<P><!--end text-->
<HR>

<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>SEX PARTY HELD AT AUSSIE EMBASSY 'WE'RE NOT TALKING =
CROCODILE=20
      DUNDEE HERE' </B></CENTER></FONT><FONT color=3D#000000 size=3D2>
      <CENTER><B>Michael Hedges and Jerry Seper Washington Times; Final =
Section:=20
      A Page: A1 Friday, July 28, 1989</B></CENTER>
      <P><BR></FONT><FONT face=3Darial color=3D#3366cc =
size=3D4><B>T</B></FONT><FONT=20
      color=3D#000000 size=3D2>hree female <SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>prostitutes took part in a sex =
party at the=20
      Australian Embassy in November that included several members of =
the=20
      embassy staff, according to one of the women involved who worked =
for an=20
      escort service now under federal investigation.</B></SPAN>=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>She said she had been =
to Mr.=20
            Spence's house on at least four occasions and that during =
each visit=20
            she had sex with young soldiers whom Mr. Spence bragged he =
was=20
            blackmailing</B></FONT>=20
            <HR>
          </TD></TR></TBODY></TABLE>The prostitutes had sex with at =
least three men=20
      each during the party that lasted a little longer than three =
hours, said=20
      the woman. She said she was paid $800 in "crisp, new $100 bills" =
after the=20
      job.=20
      <P>The young blonde former prostitute, who asked that she not be=20
      identified, described the men she had sex with as middle-aged, =
adding,=20
      "We're not talking Crocodile Dundee here."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>The escort service which =
employed=20
      the woman is one of several tied to a Washington area homosexual=20
      prostitution ring that serviced officials of the Reagan and Bush=20
      administrations, military officers, media representatives, =
lawyers,=20
      businessmen and others.</B></SPAN>=20
      <P>The former prostitute also said she had sexual encounters with =
U.S.=20
      military personnel at the behest of former Washington lobbyist =
Craig J.=20
      Spence, a major client of the male call-boy ring, and with a =
high-ranking=20
      Canadian diplomat at his waterfront Georgetown home.=20
      <P>She provided details about her jobs, including the names of =
some=20
      clients, which have been confirmed by The Washington Times.=20
      <P>Both the diplomat and one of Mr. Spence's soldier-bodyguards =
have=20
      admitted they had sex with the woman under the exact circumstances =
she=20
      described.=20
      <P>The U.S. Attorney's Office is probing alleged credit card fraud =

      involving the escort services, and the Secret Service is looking =
into=20
      possible security breaches that may have occurred during =
late-night tours=20
      of the White House arranged by Mr. Spence for his friends. Two =
male=20
      prostitutes went on one of the tours, according to a person who=20
      participated in the 1 a.m. White House walk-through.=20
      <P>The former prostitute, who was interviewed on several occasions =
by The=20
      Times, described in detail paid sexual meetings with foreign =
diplomats,=20
      both in their homes and in Massachusetts Avenue embassies, =
scheduled=20
      through Jet Set, the escort service which the woman said supplied =
the=20
      Australian Embassy party.=20
      <P>The woman said that during the late afternoon November embassy =
party,=20
      the group, which included the two other women she came with, a few =
other=20
      women she believed were prostitutes and a dozen or more men, met =
in one=20
      large office-type room.=20
      <P>"The men I had sex with took me one at a time into a smaller =
room=20
      nearby which was like an office, it had office-type furniture," =
the woman=20
      said.=20
      <P>The men never identified themselves beyond first names, she =
said.=20
      "There wasn't a lot of small talk. We were there for one thing."=20
      <P>The woman also described the interior of the embassy, correctly =
gave=20
      its address and location on Massachusetts Avenue, and depicted the =

      furnishings of the room where she said the sex occurred.=20
      <P>Australian Embassy officials, when told on July 6 of the =
woman's=20
      allegations concerning the party, originally said they would turn =
the=20
      information over to U.S. Attorney Jay Stephens for a full =
investigation.=20
      <P>However, John McCarthy, minister of congressional liaison for =
the=20
      embassy, said during a second interview with The Times that he and =
his=20
      staff had conducted an extensive internal investigation - =
coordinated by=20
      Australian Federal Police stationed at the embassy - and, while =
not ruling=20
      out the possibility that the November affair had occurred, had =
concluded=20
      that the woman's story was "improbable."=20
      <P>A report of that investigation concluded, "We cannot completely =
exclude=20
      that a clandestine function did occur, but our investigations have =
made=20
      clear that it would have required a great deal of planning =
beforehand to=20
      gain entry surreptitiously."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>The report said, "The =
embassy's=20
      investigations produced no corroboration of the =
allegations."</B></SPAN>=20
      <P>An Australian television station, informed of the woman's =
charges by=20
      The Times, met with the former prostitute and determined that her =
story=20
      was valid. A story concerning the allegations ran yesterday on an=20
      Australian network news program.=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2>"I saw no good reason =
to=20
      disbelieve her story," said Tony Coghlan, the Network Ten bureau =
chief in=20
      New York City who interviewed the former prostitute. "She came to =
us in=20
      good faith and didn't ask to be paid.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"I talked with her at =
great length=20
      and grilled her about the incident and the embassy. It was my =
feeling she=20
      was telling the truth," he said.</B></SPAN>=20
      <P>Mr. Coghlan said the factors which led to the embassy staff =
concluding=20
      the episode probably did not occur did not impress him, and that =
he found=20
      the woman's depiction of the event consistent with his knowledge =
of the=20
      embassy and Australian customs.=20
      <P>Neale Prior, a reporter for the Sydney Morning Herald, said his =

      newspaper published a story yesterday recounting the television =
report. He=20
      said the paper planned a follow-up account in today's editions.=20
      <P>"This story has only broken in Australia four hours ago," Mr. =
Prior=20
      said yesterday. "If more comes out on it, there will be a big =
reaction=20
      here."=20
      <P>Yesterday, Brett Bayly, press officer at the embassy, said, =
"Frankly,=20
      we're just puzzled. We haven't been able to take it any further."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Kunjurit "Dennis" Singh, =
the man=20
      who operates the Jet Set escort service, admitted that the three =
women=20
      worked for the service during 1988,</B></SPAN> but he declined to =
name=20
      specific jobs on which they were dispatched.=20
      <P>"This is confidential, like a dating service," Mr. Singh said. =
"I can't=20
      tell you who was dating whom."=20
      <P>He said the men and women working for him were paid only to =
spend time=20
      with clients, adding that he was unaware of any illegal sexual =
activities=20
      which occurred on these dates.=20
      <P>One of the prostitutes employed by Mr. Singh said she was given =
a W-2=20
      form at the end of the year listing her job as "escort."=20
      <P>The former prostitute provided names of some of her embassy =
clients,=20
      including a key official at the Canadian Embassy for whom she said =
she was=20
      hired for sex at his Georgetown house.=20
      <P>The Canadian official originally denied the encounter. But =
after he was=20
      provided with detailed information about himself, his habits and =
his=20
      Georgetown home - all described by the former prostitute - he said =
his=20
      personal life was "none of the newspaper's business" and asked =
that his=20
      name not be used to spare him embarrassment.=20
      <P>Wesley Pruden, managing editor of The Times, said when the =
newspaper=20
      first broke the sex ring story that names of participants would =
not be=20
      made public unless their involvement appeared to compromise U.S. =
or=20
      friendly nation security.=20
      <P>The former prostitute, who has taken a legitimate job and said =
she has=20
      put her past behind her, also in a relatively brief period had =
sexual=20
      liaisons with a number of wealthy businessmen while working for an =
escort=20
      service at 34th Place NW, which federal authorities raided in =
February,=20
      according to her recollections and diaries she kept at the time.=20
      <P>The service was one of several that, according to federal =
authorities=20
      and others, accepted cash, checks and credit cards to pay for =
prostitution=20
      activities - from both men and women.=20
      <P>The former prostitute said she had worked on numerous occasions =
for Mr.=20
      Spence, the once powerful Washington lobbyist whose name has =
surfaced in=20
      the probe of the homosexual prostitution ring. <SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>She said she had been to Mr. =
Spence's house=20
      on at least four occasions and that during each visit she had sex =
with=20
      young soldiers whom Mr. Spence bragged he was =
blackmailing.</B></SPAN>=20
      <P>One of the soldiers, now working on a prestigious detail at =
Fort Myer,=20
      admitted he worked for Mr. Spence, and also that he spent time =
with a=20
      female prostitute while at Mr.Spence's Massachusetts Avenue =
apartment. He=20
      said he was paid several hundred dollars to provide security at =
various=20
      parties Mr. Spence hosted.=20
      <P>The former prostitute said on one occasion Mr. Spence forced =
her to=20
      take a bath with two men and him, which degenerated into "an =
unhappy=20
      outing."=20
      <P>The woman said that one of the soldiers contacted her a few =
months=20
      after the bathtub incident and told her Mr. Spence had shown =
pictures of=20
      them having sex to the soldier's wife and that it led to a =
separation.=20
      <P>The soldier told her that Mr. Spence initially blackmailed him =
into=20
      "beating up a couple guys" to keep his wife from finding out, she =
said.=20
      But Mr. Spence "burned him anyway" because the soldier refused to =
have sex=20
      with him, the woman said.=20
      <P>Photo, The Australian embassy in Washington., By The Washington =

      Times</P></FONT></TD></TR></TBODY></TABLE>
<P><!--end text-->
<HR>

<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>SPENCE ELUSIVE, SAID TO BE EVERYWHERE BUT=20
      ISN'T</B></CENTER></FONT><FONT color=3D#000000 size=3D2>
      <CENTER><B>Jerry Seper and Michael Hedges Washington Times, Final =
Section:=20
      A Page: A1</B></CENTER>
      <CENTER><B>Thursday, August 3, 1989</B></CENTER>
      <P><BR></FONT><FONT face=3Darial color=3D#3366cc =
size=3D4><B>W</B></FONT><FONT=20
      color=3D#000000 size=3D2>here in the world is Craig Spence?=20
      <P>A lot of people say they know, but the sightings of Mr. Spence, =
the=20
      mysterious Washington lobbyist who wined and dined the city's =
power elite=20
      while patronizing a call-boy ring now under U.S. investigation, so =
far are=20
      as reliable as the sightings of Elvis.=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>Some friends of Mr. =
Spence cling=20
            to the fanciful story - told often by the shadowy lobbyist - =
that he=20
            is on "one last desperate mission" for the CIA. He often =
predicted=20
            his own demise, cautioning friends not to take any account =
of his=20
            death at face value.</B></FONT>=20
            <HR>
          </TD></TR></TBODY></TABLE>He (Mr. Spence, not Elvis) was seen =
on a bus at=20
      28th and P streets last week.=20
      <P>Or the flamboyant Washington influence peddler recently made =
several=20
      appearances at a Georgetown disco - sans cape.=20
      <P>Or the man the U.S. Secret Service has sought - apparently=20
      unsuccessfully - to answer questions about midnight tours of the =
White=20
      House, is hiding out in a friend's New York City apartment.=20
      <P>Or he's curled up along a canal in Italy with his favorite =
book, "Death=20
      in Venice."=20
      <P>Or he's in Tokyo, sipping martinis with his favorite bartender, =

      Hirosumi Toyama, at the Tokyo Hilton.=20
      <P>Or he's at his boyhood hometown, Boston - or was that in New =
Hampshire?=20

      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Or he's in the green =
room on the=20
      "Nightline" set at the ABC-TV studios in Northwest, waiting to be=20
      interviewed by his longtime friend, Ted Koppel.</B></SPAN>=20
      <P>One member of Washington's netherworld, a procurer of =
prostitutes who=20
      claimed to have subcontracted lots of work for Mr. Spence, says he =
knows=20
      for a fact that Mr. Spence has been staying in Clearwater, Fla., =
with a=20
      Washington lawyer.=20
      <P>Reporters investigating that particular late-night tip lost =
enthusiasm=20
      when they found out the lawyer had died in January.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Some friends of Mr. =
Spence cling=20
      to the fanciful story - told often by the shadowy lobbyist - that =
he is on=20
      "one last desperate mission" for the CIA. He often predicted his =
own=20
      demise, cautioning friends not to take any account of his death at =
face=20
      value.</B></SPAN>=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2>A former college =
classmate of Mr.=20
      Spence's, who doesn't profess to know where he is, is nevertheless =
willing=20
      to speculate about what disguise he might be wearing.=20
      <P>The woman said she attended Boston University with Mr. Spence =
in the=20
      1960s and that for two years he faked an Australian accent, that =
only=20
      through recent press accounts did certain old friends learn that =
he had=20
      not been the Australian exchange student he said he was.=20
      <P>Recently, Secret Service agents investigating how Mr. Spence =
might have=20
      breached White House security with late-night tours searched with =
a=20
      warrant his Massachusetts Avenue apartment. The building manager =
said=20
      federal authorities had searched the apartment at least twice.=20
      <P>One tenant of the building reported agents were staking out the =
place=20
      and "looking very obvious." Nevertheless, the agency was said to =
have been=20
      consistently thwarted in its efforts to interview Mr. Spence.=20
      <P>Mr. Spence had led some of his friends to believe that he was =
seriously=20
      - perhaps even terminally - ill. To others, he fostered the image =
of a man=20
      pursuing one last main chance in the Far East or in Europe.=20
      <P>His recent activity was quite a departure from a man who once =
created=20
      the illusion of great influence.=20
      <P>When Mr. Spence resurfaces, he must deal with a federal =
investigation=20
      headed by the office of U.S. Attorney Jay Stephens. Mr. Stephens' =
office=20
      insists for the record it's an investigation of credit-card fraud. =

      <P>But other law enforcement authorities, among others, say the =
Secret=20
      Service was interested in Mr. Spence even before the February raid =
on a=20
      homosexual-prostitution ring headquarters that led to the =
capital's summer=20
      scandal.=20
      <P>One person the Secret Service questioned for more than three =
hours said=20
      <SPAN style=3D"BACKGROUND: #7fffd4"><B>investigators were =
"interested" in=20
      Mr. Spence's connections to well-placed government and military=20
      officials.</B></SPAN>=20
      <P>This person, one of six who took a July 1988 White House tour =
arranged=20
      by Mr. Spence, said Secret Service investigators indicated that =
their=20
      concern about the former lobbyist "did not result as an outgrowth =
of the=20
      February raid."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Questions asked by =
Secret Service=20
      investigators about Mr. Spence's activities were "not specifically =
and=20
      singularly tied to credit-card fraud," as suggested by Mr. =
Stephens. The=20
      service still won't talk about what it's doing.</B></SPAN>=20
      <P>While Mr. Spence has been a scarce commodity in the flesh, his =
spirit=20
      lingers among many of his friends.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Several say they have =
experienced=20
      a rash of hang-up calls at odd hours.</B></SPAN>=20
      <P>"It's what Craig used to do when he was upset with someone," =
said one=20
      friend. "It's classic behavior for =
him."</P></FONT></TD></TR></TBODY></TABLE>
<P><!--end text-->
<HR>

<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>SPENCE ARRESTED IN N.Y., RELEASED BIZARRE INTERVIEW IS =
NO NIGHT=20
      ON THE TOWN </B></CENTER></FONT><FONT color=3D#000000 size=3D2>
      <CENTER><B>Jerry Seper and Michael Hedges Washington Times; Final =
Section:=20
      A Page: A1 Wednesday, August 9, 1989</B></CENTER>
      <P>NEW YORK -<BR></FONT><FONT face=3Darial color=3D#3366cc=20
      size=3D4><B>H</B></FONT><FONT color=3D#000000 size=3D2>e must have =
thought he=20
      was still wearing his red-lined black cape, his wide-brimmed black =
felt=20
      hat and his trademark silk handkerchief dangling at a precise =
angle from=20
      his tailored Edwardian-cut suit.=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>"How do you think a =
little faggot=20
            like me moved in the circles I did?" Mr. Spence asked, his =
hand=20
            fondling the razor blade like the flesh of a lover. "It's =
because I=20
            had contacts at the highest levels of this =
government.</B></FONT>=20
            <HR>
          </TD></TR></TBODY></TABLE>His plain white knit shirt was =
wrinkled and=20
      soiled, with smudge marks on the back and shoulders from a night =
on a=20
      bench in Central Park. His high-top white Reebok athletic shoes =
were=20
      scuffed, his pants rumpled and loose.=20
      <P>With his belt missing, an unshaven Craig J. Spence - the =
onetime=20
      Washington lobbyist of the rich and powerful who is a focus of a =
federal=20
      investigation - kept tugging at his pleated khaki pants to keep =
them from=20
      falling down.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"Do you know who you are =
talking=20
      to?" he demanded in a loud voice as he moved his back along a wall =
of a=20
      friend's fashionable East Side apartment, his right hand tightly =
clutching=20
      a razor-blade dispenser from which he slid a double-edged blade. =
"Do you=20
      have any idea who I am?"</B></SPAN>=20
      <P>So began a rambling, eight-hour interview of Craig Spence, the =
object=20
      of a monthlong search by print and television reporters and agents =
of the=20
      the Secret Service. The interview ran from midafternoon Monday =
until=20
      shortly before midnight.=20
      <P>Federal authorities have been pursuing him as part of an =
investigation=20
      into allegations of credit-card fraud involving a Washington-based =

      homosexual prostitution ring he frequented and possible security =
breaches=20
      during late-night tours of the White House that he arranged.=20
      <P>After an initial and volatile discussion about suicide and a =
tense=20
      moment in a narrow hallway during which he menaced two reporters =
with the=20
      razor, <SPAN style=3D"BACKGROUND: #7fffd4"><B>Mr. Spence decided =
to hold=20
      court to "impart a few words of wisdom" and to "educate the =
unwashed"=20
      about journalism, politics, government operations, life and=20
      death.</B></SPAN>=20
      <P>"Death, you know, is only painful to the ones you leave =
behind," he=20
      said, congratulating himself on what he suggested was an excellent =
quote=20
      and encouraging the reporters to write it down. "As a matter of =
fact, I'm=20
      looking forward to it.=20
      <P>"At 48, I'll still look good in hell."=20
      <P>What followed was bizarre, highlighted by moments of brilliance =
and=20
      wit, outrageous and obnoxious behavior, unbridled and spontaneous =
humor,=20
      and profound and unrelenting bragging.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"How do you think a =
little faggot=20
      like me moved in the circles I did?"</B></SPAN> Mr. Spence asked, =
his hand=20
      fondling the razor blade like the flesh of a lover. <SPAN=20
      style=3D"BACKGROUND: #7fffd4"><B>"It's because I had contacts at =
the highest=20
      levels of this government.</B></SPAN>=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"They'll deny it," he =
said, his=20
      voice rising with anger. "But how do they make me go away, when so =
many of=20
      them have been at my house, at my parties and at my =
side?"</B></SPAN>=20
      <P>Mr. Spence's recollections of times past are filled with the =
names of=20
      many of Washington's powerful and those of influential men and =
women from=20
      other countries. Most of the claims are documented in dozens of =
filings at=20
      the Department of Justice, which are required of lobbyists who =
work for=20
      foreign governments.=20
      <P>What they all had in common, Mr. Spence said, was that they =
used him=20
      for their personal gain, and when things went bad, they forgot his =
name.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"I can't think of one =
person who=20
      hasn't benefited personally from knowing me," he said. "I had the =
world at=20
      my house, and now they don't know who I am."</B></SPAN>=20
      <P>During the interview, Mr. Spence picked continually at his nose =
and=20
      rubbed his finger across the outline of his shabby mustache. He =
snorted=20
      and coughed up mucus. He constantly rubbed his left eye until it =
was red,=20
      and he said his vision was blurred.=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2>He walked from chair =
to chair in=20
      the apartment, staying only briefly in each spot. He pointed, =
grabbed,=20
      poked and pushed at the reporters to make a point or to avoid a =
question.=20
      He intermittently leaned forward to strike out at his questioners =
and then=20
      leaned back in a defensive mode, lowering his body into whatever =
chair was=20
      at hand.=20
      <P>He refused to answer inquiries he deemed "stupid" and said =
several=20
      times he was going to "terminate" the interview, jumping out of a =
chair to=20
      run to the door. He nearly left on one occasion but couldn't =
figure out=20
      how the locks on the sturdy wooden door worked.=20
      <P>Mr. Spence threatened on four occasions to kill himself. He had =
planned=20
      to do so last week, he said, but New York City police had taken =
away his=20
      loaded 9mm handgun. "That's the great terminator," Mr. Spence =
said. "Just=20
      open your mouth and point to the rear."=20
      <P>The only suicide weapon he had left was the white plastic =
dispenser of=20
      cheap double-edged razor blades, which he displayed threateningly. =
He=20
      fingered the dispenser constantly throughout the interview, =
pushing one of=20
      the blades halfway out to create a knifelike effect.=20
      <P>"The man who cuts himself across the veins is looking for =
help," Mr.=20
      Spence said, his right hand moving the razor slowly along his =
outstretched=20
      left arm. "The man who cuts down the vein is looking to die."=20
      <P>He pulled the razor along his arm lengthwise and smiled, then =
suddenly=20
      moved the thin blade to the chest of one of the two reporters and =
then to=20
      the other. There was silence for a few seconds, then he spoke.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"I am not a person to =
fool with.=20
      You should know that by now," Mr. Spence said.</B></SPAN>=20
      <P>His threat soon ended, however, when he remembered he hadn't =
eaten=20
      dinner. A mugger in Central Park, he said, had taken his last =
$100,=20
      borrowed the day before from a friend, who also had paid off the =
last $400=20
      of a $5,000 bill for three days in the penthouse at the Parker =
Meridien.=20
      His credit charges had exceeded the card's limit, and he had had =
no cash=20
      to make up the difference.=20
      <P>"I felt sorry for him," said the friend, who asked not to be=20
      identified.=20
      <P>The friend, in whose apartment the interview took place, later=20
      discovered that $300 stashed in a jewelry box was missing.=20
      <P>Once he arrived at a nearby restaurant, Ronasi Ristoranti =
Italiano, Mr.=20
      Spence's mood changed again. He became loud and demanding, =
ordering the=20
      waiters around with the snap of his fingers and shouting various=20
      vulgarities obviously aimed at shocking both the restaurant's =
employees=20
      and its patrons.=20
      <P>He issued cooking instructions to the chef and chastised the =
busboys=20
      for almost everything.=20
      <P>Mr. Spence, a frequent visitor to Italy, found nothing on the =
menu to=20
      his liking. He ordered a special pasta dish with red, white and =
green=20
      noodles - "just like the Italian flag, but you probably didn't =
know that,"=20
      he shouted at the waiter. He demanded minestrone soup, but only =
after=20
      being assured that the vegetables in it were fresh.=20
      <P>He complimented one of the reporters for his choice of wines, =
selected=20
      only because it happened to be the least expensive on the menu, =
and then=20
      proceeded to order three bottles of it.=20
      <P>While lecturing those at his table on proper etiquette, Mr. =
Spence=20
      spilled his wine, knocked over his water glass (which flooded his=20
      appetizer of baked clams) and blew his nose on the white linen =
tablecloth.=20

      <P>After ordering chocolate cake for dessert, he berated the =
waiter=20
      because the piece was too small. "I want to see something brown on =
this=20
      white plate," Mr. Spence shouted. "I see nothing here now." The =
waiter,=20
      quite unhappy at this point, cut another piece and returned it to =
the=20
      table. His waiter's benediction, "enjoy," seemed forced.=20
      <P>At the dinner's end, Mr. Spence borrowed $10 for cab fare to =
the Plaza=20
      Hotel on Central Park South, where he said he had left his =
luggage. He=20
      said he'd be available to continue the interview in an hour.=20
      <P>He disappeared into the night, not to be seen again.=20
      <P>=20
      <HR>

      <P>Photo, Craig J. Spence, By Peter Kolk/Special to The Washington =
Times=20
      <P>Photo, The Secret Service has searched Craig Spence's =
Massachusetts=20
      Avenue apartment twice to see if his late-night tours breached =
White House=20
      security., By Peter Kolk/Special to The Washington=20
  Times</P></FONT></TD></TR></TBODY></TABLE>
<P><!--end text-->
<HR>

<P>&nbsp;=20
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD vAlign=3Dtop width=3D"50%"><FONT face=3Darial color=3D#3366cc =
size=3D4>
      <CENTER><B>Spence arrested in N.Y., released; Once-host to =
powerful=20
      reduced to begging, sleeping in park </B></CENTER></FONT><FONT=20
      color=3D#000000 size=3D2>
      <CENTER><B>Michael Hedges, and Jerry Seper THE WASHINGTON TIMES; =
Part A;=20
      Pg. A1 August 9, 1989, Wednesday, Final Edition</B></CENTER>
      <P>NEW YORK<BR></FONT><FONT face=3Darial color=3D#3366cc=20
      size=3D4><B>C</B></FONT><FONT color=3D#000000 size=3D2>raig J. =
Spence, the=20
      once-powerful Washington lobbyist under scrutiny by the Secret =
Service for=20
      late-night White House tours and theft from the presidential =
mansion, was=20
      arrested here last week for carrying a loaded gun and crack =
cocaine.=20
      <P>&nbsp;=20
      <TABLE cellPadding=3D20 width=3D200 align=3Dleft border=3D0>
        <TBODY>
        <TR>
          <TD>
            <HR>
            <FONT face=3Darial color=3D#3366cc><B>Mr. Spence hinted the =
tours were=20
            arranged by "top-level" officials, including Donald Gregg, =
national=20
            security adviser to Vice President Bush and now =
ambassador-designate=20
            to South Korea.=20
            <P>"Who was it who got Felix Rodriguez [the CIA's former =
Costa Rica=20
            station chief, who became embroiled in the Iran-Contra =
affair] in to=20
            see Bush?"</B></FONT>=20
            <HR>
          </TD></TR></TBODY></TABLE>Mr. Spence, who has spent recent =
weeks prowling=20
      this city's finest hotels, cutting deals with inmates to protect =
himself=20
      in jail and eventually sleeping on a bench in Central Park, faces =
up to=20
      eight years in prison.=20
      <P>Monday, in a tense eight-hour interview with The Washington =
Times at a=20
      friend's apartment where reporters had tracked him, Mr. Spence =
said the=20
      discovery in 1986 that he had AIDS triggered his descent into =
using call=20
      boys and crack.=20
      <P>In a conversation that plumbed the depths of morbidity and =
self-pity,=20
      Mr. Spence caressed a shiny, double-edged razor blade he said he =
would=20
      ultimately use to kill himself and alluded frequently to his =
impending=20
      suicide, a move he said he would take before AIDS debilitates him. =

      <P>Asked how he thought he would be remembered in Washington, he =
quoted=20
      Carl Sandburg: "Does it matter in the dust and the cool tombs . . =
."=20
      <P>Mr. Spence said he left Washington early in July after becoming =
aware -=20
      through news accounts - of the Secret Service investigation. He =
spent=20
      several nights in expensive hotels in New York, rapidly spending =
his=20
      diminishing funds, according to hotel records and his account.=20
      <P>He was arrested July 31 at the Barbizon Hotel on East 63rd =
Street in=20
      Manhattan. According to police records, police took Mr. Spence =
into=20
      custody after a disturbance there. A loaded 9mm pistol was seized, =
along=20
      with a small amount of crack.=20
      <P>He spent parts of the next three days in jail before being =
released on=20
      personal recognizance Aug. 2. He faces another hearing Aug. 28. =
Maximum=20
      sentences for the charges against him total eight years in prison. =

      <P>Mr. Spence's account of the episode considerably colored the =
drab prose=20
      of police reports. He said he had set up a meeting with a call boy =
who=20
      arrived with drugs.=20
      <P>When the male escort attempted to steal $10,000 in cash and =
traveler's=20
      checks from his room, according to Mr. Spence and police reports, =
Mr.=20
      Spence started the ruckus that led to the arrest.=20
      <P>"They put me in the Tombs [slang for the New York jail] for =
three days=20
      without a phone call," Mr. Spence said. "I survived by offering to =
be the=20
      valet to the biggest thug there, a man appropriately named Heavy, =
and=20
      giving him half my bologna sandwich. I had to teach him not to =
pronounce=20
      it 'val-ay' like some parking attendant."=20
      <P>Mr. Spence, who is central to an investigation into the theft =
of Truman=20
      administration china from the White House and a male call-boy ring =
raided=20
      in February by D.C. police and federal agents, has eluded Secret =
Service=20
      agents and reporters since his dealings were first reported by The =
Times=20
      on June 29.=20
      <P>Mr. Spence, 48, who is being sought by the Secret Service to =
testify=20
      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=20
      uniformed Secret Service Officer Reginald deGueldre. Officer =
deGueldre and=20
      another officer were suspended without pay last week as a result =
of the=20
      ongoing White House investigation.=20
      <P>"Reggie couldn't have arranged anything," Mr. Spence said. =
"Poor Reggie=20
      is a nice guy. I gave him a Rolex watch unsolicited, and he later =
gave me=20
      this little 'dish,' as Rosalyn Carter would say, out of the Truman =
china.=20
      I didn't ask for it.=20
      <P>"Reggie's like an elevator operator pushing the buttons. But he =
is not=20
      the guy who can clear it for you to get in the elevator."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Mr. Spence hinted the =
tours were=20
      arranged by "top-level" officials, including Donald Gregg, =
national=20
      security adviser to Vice President Bush and now =
ambassador-designate to=20
      South Korea.</B></SPAN>=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"Who was it who got =
Felix=20
      Rodriguez [the CIA's former Costa Rica station chief, who became =
embroiled=20
      in the Iran-Contra affair] in to see Bush?" Mr. Spence asked when =
pressed=20
      to say who got him inside the White House. He agreed that he was =
alluding=20
      to Mr. Gregg.</B></SPAN>=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Mr. Gregg yesterday =
dismissed the=20
      allegation as "absolute bull." Vacationing in Delaware, Mr. Gregg =
said the=20
      only time he met Mr. Spence - at an April party the lobbyist =
arranged for=20
      former South Korean Prime Minister Nam Duc Woo - he found him to =
be "a=20
      thoroughly unpleasant character."</B></SPAN>=20
      <P>"It disturbs me that he can reach a slimy hand out of the sewer =
to grab=20
      me by the ankle like this," Mr. Gregg said. "The allegations are =
totally=20
      false."=20
      <P>Mr. Spence said all of the parties he held at his Kalorama home =
were=20
      bugged by "friendly" intelligence agents.=20
      <P>He described in detail how he rigged his apartment with =
listening=20
      devices in electrical outlets in the walls after he was approached =
by an=20
      intelligence agency that he refused to identify.=20
      <P>"They basically just wanted to be sure that nothing was being =
said that=20
      shouldn't be said," he said.=20
      <P>He boasted that he had "created" important Japanese =
politicians,=20
      conducted covert operations for Central American governments and =
traveled=20
      in a circle of high-ranking closet homosexuals in Washington. He =
said he=20
      would not identify homosexuals in the Bush administration.=20
      <P>"I'm not going to smear the Republican Party," he said.=20
      <P>Mr. Spence described other midnight White House tours, =
including one he=20
      said he arranged for a group of powerful Japanese businessmen who, =
he=20
      said, photographed themselves in the Oval Office.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>He alluded frequently to =
even=20
      deeper mysteries. "All this stuff you've uncovered, to be honest =
with you,=20
      is insignificant compared to other things I've done. But I am not =
going to=20
      tell you those things, and somehow the world will carry on without =

      knowing," he said.</B></SPAN>=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>After he became aware of =
Secret=20
      Service interest in his activities, Mr. Spence said he destroyed =
audio=20
      tapes and hundreds of photographs, many obtained surreptitiously =
during=20
      his parties. By the time the Secret Service raided his apartment =
in July,=20
      he said all that was left behind was his AZT anti-AIDS=20
      medicine.</B></SPAN>=20
      <P>A Secret Service source confirmed that the agency served a =
search=20
      warrant at the Massachusetts Avenue apartment and that agents did =
in fact=20
      find vials of AZT.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Careening from the wit =
that had=20
      won him powerful friends to glum resignation that "my life is =
over," Mr.=20
      Spence reserved his deepest bitterness for former acquaintences =
who he=20
      said have now forsaken him. "I've had the world at my house and =
now they=20
      don't know who I am," he said. "But they did come, didn't=20
      they?"</B></SPAN>=20
      <P>Mr. Spence said that he frequently used call-boy services and =
that he=20
      liked "handsome young blond, 19-year-old boys," but he said he had =
not=20
      spent $20,000 a month for them, as reflected in credit card =
documents=20
      obtained by The Times. These charges were inflated illegally by =
one escort=20
      service manager, he said. He declined to elaborate but said he =
fired his=20
      accountant over the matter - although it was never turned over to=20
      authorities.=20
      <P>During his hour as a Washington host, Mr. Spence dressed in =
Edwardian=20
      finery and lived extravagantly, affecting touches such as =
scarlet-lined=20
      capes and stretch limousines.=20
      <P>&nbsp;</P></FONT>
    <TD vAlign=3Dtop width=3D"50%"><FONT size=3D2>Among those who =
frequented his=20
      parties were journalists Eric Sevareid, Ted Koppel and William =
Safire;=20
      former CIA Director William Casey; the late John Mitchell, =
attorney=20
      general in the Nixon administration; conservative activist Phyllis =

      Schlafly; then-Ambassador to Korea (now to China) James Lilley; =
and Gen.=20
      Alfred M. Gray, commandant of the Marine Corps.=20
      <P>Arnaud de Borchgrave, editor-in-chief of The Times, said he =
went to=20
      dinner once at Mr. Spence's home, to honor Mr. Lilley.=20
      <P>Even in recent months, Mr. Spence insisted, he retained enough =
cachet=20
      to set up large business negotiations such as one between the =
Washington=20
      law firm of Bishop, Cook, Purcell and Reynolds - represented by =
former=20
      U.S. Attorney Joseph diGenova - and a major computer manufacturer, =
Compaq.=20

      <P>He said influential persons such as Mr. diGenova, although =
aware of his=20
      increasing use of drugs, courted him for his network of business=20
      connections.=20
      <P>Mr. diGenova was in Hawaii yesterday and could not be reached =
for=20
      comment. A secretary, told of the nature of the inquiry, said she =
could=20
      not divulge Mr. diGenova's vacation telephone number. In earlier=20
      interviews, the former federal prosecutor said he went to Japan =
with Mr.=20
      Spence and Mr. Bishop in 1988 on business.=20
      <P>"When I got back from Japan, some anonymous person suggested =
that [Mr.=20
      Spence] might be using cocaine. Well, of course, my antennae went =
up right=20
      away and I checked those rumors out . . . and found much to my =
surprise=20
      that people suspected the worst," Mr. diGenova said.=20
      <P>At that point, Mr. diGenova said, he severed his relationship =
with Mr.=20
      Spence. "When you compared it to his other eccentric behavior, it =
made=20
      sense. But I had no evidence whatsoever," he said.=20
      <P>Mr. diGenova said he never took his concern that Mr. Spence =
might be=20
      using drugs to authorities and said he had never witnessed cocaine =
use by=20
      Mr. Spence or others at the parties.=20
      <P>A spokeswoman for Compaq, which is based in Houston, said =
yesterday=20
      that the firm had no record of any contact with Mr. Spence. She =
said,=20
      however, that there had been dealings with Mr. Bishop's law firm, =
but she=20
      declined to say what they were.=20
      <P>By Monday, Mr. Spence's flash had been replaced by the grim =
residue of=20
      his recent three-day stay in a New York City jail and a fitful =
night on a=20
      Central Park bench during which, he said, muggers had lifted the =
last few=20
      dollars he'd borrowed from a friend.=20
      <P>Located by reporters at the stylish apartment of a friend near =
Central=20
      Park, Mr. Spence first resisted, then relished describing his =
career.=20
      <P>After initial jobs in Massachusetts politics and as a =
correspondent for=20
      ABC News in Vietnam, Mr. Spence began focusing on Far Eastern =
affairs, he=20
      said.=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>Mr. Spence said his =
"genius" was=20
      in recognizing before other U.S. observers that Japan was headed =
for=20
      economic greatness and in being able to identify and help Japanese =
Diet=20
      members on the way up.</B></SPAN>=20
      <P>"I became a very significant intellectual force in Japan," he =
said with=20
      typical braggadocio. "I created three members of the Japanese =
Diet. It's=20
      called perspicuity. I saw a future prime minister in an obscure =
little man=20
      named [Yasuhiro] Nakasone when all our spastics here didn't see =
that."=20
      <P>Mr. Spence claimed he coached Mr. Nakasone on dealing with the =
United=20
      States, advising him to buy President Reagan a saddle for a =
present rather=20
      than golf clubs and always to mention the former president's =
movies just=20
      before the press was admitted for photo opportunities to ensure =
the two=20
      would be engaged in animated conversation.=20
      <P>Among his achievements, Mr. Spence said, was producing a =
"brilliant"=20
      position paper that persuaded the Japanese to allow the Palestine=20
      Liberation Organization to open an office in Tokyo.=20
      <P>He also said he greatly enhanced the reputation of Motoo =
Shiina, a=20
      powerful member of the Diet, Japan's parliament, who is considered =
Japan's=20
      top expert on defense issues and a likely future prime minister.=20
      <P>"Motoo's father, Etsusburo, who was a great man, asked me to =
help his=20
      son, who he saw as playboy," Mr. Spence said. "I made Motoo Shiina =
in the=20
      United States, then he sued me."=20
      <P>The lawsuit over a house on Wyoming Avenue NW, in a fashionable =

      neighborhood of homes of senior diplomats, began when Mr. Shiina =
sought=20
      the return of $345,000 he had lent Mr. Spence to purchase the =
property.=20
      Eventually, the suit would be dropped on the day Mr. Shiina was to =
give a=20
      sworn deposition.=20
      <P>The settlement terms led to Mr. Spence's company's getting =
$68,000 from=20
      the Policy Studies Group headed by Mr. Shiina. Mr. Spence agreed =
to repay=20
      Mr. Shiina $379,000 at 5 percent interest.=20
      <P>The money was repaid when Mr. Spence sold the house for =
$900,000, and=20
      he kept the approximately $500,000 profit.=20
      <P>Mr. Spence said yesterday that he had forced Mr. Shiina's =
attorneys to=20
      drop the suit by threatening to reveal that the money was "hot."=20
      <P><SPAN style=3D"BACKGROUND: #7fffd4"><B>"The money came into the =
country=20
      illegally from Hong Kong, and I knew it," he said. "That's why I =
could be=20
      so sarcastic in my deposition. I knew they wouldn't push =
it."</B></SPAN>=20
      <P>Mr. Shiina has denied any wrongdoing in the case. He has =
specifically=20
      denied any violations of currency exchange laws.=20
      <P>Mr. Spence said he later turned his lobbying talents to China, =
with the=20
      intention of establishing high-level influence there. "They have =
no money.=20
      What were they going to pay me with - rice?" he asked. "I did it =
to make=20
      contacts."=20
      <P>Throughout this period, Mr. Spence admitted to leading a =
dual-level=20
      existence, with separate but strong excitements.=20
      <P>On the surface, he threw dazzling parties and weighty seminars, =

      ensnaring Washington celebrities.=20
      <P>A profile of Mr. Spence in The New York Times in January 1982 =
was=20
      headlined "Have Names, Will Open Right Doors." The article quoted =
a=20
      Washington Post columnist saying of Mr. Spence in 1980: "Not since =
Ethel=20
      Kennedy used to give her famous Hickory Hill seminars for great =