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                     NACIC CIEN 16-96, 13 November 1996
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        Item: The Intelligence Authorization Act for Fiscal Year 1997

Public Law 104-293, Intelligence Authorization Act for Fiscal Year 1997,
contains a number of provisions with direct or potential implication for US
counterintelligence (CI) programs.

The new law creates three Assistant Directors of Central Intelligence
responsible for efficient and effective technical and human-source
collection, oversight of Intelligence Community (IC) analysis and production
elements, and IC administration. The Act requires a new IC annual report
that assesses the preceding fiscal year (FY) activities of the IC-specifying
priority intelligence collection and analysis needs, and evaluating IC
performance-to assist Congress in making decisions with respect to
allocation for the IC. The broad aspects of these developments will
predictably include CI community programs and activities.

The Act requires a DCI report to Congress on potential responses (CI
specifically cite) to threats to and attacks upon the information
infrastructure of the US from foreign or other entities. (See CI Executive
Note 8-96, NIE on Foreign Information Warfare Program and Capabilities, 1
July 1996, on CI action in support of this issue.) The Act facilitates
future counterespionage investigations and strengthens CI support to law
enforcement. Section 601 clarifies FBI's right to subpoena telephone toll
billing records, and Section 814 authorizes the NSA, NRO, National Imagery
and Mapping Agency, and DIA to collect data of foreign citizens abroad for
use in law enforcement and CI investigations in the US. Noted in Section 603
is the need for law enforcement agencies to enforce appropriate section of
Title 50, U.S.C., relating to protection of identities of undercover
intelligence officers and sources.

Relatedly, the Act established within the NSC a "Committee on Transnational
Threats." Comprised of the DCI and the Secretaries of State and Defense,
this body is charged specifically with identifying terrorism, narcotics
trafficking, proliferation, and organized crime threats-all of which have a
CI dimension-and developing strategies and coordinated interagency responses
to combat them.

Status. The Intelligence Authorization Act for Fiscal Year 1997 was signed
by President Clinton on 11 October 1996.