But if it’s genuine, Gates’s transformation comes at the right time-for the agency and for Gates. The CIA needs to be turned around, and Gates needs to convince the Senate intelligence committee that he’s the man to do it. The biggest threat to Gates’s confirmation was the charge that he had played a key role in the Iran-contra scandal. Last week the long-awaited testimony of Alan Fiers, a former top CIA official who is cooperating with the Iran-contra prosecutor, didn’t offer any evidence directly tying Gates to wrongdoing. As a result, the committee will likely approve Gates next week. But Fiers’s testimony, a gripping tale of deceit and intrigue, amply demonstrated why the agency needs strong -and honest-leadership.

Back in 1984, Fiers, at the time the head of the agency’s Central American task force, was well aware that a national-security aide to President Reagan-the now infamous Col. Oliver North-had established a secret arms pipeline to the contras. Fiers was also well aware that Congress had forbidden the agency from any role supplying military aid to the Nicaraguan rebels. So he testified he was “incredulous” when the following scene took place at CIA headquarters between himself, Director William Casey and Colonel North. “Ollie,” said Casey to North, “Alan tells me you’re operating in Central America. Is that true?” “No sir,” replied the Marine colonel. “Good,” said Casey, “I want you to understand that you’re not to operate in Central America. "

After the meeting, Fiers said, he spoke with his superior, Clair George, the CIA’s covert-operations spymaster. “Sometime in the dark of night, Bill Casey has said, ‘I’ll take care of Central America, just leave it to me’,” George told Fiers. “What you just saw going on there was a charade.” Fiers stared back. “Jesus Christ, Clair, if that’s true, this will be worse than Watergate if it ever comes out in the open.”

Fiers has pleaded guilty to withholding information on the scandal from Congress and George is under indictment. Gates, who was the CIA’s deputy director at the time, insists that Casey kept him in the dark about Iran-contra. But when the scandal was breaking, Gates showed a ruthlessness that could come in handy as he tries to retool the CIA in the years ahead. As Fiers testified last week, Gates was told in late 1986 that the CIA station chief in Costa Rica, Joseph Fernandez, wanted to get a lawyer and take the Fifth Amendment on his role in supplying the contras. “Well, if he does that,” declared Gates, “he’s fired.”