S. HRG. 111–125 NOMINATION OF DENNIS C. BLAIR TO BE DIRECTOR OF NATIONAL INTELLIGENCE HEARING BEFORETHE SELECT COMMITTEE ON INTELLIGENCE OFTHE UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JANUARY 22, 2009 Printed for the use of the Select Committee on Intelligence ( Available via the World Wide Web: http://www.access.gpo.gov/congress/senate U.S. GOVERNMENT PRINTING OFFICE 52–505 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\52505.TXT SHAUN PsN: DPROCT SELECT COMMITTEE ON INTELLIGENCE [Established by S. Res. 400, 94th Cong., 2d Sess.] DIANNE FEINSTEIN, California, Chairman CHRISTOPHER S. BOND, Missouri, Vice Chairman JOHN D. ROCKEFELLER IV, West Virginia ORRIN G. HATCH, Utah RON WYDEN, Oregon OLYMPIA J. SNOWE, Maine EVAN BAYH, Indiana SAXBY CHAMBLISS, Georgia BARBARA A. MIKULSKI, Maryland RICHARD BURR, North Carolina RUSSELL D. FEINGOLD, Wisconsin TOM COBURN, Oklahoma BILL NELSON, Florida JAMES E. RISCH, Idaho SHELDON WHITEHOUSE, Rhode Island HARRY REID, Nevada, Ex Officio MITCH MCCONNELL, Kentucky, Ex Officio CARL LEVIN, Michigan, Ex Officio JOHN MCCAIN, Arizona, Ex Officio DAVID GRANNIS, Staff Director LOUIS B. TUCKER, Minority Staff Director KATHLEEN P. MCGHEE, Chief Clerk (II) VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\52505.TXT SHAUN PsN: DPROCT CONTENTS JANUARY 22, 2009 OPENING STATEMENTS Feinstein, Hon. Dianne, Chairman, a U.S. Senator from California .................. 1 Bond, Christopher S., Vice Chairman, a U.S. Senator from Missouri ................ 3 Inouye, Hon. Daniel K., a U.S. Senator from Hawaii ........................................... 10 Prepared statement .......................................................................................... 11 WITNESS Blair, Dennis C., Director of National Intelligence-Designate ............................. 12 Prepared statement .......................................................................................... 13 SUPPLEMENTAL MATERIALS Prepared statement of Hon. Russ D. Feingold, a U.S. Senator from Wisconsin 27 Questionnaire for Completion by Presidential Nominees .................................... 52 January 12, 2009 Letter from Robert I. Cusick, Office of Gevernment Ethics, enclosing a copy of the Public Financial Disclosure Report of Dennis C. Blair ...................................................................................................................... 79 January 21, 2009 Letter from Dennis C. Blair to the Honorable Dianne Feinstein ............................................................................................................... 94 February 4, 2009 Letter from Robert I. Cusick, Office of Government Ethics to Senator Dianne Feinstein ............................................................................... 96 Responses to Questions for the Record .................................................................. 103 (III) VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\DOCS\52505.TXT SHAUN PsN: DPROCT VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\DOCS\52505.TXT SHAUN PsN: DPROCT NOMINATION OF DENNIS C. BLAIR TO BE DIRECTOR OF NATIONAL INTELLIGENCE THURSDAY, JANUARY 22, 2009 U.S. SENATE, SENATE SELECT COMMITTEE ON INTELLIGENCE, Washington, DC. The Committee met, pursuant to notice, at 10:04 a.m., in Room SH–216, Hart Senate Office Building, the Honorable Dianne Fein- stein (Chairman of the Committee) presiding. Committee Members Present: Senators Feinstein, Rockefeller, Wyden, Bayh, Feingold, Nelson of Florida, Whitehouse, Levin, Bond, Hatch, Snowe, Chambliss, Coburn, and Risch. OPENING STATEMENT OF HON. DIANNE FEINSTEIN, CHAIRMAN, A U.S. SENATOR FROM CALIFORNIA Chairman FEINSTEIN. I am very pleased and honored to convene this first public meeting of the Senate Select Committee on Intel- ligence in the 111th Congress. I’d like to introduce at least one new member who is here, Tom Coburn, the distinguished Senator from Oklahoma. We’re delighted to have you join the Committee. And Senator Risch is also a new member from Idaho and he will be coming shortly. I’d like to proceed this way. I’d like to make an opening state- ment. I will then turn to the Vice Chairman for any remarks he might have. And the former Chairman of the Committee, the dis- tinguished Senator Rockefeller, has asked for some time as well. After Admiral Blair gives his opening statement, we’ll use the early bird rule for five-minute rounds. Of course, just prior to Admiral Blair making a statement we’ll introduce the Senator from Hawaii, Daniel Inouye, who will introduce him. I would like to just make a couple of comments about the func- tioning of this Committee. Let me begin by saying that I very much look forward to working with this Committee and with Vice Chair- man Bond. We’re trying to get the Committee to operate smoothly and with the whole staff, Democratic staff and Republican staff, working together for the entire Committee. It is my major goal to continue the trend of increasing oversight of the intelligence community. As one means of doing it, Admiral Blair and I discussed having monthly sessions where he will come in with the Director of the CIA and other key officials to share thoughts on what the intelligence community is doing and how well it is doing. I really want to acknowledge Senator Rockefeller, the former chairman of this committee, who has served as both Chairman ac- (1) VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT 2 tually and Vice Chairman over the past six years. He’s done a ter- rific job and I hope to do as well. Finally, I welcome President Obama’s nominee to be Director of Intelligence, Admiral Dennis Blair. Admiral Blair is known to many of us from his years of service as the CINCPAC, the com- mander-in-chief of the United States Pacific Command. He served in the national security field all of his adult life, attending the Naval Academy and serving in the Navy from 1968 to 2002. He worked twice in the White House, first as a fellow and then on the National Security Council staff. He worked for two years at the CIA as the associate director for military support. And he was named to be the director of the Joint Staff in 1996. Admiral Blair has been a consumer of intelligence through his career, as well as the manager of naval and theater intelligence as- sets. He’s had interactions at the top levels with intelligence agen- cies, including his two years spent on the seventh floor of CIA headquarters down the hall from the Director’s office. I called former Secretary of Defense Bill Perry and asked him about Admiral Blair, and here’s what he said. He said I appointed him to the Joint Chiefs when he was a two-star, and he was one of those who could think outside of the box. I think that is a real compliment. If confirmed, Admiral Blair will become the nation’s third Direc- tor of National Intelligence, following Ambassador John Negroponte and Admiral Mike McConnell. Now let me just stress this. As one who actually put forward the first DNI legislation, the role of the DNI is to be the leader of the 16 intelligence agencies that make up the intelligence community. The law creating the position, the Intelligence Reform and Ter- rorism Prevention Act of 2004 gives the DNI three principal re- sponsibilities. He is the head of the intelligence community. He is the principal adviser to the President, the National Security Coun- cil, and the Homeland Security Council for intelligence matters re- lated to national security, and he is in charge of overseeing and di- recting the implementation of the National Intelligence Program, which means he controls the intelligence budget. The position of the Director of National Intelligence was created so there would be a single leader of the 16 agencies that make up the community to see that the stovepipes that characterize the pre- 9/11 world are done away with. The intent was to create an execu- tive with budget and policy authority. He would assure that the in- telligence community provides the President, the Congress, and other policymakers with accurate, actionable intelligence. That’s a substantial challenge that Admiral Blair, if confirmed, will face. There is a need for intelligence on what is going on around the world, a world that has grown more complicated due to the rise of asymmetric warfare and the growth of a rigid fanati- cism. To make matters more difficult, the credibility of intelligence analysis was severely damaged by the October 2002 National Intel- ligence Estimate on Iraq’s weapons of mass destruction. This must never happen again, and it is my main goal to see that all systems are in place to prevent it from ever happening again. VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT 3 Also, the legality and morality of intelligence operations were thrown into doubt by warrantless wiretapping and the use of coer- cive interrogation techniques. In my view, the President is taking necessary action today in introducing Executive Orders to close Guantanamo and end CIA coercive interrogation practices. I also appreciate the steps the new Administration has taken to discuss these matters with me and with the Committee. Yesterday the President’s Legal Counsel came before the Committee and briefed us on these prospective Executive Orders. So I hope it signals a new day in having an open and cooperative relationship between these branches of government. From my review of your record, Admiral Blair, I am hopeful that you will be an effective leader for the intelligence community in meeting these challenges. I trust you will be part of an administra- tion that will restore the partnership of the executive and legisla- tive branches, insuring the national security and keeping our coun- try safe and strong. With that, I turn to Vice Chairman and then the former Chair- man for their remarks. OPENING STATEMENT OF CHRISTOPHER S. BOND, VICE CHAIRMAN, A U.S. SENATOR FROM MISSOURI Vice Chairman BOND. Thank you very much, Madam Chairman. I have the honor to be the first one to say that in the first hearing of this Committee in the 111th Congress, and I congratulate pub- licly on becoming the first woman in history to chair the Senate Se- lect Committee on Intelligence. My colleagues and I look forward to your leadership on the Committee with, with the strong working relationship that you and I have had over the years in the Senate I am confident that we can and will work together on a vast array of issues of intelligence for the benefit of the American people. My staff director tells me and I have seen the staff relations on the Committee have dramatically improved already. There’s been tremendous progress made in the day-to-day operations of the Committee. I know that you are responsible for directing these changes, so I thank you, Madam Chair, and I think there will be a great benefit from our staff in this Congress as we work together on a bipartisan basis, utilizing all of the talents of all of the great staff people we have. Madam Chair, I join with you in welcoming Senator Coburn and Senator Risch, who have great reputations and will be excellent members of the Committee. Turning to today’s hearing, Admiral Blair, I welcome you before the Committee for the hearing on your nomination. I extend a warm welcome to your wife Diane and we thank you, Diane, for standing by your husband all the years in the military and now for your willingness to support him in taking on the important position in the service of his country. Admiral, as you know, your nomination comes at an important time in our nation’s history. We face threats of many different kinds, of terrorism and other state actions. Unfortunately, it seems to me that some tend to forget the direct assault on this country on September 11, over seven years ago. The lessons we’ve learned from that day that those responsible have VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT 4 avowed to inflict more harm and death upon us. Those who forget are content maybe to go back to the older ways of doing business. They argue terrorists should be tried as ordinary criminals, not ter- rorists captured on the battlefield—unlawful combatants. They call for terrorists be given the same constitutional protec- tions as our citizens. Benefiting from a government that has kept America free from from further attack over the past seven years, they forget that our entire way of life is just a few minutes away from annihilation if terrorists were to succeed in obtaining a weap- on of mass destruction or carry out an unrecoverable attack on our nation’s infrastructure. In contrast to those who may forget, however, the fine men and women of the intelligence community at large that you will be lead- ing, I have met with them continually throughout the six years I served on this Committee. And they wake up every day remem- bering the September 11 catastrophe. They understand their mis- sion well. Each day it’s the same—to keep our nation and citizens safe in the face of increasing threats by collecting, analyzing and disseminating critical intelligence for policymakers and com- manders. It’s critical that the next DNI be committed to playing offense against those who threaten our way of life. He must be committed to this task, but he cannot afford to be a one trick pony who only knows counterterrorism. But you must focus on the myriad of other challenges we face in the 21st century. Let me pause to say just a word about the man you are suc- ceeding. In many different positions Admiral Mike McConnell has served this country honorably and with distinction. Three years ago he returned to government service, answering the President’s call to lead the intelligence community. I think this country and we owe Admiral McConnell a great debt of gratitude. Chief among them are his yeoman efforts working with this Com- mittee and the Congress on the passage of much, much needed up- dates to the Foreign Intelligence Surveillance Act, first with the Protect America Act of 2007 and later with the FISA Act amend- ments of 2008. Amidst strong opposition and oftentimes unfair crit- icism, he acted with great integrity and was thrown headfirst into one of the most controversial debates we’ve had in some time. The updates of FISA have given our dedicated intelligence com- munity professionals the tools and authorities they need to stay ahead of terrorists, and they did so, adding things that this Com- mittee on a bipartisan basis added to ensure and protect the con- stitutional rights and the privacy rights of American citizens. Collecting information on a good day is an incredibly difficult job. Fortunately, the new authorities, along with significant improve- ments we made in the USA PATRIOT Act, have made it a more manageable task. Admiral, hope you have spoken with Admiral McConnell about what lies ahead. He said you’ve had some good conversations. I’m sure he will offer you unique perspectives and sound advice. Only one other person has served in that role, and I will speak for my colleagues when I say that Admiral McConnell’s experience, integ- rity and dedication to the intelligence community were significant and we will miss him. VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT 5 Although there have been many improvements under Admiral McConnell’s leadership as the DNI, we’re still a long way from full and complete reform of the intelligence community. When Congress created the office of the Director of National Intelligence in 2005, there was a strong sense that the intelligence community lacked clear direction and cohesivenes. IRTPA of 2004 tried to fix that by creating a DNI to lead the community. I voted against the legislation then, and I believe now that the DNI was given a tremendous amount of responsibility without the requisite authority to do the job. In my view, we either should not have created the DNI and just looked to strengthen the community relationship, or we should have given or should now give the DNI the authority commensurate with the responsibility we have landed upon him. We need to get this balance right and get rid of turf issues that keep popping up. To do this we need two things—action by Con- gress and a commitment by you, if you are confirmed as the next DNI, to direct the community. Let me stress the word ‘‘direct.’’ Over the past year Admiral McConnell started referring to himself as a coordinator rather than a director, in recognition that he did not have the statutory authority to which I refer. That point is the utmost of the utmost importance, Admiral. The House and Senate Committees, oversight committees, are divided on this issue, but it’s quite clear in comparing the House and Sen- ate intelligence authorization bills that never became law, I might add, that the Senate generally favors a director and the House fa- vors a coordinator. We can’t keep looking in both directions, though, and your views on this matter will be very important. And I’d like to know your position on this before we leave here today. Speaking of authorization bills, you may be aware this Com- mittee has not had an annual authorization bill signed into law for the last four years. The Chair and I are dedicated to breaking that record and getting this Committee back to bipartisanship, passing authorizations, hopefully in the very near future. I realize there are some individuals who haven’t minded the ab- sence of an intel bill, but I believe our inability to get a bill signed has been a serious mistake. It made the people’s oversight through this Committee less relevant and it supports the notion that con- gressional oversight is dysfunctional. This is a charge leveled by many of the commissions and committees that have looked at intel- ligence. Authorization of the intelligence programs is important because they foster a good working relationship between this Committee and the community; ideas flow both ways, everyone works together to make sure that the IC can fulfill its ultimate mission of keeping this country safe. But it also gives the Committee in its oversight role an oppor- tunity to offer effective solutions when necessary. For the past sev- eral years, I have sponsored a number of what I like to call good government provisions that I hope will soon become law, provisions that attempt to restore accountability and sound fiscal manage- ment to the IC. For example, we would give the DNI authority to conduct ac- countability reviews of an IC element or personnel in relation to a VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT 6 failure or deficiency within the community. Too often we’ve seen poor judgment or serious mistakes go uncorrected or, even worse, at times people who exercised poor judgment have been promoted or otherwise rewarded, and I think that’s unacceptable. Giving the DNI the authority to step in and conduct these reviews will encour- age accountability and good practices. Admiral, I hope that when you’re confirmed as the DNI you will use this authority to send a message that poor performance will not be tolerated, let alone rewarded. It’s not a matter of microman- aging the agencies or overlooking the shoulder of the agencies’ di- rectors. It’s about ensuring that there be a clear standard of ac- countability throughout the community and regaining the con- fidence in the community’s analysis that has certainly had its share of problems in the recent past. You’ll be responsible for this, and the Committee will hold you responsible for it. We require the DNI to conduct annual personnel level assess- ments. We want to make sure we have enough fine men and women to do the job, but growing the IC without a clear plan could create an unnecessary bureaucracy and waste hard-earned tax- payer dollars. Third, I have sponsored a number of related provisions designed to get a handle on an acquisition and budget process that has grown out of control. At a time when the taxpayers of this country are struggling to pay their bills, they do not want to see their hard- earned tax dollars squandered on programs that do not work. They want to see the intelligence community spending the taxpayers money wisely. I’m not suggesting the severe budget cuts that at the conclusion of the Cold War gutted our intelligence capabilities should be reen- acted. Rather, the DNI must make sure that the money is being spent in the right place to address the threats we face now and ex- pect in the future. In this regard, Senator Mikulski and I have sponsored a solution that this Committee has recommended to address our nation’s overhead architecture system that promises to save the taxpayers, we believe, potentially billions of dollars. We can talk more about that in another setting. It is my hope, Admiral Blair, that all these provisions will be signed into law soon and that this Committee will be on track with its authorization process. If you’re confirmed, when you’re con- firmed, I look forward to working with you on these. Additionally, the Committee will work with you and look to you to get a handle on the agency’s budget and personnel levels. We ex- pect you will find innovative ways to create career paths and op- portunities that are attractive to employees so the IC can not only recruit but retain the best. Additionally, the IC needs a strong leader who can stand on equal footing with the Secretary of Defense and other Cabinet offi- cials. There may be occasions when the interests of the Secretary of Defense are not compatible with the intelligence community in- terests. I expect that, if necessary, you will be assertive in these cases and not back down. The intelligence community deserves no less from you. VerDate Nov 24 2008 12:50 Oct 26, 2009 Jkt 050107 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 C:\DOCS\52505.TXT SHAUN PsN: DPROCT