Bush Denies Congress Access to Aides Bush Invokes Executive Privilege to Deny Congress Testimony From Former White House Aides By LAURIE KELLMAN The Associated Press

WASHINGTON

President Bush invoked executive privilege Monday to deny requests by Congress for testimony from two former aides about the firings of federal prosecutors.

The White House, however, did offer again to make former counsel Harriet Miers and one-time political director Sara Taylor available for private, off-the-record interviews.

In a letter to the heads of the House and Senate Judiciary panels, White House counsel Fred Fielding insisted that Bush was acting in good faith and refused lawmakers’ demand that the president explain the basis for invoking the privilege.

“You may be assured that the president’s assertion here comports with prior practices in similar contexts, and that it has been appropriately documented,” the letter said.

Retorted House Judiciary Committee Chairman John Conyers:

“Contrary what the White House may believe, it is the Congress and the courts that will decide whether an invocation of executive privilege is valid, not the White House unilaterally,” the Michigan Democrat said in a statement.

The exchange Monday was the latest step in a slow-motion legal waltz between the White House and lawmakers toward eventual contempt-of-Congress citations. If neither side yields, the matter could land in federal court.

In his letter regarding subpoenas the Judiciary panels issued, Fielding said, “The president feels compelled to assert executive privilege with respect to the testimony sought from Sara M. Taylor and Harriet E. Miers.”

Fielding was responding to a 10 a.m. EDT deadline set by the Democratic chairmen, Sen. Patrick Leahy of Vermont and Rep. John Conyers of Michigan, for the White House to explain it’s privilege claim, prove that the president personally invoked it and provide logs of which documents were being withheld.

As expected, Fielding refused to comply. He said he was acting at Bush’s direction, and he complained that the committees had decided to enforce the subpoenas whether or not the White House complied.

“The committees have already prejudged the question, regardless of the production of any privilege log,” Fielding wrote. “In such circumstances, we will not be undertaking such a project, even as a further accommodation.”

The privilege claim on testimony by former aides won’t necessarily prevent them from appearing under oath this week, as scheduled.

Leahy said that Taylor, Bush’s former political director, may testify as scheduled before the Senate panel on Wednesday. The House Judiciary Committee scheduled Miers’ testimony for Thursday, but it was unclear whether she would appear, according to congressional aides speaking on condition of anonymity because negotiations were under way.

The probe into the U.S. attorney firings was only one of several Democratic-led investigations of the White House and its use of executive power spanning the war in Iraq, Bush’s secretive wiretapping program and his commutation last week of I. Lewis “Scooter” Libby’s prison sentence.

Fielding’s letter welcomed lawmakers back to town with a clear indication that relations between Congress and the White House had soured during the break.

Bush’s counsel cloaked his tough rejoinder to the Democratic committee chairmen in gentlemanly language, but his message was unequivocal: the White House won’t back down, and believes the congressional legal argument to be far weaker than its own and its attitude less appealing.

Fielding dismissed the chairmen’s attempt to “direct” the White House to provide the legal underpinning of Bush’s executive privilege claims and a detailed listing of the documents he is withholding. He said the White House already has provided its legal argument and so does not need to do so again and won’t.

“We are aware of no authority by which a congressional committee may `direct’ the Executive to undertake the task of creating and providing an extensive description of every document covered by an assertion of Executive Privilege,” he wrote. Fielding suggested that asserting executive privilege on the testimony comes as a result of this impasse and the lack of good faith it demonstrates on the part of Congress.

More broadly, Fielding suggested that the congressional inquiry into the entire matter of the U.S. attorneys’ dismissals has no constitutional basis, in large part because the president has sole authority to hire and fire federal prosecutors.

“Although we each speak on behalf of different branches of government, and perhaps for that reason cannot help having different perspectives on the matter, it is hoped you will agree, upon further reflection, that it is incorrect to say that the President’s assertion of executive privilege was performed without `good faith,’ ” Fielding’s letter said.

(AP)Sony Corp. slashed the price of its current PlayStation 3 by $100, or 16.7 percent, and introduced a high-capacity model in an effort to spur sales of the struggling video game console.

Starting Monday, the current 60 gigabyte model will cost $499, down from $599.

The Japanese electronics maker also said it is introducing a new version of the PlayStation 3 with a bigger hard drive for storing downloaded content such as video games and high-definition movies.

The new PS3 increases the system’s storage capacity to 80 gigabytes from 60 gigabytes and also includes a retail copy of the online racing title “MotorStorm,” a company spokesman said. It will be priced at $599.

The larger capacity machine won’t be available in the United States and Canada until August.

It plays into the company’s upcoming strategy of eventually offering downloaded high-definition movies, video games, movie trailers and demos, Sony spokesman David Karraker said.

Karraker said further details on high-def movies for download would be released at a later date.

The announcement comes two days before the E3 Media & Business Summit in Santa Monica, Calif., where dozens of industry heavyweights including Sony rivals Microsoft Corp. and Nintendo Co. are expected to show off their latest games and related products.

«marketwatch.cbsnews.com» has said it sold 3.6 million PS3s in the fiscal year ending March 31 and expects to sell another 11 million in the current fiscal year. Microsoft said in its most recent quarterly earnings report filed in April that it had shipped 11 million Xbox 360s.

«marketwatch.cbsnews.com» meanwhile, claims it has sold nearly 6 million Wiis worldwide as of March 31, and more than 40 million Nintendo DS handhelds. The company has predicted it will sell another 14 million Wiis and 22 million additional DS systems by the end of the current fiscal year.

The Wii and PS3 were released within days of each other late last year. «marketwatch.cbsnews.com» had a head start in the current generation of consoles, having launched its Xbox 360 in 2005. Last week, the software company announced an extension of the warranty due to the high number of systems suffering from hardware failure, also called the “red ring of death.”

In April, Microsoft began selling a version of its Xbox 360 with a 120-gigabyte hard drive and a souped-up, high-definition video connection. Called Xbox 360 Elite, the black-colored system sells for $479.99.

Xbox gamers who already own the $399.99 20-gigabyte model can buy a snap-on 120-gigabyte hard drive for $179.99.

Karraker said Sony would use the E3 show to focus on two areas: ways to increase the number of consumers who own PS3s and other products such as the PlayStation Portable handheld system, and expanding the system’s library of available games.

He said Sony would be releasing 100 new video games during the current fiscal year, including 15 titles that are exclusive to the PS3 such as the hack-and-slash action title “Heavenly Sword.”

OTTAWA—Menu Foods Income Fund insisted Thursday that it will survive the fallout from a huge recall of contaminated pet food that is expected to cost at least C$45 million ($42 million), as more customers cancel orders and lawsuits mount.

Executives said they were confident that a bigger line of credit will help see the company through the recall, expanded several times and dubbed one of the largest in North American history.

Menu Foods has recalled at least 60 million packages of pet food after reports of 14 animal deaths. It said the foods contained contaminated imported from .

“Menu’s been in business and at various sizes and at different scales for 35 years and the intent will be that we will continue to be around,” Chief Executive Paul Henderson said on a conference call to discuss first-quarter results.

He pointed to a recently-increased bank facility, to US$50 million from US$30 million. The company also has a facility for US$85 million in senior secured notes.

Menu Foods also expects to once again begin shipping many of the recalled pet food brands in the second quarter and into the third quarter.

“All of those things essentially will see us, in my opinion, through the recall,” Henderson said.

Cormark Securities analyst Aleem Israel agreed, saying Menu Foods has survived hard times in the past. He cited problems in 2005 when rising costs led the company to breach its bank covenants.

“He’s (Henderson) been in the situation where his back was against the wall,” he said from Toronto. “They were very good at managing their way out of that.”

But it won’t be easy for Menu Foods to find its footing again.

The C$45 million recall cost excludes the impact of lower sales and any lawsuits exceeding the company’s insurance. Menu Foods now faces nearly 90 lawsuits in North America, Henderson said.

The company also said it expects to borrow more money because of the recall at higher interest rates under an amended credit agreement.

“Both of these changes are expected to increase the fund’s financial expenses going forward,” the company said in a statement. Company executives were unable Thursday to estimate the impact of higher interest costs.

In its first-quarter, Menu Foods posted a net loss of C$17.51 million, or 91.8 Canadian cents a unit, compared to profit of C$1.3 million, or 73 Canadian cents a unit, in the prior-year period. Sales slumped to C$64.5 million, from C$93.9 million.

No distributions were declared during the quarter and the board will not consider resuming them “for the foreseeable future”.

The company said it expects second-quarter sales and operating results will be “adversely affected” by the recall.

Israel said he is not concerned by small customers who have canceled orders because the biggest customers need Menu Foods’ capacity.

Menu Food units dipped 12 Canadian cents to C$4.01 on the Toronto Stock Exchange Thursday.