Judge Hints at Dismissal of 1 North Charge

The central conspiracy charge against Oliver L. North and other defendants in the Iran-Contra case could be dismissed if key classified documents are too sensitive for public disclosure, the judge in the case warned today.

U.S. District Judge Gerhard A. Gesell made his observation at a pretrial hearing in which independent prosecutor Lawrence E. Walsh said intelligence officials are against public release of a handful of classified documents, including some from the CIA, that might be relevant to North’s defense.

Walsh agreed that if intelligence officials refuse to agree to allow the documents to be made public at trial, “then OK, I’m with you, Your Honor. I’ve done my best.”

The judge has ruled that North, a former White House aide on the staff of the National Security Council, is entitled to review highly secret documents that would support his defense that he operated with the knowledge of superiors. But the Administration is fearful that national security secrets will be disclosed.

“It’s now apparent that the government will not provide documents that I’ve ordered be disclosed to North for his defense,” Gesell said. “Unless that issue can be reconciled . . . then it’s clear to me . . . that the conspiracy counts will have to be dismissed.”

Request for Delay

The key counts in question in the indictment of North are conspiracy to defraud the government in the diversion of profits from U.S. arms sales to Iran to Nicaraguan Contra rebels, theft of government property and wire fraud.

Gesell made his ruling at a hearing called to discuss a request by North’s attorneys to delay his trial from Sept. 20 until March. In court papers filed last week, they expressed concern that the current trial date will come in the midst of the presidential election campaign, meaning that jurors will be exposed to news reports on the White House race that mention the North trial.

Gesell said he is unable to deal with North’s motion to continue the trial date “without knowing what it is we’re going to try.”

Gesell said he wants to know how North’s operations were funded, “who in high places” in the Administration knew about them and North’s involvement.

Walsh told Gesell that he would try to respond to those questions by Friday.