Here is the text of the Justice Department statement in the Allen case, followed by part of the report summarizing findings and conclusions:

THE STATEMENT

The attorney general has decided to close the Department of Justice inquiry centering on the discovery of an envelope containing 10 $100 bills in a safe in an office previously occupied by Richard V. Allen . . .

The FBI has interviewed all those who observed this envelope and its contents before its discovery as well as others possessing relevant information.

Thirty-six people were interviewed in the United States and Japan.

The department's criminal division has carefully reviewed the FBI report on this matter and concluded that it does not present any evidence that Mr. Allen violated federal criminal law.

The attorney general has further concluded that the special-prosecutor provisions of the Ethics in Government Act of 1978 are not triggered because as to this matter the department has not "received" or discovered any "specific information" that Mr. Allen violated federal criminal law.

The criminal division recommended that this matter be closed without appointment of a special prosecutor or report to the special prosecutor court. The deputy attorney general and the associate attorney general concurred in this recommendation.

Because of public interest in this matter and in order to answer some of the inquiries that the department has been unable to comment upon while this matter was under review, the attorney general authorized release of a report summarizing the criminal division's findings and conclusions.

During the course of this inquiry, two additional matters regarding Mr. Allen came to the department's attention: that Mr. Allen received watches from certain Japanese persons and that Mr. Allen's financial-disclosure form incorrectly stated the date he sold his interest in Potomac InternationalCorp.

Both of these matters came to the department's attention within the past 10 days. The applicability of the special-prosecutor provisions to those matters has not yet been determined. At this time, it would be premature and inappropriate to comment further.

THE REPORT

On Sept. 21, 1981, Edwin Meese III, . . . after having been told of this matter by White House employes, turned over copies of documents to the attorney general that were found in a safe in an office used by Allen in the Old Executive Office Building.

The documents consisted of a large outer envelope bearing Oriental characters; a smaller inner envelope with $10,000 written on it containing10 $100 bills; a piece of paper resembling a receipt with Oriental writing, including the figure $10,000; a business card of a Japanese Chamber of Commerce official and a faxgram dated Jan. 14, 1981, from that official to Allen.

No explanation or criminal allegation was furnished with the documents.

Summary of Investigation

Through interviews of 36 individuals in the United States and Japan and analysis of documentary evidence and forensic examinations, the investigation has yielded a complete, coherent and materially uncontradicted account of how the cash came to be found in the safe.

On Jan. 21, 1981, an envelope containing 10 $100 bills was intercepted by Allen when Japanese journalists attempted to hand it to Mrs. Reagan as an honorarium for a brief interview Mrs. Reagan had given to the journalists.

Allen gave the envelope to his secretary with instructions to turn it over to the appropriate officials.

The secretary placed the envelope in a safe and, through oversight, the cash was never officially reported or turned over to the appropriate officials.

The envelope was discovered on Sept. 15, 1981, in a safe in an office used by Allen in the Old Executive Office Building by individuals moving into the office.

Arranging the Interview

Sometime in December, 1980, Kamisaka Fuyoko, a writer for a Japanese women's magazine called "Shufu No Tomo" ( . . . hereinafter referred to as "The Magazine"), discussed with Mrs. Takase Chizuko in Japan the possibility of interviewing Nancy Reagan for The Magazine.

Mrs. Takase knew Allen through her husband's business and personal relationship with him, and she undertook to arrange such an interview. Mrs. Takase telephoned Allen and sought his help in arranging the interview.

Allen in a memorandum dated Dec. 8, 1980, wrote to Charles Tyson, then a scheduling official for the transition team, passing on Mrs. Takase's request and stating that he supported the request if time for a short interview could be arranged.

Allen recalls referring the request for an interview to Peter Hannaford, who at that time was in the process of taking over Allen's private consulting business, Potomac International Corp.

Mrs. Takase states that she called Allen on Jan. 15, 1981, prior to departing Japan and that Allen told her there was almost no possibility of obtaining an interview because of the Reagans' busy schedule.

Mrs. Takase, Mrs. Kamisaka and Kimoto Yoshiko, an editor of The Magazine, departed Tokyo for Washington . . . Jan. 15 in hopes of obtaining an interview with Mrs. Reagan.

Prior to departing, they discussed . . . an honorarium for Mrs. Reagan and decided on $1,000, which was withdrawn from The Magazine's accounting section in Japan. Mrs. Kimoto placed the $1,000 in a "ceremonial pouch" (the envelope) in Washington prior to the interview.

None of the women knew who wrote $10,000 on the envelope or the receipt form, but each stated that only $1,000 was put in the envelope. Accounting records obtained from The Magazine indicate that $1,000 was vouchered and dispensed for the honorarium.

The records also indicate that . . . $10,000 in cash was disbursed by the accounting office to the women to cover their expenses for the trip.

Upon arriving in Washington on Jan. 16, the three women went to Hannaford's office where they told Hannaford they were still seeking a response to their interview request.

Shortly thereafter, Hannaford called Mrs. Reagan's [staff director Peter McCoy] to request an interview of Mrs. Reagan for the three women. Hannaford did not contact Allen regarding the request.

Neither Hannaford nor Potomac International Corp. received any compensation from The Magazine for the assistance provided.

[McCoy] had only a faint recollection regarding the request but believes that he passed on Hannaford's request to Mrs. Reagan. Both Mr. and Mrs. Takase contacted Allen regarding the interview during the three-day period before the inauguration.

There is no indication that Allen provided any assistance during that time period.

On Jan. 20, Mrs. Takase received a phone call from the transition office informing her that an interview might be possible and that she should stand ready.

The following day . . . the women received a message from the transition office to come to the White House at 5:45 p.m.

The Interview

White House records and interviews indicate that Mrs. Reagan met with the three Japanese women for between five and 10 minutes at around 6 p.m. in the living quarters of the White House. In addition to Mrs. Reagan and Allen, at least five others were present.

In the course of the session, Mrs. Kamisaka presented Mrs. Reagan with a lacquer box that she had purchased in Japan. The box was immediately turned over by Mrs. Reagan to the government through appropriate White House channels.

Allen states that one of the women also attempted to present Mrs. Reagan with an envelope and some news clippings. Allen stepped in and took possession of the envelope and the clippings before they could be passed to Mrs. Reagan.

One of the women asked Allen to sign a receipt, but he refused "since he had not accepted it for himself." Allen stated that he did not return the envelope to the women because he thought it would offend them . . .

Storage of the Envelope

Allen states that after the interview he returned to his office where he opened the envelope while sitting at his desk. He recalled that it contained 10 $100 bills.

In his first interview, Allen said he recalled seeing the receipt, but in a later interview he said that he had not seen the receipt or a notation showing $10,000.

In any event, he immediately turned the envelope over to his secretary, advising her that the money should be turned over to the appropriate officials. His secretary placed the envelope in a four-drawer safe in her office located next to Allen's former office in the Old Executive Office Building.

Allen did not thereafter see the envelope.

Peter Hannaford, Secretary of the Navy John Lehman and Allen's wife have told the FBI that they recall Allen telling them sometime shortly after Jan. 21 about the incident, including the fact that he had intercepted an envelope containing cash that one of the women had attempted to hand to Mrs. Reagan.

Allen told the FBI that he should have made sure the envelope was turned over in the proper manner. However, due to the confusion of moving into the White House, his secretary did not get around to cataloguing the money and properly disposing of it.

Allen's secretary corroborated these facts and has told the FBI that she wanted to accept full responsibility for the money since it was her responsibility to dispose of it properly.

In February, Allen's secretary moved to new office space in the West Wing of the White House. At about the same time, another National Security Council secretary also moved out of the Old Executive Office Building office previously occupied by Allen's secretary.

In the process of moving, she checked the safe in the office to make sure it was empty. In one of the drawers she discovered a gift package and an envelope with Oriental writing. She opened the envelope and observed 10 $100 bills.

She immediately summoned yet another National Security Council secretary to the office and showed her the envelope. The second secretary remembers seeing 10 or 11 $100 bills.

The second secretary then notified Allen's secretary that they had found an envelope with $1,000 in the safe. She was instructed by Allen's secretary to notify an assistant to Allen, who was occupying Allen's former office.

She gave the envelope and packages to the assistant who says he received the envelope from her, opened it and counted 10 $100 bills. On his own initiative, the assistant put the envelope and packages in the two-drawer safe in Allen's former office "for safekeeping."

He left the National Security Council in March, 1981, with the envelope still in the safe and without notifying Allen of what he had done with the envelope. The envelope was next discovered in the two-drawer safe Sept. 15.

Discovery of the Envelope

On Sept. 15, 1981, three military officers on special detail to the White House were moving into Allen's former office in the Old Executive Office Building when they opened a two-drawer safe they had presumed was empty.

In the safe were several gift-wrapped packages, the receipt form and the envelope containing $1,000. The $1,000 was observed by two of the officers and a secretary.

The secretary turned the envelope and packages over to Barbara Diering, head of the Administrative Office of the National Security Council.

While in Diering's office, the items were inspected by Jerry Jennings, chief of security for the National Security Council staff. A business card of a Japanese Chamber of Commerce official was taped to one of the packages.

In an effort to locate any related documents which might bear on the envelope, Jennings found in another office a faxgram from the Japanese Chamber of Commerce official to Allen, requesting assistance in obtaining an audience with Ronald Reagan.

Jennings mistakenly believed that this faxgram was related to the envelope because of the proximity of the envelope containing the 10 $100 bills to the gift box which had the business card attacked.* (FOOTNOTE)

*. . .the gift boxes were opened and inspected by the FBI with Allen's permission. They contained gifts of nominal value. Allen does not remember precisely when he received the various gifts, but he says they will all be properly catalogued. None of the gifts has any relationship to the envelope or The Magazine interview.(END FOOT)

On Sept. 21, Jennings turned over to Meese the envelope, the faxgram and the business card. Later the same day, Meese turned over copies of the documents to the attorney general.

Analysis Facts

The facts uncovered in the investigation of this matter involving the envelope containing $1,000 are consistent on all material points. These points are:

* The $1,000 received by Allen was intended as an honorarium for Mrs. Reagan. Each of the three Japanese women and The Magazine records are consistent on that point. There is no evidence that the cash was intended for Allen.

* Allen did not intend to keep the money for his personal use. Both Allen and his secretary agree on Allen's expressed intent to turn the money over through proper channels.

The fact that Allen wholly parted with dominion and control over the money, left the envelope in a safe accessible to others and told several people, including the present Secretary of the Navy, about the cash, is inconsistent with an intent to keep the money for personal use. There is no evidence to indicate Allen intended to keep the money for himself.

* There was only $1,000 in the envelope turned over to Allen. Although the receipt and envelope contain the figure $10,000, all the evidence indicates that only $1,000 was given to Allen.

The three women and The Magazine's records indicate $1,000 was given and everyone who saw the envelope and money, a total of eight people, observed only $1,000 with one exception and that person recalled observing 10 or 11 $100 bills.