Powell Confirms He Is Considering Leaving Office Early : Military: Joint Chiefs chairman denies recent differences with the Administration influenced his thinking. He cites family concerns.

Gen. Colin L. Powell, chairman of the Joint Chiefs of Staff, insisted Wednesday that he is neither unhappy nor disgruntled with Clinton Administration policies. But he confirmed that he is considering leaving the nation’s top military post before his term expires this fall.

“I might want to leave a month or so early in order to get my family resettled” for post-military life this summer, Powell said. But the general vehemently denied that his recent disagreements with the new Administration over whether gays should be allowed in the military and how deeply the defense budget should be cut had spurred his desire to go.

It was unclear whether word of Powell’s possible early departure was intended as a deliberate warning signal to the new White House, where--according to one source close to Powell--advisers “have their long knives out for him.”

One knowledgeable source said White House officials suggested to Powell last week that he should consider leaving office early if he could not support President Clinton’s policies.

Some critics have gone so far as to suggest that Powell’s open disagreements with the President amounted to insubordination--a suggestion that was said to have stung the general.

But Clinton’s aides immediately stepped forward to praise Powell, adding that Clinton hopes the respected general will stay until the end of his term on Sept. 30.

“He’s very much a part of our team and he has served the President very well, as we anticipated he would,” White House Chief of Staff Thomas (Mack) McLarty said in a television interview broadcast Tuesday.

But reports that Powell might retire early added another controversy to the new Administration’s early days. Moreover, they turned attention away from the efforts of officials to fix the domestic economy.

In addition, the flap over whether, when and why Powell would leave once more dramatized Clinton’s political vulnerabilities in his dealings with the military. Clinton’s avoidance of military service during the Vietnam War has made many Americans both in and out of uniform skeptical of the President’s understanding of military requirements.

Polls, meanwhile, have indicated a continued surge in respect for the military. Those views appeared to solidify after the weeklong political uproar over Clinton’s plan to lift the military’s prohibition against homosexuals. A USA Today opinion poll, conducted in the wake of the debate over gays in the military, found that the American public gave Powell a favorable rating of 71%, compared to 65% for Clinton.

As a result, the suggestion that Powell might quit in protest sent deep shudders through many parts of the Administration. As one of the nation’s most admired and visible generals since Gen. Douglas MacArthur, Powell’s advocacy of Clinton’s military initiatives would be viewed as vital political affirmation on Capitol Hill and elsewhere.

If Powell were to quit in a huff, however, his resignation could have a poisonous political effect on Clinton’s political fortunes.

A Powell supporter at the Pentagon suggested that, within the Administration, “there is resentment of his popularity, his influence and his ties to the previous Administration.”

“The fact that Powell is as popular as he is makes the (Clinton Administration’s) jealousies even sharper,” the source said. “There is no personality clash between Powell and the President or Powell and (Defense Secretary Les) Aspin. The problem is with advisers whispering in Clinton’s and Aspin’s ears. But if Powell feels isolated and undercut in his ability to make his case with the President and to lead the force, he’ll leave. And that would be very bad for this Administration.”

Powell on Wednesday said that he had a “fine relationship” with Clinton, adding that he was “delighted” to hear of Clinton’s support. “I will stay for whatever period of my term that the President wishes,” Powell said.

It was Powell himself who first laid the groundwork for a possible early retirement in a speech at the U.S. Naval Academy on Jan. 12.

Responding to a question about lifting the ban on homosexuals, Powell told the midshipmen: “If after . . . decisions are made, you still find it completely unacceptable and it strikes to the heart of your moral beliefs, then I think you have to resign.”

Powell made clear Wednesday, however, that he has not reached that point.

“The only conversations I’ve had with anyone suggested a slight departure early in the summer just to resettle my family,” Powell said. “It has nothing to do with any policy disagreements and, frankly, I’m looking forward to testifying on President Clinton’s budget.”

Powell added that he is “looking forward to helping President Clinton put in place an appropriate policy with respect to gays in the military. We had our opportunity to express our views to the President. He listened to them carefully. He’s given us our direction and we are now moving out. But I’m not . . . in a position of leaving because of any unhappiness or disagreement or disappointment.”

One knowledgeable source said that Powell had informally set a summer departure from office to ensure that he would complete a round of hearings on the Administration’s 1994 budget.