Washington Wrap

Dotty Lynch, Beth Lester, Clothilde Ewing, Nathaniel Franks, Cody Kucharczyk and Dan Furman of the CBS News Political Unit have the latest from the nation's capital.

Tuesday's Headlines

* Berger and Halliburton Investigated

* Convention Protest Watch

* Bush To Stay Out of Spotlight During Dem Convention

* Kerry's Money

* Nader Accepts Signatures

* Trail Bytes: Kerry in Nantucket While Edwards Lays Low in Washington

I'll give you a Berger and Raise you a Halliburton: Just as the Bush-Cheney folks were delighting in reports that a criminal investigation was being conducted on whether Clinton NSC adviser and now Kerry adviser Sandy Berger illegally took documents from the National Archives, another story popped up in the Houston Chronicle. The newspaper reported that a criminal investigation had also been opened on whether a Halliburton subsidiary had violated U.S. trade restrictions against Iran. The Democratic Media Fund sent around a release stating that Halliburton opened an office in Tehran six months before Vice President Cheney left to join the GOP ticket.

The Wall Street Journal reported that the energy-services company said it received a federal grand-jury subpoena seeking documents related to the case. Since 1995, U.S. companies and individuals were banned from directly conducting business with Iran, but independent foreign subsidiaries of U.S. companies are still allowed to have business relationships. Halliburton's Cayman Island unit is supposedly the independent subsidiary of the company dealing with the company's Iran contracts.

After a CBS News "60 Minutes" report questioning whether any business at all was being conducted there and disclosures that Iran assisted some of the Sept. 11 hijackers, the probe was referred to the Justice Department. Halliburton said its subsidiary didn't violate sanctions because it is based in the Cayman Islands and wasn't overseen by U.S.-based managers. "This [the subpoena] is not a condemnation of the company, but a method of further studying the facts," said spokeswoman Wendy Hall in a statement.

On the Democratic criminal probe side, former National Security Adviser Sandy Berger may be in trouble for removing several copies of an after-action report assessing the effectiveness for the Clinton administration's counter terrorism efforts during the run up to the 2000 millennium celebrations from the National Archives. According to the Wall Street Journal, this happened while Berger was preparing for the 9/11 commission's investigation.

Lanny Breuer, Berger's attorney, said that Berger had also intentionally removed handwritten notes that he had taken during three separate visits to the archives last fall to review classified documents. Breuer admits that this was a "technical violation." Berger said, "I deeply regret the sloppiness involved, but had no intention of withholding documents from the commission." The documents involved were highly critical of the Clinton counter terrorism efforts for the celebrations. The Justice Department said that it had not made a decision on whether to charge Mr. Berger.

Convention Protest Watch: In a big turnaround Monday, Boston's Joint Labor Management Committee, the committee charged with handling the two-year long contract dispute between Boston and Boston police officers, voted to expedite arbitration. On Friday, Paul J. Birks, the chairman of the three man committee, vowed to obstruct a vote, telling reporters, "There's going to be no vote taken of any kind," reports the Boston Globe. On Monday, after an hourlong closed-door meeting, Birks himself moved for a vote on expedited arbitration. Birks said that the decision was his own and did not come because of outside pressure, although he would not elaborate on why he changed his mind, instead saying, "It is in everybody's best interest that the focus over the next 10 days be on ensuring a seamless and safe convention."

The Democratic convention organizers and hosts, including Boston's mayor, Thomas Menino, had faced the possibility of police picket lines at convention events. However, the arbitrator's settlement is binding; regardless of any legal challenges from the police union, a contract will be in place by the deadline Thursday, presumably preempting any picket lines. As Menino said, "If there's a contract in place, why would they picket?"

The union's president, Thomas J. Nee, called the vote "a political bag job" and promised that "we're absolutely going to protest, now more than ever...And I'm telling you, they're going to be worse now than they were [going to be] before." Nee added that the union would reconsider the separate peace that they struck with John Kerry last month in which the union agreed not to picket the Fleet Center in exchange for Kerry not crossing a police picket line to deliver a speech at the U.S. Conference of Mayors in late June. The AFL-CIO's Massachusetts President, Robert Haynes, joined Nee in condemning the vote. Said Haynes, "This is a political injustice with a predetermined outcome to rescue the mayor from embarrassment…this is a sad day for fairness and justice."

Some delegation and party chairmen, including Dennis White of Ohio and Art Torres of California, said Monday, "they will stand by their decision [from last week] to boycott their delegation parties, regardless of whether the contract is settled before the convention," reports the Globe.

The Republicans were also dealt a setback Monday in regard to their convention. Manhattan Federal Court Judge Robert Sweet ruled that "cops cannot unreasonably restrict access to demonstrations or search bags unless there is 'a specific threat to public safety,' " reports the New York Post. In addition, Sweet said that if the NYPD wants to conduct mass searches of protesters' bags, they must justify how such a search would "reduce a threat to public safety," and he also told the NYPD that they can close down streets and sidewalks at demonstrations only after making "reasonable efforts" to tell demonstrators how to get to other demonstration sites.

Donna Lieberman, executive director of the New York Civil Liberties Union, the group which sought out the judicial finding, said, "With this victory, the NYCLU and other groups ought to be able to hold lawful demonstrations at the Republican National Convention and elsewhere without fear of overly restrictive police practice." In response to the ruling, NYPD Deputy Commissioner Paul Browne said, "The decision does not cause the Police Department to change any plans or tactics for safeguarding the Republican National Convention or the demonstrations associated with it."

Bush to Take a Break: President Bush is squeezing some last-minute campaigning in on Tuesday, before the political spotlight turns to Boston and the man trying to unseat him. In a campaign first, Bush will travel with both of his twin daughters, Barbara and Jenna, who will make their first joint appearance with their father out on the trail. Bush will campaign in battleground states Iowa and Missouri, where he is scheduled to speak at an "Ask President Bush" event in Cedar Rapids, Iowa, before heading to a rally at the in the St. Louis suburb of St. Charles on his 19th presidential visit to Missouri, reports the AP.

On Thursday, Bush is scheduled to speak about homeland security in Illinois before attending a GOP fund-raiser.

Come Friday though, aides say the president will stay out of sight at his ranch in Crawford until the Democratic convention concludes July 29, to catch a break before the campaign's home stretch. But Republicans are loath to give Democrats a free pass. Thus the campaign will send a contingent to Boston to react to the likely Bush-bashing, and Vice President Dick Cheney will keep up the attacks on John Kerry during a West Coast swing, reports the AP.

Bush is expected to hit the trail again on July 30th.

Kerry's Pot O' Gold: After raising an unprecedented amount for any presidential challenger in the primary season, John Kerry is set to accept federal matching funds for the general election. Kerry will disburse his leftover primary funds to various Democratic committees and also use the monies to repay himself for the $6.4 million loan he made to his campaign in December 2003, reports the Boston Globe.

In the general election, which begins after Kerry accepts his party's nomination July 29th, "a candidate can receive $75 million, which is accumulated through the $3 check-off on federal tax returns, only if he ceases fund-raising for himself and limits his fall spending to that total. Under the same rules, a candidate is allowed to disperse any money remaining in his privately funded campaign account after he pays off any final bills." So Kerry will use his primary fundraising largesse to give millions to the DNC, state Democratic committees, and maybe some Congressional committees. "The aim," reports the Globe, "would be to have the committees, especially those in battleground states, air television ads on Kerry's behalf this fall, and finance get-out-the-vote operations on Election Day."

Kerry's decision will help mitigate the gap between himself and the Bush-Cheney campaign. Both candidates will have $75 million in federal matching funds, but since Bush will accept the nomination in September, Kerry's money has to stretch 13 weeks and Bush's only eight. By giving his millions to outside parties, Kerry hopes they will make up for the five-week shortfall.

In other money news, "The Democratic Party, with $63 million in the bank, plans to launch a massive ad campaign against President Bush as John Kerry crosses the United States by bus, train and boat after next week's nominating convention." AP reports.

As Kerry leaves the Convention, and his campaign conserves cash in August, the DNC will go on the air with a major "ad blitz…saving millions of dollars in a tight general election budget." $18 million can be spent on ads in coordination with the Kerry campaign.

Beyond that $18 million, the DNC is also planning to begin an independent expenditure ad campaign directly after the Convention, with a budget that could be in the "tens of millions." Federal campaign finance laws mandate that "those spots cannot be coordinated with the Kerry team, but they can be negative, a contrast to Kerry's mostly positive ad campaign strategy." So even as Kerry's campaign goes off the air, look for other Democratic voices to fill the void.

Nader Accepts Signatures: In a move to ensure he will have a spot on the ballot in Michigan this November, presidential candidate Ralph Nader accepted 43,000 signatures submitted by the Michigan Republican Party on Monday. Nader's decision to accept the signatures will allow him to appear on the ballot as an independent, reports the Associated Press.

The Nader campaign turned in 5,400 signatures falling drastically short of the 30,000 required. Nader spokesperson Kevin Zeese acknowledged that the campaign stopped collection of the signatures a month ago, when Nader was endorsed by the Reform Party.

Nader anticipated being placed on the ballot as the Reform Party candidate, but tensions within the Reform Party in Michigan have led to several factions within the party claiming to have the power to nominate their candidate. One such group will nominate its candidate this Saturday at its state convention; however, another group has already nominated Nader for the spot on the ballot. Terri Lynn Land, Secretary of State, has refused to validate this nomination until the Reform Party in Michigan resolves this dispute of power.

Meanwhile, officials for the Democratic Party are considering filing a complaint with federal elections officials, according to the Detroit Free Press. Democrats allege that in their attempt to get Nader on the ballot, the time Republican staffers spent collecting signatures exceeds the $5,000 maximum campaign contribution state parties are allowed to give to candidates.

Kerry-Edwards: Both halves of the Democratic ticket are "down today" but here's how they spent Monday:

Trail Bytes from CBS News' Allison Davis with the Kerry campaign:

Nantucket may be getting used to the Kerry days of NO PUBLIC EVENTS, but even so, they can be jarring at times.

"It's OK, we're Democrats," intoned two joggers after 8:00 PM Monday when the quiet streets of the seaside community were suddenly jolted. Five black SUVs came whipping around a corner just before 8:30 PM. John Kerry and Teresa Heinz Kerry were a bit late for their 8 PM reservation at the American Seasons Restaurant.

The joggers were forced to run in place as a female Secret Service agent responded "I don't care what you are..."

So the men waited for the Kerry motorcade to settle in and drop the Kerry couple off for dinner. The senator had spent the day at the Heinz estate on the island, working on his convention speech ... thought it was Teresa who looked exhausted and said it was her first time out all day and she planned to "drink it away."

Trail Byte from CBS News'Bonney Kapp with the Edwards campaign

It was inauguration day --- for the official John Edwards jet on Monday.

Not exactly a subtle mode of transportation, the 727 is covered in decals such as "Kerry/Edwards '04," "A Stronger America," "The Real Deal," and "JohnKerry.com." The effect is complete with a rippling American flag on the jet's tail.

Of the 59 seats, only 37 were taken during the first flight – 35 minutes from Raleigh-Durham, NC to Washington, D.C. It was fairly bumpy at times—and passengers were not permitted to leave their seats (mostly due to FAA restrictions outside of DC). But don't read too much into this…it was a smooth landing.

Earlier, Edwards was all smiles when he attended a fundraiser in his hometown of Raleigh. "It's so good to be back home," he confided to the crowd of some 300 fellow Tarheels. In one day, the senator raised "over a million dollars" according to press secretary Mark Kornblau.

Before the Kerry/Edwards Victory '04 Reception, Edwards attended two meet and greet events, each with about 30-35 supporters (and no press), who helped make it another million dollar day for Kerry's running mate.

Edwards spent about as much time shaking hands with donors as he did speaking, which wasn't long. After the reception, the motorcade plowed through heavy Raleigh-Durham traffic to go to the home of Durham mayor Bill Bell and his wife, Judith, for another "Front Porch Visit."

Edwards spends Tuesday in Washington working on his acceptance speech for the Democratic Convention. On Wednesday he travels to NYC, where he will hold two fundraisers. Daughter Cate along with Kerry's stepson, Chris Heinz, will accompany him at the second reception to be held at a Chelsea bar.

Quote of the Day: "I think every American ought to see it. As far as I know, there are no factual errors in it, but it may connect the dots a little too close -- about the Saudis and the Bushes, and the terror and all. I'd like to see it again before making a judgment about whether I think it's totally fair." ---former President Bill Clinton on "Fahrenheit 9/11." (Rolling Stone)