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                           THE WHITE HOUSE

                     Office of the Press Secretary

________________________________________________________________________
For Immediate Release                                        May 4, 1994



		    STATEMENT BY THE PRESS SECRETARY


		 U.S. Counterintelligence Effectiveness


     President Clinton signed today a Presidential Decision Directive
on U.S. counterintelligence effectiveness to foster increased
cooperation, coordination and accountability among all U.S.
counterintelligence agencies.  The President has directed the creation
of a new national counterintelligence policy structure under the
auspices of the National Security Council.  In addition, he has
directed the creation of a new National Counterintelligence Center,
initially to be led by a senior executive of the Federal Bureau of
Investigation.  Finally, the President's Decision Directive requires
that exchange of senior managers between the CIA and the FBI to ensure
timely and close coordination between the intelligence and law
enforcement communities.

     The President's decision to take these significant steps of
restructuring U.S. counterintelligence policy and interagency
coordination, followed a Presidential Review of U.S.
counterintelligence in the wake of the Aldrich Ames espionage
investigation.  The President, in issuing this Directive, has taken
immediate steps to improve our ability to counter both traditional and
new threats to our nation's security in the post-Cold War era.

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                     FACT SHEET

        U.S. Counterintelligence Effectiveness


Many threats to the national security of the United States have been
significantly reduced by the break-up of the Soviet Union and the end
of the Cold War.  Core U.S. concepts -- democracy and market economics
-- are more broadly accepted around the world than ever before.
Nevertheless, recent events at home and abroad make clear that numerous
threats to our national interests --terrorism, proliferating weapons of
mass destruction, ethnic conflicts, sluggish economic growth --
continue to exist and must be effectively addressed.  In this context,
it is critical that the U.S. maintain a highly effective and
coordinated counterintelligence capability.

A review of U.S. counterintelligence effectiveness in the wake of the
Ames case highlights the need for improvements in the coordination of
our counterintelligence (CI) activities.  The recent DCI and Attorney
General Joint Task Force on Intelligence Community-Law Enforcement
Relations noted that changes to the basic underlying legal authorities
defining the relationship between the intelligence and law enforcement
communities are not required.  Rather, the task force concluded that
what is needed..."is for the two communities to improve their
understanding of their respective needs and operating practices...to
cooperate earlier, more closely, and more consistently on matters in
which they both have a separate but parallel interest."  This Directive
outlines specific steps which will be taken to achieve the objective of
improved cooperation.

Executive Order 12333 designates the National Security
Council (NSC) "as the highest Executive Branch entity
that provides review of, guidance for and direction to
the conduct of," among other things,
counterintelligence policies and programs.  Consistent
with E.O. 12333, the President directed the creation of
a new CI structure, under the direction
of the NSC, for the coordination of CI policy matters
in order to integrate more fully government-wide
counterintelligence capabilities, to foster greater
cooperation among the various departments and agencies
with CI responsibilities and to establish greater
accountability for the creation of CI policy and its
execution.  This new structure will ensure that all
relevant departments and agencies have a full and free
exchange of information necessary to achieve maximum
effectiveness of the U.S. counterintelligence effort,
consistent with U.S. law.

Nothing in this directive amends or changes the authorities and
responsibilities of the DCI, Secretary of Defense, Secretary of State,
Attorney General or Director of the FBI, as contained in the National
Security Act of 1947, other existing laws and E.O.  12333.

The following specific initiatives will be undertaken to improve U.S.
counterintelligence effectiveness:





     National Counterintelligence Policy Coordination

     o	A National Counterintelligence Policy Board
          (Policy Board) is hereby established and
          directed to report to the President through
          the Assistant to the President for National
          Security Affairs.  The existing CI policy and
          coordination structure, the National Advisory
          Group for Counterintelligence, is hereby
          abolished and its CI functions transferred to
          the Policy Board.

     o	  The Policy Board will consist of one senior
          executive representative each from DCI/CIA;
          the FBI; the Departments of Defense, State,
          and Justice; a Military Department CI
          component; and the NSC, Special Assistant to
          the President and Senior Director for
          Intelligence Programs.

     o	  The Chairman of the Policy Board will be
          designated by the DCI in consultation with
          the Assistant to the President for National
          Security Affairs.  The Chairman will serve
          for a period of two years.  The position of
          Chairman of the Policy Board will be rotated
          among   the CIA, FBI, and Department of
          Defense.

     o	  The Policy Board will consider, develop and
          recommend for implementation to the Assistant
          to the President for National Security
          Affairs policy and planning directives for
          U.S. counterintelligence.  The Policy Board
          will be the principal mechanism for reviewing
          and proposing to the NSC staff legislative
          initiatives and executive orders pertaining
          to U.S. counterintelligence.  This Board will
          coordinate the development of interagency
          agreements and resolve conflicts that may
          arise over the terms and implementation of
          these agreements.

     o    A National Counterintelligence Operations
          Board (Operations Board) will be established
          under the Policy Board with senior CI
          representatives from CIA, FBI, DOD, the
          Military Department CI components, NSA,
          State, Justice, and Chief of the National CI
          Center established below.

     o	  The Chairman of the Operations Board will be
          appointed by the Policy Board from among the
          CIA, FBI, or DOD, and rotated every two
          years.  The Chairmanship of the Policy Board
          and the Operations Board will not be held by
          the same agency at any one time.  The
          Operations Board will discuss and develop
          from an operational perspective matters to be
          considered or already under consideration by
          the Policy Board.  It will oversee all
          coordinating subgroups, resolve specific
          conflicts concerning CI operations and
          investigations and identify potential CI
          policy conflicts for referral to the Policy
          Board.


     Counterintelligence Integration and Cooperation

     o	  The Policy Board, with the assistance of the
          DCI and the cooperation of the Director of
          the FBI, the Secretary of Defense, and the
          Secretary of State, will establish a National
          Counterintelligence Center within 90 days of
          this directive.

     o	  A senior FBI executive with CI operational
          and management experience will serve as the
          Chief of the National CI Center and a senior
          Military Department CI component executive
          will serve as the Deputy Chief of the
          National CI Center.  These agencies will hold
          these positions for an initial period of 4
          years, afterwhich, with the approval of the
          National CI Policy Board and in consultation
          with the Assistant to the President for
          National Security Affairs, the leadership
          positions will rotate, for 2 year terms,
          among the FBI, DOD and CIA.  At all such
          times that the FBI does not hold the position
          of Chief, it will hold the position of Deputy
          Chief.

     o 	  The National Counterintelligence Center will
          be located, staffed and initially structured
          as recommended in PRD-44.

     o	  The National Counterintelligence Center will
          implement interagency CI activities as
          described in PRD-44 and report to the Policy
          Board.

     o	  The National Counterintelligence Center will
          serve as the interagency forum for
          complementary activities among CI agencies.
          The CIA's Counterintelligence Center will
          serve as the CI component for the CIA and
          execute on behalf of the DCI his authorities
          to coordinate all U.S. counterintelligence
          activities overseas.

     o	  The Chief of the CIA's Counterintelligence
          Center Counterespionage Group will be
          permanently staffed by a senior executive
          from the FBI.

     o	  CIA counterintelligence officers will
          permanently staff appropriate management
          positions in the FBI's National Security
          Division and/or FBI Field Offices.

     The Policy Board will be responsible for the
     regular monitoring and review of the integration
     and coordination of U.S. counterintelligence
     programs.  The Policy Board will provide an annual
     report to the Assistant to the President for
     National Security Affairs and on US
     counterintelligence effectiveness.

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