Covert Leeway Sought by Administration

The Reagan Administration on Wednesday attempted to head off stricter congressional notification requirements for covert operations.

State Department and CIA witnesses told a House panel the Democratic-sponsored legislation was an overreaction to President Reagan’s failure to notify Congress of secret U.S. arms sales to Iran.

That failure was an aberration, according to Michael H. Armacost, State Department undersecretary for political affairs, and David Doherty, general counsel for the CIA.

Took Another View

While the witnesses and Republican panel members argued for presidential flexibility in foreign policy, Democrats on the House Intelligence Committee’s legislation subcommittee took a different view.

They said a maximum delay of 48 hours should be established for the President to notify Congress--replacing the requirement of “timely” notification of covert actions.

Rep. Matthew F. McHugh (D-N.Y.), the panel chairman, said something is wrong with a system in which “merchants of arms knew about this but the Speaker of the House cannot be trusted.”

He referred to private middlemen who former National Security Council aide Lt. Col. Oliver L. North used as intermediaries in the arms sales to Iran.

‘Essential Policy Tool’

In arguing for retaining existing law, which also provides for consultation with lawmakers, Armacost said: “In attempting to fix a system that is not broken, Congress risks impairing the effectiveness of an essential policy tool.”

Both Administration witnesses emphasized changes Reagan made after the Iran- contra affair became public, especially a prohibition against the National Security Council staff undertaking covert actions.

Current law provides that in general the President should notify the two congressional intelligence committees before undertaking a covert operation he has authorized. There are two exceptions.

First, in extraordinary circumstances, the President may limit prior notice to a leadership group of eight members of the House and Senate. Second, in certain undefined cases, he may skip prior notice, but must provide the intelligence panels notice in a “timely fashion” along with an explanation of the delay.

10 Months Delay

In the case of the Iran weapons shipments, the initiative was under way for 10 months after Reagan secretly signed an authorization, called a finding, before Congress learned of it through a story in a Middle East publication.

Two proposed bills would change the procedure. One would require prior notice of all covert operations without exception. The other would allow a deferred notice under extraordinary circumstances--but limit the delay to 48 hours after the covert action had begun.