Chinese Electronic Espionage Leads To UK Office of Cyber Security…

The Times Online reported in January that the UK’s MI5 was battling devious Chinese attempts to entrap UK businessmen, with electronic bugging devices….and sexual “honey traps”. (Not as imaginative as the CIA’s “acoustic kitty,”  but probably more effective):

“A leaked MI5 document says that undercover intelligence officers from the People’s Liberation Army and the Ministry of Public Security have also approached UK businessmen at trade fairs and exhibitions with the offer of “gifts” and “lavish hospitality”.

The gifts — cameras and memory sticks — have been found to contain electronic Trojan bugs which provide the Chinese with remote access to users’ computers.

MI5 says the Chinese government “represents one of the most significant espionage threats to the UK” because of its use of these methods, as well as widespread electronic hacking.

Written by MI5’s Centre for the Protection of National Infrastructure, the 14-page “restricted” report describes how China has attacked UK defence, energy, communications and manufacturing companies in a concerted hacking campaign.

It claims China has also gone much further, targeting the computer networks and email accounts of public relations companies and international law firms. “Any UK company might be at risk if it holds information which would benefit the Chinese,” the report says.

The explicit nature of the MI5 warning is likely to strain diplomatic ties between London and Beijing. Relations between the two countries were damaged last month after China’s decision to execute a mentally ill British man for alleged drug trafficking.

Earlier this month the United States demanded that China investigate a sophisticated hacking attack on Google and a further 30 American companies from Chinese soil.

China has occasionally attempted sexual entrapment to target senior British political figures. Two years ago an aide to Gordon Brown had his BlackBerry phone stolen after being picked up by a Chinese woman who had approached him in a Shanghai hotel disco.”

So now you know better than to fraternize too cozily at a Chinese trade event.

The 14-page “restricted” report by MI5 Director General, Jonathan Evans, lists attacks on UK defense, energy, communications and manufacturing companies and is the latest and most explicit warning from UK authorities on Chinese espionage.  It was sent to hundreds of business leaders in 2009.

Evans’ lobbying led to the creation of the Office of Cyber Security (due to open in March 2010).

The UK only follows the US on this. As far back as June 2009, Barack Obama announced the need for a new official position to oversee cybersecurity in the US, a move applauded by some in the IT community, like McAfee’s Director of Threat Intelligence, Phyllis Schneck, but criticized by others, like Wayne Crews, VP at the Competitive Enterprise Institute, who argued that attempts to collectivize and centralize information technology risks were liable to crowd out private enterprise solutions.

The Cat They Sent Out Into The Cold…

The more you dig into the history of the CIA’s covert programs, the more it resembles not so much a fast-paced who-dunnit as a low-rent why-ever-did-they-do-it. Only it wasn’t low rent. A hefty wad of tax-payer money subsidized such expensive follies as Project Acoustic Kitty, in which the agency’s whizzes tried to turn man’s favorite feline into a wired-up bot that would snoop on conversations in back-alleys:

“Victor Marchetti, a former CIA officer, told The Telegraph that Project Acoustic Kitty was a gruesome creation. He said: “They slit the cat open, put batteries in him, wired him up. The tail was used as an antenna. They made a monstrosity. They tested him and tested him. They found he would walk off the job when he got hungry, so they put another wire in to override that.”

Mr Marchetti said that the first live trial was an expensive disaster. The technology is thought to have cost more than £10 million. He said: “They took it out to a park and put him out of the van, and a taxi comes and runs him over. There they were, sitting in the van with all those dials, and the cat was dead.”

The document, which was one of 40 to be declassified from the CIA’s closely guarded Science and Technology Directorate – where spying techniques are refined – is still partly censored. This implies that the CIA was embarrassed about disclosing all the details of Acoustic Kitty, which took five years to design.

Dr Richelson, who is the a senior fellow at the National Security Archive in Washington, said of the document: “I’m not sure for how long after the operation the cat would have survived even if it hadn’t been run over.”

From “CIA Recruited Cat To Bug Russians,” The Telegraph, November, 2001

KGB Operations Against The US

Last week, I blogged Douglas Valentine on the secret history of America’s Central Intelligence Agency, a long history that involved revolutions, coups, torture, assassinations, and subversion. Today, the CIA is probably far larger than any other spy agency, but until 1991, the Soviet Union’s KGB was a good match.  The excerpt that follows is from a face-off between former CIA counter-intelligence chief Paul J. Redmond and former major-general of the Soviet KGB, Oleg Danilov Kalugin, and was hosted by the University of Delaware on March 12, 2003.

(Note: The KGB was disbanded in 1991, following the collapse of the Soviet Union. It has been replaced by the Russia security force, the FSB).

“We conducted a clandestine war with assassination if necessary,” he [Kalugin] said. “Our mission was to do everything we could to have a war without the fighting. This was seen as amoral in America, but it was our ideology.”

Kalugin infiltrated the United States as a journalist, attending Columbia University in New York City as a Fulbright Scholar in 1958. From 1965-70, he served as deputy resident and acting chief of the residency at the Soviet Embassy in Washington, D.C., quickly becoming the youngest general in the history of the KGB. Eventually, he became the head of worldwide foreign counterintelligence, serving at the center of some of the most important espionage cases, including the Walker spy ring.

Finding that the KGB’s internal functions had little to do with the security of the state and everything to do with keeping corrupt Communist Party officials in power, Kalugin retired from the KGB in 1990 and became a public critic of the communist system. He currently teaches at the Centre for Counterintelligence and Security Studies.

Kalugin said one of his most effective spying techniques was pitting American citizens against their own government.

“We appealed to pacifists and told them, ‘You cannot have peace unless you stop the internal situation of the U.S.,’” he said. “We got environmentalists and told them, ‘Capitalists spend any amount of money even if it does destroy your precious nature.’ Well, at the time, the Soviet Union was the most polluted country in the world,” he joked.

Kalugin listed several astonishing facts from a classified KGB report, proving just how much the organization is committed to counterintelligence. He said that in 1981 the KGB reported that they had funded or supported 70 books, 66 feature and documentary films, more than 100 television stations, 4,865 articles in magazines or newspapers, 300 conferences or exhibitions and 170,000 lectures around the world.

“Friendship, companionship—that is fine,” Kalugin said, “but national interests remain. Counterintelligence will never cease to exist. The U.S. remains priority number one.”

The Mental Gulag Is Here (Update)

Mind-reading passengers for terrorist potential – (note, potential) i.e. “thought crimes” – is here, folks, and seriously being batted about by Homeland Security:

“The aim of one company that blends high technology and behavioral psychology is hinted at in its name, WeCU — as in “We See You.”
The system that Israeli-based WeCU Technologies has devised and is testing in Israel projects images onto airport screens, such as symbols associated with a certain terrorist group or some other image only a would-be terrorist would recognize, said company CEO Ehud Givon.
Continue reading

Doug Valentine On The Empire of The Lie

Douglas Valentine, author of several masterful books on national security and the CIA, talks to Susan Mazur about Tim Weiner´s new book on the CIA (“Legacy of Ashes”), the nexus of finance and espionage, and the propaganda campaign that lets Americans think the CIA is a force for good.

Here´s a snippet:

“Most of what Weiner writes about the CIA is already known. It’s a history book with a bias, not an expose, at least not for the Vietnam generation. He doesn’t even really get into the current Bush administration. He gives us a predictable treatment of William Casey and the Contras, when there was an incredible revival of the CIA under Casey.”

And that´s precisely what I´d say about exposes that appear in establishment outlets, even if they seem to be literary and anti-establishment (Vanity Fair, New York Times, even,  perhaps Rolling Stone, although much less so). They are less about exposing as about controlling the terms of the discourse, that is, the boundaries within which discussion can take place.

Another insight from Valentine:

“Angleton thought William Colby might be a mole. Angleton exposed the divisions within the CIA after 1966, the Colby vs. Helms factions. He also represented the literary sensibility the CIA once had, where finding secrets was like teasing the meaning out of a poem. Now we have sledgehammer spies.”

(Colby, by the way, died in a ‘boating accident’ in Maryland, on the day that a prosecutor got permission to set up a grand jury to probe the death of Frank Olson, who was involved in chemical warfare research and had been one of the subjects of the CIA´s mind control experiments. The CIA claimed Olson jumped to his death from a hotel window, although his injuries, according to the autopsy, could as well have been inflicted by a blunt instrument. I should note that at the time of his death in 1996 Colby´s name was being used on the letter head of Strategic Investments, a publication of Agora Inc. (co-owned by my co-author), according to several reports, although I can´t confirm to my satisfaction the exact status of that association. Several unconfirmed reports also link Colby to knowledge about the death (or killing, according to some) of White House deputy counsel, Vincent Foster, a preoccupation at the time, of Agora co-founder James Davidson)

More from Douglas Valentine:

“The CIA gets oodles of money from the arms business. Most of their income comes from criminal activity.

The Russian Mafia operates with a sort of impunity. And so does the Israeli Mafia. And one of the reasons they have this sort of impunity is that they’re sharing their profits with the CIA.

And I think a lot of CIA money is capital investments. They’re like movie producers. They want to overthrow the Iraqi government, they go to companies like Halliburton and others who are going to profit from the overthrow of Iraq. And like the executive producers of some movie, they get them to ante-up some cash. Telling them, don’t worry about it, the government contracts you get in return will cover your investment. Plus they have the old boy network – which now is so far flung.

Suzan Mazur: Plus some of the military contractors are organized crime and have had contracts since the 50s.

Doug Valentine: Exactly. Which bring us back to Barry Seal (Iran-Contra). Because in 1972, Barry Seal was to fly some arms and some explosives into Mexico. What the Brooklyn Drug Task Force found out is that this guy named Murray Kessler, who was involved with the Gambino family in Brooklyn, had an arms manufacturing company in New Jersey where the guns and the bombs came from.

Suzan Mazur: And some of these arms merchants also had security clearance during the McNamara and Clifford years of heading the Defense Department. They make weapons for the US government and some for whoever they feel like.

Doug Valentine: From my perspective, the spy industry and especially the arms industry, is the foundation on which the American empire is built. The United States has a military budget of I think $300 billion dollars and the CIA budget is like $50 billion – that’s a year. Together that’s bigger than the gross national product of any country in the world. And in the meantime we’re worried about 20 guys in Al-Qaeda.

[Lila: This statement is inaccurate, as both GDP and GNP in most developed countries were near or over a trillion in 2007. See current figures here. I think the author might have been misquoted on this and might have meant “many countries,”  for example, in the developing world. However, projections for 2010 place US military spending in excess of 1 trillion, if all military-related expenditures are included).

Continuing with the interview:

“Suzan Mazur: Which exploits of the agency do you consider the most diabolical – aside from the fact that one of its founding fathers molested two of his own children – and a reason why the CIA should have been dismantled years ago?

Doug Valentine: Your readers don’t want to know that answer. The most dastardly thing that the CIA has done is to wage this campaign of psychological warfare against the American people. Where the American people don’t see the CIA for a bunch of basically American KGB agents who are conducting criminal activities around the world. There’s a movie called The Usual Suspects with a much feared criminal named Keyser Soze. And Keyser is talking to a cop and he says the greatest trick that the Devil ever pulled was convincing the world that he doesn’t exist.

And this is what people like Weiner are doing with books about the CIA that don’t explain it for what it really is. They’re part of a propaganda machine that’s making the American people see the CIA in mythological terms as good guys, crusaders, as Lawrence of Arabia – when, in fact, they’re criminals. They’re part of THE GRAND LIE.”

My Comment

The piece is long and, for an intelligence aficionado, packed with illuminating detail. Among other things, Valentine touches on James Jesus Angleton, the most compelling of the spy masters (since he was chief of counter intelligence, I should call him chief spy hunter), the extensive role of private intelligence (which I touched on in my Abu Ghraib book), as well as the manipulation of Wikipedia, which Valentine regards as considerably influenced by the CIA.  This confirms my own long-standing observations about Wikipedia.  On crucial topics, it stays within the bounds of  debate allowed by  Western establishment interests and is very far from being an objective or quasi-scholarly affair. (I use the term Western because despite a substantial component of foreigners, the predominant interests served are the interests of the state and the military-industrial and financial industries), the most influential and powerful of which are Western. I do not use the terms capitalist, because I see the establishment as essentially a technocrat or money-managing class, working against capital formation in many respects.

And a final word, from the lips of Bill Colby himself:

“The CIA owns everyone of any significance in the major media.” [Researching the sources of this phrase, I find several sites like this claiming that it is “fake” and to be found unsourced only in a 2000 book by David McGowan, from whence it’s been repeated endlessly on the web. I’ll check up on this but for now am leaving the quote up.]

Was this tongue-in-cheek, or meant to be taken literally? You decide..

Israeli National Airline a Front for Israeli Secret Police?

Jonathan Cook in Dissident Voice:

“South Africa deported an Israeli airline official last week following allegations that Israel’s secret police, the Shin Bet, had infiltrated Johannesburg international airport in an effort to gather information on South African citizens, particularly black and Muslim travellers.

The move by the South African government followed an investigation by local TV showing an undercover reporter being illegally interrogated by an official with El Al, Israel’s national carrier, in a public area of Johannesburg’s OR Tambo airport.

The programme also featured testimony from Jonathan Garb, a former El Al guard, who claimed that the airline company had been a front for the Shin Bet in South Africa for many years.

Of the footage of the undercover reporter’s questioning, he commented: “Here is a secret service operating above the law in South Africa. We pull the wool over everyone’s eyes. We do exactly what we want. The local authorities do not know what we are doing.”

UK Military Protocol for Security & Counter-Intel Ops

An important document on how the British state deals with what it perceives as security threats:

“This significant, previously unpublished document (classified “RESTRICTED”, 2389 pages), is the UK military protocol for all security and counter-intelligence operations.

The document includes instructions on dealing with leaks, investigative journalists, Parliamentarians, foreign agents, terrorists & criminals, sexual entrapments in Russia and China, diplomatic pouches, allies, classified documents & codewords, compromising radio and audio emissions, computer hackers—and many other related issues.
The document, known in the services as the “JSP 440” (“Joint Services Protocol 440”), was referenced by the RAF Digby investigation team as the protocol justification for the monitoring of Wikileaks, as mentioned in “UK Ministry of Defence continually monitors WikiLeaks: eight reports into classified UK leaks, 29 Sep 2009.”

Read more at Wikileaks on UK protocols for dealing with security threats of all kinds, from investigative journalists looking for disclosure of official documents to Chinese officials seeking “influence” (there’s an extensive section describing Chinese intelligence gathering).