Jan. 30 (Bloomberg) -- Ex-New York Times reporter Judith Miller, who spent 85 days in jail rather than reveal Lewis ``Scooter'' Libby as a confidential source, testified he told her in June 2003 that an Iraq war critic's wife was a CIA agent.

Miller, testifying for the prosecution today at Libby's perjury trial in Washington, said Libby told her on June 23, 2003, that war critic Joseph Wilson's wife worked for the CIA. At another meeting two weeks later, Libby said that Wilson's wife worked in the Central Intelligence Agency section that focused on weapons of mass destruction.

``He said that his wife, referring to Wilson, worked in the bureau,'' Miller said under questioning by prosecutor Patrick Fitzgerald. ``I quickly understood that he was referring to the CIA.'' Under cross-examination, she acknowledged that she forgot about the June 23 meeting the first time she testified before a grand jury in 2005.

Libby, 56, is accused of lying to investigators probing whether U.S. officials deliberately leaked CIA agent Valerie Plame's identity to retaliate against Wilson, her husband, for attacking the administration's Iraq war claims. Prosecutors say Libby told investigators he learned about Plame for the first time from NBC journalist Tim Russert on July 10, 2003.

Miller was held in contempt of court and went to jail in 2005 for refusing to disclose her source on Plame's identity. She was freed after agreeing to cooperate with Fitzgerald investigation of the leak. She said she decided to testify after Libby released her from a promise of confidentiality. She left the Times in November 2005.

`Agitated and Frustrated'

At her June 23 meeting with Libby, he seemed ``agitated and frustrated and angry,'' Miller said. He was concerned that the CIA was backpedaling on its pre-war reports on weapons of mass destruction in Iraq with a ``perverted war of leaks,'' Miller told the jury.

``He accused the CIA of leaking information that would seem to distance the agency from its prior estimates,'' she said.

At first, Libby referred to Wilson, a former ambassador, as ``a clandestine guy,'' though later in the meeting he referred to Wilson by name, she said.

In his January 2003 State of the Union message, during the months before the U.S. invaded Iraq, President George W. Bush said that Saddam Hussein tried to buy uranium in Africa for nuclear weapons.

Trip to Niger

Wilson said he found no such evidence during a 2002 trip to Niger, where he was sent by the CIA. On July 6, 2003, Wilson wrote in a New York Times column that the administration distorted intelligence to justify the Iraq invasion. Eight days later, syndicated columnist Robert Novak revealed that Wilson's wife was a CIA operative.

Miller said that during her second meeting with Libby, on July 8, 2003, he said there was plenty of information to support the notion that Iraq was seeking uranium in Africa, Miller said. She said the two discussed Plame a third time, later that week, when Miller told him on the telephone that she didn't plan to write an article about Plame.

Under cross-examination by Libby defense lawyer William Jeffress, Miller said that when she first testified to a grand jury the day after she got out of jail in 2005, she forgot that on June 23, 2003, she had talked with Libby about Wilson and his wife. She said she remembered it only after checking her notes.

``Didn't remember a thing about it?'' Jeffress said.

``Nothing about it,'' Miller responded.

Jeffress asked Miller whether she remembered it while she was in jail.

`Confidentiality'

``I thought about the need to protect the confidentiality of Mr. Libby until such a time as I got from him a personal and voluntary waiver,'' Miller said. ``I did not remember the meeting while I was in jail.''

In questioning Miller's memory, Jeffress read a portion of her grand jury testimony in which she said, ``I really have to rely on the notes because my memory is not good.''

She said her memory is ``largely note-driven'' and that she initially had been asked to review her notes starting in July 2003, not June.

Under questioning from Jeffress, Miller also said she had Wilson's name and phone number in her notebook before her June 23 meeting with Libby.

``I don't remember who I talked to about Joe Wilson,'' she said. Asked how many people she talked to about Wilson and Plame during June and July 2003, she said, ``I have a vague memory of discussing it with many people.''

Miller said she had no memory of hearing about Plame before her June meeting with Libby.

Up To 10 Years

Libby is charged with perjury, obstruction of justice and making false statements. He faces up to 10 years in prison if convicted of obstruction, the most serious charge. Libby resigned after he was indicted in October 2005.

It is a federal crime to knowingly reveal the identity of a covert CIA agent. No one has been charged with the leak.

Yesterday, ex-White House Press Secretary Ari Fleischer became the fifth former or current government official to testify that he discussed Plame with Libby before Libby's July 10 conversation with Russert. Fleischer said Libby told him on July 7 that Wilson's wife worked for the CIA in its counter- proliferation division and that the information was ``hush- hush.''

The trial is expected to last four to six weeks. The case is U.S. vs. Libby, 05-394, U.S. District Court, the District of Columbia.

To contact the reporter on this story: Laurie Asseo in Washington at lasseo1@bloomberg.net

Last Updated: January 30, 2007 17:59 EST