Subject: Reno, Freeh Confirm Discussions About Appointment Of An Independent Counsel

Attorney General Janet Reno said today she continues to hold the view that it is not necessary for her to seek an independent counsel in the campaign funds investigation. But Reno raised questions about whether her views on the issue differ from those of FBI Director Louis Freeh.

In a meeting with reporters, Reno said, "Director Freeh gave me his thoughts. I think the bottom line from him was, 'There's no wrong answer.'" When asked if the FBI indicated evidence exists to appoint an independent counsel Reno said, "I'm the one who has to make the decision and determine the conflict, so I don't think they, from their perspective, can make that decision."

Her comments prompted a written statement from Freeh which did little to dampen speculation on the matter.

Freeh's statement said, "I and other FBI officials have had and continue to have ongoing discussions and conversations with the Attorney General and other Department of Justice officials regarding the investigation into allegations of campaign financing irregularities, as well as any potential referral to an Independent Counsel."

An FBI official familiar with Freeh's statement called it "an elaborate no comment" and said, "It's a sensitive issue. The director would never openly reveal his private discussions."

The Justice Department's Criminal Division now oversees the growing investigation by government career prosecutors and more than two dozen FBI agents.

Many Republicans on Capitol Hill last week sharply criticized Reno's decision rejecting their formal call for her to seek an outside counsel. Senate Judiciary Committee Chairman Orrin Hatch has called Reno to testify before his panel next Wednesday to explain her decision.