Remarks of
Deputy Director of Central Intelligence John E. McLaughlin
at the
Business Executives for National Security Annual Forum
23 June 2004
(as prepared for delivery)
Let me say at the outset that for American intelligence, Business Executives
for National Security (BENS) is a strong and very much appreciated source
of sound advicewhether the problem is finding better ways to track
terrorist finances, check the spread of weapons of mass destruction,
or reform our own systems of pay and promotion.�� You know the issues,
and you have worked hard to understand how the Intelligence Community
really works.� Thank you for all that you do.
When I saw the three questions I was asked to address this morning,
my first thought was to seek refuge in the economy of words for which
my profession is famous.� But these times and this audienceposing
questions like:� "Intel Reorganization:� Now? How much? How fast?require
answers more extensive than: Maybe, some, and fairly.
So let me give it a try.
It is of course no secret that our nation is in the midst of
another debate about intelligencewhat we need and how best to
get it.� The facts that led us herethe attacks of September 11th
and the war in Iraqare unique.� The debate itself is not.� We
have had several in our history.� Let me mention just two.
In 1975, around the time I joined CIA, one blue-ribbon panelthe
Rockefeller Commissionand two Congressional committeesChurch
and Pikewere investigating American intelligence.� Though that
period is remembered now for the damage done to our agencies, their
morale and capabilities, it also led to something positive: a foundation
for oversight that, at its best, has been constructive for the Intelligence
Community and connected us more closely to the American people.
In the 1990s, after the end of the Cold War, there were at least half
a dozen major efforts to chart the future of intelligence, ranging from
university groups and Congressional committees to the Aspin-Brown commission.�
Though that period is remembered now for shrinking budgets and vanishing
talent, it, too, had positives: Austerity forced the Intelligence Community
to work more closely across organizational lines.� And support to the
militarydaily, often tactical supportbecame a top priority
as the United States intervened in places like Bosnia and Kosovo.
As these brief examples show, national initiatives to change intelligence
tend to be a mix of pain and gain.� But there appears to be an appetite
for it again in both parties and among key segments of the public.�
Much of the impetus for it comes from the impression that perceived
shortcomings in our workbe it on counter-terrorism before 9/11
or Iraq's weapons of mass destruction programsreflect a broken
system and a Community in disarray.� That impression is false.
What shortcomings there wereand there were shortcomingswere
the result of specific, discrete problems that we understand and are
well on our way to addressing or have already addressed.� And the focus
on where we are thought to have gotten it wrong has obscuredeven
more than usualthe successes we have had in the fight against
terrorism and weapons of mass destruction.
This is an important point, because as we weigh changes in our community,
it is important to recall that we helped forge a global alliance against
al-Qa'ida and its sympathizers.� Played a pivotal role in flushing it
from its Afghan haven.� Have run to ground two-thirds of the leadership
al-QA'ida had in place on September 11th, and shattered a
host of cells and conspiraciesbefore and since.�
As a Community, we have run the sensitive operations and provided the
accurate analysis to expose proliferation activities in Iran and North
Korea.� And unraveled the WMD programs and networks of Libya and of
A.Q. Khan, one of the most dangerous proliferation threats the world
has faced.
Here's my point: Those are not the achievements of dysfunctional agencies.
The question to ask is not why an entire system broke downit
did not, and it has notbut rather why it did not perform in every
instance as well as it might have.� And whether we, in the Intelligence
Community, are learning from the experience.
But if there is to be changestructural changethe
goal we all share is to get it right, to improve intelligence.
But how?� There is no shortage of ideas, opinions, critiques, and proposals.�
I will not try to weigh them all herea task that would demand
more time than patience provides.���
Instead, I will share some personal thoughts on the issue.� And highlight
considerations that may help you form your own opinions on a topic vital
to the security of all Americans.���
As debate and discussion unfolds in the months ahead, you can expect
to hear more from me and other leaders of our Intelligence Community.�
You can expect our views to be refined even further over time.� And
you can expect us to be active participantsfrom start to finish.�������������
I don't have to tell this audience that before you can set about improving
something, you need to know its current condition and the demands that
are placed upon it.� You need to know its present shapeits strengths
and weaknesses.
Louis Sullivan, a brilliant architect and builder with the good sense
to be in Chicago after the Great Fire of 1871, said famously:
"form follows function."� It does in building, and it does with us,
too.� Let's talk about that.�
Despite what you may read or hear, despite the Cold War roots of most
of its agencies, this is not the same Community that helped fight and
win that conflict.� The world obviously has not been static, and neither
have we.� Our targets are differentand so is the mix of methods
and technologies we use to get at them.�
For example, when I started my career more than 30 years ago, the primary
interest was less in any given country, than in Soviet influence on
it.� So much of what we didin Asia, Africa, the Middle East, Latin
America, and Europewent through that prismas it had to.�
Life was more orderly back then.
That bipolar world has long since given way to a fragmented world.�
We still face a grave, overarching threat to the lives of Americans
and the physical security of our nation.� But the similarities end there.�
- Back then, we spoke of Soviet expansionism and the arms race.�
Now, we speak of the twin dangers of terrorism and proliferationboth
of which work swiftly, globally, unconventionally, in the shadows.�
��
- Back then, we tracked big thingsmotorized rifle regiments,
bombers, missiles, and submarines.� Now, we hunt for small thingsa
single individual in a city of millions or a lone piece of data in
the global communications network.�
- Back then, we worried more about governments and political partiesoften
hostile, but with interests that kept their actions within largely
predictable bounds.� Now, we have to pay attention to those things
and moreto towns, to regions, to religions, to tribes.� To the
stresses on a society that might make it a factory or refuge for terrorism.�
And the terrorist enemy is predictable only in his aim: to kill, wound,
and destroy.
- Back then, the secrets
we had to steal were shared by hundreds of individualsin ministries
and embassieswho formed a large pool for recruitment, with communications
networks that could be compromised.� Today, the secrets we most want
and need to acquire are shared by a handful or at most a couple dozen
people, who practice the tightest security and live outside the modern
government structures we were accustomed to penetrating.
- Back then, our analysts faced a shortage of data.� Now, they struggle
to keep up with itto sort and store it.� To find ways to share
it with a host of partners, many of whom have come to us since 9/11,
when the walls came down between foreign and domestic intelligence,
and between intelligence and law enforcement.
- Back then, we had to share information with key people in our own
government and with intelligence partners overseas.� Today, we must
share with all of them but also with the highway patrolman in the
American Midwest, whoalong with other local officialsmay
have the best opportunity to spot suspicious behavior pointing to
a terrorist threat.
- Back then, even during the first Gulf War, being able to talk to
people in a combat zone by secure telephone was an achievement.� Now,
we have instant messaging, secure video conferencing, communication
by lap top and much more with our ops officers and analysts throughout
Iraq.
The demands of these missions and the capabilities of information technology
make the Intelligence Community far more than the loose confederation
of agencies it once was.� We have actually drawn much closer together.�
In the old days, it might have been forward-thinking to have a representative
of the National Security Agency sitting at CIA or vice versa.� Change
NSA to FBI and you had something positively radical.�
No more.� We are way past that.� You know about our centersthe
Counterterrorist Center being the most famouswith officers from
different intelligence disciplines and agencies working side-by-side.�
And the Terrorist Threat Integration Center, which has built new relationships
among analysts from agencies that did not always work as closely together.����
Whether fusing the skills of analysts and ops officersas CTC
doesor synthesizing information from home and abroadas TTIC
doesthe goal is to bring together smart people with different
specialties and perspectives.� To assemble their varied talents into
teams real or virtual, of long or short duration.� This has a lot to
do with the successes we have had against our hardest targets.� Most
people don't realize that to capture a terrorist like Hambalithe
killer behind the Bali nightclub bombing in Indonesiaa lot of
different pieces have to come together: across disciplines, agencies,
and continents.� And they did.
Is there more to do?� Yes.� Can we be better?� Of course.� But, as
our country ponders changes in the structure of intelligence, there
are three crucial considerations to bear in mind.�
- First, there is no formula for perfection in my business, any more
than there is a concept of profit and loss.� How do you match a hundred
successes against a single failure?�
�
- Second, this would be no academic exercise.� It will be hardvery
hard.� We are a nation at war.� And one objective must be to minimize
disruptions in the day-to-day work of intelligence.
- Third, any reorganization must preserve the enormous gains we have
made and lay the foundation for more.�
Though it rarely makes headlines, there has been a real revolution
in intelligencefrom recruiting and technology to interagency cooperation
and morale.� One effect of that revolution is that knowledge about us
has a shorter shelf life than ever.� Experiences and impressions that
are just a few years old may be seriously out of date.� I would ask
you to remember that when you hear peopleeven former intelligence
officerstalking about our problems.� What they may not know is
that we have moved beyond the problems they remember and are grappling
with new ones they haven't even heard of.������
For us, change has been a constant and the challenge now is to build
on that transformation.� To have form follow functionby recalling
our fundamental tasks, which are the nation's expectations of intelligence.�
What are they?� We must constantly strive to protect Americans.� To
inform high-level policy through unique insights about the world.� To
support our military.� And, as the President directs, to undertake covert
actionthe ability to not simply report on conditions overseas,
but to change them.
The qualities those missions demand are equally daunting.� Agility,
speed, flexibility, adaptability.� A capacity for both unilateral stealth
and productive foreign liaison.� For fusing information from all sources.�
And for ensuring that our nation's clandestine operations and analysis
are mutually supportive, share data, and are infused with professionalism
and integrity.� Against that backdrop, we do need a true source of central
intelligence.� And someone to run it.�
One of the many proposals out therean intelligence czar who would
stand apart from CIA and oversee all aspects of American intelligencewas
first floated in 1955 and has come up several times since.�
I know the argument can be made for such a change, but in my personal
view, it is not the best answer to the real challenges American intelligence
faces in the 21st Century.� In fact, I believe the benefits
of a position like that can be found without the additional layers of
command or bureaucracy such a change would inevitably bring.� The benefits
can be found by modernizing the structures we already have.
I said that we need a true source of central intelligence.� In CIA,
we have something closesomething that can be made even closer.�
And, through the office of the DCI, we can deepen existing trends toward
interdisciplinary, interagency cooperation and, with additional authority,
achieve the greater agility and responsiveness that the challenges of
the world increasingly require.
Let's start with CIA, specifically the word "central."�
There is a tendency now to view CIA as "just another agency."� It is
not.� It is the only intelligence agency that has the following four
characteristics:� It has Global focus.� It is Multidisciplinary.� It
integrates all intelligence sources.� And, perhaps most important,
it is non-departmental:� that is it does not create or advocate policy.�
Nor is it a component of a department that does.����
As such, CIA can be a neutral meeting ground for intelligence.� A place
where ideasoperational, analytic, and technicalare created.�
And where the ideas of other agencies are heard, tested, and added to
the mix.� CIA already does a lot of this.� But I believe it can do more.
"Central" means that CIA is ideally positioned to draw from, coordinate
with, serve and fairly represent the entire Community.�
That is why Harry Truman asked Congress to create CIA back in 1947.�
That is why the DCI has also been the director of CIA.� And that is
why the DCI belongs there still.
If CIA is to meet its special responsibility, and respond to the requirements
of today, here are four key changes that ought to be considered.
- First, take steps to underscore CIA's non-departmental, nonpolitical
character.� One way would be to appoint the DCI to a fixed term.
- Second, increase the Director's authorities with regard to all
national intelligence agencies.� This would be on condition of close
consultation with the Secretary of Defense but with decision authority
vested in the DCI, who would also have to accept accountability for
meeting military intelligence requirements.� At present, the DCI has
allocational authority over about 10 percent of the Intelligence Community
budget, a figure that hardly qualifies as "central."�
���
- Third, adopt a variant of the Goldwater-Nichols concept to build
a strong "Community officer" cadre.� To reach senior rank, you should
have one or more full-tour assignments in another Intelligence Community
agency.� The aim would be to create a large group of people who can
help CIA manage Community responsibilities and cross-agency, cross-discipline
teams on key substantive issues.
- And, finally, shift more business toward Community-wide centers,
building on the approach that has been so effective in counter-terrorism.�
For enduring issues of extraordinary importance to the countryweapons
proliferation, for examplewe need the quick, seamless fusion
of data, analysis, and operations that the centers can provide.�������
This is about more than wiring diagrams.� It is about flexibility and
authority, and adaptability to bring together the right mix of people
and the right mix of resourcesfrom inside government and beyond.�
The flexibility to handle change routinely.� To contribute decisively
to what will be a long fight against terrorism, without losing sight
of the other security priorities that lie before our nation, each with
its own demands.�����
Ideas for intelligence reorganizations have been with us almost as
long as modern intelligence itself.� One of the earliest was from a
pioneer in the field in the Second World War, General William J. Donovan.�
With battles still raging in Europe and Asia, he sketched out his confidential
views of a peacetime intelligence service.�
Andin a development that sounds all too familiar to us todayDonovan's
plan was leaked to the press, where it was pilloried as something it
most surely was not: a blueprint for an American Gestapo.�
So much for the "good old days."
This early example of a "leak" brings to mind another requirement for
national security in this new era, and that is a renewed commitment
to security discipline in our government.�
I will not say that everything stamped classified should besecrecy
is a grant of trust, not power.� And I know that the overwhelming majority
of American journalists are not only exacting, but courageous and patriotic.�
And the American peoplethrough the press and their representatives
in Congressneed to understand what we do on their behalf.� What
we do well, where we fall short, and what we are doing about it.�
But they also need to understandand I believe they dothat,
taken to extremes, exposure of the nuts and bolts of our work undercuts
our ability to do that work.� I just wonder sometimes if everyone inside
the Beltway or the media does understand this.� Replacing a collection
capability lost to leaks takes both time and money.� But the real loss
must be measured in a country that is less safe and less well defended.
In factand this is one of the most important points I can leave
you withour adversaries, not possessing the conventional power
of the United States, search for ways to gain an asymmetric advantage
over us.� Think about this.� Their ability to keep a secret is one of
those ways.� Especially now, when we have nearly lost our ability to
do so.�������
Yes, there should be debates and discussions about intelligenceits
structure and activities.� That is fundamental to who we are as Americans.�����
As vital as secrecy is to intelligenceto our ability to save
American livesit must never become a wall that prevents an open,
honest dialogue with the American public.� And it has not.�
That is why I am here today.� And that is why I so appreciate your
invitation and your patience, and look forward to your thoughts and
questions.
Thank you very much.�
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