The Michigan Daily -Saturday, July 26, 1980 Ten Cents Sixteen-Pages President's men tied to Anderson smear plot WASHINGTON (AP)-An unsigned political tract prepared by the Democratic National Committee to discredit independent presidential can- didate John Anderson is being distributed to federal employees by administration officials loyal to President Carter, reliable sources report. Federal campaign law prohibits the distribution of political literature ad- vocating the election or defeat of any candidate unless the document clearly states who paid for it. A DEMOCRATIC Party spokesman Violent night AP Photo A Chattanooga policeman dabs at his face Thursday night after suffering a gunshot wound in racially tense Alton Park, Tenn., a predominantly black neighborhood where gunfire punctuated a third night of racial unrest. See stor Page Civiletti advised Carter on Billy's Libyan ties WASHINGTON (AP)-Attorney General Benjamin Civiletti disclosed yesterday that he and President Carter discussed Billy Carter's ties with Libya in June. The Justice Department's internal security division began an immediate investigation to determine if Civiletti violated the law or department regulations. Civiletti said that during a White House meeting with the president, he advised that Billy Carter probably would not be prosecuted if he registered, belatedly, as an agent of Libya's radical Arab government. BOTH CIVILETTI AND the White House had previously denied that any such discussion had occurred. After Civilet- ti's announcement, the president's chief spokesman said the president discovered a reminder of the conversation about his brother as he was checking through his personal notes. Civiletti said his brief exchange with the president took place on June 17, six days after Billy Carter told Justice Department investigators he had received $220,000 from the Libyans. - The White House issued a statement Monday saying that on July 1, the president urged his brother to register as an agent and to fully disclose his activities. On July 14, the president's brother registered as an agent in the settlement of a Justice Department complaint. ON THURSDAY,.THE Senate established a nine-member panel to investigate Billy Carter's links with Libya and the role of the White House in the Justice Department's decision not to prosecute the president's brother for his initial failure to register asa foreign agent. Several hours after Civiletti disclosed his conversation with the president, the Justice Department's Office of Professional Responsibility opened an inquiry, to determine whether the attorney general's discussion with the president violated the law or department rules concerning disclosure of matters under investigation. Because Civiletti is the subject of the investigation and the next highest official in the department, Deputy Attorney General Charles Renfrew, was a participant in decisions in the Billy Carter case, progress reports on the investigation will be made to Solicitor General Wade McCree Jr., the third highest official in the department. PRESIDENT CARTER AND his wife Rosalynn both refused to comment on Civiletti's statement or any other aspect of the case yesterday as they walked past reporters on the South Lawn to address a group of florists. As reporters called questions to Carter, he waved, smiled and walked on. - Mrs. Carter said, "I don't have any comments. I think Jody Powell has already told you everything that I know." Later, when the president returned to the White House, he walked past reporters and television cameras so quickly that Mrs. Carter had to run to keep up. On Tuesday, White House press secretary Jody Powell said, "I think it is important to underline that he (the president) has not discussed this matter at all with the attor- ney general or anybody else in the Justice Department, acknowledged the derogatory material was prepared by the DNC with the help of the Carter-Mondale re-election committee and other Democratic groups. But he said it was intended as an "in- ternal document" only, and he charac- terized the lack of the legally required disclaimer as an error. The spokesman, Robert Neuman, said distribution of the unsigned 15- page document, entitled "The Real John Anderson," was halted shortly af- ter the material first was circulated among state party officials at a meeting in early June. BUT SOURCES who made the document available to The Associated Press with the understanding they would not be identified said duplicates have been distributed to government employees in recent days by political appointees. "I have no control of Xerox machines," Neuman said. The paper portrays Anderson, a Republican congressman from Illinois, as a party regular who, as an indepen- dent presidential candidate, is trying to deny a conservative, anti-labor, pro- nuclear and anti-consumer voting record. I A SPOKESMAN for the Anderson campaign characterized it as "full of misstatements and misrepresentations of (Anderson's) views and positions." The sources said middle-level federal employees were given copies and told to feel free to make photocopies and pass them along to colleagues. A copy obtained by the AP appears to have been duplicated numerous times. Ed Coyle, Anderson's deputy cam- paign manager, said of the report, "It's clear they're using the federal bureaucracy for political purposes, and I assume they're using Xerox machines - which are federal property - to do that. So it's gone beyond a mere political matter. It raises some serious ethical questions." COYLE ADDED that such activity would violate not only campaign laws See CARTER, Page 13