Jerusalem: No intelligence assets on American soil
The FBI is investigating whether a mid-level Pentagon official in the Office of the Secretary of Defense passed classified material regarding internal policy deliberations on Iran to two staffers at the American Israel Public Affairs Committee (AIPAC), who in turn provided the information to Israel.
Channel 2 TV quoted an official in the Prime Minister's Office Saturday night as saying that the government was not aware of the incident, and denied that Israel has any intelligence agents working in the US. "We are not aware of any Israeli spies in the United States. Israel is not employing any intelligence assets on American soil," the official was quoted as saying.
CBS Evening News led its broadcast Friday night saying the FBI has a "full-fledged espionage investigation underway" and that the FBI believes it has "solid evidence" that a "suspected mole" in the Pentagon "supplied Israel with classified materials that include secret White House policy deliberations on Iran."
Israel immediately denied the espionage allegation. "We deny these allegations. The United States is Israel's most cherished friend and ally. We have a strong, ongoing, working relationship at all levels and in no way would Israel do anything to impair this relationship," said David Siegel, spokesman for the Israeli embassy in Washington.
Earlier, the embassy described the allegations as "false and outrageous."
AIPAC, the leading pro-Israel lobby, also denied any wrongdoing. "Any allegation of criminal conduct by AIPAC or our employees is false and baseless. Neither AIPAC nor any of its employees has violated any laws or rules, nor has AIPAC or its employees ever received information they believed was secret or classified," the group said in a statement.
"AIPAC is cooperating fully with the governmental authorities. It has provided documents and information to the government and has made staff available for interviews."
Israel's defense establishment said it conducted a thorough examination over the weekend with all security and intelligence bodies to verify the veracity of reports that a Pentagon employee passed on secrets to Israel.
"The examination revealed what we expected," said a senior defense official. "There are no sanctioned espionage operations going on against the United States. There is no truth to these reports."
The official, who spoke to The Jerusalem Post on condition of anonymity, said that the entire story was dubious from the outset. He noted that Israel and the United States are very close strategic allies and there is enormous sharing of intelligence between the two countries.
"We have very good, excellent working relations with the Americans, and we are very discreet about it. There is no need to operate (spies) in the Pentagon or anywhere else in the United States." The senior official said. "Also, it wouldn't be in our interest to take actions that would jeopardize these relations that we've built up over the years," he added.
The official added that they were speaking in the name of the Defense establishment, and that any official statement from the government needed to come from the prime minister's office or the foreign ministry.
The investigation has been ongoing for a year, according to several news reports. And the Pentagon, in a statement issued late Friday, said it has been cooperating with the Department of Justice on this matter "for an extended period of time."
"It is the D.O.D (Department of Defense's) understanding that the investigation within the D.O.D is limited in its scope," it said.
The statement went on to play down the official's significance as news organizations speculated that Israel somehow unduly influenced US policy toward Iran, or even Iraq, through the alleged mole.
The official, identified by sources as Larry Franklin, "did not really work on Iraq," even though he works in the Pentagon's Near East and South Asia (NESA) Bureau, according to an American source. Franklin, a colonel in the US Air Force Reserve, served in the past as an attache at the US embassy in Israel, one source told The Jerusalem Post.
That NESA bureau is overseen by William Luti, the deputy undersecretary of defense for Near East and South Asia Affairs. And Luti reports to Undersecretary of Defense for Policy Douglas Feith.
"The investigation involves a single individual at D.O.D. at the desk officer level, who was not in a position to have significant influence over U.S. policy. Nor could a foreign power be in a position to influence U.S. policy through this individual. To the best of D.O.D's knowledge, the investigation does not target any other D.O.D. officials," the Pentagon said.
The American source said Friday of the allegations about Franklin: "He was irresponsible probably in mishandling classified information. That doesn't mean he was spying for Israel."
Some news reports described what was given to AIPAC as "a sensitive report about American policy toward Iran." CBS described it as a presidential directive on Iran that was in the draft phase.
CBS said the FBI investigation involved wiretaps, undercover surveillance and photography, that "document the passing of classified information form the mole to the men at AIPAC, and on to the Israelis."
No one has yet be detained, though news reports said an arrest could be made as early as next week. The Washington Post reported, however, that "it is not yet clear whether the case will rise to the level of espionage or end up involving lesser charges such as improper disclosure or mishandling of classified information."
Those kinds of investigations into the mishandling of classified information are routine in Washington. The most recent, high-profile incident has been the investigation into whether Sandy Berger, President Clinton's former national security adviser, took classified documents on that administration's terrorism policy rather than turning them over to the commission investigation the September 11th attacks.
But the CBS report unleashed more damning comparisons. News stories recalled the case of Jonathan Pollard, the former US naval intelligence officer who was convicted of giving top-secret documents to Israel over an extended period of time in the 1980s. Pollard is serving a life sentence.
The Pollard affair led to questioning of whether some American Jews have a dual loyalty to Israel and has had a lasting impact on American Jews seeking jobs in sensitive positions in US government.
Unlike Pollard, however, Franklin is not Jewish.