Harman, the top-ranking Democrat on the current committee, has been backed for the post by many moderate Democrats who cited her seniority and expertise on national security matters. But her prospects for the position apparently were doomed by reported strains in her relationship with Pelosi, although the disclosure from Hill staffers was the first definitive word on Harman's fate.

In recent weeks, the selection has been the talk of Washington insiders, who see it as an early signal of Pelosi's leadership style. But it has also been closely watched in the South Bay, where Harman is seen as a key advocate for the local defense industry.

The Los Angeles Area Chamber of Commerce issued a statement of support for Harman in its weekly newsletter Tuesday, and the Torrance Area Chamber of Commerce has also strongly backed her.

"It's very disappointing," said El Segundo Mayor Kelly McDowell. "It is baffling to me why personal or party considerations should stand in the way of the right decision. She deserves that chairmanship, big-time."

Harman declined Tuesday night to comment on the development, which followed an announcement by Pelosi that she had ruled out Rep. Alcee Hastings, D-Fla., for the chairmanship, which will pass into Democratic hands when the party assumes control of the newly elected Congress shortly after the first of the year. Hastings, an impeached federal judge, ranked immediately behind Harman in seniority on the committee, which deals with the most sensitive national security matters confronting the government.

South Bay leaders' hopes dashed

Rumors of a rift between Harman and Pelosi have been circulating for more than a year, so Tuesday's decision was not a surprise. Still, local leaders held out hope that Hastings' ethical troubles would prompt Pelosi to give Harman another look.

"I think it's a shame," said Redondo Beach City Councilman John Parsons. "I just hope it's not a demonstration of what (Pelosi's) speakership is going to be all about. But it sure looks like she's going to be as partisan as anybody."

Following an hourlong private meeting with Hastings in the Capitol, Pelosi issued a statement saying she had "advised" Hastings of her determination to bypass him for the chairmanship, which has been in Republican hands since the GOP seized control of Congress in 1995.

While Pelosi has sent consistent signals for much of the year that Harman would not receive the chairmanship, her decision on Hastings represents a turnaround, since she has said nothing until now to discourage speculation that the black lawmaker would assume the chairmanship in a Democratic House.

But that prospect proved troubling to many in the party because of Hastings' impeachment and subsequent dismissal from the bench in the late 1980s in a parliamentary move that stemmed from an unsuccessful bribery prosecution earlier in the decade. To Hastings' Democratic critics, awarding him the chairmanship could discredit the party's pledge to reform congressional ethics, damage its standing on national security issues and hand the GOP an issue for the congressional and presidential campaigns two years from now.

Hastings, who was acquitted in 1983 of charges that he exacted bribes for sparing two convicted racketeers from prison time, said in a statement after his meeting with Pelosi: "Sorry, haters, God is not finished with me yet."

Hastings acquitted in court

A member of the Congressional Black Caucus, Hastings has not hidden his resentment over attacks on his qualifications for the post, claiming that his impeachment by the House and subsequent removal from the bench by the Senate was fueled by politics and was at odds with his acquittal in court.

Pelosi said she made her decision following "extensive consultations" with Hastings, adding, "Alcee Hastings has always placed national security as his highest priority. He has served our country well, and I have full confidence that he will continue to do so." Pelosi's decision now focuses a spotlight on the third-ranking Democrat on the committee, Rep. Silvestre Reyes of Texas.

Pelosi also is believed to be considering several candidates not now serving on the committee including Reps. Norm Dicks of Washington, Anna Eshoo of Atherton and Rush Holt of New Jersey.

Rep. Sanford Bishop of Georgia, another Congressional Black Caucus member who has been on the panel, is also a possibility.

Daily Breeze staff writer Gene Maddaus contributed to this article.