MEMORANDUM FOR; Executive Director DCI Chief of Staff
SI
FROM:
of Congressional Affairs
Legislation
ueputy uirecrof lor
Office of Congressional Affa
on Chairman Leach Inquiri
1. Attachedemo on last week's briefing of Chairman Jim Leach, House Banking Committee, by CIA and NSA IG and Congressional Affairs officers. As Chairman Leach's letters to the DCI reflect, the Cornmittee is looking at numerous allegations of illegal activities at and around Mena. Arkansas. Chairman Leach was very cordial at the briefing and indicated that he" knew most of the allegations were outrageous, but that he wanted to say that the Committee has looked into these allegations and found them
to be baseless. (The worst of these allegations, creditedagazine called Media Bypass. is- that
IA source in . bnruia ny^ua, he CIA discovered that Vince Fosterpy for the Israelis, andray supercomputer at CIA Headquarters to surreptitiouslyillion from Foster's secret Swiss account. The article goes on to speculate that Foster committed suicide because he discovered his account had been drained.) He stated that his major concern is the impact these types of allegations have on public confidence in the international and domestic financial systems.
Ail Portiions Classif-Led.
2. Chairman Leach readist of questions that his assistant staff director, James McCormick, provided to us after the briefing (attached). The briefers indicated that we could not answer all of these questions conclusively, and chairman Leach asked for somew-jp ^Miches.
APPROVED FOR RElEASf DATE:?
qFPSCiT
on Chairman Leach Inquiries
Traces that we could complete before the briefing
found no record of contact with Systematica of
i nc.
Cnairman Leach indicated great interest incapabilities i
Ito discuss Leach's questions on
current capabilities, fli propose to discuss chairman -each's inquiry with HPSCI staff prior to meeting again with cnairman Leach. ave spoken twice with James McCormick, Assistant Staff Director for Chairman Leach, about our continuing efforts to answer the Chairman's questions and told him we will have more information shortly. He expressed appreciation for the briefing and follow up, and indicated the Chairman will soon forward Mccormick's MFR of the briefingequest for concurrence and any additional information.
Attachments
With the Congress
Briefmc for Representative LeachA^ Qn Allegations nf thet(k
Onuly. Chairman James Leach, Committee on Banking and Financial Services, and staffer Jamie McComuckriefing, at Leach's written request to then allegations of in Arkansas in the. Leach based his request for the briefing on
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andffice of
.cpum umi nave appeared in the press that refer to secret foreign bank accounts held by
prominent people in Mcna, Arkansas, Arkansas-centered network of banks Inspector General, and
ongressional Allans, along with Frank Newton,
nspector General, responded to' Leach's questions regarding each Agency'swith any of the alleged allegations contained in hisall of the questions posed in the incoming letter, but did, however,
sh background on how NSA conducts it normal daily activities
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idhorough search had been conducted by CIA. andound to be responsive, to the exact allegations contained in the letter. Jiowever, did say that the Agency was aware of Barry Seal, but had no
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relationship with him nor any records regarding his activities in Mena. As for PROMIS. that issue had been looked at in-depth by both SSCI and the House Judiciary Cornmittee1e conclusion then and still is that the Agency never purchased any INSLAW/PROMIS
software. Chairman Leach was informed that we had not found any records related to
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Leach, after listening to the responses to his earlier questions, proceeded lo ask approximatelyther questions regarding the issue, basically repeating many of the issues already addressed. Leach said he had talkedot of people regarding this issue, but he emphasized that he was aware that most of the allegations were false. Leach also said that he has concluded that some allegations may be credible, some totally unbelievable, but as information goes out to the American public in non-traditional ways, it becomes more believable. He has an obligation to look into the matter on behalf of the Committee, and asked us to inform the DC! and DtRNSA that he may hold hearing on these allegations in the fall. (U)
secret
Original document.
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