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+[House Hearing, 108 Congress] +[From the U.S. Government Publishing Office] + + + + DEPARTMENT OF HOMELAND SECURITY + PROPOSED INFORMATION ANALYSIS + BUDGET FOR FISCAL YEAR 2005 + +======================================================================= + + HEARING + + of the + + SUBCOMMITTEE ON INTELLIGENCE + AND COUNTERRORISM + + before the + + SELECT COMMITTEE ON HOMELAND SECURITY + HOUSE OF REPRESENTATIVES + + ONE HUNDRED EIGHTH CONGRESS + + SECOND SESSION + + __________ + + MARCH 10, 2004 + + __________ + + Serial No. 108-40 + + __________ + + Printed for the use of the Select Committee on Homeland Security + + + Available via the World Wide Web: http://www.access.gpo.gov/congress/ + house + + __________ + + U.S. GOVERNMENT PRINTING OFFICE +22-641 WASHINGTON : 2005 +_____________________________________________________________________________ +For Sale by the Superintendent of Documents, U.S. Government Printing Office +Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 +Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�0900012005 + + + SELECT COMMITTEE ON HOMELAND SECURITY + + + + Christopher Cox, California, Chairman + +Jennifer Dunn, Washington Jim Turner, Texas, Ranking Member +C.W. Bill Young, Florida Bennie G. Thompson, Mississippi +Don Young, Alaska Loretta Sanchez, California +F. James Sensenbrenner, Jr., Edward J. Markey, Massachusetts +Wisconsin Norman D. Dicks, Washington +W.J. (Billy) Tauzin, Louisiana Barney Frank, Massachusetts +David Dreier, California Jane Harman, California +Duncan Hunter, California Benjamin L. Cardin, Maryland +Harold Rogers, Kentucky Louise McIntosh Slaughter, New +Sherwood Boehlert, New York York +Lamar S. Smith, Texas Peter A. DeFazio, Oregon +Curt Weldon, Pennsylvania Nita M. Lowey, New York +Christopher Shays, Connecticut Robert E. Andrews, New Jersey +Porter J. Goss, Florida Eleanor Holmes Norton, District of +Dave Camp, Michigan Columbia +Lincoln Diaz-Balart, Florida Zoe Lofgren, California +Bob Goodlatte, Virginia Karen McCarthy, Missouri +Ernest J. Istook, Jr., Oklahoma Sheila Jackson-Lee, Texas +Peter T. King, New York Bill Pascrell, Jr., North Carolina +John Linder, Georgia Donna M. Christensen, U.S. Virgin +John B. Shadegg, Arizona Islands +Mark E. Souder, Indiana Bob Etheridge, North Carolina +Mac Thornberry, Texas Ken Lucas, Kentucky +Jim Gibbons, Nevada James R. Langevin, Rhode Island +Kay Granger, Texas Kendrick B. Meek, Florida +Pete Sessions, Texas +John E. Sweeney, New York + + John Gannon, Chief of Staff + + Stephen DeVine, Deputy Staff Director and General Counsel + + Thomas Dilenge, Chief Counsel and Policy Director + + David H. Schanzer, Democrat Staff Director + + Mark T. Magee, Democrat Deputy Staff Director + + Michael S. Twinchek, Chief Clerk + + ______ + + Subcommittee on Intelligence and Counterterrorism + + Jim Gibbons, Nevada, Chairman + +John Sweeney, New York, Vice Karen McCarthy, Missouri +Chairman Edward J. Markey, Massachusetts +Jennifer Dunn, Washington Norman D. Dicks, Washington +C.W. Bill Young, Florida Barney Frank, Massachusetts +Harold Rogers, Kentucky Jane Harman, California +Christopher Shays, Connecticut Nita M. Lowey, New York +Lamar Smith, Texas Robert E. Andrews, New Jersey +Porter Goss, Florida Eleanor Holmes Norton, District of +Peter King, New York Columbia +John Linder, Georgia James R. Langevin, Rhode Island +John Shadegg, Arizona Kendrick B. Meek, Florida +Mac Thornberry, Texas Jim Turner, Texas, Ex Officio +Christopher Cox, California, Ex +Officio + + (II) + C O N T E N T S + + ---------- + Page + + STATEMENTS + +The Honorable Jim Gibbons, a Representative in Congress From the + State of Nevada, and Chairman, Subcommittee on Intelligence and + Counterrorism.................................................. 1 +The Honorable Karen McCarthy, a Representative in Congress From + the State of Missouri, Ranking Member, Subcommittee on + Intelligence and Counterrorism + Oral Statement................................................. 9 + Prepared Statement............................................. 2 +The Honorable Christopher Cox, a Representative in Congress From + the State of California, and Chairman, Select Committee on + Homeland Security.............................................. 15 +The Honorable Jim Turner, a Representative in Congress From the + State of Texas, Ranking Member, Select Committee on Homeland + Security + Oral Statement................................................. 13 + Prepared Statement............................................. 3 +The Honorable Donna M. Christensen, a Delegate in Congress From + the U.S. Virgin Islands........................................ 17 +The Honorable Jennifer Dunn, a Representative in Congress From + the State of Washington........................................ 11 +The Honorable Edward J. Markey, a Representative in Congress From + the State of Massachusetts..................................... 21 +The Honorable Kendrick B. Meek, a Representative in Congress From + the State of Florida........................................... 25 +The Honorable Eleanor Holmes Norton, a Delegate in Congress From + the District of Columbia....................................... 27 +The Honorable Christopher Shays, a Representative in Congress + From the State Connecticut..................................... 19 +The Honorable John E. Sweeney, a Representative in Congress From + the State of New York.......................................... 23 + + WITNESS + +General Patrick Hughes, Assistant Secretary for Information + Analysis, + Department of Homeland Security + Oral Statement................................................. 4 + Prepared Statement............................................. 5 + + APPENDIX + Material Submitted for the Record + +Questions from The Honorable Jim Turner for General Patrick + Hughes......................................................... 33 + + + THE DEPARTMENT OF HOMELAND + SECURITY PROPOSED INFORMATION + ANALYSIS BUDGET FOR FISCAL YEAR 2005 + + ---------- + + + Wednesday, March 10, 2004 + + House of Representatives, + Subcommittee on Intelligence and Counterterrorism, + Select Committee on Homeland Security, + Washington, DC. + The subcommittee met, pursuant to call, at 10:55 a.m., in +Room 2141, Rayburn House Office Building, Hon. Jim Gibbons +[chairman of the subcommittee] presiding. + Present: Representatives Gibbons, Sweeney, Dunn, Shays, +King, Thornberry, Cox (ex officio), McCarthy, Markey, (Del.) +Norton, Meek, and Turner (ex officio). + Also Present: Delegate Christensen. + Mr. Gibbons. The Subcommittee on Intelligence and +Counterterrorism will come to order. The subcommittee is +meeting today to hear testimony on the Department of Homeland +Security's proposed information analysis budget for fiscal year +2005. + General Patrick Hughes, Assistant Secretary For Information +Analysis, is with us today. Thank you, General, for being here. +We look forward to your testimony. I ask unanimous consent that +members' statements be included in the hearing record and +encourage members of the subcommittee to submit their opening +statements for the record. + I also ask unanimous consent that Ms. Christensen, who is +not a member of this subcommittee, be allowed to sit and ask +questions. Without objection so ordered. + Pursuant to the committee's rules, any member waiving their +opening statement will have an additional 3 minutes for +questions. The members of the committee may also have some +additional questions, and we will ask you to respond to these +in writing. The hearing record will be held open for 10 days. + I want also to let members know that we plan to proceed in +open session this morning for taking testimony and questioning, +and it is further my hope that we will be able to explore +issues of concern without the need to close the hearing to the +public. + However, if it becomes necessary to discuss classified +information, we will at an appropriate time take all necessary +steps to close the hearing and proceed in executive session. + I now recognize myself for an opening statement. + General Hughes, once again, thank you for being here today. + Your role in the Department is critical for the success of +our homeland security efforts over the last few years. We have +heard a lot about connecting the dots so that, we are sure that +all of the intelligence information that we process is brought +together in one big picture. + The Office of Information Analysis has a difficult task of +ensuring that relevant information about terrorist threats to +the homeland gets where it needs to go and gets there quickly. +Without intelligence, and the talented men and women who make +intelligence their business, we are blind to the intentions of +our enemies. However, knowing your enemy is simply not enough. +he information that we process must be brought together, +analyzed and disseminated to the people on the front lines +protecting our Nation from harm. + Because protection is so highly dependent on intelligence, +I find it appropriate that in your budget submission it is +difficult to determine where information analysis ends and +infrastructure protection begins. + While this level of interdependence is appropriate, I hope +you will be able to draw some lines for us here today so that +we may more clearly see how your office fits into the big +picture. + I look forward to your testimony and to hearing how we can +help you accomplish your goals for the coming year. + When Ms. McCarthy arrives, we will offer her an opportunity +for an opening statement. Until that point in time, is there +any other member who wishes to make an opening statement? +Seeing none. + +Prepared Statement of the Honorable Karen McCarthy, a Representative in + Congress From the State of Missouri, and Ranking Member, Subcommittee + on Intelligence and Counterterrorism + + Thank you Mr. Chairman, thank you Assistant Secretary Hughes for +taking us through the Fiscal Year 2005 budget submission for the +Information Analysis and Infrastructure Protection Directorate Budget +(IAIP). + Last week, Under Secretary Libutti testified before a joint hearing +of the Subcommittee on Intelligence and Counterterrorism and the +Subcommittee on Infrastructure Protection and Border Security. I raised +a number of issues with him that I would also like you to address +today, hopefully in more detail, concerning the Department's real-time +ability to assess threats to the homeland. This morning, we are +interested in hearing about ongoing efforts to improve the depth and +breadth of intelligence analysis at the Directorate, as well as the +connectivity among all key units across government doing similar +analysis. + Where are the existing gaps and weaknesses and what can our +Committee do to help your office solve these problems rapidly in +authorizing legislation that we expect to pass and enact later in the +year? Also, what is the time frame within the coming fiscal year for +showing results? Hopefully you can cover all this ground this morning. + Mr. Secretary, it would also be my hope that you will cast light on +what is being done to speed the issuing of information warnings and +advisories to state and local officials, and to improve the quality of +those communications so that businesses, schools, churches and families +across America have the best guidance in hand from the federal +government when the threat level rises. + Secretary Ridge's announcement on March 1 of a new initiative, the +Homeland Security Information Network, heads us in the right direction +by creating a comprehensive, computer based counterterrorism +communications system to all 50 states and 50 major urban centers. The +Department has the right idea to strengthen the quality and flow of +threat information. Now we'll need to assure that there is sufficient +follow through. + If there is one universal cry from constituent groups, it is the +need for DHS to provide timely and actionable information sharing +between the federal agencies and state and local agencies, who look to +the Department for reliable and accurate information concerning +terrorist threats in local communities all across America. + Tim Daniel, the Director of the State of Missouri Office of +Homeland Security, tells me that information sharing needs to go both +ways. When Missouri state and local officials have information +concerning possible terrorist activities, they need to know not only +who to contact at the federal level, but also that state information +will be considered in a timely way. The feedback loop is still under +construction. Mr. Secretary, I would welcome your wisdom on how best to +complete this information loop. + Since we're primarily focused today on the dissecting the +Directorate budget, it would be helpful to have a clearer understanding +of how many dollars are dedicated toward information sharing with +localities and communities. The Homeland Security Operations Center is +receiving a big plus up of funds, $10 million, in part to undergird the +``implementation of national systems for information sharing'' and I +would appreciate your sharing with the committee a Directorate-wide +breakdown on how funds are actually expended for information sharing +purposes. + It would be useful to hear a broader explanation, too, of where and +how time is lost in the process of forwarding important real-time +intelligence threat information to first responders. The First +Responders in the Fifth District of Missouri and all around the U.S. +need timely and actionable information from the federal government now. +Mr. Secretary, please share your plans for enhancing communication at +all levels and working to provide our local communities with the +resources they need to respond to emergency situations. I hope you will +provide more information on this topic so our Committee has a better +sense of how to fix this nationwide dilemma. + A separate policy matter slow to develop involves IAIP completing a +comprehensive threat and vulnerability assessment to guide spending +priorities. In releasing our one year anniversary report last week, the +Committee emphasized the need to have this blueprint in place, +regardless of the cost, by October 1, 2004, and I'd simply like to +reiterate that point with our distinguished panelists. Mr. Secretary, +how realistic is our goal? + Let me close by saying that I have a deep appreciation I have for +the work you are doing. Obtaining usable intelligence in order to +protect the homeland is a mammoth responsibility given the many +different avenues that exist for attacking our infrastructure. We are +supportive of your intentions, efforts and long-term goals, and will +continue, in a bipartisan way, to be a good faith partner in helping +you close the security gaps facing our nation. + Thank you. + + Prepared Statement of the Honorable Jim Turner, a Representative in + Congress From the State of Texas + + Good morning, General Hughes. + We are pleased to have you with us today. Your mission of +identifying, assessing and mapping threats to the homeland is crucial, +and we thank you for agreeing to lay aside the comforts of semi-retired +life, after 37 years of distinguished military service, to serve our +country once again. + We had a good give and take with your boss last week, General +Libutti. Today we would like to pick right up with you and talk about +the relevance and effectiveness of the Directorate's intelligence +analysis given the existence of the Terrorist Threat Integration Center +and other units doing similar work. The Directorate has faced criticism +from Congress, the Century Foundation, the Heritage Foundation and +others that it is just a junior partner in the analysis process given +the emphasis and focus on TTIC, the CIA's existing Directorate of +Intelligence and the military intelligence agencies. We would like to +hear you clarify the roles, responsibilities and authorities of your +unit and how it differs from the others. + In addition, two and one half years after 9/11, it is a good time +to take stock of the government's efforts to do a better job of +``connecting the dots'' in our intelligence analysis. We have seen the +rapid creation of numerous new organizations--TTIC, IAIP, DoD's +Northern Command, the FBI's Terrorist Tracking Task Force--to name a +few. + To avoid repeating bureaucratic mistakes of the past, though, there +ought to be a clear delineation of what your office is doing and the +formal analytic interplay between IAIP, TTIC and other related +organizations. The left hand needs to know what the right hand is +doing, and that begins with a formal, clear, understandable structure +to government-wide intelligence analysis. The plan ought to be in +writing so there is a common understanding and so organizations can be +held accountable. Right now we simply don't have that in place. + Now let me offer some constructive criticism in a number of other +areas. + First, I am concerned that the practice of not sharing information +within the Intelligence Community continues to be a problem. For +example, 1 would be interested to know whether your office receives +intelligence from DoD Special Access Programs relating to the terrorist +threat? And with this new, hard push underway to locate Osama Bin +Laden, I can only assume that sensitive covert operations are part of +the effort. Are you regularly provided intelligence information +attained through worldwide covert operations? In short we need +assurance that you have access to absolutely all information the U.S. +government has related to terrorism. If you have any doubt about that, +we need to hear about it today. + Second, an important part of IAIP's mission is to receive the same +intelligence data as TTIC and other organizations but to review and +analyze it in a different way to ensure that we are thinking ``outside +of the box''. Al-Qa`eda and others are considering creative and new +means for attacking us, so IAIP is responsible for doing that cutting +edge analysis that keeps us one step ahead of Osama bin Laden. + My questions is how vigorously is the Department pursuing this +competitive intelligence analysis? If you could note some concrete +examples of how your analysts have seen things differently than others +in the Intelligence Community, that would assure us that this work is +underway. + And on the same subject a Department organizational chart indicates +that the JAIP Under Secretary's Chief of Staff is in charge of the +Competitive Analysis and Evaluation Office. I would have thought that +your office, General Hughes, particularly since you're the individual +with the most senior intelligence experience in the Directorate, +handled these matters. So I'm concerned that poor organization with the +Directorate could be hampering this critical function. + Third, in closed session we'd appreciate hearing your thoughts on +the extent and effectiveness of Al-Qa`eda operatives working inside the +United States. We know they're actively recruiting individuals of non +Middle Eastern extraction to blend into U.S. crowds. What about their +logistics, financing, training, and attack planning--how boldly are +they moving ahead? + Finally, let me comment about your responsibility to map threats +against our vulnerabilities. Part of the Directorate's mission, as you +know, is to identify threats as they relate to vital U.S. +infrastructure, sites and potential targets. But General Libutti +indicated last week that the Directorate is some time away from +completing a national risk assessment. Since the vulnerabilities have +not been determined, then it obviously prevents you and others from +mapping threats against those key targets. I would submit that we have +a long way to go in fulfilling this basic mission and ought to pick up +the pace to complete it. + Let me end by saying thank you, again, General, for appearing +before the Committee today. I look forward to hearing your testimony on +these issues and fully recognize that you are working hard to defend +and secure our homeland. We deeply appreciate your service and want to +help you succeed in your mission in any way that we can. + + All right. We will turn now to General Hughes. I want to +thank you again for being here today, and I look forward to +your testimony. And the floor is now yours. + + STATEMENT OF LIEUTENANT GENERAL PATRICK HUGHES, ASSISTANT + SECRETARY FOR INFORMATION ANALYSIS, DEPARTMENT OF HOMELAND + SECURITY + + General Hughes. Well, thank you. Good morning, Mr. + Chairman and members of the committee. I would like to read +just a very brief summary of my statement for the record and +for your knowledge and then turn over to the remainder of the +time to your questions. + I am privileged to appear before you today to discuss the +role of the Office of Information Analysis within the +Information Analysis and Infrastructure Protection Directorate +of the Department of Homeland Security as well as the IA effort +at intelligence coordination and information sharing. IAIP, and +specifically IA, are moving forward in our statutory +responsibilities, which include providing the full range of +intelligence support to senior Department of Homeland Security +leadership and component organizations and to State, local, +tribal and private sector respondents; mapping terrorist +threats to the homeland against assessed vulnerabilities to +drive our efforts to protect against terrorist attack; +conducting independent analysis and assessments; assessing the +vulnerabilities of key resources, and critical infrastructure; +merging relevant analyses and vulnerability assessments to +identify priorities for protective, defensive and supportive +measures; partnering with the Intelligence Community, notably +the Terrorist Threat Integration Center, law enforcement +agencies, notably the Federal Bureau of Investigation and +State, local and tribal partners and the private sector, as +well as all of DHS's components to manage the collection and +processing of information involving threats to the homeland; +and finally disseminating time sensitive warnings, alerts and +advisories. + I have been the Assistant Secretary of Information Analysis +now for less than 4 months. We have accomplished much in a +short period of time, and we continue to press forward to +strengthen this vital office in our ability to support the +overall Department of Homeland Security mission to secure our +homeland. + As I aim for this, we will achieve robust connectivity to +all respondents. Indeed we have robust connectivity now. We +will develop a world class information technology support +system for the work of intelligence. We will bring on fully +trained and cleared staff that will form direct relationships +with intelligence persons at the State and local, tribal, major +city, private sector levels, and with our partners in the +Intelligence Community, and we will develop a full capability +to engage in all source fusion and production. + We are and will continue to be a full partner in the U.S. +Intelligence Community. Together we will help you and others in +the government to protect the people of this Nation. + Thank you very much for your time and, Ms. McCarthy, it is +nice to see you this morning, too. + [The statement of General Hughes follows:] + + Statement of The Honorable Patrick M. Hughes, Assistant Secretary + Information Analysis and Infrastructure Protection Directorate, + Department of Homeland Security + + Good morning Mr. Chairman, Representative McCarthy, and +distinguished members of the Committee. I am privileged to appear +before you today to discuss the role of the Office of Information +Analysis (IA), within the Information Analysis and Infrastructure +Protection Directorate (IAIP) of the Department of Homeland Security +(DHS), as well as IA's intelligence, coordination, and information +sharing efforts to date. + Through the Homeland Security Act of 2002, the Information Analysis +and Infrastructure Protection Directorate, and consequently, the Office +of Information Analysis, is charged with ``integrating relevant +information, intelligence analyses, and vulnerability assessments +(whether such information, analyses, or assessments are provided or +produced by the Department or others) to identify protective priorities +and support protective measures by the Department, by other executive +agencies, by State and local government personnel, agencies, and +authorities, by the private sector, and by other entities.'' + The philosophical underpinning of IA as an integral part of the +IAIP Under-Secretariat of DHS is to provide the connectivity, the +integration, the communication, the coordination, the collaboration, +and the professional intelligence work necessary to accomplish the +missions of, and the products and capability necessary for the +customers and the leadership of DHS. Simply put, we perform the +intelligence work of Department of Homeland Security. + IAIP is moving forward in carrying out our statutory +responsibilities which include: +Providing the full range of intelligence support to + senior DHS leadership and component organizations and to state + and local and private sector respondents. + Mapping terrorist threats to the homeland against + assessed vulnerabilities to drive our efforts to protect + against terrorist attacks + Conducting independent analysis and assessments of + terrorist threats, including competitive analysis, tailored + analysis, and ``red teaming'' + Assessing the vulnerabilities of key resources and + critical infrastructure of the United States + Merging the relevant analyses and vulnerability + assessments to identify priorities for protective and support + measures by the Department, other government agencies, and the + private sector + Partnering with the intelligence community, TTIC, law + enforcement agencies, state and local partners, and the private + sector, as well as DHS' components to manage the collection and + processing of information involving threats to the Homeland + into usable, comprehensive, and actionable information. + Disseminating time sensitive warnings, alerts and + advisories to federal, state, local governments and private + sector infrastructure owners and operators + It is the mandate to independently analyze, coordinate, and +disseminate the entire spectrum of threat information affecting the +homeland that makes IA unique among its Intelligence Community +partners. The analysts within Information Analysis are talented +individuals who draw on intelligence from other components within DHS, +IA's fellow Intelligence Community members, the Terrorist Threat +Integration Center (TTIC), and federal, state and local law enforcement +and private sector entities. The comprehensive threat picture produced +is coordinated with the vulnerability assessment and consequence +predictions identified by the Infrastructure Protection half of the +IAIP Directorate. + The Office of Information Analysis is also unique in its ability to +communicate timely and valuable threat products to state and local +officials, federal sector specific agencies (as indicated in HSPD-7), +and the private sector as is appropriate. The relationship IA and +indeed the entire Department of Homeland Security has with these +contacts results in the IAIP Directorate being in the position to +effectively manage information requirements from the state and local +governments and private sector entities that are vital to protecting +the homeland. DHS will continue to work in close communication with +these officials, as well as with the other organizations it receives +inputs from, to maintain the effective relationships that have been +established. + IA is the heart of the intelligence effort at DHS. It is +responsible for accessing and analyzing the entire array of +intelligence relating to threats against the homeland, and making that +information useful to those first responders, state and local +governments, and private sector. As such, IA provides the full-range of +intelligence support to the Secretary, DHS leadership, the +Undersecretary for IAIP, and DHS components. Additionally, IA ensures +that best intelligence information informs the administration of the +Homeland Security Advisory System. + Central to the success of the DHS mission is the close working +relationship among components, the Office of Information Analysis +(``IA'') and the Office of Infrastructure Protection (``IP''), and the +Homeland Security Operations Center (HSOC), to ensure that threat +information and situational awareness are correlated with critical +infrastructure vulnerabilities and protective programs. Together, the +three offices provide real time monitoring of threat information and +critical infrastructure to support the Department of Homeland +Security's overall mission. This permits us to immediately respond to +and monitor emerging potential threat information and events, and to +take issues or information for more detailed analysis and +recommendations for preventive and protective measures. The integration +of information access and analysis on the one hand, and vulnerabilities +analysis and protective measures on the other, is the fundamental +mission of the IAIP Directorate. +IA and TTIC + The Office of Information Analysis and the Department of Homeland +Security are fully committed to the mission driving the Terrorist +Threat Integration Center. From a personal standpoint, I believe both +organizations are fulfilling their missions and enriching both each +other and the wider Intelligence Community. This opinion is backed by +the tremendous track record of success TTIC has in supporting the +Department of Homeland Security and its needs. As partners, IA and TTIC +spend much time communicating, both through the DHS representatives +located at TTIC and through direct communication of leadership. +Personally, my relationship with TTIC Director John Brennan could not +be better. At present, we talk at least daily and as specific threats +pertinent to the homeland arise. The close professional associations +that have been forged between the two offices will allow both +organizations to work on complimenting each other in the best interest +of the nation's security. For example, IA is responsible for +translating the analysis done at the TTIC into actionable data for law +enforcement officials. +IA and TSC + The Office of Information Analysis has a similarly productive +relationship with the Terrorist Screening Center. While both perform +duties that result in information being passed to local first +responders and state and local officials, both entities have separate +missions. IA provides the full spectrum of information support +necessary for the operation of the Department of Homeland Security and +for the benefit of Federal, State, Local, and Private Sector officials +throughout the United States, to secure the homeland, defend the +citizenry and protect our critical infrastructure. In contrast, the TSC +is in the process of developing a fully integrated watch list database +which will provide immediate responses to federal border-screening and +law-enforcement authorities to identify suspected terrorists trying to +enter or operate within the United States. + Just as TTIC plays a vital role in supplying its federal partners +with the broad threat picture, the TSC has quickly become an essential +resource for local law enforcement, its federal government +contributors, and other users. Already, over 1,000 calls have been made +to the center, with over 500 positive identity matches. Through the +matching and cross-referencing of lists, the TSC is allowing those +first responders on the front lines of the fight against terrorism to +access the information they need to identify and detain suspicious +individuals. + DHS, IAIP, and especially IA will continue to work with the TSC to +coordinate information sharing efforts and to establish requirements +for accessing information. IA and the TSC will grow together in their +effort to serve the people and guardians of this nation. + In Conclusion + I have been the Assistant Secretary of Information Analysis now for +less than four months. Building up the IA office, increasing our +information capabilities, and coordinating information sharing across +the entire federal government has been a monumental task. And, while we +have accomplished much in a short period of time, we continue to press +forward to strengthen this vital office and our ability to support the +overall DHS mission of securing our homeland. In order for the Office +of Information Analysis to accomplish its unique mission, we need the +right organizational structure, qualified and cleared personnel, +resources, and technical capabilities. + As IA matures, we will complete a robust connectivity to all +respondents. We will develop a world-class IT support system for the +work of intelligence. We will bring on a fully trained and cleared +staff that will form direct relationships with intelligence persons at +the State and Local, Tribal, Major City, and Private Sector levels. We +will develop full capability to engage in all-source fusion and +production. We are and will continue to be a full partner in the +Intelligence Community. Together, we will protect the people of this +nation. + + Mr. Gibbons. Thank you very much, General Hughes. We +appreciate the information that you provided us. It is very +helpful. And I want to remind the members of the panel again we +limit our questions to 5 minutes, unless you have had an +opportunity to make an opening statement, at which point you, +if you have intended to put that in the record, then we will +make it an 8-minute questioning period. + So let me recognize myself for the first 5 minutes. General +there is always this question in everybody's mind about +connecting the dots, but the real question is not so much +connecting the dots as it is collecting the dots. + We have to have a robust Intelligence Community, a robust +intelligence capability in order to get enough dots to be able +to connect them so that we know we are looking at the right +picture. + As I always say, if you have got only four dots you can +make four dots look like anything you want. But if you have 24 +dots that makes a big difference in the picture you are looking +at. How do you know you are getting everything you need in your +office in the way of information from the Intelligence +Community so that you are able to do your job? + And let me ask, is there a need for an information +technology system that automatically shares intelligence or +will that add some potential to overload, say, the DHS analysts +that you have? + General Hughes. The first part of the question, sir, I +think is a very interesting issue for me, because I am living +through that part of the process now of determining whether I +do get everything that is available. + My view to the answer is yes, I do, although, sometimes I +have to work hard to get it. It would be better, and I hope to +achieve this goal to have it come to me somewhat automatically, +so that I don't have to reach out quite as much or to intercede +on occasion and gain information. + But I would say that right now my direct answer to your +question is that I am fully engaged, involved, and informed in +the U.S. Intelligence Community, to include with the Central +Intelligence Agency, some of their most sensitive information +and operations, somewhat less so with the Federal Bureau of +Investigation, somewhat less so with the Department of Defense +and others. + But to be honest, that is probably the evolving form of +this arrangement; in my view, the FBI and the TTIC as my prime +two conduits for information, and then many others. Looking at +the--away from the Federal family to the State, local, major +city, tribal and private sectors, there are shades of gray and +green there. Depends on the place and the connectivity that +they have and the circumstances they find themselves in. + But especially in the major cities, the interaction is +fairly good. When there is a reason for that interaction, my +goal is to make that interaction rather autonomous and +continuous. We have not yet achieved that connectivity. The +interaction there isn't present for that yet, but I hope it +will be soon, and the initiative by the Department to put in +place an interactive system of communications and connectivity +is part of that effort. + Mr. Gibbons. Okay. I didn't mean to interrupt you. + General Hughes. I was going to say with regard to the last +part of the question it is my goal, and it is the Department's +goal, to make this autonomous, to make it somewhat automatic, +although we still want a human to make judgments about the +information and whether or not it is sending the information or +receiving the information. We must have human beings in this +loop to make good judgments. So I am pressing for and hope to +achieve within this year a very large degree of autonomy and +automatic delivery and receipt of information. But I would like +to emphasize that we want to make sure we exercise deliberate +judgment by human beings at appropriate points along the way, +especially at points that do not impede the flow of +information, but actually assist in placing the information in +context. + Mr. Gibbons. Thank you, General. Let me ask in the very +brief time remaining, I know that DHS is working with both +State leaders and DHS personnel in identifying and getting +proper clearances for handling classified information. But how +is DHS working with other agencies to identify those other +people who may need access to this information in order to +identify a sharing mechanism capability and assure that they +have the proper clearances? + General Hughes. In the Federal family that does not seem to +be a problem. By the person's specific positions with specific +responsibilities, they are fairly clear, and I don't view that +as an issue. Outside of the Federal family, at the State, +local, through private, that is an issue, and we have to come +to grips with it. We are requesting that persons who do not +have security clearances get them at the Secret level, so that +they are authorized under U.S. Federal policy and law to be +allowed to have U.S. Federal Government information to at least +the Secret level. + In some cases there is a fairly robust capability for that, +and others there is less capability. So we have to proceed as +rapidly as we can to build the capability out in the State +through local, and to some perhaps lesser degree in the private +sector we have to build that capability in. + Mr. Gibbons. Thank you very much, General. My time has +expired. I turn now to my colleague, the gentlelady from +Missouri, Ms. McCarthy, who has agreed to enter her opening +statement in the record. It will be offered. She has 8 minutes +for opening questions. Thank you. + Ms. McCarthy. I thank you, Mr. Chairman, and Mr. Secretary, +it is a delight to have you with us today. I appreciate very +much your testimony that you shared, particularly the bullets +on partnering with State and local partners and private sectors +so that the message, the material is usable, comprehensive and +actionable information. + The time sensitivity of this is still problematic out in +the heart of America with some of our State and local +responders, and also a concern about closing the information +loop to see that when State and local responders send word up +to the agency at the Federal level about some time sensitive +information they have, whether or not it is acted upon in--that +the information loop doesn't seem to be quite complete. + Although the budget is recommending $10 million more to +undergird the implementation of these national systems for +information sharing, could you be a little more specific with +us today about your vision of how best to make all of that +information come together and complete the loop so it is +actually a very effective system as you envision it? + General Hughes. Of course. We are trying to use the--any +preexisting structure that already exists for the passage of +classified information, and right now out to the State and +local and other respondents away from the Federal family the +prime conduit is the JTTF structure, operated by the FBI, which +terminates in the State and major city level. And we do pass +information via that conduit. We also pass it over secure +telephones. We have an effort underway, and it is largely +finished, to provide STU, STE, secure telephone capability out +to at least the State and major city homeland security +providers. And we also have similar capability, although we are +not sponsoring much of it, it already exists in the private +sector. So right now, today, I can get on the telephone to all +of the 50 States, secure, and talk to them about information, +and I have done that in a number of cases. + I can also pass classified information via the JTTF +connection system, or in some cases we have used a preexisting +military system where there is a coincidence between the +National Guard office or some military office that has secure +communications. + Our intent, our hope, and my vision, is to put in place a +system which is actually called JRIES. It is really--a name is +not really that important. The idea here is to put in place a +Secret level connectivity to the State and major city to begin +with, and then follow on with a broader fielding later to the +State and major city homeland security advisers, a capability +to communicate with them directly that is controlled by and +supported by the Department of Homeland Security, yet would be +in parallel with preexisting law enforcement connectivity and +preexisting other Federal Government connectivity. + It is an issue, I believe, to manage that properly, and we +have to manage that here at the Federal Government level by +making sure that we don't unnecessarily duplicate or +unnecessarily be redundant or unnecessarily flood the system +with information. + Back to Chairman Gibbon's question here, we don't want to +overload not only the Department of Homeland Security, but we +certainly don't want to overload the responders out at the +State and local, major city and private sector and tribal +levels. So we have a management responsibility that goes along +with this that is not part of the technical component +necessarily, but it is probably more important in my view. + The last thing that I would like to tell you is that the +vision that I have to be able to do this, and that the +Department has, indeed is on the way to fruition. We have +rolled out the information system to produce a Secret level +connectivity, but we are only fielding it now at the +unclassified level. We hope to encipher it later on and make it +Secret. + Ms. McCarthy. If I might, General, thank you for that +information. It is heartening to those of us concerned about +our communities out there where we know that they are +partnering and they are working together. But I am not sure +they always are confident that they know what to do. + Prior to 9/11, for example, in my community there were a +lot of individuals, immigrants wanting to learn how to fly crop +dusters. In retrospect, we now understand why. But what I want +to pursue in the limited time left to us is how do you perceive +getting the knowledge out to the State and locals about what +you are really looking for, based on your intelligence, so that +they can be better prepared to respond to you with things that +are insightful and timely? + General Hughes. We are doing that now by publishing and +disseminating in a variety of different ways information about +terrorist tactics, techniques and procedures. We are doing that +largely at the unclassified level. So we take classified +information into our system, we develop--and we do this by +way--as well as the FBI and the Terrorism Threat Integration +Center, we do it sometimes together and sometimes separately. +But the net result is the same, an informed citizenry away from +the Federal Government. And all of this information I guess +that has come to us, and we have disseminated out, has greatly +aided in an understanding out in the communities of our +country, an understanding of how terrorists might act and what +to look for, which was the kind of the construct of your +question. + We hope to continue that in a more robust way with this +enhanced communications system. I will also mention that we +have an initiative to bring three or four, or however many can +be supported, persons from each State and from a number of the +major cities here to Washington this summer, to gather them +here and teach them or train them about some of the information +handling mechanisms that they are going to have to implement +now that we are moving them into this classified environment. + Ms. McCarthy. Will the $10 million in the budget for +security operations cover that, not just that training but the +States' capacity or the--. + General Hughes. We hope to cover parts of it. I don't think +$10 million will cover all of it. But in some cases, +interestingly enough, the States have taken their own +initiatives with their own money or their own resources, and +once again, in some places this is extremely robust, like New +York, Los Angeles, for example, and other places it is less +robust. But we will help where we need to help and where it is +appropriate to help in the best way that we can. + Ms. McCarthy. Thank you. I know that States like Missouri +are broke. So I am sure that they will welcome that opportunity +for your help. + Thank you, Mr. Chairman. I yield back. + Mr. Gibbons. Thank you. We will turn to the gentlelady from +Washington, Ms. Dunn, for 8 minutes. + Ms. Dunn. Thank you very much, Mr. Chairman, and welcome to +our committee, General. It is good to have you here. I am very +curious about TTIC, and I am not sure how it ended up under the +aegis of the CIA in the beginning. I know that you are on that +board. + I was a little concerned a couple of weekends ago, as we +went to SOUTHCOM and had a session with them, that the +Department of Homeland Security wasn't even on their chart for +people who are receiving information from the task forces, and +so forth, that are controlled by them. + I am wondering what your take is on TTIC. Many of us +believe it should be under your aegis. Could you give me a read +on that, tell me how it is working, whether you believe that +you have adequate input and how it might work if it were under +the Department of Homeland Security? + General Hughes. Sure. My view is that--and I should tell +you, by the way, that before coming to this job I was a member +of the Kerr Commission, which was put in place by the Director +of Central Intelligence to study the Terrorism Threat +Interrogation Center and to come up with some viewpoints about +this issue by living and working in the Terrorism Threat +Interrogation Center for about 2-1/2 months. + So I am pretty familiar with what they do and how they do +it and why the decision was made to place them where they are. +My view is that that decision to place them under the umbrella +of the Office of the Director of Central Intelligence was a +very good decision for a couple of reasons. They formed this +organization rapidly and brought it on line very rapidly within +the support system, the structure of the Central Intelligence +Agency. Without that structure or something similar to that, I +think it would been a very slow start and much more difficult. +They are a very robust organization now and getting more so all +of the time. And I am directly connected to them, and I would +say that they are today, as we speak this morning, the most +robust information source for the Department of Homeland +Security. We are a direct customer of theirs, and John Brennan +and I directly communicate several times a day whenever he is +here. He is right now traveling. But when he is here, we are +very close and very much interacting. + My view, which has not changed, is that at some point we +need to consider the Terrorism Threat Interrogation Center +coming under a different kind of management structure, perhaps +under DHS, perhaps under an association of structures of some +kind, because it is a very broad organization in its charter. +It is very connected to so many different kinds of +organizations, which is a very interesting feature to have an +organization like this when you build a kind of, let's call it +a joint organizational or combined organization, in the context +of the Department of Homeland Security. That means that it is +connected virtually to every other correspondent in the +environment of counterterrorism and securing the homeland. + The same thing is true at the TTIC. One should not view it +as a central intelligence agency or just as an intelligence +agency organizational entity. It is very interactive with law +enforcement, with others in the Federal Government. I think it +has an important place. I think we ought to let things evolve +for a little bit. + With regard to your comments on--not your comments but Ms. +McCarthy's comments perhaps on the way this information passage +works, it is a very difficult kind of thing. The TTIC right now +at the all-source Top Secret special compartment intelligence +level acts as a hub for international and domestic terrorism. +To the degree that international terrorism affects the United +States I am interested, and that information comes to me. To +the degree that I am connected to the TTIC all of the +information on the domestic environment comes to me. And we +work together in a very, what I would call synergistic way. +They do first the line analysis, prepare products, put the +information in context in a lot of ways and deliver it to us. +My organization does more detailed analysis in some cases, or +we work together to do it. My organization has an independent +assessment of it. My organization deals with it with regard to +the State through private sector entities very directly, and +that is what we should do. I think it is working very well. + I do think, and I personally think that the Director of +Central Intelligence would agree with this, at some point in +time the placement of the organization and its roles, missions +and functions with regard to central authority needs to be +reconsidered. We might, by the way, in that reconsideration +decide it is fine where it is. I don't know. But I do think +that that should be done sometime after a little longer +evolution. + Ms. Dunn. I appreciate your answer. I would think that +since your department, the Department of Homeland Security, +really is charged with the very responsibilities that TTIC is +doing, I think the sooner rather than later that critique takes +place and that analysis takes place of where it should be +located, that would be good, because we may have to change the +act, since it specifies that you do the very things that TTIC +does yet they are housed in a completely different department. +But I appreciate your flexibility on it. + General Hughes. Please keep in mind, ma'am, that--I wanted +to make a point, and we don't do everything that TTIC does. +With regard to international terrorism, we are not directly +involved in the broadest scope of the Terrorism Threat +Integration Center. The focus that we have is on the United +States. Where international terrorism touches the United +States, of course we are interested. Where it does not or where +it seems apart from the security of our homeland, that is the +business of others and TTIC serves them all; it broadly is +serving the United States Government. + Ms. Dunn. Thank you, General. Let me ask you a couple of +budget oriented questions quickly. Does the IA Directorate have +an integrated cross-cutting budget or management focus that +pulls together other intelligence components within the +Department, such as those that are run by the Coast Guard and +TSA, and if this is true, how is it being coordinated? + General Hughes. We do not have such a cross-cutting budget +process. We have an interaction between the component parts of +the Department of Homeland Security, of which there are some +important organizations like the Coast Guard, the Secret +Service, the Immigration and Customs Enforcement, the Customs +and Border Protection, the Transportation Security +Administration, the Emergency Preparedness and Response, +formerly the FEMA organization and the Federal Protective +Service. + We are beginning the process of amalgamating the +intelligence elements of those organizations in some ways. One +of them will be better knowledge and oversight of the budgets +that they have and the resources that they apply. + Ms. Dunn. Thank you. + Mr. Gibbons. Thank you, Ms. Dunn, and I will now recognize +the ranking member of the full committee for 5 minutes. Mr. +Turner. + Mr. Turner. Thank you, Mr. Chairman. General Hughes, thank +you for being with us today. I have just put a chart before you +there that I wanted to direct your attention to. I think that +you have a copy of it already. + + Submitted for the Record from the Hon. Jim Turner + + United States Government Intelligence + + Analysis Organization + +Pre 9/11 + CIA & FBI Counterterrorism Center (CTC) + DOD Intelligence Agencies + FBI's Counterterrorism Division + CIA Directorate for Intelligence + State Department Bureau of Intelligence and Research +Post 9/11 + Terrorist Threat Integration Center (TTIC) + DHS Information Analysis and Infrastructure Protection + (IAIP) Directorate + FBI National Joint Terrorism Task Force + DOD Undersecretary for Intelligence + Northern Command Combined Intelligence Fusion Center + (CIFC) + The Associate Director of Central Intelligence for + Homeland Security + FBI Foreign Terrorist Tracking Task Force (FTTTF) + + [GRAPHIC] [TIFF OMITTED] T2641.001 + + + What it shows us is the intelligence analysis organizations +that existed before September 11th. Do you see, five of them +there? And then the new organizations that have been added +since + September 11th, and of course all of the pre-9/11 +organizations are still in existence. + So it does give us some concern as to whether or not with +this proliferation of new agencies we are going to be able to +connect the dots, so to speak, with all of this information +available coming from new sources. I guess in looking at that +total picture, there was a National Journal article that came +out this week. I don't know if you have seen it. It made a +couple of comments that I suspect I should read to you and let +you respond to it. + In that article it says, TTIC now produces a Top Secret +daily report on threats to the Nation, but isn't required to +share with Ridge and his key lieutenants the intelligence on +which its conclusions are based. Is that a true statement? + General Hughes. That is false. Indeed, I receive that +document every day directly on my desktop computer first thing +in the morning in a very timely fashion, and the Secretary and + Deputy Secretary of the Department of Homeland Security +also receive it. + Mr. Turner. Well, the comment was not about you receiving +the daily report. The comment that I read you said that you are +not able to access the intelligence upon which the conclusions +in that daily report are based. + General Hughes. That is false. + Mr. Turner. So you are telling me you can get any +information you want to out of the CIA or these other agencies +that are listed on this chart? + General Hughes. During my opening comments, and first line +of questioning from Mr. Gibbons, I did relate that there are +shades of autonomy or automatic mechanisms here. Sometimes I +have to work a little harder to get that information, depending +upon its compartmentalization and depending upon the nature of +the information source. But to date I am not aware of +information from the Central Intelligence Agency that has been +directly withheld from me. There isn't any as far as I know. + Mr. Turner. But you are in the same position that we often +find ourselves; you can't get behind some of that information +because some of that is very well protected by the CIA and some +of these other agencies? + General Hughes. Interestingly enough, sir, because of my +previous position and my experience I am badged at the CIA, I +have had direct working access at the CIA. I am invited to join +the DCI's afternoon/evening meeting on the topic of countering +terrorism, and I indeed do have very robust access personally. + Mr. Turner. In your division right now I understand that +you have 60 employees. Is that a correct statement? + General Hughes. There are more employees than that at this +time, but it is not as robust as we would certainly wish, and +the total number of employees that you just quoted counts not +only Federal full-time persons who are employees of the +Department of Homeland Security, but indeed are detailees and +are government contractors and IPAs from the laboratory and +other government organizations. + Right now I am told by my staff that the total number this +morning--by the way, it is changing every day--is 97. + Mr. Turner. When you said a minute ago that you have access +to all information based on your previous work, do you have +access to all covert action programs that the CIA conducts? + General Hughes. No, I do not. But--certainly not all, by +any means. + Mr. Turner. You made mention a minute ago that you have +access to information relating and are provided information +relating to domestic terrorist activities and threats but not +foreign? + General Hughes. I hope--I tried to say that if the foreign +events or the foreign information touches on the security of +the homeland, then I do have an interest in it and I get access +to it. + Mr. Turner. But it is not routinely provided? + General Hughes. It is. There is an issue here of +definition. Much of it does flow routinely. But there is some +of it that is a little bit nebulous, maybe something that +happens in a place like Afghanistan. The context of the +conflict may not seem in the due course of events to touch upon +the security of our homeland, but occasionally it does. And so +when it does it is kind of the burden to decide that is placed +on a number of intelligence organizations and officers along +the way as to whether I need to know about it as the Department +of Homeland Security intelligence chief. + So that is the kind of thing that we need to evolve into +and have greater understanding than we do now. + Mr. Turner. Thank you, General. I see my time has expired. +Thank you. + Mr. Gibbons. Thank you, Mr. Turner. We will turn now to the +chairman of the full committee, Mr. Cox, for 5 minutes. + Mr. Cox. Thank you, Mr. Chairman. Welcome, Secretary. As +you know, your responsibilities are very near and dear to the +oversight aims of this committee. We are very, very keen on not +only the Department succeeding, but specifically your +directorate succeeding and specifically IA, because it is the +heartbeat of prevention. It is the best means that we will have +to find these terrorists and stop them before it is too late. +And it is for that reason that IA exists within the Department +of Homeland Security, because the focus being the United States +territory itself, there are great concerns about CIA taking on +this new domestic responsibility. + The CIA, which houses TTIC, is of course ahead of IA in its +development, and as the ranking member was just inquiring, we +want to make sure not only that you have access to everything +at TTIC and in fact access to everything else on the chart that +was up there a moment ago, but that it is routinely provided as +the statute requires and you don't have to pry it out like a +dentist doing a root canal, that it is provided in real-time +and that the purpose for which it is provided is your own +analysis. + And beyond doing your own analysis, we want to make sure +that you and your troops are the front line for the United +States Government in analyzing this intelligence as necessary +and providing it to U.S. domestic actors, particularly in the +private sector. I am not entirely certain that at least thus +far we have got DHS out in that lead role, and it needs to +happen. + Likewise, we want to make sure that you are out in front +and DHS is out in front using what you know and what you have +learned to train people within the domestic hemisphere so that +they can handle this information as well. + And so I wonder if you could talk to me about IA's role, +first, in sanitizing intelligence and providing it to the U.S. +domestic actors, and, second, training U.S. domestic actors on +their part of this intelligence sharing network? + General Hughes. I am going to be duplicating a couple of +things that I said earlier, especially in response to Ms. +Dunn's question. + Mr. Cox. Well, you don't need to do that. If you want to +refer me to that answer, that is sufficient. + General Hughes. Let me just make two replies to you, sir. +First, we have not achieved the kind of connectivity yet that +we need to achieve. We are working hard to do it, and this is +both a technical issue and a policy issue, and it also +encompasses the issues of training that you brought up. + One of the efforts we have ongoing is to try to figure out +how to train a rather large number of persons who are in the +State, local, tribal and private sector, and major cities, +offices that have charged homeland security as a kind of a +large topic area out there in the country. And we have a plan +to bring some of them in here to the United States Capital this +summer and train them over a 3-day period or so, both train +them and inform them, by the way, and also get to know them +better and make them part of this larger extended family of +homeland security. + So we do have efforts that I think you will applaud, and I +hope you will be part of in fact to do this activity. I want to +make sure though and leave with you this final thought. This is +an evolving thing. It is something that we are going to have to +build over some period of time. It is not something that you +can do very rapidly overnight. + I would say--I would give ourselves a B-plus right now for +effort. We are trying hard to get this done. Where there is +truly a piece of critical information I will do anything, and I +have done a few things, to call, to communicate, to get it out +there in some way. + One of the issues I covered earlier is that sanitizing it +at the unclassified level does take away a good deal of the +detail and some of the vital information that must be +communicated at times. So my vision, my effort, is to put it +out there at the unclassified level when we can, but when we +can't, to have the option to put it out there at the Secret +level, which seems to be the right working level generally. In +some cases we might go beyond that, but in most cases that is +the goal. + Mr. Cox. Well, you have nothing but support on this +committee for what you are trying to do, and at least for my +part I want you to understand that I fully appreciate the fact +that this is an evolutionary undertaking and that no one here, +1 year into the existence of the Department, expects that this +is going to be a completed edifice. What we are interested in +is the blueprint. We want to make sure that we know where we +are heading and some day we can expect to reach these +destinations, and I am particularly in agreement with you that +our sharing, which I hope that DHS and you and particularly +General Hughes will take the lead on, be not exclusively +unclassified information. Part of the reason for wanting you in +the forefront of training in fact is so that we will have +people with experience and knowledge across the country who can +instantly receive this information at the State and local level +and at the private sector. + So you are to be commended for what you are doing. I am +very, very appreciative that the President and the Secretary +have selected you given your background, your experience, and I +think the country is very well served by your being there. I am +very pleased that you are using your background and experience +in a muscular way to make sure that the blueprint in the +statute is what is realized, and also that the good policy aims +that are better than that statute which you share are realized. +So thank you very much. + General Hughes. Well, thank you, sir. + Mr. Gibbons. Thank you, Mr. Cox. We will turn now to Mrs. + Christensen for 5 minutes. + Mrs. Christensen. Thank you. Thank you, Mr. Chairman, and +welcome, General. I also share the concerns about TTIC and your +agency, but I am not going to ask those questions again, but +just to let you know that I think many of us on the committee +share those concerns. And I realize that you have only been in +your office for about 4 months, but many of us are also +concerned about the slowness with which the Department has +moved to get up to speed. And so my question is really a very +basic one. Are you now in a permanent home, is your directorate +now--. + General Hughes. Yes. I believe we are in a permanent home +for the foreseeable future, I would say for 5 years or longer. +I believe that I am in a permanent place, and the building that +I am in, we are proceeding to finish it and make it more +effective and capable, because we believe we are in a permanent +place. + Mrs. Christensen. And your staffing level, with respect to +the staffing level that has been set for you, where are you? + General Hughes. Staffing level is not yet at 50 percent of +our hope. In fact, we are far short of it, but we are trying to +hire people as rapidly as we can. If I may just elaborate on +that for a moment. + We have to have people in the section that I am responsible +for, intelligence, who are cleared for Top Secret, special +intelligence or willing to take a polygraph examination, and +persons who come into that office immediately get access to +information that bears great responsibility personally. So we +have to do this right. It is not simple or easy to go out and +hire these kind of people. We are doing it as fast as the +system can kind of bear, and we are doing it as well as we can +right now. + However, I will tell you, this is one of my areas of +greatest frustration. We have had a fairly large number of +people apply for jobs. Some of them have had background issues +that we found to be unsuitable. Some of them have not been +willing to wait for background investigations of this nature to +take place, and some of them frankly just haven't been suited +to the work. But we are hiring people. + Mrs. Christensen. Well, not only am I concerned that you +are not fully staffed for the very critical function of your +office, but how are you set up to do the housekeeping, getting +the offices set up, the staffing set up and still not have that +detract from your statutory responsibilities? + General Hughes. Well, please keep in mind, ma'am, that we +have used contractors to great effect, and we are continuing to +do that. They are indeed responsible in many ways for the +development of our information technology structure. They have +built out the facilities that we now live in. We have fell in +on a Navy facility, and some of that Navy infrastructure is +still in place and supporting us. There is a transition period +here where much of the support requirements will now begin to +fall on the Department of Homeland Security, and we have to put +in place our own infrastructure support mechanisms to do that. + Mrs. Christensen. It is not taking away from your direct +staff's responsibilities on the intelligence side? + General Hughes. The way you phrased the question, ma'am, it +is not talking away from it. It is something of a competitive +issue at times. Information technology, as an example, has been +a struggle, but we are now seeing a light at the end of this +tunnel. We have gone to a new building. We now have computers +that operate in the U.S. Intelligence Community structure in a +pretty robust way and things are very rapidly improving, and we +hope that that improvement will continue as it has. + Mrs. Christensen. Okay. Among the statutory +responsibilities are of course assessing vulnerability of key +resources and critical infrastructure and merging relevant +analyses and vulnerabilities assessments, identify priorities. +I am reading from your statement. + Where are we in that, assessing vulnerabilities of key +resources and critical infrastructure, and doing those +assessments to identify the priorities for protective and +support measures? + General Hughes. In the structure that I am placed in, I +don't think this is necessarily easy to understand without some +kind of a diagram. But IAIP, Information Analysis and +Infrastructure Protection, is two parts. I am the IA guy, the +intelligence person. I provide the threat, and I provide +assessments, judgment. + Mrs. Christensen. So do you have then the key resources and +critical infrastructure--do you have the IP side information on +which to do your IA side? + General Hughes. Yes. The other side of this organizational +entity, infrastructure protection, is described in considerable +detail, what is referred to as the critical infrastructure of +the United States sometimes by way of excruciating detail. And +I think over the months and perhaps a couple of years to now, +that will be a continuing effort, to describe it more fully and +in more detail. But as that description begins to occur and is +occurring, that is then mapped against, or another way to put +it, is threat information is mapped against it so that the two +are kind of interactive against the infrastructure. And where +there are vulnerabilities, where there is targeting ongoing +against part of our infrastructure, where there are concerns +and gaps and issues, those are being identified and they are +being acted upon. But the action is left to others. We are the +organization that characterizes the problem. + Mrs. Christensen. Thank you, Mr. Chairman. I will give you +back the balance of my time. + Mr. Gibbons. Thank you very much, Mrs. Christensen. We turn +now to the gentleman from Connecticut, Mr. Shays, for 8 +minutes. + Mr. Shays. Thank you very much, Mr. Chairman, and, General +thank you very much for your very important work. + One of the things that I am very convinced about is that as +we set up this new Department of Homeland Security we have a +wonderful reservation of very experienced people to draw on. We +appreciate your experience. + I do want to say to you that I know that the Department is +wrestling with a lot of issues and there will always be things +that we don't like that it is doing, just by the nature of it. +But when we wrote this bill and created you, you are now +implementing that. We are trying to see if it is being +implemented in the way that we thought. I view your effort as +the receptacle of information. I didn't view that you sent +people out and you did the work. And one reason we didn't want +you to have a part in the Intelligence Community where you were +directing their activities was that frankly a lot of us felt +that this whole effort needs to be improved. And while we are +doing the Department of Homeland Security, do we have the +capability to also kind of rework intelligence? + Having said that, however, I believe that you should be +privy to all information and that you shouldn't have to cajole, +you should haven't to use charm, you shouldn't have to use your +past experience. It is just part of the law and they should +have to perform, and I would hope that one of the things that +you will do is if you are not getting cooperation you will let +the chairman of the full committee and the chairman of this +subcommittee know, however you choose to, that it could be +better. + I chair the National Security Subcommittee, and before 9/ +11, even though I have theoretical jurisdiction over some +aspects of the Intelligence Community, they always gave us a +permission slip not to show up for our full intelligence +committee. + What I am interested in knowing is the following. I am +interested to know what your role is in determining the +terrorist threat level, whether it is low, green; guarded, +blue; elevated, yellow; high, orange; or severe, red. What is +your role in determining that? + General Hughes. Well, sir, I am happy to report to you, and +kind of proud of this, that during the recent period when we +did raise the threat level to orange, and even within that +orange level perhaps raised some parts of it to a level of +pretty intense defensive and protective activity, and then +reduced the threat level back to the yellow elevated level that +we remain at today, that I was the person who was directly +turned to and asked by the Secretary of the Department of +Homeland Security--both inside the Department's own +deliberative group and externally in the security consultive +body of our government, I was the person that he turned to and +asked for the intelligence assessment about whether to raise, +and which I actually advised him to raise, and whether to +lower, and I advised him to lower and moderate. + Mr. Shays. Well, I appreciate knowing that you had this +level of impact. I would love to then--it is comforting to know +that I am finally speaking to someone who is taking some +ownership. + What concerns me is I have heard Mr. Turner suggest that +given how it works, we may not even want this warning system. I +tend to view, given how it works, I think it needs to be +improved. It is not a criticism of you in terms of knowing that +we need to raise it, but it is a criticism of the +implementation of it. + For instance, I am having a rough time understanding why we +are at elevated when we are all acting like we are at guarded, +and I am concerned that we only have one level to really go up +to. I view red as basically under attack. And so we are at +elevated, which is significant, but we are acting as a +populace, and I think even our first responders back home, that +they are under a general risk right now, and that they are +under a guarded condition. I think you have a sense of what I +mean here. I would love you to have some impact over maybe +getting us to allow for another gradient. + The other thing I am interested to know is what is the +benefit of having a yellow alert, which is elevated, around the +country when we knew for a fact that the threat was not +national, it was fairly geographical and urban in many cases. + General Hughes. It is--those are very complex questions. + I think I will answer it in two ways, two thrusts if you +will. + First, I personally like the system as it is, and I think +there is room for flexibility within each color zone. We have +chosen to be at elevated for what I think are the reasons that +I am going to explain in the second part of this answer. + General Hughes. But let us suppose for a minute that there +are gradations, and I believe there are, and there are actually +ways inside this threat advisory system for the Secretary of +Homeland Security and others in the Federal Government to +include the President to give directions that are very specific +within the color codes and combinations; and those colors +especially, but also the gradations within the colors, are +meant to allow both for a national alerting mechanism, kind of +a national view of the condition we are under and for some more +specific, focused efforts to be delivered to particular people, +particular groups, particular sectors, particular locales +within our country that, for reasons of threat and perhaps for +vulnerability, require a different sort of approach than merely +the color and verbal or wordage definitions that are in the +Homeland advisory system now. + I think it is okay, but others besides me--and this is not +really my policy issue. I think that others will be able to +decide whether or not changes are required. Whatever they are, +I will honor them, but I need to give you the second part of +this answer just briefly. + Mr. Shays. And then I am going to want to make a quick +response. + General Hughes. Okay. I am an old soldier, and I am very +familiar with war, and we are characterizing this as a war. But +in the war that conventionally is thought of and understood, +there is a time of development of the nature of the conflict +and the conflict itself and the war that takes place and the +post-conflict environment, and it is relatively slow, in many +cases. In some few cases, it might be days to weeks, but in +most cases it is weeks to months to years even that these +approaches to the conflict, the conflict itself and the post- +conflict environment takes shape. + We are dealing in a much different environment where, +literally, my timeline for action with regard to information is +one hour. That is what I tell people. + Mr. Shays. Let me say I am going to be having a hearing in +my own committee on this issue and get in greater depth, but I +still am concerned that we need a system that the public also +understands and knows what to do. It cannot be that the public +just does what it normally does when you are at yellow alert. +It needs to be a geographic, I believe. I do think the system +is worth using, but I think we need to improve it. + Thank you. + General Hughes. Sir, I am in favor of making sure that the +citizenry understands what we are doing. + Mr. Gibbons. Thank you, Mr. Shays. + I turn now to the gentleman from Massachusetts, Mr. Markey, +for 5 minutes. + Mr. Markey. Thank you, Mr. Chairman. + At yesterday's hearing before the Senate Armed Services +Committee, CIA Director Tenet revealed that he has spoken to +Bush administration officials when he felt inaccurate +statements were being made about the threats posed by Iraq. +Specifically, CIA Director Tenet acknowledged yesterday that on +more than one occasion he has noted questionable statements in +defense of the Iraq war by Vice President Dick Cheney. As we +all know, these private corrections did not prevent the Vice +President from continuing to make assertions about the imminent +threat posed by Iraq, statements which we know now were +exaggerated and inaccurate. + Since you began serving as Assistant Secretary, have you or +the information analysis group disagreed with intelligence +assessments or statements about terrorist threats made by the +Department, the White House, the CIA, the FBI or other members +of the intelligence community? + General Hughes. Yes, we have had differing views and +different view points at times. We have discussed them in the +appropriate setting. + Mr. Markey. So please indicate in which instances you +disagreed, the process you followed to register your +disagreement, and whether your disagreement resulted in any +adjustment in the intelligence assessment. + General Hughes. In most cases these disagreements are at +the analytic level, where an analyst will have a different view +and the analysts in IA may have one view of the importance of +or the meaning of information and I will share their view or +not, as the case may be. This is a very individual sort of +thing. But at some point I need to make the difference mine, +and then I will represent that to my associates, the heads of +intelligence at the CIA, at the TTIC, at the FBI, and the +Department of Defense, the appropriate people that I interact +with. Quite often, it never reaches that level. + Mr. Markey. What about when it does? + General Hughes. When it does, then I am certainly very +capable of expressing my view, and I do. + Mr. Markey. What happens when there is a disagreement with +the intelligence assessment which the intelligence officer, +you, is making? + General Hughes. To the best of my knowledge, there has +never been an agreement--or disagreement, rather, that has +risen to the level where I felt I had to take a note or make a +public declaration of difference. That has not happened. We +have been able to iron out our views. + Mr. Markey. Well, obviously, CIA Director Tenet felt the +same way, that he never had to publicly criticize, but it is +obvious now that CIA Director Tenet had not let the public know +that he did not believe that there was no uranium found in +Niger and that there were issues that were being completely +distorted by the President and Vice President in terms of items +that were dangerous that were inside of Iraq. It is obvious +that he just kept quiet and never made it public. + General Hughes. Without my commenting on your statement +there--I mean, there are so many issues there I don't know +whether that is what Mr. Tenet did or did not do. I would +rather not agree with your premise. I would rather just say +that in my case I can assure you I can look you and anyone else +in the eye and tell you that I am very capable of expressing my +independent views. I have and I will in the future. + Mr. Markey. Well, you told Mr. Turner that sometimes you +have to work a little harder to get the information which you +need. + General Hughes. That is true. + Mr. Markey. Well, that doesn't make me feel comfortable +that you have to work hard. My mother always said that you +should always work smarter, not harder. That is the point of +having you there. But what you are telling us is that you have +to work harder than other intelligence agencies in order to get +the information. That is a dangerous situation. + General Hughes. If I thought it was dangerous, I would tell +you. At times I have certainly been frustrated by it, but it is +not dangerous yet. It hasn't been dangerous, but I will have to +tell you that it is very much a concern of mine. But please +keep in mind, sir, I am giving you a characterization of many +events over the 4 months that I have been at this job, +approximately. My view is that we are improving this each and +every day. + Mr. Markey. I understand that. But what you said was that +your own past professional experience has helped you to gain +access to information collected by the intelligence community. +That doesn't make us feel good. Anyone who sits in your +position, even if you are not an old war horse, should be able +to get the information. + General Hughes. I agree with you. + Mr. Markey. The very fact that you are there and not +someone else, that makes it possible for you to get specific +types of information, then that is a very dangerous situation +for the homeland security of our country. + General Hughes. I disagree completely, and I will tell you +why. I think the reason I am there is because I am an old war +horse. I was brought in to kind of know how things work in this +large amalgam we call the U.S. intelligence community. What I +am doing, sir, and I think you ought to be not only happy but I +hope you will help me to do this, I am building the foundation +that others can come in and then--. + Mr. Markey. Describe a situation where the old war horse +was able to get information as someone else wouldn't. Could you +do that for us? + General Hughes. As I answered Mr. Turner, I am +knowledgeable of the U.S. intelligence community in a broad way +because of my previous position. I am also invited specifically +by the CIA and by others to come into their organization where +others may not be invited or indeed might not be as +knowledgeable as I am. There could be others that are just as +knowledgeable. I think some of my predecessors in this job +were, in the case of CIA. But if you will look over at my +background and my record, I have been able to fill for about 3- +1/2 years a position of the 1Director of Defense Intelligence +Agency and before that the J-2 of the Joint Staff. + Mr. Markey. I understand. + I will just finish in 10 seconds and just say, if I may, +Mr. Chairman, that it shouldn't take an old war horse. You used +the word others might not be given access. All of that +conditionality goes to the core of whether or not there has +been a seamless information flow which has been put in place. +Every time you use the word ``might'' during your testimony, +you actually raise questions about whether or not this +administration has come to grips with the necessity to connect +the dots in a way that gets all the people who need the +information into the flow as quickly as possible to prevent +another 9/11, and that is very dangerous. + General Hughes. Just a brief rejoinder. I think that the +last few words you stated, sir, are right. I am laying the +groundwork, and it just happens to be me and my personality, my +background, for this work. It has to be laid. It doesn't matter +if I am a completely new person, but it helps if I am not, and +that is the advantage I have, and I am taking full advantage of +it. Someone, hopefully far younger and far less experienced, +frankly, than me, is going to come into this job, and their +foundation is going to be very, very good. + Mr. Markey. My only point is, when you walk into the room, +you should walk in as though you are the President of the +United States with his direct orders to give every piece of +information to you; and what you are telling me is that they do +not see you as a direct extension of the White House in +ensuring that all information is given to you to prevent +another 9/11. Unless the White House takes that step, I am +afraid that you are playing a valuable role but in substitution +for something which should be coming from a much higher level. + Thank you, Mr. Chairman. + Mr. Gibbons. Mr. Sweeney from New York is recognized for 5 +minutes. + Mr. Sweeney. Thank you, Mr. Chairman. + General welcome. I don't consider you an old war horse. I +consider you a patriot. Young or old, I thank you for what you +are doing. + As you can tell by the questioning, there is a great deal +of concern. We are in a new phase of developing the Department +of Homeland Security, and I think some of this is natural, and +you have made the point in reoccurring themes that is all +revolutionary. The concern is, in merging these entities and +creating what Mr. Turner referred to as a proliferation of +agencies or certainly an expansion of agencies, it all seems to +be centering on at this point in time TTIC. Whether this is +normal response to bureaucracies or not, we are all concerned, +as the chairman pointed out, that you need to be relevant and +at the table and involved. + We had this line of questioning last week with General +Lebutti. In fact, I know the chairman has asked and I have +asked for some specific information back on staffing, et +cetera; and we were told it was coming soon. If you could +ensure that it comes today, for example, because it has been a +week, that would be greatly appreciated. + This all really gets to the core of what you said, the +issue of definition between the sharing of information and +intelligence and defining between the domestic versus the +international and its application. I understand that, but I +have some real practical concerns. + For example, our view I believe when we passed this +process, it is not that you necessarily had the ground forces +to gather and collect, because that would duplicate something +that already existed, but that you were right there in the +filtering of that information. You were right there at the +evolutionary parts of that process. + My simple question is, if you are 25 minutes away from +TTIC, how are you going to do that? Really, I think it is at +the core of questions on both sides of the aisle of this issue. +We are very concerned that you are essentially being in some +ways pushed aside and having to fight when Congress has already +determined your role. Could you address that issue more +specifically than you have thus far? + General Hughes. Well, I don't know if you were here when I +did take up that issue at the beginning a little bit. My view +is that we are about one millisecond away from TTIC. We are +directly connected to them with regard to automation and +communications. + One of the earlier questions was about the primary +intelligence that is produced by TTIC for the national +leadership and I receive that now on my computer desktop. + Mr. Sweeney. Do you need a physical presence there? + General Hughes. We do have a physical presence there. We +have a representative there, and we are just changing that +person out from one to another person. So our intent--my intent +personally--is to sustain that relationship there. We also have +a personnel bill which we are finding it very tough to honor, +but we are doing our best to try to honor it, to put some +fairly large number of persons in the TTIC, about 30. + Mr. Sweeney. I would like to work with you in this +committee and the approps on that. + On the personnel end of it, you mentioned you have some +frustrations in finding the right people, qualified people, +etcetera, et cetera. We are hearing that you are losing people +to TTIC because either the perception or the reality is they +are really in the game and you are not, and I have heard this +from a number of sources. Is there any truth to that? + General Hughes. Boy, I can give you the most--. + Mr. Sweeney. Your staff is nodding yes. + General Hughes. I can give you the most recent issue. I am +not aware of anybody that has gone to TTIC. Is there someone? + I think there might be a huge misunderstanding here. Not +only--I feel kind of funny giving you this answer. Not only +have we not lost anybody to TTIC, to the best of our collective +knowledge, but it is not really possible for us to lose anybody +to TTIC because it is an amalgam of intelligence professionals. +It is not a competitive environment. + Mr. Sweeney. Okay, I have some executive session questions. +The last one involves the need for a comprehensive, all-hazard +Federal emergency warning system. Currently, there are eight +separate systems that exist to provide cognitive notification +of imminent and potentially catastrophic threats to health and +safety. What are we doing to integrate those systems and do you +agree we need to integrate those systems, I guess I should have +asked first. + General Hughes. The honest truth is, sir, I don't know what +we are doing. This is out of my area of responsibility a little +bit, and it is also something I just am not well informed on, +but I would like to get back to you about that question, and I +will. Do I think there should be a coherent warning system in +the United States? Absolutely. + Mr. Sweeney. Okay. Thank you, General. + Mr. Gibbons. Thank you, Mr. Sweeney. + We turn to Mr. Meek for 5 minutes. + Mr. Meek. Thank you very much, Mr. Chairman. + I appreciate your service to the country and also your +coming before the committee today. I guess I want to ask a +couple of questions that you have already heard, but I think +that it is important enough to ask not the same question, but +similar questions. + You are the gateway to information not only to the Federal +law enforcement agencies but also State and local agencies, am +I correct? + General Hughes. I don't think I am the only gateway. I am +one. + Mr. Meek. Yes, but you are the gateway as it relates to +real intelligence. + General Hughes. For the homeland security effort, yes. + Mr. Meek. That is correct. I think it is important--and I +am sorry. I didn't hear your opening statement. I am a member +on the Armed Services Committee, and we had a similar meeting +going on. + I guess I want to pretty much address, from what I have +read of your statement, your involvement not only with TTIC but +with also the TSC, your personal involvement. I am glad that +you have the CIA badge, I am glad you have the relationship +with many others, but I am afraid that if you catch a cold, we +are in trouble. I know that you are trying to build the +infrastructure that is needed, and I think Mr. Sweeney--and I +am glad that he is well-read and studied on this issue. I mean, +I am concerned about this whole issue of physically not being +with the rest of the team that is kind of moving in your +direction, doing some of the same things--I think there is some +value in having a cup of coffee with those folks. I think there +is some value in running into them in the parking lot so they +are thinking of not only you but your office. I know that you +are building onto that, but I am very concerned about who is +the number two and who is the number three person, since you +are switching them out now--we know that attrition happens +everywhere. How is that going to work towards the security of +the country? + I think also, as we start looking at your testimony, and I +am so glad that you broke it down so that people can understand +the role of your office and other offices, but pulling from +your testimony. It provides a full spectrum of information +support necessary for the operation of Homeland Security for +the benefit of Federal, State, local and private sector +officials throughout the United States to secure the homeland +and defend the citizenry and protect our crucial +infrastructure. + Now that is important, and that is a very profound +statement on your behalf. As we look at that in that mindset, +the one hour, the human intelligence--the right here, right now +--is so very, very important. I know, being someone who has +been in law enforcement and sharing information--Ranking Member +Turner talked about the pre-9/11 versus the post-9/11. We are +looking at a lot more post-9/11. But is the information sharing +really working? Are you getting the information that you need? +You feel that you are, but what happens if you have to go on a +trip or a conference or what have you? + That same automation as it relates to being secure, I don't +know if that is real-time with you. They have the relation with +you. So I would urge if you could possibly reevaluate your +location, where you stand physically every day, even the time +that you are here in the committee, and while you have been +here over an hour and a half, who is sitting at the wheel? It +may seem elementary, but it is very important if you can give +us some response. + General Hughes. Well, first of all, a one-way pager from +the Homeland Security Operations Center and from my staff, +which is manned 24 hours a day, the intelligence analysis +element of the Homeland Security Center. The people work +directly for me. + They are in constant communication with me wherever I am. + I would like to introduce Mr. John Rollins behind me. If +you will stand up, John. + John is my Chief of Staff, essentially my deputy. He does +not have all of the same access that I do. In fact, just last +night we had a conversation about that very issue. I know that +what you are saying, the issues that you are pointing out, are +important to solve; and I have to get that done. + Mr. Meek. Yes, General, that is important; and that is work +that needs to be done. + You are fully aware of the 9/11 Commission and what they +are doing. The whole issue on 9/11 was intelligence and sharing +of information, and we have so many--and I am not saying that +you or anyone in this building or in the Department devalues +the importance of making sure that State, local, the frontline +people that are putting their lives on the line every day, that +they have good information right here, right now. Your office +is responsible for that. + If something was to, unfortunately, take place or about to +take place in this country, there is always going to be an +evaluation of what took place; and I would say that in closed +session that you really drive home the importance of pushing +from the Hill of letting the intelligence agencies know that +they must--if they like it or not, if it is a fraternity or +sorority or whatever you want to call it, that your office has +to be at the forefront. If not, they are at the table, when +they get real information, to pass that on to those individuals +that are on the front lines. + Mr. Chairman, thank you for the extra additional time I +took myself. + But, General, I want to thank you. I believe that you are +committed, from what I can see. I have read your background. +You have been a patriot your entire life. But it is vitally +important that we do that, and I don't care if other folks get +upset about, oh, the Secretary went to the Hill and the next +thing you know, we have all these Members of Congress that are +barkingdown--I would rather barkdown their back. I would rather +make them upset of your presence here today versus the latter. + Thank you, Mr. Chairman. + Mr. Gibbons. Thank you, Mr. Meek. We will turn now to Ms. +Norton for 5 minutes. + Ms. Norton. Thank you very much, Mr. Chairman; and thank +you, General Hughes, for your testimony and, of course, for +this vital service you are rendering to our country. + I am interested in the fact that we may have gone from +having too little intelligence to having your analysts +bombarded with intelligence. I suppose that is better than if +we had only those two choices. That would be the better choice. + This past weekend or the weekend before last, I was with a +congressional delegation that went to Guantanamo. Actually, I +was very impressed with Guantanamo. I was impressed with the +kind of intelligence that our folks, most of them, Reserves, +public school teachers who are now interrogators--I was +particularly impressed with their methods which do not involve +the kind of coercion you see in movies but very sophisticated +rewards, harmless rewards, that are apparently getting real +intelligence, according to all we heard from those who briefed +us and from what we saw with our own eyes. We actually saw +people being interrogated, some very dangerous Al-Qa`eda being +interrogated. + At the same time, I represent the District of Columbia; and +I saw the effect of what must have been good intelligence when +at Dulles we had planes that were turned back or not allowed to +leave from Europe. What I am interested is, given this +intelligence from so many sources, how your analysts are able, +given the load of intelligence the likes to which they have +never seen before, to distinguish, for example, disinformation +from credible information. Here you have it coming at you from +all sources. We cannot tell whether some of what, for example, +we see here is just a case of people covering their you-know- +what just in case something happens could be disinformation-- +but even if it is, better to stop everything--or whether you +are able, given intelligence and an intelligence load the like +of which our analysts never had before, to decide whether or +not anybody could decide what was credible and what is +actionable. + Can you tell me how, given the fact that you are getting it +now, not just as the CIA used to get it, as the FBI used to get +it, but from any number of sources, how in the world you are +able to tell whether we are dealing with something that ought +to be acted on and particularly how you are able to distinguish +disinformation from credible information? + General Hughes. It is hard for me to answer that question, +and it is really a good topic for discussion. It might be a +better thing to come out and visit anytime you wish. I am happy +to have you and discuss that, or any member from this +committee, and have you discuss that in person. But I will give +you a brief answer. + The issues that you raised, whether or not we are getting +too much or a lot of information in a very complicated +information environment is accurate. We are getting a lot of +information, and some of it has a different kind of weight. +Some of it from law enforcement channels or from the local, +State, private sector is different than the information flow +that we normally were used to working with in the past. We are +coming to grips with that issue. + If I may draw a picture in the air for you for just a +moment, we are receiving foreign intelligence from the +traditional sources. We are receiving law enforcement +information from the law enforcement community. We are +receiving domestic information from a whole variety of +information sources, and we are also receiving information from +other sources like academia, the Internet, that sort of thing. +Bringing these four vectors together--foreign intelligence, law +enforcement, domestic information, and other sources of +information--together and associating them in the body of +knowledge is something new. I do not believe it has ever been +done before here in the United States. + So we are having to design a system--and that, actually, in +my view, is something I--maybe I should have said earlier. + Part of this evolutionary process is good, in my view, +because this is new and it is different. It is something that +has to be carefully done to avoid impinging upon the civil +rights and the constitutional rights of our citizenry while at +the same time meeting the needs of our government to defend +ourselves against people who will attack unwarned and +unprotected citizens. There are many features and facets of +this which I would have to tell you we have to defer to another +time and place for discussion. + But the last point I would like to make to you is the +information itself at times does seem to be faulty or flawed. +In fact, I have kind of a saying that some of my staff make fun +of me about. The first 12 reports are always wrong. The last +report, the 13th report, might be an approximation of truth. +That is kind of the way this is working. Because we are +bombarded by initial information of various kinds. Some of it +is truly intelligence about intentions and activities, some of +it about events that are happening and ongoing, much different +kinds of information realms; and when the information comes to +us, frankly, it is quite often flawed. Sometimes it might seem +to us to be disinformation, especially with regard to +intelligence. That is a judgment, experience, cross-checking, +cross-cutting kind of issue; and it is not easy to do, +especially in a very timely manner. + Ms. Norton. I appreciate your candor. When you say that, +essentially, one has to build a new system and you face that +fact, it seems to me very important, given the new +complications that have been now merged into intelligence +activity. + If the chairman will indulge me with a brief additional +question, there is, of course, and continues to be concern that +much of our intelligence from Iraq and places like that does +not come from the ground. We have difficulties that we are +trying now to overcome with language and the rest of it so that +on-the-ground intelligence, which means some kind of +infiltration into groups, is difficult abroad. + Well, here in the United State we would expect to be +further along with intelligence on the ground. I would like to +ask you how much of your intelligence comes--I mean, in the +United States, does a significant amount of your intelligence +within the United States come from infiltration, on-the-ground +intelligence that you are able to receive? I recognize that +there are language problems even there, but clearly people in +this country speak English. Is there yet a significant amount +of intelligence that you can derive from on-the-ground here in +the United States? + General Hughes. I think I understand your question. I would +say that that is a growing body of knowledge. It is not fully +developed yet. It is not being reported fully yet, in many +cases, but it is certainly the effort that we are putting forth +to try to get information from, actually, the people we serve. + I have addressed a number of forums now of State, local, +major city, tribal and private sector groups and asked them to +become part of our system; and to date all of them have been +very happy to accept that challenge. + Ms. Norton. I am sorry. What kind of groups did you say? + General Hughes. From State--all different kinds of people, +frankly--from local, tribal, major city, and private sector. So +that is kind of the spectrum--. + Ms. Norton. I am talking about, for example, we are told +over and over again there are cells across the United States. +Fine. Are we now part of those cells so we know what is going +on in those cells? + General Hughes. Yes, to the degree that we know about it. + I mean, there may be some things that I don't know, but I +would say that I am pretty well informed where it counts. + Ms. Norton. That, of course, would be of great importance +to us, given 9/11 and the fact that these men were on the +ground all that time talking to everybody but, of course, with +no intelligence coming back to us. + Thank you very much, Mr. Chairman. + General Hughes. I don't want to leave with you the thought +this is perfect. It is not. We need to work on it with great +effort. + Ms. Norton. Thank you, Mr. Chairman. + Mr. Gibbons. Thank you Ms. Norton. + General Hughes, I have known you for a number of years, +especially in your previous occupation as Director of the +Defense Intelligence Agency, and you have been before our +Intelligence Committee many times. I understand why you were +chosen to lead this newly created organization; and I have the +greatest respect for your background, your abilities, and look +forward to your leadership as you lead this from its inception +to its ultimate and hopefully effective utilization of this new +body. + I did want to make sure that we get a firm commitment from +you for an ultimate return to our committee for a classified +session. We are not going to do that today simply because you +have been very generous with your time. We have to be out of +this room, and it would take an enormous amount of time to +clear the room and make it right for a classified briefing. + Getting back to some of the things that I wanted to sort of +wrap up with, it is normal in the analysis function of +intelligence for people to disagree, because it is literally a +form of art. It is not a science. People tend to expect that +intelligence coming to us, raw intelligence, should lead a +course of one and only one conclusion. Sometimes that works; +sometimes that doesn't work. So a disagreement between educated +individuals, knowledgeable people about the meaning of raw +intelligence and sometimes disparate pieces of evidence can +lead to differing conclusions, differing estimates. That is, of +course, the part of the intelligence community that is one of +art rather than science; and I am sure that you understand +that. + With regard to your clearance and being where you are, as I +said, your previous life as the Director of the Defense +Intelligence Agency, you are the right person at the right time +for the right job. If someone else were sitting in your chair +without your experience, without your background, they would +have to go through a clearance and security process even though +they were the Assistant Secretary for Information Analysis +under the Department of Homeland Security. If they had not +previously acquired a classified background check, they would +have to go through that process. + So to say simply that you and your previous military +experience were immaterial to the process is wrong. I mean, the +reason you are in the position you are in is to expedite the +ability for the Department that you have to function +effectively. So I wanted to bring those out. + I again want to thank not just all the members of the +committee who have participated today but, most importantly, I +wanted to thank you, General Hughes. I don't know if I should +call you Secretary Hughes or General Hughes. You are very well +respected in your position, but I did want to thank you for +your candid assessment today. + We will have some questions that will be submitted to you. +We would appreciate your responding to them. + The record will be held open for 10 days; and with your +commitment, as I said earlier, to return for a classified +briefing at which time we can get into some finer granularity +on some of these intelligence issues, that would be great. Just +to get your commitment on the record, General Hughes, if you +could respond to that. + General Hughes. Mr. Chairman, I will certainly come before +this committee anytime you desire for any reason. You can rest +assured of that. + I would just like to say that I share a very positive +view--I mean, my experience with you has just been great over +these years and with some of the staff here. I hope you +appreciate, too, this personal relationship between a person +like me and some of the members here. It is a wonderful thing. +I am looking forward to serving the country with you, sir. + Mr. Gibbons. Thank you, General; and we, too, are looking +forward to your service again. It is always a pleasure to have +you before this committee. + With that, since we have kept you here the requisite time, +which has been 2 hours--and we know that you want to stay +longer, but we are going to let you go--this subcommittee +hearing is closed. + [Whereupon, at 12:32 p.m., the subcommittee was adjourned.] + + + A P P E N D I X + + ---------- + + + Questions Submitted for the Record + + Questions for the Record From The Hon. Jim Turner for General Patrick + Hughes + +Issue #1 + During the hearing, when you were asked whether you have immediate +access to relevant threat information from the Intelligence Community, +you responded: + ``My view to the answer is yes, I do, although, sometimes I + have to work hard to get it. It would be better. . .that I + don't have to reach out quite as much or to intercede on + occasion and gain information.''Later in the hearing, you + noted: + ``. . .there are shades of autonomy or automatic mechanisms + here. Sometimes I have to work a little harder to get that + information, depending upon the nature of the information + source.'' You confirmed the point again stating that ``At times + I have certainly been frustrated by it. . .I will have to tell + you that it is very much a concern of mine.'' + The fact that you are able to secure certain information because of +your ``old war horse'' status is reassuring on the one hand but +troubling in other respects. As you know, the Homeland Security Act +requires that ``Except as otherwise directed by the President, the +Secretary [ Homeland Security) shall have such access as the Secretary +considers necessary to all information, including reports, assessments, +analyses, and unevaluated intelligence relating to threats of terrorism +against the United States. . .''. + Thus, I would appreciate hearing from you what information sharing +mechanisms you believe ought to be in place right now to ensure that +all relevant threat information is delivered to the IA Office, +regardless of an Assistant Secretary's prior employment history +handling these issues or ability to secure information from past +colleagues still working in the Intelligence Community. + + My questions are as follows: +(1) What intelligence information is immediately accessible to the IA +Office? +(2) What intelligence information is accessible to the IA Office only +through TTIC? +(3) What intelligence information is accessible to the IA Office by +request? +(4) Can you provide examples of intelligence information that was +accessible only through your own direct and personal efforts by the +Assistant Secretary? +(5) What steps ought to be taken to improve the intelligence +information sharing process so that the IA Office Assistant Secretary +is no longer ``frustrated'' by having to ``work hard'' to receive all +related threat information, regardless of the ``nature of the +information source''? + +Issue #2 + I understand that the IA Office's ability to access information +from law enforcement agencies and the intelligence community depends, +in part, on the Homeland Security Information Sharing Memorandum of +Understanding which was signed on March 4, 2003 by Attorney General +Jolm Ashcroft, CIA Director George Tenet, and DHS Secretary Ridge. My +great concern, of course, is that the most sensitive intelligence +collected by the U.S. government, which I believe is more likely to +provide you timely and useful information on terrorist motivations, +strategy and actions, is too closely held and not always being +disseminated to you and your colleagues serving at the Department of +Homeland Security. + There is an element of arbitrariness, I would submit, about what +information is shared with the IA Office and what is excluded from your +review. Any light that you could cast on this subject, such as the +basis under which sensitive raw and finished intelligence is +disseminated to the Terrorist Threat Integration Center (TTIC) and the +IA Office, would be helpful in my understanding whether legislative +action could improve the process and ought to be pursued. + + Specifically, my questions are as follows: +(1) Does it make sense for you to be briefed on covert action programs +and terrorism--related DoD Special Access Programs so that you can +determine whether information derived from those activities are +relevant to securing the homeland? +(2) Should you have authority to review any other Intelligence +Community compartmented programs to determine, on an independent basis, +what should be shared with Secretary Ridge? +(3) Are there aspects to the MOU that require expansion or updating? +(4) Does the MOU give the IA Office sufficient leverage to secure +intelligence or law enforcement information that is highly classified? +(5) Who is the official responsible within the Intelligence Community +for deciding what intelligence threat information is shared with TTIC +and the IA Office, and how does the process unfold for making those +decisions? + +Issue #3 + I concurred with your testimony about where TTIC ultimately + resides. + ``My view. . .is that at some point we need to consider the + Terrorist Threat Integration Center coming under a different + kind of management structure, perhaps under DHS, perhaps under + an association of structures of some kind . . .''. + Further, you noted: + I do think, and I personally think the Director of Central + Intelligence would agree with this, at some point in time the + placement of the organization and its roles, missions and + functions with regard to central authority needs to be + reconsidered.'' + I am persuaded, too, that TTIC should be moved under the DHS +umbrella in order to improve and refine overall intelligence sharing +and am puzzled why, if you believe the DCI would view such action +favorably, there is not more active consideration of this matter within +the Administration. + Recognizing that DHS is a newly created organization and that +bureaucratic obstacles continue to affect the Department's overall +development, I would strongly urge you to press this issue with your +senior colleagues within the Intelligence Community. I believe TTIC's +separate operations from DHS hinders the level of connectivity +necessary to allow the government to effectively, and on a real-time +basis, integrate intelligence and disseminate threat analysis to our +local, community and state responders. + + My question is as follows: + (1) Would the connectivity between the DHS and TTIC be improved + if TTIC were moved to the Department? Short of moving TTIC, + what other steps should be taken to improve connectivity + between the two organizations? + +Issue #4 + I would welcome continuing updates from your staff to mine about +the IA Office's efforts to hire qualified personnel as quickly and +efficiently as possible. I share your substantial concern about +administrative delays inherent in the security clearance process and am +prepared to do everything I can to improve the current system. Your +testimony that the ``staffing level is not yet 50 percent of our hope'' +two and a half years after 9/11 leaves me discouraged and wondering why +DFIS is unable to expedite the hiring process to ensure that we have +sufficient intelligence and policy personnel onboard to help prevent +terrorists from striking our homeland all over again. + + Specifically, my questions are as follows: +(1) How many Full Time Equivalent (FTE5) employees currently work in +the IA Office? +(2) How many FTE slots have been authorized for FY 2004? +(3) How many FTE slots have been filled as of April 1, 2004? +(4) How many individuals are ready to be hired once they obtain +security clearances? +(5) Besides security clearance issues, what are the other key +administrative issues delaying the full staffing of the IA office? + +Issue #5 + It would be useful to better understand the different kinds of +analysis being conducted by your office on a daily basis. A February +2004 DHS Office of Inspector General Report (Survey of IAIP +Directorate--OIG-04-13) notes that intelligence information is +``analyzed and processed into a usable format for distribution.'' The +only documents that we receive directly from the IA Office are the +occasional threat warnings distributed to local law enforcement. In +furtherance of our oversight responsibilities, I would like to be +provided example copies of bulletins, threat analysis assessments, +competitive analysis documents, warnings and any other formats being +used to inform relevant partners both internal and external to DHS in +your return reply. + Moreover, I would like to receive an explanation regarding the +primary means of disseminating your classified and unclassified +analytic findings to entities within DHS and other federal, state, +local, and private sector partners. The OJG report notes ``the lack of +an agreed upon Information Technology (IT) infrastructure to +communicate with these partners inhibits the exchange of information.'' +That being the case, a key concern I have is how we ensure that +existing IT weaknesses are not the reason that we fail to detect +another attack against the homeland. + +Issue #6 + Since the IAIP Chief of Staff is responsible for managing the +Competitive Analysis and Evaluation Office (CAEO), I would like to hear +your views regarding why strategic red cell sessions and red teaming +does not fall under the purview of the IA Office. The bulk of +intelligence analysis is being conducted by your qualified staff, and I +am not convinced that the small number of full time equivalent +employees in CAEO (10 FTEs were authorized in this office in FY03) is +sufficient to accomplish this critical task. More generally, I am +concerned about the IA Office, and the Directorate as a whole, relying +too heavily on detailees and outside contractors instead of Full Time +Equivalent (FTEs) personnel, and would seek your views on the optimal +mix of workers to carry out the threat analysis mission. + + My specific questions, then, are as follows: +(1) How many detailees, and from which other agencies, does the IA +Office employ? How many outside contractor employees work in the IA +office? +(2)What role do you have in overseeing red cell sessions and red +teaming, if any? +(3)And should the functions of the CAEO fall under the jurisdiction of +your office? + In closing, let me thank you again for your testimony last month. I +look forward to learning more about your efforts to build an excellent +foundation for the IA Office. + + + +