Nofziger Ethics Probe Expands--Letter Cited

In a second instance of lobbying activity that may violate federal ethics rules, Lyn Nofziger, former White House political director, intervened with an old colleague on behalf of a Los Angeles agricultural firm 11 months after leaving office in 1982, it was learned Tuesday.

Nofziger wrote then-National Security Adviser William P. Clark in December, 1982, seeking his help in preserving a rice contract with South Korea for Comet Rice, a subsidiary of Early California Industries of Los Angeles, according to sources familiar with the case.

Clark confirmed Tuesday that he received the letter, but said he took no action.

The letter comes to light as the U.S. attorney’s office in New York is investigating a similar lobbying effort by Nofziger in May, 1982, to help a New York-based defense contractor obtain a $31-million Army engine contract.

Federal investigators are expected to consider the rice contract as part of an on-going inquiry into possible ethics law violations by the Washington public relations consultant.

The U.S. attorney’s office currently is conducting the investigation but the Justice Department is expected to decide soon whether to refer it to an independent counsel for examination. The letter to Clark was first reported by the New York Daily News.

Under the 1978 Ethics in Government Act, a high government official leaving his job may not approach his old agency for one year with the intent of influencing officials on behalf of a client. Nofziger left the White House in January, 1982.

Responds to Competition

Nofziger declined comment. An associate, who declined to be named, said that Nofziger had sought to help Comet sell rice to South Korea in the face of competition by California rice cooperatives for the business.

At the time, the Agriculture Department, which must approve rice sales to South Korea under its export assistance program, seemed to be siding with the cooperatives, who were represented by former San Francisco Mayor Joseph Alioto, a Democrat.

In the letter to Clark, dated Dec. 16, 1982, Nofziger said in part: “I would just like to point out that once again, the Administration is on the wrong side of a political issue.” Asserting that the rice co-ops had the backing of, among others, Rep. Tony Coelho (D-Merced), chairman of the Democratic Congressional Campaign Committee, Nofziger said:

“It is Mr. Coelho who raises the money and takes the lead in trying to beat Republican congressmen.

“I sure wish you would take a look at this,” Nofziger concluded, “because it seems to me that once again we’re in a position of punishing friends and rewarding our enemies.”

Clark Remembers Letter

Clark told The Times that he recalled receiving Nofziger’s letter, but he added: “While I probably referred it to my staff, I neither responded to it nor took any action because it appeared to be a domestic matter.”

He said that Nofziger never called him or followed up on the letter. The firm subsequently retained its rice business with South Korea.

It could not be learned how much Nofziger received for his lobbying effort, although a rice industry source said he was “a paid adviser.” Officials of Early Industries declined comment.

In the other lobbying case, Nofziger allegedly wrote to then-deputy White House counselor James E. Jenkins in May, 1982, asking help in getting a minority business contract for Wedtech Corp. of New York.

Nofziger and Mark A. Bragg, an associate in his Washington public relations business, allegedly each received 37,500 shares of Wedtech stock worth several hundred thousand dollars. Nofziger has said that he will issue no statement on that case.