Panel Again Clears Hatfield but Probe Continues

The Senate Ethics Committee, supporting its own findings of last fall, said Tuesday that there is “no credible information” that Sen. Mark O. Hatfield (R-Ore.) was involved in conflict of interest over his wife’s acceptance of $55,000 in real estate fees from a Greek businessman.

However, Justice Department sources said a probe into Hatfield’s activities by the department’s criminal division is continuing.

Reporting on 700 pages of private testimony from 22 persons, the panel said that “not one witness provided evidence of any corrupt behavior on the part of Sen. Mark O. Hatfield.”

The report summarizes the testimony of key witnesses.

Four former associates of Greek businessman Basil Tsakos testified that they suspected that the payments to Antoinette Hatfield, a Washington real estate broker, were intended to help win her husband’s support for a $10-billion oil pipeline across Africa, a pet Tsakos project.

These witnesses also said they knew of no work performed by Mrs. Hatfield for Tsakos worth $55,000 in payments.

But associates of Mrs. Hatfield said she did considerable work for Mrs. Tsakos and her husband between 1981 and 1984 and deserved compensation.

Tsakos and Hatfield were interviewed by Ethics Committee staff members, and their statements provide at least one conflict, the report said.

Denies Discussion

According to the report, Tsakos said he never discussed with Hatfield the prospect of the senator’s becoming President of a company formed to promote the building of the pipeline.

But Hatfield said that, in 1983, when there was speculation over whether he would seek reelection in 1984, Tsakos did offer him the presidency of the company. Hatfield said he told Tsakos that, if he decided not to run, he would return to university life, the report said.

Mrs. Hatfield said she also recalled such an offer but added that “neither she nor her husband took it seriously,” according to the report.

However, she did say that Tsakos asked her to become a director of the company and that she had declined. Hatfield told the committee that he was interested in the pipeline idea only because he believed that it could contribute to peace in the region.