XXXXX DRUDGE REPORT EXCLUSIVE XXXXX TUESDAY, MAY 11, 1999 22:59:49 UTC XXXXX WILLEY SUSPECTS STATE DEPT DEPUTY'S BROTHER-IN-LAW PART OF INTIMIDATION CAMPAIGN **Exclusive Details** Earlier this year, ABC NEWS hotshot reporter Jackie Judd showed presidential accuser Kathleen Willey a picture of a man. Judd was developing a story about an incident she was first to reveal about the morning Willey was spooked by a stranger -- a stranger that knew too many details about her private life. A stranger that approached her just two days before she was to tell a grand jury about what Bill Clinton did to her in the White House. "Is this the man who approached you that morning?" Judd asked Willey. The DRUDGE REPORT can now reveal that Willey was shown a picture of Cody Shearer -- the brother-in-law of Deputy Secretary of State Strobe Talbott and long-time friend of President Bill Clinton! Judd has not filed a report on what Willey told her that day, but Willey did open up to CNBC's Chris Matthews in an interview that aired on Tuesday night. Willey unloaded details of her run-in with a man: "I was walking with my three dogs, and I saw this man coming toward me... He called me by name, 'Kathleen, did you ever find your cat?' he asked. 'No, I have not, and we really miss him,' I told him. 'Did you ever get those tires fixed on your car?' he asked. The hair on my neck started to stand on end... He asked me about my children by name." Willey told Matthews that she can ID the man as being one of the president's associates. The twin brother of Deputy Secretary of State Strobe Talbott's wife, Brooke Shearer, has been at the center of controversy since Bill Clinton has been president -- but he has remained mostly out of the headlines. Cody Shearer, a self-styled "conflict mediator", is alleged to have had cozy relations with Investigative Group International, using their office databases and hob-nobbing with operatives, according to reports in VANITY FAIR and the NEW YORK POST last summer. In 1992, Shearer is reported to have encouraged Terry Lenzner, head of IGI, to investigate an alleged affair between then-President George Bush and the State Department's Jennifer Fitzgerald, and allegations of marijuana use by Dan Quayle. After he was approached by Cody Shearer, long time Clinton ally Terry Lenzner offered to help an Oklahoma Indian tribe, rejected for a gambling license, investigate the private life of Rep. Don Nickles [R-OK] and his family. Shearer's primary White House chum is Sidney Blumenthal, according to reports. During a press conference earlier this year, HUSTLER magazine owner Larry Flynt told the DRUDGE REPORT that he considered Shearer a "very good friend." [Flynt had confided in friends that Talbott and Shearer were helping sift through information during his investigation into the private lives of congressmen and other elected officials. A claim strongly denied.] Most recently, Shearer was accused of engaging in secret peace negotiations with representatives of Bosnian Serb leader Radovan Karadzic, an indicted war crimes suspect. Cody Shearer could not be reached for comment. Willey is set to appear on CNN's LARRY KING LIVE later this week. X X X X X CHINA: YOU'LL PAY US BACK WITH POLICY CHANGES China expects the U.S. to make significant concessions on sensitive military, trade and diplomatic issues as payback for last weekend's NATO bombing of China's embassy in Belgrade, the FINANCIAL TIMES is reporting on Wednesday. China is seeking conciliatory measures from the U.S., including dismissing allegations that a Chinese spy passed U.S. nuclear secrets to China. FT reporters James Harding and Steven Fidler quote a senior foreign policy advisor to Chinese President Jiang Zemin: "It is now up to the U.S... to take the initiative to get the relationship back to normal." The paper outlines the said conditions. Just as... INVESTIGATORS SUSPECT CHINA MOVED TEN OF MILLIONS OF DOLLARS THROUGH U.S. BANK TO PAY FOR SPYING OPERATIONS The NY TIMES breaks with a fresh Page One of its own on Wednesday: Tens of millions of dollars have flowed from China into a small American bank -- and U.S. investigators suspect that it to pay for spying operations! MORE... The TIMES' Jeff Gerth keeps up the pace -- a pace he alone has set, sans Bill Gertz at the WASH TIMES -- with an exclusive built on confidential Government documents and interviews. Late in the spring of 1996, federal bank examiners discovered that the central bank of China moved more than $92 million into the United States, depositing it in a maze of accounts controlled by a fast-rising Chinese executive at a small California bank, Gerth and TIMES Tim Golden reveal. "The purpose of the money remains a mystery. Some federal officials now suspect that it might have been intended to pay for Chinese intelligence operations. Others believe that it could have been amassed for political contributions or to purchase sensitive military technology." Developing hot. --------------------------------------------------------- Filed by Matt Drudge in Key Largo, Florida Reports are moved when circumstances warrant http://www.drudgereport.com for steaks and breaks (c)DRUDGE REPORT 1999 Not for reproduction without permission of the author
