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Weekly Intelligence Notes
17 March 2000

WINs are produced by Roy Jonkers for AFIO members and subscribers. WINs are protected by copyright laws and may not be reproduced except with the permission of the producer/editor  afio@afio.com 

Warning Notice: Perishability of Links:  WINs, sent weekly to members, often contain numerous webpage links to fast-breaking news, documents or other items of interest; unfortunately, after four weeks many of these websites [especially newspaper and other media sites] remove items or shift them into fee-only archives.  This underscores the benefit of receiving the WINs as they are released.
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SECTION I – CURRENT INTELLIGENCE
INTERNET LAW ENFORCEMENT
- Attorney General Janet Reno recently said that Law Enforcement was ill-prepared for cybercrime, and is generally out-gunned.. They need weapons such as real-time tracking of Internet users, the ability to locate wireless phones, and the ability to identify anonymous e-mailers to better catch Internet criminals . A lengthy report released 9 March reiterated the complexities of Internet law enforcement. As massive volumes of business and financial transactions shift to the Net, previous pranks and spoofs which allowed unfettered anonymity, now permit anonymous cybercriminals to operate across international borders, to strike and vanish in an instant. Reno wants to strike back with better coordination among local, national and international police and -- most important -- greater assistance from the Internet industry. The Administration realizes it will need to proceed cautiously, obtaining more advice from industry and privacy groups before proposing specific legislation. Especially in this high-tech environment where capabilities grow and change weekly. In the next two months, the Justice Department will hold an East Coast and a West Coast conference with industry and privacy groups to discuss prospective legislation.
http://www.sjmercury.com/svtech/news/breaking/ap/docs/302157l.htm
http://www.fcw.com/fcw/articles/2000/0306/web-1reno-03-10-00.asp
(RLevine@ix.netcom.com) (Jonkers)

CIA TO HONOR FIRED AGENT. Terry Ward, 62, former chief of the Latin American Division, received a prestigious award March 23 for "exceptional achievements" during a 30-year covert career despite his dismissal for failing to report on CIA ties to a Guatemalan colonel linked to two murders in the early 1990s. One senior intelligence official said Ward's medal was recommended by former colleagues within the CIA's Directorate of Operations and personally approved "without hesitation" by James Pavitt, the CIA's deputy director for operations, even though the award was sure to be controversial. The honoring of Ward illustrates the continuing and bitter divide between CIA career professionals and their critics in Congress and the human rights community over the Agency's performance in the Cold War conflicts of Latin America. The effort to rehabilitate Ward's reputation comes at a time when the man who fired him, former CIA director John Deutch, finds himself under investigation by the Justice Department for serious home computer security violations.
http://washingtonpost.com/wp-dyn/articles/A44040-2000Mar9.html

FORMER DCI RESPONDS TO EUROPE'S ECHELON HYSTERIA.
Speaking to a crowd of foreign journalists, former DCI James Woolsey confirmed that US intelligence does indeed collect against economic targets. But Woolsey pointed out that the major focus of such espionage was smuggling, bribery and other examples of cheating in the marketplace and that the US government, not US firms, is the consumer of such intelligence.
http://www.heise.de/tp/deutsch/special/ech/6662/1.html

NSA'S TROUBLES. An article in the LA Times discusses NSA's four day "blackout" in late January when the agency's computers crashed, and reviews the various NSA problems highlighted by Seymour Hersh in his December 6 NEW YORKER article. This LA Times piece also delves into the reforms underway at Ft Meade claiming that the new Jimmy Carter submarine will be able to intercept underwater fiber optic cables and that a new constellation of SIGINT satellites is coming. Each Monday, according to the Times, the Director of NSA (DIRNSA), LtGen. Michael Hayden, does a 15-minute closed-circuit TV show for NSA employees. He has discussed his testimony on Capitol Hill, done a stand-up in the NSA operations center and phoned in from Europe. He also sends out a classified e-mail message daily to NSA workers around the world. Recent "DIRGRAMS," as the director's messages are known, have explained how a new "transformation office" will oversee modernization and have sought feedback on a new strategic plan..
http://www.latimes.com/news/nation/updates/lat_nsa000313.htm

SHOWBIZ PUTS PUTIN IN KGB. A hit movie of 1968 set a teenager named Vladimir Putin on the road to his career as a KGB officer according to Mr. Putin, now Russia's acting president. The movie, "The Sword and the Shield," depicted the heroic deeds of a Soviet double agent in Nazi Germany.
http://www.nytimes.com/library/world/europe/031100russia-putin.html

JOB APPLICANTS SUE OVER POLYGRAPH TESTS. Darryn Mitchell Moore had 12 years of experience with the Atlanta police department when he applied for a job with the Secret Service. Everything seemed on course, he said, until he sat down last fall for the Agency's prerequisite polygraph examination. Wired to the machine, Moore apprehensively answered "yes" or "no" to a series of questions, including one in which he denied past drug use. According to Moore, the examiner repeatedly accused him of lying. Moore, who insists he never used illegal drugs, said he became rattled and was told he flunked the test. On March 14, Moore plans to join six other spurned job applicants in filing a lawsuit challenging the use of polygraphs by the Secret Service, FBI and Drug Enforcement Administration. It contends the pre-employment practice violates their constitutional rights to due process, attacks the science behind it, and charges that examiners act abusively toward applicants. The lawsuit, to be filed in U.S. District Court in Atlanta, rekindles decades of debate about the reliability of polygraph testing. Congress passed legislation in 1988 that prohibited private industry from using polygraph examinations to screen job applicants. But the law carved out an exception for the federal government, and the Secret Service, FBI and DEA are among many agencies using them.
http://washingtonpost.com/wp-dyn/articles/A10943-2000Mar14.html

CHINESE ESPIONAGE REPORT AND PARTISAN POLITICS. A new joint CIA/FBI "Report to Congress on Chinese Espionage Activities Against the United States" provides an unclassified summary of Chinese intelligence activities. The report, dated December 12, 1999 and reported in the Washington Times on March 9, is posted at http://www.fas.org/irp/threat/fis/prc_1999.html
Now, Senator Arlen Specter has issued his new "Report on the Investigation of Espionage Allegations Against Dr. Wen Ho Lee" which criticizes the Justice Department and the FBI for errors and omissions in that investigation. A copy of that 65 page report, dated March 8, is posted at
http://www.fas.org/irp/congress/2000_rpt/specter.html
Meanwhile, Senator Charles Grassley has written Senator Spector to express dissatisfaction with the new report, saying that "it does not reflect the full body of evidence." The March 8 Grassley letter, first reported in the Washington Post, is posted at http://www.fas.org/irp/congress/2000_cr/s030800.html

MORTON SOBELL SAYS HE WILL SUE NSA OVER DECRYPTION METHODOLOGY. In a letter to the editors of the Wall Street Journal (Mar9), Morton Sobell, who in 1951 was convicted with Ethel and Julius Rosenberg of "conspiracy to commit espionage," challenges the veracity of the Venona decrypts. Sobell served more than 18 years in prison for espionage.
http://cryptome.org/nsa-sobell.htm

SECTION II:  CONTEXT AND PRECEDENCE

DCI Comments on His Job
A recent interview with DCI George Tenet by Reuters yielded a few tidbits:
-- Worst moment on the job was a phone call in August 1998 telling him two US embassies had been blown up in Africa with many people dead.
-- Heightened fear of terrorist plots just before the millennium celebrations at the end of last year was the scariest time.
-- 1997 capture of Mir Amal Kansi in Pakistan for killing two CIA employees was his high point.
-- Most fun is when his spies steal valuable secrets that give the president new information.
-- "There is fun in understanding that you've just stolen a secret that makes a difference to what the president thinks (sic) about something."
-- When traveling about Washington, he prefers a dark, armored sport utility vehicle to the agency limousine.
-- Speaking of CIA employees, he said: "People don't understand that these people are enormously talented, very dedicated, and will go through that wall for you if you ask them to." He was not quoted saying anything about people in the other 12 Agencies of the community.
Ü Regarding the Deutch scandal, he said: " We're looking at all that. I cannot tell you that it was compromised, I can provide you no assurances that it was not compromised." He apparently was not asked why the investigations are still ongoing three years after Deutch's security transgressions became known to CIA.
Ü With reference to DCI Tenet's handling of the Deutch affair, the Chairman of the HPSCI, Porter Goss, has said: "My personal view is he (Tenet) did a credible job of managing a very nasty, tricky situation. I won't say he couldn't have done some things better in hindsight."
Ü Addressing the favorite Washington practice of blaming intelligence when things do not go just the way people would have preferred, the DCI said: "You take risks every day, sometimes you guess right, sometimes you guess wrong, and when you guess wrong everybody says you're an idiot. Well...we know we're not idiots, we know we're doing a good job." Source: Reuters 3 Mar '00;
http://dailynews.yahoo.com/h/nm/20000303/ts/cia-leadall-1.html (Harvey)

WHAT IF THE BAD GUYS CAPTURE A SOLDIER'S COMPUTER? In his Washington Post on-line column, "Dot.Mil," Bill Arkin writes about the number of laptop and Palm Pilot computers that are being issued to military, including front line troops. Presumably by capturing one of these many devices an enemy would have instant access to almost everything—our plans, our strength and disposition, intelligence info, etc. Arkin is critical of the trend. "Beyond the question of waste though, there is the matter of practicality. Proliferation of personal devices ensure better communication, record keeping, and access to information. But when systems fail, will military people still know the skills to use the old grease pencil? I for one have been writing with a word processor for almost 20 years, and frankly I've lost my ability to write anything beyond a grocery list in long hand. Isn't war too important to be left to the laptop," he writes?
http://www.washingtonpost.com/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=wpni/print&articleid=A52710-2000Mar10

NATO SPY ALLEGATIONS DENIED. NATO is rejecting a US report that a spy in its ranks may have given the Serbs secret details of its 1999 bombing raids on Yugoslavia — but NATO sources said an internal U.S. study had pointed to a possible information leak.
http://www.abcnews.go.com/sections/world/DailyNews/nato000309.html

LOSS OF CANAL ZONE BASES HURTS DRUG INTERDICTION. Previously, some 2000 AWACS and other surveillance flights a year used Howard AFB in the Canal Zone to surveil cocaine producing regions of Latin America. Now those flights are down by two-thirds. Meanwhile, the US has announced it will deploy two more intelligence aircraft to the area, a Cessna Grand Caravan and a British J31 Jetstream. Both have been specially modified for observation and intelligence-gathering missions.
http://www.washingtonpost.com/wp-dyn/articles/A61658-2000Mar12.html

BIN LADEN CAPTURE THAT NEVER WAS. A CIA plan to train and equip a secret Pakistani unit to snatch alleged terrorist Osama Bin Laden from his Afghanistan hideout never got off the ground last year because of foot-dragging by Pakistan, probably on purpose. (Time, March 20)

SECTION III:  BOOKS, REVIEWS, & OTHER SOURCES

JOINT MILITARY INTELLIGENCE COLLEGE BOOK ON COMPETITIVE INTELLIGENCE --
INTELLIGENCE ESSENTIALS FOR EVERYONE,
a new book from the DIA's JMIC, is available for sale from the Superintendent of Documents. It lays out for businesses world-wide, in clear, concise language, a logical approach to creating an intelligence infrastructure that is much like the governments.. AFIO member and Mercyhurst College professor, Bob Hiebel, says “We use it in our Intro to Research and Analysis class. It's well written and designed by an NSA analyst and JMIC graduate to reach across the lines of national security and competitive intelligence.” It may be ordered from GPO at 202-512-1800, or http://www.access.gpo.gov/su_docs/sale.html.

FORTHCOMING or JUST RELEASED BOOKS -- (Elizabeth Bancroft)
[All the following can be pre-ordered today from amazon.com or barnes&noble.com].

THE BOOK OF HONOR: Covert Lives & Classified Deaths at the CIA by Ted Gup, Doubleday/Random House, May 16, $25.95. Gup reveals the identity of 41 CIA Officers who died in the line of duty and have, for many years, been known only as unidentified stars on the lobby wall at CIA. Based on extensive research and interviews, Gup describes the tragic stories of long-denied operations gone bad or ones that experienced unintended consequences, and a new variety of Agency operations where these heroic officers gave the ultimate in the service of this country.

SPYTIME: The Undoing of James Jesus Angleton by William F. Buckley, Jr., Harcourt Brace, July 2000, $25. Buckley gives his take on the rise and fall of legendary spymaster and Yale classmate JA.

THE CULTURAL COLD WAR: The CIA and the World of Arts and Letters, by Frances Stonor Saunders, The New Press, April 2000, $29.95.

CREATING THE SECRET STATE: The Origins of the Central Intelligence Agency, 1943-1947, by David F. Rudgers, University Press of Kansas, June 2000, $35.00.

RED MAFIYA: How The Russian Mob Is Infiltrating America, by Robert I. Friedman, Little Brown, March 2000, $25.95. Expose of the growing infiltration of Russian organized crime in the U.S. and rest of world.

BROADCASTING FREEDOM: The Cold War Triumph of Radio Free Europe and Radio Liberty, by Arch Puddington, University Press of Kentucky, May 2000, $27.50. A history of the radio organizations and the role RFE/RL played as the Berlin Wall collapsed and the Soviet Union dissolved.

INTELLIGENCE FORUM:. The Intelligence Forum is a private, not-for-profit organization that maintains a free electronic bulletin board dedicated to the scholarly discussion and study of intelligence. Intelligence Forum seeks to facilitate research on intelligence by updating scholars on new archival sources, evolving declassification policies, and recent publications. SPONSOR. Intelligence Forum is sponsored by the Frank Cass journal, "Intelligence and National Security," http://www.frankcass.com/jnls/ins.htm TO JOIN, please send an E-mail to majordomo@afio.com and put "subscribe intelforum" in the message body. For more information about Intelligence Forum, please visit our website at http://www.intelforum.org (Macartney)

NOVEL ITEM OF THE WEEK:
KGB 'Fotosniper' Cameras Among 200 New Treasures From U.S. Sovietski Collection
A rifle-like spy camera – called a “Fotosniper” – purportedly used by the KGB, is one of 200 artifacts or replicas available by catalog from the Sovietski Collection, a U.S. firm started in 1992. Other objects of intelligence artifact interest are Russian Navy SEALs' “Desantnik” diving helmets, and silk men’s neckties, decorated with vintage Soviet propaganda art. The Sovietski Collection's free 72-page Spring 2000 catalog is available from 800-442-0002 (619-294-2008 or Fax 619-294-2500) or click over to http://www.sovietski.com (Reuters and other News Sources, March 13)

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