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Context of 'February 4, 2005: Study Finds CIA Paramilitary Units Should Not Be Transferred to Pentagon'

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A company called SCT attempts to purchase Inslaw, which designed the PROMIS database and search application. SCT is assisted by the New York investment bank Allen & Co., which helps with the finance for the proposed deal. The attempt fails, but, according to Inslaw’s founder William Hamilton, in the process a number of Inslaw’s customers are warned by SCT that Inslaw will soon go bankrupt and will not survive reorganization. Wired magazine will say that Allen & Co. has “close business ties” to Earl Brian, a businessman who is said to be interested in PROMIS software and who is well-connected inside the Ronald Reagan administration. [Wired News, 3/1993]

Entity Tags: Inslaw, Inc., Earl Brian, Reagan administration, SCT, William Hamilton, Allen & Co.

Timeline Tags: Inslaw and PROMIS

The Washington Times reports that an unpublished report by defense contractor Booz Allen Hamilton concludes that China is expanding its military and is “building strategic relationships” along sea lanes from the Middle East to Southern China” in ways that suggest defensive and offensive positioning to protect China’s energy interests, but also to serve broad security objectives.” The paper, titled “Energy Futures in Asia,” was commissioned by Donald Rumsfeld. China intends to protect the sea lanes militarily, by strengthening its navy and developing undersea mines and a missile system. The report warns that these capabilities could be used “to deter the potential disruption of its energy supplies from potential threats, including the US Navy, especially in the case of a conflict with Taiwan.” Beijing is also developing strategic alliances with the states along the sea lanes in an effort to increase its influence in the region. [Washington Times, 1/18/2005]
Pakistan - Beijing is constructing a naval base at the Pakistani port of Gwadar and setting up electronic eavesdropping posts in the city which will monitor ship traffic through the Strait of Hormuz and the Arabian Sea. [Washington Times, 1/18/2005]
Bangladesh - China is developing closer ties to Bangladesh and building a container port facility at the city of Chittagong. [Washington Times, 1/18/2005]
Burma (Myanmar) - China has established close relations with the military regime of Burma. It has provided Burma with “billions of dollars in military assistance to support a de facto military alliance,” is building naval bases there, and has already positioned electronic intelligence gathering facilities on islands in the Bay of Bengal and near the Strait of Malacca. Burma’s location is of strategic importance to Beijing because of its close proximity to the Strait of Malacca, through which 80 percent of China’s imported oil is shipped. [Washington Times, 1/18/2005]
Cambodia - In November 2003, China agreed to provide training and equipment to Cambodia’s military. China and Cambodia are engaged in a joint effort to build a railway from southern China to the sea. [Washington Times, 1/18/2005]
Thailand - China may fund a $20 billion canal that would cut across the Kra Isthmus and allow ships to bypass the Strait of Malacca. [Washington Times, 1/18/2005]

Entity Tags: Donald Rumsfeld, Booz Allen Hamilton

Timeline Tags: US International Relations

President George Bush issues a presidential directive establishing an interagency group to consider whether it “would best serve the nation” to give the Pentagon complete control over the CIA’s elite paramilitary units. [Associated Press, 11/22/2004; New York Times, 11/23/2004; New Yorker, 1/24/2005 Sources: unnamed pentagon consultant] The units carry out the government’s most sensitive covert operations including “training rebel forces; destabilizing governments and organizations through violence; and directly attacking enemy targets and individuals.” [Associated Press, 11/22/2004] CIA paramilitary activities are conducted under presidential directives called “findings.” [New York Times, 11/23/2004] The panel will consist of representatives from the State and Justice Departments, the Pentagon, and the CIA. Critics of the proposal, including veteran members of special operations branches, note that CIA units operate “under a different set of findings and carry different legal protections than the military, in particular for cases in which they are ordered to conduct the most extreme clandestine operations,” the New York Times reports. Other critics say the move, which is based on a recommendation by the 911 Commission, is part of a Pentagon strategy to wrest control of covert operations from the CIA. Thomas W. O’Connell, the assistant defense secretary for special operations and low-intensity conflict, denies this, telling the New York Times, “I have heard it said that there is a conspiracy within the Department of Defense to go and rip off the agency’s capabilities, and I can assure you that nothing could be further from the truth.” [New York Times, 11/23/2004] Apparently in February 2005 the decision is made not to give control of the CIA’s units to the Pentagon (see February 4, 2005).

Entity Tags: Howard Hart, George W. Bush

Timeline Tags: US Military

Senior defense officials say that a preliminary study commissioned by the Pentagon has concluded that authority over the CIA’s paramilitary units should not be transferred to the Pentagon. The study, conducted by the Booz Allen Hamilton law firm in McLean, Virginia, reviewed the 9/11 commission’s recommendation that CIA paramilitary operations be consolidated under Special Operations Command in Tampa, Florida. Booz Allen Hamilton’s conclusions were based on a series of tabletop war games in which veteran CIA officers and Special Operations soldiers “explored how each agency’s paramilitary units would respond to different contingencies, including threats involving terrorists and weapons of mass destruction and missions to train indigenous fighters or gain control of ungoverned territory,” the Washington Post reports. A senior defense official familiar with the study tells the newspaper, “If you take the very small paramilitary capabilities away from the CIA, in my view, it would limit their ability to conduct foreign intelligence activities which they are required by law to do.” Furthermore, he adds, “we don’t have the legal authorities to be doing what the CIA does, so getting all those assets doesn’t make any sense.” [Washington Post, 2/5/2005]

Entity Tags: US Department of Defense, Booz Allen Hamilton, Central Intelligence Agency

Timeline Tags: US Military, Complete 911 Timeline

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