(Signs directive, U.S. officials tell Congress)  (560)

By Wendy S. Ross

USIA Congressional Affairs Writer

Washington -- President Clinton has authorized significant changes in the

U.S. counterintelligence structure to foster closer cooperation among

concerned government departments and agencies, according to a group of U.S.


Central Intelligence Agency (CIA) Director James Woolsey, Federal Bureau of

Investigation (FBI) Director Louis Freeh and Deputy Assistant Attorney

General Jamie Gorelick told the Senate Select Committee on Intelligence May

3 that the authorization is contained in a new presidential directive.

The directive was not made public because it is classified as secret.

However, the National Security Council distributed a three-page

unclassified summary.

The new directive was deemed necessary in the wake of the Aldrich Ames spy

case, according to the U.S. officials, who point out that it includes

creation of a new National Counterintelligence Policy Board that will

report to the president through his national security adviser.  The

position of chairman will rotate every two years among the CIA, FBI and

1efense Department.

The directive "represents the best thinking of the entire intelligence

community," Gorelick said.

Woolsey said it "places the policy and coordinating machinery of

counterintelligence in the hands of the National Security Council itself."

He said he is "committed to seeing expanded cooperation between law

enforcement and intelligence," adding that "even one case of unnecessary

friction between the CIA and FBI is one the president and the Congress

should not tolerate and the nation cannot afford."

Expressing his satisfaction with the presidential directive, Freeh said that

it integrates the exchange of counterintelligence information at every

critical level.  "Our mission is to protect national security," and the

directive "gives us a working solution" by calling for the total

cooperation among agencies against our common enemies -- spies," he said.

The administration also has introduced legislation in Congress called the

Counterintelligence and Security Enhancements Act of 1994, the three

officials said, pointing out that it would give intelligence agencies more

authority to check out employees financial records.

The administration's bill "appears to be something that we can work with,"

said Intelligence Committee Chairman Dennis DeConcini.  But he noted that

the legislation does not deal with the relationship between the CIA and

FBI, leaving that to the presidential directive.

He and several other members of the committee said they thought it would be

better to put the directive into law, something the administration strongly


Also appearing before the committee were two of its former co-chairs,

Democratic Senator David Boren and Republican Senator William Cohen.

"It's ironic," Boren said, "that as the Cold War has worn down, the level of

espionage has gone up."

The president's directive is a "step in the right direction," but "this

committee can add to the positive work that's been done already," Boren

said.  The trick in forging legislation, he said, it to "catch the balance"

between being too suspicious and not suspicious enough, to balance the

constitutional rights of individuals with the need to strengthen national


The end of the Cold War did not mean the end of spying, Cohen said, adding

that "Mr. Ames should have quit the service and gone public" with his

criticism of the intelligence community.  Instead, Cohen pointed out, Ames

"chose to stay in the public service and betray his country."