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09/06/2004:

"Spy Case Renews Debate Over Pro-Israel Lobby's Ties to Pentagon"

by James Risen and David Johnston
WASHINGTON, Sept. 5 - It began like most national security investigations, with a squad of Federal Bureau of Investigation agents surreptitiously tailing two men, noting where they went and whom they met. What was different about this case was that the surveillance subjects were lobbyists for the American Israel Public Affairs Committee, and one of their contacts turned out to be a policy analyst at the Pentagon.

The ensuing criminal investigation into whether Aipac officials passed classified information from the Pentagon official to Israel has become one of the most byzantine counterintelligence stories in recent memory. So far, the Justice Department has not accused anyone of wrongdoing and no one has been arrested.

Aipac has dismissed the accusations as baseless, and Israel has denied conducting espionage operations in the United States.

Behind the scenes, however, the case has reignited a furious and long-running debate about the close relationship between Aipac, the pro-Israel lobbying organization, and a conservative group of Republican civilian officials at the defense department, who are in charge of the office that employs Lawrence A. Franklin, the Pentagon analyst.

Their hard-line policy views on Iraq, Iran and the rest of the Middle East have been controversial and influential within the Bush administration.

"They have no case,'' said Michael Ledeen, a conservative scholar at the American Enterprise Institute and a friend of Mr. Franklin. "If they have a case, why hasn't anybody been arrested or indicted?''

Nearly a dozen officials who have been briefed on the investigation said in interviews last week that the F.B.I. began the inquiry as a national security matter based on specific accusations that Aipac employees had been a conduit for secrets between Israel and the Pentagon. These officials said that the F.B.I., in consultation with the Justice Department, had established the necessary legal foundation required under the law before beginning the investigation.

A half dozen people sympathetic to Aipac and the civilian group at the defense department said they viewed the investigation in different terms, as a politically motivated attempt to discredit Aipac and the Pentagon group. Supporters of Aipac have said the organization is being dragged into an intelligence controversy largely because of its close ties to a Republican administration and the Israeli government of Prime Minister Ariel Sharon.

Friends and associates of the civilian group at the Pentagon believe they are under assault by adversaries from within the intelligence community who have opposed them since before the war in Iraq. The Pentagon civilians, led by Paul D. Wolfowitz, the deputy defense secretary, and Douglas J. Feith, the undersecretary for policy, were among the first in the immediate aftermath of the Sept. 11 attacks to urge military action to topple the regime of Saddam Hussein in Iraq, an approach favored by Aipac and Israel.

Mr. Wolfowitz and Mr. Feith were part of a larger network of policy experts inside and out of the Bush administration who forcefully made the case that the war with Iraq was part of the larger fight against terrorism.

The Pentagon group circulated its own intelligence assessments, which have since been discredited by the Central Intelligence Agency and by the independent Sept. 11 commission, arguing that there was a terrorist alliance between the Hussein regime and Al Qaeda.

The group has also advocated that the Bush administration adopt a more aggressive policy toward Iran, and some of its members have quietly begun to argue for regime change in Tehran. The administration has not yet adopted that stance, however, and the Pentagon conservatives have been engaged in a debate with officials at the State Department and other agencies urging a more moderate approach to Iran.

Full Article: New York Times

It's hard to figure out what's going on here, but it seems like there are whistleblowers who are willing to take Wolfowitz, Ledeen, et al, on. The issue is not about feeding intel to Israel, that's for sure. The CFR is strongly against taking Iran on militarily, at least for now. I keep saying this, but Bush might really get Watergated after his re-election.