Intelligence

FBI to arrest Israeli Pentagon spy

From Roland Watson in Washington

THE FBI has uncovered an Israeli spy at the highest levels of the Pentagon who may have influenced White House policy on Iraq and Iran.

Federal investigators have a major investigation underway and are poised to arrest the suspected "mole", who was working from inside the office of Donald Rumsfeld, the Defence Secretary, CBS News reported last night.

The FBI believes that it has "solid" evidence that the mole supplied Israel with highly classified documents, including secret White House deliberations on Iraq and Iran.

The claim drew a swift denial from the Israeli Embassy in Washington last night.

CBS quoted sources saying that the suspected spy, described as a trusted analyst in the Pentagon, handed over a confidential presidential directive on US policy towards Iran while it was "in the draft phase with US policy-makers still debating policy".

This put the Israelis "inside the decision-making loop", giving them the opportunity to "try to influence the outcome".

The FBI is also examining whether the mole tried to steer US policy on Iraq.

The analyst was said to have close ties with Paul Wolfowitz, Mr Rumsfeld's deputy, and Douglas Feith, a Defence Under Secretary, and was assigned to a unit within the building tasked with helping to develop the Pentagon's Iraq policy.

The Pentagon was in the vanguard of arguing the case for toppling Saddam Hussein and both Mr Wolfowitz and Mr Feith are leading neo-conservatives and were vigorous supporters of the Iraq war.

Mr Feith has been accused by some critics of stretching US intelligence too far and removing its caveats.

The FBI inquiry is believed to involve two people who work at the American Israel Public Affairs Committee (AIPAC), a powerful pro-Israeli lobby in the US capital.

The investigation is headed by Dave Szady and has involved wiretaps, undercover surveillance and photography that CBS News said documented the passing of classified information from the mole to the two AIPAC employees and onto the Israelis.

Lesley Stahl, a CBS News correspondent, said that the FBI had a fully-fledged espionage investigation under way and is about to "roll up someone who agents believe has been spying, not for an enemy but for Israel, from within the office of the Secretary of Defense".

CBS News said that it had placed repeated phone calls to the suspected spy, but none had been returned.

AIPAC told CBS News that it was co-operating with the Government and is taking legal advice. It denied being involved in any wrong-doing.

The US Administration has told AIPAC that it wants information about the two employees and their contacts with the suspected spy.

Asked about the CBS News report, a spokesman for the Israeli Embassy said: "We categorically deny these allegations.

"They are completely false and outrageous."

Copyright 2004 Times Newspapers Ltd.

August 28, 2004 at 07:33 PM in FBI | Permalink | TrackBack (73) | Top of page | Blog Home