That is bullshit. I was paying attention when Reagan went to this putrid little redneck berg and listened to all the posturing statements of his handlers and such. It was plain and simple done precisely as I said: tpo let the rednecks and Kluxers know that Reagan would not be prosecuting crimes against racists.
Reagan, of course, did not make the decision to do this: that was done by his handlers. They were clearly sending a message. Reagan was simply this old actor they hired to play the role of president while the looted and plundered the S&L's, reduced the much of the middle class to paupers, and trashed Central America and sold weapons and made a killing. And Reagan did his job and it was the greatest acting of his career. He fooled most of the people most of the time.
And the proof was clearly in the pudding: nothing was, in fact, done to prosecute until Clinton was elected.