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</A> -Cui Bono?-

February 17, 2000

Pentagon probe targets Deutch

By Bill Gertz
THE WASHINGTON TIMES



     The Pentagon is investigating whether ultrasecret "black
programs" were compromised by former CIA Director John Deutch
after he put details about some of the Defense Department's most
sensitive activities on his home computers.

     Defense and intelligence officials said the Pentagon
recently set up a special panel to examine a personal diary
containing highly classified defense information that was kept
improperly on Mr. Deutch's home computers � desktop and laptop
systems that were used to access the Internet and had received
e-mail messages from abroad.

     The CIA, meanwhile, launched a "damage assessment" to
determine whether its secrets were compromised by Mr. Deutch, who
was CIA director from 1995 to 1996.

     The CIA withheld information from the Pentagon about what
are known as "special access programs" for more than a year and
only provided it after news reports highlighted the security
breach earlier this month.

     Special-access programs are so secret that officials privy
to them are authorized to lie to keep them from becoming public.
Most are kept secret from the CIA and only disclosed to the
Pentagon's top three or four officials.

     Mr. Deutch was briefed on many of these programs when he was
undersecretary of defense for acquisitions and later deputy
secretary of defense from 1993 to May 1995, when he became CIA
director. Most of the programs have been ongoing for the past
seven years.

     Rear Adm. Craig Quigley, a Pentagon spokesman, said a team
of defense security officials was set up 10 days ago to review
the material first uncovered in Mr. Deutch's diary by CIA
security officials in January 1997.

     Adm. Quigley said a damage assessment could result from the
investigation but that none had been launched yet.

     "Let's just see what we find," he said.

     An intelligence official said the information on the black
programs "was in some ways even more sensitive than the CIA"
secrets kept on the home computers. The CIA information included
details of agency covert action programs.

     Among the black programs currently under way are efforts to
develop new weapons and methods of warfare, including electronic
"information warfare" and how the U.S. military plans to conduct
it in the future. They also include highly sensitive intelligence
and collection development programs for future operations.

     That information is known to be a major target of foreign
intelligence services from Russia, China and other nations.

     Other defense officials said privately the fact that details
of special-access programs were kept on computers that are not
secure is a security breach because of the sensitive nature of
the programs.

     They said both Defense Secretary William S. Cohen and Deputy
Defense Secretary John Hamre have resisted calls from officials
involved in the programs to conduct a damage assessment. They did
not say why.

     However, the Senate Select Committee on Intelligence is
investigating whether the CIA covered up the Deutch affair to
protect the nation's top intelligence official from punishment
for mishandling secrets.

     Mr. Deutch declined to comment through his lawyer, Terry
O'Donnell.

     The CIA recently launched a damage assessment of whether its
secrets were compromised by Mr. Deutch's use of home computers to
keep highly sensitive information after leaving the agency in
December 1996, an intelligence official said.

     According to officials who have seen an inspector general
report on the matter, the home computers were not secured and had
been used to access pornographic Internet sites by someone in Mr.
Deutch's household. Investigators also found that one of Mr.
Deutch's computers had received an e-mail message from a Russian
scientist living in Western Europe.

     In addition to the review team looking into the Deutch
diary, Adm. Quigley said the Pentagon inspector general recently
started an investigation into how the material ended up on four
removable computer cards used by Mr. Deutch's Macintosh
computers.

     "They're both ongoing," Adm. Quigley said of the
investigations.

     In a related development, senior CIA officials failed to
notify the Justice Department about possible criminal and ethical
violations by Mr. Deutch shortly after the secrets were found on
his home computer.

     CIA security officials uncovered "clear evidence" in early
1997 that Mr. Deutch may have violated three laws in using
CIA-supplied home computers for personal use and for keeping and
deleting secret information, said agency officials who spoke on
the condition of anonymity.

     However, the Justice Department was never notified of the
violations until months later.

     The FBI was first told about the security breach by Michael
O'Neill, the CIA general counsel and friend of Mr. Deutch, in a
telephone call. However, the FBI did not investigate the matter
because there was no evidence of foreign government involvement,
the officials said.

     When the Justice Department was notified in April 1998 of
possible crimes, only one of the three laws was cited.

     A CIA official said senior agency managers deliberately
focused on the possible disclosure of secrets to foreign powers
because they knew those charges would not be pursued. The
managers were not identified by name.

     "Nobody here ever claimed that he sold secrets to the
Russians or even gave them anything," the official said. "Senior
CIA officials knew nobody would prosecute him for that. . . . And
the Justice Department didn't want the bad publicity so they went
along with the charade."

     The "crime report" sent to Justice from the CIA inspector
general in 1998 also referred to a possible espionage-related
offense that the official said was a "red herring" meant to
distract attention from other serious crimes.

     Investigators planned to notify the Justice Department about
"three crimes we knew were sure-fire violations with clear
evidence, but the chiefs said 'no,' " the official said.

     The three violations included:

     * A law that provides for up to one year in prison for
unauthorized removal or retention of classified documents.

     * A law that provides for up to three years in prison for
concealing or attempting to destroy or remove government
documents.

     * A law making it illegal to work on personal projects where
a financial interest is involved.

     Security officials said the Government Ethics Office was
never notified about one of the possible crimes related to Mr.
Deutch's no-fee contract he arranged after leaving the CIA in
December 1996.

     A spokesman for the Ethics Office said it was never informed
about the possible conflict of interest.

     The CIA official said Mr. Deutch's CIA contract may have
been illegal because the only reason for it was for Mr. Deutch to
avoid having to buy his own computers.

     The official said the contract also appeared to be part of
an effort by Mr. Deutch to avoid having to return the home
computers to the CIA because he was fearful the improperly stored
documents would be discovered.

     The CIA official also faulted current CIA Director George
Tenet for failing to report the crimes to the Justice Department.
The law required the CIA director to "expeditiously report"
information about violations of Title 18 to the Justice
Department.




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