Bill Clinton clearing way for wife's Cabinet position

WASHINGTON — Former President Clinton has agreed to all of the conditions sought by President-elect Obama's transition team to eliminate potential conflicts of interest if Hillary Rodham Clinton becomes secretary of state, people close to the Clintons said Wednesday.

Clinton accepted several restrictions on his business and philanthropic activities to remove any obstacle to his wife's nomination if the Cabinet job is formally offered and accepted, said the associates, who insisted that they not be identified. "I'll do whatever they want," Clinton said at a public appearance Wednesday.

The discussions came as Obama moved forward in putting together the team he will bring to office in January. He has decided to nominate Tom Daschle, the former Senate Democratic leader, as secretary of health and human services, Obama's advisers said Wednesday. Daschle has accepted the offer, which would make him a point man in Obama's plan to expand health-care coverage.

Although Daschle's nomination will not be officially announced for a while, the transition team made public several expected White House appointments Wednesday. Among them were David Axelrod, who was Obama's chief campaign strategist and now will serve as senior adviser to the president, and Gregory Craig, who was President Clinton's impeachment defense lawyer and now will serve as White House counsel.

In addition, Lisa Brown, former counsel to Vice President Al Gore, will serve as staff secretary, and Christopher Lu, a top aide in Obama's Senate office, will be Cabinet secretary.

As for Sen. Clinton's situation, even if the guidelines for the former president's future activities are on the verge of being resolved, Obama and the senator need to decide if they can put the rancor of their long and bitter primary battle behind them.

Continuing tensions could foreshadow a complex relationship should Sen. Clinton become secretary of state. By putting her in the Cabinet, Obama could remove a potential thorn in the Senate on issues such as health care and a potential rival for renomination in 2012 if his term proves rocky. But he could also face a rival power center within his own administration with her on his team.

In the past few days, the former president has agreed to disclose some major donors to his charitable foundation and to subject his future foundation activities and paid speeches to review by the White House Counsel's Office and the State Department ethics office, according to Democrats close to the negotiations.

He would step back from day-to-day responsibility involving the William J. Clinton Foundation and alert the State Department to speaking plans and new income sources.