151
         1     respond to the press.

         2          Q    Was there anyone else assisting you

         3     in providing policy and political advice to

         4     the President at that time?

         5          A    No.

         6          Q    You were the number one guy?

         7          A    Well, a lot of people would dispute

         8     that, but I was the only person with that

         9     title.

        10          Q    Did you also provide policy and

        11     political advice to Hillary Rodham Clinton as

        12     part of your duties and responsibilities?

        13          A    That wasn't my -- was one of my

        14     specified duties.  If Mrs. Clinton called me

        15     and asked my advice on something, I would try

        16     to give my best advice.

        17          Q    But she did call you on a fairly

        18     regular basis?

        19          A    Sure, depending on, you know, the

        20     time.

        21          Q    What were Mrs. Clinton's duties and

        22     responsibilities between the date the









                                                             152
         1     administration became the administration in

         2     January 20th, 1993, and the date that you

         3     left your job as communications director?

         4               What did you perceive to be Hillary

         5     Rodham Clinton's duties and responsibilities

         6     as First Lady?

         7          A    Well, it wasn't for me to say what

         8     her duties and responsibilities were.

         9          Q    From your perspective.

        10          A    Yeah, as First Lady of the United

        11     States, she had a number of ceremonial

        12     duties.  Managing the East Wing of the White

        13     House, managing the Social Office of the

        14     White House, state dinners, receptions and

        15     the like, and that's quite a bit of work.

        16               She also has to represent and be

        17     with the President on state occasions,

        18     different public events.

        19               Beyond that she -- at the beginning

        20     of the administration she was quite involved

        21     in the development of the President's health

        22     care policy.









                                                             153
         1          Q    Is it not the case that Hillary

         2     Rodham Clinton was the day-to-day manager of

         3     the White House, in terms of making sure it

         4     functioned?

         5          A    No.

         6          Q    What's funny about that?

         7          A    What's funny about that is it's a

         8     very leading question.  It contains the

         9     conclusion within the question.  It's not

        10     really a question. It's a political

        11     statement.

        12          Q    I'm asking you the question.

        13          A    I -- and I answered it.

        14          Q    Isn't it true she managed the White

        15     House, hands-on control over matters other

        16     than health care?

        17          A    I already answered that question?

        18          Q    Is the answer yes?

        19               THE WITNESS:  Could you, please,

        20     read my answer two questions ago?

        21                    (The reporter read the record

        22                    as requested.)









                                                             154
         1               BY MR. KLAYMAN:

         2          Q    Did she have hands-on control on

         3     health care issues at that time?

         4          A    She was managing health care, as

         5     the President publicly announced in early

         6     January 1993.

         7          Q    I take it Mrs. Clinton sometimes

         8     consulted with you over controversies

         9     surrounding the White House such as

        10     Whitewater, Travelgate, Filegate, et cetera?

        11          A    She may ask me questions about it,

        12     sure.  I never talked to her about the FBI

        13     files.  Again, to get to the matter at hand,

        14     I never discussed the FBI files.  Let me be

        15     clear and unequivocal on that.  I never

        16     discussed the FBI files matter with the First

        17     Lady, I have no independent knowledge of the

        18     FBI files matter.

        19               To my knowledge, the First Lady had

        20     no independent knowledge of the FBI files

        21     matter.  She neither directed anyone to get

        22     the FBI files nor read them after they came









                                                             155
         1     out, neither did I.  I never discussed it

         2     with her.

         3          Q    If you never discussed it with her,

         4     how do you know she never had any firsthand

         5     knowledge?

         6          A    I said to my knowledge at the

         7     beginning of the sentence.

         8          Q    How are you so sure that she never

         9     had no knowledge if you never discussed it

        10     with her?

        11          A    Because since then I have read

        12     numerous -- I mean numerous press accounts,

        13     matters before the congressional committees

        14     where that was her testimony.

        15               You know, this is -- now we're

        16     several years after the fact this has been

        17     looked into by a host of independent

        18     organizations.

        19          Q    During the time that you were

        20     communications director, did you ever discuss

        21     the FBI files matter with the President?

        22          A    No.









                                                             156
         1          Q    Not even once?

         2          A    Nope.

         3          Q    Never even mentioned the word "FBI

         4     files"?

         5          A    No.

         6          Q    Wasn't of interest?

         7          A    Absolutely not.

         8          Q    Minor matter?  Not worthy of your

         9     time?

        10          A    I hate to help you out with your

        11     questions, but you asked me did I ever

        12     mention it at a time when I was

        13     communications director.  I was

        14     communications director up until May 30th or

        15     May 31st, 1993.  I never thought about FBI

        16     files before May 30th, 1993.

        17               MR. KLAYMAN:  I show you what I

        18     will ask the court reporter to mark as

        19     Exhibit 4.

        20                    (Stephanopoulos Deposition

        21                    Exhibit No. 4 was marked for

        22                    identification.)









                                                             157
         1               BY MR. KLAYMAN:

         2          Q    I will show you what I've asked the

         3     court reporter to mark as Exhibit 4.

         4          A    Yeah.

         5          Q    Have you ever seen this document

         6     before, Mr. Stephanopoulos?

         7          A    No.

         8          Q    This is a memorandum that was

         9     written by Agent Dennis Sculimbrene,

        10     S-c-u-l-i-m-b-r-e-n-e.  Can you turn your

        11     attention to the second paragraph?  I will

        12     read this into the record, Bernard Nussbaum.

        13     "Counsel to the President advised that he has

        14     known the appointee for a period of time,

        15     that he employed in the new administration.

        16     He had come highly for a long period of time.

        17               He was confident that the appointee

        18     lives a circumspect life and was not aware of

        19     any illegal drug or alcohol problems.

        20               He said that the appointee will

        21     work at the White House on security matters.

        22     He said that in the short period of time that









                                                             158
         1     the appointee has worked for him he has been

         2     completely satisfied with his performance,

         3     conduct and productivity.  He recommended the

         4     appointee for continued access in his current

         5     capacity."

         6               Does that refresh your recollection

         7     as to whether you've ever seen this?

         8               MR. BRAND:  Did he say he didn't

         9     remember seeing it?

        10               MR. KLAYMAN:  Well, this may

        11     refresh his recollection.

        12               MR. BRAND:  Yeah.  I don't know

        13     that it needs to be refreshed yet.

        14               THE WITNESS:  I've never seen this.

        15               BY MR. KLAYMAN:

        16          Q    Perhaps I skipped over it.  My

        17     colleague tells me I did inadvertently.

        18               Under that entry for Bernard

        19     Nussbaum, "He had come highly recommended to

        20     him by Hillary Clinton, who has known his

        21     mother for a longer period of time."

        22               Do you see that statement?









                                                             159
         1          A    I do.

         2          Q    Are you aware that Sculimbrene

         3     wrote a memo of an interview he had with

         4     Nussbaum where he recorded that Livingstone

         5     was actually recommended by Hillary Clinton?

         6          A    I know that it's been reported in

         7     the press.  I also know that Mrs. Clinton and

         8     Craig Livingstone's mother, according to

         9     subsequent press reports that I have read

        10     since this came up, had both denied that

        11     being the case.

        12          Q    Did you ever discuss this issue of

        13     Hillary Clinton's recommendation of Craig

        14     Livingstone, as alleged, with Mrs. Clinton?

        15          A    No.

        16          Q    Did you ever discuss it with the

        17     President?

        18          A    I'm not going to respond to my

        19     conversations with the President.

        20               MS. SHAPIRO:  Just a moment.

        21                    (Counsel conferred with

        22                    witness)









                                                             160
         1               MR. KLAYMAN:  Let the record

         2     reflect that Ms. Shapiro, Ms. Paxton and

         3     Mr. Brand are consulting with the witness.

         4               THE WITNESS:  I'm sorry.  The

         5     answer to the previous question is no.

         6               BY MR. KLAYMAN:

         7          Q    No, what?  You never discussed this

         8     with the President?

         9          A    I did not.

        10          Q    You did not?

        11          A    No.

        12          Q    Have you ever discussed this issue

        13     with anyone, whether Hillary Clinton strongly

        14     recommended Craig Livingstone for the job as

        15     Director of White House Security?

        16          A    Well, again, since reports were in

        17     the press and since there was dozens of

        18     articles about it and other congressional

        19     investigations and it was a matter of public

        20     record, I'm sure I have had discussions since

        21     then.  I did not have any discussions prior

        22     to that.









                                                             161
         1          Q    Who have you had discussions with

         2     since then?

         3          A    About?

         4          Q    About this issue of Hillary Clinton

         5     recommending Craig Livingstone.  Let's start

         6     with inside the White House.

         7          A    I couldn't tell you.  I mean I've

         8     never had an independent investigation.  I

         9     was sure this matter was in the press at the

        10     time.  I remember it being in the press at

        11     the time.

        12               What I can say with certainty is

        13     that when it was in the press, I'm sure it

        14     was a matter of discussion, but I can't tell

        15     you who I talked to or when.

        16          Q    Who would you have discussed it

        17     with in the ordinary course of your duties

        18     and responsibilities at the White House?

        19          A    If it was in the news that day,

        20     anybody that I might have run into.

        21          Q    Who did you work with generally

        22     other than the President in your first job as









                                                             162
         1     communications director?  Who was working for

         2     you or who was working with you at the White

         3     House?

         4          A    Well, again, maybe -- I mean I

         5     can't believe that I'm having to refresh your

         6     recollection of the timing of the case, but

         7     when this story broke, I was no longer

         8     communications director.

         9          Q    Well, let's take after you were

        10     communications director.  You're right.

        11               Who did you discuss it with?  Who

        12     was in your entourage of people?

        13          A    I had no entourage.  I had one

        14     executive assistant.  But I came into contact

        15     with anywhere from 2 dozen to 400 people a

        16     day.

        17          Q    Let's drop this right now.  We'll

        18     get back to it.

        19               Did there come a point in time when

        20     your job changed at the White House?

        21          A    As I said, my job changed on May

        22     30th or so 1993.









                                                             163
         1          Q    What was your new title?

         2          A    Senior advisor to the President for

         3     policy and strategy.

         4          Q    Why did you job title change?

         5          A    That is --

         6          Q    Were you fired from your previous

         7     job?

         8          A    I was moved.

         9          Q    You were fired from that job, were

        10     you not?

        11          A    I don't think so, but I -- I could

        12     have done a better job in my first job.

        13          Q    It was not a voluntary change, was

        14     it not?

        15          A    Well, I think it could have been

        16     handled better, but I was very happy for the

        17     change.

        18          Q    Who is it that told you that your

        19     job was going to be changed?

        20          A    Mack McLarty.

        21          Q    What did Mack McLarty tell you were

        22     the reasons, if any, for your change?









                                                             164
         1               MS. SHAPIRO:  Hang on a second,

         2     please.

         3                    (Counsel conferred with

         4                    witness)

         5               MS. SHAPIRO:  You can ask the

         6     question again.  I'm fairly confident I'm

         7     going to instruct him not to answer, but you

         8     can try to phrase it in such a way as to not

         9     reveal any Presidential communications.

        10               BY MR. KLAYMAN:

        11          Q    What was your knowledge as to why

        12     your job was being changed?

        13          A    There were a lot of different

        14     reasons for it, but I will just be frank with

        15     you right now, I mean if you want to ask me

        16     about the FBI files, I'll be happy to answer

        17     it.

        18               But I -- I fail to see what that

        19     move on May 30th, 1993, that had nothing to

        20     do with the FBI files, before it ever broke,

        21     how that could be helpful.  I was moved for a

        22     variety of reasons.









                                                             165
         1          Q    What were the reasons that you know

         2     you were moved for?

         3          A    For organizational matters inside

         4     the White House.

         5          Q    Because your superiors were

         6     dissatisfied with your organizational

         7     abilities?

         8          A    You'll have to ask them.

         9          Q    Is that what you were told?

        10          A    You can ask them.

        11          Q    Is it your independent knowledge as

        12     of today that you were moved because you were

        13     considered to be disorganized?

        14          A    That wasn't my answer.

        15               MS. SHAPIRO:  I object to getting

        16     into any of the reasons that --

        17               BY MR. KLAYMAN:

        18          Q    I don't know what organizational

        19     means and I'm entitled to ask.

        20          A    What I do know is that my being

        21     moved had nothing to do with the FBI files

        22     matter, if you would like to ask me about the









                                                             166
         1     FBI files matter.

         2          Q    I'm entitled to ask you for a

         3     number of different reasons.  Your lawyers

         4     know why I can ask you these questions and

         5     either we can make it simple or we can make

         6     it hard.  I'm a patient person.

         7          A    Me too.  Probably not as patient as

         8     you though.

         9          Q    Probably not.

        10               MR. BRAND:  He answered the

        11     question.  He said for organizational reasons

        12     inside the White House.

        13               MR. KLAYMAN:  Well, that's not what

        14     I'm looking for in terms of the reasons.

        15     That's a vague response.

        16               MR. BRAND:  You can't make him

        17     testify of things he doesn't know.

        18               BY MR. KLAYMAN:

        19          Q    Were you removed because people

        20     were dissatisfied with your prior job

        21     performance?

        22               MR. BRAND:  Well, again, you keep









                                                             167
         1     putting words in his mouth.  He tells you

         2     that he's done it for organizational reasons

         3     and you say were you removed because people

         4     weren't happy.

         5               MR. KLAYMAN:  I'm entitled to,

         6     Mr. Brand, as you know --

         7               MR. BRAND:  Larry, again, if you

         8     want to testify, come on over and put the

         9     mike on and testify.

        10               MR. KLAYMAN:  I'm entitled to ask

        11     leading questions.  This is, obviously, an

        12     adverse witness.  There's no dispute that

        13     he's hostile.

        14               BY MR. KLAYMAN:

        15          Q    Were you moved because people were

        16     unhappy?  Were you moved because of your job

        17     performance?

        18               MS. SHAPIRO:  I'm going to object

        19     at this point.  This is completely irrelevant

        20     and besides the relevancy, this gets into an

        21     area where it reveals privileged

        22     communications, and I'm going to instruct the









                                                             168
         1     witness not to answer questions about why he

         2     wasn't or was removed from his prior

         3     position.

         4               MR. KLAYMAN:  Certify it.

         5               MR. KLAYMAN:  Are you representing

         6     him at this?

         7               MS. SHAPIRO:  Yes, I am.

         8               MR. KLAYMAN:  In what capacity?

         9               MS. SHAPIRO:  In his capacity as a

        10     former employee of the White House.

        11               MR. KLAYMAN:  Mr. Brand, are you

        12     representing him personally?

        13               MR. BRAND:  I'm representing him

        14     for all the purposes that conceivably could

        15     come up out of this deposition.

        16               BY MR. KLAYMAN:

        17          Q    To the best of your knowledge,

        18     Mr. Stephanopoulos, were you removed because

        19     people were dissatisfied with your

        20     performance?  Yes or no?

        21               MS. SHAPIRO:  You have asked that

        22     question and I've instructed the witness not









                                                             169
         1     to answer.

         2               BY MR. KLAYMAN:

         3          Q    Was the basis for your removal

         4     dishonesty?

         5               MS. SHAPIRO:  That's the same

         6     question asked in a another way.  I'm

         7     instructing the witness not to answer the

         8     question.  I think you've certified it.  We

         9     can address it however you want to address it

        10     and we'll move on.

        11               MR. KLAYMAN:  Certify it.

        12               BY MR. KLAYMAN:

        13          Q    Were you disciplined at the White

        14     House?  Is that why you were removed?

        15               MS. SHAPIRO:  Again, it's the same

        16     question.  I'm instructing him not to answer

        17     that question.

        18               MR. KLAYMAN:  Certify it.

        19               BY MR. KLAYMAN:

        20          Q    Were you removed because you had

        21     breached national security?

        22               MS. SHAPIRO:  Again, I object to









                                                             170
         1     the line of questioning.  It goes to the

         2     privileged communication, the same privileged

         3     communication that you're trying to elicit

         4     answers, and I'm instructing him not to

         5     answer these questions.

         6               BY MR. KLAYMAN:

         7          Q    Were you removed because you had

         8     access to FBI files improperly?

         9               MS. SHAPIRO:  He can answer that

        10     question.

        11               THE WITNESS:  No.

        12               MR. KLAYMAN:  You've waived every

        13     objection.

        14               MS. SHAPIRO:  No, I don't think so.

        15               MR. KLAYMAN:  Are you going to let

        16     him answer the others?

        17               MS. SHAPIRO:  No.

        18               MR. KLAYMAN:  Certify it.

        19               MS. SHAPIRO:  I told you -- well,

        20     we're not going to get into a legal

        21     discussion.

        22               THE WITNESS:  But for the record,









                                                             171
         1     the answer to that is no.

         2               BY MR. KLAYMAN:

         3          Q    What were the duties and

         4     responsibilities that were assigned to you in

         5     your second post at the White House?

         6               MR. BRAND:  Asked and answered.

         7               MR. KLAYMAN:  I got the title.  I

         8     didn't get the duties and responsibilities.

         9               MR. BRAND:  You got the duties.  He

        10     said that he was responsible for policy, he

        11     gave you the specific areas of the policy,

        12     and political advice based on that.

        13               BY MR. KLAYMAN:

        14          Q    Is that your first job or your

        15     second job?

        16          A    It was the second one, as I

        17     answered.

        18          Q    Now, how long did you stay at the

        19     White House?

        20          A    I already answered that.

        21          Q    Can you just give us a frame of

        22     reference?  If will be faster?









                                                             172
         1               MR. BRAND:  It's already in the

         2     record.  It's been testified to as the

         3     precise date he was there and when he left.

         4               BY MR. KLAYMAN:

         5          Q    Give us the quick response.

         6          A    I already answered that question.

         7          Q    Do you want to play games or what?

         8               MR. BRAND:  No, you're the one

         9     playing games, Larry.

        10               MR. KLAYMAN:  I'm not playing any

        11     games.

        12               MR. BRAND:  These questions have

        13     already been asked.  You are taking up the

        14     time of this witness going over ground you've

        15     already asked.

        16               MR. KLAYMAN:  I'm just trying to

        17     get a frame of --

        18               MR. BRAND:  I'm not going to

        19     tolerate this and we'll end the deposition,

        20     yes, we will, and you can go to Judge

        21     Lamberth, and I will be right there with you,

        22     and we can go over the abusive nature of this









                                                             173
         1     practice of yours of going over questions

         2     that were already asked.  No witness has to

         3     put up with that kind of nonsense.

         4               MR. KLAYMAN:  Mr. Brand, you can do

         5     whatever you want at your own risk.  If you

         6     want to end the deposition on your own, I

         7     don't condone it, but I will certainly move

         8     for sanctions.

         9               MR. BRAND:  I haven't done that

        10     yet, but I will if you continue repeatedly

        11     asking the same questions and if you don't

        12     listen to his testimony, go back and read it

        13     after the fact.  But we're not going to go

        14     over the same ground two and three and four

        15     times.

        16               MR. KLAYMAN:  You're instructing

        17     him not to answer?

        18               THE WITNESS:  I already answered

        19     it.

        20               MR. BRAND:  Yes.  It's been asked

        21     and answered.

        22               MR. KLAYMAN:  Certify it.









                                                             174
         1               MR. BRAND:  Certify it to the Pope

         2     if you want, Larry, but we're not going to

         3     have this go on for six more hours.

         4               THE WITNESS:  Could I ask the court

         5     reporter to --

         6               MR. KLAYMAN:  Why is it necessary

         7     to disparage somebody's religion, Mr. Brand,

         8     incidentally, a religion that you're not a

         9     part of.  I don't think that's appropriate.

        10               MR. BRAND:  How do you know what my

        11     religion is?

        12               MR. KLAYMAN:  Well, I don't think

        13     it's necessary to disparage Catholics?

        14               THE WITNESS:  May I please ask the

        15     court reporter to find the answer when I said

        16     I left the White House.

        17                    (The reporter read the record

        18                    as requested.)

        19               BY MR. KLAYMAN:

        20          Q    Now, during that period did the FBI

        21     files controversy arise?

        22          A    Certainly.









                                                             175
         1          Q    How did you learn about it?

         2          A    I read the newspaper or got a phone

         3     call from reporter.  I don't know which one.

         4          Q    What reporter did you get a phone

         5     call from?

         6          A    I don't remember.  Everybody was

         7     working on it.

         8          Q    Do you remember the name of the

         9     publication?

        10          A    It was one of the major

        11     publications.  I don't remember which one.

        12          Q    What did you learn about the files

        13     controversy at that time?

        14          A    I don't remember what I learned at

        15     that moment.  I did learn that files had been

        16     collected mistakenly over time.

        17          Q    You learned that from the reporter?

        18          A    Well, from everything that happened

        19     after the story broke.

        20          Q    The reporter didn't tell you that

        21     the files were mistakenly obtained, did he or

        22     she?









                                                             176
         1          A    I don't remember what the reporter

         2     said exactly.

         3          Q    Was it a he or she?

         4          A    Couldn't tell you.

         5          Q    What did you do after you found

         6     that out from this particular reporter?

         7          A    I don't remember precisely.

         8          Q    Tell us imprecisely?

         9          A    It was a matter of public record

        10     for some time in the White House.  I'm

        11     certain that at various times it was a matter

        12     of discussion.

        13               I couldn't detail when the

        14     discussions were -- were in the -- I do know

        15     that as this matter was looked at -- again, I

        16     don't remember the day it broke or the day it

        17     stopped being written about.

        18               But I do remember from the day it

        19     broke it was investigated by the senate, the

        20     house, the Office of Independent Counsel and

        21     over --

        22          Q    I'm not asking you for that.









                                                             177
         1     Please don't waste my time.

         2          A    And over the course of that period

         3     of time, the period of time in which I was in

         4     the White House, January 1993 through

         5     December 31st, 1996, I discovered and learned

         6     and read mostly on the public record -- I

         7     would say probably almost entirely on the

         8     public record -- that this was a mistake.

         9               That Anthony Marceca and Craig

        10     Livingstone acted on their own.  That was my

        11     judgment based on everything that I read.

        12     What I can testify with certainty is that I

        13     never ordered them to be collected.  I never

        14     saw an FBI file in my life.

        15          Q    I object to this as nonresponsive.

        16     I move to strike and you're taking up my

        17     time.

        18          A    I'm happy to leave if you want me

        19     to leave.

        20          Q    Oh, you're not going to leave

        21     believe me.  I'm sure you would be happy to

        22     leave.









                                                             178
         1               After you discovered that this

         2     occurred, who did you go and talk to inside

         3     the White House after this reporter called

         4     you?

         5          A    I might have talked to any one of a

         6     number of people.

         7          Q    Who?

         8          A    Oh, at some point I'm certain I

         9     spoke to Mike McCurry, at some point I'm sure

        10     I spoke to Rahm Emanuel, at some point I'm

        11     sure I spoke to Jane Sherburne.  I don't know

        12     when or where or how.  It was a long time.

        13          Q    This was obviously a pretty

        14     significant matter when it broke, was it not?

        15          A    Well, there were significant

        16     questions raised.  I think the more it was

        17     looked into it the more, the less significant

        18     it seemed to be.

        19          Q    I'm asking at the time.  At the

        20     time was it considered to be an important

        21     matter at the White House?

        22          A    It was considered to be a serious









                                                             179
         1     question.

         2          Q    Did you seek or do you know of

         3     anyone else seeking any kind of clarification

         4     as to whether the White House, having

         5     obtained FBI files, would raise any legal

         6     ramifications?

         7          A    I didn't.  That would be the White

         8     House counsel I guess, but I didn't.

         9          Q    Did you consult with the White

        10     House counsel at the time?

        11          A    It's very -- I'm certain that I had

        12     discussions with them at the time.  I really

        13     don't know if the word "consult" is the right

        14     word.

        15          Q    Who?

        16          A    At least Jane Sherburne, maybe

        17     others.

        18          Q    Did you go see her or did she call

        19     you?

        20          A    I don't remember.

        21          Q    What did you discuss with Rham

        22     Emanuel about the FBI file matter when it









                                                             180
         1     broke?

         2          A    If I discussed it with him.  I was

         3     just trying to be comprehensive.  I can't

         4     swear that I discussed it with him.  If I

         5     did, it would be how much of a political

         6     problem is this.

         7          Q    What did Mr. Rham Emanuel tell you?

         8          A    I don't know.

         9               MS. SHAPIRO:  Object.

        10               MR. KLAYMAN:  You know, you don't

        11     have a privilege here because that's what

        12     this case is about.  Are you saying I can't

        13     ask any questions?  Is that what you're

        14     saying?

        15               MS. SHAPIRO:  No, I'm objecting to

        16     asking about specific questions that rise to

        17     the level of being Presidential

        18     communications.

        19               MR. KLAYMAN:  How is Rham Emanuel

        20     Presidential communications?

        21               MS. SHAPIRO:  I'm not going to get

        22     into a legal argument about it.









                                                             181
         1               MR. KLAYMAN:  Are you instructing

         2     him not to answer?

         3               MS. SHAPIRO:  Not at the moment,

         4     but I'm cautioning you --

         5               MR. KLAYMAN:  Then let him answer.

         6               MS. SHAPIRO:  -- that you're

         7     getting into an area which I will instruct.

         8               MR. KLAYMAN:  I don't need your

         9     caution, Ms. Shapiro.

        10               MS. SHAPIRO:  Please don't speak

        11     over me.

        12               MR. KLAYMAN:  I wasn't.

        13               MS. SHAPIRO:  I'm giving you the

        14     courtesy of speaking when you speak.  Can you

        15     do the same for me?

        16               MR. KLAYMAN:  Well, either you make

        17     an objection or you don't make an objection.

        18               MS. SHAPIRO:  I objected.

        19               MR. KLAYMAN:  One or the other, in

        20     or out, up or down.  Are you making an

        21     objection?

        22               MS. SHAPIRO:  Yes.









                                                             182
         1               MR. KLAYMAN:  Are you asking him

         2     not to respond?

         3               MS. SHAPIRO:  Not at the moment.

         4     I'm cautioning you that you're entering an

         5     area in which I will.

         6               MR. KLAYMAN:  Well, don't caution

         7     me.  Just make an objection.

         8               BY MR. KLAYMAN:

         9          Q    What did Mr. Emanuel tell you.

        10          A    I don't remember.

        11          Q    General subject matter, do you

        12     remember what he told you?

        13          A    I already answered that.

        14          Q    Was he concerned?

        15          A    I don't remember the conversation.

        16     You asked me is it possible I talked to him

        17     and I said it's possible I talked to him.  I

        18     don't remember the specific conversation.

        19          Q    Have you ever talked to Rham

        20     Emanuel at all about this?

        21          A    I said it's very possible that I

        22     have.









                                                             183
         1          Q    What was discussed with Mr. Emanuel

         2     up to the time you left the White House about

         3     files, FBI files?

         4          A    Probably didn't talk about it

         5     again.  I don't remember any specific

         6     discussions.

         7          Q    What did you discuss with Mike

         8     McCurry after this issue broke?  Same

         9     answers?

        10          A    Yes.

        11          Q    Jane Sherburne?

        12               MS. SHAPIRO:  That I object to on

        13     the basis of attorney-client privilege.

        14               BY MR. KLAYMAN:

        15          Q    You probably can't remember anyway.

        16     Can you remember what you said to her?

        17               MS. SHAPIRO:  You can testify only

        18     if you can't remember, but any substance of

        19     communications between Mr. Stephanopoulos

        20     when he was employed at the White House and

        21     counsel's office are privileged.

        22               THE WITNESS:  I don't remember the









                                                             184
         1     substance of the specific conversations.

         2               BY MR. KLAYMAN:

         3          Q    Do you remember general substance?

         4          A    I think, generally, what I remember

         5     is what later came out in the press, that

         6     this was a mistake, an unauthorized mistake

         7     by two people, which is -- which every

         8     independent body has looked at this in

         9     discovery.

        10          Q    I'm talking about that at the time,

        11     Mr. Stephanopoulos.

        12          A    I gave my answer.

        13          Q    You can't remember?

        14          A    No, that's not what I said.  You

        15     just don't listen, do you?

        16          Q    Well, it just broke, the story just

        17     broke and you already made the decision that

        18     there was nothing to this even immediately on

        19     the spot in your discussion with

        20     Ms. Sherburne?

        21          A    That's not what I said either.

        22          Q    Then what did you discuss with









                                                             185
         1     Ms. Sherburne around the time that the story

         2     broke?

         3          A    I don't remember the specification

         4     conversations, but I -- I do remember the

         5     information that came out as the information

         6     that was later reported in the press; this

         7     was a mistake by two people, that it was not

         8     something that was authorized by high levels

         9     of the White House.

        10               Frankly, it was something that none

        11     of us ever knew about it.  We were all quite

        12     surprised by it and shocked and disappointed

        13     about it and took steps to rectify it.

        14               As the President announced pretty

        15     close to the time the story broke, that he

        16     was upset about this as well, that he took

        17     steps to make sure it didn't happen again,

        18     that as far as he could, there -- it was a

        19     mistake.

        20          Q    Now, after the story broke you did

        21     discuss the files matter with the President,

        22     did you not?









                                                             186
         1               MS. SHAPIRO:  One moment.

         2                    (Counsel conferred with

         3                    witness)

         4               MS. SHAPIRO:  I will let the

         5     witness answer yes or no.  He will not,

         6     though, reveal any substance of any

         7     conversation.

         8               THE WITNESS:  My guess is that at

         9     some point when he was being prepared to

        10     answer press questions, I'm certain that this

        11     matter came up in the briefing.

        12               BY MR. KLAYMAN:

        13          Q    Was it a briefing between you and

        14     the President or were other people present?

        15          A    I'm sure there were other people.

        16          Q    Who was present?

        17          A    I don't know, but, generally, it

        18     may have included McCurry, it may have

        19     included Rham.  I don't know who else.  It

        20     could have included the Chief of Staff.  I

        21     mean --

        22          Q    Who was the Chief of Staff at the









                                                             187
         1     time?

         2          A    Since you don't seem to remember at

         3     the time who it was, maybe you can refresh my

         4     memory.  When was it?

         5          Q    Well, you were the one who was

         6     advisor to the President.  Who was the Chief

         7     of Staff at the time?

         8          A    When did the story break?

         9          Q    Was it Panetta?

        10          A    When did the story break?

        11          Q    June '96.

        12          A    Oh, which would explain why I

        13     wouldn't have known anything about it when I

        14     was communications director in May of 1993.

        15     In June of 1996, Mr. Leon Panetta were Chief

        16     of Staff.

        17          Q    You were at your second job,

        18     advisor in policy and politics, correct?

        19          A    Strategy.

        20          Q    Strategy?

        21          A    Political strategy, yeah.

        22          Q    Right.  You had this briefing with









                                                             188
         1     the President?

         2          A    I assume there were briefings

         3     before the press conference.  I can't tell

         4     you the date.

         5          Q    Who called the briefing?

         6          A    I don't know.

         7          Q    Who would have called in the

         8     ordinary course?  There have been several

         9     scandals in the White House?  Who would have

        10     called it for a scandal matter?

        11          A    I didn't say that.  You said that.

        12          Q    Shall I use the word "controversy"?

        13     Do you like that better?

        14          A    I'm just going to choose my own

        15     word.

        16          Q    I've heard you use the word

        17     "scandal" quite a bit on ABC with Sam

        18     Donaldson and Cokie Roberts.  Is that an

        19     incorrect characterization for Filegate?

        20     It's not a scandal.

        21          A    Actually I think that -- I'm glad

        22     you asked because I think that the more the









                                                             189
         1     facts have come out about the FBI files

         2     matter and the inappropriate collection of

         3     FBI files by people, by Craig Livingstone and

         4     Tony Marceca, turns out that, in fact, it's

         5     not a scandal.

         6               What it is, is a terrible mistake

         7     and that because of that terrible mistake

         8     there was a potential that people's rights,

         9     including the rights of your clients, may

        10     have been violated.  No one is denying that

        11     for a moment.

        12               What I am denying is that anyone at

        13     high levels of the White House ordered that

        14     to be done, that anyone at high levels of the

        15     White House ever read the -- the FBI files of

        16     your clients.

        17               Therefore, even though there was a

        18     potential violation of rights, which is truly

        19     regrettable and should have never happened,

        20     there was no actual violation of rights

        21     because the files were not read.  Now -- and

        22     certainly they were not read by me.  No, I do









                                                             190
         1     not consider this to be a scandal.

         2          Q    Do you know whether the White House

         3     ever did an internal investigation of the

         4     files matter?

         5          A    I don't know actually.

         6          Q    You don't know?

         7          A    No.

         8          Q    You never came into the knowledge

         9     that one was done?

        10          A    I certainly never conducted one.  I

        11     don't remember that.

        12          Q    You don't have any personal

        13     knowledge that these files were turned over

        14     by the FBI as part of innocent mistake?  You

        15     don't have personal knowledge?

        16          A    Well, depends on what you consider

        17     personal knowledge.  I mean I've read it in

        18     the newspaper, I've reviewed congressional

        19     testimony, I've reviewed reports of testimony

        20     from the Grand Jury.  Everything I have read

        21     since June 1996, tells me that this was a

        22     mistake, not a scandal.









                                                             191
         1          Q    Did you ever do an investigation

         2     while you were at the White House to see

         3     whether it was a mistake?

         4          A    I think I already answered that

         5     question.

         6          Q    You personally, George

         7     Stephanopoulos?

         8          A    I answered that many times, but to

         9     answer it again, no.

        10          Q    Now, at this briefing session did

        11     the President ask you or anyone else who was

        12     present any questions about the FBI files

        13     matters?

        14          A    I don't remember a specific

        15     briefing session, but he responded to it in

        16     the press, so I know it came up.

        17          Q    Well, clearly you must have had a

        18     scold session with the President to try to

        19     figure out what had gone on and how you

        20     respond to it, correct?

        21          A    No, that's not clear at all

        22     actually.









                                                             192
         1               MS. SHAPIRO:  It's been asked and

         2     answered.

         3               THE WITNESS:  What's clear is that

         4     he was preparing to go before the press and

         5     that there was probably a briefing before he

         6     went out to go before the press.

         7               BY MR. KLAYMAN:

         8          Q    You participated in the briefing?

         9          A    My guess is I probably did.

        10          Q    Who spoke at the briefing?

        11          A    Got me.

        12          Q    No one spoke?

        13          A    I didn't say that.  I said I don't

        14     know.

        15          Q    Did you speak?

        16          A    Probably.

        17          Q    What did you say?

        18          A    I don't remember.

        19          Q    Do you remember generally?

        20          A    I generally would have said what I

        21     knew at the time or what I thought the

        22     questions from the press would be.









                                                             193
         1          Q    You took notes at that meeting,

         2     didn't you?

         3          A    No.  I wouldn't take notes at a

         4     meeting to brief the President for the press.

         5     It was a commonplace incident.

         6          Q    Commonplace incident?

         7          A    Uh-huh.

         8          Q    The FBI files was a commonplace

         9     incident?

        10          A    No, preparing the President for a

        11     press conference is very commonplace.  It

        12     might happen more than once a day.  It's not

        13     something you would take notes on.

        14          Q    But the FBI files matter was not a

        15     commonplace incident in itself would be your

        16     opinion?

        17          A    Well, it depends on what you

        18     consider the FBI files matter to be, the

        19     collection of the FBI files mistakenly by

        20     employees of the White House was a mistake,

        21     regrettable mistake.

        22          Q    We heard that many times, but,









                                                             194
         1     unfortunately, you've never conducted an

         2     investigation so you don't know, so I really

         3     don't care about that response.  I've had it.

         4     Asked and answered.  You gave your response.

         5     Now let's move on.

         6          A    Terrific.  Let's go.

         7          Q    In terms of what else was said at

         8     that meeting, who else spoke?

         9          A    I don't remember.

        10               MS. SHAPIRO:  I object to your

        11     mischaracterizing his testimony.  He doesn't

        12     remember any specific meeting.  That was his

        13     testimony.

        14               BY MR. KLAYMAN:

        15          Q    Subsequent time you left the White

        16     House have you had any kind of operations or

        17     anything, medical operations?

        18               MS. SHAPIRO:  Objection.

        19     Relevancy.

        20               MR. KLAYMAN:  I want to know --

        21     it's not irrelevant.  I want to find out why

        22     he has a loss of memory.









                                                             195
         1               BY MR. KLAYMAN:

         2          Q    Have you had any operations, any

         3     kind of operations, neurological?

         4          A    I have not and I would -- I would

         5     object to your -- your conclusion that I've

         6     had a loss of memory.

         7               To not be able to remember one of

         8     approximately -- between 1500 and 10,000

         9     press briefings I had with the President over

        10     the course of six years, to not remember on

        11     March 9th, 1998, a specific conversation

        12     sometime in June 1996, a date which you

        13     couldn't even get correct within three years

        14     and this is all you do all day, is not an

        15     incomprehensible loss of memory.  It's

        16     perfectly natural.

        17          Q    You know what I do all day,

        18     Mr. Stephanopoulos?

        19          A    If it's anything like this, I feel

        20     sorry for you.

        21          Q    Have you been on any medication

        22     since you've left the White House?









                                                             196
         1          A    I'm not going to answer that

         2     question.

         3          Q    Are you on any medication that

         4     could affect your memory?

         5          A    No.

         6          Q    Have you had any traumatic

         7     experiences since you've left the White

         8     House, physical shock or anything like that

         9     that could affect your memory, been in a car

        10     accident or anything like that?  Yes or no?

        11          A    I'm -- I'm thinking.

        12               MS. SHAPIRO:  While he's thinking I

        13     will insert an objection.

        14               MR. KLAYMAN:  He can respond.

        15               MS. SHAPIRO:  This is nothing more

        16     than intimidation tactics and harassing the

        17     witness.

        18               MR. KLAYMAN:  This is not

        19     intimidation.  It happens.  Look at

        20     Princess --

        21               MS. SHAPIRO:  You're talking over

        22     me again.  Please let me finish my very brief









                                                             197
         1     objections.

         2               MR. KLAYMAN:  You dribble on.  I

         3     don't know what you're saying.

         4               MS. SHAPIRO:  I'm making

         5     one-sentence, brief objections.

         6               MR. KLAYMAN:  What's the objection?

         7               MS. SHAPIRO:  My objection is that

         8     this is irrelevant, it's harassing and it's

         9     designed to intimidate the witness.

        10               MR. KLAYMAN:  It's not irrelevant.

        11     Look at Princess Diane's bodyguard.  He lost

        12     his memory in a car crash.

        13               BY MR. KLAYMAN:

        14          Q    Anything like that?

        15          A    Wow!  I mean I knew it could

        16     happen.  There is a way to get the Princess

        17     Diane story into anything, even the FBI files

        18     matter.

        19               To answer your question --

        20          Q    Have you been in any car crashes,

        21     any physical trauma?

        22          A    I have had no car crashes or









                                                             198
         1     physical trauma.  I would like to say on the

         2     record that the fact -- the questions you

         3     have asked me over the course of this

         4     deposition -- whether I have ever had a

         5     traffic accident, whether I have ever in my

         6     entire life perhaps used some sort of drug,

         7     whether I am on medication, whether I have

         8     had an accident.

         9               Your consistent badgering as to my

        10     memory all prove what I believe but was

        11     willing to suspend when I came in here,

        12     which is that this is harassment and a

        13     frivolous -- a frivolous exercise, but I will

        14     continue to try to answer the questions to

        15     the best of my ability, as I have.

        16               MR. KLAYMAN:  Certify this.

        17               BY MR. KLAYMAN:

        18          Q    The question was, have you had any

        19     kind of physical trauma since you left the

        20     White House, car accident, anything of that

        21     nature, fall downstairs?

        22          A    Could you read my last answer,









                                                             199
         1     please?  I'm sorry.

         2          Q    Yes or no?

         3          A    I already answered.

         4          Q    I didn't hear it.

         5          A    Well, then that's because you

         6     weren't listening, because you were talking.

         7          Q    Do you want to answer it and make

         8     it easy?

         9          A    No, I'd like the court reporter to

        10     read my answer where I already answered it.

        11          Q    That wasn't an answer.

        12          A    You didn't listen.  I mean at least

        13     be professional.

        14               MR. KLAYMAN:  Certify it.

        15               BY MR. KLAYMAN:

        16          Q    Do you want to get all your insults

        17     out at the beginning of the afternoon

        18     session, feel free.

        19          A    No, I --

        20          Q    We can move this thing along.

        21          A    If you would have listened, you

        22     would have answer heard my answer.









                                                             200
         1          Q    Play back his answer.

         2                    (The reporter read the record

         3                    as requested.)

         4               BY MR. KLAYMAN:

         5          Q    Have you had any kind of emotional

         6     trauma that could affect your memory,

         7     personal loss, anything to that effect, since

         8     you've left the White House?

         9          A    The answer to that question is no

        10     again and I would submit one more time that

        11     this has nothing to do with the FBI files

        12     matter, which happened in June 1996, which

        13     was before I went to the -- before I left the

        14     White House.

        15               I also testified before the House

        16     Government Oversight Committee and I believe

        17     the Office of Independent Counsel on this

        18     matter at that time and gave full and

        19     complete testimony, which I assume at least

        20     the house transcript was available for your

        21     review.

        22               But you're choosing to ignore any

 

 

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