Friday, November 12, 2010

Shcherbakov's Defection


Medvedev Says He Knew about Double Agent

By Anna Smolchenko (AFP)

SEOUL — President Dmitry Medvedev confirmed Friday that a Moscow double agent helped Washington crack a major Russian spy ring that sparked the worst espionage row between the two countries since the Cold War.

Medvedev conceded that Russia would have to draw lessons from the fiasco but dismissed talk that it was time to start firing officials over the case -- an increasingly popular sentiment in disgruntled Moscow.

"To me, what Kommersant said was not news. I knew about it the day it happened, with all its attributes and accessories," Medvedev said at the G20 summit in South Korea's capital when asked about the respected daily's report.

Kommersant identified Washington's Russian accomplice as a colonel with the Russian foreign intelligence service named Shcherbakov, whose job was to plant civilian moles in the United States similar to the deep cover spy ring dismantled by Washington.

The paper also wrote that a Russian hit squad had been especially assigned to hunt down Shcherbakov in retribution and to prevent him from passing any other sensitive information to Washington.

"You can already have no doubt that a Mercader has already been sent after him," an intelligence source told the paper in reference to Ramon Mercader, the man sent by Stalin to Mexico to assassinate his rival Leon Trotsky.

Mercader used an ice pick for the job.

This summer's scandal culminated in 10 spies -- many working for years undercover in the United States as sleeper agents -- returning to Russia in exchange for four convicted US spies.

Medvedev did not confirm specific elements of the Kommersant story. But his comments suggested that he knew about the double agent before the June arrests and prior to his summit talks that month with his US counterpart Barack Obama.

But he firmly brushed aside suggestions that he should sack the head of his country's foreign intelligence service, Mikhail Fradkov, who has been the subject of growing dismissal talk.

His sacking was backed heavily Thursday by some opposition lawmakers and discussed widely both on television and in the popular press.

"I would not like to comment on the investigation," Medvedev said. "There has to be an investigation and we will draw our conclusions then."

Medvedev's comments echoed a similar statement from Prime Minister Vladimir Putin, who suggested in the aftermath of the crisis that Russia knew about the double agent all along.

"This was the result of treason and traitors always end badly. They finish up as drunks, addicts, on the street," Putin said at the end of July.

Putin then enigmatically added that "recently one (traitor) for instance ended his existence abroad and it was not clear what the point of it all was."

But some Russian media and lawmakers suggested that the Kremlin was simply trying to put a brave face on a bad situation and that Shcherbakov had done long-term damage to Moscow's espionage programme.

"The damage committed by the colonel to the state is too enormous" not to have further repercussions, said parliament's security council deputy chairman Gennady Gudkov.

The double agent's naming forced Medvedev to return to a sensitive issue for Russia just as the country attempts to play a more forceful role in foreign affairs.

Medvedev came to the G20 summit promoting a makeover of the global economic order designed to win Russia respect and keep major economies such as the United States in check.

But Russian officials found themselves talking about the Cold War, with Foreign Minister Sergei Lavrov particularly stressing that it was time to move on from the issues of the past.

Lavrov said he would be heading to Russia-NATO talks in Lisbon next week expecting to register the "conclusion of the post-Cold War era."

See: http://www.google.com/hostednews/afp/article/ALeqM5iokhy5fQsMxUxOIv2_s_iVq6VSWQ?docId=CNG.4e6b770ae2ca3b8f8eb41fd7adc33980.241

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Tuesday, November 9, 2010

Nicholson & Son Espionage Services, Inc.


CIA Officer Pleads to Spying for Kremlin
Son also has been convicted of receiving data for Russians

by Jerry Seper Washington Times 8 Nov 10

A former high-ranking CIA employee now serving a 23-year sentence for conspiracy to commit espionage pleaded guilty Monday in federal court in Portland, Ore., to new charges of conspiring to act as an agent of Russia and international money laundering, the Justice Department said.

Harold J. Nicholson, 59, pleaded guilty before U.S. District Judge Anna J. Brown, admitting that during the course of the conspiracy he met with his son, Nathaniel, on several occasions at the federal prison in Sheridan, Ore., where he provided information intended for Russia.

David Kris, assistant attorney general for national security, said Nicholson admitted that it was part of the conspiracy that his son would travel to several locations including San Francisco, Mexico City, Lima, Peru, and Nicosia, Cyprus, to meet with Kremlin agents.

At those meetings, Mr. Kris said, Nathaniel Nicholson provided the Russians with information they had requested from his father and collected money for his father's past espionage activities. The father admitted sneaking notes to his son on crumpled napkins during prison visits, which later were passed on to Russian agents.

Mr. Kris also said Harold Nicholson counseled his son on how to covertly travel with the Russians' funds and provide them to family members. The father was convicted of selling U.S. intelligence to Russia for $180,000 and was sentenced to prison in 1997.

"Harold Nicholson, one of the highest-ranking CIA officials ever convicted of espionage, dispatched his son around the globe to collect on past espionage debts from Russian agents," Mr. Kris said. "Today, he admitted using this scheme to continue to profit from his spying activities while in prison. The many agents, analysts and prosecutors who worked on this matter deserve our thanks."

Nathaniel Nicholson, 26, was arrested after traveling to Russia to negotiate a pension for his father and to learn whether any espionage funds were held in escrow. The son, who was paid $45,000 for meeting with the Russians, pleaded guilty last year to conspiracy charges and agreed to testify against his imprisoned father, if necessary, in a plea deal that could help him avoid jail time.

Harold Nicholson, who joined the CIA in 1980 after service as an Army captain, is serving a 283-month sentence at the Federal Correctional Institution (FCI) in Sheridan, Ore., for a 1997 conviction of conspiracy to commit espionage. At a plea hearing, he admitted that from 2006 to 2008, with the aid of his son, he acted on behalf of the Russian Federation, passed information to the Kremlin, and received cash proceeds for his past espionage activities.

He had faced up to 30 additional years in prison and fines totaling $750,000. A plea agreement in the case states that both parties will ask the court at sentencing to impose an eight-year prison sentence to be served consecutively to the sentence he is currently serving. Judge Brown has scheduled sentencing on Jan. 18.

The guilty plea came on the same day his trial was scheduled to begin.

"Mr. Nicholson hopes that his resolution of these charges will allow his children to move on with their lives, and he appreciates their ongoing love and support," his lawyer, Samuel Kauffman, said in a statement.

Dwight C. Holton, U.S. attorney in Portland, said the elder Nicholson "admitted not only betraying his country — again — but also betraying his family by involving his son Nathaniel in his corrupt scheme to get more money for his past espionage activities."

Arthur Balizan, special agent in charge of the FBI field office in Portland, said the elder Nicholson took an oath when he was hired at the CIA to protect the nation's security, but he violated that oath.

Nicholson served as a deputy chief of station for the U.S. Embassy to the Philippines and a chief of station to the U.S. Embassy to Romania. He also was assigned as an instructor at Camp Peary, a training facility for new CIA agents in Williamsburg, Va.

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Monday, November 8, 2010

For Once, Security Trumps (Chinese) $$$


Security Fears Kill Chinese Bid in U.S.

By JOANN S. LUBLIN and SHAYNDI RAICE
Sprint Nextel Corp. is excluding Chinese telecommunications-equipment makers Huawei Technologies Ltd. and ZTE Corp. from a contract worth billions of dollars largely because of national security concerns in Washington, according to people familiar with the matter.

The Defense Department and some U.S. lawmakers have been increasingly concerned about the two companies' ties to the Chinese government and military, and the security implications of letting their equipment into critical U.S. infrastructure.

Some officials argue China's military could use Huawei or ZTE equipment to disrupt or intercept American communications.

The Obama administration has also weighed in on the matter. Commerce Secretary Gary Locke called Sprint Chief Executive Dan Hesse this week to discuss concerns about awarding the work to a Chinese firm, but didn't ask Sprint to exclude the Chinese suppliers, according to an administration official familiar with the conversation. Mr. Hesse declined to comment.


Read more: http://online.wsj.com/article/SB10001424052748704353504575596611547810220.html?KEYWORDS=sprint#dummy#ixzz14iTo8bZx

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Thursday, November 4, 2010

CIA Control of SF?




Growing Support for CIA Control of Special Forces: Report
(AFP) – 3 days ago

WASHINGTON — Support is growing in the US military and administration of President Barack Obama for shifting to the CIA operational control over elite special forces teams secretly in Yemen, The Wall Street Journal reported Monday.

Citing unnamed officials, the newspaper said the foiled mail bombing plot by suspected Al-Qaeda militants in Yemen has added urgency to an administration review of expanded military options.

Officials said such a shift would allow the United States to strike suspected militant targets unilaterally with greater stealth and speed, the report said.

Allowing US Special Operations Command units to operate under the Central Intelligence Agency would also give the United States greater leeway to strike without the explicit blessing of the Yemeni government, the paper said.

In addition to streamlining the launching of strikes, it would allow the Yemeni government deniability because the CIA operations would be covert, The Journal said.

The White House is already considering adding armed CIA drones to the arsenal against militants in Yemen, the paper said.
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Sarkozy Accused of Using Security Service to Spy on Journalists

Magazine editor claims President oversees 'dirty-tricks unit' to investigate reporters

By John Lichfield in Paris


Thursday, 4 November 201
President Nicolas Sarkozy personally supervises a team of security agents which spies on troublesome French journalists, it was claimed yesterday.


The claim – dismissed by the Elysée Palace as "utterly ridiculous" – follows a high-profile law suit brought in September by France's most prestigious newspaper and a series of burglaries in recent weeks at the homes or offices of investigative reporters.

According to the satirical weekly Le Canard Enchaîné, President Sarkozy regularly orders the boss of France's internal security service to investigate and uncover the sources of any journalist who writes stories which embarrass the government.

A team of agents within the Division Centrale du Renseignement Intérieur (DCRI) – the French equivalent of MI5 and Special Branch – has been created to lead the investigations, the newspaper said.

Le Canard said that "since the start of the year" the President had "personally" intervened on several occasions with the head of the DCRI, Bernard Squarcini, a Sarkozy appointment and loyalist. Whenever the President saw an investigative article which "embarrassed him or his friends", he ordered the journalist to be placed "under surveillance", the newspaper said.

The Elysée Palace dismissed the claims as "utterly ridiculous". The leader of Mr Sarkozy's centre-right party, Xavier Bertrand, accused the newspaper of publishing a "great absurdity". The DCRI said that Mr Sarkozy had never given direct orders to Mr Squarcini on any subject.

However, sources within the DCRI confirmed to Le Monde that an "anti-leak" team did exist within the counter-intelligence agency to "protect national security". An opposition politician compared the "shameful" allegations to the Watergate affair in the US in the 1970s. Aurélie Filippetti of the Socialist Party accused President Sarkozy of being the "spiritual son of Richard Nixon".

Unusually for Canard, the article making the claims against the President was signed by the newspaper's editor, Claude Angeli. He told French radio yesterday that the story was based on information from within the DCRI. "We would not have written such a hard headline unless our sources were solid," he said. The article was headlined: "Sarko supervises spying on journalists."

The allegations follow the dramatic decision in September by Le Monde to bring a criminal action against "persons unknown" for the alleged illegal use of the counter-intelligence service to muzzle the press.

France's most respected newspaper said that officials in Mr Sarkozy's office had deployed the DCRI like a "cabinet noir", or dirty-tricks operation, to uncover the source of leaks in the L'Oréal family feud and political financing scandal.

A legal case is proceeding against "X" or person unknown but the French government has refused to release sensitive documents to the Paris public prosecutor for "reasons of state security".

The DCRI admits that it searched mobile phone records to track down a senior figure in the Justice Minister's office as the source of embarrassing leaks to Le Monde in July in the so-called "Bettencourt-Woerth" affair. Although the agency claimed to have done so legally, it later emerged that it had not sought the permission of the state's surveillance watchdog. Although the Bettencourt affair began as a family feud between France's wealthiest woman, Liliane Bettencourt, and her daughter, it exploded last summer into a state scandal.

Mr Sarkozy's Budget Minister, and former campaign treasurer, Eric Woerth, was accused of soliciting illegal political donations – and a job for his wife – from Ms Bettencourt's personal fund manager.

In the last few weeks, there has been a series of unexplained burglaries, and the theft of computers and other equipment, from the homes or offices of journalists who wrote investigative articles on the Bettencourt affair.

A laptop computer and a global positioning system was stolen from the home of Gérard Davet of Le Monde. A computer belonging to Hervé Gattegno was stolen from the offices of the centre-right news magazine, Le Point. Two computers and tapes were stolen from the offices of left-wing investigative website, Mediapart, which has led the way in uncovering the political aspects of the Bettencourt affair.

Asked about these crimes at his press conference after the EU summit in Brussels last week, President Sarkozy hesitated and said: "I don't see what they have to do with me."

As Canard pointed out yesterday, it was unusual for Mr Sarkozy to miss an opportunity to condemn a crime.

Marie-Pierre de la Gontrie, the secretary general for public liberties in the main opposition party, the Parti Socialiste, said yesterday: "The revelations in Canard Enchaîné are extremely serious. There must be an official investigation and the boss of the DCRI, Bernard Squarcini, must appear before the legal committee of the National Assembly."

Sarkozy's media battles

* France's most prestigious newspaper, Le Monde, accused Mr Sarkozy in September of illegally using the counter-intelligence service to muzzle the press. The newspaper said it had started legal action against 'persons unknown' at the Élysée Palace for breaking a century-old French law guaranteeing the secrecy of journalistic sources. The Élysée Palace flatly denied the accusation.* President Sarkozy ordered the merger of two competing intelligence agencies two years ago. He said the change was necessary on efficiency grounds and would create a French FBI. However, it was claimed that he suspected that one or both of the agencies had played a part in a dirty tricks campaign that had led to leaks about his failing marriage to Cécilia Attias.
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Wednesday, November 3, 2010

Shin Bet Counter-Terror Strategy Outline


Head of Israel's 'Shin Bet' Outlines Israel's Joint Countering Terror Strategy

The first decade of the 21st century demonstrated the potential risk of modern terror, and how determined response, led by dedicated personnel, backed by technological and a legal infrastructure, can defeat terror attacks.

Facing terror for over 60 years, Israel has developed the methods, means and procedures, to effectively combat this dangerous phenomena. During the 1970s most attacks were directed at Israeli-related aviation – airlines flying to and from the country. Palestinian terror activities gradually escalated, through domestic and cross-border attacks, through popular uprisals in the occupied territories, in the 1980s and a guerilla-like campaign in South Lebanon, waged through the 1990s.

Yet the terror campaign against Israel culminated in the early 2000s, as Palestinian Tanzim, Islamic Jihad and Hamas organizations launched a massive onslaught, employing a new type of weapon - suicide attacks - directed primarily against Israel's civilian population. This weapon was the most effective the terrorist organizations possessed - less than one percent of the activists were responsible to more than half of the casualties caused to the other side.

Israel's security services required time to adjust and develop new and effective countermeasures to combat the new threat of suicide bombers. The results were remarkable: Compared to 452 suicide attacks carried out by the Palestinians in 2003, only two suicide attacks occurred since 2007. (see also: "Suicide Bombers as Weapons")

According to Yuval Diskin, Director, Israel Security Agency (ISA – Shin Bet), the winning formula developed by Israel's security services is based on jointness - the ability of all services to work together, sharing operational concepts (CONOPS), with a clear definition of the combined objective for all the organizations engaged in homeland security and defense. Multidisciplinary intelligence activity, based on advanced technological and human intelligence, tailored and channeled through processing and dissemination, means to turn intelligence from raw data into an operationally valuable, real-time asset. "Operational systems must be adapted and learn to operate as efficiently as possible with such real-time intelligence assets" said Diskin.

Such adaptation is enabled by introducing technological means to improve connectivity, interoperability and joint operations by combined task forces, composed of elements from different organizations, such as ISA, National Police, Army and Air Force. Under such a cooperation umbrella, different organizations must share common counter-terror techniques, tactics and procedures (TTP), optimizing for rapid response, based on real-time intelligence. According to Diskin, the main advantage of the joint-operating concept is by combining the unique capabilities and characteristics of each of the participating organizations. "The main challenge is not integrating the technologies, but overcoming leadership and human nature obstacles" Diskin added.

One of the keys to establishing jointness was the setup of inter-service command posts, manned by representatives from all the services and organizations involved in operations.

Interoperability also requires maintaining real-time common operational pictures among all organizations - a task achieved by implementing common communications interfaces among all organizations, enabling real-time information flow between command centers. These preparations paid dividends in recent years, as Israel's security services managed to repel multiple Palestinian terror attacks, intercepting suicide bombers before they could reach their targets.

Diskin considers the legal infrastructure a critical element in the success of Israel's counter-terror campaign. "It took Israeli lawmakers 14 years to agree on the legal framework for the ISA, until the so-called 'ISA Law' was completed in 2002. Once implemented, this legal foundation became instrumental for the success of Israel's counter-terror campaign." Said Diskin.

The absence of terror strikes does not indicate that Israel's security organizations are remaining idle. On the contrary, during this period the Palestinians in the West Bank continuously and relentlessly prepared and launched attacks. They trained hundreds of potential suicide bombers and managed to launch about 120 attacks, alas, almost all were intercepted and repelled by Israel's security services. Real-time intelligence and the combined, rapid response capability developed by the ISA, the Special Police Unit, military and air force elements were instrumental factors for thIs remarkable anti-terror success.
According to Diskin, ISA' special operations units and the Police Special Unit (yamam) were able to intercept most of these suicide bombers before theise could reach their objectives. "It takes a suicide bomber launched from Nablus about 60 minutes to reach his target in a major Israeli city like Netanya" explains Diskin, "we had to tailor our response to meet this short cycle". Typically, the ISA would get fragments of information about an imminent terror act before, or when the suicide bomber is launched, immediately triggering an early warning. When such intelligence was accurate enough, pre-emptive action would take place.

But when the first indication is received after the suicide bomber leaves on its final mission,all the fragmented intelligence must be gathered and updated continuously, developed into a clear understanding of the threat and its potential target, enabling to scramble the rapid-response teams to disrupt the threat's movement. These action teams are called to establish contact with the target, identify the threat and eliminate it before reaching its target. These operational teams are controlled by the inter-agency operational command and control centers, conducting the entire intercept, feeding on all intelligence sources throughout the event, to maintain a constant situational picture in real-time.

It took years to prepare all the organizations responsible for homeland security to operate effectively under these short timelines. "These capabilities must be prepared in advance, in order to work effectively in time of crisis" Diskin concludes.

Future threats are expected to be more complex, as terrorist organizations, operating in the modern, globalized and networked world are less hierarchical, more elusive than ever. In fact, most Islamic terror organizations are 'state sponsored', even when they do not have direct geographical access to the host nation. For example, Palestinian terrorist movements in Gaza, like the Islamic Jihad and Hamas get their weapons from sponsoring nations like Iran or North Korea. The military supplies are shipped through a global supply network by sea, with destinations in Yemen or Sudan. From clandestine beachheads the loads are smuggled over-land, entering Gaza through tunnels dug under the Egyptian - Gaza border at Rafah. Palestinian terror activists are also sent to Iran to train in the operation of these weapons. The level and sophistication of weapons accessible by terrorists is becoming unprecedented - ranging from advanced, powerful explosives, to anti-aircraft missiles, guided weapons, unmanned aerial vehicles, long range rockets and missiles.

Cyber terrorism is also becoming a growing challenge, and, since such activities are performed over cyberspace, the location of the perpetrators is irrelevant to their ability to cause harm, get support or access their targets.

In fact, the global Internet provides terrorists with many advantages, including recruitment tools - certain social network sites and chat-rooms where potential candidates undergo 'brainwashing', with their minds being indoctrinated and 'tendered', preparing them for potential suicide attacks. Other sites are used as indoctrination, and training tools, transferring knowledge and developing skills among remotely located recruits, on how to prepare improvised weapons, counter-intelligence actions and terror cells operations.

Terrorist's cybernetic capabilities also exploit the information services made available for peaceful purposes, such as GPS and geospatial intelligence, real-time communications via Internet, cellular phones or messaging devices, powerful encryption devices etc. These capabilities are added to the determination and willingness of terrorist organizations to carry out 'mega-terror' actions, regardless of the casualties or damage they cause.

"The world can successfully defeat and win the war against global terror" Diskin stated, " But to win this war, the nations determined to fight terror, must join forces, develop joint intelligence and effective operational capabilities."

According to Diskin, such joint operability must rely on close cooperation among intelligence agencies, establishing an agreeable legal framework among nations that will eliminate potential loopholes to be exploited by terrorists, and formulating cooperation among homeland security and counter-terror organizations from different countries, by developing joint operational capabilities. "The is a growing understanding and openness to these cooperative principles among the countries facing terror threats" Diskin concluded.

See: http://defense-update.com/analysis/2010/02112010_isa_counterterror_strategy.html
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Tuesday, November 2, 2010

Yet More Chinese Espionage


Taiwan Military Intel Officer, 'Double Agent' Detained for Espionage

TAIPEI (Kyodo) -- A Taiwanese military intelligence officer and an alleged double agent for China were in custody Tuesday as investigators probe the latest espionage scandal to hit Taiwan's defense establishment and assess the damage to its intelligence network.

The detained officer, identified by local media as Col. Lo Chi-cheng, allegedly transferred classified data over several years to a Taiwanese man linked to Taiwan's intelligence network and who has business interests in China.

The data was then allegedly passed on to Chinese intelligence, media reports said.

The two suspects were arrested Sunday and their homes searched after investigators witnessed the two men allegedly exchanging classified data in a Taipei street.

The Defense Ministry confirmed late Monday that the officer had been arrested, while ministry spokesman Yu Sy-tue told a press conference Tuesday that the case only had a limited impact on military intelligence activities.

Nonetheless, the Taipei-based China Times newspaper, whose editorial line strongly supports integration with China, described the case in its report as "probably the highest-level case of espionage involving the military in 20 years."

Local newspaper reports Tuesday were inconsistent on details of the case, including the content of the leaked intelligence and the name of the alleged double agent.

But reports that the data included names of Taiwan's agents in China were seemingly vindicated when Premier Wu Den-yih told the legislature Tuesday that the government has a duty of care and will do its best to bring the agents to Taiwan, the semiofficial Central News Agency reported.

Wu added, however, that the leaked list of names is four years old and that the government could "only do its best," CNA reported.

Taiwan has suffered several security breaches in its intelligence apparatus in recent years, including retired agents working for China and weapons information being sold to Beijing.

The latest incident coincides with an easing of tensions between Taipei and Beijing as economic relations flourish.

But growing Chinese support for military-to-military contact and political talks with Taiwan has not been reciprocated, with Taiwan President Ma Ying-jeou saying such talks must wait until at least the next presidential term.

(Mainichi Japan) November 2, 2010
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Monday, November 1, 2010

Chinese Espionage (again)



From The New Yorker . . .


Now that Russian spies have fallen short of our Hollywood fantasies, Americans have come to view China’s espionage efforts as one of two caricatures: impossibly vast and sophisticated or bumbling and antiquated. A flurry of new evidence suggests that the reality encompasses everything in between.

At the low end is the case of twenty-eight-year-old Glenn Duffie Shriver, a former international-relations student at Grand Valley State University in Michigan, who admitted in federal court last week that “he was befriended by Chinese intelligence officers while studying in Shanghai, agreed to spy for them and was finalizing a job at the C.I.A. when U.S. authorities found out what he was doing,” according to the Detroit Free Press. (h/t Shanghaiist.) Shriver had answered a newspaper ad seeking someone to write an article for a hundred and twenty dollars on U.S.-China relations. Then, he was approached by a pair of guys—Wu and Tang, in court documents—who mapped out a plan in which they would pay Shriver and he would get a job in the U.S. government, and voila!

Alas, for him, it didn’t go smoothly: He tried to get into the State Department Foreign Service, but flunked the exam twice. Then he applied for a job in the C.I.A.’s National Clandestine Service in 2007, at which time the game was up. Even so, his handlers paid him seventy thousand dollars along the way. He has settled on a plea agreement that carries four years in prison. (The Chinese embassy has reacted with umbrage—“Any attempts to defame China with fabricated allegations will prove futile,” a spokesman said—though I’m not clear if the defamation is the suggestion of espionage or the suggestion of such a ham-fisted attempt at it.)

By some accounts, Chinese efforts to snoop for economic purposes are considerably more sophisticated. The Times has written recently about “the new trade in business secrets,” in which employees of Chinese descent are accused of sharing industrial and technology secrets with researchers in China who have a connection to the government. But courts are still figuring out when such cases constitute regular theft of trade secrets and when they rise to the level of espionage by contributing to the work of a foreign government. As the Times notes, the Justice Department lost a case involving two California engineers who the government accused of “working with a venture capitalist in China to seek financing for a microchip business from China’s 863 program, which supports development of technologies with military applications.” (The judge disagreed, and, indeed, this is a complex detail because, as I wrote last year, the 863 program is intended to promote not only military technology but civilian good as well. So if an electric-car engineer at G.M. shares designs with a Chinese firm that receives 863-funding, is the engineer guilty of theft or espionage? Perhaps both, but the courts will have to decide.)

In the magazine this week, Seymour Hersh explores how the U.S. has, at various moments, both underestimated and overstated the cyber-security threat posed by China—and how neither mistake should be a source of comfort. In addition to providing a vivid primer on how not to disable your plane when you crash-land in foreign territory, he also quotes James Lewis, a cyber-espionage expert who worked for the Departments of State and Commerce in the Clinton Administration. China “is in full economic attack” inside the United States, Lewis says. “Some of it is economic espionage that we know and understand. Some of it is like the Wild West. Everybody is pirating from everybody else. The U.S.’s problem is what to do about it. I believe we have to begin by thinking about it”—the Chinese cyber threat—“as a trade issue that we have not dealt with.”

Read more http://www.newyorker.com/online/blogs/evanosnos/2010/10/chinese-espionage.html#ixzz143Zjq5Ll
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Friday, October 29, 2010

Turkish Espionage, Sex and Blackmail


9 Military Officers Arrested on Espionage Charges

Nine military officers, out of 13 who had been referred to court by the İstanbul Prosecutor's Office, were in court on Wednesday on charges of blackmail and espionage, while four others were released.

A total of 16 suspects had been taken to the Beşiktaş Courthouse in İstanbul yesterday, including one civilian and 15 military officers. Prosecutor Fikret Seçen then referred the 13 officers to court, demanding their arrest. The other three were released by the prosecution after questioning. The suspects testified at the İstanbul 13th High Criminal court until after midnight on Wednesday.

The officers were arrested on charges of membership in a criminal organization; destroying, damaging and falsifying documents relating to state security; illegally obtaining documents related to state security and illegally acquiring confidential documents for political or military espionage purposes.”

Eight suspects, including four other military officers and four Scientific and Technological Research Council of Turkey (TÜBİTAK) members and a higher ranking bureaucrat inside the Defense Ministry, were taken to the courthouse yesterday. Their interrogation before the judge continued well into the late evening.

The Taraf daily yesterday reported that the National Intelligence Organization (MİT) was assisting in the search for three foreign women under the names of İnesa, Lia Rahmatova and Nona Burduli. According to the paper, these foreigners, who are believed to still be in Turkey, are suspected of liaising between the suspects and foreign military services to whom the stolen information was sold.

The arrests are a culmination of investigations that began in August this year into a gang inside the Naval Forces which had arranged prostitutes for senior military, police officers and bureaucrats for the purposes of using recorded footage to blackmail their victims. As the operation expanded, it turned into an espionage investigation that included highly confidential and strategic military documents.

There are 49 suspects in the investigation, most of whom are military officers on active duty, including four cryptology experts from TÜBİTAK. In coming days, two admirals, five senor colonels and six other members of the military are also expected to be brought for their testimonies. The prosecution yesterday said an arrest warrant had been issued for four other soldiers who are currently abroad.

In August police had seized documents with sensitive information at the houses of those who at the time were thought to be prostitution and blackmail suspects, which they then relayed to the MİT for advice on whether these documents could have been sent to foreign intelligence units. This is how the investigation expanded to reveal the espionage.

29 October 2010, Friday
TODAY’S ZAMAN İSTANBUL
http://www.todayszaman.com/tz-web/news-225725-101-9-military-officers-arrested-on-espionage-charges.htmlSphere: Related Content

Thursday, October 28, 2010

MI6 Chief: 1st Ever Public Speech - Transcript


Sir John Sawers's Speech – full text - The Guardian

Transcript of today's [28 October 2010] first public speech by a serving MI6 chief:

The Times published a reader's letter earlier this year. It read: "Sir – is it not bizarre that MI5 and MI6, otherwise known as the secret services, currently stand accused of being – er – secretive?"

I may be biased. But I think that reader was on to something rather important and most government work these days is done by conventional and transparent processes. But not all.

Britain's foreign intelligence effort was first organised in 1909, when the Secret Intelligence Service was formed.

We have just published an official history of our first 40 years. I'm sure you will all have read all 800 pages of it.

The first chief, Mansfield Cumming, used to pay the salaries of SIS officials out of his private income, dispensed in cash from a desk drawer. I'm glad to say that, even after the chancellor's statement last week, I'm not in the same position.

SIS's existence was admitted only in 1994. We British move slowly on such things.

And this, I believe, is the first public speech given by a serving chief of the British Secret Intelligence Service.

"Why now?" might you ask. Well, intelligence features prominently in the National Security Strategy and the Strategic Defence and Security Review, published last week.

We often appear in the news. Our popular name – MI6 – is an irresistible draw. We have a website, and we've got versions in Arabic and Russian. We recruit our staff openly, with adverts in the national press.

But debate on SIS's role is not well informed, in part because we have been so determined to protect our secrets.

In today's open society, no government institution is given the benefit of the doubt all the time. There are new expectations of public – and legal – accountability that have developed. In short, in 2010 the context for the UK's secret intelligence work is very different from 1994.I am not going to use today to tantalise you with hints of sensitive operations or intelligence successes.

Instead, I want to answer two important questions: what value do we get from a secret overseas intelligence effort in the modern era? How can the public have confidence that work done in secret is lawful, ethical, and in their interests?

First, how do we all fit in? The Secret Intelligence Service, MI6, operates abroad, dealing with threats overseas and gathering intelligence mainly from human sources. The security service, MI5, works here in the UK, protecting the homeland from terrorist attack and other threats.

GCHQ produces intelligence from communications, and takes the lead in the cyber world.

These three specialised services form the UK intelligence community, and we operate in what the foreign secretary has called a networked world. Technology plays an ever growing part in our work, for SIS as well as GCHQ, and the boundary line between home and abroad is increasingly blurred.

So the three agencies work increasingly closely together, and the next five years will see us intensifying our collaboration to improve our operational impact and to save money. Yes, even the intelligence services have to make savings.

Secret intelligence is important information that others wish you not to know; it's information that deepens our understanding of a foreign country or grouping, or reveals their true intentions. It's information that gives us new opportunities for action.

We at SIS obtain our intelligence from secret agents. These are people are nearly all foreign nationals, who have access to secret information and who choose to work with us.

Our agents are the true heroes of our work. They have their own motivations and hopes. Many of them show extraordinary courage and idealism, striving in their own countries for the freedoms that we in Britain take for granted.

Our agents are working today in some of the most dangerous and exposed places, bravely and to hugely valuable effect, and we owe a debt to countless more whose service is over.

Agents take serious risks and make sacrifices to help our country. In return, we give them a solemn pledge: that we shall keep their role secret.

The information we get from agents is put into an intelligence report. The source is described in general terms. It is just that – a report. It tells us something new or corroborates what we suspect.

A report's value can be overplayed if it tells us what we want to hear, or it can be underplayed if it contains unwelcome news or runs against received wisdom.

It is a part of the picture, and may not be even wholly accurate, even if the trusted agent who gave it to us is sure that it is.

So sources of intelligence have to be rigorously evaluated, and their reports have to be honestly weighed alongside all other information. Those who produce it, and those who want to use it, have to put intelligence in a wider context. The Joint Intelligence Committee plays a crucial role.

The Butler Review following Iraq was a clear reminder, to both the agencies and the centre of government, politicians and officials alike, of how intelligence needs to be handled. The SIS board recently reviewed our implementation of Lord Butler's recommendations, to make sure we've implemented them fully, in spirit as well as in substance.

I am confident that they have been. And we will look at the wider issues again once the Chilcott Inquiry reports.

So why do we need secret intelligence? Well, let's start with the terrorist problem.

Most people go about their daily work not worrying about the risk of a terrorist attack. That a bomb may have been planted on their route, or hostages might be seized. I'm glad they don't worry about those sorts of things: part of our job is to make people feel safe.

But those threats exist, as we're recalling now with the 7/7 inquest. That said, on any given day the chances that a terrorist attack will happen on our streets, even in central London, feel small enough to be safely ignored by the public.

You, and millions of people like you, go about your business in our cities and towns free of fear because the British government works tirelessly, out of the public eye, to stop terrorists and would-be terrorists in their tracks.

The most draining aspect of my job is reading, every day, intelligence reports describing the plotting of terrorists who are bent on maiming and murdering people in this country.

It's an enormous tribute to the men and women of our intelligence and security agencies, and to our cooperation with partner services around the world, that so few of these appalling plots develop into real terrorist attacks.

Some of these terrorists are British citizens, trained in how to use weapons, how to make bombs. Others are foreign nationals who want to attack us to undermine our support for forces of moderation around the world.

Many of the reports I read describe the workings of the al-Qaida network, rooted in a nihilistic version of Islam.

Al-Qaida have ambitious goals. Weakening the power of the west. Toppling moderate Islamic regimes. Seizing the holy places of Islam to give them moral authority. Taking control of the Arab world's oil reserves. They're unlikely to achieve these goals, but they remain set on trying, and are ready to use extreme violence.

Jonathan Evans, the head of MI5, recently described how the threat is intensifying. Precisely because we are having some success in closing down the space for terrorist recruitment and planning in the UK, the extremists are increasingly preparing their attacks against British targets from abroad.

It's not just the border areas of Afghanistan and Pakistan. Al-Qaida affiliates in Yemen, Somalia and North Africa pose real threats to the UK.

From his remote base in Yemen, Al-Qaida leader and US national Anwar al-Awlaki broadcasts propaganda and terrorist instruction in fluent English over the internet.

Our intelligence effort needs to go where the threat is. One of the advantages of the way we in SIS work is that we are highly adaptable and flexible. We don't get pinned in one place.

There is no one reason for the terrorist phenomenon. Some blame political issues like Palestine or Kashmir or Iraq. Others cite economic disadvantage. Distortions of the Islamic faith. Male supremacy. The lack of the normal checks and balances in some countries. There are many theories.

I've worked a lot in the Islamic world. I agree with those who say we need to be steady and stand by our friends.

Over time, moving to a more open system of government in these countries, one more responsive to people's grievances, will help. But if we demand an abrupt move to the pluralism that we in the west enjoy, we may undermine the controls that are now in place and terrorists would end up with new opportunities.

Whatever the cause or causes of so-called Islamic terrorism, there is little prospect of it fading away soon.

SIS deals with the realities, the threats as they are. We work to minimise the risks. Our closest partners include many in the Muslim world who are concerned at the threat Al-Qaida and their like poses to Islam itself.

In the UK, the security service, MI5, leads our counter-terrorism effort. They do a superb job and SIS's work starts with the priorities that the security service sets.

It's not enough to intercept terrorists here, at the very last minute. They need to be identified and stopped well before then, which means action far beyond our own borders.

This is where SIS comes in. Over one-third of SIS resources are directed against international terrorism. It's the largest single area of SIS's work.

We get inside terrorist organisations to see where the next threats are coming from. We work to disrupt terrorist plots aimed against the UK, and against our friends and allies. What we do is not seen. Few know about the terrorist attacks we help stop.

It scarcely needs saying, but I'll say it anyway: working to tackle terrorism overseas is complex and often dangerous. Our agents, and sometimes our staff, risk their lives.

Much intelligence is partial, fragmentary. We have to build up a picture. It's like a jigsaw, but with key sections missing, and pieces from other jigsaws mixed in.

SIS officers round the world make judgements at short notice with potentially life or death consequences.

Say an agent warns us of a planned attack. We may need to meet that agent fast and securely, to understand his intelligence more fully. To work with GCHQ who look for other signs. To work with MI5 and the police to act on that intelligence here in the UK.

Ministers and lawyers need to be briefed and consulted on next steps. We need partner agencies abroad to pool information, to monitor individuals or to detain them where there are clear, specific concerns.

Disrupting the terrorists is a painstaking process with much careful preparation, and then sudden rapid activity. Details have to be got right. It all has to be tackled fast and securely. There is little margin for error.

All this goes on 24 hours a day, every day of the year. And it keeps us far safer than we would be without it.

Proliferation terrorism is difficult enough and, despite our collective efforts, an attack may well get through. The human cost would be huge. But our country, our democratic system, will not be brought down by a typical terrorist attack.

The dangers of proliferation of nuclear weapons – and chemical and biological weapons – are more far-reaching. It can alter the whole balance of power in a region.

States seeking to build nuclear weapons against their international legal obligations are obsessively secretive about it. SIS's role is to find out what these states are doing and planning, and identify ways to slow down their access to vital materials and technology.

The revelations around Iran's secret enrichment site at Qom were an intelligence success. They led to diplomatic pressure on Iran intensifying, with tougher UN and EU sanctions which are beginning to bite. The Iranian regime must think hard about where its best interests lie.

The risks of failure in this area are grim. Stopping nuclear proliferation cannot be addressed purely by conventional diplomacy. We need intelligence-led operations to make it more difficult for countries like Iran to develop nuclear weapons.

The longer international efforts delay Iran's acquisition of nuclear weapons technology, the more time we create for a political solution to be found.

Long-range strategic intelligence: the National Security Strategy which the prime minister published last week sets out the strategic direction for foreign, defence and security policy for the years ahead. Intelligence is at the heart of that strategy.

SIS has the responsibility to gather long-range strategic intelligence, to track military and economic power in other countries, and find out what they going to do with it. We try to see inside the minds of potential policy adversaries and predict their behaviour.

We have expertise on states that operate opaquely and without public accountability. We provide early warning of new weapons systems, or of major changes in policy.

Machiavelli said that "surprise is the essential factor in victory". A lot of SIS work is about making sure that the British government does not face unwelcome surprises. And that some of our adversaries do.

Cyber: My colleague Iain Lobban at GCHQ recently described the cyber threats we face in the modern world.

Attacks on government information and commercial secrets of our companies are happening all the time. Electricity grids, our banking system, anything controlled by computers, could possibly be vulnerable. For some, cyber is becoming an instrument of policy as much as diplomacy or military force.

As Iain is the first to recognise, there isn't a purely technological solution. We need to invest in technology to defend ourselves, and the government has allocated funds for that purpose in the Spending Round.

Even high technology threats have that crucial human dimension, and SIS will be gathering intelligence on individuals and states launching cyber attacks against us, to find out how they organise themselves and to develop ways to counter them.

We have already set to work. It's a big task of the future.

Supporting the military, and building security where the military are involved in a conflict, you will find SIS and GCHQ alongside them.

In Afghanistan, our people provide tactical intelligence that guides military operations and saves our soldiers' lives. Our strategic intelligence helps map the political way forward.

We are building up the Afghan security service, already probably the most capable of the Afghan security institutions, to help the Afghans take responsibility for their own security.

Capacity building is not limited to Afghanistan. We offer training and support to partner services around the world. It wins their cooperation, it improves the quality of their work, and it builds respect for human rights.

Our government expects SIS to maintain a global reach, collecting intelligence in all areas of major British interest to reduce the risk of unpleasant surprises.

And we have our network of partners which provides us a discreet channel of communication to other governments on the most sensitive issues.

So we are a very special part of government. SIS exists to give the UK advantage. We are a sovereign national asset. We are the secret frontline of our national security.

How can the public have confidence that work done by us in secret is lawful, ethical and in their interests?

Let me explain how it all works in practice.

SIS does not choose what it does. The 1994 Intelligence Services Act sets the legal framework for what we do. Ministers tell us what they want to know, what they want us to achieve. We take our direction from the National Security Council.

As chief of SIS, I am responsible for SIS operations. I answer directly to the foreign secretary.

When our operations require legal authorisation or entail political risk, I seek the foreign secretary's approval in advance. If a case is particularly complex, he can consult the attorney general. In the end, the foreign secretary decides what we do.

Submissions for operations go to the foreign secretary all the time. He approves most, but not all, and those operations he does not approve do not happen. It's as simple as that.

There is oversight and scrutiny by parliamentarians and by judges.

The Intelligence and Security committee is chaired by Sir Malcolm Rifkind, and includes other senior politicians, many of them former ministers. They hold us to account and can investigate areas of our activity.

And two former judges have full access to our files, as intelligence commissioner and interception commissioner. They make sure our procedures are proper and lawful.

These processes of control and accountability are as robust as you will find anywhere. SIS fully supports them. We want to enjoy public confidence.

We don't operate on our own. Intelligence is a team game. If we need to track a British terrorist in another country, or stop a shipment of components for a secret nuclear programme, we need to work with services abroad.

We work with over 200 partner services around the world, with hugely constructive results. And our intelligence partnership with the United States is an especially powerful contributor to UK security.

No intelligence service risks compromising its sources. So we have a rule called the control principle – the service who first obtains the intelligence has the right to control how it is used, who else it can be shared with, and what action can be taken on it.

It's rule number one of intelligence sharing. We insist on it with our partners, and they insist on it with us. Because whenever intelligence is revealed, others try to hunt down the source. Agents can get identified, arrested, tortured and killed by the very organisations who are working against us.

So if the control principle is not respected, the intelligence dries up. That's why we have been so concerned about the possible release of intelligence material in recent court cases.

We can't do our job if we work only with friendly democracies. Dangerous threats usually come from dangerous people in dangerous places. We have to deal with the world as it is.

Suppose we receive credible intelligence that might save lives, here or abroad. We have a professional and moral duty to act on it. We will normally want to share it with those who can save those lives.

We also have a duty to do what we can to ensure that a partner service will respect human rights. That is not always straightforward.

Yet if we hold back, and don't pass that intelligence, out of concern that a suspect terrorist may be badly treated, innocent lives may be lost that we could have saved.

These are not abstract questions for philosophy courses or searching editorials. They are real, constant, operational dilemmas.

Sometimes there is no clear way forward. The more finely-balanced judgments have to be made by Ministers themselves. I welcome the publication of the consolidated guidance on detainee issues. It reflects the detailed guidance issued to SIS staff in the field and the training we give them.

Torture is illegal and abhorrent under any circumstances, and we have nothing whatsoever to do with it. If we know or believe action by us will lead to torture taking place, we're required by UK and international law to avoid that action. And we do, even though that allows the terrorist activity to go ahead.

Some may question this, but we are clear that it's the right thing to do. It makes us strive all the harder to find different ways, consistent with human rights, to get the outcome we want.

Other countries respect our approach on these issues. Even where we find deep differences of culture and tradition, we can make progress, slowly but surely, by seeking careful assurances and providing skilled training.

I also welcome the prime minister's initiative in setting up the Gibson Inquiry into the detainee issue. If there are more lessons to be learned, we want to learn them.

And, after 9/11, the terrorist threat was immediate and paramount. We are accused by some people not of committing torture ourselves but of being too close to it in our efforts to keep Britain safe.

Let me say this: SIS is a Service that reflects our country. Integrity is the first of the service's values.

I am confident that, in their efforts to keep Britain safe, all SIS staff acted with the utmost integrity, and with a close eye on basic decency and moral principles.

So, back to that reader's letter in The Times.

The recent debate about secrecy reflects two concerns. First, national security, and the need for the intelligence and security agencies to work in secret to protect British interests and our way of life from those who threaten it.

And second, the need for justice – the rights of citizens to raise complaint against the government and get a fair hearing.

As a public servant, and as a citizen, I devoutly want both objectives upheld, and not to have one undermine the other.

The judges have to determine what constitutes a fair trial.

We in the intelligence and security agencies have to make sure that our secrets don't become available to those who are threatening our country. And we have to protect our partners secrets.

As the prime minister said in parliament, at present we're unable to use secret material in court with confidence that the material will be protected.

The government has promised a green paper to set out some better options for dealing with national security issues in the courts, and I look forward to that.

Part of sustaining public confidence in the intelligence services is debate about the principles and value of intelligence work.

And the purpose of today is to explain what we in SIS do and why we do it. Why our work is important, and why we can't work in the open. A lot is at stake.

Secret organisations need to stay secret, even if we present an occasional public face, as I am doing today. If our operations and methods become public, they won't work.

Agents take risks. They will not work with SIS, will not pass us the secrets they hold, unless they can trust us not to expose them.

Foreign partners need to have certainty that what they tell us will remain secret – not just most of the time, but always.

Without the trust of agents, the anonymity of our staff, the confidence of partners, we would not get the intelligence. The lives of everyone living here would be less safe. The United Kingdom would be more vulnerable to the unexpected, the vicious and the extreme.

Secrecy is not a dirty word. Secrecy is not there as a cover up. Secrecy plays a crucial part in keeping Britain safe and secure.

And without secrecy, there would be no intelligence services, or indeed other national assets like our Special Forces. Our nation would be more exposed as a result.

Without secrecy, we can't tackle threats at source. We would be forced to defend ourselves on the goal-line, on our borders. And it's more than obvious that the dangers of terrorism, nuclear proliferation and cyber attack are not much impressed by international borders.

Ladies and gentlemen, the remarkable men and women who make up the staff of SIS are among the most loyal, dedicated and innovative in the entire public service.

We ask more of them than we do of any other public servants not in uniform. Exceptional people, doing extraordinary things for their country.

Our people can't and don't talk about what they do. They receive recognition for their achievements only within the confines of the service.

You don't know them, but I do. It is an honour to lead them.
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