Justice Dept. Disputes Charge North Impaired Congress’ Powers

The Justice Department came to Oliver L. North’s defense Friday by objecting to the Iran-Contra prosecutor’s argument that the former presidential aide undermined Congress’ powers over foreign affairs.

In a friend-of-the-court brief filed in federal court, the department attacked independent counsel Lawrence E. Walsh’s theory that North and three co-defendants obstructed congressional oversight “through deceit and concealment” of their clandestine support of the Nicaraguan Contras.

The department did not urge U.S. District Judge Gerhard A. Gesell to dismiss the major charge that North; John M. Poindexter, former national security adviser, and two arms dealers undermined the government by illegally diverting U.S.-Iran arms-sale profits to the Contras.

Challenges Theory

But it disputed Walsh’s theory that the defendants can be prosecuted for deceiving Congress about the clandestine arms-supply operation set up to help the Contras at a time when the so-called Boland Amendments banned U.S. military aide to the rebels.

“This case, in fact, arises in the context of a profound policy dispute between the executive and legislative branches with respect to foreign affairs,” the department said in its brief.

“A prosecutor acting in the midst of such a dispute must exercise great caution--first, to distinguish violations of law from policy disagreements . . . and to make certain that the laws are applied consistently with the scope of the President’s substantial constitutional authority in the area of foreign affairs.”

The department said Walsh had overstated Congress’ power to regulate the conduct of foreign affairs and covert intelligence operations.

The department said it did not disagree with Walsh’s legal argument that the defendants may have defrauded President Reagan by corrupting the arms-for-hostages deals.

Sees Errors in Brief

Walsh’s office responded: “The Justice Department’s memorandum misstates our brief. It is addressed largely to collateral issues that should not obscure the criminal charges in the indictment returned by the grand jury.

“Those charges, and the very limited role of the Boland Amendment in them, have been clear since the filing of the indictment on March 16, 1988.”

The conspiracy charge against North, Poindexter and arms dealers Albert A. Hakim and retired Air Force Maj. Gen. Richard V. Secord alleges that they undermined the government “by impeding, impairing, defeating and obstructing the lawful governmental functions of the United States.”

The four are charged with “deceitfully and without legal authorization” setting up the clandestine arms-supply network that ferried munitions to the Contras and later diverted more than $12 million in U.S.-Iran arms-sale proceeds to the rebels.