News you may have missed #883

Oleg KaluginBy IAN ALLEN | intelNews.org
►►Indonesia, Australia renew intelligence ties. Australia and Indonesia have signed a pledge not to use intelligence to harm each other, signaling a resumption in cooperation, which had been suspended after last year’s spy scandal. Australian Foreign Minister Julie Bishop and her Indonesian counterpart, Marty Natalegawa, signed the “joint understanding of a code of conduct” in Nusa Dua, Bali, on Thursday.
►►Ex-KGB general says Russia has already won in Ukraine. Russia has already won “the real victory”​ in Ukraine, according to former KGB general Oleg Kalugin, who is now living in the United States. The “southeast of Ukraine, that’s part of the general battle between the Russians and Ukrainians, but it’s not as crucial as the real victory and pride of Russia —the Crimea, I mean”, he said on Thursday. Kalugin reiterated that he does not believe Russian president Vladimir Putin wants annex another region of the country. “It’s not in the interest of Putin”, Kalugin said. “His position as of today is fairly strong in the country, in his own country, so why put it at risk by moving further?”
►►China says Canadian couple were spies disguised as ordinary citizens. Kevin and Julia Garratt have been accused of stealing Chinese military and national defense research secrets. They were detained on August 4, 2014, but not formally arrested, and China has offered little information on what they are accused of doing. The couple ran a coffee shop near the border with North Korea, worked with Christian groups to bring humanitarian aid into North Korea, and worked to train North Korean Christians inside China. Their detention by China’s State Security Bureau has been seen by Canadian authorities as reprisal for the arrest of Su Bin, a Chinese immigrant to Canada suspected of masterminding the electronic theft of US fighter jet secrets.

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Australia, Indonesia to end rift by signing joint spy agreement

 Abbott and YudhoyonoBy IAN ALLEN | intelNews.org
Australia and Indonesia are to end months of diplomatic friction by signing a joint agreement aimed at curbing their intelligence activities against each other. IntelNews readers will recall that Indonesia withdrew its ambassador from Canberra and terminated all military and intelligence cooperation with Australia late last year, after it emerged that Australian spies had targeted the communications of Indonesian President Susilo Bambang Yudhoyono and other senior Indonesian officials, while they were attending the 2009 G20 conference in London. Relations between the two countries worsened considerably in February of this year, when documents leaked by American defector Edward Snowden revealed that Australian intelligence spied on American law firm representing the government of Indonesia in a trade dispute with Washington. The documents, from February 2003, showed that the Australian Signals Directorate (ASD) purposely targeted the law firm because it represented the commercial interests of the Indonesian state. To make things worse, the leaked information showed that the ASD, which is responsible for signals intelligence and information security, offered to share the intelligence collected from the operation with its American counterpart, the National Security Agency. Following the revelation, the Australian and Indonesian governments were reportedly not on talking terms. But it has now emerged that Australia and Indonesia are to sign a mutually binding agreement titled “Joint Understanding of a Code of Conduct”, which, among other things, will prohibit Australia from using its intelligence agencies to harm Indonesian national interests. Australian Minister of Foreign Affairs Julie Bishop told Australia’s ABC network that the agreement would “make it quite clear” that “Australia would not use its [...] intelligence resources to the detriment of [...] Indonesia”. Read more of this post

News you may have missed #879

Mossad sealBy IAN ALLEN | intelNews.org
►►Israeli spy budget close to $2 billion. According to reports in the Israeli media, the 2014 budget for Israel’s secret services is 6.88 billion shekels, which amounts to US$1.97 billion). This figure represents an approximate increase of 4 percent compared to last year. The funds cover the operations of the Shin Bet, Israel’s domestic security service, and the Mossad, which is the country’s external covert-action agency.
►►Australia and France sign intelligence accord. Australia has struck a second intelligence-sharing agreement in less than a week, this time with France, as fears rise about the Syrian civil war becoming a hub for home-grown terrorism. The two countries have agreed, among other things, to share intelligence on their respective citizens who have gone to Syria to fight in that country’s civil war. A week earlier, Canberra had signed a similar intelligence-sharing agreement with the government of Indonesia.
►►Nazi spy could have changed course of D-Day. Days before the Normandy landings, the Lisbon-based Nazi spy Paul Fidrmuc got wind of the final details of Operation Overlord and sent an urgent message to Berlin. The Allies were not planning to land in Calais, as the Nazis thought and where they had massed 200,000 soldiers. Instead, he wrote, “the preferred plan is around La Manche”. But his dispatch was ignored by his Berlin handlers.

IRA ‘tried to kill Queen’s husband’ during Australia visit

Prince Philip and Queen Elizabeth in 1973By JOSEPH FITSANAKIS | intelNews.org
The Provisional Irish Republican Army tried to assassinate Prince Philip, the Duke of Edinburgh and husband of Queen Elizabeth II, during an official Royal visit to Australia in the early 1970s, according to a new book. The claim is detailed in the book Shadow of a Spy, written by Warner Russell, a veteran Australian reporter and retired military intelligence officer. The alleged assassination attempt was uncovered in Sydney on March 15, 1973, during the Prince’s two-day visit to Australia. While there, the Queen’s husband attended a conservation meeting and led an official opening ceremony of a Royal Australian Air Force war memorial in capital city Canberra. According to Russell, two “crude explosive devices” were discovered in Sydney at locations that had been scheduled to be visited by the British Royal entourage. The first device was detected in a trash can in Dowling Street, in Sydney’s downtown Potts Point neighborhood. The second device was found inside a luggage locker at Sydney’s Central Station, a few miles away from the location of the first bomb. The book claims that the two other “suspicious packages” were found, one in a local government building located across the street from an officer’s club that the Prince was due to visit, and another in a trash can at Taylor Square, less than a mile from Central Station. Eventually, the two “suspicious packages” were determined to be “decoys”, says Russell. But the other two devices contained explosive material and were defused by an Australian Army bomb disposal team before being secretly taken to a forensic laboratory for examination. Russell claims that the bombs were defused just minutes before Prince Philip’s group arrived at the two Sydney locations, and Australian authorities were so nervous that they ordered the Prince’s motorcycle escort and protection team to “take evasive action” as they approached Dowling Street. Read more of this post

Australia spied on US law firm representing Indonesia in trade talks

Australian Signals DirectorateBy JOSEPH FITSANAKIS | intelNews.org
Australian intelligence spied on an American law firm representing the government of Indonesia in a trade dispute with the United States, according to leaked documents. The documents, from February 2003, show that the Australian Signals Directorate (ASD) specifically targeted the law firm because it represented the commercial interests of the Indonesian state. The ASD is Australia’s intelligence organization responsible for signals intelligence and information security. The leaked documents also show that that the Australian spy agency offered to share the intelligence collected from the operation with its American counterpart, the National Security Agency (NSA). The New York Times, which published the leaked information, said the operation appeared to have been aimed strictly at subverting the Indonesian government’s international commercial interests and had nothing to do with national security. The paper said it acquired the documents from Edward Snowden, an American intelligence defector currently living in Russia, who used to work for the NSA and the Central Intelligence Agency. The leaked papers do not specify the precise trade negotiations between Washington and Jakarta, which appear to have been targeted by the ASD. Nor do they identify the American law firm spied on by the Australians. But the paper suggested that Mayer Brown, one of the world’s largest law firms, with offices in over 22 cities around the globe, was acting as the Indonesian government’s legal consultant at the time the leaked documents were drafted. A memorandum included in the leaked documents notes that the ASD had “been able to continue to cover the [trade] talks [between the US and Indonesia], providing highly useful intelligence for interested US customers”. Read more of this post

News you may have missed #867 (Syrian uprising edition)

Regional map of SyriaBy IAN ALLEN | intelNews.org
►►Al-Qaeda breaks link with Syrian militant group. Al-Qaeda’s general command said on Monday it had no links with the Islamic State in Iraq and the Levant (ISIL), in an apparent attempt to reassert its authority over fragmented Islamist fighters in Syria’s civil war. The move is likely to bolster a rival Islamist group, the al-Nusra Front, as al Qaeda’s official proxy in Syria. The switch is seen as an attempt to redirect the Islamist effort towards unseating President Bashar al-Assad rather than waste resources in fighting other rebels.
►►Is Israel secretly working to target al-Qaeda in Syria? Reports already indicate that Israel is providing humanitarian aid for Syrians, but do these contacts also include intelligence and military cooperation against radical groups linked with al-Qaeda? And, if so, does this mean that Israel is assisting troops loyal to Syrian President Bashar al-Assad?
►►Australians ‘flocking to Syrian front line’. Some experts say there are more Australians journeying to Syria to participate in the ongoing conflict than any other Western nation. The number of Australians killed in Syria’s civil war is at least 15 —double the number previously reported. The claim comes from a prominent member of the country’s Syrian community. He says there is no shortage of Australian support for the Syrian rebels —and that that support is being grossly under-reported.

Australia tries to stop ex-spy from testifying in international court

Australia and East TimorBy JOSEPH FITSANAKIS | intelNews.org
The government of Australia has confiscated the passport of a former intelligence officer who was preparing to testify at an international court that Canberra engaged in illegal economic espionage. The International Court of Justice in The Hague, Netherlands, is preparing to hear a case brought against Australia by the government of East Timor. The small island nation accuses Australia of bugging the offices of key Timorese officials in an attempt to acquire inside information on a crucial energy deal. East Timor claims that a group of Australian Secret Intelligence Service (ASIS) officers disguised themselves as a refurbishing crew and planted numerous electronic surveillance devices in an East Timorese government office. The information collected from the listening devices allegedly allowed Australia to gain an upper hand during negotiations that led to the Certain Maritime Arrangements in the Timor Sea (CMATS) treaty. The treaty, signed in 2004, allows the two countries to share the revenue derived from the exploitation of the Greater Sunrise oil and gas field, sections of which are claimed by both Australia and East Timor. But the Timorese side now claims that Canberra gained an unfair advantage in the CMATS negotiations through its bugging operation, and is asking for the treaty to be terminated. Sometime last week, Australian authorities found out that the East Timorese side had secured the cooperation of an ASIS whistleblower, who was prepared to testify at The Hague about the details of the bugging operation. The unnamed whistleblower, who is believed to be a former director of technical operations at ASIS, was prepared to tell the court that the operation was both “immoral and wrong”, because it was designed to benefit the interests of large energy conglomerates and had nothing to do with Australian national security. On Tuesday, officers from the Australian Security Intelligence Organisation (ASIO), which is the country’s domestic intelligence agency, raided the offices of Bernard Collaery, who is acting as East Timor’s lawyer in the case. The raiders took away legal documents that disclose the identity of the ASIS whistleblower. Shortly afterwards the former ASIS official was questioned by Australian authorities, who then proceeded to confiscate his passport, so as to prevent him from traveling to the Netherlands. Read more of this post

News you may have missed #857 (hacking edition)

Mossad sealBy IAN ALLEN | intelNews.org
►►UK spies hacked Belgian phone company using fake LinkedIn page. British spies hacked into the routers and networks of a Belgian telecommunications company Belgacom by tricking its telecom engineers into clicking on malicious LinkedIn and Slashdot pages, according to documents released by NSA whistleblower Edward Snowden. The primary aim, reports the German newsmagazine Der Spiegel, which obtained the documents, was to compromise the GRX router system that BICS controlled, in order to intercept mobile phone traffic that got transmitted by the router.
►►Indonesian hackers behind attack on Australian spy service website. Indonesian hackers are believed to have brought down the website of the Australian Secret Intelligence Service, Australia’s leading spy agency. The page was not working on Monday afternoon after hackers launched a “denial of service” attack. A “404 not found” message typically appears when a website crashes under a “denial of service” attack. The cyber attack is reportedly a response to revelations that Australia had been spying on its closest neighbor through its Jakarta embassy.
►►Hamas blasts alleged Mossad website. Hamas officials released a warning about a website called Holol (“solutions”), claiming it is a ruse set up by Israel’s Mossad intelligence agency to recruit Gazans as informants. The website’s “Employment” page states, “due to our connections with the Israeli Civil Administration, we can help you bypass the bureaucratic tape and procedural processes which prevent you from leaving Gaza”. The site also offers Israeli medical assistance, “due to connections with the Ministry of Health and the Israeli Civil Administration”. Palestinians interested in contacting the website’s officials are asked to provide their full name, telephone number, email, topic of inquiry, and an explanation of why they are asking for help. Last month, Lebanese group Hezbollah accused the Mossad of being behind a website seeking information on Hezbollah’s intelligence wing.

News you may have missed #856

Communications Security Establishment CanadaBy IAN ALLEN | intelNews.org
►►Expert says Australia spies for the United States. Intelligence expert Professor Des Ball claims Australia is playing a role in America’s intelligence networks by monitoring vast swathes of the Asia Pacific region and feeding information to the US. Dr. Ball says the Australian Signals Directorate –formerly known as the Defence Signals Directorate– is sharing information with the National Security Agency (NSA). He adds that Australia has four key facilities that are part of the XKeyscore program, the NSA’s controversial computer system that searches and analyses vast amounts of internet data.
►►Canada silent on allegations of spying. A spokeswoman for Communications Security Establishment Canada has refused to comment on allegations that the agency mounts foreign operations through Canada’s embassies abroad. German magazine Der Spiegel says Canada is using diplomatic facilities to support surveillance operations in league with key allies the United States, Britain and Australia. The German newsmagazine indicates the Canadian spy agency hosts “Stateroom” sites —a term for covert signals-intelligence gathering bases hidden in consulates and embassies.
►►Russia denies spying on G20 leaders during summit. Russia has denied reports it attempted to spy on foreign powers meeting at the G20 summit in St Petersburg earlier this year, denouncing the allegations as a “clear attempt to divert attention” from revelations concerning the United States’ National Security Agency. Two Italian newspapers claimed on Tuesday that USB flash drives and cables to charge mobile phones that were given to delegates —including heads of state— at the September meeting were equipped with technology to retrieve data from computers and telephones.

KGB ‘ran two Australian politicians as agents’ in 1970s: document

Geronty Lazovik (left) in 1971By JOSEPH FITSANAKIS | intelNews.org
Soviet intelligence recruited and ran at least two Australian elected politicians as agents for the USSR in the 1970s, according to a confidential account authored by an Australian counterintelligence officer. The report’s author is allegedly an unnamed former employee of the Australian Security Intelligence Organisation (ASIO), which is tasked with counterespionage. Australia’s Fairfax Media, which claimed yesterday to have accessed the report, described it as “an unusually candid document”. It allegedly describes Soviet intelligence activities on Australian soil during the last two decades of the Cold War and names known Soviet intelligence officers operating in Australia at the time. Among those named is Vladimir Yevgenyevich Tulayev, described in the confidential report as “a hard-eyed, well-dressed thug” who was “aggressively involved in intelligence operations in Australia”. The document also names Geronty Lazovik, considered by AFIO as a “definite agent runner”. Australian counterintelligence described Lazovik as a far more refined operative than Tulayev and kept tabs on him as he developed and cultivated “a wide range of contacts” across Australia’s Federal Parliament. The report suggest that Australian Labor Party politicians, aides and lobbyists were among Lazovik’s “contacts” in Australia, though it does not explicitly name them as agents of the Soviet KGB. Arguably the most important allegation made in the report is that another KGB operative in Australia, Vladimir Aleksandrovich Aleksyev, was able to recruit and run “two Australian politicians as agents” in the late 1960s and early 1970s. The document states that Aleksyev was able to handle the two alleged recruits “using tradecraft of a fairly high order”, suggesting that he was perhaps one of the KGB’s most successful known case officers in Australia. The confidential report alleges that the ASIO leadership approached the Australian government with information about the operations of the KGB officers. Read more of this post

Australian civil servant accused of spying denied access to evidence

Embassy of South Korea in AustraliaBy IAN ALLEN | intelNews.org |
Australia’s Federal Court has rejected a bid by a senior civil servant to view the evidence the government is using to accuse him of espionage. Until September of 2011, Dr. Yeon Kim was a career civil servant with the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). His specialization in international trade policy required a security clearance, which Kim had possessed since 2001. But in 2011, he was sacked and had his security clearance revoked for allegedly holding clandestine meetings with officers of South Korea’s National Intelligence Service (NIS). The Australian government accuses Kim of meeting repeatedly with Hoo-Young Park, an employee of the South Korean embassy in Canberra, who had been declared to the Australian government as an NIS liaison officer. According to court documents, three other NIS officers serving under diplomatic cover in Australia, Bum-Yeon Lee, Sa-Yong Hong, and a third man named Kim, were involved in collecting intelligence on Australian trade secrets. The Australian Security Intelligence Organisation (ASIO), which detained Kim, said that he willingly participated in the “foreign interference” operation by the NIS. For several months now, Kim has been contesting the Australian government’s legal case against him in the Federal Court. His legal team recently requested that the Court annul two certificates issued by the Australian attorney general, designed to bar the defense from accessing evidence against Kim. The certificates were originally submitted by government prosecutors during an earlier Administrative Appeals Tribunal hearing. But the Court declined the request, saying the defense waited too long to challenge the certificates. In issuing the ruling, Justice Lindsay Foster said Kim’s legal team should have requested that the certificates be declined during the original hearing. The judge censured Kim’s defense lawyers for “stand[ing] by and watch[ing] while the certificates were [originally] deployed”, adding that it would undermine the integrity of the legal process to allow the certificates to be challenged at this late stage. Read more of this post

News you may have missed #848

US consulate in Benghazi, LibyaBy IAN ALLEN | intelNews.org |
►►UK officials saw ‘communist spies’ in Japan in 1983. British officials believed in the early 1980s that Japanese institutions had been “slightly” penetrated by communist intelligence services, according to documents declassified last week at the National Archives in London. The documents, from 1983, assert that there were approximately 220 communist intelligence officers working in Japan: 100 for the Soviet Union, 60 for China and 60 for other communist countries.
►►‘Dozens of CIA operatives on the ground’ during Benghazi attack. CNN claims that “dozens of people working for the CIA” were on the ground the night of the attack on the US consulate in Benghazi, Libya, which killed four Americans, including Ambassador Christopher Stevens. The news station adds that, according to one source, the CIA is involved in “an unprecedented attempt to keep [its] Benghazi secrets from ever leaking out”.
►►Australians call for national debate on privatization of intelligence. Dr Troy Whitford, Associate Investigator with the Australian Research Council’s Centre of Excellence in Policing and Security, and lecturer at Charles Sturt University, has called for “a national debate on the extent, cost and consequences of Australia’s security and intelligence outsourcing”. The call was apparently prompted by news that 51% of the intelligence gathering in the US is now carried out by non-government contractors.

Australia fears Asia backlash over PRISM surveillance revelations

David IrvineBy JOSEPH FITSANAKIS | intelNews.org |
The government of Australia is concerned that American whistleblower Edward Snowden may leak classified information that could damage Australia’s relations with its Asian neighbors, including China and Malaysia. Early this month, Snowden, a former technical assistant for the United States Central Intelligence Agency (CIA), disclosed the existence of PRISM, a clandestine electronic surveillance program operated by the US National Security Agency (NSA). Information provided by Snowden to British newspaper The Guardian suggests that Washington routinely shares PRISM intelligence with Canada, New Zealand, the United Kingdom and Australia. These four countries, along with the United States, are signatories to the so-called UKUSA agreement, a multilateral accord for cooperation in signals intelligence (SIGINT) collection, which was established secretly in 1946. Australian media reported on Wednesday that the Australian Parliament’s Joint Committee on Intelligence and Security had been briefed by senior intelligence officials on Australia’s role in PRISM. The Sydney Morning Herald said that David Irvine, Director of the Australian Security Intelligence Organisation, and Ian McKenzie, who heads Australia’s Defence Signals Directorate, were among those who briefed the parliamentary Committee. Its members were reportedly told that the disclosures about PRISM were likely to damage Canberra’s relations with several Asian countries, in ways that are difficult to predict. One unidentified Australian intelligence official told The Herald that Snowden had “very wide access” to classified information held by the NSA, and that some of it probably includes “much detail of communications intelligence cooperation between the US and Australia”. One source went as far as to say that Snowden’s disclosures have already “damaged [...] Australia’s intelligence capabilities”. Read more of this post

Chinese hackers ‘stole blueprints’ of Australian spy agency’s new HQ

ASIO's new headquartersBy JOSEPH FITSANAKIS | intelNews.org |
Chinese government hackers allegedly stole the master blueprints and other highly classified technical information relating to the new headquarters of the Australian Security Intelligence Organisation (ASIO). The state-of-the-art building, which is located at the shore of Lake Burley Griffin in Australian capital Canberra, has so far cost taxpayers in excess of AUD $631 million (US $608 million). Although it remains under construction, the new headquarters is said to feature the most sophisticated security features of any government building in Canberra. But a report aired on May 28 by Australian television’s Four Corners investigative program, alleged that a Chinese government agency managed to steal the building’s blueprints. The program claimed that the highly classified blueprints were stolen when hackers mounted a sophisticated cyberattack on a private-sector contractor involved in constructing the ASIO’s new headquarters. Four Corners suggested that the cyberattack, which was “traced to a server in China”, also compromised the building’s communications diagram, server locations and physical security systems. The revelation will undoubtedly add to the stream of public criticism about the project, which has been severely plagued by budget increases and construction delays. As recently as 2010, the government was insisting that the project was “progressing on time and on budget, with completion scheduled for mid-2012”. Today, however, the building’s budget has gone over by AUD $171 million and the building is expected to open its doors no earlier than the fall of 2013, with some commentators suggesting that it could be 2014 before ASIO’s personnel are able to start moving in. Read more of this post

Ex-Mossad official denies Zygier compromised intelligence operation

Ben ZygierBy JOSEPH FITSANAKIS | intelNews.org |
A former Mossad official has dismissed as “nonsense” suggestions that an Australian-born Israeli spy, who killed himself in 2010, had been jailed for inadvertently compromising an Israeli secret mission. Ben Zygier was an officer in Israel’s covert-action agency Mossad for several years before he was placed in solitary confinement following his arrest in Israel, in February of 2010. Known to the outside world only as ‘Prisoner X’, he allegedly killed himself in his cell a few months later. In March, German newsmagazine Der Spiegel alleged that Zygier was arrested by Israeli intelligence after contacting a Lebanese Hezbollah operative without Tel Aviv’s authorization. The Australian-born spy was allegedly trying to recruit the operative on his own initiative and without permission from his superiors. In order to prove his Mossad credentials, Zygier is said to have given the man several names of Israel’s double agents operating inside Hezbollah. But the Lebanese recruit surrendered Zygier’s information to Hezbollah, which promptly arrested many of Israel’s informants inside the organization. Those arrested included Ziad al-Homsi, who at the time was believed to be one of the Mossad’s most lucrative assets inside the Lebanese militant group. On Tuesday, the Australian Broadcasting Corporation said that, at the time of his arrest in Lebanon, al-Homsi was preparing to assist the Mossad in recovering the bodies of three Israeli soldiers that had been killed in Syria during the 1982 Lebanon War. Read more of this post

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