Counterintelligence News for the week of:

October 1-7, 2006

Secret Papers Could Halt CIA Case
Vice President Cheney's former chief of staff intends to load up his criminal trial with information about nine national security matters, the names of foreign leaders and details about various terrorist groups, according to court filings in the Valerie Plame leak case….(AP, 7 Oct 06)

Pak spy, associate held in south Delhi

Special Cell officials of Delhi Police claimed to have busted an espionage ring on Friday, following the arrest of an alleged spy, trained by Pakistan's Inter Services Intelligence (ISI) agency, and his associate from Madanpur Khadar in south Delhi….(Times of India, 7 Oct 06)

Italian Prosecutors Complete CIA Probe

Prosecutors have completed their investigation into the alleged CIA kidnapping of an Egyptian cleric in Italy and were preparing to ask that more than two dozen Americans and several Italian intelligence officials be ordered to stand trial…(AP, 7 Oct 06)

Can Moscow exploit its old Iraqi ties?

…Intelligence links between Russia and Iraq date back to 1973, when Nadhim Kazzar, then head of Iraq's General Security, launched a failed coup attempt against then president Ahmed Hassan al-Bakr and vice-president Saddam Hussein. In the aftermath, Saddam responded by turning to the Soviet KGB for help in reorganizing and modernizing Iraq's intelligence agencies. Russian personnel soon began training large numbers of Iraqi military and security personnel….(Jane’s, 6 Oct 06)

Historic Hyes: Famous spy couple recall brush with world destiny

When, in 1943, Adolph Hitler schemed to assassinate Theodore Roosevelt, Josef Stalin and Winston Churchill while the three world leaders met in Tehran, two young Armenians were recruited to help foil the plot. The names of Gevorg and Gohar Vardanyan were revealed in declassified information in 2000, and the Russian couple came to Yerevan last week, where they told their story….(Armenia Now, 6 Oct 06)

United States concern as China targets spy satellite with laser beam

…Clearly, the incident sparked fresh concerns among US officials and watchdog groups about America's ability to determine if satellite problems are caused by malfunctions, weather anomalies, or targeted attacks….(Scotsman, 6 Oct 06)

Appeal by Chinese Researcher for Times May Soon Be Heard

A Chinese researcher for The New York Times may appear in court as early as next week to appeal his conviction on a fraud charge, but his legal team is worried that it will be unable to call witnesses, submit evidence or provide him with adequate representation…The case of Mr. Zhao, 44, a researcher in The Times’s Beijing bureau…(New York Times, 6 Oct 06)

Uzbek pro-government fund accuses Danish aid group of espionage

An Uzbek government-backed fund on Friday accused a Danish aid agency of espionage, continuing a government crackdown on foreign-financed activities in the tightly controlled ex-Soviet state….(AP, 6 Oct 06)

Where's the reckoning?

The separate espionage episodes involving WestJet Airlines Ltd. and U.S. computer giant Hewlett-Packard Co. illustrate once again the need for strong, independent boards capable of ensuring that corporate officers adhere to the highest ethical standards and of taking tough action when they don't. Yet in both cases, it appears the directors would be perfectly happy if the negative headlines went away and they could go back to business as usual. This is simply not acceptable….(Globe and Mail, 6 Oct 06)

Technician convicted for stealing trade secrets
An Angelina County jury convicted a local electrical engineering firm's former repair technician Thursday morning for stealing company trade secrets….(Lufkin Daily, 6 Oct 06)

The First Word: The case for house arrest

The case of Jonathan Pollard - the American Jew convicted in 1986 of spying on the United States for Israel - has been on the agenda of Jewish activists for two decades….(Jerusalem Post, 6 Oct 06)

Justice Dept. Aims To Block Taiwan In Spy Probe

The Justice Department is urging a federal judge to block an unusual attempt by Taiwan to prevent the use of its diplomatic cables in the prosecution of a Virginia man who was one of the State Department's top Asia experts….(New York Sun, 5 Oct 06)

Our man in the KGB

…This meeting took place in late May 1967, about 10 days before the outbreak of the Six-Day War, at the height of what subsequently came to be known as "the waiting period." The two participants were a diplomat in the Soviet embassy in Tel Aviv - who was actually an agent of the KGB, the Soviet intelligence service - and Viktor Grayevsky, a journalist and radio broadcaster. This meeting was one of the high points in Grayevsky's 14-year career as a covert agent. To be precise, he was a double agent…(Haaretz, 5 Oct 06)

Europeans Berate Bank Group and Overseer for U.S. Access to Data

European Union legislators lashed out Wednesday at a banking consortium and one of its key supervisors, the European Central Bank, which acknowledged that it had known for years that the consortium was giving confidential banking records to United States authorities….(International Herald Tribune, 5 Oct 06)

Dunn, Four Others Charged in Hewlett Surveillance Case

Former Hewlett-Packard Co. chairman Patricia C. Dunn and four others were charged with fraud and conspiracy in California yesterday, one month after HP disclosed that it had conducted a wide-ranging spying operation to identify the source of leaks to the news media…..(Washington Post, 5 Oct 06)

Senate Intel Panel Releases Two Iraq Reports

The Senate Select Committee on Intelligence released two reports Sept. 8 as part of the second phase of its inquiry into pre-war U.S. intelligence concerning Iraq’s suspected chemical, biological, and nuclear weapons programs….(Arms Control, 5 Oct 06)

Return of the chekists

America’s focus on counterterrorism could lead the country to subordinate counterintelligence to a dangerous degree, as it partners with nondemocratic countries that engage in substantial and sophisticated espionage against it…..(C4IS Journal, 4 Oct 06)

Foreign service vet becomes top Africa spy

U.S. Director of National Intelligence John Negroponte has appointed a Foreign Service veteran to be National Intelligence Officer for Africa. A statement from Negroponte's office Wednesday named John Carson to the post on the National Intelligence Council …(UPI, 4 Oct 06)

Court Allows Warrantless Wiretapping During Appeal

The Bush administration can continue its warrantless surveillance program while it appeals a judge's ruling that the program is unconstitutional, a federal appeals court panel ruled Wednesday…(AP, 4 Oct 06)

Privacy Group Files Suit Against FBI

A privacy-advocacy group is suing the U.S. government for records concerning electronic-surveillance tools such as one that appears to be a successor to the FBI's abandoned Carnivore program.…(AP, 4 Oct 06)

Miami Herald Publisher Resigns Due to Government Payments Scandal

…The Miami Herald reported early last month, citing government documents, that 10 South Florida journalists had received thousands of dollars from the federal government for their work on radio and TV programming aimed at undermining Fidel Castro's communist regime….(AP, 4 Oct 06)

China tried to poach supergun inventor

Chinese secret agents have made repeated attempts to poach an Australian scientist behind the invention of a high-speed gun that could revolutionize warfare. The gun with its electronic firing mechanism, called Metal Storm, was invented by Mike O'Dwyer, who is based in Brisbane. He claimed this week that Chinese government agents offered him more than $100 million to move to China and work on the gun….(Telegraph, 4 Oct 06)

Bahrain opposition demands probe into British “spy” allegations
Bahrain’s Shiite-led opposition demanded an independent inquiry Wednesday into the expulsion last month of an alleged British spy who claimed to have uncovered a plot to maintain Sunni domination of the Gulf kingdom….(Agence France-Presse, 4 Oct 06)

Russian spy sues Ottawa for being left out in cold

A former Russian undercover agent who lived under a false name in Toronto and spied for the Russian government is suing Canada's immigration department for refusing to allow her to return here as a landed immigrant….(Globe and Mail, 4 Oct 06)

Romanian Parliament elects two new intelligence chiefs

Romania's Parliament approved two new directors of foreign and domestic intelligence on Wednesday despite concerns by some lawmakers that one of the men is a member of the political opposition….(AP, 4 Oct 06)

German Lawmakers Fault Abduction Probe
More than two years after a German citizen reported being kidnapped in the Balkans by the CIA, several lawmakers here are criticizing prosecutors for not conducting a more aggressive investigation into the bungled counterterrorism operation…..(Washington Post, 4 Oct 0)

Facing a Global Threat With Nonpartisan Clarity

A Life in the Cold War, by Dan Acheson

In 1946, just after fascism had been defeated, America’s leaders found themselves confronted by a whole new global threat, the spread of Soviet-backed Communism….(New York Times, 4 Oct 06)

Iran and Syria advance SIGINT co-operation
Following the signature and ratification of a joint strategic defense co-operation accord in November 2005, Syria and Iran have moved to consolidate their collaborative strategic signals intelligence (SIGINT) capabilities in the region….(Jane’s, 4 Oct 06)

Finance chiefs blame 9/11 for EU bank snoop affair

Belgian financial company SWIFT and the European Central Bank (ECB) have told MEPs they did nothing wrong in a secret deal to send European bank data to the US, with Washington's war on terror putting increasing pressure on EU civil liberties since the 9/11 terrorist attacks….(EU Observer, 4 Oct 06)

Documents detail HP spy squad
Hewlett-Packard scandalous probe of boardroom leaks was a quirky, secret operation run by gung-ho investigators who got plenty of encouragement from HP's top brass, according to new documents released by congressional investigators….(San Francisco Chronicle, 4 Oct 06)

WestJet CEO rides out storm
Revelations that the chairman and CEO of WestJet Airlines was well aware of confidential information from a corporate espionage case that was settled earlier this year were not expected to have a big impact on Canada’s second-largest airline….(Canadian Press, 4 Oct 06)

Have Turkish Agents Penetrated Highest Echelons of US Government?

The Vanity Fair magazine published last year an investigative article alleging that the American Turkish Council (ATC) and the Assembly of Turkish American Associations (ATAA) had conspired, among other things, to make illegal campaign contributions to the Speaker of the House, Dennis Hastert, in return for blocking a congressional resolution on the Armenian Genocide….(California Courier, 3 Oct 06)

Russia Supplied Hezbollah With Intelligence During War
Russia found itself indirectly aiding Hezbollah during the summer's Lebanon war when data collected by Russian-manned listening posts in Syria was transferred to the terror group….(AHN, 3 Oct 06)

PM admits pleading for intelligence on Iraq war

The Prime Minister, John Howard, has acknowledged he was forced to appeal personally to the US President, George Bush, for access to top-level intelligence on Iraq….(Sydney Morning Herald, 3 Oct 06)

Detained officers did work for GRU - former Russian intelligence officer

A former employee of Russian secret services specializing on the Caucasian problems was interviewed by the Moscow-based daily Moskovsky komsomolets (MK). The ex-officer said there were no doubts that the detained Russian officers were staff members of the military intelligence (GRU) of the General Staff….(Kavkaz Center, 3 Oct 06)

HP Security Pro Vowed to Delete Records

A Hewlett-Packard Co. security expert instructed an investigator to make "make absolutely sure" he deleted private phone records of non-HP employees obtained in the company's ill-fated effort to root out the source of boardroom leaks, a series of internal e-mails show….(AP, 3 Oct 06)

Spy on Your Competitors; 10 Tips To Monitoring The Competition

The old adage, "keep your friends close, and your enemies closer", is applicable not only to personal relationships but business relationships as well….(Best Syndication, 3 Oct 06)

Georgia Returns Four Russian Officers

Georgia handed over four Russian military officers it arrested last week on espionage charges to an international mediator Monday, in a move to defuse tension with Russia that has been escalating since the men's detention five days ago…..(Washington Post, 3 Oct 06)

Russia Severs Transport Links With Georgia

….(New York Times, 3 Oct 06)

Russia spurns 'spies' olive branch

Russia stepped up its campaign to isolate Georgia yesterday despite the release of four military officers arrested for alleged espionage….(The Times 3 Oct 06)

Secret intelligence report concludes: America" must accept" a nuclear Iran

…The shattering conclusion was made in a Joint Intelligence Committee (JIC) report to Downing Street last week. It follows the visit by Sir John Scarlett, head of MI6, to John Negroponte, the director of US national intelligence….(Canada Free Press, 3 Oct 06)

Tenet told 9/11 panel that he warned Rice of Al Qaeda

Former CIA director George Tenet told the 9/11 Commission that he had warned of an imminent threat from Al Qaeda in a July 2001 meeting with Condoleezza Rice, adding that he believed Rice took the warning seriously, according to a transcript of the interview and the recollection of a commissioner who was there….(Washington Post, 3 Oct 06)

Rice Denies Book's Assertion She Brushed Off CIA Terror Warning

….(LA Times, 3 Oct 06)

C.I.A. Chief Warned Rice on Al Qaeda

….(New York Times, 3 Oct 06)

US Intelligence Chief Says Estimate Not Assessment of Counter-Terror Efforts

...Director of National Intelligence John Negroponte says the recently revealed National Intelligence Estimate has been misunderstood..."I think it is important to bear in mind that this is not a net assessment of how we are doing in the war on terror," he said….(VOA, 2 Oct 06)

Patent filed for 'Invisible' spy drone

Soldiers will be able to launch an invisible spy drone by throwing it like a Frisbee, according to a recent patent filed in the United States. VeraTech filed the patent Sept. 28 detailing their "Phantom Sentinel" product: The craft looks like a long letter "Y" with a nose making most of its length - slated to be between two and ten feet….(Discovery Channel, 2 Oct 06)

Sutch was a traitor, insists agent who exposed him

The spook who stumbled on the biggest spy scandal in New Zealand history, Kit Bennetts, is as convinced as ever that top civil servant Dr William Sutch was a KGB agen.…(New Zealand Herald, 2 Oct 06)

NSA Linguist Kenneth Crawford

Kenneth Penland Crawford, 86, a retired language analyst and cryptographer for the National Security Agency, died Sept. 26….(Washington Post, 2 Oct 06)

Saddam Spy Allegations Cause Furor Among Iraqi Kurds

A political uproar has erupted in the Kurdistan Region of northern Iraq after newspapers published a list of people accused of spying on fellow Kurds for Saddam Hussein's intelligence service….(VOA, 2 Oct 06)

French spy extradition unlikely

New Zealand is unlikely to seek extradition of a French spy, the brother of the leading Socialist presidential candidate, suspected of involvement in the bombing of the Greenpeace ship Rainbow Warrior….(TV New Zealand, 2 Oct 06)

Georgia releases Russian 'spies'

Four Russian military officers arrested as spies in Georgia in the worst row between the countries in years have been handed over to mediators….(BBC, 2 Oct 06)

Putin and Georgia Officials Intensify Rhetoric in Dispute
Russian President Vladimir Putin accused the Georgian government of "state terrorism with hostage-taking" in a blistering attack Sunday that followed the arrests on espionage charges last week of four Russian military officers in Georgia….(Washington Post, 2 Oct 06)

Corporate Snoops

…Even when a company catches a rival spying, the matter is generally resolved quietly, says John A. Nolan III, chief executive of the Phoenix Consulting Group Inc., a business-intelligence firm in Huntsville, Ala. "The guys who are having their clocks cleaned don't want their shareholders knowing," he says….(Business Week, 2 Oct 06)

Today in History - Oct. 2

In 1780, British spy John Andre was hanged in Tappan, N.Y….(AP, 1 Oct 06)

NZ spycatcher breaks his cover

A former New Zealand secret agent has broken his cover to give Sunday the inside story of New Zealand's biggest spy scandal…..(TVNZ, 1 Oct 06)

The National Geospatial-Intelligence Agency Removes Aeronautical Data from Public Access

The National Geospatial-Intelligence Agency (NGA) has removed its Flight Information Publications (FLIP), the electronic Chart Updating Manual (eCHUM), and Digital Aeronautical Flight Information File (DAFIFTM) from public access….(Geospatial, 1 Oct 06)

The Leaker in Chief

Last week, one of Washington's favorite spectator sports — the secrecy game — reached new heights of absurdity. Americans were treated to the spectacle of an administration obsessed with secrecy turning around and declassifying parts of one of the most highly secret documents produced by the CIA and other U.S. intelligence agencies…(LA Times, 1 Oct 06)

The Watchdog

All Governments Lie, by Myra MacPherson

…MacPherson informs us that (Oleg) Kalugin, having specified that Stone was never on the Soviet payroll, described Stone as a “fellow traveler” — meaning a friendly supporter of the Soviet cause, though not a disciplined member of any Communist organization….(New York Times, 1 Oct 06)