WASHINGTON (AP) -- A $1.3 million study on homosexuals in the military, commissioned by the Pentagon last spring, supported President Clinton's view that acknowledged gays should be allowed to serve. But its conclusion was rejected. The 407-page study by Rand Corp. was made public Thursday. Its central theme -- that lifting the ban on gays could be made to work without hurting the nation's defenses -- had been leaked weeks ago, but the Pentagon had refused to discuss it. Perhaps the most remarkable aspect of the report is how neatly its conclusions fit Clinton's view that sexual orientation should not be germane to the question of who is fit to serve in the military. And yet Clinton's gay policy was based on a separate study by senior officers who oppose letting gays in the military. A summary of the officers' report also was made public Thursday. Faced with vigorous opposition from the military and some lawmakers, Clinton in January abandoned his campaign pledge to lift the ban outright and instead announced the policy that makes few changes to the existing prohibition. Clinton's policy ends the practice of questioning recruits and service members about their sexual orientation, and states that homosexual orientation is not a bar to service unless one makes it known by his or her conduct. In addition, commanders and agencies cannot begin investigations whose sole purpose is to determine an individual's sexual orientation. However, the military will continue to discharge service members who engage in homosexual acts, state that they are homosexual or bisexual or marry or attempt to marry someone of the same sex. In a letter accompanying copies of the Rand report, which were delivered to members of Congress on Thursday, Aspin noted that the Clinton policy was derived from the officers' recommendations but asserted that Rand's work was not ignored. "What Rand's systematic research and analysis showed was that a policy change could be successfully implemented," Aspin wrote. The policy that Aspin eventually recommended to Clinton and that the president adopted on July 19, however, represented only a marginal change from the existing gay policy. Rand, based in Santa Monica, Calif., is a major research group with close ties to the Defense Department. The other study, conducted by a team of admirals and generals, concluded that while sexual orientation is a private matter, openly declared gays should be barred from the military. "All homosexuality is incompatible with military service," the officers wrote. "The effect on combat effectiveness is not limited to known homosexuals." The Rand report, by contrast, concluded that while concerns about the possible effects of permitting homosexuals to serve are not groundless, "the problems do not appear insurmountable, and there is ample reason to believe that heterosexual and homosexual military personnel can work together effectively." GAY IN MILITARY? RAND SAYS YES, PENTAGON NO By Jim Adams WASHINGTON (Reuter) - The Pentagon Thursday released a pair of studies done to help President Clinton develop his policy on gays in the military but they sharply disagreed on whether known homosexuals should be permitted to serve. Both studies -- one by a military panel, the other by a private firm -- recommended basically what Clinton approved in July: gay men and lesbians can no longer be banned from military service solely because they are homosexual; they can be banned only for homosexual conduct. The private Rand research company's report did not suggest, as some members of Congress had said, that Clinton should lift the ban against gays entirely. Instead, Rand, which has close ties to the military, suggested heterosexual soldiers be required to "tolerate the presence of known homosexuals" while gays and lesbians should not flaunt their sexual orientation. But the Pentagon military group that recommended the new policy to Clinton said even gay men and lesbians who remain in the closet could hurt military effectiveness because their sexual behavior could constitute a high-risk for AIDS, and if they were arrested by police they would immediately be forced out of the closet. Clinton's "don't ask, don't tell" policy does not specify whether declared homosexuals would be allowed, but does say anyone who says he or she is gay will be presumed to have an active sex life -- which is banned for gay people -- unless they can prove otherwise. Clinton said at a press conference that meant it would be possible for someone to say he or she was gay and stay in the military, but Defense Secretary Les Aspin and other defense officials said at congressional hearings that it would be very difficult for declared gays to stay in the military. Aspin said Thursday in a letter to Congress accompanying the reports that a Rand report highlight to him was its finding that "there is ample reason to believe that heterosexual and homosexual military personnel can work together effectively." Another, Aspin said, was its conclusion that "there is no reason to expect a reduction in enlistments following a change in the policy regarding service by homosexuals." The Rand report said gays and lesbians have not declared their sexual orientation in foreign countries where they are allowed to serve and few have done so in police and fire departments in the United States, some of which actively recruit from the gay community. It suggested that harassment of gay men and lesbians, as well as displays of affection and discussion of sexual practices by either hetero- or homosexuals, not be tolerated. "While heterosexuals would be asked to tolerate the presence of known homosexuals, all personnel, including acknowledged homosexuals, must understand that the military environment is no place to advertise one's sexual orientation," it said. David Smith, spokesman for the National Gay and Lesbian Task Force, said the report "should be embarrassing to the president. "It was deliberately supressed until after the president's policy was put forth," Smith said. "It should have been part of the debate."