  We develop a general Bethe Ansatz formalism for diagonalizing an integrable
model of a magnetic impurity of arbitrary spin coupled ferro- or
antiferromagnetically to a chain of interacting electrons. The method is
applied to an open chain, with the exact solution revealing a ``hidden'' Kondo
effect driven by forward electron scattering off the impurity. We argue that
the so-called ``operator reflection matrices'' proposed in recent Bethe Ansatz
studies of related models emulate only forward electron-impurity scattering
which may explain the absence of complete Kondo screening for certain values of
the impurity-electron coupling in these models.
