US, ex-nuclear scientist in spy probe reach deal

WASHINGTON, June 2 (Reuters) A former nuclear scientist once suspected of spying will get 1,645,000 dollar in a settlement reached today of his lawsuit accusing US government officials of disclosing personal information about him and the probe.

As part of a settlement filed in federal court, the US government agreed to pay the scientist, Wen Ho Lee, 895,000 dollar to cover his legal fees and costs ''in full and complete satisfaction of all claims in this action.'' In addition to the money paid by the government, the news organizations of five reporters who had been held in contempt for refusing to disclose their sources for stories about Lee agreed to pay him 750,000 dollar, Lee's lawyer said.

Both Lee and the government said the settlement agreement should not be viewed as an admission by the US government that the allegations asserted by Lee were true.

Lee was suspected of spying for China while he worked for the Los Alamos National Laboratory in New Mexico. Lee was fired in 1999. The government's case against him later collapsed, and Lee eventually pleaded guilty to one lesser charge.

Lee's lawsuit accused US government officials from the Department of Energy, the Department of Justice, and the FBI of violating the Privacy Act by improperly disclosing the information.

After Lee's lawyers said they had been unable to learn from government officials who disclosed the information, they issued subpoenas to journalists about the identity of their sources and the information they provided.

A US appeals court upheld an order that the journalists must be held in contempt for refusing to reveal their confidential sources for their stories.

Lee's lawyer, Betsy Miller, said the journalists would drop their pending appeal before the Supreme Court, as dismissal of the case makes their appeal moot.

She said the five journalists involved in the settlement are Robert Drogin of the Los Angeles Times; James Risen of The New York Times; Josef Hebert of The Associated Press; Pierre Thomas, formerly of CNN and now at ABC News; and Walter Pincus of The Washington Post.

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