PAYBACK TIME?

When TIME reported two weeks ago that Hong Kong interests used a U.S. shell corporation to guarantee a $2.2 million loan to a G.O.P. think tank, ex-party chairman Haley Barbour (the think tank's head) denied knowledge of foreign backing. But a secret memo obtained by TIME shows that a year before Young Bros. Development-USA collateralized the 1994 loan, Barbour was advised of plans to seek overseas funds for the National Policy Forum. Last week the G.O.P. refunded $122,400 in Young Bros. campaign money, conceding its illegal Hong Kong origins. Democrats, smelling blood after months of battering for their fund-raising excess, are...

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