Walsh was perturbed by the conflict in Powell's statements. How could Powell in 1992 have a clear and specific memory of diaries, when in 1987 he had said Weinberger kept no diaries? One of these statements, each sworn, had to be false. Walsh even uncovered evidence showing that Powell had helped Weinberger maintain his diary notes.

Walsh might have explored this troubling contradiction during Weinberger's trial, for Powell was on the witness list. But on Dec. 24, 1992, days before the trial was to begin, a lame-duck President Bush pardoned Weinberger and five other Iran-Contra figures. "Powell was going to be an important witness during the Weinberger trail," says a lawyer who worked with Walsh. "What would have transpired we'll never know."

So what was Walsh to do about this Powell business? In his final report, Walsh noted that Powell's 1987 deposition statement "hardly constituted full disclosure." Walsh maintained that it had been "designed to protect Weinberger" and characterized it as "at least misleading." But, Walsh added, "It would have been difficult to prove that [Powell's 1987] deposition testimony was intentionally false." Thus, it had not warranted prosecution.

"This was a slippery issue for us," says another former staffer for Walsh. "Because of who Powell was and because the lie did not have to do with his own coverup, but was part of Caspar Weinberger's coverup. Even prosecuting Weinberger was difficult for us. But this wasn't a small matter for us."

Powell was not happy with how Walsh characterized his statements. Prior to the release of the report, he submitted a letter to the court overseeing Walsh and blasted Walsh for having "seen fit to impugn my honor." Powell maintained there were no discrepancies between his 1987 testimony and his 1992 affidavit. This is how he explained it:

"I was asked by congressional staff in 1987 whether Mr. Weinberger kept any records at all of his daily activities. I replied truthfully that he took notes, but did not have a diary -- a permanent record summarizing important events. My 1992 affidavit, on the other hand, focused in depth on the notes I said he took and my understanding that the notes were personal ... I described his notes [in 1992] as a diary to convey the idea that they were private and personal, as opposed to an official record."

Can you make sense of that? Actually, in 1987, Powell had not forthrightly told the investigators that Weinberger maintained notes. Powell only said that "whatever notes [Weinberger] kept, I don't know how he uses them or what he does with them." The clear implication of Powell's 1987 answers was that Powell had no idea whether Weinberger maintained a written record of his daily dealings. Yet in 1992, he was full of details about the Weinberger notes, and he even referred to them as a "diary."

When Walsh's report was released, no one in the media appeared to have taken notice of his criticism of Powell. But in 1995, when Powell was flirting with the idea of running for president, I flipped through Walsh's report, found the passage on Powell, and thought I had a hot-shit story: the all-American patriot -- a man described by historian Stephen Ambrose as "defined by the word 'trust'" -- caught in a lie. When I called Powell's spokesman for a response, I received an answer so convoluted I could not put it in the article. (People would think, I explained to an editor, that it was a typographical mistake.)

When the article appeared, I expected other media to pick up the story. No one called, except a friend who was an investigative reporter at a TV network. He asked for the supporting material and received an OK from his superiors to pursue the story. He filmed a segment, and it was scheduled to air. Then the story was killed from above. A message was indirectly conveyed to the reporter: this was not serious enough a charge to justify taking a swing at Powell and causing him to be angry with the network. After all, the network might want to book him in the future.

In the time since, Powell's contradictory statements have received cursory mention in a few press profiles. But his part in the scandal escaped thorough media scrutiny. Imagine the media response if an independent counsel accused Hillary Clinton of making misleading statements to protect a friend under investigation.

It does not seem likely Powell will sign up as Bush's sidekick. He has shown no interest in the job. And why should a fellow of his stature -- with his brand name power -- tie his future to the Bush campaign and its iffy prospects? If Powell does desire the presidency, he could credibly enter the next presidential race without having served as No. 2 to Bush. He also could waltz easily into the secretary of state or defense slots in a Bush administration. Should Powell decide to enter politics or seek a Cabinet post, it's doubtful his bit part in the Iran-Contra affair will get in the way. But will his free ride with the media continue?

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