A College-commissioned probe investigating a complaint by the Society of Arab Students that a Harvard Foundation student officer mishandled its grant application exonerated the student Tuesday, clearing him of charges of racial bias.

The committee also recommended that the Foundation's Student Advisory Committee, which doles out $20,000 in grants to minority groups each semester, change its procedures to allow student groups to represent themselves.

The investigators said they found no evidence that Kenneth A. Katz '93 had any racial biases when he presented the Society of Arab Students' (SAS) grant application to the Foundation's Student Advisory Committee last October. SAS officers charged that Katz, an editor of The Crimson, had demonstrated racial biases in his editorial columns.

The investigating committee, led by Dean of Students Archie C. Epps III, criticized SAS for making accusations of racial bias based on "alleged past publications and membership in unnamed organizations," according to the committee's statement released yesterday to The Crimson.

"We found no other issue more injurious to good race relations than these rumors," the statement read. "Such rumors created a climate of suspicion that led in substantial part to the allegations against him."

An investigation into the presentation of the grant began last November when then-SAS President Laila F. Sahyoun '94 alleged that Katz withheld information from the committee.

Katz's misrepresentation of SAS's proposal, Sahyoun said, resulted in the Foundation's granting SAS only $60. Last spring the society received $700 for similar proposals, Sahyoun said.

Katz maintains that he presented all the information he was given and that SAS received a lower grant this fall because this year's committee adhered more strictly to the rules for the grants.

"I think had last year's Student Advisory Committee adhered to the guidelines they would have done the same thing we did this year," Katz said.

Sahyoun said she was displeased that the commit- tee had made no statement indicating that SAS's grant would be changed.

Epps, however, said that the committee examined Katz's conduct, not the grant proposal.

"Those were two separate matters, but I don't think the issue of additional money will be re-opened," Epps said.

In a letter to The Crimson, Katz wrote he was "pleased" by the committee's decision, and that SAS's accusations only add to racial tensions on campus.

"It paints me to have to defend myself against accusations of racism. I am not racist or anti-Arab," Katz wrote. "False and unsubstantiated charges of racism--like those with which Ms. Sahyoun and [current SAS President] Ms. [Haneen M.] Rabie attacked me--are a source of racial and ethnic tension on this campus, not a solution to it."

Sahyoun said she was not surprised by the committee's statement since the committee had indicated its opinions at past meetings.

"The letter didn't say anything new," she said. "I pretty much knew what was going to happen. I wasn't surprised at all."

The Foundation recently expanded the permanent membership on its Student Advisory Committee, adding several more minority representatives including one from SAS.

The only part of the committee's statement which surprised Sayhoun was its assertion that her claims had added to a "climate of suspicion."

"They turned the issue around," Sayhoun said. "They made it seem as though I were at fault because they claim I spread rumors or caused commotion. I still feel I had a strong basis."

Cabot Professor of the Natural Sciences John E. Dowling '57, one of the investigators, said that the committee had developed ideas about what the decision would be from the beginning of the probe.

"We had, from the beginning formed a number of opinions but we wanted to talk to people on both sides to see if there were reasons to modify our opinions," Dowling said.

Sahyoun also said that the administration had dragged its feet in issuing a decision.

In the statement, Epps accepted "full responsibility for delaying consideration of this matter beyond Reading and Examination periods."

Epps said that the time it took to come to and issue a decision was not "a relevant issue. What was important was that we should have been careful to make a sound decision," he said.

The statement was further delayed because Katz had to consent to its release before it could be issued, Epps said.

Sahyoun said that the only further action she will take on the matter will be inquire whether SAS's grant will be augmented.

The following is the text of Mr. Katz's letter:

I am pleased that Dean Epps Special Committee has concluded that I acted properly, and without racial bias, in presenting the Society of Arab Students (SAS) grant application to the Harvard Foundation Student Advisory Committee (SAC) last semester.

The grant application--submitted by Laila Sahyoun, then-president of the SAS--was the victim of its own poor preparation. Perhaps it was also the victim of the inconsistent application of grant guidelines by last year's SAC, of which I was not a member. But it was not the victim of any racial bias or mishandling on my part.

If my presentation of the grant application had indeed been biased or otherwise unfair, the SAC undoubtedly would have reversed its decision on the grant when one of the SAC co-chairs represented the grant application before the full SAC in an appeal in November. But at that time the full SAC voted to reaffirm its earlier decision on the grant. Thus, on two separate occasions, following the grants guidelines, with different SAC members representing the grant each time, the full SAC--not just me--decided to fund only partially the grant application.

I am also pleased that the Special Committee has condemned the way in which Ms. Sahyoun and Haneen Rabie '95, the current SAS president, publicly accused me of racism in letters and statements to The Crimson.

It pains me to have to defend myself against accusations of racism. I am not racist or anti-Arab. Rather, I am deeply committed to working for better race relations and intercultural harmony at Harvard. It was this commitment that prompted me to run for election to the SAS last year.

I was also offended by the manner in which the charges were made. Why did neither Ms. Sahyoun nor Ms. Rabie even once attempt to speak with me before publicly airing their thinly-veiled charge of racism? Why did they make no effort to get my side of the story? Why, instead, did they rely wholly on hearsay in making their very serious, very wrong accusations.

Finally, I am pleased that the Special Committee has recommended a review of the SAC's grant guidelines. While I property adhered to the guidelines, I agree that the process can and should be made fairer for the many minority groups that currently lack representation on the SAC. Indeed, I served on the SAC's grants reform committee that earlier this year proposed allowing student groups to represent their own grants. Unfortunately, this proposal was defeated by the full SAC vote in January.

I look forward to continuing to work on the SAC for the betterment of race and intercultural relations at Harvard. False and unsubstantiated charges of racism--like those with which Ms. Sahyoun and Ms. Rabie attacked me--are a source or racial and ethnic tension on this campus, not the solution to it