Historical Newspapers of South Carolina

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101E (Bamecoci! State Department teaches workers how to prevent further security lapses by George Gedda Associated Press WASHINGTON — Paper shredders, State Department employees are told, must trim classified documents down to slices no larger than 1/32 inches by 1/2 inches. Disposal can also be achieved, they are advised, with machines that that can “pulverize” secrets into powder. Safes storing sensitive materials must weigh at least 500 pounds, wliich are too heavy to be carted off. James D. Tromatter makes these points tirelessly in briefing after brief ing as part of the State Department’s in tensified efforts to keep employees se curity conscious. Since May, about 9,000 employees liave heard the message from the amiable, yet no-nonsense Tromatter, who gave up his Army career four years ago to become a security expert at the State Department. Attendance is mandatory. Secretary of State Madeleine Al bright’s goal is to end a string of securi ty lapses that have plagued the depart ment, the result, many in Congress believe, of a cillture that is inattentive to securi ty requirements. There was the case of the Russian spy operation a year ago that involved use of a sopliisticated eavesdropping device plant ed in a seventh-floor conference room. The Russian who got caught listening to the device outside the State Department was sent packing last December. Who planted the device remains a mystery. More significant is the case of the lap top computer with highly classified in formation that disappeared around Feb. 1 from a conference room in the Bureau of Intelligence and Research. It was al leged to have contained highly classified information about amis proliferation is sues and about sources and methods of U.S. intelligence collection. The lapses left Albright feeling “hu miliated.” At a meeting of State De partment employees, she dispensed with the ambiguities so common to her trade. “I don’t care how skilled you are as a diplomat, how brilliant you may be at meetings, or how creative you are as an administrator, if you are not a professional about security, you are a Mure,” she said. Less than three weeks later, Tromatter began his series of briefings, which con sist laigely of reminders: Top secret ma terial is always covered by a special sheet that identifies it as such. Use red “secret” labels on computer disks that have been used on classified computers. To hand carry top secret information requires a top secret clearance. Copying of top secret materials must be carried out by a “top secret control olficer.” Secret and confidential materi als can only be copied on designated ma chines. Since the briefings began, Tro matter says reports of infiactions are down by about 20 percent. ‘I don’t care how skilled you are as a diplomat, how brilliant you may be at meetings, or how cre ative you are as an administrator, if you are not a professional about security, you are a failure.' Madeline Albright Secretary of State Tromatter, a native of Williamsbuig, Va., says the most common security in fraction involves leaving a classified doc ument uncovered on a desk. He says that of the various threats the Department faces, none is greater than what he calls “sigint,” or signals intelli gence. It involves the intercept by unau thorized persons of classified materials sent by facsimile or telephone. The security lapses did not go un noticed on Capitol Hill. “It is obvious that the Department lacks a professional environment that is sensitive to security concerns,” said House International Relations Committee chair man Benjamin Gilman, R-N.Y. “There is not sufficient awareness, or sufficient attention, to security” at the Department, said Porter Goss, R-Fl., chair man of the House Intelligence Commit tee. It hasn’t been easy for Albright to overcome these perceptions. Not long after her speech to Department employ ees, Sen. Rod Grams, R-Minn., a mem her of the Senate Foreign Relations Com mittee, complained that six foreign ser vice officers nominated for ambassador ships had committed a total of 62 security infractions, including one with 22 on his record. To Grams, it seemed hard to recon cile Albright’s warnings about the need for vigilance with coveted promotions for people not always attentive to secu rity issues. Grams held up the nominations for months, but then allowed them to clear* the Senate after extracting further con cessions from the State Department on employee accountability for infractions. Congress kept up the heat on the ad ministration this week by approving a bill that subjects government employees to up to three years in prison for willfully disclosing nearly any classified informa tion. The bill was passed despite warnings that it gives the government a blank check to criminalize any leaking it does not like. U.S. representatives quarreling over record $40 billion education budget by Anjetta McQueen Associated Press WASHINGTON — The partisan bat tle over how to spend a record $40 billion education budget heated up Thurs day with President Clinton making a trip to Capitol Hill to boost the Democrat ic plan and House Republicans portrayiiig the administration as throwing money at unproven programs. At a rally featuring schoolcltildren from North Carolina, Republican leaders stud the White House declined offers of $3 billion to $6 billion more for education in exchange for giving schools more leeway on spending. Clinton and the Democrats have in sisted money be set aside to hire teachers and build schools. They met increased resistance Thursday. “I don’t know that we can resolve this issue in this Congress,” said Rep. Jolin Porter, R-Ill., chaimian of tire House Appropriations subcommittee that over sees education spending. “This might have to be sorted out by the American people.” With vetoes and his party’s popu larity ai the issue, Clinton lias succeeded in recent years in forcing Republicans to compromise on new teachers and school construction. On Thursday, less than three weeks before national elec tions, he prepared to rally around De mocrats who are faced with cutting a deal with Republicans who have won increased public approval on the issue. “It’s a fight with no fighters,” Senate Minority Leader Tom Daschle, D-S.D., said Wednesday, complaining that Republicans are unwilling to dis cuss compromise. John Czwartacki, spokesman for Senate Majority Leader Trent Lott, R Miss., said Clinton and the Democrats have been unwilling to deal: “ Wfe could have been out of here Oct. 1.” Black Democrats are accusing their own party leaders of not putting enough attention on improving education for the poor. The education bucket is part of three spending bills being negotiated by law makers and the White House for the budget year that began Oct. 1. Leaders planned a fourth temporary spending bill Thursday to keep agencies going. Democrats are battling for specific money to hire new teachers and repair crumbling schools. Republicans still want to give states the option of spending the money on other programs such as spe cial education and reading lessons. Clinton and the Democrats could use a showdown to brand the GOP as the foe of popular priorities such as new teachers and after-school programs. Re publicans could use a low-key com promise over a big public fight that re minds voters the GOP once advocated abolishing the Education Department. “The Republican leadership is run ning out the clock,” said Joel Packer, a lobbyist for the National Education As sociation teachers union. Bickering over education is hardly new. Last year’s education budget passed only after a deal dial allowed new mon ey earmarked for teachers but gave states leeway to spend some money on other programs. A key federal education law, parts of which expired last year, has not been renewed. The last major education bill Clin ton signed, in 1999„expanded an ex perimental program that exempts states from some federal rules if the states show improved learning by children. Congress will have to answer for the lack of progress, said Rep. Major Owens, D-N.Y.. a member of the Congressional Black Caucus, which wants the debate focused on the poor est schools. “We are trying to do a get-out-the vote campaign, and we are empty-hand ed on education,” he said. “In the endgame, very unusual things happen. It’s time for them to happen in our fa vor.” Greenspan says nation’s good economy might be affected by rising energy costs ■ High oil prices could still cause surge in inflation BY JEANNINE AVERSA Associated Press WASHINGTON — Federal Reserve Chairman Alan Greenspan said policy makers will keep watch on surging en ergy prices to make sure they don’t spoi the nation’s economic good times. On Wall Street Thursday, stocks were recovering some of Wednesday’s losses By late morning, the Dow Jones indus trial average had gained 88 points and th< Nasdaq index added 172. While the recent surge in oil prices wliich ltit a 10-year liigli of $37.80 in Sep tember, hits not produced higher overal inflation, Greenspan cautioned that risk remain, especially given the “politica difficulties” in the Middle East. “Even though the intensity of oil con sumption is markedly below where it wa 30 years ago, it still has the potential ti alter the forces governing economic growth in the United States,” Greenspai said Thursday in remarks to a monetar policy conference. “Policy-makers will need to be oi the alert for oil-driven, indeed energy driven, risks to our expansion,” Greenspan said. When crude-oil prices spiked last month, President Clinton announced he would tap the government’s emer gency petroleum reserve to help offset soaring prices. November crude futures, which had pulled back nearly 10 percent this week following a suige sparked by Mideast violence, gained 49 cents to $33.48 a bar rel in trading on the New York Mercan tile Exchange Wednesday. Greenspan said that in the short run, oil prices are heavily influenced by in ventory levels. Those levels have dropped significantly since decisions by the Or ganization of the Petroleum Exporting Countries in 1998 and 1999 to cut pro duction by more than 3 million barrels a day. Since that time, OPEC has boosted 1 production to what are now record lev ' els, but Greenspan said hoarding by wor 1 ried distributors and consumers may be limiting the impact of the increased pro duction. ’ “In the short run, the price of oil, 1 as that of all commodities, inevitably is influenced importantly by inventory lev 1 els, especially when stocks become crit ically short,” Greenspan said. Energy prices shot up 3.8 percent 1 in September, the biggest advance since June. In the first nine months of the year, gasoline prices rose at an annual rate of 22.4 percent mid heating-oil costs at an annual rate of 49.4 percent. Even with these increases, Greenspan noted, “To date, die spillover from the surge in oil prices has been modest.” The Federal Reserve has raised in terest rates six times since June 1999 to slow the economy and stave off inflation. Greenspan did not directly discuss the fu ture course of interest-rate policy in Thurs day’s speech. The Fed on Oct. 3 passed up the chance to raise rates for a seventh time, but cautioned that the increase in ener gy prices “poses a risk of raising inflation expectations.” In a separate speech, Fed board mem ber Laurence Meyer said Thursday that soaring oil prices, while contributing to short-term inflationary pressures, are like ly to decline by spring. “If the expectations in futures prices for oil prove correct, we may soon be treated to an extended period of decline in oil prices,” Meyer said. Despite higher energy prices, con sumer spending has remained firm, Greenspan said in his remarks. General ly, when consumers have to shell out more for more expensive gasoline, heat ing oil and other energy products, they have less to spend on other items. The U.S. economy is in its longest ever streak of uninterrupted growth, with unemployment at a 30-year low and in flation largely in check. Even before last week’s escalating vi olence in the Middle East, oil price pres sures had been strong, Greenspan said. “This largely owed to the possibili ty of a politically driven removal of a sig nificant part of Iraq’s 2.5 million to 3 mil lion barrels a day from global markets at a time when there exists so little avail able world excess capacity to replace it,” Greenspan explained. Greenspan also said growing federal budget surpluses have been an important source of national savings, reducing up ward pressure on long-tenn interest rates. He wondered whether that would continue. “I believe most of us harbor doubts about whether the dynamics of the po litical process, some of which have been on display in the current budgetary de liberations, will allow the surpluses to continue to grow,”he said. Greenspan also noted the strong suige in productivity growth, which has helped to keep inflation in check. But, as in the past, he cautioned that the strong pro ductivity growth rates experienced in re cent years inevitably will slow. American businessman accused of spying in Russia losing hope by Nick Wadhams Associated Press MOSCOW — An American busi nessman accused of spying in Russia has lost hope he’ll be given a fair trial and probably will limit his testimony to a prepared statement, his lawyer said Thursday. Edmond Pope, discouraged with the first court session held Wednesday, may read a 40-page statement he has written and then keep silent for the rest of the trial in hopes of getting it over with quickly. “I think he wants this whole night mare to end as quickly as possible, and when there is a verdict, to then plan his next move,” Pope’s lawyer Pavel As takhov told The Associated Press. Pope, a retired U.S. Navy officer from State College, Pa., was arrested April 3 by Russia’s Federal Security Service on charges that he tried to buy plans for a high-speed Russian tor pedo. He faces up to 20 years in prison _• 11 WIK1VIVU. The court turned down several de fense requests Wednesday. It refused Pope’s appeal to replace his Federal Se curity Service translator with an inde pendent one or give him more time to read his indictment. Astakhov said Pope hadn’t been able to study the indict ment thoroughly, and said Pope told him the document was so poorly trans lated it was incomprehensible in places. “How can you prepare for the court trial when you don’t know exactly what you are indicted for?” Astakhov said. Pope says he’s innocent, and the United States has called repeatedly for his release from Moscow’s Lefortovo prison. Russian officials have accused U.S. officials of meddling in their legal system. Astakhov said Pope was also furi ous that his Russian associate, a uni versity professor named Anatoly Babkin, was not on the list of prosecution wit nesses. The defense has asked that Babkin testify because he helped Pope in his search for unclassified naval equip ment designs. “We hoped that the court would be fair, but after it made these decisions, Edmond realized prosecutors wouldn’t have to prove his guilt, but he would have to prove his innocence,” Astakhov said. Pope will make a final decision on whether to testify by Friday, when the trial is set to resume and Judge Nina Barkina will read the 26-page indictment against him. Efe may be counting on the good will of Russian President Vladimir Putin, who hinted on CNN’s Larry King Live last month that Pope could be relumed to thp TInitpH ^tutpc pvpn if ronvirt ed. The defense’s one victory on Wednesday was that Barkina agreed to a medical examination to determine whether Pope, who has suffered from a rare form of bone cancer, is fit to stand trial. It still wasn’t known if the judge would agree to Pope’s request that he be seen by an American doctor. Russian doctors already have de cided that Pope is fit to stand trial. As takhov said his client was losing weight and had vision trouble. “What can I say, he’s a sick man in prison, and in my opinion, he’s get ting sicker,” Astakhov said! Six other prisoners are in Pope’s cell at Lefortovo, and Pope is suffering from secondhand cigarette smoke, he said. Pope worked for the Applied Re search Laboratory at Pennsylvania State University. He later founded CERF Technologies International, a compa ny specializing in studying foreign mar itime equipment, and traveled to Rus sia dozens of times. Pope’s supporters and family say he was seeking information on an un derwater propulsion system that is at least 10 years old and has already been sold abroad. Independent counsel issues final report on travel office firings by Pete Yost Associated Press WASHINGTON — Independent Counsel Robert Ray challenged Hillary Rodham Clinton’s testimony and crit icized “uncooperative” presidential aides in a final report on the 7-year-old controversy over mass dismissals in the White House travel office. The re port became an instant issue in the first lady’s Senate race in New York. Ray concluded that Clinton gave “factually false” testimony, but he de cided not to prosecute her because he could not prove she intended to de ceive when she denied having a role in the May 1993 purge of the travel of fice. Ray said Clinton might not have even known her contacts with presi dential aides had instigated the firings. Bill Powers, chairman of the New York state Republican Party, said the prosecutor’s report “once again makes us question” Clinton’s believ ability. “We believe that character counts in public service,” said Clinton’s Re publican opponent in the Nov. 7 elec • Inn Dnn Diol/ T nun Clinton’s lawyer, David Kendall, called the prosecutor’s conclusions about factually inaccurate testimony “highly unfair and misleading.” The fi nal report “recognizes she may not have even been aware of any influence she may have had on the firing deci sion,” Kendall wrote. Also, the White House noted Ray’s report found evidence of financial ir regularities at the time of the firings in side the travel office, which handles travel arrangements for the White House press corps. “The report recognizes thai Mrs. Clinton was rightfully concerned about the financial improprieties in the trav el office,” White House press secretary Jake Siewert said Wednesday. Outside auditors in 1993 identified at least $ 18,200 in missing checks and improperly recorded or unrecorded petty cash transactions in the travel of fice. Locked in a tight race for the senate, Mrs. Clinton dismissed die find ngs during a campaign stop in Syra :use, N.Y. “Most New Yorkers and Americans have made up their minds ibout this,” she said. Ray singled out a number of for mer White House aides for engaging in “serious resistance” to investigators’ questions about Mrs. Clinton’s part in the firings, declaring that “witnesses were uncooperative in this office’s investigation.” Ray cited fomier White House cliief of staff Mack McLarty, ex-deputy chief of staff Harold Ickes, Lisa Caputo, Pat sy Thomasson and Jeff Eller. Caputo is Mrs. Clinton’s fomier press secre tary, Thomasson is a fomier deputy of David Whtkins, who fired the travel of fice employees, and Eller is a fomier deputy press secretary. McLarty insisted he had been “completely forthcoming and truthful at all times” with investigators, who asserted that McLarty had given varying accounts of a conversaUon with Wr^ Plintnn Ickes told prosecutors he had no memory of a two-hour meeting eight days before the travel office firings with Hollywood producer Harry Thomason, a key figure in the controversy. At the time, Ickes was a private attorney. Ickes told Ray’s office he had “no idea” where the meeting with Thoma son was held, that he did not “recall who was there, if anyone,” what city it was held in or what was discussed. Prosecutors said Eller claimed a lack of memory more than 200 times in less than two hours of grand jury tes timony. The continuing White House e mail controversy also played a role in Ray’s final report, with the prosecutoi saying computer messages receiver in June this year could have been usee to refresh the recollection of Eller hat they been available during the inves tigation. Because of a computer prob lem that the White House failed to dis close, thousands of e-mails were nevei turned over to investigators.