UNCLASSIFIED

The Director of Central Intelligence
Washington, D.C. 20505

I am pleased to submit this year’s unclassified “Annual Report for the United States Intelligence Community” pursuant to the Intelligence Authorization Act for Fiscal Year 1997.

The Intelligence Community has had a successful year working collaboratively to provide a decisive information advantage to the President, the military, diplomats, the law enforcement community and the Congress. The Intelligence Community has spent much of this past year preparing for the future. In March 1999, the first DCI Strategic Intent was published setting forth goals/objectives for the Intelligence Community to meet the new and complex threats to our national security and establishing a comprehensive strategic planning process. We are taking seriously our commitment to prepare for future challenges in a corporate way.

I am proud of the contributions the men and women of the Intelligence Community have made in protecting our national security and appreciate the opportunity to share their contributions with Congress and the public.


Table of Contents


CONGRESSIONAL TASKING

This report responds to the Congressional request for an annual report on the Intelligence Community.

Section 109 of the National Security Act of 1947 (50 U.S.C. 404d) directs the President to submit an unclassified report “on the requirements of the United States for intelligence and the activities of the intelligence community.”


INTRODUCTION

The Intelligence Community Today

Nineteen hundred and ninety nine marked the end of a decade and a century, so it seems appropriate to note how far the Intelligence Community (IC) has evolved since its formal inception through the National Security Act of 1947. For more than fifty years, we have invested in an intelligence business which has grown in size and in capabilities, encompassing not only a vast network of human assets, but also a fleet of satellites, high-altitude reconnaissance aircraft and sophisticated listening posts around the world. Our country has been well-served by this effort, but the world has changed and the IC must change along with it. We have expended a considerable amount of energy this past year wrestling with how to balance the current demands on our systems while preparing for the future.

The security environment in which we live is dynamic and uncertain, replete with a host of ominous threats and challenges that have the potential to grow more deadly. To meet the challenges of this increasingly dangerous and complex world, our consumers are demanding more timely, accurate, and actionable information to inform their decisions and to take preventive measures, if necessary. The IC continues to pursue better, more lucrative collection methods and inter-connectivity enabling analysts to share information quickly and produce more timely and accurate assessments.


Our Vision

A unified Intelligence Community
optimized to provide a decisive information
advantage to the President, the military,
diplomats, the law enforcement community
and the Congress

DCI Strategic Intent March 1999


The Year in Review

Throughout 1999, the IC provided vital information on issues ranging from support to military operations in former Yugoslavia to support for environmental disaster relief. The Community has made a concerted effort to be more involved with its customers and most of our efforts are tailored to a specific customer request.

We were reminded this year that we must maintain our vigilance in areas that are considered routine or can fall into neglect. The accidental bombing of the Chinese Embassy in Belgrade was a painful wake-up call. It reminded us of the critical importance of keeping our data bases current. The discovery of a listening device in the State Department and security challenges at nuclear weapons labs has reinvigorated our attention on counterintelligence. The Community must improve its vigilance and take on the responsibility to prevent lapses in attention to these areas.

The accomplishments described in the following pages represent only a small sampling of the activities of the men and women of the IC. Thousands of intelligence reports are produced each day in response to a panoply of customer requirements. It is impossible to list every achievement, but the impressive outcomes affirm that our customers and the American people are getting a favorable return on their investment in the IC.


COMMUNITY MANAGEMENT

One of the pivotal goals for the Intelligence Community (IC) is to achieve a balance between working together as a Community to address critical national security needs and working independently as organizations to serve a given set of customers. The DCI's vision for the future demands closer teamwork across the IC and more efficient use of our capabilities to keep pace with the demands of law enforcement, diplomatic and military operations.

The Community’s customers are better served when agencies collaborate and work corporately toward shared goals. Our intelligence resources are optimized when competing requirements are evaluated across the community and not within each organization. We have made progress toward managing the IC as a kindred group of organizations, but much more work is needed to achieve the vision in the DCI Strategic Intent.

Strategic Planning

In March 1999, the DCI issued the Strategic Intent for the US Intelligence Community outlining a future strategy. It established a comprehensive strategic planning process for key functional areas as well as individual agencies. The DCI Strategic Intent describes five basic objectives for the Community.

The Office of the Deputy Director of Central Intelligence for Community Management (ODDCI/CM) and the Assistant Directors of Central Intelligence for Administration, Collection, and Analysis and Production have worked over the past year with the Community Management Staff to establish processes that improve community capabilities. Several of these efforts are described below.

Assistant Director of Central Intelligence for Administration

The Assistant Director of Central Intelligence for Administration (ADCI/A) was established by the FY 1997 Intelligence Authorization Act and serves as the deputy to the DDCI/CM.

The ADCI/A accomplished the following activities:

Assistant Director of Central Intelligence for Collection

The Assistant Director of Central Intelligence for Collection (ADCI/C) was established by the FY 1997 Intelligence Authorization Act and is responsible for ensuring the most efficient and effective collection of national intelligence.

The ADCI/C has initiated a series of activities that have produced substantial improvements in cross-discipline collection and that will optimize collection resources in FY 2000 and beyond.

Assistant Director of Central Intelligence for Analysis and Production

The Assistant Director of Central Intelligence for Analysis and Production (ADCI/AP) was also established by the FY 1997 Intelligence Authorization Act and is responsible for developing corporate strategies to improve the quality of analysis, meeting customers requirements, improving production management, addressing analytic gaps and shortfalls, and establishing processes for analytic requirements to drive collection.

To carry out the DCI’s vision within the analytic community, the ADCI/AP published the Strategic Direction for Intelligence Community Analysis. This document provides goals and specific objectives for the 11 member agencies and analytic organizations that comprise the National Intelligence Production Board (NIPB):

The ADCI/AP has begun implementing the DCI Strategic Intent by identifying concrete fiscal, policy, and procedural initiatives to achieve the analytic community’s required capabilities in the next five to ten years, and beyond. The Strategic Investment Plan for Intelligence Community Analysis will outline the plan of action and milestones to address the objectives across each of six core issues that the ADCI/AP has identified as areas for investment by the analytic community: intelligence priorities, customer support, technology, investing in people, interacting with collectors, and external analysis.

Community Management Staff

To improve corporate management of our intelligence resources as described in the Strategic Intent, the Community Management Staff (CMS) has taken the following steps:

Intelligence Community Chief Information Officer

The Intelligence Community Chief Information Officer (IC CIO) appointed by the DCI in 1998, has made significant strides in working with Community CIO’s and other Information Systems (IS) leaders to shape enabling information systems (IS) and technology in response to the DCI Strategic Intent. To meet the DCI’s vision of a unified Intelligence Community, the IC CIO, in partnership with the DoD, is guiding and coordinating the efforts of IC Agency CIOs to collectively support the DCI’s goals and those of his corporate Assistants for Collection and for Analysis Production. These business leaders envision new practices for the 21st Century that strengthen partnerships across the spectrum of the intelligence cycle, while creating greater synergy with the private sector and academia. This business vision requires technology providers to play a key role in ensuring an information edge for the nation’s leadership and military forces.

During this first year, the IC CIO implemented an improved governance process for decision making and oversight that engages senior IS leadership as a team. This process empowers both the IC CIO Executive Council and Working Council to systematically look across the enterprise to define Community requirements, drive the formulation of IS policy, define priorities and the pace of change, identify resourcing solutions by active engagement in the programming and budgeting process, and oversee implementation of Community IS. Working together to advance collaboration and interoperability, the IC CIO and the Councils developed specific goals in an IC IS Strategic Direction that defines a high level concept of operations for future Community information systems. They built an IC IS Capability Roadmap, which serves as their vehicle for describing and prioritizing requirements, guiding resource and policy decisions, and measuring progress. Using the Roadmap and a set of detailed action plans, signficant progress has been made to improve IT capabilities. The following are examples of accomplishments during 1999:


ACCOMPLISHMENTS

The security environment in which we live is dynamic and uncertain, replete with a host of threats and challenges that have the potential to grow more deadly. The Intelligence Community (IC) plays an important role in our national security strategy. It must maintain worldwide vigilance on the foreign threats to our citizens, infrastructure, and allies. In addition, Intelligence Community agencies are expected to inform policy makers of opportunities to advance US foreign policy objectives.

During FY 1999, the IC made critical and important contributions to advance our national security strategy. Thousands of intelligence reports are produced each day to support policy makers, law enforcement and military customers. This report includes only those achievements that can be described without risk to sensitive sources and methods.

The IC prioritizes its collection, processing and analysis resources according to customer requirements. This section lists accomplishments by the IC according to strategic priority, region of the world, transnational issues, and the various intelligence disciplines.

Strategic Priorities

China, Cuba, Iran, North Korea and Russia have been identified by US policy makers as strategic priorities for the IC. The following accomplishments are listed by country.

China

Cuba

North Korea

Russia

Regional Highlights

Multi-Regional

The following accomplishments cover more than one region of the world:

Central Europe

Africa

East Asia

Latin America

Middle East

Transnational Issues

These are threats that do not respect national borders and which often arise from non-state actors, such as terrorists and criminal organizations. They threaten US interests, values and citizens in the United States and abroad. The IC provides information to national and military customers on transnational threats such as international economic development, international organized crime, drug trafficking, and terrorism.

International Economic Developments

Intelligence can help identify threats to private US economic enterprises from foreign intelligence services as well as unfair business practices. Intelligence must also identify emerging threats that could affect the international economy and the stability of some nation states.

International Organized Crime

Corruption and extortion activities by organized crime groups can undermine the integrity of government and imperil fragile democracies. And the failure of governments to effectively control international crime rings within their borders – or their willingness to harbor international criminals – endangers global stability.

Presidential Decision Directive 42 (PDD-42) dated 22 October 1995, recognizes that international criminal enterprises move vast sums of illicitly derived money through the world’s financial systems, buy and sell narcotics and arms, and smuggle aliens, nuclear materials, and weapons of mass destruction. The IC targets all aspects of international criminal organizations from the leadership structure to the organization’s activities. The following are several intelligence achievements in our efforts to combat international organized crime.

Narcotics

The aim of the US drug control strategy is to cut illegal drug use and availability in the United States by 50 percent by 2007 – and reduce the health and social consequences of drug use and trafficking by 25 percent over the same period, through expanded prevention efforts, improved treatment programs, strengthened law enforcement and tougher interdiction. This strategy recognizes that, at home and abroad, prevention, treatment and economic alternatives must be integrated with intelligence collection, law enforcement and interdiction efforts.

Key issues for the IC include: cocaine and heroin trafficking organizations; leaders of narcotics trafficking organizations; infrastructure; smuggling routes and techniques; illicit drug shipments; host-nation counter-drug performance; drug cultivation, production, and processing; and international counterdrug cooperation. The following are IC achievements in the war against drugs:

Terrorism

The United States has made concerted efforts to deter and punish terrorists and remains determined to apprehend and bring justice to those who terrorize American citizens. The President signed PDD-62 in May 1998 creating a systematic approach to fighting the growing terrorist threat. Countering terrorism requires day-to-day coordination within the US Government and close cooperation with other governments and international organizations. The following describes how the intelligence community directly supports these efforts:

Proliferation

Efforts to control the proliferation of WMD and conventional weapons remains a high priority for the US Government. Through international treaties and other methods, the US aims to strengthen controls over weapons-grade fissile material and prevent the theft or diversion of WMD and related material and technology.

Counterintelligence

This past year has reminded us that the threat from foreign intelligence services is more diverse, complex, and difficult to counter than ever before. Counterintelligence provides an ability to protect sensitive national security information and to prevent the loss of critical technological, industrial, and commercial information. Counterintelligence efforts provide a comprehensive security program and constant evaluation of the intentions and targets of foreign intelligence services. Counterintelligence capabilities and programs also work to detect and neutralize the impact of espionage against US interests.

Intelligence depends on the adequacy of counterintelligence programs to provide warning and protective measures against both traditional espionage and non-traditional economic theft of US equities. Failure to protect our economic and security interests would impact America's prosperity at home and abroad. Awareness of the threat and adherence to prescribed personnel information and physical security standards and procedures based on risk management principles are critical.

The following lists some accomplishments the IC has achieved in this area:

DCI Strategy For The Future

In March 1999, the DCI Strategic Intent was published. The Strategic Intent represents the DCI’s vision for guiding the US Intelligence Community into the 21st Century.

The Strategic Intent challenges the NFIP agencies to break free of traditional ways of doing business to form a unified Intelligence Community that provides a decisive information advantage to the President, national policy makers, the military, diplomats, the law enforcement community, and the Congress. To achieve this vision, we must:

Unify the Community Through Collaborative Processes

Invest in People and Knowledge

Develop New Sources and Methods for Collection and Analysis

Adapt Security to the New Threat Environment

Improve Corporate Management


GLOSSARY

ACIC - Army Counter Intelligence Center. 
ACIS - Arms Control Intelligence Staff. 
ADCI/A&P - Assistant Director of Central Intelligence for Analysis and Production. 
ADCI/C - Assistant Director of Central Intelligence for Collection. 
AFOSI - Air Force Office of Special Investigations. 
ATAC - Anti-Terrorism Alert Center, Under NCIS. 
ATC - Applied Technology Center. 
ATO - Advanced Technology Office. 
BW - Biological Weapons. 
C3I - Command, Control, Communications, and Intelligence. 
CBJB - Congressional Budget Justification Book. 
CBW - Chemical and Biological Warfare. 
CCP - Consolidated Cryptologic Program. 
CI - Counterintelligence. 
CIA - Central Intelligence Agency. 
CIAP - Central Intelligence Agency Program. 
CIARDS - Central Intelligence Agency Retirement and Disability System. 
CINC - Commander in Chief. 
CI&SCM - Counterintelligence and Security Countermeasures. 
CIS - Commonwealth of Independent States. 
CITAC - Computer Investigations and Infrastructure Threat Assessment Center. 
CLANSIG - Clandestine Signals Intelligence. 
CMA - Community Management Account. 
CMO - Central MASINT Organization. 
CMS - Community Management Staff. 
CNC - Crime and Narcotics Center. 
COE - Common Operating Environment. 
COMINT - Communications Intelligence. 
CONUS - Continental United States. 
COSPO - Community Open Source Program Office. 
COTS - Commercial Off The Shelf. 
COVCOM - Covert Communications. 
CPCC - Community Personnel Coordinating Committee. 
CTBT - Comprehensive Test Ban Treaty. 
CT - Counterterrorism. 
CTC - Counterterrism Center. 
CW - Chemical Weapons. 
CWC - Chemical Weapons Convention. 
DAO - Defense Attache Office. 
DCI - Director of Central Intelligence. 
DCIIS - Defense Counterintelligence Integrated Information System. 
DDCI/CM - Deputy Director of Central Intelligence for Community Management. 
DDS - Defense Dissemination System. 
DHS - Defense HUMINT Service. 
DIA - Defense Intelligence Agency. 
DIAC - Defense Intelligence Analysis Center. 
DO - Directorate of Operations. 
DoD - Department of Defense. 
DoD/FCIP - Department of Defense Foreign Counterintelligence Program. 
DOE - Department of Energy. 
DSS - Defense Security Service. 
ELINT - Electronic Intelligence. 
ETF - Environmental Task Force. 
EXDIR/ICA - Executive Director/Intelligence Community Affairs. 
FBI - Federal Bureau of Investigation. 
FBI/FCI - Federal Bureau of Investigation Foreign Counterintelligence Program. 
FBI/SCM - Federal Bureau of Investigation Countermeasures Program. 
FIA - Future Imagery Architecture. 
FISA - Foreign Intelligence Surveillance Act. 
FIS - Foreign Intelligence Service. 
FBIS - Foreign Broadcast Information Service. 
FCI - Foreign Counterintelligence. 
FISINT - Foreign Instrumentation Signals Intelligence. 
FLC - Foreign Language Committee. 
FOIA - Freedom Of Information Act. 
FSU - Former Soviet Union. 
FYDP - Future Years Defense Program. 
GATT - General Agreement on Trade and Tariffs. 
GDIP - General Defense Intelligence Program. 
GSM - Global System for Mobile Communications. 
HF - High Frequency. 
HOCNET - HUMINT Operational Communications Network. 
HUMINT - Human Source Intelligence. 
IC - Intelligence Community. 
ICBM - Inter-Continental Ballistic Missile. 
IC CIO - Intelligence Community Chief Information Officer. 
IG - Inspector General. 
IO - Information Operations. 
IMINT - Imagery Intelligence and Geospatial Information. 
INR - Department of State Bureau of Intelligence and Research. 
IPRG - Intelligence Program Review Group. 
IW - Information Warfare. 
JCS - Joint Chiefs of Staff. 
JIC - Joint Intelligence Center. 
JIVA - Joint Intelligence Virtual Architecture. 
JMIP - Joint Military Intelligence Program. 
JTF - Joint Task Force. 
JTTF - Joint Terrorism Task Force. 
JWICS - Joint Worldwide Intelligence Communications System. 
MASINT - Measurement and Signature Intelligence. 
MBB - Mission Based Budgeting. 
NACIC - National Counterintelligence Center. 
NAFTA - North American Free Trade Agreement. 
NAIC - National Air Intelligence Center. 
NBC - Nuclear, Biological, Chemical weapons. 
NCIPB - National Counterintelligence Policy Board. 
NCIS - Naval Criminal Investigative Service. 
NDIC - National Drug Intelligence Center. 
NFIP - National Foreign Intelligence Program. 
NIC - National Intelligence Council. 
NICB - National Intelligence Collection Board. 
NIMA - National Imagery and Mapping Agency. 
NIMAP - National Imagery and Mapping Agency Program. 
NIPB - National Intelligence Producers Board. 
NIST - National Intelligence Support Team. 
NPC - Nonproliferation Center. 
NRO - National Reconnaissance Office. 
NRP - National Reconnaissance Program. 
NSA - National Security Agency. 
NSA/CSS - National Security Agency/Central Security Service. 
OMB - Office of Management and Budget. 
OPM - Office of Personnel Management. 
ORD - Office of Research and Development. 
OSIS - Open-Source Information System. 
PAEO - Program Assessment and Evaluation Office, Community Management Staff. 
PDD - Presidential Decision Directive. 
R&D - Research and Development. 
SAFE - Support to the Analysts’ File Environment. 
SIGINT - Signals intelligence. Intelligence information derived from all 
	communications intelligence, electronics intelligence, and foreign 
	instrumentation signals intelligence, however transmitted or collected. 
SLBM - Submarine Launched Ballistic Missile. 
SSO - Special Security Office/Officer. 
TECH ELINT - Technical Electronic Intelligence. 
TIARA - Tactical Intelligence and Related Activities. The military service 
	intelligence programs separate from the NFIP and (starting in FY 1996) 
	from the JMIP. 
UCA - Unified Cryptologic Architecture. 
USACOM - US Atlantic Command. 
USCENTCOM - US Central Command. 
USCS - US Cryptologic System. 
USEUCOM - US European Command. 
USFK - US Forces Korea. 
USIGS - US Imagery and Geospatial Information System. 
USPACOM - US Pacific Command. 
USSOCOM - US Special Operations Command. 
USSOUTHCOM - US Southern Command. 
USSPACECOM - US Space Command. 
USSS - US SIGINT System. 
USSTRATCOM - US Strategic Command. 
USTRANSCOM - US Transportation Command. 
WMD - Weapons of Mass Destruction.