No Whitewash for Whitewater

The White House has put to rest for now the skepticism that greeted President Clinton’s statement on Wednesday that “we’ll do what we can to cooperate” with Justice Department investigations of a failed Arkansas savings and loan and the suicide of White House deputy counsel Vincent Foster Jr. After all, the executive office had been sending out confusing and at times conflicting signals in response to Justice Department requests for all files pertaining to the investigations.

But on Thursday Clinton made good on his earlier remark by instructing his personal attorney to make available all documents about a controversial real estate investment that has been linked with the failed Madison Guaranty Savings and Loan of Arkansas.

The files in question relate to the Clintons’ investment--over 14 years starting in 1978--in the Whitewater Development Corp. with James B. McDougal, owner of the defunct Madison S&L.; The documents had been kept in the office of Foster; after he committed suicide in July, they were given to Bill and Hillary Rodham Clinton’s personal attorney. The Justice Department was not told of the transfer.

The Clintons invested--and, they say, ultimately lost--$68,000 in the Whitewater partnership with McDougal. One aspect of that probe is whether the S&L; regulators concerned about McDougal’s S&L; were kept at bay by then-Gov. Clinton.

Thursday’s action by Clinton averts a politically embarrassing confrontation, one in which a subpoena for the documents might have been sought. Now the White House must stand unequivocally clear of the Justice Department’s review. The department’s No. 3 official, Webster L. Hubbell, who golfs with the President and is a former law partner of the First Lady, has rightly said he will recuse himself from matters relating to McDougal.

Calls for appointing an outside prosecutor have been heard, but such a step seems premature. Atty. Gen. Janet Reno says she plans to insulate the investigation from politics by assigning career Justice Department prosecutors who have worked for both Republican and Democratic administrations. The Justice Department must conduct a vigorous inquiry. Cooperation from the White House? Yes, of course, but no meddling by 1600 Pennsylvania Ave.