CAMPBELL, FEINSTEIN BARE FISTS IN 1ST DEBATE

Accused by her underdog Republican challenger Tom Campbell of concealing her
family's financial interests in China, U.S. Sen. Dianne Feinstein lashed
back with a vehement denial Tuesday in the first of their two pre-election
debates.

"What a difference desperation makes, Tom," said Feinstein, a Democrat. "I
am really surprised. . . . I own nothing in China, (and) my husband has
divested of all his investments."

Undeterred, Rep. Campbell, R-San Jose, said, "Your family continues to
derive income from investments in China. . . . My point is that you have an
obligation to disclose (and) you did not disclose when I asked you to."

Feinstein responded that she was "sorry that he (Campbell) chose to open
with an attack. I've been in public life for 30 years and never an ounce of
scandal or conflict. I take my public service as a trust."

Campbell, who has consistently run 15 to 20 points behind Feinstein in the
polls and has repeatedly challenged her to debate, seized the opportunity of
Tuesday's face-off to make the points he hopes will give his candidacy a
major bump: the alleged financial involvement of Feinstein's husband,
Richard Blum, in investments in China and drug policy.

Feinstein said her husband has scrupulously avoided doing business in a way
that would impair her senatorial career.

"I don't know any other American businessman who would do what my husband
has done to avoid even the appearance of a conflict of interest," she said.

And even though Campbell continued to insist that her family has investments
in China, Feinstein said that every interest Blum had has been sold.

The Senate Ethics Committee, she noted, has said that Blum's past
investments in China do not pose a conflict of interest.

True enough, Campbell said, but Feinstein's financial disclosure statements
showed "only what was required of you," and not the extent of her husband's
dealings with China.

The Senate's disclosure rules are minimal, he said, and "she's comfortable
with that system. I'm not comfortable with that system. As a senator, I
would shake up that system."

Debate Held In Santa Monica

Feinstein opened and closed the hourlong debate, held at a Santa Monica
cable TV station, by emphasizing her effectiveness as a senator and
enumerating the laws she has put on the books, ranging from gun control to
desert preservation to freezing the assets of cartels that violate the law.

Feinstein observed that, by contrast, Campbell the congressman has
introduced no legislation that has become law.

Besides, she said, Campbell "has missed half of the (House) votes this year.
I think how you do the job you have is indicative of how you'll do the job
you want to get."

Campbell chided Feinstein for voting for a $1.3 billion appropriation to
interdict the cocaine trade in Colombia, and for playing down the role of
U.S. advisors whose presence in Colombia will be financed by it.

"The U.S. does have troops there. We just call them advisors. That is a
distinction we started with in Vietnam," he said.

Campbell said the $1.3 billion should be used for drug treatment. Feinstein
said she's all for drug treatment, but opposes treating addicts with drugs,
except for the legal drug Methadone.

Feinstein said she opposes Proposition 36 on the California ballot, while
Campbell is for it. The proposition would provide treatment - instead of
jail time - for one- and two-time drug offenders whose crime is simple
possession.

Limiting Campaign Donations

Both said they will support Proposition 34, which limits individual campaign
contributions and established voluntary spending limits.

But Campbell pointed out that he has refused to accept contributions from
political action committees for his past four elections, while Feinstein has
accepted them.

Feinstein responded that just 16 percent of her contributions have come from
PACs and added that "soft money" from groups technically not affiliated with
a particular candidate is a much more severe problem.

She accused Campbell of creating his own PAC, a charge that Campbell called
a distortion.

"It's not fair to say that I started a PAC," he said. "I started the Center
for Free Enterprise," from which he did not benefit as a candidate.

Feinstein and Campbell are scheduled to hold a second debate at 6 p.m.
Friday on KRON-TV Channel 4 in San Francisco.