February 3,2004

MEMORANDUM

To: Commissioners

From: Kevin Scheid, Team 2

Subj: Team 2's Briefing on February 10

You are scheduled to receive an interim report from Team 2 at your next meeting on
February 10. Attached is an analysis of DCI and Secretary of Defense authorities on
intelligence and three unclassified articles (see tabs) that will help you prepare for this
discussion.

Our goal in this briefing is to seek your guidance on strategic issues we face in
approaching the monograph. Team 2 has been examining the Intelligence Community's
performance in the years leading up to the 9-11 attack and evaluating how and why the
"system" functioned the way it did from the perspective of: 1) effective collection of
data on transnational terrorism; 2) analysis of that data into coherent products including
warning products; and 3) the overall management of the function.

Besides areas of personal accountability, we posit that the central problem with the
Intelligence Community is that its current structure has impeded its ability to adapt to
revolutionary change the world has experienced over the past decade, leaving it incapable
of effectively collecting on and analyzing transnational terrorism among other twenty-
first century threats. This leaves the nation vulnerable to future acts of catastrophic
terrorism.

We plan to discuss with you options for addressing structural concerns of U.S.
intelligence in order to improve its ability to adapt to agile threats like transnational
terrorism. Implicit in these options is a basic question you need to grapple with as a
Commission: In light of the inability of U.S. intelligence to adapt to rapid change in the
international environment (e.g., rise of transnational terrorism during the 1990s), is the
nation willing to rebalance security and liberty by allowing its intelligence agencies to be
centralized under one person, given appropriate oversight mechanisms in the executive
and legislative branches?

Attachments: Matrix of Authorities

Tab 1: The Threat: Defining the Problem (Fenner)

Tab 2: Strategic Warning: If Surprise is Inevitable, What Role for Analysis? (Davis)
Tab 3: Central Intelligence: Origin and Evolution (Warner)
 WITH DRAWAL NOTICE

RG: 148
Box: 00001 Folder: 0002 Document: 10
Series: Front Office Files

Copies: 1 Pages: 3

ACCESS RESTRICTED

The item identified below has been withdrawn from this file:

Folder Title: Commission Meeting, 2/10/2004

Document Date:
Document Type: Chart
From:
To:

Subject' Comparison of Key Authorities of the DCI and the S

ec. of Defense regarding the U.S. Intelligence Com
munity

In the review of this file this item was removed because access to it is
restricted. Restrictions on records in the National Archives are stated in
general and specific record group restriction statements which are available
for examination.

NND: 241
Withdrawn: 03-05-2008 by:

RETRIEVALS 241 00001 0002 10