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Here's another StrategyPage posting.
The Department of Defense never got the kind of intelligence services they expected, or needed, from the CIA, and have been gradually increasing their own intelligence capabilities. In Afghanistan and Iraq, military intelligence operators have been hiring thousands of local agents (as informants, spies, or armed mercenaries), and have a better idea of what’s going on at the ground level than the CIA does. The Pentagon does not want the CIA people to come in and screw up their agent networks.