T2 B15 Meeting W Lee Hamilton Fdr- Memo Re Hamilton Testimony To Joint Inquiry 746

TO: FROM: DATE: RE:

Kevin, Lorry, and Lloyd Gordon November 17, 2003 Background for Today's Meeting with Vice Chairman Lee Hamilton

Former Rep. Hamilton both testified before and was interview by the Joint Inquiry. Highlights of his testimony and his interview are attached: The Mission of the 1C, and the Intel/Policy Nexus: •

Intelligence is the most important single tool to prevent terrorism. Policymakers have an insatiable demand for intelligence, but the 1C cannot do everything. Accordingly, consumers must establish priorities. The IC's top priorities are counterterrorism and nonproliferation.

Management of the 1C: •

The term "1C" demonstrates how decentralized and fragmented the U.S.'s intelligence capability is. The 1C is a loose confederation. "There is redundancy of effort, an imbalance between collection and analysis, and problems ... of coordination and sharing." If the 1C was created today, the current structure would not be adopted. There is no one in charge of the 1C.

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A cabinet-level DNI should be created who controls "much, if not all," of the IC's budget and "to whom you look and you know he has the authority in terms of management, and budget, and responsibility and accountability." The DCI's position was strengthened in 1997, but to limited effect. The DCI should not be CIA Director. The 1C should have a statutory foundation, but it will be difficult to enact a statute to this effect - Rep. Hamilton tried and failed three times.

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We a hard-headed cost-benefit analysis regarding the IC's use of resources.

Analysis: • • •

The emphasis no current intelligence erodes comprehensive strategic analysis. CIA and FBI need to alter their modus operandi fundamentally to be able to work together more effectively. The 1C needs a foreign/domestic fusion center. The 1C collects information but cannot analyze it.

Collection: • • • •

We need stronger liaison relationships because al Qa'ida is global. HUMINT needs to be strengthened, but we should not have exaggerated expectations of what HUMINT can achieve. Open source needs to be exploited. He was less inclined toward a domestic intelligence capability.

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Interviewee Lee H. Hamilton Date: October 2, 2002 Those Present: Arthur Menna Alonzo Robertson Peter Livitas Mr. Lee Hamilton was interviewed on October 2, 2002. In the interview, he stated that a single person should head the Intelligence Community, and that position should not be held by the Director of Central Intelligence. Instead, this should be a cabinet-level position and control most of the intelligence budget. Hamilton said the position should control the 1C, not create a new, all encompassing, agency. He said that in today's world it is better and more efficient to have a single head for that position. Hamilton said if the Intelligence Community had been set up today, it would never have been configured the way it is now. The Director of Central Intelligence controls only fifteen percent of the intelligence budget, and therefore, cannot be on an equal footing with the Secretary of Defense. Hamilton said he has high regard for the great people in the Intelligence Community. The FBI and CIA cultures are problematic, but Hamilton feels Mueller and Tenet are beginning to effect changes. In terms of resources, there should be a review of the cost effectiveness of the money being spent. Hamilton said that "we collect [intelligence] but we can't analyze it. In terms of priorities. Hamilton said consumers want more and more information before they take action. Someone has to set priorities and be accountable for the Intelligence Community's focus. Hamilton said it will be difficult to rework the statutory framework for the 1C, and it will impact the President's Foreign Affairs authority. However, intelligence is more important to prevent terrorism than it ever was before. Hamilton said he would shy away from domestic intelligence. He said domestic intelligence agencies are not too interested in the laws of the land because they deal mostly with overseas issues. Law enforcement must prove its case in a court of law, and thus is more concerned with the law. Lee H. Hamilton Interview - page 2 HUMINT is important but there are limitations to what it can provide. Therefore, he recommends putting more money into HUMINT. Hamilton feels that we should be looking to the private sector and studying their systems management efforts.

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