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(generated from captions) Good evening. I'm Ricardo Goncalves. The Reserve Ricardo Goncalves. The Reserve Bank has cut the official cash rate by 0.25% to a 3- year low of 3%. Today's rate cut from the Reserve Bank is the early Christmas present that hardworking Aussies deserve. But the big four banks are yet to pass on the reduction. NATO is set to approve the deployment of Patriot missiles to defend Turkey's border with Syria. The US has warned there will be consequences if Syria's President turns chemical weapons on his own people. Six people have been killed by Typhoon Bopha, which is bearing down on the southern Philippines, with scientists describing it as potentially the worst storm ever to hit the country's south. And Prince William and his wife, Kate, have confirmed they are expecting their first baby. The Duchess of Cambridge is starting a second day of hospital treatment after

NARRATOR: Buoyed by
his convincing re-election, Bill Clinton sailed confidently
into his second term.

The economy was booming, lifting millions of people into better jobs, better homes
and better lives. We have much to be thankful for. With four years of growth, we have won back
the basic strength of our economy. With crime and welfare rolls
declining, we are winning back our optimism - the enduring faith
that we can master any difficulty. Around the world, American prestige
and power had never been higher.

Even Clinton's longing to
"repair the breach" with Republicans seemed possible.

MAN: It was two different worlds - 1997, the beginning of
Bill Clinton's second term, was totally different
from the first term. It was American politics
the way it should be. A Republican Congress working
with a Democratic president, trying to find areas
they would agree on. The hatred toward Bill Clinton
was gone. The hatred toward
Hillary Clinton was gone. Things had finally quieted down.

But in Bill Clinton's life,
things never stay quiet for long.

By early 1997, at great risk
to himself and his presidency, Bill Clinton had been carrying on
his affair with Monica Lewinsky for over a year.

MAN: I've asked myself
a number of times why he put himself
and his presidency in jeopardy in such a careless way.

The presidency is probably
the loneliest office in America. Regardless of your friends, regardless of how good your marriage
is, regardless of anything, you are alone there at the top.

And maybe Bill Clinton, who so much
needed and wanted to be loved, couldn't say no to someone who... ..was going to give him affection
and wanted affection back.

The previous spring, Lewinsky's superiors
in the White House had begun to notice
her attraction to the president.

Quietly, she was transferred to
a job across town at the Pentagon.

There, Lewinsky befriended a career
civil servant named Linda Tripp.

Like Lewinsky,
Tripp had come to the Pentagon after years working
at the White House, first in the Bush administration and then - less happily -
in Clinton's.

MAN: Linda Tripp didn't like
the Clinton people. She didn't like their politics,
she didn't like their personalities, she didn't like their social lives, and she simmered with resentments. And she finds this young woman
a couple of cubicles away, Monica Lewinsky, who decides to cry on her shoulder.

WOMAN: It was very much a big sister-little sister,
mother-daughter relationship. Monica would tell her everything. Linda genuinely cared about Monica, but there was one
overriding emotion, and that was what
Bill Clinton was doing. And I'm telling you,
this was an angry woman.

Shortly before meeting Lewinsky, Tripp had approached conservative
literary agent Lucianne Goldberg about writing a tell-all book
on the Clinton White House. But the project had gone nowhere.

In the fall of 1997, she contacted
Goldberg with a new project - the true story of an ONGOING affair between a White House intern and
the president of the United States.

She called me and she said, "He's having an affair
with a girl who's 23 years old." And I said, "Yeah, yeah." You know, the kind of agenting that
I did, I heard a lot of wild stuff, and people have to prove things. So she said, "No, I'm not kidding
you. He's having an affair with a... "And I know the girl
and I talk to her every day." And I said, "Well, can you prove
this? Do you have pictures? "Is she willing to step forward? "Is she willing to go on
'The Today Show' and say...?" And she said,
"Well, no, I'm sure she wouldn't. "This is a big secret." I said, "Well, you've got to do
something to prove to me "so I can prove to a publisher
that this wild story is true." And I said, "You say
you talk to her every day. "How about taping
your phone conversations?" And she agreed that
that would be a cool idea, and she went to Radio Shack
and bought a tape recorder and plugged it into her phone.

MONICA LEWINSKY: (ON RECORDING)
Linda, I don't know why I have
these feelings for him. I never expected
to feel this way about him. And the first time I ever
looked into his eyes close up and was with him alone, I saw somebody totally different
than I had expected to see. And that's the person
I fell in love with.

Linda wanted the world
to know about this, and I think the motivation
was no... ..you know, no deeper,
no more shallow than that. That was it. She wanted the world
to know about this relationship.

MAN: She came to believe
that fate did call her to expose these defects
in this president to the country. On the other hand, she becomes entwined in a scandal
that she helped to create. LEWINSKY: (ON RECORDING)
He was supposed to call me again, but I wasn't home
and I was afraid to call. LINDA TRIPP: What happened?
I don't know. I saw him for 60 seconds. So how was it? I mean, he...we hug,
and I gave him the paperweight. So, what did you wear? GOLDBERG: I knew
if the story broke huge that people would start
calling Linda, and Linda would say,
"Call my agent." And they would call her agent, and her agent would make a book deal
and then would make some money, and she would get a little money
and I would get 10% of it, and...and that's the way
the world works.

Goldberg suggested Tripp reach out
to 'Newsweek's Michael Isikoff. Before long, the two were having
regular conversations.

MAN: She would kind of tease me and she told me early on
that there was a woman, who had been an intern, and that...

..she was having an ongoing affair
with Bill Clinton. I was taken aback,
as anybody would be. So, I wanted to get Linda Tripp
to tell me as much as she could, and so I kept talking to her.

Linda Tripp was not just
talking to Isikoff. She had also begun sharing her story with the independent counsel
investigating the Clintons.

By 1997, after more than two years, Kenneth Starr's investigation
into Whitewater had stalled. Short on evidence
or reliable witnesses, he had too little to bring charges
against the president or first lady.

We know that they were running
out of gas and running out of rope, and had just about
completely failed, until Monica came along.

In early January 1998, Starr's office received
a phone call from Tripp. She revealed the existence of her
tape recordings of Monica Lewinsky. At first, Starr saw little value
in the tapes. A presidential affair, no matter
how sordid, was not illegal. But there was something in Tripp's
story that caught Starr's attention. The president had asked
his friend Vernon Jordan to help find Lewinsky a job
in the private sector. Could this be an attempt, Starr
wondered, to buy Lewinsky's silence?

LEWINSKY: I'm just...I'm starting to
get a little nervous about Vernon. TRIPP: Why? I just...I just want
everything to be easy. I want him to call me and say, "You know, how does this amount
of money, doing this here sound?" And I say, "That's sound great." He says, "OK.
Consider it a done deal."

Clinton had good reason to worry about whether Lewinsky
would keep their affair secret. She had just been subpoenaed to testify in a sexual harassment
lawsuit against the president brought by a former Arkansas
state worker named Paula Jones.

Tipped off to the affair,
Jones' lawyers believed the president's relationship
with Lewinsky would demonstrate
a pattern of behaviour.

I thought it showed
President Clinton's proclivity to make sexual advances to extremely
young, low-level employees, and President Clinton had obtained
jobs for Monica Lewinsky as part of his effort
to control her. Highly relevant
to Paula Jones' case.

Ken Starr was watching the Jones
lawsuit with great interest. If Clinton was trying to influence
Lewinsky's testimony, he would be committing
a major crime. Suddenly, Starr glimpsed
a bridge from Whitewater to a potentially more fruitful
area of investigation. GORMLEY: The bridge is that the
president and those close to him may be encouraging Monica to lie
in the Paula Jones case, and therefore suborning perjury. That's the little connection
they make. It's tenuous at this point,
but they go for it.

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With Starr's determined efforts, three seemingly unrelated threads
from Clinton's past and present - Whitewater, Paula Jones
and Monica Lewinsky - had suddenly come together in one potentially devastating
investigation. And a single reporter threatened
to up-end the whole thing.

I knew we had
a blockbuster of a story. And, of course,
I had to call Starr's team. And fair to say that when I did,
they freaked out. They realised that
were I to publish a story, it would blow THEIR investigation
wide open.

Starr hoped to convince Lewinsky to secretly tape-record
the president before Isikoff's story
tipped him off.

On January 16, he sent Linda Tripp
to meet with Lewinsky at a food court
at the Ritz-Carlton Hotel. Before the friends sat down,
FBI agents swooped in. TOOBIN: The FBI grabs Monica
in front of the Cinnabon and takes her upstairs
in the Ritz-Carlton and tries to get her to flip. But Monica basically
just drives them crazy with her histrionics,
with her refusal to talk. They felt like one of these scenes
in a movie where a bunch of grown men are trying to change
the diapers of a baby and don't know how to do it. Monica's crying,
she's kind of wailing out loud.

What they weren't counting on,
what they hadn't figured out, is, "So, what do we do
when Monica is not going to tell us "whether she had an affair
with Bill Clinton?"

Unable to secure Lewinsky's
cooperation against the president, Starr still had a card to play. The next day, January 17, 1998, Clinton was scheduled to give
his deposition under oath in the Paula Jones lawsuit. If he lied about his affair
with Lewinsky, Starr would be able to bring
a charge of perjury.

GOLDBERG: He was about to testify, and they knew he was
gonna lie about Monica, and that was,
if you want to call it, the trap. And when a man is asked about this,
a married man is asked about this, he's gonna lie. And once he lies, we got him.
We got him! JUDGE: And you may show the witness
definition number one... Barred from questioning
the president himself, Starr had to rely on
Paula Jones's lawyers. Lead attorney Jim Fisher
began the deposition by introducing a definition
of 'sexual relations' taken from a federal statute. FISHER: In an effort
to avoid ambiguity, I thought I would use a definition that was well grounded
in federal law. So I thought there could be no doubt
that these were...

..unambiguous definitions for which the law had
a well-recognised meaning. Fisher's efforts to avoid ambiguity
had the opposite effect, leaving Clinton a loophole
through which to escape.

FISHER: (IN VIDEO)
So the record is completely clear, have you ever had sexual relations
with Monica Lewinsky as that term is defined
in Deposition Exhibit 1? I have never had...um, sexual
relations with Monica Lewinsky. I have never had an affair with her. If they had simply asked him, "Did Monica Lewinsky ever perform
oral sex on you?" the gig would have been up. Instead, they gave him this ridiculously complicated,
hard-to-understand definition of sex which allowed him to parse. If I could have done it over again, I would have just asked
the salacious questions. I would have let him have it. I was trying to be respectful
and I paid a price for it.

Having said that, he clearly didn't
answer the questions honestly. If she told someone that
she had a sexual affair with you beginning in November of 1995, would that be a lie? It's certainly not the truth. It would not be the truth.

The turning point was when
I started to ask him about gifts that he had given to her
and she had given to him, and I described some of them
quite specifically.

There was a book of poetry
by Walt Whitman, for example.

I thought his mood changed visibly
at that point.

His face became bright red. There was tension in his face.

He knew at this point
there was a mole, there was a rat in the woodpile. Someone has given all of this
damning information to these people.

Clinton's secret affair
with Monica Lewinsky was now hurtling toward
public exposure. The very day that the president
was deposed in the Jones lawsuit, Michael Isikoff filed his story
on the Lewinsky affair. But at the last minute, his editors
at 'Newsweek' backtracked and decided to kill the story. Obviously, we had
an enormous scoop here that was going to shake Washington. Some of my colleagues
and some of the editors agreed, but at the end of the day,
the brass at 'Newsweek' just were not willing
to pull the trigger. Michael told me. He said,
"They aren't gonna run with it. "They're afraid of it.
They don't like it. "'Nasty stuff'.
They don't want to do it." And I said, "Well, what am I gonna
do? I'm sitting on this thing."

In her frustration, Goldberg turned to an internet
gossip columnist named Matt Drudge. A couple of people said,
"Call Matt Drudge." I said, "Well, tell him to call me." So, at 11:00 that night,
he called me and that was it. It went kaboom! The President, the intern,
the accusations and the denials. The allegations that the President had an illicit affair
with a 21-year-old intern and then attempted to cover it up blasted through
the White House today. This scandal could unravel
the administration. Over the next 72 hours, the story
made its way around the world. (SPEAKS FRENCH) (SPEAKS GERMAN) ..Monica Lewinsky... Caught unawares, Clinton's cabinet
members rushed to his defence. I believe that the allegations
are completely untrue. I'll second that... Aides who had worked for him
for five, six years at this point are...are just...on the floor. They can't figure out what they're
supposed to think about this, much less what they're
supposed to do about this. REICH: I was convinced
that Bill Clinton had been set up. "He's got all these enemies
who are out to get him. "He wouldn't be so stupid "as to jeopardise
his entire presidency. "For what?" No, that was not
the Bill Clinton I knew.

Clinton did confide in the one
person he knew would not judge him.

MAN: When the Lewinsky
scandal broke, the President paged me
and I returned the call. And he said, "Ever since
I got here to the White House, "I've had to shut my body down -
sexually, I mean. "But I screwed up with this girl. "I didn't do what they said I did, "but I may have done so much
that I can't prove my innocence." And I said to him,
"The problem that presidents have "is not the sin, it's the cover-up, "and you should explore just telling
the American people the truth." He said, "Really?
Do you think I could do that?" And I said, "Let me test it.
Let me run a poll." So I took a poll and I tested
popular attitudes on that, and I called him back and I said,
"They will forgive the adultery, "but they won't easily forgive
that you lied." JIM LEHRER: Mr President, welcome.
Thank you, Jim. Clinton disregarded Morris's advice. In interviews
days after the story broke, he continued to hide
his relationship with Lewinsky. The news of this day is that
Kenneth Starr, independent counsel, is investigating allegations
that you suborned perjury by encouraging a 24-year-old woman,
former White House intern, to lie under oath
in a civil deposition about her having had
an affair with you. Mr President, is that true? That is not true. That is not true. I did not ask anyone to tell
anything other than the truth. There is no improper relationship. And I intend to cooperate
with this inquiry. Uh, but that is not true. He says, quite indignantly, "There is no relationship
with Monica Lewinsky," and people begin to focus
on the words. "He said 'is', didn't he?
He didn't say 'was'. "What is he trying to say here?
Is he parsing here?" I didn't notice the peculiar
tense issue until later. But I did think to myself, I said, "Boy, there's got to be
a stronger denial of this." And I think some group of us said, "Look, you're denying this.
You've got to be strong. "You've got to get out there
and say how outrageous this is." And of course, I think that was
dreadful advice in retrospect. I want you to listen to me.
I'm gonna say this again. I did not have sexual relations
with that woman, Miss Lewinsky. I never told anybody to lie.
Not a single time. Never. These allegations are false. And I need to go back to work for
the American people. Thank you. (APPLAUSE) GOLDBERG: I was watching
with a friend in my office and I said, "That is it.
This man is dead meat. That is it. "Because I know that he's lying, "and if I know that he's lying, "then the rest of the world
is gonna know he's lying."

Having set off
on a course of deception, there was no turning back. Clinton continued to press his lie,
even to Hillary. BAKER: He tells her it's not true. He tells her that Monica Lewinsky
was a troubled young woman, that he had just tried to be nice
to her, to mentor her in some ways. And that's a story
that Hillary Clinton hangs on to like a life raft. The day after Clinton's denial, Hillary appeared
on national television. I just think that a lot of this
is deliberately designed to sensationalise charges
against my husband, because everything else
they've tried has failed, and... She focused her energy
and her anger and her ire at the external enemies - at Ken Starr, at the press,
at the Republicans in Congress. They were the ones who were
doing this, not her husband. The great story here for anybody willing to find it
and write about it and explain it is this vast right-wing conspiracy that has been conspiring
against my husband since the day he announced
for president. BAKER: She says, "This is all about
the vast right-wing conspiracy," and in that moment,
sort of sets the tone for the defence of the president
against these charges.

To the Clintons, the Lewinsky scandal
was just the latest front in a war waged by their
political enemies to destroy them. The Lewinsky scandal was not really
the Lewinsky scandal. It was really an attempt
by the Republican Party to have a coup d'etat based on having discovered
the president's personal behaviour.

This time, however, even some allies of the Clintons
found their protestations hollow.

MAN: You can never blame
your enemies for doing what your enemies
will predictably do. You can only blame yourself for
what you have given to your enemies. If you've given them
absolutely nothing, guess what they're gonna
be able to do - nothing.

VOICEOVER: Right now, disease
is spreading through communities. Natural and man-made disasters
are putting lives at risk. But without the money
to provide medical aid, our ability to help those in need
slows to a halt. By donating $20 a month
to Medecins Sans Frontieres, you can help keep things going, providing surgical equipment
and vital vaccinations, bringing medical assistance
to people who need it, no matter who or where they are. Please call this number
or visit msf.org.au.

As the scandal raged around him, Clinton did his best
to focus, he said, "on the job the American people
hired me to do".

BAKER: He's coming to work
every day, he says, and he's going to do the job
that's in front of him. Privately, behind the scenes,
it's a completely different story. OF COURSE he's obsessed by this.
OF COURSE he's consumed by this. OF COURSE he is distracted. He has a meeting with the head
of the World Bank, for instance, who goes back to his office and then
calls Clinton's chief of staff and says, "It's like
he wasn't even there."

"I feel like a character
in the novel 'Darkness at Noon'," Clinton told an aide. "I am surrounded
by an oppressive force "that is creating a lie about me "and I can't get the truth out." In fact, the truth was closing in.

All he can do is buy time. All he can do is hope
that Starr doesn't have the goods, doesn't have the evidence, that there's no physical evidence
that could prove it.

Before long,
Starr had his physical evidence. In July, Monica Lewinsky reached
a deal to give her testimony in exchange for
immunity from prosecution.

As part of the deal, she turned over a blue dress
stained with Clinton's semen.

The next day, seeing no way out, Clinton himself agreed to answer
questions before Starr's grand jury.

Before the president faced Starr,
however, he had to face Hillary.

That morning, Clinton awoke
the first lady from a deep sleep.

Pacing the room,
he finally confessed he had lied. It was...it was probably the most
shattering moment in her life.

He'd lied to her and he'd used her. He let her go out and, essentially,
make alibis for him.

And it not only jeopardised everything they'd worked for
all their lives, but totally humiliated
her and Chelsea. And, you know,
she couldn't trust him anymore.

Later that day, Clinton's deposition
was scheduled to take place in the Map Room of the White House. The president's lawyers
had won an important concession from Ken Starr - the interrogation could not last
longer than four hours.

MAN: Good afternoon, Mr President.
Good afternoon. Could you please state
your full name for the record, sir? William Jefferson Clinton. GORMLEY: Bill Clinton's strategy
was to run out the clock. And so he would start talking
about little stories from Arkansas, he would, you know, take an aside and give a lecture about justice
and...and the American dream. And all along,
the clock is ticking out. Let me begin
with...the...correct answer - I don't know for sure... Well, it would depend
upon the facts. I think on the whole, people
in the Uniformed Secret Service... I actually circled number one.
This is my circle here. I remember doing that so I could
focus only on those two lines... It depends upon what
the meaning of the word 'is' is.

GORMLEY: The Starr prosecutors walked out of that
grand jury testimony totally demoralised. They knew they had been clobbered
by President Clinton. And even though it was just obvious
what he was doing, it was a masterful performance
on Clinton's part.

If Clinton could finagle his way
out of Starr's legal trap, he could not, he knew, escape the
judgement of the American people. MAN: We've got about 45. That night, President Bill Clinton
addressed the nation in one of the most unusual
and anticipated broadcasts in American history. Stand by. Five seconds.

Good evening. This afternoon, in this room,
from this chair, I testified before
the Office of Independent Counsel and the grand jury. I answered their questions
truthfully, including questions
about my private life, questions no American citizen
would ever want to answer.

Still, I must take
complete responsibility for all my actions,
both public and private, and that is why
I am speaking to you tonight. Indeed, I DID have a relationship
with Miss Lewinsky that was not appropriate. In fact, it was wrong.

For many of those
closest to Clinton, this was the first time
they'd heard him admit the affair and they were deeply hurt. Yes, I felt betrayed.

He lied to me. Yeah.

(CHUCKLES) He lied to
a lot of people about that. Not least of whom was himself.

BAKER: The morning after
his grand jury testimony and his speech to the nation, he and Hillary and Chelsea
head off to Martha's Vineyard for their annual vacation. It may be the worst-timed
family vacation in the history of the world, but there they are, heading out to
the helicopter on the South Lawn. And the staff is sitting
in the White House thinking, "What are we gonna do
about the walk to the helicopter?"

They decide they can't do anything. They can't orchestrate it.
They can't spin it. They're powerless to affect it.

And in the end, it falls to
Chelsea Clinton, a teenager, to take both of their hands,
on her own initiative, take her father's hand in one,
her mother's hand in another, and walk across the lawn, literally the bridge
between her parents at this moment of crisis
between them.

As the Clintons spent a tense
vacation on Martha's Vineyard, Washington was abuzz
with talk of resignation or even impeachment.

GORMLEY: At this moment,
he was in maximum peril.

Clinton's advisers
were acutely aware that President Nixon
was driven out of office not by the opposing party,
but by his own party, when the Republicans came to him and
said, "Enough. You have to leave." That's when
President Nixon resigned. And so there was real concern that Democrats were
going to begin bolting, and they were not returning
President Clinton's calls. They were not happy with this. There was a real concern that this
could be the beginning of the end.

It had been a quarter of a century since Richard Nixon
had resigned the presidency rather than endure an impeachment. Now many were urging Clinton
to do the same.

But Clinton had no such intentions.

ISIKOFF: There were
the inevitable comparisons between Nixon and Clinton. I always thought there was
a fundamental difference. Both Nixon and Clinton
were convinced that it was their political enemies that were responsible for
all their troubles. The difference is
that Nixon always suspected that his political enemies
were better than him. Clinton hated his political enemies and were convinced
they were beneath him. And that was the reason,
at the end of the day, Clinton was never gonna do
what Richard Nixon did, and resign. Uh, yes, go ahead. Mr President, all these questions
about your personal life have to be painful
to you and your family. At what point do you consider
that it's just not worth it and you consider
resigning from office? (CHUCKLES) (JOURNALISTS CHUCKLE) Never.

You know...
I was elected to do a job.

I think the American people know
two or three things about me now that they didn't know
the first time...

..this kind of effort
was made against me.

I think they know that I care
very much about them...

whose voices aren't often
heard here. And I think they know I have worked
very, very hard for them.

Hard work had always been
Clinton's salvation in moments of vulnerability. Now, as he sought to show
the American people he could still function, he bore down on a suddenly violent
foreign policy crisis. (BOMBS EXPLODE, SIRENS WAIL)

Early on the morning
of August 7, 1998, two truck bombs
exploded simultaneously outside US embassies
in Tanzania and Kenya.

The death toll reached 200,
with another 5,000 injured.

Within hours,
the FBI had pegged responsibility to a little-known terrorist
organisation called al-Qaeda.

Clinton soon ordered
his national security team to hunt down and destroy al-Qaeda and its elusive leader,
Osama bin Laden.

MAN: The CIA had information
it thought was reliable information that Bin Laden
and the al-Qaeda leadership were going to come together
at a certain camp in Afghanistan at a certain date,
at a certain time.

We went to the president and said, "We want to be able to land
cruise missiles at that camp "while they're there."

The order would have huge
political risks. Clinton knew
that it would be widely seen as an attempt to distract the public
from his own personal problems. Somebody said something about, "Well, you know,
we have to take into account "the political realities
in the United States at the moment." Which was sort of code words for, "You've got this
Monica Lewinsky scandal going on." And he snapped. He just very quickly and sharply
said, "You don't think about that. "You think about national security. "You give me the national security
advice you would give me "if this were not going on. "You let ME worry about that."

On August 20, Clinton ordered a series
of missile strikes against al-Qaeda, targeting training camps
in Afghanistan and a plant in Sudan
that the administration claimed was involved in making
chemical weapons. The missiles narrowly missed
their main target. We didn't kill Bin Laden. We didn't
have that to show for the attack. And people, frankly a lot of people
in the Congress and in the media, said this was just an attempt
to "wag the dog". The timing of all of this
is more than coincidental and I think it may very well
run the risk... ..the President may run the risk of having an even more cynical view
of his behaviour. CLARKE: He knew that.
He knew that was gonna happen. He knew it would make it worse
for him to do this. But he launched the attack because he thought it was the right
national security thing to do - that's what we told him. And he said, "I'll do it anyway, "even though it makes it
worse for me."

We were only off
to see the rellies. Carol insisted
we register our plans on the Smartraveller website. Well, it's a good thing she did. We were there
when the earthquake hit. But 'cause Smartraveller
knew where to find us, we were amongst
some of the first contacted. We called the kids in Oz,
and soon we were heading home. Even if you're visiting rellies, make sure
you visit Smartraveller first and register your travel plans. It's free, it's easy
and it's smart.

Things were deteriorating quickly
for the president. On September 9, Kenneth Starr
finally delivered to Congress the long awaited results
of his investigation.

In 450 pages
of sometimes salacious detail, Starr laid out his case
against Clinton for perjury, obstruction of justice
and abuse of office in the Lewinsky affair, while dropping almost all reference to his original investigation
of Whitewater.

MAN: Lawyers are thorough.
GOOD lawyers are thorough. There could be absolutely
no gap whatsoever between the facts and then a reasonable conclusion
to be drawn from the facts. The case had to be proven.

REPORTER: The House Sergeant at Arms
officially unsealed the document at midafternoon. It had been advertised as steamy, and you could almost see the steam
rising as the boxes came open. REPORTER: According to the sources,
the report focuses almost entirely on the President's relationship
with Lewinsky. However this turns out, it is a turning point
in Mr Clinton's presidency. It is not an exaggeration to say that he has less control
of his destiny than at any time
since he was elected.

The Starr report
was a turning point, but not in the way the independent
counsel or his Republican supporters had expected. Polls showed that after four years
and $40 million, most Americans believed
the investigations against Clinton were more persecution
than prosecution. MAN: The Republicans had so undercut
their own credibility in the way they were going after him that people, although they deplored
what he had done and thought it was stupid and it demeaned
the office of the presidency and tarnished the presidency
and tarnished him and had been a devastating blow
to Hillary and Chelsea and all those things
that went through people's minds, they looked at the Republicans
and they'd had enough already.

After the release of Starr's report, Clinton appeared in the Rose Garden to offer his first full-throated
apology to the American people. I am profoundly sorry for all I have done wrong
in words and deeds.

I never should have misled
the country, the Congress, my friends or my family.

Quite simply, I gave in to my shame. I have been condemned by my accusers
with harsh words, and while it's hard to hear yourself called
'deceitful' and 'manipulative', I remember Ben Franklin's admonition that our critics are our friends,
for they do show us our faults.

If Clinton was willing at last
to take responsibility, the American people
were willing to forgive him.

WOMAN: He disappoints them
every time on some level, but he always gets up
and tries to make it better. You know, what else can you ask
from a sinner, right? And that's how he would define
himself - "I'm a sinner. "And I try to be better every time, "and I learn from my mistakes
and I go forward." And I think the American public is pretty forgiving of a guy
who sees himself as a sinner.

Weary of the attacks on Clinton, Americans punished
Republican candidates in the congressional elections
in November. Upsetting precedent, Democrats
actually gained seats in Congress.

I think the message the American
people sent was loud and clear - "We want progress over partisanship
and unity over division."

Blamed for the defeat, Newt Gingrich resigned his post as speaker of
the House of Representatives.

To the frustration
of his Republican opponents, Clinton seemed to have won over
the American people again.

MAN: There are two or three things that I have witnessed
in my political career that I never could figure out. The fact that a lot of people
didn't think that that was a serious problem that he, you know, perjured himself
in his testimony and that he'd had a relationship
with that woman Monica Lewinsky, that did shock me, and I've never quite figured out
how in the world could that be, that he'd come out
the back end of it pretty much where he was
at the beginning. It's just one of those things
I've never quite figured out.

Determined to punish the president, House Republicans,
led by Texas Congressman Tom DeLay, played their last card -
impeachment. A resolution impeaching
William Jefferson Clinton, President of the United States,
for high crimes and misdemeanours... The Republicans were gripped by just
unreasoning hatred of Bill Clinton. They just despised the man and could not stand that
he was gonna get away with this. MAN: Article 1 - in his conduct while
president of the United States, William Jefferson Clinton, in violation of
his constitutional oath faithfully to execute the office
of president of the United States, has wilfully corrupted
and manipulated the judicial process
of the United States... On Saturday, December 19, the House of Representatives
voted along party lines to impeach the president on two of four counts involving
obstruction of justice and perjury. On this vote, the yeas are 228,
the nays are 206. Article 1 is adopted.

Bill Clinton had become only the second president
in American history and the first in more than a century to be impeached by the House.

The American people, I call them
to my side here at the podium to verify to you that the President
committed falsehoods under oath. Republican leaders moved
the proceedings to the Senate, where a two-thirds majority
was required to convict the president
and remove him from office. (GAVEL BANGS) The Senate will convene
as a court of impeachment. We are here today because
President William Jefferson Clinton decided to put himself
above the law. This is not about sex. This is about
obstruction of justice. This is about a pattern.
This is about a scheme. This is about a lot of lies... For three long weeks,
with little hope of success, 13 Republican congressmen
pressed the case against Clinton. This is not about sexual misconduct any more than Watergate was about
a third-rate burglary.

Finally, Arkansas Democratic
Senator Dale Bumpers rose to express the sentiments felt by many in the chamber
and the country as a whole. We are here today because the President suffered
a terrible moral lapse.

A marital infidelity.

Not a breach of the public trust. Not a crime against society. It is a sex scandal.

H.L. Mencken said one time, "When you hear somebody say,
'This is not about money,' "it's about money." (LAUGHTER)

And when you hear somebody say,
"This is not about sex," it's about sex.

The Senate adjudges
that the respondent, William Jefferson Clinton,
president of the United States, is not guilty as charged
in the first article of impeachment.

What had begun with
a sexual indiscretion more than three years earlier and mushroomed into a full-scale
constitutional crisis was finally over.

This time, however,
there was no triumph, no crowing about the 'Comeback Kid'. Bill Clinton knew that this time, both he and the country
had paid a heavy price.

HARRIS: Bill Clinton
in his second inaugural address said it was his ambition
during the second term to be, quoting scripture,
a "repairer of the breach". That ambition was not realised
in his second term and it effectively died
in 1998, the year of scandal.

MYERS: The fact that
the president was impeached will always be part of his story,
part of his legacy.

It consumed a tremendous
amount of energy, it undercut his standing, and, I think, limited his ability to accomplish anything
outside of surviving for almost two years. And, you know, that's tragic.

Clinton created
many of his own problems, but his enemies
exaggerated, enhanced, mythologised, lied, were utterly hypocritical
in their attacks on him. You know, to the extent
that I believe that every human being is
responsible for their own lives, he holds the responsibility for it.

To the extent
that context shapes a life, his enemies have a lot
to answer for.

Clinton had survived, but the impeachment ordeal
seemed to have sapped much of his drive and ambition.

BAKER: President Clinton has
more than 700 days left in office after he is acquitted by the Senate, and he promises to use every single
one of them to its fullest. But the constraints were enormous
at that point. The big aspirations were gone. The chances of reinventing Social
Security or reinventing Medicare just proved too elusive. He had a Congress which had just
literally put him on trial and it was not willing to do
a lot of business with him.

In 2000, Clinton came
tantalisingly close to the great historical achievement
for which he had yearned, but a peace agreement
between Israel and the Palestinians broke down in the eleventh hour.

The same year,
after decades of budget deficits, the federal budget had a surplus
of nearly $240 billion, an accomplishment for which
Clinton was given much credit.

It was only as her husband
was preparing to leave the stage that Hillary finally stepped
front and centre, ready at last to take her star turn. BAKER: The day the Senate votes to acquit President Clinton
on impeachment charges, Hillary Clinton is meeting
in the White House Residence with Harold Ickes to plot a campaign for
the very same United States Senate. Literally the end of his crisis
is the birth of her new phase.

SHEEHY: She said,
"I want to be independent. "I want to be judged
on my own merits." And she finally released herself from, you know,
the shadow of Bill Clinton over her and began making her own decisions.

He then came to her support, and there was nobody more of
a champion for her Senate race than Bill Clinton. He was behind her all the way. So, even if I didn't know her
better than anybody in this room, I'd be for her. (CROWD CHEERS) That November, as Vice-President Al Gore lost
the closest presidential election in American history, Hillary Clinton easily won
the Senate seat in New York. I am profoundly grateful
to all of you for giving me the chance
to serve you.

In his final round
of goodbye speeches, Bill Clinton even bid farewell
to the Washington press corps. You know, I read
in the history books how other presidents say the
White House is like a penitentiary and that every motive they have
is suspect. Even George Washington complained
he was treated like a common thief. And they all say
they can't wait to get away. I don't know what the heck
they're talking about. (LAUGHTER) I've had a wonderful time. It's been an honour to serve
and fun to laugh. I only wish that we'd even laughed
more these last eight years. Because power is not
the most important thing in life and it only counts for
what you use it.

MAN: Listen, this guy
loved being president. He even loved being president
when it was tough. And a lot of times I would say,
"How does he smile? "How does he keep laughing? "How does he keep going
through this?" But it was because he got
the energy back from the people.

Whatever you think of the man, he wanted to do the right thing for the people of his county,
his state, his country, and that never changed about him.

Clinton departed the White House
for the last time on Saturday, January 20, 2001.

In the end, he left
much as he had come - a man loved by his friends
and loathed by his enemies, a politician who had achieved
a great deal yet left behind a curious sense
of unfulfilled promise.

HARRIS: I believe he is
an argument without end - that there will be people
discussing and debating the significance of Bill Clinton
for a long time.

MAN: Bill Clinton will be remembered as one of our best presidents
in the 20th century who accomplished an enormous amount, and he will be remembered because
of his personal recklessness. And that is tragic, because
so much more could have happened.

REICH: Did Bill Clinton
help the country and was the country better
for having him as president? I think, unquestionably, yes. But are there elements of tragedy
here as well? Huge elements of tragedy in terms
of failures and opportunities lost and risks made
that didn't have to be made? Undoubtedly.

MAN: I know a lot of people think that Clinton's presidency
was a wasted opportunity. But he came to office in 1992
and left a stronger country in 2000. I don't know
if you can say of a president who served us well
and improved our material good that it was a wasted opportunity. And it was sure
a lot of fun to watch.

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