Subject: McLarty: Hubbell 'hush-money' allegations "absolutely not true"

Former White House Chief of Staff Thomas "Mack" McLarty arrived for his appearance before the Whitewater grand jury in Little Rock, Ark., saying allegations that his attempts to help former Justice Department official Webster Hubbell find employment in exchange for his silence on Whitewater are "absolutely not true."

McLarty spend the day anwering questions in closed-door proceedings.

White House Chief of Staff Erskine Bowles testified before the same grand jury for six hours Tuesday, telling reporters afterward that he was mostly questioned about Hubbell.

McLarty and Bowles made efforts to help Hubbell find employment after the former associate attorney general quit his job at Justice amid allegations he had overbilled his law partners at the Rose Law Firm, where Hubbell and Hillary Rodham Clinton were partners.

Specifically, investigators want to know if Hubbell got more than $400,000 in Whitewater so-called "hush-money" because he was such a close friend and confidant of the Clintons.

After Hubbell resigned from the Justice Department, he agreed to cooperate with Whitewater prosecutors who claim Hubbell has been less than forthcoming.

Bowles has also denied any wrongdoing and told reporters when he was finished testifying he was looking forward to returning to Washington to "move on with the people's business."