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May 29, 1987
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Approved For Release 200%/ '6%1 ~ :EUA-`RE5Fb1-t# 504,8000&0{33 03-0 &ZI JOT AZIWA:; TV CLIPS DATE TIME NETWORK PROGRAM 75 EAST' NORTHFIELD ROAD 1 LIVINOSTON ~ NEW JFRSFr 0x039 (201) 992.6600 i Ee00) 631-1160 May 29, 1987 8:00-9:00 PM CNN Prime News Mnry Alice Williams, co-anchor: ACCOUNT NUMBER N/A NIELSEN AUDIENCE N/A Standing tall and talking tough, President Reagan tolls all that the oil will get through the Persian Gulf. Here's CNN's Charles Ricrhauer with us now on what the president had to say. Charles Bicrhauer reporting: President Reagan fund economic justification for sending more U.S. warships to the Persian (lulf area, He revived 1970's images of demoralizing gas lines and said that won't happen again while he's president, Aierhauer: National security advisor Frank Carlucci says this does not end U.S. neutrality in the Iran-Iraq war and is not meant to be provocative, Former officials who have been in similar positions urge caution. Stansfield Turner (17=ormcr CIA Director): Presidents and their advisers have a tendency to take the first military stop in the hopes that that will be the last. Bierbauer: The president will ask for help from his allies at the coming Venice economic suminit and after hearing considerable congressional criticism security adviser Carlucci says the administration has no problem with reporting to Congress but does have problems with Congress imposing conditions on such operations. Charles Bierbauer, CNN, the White House. 185 Words 15 Clips Video cassettes are wettable in any format for a parted of four weeks from air data from our kffiltate; VIDEO MONITOA.tNG SERVICES OF AMERICA, INC, (222)736.8010 Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Approved For Release 2006/06/15: CIA-RDP91-00901, 000OC 9660 /l v/ ~~ ~? LOS ANGELES TIMES 8 February 1987 An Aspirin for the CIA, but Major Surgery Needed J By James Bamford offer assistance for future NSC arms- for-hostages operations. Such actions led CAMBRMIL MAK one congressman on the House Foreign its last week William J. . Casey, following Affairs Committee to declare, "There are resign director, Like who brain surgery for a malignant tn- clearly elements who believe they are a government unto themselves." And Adm. rOor, the Central Intelligence Agency is A Stanfield Casey's pr rtes-' eor a seriously ill and the prognosis is for a slow , sal , "If I'd have found out that recovery. Chosen by President Reagan to nurse the agency back to health is Robert M. dates a 43-year-old Soviet ana ys 'w o served as Casey's deputy since April, 1986. Although the choice of Gates has drawn support on both ends of the political spectrum, his selection repre- sents little more than an aspirin where major surgery is called for. Among the most striking revelations to emerge from the recently released Senate Intelligence Committee report is the pic- ture it paints of a weak and confused Casey attempting to run an agency in search of a purpose. For decades pure espionage-the collection of intelli- gence-has shifted to the more cost-ef- fective technospies: The sensitive ears of the National Security Agency and the telephoto eyes of the National Reconnais- sance Office. To fill the void, the CIA turned more and more toward covert operations, an area that Casey, a former Office of Strategic Services operative, was familiar with. But, as the intelligence committee re- port vividly shows, Casey was too weak a director even to maintain the agency's control over covert operations. Thus it was not an experienced CIA official who played a key role in arranging the early arms-for-hostages transfers, but MIc ae1 A. Ledeen, a neophyte part-time em'mTp oy 'ice" tsf Wie' National Security Council who acted more like a lobbyist for Israel than a U.S. representative, and Lt. Col. Oliver L. North, a monomaniacal Marine also on the NSC staff. Ledeen was later replaced with various arms dealers. An even more disturbing revelation to emerge from the Senate report was the agency's lack of control over its own covert-action specialists. For example, it was not Casey but John N. McMahon, the agency's deputy director ac ng as ec- tor while Casey was in China), who ordered that no further CIA activity in support of the NSC operation be conduct- ed without a presidential finding author- izing covert actions. Nonetheless, despite the fact that a finding was not issued until Jan. 17,1986, nearly two months later, the agency's Covert Action Unit secretly continued to there was an intelligence operation run without my knowing it, I'd have quit the next day." Finally, the CIA under Casey may have severely damaged one of the agency's most important intelligence sources: close liaison activities with friendly govern- ments. It is far easier, for example, for the West German government to infiltrate the East German intelligence network- and then share the result with the CIA-than it is for the CIA to spend years attempting to train Americans to do the very same thing. But developing such assets often takes years of patience and, especially trust. Lose of that trust may result in a cutoff of key intelligence for a long time. Unfortu- nately, it is just such trust that the CIA under Casey and Gates has been rapidly squandering. How can any foreign gov- ernment, for example, trust its secrete to an agency that warns them against selling arms to terrorist nations while at the same time is secretly doing precisely that, or allows highly sensitive covert operations to be conducted by a group of inexperi- enced comic-book characters; or misplac- es tens of millions of dollars in secret funds; or supplies doctored intelligence to one side in a war while secretly sending arms to the other? The argument that senior agency officials had no idea that any or all of the above was taking place would only compound, not lessen, the mistrust of friendly intelligence services. These are just a few of the problems the new director must overcome if the CIA is to regain its credibility. Unfortunately, Gates does not measure up to the job. His main virtues appear to be a strong ambition and an ability to follow orders unquestionably. He also appears to have been heavily involved with Casey-not in trying to get to the bottom of the illegal diversion of funds from the Iran deal to the contras, but in trying to cover it up. Gates, for example, was. first informed by a CIA analyst of the possible diversion of funds as far back as Oct. 1, 1986. During their discussion, however, there was never any mention of potential illegality, only talk about the inappropriate com- mingling of separate accounts and the risk of the operation's discovery. Not until Oct. 7 did dates and the other official brief Casey on the likely diversion. Adding to the worry was the fact that earlier that same day Casey had met with Roy M. Furmark, an old friend, who warned him that two Canadian business- men, who had put up money for the arms deal, had not been repaid-and they were threatening to go public. Soon after the meeting, Casey and Gates informed Vice Adm. John M. Poindexter, then Reagan's national security adviser, of the possible diversion of funds to the contras and the possibility that the operation might be blown. What Casey and Gates were obligated to do at this point was inform the congressional Intelligence Committee and also the President's Intelligence Over- sight Board, a small White House body charged with looking into possible illegal intelligence activities. What they did instead was to try to turn a blind eye to the whole operation. According to one report, Gates told the Intelligence Com- mittee that it was CIA policy "to not even want to know about funds being diverted to the contras." "If we even knew," Gates said, "we would be blamed for it." Thus, even though North, over lunch with Casey and Gates on Oct. 9, made reference to the Swiss bank account and money for the contras, neither CIA official were interested in hearing any more about it. All they wanted to know was whether the CIA was "clear}." Assured by North that it was, Casey and Gates pressed no further and again made no mention to any oversight body. The most they did was to ask the agency's in-house general counsel to review all aspects of the Iran project to ensure that the CIA was not involved. The general counsel, without questioning North or, apparently, anyone else with any potential knowl- edge, quickly came up with a clean bill of health for the CIA. Over the next six weeks, growing evidence of the funds diversion continued to flow into the offices of Casey and Gates. Yet the cover-up continued. On Nov. 21, Casey testified before the Senate Intelli- gence Committee and made no reference to the contra diversion. Later, Gates weakly defended the deception, saying that they (Casey and Gates) didn't have enough information to go on. Yet, Gates added, "It was enough to raise our concerns to the point where we expressed them to the White House." There is no doubt, as many have Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 indicated, that Gates represents a vast improvement over his former boss. He is bright, articulate and capable. He also appears to be more comfortable with congressional oversight than Casey, who viewed the intelligence committees with disdain and suspicion. But, his actions during the Iran-contra affair leave a great deal to be desired. Unlike his predecessor, McMahon-who protested loudly over such improper activities as the lack of the presidential finding and then resigned, apparently at least in part as protest to the agency's continued involvement in the arms-for-hostages deal-Gates shows no such inclination toward moral courage. In choosing someone to head up the entire U.S. intelligence community, such a qual- ity must be a principal requirement. In its confirmation hearings next week the Senate Intelligence Committee should send the nomination of Gates back to the White House with the clear message that what the: agency needs is candor, not cover-up. The most effective cure for the CIA's ills is a new director from outside the agency with stature, broad foreign- policy, defense and intelligence back- ground and a free hand to make all the necessary changes. Such an appointment may be the only way to get the agency off the critical list and into the recovery room. 0 James Bamford is author of "The Pumle Palace," an examination of the NationaL Security Agency. 11, Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 A [pt lfo p9 EW ReleaseA9?%00/~ R1-00901 ROO06O0 '9k& : C~ F R 3 l ON PAGE j A I E X C 8 February 1987 fo `4 A growing black bud e k /1, r :. ,1'V' A'& ~ ~ pays for secret wea ns covert wars Quietly, the Pentagon's secret "black budget" is growing faster than any other part of government. It consumes more federal dollars than education or environment. It has tripled in the Reagan years. It pays for complex new weapons systems and dolphins trained as saboteurs, conventional intelligence gathering and plans for World War IV. Yes, Four. ne By Tim Wei Ingei . m nfe Two years ago, a startling item appeared in President Reagan's budget. It was a military project code-named Aurora, and no further description or explanation was given. But Aurora caught people's atten- tion anyway. That's because the projected budget showed its cost soaring from $80 million in 1986 to $2.3 billion in 1987. What sort of project grows like that? Not one the Pentagon wants to talk about. In the administration's defense budget this year, there is no mention of Aurora. The project and its billions have "gone black" - vanished into the vast cache of secret accounts that the Pentagon calls its ''1fI 'tbudget." Since President Reagan took office in 1981, his administration has more than tripled the black budget. This secret spending for classi- fied programs now totals at least $35 billion a year, according to an Inquirer investigation of Defense Department records, corroborated by Pentagon and congressional sources, It now accounts for 11 percent of the Pentagon's current $312 billion spending request, and that number is bound to swell, for the black budget is growing faster than any other major sector of the federal government. The Pentagon says nothing publicly about the black budget, and most members of Con- gress have no access to details about it. Under the cloak of Slack-budget secrecy, the Reagan administration is spending bil- lions on nuclear bombers and millions to train dolphins as underwater saboteurs. It has developed elaborate plans for winning a months-long nuclear war - World War III - and preparing for World War IV. The plans include robots stalking radioactive battPegrounds, satellites orchestrating nu- clear attacks and generals speeding along interstates in lead-lined trucks, ordering warheads fired from faraway silos. The black budget also funds a host of secret weapons. covert military units, one- quarter of all military research and devel- opment and at least three-quarters of the U.S. intelligence community's espionage and covert activities. The black budget is split about evenly between funds for secret weapons and funds for intelligence agencies. The military's por- tion alone has grown eightfold, to at least $17 billion, since Reagan took office. The portion of the U.S. intelligence budget hidden away in the' Pentagon's se- cret accounts has doubled to at least S18 billion under the Reagan administration. And no part of the intelligence budget has grown faster than funds for covert opera- tions-currently more than $600 million a year, according to intelligence analysts. The controversy swirling in Washington over the covert sale of weapons to [ran and the diversion of millions of dollars in profit to contra forces in Nicaragua shows how the secret use of secret funds can undermine trust in government, warp foreign policy and damage a presidency - when it is detected. The spending of those millions to fi- nance secret wars has now raised congres- sional hackles, but the spending of billions to finance secret weapons continues to grow largely unchecked. The black budget now is nearly as big as the entire federal budget for health care. It is far bigger than the federal budget for education or transportation or agriculture or the environme~tt,. The black budgetk fastest-growing com- ponent is secret spending on military re- search and development. Now approaching $11 billion, it has increased 1,357 percent under Reagan. It is three times bigger than, the entire budget for the State Department. And no end is in sight. This is growth that foreshadows huge future increases in the overall black bud,4ct, for research and development is the acorn from which the defense oak grows. So the secret spending will only accelerate as such projects as Aurora - which was a code name for the $60 billion Stealth bomber project - go from the drawing board to the assembly line. National-security laws forbid any public de- bate in Congress that would reveal specific weapons or specific dollars or, for that matter, specific foul-ups in the black budget. Thomas Amlie, a Pentagon missile expert with security clearances high enough to know about some black programs, says the military has "three basic reasons for having them. One. you're doing something that should genuinely be secret. There's only a couple of those, and Stealth ain't one of them. Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Approved For Release 2006/06/15 "Two, you're doing something so damn stupid you don't want anybody to know about it. "And three, you want to rip the moneybag open and get out a shovel, because there is no accountability whatsoever." As a consequence, critics say, the black budget is far more vulnerable than the rest o1 the defense budget to shoddy work, inflat- ed bills and outright fraud by contractors and subcontractors. Rep. John D. Dingell (D., Mich), whose House Energy and Com- merce Committee is trying to penetrate the secrecy surrounding Pentagon spending, said flatly that the black budget "conceals outright illegal activities." ? "The Pentagon keeps these programs of almost unbelievable size secret from Con- gress, from the General Accounting Office, from its own auditing agencies," Dingell said. "And every time they have kept secrets from us, the facts, when they come out, have been surrounded by a bodyguard of lies." Although the few members of Congress who are briefed on the black budget, and the larger number who are not, are growing increasingly unhappy with the system, they have been unable to pierce the Pentagon's shield of secrecy. In the U.S. House of Representatives, the chairmen and ranking minority members of committees dealing with military matters receive briefings on black projects. In all, about 30 House members are given limited information about some black programs, ac- cording to congressional staff members. Sen- ators overseeing military and intelligence affairs have greater access. Two of those in the know, House Armed Services Committee Chairman Les Aspin (D., Wis.) and ranking minority member Wil- liam Dickinson (R., Ala.), think the Penta- gon's secrecy is unjustified. They have said 70 percent of the black budget could be declassified at no risk to national security. Black budget is the Pentagon's own term for projects it hides from public view by classifying their titles, their costs or their objectives. (It does not include the Strategic Defense Initiative. or "Star Wars." which has been kept out of the black budget so that it can be promoted openly in the political marketplace.) Black projects are concealed in several ways. In many cases, their costs simply are deleted from the unclassified budget. Some are given code names, such as Bernie, Tacit Rainbow and Elegant Lady, or hidden under innocuous headings such as "special activi- ties" and "advanced concepts." For example, the fiscal 1988 Air Force procurement budget includes a line item of $4.7 billion for "selected activities," $3.1 bil- lion for "other production charges" and $2.3 billion for "special programs." That is all that Congress as a whole knows about these three black programs and the $10.1 billion they will consume. All told, more than S25 billion nearly one-fifth of all Pentagon spending for devel- oping and producing weapons and materiel - is hidden in the black budgets for re- search, development and procurement. These secret programs are financing air- craft, weaponry and military satellites whose final cost will far exceed $100 billion. "A fair question would be: What the hell's going on here? This is a tremendous amount of money to be spending with no oversight," said John Steinbruner, an expert on nuclear- war strategy who directs foreign-policy stud- ies at the Brookings Institution in Washing- ton. "Somebody's got to say: 'Hey, are we running a democracy or not? Is the fetish for secrecy undermining the political proc- ess?' " "This is a problem that Congress persist- ently refuses to face, and the consequences could be very, very serious," said William W. Kauffman, a top defense-budget adviser to Presidents Kennedy, Johnson, Nixon, Ford and Carter. "I think people in Congress don't realize that with the black budget increas- ing as it is, they've really got an explosive situation on their hands. Either the Penta- gon is going to have to give some of these projects up or we're going to see an explo- sion in budget authority and outlays." But few members of Congress have the time or energy to fight the Pentagon for information on black projects. Several spent more than a year trying to obtain accurate budget data on the Stealth bomber. The Pentagon finally released five-year-old clas- sified cost figures that many in Congress suspected were misleading. "They control what the Congress gets and sees," said Rep. Denny Smith (R., Ore.), who calls himself a "cheap hawk," a cost-con- scious conservative, on defense issues. "As a congressman, I can't get information. ... They don't want to have us mucking around in their budget. "There's a real question here," Smith said. "Will the military accept civilian leadership when it comes to choosing weapons?" A senior staff member of the House Gov- ernment Operations Committee said that even what little congressional oversight ex- ists has been weakened by the Pentagon's budgetary sleight-of-hand. He said the Penta- go!Ws a double-ledger system of account- ing,Nr black projects in which "brooms bec a computers" and computers become bombs. "The Pentagon gets tremendous benefits from misleading Congress, and very few risks," he said. "As more and more money disappears into these ultrasecret programs, the checks and balances are basically being eroded. ... Congress has become less and less alert to this. It is abdicating power." The black budget, Defense Secretary Cas- par W. Weinberger said at a Jan. 6 news conference, is made up of "funding which we believe it is better for us not to publicize, on the very sound premise that we don't see the purpose of giving additional information to the enemy." Weinberger, of course, was referring to the Soviet Union. However, many members of Congress believe he had another adver- sary in mind. "The attitude of this administration is that Congress is the enemy." said Rep. William H. Gray 3d (D., Pa.), chairman of the House Budget Committee. "So we simply do not get nearly enough information to keep track of these secret accounts. The administration has run wild in this area. They are trying to end-run Congress as if there were no checks and balances in the Constitution. It is a very dangerous policy." And even the staunchest supporters of national security now are questioning the black budget's growth. "I know quite a lot of black programs, and many of them are well-managed," said Rich- ard Garwin, a longtime defense consultant and presidential adviser who helped develop the hydrogen bomb. "But the proliferation of these programs is very bad. It is primarily to avert criticism and evaluation. It is part of a general trend of this administration to block information on its programs, whether they be classified or unclassified. And that is profoundly anti-democratic." Increasingly, the Pentagon is pushing pre- viously unclassified programs into the black budget. About $4.5 billion in once-public Pentagon spending, such as funds for the Milstar space satellites designed to help fight nuclear wars, has vanished into the black budget in the past two years. "Huge areas have been removed from pub- lic debate," said Jeffrey Richelson, a profes- sor at American University in Washington who has written several acclaimed studies on U.S. and Soviet intelligence. "Whole pro- grams have gone black without Questions being asked, such as: Do we need these weapons? Will they be destabilizing?" Richelson said, "The secrecy once re- served for extraordinary programs" - such as the Manhattan Project to build an atomic bomb during World War II - "now has become an everyday, every-time affair." Why are more and more projects becom- ing black? The foremost reason is the Rea- gan administration's desire for secrecy. That has driven the black budget upward more forcefully than any weapon in the Penta- gon's plans. In 1982, President Reagan signed an execu- tive order revising the procedures for keep- ing secrets. The order said, in effect, that in balancing the public's right to know against the government's power to keep secrets, se- crecy would carry more weight. The order allows bureaucrats to "reclassi- fy information previously declassified" and forbids them to consider the public's inter- est in access to government information when deciding to classify a document. Since then, the government has been classifying more documents and declassifying fewer than in previous administrations, according to the federal Information Security Over- sight Organization, which monitors classifi- cation orders. But there may be reasons other than se- crecy that are driving the black budget higher. A recent report by a presidential commis- sion on.defense-security practices warned that black programs "could be established ... to avoid competitive procurement pro- cesses, normal inspections and oversight." And a senior House Armed Services Commit- tee staffer, Anthony Battista, noted in a 1985 briefing that a multimillion-dollar radar- jamming system was classified to hide the Pentagon's violation of competitive bidding rules in awarding the contract. Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 security clearances necessary to audit black Battista told the Armed Services subcom- documents show. Sophisticated Army and programs, which usually are classified as mittee on research and development that Air Force electronic?warfare systems; Navy "sensitive compartmented information," a the Pentagon "is putting more and more into programs aimed at disguising U S. subma classification above top secret. There are e . . the black programs, not because of na- rines' movements and detecting enemy subs more than 10,000 such security "compact- tional security, but simply to skirt the nor- with underwater sensors, and advanced menss," and it is illegal for anyone without mal acquisition process." computer, radar, communications and jam- that specific clearance to possess knowledge Very few federal investigators have the ming systems are among the projects driv- of the program. The most costly by far is the Stealth bomb' ing up the black budget. That raises the question whether the fiscal er, which is becoming the most expensive All are cloaked in the secrecy that tradi- abuses revealed in unclassified Pentagon weapon in American history. The Air Force tionally has been reserved for the nation's procurement programs - the $7,000 coffee wants 132 of the planes delivered by thle espionage agencies, pots and $600 screws - also are occurring in early 1990s. Most military experts place the The in rell+Qen cecolzim1Aniit._.L~cves secret. bomber's ultimate price at about $450 mil- more than 75 percent of its funds from the "In a black project, people don't worry lion apiece. If that estimate is accurate, th?e Penisgon s ac u et. The intelligence about money," says a systems engineer who Stealth bombers' total cost will be 560 billion commune y s s are 05 e -mrc-R-uff-geT has on proj space, s four black ckheeeed d at the - a sum equal to the combined annudl funds the CIA. the National curity Agency and ce m division of Lock Missile a Space e Co. in Sunnyvale, Calif. budgets of New York, New Jersey and PenA? and the National econnaissance ice, e as we as t e mi i ary "a you you money, you got it. If you screw syStealthlvania. Stealth-bomber spending may be spread Their u gets appear in o is ocu- en need asked more, thayou t got it," said the out over several programs to hide its iti}- went. engineer, you published. who pouring his name not .be mense size. Now that Aurora has vanished, ___T le'CIA's budget, an estimated $2.3 billion, tlthing. "You're you ojust it rig money into, analysts say Stealth money is cached in has more an doubled under the Reagan the thing until d get ii right the The insme; two Air Force line items: "other productioxi administration. n no part o it has grown five isn't there to it right the first time. charges - $3.1 billion" and "special pro- faster than funds or covert operations, now Who's going to question it?" rams - $2.3 billion." Some say it is hiddei million o ore a year, Questioning the black budget is difficult for g within the Department of Energy's $8 billion But the ms's budget remains the smallest of a Congress lacking lacking information. But Bud by limits i th in budget for military programs. those o the three major intelligence agencies. future d spending required The Pentagon refuses to disclose the price is dwarfed by e National uri gen- Gramm-Rudman budget-cutting law may! tag on Stealth technology, saying the Soviets cy s, which has n placed at billion. force the issue. The law, which is designed to could deduce the status of the projects by vacuum cle~kier of phase out the federal deficit by 1991, says SQ tracking the spending. Top Pentagon offi- The intelligence. NSA e. is a Its glolistening bal obal vacuum include percent of the budget cuts should come from cials decline to respond to reports that theound stations around the oand KH 11 defense spending. And the federal deficit tl~is Stealth aircraft's heralded radar-evading ground stations around world . The s l1 year will be $174.5 billion, according to U ability already has been outstripped by ad- spy nd and satellites agrouor stations orbiting the earth. l- telexes, ntarh. The s intercept microwave from ground nonpartian Congressional Budget Office. - ' vances in radar technology. They have de- lites Those seeking more bang for the defensk nied in a public hearing before a congres- tion transmitters, iot dho and amicrowave NSA buck are concerned that the growing black rosional oversight committee that Stealth can missiles pick out specific late satellites. NSA budget will crowd out defense spending for aircraft exist. computers P mundane but crucial things such as boot9 The hearings stemmed from a series of tions from the babble of international tele- and bullets security lapses and frauds on Stealth proj- communications traffic. "What we see in three to four years s a ects. The Stealth-related criminal cases are The NSA also conducts surveillance within train wreck coming," said Gordon Adams of 'r the United States. A secret court of federal the Defense Budget Project, a Washingtotl only "the tip of the iceberg" of illegal con- judges, which meets periodically in a secure research organization that analyzes Penta? duct on black projects, said Robert C. Bon- chamber within the Justice Department, gon spending. The crash he envisions: rush; ner, the U.S. Attorney in Los Angeles, a hub grants the NSA license for domestic opera- ing headlong in one direction, tens of bilk of secret military contracting. Corp., the tions. Under a secret directive signed by lions of dollars in immovable black weapons One engineer hired by Northrop President Reagan, the NSA has access to the projects; coming the other way on the same. lead contractor on the Stealth bomber, was a computer systems of the IRS, the Social Secu- track, tens of billions in unstoppable budget Florida chain-gang alumnus named William rity Administration and every other civilian government cuts mandated by the Gramm-Rudman law. Reinke. He was convicted of defrauding the overnm nt agency. No law establishes or limits the powers "The consequences of that train wreck for company of more than $600,000 by channel- national security are enormous," Adams-ing Stealth subcontracts to a company he and responsibilities of the NSA, which was said. "What piece of flesh do we cut? Do we secretly owned. In another case, a Northrop created by a secret, seven-page order signed mothball part of the Navy? Cut personnel?' purchasing agent, Ronald Brousseau, was by President Harry S, Truman in 1952. The We will have to make those choices, and all, convicted of rigging contracts in exchange NSA regularly spied on American citizens for a black budget we know nothing about. for kickbacks from subcontractors. He de- until 1973, when revelations in the Water. But something can be learned about th4 :scribed the ease of defrauding black pro- gate affair ended that practice. The only black budget. The Inquirer reviewed mor ;grams to a government informant wearing a known mention of the agency in the public than 10,000 pages of Defense Departmen ..' oncealed tape recorder: "We don't have any laws of the United States is a 1959 statute that budget documents, studied the congress i'heads, we don't have any supervisory people. lineal testimony of Pentagon officials and Nobody questions dollars or anything interviewed military and intelligence ex,'4ike that." perts inside and outside of the Pentagon fo>; 1 Few in Congress nc Snead h tatelquestion ueor this series. ~dollars Within the military's black budget, no"expect satisfactory answers about Stealth's subject is more controversial or costly tha4 capabilities, said Rep. Mike Synar (D., Okla,), Stealth technology, which is designed to.hecause of "the absolutely adamant refusal Synar called informtion enable aircraft and missiles to elude enem} Stey the alth," a refusal to release "an insulto radarr. I radar. to Although the technology is a relatively Congress." open book - an informative volume on the Synar said his experience in trying to subject can be bought in the Pentagon book obtain accurate cost figures on the bomber store and accurate models of Stealth fighters taught him this lesson: "It's obvious that can be purchased in toy stores - its true Defense (Department officials) will not be cost remains a state secret. Defense analysts truthful with Congress and the American place the combined costs of Stealth projects public when they think it's in their inter- for Air Force fighters and bombers, nuclear est." cruise missiles, pilotless drones and Navy Stealth the biggest of the military planes at $100 billion. grams, but other secret ~OANf? absorb billions of defense dollars, Pentagon Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 qq~~gqrove~ Forelease~ 20061,~,,:,1~gRQP-0901 R00060390003-0 states: "hing in his ac or any o her a bt . shall research satellites. l be construed to require the disclo- ilItslsbudtsed et as is weather estimated and at $4 billion. sure of the organization or any function of g the National Security Agency." Employing at least 60,000 civilians, and working closely with the Pentagon from its Fort Meade, Md., headquarters midway be- tween Washington and Baltimore, the NSA also controls the nation's cryptography pro. gram, making the codes for U.S. forces and breaking the codes of foreign nations. The third major espionage agency is the National Reconnaissance Office. Its existence never has been openly acknowledged by the United States. It is an agency so secret that its letterhead is classified. It is known to operate satellite reconnaissance systems under the direction of the Air Force, and it provides photographic data to the intelligence commu- lap with the Pentagon in their missions. For example, the Army provides cover and per. sonnel for CIA operations, such as the train- ing of the Nicaraguan counterrevolutionar. ies, the contras. The Pentagon controls a variety of intelligence programs, including the entire National Reconnaissance Office, the NSA's spy satellites and code-breaking, research and development of espionage equipment, and submarine surveillance of the Soviet Union. Most congressional critics of the black budget make a practical distinction between the rapid. growth of secret military spend- ing, which they see as largely unjustified, and the black budget for espionage. Few have argued that intelligence programs should suffer public scrutiny. But even this consensus has been strained by revelations that the CIA has kept Con- gress in the dark about covert operations of questionable legality, ranging from the min- ing of Nicaragua's harbors to the arms-for- Iran and cash-for-the-contras deals. "I'm not against black programs," said Stansfield Turner, who served as CIA direc- tor from 1977 to 1981. "But is Congress will- ing to let these programs go through with- out knowing what's in them? It's clearly become much more difficult for Congress to get information, and it's clear that congres- sional oversight has been narrowed. I don't know whether that's a good thing." One concept of the Stealth bomber . Four modified F 101 engines The super -secret Stealth bomber now in prodvcbnn looks somerhirq like Ihis acc'rd~n, rn educated guesses by aviation experts Stealth rises special J-o,,s ind materials to avoid defection Its flat shape. lets enemy radar skim river .i r91he, rhr^ h .'ring back to enemy locations and revealing the bomber s position to ;k -n Ibsorhs rather ?hn i roflnets radar signals Is engines have mufflers that work like a silencer nn ,i gun ireduce hear Inrl nrhaiist chieirling the plane from infrared heat sensors It carries elecr cmc iyevices to lam Inn Iii enemy duterrors Rotary launcher Advanced (eight cruise missiles or 883 cruise missiles thermonuclear gravity weapons) Vecloring/reversino nozzles Absorbent baffles Auxiliary inlets Auxiliary nlels absorbent baffles and veitOrinq 'eversinq nobles disguise entice heat and exhaust to avoid detection by infrared sensors I Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 Anatomy of a black budget This page taken from the Pentagon's fiscal 1988 budget request for Air Force research and development programs shows how black protects are hidden from public view, Unclassified programs have clearly stated functions and costs. Black programs such as Lea do not. O"C LA SS 1 11EO Oe0artment Of r fv 1966/1989 a On1 a E Forc? Program E.nrolt a-1 3600 F eessarcn Osvel0oment last 6 Eva1 ?P Oats: 05.,A._1967 rnowsand$ of Ool tars LIna Program Element no r.umoar 3 2.576 25.699 37 151 ]8.064 u 89 12622$ '-LEO 3 90 3 3 1 3 1 f m m lss snt~al Ems rgencr Cans.,^c4l ions 3 '7.802 60.227 55.5988 34.731 91 011.or0 1 w8ECs1 33152$ wgrld-SIda .111 10" Command and Control 4.338 7.59] 5.'07 5.319 92 Satama. tntormat ton SySItm 33154F wWMCCS Information Sr'tom Joint ere9r am 3 56.422 94.930 8.1 089 91.425 93 uaneOsmant OfIics 33601E r Ii star Lis 11 ire Communlcstlons 5rstem (Af 3 117,734 271.966 229.229 310.353 u 94 naltl 33403$ w, let-1 Sa uillta Commun4cats ons Srs 14 3 3 331.317 470.316 1 95 35124$ Spec:.' toolicat. ons Program 98 35155$ Tnaat sr mwcl oar weapon Storage L Sec.,r1l, 3 S yetem e7 39172$ slFMll 96 35692Fet Spac 4.I Analyela ACtlvttiea--n Black projects such as this one, code-named Bernie, have classified titles to disguise their purposes. Their costs are deleted from the public Pentagon budget. This black program's title suggests something to do with intelligence. Its purpose and cost are secret. The Milstar satellites went black in this year's budget. Funds for Milstar exceeded $800 million in fiscal years 1986 and 1987. Growth of Air Ford 22 Pentagons 9.t Federat s d! by category as bl&* WdgM secret research and 35 Fiscal year 1986 development 6 519 In billions . spending Toa Aa Force budget for 18664/on. In billions 28 development and iFaral 3535 26 prdcuremalt:51 i b_?1ar 1981081 25 1.296 511hub0n 0.626 ^ L '98! 1983 1985 1987 1988 14 Total of brbled:9 for wnlcn no cost g?res are OiODSneo m the ?xlass f ed budget. An add1BOnal $1.7 blllOn n OrbleC'?s wCh 1i 0 olsrad coals-out wn clasoil ed code names-bangs 1013196 esearch ono oevelopment 10 y 0 c u a w U---ii - _ v = Air Force black budget for research, development and proct3rarnent 5 Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 A proved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0 ART!CLE APPEAE ON PAGE -kA USA TODAY 17 February 1987 CIA choice has tough tasks ahead By Sam Meddis USA TODAY The Senate could confirm 7 Robert cZates-today as youn- ~ver .CIA director. But, at 43, the 21-year CIA veteran faces two larger tests: ^ First, defending the CIA's role in the Iran-contra scandal at confirmation hearings - to- day on CNN at 10 a.m. EST. ^ And, over the next two years, establishing his indepen- dence from the Reagan admin- istration so he can retain the post under a new president. uPi "I flatly predict - I have no GATES: Married father of two question in my mind - he called a very private person should be confirmed," said Sen. 1?atk Leah D-Vt. "oil drilling equipment." toes has era putation for Some senators may try to ex- hard work, a flair for analysis tract a pledge that Gates will and a scholar's savvy about the tell the panel of all future se- Soviet Union. He joined the cret CIA operations or resign. CIA in 1966, remaining in the Ex-CIA Deputy Director analysis unit - never in clan--4 Bobby Inman Gates has a destine activities. He become s Ong c ance of staying on af- deputy director in April. ter Reagan: "His reputation But the Senate Intelligence (as) a non-partisan, competent Committee hearings will raise professional is already there." sticky questions about Gates'4 Says ex-CIA Director Stans- role in the Iran affair. field Turner: "It's a good move "I expect some fairly tough to start with a new generation." questions on ... what he knew./ Roy Godson, a Georgetown and when he knew it," says Jim Umvversi government profes- Dykstra, a committee staffer. sor, says Gates will have to If Gates knew anything, the fend off congressional efforts questions are likely to turn to at new restrictions on the CIA why he didn't tell Congress. while improving counter-intel- While committee Chairman ligence in the wake of embar- Sen. David Boren, D-Okla., says rassing big spy cases. the hearing won't become a "It would be hard enough to full-blown arms scandal probe, do either one of those," Godson Gates is certain to be asked said. "And he's got to do both." about reports of a cover-up. Contributing: William Ringle News reports claim a cover- up story was drafted for ex-CIA director William Casey - now recovering from brain surgery - to be presented before the Senate, saying the CIA believed missile shipments to Iran were Approved For Release 2006/06/15: CIA-RDP91-00901 R000600390003-0