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* Satellite photos were displayed showing site

* Base had tracked proliferation of looted weaponry

* Intelligence agencies dragged into political fray

By Mark Hosenball

WASHINGTON, Oct 12 (Reuters) – U.S. intelligence efforts in

Libya have suffered a significant setback due to the abandonment

and exposure of a facility in Benghazi, Libya identified by a

newspaper as a “CIA base” following a congressional hearing this

week, according to U.S. government sources.

The intelligence post, located 1.2 miles (2 km) from the

U.S. mission that was targeted by militants in a Sept. 11

attack, was evacuated of Americans after the assault that killed

Ambassador Christopher Stevens. Three other Americans died in

the attacks on U.S.-occupied buildings, including two who were

hit in a mortar blast at the secret compound.

The publication of satellite photos showing the site’s

location and layout have made it difficult, if not impossible,

for intelligence agencies to reoccupy the site, according to

government sources, speaking on condition of anonymity.

The post had been a base for, among other things, collecting

information on the proliferation of weaponry looted from Libyan

government arsenals, including surface-to-air missiles, the

sources said. Its security features, including some

fortifications, sensors and cameras, were more advanced than

those at rented villa where Stevens died, they said.

The sources said intelligence agencies will find other ways

to collect information in Libya in the aftermath of last year’s

toppling of long-time leader Muammar Gaddafi.

“Benghazi played a critical role in the emergence of the new

Libya and will continue to do so. It makes sense that we would

return there to continue to build relationships,” one U.S.

official said.

Public discussion of the top-secret location began with a

contentious Wednesday hearing of the House of Representatives

Committee on Oversight and Government Reform, which was

investigating whether security lapses put Americans at risk.

The State Department displayed a satellite photograph

showing two locations – the rented villa that served as a

special diplomatic mission and the compound that officials had

cryptically described as an “annex” or “safe house” for

diplomatic personnel.

Both compounds were attacked by militants believed to be

tied to al Qaeda. After the diplomatic complex was overrun, U.S.

and Libyan personnel rushed by car to the second site, where

they fought off two more waves of assaults, officials said.

Charlene Lamb, a top official in the State Department’s

Bureau of Diplomatic Security, told lawmakers that the secret

compound took “as many as three direct hits.”

Two U.S. security officials, Glen Doherty and Tyrone Woods,

were killed there in what U.S. officials described as an unlucky

mortar strike. As many as 37 people eventually escaped to

Benghazi’s airport.

When the satellite photo was displayed, a senior committee

Republican, Representative Jason Chaffetz, complained that the

discussion was drifting into “classified issues that deal with

sources and methods,” and the photo was removed from public

display. No one at the hearing used the term “CIA base” to

describe the facility.

‘BONEHEADED QUESTIONING’

The next morning, Dana Milbank, a Washington Post columnist,

wrote that the committee’s “boneheaded questioning” of State

Department witnesses left little doubt that the compound in the

pictures was a “CIA base.”

The Center for American Progress, a Washington think tank

with ties to the Obama White House, followed up with a blog post

accusing Republicans of revealing the “Location Of Secret CIA

Base.”

On Friday, Representative Dutch Ruppersberger, top Democrat

on the House Intelligence Committee, accused Republicans of

mishandling secret information.

Spokespeople for the State Department and White House had no

comment. The CIA also had no comment.

Oversight committee spokesman Frederick Hill said committee

Democrats made matters worse by asking questions about the

satellite photos. “Even after Republicans objected, Democrats

continued to ask questions that led State officials to put even

more sensitive information about who worked there into the

public realm,” Hill said.

The dispute over who was responsible for identifying the

base is the latest case in which intelligence agencies –

particularly the CIA – have been dragged into a political fray

over the Benghazi attack.

The Obama administration’s handling of the Benghazi attacks

has become fodder for criticism from Republican presidential

candidate Mitt Romney and running mate Paul Ryan ahead of the

Nov. 6 election.

Intelligence officials are not happy at being drawn into the

political battle. Paul Pillar, one of the CIA’s former most

senior analysts, said the agency is sure to be dismayed at how

its sensitive work has been dragged into the debate.

“They’re trying to do the best they can with fragmentary and

incomplete information. No doubt they are very unhappy that this

issue is now being exploited for political purposes,” Pillar

said.