Rehnquist Lifts Stay but Secrets Plan Snags North Trial

Chief Justice William H. Rehnquist withdrew his order Thursday that had halted the trial of Oliver L. North, freeing the trial judge to resume proceedings against the former White House aide.

But U.S. District Judge Gerhard A. Gesell, preoccupied with closed-door discussions on how to protect U.S. secrets in one key area of North’s defense, put off a decision on when to restart the trial. The jury has been selected but not sworn in.

Rehnquist’s action came at the request of Atty. Gen. Dick Thornburgh, who asked the chief justice to lift an “administrative stay” that the Justice Department had sought last weekend because of disagreement over how classified material would be handled in the court proceedings.

Provision on Veto Power

Thornburgh, however, said Wednesday that he is satisfied a new plan offered by independent counsel Lawrence E. Walsh would protect Justice Department interests by giving the attorney general veto power over what sensitive data may be disclosed during testimony. Earlier in the week, Gesell had ruled that Thornburgh would have no direct participation in the trial.

Walsh’s aides contend that the revised procedure abides by Gesell’s ruling. But North’s lawyers attacked the plan in court papers Thursday, charging that it would “cripple” court proceedings by giving Thornburgh too much leeway to interrupt the trial. Walsh denied this.

Gesell sidestepped the issue Thursday but scheduled more closed-door discussions for this morning. He and lawyers for both sides will try to develop a formula at the session for use in court to protect the identities of U.S. allies who helped arm Nicaragua’s Contras, one of Thornburgh’s concerns. The earliest the trial could resume would be next Tuesday, after the three-day federal holiday weekend.

Legal sources said that Gesell believes he must resolve the so-called “third-country” dispute or the attorney general, exercising his power under the 1980 Classified Information Procedures Act, might order all related government documents withheld. That action could lead to dropping some of the remaining 12 felony counts against North. Last month, Thornburgh filed an affidavit that resulted in the dismissal of key charges of conspiracy and theft because of fear that top-secret information would have to be disclosed.

North’s lawyers, calling the issue crucial to their case, have told Gesell they want to tell jurors that top officials of former President Ronald Reagan’s Administration, including Reagan himself, approved solicitation of aid for the Contras from third countries at a time when Congress had banned direct U.S. assistance. In addition, Reagan and his top aides attempted to conceal the operation from Congress and the public, North’s lawyers have charged in court papers.

Government prosecutors, on the other hand, have told Gesell that they need to protect the names of the 13 countries in question for fear that their disclosure would cause foreign nations to be reluctant to undertake future covert operations with the United States. North’s attorneys have asserted that the Reagan Administration offered unspecified “CIA assistance” to those nations in return for their cooperation.

The sticking point in the closed-door talks apparently is that North’s lawyers want specific details presented to jurors, including evidence that Reagan himself ordered concealment of the third-country operation. The Justice Department, however, wants to develop a more generalized description of this operation to present to jurors without disclosing actual names.

Open congressional hearings in 1987 revealed that Saudi Arabia, Israel, South Korea, Taiwan and Brunei were among the countries involved.