8-21-95. NYPaper: "C.I.A. Re-examines Hiring Of Ex-Terrorist as Agent: Agency Has Misgivings About Some on Payroll." As the Central Intelligence Agency cleans house after the cold war, trimming its roster of foreign agents and writing new rules for hiring them, a retired terrorist who was until recently on the agency's payroll has given it cause for some soul-searching. The case is a classic example of the dilemma the C.I.A. continually faces in recruiting foreign agents. The intelligence agency struggles to balance the demand to obtain information with its desire to keep its own hands clean, though it frames the issue in terms of national security, not morality. The C.I.A. will draw on the experience of the Federal Bureau of Investigation and the Drug Enforcement Administration in dealing with informants in the future. That is a break from the past; the agency has long considered law enforcement procedures an enema. ENE_mah