Sen. Baucus nominated girlfriend for U.S. attorney post...

'Awarded position based solely on her merit'...

WASHINGTON (AP) - Senate Finance Committee Chairman Max Baucus defended recommending his girlfriend for appointment as Montana's U.S. attorney, saying Saturday that his one-time staff member and the former state prosecutor is "highly qualified" but eventually withdrew her nomination.

Baucus said that he began dating former state office director Melodee Hanes after they were both separated from their spouses. The Montana Democrat said they did not have an affair, but began dating while she worked for him.

Republican National Committee Chairman Michael Steele called Saturday for a Senate Ethics Committee investigation of Baucus' actions. Steele said the panel should determine "why Senator Baucus put his personal needs above those of the people of Montana."