<B>FBI allowed to keep file on New York man's lawful activities<P> <B>By LAURIE ASSEO<P> <B>Associated Press Writer<P> WASHINGTON (AP) - The Supreme Court today refused to order the FBI to purge its file on lawful activities by the former head of a charitable foundation. The court, without comment, turned away arguments that said the FBI is violating a federal privacy law by keeping a file about the man's years-ago meetings with foreign leaders and political dissidents. Lance E. Lindblom of Larchmont, N.Y., was president of the Chicago-based J. Roderick MacArthur Foundation from 1984 to 1994. The foundation supports civil liberties activities, and Lindblom's duties included meeting with foreign leaders and political dissidents. After filing a request with the FBI, Lindblom learned in 1989 that the bureau kept records that described his meetings with such people. Lindblom and the foundation sued the FBI in federal court in the District of Columbia, saying the 1974 federal Privacy Act required the bureau to purge those files. The law limits federal agencies' authority to keep records describing how people exercise their rights under the Constitution's First Amendment, including rights of free speech and association. Under the Privacy Act, agencies can keep such records only if it is authorized by another law or "within the scope of an authorized law enforcement activity." A federal judge ruled for the FBI, saying the files were compiled for legitimate law enforcement purposes. The investigations were not aimed at Lindblom or the foundation, but were aimed at the people with whom they met, the judge said. A federal appeals court agreed last December. Federal agencies can keep records they lawfully collected, the appeals court said, adding that a requirement to purge old files would be too burdensome. In the appeal acted on today, Lindblom's lawyers said agencies must separately justify the need to keep old records, even if they originally were lawfully collected. Keeping Lindblom's file increases the risk that it will be used illegally, his lawyers said, noting the 1996 controversy after it was found that the FBI files of 700 former White House employees had been sent to the White House. Justice Department lawyers said a requirement to purge old files would cause problems if the information later was needed for a new or reopened investigation. The case is Lindblom vs. FBI, 97-82. APTV-10-14-97 1020EDT