Separate Grand Jury to Be Called in Whitewater Case : Presidency: The regular panel in Arkansas is not prepared to extend its duty to hear allegations surrounding the Clinton real estate investment.

Special counsel Robert B. Fiske Jr. on Wednesday persuaded a federal judge to convene a separate grand jury to investigate allegations surrounding President Clinton’s investment in the Whitewater Development Corp.

After a 40-minute meeting with Fiske, U.S. District Judge Stephen Reasoner ruled that a new grand jury should be impaneled to work exclusively on the Whitewater case because the one now sitting in Little Rock is not prepared to continue long enough to hear the Whitewater evidence.

The move underscores the considerable scope and length of the inquiry that the special counsel is beginning.

“The investigation is anticipated to involve more than 1 million documents, 200 to 300 interviews and over 20 Federal Bureau of Investigation agents and other assistants,” the judge said in his order. “As such, the duties of any grand jury investigating this matter are much more extensive than the court had previously envisioned.”

Reasoner noted that the 23-member grand jury now impaneled meets only two or three days a month. Its 18-month term expires in May, when a new jury will be named to continue hearing other routine federal cases. He said that, because most of the current grand jurors are opposed to having their terms extended, a second grand jury is justified.

Although Fiske has declined to estimate how long his investigation will last, he told The Times in a brief telephone interview that he has rented an apartment in Little Rock for a year and expects to be finished by the time his lease is up. He said the three-year lease on his new offices was negotiated by the government and “it means nothing.”

Fiske, a New York attorney, was appointed last month by Atty. Gen. Janet Reno and assigned to examine the investment that Clinton and his wife, Hillary, made with James B. and Susan McDougal in the northwestern Arkansas real estate development known as Whitewater.

Among other things, he is trying to determine whether the Clintons paid appropriate taxes on their income from the project, whether federally guaranteed money from a savings and loan owned by McDougal was used for the project or found its way into Clinton’s political campaign coffers and whether Clinton used his position as governor of Arkansas to benefit McDougal or Whitewater.

In addition, the Fiske investigation will look into whether Mrs. Clinton and her law firm violated any conflict-of-interest rules by first representing McDougal’s savings and loan and later acting on behalf of the government after the thrift collapsed, leaving taxpayers with a $47-million debt.

Fiske’s request for a new grand jury duplicated a petition filed with the court last month by Donald Mackey, a Justice Department attorney assigned to the case before the special counsel was appointed. Mackey withdrew his request when Fiske’s appointment was announced.

“Given the scope and volume of the matters falling within the jurisdiction of the independent counsel . . . “ Fiske wrote in documents filed with the court, “the current grand jury’s schedule and the other business of the district render an additional grand jury necessary so that such matters may be investigated in a prompt and thorough manner.”

Reasoner originally resisted the idea of a new grand jury on grounds that it would be costly. But he relented after hearing Fiske’s arguments, which were presented privately in his chambers.

“The cost of an additional grand jury would be an admittedly large expense--an expense that the court would prefer to avoid,” the judge wrote. “However, it now appears to be a necessary one. Moreover, the cost of expanding the work of the current grand jury to encompass this investigation likewise would be large. One way or the other, additional costs will be incurred.”

Reasoner did not say how much he thought the grand jury investigation would cost.

Although Fiske has yet to officially appoint any assistants, he said he expects to be ready to begin presenting evidence as soon as the new grand jury is impaneled. He said he will announce five to 10 appointments to his staff next week.