Judge Matz was stunned by Zeidenberg's announcement, and hinted that the Bush prosecutor was throwing away his case.

"You couldn't keep [the tape] out," an incredulous Matz protested. "I wouldn't let you keep it out."

But eventually the Clinton appointed judge relented, saying he said he would allow Zeidenberg to file a "real pithy" argument in lieu of introducing the Rosen tape.

The Bush prosecutor went so far as to trash the Rosen audiotape, arguing that it was "hearsay," and requesting that Judge Matz bar even the defense from referencing it.

The explosive recording, made by Kennedy in-law Raymond Reggie during a September 2002 meeting with Rosen at a Chicago steakhouse, substantiated allegations by Rosen's chief accusers, Hollywood mogul Peter Paul and fund-raiser Aaron Tonken, that Rosen deliberately understated the costs of an August 2000 gala fund-raiser for Mrs. Clinton.

According to excerpts of the tape mentioned in an FBI affidavit, Rosen acknowledged to Reggie that the concert portion of the event may have cost $1 million or more. Rosen later reported costs to federal regulators of $400,000.

The Reggie tape also reportedly contains bombshell comments by Rosen suggesting that a top Democratic donor supplied prostitutes to "Clinton loyalists" - and even an account suggesting that then-President Clinton wanted to get in on the action.

News that the Bush Justice Department has decided to deep-six its best evidence against Rosen not only improves his chances for acquittal - it dramatically lessens the pressure on him to implicate higher-ups in additional crimes.

The Bush administration has a long history of abandoning prosecutions against top Clinton figures. Just last month, Noel Hillman - head of the Justice Department's Public Integrity Section - declined to prosecute former national security adviser Sandy Berger for his admitted theft of top secret terrorism documents, some of which he destroyed.

Instead, Berger was allowed to plead guilty to a one-count misdemeanor of unauthorized removal of classified material. Hillman recommended that he serve no jail time, and instead pay a $10,000 fine.

Hillman's signature appears on Rosen's indictment.

In 2003, the Bush Justice Department dropped a compelling case against Mrs. Clinton, despite strong circumstantial evidence that she traded votes in the Hasidic enclave of New Square, N.Y., for presidential clemency that her husband later granted to four village leaders.

Though New York's Hasidic community overwhelmingly backed her opponent Rick Lazio in 2000, New Square voted for Hillary by a staggering margin of 1,400 to 12.

In 2002, the U.S. Attorney's Office for the Southern District of New York dropped an even more compelling case against former first brother Roger Clinton, who was accused of accepting bribes in exchange for presidential pardons.

In its first month in office, the Bush Justice Department struck a deal with Indonesian billionaire Mochtar Riady, who had funneled millions of dollars in illegal foreign donations into Clinton campaign coffers.

Riady was ordered to pay an $8 million fine and perform community service in his home city of Jakarta, where U.S. officials had no jurisdiction to enforce the sentence.

The Bush family has grown increasingly close to Mr. Clinton over the last year - especially since Bush 41 teamed up with Mr. Clinton in tsunami relief efforts. Recent reports claim that President Bush and his brother Jeb now refer to the former president as "Bubba" and "Bro."

In his opening statement in the Rosen trial, prosecutor Zeidenberg promised he would take great pains not to implicate Mrs. Clinton in any wrongdoing, telling the court:

"You will hear no evidence that Hillary Clinton was involved in any way shape or form. In fact, it's just the opposite. The evidence will show that David Rosen was trying to keep this evidence from the campaign."

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