Edward Snowden papers unmask close technical cooperation and loose alliance between British, German, French, Spanish and Swedish spy agencies

The German, French, Spanish and Swedish intelligence services have all developed methods of mass surveillance of internet and phone traffic over the past five years in close partnership with Britain’s GCHQ eavesdropping agency.

The bulk monitoring is carried out through direct taps into fibre optic cables and the development of covert relationships with telecommunications companies. A loose but growing eavesdropping alliance has allowed intelligence agencies from one country to cultivate ties with corporations from another to facilitate the trawling of the web, according to GCHQ documents leaked by the former US intelligence contractor Edward Snowden.

The files also make clear that GCHQ played a leading role in advising its European counterparts how to work around national laws intended to restrict the surveillance power of intelligence agencies.

The German, French and Spanish governments have reacted angrily to reports based on National Security Agency (NSA) files leaked by Snowden since June, revealing the interception of communications by tens of millions of their citizens each month. US intelligence officials have insisted the mass monitoring was carried out by the security agencies in the countries involved and shared with the US.

The US director of national intelligence, James Clapper, suggested to Congress on Tuesday that European governments’ professed outrage at the reports was at least partly hypocritical. “Some of this reminds me of the classic movie Casablanca: ‘My God, there’s gambling going on here,’ ” he said.

Sweden, which passed a law in 2008 allowing its intelligence agency to monitor cross-border email and phone communications without a court order, has been relatively muted in its response.

The German government, however, has expressed disbelief and fury at the revelations from the Snowden documents, including the fact that the NSA monitored Angela Merkel’s mobile phone calls.

After the Guardian revealed the existence of GCHQ’s Tempora programme, in which the electronic intelligence agency tapped directly into the transatlantic fibre optic cables to carry out bulk surveillance, the German justice minister, Sabine Leutheusser-Schnarrenberger, said it sounded “like a Hollywood nightmare”, and warned the UK government that free and democratic societies could not flourish when states shielded their actions in “a veil of secrecy”.

‘Huge potential’

However, in a country-by-country survey of its European partners, GCHQ officials expressed admiration for the technical capabilities of German intelligence to do the same thing. The survey in 2008, when Tempora was being tested, said the Federal Intelligence Service (BND), had “huge technological potential and good access to the heart of the internet – they are already seeing some bearers running at 40Gbps and 100Gbps”.

Bearers is the GCHQ term for the fibre optic cables, and gigabits per second (Gbps) measures the speed at which data runs through them. Four years after that report, GCHQ was still only able to monitor 10 Gbps cables, but looked forward to tap new 100 Gbps bearers eventually. Hence the admiration for the BND.

The document also makes clear that British intelligence agencies were helping their German counterparts change or bypass laws that restricted their ability to use their advanced surveillance technology. “We have been assisting the BND (along with SIS [Secret Intelligence Service] and Security Service) in making the case for reform or reinterpretation of the very restrictive interception legislation in Germany,” it says.

The country-by-country survey, which in places reads somewhat like a school report, also hands out high marks to the GCHQ’s French partner, the General Directorate for External Security (DGSE). But in this case it is suggested that the DGSE’s comparative advantage is its relationship with an unnamed telecommunications company, a relationship GCHQ hoped to leverage for its own operations.

“DGSE are a highly motivated, technically competent partner, who have shown great willingness to engage on IP [internet protocol] issues, and to work with GCHQ on a “cooperate and share” basis.”

Noting that the Cheltenham-based electronic intelligence agency had trained DGSE technicians on “multi-disciplinary internet operations”, the document says: “We have made contact with the DGSE’s main industry partner, who has some innovative approaches to some internet challenges, raising the potential for GCHQ to make use of this company in the protocol development arena.”

GCHQ went on to host a major conference with its French partner on joint internet-monitoring initiatives in March 2009 and four months later reported on shared efforts on what had become by then GCHQ’s biggest challenge – continuing to carry out bulk surveillance, despite the spread of commercial online encryption, by breaking that encryption.

“Very friendly crypt meeting with DGSE in July,” British officials reported. The French were “clearly very keen to provide presentations on their work which included cipher detection in high-speed bearers. [GCHQ’s] challenge is to ensure that we have enough UK capability to support a longer term crypt relationship.”

Fresh opportunities

In the case of the Spanish intelligence agency, the National Intelligence Centre (CNI), the key to mass internet surveillance, at least back in 2008, was the Spaniards’ ties to a British telecommunications company (again unnamed. Corporate relations are among the most strictly guarded secrets in the intelligence community). That was giving them “fresh opportunities and uncovering some surprising results.

“GCHQ has not yet engaged with CNI formally on IP exploitation, but the CNI have been making great strides through their relationship with a UK commercial partner. GCHQ and the commercial partner have been able to coordinate their approach. The commercial partner has provided the CNI some equipment whilst keeping us informed, enabling us to invite the CNI across for IP-focused discussions this autumn,” the report said. It concluded that GCHQ “have found a very capable counterpart in CNI, particularly in the field of Covert Internet Ops”.

GCHQ was clearly delighted in 2008 when the Swedish parliament passed a bitterly contested law allowing the country’s National Defence Radio Establishment (FRA) to conduct Tempora-like operations on fibre optic cables. The British agency also claimed some credit for the success.

“FRA have obtained a … probe to use as a test-bed and we expect them to make rapid progress in IP exploitation following the law change,” the country assessment said. “GCHQ has already provided a lot of advice and guidance on these issues and we are standing by to assist the FRA further once they have developed a plan for taking the work forwards.”

The following year, GCHQ held a conference with its Swedish counterpart “for discussions on the implications of the new legislation being rolled out” and hailed as “a success in Sweden” the news that FRA “have finally found a pragmatic solution to enable release of intelligence to SAEPO [the internal Swedish security service.]”

GCHQ also maintains strong relations with the two main Dutch intelligence agencies, the external MIVD and the internal security service, the AIVD.

“Both agencies are small, by UK standards, but are technically competent and highly motivated,” British officials reported. Once again, GCHQ was on hand in 2008 for help in dealing with legal constraints. “The AIVD have just completed a review of how they intend to tackle the challenges posed by the internet – GCHQ has provided input and advice to this report,” the country assessment said.

“The Dutch have some legislative issues that they need to work through before their legal environment would allow them to operate in the way that GCHQ does. We are providing legal advice on how we have tackled some of these issues to Dutch lawyers.”

European allies

In the score-card of European allies, it appears to be the Italians who come off the worse. GCHQ expresses frustration with the internal friction between Italian agencies and the legal limits on their activities.

“GCHQ has had some CT [counter-terrorism] and internet-focused discussions with both the foreign intelligence agency (AISE) and the security service (AISI), but has found the Italian intelligence community to be fractured and unable/unwilling to cooperate with one another,” the report said.

A follow-up bulletin six months later noted that GCHQ was “awaiting a response from AISI on a recent proposal for cooperation – the Italians had seemed keen, but legal obstacles may have been hindering their ability to commit.”

It is clear from the Snowden documents that GCHQ has become Europe’s intelligence hub in the internet age, and not just because of its success in creating a legally permissive environment for its operations. Britain’s location as the European gateway for many transatlantic cables, and its privileged relationship with the NSA has made GCHQ an essential partner for European agencies. The documents show British officials frequently lobbying the NSA on sharing of data with the Europeans and haggling over its security classification so it can be more widely disseminated. In the intelligence world, far more than it managed in diplomacy, Britain has made itself an indispensable bridge between America and Europe’s spies.

Julian Borger
The Guardian, Friday 1 November 2013 17.02 GMT

Find this story at 1 November 2013

© 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved.

Spain and France’s intelligence agencies carried out collection of phone records and shared them with NSA, agency says

European intelligence agencies and not American spies were responsible for the mass collection of phone records which sparked outrage in France and Spain, the US has claimed.
General Keith Alexander, the head of the National Security Agency, said reports that the US had collected millions of Spanish and French phone records were “absolutely false”.
“To be perfectly clear, this is not information that we collected on European citizens,” Gen Alexander said when asked about the reports, which were based on classified documents leaked by Edward Snowden, the former NSA contractor.
Shortly before the NSA chief appeared before a Congressional committee, US officials briefed the Wall Street Journal that in fact Spain and France’s own intelligence agencies had carried out the surveillance and then shared their findings with the NSA.
The anonymous officials claimed that the monitored calls were not even made within Spanish and French borders and could be surveillance carried on outside of Europe.

In an aggressive rebuttal of the reports in the French paper Le Monde and the Spanish El Mundo, Gen Alexander said “they and the person who stole the classified data [Mr Snowden] do not understand what they were looking at” when they published slides from an NSA document.
The US push back came as President Barack Obama was said to be on the verge of ordering a halt to spying on the heads of allied governments.
The White House said it was looking at all US spy activities in the wake of leaks by Mr Snowden but was putting a “special emphasis on whether we have the appropriate posture when it comes to heads of state”.
Mr Obama was reported to have already halted eavesdropping at UN’s headquarters in New York.
German officials said that while the White House’s public statements had become more conciliatory there remained deep wariness and that little progress had been made behind closed doors in formalising an American commitment to curb spying.
“An agreement that you feel might be broken at any time is not worth very much,” one diplomat told The Telegraph.
“We need to re-establish trust and then come to some kind of understanding comparable to the [no spy agreement] the US has with other English speaking countries.”
Despite the relatively close US-German relations, the White House is reluctant to be drawn into any formal agreement and especially resistant to demands that a no-spy deal be expanded to cover all 28 EU member states.
Viviane Reding, vice-president of the European Commission and EU justice commissioner, warned that the spying row could spill over and damage talks on a free-trade agreement between the EU and US.
“Friends and partners do not spy on each other,” she said in a speech in Washington. “For ambitious and complex negotiations to succeed there needs to be trust among the negotiating partners. It is urgent and essential that our US partners take clear action to rebuild trust.”
A spokesman for the US trade negotiators said it would be “unfortunate to let these issues – however important – distract us” from reaching a deal vital to freeing up transatlantic trade worth $3.3 billion dollars (£2bn) a day.
James Clapper, America’s top national intelligence, told a Congressional hearing yesterday the US does not “spy indiscriminately on the citizens of any country”.
“We do not spy on anyone except for valid foreign intelligence purposes, and we only work within the law,” Mr Clapper said. “To be sure on occasions we’ve made mistakes, some quite significant, but these are usually caused by human error or technical problems.”
Pressure from European leaders was added to as some of the US intelligence community’s key Congressional allies balked at the scale of surveillance on friendly governments.
Dianne Feinstein, the chair of powerful Senate intelligence committee, said she was “totally opposed” to tapping allied leaders and called for a wide-ranging Senate review of the activities of US spy agencies.
“I do not believe the United States should be collecting phone calls or emails of friendly presidents and prime ministers,” she said.
John Boehner, the Republican speaker of the house and a traditional hawk on national security, said US spy policy was “imbalanced” and backed calls for a review.
Mr Boehner has previously been a staunch advocate of the NSA and faced down a July rebellion by libertarian Republicans who tried to pass a law significantly curbing the agency’s power.

By Raf Sanchez, Peter Foster in Washington8:35PM GMT 29 Oct 2013 Comments15 Comments

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U.S. officials are alerting some foreign intelligence services that documents detailing their secret cooperation with the United States have been obtained by former National Security Agency contractor Edward Snowden, according to government officials.

Snowden, U.S. officials said, took tens of thousands of military intelligence documents, some of which contain sensitive material about collection programs against adversaries such as Iran, Russia and China. Some refer to operations that in some cases involve countries not publicly allied with the United States.

The process of informing officials in capital after capital about the risk of disclosure is delicate. In some cases, one part of the cooperating government may know about the collaboration while others — such as the foreign ministry — may not, the officials said. The documents, if disclosed, could compromise operations, officials said.

The notifications come as the Obama administration is scrambling to placate allies after allegations that the NSA has spied on foreign leaders, including German Chancellor Angela Merkel. The reports have forced the administration to play down operations targeting friends while also attempting to preserve other programs that depend on provisional partners. In either case, trust in the United States may be compromised.

“It is certainly a concern, just as much as the U.S. collection [of information on European allies] being put in the news, if not more, because not only does it mean we have the potential of losing collection, but also of harming relationships,” a congressional aide said.

The Office of the Director of National Intelligence is handling the job of informing the other intelligence services, the officials said. ODNI declined to comment.

In one case, for instance, the files contain information about a program run from a NATO country against Russia that provides valuable intelligence for the U.S. Air Force and Navy, said one U.S. official, who requested anonymity to discuss an ongoing criminal investigation. Snowden faces theft and espionage charges.

“If the Russians knew about it, it wouldn’t be hard for them to take appropriate measures to put a stop to it,” the official said.

Snowden lifted the documents from a top-secret network run by the Defense Intelligence Agency and used by intelligence arms of the Army, Air Force, Navy and Marines, according to sources, who spoke on the condition of anonymity to discuss sensitive matters.

Snowden took 30,000 documents that involve the intelligence work of one of the services, the official said. He gained access to the documents through the Joint Worldwide Intelligence Communications System, or JWICS, for top-secret/sensitive compartmented information, the sources said.

The material in question does not deal with NSA surveillance but primarily with standard intelligence about other countries’ military capabilities, including weapons systems — missiles, ships and jets, the officials say.

Although Snowden obtained a large volume of documents, he is not believed to have shared all of them with journalists, sources say. Moreover, he has stressed to those he has given documents that he does not want harm to result.

“He’s made it quite clear that he was not going to compromise legitimate national intelligence and national security operations,” said Thomas Drake, a former NSA executive who visited Snowden in Moscow this month. Snowden separately told Drake and a New York Times reporter that he did not take any documents with him to Russia. “There’s a zero percent chance the Russians or Chinese have received any documents,” Snowden told the Times in an online interview last week.

Indeed, Drake said, Snowden made clear in their conversation that he had learned the lessons of prior disclosures, including those by an Army private who passed hundreds of thousands of diplomatic cables to the anti-
secrecy organization WikiLeaks, which posted them in bulk online. “It’s telling,” Drake said, “that he did not give anything to WikiLeaks.”

Nonetheless, the military intelligence agencies remain fearful, officials said. The NSA in recent months has provided them with an accounting of the documents it believes Snowden obtained.

Intelligence officials said that they could discern no pattern to the military intelligence documents taken and that Snowden appeared to have harvested them at random. “It didn’t seem like he was targeting something specific,” the U.S. official said.

The notifications are reminiscent of what the State Department had to do in late 2010 in anticipation of the release of hundreds of thousands of sensitive diplomatic cables by WikiLeaks. The department feared that embarrassing details in some of the cables would lead to tension in relations between the United States and other countries.

In the case of WikiLeaks, the State Department had a number of months to assess the potential impact of the cables’ release and devise a strategy, former State Department spokesman P.J. Crowley said.

“I’m not sure there were that many startling surprises in the cables,” he said. But there was damage on a country-by-country basis, he said.

For instance, some of the cables reflected unfavorably on ­then-Libyan leader Moammar Gaddafi, alleging that he feared flying over water and almost never traveled without his “voluptuous blonde” Ukrainian nurse. “All of a sudden we found there were some unsavory guys following” then-U.S. Ambassador to Libya Gene Cretz, Crowley said. “We brought him home for consultations and did not send him back.”

“But broadly speaking,” Crowley said, “relationships are guided by interests, rather than personalities, and, over time, interests carry the day.”

The fundamental issue is one of trust, officials said. “We depend to a very great extent on intelligence-sharing relationships with foreign partners, mostly governments — or, in some cases, organizations within governments,” a second U.S. official said. “If they tell us something, we will keep it secret. We expect the same of them. [If that trust is undermined,] these countries, at a minimum, will be thinking twice if they’re going to share something with us or not.”

Snowden has instructed the reporters with whom he has shared records to use their judgment to avoid publishing anything that would cause harm. “I carefully evaluated every single document I disclosed to ensure that each was legitimately in the public interest,” he told the Guardian newspaper. “There are all sorts of documents that would have made a big impact that I didn’t turn over, because harming people isn’t my goal. Transparency is.”

It is those documents that may not be subject to journalistic vetting or may be breached by hackers that worry some intelligence officials. Snowden is known to have given documents in any quantity to only three journalists: The Post’s Barton Gellman, independent filmmaker Laura Poitras and former Guardian columnist Glenn Greenwald.

So far, Drake said, no such documents have been released. Snowden’s disclosures about the NSA have prompted a global debate about the proper scope and purpose of U.S. espionage — against its own and other countries’ citizens.

“I consider that a good thing,” Drake said.

By Ellen Nakashima, Published: October 24

Find this story at 24 October 2013

© The Washington Post Company

Espionage by the US on France has already strained relations between the two countries, threatening a trans-Atlantic trade agreement. Now a document seen by SPIEGEL reveals that the NSA also spied on the French Foreign Ministry.

America’s National Security Agency (NSA) targeted France’s Foreign Ministry for surveillance, according to an internal document seen by SPIEGEL.

Dated June 2010, the “top secret” NSA document reveals that the intelligence agency was particularly interested in the diplomats’ computer network. All of the country’s embassies and consulates are connected with the Paris headquarters via a virtual private network (VPN), technology that is generally considered to be secure.

Accessing the Foreign Ministry’s network was considered a “success story,” and there were a number of incidents of “sensitive access,” the document states.

An overview lists different web addresses tapped into by the NSA, among them “diplomatie.gouv.fr,” which was run from the Foreign Ministry’s server. A list from September 2010 says that French diplomatic offices in Washington and at the United Nations in New York were also targeted, and given the codenames “Wabash” and “Blackfoot,” respectively. NSA technicians installed bugs in both locations and conducted a “collection of computer screens” at the one at the UN.

A priority list also names France as an official target for the intelligence agency. In particular, the NSA was interested in the country’s foreign policy objectives, especially the weapons trade, and economic stability.

US-French relations are being strained by such espionage activities. In early July, French President François Hollande threatened to suspend negotiations for a trans-Atlantic free trade agreement, demanding a guarantee from the US that it would cease spying after it was revealed that the French embassy in Washington had been targeted by the NSA.

“There can be no negotiations or transactions in all areas until we have obtained these guarantees, for France but also for all of the European Union, for all partners of the United States,” he said at the time.

The NSA declined to comment to SPIEGEL on the matter. As details about the scope of the agency’s international spying operations continue to emerge, Washington has come under increasing pressure from its trans-Atlantic partners. Officials in Europe have expressed concern that negotiations for the trade agreement would be poisoned by a lack of trust.

09/01/2013 09:32 AM

Find this story at 1 September 2013

© SPIEGEL ONLINE 2013

The company that runs Paris’s electric car sharing scheme has filed an industrial espionage complaint against BMW, after employees alleged the German car giant sent “spies” to check out their electric cars.

Another Franco-German automobile row appears to have kicked off this week.
As the bust-up between between Mercedes and the French government rumbles on, another Franco-German automobile row appears to have kicked off this week with French company Autolib accusing BMW of “spying”.

The affair began on August 21st, when Autolib maintenance staff spotted two men they said were German, at a recharging station in Paris, fiddling with computer equipment in one of the electric vehicles, called “Blue cars”.

Later that day, the same men reportedly passed themselves off as “maintenance staff” and pretended to carry out work on one of the cars in the city’s 9th arrondissement, before slipping away.
Their suspicions raised, one of the Autolib ambassadors made a note of the license plate of one of the cars rented by the German men, cross-referenced it with rental times, and discovered that a “P3-group.com” email suffix was used to sign up online for the Autolib scheme.

P3 is an engineering firm contracted by none other than BMW to lay the groundwork for its upcoming I3 electric car model.

The following day, the alleged spies were once again seen at an Autolib station, this time in the city’s second arrondissement.

According to reports in French daily Le Figaro, when questioned by staff, the two men said they worked for BMW, before quickly leaving the scene.

This time, management at Autolib, which is run by French company Bolloré, notified the DCRI, France’s intelligence services, and told its entire staff to be on the look-out for phoney “maintenance staff”.
They were not seen again until September 5th, when they were spotted on Rue Jouffroy-d’Abbans in the seventh arrondissement.

Staff immediately called in the police, who came and arrested the two suspects.
They were questioned by BEFTI, the police’s electronic fraud division, before being released the next day.

Autolib management promptly filed a police complaint, accusing the two men of “abuse of trust,” “intrusion into a system of automated data,” and property damage, according to Le Figaro.
BMW reportedly took the step of writing to Bolloré’s CEO, Vincent Bolloré, reportedly recognizing it had dispatched staff to conduct “compatibility tests,” and apologizing for not seeking advanced permission from Bolloré.

However, in a statement released on Tuesday, BMW France denied all allegations of industrial espionage.
“In the context of the upcoming launch of the BMW I3, BMW Group is conducting routine tests across Europe, to check the compatibility of charging stations on public streets,” said the statement.
“The sole purpose of these tests is to identify networks of charging stations that electric BMW vehicles could use.”
The company confirmed it had conducted tests of this kind on August 21st, 22nd and 26th in Paris, but significantly denied it had done so on September 5th, the day the two alleged spies were arrested.
A representative from the P3 Group was not immediately available for comment when contacted by The Local on Tuesday.
Autolib, an all-electric car-sharing scheme based on the French capital’s successful bike-sharing project Velib, launched in October 2011.
Users can rent and return one of the more than 4,000 Bluecars for as little as €9 for half an hour, or as much as €120 for an annual subscription of unlimited journeys of up to 30 minutes.
Since launching in Paris, the scheme has come to the eastern city of Lyon, and is slated to arrive in Bordeaux, south-western France in November.
After that, plans are afoot to bring the all-electric car-sharing scheme to the US city of Indianapolis in 2014.

Published: 10 Sep 2013 14:25 GMT+02:00

Find this story at 10 September 2013

Copyright The Local Europe GmbH

Paris prosecutor Jean-Claude Marin on Jan. 14 began an inquiry into allegations of commercial espionage carried out against French carmaker Renault. The allegations first became public when Renault suspended three of its employees on Jan. 3 after an internal investigation that began in August 2010. Within days, citing an anonymous French government source, Reuters reported that French intelligence services were looking into the possibility that China played a role in the Renault espionage case. While the French government refused to officially confirm this accusation, speculation has run wild that Chinese state-sponsored spies were stealing electric-vehicle technology from Renault.

The Chinese are well-known perpetrators of industrial espionage and have been caught before in France, but the details that have emerged so far about the Renault operation differ from the usual Chinese method of operation. And much has been learned about this MO just in the last two years across the Atlantic, where the United States has been increasingly aggressive in investigating and prosecuting cases of Chinese espionage. If Chinese intelligence services were indeed responsible for espionage at Renault it would be one of only a few known cases involving non-Chinese nationals and would have involved the largest amount of money since the case of the legendary Larry Wu-Tai Chin, China’s most successful spy.

STRATFOR has previously detailed the Chinese intelligence services and the workings of espionage with Chinese characteristics. A look back at Chinese espionage activities uncovered in the United States in 2010, since our latest report was compiled, can provide more context and detail about current Chinese intelligence operations.

Chinese Espionage in the U.S.

We chose to focus on operations in the United States for two reasons. First, the United States is a major target for Chinese industrial espionage. This is because it is a leader in technology development, particularly in military hardware desired by China’s expanding military, and a potential adversary at the forefront of Chinese defense thinking. Second, while it is not the only country developing major new technologies in which China would be interested, the United States has been the most aggressive in prosecuting espionage cases against Chinese agents, thereby producing available data for us to work with. Since 2008, at least seven cases have been prosecuted each year in the United States against individuals spying for China. Five were prosecuted in 2007. Going back to about 2000, from one to three cases were prosecuted annually, and before that, less than one was prosecuted per year.

Most of the cases involved charges of violating export restrictions or stealing trade secrets rather than the capital crime of stealing state secrets. As the premier agency leading such investigations, the FBI has clearly made a policy decision to refocus on counterintelligence after an overwhelming focus on counterterrorism following 9/11, and its capability to conduct such investigations has grown. In 2010, 11 Chinese espionage cases were prosecuted in the United States, the highest number yet, and they featured a wide range of espionage targets.

Ten of the 11 cases involved technology acquisition, and five were overt attempts to purchase and illegally export encryption devices, mobile-phone components, high-end analog-to-digital converters, microchips designed for aerospace applications and radiation-hardened semiconductors. These technologies can be used in a wide range of Chinese industries. While the mobile-phone technology would be limited to Chinese state-owned enterprises (SOEs) such as China Mobile, the aerospace-related microchips could be used in anything from rockets to fighter jets. Xian Hongwei and someone known as “Li Li” were arrested in September 2010 for allegedly attempting to purchase those aerospace-related microchips from BAE Systems, which is one of the companies involved in the development of the F-35 Joint Strike Fighter. Similar espionage may have played a role in China’s development of the new J-20 fifth-generation fighter, but that is only speculation.

(click here to enlarge image)

Five other cases in 2010 involved stealing trade secrets. These included organic light-emitting diode processes from Dupont, hybrid vehicle technology from GM, insecticide formulas from the Dow Chemical Co., paint formulas from Valspar and various vehicle design specifications from Ford. These types of Chinese cases, while often encouraged by state officials, are more similar to industrial espionage conducted by corporations. Since many of the major car companies in China are state-run, these technologies benefit both industry and the state.

But that does not mean these efforts are directed from Beijing. History shows that such espionage activities are not well coordinated. Various Chinese company executives (who are also Communist Party officials) have different requirements for their industrial espionage. In cases where two SOEs are competing to sell similar products, they may both try to recruit agents to steal the same technology. There are also a growing number of private Chinese companies getting involved in espionage. One notable example was when Du Shanshan and Qin Yu passed on technology from GM to Chery Automobile, a private, rather than state-run, manufacturer. In the five trade-secret cases in 2010, most of the suspects were caught because of poor tradecraft. They stored data on their hard drives, sent e-mails on company computers and had obvious communications with companies in China. This is not the kind of tradecraft we would expect from trained intelligence officers. Most of these cases probably involved ad hoc agents, some of whom were likely recruited while working in the United States and offered jobs back in China when they were found to have access to important technology.

These cases show how Chinese state-run companies can have an interest in espionage in order to improve their own products, both for the success of their companies and in the national interest of China. The U.S. Department of Justice has not provided specific details on how the stolen defense-related technologies were intended to be used in China, so it is hard to tell whether they would have enhanced China’s military capability.

First-generation Chinese carried out 10 of the 11 publicized cases in the United States last year. Some were living or working temporarily in the United States, others had become naturalized American citizens (with the exception of Xian and Li, who were caught in Hungary). The Chinese intelligence services rely on ethnic Chinese agents because the services do not generally trust outsiders. When recruiting, they also use threats against family members or the individuals themselves. Second- and third-generation Chinese who have assimilated in a new culture are rarely willing to spy, and the Chinese government has much less leverage over this segment of the ethnic-Chinese population living overseas.

In the 11 cases in 2010, it is not clear what payments, if any, the agents might have received. In some cases, such as those involving the trade secrets from Valspar and Ford, the information likely helped the agents land better jobs and/or receive promotions back in China. Cash does not typically rule the effectiveness of newly recruited Chinese spies, as it might with Western recruits. Instead, new Chinese agents are usually motivated by intelligence-service coercion or ideological affinity for China.

The outlier in 2010 was Glenn Duffie Shriver, an American student with no Chinese heritage who applied to work at both the U.S. State Department and the CIA. His was the first publicized case of the Chinese trying to develop an agent in place in the United States since Larry Chin. Shriver studied in China in 2002 and 2003. The recruitment process began when he returned to China in 2004 to seek employment and improve his language capabilities. After responding to an ad for someone with an English-language background to write a political paper, Shriver was paid $120 for producing an article on U.S.-Chinese relations regarding Taiwan and North Korea.

The woman who hired him then introduced him to two Chinese intelligence officers named Wu and Tang. They paid Shriver a total of $70,000 in three payments while he tried to land a job with the U.S. government. Shriver failed the exams to become a foreign service officer and began pursuing a career with the CIA. He was accused of lying on his CIA application by not mentioning at least one trip to China and at least 20 meetings with Chinese intelligence officers. It is not clear how he was exposed, but customs records and passport stamps would have easily revealed any trips to China that he did not report in his CIA application. On Oct. 22, 2010, Shriver pleaded guilty to conspiring to provide national defense information to intelligence officers of the People’s Republic of China and was sentenced to 48 months in prison in accordance with his plea agreement.

A few Americans have been accused of being Chinese agents before, such as former Defense Department official James Fondren, who was caught and convicted in 2009. These cases are rare, though they may increase as Beijing tries to reach higher levels of infiltration. It is also possible that the FBI has been reaching only for low-hanging fruit and that Chinese espionage involving Americans at higher levels is going undetected. If this were the case, it would not be consistent with the general Chinese espionage MO.

China takes a mosaic approach to intelligence, which is a wholly different paradigm than that of the West. Instead of recruiting a few high-level sources, the Chinese recruit as many low-level operatives as possible who are charged with vacuuming up all available open-source information and compiling and analyzing the innumerable bits of intelligence to assemble a complete picture. This method fits well with Chinese demographics, which are characterized by countless thousands of capable and industrious people working overseas as well as thousands more analyzing various pieces of the mosaic back home.

Another case in 2010 was an alleged China-based cyberattack against Google, in which servers were hacked and customer account information was accessed. Last year, more than 30 other major companies reported similar infiltration attempts occurring in 2009, though we do not know how widespread the effort really is. China’s cyber-espionage capabilities are well known and no doubt will continue to provide more valuable information for China’s intelligence services.

The Renault Case

Few details have been released about the Renault case, which will likely remain confidential until French prosecutors finish their investigation. But enough information has trickled in to give us some idea of the kind of operation that would have targeted Renault’s electric-vehicle program. Three Renault managers were accused: Matthieu Tenenbaum, who was deputy director of Renault’s electric-vehicle program; Michel Balthazard, who was a member of the Renault management board; and Bertrand Rochette, a subordinate of Balthazard who was responsible for pilot projects. Various media reports — mostly from Le Figaro — claim that the State Grid Corporation of China opened bank accounts for two of the three managers (it is unknown which two). Money was allegedly wired through Malta, and Renault’s investigators found deposits of 500,000 euros (about $665,000) and 130,000 euros (about $175,000) respectively in Swiss and Liechtenstein bank accounts.

Assuming this is true, it is still unclear what the money was for. Given that the three executives had positions close to the electric-vehicle program, it seems that some related technology was the target. Patrick Pelata, Renault’s chief operating officer, said that “not the smallest nugget of technical or strategic information on the innovation plan has filtered out of the enterprise.” In other words, Renault uncovered the operation before any technology was leaked — or it is intentionally trying to downplay the damage done in order to reassure investors and protect stock prices. But Pelata also called the operation “a system organized to collect economic, technological and strategic information to serve interests abroad.”

Renault is convinced a foreign entity was involved in a sophisticated intelligence operation against the company. The question is, what foreign entity? On Jan. 13, Renault filed an official complaint with French authorities, saying it was the victim of organized industrial espionage, among other things, committed by “persons unknown.” French Industry Minister Eric Besson clarified Jan. 14 that there was no information to suggest Chinese involvement in the case, though he previously said France was facing “economic war,” presuming that the culprits came from outside France. The source for the original rumors of Chinese involvement is unclear, but the French clearly backed away from the accusation, especially after Chinese Foreign Ministry spokesman Hong Lei called the accusation “baseless and irresponsible” on Jan. 11 (of course, even if the Chinese were the culprits they would certainly not admit it).

The Chinese have definitely targeted energy-efficient motor vehicle technology in the past, in addition to the Ford and GM cases, and Renault itself is no stranger to industrial espionage activities. In 2007, Li Li Whuang was charged with breach of trust and fraudulent access to a computer system while working as a trainee at Valeo, a French automotive components manufacturer, in 2005. The 24-year-old was studying in Paris when she was offered the trainee position at Valeo. Investigators found files on her computer related to a project with BMW and another with Renault.

The new Renault case, however, is very different from most Chinese espionage cases. First, it involved recruiting three French nationals with no ethnic ties to China, rather than first-generation Chinese. Second, the alleged payments to two of three Renault employees were much larger than Chinese agents usually receive, even those who are not ethnic Chinese. The one notable exception is the case of Larry Chin, who is believed to have received more than $1 million in the 30 years he spied for China as a translator for U.S. intelligence services. Renault executives would also be paid as much or more in salaries than what was found in these bank accounts, though we don’t know if more money was transferred in and out of the accounts. This may not be unprecedented, however; STRATFOR sources have reported being offered many millions of dollars to work for the Chinese government.

Another problem is the alleged use of a Chinese state-owned company to funnel payments to the Renault executives. Using a company traceable not only to China but to the government itself is a huge error in tradecraft. This is not likely a mistake that the Chinese intelligence services would make. In Chin’s case, all payments were made in cash and were exchanged in careful meetings outside the United States, in places where there was no surveillance.

Thus, STRATFOR doubts that the Renault theft was perpetrated by the Chinese. The leak suggesting otherwise was likely an assumption based on China’s frequent involvement in industrial espionage. Still, it could be a sign of new methods in Chinese spycraft.

Higher-level Recruitment?

The Shriver and Renault cases could suggest that some Chinese intelligence operations are so sophisticated that counterintelligence officers are unaware of their activities. They could mean that the Chinese are recruiting higher-level sources and offering them large sums of money. Chin, who got his start working for the U.S. Army during the Korean War, remained undetected until 1985, when a defector exposed him. There may be others who are just as well hidden. However, according to STRATFOR sources, including current and former counterintelligence officers, the vast majority of Chinese espionage operations are perpetrated at low levels by untrained agents.

There is little indication that the Chinese have switched from the high-quantity, low-quality mosaic intelligence method, and cyber-espionage activities such as hacking Google demonstrate that the mosaic method is only growing. The Internet allows China to recruit from its large base of capable computer users to find valuable information in the national interest. It provides even more opportunities to vacuum up information for intelligence analysis. Indeed, cyber-espionage is being used as another form of “insurance,” a way to ensure that the information collected by the intelligence services from other sources is accurate.

If China is responsible for the Renault penetration, the case would represent a change in the Chinese espionage MO, one aiming at a higher level and willing to spend more money, even though most of the cases prosecuted in the United States pointed to a continuation of the mosaic paradigm. Nevertheless, counterintelligence officers are likely watching carefully for higher-level recruits, fearing that others like Chin and Shriver may have remained undetected for years. These cases may be an indication of new resources made available to Western counterintelligence agencies and not new efforts by the Chinese.

One thing is certain: Chinese espionage activities will continue apace in 2011, and it will be interesting to see what targets are picked.

Security Weekly
THURSDAY, JANUARY 20, 2011 – 03:53 Print Text Size
By Sean Noonan

Find this story at 20 January 2011

Copyright © 2014 Stratfor

The French president has asked the intelligence service to investigate suspected industrial spying at Renault.

The French carmaker has suspended three senior managers after an investigation into the possible leaking of electric vehicle secrets to rivals.

The firm has said industrial espionage poses a serious threat to its “strategic assets”.

The French industry minister has described the case of Renault, which is 15% state-owned, as “economic warfare”.

The right-leaning Le Figaro newspaper reported that, according to several sources, the information passed on relates to the technology in the battery and the engine of electrical vehicles that will be rolled out after 2012.

Advanced technology

The three executives suspended are alleged to have sold new patents not yet registered to one or several intermediaries specialising in economic intelligence.

One of the three – who have all been given the opportunity to respond to the charges made against them, before any sanctions are imposed – is a member of the carmaker’s management committee.

Continue reading the main story
Analysis

image of Mark Gregory
Mark Gregory
BBC News
The incident comes at a time of rising concern in Europe and America about protecting intellectual property rights.

The picture emerging from French media reports is that the three suspended executives may have leaked details of battery and engine technologies developed for Renault’s new generation of electric cars.

Whether or not the allegations are true, they have touched a raw nerve. Western firms are worried about rivals in emerging economies grabbing their best ideas without paying for them.

The issue is becoming more serious as China and other new industrial powers become more sophisticated in what they produce.

Stories about stolen industrial secrets will probably become more frequent as competition between old industrial powers and new ones intensifies.

The BBC’s Christian Fraser, in Paris, says that it is a mark of how seriously the French government is taking this breach of trust that it has asked the intelligence service to investigate.

Car manufacturing is an important part of the French economy, and a major employer, our correspondent says.

One of the biggest advantages that Western carmakers have is their advanced technology, which enables them to compete against cheaper labour costs outside Europe.

According to sources within Renault it is suspected the final recipient of this information was likely to have been a Chinese rival.

“We cannot accept that an innovation financed by the French taxpayer ends up in the hands of the Chinese,” one, anonymous industry ministry source told Agence France Presse.

The carmaker, alongside its partner Nissan, has invested heavily in electric vehicle technology.

Both plan to launch a number of new electric vehicles over the next two years.

7 January 2011

Find this story at 7 January 2011

BBC © 2014

‘The policy was devised in secret … within the confines of the Africa Unit. At its heart was François Mitterrand.’ Photograph: Brian Harris/The Independent/REX

The trial this week of a Rwandan genocide suspect in a Paris courtroom is a well-earned victory for the French human rights groups who lobbied so hard and so long for justice. The milestone trial signals the end of France as a safe haven for génocidaries. But more than this, the trial is likely to see intense public scrutiny of one of the great scandals of the past century – the role of France in the 1994 genocide of the Tutsi of Rwanda, which for 20 years journalists and activists have tried so hard to expose.

Pascal Simbikangwa, the defendant in Paris, is said to have been a member of an inner circle of power in Rwanda that devised genocide as a planned political campaign. Developed by Hutu ideologues, it was intended to prevent a power-sharing system of government that was to include the minority Tutsi. The genocide claimed up to a million lives.

A captain in the Rwandan gendarmerie until 1986, when he was paralysed in a car accident, Simbikangwa – a fanatic who hoped to create what was known as “a pure Hutu state” – worked for the security services in the capital Kigali. He was eventually found hiding out in the French department of Mayotte, an island group in the Indian Ocean, with 3,000 forged identity papers – more than enough for the hundreds of Rwandan fugitives still at large. He denies all the charges, and his lawyer says he is a scapegoat.

Until now there has been a complete absence of will in Paris to bring to justice any of the estimated 27 Rwandan genocide fugitives who live on French soil. The country was a staunch ally of the Rwandan government which planned and perpetrated the genocide. The trial may well show the French electorate just how appalling its secret policy towards the central African state really was.

The policy was devised in secret, with no accountability from press or parliament and largely determined within the confines of a special office in the president’s Elysée Palace known as the Africa Unit. It operated through a network of military officers, politicians, diplomats, businessmen and senior intelligence operatives. At its heart was President François Mitterrand, who had operated through senior army officers: General Christian Quesnot, Admiral Jacques Lanxade and General Jean-Pierre Huchon.

The prosecution testimony in the trial will be unprecedented in the detail it will provide about the genocide. The evidence combines the results of investigations into the Simbikangwa case at the international criminal tribunal for Rwanda (ICTR), and details from investigations carried by Rwandan authorities. Never before, not even in the courtrooms of the ICTR, has such an impressive array of witnesses assembled. It is hoped that their combined testimony will put paid to a campaign of denial waged by defence lawyers at the ICTR who claimed the killing in Rwanda was not the result of a conspiracy but was somehow “spontaneous”.

Simbikangwa’s prosecutors are concentrating on his role during the killing, when he allegedly encouraged the murder of Tutsi by Interahamwe militia on roadblocks and provided them with weapons. The roadblocks and the Interahamwe were an integral part of the planned killing mechanism and ensured the speed and scale of the slaughter.

But the impact of the Simbikangwa trial will be felt far beyond the courtroom. It is hoped that for the French public the nature of the genocide will be laid bare, and that at long last a debate about France and Rwanda will begin. Twenty years too late, a true reckoning may at last be possible.

Linda Melvern
The Guardian, Wednesday 5 February 2014 19.11 GMT

Find this story at 5 February 2014

© 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved.

President acknowledges that ‘errors’ were made but stops short of formal apology

President Nicolas Sarkozy admitted yesterday that French “errors” had contributed to the Rwandan genocide which killed an estimated 800,000 people in 1994.

On the first visit by a French leader to Rwanda for 25 years, Mr Sarkozy did not formally apologise. Nor did he accept allegations that France had played an active role in training and arming the Hutu militias and troops who led massacres of Tutsis and moderate Hutus.

But he suggested that the entire international community – and France in particular – should accept that its response had been culpably weak. “What happened here is a defeat for humanity,” Mr Sarkozy said. “What happened here left an indelible stain. What happened here obliges the international community – including France – to reflect on the errors which prevented us from foreseeing, or stopping, this appalling crime.”

Previously France has always insisted that it could not have foreseen the genocide and that the intervention of its troops helped to save many Hutu and Tutsi lives. Mr Sarkozy’s visit to Kigali, and joint press conference with the Rwandan President Paul Kagame, were the most dramatic symbols to date of efforts to repair relations. Diplomatic ties were restored in November, three years after they were severed amid mutual recriminations and allegations.

In 2006, a French investigating judge issued international arrest warrants for eight Tutsi officials close to President Kagame, suggesting that they had deliberately provoked the genocide of their own people by assassinating a moderate Hutu president in May 1994. The accusations brought renewed allegations from Mr Kagame’s Tutsi-dominated government that France had armed and trained Hutu militias and soldiers knowing that genocidal attacks were likely or possible.

In 1998, a French parliamentary investigation rejected these accusations but admitted that the late President François Mitterrand and the then centre-right government in France had been blinded by supposed French interests in the region into siding with radical, and eventually murderous, Hutu groups.

The eight arrest warrants against Kagame aides are still active but the Rwandan government now accepts that they were drawn up by an independent investigating magistrate and not the French government.

Before his press conference with President Kagame, Mr Sarkozy was taken on a tour of Kigali’s genocide museum. On two occasions, the official guide made references to alleged French complicity in the massacres, including a photograph of a French military vehicle driving past armed Hutu civilians. President Sarkozy ignored the remarks.

He later placed a wreath on a memorial to the dead and said that “in the name of the people of France” he “bowed” to “victims of the genocide of the Tutsis”. “Errors of appreciation, political errors, were committed here which had consequences which were absolutely tragic,” Mr Sarkozy said. Although he spoke of the cumulative guilt of the international community, the implication was clear. France was – for the first time – admitting that its own actions had contributed to the calamity.

On his way to Rwanda, Mr Sarkozy visited Gabon and made an unscheduled stop in Mali to greet a French aid worker, Pierre Camatte, released this week after almost three months as the hostage of an extreme Islamist group.

By John Lichfield in Paris
Friday, 26 February 2010

Find this story at 26 February 2010

© independent.co.uk

Is the defendant’s dock at the International Criminal Court reserved for leaders of small and poor countries that defy the West? Not if Rwanda has its way. It wants to charge some of France’s most celebrated leaders of the 1990s as collaborators in genocide.

Last week the government of Rwanda issued a damning 500-page report documenting France’s participation in the 1994 Rwandan genocide. This marks a remarkable turnaround in the deeply politicized world of human rights reporting. Usually, such reporting takes the form of governments or human rights groups based in the West condemning poor countries for having political or social systems that do not meet Western standards.

Now a wretched African country has turned the table.

All who study the Rwandan genocide, as I did while researching a book about that ill-fated country, come away stunned by what they learn about French support of mass murder. France was so eager to defend a client regime against English-speaking rebels that, as the new report asserts, it gave that regime “political, military, diplomatic and logistic support” and “directly assisted” its genocidal campaign.

The report names 33 present and former French politicians and military officers as conspirators, among them the late President François Mitterrand and other well-known figures like former foreign minister Alan Juppé and former prime minister Dominique de Villepin.

The report, commissioned by the government and prepared by a panel that heard from more than 150 witnesses, is not only a devastating account of France’s eager participation in mass murder. It is also the most provocative example in modern history of a victimized nation pointing a credible finger of blame at the supposedly virtuous West.

France armed Rwanda’s murderous regime, sent soldiers to support it as the genocide was unfolding, and accepted some of its most heinous perpetrators as “refugees” after rebels forced them from power. Later, France helped the genocidaires regroup in the Congo and launch a savage cross-border campaign aimed at retaking power so they could complete their murderous work.

Even as the genocide was unfolding, reports of France’s support for it began appearing in French newspapers. French soldiers who arrived in Rwanda believing that they had come to protect victims soon realized that they were, in fact, protecting killers, and several communicated their disgust to French journalists.

In 1995, President Jacques Chirac of France made a remarkably honest confession of his nation’s guilt. “France … delivered protected people to their horrors. These dark hours have sullied our history forever and are an insult to our past and our traditions.”

Unfortunately Chirac was not speaking about Rwanda, but about France’s delivery of French Jews to the Nazi murder machine during World War II. His statement suggests that it takes nations at least half a century before they can apologize for their misdeeds. Doctors Without Borders declared in 1998 that it was “high time the French government broke its traditional silence on its shameful role in the genocide.”

Foreign Minister Juppé responded indignantly that no one could question the “good intentions of our humanitarian intervention of that era,” and that the government would not consent to “investigating an action we should be proud of.”

Parliament eventually did convene an investigation, but it predictably absolved France of all guilt.

France, though, has never forgiven the Rwandan president, Paul Kagame, for deposing a French-backed regime and pulling Rwanda out of the Francophonie. In 2006 a French judge charged Kagame with assassinating his predecessor; Rwanda responded by breaking diplomatic relations with France.

The report last week is another volley in what has become one of the world’s most bitter diplomatic battles.

A spokesman for the French Foreign Ministry rejected the Rwandan report as “unacceptable.” That was a mistake. The report should be an occasion for French leaders to reflect on their country’s history in ways Western nations seldom do. Perhaps they could even break with the longstanding pattern of denial that has shaped so much of modern history.

Like all countries, France is built on national myths. If it can admit the evil that has pervaded its role in Africa, perhaps other countries could follow by confronting the sins of their past. That would be an admission that people who, in Joseph Conrad’s words, “have a different complexion or slightly flatter noses than ourselves” are not the only ones guilty of the 20th century’s great crimes.

Stephen Kinzer is author of “A Thousand Hills: Rwanda’s Rebirth and the Man Who Dreamed It.”

By Stephen Kinzer

Find this story at 15 August 2008

Copyright 2009 The New York Times Company

Rwanda has accused France of playing an active role in the genocide of 1994, in which about 800,000 people were killed.

An independent Rwandan commission said France was aware of preparations for the genocide and helped train the ethnic Hutu militia perpetrators.

The report also accused French troops of direct involvement in the killings.

It named 33 senior French military and political figures that it said should be prosecuted. France has previously denied any such responsibility.

Among those named in the report were the late former President, Francois Mitterrand, and the then Prime Minister Edouard Balladur.

Two men who went on to become prime minister were also named – Alain Juppe, the foreign minister at the time, and his then chief aide, Dominique de Villepin.

The French foreign ministry told the BBC it would only respond to the fresh allegations after reading the report, which was released on Tuesday afternoon.

Checkpoints

Earlier this year France’s Foreign Minister Bernard Kouchner denied French responsibility in connection with the genocide, but said political errors had been made.
The Rwandan government has urged the relevant authorities to bring the accused French politicians and military officials to justice

Rwandan justice ministry

Report raises issue of motive

Some 800,000 minority Tutsis and moderate Hutus were slaughtered by Hutu militias in just 100 days in 1994.

The report says France backed Rwanda’s Hutu government with political, military, diplomatic and logistical support.

It accuses France of training Hutu militias responsible for the slaughter, helping plan the genocide, and participating in the killings.

“French forces directly assassinated Tutsis and Hutus accused of hiding Tutsis… French forces committed several rapes on Tutsi survivors,” said a statement from the justice ministry cited by AFP news agency.

“Considering the seriousness of the alleged crimes, the Rwandan government has urged the relevant authorities to bring the accused French politicians and military officials to justice,” the statement said.

It further alleged that French forces did nothing to challenge checkpoints used by Hutu forces in the genocide.

“They clearly requested that the Interahamwes continue to man those checkpoints and kill Tutsis attempting to flee,” it said.

Testimonies

The BBC’s Geoffrey Mutagoma in the Rwandan capital, Kigali, says the commission spent nearly two years investigating France’s alleged role in the genocide.

It heard testimonies from genocide survivors, researchers, writers and reporters.

The 500-page document was presented to the Rwanda’s government last November, but was not made public until now.

Rwanda has repeatedly accused France of arming and training the Hutu militias that perpetrated the genocide, and of dragging its feet in co-operating with the investigations that followed.

France has maintained that its forces helped protect civilians during a UN-sanctioned mission in Rwanda at the time.

The two countries have had a frosty relationship since 2006 when a French judge implicated Rwandan President Paul Kagame in the downing in 1994 of then-President Juvenal Habyarimana’s plane – an event widely seen as triggering the killings.

President Kagame has always denied the charge.

He says Mr Habyarimana, a Hutu, was killed by Hutu extremists who then blamed the incident on Tutsi rebels to provide the pretext for the genocide.

Page last updated at 17:25 GMT, Tuesday, 5 August 2008 18:25 UK

Find this story at 5 August 2008

BBC © 2013

The shambolic Olympic security firm G4S is bidding for the right to print Britain’s banknotes, it emerged last night.
The embattled group has teamed up with a French company to try to get its hands on the lucrative £1billion contract.
Currently the work is done by the British firm De La Rue, which was first commissioned to print UK banknotes at the outbreak of the First World War.
G4S, which has faced calls to be barred from public work after a string of scandals, wants to take over the contract
Now G4S, which has faced calls to be barred from public work after a string of scandals, wants to take over the contract.
It has joined forces with France’s Oberthur Technologies, which would take control of the printing process itself.
Labour MP Keith Vaz, who has called for the company to be blacklisted from future taxpayer contracts, demanded G4S pull out of the bidding.
He said: ‘G4s have failed the public on numerous occasions.
‘At a recent public meeting Jon Shaw, a G4S director, agreed with the Home Affairs Select Committee that companies that fail to deliver on public contracts should be on a high risk register.
The group faced public outrage last summer when it failed to provide enough guards for the Olympic venues. The army was drafted in to make up the shortfall
‘In light of this they should withdraw their application for this important contract until they have got their house in order.’
Before 2003 the Bank of England managed its own banknote printing.
In 2003 the Bank gave the work to De La Rue, which has held the contract for ten years.
Now it is has put the job out to tender.
The winning company will be responsible for printing notes from 2015 to 2025, with the possibility of extending the work even further to 2028.
But even if G4S and its Franco partner win, they will have to print the notes in the UK.
Any successful company can only print the notes using the Bank’s secure printing works in Debden in the Epping Forest.
From there the notes are taken securely to the Bank’s cash distribution centres around the country.
The Bank has issued paper banknotes ever since the central bank was created in 1694 as a way of raising money for King William III’s war against France.
But now it is planning to issue plastic notes, which can survive a spin in the washing machine.
Polymer banknotes, as well as being hard to fake, are durable and stay cleaner for longer because the material is more resistant to dirt and moisture.
Whichever firm wins the contract will have to be able to produce them as well as paper notes, the Bank has said.
Current provider De La Rue entered the plastic banknote market earlier this year with deals to supply Fiji and Mauritius.
G4S has been embroiled in a number of public blunders over the last 18 months.
The group faced public outrage last summer when it failed to provide enough guards for the Olympic venues.
The army was drafted in to make up the shortfall, and G4S was forced to pay compensation.
In July the company was accused of charging taxpayers for electronic tags on prisoners who were either dead, in jail or had left the country.
Ministers said they would review the company’s entire portfolio of government work – worth almost £1billion a year.
The blunders happened on the watch of flamboyant boss Nick Buckles, who was forced to resign earlier this year after a humiliating warning that the company’s profits would fall short of expectations.
G4S refused to comment last night. The Bank of England also refused to comment.
By Peter Campbell
PUBLISHED: 01:11 GMT, 27 September 2013 | UPDATED: 13:31 GMT, 27 September 2013
Find this story at 27 September 2013
© Associated Newspapers Ltd

Millions of phone records at the center of a firestorm in Europe over spying by the National Security Agency were secretly supplied to the U.S. by European intelligence services—not collected by the NSA, upending a furor that cast a pall over trans-Atlantic relations.

Widespread electronic spying that ignited a political firestorm in Europe was conducted by French and European intelligence services and not by the National Security Agency, as was widely reported in recent days. Adam Entous reports on the News Hub. Photo: AP.

The revelations suggest a greater level of European involvement in global surveillance, in conjunction at times with the NSA. The disclosures also put European leaders who loudly protested reports of the NSA’s spying in a difficult spot, showing how their spy agencies aided the Americans.

The phone records collected by the Europeans—in war zones and other areas outside their borders—were shared with the NSA as part of efforts to help protect American and allied troops and civilians, U.S. officials said.

European leaders remain chagrined over revelations that the U.S. was spying on dozens of world leaders, including close allies in Europe. The new disclosures were separate from those programs.

But they nevertheless underline the complexities of intelligence relationships, and how the U.S. and its allies cooperate in some ways and compete in others.
More
NSA Said to View 23 Countries Closer U.S. Intelligence Partners Than Israel
Senate to Review All U.S. Spying
Spying Revelations Add Hurdle to U.S.-EU Trade Talks
Germany Warns of Repercussions from U.S. Spying
Obama Unaware as NSA Spied on World Leaders

“That the evil NSA and the wicked U.S. were the only ones engaged in this gross violation of international norms—that was the fairy tale,” said James Lewis, a former State Department official, now a technology-policy specialist at the Center for Strategic and International Studies. “It was never true. The U.S’s behavior wasn’t outside the norm. It is the norm.”

Consecutive reports in French, Spanish and Italian newspapers over the past week sparked a frenzy of finger-pointing by European politicians. The reports were based on documents leaked by former NSA contractor Edward Snowden and purportedly showed the extent to which the NSA sweeps up phone records in those countries.

France’s Le Monde said the documents showed that more than 70 million French phone records between early December 2012 and early January 2013 were collected by the NSA, prompting Paris to lodge a protest with the U.S. In Spain, El Mundo reported that it had seen NSA documents that showed the U.S. spy agency had intercepted 60.5 million Spanish phone calls during the same time period.

U.S. officials initially responded to the reports by branding them as inaccurate, without specifying how. On Tuesday, The Wall Street Journal reported that the data cited by the European news reports wasn’t collected by the NSA, but by its European partners.

U.S. officials said the data was provided to the NSA under long-standing intelligence sharing arrangements.

In a congressional hearing Tuesday, the National Security Agency director, Gen. Keith Alexander, confirmed the broad outlines of the Journal report, saying that the specific documents released by Mr. Snowden didn’t represent data collected by the NSA or any other U.S. agency and didn’t include records from calls within those countries.
Phone Trouble

Politicians have reacted to recent disclosures about U.S. surveillance programs based on leaks from former National Security Agency contractor Edward Snowden.
View Graphics

He said the data—displayed in computer-screen shots—were instead from a system that contained phone records collected by the U.S. and North Atlantic Treaty Organization countries “in defense of our countries and in support of military operations.”

He said the conclusion that the U.S. collected the data “is false. And it’s false that it was collected on European citizens. It was neither.”

The U.S. until now had been silent about the role of European partners in these collection efforts so as to protect the relationships.

French officials declined to comment.

A Spanish official said that Spain’s intelligence collaboration with the NSA has been limited to theaters of operations in Mali, Afghanistan and certain international operations against jihadist groups. The so-called metadata published in El Mundo was gathered during these operations, not in Spain.

The Italian Embassy in Washington didn’t immediately respond to a request for comment.

The revelations that the phone data were collected by European intelligence services rather than NSA could spark a backlash against the same politicians who had been pointing their fingers at the U.S.—although that response could be tempered by assurances that the data were collected abroad and not domestically.

A U.S. analysis of the document published by Le Monde concluded the phone records the French had collected were actually from outside of France, then were shared with the U.S. The data don’t show that the French spied on their own people inside France.

U.S. intelligence officials said they hadn’t seen the documents cited by El Mundo, but that the data appear to come from similar information the NSA obtained from Spanish intelligence agencies documenting their collection efforts abroad.

At Tuesday’s House Intelligence Committee hearing, lawmakers also pressed Gen. Alexander and the Director of National Intelligence James Clapper on the NSA’s tapping of world leaders’ phone conversations, including German Chancellor Angela Merkel.

Asked whether U.S. allies spy on the U.S., Mr. Clapper said, “Absolutely.”

Rep. Adam Schiff (D., Calif.) asked why Congress hadn’t been informed when U.S. spies tapped a world leader’s telephone. Mr. Clapper said Congress isn’t told about each and every “selector,” the intelligence term for a phone number or other information that would identify an espionage target.

“Not all selectors are equal,” Mr. Schiff responded, especially “when the selector is the chancellor of an allied nation.”

The Wall Street Journal reported Monday that President Barack Obama didn’t know about NSA’s tapping of Ms. Merkel’s phone—which stretched back as far as 2002—until a review this summer turned it up.

Mr. Clapper said that intelligence agencies follow the priorities set by the president and key departments, but they don’t necessarily provide top officials with details on how each requirement is being fulfilled.

The White House does, however, see the final product, he said.

Reporting to policy makers on the “plans and intentions” of world leaders is a standard request to intelligence agencies like the NSA, Mr. Clapper said. The best way to understand a foreign leader’s intentions, he said, is to obtain that person’s communications.

Privately, some intelligence officials disputed claims that the president and top White House officials were unaware of how such information is obtained.

“If there’s an intelligence report that says the leader of this country is likely to say X or Y, where do you think that comes from?” the official said.

The House Intelligence Committee chairman, Rep. Mike Rogers (R., Mich.) remained a staunch defender of the NSA’s operations.

“I am a little concerned about where we are—that we’ve decided that we’re going to name our intelligence services at the earliest opportunity as the bad guys in the process of trying to collect information lawfully and legally, with the most oversight that I’ve ever seen,” he said. “We’re the only intelligence service in the world that is forced to go to a court before they even collect on foreign intelligence operations, which is shocking to me.”

—Christopher Bjork in Madrid and Stacy Meichtry in Paris contributed to this article.

By Adam Entous and Siobhan Gorman connect
Updated Oct. 29, 2013 7:31 p.m. ET

Find this story at 29 October 2013

©2013 Dow Jones & Company, Inc.

The NSA says European spy services shared phone data with it, and reports alleging otherwise are ‘false’.

MILLIONS of phone records at the centre of a firestorm in Europe over spying by the National Security Agency were secretly supplied to the US by European intelligence services – not collected by the NSA, upending a furore that cast a pall over trans-Atlantic relations.

The revelations suggest a greater level of European involvement in global surveillance, in conjunction at times with the NSA. The disclosures also put European leaders who loudly protested reports of the NSA’s spying in a difficult spot, showing how their spy agencies aided the Americans.

The phone records collected by the Europeans – in war zones and other areas outside their borders – were shared with the NSA as part of efforts to help protect American and allied troops and civilians, US officials said.

European leaders remain chagrined over revelations that the US was spying on dozens of world leaders, including close allies in Europe.

The new disclosures were separate from those programs, but they underline the complexities of intelligence relationships, and how the US and its allies co-operate in some ways and compete in others.

“That the evil NSA and the wicked US were the only ones engaged in this gross violation of international norms -that was the fairy tale,” said James Lewis, a former State Department official, now a technology-policy specialist at the Centre for Strategic and International Studies.

“It was never true. The US’s behaviour wasn’t outside the norm. It is the norm.”

Consecutive reports in French, Spanish and Italian newspapers over the past week sparked a frenzy of finger-pointing by European politicians. The reports were based on documents leaked by former NSA contractor Edward Snowden and purportedly showed the extent to which the NSA sweeps up phone records in those countries.

France’s Le Monde said the documents showed that more than 70 million French phone records between early December last year and early January this year were collected by the NSA, prompting Paris to lodge a protest with the US. In Spain, El Mundo reported that it had seen NSA documents that showed the US spy agency had intercepted 60.5 million Spanish phone calls during the same time period.

US officials initially responded to the reports by branding them as inaccurate, without specifying how. Late yesterday, The Wall Street Journal reported that the data cited by the European news reports wasn’t collected by the NSA but by its European partners.

US officials said the data was provided to the NSA under long-standing intelligence sharing arrangements.

Hours later, in a congressional hearing, the National Security Agency director, General Keith Alexander, confirmed the broad outlines of the Journal report, saying the specific documents released by Mr Snowden didn’t represent data collected by the NSA or any other US agency and didn’t include records from calls within those countries.

He said the data, displayed in computer-screen shots, was instead from a system that contained phone records collected by the US and NATO countries “in defence of our countries and in support of military operations”.

He said conclusions the US collected the data were “false. And it’s false that it was collected on European citizens. It was neither.”

The US until now had been silent about the role of European partners in these collection efforts to protect the relationships. French officials declined to comment.

A Spanish official said Spain’s intelligence collaboration with the NSA has been limited to theatres of operations in Afghanistan, Mali and international operations against jihadist groups. The data published in El Mundo was gathered during these operations, not in Spain.

At yesterday’s house intelligence committee hearing, politicians pressed General Alexander and Director of National Intelligence James Clapper on the NSA’s tapping of world leaders’ phone conversations, including the German Chancellor, Angela Merkel.

Asked whether US allies spy on the US, Mr Clapper said: “Absolutely.”

Democrat congressman Adam Schiff asked why congress had not been informed when US spies tapped a world leader’s telephone.

Mr Clapper said congress wasn’t told about each and every “selector”, the intelligence term for a phone number or other information that would identify an espionage target.

“Not all selectors are equal,” Mr Schiff responded, especially “when the selector is the chancellor of an allied nation.”

Mr Clapper said intelligence agencies followed the priorities set by the President and key departments, but did not necessarily provide top officials with details on how each requirement was being fulfilled.

The White House did, however, see the final product, he said.

Reporting to policymakers on the “plans and intentions” of world leaders was a standard request to intelligence agencies such as the NSA, Mr Clapper said, and the best way to understand a foreign leader’s intentions was to obtain their communications.

Privately, some intelligence officials disputed claims that the President and top White House officials were unaware of how such information was obtained.

“If there’s an intelligence report that says the leader of this country is likely to say X or Y, where do you think that comes from?” the official said

Adam Entous and Siobhan Gorman
The Wall Street Journal
October 31, 2013 12:00AM

Find this story at 31 October 2013

© www.theaustralian.com.au

Spain and France’s intelligence agencies carried out collection of phone records and shared them with NSA, agency says

European intelligence agencies and not American spies were responsible for the mass collection of phone records which sparked outrage in France and Spain, the US has claimed.

General Keith Alexander, the head of the National Security Agency, said reports that the US had collected millions of Spanish and French phone records were “absolutely false”.

“To be perfectly clear, this is not information that we collected on European citizens,” Gen Alexander said when asked about the reports, which were based on classified documents leaked by Edward Snowden, the former NSA contractor.

Shortly before the NSA chief appeared before a Congressional committee, US officials briefed the Wall Street Journal that in fact Spain and France’s own intelligence agencies had carried out the surveillance and then shared their findings with the NSA.

The anonymous officials claimed that the monitored calls were not even made within Spanish and French borders and could be surveillance carried on outside of Europe.
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In an aggressive rebuttal of the reports in the French paper Le Monde and the Spanish El Mundo, Gen Alexander said “they and the person who stole the classified data [Mr Snowden] do not understand what they were looking at” when they published slides from an NSA document.

The US push back came as President Barack Obama was said to be on the verge of ordering a halt to spying on the heads of allied governments.

The White House said it was looking at all US spy activities in the wake of leaks by Mr Snowden but was putting a “special emphasis on whether we have the appropriate posture when it comes to heads of state”.

Mr Obama was reported to have already halted eavesdropping at UN’s headquarters in New York.

German officials said that while the White House’s public statements had become more conciliatory there remained deep wariness and that little progress had been made behind closed doors in formalising an American commitment to curb spying.

“An agreement that you feel might be broken at any time is not worth very much,” one diplomat told The Telegraph.

“We need to re-establish trust and then come to some kind of understanding comparable to the [no spy agreement] the US has with other English speaking countries.”

Despite the relatively close US-German relations, the White House is reluctant to be drawn into any formal agreement and especially resistant to demands that a no-spy deal be expanded to cover all 28 EU member states.

Viviane Reding, vice-president of the European Commission and EU justice commissioner, warned that the spying row could spill over and damage talks on a free-trade agreement between the EU and US.

“Friends and partners do not spy on each other,” she said in a speech in Washington. “For ambitious and complex negotiations to succeed there needs to be trust among the negotiating partners. It is urgent and essential that our US partners take clear action to rebuild trust.”

A spokesman for the US trade negotiators said it would be “unfortunate to let these issues – however important – distract us” from reaching a deal vital to freeing up transatlantic trade worth $3.3 billion dollars (£2bn) a day.

James Clapper, America’s top national intelligence, told a Congressional hearing yesterday the US does not “spy indiscriminately on the citizens of any country”.

“We do not spy on anyone except for valid foreign intelligence purposes, and we only work within the law,” Mr Clapper said. “To be sure on occasions we’ve made mistakes, some quite significant, but these are usually caused by human error or technical problems.”

Pressure from European leaders was added to as some of the US intelligence community’s key Congressional allies balked at the scale of surveillance on friendly governments.

Dianne Feinstein, the chair of powerful Senate intelligence committee, said she was “totally opposed” to tapping allied leaders and called for a wide-ranging Senate review of the activities of US spy agencies.

“I do not believe the United States should be collecting phone calls or emails of friendly presidents and prime ministers,” she said.

John Boehner, the Republican speaker of the house and a traditional hawk on national security, said US spy policy was “imbalanced” and backed calls for a review.

Mr Boehner has previously been a staunch advocate of the NSA and faced down a July rebellion by libertarian Republicans who tried to pass a law significantly curbing the agency’s power.

By Raf Sanchez, Peter Foster in Washington

8:35PM GMT 29 Oct 2013

Find this story at 29 October 2013

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