In the mid-1990s, the CIA suffers “brain drain,” as budget restrictions cause the agency to get rid of many of its most experienced officials. CIA official Michael Scheuer will later explain: “They called it a buyout program through the whole federal government, and they thought they were going to get rid of the deadwood. What happened was they lost the age-40-to-48 group of very strong potential senior officers, those people who couldn’t stand the bureaucracy anymore. They couldn’t stand the crap, so they retired, and we lost a whole generation.” In 1997, George Tenet becomes the new CIA director (see July 11, 1997) and he attempts to stop the loss of talent. He even initiates a massive recruitment drive for the CIA’s Directorate of Operations’ clandestine service. But according to a Vanity Fair article, “unfortunately, the training of these new spies remained very much old-school: they were taught how to operate undercover in European embassies, but not how to infiltrate Islamic terrorist cells.” Tenet’s choice for the latest deputy director of operations typifies the problem. His pick is Jack Downing, a 57-year-old veteran CIA officer who served as station chief in Moscow and Beijing during the Cold War. Scheuer will comment, “Downing was a Marine, and then he was a very, very successful officer during the Cold War, but he didn’t have a clue about transnational targets, and he didn’t like analysts.” [Vanity Fair, 11/2004]
1993: CIA Declares Bin Laden Significant Financial Backer of Islamic Militants
In 2007, former CIA Director George Tenet will write, “As early as 1993, [the CIA] had declared bin Laden to be a significant financier backer of Islamic terrorist movements. We knew he was funding paramilitary training of Arab religious militants in such far-flung places as Bosnia, Egypt, Kashmir, Jordan, Tunisia, Algeria, and Yemen” (see July-August 1993). [Tenet, 2007, pp. 100]
1993-1999: Hijackers Alhazmi and Almihdhar Fight for Al-Qaeda
Of all the 9/11 hijackers, Nawaf Alhazmi and Khalid Almihdhar have the longest records of involvement with al-Qaeda. CIA Director Tenet calls them al-Qaeda veterans. According to the CIA, Alhazmi first travels to Afghanistan in 1993 as a teenager, then fights in Bosnia with Alhazmi (see 1995). Almihdhar makes his first visit to Afghanistan training camps in 1996, and then fights in Chechnya in 1997. Both swear loyalty to bin Laden around 1998. Alhazmi fights in Afghanistan against the Northern Alliance with his brother, Salem Alhazmi. He fights in Chechnya, probably in 1998. [Observer, 9/23/2001; ABC News, 1/9/2002; US Congress, 6/18/2002; Los Angeles Times, 9/1/2002; US Congress, 7/24/2003, pp. 131 
] He then returns to Saudi Arabia in early 1999 where he shares information about the 1998 US embassy bombings. However it is not clear what information he disclosed to whom or where he obtained this information. [US Congress, 7/24/2003, pp. 131 ] It is possible that some or all of this information came from the NSA, which is intercepting some of Alhazmi’s phone calls at this time (see Early 1999).
March-May 1996: US, Sudan Squabble over Bin Laden’s Fate
US demands for Sudan to hand over its extensive files about bin Laden (see March 8, 1996-April 1996) escalate into demands to hand over bin Laden himself. Bin Laden has been living in Sudan since 1991, at a time when the Sudanese government’s ideology was similar to his. But after the US put Sudan on its list of terrorism sponsors and began economic sanctions in 1993, Sudan began to change. In 1994, it handed the notorious terrorist “Carlos the Jackal” to France. In March 1996, Sudan’s defense minister goes to Washington and engages in secret negotiations over bin Laden. Sudan offers to extradite bin Laden to anywhere he might stand trial. Some accounts claim that Sudan offers to hand bin Laden directly to the US, but the US decides not to take him because they do not have enough evidence at the time to charge him with a crime. [Washington Post, 10/3/2001; Village Voice, 10/31/2001; Vanity Fair, 1/2002] Counterterrorism “tsar” Richard Clarke later will call this story a “fable” invented by the Sudanese and Americans friendly to Sudan. He will point out that bin Laden “was an ideological blood brother, family friend, and benefactor” to Sudanese leader Hassan al-Turabi, so any offers to hand him over may have been disingenuous. [Clarke, 2004, pp. 142-43] CIA Director George Tenet later will deny that Sudan made any offers to hand over bin Laden directly to the US. [US Congress, 10/17/2002] The US reportedly asks Saudi Arabia, Egypt, and Jordan to accept bin Laden into custody, but is refused by all three governments. [Coll, 2004, pp. 323] The 9/11 Commission later will claim it finds no evidence that Sudan offers bin Laden directly to the US, but it does find evidence that Saudi Arabia was discussed as an option. [9/11 Commission, 3/23/2004] US officials insist that bin Laden leave Sudan for anywhere but Somalia. One US intelligence source in the region later will state: “We kidnap minor drug czars and bring them back in burlap bags. Somebody didn’t want this to happen.” [Washington Post, 10/3/2001; Village Voice, 10/31/2001] On May 18, 1996, bin Laden flies to Afghanistan, and the US does not try to stop him (see May 18, 1996).
Late 1996: CIA Definitively Confirms Bin Laden Is Not Just Financier, but US Is Slow to Act
By late 1996, the CIA definitively confirms that Osama bin Laden is more of a leader of militants worldwide than just a financier of them. [US Congress, 7/24/2003] CIA Director George Tenet will later comment, “By 1996 we knew that bin Laden was more than a financier. An al-Qaeda defector [Jamal al-Fadl] told us that [bin Laden] was the head of a worldwide terrorist organization with a board of directors that would include the likes of Ayman al-Zawahiri and that he wanted to strike the United States on our soil” (see June 1996-April 1997). [Tenet, 2007, pp. 102] Yet the US will not take “bin Laden or al-Qaeda all that seriously” until after the bombing of US embassies in Africa in 1998. [Miller, Stone, and Mitchell, 2002, pp. 213] Dan Coleman, the FBI’s top al-Qaeda expert, helps interrogate al-Fadl in 1996 and 1997 (see June 1996-April 1997), and Coleman comes to the conclusion that the US is facing a profound new threat. But according to journalist Robert Wright, Coleman’s reports “met with little response outside a small circle of prosecutors and a few people in the [CIA and FBI] who took an interest…” Michael Scheuer, head of the CIA’s bin Laden unit, is interested, as is John O’Neill, who heads the New York FBI office that specializes in bin Laden cases. But O’Neill and Scheuer hate each other and do not cooperate. [Wright, 2006] Al-Fadl’s information will not turn into the first US indictment of bin Laden until June 1998 (see June 8, 1998).
1997: CIA Deems Saudi Intelligence ‘Hostile Service’ Regarding Al-Qaeda
The CIA’s bin Laden unit Alec Station sends a memo to CIA Director George Tenet warning him that the Saudi intelligence service should be considered a “hostile service” with regard to al-Qaeda. This means that, at the very least, they could not be trusted. In subsequent years leading up to 9/11, US intelligence will gather intelligence confirming this assessment and even suggesting direct ties between some in Saudi intelligence and al-Qaeda. For instance, according to a top Jordanian official, at some point before 9/11 the Saudis ask Jordan intelligence to conduct a review of the Saudi intelligence agency and then provide it with a set of recommendations for improvement. Jordanians are shocked to find Osama bin Laden screen savers on some of the office computers. Additionally, the CIA will note that in some instances after sharing communications intercepts of al-Qaeda operatives with the Saudis, the suspects would sometimes change communication methods, suggesting the possibility that they had been tipped off by Saudi intelligence. [Risen, 2006, pp. 183-184]
1997: CIA Establishes Renditions Branch, Helps with Up to 70 Renditions Before 9/11
A Renditions Branch is established at the CIA’s Counterterrorist Center. Its job is to find militant leaders and then assist their abduction. The US government has been rendering suspects for four years (see 1993), and the CIA has had a dedicated program for this since the summer of 1995 (see Summer 1995). [9/11 Commission, 7/24/2004, pp. 276] Although some specific rendition operations are known (see Summer 1998, July 1998-February 2000, and Late August 1998), the total before 9/11 is not. Estimates vary, but generally fall into a similar range: 
Citing a public statement by CIA Director George Tenet, 9/11 commission deputy executive director Chris Kojm will say “70 terrorists were rendered and brought to justice before 9/11;” Shortly after this, Tenet himself will confirm there were “over 70” renditions; [9/11 Commission, 3/24/2004] Tenet will also say “many dozen” suspects were rendered before 9/11; [Central Intelligence Agency, 3/24/2004] The 9/11 Congressional Inquiry will say that the Branch is involved in “several dozen” renditions before 9/11; [US Congress, 7/24/2003, pp. 728 ] Michael Scheuer, a CIA manager responsible for operations against Osama bin Laden, will say that between 1995 and May 1999 “[t]he operations that I was in charge of concerned approximately 40 people…” [CounterPunch, 7/1/2006]
1997-May 29, 1998: US Creates Plan to Capture Bin Laden, but CIA Director Tenet Cancels It
In 1997 and early 1998, the US develops a plan to capture Osama bin Laden in Afghanistan. A CIA-owned aircraft is stationed in a nearby country, ready to land on a remote landing strip long enough to pick him up. However, problems with having to hold bin Laden too long in Afghanistan make the operation unlikely. The plan morphs into using a team of Afghan informants to kidnap bin Laden from inside his heavily defended Tarnak Farm complex. Michael Scheuer, head of the CIA’s bin Laden unit, calls the plan “the perfect operation.” Gary Schroen, the lead CIA officer in the field, agrees, and gives it about a 40 percent chance of succeeding. [Clarke, 2004, pp. 220-221; Washington Post, 2/22/2004; Vanity Fair, 11/2004] The Pentagon also reviews the plan, finding it well crafted. In addition, there is “plausible denialability,” as the US could easily distance itself from the raid. Scheuer will comment, “It was the perfect capture operation becauase even if it went completely wrong and people got killed, there was no evidence of a US hand.” [Shenon, 2008, pp. 192] However, higher-ups at the CIA are skeptical of the plan and worry that innocent civilians might die. The plan is given to CIA Director George Tenet for approval, but he rejects it without showing it to President Clinton. He considers it unlikely to succeed and decides the Afghan allies are too unreliable. [Clarke, 2004, pp. 220-221; Washington Post, 2/22/2004; Vanity Fair, 11/2004] Additionally, earlier in May 1998, the Saudis promised to try to bribe the Taliban and try bin Laden themselves, and apparently Tenet preferred this plan (see May 1998). Scheuer is furious. After 9/11 he will complain, “We had more intelligence against this man and organization than we ever had on any other group we ever called a terrorist group, and definitive and widely varied [intelligence] across all the ends, and I could not understand why they didn’t take the chance.” [Vanity Fair, 11/2004] There will be later speculation that the airstrip used for these purposes is occupied and will be used as a base of operations early in the post-9/11 Afghan war. [Washington Post, 12/19/2001]
July 11, 1997: George Tenet Becomes New Director of CIA
George J. Tenet becomes the new director of the CIA. He will remain in the position well after 9/11. Tenet was never a CIA field agent, but started his government career as a Congressional aide. From 1993 to 1995 he was a senior intelligence staffer on the National Security Council. He was a CIA deputy director from 1995. In December 1996, John Deutch abruptly resigned as CIA director and Tenet was made acting director until he is confirmed as the new director in July 1997. [USA Today, 10/9/2002]
After July 11, 1997: CIA Obtains Domestic Call and Financial Information to Support ‘Black Ops’
Some time after he is appointed CIA Director (see July 11, 1997), but before 9/11, George Tenet negotiates a series of agreements with telecommunications and financial institutions “to get access to certain telephone, Internet, and financial records related to ‘black’ intelligence operations.” The arrangements are made personally by the companies’ CEOs and Tenet, who plays “the patriot card” to get the information. The arrangement involves the CIA’s National Resources Division, which has at least a dozen offices in the US. The Division’s main aim is to recruit people in the US to spy abroad. However, in this case the Division makes arrangements so that other intelligence agencies, such as the NSA, can access the information and records the CEOs agree to provide. [Woodward, 2006, pp. 323-5] There is a history of co-operation between the CIA’s National Resources Division and the NSA. For example, Monte Overacre, a CIA officer assigned to the Division’s San Diego office in the early 1990s, said that he worked with the NSA there, obtaining information about foreign telecommunications programs and passing it on to the Technology Management Office, a joint venture between the two agencies. [Mother Jones, 1/1998] One US official will say that the arrangements only give the CIA access to the companies’ passive databanks. However, reporter Bob Woodward will say that the programme raises “serious civil liberties questions and also demonstrate[d] that the laws had not kept pace with the technology.” [Woodward, 2006, pp. 324-5] There will be an interagency argument about the program after 9/11 (see (2003 and After)).
