America’s NSA and Britain’s GCHQ are both spying on the OPEC oil cartel, documents from whistleblower Edward Snowden reveal. The security of the global energy supply is one of the most important issues for the intelligence agencies.

Documents disclosed by whistleblower Edward Snowden reveal that both America’s National Security Agency (NSA) and Britain’s Government Communications Headquarters (GCHQ) have infiltrated the computer network of the the Organization of the Petroleum Exporting Countries (OPEC).

In January 2008, the NSA department in charge of energy issues reported it had accomplished its mission. Intelligence information about individual petroleum-exporting countries had existed before then, but now the NSA had managed, for the first time, to infiltrate OPEC in its entirety.

OPEC, founded in 1960, has its headquarters in a box-like building in Vienna. Its main objective is to control the global oil market, and to keep prices high. The 12 member states include Saudi Arabia, Venezuela, Iran and Iraq.

A Treasure Trove of Information

When the NSA used the Internet to infiltrate OPEC’s computers, its analysts discovered an internal study in the OPEC Research Division. It stated that OPEC officials were trying to cast the blame for high oil prices on speculators. A look at files in the OPEC legal department revealed how the organization was preparing itself for an antitrust suit in the United States. And a review of the section reserved for the OPEC secretary general documented that the Saudis were using underhanded tactics, even within the organization. According to the NSA analysts, Riyadh had tried to keep an increase in oil production a secret for as long as possible.

Saudi Arabia’s OPEC governor is also on the list of individuals targeted for surveillance, for which the NSA had secured approval from the secret Foreign Intelligence Surveillance Court. The documents show how careful the Americans were to suspend their surveillance when the Saudi visited the United States. But as soon as he had returned to Riyadh, the NSA analysts began infiltrating his communications once again.

Praise from Department of Energy

According to a 2010 report, one of the analysts’ conclusions was that the Saudis had released incorrect oil production figures. The typical “customers” for such information were the CIA, the US State Department and the Department of Energy, which promptly praised the NSA for confirming what it had suspected for years.

The British, who also targeted OPEC’s Vienna headquarters, were at least as successful as the NSA. A secret GCHQ document dating from 2010 states that the agency had traditionally had “poor access” to OPEC. But that year, after a long period of meticulous work, it had managed to infiltrate the computers of nine OPEC employees by using the “Quantum Insert” method, which then creates a gateway to gain access into OPEC’s computer system. GCHQ analysts were even able to acquire administrator privileges for the OPEC network and gain access to two secret servers containing “many documents of interest.”

OPEC appears in the “National Intelligence Priorities Framework,” which the White House issues to the US intelligence community. Although the organization is still listed as an intelligence target in the April 2013 list, it is no longer a high-priority target. Now that the United States is less dependent on Saudi petroleum, thanks to fracking and new oil discoveries, the fact that OPEC is not identified as a top priority anymore indicates that interest in the organization has declined.

11/11/2013 12:05 AM
By SPIEGEL Staff

Find this story at 11 November 2013

© SPIEGEL ONLINE 2013

An apology is the least Indonesia can expect from Australia following revelations of electronic spying, according to Greens Senator Scott Ludlam.

BHP was among the companies helped by Australian spy agencies as they negotiated trade deals with Japan, a former Australian Secret Intelligence Service officer says.

A former diplomat has also confirmed Australian intelligence agencies have long targeted Japanese companies. Writing in The Japan Times, Professor Gregory Clark said Australian companies were beneficiaries of intelligence operations.

“In Australia, favoured firms getting spy material on Japanese contract policies and other business negotiations used to joke how [it had] ‘fallen off the back of a truck’,” Professor Clark wrote.

“BHP knew we were giving them secret intelligence. They lapped it up.”

Business information is a main target for [intelligence] agencies, he said. “The targeting is also highly corrupting since the information can be passed on selectively to co-operative firms – often firms that provide employment and cover for spy operatives.”
Professor Clark’s observations are supported by a former Australian Secret Intelligence Service officer who said that commercial information became a priority after the global economic turmoil of the 1970s.

“Suddenly [the Australian government] wanted to know what the demand would be for Australian iron ore and other commodities, and just what price the Japanese were prepared to pay for steel,” the former intelligence officer said.

“We gave market information [to] major companies like BHP which were helpful to us, and officers at overseas stations would trade snippets with some of their commercial contacts … BHP knew we were giving them secret intelligence. They lapped it up.”

The former spy says informal exchanges with business executives were continuing when he retired in the 1990s. More recently, US diplomatic cables obtained by WikiLeaks and published by Fairfax Media in 2011 revealed former BHP Billiton chief executive Marius Kloppers privately offered “to trade confidences” with US officials about China.

”Kloppers has a keen interest in learning everything he can about the Chinese and is not shy about asking us for our impressions,” US Consul-General Michael Thurston reported to Washington in 2009. BHP declined to comment at the time.

The US and Britain have repeatedly denied charges of economic espionage following the disclosures of US intelligence contractor Edward Snowden. Australia says it is longstanding policy not to comment on intelligence matters.

Australian National University international relations expert Dr Michael McKinley said: ”While most countries might have suspicions … the revelation of economic espionage has the potential to be highly embarrassing.”

Professor Clark also highlights the potential for secret intelligence to harm diplomatic relations.

After leaving the Australian foreign service in the mid 1960s because of his opposition to Australia’s participation in the Vietnam War, Professor Clark pursued a distinguished academic career in Japan.

However as an Australian Government consultant he was also involved in policy making on Australian-Japanese relations in 1974-76.

In his memoirs, Professor Clark recalls how “a piece of phoney information from an incompetent ASIS spy in Tokyo desperate to impress superiors” was used by conservative Canberra bureaucrats to stall trade negotiations with Japan during the Whitlam Labor Government.

“[E]ven when it is clear that the information is unreliable and the spies are out of control, it is hard for anyone to complain or disagree,” he says.

November 7, 2013
Philip Dorling

Find this story at 7 November 2013

Copyright © 2013 Fairfax Media

Amusing to see both NaPo and the G&M hosting remarks from former CSIS deputy director Ray Boisvert dismissing the recent Snowden/Greenwald docs which revealed CSEC spied on Brazil’s Mines and Energy Ministry.

Snowden was present at the Five Eyes conference where the CSEC presentation on their Olympia spying program on Brazil took place.

Boisvert in both papers:

“We were all too busy chasing bad guys who can actually kill people. The idea that we spend a lot of time, or any time at all, on a country like Brazil is pretty low margin stuff, not likely to happen.”

The docs probably only represent “a war gaming exercise,” says Boisvert:

“They have to do paper exercises and say, ‘OK, let’s say our target in counter-terrorism lives in Mali and we have to go up against the Malian telecommunications system.’ They’ll go look at another country and say, ‘OK, well they have a similar network so let’s do a paper exercise and say ‘what do we need?’” he said. ‘I think that’s all this was.’”

Because when you’re “busy chasing bad guys who can actually kill people” and stuff, naturally your anti-terrorism war games will entail a cyber-espionage program searching for corporate secrets in a country where 40 of your own country’s mining corporations are operating.

Wouldn’t have anything to do with looking for info on Brazil wanting to block a Canadian mining company from opening the largest open pit gold mine in Brazil, would it? Brazilian prosecutors say the company has failed to study the impact on local Indian communities and has advertised on its own website “plans to build a mine twice the size of the project first described in an environmental assessment it gave state officials.”

Ok, foreign media. The Guardian, today:

Canadian spies met with energy firms, documents reveal

“The Canadian government agency that allegedly hacked into the Brazilian mining and energy ministry has participated in secret meetings in Ottawa where Canadian security agencies briefed energy corporations.

According to freedom of information documents obtained by the Guardian, the meetings – conducted twice a year since 2005 – involved federal ministries, spy and police agencies, and representatives from scores of companies who obtained high-level security clearance.

Meetings were officially billed to discuss ‘threats’ to energy infrastructure but also covered ‘challenges to energy projects from environmental groups,’ ‘cyber security initiatives’ and ‘economic and corporate espionage.’

The documents – heavily redacted agendas – do not indicate that any international espionage was shared by CSEC officials, but the meetings were an opportunity for government agencies and companies to develop ‘ongoing trusting relations’ that would help them exchange information ‘off the record,’ wrote an official from the Natural Resources ministry in 2010.”

Thank you, Enbridge, for providing the snacks for the one in May 2013.

“Keith Stewart, an energy policy analyst with Greenpeace Canada, said: ‘There seems to be no limit to what the Harper government will do to help their friends in the oil and mining industries. They’ve muzzled scientists, gutted environmental laws, reneged on our international climate commitments, labelled environmental critics as criminals and traitors, and have now been caught engaging in economic espionage in a friendly country. Canadians, and our allies, have a right to ask who exactly is receiving the gathered intelligence and whose interests are being served.’”

Good question. And did no Canadian media request these same FOIs?

You know, I think I blogged about government security briefings to energy companies a few years ago — I’ll see if I can find it.

Meanwhile, would be interesting to hear Boisvert’s explanation as to why the CSEC logo appeared on another NSA doc about intercepting phone calls and emails of ministers and diplomats at the 2009 G20 summit in London.

More “paper exercises”? Filling in an empty spot on the page while chasing bad guys?

And re the recent NSA spying on Brazil PM Dilma Rousseff and the state oil company Petrobras: Did CSEC help out its Five Eyes partner there too?

Back in 1983, CSEC spied on two of Margaret Thatcher’s cabinet ministers on behalf of Thatcher and Britain’s spy agency GCHQ, so this wouldn’t exactly be new territory for CSEC.

Fun fact : The annual report on CSEC produced by its independent watchdog commissioner must first be vetted by CSEC “for national security reasons” before it can be released.

P.S. I pillaged the CSEC slide at top from Lux ex Umbra, where you can view the rest of them.

Posted by admin on October 10, 2013 · Leave a Comment
By Alison@Creekside

Find this story at 10 October 2013

Copyright © 2013

No one is surprised that the United States uses sophisticated electronic spying techniques against its enemies. But Europeans are increasingly worried about allegations that the U.S. uses those same techniques to gather economic intelligence about its allies.

The most extensive claims yet came this spring in a report written for the European Parliament. The report says that the U.S.

National Security Agency, through an electronic surveillance system called Echelon, routinely tracks telephone, fax, and e-mail transmissions from around the world and passes on useful corporate intelligence to American companies.

Among the allegations: that the NSA fed information to Boeing and McDonnell Douglas enabling the companies to beat out European Airbus Industrie for a $ 6 billion contract; and that Raytheon received information that helped it win a $ 1.3 billion contract to provide radar to Brazil, edging out the French company Thomson-CSF. These claims follow previous allegations that the NSA supplied U.S. automakers with information that helped improve their competitiveness with the Japanese (see “Company Spies,” May/June 1994).

Is there truth to these allegations? The NSA is among the most secretive of U.S. intelligence agencies and won’t say much beyond the fact that its mission is “foreign signals intelligence.” The companies involved all refused to comment.

“Since the NSA’s collection capabilities are so grotesquely powerful, it’s difficult to know what’s going on over there,” says John Pike, an analyst at the watchdog group Federation of American Scientists, who has tracked the NSA for years.

This much is known: The NSA owns one of the largest collections of supercomputers in the world, and it’s an open secret–as documented in the European Parliament report–that Echelon vacuums up massive amounts of data from communications satellites and the Internet and then uses its computers to winnow it down. The system scans communications for keywords–“bomb,” for instance–that might tip off analysts to an interesting topic.

Fueling allegations of corporate espionage is the fact that defense contractors and U.S. intelligence agencies are linked extensively through business relationships. Raytheon, for instance, has large contracts to service NSA equipment, according to the European report.

Englishman Glyn Ford, the European Parliament member who initiated the study, wants the NSA to come clean about its activities in Europe. And the Europeans have some leverage on this issue, if they decide to use it. In a drive to improve surveillance, the United States is pressuring European governments to make telephone companies build eavesdropping capabilities into their new systems. But if that’s what the U.S. wants, says Ford, it’s going to have to be open about what information it’s collecting: “If we are going to leave the keys under the doormat for the United States, we want a guarantee that they’re not going to steal the family silver,” he says.

In the meantime, congressional critics have started to wonder if all that high-powered eavesdropping is limited to overseas snooping. In April, Bob Barr (R-Ga.), a member of the House Government Reform Committee, said he was worried by reports that the NSA was engaged in illicit domestic spying.

“We don’t have any direct evidence from the NSA, since they’ve refused to provide any reports, even when asked by the House Intelligence Committee,” Barr says. “But if in fact the NSA is pulling two million transmissions an hour off of these satellites, I don’t think there’s any way they have of limiting them to non-U.S. citizens.”

Last May, after the NSA stonewalled requests to discuss the issue, Congress amended the intelligence appropriations bill to require the agency to submit a report to Congress. (The bill is still in a conference committee.) And the NSA will face more questions when the Government Reform Committee holds hearings on Echelon and other surveillance programs.

“We ought to prevent any agency from the dragnet approach–where they throw out a net and drag anything in,” Barr says.

Kurt Kleiner
Mother Jones November 1, 1999

Find this story at 1 November 2013

Copyright ©2013 Mother Jones and the Foundation for National Progress.

Moscow has angrily denied that one of its diplomats in Washington tried to recruit young Americans to spy for Russian intelligence agencies, calling the allegations a “horror story” reminiscent of the Cold War.

The spy flap centering around the 59-year-old head of a Kremlin-funded cultural exchange program raises the specter of a new dispute rocking already stormy relations between Russia and the U.S.

The FBI is investigating whether Yury Zaitsev, head of the Russian Center for Science and Culture, is a Russian intelligence officer who arranged all-expense-paid trips to Russia aimed at grooming young Americans, including students, political aides, nonprofit sector workers and business executives, according to Mother Jones magazine, which first broke the story.

The Russian Embassy in Washington and Zaitsev himself rejected the allegations and expressed concern that unknown people were trying to ruin efforts by Presidents Barack Obama and Vladimir Putin to mend and expand ties.

“It’s a shame that Russian-American relations periodically echo the Cold War,” Zaitsev, who refused to speak to Mother Jones on the issue, said late Wednesday in an interview with state news agency Itar-Tass. “Someone apparently wants to see the Iron Curtain fall between our two countries once again.”

“This kind of horror story very much resembles the Cold War era,” embassy spokesman Yevgeny Khorishko said in a statement released to Russian media. “A blunt attempt is being made to distort and discredit the activities of the Russian cultural center, which focuses on developing trust and cooperation between our two countries and people.”

He warned that “somebody intends to torpedo” a goal set by Obama and Putin at a Group of Eight summit in June to expand direct contracts between Americans and Russians so as to raise relations to a new level.

But Khorishko vowed that Moscow would not be deterred by the spy allegations. ”The Russian cultural center has been working to expand contacts and improve understanding between Russian and American citizens and will continue to do this work,” he said.

The Russian center is housed in a 1895 mansion purchased by Moscow in 1957. (rccusa.org)

Mother Jones and other U.S. media reported that FBI officials had met with people who traveled to Moscow and St. Petersburg on trips organized by the Russian cultural center and quizzed them on whether Zaitsev worked for Russian intelligence and whether any attempts had been made to recruit them during their stay. The media reports, citing trip participants, said all had denied that the Russians had sought to recruit them.

The FBI refused to comment on whether it had opened an investigation into Zaitsev.

Zaitsev has diplomatic immunity, so U.S. prosecutors could not press charges against him if the FBI were to conclude that he broke the law. But the State Department could withdraw his immunity, forcing the Russian Foreign Ministry to recall him to Moscow.

The cultural center has brought 128 Americans on “short-term, fact-finding trips” to Russia since the exchange program was created under a presidential decree in 2011, according to program information on the center’s website. The global program, which seeks participants aged 25 to 35, has also invited 1,219 people from other countries, including 283 from Europe, 157 from Asia and the Middle East, 29 from Africa and South America and 750 from other former Soviet republics.

About 25 people participated in each trip from the U.S., and they stayed at five-star hotels and met with senior politicians like the mayors of Moscow and St. Petersburg and Federation Council Deputy Speaker Alexander Torshin, Mother Jones said.

Zaitsev, a St. Petersburg native, said in the interview that trip participants were being targeted in a “witch hunt” rooted in a U.S. fear of Russia. “I think it is simply unacceptable that they are ordered to tell what, why, how and why,” he said.

In a reminder of lingering suspicions in both countries, Zaitsev pointed out that the U.S. government also organizes exchange programs that bring young Russians to the United States, and he insisted that his program was as transparent as any of those. “All of the information about our programs and projects is publicly available on our website,” he said.

Zaitsev’s path to Washington is not clear from his organization’s website. He received a doctorate in economics from the Leningrad Technological Institute in 1980 and then worked in several government-run student organizations until the Soviet collapse, according to his online biography. He worked in unspecified “leadership positions in private companies” from 1992 until he was appointed head of the cultural center in July 2010. He is married and has one adult son.

The center’s second floor has a space library focusing on Russian-U.S. cooperation. (rccusa.org)

But Zaitsev faces a formidable task. Relations between the Russia and the U.S. have soured since Putin returned to the presidency last year, with Washington deploring a Kremlin crackdown on the opposition and a ban on U.S. parents adopting Russian children. Moscow for its part has assailed the U.S. Magnitsky blacklist of Russian officials accused of human rights violations.

The tensions have cast a shadow over yearlong events mean to celebrate the 80th anniversary of diplomatic relations.

The Russian cultural center, also known as Rossotrudnichestvo, is “the official home of Russian culture in the United States” and was created in 2001 under a bilateral agreement aimed at fostering relations, according to its website.

It is housed in a 1895 mansion located 20 minutes by foot from the White House that the Soviet government bought in 1957 and used for the embassy’s consular services for 40 years.

The first floor contains the Moscow Room, decorated in cream and gold leaf and with paintings of the Bolshoi Theater, the Kremlin, Moscow State University and Christ the Savior Cathedral; as well as the Hall of Mirrors, with two gala portraits of Peter the Great and Catherine the Great; and the Russian-American Room, with a colorful panorama depicting key moments in Russian-American relations.

The second floor hosts the Pushkin Library, with more than 2,000 books, 300 movies on video and DVD and more than 100 audiobooks; a space library focusing on Russian-U.S. cooperation in space exploration; and classrooms offering Russian-language lessons.

The third floor contains two guest rooms, while the basement has a kitchen that prepares meals for the center’s receptions and offers classes on Russian cuisine.

25 October 2013 | Issue 5242
By Andrew McChesney

Find this story at 25 October 2013

© Copyright 1992-2013. The Moscow Times.

The FBI is investigating whether the U.S.-based director of a Russian government-run cultural exchange program was clandestinely recruiting Americans as possible intelligence assets, according to law enforcement officials.

FBI agents have been interviewing Americans who participated in the Rossotrudnichestvo exchange program run by Yury Zaytsev, who also heads the Russian Center for Science and Culture in Washington. For the past 12 years, the program has paid for about 130 Americans to visit Russia.

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FBI spokeswoman Amy Thoreson declined to comment on whether there was an investigation or to discuss the bureau’s role. A woman who answered the phone at the cultural center said that neither Zaytsev nor the center would comment.

“We know that the boys and girls are speaking,” said the woman, referring to the young Americans who participated in the program and have been interviewed by the FBI. “There are many. But we shall not put out a comment.”

“We are clean and transparent, friendly and true,” said the woman, who did not give her name or title.

The center, at Phelps Place in the Kalorama neighborhood of northwest Washington, offers language lessons and cultural programs, according to its Web site.

A spokesman for the Russian Embassy in Washington denied that the cultural center was involved in the recruitment of spies.

“All such ‘scaring information’ very much resembles Cold War era,” the spokesman, Yevgeniy Khorishko, said in an e-mail. He added that such allegations were being leveled only to “distort and to blacken activities of the Russian Cultural Center.”

The FBI investigation of Zaytsev was first reported by Mother Jones magazine on its Web site.

Law enforcement officials said the FBI is investigating whether Zaytsev and Rossotrudnichestvo have used trips to Russia to recruit Americans. Rossotrudnichestvo paid for all their expenses, including meals, travel, visa fees and lodging. Most of the trips involved about 25 participants, who sometimes stayed in luxury hotels and met with Russian government officials.

Zaytsev did not go on the exchange trips, said one law enforcement official, but he created files on some of the participants, allegedly to cultivate them as future intelligence assets. Law enforcement officials would not comment on whether the FBI has any evidence that Zaytsev was successful in recruiting any assets.

As part of their probe, FBI special agents are trying to interview the Americans who participated in the program, including graduate students, business executives, political aides and nonprofit workers. Rossotrudnichestvo also has cultural exchanges for young people in Europe, Africa, Latin America and Asia.

Richard Portwood, the executive director of the Center for American-Russian Engagement of Emerging Leaders and a participant in the cultural exchange program, said he was interviewed by the FBI this month and was told that Zaytsev was a foreign intelligence officer.

“These revelations came as a total surprise,” Portwood said in a statement. “My sincere hope is that Mr. Zaytsev’s alleged activities do not prevent U.S.-Russia cultural exchanges in the future.”

Portwood, 27, a graduate student at Georgetown University’s School of Foreign Service, said in a telephone interview that he took two trips to Russia through the exchange program, each lasting a little more than a week, in December 2011 and in June 2012. He said the FBI wanted to know what he and others traveling with him did on the trips, whom they met with and whether they saw anything suspicious. Portwood said the trips did not raise any suspicions. But he added: “Cold War spy games have existed for decades between the U.S. and Russia. We’re not naive to that history.”

Zaytsev, who is on a State Department list of foreign mission staff, has diplomatic immunity, according to an administration official. The United States could revoke his immunity, which would force him to return to Russia, a law enforcement official said.

By Sari Horwitz, Published: October 23 E-mail the writer
Nick Anderson contributed to this report.

Find this story at 23 October 2013

© 1996-2013 The Washington Post

Did a senior Russian embassy officer set up exchange trips to Moscow to cultivate young, up-and-coming Americans as Russian intelligence assets?

On September 30, Richard Portwood, a 27-year-old Georgetown University graduate student, received a phone call from an FBI agent who said the bureau wanted to meet with him urgently. Portwood didn’t know why the FBI would have any interest in him, but two days later he sat down with a pair of agents at a coffee shop near his apartment. They told him they suspected that Yury Zaytsev, the US director of a Russian government-run cultural exchange program that Portwood had participated in, was a spy.

Since 2001, Zaytsev’s organization, Rossotrudnichestvo, has footed the bill for about 130 young Americans—including political aides, nonprofit advocates, and business executives—to visit Russia. Along with Portwood, Mother Jones has spoken to two other Rossotrudnichestvo participants who were questioned by the FBI about Zaytsev, who also heads the Russian Cultural Center in Washington.
Yury Zaytsev, a Russian diplomat. Multiple sources tell us he is the subject of an extensive FBI investigation. Rossotrudnichestvo

The FBI agents “have been very up front about” their investigation into whether Zaytsev is a Russian intelligence agent, says a 24-year-old nonprofit worker whom the FBI has interviewed twice and who asked not to be identified. The FBI agents, according to this source, said, “We’re investigating Yury for spying activities. We just want to know what interactions you’ve had with him.” The nonprofit worker was shocked. Zaytsev, he says, is “what you imagine when you imagine a Russian diplomat. He’s fairly stoic, tall, pale.” Zaytsev did not travel on the exchange trips he helped arrange, and his contact with the Americans who went on these trips was limited.

The agents who interviewed the Rossotrudnichestvo participants did not tell them what evidence they possessed to support their suspicions. FBI spokeswoman Amy Thoreson declined to confirm or deny the existence of an investigation into Zaytsev or answer any questions about FBI actions regarding the Russian. (The FBI did not ask Mother Jones to withhold this story.) But based on what the bureau’s agents said during the interviews, the Americans who were questioned concluded the FBI suspects that Zaytsev and Rossotrudnichestvo have used the all-expenses-paid trips to Russia in an effort to cultivate young Americans as intelligence assets. (An asset could be someone who actually works with an intelligence service to gather information, or merely a contact who provides information, opinions, or gossip, not realizing it is being collected by an intelligence officer.) The nonprofit worker says the FBI agents told him that Zaytsev had identified him as a potential asset. Zaytsev or his associates, the agents said, had begun to build a file on the nonprofit worker and at least one other Rossotrudnichestvo participant who had been an adviser to an American governor.

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Many countries—including the United States—place spies abroad under diplomatic cover, and it’s common for law enforcement agencies to keep a close eye on foreign diplomats who might be engaged in espionage. The Americans interviewed by the FBI say the agents did not indicate whether they believed Zaytsev had succeeded in developing Americans as assets.

The FBI appears to be mounting an extensive investigation of Zaytsev. The three Americans interviewed by the FBI say the agents told them the bureau is trying to interview every American who has attended these trips. The nonprofit worker says that FBI agents went so far as to contact a married couple, who are Rossotrudnichestvo alums, while they were vacationing in Japan. He says the agents told him they were also scouring flight manifests associated with Rossotrudnichestvo trips for names that showed up repeatedly and could be Zaytsev collaborators.

All three former participants describe their Rossotrudnichestvo experience as a typical cultural exchange program, albeit a ritzy one. The organization paid for meals, travel, lodging, and every other expense associated with the trip, down to the visa fee. During the St. Petersburg leg of a June 2012 trip, participants stayed at the Sokos Hotel Palace Bridge, a luxury hotel that has hosted delegations for the G8 and G20 summits. Participants on that trip met with the governors of Moscow and St. Petersburg and with Aleksander Torshin, a high-ranking member of Vladimir Putin’s United Russia party. Since 2011, Rossotrudnichestvo has organized six trips. Most included about 25 people, although roughly 50 visited Russia during the group’s first trip in December 2011.

The application process for this exchange program is simple. The application form calls for basic personal details—including the applicant’s place of work and job title—copies of the applicant’s passport, and a one-page letter “briefly outlining why you should be selected, why you are interested and what interests you have in collaboration with Russia.” Applicants tend to find the program through referrals. (Portwood has referred about 50 people to Rossotrudnichestvo. To his knowledge, Rossotrudnichestvo never denied any applicants.) The group also offers similar exchanges to young professionals in Asia, Latin America, Africa, and Europe.

When I called the Russian Cultural Center last week, Zaytsev answered. He declined to answer questions about the FBI’s investigation on the phone, but he eagerly invited me to visit him at the center two days later. “I welcome any questions you have for me,” he said. When I arrived, though, Galina Komissarova, a center employee, asked me to leave, saying I hadn’t sent questions in advance as Zaytsev had requested. (He hadn’t.) Komissarova would not disclose her title or role at the center. “I just clean,” she said sternly, showing me the door. I discovered later that Komissarova is Zaytsev’s wife.

Since then, Zaytsev has not replied to written questions or returned repeated phone calls.

A State Department spokeswoman confirms that Zaytsev is on a list of foreign mission staff who have diplomatic immunity. If it chose to, the United States could revoke his immunity, forcing Russia to call him home.

Portwood, who attended Rossotrudnichestvo trips in 2011 and 2012, and the other Americans questioned by the FBI were asked a similar set of questions. The agents wanted to know how they had heard about the exchange program and where in Russia they traveled. They also asked whether participants had encountered any anti-American sentiment on their trip, were offered jobs, or had suspicious interactions with Rossotrudnichestvo afterward. Portwood and the two other participants said they answered “no” to these questions.

According to three Rossotrudnichestvo alums, Zaytsev displayed no suspicious behavior and none developed an ongoing relationship with him after their excursion. For most Rossotrudnichestvo participants, they say, Zaytsev was merely the name on the congratulatory letter they received when they were accepted into the exchange program.

The third participant who spoke to Mother Jones about the exchange program, a 26-year-old resident of Washington, DC, is not surprised by the FBI’s allegations—and doesn’t care whether he was targeted as a possible intelligence asset. “There’s not a single American diplomat anywhere in the American sphere of influence who doesn’t have an open line of communication with the CIA. … [What Zaytsev is doing] is not something that every other single [foreign] cultural center in DC isn’t also doing,” he says. “And that doesn’t bother me. I don’t have a security clearance. I don’t work for an elected official. I run a social enterprise that has absolutely nothing to do with US-Russia relations.”

Rossotrudnichestvo’s most recent Russia trip was scheduled for mid-October and it’s unclear whether or not it went forward as planned. After he was questioned by the FBI, Portwood emailed people he had earlier referred to the organization to inform them of what he learned. His email read, in part: “The FBI disclosed to me that Yury Zaytsev is a Russian Foreign Intelligence officer and a professional spy, acting as the Director of the Russian Cultural Center in Washington, D.C.…only so that he can maintain a residence here in the United States. In fact, the FBI alleges that part of Mr. Zaytsev’s mission is sending young professionals from the United States to Russia as part of a cultural program wherein participants are evaluated and/or assessed for Russian counterintelligence purposes.”

Portwood was disappointed to learn the exchange program may have been a cover for Russian intelligence work. “It passed the smell test,” he says. “But I guess Russia’s Russia, you know?”

UPDATE, 6:00 p.m. EDT, Wednesday October 23: The Russian Embassy provided the following statement in an email to Mother Jones:

All such “scaring information” very much resembles Cold War era. A blunt tentative is made to distort and to blacken activities of the Russian Cultural Center in DC, which are aimed at developing mutual trust and cooperation between our peoples and countries. As a matter of fact, somebody intends to torpedo the guidelines of the Russian and U.S. Presidents, whose Joint Statement in Lough Erne emphasizes the importance of “expanding direct contracts between Americans and Russians that will serve to strengthen mutual understanding and trust and make it possible to raise U.S.-Russian relations to a qualitatively new level”.

Russian Cultural Center has been working to expand contacts and better understanding between Russian and American citizens and will continue this work.

—By Molly Redden
| Wed Oct. 23, 2013 3:00 AM PDT | UPDATED Wed Oct. 23, 2013 3:00 PM PDT

Find this story at 23 October 2013

Copyright ©2013 Mother Jones and the Foundation for National Progress.

KGB station chief Ivan Stenin (right) and his successor, Geronty Lazovik, in Canberra in 1971.

A KGB officer ran two Australian federal parliamentarians as Soviet agents in the 1970s, according to a confidential account of ASIO counter-espionage operations during the Cold War.

ASIO also tried to persuade a Russian military intelligence officer to defect by offering him treatment in the US for his stomach cancer.

In an unusually candid document obtained by Fairfax Media, a former senior ASIO officer lists known Soviet intelligence officers in Australia and reveals numerous details of ASIO’s counter-espionage efforts. Much of the information remains classified.

The account by the former counter-espionage specialist confirms that Soviet intelligence was very active in Australia throughout the Cold War and that ASIO’s counter-espionage efforts had only limited success.
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The document reveals ASIO’s bid in the 1970s to induce a senior military intelligence officer, Yuriy Ivanovich Stepanenko, to defect.

ASIO offered the Russian, who had stomach cancer, ”the best facilities in the world” at Johns Hopkins Hospital in Baltimore ”if he wanted to jump”.

According to the former ASIO officer, the Russian was “tempted but didn’t live much longer”.

The document also details how ASIO’s bugging operations revealed in the late 1960s and early 1970s that KGB officer Vladimir Aleksandrovich Aleksyev was “running two Australian politicians as agents, using tradecraft of a fairly high order”.

Aleksyev was followed by Vladimir Yevgenyevich Tulayev, “a hard-eyed, well-dressed thug” who, according to declassified ASIO documents, was also “aggressively involved in intelligence operations in Australia”.

Geronty Lazovik, another “definite agent runner”, was much more urbane and developed a wide range of contacts across Federal Parliament by targeting Labor politicians, staffers and lobbyists. However, ASIO director-general Peter Barbour delayed recommending that Tulayev and Lazovik be expelled before the 1972 federal election for fear of triggering political controversy.

Declassified documents show that after the election the new Labor prime minister, Gough Whitlam, was concerned about ASIO’s investigations causing diplomatic embarrassment. Neither KGB officer was expelled and the government suspended ASIO’s phone taps on the Soviet embassy.

Lazovik was reportedly later awarded a medal for his work in Australia. The award was for “allegedly recruiting a top agent in ASIO, Defence or [the Department of Foreign Affairs]”, according to the former ASIO officer.

The document also sheds light on the 1983 Combe-Ivanov affair in which the Hawke Labor government blackballed former Labor national secretary and political lobbyist David Combe because of his involvement with KGB officer Valery Ivanov, who was expelled from Australia.

The former ASIO officer says that Ivanov recruited a cipher clerk in the Indonesian embassy and that ASIO approached the Indonesians to agree to “a joint operation running the cipher clerk back against Ivanov”. However, the proposed double-agent operation had to aborted because of Ivanov’s expulsion.

“The farewell party for Ivanov was bugged and revealing. He had been roundly castigated by [fellow KGB officer] Koshlyakov for going too far, too soon, and wasn’t very happy at that,” the former ASIO officer says.

October 14, 2013
Philip Dorling

Find this story at 14 October 2013

Copyright © 2013 Fairfax Media

The U.S. spying scandal is spreading to Asia, where the foreign ministers of Malaysia and Indonesia have chastised American diplomats and publicly denounced the National Security Agency.

Malaysian Foreign Minister Anifah Aman also complained to Australian diplomats after reports that Australian intelligence agencies were cooperating with the NSA.

The Sydney Morning Herald last week reported that the U.S. embassies in Cambodia, Indonesia, Malaysia, Myanmar and Thailand are engaged in electronic surveillance of the governments in those South Asian nations.

Mr. Aman on Friday summoned Lee McClenny, the deputy ambassador at the U.S. Embassy in Malaysia, and Miles Kupa, the Australian ambassador in Kuala Lumpur. Mr. McClenny represented U.S. Ambassador Joseph Y. Yun, who was out of town.

The foreign minister delivered protest notes to each diplomat “in response to the alleged spying activities carried out by the two embassies” in the Malaysian capital.

In Indonesia, Foreign Minister Marty Natalegawa last week complained to Kristen F. Bauer, who has been acting U.S. ambassador since Ambassador ScotMarciel left Jakarta in July.

“Indonesia cannot accept and protests strongly over the report about wiretapping facilities at the U.S. Embassy in Jakarta,” the foreign minister told reporters.

PLAYING BALL

President Obama stepped up to the plate to reward a loyal political supporter who once played outfield for his favorite baseball team, the Chicago White Sox.

Mr. Obama last week nominated Mark D. Gilbert to serve as ambassador to New Zealand.

Mr. Gilbert, who spent only 11 days in the major leagues during the 1985 season, is believed to be the only former professional baseball player to be nominated for such a high rank in the U.S. diplomatic service.

“Baseball is America’s pastime, so what better way to represent the United States overseas than with someone who began his career as a major league baseball player?” State Department spokeswoman Marie Harf told The Associated Press.

Mr. Gilbert, a 57-year-old bank executive and former Obama fundraiser, played in only seven games for the White Sox before he was sent back to a minor league team in Buffalo, N.Y. He also served two terms as deputy finance chairman of the Democratic National Committee.

By James Morrison
The Washington Times
Sunday, November 3, 2013

Find this story at 3 November 2013

© Copyright 2013 The Washington Times, LLC.

Australia’s electronic spy agency is intercepting Indonesian naval and military communications through a secret radio listening post on the remote Cocos Islands.

According to former defence officials, the Defence Signals Directorate runs the signals interception and monitoring base on Australia’s Indian Ocean territory, 1100 kilometres south-west of Java.

Along with the better-known Shoal Bay Receiving Station near Darwin, the previously unreported Cocos Island facility forms a key part of Australia’s signals intelligence efforts targeting Indonesia.

Known locally as ”the house without windows”, it includes radio monitoring and direction-finding equipment and a satellite ground station. But the station is of little help in combating people smuggling, according to the former intelligence officers.

The station has never been publicly acknowledged by the government, nor previously reported in the media, despite operating for more than two decades.

The Defence Department would not comment, and said only that it hosts ”a communications station” that formed part of the wider defence communications network.

But former defence officers have confirmed that the station is a Defence Signals Directorate facility devoted to maritime and military surveillance, especially Indonesian naval, air force and military communications.

Google Earth imagery of the property, discreetly placed amid coconut palm groves on the south-east part of West Island, shows four cleared areas each with radio mast sets, including a 44-metre-wide ”circularly disposed antenna array” for high-frequency and very high-frequency radio direction finding.

Australian National University intelligence expert Des Ball said the facility was operated remotely from the Defence Signals Directorate headquarters at Russel Hill, in Canberra. Intercepted signals are encrypted and relayed to Canberra.

He said preparations for the Cocos station began in the late 1980s, and involved a highly secretive signals intelligence group, the Royal Australian Air Force’s No. 3 Telecommunications Unit.

In the face of what it described as ”extremely challenging logistics”, an Adelaide-based company, Australian Satellite Communication, then installed a communications satellite earth station at the facility.

The Cocos Island signals intelligence station forms part of broad Australian espionage efforts directed at the Indonesian government.

As reported by Fairfax Media on Thursday, these programs include a covert Defence Signals Directorate surveillance facility at the Australian embassy in Jakarta. One former defence intelligence officer said Australia’s monitoring of Indonesian communications was ”very effective” and allowed assessments of the seriousness of Indonesian efforts to combat people smuggling.

But the former intelligence officer said the Cocos and Shoal Bay facilities were of ”limited utility” in finding vessels carrying asylum seekers that avoided using radios or satellite phones until they contacted the Australian Maritime Safety Authority.

Richard Tanter, of the Nautilus Institute of Security and Sustainability, said the Cocos Islands station was likely to be intercepting increasing volumes of naval and military communications.

”With the increasing Australian and US interest in the Indian Ocean region, it is likely to become more important,” he said.

Date: November 01 2013

Philip Dorling

 Find this story at 1 November 2013

Copyright © 2013
Fairfax Media

Spy expert says Australia operating as ‘listening post’ for US agencies including the NSA

A veteran spy watcher claims Australia is playing a role in America’s intelligence networks by monitoring vast swathes of the Asia Pacific region and feeding information to the US.

Intelligence expert Professor Des Ball says the Australian Signals Directorate – formerly known as the Defence Signals Directorate – is sharing information with the National Security Agency (NSA).

The NSA is the agency at the heart of whistleblower Edward Snowden’s leaks, and has recently been accused of tapping into millions of phone calls of ordinary citizens in France, Germany and Spain.

Mr Ball says Australia has been monitoring the Asia Pacific region for the US using local listening posts.

“You can’t get into the information circuits and play information warfare successfully unless you’re into the communications of the higher commands in [the] various countries in our neighbourhood,” he told Lateline.

Mr Ball says Australia has four key facilities that are part of the XKeyscore program, the NSA’s controversial computer system that searches and analyses vast amounts of internet data.

They include the jointly-run Pine Gap base near Alice Springs, a satellite station outside Geraldton in Western Australia, a facility at Shoal Bay, near Darwin, and a new centre in Canberra.

Mr Ball says security is the focus for Australia’s intelligence agencies.

“At the top of [the list of priorities] you’re going to find communications relating to terrorist activities, particularly if there’s alerts about particular incidents,” Mr Ball said.

A secret map released by Snowden revealed the US had also set up surveillance facilities in embassies and consulates, including in Jakarta, Kuala Lumpur, Phnom Penh, Bangkok, Yangon, Manila, Hong Kong, Taipei, Shanghai and Beijing.

“Australia itself has used foreign embassies for listening purposes [in] an operation codenamed Reprieve … in which we’ve used embassies in our region to monitor local, essentially microwave-relayed telephone conversations,” Mr Ball said.

“The fact that the United States has special collection elements that are doing this today is no different from what many other countries are doing today. It’s not unusual.”

Some critics have raised concerns about the extent of the NSA’s spying program, suggesting that communications of ordinary Australians may have been pried on.

Xenophon calls on Government to protect Australians from US surveillance

Mr Ball says Australia, the US, the UK, New Zealand and Canada have a long-standing “five eyes” agreement to not spy on each other, and he believes it has not been breached.

“The fact that it hasn’t [been breached] for over five decades I think signifies to the integrity of at least that part of the arrangement,” he said.

But independent Senator Nick Xenophon says the Government should do more to ensure Australians are not subject to the surveillence from US agencies.

“At the very least, the Australian Government should be calling in the US ambassador and asking whether the level of scrutiny, the level of access to citizens’ phone records in Germany, France and Spain, has been happening here,” he said.

“I think we deserve an answer on that.”

Former NSA executive lifts lid on spy practices

In 2010, former NSA senior executive Thomas Drake was charged with leaking government secrets to a journalist.

He was tried under the US espionage act but his case was ultimately reduced to a minor misdemeanour charge. He escaped a jail sentence after a finding that the information he disclosed was not classified.

He agrees with Mr Ball that the US has not breached its spying agreement with Australia.

But he told Lateline those five nations do “utilise each other’s services” to gather information on other “fair game” nations.

“Much of it is legit, but increasingly since 9/11 because of the sheer power of technology and access to the world’s communication systems … [agencies have] extraordinary access to even more data on just about anything and anybody,” he told Lateline.

“And what they want is to do so and have access to it any time, anywhere, any place.”

US moves to ease concerns about NSA

US president Barack Obama has come under fierce criticism over allegations that the NSA tapped the mobile phone of German chancellor Angela Merkel and conducted widespread electronic snooping in France, Italy, Spain and elsewhere.

Amid a growing uproar, White House officials have said they will review intelligence collection programs with an eye to narrowing their scope.

“We need to make sure that we’re collecting intelligence in a way that advances our security needs and that we don’t just do it because we can,” White House spokesman Jay Carney said.

Mr Drake says it is alarming that a nation would spy on those it considers allies.

“Spying on others is considered the world’s second oldest profession and so the idea that nation states would engage in spying on others is no surprise, not at all,” he said.

“I think what’s particularly pernicious here is the fact we’re actually listening on the personal communications of the highest levels of governments in countries that are supposed to be our allies and are actually partnered with us in ensuring that we deal and defend against threats to international order and stability.”

Spying ‘done behind the veil of secrecy’

He says most countries go along with US requests for data.

“It’s heavy stuff and when it’s done behind the veil of secrecy, outside the public view then hey, it’s whatever you can get away with because you can,” he said.

“Just because you can doesn’t mean you should and I actually think it’s encouraging the countries are standing up against the US in this regard because it is overreach.

“It really is going far beyond the mandate to ensure international order and stability, even in partnership with other countries.

“The real fundamental threat here though is ultimately the sovereignty of individuals, who we are as people. We’re supposed to have rights.

“What’s happened after 9/11 is now security has kind of taken primacy over rights and liberties because of the real or perceived threat.”

Snowden ‘aware his revelations have been explosive’

Snowden is currently holed up in Russia after leaking information about America’s vast surveillance operations.

Mr Drake recently met Snowden in Moscow, and says the former NSA contractor is aware his disclosures have been “quite explosive”.

“His focus is on reform. His focus is on rolling back the surveillance data. His focus is repealing many of the enabling act legislation that put all this into place, or at least enabled the government in secrecy to expand the surveillance date far beyond its original mandate,” Mr Drake said.

“He’s obviously grateful that he’s got temporary asylum in Russia. I don’t think it was certainly not a place he was planning on going to or remaining in for any length of time.

“He’s looking forward, at some point in the future, to returning to the US but that’s certainly not possible right now.

“The US has already levied serious charges against him including the same charges that they levied against me under the espionage act.”

By Jason Om and staff –
October 30, 2013, 11:54 am

Find this story at 30 October 2013

Copyright © 2013 Yahoo!7 Pty Limited.

STATEROOM sites are covert SIGINT collection sites located in diplomatic facilities abroad. SIGINT agencies hosting such sites include SCS (at U.S> diplomatic facilities), Government Communications headquarters or GCHQ (at British diplomatic facilities), Communication Security Establishments or CSE (at Canadian diplomatic facilities), and Defense Signals Directorate (at Australian diplomatic facilities). These sites are small in size and in the number of personnel staffing them. They are covert, and their true mission is not known by the majority of the diplomatic staff at the facility where they are assigned.”

Find this story at 27 October 2013

China’s government is “severely concerned about the reports and demands a clarification and explanation,” Foreign Ministry spokeswoman Hua Chunying said. Government officials in Indonesia, Malaysia and Thailand – all U.S. allies – made similarly angry statements.

“Indonesia strongly protests the existence of a tapping facility in the U.S. Embassy in Jakarta,” Indonesian Foreign Minister Marty Natalegawa said. “If it’s confirmed, such action is not only a breach of security, but also a serious violation of diplomatic norms and ethics, and certainly not in tune with the spirit of friendly relations between nations.”

The Asian leaders were reacting to a report this week in the German magazine Der Spiegel and a Sydney Morning Herald article Thursday that named cities in which embassies are used for electronic surveillance by the United States, Britain, Australia, Canada and New Zealand – a group of intelligence partners known as the “5-eyes.”

The reports were based on a secret National Security Agency document that was leaked by former contractor Edward Snowden and first published by Der Spiegel. The Sydney newspaper, part of the Fairfax Media group, also included information provided by an unidentified former Australian intelligence officer.

Code-named STATEROOM, the program used disguised surveillance equipment in about 80 embassies and consulates worldwide, the Herald reported, adding that the equipment is concealed in roof maintenance sheds or as features of the building itself.

Nineteen of the diplomatic facilities are in Europe. The Asian embassies involved include those in Jakarta; Bangkok; Hanoi; Beijing; Dili, East Timor; Kuala Lumpur, Malaysia; and Port Moresby, Papua New Guinea.

Australian Prime Minister Tony Abbott declined to discuss the Herald report in detail, but he told reporters, “Every Australian governmental agency, every Australian official at home and abroad operates in accordance with the law, and that’s the assurance that I can give people at home and abroad.”

In an interview with the Associated Press, Australian intelligence expert Desmond Ball said he had seen covert antennas in five of the embassies named in the Australian media report. But Ball, a professor with the Australian National University’s Strategic and Defense Studies Center, declined to specify which embassies.

Notably absent from the list of countries reportedly under surveillance in the program are the staunchest U.S. allies in Asia, Japan and South Korea. This week, Japanese media reported that the NSA had asked the Japanese government in 2011 for permission to tap fiber-optic cables in Japan, which carries much traffic throughout East Asia, as a way to collect surveillance on China. But the Japanese government refused, citing legal hurdles and lack of manpower.

On Wednesday, in response to reports of U.S. surveillance of European leaders, the Chinese Foreign Ministry called cybersecurity “a matter of sovereignty” and said China was taking steps to increase its security, as well as joining Russia in backing a U.N. proposal to address such surveillance.

China’s state-run media have also roundly criticized the United States, with headlines declaring that the revelations would weaken U.S. global influence. Commentators accusedthe United States, which for years has complained of Chinese cyberattacks, of hypocrisy and demanded U.S. apologies.

According to U.S. security experts, Chinese cyberspies, including hackers affiliated with the Chinese military, have stolen industrial secrets for years and have penetrated powerful Washington institutions, including law firms, think tanks, news organizations, human rights groups, contractors, congressional offices, embassies and federal agencies.

Malaysian Home Minister Ahmad Zahid Hamidi said his government takes the reports seriously and is trying to confirm whether such intelligence gathering had taken place. “It is a sensitive issue since it involves several countries,” Zahid said.

The opposition party criticized Malaysia’s government for being too “submissive” in its reaction to the United States.

Lt. Gen. Paradorn Pattanatabut, secretary-general of Thailand’s National Security Council, said his government would tell Washington that such surveillance is against Thai law and that Thai security agencies have been put on alert.

If asked, Paradorn said, Thailand would not cooperate with such U.S. spying programs. But he also emphasized that “we believe that Thailand and the U.S. still enjoy good and cordial relations.”

Chico Harlan in Seoul contributed to this report.

Michael Birnbaum 12:00 PM ET

Find this story at 31 October 2013

© 1996-2013 The Washington Post

Documents leaked by whistleblower Edward Snowden contain details of surveillance collection programme across Asia

Australia’s embassies are part of a US-led global spying network and are being used to intercept calls and data across Asia, it has been claimed.

There are surveillance collection facilities at embassies in Jakarta, Bangkok, Hanoi, Beijing and Dili, and high commissions in Kuala Lumpur and Port Moresby, Fairfax Media reports, with diplomats unaware of them.

Some of the details are in a secret US National Security Agency (NSA) document leaked by whistleblower Edward Snowden and published by Germany’s Der Spiegel magazine.

The document reveals the existence of a signals intelligence collection program – codenamed STATEROOM – conducted from sites at US embassies and consulates and from the diplomatic missions of intelligence partners including Australia, Britain and Canada.

The document says the Australian Defence Signals Directorate operates STATEROOM facilities “at Australian diplomatic facilities”.

“They are covert, and their true mission is not known by the majority of the diplomatic staff at the facility where they are assigned,” the document says.

A former Australian Defence Intelligence officer told Fairfax the directorate conducted surveillance operations from Australian embassies across Asia and the Pacific.

The Department of Foreign Affairs would not comment on “intelligence matters”, Fairfax said.

The US has been embarrassed by media leaks from Snowden that the NSA listened in on the communications of dozens of foreign leaders, including the German chancellor, Angela Merkel.

Australian Associated Press
theguardian.com, Wednesday 30 October 2013 22.30 GMT

Find this story at 30 October 2013

© 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved.

Leading intelligence and security academic Prof. Des Ball discusses the history of embassy spying and says Australia is a target in our own capital.

Australian embassies are being secretly used to intercept phone calls and data across Asia as part of a US-led global spying network, according to whistleblower Edward Snowden and a former Australian intelligence officer.

The top secret Defence Signals Directorate operates the clandestine surveillance facilities at embassies without the knowledge of most Australian diplomats.

International outcry: A Stop Watching US Rally in Washington D.C. Photo: Getty Images

The revelations come as the US has been left red-faced by news it has been eavesdropping on foreign leaders, including German Chancellor Angela Merkel.
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US President Barack Obama is said to be on the verge of ordering a halt to spying on the heads of allied governments following the international outcry.

Fairfax Media has been told that signals intelligence collection takes place from embassies in Jakarta, Bangkok, Hanoi, Beijing and Dili, and High Commissions in Kuala Lumpur and Port Moresby, as well as other diplomatic posts.

Edward Snowden: Leaked a secret US National Security Agency document. Photo: Reuters

A secret US National Security Agency document leaked by Mr Snowden and published by Germany’s Der Speigel reveals the existence of a highly sensitive signals intelligence collection program conducted from sites at US embassies and consulates and from the diplomatic missions of other “Five eyes” intelligence partners including Australia, Britain and Canada.

Codenamed STATEROOM, the program involves the interception of radio, telecommunications and internet traffic.

The document explicitly states that the Australian Defence Signals Directorate operates STATEROOM facilities “at Australian diplomatic facilities”.

The document notes that the surveillance facilities “are small in size and in number of personnel staffing them”.

“They are covert, and their true mission is not known by the majority of the diplomatic staff at the facility where they are assigned,” the document says.

The National Security Agency document also observed the facilities were carefully concealed: “For example antennas are sometimes hidden in false architectural features or roof maintenance sheds.”

The Department of Foreign Affairs and Trade declined to comment on the potential diplomatic implications of the disclosure. A departmental spokesperson said: “It is the long-standing practice of Australian governments not to comment on intelligence matters.”

The leaked NSA document does not identify the location of specific Defence Signals Directorate facilities overseas.

However, a former Australian Defence Intelligence officer has told Fairfax Media the directorate conducts surveillance operations from Australian embassies across Asia and the Pacific.

The former intelligence officer said the interception facility at the Australian Embassy in Jakarta played an important role in collecting intelligence on terrorist threats and people-smuggling, “but the main focus is political, diplomatic and economic intelligence”.

“The huge growth of mobile phone networks has been a great boon and Jakarta’s political elite are a loquacious bunch; even when they think their own intelligence services are listening they just keep talking,” the source said.

He said the Australian Consulate in Denpasar, Bali, has also been used for signals intelligence collection.

In June the East Timorese government complained publicly about Australian spying, including communications interception and bugging government offices during negotiations on the future of the Timor Gap oil and gas reserves.

Intelligence leaks to the media in the 1980s disclosed installation of ”extraordinarily sophisticated” intercept equipment in Australia’s High Commission in Port Moresby and in the Australian embassies in Jakarta and Bangkok.

Further leaks of top secret Defence Intelligence reports on Indonesia and East Timor in 1999 also indicated that Australia intelligence has extensive access to sensitive Indonesian military and civilian communications.

Intelligence expert Des Ball said the Defence Signals Directorate had long co-operated with the US in monitoring the Asia-Pacific region, including using listening posts in embassies and consulates.

“Knowing what our neighbours are really thinking is important for all sorts of diplomatic and trade negotiations,” Professor Ball told Fairfax Media.

October 31, 2013
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Philip Dorling

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