TRANSCRIPT (part 2):
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Scheuer wanted to level the entire camp. "The world is lousy with Arab princes," says Scheuer. "And if we could have got Osama bin Laden, and saved at some point down the road 3,000 American lives, a few less Arab princes would have been OK in my book."
"You couldn't have done this without killing an Arab prince," asks Kroft.
"Probably not. Sister Virginia used to say, 'You'll be known by the company you keep.' That if those princes were out there eating goat with Osama bin Laden, then maybe they were there for nefarious reasons. But nonetheless, they would have been the price of battle."
And that doesn't bother him? "Not a lick," says Scheuer.
"My understanding is you had a reputation within the CIA as being fairly obsessive about this subject," says Kroft. "I dislike obsessive," says Scheuer. "I think hard-headed about it."
Whatever you call it, in 1999, three years after he started the bin Laden unit, Scheuer's candor got him into trouble with his supervisors at the CIA. What were the circumstances under which he left the bin Laden unit?
"I think I became too insistent that we were not pursuing this target with enough vigor and with enough risk-taking - - an unwillingness to take risks," says Scheuer. "I got relieved of the position I was in. I had a lovely sojourn in the library and then had other sojourns since."
His exile ended shortly after the attacks of Sept. 11, when he was brought back to the bin Laden unit as a special adviser. But by then, everything had changed.
His nemesis had gone underground, and the United States was on its way to invading Afghanistan and Iraq - creating, Scheuer says, the perception in the minds of 1.3 billion Muslims that America had gone to war against Islam.
"The war in Iraq - if Osama was a Christian - it's the Christmas present he never would have expected," says Scheuer.Right or wrong, he says Muslims are beginning to view the United States as a colonial power with Israel as its surrogate, and with a military presence in three of the holiest places in Islam: the Arabian peninsula, Iraq, and Jerusalem. And he says it is time to review and debate American policy in the region, even our relationship with Israel.
"No one wants to abandon the Israelis. But I think the perception is, and I think it's probably an accurate perception, that the tail is leading the dog - that we are giving the Israelis carte blanche ability to exercise whatever they want to do in their area," says Scheuer. "And if that's what the American people want, then that's what the policy should be, of course. But the idea that anything in the United States is too sensitive to discuss or too dangerous to discuss is really, I think, absurd."
Is he talking about appeasement?
"I'm not talking about appeasement. There's no way out of this war at the moment," says Scheuer. "It's not a choice between war and peace. It's a choice between war and endless war. It's not appeasement. I think it's better even to call it American self-interest."
Scheuer believes that al Qaeda is no longer just a terrorist organization that can be defeated by killing or capturing its leaders. Now, he says it's a global insurgency that's spreading revolutionary fervor throughout the Muslim world.
"Bin Laden's still at large. His most recent speech, I think, demonstrates that he's not running rock to rock, cave to cave. We are tangled in a very significant Islamic insurgency in Iraq," says Scheuer.
"Most dramatically, and perhaps least noticed, is the violence inside Saudi Arabia itself. Saudi Arabia was, until just a few years ago, probably one of the most safe countries on earth. And now the paper is daily full of activities and shootouts between Islamists who supported Osama bin Laden and the government there."
But if bin Laden is much stronger than he was, why haven't there been more attacks on the United States?
"One of the great intellectual failures of the American intelligence community, and especially the counterterrorism community, is to assume if someone hasn't attacked us, it's because he can't or because we've defeated him," says Scheuer. "Bin Laden has consistently shown himself to be immune to outside pressure. When he wants to do something, he does it on his own schedule."
"You've written no one should be surprised when Osama bin Laden and al Qaeda detonate a weapon of mass destruction in the United States," says Kroft. "You believe that's going to happen?"
"I don't believe in inevitability. But I think it's pretty close to being inevitable," says Scheuer.
A nuclear weapon? "A nuclear weapon of some dimension, whether it's actually a nuclear weapon, or a dirty bomb, or some kind of radiological device," says Scheuer. "Yes, I think it's probably a near thing."
What evidence is there that bin Laden's actually working to do this? "He's told us it. Bin Laden is remarkably eager for Americans to know why he doesn't like us, what he intends to do about it and then following up and doing something about it in terms of military actions," says Scheuer. "He's told us that, 'We are going to acquire a weapon of mass destruction, and if we acquire it, we will use it.'" After Sept. 11, Scheuer says bin Laden was criticized by Muslim clerics for launching such a serious attack without sufficient warning. That has now been given. And he says bin Laden has even obtained a fatwa, or Islamic decree, justifying a nuclear attack against the United States on religious grounds.
"He secured from a Saudi sheik named Hamid bin Fahd a rather long treatise on the possibility of using nuclear weapons against the Americans. Specifically, nuclear weapons," says Scheuer. "And the treatise found that he was perfectly within his rights to use them. Muslims argue that the United States is responsible for millions of dead Muslims around the world, so reciprocity would mean you could kill millions of Americans."
Scheuer says the fatwa was issued in May 2003, "and that's another thing that doesn't come to the attention of the American people."
Despite this threat, Scheuer insists the CIA doesn't have nearly enough trained analysts working on the Osama bin Laden unit today. At a time when Congress is considering revolutionary changes in the way the intelligence community is organized, Scheuer sees no major problems with the CIA or the product it produces.
He blames Sept. 11 on poor leadership from people like former CIA Director George Tenet, his chief deputy, Jim Pavitt, and former White House counterterrorism czar Richard Clarke, who were invited, but declined, to appear on Sunday's 60 Minutes.
"Richard Clarke has said that you're really sort of a hothead, a middle manager who really didn't go to any of the cabinet meetings in which important things were discussed, and that basically you were just uninformed," says Kroft.
"I certainly agree with the fact that I didn't go to the cabinet meetings. But I'm certainly also aware that I'm much better informed than Mr. Clarke ever was about the nature of the intelligence that was available again Osama bin Laden and which was consistently denigrated by himself and Mr. Tenet," says Scheuer.
"I think Mr. Clarke had a tendency to interfere too much with the activities of the CIA, and our leadership at the senior level let him interfere too much," says Scheuer. "So criticism from him I kind of wear as a badge of honor."
Is there anything about bin Laden that Americans don't know, but should? "Yeah, I think there is. I think our leaders over the last decade have done the American people a disservice in continuing to characterize Osama bin Laden as a thug, as a gangster, as a degenerate personality, as some kind of abhorrent individual," says Scheuer.
"He surely does reprehensible activities, and we should surely take care of that by killing him as soon as we can. But he's not an irrational man. He's a very worthy enemy. He's an enemy to worry about."
"You wrote in your book that he's a great man," says Kroft.
"Yes, certainly a man, without the connotation good or bad, he's a great man in the sense that he's influenced the course of history," says Scheuer.
Does he respect bin Laden? "Until we respect him, we are going to die in numbers that are probably unnecessary," says Scheuer