Deaver Under Fire, Investigation Requested

WASHINGTON--The government's top ethics officer asked the Justice Department yesterday to investigate whether Michael K. Deaver, a former White House aide who operates a lobbying business, violated conflict-of-interest laws.

David Martin, head of the Office of Government Ethics, referred the case to the Justice Department on the same day that President Reagan said he thinks it is "ridiculous" to appoint a special prosecutor to investigate Deaver.

Martin's letter to Attorney General Edwin Meese III activates the procedure for establishing a special prosecutor to look into Deaver's dealings.

The Justice Department has 90 days to conduct a preliminary inquiry into the case and decide whether to refer it to a three-judge panel. That court would make the final decision on whether to name an independent counsel.

Martin refused to comment on what caused him to write Attorney General Edwin Meese asking for Justice Department's involvement. "I made an analysis of the facts and the situation and provided that for the attorney general's consideration," he said.

John Russell, a Justice Department spokesman, said Martin's letter will be given to lawyers in the public integrity section who will study the Deaver file before Meese decides whether a preliminary investigation is warranted.

He said it was "too early to say" if Meese, who worked closely with Deaver at the White House, would disqualify himself from the case.

On Thursday, five democrats on the Senate Judiciary Committee, including Senate Minority leader Robert C. Byrd (D-Va.), called on Meese to consider appointing an independent counsel to investigate Deaver's lobbying, an aide to Sen. Joseph Biden (D-Del.) said Thursday night.

In a letter, the senators argue that there is sufficient evidence of possible conflict of interest to warrant a probe by a special prosecutor, said Peter F. Smith, Biden's press secretary.

He said the other signers are Sen. Paul Simon (D-III.), Sen. Howard Metzenbaum (D-Ohio) and Sen. Patrick Leahy (D-Vt.), Biden, who is the ranking Democrat on the committee, initiated the letter to Meese, Smith said.

Under the Ethics of Government Act, Meese must respond within 30 days and tell the senators whether he has asked the court to appoint an independent counsel, or, if not, why Smith said.

Meanwhile, in the House, Rep. John Dingell (D-Mich.) chairman of the Energy and Commerce Committee, has decided to begin subcommittee hearings into Deaver's activities, according to an aide.

Michael Barrett, chief counsel of the Energy and Commerce oversight and investigations subcommittee, said Thursday night that Deaver's attorneys have been asked to supply dates on which their client can testify. Dingell is prepared to ask the subcommittee to subpoena Deaver should he refuse, Barrett said.

The Washington Post, quoting a Canadian source, said in yesterday's editions that Deaver was still working in the White House when he first talked with Canadian government officials about signing up Canada as a client for the Washington lobbying firm he planned to establish.

After Deaver left the White House, the Canadian government paid him $105,000 to advise it on a number of issues, including acid rain.

Federal law prohibits former top officials from lobbying for two years on an issue they were involved with during their tenure in government Deaver has denied any wrongdoing.

In another development Thursday, a presidential spokesman confirmed that Deaver, a former White House aide and now lobbyist for several foreign countries, daily gets a copy of President Reagan's detailed schedule.