TITLE:WOOLSEY: INTELLIGENCE CRUCIAL IN POST-COLD WAR WORLD (03/09/93)
WOOLSEY: INTELLIGENCE CRUCIAL IN POST-COLD WAR WORLD
(Sees role in improving economic security) (370)
By Paul Malamud
USIA Staff Writer
1ashington -- The new director of Central Intelligence, James Woolsey,
urged members of Congress March 9 to proceed slowly with intelligence
budget cuts, warning that the United States still needs a first-rate
intelligence capacity to survive in an increasingly fragmented world.
"It is important (to) warn of threats" including threats to "important
aspects of our economic well-being," he emphasized, stressing that "the
intelligence community has something to offer in terms of improving our
While "the risk of a full-scale nuclear exchange with one power...is
effectively gone" due to the end of the Cold War, in a "number of
ways...our safety and security may be endangered (by) a more demanding
problem for intelligence than existed before" due to the complexity of the
post-Cold War world, Woolsey said. "The situation now," he noted "is much
In response to questions by members of the House Intelligence Committee
following his prepared statement, Woolsey conceded that the CIA does not
need to do "things that can be done efficiently and effectively" by other
government agencies. But he stressed that the United States still needs
"human resources...signals intelligence (and) imagery" information to warn
policymakers of impending trouble and to provide input for an effective
Woolsey told the legislators that the intelligence community will attempt to
streamline operations by using "satellite resources" more efficiently, by
simplifying the "classification and security system" and by consolidating
physical facilities where possible.
Asked whether the United States, under the Clinton administration, will
engage in industrial espionage, Woolsey said that that practice is "fraught
with legal and foreign policy difficulties."
Woolsey emphasized that the "existing policy" is "not to conduct industrial
espionage on behalf of American corporations." However, he added that
"economic intelligence broadly described is very important to the United
States" in such areas as "general economic trends...effectiveness of
sanctions" and the examination of "new technologies" that have both
civilian and military potential.
Woolsey noted that some "friends and allies of the United States" engage in
outright industrial espionage against U.S. corporations and in addition
bribe third parties to award them -- rather than U.S. firms -- with
valuable contracts. Woolsey said the United States was "relatively gentle
about this" during the Cold War, but he added that if the Clinton
administration decides the time has come to be "considerably more forceful
and effective" in combating these practices, "I will approach that subject
with particular vigor."
Woolsey commented that the CIA is "increasingly involved" in tracking
worldwide the flow of illicit funds used by terrorists and drug
traffickers. He added that "We are working very hard on the international
aspects" of the World Trade Center bombing.
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