European Stars and Stripes (Newspaper) - July 26, 1991, Darmstadt, Hesse                                Friday july 26, 1991 the stars and stripes Page 5 democrats reportedly agree to probe 80 Reagan Campaign House speaker Thomas Foley. Proceeding cautiously Washington a House democratic leaders Are going ahead with a formal investigation into whether the 1980 Reagan Bush Campaign conspired with Iran to delay release of 52 american hostages until after the presidential election democratic sources said wednesday. House speaker Thomas Foley d-wash., will announce the probe next week and detail the mechanism he will establish to carry out the investigation said the sources who spoke on condition of anonymity. President Bush has denied knowledge of a Campaign hostage Deal with Iran and has publicly said he would not mind if Congress carried out an investigation. Former president Catter also Quot has called for a probe of the allegations. Foley has become convinced the sources said that the allegations a variations of which Date 10 years a should be investigated by a formally constituted committee with subpoena Powers and authority to put witnesses under oath. The sources said Foley was considering several formats but appeared inclined to designate a task Force within the House foreign affairs committee and its staff to do the work. Such a team would include Republican and democratic members and could later include Senate representation should majority Leader George Mitchell a Maine want the Senate to become involved the sources said. Sensitive to the political overtones of an investigation that could stretch into an ejection year Foley was said to be determined that the probe should be a Low profile Effort. Some democrats have been eager to pursue the matter convinced that it could be politically damaging to republicans. But for Foley the Prospect that an investigation could be seen As an expensive fishing expedition has caused  the Issue with caution. Informal Statt efforts to investigate the Case have encountered several problems. One figure often mentioned a then Campaign chairman and later Cia director William Casey a is dead. Others including iranians who claim knowledge of the affair have less than Stellar reputations the sources noted. One source said a Man High on Foley a list of candidates to head the investigation former Iran Contra committee chairman Lee Hamilton d-ind., has indicated he does no to want the Job. Foreign Bank s dealings prompt House probe Washington fast Tso. A Washington apr the House banking com Mittee said wednesday that it would open hearings in september on the Bank of credit and Commerce International the Luxembourg based Bank accused of massive fraud. Meanwhile the Justice department disclosed a new investigation of the Bank. Rep. Henry b. Gonzalez a Texas committee chairman said the committee would look into by Cir a secret acquisition of first american Bank the largest Bank in the nations capital. Clark Clifford first american chairman and Robert Altman the Bank a president have agreed to testify at the first hearing scheduled for sept. 11, the committee said. Top officials of the Federal Reserve also Are scheduled to appear. The Justice departments fraud Section is coordinating work of 10 Federal prosecutors in Washington at Lanta Miami and Tampa fla., where five former bcc1 executives were convicted last year in a Money laundering Case said assistant attorney general Robert s. Mueller Iii head of the criminal division. The department is pursuing every a aspect of the Case to the extent we have received allegations from credible sources he said. One item being pursued is a criminal referral from the Federal Reserve Board which has been probing the links Between Bocci and first american ban shares inc., Mueller said. A new York City prosecutor is investigating allegations that Clifford and first american misled new York state regulators about the Bocci link when the Bank was chartered to do business there. Clifford a former defense Secretary and Altman a prominent democratic attorney have said they were unaware of their Bank a connection to Bocci. Federal Reserve officials said they relied on representations from the two that there was no connection. Republican legislators Are expected to focus on Clifford an attorney who has been an adviser to democratic presidents since Harry Truman. Democrats Are focusing on whether the Federal Reserve should have detected by Cir a involvement sooner. Bocci pleaded guilty in Federal court last year to laundering $14 million. One of five Bank officers convicted in the Case was the personal banker for panamanian dictator Manuel Noriega who is awaiting trial on bribery and drug conspiracy charges in Miami. Earlier this month regulators in eight countries began seizing the assets of Bocci which has branches in 69 nations. Authorities in Britain Switzerland Luxembourg the Cayman islands Spain Canada and the United states have moved against Bocci which has an estimated $20 billion in assets. The Bank is owned by sheikh Zayid Ibn Sultan Al a Hayyan ruler of United Arab emirates. In the stars and stripes 10years ago july 26,1981 a Israel accused the palestinians of a third breach of the fragile cease fire along the lebanese Border and a key legislator said it was just a matter of time before the guerrillas would resume full scale hostilities. 20years ago july 26,1971 a in its first official response to president Nixon a projected trip to China the soviet Union said that it seeks better relations with communist China and the United states but warned both Powers against anti soviet collaboration. 30years ago july 26,1961 a in a nationwide address president Kennedy called for a $3.25 billion boost in military spending increasing the army a strength to 1 million men doubling and tripling draft Calls and sacrifices by All americans to meet the communist Challenge around the world.40 years ago july 26,1951 a five Bradley University basketball players in Illinois admitted to taking bribes from gamblers to control the Point spread in certain games. Backlash from cancelled Al 2 continues by the Washington Post Washington a at the Pentagon and on Capitol Hill wednesday recriminations and resignations continued after the costly cancellation of the Navy a-12 attack plane. Capt. Lawrence Elberfeld who was director of the a-12 program said he would retire from the Navy. He requested the move after top Navy officials put on hold his previously announced promotion to rear Admiral. Defense and congressional sources said he was pressured to resign by Navy superiors after the House armed services committee received testimony from his subordinates that he had tried to cover up problems that led to a $1 billion Cost overrun on the aircraft. In a Telephone interview Elberfeld said he decided to leave the Navy after it was a made Clear to him a that Congress feels i have not been held to account for my role As program manager of the a-12. I also Felt my staying on was adversely affecting other naval aviation programs and the department of Navy  Elberfeld will continue to work at the Navy a foreign sales office until his resignation takes effect next july. When defense Secretary Dick Cheney cancelled the a-12 in january the government had paid Mcdonnell Douglas corp. And general dynamics corp. About $3 billion for the planets development. No planes were built. The cancellation led to the resignations of the Pentagon Stop procurement official and the Admiral in charge of procuring Navy aircraft. The cancellation also prompted investigations by the Justice department and two House committees. It also resulted in the largest claim Ever filed against the Federal government by the two contractors who claim Navy mismanagement not theirs led to the programs demise and $3 billion in losses to their stockholders. The financial condition of the a-12 contractors was the subject of a hearing wednesday by the House government operations committee which is investigating whether Mcdonnell Douglas received unwarranted financial assistance from the Pentagon after the cancellation. The committee released a january letter from company chairman John f. Mcdonnell asking the Pentagon to accelerate payment of up to $1 billion for work performed on other weapons systems under contract to get the company through a Cash crunch. Donald j. Yockey undersecretary of defense for acquisition testified that the reuse so was rejected. But the Pentagon did agree to a separate request from Mcdonnell Douglas and general dynamics to defer collection of $1.3 billion from the two for the a-12 project. Meanwhile the House armed services committee continued hearings wednesday into efforts by the Navy and its contractors to cover up a-12 problems before the cancellation. Navy supervisors described a March 1990 visit by Cheney to the a-12 Plant in St. Louis. Because the program was behind schedule there was no plane or even parts to show him. So company officials rounded up incomplete sub assemblies and defective parts and brought them into the main Assembly area until Cheney completed his tour. Businessman admits Selling phony parts to Navy Nordoi if a i Idi a a i. A Norfolk a. Up a business Man has admitted Selling counterfeit electronic parts for use in Navy warships and commercial nuclear reactors Federal authorities said wednesday. William Stokley 39, pleaded guilty to a count of conspiracy to traffic counterfeit goods. His company Stokley enterprises entered guilty pleas to three charges re lated to the Federal investigation. The pleas were announced by Kenneth Melson . Attorney for the Eastern District of Virginia and officials from the naval investigative service. Stokley was indicted in june. Authorities charged that Stokley enterprises distributed the counterfeit parts from August 1985 to september 1990. He faces a maximum prison term of five years and $250,000 in fines. Old equipment was reworked to appear new and was affixed with false Label plates from companies that included general electric Westinghouse and Jefferson electric Melson said. The parts included circuit Breakers transformers and shipboard controllers