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DATE=2/8/2000 TYPE=CORRESPONDENT REPORT TITLE=DEUTCH LOSES CLEARANCE (L-ONLY) NUMBER=2-258964 BYLINE=JIM RANDLE DATELINE=PENTAGON CONTENT= VOICED AT: INTRO: The chairman of the Senate Committee that watches over U-S intelligence activities says there may have been favoritism and a cover-up in the case of former C-I-A Director John Deutch. The one-time spymaster was barred from seeing classified information after allegations he failed to properly protect some of Washington's most closely-guarded secrets. V-O-A's Jim Randle reports from the Pentagon. TEXT: Senate Intelligence Committee Chairman Richard Shelby of Alabama says his panel wants to hear from former C-I-A Director John Deutch, as well as the man who currently heads the U-S Intelligence community, George Tenet, the Justice Department, and the Federal Bureau of Investigation. Senator Shelby says he may call hearings to look into the case. Tuesday, C-I-A legal officials briefed the committee on the Deutch matter in a secret session, but left Senator Shelby with a lot of unanswered questions. /// SHELBY ACT /// I think that will be one of the real central questions. Was there a cover up? Was there potential, well not potential - was there preferential treatment? We are getting into this; we are not satisfied at this moment with the explanations. /// END ACT /// Senator Shelby spoke to reporters about the time Mr. Deutch's attorney contacted top Pentagon officials to request that his last security clearances be `discontinued.' As a former top official at the Pentagon and the C-I- A, Mr. Deutch had been allowed continued access to U-S secrets for his work advising defense contractors and in university research. Last August he lost the high level, broad access to secret information after allegations he used an unguarded computer in his home to work on extremely sensitive materials. The computer was also used to access Internet web sites and for e-mail, which experts say might have might have allowed skilled adversaries to steal the sensitive information stored in the machine. In the past few days, Pentagon officials said Mr. Deutch still had access to some secrets about military equipment. Monday, Defense Secretary William Cohen said he was considering revoking Mr. Deutch's last access to government secrets. But Mr. Deutch's voluntary action made it unnecessary to continue that process. Meantime, top C-I-A officials hinted that the scandal might spread beyond Mr. Deutch. In a letter to the President's Foreign Intelligence Advisory board, agency officials called the matter an `unprecedented' case involving a former Director of Intelligence and `a number of former and current senior Agency officials.' (Signed). NEB/jr/gm 08-Feb-2000 19:09 PM EDT (09-Feb-2000 0009 UTC) NNNN Source: Voice of America .