LITTLE ROCK, Ark. - Then-Gov. Bill Clinton attended a meeting at which one of his Whitewater partners discussed work on a land development that later was completed by illegally using money from a $300,000 loan, a banker testified yesterday.

In his third day on the stand, David Hale said President Clinton, then the Arkansas governor, was present with Hale and Clinton's Whitewater partner James McDougal in early 1986 when McDougal discussed developing land south of Little Rock. The meeting was in McDougal's office in a trailer at one of McDougal's land developments near Little Rock, Hale said.

Hale also testified that during the meeting the three talked about a $150,000 Small Business Administration loan which, at McDougal's request, eventually grew to the amount of $300,000.

But Hale's testimony did not indicate whether there was any discussion of using any of the federal loan for the land development - a use that would be illegal.