WASHINGTON, March 28 (IslamOnline.net & News Agencies) - Saying he doesn't want to be a distraction, Richard Perle, a leading advocate of the occupation of Iraq, has resigned as chairman of a top Pentagon advisory panel, but will remain a member, after a conflict-of-interest controversy, the Pentagon said on Thursday, March 27.

In his resignation letter to Defense Secretary Donald Rumsfeld, Perle stressed that he had not broken any ethics rules but said: "I have seen controversies like that before and I know that this one will inevitably distract from the urgent challenge in which you are now engaged."

The controversy involved his dealings with Global Crossing, a now bankrupt telecommunications firm that retained Perle as an intermediary to gain Pentagon approval to sell its assets in Asia, Agence France-Presse (AFP) said.

Rumsfeld in a statement praised Perle, 61, as a "man of integrity and honor" who has a "deep understanding of our national security process."

He added that he had accepted Perle's resignation as chairman of the Defense Policy Board but had asked him to stay on as a member.

'Not To Burden Rumsfeld'

In a resignation letter, Perle said he abided by the board's rules but wanted to step down as chairman so as not to burden Rumsfeld with a controversy at a time when the country was at war.

"With our nation at war and American troops risking their lives to protect our freedom and "liberate" Iraq, I am dismayed that your valuable time ... might be burdened by the controversy surrounding my presidency," the letter said.

Perle agreed to represent Global Crossing, a telecommunications company that had sought his help in getting the Pentagon's support for its proposed sale to a foreign firm controlled by investors from China and Singapore.

Under the arrangement, Perle was to be paid a $125,000 retainer and would earn another $600,000 if the deal is approved by a government review panel that includes Rumsfeld, the New York Times reported last Friday.

The Pentagon objected because ownership of the telecommunications company would pass to Hutchison Whampoa Ltd, a Hong Kong giant with ties to China and controlled by investors in China and Singapore.

Perle said in his letter of resignation, "I am advising Global Crossing that I will not accept any compensation that might result from their pending acquisition, and that any fee for past service would be donated to the families of American forces killed or injured in Iraq."

"As I cannot quickly or easily quell criticism of me based on errors of fact concerning my activities, the least I can do under these circumstances is to ask you to accept my resignation as chairman of the Defense Policy Board," Perle wrote.

Perle's move did not satisfy his critics.

The Washington Post quoted U.S. Representative John Conyers, ranking Democrat on the House Judiciary Committee, as calling it "a small step in the right direction," but said he would pursue his request that the Pentagon's inspector general investigate Perle's business dealings.

Charles Lewis, executive director of the Center for Public Integrity, a government watchdog group, told the Post the advisory board's ethical problems go beyond Perle.

At least 10 of the panel's 31 members are executives or lobbyists with private companies doing business with the Pentagon, according to a report to be released by the center on Friday.

Larry Noble, head of the Center for Responsive Politics, said Perle's involvement with Global Crossing was "not illegal, but it presents an appearance of a conflict" of interest.

Perle, 61, an assistant secretary of defense under president Ronald Reagan in the 1980s, was one of best known and most forceful proponents of military action against Iraq.

"Richard Perle has a deep understanding of our national security process and an abiding interest in preserving America's strength and freedom," Rumsfeld said. "He has been an excellent chairman and has led the Defense Policy Board during an important time in our history."

In an interview last night, Perle said his work involved getting company officials to agree to what he believed the Pentagon wanted for the sale to be approved, "not vice versa.", the Post said.