Weekly Intelligence Notes #34-00
25 August 2000

WEEKLY INTELLIGENCE NOTES (WIN) #34-00 dtd 25 August 2000

WINs are produced by Roy Jonkers for AFIO members and subscribers.
Don Harvey and John Macartney contribute articles to the WINs.

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.

AFIO CONVENTION -- See Note at end of this WIN (Section VI) for NEW hotel information. Also Check www.afio.com




ERRANT MI5 "SPY" RETURNS TO BRITAIN -- David Shayler, 34, a renegade member of MI5, the British internal security organization, was arrested when he set foot on British soil last Monday. Shayler, who worked for MI5, Britain's internal security agency from 1994 until 1997, fled to France after selling stories about British intelligence to a British newspaper. This included sensationalized claims that two officers from Britain's external intelligence service, MI6, had been involved in a plot to assassinate Libyan leader Moammar Gadhafi; that the agency had kept files on a number of 'radical' politicians, including Jack Straw, the current home secretary, and Peter Mandelson, now the Northern Ireland secretary; that MI5 disregarded a warning of an attack on the Israeli Embassy; and that MI5 failed in proper surveillance of the IRA, which resulted in a bomb attack killing one person.
In France Shayler spent four months in Paris' La Sante prison in 1998 after being arrested on a British warrant for breaking the Official Secrets Act. Now that he has returned voluntarily Shayler likely will face two charges of leaking information to the press in breach of the Official Secrets Act, which could earn him a jail sentence of up to four years. Interestingly in terms of new ways to go after these types of offences, the British government filed a separate civil suit filed last December, accusing Shayler of breach of copyright and breach of contract for releasing secret documents.
For his part, Shayler thinks he can avoid criminal prosecution by insisting that the government reveal classified documentation in any trial [a legal technique often termed "graymail"]. "In those circumstances, I think the government will drop the prosecution." Furthermore, since Britain has now subscribed to the new European Human Rights laws, Shayler hopes to take advantage of this as well. "It's absolute nonsense that in this day and age in Britain we have a law which makes it a crime to report a crime." The case of this renegade involves interesting notions, motivations and legal maneuvering. (AP-ES-08-21-00 0835EDT // S.Leeman) http://ap.tbo.com/ap/breaking/MGIY9Y746CC.html (Jonkers)

FATHER DISINHERITS SON FOR WORKING FOR U.S. AGAINST BIN LADEN -- In an unusual case, a man in Pakistan's Malakand tribal agency publicly disinherited his son after accusing him of assisting the Americans to capture Osama bin Laden.
Shahzad Gul paid for a big advertisement in the small Urdu daily Azadi (Freedom) to announce that he had disinherited his son, Hussain Gul. The ad provides the reason: "The government of the Islamic Emirate of Afghanistan has announced a substantial monetary reward for anyone who can help them arrest my son Hussain Gul. In his place, the Taliban have taken away my younger son, Deedar Gul, who is barely 19," announced the worried father in his strange advertisement. He publicly assured the Taliban that he would hand over his son Hussain in case he was able to locate him. He also declared that he would not be responsible for any act by Hussain in future.
Bin Laden has become a cult figure in Malakand, Dargai, an area north of Peshawar. Many people there consider him a 'hero of Islam' for standing up to the U.S. A growing number of couples there have named their sons Osama, after the Saudi-born Osama bin Laden, and scores of small businesses also carry the name.
(ABCNEWS.com/ Magellan Geographix 21 Aug00// Rahimullah Yusufzai)

AWOL U.S. INTELLIGENCE OFFICER LOCATED IN ISRAEL -- Lt. Colonel Jeremiah Matysse, a U.S. Army Reserve officer in military intelligence who failed to report to duty at his base in San Antonio on Aug. 8th has been located in southern Israel. Matysse who in his youth changed his name, converted to Judaism some ten years ago. His wife is divorcing him and some press reports indicate that his alleged Israeli paramour said he had provided information to Israel. Matysse denied he was a spy. "I didn't give any classified information to anyone." He said he had not decided yet how long he would stay in Israel. As a Jew, he would be eligible for automatic citizenship. Israel has no provision for arresting someone who deserts from a foreign army.
Until February, Matysse commanded the Army Reserve Intelligence Support Center at Camp Bullis in San Antonio as a full-time reserve officer. After an investigation began into his wife's allegations that he was having an extramarital affair, he was reassigned to the 90th Reserve Support Group in San Antonio. American military intelligence officials were said to be especially concerned about Lt. Colonel Matysse's apparent desertion because of his background in intelligence. Divorce is an ubiquitous indicator of personal stress and trouble that may affect moral judgments and a warning flag for CI and security concerns. (NYT, 22 Aug00, p. A8; AP-ES-08-21-00 1011EDT) http://ap.tbo.com/ap/breaking/MGI1XJO76CC.html (Jonkers)

TERRORISTS ARRESTED -- Israeli and Palestinian security agents have uncovered various Islamic terror networks and arrested 23 people. Most of those arrested belonged to Hamas, Islamic Jihad, and al Qaeda, the extremist international Islamic movement led by Osama bin Laden. According to a senior Israeli security source, they planned to carry out a number of attacks, some by remote-controlled bombs and others by suicide bombers. The aim was to disrupt the negotiations between Israel and its subject Palestinian population of the occupied territories represented by Yasser Arafat, known in popular parlance as the "peace process." The arrests took place over the past few months and were praised by Prime Minister Barak. In the past, such attacks, timed to disrupt negotiations, have served both Islamic and Israeli extremists.
It was not immediately clear if the suspected terrorist arrests were linked to a US State Department travel advisory, warning US citizens to avoid the area due to feared terrorist attacks. Israel initially scoffed at the advisory, but yesterday Deputy Defense Minister Ephraim Sneh said there was reason for an increased alert. "We are glad that our security services and the Palestinians have foiled them. That is the truth," Sneh told Army Radio. (Jerusalem Post, 22Aug00 p.1// Arieh O'Sullivan) (Jonkers)


A recently released report (congressionally mandated) on the DoD's "Defense Information Assurance Program" indicates that in 1999 the DIA tripled its staff (from 8 to 24) to improve its ability to conduct penetration testing and vulnerability analysis of the estimated 8,000 Defense Department information systems. DIA reported it is "implementing an intrusion detection system to monitor its classified networks," and upgrading its unclassified infrastructure to enable "a single point of entry/exit via protected firewalls and other Information Assurance safeguards."
Meanwhile, in another aspect of information protection, the George Washington University's National Security Archive protested Senate action to exempt DIA 'operational files' from FOIA, calling DIA's claim that these files were so highly classified they were always exempt from release as undermining DIA's FOIA credibility.
In the course of this protest, the GW Security Archive referenced a recent Army report indicating that 87% of DIA's HUMINT came from overt collection, and only 13% from clandestine sources. DIA also received a back-handed kudo from the GW Security Archive for developing "one of the most professional and responsible FOIA shops in the government." But they concluded that the Senate action would damage the credibility of DIA's FOIA position and the entire security system. It may be conjectured that it is not always clear whether our intelligence agencies exist to keep matters of government discrete, or whether they exist to support research papers and feed authors -- at least in the minds of some. (Defense Information and Electronics Report 23 Jun '00, p. 1; Washington Post 19 Jul '00, p. 23( (Harvey/Jonkers)


CANADA PROBES FOREIGN COMPUTER SPYING -- Canadian police said Friday they were investigating allegations that unknown agents had used rigged computer software to hack into Canada's top secret intelligence files and thereby endanger national security. The Toronto Star said police were probing whether Israeli and U.S. spies were making use of a so-called software ``trap door'' allowing them to access files used by the Mounties and Canada's spy service to co-ordinate secret investigations. Police spokesman Sergeant Mike Gaudet confirmed that a probe was underway but gave few details. "We are conducting an investigation. To date we have no indications that national security has been breached. Our investigation is continuing."
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/047743.htm; Levine's NewsBits - 08/25/00)

ENCRYPTION GETS REALLY SMALL -- Scientists at the University of Geneva are collaborating with the Swiss Ministry of Posts and Telecommunications on an experiment that uses quantum computers to run an unbreakable encryption algorithm. Cryptography could, in fact, be the first commercial application for this technology. Quantum computers are molecules, and being that tiny they can process data millions of times faster than the quickest supercomputer. But being so small, they also can take advantage of the peculiar rules of quantum physics.
http://www.informationweek.com/story/IWK20000818S0002; Levine 08/18)


THE KOREAN WAR: The SIGINT Background, by David A. Hatch and Robert Louis Benson (U.S. Cryptologic History Series 5, Vol. 3). Writes an AFIO reader: "Just rcvd my July 2000 "Intelligencer," and it has undergone the first of (at least) three passes, each in greater depth and concentration. Nice job, as usual! I wanted to ensure that you were aware that NSA's Center for Cryptologic History (CCH) has released a preliminary but unique Monograph on the Korean War. Unique in several respects: first unclassified publication on the subject, actually anticipated full classification review approval (in order to meet June anniversary), and released on Internet as well as hard copy (wraps).
Posted at http://www.nsa.gov/korea/korea_sigint.html in 19 pages with illustrations, it is also available gratis from the CCH or at the National Cryptologic Museum library. Title "The Korean War: the SIGINT Background," by David A. Hatch and Robert Louis Benson (U.S. Cryptologic History Series 5, Vol. 3). Interesting reading, and notes how techniques developed then were later applied in Viet Nam.


Lt Gen Linc Faurer, USAF (Ret) comments on last WIN:" --- today's Intelligence budget has been and is oriented to retention of capability against the existing threat vice investment in modernization to combat tomorrow's threat. The latter can only be done by spending more to do both, or by risking the present to prepare for the future. To date neither path has been chosen." LF

Sam Papich comments on Buckley's Novel -- "I refer to the Book Section of the WIN of 8/16/00 which covered Buckley's alleged novel entitled "The Undoing of James Jesus Angleton". I read that the book had not been reviewed by AFIO and that the mini-review was based on published reviews by Alan Weinstein and several others. Don't forget Weinstein was one of those who believed in the innocence of Alger Hiss until Venona appeared. Frankly, after reading the newsletter, one can readily get the impression that the critique is an AFIO product. It is time to speak up.

As an FBI Agent I was deeply involved with Angleton in the coordination of counterintelligence matters for a period of nearly twenty years. Bear in mind what we had on one side was an agency newly created responsible for foreign counterintelligence operations and on the other was a law enforcement agency enforcing statutes relating to internal security and becoming engaged in extremely sensitive operations supported by the interpretation of White House Executive Orders. There was no domestic counterintelligence service created by law or charter. Add to this the presence of some strong-willed personalities who had their differences. It is in this atmosphere how all of us countered the opposition from the Soviet Union and it's satellites.

For good reason I will not comment on Angleton and the internal workings of CIA and the Agency issues centered around Angleton's alleged obsession with Soviet deception and disinformation. Let me emphasize that we had our differences with Angleton but he did not in any way paralyze any of our operations... We did not overlook his concern about Soviet deception but we went on with our efforts to penetrate the KGB.

In all the communications, oral and written, I am very confident there was never a hint that Angleton supported Philby's innocence. I think I am right in stating that the Philby connection with the KGB did not crystallize until the Maclean-Burgess case exploded.. In all the conversations I had with Angleton I never heard a word of support for Philby. There were many in CIA and in the FBI who did not like Philby but nobody pinned him as a KGB Agent until Burgess and Maclean ran for cover. Bill Harvey may have been the primary "hater" but even he did not "have the goods"

When it is stated that Angleton's alleged demoralization of CIA counterintelligence went so far to even spot Ames, this is going too far and spells venom. This alone severely hits the rationale of the critics. Don't tell me that the many outstanding, dedicated personnel of CIA were going to be obstructed by one individual with whom they had differences. That was not the make-up of the real CIA.

Much of the controversy centered around Angleton was related to the bona fides of defectors.. There was a lot of debate and several participants and very often conclusions were based on limited evidence plus analysis..How much of past history has been refined over the years, particularly in recent times, is unknown. I assume that currently security restrictions hamper the clarification of past issues.

On the subject of bona fides there has been little or no comment on the system and the attendant procedures for the handling of defectors or double agents. A review might assist reaching more accurate findings.

May I recommend that we we be careful not to let writers become the primary references for past history.

Summing it up, let's give Jim Angleton a fair shake. Sam Papich


AFIO SYMPOSIUM / CONVENTION HOTEL NEWS -- The BWI Marriott Hotel is sold out for Thursday night (5 October), although we did get another bloc of rooms. In any case, there still appear to be rooms available for Friday and Saturday nights. You might even get a better deal if you ask for the weekend rate for Friday/Saturday only, and go to one of the other hotels listed on our Website for Thursday night. For the other hotels - don't mention AFIO -- get your best deal -- rates are flexible and often discounted for AAA, AARP etc. AFIO Website has details: www.afio.com
(!) Comfort Suites, Linthicum (2 mi) 1-800 228-5150 ($100 range)
(2) Marriott Courtyard (walking distance to BWI Marriott) 1-800 321 2211 ($125 for AAA)
(3) Hampton Inn, Linthicum Heights, (2 miles) 1-800 426 7866 ($90 range)
(4) Days Inn, Glen Burnie (3 mi) 1-800 329 7466 ($80 range)
(5) Hampton Inn, Glen Burnie (3 mi) 1-800 426 7866
(6) Susse Chalet, Linthicum Heights (2 mi) 1-800 524 2538 ($70 range)
(7) Embassy Suites, Linthicum Heights (2 mi) 1-800 362 2779 ($200 range)

The Institute of World Politics (IWP) is a new graduate school specializing in courses on intelligence, counterintelligence, national security, statecraft, and related topics. Boston University accredits courses. Courses start the week of 5 September at the Institute, at 1521 16th Street, NW, Washington, DC 20036. Telephone (202) 462-2101 or 1(888) KNOW-IWP, or www.iwp.edu. Several AFIO members are instructors, as well students.
AFIO WINs are protected by copyright laws. The information is provided to members for non-profit educational purposes. For back issues with some weeks delay, or AFIO Membership and Symposium information, see the expanded AFIO Website www.afio.com.

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