Enron Mail

From:drew.fossum@enron.com
To:lorraine.lindberg@enron.com
Subject:Re: Richardson testimony - (this gets ugly)
Cc:kevin.hyatt@enron.com, steven.harris@enron.com, tmonaldo@mrg-llc.com
Bcc:kevin.hyatt@enron.com, steven.harris@enron.com, tmonaldo@mrg-llc.com
Date:Thu, 22 Jun 2000 06:41:00 -0700 (PDT)

This is horrible. In all my years in DC I don't remember any administration
official (let alone a cabinet member) getting trashed this badly except maybe
Ollie North during Iran Contra. Tino, lets add this to the list of issues we
need to jointly think through. DF




Lorraine Lindberg
06/21/2000 02:24 PM
To: Drew Fossum/ET&S/Enron@ENRON, Kevin Hyatt, Steven Harris/ET&S/Enron@ENRON
cc: tmonaldo@mrg-llc.com

Subject: Richardson testimony - (this gets ugly)

Richardson says FBI has determined drives did not leave Los Alamos
June 21, 2000
Web posted at: 3:00 PM EDT (1900 GMT)


By Ian Christopher McCaleb/CNN

WASHINGTON -- Two highly sensitive computer hard drives that were missing
from the Los Alamos National Laboratories earlier this year never left the
premises, and the FBI has uncovered no hints of espionage in the case, Energy
Secretary Bill Richardson told a Senate committee Wednesday.


Energy Secretary Bill Richardson

The two hard drives, each smaller than a deck of playing cards, held vital
nuclear weapons secrets and were stored in a secured vault at the storied New
Mexico nuclear weapons laboratory.

In a statement opening a lengthy and touchy hearing of Senate Armed Services
Committee, Richardson said: "Based upon the investigation by the FBI so far,
there is no evidence of espionage, nor is there evidence the drives have ever
left Los Alamos."

Richardson added that the FBI seems to be on the verge of reconstructing what
happened to the drives, saying, "Latent fingerprints were found on the scene,
and on the external wrappings of the drives themselves."

The FBI continues to comb the "crime scene" -- a room housing a copy machine
-- and a grand jury has been convened, Richardson said, punctuating his
statement with a declaration that a handful of so-called Los Alamos
"X-Division" employees have offered conflicting statements to investigators.

The secretary speculated that the disappearance of the hard drives may have
been an unintentional mistake by a lab employee, who feared coming forward
when alarms were raised.

"I will not take (disciplinary) action until I have all the facts before me,"
he said, vowing, "I will not rest until I know what happened -- when, where,
why and by whom."

The FBI has said the drives disappeared "at the tail-end of March of this
year, March 28," Richardson said. Should the FBI's timeline prove correct,
reports issued at the beginning of this week that the drives have been
missing since January could be called into question.

The two hard drives were discovered missing on May 7, when weapons scientists
took an inventory of the drives stored within a vault at the laboratory's
X-Division as a massive wildfire approached the facility. The section is
perhaps the most sensitive area of the facility, and is where the most
classified nuclear weapons research, design and development is undertaken.

The scientists had been tasked with checking to assure that all of the
division's drives were safely within the vault in the event that the lab
would have to be evacuated. An evacuation was ordered the next day because of
the fire threat, but no one reported the drives missing until May 31,
sparking a massive search of the area -- and deep anger in Washington.

The drives contain vital information on the makeup of U.S., Russian, Chinese
and French nuclear weapons. They mysteriously reappeared last Friday in a
room at the lab that already had been searched several times.

Richardson taken to task early, and often
Richardson's pledge to bring accountability to bear on those responsible for
the missing drives was met with cold stares from committee members of both
parties. Members of the Senate have awaited the secretary's appearance for
several days, after he last week declined an opportunity to offer Senate
testimony, saying he wanted to wait until he had more information.


Sen. Strom Thurmond

The safety of weapons secrets has dogged Richardson for much of his tenure as
Energy Secretary. During his watch, Los Alamos scientist Wen Ho Lee was
removed from his position amid charges of spying. He has been formally
charged with mishandling classified information -- not espionage -- and
awaits trial.

Members of Congress have also raised red flags over the reported sale of
computers once used at the Savannah River nuclear weapons facility in
Augusta, Georgia. Those computers, two senators intimated Wednesday, may have
once contained classified information that could have been reconstructed by
their new owners.

Sen. Strom Thurmond (R-South Carolina) suggested at Wednesday's hearings that
some of the Savannah River computers may have been sold to the People's
Republic of China.


Sen. John Warner

In his opening statement, Armed Services Chairman John Warner (R-Virginia)
lined Richardson himself up for accountability, saying that although
Richardson has worked to change the security culture at the Energy Department
and the national laboratories, ultimately, responsibility for ongoing lapses
rests with him.

"Mr. Secretary," Warner said directly to Richardson, "On June 23rd of last
year you told this committee, in this room: 'The secretary of Energy,' and I
quote you, '...must be accountable and must be responsible" for such security
failures.

" ... We are holding you accountable," Warner said. "These incidents happened
on your watch. Like the captain of a ship, you must bear full
accountability."

Appearing at the hearing, Sen. Richard Shelby (R-Alabama), chairman of the
Senate Select Committee on Intelligence, repeated his earlier calls for
Richardson's resignation, saying, "I think it's time for you to go."

Harsher still was the criticism leveled by Sen. Robert Byrd (D-West
Virginia), a member of Richardson's own party, who said Richardson's pledges
to get to the bottom of the case would not sway the opinion of the Senate,
whose trust he had lost permanently.


Sen. Richard Shelby

"The horse is out of the barn," Byrd said. Referring to Richardson's refusal
to testify last week, Byrd said, "You've waited and shown contempt of
Congress that borders on supreme arrogance."

Speaking directly to Richardson, a one-time congressman and former Ambassador
to the United Nations, Byrd said, "You had a bright and brilliant career, but
you will never again receive the support of the U.S. Senate for any office
you seek. You have squandered your treasure."

Richardson, who at times looked stunned by the tone taken by many committee
members, sought to defend himself -- arguing that he wanted to have "all the
facts" in hand before making a congressional appearance. He added that he had
made vast changes in the security culture at the department and in the
nation's weapons laboratories, and had put off a good many longtime employees
as a consequence.

"I've been excoriated, but if you go into the scientific and academic
community, I am driving scientists away." He also said he has been accused of
racism in the Wen Ho Lee case, and has had to battle members of own party who
saw regular polygraph tests for employees as a violation of civil rights.

Sen. James Inhofe (R-Oklahoma) suggested that the "captain of the ship"
wasn't Richardson, but President Bill Clinton, who Inhofe said was
responsible for a variety of security policy changes and leaks to the media
that have led to a relaxed, careless attitude among those charged with
overseeing the nation's weapons secrets.

'Serious loss of control over classified information'
Also appearing before the panel was Dr. John Browne, director of the Los
Alamos facility.


Dr. John Browne

Browne, while attempting to illustrate for panel members -- with charts --
just how difficult it is to gain access to the X-Division, admitted that his
security operatives have lost control over how classified information is
handled -- mainly because there is no set procedure to determine who handled
much of the material and when.

"This is not an environment one can easily get into," he said.

Still, Browne said, "there is a serious loss of control over classified
information at my laboratory," adding, perhaps for the benefit of committee
members, that he had "no knowledge that the information has been compromised
or tampered with.

"From a national security perspective, these are positive indications."

Richardson was congratulated by Sen. Pete Domenici (R-New Mexico) for ceding
all weapons security issues to a newly confirmed director of a
semi-autonomous agency formed to assess and reformulate all security
procedures.


Sen. Pete Domenici

Air Force Gen. John Gordon, confirmed by the Senate to helm the agency but
not as yet sworn into the post, will report to Richardson, but will not be
directed by anyone else at the Energy Department.

The Senate had held up Gordon's confirmation for months for unspecified
reasons, but he was unanimously confirmed last week after news of the hard
drives' disappearance was released.

"The best thing you could do to leave a legacy for America in terms of
nuclear weapons is to [get this agency operational]," Domenici said, scolding
Richardson not to engage in any "dual-hatting," and let Gordon make the
changes he needs to make.

Warner was less congratulatory, warning Richardson outright that he must
honor the 1999 law creating the agency and allow it to go about its business
unfettered.

The panel closed its session to the public and members of the media just
after noon on Wednesday so specifics of the case could be discussed. Domenici
predicted earlier in the day that a closed session would yield much more in
the way of disturbing information.

"We could go into a closed session, and you wouldn't believe the things you'd
hear in there," he said. "These things have to be corrected too."

When proceedings ended at mid-afternoon, Richardson told reporters he just
wanted "to do his job" and conclude the investigation. He said the fallout
from the security breach was "too political," adding, "I did not utter one
partisan word in that committee."

'Conflicting statements'
Initially, Air Force Gen. Eugene Habiger, the Energy Department's top
security officer, and Los Alamos Lab Director John Browne said in
congressional testimony that a scientist had reported seeing the two devices
in the vault on April 7, a month before they were found missing and seven
weeks before senior lab officials were notified.


Gen. Eugene Habiger

But sources familiar with the investigation told CNN on Tuesday that this
account has come under suspicion because of "conflicting statements" made
during interviews and polygraph tests.

Another individual has told investigators he went into the vault on April 27
and would have noticed if they had been missing then, but does not recall
actually seeing them.

What's clear, said Goss, is that there was inadequate tracking on paper of
the use of the two drives, which belonged to an emergency nuclear response
team. Members of the team, known as NEST, have been the focus of the FBI
criminal investigation. The team is trained to be ready to find and disarm a
nuclear device on short notice.

The disks, or drives, are designed for use in a laptop computer and are part
of an emergency response "kit" available to team members .

All 26 individuals who had unescorted access to the vault have been given
polygraph tests, according to Richardson.

Browne, the lab's director, has testified that security rules for the
tracking of items classified as secret were eased government-wide in 1992 to
reduce the cost of handling the large amount of documents carrying this
designation.

In early 1993 it was extended by then-President Bush to government
contractors such as the University of California, which runs the Los Alamos
lab. The policy was continued by the Clinton administration.

The President's Foreign Intelligence Advisory Board a year ago cited
inadequate tracking of secret nuclear materials in a stinging rebuke of
security at the Energy Department and its weapons labs.

While the current Los Alamos security break likely did not involve espionage,
"in some ways it's worse," former Sen. Warren Rudman, chairman of the
advisory board, said in an interview. "Espionage is very hard to guard
against. You win some and lose some. Here you've got a situation where there
is just sloppy accountability and record keeping."

The Associated Press contributed to this report.
RELATED STORIES
Timeline on missing Los Alamos hard drives in question(6-20-00)

Bush on Los Alamos: 'I will bring this sorry chapter to a close' (6-18-00)

Los Alamos lab director: Hard drives may have reappeared to cover
crime(6-17-00)

Missing nuclear secrets found behind Los Alamos copy machine (6-16-00)

Senate hearing examines loss of nuclear secrets at Los Alamos lab (6-14-00)

Secret nuclear information missing from Los Alamos lab (06-12-00)

Conflicting opinions on Los Alamos fire heard on Capitol Hill(06-07-00)

EPA: Data indicates no fire-unleashed radiation at Los Alamos

Fire moves onto Los Alamos nuclear lab property; 14,000 area residents
evacuated

FBI told Taiwan-born physicist he failed polygraph exam that he passed




RELATED SITES
Los Alamos National Laboratory

Department of Energy

House Committee on Commerce: 106th Congress

University of California, Berkeley

Federal Bureau of Investigation

Atomic Energy Act and Related Legislation

Scientific Freedom and National Security





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