WASHINGTON (October 28) -- Lobbyist Richard Douglas testified Wednesday that former Agriculture Secretary Mike Espy asked him to lie to FBI agents and say Quaker Oats Inc., a company regulated by USDA, did not give Espy Chicago Bulls playoff tickets.

Douglas testified that he agreed to tell the FBI that he provided the tickets, saying he "would take care of it." But Douglas also said he was "shocked that I was asked to do that. I wanted to get off the phone as quickly as possible."

Espy is charged with 38 counts of accepting illegal gifts and the lying about it. If convicted, Espy faces a minimum of three years in jail for the most serious charges -- three counts of violating the Meat Inspection Act.

Douglas, who like Espy is African American, said he had warned Espy to pay for the tickets at the time the two men attended the June 1994 game and was not surprised that the FBI later asked questions about the tickets.

"Based on the political realities in Washington, D.C., a white secretary could go to a baseball game with tickets from Anheuser-Bush but a black secretary would be scrutinized more," Douglas told the nearly all black jury.

Douglas, who was convicted of telling false statements to the FBI about the Espy matter, told Independent Counselor Donald Smaltz he repeatedly lied to an FBI agent when he was originally interviewed about illegal gratuities for Espy.

At the time, Douglas was the chief lobbyist for Sun Diamond Growers, Inc., a California farmers cooperative.

Espy contends any gifts he received from Douglas were legal because the two are old friends from college. Federal gratuities statutes and modern interpretations of the Meat Inspection Act, a strict law governing the conduct of USDA employees, allows gifts motivated by friendship.

Douglas told jurors he was not trying to influence Espy, "I don't recall trying to influence him on issues specific to Sun Diamond. I was interested in broader agriculture policy. If that affected Sun Diamond, so be it."

Sun Diamond, which grows walnuts, figs, raisins, and other products, had numerous policy matters pending at USDA. They included Sun Diamond's participation in two lucrative Federal food programs: the School Lunch Program, and the Market Promotion Program, a USDA foreign trade initiative.

Sun Diamond was also lobbying USDA on proposed changes to the Delaney Clause, which deals with cancer causing pesticides in the food supply, and a proposed ban of a pesticide for fruits and nuts.

Douglas is considered a hostile witness by the prosecution. When Smaltz began his direct examination, he asked why Douglas recently used a vulgar expression, swearing at two members of the independent counsel staff.

Wednesday, October 28, 1998

• Lobbyist testifies he lied to FBI about gifts to Espy
• Tycoon withdraws $1 million offer in Jones case
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• Susan McDougal takes stand in embezzlement case
• Judiciary Committee Democrat asks Starr to justify probe
• Starr rejects Democratic request for data
• Clinton seeks defamation case delay
• Ex-Nixon panel chief says don't impeach Clinton
• Washington welcomes Colombia leader

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