Maltese far-right party had links to CIA, British documents suggest

Josie MuscatA Maltese ultra-nationalist group believed to be behind a string of bombings in the 1980s was believed by British intelligence to have links to the United States Central Intelligence Agency (CIA), according to recently declassified documents. The Front Freedom Fighters (FFF) was a staunchly anticommunist group whose members violently objected to what they saw as Malta’s overly close contacts with the Communist Bloc. During the 16-year rule of the Maltese Labour Party, which began in 1971, the Mediterranean island maintained close relations with countries during such as Libya and North Korea. The Maltese Nationalist Party, which formed the main opposition to Labour, was highly critical of these contacts, but failed to win three consecutive electoral contests and was thus unable to influence the country’s foreign policy in any significant way.

The FFF emerged in the early 1980s from within the ranks of the Nationalist Party. It consisted of younger activists who favored a violent response to the rule of the Labour Party. The group was led by Josie Muscat, a dynamic anticommunist campaigner and longtime Nationalist Party Member of Parliament, who gathered around him some of the more extreme rightwing elements in the Nationalist Party. A string of bombings and threats directed at Labour Party facilities on the island was attributed to the FFF by the popular press, though Muscat himself consistently denied such accusations. Many believed that the FFF was actively preparing to launch an armed coup d’etat.

Eventually, the leadership of the Nationalist Party, which saw itself as falling within the mainstream of the European conservative tradition, began distancing itself from the FFF’s rhetoric and actions. In July of 1983, the party expelled FFF leaders from its ranks and forbade its members from associating with FFF-linked groups. Few Nationalist Party members followed Muscat, and his movement eventually suffered what some observers described “a natural death”.

However, new documents released this month by the National Archives in Britain show that the British Foreign Office believed that the FFF was being funded by the CIA. A Foreign Office Report from the early 1980s states that the group was probably behind several bomb explosions targeting Labour Party activists, as well as moderate Nationalist Party members. The report describes the FFF as “neo-Fascist in character” that prioritized crude violence as its main tactic. It goes on to say that the group consisted of about 500 determined members, but that its violent core was much smaller. The Foreign Office report also suggests that Muscat may have traveled abroad to meet CIA officers, as well as to network with other anticommunist organizations throughout Europe.

Asked to give his reaction to the British government documents, Muscat told The Times of Malta that he “hadn’t had such a good laugh in years”. The now retired politician denied having any links to the CIA and said that the FFF’s activities had been “mostly limited to political debating and had never even come close to any form of violence”.

Author: Ian Allen | Date: 25 August 2015 | Permalink

Memos confirm secret NSA deal with leading cryptography vendor

William FriedmanIn 2007 I wrote in my “National Security Agency: The Historiography of Concealment” that America’s leading signals intelligence agency had made a secret deal with Crypto AG, a Swiss-based manufacturer of cryptographical equipment. The agreement, which lasted for much of the Cold War, allowed the NSA to read the classified messages of dozens of nations that purchased encoding equipment from Crypto AG. As I expected, the claim drew criticism from individuals connected with Crypto AG, including company scientists, who argued that the Swiss manufacturer would never have agreed to a deal that undermined its professional reputation as a trusted and neutral vendor of cryptological devices. Now, however, the BBC has revealed two recently declassified NSA memos that provide concrete proof of the deal.

My 2007 claim was based on a string of well documented allegations that surfaced in the early 1980s. While conducting research for his seminal book The Puzzle Palace, historian James Bamford came across references to Project BORIS, which involved a pact between the NSA and the Swiss company. To be precise, the deal appeared to have been struck between the Swiss inventor and Crypto AG founder Boris Hagelin and William F. Friedman, an American cryptologist who led the Armed Forces Security Agency, a forerunner of the NSA. The two men were united by a deep personal friendship, which was forged during World War II by their mutual hatred of Nazism.

Bamford’s claim was echoed in 1996 by Scott Shane and Tom Bowman, reporters for The Baltimore Sun. In a six-part investigative series about the NSA, the two journalists wrote that Friedman visited Hagelin during a trip to Switzerland in 1955 and asked for his help so that American could dominate its Cold War rivals. According to Shane and Bowman, Hagelin agreed and built a type of cryptological backdoor in Crypto AG’s devices, which allowed the NSA to read millions of messages for many decades. The company, of course, reacted furiously, saying that claims of a secret deal were “pure invention”.

On Thursday, however, BBC security correspondent Gordon Corera confirmed that a BBC investigation of 55,000 pages of documents, which were declassified by the NSA in April, found proof of the secret agreement. The declassified material, said Corera, contains two versions of the same NSA memorandum, as well as an earlier draft, which refer to a “gentleman’s agreement” between Friedman and Hagelin. Under the agreement, Crypto AG would inform the NSA about periodical changes to the technical specifications of its encoding machines. The company would also provide the American spy agency with detailed lists showing the precise models purchased by various national governments around the world. Furthermore, Crypto AG agreed not to sell the more advanced, customizable models of its equipment to countries viewed by Washington as directly adversarial. This, says the BBC, amounted to Crypto AG deceiving some of its customers, by offering them “watered-down versions” of its encoding devices.

Corera notes that there is no evidence in the memos that Crypto AG built any kind of back door in its devices for use by the NSA. Instead, by providing the American agency with detailed operational knowledge of the devices, it enabled American codebreakers to reduce the time and effort needed to break encoded messages intercepted by the NSA.

There are a couple of minor errors in Corera’s article. For instance, the “father of American code-breaking” is not Friedman, as he claims, but Herbert Yardley, who led the so-called Black Chamber (also known as the Cipher Bureau) in 1919, long before Friedman was in the picture. Additionally, he fails to mention Bowman’s contribution to Shane’s Baltimore Sun article, which was published in 1996, not 1995, as he writes. These minor errors aside, however, the BBC discovery is absolutely crucial for our understanding of cryptological history in the Cold War.

Author: Joseph Fitsanakis | Date: 31 July 2015 | Permalink

Key testimony from Rosenberg spy case released after 64 years

Julius and Ethel RosenbergThe final piece of sealed testimony in one of the most important espionage cases of the Cold War has been released, 64 years after it was given. The case led to the execution in 1953 of Julius and Ethel Rosenberg, an American couple who were convicted of spying for the Soviet Union. The Rosenbergs were arrested in 1950 for being members of a larger Soviet-handled spy ring, which included Ethel’s brother, David Greenglass. Greenglass agreed to testify for the US government in order to save his life, as well as the life of his wife, Ruth, who was also involved in the spy ring. He subsequently fingered Julius Rosenberg as a courier and recruiter for the Soviets, and Ethel as the person who retyped the content of classified documents before they were surrendered to their handlers. That piece of testimony from Greenglass the primary evidence used to convict and execute the Rosenbergs.

However, although historians are confident that Julius Rosenberg was indeed an active member of the Soviet spy ring, there are doubts about Ethel. Many suggest that her involvement with her husband’s espionage activities was fragmentary at best, and that she refused to cooperate with the Federal Bureau of Investigation in an ill-judged attempt to protect her husband. The argument goes that Ethel was put to death as a warning to Moscow, as well as to intimidate other American spies, rather than on the basis of actual evidence of her involvement in espionage. Many years after the Rosenbergs’ execution, Greenglass claimed he had lied about Ethel’s role in the spy affair in order to protect his wife, who was the actual typist of the espionage ring.

The debate over Ethel Rosenberg’s fate was rekindled by US District Judge Alvin Hellerstein’s decision in May of this year to unseal Greenglass’ testimony. The documents could not be made public while Greenglass was alive, because he objected to their release. But he died last year in a nursing home in New York, so Judge Hellerstein said his testimony could now legally be made available to the public as a “critical piece of an important moment in our nation’s history”.

Greenglass’ grand jury testimony, made under oath in 1950, six months before he implicated his sister in nuclear espionage for the Soviets, was posted online on Wednesday by George Washington University’s National Security Archive. Speaking at a press conference about the release, several experts said the new information directly contradicts Greenglass’ later testimony in which he accused his sister of being a spy. In the press conference of his grand jury testimony, Greenglass emphatically denies that Ethel had a role in the atom spy ring. When asked whether she was involved in espionage, Greenglass responds: “my sister has never spoken to me about this subject”. Later on he recounts how Julius tried to convince him to prolong his US Army service in order to continue to have access to classified information. When asked whether Ethel also tried to convince him to continue to spy for the Soviets, he responds: “I said before, and say it again, honestly, this is a fact: I never spoke to my sister about this at all”.

National Security Archive Director Tom Blanton said at the press conference that the evidence made it clear that Julius Rosenberg led an active spy ring; but Ethel was not an active spy, he said, even though witting.

Author: Joseph Fitsanakis | Date: 17 July 2015 | Permalink: http://intelnews.org/2015/07/17/01-1737/

Cold War files show secret war between CIA and KGB in Canada

Natalie (Natalka) BundzaA set of declassified intelligence documents from the 1950s and 1960s offer a glimpse into the secret war fought in Canada between American and Soviet spy agencies at the height of the Cold War. The documents were authored by the United States Central Intelligence Agency and declassified following a Freedom of Information Act request filed on behalf of the Canadian newspaper The Toronto Star. According to the paper, they show that Toronto was a major hub of a prolonged espionage conflict fought between the CIA and the Soviet KGB.

Much of the espionage activity by the two spy agencies concentrated on Toronto’s sizable Eastern European expatriate community, especially on immigrants with Ukrainian and Polish roots. In one document dating from 1959, a CIA officer details the profiles of 18 Canadian citizens, most of them Toronto residents, who were suspected by Langley to be working for the KGB. Most of them were believed to be non-official-cover operatives, or NOCs, as they are known in the US Intelligence Community. The term typically refers to high-level principal agents or officers of an intelligence agency, who operate without official connection to the diplomatic authorities of the country that employs them. The declassified document explains that the suspected NOCs had secretly traveled to the USSR after being recruited by the KGB. They were then trained as spies before returning to Canada years later under new identities.

Others, like a naturalized Canadian identified in the documents as Ivan Kolaska, were believed by the CIA to have immigrated to Toronto as part of a broader KGB effort to infiltrate the ranks of the anti-communist Eastern European expatriate community in Canada. Some of these infiltrators were able to settle in Canada, marry locals, get jobs and have families, while living a double life. The Star spoke to one Ukrainian immigrant to Canada whose name features in the declassified CIA files. Natalie Bundza, now 78, worked as a travel agent in 1950s’ Toronto and regularly led tourist groups to communist countries. She was a Ukrainian nationalist and anticommunist, but the CIA believed she was pretending to have these beliefs in order to infiltrate the Ukrainian expatriate community in Toronto. The American agency kept tabs on her and was able to compile a sizable file with information about Bundza’s friends and associates, her travel itineraries, and even the contents of her suitcases she took with her on international trips.

Author: Ian Allen | Date: 3 July 2015 | Permalink: http://intelnews.org/2015/07/03/01-1728/

Judge orders release of key testimony from Rosenberg spy case

Julius and Ethel RosenbergA United States district judge has ordered the release of the last major piece of sealed evidence in one of the most important espionage cases of the Cold War. The case led to the execution in 1953 of an American couple, Julius and Ethel Rosenberg, who were convicted of conspiring to spy for the Soviet Union. The Rosenbergs were arrested in 1950 for being members of a larger Soviet-handled spy ring, which included Ethel’s brother, David Greenglass. Greenglass later told a US court that he firmly believed the USSR should have access to nuclear technology and actively tried to give Moscow information on the Manhattan Project. Greenglass agreed to testify for the US government in order to save his life, as well as the life of his wife, Ruth, who was also involved in the spy ring. He subsequently fingered Julius Rosenberg as a courier and recruiter for the Soviets, and Ethel as the person who retyped the content of classified documents before they were surrendered to their handlers. This piece of testimony from Greenglass was used as the primary evidence to convict and execute the Rosenbergs.

However, although historians are confident that Julius Rosenberg was indeed an active member of the Soviet spy ring, there are doubts about Ethel. Many suggest that her involvement with her husband’s espionage activities was fragmentary at best, and that she refused to cooperate with the Federal Bureau of Investigation in an ill-judged attempt to protect her husband. The argument goes that Ethel was put to death as a warning to Moscow, as well as to intimidate other American spies, rather than on the basis of actual evidence of her involvement in espionage. Many years after the Rosenbergs’ execution, Greenglass claimed he had lied about Ethel’s role in the spy affair in order to protect his wife, who was the actual typist of the espionage ring.

The debate over Ethel Rosenberg’s fate will undoubtedly by rekindled by US District Judge Alvin Hellerstein’s decision last week to unseal Greenglass’ testimony. The documents could not be made public while Greenglass was alive, because he objected to their release. But he died last year in a nursing home in New York, so his testimony can now legally be made available to the public. In making his decision known, Judge Hellerstein said Greenglass’ testimony was a “critical piece of an important moment in our nation’s history”. The United States government is legally permitted to block the release of the documents should it decide to do so. But when a White House spokesperson was asked about the subject by the Associated Press, she decline to comment.

Author: Joseph Fitsanakis | Date: 26 May 2015 | Permalink: http://intelnews.org/2015/05/26/01-1703/

Analysis: The significance of Osama bin Laden’s bookshelf release

Osama bin LadenThe release this week of material from Osama bin Laden’s personal stack of books and documents, which were confiscated from his Abbottabad compound, is timely as it is important. The decision by the United States Office of the Director of National Intelligence (ODNI) to declassify the documents was almost certainly in response to recent claims that bin Laden was being kept under house arrest by the Pakistani intelligence services at the time of his assassination. American journalist Seymour Hersh, who made the allegations in the London Review of Books earlier this month, said that the Pakistanis were forced to give Washington permission to kill bin Laden once the CIA was able to confirm his presence in Pakistan.

By releasing the documents, the ODNI hopes to show that the al-Qaeda founder could not possibly have been under house arrest and still have been able to communicate with his al-Qaeda lieutenants. But there is a counterargument too, which rests on the view that al-Qaeda has been integrated into the command structure of the Pakistani intelligence services ever since the days of the anti-Soviet jihad of the 1980s. According to this view, it would not have been especially difficult for bin Laden’s captors to permit him to maintain carefully supervised communications with his organization. This would have given the Pakistanis the benefit of monitoring the operational thinking of al-Qaeda, while at the same time dispelling any speculation about his rumored death, which was widespread in the decade prior to his actual demise. Additionally, the feeling one gets from reading Hersh’s article is that the Pakistanis’ arrangement with bin Laden was a cross between internment and protection, with the emphasis shifting from one to the other depending on the changing needs of Pakistan’s Inter-Services Intelligence directorate.

The documents themselves are also revealing. They show that, almost to the end of his life, bin Laden continued to regard the United States as the foremost target of militant Islam. To that extent, it is interesting that the ODNI’s release includes almost no documents about Israel, Russia, India, or China. This points to a tactical prioritization of America as a target, and perhaps also a sense of vendetta that bin Laden himself held against his former allies in the Soviet-Afghan war of the 1980s. Moreover, the documents show that bin Laden continued to favor attacks designed to cause mass casualties, in the style of 9/11. Knowing that, and considering that no such attack took place against the United States after 9/11, one might logically conclude that al-Qaeda has been willing but unable to carry one out. Read more of this post

Revealed: Letters between Margaret Thatcher and KGB defector

Oleg GordievskyBy IAN ALLEN | intelNews.org
Files released this week have revealed part of the personal correspondence between the late British Prime Minister Margaret Thatcher and one of the Cold War’s most important Soviet spy defectors. Oleg Gordievsky entered the Soviet KGB in 1963. He soon joined the organization’s Second Directorate, which was responsible for coordinating the activities of Soviet ‘illegals’, that is, intelligence officers operating abroad without official diplomatic cover. Gordievsky’s faith in the Soviet system was irreparably damaged in 1968, when Warsaw Pact troops invaded Czechoslovakia. In 1974, while stationed in Danish capital Copenhagen, he made contact with British intelligence and began his career as a double agent for the United Kingdom. In 1985, shortly before he was to assume the post of KGB station chief at the Soviet embassy in London, he was summoned back to Moscow by an increasingly suspicious KGB. He was aggressively interrogated but managed to make contact with British intelligence and was eventually smuggled out of Russia via Finland, riding in the trunk of a British diplomatic vehicle. His defection was announced a few days later by British Prime Minister Margaret Thatcher, who had personally approved his exfiltration from the USSR. Files released this week by the British National Archives show that the British Prime Minister took a personal interest in Gordievsky’s wellbeing following his exfiltration, and even corresponded with him after the Soviet defector personally wrote to her to ask for her intervention to help him reunite with his wife Leila and two daughters, who remained in the Soviet Union. In his letter, written in 1985, Gordievsky told Thatcher that his life had “no meaning” unless he was able to be with his family. On September 7, 1985, the British Prime Minister responded with a letter to the Soviet defector, urging him not to give up. “Please do not say that life has no meaning”, she wrote. “There is always hope. And we shall do all to help you through these difficult days”. She added that the two should meet once the “immediate situation” of the worldwide media attention caused by his exfiltration subsided. Thatcher went on to publicly urge for Moscow to allow Gordievsky’s family to reunite with the Soviet defector, “on humanitarian grounds”. But it was in 1991, after the collapse of communism in the USSR, when Gordievsky’s family was finally able to join him in the UK.

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