Defense and Security

Homeland Security

  • Climate Change
    Debating the Links Between Climate Change and National Defense
    I’m a big fan of Bruno Tertrais, a French scholar (and a friend) whose work on nuclear security I’ve long respected. In the new issue of The Washington Quarterly, Bruno stretches his horizons to pronounce judgment on widespread claims that climate change will drive armed conflict in the coming century. His essay, “The Climate Wars Myth” (PDF), contains some important cautions to those who too glibly assert that climate change is a big security problem, and is well worth reading. It goes too far, though, in dismissing some of the real concerns that people have. Let me start with the overstreches, which are disappointingly frequent. Bruno writes early on that “history shows that ‘warm’ periods are more peaceful than ‘cold’ ones”, which he explains by noting that “all things being equal, a colder climate [historically] meant reduced crops, more famine and instability.” But projections of future climate change – which go beyond temperature increases – anticipate reduced crops. By his logic, this should lead to more conflict, not less. Bruno also criticizes arguments about the relationship between extreme events and conflict by pointing out that projections of increases in extreme weather depend on models. But this is no reason, in itself, for defense planners to not be concerned. Projections that increased proliferation of nuclear weapons will result in greater risks of catastrophic conflict are also based on models, but that is no reason for strategists to not take that possibility seriously. Simiarly, Bruno focuses on median estimates of sea level rise, and then dismisses the possibility that sea level rise could become a severe problem. Yet defense planners cannot simply look at the most likely futures – they must also plan for the most problematic ones. I suspect these sorts of flaws will turn off many people. That would be a shame, since the essay makes a series of important points. Some are just tidbits that aren’t clearly of huge consequence. Bruno notes early on, for example, that scarcity does not always lead to conflict, and that the reverse can happen too: as he writes, “at the borther of Kenya and Somalia, conflicts are more numerous when the resource (pastures) is abundant”. This makes sense: resource wealth can fuel aggression and can also be a target for it. More importantly, he also observes, I think correctly, that too many projections of the security consequences of climate change are made in a political and security vacuum. He trains particular attention on predictions of conflict in a melting Arctic, arguing that “the attitude of all neighboring states regarding this region, including Russia, reflects a clear preference for settling possible disputes in accordance with accepted international law”. I might actually go further than he does. The United States and the Soviet Union managed to avoid direct armed conflict for four decades when the future of the world was at stake. It is not clear why they would have a more difficult time managing conflict over uncertain resources of oil and gas. It’s the essay’s final point, though, that stikes the strongest chord with me. Bruno asks a big question: “Is Climate Change Even Relevant to Defense Planning?”. This is not the same as asking whether climate change is a defense problem: as the essay acknowledges, “it is not unreasonable to state that climate change may be a ‘threat multiplier’,” as so many do. But for that to become relevant to defense planning at a significant level, it must lead to meaningful changes in procurement, doctrine, strategy, or something similarly important. It is not clear that it does in most cases. The expectation that there will be more migrants in (and from) Africa, victims of natural disasters in Southeast Asia, or tensions over water in a host of different regions, may not ultimately make much of a difference to acquisition plans, troop deployments, or the like. It is quiet possible to have a significant defense problem that ought to have limited impact, at least in the near term, on defense planning. Climate change may be such a case.
  • Homeland Security
    Extending Patriot Act Powers
    Congress passed a short-term extension for three surveillance provisions of the Patriot Act to allow for more debate, which CFR’s Matthew Waxman says will likely focus on tightening restrictions and oversight.
  • Terrorism and Counterterrorism
    Guest Post: AQAP and Yemen
    Members of Yemen’s U.S-trained counter-terrorism force raid a house during field training near Sanaa I’ve been busy so I enlisted Marisa Porges to guest post today.  Marisa is a former international affairs fellow at CFR. Before her turn at the Council, Marisa worked at DoD and Treasury on counter-terrorism issues.  Before civilian life, she was a naval aviator, flying EA-6Bs off of carrier decks.  Extremely cool.  Enjoy… I originally intended to hijack Steven’s blog to highlight the statement Secretary of Defense Robert Gates made last week, when he noted that America’s “biggest tools, particularly with respect to Yemen, are the partnership capacity of the Yemenis themselves.” This description of Washington’s future efforts in Yemen as a partnership not just with Sana’a but with Yemenis is pivotal and worth repeating, again and again. I’ll dig further into that story the next time Steven leaves his computer unattended. Instead, I’ll focus on the three most important Al Qaeda in the Arabian Peninsula (AQAP) stories that came out over the weekend: The latest issue of AQAP’s online magazine, Inspire, was publicly released on Saturday – this time, with a cover declaring that October’s attempted bombing via cargo mail had the bargain price tag of $4,200. The glossy pages and color graphics were dedicated exclusively to the incident that AQAP named ‘Operation Hemorrhage.’ The special edition included details of how the group planned the attack and showed a photo of Charles Dickens’ Great Expectations, which AQ operatives reportedly tucked next to one bomb as testament to their high hopes for its impact. More important was AQAP’s description of their goals: 1. “[T]hat the packages pass through the latest security equipment.” - DONE 2. “[T]o spread of fear that would cause the West to invest billions of dollars in new security procedures.” – IN PROCESS 3. “[T]o cause maximum losses to the American economy. That is also the reason why we singled out the two U.S. air freight companies.” – LET’S    WAIT AND SEE We’ve seen this trend coming – Al Qaeda’s new focus on smaller scale attacks not necessarily aimed at massive casualties, but intending to have  larger secondary shocks, economically and psychologically. It aligns with recent concern for Mumbai-style terrorist attacks in Western Europe. On Friday, Saudi Prince Turki al-Faisal reportedly told an audience at Harvard’s Kennedy School that Yemen represented a direct security threat to Saudi Arabia. In his words, “[t]he situation in Yemen . . . is making it easy for terrorists to infiltrate into Saudi Arabia and operate actively there.” This concern is anything but new, though the public admission by senior Saudi officials is novel. Friday’s remark prompted an immediate    response by Yemeni officials who protested that Prince Turki must not have been speaking on behalf of his government. At least two Arabic outlets have begun raising concerns about a deteriorating relationship between Saudi and Yemeni security services. Though it’s still unclear where this is headed, it’s a situation worth Washington’s attention. The Saudi-Yemeni relationship, which includes a deep, complicated history between Riyadh and both Sana’a and Yemeni tribal leaders, is largely a mystery to outside operators – and, in truth, to many Saudis and Yemenis. But it’s clear that Saudi influence in Yemen far outweighs that of the United States or any other Western nation. Saudi involvement is critical for combating AQAP and tackling larger issues of Yemeni state failure. A troubled relationship between the two countries is the last thing anyone needs right now. (Photo Courtesy Reuters/Khaled Abdullah Ali Al Mahdi)
  • Human Rights
    For Obama, Vexing Detainee Decisions Loom
    The Obama administration, at first swift to move away from Bush-era detainee practices, has found itself struggling through a political and legal thicket about where and how to try those accused of war crimes.
  • Homeland Security
    Should Guantanamo Bay Be Closed?
    Four experts discuss how legal and political developments should affect the Obama administration’s promise to close the prison at Guantanamo Bay.
  • United States
    The Closing of the American Border
    In this book, CFR Senior Fellow Edward Alden examines the complicated interplay between the United States’ need for homeland security and economic openness in the wake of the September 11, 2001, terrorist attacks. Teaching notes by the author.
  • United States
    The Post 9/11 NYPD: Where Are We Now?
    Play
    JAMES D. ZIRIN: Good evening. Welcome to this evening's Council on Foreign Relations meeting with Police Commissioner Kelly. The meeting is on the record.When Henry Kissinger was introduced at a similar gathering, the moderator said, "Our guest really needs no introduction. You are all familiar with his many accomplishments." And Henry interrupted and said, "Please, tell them about my many accomplishments." (Laughter.)And mindful of this, I will speak briefly -- because if I don't, Ray will never forgive me -- on some of the accomplishments of our police commissioner, whose rich biography is presented in your program. Ray Kelly, like most visionaries, is a student of history, and history teaches us that the police commissioner of the city of New York is at least as important as the mayor. (Laughs.) No mayor -- he would deny this -- this part is off the record. (Laughter.) No mayor of the city of New York has ever gone on to higher office, but two police commissioners have gone on to higher office. Both are great favorites of mine. One was Thomas Murphy, who became a federal judge -- a great federal judge, and the other was Teddy Roosevelt, who, like our guest, instituted transforming changes in the NYPD. No police commissioner in our history has been as qualified as Ray Kelly at the time he took office. A 38-year veteran of the NYPD, he is the only person to hold his post for second separate tenure. During his term in office, crime is down 40 percent from 2001 levels. Homicides in particular are at the lowest levels since 1961 when they started keeping accurate records, and this has been no accident. Commissioner Kelly established a real-time crime center, a state-of-the-art facility that uses data mining to search millions of computer records and put investigative leads into the hands of investigators in the field. He designed a program called Operation Impact that drove crime down by concentrating police resources in high crime areas.Since 9/11, terrorist attacks have been nonexistent in New York, as we all know -- thank God -- but few know the dimensions of the horrific plots, which I'm sure he might tell you about, that have been thwarted by the elite counterterrorism units that Ray Kelly created. No wonder General Barry McCaffrey when he was here said from this very podium that the NYPD is the greatest security organization on the face of the earth today. This evening Commissioner Kelly will deliver some prepared remarks about the post-9/11 world. Then he and I will have a conversation, and finally he will take your questions.This session is on the record, as I said, and you are invited to turn your cell phones and BlackBerrys on -- but only after the meeting has concluded. (Laughter.)I'm honored to give you Police Commissioner Kelly. (Applause.)RAYMOND W. KELLY: Thank you, James. Jim and I go back a fairly long way. I do have some prepared remarks, and obviously Jim and I are going to sit up here and hopefully I'll be able to answer some questions. Not too long ago it would have been somewhat unlikely for a New York City police commissioner to appear before this forum, but this is my second visit to the council in four years. That's because since 2002 the New York City Police Department, obviously a municipal police agency, has adopted an intensely international focus, and we've reorganized the department to accommodate this world view. Now, almost seven and a half years ago we became the first police department in the county to develop our own counterterrorism bureau. We restructured our intelligence division and appointed leaders with exceptional credentials to guide our efforts. They include our Deputy Commissioner of Intelligence David Cohen, a 35-year veteran of the Central Intelligence Agency who lead both the operational and the analytical arms of the agency; Deputy Commissioner of Counterterrorism, Richard Falkenrath, a Harvard scholar and a former White House advisor on homeland security. And we're fortunate to have with us this evening Richard's predecessor, Mike Sheehan. Mike did a phenomenal job. I think Mike is still here. Mike, are you here? There he is right there. Mike was deputy commissioner of counterterrorism number two. Mike was a former ambassador for counterterrorism at the State Department, a member of the both Bush I and Clinton NSC staff and a West Point graduate, a former Green Beret. So just an outstanding individual and did an outstanding job with the department. So good to have you here tonight, Mike.Now, with the help of these and other experts, we are constantly studying events worldwide and assessing their implications for our city. We also have a lot to learn from institutions like the council. This past November we invited your president, Dr. Richard Haass, to address an audience of our senior executives at police headquarters. Richard was part of a distinguished speaker program that we created. Other participants have included former British Prime Minister Tony Blair, King Abdullah of Jordan, the emir of Qatar, former Secretary of State Henry Kissinger, Generals Barry McCaffrey and Bernard Trainor, and top international journalists such as George Packer and Peter Bergen. You might say that the NYPD has aspired to become a Council on Foreign Relations with guns. (Laughter.)Now, these discussions have greatly enhanced our understanding of the terrorist threats facing New York City, a threat that unfortunately shows no signs of abating. If you look at the intelligence -- and I can assure you we look at it closely every day -- you understand that al Qaeda is an extremely resilient organization. Despite repeated blows to its leadership by the U.S. military and expanded predator strikes, we see a continual replacement process of key operatives at the second and third tier level. Aided by a sanctuary in the FATA and the Northwest Territories of Pakistan, this has given al Qaeda a consistent ability to plot against the West. Obviously the most important leaders remain in place: Osama bin Laden and Ayman al-Zawahiri. We know from the recorded messages that they continue to make -- that their voices and directives are still being heard. They're being helped in this regard by an American spokesman, Adam Gadahn, who enables them to communicate directly with Western audiences. Al Qaeda also continues to build a web of alliances with likeminded groups around the globe, from the Taliban and Lashkar-i-Taiba in Pakistan, to Jemaah Islamiyah in Indonesia, to Salafists in Algeria, and Shabab (sp) in Somalia. From the intelligence we receive about these groups and looking at their public statements, we know that New York City remains the number one target of global Islamic terrorism. Many tend to forget, but since 9/11 we've been the subject of seven major plots here in New York. They include a plan to bring down the Brooklyn Bridge, to blow up financial institutions like the New York Stock Exchange and Citigroup headquarters, to smuggle explosive materials into Manhattan in shipping containers, and to release cyanide gas in the subway system. There was also the scheme by homegrown terrorists to bomb the subway station at Herald Square; another to blow up the path tunnels and retaining walls at Ground Zero, and a conspiracy to explode the jet fuel pipeline and supply tanks at John F. Kennedy Airport.Last summer we also saw the arrest of Aafia Siddiqui, an American-educated al Qaeda operative. She was found in Afghanistan carrying notes about a mass casualty attack and references to the Empire State Building, Wall Street and the Brooklyn Bridge. So for the police department's -- from our standpoint, we see no reason whatsoever to let our guard down. In addition to al Qaeda and its regional affiliates, which make up the first two tiers of the terrorist threat, we are very concerned about a dangerous third tier, which is homegrown terrorism. Indeed the majority of successful terrorist attacks in the West since September 11th have been carried out by individuals living in the countries that they targeted. In New York, we saw an example of this in the failed 2004 plot against Herald Square. It was conceived by two Brooklyn-based extremists outraged over the abuses at Abu Ghraib prison in Iraq. Given the challenge this threat presents, we've made an attempt to understand it more thoroughly. In 2007 two of our intelligence analysts undertook the study of the process of radicalization. Through a detailed analysis of case studies worldwide, they provided a number of valuable insights we shared with the public and other law enforcement agencies. We've taken the same highly analytical approach when it comes to our study of the different tactics terrorists use. We've compiled manuals on trends in improvised explosive devices and shared them with our bomb squad. We've prepared briefings on suicide bombings in Israel and truck bombs in Afghanistan and Iraq. We've devised methods to intercept a dirty bomb attack and to counter commando-style assaults like those that we saw in Mumbai and Lahore. Our counterterrorism strategies are multilayered and our alliances to defeat terror extend far and wide, from the five boroughs of Manhattan to cities around the world. We posted detectives and senior officers in 11 international cities where they partner with local police agencies, respond to the scene of terrorist events, and report back to our department on the methods used. We presently have officers stationed in Abu Dhabi; in Amman; in London; in Leon, France and Paris; in Madrid; in Montreal; in Toronto; in Singapore; in Tel Aviv; and in Dominican Republic. Their work is supplemented by a core of civilian intelligence analysts with expert knowledge of counterterrorism and foreign affairs. We recruited from within our ranks hundreds of native speakers of languages such as Arabic, Dari, Farsi, Urdu, Pashtun, Bengali. We tested them for fluency and reassigned them to counterterrorism duties. These include monitoring cyberspace for any potential threats to New York. Perhaps it is because of NYPD's reach into international arena that we are being targeted for computer hacking in much the same way the Pentagon has been with its plans for the Joint Strike Fighter. You may have seen the lead story in the Wall Street Journal yesterday concerning this. We've documented that computers with IP addresses in China, the Netherlands and other countries are engaged in unauthorized scanning of NYPD computers at the rate of 70,000 attempts a day, looking for opportunities to hack into our system. So far all attempts have failed due to a robust protective system that we constructed over the last seven years. Nevertheless, it's a threat that we must continue to pay close attention to every day. Our primary conduit for terrorist-related information about New York is a Joint Terrorism Task Force with the FBI. We bolstered our representation on the JTTF from 17 detectives on September 11th, 2001, to more than 120 today to a program called Operation Sentry. We work with almost 100 law enforcement agencies up and down the East Coast to generate leads and to generate information. Our partnership with the private sector gives us a network of additional eyes and ears. To our NYPD SHIELD Program -- a program that Mike Sheehan had a great deal to do in initiating -- we share news and information with 6,000 private security managers by way of a password-protected website, and then exclusive briefings at police headquarters. Under Operation Nexus, our detectives make thousands of visits to the kinds of businesses that might be exploited by terrorists, such as truck rental companies, scuba shops and fertilizer stores. Ideally we want to stop any threat in its earlier stages, but we have to be prepared if, God forbid, it already comes our way. Under our partnership with the Department of Homeland Security and 65 law enforcement agencies throughout our region, we're placing a ring of radiation detectors around the city to stop a nuclear or dirty bomb from entering the five boroughs. As part of our Lower Manhattan security initiatives, dozens of private companies have given us direct access to the live feeds from their surveillance cameras. Combined with our own cameras and license plate recognition readers, we're getting a detailed view of activity downtown. Every day, based on intelligence, we deploy large convoys of patrol cars with emergency lights and sirens on to make sudden, unannounced visits to iconic and sensitive locations -- always get a lot of questions about that phenomenon -- lots of radio cars moving around the city. We're constantly looking to disrupt surveillance, to let any would-be terrorist know that we're watching all the time and that we could be just about anywhere. We conduct daily unannounced inspections of subway trains, as well as track systems and tunnels. After the London transit system was bombed in 2005, we launched a new program to protect the subways. Passengers are informed in advance that large bags and backpacks are subject to search. To date, we've instituted over 65,000 checkpoints at stations across the city. Taken together, these measures have helped to make New York City safer than it has even been from a terrorist attack. But, again, we are under no illusions. As we continue to succeed in protecting the city and as the memory of September 11th fades, we in the police department must never forget that New York remains the world's most enduring terrorist target. We must bear this in mind especially in the midst of a tough economy and as the public's attention and that of the media turns to other issues. We also have to contend with the reality of limited resources. Like all city agencies, the police department has been called on to make difficult, painful budget cuts. So far we've had to reduce recruit classes to about one-quarter of the normal size. We don't know yet what effect the federal stimulus package will have on our future hiring, but we remain hopeful that it will provide some relief. But in the meantime, our imperative is a very simple one: We have to continue to do more with less without compromising any aspect of our mission. While that task may sound daunting, it's worth remembering that we once faced it before. After September 11th, when the city confronted a perfect storm of economic and security challenges, the police department devised strategies to use our resources more efficiency. So far those efforts have paid off. Today, despite having 5,000 fewer officers in our ranks than we had in fiscal year 2001, crime is down, as Jim said, by nearly 40 percent from where it was eight years ago. At the same time, we built a powerful deterrent to terrorism. Our challenge, and one we share with you, is to make the city's defense our highest priority, to keep our ears close to the ground here in New York and our eyes fixed to the horizon. The police department looks forward to your continued support in that all-important work. Thank you very much for inviting me. (Applause.)ZIRIN: Thank you, Ray, for your extraordinary service and also for those remarks. I was curious as to -- just to start, what does your day look like? How much time is spent on counterterrorism, how much is spent on anticrime, and how does the day begin and how does it end?KELLY: Well, no two days look alike, but the morning is pretty much always the same: We start a counterterrorism brief. I sit down with Commissioner Cohen and Commissioner Falkenrath and sometimes key members of their staff to get a sense of what's happened in the last 24 hours. And that is a perspective -- what's happened globally and what's happened locally. Obviously we have some of our own investigations going on right here. As I said in my prepared remarks, we have officers assigned overseas. We're gathering information from them. We're looking at our open-source material that comes in. The analysts that I mentioned are really world class. We have a cadre of about 30 analysts divided roughly evenly between our intelligence division and our counterterrorism bureau. They're from some of the top educational institutions in the country. We have people here from Harvard Law School and Harvard undergraduate and these top schools, and they just do an excellent job of synthesizing information, gathering it and putting it in sort of digestible form. And that's the type of information that's used in a lot of places in the department, but when we have those mobilizations, those deployments of lots of police cars in the morning -- we do that several times a day -- they are getting that information as well. They're being briefed by our inspectors, who are receiving their information from our analysts. So -- but after our terrorism briefing, there's usually some ceremonial aspect -- perhaps a promotion ceremony of some sort. We have 52,000 employees -- we have roughly 36,000 uniformed officers now versus civilian employees, so there's lots of different events that happen during the day. There's crime strategy meetings. I'll go to community meetings. We go to -- I go to community council meetings usually in the evening, and then there's always the possibility of some unscheduled event happening -- officer may be hurt. I spend a lot of time in hospitals. And you know, as I say, no two days are probably exactly alike, but you start off with that counterterrorism brief in the morning.ZIRIN: Now, you've said that you've succeeded in giving the department an international focus, which it certainly didn't have before, and you're noted for being a student of history and thinking outside the box. It was unprecedented, certainly, to appoint as top commissioners people who came from outside the department -- Cohen, Sheehan, Falkenrath. And did this create new problems within the police culture?KELLY: It really created no or very few internal problems because the police department is really a hierarchal organization. It's very well structured. There may be grumbling, but they're going to do what the commissioner wants them to do. I won't necessarily -- (inaudible) -- going on.ZIRIN: I knew you would say that. (Laughs.)KELLY: There was some -- you know, we've assigned people overseas, and there was some I think resistance to that in the federal government -- sort of, "Who are they?" You know, "This s our job; who do they think they are?" But of course, we're a city that's been attacked twice and we want to do everything we possibly can do to see that it doesn't happen again. That all quieted down when Bob Mueller came to visit a few years ago. He had a briefing on what we're doing. I think it's fair to say and he'll say that he was very impressed with what's going on the department, and whatever resistance -- at least overt resistance that was happening from the federal side of the house quieted down. ZIRIN: So certainly immediately after 9/11 there was said to be some tension between the NYPD and the federal agents -- the FBI and the CIA. Since the formation of the Joint Terrorism Task Force do you think that's improved considerably?KELLY: Oh, yes. No, it's improved tremendously.Joint Terrorism Task Force actually started in New York in 1980, so it had been around a while. Now the FBI has over a hundred of them. And basically the FBI is at the core of all of these task forces and other agencies are sort of appended to it -- something that we'd like to change and have it more marbleized. But there is a free exchange of information. And quite frankly, if something happens, nobody wants to be caught holding the bag, so to speak, so that's one of the motivators for the exchange of information. But we have a strong working relationship. I can't say that there's a total absence of tension, but generally speaking we get along well.ZIRIN: Well, there are some amazing anecdotes. There was the hotel bombings in Jordan; there was the Madrid train bombing; there was the London Tube bombing. And NYPD detectives were on the scene almost immediately -- within a very short time. What did they hope to accomplish for New York City? KELLY: We wanted to get any bit of information that's going to help us better protect the city, and we want to get it as quickly as possible. When the London bombings happened -- they happened at 8:00 in the morning. Three of them happened in the subway system; the fourth was 8:52 in the morning on a bus. Now, we're five hours, of course, behind London, so we had our officer embedded in headquarters at New Scotland Yard, and he was able to give us real time information from their command center, because we didn't know -- nobody knew -- whether or not this was part of a worldwide series of attacks. So at the very least what we wanted to do was to give some comfort to the riding public in New York City. So we had enough time, with the specifics that he gave us, to deploy additional resources, to hold on to officers who were working through the night -- give them some basic information to bring on new officers and have them ride on subway trains and deploy them to the stations around the city.With the Madrid bombing -- when that bombing took place we sent our liaison officer from Tel Aviv to Madrid. He arrived that day, and then we sent a team of police officers who are expert in the transit system and how trains are constructed -- we sent them there the next day to get any bit of information that would help us better protect ourselves. What we did do is we found out that the bombs were actually assembled a few blocks away from the train station, so we started our patrols or made certain that our patrols did sort of a perimeter check on all stations further out than the immediate area of the station. ZIRIN: And that was new. Usually they've been known to be assembled some distance away.KELLY: That's right.ZIRIN: Even the first attack on the World Trade Center, they were assembled in New Jersey, I think.KELLY: Yeah. And this is a little bit of information, but you don't know how significant it is when you get it.Now, we did not get a report on the Madrid bombing from the federal government for 18 months. We were able to get our information literally that day, and increasing information. That's just the way the federal government works. I worked there myself for four and a half years. And so it's not really a criticism; it's just an observation. It is just a slower series of institutions that they've assembled down there, and we need to act as quickly as possible here.ZIRIN: Let's take one of the most recent horrific attacks internationally, in Mumbai. That was Lashkar. You had Officers on the scene also, quite -- (inaudible).KELLY: Right.ZIRIN: And what did you learn from the attack on Mumbai on the two hotels?KELLY: The attacks on Mumbai happened -- took 60 hours. They went -- they started on November 26th just a few hours before our Thanksgiving -- the Wednesday before -- and ended on November 29th. And we dispatched our officers literally right after the shooting stopped on November 30th. We dispatched a team of three officers, one of whom had been in Mumbai two years before because there was a series of commuter train attacks in Mumbai. We wanted to get information then, so we sent him to Mumbai. He was actually in Amman, Jordan. We sent him to Mumbai to get information in 2007 and he made some excellent contacts, so we used his contacts again to have him go there and to interview high level police officials -- and they were very receptive -- to visit the crime scenes, and to take lots of pictures. They went to the train station. They talked to the station manager. What we found out -- and we put in a very I think well done comprehensive report that we provided to the FBI on December 5th -- we found that the shooting -- the shooting that was done was very well targeted. We don't think that automatic weapons were used; semi-automatic weapons because there were no bullet holes that were high in the ceiling. Usually when you fire an automatic weapon you have a certain amount of bullets that will go up higher. That the police were overwhelmed; that they simply were not trained to handle this. They were not sufficiently armed. And all of this information was transmitted to an auditorium of NYPD SHIELD members -- about 400 members in our auditorium, with pictures, and our three investigators on the live feed from Mumbai to our audience full of SHIELD members. That day we had a tabletop exercise with all the senior commanders roughly simulating what happened in Mumbai and a actual tactical exercise -- (inaudible) -- in the field where we had our Emergency Services officers engage in a similar Mumbai incident. And that was fed to us by closed-circuit TV. What I was concerned about was a protracted situation such as that where you might have 10 or more individual things going on in New York City, with hostages perhaps being taken. We have 400 officers that are extremely well trained. We think they are the best in the business at what they do -- Emergency Service officers. But if we had a longer-term event, there was concern that we may not have enough well trained people. So as a result of what happened in Mumbai, we've embarked on a training program in heavy weapons for members of our Organized Crime Control Bureau, which is essentially our narcotics division and some other investigative units; our range personnel -- firing range personnel. And we also realized that these attackers were very familiar with the hotels and the targets that they hit, so we've taken our cadre of Emergency Service supervisors, sent them to major hotels in the city with cameras, and they've had tours of all of the hotels primarily in midtown Manhattan, but we're now going out to the hotels at the airports so that we are familiar -- our first responders are familiar with the sort of nooks and crannies of the major hotels in New York.ZIRIN: I can't help but ask, but are your sharpshooters as good as the Navy SEALs? (Laughter.)KELLY: Oh, I hope so. That was some job. So that's some of things we learned from Mumbai. But again, we got there quickly. The lessons were learned as quickly as we could extract them, and then we disseminated it quickly.ZIRIN: You spoke about the radicalization of homegrown terrorists. What goes into a terrorist? I mean, how do they reach them and how do they radicalize people who would otherwise be peaceful?KELLY: That's not -- there's no easy answer. What we did do, under the direction of Larry Finch, who -- former CIA employee who now -- who works for us -- two of our analysts, Mitch Silver and Arvin Bhatt, engaged in producing a radicalization study, and they went to various locations of terrorist events throughout the world. They went to Amsterdam where the Theo van Gogh was assassinated. They looked at our own events here. They went to Australia for the -- (inaudible) -- group. And they gathered a body of information that gives some insights -- this is not the Rosetta Stone, but it's some insight into how terrorists are developed -- these so-called unremarkable people who decide to kill innocent people in their own country. And they came to certain observations that -- usually an event that might trigger this tendency towards radicalization, like Abu Ghraib, which I talked about in my remarks; that there's often a sanctioner, somebody who is not necessarily a religious leader or religious person, someone who they look up to, someone who sort of crystallizes their thoughts. And then there is a fairly -- this process could take a while, but there's a fairly quick decision to decide on doing jihad -- the jihadization process. And we looked at the events -- the Toronto 18, as they're called. That's where there was a -- part of a plot was to -- whether or not it was far-fetched is difficult to say, but they were going to behead the prime minister of Canada. But the sanctioner in that group was actually somebody who was almost a janitor of a mosque in Toronto. So it is not -- there's not a clear template, but at least there's some clarity starting to be given to the process. I advise anybody interested in this issue to go to our website, which is www.nyc.gov/nypd, and this report -- it's a 90-page report -- it's on the website. I think they did an excellent job.ZIRIN: One last question right before I open it up. One has the sense that there's been the increased use of surveillance cameras in not only the war on terror but also antiterrorism activity, but also crime and anti-crime activity. Has that been stepped up, and where are the cameras placed, and do you have people watching them 24/7, and have you found it to be effective?KELLY: Well, I would like to greatly increase the number of cameras that we have in the city. You know, London has like 500,000 cameras. We just put in an overlay of 500 cameras in areas throughout the city in every one of our eight borough commands. They're essentially in higher crime areas, and they have a sign that says NYPD security camera.These cameras are not monitored. ZIRIN: (Inaudible) -- turn the camera on -- KELLY: No, we turn the camera on. (Laughter.)And they're not monitored, but if something happens you can go back and download it and we can run a live operation through those cameras if we so choose. Now, I've mentioned the Lower Manhattan Security Initiative. We are collaborating with private sector in that area, and we hope to have a total of 3,000 cameras -- 1,000 public sector; 2,000 private sector cameras -- brought together. And they will be monitored in a coordination center which is already up and running in Lower Manhattan. That center will be manned by both police officers and private security folks. So we're looking to put in more cameras, no question about it. We're looking to get money from the federal government to help us do that.I want to stress that all of these cameras are in public places. We're not putting them by any stretch of the imagination in areas where there is a reasonable expectation of privacy. You know if you go into a supermarket or into a department store, your picture is taken 30 times. By the way, we have found that this issue always surfaces -- the Civil Liberties Union will bring it up, but there is really not much of a constituency that is against cameras. It's just -- people have accepted it as a fact of life. We've done surveys and 80 percent of the people like the idea of having surveillance cameras in public spaces.ZIRIN: I'd now like to invite everyone here to join in this conversation. By everyone I exclude members of the press because the commissioner has said he will take questions from members of the press after the meeting. We'll ask that the questions come from members. I ask that they be questions, not statements -- one question. I guess you all know the drill: Wait for the microphone, speak directly into it, stand, state your name and affiliation. And I know the commissioner will be delighted to take your questions.Yes, ma'am?QUESTIONER: Thank you. I'm Inger Elliot, IME, Ltd. I wonder if you would comment about Cheney's remarks because you -- (off mike) -- you brought up that in conversation. But I wonder if you might comment about the idea of torture versus getting information from that person. KELLY: Well, I would support the president's position. I don't think we should engage in torture. And it may provide some short term gain, but I think in the big picture it's not helpful. In the overall efforts, I just don't think it's the way we should be doing business.ZIRIN: Yes, sir?QUESTIONER: I'm Patrick Burns, Euclid Systems. Commissioner, the vice president has suggested that -- our former vice president has suggested that our president's actions have increased the risk of catastrophe. Would you comment on that? KELLY: I really -- I don't know in what context he said that. I know he said that, but -- say -- the president's actions releasing those memos -- is that what you're talking about? QUESTIONER: I think so.KELLY: Releasing the memos? I would hesitate -- QUESTIONER: He said increase the risk -- (off mike).KELLY: I really can't comment on that. I'm not certain exactly what he's referring to. But I would say that it's a tough decision for the president to make. I probably would have advised not to release those memos because I think it can undermine our relations with our allies, with other countries in the future. But I understand there was lots of pressure to do that. ZIRIN: Roland?QUESTIONER: Roland Paul. Maybe I can focus this general question. Was any information gained from -- I may mispronounce these guys' names -- Zubaydah or Mohammed Sheikh Ali or any of the other 26 who are known to have received aggressive interrogation techniques -- was any information received from them that was helpful in preventing or foiling a plot against New York City?KELLY: I believe that answer is yes. I mean, that information is out in the public domain. MOREKELLY: (In progress) -- when you say the president's actions releasing those memos -- is that what you're talking about?QUESTIONER: I think so.KELLY: Releasing the memos. I would --QUESTIONER: (Off mike.)KELLY: I really can't comment on that. I'm not certain exactly what he's referring to. But I would say it was a tough decision for the president to make. I probably would have advised not to release those memos, because I think it can undermine our relations with our allies -- with other countries in the future. But I understand there was lots of pressure to do that.ZIRIN: Roland.QUESTIONER: Yeah. Roland Powell (sp), a lawyer.Maybe I can focus this general question: Was any information gained from -- I may mispronounce these guy's names -- Zabaydah or Mohammed Sheikh Khalid or any of the other 26 who are know to have received aggressive interrogation techniques -- was any information received from them that was helpful in preventing or foiling a plot against New York City?KELLY: I believe that answer is yes. I mean, that information is out in the public domain.Khalid Sheikh Mohammed came forth with information and that information was helpful in identifying Lyman Faris, who was dispatched over here to scout out the Brooklyn Bridge.ZIRIN: Ella.QUESTIONER: Helen O'Ellicott (sp) with -- (inaudible).Could you talk a little bit about the NYPD's interaction with other police departments around the country and the mentoring role it might play with other large cities -- for example, L.A. -- and also along the U.S.-Mexico border?KELLY: Well, we have a strong relationship with a lot of cities. And a lot of agencies send people here to New York to look and examine what we're doing to take away what they think is helpful to them and that includes Los Angeles.The city that probably looks the most like New York is London, quite frankly, because of its topography and population -- about 8 million people. So we have a very strong working relationship with London.There are people here all the time exchanging information and we're certainly open to that.Now, you talked about the border -- I'm sorry -- southwest border?QUESTIONER: (Off mike) -- interactions with the cross border -- (off mike).KELLY: We don't have that much contact, quite frankly. I used to be the Customs commissioner and I had a lot more focus in those days on what was going on on the border. But we don't have any direct relationship with law enforcement agencies on the border. If something arises and we need information, you know, there's a network in which we can get that information. But I can only tell you that, you know, if people ask me what's the effect of all the violence that's going on in Mexico -- what does it mean here in New York? What we see is an increase in price in drugs and a diminishment of the quality of drugs that appear on the street.ZIRIN: Yes, ma'am.QUESTIONER: Thank you for the very lucid and valuable comments. I'm glad to know you're taking care of us!I'm Carole Brookins; I'm former U.S. director on the board of the World Bank. I moved back to New York after 25 years.I do have a question regarding this current version of jihad. And so much of what began was linked to the Palestinian problem and the Arab-Israeli problem. Hypothetically, the Arab-Israeli is resolved 12 months from today. Is this version of jihad going to be diminished or does it have a life of its own?KELLY: Unfortunately, I don't think it's going to be diminished. I think there will always be reasons if you want a reason. And I think there are people out there who want to hurt us and want to hurt us badly. New York is a target that gives them everything they want -- it's the communications capital; it's the financial capital. And I'm pretty parochial. I'm looking at the five boroughs here. But if the Israeli-Palestinian problem was solved tomorrow, unfortunately I think you wouldn't see much of a reduction at all in that desire to come here. There are hotbeds of problems throughout the world. Obviously we talked about the FATA in the northwest territories of Pakistan. It's an area of real concern for us now and has been for quite awhile. Pakistan is an unstable country and what happens there can greatly impact us in this city. So no, unfortunately I think that's -- a lot of people say that. I know I hear that, and I certainly hope something is worked out, but I don't think it's going to change the overall threat very much.ZIRIN: Yes, sir.QUESTIONER: Thank you. Dick Huber from Antarctic Shipping. I also enjoyed your remarks.The mayor has made gun availability a big issue. And of course, the National Rifle Association blocks every attempt at passing any meaningful legislation.Do you think that with the new government there's any chance that something might be done to control this wild proliferation of firearms in our country -- and in New York City specifically?KELLY: I hope so, but I'm not optimistic. Gun control is the third rail of politics in Washington on both sides of the aisle. That's just the reality of the situation. The mayor has done a terrific job. He's really coalesced hundreds of mayors around the issue. The most immediate challenge is to pass a law that will take away what we call the Tiahrt Amendment. Tiahrt is a congressman from Kansas -- Wichita, Kansas. And he has put in an amendment or a rider to the Bureau of Alcohol, Tobacco and Firearms budget, funding -- and he's done it for several years -- that prevents them from exchanging information or allowing information to be exchanged among law enforcement agencies concerning where guns are coming from, where they're purchased.I mean, that's an indication of the power of the NRA that you're able to prevent law enforcement from getting information -- exchanging information that will help us investigate gun crimes. So I'm not particularly optimistic, as I say, about a major change happening as far as national gun control strategies.ZIRIN: Yes, sir.QUESTIONER: Thank you. Brett Spar (sp) of Ace Link Capital (sp). Thanks for joining us, Commissioner.As you know probably better than anyone, there's been a lot of debate around our readiness for a mass evacuation of Manhattan Island in the event of a chemical, nuclear, biological attack. And we've either read or heard that the tabletop exercises have not ended well -- for example, if the train tunnels are not accessible.Can you just comment on our readiness today for such an evacuation and the circumstances under which it might occur?KELLY: Well, evacuation is a major, major challenge -- no question about it -- and I certainly wouldn't want to sugarcoat it.There are plans in place, basically, where the city is cordoned off into sectors -- about 100 sectors. Obviously, one thing that we're fortunate to have is an effective mass transit system. That's going to be helpful in any evacuation.I mean, to evacuation a city of over 8 million people is extremely difficult to do and would take a long time to do it. Now, to evacuate parts of the city would obviously be much easier. And there are plans -- plans coordinated by the Office of Emergency Management. We have major role in it; the fire department has a major role in it. We exercise these plans -- hurricane response plans will be exercised and some of them will involve evacuations.So we can evacuate portions of the city, but just the idea of evacuating the entire city -- and where do you go when we talk about evacuation? You know, you go through New York City. When you evacuate Long Island, how do you do that? You know, the Long Island portion of New York City where do you go? Do you out to Long Island? Do you go upstate? These are all difficult issues and they're thought about, but there's no easy answer to the problem.ZIRIN: Yes, sir.QUESTIONER: My name is Michael Scholl of Scholl & Associates.Now, Commissioner, you are uniquely qualified to compare what New York City is doing and what is being done in Washington. And I think the consensus not just here, but a book has been written about the fact that New York is doing a better job in much of counterterrorism activity.If you had the power to change one thing in Washington in this area, what would you recommend?KELLY: (Laughs.) There's a loaded question!You know, what we're doing here suits us. We're a city that's been attacked twice. We had, as I mentioned, seven other plots. So what we're doing is appropriate, in my judgment, for the city. There are some things the federal government simply can't do.One of the things that we're able to do is to use human beings to gather information for us. And that's partly as a result of our tremendous diversity -- the diversity of the city and the diversity of the department.Out of the last seven police academy classes, each of them had at least 900 recruits in that class. We had graduates born in 50 or more countries, which is simply phenomenal. So this gives us, as I said, great diversity, great language capability, the ability to do some sensitive investigations. It's very difficult for the federal government to do that. Federal investigative agencies just don't have the sort of compact universe that we're dealing with. So we're fortunate. We're fortunate, but I really don't want to criticize federal agencies. Having worked there, I know that the playing field is a lot different. Congress has a lot more involvement in day-to-day operations in Washington than, say, the legislative body here in New York City. It's just a more complicated environment to work in.But we are blessed in the diversity of this city, and consequently the diversity of our department, is our strength. And we're using it to make the department even better than -- every year it gets stronger and more effective, in my judgment.ZIRIN: Lynn Cher (sp).QUESTIONER: Thank you.Commissioner, I wonder if you could comment on the trial -- the upcoming trial -- of the fellow from Somalia, the pirate, and what if any threat that might have to this city. There have been some who have said, do we want another high-profile terrorism trial right here in New York?KELLY: You know, we have a ways to go before we get to the trial. He just showed up the other day here.You know, I don't see it as raising much of an issue here. I don't think it will increase the threat level very much if any. You know, these are robbers. These are not terrorists. These are people who are trying to get money. And so far, they have not been associated with any terrorist group. There is a fairly strong terrorist operation in Somalia -- al-Shabab. And it's something that we keep our eye on. There are pockets of Somali residents here in the United States -- relatively few in New York, but in Minnesota and in Maine and Toronto has a very large population. But our analysis shows that the pirate activity and the terrorist activity, if you will, are separate and very much apart right now. Could they come together some time in the future? It's possible, but I just see this young person as a robber trying to get money in a very poor environment.ZIRIN: The lawyer says he's a juvenile delinquent.KELLY: Well, I guess the question is how old are you?QUESTIONER: Hi. Inishnal Wami (sp) from McKinsey.One of the things about the Mumbai attacks was how the folks came in by the sea and attacked from the seawall. You speak about New York City being an archipelago with a lot of seafront. How do we protect ourselves there and what the plans are?KELLY: Yeah. We have a very strong working relationship with the Coast Guard. We have our own harbor unit. It has a total of about 40 vessels. We have some pretty neat gear. We have a little submarine that we use to go under and take a look at ships that are coming in. We even board the Queen Mary, believe it or not, when it's coming into harbor. We do it out by Ambrose Lightship.So we work, as I say, closely with the Coast Guard. We are, quote, "designated" to have the authority that the Coast Guard officers have in boarding ships. We're pretty vigilant. The Coast Guard is building a new command center here in New York -- a coordinate center. We'll be participating in that.We have a lot of focus and a lot of attention paid to the water of New York -- the waterways. We have almost 500 miles of coastline in New York City. We have our little surges, if you will, where boats come together. We have that with our radio cars and we have it with our harbor craft as well.So I think -- again, Mumbai is, you know, the police -- they acknowledge that they didn't respond well. We are in a much better position to respond if, God forbid, anything like that happens here. People on our boats are all heavily armed and they're experienced in using those weapons.ZIRIN: John.QUESTIONER: John Templeswank (sp).I really want to talk a bit about -- have you talk a bit about your foreign operations. To what degree are you cooperating well with the CIA and the FBI in your foreign operations or are there turf problems?KELLY: Yeah. We operate, I think, well with both agencies. We have actually someone from the CIA assigned up here. He works in our fusion center that we have. I get briefings from this individual, David Cohen, 35 years in the CIA -- actual relationship with the agency.As far as the FBI is concerned, we have 120 of our detectives working on the joint terrorist task force. Our detectives went to Mombasa and brought this young man back with FBI agents. So we're working very, very closely together.I think the notion that there's a lot of friction between the federal agencies and NYPD just is not the case. You know, sometimes you'll have two agencies who want to do a good job and sort of where the rubber meets the road there may be some tension. But at the higher level, everybody gets along, and generally speaking, there's mutual respect.CIA, DIA, FBI, ICE -- which is the Customs enforcement unit -- Bureau of Alcohol, Tobacco and Firearms -- we work with all of these agencies every day. We do joint operations with them every day. So the relationship, in my judgment has never been better. And I spent a long time in the New York City Police Department. I was in the federal government where I had federal agents that were reporting to me and now back in the police department. I think our relationship is better now than it's ever been.ZIRIN: I'm afraid we have to wrap up. And I want to say thank you, Commissioner Kelly, for sharing your views with us this evening. Really remarkable insights. And as New Yorkers, we should all thank you for being Ray Kelly and for protecting us. And this is really, in the real sense, where the rubber meets the road in government and you certainly personify that. (Applause.)KELLY: Thank you, Jim. Appreciate it. (C) COPYRIGHT 2009, FEDERAL NEWS SERVICE, INC., 1000 VERMONT AVE.NW; 5TH FLOOR; WASHINGTON, DC - 20005, USA. ALL RIGHTS RESERVED. ANY REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION IS EXPRESSLY PROHIBITED. UNAUTHORIZED REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION CONSTITUTES A MISAPPROPRIATION UNDER APPLICABLE UNFAIR COMPETITION LAW, AND FEDERAL NEWS SERVICE, INC. RESERVES THE RIGHT TO PURSUE ALL REMEDIES AVAILABLE TO IT IN RESPECT TO SUCH MISAPPROPRIATION. FEDERAL NEWS SERVICE, INC. IS A PRIVATE FIRM AND IS NOT AFFILIATED WITH THE FEDERAL GOVERNMENT. NO COPYRIGHT IS CLAIMED AS TO ANY PART OF THE ORIGINAL WORK PREPARED BY A UNITED STATES GOVERNMENT OFFICER OR EMPLOYEE AS PART OF THAT PERSON'S OFFICIAL DUTIES. FOR INFORMATION ON SUBSCRIBING TO FNS, PLEASE CALL CARINA NYBERG AT 202-347-1400. THIS IS A RUSH TRANSCRIPT. JAMES D. ZIRIN: Good evening. Welcome to this evening's Council on Foreign Relations meeting with Police Commissioner Kelly. The meeting is on the record.When Henry Kissinger was introduced at a similar gathering, the moderator said, "Our guest really needs no introduction. You are all familiar with his many accomplishments." And Henry interrupted and said, "Please, tell them about my many accomplishments." (Laughter.)And mindful of this, I will speak briefly -- because if I don't, Ray will never forgive me -- on some of the accomplishments of our police commissioner, whose rich biography is presented in your program. Ray Kelly, like most visionaries, is a student of history, and history teaches us that the police commissioner of the city of New York is at least as important as the mayor. (Laughs.) No mayor -- he would deny this -- this part is off the record. (Laughter.) No mayor of the city of New York has ever gone on to higher office, but two police commissioners have gone on to higher office. Both are great favorites of mine. One was Thomas Murphy, who became a federal judge -- a great federal judge, and the other was Teddy Roosevelt, who, like our guest, instituted transforming changes in the NYPD. No police commissioner in our history has been as qualified as Ray Kelly at the time he took office. A 38-year veteran of the NYPD, he is the only person to hold his post for second separate tenure. During his term in office, crime is down 40 percent from 2001 levels. Homicides in particular are at the lowest levels since 1961 when they started keeping accurate records, and this has been no accident. Commissioner Kelly established a real-time crime center, a state-of-the-art facility that uses data mining to search millions of computer records and put investigative leads into the hands of investigators in the field. He designed a program called Operation Impact that drove crime down by concentrating police resources in high crime areas.Since 9/11, terrorist attacks have been nonexistent in New York, as we all know -- thank God -- but few know the dimensions of the horrific plots, which I'm sure he might tell you about, that have been thwarted by the elite counterterrorism units that Ray Kelly created. No wonder General Barry McCaffrey when he was here said from this very podium that the NYPD is the greatest security organization on the face of the earth today. This evening Commissioner Kelly will deliver some prepared remarks about the post-9/11 world. Then he and I will have a conversation, and finally he will take your questions.This session is on the record, as I said, and you are invited to turn your cell phones and BlackBerrys on -- but only after the meeting has concluded. (Laughter.)I'm honored to give you Police Commissioner Kelly. (Applause.)RAYMOND W. KELLY: Thank you, James. Jim and I go back a fairly long way. I do have some prepared remarks, and obviously Jim and I are going to sit up here and hopefully I'll be able to answer some questions. Not too long ago it would have been somewhat unlikely for a New York City police commissioner to appear before this forum, but this is my second visit to the council in four years. That's because since 2002 the New York City Police Department, obviously a municipal police agency, has adopted an intensely international focus, and we've reorganized the department to accommodate this world view. Now, almost seven and a half years ago we became the first police department in the county to develop our own counterterrorism bureau. We restructured our intelligence division and appointed leaders with exceptional credentials to guide our efforts. They include our Deputy Commissioner of Intelligence David Cohen, a 35-year veteran of the Central Intelligence Agency who lead both the operational and the analytical arms of the agency; Deputy Commissioner of Counterterrorism, Richard Falkenrath, a Harvard scholar and a former White House advisor on homeland security. And we're fortunate to have with us this evening Richard's predecessor, Mike Sheehan. Mike did a phenomenal job. I think Mike is still here. Mike, are you here? There he is right there. Mike was deputy commissioner of counterterrorism number two. Mike was a former ambassador for counterterrorism at the State Department, a member of the both Bush I and Clinton NSC staff and a West Point graduate, a former Green Beret. So just an outstanding individual and did an outstanding job with the department. So good to have you here tonight, Mike.Now, with the help of these and other experts, we are constantly studying events worldwide and assessing their implications for our city. We also have a lot to learn from institutions like the council. This past November we invited your president, Dr. Richard Haass, to address an audience of our senior executives at police headquarters. Richard was part of a distinguished speaker program that we created. Other participants have included former British Prime Minister Tony Blair, King Abdullah of Jordan, the emir of Qatar, former Secretary of State Henry Kissinger, Generals Barry McCaffrey and Bernard Trainor, and top international journalists such as George Packer and Peter Bergen. You might say that the NYPD has aspired to become a Council on Foreign Relations with guns. (Laughter.)Now, these discussions have greatly enhanced our understanding of the terrorist threats facing New York City, a threat that unfortunately shows no signs of abating. If you look at the intelligence -- and I can assure you we look at it closely every day -- you understand that al Qaeda is an extremely resilient organization. Despite repeated blows to its leadership by the U.S. military and expanded predator strikes, we see a continual replacement process of key operatives at the second and third tier level. Aided by a sanctuary in the FATA and the Northwest Territories of Pakistan, this has given al Qaeda a consistent ability to plot against the West. Obviously the most important leaders remain in place: Osama bin Laden and Ayman al-Zawahiri. We know from the recorded messages that they continue to make -- that their voices and directives are still being heard. They're being helped in this regard by an American spokesman, Adam Gadahn, who enables them to communicate directly with Western audiences. Al Qaeda also continues to build a web of alliances with likeminded groups around the globe, from the Taliban and Lashkar-i-Taiba in Pakistan, to Jemaah Islamiyah in Indonesia, to Salafists in Algeria, and Shabab (sp) in Somalia. From the intelligence we receive about these groups and looking at their public statements, we know that New York City remains the number one target of global Islamic terrorism. Many tend to forget, but since 9/11 we've been the subject of seven major plots here in New York. They include a plan to bring down the Brooklyn Bridge, to blow up financial institutions like the New York Stock Exchange and Citigroup headquarters, to smuggle explosive materials into Manhattan in shipping containers, and to release cyanide gas in the subway system. There was also the scheme by homegrown terrorists to bomb the subway station at Herald Square; another to blow up the path tunnels and retaining walls at Ground Zero, and a conspiracy to explode the jet fuel pipeline and supply tanks at John F. Kennedy Airport.Last summer we also saw the arrest of Aafia Siddiqui, an American-educated al Qaeda operative. She was found in Afghanistan carrying notes about a mass casualty attack and references to the Empire State Building, Wall Street and the Brooklyn Bridge. So for the police department's -- from our standpoint, we see no reason whatsoever to let our guard down. In addition to al Qaeda and its regional affiliates, which make up the first two tiers of the terrorist threat, we are very concerned about a dangerous third tier, which is homegrown terrorism. Indeed the majority of successful terrorist attacks in the West since September 11th have been carried out by individuals living in the countries that they targeted. In New York, we saw an example of this in the failed 2004 plot against Herald Square. It was conceived by two Brooklyn-based extremists outraged over the abuses at Abu Ghraib prison in Iraq. Given the challenge this threat presents, we've made an attempt to understand it more thoroughly. In 2007 two of our intelligence analysts undertook the study of the process of radicalization. Through a detailed analysis of case studies worldwide, they provided a number of valuable insights we shared with the public and other law enforcement agencies. We've taken the same highly analytical approach when it comes to our study of the different tactics terrorists use. We've compiled manuals on trends in improvised explosive devices and shared them with our bomb squad. We've prepared briefings on suicide bombings in Israel and truck bombs in Afghanistan and Iraq. We've devised methods to intercept a dirty bomb attack and to counter commando-style assaults like those that we saw in Mumbai and Lahore. Our counterterrorism strategies are multilayered and our alliances to defeat terror extend far and wide, from the five boroughs of Manhattan to cities around the world. We posted detectives and senior officers in 11 international cities where they partner with local police agencies, respond to the scene of terrorist events, and report back to our department on the methods used. We presently have officers stationed in Abu Dhabi; in Amman; in London; in Leon, France and Paris; in Madrid; in Montreal; in Toronto; in Singapore; in Tel Aviv; and in Dominican Republic. Their work is supplemented by a core of civilian intelligence analysts with expert knowledge of counterterrorism and foreign affairs. We recruited from within our ranks hundreds of native speakers of languages such as Arabic, Dari, Farsi, Urdu, Pashtun, Bengali. We tested them for fluency and reassigned them to counterterrorism duties. These include monitoring cyberspace for any potential threats to New York. Perhaps it is because of NYPD's reach into international arena that we are being targeted for computer hacking in much the same way the Pentagon has been with its plans for the Joint Strike Fighter. You may have seen the lead story in the Wall Street Journal yesterday concerning this. We've documented that computers with IP addresses in China, the Netherlands and other countries are engaged in unauthorized scanning of NYPD computers at the rate of 70,000 attempts a day, looking for opportunities to hack into our system. So far all attempts have failed due to a robust protective system that we constructed over the last seven years. Nevertheless, it's a threat that we must continue to pay close attention to every day. Our primary conduit for terrorist-related information about New York is a Joint Terrorism Task Force with the FBI. We bolstered our representation on the JTTF from 17 detectives on September 11th, 2001, to more than 120 today to a program called Operation Sentry. We work with almost 100 law enforcement agencies up and down the East Coast to generate leads and to generate information. Our partnership with the private sector gives us a network of additional eyes and ears. To our NYPD SHIELD Program -- a program that Mike Sheehan had a great deal to do in initiating -- we share news and information with 6,000 private security managers by way of a password-protected website, and then exclusive briefings at police headquarters. Under Operation Nexus, our detectives make thousands of visits to the kinds of businesses that might be exploited by terrorists, such as truck rental companies, scuba shops and fertilizer stores. Ideally we want to stop any threat in its earlier stages, but we have to be prepared if, God forbid, it already comes our way. Under our partnership with the Department of Homeland Security and 65 law enforcement agencies throughout our region, we're placing a ring of radiation detectors around the city to stop a nuclear or dirty bomb from entering the five boroughs. As part of our Lower Manhattan security initiatives, dozens of private companies have given us direct access to the live feeds from their surveillance cameras. Combined with our own cameras and license plate recognition readers, we're getting a detailed view of activity downtown. Every day, based on intelligence, we deploy large convoys of patrol cars with emergency lights and sirens on to make sudden, unannounced visits to iconic and sensitive locations -- always get a lot of questions about that phenomenon -- lots of radio cars moving around the city. We're constantly looking to disrupt surveillance, to let any would-be terrorist know that we're watching all the time and that we could be just about anywhere. We conduct daily unannounced inspections of subway trains, as well as track systems and tunnels. After the London transit system was bombed in 2005, we launched a new program to protect the subways. Passengers are informed in advance that large bags and backpacks are subject to search. To date, we've instituted over 65,000 checkpoints at stations across the city. Taken together, these measures have helped to make New York City safer than it has even been from a terrorist attack. But, again, we are under no illusions. As we continue to succeed in protecting the city and as the memory of September 11th fades, we in the police department must never forget that New York remains the world's most enduring terrorist target. We must bear this in mind especially in the midst of a tough economy and as the public's attention and that of the media turns to other issues. We also have to contend with the reality of limited resources. Like all city agencies, the police department has been called on to make difficult, painful budget cuts. So far we've had to reduce recruit classes to about one-quarter of the normal size. We don't know yet what effect the federal stimulus package will have on our future hiring, but we remain hopeful that it will provide some relief. But in the meantime, our imperative is a very simple one: We have to continue to do more with less without compromising any aspect of our mission. While that task may sound daunting, it's worth remembering that we once faced it before. After September 11th, when the city confronted a perfect storm of economic and security challenges, the police department devised strategies to use our resources more efficiency. So far those efforts have paid off. Today, despite having 5,000 fewer officers in our ranks than we had in fiscal year 2001, crime is down, as Jim said, by nearly 40 percent from where it was eight years ago. At the same time, we built a powerful deterrent to terrorism. Our challenge, and one we share with you, is to make the city's defense our highest priority, to keep our ears close to the ground here in New York and our eyes fixed to the horizon. The police department looks forward to your continued support in that all-important work. Thank you very much for inviting me. (Applause.)ZIRIN: Thank you, Ray, for your extraordinary service and also for those remarks. I was curious as to -- just to start, what does your day look like? How much time is spent on counterterrorism, how much is spent on anticrime, and how does the day begin and how does it end?KELLY: Well, no two days look alike, but the morning is pretty much always the same: We start a counterterrorism brief. I sit down with Commissioner Cohen and Commissioner Falkenrath and sometimes key members of their staff to get a sense of what's happened in the last 24 hours. And that is a perspective -- what's happened globally and what's happened locally. Obviously we have some of our own investigations going on right here. As I said in my prepared remarks, we have officers assigned overseas. We're gathering information from them. We're looking at our open-source material that comes in. The analysts that I mentioned are really world class. We have a cadre of about 30 analysts divided roughly evenly between our intelligence division and our counterterrorism bureau. They're from some of the top educational institutions in the country. We have people here from Harvard Law School and Harvard undergraduate and these top schools, and they just do an excellent job of synthesizing information, gathering it and putting it in sort of digestible form. And that's the type of information that's used in a lot of places in the department, but when we have those mobilizations, those deployments of lots of police cars in the morning -- we do that several times a day -- they are getting that information as well. They're being briefed by our inspectors, who are receiving their information from our analysts. So -- but after our terrorism briefing, there's usually some ceremonial aspect -- perhaps a promotion ceremony of some sort. We have 52,000 employees -- we have roughly 36,000 uniformed officers now versus civilian employees, so there's lots of different events that happen during the day. There's crime strategy meetings. I'll go to community meetings. We go to -- I go to community council meetings usually in the evening, and then there's always the possibility of some unscheduled event happening -- officer may be hurt. I spend a lot of time in hospitals. And you know, as I say, no two days are probably exactly alike, but you start off with that counterterrorism brief in the morning.ZIRIN: Now, you've said that you've succeeded in giving the department an international focus, which it certainly didn't have before, and you're noted for being a student of history and thinking outside the box. It was unprecedented, certainly, to appoint as top commissioners people who came from outside the department -- Cohen, Sheehan, Falkenrath. And did this create new problems within the police culture?KELLY: It really created no or very few internal problems because the police department is really a hierarchal organization. It's very well structured. There may be grumbling, but they're going to do what the commissioner wants them to do. I won't necessarily -- (inaudible) -- going on.ZIRIN: I knew you would say that. (Laughs.)KELLY: There was some -- you know, we've assigned people overseas, and there was some I think resistance to that in the federal government -- sort of, "Who are they?" You know, "This s our job; who do they think they are?" But of course, we're a city that's been attacked twice and we want to do everything we possibly can do to see that it doesn't happen again. That all quieted down when Bob Mueller came to visit a few years ago. He had a briefing on what we're doing. I think it's fair to say and he'll say that he was very impressed with what's going on the department, and whatever resistance -- at least overt resistance that was happening from the federal side of the house quieted down. ZIRIN: So certainly immediately after 9/11 there was said to be some tension between the NYPD and the federal agents -- the FBI and the CIA. Since the formation of the Joint Terrorism Task Force do you think that's improved considerably?KELLY: Oh, yes. No, it's improved tremendously.Joint Terrorism Task Force actually started in New York in 1980, so it had been around a while. Now the FBI has over a hundred of them. And basically the FBI is at the core of all of these task forces and other agencies are sort of appended to it -- something that we'd like to change and have it more marbleized. But there is a free exchange of information. And quite frankly, if something happens, nobody wants to be caught holding the bag, so to speak, so that's one of the motivators for the exchange of information. But we have a strong working relationship. I can't say that there's a total absence of tension, but generally speaking we get along well.ZIRIN: Well, there are some amazing anecdotes. There was the hotel bombings in Jordan; there was the Madrid train bombing; there was the London Tube bombing. And NYPD detectives were on the scene almost immediately -- within a very short time. What did they hope to accomplish for New York City? KELLY: We wanted to get any bit of information that's going to help us better protect the city, and we want to get it as quickly as possible. When the London bombings happened -- they happened at 8:00 in the morning. Three of them happened in the subway system; the fourth was 8:52 in the morning on a bus. Now, we're five hours, of course, behind London, so we had our officer embedded in headquarters at New Scotland Yard, and he was able to give us real time information from their command center, because we didn't know -- nobody knew -- whether or not this was part of a worldwide series of attacks. So at the very least what we wanted to do was to give some comfort to the riding public in New York City. So we had enough time, with the specifics that he gave us, to deploy additional resources, to hold on to officers who were working through the night -- give them some basic information to bring on new officers and have them ride on subway trains and deploy them to the stations around the city.With the Madrid bombing -- when that bombing took place we sent our liaison officer from Tel Aviv to Madrid. He arrived that day, and then we sent a team of police officers who are expert in the transit system and how trains are constructed -- we sent them there the next day to get any bit of information that would help us better protect ourselves. What we did do is we found out that the bombs were actually assembled a few blocks away from the train station, so we started our patrols or made certain that our patrols did sort of a perimeter check on all stations further out than the immediate area of the station. ZIRIN: And that was new. Usually they've been known to be assembled some distance away.KELLY: That's right.ZIRIN: Even the first attack on the World Trade Center, they were assembled in New Jersey, I think.KELLY: Yeah. And this is a little bit of information, but you don't know how significant it is when you get it.Now, we did not get a report on the Madrid bombing from the federal government for 18 months. We were able to get our information literally that day, and increasing information. That's just the way the federal government works. I worked there myself for four and a half years. And so it's not really a criticism; it's just an observation. It is just a slower series of institutions that they've assembled down there, and we need to act as quickly as possible here.ZIRIN: Let's take one of the most recent horrific attacks internationally, in Mumbai. That was Lashkar. You had Officers on the scene also, quite -- (inaudible).KELLY: Right.ZIRIN: And what did you learn from the attack on Mumbai on the two hotels?KELLY: The attacks on Mumbai happened -- took 60 hours. They went -- they started on November 26th just a few hours before our Thanksgiving -- the Wednesday before -- and ended on November 29th. And we dispatched our officers literally right after the shooting stopped on November 30th. We dispatched a team of three officers, one of whom had been in Mumbai two years before because there was a series of commuter train attacks in Mumbai. We wanted to get information then, so we sent him to Mumbai. He was actually in Amman, Jordan. We sent him to Mumbai to get information in 2007 and he made some excellent contacts, so we used his contacts again to have him go there and to interview high level police officials -- and they were very receptive -- to visit the crime scenes, and to take lots of pictures. They went to the train station. They talked to the station manager. What we found out -- and we put in a very I think well done comprehensive report that we provided to the FBI on December 5th -- we found that the shooting -- the shooting that was done was very well targeted. We don't think that automatic weapons were used; semi-automatic weapons because there were no bullet holes that were high in the ceiling. Usually when you fire an automatic weapon you have a certain amount of bullets that will go up higher. That the police were overwhelmed; that they simply were not trained to handle this. They were not sufficiently armed. And all of this information was transmitted to an auditorium of NYPD SHIELD members -- about 400 members in our auditorium, with pictures, and our three investigators on the live feed from Mumbai to our audience full of SHIELD members. That day we had a tabletop exercise with all the senior commanders roughly simulating what happened in Mumbai and a actual tactical exercise -- (inaudible) -- in the field where we had our Emergency Services officers engage in a similar Mumbai incident. And that was fed to us by closed-circuit TV. What I was concerned about was a protracted situation such as that where you might have 10 or more individual things going on in New York City, with hostages perhaps being taken. We have 400 officers that are extremely well trained. We think they are the best in the business at what they do -- Emergency Service officers. But if we had a longer-term event, there was concern that we may not have enough well trained people. So as a result of what happened in Mumbai, we've embarked on a training program in heavy weapons for members of our Organized Crime Control Bureau, which is essentially our narcotics division and some other investigative units; our range personnel -- firing range personnel. And we also realized that these attackers were very familiar with the hotels and the targets that they hit, so we've taken our cadre of Emergency Service supervisors, sent them to major hotels in the city with cameras, and they've had tours of all of the hotels primarily in midtown Manhattan, but we're now going out to the hotels at the airports so that we are familiar -- our first responders are familiar with the sort of nooks and crannies of the major hotels in New York.ZIRIN: I can't help but ask, but are your sharpshooters as good as the Navy SEALs? (Laughter.)KELLY: Oh, I hope so. That was some job. So that's some of things we learned from Mumbai. But again, we got there quickly. The lessons were learned as quickly as we could extract them, and then we disseminated it quickly.ZIRIN: You spoke about the radicalization of homegrown terrorists. What goes into a terrorist? I mean, how do they reach them and how do they radicalize people who would otherwise be peaceful?KELLY: That's not -- there's no easy answer. What we did do, under the direction of Larry Finch, who -- former CIA employee who now -- who works for us -- two of our analysts, Mitch Silver and Arvin Bhatt, engaged in producing a radicalization study, and they went to various locations of terrorist events throughout the world. They went to Amsterdam where the Theo van Gogh was assassinated. They looked at our own events here. They went to Australia for the -- (inaudible) -- group. And they gathered a body of information that gives some insights -- this is not the Rosetta Stone, but it's some insight into how terrorists are developed -- these so-called unremarkable people who decide to kill innocent people in their own country. And they came to certain observations that -- usually an event that might trigger this tendency towards radicalization, like Abu Ghraib, which I talked about in my remarks; that there's often a sanctioner, somebody who is not necessarily a religious leader or religious person, someone who they look up to, someone who sort of crystallizes their thoughts. And then there is a fairly -- this process could take a while, but there's a fairly quick decision to decide on doing jihad -- the jihadization process. And we looked at the events -- the Toronto 18, as they're called. That's where there was a -- part of a plot was to -- whether or not it was far-fetched is difficult to say, but they were going to behead the prime minister of Canada. But the sanctioner in that group was actually somebody who was almost a janitor of a mosque in Toronto. So it is not -- there's not a clear template, but at least there's some clarity starting to be given to the process. I advise anybody interested in this issue to go to our website, which is www.nyc.gov/nypd, and this report -- it's a 90-page report -- it's on the website. I think they did an excellent job.ZIRIN: One last question right before I open it up. One has the sense that there's been the increased use of surveillance cameras in not only the war on terror but also antiterrorism activity, but also crime and anti-crime activity. Has that been stepped up, and where are the cameras placed, and do you have people watching them 24/7, and have you found it to be effective?KELLY: Well, I would like to greatly increase the number of cameras that we have in the city. You know, London has like 500,000 cameras. We just put in an overlay of 500 cameras in areas throughout the city in every one of our eight borough commands. They're essentially in higher crime areas, and they have a sign that says NYPD security camera.These cameras are not monitored. ZIRIN: (Inaudible) -- turn the camera on -- KELLY: No, we turn the camera on. (Laughter.)And they're not monitored, but if something happens you can go back and download it and we can run a live operation through those cameras if we so choose. Now, I've mentioned the Lower Manhattan Security Initiative. We are collaborating with private sector in that area, and we hope to have a total of 3,000 cameras -- 1,000 public sector; 2,000 private sector cameras -- brought together. And they will be monitored in a coordination center which is already up and running in Lower Manhattan. That center will be manned by both police officers and private security folks. So we're looking to put in more cameras, no question about it. We're looking to get money from the federal government to help us do that.I want to stress that all of these cameras are in public places. We're not putting them by any stretch of the imagination in areas where there is a reasonable expectation of privacy. You know if you go into a supermarket or into a department store, your picture is taken 30 times. By the way, we have found that this issue always surfaces -- the Civil Liberties Union will bring it up, but there is really not much of a constituency that is against cameras. It's just -- people have accepted it as a fact of life. We've done surveys and 80 percent of the people like the idea of having surveillance cameras in public spaces.ZIRIN: I'd now like to invite everyone here to join in this conversation. By everyone I exclude members of the press because the commissioner has said he will take questions from members of the press after the meeting. We'll ask that the questions come from members. I ask that they be questions, not statements -- one question. I guess you all know the drill: Wait for the microphone, speak directly into it, stand, state your name and affiliation. And I know the commissioner will be delighted to take your questions.Yes, ma'am?QUESTIONER: Thank you. I'm Inger Elliot, IME, Ltd. I wonder if you would comment about Cheney's remarks because you -- (off mike) -- you brought up that in conversation. But I wonder if you might comment about the idea of torture versus getting information from that person. KELLY: Well, I would support the president's position. I don't think we should engage in torture. And it may provide some short term gain, but I think in the big picture it's not helpful. In the overall efforts, I just don't think it's the way we should be doing business.ZIRIN: Yes, sir?QUESTIONER: I'm Patrick Burns, Euclid Systems. Commissioner, the vice president has suggested that -- our former vice president has suggested that our president's actions have increased the risk of catastrophe. Would you comment on that? KELLY: I really -- I don't know in what context he said that. I know he said that, but -- say -- the president's actions releasing those memos -- is that what you're talking about? QUESTIONER: I think so.KELLY: Releasing the memos? I would hesitate -- QUESTIONER: He said increase the risk -- (off mike).KELLY: I really can't comment on that. I'm not certain exactly what he's referring to. But I would say that it's a tough decision for the president to make. I probably would have advised not to release those memos because I think it can undermine our relations with our allies, with other countries in the future. But I understand there was lots of pressure to do that. ZIRIN: Roland?QUESTIONER: Roland Paul. Maybe I can focus this general question. Was any information gained from -- I may mispronounce these guys' names -- Zubaydah or Mohammed Sheikh Ali or any of the other 26 who are known to have received aggressive interrogation techniques -- was any information received from them that was helpful in preventing or foiling a plot against New York City?KELLY: I believe that answer is yes. I mean, that information is out in the public domain. MOREKELLY: (In progress) -- when you say the president's actions releasing those memos -- is that what you're talking about?QUESTIONER: I think so.KELLY: Releasing the memos. I would --QUESTIONER: (Off mike.)KELLY: I really can't comment on that. I'm not certain exactly what he's referring to. But I would say it was a tough decision for the president to make. I probably would have advised not to release those memos, because I think it can undermine our relations with our allies -- with other countries in the future. But I understand there was lots of pressure to do that.ZIRIN: Roland.QUESTIONER: Yeah. Roland Powell (sp), a lawyer.Maybe I can focus this general question: Was any information gained from -- I may mispronounce these guy's names -- Zabaydah or Mohammed Sheikh Khalid or any of the other 26 who are know to have received aggressive interrogation techniques -- was any information received from them that was helpful in preventing or foiling a plot against New York City?KELLY: I believe that answer is yes. I mean, that information is out in the public domain.Khalid Sheikh Mohammed came forth with information and that information was helpful in identifying Lyman Faris, who was dispatched over here to scout out the Brooklyn Bridge.ZIRIN: Ella.QUESTIONER: Helen O'Ellicott (sp) with -- (inaudible).Could you talk a little bit about the NYPD's interaction with other police departments around the country and the mentoring role it might play with other large cities -- for example, L.A. -- and also along the U.S.-Mexico border?KELLY: Well, we have a strong relationship with a lot of cities. And a lot of agencies send people here to New York to look and examine what we're doing to take away what they think is helpful to them and that includes Los Angeles.The city that probably looks the most like New York is London, quite frankly, because of its topography and population -- about 8 million people. So we have a very strong working relationship with London.There are people here all the time exchanging information and we're certainly open to that.Now, you talked about the border -- I'm sorry -- southwest border?QUESTIONER: (Off mike) -- interactions with the cross border -- (off mike).KELLY: We don't have that much contact, quite frankly. I used to be the Customs commissioner and I had a lot more focus in those days on what was going on on the border. But we don't have any direct relationship with law enforcement agencies on the border. If something arises and we need information, you know, there's a network in which we can get that information. But I can only tell you that, you know, if people ask me what's the effect of all the violence that's going on in Mexico -- what does it mean here in New York? What we see is an increase in price in drugs and a diminishment of the quality of drugs that appear on the street.ZIRIN: Yes, ma'am.QUESTIONER: Thank you for the very lucid and valuable comments. I'm glad to know you're taking care of us!I'm Carole Brookins; I'm former U.S. director on the board of the World Bank. I moved back to New York after 25 years.I do have a question regarding this current version of jihad. And so much of what began was linked to the Palestinian problem and the Arab-Israeli problem. Hypothetically, the Arab-Israeli is resolved 12 months from today. Is this version of jihad going to be diminished or does it have a life of its own?KELLY: Unfortunately, I don't think it's going to be diminished. I think there will always be reasons if you want a reason. And I think there are people out there who want to hurt us and want to hurt us badly. New York is a target that gives them everything they want -- it's the communications capital; it's the financial capital. And I'm pretty parochial. I'm looking at the five boroughs here. But if the Israeli-Palestinian problem was solved tomorrow, unfortunately I think you wouldn't see much of a reduction at all in that desire to come here. There are hotbeds of problems throughout the world. Obviously we talked about the FATA in the northwest territories of Pakistan. It's an area of real concern for us now and has been for quite awhile. Pakistan is an unstable country and what happens there can greatly impact us in this city. So no, unfortunately I think that's -- a lot of people say that. I know I hear that, and I certainly hope something is worked out, but I don't think it's going to change the overall threat very much.ZIRIN: Yes, sir.QUESTIONER: Thank you. Dick Huber from Antarctic Shipping. I also enjoyed your remarks.The mayor has made gun availability a big issue. And of course, the National Rifle Association blocks every attempt at passing any meaningful legislation.Do you think that with the new government there's any chance that something might be done to control this wild proliferation of firearms in our country -- and in New York City specifically?KELLY: I hope so, but I'm not optimistic. Gun control is the third rail of politics in Washington on both sides of the aisle. That's just the reality of the situation. The mayor has done a terrific job. He's really coalesced hundreds of mayors around the issue. The most immediate challenge is to pass a law that will take away what we call the Tiahrt Amendment. Tiahrt is a congressman from Kansas -- Wichita, Kansas. And he has put in an amendment or a rider to the Bureau of Alcohol, Tobacco and Firearms budget, funding -- and he's done it for several years -- that prevents them from exchanging information or allowing information to be exchanged among law enforcement agencies concerning where guns are coming from, where they're purchased.I mean, that's an indication of the power of the NRA that you're able to prevent law enforcement from getting information -- exchanging information that will help us investigate gun crimes. So I'm not particularly optimistic, as I say, about a major change happening as far as national gun control strategies.ZIRIN: Yes, sir.QUESTIONER: Thank you. Brett Spar (sp) of Ace Link Capital (sp). Thanks for joining us, Commissioner.As you know probably better than anyone, there's been a lot of debate around our readiness for a mass evacuation of Manhattan Island in the event of a chemical, nuclear, biological attack. And we've either read or heard that the tabletop exercises have not ended well -- for example, if the train tunnels are not accessible.Can you just comment on our readiness today for such an evacuation and the circumstances under which it might occur?KELLY: Well, evacuation is a major, major challenge -- no question about it -- and I certainly wouldn't want to sugarcoat it.There are plans in place, basically, where the city is cordoned off into sectors -- about 100 sectors. Obviously, one thing that we're fortunate to have is an effective mass transit system. That's going to be helpful in any evacuation.I mean, to evacuation a city of over 8 million people is extremely difficult to do and would take a long time to do it. Now, to evacuate parts of the city would obviously be much easier. And there are plans -- plans coordinated by the Office of Emergency Management. We have major role in it; the fire department has a major role in it. We exercise these plans -- hurricane response plans will be exercised and some of them will involve evacuations.So we can evacuate portions of the city, but just the idea of evacuating the entire city -- and where do you go when we talk about evacuation? You know, you go through New York City. When you evacuate Long Island, how do you do that? You know, the Long Island portion of New York City where do you go? Do you out to Long Island? Do you go upstate? These are all difficult issues and they're thought about, but there's no easy answer to the problem.ZIRIN: Yes, sir.QUESTIONER: My name is Michael Scholl of Scholl & Associates.Now, Commissioner, you are uniquely qualified to compare what New York City is doing and what is being done in Washington. And I think the consensus not just here, but a book has been written about the fact that New York is doing a better job in much of counterterrorism activity.If you had the power to change one thing in Washington in this area, what would you recommend?KELLY: (Laughs.) There's a loaded question!You know, what we're doing here suits us. We're a city that's been attacked twice. We had, as I mentioned, seven other plots. So what we're doing is appropriate, in my judgment, for the city. There are some things the federal government simply can't do.One of the things that we're able to do is to use human beings to gather information for us. And that's partly as a result of our tremendous diversity -- the diversity of the city and the diversity of the department.Out of the last seven police academy classes, each of them had at least 900 recruits in that class. We had graduates born in 50 or more countries, which is simply phenomenal. So this gives us, as I said, great diversity, great language capability, the ability to do some sensitive investigations. It's very difficult for the federal government to do that. Federal investigative agencies just don't have the sort of compact universe that we're dealing with. So we're fortunate. We're fortunate, but I really don't want to criticize federal agencies. Having worked there, I know that the playing field is a lot different. Congress has a lot more involvement in day-to-day operations in Washington than, say, the legislative body here in New York City. It's just a more complicated environment to work in.But we are blessed in the diversity of this city, and consequently the diversity of our department, is our strength. And we're using it to make the department even better than -- every year it gets stronger and more effective, in my judgment.ZIRIN: Lynn Cher (sp).QUESTIONER: Thank you.Commissioner, I wonder if you could comment on the trial -- the upcoming trial -- of the fellow from Somalia, the pirate, and what if any threat that might have to this city. There have been some who have said, do we want another high-profile terrorism trial right here in New York?KELLY: You know, we have a ways to go before we get to the trial. He just showed up the other day here.You know, I don't see it as raising much of an issue here. I don't think it will increase the threat level very much if any. You know, these are robbers. These are not terrorists. These are people who are trying to get money. And so far, they have not been associated with any terrorist group. There is a fairly strong terrorist operation in Somalia -- al-Shabab. And it's something that we keep our eye on. There are pockets of Somali residents here in the United States -- relatively few in New York, but in Minnesota and in Maine and Toronto has a very large population. But our analysis shows that the pirate activity and the terrorist activity, if you will, are separate and very much apart right now. Could they come together some time in the future? It's possible, but I just see this young person as a robber trying to get money in a very poor environment.ZIRIN: The lawyer says he's a juvenile delinquent.KELLY: Well, I guess the question is how old are you?QUESTIONER: Hi. Inishnal Wami (sp) from McKinsey.One of the things about the Mumbai attacks was how the folks came in by the sea and attacked from the seawall. You speak about New York City being an archipelago with a lot of seafront. How do we protect ourselves there and what the plans are?KELLY: Yeah. We have a very strong working relationship with the Coast Guard. We have our own harbor unit. It has a total of about 40 vessels. We have some pretty neat gear. We have a little submarine that we use to go under and take a look at ships that are coming in. We even board the Queen Mary, believe it or not, when it's coming into harbor. We do it out by Ambrose Lightship.So we work, as I say, closely with the Coast Guard. We are, quote, "designated" to have the authority that the Coast Guard officers have in boarding ships. We're pretty vigilant. The Coast Guard is building a new command center here in New York -- a coordinate center. We'll be participating in that.We have a lot of focus and a lot of attention paid to the water of New York -- the waterways. We have almost 500 miles of coastline in New York City. We have our little surges, if you will, where boats come together. We have that with our radio cars and we have it with our harbor craft as well.So I think -- again, Mumbai is, you know, the police -- they acknowledge that they didn't respond well. We are in a much better position to respond if, God forbid, anything like that happens here. People on our boats are all heavily armed and they're experienced in using those weapons.ZIRIN: John.QUESTIONER: John Templeswank (sp).I really want to talk a bit about -- have you talk a bit about your foreign operations. To what degree are you cooperating well with the CIA and the FBI in your foreign operations or are there turf problems?KELLY: Yeah. We operate, I think, well with both agencies. We have actually someone from the CIA assigned up here. He works in our fusion center that we have. I get briefings from this individual, David Cohen, 35 years in the CIA -- actual relationship with the agency.As far as the FBI is concerned, we have 120 of our detectives working on the joint terrorist task force. Our detectives went to Mombasa and brought this young man back with FBI agents. So we're working very, very closely together.I think the notion that there's a lot of friction between the federal agencies and NYPD just is not the case. You know, sometimes you'll have two agencies who want to do a good job and sort of where the rubber meets the road there may be some tension. But at the higher level, everybody gets along, and generally speaking, there's mutual respect.CIA, DIA, FBI, ICE -- which is the Customs enforcement unit -- Bureau of Alcohol, Tobacco and Firearms -- we work with all of these agencies every day. We do joint operations with them every day. So the relationship, in my judgment has never been better. And I spent a long time in the New York City Police Department. I was in the federal government where I had federal agents that were reporting to me and now back in the police department. I think our relationship is better now than it's ever been.ZIRIN: I'm afraid we have to wrap up. And I want to say thank you, Commissioner Kelly, for sharing your views with us this evening. Really remarkable insights. And as New Yorkers, we should all thank you for being Ray Kelly and for protecting us. And this is really, in the real sense, where the rubber meets the road in government and you certainly personify that. (Applause.)KELLY: Thank you, Jim. Appreciate it. (C) COPYRIGHT 2009, FEDERAL NEWS SERVICE, INC., 1000 VERMONT AVE.NW; 5TH FLOOR; WASHINGTON, DC - 20005, USA. ALL RIGHTS RESERVED. ANY REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION IS EXPRESSLY PROHIBITED. UNAUTHORIZED REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION CONSTITUTES A MISAPPROPRIATION UNDER APPLICABLE UNFAIR COMPETITION LAW, AND FEDERAL NEWS SERVICE, INC. RESERVES THE RIGHT TO PURSUE ALL REMEDIES AVAILABLE TO IT IN RESPECT TO SUCH MISAPPROPRIATION. FEDERAL NEWS SERVICE, INC. IS A PRIVATE FIRM AND IS NOT AFFILIATED WITH THE FEDERAL GOVERNMENT. NO COPYRIGHT IS CLAIMED AS TO ANY PART OF THE ORIGINAL WORK PREPARED BY A UNITED STATES GOVERNMENT OFFICER OR EMPLOYEE AS PART OF THAT PERSON'S OFFICIAL DUTIES. FOR INFORMATION ON SUBSCRIBING TO FNS, PLEASE CALL CARINA NYBERG AT 202-347-1400. THIS IS A RUSH TRANSCRIPT.
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    DAVID WESTIN: Good afternoon. I'm David Westin, and I'm privileged to be able to be here with the secretary today. I have a few remarks and I have a script here. I'll make sure I get them all right. First of all, welcome to today's Council on Foreign Relations meeting. Very important: Please turn off -- I just did -- your cell phones and your BlackBerrys and any other wireless devices. It's not just so that we don't interrupt the secretary when he's talking, but also, it will interfere with the amplification system in the room. And I want to remind everyone that this meeting is indeed on the record. And the Council of Foreign Relations, I think, will be putting it on their website, as I recall. And with that, the way this works, for those of you who may not have been here before, is we'll talk for about 30 minutes or so and then we'll open it up to the floor for all of you to ask questions. But before I ask the secretary any questions, first of all, let me introduce the man who needs no introduction: Secretary Chertoff. You all have read, I hope, the brief synopsis of his distinguished career. He's been a distinguished law enforcement official for some time. And he gave up his lifelong tenure as a 3rd Circuit Court of Appeals judge to become the second secretary of Homeland Security where he's been for almost four years. SECRETARY MICHAEL CHERTOFF: Yes -- almost exactly four. WESTIN: And the two things that I think are true, that are not in your CVR, number one, he clerked for not only Justice Brennan -- the distinguished Supreme Court judge -- but also Murray Gurfein, that a number of you in the room I suspect will remember, a wonderful 2nd Circuit Court of Appeals judge whom I knew. And he also, I think this is true, is the son of and the grandson of Talmudic scholars. Is that a fact? SEC. CHERTOFF: Well, Rabbis. I'm going to stop you when you -- (off mike). (Laughter.) WESTIN: So with that, we'd love to hear your opening remarks and then we'll ask some questions. Thank you very much for being here. SEC. CHERTOFF: David, thank you. And thank you to the Council for hosting me. I think I've been here once before and I've also had the opportunity to meet with members of the council down in Washington as we've talked about various homeland security issues. I was going to begin by recalling a fair day in the middle of a September during my time in office when there was a cataclysmic event. And as a consequence of that event, there were really profound changes in the way the American government operated. The executive took some steps -- excuse me -- that were in the view of some an unprecedented exercise of power and there's criticism for that. The legislature moved some major legislation and there's a little bit of buyer's remorse about that. There were all kinds of legal issues that were thrown up. There were mistakes that were made. There were claims that there wasn't enough transparency about what was going on. And you probably think I'm talking about September 11th, 2001, but I'm actually talking about September 15th, 2008 -- the financial crisis -- because in the wake of the financial crisis, the fettering of Lehman and the cascading meltdown, you saw much of the same kind of vigorous government action, and some of the same criticism of that action, that occurred on September 11th, 2001 when the World Trade Center physically fell down instead of financially fell down. This past September, after the collapse of Lehman and the beginning of the meltdown, we had the unprecedented passage of the TARP, which I think began as three pieces of paper. We had members of Congress going to the executive and asking the secretary of the Treasury to change the rules on his own -- simply lift some of the restrictions and do things that hadn't been originally contemplated or promised. And in fact, the secretary -- under the president's leadership -- took very vigorous action. That action has not been free from criticism. Mistakes have been made. There have been complaints about a lack of transparency about the way the TARP is operating. I mean, even now as we speak, there is a demand for ever more dramatic, energetic and fast action to deal with a crisis that threatens the underpinnings of our financial system. Pretty much all these things could be said about September 11th. In the wake of September 11th, Congress passed the Patriot Act. It actually spent much more time on that then the TARP, but even so, people have complained from time to time that it was too quickly. The executive acted very vigorously. The president used all of the powers at his disposal and there's criticism of that. There are not doubt that some mistakes were made and there's certainly been complaints about lack of transparency. So what's my point? My point is not that we've done the wrong thing in reacting to the financial crisis. My point is that in the middle of a crisis, in the middle of an emergency you have two choices: You can either act swiftly and decisively, and inevitably that's going to be less than perfectly transparent or perfectly executive; or you can spend an awfully long amount of time thinking about what to do, in which case you will have a mounting crisis of confidence and a failure and paralysis in government. And so my contention is that the steps that we took on September 11th -- and the steps we took on September 15th -- are both right in the context of an emergency. And just as there's been some buyer's remorse after September 11th and some after-the-fact hindsight criticism after September 11th, I guarantee you that in two years or three years, every -- probably not going to wait that long -- everything that was done in the emergency after September 15th and everything that'll be done in the next sixth months will be subject to the hindsight and the luxury of criticism after the fact. So my point is, all emergencies in many ways are not alike. And the test is not -- the question is not the specific measures. The question is: Will government take vigorous action to stop the bleeding, to prevent further problems along the lines of the original emergency and perhaps most fundamentally, to restore public confidence? I believe the answer is that government should do that. But I also believe that those who make those decisions must realize that just as night follows day, they will surely be criticized after the fact all of the flaws and imperfections and speedy execution will be held up under a spotlight. So bottom line is don't get in the business of dealing with crises and emergencies if you're not prepared to deal with the heat after the fact. And that's my opening. WESTIN: That's very interesting and persuasive in many respects. I want to ask about a few things, but before that let me pick up on what you're talking about, because I think I take your implicit point: that those of us who aren't in the middle have it easy to sit back and look at it and second guess and criticize. At the same time, sometimes it might appear to those of us on the outside -- and you can take 9/11 or this last September -- sometimes might have the impression that those who are making decisions get quite defensive afterwards. I mean, what is -- is there a useful part to that second guessing and criticism, not just a carping part? SEC. CHERTOFF: No, there is, David. And I've said this before, so I'm not making news and I'm not -- WESTIN: It's okay to make news. Go ahead! (Laughter.) SEC. CHERTOFF: I'm not making news. I'm not being a Johnny-come-lately revisionist historian. I think after the initial emergency measures are in place, it is appropriate to stand back at some point and look and recalibrate at what you've done. I gave a speech -- I quote myself only in order to put a prior consistent statement on the record. I remember in 2003 when I was a judge I said -- I gave a speech and I said, look, we've done, I think about as good a job balancing in the war against terror as we can, but it hasn't been perfect. So the time has come to get together with Congress and to work to recalibrate some of the measures. We may decide some of the things we did were not enough. We may decide some of the things we did were too much. We may decide some of them can be done better in a different way. And I think there's a little bit of a missed opportunity on both sides of Pennsylvania Avenue, because it wasn't -- it didn't seem possible to get together with Congress and do a dispassionate revision and adjustment of what had been done after 9/11. That may simply reflect the fact that there was an election campaign coming up, but it may be the political temper. And one of the problems with some of the poison in Washington is an inability to do that. So I believe that now with a new administration there's another opportunity to recalibrate. Recalibrate does not mean abandon, throw over and expunge. And if anyone thinks that that's appropriate, I think that would be a great misjudgment. But I think it is appropriate to recalibrate. And I will also venture to say that it will certainly be true in a year or two years it will be appropriate to recalibrate what's being done in the financial area, because there'll no doubt be some mistakes. WESTIN: So with that, let me start with some specifics and let's start with the news. All of us woke up this morning and heard that Osama bin Laden apparently -- as far as we can tell -- put out a new statement that had to do with Gaza and implicitly about the president-elect and things. We've seen a number of these statements come out, and for those of us who are not on the inside, I think we all puzzle over them. I mean, do they really have significance? Is there anything to be read into them? And I'm sure there are limits on what you can say, but either about this statement or generally, when something like that comes out, do you look for things in that? Does that have any real significance for you or is that just a propaganda statement? SEC. CHERTOFF: Well, we always look at statements to see is there some hidden code. Is it indicative of some operational thing that's going to occur? There's been the theory that from time to time, when bin Laden has made statements about how he's given the West a chance to convert and become his religious disciples and we've turned that down, that what he's trying to do is essentially create the predicate or the justification for a weapon of mass destruction attack by showing he gave us one last chance to come over to his side and we didn't do it. But I can't think of a time that we've actually found any real operational significance in the statements. You have to look at the statements as part of the battle of ideas. And that's where a lot of the long-term strategic struggle is. And what's interesting to read in the statement is what is he talking about? Because it tells you what they're feeling defensive about. For example, in the last year or so there's been some push back from a number of clerics, who had originally supported a very extreme form of Islam, beginning to argue that this is actually hurting innocent Muslims and questioning whether, in fact, the violence was appropriate under Islamic law. This really struck at the heart of bin Laden's message and his ideology. So Zawahiri got on and attacked the clerics and he issued videotapes talking about how the clerics are wrong. And there was actually debate about this, because it was about the legitimacy of the ideological movement which bin Laden is leading. Likewise, about a year or so ago, he gave a speech which he -- in which he tried to hitch his star to a whole lot of things: globalization, economic problems. And he's always very big on tapping into current events. I view that as a little bit of a sign of insecurity, because I think what he's trying to do is get at the head of whatever parade is marching down the street. So I think there's a lot of value from an intelligence standpoint strategically, but I don't -- at least in my experience -- haven't yet seen these statements as a sign that, you know, the missiles are coming or the bombs are about to go off. WESTIN: Another specific: Mumbai around Thanksgiving time. What, if anything, did we learn from that? What did that teach us? SEC. CHERTOFF: Well, I'm happy to say that we anticipated the possibility of this kind of an attack in a general sense, because we did launch a small boat strategy here in the United States that's precisely designed to deal with small boats being the attack method. And of course, we've seen that in the past with the USS Cole or the USS The Sullivans. So it was not a surprise to have this kind of an attack. It was well executed. I think it was probably a wake up call to hotel companies and others in the travel and entertaining business and the softer target area that they can't assume that all attacks are going to be directed at public transportation; that they have a responsibility to prepare themselves for both making harder to attack a hotel or a restaurant or a social event, but also to have resiliency in place -- to have a plan in place that allows people to quickly respond and recover. And I think one of the things that emerged in the press was that the Indians didn't have a unified plan that enabled a swift response. And actually, frankly, a lot of what our department is designed to do and has done over the last few years is to build that unified plan that gets the responders and the preventers and the law enforcement -- everybody at the same table with a single, integrated planning system in place. WESTIN: How far along in that spectrum are we, do you think? SEC. CHERTOFF: For much -- WESTIN: When you take the soft targets particularly? SEC. CHERTOFF: Certainly with respect to things in terms of the government's responsibility, the government's domain, I think we're quite far along. We're not done, but we've made a lot of progress. If you look at the private sector, where we partner through our department, you get a mixed picture. Some entities like chemical plants we've looked at very closely. They're actually in -- we've tiered them according to risk and they've actually made a lot of progress. We've done the same thing with train lines and things of that sort. When you get to hotels and really soft targets, I think you've got a real range of reactions. Some, I think, are very good. Some, I think, have not paid a lot of attention to it. We in the government can't protect all the hotels. You know, we do interact with that sector of the economy. We give them guidance; we give advice. We have put out information about lessons learned from Mumbai so that people can assimilate them. But I worry that in this economic environment it's easy to take the view that you should spend your money on the immediate concern you have, which is your payroll and your supplies and the things you need to run on a day-to-day basis and that issues like security can be pushed off. The difficulty with that is it's very unpersuasive the day the attack comes and then everything collapses. Because once you have a serious attack with a loss of life, it's going to be fatal -- it can be fatal or almost fatal to the business, depending on what it is. So it's important, even as we worry about things like the financial crisis, to be very focused on the need to continue to invest against perhaps low probability, but very, very high consequence in all of our personal lives and our businesses. WESTIN: But should we be expecting to see increased security at shopping malls, at hotels? I mean, after -- it 2006, right, with the plot with the liquids? SEC. CHERTOFF: Right. WESTIN: And after that, it changed air travel. We all have to have only three ounces and you have to put it in a transparent bag and all of that. After the Mumbai thing, I don't think -- I didn't see much of a change at all. In other words -- I know there was exercise here in New York City where the mayor and the police chief did something the hotels, but we don't see anything. Maybe it's behind the scenes. SEC. CHERTOFF: Well, I think there are two answers to that. One is the architecture of the aviation system's different than the architecture of the travel and leisure industry as a whole. Aviation is centralized. The areas that it takes place are clearly identifiable. It also happens to be a federal responsibility, so we expect and we're authorized to put federal assets as well as local assets into security. When you get to hotels, they're in private hands. We don't have federal police that go out and patrol hotels and malls. And frankly, local police, although they may do some of that -- and I know here in New York they do pay attention targets that they perceive as potential high-value targets -- even so, we don't have the capability, certainly at the federal level, but probably most local levels, to actually do the work of patrolling. That's really got to be done by the owners. But the other thing is the architecture of a hotel; the architecture of a shopping center is such that you can't run it the way you run an airport. If you put magnetometers and had long lines in the shopping center and your hotel, you're not going to have much business. So it's a balance and that's why we talk about risk management. And risk management means not elimination of risk, not guarantee against risk, but it means what is the appropriate investment in security that doesn't actually subvert the basic function of what it is you're trying to accomplish? And it's tricky. It's an art, not a science, because you're leaving a little vulnerability because you can't afford to destroy your business in order to protect it. WESTIN: So turn to the more general -- we're talking about risk management. Looking back on your tenure, first, what did you accomplish or what do you have in place that you most want your successor -- and I know you know Napolitano is replacing you. What do you most want her and the agency to continue to do or to expand on? What is important to you in your legacy that it not go away? SEC. CHERTOFF: I think a couple of things. I think the biggest would be maybe the screening of our borders -- the ability to have much better visibility to who comes across our borders than we ever had before. It's not a job that's done, but it's a job where an enormous amount of progress has been made. Let me take you back to before 2001. Before 2001, we did not capture the fingerprints of every visitor coming through our airports. Now we not only get their two fingerprints, we get their 10 fingerprints. The value of this is we can compare it against latent fingerprints that we pick up in safe houses and battlefields all over the world. And we can identify someone who's been on a battlefield, whose name we don't know, but who will turn up when they cross the border or when they apply for a visa when we match their fingerprints. And we have found people ranging from criminals to people who are -- there was one fellow whose fingerprint appeared on a piece of paper in a safe house where a terrorist plotting that occurred in Europe. And he applied for a visa and they picked up the fingerprint when he gave his fingerprints at the visa office. It turned out, as it happens, there was an innocent reason why his fingerprint was on that piece of paper in that location, but that's exactly what you want to know. So that's an important program. We now gather commercial information from the airlines coming across the Atlantic and the Pacific that tell us some basic data about everybody who's coming into the country -- how they purchased their ticket, their contact information, their previous travel segments, things of that sort. That enables us to create linkages between people whose names may not be on a watch list, but who are connected to someone who we know to be a terrorist, because for example, they have a common source of payment or because they traveled together on two prior segments of a trip. We had a case recently where we detected a person who's part of a terrorist organization using precisely that data, and that person is now in custody. So that's a proven technique that actually works. In terms of our scanning at ports: We now scan for radiation at virtually 100 percent of our container cargo companies. We didn't have that prior to 2001. And even between the borders -- although this is a matter of some controversy -- we have much -- we've doubled the Border Patrol; we've built tactical infrastructure and technology the likes of which the Border Patrol never dreamed of. And that has resulted in a reduction not only of smuggling of humans coming across, but drug smuggling has gone down. We're actually becoming more of a maritime domain through these semi-submersible kind of half submarines that the Coast Guard keeps intercepting. So to me that screening, which is I think a significant part of the reason why we are seeing a tax in Europe and in other parts of the world that have not been successful here, I think it's very important to keep that going. WESTIN: Okay, what's the flip side? What's the thing you didn't have time to get to or it didn't go as far as you'd like that you'd most like them to do as they come in? SEC. CHERTOFF: David, we were late on the cyber security because it was hard for us as a department to figure out how we could be adding value in cyber security, given the fact that the Internet is almost entirely in private hands and is culturally very resistant to government regulation and government intrusion. And so the question was, you know, we created a forum for people to exchange information. We had a team called U.S. SERT, an emergency reaction team that was capable of giving a warning when we knew an attack was underway and helping people figure out how to deal with it. But I felt it kind of weak tea, given the threat. About a year and a half ago the director of National Intelligence and head of NSA met with me and we talked about, was there a way we could combine their capabilities and our authorities in a fashion that would preserve their domain and prevent them from encroaching into a civilian domain, but that would give us the ability to really bring some advanced tools to the table. And the consequence of those meetings and a lot of very, very good planning among a number of agencies including DOD and DOJ and our own agency, was a strategy for cyber security, which the president got personally very engaged in and launched in January of 2008. We've made a lot of progress in that. We have reduced the number of vulnerable entry points to government domains. We are beginning to deploy the next level of our intruding detection capability that gives us real-time warning, and we're working on what I will call the 3.0 version of this, which would actually give us the ability to intercept malicious attacks before they can actually hit the target. So we've made a lot of progress but there's a lot to be done, not only finishing the deployment but helping the private sector on a voluntary basis with some of the techniques we've developed, dealing with the issue of quality assurance for the software to make sure software doesn't become a basis for people to implant Trojan horses or other kinds of malicious software when you buy the computer, and also raising the general level of protection against insiders. So I would say that if I was going to devote a priority over the next year or two, it would be to making sure that we continue to build on the momentum of last year in the cyber area. WESTIN: When I talked to you earlier in your tenure in your office in Washington and I asked you the question, what's the biggest threat, you said it's -- as I recall, if my recollection is right -- a weapon of mass destruction on U.S. soil by a terrorist group. Has your view changed since then? That's probably three years ago. SEC. CHERTOFF: No, it's consistent. WESTIN: Is it? SEC. CHERTOFF: It is consistent, and I want to be careful to define "biggest." WESTIN: Right. SEC. CHERTOFF: "Biggest" doesn't mean most likely to happen. It means if you look at probability, vulnerability, and consequence as a formula for risk, although the probability is lower than other attacks, we are quite vulnerable because it's the nature of a weapon of mass destruction that it's very hard to protect against and the consequence can be astronomical. So a biological weapon or a nuclear weapon would be, to my mind, just light years beyond what we've experienced. And from my standpoint, while local law enforcement and state authorities do a good job with homegrown terrorism kind of -- if I can use the term -- garden variety or routine types of terrorism, the federal government is uniquely situated to deal with the issue of coordinating on a weapon of mass destruction. Now, the good news is I don't think this is around the corner. The bad news is the investments that we need to continue to build protection and resiliency against a weapon of mass destruction are long-term investments. And that means we have to make them now even though the consequences and the need for them may not be felt for five or 10 years. And I was talking to Pete Peterson a few minutes ago about the financial question, the issue of, you know, why we don't get with long-term problems now. Well, this is the analogue to the get (ph) crisis and the financial crisis in the physical world. If you don't invest in the capability to refine detection or protection against these kinds of weapons of mass destruction, when the day comes that it's around the corner, you're not going to have the time to deal with it, and then the consequences will be catastrophic. So, to me, just as I think we've got to deal with our economic ticking time bombs, this is the kind of physical ticking time bomb we have to invest against. WESTIN: You say it's not the highest probability, or it's not around the corner I think is what you said, sometimes, though -- in fact, we had one in the last, I think, two weeks or so -- there are reports that come out from academics and others that actually sometimes put percentage numbers against the likelihood of a nuclear device or a biological attack, and usually it's a pretty high percentage within a pretty short period of time: In the next three or four years there's going to be a 50-percent chance. You must look at those. I mean, is it -- are they worth the paper they're written on, in your opinion? I mean, what are they based on? SEC. CHERTOFF: Well, first of all, I think when you actually try to assign a percentage -- it reminds me when I was a trial lawyer, you know, I had clients that would say to me, what's the percentage chance I'm going to win the case? I'd go, 82.5 percent. (Laughter.) Now, truthfully, that's unverifiable. I mean, you either win or you lose. You're never going to know whether you were in the 18 percent or the 82 percent. So I don't think you can percentage qualify it. I do think you can make some broad generalizations, which I think are consistent with the most recent report. A nuclear device is probably the hardest to make -- the hardest type of weapon of mass destruction and therefore the least probable, unless one were stolen or -- and this is obviously the biggest concern -- unless a country which possessed the nuclear device were to make it available to a terrorist group or deliver itself. That's why we obviously look at proliferation as essentially the handmaiden of this kind of weapon of mass destruction. The picture with respect to a biological weapon is not quite a rosy, if I can describe anything as rosy. We've had a biological weapon. We've had the anthrax attacks. We know it is possible to make anthrax from ingredients that occur in nature, not like you have to refine it like enriched uranium. And it's a question of know-how and weaponizing. So the people with the know-how are the threat, and it's very, very difficult to detect a biological weapon because you can carry it in in a very, very small vial, or you could even make it, if you have the know-how, here in the United States. So a key element is the ability to respond and mitigate. The good news on most of these biological weapons is we do have countermeasures and antidotes. The bad news it's hard to distribute them. We've got big stockpiles, but how do you get it in the hands of people, perhaps in a 24-hour period in the big city? And that's why I've argued for a plan of actually letting at least some populations have what we call medical kits -- you know, med kits -- that would have in those kits some of the most likely countermeasures for a biological attack. You would give it to people, maybe first responders -- we're already doing this with some people in the post office -- and maybe you distribute it in the general population and give it to businesses, and the idea would be when the balloon goes up you would tell people, now you should, as a precautionary measure, take some Cipro or take something else. Some people would say that's alarmist, and my problem is that until it happens it's going to sound alarmist. Once it does happen it's going to seem like common sense, just like about a year ago people would have said it's alarmist to believe that, you know, the Dow is going to fall several thousand points and the housing market is going to crash. We've now discovered that it's common sense to assume that. So, again, this is part of my mantra of let's make those investments now. WESTIN: Terrific. Thank you. So we could keep talking but it's your turn. I would ask for -- if you want to ask a question, put up your hand or stand up and wait until the microphone comes to you. And then if you'd identify yourself and your affiliation, and try to keep it to one question if you would. Talk right in the mike. So why don't we start back here? There's a lot of hands in the air, but we'll start there and I'll work my way around. Yes, sir? QUESTIONER: I'm Gary McDougal (sp). You know me from UPS. You deserve our thanks because in the last four years we've been okay, and it's hard to get rewarded for nothing happening. And so I think we need to recognize that. My question relates to connecting methods of interrogation to your information. Can you tell us if the current methods of interrogation have in fact produced valuable information for you that has minimized the risk of attack? SEC. CHERTOFF: Well, I'm probably not best situated to answer that because I'm the consumer of information, so whatever information is obtained, whether it's from signals intelligence or human intelligence or interrogation, I'm interested in the product. I don't always know -- in fact, I'm likely not to know exactly how it was obtained. So I have to rely, therefore, on someone like Mike Hayden said. Mike Hayden, the CIA director, has said that the methods of interrogation have produced really positive results that have led to plots being disrupted and things of that sort. You can always ask the question, well, was there another way of getting it? And the answer is it's hard to prove a negative or a counterfactual. The challenge you have is some people you can woo with honey; some people you have to, you know, put a little pressure on. Lest we be too delicate about this, I want to remind people, our criminal justice system, the one that is presided over by our federal courts and has repeatedly been upheld by the Supreme Court, doesn't allow physical coercion, but it does allow an awful lot of coercive interrogation, in a sense what we call plea bargaining. What plea bargaining is -- and some of you may know this very well -- what plea bargaining means is you have a very heavy charge over somebody, probably one that will send them to life; sometimes it will send their family away for life, and you basically strike a bargain where you say, I want information in return for reduced charges or you're going to go away to jail for the rest of your life. Now, that's not physical coercion, but anybody who thinks that "love bombing" the subject is wrong. That is very coercive. You are putting enormous pressure on people to get them to cooperate, but it's okay under our system. I might tell you, by the way, if you go to Europe, that's considered a barbaric system, and they would probably argue that system is the equivalent of, you know, abuse. So I guess I would say to you there's a long debate to be had by others, not me. I can only tell you the results we've gotten from all the techniques we've used -- and I can't always tell you which one leads to which result -- has given us our real actionable information. The last thing I would say is this, which I've experienced numerous times over the last four years, and I know my successor will experience. You get a little bit of threat information and it's very serious, and you have to try to determine if it's real or not real. If it's not real, if it's not really credible or specific, you don't want to disrupt the whole country. If it is, you may have to take some very disruptive measures and put some security in place that will be very inconvenient, so you have to make that judgment. And the last thing you want to have in that circumstance is to turn to your intelligence guys and say, well, what's the story, and have them say, we don't know because we're not allowed to collect any information that would tell you the answer. And so I think when you strike the balance -- and I know there are very strong arguments on both sides -- you've got to do it with a recognition, if not the experience, of what it's like to be in a room where you have to make the decision, which I -- and I've been in that room, and I've been very grateful to get all the information I was able to get from our intelligence community. WESTIN: Okay, there's one here, and we'll come back over here, I promise. QUESTIONER: Mr. Secretary, you're -- is this mike on -- your legacy certainly has been a good one in terms of the success in preventing further attacks of terrorists on this country. Indeed, that will go down as one of the major positive accomplishments of the Bush administration. Looking ahead, though, we can't expect this to last, can we? What needs to be done to close the gaps that you find still concerning in guarding against the weapons that you've just described? SEC. CHERTOFF: Actually that's a great question. I would say three things. Obviously we need to continue to use technology, intelligence gathering, organizational refinements to stay ahead of the curve in terms of what the enemy is doing -- better detection equipment, ideally equipment that's less intrusive, and we're working on some. I know no one likes to take their shoes off. We're working on some devices that would allow you to keep your shoes on. You know, this is a question of really having the technology that works. (Laughter.) So that's one thing. A second thing, though, is more strategic, which is to look at the long-term pool in which people recruit, and that's what my colleague Bob Gates talks about as soft power or Condee Rice talks about as soft power. It's changing the dynamic overseas and here at home -- but really less of a problem here at home than overseas -- to shift the tide against al Qaeda. It's very difficult to do because the government can't do it overtly. We've got to encourage the communities in which these ideologues are recruiting to send a message of tolerance and being mainstream as opposed to allowing these recruits to basically subvert a religion and misrepresent it in order to recruit people to an ideology. I know at our department, and others, we have done a lot of outreach. I've spent a lot of person time meeting with Muslim leaders, students and intellectuals here and overseas, and I think it's important we continue to do that because in the end, if you dry up the source of support, that's a very, very positive long-term solution. The third thing we need to do is we need to maybe do a little bit of a better job using our foreign aid and assistance to enable what we're trying to do to win those hearts and minds. We do an awful lot for foreign aid. You know, the president has done an amazing amount of investment with respect to AIDS and malaria. We've been out there when there was a tsunami, rescuing people. This generates positive results, but there's not always enough follow-through, and the follow-through was not always at the grassroots level. Sometimes it's at a high-altitude level. I was talking to a British Pakistani who is active in this area, about a week ago, and he was saying the British, they have less money to spend but the know how to get into the grass roots in these areas and work at the madrassas and at the individual community levels. And, frankly, I'm just reverse engineering what Hezbollah does. What Hezbollah and Hamas do is they take some of their money and they try to build social -- certainly Hezbollah -- social assistance networks as way of getting the allegiance of the population, which enables them to carry out their acts of violence. So those are the three elements: continuing with the stuff that we do that is hard power, including some of the things we do overseas, but also working on the soft power front and working to make our aid and assistance go a little bit further. WESTIN: Okay, back over there. And just to remind, please identify yourself and your affiliation so we have it for the record. QUESTIONER: Thank you. Mr. Secretary, my name is Roland Paul (sp). I'm a lawyer. My question follows logically from one of the earlier ones and draws on your experience in the Justice Department as much as in the Homeland Security, and also your brilliant background as a legal scholar. What do you -- could you give us a few words as to what you think the right approach is for the detention of suspected terrorists? I mean, it may be a modified POW, modified criminal, or may be a separate regime. Thank you. SEC. CHERTOFF: Okay, again, if you get a prior consistent statement in the statement in the record -- (laughter) -- so I don't look like I'm a Johnny-come-lately here. I think that we have to recognize that -- and I used the criminal justice system to prosecute terrorism cases when I was head of the Criminal Division. We did -- with Sauri (ph) we did a bunch of cases. So certainly for people captured in the U.S. it's a viable, good system that works in many cases. It does not work in every case. And there are cases where you can have perfectly good evidence, you can have electronic surveillance -- you can have a videotape of someone in another country literally planning a terrorist attack, and you catch them here in the country, you think, wow, I've got great evidence on videotape; it's not admissible in our courts because you can't get the witnesses in because the other country doesn't want to publicly acknowledge that it videotaped or that it's cooperating with the United States. What do you do? So you do need to find an alternative system, at a minimum to detain someone like that. And I think that's what we've been seeing as the topic of debate since 2001. I believe -- and I said this in 2003 -- the right answer is some kind of a system which Congress will have to enact -- it's going to have to be something Congress does -- that allows presentation of evidence, but maybe not according to the typical rules, of federal judges, someone that's, you know, visibly seen as a neutral arbiter, but one that allows a little flexibility in the process so that it's not necessarily the same standard of proof and so that you can keep classified material secret, and so that you can use evidence that is reliable but doesn't necessarily meet the technical requirements of a criminal case. I actually think there are systems that we use that are similar to that in certain kinds of legal regimes, and I won't bore you with what they are, but I've talked about this over the years with a number of people on all sides of the debate. I actually believe you could get an 80-percent consensus. There would be about 20 percent where there would be disagreement. The difficultly has been mechanically to get the right people to sit down and do this, and it's been hard in an environment where these issues become matters of hot political debate and therefore there's more heat than light shed on them. Again, new administration. There's an opportunity to take a deep breath, get some people together on all sides of the issue. I think we all fundamentally want the same thing: We don't want to treat people who are innocent unfairly, but we don't want to have people who are dangerous going around. And let's build the system and get Congress to ratify it. And the phrase I used, you know, five years ago, which I think is right, is we need to have a sustainable architecture, one that we're going to be able to live with and be comfortable with over the next decade or so. WESTIN: Okay, thanks. Down here. Yes, sir. We'll get a -- no, just behind you. Sorry. QUESTIONER: Herb London, Hudson Institute. Michael, nice to see you. SEC. CHERTOFF: Thank you. It's good to see you. QUESTIONER: And I think we are all owe you a debt for the extraordinary work that you've done. The question I have relates to a recent Pentagon report that suggests 61 detainees from Guantanamo are now back on the battlefield. I wonder -- and this is presumably based on forensic information about where these people have gone. I wonder what kind of tracing do you do of these people, and what do we know about them when they return to the battlefield? SEC. CHERTOFF: Well, there are people who have returned to the battlefield when they've been released. There was one case where -- (inaudible) -- a Kuwaiti was released and then ultimately found a way into Iraq as a suicide bomber. And that's the flip side of the coin about detainees. If you let them go and they commit acts of terrorism, you're going to have to look in the eyes of the family members of the person who lost their life and you're going to have to explain why that happened. So that's why it's a tough balance. What we do is before anybody leaves, we -- I always ask to make sure that we have all of their biometrics -- their fingerprints, photograph -- so that we can catch them if they ever come into the United States. And obviously that also would be available to people out in other parts of the world -- my view is we ought to share it with our allies and friends. The key is to be able to make sure a person like that cannot come back in and masquerade as somebody else, and that's where the biometrics -- the prints and the face and stuff like that make a big difference. WESTIN: Okay. Let's come down in front and then we'll come back over here. Microphone's coming. QUESTIONER: Thank you. My name is Fredrick Iseman and I'm with Caxton-Iseman Capital. I'm also a member of the council's nuclear posture review, where some of these issues have been discussed. My question is that you mentioned investments that you'd like to see made in WMD prevention, and I just wanted to ask specifically what those are. Some of the things that have been thrown around are getting rid of the highly enriched uranium that's in research laboratories in the United States, enhancing the IAEA enforcement budget, and working foreign ports -- I don't know if those are on your list but I'd love to hear what your list is. SEC. CHERTOFF: Well, let me stick to the things that fall more or less in the domain of my department. I mean, obviously, the extent you can tighten up security for nuclear plants around the world, that's a really good thing. And, of course, preventing proliferation, preventing new nuclear powers is a critical thing. Here at home some of the things to do are, we want to go with the next generation of detection technology, which would be more precise and therefore -- it's not that it would detect more types of material; it's that it would have -- prevent fewer false positives, which actually makes things work more efficiently. Another initiative we have underway is to look at radioactive material that's not useful in a bomb but would be very useful -- in a nuclear bomb -- but very useful in a dirty bomb. It's not going to create a nuclear reaction but it will be contaminant. And some of these are quite common, including in medical facilities. We have a program underway now, over the next year -- maybe a little less than a year now, about eight months, it should be finished -- to lock down all those machines and make sure they're much harder to remove the material from. But ultimately we need to either move to a different kind of material or have machines that really don't allow access to the radioactive material inside. One thing I don't think we should do is 100 percent scanning in foreign ports. First of all, some of our foreign allies will not agree to do that. Second, in some ports the architecture of the port doesn't lend itself to that. And third, frankly, some ports are low risk. Now we are doing some of this now. We are doing some of it overseas in Pakistan and in Honduras and other parts of the world, but I have to say candidly I'm less worried about someone building a nuclear bomb in Britain and shipping it over from South Hampton. So I'm not sure Britain's an area where I would feel very strongly that we need to put scanning overseas. But there's a lot of work to be done, including work on the biological side here, on getting the capability to distribute the countermeasures and also to do the planning work. You know, people tend to think of expenditure as just stuff. Planning, thinking and exercising, which cost money, are the most critical part in having an effective response. WESTIN: Thank you. Down here. QUESTIONER: I'm Catherine Gay, a communications consultant. Quick question: How essential is it for us to capture bin Laden? I certainly understand that it would be from a psychological point of view. From a practical point of view, will it make an enormous difference if and when we capture him? SEC. CHERTOFF: It will make some difference. I mean, obviously he is a source of inspiration and he has a role to play in al Qaeda, but I think it's fair to say, as others have said publicly, that I don't think he's got a lot of freedom of movement wherever he's hiding. So I -- it's not going to be a magic bullet if he's killed or captured. It would certainly be a blow to al Qaeda, but, you know, they are -- like any other group they are developing a younger generation, and as that generation grows and gets maturity they will ultimately move forward. You know, we're seeing -- we saw Zarqawi for a while in Iraq. He was very aggressive and he, of course, was removed so he's not on the scene anymore. So I'm afraid the ideology in some form or another will be with us for a long time. And the individual actors may come and go, but this is going to be a persistent problem until change the strategic landscape. WESTIN: Thank you. Yes, sir? QUESTIONER: William Haseltine, The Haseltine Foundation. Do you have thoughts on how you would recommend reform of the oversight --congressional and judicial oversight of your department? SEC. CHERTOFF: Yes. QUESTIONER: (Laughs.) SEC. CHERTOFF: I think we've said, particularly in the House of Representatives, there are many committees that assert jurisdiction over us. Now, I'm -- I welcome oversight like every other department gets with an authorizing committee and an appropriating committee. And, by the way, our appropriators -- and I met with the chairman of our House committee yesterday on the way out the door -- our appropriators I'm very happy with. They do a very good job. We don't always agree, but you've got one appropriating subcommittee in each House that deals with our stuff, and I think it's a very good relationship. The House of Representatives on the authorizing side -- because we have so many different authorizers, what happens is they all have their own priorities and their priorities are often different. And to be candid, sometimes they're influenced by things like whose turf, a particular project -- as in who would get to control the money. That is bad for the department because we're answering to too many different masters. So I would urge, as others have, that the Homeland Security Committee, which is what was set up by Congress to be our oversight committee, be the principle committee of jurisdiction, and that would align the House with the Senate, which basically does that. And I think it'd be better for Congress and it would be better for us as well. WESTIN: Thank you. We'll go to the back and we'll come back to you, I promise. QUESTIONER: Hi, Bill Luers; I'm president of the United Nations Association. One of the reasons that your department was set up and the Director of National Intelligence was set up was to try to provide the president with -- and the whole system -- with more accurate information involving exchange of information among the various agencies in the intelligence community. How has that worked out? And can you describe to us what types of things you've done to improve, and are you satisfied that enough has taken place? SEC. CHERTOFF: I can tell you in the eight years that have passed since I came into government with the administration -- I started out in Justice -- there's been a sea change in information sharing -- and certainly across the federal government. Because of the DNI -- the Director of National Intelligence -- the NCTC -- the National Counterterrorism Center -- and what we do, and FBI and everybody else, there is a much, much better integrated product and a process for making sure that all the intelligence is looked at by the relevant agencies in a systematic way. It doesn't mean that dissent is suppressed -- and we sometimes get reports where there may be dissenting analytic views -- but it means we're all getting access to the same product, the same information that we need to know. So I have not had an experience in the last few years where I felt I was shut out of anything that was necessary for me to know or appropriate for me to know. And I think that this is -- you know, it's a cultural change as much as an organizational change, because the culture of Washington is information is power -- I'm going to control my information and then I have more power. And the leadership of the intelligence community, to a man, whether it's Mike Hayden, or Mike McConnell, or Bob Mueller, or anybody else -- they've all worked to change that presumption into, we ought to be sharing; we are doing our job best when we are sharing with other people. WESTIN: Down here front -- yes, sir. Microphone -- it's coming. QUESTIONER: Julius Coles with Africare. One of the things that's been in the news quite recently is the fact that we're beginning to establish contact with foreign governments to take the detainees that are in Guantanamo to be -- (inaudible) -- there. It is obvious that all of them are not going to be taken and some of them are going to have to be incarcerated in the United States. What are the security implications of incarceration and future implications for trial, or what will happen to them? SEC. CHERTOFF: Now, that's a big question which the next administration's going to have to confront, which is why I think the president-elect indicated there'd be some complicated things to work out. I mean, there are practical issues, like, assuming you're going to incarcerate people, where are you going to put them? What community is going to want them? What are the implications not only for securing them but making sure that community doesn't become a target? There are legal issues. Even though in Guantanamo these individuals have basic legal rights like habeas corpus, when you set foot in the U.S. you get a whole additional group of legal rights. So you could wind up with a circumstance where someone starts to claim rights under the immigration laws. And that's really complicated and it would take hours to talk about so I won't talk about it here. But the short answer is these are exceptionally complicated legal issues. I might also point out that this issue is not limited to Guantanamo. There are now cases being filed in the courts about people being detained in Bagram Air Base in Afghanistan claiming they have a right to habeas corpus. Now, let's take the logic of this where it goes, because I think this is one of the challenging legal issues of our time. If habeas now extends around the world -- which was not true 20 years ago -- in World War II the courts were very clear; you don't get Habeas when you're overseas -- then every time you capture somebody, do they get to call the judge up and get released? Do you need a warrant to do that? And then that raises the even bigger question: Can you kill people in a war? Because after all, if it's all part of the criminal justice system -- we don't kill criminals in this country; we arrest them. These are really difficult questions. And, you know, I would venture to say of all the legal issues I've ever dealt with, this set of issues is the hardest because for many -- for decades we approached the world as if it was neatly divided into two categories -- criminal justice and war. We knew what war was; people, you know -- it was a battlefield, uniforms, planes. We knew criminal justice. And unfortunately the world did not confine itself to the categories. So now we have people who -- I mean, here's the question I'll leave you with: You find a leader of al Qaeda walking along the streets of New York. I don't think any of us would argue -- I should say, I wouldn't argue you can shoot him. I would argue you'd have to arrest him and you'd have to treat him under the laws of the country. A week later, same person walking along in Afghanistan. You can drop a bomb on him. How can that be? How can it be that depending on where you are -- here's that difference? That's a good question people are going to have to answer. WESTIN: I think we have time for about one more question. Yes, you, back here. Yes. QUESTIONER: Steve Handelman, John Jay College. Sir, in a recent interview you pinpointed a new danger that we face totally apart from the al Qaeda issue -- specifically the ongoing problems in Mexico started by the drug cartels. And you talked about the potential or the necessity for developing a surge capacity in case spillover of the violence there affected us -- the southern border and further inland. I wonder if you could elaborate a little bit more about what that danger is and what we're doing about it. SEC. CHERTOFF: Yes, I'd be happy to. This comes out of an interview I gave about a week ago in which I mentioned to a reporter from the Times that -- I've spoken a lot about the issue in Mexico and the fact that the president of Mexico is doing a heroic job tackling the drug cartels, which have really run free in some of the northern communities of Mexico for many years now. And he's taken them on and they are reacting, unsurprisingly but unfortunately, with unbelievable violence. And not just against the police and the public officials, although they're assassinating public officials and killing police, but they attack innocent citizens, and they do it barbarically. They're actually using some of the tactics that you can see being used in Iraq, literally to terrorize the government, to terrorize the population, to try to push back on President Calderon. Now, you know, we're helping them. We've got the Merida Initiative, which is critically important. We're giving him money, tools, advice, instruction, all those kinds of things. And he's got the determination. Nevertheless -- although I hope for the best, I prepare for the worst -- so we have -- we've seen an uptick in violence at the border, mainly directed against the border patrol. But I can unfortunately imagine a circumstance under which that violence crossed over, either because the cartels were getting more and more desperate and because they were angry at our help to Mexico and they wanted to lash back or because the cartels prevailed and then they began to push against us. And so what we've done is we've got a plan in place with our various components to make sure we can put, basically our SWAT teams and our similar capabilities at the border if necessary, and we've got a backup plan with the Department of Defense so that if we did get a surge of violence that threatened to spread across the border, we would be able to meet it. You know, supposing, for example, a drug cartel was chasing somebody and they got to a port of entry and tried to follow them into the United States, we'd want to be able to respond to that. But there's a larger issue, which is as we think about the threats that we face in the world; everybody knows about al Qaeda, Hezbollah, the FARC, other things. I believe this potential threat and what's at stake has been understudied in this country. I have a lot of faith in Calderon. I think he will prevail. But everybody needs to understand that it's in our national interest that he does prevail. When we went -- when the president went to Congress for the Merida Initiative, people were complaining, "Why are you putting the money in Mexico? Give it to our sheriffs on the border." What the president understood is the place to strike the enemy is where the enemy's head is at. You don't put the money where the enemy's arms and legs are. And the head is in these communities in Mexico. If we don't get this right and if you had organized criminal groups, including some with military training, operating with impunity in northern Mexico, we would find ourselves in a very, very dangerous situation from a variety of standpoints. So to me that is top of the list of national security concerns, you know, in the next administration. WESTIN: And with that, we're right at 2:00. I want to, first of all, thank everyone for coming and participating, and the level of interest is reflected by how many people -- and I apologize to you -- who had questions we didn't get to. And most important, thank you very much. Thank you for your time, but also thank you for your service. (Applause.) SEC. CHERTOFF: Thank you. .STX (C) COPYRIGHT 2009, FEDERAL NEWS SERVICE, INC., 1000 VERMONT AVE. NW; 5TH FLOOR; WASHINGTON, DC - 20005, USA. ALL RIGHTS RESERVED. ANY REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION IS EXPRESSLY PROHIBITED. UNAUTHORIZED REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION CONSTITUTES A MISAPPROPRIATION UNDER APPLICABLE UNFAIR COMPETITION LAW, AND FEDERAL NEWS SERVICE, INC. RESERVES THE RIGHT TO PURSUE ALL REMEDIES AVAILABLE TO IT IN RESPECT TO SUCH MISAPPROPRIATION. FEDERAL NEWS SERVICE, INC. IS A PRIVATE FIRM AND IS NOT AFFILIATED WITH THE FEDERAL GOVERNMENT. NO COPYRIGHT IS CLAIMED AS TO ANY PART OF THE ORIGINAL WORK PREPARED BY A UNITED STATES GOVERNMENT OFFICER OR EMPLOYEE AS PART OF THAT PERSON'S OFFICIAL DUTIES. FOR INFORMATION ON SUBSCRIBING TO FNS, PLEASE CALL CARINA NYBERG AT 202-347-1400. THIS IS A RUSH TRANSCRIPT. ------------------------- DAVID WESTIN: Good afternoon. I'm David Westin, and I'm privileged to be able to be here with the secretary today. I have a few remarks and I have a script here. I'll make sure I get them all right. First of all, welcome to today's Council on Foreign Relations meeting. Very important: Please turn off -- I just did -- your cell phones and your BlackBerrys and any other wireless devices. It's not just so that we don't interrupt the secretary when he's talking, but also, it will interfere with the amplification system in the room. And I want to remind everyone that this meeting is indeed on the record. And the Council of Foreign Relations, I think, will be putting it on their website, as I recall. And with that, the way this works, for those of you who may not have been here before, is we'll talk for about 30 minutes or so and then we'll open it up to the floor for all of you to ask questions. But before I ask the secretary any questions, first of all, let me introduce the man who needs no introduction: Secretary Chertoff. You all have read, I hope, the brief synopsis of his distinguished career. He's been a distinguished law enforcement official for some time. And he gave up his lifelong tenure as a 3rd Circuit Court of Appeals judge to become the second secretary of Homeland Security where he's been for almost four years. SECRETARY MICHAEL CHERTOFF: Yes -- almost exactly four. WESTIN: And the two things that I think are true, that are not in your CVR, number one, he clerked for not only Justice Brennan -- the distinguished Supreme Court judge -- but also Murray Gurfein, that a number of you in the room I suspect will remember, a wonderful 2nd Circuit Court of Appeals judge whom I knew. And he also, I think this is true, is the son of and the grandson of Talmudic scholars. Is that a fact? SEC. CHERTOFF: Well, Rabbis. I'm going to stop you when you -- (off mike). (Laughter.) WESTIN: So with that, we'd love to hear your opening remarks and then we'll ask some questions. Thank you very much for being here. SEC. CHERTOFF: David, thank you. And thank you to the Council for hosting me. I think I've been here once before and I've also had the opportunity to meet with members of the council down in Washington as we've talked about various homeland security issues. I was going to begin by recalling a fair day in the middle of a September during my time in office when there was a cataclysmic event. And as a consequence of that event, there were really profound changes in the way the American government operated. The executive took some steps -- excuse me -- that were in the view of some an unprecedented exercise of power and there's criticism for that. The legislature moved some major legislation and there's a little bit of buyer's remorse about that. There were all kinds of legal issues that were thrown up. There were mistakes that were made. There were claims that there wasn't enough transparency about what was going on. And you probably think I'm talking about September 11th, 2001, but I'm actually talking about September 15th, 2008 -- the financial crisis -- because in the wake of the financial crisis, the fettering of Lehman and the cascading meltdown, you saw much of the same kind of vigorous government action, and some of the same criticism of that action, that occurred on September 11th, 2001 when the World Trade Center physically fell down instead of financially fell down. This past September, after the collapse of Lehman and the beginning of the meltdown, we had the unprecedented passage of the TARP, which I think began as three pieces of paper. We had members of Congress going to the executive and asking the secretary of the Treasury to change the rules on his own -- simply lift some of the restrictions and do things that hadn't been originally contemplated or promised. And in fact, the secretary -- under the president's leadership -- took very vigorous action. That action has not been free from criticism. Mistakes have been made. There have been complaints about a lack of transparency about the way the TARP is operating. I mean, even now as we speak, there is a demand for ever more dramatic, energetic and fast action to deal with a crisis that threatens the underpinnings of our financial system. Pretty much all these things could be said about September 11th. In the wake of September 11th, Congress passed the Patriot Act. It actually spent much more time on that then the TARP, but even so, people have complained from time to time that it was too quickly. The executive acted very vigorously. The president used all of the powers at his disposal and there's criticism of that. There are not doubt that some mistakes were made and there's certainly been complaints about lack of transparency. So what's my point? My point is not that we've done the wrong thing in reacting to the financial crisis. My point is that in the middle of a crisis, in the middle of an emergency you have two choices: You can either act swiftly and decisively, and inevitably that's going to be less than perfectly transparent or perfectly executive; or you can spend an awfully long amount of time thinking about what to do, in which case you will have a mounting crisis of confidence and a failure and paralysis in government. And so my contention is that the steps that we took on September 11th -- and the steps we took on September 15th -- are both right in the context of an emergency. And just as there's been some buyer's remorse after September 11th and some after-the-fact hindsight criticism after September 11th, I guarantee you that in two years or three years, every -- probably not going to wait that long -- everything that was done in the emergency after September 15th and everything that'll be done in the next sixth months will be subject to the hindsight and the luxury of criticism after the fact. So my point is, all emergencies in many ways are not alike. And the test is not -- the question is not the specific measures. The question is: Will government take vigorous action to stop the bleeding, to prevent further problems along the lines of the original emergency and perhaps most fundamentally, to restore public confidence? I believe the answer is that government should do that. But I also believe that those who make those decisions must realize that just as night follows day, they will surely be criticized after the fact all of the flaws and imperfections and speedy execution will be held up under a spotlight. So bottom line is don't get in the business of dealing with crises and emergencies if you're not prepared to deal with the heat after the fact. And that's my opening. WESTIN: That's very interesting and persuasive in many respects. I want to ask about a few things, but before that let me pick up on what you're talking about, because I think I take your implicit point: that those of us who aren't in the middle have it easy to sit back and look at it and second guess and criticize. At the same time, sometimes it might appear to those of us on the outside -- and you can take 9/11 or this last September -- sometimes might have the impression that those who are making decisions get quite defensive afterwards. I mean, what is -- is there a useful part to that second guessing and criticism, not just a carping part? SEC. CHERTOFF: No, there is, David. And I've said this before, so I'm not making news and I'm not -- WESTIN: It's okay to make news. Go ahead! (Laughter.) SEC. CHERTOFF: I'm not making news. I'm not being a Johnny-come-lately revisionist historian. I think after the initial emergency measures are in place, it is appropriate to stand back at some point and look and recalibrate at what you've done. I gave a speech -- I quote myself only in order to put a prior consistent statement on the record. I remember in 2003 when I was a judge I said -- I gave a speech and I said, look, we've done, I think about as good a job balancing in the war against terror as we can, but it hasn't been perfect. So the time has come to get together with Congress and to work to recalibrate some of the measures. We may decide some of the things we did were not enough. We may decide some of the things we did were too much. We may decide some of them can be done better in a different way. And I think there's a little bit of a missed opportunity on both sides of Pennsylvania Avenue, because it wasn't -- it didn't seem possible to get together with Congress and do a dispassionate revision and adjustment of what had been done after 9/11. That may simply reflect the fact that there was an election campaign coming up, but it may be the political temper. And one of the problems with some of the poison in Washington is an inability to do that. So I believe that now with a new administration there's another opportunity to recalibrate. Recalibrate does not mean abandon, throw over and expunge. And if anyone thinks that that's appropriate, I think that would be a great misjudgment. But I think it is appropriate to recalibrate. And I will also venture to say that it will certainly be true in a year or two years it will be appropriate to recalibrate what's being done in the financial area, because there'll no doubt be some mistakes. WESTIN: So with that, let me start with some specifics and let's start with the news. All of us woke up this morning and heard that Osama bin Laden apparently -- as far as we can tell -- put out a new statement that had to do with Gaza and implicitly about the president-elect and things. We've seen a number of these statements come out, and for those of us who are not on the inside, I think we all puzzle over them. I mean, do they really have significance? Is there anything to be read into them? And I'm sure there are limits on what you can say, but either about this statement or generally, when something like that comes out, do you look for things in that? Does that have any real significance for you or is that just a propaganda statement? SEC. CHERTOFF: Well, we always look at statements to see is there some hidden code. Is it indicative of some operational thing that's going to occur? There's been the theory that from time to time, when bin Laden has made statements about how he's given the West a chance to convert and become his religious disciples and we've turned that down, that what he's trying to do is essentially create the predicate or the justification for a weapon of mass destruction attack by showing he gave us one last chance to come over to his side and we didn't do it. But I can't think of a time that we've actually found any real operational significance in the statements. You have to look at the statements as part of the battle of ideas. And that's where a lot of the long-term strategic struggle is. And what's interesting to read in the statement is what is he talking about? Because it tells you what they're feeling defensive about. For example, in the last year or so there's been some push back from a number of clerics, who had originally supported a very extreme form of Islam, beginning to argue that this is actually hurting innocent Muslims and questioning whether, in fact, the violence was appropriate under Islamic law. This really struck at the heart of bin Laden's message and his ideology. So Zawahiri got on and attacked the clerics and he issued videotapes talking about how the clerics are wrong. And there was actually debate about this, because it was about the legitimacy of the ideological movement which bin Laden is leading. Likewise, about a year or so ago, he gave a speech which he -- in which he tried to hitch his star to a whole lot of things: globalization, economic problems. And he's always very big on tapping into current events. I view that as a little bit of a sign of insecurity, because I think what he's trying to do is get at the head of whatever parade is marching down the street. So I think there's a lot of value from an intelligence standpoint strategically, but I don't -- at least in my experience -- haven't yet seen these statements as a sign that, you know, the missiles are coming or the bombs are about to go off. WESTIN: Another specific: Mumbai around Thanksgiving time. What, if anything, did we learn from that? What did that teach us? SEC. CHERTOFF: Well, I'm happy to say that we anticipated the possibility of this kind of an attack in a general sense, because we did launch a small boat strategy here in the United States that's precisely designed to deal with small boats being the attack method. And of course, we've seen that in the past with the USS Cole or the USS The Sullivans. So it was not a surprise to have this kind of an attack. It was well executed. I think it was probably a wake up call to hotel companies and others in the travel and entertaining business and the softer target area that they can't assume that all attacks are going to be directed at public transportation; that they have a responsibility to prepare themselves for both making harder to attack a hotel or a restaurant or a social event, but also to have resiliency in place -- to have a plan in place that allows people to quickly respond and recover. And I think one of the things that emerged in the press was that the Indians didn't have a unified plan that enabled a swift response. And actually, frankly, a lot of what our department is designed to do and has done over the last few years is to build that unified plan that gets the responders and the preventers and the law enforcement -- everybody at the same table with a single, integrated planning system in place. WESTIN: How far along in that spectrum are we, do you think? SEC. CHERTOFF: For much -- WESTIN: When you take the soft targets particularly? SEC. CHERTOFF: Certainly with respect to things in terms of the government's responsibility, the government's domain, I think we're quite far along. We're not done, but we've made a lot of progress. If you look at the private sector, where we partner through our department, you get a mixed picture. Some entities like chemical plants we've looked at very closely. They're actually in -- we've tiered them according to risk and they've actually made a lot of progress. We've done the same thing with train lines and things of that sort. When you get to hotels and really soft targets, I think you've got a real range of reactions. Some, I think, are very good. Some, I think, have not paid a lot of attention to it. We in the government can't protect all the hotels. You know, we do interact with that sector of the economy. We give them guidance; we give advice. We have put out information about lessons learned from Mumbai so that people can assimilate them. But I worry that in this economic environment it's easy to take the view that you should spend your money on the immediate concern you have, which is your payroll and your supplies and the things you need to run on a day-to-day basis and that issues like security can be pushed off. The difficulty with that is it's very unpersuasive the day the attack comes and then everything collapses. Because once you have a serious attack with a loss of life, it's going to be fatal -- it can be fatal or almost fatal to the business, depending on what it is. So it's important, even as we worry about things like the financial crisis, to be very focused on the need to continue to invest against perhaps low probability, but very, very high consequence in all of our personal lives and our businesses. WESTIN: But should we be expecting to see increased security at shopping malls, at hotels? I mean, after -- it 2006, right, with the plot with the liquids? SEC. CHERTOFF: Right. WESTIN: And after that, it changed air travel. We all have to have only three ounces and you have to put it in a transparent bag and all of that. After the Mumbai thing, I don't think -- I didn't see much of a change at all. In other words -- I know there was exercise here in New York City where the mayor and the police chief did something the hotels, but we don't see anything. Maybe it's behind the scenes. SEC. CHERTOFF: Well, I think there are two answers to that. One is the architecture of the aviation system's different than the architecture of the travel and leisure industry as a whole. Aviation is centralized. The areas that it takes place are clearly identifiable. It also happens to be a federal responsibility, so we expect and we're authorized to put federal assets as well as local assets into security. When you get to hotels, they're in private hands. We don't have federal police that go out and patrol hotels and malls. And frankly, local police, although they may do some of that -- and I know here in New York they do pay attention targets that they perceive as potential high-value targets -- even so, we don't have the capability, certainly at the federal level, but probably most local levels, to actually do the work of patrolling. That's really got to be done by the owners. But the other thing is the architecture of a hotel; the architecture of a shopping center is such that you can't run it the way you run an airport. If you put magnetometers and had long lines in the shopping center and your hotel, you're not going to have much business. So it's a balance and that's why we talk about risk management. And risk management means not elimination of risk, not guarantee against risk, but it means what is the appropriate investment in security that doesn't actually subvert the basic function of what it is you're trying to accomplish? And it's tricky. It's an art, not a science, because you're leaving a little vulnerability because you can't afford to destroy your business in order to protect it. WESTIN: So turn to the more general -- we're talking about risk management. Looking back on your tenure, first, what did you accomplish or what do you have in place that you most want your successor -- and I know you know Napolitano is replacing you. What do you most want her and the agency to continue to do or to expand on? What is important to you in your legacy that it not go away? SEC. CHERTOFF: I think a couple of things. I think the biggest would be maybe the screening of our borders -- the ability to have much better visibility to who comes across our borders than we ever had before. It's not a job that's done, but it's a job where an enormous amount of progress has been made. Let me take you back to before 2001. Before 2001, we did not capture the fingerprints of every visitor coming through our airports. Now we not only get their two fingerprints, we get their 10 fingerprints. The value of this is we can compare it against latent fingerprints that we pick up in safe houses and battlefields all over the world. And we can identify someone who's been on a battlefield, whose name we don't know, but who will turn up when they cross the border or when they apply for a visa when we match their fingerprints. And we have found people ranging from criminals to people who are -- there was one fellow whose fingerprint appeared on a piece of paper in a safe house where a terrorist plotting that occurred in Europe. And he applied for a visa and they picked up the fingerprint when he gave his fingerprints at the visa office. It turned out, as it happens, there was an innocent reason why his fingerprint was on that piece of paper in that location, but that's exactly what you want to know. So that's an important program. We now gather commercial information from the airlines coming across the Atlantic and the Pacific that tell us some basic data about everybody who's coming into the country -- how they purchased their ticket, their contact information, their previous travel segments, things of that sort. That enables us to create linkages between people whose names may not be on a watch list, but who are connected to someone who we know to be a terrorist, because for example, they have a common source of payment or because they traveled together on two prior segments of a trip. We had a case recently where we detected a person who's part of a terrorist organization using precisely that data, and that person is now in custody. So that's a proven technique that actually works. In terms of our scanning at ports: We now scan for radiation at virtually 100 percent of our container cargo companies. We didn't have that prior to 2001. And even between the borders -- although this is a matter of some controversy -- we have much -- we've doubled the Border Patrol; we've built tactical infrastructure and technology the likes of which the Border Patrol never dreamed of. And that has resulted in a reduction not only of smuggling of humans coming across, but drug smuggling has gone down. We're actually becoming more of a maritime domain through these semi-submersible kind of half submarines that the Coast Guard keeps intercepting. So to me that screening, which is I think a significant part of the reason why we are seeing a tax in Europe and in other parts of the world that have not been successful here, I think it's very important to keep that going. WESTIN: Okay, what's the flip side? What's the thing you didn't have time to get to or it didn't go as far as you'd like that you'd most like them to do as they come in? SEC. CHERTOFF: David, we were late on the cyber security because it was hard for us as a department to figure out how we could be adding value in cyber security, given the fact that the Internet is almost entirely in private hands and is culturally very resistant to government regulation and government intrusion. And so the question was, you know, we created a forum for people to exchange information. We had a team called U.S. SERT, an emergency reaction team that was capable of giving a warning when we knew an attack was underway and helping people figure out how to deal with it. But I felt it kind of weak tea, given the threat. About a year and a half ago the director of National Intelligence and head of NSA met with me and we talked about, was there a way we could combine their capabilities and our authorities in a fashion that would preserve their domain and prevent them from encroaching into a civilian domain, but that would give us the ability to really bring some advanced tools to the table. And the consequence of those meetings and a lot of very, very good planning among a number of agencies including DOD and DOJ and our own agency, was a strategy for cyber security, which the president got personally very engaged in and launched in January of 2008. We've made a lot of progress in that. We have reduced the number of vulnerable entry points to government domains. We are beginning to deploy the next level of our intruding detection capability that gives us real-time warning, and we're working on what I will call the 3.0 version of this, which would actually give us the ability to intercept malicious attacks before they can actually hit the target. So we've made a lot of progress but there's a lot to be done, not only finishing the deployment but helping the private sector on a voluntary basis with some of the techniques we've developed, dealing with the issue of quality assurance for the software to make sure software doesn't become a basis for people to implant Trojan horses or other kinds of malicious software when you buy the computer, and also raising the general level of protection against insiders. So I would say that if I was going to devote a priority over the next year or two, it would be to making sure that we continue to build on the momentum of last year in the cyber area. WESTIN: When I talked to you earlier in your tenure in your office in Washington and I asked you the question, what's the biggest threat, you said it's -- as I recall, if my recollection is right -- a weapon of mass destruction on U.S. soil by a terrorist group. Has your view changed since then? That's probably three years ago. SEC. CHERTOFF: No, it's consistent. WESTIN: Is it? SEC. CHERTOFF: It is consistent, and I want to be careful to define "biggest." WESTIN: Right. SEC. CHERTOFF: "Biggest" doesn't mean most likely to happen. It means if you look at probability, vulnerability, and consequence as a formula for risk, although the probability is lower than other attacks, we are quite vulnerable because it's the nature of a weapon of mass destruction that it's very hard to protect against and the consequence can be astronomical. So a biological weapon or a nuclear weapon would be, to my mind, just light years beyond what we've experienced. And from my standpoint, while local law enforcement and state authorities do a good job with homegrown terrorism kind of -- if I can use the term -- garden variety or routine types of terrorism, the federal government is uniquely situated to deal with the issue of coordinating on a weapon of mass destruction. Now, the good news is I don't think this is around the corner. The bad news is the investments that we need to continue to build protection and resiliency against a weapon of mass destruction are long-term investments. And that means we have to make them now even though the consequences and the need for them may not be felt for five or 10 years. And I was talking to Pete Peterson a few minutes ago about the financial question, the issue of, you know, why we don't get with long-term problems now. Well, this is the analogue to the get (ph) crisis and the financial crisis in the physical world. If you don't invest in the capability to refine detection or protection against these kinds of weapons of mass destruction, when the day comes that it's around the corner, you're not going to have the time to deal with it, and then the consequences will be catastrophic. So, to me, just as I think we've got to deal with our economic ticking time bombs, this is the kind of physical ticking time bomb we have to invest against. WESTIN: You say it's not the highest probability, or it's not around the corner I think is what you said, sometimes, though -- in fact, we had one in the last, I think, two weeks or so -- there are reports that come out from academics and others that actually sometimes put percentage numbers against the likelihood of a nuclear device or a biological attack, and usually it's a pretty high percentage within a pretty short period of time: In the next three or four years there's going to be a 50-percent chance. You must look at those. I mean, is it -- are they worth the paper they're written on, in your opinion? I mean, what are they based on? SEC. CHERTOFF: Well, first of all, I think when you actually try to assign a percentage -- it reminds me when I was a trial lawyer, you know, I had clients that would say to me, what's the percentage chance I'm going to win the case? I'd go, 82.5 percent. (Laughter.) Now, truthfully, that's unverifiable. I mean, you either win or you lose. You're never going to know whether you were in the 18 percent or the 82 percent. So I don't think you can percentage qualify it. I do think you can make some broad generalizations, which I think are consistent with the most recent report. A nuclear device is probably the hardest to make -- the hardest type of weapon of mass destruction and therefore the least probable, unless one were stolen or -- and this is obviously the biggest concern -- unless a country which possessed the nuclear device were to make it available to a terrorist group or deliver itself. That's why we obviously look at proliferation as essentially the handmaiden of this kind of weapon of mass destruction. The picture with respect to a biological weapon is not quite a rosy, if I can describe anything as rosy. We've had a biological weapon. We've had the anthrax attacks. We know it is possible to make anthrax from ingredients that occur in nature, not like you have to refine it like enriched uranium. And it's a question of know-how and weaponizing. So the people with the know-how are the threat, and it's very, very difficult to detect a biological weapon because you can carry it in in a very, very small vial, or you could even make it, if you have the know-how, here in the United States. So a key element is the ability to respond and mitigate. The good news on most of these biological weapons is we do have countermeasures and antidotes. The bad news it's hard to distribute them. We've got big stockpiles, but how do you get it in the hands of people, perhaps in a 24-hour period in the big city? And that's why I've argued for a plan of actually letting at least some populations have what we call medical kits -- you know, med kits -- that would have in those kits some of the most likely countermeasures for a biological attack. You would give it to people, maybe first responders -- we're already doing this with some people in the post office -- and maybe you distribute it in the general population and give it to businesses, and the idea would be when the balloon goes up you would tell people, now you should, as a precautionary measure, take some Cipro or take something else. Some people would say that's alarmist, and my problem is that until it happens it's going to sound alarmist. Once it does happen it's going to seem like common sense, just like about a year ago people would have said it's alarmist to believe that, you know, the Dow is going to fall several thousand points and the housing market is going to crash. We've now discovered that it's common sense to assume that. So, again, this is part of my mantra of let's make those investments now. WESTIN: Terrific. Thank you. So we could keep talking but it's your turn. I would ask for -- if you want to ask a question, put up your hand or stand up and wait until the microphone comes to you. And then if you'd identify yourself and your affiliation, and try to keep it to one question if you would. Talk right in the mike. So why don't we start back here? There's a lot of hands in the air, but we'll start there and I'll work my way around. Yes, sir? QUESTIONER: I'm Gary McDougal (sp). You know me from UPS. You deserve our thanks because in the last four years we've been okay, and it's hard to get rewarded for nothing happening. And so I think we need to recognize that. My question relates to connecting methods of interrogation to your information. Can you tell us if the current methods of interrogation have in fact produced valuable information for you that has minimized the risk of attack? SEC. CHERTOFF: Well, I'm probably not best situated to answer that because I'm the consumer of information, so whatever information is obtained, whether it's from signals intelligence or human intelligence or interrogation, I'm interested in the product. I don't always know -- in fact, I'm likely not to know exactly how it was obtained. So I have to rely, therefore, on someone like Mike Hayden said. Mike Hayden, the CIA director, has said that the methods of interrogation have produced really positive results that have led to plots being disrupted and things of that sort. You can always ask the question, well, was there another way of getting it? And the answer is it's hard to prove a negative or a counterfactual. The challenge you have is some people you can woo with honey; some people you have to, you know, put a little pressure on. Lest we be too delicate about this, I want to remind people, our criminal justice system, the one that is presided over by our federal courts and has repeatedly been upheld by the Supreme Court, doesn't allow physical coercion, but it does allow an awful lot of coercive interrogation, in a sense what we call plea bargaining. What plea bargaining is -- and some of you may know this very well -- what plea bargaining means is you have a very heavy charge over somebody, probably one that will send them to life; sometimes it will send their family away for life, and you basically strike a bargain where you say, I want information in return for reduced charges or you're going to go away to jail for the rest of your life. Now, that's not physical coercion, but anybody who thinks that "love bombing" the subject is wrong. That is very coercive. You are putting enormous pressure on people to get them to cooperate, but it's okay under our system. I might tell you, by the way, if you go to Europe, that's considered a barbaric system, and they would probably argue that system is the equivalent of, you know, abuse. So I guess I would say to you there's a long debate to be had by others, not me. I can only tell you the results we've gotten from all the techniques we've used -- and I can't always tell you which one leads to which result -- has given us our real actionable information. The last thing I would say is this, which I've experienced numerous times over the last four years, and I know my successor will experience. You get a little bit of threat information and it's very serious, and you have to try to determine if it's real or not real. If it's not real, if it's not really credible or specific, you don't want to disrupt the whole country. If it is, you may have to take some very disruptive measures and put some security in place that will be very inconvenient, so you have to make that judgment. And the last thing you want to have in that circumstance is to turn to your intelligence guys and say, well, what's the story, and have them say, we don't know because we're not allowed to collect any information that would tell you the answer. And so I think when you strike the balance -- and I know there are very strong arguments on both sides -- you've got to do it with a recognition, if not the experience, of what it's like to be in a room where you have to make the decision, which I -- and I've been in that room, and I've been very grateful to get all the information I was able to get from our intelligence community. WESTIN: Okay, there's one here, and we'll come back over here, I promise. QUESTIONER: Mr. Secretary, you're -- is this mike on -- your legacy certainly has been a good one in terms of the success in preventing further attacks of terrorists on this country. Indeed, that will go down as one of the major positive accomplishments of the Bush administration. Looking ahead, though, we can't expect this to last, can we? What needs to be done to close the gaps that you find still concerning in guarding against the weapons that you've just described? SEC. CHERTOFF: Actually that's a great question. I would say three things. Obviously we need to continue to use technology, intelligence gathering, organizational refinements to stay ahead of the curve in terms of what the enemy is doing -- better detection equipment, ideally equipment that's less intrusive, and we're working on some. I know no one likes to take their shoes off. We're working on some devices that would allow you to keep your shoes on. You know, this is a question of really having the technology that works. (Laughter.) So that's one thing. A second thing, though, is more strategic, which is to look at the long-term pool in which people recruit, and that's what my colleague Bob Gates talks about as soft power or Condee Rice talks about as soft power. It's changing the dynamic overseas and here at home -- but really less of a problem here at home than overseas -- to shift the tide against al Qaeda. It's very difficult to do because the government can't do it overtly. We've got to encourage the communities in which these ideologues are recruiting to send a message of tolerance and being mainstream as opposed to allowing these recruits to basically subvert a religion and misrepresent it in order to recruit people to an ideology. I know at our department, and others, we have done a lot of outreach. I've spent a lot of person time meeting with Muslim leaders, students and intellectuals here and overseas, and I think it's important we continue to do that because in the end, if you dry up the source of support, that's a very, very positive long-term solution. The third thing we need to do is we need to maybe do a little bit of a better job using our foreign aid and assistance to enable what we're trying to do to win those hearts and minds. We do an awful lot for foreign aid. You know, the president has done an amazing amount of investment with respect to AIDS and malaria. We've been out there when there was a tsunami, rescuing people. This generates positive results, but there's not always enough follow-through, and the follow-through was not always at the grassroots level. Sometimes it's at a high-altitude level. I was talking to a British Pakistani who is active in this area, about a week ago, and he was saying the British, they have less money to spend but the know how to get into the grass roots in these areas and work at the madrassas and at the individual community levels. And, frankly, I'm just reverse engineering what Hezbollah does. What Hezbollah and Hamas do is they take some of their money and they try to build social -- certainly Hezbollah -- social assistance networks as way of getting the allegiance of the population, which enables them to carry out their acts of violence. So those are the three elements: continuing with the stuff that we do that is hard power, including some of the things we do overseas, but also working on the soft power front and working to make our aid and assistance go a little bit further. WESTIN: Okay, back over there. And just to remind, please identify yourself and your affiliation so we have it for the record. QUESTIONER: Thank you. Mr. Secretary, my name is Roland Paul (sp). I'm a lawyer. My question follows logically from one of the earlier ones and draws on your experience in the Justice Department as much as in the Homeland Security, and also your brilliant background as a legal scholar. What do you -- could you give us a few words as to what you think the right approach is for the detention of suspected terrorists? I mean, it may be a modified POW, modified criminal, or may be a separate regime. Thank you. SEC. CHERTOFF: Okay, again, if you get a prior consistent statement in the statement in the record -- (laughter) -- so I don't look like I'm a Johnny-come-lately here. I think that we have to recognize that -- and I used the criminal justice system to prosecute terrorism cases when I was head of the Criminal Division. We did -- with Sauri (ph) we did a bunch of cases. So certainly for people captured in the U.S. it's a viable, good system that works in many cases. It does not work in every case. And there are cases where you can have perfectly good evidence, you can have electronic surveillance -- you can have a videotape of someone in another country literally planning a terrorist attack, and you catch them here in the country, you think, wow, I've got great evidence on videotape; it's not admissible in our courts because you can't get the witnesses in because the other country doesn't want to publicly acknowledge that it videotaped or that it's cooperating with the United States. What do you do? So you do need to find an alternative system, at a minimum to detain someone like that. And I think that's what we've been seeing as the topic of debate since 2001. I believe -- and I said this in 2003 -- the right answer is some kind of a system which Congress will have to enact -- it's going to have to be something Congress does -- that allows presentation of evidence, but maybe not according to the typical rules, of federal judges, someone that's, you know, visibly seen as a neutral arbiter, but one that allows a little flexibility in the process so that it's not necessarily the same standard of proof and so that you can keep classified material secret, and so that you can use evidence that is reliable but doesn't necessarily meet the technical requirements of a criminal case. I actually think there are systems that we use that are similar to that in certain kinds of legal regimes, and I won't bore you with what they are, but I've talked about this over the years with a number of people on all sides of the debate. I actually believe you could get an 80-percent consensus. There would be about 20 percent where there would be disagreement. The difficultly has been mechanically to get the right people to sit down and do this, and it's been hard in an environment where these issues become matters of hot political debate and therefore there's more heat than light shed on them. Again, new administration. There's an opportunity to take a deep breath, get some people together on all sides of the issue. I think we all fundamentally want the same thing: We don't want to treat people who are innocent unfairly, but we don't want to have people who are dangerous going around. And let's build the system and get Congress to ratify it. And the phrase I used, you know, five years ago, which I think is right, is we need to have a sustainable architecture, one that we're going to be able to live with and be comfortable with over the next decade or so. WESTIN: Okay, thanks. Down here. Yes, sir. We'll get a -- no, just behind you. Sorry. QUESTIONER: Herb London, Hudson Institute. Michael, nice to see you. SEC. CHERTOFF: Thank you. It's good to see you. QUESTIONER: And I think we are all owe you a debt for the extraordinary work that you've done. The question I have relates to a recent Pentagon report that suggests 61 detainees from Guantanamo are now back on the battlefield. I wonder -- and this is presumably based on forensic information about where these people have gone. I wonder what kind of tracing do you do of these people, and what do we know about them when they return to the battlefield? SEC. CHERTOFF: Well, there are people who have returned to the battlefield when they've been released. There was one case where -- (inaudible) -- a Kuwaiti was released and then ultimately found a way into Iraq as a suicide bomber. And that's the flip side of the coin about detainees. If you let them go and they commit acts of terrorism, you're going to have to look in the eyes of the family members of the person who lost their life and you're going to have to explain why that happened. So that's why it's a tough balance. What we do is before anybody leaves, we -- I always ask to make sure that we have all of their biometrics -- their fingerprints, photograph -- so that we can catch them if they ever come into the United States. And obviously that also would be available to people out in other parts of the world -- my view is we ought to share it with our allies and friends. The key is to be able to make sure a person like that cannot come back in and masquerade as somebody else, and that's where the biometrics -- the prints and the face and stuff like that make a big difference. WESTIN: Okay. Let's come down in front and then we'll come back over here. Microphone's coming. QUESTIONER: Thank you. My name is Fredrick Iseman and I'm with Caxton-Iseman Capital. I'm also a member of the council's nuclear posture review, where some of these issues have been discussed. My question is that you mentioned investments that you'd like to see made in WMD prevention, and I just wanted to ask specifically what those are. Some of the things that have been thrown around are getting rid of the highly enriched uranium that's in research laboratories in the United States, enhancing the IAEA enforcement budget, and working foreign ports -- I don't know if those are on your list but I'd love to hear what your list is. SEC. CHERTOFF: Well, let me stick to the things that fall more or less in the domain of my department. I mean, obviously, the extent you can tighten up security for nuclear plants around the world, that's a really good thing. And, of course, preventing proliferation, preventing new nuclear powers is a critical thing. Here at home some of the things to do are, we want to go with the next generation of detection technology, which would be more precise and therefore -- it's not that it would detect more types of material; it's that it would have -- prevent fewer false positives, which actually makes things work more efficiently. Another initiative we have underway is to look at radioactive material that's not useful in a bomb but would be very useful -- in a nuclear bomb -- but very useful in a dirty bomb. It's not going to create a nuclear reaction but it will be contaminant. And some of these are quite common, including in medical facilities. We have a program underway now, over the next year -- maybe a little less than a year now, about eight months, it should be finished -- to lock down all those machines and make sure they're much harder to remove the material from. But ultimately we need to either move to a different kind of material or have machines that really don't allow access to the radioactive material inside. One thing I don't think we should do is 100 percent scanning in foreign ports. First of all, some of our foreign allies will not agree to do that. Second, in some ports the architecture of the port doesn't lend itself to that. And third, frankly, some ports are low risk. Now we are doing some of this now. We are doing some of it overseas in Pakistan and in Honduras and other parts of the world, but I have to say candidly I'm less worried about someone building a nuclear bomb in Britain and shipping it over from South Hampton. So I'm not sure Britain's an area where I would feel very strongly that we need to put scanning overseas. But there's a lot of work to be done, including work on the biological side here, on getting the capability to distribute the countermeasures and also to do the planning work. You know, people tend to think of expenditure as just stuff. Planning, thinking and exercising, which cost money, are the most critical part in having an effective response. WESTIN: Thank you. Down here. QUESTIONER: I'm Catherine Gay, a communications consultant. Quick question: How essential is it for us to capture bin Laden? I certainly understand that it would be from a psychological point of view. From a practical point of view, will it make an enormous difference if and when we capture him? SEC. CHERTOFF: It will make some difference. I mean, obviously he is a source of inspiration and he has a role to play in al Qaeda, but I think it's fair to say, as others have said publicly, that I don't think he's got a lot of freedom of movement wherever he's hiding. So I -- it's not going to be a magic bullet if he's killed or captured. It would certainly be a blow to al Qaeda, but, you know, they are -- like any other group they are developing a younger generation, and as that generation grows and gets maturity they will ultimately move forward. You know, we're seeing -- we saw Zarqawi for a while in Iraq. He was very aggressive and he, of course, was removed so he's not on the scene anymore. So I'm afraid the ideology in some form or another will be with us for a long time. And the individual actors may come and go, but this is going to be a persistent problem until change the strategic landscape. WESTIN: Thank you. Yes, sir? QUESTIONER: William Haseltine, The Haseltine Foundation. Do you have thoughts on how you would recommend reform of the oversight --congressional and judicial oversight of your department? SEC. CHERTOFF: Yes. QUESTIONER: (Laughs.) SEC. CHERTOFF: I think we've said, particularly in the House of Representatives, there are many committees that assert jurisdiction over us. Now, I'm -- I welcome oversight like every other department gets with an authorizing committee and an appropriating committee. And, by the way, our appropriators -- and I met with the chairman of our House committee yesterday on the way out the door -- our appropriators I'm very happy with. They do a very good job. We don't always agree, but you've got one appropriating subcommittee in each House that deals with our stuff, and I think it's a very good relationship. The House of Representatives on the authorizing side -- because we have so many different authorizers, what happens is they all have their own priorities and their priorities are often different. And to be candid, sometimes they're influenced by things like whose turf, a particular project -- as in who would get to control the money. That is bad for the department because we're answering to too many different masters. So I would urge, as others have, that the Homeland Security Committee, which is what was set up by Congress to be our oversight committee, be the principle committee of jurisdiction, and that would align the House with the Senate, which basically does that. And I think it'd be better for Congress and it would be better for us as well. WESTIN: Thank you. We'll go to the back and we'll come back to you, I promise. QUESTIONER: Hi, Bill Luers; I'm president of the United Nations Association. One of the reasons that your department was set up and the Director of National Intelligence was set up was to try to provide the president with -- and the whole system -- with more accurate information involving exchange of information among the various agencies in the intelligence community. How has that worked out? And can you describe to us what types of things you've done to improve, and are you satisfied that enough has taken place? SEC. CHERTOFF: I can tell you in the eight years that have passed since I came into government with the administration -- I started out in Justice -- there's been a sea change in information sharing -- and certainly across the federal government. Because of the DNI -- the Director of National Intelligence -- the NCTC -- the National Counterterrorism Center -- and what we do, and FBI and everybody else, there is a much, much better integrated product and a process for making sure that all the intelligence is looked at by the relevant agencies in a systematic way. It doesn't mean that dissent is suppressed -- and we sometimes get reports where there may be dissenting analytic views -- but it means we're all getting access to the same product, the same information that we need to know. So I have not had an experience in the last few years where I felt I was shut out of anything that was necessary for me to know or appropriate for me to know. And I think that this is -- you know, it's a cultural change as much as an organizational change, because the culture of Washington is information is power -- I'm going to control my information and then I have more power. And the leadership of the intelligence community, to a man, whether it's Mike Hayden, or Mike McConnell, or Bob Mueller, or anybody else -- they've all worked to change that presumption into, we ought to be sharing; we are doing our job best when we are sharing with other people. WESTIN: Down here front -- yes, sir. Microphone -- it's coming. QUESTIONER: Julius Coles with Africare. One of the things that's been in the news quite recently is the fact that we're beginning to establish contact with foreign governments to take the detainees that are in Guantanamo to be -- (inaudible) -- there. It is obvious that all of them are not going to be taken and some of them are going to have to be incarcerated in the United States. What are the security implications of incarceration and future implications for trial, or what will happen to them? SEC. CHERTOFF: Now, that's a big question which the next administration's going to have to confront, which is why I think the president-elect indicated there'd be some complicated things to work out. I mean, there are practical issues, like, assuming you're going to incarcerate people, where are you going to put them? What community is going to want them? What are the implications not only for securing them but making sure that community doesn't become a target? There are legal issues. Even though in Guantanamo these individuals have basic legal rights like habeas corpus, when you set foot in the U.S. you get a whole additional group of legal rights. So you could wind up with a circumstance where someone starts to claim rights under the immigration laws. And that's really complicated and it would take hours to talk about so I won't talk about it here. But the short answer is these are exceptionally complicated legal issues. I might also point out that this issue is not limited to Guantanamo. There are now cases being filed in the courts about people being detained in Bagram Air Base in Afghanistan claiming they have a right to habeas corpus. Now, let's take the logic of this where it goes, because I think this is one of the challenging legal issues of our time. If habeas now extends around the world -- which was not true 20 years ago -- in World War II the courts were very clear; you don't get Habeas when you're overseas -- then every time you capture somebody, do they get to call the judge up and get released? Do you need a warrant to do that? And then that raises the even bigger question: Can you kill people in a war? Because after all, if it's all part of the criminal justice system -- we don't kill criminals in this country; we arrest them. These are really difficult questions. And, you know, I would venture to say of all the legal issues I've ever dealt with, this set of issues is the hardest because for many -- for decades we approached the world as if it was neatly divided into two categories -- criminal justice and war. We knew what war was; people, you know -- it was a battlefield, uniforms, planes. We knew criminal justice. And unfortunately the world did not confine itself to the categories. So now we have people who -- I mean, here's the question I'll leave you with: You find a leader of al Qaeda walking along the streets of New York. I don't think any of us would argue -- I should say, I wouldn't argue you can shoot him. I would argue you'd have to arrest him and you'd have to treat him under the laws of the country. A week later, same person walking along in Afghanistan. You can drop a bomb on him. How can that be? How can it be that depending on where you are -- here's that difference? That's a good question people are going to have to answer. WESTIN: I think we have time for about one more question. Yes, you, back here. Yes. QUESTIONER: Steve Handelman, John Jay College. Sir, in a recent interview you pinpointed a new danger that we face totally apart from the al Qaeda issue -- specifically the ongoing problems in Mexico started by the drug cartels. And you talked about the potential or the necessity for developing a surge capacity in case spillover of the violence there affected us -- the southern border and further inland. I wonder if you could elaborate a little bit more about what that danger is and what we're doing about it. SEC. CHERTOFF: Yes, I'd be happy to. This comes out of an interview I gave about a week ago in which I mentioned to a reporter from the Times that -- I've spoken a lot about the issue in Mexico and the fact that the president of Mexico is doing a heroic job tackling the drug cartels, which have really run free in some of the northern communities of Mexico for many years now. And he's taken them on and they are reacting, unsurprisingly but unfortunately, with unbelievable violence. And not just against the police and the public officials, although they're assassinating public officials and killing police, but they attack innocent citizens, and they do it barbarically. They're actually using some of the tactics that you can see being used in Iraq, literally to terrorize the government, to terrorize the population, to try to push back on President Calderon. Now, you know, we're helping them. We've got the Merida Initiative, which is critically important. We're giving him money, tools, advice, instruction, all those kinds of things. And he's got the determination. Nevertheless -- although I hope for the best, I prepare for the worst -- so we have -- we've seen an uptick in violence at the border, mainly directed against the border patrol. But I can unfortunately imagine a circumstance under which that violence crossed over, either because the cartels were getting more and more desperate and because they were angry at our help to Mexico and they wanted to lash back or because the cartels prevailed and then they began to push against us. And so what we've done is we've got a plan in place with our various components to make sure we can put, basically our SWAT teams and our similar capabilities at the border if necessary, and we've got a backup plan with the Department of Defense so that if we did get a surge of violence that threatened to spread across the border, we would be able to meet it. You know, supposing, for example, a drug cartel was chasing somebody and they got to a port of entry and tried to follow them into the United States, we'd want to be able to respond to that. But there's a larger issue, which is as we think about the threats that we face in the world; everybody knows about al Qaeda, Hezbollah, the FARC, other things. I believe this potential threat and what's at stake has been understudied in this country. I have a lot of faith in Calderon. I think he will prevail. But everybody needs to understand that it's in our national interest that he does prevail. When we went -- when the president went to Congress for the Merida Initiative, people were complaining, "Why are you putting the money in Mexico? Give it to our sheriffs on the border." What the president understood is the place to strike the enemy is where the enemy's head is at. You don't put the money where the enemy's arms and legs are. And the head is in these communities in Mexico. If we don't get this right and if you had organized criminal groups, including some with military training, operating with impunity in northern Mexico, we would find ourselves in a very, very dangerous situation from a variety of standpoints. So to me that is top of the list of national security concerns, you know, in the next administration. WESTIN: And with that, we're right at 2:00. I want to, first of all, thank everyone for coming and participating, and the level of interest is reflected by how many people -- and I apologize to you -- who had questions we didn't get to. And most important, thank you very much. Thank you for your time, but also thank you for your service. (Applause.) SEC. CHERTOFF: Thank you. .STX (C) COPYRIGHT 2009, FEDERAL NEWS SERVICE, INC., 1000 VERMONT AVE. NW; 5TH FLOOR; WASHINGTON, DC - 20005, USA. ALL RIGHTS RESERVED. ANY REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION IS EXPRESSLY PROHIBITED. UNAUTHORIZED REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION CONSTITUTES A MISAPPROPRIATION UNDER APPLICABLE UNFAIR COMPETITION LAW, AND FEDERAL NEWS SERVICE, INC. RESERVES THE RIGHT TO PURSUE ALL REMEDIES AVAILABLE TO IT IN RESPECT TO SUCH MISAPPROPRIATION. FEDERAL NEWS SERVICE, INC. IS A PRIVATE FIRM AND IS NOT AFFILIATED WITH THE FEDERAL GOVERNMENT. NO COPYRIGHT IS CLAIMED AS TO ANY PART OF THE ORIGINAL WORK PREPARED BY A UNITED STATES GOVERNMENT OFFICER OR EMPLOYEE AS PART OF THAT PERSON'S OFFICIAL DUTIES. FOR INFORMATION ON SUBSCRIBING TO FNS, PLEASE CALL CARINA NYBERG AT 202-347-1400. THIS IS A RUSH TRANSCRIPT. ------------------------- DAVID WESTIN: Good afternoon. I'm David Westin, and I'm privileged to be able to be here with the secretary today. I have a few remarks and I have a script here. I'll make sure I get them all right. First of all, welcome to today's Council on Foreign Relations meeting. Very important: Please turn off -- I just did -- your cell phones and your BlackBerrys and any other wireless devices. It's not just so that we don't interrupt the secretary when he's talking, but also, it will interfere with the amplification system in the room. And I want to remind everyone that this meeting is indeed on the record. And the Council of Foreign Relations, I think, will be putting it on their website, as I recall. And with that, the way this works, for those of you who may not have been here before, is we'll talk for about 30 minutes or so and then we'll open it up to the floor for all of you to ask questions. But before I ask the secretary any questions, first of all, let me introduce the man who needs no introduction: Secretary Chertoff. You all have read, I hope, the brief synopsis of his distinguished career. He's been a distinguished law enforcement official for some time. And he gave up his lifelong tenure as a 3rd Circuit Court of Appeals judge to become the second secretary of Homeland Security where he's been for almost four years. SECRETARY MICHAEL CHERTOFF: Yes -- almost exactly four. WESTIN: And the two things that I think are true, that are not in your CVR, number one, he clerked for not only Justice Brennan -- the distinguished Supreme Court judge -- but also Murray Gurfein, that a number of you in the room I suspect will remember, a wonderful 2nd Circuit Court of Appeals judge whom I knew. And he also, I think this is true, is the son of and the grandson of Talmudic scholars. Is that a fact? SEC. CHERTOFF: Well, Rabbis. I'm going to stop you when you -- (off mike). (Laughter.) WESTIN: So with that, we'd love to hear your opening remarks and then we'll ask some questions. Thank you very much for being here. SEC. CHERTOFF: David, thank you. And thank you to the Council for hosting me. I think I've been here once before and I've also had the opportunity to meet with members of the council down in Washington as we've talked about various homeland security issues. I was going to begin by recalling a fair day in the middle of a September during my time in office when there was a cataclysmic event. And as a consequence of that event, there were really profound changes in the way the American government operated. The executive took some steps -- excuse me -- that were in the view of some an unprecedented exercise of power and there's criticism for that. The legislature moved some major legislation and there's a little bit of buyer's remorse about that. There were all kinds of legal issues that were thrown up. There were mistakes that were made. There were claims that there wasn't enough transparency about what was going on. And you probably think I'm talking about September 11th, 2001, but I'm actually talking about September 15th, 2008 -- the financial crisis -- because in the wake of the financial crisis, the fettering of Lehman and the cascading meltdown, you saw much of the same kind of vigorous government action, and some of the same criticism of that action, that occurred on September 11th, 2001 when the World Trade Center physically fell down instead of financially fell down. This past September, after the collapse of Lehman and the beginning of the meltdown, we had the unprecedented passage of the TARP, which I think began as three pieces of paper. We had members of Congress going to the executive and asking the secretary of the Treasury to change the rules on his own -- simply lift some of the restrictions and do things that hadn't been originally contemplated or promised. And in fact, the secretary -- under the president's leadership -- took very vigorous action. That action has not been free from criticism. Mistakes have been made. There have been complaints about a lack of transparency about the way the TARP is operating. I mean, even now as we speak, there is a demand for ever more dramatic, energetic and fast action to deal with a crisis that threatens the underpinnings of our financial system. Pretty much all these things could be said about September 11th. In the wake of September 11th, Congress passed the Patriot Act. It actually spent much more time on that then the TARP, but even so, people have complained from time to time that it was too quickly. The executive acted very vigorously. The president used all of the powers at his disposal and there's criticism of that. There are not doubt that some mistakes were made and there's certainly been complaints about lack of transparency. So what's my point? My point is not that we've done the wrong thing in reacting to the financial crisis. My point is that in the middle of a crisis, in the middle of an emergency you have two choices: You can either act swiftly and decisively, and inevitably that's going to be less than perfectly transparent or perfectly executive; or you can spend an awfully long amount of time thinking about what to do, in which case you will have a mounting crisis of confidence and a failure and paralysis in government. And so my contention is that the steps that we took on September 11th -- and the steps we took on September 15th -- are both right in the context of an emergency. And just as there's been some buyer's remorse after September 11th and some after-the-fact hindsight criticism after September 11th, I guarantee you that in two years or three years, every -- probably not going to wait that long -- everything that was done in the emergency after September 15th and everything that'll be done in the next sixth months will be subject to the hindsight and the luxury of criticism after the fact. So my point is, all emergencies in many ways are not alike. And the test is not -- the question is not the specific measures. The question is: Will government take vigorous action to stop the bleeding, to prevent further problems along the lines of the original emergency and perhaps most fundamentally, to restore public confidence? I believe the answer is that government should do that. But I also believe that those who make those decisions must realize that just as night follows day, they will surely be criticized after the fact all of the flaws and imperfections and speedy execution will be held up under a spotlight. So bottom line is don't get in the business of dealing with crises and emergencies if you're not prepared to deal with the heat after the fact. And that's my opening. WESTIN: That's very interesting and persuasive in many respects. I want to ask about a few things, but before that let me pick up on what you're talking about, because I think I take your implicit point: that those of us who aren't in the middle have it easy to sit back and look at it and second guess and criticize. At the same time, sometimes it might appear to those of us on the outside -- and you can take 9/11 or this last September -- sometimes might have the impression that those who are making decisions get quite defensive afterwards. I mean, what is -- is there a useful part to that second guessing and criticism, not just a carping part? SEC. CHERTOFF: No, there is, David. And I've said this before, so I'm not making news and I'm not -- WESTIN: It's okay to make news. Go ahead! (Laughter.) SEC. CHERTOFF: I'm not making news. I'm not being a Johnny-come-lately revisionist historian. I think after the initial emergency measures are in place, it is appropriate to stand back at some point and look and recalibrate at what you've done. I gave a speech -- I quote myself only in order to put a prior consistent statement on the record. I remember in 2003 when I was a judge I said -- I gave a speech and I said, look, we've done, I think about as good a job balancing in the war against terror as we can, but it hasn't been perfect. So the time has come to get together with Congress and to work to recalibrate some of the measures. We may decide some of the things we did were not enough. We may decide some of the things we did were too much. We may decide some of them can be done better in a different way. And I think there's a little bit of a missed opportunity on both sides of Pennsylvania Avenue, because it wasn't -- it didn't seem possible to get together with Congress and do a dispassionate revision and adjustment of what had been done after 9/11. That may simply reflect the fact that there was an election campaign coming up, but it may be the political temper. And one of the problems with some of the poison in Washington is an inability to do that. So I believe that now with a new administration there's another opportunity to recalibrate. Recalibrate does not mean abandon, throw over and expunge. And if anyone thinks that that's appropriate, I think that would be a great misjudgment. But I think it is appropriate to recalibrate. And I will also venture to say that it will certainly be true in a year or two years it will be appropriate to recalibrate what's being done in the financial area, because there'll no doubt be some mistakes. WESTIN: So with that, let me start with some specifics and let's start with the news. All of us woke up this morning and heard that Osama bin Laden apparently -- as far as we can tell -- put out a new statement that had to do with Gaza and implicitly about the president-elect and things. We've seen a number of these statements come out, and for those of us who are not on the inside, I think we all puzzle over them. I mean, do they really have significance? Is there anything to be read into them? And I'm sure there are limits on what you can say, but either about this statement or generally, when something like that comes out, do you look for things in that? Does that have any real significance for you or is that just a propaganda statement? SEC. CHERTOFF: Well, we always look at statements to see is there some hidden code. Is it indicative of some operational thing that's going to occur? There's been the theory that from time to time, when bin Laden has made statements about how he's given the West a chance to convert and become his religious disciples and we've turned that down, that what he's trying to do is essentially create the predicate or the justification for a weapon of mass destruction attack by showing he gave us one last chance to come over to his side and we didn't do it. But I can't think of a time that we've actually found any real operational significance in the statements. You have to look at the statements as part of the battle of ideas. And that's where a lot of the long-term strategic struggle is. And what's interesting to read in the statement is what is he talking about? Because it tells you what they're feeling defensive about. For example, in the last year or so there's been some push back from a number of clerics, who had originally supported a very extreme form of Islam, beginning to argue that this is actually hurting innocent Muslims and questioning whether, in fact, the violence was appropriate under Islamic law. This really struck at the heart of bin Laden's message and his ideology. So Zawahiri got on and attacked the clerics and he issued videotapes talking about how the clerics are wrong. And there was actually debate about this, because it was about the legitimacy of the ideological movement which bin Laden is leading. Likewise, about a year or so ago, he gave a speech which he -- in which he tried to hitch his star to a whole lot of things: globalization, economic problems. And he's always very big on tapping into current events. I view that as a little bit of a sign of insecurity, because I think what he's trying to do is get at the head of whatever parade is marching down the street. So I think there's a lot of value from an intelligence standpoint strategically, but I don't -- at least in my experience -- haven't yet seen these statements as a sign that, you know, the missiles are coming or the bombs are about to go off. WESTIN: Another specific: Mumbai around Thanksgiving time. What, if anything, did we learn from that? What did that teach us? SEC. CHERTOFF: Well, I'm happy to say that we anticipated the possibility of this kind of an attack in a general sense, because we did launch a small boat strategy here in the United States that's precisely designed to deal with small boats being the attack method. And of course, we've seen that in the past with the USS Cole or the USS The Sullivans. So it was not a surprise to have this kind of an attack. It was well executed. I think it was probably a wake up call to hotel companies and others in the travel and entertaining business and the softer target area that they can't assume that all attacks are going to be directed at public transportation; that they have a responsibility to prepare themselves for both making harder to attack a hotel or a restaurant or a social event, but also to have resiliency in place -- to have a plan in place that allows people to quickly respond and recover. And I think one of the things that emerged in the press was that the Indians didn't have a unified plan that enabled a swift response. And actually, frankly, a lot of what our department is designed to do and has done over the last few years is to build that unified plan that gets the responders and the preventers and the law enforcement -- everybody at the same table with a single, integrated planning system in place. WESTIN: How far along in that spectrum are we, do you think? SEC. CHERTOFF: For much -- WESTIN: When you take the soft targets particularly? SEC. CHERTOFF: Certainly with respect to things in terms of the government's responsibility, the government's domain, I think we're quite far along. We're not done, but we've made a lot of progress. If you look at the private sector, where we partner through our department, you get a mixed picture. Some entities like chemical plants we've looked at very closely. They're actually in -- we've tiered them according to risk and they've actually made a lot of progress. We've done the same thing with train lines and things of that sort. When you get to hotels and really soft targets, I think you've got a real range of reactions. Some, I think, are very good. Some, I think, have not paid a lot of attention to it. We in the government can't protect all the hotels. You know, we do interact with that sector of the economy. We give them guidance; we give advice. We have put out information about lessons learned from Mumbai so that people can assimilate them. But I worry that in this economic environment it's easy to take the view that you should spend your money on the immediate concern you have, which is your payroll and your supplies and the things you need to run on a day-to-day basis and that issues like security can be pushed off. The difficulty with that is it's very unpersuasive the day the attack comes and then everything collapses. Because once you have a serious attack with a loss of life, it's going to be fatal -- it can be fatal or almost fatal to the business, depending on what it is. So it's important, even as we worry about things like the financial crisis, to be very focused on the need to continue to invest against perhaps low probability, but very, very high consequence in all of our personal lives and our businesses. WESTIN: But should we be expecting to see increased security at shopping malls, at hotels? I mean, after -- it 2006, right, with the plot with the liquids? SEC. CHERTOFF: Right. WESTIN: And after that, it changed air travel. We all have to have only three ounces and you have to put it in a transparent bag and all of that. After the Mumbai thing, I don't think -- I didn't see much of a change at all. In other words -- I know there was exercise here in New York City where the mayor and the police chief did something the hotels, but we don't see anything. Maybe it's behind the scenes. SEC. CHERTOFF: Well, I think there are two answers to that. One is the architecture of the aviation system's different than the architecture of the travel and leisure industry as a whole. Aviation is centralized. The areas that it takes place are clearly identifiable. It also happens to be a federal responsibility, so we expect and we're authorized to put federal assets as well as local assets into security. When you get to hotels, they're in private hands. We don't have federal police that go out and patrol hotels and malls. And frankly, local police, although they may do some of that -- and I know here in New York they do pay attention targets that they perceive as potential high-value targets -- even so, we don't have the capability, certainly at the federal level, but probably most local levels, to actually do the work of patrolling. That's really got to be done by the owners. But the other thing is the architecture of a hotel; the architecture of a shopping center is such that you can't run it the way you run an airport. If you put magnetometers and had long lines in the shopping center and your hotel, you're not going to have much business. So it's a balance and that's why we talk about risk management. And risk management means not elimination of risk, not guarantee against risk, but it means what is the appropriate investment in security that doesn't actually subvert the basic function of what it is you're trying to accomplish? And it's tricky. It's an art, not a science, because you're leaving a little vulnerability because you can't afford to destroy your business in order to protect it. WESTIN: So turn to the more general -- we're talking about risk management. Looking back on your tenure, first, what did you accomplish or what do you have in place that you most want your successor -- and I know you know Napolitano is replacing you. What do you most want her and the agency to continue to do or to expand on? What is important to you in your legacy that it not go away? SEC. CHERTOFF: I think a couple of things. I think the biggest would be maybe the screening of our borders -- the ability to have much better visibility to who comes across our borders than we ever had before. It's not a job that's done, but it's a job where an enormous amount of progress has been made. Let me take you back to before 2001. Before 2001, we did not capture the fingerprints of every visitor coming through our airports. Now we not only get their two fingerprints, we get their 10 fingerprints. The value of this is we can compare it against latent fingerprints that we pick up in safe houses and battlefields all over the world. And we can identify someone who's been on a battlefield, whose name we don't know, but who will turn up when they cross the border or when they apply for a visa when we match their fingerprints. And we have found people ranging from criminals to people who are -- there was one fellow whose fingerprint appeared on a piece of paper in a safe house where a terrorist plotting that occurred in Europe. And he applied for a visa and they picked up the fingerprint when he gave his fingerprints at the visa office. It turned out, as it happens, there was an innocent reason why his fingerprint was on that piece of paper in that location, but that's exactly what you want to know. So that's an important program. We now gather commercial information from the airlines coming across the Atlantic and the Pacific that tell us some basic data about everybody who's coming into the country -- how they purchased their ticket, their contact information, their previous travel segments, things of that sort. That enables us to create linkages between people whose names may not be on a watch list, but who are connected to someone who we know to be a terrorist, because for example, they have a common source of payment or because they traveled together on two prior segments of a trip. We had a case recently where we detected a person who's part of a terrorist organization using precisely that data, and that person is now in custody. So that's a proven technique that actually works. In terms of our scanning at ports: We now scan for radiation at virtually 100 percent of our container cargo companies. We didn't have that prior to 2001. And even between the borders -- although this is a matter of some controversy -- we have much -- we've doubled the Border Patrol; we've built tactical infrastructure and technology the likes of which the Border Patrol never dreamed of. And that has resulted in a reduction not only of smuggling of humans coming across, but drug smuggling has gone down. We're actually becoming more of a maritime domain through these semi-submersible kind of half submarines that the Coast Guard keeps intercepting. So to me that screening, which is I think a significant part of the reason why we are seeing a tax in Europe and in other parts of the world that have not been successful here, I think it's very important to keep that going. WESTIN: Okay, what's the flip side? What's the thing you didn't have time to get to or it didn't go as far as you'd like that you'd most like them to do as they come in? SEC. CHERTOFF: David, we were late on the cyber security because it was hard for us as a department to figure out how we could be adding value in cyber security, given the fact that the Internet is almost entirely in private hands and is culturally very resistant to government regulation and government intrusion. And so the question was, you know, we created a forum for people to exchange information. We had a team called U.S. SERT, an emergency reaction team that was capable of giving a warning when we knew an attack was underway and helping people figure out how to deal with it. But I felt it kind of weak tea, given the threat. About a year and a half ago the director of National Intelligence and head of NSA met with me and we talked about, was there a way we could combine their capabilities and our authorities in a fashion that would preserve their domain and prevent them from encroaching into a civilian domain, but that would give us the ability to really bring some advanced tools to the table. And the consequence of those meetings and a lot of very, very good planning among a number of agencies including DOD and DOJ and our own agency, was a strategy for cyber security, which the president got personally very engaged in and launched in January of 2008. We've made a lot of progress in that. We have reduced the number of vulnerable entry points to government domains. We are beginning to deploy the next level of our intruding detection capability that gives us real-time warning, and we're working on what I will call the 3.0 version of this, which would actually give us the ability to intercept malicious attacks before they can actually hit the target. So we've made a lot of progress but there's a lot to be done, not only finishing the deployment but helping the private sector on a voluntary basis with some of the techniques we've developed, dealing with the issue of quality assurance for the software to make sure software doesn't become a basis for people to implant Trojan horses or other kinds of malicious software when you buy the computer, and also raising the general level of protection against insiders. So I would say that if I was going to devote a priority over the next year or two, it would be to making sure that we continue to build on the momentum of last year in the cyber area. WESTIN: When I talked to you earlier in your tenure in your office in Washington and I asked you the question, what's the biggest threat, you said it's -- as I recall, if my recollection is right -- a weapon of mass destruction on U.S. soil by a terrorist group. Has your view changed since then? That's probably three years ago. SEC. CHERTOFF: No, it's consistent. WESTIN: Is it? SEC. CHERTOFF: It is consistent, and I want to be careful to define "biggest." WESTIN: Right. SEC. CHERTOFF: "Biggest" doesn't mean most likely to happen. It means if you look at probability, vulnerability, and consequence as a formula for risk, although the probability is lower than other attacks, we are quite vulnerable because it's the nature of a weapon of mass destruction that it's very hard to protect against and the consequence can be astronomical. So a biological weapon or a nuclear weapon would be, to my mind, just light years beyond what we've experienced. And from my standpoint, while local law enforcement and state authorities do a good job with homegrown terrorism kind of -- if I can use the term -- garden variety or routine types of terrorism, the federal government is uniquely situated to deal with the issue of coordinating on a weapon of mass destruction. Now, the good news is I don't think this is around the corner. The bad news is the investments that we need to continue to build protection and resiliency against a weapon of mass destruction are long-term investments. And that means we have to make them now even though the consequences and the need for them may not be felt for five or 10 years. And I was talking to Pete Peterson a few minutes ago about the financial question, the issue of, you know, why we don't get with long-term problems now. Well, this is the analogue to the get (ph) crisis and the financial crisis in the physical world. If you don't invest in the capability to refine detection or protection against these kinds of weapons of mass destruction, when the day comes that it's around the corner, you're not going to have the time to deal with it, and then the consequences will be catastrophic. So, to me, just as I think we've got to deal with our economic ticking time bombs, this is the kind of physical ticking time bomb we have to invest against. WESTIN: You say it's not the highest probability, or it's not around the corner I think is what you said, sometimes, though -- in fact, we had one in the last, I think, two weeks or so -- there are reports that come out from academics and others that actually sometimes put percentage numbers against the likelihood of a nuclear device or a biological attack, and usually it's a pretty high percentage within a pretty short period of time: In the next three or four years there's going to be a 50-percent chance. You must look at those. I mean, is it -- are they worth the paper they're written on, in your opinion? I mean, what are they based on? SEC. CHERTOFF: Well, first of all, I think when you actually try to assign a percentage -- it reminds me when I was a trial lawyer, you know, I had clients that would say to me, what's the percentage chance I'm going to win the case? I'd go, 82.5 percent. (Laughter.) Now, truthfully, that's unverifiable. I mean, you either win or you lose. You're never going to know whether you were in the 18 percent or the 82 percent. So I don't think you can percentage qualify it. I do think you can make some broad generalizations, which I think are consistent with the most recent report. A nuclear device is probably the hardest to make -- the hardest type of weapon of mass destruction and therefore the least probable, unless one were stolen or -- and this is obviously the biggest concern -- unless a country which possessed the nuclear device were to make it available to a terrorist group or deliver itself. That's why we obviously look at proliferation as essentially the handmaiden of this kind of weapon of mass destruction. The picture with respect to a biological weapon is not quite a rosy, if I can describe anything as rosy. We've had a biological weapon. We've had the anthrax attacks. We know it is possible to make anthrax from ingredients that occur in nature, not like you have to refine it like enriched uranium. And it's a question of know-how and weaponizing. So the people with the know-how are the threat, and it's very, very difficult to detect a biological weapon because you can carry it in in a very, very small vial, or you could even make it, if you have the know-how, here in the United States. So a key element is the ability to respond and mitigate. The good news on most of these biological weapons is we do have countermeasures and antidotes. The bad news it's hard to distribute them. We've got big stockpiles, but how do you get it in the hands of people, perhaps in a 24-hour period in the big city? And that's why I've argued for a plan of actually letting at least some populations have what we call medical kits -- you know, med kits -- that would have in those kits some of the most likely countermeasures for a biological attack. You would give it to people, maybe first responders -- we're already doing this with some people in the post office -- and maybe you distribute it in the general population and give it to businesses, and the idea would be when the balloon goes up you would tell people, now you should, as a precautionary measure, take some Cipro or take something else. Some people would say that's alarmist, and my problem is that until it happens it's going to sound alarmist. Once it does happen it's going to seem like common sense, just like about a year ago people would have said it's alarmist to believe that, you know, the Dow is going to fall several thousand points and the housing market is going to crash. We've now discovered that it's common sense to assume that. So, again, this is part of my mantra of let's make those investments now. WESTIN: Terrific. Thank you. So we could keep talking but it's your turn. I would ask for -- if you want to ask a question, put up your hand or stand up and wait until the microphone comes to you. And then if you'd identify yourself and your affiliation, and try to keep it to one question if you would. Talk right in the mike. So why don't we start back here? There's a lot of hands in the air, but we'll start there and I'll work my way around. Yes, sir? QUESTIONER: I'm Gary McDougal (sp). You know me from UPS. You deserve our thanks because in the last four years we've been okay, and it's hard to get rewarded for nothing happening. And so I think we need to recognize that. My question relates to connecting methods of interrogation to your information. Can you tell us if the current methods of interrogation have in fact produced valuable information for you that has minimized the risk of attack? SEC. CHERTOFF: Well, I'm probably not best situated to answer that because I'm the consumer of information, so whatever information is obtained, whether it's from signals intelligence or human intelligence or interrogation, I'm interested in the product. I don't always know -- in fact, I'm likely not to know exactly how it was obtained. So I have to rely, therefore, on someone like Mike Hayden said. Mike Hayden, the CIA director, has said that the methods of interrogation have produced really positive results that have led to plots being disrupted and things of that sort. You can always ask the question, well, was there another way of getting it? And the answer is it's hard to prove a negative or a counterfactual. The challenge you have is some people you can woo with honey; some people you have to, you know, put a little pressure on. Lest we be too delicate about this, I want to remind people, our criminal justice system, the one that is presided over by our federal courts and has repeatedly been upheld by the Supreme Court, doesn't allow physical coercion, but it does allow an awful lot of coercive interrogation, in a sense what we call plea bargaining. What plea bargaining is -- and some of you may know this very well -- what plea bargaining means is you have a very heavy charge over somebody, probably one that will send them to life; sometimes it will send their family away for life, and you basically strike a bargain where you say, I want information in return for reduced charges or you're going to go away to jail for the rest of your life. Now, that's not physical coercion, but anybody who thinks that "love bombing" the subject is wrong. That is very coercive. You are putting enormous pressure on people to get them to cooperate, but it's okay under our system. I might tell you, by the way, if you go to Europe, that's considered a barbaric system, and they would probably argue that system is the equivalent of, you know, abuse. So I guess I would say to you there's a long debate to be had by others, not me. I can only tell you the results we've gotten from all the techniques we've used -- and I can't always tell you which one leads to which result -- has given us our real actionable information. The last thing I would say is this, which I've experienced numerous times over the last four years, and I know my successor will experience. You get a little bit of threat information and it's very serious, and you have to try to determine if it's real or not real. If it's not real, if it's not really credible or specific, you don't want to disrupt the whole country. If it is, you may have to take some very disruptive measures and put some security in place that will be very inconvenient, so you have to make that judgment. And the last thing you want to have in that circumstance is to turn to your intelligence guys and say, well, what's the story, and have them say, we don't know because we're not allowed to collect any information that would tell you the answer. And so I think when you strike the balance -- and I know there are very strong arguments on both sides -- you've got to do it with a recognition, if not the experience, of what it's like to be in a room where you have to make the decision, which I -- and I've been in that room, and I've been very grateful to get all the information I was able to get from our intelligence community. WESTIN: Okay, there's one here, and we'll come back over here, I promise. QUESTIONER: Mr. Secretary, you're -- is this mike on -- your legacy certainly has been a good one in terms of the success in preventing further attacks of terrorists on this country. Indeed, that will go down as one of the major positive accomplishments of the Bush administration. Looking ahead, though, we can't expect this to last, can we? What needs to be done to close the gaps that you find still concerning in guarding against the weapons that you've just described? SEC. CHERTOFF: Actually that's a great question. I would say three things. Obviously we need to continue to use technology, intelligence gathering, organizational refinements to stay ahead of the curve in terms of what the enemy is doing -- better detection equipment, ideally equipment that's less intrusive, and we're working on some. I know no one likes to take their shoes off. We're working on some devices that would allow you to keep your shoes on. You know, this is a question of really having the technology that works. (Laughter.) So that's one thing. A second thing, though, is more strategic, which is to look at the long-term pool in which people recruit, and that's what my colleague Bob Gates talks about as soft power or Condee Rice talks about as soft power. It's changing the dynamic overseas and here at home -- but really less of a problem here at home than overseas -- to shift the tide against al Qaeda. It's very difficult to do because the government can't do it overtly. We've got to encourage the communities in which these ideologues are recruiting to send a message of tolerance and being mainstream as opposed to allowing these recruits to basically subvert a religion and misrepresent it in order to recruit people to an ideology. I know at our department, and others, we have done a lot of outreach. I've spent a lot of person time meeting with Muslim leaders, students and intellectuals here and overseas, and I think it's important we continue to do that because in the end, if you dry up the source of support, that's a very, very positive long-term solution. The third thing we need to do is we need to maybe do a little bit of a better job using our foreign aid and assistance to enable what we're trying to do to win those hearts and minds. We do an awful lot for foreign aid. You know, the president has done an amazing amount of investment with respect to AIDS and malaria. We've been out there when there was a tsunami, rescuing people. This generates positive results, but there's not always enough follow-through, and the follow-through was not always at the grassroots level. Sometimes it's at a high-altitude level. I was talking to a British Pakistani who is active in this area, about a week ago, and he was saying the British, they have less money to spend but the know how to get into the grass roots in these areas and work at the madrassas and at the individual community levels. And, frankly, I'm just reverse engineering what Hezbollah does. What Hezbollah and Hamas do is they take some of their money and they try to build social -- certainly Hezbollah -- social assistance networks as way of getting the allegiance of the population, which enables them to carry out their acts of violence. So those are the three elements: continuing with the stuff that we do that is hard power, including some of the things we do overseas, but also working on the soft power front and working to make our aid and assistance go a little bit further. WESTIN: Okay, back over there. And just to remind, please identify yourself and your affiliation so we have it for the record. QUESTIONER: Thank you. Mr. Secretary, my name is Roland Paul (sp). I'm a lawyer. My question follows logically from one of the earlier ones and draws on your experience in the Justice Department as much as in the Homeland Security, and also your brilliant background as a legal scholar. What do you -- could you give us a few words as to what you think the right approach is for the detention of suspected terrorists? I mean, it may be a modified POW, modified criminal, or may be a separate regime. Thank you. SEC. CHERTOFF: Okay, again, if you get a prior consistent statement in the statement in the record -- (laughter) -- so I don't look like I'm a Johnny-come-lately here. I think that we have to recognize that -- and I used the criminal justice system to prosecute terrorism cases when I was head of the Criminal Division. We did -- with Sauri (ph) we did a bunch of cases. So certainly for people captured in the U.S. it's a viable, good system that works in many cases. It does not work in every case. And there are cases where you can have perfectly good evidence, you can have electronic surveillance -- you can have a videotape of someone in another country literally planning a terrorist attack, and you catch them here in the country, you think, wow, I've got great evidence on videotape; it's not admissible in our courts because you can't get the witnesses in because the other country doesn't want to publicly acknowledge that it videotaped or that it's cooperating with the United States. What do you do? So you do need to find an alternative system, at a minimum to detain someone like that. And I think that's what we've been seeing as the topic of debate since 2001. I believe -- and I said this in 2003 -- the right answer is some kind of a system which Congress will have to enact -- it's going to have to be something Congress does -- that allows presentation of evidence, but maybe not according to the typical rules, of federal judges, someone that's, you know, visibly seen as a neutral arbiter, but one that allows a little flexibility in the process so that it's not necessarily the same standard of proof and so that you can keep classified material secret, and so that you can use evidence that is reliable but doesn't necessarily meet the technical requirements of a criminal case. I actually think there are systems that we use that are similar to that in certain kinds of legal regimes, and I won't bore you with what they are, but I've talked about this over the years with a number of people on all sides of the debate. I actually believe you could get an 80-percent consensus. There would be about 20 percent where there would be disagreement. The difficultly has been mechanically to get the right people to sit down and do this, and it's been hard in an environment where these issues become matters of hot political debate and therefore there's more heat than light shed on them. Again, new administration. There's an opportunity to take a deep breath, get some people together on all sides of the issue. I think we all fundamentally want the same thing: We don't want to treat people who are innocent unfairly, but we don't want to have people who are dangerous going around. And let's build the system and get Congress to ratify it. And the phrase I used, you know, five years ago, which I think is right, is we need to have a sustainable architecture, one that we're going to be able to live with and be comfortable with over the next decade or so. WESTIN: Okay, thanks. Down here. Yes, sir. We'll get a -- no, just behind you. Sorry. QUESTIONER: Herb London, Hudson Institute. Michael, nice to see you. SEC. CHERTOFF: Thank you. It's good to see you. QUESTIONER: And I think we are all owe you a debt for the extraordinary work that you've done. The question I have relates to a recent Pentagon report that suggests 61 detainees from Guantanamo are now back on the battlefield. I wonder -- and this is presumably based on forensic information about where these people have gone. I wonder what kind of tracing do you do of these people, and what do we know about them when they return to the battlefield? SEC. CHERTOFF: Well, there are people who have returned to the battlefield when they've been released. There was one case where -- (inaudible) -- a Kuwaiti was released and then ultimately found a way into Iraq as a suicide bomber. And that's the flip side of the coin about detainees. If you let them go and they commit acts of terrorism, you're going to have to look in the eyes of the family members of the person who lost their life and you're going to have to explain why that happened. So that's why it's a tough balance. What we do is before anybody leaves, we -- I always ask to make sure that we have all of their biometrics -- their fingerprints, photograph -- so that we can catch them if they ever come into the United States. And obviously that also would be available to people out in other parts of the world -- my view is we ought to share it with our allies and friends. The key is to be able to make sure a person like that cannot come back in and masquerade as somebody else, and that's where the biometrics -- the prints and the face and stuff like that make a big difference. WESTIN: Okay. Let's come down in front and then we'll come back over here. Microphone's coming. QUESTIONER: Thank you. My name is Fredrick Iseman and I'm with Caxton-Iseman Capital. I'm also a member of the council's nuclear posture review, where some of these issues have been discussed. My question is that you mentioned investments that you'd like to see made in WMD prevention, and I just wanted to ask specifically what those are. Some of the things that have been thrown around are getting rid of the highly enriched uranium that's in research laboratories in the United States, enhancing the IAEA enforcement budget, and working foreign ports -- I don't know if those are on your list but I'd love to hear what your list is. SEC. CHERTOFF: Well, let me stick to the things that fall more or less in the domain of my department. I mean, obviously, the extent you can tighten up security for nuclear plants around the world, that's a really good thing. And, of course, preventing proliferation, preventing new nuclear powers is a critical thing. Here at home some of the things to do are, we want to go with the next generation of detection technology, which would be more precise and therefore -- it's not that it would detect more types of material; it's that it would have -- prevent fewer false positives, which actually makes things work more efficiently. Another initiative we have underway is to look at radioactive material that's not useful in a bomb but would be very useful -- in a nuclear bomb -- but very useful in a dirty bomb. It's not going to create a nuclear reaction but it will be contaminant. And some of these are quite common, including in medical facilities. We have a program underway now, over the next year -- maybe a little less than a year now, about eight months, it should be finished -- to lock down all those machines and make sure they're much harder to remove the material from. But ultimately we need to either move to a different kind of material or have machines that really don't allow access to the radioactive material inside. One thing I don't think we should do is 100 percent scanning in foreign ports. First of all, some of our foreign allies will not agree to do that. Second, in some ports the architecture of the port doesn't lend itself to that. And third, frankly, some ports are low risk. Now we are doing some of this now. We are doing some of it overseas in Pakistan and in Honduras and other parts of the world, but I have to say candidly I'm less worried about someone building a nuclear bomb in Britain and shipping it over from South Hampton. So I'm not sure Britain's an area where I would feel very strongly that we need to put scanning overseas. But there's a lot of work to be done, including work on the biological side here, on getting the capability to distribute the countermeasures and also to do the planning work. You know, people tend to think of expenditure as just stuff. Planning, thinking and exercising, which cost money, are the most critical part in having an effective response. WESTIN: Thank you. Down here. QUESTIONER: I'm Catherine Gay, a communications consultant. Quick question: How essential is it for us to capture bin Laden? I certainly understand that it would be from a psychological point of view. From a practical point of view, will it make an enormous difference if and when we capture him? SEC. CHERTOFF: It will make some difference. I mean, obviously he is a source of inspiration and he has a role to play in al Qaeda, but I think it's fair to say, as others have said publicly, that I don't think he's got a lot of freedom of movement wherever he's hiding. So I -- it's not going to be a magic bullet if he's killed or captured. It would certainly be a blow to al Qaeda, but, you know, they are -- like any other group they are developing a younger generation, and as that generation grows and gets maturity they will ultimately move forward. You know, we're seeing -- we saw Zarqawi for a while in Iraq. He was very aggressive and he, of course, was removed so he's not on the scene anymore. So I'm afraid the ideology in some form or another will be with us for a long time. And the individual actors may come and go, but this is going to be a persistent problem until change the strategic landscape. WESTIN: Thank you. Yes, sir? QUESTIONER: William Haseltine, The Haseltine Foundation. Do you have thoughts on how you would recommend reform of the oversight --congressional and judicial oversight of your department? SEC. CHERTOFF: Yes. QUESTIONER: (Laughs.) SEC. CHERTOFF: I think we've said, particularly in the House of Representatives, there are many committees that assert jurisdiction over us. Now, I'm -- I welcome oversight like every other department gets with an authorizing committee and an appropriating committee. And, by the way, our appropriators -- and I met with the chairman of our House committee yesterday on the way out the door -- our appropriators I'm very happy with. They do a very good job. We don't always agree, but you've got one appropriating subcommittee in each House that deals with our stuff, and I think it's a very good relationship. The House of Representatives on the authorizing side -- because we have so many different authorizers, what happens is they all have their own priorities and their priorities are often different. And to be candid, sometimes they're influenced by things like whose turf, a particular project -- as in who would get to control the money. That is bad for the department because we're answering to too many different masters. So I would urge, as others have, that the Homeland Security Committee, which is what was set up by Congress to be our oversight committee, be the principle committee of jurisdiction, and that would align the House with the Senate, which basically does that. And I think it'd be better for Congress and it would be better for us as well. WESTIN: Thank you. We'll go to the back and we'll come back to you, I promise. QUESTIONER: Hi, Bill Luers; I'm president of the United Nations Association. One of the reasons that your department was set up and the Director of National Intelligence was set up was to try to provide the president with -- and the whole system -- with more accurate information involving exchange of information among the various agencies in the intelligence community. How has that worked out? And can you describe to us what types of things you've done to improve, and are you satisfied that enough has taken place? SEC. CHERTOFF: I can tell you in the eight years that have passed since I came into government with the administration -- I started out in Justice -- there's been a sea change in information sharing -- and certainly across the federal government. Because of the DNI -- the Director of National Intelligence -- the NCTC -- the National Counterterrorism Center -- and what we do, and FBI and everybody else, there is a much, much better integrated product and a process for making sure that all the intelligence is looked at by the relevant agencies in a systematic way. It doesn't mean that dissent is suppressed -- and we sometimes get reports where there may be dissenting analytic views -- but it means we're all getting access to the same product, the same information that we need to know. So I have not had an experience in the last few years where I felt I was shut out of anything that was necessary for me to know or appropriate for me to know. And I think that this is -- you know, it's a cultural change as much as an organizational change, because the culture of Washington is information is power -- I'm going to control my information and then I have more power. And the leadership of the intelligence community, to a man, whether it's Mike Hayden, or Mike McConnell, or Bob Mueller, or anybody else -- they've all worked to change that presumption into, we ought to be sharing; we are doing our job best when we are sharing with other people. WESTIN: Down here front -- yes, sir. Microphone -- it's coming. QUESTIONER: Julius Coles with Africare. One of the things that's been in the news quite recently is the fact that we're beginning to establish contact with foreign governments to take the detainees that are in Guantanamo to be -- (inaudible) -- there. It is obvious that all of them are not going to be taken and some of them are going to have to be incarcerated in the United States. What are the security implications of incarceration and future implications for trial, or what will happen to them? SEC. CHERTOFF: Now, that's a big question which the next administration's going to have to confront, which is why I think the president-elect indicated there'd be some complicated things to work out. I mean, there are practical issues, like, assuming you're going to incarcerate people, where are you going to put them? What community is going to want them? What are the implications not only for securing them but making sure that community doesn't become a target? There are legal issues. Even though in Guantanamo these individuals have basic legal rights like habeas corpus, when you set foot in the U.S. you get a whole additional group of legal rights. So you could wind up with a circumstance where someone starts to claim rights under the immigration laws. And that's really complicated and it would take hours to talk about so I won't talk about it here. But the short answer is these are exceptionally complicated legal issues. I might also point out that this issue is not limited to Guantanamo. There are now cases being filed in the courts about people being detained in Bagram Air Base in Afghanistan claiming they have a right to habeas corpus. Now, let's take the logic of this where it goes, because I think this is one of the challenging legal issues of our time. If habeas now extends around the world -- which was not true 20 years ago -- in World War II the courts were very clear; you don't get Habeas when you're overseas -- then every time you capture somebody, do they get to call the judge up and get released? Do you need a warrant to do that? And then that raises the even bigger question: Can you kill people in a war? Because after all, if it's all part of the criminal justice system -- we don't kill criminals in this country; we arrest them. These are really difficult questions. And, you know, I would venture to say of all the legal issues I've ever dealt with, this set of issues is the hardest because for many -- for decades we approached the world as if it was neatly divided into two categories -- criminal justice and war. We knew what war was; people, you know -- it was a battlefield, uniforms, planes. We knew criminal justice. And unfortunately the world did not confine itself to the categories. So now we have people who -- I mean, here's the question I'll leave you with: You find a leader of al Qaeda walking along the streets of New York. I don't think any of us would argue -- I should say, I wouldn't argue you can shoot him. I would argue you'd have to arrest him and you'd have to treat him under the laws of the country. A week later, same person walking along in Afghanistan. You can drop a bomb on him. How can that be? How can it be that depending on where you are -- here's that difference? That's a good question people are going to have to answer. WESTIN: I think we have time for about one more question. Yes, you, back here. Yes. QUESTIONER: Steve Handelman, John Jay College. Sir, in a recent interview you pinpointed a new danger that we face totally apart from the al Qaeda issue -- specifically the ongoing problems in Mexico started by the drug cartels. And you talked about the potential or the necessity for developing a surge capacity in case spillover of the violence there affected us -- the southern border and further inland. I wonder if you could elaborate a little bit more about what that danger is and what we're doing about it. SEC. CHERTOFF: Yes, I'd be happy to. This comes out of an interview I gave about a week ago in which I mentioned to a reporter from the Times that -- I've spoken a lot about the issue in Mexico and the fact that the president of Mexico is doing a heroic job tackling the drug cartels, which have really run free in some of the northern communities of Mexico for many years now. And he's taken them on and they are reacting, unsurprisingly but unfortunately, with unbelievable violence. And not just against the police and the public officials, although they're assassinating public officials and killing police, but they attack innocent citizens, and they do it barbarically. They're actually using some of the tactics that you can see being used in Iraq, literally to terrorize the government, to terrorize the population, to try to push back on President Calderon. Now, you know, we're helping them. We've got the Merida Initiative, which is critically important. We're giving him money, tools, advice, instruction, all those kinds of things. And he's got the determination. Nevertheless -- although I hope for the best, I prepare for the worst -- so we have -- we've seen an uptick in violence at the border, mainly directed against the border patrol. But I can unfortunately imagine a circumstance under which that violence crossed over, either because the cartels were getting more and more desperate and because they were angry at our help to Mexico and they wanted to lash back or because the cartels prevailed and then they began to push against us. And so what we've done is we've got a plan in place with our various components to make sure we can put, basically our SWAT teams and our similar capabilities at the border if necessary, and we've got a backup plan with the Department of Defense so that if we did get a surge of violence that threatened to spread across the border, we would be able to meet it. You know, supposing, for example, a drug cartel was chasing somebody and they got to a port of entry and tried to follow them into the United States, we'd want to be able to respond to that. But there's a larger issue, which is as we think about the threats that we face in the world; everybody knows about al Qaeda, Hezbollah, the FARC, other things. I believe this potential threat and what's at stake has been understudied in this country. I have a lot of faith in Calderon. I think he will prevail. But everybody needs to understand that it's in our national interest that he does prevail. When we went -- when the president went to Congress for the Merida Initiative, people were complaining, "Why are you putting the money in Mexico? Give it to our sheriffs on the border." What the president understood is the place to strike the enemy is where the enemy's head is at. You don't put the money where the enemy's arms and legs are. And the head is in these communities in Mexico. If we don't get this right and if you had organized criminal groups, including some with military training, operating with impunity in northern Mexico, we would find ourselves in a very, very dangerous situation from a variety of standpoints. So to me that is top of the list of national security concerns, you know, in the next administration. WESTIN: And with that, we're right at 2:00. I want to, first of all, thank everyone for coming and participating, and the level of interest is reflected by how many people -- and I apologize to you -- who had questions we didn't get to. And most important, thank you very much. Thank you for your time, but also thank you for your service. (Applause.) SEC. CHERTOFF: Thank you. .STX (C) COPYRIGHT 2009, FEDERAL NEWS SERVICE, INC., 1000 VERMONT AVE. NW; 5TH FLOOR; WASHINGTON, DC - 20005, USA. ALL RIGHTS RESERVED. ANY REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION IS EXPRESSLY PROHIBITED. UNAUTHORIZED REPRODUCTION, REDISTRIBUTION OR RETRANSMISSION CONSTITUTES A MISAPPROPRIATION UNDER APPLICABLE UNFAIR COMPETITION LAW, AND FEDERAL NEWS SERVICE, INC. RESERVES THE RIGHT TO PURSUE ALL REMEDIES AVAILABLE TO IT IN RESPECT TO SUCH MISAPPROPRIATION. FEDERAL NEWS SERVICE, INC. IS A PRIVATE FIRM AND IS NOT AFFILIATED WITH THE FEDERAL GOVERNMENT. NO COPYRIGHT IS CLAIMED AS TO ANY PART OF THE ORIGINAL WORK PREPARED BY A UNITED STATES GOVERNMENT OFFICER OR EMPLOYEE AS PART OF THAT PERSON'S OFFICIAL DUTIES. FOR INFORMATION ON SUBSCRIBING TO FNS, PLEASE CALL CARINA NYBERG AT 202-347-1400. THIS IS A RUSH TRANSCRIPT. -------------------------
  • United States
    A Conversation with Michael Chertoff
    Play
    Watch U.S. Department of Homeland Security Secretary Michael Chertoff reflect on government actions during crises and lessons learned from his time in the Bush administration.
  • Homeland Security
    The Closing of the American Border
    Edward Alden goes behind the scenes to tell the story of the Bush administration's struggle to balance security and openness in the wake of the September 11, 2001, terrorist attacks.