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More on that arms deal with Iran.

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It was an admission that should have made the bells ring and the sirens to scream, but it did not.

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Declassified FBI documents showing tonight that former National Security aide Oliver North told the FBI two years ago

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that he was actually helping to raise private funds for the Contras from his job in the White House.

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At the time, that was against the law for government officials to send military aid to the rebels in Nicolauqua.

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But the FBI, including the FBI Director William Webster, did nothing about North's admission.

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That fact came out at Senate confirmation hearings for Mr. Webster.

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His confirmation hearings do suggest that the FBI, and to some extent Judge Webster himself,

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did not respond to clear warnings to stop Lieutenant Colonel North's improper, if not illegal, activities.

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The FBI Chief Webster said that he never learned about Ollie North's admission that he was aiding the Contras.

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Webster said that that happened because of some trouble transmitting a teletype message two miles

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from one FBI office in Washington to another FBI office.

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The Senate Intelligence Committee evidently accepted that explanation, voting 15 to nothing,

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in favor of confirming Webster as the new head of this nation's CIA.

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The following is an audio representation of a declassified speech by former CIA Director,

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and former FBI Director, William H. Webster.

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Delivered at Bohemian Grove on July 22, 1988.

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This speech was delivered to people without intelligence clearance,

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and intended to be hidden from the public.

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When released, the CIA redacted an entire page which immediately followed this sentence.

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But, we have had a number of major successes, this year, proposed remarks by William Webster,

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Director of Central Intelligence, at the Bohemian Grove Lakeside Talk July 22, 1988,

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Introduction, fourth time at Bohemian Grove, personal recollections, this is the first time

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I've had the opportunity to tell you about some of my responsibilities at the CIA, and there

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is a certain irony in this for me. At the FBI I spent a lot of time telling the American people

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that what the FBI was all about, was law enforcement. Not spying. Now, I find myself speaking to groups,

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throughout the country, reversing all of that, assuring audiences, that at the CIA we are not

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in the business, of law enforcement. And then I tell them something about what it means to have

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the major responsibilities for spying, on behalf of the country. The groups I have talked to,

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have been fascinated by their, whole business of spying, though I can't take credit for their initial,

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enthusiasm. The public has been primed, by newspaper accounts, and by a number of popular books,

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on espionage. One of my officers confessed that he didn't know where to put, his own collection of

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books, on intelligence. But he figured they belonged somewhere between, the fiction and non-fiction shelves.

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The many stories about intelligence, vary of course, in style and authenticity. But they do have an

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impact. The other day at a National Security Council meeting, the president turned to me and said.

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Bill, I've just been reading Tom Clancy's new book, The Cardinal of the Kremlin, and the CIA is in

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trouble. We have had numerous offers of help perhaps in part because of novels like Tom Clancy's.

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We have applications from qualified Americans, coming in at the rate of 1,000 a month.

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But, we also hear from those with more enthusiasm than prospects.

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I recently received a letter that began, to the Honorable Judge Webster,

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Not too long ago I applied for a job at your agency, as a security escort, officer.

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I know that as a convicted felon, it would be difficult to obtain a position of that nature.

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But there are special circumstances. I look forward to your response.

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I also heard from a young American with big plans. He wrote Dear CIA, I am 12 and have been spying

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since I was 9. I am the leader of three kids spying clubs, and I specialize in making codes,

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and breaking codes. I spy, around my neighborhood, and on my parents. I know a lot about spying,

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and I love to do it. When can I join the CIA? A real professional. The youngster also sent me his

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business card. Spying has captured the imagination and engaged the talents of Americans, since the

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Revolutionary War. I have a facsimile copy of a letter that George Washington wrote to Major

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Talmadge, on September 24. The need for, and the requirements of, good intelligence work.

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And I may as well, confess to you, that my own ancestor, Katie Montgomery, was a spy in George

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Washington's army, and carried messages in her clothing across the enemy lines. And that,

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as it happens, is my claim to expertise. But as fascinated as Americans are by spying,

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they are often skeptical as well, and want to distance themselves from the harsher aspects,

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of intelligence. My good friend. General Vernon Halters, former Deputy Director of the CIA,

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and now our Ambassador to the United Nations, describes the view many have of the whole intelligence

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business. Americans, he's here observed, have always had an ambivalent attitude toward intelligence.

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When they feel threatened, they want a lot of it, and when they don't, they tend to regard the whole

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thing as somewhat immoral. I think his comments, are right on the mark. My impression is that most

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Americans, at this time, want a lot of intelligence. And today, I would like to tell you why, and in what

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ways, spying has never been more important to our country. It is important in providing intelligence

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for our, of particular concern just now, is the situation in the Persian Gulf. A situation made

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even more volatile by the recent incident involving the Iranian Airbus. We are now, and have been,

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providing daily tactical intelligence support to naval forces operating with the US Central Command.

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Our support has included reports on Iranian anti-ship cruise missile sites, naval bases,

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airfields, and coastal defense installations. As a result, our forces have been able to successfully

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carry out US foreign policy. Protecting our own security interests and those of our allies.

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I might add that we are encouraged by Iran's announcement, earlier this week, that it will accept

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UN Security Council Resolution 598. Which calls for a ceasefire in the Iran-Iraq war. While we welcome

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this development, the animosities built up over eight years of bitter conflict, will not suddenly

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disappear. There is no doubt that a difficult process lies ahead in getting both, Iran and Iraq,

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to comply fully with the terms of a ceasefire agreement. And subsequently work toward, a peace treaty,

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I recently returned from a two-week trip to Western Europe, where I met with representatives of our armed

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forces and NATO allies. This trip reinforced for me, the immense value of our intelligence support.

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Not only within the US intelligence and policy community. But within NATO. Visits I have made

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within our own country have also brought home the importance of intelligence to our national defense.

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Some of you may have had an opportunity to visit NRAD, one of our principal early warning systems.

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NRAD is located, as you know, in the Cheyenne Mountains in Colorado Springs.

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My good friend, Bobby Inman urged me to visit NRAD soon after I became the director of the CIA.

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A day that can't help but make one aware of the importance of early warnings in terms of survival.

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We must now think in terms of minutes rather than hours or days. I have visited other defense

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facilities, including the Strategic Air Command in Omaha, and St. Clint in Norfolk. There is no question

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that intelligence is extremely important to the commanders and staffs of these vital military

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installations. At St. Clint, I spent some time on the aircraft carrier, John F. Kennedy, and on a

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nuclear submarine. Things are sure different than they were when I served as a lieutenant, in the US

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Navy. I could not then have imagined either the military or the technical capabilities that we have

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today. Our nation's satellites for example, have the ability to identify B-52s, garrison forces,

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or even a group of people like those gathered around this lake. And nowhere has the importance

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of our technical capabilities been more evident than in our work in the area of arms control.

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The CIA was a major player in the conclusion of the INF Treaty, the first treaty in history that

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calls for the destruction of an entire class of weapons. We provided expertise to the US negotiating

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team in Geneva, and furnished both Congress and their administration with critical information

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throughout the ratification process. Our analysts have played a major role in the overall verification

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effort. And we have given analytical and training support to those who are participating in on-site

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inspections. But we know that the INF Treaty is only the beginning. Arms control issues verification

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and the monitoring will continue to drive the resources of the agency, well into the next

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decade, and probably the next century. Through timely intelligence collection and analysis,

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the agency has provided advanced warning of weapons and weapons systems acquired throughout

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the world. For example, we gave advance warning of the most recent Iraqi offensives in the Iran-Iraq

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war, correctly analysing the increased reliance on chemical weapons. We also discovered the sale

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and impending shipment of Chinese-made ballistic missiles to Saudi Arabia. By piecing together

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evidence from both China and Saudi Arabia, we were able to, tell the complete story, months

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before any of the missiles became operational. Our on-the-scene intelligence support in the

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Persian Gulf has drawn high praise from US naval commanders. While much of our intelligence

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comes from technical means, we cannot do without information, from human sources. In fact, providing

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insights into human motivation has always been what makes intelligence as much art, as craft,

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and it demands an unusual amount of aplomb. I have seen the marvellous devices that can be used in the

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interests of tradecraft, but I also know that nothing is foolproof. I was recently told of a young

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officer who was meeting his agent in the dark of night in a strange land, somewhere east of Suez.

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The two were driving through 105 degree temperature something like Washington this summer, and the

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officer was wearing a considerable head of hair, which belonged to him, and a moustache, which belonged

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to us. This night, as they drove steadily through the muggy air, our man felt the perspiration running off

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his brow, dom his face. And over his lip. Finally, our moustache dropped in his lap. Unperturbed,

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our man drove on. His agent, in a calm, unhurried manner noted, Sir, your moustache has fallen off.

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The case officer made the only decision a man of savoir-faire could make a brief aha.

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So it has. He reached onto his lap, picked up the moustache, and put it in his breast pocket.

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We may have satellites that circle the globe, but the secret of ineffective spirit gum still eludes us.

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But, we have had a number of major successes this year. Next one page is in document, denied.

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My point at the outset, was that spying has never been of more importance to our country.

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But I want to emphasize that how the CIA carries out its responsibilities is of equal importance to

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our country. We must maintain absolute fidelity to our constitution, to our laws, and our rules,

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rules imposed to ensure our citizens that, we are accountable. I do not think that the CIA is

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exempt from this principle. In fact, I believe that it is the key to public acceptance of our

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vitally necessary work. Under law it is our duty to notify the intelligence committees of the House

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and Senate in a timely fashion of any significant intelligence activities. This includes any

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activities requiring a presidential finding. Just what constitutes timely is a matter of concern

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both to Congress and to the administration. The House is considered, and the Senate has approved,

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legislation that would, require notification of a special activity to Congress within 48 hours

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of a presidential finding. I anticipate that the President will veto this legislation.

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There is a serious constitutional question here. This is not my problem to argue. But it exists

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nonetheless. Additionally, some allowance must be made for that rare case, where limited delay in

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Congressional notification is critical, to preserve the absolute security of an operation, when, for

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example, lives are at stake, and third-country sources, which supply the information and provide

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the opportunity to save lives, refuse to allow us to convey that information to the Congress.

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The President, in his National Security Decision Directive, provides that if he does not notify

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Congress within 48 hours, he must review the decision, every 10 days. In my experience on the bench,

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and in the exercise of discretion, I think that the emphasis on review is key. If you exercise

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discretion, you don't exercise it, without review. If you have a duty to exercise discretion, you must

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review your decision. And in this case, the President has agreed that his decision will be reviewed every

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10 days, until Congress can be notified. But the CIA's relationship with Congress on this and other

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issues is crucial. Because, I know of the need to be absolutely candid with Congress, and the

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responsibility that intelligence professionals have to protect sources and methods. I have

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established guidelines governing our dealings with Congress, and I have made it absolutely clear that

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in dealing with Congress there is no excuse for deception. We will not give half-answers or around-the-corner

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answers to Congress. If there is a problem, we will say there is a problem, and that we cannot answer

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the question at this time. But we will not leave the Congress feeling that in some way, we have been

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disingenuous with them. I think tension between Congress and their executive branch will always

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exist, but we will be able to work it out if there is an element of trust in the honesty of the

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statements we make. The amount of information we provide to Congress is substantial. Fifteen years ago

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we gave 175 briefings to Congress. Last year alone, we gave over 1,000 briefings to the House and Senate

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on a variety of topics. These topics included arms control issues, international terrorism, narcotics

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trafficking even the spread of AIDS in Africa. In the last year the CIA sent over 5,000 intelligence

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reports to Congress. During the next several months we will continue to provide policymakers and Congress

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with intelligence on critical issues facing us. Me will be monitoring and reporting on the Soviet

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withdrawal from Afghanistan and its effects on that country. We will also be providing insight

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into what Gorbachev's emphasis on new thinking implies for his own country, and for the world.

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We anticipate greater instability ahead in both democratic, and authoritarian countries, and will

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be looking at political changes that could affect U.S. interests. In the Far East for example,

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the stability of the Philippines continues to be a major concern. And, in South Korea, which

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is troubled by internal dissent and the threat of hostile action from the North, we will be

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even more watchful as the Olympic Games in Seoul approach. In the Persian Gulf, we expect political

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infighting to intensify when Khomeini dies. We cannot anticipate all the demands that will

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be made of us, no matter how, or where, we serve. One day, the leader of the military band

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at a major U.S. international command called CIA headquarters to see whether the agency had

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the score of the national anthem of a small African country. One of the senior leaders

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from that country was paying the command a visit. Sure enough, our library had the national anthem,

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and told the band leader so. There was a long pause on the telephone while the band leader

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was presumably thinking how he would get the necessary music. Finally, he blurted out, could you sing

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it to me? Please. I don't know how well the researcher was able to sing the anthem, but I know we answered

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the request, and given the quality of the people I've seen during my 14 months at the CIA, it doesn't

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surprise me that we were able to respond. Our machines, our systems, and our satellites are the

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wonders of the age. But, intelligence is pre-eminently an affair of people. It is the caliber of the men

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and women of American intelligence, their creativity, determination, brilliance, and courage, that

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spells the difference between success and failure. I hope that we continue to attract those best

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suited to carry out our mission. People who are risk-takers. But not risk-seekers. People, who are

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dedicated and responsive to our law and discipline. People who understand and play by the rules. People

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to whom fame and fortune is not particularly a necessary part of their life. But who can find in our

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work an avenue to pursue their highest aspirations for a safer and a better world. With such people,

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we can continue to provide the intelligence that policymakers need to make wise decisions,

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in the interests of our country. Providing information to make wise decisions is a simple

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answer to the question, why spy? A more eloquent answer was given by Sir William Stevenson, an old

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friend, in the introduction of a book written about him some years ago. In the introduction to,

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a man called Intrepid, Sir William wrote, perhaps a day will dawn when tyrants can no longer threaten

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the liberty of any people. When the function of all nations, however, varied their ideologies,

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will be to enhance life, not to control it. If such a condition is possible, it is in a future too far

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distant to foresee. Until that safer, better day, the democracies will avoid disaster,

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and possible total destruction, only by maintaining their defenses, among the increasingly intricate

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arsenals across the world. Intelligence is an essential weapon. Perhaps the most important,

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but it is, being secret, the most dangerous. Safeguards to prevent its abuse must be devised,

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revised, and rigidly applied. But as in all enterprise, the character and wisdom of those to whom it

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is entrusted will be decisive. In the integrity, of that guardianship, lies the hope of free people

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to endure, and, prevail. The preceding audio representation of William H. Webster's July 22,

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1988, Lakeside Talk Given at the Bohemian Grove, is presented by Resist the Grove. Follow us at

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