CHEMICAL WEAPONS CONVENTION
SENATE FOREIGN RELATIONS COMMITTEE APRIL 1997


                                                        S. Hrg. 105-183
                       CHEMICAL WEAPONS CONVENTION
=======================================================================
                                HEARINGS
                               BEFORE THE
                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE
                       ONE HUNDRED FIFTH CONGRESS
                             FIRST SESSION
                               __________



                        Thursday, April 17, 1997

Goss, Hon. Porter J., U.S. Representative in Congress From 
  Florida........................................................   219
Lehman, Hon. Ronald F., former Director, Arms Control and 
  Disarmament Agency.............................................   236
Odom, General William, U.S. Army (retired), former Director, 
  National Security Agency.......................................   227
O'Malley, Edward J., former Assistant Director 
  (Counterintelligence), Federal Bureau of Investigation.........   231


CHEMICAL WEAPONS CONVENTION ---------- THURSDAY, APRIL 17, 1997 U.S. Senate, Committee on Foreign Relations, Washington, DC. The committee met, pursuant to notice, at 10:07 a.m., in room SD-419, Dirksen Senate Office Building, Hon. Chuck Hagel, presiding. Present: Senators Hagel, Biden and Kerry. Senator Hagel. The committee will come to order. Congressman Goss, thank you, and welcome. You probably were expecting Chairman Helms. I am sorry to disappoint you and the other members of the second panel. Chairman Helms had a couple of responsibilities to attend to this morning and has asked me to fill in, and I am privileged to do so. As a 4-month United States Senator, Congressman, we make progress quickly over here, as you can see. So, if you work hard and do the right thing, you are Chairman of the Foreign Relations Committee after 4 months. That is the way it works. So we are very, very pleased to have you, as well as our distinguished panel who follow you, Congressman. And I will just briefly acknowledge our panel, and then I know you may have a vote coming up soon, so we would get right to business. The opportunity to have you over here, Congressman, is significant, because we all know you chair the House Permanent Select Committee on Intelligence. Your observations, insights and contributions will be important to this body, in helping us make a very difficult decision. Then, after you are completed with your testimony--I understand you will have to leave immediately after that--we will have a panel following you, consisting of General Bill Odom, former Director of the National Security Agency; Mr. Ed O'Malley, former Assistant Director of the Federal Bureau of Investigation and head of the FBI's Foreign Counterintelligence Operations; and the Hon. Ronald Lehman, former Director of the Arms Control and Disarmament Agency. So we are very privileged to have all of you. And, again, Mr. Chairman, welcome, and we look forward to your testimony. STATEMENT OF HON. PORTER J. GOSS, U.S. REPRESENTATIVE FROM FLORIDA Mr. Goss. Thank you very much, Mr. Chairman. I congratulate you on your meteoric rise and wish you continuing success in your endeavors, and I hope you will give my compliments to the Chairman when he is back. I also compliment you on the quality of your second panel. It is obviously made up of folks who know a good deal about this subject as well. And I greatly appreciate the opportunity to be here this morning. Mr. Chairman and members of the committee, you have clearly an awesome responsibility in deciding whether to ratify the Chemical Weapons Convention. As a Member of the House, who does not have a vote on this matter at this threshold, I am very especially honored that you have asked for my views as you pursue your advice and consent obligation. My testimony today is generally based on my knowledge and experience, including of course committee assignments on the House International Relations and the Intelligence Committees. But I also come as a Member of Congress, charged with representing views of the good people of Southwest Florida, views I consider a very rich slice of America. We all understand that the stakes are extremely high in what is about here today. No margin for error. Chemical weapons are so dangerous, so frightening and so difficult to control that is only natural and proper that the global community seeks to contain and eradicate them. The question is how to do it effectively. I know that those of us charged with our Nation's security have given this matter very much thought and carefully reviewed the commentary of many distinguished former leaders, public servants who have come down on opposite sides of this issue. I remain deeply troubled about the CWC's ability to meet the promise of its title and of its proponents. Given my review and my concerns, Mr. Chairman, in general, I conclude that I cannot support this treaty. Primarily and specifically, effective and balanced verification is too doubtful. My comments today focus on the critical issue of verification, and then seek to broaden the debate somewhat with a discussion of how the control of chemical agents and weapons fits into the overall strategy we all seek to ensure protection for the American people, for American interests, and for American allies. Finally, I want to briefly discuss a very real and practical aspect of CWC that has great significance to all of us as we embark on our annual budget process that will not be news to anybody here--the cost of implementation. Going to verification, first, Mr. Chairman, let me discuss this. At the outset, I want to state that I am not an individual who believes that arms control is a worthless endeavor. Mr. Lehman, I am sure, will agree with that. We have talked about this subject many times. On the contrary, I believe that our arms control efforts during the cold war were a critical component of a strategy that resulted in the end of the cold war and, subsequently, the collapse of the Soviet Union. Arms control truly has its place in our foreign policy and national security objectives. The process of arms control and the treaties that result can build a level of trust between signatories, and it can provide a measure of insight and information that is useful to the Nation. Obviously, if this were the only yardstick needed to measure the worthiness of the treaty, then CWC would be an undeniably valuable and worthwhile endeavor. Certainly, through the provisions found in CWC, some information would be available, and cooperation among most signatories could likely benefit our Nation to a degree. In fact, the acting Director of Central Intelligence, Mr. George Tenet, rightly stated to the Senate Intelligence Committee that there are some tools in the CWC--namely, inspections and data exchange--that, as an intelligence professional, he would find beneficial. And I certainly concur with that. For the intelligence community, it is clearly true that more information and insight is beneficial to analysis. However, the decision to ratify a treaty is not based on whether the intelligence community can get more data, but, in part, on whether we can monitor the provisions of the treaty and whether we, as a government, can verify that these provisions have been met or are being broken. And here, Mr. Tenet confirms what his predecessors have already stated and what I, too, believe. Monitoring compliance with CWC provisions will be very difficult. As you have heard, former DCI Woolsey, who negotiated the CFE treaty, an understands the complexity and importance of being able to monitor the provisions of a multinational treaty, stated that, quote, the chemical weapons problem is so difficult from an intelligence perspective that I cannot state that we have high confidence in our ability to detect noncompliance, especially on a small scale, unquote. Mr. Tenet, more recently, confirmed that assessment when he told the Senate Intelligence Committee--again, I will quote--I will say that our ability to monitor the CWC provisions probably is still not very good, unquote. Mr. Chairman, I must say that given the statements of those who have been in the position of managing intelligence resources and understanding their capabilities, combined with my own experience as an intelligence professional--a long time ago, I would add--and as a member and now chairman of the House Intelligence Committee, I believe that our ability to monitor the CWC is very questionable. I believe that is certainly true if you consider the more traditional and accepted definition of, quote, effectively verifiable, unquote. That is, the effectively verifiable means having a high level of assurance in the intelligence community's ability to reliably detect a militarily significant violation in a timely fashion. I do not believe we have those assurances. But even if you consider the much more watered down definition that has been promoted by the current administration, our capabilities are called into question--and I am not sure we can fulfill even that mandate. Former DCI John Deutch, when he was the Deputy Secretary of Defense, stated to the Senate Armed Services Committee that a CWC verification regime, quote, should prove reasonably effective, unquote, over time. As this committee has heard several times, the language of the classified National Intelligence Estimate from August 1993 looms very large. And again, I will quote from it. The capability of the intelligence community to monitor compliance with the Chemical Weapons Convention is severely limited and likely to remain so for the rest of the decade. The key provision of the monitoring regime, challenge inspections at undeclared sites, can be thwarted by a na- tion determined to preserve a small, secret program, using the delays and managed access rules allowed by the convention, unquote. I think that Chairman Helms had some interesting comments on industrial espionage as well, which he put in the record back--I think it was--on the 19th of March, which fall generally into this area. Moving from verification to a broader perspective, Mr. Chairman, I think that in viewing the CWC, one must put into perspective what we need do regarding the spread and potential use of chemical weapons in terms of our own national security. And I am not discounting our allies or other interests, but national security comes first. Put simply, what is the threat and what do we do about it? I would argue that the threat has continued to evolve over the past 4 years, since CWC was signed. Among obvious evidence of the types of new challenges we face was the incident in 1995, when the Aum Shinrikyo cult clandestinely produced sarin gas and deployed it into a Japanese subway. Although some may argue that this was simply an act of religious fervor, I fear that this is precisely the type of MO that terrorist groups may employ in the future. The transnational issues of proliferation--and here I refer specifically to the production and proliferation of chemical weapons and terrorism, whether state-sponsored or not--directly affect our Nation's security, perhaps almost as dramatically as the threat introduced by the incorporation of nuclear weapons into the inventories of the Soviet Union that we all remember. But the thought of small-scale production and employment of chemical weapons by a terrorist organization is one that should frighten anyone knowledgeable of the ease with which such weapons of terror can in fact be made. This type of threat must get special focus from our intelligence community--focus that could be drawn away by the need to monitor the CWC. It would be sad, indeed, if while creating a false sense of security by attempting to monitor this treaty, we found that we had diminished capacity to attack these transnational threats specifically. Then, Mr. Chairman, there is the larger issue of state- sponsored chemical weapons programs. Some would argue that an advantage of CWC is the overall pressure that it would place on states that are not part of the agreement to do the right thing. Although this may have been true during the cold war at some time, I am not as confident that it is true today, or will be tomorrow, for those countries that concern us most. After all, we call these countries ``rogue'' for very good reasons-- they do not conform and do not care about international norms, nor accepted behavior. Let me use the first START treaty to illustrate my point on what could be the likely effects of CWC on some of these nations. START is a treaty that has proven to be very effective and extremely valuable to our national security. Because of the treaty provisions that can be monitored by the intelligence community and verified by our government, we have reduced the threat that once had many of us learning how to take shelter under our desks at school. Thank heavens those days are gone. One of the noted values of START was the example it set for others, by saying that nuclear weapons were bad and that even the superpowers understood that we needed to walk back from that brink. However, it is clear that the START treaty did not set an example that was so dramatic that it prevented other rogue countries from pursuing their own nuclear weapons programs, as we all know. In some cases, these are the same states as those we are now worried about regarding chemical weapons programs and whether they might adhere to CWC. Having witnessed the types of actions and activities of these countries during this decade, it is hard to believe that they will somehow now cave to the threat of international reason promoted in the CWC. The fact is that reasonable nations will abide by international norms. Efforts like the Australia Group regime can be effective with reasonable nations. They are good efforts. The same is probably true for the CWC. But our greatest concern, certainly from an intelligence perspective, is not states that we term ``reasonable.'' If everyone were reasonable, would we be here discussing this today? Another question is the wherewithal of our signatories to enforce treaty provisions substantially and to engage actively non-signatories in adopting CWC principles. I noted with interest the recent statement by James Schlesinger, former DCI, regarding the world's incredibly mild reaction to the use of chemical weapons by the Iraqis, in clear and unambiguous violation of the Geneva Convention. I have little doubt that CWC could well suffer the same fate, coming under the same geopolitical yoke that often tempers the need for forceful, direct international actions. And at this point, I am going to insert some recent history. I must say that I have reservations about our own government's seriousness in this regard. Just this morning I learned that this administration made yet another attempt to sidestep direct action regarding chemical weapons proliferation. In this case, I understand that the State Department has attempted to modify its statements to the Senate, taking a more relaxed approach to the transfers of dual-use chemicals to Iran. This was recently reported in the Washington Times, and I am relieved to see that there is bipartisan outrage to this. This is not the first time that this administration has attempted to downplay China's activities in order to protect China from necessary, lawful sanctions. Many members of the House Intelligence Committee, on both sides of the aisle--and I stress that--are increasingly questioning this administration's response--or, more appropriately, their lack of response--to blatant proliferation of ballistic missiles and chemical agents or weapons, as has been reported in the press. I think Senator Stevens had it right when he indicated that this administration is so narrowly interpreting our laws that we will be unable to do anything about the proliferation problem. And that concerns me. I am very concerned that in continued attempts to protect policy, the administration appears willing to ignore the spirit and possibly the letter of the law. With this in mind, I wonder what hope we have of implementing the CWC accords in a way that will really be effective. Mr. Chairman, regarding the task ahead with those countries that we know are the bad actors, I point to the hurdles that we have encountered related to the United Nations inspections in Iraq. In what many would term a more robust inspection regime than CWC, proof of a chemical weapons program was concealed from U.N. inspectors for a great deal of time, and the full extent of such a program is likely still unknown. This is, in part, a factor of the ease with which chemical weapons can be concealed. I am afraid, however, that some of this probably has to do with the fact that today much more is known about our national technical means and other techniques of information collection and analysis than at any other time in our history. Some of this has to do with the fact that the technological explosion that we have witnessed over this decade has made people and countries generally more knowledgeable. We have lost some of our edge. Denial and deception is an unresolved challenge that leaves unacceptable gaps in verifiability. Unfortunately, another aspect is that we have made our own job harder. Mr. Chairman, it saddens me to say that I have just received a highly classified document in my office that relates to the damage to the effectiveness of some of our sensitive sources and methods. It appears this damage may have been the result of a very cavalier--or at least misguided--attitude toward declassification of information within the Department of Defense and the intelligence community, apparently in order to pacify political pressures from senior leaders in the government. And that is not a good reason. Obviously, I cannot go into any detail here on this issue, but I assure you that my colleagues and I on the Intelligence Committee, and I am sure our counterparts on the Senate side, will be examining this problem in detail over the next few weeks and months. Suffice it to say, however, that if interpreted correctly, the bad actors could well have a leg up on their ability to conceal activity and our ability to detect that they did not have previously. The final area I would like to briefly address for you to consider, Mr. Chairman, is that of the implementation costs associated with monitoring CWC provisions. I know that you have received reports on the overall costs associated with implementation, and that the United States may pay up to 25 percent of those overall costs. I would like to highlight the possible effects on the intelligence community. Often, because monitoring of our agreements and treaties with other nations is a matter of great importance to us, obviously, the priority placed on such activity is high in terms of our requirements, and the costs and the allocation of our resources are commensurate. I think that this is generally the right approach. Sometimes, however, this can lead to intelligence programs and a collection and analytical emphasis that can place greater priority on monitoring specific technical aspects of a treaty than on filling in the intelligence gaps. This is not a complaint of the intelligence community; it is merely an observation. My concern about this issue stems from the fact that dollars for intelligence and defense are at risk in the current budget environment--and we all know that. Yet, even though the intelligence community is significantly smaller, the demands for intelligence have significantly increased. Consequently, budget decisions within the community and within the intelligence committees of Congress become more and more problematic. And that is probably an understatement. At the end of the day, I must wonder whether intelligence dollars will be better spent on trying to effectively monitor CWC provisions that may in fact be unverifiable or focusing on comprehensive efforts against transnational threats. I use that term to refer to the proliferation of weapons of mass destruction, including chemical weapons, terrorism, narcotics trafficking, and of course international organized crime. As the Intelligence Committee reviews this year's budget submission, the potential tradeoffs between monitoring the CWC and focusing on other measures against the transnational threats could be a risky proposition. Mr. Chairman, I have no doubt that the CWC can be important. And I know that the motives of those supporting it are certainly very well intentioned, and I take nothing away from that effort. But the threat of the so-called transnational issues is so great that I must wonder to what degree the CWC helps us meet those challenges ahead. We need your support to make sure that we have a robust, flexible intelligence community in the future that can take on all of the challenges that we have. Unfortunately, when I look at the tradeoffs, the CWC comes up somewhat short of that mark. I thank you, Mr. Chairman, for this opportunity to insert my views. Senator Hagel. Chairman Goss, thank you. I have been joined here by my distinguished colleague from Delaware, Senator Biden, who is the ranking minority member of the Foreign Relations Committee. Welcome. Senator Biden. Mr. Chairman, it is a pleasure to have you here. I served on the Intelligence Committee for 10 years, but you have served in the intelligence community. You are one of the only folks here that has that hands-on experience. I must say, I apologize for not being here for your whole testimony; the Judiciary Committee is meeting, as well. I know you know the problem. But I will read your whole statement and take what you have to say seriously. The one thing you have said that I do agree with, and I am not sure how much more relative to CWC, is the need for us to have a robust intelligence capability unrelated to CWC. I was one of those guys, back when we had this--when we started the committee you now chair, that came out of the--that is how old--that is how long I have been here--it came out of the Church committee. And I was one of the so-called charter members. And I remember how upset everyone was in my party and my part of the party, because I kept proposing spending more money on the agency. And I would just say--and I realize it is slightly extraneous--but it seems to me, at a time when the wall is down, when other armies are weaker, when we have an overwhelming predominance of military capability, when we are cutting our military, this is the time to expand our capacity and not diminish our capacity relative to two things. One, the intelligence community and the other, the Foreign Service. This is a time to move out, not pull in. And so I agree with your overall admonition to be careful about what we are not doing for the community. I think we have a little disagreement on--I know we have a little disagreement on the efficacy of the CWC, but I will not engage you in that now. I am told you are off. I know how busy you are. I appreciate you, as they say, making that long walk to the other body. It is a long way over here, I know that. Mr. Goss. Thank you, Senator. I want to congratulate you for your vision in setting up the oversight committee. It has proved to be a totally appropriate and worthwhile enterprise. Senator Biden. I cannot take credit for setting it up. That was Senator Church. I just got put on it. I was just one of the first ones put on the committee. Mr. Goss. Well, if you were there, your fingerprints are on it, and you will have to accept the praise. Senator Biden. I am afraid they are. Mr. Goss. I also want to commend very much the comments you made last evening. They were very informative to me, and I think will be very informative in this process. And I was extremely impressed with your leadership on that point. Senator Biden. Well, you are very gracious. Thank you very much, Mr. Chairman. Mr. Goss. Thank you, sir. Thank you, Mr. Chairman. Senator Hagel. Senator, thank you. Mr. Chairman, thank you very much. If we could now have the second panel come to the witness table. Thank you. [Pause.] Senator Hagel. Gentlemen, thank you. I have introduced all three of you, and unless my colleague, Senator Biden has any opening statements, why do not we get right to it. And we will just go, at least from Senator Biden and my perspective, we will go left to right, and we will start with you, Mr. Lehman. Senator Biden. Does it matter if we let the General go first. Senator Hagel. No. That is fine with me. If you would prefer to have General Odom go first. Mr. Lehman. I never made general, so I think it is a protocol question. Senator Hagel. Well, I am a former sergeant, so I always put the generals at the back. Senator Biden. General, were you ever a sergeant? General Odom. No, I was not, unfortunately. Senator Biden. Well, then, he outranks you in this man's army. Senator Hagel. I am glad we got that straight. General, let me just reintroduce you, so that everyone knows, here in the hearing room, who you are and the expertise that you bring. You are the former Director of the National Security Agency. You spent a lifetime in the military. You come to this panel this morning with considerable experience and expertise. So, we are grateful. Thank you. STATEMENT OF WILLIAM ODOM, GENERAL, U.S. ARMY (RETIRED), FORMER DIRECTOR, NATIONAL SECURITY AGENCY General Odom. Well, thank you very much, Mr. Chairman and Senator Biden, minority ranking member. It is a pleasure and an honor to testify before you today. You have asked me to express judgments on the verifiability and the verification regime of the Chemical Weapons Convention. Now, initially, I considered the Convention rather benign, a treaty that would probably not prevent any determined state from violating it secretly, but probably having some marginal deterrent effect and, therefore, favorably. In general, I think the public--certainly, the media and a lot of opinion-makers and Washington political leaders--tend to favor arms control treaties, not because these treaties necessarily control arms, but because the sentiments and the intentions are noble. And to oppose them in this climate is to appear to be against virtue and for sin. Unfortunately, I think the record of arms control agreements is not objectively tracked and audited. And if it were, and widely published, I think the image of virtue would become seriously tarnished in several cases. But such a record is not kept to moderate these illusions and, therefore, whenever the potential damage for an arms control treaty is not very great and it may have some marginal advantage or gains, prudence allows us to support them responsibly, lining up with public virtue against sin. Now, upon a little examination of the verification regime, I began to realize it was not as benign as I had assumed. The length of the treaty itself immediately raised my suspicion. Now, one need go no further than the definitions of the terms at the beginning of the text to see the possibilities for dangerous ambiguities. This is not to suggest that the definitions have not been set forth with great care and thought. It is merely to underscore that some aspects of the definition task inherently must include ambiguities. For example, toxic chemicals and precursors, as clear categories, begin to be vitiated when purposes not prohibited by this convention are enumerated, especially where they concern international trade in chemicals. For another example, production capacity, is not easy to define in all cases with great certainty. The surge capacity of production facilities is often deceptive. Now, moving to the guidelines for schedules of chemicals, one has to wonder if in the context of rapid technological change in chemistry, whether or not these schedules can be kept updated in a practical way. For example, in the early 1980's, when I was Chief of Army Intelligence, we were concerned with the possible Soviet production of mycotoxins, substances that rest ambiguously on the boundary between chemical and organic substances. A research chemist and a molecular biologist could debate that, and they could probably provide you numerous other such ambiguous examples that we will have to deal with if this treaty goes into effect. The drafters of the text have probably done about as well as is possible in these circumstances. That is the point. The circumstances are not very amenable to arms control treaties. As a result, the length and the complexity of the treaty is such that very few people have the depth of expertise-- scientific, technical, legal, military, and intelligence--to say with even low confidence what the likely consequences of the treaty would be if implemented. I am surprised, therefore, that senior officials in the administration assert their support for it in such an unqualified manner. And I seriously doubt that any but staff specialists have read it carefully. And if they have, I doubt that they fully understood it. I am not surprised, however, to learn that the acting Director of Central Intelligence has reconfirmed the community's position that the treaty cannot be verified today, nor does he see prospects that it can be in the future. Now, looking at the verification regime as a former official of the intelligence community, I am disturbed by it, not just because it is impossible to verify with a high degree of confidence, but because it also complicates our security problems. Take, for example, the U.N.-like organization set up to make inspections. All of the appointed members may have no intelligence links whatsoever initially. As they find that they can tramp around in all kinds of U.S. production facilities, however, foreign intelligence services are likely to offer to supplement their wages for a little technology collection activity on the side. And they will probably provide truly sophisticated covert technical means to facilitate these efforts. Over time, therefore, it is only prudent to assume that a few members of this group will not be entirely trustworthy. If the KGB could penetrate the CIA, it and other intelligence services are likely to be able to penetrate this U.N.-like CWC inspection agency. Now, I understand that other witnesses have already raised questions about Article X and Article XI, which give all signatories the right to participate in the fullest exchange of information concerning the means of protection against chemical weapons. Such information inevitably includes knowledge of offensive means. Because, without it, one cannot know how to defend against them. It seems, from the treaty language, that each signatory is left to judge what information is to be included in sharing. And that implies as many interpretations as their are signatories. If all such information is available, then every signatory's interpretation governs its further distribution. Now, the incentive to exploit this ambiguity will only be great where the most innovative and effective offensive chemical means are concerned. That is, the very ones one would hope the treaty would be most effective in restricting. Pondering the implications, I am forced to conclude that the treaty could become the mechanism for proliferating the most dangerous offensive CW means, while becoming reasonable effective against the far less offensive means. This highly perverse and probable consequence of the treaty gives me pause, to say the least. Another aspect of the treaty puzzles me deeply. This thick document is entitled ``Instructions to Industry: Chemical Weapons Convention Data Reporting Requirements,'' which was drafted by the Commerce Department. It defines a very complex, tedious reporting system. Unless I am mistaken, one of the major concerns of the Congress in the last few years has been to reduce costly and burdensome regulations on U.S. business. Now, this document, required for the verification regime, looks like a costly and troublesome stack of regulations. My discovery of it made me highly suspicious of the convention itself. Do all of the affected U.S. firms know that they are about to face these instructions? Do they really know what the data reporting will cost? Do they know the costs of an intrusive inspection, even an occasional one, not just in direct monetary costs, which they must bear, but also the inherent costs of shutting down production during an inspection? Now, when I ask congressional staffers why the business community was not up in arms about this aspect of the treaty, I learned that several large chemical companies actually support this and agree to accept the costs. I also learned that not all businesses to be affected are aware that they will have to bear these costs. And, recently, it seems that some such firms, those in the aerospace industry, for example, have awakened to the implications and do not like them. And when I asked why the large chemical firms so happily accept the idea of paying hundreds of thousands of dollars to carry the regulatory burden of the convention I got no good answers. The answers were no more satisfying to my questions about whether all the firms which will be affected actually know that they will be, and have considered the cost and the inconveniences. Now, today, I pose another kind of question. The red tape morass, this kind of red tape morass, required by the verification regime--and even if the U.S. is willing to accept its costs and impose it on U.S. industry--what are the prospects that other countries will take equally comprehensive steps to monitor their own relevant industrial firms? As one who has devoted more than a little time to studying the nature of foreign domestic governments and political systems, I doubt that more than a few dozen have the administrative capacity to do so. And when the matter of costs is added, their incentives for making such a system effective will be negative, not positive. Now, I am inclined to believe, therefore, that if the United States ratifies the convention, only it and a few other states--none of which really needs the treaty to restrain them from developing and using chemical weapons--will be tying themselves up in a tangle of red tape while the rest of the world largely ignores these requirements, even if they promise to abide by them. And those states posing the biggest problems for verification will not cooperate in any case. Now, if one thinks through the implications of these regulations, therefore, one is encouraged to conclude that a few countries who do not need to be tied down by the convention will be engaged in the costly activity of checking one another while most states in the world go about their business ignoring the whole affair. Where states sign and ratify the convention and then are found by inspectors not to have regulations, what do we do then? What do we say when they complain that they cannot afford them? Do we then finance them from our own budget, as we are doing in Russia in connection with other arms control agreements? Even if we agreed to do that, whatever the cost, it would not work; because lack of administrative capacity, not shortage of funds, is the critical problem in most of these states. These are some of my reactions to learning more about the convention. As I considered the additional concerns expressed by several former Secretaries of Defense, I found them also very compelling. For those who were not persuaded by their arguments, however, and who approach the convention looking for reasons to support it, willing to accept only marginal advantages as sufficient for justifying the ratification, I strongly advise against following that inclination. The best intentions can sometimes produce highly undesirable outcomes. I see more than sufficient evidence to convince me that the CWC is clearly such a case. It is not enough to resort to detailed technical arguments to score debating points against some of the objections I have raised. The treaty is so complex that it is possible to isolate a particular concern and to find arguments that seem to allay the fear. Within an hour of further examination, however, one can find yet another concern and another, almost endlessly. This assessment does not mean the drafters and negotiators did a sloppy job. On the contrary, it means they were asked to apply an arms control solution to a problem that essentially defies its very nature. Common sense tells us this unhappy truth. It is also implicit, I think, in acting Director George Tenet's rather candid letter to Senator Kyl about the intelligence community's own view of its present and future capacity to verify the treaty. Now, I think to push ahead in such circumstances strikes me as imprudent, not a modest step toward controlling chemical weapons. Rather, it is an effort to use a hopelessly complex treaty to escape political and military responsibilities that we will eventually have to face. The several editorials in the Washington Post on the CWC show this tendency--a growing recognition that the complexities really are beyond the reach of treaty drafters, but not yet willing to accept the implications. The most recent one today comes remarkably close to admitting the treaty's perversity, its enormous potential for very bad outcomes, hidden in its complicated verification regime, and wrapped in deceptive appeals to our best instincts. Now, if we deceive ourselves for a number of years by the illusion that we have escaped these responsibilities, the price will be higher than had we faced up to them all along. Ratifying the convention, therefore, strikes me as unambiguously imprudent, not a close call, by no means a risk worth taking, certainly not a harmless step that puts us on the side of righteousness. Thank you. Senator Hagel. General Odom, thank you very much. Let me now introduce Mr. Edward J. O'Malley. Mr. O'Malley is the former Assistant Director for Counterintelligence, Federal Bureau of Investigation. Mr. O'Malley, thank you. STATEMENT OF EDWARD J. O'MALLEY, FORMER ASSISTANT DIRECTOR (COUNTERINTELLIGENCE), FEDERAL BUREAU OF INVESTIGATION Mr. O'Malley. Thank you, Mr. Chairman. Good morning, Senator Biden. Something you just said reminded me of an incident that happened many years ago. Judge Webster, then director of the FBI, and I were testifying on the FBI's foreign counterintelligence budget before one of the two intelligence committees--I do not recall which one--and he was asked the question whether he thought he was really asking for enough money for the Bureau's foreign counterintelligence program, that the committee was quite willing to give him more. I have never heard such a question before or since, but something you just said reminded me of that. Yes, I did head the FBI's foreign counterintelligence program. After I retired, I have been employed for about 10 years in private industry, including with IBM, where I worked out of the Office of General Counsel and was involved in countering on IBM's behalf those who would steal IBM's trade secrets, including, I might add, the Japanese and the French. Alvin Toffler, the futurist, has stated, the 21st Century will be marked by information wars and increased economic and financial espionage. The race for information of all kinds will be motivated not only by a desire to lead, but will be required to avoid obsolescence. The energy released in competition for market share has significantly replaced but has not eliminated the energy that once drove the cold war military strategies of the West and its adversaries. The shift from acquisition of global power by force to one of acquisition by competitive strategy marks what promises to be a remarkable revolution, remarkable not only in the sense of its relevance to national power, but also in a sense of the increasingly disparate nature of the competitors, which run the gamut from many of the traditional cold war adversaries to traditional friends and allies. In terms of a traditional classical espionage threat vis-a- vis hostile intelligence operations in the United States, intelligence services of the former Warsaw Pact, the People's Republic of China, Cuba, North Vietnam, and North Korea, were of major concern from a counterintelligence standpoint. The activities of the former Soviet Union and others are as aggressive as ever, and remain a major threat. What is new, however, is the increased importance given by them to the collection of American corporate proprietary information. Another change in terms of the foreign threat is that it now includes not only a nation's intelligence services, but also other governmental ministries and/or corporations. Chief among their strategies is the acquisition, licit or otherwise, of the battlefield's strategic targets, a corporation's sensitive business information and intellectual property. I think it is clear to anybody that the lifeblood of any corporation rests on intellectual property, and I might say the same thing, in my opinion, applies to the lifeblood of a country. All of this has not gone unnoticed by our intelligence community and the Congress, both of which have been very much engaged in addressing espionage concerns of whatever variety such as was done in the 1970's. My testimony today will focus on what was done by both--that is, the Congress and the community--in the 1970's to address the threat as it existed then, and what has been done in the 1990's to meet an ever- increasing and complex intelligence threat. I will also comment on the concerns I have with the Chemical Weapons Convention as it relates to certain counterintelligence initiatives, and also to the extent that its ratification will result in mixed signals from the Congress to the counterintelligence community. I am not arguing that the ratification of the CWC should succeed or fall because of counterintelligence concerns. What I am suggesting is that those involved in the strategic decisionmaking process ought to consider these current concerns along with many others, such as recently expressed by General Odom. Historically, whatever other benefits may have resulted from the period of detente, there was no corresponding diminution of intelligence activities in the United States by the former Soviet Union or, for that matter, its Warsaw Pact allies. In fact, analysis by the American counterintelligence community in the 1970's documented a substantial increase in such activities undertaken with the hope that they would be overlook because of detente-generated goodwill. These hostile intelligence services and their counterparts in other areas of the world used every means at their disposal to enhance their intelligence collection in the United States, including the use of their diplomatic establishments, the United Nations Secretariat, commercial and trade delegations, students, ``illegals,'' third country operations, false flag operations, recruitment of third country nationals, and active major operations. No stone was left unturned in their efforts to obtain classified American political, scientific, and military information. Although all had sophisticated human intelligence recruitment techniques to recruit their intelligence targets, it must be stated that volunteers also did a substantial amount of harm. The common thread and the most important motivation of those who betrayed their country was money. This should not be forgotten in terms of today's threat, and I will comment a bit later on that point. Having done its homework in terms of the seriousness of the intelligence threat, the counterintelligence community made its case to Congress in the seventies in terms of resources needed to meet the threat. Congress responded and approved the resources, enabling the enhancement of the quality and quantity of people involved, the equipment, analysis, and training. The many counterintelligence successes of the 1980's were not accidental. They were the result of close cooperation between Congress and the counterintelligence community. Let me now switch to the nineties and the post cold war developments which are taking place. During the early 1990's, the United States became increasingly aware of the economic espionage threat to its interests on several occasions, the last occurring in February 1995. The White House published national security strategies which focused on economic security as crucial not only to U.S. interests but to U.S. national security. This was further delineated by testimony of Secretary of State Christopher before the U.S. Senate on November 4, 1993, when he stated that in the post cold war world our national security is inseparable from our economic security, emphasizing the ``new centrality'' of economic policy in our foreign policy. To be sure, the intelligence services of Russia, the People's Republic of China and others remain a very significant force to be contended with vis-a-vis classical espionage. For example, the Russian SVR, the successor to KGB, and the Russian military intelligence service, the GRU, have sustained their activities aimed at the collection of national defense information; but they have also begun to pay added attention to American economic, scientific, and technological information. President Boris Yeltsin made this perfectly clear in a policy statement dated February 7, 1996. It was seconded by Ifgani Primakov, the former head of KGB. I think we ought to listen to these gentlemen. It should be recognized that the economic espionage against the United States should not be considered only in the abstract, as something which should be only of concern at some ill-defined time in the future. Know this future is now, and there is more than ample evidence not only of the threat, but of the implementation of the threat by human and technical intelligence as well as significant resulting damages. Again, it became clear to the counterintelligence community in 1990 that our counterintelligence policy had to be changed not only to meet classical espionage threat but also to mirror more closely the total spectrum of today's economic intelligence threats to the U.S. and corporations. The allocation of a large percentage of its counterintelligence resources to the former Soviet camp and the People's Republic of China had left it somewhat blind as to whether intelligence activities were occurring in the United States. As in the seventies, it was realized that something had to be done. That something was a new counterintelligence policy approved by the Attorney General in 1992 known as the national security threat list, which provides a road map for the redirection of FBI counterintelligence resources. The national security threat list contains two elements, an issue threat list and a country threat list. The latter is classified. I would like to concentrate, if I may, on the issue threat list. Two of the issues significantly involve countering by the FBI of foreign intelligence activities aimed at illicitly collecting information regarding weapons of mass destruction, including chemical weapons. The second issue involves countering attempts by foreign services to collect proprietary information of U.S. corporations. Given the importance of these two issues to U.S. national interests, the FBI will provide counterintelligence coverage irrespective of the country involved. A bit more on chemical weapons later. In 1994, the FBI initiated an economic espionage counterintelligence program. In 1 year's time the number of cases doubled from 400 to 800. In 1995, the Attorney General revamped the national security threat list to give greater emphasis to countering foreign economic espionage. The Director of the FBI testified publicly before Congress in February 1996 regarding economic espionage, calling it ``devastatingly harmful'' in terms of billions of dollars of losses and hundreds of thousands of jobs lost. He focused on economic espionage by some foreign governments which steal U.S. technology and proprietary information to provide their own industrial sectors with a competitive advantage. Economic intelligence collection operations come in various guises and under different sponsors. There have been Government-sponsored operations such as France's Direction Generale de la Securite Exterior, the DGSE, the French counterpart of CIA, with which I have some familiarity, which not long ago prioritized a collection effort aimed primarily at U.S. aerospace and defense industries. Other operations have been sponsored and run by foreign competitor firms without the assistance of their government, and there are examples of operations which combine foreign governments and industry. In the late 1980's, IBM learned that IBM France was penetrated by the DGSE through the recruitment of French nationals within the company. The information acquired by DGSE was passed to French companies, including Companie de Machine Bull, the IBM of France, which was then owned by the French Government. There is current information that France has been developing in the last 2 years a substantial economic espionage capability involving its business community, the French commercial attaches, and other. Its principal target is purportedly the United States. Despite all the efforts by the FBI and other governmental agencies, despite all the public and in camera testimony before Congress, and despite all the recognition on the part of the White House, the Department of State and others regarding the relevance of economic security to national security, Director Freeh and others recognize that in the final analysis there was little chance in stopping foreign economic espionage because Federal statutes simply did not allow the government to counter or deter this activity in any way remotely commensurate with the damage it was inflicting on the U.S. economy. As in the 1970's, the Department of Justice and the FBI again made their case to Congress, this time that a new law was needed to facilitate the stopping of foreign economic espionage. Once again, the Congress responded and passed the Economic Espionage Act of 1996. The EEA was passed with two goals in mind. First, to thwart attempts by foreign entities to steal trade secrets of American corporations. The more severe penalties of the act reflect this overriding concern regarding a foreign threat. Second, to allow the Federal Government to investigate, which had not been done before, at least in the sophisticated sense, to investigate and prosecute those engaged in economic espionage. Importantly, section 1839 of the Economic Espionage Act precludes--precludes--any Federal prosecution for trade secret theft unless its owner ``has taken reasonable measures to keep such information secret.'' Let me now conclude by commenting on my counterintelligence concerns with the Chemical Weapons Convention as it relates to what I have said and what is going on now. While the national security threat list, supra, directs the FBI to focus its counterintelligence resources to prevent the illicit acquisition of chemical weapons information, the CWC would appear to facilitate the acquisition of such data through its challenge inspections. There is not an unrealistic possibility that these inspections could facilitate collection of the very kind of chemical weapons information that the FBI is charged to protect under the national security threat list. If I were a foreign intelligence officer and my country needed offensive or defensive information regarding chemical weapons, I would focus on a group of inspectors to be stationed at The Hague. As I indicated previously, there can be no Federal prosecutions under the Economic Espionage Act unless the owner of the trade secret has taken measures to keep it secret. This is standard trade secret law. The list of chemicals covered by the CWC is huge and open- ended, and will encompass companies beyond chemical companies such as pharmaceutical companies, computer companies, and others with no relationship to chemical weapons or the CWC except the manufacture of chemicals covered by the convention. One of the greatest concerns of companies that I have read about, and I have read a number of letters from major companies and major associations of companies, all of which--the common thread running through all of them is their concern that the CWC will open them up to economic espionage. I think their concerns are well-justified. One of the greatest concerns of the companies I have read about, as indicated, concerns the loss of trade secrets through inspections, including dual use technologies to foreign competitors. There seems to be mixed signals to the corporate world in that the Economic Espionage Act requires them to protect trade secrets, while the CWC requires them to hand over to inspectors what they may regard as trade secrets, and which they otherwise would have treated as such. This confusion in my opinion ought to be cleared up. I might add, there was one more issue on that national security threat list, and that was entitled, national critical technologies. Again, like proprietary information, the Bureau was charged with doing what it can from a counterintelligence perspective to protect against the illicit acquisition of these national critical technologies, which was decided by a panel at the White House. In other words, the panel said that these technologies are crucial to a superior military posture and also to a strong national economy. If you read these lists of national critical technologies, and it is unclassified, materials synthesis processing, electronic photonic materials, ceramics, composites, a flexible computer-integrated manufacturing, software, biotechnology, aeronautics, et cetera, et cetera, you can see that there is a nexus between some of the chemicals which are mentioned in CWC and those which are involved with these technologies. So again, you have somewhat of an inconsistency in terms of charging the FBI to protect these critical technologies on the one hand and CWC in effect possibly opening them up to compromise on the other hand. Again putting myself in the shoes of a foreign intelligence officer, I would not bother to go through all the complicated recruitment efforts to recruit someone within XYZ company. I would simply recruit an inspector who would be able to interview XYZ's employees, inspect documentation and records, have photographs taken, and take samples. I would achieve the same end, but would be doing so in a way sanctioned by the CWC. The acquisition of American trade secrets has become a high stakes business involving billions and billions of dollars, and I would be able to pay an agent handsomely to acquire such information. Thank you. Senator Hagel. Mr. O'Malley, thank you. We appreciate your testimony. Ronald F. Lehman, former Director, Arms Control and Disarmament Agency. Ron, welcome. STATEMENT OF HON. RONALD F. LEHMAN, FORMER DIRECTOR, ARMS CONTROL AND DISARMAMENT AGENCY Mr. Lehman. Thank you, Mr. Chairman. Let me begin with a bit of a personal note. I was in California 2 days ago when the staff called and asked if I would come and testify, and of course I said I would. I did so in part because of the friendships and the relationships I have had with this committee over the years, but there actually is another part of it that I think is a principled thing, and that is that this is a great deliberative body, and we need a marketplace of ideas, and we need to work together to get the facts out, and we need to do that throughout the negotiating process and beyond that into the implementing process; and so I will help as best I can. The second thing is, as I think most of the Members here who have known me know, I believe that the United States ought to be the real leader of the world, and I believe that our military power ought to be unequaled. I am a hawk, and the Constitution gives me one very powerful tool, especially in the arms control business, and that is that a third of the Senate plus one can block a treaty. You are my ally. I do not need all of you on my side. I need a third plus one on my side, and I have got a hell of a lot of leverage. Let me give you just one example. Back in the Wyoming Ministerial in 1989, we were trying to finish up the verification protocol on the Threshold Test Ban Treaty, and we had concluded pretty much most of the technical details that remained, and we had met all of the concerns of the intelligence community, all of the concerns of the JCS and the Defense Department writ large. Everybody was happy, except I was not happy because I had not met Senator Helms' standards, so the negotiator and I got together, and we developed an approach to strengthen that protocol just a little bit more, and that protocol in the treaty which--the treaty had been sitting around since 1974-- passed the Senate 98 to noth- ing. I think that working together with the Senate strengthens the United States. The marketplace for ideas gives us better ideas. I had hoped that it would also improve understanding. I am a little puzzled that we have a treaty that we concluded 4 years ago that is very similar to the treaty we tabled 10 years before that, and negotiated over 10 years, in which essentially all the issues that were out there today were present throughout that whole process, but that is why I am here. Now, I am a straight shooter. I think Senator Biden will tell you that many times I have told him I have disagreed with him. Senator Biden. If I could interrupt you, Mr. Secretary--if I could interrupt you for just a second, while you were sitting there I leaned over and I said to my new colleague, and I said, Lehman, he and I have been on opposite sides of the table. You find out one thing about him. He is a straight shooter. I used the exact words you just used. Senator Hagel. I think he was a little more graphic than that. Senator Biden. But I did use the words, straight shooter. They were modified. There were adjectives attached to it, but you are a straight shooter. Mr. Lehman. Let the record show I respect your views toward me, and your right to have them. The point I want to make is basically this. I am here, I represent myself. I am going to give you my views. These are my personal views. They are not the views of any organization I am associated with now or in the past or in the future, necessarily; but I am going to give you my best estimate of where we are, and let me try to give at least something of a summary, and then I am yours. You have asked me to comment on the Chemical Weapons Convention and on the verification issue. Although the issues are complex, my advice is straightforward. Ratification of this convention is essential to American leadership against the proliferation of weapons of mass destruction; but ratification alone is not enough. Strong followup involving all branches of government will be vital. This hearing should not signal the end of your deliberative process, but rather the beginning. You must hold the executive branch's feet to the fire, and you must hold your own feet to the fire as well, and you must use your powers of oversight and the purse to bring about the most effective use of the tools that will be made possible by this treaty. In the case of the Chemical Weapons Convention, its contribution to our security will be determined more by what we do in the future than what we have done in the past. The past, however, has given us some important lessons, and the CWC was designed to take advantage of that learning process. The CWC offers us important tools which give us more data, greater access, and more leverage. The chemical weapons threat is serious, and will grow worse without the CWC. Even with the CWC, we will never be able to let up on our defenses; but with the CWC we will have more tools, more allies, and more options. The United States will be in the lead. If we now walk away from the CWC, which was carefully crafted over many years to serve American security interests, we may try to lead, but few will follow. I support your giving consent to ratification, because it is time to take that lead and to get on with the job. The time has come to stop giving lip service to nonproliferation, and in this regard I share many of the views of my friend Bill Odom, and to get on with the hard work. I am more than aware that the CWC is not a perfect treaty. No treaty can be perfect, but the challenges facing a treaty trying to ban chemical weapons are among the most daunting. We knew that from the beginning. What is more surprising is that we made as much progress as we did. The treaty we negotiated is stronger overall than the treaty we first tabled, and our ability to implement it has been strengthened in many ways. That was made possible by a number of factors, some of which I would like to enumerate briefly today. First, we did not rush into this treaty. We engaged in a 10-year process of deep and careful study with the widest range of concerns reflected in the analysis and decisions. Second, we were able to build upon lessons learned from both the successes and the disappointments of earlier arms control experience. Third, the end of the cold war as we knew it improved some security considerations, such as reducing the possibility of a large land war in Western Europe. Fourth, the collapse of the eastern bloc brought greater access to what were once incredibly closed regimes, and reduced the necessity for such heavy reliance, often solely, on national technical means of verification. Indeed, political change has given us new sources of information which often multiply the value of our National Technical Means (NTM). Fifth, the threat of Iraqi weapons of mass destruction in the Gulf War generated greater support for a hard-nosed approach to nonproliferation here and abroad. Sixth, the conjunction of the collapse of the Soviet Union and the defeat of Saddam Hussein created, at least for awhile, much stronger international support for American leadership and the American view of how to proceed. It was in that period that we concluded the Chemical Weapons Convention. Seventh, we could build upon and learn from the experience of the U.N. special committee and the enhanced IAEA challenge inspections in Iraq. Eighth, although no technological silver bullet permits us to monitor all chemical weapons activity with confidence, some improvements, including new forensic techniques, continue to appear. And ninth, and I hope Senator Biden understands this, we really were prepared to walk away from this treaty if we didn't get what we wanted. Senator Biden. I never had a doubt about that, Mr. Lehman. Mr. Lehman. This negotiating from strength was very helpful in getting the provisions we wanted, including in the area of verification. The real problem initially was to know exactly what we wanted. Early on, it became clear that NTM alone could not do the job. At the same time, even as political pressure built upon all nations to accept the traditional U.S. approach of more intrusive onsite inspection, our studies indicated that inspections were not magic, either. Worse, existence of inspection regimes could raise false expectations of the effectiveness of constraints and, if improperly done, the inspections themselves could produce false positive or negative results while endangering proprietary and national security information. Many of us who raised these concerns throughout the negotiating process, or the specific concerns we raised, are often cited in opposition to the convention. What is important to understand, however, is how we address the problems, and why we can support the convention on its merits. Again, we begin with the understanding that monitoring most CWC activity is a major challenge. In the past, we relied upon a comprehensive deterrence strategy which included as one element the ability to respond in kind with chemical weapons. That element is no longer realistically available to us, not because of the treaty, but because the United States, both Congress and the executive branch, including the military, no longer desire to keep its offensive chemical weapons capability. Thus, unlike so many other arms control agreements such as INF, START, or CFE, we are not directly constraining a military capability we would otherwise retain. This is an important part of the verification consideration. Let me explain. Verification has always involved more than estimates of the likelihood that a specific, prohibited act could be monitored by NTM. The intelligence community likes to remind you that they do not make verification judgments. They make monitoring judgments. They take great professional pride in that point. It involves a calculation of risks and benefits. At the beginning of the administration of President Ronald Reagan a review was conducted of how we should approach arms control, including verification. A view had emerged among many in the arms control community that verification of a nuclear treaty would be sufficient if the overall military balance could not be altered by cheating. The problem was that some of these same people expressed the view that no amount of inequality or cheating could upset the nuclear balance. The implication of this, thus, was that no treaty could be insufficiently verifiable, except, said some, perhaps at or near zero. President Reagan, who recognized that absolute verification was not possible, wanted a different approach which would serve better the national security of the United States and his strategy for countering totalitarian regimes. The new, stricter approach to verification took into account a far wider range of considerations than just the state of the overall military balance. Military significance remained at the core of this approach, but more based upon standards of equality, stability, and specific benefits and risks. More attention was to be given to details, including insistence on detailed verification provisions actually within the treaties. Emphasis was placed also on the interaction of restraints, and the clarity of draftsmanship. An analysis looked at the incentives to cheat, the alternatives available to us and to the cheater, and the prices paid or the gains made, including those associated with greater access on both sides. It stressed that intelligence estimates should not be politicized, and that we should be honest about monitoring confidence of specific provisions of the treaty. It also took into account the important questions of deterrence of cheating by generating the fear of discovery, deterrence of any attack through strong military forces, the existence of defensive measures, and the enhancement of compliance enforcement when you find a violation. What does this mean for the CWC? Clearly, it meant that the CWC was going to take a long time to complete, and it did. Certainly it meant that we would have to develop an approach which was intrusive and aggressive to take into account the monitoring challenge. Above all, it required that we do more than strengthen the international norm. We had to have the tools and the mandate to put together the support to do whatever we needed to do, including the use of military force in coalition or unilaterally to deal with violations. To the soldier who is wounded by it, every bullet is militarily significant. The same is true of the use of gas against our forces, even if it does not deny us victory. A violation is a violation to be punished and corrected. The CWC was designed to get more of our allies and other nations to join with us and to support us. That is, to build upon and go beyond the experience with Iraq. With this background in mind, those who oppose U.S. ratification of the treaty need to address some important questions. Why should we make it easier for others to use chemical weapons against us? With the inherent difficulties in monitoring chemical weapons activities we need all the help we can get. We do not have the highest confidence that we will detect cheating, but the cheater must still worry that we might. Should we deny ourselves the strategic warning that comes from the detection of indications of chemical weapons activity, even if there is not complete proof? And then, why should we let it be legal for rogue states to accumulate CW which, if discovered, is then not considered the basis for tough action because it is legal? These are some of the many questions which must be considered. Mr. Chairman, in my previous statement to the committee, which I have again made available, I discussed the work we did in dealing with the balance between intrusive inspections to deter cheating and the measures necessary to protect sensitive information. Today, I would simply like to add that the tradeoffs between the two are not a zero-sum game. We discovered in our many studies and trial inspections that, although there will always be some tension between the two, we could find measures which would enhance one without too much cost to the other. Also, I would like to add that our experience with Iraq continues to point the way to better ways to implement inspections. It is a contest between skills and tools on the part of the inspectors, and in evasion techniques by the proliferators. What we have learned is that as we gain experience, and as we learn more and more about legitimate activities for comparisons, we have gotten better and better at ferreting out the discrepancies, the inconsistencies, and the outright lies of those concealing a program. As technology improves, we may get additional help. Having Americans involved in the experience was essential. With respect to the CWC, we need to continue to take the lead in strengthening enforcement. The time has come to give us the tools and let us get on with the job. [Mr. Lehman's 1994 statement appears in the appendix.] Senator Hagel. Mr. Lehman, thank you, and to all our panelists we are grateful for your time this morning, your insights, and your willingness to stay a little longer for questions. Since it is just my colleague, Senator Biden, and I, we have agreed that we will just enter into somewhat of a colloquy here back and forth, and we will handle it that way. I will begin. General Odom, would you go back into your testimony and elaborate more on some of the specifics of Articles X and XI that you referred to? We have heard an awful lot about that over the last month in testimony, and I know you would probably have more to say about it; but there is a legitimate concern about transfer of technology and what exactly does X and XI say and mean, and whose interpretation, and I would be interested in your clarification of those areas, since you brought it up in your testimony. Specifically, we have heard a lot about reverse engineering and that transfer. How deep does that transfer go, in your opinion? General Odom. Let me just say first, I do not claim to be the great expert in this, but I have read it and took it for what it seemed to mean, and I began to conclude fairly quickly that, as I said in my testimony, that if you are required to share all the information, information concerning means of protection against chemical weapons, part of the means of protection against chemical weapons requires knowledge of what they are. When I was Chief of Army Intelligence, one of the major concerns in collecting information for our defensive production, production of defensive equipment such as MOP suits, gas masks, et cetera, was to know what the agents were and to understand the chemistry of the agents; and, therefore, if you are going to develop effective defensive means, it requires the leading edge knowledge of offensive means or you cannot produce them. Therefore, it would seem to me that were I a signatory under this I could share knowledge of the leading edge technologies in offensive weapons with anybody, even to the degree I am obliged to do so. And then when that crossed my mind I said, well, who makes the judgment; and it appears in the treaty that it is up to the signatories, so any signatory can decide with whom he shares what information, as long as he can make the argument that it is in the spirit of information concerning the means of protection against chemical weapons. It would be hard to take issue with him. And as I said in my testimony, the kinds of information that you will be most concerned about from a defensive point of view are the most vicious and threatening offensive things. Therefore, the incentives would seem to be to cause the spread of knowledge about those most advanced and threatening offensive means and to pay less attention to the less threatening ones. From that, it seems to me, as very often is the case in public policy, the intended consequences turn out not to be those we anticipated; but we end up getting a very perverse consequence that was almost impossible to foresee. Senator Biden. Can I ask a clarification? Senator Hagel. Senator Biden. Senator Biden. General, assuming you are correct on that, if we are not a signatory to the treaty, the same thing happens. General Odom. Absolutely. Senator Biden. I mean, whether or not we are signatory of that treaty is not--and what you are talking about here is the motivation of the countries in question who are in the treaty and we have to assume, in order to reach the conclusion that you have reached, that the countries that have this advanced technology, most of whom are our allies, are going to want to spread this technology around that we do not want spread, right? General Odom. And I assume that, and I also assume that our chemical companies are going to want to do that; and I suspect, I do not know, that may be why they are for the ratification of this, so that I think if you are talking about other hidden land mines of unintended consequences, this brings us right to that one. Senator Biden. Well, General, it says the States Parties. It does not say XYZ company. We are attaching a condition that everyone is at a disadvantage in this regard. Senator Helms and I have been negotiating, our staffs for the last couple of months, and one of the conditions is going to be, if and when this treaty gets to the floor, will be that the United States will declare up front that it will only transfer--it will only--it reads, the paragraphs in question, as saying that it can choose what to transfer, and it will, if it transfers anything, only transfer that which has some medical--what is the exact term of art?--antidotes and medical treatments capability, so that no American company is going to be able to go and transfer that material. I understand your concern, but I think it is one that it seems as though the negotiators took into consideration when they were drafting the treaty, but I may be mistaken about that. I do not know. General Odom. Senator, let me respond to that. As I said in my testimony, I think you can take each one of these issues out and make very good arguments that seem to allay the fears, and as you have allayed the fear on a particular one out of context, you can easily--if I want to go down the list I can bring up others, and we get into sort of an infinite regress here. As I said, I came to this thing saying basically it is all right. I would even say today that I would not get upset if this treaty would go into effect with no verification regime. You know, I just do not see why we should have this, when we know--when you and I are agreeing that it is going to have a triv- ial or maybe even perverse effect; and I would be willing to stand up with those who are against chemical weapons. So, I have said earlier, I think this is a misconceptual approach. We have asked the negotiators to do a task that cannot be done. It is sort of like asking somebody to reach the wall by going half the remaining distance. By definition, you never get there. Therefore, I think we are applying an arms control solution where it simply is not conceptually appropriate. It makes us feel good. It is hard to be against it in spirit, but when I work my way into it I am inclined to say this really is not very compelling. Senator Biden. General, as usual your integrity and intellectual rigor are always apparent. It seems to me this is the division, the dividing line, between those who support the treaty and those who do not, and that is not so much whether any of these provisions are as dangerous or as bad as critics say. But it seems to me as I look down the dividing line it is people who say: Look, bottom line is you cannot have a treaty relating to chemical weapons or biological weapons, ergo I am against the treaty, notwithstanding the fact you can give me an argument on each of my criticisms. I think that is a legitimate, intellectually defensible position, one with which I disagree; and it comes down to where we are better off. But I think when you cut through it, when you and I cut through it all, in my view most of the criticisms, specific criticisms of the treaty, have specific answers that are specifically--I am not saying you agree with this--in my view-- but the bottom line that separates 95 percent of those who fall on for or against is this issue of, it starts with--and it is not your view or my view; it is my understanding--that we have never lost a war or won a treaty. I might add, by the way, you laid waste to that old saying when you did START; because if we did not win that treaty I do not know what in God's name anybody would consider not having won. Then it goes from there, I think, General, to people who say: Look, you just cannot deal with chemical weapons, period. And if you adopt that view--and I respect it; I disagree with it, but I respect it--then all these other things kind of become irrelevant, and you kind of fall from one side or the other of that spectrum, it seems to me. General Odom. Can I add one more point on the logic of this? And I do not mean to be just scoring debating points, but I am sure you are very familiar with the Luddite movement of the 1830's. Senator Biden. Yes, smash the machinery. General Odom. Right, stop technology, put the lid on it. One of the things that struck me--I have a colleague at Yale today who has just done a little paper, Martin Shubick, showing that the price of killing people is going down. He has done some calculations, and it happens to be in the BW and CW area that this calculation turns out to have great effect. This whole technology area is not standing still. It is in a state of rapid change. Senator Biden. See, that is why guys like me and guys like Lehman would argue you have got to get in it. That is the very argument why we have got to get in it. General Odom. Well, but to get in like Ned Ludd is not the way to get in. We need to get in in a way to recognize that it is dynamic and that we are probably not by statutory means or by international agreements going to be able to contain it. I am not saying we ought not to do something about it, and I have said I am prepared to sign a treaty, support a treaty that puts us on the right hand of God in this regard. But when you get into the details of whether this really delivers anything you promised, it is hard to be convinced. Senator Biden. I thank you, General. I am sorry. Senator Hagel. No, I think when we have got just a couple of us we can jump in and do this. Senator Biden. Mr. Lehman wanted to say something. Mr. Lehman. Mr. Chairman, if I could just make a point here. I agree with Bill Odom that we have got to watch the implementation of each and every provision. I am not privy to what the negotiations are on these various conditions and understandings, but anything you can do to reinforce where we were going with this treaty we would certainly appreciate. But I would like to make a comment about the Article X, Article XI situation, just some general remarks; because it is an important question of subsequent practice, what do we do. Senator Hagel. I would say incidentally, Mr. Secretary, that this is one of the key elements of the discussion of the convention in question, and my guess is if that is not resolved in some way here this convention is not going to be passed. Mr. Lehman. Well, I hope you can resolve it. I like to think we resolved it in the negotiations, and let me explain why. The issue of assistance--both these issues are not new-- they came up fairly early. In fact, assistance was, I think, in the initial draft that we tabled back in 1984. So these were not new issues. We made it very clear throughout the negotiations that all of this was subject to Article I, which is the fundamental obligation not to assist. So we reiterated that again and again and again. But the most important, I think, telling factoid in support of the U.S. interpretation is the fact that after the convention was done so many of the usual list of suspects were so unhappy that they did not get what they wanted in these provisions. That is why I wish the critics would be a little more careful about asserting that they did get what they wanted, because they did not. Now, if you can further strengthen that, then God bless you. Senator Hagel. Thank you. I would like to stay with you, Secretary Lehman, on another issue. We heard an awful lot of conversation last month, and appropriately so, about how do you really deal with the uncivilized nations that we refer to as the rogue nations, those who are most unlikely to sign this--North Korea, Syria, Iraq, Libya. Does that give us, if we would ratify this convention, a leg up, a moral high ground? I mean, does it give us more ability, better ability to deal with those nations? I mean, we know from 1925 on we have had the Geneva Convention and other treaties, conventions, agreements. But when you are dealing with uncivilized nations, they will resort to uncivilized means. I think that is an important part of the dialog here. Incidentally, I appreciate very much your opening comments about information, because that is what this should be about. This should not be about Republican-Democrat, conservative- liberal. This should be about doing the right thing for this country. So I appreciate very much your thoughts. Mr. Lehman. Well, I will tell you, on rogue states we have such a record of successes and failures that I can package them any way you want. But I will tell you what I personally think, which is there comes a time when you simply must not tolerate this sort of thing and you must take action. And if other nations will join you, as they did in the case of driving Saddam Hussein out of Kuwait, then that is what you have to do. If you have to act alone, as we did in the case of Libya, you do it. You have got to make sure that the rogue states understand that there are severe consequences of their actions. Again, let me echo Bill. I was in the Pentagon when, in the very last month of the Reagan Administration, we had the CW use conference in Paris. Our position was--you name Iraq--but you know, the foreign policy people were all divided over that, the allies were divided over that. We did not name Iraq. My view was that was a big mistake. My administration made it. I was a part of that administration. I opposed it, but we did it. OK, we are guilty, too. There is a consequence to that, and the consequence was that this policy of sort of constructive engagement with Iraq because Iraq is this viable Arab country of the future led us to too often keep a low profile on the enforcement question. As a result of that, we ended up having a war in which we could have faced these weapons, and there is still some debate of what the consequences of the weapons existence was. I think you have to take a strong stand. I will tell you right now, Bill alluded, I think, to Korea. General Odom. No. Mr. Lehman. I thought I heard you say Korea. But anyway, I have got Korea on the brain, I guess. General Odom. Assume I did. It is all right. Mr. Lehman. Maybe I read something you said some time back on Korea. But in any case, I will not attribute anything to Bill any more. In the early days of this administration, they did in essence what we did at the Paris CW use conference, on not supporting the IAEA suspect site inspections on Korea. Indeed, we had people backgrounding that--what a terrible thing it would be if North Korea were to withdraw from the NPT--and therefore we could not do anything to rock the boat. What we were sending was the signal that we would rather have a violator stay in the treaty than hold them accountable for their violations. It was a terrible thing to say. It has continued to complicate our nonproliferation policy. I am hoping that the administration has moved beyond that. Things are developing in North Korea. Some things are not under our control. Maybe it will all work out fine. But I think we made some mistakes. We can learn from those mistakes, though, and move on, and that is what we ought to be doing. I think in the CWC have got additional tools and we ought to use them. Senator Hagel. Thank you. We have been joined by our colleague Senator Kerry from Massachusetts. What I think I will do is go back to a 7\1/2\ minute time level so that everybody gets a fair shot at this, and I do not know who else may come. Would you defer to Senator Kerry? Senator Biden. I interrupted him in asking a question. Senator Hagel. Senator Kerry. Senator Kerry. Thank you, thank you. Thank you, Mr. Chairman. Welcome, gentlemen. Thank you for taking time to join us today. It is my understanding, Mr. O'Malley--correct me if I am wrong, because this is just a staff summary, and I was not able to hear you. But your principal objection I understand is on the issue of corporate secrets, trade secrets, intrusive inspection; is that correct? Mr. O'Malley. Yes. Senator Kerry. Help me, if you would, to understand that. I mean, we have got an industry that obviously has a lot at stake, the chemical industry, correct? Mr. O'Malley. Yes. Senator Kerry. The chemical industry itself supports this treaty. These are the people that are going to be inspected. The Synthetic-Organic Chemical Manufacturers Association, the Pharmaceutical Research and Manufacturers Association of America, the Biotechnology Industry Organization, the American Chemical Society, the American Physical Society, the American Institute of Chemical Engineers, the Council for Chemical Research, they all support it. They even went to the extent of creating seven test inspections to determine how it really worked and what the threat to them might be. In addition to that, they have the right to object to any particular inspector coming in that they suspect of espionage or have reason to believe might spy. What is it that you know that they do not know? Mr. O'Malley. Well, I am not sure what I know that they do not know. In my opinion, though, the kinds of companies that might be affected by this convention transcend the chemical companies that you just spoke about. I have an equal number of letters from different kinds of associations, the aerospace industry and others, which express serious concerns about the Chemical Weapons Convention as it relates to industrial espionage. Senator Kerry. Well, are they going to be inspected? General Odom. Yes. Mr. O'Malley. Yes. Senator Kerry. By virtue of a challenge, conceivably, correct? Mr. O'Malley. Conceivably. Senator Kerry. But the challenge requires an appropriate showing. First of all, there is going to be a guarantee, because we are going to even--I think, with Senator Biden's leadership--go further on the search and seizure to guarantee our constitutional rights. Is that correct, Senator Biden? Senator Biden. That is correct, we are going to have a provision requiring probable cause be established before a Federal judge to get a search warrant. Senator Kerry. Would that change your feeling about it a little bit? Mr. O'Malley. It would be helpful, but I am not sure that that would be totally significant in terms of protecting the intellectual property. Senator Kerry. Well now, you know that there is a compartmentalization capacity with respect to inspections. The only thing that is available to be inspected are those things that are directly shown to be with respect to possible production of chemical weaponry. In fact, you are allowed to set up a procedure where you actually close off or avoid any penetration of those other areas where you may be doing something that is not involved at all with chemicals. Mr. O'Malley. Hopefully those procedures would work and would be effective. Senator Kerry. But is it not significant that the industry itself believes they will work and supports the treaty? Is that not significant? Mr. O'Malley. Well, again, I do not know what the motivation of the chemical industry is in this regard. I can only speak of industry representatives that I have spoken to in connection with the Economic Espionage Act of 1996, and they have severe concerns about their inability to protect their secrets, security or not, against professional foreign intelligence services. I mentioned earlier this list of national critical technologies which the FBI is charged to protect, and it is very, very broad. I think if you read this list and compare it with the chemicals identified in the convention you will see a nexus between those chemicals and the companies involved in these technologies. Senator Kerry. Well, let us try to go again to the reality of this. Are you aware of the limitations on challenge inspections that could be conducted in any 1 year in this treaty? Mr. O'Malley. Yes. If I may, though, you mentioned earlier that the United States or whatever country is involved in terms of inspection could object to the presence of an inspector which they had reason to believe might be an intelligence officer. Senator Kerry. Right. Mr. O'Malley. Well, that is much easier said than done. It is not all that easy--it might be easy to identify an intelligence officer, but it is significantly more difficult to identify an agent of that officer. In other words, if I were an intelligence officer I would try to recruit a chemical engineer who might be appointed to be a member of this inspection team. Senator Kerry. But the point is if you do not have confidence in the person coming in you can peremptorily just not let him in. You are only going to let people in you have confidence in, number one. Number two, under the budget, under the budget when this is running at full tilt in 3 or 4 years, it is anticipated that the most you would be able to have is conceivably two challenge inspections per month, approximately 20 to 25 globally, globally. Will you explain to me what the potential threat ultimately to the United States is of that kind of rate of challenge? Mr. O'Malley. Well, you have got the challenge inspections and you have got the routine inspections. I would not distinguish between the two of them in terms of the ability to collect proprietary information. Senator Kerry. But the routine are as to a more limited kind of grouping of entities. Mr. O'Malley. Exactly. Senator Kerry. More clearly defined. Mr. O'Malley. What I am suggesting is an inspector does not have to go into a company and get the total take as to what that trade secret might be that would be helpful to the person who had recruited him. There are bits and pieces of information that can be acquired over a period of time that might add up to a significant whole at some point in time. Senator Kerry. So in essence--OK, I follow you. In essence--I need to cut you off there simply because I understand what you are saying. I want to be able to ask General Odom something. But I sense--in essence, I mean, to sort of reduce it to its lowest common denominator--you are seeing the potential for some goblins and in effect others directly involved are not concerned about it. And we just have to weigh, is your sighting of this potential goblin weighty enough to reject the treaty or is the sanguinity, if you will, of the industry itself and those who will be inspected to be taken at greater value? And I think that is the issue we have to measure. Mr. O'Malley. Two points. Number one, I would not label them goblins. We are talking about the real world here, and to label them goblins seems to diminish the seriousness of the threat. Senator Kerry. I believe in goblins. Mr. O'Malley. Well, I do not. Second, I mentioned earlier in my testimony that those who are charged with making the strategic decisions regarding this particular treaty ought to make that decision with a full deck of cards, that it ought not rise or fall on any counterintelligence concerns expressed by me or anybody else, but they ought to be considered in the total context of all the problems that are being considered by the policymakers. Senator Kerry. Sure. I respect that. And when I say I believe in goblins, I believe there are nefarious types out there clearly who want to try to push the envelope. You have to be on guard about it. But I suspect we would be. Senator Hagel. Senator Biden. Senator Biden. Mr. Lehman, comment on what Mr. O'Malley had said, please. Mr. Lehman. I agree with him that these are not goblins. There is a real problem. But it is hard to imagine any issue we spent more time on than this question of how do you balance intrusive inspection with the risks of losing national security or proprietary information. A lot has been said on it. A lot has been said before. But let me try to bring maybe some new twists or perspectives on it, just taking into account what has been said. First is, we ultimately came to the conclusion that there was a risk with the inspectors, but it was not the biggest risk. So I guess there I have not seen any study that says that is the big risk. In fact, what I think we have gotten from industry is, and of course what the national security community has found, is that turncoats in your own system can do a tremendous amount of damage. An inspector who comes in, who is escorted, who has got rules, people are watching him, yes, he is bright; if he is recruited, he can do some harm. But at least you have got a feel for the problem. If you have got a turncoat inside your system, be it business or the intelligence community or in the military, you have got a real problem. Senator Biden. By the way, when I speak to these guys who run these companies that is what they say. They would much rather have the guy coming in in a team, as part of a team, with the ability to have these management agreements and facility agreements before they come in. If they were given a choice of that or somebody coming in, either literally breaking in, nefariously getting in, or be a turncoat within, there is no question which side of that equation they would pick taking their chances on. You know it, because it is your business. That is how you make your living, helping these guys prevent against the last two categories. They would much rather have this than that. Mr. Lehman. I said ``turncoat,'' but it is even a worse problem than that. It is not even the question of the person who is completely dishonest. It blurs into this whole question of loyalty to your company, when do you change jobs, what information do you take with you. It is a very complex area. I share the analysis on the importance of proprietary information to our leadership in technology. What I am saying is this is not the big problem. We think we know how to handle this. There are risks, but we think we worked that. The other point I want to make is this. When we first started getting involved, first with the national security community and then with the national security community, on this question of intrusive inspections, some strange things happened. For example, they would say: We think it would be dangerous to have an inspector come to a certain place. OK, why? Well, they could learn all of this. OK, what keeps a spy from coming to that place right now? You would be amazed the number of times the answer was: Nothing. That in fact the interaction between the negotiating process having to do with these inspections and their intrusiveness helped the counterintelligence community in some cases and helped industry begin to understand that they had some problems that they needed to deal with--with or without the CWC. They still need to do a lot of work. Whatever you decide to do in the Senate on the CWC, you need to keep that process going of having the government experts, including the intelligence community, find some way to work with industry on this problem; because it is a serious problem. Senator Biden. Mr. Secretary, the irony is that the corollary to ``this will lull us to sleep,'' which is a concern--I think it is the most legitimate argument against this treaty in my view, is we will get lulled to sleep and not have to expend the dollars, the effort, in implementing and/or in continuing our efforts on countermeasures to deal with chemical weapons use. They are the two greatest--I think they are the two from my perspective most legitimate objections to this treaty. The corollary to that is, or the irony is, were it not for this treaty, were it not for this debate, companies would not be doing 80 percent of what they are doing now. All of a sudden everybody is figuring out: Whoa, wait a minute, this spectrometer guy who walks in, that guy does not have to be part of a team. He can stand outside that company gate right now. All of a sudden what has happened is this has sort of awakened, in my view, the outfits I am familiar with--the chemical companies, the biotech companies, the pharmaceutical companies. My colleagues know a lot about what their constituencies do, because we have to learn. After 24 years, I have learned about those companies. They are waking up. It has been a wake-up call to them unrelated to the treaty. One of the issues, though, that is raised and in the remaining time I would like to get to, my remaining few minutes here, is this issue people do think is very significant, and that relates to the intelligence capacity of the United States to detect cheating or anyone to detect cheating, and what constitutes militarily significant. If I am not mistaken, I remember it was during--I suspect you may be responsible for it, although I do not know that for certain. We went from the notion in the Carter administration of ``adequately verifiable'' to ``effectively verifiable.'' The terminology changed and so this debate about ``effectively verifiable,'' what constitutes effective verifiability. One of the things--and the intelligence community and two members of our CIA are here today if we need them for any input, are in the audience, who deal with this issue. The Joint Chiefs have testified on this. So you are going to hear a lot of debate, as I need not tell you or you, General Odom, about this issue of what is effectively verifiable. But it is a big deal what we determine. What we think is effective, each of us individually determines whether or not we think this is a verifiable treaty or whether we should vote for it, at least as it relates to verifiability. I want to talk about this notion of military significance. By the way, Shalikashvili said one ton. What he was talking about with one ton, he was talking about political impact and terror capability, not militarily significant. Everybody talks about the Joint Chiefs saying they have established that one ton, if you cannot detect one ton, up to one ton, then this is not effectively verifiable. The Chiefs never said that, but we will have to deal with that on the floor. I know you both know that. One of the things that I get, I think we get confused about and what confuses the public--and I am diverting slightly here to make a larger point, trying to make a larger point or get to a larger issue--is you asked the rhetorical question, Mr. Secretary, why after all these years do so many people know so little about this treaty? I think it is for two reasons. One, those who are for it basically assume there is inevitability. This is going to pass, because hard-nosed administrations had ne- gotiated this thing. Therefore there was sort of a credibility given. I mean this sincerely. I think this is why. I think this is the answer. Second, those who are against it are usually those against any treaties. Therefore, it is just kind of like there is inevitability. Well, everybody has forgotten, there is no inevitability to this thing passing, so now people are focusing for the first time, and our colleagues understandably do not know a lot about it, because they have not, other than those who are involved in it, they have not focused on it a lot. Now, if I may, can I ask the question? I appreciate the time. So we get down to this verifiability issue and what constitutes effective verification, and we hear talk from our witnesses, not today, not from the General, but from many witnesses we have had, and people use phrases like: well, one vial, one vial of chemical weapons, and so on, and one ton. And one ton sounds--God almighty, one ton of a chemical weapon obviously can win a war, they think. What I want to talk about is the distinction between a tactical advantage that could be gained by the use of an agent and a strategic advantage that could be gained by, say, the use of up to one ton of an agent. Here is what I want you to talk-- I want you both, General Odom first and then Secretary Lehman. If you think about the actual use of these weapons, in the Iran-Iraqi War each side used tons and tons of this. They used tens of tons of these weapons. And it did not give either the capacity strategically to save the day. Now, I think it is bad to use in any event. I am just trying to get at this part about what constitutes a threat to U.S. security if we do not detect it. I would also point out that we have hundreds of thousands of tons, we and the Russians. Now, the reason why our military felt there was a need to have more than a ton, or 10 or a 1,000 or 10,000 tons, is because I assume we concluded that one ton or anything that we possessed did not have the capacity. One--one--missile, one nuclear warhead on top of a Peacekeeper missile can ruin somebody's day. It can really change the dynamic of everything. One ton of chemical weapons-- as the intelligence community tells me, the rule of thumb, General, is you are about one ton, one square mile, and it dissipates. Now, as you said, General, for those troops who are within that square mile this is militarily significant. It is big deal. And if you have everybody gathered in a soccer stadium, it is a big deal. And it is a big deal terror capacity. But is it militarily significant in a strategic sense, in a sense that our national security or a major portion of our capacity in any conflict could be jeopardized by ``a ton''? And I realize this is a bit artificial, to be using the ton. But it has become almost a mantra among people who are concerned about verifiability. Can you talk a little bit about the significance of it in that sense, General? Assume we could not detect up to a ton. And some will argue we could not detect more than a ton. But let us just artificially, just for the sake of discussion, assume we could not detect up to a ton and countries, rogue or otherwise, members of this or- ganization who signed the treaty, could develop up to a ton and use it. What consequence for you as a military planner does knowing the other team had a ton of chemical agents available to them? General Odom. Well, Senator, you have made in my view one of the strongest arguments against the treaty, for making it largely irrelevant. Senator Biden. That may be. That is why I want you to talk about it. General Odom. It is sort of in line with my argument here earlier. I do not think--if you look at the record, when one side has chemicals and the other does not, the probability of it being used seems to be much higher. When both sides have it, chemical weapons do not seem to be used. Senator Biden. How do you explain Iran and Iraq, then? General Odom. Well, they did not both have it at first. Senator Biden. But they both ended up having it. General Odom. Well, but when the Iraqis started out using it the Iraqis were in trouble. My own experience in learning to use, target chemical weapons back when we had them, I was a young armor officer in Fort Leavenworth doing map exercises. I became very unimpressed with chemical weapons. You do not like them. They are unpredictable. There are other ways to blow people away, and you would rather have something that is easier to control. So I think the more professionally trained military officers are likely to be very much against these things. When it comes to a ton or even 200 or 300 or 400 tons, I think we have certain capabilities. The prospects of keeping them from being used in a conflict are very high. And I do not see that this treaty is going to affect this much one way or another. It does not seem to bear on it. The people who really want these weapons are going to get them anyway, and the ones right now who are troublesome states are clearly not going to be caught up in this. Now let me make another point about that there is another way to look at this. It is hard to weaponeer these new weapons, but there is a lot of new technology emerging. I do not know how to judge that. I mentioned Martin Shubick's piece earlier that the price of killing people is going down because of technological change in this regard. It is easy to do that in sort of theoretical calculations. Whether or not these new technologies can be weaponeered and brought into the battlefield even for terrorist use is an open question. So as I said earlier, we are in a period of dynamic change and that makes me nervous that anybody can write any kind of regime that is going to catch these kind of things. That is why I say the spirit of the treaty I have no trouble supporting. I just do not understand why one would want to strap themselves to this regulatory system and pay the price when the probable outcomes of it are trivial. Senator Biden. Thank you. Mr. Lehman? Mr. Lehman. Senator, you often hear people say chemical weapons have no military utility. I do not believe that. I think they can. During the mid-eighties when we faced the Warsaw Pact at the Fulda Gap, I thought it was important to maintain a continuum of deterrent capabilities and that a modernized chemical weapons component with the binaries was an important part of that. The world has changed since then. We have alternative weapons, advanced conventional munitions. What you saw in the Gulf War was that clearly when you ask people who have to deal with the logistics of warfare, what is it you need on station ready to go, they wanted weapons they knew they were going to have to use and they wanted them in large quantities, and they did not want to waste space with having a chemical deterrent there. I remember going through the chemical training facility down at Fort McClellan, putting on a suit and decontaminating equipment with live nerve agent. I realized I did not want to go to war wearing that suit. In Vietnam I used to carry my gas mask with me on a lot of the types of operations that we went on, and I hated having to carry that. One of the things I learned out of that experience to me was that in today's world it is much more important--it is less important that we have chemical weapons than that we do everything we can to not have them used against our troops and reduce the chances they will be used. But we also have to make sure we maintain our defenses. On the military significance question, I very much fall in the category of those who say, you know, the bullet that wounds you is militarily significant. Therefore, we need to have the tools that deter the use, and we need to have the will to enforce compliance. But when you say your example of a ton, what does a ton mean? Well, in certain types of scenarios a ton can be very important. But remember, we are the United States. It ought to make us awfully damn angry, and with the CWC it ought to mean everybody ought to support us and we go in and we solve the problem. Senator Biden. Well, here is the point---- Senator Hagel. Senator Biden, let me ask this. I want to stay on time here, and I am going to ask a question. I am not going to take my full 7\1/2\ minutes. I know Senator Kerry wants to get back to it. I will get back to you as well. What I want to do is go back to you, Mr. O'Malley, and I would like you to develop more of your counterintelligence insight, background, experience, as to how it relates to this treaty. Where are the real vulnerabilities coming at it from your years of working in the counterintelligence business? Mr. O'Malley. I think, again, the concern that I have, shared by certain elements of industry, is in the illicit acquisition that this would facilitate, this convention, illicit acquisition of proprietary information that this would facilitate. It is not the only means, by any stretch of the imagination, of acquiring American proprietary information. It can be done in other ways, including technical means and the Internet and so forth. What this does, though, it would give those who are desirous of collecting such information another avenue of approach. I mentioned earlier this list of critical technologies that the Bureau is charged with protecting. I might also add that this also could con- stitute essential elements of information, i.e., what the other side is seeking. So there is no doubt at all in terms of what Senator Biden mentioned earlier, that any corporation would prefer to have someone coming in rather than a recruited agent inside. I mean, that is somewhat of a false choice in my opinion. That recruited agent inside ultimately happens as a result of people coming in and getting to know and have access. I am not at all convinced that whatever security measures are present in this Chemical Weapons Convention are adequate. The primary mission of counterintelligence is to identify, penetrate, and neutralize such systems. I can give you a specific concrete example of such an instance. I formerly represented the U.S. at something called the NATO Special Committee, which consists of the counterintelligence chiefs of the NATO member nations. We met twice a year in Brussels. Security, as you might well imagine, was extremely tight. They had all the usual bells and whistles. Everyone was vetted as they should be. And we would meet in camera and discuss sensitive information. Lo and behold, one of our discussions ended up in a Bulgarian newspaper. So something was wrong. The secretariat of the NATO Special Committee asked for an FBI counterintelligence officer. We assigned one to the committee and, lo and behold, the secretary to the head of the secretariat was an East German agent. None of these security measures were able to identify this particular woman, who was a British national. So I am not at all convinced that these security procedures will be adequate. But if they are, if the government believes that these security measures are adequate and in a sense acts as a guarantor of these security measures. And if a company does lose a trade secret as a result of these kinds of inspections, then it seems to me it ought to be fair on the part of the government to reimburse that company for the value of that trade secret. Senator Hagel. Mr. O'Malley, thank you. What I am going to do for my colleagues, if this is agreeable, I have just been given a note indicating that some of our witnesses have some pressing time problems. So what I would recommend that we do 5 more minutes each and then allow our panel to leave. Senator Kerry, is that fine? We are going to do 5 minutes each, and that way the panel can get to their other business. Senator Kerry. That is fine, absolutely. I have got to go to another meeting, too, so I appreciate it, Mr. Chairman. Gentlemen, I have been struggling with this since one of our earlier hearings, when I went back and read a little of the history of the negotiations on this. We had Secretary Richard Perle here, former Secretary Perle here. And when Ronald Reagan and the administration first proposed this treaty--and they were the first ones to propose it--they came up with a concept called--you know, they wanted total verification, correct, General? I mean, that was the great goal, being really intrusive in our verifications. So they came up with something called ``anywhere, any time.'' We are going to go anywhere, any time. We are going to be able to challenge anywhere, any time. That is the only way we can be safe. Then, whoops, all of a sudden people here said: Un-uh, we do not want that. Correct? General Odom. Exactly right. Senator Kerry. Anywhere, any time? Oh my God, they could come into one of our places and look anywhere any time. And so we have got to be a little bit smarter about how we come at this. So the negotiators went to work and did a heck of a job, I think, over a period of time. General Scowcroft, whom I have great respect for, and General Powell, who this morning was before the Veterans Affairs Committee testifying in favor of this treaty, many other players of enormous military background, intelligence background, national security background, clearly with the United States of America's security interests at the forefront of their thinking, said: We are going to come up with a different scheme. And they did, to protect our sort of black institutions, as we call them, from being intruded, but to provide sufficient intrusiveness to be able to do something effectively with this treaty. Now, I sort of see the two of you setting up what I have seen my colleagues on the other side of the aisle setting up over the last few weeks, which is this Catch 22 situation. You come in here, General, and you say: It is not verifiable, it is not verifiable enough. We have got to have more intrusive verification. But then on the other side, a whole bunch of other people are sitting there saying: It is too verifiable; we cannot have this, because you are going to get our secrets. General Odom. I did not take that position. Senator Kerry. I beg your pardon? General Odom. I did not take that position. Senator Kerry. You do not believe--you think the verification is strong enough? General Odom. I would vote for the treaty without verification. I do not want to vote for the treaty with verification. I think the verification is the big flaw in it and that you have got a huge regulatory cost you are about to strap on American industry. Most of them do not even know it is coming. The ones who are in favor of it clearly want some other payoff in terms of---- Senator Kerry. OK, fine, I accept that. It is even easier to deal with, frankly, from my point of view. I am happier to accept that. But you are aware of people saying it cannot be verified and that has been a major argument, correct? General Odom. That is true. Senator Kerry. So is there not a Catch 22 in that? I mean, you just go around and around in a circle. General Odom. My conclusion is that we should not bother to negotiate the treaty. I said in my testimony I think it is a misconceptual approach. The poor negotiators have been told to take on a problem that defies being managed with this approach. You know, I just do not think you can get there from here with this kind of treaty. And as I made the point in my testimony, I originally came to it believing that it was a fairly benign thing and why not support it, it is on the side of virtue and why should I stand up in favor of sin? But when you get into it you begin to real- ize that it has some costs. It probably creates some illusions and, it just very well could produce a lot of unintended consequences that we cannot fathom at all. The length of the treaty was the first thing that raised my suspicions. I have sort of a little rule: The length of the treaty is related, inversely related, to its effectiveness. Senator Kerry. You do not believe that that spells out the obligations and crosses the t's and dots the i's so that people really are held accountable? My light is going to go off in a minute. I want to ask you a comparative question here. General Odom. Also, back on the early one when you talked about the mutual intrusiveness during the Reagan administration, I saw that coming and could not understand why they wanted to go anywhere any time. Senator Kerry. Well, let me ask. I wanted to ask Secretary Lehman to respond to what I just asked the two of you and simultaneously to answer this question if you would, because we keep missing this point. Assuming that the treaty were either rejected--Mr. Secretary, if you would answer, I want you to answer the specific issue I just raised; but also add to that, would you please, what are the implications for the United States at this moment in time, where we now have 74 nations that have ratified it--it is up--where we now have 160 or so have signed it, we can anticipate that if we and Russia come on board a whole lot of other people are going to, what are the implications with respect to any possibilities of renegotiating it, changing it, going back and fixing it in terms of other countries, given the date and given the momentum of what will take place here? If you could comment on both. Mr. Lehman. I would be pleased to. Let me pick up a bit on what Bill has said about any time anywhere and the Catch 22 aspect of that. There is a lot of--you know, we all look for slogans to describe what we are doing, and ``any time, anywhere'' was our way of trying to summarize what we were trying to do. But clearly, Ronald Reagan's policy was not to go back to the old Biological Weapons Convention approach, where you ban something and God knows what you do about it, you do your best. But rather, he wanted to have treaties that were well crafted, that had verification provisions, that gave us some tools. I am sympathetic with Bill that I wish the treaty were not so long. I am seeing right here in the debate in the Senate one of the disadvantages of having long treaties is that you have got to read the whole thing over a thousand times, and then you have got to debate it, and then you may not yet have gotten it right. So for that I apologize. But what we discovered was in some cases it was very dangerous not to have a longer treaty. You had to lay out things. I can give you a lot of examples, but let me go to your question and use that to sort of find an example, the question of access and intrusiveness in inspection. When Bill says he was concerned about this ``any time, anywhere,'' well, he was not the only one. Ronald Reagan was, too. So the NSDD that was drafted that implemented this said: Any time, anywhere, but by the way you have got to protect national security information and proprietary information; go figure out how, with some general guidelines. This notion of managed access was inherent. We did not invent the phrase until later to bring some people together, but it was clear from the beginning you were going to have to balance these factors. Also, take the question ``any time.'' What we really wanted was to get to a site quickly. The more we did studies, the more we discovered several things. One is some things that they hide at a site, you cannot get there fast enough; it is going to be gone. It will be gone in seconds or minutes or hours, but certainly before your plane gets there. On the other hand, there were other things it might take months to get rid of, or maybe never, at least not in any human lifetime. So we had to balance all of that. Then there was this question of intrusiveness. I think we could have simplified that, but we did not. The reason we did not is that the intelligence community and the defense community wanted more details spelled out in the treaty to give them specific hooks and rights. And since I did not think we could get this treaty through the Senate without making sure that it met their standards, we negotiated to get what they wanted into that treaty. So a lot of that length is what the intelligence community and the defense community wanted to protect themselves. That is why all of that is in there. Now, the implications of what happens if you do not ratify. Well, you heard a lot of discussion of what it will mean for nonproliferation. I think that is the important thing. We are going to lose a lot of leadership. There are some issues that will undoubtedly occur that people will mention that I think are important, but we ought to know them for what they are. A lot of people out there, the rogue states, the usual list of suspects, will use this as an excuse to do what they want to do anyway and we will just make it easier for them. But I do not think we ought to excuse it, no matter what we do. Businesses will sit there and realize that if you try to renegotiate you are probably going to see a number of our good friends who are these very economic competitors decide they do not want to negotiate; because, frankly they do not care if we are in the treaty, because if that means more production goes overseas to their countries and out--hey, you want to negotiate, fine. But I do not think they are going to want to fix this quickly. Senator Kerry. That is because they have an advantage written into the treaty. Mr. Lehman. See, the problem is that, because the U.S. wanted to try to promote universality, you have this provision that limits certain types of trade. You can look at the near- term costs, and you can dispute how much are direct and indirect costs, and it all gets kind of subjective perhaps. But the real reality is there, is that a lot of sharp-pencilled businessmen are going to understand that they start moving production around to take advantage of this treaty. There are a lot of factors like that. But I will tell you what my concern is. I am a national security person. My point is this treaty gives us a lot of useful tools. John Deutch says it, Jim Woolsey said it, George Tenet says it. We know that. I think what we got out of the treaty was these very important tools, and we want to use them. If you follow Bill's logic, which I can respect, which is basically the bad guys are going to try anyway and you are not going to guarantee you are going to be able to stop them; his real argument then is he says: I would go with the treaty, but without the verification. So what is the real issue? The real issue is are these tools worth the costs? And I think that is a legitimate question, and I think people can come out, reasonable people can come out on a different point. What I am finding fascinating is, though, that this is not a new issue. We thought we had addressed those costs. We thought we had driven up the benefits and driven down the risks and costs, and sometimes it sounds like nobody heard us. Senator Hagel. Secretary Lehman, thank you. Senator Kerry. Thank you, Mr. Chairman. Senator Hagel. Yes, sir. Senator Biden. Senator Biden. I have a number of questions, but I do not know how I could, quite frankly, better summarize where we are. You have just said better than I have attempted to say it. This really gets down to that fundamental question. I mean, when all is said and done, all the talk about verification, all the talk about the threat to individual companies through espionage, all of that--I am not suggesting people who make those arguments are not sincere--but the truth of the matter is it really is not about that. It really does not get to that. It gets to what General Odom is talking about, just are the tools worth the cost? And some believe the costs are much heavier, some believe they are onerous, and some believe they are insignificant; or in relative terms clearly the benefits outweigh the costs, the tools available outweigh the costs we have to pay. And from my standpoint, when I take a look at all of these different scenarios of what it takes for the worst case to happen, the worst case on the military side is we are in this treaty, we are lulled asleep, one of the signatories, the 74 nations, is able to amass a significant chemical capability with emerging technology in such a way that it allows them on a battlefield and/or in an open conflict with the United States or one of our allies to prevail or enhance their probability of prevailing. Well, the truth of the matter is an awful hell of a lot of things have to happen for that to happen. It is not merely that we do not detect one ton or two tons or twenty tons; we do not detect the reorganization of their military apparatus; we do not detect the fact of how they maneuver; we do not detect that they are using protective gear in a different way than they did before; we do not detect. We would have to not detect a whole hell of a lot of things unrelated to whether or not they are making chemicals, in order to get into a position where our military circumstance changes. With regard to the issue that Mr. O'Malley raises, we would have to--one of the reasons, one of the things everybody misses, Mr. Secretary, is what you did on this managed access piece. Everybody misses that. Everybody misses that this is not a matter of being able to come in with 2, or 2 to 15--I met with the Intelligence, we all did, with the Intelligence Committee last night for 3 or 4 hours, and we went over this piece about managed access on these inspections. It can be a team of from 2 to 15 people. You have to run up a hell of a scenario to figure out other than how accidentally some company, who by the way companies now are going to have the Commerce Department, with the help of the intelligence agencies, teaching them how they would deal with inspections so there is transparency with regard to chemical production, but not transparency with regard to trade secrets or unrelated activities taking place. That is a technology, if you will, that will emerge. So you have got to come up with an incredible scenario other than pure luck to figure out how such a team is going to either cause great damage, as was suggested yesterday, by coming out and implying the Dupont company is making chemical weapons. You have got to have a lot of collusion for that to happen. You have got to have a whole lot of things happen of not knowing how to manage the access. I mean, they are real stretches. They can be done. They can be done. It can happen. It can happen. So for me to get to the end, I get to where you are. If you look at the tools available to us versus the risk we take, I do not even think it is a close call. Yet I do not, General, sit here and say: You know, this treaty is the be all to end all. You know where I end up, Mr. Lehman? I end up with your statement from 1994, which I would like to ask permission to be placed in the record if I may. Senator Hagel. Without objection. Senator Biden. I end up at a place where the biggest benefit from this treaty and us being in it will be the way we will be able to impact on behavioral patterns of other countries, behavioral patterns. That is, how it will impact on--this new regime will not solve the end of chemical weapons, will not prevent clandestine production of them. It will not. But it takes a hell of a conspiratorial scenario and a lot of luck for it to do any damage in my view, any real damage. And on the other hand, it will modify behavior. It is a little like what happens--if you want to be part of the community of nations that are viewed as civilized and have access to a thousand other benefits when you are in that economically, you are going to change your thinking. This helps change the thinking. I will not take the time now to go back and recount your statement, but you--actually, do you have that one paragraph-- where you ended your statement by talking about how the mind set had begun to change. I will put it in the record, but it goes to this larger issue. You say: For my part, I believe arms control and nonproliferation tools can be used to promote the national security and we must ensure that they do. The Chemical Weapons Convention is clearly a tool which can enhance our national security. I believe that unsuccessful conclusion of arms control agreements need not result in the neglect of our defenses, but it often has. In giving consent to the ratification of the CWC convention without reservation, the Senate should take real steps to support implementation of the treaty, fund strong defense programs, promote balanced national security strategy, and recognize the United States must be a leader in a very dangerous world. This world has undergone dramatic change and arms controls have been rushing by. In such a world, if we do not shape the arms control process to serve our interests we can be certain that some nations will be pressing in the directions that are not in our interest. The Chemical Weapons Convention before this committee is in our interests. Again---- This is not the quote I wanted to read, but thank you. Senator Hagel. Well, it was very eloquent. Senator Biden. It was. You did very well. It is still relevant. It is not the quote I am looking for. I will put it in the record without holding us up. [The material referred to follows:] One can see this, in one small example, even in the way our pursuit of a ban on chemical weapons reinforced our commitment to the spread of democracy. We sought intrusive verification measures so that we might reduce the threat posed by the Warsaw Pact, but also because we knew that totalitarian regimes cannot long survive when their citizens are exposed to contradictory information. The requirement for detailed information on chemical weapons stocks and facilities before reaching agreement, at the time an innovative negotiating step which led to the December 1989 U.S./Soviet Phase I data exchange and the recent Phase II exchange, sparked a controversy which continues in Russia even today over the history of the Soviet chemical and biological weapons programs. Our demand for trial inspections prior to completion of negotiations aided in crafting a better treaty, but it also caused Soviet citizens to ask why they themselves could not see what Americans were allowed to see. Our insistence, first in the U.S./Soviet Bilateral Destruction Agreement (BDA) of 1990 and later in the CWC that destruction of chemical weapons stocks be done in a safe and environmentally sound manner has created a grassroots political process of ``NIMBY''--not in my backyard--which has complicated agreement on a chemical weapons destruction plan but also complicates a return of the old system. One should not exaggerate the role that arms control has played in promoting our national agenda, but one should not ignore it either. Senator Hagel. Senator Biden, thank you. General Odom, did you want to respond? General Odom. I just wanted to say, you made my objections seem far less than they are, and you have made this sound much more benign. I hope you do realize that I have said that the very things that you are saying we are going to set in motion here are likely to produce very serious adverse consequences, not trivial consequences. Senator Biden. Well, I did not mean to suggest you thought they were trivial, General. If I did, I did not mean that. I am just pointing out that I think that it takes a hell of a lot to get to the worst case scenario that I think you are most worried about. Senator Hagel. Senator Biden, thank you. Senator Biden. Thank you. Senator Hagel. Gentlemen, thank you. We are grateful, as always. If there is anything additional that you want to add for the record, we would be very pleased to receive that. The committee is adjourned. [Whereupon, at 12:21 p.m., the committee was adjourned.]