The MacNeil/Lehrer NewsHour

Intro

ROBERT MacNEIL: Good evening. These are the day's top headlines. Labor Secretary Donovan resigned after he was ordered to stand trial on fraud and larceny charges. Attorney General Meese said the U.S. is moderately encouraged now by Mexican efforts to combat drug trafficking. Secretary of State Shultz said both Moscow and Washington should take advantage of this moment of opportunity to improve relations. Jim Lehrer is away tonight; Judy Woodruff is in Washington. Judy?

JUDY WOODRUFF: After the news summary, we have a newsmaker interview and a major focus section on the NewsHour tonight. First, an extended interview with Canada's prime minister, Brian Mulroney, the day after he met the new leader of the Soviet Union. Then we focus on the resignation of Labor Secretary Donovan. We hear about the criminal charges that led to today's move and the political fallout it's likely to have. Finally, we have a look at some very talented robots.News Summary

MacNEIL: Labor Secretary Raymond Donovan resigned today after a court in New York ordered him to stand trial on charges of fraud and larceny. President Reagan said he accepted the resignation with deep regret and declared that Donovan is entitled to the assumption that he is innocent. The President also said he agreed with Donovan that the former secretary will need to devote all his time to his defense. Donovan, who has been on leave from the Labor Department since he was indicted last October, was reported to have decided he could no longer ask the President to show patience in the matter. In a statement issued by his lawyers Donovan said he had not violated any law and was confident that a jury will acquit him. He is the first Cabinet officer ever indicted while in office. Donovan and nine other men are charged with misrepresenting payments to a subcontractor on a New York City subway construction project in 1979 and '80 while he was an official of a New Jersey construction company. The charges were brought by the district attorney of Bronx County, Mario Merola, a Democrat. Here is what he had to say about the court's decision to make Donovan face trial.

MARIO MEROLA, Bronx District Attorney: We're happy that the judge took the time to read in excess of two feet of information -- and I'm not talking about quantity, I'm talking about quality -- in addition to the tapes that we presented to the court. And the court took its time, heard oral arguments on it; it was very, very deliberate. There's a 27-page decision which in effect says that there was larceny here to the tune of $7.4 million and that we have pursued this course and somebody's going to answer for it.

MacNEIL: The White House said nothing about a successor to Donovan. Lane Kirkland, president of the AFL-CIO, called on the President to name a secretary who would vigorously enforce labor regulations. We'll have a focus segment on the legal and political angles of the Donovan story later in the program. Judy?

WOODRUFF: The new U.S. attorney general, Edwin Meese, said today that he is somewhat encouraged by the cooperation he said the U.S. is getting from the Mexican government in the fight against drug trafficking. At his first news conference in this job Meese stressed that the U.S. will continue its efforts and added that American officials will tone down their criticism of the Mexicans for the way they have handled the recent murder of a U.S. drug enforcement agent. Secretary of State Shultz and others have suggested unhappiness over the issue, which has caused strains recently in the U.S.-Mexico relationship.

EDWIN MEESE, Attorney General: We are not, as some have suggested, withdrawing in any way our efforts against the traffickers in that country, but rather are increasing in cooperation with the country of Mexico our efforts to combat narcotic trafficking and exports from that country. We are somewhat encouraged by the efforts that have been made in the past 24 to 48 hours and the constructive results in terms of the arrest of suspects in the matter relating to the death of the DEA special agent, Mr. Camarena. We are encouraging an all-out effort by the Mexican authorities. We've indicated we'll want to cooperate with them and at this stage I would say we are moderately encouraged by the cooperation we're receiving and we look forward to that continuing.

WOODRUFF: At the same news conference Meese commented that court-ordered school busing has been only marginally effective. The attorney general said he did not have any particular school systems in mind in making that observation, but he stressed that the Justice Department would continue to assess school desegregation court orders. Late last year Justice filed a brief supporting the Norfolk, Virginia, school board in its effort to end court-ordered school busing.

MacNEIL: Secretary of State Shultz reported to President Reagan today on his meeting with Mikhail Gorbachev, the new secretary general of the Soviet Communist Party. Afterward, Shultz told a news conference he found Gorbachev businesslike, but cautioned against assuming that the U.S. can do business with him.

GEORGE SHULTZ, Secretary of State: It's one thing to be businesslike, but then we have to find the substance of the issues and see where we can go on them. And what I have said with the President's blessing here is that he is prepared to work at it in a constructive vein. So we have two businesslike people. The President is prepared to work at it. Whether anything can come of it remains to be seen, but I think there is an important responsibility on both sides to make every effort to take advantage of this moment of opportunity.

MacNEIL: And the American position in the bargaining with the Soviets was strengthened a bit today when Prime Minister Wilfried Martens said Belgium will deploy 16 cruise missiles this month at an air base near Florennes. Here's a report from Michael Driscoll of Visnews.

MICHAEL DRISCOLL, Visnews [voice-over]: For the last five years arguments have raged about the future of the Belgian countryside around Florennes. NATO strategy calls for the installation of U.S. nuclear weapons, the Western alliance's response to Soviet deployment of SS-20 missiles in Eastern Europe. The first NATO missiles should already be in place at Florennes, but they aren't. The issue has divided Belgians and left the coalition government led by Wilfried Martens floundering, but now at last that government has made a firm decision and it has come down in favor of deploying the NATO weapons. Prime Minister Martens told a special parliamentary session that the decision was unanimous among cabinet members. What seems to have brought the Belgians around is a discussion in Moscow between Foreign Minister Leo Tindemans and his Soviet counterpart, Andrei Gromyko. Tindeman's offered to further postpone deployment if the USSR would drop the demand that arms talks should be linked to President Reagan's Star Wars research. Gromyko said, "No deal," and Tindeman returned home empty-handed. That appears to have won the Belgians over to Washington's line, that you can only do business with the Soviets when you deal from a position of strength.

MacNEIL: The question of deploying American weapons in Canada is also a sensitive issue, and we'll be talking to Canadian Prime Minister Brian Mulroney about that and other issues in a newsmaker interview later in the program.

WOODRUFF: The White House let it be known today that it is ready to play hardball with Republican members of Congress who don't go along with the President on the budget and other issues. Spokesman Larry Speakes says the White House will, in his words, "help our friends first when it comes to campaigning for members up for re-election next year." It was a clear warning, especially to the 22 Republican members of the Senate who have to run again in 1986, to think twice before they vote against the President. And it drew immediate protests from some of those same Republicans, with Iowa Senator Charles Grassley calling it "strong-arm tactics" and North Dakota's Mark Andrews saying, "The voters didn't elect me to be a rubber stamp."

MacNEIL: There was mixed economic news today. Wholesale prices fell a tenth of a percent in February because lower prices for energy, meat, fish and poultry offset increases in the costs of fruit and vegetables. The Federal Reserve Board reported that U.S. industrial production fell half a percent, the first decline in four months. Robert Ortner, the Commerce Department's chief economist, said the downturn illustrates the damage done by strong imports.

In Ohio, Governor Richard Celeste invoked emergency powers and closed 16 savings and loan institutions to stop a run by panicked depositors. The S&Ls closed were insured by a state-guaranteed fund. Closure doesn't affect about 125 other state-chartered S&Ls insured federally. Scores of people camped outside savings and loan branches in Cincinnati overnight, panicked by the closing of one savings bank last week.

And in Milan, Italy, Sicilian financier Michele Sindona, who was extradited from the United States to stand trial, was convicted of bank fraud and sent to jail for 15 years.

WOODRUFF: General William Westmoreland had some chastening words for the nation's news media today. In a speech to the National Press Club in Washington the general, who dropped his $120-million libel suit against CBS last month, cited the need for some kind of news council, where people who have complaints against the press can have their grievances aired without having to take them to court.

Gen. WILLIAM WESTMORELAND, U.S. Army (Ret.): If the media itself does not set up and adhere to proper standards, there will be increasing pressure for outside interference. The media, like every other institution, is fallible. It makes mistakes, sometimes through overweening zeal, and people are injured as a result. It's very important as far as your profession is concerned, which is central to our form of government, that you clean up your act, that you proceed to set up a mechanism in order to police yourselves, a mechanism that will ensure a very high standard of ethics in your profession of journalism.

WOODRUFF: For his own part, Westmoreland said he felt the statement CBS made when the suit was dropped had cleared his name. On the other side of the coin, a press group charges that the Reagan administration has taken some 51 actions aimed at restricting public and media access to government information and intruding on editorial freedom since Mr. Reagan came into office. The Reporters Committee for Freedom of the Press accused the administration through its policies of causing the most significant media access restrictions on government information since the end of voluntary censorship in World War II. Among other moves, the committee cited a Defense Department order in 1981 requiring Pentagon employees with access to classified information to take lie-detector tests if they were suspected of news leaks.

MacNEIL: In Lebanon the rift between two Christian militia factions grew wider today. Rebels opposed to President Amin Gemayel's pro-Syrian policy took control of his supporters' last stronghold in east Beirut and the Lebanese army began moving into position to separate the two militias. There was a brief firefight when the rebels moved into the Phalangists' strong point near the port of Beirut. Two people were reported killed and six wounded.

In Teheran a terrorist with a bomb strapped to his waist blew himself up in a mosque where Ali Khamenei, the president of Iran, was preaching a sermon. The bomber and five others were killed but the president was not hurt.

In Baghdad, Iraq said its troops inflicted heavy casualties on Iranian troops attacking along the southern front. Brian Mulroney: Canada's View

MacNEIL: First tonight we have a newsmaker interview with the prime minister of Canada, Brian Mulroney. On Sunday the prime minister and President Reagan meet in Quebec City for two days of talks about trade, the environment, defense issues and probably Mulroney's impressions of the new Soviet leader, Mikhail Gorbachev. Mulroney returned yesterday from Moscow where he met Gorbachev after the funeral of Konstantin Chernenko. This is the third meeting with the President since Mulroney's Progressive Conservative Party came to power last September. For a preview of what Canadian papers are calling the St. Patrick's Day or shamrock summit, the prime minister joins us this evening from the Canadian Parliament buildings in Ottawa.

Good evening, Mr. Prime Minister. Welcome.

BRIAN MULRONEY, Prime Minister of Canada: Good evening.

MacNEIL: The schedule of your talks with the President leaves, as I see it, only two hours of private talks; all the agreements you two are to sign have been worked out. What business do you and the President really have together?

Prime Min. MULRONEY: Well, I think that's probably an error, Mr. MacNeil. In point of fact, we'll be spending about, between 10 and 11 hours together either in formal talks or in tete-a-tetes or in conversation. And I think that gives us ample time to resolve some of the common problems we have. You know, Canada is by far the biggest trading partner of the United States of America, bigger than anyone else, Japan or West Germany. We trade in excess of $100 billion a year. We are the United States' closest friend, neighbor and ally, as you are ours. And so we have a lot in common, and that commonality produces problems from time to time, and we have to deal with some of the major ones.

MacNEIL: Haven't you or haven't your officials previously worked out all the areas that you're going to discuss, and aren't the agreements cut and dried already, signed --

Prime Min. MULRONEY: Not all --

MacNEIL: Sealed if not signed yet?

Prime Min. MULRONEY: Well, a lot of the work has been done by President Reagan and myself and Secretary Shultz, who is a great friend of Canada, and others, the White House and on my staff. But President Reagan and I will be, on Sunday, for example, doing the fine-tuning of a number of instruments of agreement, and we hope to be successful in that regard.

MacNEIL: What is the importance of the north warnings system agreement that you are going to sign?

Prime Min. MULRONEY: Well, it's an important item in our common defense of the North American continent. The system, the distant early warning system that we have in place now in Canada's north is full of holes. It is unacceptable as an instrument of defense in the 1980s and '90s and it must be refurbished, and that is what we're proposing to do on a cost-shared basis, with Canada for the first time retaining complete control and sovereignty over anything placed on our territory. That's a very important component of what we're trying to do, and may I say that kind of situation met with favor by President Reagan, who is very sensitive to Canadian concerns and to legitimate Canadian nationalism. We're very concerned about preserving at all times the integrity and the independence of this nation, and we find that our interlocutor in Washington is friendly and sensitive and helpful to that cause.

MacNEIL: There was quite a flurry in your House of Commons today over a related issue, whether the agreements with the United States about the contingency stationing of American planes during an emergency still require prior American approval. Is that the case? Have there been any changes in those agreements?

Prime Min. MULRONEY: Well, we have flurries in the House of Commons every day, Mr. MacNeil. I'm in there for question period and I also have the scars to prove it. Today, however, it was a case of some opposition members trying to, I thought, unfairly connected to unconnectable items. In point of fact, the cabinet and the government of Canada retains complete sovereignty in the decision-making process in regard to these matters. And we are not troubled by some of the concerns raised by the opposition.

MacNEIL: Are you interested in joining the American effort that Mr. Reagan is pushing to develop a space defense system, the thing that's popularly known here as Star Wars? Is your government interested in joining that effort?

Prime Min. MULRONEY: No. We have, as an ally, been requested for our views and we have conveyed to the United States and to our other NATO partners our support of the American proposal in regard to the research concept. That's where it is now. And we have supported that. But our intention -- we are not a superpower. We do not have a nuclear dimension to our policy. Canada does not have nuclear weapons on its territory, nor shall it, life the length of this government. But we are a very -- we are very involved in NATO and we are very supportive of the alliance, as we are of our relationship with the United States. And we felt it appropriate and prudent to support the United States of America at this time as it began its negotiations in Geneva, and we conveyed that notion of support both to President Reagan and to our allies around the world.

MacNEIL: What do you think of the fuss between the United States and your sister Commonwealth country, New Zealand, over New Zealand's refusal to let American Navy ships into its ports without assurances they were not carrying nuclear weapons?

Prime Min. MULRONEY: Well, I respect the right of any country, including New Zealand, obviously, to make whatever decision it believes to be in its national interest. Clearly the government of New Zealand felt that that position was consistent with its own best views and I respect that. That is not our position. We, as a member of an alliance, both NORAD and NATO, are very supportive of our colleagues in that alliance. In point of fact, this government earlier this week announced, notwithstanding our bleak financial situation that we have inherited from our predecessors, that we were going to upgrade by some 1,200 men our commitment to NATO in Europe. We thought that was an important signal of solidarity to send them. I campaigned and won an election on the concept in part of making sure that there were no chinks in that armor, that Canada played its full share as a member of the alliance, as a supporter of NATO, and I also campaigned on refurbishing the relationships of trust that must exist between the prime minister of Canada and the president of the United States. And I can tell you I've done that, with the support of my colleagues, and I think Canadians approve.

MacNEIL: Let's take one area where there is a source of friction between the two countries, the question of acid rain, which Canada thinks and has often stated is largely caused by pollution from American industry in the Midwest. An American official, White House official, who was briefing the reporters here on this summit said you and the President, "will agree that this is a problem they need to consider." Would such an agreement satisfy you?

Prime Min. MULRONEY: No, I hope that we'll be able to do better than that. In point of fact, the United States and Canada have inflicted great savagery upon our common environment. You know, this is not something that we own. This a trust that we must pass on undiminished to our children. And I think that we've done great damage over the years to our environment. We have been thoughtless. We have been careless. And Canada, for its part, two weeks ago announced a comprehensive national effort in cooperation with the provinces and industry to clean up our own act. I'm hoping to persuade the United States of America to join us in this concept, because air floats freely over both countries and the damage is done indiscriminately.

MacNEIL: But, as you know, Mr. Reagan has said repeatedly and his administration's policy is that this is an issue that needs more study, more research.

Prime Min. MULRONEY: Well, I'm not opposed to more research, but I think you can do that and deal directly with some of the root causes of the problem as well. And so I don't believe in miracles. I haven't seen too many. But I'm hoping not for a miracle on this at Quebec City but for some important progress, some steps that we can take together that will deal with a very vexatious and difficult problem for both countries.

MacNEIL: Turning to business relations between the two countries. You told Americans on a visit to New York in December, "Canada is open for business again." You campaigned on removing restrictions your Trudeau predecessors had imposed on American investment. Will you put any limit on U.S. business coming into Canada?

Prime Min. MULRONEY: Well, we have transformed the former Foreign Investment Review Act into what we call Investment Canada, which is a much more liberal attitude towards investment, but we have retained restrictions and overviews in regards to cultural dimension of Canada and takeovers and so on. But we have a million and a half people unemployed, in excess of 11%. You're down to about 7.3%. In point of fact, Mr. MacNeil, there's not enough money inCanada to create the 1 1/2 million jobs that we would love to have for our people overnight. So we're inviting support from our allies, the United States and elsewhere around the world, and we're saying come and join us, come to Canada, invest in Canada. It's a good and an honorable place to do business again. And the government of Canada will work in concert with you. And this is what we're trying to do. It is not a question of attracting foreign investment per se. It is because it's good for trade, it's good for job creation, and it's good for Canada.

MacNEIL: Does that mean that you have no anxiety like that which used to be expressed 10 years or so ago that America already owns so much of Canadian industry and the economy that further unrestricted investment would mean just a further and further absorption of the Canadian economy by the United States? Do you no longer have none of that anxiety?

Prime Min. MULRONEY: I have anxieties, yes. I have concerns. But my greater concern at this time is for the unemployed Canadian, the head of a family who has been desperately looking for a job for some time. We've had an outflow of foreign capital because of some of the actions taken by predecessor governments which have sent hostile signals to investors around the world. And we're trying to reverse that trend because it seems to me that the moral obligation on all governments, certainly including ours, is to do our very best to attract those funds which, in concert with Canadians, will build those jobs that will cause a re-energizing of economic growth in the country. And so I suppose I'm like all Canadians on the issue, I'm ambivalent to the extent that I have concerns on the one hand, but I have a genuine desire to try and attract that capital to create jobs.

MacNEIL: Does that mean that to raise the Canadian standard of living you have to sacrifice a bit of economic independence?

Prime Min. MULRONEY: I think that's probably true of all societies, be it the United States, notwithstanding its enormous power, or Great Britain or France or Germany or us. There is a little bit of truth in that. But, on the other hand, it seems to me the moral imperative is to try and put Canadians back to work, and once we do that we create a new pool of wealth and capital which can be reinvested itself in Canadian industry and industrial infrastructure. And that's what we're trying to do.

MacNEIL: Finally, your impressions of Mr. Gorbachev. Everybody's commented on the style -- businesslike, as we just heard Secretary Shultz say. Is it all style, or is there some substance there to give the West hope of new and better relations?

Prime Min. MULRONEY: It's difficult for me to say. I had two meetings with him, one very brief and the other of approximately 45 minutes' duration, and I suppose that's not adequate time for anyone to make a value judgment, but I can tell you that I was impressed. He is competent, clearly in command. He wears that authority easily and well. I thought that he was very frank in his exchange with me, as I was with him, and I got the impression of optimism while I was there, both with foreign leaders and with, to some extent, people in the street. There is a sense of pride in the smoothness with which the transition took place. There seems to be a general belief that things can improve. I know it's a long and a rocky road. It's not going to be easy. And his selection is not going to change things overnight. But I view it positively, and I think President Reagan's response to his selection was an excellent one, and I think it's hopeful -- it's a sign of hope for all of us.

MacNEIL: Well, Prime Minister, thank you for joining us this evening.

Prime Min. MULRONEY: Thank you for having me.

MacNEIL: Judy?

WOODRUFF: Now for our regular Friday look at the way the nation's editorial cartoonists have seen the news events of the week, and this week the main event was the death of Konstantin Chernenko and the appointment of Mikhail Gorbachev to lead the Soviet Union. Poking Fun

NEWSREADER, Moscow TV, with Chernenko coffin nearby [Toles cartoon, The Buffalo News, United Press Syndicate]: The Soviet Union has experienced some difficult days. Our beloved president, Konstantin Chernenko, struggled with illness, unable to fulfill his awesome duties, but to the end he perservered, fighting the valiant fight to hold on. And it is with deepest sorrow we say, "Good bye."

KONSTANTIN CHERNENKO: Open up in here! [knock, knock, knock]

READER: Ahem! But now we must look ahead. [to coffin] Don't worry. We'll carry you, they said.

Pres. REAGAN, in bed, talking to Nancy [Wright cartoon, Miami News]: Ah, Nancy?

NANCY: Yes, Ron?

Pres. REAGAN: They say Gorbachev is young, suave, well-educated, intelligent, articulate and has a very attractive wife. A man like that is very dangerous. Don't you wish we had Star Wars? Don't you wish we could zap them right now?

NANCY: I don't know. How good-looking is she?

Pres. REAGAN, writing to Gorbachev [Toles cartoon]: "Dear Mikhail, We are most eager now to have a summit meeting with you. We have been waiting and waiting for you to get a younger, more flexible leader. Write soon, Ronald Reagan."

MIKHAIL GORBACHEV, in response letter: "Dear Mr. President, Thank you. Soviet Union feel same way. When do you get younger, more flexible leader? Mikhail Gorbachev. Oh! P.S.: George Bush too flexible."

NEWS SHOW ANCHOR [Wasserman cartoon, L.A. Times Syndicate]: And now an expert on Soviet affairs will tell us what we can expect from Mikhail Gorbachev.

EXPERT: Ah, there's general agreement that he'll either act boldly to put his personal stamp on the Kremlin or he'll move cautiously and continue the policies of his predecessors.

ANCHOR: Remember, you heard it here first!

WOODRUFF: Most of the nation's public television stations will take the next few minutes to ask for your support. The NewsHour will return right after that,and when we do we'll focus on the resignation today of Labor Secretary Donovan. We'll hear about both the criminal charges that led to his departure and the political ramifications for the White House. And we end with a look at some talented and possibly helpful robots.

[Pledge Week Intermission]

Donovans Resignation

WOODRUFF: As we reported earlier, Labor Secretary Raymond Donovan resigned today after a New York state judge ordered him to stand trial on fraud and larceny charges. President Reagan accepted the resignation but said in a statement that Donovan was entitled to be presumed innocent. The President also extended his friendship and gratitude for what he called Donovan's efforts on behalf of the administration. Donovan's legal problems stem from his work at a New Jersey construction firm where he was part owner and executive vice president before coming to Washington in 1981. Last October Donovan and nine other men were charged with overstating $7.4 million in federal payments to a minority-controlled business which worked on a subway contract for the construction company. Since then Donovan has been fighting in various courts to have the fraud and larceny charges against him dropped. Here to fill us in on the developments in the Donovan case that led to today's resignation is Marcia Kramer, a reporter who has been covering the case for the past two years for the New York Daily News. Ms. Kramer, what exactly did the judge rule today that led to all this?

MARCIA KRAMER: Well, the judge ruled that there was sufficient evidence for a jury to hear the state's case, and in his ruling the judge said that the evidence in this case, if it was proved and believed by the jury, would demonstrate a carefully contrived scheme to steal property.

WOODRUFF: What's the significance of that? What makes that any different from what has been said and what's occurred before?

Ms. KRAMER: Well, at first there was just an indictment, but the secretary of labor, Donovan, had been contending that he really wasn't a party to the indictment because he had resigned from the firm. His lawyers also argued that there was really only one document in all the evidence presented to the grand jury which in any way linked him to the scheme. But in the judge's ruling today he said there was sufficient evidence involved with all the defendants in the case to be presented to a jury for trial.

WOODRUFF: Can you explain for us exactly what the charges are against Donovan?

Ms. KRAMER: Well, they're fraud and larceny charges, but I think the easiest way to describe it is a bill-padding scheme that the Schiavone Construction Company -- that's Donovan's firm in New Jersey -- is accused of padding its bills to show that it had given a sufficient amount of money to minority businesses. You see, under a federal law, any government contract has to have a certain percentage of the money going to minority businesses.

WOODRUFF: Well, why is it that Donovan has -- I mean, he's argued of course his innocence all along, ever since the indictment came in October. Why is it that he has felt that he could beat the charges? What has he said his side of the story is?

Ms. KRAMER: Well, from talking to his lawyers, when he's maintained his innocence through a number of investigations over the last few years. I think his lawyers feel that there really isn't a lot of evidence that the prosecutors can present to the jury that would link him to the entire scheme.

WOODRUFF: Well, if that's the case, then what made them give up after today, do you think?

Ms. KRAMER: Well, I think that there's significant change in his feeling based on what happened today in court. I think that the lawyers were a little surprised at the ruling today. I think they thought that the judge was going to throw the case out, if not against all the defendants, then certainly against the labor secretary.

WOODRUFF: So that instead of continuing to fight he just decided to go ahead and resign his government position?

Ms. KRAMER: I think that's what happened.

WOODRUFF: How strong is the case, do you think?

Ms. KRAMER: Well, you kow, it really depends on who you talk to. If you talk to the district attorney from the Bronx, Mario Merola, he says it's a very, very strong case because he says it shows a pattern of fraud. I mean, there are 137 counts in the indictment, so it shows that there were a lot of things going on. But if you talk to defense lawyers, the defense lawyers representing Donovan maintain there isn't very much in the case to link Donovan to it, and that's been their contention all along.

WOODRUFF: Well, as you just mentioned, I mean, this is -- what happened in October is not the first problem Mr. Donovan has had. Virtually since the first few months he was inWashington there have been allegations and suspicions and so forth. Why is it that it has taken until now, do you think, for all this to come to a head?

Ms. KRAMER: Well, it's not that it's come to a head now. I mean, it came to a head in October when the district attorney in the Bronx returned his indictment. What happened now is the judge says this is going to go to trial and he says that the labor secretary must stand trial on the charges.

WOODRUFF: What happens in the case now?

Ms. KRAMER: Well, there's another court motion that they will argue next week to try and prevent the trial from going ahead, but after that the trial will be scheduled, and both sides have said they want to try it as soon as possible. So we'll see what happens.

WOODRUFF: Do you think there is any chance it could be settled out of court?

Ms. KRAMER: Oh, no, not at all. I think right now what'll happen is the case will go before a jury; the jury will decide whether the man is guilty or innocent.

WOODRUFF: Do you think the fact that he's resigned could have any bearing now on the case itself?

Ms. KRAMER: Not really. I think possibly the resignation is to give him time to prepare his defense, decide how he wants to go about it. I guess if he has no other duties and can concentrate on the case, he probably has more chance of succeeding.

WOODRUFF: Have you seen Mr. Donovan himself today or recently? I mean, how is he taking all this?

Ms. KRAMER: Well, I haven't seen him, but I understand he's taking it pretty well. He's maintained his innocence all along, and I guess that's what he's still saying.

WOODRUFF: Thank you, Marcia Kramer, for being with us.

Ms. KRAMER: Thank you.

WOODRUFF: Now, for a look at the political fallout of Secretary Donovan's resignation, we talk with Eleanor Clift, White House correspondent for Newsweek magazine. Eleanor, did he jump or was he pushed as a result of this judge's ruling?

ELEANOR CLIFT: Well, the White House is saying that this resignation took them completely by surprise. Mr. Donovan called the chief of staff this morning at 11:35 said he wanted to come to the White House and talk with him. Two hours later he was in the Oval Office offering his resignation. And the chief of staff, Don Regan, is saying that he came over, said he wanted out and bam, bam, bam, it was over.

WOODRUFF: Why do you think the President decided to accept it? Was it just a foregone conclusion?

Ms. CLIFT: Well, I think it was time. I think President Reagan has stood by him for three years, and I think finally the string has run out. We're looking now at the prospect of a trial where Mr. Donovan will be on the witness stand. And if he remained as labor secretary, you know, regardless of whether he is eventually proved innocent, it would be a circus, it would be a page-one story day in and day out and Mr. Reagan, I don't think, needs that.

WOODRUFF: What is the view at the White House of these charges? I mean, do they think he's innocent of guilty, or are they just reserving --

Ms. CLIFT: Well, there are two views at the White House and I think one belongs to President Reagan, and he maintains that Mr. Donovan is being politically railroaded and he feels, just as Mr. Donovan does, that there is no substance to these charges. And I think other White House aides are perhaps a little bit more cynical and think, you know, where there's this much smoke there's probably some fire. But with Mr. Reagan feeling as strongly as he does that this is a lynch mob on the part of the press, I think that Ray Donovan could have stayed on as labor secretary as long as he wanted. And so I think it was finally his decision to spare the President any more of this pressure that he finally did resign.

WOODRUFF: Well, maybe you're answering my next question, which was, why has he lasted as long as he has with all these charges swirling around?

Ms. CLIFT: Again, I think if you look at President Reagan's pattern, he tends to stand by his people, and I think he really saw it as pressure. I mean, he has used phrases like "lynch mob" and I think he felt strongly that you are innocent until you're proven guilty, and I think no president likes to think he is firing somebody for political reasons, and the most pressure was on the President during the campaign last year, and he still said, "He can stay."

WOODRUFF: Even though his top aides, like former Chief of Staff Jim Baker was quoted as saying, what, two years ago, that he thought Donovan would do the best thing by --

Ms. CLIFT: That's right. For all the feeling that Ronald Reagan is controlled by his aides, there are some things that he feels strongly about and you can't really talk him out of it. I think the White House inner circle during the first term, and presumably during this term, would just as soon have seen Ray Donovan gone. But Mr. Reagan felt otherwise.

WOODRUFF: Do you think -- is it your sense that the new regime at the White House under the new chief of staff Donald Regan -- do you think that the fact that this new team is in there had anything to do with the fact that they went ahead and accept --

Ms. CLIFT: Well, I don't think they even focused on it. I tend to believe their story that this was Mr. Donovan coming in and saying he wants out. And you have to remember this is the second term. There really is very little political pressure on them to get rid of somebody like Mr. Donovan, although now that he's gone I think it's a real opportunity. They can now try to repair some of their relationships with the labor movement, which have been at a real low, and they can even make good on some of the campaign realignment. I wouldn't be surprised to see an hispanic be named to the position.

WOODRUFF: Well, what is the speculation? What are some of the names that are being mentioned?

Ms. CLIFT: Well, they're saying at the White House that it's too early, but I think probably there are some yellowed lists in the top drawers of a lot of people. Ed Rollins, who is now the White House political director, has said publicly that he would like to be labor secretary, so I think we have to look at him as a candidate. But, again, I think they'd begin the search today and they're going to be calling labor leaders and various Republican leaders, and I would put my money on a hispanic. I don't know who, but I think that they do tend to look at these jobs as ways to send political messages, and Mr. Reagan is very proud of the support he received in the hispanic community, and this would be a way to reward them.

WOODRUFF: How much political damage do you think the President has suffered as a result of this Donovan case, if any?

Ms. CLIFT: Well, for three years Mr. Donovan has been fighting various legal battles, and Ronald Reagan won 49 states in November. So whatever damage he suffered, it certainly didn't affect his re-election. But I think that the President's relations with organized labor are an absolute disaster, and I think part of that can be laid at the doorstep of Ray Donovan, and we really haven't had much of a functioning Labor Department for three years. And so I think it's time to get on with it.

WOODRUFF: Do you think hecould suffer any further, any damage in the future, say, if Donovan were to be -- you know, if the charges were to be proven true?

Ms. CLIFT: I think it's embarrassing to -- if someone is convicted of all of these things and they're associated with the presidency. He's the first sitting cabinet member ever to be indicted, and that certainly is a blemish on Mr. Reagan's record, if that's how it turns out. But, again, he is now gone and I think once he's no longer the labor secretary his trial moves into the inside pages.

WOODRUFF: Is there any concern at the White House, now we've had several administration figures -- Paul Thayer, who was an official in the Defense Department, Rita Lavelle at the Environmental Protection Agency, and now Mr. Donovan and I guess a few others -- have all been in trouble in one way or another with the law. Is the White House concerned about that image overall?

Ms. CLIFT: Well, Fred Fielding, who is the White House lawyer, joked that he would have a reunion of all of these administration rogues and he would hold it in Yankee Stadium. But, again, these problems don't seem to touch the President personally and his popularity has not suffered and it's the phenomenon that has earned him the tag, "The Teflon President."

WOODRUFF: Well, Eleanor Clift, we thank you very much for joining us.

Ms. CLIFT: Thank you.

WOODRUFF: Robin?

MacNEIL: Once again the main stories of the day. Labor Secretary Donovan resigned after he was ordered to stand trial on charges of fraud and larceny. Attorney General Meese said the United States is moderately encouraged now by Mexican efforts to curb drug traffic. Secretary of State Shultz said Moscow and Washington should both take advantage of this moment of opportunity to improve relations. On this program Canadian Prime Minister Mulroney said he will press President Reagan on Sunday for progress on the problem of acid rain.

And we close tonight with a fresh look at robots. This weekend exhibitors from all over the world will be showing off the last word in robots at an exposition in Japan. Our report is by Taro Kimura, anchorman for the Japan Broadcasting Corporation's evening news program. Show-Off Robots

TARO KIMURA, Japan Broadcasting Corporation [voice-over]: World Exposition '85 will open March 17th here in Tsukuba City, Japan. Unlike other expos, this will be strictly a science exposition. Preparations are now in the final stages. The train of tomorrow, which floats a few inches above the ground by magnetic reactions will carry visitors around the site for the first time ever. But the biggest attractions are the robots. Each participant worked hard to develop clever ones to attract more visitors to its pavilions. There will be a robot that spins a top on a sword blade, a robot performing caligraphy as skillful as an ancient caligrapher, and a robot that can paint your portrait. It looks at you, analyzes your features and paints your portrait instantly. This robot will probably be the most popular. It plays music if you show it a score, or even plays an accompaniment as you sing. These are called second-generation robots. First-generation robots did only what they were told to do. Second-generation robots can now perceive. Robots can provide fun for humans. They also serve humans. And, furthermore, they can be put to work for humans. This robot will sweep the floor for you. It finds its way by ultrasonic radar. Soon you may find lawn-mowing robots or even leaf-raking robots at your home doing all your backbreaking jobs.

[on camera] The big question, will robot be man's best friend?

ROBOT: It certainly will. This has been Taro Kimura reporting from Tokyo.

MacNEIL: Good night, Judy.

WOODRUFF: I don't know. Should we be worried about our jobs, Robin? Good night. That's our NewsHour for tonight. I'm Judy Woodruff. Thank you and have a nice weekend.