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Publications of the Center for Security Policy
No. 99-F 39

SECURITY FORUM

23 December 1999

Security Meltdown at State Department Start at the Top
(Washington, D.C.): When Congress gets back to town next month, one of its
first agenda items had better be an inquiry into the Russian penetration of a
conference room on the State Department's sensitive executive seventh floor.
This is needed to understand the troubling particulars of the present case, but
also to explore the Clinton-Gore Administration's cavalier attitude towards
information, personnel and physical security practices that appears to have
contributed significantly to this debacle -- and perhaps to as-yet-unquantified
damage to other national security interests over the past seven years.

For example, the Russian "bug" affair offers insights into the Administration's
problematic handling of matters involving information and personnel security.
According to a an article by Jamie Dettmer that appeared recently in Insight
Magazine, U.S. counter-intelligence sought and secured the Secretary of State's
agreement not to "read-in" her deputy, Strobe Talbott, on their efforts to
determine the location of the Kremlin's listening device and to assess the
damage done prior to its discovery. Congress and the Nation need to know why
the State Department's Number 2 official -- a long-time Friend of Bill and
principal U.S. policy-maker on the former Soviet Union -- could not be trusted
with this information.

While they are at it, congressional investigators had better explore why the
Number 3 man, Under Secretary of State for Political Affairs Thomas Pickering,
personally intervened to stymie efforts made over a year ago by the
department's Diplomatic Security Bureau to tighten up building access
procedures. The Washington Post's David Ignatius reports in today's paper: "The
mandarins at State have never much liked the security people, viewing them as
gumshoes and right-wing zealots." Unfortunately, the chief mandarin -- Mrs.
Albright -- has herself exhibited similar contempt for those concerned with
physical security of diplomatic facilities, having ignored repeated requests
for additional protection for the U.S. Embassy in Nairobi prior to its
destruction by terrorists. How many more American lives and other, less
tangible equities will be needlessly sacrificed to the reckless attitudes of
Clinton appointees?

Insight Magazine, December 1999
News Alert!

Strobe Talbott and the Russian bug in the State Department: Why did the CIA
think Talbott was too close to the Russians?
By Jamie Dettmer

U.S. counterintelligence officers secured Secretary of State Madeleine
Albright's agreement last August to refrain from briefing her deputy, Strobe
Talbott - a onetime Moscow correspondent for Time magazine - about their
discovery of a sophisticated Russian eavesdropping device concealed in a
seventh-floor State Department conference room.

According to several U.S. intelligence and Justice Department sources, all of
whom spoke on the condition of anonymity, Talbot was kept out of the loop of
the security probe that led to the arrest outside the State Department on Dec.
8, 1999, of 54-year-old Russian intelligence officer Stanislav Borisovich
Gusev. "Talbott didn't need to know; it is as simple as that," says a Justice
Department source who declined to expound on the reasons why the Clinton
administration's main Russia expert was shut out.

A CIA source tells news alert!: "Talbott has long been widely seen at Langley
as being too close to the Russians - a sort of trusted friend, you might say."
According to that source, only Albright herself and Undersecretary of State
Thomas Pickering were kept fully briefed on the progress of a bug hunt
triggered when Gusev, the top technical intelligence officer in the Russian
Embassy, was spotted last summer by an FBI surveillance team wearing headphones
and loitering in his car and on foot on a weekly basis outside the department.
The FBI team suspected immediately that Gusev was receiving transmissions from
a bug. Talbot, they were afraid, inadvertently might let slip information about
the security probe.

FBI monitoring of the Russian and a bug hunt in the department led to the
discovery in August of the device - consisting of low-powered batteries, a
microphone, a recording mechanism and a line-of-sight transmitter. The device
was concealed in a wooden rail molding in the conference room used by the
Bureau of Oceans and International Environmental Scientific Affairs. When Gusev
was arrested, a remote-control antenna was found hidden in his car.

In the political flap since the arrest, State officials, including Albright,
have sought to dispel fears that the Russians could have gleaned sensitive
information from the bug. Intelligence sources take issue with all the
downplaying of the potential damage. They say there is a shortage of meeting
space on State's seventh floor, which includes Albright's suite, and that
conference rooms frequently are shared by other sections.

Further, sources say the eavesdropping device had directional-sound
capabilities and may have picked up noise from the offices of State's inspector
general and from the department's congressional-affairs section. The FBI also
is working under the assumption that where there is one bug, there could be
more.

The damage-assessment operation under way consists of trying to discover how
the bug was planted and whether the Russians had inside help; it is assumed
they did. According to former CIA officer Paul Redmond, concealing the bug
would have been time-consuming. "I've actually been involved in operations like
that. It's a very complicated matter. You actually have to go in several
times," he told NBC. As with other retired and current CIA officers, Redmond
criticizes the almost open-access policy granted to Russian diplomats by State.
More than 20 Russian diplomats were accorded the status of "visitors not
requiring an escort."

The timing of Gusev's arrest has prompted speculation that it was a tit-for-tat
response to the Russian arrest in Moscow on Nov. 30, 1999, of CIA operative
Cheri Leberknight. Neil Gallagher, assistant director of the FBI's national-
security division, insists Gusev's arrest was unrelated. But a U.S.
intelligence source tells news alert!: "In this business there's no such thing
as a coincidence. Working on that theory, one can also hazard maybe the
Russians themselves suspected Gusev was about to go down and went for
Leberknight as a preemptive strike - or maybe it was in retaliation for our
Chechnya criticisms."

NOTE: The Center's publications are intended to invigorate and enrich the
debate on foreign policy and defense issues. The views expressed do not
necessarily reflect those of all members of the Center's Board of Advisors.
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� 1988-1999, Center for Security Policy


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