Weekly Intelligence Notes #34-01
27 August 2001

WIN #34-01 dated 27 Aug 2001

AFIO SYMPOSIUM AND CONVENTION "Statecraft, Tradecraft and Hi-Technology - Intelligence in 2001 And Beyond," will be conducted  on 2 and 3 November 2001 in McLean, Virginia. See AFIO Website
www.afio.com, or last week's WIN #33, for details. Check our super agenda. Sign up now and assure your space. AFIO-reserved room rates at the Sheraton Premier, and plane fares, are low when reserved in advance.


RETIRED AIR FORCE SERGEANT ARRESTED AS A SPY -- A retired 38-year-old former Air Force Master Sergeant, Brian P. Regan, married  and father of four, who until recently worked at the NRO as a TRW employee, was arrested on  August 24th  and  charged with conspiracy to commit espionage.  Regan, who has a top-secret security clearance, allegedly began passing classified documents and photos  shortly after his retirement from the Air Force a year ago, in August 2000. The foreign intelligence recipients were not identified in the FBI affidavit, but sources indicated it was Libya, possibly among others.  The FBI is investigating if other countries were also involved.
    What damage did he do? The material  that Regan is accused of selling or trying to sell was classified "secret" and included unclassified pages from otherwise classified documents. He apparently downloaded the documents and imagery from Intelink, the classified government database system of intelligence documents modeled on the Web. One US official  said "It's clear he was trying to peddle classified information. . . . It is not clear he ever succeeded, other than peddling some samples." The samples included "some analytic product" -- not the super-secret technology being developed for the National Reconnaissance Office's next generation of spy satellites.
    Why did he do it?  The cause appears to be money troubles. The affidavit states he had $53,000 in credit-card debt, an amount that was unofficially later increased to $59,000. A Sergeant's retirement pay is not rich living, even when added to his presumed salary as an administrative employee of TRW. The sergeant and his family apparently had appetites beyond their means and succumbed to the pervasive contemporary consume-now, pay-later, easy-credit advertising environment,  and subsequently  fell victim to the usurious credit card interest rates now accepted as commonplace. In neither the management of his private financial affairs, nor in his manner of seeking foreign customers (through the Internet) does the former NCO appear to merit  an "A" for smarts - leaving aside the low moral standards aspect of his alleged betrayal.                                                                                                     
    Why Libya? The US allegedly is highly interested in Libya's developing chemical industry, and it was speculated that Libyan intelligence might be interested in the US overhead coverage and reporting of this effort. Libya also has less-than-friendly relations with its neighbors, and might be interested in coverage of those states. Of course Regan apparently did not care about Libya as such - he was trying to peddle his wares to other states as well.  He is being held without bond, and if found guilty, his life is essentially done.  (Jonkers)  (WashPost 25Aug01, p.1//Masters&Loeb); US News &Wrld Rpt 3 Sep01; Newsweek; FFJournal, Aug27, o1, p. A3)

INTEL COMM SENIOR CHANGES AT NSA -- DIRNSA has named four outsiders to senior NSA slots. An executive at Science Application International Corp., Riley Purdue, is to be the chief of signals intelligence requirements in the newly created Directorate of Signals Intelligence. The other three NSA appointments are: (1) Richard G. Turner, former information executive at the Federal Trade Commission, as NSA's chief Information Officer. (2) Michael G. Lawrence, former director of intergovernmental affairs at the District's Court Services and Offender Supervision Agency, as Director of Legislative Affairs. (3) William E. Vajda, a former information official at the IRS, as Deputy Director for Information Technology and Infrastructure Services.
    The NSA changes continue a trend earlier established by Lt. Gen Hayden in a push for outside talent at the same time that he has made galactic changes in NSA's way of doing the nation's cryptologic business.  (Harvey) (Wash Post 4 Aug '01, p. A4 and 7 Aug '01, p.13, V. Loeb)

RUSSIAN SIGINT CENTER IN CUBA CLOSING? -- Defense Minister Sergei Ivanov and Deputy Prime Minister Ilya Klebanov refused on 15 August to confirm media reports that the process of dismantling the Russian electronic intercept  center in Lourdes, Cuba, has begun, RIA-Novosti reported. According to articles in "Izvestiya" on 14 August and "Versiya" No. 33, Russia began withdrawing the center's personnel after it failed to come to an agreement with Cuba about who will finance it.  The center is run jointly by the Third Directorate of the Federal Agency for Government Communication and Information (FAPSI) and the Sixth Directorate of Russian Military Intelligence (GRU), and employs about 1,000 personnel at a cost of about $300 million a year. (Macartney) (RFE/RL, 16 Aug 2001) (  http://www.rferl.org/newsline/search )

NEW DOD SECURITY CLEARANCE POLICY --  In the future the Department of Defense will withhold security clearances from any Pentagon employee or contractor who has ever been convicted of a  crime and sentenced to a year in jail; who illegally uses controlled substances; who is mentally incompetent; or who has been dishonorably discharged from the military. These provisions were part of last year's Congressional Defense Authorization act.  They have been criticized because they lack flexibility. Also, since the policy applies only to the Defense Department, there will be discrepancies between departments  and agencies. (Macartney //Aftergood) 


WRONGLY ACCUSED CIA OFFICER REINSTATED.  The accusations leveled in August 1999 prompted the CIA to suspend the officer for 21 months. He remained under surveillance, and his daughter was denied a promotion. His ex-wife, two sons and two sisters were interrogated at work and at home by FBI agents who cast doubt on the man they thought they knew. Friends and colleagues whispered about the traitor in their midst.  All of it turned out to be wrong. The real spy was Robert Hanssen, an FBI counterintelligence agent who pleaded guilty last month to 15 counts of espionage. The CIA officer returned to work in May with all his security clearances restored. "There are no lingering doubts," a CIA official said. A sad tale of 'collateral damage.' (Macartney)

GADDAFI REVENGE FOR DEATH OF HIS INFANT DAUGHTER -- The British Treasury solicitor, Roland Philips, has banned the "Sunday Times" from publishing details of a tightly coordinated and classified three-year joint US/UK investigation involving MI6, MI5, the CIA and the FBI, and the SIGINT/ELINT organizations GCHQ and NSA, which concluded that the Libyan leader, Colonel Gaddafi, personally ordered his brother-in-law, Abdullah Senoussi, head of the foreign intelligence service (ESO) to destroy a US airline in retaliation for the USAF bombing of Tripoli and Benghazi in April 1986 in which 60 people, including Col. Gaddafi's 18-month-old daughter, died.
    The unilateral raids on Libya had been ordered by President Ronald Reagan and were carried out by British-based F-111s. The raid also damaged the French, Austrian and Finnish embassies in the Libyan capital, as well as several civilian residential districts. (Jonkers)
(pjk [udorn2@earthlink.net]08/28)

CROAT GENERAL ANTE GOTOVINA ACCUSED OF WAR CRIMES IN CIA-SUPPORTED WAR -- In July 1995 the Croats, supported by the Germans and the US, planned a military campaign (Operation Storm)  against the Serb population in Krahina, an area which had been recognized by the West as part of the new state of Croatia. US support for the Croats - with their murderous record of Jew and Serb torture and killing in World War II - can be considered  a testimonial to warped US policies in the area, took the form of an ideological anti-Serb crusade. In this context the CIA was ordered to support the Croat effort to conquer the rebellious Serb population (the reverse of Kosovo).   GNAT-750 drones photographed Serb troop positions and weapons emplacements and the results were sent to the headquarters of Croatian General Gotovina, in command of "Operation Storm." The information proved vital to the success of Operation Storm, according to the Croats. For example, late in the 72-hour campaign the drone photos showed Serb forces massing for a counterthrust. General Gotovina massed his troops at the point of the Serb breakthrough and shattered the assault. The classified reconnaissance missions supporting the Croats continued for months, until long after Croat forces had pushed the Serbs into neighboring Bosnia.
    In addition to reconnaissance information, the US also provided encryption gear to each of Croatia's Army brigades. In addition, according to Miro Tudjman, son of the late president Franjo Tudjman and head of the Croatian Intelligence in the mid-1990s, the CIA also spent at least $10 million on equipment in Croatian listening posts intercepting telephone calls in Bosnia and Serbia. "All our [electronic] intelligence in Croatia went online in real time to the National Security Agency in Washington," says Tudjman. "We had a de facto partnership." US military contract personnel were also employed to train the Croat Army.
    The Croats maintain that the US supported Operation Storm and its objectives, and knew all about it, and that, therefore, General Gotovina is not guilty of war crimes. The UN Chief prosecutor maintains that Gotovina had personal and command responsibilities for the atrocities committed during and after Operation Storm.  The indictment specifically argues that the "cumulative effect" of actions by the Croatian Army "led to the large-scale displacement" of Serbs. Several hundred-thousands of Krahina Serbs were terrorized, their homes burned, and driven out or fled from Croatia and northwestern Bosnia.  If this operation had been done by the Serbs, of course, it would have been called ethnic cleansing. In this case, the US actively supported it, the liberal US media approved, and US Ambassador Holbrooke was cited in the press as being relieved that the situation had been resolved. It will be interesting to see how this belated war crimes indictment unrolls. (Jonkers)  (Newsweek 27 August 2001, p. 30 //R. Gutman)

AMERICAN CONTRACT PILOTS SPRAY FIELDS IN COLUMBIA -- Some 335 civilian employees of Dyncorp, half of them Americans, work in Columbia spraying fields of  coca and heroin poppies that are often guarded by leftist rebels. This operation has been ongoing for 6 or more years under contract to the State Department. Congress has set an in-country limit of 500 American military and 300 American civilians in Columbia.  Dyncorp and other contractors get around those limits by hiring indigenous aircrew personnel to spray drug crops, man radar stations, etc.

FBI INQUIRY IN USS COLE ATTACK NEARING A HALT IN YEMEN -- More than 10 months after two Arabic-speaking suicide bombers attacked the destroyer USS Cole in Aden, killing 17 American sailors, an F.B.I. investigation has virtually ground to a halt because Yemen has refused repeated American requests to widen the inquiry to include Islamic militant groups in Yemen. Senior bureau investigators say Yemen has denied them access to prominent Yemenis whom the Americans want to interview in their bid to link the attack to elements of Mr. bin Laden's network in Yemen, which became a key base for him in the early 1990's. Now, senior Yemeni officials have indicated that they plan to close the case by trying six men who were arrested soon after the bombing. Said the foreign minister, " we believe that the investigation is complete, and that it is time to hand over the file in the case to the prosecutor."  Dr. Qurbi said additional interviews proposed by the F.B.I. would be a breach of Yemen's sovereignty because they would involve strictly domestic matters. American investigators have long suspected that Yemen planned to follow the pattern set by Saudi Arabia after Islamic militants mounted the truck bombing in 1996 at the Khobar Towers military housing, which killed 19 Americans. After denying the F.B.I. access to suspects in the bombing, Saudi Arabia tried and executed them.
    The core of the dispute lies in possible links between the bombing and a wide array of militant Islamic groups in Yemen. In the late 1980's Mr. bin Laden, with American encouragement, recruited widely among young Yemenis for the guerrilla struggle against Soviet forces in Afghanistan. When the Afghan struggle ended, some of those men helped Mr. bin Laden set up a terrorist network in Yemen, using thousands of Afghan war veterans who later supported President Salih's forces in a civil war against Communist secessionists in 1994. "It was clear from the start that the accessories to the attack would be tried, convicted and executed, but that the people inside Yemen who financed it, and used their power to facilitate it, would never be brought to book," a newspaper editor said, in remarks made on a guarantee of anonymity.  "That's the way things are done here, and the Americans were naive to imagine that it could ever have been any other way." (Jonkers) (NYT 21 Aug01 /J. Burns) 

DEFUNCT RUSSIAN / US WARNING CENTER -- An empty, graffiti-marked building in the Babushkin area of Moscow provides a graphic caution to the optimistic approach to cooperation, on intelligence early warning in this instance, with the Russian regime.  A joint early warning center was announced by Clinton/Yeltsin, to "avert nuclear war by mistake," in 1998 and then was again announced by Clinton/Putin, "a milestone in enhancing strategic security," in June 2000.  In fact, planning for the early warning center has ground to a halt, stymied by conflicting priorities, geopolitics and and legal issues.  The $8 million dollar center has become mired in details -- the Russians said their law required Americans to pay taxes on the equipment brought into the country and to assume liability for construction [almost has a North Korean blackmail ring to it].  The Americans did not want to set a precedent that would affect larger aid programs and importantly, the Clinton administration lost interest.
    Russia's huge blind spots in detecting missile launches are left unaddressed by the stalemate; a mistaken Russian warning (as almost happened in 1995) could trigger  an unintended nuclear exchange.  The joint center, mutually manned and sharing data, could be at least a first step in reducing the danger.  Only two to four of the nine high-elliptical satellites that Russia had in orbit in 1995 are still functioning today, and at least seven hours a day Russia is blind to possible launches from US missile fields.  The seven satellites Russia built to establish full coverage have not been launched, apparently for lack of money.  Additionally, Russia has not completed rebuilding its ground-based radar network  since losing some facilities with the break-up of the Soviet Union.(Harvey) ( Wash Post 13 Jun '01, p.23 // P. Baker)

FALL TV SCHEDULE TO FEATURE CIA COUNTER-TERRORISM -- Coming this fall are new primetime drama series featuring the CIA and the pursuit of  terrorists around the globe. The new shows will be on  CBS, NBC, ABC and Fox. These are not the usual fake media depictions of the CIA involvement in foreign assassinations and sinister, quasi-legal intelligence operations. The pilots for both "Alias" and "The Agency" were made with the assistance of the Agency itself.  In a rare bit of CIA glasnost, the producers of one of the new shows, "The Agency,"  were permitted to shoot scenes at CIA headquarters in Langley. In one, the camera tracks its stars as they stroll across the CIA's lobby. Another scene shows employees arriving at work.  For verisimilitude (and security), the producers used real off-duty CIA employees in the latter scene, which was shot during off-hours on a Saturday. To dress the interior sets back in Los Angeles, the CIA provided classified-trash burn bags and posters of agency seals and flags ("Alias" received technical advice from the CIA, but no props or physical access). 
    The unusual openness reflects a new PR approach, finally following in the footsteps of the FBI. After years of flatly turning down film and TV requests -- and seeing itself too often portrayed as a company of cold-blooded killers -- the CIA began to get with the program about five years ago. A veteran field operative, Chase Brandon, became its first full-time public liaison with Hollywood. Brandon's job is to sort through scores of requests for the CIA's help in making feature films and documentaries. His mission, he says, is both accuracy and image enhancement. Anything that smacks of the old shoot'em-up CIA is rejected. "If someone wants to slander us," he says, "it's not in our interest to cooperate."  
    Of course, the producers of the new fall series don't feel compelled to be slavishly accurate. "With all deference to the CIA, which I respect enormously, it's less interesting to me than the story I'm trying to tell," said one of the producers.   Also, since TV tends to create its own reality, it's will be no surprise that the TV version of the federal government at times bears only a loose resemblance to the real thing. For example:   

    'Love that government lifestyle.' On Fed TV, no one works in a standard-issue, GSA-approved office cubicle. The headquarters of the CTU (that's Counter-Terrorism Unit) on "24" are a modernist design triumph -- all sleek stainless steel and glass surfaces. "Alias's" Sydney Bristow (Jennifer Garner) works in a secret agency that appears to have leased a refurbished loft. Work space is, of course, ample, even sprawling. And when the characters travel, they fly first-class.
    'The federal government as  high-tech heaven.' On Fed TV, information -- any information -- is instantly accessible via the sleekest computers you've never seen. Sophisticated graphics dance and pirouette across oversize monitors at the touch of a button. Every office has hip, headset-wearing computer jockeys on hand to fetch all the data the boss demands.  Oddly enough, these sophisticated systems never crash, which means no investigation is ever stopped cold while Tech Support tinkers.                                                      
    'A strict fashion hierarchy.' Senior officers always keep their ties and suit jackets on (ID badge required), whereas the younger, better-looking operatives wear their Armanis tie-less (and badge-less). The techie grunts, meanwhile, dress like bike messengers.
    'Macho Dialogue.' The Feds also talk funny, making it appear that federal agents must pass a civil service test to ensure they adhere to the Federal Code of Macho Dialogue. None of this new crop of TV do-gooders ever answers his cell phone with a pleasant "Hello." Instead, they all curtly spit out their last names, or some gruff interrogative, such as "Whaddaya got?" The chief in "UC: Undercover" instructs his unit in covert surveillance thus: "Jake breathes, we hear him. He sneezes, we're there to wipe his nose. He goes to the head, we flush." . . .
    '007'. One producer promises that his show will raise unsettling questions about the "ethical and moral choices" CIA operatives make.  To re-coin a phrase, illegal activity in the defense of liberty is no vice - - it's just what they do on Fed TV. The new shows offer a catalogue of activities that would make the folks at the ACLU or Human Rights Watch cringe. TV feds don't need search warrants to go busting down doors. Shootings and kidnappings and extra-legal interrogations are SOP. "The Agency's" key field operative (Bellows) takes out a pesky foreign agent in the lobby of the Ronald Reagan Building by shooting him with a knockout dart; Sutherland's character on "24" pulls the same stunt on a suspicious colleague. When a suspect protests a head-busting bust on "Undercover," she's wrestled into submission and told, "You have the right to shut up!"

            Feature films and TV portrayals of the FBI have long served as effective image-enhancement tools for the Bureau. CIA has not fared as well during the Cold War, but it is hopefully well served by, for a change,  being portrayed as the 'good guys,' thanks to the  contemporary popularity of  the counter-terrorist media theme,  to polish its image among the younger generation -- even if the shows bear little resemblance to reality. (Jonkers) (Wash Post)


FBI CAN TAP INTO WIRELESS EMAIL -- Federal law enforcement authorities may soon expand the use of a controversial FBI monitoring system to capture e-mail and other text messages sent through wireless telephone carriers, as well as messages from their Internet service providers, according to a telecommunications industry group. The FBI has been using the system, called Carnivore, for two years, subject to court authorization, to tap into Internet communications, identify e-mail writers online or record the contents of messages. It does so by capturing "packets" of information containing those details.(Levine's Newsbits 24 Au 01)

NSA RELEASED SECURITY-ENHANCED LINUX --This version of Linux has a strong, flexible mandatory access control architecture incorporated into the major subsystems of the kernel. The system provides a mechanism to enforce the separation of information based on confidentiality and integrity requirements. This allows threats of tampering and bypassing of application security mechanisms to be addressed and enables the confinement of damage that can be caused by malicious or flawed applications. It's free! (Levine Newsbits 08/27)

DSL-type CONNECTIONS WITHOUT FIREWALLS INVITE VIRUSES AND INTRUSIONS -- High-speed Net users without Firewalls are sitting ducks for hackers. It's the biggest computer threat you've probably never heard about. Countless consumers are unwittingly making themselves targets of computer attacks by leaving their front doors wide open, exposed to the entire Internet world. As more computer users convert to souped-up Internet access, as the ranks of the technically un-savvy grow, more are making themselves vulnerable to malicious hacking around the globe from powerful but invisible scanners.(Levine 08/27)



COUNTERINTELLIGENCE PROSECUTION DIFFICULTIES  -- The General Accounting Office provides a rare glimpse into the ambivalent relations between spy hunters and prosecutors in a report released last week entitled "FBI Intelligence Investigations: Coordination Within Justice on Counterintelligence Criminal Matters is Limited."  The text of the report (a 500 kB PDF file) may be found here: (http://www.fas.org/irp/gao/d01780.pdf ) (Secrecy News) 

SENATE SELECT COMMITTEE ON INTELLIGENCE ANNUAL REPORT -- 106th Congress (1999-2000). The report provides some new information on the Committee's diverse activities. The new Senate Intelligence Committee report (S. Rep. 107-51), dated August 3, may be found at http://www.fas.org/irp/congress/2001_rpt/srep107-51.html(Secrecy News 10 Aug01)

REPORT ON CIA's  IN-Q-TEL PROGRAM -"The Report of the Independent Panel on the CIA In-Q-Tel Venture," by Business Executives for National Security (BENS), was released on August 7. According to the report,  "In-Q-Tel has achieved significant early progress . . . To date, In-Q-Tel has reviewed hundreds of business plans, made more than a dozen investments, brought five technologies and services to the Agency for use or demonstration, and has implemented three pilots since its charter was signed in July 1999.  By private sector standards, this represents a noteworthy accomplishment and the start of a good track record." At the same time, however, the authors found that a host of technological, security and other barriers at the CIA pose fundamental challenges to the In-Q-Tel initiative. "The CIA has been unprepared ... to integrate the solutions In-Q-Tel delivers."  The report may be found on the BENS web site: http://www.bens.org/highlights_InQTel.html 
(Secrecy News 10Aug01)

HUAC RECORDS UNSEALED -- The records of the former House Committee on Un-American Activities (HUAC) are being made available to the public. The collection includes HUAC records concerning atomic espionage  as well as Committee investigations  into the Ku Klux Klan, American Nazis, civil rights and anti-war activists, and diverse other topics dating from 1945 to 1975, when HUAC was abolished. Further information  may be found in an August 8 press release from the National Coordinating Committee for the Promotion of History -- (Secrecy News)  http://www.fas.org/sgp/news/2001/08/huac.html

WEN HO LEE BOOK GENERATING SECURITY PROBLEMS --  Los Alamos scientist Wen Ho Lee is writing a book, "My Country Versus Me: The First-Hand Account by the Los Alamos Scientist Who Was Falsely Accused of Being a Spy," is described as an autobiography and was written with Helen Zia, a journalist. It will be published by Hyperion Books.  The problem is that as Lee submits his book for security review, at least seven uncleared people, including his editor and co-author are thought to have seen it. (Macartney)

WINs are produced by Roy Jonkers for AFIO members and for  WIN subscribers. Associate editors John Macartney and Don Harvey contribute articles to the WINs. Opinions expressed are those of the editor(s) or writers cited with each article.

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