Central Intelligence Agency (CIA) Director Leon Panetta will replace Defense Secretary Robert

Central Intelligence Agency (CIA) Director Leon Panetta will replace Defense Secretary Robert Gates when he steps down this year, according to Walter Lohman, Asian Studies Center director of the top conservative think tank Heritage Foundation, based here, and another American source.

Lohman said Friday (Saturday in Manila ), “That’s what I’m hearing.” He replied he didn’t know about the precise timing, but added “it would be between August and end of this year.”

Another source with experience in one of America ‘s current two wars, said Thursday former US Congressman Panetta, who turns 73 in June, is the “frontrunner” to replace Gates at the Pentagon, citing two reasons.

“One, the Pentagon will need someone who is close to the President, and two, it will need someone who has good relations with Congress. Panetta, although a Pentagon outsider and an academician without military experience, fits the bill,” the source pointed out, adding even some in the Pentagon are warming up to the idea.

Facing budget cuts amid concern for the nation’s ballooning $13 trillion deficit, Pentagon needs a champion in both the White House and Congress.

Among the earliest to welcome speculations about Panetta was Norman Y. Mineta, the only Asian American to serve as cabinet secretary for two presidents from both parties. Mineta was commerce secretary under President Bill Clinton and transportation secretary under President George W. Bush.

Mineta said Panetta would make “an excellent choice” as defense secretary in an interview with this writer on January 20. “He knows about the budget and he has experience” in both the executive and legislative branches of the government, he said. He also noted Panetta’s integrity and dedication as a public servant.

Mineta and Panetta are good friends who hold each other in high esteem. Both are sons of immigrants with extensive record in public service.

Both represented California as members of the US Congress about the same period, with Mineta noting it caused confusion because of their similar-sounding names.

Panetta, son of Italian immigrants, served from 1977 to 1993, and at one point was chairman of the House of Representatives committee on budget.

Panetta served as Clinton ‘s White House chief of staff, and before that, as his director of the Office of Management and Budget. The wikipedia notes Panetta “is credited with developing the budget package that would eventually result in the balanced budget of 1998.”

A CIA spokesman denied news reports Panetta was interested in a job change, Reuters reported Thursday, which added the White House was considering other candidates such as Senator Jack Reed and former Pentagon Deputy Secretary John Hamre.

“Panetta is an academician and an outsider,” said another American source with a distinguished military background, in an interview with this writer Tuesday, shooting down the speculations.

But the same source noted the likely candidate could be an outsider, “maybe a deputy secretary from another (federal) department.” The source also said, “I would be very surprised if (Secretary of State) Hillary Clinton accepts it.”

Hillary’s name has been mentioned in previous news reports. But she replied with a simple “No” to the question from CNN a couple of weeks ago whether she was interested in the position.

This city was a-buzz Tuesday over the news item on Panetta going to Defense and Gen. David Petraeus, US commander of foreign forces in Afghanistan , taking over the CIA.

Reuters reported Thursday some in this US capital see a White House motive in the job changes, preventing the Republican Party from making Petraeus its presidential candidate in the 2012 elections, when President Barack Obama is up for reelection.

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