Congressional Record (07 May 1998) [Page: H2970]
Ms. WATERS. Mr. Chairman, this amendment would call for a review of the 1995 memorandum of understanding that currently exists between the Director of Central Intelligence and the intelligence community and the Department of Justice regarding reporting of information concerning Federal crimes.
This amendment is very simple and non-controversial. It calls for a review of the current memorandum of understanding to ensure that drug trafficking and drug law violations by anybody in the intelligence community is reported to the Department of Justice. Specifically, the review would examine any requirements for intelligence employees to report to the Director of Central Intelligence and any requirements for the Director to report this information to agencies.
This information would be reported to the Attorney General. The review would be published publicly. This simple amendment fits well with the recent calls for a reinvigorated war on drugs. The need for this amendment, however, cannot be understated.
One of the most important things that came out of the hearing of the House Permanent Select Committee on Intelligence was an understanding about why we did not know about who was trafficking in drugs as we began to investigate and take a look at the allegations that were being made about the CIA's involvement in drug trafficking in south central Los Angeles and the allegations that profits from that drug trafficking was going to support the Contras.
We discovered that for 13 years the CIA and the Department of Justice followed a memorandum of understanding that explicitly exempted the requirement to report drug law violations by CIA non-employees to the Department of Justice. This allowed some of the biggest drug lords in the world to operate without fear that the CIA would be required to report the activity to the DEA and other law enforcement agencies.
In 1982, the Attorney General and the Director of Central
Intelligence entered into an agreement that excluded the reporting of narcotics
and drug crimes by the CIA to the Justice Department. Under this agreement,
there was no requirement to report information of drug trafficking and drug law
violations with respect to CIA agents, assets, non-staff employees and
contractors. This remarkable and secret agreement was enforced from February
1982 to August of 1995. This
Senator Kerry and his Senate investigation found drug traffickers had used the Contra war and tie to the Contra leadership to help this deadly trade. Among their devastating findings, the Kerry committee investigators found that major drug lords used the Contra supply networks and the traffickers provided support for Contras in return. The CIA of course, created, trained, supported, and directed the Contras and were involved in every level of their war.
The 1982 memorandum of understanding that exempted the reporting
requirement for drug trafficking was no oversight or misstatement. Previously
On February 11, 1982, Attorney General French Smith wrote to DCI William Casey that, and I quote, this is what he said:
I have been advised that a question arose regarding the need to add
narcotics violations to the list of reportable non-employee crimes . . . no
On March 2, 1982 William Casey responded:
I am pleased these procedures which I believe strike the proper
balance between enforcement of the law and protection of intelligence sources
and methods will
My colleagues heard me correctly.
The CHAIRMAN. The time of the gentlewoman from California (Ms. Waters) has expired.
(By unanimous consent, Ms. Waters was allowed to proceed for 3 additional minutes.)
Ms. WATERS. Mr. Chairman, the fact that President Reagan's
Attorney General and Director of Central Intelligence thought that drug
trafficking by their assets
This 1982 agreement clearly violated the Central Intelligence Agency Act of 1949. It also raises the possibility that certain individuals who testified in front of congressional investigating committees perjured themselves.
Mr. Chairman, every American should be shocked by these
revelations. Given the shameful history of turning a blind eye to CIA
involvement with drug traffickers,
At this time I know that there is a point of order against my
amendment. The chairman of the committee is going to oppose this amendment,
and so I am going to
We have a subsequent memorandum of understanding of 1995 that is supposed to take care of it. I am not sure that it does.
Mr. Chairman, I submit for the Record the following correspondence between William French Smith and William J. Casey:
Office of the Attorney General,
Hon. William J. Casey,
Dear Bill: Thank you for your
letter regarding the procedures governing the reporting and use of
information concerning federal crimes. I have reviewed the draft
I have been advised that a
question arose regarding the need to add narcotics violations to the list of
reportable non-employee crimes (Section IV). 21 U.S.C.
In view of our agreement regarding
the procedure, I have instructed my Counsel for Intelligence Policy to
circulate a copy which I have executed to each of the
William French Smith,
THE DIRECTOR OF
Hon. William French Smith,
Dear Bill: Thank you for your
letter of 11 February regarding the procedures on reporting of crimes to the
Department of Justice, which are being adopted under
I am pleased that these
procedures, which I believe strike the proper balance between enforcement of
the law and protection of intelligence sources and methods,
With best regards,