-Caveat Lector-

http://www.nytimes.com/2002/06/01/national/01INQU.html?todayshe
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June 1, 2002
F.B.I. Was Warned It Could Not Meet Terrorism Threat
By JAMES RISEN and DAVID JOHNSTON

WASHINGTON, May 31 � A top secret report warned top officials
of the F.B.I. in the months before Sept. 11 that the bureau faced
significant terrorist threats from Middle Eastern groups like Al Qaeda
but lacked enough resources to meet the threat, senior government
officials said.

The internal assessment, one of the bureau's most closely held
documents, found virtually every major F.B.I. field office
undermanned in evaluating and dealing with the threat posed by
groups like Al Qaeda, the officials said.

The document, called the Director's Report on Terrorism, provided
detailed recommendations and proposed spending increases to
address the problem, officials who have seen it said.

Despite this assessment, the bureau failed to win an increase in the
Justice Department spending request submitted shortly before the
Sept. 11 attacks. On Sept. 10, Attorney General John Ashcroft
rejected a proposed $58 million increase in financing for the
bureau's counterterrorism programs. But a Justice Department
official said today that the director's report was not provided to Mr.
Ashcroft's budget staff.

Even as the director's report was describing how the bureau lacked
the ability to respond adequately to the wide array of significant
terrorist threats facing the nation, bureau officials missed clues from
at least two of its field offices about the possibility of a terrorist
attack on the United States, a failure that led this week to the
announcement of a sweeping overhaul of the bureau's mission by
its director, Robert S. Mueller III.

Today, F.B.I. officials said that the report was intended to support
the agency's budget request and was not meant as a
comprehensive assessment of whether the bureau could thwart
terror attacks from a specific group.

But the report did provide an accounting of the abilities of each
F.B.I. field office in the country to deal with the overall terrorist
threat. It graded the ability of each office to deal with overall terrorist
threats, and also looked ahead to try to determine how much more
would be required over the next five years. Based on a color-coded
system, with red meaning that a field office was unable to counter
the terrorist threat in its region, most of the major F.B.I. field offices
were listed as red, officials said.

The report was discussed both by senior law enforcement officials
and by other officials critical of the way the bureau and the Justice
Department handled counterterrorism matters before Sept. 11.
While the report was not only about Al Qaeda, F.B.I. officials
recognized at the time that Osama bin Laden's network posed the
biggest threat to the United States. And the fact that the F.B.I. had
almost no intelligence on Al Qaeda's plans and intentions in the
United States was clearly one of the underlying problems reflected
in the way the bureau graded itself in the report.

To a large extent, the bureau's ability to determine that there was a
threat from Al Qaeda inside the United States came from technical
intelligence � intercepted phone calls and other forms of
communication between Islamic extremists overseas and people in
this country. Information gathered from witnesses in major terrorist
court cases, particularly in connection with the 1998 bombings of
two American Embassies in East Africa, also provided some details
about the organization.

But the bureau had not thoroughly penetrated Al Qaeda cells in this
country, and so had only a little ability to exploit the intercepted
communications.

This lack of inside information clearly influenced how the F.B.I. dealt
with warnings it received from its agents in the field last summer. In
July, an agent in Phoenix sent a memorandum to counterterrorism
officials at the bureau's headquarters saying that several Arabs who
were being monitored for possible terrorist ties were taking flight
training in Arizona. The agent warned that Mr. bin Laden's followers
might be coming to the United States for aviation training, and
recommended that the bureau conduct a survey of Arab students at
flight schools around the nation. Officials at F.B.I. headquarters had
not acted on the recommendation before Sept. 11.

And in August, just as the director's report was being received by
top F.B.I. officials, agents in Minneapolis arrested Zacarias
Moussaoui, a French citizen of Moroccan descent who government
prosecutors now believe was the would-be 20th hijacker. Mr.
Moussaoui had attracted the F.B.I.'s attention after an employee at a
flight school called the Minneapolis office to say that he was taking
flight lessons and was acting suspiciously. But before Sept. 11,
officials at bureau headquarters rejected a request from the
Minneapolis field office to seek a warrant to search Mr. Moussaoui's
computer.

With little inside information about Al Qaeda's efforts in the United
States, the bureau did not know how to assess the significance of
Mr. Moussaoui and could not judge whether the agent in Phoenix
was on the right track. The agents in Minneapolis and Phoenix were
essentially feeling their way in the dark.

The Director's Report on Terrorism was first produced as a result of
an effort by Dale Watson, who now oversees the burea's
counterintelligence and counterterrorism operations, to get a better
handle on the agency's capacity to deal with newly emerging
terrorist threats, officials said. A 1998 strategic plan for the F.B.I.,
which originated with Robert Bryant, then the deputy director, sought
to revamp the bureau so that it could better address
counterintelligence and counterterrorism, and Mr. Watson wanted
more information from the F.B.I.'s field offices to adjust to the new
strategy. Mr. Bryant's plan was in many ways similar to the one just
announced by Mr. Mueller, who took over just days before the Sept.
11th attacks.

"In the late 1990's, the world had changed, and Bryant was trying to
change the direction of the F.B.I.," said one official familiar with the
strategic plan. "So they began to look at their vulnerabilities. They
had the capacity to go after a bank robber, but in the late 1990's,
they needed the capacity to get better information collection in order
to deal with problems like counterintelligence and terrorism, and
Bryant saw that the bureau didn't have that capacity. Watson was
trying to apply that standard to counterterrorism."

The director's report used several measures to judge the capacity of
each field office to deal with the terrorist threat. A field office might
need more Arab or Farsi speakers, and might report to
headquarters that agents recognized the need for a source at a local
university to get to know Arab students. Another field office might
report that its counsel needed more training in how to process
requests for search warrants and wiretaps under the Foreign
Intelligence Surveillance Act.

Law enforcement officials say that the data gathered from the field
offices prompted Mr. Watson to push hard for improvements in the
bureau's counterterrorism efforts. They added that he recognized
that there was an uneven track record on counterterrorism from one
field office to another. His efforts were hampered by the fact that the
bureau's New York office had become a major, independent player
in counterterrorism investigations, however, making it more difficult
to coordinate counter-terrorism efforts on a bureauwide basis.

Meanwhile, officials said that after the Bush administration came
into office, top Justice Department officials did not initially see the
urgent need to upgrade counterterrorism. In August, officials said,
the bureau's acting director, Tom Pickard, met with Mr. Ashcroft on
a supplemental financing request for counterterrorism, but was
turned down.


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