Longtime Clinton Friend, Brown to Fill Key Positions : Transition: Thomas McLarty, an Arkansas executive, will become chief of staff. Commerce secretary-designate is the President-elect’s first black Cabinet appointment.

In a high-powered pair of appointments, President-elect Bill Clinton on Saturday named childhood friend Thomas (Mack) McLarty as the next White House chief of staff and chose Democratic Party Chairman Ronald H. Brown to become secretary of commerce.

With the surprise selection of McLarty, a 46-year-old natural gas executive, Clinton will install at the White House a Washington outsider whose background as a businessman has given him little experience in the nation’s capital.

Together with the expected addition of Brown to the Administration’s economic team, the choice signaled Clinton’s determination to remain at the center of decision-making rather than allow the voices of dominant advisers to take charge of any quarter.

McLarty, a kindergarten classmate whose reminiscences at a news conference here brought tears to Clinton’s eyes, is closely attuned to the President-elect’s instincts. The Arkansas native made it clear that he did not regard policy as his purview, and associates said his role as the President’s top White House aide would probably be that of an efficient administrator.

Such an approach would establish McLarty as a figure in sharp contrast to more aggressive recent occupants of the job, including John H. Sununu and James A. Baker III. But McLarty, who is familiar with Clinton’s inclination to regard himself as a hub surrounded by spokes of advisers, said his management style would be “collegial.”

Asked what kind of structure he intended to impose within the new White House, McLarty replied: “I would not use the word impose.”

In choosing Brown as his first black nominee to the new Cabinet, Clinton added a new and perhaps more liberal dimension to his swelling team of economic advisers.

As a highly paid Washington lawyer, Brown was sometimes regarded as a disruptive Democratic outsider for his role in supporting Sen. Edward M. Kennedy (D-Mass.) against incumbent President Jimmy Carter in 1980 and the Rev. Jesse Jackson against Michael S. Dukakis in 1988.

But as party chairman he has emerged as an important force in promoting unity among Democrats.

He indicated that as head of the Commerce Department, he intends to advocate a strong government role in promoting American industry, a mission regarded with less enthusiasm by more conservative members of Clinton’s economic team.

The appointments appeared to have solved a pair of problems for Clinton, first by finding a Cabinet post with which to reward Brown, and second by resolving the dilemma of appointing a chief of staff.

Another prospective candidate for the White House position, Warren Christopher, the Los Angeles lawyer who many believe is almost certain to have a key position in the Clinton Administration, was described by transition aides Saturday as the leading candidate for secretary of state.

Asked whether he shared that view, Clinton was left grinning but temporarily speechless during the news conference, and he avoided answering the question.

The removal of McLarty from consideration as energy secretary also was thought to pave the way for Clinton to give that job to outgoing Sen. Timothy E. Wirth (D-Colo.).

As a successful businessman, McLarty, chairman and chief executive officer of Little Rock-based Arkla Inc., is likely to be regarded warmly by business leaders eager to find a friend in the White House.

By contrast, Brown, whose background is in law rather than business, stands as an unusual choice as commerce secretary and may prove unnerving to those who have come to regard the post as a spokesman for corporate America. But his choice adds the first measure of ethnic diversity to a Clinton team whose first 10 nominees are white.

Among other members of minority groups still described by transition aides as leading candidates for Cabinet jobs are Rep. Mike Espy (D-Miss.) as agriculture secretary and former San Antonio Mayor Henry G. Cisneros as the secretary of housing and urban development.

But Clinton, who formally stepped down as Arkansas governor Saturday afternoon, was not expected to identify any more Cabinet choices until Wednesday at the earliest.

Because of their private business dealings, both Brown and McLarty are likely to face questions about potential conflicts of interests as they assume their new posts.

As a highly paid corporate lobbyist, Brown has been associated with a string of controversial clients ranging from Japanese companies to the former regime of Haitian dictator Jean-Claude (Baby Doc) Duvalier. He continued such outside business activity during his tenure at the Democratic Party, a decision that has made him the focus of criticism from several public-interest groups.

McLarty and his firm are defendants in a $535-million lawsuit with the federal agency handling the savings-and-loan crisis. The suit by the Resolution Trust Corp. names them because Arkla purchased a firm that owned a Houston savings institution that the RTC accuses of “misdeeds and negligence.” The alleged behavior predated Arkla’s ownership.

While McLarty is not charged with any wrongdoing, his involvement in the suit has forced him to recuse himself from discussions involving the savings-and-loan crisis during his service as a member of Clinton’s transition board.

Both officials said Saturday they did not believe their business dealings would pose any obstacle to their service in government.

McLarty stressed that he intended to sever his ties with Arkla and liquidate his holdings in private corporations, and said he would be willing to take any other steps necessary to avoid any appearance of conflict of interest.

Brown said he would deal with the matter “very forthrightly” if it were raised during confirmation hearings about his appointment, which is subject to Senate approval. However, he added: “I don’t think there are going to be any questions.”

Brown, whose departure as party chairman could make room for Clinton to move top campaign aide David Wilhelm into the post, expressed eagerness about his pending shift to the Cabinet. He said the nation “simply must” develop a national strategy to ensure that American businesses remain competitive in the world economy.

As an outsider elevated to the White House post, McLarty is likely to come to Washington well aware of the pitfalls encountered by predecessors who tried to make the same move. But McLarty and Clinton both noted that the new chief of staff’s past service as an official of the Arkansas Democratic Party had left him sufficiently acquainted with Washington.

And the two longtime friends suggested that their own close relationship would help to overcome any unexpected problems.

Clinton described McLarty as a man who had “helped to bring success to everyone and everything he has touched.” And as Clinton stood by with tears in his eyes, McLarty struck an earnest but folksy tone as he said his role would be to “help organize, manage, facilitate and carry out the duties of the President of the United States.”

“As his friend I will always be straight with him,” McLarty said, “and he knows that.”

What They Do

A look at the agency and office the new Clinton appointees will lead:

Commerce Department: Promotes international trade, domestic economic growth and technological advancements through a wide range of services. It provides assistance and information to U.S. businesses competing in international markets and monitors unfair foreign trading practices. Through arms such as the Census Bureau, it collects and compiles social and economic statistics and data.

White House chief of staff: Oversees the White House staff, including the 14 executive offices and councils under control of the White House, coordinates Administration policy and resolves disputes among different government agencies and with Congress. The occupant often is the President’s chief confidant, aide, scheduler and liaison with other appointees in the executive branch and officials in other branches of government. He also functions as a gatekeeper, determining which issues reach the President.

Source: Associated Press

Latest Clinton Appointees

Thumbnail sketches of President-elect Bill Clinton’s appointees Saturday:

Chief of Staff: Thomas (Mack) McLarty

Age: 46

Currently: Chairman and chief executive officer of Arkla Inc., a natural gas firm.

Career: A longtime behind-the-scenes political powerbroker who has known Clinton since kindergarten. At age 23, he became the youngest person ever elected to the Arkansas House, and at age 30 he became the youngest person ever named to the company’s board. He became its president in 1983 and CEO in 1985.

Commerce Secretary: Ronald H. Brown

Age: 51

Currently: Chairman of the Democratic National Committee.

Career: Born in New York City, where his parents owned a famous Harlem hotel, he went to private school, then on to Middlebury College and St. John’s University School of Law. After 11 years at the Urban League, he became chief counsel to the Senate Judiciary Committee and served as general counsel and staff director for Sen. Edward M. Kennedy (D-Mass.). He was the first black partner at powerhouse law firm Patton, Boggs & Blow, and has been a corporate lobbyist.

Source: Associated Press