Fears of customer backlash over breach of privacy as firms give GCHQ unlimited access to their undersea cables

Some of the world’s leading telecoms firms, including BT and Vodafone, are secretly collaborating with Britain’s spy agency GCHQ, and are passing on details of their customers’ phone calls, email messages and Facebook entries, documents leaked by the whistleblower Edward Snowden show.

BT, Vodafone Cable, and the American firm Verizon Business – together with four other smaller providers – have given GCHQ secret unlimited access to their network of undersea cables. The cables carry much of the world’s phone calls and internet traffic.

In June the Guardian revealed details of GCHQ’s ambitious data-hoovering programmes, Mastering the Internet and Global Telecoms Exploitation, aimed at scooping up as much online and telephone traffic as possible. It emerged GCHQ was able to tap into fibre-optic cables and store huge volumes of data for up to 30 days. That operation, codenamed Tempora, has been running for 20 months.

On Friday Germany’s Süddeutsche newspaper published the most highly sensitive aspect of this operation – the names of the commercial companies working secretly with GCHQ, and giving the agency access to their customers’ private communications. The paper said it had seen a copy of an internal GCHQ powerpoint presentation from 2009 discussing Tempora.

The document identified for the first time which telecoms companies are working with GCHQ’s “special source” team. It gives top secret codenames for each firm, with BT (“Remedy”), Verizon Business (“Dacron”), and Vodafone Cable (“Gerontic”). The other firms include Global Crossing (“Pinnage”), Level 3 (“Little”), Viatel (“Vitreous”) and Interoute (“Streetcar”). The companies refused to comment on any specifics relating to Tempora, but several noted they were obliged to comply with UK and EU law.

The revelations are likely to dismay GCHQ and Downing Street, who are fearful that BT and the other firms will suffer a backlash from customers furious that their private data and intimate emails have been secretly passed to a government spy agency. In June a source with knowledge of intelligence said the companies had no choice but to co-operate in this operation. They are forbidden from revealing the existence of warrants compelling them to allow GCHQ access to the cables.

Together, these seven companies operate a huge share of the high-capacity undersea fibre-optic cables that make up the backbone of the internet’s architecture. GCHQ’s mass tapping operation has been built up over the past five years by attaching intercept probes to the transatlantic cables where they land on British shores. GCHQ’s station in Bude, north Cornwall, plays a role. The cables carry data to western Europe from telephone exchanges and internet servers in north America. This allows GCHQ and NSA analysts to search vast amounts of data on the activity of millions of internet users. Metadata – the sites users visit, whom they email, and similar information – is stored for up to 30 days, while the content of communications is typically stored for three days.

GCHQ has the ability to tap cables carrying both internet data and phone calls. By last year GCHQ was handling 600m “telephone events” each day, had tapped more than 200 fibre-optic cables and was able to process data from at least 46 of them at a time.

Each of the cables carries data at a rate of 10 gigabits per second, so the tapped cables had the capacity, in theory, to deliver more than 21 petabytes a day – equivalent to sending all the information in all the books in the British Library 192 times every 24 hours.

This operation is carried out under clandestine agreements with the seven companies, described in one document as “intercept partners”. The companies are paid for logistical and technical assistance.

The identity of the companies allowing GCHQ to tap their cables was regarded as extremely sensitive within the agency. Though the Tempora programme itself was classified as top secret, the identities of the cable companies was even more secret, referred to as “exceptionally controlled information”, with the company names replaced with the codewords, such as “GERONTIC”, “REMEDY” and “PINNAGE”.

However, some documents made it clear which codenames referred to which companies. GCHQ also assigned the firms “sensitive relationship teams”. One document warns that if the names emerged it could cause “high-level political fallout”.

Germans have been enraged by the revelations of spying by the National Security Agency and GCHQ after it emerged that both agencies were hoovering up German data as well. On Friday the Süddeutsche said it was now clear that private telecoms firms were far more deeply complicit in US-UK spying activities than had been previously thought.

The source familiar with intelligence maintained in June that GCHQ was “not looking at every piece of straw” but was sifting a “vast haystack of data” for what he called “needles”.

He added: “If you had the impression we are reading millions of emails, we are not. There is no intention in this whole programme to use it for looking at UK domestic traffic – British people talking to each other.” The source said analysts used four criteria for determining what was examined: security, terror, organised crime and Britain’s economic wellbeing.”The vast majority of the data is discarded without being looked at … we simply don’t have the resources.”

Nonetheless, the agency repeatedly referred to plans to expand this collection ability still further in the future.

Once it is collected, analysts are able to search the information for emails, online chats and browsing histories using an interface called XKeyscore, uncovered in the Guardian on Wednesday. By May 2012, 300 analysts from GCHQ and 250 NSA analysts had direct access to search and sift through the data collected under the Tempora program.

Documents seen by the Guardian suggest some telecoms companies allowed GCHQ to access cables which they did not themselves own or operate, but only operated a landing station for. Such practices could raise alarm among other cable providers who do not co-operate with GCHQ programmes that their facilities are being used by the intelligence agency.

Telecoms providers can be compelled to co-operate with requests from the government, relayed through ministers, under the 1984 Telecommunications Act, but privacy advocates have raised concerns that the firms are not doing enough to challenge orders enabling large-scale surveillance, or are co-operating to a degree beyond that required by law.

“We urgently need clarity on how close the relationship is between companies assisting with intelligence gathering and government,” said Eric King, head of research for Privacy International. “Were the companies strong-armed, or are they voluntary intercept partners?”

Vodafone said it complied with the laws of all the countries in which its cables operate. “Media reports on these matters have demonstrated a misunderstanding of the basic facts of European, German and UK legislation and of the legal obligations set out within every telecommunications operator’s licence … Vodafone complies with the law in all of our countries of operation,” said a spokesman.

“Vodafone does not disclose any customer data in any jurisdiction unless legally required to do so. Questions related to national security are a matter for governments not telecommunications operators.”

A spokeswoman for Interoute said: “As with all communication providers in Europe we are required to comply with European and local laws including those on data protection and retention. From time to time we are presented with requests from authorities. When we receive such requests, they are processed by our legal and security teams and if valid, acted upon.”

A spokeswoman for Verizon said: “Verizon continually takes steps to safeguard our customers’ privacy. Verizon also complies with the law in every country in which we operate.”

BT declined to comment.

James Ball, Luke Harding and Juliette Garside
The Guardian, Friday 2 August 2013 18.36 BST

Find this story at 2 August 2013

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

Obama administration officials faced deepening political skepticism Wednesday about a far-reaching counterterrorism program that collects millions of Americans’ phone records, even as they released newly declassified documents in an attempt to spotlight privacy safeguards.

The previously secret material — a court order and reports to Congress — was released by Director of National Intelligence James R. Clapper as a Senate Judiciary Committee hearing opened Wednesday morning in which lawmakers sharply questioned the efficacy of the collection of bulk phone records. A senior National Security Agency official conceded that the surveillance effort was the primary tool in thwarting only one plot — not the dozens that officials had previously suggested.

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In recent weeks, political support for such broad collection has sagged, and the House last week narrowly defeated a bipartisan bid to end the program, at least in its current form. On Wednesday, senior Democratic senators voiced equally strong doubts.

“This bulk-collection program has massive privacy implications,” said Senate Judiciary Committee Chairman Patrick J. Leahy (Vt.). “The phone records of all of us in this room — all of us in this room — reside in an NSA database. I’ve said repeatedly, just because we have the ability to collect huge amounts of data does not mean that we should be doing so. . . . If this program is not effective, it has to end. So far, I’m not convinced by what I’ve seen.”

Administration officials defended the collection effort and a separate program targeting foreigners’ communication as essential and operating under stringent guidelines.

“With these programs and other intelligence activities, we are constantly seeking to achieve the right balance between the protection of national security and the protection of privacy and civil liberties,” Deputy Attorney General James Cole said. “We believe these two programs have achieved the right balance.”

Cole nonetheless said the administration is open to amending the program to achieve greater public trust. Legislation is pending in the Senate that would narrow its scope.

The NSA program collecting phone records began after the September 2001 terrorist attacks and was brought under the supervision of the Foreign Intelligence Surveillance Court in 2006. But its existence remained hidden until June, when the Guardian newspaper in Britain published a classified FISC order to a U.S. phone company to turn over to the NSA all call records. Former NSA contractor Edward Snowden leaked the order to the newspaper.

On Wednesday, the Guardian published new documents provided by Snowden that outlined previously unknown features of an NSA data-retrieval system called XKeyscore. The newspaper reported that the search tool allowed analysts to “search with no prior authorization through vast databases containing emails, online chats and the browsing histories of millions of individuals.”

NSA slides describing the system published with the Guardian article indicated that analysts used it to sift through government databases, including Pinwale, the NSA’s primary storage system for e-mail and other text, and Marina, the primary storage and analysis tool for “metadata.” Another slide described analysts using XKeyscore to access a database containing phone numbers, e-mail addresses, log-ins and Internet user activity generated from other NSA programs.

The newspaper said the disclosures shed light on Snowden’s claim that the NSA’s surveillance programs allowed him while sitting at his desk to “wiretap anyone, from you or your accountant, to a federal judge or even the president, if I had a personal ­e-mail.” U.S. officials have denied that he had such capability.

In a statement responding to the Guardian report, the NSA said “the implication that NSA’s collection is arbitrary and unconstrained is false. NSA’s activities are focused and specifically deployed against — and only against — legitimate foreign intelligence targets.” The agency further said: “Access to XKEYSCORE, as well as all of NSA’s analytic tools, is limited to only those personnel who require access for their assigned tasks. . . . Not every analyst can perform every function, and no analyst can operate freely. Every search by an NSA analyst is fully auditable, to ensure that they are proper and within the law.”

On Wednesday, Clapper disclosed the FISA court’s “primary” order that spells out the program’s collection rules and two reports to Congress that discussed the program, which is authorized under Section 215 of the “business records” provision of the Foreign Intelligence Surveillance Act. Administration officials released the documents to reassure critics that the program is strictly supervised and minimally invasive.

For instance, the primary order states that only “appropriately trained and authorized personnel” may have access to the records, which consist of phone numbers of calls made and received, their time and duration, but not names and content. Officials call this metadata. The order also states that to query the data, there must be “reasonable, articulable suspicion,” presumably that the number is linked to a foreign terrorist group.

But the documents fueled more concern about the program’s scope among civil liberties advocates who are pressing the administration to release the legal rationale that might explain what makes such large numbers of records relevant to an authorized investigation. Perhaps most alarming to some critics was the disclosure, in the order, that queries of the metadata return results that are placed into a “corporate store” that may then be searched for foreign intelligence purposes with fewer restrictions.

That disclosure takes on significance in light of Deputy NSA Director John C. Inglis’s testimony last month that analysts could extend their searches by “three hops.” That means that starting from a target’s phone number, analysts can search on the phone numbers of people in contact with the target, then the numbers of people in contact with that group, and then the numbers of people in contact with that larger pool. That is potentially millions of people, said Jameel Jaffer, deputy legal director of the American Civil Liberties Union, who also testified Wednesday.

The Office of the DNI earlier released a statement that fewer than 300 numbers were queried in 2012. That could still mean potentially hundreds of millions of records, Sen. Richard J. Durbin (D-Ill.) said at the hearing.

Also, according to the order, the NSA does not need to audit the results of searches of the corporate store.

The order asserts that phone metadata could be obtained with a grand jury subpoena. That may be true for one person or even a group of people, but not for all Americans’ phone records, critics said.

Privacy advocates criticized redactions in the reports to Congress of information about the NSA’s failure to comply with its own internal rules. That is “among the most important information that the American public needs to critically assess whether these programs are proper,” said Mark Rumold, a staff lawyer at the Electronic Frontier Foundation.

At the hearing, Leahy voiced upset with the administration for suggesting that the program was as effective in thwarting terrorist plots as another NSA program, authorized under Section 702 of FISA and targeting foreigners’ communications. “I don’t think that’s a coincidence when we have people in government make that comparison, but it needs to stop,” he said of attempts to conflate the two programs’ utility.

He noted that senior officials had testified that the phone logging effort was critical to thwarting 54 plots, but after reviewing NSA material, he said that assertion cannot be made — “not by any stretch.” Pressed by Leahy on the point, Inglis admitted that the program “made a contribution” in 12 plots with a domestic nexus, but only one case came close to a “but-for” or critical contribution.

Carol D. Leonnig and William Branigin contributed to this report.

By Ellen Nakashima, Published: July 31, 2013

Find this story at 31 July 2013

© 1996-2014 The Washington Post

Der britische Geheimdienst wurde bei Abhöraktionen umfangreicher von Telekommunikationsfirmen unterstützt als bislang bekannt. Das berichten “Süddeutsche Zeitung” und NDR. Sogar Programmierarbeit soll an die Firmen ausgelagert worden sein.

Berlin – Laut übereinstimmenden Berichten des NDR und der “Süddeutschen Zeitung” (SZ) sind einige private Telekommunikationsunternehmen stärker in die Abhöraktionen ausländischer Geheimdienste verwickelt als bisher angenommen. Der britische Geheimdienst GCHQ etwa, ein enger Partner des US-Diensts NSA, arbeite beim Abhören des Internetverkehrs mit sieben großen Firmen zusammen.

NDR und “Süddeutsche Zeitung” beziehen sich in ihren Berichten auf Dokumente des ehemaligen NSA-Vertragsmitarbeiters Edward Snowden, die sie einsehen konnten. Die interne Präsentation von 2009 nennt neben den internationalen Unternehmen British Telecom, Verizon und Vodafone auch die Netzwerkbetreiber Level 3, Interoute, Viatel und Global Crossing als Schlüsselpartner des GCHQ. Global Crossing wurde inzwischen von Level 3 gekauft.

Gemeinsam spannen die Unternehmen laut NDR und “SZ” ein engmaschiges Datennetz über Europa und weite Teile der Welt. Einige Firmen wie Level 3 betreiben in Deutschland demnach große Datenzentren. Demnach betreibt Level 3 Rechenzentren in mehreren deutschen Städten, ein Transatlantikkabel von Global Crossing ist in Westerland auf Sylt mit deutschen Netzen verbunden. Das Unternehmen Interoute, das den Unterlagen zufolge auch mit dem GCHQ kooperiert, betreibt 15 Netzknoten in Deutschland.

Teilweise sei die Kooperation mit dem Geheimdienst über den einfachen Zugang zu den Datennetzen hinausgegangen, berichten “SZ” und NDR. Einige Firmen sollen laut den Dokumenten sogar Computerprogramme entwickelt haben, um dem britischen Geheimdienst das Abfangen von Daten aus ihren Netzen zu erleichtern. Faktisch habe der GCHQ einen Teil seiner Ausspäharbeit an Privatunternehmen delegiert.

Viatel bestreitet Zusammenarbeit

Die meisten der Unternehmen verwiesen laut NDR und “SZ” auf Gesetze, die Regierungen erlaubten, Firmen unter bestimmten Umständen zur Herausgabe von Informationen zu verpflichten. Viatel widersprach den Angaben und erklärte, nicht mit dem GCHQ zu kooperieren und dem Geheimdienst auch keinen Zugang zur eigenen Infrastruktur oder zu Kundendaten zu gewähren.

02. August 2013, 09:20 Uhr

Find this story at 2 August 2013

© SPIEGEL ONLINE 2013

The U.S. government had a problem: Spying in the digital age required access to the fiber-optic cables traversing the world’s oceans, carrying torrents of data at the speed of light. And one of the biggest operators of those cables was being sold to an Asian firm, potentially complicating American surveillance efforts.

Enter “Team Telecom.”

In months of private talks, the team of lawyers from the FBI and the departments of Defense, Justice and Homeland Security demanded that the company maintain what amounted to an internal corporate cell of American citizens with government clearances. Among their jobs, documents show, was ensuring that surveillance requests got fulfilled quickly and confidentially.

This “Network Security Agreement,” signed in September 2003 by Global Crossing, became a model for other deals over the past decade as foreign investors increasingly acquired pieces of the world’s telecommunications infrastructure.

The publicly available agreements offer a window into efforts by U.S. officials to safeguard their ability to conduct surveillance through the fiber-optic networks that carry a huge majority of the world’s voice and Internet traffic.

The agreements, whose main purpose is to secure the U.S. telecommunications networks against foreign spying and other actions that could harm national security, do not authorize surveillance. But they ensure that when U.S. government agencies seek access to the massive amounts of data flowing through their networks, the companies have systems in place to provide it securely, say people familiar with the deals.

Negotiating leverage has come from a seemingly mundane government power: the authority of the Federal Communications Commission to approve cable licenses. In deals involving a foreign company, say people familiar with the process, the FCC has held up approval for many months while the squadron of lawyers dubbed Team Telecom developed security agreements that went beyond what’s required by the laws governing electronic eavesdropping.

The security agreement for Global Crossing, whose fiber-optic network connected 27 nations and four continents, required the company to have a “Network Operations Center” on U.S. soil that could be visited by government officials with 30 minutes of warning. Surveillance requests, meanwhile, had to be handled by U.S. citizens screened by the government and sworn to secrecy — in many cases prohibiting information from being shared even with the company’s executives and directors.

“Our telecommunications companies have no real independence in standing up to the requests of government or in revealing data,” said Susan Crawford, a Yeshiva University law professor and former Obama White House official. “This is yet another example where that’s the case.”

The full extent of the National Security Agency’s access to fiber-optic cables remains classified. The Office of the Director of National Intelligence issued a statement saying that legally authorized data collection “has been one of our most important tools for the protection of the nation’s — and our allies’ — security. Our use of these authorities has been properly classified to maximize the potential for effective collection against foreign terrorists and other adversaries.”

It added, “As always, the Intelligence and law enforcement communities will continue to work with all members of Congress to ensure the proper balance of privacy and protection for American citizens.”

Collecting information

Documents obtained by The Washington Post and Britain’s Guardian newspaper in recent weeks make clear how the revolution in information technology sparked a revolution in surveillance, allowing the U.S. government and its allies to monitor potential threats with a reach impossible only a few years earlier.

Yet any access to fiber-optic cables allows for possible privacy intrusions into Americans’ personal communications, civil libertarians say.

As people worldwide chat, browse and post images through online services, much of the information flows within the technological reach of U.S. surveillance. Though laws, procedural rules and internal policies limit how that information can be collected and used, the data from billions of devices worldwide flow through Internet choke points that the United States and its allies are capable of monitoring.

This broad-based surveillance of fiber-optic networks runs parallel to the NSA’s PRISM program, which allows analysts to access data from nine major Internet companies, including Google, Facebook, Microsoft, Yahoo, AOL and Apple, according to classified NSA PowerPoint slides. (The companies have said the collection is legal and limited.)

One NSA slide titled, “Two Types of Collection,” shows both PRISM and a separate effort labeled “Upstream” and lists four code names: Fairview, Stormbrew, Blarney and Oakstar. A diagram superimposed on a crude map of undersea cable networks describes the Upstream program as collecting “communications on fiber cables and infrastructure as data flows past.”

The slide has yellow arrows pointing to both Upstream and PRISM and says, “You Should Use Both.” It also has a header saying “FAA 702 Operations,” a reference to a section of the amended Foreign Intelligence Surveillance Act that governs surveillance of foreign targets related to suspected terrorism and other foreign intelligence.

Under that provision, the government may serve a court order on a company compelling it to reach into its networks for data on multiple targets who are foreigners reasonably believed to be overseas. At an Internet gateway, the government may specify a number of e-mail addresses of foreigners to be targeted without the court signing off on each one.

When the NSA is collecting the communications of a foreign, overseas target who is speaking or e-mailing with an American, that American’s e-mail or phone call is considered to be “incidentally” collected. It is considered “inadvertently” collected if the target actually turns out to be an American, according to program rules and people familiar with them. The extent of incidental and inadvertent collection has not been disclosed, leading some lawmakers to demand disclosure of estimates of how many Americans’ communications have been gathered. No senior intelligence officials have answered that question publicly.

Using software that scans traffic and “sniffs out” the targeted e-mail address, the company can pull out e-mail traffic automatically to turn over to the government, according to several former government officials and industry experts.

It is unclear how effective that approach is compared with collecting from a “downstream” tech company such as Google or Facebook, but the existence of separate programs collecting data from both technology companies and telecommunications systems underscores the reach of government intelligence agencies.

“People need to realize that there are many ways for the government to get vast amounts of e-mail,” said Chris Soghoian, a technology expert with the American Civil Liberties Union.

Controlling the data flow

The drive for new intelligence sources after the Sept. 11, 2001, attacks relied on a key insight: American companies controlled most of the Internet’s essential pipes, giving ample opportunities to tap the torrents of data flowing by. Even terrorists bent on destruction of the United States, it turned out, talked to each other on Web-based programs such as Microsoft’s Hotmail.

Yet even data not handled by U.S.-based companies generally flowed across parts of the American telecommunications infrastructure. Most important were the fiber-optic cables that largely have replaced the copper telephone wires and the satellite and microwave transmissions that, in an earlier era, were the most important targets for government surveillance.

Fiber-optic cables, many of which lie along the ocean floor, provide higher-quality transmission and greater capacity than earlier technology, with the latest able to carry thousands of gigabits per second.

The world’s hundreds of undersea cables now carry 99 percent of all intercontinental data, a category that includes most international phone calls, as well, says TeleGeography, a global research firm.

The fiber-optic networks have become a rich source of data for intelligence agencies. The Guardian newspaper reported last month that the Government Communications Headquarters, the British equivalent of the NSA, taps and stores data flowing through the fiber-optic cables touching that nation, a major transit point for data between Europe and the Americas. That program, code-named Tempora, shares data with the NSA, the newspaper said.

Tapping undersea transmission cables had been a key U.S. surveillance tactic for decades, dating back to the era when copper lines carrying sensitive telephone communications could be accessed by listening devices divers could place on the outside of a cable’s housing, said naval historian Norman Polmar, author of “Spy Book: The Encyclopedia of Espionage.”

“The U.S. has had four submarines that have been outfitted for these special missions,” he said.

But the fiber-optic lines — each no thicker than a quarter — were far more difficult to tap successfully than earlier generations of undersea technology, and interception operations ran the risk of alerting cable operators that their network had been breached.

It’s much easier to collect information from any of dozens of cable landing stations around the world — where data transmissions are sorted into separate streams — or in some cases from network operations centers that oversee the entire system, say those familiar with the technology who spoke on the condition of anonymity to discuss sensitive intelligence matters.

Expanding powers

In the aftermath of the Sept. 11 attacks, the NSA said its collection of communications inside the United States was constrained by statute, according to a draft report by the agency’s inspector general in 2009, which was obtained by The Post and the Guardian. The NSA had legal authority to conduct electronic surveillance on foreigners overseas, but the agency was barred from collecting such information on cables as it flowed into and through the United States without individual warrants for each target.

“By 2001, Internet communications were used worldwide, underseas cables carried huge volumes of communications, and a large amount of the world’s communications passed through the United States,” the report said. “Because of language used in the [Foreign Intelligence Surveillance] Act in 1978, NSA was required to obtain court orders to target e-mail accounts used by non-U.S. persons outside the United States if it intended to intercept the communications at a webmail service within the United States. Large numbers of terrorists were using such accounts in 2001.”

As a result, after White House and CIA officials consulted with the NSA director, President George W. Bush, through a presidential order, expanded the NSA’s legal authority to collect communications inside the United States. The President’s Surveillance Program, the report said, “significantly increased [NSA’s] access to transiting foreign communications.”

Gen. Michael Hayden, then the NSA director, described that information as “the real gold of the program” that led to the identification of threats within the United States, according to the inspector general’s report.

Elements of the President’s Surveillance Program became public in 2005, when the New York Times reported the government’s ability to intercept e-mail and phone call content inside the United States without court warrants, sparking controversy. The FISA court began oversight of those program elements in 2007.

As these debates were playing out within the government, Team Telecom was making certain that surveillance capacity was not undermined by rising foreign ownership of the fiber-optic cables that the NSA was using.

The Global Crossing deal created particular concerns. The company had laid an extensive network of undersea cables in the world, but it went bankrupt in 2002 after struggling to handle more than $12 billion in debt.

Two companies, one from Singapore and a second from Hong Kong, struck a deal to buy a majority stake in Global Crossing, but U.S. government lawyers immediately objected as part of routine review of foreign investment into critical U.S. infrastructure.

President Gerald Ford in 1975 had created an interagency group — the Committee on Foreign Investment in the United States, or CFIUS — to review deals that might harm U.S. national security. Team Telecom grew out of that review process. Those executive branch powers were expanded several times over the decades and became even more urgent after the Sept. 11 attacks, when the Defense Department became an important player in discussions with telecommunications companies.

The Hong Kong company soon withdrew from the Global Crossing deal, under pressure from Team Telecom, which was worried that the Chinese government might gain access to U.S. surveillance requests and infrastructure, according to people familiar with the negotiations.

Singapore Technologies Telemedia eventually agreed to a slate of concessions, including allowing half of the board of directors of a new subsidiary managing the undersea cable network to consist of American citizens with security clearances. They would oversee a head of network operations, a head of global security, a general counsel and a human resources officer — all of whom also would be U.S. citizens with security clearances. The FBI and the departments of Defense, Justice and Homeland Security had the power to object to any appointments to those jobs or to the directors who had to be U.S. citizens.

U.S. law already required that telecommunications companies doing business in the United States comply with surveillance requests, both domestic and international. But the security agreement established the systems to ensure that compliance and to make sure foreign governments would not gain visibility into the working of American telecommunications systems — or surveillance systems, said Andrew D. Lipman, a telecommunications lawyer who has represented Global Crossing and other firms in negotiating such deals.

“These Network Security Agreements flesh out the details,” he said.

Lipman, a partner with Bingham McCutchen, based in Washington, said the talks with Team Telecom typically involve little give and take. “It’s like negotiating with the Motor Vehicle Department,” he said.

Singapore Technologies Telemedia sold Global Crossing in 2011 to Level 3 Communications, a company based in Colorado. But the Singaporean company maintained a minority ownership stake, helping trigger a new round of review by Team Telecom and a new Network Security Agreement that added several new conditions.

A spokesman for Level 3 Communications declined to comment for this article.

By Craig Timberg and Ellen Nakashima, Published: July 7, 2013

Find this story at 7 July 2013

© 1996-2014 The Washington Post

• Secret files show scale of Silicon Valley co-operation on Prism
• Outlook.com encryption unlocked even before official launch
• Skype worked to enable Prism collection of video calls
• Company says it is legally compelled to comply

Microsoft has collaborated closely with US intelligence services to allow users’ communications to be intercepted, including helping the National Security Agency to circumvent the company’s own encryption, according to top-secret documents obtained by the Guardian.

The files provided by Edward Snowden illustrate the scale of co-operation between Silicon Valley and the intelligence agencies over the last three years. They also shed new light on the workings of the top-secret Prism program, which was disclosed by the Guardian and the Washington Post last month.

The documents show that:

• Microsoft helped the NSA to circumvent its encryption to address concerns that the agency would be unable to intercept web chats on the new Outlook.com portal;

• The agency already had pre-encryption stage access to email on Outlook.com, including Hotmail;

• The company worked with the FBI this year to allow the NSA easier access via Prism to its cloud storage service SkyDrive, which now has more than 250 million users worldwide;

• Microsoft also worked with the FBI’s Data Intercept Unit to “understand” potential issues with a feature in Outlook.com that allows users to create email aliases;

• In July last year, nine months after Microsoft bought Skype, the NSA boasted that a new capability had tripled the amount of Skype video calls being collected through Prism;

• Material collected through Prism is routinely shared with the FBI and CIA, with one NSA document describing the program as a “team sport”.

The latest NSA revelations further expose the tensions between Silicon Valley and the Obama administration. All the major tech firms are lobbying the government to allow them to disclose more fully the extent and nature of their co-operation with the NSA to meet their customers’ privacy concerns. Privately, tech executives are at pains to distance themselves from claims of collaboration and teamwork given by the NSA documents, and insist the process is driven by legal compulsion.

In a statement, Microsoft said: “When we upgrade or update products we aren’t absolved from the need to comply with existing or future lawful demands.” The company reiterated its argument that it provides customer data “only in response to government demands and we only ever comply with orders for requests about specific accounts or identifiers”.

In June, the Guardian revealed that the NSA claimed to have “direct access” through the Prism program to the systems of many major internet companies, including Microsoft, Skype, Apple, Google, Facebook and Yahoo.

Blanket orders from the secret surveillance court allow these communications to be collected without an individual warrant if the NSA operative has a 51% belief that the target is not a US citizen and is not on US soil at the time. Targeting US citizens does require an individual warrant, but the NSA is able to collect Americans’ communications without a warrant if the target is a foreign national located overseas.

Since Prism’s existence became public, Microsoft and the other companies listed on the NSA documents as providers have denied all knowledge of the program and insisted that the intelligence agencies do not have back doors into their systems.

Microsoft’s latest marketing campaign, launched in April, emphasizes its commitment to privacy with the slogan: “Your privacy is our priority.”

Similarly, Skype’s privacy policy states: “Skype is committed to respecting your privacy and the confidentiality of your personal data, traffic data and communications content.”

But internal NSA newsletters, marked top secret, suggest the co-operation between the intelligence community and the companies is deep and ongoing.

The latest documents come from the NSA’s Special Source Operations (SSO) division, described by Snowden as the “crown jewel” of the agency. It is responsible for all programs aimed at US communications systems through corporate partnerships such as Prism.

The files show that the NSA became concerned about the interception of encrypted chats on Microsoft’s Outlook.com portal from the moment the company began testing the service in July last year.

Within five months, the documents explain, Microsoft and the FBI had come up with a solution that allowed the NSA to circumvent encryption on Outlook.com chats

A newsletter entry dated 26 December 2012 states: “MS [Microsoft], working with the FBI, developed a surveillance capability to deal” with the issue. “These solutions were successfully tested and went live 12 Dec 2012.”

Two months later, in February this year, Microsoft officially launched the Outlook.com portal.

Another newsletter entry stated that NSA already had pre-encryption access to Outlook email. “For Prism collection against Hotmail, Live, and Outlook.com emails will be unaffected because Prism collects this data prior to encryption.”

Microsoft’s co-operation was not limited to Outlook.com. An entry dated 8 April 2013 describes how the company worked “for many months” with the FBI – which acts as the liaison between the intelligence agencies and Silicon Valley on Prism – to allow Prism access without separate authorization to its cloud storage service SkyDrive.

The document describes how this access “means that analysts will no longer have to make a special request to SSO for this – a process step that many analysts may not have known about”.

The NSA explained that “this new capability will result in a much more complete and timely collection response”. It continued: “This success is the result of the FBI working for many months with Microsoft to get this tasking and collection solution established.”

A separate entry identified another area for collaboration. “The FBI Data Intercept Technology Unit (DITU) team is working with Microsoft to understand an additional feature in Outlook.com which allows users to create email aliases, which may affect our tasking processes.”

The NSA has devoted substantial efforts in the last two years to work with Microsoft to ensure increased access to Skype, which has an estimated 663 million global users.

One document boasts that Prism monitoring of Skype video production has roughly tripled since a new capability was added on 14 July 2012. “The audio portions of these sessions have been processed correctly all along, but without the accompanying video. Now, analysts will have the complete ‘picture’,” it says.

Eight months before being bought by Microsoft, Skype joined the Prism program in February 2011.

According to the NSA documents, work had begun on smoothly integrating Skype into Prism in November 2010, but it was not until 4 February 2011 that the company was served with a directive to comply signed by the attorney general.

The NSA was able to start tasking Skype communications the following day, and collection began on 6 February. “Feedback indicated that a collected Skype call was very clear and the metadata looked complete,” the document stated, praising the co-operation between NSA teams and the FBI. “Collaborative teamwork was the key to the successful addition of another provider to the Prism system.”

ACLU technology expert Chris Soghoian said the revelations would surprise many Skype users. “In the past, Skype made affirmative promises to users about their inability to perform wiretaps,” he said. “It’s hard to square Microsoft’s secret collaboration with the NSA with its high-profile efforts to compete on privacy with Google.”

The information the NSA collects from Prism is routinely shared with both the FBI and CIA. A 3 August 2012 newsletter describes how the NSA has recently expanded sharing with the other two agencies.

The NSA, the entry reveals, has even automated the sharing of aspects of Prism, using software that “enables our partners to see which selectors [search terms] the National Security Agency has tasked to Prism”.

The document continues: “The FBI and CIA then can request a copy of Prism collection of any selector…” As a result, the author notes: “these two activities underscore the point that Prism is a team sport!”

In its statement to the Guardian, Microsoft said:

We have clear principles which guide the response across our entire company to government demands for customer information for both law enforcement and national security issues. First, we take our commitments to our customers and to compliance with applicable law very seriously, so we provide customer data only in response to legal processes.

Second, our compliance team examines all demands very closely, and we reject them if we believe they aren’t valid. Third, we only ever comply with orders about specific accounts or identifiers, and we would not respond to the kind of blanket orders discussed in the press over the past few weeks, as the volumes documented in our most recent disclosure clearly illustrate.

Finally when we upgrade or update products legal obligations may in some circumstances require that we maintain the ability to provide information in response to a law enforcement or national security request. There are aspects of this debate that we wish we were able to discuss more freely. That’s why we’ve argued for additional transparency that would help everyone understand and debate these important issues.

In a joint statement, Shawn Turner, spokesman for the director of National Intelligence, and Judith Emmel, spokeswoman for the NSA, said:

The articles describe court-ordered surveillance – and a US company’s efforts to comply with these legally mandated requirements. The US operates its programs under a strict oversight regime, with careful monitoring by the courts, Congress and the Director of National Intelligence. Not all countries have equivalent oversight requirements to protect civil liberties and privacy.

They added: “In practice, US companies put energy, focus and commitment into consistently protecting the privacy of their customers around the world, while meeting their obligations under the laws of the US and other countries in which they operate.”

• This article was amended on 11 July 2013 to reflect information from Microsoft that it did not make any changes to Skype to allow Prism collection on or around July 2012.

Glenn Greenwald, Ewen MacAskill, Laura Poitras, Spencer Ackerman and Dominic Rushe
The Guardian, Friday 12 July 2013

Find this story at 12 July 2013

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

Microsoft arbeitet angeblich intensiv mit US-Geheimdiensten zusammen. Nach Informationen, die Edward Snowden dem “Guardian” zugespielt hat, soll der Konzern den Ermittlern Zugang zu E-Mails und Skype-Gesprächen gewährt und sogar die firmeneigene Verschlüsselung ausgehebelt haben.

Hamburg/London – Edward Snowden hat mit seinen Enthüllungen über die globale Datenschnüffelei der US-Geheimdienste nicht nur die amerikanische Politik in helle Aufregung versetzt, sondern auch die dortige IT-Branche. Giganten wie Facebook, Apple, Google und Microsoft haben bisher versucht, den Eindruck zu erwecken, ihre Zusammenarbeit mit den US-Behörden beschränke sich auf das Nötigste.

Jetzt aber berichtet der britische “Guardian”, wie Microsoft mit den Ermittlern kooperiert. Demnach zeigen Informationen von Snowden, dass das Unternehmen seit drei Jahren intensiv mit US-Geheimdiensten zusammenarbeitet.

Die National Security Agency (NSA) habe etwa die Sorge geäußert, Web-Chats auf dem neuen Outlook.com-Portal nicht mitlesen zu können. Microsoft habe daraufhin der NSA geholfen, die konzerneigene Verschlüsselungstechnik zu umgehen. Dieses Vorgehen soll sich dem Bericht zufolge nicht auf die Web-Chats beschränkt haben: Die NSA soll auch Zugang zu E-Mails auf Outlook.com und Hotmail trotz der Verschlüsselung gehabt haben.

Auch der Internettelefoniedienst Skype, den Microsoft im Oktober 2011 gekauft hat, geriet ins Visier der NSA: Laut “Guardian” hat die Firma Geheimdiensten ermöglicht, im Rahmen des “Prism”-Überwachungsprogramms sowohl Video- als auch Audio-Unterhaltungen mitzuschneiden.

Microsoft begründete sein Vorgehen mit rechtlichen Zwängen: “Wenn wir Produkte verbessern, müssen wir uns weiterhin Anfragen beugen, die mit dem Gesetz in Einklang sind.” Das Unternehmen betonte, dass es Kundendaten nur auf Anfrage der Regierung herausgebe – und auch das nur, wenn es um spezifische Konten oder Nutzer gehe.

Spannungen zwischen Silicon Valley und Obama-Regierung

Aus den Unterlagen geht laut “Guardian” hervor, dass das durch “Prism” gesammelte Material routinemäßig an das FBI und den US-Auslandsgeheimdienst CIA geht. In einem NSA-Dokument sei von einem “Mannschaftssport” die Rede.

Die neuen Informationen zeigen nach Angaben des “Guardian” auch, dass es Spannungen zwischen dem Silicon Valley, Standort zahlreicher Computerunternehmen, und der Regierung von US-Präsident Barack Obama gibt. Alle großen Technologiefirmen drängten die US-Regierung, ihnen zu erlauben, das Ausmaß der Zusammenarbeit mit den Behörden öffentlich zu machen, um den Datenschutzbedenken ihrer Kunden gerecht zu werden.

11. Juli 2013, 23:34 Uhr

Find this story at 11 July 2013

© SPIEGEL ONLINE 2013

In the magazine earlier this month, I wrote about Greg Chung, a Chinese-American engineer at Boeing who worked on NASA’s space-shuttle program. In 2009, Chung became the first American to be convicted in a jury trial on charges of economic espionage, for passing unclassified technical documents to China.

While reporting the story, I learned a great deal about an earlier investigation involving another Chinese-American engineer, named Chi Mak, who led F.B.I. agents to Greg Chung. The Mak case, which began in 2004, was among the F.B.I.’s biggest counterintelligence investigations, involving intense surveillance that went on for more than a year.

The stakes were high: at that time, the F.B.I. did not have a stellar record investigating Chinese espionage. Three years earlier, the government had been publicly humiliated by its failed attempt to prosecute the Chinese-American scientist Wen Ho Lee on charges of passing nuclear secrets from the Los Alamos National Laboratory to China, in a case that came to be seen by some observers as an example of racial prejudice. The investigation of Chi Mak—followed by the successful investigation and prosecution of Greg Chung—turned out to be a milestone in the F.B.I.’s efforts against Chinese espionage, and demonstrated that Chinese spies had indeed been stealing U.S. technological secrets.

While Chung volunteered his services to China out of what seemed to be love for his motherland, the F.B.I. believed that Mak was a trained operative who had been planted in the U.S. by Chinese intelligence. Beginning in 1988, Mak had worked at Power Paragon, a defense company in Anaheim, California, that developed power systems for the U.S. Navy. The F.B.I. suspected that Mak, who immigrated to the U.S. from Hong Kong in the late nineteen-seventies, had been passing sensitive military technology to China for years.

The investigation began when the F.B.I. was tipped off to a potential espionage threat at Power Paragon. The case was assigned to a special agent named James Gaylord; since the technologies at risk involved the Navy, Gaylord and his F.B.I. colleagues were joined by agents from the Naval Criminal Investigation Service. Mak was put under extensive surveillance: the investigators installed a hidden camera outside his home, in Downey, California, to monitor his comings and goings, and surveillance teams followed him wherever he went. All of his phone calls were recorded.

A short and energetic sixty-four-year-old with a quick smile, Mak was a model employee at Power Paragon. Other workers at the company often turned to him for help in solving problems, and Mak provided it with the enthusiasm of a man who appeared to live for engineering. His assimilation into American life was limited to the workplace: he and his wife, Rebecca, led a quiet life, never socializing with neighbors. Rebecca was a sullen, stern woman whose proficiency in English had remained poor during her two and a half decades in the United States. She never went anywhere without Mak, except to take a walk around the neighborhood in the morning.

Sitting around the house—secret audio recordings would later show—the two often talked about Chinese politics, remarking that Mao, like Stalin, was misunderstood by history. The influence of Maoist ideology was, perhaps, evident in the Maks’ extreme frugality: they ate their meals off of newspapers, which they would roll up and toss in the garbage. Every Saturday morning, after a game of tennis, they drove to a gas station and washed their car using the mops and towels there. From the gas station, the Maks drove to a hardware store and disappeared into the lumber section for ten minutes, never buying anything. For weeks, the agents following them wondered if the Maks were making a dead drop, but it turned out that the lumber section offered free coffee at that hour.

* * *
One evening in September, 2004, Gaylord drove to a playground next to the freeway in Downey. About two dozen of Gaylord’s colleagues from the F.B.I. were already gathered there, including a team from the East Coast that specialized in making clandestine entries into the homes of investigation suspects. That night, they planned to conduct a secret search of Mak’s house. Mak and Rebecca were vacationing in Alaska, and this gave agents an opportunity to use a court order authorizing them to enter the Maks’ residence in their absence.

For weeks, agents had been watching Blandwood Road, the street the Maks lived on, researching the nightly patterns of nearby neighbors. The person next door routinely woke up at three to go to the bathroom, walking past a window that offered a partial view into the Maks’ house. Behind the Maks’ residence was a dog that was given to barking loudly. A neighbor across the street came out every morning at four to smoke a cigarette. If any of them were to raise an alarm, the search would not remain secret. Mak would find out and, if he was indeed a spy, it would become harder to find evidence against him.

Shortly before midnight, Gaylord and two other agents got into a Chevy minivan with the middle and back rows of seats removed. The vehicle was identical in appearance to the one that Mak drove; it would raise no suspicions even if neighbors happened to notice it. The agents lay down flat in the back of the van, leaving only the driver visible from the street. After getting the go-ahead from a surveillance team, the van pulled out from the playground and drove to Blandwood Road, stopping a short distance from the Maks’ house.

The group of entry specialists was already inside the house. Gaylord gently opened the front door and entered, letting two other agents in behind him. The men stood motionless, waiting for their eyes to adjust to the darkness. Everything they could see was covered in a thick layer of dust, including a model airplane on a coffee table and a vacuum cleaner in the hallway. In the dim light, Gaylord saw stacks of documents, some two to three feet high, everywhere: by the front door, on the dinner table, in the home office.

The agents began photographing the documents, taking care to put them back exactly as they had been. Among the stacks were manuals and designs for power systems on U.S. Navy ships and concepts for new naval technologies under development. One set of documents contained information about the Virginia-class submarines, describing ways to cloak submarine propellers and fire anti-aircraft weapons underwater.

The agents took pictures of other materials: tax returns, travel documents, and an address book listing Mak’s contacts, including several other engineers of Chinese origin living in California. This is where the F.B.I. first came across the name Greg Chung.

* * *
The F.B.I. was also watching Chi Mak’s younger brother, Tai Mak, who had moved to the U.S. from Hong Kong in 2001. Tai was a broadcast engineer for a Hong Kong-based satellite-television channel, Phoenix TV, which is partly owned by the Chinese government. He lived in Alhambra, about twelve miles from Downey, with his wife, Fuk Li, and their two teen-age children, Billy and Shirley.

Fuk and Rebecca didn’t get along, and would bad-mouth each other to their husbands. Still, the two families got together every few weeks, usually at a Chinese restaurant in Alhambra, which has a large Chinese-American population. A frequent topic of conversation was Fuk’s aging mother, who lived alone in Guangzhou. Fuk and Tai were concerned about her health, and they depended on a family friend named Pu Pei-liang, a scholar at the Center for Asia Pacific Studies at Sun Yat-sen University, to check on her periodically.

Every week, agents inspected the trash from both families’ houses, after offloading it from a garbage truck. “It’s not a fun duty, especially in the summertime, here in California,” Gaylord told me. The job fell mostly to Gaylord’s younger colleagues, who would lay the garbage out in a parking lot or a garage and rummage through it.

The trash searches and the surveillance went on for months, but they yielded no evidence. “I never said it, but I thought, Wow, we’re using a lot of resources, but we haven’t proved anything yet,” Gaylord told me. Then, one day in February, 2005, Jessie Murray, an agent who spoke Mandarin, found several torn-up bits of paper with Chinese text while going through Chi and Rebecca’s trash. She put them in a Ziploc bag and brought them to the office.

The agents assembled the contents of the bag like a jigsaw puzzle. Patched together, the pieces constituted two documents, one handwritten and the other machine-printed. Gunnar Newquist, an investigator assigned to the case by the N.C.I.S., spotted an English phrase at the bottom of the handwritten sheet. “DDX,” he said, reading it aloud. “That’s a Navy destroyer.”

The handwritten text turned out to be a list of naval technologies and programs: submarine propulsion networks; systems for defending against nuclear, chemical, and biological attacks; and others. On the printed sheet were instructions about going to conferences to collect information. Gaylord was certain that the two documents were tasking lists from Chinese intelligence.

DDX-handwritten-tasking-list-580.jpg

Tasking-List-(Machine-Written)-580.jpg

In October, the F.B.I. made another covert entry into Chi Mak’s house and installed a hidden camera above the dining-room table; the surveillance video from that camera can be seen below. Days later, on a Sunday morning, agents observed Mak sitting at the table, inserting CDs into a laptop and talking to Rebecca about the information that he was copying. All of it related to the Navy, including a paper about developing a quieter motor for submarines, a project that Mak was in charge of at Power Paragon.

Combing through translated phone conversations from the previous week, investigators learned that Fuk and Tai were planning to leave California for China the following Friday. They discovered a call that Tai had made to Pu, the family friend in Guangzhou, which Tai began with a strange introduction: “I am with Red Flower of North America.” Tai told Pu that he was coming to China for the spring trade show, and that he was bringing an assistant. Pu asked him to call upon arriving at the Guangzhou airport, using a phone card that Pu had given him earlier. Tai was clearly speaking in code: he wasn’t connected to any organization named Red Flower, and it was autumn, not spring.

The following day, Tai and Fuk talked about the upcoming trip. Fuk asked if they would have to carry a heavy load of documents from Chi Mak, as they had done in the past. Tai assured her that, this time, they only needed to put the information on disks, using the computer that Pu had given them.

Fuk and Tai were arrested at the Los Angeles airport after security agents searched their luggage and found an encrypted disk containing the files that Chi Mak had copied. On the same night, F.B.I. agents arrested Chi and Rebecca Mak just as they were preparing for bed. The two sat silently on the couch while agents searched the house, for the first time with the lights turned on.

* * *
During a six-week jury trial in 2007, government prosecutors painted Chi Mak as a trained spy who started his career as an intelligence officer for the Chinese government during his years in Hong Kong. Mak’s first assignment, according to the prosecution, was monitoring the movements of U.S. Navy ships entering and leaving the Hong Kong harbor during the Vietnam War, a job that Mak performed assiduously while working at his sister’s tailor shop. Gunnar Newquist testified that, in an interview given to Newquist and a fellow N.C.I.S. agent shortly after his arrest, Mak had confessed to sending information about commercial and military technologies to China since the early eighties. Mak denied making any such confession.

On May 10, 2007, the jury convicted Mak on charges of conspiring to export U.S. military technology to China and acting as an unregistered agent of a foreign government. Weeks later, Tai, Fuk, and their son, Billy, pleaded guilty to being part of the conspiracy. Rebecca Mak pleaded guilty to being an unregistered foreign agent. Mak was sentenced to twenty-four and a half years; Tai received a sentence of ten years. Fuk and Billy were deported to China, as was Rebecca—after she had spent three years in prison.

When I went to see Mak, last summer, at the Federal Correctional Institution, in Lompoc, California, a minimum-security prison near Vandenberg Air Force Base, he denied that he had ever worked for Chinese intelligence. Mak also insisted that Chung hadn’t spied for China, either. He said that they had both been unfairly targeted by investigators, as part of a politically motivated campaign against China by U.S. law enforcement agencies. The reason he’d come to the U.S. in the seventies, Mak said, was not to work as a sleeper agent—as the prosecution had claimed—but to advance professionally and to see the world. At one point, he caught himself going on at length about an aircraft-powering generator he had helped to design in the eighties. “When I talk technical, I get excited,” he said, grinning sheepishly.

His enthusiasm waned when I asked him about the list of military technologies that the F.B.I. had recovered from his trash. He told me that he’d found it inside a book on Chinese medicine that his nephew, Billy, brought back for him from a trip to China. “Maybe somebody was trying to take advantage of Billy,” he said. When I pressed him to guess who the sender of the list might have been, Mak got fidgety and grim. “It could have been Pu Pei-liang,” he said, finally. He insisted that the only thing he’d ever done with the list was tear it up.

Mak acknowledged that he’d sent papers to Pu in the past, but said that they were all from the open literature. The CDs he’d given to Tai before Tai’s aborted trip to China didn’t contain anything sensitive, either, he said, alleging that the prosecution had greatly exaggerated their importance. Still, I asked, who were the CDs meant for? Mak narrowed his eyes, as if trying hard to remember. “I’m not too sure,” he said. “I’m not too sure.”

MAY 16, 2014
POSTED BY YUDHIJIT BHATTACHARJEE

Find this story at 16 May 2014

© 2013 Condé Nast.

SANTA ANA, Calif. — A Chinese-born engineer convicted in the United States’ first economic espionage trial was sentenced Monday to more than 15 years in prison for stealing sensitive information on the U.S. space program with the intent of passing it to China.

Dongfan “Greg” Chung, a Boeing stress analyst with high-level security clearance, was convicted in July of six counts of economic espionage and other federal charges for storing 300,000 pages of sensitive papers in his Southern California home. Prosecutors alleged the papers included information about the U.S. space shuttle, a booster rocket and military troop transports.

Before reading the sentence, U.S. District Judge Cormac J. Carney said he didn’t know exactly what information Chung had passed to China over a 30-year period. But just taking the “treasure trove of documents” from Boeing Co., a key military contractor, constituted a serious crime, he said.

“What I do know is what he did, and what he did pass, hurt our national security and it hurt Boeing,” the judge said.

During brief remarks, Chung, 74, begged for a lenient sentence, saying he had taken the information to write a book.

“Your honor, I am not a spy, I am only an ordinary man,” said Chung, who wore a tan prison jumpsuit with his hands cuffed to a belly chain as his wife and son watched from the audience. “Your honor, I love this country. … Your honor, I beg your pardon and let me live with my family peacefully.”

Outside court, defense attorney Thomas Bienert said he would appeal.

“We have a different view of the facts and the evidence than the judge,” Bienert said. “We think the sentence should have been a lot less given the conduct involved.”

Prosecutors had requested a 20-year sentence, in part to send a message to other would-be spies, but the judge said he couldn’t determine exactly how much the breaches hurt Boeing and the nation.

Carney also cited the engineer’s age and frail health in going with a sentence of 15 years and eight months. Chung had a stroke within the past two years and was hospitalized several days ago with a gastrointestinal problem, Bienert said.

“It’s very difficult having to make a decision where someone is going to have to spend the rest of their adult life in prison,” Carney said. “I take no comfort or satisfaction in that.”

Assistant U.S. Attorney Greg Staples noted in his sentencing papers that Chung had amassed $3 million in personal wealth while betraying his adopted country.

“I know that there’s a lot of emotion on the defense side about what impact the sentence will have on the defendant, but I would like to put on the record that we are here speaking for the rest of the families in the United States who go to bed at night expecting that the security of this country is being looked out for,” Staples said.

The government accused Chung of using his decades-long career at Boeing and Rockwell International to steal papers on aerospace and defense technologies.

During the non-jury trial, the government showed photos of every available surface in Chung’s home covered with thick stacks of paper, and investigators testified about finding more documents in a crawl space. They said Boeing invested $50 million in the technology over a five-year period.

Chung’s lawyers argued then – and again at sentencing – that he may have violated Boeing policy by bringing the papers home, but he didn’t break any laws, and the U.S. government couldn’t prove he had given secrets to China.

The government believes Chung began spying for the Chinese in the late 1970s, a few years after he became a naturalized U.S. citizen and was hired by Rockwell.

Chung worked for Rockwell until it was bought by Boeing in 1996. He stayed with the company until he was laid off in 2002, then was brought back a year later as a consultant. He was fired when the FBI began its investigation in 2006.

When agents searched Chung’s home in Orange that year, they discovered thousands of pages of documents on a phased-array antenna being developed for radar and communications on the U.S. space shuttle and a $16 million fueling mechanism for the Delta IV booster rocket, used to launch manned space vehicles.

Agents also found documents on the C-17 Globemaster troop transport used by the U.S. Air Force and militaries in Britain, Australia and Canada – but the government later dropped charges related to those finds.

Prosecutors discovered Chung’s activities while investigating Chi Mak, another suspected Chinese spy living and working in Southern California. Mak was convicted in 2007 of conspiracy to export U.S. defense technology to China and sentenced to 24 years in prison.

Chung was the first person to be tried under the economic espionage provision of the Economic Espionage Act, which was passed in 1996 after the U.S. realized China and other countries were targeting private businesses as part of their spy strategies.

Since then, six economic espionage cases have settled before trial. In some of the cases, defendants were sentenced to just a year or two in prison.

Another economic espionage case went to trial in San Jose after Chung’s conviction, but a jury deadlocked on charges against two men accused of stealing computer chip blueprints from their Silicon Valley employer.

Prosecutors have previously tried cases under a different part of the 1996 act that deals with the theft of trade secrets.

GILLIAN FLACCUS 02/ 8/10 04:52 PM ET AP

Find this story at 2 August 2010

Copyright © 2014 TheHuffingtonPost.com, Inc.

In this Feb 19, 2008 file photo, Dongfan “Greg” Chung, is shown leaving the U.S. District Court in Santa Ana, Calif., with an unidentified woman. The prosecution and defense presented opening statements Tuesday June 2, 2009 in the first economic espionage case to reach trial in the United States. Prosecutors laid out their case against Chung, 73, in U.S. District Court in Santa Ana, Calif. AP PHOTO/ORANGE COUNTY REGISTER, CHRISTINA HOUSE

A Chinese-born engineer was convicted Thursday of stealing trade secrets critical to the U.S. space program in the nation’s first economic espionage trial.

A federal judge found former Boeing Co. engineer Dongfan “Greg” Chung guilty of six counts of economic espionage and other charges for taking 300,000 pages of sensitive documents that included information about the U.S. space shuttle and a booster rocket.

“Mr. Chung has been an agent of the People’s Republic of China for over 30 years,” U.S. District Judge Cormac J. Carney said while issuing his ruling.

Federal prosecutors accused the 73-year-old stress analyst of using his 30-year career at Boeing and Rockwell International to steal the documents. They said investigators found papers stacked throughout Chung’s house that included sensitive information about a fueling system for a booster rocket – documents that Boeing employees were ordered to lock away at the close of work each day. They said Boeing invested $50 million in the technology over a five-year period.

The judge convicted Chung of six counts of economic espionage, one count of acting as a foreign agent, one count of conspiracy, and one count of lying to federal agent. He was acquitted of obstruction of justice.

Chung opted for a non-jury trial that ended June 24. During the three-week trial, defense attorneys said Chung was a “pack rat” who hoarded documents at his house but insisted he was not a spy.

They said Chung may have violated Boeing policy by bringing the papers home, but he didn’t break any laws and the U.S. government couldn’t prove he had given any of the information to China.

Attorneys and prosecutors were not immediately available for comment after the verdict.

The Economic Espionage Act was passed in 1996 to help the government crack down on the theft of information from private companies that contract with the government to develop U.S. space and military technologies.

By CBSNEWSAPJuly 16, 2009, 1:18 PM

Find this story at 16 July 2009

© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Spies such as Mata Hari, heroic nurse Edith Cavell, suffragette Sylvia Pankhurst and the Boy Scouts feature in documents

Exotic spies, heroes, and known and suspected communists feature in top-secret MI5 files available online for the first time on Thursday to mark the 100th anniversary of the first world war.

Mata Hari, Edith Cavell, Sir Roger Casement, Arthur Ransome, Sidney Reilly, a leading suffragette and the Boy Scouts were among those MI5 kept under surveillance in its early years as Britain’s Security Service.

Mata Hari, one of history’s most celebrated honey-trap spies, first came to MI5’s attention in December 1915 when she arrived at Folkestone on the Dieppe boat train. She admitted her destination was The Hague to be near her lover Baron Van der Capellen, a colonel in the Dutch Hussars.

The following year, MI5’s informant in The Hague, codenamed “T”, reported: “Mata Hari is a demi-mondaine who is in relation with highly placed people and during her sojourn in France she made the acquaintance of many French and Belgian officers. She is suspected of having been to France on an important mission for the Germans.”

In November 1916, questioned by MI5, Mata Hari claimed that a French consul in Spain had subsequently asked her to go to Austria to spy on that country’s forces.

A renowned dancer, Mata Hari was a Dutch divorcee born Marguerite Gertrude Zelle in the Dutch East Indies. A French intelligence report dated 22 May 1917, shown to a MI5 officer in Paris, noted: “Mata Hari today confessed that she has been engaged by Consul Cremer of Amsterdam for the German Secret Service. She was paid 20,000 francs in advance.”

She was shot by a French firing squad in 1917.

Edith Cavell, a British nurse at a Red Cross hospital in Belgium, was executed by a German firing squad in October 1915 for helping 200 allied soldiers to escape. The files in the National Archives show that British diplomats clung to the hope that Germany would not execute a woman who was regarded as a heroine.

An MI5 agent in Liège said he had been told by a reliable source that “the two spies who denounced Nurse Cavell have both been killed, one by a bullet in the head, the other by a dagger thrust in the chest”.

Sir Roger Casement, a British consul in Africa and South America knighted for his work in exposing the exploitation and slaughter of Africans and South American Indians, and Sidney Reilly, a naturalised Russian Jew dubbed the Ace of Spies, are other victims of espionage who feature among the 150 MI5 files.

Casement was arrested on a beach in Co Kerry, three days before the 1916 Easter rising, after landing in a boat that had picked him up from a German submarine. A trawler accompanying the submarine and carrying 20,000 guns was scuttled after being intercepted.

The MI5 documents show Casement knew the Easter rising was doomed to failure after Germany reneged on its promises to send troops to help the rebels. The UK government used his “black diaries” to smear him and sabotage a campaign to save his life.

“I have done nothing dishonourable, as you will one day learn,” he told Frank Hall, a senior MI5 officer. Casement was hanged in Pentonville prison on 3 August 1916.

Reilly was recruited to work for the British secret intelligence service, MI6. When he died in 1925 the Russians claimed a guard had shot him as he crossed the border with Finland. MI5 documents suggest he was executed by Bolsheviks in 1925.

Reilly had many wives, according to MI5. A Special Branch informer reported that his second wife, actress Pepita Bobadilla, went to the Russian embassy in Paris following his death. As she applied for a visa, she told the Russians her husband had been “spying for the British government”.

Arthur Ransome, author of Swallows and Amazons, caught MI5’s attention as correspondent for the Manchester Guardian in Moscow who married Trotsky’s secretary, Evgenia Petrovna Shelepina.

British officials told MI5 that Ransome was “exceedingly clever and interesting fellow – but an out and out Bolshevist”. The British consul and MI6 officer in Moscow, Robert Bruce Lockhart, soon corrected them. Ransome, who was given the codename S76, was a valuable intelligence asset during the chaos of the Russian revolution, he said.

The files include one on the suffragette Sylvia Pankhurst, one of MI5’s later targets. MI5 noted that in 1940 she wrote to Viscount Swinton, chairman of a committee investigating Fifth Columnists, sending him a list of active Fascists still at large and of anti-Fascists who had been interned. A copy of the letter includes a note by Swinton, saying: “I should think a most doubtful source of information.”

The files also show how MI5 was concerned that the Boy Scouts were being infiltrated by Communists after the first world war.

The files can be accessed at the National Archives link – First World War 100.

Richard Norton-Taylor
The Guardian, Wednesday 9 April 2014 22.43 BST

Find this story at 9 April 2014

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

World War I spy Mata Hari refused to fully confess to espionage before facing French firing squad in 1917.

Mata Hari was a wildly-popular Dutch exotic dancer, who was executed as a German spy in 1917.

The spy known as “Mata Hari” was glib in her final prison interrogation before her life ended in front of a French firing squad in the First World War, according to formerly top secret files from the British intelligence agency MI5.
Mata Hari, once a wildly popular Dutch exotic dancer, didn’t appear fazed when an interrogator confronted her with a long list of her lovers, an MI5 report released earlier this month states.
“When faced with her acquaintances with officers of all ranks and all nations, she replied that she loved all officers, and would rather have as her lover a poor officer than a rich banker,” the MI5 files note.
Walking the Western Front:
• Where John McCrae wrote ‘In Flanders Fields’
• The ‘Trench of Death’
Her lovers included a wide range of ages and nationalities, including Germans, French, Russians, Swiss and Spaniards, the files state.
At the time of her execution on Oct. 15, 1917, in a muddy field outside Paris, she was accused of feeding Germany information that cost some 50,000 Allied troops their lives.
But two academics who have studied her case say they don’t believe she provided Germany with any useful information for its war effort.
“She really did not pass on anything that you couldn’t find in the local newspapers in Spain,” said Julie Wheelwright of City University in London, the author of The Fatal Lover: Mata Hari and the Myth of Women in Espionage.
Mata Hari was the stage name for Gertruda Margaretha Zelle, who was born July 8, 1876, in the Dutch East Indies to a Dutch father and a Javanese mother. Wheelwright said she became an exotic dancer after fleeing an abusive marriage.
Wheelwright described her as “an independent woman, a divorcee, a citizen of a neutral country, a courtesan and a dancer, which made her a perfect scapegoat for the French, who were then losing the war.”
“She was kind of held up as an example of what might happen if your morals were too loose,” Wheelwright said.
Wesley Wark, a security, intelligence and terrorism expert at the University of Ottawa, said Mata Hari provided France with a scapegoat when the country wrestled with emerging power for women and fears of losing the war.
“They needed a scapegoat and she was a notable target for scapegoating,” Wark said.
In the MI5 files, an intelligence officer sounds impressed with her attitude during her final days.
“She never made a full confession nor can I find … that she ever gave away anyone as her (accomplice),” the report states.
“She was a ‘femme forte’ and she worked alone,” the report concludes.
The newly released files show Mata Hari was trailed by Allied surveillance officers across France, Spain and England.
The officers noted that on Aug. 4, 1916, she wrote to a Don Diego de Leon and then met a Capt. Vladimir de Masloff, of the Russian army, stationed in France.
“He was very intimate with her from this date and constant letters pass between, he was her favourite lover,” the MI5 files state.
“Same day she met PROFESSOR MARIANI Captain Italian Army.”
While in custody in the ancient Prison de Saint-Lazare outside Paris, she admitted to having spied for the Germans, the MI5 files state.
A file dated May 22, 1917 states: “Matahari today confessed that she has been engaged in Consul CREMER of Amsterdam for the German Secret Service. She was paid 20,000 (francs) in advance and her number was H.21.”
That file also notes her German spymasters gave her vials of invisible ink.
Much of her prison interrogation statement concerns mundane thoughts, not troop movements.
Her MI5 file includes the note: “She had discussed the life led by people in Paris, as regards supply of food etc., had said that the English officers in Paris treated their French Allies badly, although the French went out of their way to treat them ‘like Kings’; that the French nation might live to regret that they had ever allowed the English into the country … .”
Even if she wanted to divulge information, there wasn’t much she could say, Wark said. “Politics wasn’t really part of her world.”
Accounts of her execution say she waved off the offer of a blindfold or the last sacrament. She was reportedly blowing a kiss — at her lawyer, a nun or the firing squad, depending on who’s telling the story — the instant her life ended.
Wheelwright thinks this was likely bravado on the dancer’s part.
“This was going to be her last performance and she was going to go out in style,” she said. “She was playing to the crowd, which is what she always did.”

By: Peter Edwards Star Reporter, Published on Thu Apr 24 2014

Find this story at 24 April 2014

© Copyright Toronto Star Newspapers Ltd. 1996-2014

Mata Hari: beautiful exotic dancer turned espionage agent
Mata Hari, the glamorous World War I spy shot by the French in 1917, was watched by MI5 for two years, according to the newly released secret government papers.
The former wife of a Dutch army colonel, she was recruited by German intelligence while performing as a stripper in Berlin.

Special Report: Wartime Spies The sultry spy, who was notorious in prewar Paris for her exotic dancing and libidinous lifestyle, was interrogated twice by the British secret service but they could not force her to reveal her activities.

She later confessed all to French authorities and was executed. Her MI5 files note however that there was never any evidence that she passed on anything of military importance.

‘Unfavourable impression’

Mata Hari was born Margaretha Geertruida Zelle in Leeuwarden, The Netherlands.

She first attracted the suspicion of British officials in December 1915 and was arrested at the southern English port of Folkestone attempting to board a boat for France.

Under interrogation, she admitted she was heading for The Hague to live near her lover, a Dutch colonel. But MI5 could not pin anything further on her.

Her interrogator, Captain S S Dillon, noted at the time: “Although she had good answers to every question, she impressed me very unfavourably, but after having her very carefully searched and finding nothing, I considered I hadn’t enough grounds to refuse her embarkation.”

The report also noted that she was “handsome, bold … well and fashionably dressed” in a costume with “raccoon fur trimming and hat to match”.

Suspect

Mata Hari
MI5 decided to keep tabs
MI5 continued to monitored her after she settled in The Hague, and soon an informant revealed she was being paid by the German Embassy.

A February 1916 intelligence report noted that she was “in relation with highly placed people and during her sojourn in France she made the acquaintance of many French and Belgian officers”.

“She is suspected of having been to France on important mission for the Germans,” the report said. The report concluded that the matter was being followed up.

Wrongly suspected

In November 1916, British authorities removed Mata Hari from a steamer at the port of Falmouth en route from Spain to Holland, believing she was another German spy, Clara Benedix.

She was taken, along with her 10 travelling trunks, to be interviewed by MI5 and the police. She told them she had been recruited by a Belgian officer, to work for his country’s intelligence service.

She also alleged that the French consul in Vigo, Spain, had asked her to spy on Russian forces in Austria.

Death by firing squad

Once again there was insufficient evidence to detain her and she was sent back to Spain.

The following year she was arrested by the French authorities, court martialled and sentenced to death by firing squad.

A French intelligence report shown to MI5 noted: “Mata Hari today confessed that she has been engaged by Consul Cremer of Amsterdam for the German Secret Service.”

She admitted sending “general information of every kind procurable,” but mentioned no military secrets, it said.

Tuesday, 26 January, 1999, 23:22 GMT

Find this story at 26 January 1999

© BBC

Police received at least 144 complaints by victims about late Liberal MP Sir Cyril, but MI5 and Special Branch put pressure on officers to drop investigations, new book claims

Politicians, police and M15 covered up former MP Sir Cyril Smith’s sexual abuse of vulnerable boys as young as eight for four decades, it has been claimed.
Police received at least 144 complaints by victims about the late Liberal MP Sir Cyril, but MI5 and Special Branch put pressure on officers to drop investigations, according to a new book.
The 29st MP for Rochdale was able to continue his abuse while the authorities blocked prosecutions, and the Liberal Party even put his name forward for a knighthood in 1988 in spite of the rumours of his activities circulating around Westminster, it has been alleged.
Former Liberal party leader David, now Lord Steel, nominated Sir Cyril for the honour despite knowing of the allegations about the MP, it was reported.
Lord Steel’s involvement only emerged in recent weeks after a Freedom of Information battle.
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The current Lib Dem leader Nick Clegg sent a celebratory message that was read out at Sir Cyril’s 80th birthday party, which said: “You were a beacon for our party in the ’70s and ’80s and continue to be an inspiration to the people of Rochdale.”
A new book, written by one of Sir Cyril’s successors as MP for the Lancashire constituency, Labour’s Simon Danczuk, also reveals that child porn was found in the late MP’s car but police were ordered to release him.
Sir Cyril, who died aged 82 in 2010, was arrested repeatedly for “acts of gross indecency with young lads” in public toilets but no action was taken, according to the book Smile for the Camera: the Double Life of Cyril Smith.
A member of the Liberal party, which later merged with the Social Democratic Party to become the Liberal Democrats, Sir Cyril was also a visitor to the notorious Elm Guest house in South-west London, which is now the focus of a Scotland Yard investigation into an alleged VIP paedophile ring, the Daily Mail reported.
Sir Cyril, who was MP for Rochdale between 1972 and 1992, was governor of almost 30 schools, and in the 1960s he helped to open Cambridge House children’s home, where he abused boys, often subjecting them to spurious medical examinations, according to the book.
But when police launched an investigation, a senior police officer intervened to stop it, it has been claimed.
The book, co-written by Matthew Baker, also claims that senior Labour figures’ support of the Paedophile Information Exchange helped keep Sir Cyril “hidden from scrutiny”.
It claims that police officers were threatened with dismissal and gagged by the Official Secrets Act if they tried to expose the Sir Cyril’s sexual abuse of boys.
Mr Danczuk, Rochdale MP since 2010, first raised Sir Cyril’s case in the House of Commons in 2012 after victims contacted him to tell of their ordeals.
Lord Steel was unavailable for comment. Last year, he said he had asked Cyril Smith about the allegations of child abuse and accepted his denial of wrongdoing, the Daily Mail reported.
A spokesman for Mr Clegg said: “Clearly he would never have paid tribute to Cyril Smith if he had had any idea about these horrible allegations.”
A Liberal Democrat spokesperson said: “Cyril Smith’s acts were vile and repugnant and we have nothing but sympathy for those whose lives he ruined. His actions were not known to or condoned by anyone in the Liberal Party or the Liberal Democrats.”

By Melanie Hall11:22AM BST 12 Apr 2014

Find this story at 12 April 2014

© Copyright of Telegraph Media Group Limited 2014

For four decades, 29st politician was free to prey on vulnerable children as young as eight
Police received at least 144 complaints from victims yet authorities blocked any prosecution
New book serialised in Daily Mail details how Smith – who died in 2010 aged 82 – was repeatedly protected despite being arrested for sex crimes
MI5 and Special Branch officers put pressure on police to drop investigations
Child porn was found in Smith’s car but police were ordered to release him
Liberal Party put his name forward for knighthood in 1988 in spite of rumours of his sordid activities swirling around Westminster

The shocking scale of the Establishment cover-up of former Liberal MP Cyril Smith’s sickening sex abuse of boys is revealed today

The shocking scale of the Establishment cover-up of former Liberal MP Cyril Smith’s sickening sex abuse of boys is revealed today
The shocking scale of the Establishment cover-up of former Liberal MP Cyril Smith’s sickening sex abuse of boys is revealed today.
For four decades, the depraved 29st politician was free to prey on vulnerable children as young as eight.
Police received at least 144 complaints by victims of the predatory paedophile yet the authorities blocked any prosecution – allowing Smith brazenly to continue his abuse.
The Liberal Party even put his name forward for a knighthood in 1988 in spite of the rumours of his sordid activities swirling around Westminster.
David, now Lord Steel nominated him for the honour despite knowing of the allegations about the bachelor MP for Rochdale, the ex-Liberal leader’s involvement emerging only in recent weeks after a Freedom of Information battle.
At Smith’s 80th birthday party, a gushing message from current Lib Dem leader Nick Clegg was read out, which said: ‘You were a beacon for our party in the ’70s and ’80s and continue to be an inspiration to the people of Rochdale.’
Now, an explosive new book serialised in the Daily Mail details how Smith – who died in 2010 aged 82 – was repeatedly protected despite being arrested for a string of sex crimes.
Written by one of Smith’s successors as MP for the Lancashire constituency, Labour’s Simon Danczuk, the book reveals:
MI5 and Special Branch officers put pressure on police to drop investigations;
child porn was found in Smith’s car but police were ordered to release him;
he was repeatedly arrested for ‘acts of gross indecency with young lads’ in public toilets but no action was taken;
Smith was a visitor to the notorious Elm Guest house in South-west London, now the focus of a Scotland Yard investigation into an alleged VIP paedophile ring;
senior Labour figures’ support of the Paedophile Information Exchange helped keep Smith ‘hidden from scrutiny’.
In his book, Smile for the Camera: the Double Life of Cyril Smith, Mr Danczuk details Smith’s ‘rapacious sexual appetite’ and highlights chilling similarities between the northern MP and fellow paedophile Jimmy Savile.
For four decades, the depraved 29st politician (pictured above in 1972) was free to prey on vulnerable children as young as eight
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For four decades, the depraved 29st politician (pictured above in 1972) was free to prey on vulnerable children as young as eight
David, now Lord Steel (centre) nominated Smith for a knighthood despite knowing of the allegations about the bachelor MP for Rochdale, the ex-Liberal leader’s involvement emerging only in recent weeks after a Freedom of Information battle
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David, now Lord Steel (centre) nominated Smith for a knighthood despite knowing of the allegations about the bachelor MP for Rochdale, the ex-Liberal leader’s involvement emerging only in recent weeks after a Freedom of Information battle
Like the DJ, Smith – who in 1973 appeared on Savile’s Clunk Click TV show – portrayed himself as a charitable man supporting young boys to provide cover for his sordid activities.
But unlike in the Savile scandal, police forces around the country repeatedly investigated sex abuse allegations against Smith yet their efforts to prosecute the MP were constantly blocked.
The book details how police officers were threatened with dismissal and gagged by the Official Secrets Act if they attempted to expose the politician’s sordid activities.

More…
‘I’ve come to examine you’: From bogus medical examinations to punishment beatings, how paedophile Cyril Smith used his powerful public image to abuse boys
The truth about Labour apologists for paedophilia: Police probe child sex group linked to top party officials in wake of Savile
Knighted by Steel and eulogised by Clegg: Cyril Smith and the indelible shame of the Liberal Party
How Cyril Smith evaded the law: Sickening folly of the Left who aided his cause by advocating paedophilia
Mr Danczuk, Rochdale MP since 2010, first raised Smith’s case in the House of Commons in 2012 after victims contacted him to tell of their ordeals at the hands of the ‘29st bully’.
One young Liberal activist was sexually assaulted in Smith’s office in the House of Commons in the 1980s as other MPs, including then Labour leader Michael Foot, walked by.
Days later, the Crown Prosecution Service revealed that his victims’ claims were investigated by police on three separate occasion – in 1970, 1998 and 1999 – but each time files were submitted to prosecutors, they were rejected.
The Liberal Party, bruised by the negative publicity surrounding the 1979 conspiracy to murder trial of its leader Jeremy Thorpe (right) and aware of Smith’s ‘electoral Midas touch’, was eager to sweep the problems under the carpet
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The Liberal Party, bruised by the negative publicity surrounding the 1979 conspiracy to murder trial of its leader Jeremy Thorpe (right) and aware of Smith’s ‘electoral Midas touch’, was eager to sweep the problems under the carpet
The CPS belatedly agreed that Smith should have been prosecuted and Greater Manchester Police publicly acknowledged, amid ‘overwhelming evidence’, that he did sexually and physically abuse young boys.
The book, co-written by Matthew Baker, reveals that as far back as the 1950s, Rochdale police had their suspicions about the politician.
Smith, MP for Rochdale between 1972 and 1992, was governor of almost 30 schools. In the 1960s, he helped to open Cambridge House children’s home, where he abused boys, often subjecting them to spurious medical examinations.
But when police launched an investigation, the chief constable of Lancashire personally intervened to stop it.
In the 1970s Smith was arrested on a number of occasions in public toilets in London’s St James’s Park, a regular haunt for young male prostitutes after dark, but always walked free.
The cover-ups continued in the 1980s when Smith’s car was pulled over on the motorway near Northampton and traffic officers discovered child porn in the boot.
At Smith’s 80th birthday party, a gushing message from current Lib Dem leader Nick Clegg was read out, which said: ‘You were a beacon for our party in the ’70s and ’80s and continue to be an inspiration to the people of Rochdale’
+12
Now, an explosive new book serialised in the Daily Mail details how Smith – who died in 2010 aged 82 – was repeatedly protected despite being arrested for a string of sex crimes
+12
At Cyril Smith’s 80th birthday party, a gushing message from current Lib Dem leader Nick Clegg was read out, which said: ‘You were a beacon for our party in the ’70s and ’80s and continue to be an inspiration to the people of Rochdale’
‘The police were naturally disgusted and wanted to press charges,’ says the book. ‘But then a phone call was made from London and he was released without charge.’
When Rochdale police first started investigating him in 1972 they were threatened by the council’s Liberal leader and, according to Mr Danczuk’s book, rumours of his activities were well known in Westminster for many years.
But the Liberal Party, bruised by the negative publicity surrounding the 1979 conspiracy to murder trial of its leader Jeremy Thorpe and aware of Smith’s ‘electoral Midas touch,’ was eager to sweep the problems under the carpet .
David Steel, who took over from Mr Thorpe as party leader, even recommended Smith for his knighthood despite knowing of the sordid rumours that surfaced in 1979 that the MP had abused young boys.
The Cabinet Office had previously refused to disclose who had put Smith forward – claiming it would breach data protection rules – but the Information Commissioner’s Office ruled earlier this year that there was a ‘legitimate public interest’ in it being disclosed.
Lord Steel was unavailable for comment. Last year, he said he had asked Cyril Smith about the allegations of child abuse and accepted his denial of wrongdoing
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Lord Steel was unavailable for comment. Last year, he said he had asked Cyril Smith about the allegations of child abuse and accepted his denial of wrongdoing
Lord Steel was unavailable for comment. Last year, he said he had asked Cyril Smith about the allegations of child abuse and accepted his denial of wrongdoing.
A spokesman for Mr Clegg said last night: ‘Clearly he would never have paid tribute to Cyril Smith if he had had any idea about these horrible allegations.’
The book also describes how Labour politicians’ support for a notorious paedophile group that campaigned to legalise sex with children helped Smith evade justice for years.
Earlier this year the Mail revealed the extraordinary links between the National Council for Civil Liberties and the Paedophile Information Exchange.
Labour’s deputy leader Harriet Harman, her MP husband Jack Dromey, and former Health Secretary Patricia Hewitt held key roles in the NCCL, which in 1975 granted ‘affiliate’ status to the group of predatory paedophiles.
Smith was friends with PIE founding member Peter Righton and Mr Danczuk said the NCCL’s backing for PIE helped Smith’s crimes remain secret.
‘Worryingly, it seemed a fair few on the Left, including some who have subsequently become key figures in the Labour Party, were fooled into giving this hideous group shelter.
‘All of which helped Cyril’s cause and kept him hidden from scrutiny.’
Smith was a visitor to Elm Guest House, in Barnes, south west London, which is at the centre of the Metropolitan Police’s Operation Fernbridge.
A Liberal Democrat spokesman said: ‘Cyril Smith’s acts were vile and repugnant and we have nothing but sympathy for those whose lives he ruined. His actions were not known to or condoned by anyone in the Liberal Party or the Liberal Democrats.’

‘I’ve come to examine you’: From bogus medical examinations to punishment beatings, how paedophile Cyril Smith used his powerful public image to abuse boys
By SIMON DANCZUK
The huge man, all of 29st, unlocked the door with his own key and burst into the teenager’s room.
‘Take your clothes off,’ he ordered the orphaned youngster, who was sick with the flu and had taken to his bed in the hostel instead of going to work.
‘I’ve been told you’re ill and I’ve come to examine you,’ the man declared. Yet this was no doctor, but a councillor and businessman, a respected and well-known figure in the local community.
Just like Jimmy Savile – whom he counted as a friend – Cyril Smith used his public image as a shield while manipulating his way into positions of influence over vulnerable young people he then ruthlessly abused. Above, Smith (bottom left) with children outside the House of Commons
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Just like Jimmy Savile – whom he counted as a friend – Cyril Smith used his public image as a shield while manipulating his way into positions of influence over vulnerable young people he then ruthlessly abused. Above, Smith (bottom left) with children outside the House of Commons
‘He was a colossus, more than three times my size,’ the lad recalled years later, in graphic and disturbing testimony. ‘I remember his eyes watching me like a beast sizing up its prey. In the folds of fat around his neck I could see rivulets of sweat.
‘Shaking with fear, I did as I was told. He bent down and clasped me with huge hands like shovels.
Suddenly he grasped my private parts and began to squeeze. I screamed.
‘Violence flashed in his eyes. “Now, now, lad. I’ll have none of your petulance. This is for your own good. I’m checking to see if there’s anything wrong with you,” he said, as he forced his way between my thighs again.
‘I don’t know how long it lasted, but it felt like hours.
‘When he rose there was a faint smile on his features, which twisted into a sneer as he said: “There’s nothing wrong with you, lad. You’re swinging the lead, trying to bunk off work.”
‘ “No,” I stammered. “I’ve never had a day off in my life. I’m sick.”
‘He lunged towards me and in one brutal movement threw me over his knee. Thwack, thwack, thwack.
‘His monstrous hand rained down on my bottom, smacking me until I thought I’d pass out. I cried out in pain, but that only made him hit me harder.
‘When he finished I was trembling and whimpering as he held me down and told me: “It had to be done, lad.”
‘Above his heavy breathing I could smell his rancid body odour. With a wet sponge, he then began to stroke me, rough hands sliding over the welts he had made.
‘He was humming to himself, broken every now and then by strange squeals of pleasure. “There, there,” he kept whispering, his breath bearing down on my neck.
‘When it was over he let me slide to the floor, cleared his throat and adjusted his braces. He pulled a handkerchief out of his pocket and mopped his brow.
‘ “You’ll know better now,” he said, and made his way out.
‘The door clicked shut. For a while the only thought I entertained was death.’
When he calmed down, the shattered youngster pulled his wits together.
‘I dragged my clothes on, gathered my things into a duffle bag and ran. I spent the next night huddled in a bus shelter,’ he said.
‘That winter of 1963 was the coldest in 200 years. But that was nothing compared to the chill left in me for the rest of my life.’
The sadistic bully who administered this beating at Cambridge House, a boys’ hostel in the Lancashire mill town of Rochdale — and in the process tainted this bright young man’s life — was Cyril Smith.
Smith posed as a tireless worker for children – at one point he was governor of 29 local schools and set up a youth charity, Rochdale Childer – using it all as a cover to prowl from classroom to classroom and youth club to youth club
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Smith posed as a tireless worker for children – at one point he was governor of 29 local schools and set up a youth charity, Rochdale Childer – using it all as a cover to prowl from classroom to classroom and youth club to youth club
In 1963, he was already an enormously powerful local figure, a political godfather with fingers in many pies.
Known as Mr Rochdale, he later became the town’s mayor, then its Liberal MP, and for 20 years strutted the national stage.
At Westminster, on television and in the media, Smith was a big man in every sense.
He was one of the most popular faces in politics, using his oversized appearance, humour and in-your‑face northern bluffness to stand out in a world of grey, indistinguishable politicians.
But just like Jimmy Savile — whom he counted as a friend — Smith used his public image as a shield while manipulating his way into positions of influence over vulnerable young people he then ruthlessly abused.
And, like Savile, he deployed his professional success, powerful personality and highly placed contacts to ensure he was never held to account. It was only after his death in 2010 at the age of 82 that men like that victim from Cambridge House felt safe to speak out.
Yet Cyril Smith’s dark side has always been talked about in Rochdale — and the whispers echoed through British politics.
One of the most shocking elements of his story is how the truth was known to the police and in Westminster, yet concealed from the wider public, allowing a paedophile to hide in Parliament.
When I first arrived in Rochdale as its prospective Labour candidate in 2007, I, too, was taken in by him. It was 15 years since he’d stood down as MP but he continued to cast a spell over the town.
Case studies
I’d be woken at 2am by people asking for urgent help on a problem. When I pointed out it was the middle of the night, I’d be told: ‘Cyril would always help us whatever time it was.’
A working-class boy made good, he oozed supreme confidence and had a common touch that broke down barriers, shuffling around Rochdale market in carpet slippers to buy a bag of tripe.
Although he was officially ‘retired’ from politics, he still sat in an armchair on street corners, smiling like some saintly monk while people queued to hear his homilies. Councillors couldn’t get elected without his backing.
At first, I respected him for his homespun politics, his spit-and-sawdust grit and his passion. But in time, the scales fell from my eyes and I was confronted with absolute horror. Once you looked beyond the jolly clown playing for the camera, there was a sickening, dark heart.
‘He’d grope all the boys as he gave out awards’
I saw it in police files that had been hidden for years and I heard it in the desperate voices of grown men Cyril had abused as boys.
As soon as the first victim approached me, there was no turning back. Every email, every phone call, every meeting uncovered more about his double life.
And the more I found out, the more I came to realise that this wasn’t just about abuse, it was about power — and a cover-up that reached from Rochdale all the way to the very top of the Establishment.
Smith posed as a tireless worker for children — at one point he was governor of 29 local schools and set up a youth charity, Rochdale Childer — using it all as a cover to prowl from classroom to classroom and youth club to youth club.
His happiest hunting grounds were Cambridge House, a hostel for ‘working boys’ he helped set up with other politicians, and Knowl View, a residential school for children with learning difficulties, where he was a governor and had his own set of keys, coming and going at will.
To sit before the men he abused there and listen to them recount their ordeals is an experience no one can prepare for. There is anger, confusion and a deep sense of shame as they recall violence, spanking and groping that will never be erased from their memories.
His happiest hunting grounds were Cambridge House, a hostel for ‘working boys’ he helped set up with other politicians, and Knowl View (above), a residential school for children with learning difficulties, where he was a governor and had his own set of keys, coming and going at will
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His happiest hunting grounds were Cambridge House, a hostel for ‘working boys’ he helped set up with other politicians, and Knowl View (above), a residential school for children with learning difficulties, where he was a governor and had his own set of keys, coming and going at will
Smith would carry out bogus medical examinations as an excuse to fondle them, or beat them as supposed punishment for breaking the rules — then ‘comfort’ them afterwards.
Those who defied him were hit and smashed against walls. Boys’ teeth were knocked out and their bodies treated like playthings.
Other details of Cyril’s abuse filtered through to me almost casually. The cleaner in my office mentioned in passing how he once played for a football team as a teenager and Smith presented the awards every year.
‘He’d grope all the boys as he was presenting their medals,’ I was told. ‘We complained to the coach, but he said we’d have to put up with it because Cyril was the sponsor and paid for the do.’
I listened, horrified. It was presented as just another everyday story of Cyril abusing boys — as if everyone knew.
I began to wonder how many other public figures over the years had received calls and letters about Cyril and not acted on them. I imagine there were a few.
‘I cried out but it only made him hit me harder’

Certainly, when I started to ask questions after getting elected, a fellow Labour MP approached me and told me to leave Cyril alone. ‘Don’t attack him, steer clear of him,’ he said. ‘It’s not worth it.’
It wasn’t just the words that irritated me, it was the look that followed. It more or less said: ‘Play the game, this is how it works, and if you want to join our club then obey our rules.’
One of the most troubling whispers that repeatedly reached me was that Cyril had been protected by MI5. But, initially at least, no one was prepared to go on the record about it.
A former Labour MP I approached started to talk but went silent after a few sentences. ‘No good will come of this,’ he said nervously. ‘It’s best left.’ And then he shut the door on me.
A former police officer I tracked down to his pub in Cheshire went white when I mentioned Cyril’s name. ‘I can’t talk about that time,’ he said, and again the door was closed.
It was hard not to conclude that powerful forces were still at work to protect Smith’s name. But the voices of the victims could not be silenced, and in the autumn of 2012, in Parliament, I named Cyril as an abuser.
After I spoke publicly, more stories flooded in, and not just from victims.
Many — as I will describe in detail in the coming days of this series — were from police officers saying Smith’s crimes were widely known to them but their superiors refused to act.
I was told of officers who found child pornography in the boot of Smith’s car, only for a mysterious call from London to tell them not to charge him.
It’s now known that on three separate occasions files were passed by Lancashire Police to the Director of Public Prosecutions and the Crown Prosecution Service containing details of Smith’s abuse. Yet on each occasion no prosecution was pursued. It is as though Cyril was untouchable
+12
It’s now known that on three separate occasions files were passed by Lancashire Police to the Director of Public Prosecutions and the Crown Prosecution Service containing details of Smith’s abuse. Yet on each occasion no prosecution was pursued. It is as though Cyril was untouchable
I was told how Smith’s case was used during police training on child abuse, with one instructor admitting there had been 144 complaints against him. Mysteriously, when this became known to her superiors, the instructor was silenced and moved to another job.
I was told how Smith was repeatedly detained for acts of gross indecency in toilets in St James’s Park, London, only for orders to discontinue inquiries in each case.
And I was told how, when other inquiries were completed and revealed compelling and disturbing evidence that Smith was a serial paedophile, they were ignored.
It’s now known that on three separate occasions files were passed by Lancashire Police to the Director of Public Prosecutions and the Crown Prosecution Service containing details of Smith’s abuse. Yet on each occasion no prosecution was pursued. It is as though Cyril was untouchable.
On one now notorious occasion, files of evidence on Smith held by Special Branch were removed by MI5 officers from the safe at police headquarters in Preston and taken to London. They were never seen again. This was just one of several cover-ups which I will reveal in detail later in this series.
Some will no doubt argue that things have changed. The cover-up of Cyril’s abuse was a long time ago. The values of the Seventies are a lot different to the standards expected in public life today. People wouldn’t stand for that now. Awareness of child abuse has improved tenfold. No one would tolerate this kind of behaviour among colleagues, surely?
I would like to believe this view, but all the signs I’ve seen suggest it’s not the case.
Cyril wasn’t the only abuser in Rochdale, and he was influential enough to ensure that other abusers were allowed to hang on to his coat-tails and carry on, undetected by the authorities.
The problem that the town has to face up to, I believe, is that paedophile gangs have been operating there for years.
A leaked report to the local health authority, by a council HIV prevention officer named Phil Shepherd, warned that men from as far away as Sheffield travelled to Rochdale to abuse boys at Knowl View School.
I will tell the full, horrifying story behind this report, and how it became public, later in this series.
But it instantly invites the questions: Who was organising this? Who knew what was happening? Who chose to remain silent?
A number of police officers have told me that Cyril was just the tip of the iceberg and, unfortunately, I expect more stories of his abuse to emerge.
I think in time we’ll hear that there were more abusers in Parliament, more terrible cover-ups.
And it won’t be just one political party that’s guilty of harbouring abusers.

Additional reporting: Matthew Baker.
By MICHAEL SEAMARK and GUY ADAMS and DANIEL MARTIN
PUBLISHED: 21:01 GMT, 11 April 2014 | UPDATED: 20:18 GMT, 12 April 2014

Find this story at 12 April 2014

© Associated Newspapers Ltd

Lib Dem candidate Dominic Carman says concerns about late MP’s behaviour were rife within Liberal party in 1970s

Liberal party grandees including the former leader Jeremy Thorpe were aware of allegations that Cyril Smith was a serial abuser of boys throughout the 1970s but failed to launch a formal inquiry, according to a Liberal Democrat candidate who has passed his concerns on to the police.

Dominic Carman, who has represented Nick Clegg’s party in two parliamentary elections, claimed that his father, the barrister George Carman, learned that concerns about the late MP for Rochdale’s behaviour were rife within the party while successfully defending Thorpe in a trial for conspiracy to murder in 1979.

Father and son discussed Liberal concerns about Smith at length in May 1979 as Thorpe prepared to go to trial, Carman said, amid concerns that their disclosure could harm the former leader’s defence.

The claims, which have been passed on to Greater Manchester police, will add to widening concern at institutional responses to allegations of abuse against the MP, who died in 2010. Officers believe that Smith was a prolific abuser of boys and should have been charged with crimes more than 40 years ago, it emerged in November.

They will also increase pressure upon the Liberal Democrats as they are forced to confront allegations of sexual harassment against Lord Rennard, one of the party’s most senior figures. Rennard denies any wrongdoing. There is no suggestion he was aware of the claims about Smith.

The party announced an inquiry last week into how it has handled past complaints of sexual impropriety. Tim Farron, the party’s president, has admitted that the party has “screwed up” inquiries into claims that Rennard groped or propositioned female activists.

Simon Danczuk, the Labour MP who first raised concerns about Smith’s activities in parliament in November, said that there is a pattern whenever allegations of sexual abuse emerge inside the Liberal Democrats. “They bury their heads in the sand and claim to know nothing. For the sake of Rochdale victims, Clegg has to stop stonewalling and now come clean on what his party knew about the sexual abuse carried out by Cyril Smith,” he said.

The Thorpe trial gripped the nation in 1979, amid claims of illicit affairs, greed, murder and revenge.

Thorpe, who led the Liberal party for nine years, was accused of plotting the murder of his alleged former lover, Norman Scott, for threatening to uncover their alleged affair. It was claimed that Thorpe and others had hired a hitman to kill Scott, but that the hitman had shot dead Scott’s dog, Rinka, instead.

George Carman’s reputation as a fearsome counsel was cemented after he cross-examined Scott. His son, Dominic Carman, who stood for the Lib Dems in 2010 in Barking and again at the Barnsley byelection in 2011, said that he discussed the Smith allegations with his father in May 1979 as the trial was about to begin.

These discussions were, he claimed, prompted by the publication in the week before the trial of allegations that Smith had abused boys in a children’s hostel printed in the Rochdale Alternative Press, a small circulation local magazine.

Thorpe’s legal team was concerned that the magazine’s report might be followed up by a national newspaper and have a negative impact upon the trial, Carman said.

“My father was told by Thorpe that senior Liberals knew of the serious nature of the allegations against Smith and that they dated back many years. I approached the police in December with information,” Carman said. A spokesman for Greater Manchester police confirmed that an officer has spoken to Carman.

Thorpe was cleared of plotting to murder Scott but failed to regain his political career.

Another source who also claimed to have spoken to George Carman during the trial said that the barrister was concerned about the possible impact of further revelations in the Thorpe trial.

“The reason that it was a genuine fear was because there were so many allegations against Smith involving boys that one assumed there was no smoke without fire,” the source said.

Smith was named by Danczuk in November on the floor of the House of Commons as a serial abuser of boys. Victims of Smith claim he abused many young boys in a hostel and a school in the late 1960s and continued to abuse others into the 1980s.

Police first investigated the claims in 1968, but the Crown Prosecution Service concluded there was no case to answer.

In November, the Crown Prosecution Service re-examined their files but this time said that, if the same evidence was unearthed today, they would have prosecuted Smith.

Alan Collins, a solicitor who represents 11 men who claim they were abused by Smith, urged the Lib Dems to come clean about what it knew about Smith’s abuse of young boys.

“The fact is a group of sexual abuse victims were cheated of justice and the smell of cover-up hangs in the air and needs one way or the other to be dispersed,” he said.

Thorpe, 83, who has Parkinson’s disease, has been given a list of detailed questions asking what he knew of allegations surrounding Smith, but has not responded.

Alistair Carmichael, the Liberal Democrat chief whip, conducted an internal inquiry into what MPs knew about Smith’s abuse of young boys in December, and concluded that there was no case to answer.

A spokesman for the Liberal Democrats said they would help police in any future inquiries into Smith: “We are a completely different party to the Liberals on 1979 – a different structure and different rules.”

Rajeev Syal
theguardian.com, Tuesday 26 February 2013 17.20 GMT

Find this story at 26 February 2013

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