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Jones rejected settlement, letters say

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Her lawyers told Paula Jones that $700,000 from President Clinton's insurers and a vague apology would be "a complete victory" in her sexual harassment lawsuit.

But she shot the offer down with more demands before dumping her legal team, just-released documents show.According to a pair of letters written last summer and released Wednesday, attorneys Joseph Cammarata and Gilbert K. Davis warned Jones that her new demands were changing her goals from protecting her reputation to proving "Clinton is a bad person."

"The money and language fully redeems your reputation for character and truthfulness," they wrote to her last Aug. 19. "Failure to accept this settlement will, in effect, `snatch defeat from the jaws of victory.' "

While she would have received $200,000 from the proposed settlement, after legal bills, rejecting it would likely mean she would not get anything, they warned.