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Weekly Intelligence Notes
21 April 2000

WINs contain intelligence news items and commentaries produced by Roy Jonkers for AFIO members and subscribers. Associate editors Harvey and Macartney provided most of the material in this WIN.

WINs are protected by copyright laws and may not be reproduced except with the permission of the producer/editor 

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.

It has now been revealed that the laptop computer missing from the State Department conference room where it was routinely kept, contained thousands of classified documents about arms proliferation, including 'codeword' (SCI) material. The laptop vanished in January, was reported to the Bureau of Diplomatic Security (and CIA) in early February. In late April State Department officials still said "they still hope to recover the laptop" if it was taken simply for the value of the computer hardware. [No one quoted what the Vegas odds would be on that happening.]
Within State, the Bureau of Diplomatic Security handles the lower levels of classification, while the Bureau of Intelligence and Research (INR) handles SCI or "code word" documents. Reportedly the Secretary is considering transferring SCI responsibility to Diplomatic Security. Hearings by the House International Relations Committee have been promised on why intelligence on the spread of missile technology and nuclear, chemical and biological weapons was stored in a portable laptop instead of a fixed desktop computer. CI expert Paul Redmond is mentioned to lead an investigation (NOTE - he is on the agenda for the AFIO 19 May Business CI Conference)
One State official told the press the laptop was used instead of a desktop so that different people with clearances could use the computer and access its information without having to switch chairs. Reportedly, an official had propped open the door of the secure conference room, that numerous contractors lacking security clearances were working in the sensitive area, that the contractors were not properly escorted, and that the laptop had not been properly secured..
The laptop disappearance is only the latest in a string of State security breaches. In 1998, a man walked into an executive secretary's office six doors down from Secretary Albright's office, helped himself to a sheaf of classified briefing materials in plain view of two secretaries, and then departed unscathed never to be seen again. Then in late 1999, the FBI picked up the Russian intelligence operative (albeit a not very clever one) monitoring a bug in one of State's sixth floor conference rooms from a parking space nearby. It is not yet known how much damage the bug did during the time (known to have been at least several months) it is was functioning as part of a chair rail nor has there been a report of how the bug was placed.
A State inspector general's report completed last September after being ordered by Congress reported the department has about 350 contractors, most of them uncleared, working inside the headquarters. At that time, 140 offices that receive SCI material had not yet been inspected, upgraded and certified as SCI facilities. From 1995 to 1998, 53 cases in which employees were suspected of unauthorized disclosure were referred to the FBI. None resulted in prosecution even though some employees admitted inappropriate and deliberate release of classified information to unauthorized persons. In 1998, the department reported 1,673 incidents involving the mishandling of classified documents -- and 218 employees were cited after each was involved in four incidents, but none was dismissed. It is difficult to avoid the impression the State Department as an organization is not taking security seriously. Stand by - More to follow. (Washington Post 17 Jan '00, A1; Washington Post 22 Apr '00, p. A01) (Harvey)

The DCI testified recently before the Senate Foreign Relations Committee on the intelligence community views on the proliferation of weapons of mass destruction (WMD) throughout the world. His views have been reported on the various wire services but certain of those statements warrant repeating. Extracts are:
--- A number of supranational terrorist organizations were seeking to procure or develop chemical and biological weapons.
--- "About a dozen states, including several hostile to Western democracies, Iran, Iraq, Libya, North Korea and Syria, now either possess or are actively pursuing offensive biological and chemical capabilities."
--- Regarding several instances in which terrorists have contemplated using biological or chemical weapons, "Among them is bin Laden, who has shown a strong interest in chemical weapons. His operatives have trained to conduct attacks with toxic chemicals or biological toxins."
--- "Iran, acquiring the ability to domestically produce raw materials and the equipment to support indigenous biological agent production."
--- Efforts to halt proliferation of weapons are complicated because most programs to make WMD are based on technologies that have dual use, i. e. can be used for civilian as well as military applications.
--- On nuclear weapon proliferation, the US has identified more than 50 states "that are of concern as suppliers, conduits, or potential proliferators."
--- There is no evidence that any fissile materials have actually been acquired by a terrorist organization.
--- "As alarming as the long-range missile threat is, it should not overshadow the immediacy and seriousness of the threat that US forces, interests and allies already face from short and medium-range missiles."
--- "The Chinese do proliferate, though supplying only components of missile systems. They no longer, to the degree we can detect it, proliferate whole missile systems, turn key operations, as they once did."
--- Citing the rapid spread of new technologies and a greater ability to deceive the world on the part of countries that spread WMD, "More than ever, we risk substantial surprise. This is not for lack of effort on the part of the intelligence community. It results from significant effort on the part of proliferators."
( AFP 21 Mar'00 from Washington; AP 21 Mar '00, by Pauline Jelinek; Reuter 21 Mar '00 by Tabassum Zakaria; The Times of India 24 Mar '00 (Harvey)


US SPYING PAYS OFF FOR AMERICAN BUSINESS. An MSNBC report that will further stir up the "Echelon" frenzy in Europe, says that US businesses "gained
billions" with the help of US govt intelligence. A close reading of the MSNBC report shows that all the cases, most of which were previously revealed in Congressional testimony, involve US intelligence detecting foreign firms trying to beat out American firms for 3rd country business by bribery. When such was discovered, that intelligence was used (usually via a State Dept demarche) to "level the playing field," to the benefit of the US firm.  (Macartney)

CIA CHARGED WITH ANTI-SEMITISM. In his "Media Notes" column in the Washington Post (3/27) Howard Kurtz took issue with a CIA lawyer who claims he was fired because he was Jewish. Kurtz wrote: "Another "60 Minutes" report last month featured Adam Ciralsky, a CIA lawyer who was stripped of his security clearance and who charged that this was related to his being Jewish. Saralsky (sic) has now been hired by a CBS unit that does work for "60 Minutes" and correspondent Ed Bradley. Coincidence? Network insiders notes that Saralsky (sic) is marrying the relative of an executive in the CBS unit."
Ciralsky or Saralsky's piece on 60 Minutes came through as a piece of real puffery and exploitative claptrap. He apparently was hired by John Deutch. At that time the DDO was also jewish. Were they anti-Semitic? (Wpost 27 March 00) (Macartney)

ALLEGED US SPY CHARGED. According to Reuters, Ed Pope, the American businessman and retired Naval officer under arrest for espionage in Russia, was seeking info on an "undersea guided missile." Pope is being held in Moscow's Lefortovo prison and has received visits from US diplomats, but the US Embassy will not comment on the case. (Reuters) (Macartney)

RUSSIAN VIRUS INFECTS UK COMPUTERS -- Ahead of Vladimir Putin's visit to London, Russian hackers decided to familiarize the British prime Minister, Tony Blair, with Russian folklore. A virus of Russian origin recently infected all the computers at 10 Downing Street, according to the Russian newspaper "Russia Today" and the ZDNet news agency. The presence of the virus was supposedly revealed by the fact that proverbs and sayings such as "He who shoots last laughs longest" and "Don't leave until tomorrow what you can drink today" began to appear on the screens of the infected computers.
(Ron Levine, (Jonkers)

GLOBAL ENCRYPTION REGULATION - Efforts by governments to regulate encryption have largely been defeated, for three reasons: political action; a realization that it was becoming increasingly impossible to enforce encryption controls; and most of all because of the rise of electronic commerce. The third annual report on the worldwide state of encryption, issued earlier this month by EPIC, the Electronic Privacy Information Center in Washington DC, documents the relaxations that have occurred, and gives a very interesting review of encryption regulation. 
(Ron Levine, (Jonkers)

BRITISH GOVERNMENT LEGISLATION ON INTERNET BUGGING -- A prospective new law opens up private data to MI5 scrutiny. Users attending the fifth 'Scrambling for Safety' conference recently were in for a shock when they gathered in London to debate the UK government's draft legislation on bugging communications. Ministers told them in no uncertain terms that if the Regulation of Investigatory Powers (RIP) Bill is passed, third-party service providers will be obliged to allow policemen and spooks such as MI5 access to their clients' communications. And their clients will never know about it. 
(L. Sulc / Levine (Jonkers)

BRITISH MI-5 REQUEST CLOSES DOWN US WEBSITES. Two US websites, one on and another on Geocities, have been shut off at the request of MI-5, because of compromising information contained on them. The third site, reachable at  &  has refused to take the documents down. All this relates to David Shayler, the former MI-5 officer living "in exile" in Paris, who has released information about alleged UK assassinations and such. This whole affair is starting to raise an e-mail brouhaha over freedom of speech because British MI5 succeeded in getting two of three American websites to shut down.  (Macartney)


AREA FIFTY-ONE -- Satellite images of the super secret Groom Lake AFB, known to UFO and X-Files fans as "Area 51," have been posted on the internet. The images show
runways, buildings and vehicles -- but no aliens or flying saucers. The web site has been swamped.

THE HISTORY OF ESPIONAGE. This web page amounts to (free) encyclopedia of
intelligence -- look up names, events, agencies, etc, alphabetically. ( 

REMOTE VIEWING SECRETS - A HANDBOOK,by Joseph McMoneagle, anno 2000, Hampton Roads Press, $14.95. A former U.S. Army officer working in INSCOM and the remote-viewing program known as STARGATE. (BOOKS From INT, n. 112 7,

APRIL 12: NSA legal authority, "Echelon," etc
APR 5&12, MAR 29: Dr Peter Lee espionage case
FEB 2: Worldwide Threat in 2000 

STUDIES IN INTELLIGENCE. The CIA's Center for the Study of Intelligence (CSI) has posted the Winter 1999-2000 issue of Studies in Intelligence. HIGHLY

SPIES AND SECRECY IN AN OPEN WORLD, by Robert Steele, AFCEA International Press, April 2000, 495pp. Foreword by Senator David Boren (D-OK), former Chairman of the Senate Intelligence committee. Includes a 75 page annotated bibliography plus a 60 page index. Lots of info.

VIETNAM RETROSPECTIVE. The LA Times is running a series on the lessons and
legacies of Vietnam. 

CIA OFFICER IN RESIDENCE PROGRAM. An interesting article in the 4/18 Washington Post reports on CIA officers who have been dispatched to colleges and
universities to teach -- usually about intelligence. It also mentions the 200 or more other courses on intelligence being taught around the country -- many by retired US intelligence officers. The article did not mention the many former intelligence officers who, like their brethren in academia, have become journalists. Not surprising since intelligence officers, professors and journalists are all in the knowledge, or information, business. Too bad that the article, like so many press reports, consistently misused the term "CIA agent." AFIO still has work to do.  (Macartney)

OVERTHROW OF IRAN'S MOSSADEGH. In a long, long article in the April 16 NY Times, James Risen, reports on a "recently surfaced" internal CIA historical document about the 1953 covert action. Not much is new, as far as I could tell. Of note is that the coup started out as a failure and the Iranian general who led it went into hiding and the Shah fled the country while the CIA was about to close up shop and evacuate its station, when two of the CIA's Iranian agents took it upon themselves to go out into the streets, attract crowds and reverse the outcome. 

CIA'S IN-Q-TEL. An article in the April 10 NEWSWEEK provides more detail about the CIA's Silicon Valley initiative. Among other things, it says that after original funding of $28 million, In-Q-Tel," is supposed to finance itself through investments of seed money in promising new technologies. If those investments return more than In-Q-Tel needs to keep going, those funds would revert to the US Treasury. 

This interesting website seems to be operated by a bunch of ham radio enthusiasts who have made a study of guerrilla radio stations around the world and who conduct and publish technical studies of the stations - where they broadcast from, times of transmissions, etc. In one instance, German, Ukrainian and Americans (working from Indonesia) tracked down an Azerbaijani radio transmitter beaming propaganda to the ethnic Azeri population of Northern Iran and located the transmitter as being in Israel.  (Macartney)


INTERNATIONAL TRAFFICKING IN WOMEN TO THE US. Also just posted on the CSI webpage is an 80 page report on trafficking of foreign women and children for the sex industry in this country. 

JOINT INTELLIGENCE DOCTRINE. Joint Pub 2-0, "Doctrine for Intelligence Support to Joint Operations," 9 March 2000--84 pages (648k) in PDF format. No time yet to study this unclassified JCS document. The Executive Summary is not very illuminating, but glossary is very good, and useful. Also, Appendix A, "Intelligence in Multinational Operations," is good and one of the few things written anywhere on this increasingly common and perplexing intelligence problem. 


COLD WAR INTERNATIONAL HISTORY PROJECT (CWIHP). This Wilson Center project offers a goldmine in Cold War history documents, publications and conferences. Much from Soviet files and related to intelligence. When you visit their site,
be sure to click on "Virtual Archive" and "Publications" at the bottom. Also, note that you can sign up to be on their mailing list. 

TEST ANSWERS. Loeb provided answers to the intelligence knowledge exam he posted in his April 3rd column (see last WIN). He reports that several respondents got perfect scores: Angela R. McDonald, a student at DIA's Joint Military Intelligence College; John F. Beck, of Colorado Springs, Colo; Eric Jacobs; Bernard M. Owens Jr; and Eric Behrns, at Georgetown University.  (Macartney)

NSF CYBER SCHOLARSHIPS -- The National Science Foundation is expected to release applications next month for grants that would fund the Federal Cyber Services program designed to train the next generation of digital defenders. The NSF grants would be available to colleges and universities, which would use the money to award scholarships to students to study information assurance. These students would receive the scholarships in exchange for full-time employment with a federal agency upon graduation. The students would help protect the government's systems from cyberattack -- a virtual "cytbercorps." .  (Jonkers)

REMEMBER the 19 May AFIO National "Business Intelligence, Counterintelligence & the Law" Symposium.
Outstanding speakers, moderate cost (65% tax-deductible), interesting locale (the Reagan Building in downtown Washington DC).
Note that AFIO member PAUL REDMOND, former CIA CI Chief, now retained to lead an investigation of the State Department security mess, will be one of the speakers!
If you cannot attend, help spread the word -- DISTRIBUTE the announcement below to your email lists. Check the AFIO Website for details:

AFIO will conduct the second annual one-day "Business Intelligence, Counterintelligence and Law" Symposium on May 19th at the Ronald Reagan Building -- The International Trade Center, 1300 Pennsylvania Ave. NW, Washington DC. A superb cast of speakers will discuss issues of business espionage, counterintelligence, and security protection.
This will be a small, select conference allowing in-depth personal interaction with experts on critically important topics. The Symposium will be chaired by AFIO Board Member Tom Spencer, Esq. 
The "Who's Who" list of speakers includes Theodore Shackley, Paul Redmond, John Quinn, Richard Horowitz, Fred Rustmann and A. Pappas (FBI). Topics include assessments of the threat to American business and industry and practical methods and techniques for combating these threats.
The conference fee is $125. Register by sending name, title/ organization, address, tel/fax/email, and a check made out to "AFIO" to: AFIO, 6723 Whittier Ave, Ste 303A, McLean, VA 22101-4533.

Check also the PCIC Website for the intelligence job fair symposium "PCIC 2000 Career Expo (Job Fair) for Intelligence Professionals" May 18, 2000. 

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