More redaction before Sir Lawrence Freedman asserts that after UNSCOM withdrew from Iraq in the late 90s MI6 lost most of its sources... for those of you who dont know what UNSCOM is or what it had to do with spying here's a quick flashback.

SIS2: Well, I think, as this exercise gathered momentum, there was -- and I'm sure others will have made this comment -- very substantial pressure to generate new intelligence because at this juncture, fresh intelligence, new intelligence was at a premium and was in very short supply. So there was undoubtedly considerable pressure to generate new sources, new insights, and we were, in all honesty, not well placed to do that. Our access to Iraq was no better than it was. [redacted].
SIR LAWRENCE FREEDMAN: So essentially the position was that until the end of 1998, you had relied on UNSCOM.
SIS2: Not entirely.
SIR LAWRENCE FREEDMAN: And UNSCOM of course had had quite a good relationship with intelligence. Then you don't have it anymore. Iraq is not a big priority. Iraq becomes a big priority during the course of 2002. Almost immediately, you are expected to provide a dossier, which doesn't actually give you an awful lot of time to develop your resources. So essentially it takes place at a time when you are sort of scrambling around to find people. In the chronology that's quite important.
SIS2 eventually goes on to disown the dossier entirely. That is the 2nd dossier I think but I'm not sure. The dossier we saw was apparently a dossier based on a dossier. The original dossier that MI6 supplied. SIS2 seems to have the serious hump about this denying all knowledge of how dossier number 2 was machinated....
SIR LAWRENCE FREEDMAN: Thanks very much. Just a final question on the dossier. The further dossier, the dodgy one, that had an SIS input. But SIS were not particularly involved -- is that correct -- in its production?
SIS2: We were not, absolutely not, and I think we were rather shocked by the outcome of this. It was certainly not the case that we had been closely involved in the preparation of that document.
SIR LAWRENCE FREEDMAN: So the first you were aware of it was ...?
SIS2: To be honest, I can't remember when I first became aware of it, but I think it may actually have been when it came out. Certainly not much before.
…until after it came out. One would have thought a spy would have been better informed but there you are. This moves us on to the famous Alastair Campbell “unguided missile” quote.
SIS2 says “Of course, this was one of those situations where SIS was performing a function that the late Maurice Oldfield* used to call delivering inconvenient information, because this was not a welcome message that was coming”
*Maurice Oldfield (left) was C from 1973 to 1978. He was the first C to “go public”. Holding meetings for his favoured journalists at the Athenaeum club in Pall Mall (right). Eventually as everyone knew who he was ....pretending not to be who he was became tedious... and he sort of gave up. Unlike today where he'd have to undergo a press conference.
The Athenaeum Club on Pall Mall by DAVID ILIFF. License: CC-BY-SA 3.0
SIR MARTIN GILBERT: With regard to the other Islamic extremists who were making ground in Iraq and making common cause with the Ba'athists, did this come as a surprise, given their different ideologies?
SIS2: Are you talking here about Al Qaeda in Mesopotamia, ISI, the various acronyms under which it became known? Not especially, no. I think this was a classic case of opportunism and a coincidence of interests. I think the intensity of the violence to which this gave rise was initially a shock, and it took a while, I think, to appreciate how all this was wired together. But I think it came as no -- in terms of the Sunni, it came as no great surprise. I think the Shia in the south was another question. The emergence of Muqtada al-Sadr, that was probably more of a surprise because Muqtada is essentially more mercurial and difficult to predict as an individual.
SIR MARTIN GILBERT: With regard to the Sunni insurgency, can you give us perhaps a clearer picture of when this became clear? Witnesses have given us evidence that in a sense it was quite a long delayed process.
SIS2: To be honest, I do have a problem with dates and I'm trying to -- I think by the summer of 2003 [redacted] something more serious and structured was going on. This was not just general lawlessness.
SIR MARTIN GILBERT: With regard to the assessments of the Iranian impact, originally, I believe, our assessment was that Iran had not ordered attacks on coalition forces, although it had provided military training to Iraqis, and later we found that Iran had provided arms to the Shia insurgents. With hindsight, how accurate do you believe our first assessments were?
SIS2: Well, of course, it's very difficult to answer that question absolutely because Iran's position was changing all the time. It was never fixed. [redacted]. But I think the general perception was that Iraqis were Iraqi nationalists first and Shia second, so to speak, and I don't think that that essential judgment was incorrect. But, of course, the Iranians did have very substantial scope to influence events in Iraq, and as the situation unfolded, and I think the vulnerabilities of the coalition became more evident, so Iran itself became emboldened and willing to countenance greater levels of risk, albeit within limits. The Iranian involvement was always, I think, quite carefully calibrated to ensure that -- to minimise the risk of a smoking gun being detected.
SIS2: Well, not invade Iraq.
It seems by this time SIS2 is finding the whole process rather tiring and as the interview goes on the number of sarcastic comments in the transcript can definitely be seen to increase. After apologising for this “flippant comment” SIS2 goes on to offer more detailed analysis which is redacted. When later on Sir Roderic Lyne asks SIS2 to summarise on the question of intelligence validation he receives the equally blunt answer:
SIS2: I think it was simply down to the very febrile atmosphere within which this collection process was taking place. The pressure to generate results, I fear, did lead to the cutting of corners.
Later Sir Roderic Lyne asks if number 10 got SIS involved in actual policy making – a function it was never designed for…?
SIR RODERIC LYNE: In effect it crossed a line between its traditional roles of providing information and carrying out instructions that you have talked about earlier, and it actually got sucked into the process of policy making?
SIS2: Not exactly policy making as such, but perilously close to it, I would say. I think a fair criticism would be that we were probably too eager to please.
SIR RODERIC LYNE: And how would you counteract that? Do you think steps have since been taken that make this less likely to happen in the future?
SIS2: I don't think you can ever entirely inoculate yourself against this particular virus, but yes, certainly, as things stand at the moment, I think it would be more difficult for this kind of situation to arise. In 2005, when the new chief of the service took over*, board structures were very deliberately and board culture was very deliberately redesigned, I think to ensure that more systematic process was injected into these issues, thereby minimising the likelihood of something like this happening again.
*This is Sir John Scarlett
SIR RODERIC LYNE: Could you introduce an element of challenge to it, of somebody who was specifically there to be the guardian of the ark of the principles of SIS, or has that got to be done from outside?
SIS2: Well, I don't think there is a single way of dealing with this. Two aspects here. Firstly, the composition of the SIS board was significantly expanded, and by design, to inject more outside views. So there are two or three people on board who are not career intelligence officers, have different perspectives, and are expected to ask the, so to speak, commonsense questions. That's one area where I think a greater degree of control has to be exercised. But I think also the oversight mechanisms that exist have a role to play there as well in terms of challenge and asking questions about what things are done and why they are done.
He also asks how Jack Straw and Colin Powell ended up working towards different outcomes. To which the answer is “I don’t know”… but SIS2 clearly insinuates (again) that the FCO had it’s head firmly in the sand.
SIS2: It probably should have done, but I think that there was, if I may say, an element of hubris at work which made us less sensitive to that than we probably ought to have been.
SIS2’s general conclusion is that the service was too keen to please Number 10…


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