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James 'Bud' Nance began his new duties as acting...

WASHINGTON -- James 'Bud' Nance began his new duties as acting national security adviser today, sending the president in California his daily morning intelligence-foreign affairs report.

Nance, a retired rear admiral, is replacing Richard Allen who has taken a leave of absence pending completion of an investigation of his receipt of $1,000 from Japanese journalists who interviewed Nancy Reagan.

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Nance, 60, has been serving as Allen's assistant on the national security team at the White House.

Allen has said he expects to return to his position when the investigation is over. Top White House aides are taking a 'wait and see' attitude. Meantime, Allen is going public to explain his case through interviews in the media.

White House counselor Edwin Meese said in an NBC interview he expects to be 'spending more time on a day-to-day basis' supervising national security and foreign policy in the White House 'rather than my oversight responsbility which I normally do'

Meese has been in charge of foreign policy since Reagan took office while chief of staff James Baker directs overall domestic policy matters. Nance graduated from the U.S. Naval Academy in 1944 and reached flag rank -- rear admiral -- in 1970.

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During his 35-year career, he served as a naval aviator, including being a jet test pilot, and was commander of the aircraft carrier U.S.S. Forrestal from 1968-70.

Nance began his career in planning and strategy in January 1970 under the Joint Chiefs of Staff, when he was named deputy director of the National Military Command Center and also chief of the Studies Analysis and Gaming Agency.

From 1972 to 1975 he served in various high positions in Europe. His last Navy duty was as assistant vice chief of naval operations at the Pentagon.

Nance retired from the Navy in 1979 and served as a policy adviser to Republican senators and also as a special consultant to the Senate Foreign Relations Committee during its deliberations on the SALT II treaty.

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