WASHINGTON INSIGHT

SITTING IN: GOP presidential wannabe Steve Forbes, who’s running as a Washington outsider, drew more than a few double takes Tuesday when he showed up at a typical Washington insiders affair. The magazine publisher attended one of those dinners for which the press and politicians gussy up in formal dress to eat, drink and swap barbs. Critics say such events further a too-cozy relationship between elected officials and the press in Washington. But Forbes’ appearance at the congressional correspondents dinner made sense to some of those accustomed to running for political office. “He’s got all the exposure he needs outside Washington,” said one 13-term Democrat. “It’s a smart move to come here.” The evening’s speakers were clearly delighted over their fresh target, especially one disagreeably dressed in a blue business suit. He’s worth “a billion dollars,” joked Sen. Byron L. Dorgan (D-N.D.), “and he can’t afford a tux?”

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CHINA STANCE: Presidential contender Sen. Bob Dole (R-Kan.) is said to be putting together a big speech on China policy. Washington insiders say the Senate majority leader is planning to take a tough stance on China’s application to join the World Trade Organization--arguing that the United States should not agree to let Beijing in unless it eases political repression and further opens its markets. With such a speech, Dole would be giving a nod toward the constituency of Patrick J. Buchanan, one of his rivals for the Republican nomination. Buchanan has gone much further, calling for the imposition of tariffs on Chinese goods imported into this country. Washington insiders say Dole’s speech might not mean much in practical terms because it doesn’t look as though China’s effort to get into the WTO is going anywhere right now anyway.

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REAL NIGHTMARE: A Silicon Valley exec who pushed for federal legislation to make it more difficult for unhappy stockholders to win lawsuits alleging insider trading is now the target of a lawsuit by unhappy stockholders alleging insider trading. Edward McCracken, CEO of computer products-maker Silicon Graphics Inc., faces a class-action suit contending that he acted on inside knowledge when he sold $2.1 million worth of company stock in late November, weeks before the company announced it would not meet quarterly earnings projections. The news sent the stock tumbling 17%. In December, McCracken, a strong supporter of President Clinton, joined in efforts to persuade the president to sign off on litigation reform legislation that raises the standard of proof required to show that someone acted on insider knowledge. Full-page newspaper ads argued: “For the men and women of Silicon Graphics, whose computers helped Industrial Light and Magic create the imaginary dinosaurs of ‘Jurassic Park,’ meritless securities suits are an all-too-real nightmare that threatens their jobs.” Clinton vetoed the bill, but Congress voted to override. The lawsuit was filed by William Lerach, a San Diego attorney who is a national leader in filing class-action lawsuits. McCracken did not return phone calls.

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MYSTERY SOLVED: Even President Clinton laughed Saturday when Colin L. Powell regaled a group of Washington’s power elite with one-liners about the chief executive’s legal problems. Among other things, the former chairman of the Joint Chiefs of Staff revealed that he knows how the missing Rose Law Firm billing records turned up in the first family’s quarters: They were planted--by Mark Fuhrman.