White House disavows deal by Hillary's brother

Saturday, January 1, 2000

WASHINGTON (AP) -- The White House told officials in the former Soviet republic of Georgia this week that President Clinton does not approve of a controversial international business deal sought by his wife's brother, administration officials said.

The deal would let Tony Rodham export hazelnuts from Georgia with cooperation from the leading political rival of Georgian President and Clinton ally Eduard Shevardnadze.

``If in fact this project is still going forward, we don't approve and will continue to make clear to Georgian officials that this venture has no connection with or sanction from the U.S. government,'' White House spokesman Joe Lockhart said today.

Officials said the White House contacted Georgian diplomats earlier this week to say the same thing, and urge that the issue not cause a rift between the two governments.

The Shevardnadze rival, Aslan Abashidze, has flaunted his connections to first lady Hillary Rodham Clinton's brothers, Tony and Hugh Rodham, as evidence he holds Clinton administration support.

That caused political discomfort for Shevardnadze and led to complaints from his government to Washington.

Lockhart said national security adviser Sandy Berger intervened in September, asking the Rodhams to drop the deal. The Rodhams ``indicated at that time that they would do so,'' Lockhart said. The White House did not explain why the Rodhams did not comply.

Both Rodhams were originally involved in the hazelnut deal, but Tony Rodham has since said that his brother is no longer involved.

Tony Rodham recently told The Washington Post that he is still pursuing a deal, although the terms have changed. Instead of investing in hazelnut production and then working to export the crop, Rodham said he is now interested only in exporting.