Congressional Record: September 23, 2004 (Senate) Page S9555-S9557 INTELLIGENCE REFORM Mr. GRAHAM of Florida. Mr. President, this is the fourth floor statement I have made on the subject of intelligence reform. I have spoken previously about the history of our intelligence community, how did we get to where we are today. I have talked about the failures of the intelligence community to adapt after the end of the Cold War. And I have talked about the unfortunate lethargy with which both the current administration and, I must say, the Congress, have responded to the needs for much-needed reform of our intelligence agencies. I must also express my gratitude for the excellent work of the independent 9/11 Commission. This Commission has built upon other sets of recommendations going back to the mid-1990s for the overhauling of our intelligence structure. Today, I would like to spend a few minutes discussing the shape that I believe the organizational reform should take, and I would like to begin by briefly recalling the history of our modern Department of Defense. The Defense Department evolution can be divided into three historic phases: first, pre-1947; second, 1947 through 1986; and, finally, 1986 until today. In the first phase, the pre-1947 phase, practically going back to the birth of our Nation, we had independent services which had little coordination one with the other. The Navy had its own Cabinet level Secretary. The Army had its own Cabinet level Secretary. The Army Air Corps, which was a product largely of the Second World War, was about to be spun off from the Army and almost certainly would have had its own bureaucratic structure. What avoided that from occurring was that Congress, at the insistence of President Harry Truman, stepped in, in 1947, with the National Security Act. This act created, among other things, the Department of Defense with a single civilian at the top and service chiefs reporting to that single Secretary at the top. That action did not end all rivalries and competition for budget dollars and prestige, but it helped. However, there were dramatic instances of operational failures, including the botched attempt to rescue hostages in Iran and the bombing of the Marine barracks in Lebanon and the problems which plagued the invasion of Grenada. All of these in their own way pointed to weaknesses in the structure that existed in the period from 1947 to 1986. By 1986, Congress moved to address these concerns, the concerns that the services were not communicating well together or coordinating their activities toward common missions. The Goldwater-Nichols Act of 1986 decentralized the military establishment and created joint operation commands based upon geography. The Joint Chiefs of Staff were given responsibility for planning and advising the civilian command structure on strategy. The joint commands have become very familiar to us all, and I might say, I am proud to say that three of these are based in my home State of Florida: the Southern Command in Miami, the Central Command, and the Special Operations Command in Tampa. Goldwater-Nichols gave our Nation a much more effective mission- oriented warfighting machine. It is well recognized that this could not have happened had it been conducted under the centralized form of 1947. The challenge today is, it took 39 years for the military to evolve from the centralized system of 1947 to the decentralized system of 1986. Using this analogy of our military command structure, I would suggest that our current intelligence community, the community of 2004, is in the pre-1947 state. I would further suggest that if this is the year to be ``the 1947 for intelligence,'' we cannot wait 39 years to get it right with our intelligence community, that we cannot centralize the leadership of intelligence agencies under a new director of national intelligence and then wait for decades until we enact the equivalent of Goldwater-Nichols legislation for the decentralization of intelligence. Given the threats we face around the world, it is urgent that in the same act that brings the intelligence agencies together--which are defined around functions--under a new director of national intelligence, that in that same legislation we need to lay out the plan for the most effective management of intelligence and collection and analysis in order to achieve the missions responding to the threats we have today. At the very least, we should plant the seeds for the next necessary step--decentralization, jointness of effort among our intelligence agencies and personnel, and a mission-based orientation. I would propose, as has the 9/11 Commission, that we empower the director of national intelligence to establish centers which are built not around regions of the world, as are our military commands, but around the threats to which our intelligence community must better understand and equip us to respond. The 9/11 Commission recommended one such center, a center on counterterrorism. In the legislation that is currently being considered by the relevant committees in the Senate, there is a statutorily directed counterterrorism center. I am pleased that President Bush has now begun to provide, belatedly as it is, the creation of such a center by statute. Other centers which should be authorized in this legislation but not specifically identified are those that focus on other challenges, challenges that we face today, challenges that we may face in the future. For instance, I do not believe anyone in this Chamber would question the fact that we need to have a national intelligence center which focuses on how we are going to counter and combat the proliferation of weapons of mass destruction. We will probably also find that we need to have a center which focuses on financing, the financing of rogue states, the financing of terrorist organizations. It is entirely possible that we will need to create centers to respond to threats that are defined by national boundaries or regions, such as the specific dangers posed by regimes in North Korea and Iran. But most of the threats we now face do not lend themselves to geographic definitions. Just look at how al-Qaida has rejuvenated itself into so many decentralized parts of the world with such a flexible, nimble organizational structure, that we failed to wipe it out in Afghanistan, diverted our attention to Iraq, and have now allowed the enemy to become much more violent and effective. The analogy that I have used is to that of a puddle of mercury. If you slam your fist into the mercury, it does not disappear. It becomes a thousand tiny blobs scattered over the tabletop. That is essentially what we have done to al-Qaida. We have slammed our fist into the puddle of mercury and now we are faced with literally hundreds of droplets around the world. The key to this mission-based decentralization of intelligence, in my opinion, is that we must give the director of national intelligence the statutory authority to manage the community with flexibility and nimbleness so he or she can quickly establish new centers or modify existing centers as future threats emerge, just as Goldwater-Nichols has given that authority to the Secretary of Defense. Again, there is an analogy in the Defense Department since Goldwater- Nichols. Originally, the countries of Syria and Lebanon were assigned to European Command because they were thought to be more relevant to European defense issues than the Middle East. Recently, there has been a reorganization for those two countries, recognizing the fact of the threat they pose through such things as providing sanctuary to some of the major international terrorist groups, that it would [[Page S9556]] be more appropriate to assign them to Central Command which has responsibility for the Middle East and Central Asia. I am very pleased that such an approach has a growing number of advocates within the intelligence community. As an example, Flynt Leverett, a former senior analyst at the CIA and later Senior Director for Middle Eastern Affairs at the National Security Council from 2002 to 2003, is now a visiting fellow at the Brookings Institution. He wrote an opinion piece for the New York Times in July of this year. In that article, Mr. Leverett said the following: Clearly, structural reform needs to go beyond the creation of a freestanding intelligence ``czar'' who would oversee the entire American spy network. We need to develop a model of ``jointness'' for the intelligence community, analogous to that which Goldwater-Nichols Act did for the uniform military 18 years ago . . . Before Goldwater-Nichols, too many modern military missions were characterized by disaster . . . Since Goldwater-Nichols required the armed services to collaborate, we have seen the successes of Panama, Operation Desert Storm, and the outstanding battle performance of our forces in Afghanistan and Iraq. This model should be applied to American intelligence. This means moving away from the current organizational structure, [which is] defined primarily along disciplinary and agency lines . . . Instead, we should organize and deploy our resources against high priority targets, including terrorism, weapons of mass destruction, China, and the problem states in the Middle East. Focused on a particular target, each group would draw on people and resources from across the intelligence community. . . . Existing agencies would function primarily as providers of personnel and resources, much as the individual military services function in relationship to the combatant commands. It is clear that our intelligence agencies cannot move towards partnership on their own. The post-9/11 battles among the counterterrorist center, the new Terrorism Threat Integration Center, the F.B.I., and the Department of Homeland Security over primacy in assessing the terrorist threat strongly suggest that we have regressed in our efforts to integrate . . . It is going to require strong presidential and Congressional leadership to achieve genuine reform. I ask unanimous consent that Mr. Leverett's entire article be printed in the Record. There being no objection, the material was ordered to be printed in the Record, as follows: [From the New York Times, July 9, 2004] Force Spies to Work Together (By Flynt Leverett) Washington.--Today, the Senate Intelligence Committee is expected to release its report on the prewar intelligence on Iraq. The document is likely to make clear that America's intelligence network, particularly the Central Intelligence Agency, badly needs repair. The Senate report will also show that America's intelligence shortcomings aren't going to be addressed simply by changing C.I.A. directors. As the report should make clear, our spy services both failed to do a thorough enough job watching Iraq's weapons programs and played down evidence that challenged the prevailing assumptions that the programs were active. In addition, analysts did not critically evaluate their sources of information; instead, they marshaled the available evidence to paint the picture that policymakers wanted to see. And how will President Bush and his administration respond to these findings? It's unlikely that they will do much of anything. After all, every independent panel that examined American post-cold-war intelligence--including President Bush's own Scowcroft commission--recognized that fundamental structural changes were needed in our intelligence services. Yet, the White House has remained steadfastly passive as critical problems have gone unaddressed. Meanwhile, administration loyalists have argued repeatedly that structural change is not needed to improve the community's performance, providing a politically comfortable rationale for the White House's inaction. In theory, the argument against radical reform might seem plausible. The director of Central Intelligence today has sufficient authority on paper to address many of the issues that will be identified in the Senate report, like the failure of collectors and analysts to share information about sources. But in practice, the C.I.A. has had a hard time breaking free from its culture of mediocrity. During my years in government at the C.I.A. and elsewhere, I was repeatedly told that the problems now publicly identified in the Senate report were going to be fixed. I remember years of discussion about the desirability of ``co-locating'' analysts and operations officers working on the same target--seeing to it that they had the equal access to information about their sources. But in the end, nothing was done to change old ways of doing business, setting the stage for the Iraq fiasco. The story, it seems, hasn't changed much. In February, for example, Jami Miscik, the agency's deputy director of intelligence, told C.I.A. analysts in a speech that the problems with information-sharing would be fixed within 30 days. It's July, and nothing has happened. Clearly, structural reform needs to go beyond the creation of a freestanding intelligence ``czar'' who would oversee the entire American spy network. We need to develop a model of ``jointness'' for the intelligence community, analogous to what the Goldwater-Nichols Act did for the uniformed military 18 years ago. That legislation made the chairman of the Joint Chiefs of Staff the principal military adviser to the president. It also mandated cross-service commands, defined regionally and functionally, as the operational chains of command for American military forces. This change produced real improvement in military performance. Before Goldwater-Nichols, too many modern military missions were characterized by disaster: the botched attempt to rescue hostages in Iran, the bombing of the Marine barracks in Lebanon, the operational problems that plagued the invasion of Grenada. Since Goldwater-Nichols required the armed services to collaborate, we have seen the successes of Panama, Operation Desert Storm and the outstanding battlefield performance of our forces in Afghanistan and Iraq. This model should be applied to American intelligence. This means moving away from the current organizational structure, defined primarily along disciplinary and agency lines. (The C.I.A.'s directorate of intelligence, for example, is responsible for all-source analysis; the directorate of operations is responsible for human intelligence collection; the National Security Agency is responsible for communications intelligence. Turf is sacred.) Instead, we should organize and deploy our resources against high-priority targets, including terrorism, weapons of mass destruction, China and problem states in the Middle East. Focused on a particular target, each group would draw on people and resources from across the intelligence community. These new target-based centers would report to a new national intelligence director, not to heads of individual agencies. Existing agencies would function primarily as providers of personnel and resources, much as the individual military services function in relation to the combatant commands. Certainly, there have been some tentative steps toward collaboration. The Counterterrorist Center and the Weapons Intelligence, Proliferation and Arms Control Center, both of which report to the director of Central Intelligence, reflect some of the logic of such cooperation. While the counterterrorist center wasn't inclusive enough to bring together information that might have stopped the 9/11 attacks, at least its analysts and operators are focused, in an integrated way, on their target. Still, it is clear that our intelligence agencies cannot move toward partnership on their own. The post-9/11 battles among the counterterrorist center, the new Terrorist Threat Integration Center, the F.B.I., and the Department of Homeland Security over primacy in assessing the terrorist threat strongly suggest that we have regressed in the effort to integrate. For its part, the arms control center was not independent enough of C.I.A. views to avoid being led toward a flawed analysis of the Iraqi arsenal. It is going to require strong presidential and Congressional leadership to achieve genuine reform. Thoughtful members on both sides of the aisle in both houses of Congress are already working on serious reform proposals, though nobody has yet had the courage to devise a Goldwater- Nichols Act for our spy agencies. In this context, the Bush administration's lack of initiative is inexplicable and unconscionable. There are those who argue that intelligence reform should not be taken up during a political season. They are wrong. This kind of reform can take place only in a political moment. We need a thorough discussion of the issue in the context of the current presidential campaign so that whoever is inaugurated in January has a mandate to break organizational pottery in order to save American lives. Mr. GRAHAM of Florida. The broad goal of ensuring that the Goldwater- Nichols model is applied to the intelligence community should be the top priority as we shape the organizational reforms in our pending legislation. It is my intention next week to speak to some specific organizational reforms which should be included in order to achieve this broader objective of a decentralized, joint, and nimble intelligence community, capable of responding to our emerging threats. Let me repeat Flynt Leverett's conclusion: It is going to require strong Presidential and congressional leadership to achieve genuine reform. That is our challenge. Next week, we will be tested as to whether we will be able and worthy to meet that challenge. I yield the floor and suggest the absence of a quorum. [[Page S9557]] The PRESIDING OFFICER. The clerk will call the roll. The bill clerk proceeded to call the roll. Mr. STEVENS. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. ____________________