Walsh Suggests He’ll Seek North Indictment Soon

Independent counsel Lawrence E. Walsh strongly hinted in court papers Friday that he is seeking to indict Lt. Col. Oliver L. North soon on charges of conspiring to defraud the government.

In papers filed with the U.S. Court of Appeals for the District of Columbia, Walsh said he has expedited his collection of criminal evidence against North in the Iran- contra scandal because Congress may vote early next month to grant North limited immunity from prosecution in return for his testimony.

Walsh reminded the appellate judges, who are considering a legal challenge filed by North against the independent counsel’s prosecutorial powers, that two other figures in the case, Carl R. (Spitz) Channell and Richard R. Miller, have pleaded guilty to conspiracy to defraud the government and have “identified Oliver L. North as a member of this conspiracy.”

Channell, a conservative fund-raiser, acknowledged earlier this month that he had defrauded the government of taxes in raising $3.12 million for the Nicaraguan rebels. Miller, who worked as a State Department contractor on Central American programs, pleaded guilty to similar charges a week later. They each could be sentenced to a maximum of five years in prison and a $250,000 fine.

Meanwhile, in urging the court to uphold the constitutionality of his office, Walsh won support Friday from the American Bar Assn.

The ABA filed a friend-of-the-court brief, which said in part: “At a time when it is important to maintain faith in our justice system and our democratic form of government both at home and abroad, it is imperative that ongoing investigations of wrongdoing by government officials not be interrupted or terminated.”

‘Enhance Our System’

The brief, signed by ABA President Eugene C. Thomas, added: “We are convinced the independent counsel provisions are constitutional and in fact enhance our system of checks and balances.”

North, whom President Reagan fired last November from the National Security Council staff for his alleged role in diverting funds to the contras from U.S. arms sales to Iran, has argued that Congress illegally usurped executive branch power in providing that independent counsels be appointed by a three-judge appellate court panel. North’s attorneys have argued that only the executive branch has the power to prosecute.

In another “amicus brief” filed Friday, the Justice Department told the court that “there is no need to adjudicate the constitutionality of the law” at this time because Atty. Gen. Edwin Meese III earlier this year gave Walsh a parallel appointment from the department--an executive branch agency--”to remove any defect in his authority” to proceed with the Iran arms inquiry.

Conducted in Secrecy

Although an indictment of North has been the subject of wide speculation, Walsh has never before hinted so strongly that he was on that track. This is largely because grand jury investigations are conducted in secrecy.

The select Senate and House committees have the power to vote immunity for North for anything he might disclose to them. In that event, Walsh has 30 more days from the time of that vote to “isolate” the evidence he has gathered against North--that is, to put it under court seal so he can prove later, if he obtains an indictment, that North’s immunized testimony played no role in the indictment.

‘As Rapidly as Possible’

Referring to this procedure, Walsh said Friday in his court papers: “The impending congressional decision on immunity for North has obviously made it vitally important for (me) to pursue as rapidly as possible those portions of the investigation relating to North.”

He added: “At the same time, North has made repeated attempts to block independent counsel’s investigation by raising the constitutional issues which he now seeks to have reviewed by this court.”