Every year, the US Director of National Intelligence is required by law to submit to Congress a report on "the acquisition by foreign countries during the preceding 6 months of dual-use and other technology useful for the development or production of weapons of mass destruction (including nuclear weapons, chemical weapons, and biological weapons) and advanced conventional munitions".
This is the section of the full report, submitted earlier this month, concerning Iran:
I. Acquisition by Country
As required by Section 721 of the Fiscal Year 1997 Intelligence Authorization Act, the following are country summaries of acquisition activities (solicitations, negotiations, contracts, and deliveries) related to weapons of mass destruction (WMD) and advanced conventional weapons (ACW) that occurred from 1 January through 31 December 2008. This report focuses on key countries that we assess are seeking WMD capabilities.
Iran
Nuclear
We assess that Iran had been working to develop nuclear weapons through at least fall 2003, but that in fall 2003 Iran halted its nuclear weapons design and weaponization activities, and its covert uranium conversion- and enrichment-related activities. We judge that the halt lasted at least several years, and that Tehran had not resumed these activities as of at least mid-2007. We do not know whether Iran currently intends to develop nuclear weapons, although we assess Tehran at a minimum is keeping open the option to develop nuclear weapons by continuing to develop a range of technical capabilities that could be applied to producing nuclear weapons, if a decision is made to do so.
During the reporting period, Iran continued to expand its nuclear infrastructure and continued uranium enrichment and activities related to its heavy water research reactor, despite multiple United Nations Security Council Resolutions since late 2006 calling for the suspension of those activities.
• In 2008, Iran continued to make progress enriching uranium at the underground cascade halls at Natanz with first-generation centrifuges, and in testing and operating second-generation centrifuges at the pilot plant there.
• In November 2008, Iran announced it had about 5,000 centrifuges operating at Natanz. The International Atomic Energy Agency (IAEA) reported that between mid-December 2007 and November 2008, Iran fed about 8,080 kilograms of uranium feed gas into its cascades, and produced about 555 kilograms of low enriched uranium (LEU) gas (uranium hexafluoride) at an enrichment level appropriate for reactor fuel, a significant improvement from the 75 kilograms of LEU gas it had produced in 2007.
• Iran has also fed small amounts of uranium feed gas to its second generationcentrifuges—the IR-2, since January 2008, and the IR-3, since April 2008.
• Iran in January 2008 received the final delivery of the initial batch of uranium fuel purchased from Russia required to operate the nuclear reactor at Bushehr. Delays in the project pushed the reactor's startup time into 2009.
• Iran in 2008 continued construction of the reactor buildings at the IR-40 Heavy Water Research Reactor, including installing a dome on the reactor containment building by mid-November.
• The IAEA in 2008 continued to investigate the "alleged studies" documentation — information indicating Iran conducted military-led, covert uranium conversion and nuclear weaponization work prior to 2003. According to the November 2008 Director General's Report to the Board of Governors, the "alleged studies" issue remains unresolved and the IAEA continues to call on Iran to provide further clarification.
Ballistic Missiles
Iran has continued to develop its ballistic missile program, which it views as its primary deterrent. Iran is fielding increased numbers of short- and medium-range ballistic missiles (SRBMs, MRBMs) and we judge that Iran currently is focusing on producing more capable MRBMs. Iran's ballistic missile inventory is one of the largest in the Middle East.
The Shahab-3 MRBM, capable of striking Israel, was formally handed over to the Iranian military in July 2003. During a military parade in September 2007, Iran displayed a missile, referred to as the Ghadr-1, which Iranian officials claimed had a range of 1,800-km.
Iran's defense ministry in 2005 stated that it had successfully tested an engine for a 2,000km ballistic missile and implied it would have two-stages~a key technology in the development of longer-range ballistic missiles. In late November 2007, Iran's defense minister claimed Iran had developed a new 2000 km-range missile called the Ashura. Iranian officials on 12 November 2008 claimed to have launched a two stage, solid propellant missile called the Sejil with a range of 2,000 km.
As early as 2005, Iran has stated its intentions to send its own satellites into orbit. In 2005, Iran's first satellite with an imagery payload, Sina-1, was launched on a Russian rocket, and Iran signed a $132 million deal with a Russian firm to build and launch a communications satellite. As of January 2008, Tehran reportedly had allocated $250 million to build and purchase satellites. Iran announced it would launch four more satellites by 2010 to improve land and mobile telephone communications.
Iranian officials, including President Ahmadi-Nejad, claimed that Tehran in February 2008 launched a probe called the Kavoshgar ("towards orbit") and that this device is transmitting information back to Earth. Based on Iranian press footage of the launch, however, the vehicle—which looked similar to the Shahab-3 MRBM, a system that by itself probably does not have the capability to place an object into orbit—appeared to suffer an in-flight failure. Iran's President also announced Tehran would conduct two more rocket tests prior to launching a "home-produced" satellite into orbit later in 2008, and several Iranian news websites released photos of a new rocket called "Safir" that appears larger than Tehran's existing ballistic missiles. Iranian officials stated on 27 August 2008 that they had launched a smaller research rocket called the Kavosh-2.
Technologies used to build an SLV are directly applicable to the development of longer range ballistic missiles. Assistance from entities in China and North Korea, as well as assistance from Russian entities at least in the past, has helped Iran move toward self-sufficiency in the production of ballistic missiles. Iran still remains dependent on foreign suppliers for some key missile components, however. Iran also has marketed for export at trade shows guidance components suitable for ballistic missiles.
Chemical and Biological
We assess that Iran maintains the capability to produce chemical warfare (CW) agents in times of need and conducts research that may have offensive applications. Tehran continues to seek production technology, training, and expertise from foreign entities that could advance its capability to produce CW agents. We judge that Iran is capable of weaponizing CW agents in a variety of delivery systems.
Iran probably has the capability to produce some biological warfare (BW) agents for offensive purposes, if it made the decision to do so. We assess that Iran has previously conducted offensive BW agent research and development. Iran continues to seek dual-use technologies that could be used for BW.
Yep, him again. Fed lines by Fox's Neil Cavuto, Cheney blew more smoke with the demand that Government memoranda providing the effectiveness of torture be released, covering up the inconvenience that Government memoranda have been released and demonstrate the ineffectiveness of "enhanced interrogation". He raged against the next symbolic moment, the possible release of hundreds of photographs of the programme (think Abu Ghraib, magnified many times), and repeated how Obama is endangering the nation and the world.
CAVUTO: We’re getting word that by May 28th, up to potentially 2,000 pictures are going to be released by the White House showing various interrogation methods, up to 2,000. What do you think of that?
CHENEY: Well, I guess what I think is important is that there be some balance to what is being released. The fact of the matter is the administration appears to be committed to putting out information that sort of favors their point of views in terms of being opposed to, for example, enhanced interrogation techniques.
But so far they’ve refused to put out memos that were done by the CIA that I’ve requested be declassified that show the positive results of the detainee program, and all of the information and the intelligence we were able to garner from these high-value detainees.
CAVUTO: And you say there are at least two such CIA memos that point to...
CHENEY: Two specifically that I requested.
CAVUTO: To the enhanced interrogation and that it did yield results.
CHENEY: Yes, well, that specifically talked about detainees, about the contributions that we got to our overall intelligence picture. Publicly General Hayden, who used to be director of the CIA, said as late as 2006 a majority of the intelligence we had gotten about al Qaeda came from detainees, high-value targets like Khalid Sheikh Mohammed, like Abu Zubaydah, people that we captured during the course of our campaign against al Qaeda.
And they, of course, were obviously also the people that the debate has focused on with respect to enhanced interrogation techniques. So I...
CAVUTO: Have you spoken to anyone in the White House lately about this? And did they give you a head’s up, we’re going to release all of these interrogation...
(CROSSTALK)
CHENEY: Well, what I did was make a formal request for declassification through the National Archives, which is the way you do it, and then it goes out to the agency responsible, in this case, the CIA. And I’m still awaiting a formal answer from them.
CAVUTO: Your daughter, Liz, was on a rival news network this morning.
CHENEY: She was.
CAVUTO: And she made the comment that the White House should have called my dad, I’m paraphrasing here, Mr. Vice President, but it was clearly -- the inference was that that did not happen.
What happened? When this whole dust-up started happening on interrogation and then eliminating waterboarding, did anyone from the White House give you or President Bush a head’s up that this policy was about to be reversed?
CHENEY: Well, I didn’t discuss it with anybody in the administration, but I’m not offended by that. They campaigned all across the country, from one end of the country to the other against enhanced interrogation techniques, and made it very clear they were opposed to that. They called it torture.
I don’t believe it was torture. We had attorneys who gave us a clear guidance as to what was appropriate and what wasn’t. The reason we’ve gotten into this debate at all is because the administration saw fit to go back and release OLC opinions, opinions out of the Office of Legal Counsel and the Justice Department dealing with its classified program.
Now that’s a very rare occurrence. You don’t ordinarily release those opinions, especially when it deals with classified programs. They did it in a way that sort of blocked so far any real discussion of the results of the program, and instead focused upon the techniques themselves.
And they really began the debate then with the suggestions that perhaps people should be prosecuted for having participated in the program or the lawyers who gave us these opinions should be disbarred. I think it’s an outrage.
I think the proposition that a new administration can come in and in effect launch an attack on their predecessor because they disagreed with the legal advice that was given by the Justice Department or because they find that they don’t like the policies that were pursued by the prior administration.
It’s one thing to come in and change the policy, it’s an entirely different proposition to come in and say that you’re somehow going to go after the lawyers and the Justice Department or the agents who carried out that policy. I just -- I think that’s outrageous. And that’s why I’ve spoken out as I have to defend the policy and...
(CROSSTALK)
CAVUTO: But you have, but President Bush has not. And that, to your critics, is a sign of his statesmanship and your lack of it. What do you make of that?
CHENEY: Well, I don’t pay a lot of attention to what the critics say, obviously. From my standpoint, that a notion that I should remain silent while they go public, that I shouldn’t say anything while they threaten to disbar the lawyers who gave us the advice that was crucial in terms of this program, that I shouldn’t say anything when they go out and release information that they believe is critical of the program and critical of our policies, but refuse to put out information that shows the results of what we were able to achieve.
Bottom line is we successfully defended the nation for seven and a half years against a follow-on attack to 9/11. That was a remarkable achievement. Nobody would have thought that was possible, but it was. I believe it was possible because of the policies we had in place, which they’re now dismantling.
CAVUTO: So by that definition, are we more likely to be attacked now? Is that what you’re saying?
CHENEY: I think that we are stripping ourselves of some of the capabilities that we used in order to block, if you will, or disrupt activities by al Qaeda that would have led to additional attacks. I think that’s an important debate to have. I don’t think we should just roll over when the new administration says -- accuses of us committing torture, which we did not, or somehow violating the law, which we did not. I think you need to stand up and respond to that, and that’s what I’ve done.
CAVUTO: Have you raised this with President Bush? Have you talked with him and said, look, I’m going to go out and I’m going to be talking to Fox, I’m going to be talking, I want to let the world know how I feel?
CHENEY: You know, I’ve had a number of conversations on the telephone since January 20th.
CAVUTO: Any recently?
CHENEY: Those are -- oh, it’s been a couple of weeks. But we’re...
CAVUTO: How were those conversations? What do you talk about?
CHENEY: Well, those were private when we were in the White House and they remain so today.
CAVUTO: So you’re not going to tell me?
CHENEY: No.
CAVUTO: OK. Fine.
All right. We’re getting word out of “The Jerusalem Post,” Mr. Vice President, that Iran has deployed mobile ground-to-air and ground-to- sea missiles along the Strait of Hormuz, and perhaps beyond, in the Persian Gulf.
How bad is this getting?
CHENEY: Well, I haven’t seen the reports. I think it’s important to be aware of or recognize that Straits of Hormuz obviously are a key waterway, not just from the standpoint of the United States, but that about -- these numbers are rough, but about 20 percent of the world’s oil supply passes through those straits every day. It’s something close to 18, 19 million barrels that come out of the Gulf, come out of Saudi Arabia, Iran, Kuwait, and so forth. That’s the major export route, if you will, and so anything that potentially threatens the free flow of that traffic, obviously, would be of concern.
CAVUTO: Well, what they’re obviously doing is saying, you attack us, then we respond in spades (ph). And then the whole world is dealing with $100, $200 a barrel oil, right?
CHENEY: Well, I don’t know what they’re doing, obviously. I can’t speak for what the Iranians are up to. They’re difficult enough to follow when you’re talking to them, and we’re not talking to them and haven’t for a long time. But I do think...
CAVUTO: Well, we are making overtures to them, right? CHENEY: Well, the...
CAVUTO: This president is trying, and that the time for that type of behavior, as well as opening up more to folks like Hugo Chavez and all, the time is now for that, because we got nowhere (ph) this administration is doing. But you did, which was effectively to isolate these guys.
What do you make of that?
CHENEY: The Iranians have a track record. We tried to resolve the issue diplomatically. We worked with our European friends and allies. We tried to persuade them that they did not need to enrich uranium to weapons grade, that the Russians, for example, were prepared to sell them fuel for their reactor and then take the spent fuel back after the fuel had been used.
A lot of ways for them to acquire nuclear power-generating capabilities without producing weapons. They clearly seem to be in the business of wanting to produce weapons. We were unable to talk them out of it previously, and there was a very serious effort diplomatically, working through the United Nations and with the EU3, the way we refer to them, the British and the Germans and the French.
The fact is that, as far as we know, they’re still in the business of trying to produce that capability, and that would be a fundamental threat not only to the folks in the immediate region, but potentially others around the world, including the United States. They’re working on missile technology, and they can marry up a weapon with the missile, and they become a formidable power.
CAVUTO: President Obama is going to be in Egypt next month (INAUDIBLE), which he will use that nation as an address to the Muslim world. He is not stopping by Israel when he is in the neighborhood, so to speak. What do you make of that?
CHENEY: I don’t know that it has any significance. But obviously, I haven’t been part of scheduling for the new administration, so I don’t know what considerations go into that. But I don’t think I can attribute motives one way or the other.
CAVUTO: So, to Israelis who are concerned that maybe this administration, again, with a vested interest for the whole region at heart, is more inclined to engage Muslim nations, maybe even some radical nations. It’s giving some Israelis pause. Should it?
CHENEY: Well, I think it’s giving not only Israelis pause, it’s also - excuse me - creating concerns on the part of nearly everybody in the region. And I would put in that category, although I haven’t talked to him recently, the Saudis, the Gulf states, the Emirates and so forth, because they have been more concerned in recent years about developments in Iran than anything else, than any other issue in the area or the region. And that’s because they believe if you - if Iran acquires nuclear weapons, it’ll fundamentally change the dynamic in that part of the world.
CAVUTO: How close are they, by the way, do you think?
CHENEY: Well, you can get all kinds of estimates. They clearly have installed thousands of centrifuges. That’s their claim. But there have been inspections by the International Atomic Energy Agency that can give us fairly precise information on how many centrifuges are installed and so forth. In terms of how close they are, I - you know, there are estimates, but I can’t give you a precise read or take on how much it is.
CAVUTO: Well, what would U.S. policy be, Mr. Vice President, if were to see Benjamin Netanyahu act alone, unilaterally to take out those centrifuges?
CHENEY: Well, I can’t speak for the administration, obviously, and that’s where you need to go to find out.
CAVUTO: What would you think?
CHENEY: I would find it that it would be a reflection of the fact that the Israelis believe this is an existential threat to the state of Israel. That Iran has taken a position and supported it over the years, that Israel should cease to exist, should go out of business, and Iran remains one of the prime sponsors of terror in the world, especially Hezbollah, and that all things considered, I think the Israelis look at developments in Iran, and they have stated publicly that they believe a nuclear-armed Iran is something that fundamentally threatens their existence. So, I would expect them to try to do something about it.
CAVUTO: Soon?
CHENEY: I can’t predict that. I don’t - I obviously don’t know, and can’t predict what they’ll do or when they’ll do it.
CAVUTO: Defense Secretary Robert Gates fired General David McKiernan from leading (ph) Afghanistan and said that whatever we were doing - I’m paraphrasing here, sir - wasn’t working and that we need more of a special-operations guy than we supposedly have now, and saying that the battle game and plan for Afghanistan has changed. Has it?
CHENEY: I think there’s been a significant increase, obviously, in the focus on Afghanistan, which I think is good. We had completed a review of our policy in Afghanistan shortly before we left office, and then decided that we would not put it out at that point, that that would feed into whatever the Obama administration wanted to do and might help them form a sounder policy. One of the things they’ve done and I think makes good sense is send more troops. I also believe the decision yesterday to send Stan McChrystal, lieutenant general, to take over in Afghanistan is a very good one. Stan’s an absolutely outstanding officer. I’m not saying anything critical of General McKiernan, who’s leaving. But Stan McChrystal was head of the Joint Special Operations Command. He’s been a superb officer...
CAVUTO: So, you support that choice?
CHENEY: I think the choice is excellent, and you’d be hard put to find anybody better than Stan McChrystal to take on that assignment.
CAVUTO: If you don’t mind, sir, I’d like to go back to terror (ph) for a second, and...
CHENEY: Excuse me.
CAVUTO: Sure. Nancy Pelosi has been caught up in when did she know and how much did she know, as far as the waterboarding issue, elevated interrogation techniques, and says she was aware of a 2003 meeting, but the way it’s been characterized that she was aware of all the details is wrong, and that painting (ph) her any other way is wrong. What do you make of that?
CHENEY: I don’t know the specifics of what sessions she was in. I know she was listed in a memorandum I’ve seen, a timeline that talks about when various members were briefed that the agencies produced in the last few days as public documents.
CAVUTO: When you say “briefed,” briefed on specifically waterboarding?
CHENEY: Briefed on enhanced interrogation techniques.
CAVUTO: That include waterboarding.
CHENEY: I don’t know. I wasn’t in the meetings, and I can’t speak to the content of the meetings. I know what the intention was. I know that the CIA basically took the responsibility of briefing members of Congress, a few in number, chairman and ranking member of the intelligence committees about the program.
CAVUTO: Congresswoman Jane Harman was among those who did write the letter of protest.
CHENEY: I don’t know about that, but I...
CAVUTO: Now, she passed along her concern to Nancy Pelosi , who I guess went through the legislative channels, who didn’t want to disrupt the legislative channels, to let her do the speaking, if I’m interpreting it correctly. But what...
CHENEY: You’re down in the weeds now.
CAVUTO: I guess I am.
CHENEY: I’m generally, obviously, aware of the program. I’m aware of the fact...
CAVUTO: Would you say more (ph) people knew than are saying so about these interrogation techniques?
CHENEY: I think it paralleled the surveillance program, for example, the terrorist surveillance program that we ran where I ran the briefings. And we briefed every few months the chairman and ranking member, and at one point, the “Big 9,” the speaker and majority and minority leaders in the House and Senate, on the substance of the program, on what we were doing, on how we were doing it, sought their advice and guidance on whether we should continue it.
CAVUTO: Well, do you remember any of them, Mr. Vice President, saying, whoa, whoa, whoa! This is a little too far for our tastes. We don’t want this.
CHENEY: No. On the terrorist surveillance program, after we’d given them the brief in the Situation Room in the basement - I presided over it - I went around the table and asked if they thought we should continue the program. They were unanimous. Then I asked if they thought we should...
CAVUTO: Who was unanimous?
CHENEY: The speaker, the majority and minority leader of the House and Senate, as well as the chairman and ranking member of the Intelligence Committee.
CAVUTO: On everything that had been stipulated, including these interrogations?
CHENEY: No, on the terrorist surveillance program.
CAVUTO: Gotcha.
CHENEY: I’m just giving you an example. And then I asked if they thought we should go back and get additional congressional authority, and they said absolutely not. That would reveal the existence of the program. And I think what happened with respect to enhanced interrogation techniques is, the CIA did go up. They did brief the relevant people, and I think what often happens in these circumstances is once a controversy develops, then some of the people that were briefed get forgetful.
CAVUTO: Let me just, on one last foreign policy issue before we hit on some economics. I know your time is tight. On Gitmo. The administration’s intelligence director had said that detainees who are just misplaced and are here have a right to, among other things, and could get who are just misplaced and are here, have a right, to among other things, and could get welfare, for example. How do you feel about that?
CHENEY: I think it’s a terrible idea. While we were running things at Guantanamo, there were several hundred people that processed through there, that were held there for a period of time and were ultimately sent back to their home countries.
The ones that are remaining, about 245, are the hardcore, the worst of the worst. They’re cases have been reviewed, they were given an review down at Guantanamo, and they were kept in custody because we believe they constituted a threat to the United States, so they had some continuing value.
Of those that were released, we had about a 12 percent recidivism rate, 12 percent that went back into the terrorism business. I think the recidivism on the ones that are still there would be far higher. It includes people like Khalid Sheikh Mohammed, the mastermind of 9/11.
Now, I think they’re having a very hard time finding anybody around the world who wants to take these folks. I know when we tried to place a few Uighurs, Chinese terrorists...
CAVUTO: Right, right.
CHENEY: And while we were still in office, ultimately, the only country that would take them was Albania. Everybody else rejected them.
CAVUTO: Where do you think they’re going to end up?
CHENEY: Well, I think they need to keep Guantanamo open. I think it’s a mistake to try to close it. I think if you didn’t have it, you’d have to invent it. If you bring those people to the United States, I don’t know a single congressman who is going to stand up and say, gee, send me some terrorists. I’d like to have some al Qaeda-types living in my district. That’s not going to happen.
So I think they’re going to find someplace where they can locate these folks. Guantanamo is a great facility. It’s very well run. These people are very well treated. It’s open to inspection by the International Red Cross and the press and so forth. It’s a good facility, it’s an important program, and we ought to continue it.
CAVUTO: Senator Biden was making his, today, spin to a union group, saying, we have to rebuild the middle class and the way to do that is to help labor unions grow. What do you make of that?
CHENEY: Well, I’m not anti-labor union. I carried a ticket for six years in the International Brotherhood of Electrical Workers in my youth. I built power line transmission line all over Wyoming, Utah, Colorado. That’s how I paid for my education. So, I’m not anti-union.
I do think the legislation that the administration is supporting and that the unions are pushing hard, the so-called Card Check Law, would do away with a secret ballot in terms of the question of organizing unions. I think it would be a huge mistake. I don’t think we want to get into the business where we make it easier for there to be the kind of intimidation that we’ve sometimes seen in these operations in the past and where people wouldn’t be able to cast a secret ballot in terms of whether or not they want to join a union.
CAVUTO: Jack Welt (ph) said they be deliteriates (ph) to our economic recovery. Do you agree?
CHENEY: Well, I always felt that what Ronald Reagan did back in 1981in the early part of his administration when he was very tough with the air traffic controllers was a good, sound, solid move. I think that, as I say, people want to join a union, fine. That’s their business. There are provisions for that that allow unions to be represented.
But I think what the unions are trying to do here is dramatically expand the base in terms of membership and they will, in turn, generate vast sums of money in terms of dues and political contributions. And I think it does have wide- ranging ramifications and that the current system where we have secret ballots for people to decide whether or not want to be represented by unions is a good way to go. We ought to preserve it.
CAVUTO: You mentioned Ronald Regan, sir, and Jeb Bush made some news recently made some news recently saying that the party, and I’ll paraphrase here, obsesses a bit too much about Ronald Regan and have got to move on and move forward. What do make of that?
CHENEY: Well, I like Jeb. I think he’s a good man. I’d like to see him continue to say involved politically.
CAVUTO: For president?
CHENEY: I’d probably support him for president.
CAVUTO: Would you really?
CHENEY: He’s a good man.
CAVUTO: Over Mitt Romney?
CHENEY: I’m not - I’m not endorsing anybody today. I’m not...
CAVUTO: Any candidate you like?
CHENEY: I’m not in the business of endorsing anybody at this point, Neil. But I’m a big fan of Jeb’s.
I think, in terms of the Regan legacy, I think it’s important to the party. I think it was a period of time when we had an administration that understood that the engine that drives the American economy is the private sector. That one of the things that was most important from the standpoint of government was to get out of the way of the private sector and let small businesses grow and develop and create jobs and create wealth. You had to reduce the tax burden to the maximum percent possible. Exactly the opposite of the kind of policies we see coming out of the administration today when we’re experiencing a vast - a proposal for a vast increase in the power of the government over the private sector.
CAVUTO: Without, you know, any regard for party, it started with your administration, right? I mean, the bailout, the financial bailouts of the banks and looking to help the auto companies being in very dire economic moments, certainly, was started by you and President Bush.
CHENEY: Well...
CAVUTO: Do you regret any of that?
CHENEY: I disagreed with bailing out the automobile companies. I would have encouraged the process to go forward for a Chapter 11.
(CROSSTALK)
CAVUTO: What about the banks?
CHENEY: ...to go.
The banks were different. And the reason the banks are different is because they are part of the financial system that is the heart and soul of our economy. And the federal government has major responsibilities for the health of our financial institutions. You’ve got the Federal Reserve, the Treasury, the FDIC, SEC, et cetera. And when the markets began to seize up, when people couldn’t get credit any more, when the collapse, for example, of the subprime mortgage market and so forth, put at risk the basic fundamental health of our economy because it threatened that core of our financial system and there isn’t anybody other than the federal government that can fix it. And therefore, we felt that we had no choice. But it’s still...
(CROSSTALK)
CAVUTO: But it’s still in shaky shape, right? After all...
CHENEY: It’s still in shaky shape, but there are...
(CROSSTALK)
CAVUTO: ... bankruptcy like you recommended for the auto companies be applied to the banks...
CHENEY: Not for the banks.
CAVUTO: Really?
CHENEY: I really think that would have been a serious problem when you have...
CAVUTO: Now, what did you see, can you say now, what did everyone see that was going to be so horrific that ...
CHENEY: Well, when we have the secretary of the Treasury or the secretary of the Treasury and the chairman of the Federal Reserve come in and say we’ve got a major crisis on our hands and within 48 hours major financial institutions are going to go down in flames. Or that Fannie Mae and Freddie Mac that dominated the mortgage market out there were suddenly in trouble financially because of the collapse of the subprime mortgage...
CAVUTO: But you must have seen where that was going, right? What you do for one, all expecting then - it’s an expectations game, right?
CHENEY: Right. But again, I think you’ve got to, and we did, make a distinction about the financial sector, because it is different than the other parts of the economy. The other parts of the economy can’t function without a strong financial sector, without credit, without sound monetary policy and actions by the government and the Federal Reserve to establish and maintain the value of our currency. Trying
CAVUTO: But now we’ve got the president, the government dictating salaries at these institutions rescued - which, I guess, happens if you take taxpayer dollars - and dictating their very business, right?
CHENEY: Well, the thing I find objectionable is that people are taking what was done with respect to the financial sector and without discriminating, trying to do the same thing for a broader range of sectors. And think that’s a mistake.
CAVUTO: Do you think it went too far?
CHENEY: I think so. I would have kept it focused on the financial institutions. But I do - I worry that the current situation is a set of circumstances where the administration is using the excuse of the economic difficulties in order to significantly broaden the power and authority of the government over the private sector. I think that’s a huge mistake.
CAVUTO: In “The Wall Street Journal’s” story that has it that the president’s tax hikes actually go in to those earning $235,000, not $250,000. What do you think of that?
CHENEY: I haven’t seen the story, but I worry. I don’t see any way you can do what he’s trying to do in terms of the vast expansion of governmental programs and the huge federal deficit and major tax increases without the kind of tax increases that are going to hit virtually every American.
CAVUTO: Do you think it stops at 39.6 percent?
CHENEY: I’m afraid it won’t, not if you go with a government of the size and scale that the administration apparently envisions.
CAVUTO: What do you envision that we’ll ultimately get to?
CHENEY: Well, I’d much prefer a situation in which we did not embark upon a course of the vast expansion of the authority of the federal government over the private sector. I’d be much more focused on tax cuts and reducing the economic burden on the private sector that the federal government represents as the best way to get the economy up and running again. I think you need to create jobs, you need to support small business, you need to encourage people to go out and save and invest and create the kind of entrepreneurial activity that really has given us the greatness that is the American economy, not expand the size of the federal government.
CAVUTO: Finally, Mr. Vice President, many have urged the Republican Party to moderate, to get more mainstream, to do what Democrats did at the time that Bill Clinton in the late ‘80s into ‘92, become more palatable to a wider section of the population. What do you say?
CHENEY: I think we need to run a party that is broadly based, where people of a wide variety of viewpoints are welcome. I don’t think we ought to change the basic fundamental philosophy of the Republican Party. I personally am a conservative Republican. I obviously believe in my philosophy, and I think that’s the basis upon which we have to build any resurgence of our party. I think we will, but I think we’ll do it by being true to our principles, not becoming more like the Democrats.
CAVUTO: So, you don’t think you’d isolate the Republicans going your route?
CHENEY: No.
CAVUTO: Mr. Vice President, thank you very, very much.
Thursday, May 21, 2009 at 9:55 
Every year, the US Director of National Intelligence is required by law to submit to Congress a report on "the acquisition by foreign countries during the preceding 6 months of dual-use and other technology useful for the development or production of weapons of mass destruction (including nuclear weapons, chemical weapons, and biological weapons) and advanced conventional munitions".