NSA Collected Phone Records in U.S., Lott Says (Update2)

May 11 (Bloomberg) -- The U.S. National Security Agency has obtained the phone records of millions of Americans in an effort to stop terrorists, a Senate Intelligence Committee member confirmed.

News of the program, first reported by USA Today, sparked demands by lawmakers that executives from AT&T Inc., BellSouth Corp. and Verizon Communications Inc. testify before Congress. The disclosure also might make it more difficult for the former NSA chief, Air Force General Michael Hayden, to win confirmation to head the Central Intelligence Agency.

Senator Trent Lott, a Mississippi Republican, told reporters he was briefed on the program and said the U.S. needs ``to use modern technological tools'' to defeat terrorists. President George W. Bush, while not confirming or denying the effort, defended his administration's spying and said the government isn't ``trolling through the personal lives of millions of innocent Americans.''

USA Today, citing anonymous sources with direct knowledge of the arrangement, reported today that the phone companies turned the records over to the NSA. The spy agency has compiled a massive database with the information, the newspaper reported.

Lott said the story ``undermines'' the program, which he called ``legitimate and legal.''

Senator Pat Roberts, chairman of the Senate Select Committee on Intelligence, said in a statement that he is ``increasingly frustrated with the release of sensitive data regarding our nation's best defenses in the war on terror.''

`Fully Informed'

The Kansas Republican added that a bipartisan group of lawmakers on an intelligence subcommittee ``have been fully informed of all aspects of the NSA's activities.''

Bush, making a hastily scheduled appearance at the White House, said the government is ``fiercely'' protecting the privacy of ordinary citizens. The NSA's work is part of efforts to prevent another terrorist attack, he said.

Hayden, speaking to reporters after meeting with Senator Mitch McConnell of Kentucky, the No. 2 Republican, said that ``everything that NSA does is lawful and very carefully done.''

Senator Arlen Specter, the chairman of the Senate Judiciary Committee, said he would hold hearings on the secret program.

``I am determined to get to the bottom of this,'' said Specter, a Pennsylvania Republican, who added that he would subpoena the telephone companies if they decline to appear before his committee voluntarily.

`Growing Impediment'

Some lawmakers said they also want to get answers from Hayden, who headed the spy agency from 1999 to 2005. Senator Dianne Feinstein, a California Democrat who had spoken positively about him, said the issue presents ``a growing impediment to the confirmation.''

Hayden, nominated for the CIA post this week by Bush, already was facing scrutiny for his role in creating another surveillance program that involves wiretapping of domestic phone calls and e-mails without a court warrant. That effort, which the administration dubbed the Terrorist Surveillance Program, targets communications by members of al-Qaeda or other groups when one of the parties is overseas.

Specter said the new report ``does not raise concern in my mind about General Hayden, but I think it underscores the need for judicial review'' of the NSA's domestic eavesdropping.

In the House of Representatives, Majority Leader John Boehner said he is ``concerned'' about the program disclosed today ``because I'm not sure why it would be necessary to keep and have that kind of information.''

`Lot More Explaining'

Boehner, a Republican from Ohio, said Hayden ``will have a lot more explaining to do.''

Some Republican senators defended the program described in the newspaper report.

``They are not tapping our phones or getting our conversations,'' said Senator Jeff Sessions of Alabama.

The White House canceled Hayden's planned meeting today with Senator Rick Santorum, a Pennsylvania Republican. The senator wasn't given a reason for the cancellation, said Santorum's spokesman, Robert Traynham.

Spokesmen for the telephone companies declined to comment on the USA Today story, as did the NSA.

NSA spokesman Don Weber said, ``Given the nature of the work we do, it would be irresponsible to comment on actual or alleged operational issues.'' The agency ``operates within the law'' and takes its legal responsibilities seriously, he added.

``We act in full compliance with the law, and we are committed to safeguarding our customers' privacy,'' said Verizon spokesman Robert Varettoni.

AT&T and BellSouth

AT&T spokesman Michael Coe, in an e-mailed statement, said, ``We only assist law enforcement and government agencies charged with protecting national security in strict accordance with the law.''

BellSouth spokesman Jeff Battcher said the company ``has not provided any confidential customer information to the NSA or any governmental agency without proper legal authority.''

USA Today said the NSA began collecting the records, which identify the phone numbers people call but not their names, addresses or other personal information, shortly after the Sept. 11, 2001, terrorist attacks. Contents of calls aren't collected.

The NSA used the records for a computer analysis that looks for patterns that could show terrorist plotting, the paper reported. The program looks at details like how long calls last, where they originate, who the recipients are and when they take place.

Qwest

Of the major telephone companies, only Qwest Communications International Inc., refused to comply with the government's request to turn over the information, USA Today said. The government said it was willing to pay for the records, the newspaper reported.

Robert Toevs, a spokesman for Denver-based Qwest, declined to comment.

When the program began, AT&T, whose chief executive officer was C. Michael Armstrong, agreed to provide the information, as did BellSouth, run by Duane Ackerman, and Verizon, headed by Ivan Seidenberg. SBC Communications Inc., whose CEO was Edward Whitacre, also complied with the request, USA Today said.

SBC has acquired AT&T and taken its name. Whitacre is the CEO of the company, which also has agreed to buy BellSouth.

To contact the reporters on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net; Nicholas Johnston in Washington at njohnston3@bloomberg.net

To contact the editor responsible for this story: Ken Fireman at kfireman1@bloomberg.net.