Bobby Ray Inman, a Texas businessman who held top national security jobs in both Republican and Democratic administrations, Tuesday abruptly withdrew as President Clinton's defense secretary. He cited "distortions of my record, my character and my reputation."

Inman's withdrawal - which caught Washington by surprise - was accepted by Clinton with regret.In a two-paragraph letter, Clinton told the retired Navy admiral: "While I understand the personal considerations that have led you to this decision, I am nevertheless saddened that our nation will be denied your service."

Inman announced his decision at an early afternoon news conference in Austin, Texas.

Clinton's choice of Inman to succeed Defense Secretary Les Aspin was widely praised but ran into difficulty when it was disclosed he had not paid federal taxes for household help.

Clinton announced his choice of Inman on Dec. 16, just a day after Aspin had abruptly resigned. At the time, Clinton praised the retired Navy admiral's intellect, integrity and leadership.

Inman said then that he neither sought nor wanted the job but accepted it out of "duty and country."

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Inman, 62, ended three decades of government service in 1982, when he resigned as deputy director of the Central Intelligence Agency. At the time he said he had lost his zest for bureaucratic infighting.

Inman, well-known and respected in Washington power circles, also headed the National Security Agency.

After retiring from the Navy in 1982, Inman worked with a number of high-tech and computer information firms in Texas.

Inman was expected to face questions about his private-sector dealings with the defense industry. In addition, Inman told the White House he had failed to pay Social Security taxes for a domestic helper. He paid about $7,000 in back taxes.

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