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DRAFT

June 2, 1989

Mr. Ed Gray

P.O. Box 56000 w
Miami, FL 33156

Dear Mr. Gray:

Your letter to Senator McCain dated May 30, 1989, allegedly describes a April 2, 1987 meeting between you Senators McCain, Glenn, Cranston and myself. There is little relationship between the meeting you describe and the one we held. Your recollection

of the meeting is so distorted as to bear no resemblance to fact.

I do not plan to get into an item by item refutation of the charges in your letter. However, I clearly recall that our meeting focused primarily on your insistence that you knew nothing of Charlie Keating or Lincoln Savings and that you recommended we meet with your regulators from San Francisco. You specifically urged us to meet with the San Francisco regulators and would not discuss any specifics of the case, pleading ignorance.

Your new allegations of 'a deal' are simply false. I am surprised and disappointed that a former high Administration official would stoop to this kind of duplicity.

Sincerely,

DENNIS DÉCONCINI

United States Senator

DDC/1

Chas

This is the draft Magnes as have agreed upon. We will run it by Sennis when he calls in. -LAS

SPECIAL COUNSEL
EX. 508

M 84235

DECLARATION OF PETE WILSON

I, PETE WILSON, hereby declare:

1. I am the Governor-elect of California. My business address is 720 Hart Senate Office Building, Washington, DC 20510. I have served as a United States Senator from California since 1983. From 1971 to 1983, I was Mayor of San Diego, California. Prior to 1971, I was a member of the California

State Legislature.

2. A large proportion of the nation's thrift institutions is based in California. I have received campaign contributions from many individuals associated with the savings and loan industry, though they constitute, in the aggregate, a small percentage of total amount of campaign funds I have raised. In 1985, I received a total of approximately $16,000 in contributions to my 1988 re-election campaign from Charles H. Keating, Jr. and individuals associated with American Continental Corporation ("ACC") and Lincoln Savings and Loan Association ("Lincoln"). I have no recollection that I or anyone acting on my behalf asked for these contributions. I also have no recollection of Mr. Keating, or anyone associated with Mr. Keating, offering to contribute to my campaign.

SPECIAL COUNSEL

I first became aware of the Keating-related contributions when a reporter informed me that he had determined that I had received contributions from individuals associated with Mr. Keating. This inquiry occurred at approximately the time that Mr. Keating made a public statement that he hoped that his campaign contributions had influenced the recipients of those contributions. Thereafter, I returned all of the contributions from Mr. Keating and individuals associated with him.

3. I have reviewed the agenda of Mr. Keating for November 21, 1985, which indicates that Mr. Keating scheduled a meeting with me for 2:30 p.m. on that date. I have no recollection of meeting or speaking with Mr. Keating on this date or at any other time.

4. Mr. Keating never asked me to intercede on behalf of Lincoln with the Federal Home Loan Bank Board ("FHLBB") on any matter relating to Lincoln. Lincoln did provide to my staff materials criticizing the FHLBB's direct investment rule and seeking its modification, but neither I nor any member of my staff took any action as a result. Furthermore, neither I nor any member of my staff ever contacted the FHLBB with regard to any other matter relating to Lincoln.

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