Hearing Cost to Exceed Fund Diversion

With an expected price tag of nearly $4 million, the congressional investigation into the Iran- contra affair will cost more than the $3.5 million diverted from the Iran arms sales to aid the rebels in Nicaragua.

Spokesmen for the House and Senate committees said Wednesday that more than $2 million has been spent in the probe, and the total is likely to double.

The House committee spent $959,000 from January through July 31, including the cost of copying 1,605,000 pieces of paper, committee spokesman Bob Havel said. Much of the copying was for news media copies of documents introduced at the hearings.

Counsel’s Fee

The services of chief counsel John W. Nields Jr. through July cost $51,000, although the money was paid to his Washington law firm of Howrey & Simon.

The committee’s spending included the salaries of 45 staff members, travel, telephones and equipment.

Senate committee spokesman Lance Morgan had previously announced expenditures of $1.2 million as of June 30, the latest figure available.

The top salary is paid to chief counsel Arthur L. Liman, a New York attorney whose annual salary would be more than $72,000. However, he will not serve a full year because both committees go out of business at the end of October. The Senate staff totals 52 people.

The House committee expects to spend its budget of $1.95 million and the Senate panel estimates its final costs at $2 million.

However, the figures do not include police overtime, the cost of producing hearing transcripts and construction work by the Capitol architect.

Witnesses testified during the hearings that about $3.5 million from the Iran arms sales profits went for the benefit of the contras, including construction of an airstrip in Costa Rica and an air supply operation.

Several members of the committees complained during the sessions that the costs of the hearings would exceed the secret aid program that helped the rebels.

Meanwhile, independent counsel Lawrence E. Walsh’s criminal investigation had cost $1.8 million as of June 30, spokesman Jim Wieghart said. That total includes a $59,808 monthly cost for a lease on offices in a Washington building.

Working for Walsh are 35 FBI agents, 29 attorneys, 11 Internal Revenue Service agents, 6 Customs Service agents and 73 administrative personnel.