Justice Department Investigates CIA

WASHINGTON (AP) -- The Justice Department is conducting an obstruction-of-
justice investigation of CIA officials who passed along to a satellite
contractor sensitive information about a Senate investigation into technology
transfers to China.

Government officials reached late Friday said the criminal investigation
centers on information passed by the intelligence agency to Hughes Electronics
Corp., maker of both commercial and spy satellite systems.

At issue is whether that information compromised a Senate Intelligence
Committee investigation into allegations that Hughes and other U.S. companies
violated federal export laws by sharing restricted technology with China as
part of commercial satellite export deals.

There is no dispute that the CIA passed information on to Hughes -- the CIA
has acknowledged as much to both the Senate committee and the Justice
Department. The question being examined by the department is whether the CIA
broke the law in doing so.

``The CIA is cooperating fully with the investigation,'' said an agency
spokesman.

The probe was first reported in today's editions of The Washington Post.

U.S. officials familiar with the investigation said it focused on two
incidents in which information connected with the Senate investigation was
passed by CIA officials to counterparts at Hughes.

The CIA told Hughes officials that one of the agency's analysts, Ronald
Pandolfi, had told Senate investigators that he had concluded as early as 1995
that Hughes had become too aggressive in marketing technology to China.

CIA officials also advised Hughes that some company officials might be called
before the Senate panel. The agency further sought to make available to Senate
investigators the names of Hughes executives who were familiar with the
technology transfers to China and could give their version of the
disagreements with Pandolfi.

When the CIA informed the panel it had told Hughes that company officials
might have to testify, committee staffers and some senators were furious,
according to officials familiar with the case.

Several CIA officials, including general counsel Robert McNamara, are
scheduled to testify before a federal grand jury investigating the CIA's role
in the Hughes case.

The potential case against the CIA appears to boil down to one of
interpretation. Some on the intelligence committee argue that the CIA may have
obstructed justice by revealing to Hughes information about the committee
investigation.

The CIA, according to U.S. officials familiar with the case, argues that the
information passed on to Hughes was shared in the normal course of business
and that the committee was informed of the information sharing.

``At worst, this could be viewed as a miscommunication among government
agencies,'' said one U.S. official who spoke on condition of anonymity.

Several investigations -- both by the Justice Department and Congress -- have
focused on concerns that China received valuable information useful in
improving ballistic missiles from U.S. contractors who were ostensibly working
with China on commercial satellite projects.


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