From Smirking Chimp
Jeffrey Sterling, the case officer for the CIA's covert "Operation Merlin," who was convicted in May 2015 for allegedly revealing details of that operation to James Risen of the New York Times, was released from prison in January after serving more than two years of a 42-month sentence. He had been tried and convicted on the premise that the revelation of the operation had harmed U.S. security.
The entire case against him assumed a solid intelligence case that Iran had indeed been working on a nuclear weapon that justified that covert operation.
But the accumulate evidence shows that the intelligence not only did not support the need for Operation Merlin, but that the existence of the CIA's planned covert operation itself had a profound distorting impact on intelligence assessment of the issue. The very first U.S. national intelligence estimate on the subject in 2001 that Iran had a nuclear weapons program was the result of a heavy-handed intervention by Deputy Director for Operations James L. Pavitt that was arguably more serious than the efforts by Vice-President Dick Cheney to influence the CIA's 2002 estimate on WMD in Iraq.
The full story the interaction between the CIA operation and intelligence analysis, shows, moreover, that Pavitt had previously fabricated an alarmist intelligence analysis for the Clinton White House on Iran's nuclear program in late 1999 in order to get Clinton's approval for Operation Merlin.
Pavitt Plans Operation Merlin
The story of Operation Merlin and the suppression of crucial intelligence on Iran's nuclear intentions cannot be understood apart from the close friendship between T Pavitt and CIA Director George Tenet. Pavitt's rise in the Operations Directorate had been so closely linked to his friendship with Tenet that the day after Tenet announced his retirement from the CIA on June 3, 2004, Pavitt announced his own retirement.
Soon after he was assigned to the CIA's Non-Proliferation Center (NPC) in 1993 Pavitt got the idea of creating a new component within the Directorate of Operations to work solely on proliferation, as former CIA officials recounted for Valerie Plame Wilson's memoir, Fair Game. Pavitt proposed that the new proliferation division would have the authority not only to collect intelligence but also to carry out covert operations related to proliferation, using its own clandestine case officers working under non-official cover.
Immediately after Tenet was named Deputy Director of the CIA in 1995, Pavitt got the new organization within the operations directorate called the Counter-Proliferation Division, or CPD. Pavitt immediately began the planning for a major operation targeting Iran. According to a CIA cable declassified for the Sterling trial, as early as March 1996 CPD's "Office of Special Projects" had already devised a scheme to convey to the Iranians a copy of the Russian TBA-486 "fireset" -- a system for multiple simultaneous high explosive detonations to set off a nuclear explosion. The trick was that it had built-in flaws that would make it unworkable.
A January 1997 declassified cable described a plan for using a Russian e'migre... former Soviet nuclear weapons engineer recruited in 1996 to gain "operational access" to an Iranian "target." The cable suggested that it would be for the purpose of intelligence on the Iranian nuclear program, in the light of the fact that the agency had not issued a finding that Iran was working on nuclear weapons.
But in mid-March 1997 the language used by CPD to describe its proposed covert operation suddenly changed. Another declassified CPD cable from May 1997 said the ultimate goal was "to plant this substantial piece of deception information on the Iranian nuclear weapons program." That shift in language apparently reflected Tenet's realization that the CIA would need justify the proposed covert operation to the White House, as required by legislation.
With his ambitious plan for a covert operation against Iran in his pocket, Pavitt was promoted to Associate Deputy Director of Operations in July 1997. On February 2, 1998, CPD announced to other CIA offices, according to the declassified cable, that a technical team from one of the national laboratories had finished building the detonation device that would include "multiple nested flaws," including a "final fatal flaw" ensuring "that it will not detonate a nuclear weapon."
An official statement from the national lab certifying that fact was a legal requirement for the CIA to obtain the official Presidential "finding" for any covert operation required by legislation passed in the wake of the Iran-Contra affair.
Pavitt obtained the letter from the national laboratory in mid-1999 a few weeks after it was announced he would be named Deputy Director of the CIA for Operations.
But that left a final political obstacle to a presidential finding: the official position of the CIA' s Intelligence Directorate remained that Iran did not have a nuclear weapons program. The language of the CIA's report to Congress for the first half of 1999, which was delivered to Congress in early 2000, contained formulations that showed signs of having been negotiated between those who believed Iran just have a nuclear weapons program and those who did not.