Loser Twice, Justice Dept. Tries Again to Scuttle North’s Trial

The Justice Department today sought for a third time to delay Oliver North’s Iran-Contra trial, contending that defense lawyers will hurt national security by putting state secrets on the public record.

The department asked a three-member panel of the U.S. Court of Appeals to reconsider its refusal to delay the trial while it studies the presiding judge’s refusal to implement procedures the government argues are needed to prevent surprise disclosures of classified information.

If the trial is allowed to start next week under the ground rules set by U.S. District Judge Gerhard A. Gesell, the department said, “highly sensitive items of classified information will be revealed by the defense in its opening statement, causing irreparable damage to both the national security and foreign affairs interests of the United States.”

The Justice Department, at the request of intelligence agencies including the National Security Agency, wants more stringent controls on North’s plans to introduce classified material in the case.

In a court filing on Wednesday, the department criticized Gesell, saying he had adopted procedures that fail to identify what parts of the classified material North wants to present are relevant and whether they are admissible.

Jury Selection Complete

Gesell finished selecting a jury Thursday and rejected the department’s censorship bid, calling it “wholly misplaced.” He told the jurors to report back Monday morning.

Gesell said the department has no standing to interfere in the trial at this point because independent counsel Lawrence Walsh is handling the prosecution of North. Walsh wants to proceed with the trial immediately and opposes the department’s effort to halt the case.

A few hours later, the appeals court upheld Gesell’s decision.

Loye Miller, a Justice Department spokesman, said the appeals judges on Thursday “had before them a lot more” material from Walsh “than they had from us.”

Assistant Atty. Gen. Edward S. G. Dennis, head of the department’s criminal division, claimed that “the risk to national security would be significant” under the rules laid down by Gesell. He said the government would lack control over “disclosure of very sensitive, classified information.”

Gesell issued a ruling Jan. 19 permitting North to introduce classified material if it tends to show that North’s purpose was not to violate the law or that government witnesses are lying.

Other Openings Allowed

He also said North may use classified information, where relevant, about the Reagan Administration’s efforts to have other countries aid the Nicaraguan Contra rebels after Congress had banned U.S. military aid to them.

The Justice Department is seeking a court order saying that North may disclose no classified information to which the U.S. government has any pending objection.

North is charged with concealing from Congress and the attorney general the Reagan Administration’s secret support for the Contras during the period in which direct U.S. aid was banned.

He also is accused of illegally accepting installation of a security system at his home.