Pentagon and Bogus News: All Is Denied:
"Early last year Defense Secretary Donald H. Rumsfeld disbanded the Pentagon's Office of Strategic Influence after it became known that the office was considering plans to provide false news items to unwitting foreign journalists to influence policymakers and public sentiment abroad.

But a couple of months ago, the Pentagon quietly awarded a $300,000 contract to SAIC, a major defense consultant, to study how the Defense Department could design an 'effective strategic influence' campaign to combat global terror, according to an internal Pentagon document. "

Sound familiar?

Senior Pentagon officials said Thursday that they were caught unawares by the contract and insisted its language was a "poor choice of words" by a low-level staffer. They said the work did not reflect any backdoor effort to resurrect the discredited office and was merely a study to understand Al Qaeda better and find ways to combat it.

"We are not recreating that office," said Thomas O'Connell, the assistant secretary of defense for special operations and low-intensity conflict, the policy arm of the Pentagon that deals with the military's most secretive operators and whose staff wrote the document.

But some critics of the former office voiced skepticism, saying that the contract amounted to a veiled attempt to create a low-budget copy of its ill-fated predecessor. A spokesman for SAIC referred all questions to the Pentagon.…

http://www.nytimes.com/2003/12/05/politics/05STRA.html