CBS NEWS: FBI Probes Pentagon Spy Case

(CBS):

CBS News has learned that the FBI has a full-fledged espionage investigation under way and is about to -- in FBI terminology -- "roll up" someone agents believe has been spying not for an enemy, but for Israel from within the office of the Secretary of Defense at the Pentagon.

60 Minutes Correspondent Lesley Stahl reports the FBI believes it has "solid" evidence that the suspected mole supplied Israel with classified materials that include secret White House policy deliberations on Iran.

At the heart of the investigation are two people who work at The American Israel Public Affairs Committee (AIPAC), a powerful pro-Israel lobby in Washington.

The FBI investigation, headed up by Dave Szady, has involved wiretaps, undercover surveillance and photography that CBS News was told document the passing of classified information from the mole, to the men at AIPAC, and on to the Israelis.

CBS sources say that last year the suspected spy, described as a trusted analyst at the Pentagon, turned over a presidential directive on U.S. policy toward Iran while it was, "in the draft phase when U.S. policy-makers were still debating the policy."

This put the Israelis, according to one source, "inside the decision-making loop" so they could "try to influence the outcome."

The case raises another concern among investigators: Did Israel also use the analyst to try to influence U.S. policy on the war in Iraq?

With ties to top Pentagon officials Paul Wolfowitz and Douglas Feith, the analyst was assigned to a unit within the Defense Department tasked with helping develop the Pentagon's Iraq policy.....

I have no idea yet how this plays. It depends on how high up this guy goes. From a political perspective, this is what one would say, unfortunate timing for the President. Right before his convention, the media is going to be asking whether Israel manipulated the Americans in the Iraq affair. That is not a nice place to be, even if you have a poll or two showing you not losing that badly.