Meese to Quit; Claims Probe Vindicates Him : Says Report Lifts ‘Burden’ of Allegations

Atty. Gen. Edwin Meese III, declaring that an independent counsel’s 14-month investigation has “completely vindicated” him, announced Tuesday that he will resign by early August “to accept new opportunities in the private sector.”

Meese, the most controversial attorney general since John N. Mitchell headed the Justice Department under President Richard M. Nixon, said that the report by independent counsel James C. McKay lifted “the burden of false allegations,” which made the last year “enormously difficult for my family and for me.”

Although Meese said that neither he nor his attorneys had seen a copy of the 830-page report, which was filed with a special three-judge federal court only hours before his press conference, he stressed that McKay had “conclusively determined that there is no basis for criminal proceedings” against him.

‘Constant Drumbeat’

“I have refused to bend to the constant drumbeat of political and media pressure because I have a responsibility to uphold an important principle, not only for myself and this Administration but for future government officials who are subjected to untrue allegations,” the attorney general said.

Meese had been under scrutiny by McKay--the second independent counsel to investigate him--for several matters, from his involvement in the Wedtech Corp. scandal to his role in a controversial $1-billion Iraqi oil pipeline project.

The unexpected announcement by Meese--who participated in a raid on a marijuana patch 70 miles northeast of here earlier in the day--was welcomed by members of both parties. Democrats hailed the resignation of a key Reagan aide that they denounced as an unethical public official who refused to apply the laws evenly and Republicans expressed relief over the departure of a high-profile Cabinet officer who contributed significantly to the so-called “sleaze” issue used repeatedly against the GOP in the presidential campaign.

Difficult Issue

In recent months, Meese’s refusal to resign had become an extremely difficult issue not only for the Republicans but for President Reagan, who had refused to turn his back on a friend of more than two decades, despite constant calls for Meese’s resignation.

Reagan, with whom Meese conferred by telephone shortly before surprising reporters here with his announcement, said that he had been “a darned good attorney general” and that he had no one in mind to succeed him.

“The President wanted to be sure I felt that this was something in my best interests, and on the basis that I felt that it was, then he said he would agree,” said Meese, whose resignation comes only weeks before the Democratic National Convention.

Vice President George Bush, whose campaign aides had complained about Meese’s remaining in office despite repeated questions about his conduct, said in a written statement: “Ed did the right thing, and I wish him well.”

In addition to limiting the effectiveness of Democratic attacks, Meese’s resignation is bound to blunt the impact of the independent counsel’s report, which government sources said raises serious questions about his ethical conduct, mostly stemming from his dealings while in office with his longtime friend, E. Robert Wallach. Wallach, who is under indictment on fraud, racketeering and conspiracy charges in the Wedtech case, has been accused of using his influence with Meese for personal gain.

During his press conference, Meese’s remarks were typical of his style, in which he often uses so-called “lawyer’s arguments” that take a narrow interpretation of an issue.

Ethical Judgments

Meese challenged, for example, McKay’s authority to make any ethical judgments about his conduct.

“The important thing to remember is that the single duty of the independent counsel was to determine whether any of these allegations that have been made--false allegations that I referred to--formed the basis for criminal proceedings,” he said. “. . . Anything that may be in the report is merely commentary and opinion. If it raises any questions, I will be glad to answer those.”

Patrick S. Korten, Meese’s chief spokesman, sought to underscore the attorney general’s arguments by distributing to reporters seven “talking points on the proper role of the independent counsel,” which contended that the report “is a total vindication of Atty. Gen. Meese.”

“To the extent the report . . . discusses any issues relating to ethics or personal judgment by Atty. Gen. Meese, the report is merely advisory and has no legal or binding effect,” the points concluded.

Will Study Report

McKay’s report is not expected to be made public by the appellate court judges who oversee independent counsels until Meese, Wallach and their lawyers, as well as others mentioned in the document, have had the opportunity to study and respond to it. Although Meese sought two weeks for this review, the report could be released sooner.

One source said Meese’s lawyers are considering a move to fight public release of the voluminous report. When asked about this, Meese refused to commit himself.

The report is expected to refer questions about Meese’s ethical conduct to the Justice Department’s Office of Professional Responsibility and the U.S. Office of Government Ethics.

Michael E. Shaheen Jr., the department’s counsel for professional responsibility, has told Justice officials that he will review any matters referred to him by McKay, despite Meese’s plans to leave.

Wide Authority

Shaheen, who has developed a reputation for independence by questioning the conduct of past attorneys general, has a wide range of authority--from recommending official censure to launching criminal proceedings.

The ethics office, on the other hand, would be unlikely to take any action covering a departed Cabinet official. Donald E. Campbell, the agency’s chief counsel, said that the office would act only if McKay’s findings dealt with something “programmatic” in the Justice Department’s operations.

Sen. Carl Levin (D-Mich.), chairman of a Senate Government Affairs oversight subcommittee that issued a report alleging serious “ethical shortfalls” in Meese’s record, called the resignation “long overdue.”

“The attorney general is wrong when he says he’s been vindicated by a report he hasn’t seen or read,” Levin told reporters. He urged the three-judge panel to release the report immediately, saying: “The ethical cloud will hang heavy over the Justice Department until this report is released.”

Some Republicans Happy

While the harshest criticism of Meese came from Democrats, some Republicans joined in hailing his departure.

“His resignation is good news for the Justice Department, good for the country and good for the Bush campaign,” said Sen. Arlen Specter (R-Pa.), a member of the Senate Judiciary Committee, where Meese has testified regularly.

But Sen. Strom Thurmond (R-S.C.), former chairman and now ranking minority member of the Judiciary panel, said that Meese “has served our nation in a highly capable manner.” Thurmond, however, had met twice with Meese to express concern over reports of plummeting morale at the Justice Department.

Sen. Orrin G. Hatch (R-Utah) said that Meese’s announcement did not surprise him. “I really felt that once he was vindicated he would resign,” Hatch told reporters. “He’s gone though unholy hell for several years. . . . I don’t know anyone who has been kicked around as much as Ed Meese and his family.”

Ronald J. Ostrow reported from Washington and Carl Ingram from Sacramento. William J. Eaton in Washington contributed to this story.