AGENCY JOSTLING DELAYS STANDARDIZED SECURITY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000500970001-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: January 10, 2013
• Sequence Number: 1
• Publication Date: November 1, 1988
• Content Type: REPORT

1
Declassified and Approved For Release 2013/01/10 : CIA-RDP90-00530R000500970001-5
ency Jostfitig Delays Stalklardized Secu
By Walter Pincus
Washington Post Staff Writer
Despite calling for tighter se-
curity in the wake of recent spy
cases, President Reagan for two
years has resisted issuing an ex-
ecutive order to force U.S. intel-
ligence agencies to adopt a single
standard background investigation
for top secret and higher security
clearances, according td adminis-
tration and congressional sources.
At the same time, a House in-
telligence subcommittee has crit-
icized the administration's failure
? to introduce tougher security pro-
cedures and proposed some of its
own.
These include widening the
grounds for rejecting clearance for
people because of "drug abuse, al-
coholism, a criminal record or psy-
chiatric problems" to include judg-
ments about a person's "integrity
and character."
The panel also proposed that
background investigators probe
the "financial vulnerability" of
those already cleared, by rh..,-1,;ng
computerized lists of casino trans-
actions, currency transactions, and
foreign bank and financial ac-
counts
The executive order, drafted in
response to a 1983 presidential di-
rective and five years in the mak-
ing, was designed to set uniform
criteria for initial background in-
vestigations, the granting of clear-
ances and reinvestigations by the
Defense Department, Central In-
telligence Agency and Federal Bu-
reau of Investigation, sources said.
But the agencies are tangled in
a fight over which of them would
oversee the new system, sources
said.
"The CIA does not want anyone
looking over their shoulder," a
congressional source said.
Meanwhile, the source said, "No
one in the White House has been
willing to make a decision" to set-
tle the disagreement. An admin-
istration official, asking- not to be
identified, agreed with that view.
The source added that because
"tuatter, is considered too con-
. with,* no White
House decision is expected before
Election Day and perhaps not be-
fore a new president takes office.
As of now, the intelligence
agencies carry out different types
of background investigations and
apply different standards in mak-
ing decisions on who will be
cleared and who will not.
Failure to implement a common
security policy was criticized by
the House intelligence subcommit-
tee.
"Turf consciousness and resis-
tance to centralization long have
plagued the U.S. counterintelli-
gence community and continue to
impede consideration and imple-
mentation of different methods of
organization," the subcommittee
said in a recent report.
The issue of tougher back-
ground checks comes at a time
when budgets for personnel secu-
rity activities have been cut.
At the Pentagon, where 2.8 mil-
lion individuals have security
clearances, the budget for the De-
fense Investigative Service, which
does security investigations, was
cut $9 million this year, requiring
a 13.1 percent cut in personnel,
according to the House report..."
"This action has resulted in the
discontinuance of training and the
loss of experienced personnel to
early retirement," the report con-
cluded.
Inability to get people cleared
has begun to limit some new Pen-
tagon hiring, according to Defense
Department sources.
The lack of White House action
to resolve the issue is in sharp
contrast to Reagan's assertion five
years ago that "safeguarding
against unlawful disclosures of
properly classified information is a
matter of grave concern and high
priority for this administration."
In a national security decision
directive released in March 1983,
Reagan ordered the Justice De-
partment to come up with a new
executive order establishing com-
mon standards for security clear-
ances.
A three-year study resulted in
the 1986 draft order, which was
forwarded to the White House
where it has remained unfinished
for two years.
ti
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Declassified and Approved For Release 2013/01/10: CIA-RDP90-00530R000500970001-5
The House intelligence panel
said in its report that the order,
which "would require increased ef-
forts by the Defense Investigative
Service and other agencies in the
scope and frequency of their back-
ground investigations" is "awaiting
action at the National Security
Council."
The House subcommittee,
which has done a yearlong inquiry
of its own, declared that "the rec-
ord of past espionage cases illus-
trates that the current [security]
investigations process fails dismal-
ly" in locating potential security
risks.
The subcommittee complained
that 99 percent of those seeking
Defense Department clearances
"are granted initial or continued
access" because "in many in-
stances, adjudication criteria and
guidance are not being followed."
A lack of selectivity, the report
said, also took place because "dif-
ficult issues of integrity and char--
acter are avoided."
The subcommittee members
THE WASHINGTON
who insisted on that language g
no indication in the report h
such abstract judgments could
made.
They noted, however, t'
there was no central collection
the Pentagon "indicating the r
sons given for denial or revocat
of clearances."
They also criticized the fail'
of the military services to cow
idate adjudication of cases, poi
ing out that the Navy was "I
fully on line" and "numerous
fense agencies continue to re:
this concept, largely, it appea
for bureaucratic turf reasons."
Periodic reinvestigation of
dividuals with top secret and hii
er classifications are required
ery five years after initial empl,
ment but the lack of investigati
has caused backlogs expected
last until 1990, according to 1
subcommittee.
As of May 1988, the Pentai
had a "backlog of 101,000 perio
teinveStigations,* according to
? report One solution proposed
the aubconunittee was to reinv
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Declassified and Approved For Release 2013/01/10: CIA-RDP90-00530R000500970001-5
tandardiAd Security Cffecks
T House intelligence panel
said in s report that the order,
which "w? Id require increased ef-
forts by the I efense Investigative
Service and o r agencies in the
cope and freque of their back-
ground investigatio "is "awaiting
action at the Natio Security
Council."
The House subcom ittee,
which has done a yearlong in iry,
of its own, declared that "the r
ord of past espionage cases illus
trates that the current [security]
investigations process fails dismal-
ly" in locating potential security
risks.
The subcommittee complai
that 99 percent of those se
Defense Department cle
"are granted initial or
access" because "in
stances, adjudicatio
guidance are not b
A lack of sele
said, also tno
fleit issue
acter are
:The
ng
ances
ntinued
any in-
criteria and
g followed."
wity, the report
Ike because adif-
integrity and ch4-';
miled.":?1
ficonimittee members '
, .
t
THE WASHINGTON POST
who insisted on that language gave
no indication in the report ow
such abstract judgments c ? d be
made.
They noted, how er, that
there was no centrcollection in
the Pentagon "in a ating the rea-
sons given for d 'al or revocation
of clearances."
They als criticized the failure
of the mi ary services to consol-
idate a ? dication of cases, point-
ing that the Navy was "not
ful on line" and "numerous de-
se agencies continue to resist
s concept, largely, it appears,
.ureaucratic turf reasons."
- reinvestigation of in-
with top secret and high-
cations are required ev-
rs after initial employ-
lack of investigators
klogs expected to
according to the
fo ;odic
dividu
er class
ery five y
ment but th
has caused
last until 199
subcommittee.
As?of May 198
had a "backlog of 1
?reinveatigations," acc
report,. One solution
the subitiminittee was
the Pentagon
000 periodic
g to the
posed by
reinves-
I
6
tigate on a random basis, and not.
wait for the five-year term to pass ?
for individuals who might have
given indications they could be
troublesome.
The subcommittee also focused
on post-employment security be-
cause of espionage cases that
arose in the cases of former CIA
agent Edward Lee Howard, Na-
tional Security Agency analyst
Ronald Pelton and Navy veteran
John A. Walker Jr.
While noting that more than .
300,000 individuals left the Pen-,,
tagon in 1987 alone, the panel -
concluded that "some protection
must be pursued given the severe -
damage which can be inflicted by a
former employee with highly sen-
sitive program knowledge."
In the Howard case, a new
agent being prepared to work in
Moscow was discharged after he
failed a lie-detector case.
He subsequently sold informa- ?
tion on U.S. spies in the Soviet
Union to the KGB. Eventually, he
was identified to U.S. intelligence?
by a Soviet defector but was able
to flee the country and now lives in
Moscow.
In the wake of Howard's defec-
tion, the CIA has introduced a
number of steps to prevent it from
happening again, according to the
subcommittee.
These include making a "coun-
terintelligence risk assessment"
before terminating any employee;
counseling employees who leave;
and creating an agency Counter-
intelligence Center to consolidate
those functions.
The subcommittee also re-
ported that its requested investi-
gation by the CIA into revelations
made in Washington Post reporter
Bob Woodward's book "Veil" had
turned up "no hard evidence" that
an individual in the agency provid-
ed classified information. One CIA
witness testified, however, "I don't
think there is a question. . . . I
think it came from within the
agency. There is no question
about that."
"To date," another CIA official
testified, "we have' not devised a
way to deal promptly and ,effeco-;
tively with people who have vioo.
bted the trust reposed in them." -
'
r - '
ft
Declassified and Approved For Release 2013/01/10: CIA-RDP90-00530R000500970001-5.