THE WHITE HOUSE

                     Office of the Press Secretary

For Immediate Release                                        May 4, 1994


		 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
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 

     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 

     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 
     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 

     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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