Commerce Secretary quits post to join Gore campaign

Commerce Secretary William Daley will resign his position to take over as chairman of Vice President Gore's presidential campaign, the White House confirmed Thursday afternoon.

Daley will replace the current campaign chairman, Tony Coehlo, who informed Gore Wednesday night that he would leave his post because of illness.

There was no immediate word on who would replace Daley-but one Commerce official said there has been talk that Deputy Commerce Secretary Robert Mallett may step in to fill the post on an acting basis during the relatively short time left in the administration. Daley, who has served as Commerce secretary since early 1997, will depart July 15.

President Clinton, who spoke with Daley by phone Thursday, termed the secretary's service "outstanding."

Daley-the younger brother of Chicago Mayor Richard M. Daley-is well liked by many in the business community. Before joining the Cabinet, he led the successful White House effort to secure congressional ratification of the North American Free Trade Agreement in 1993. And business leaders were heartened when Clinton tapped him to head up a similar effort to approve permanent normal trade relations for China this year. The bill was approved by the House last month.

Coelho-who served as a member of the House Democratic leadership before resigning from Congress in 1989-disclosed today that he is suffering from diverticulitis, an inflammation of the intestine wall. Although the condition is curable, Coehlo resigned on his physician's advice-since he will need to slow down his pace to deal with the illness, a campaign official said.

Coelho, who took over the Gore campaign 13 months ago, has not been free from controversy: He has been under criminal investigation for possible wrongdoing related to his tenure as U.S. commissioner general of the 1998 World Exposition in Portugal.

In a statement, Gore credited Coehlo for his role in helping him win this spring's primaries and to gain the endorsement of the AFL-CIO.

Although Daley has angered unions with his effort on behalf of normal trade relations for China, his ties to the business community and his moderate image will be indispensable to the Vice President during the general election, a former Gore aide said.

"Daley will help bring in the moderate vote that the Gore campaign needs to focus on," this source said.