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.

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British spies infiltrated Nazi sympathizer groups, wartime files show

Page from MI5's Jack King filesBy JOSEPH FITSANAKIS | intelNews.org
A British counterintelligence agent managed to neutralize an extensive network of Nazi sympathizers in the United Kingdom by pretending to represent the German government, newly released files show. The documents, which were released this week by the British National Archives, identify the agent only as “Jack King”, which was the operational codename given to him by his handlers in the British Security Service, commonly known as MI5. Senior officials at the agency, which is tasked with counterintelligence, described “King” as “a genius” at luring in Nazi sympathizers in the UK. The files show that “King’s” work helped MI5 identify hundreds of residents in Britain —most of them British citizens— as committed Nazis who were prepared to pass national secrets to Berlin. The MI5 operative utilized his pro-German contacts in the southeast of England and was able to infiltrate pro-Nazi circles operating in and around London. He did so by posing as an agent of the Gestapo, Nazi Germany’s secret police. He quickly gained the trust of some of the most fervent pro-German activists operating in the British Isles. These included Edgar Whitehead, Hilda Leech and Marita Perigoe, a Swedish resident of the UK, who was so fervently pro-Nazi that she once dismissed Oswald Mosley’s British Union of Fascists as “insufficiently extreme”. Many of these Nazi supporters pledged to “King” that they could be relied on to assist in the event of an invasion of Britain by Nazi forces. The files released by the National Archives show that “King” was well connected with British Nazis by 1942. Read more of this post

US employed ex-Nazis to develop interrogation methods

Allen DullesBy IAN ALLEN | intelNews.org
The United States relied on the assistance of dozens of German scientists to develop invasive interrogation techniques targeting the Soviet Union in the early years of the Cold War, according to a new book on the subject. The book, entitled Operation Paperclip: The Secret Intelligence Program that Brought Nazi Scientists to America, by American journalist Annie Jacobsen, is to be published this week. Operation PAPERCLIP was initially set up during World War II by the US Office of Strategic Services (OSS), a forerunner of the Central Intelligence Agency (CIA). Its aim was to recruit scientists that had previously been employed by the German Third Reich, with the primary goal of denying German scientific expertise to the USSR. Hundreds of former Nazi scientists were brought to the US under secret military research contracts during the second half of the 1940s. Eventually, the recruited scientists were used to augment an entire array of American government-sponsored endeavors, including the space program and several intelligence collection techniques. Jacobsen’s book details Operation BLUEBIRD, a program run by the CIA under PAPERCLIP, which employed former Nazi biological weapons experts, chemists and medical doctors. The latter were tasked with employing lysergic acid diethylamide, commonly known as LSD, in order to involuntary extort confessions from Soviet intelligence targets. In several cases, the hallucination-inducing chemical substance was dispensed on Soviet captives, who were also subjected to hypnosis and other methods of psychological manipulation. According to the book, the techniques were developed under the primary supervision of Dr. Walter Schreiber, Germany’s Surgeon General during the Third Reich. Schreiber helped the OSS set up an experimentation facility at Camp King, a CIA site located near Frankfurt in the American sector of Allied-occupied Germany. Read more of this post

WWII files reveal bizarre case of British cross-dressing spy

Dudley ClarkeBy IAN ALLEN | intelNews.org |
A set of World War II-era British Foreign Office documents detail a highly unusual incident of a senior British spy, who was arrested in Spain for cross-dressing. The files, which were released this week by the National Archives, concern the case of Lieutenant Colonel Dudley Clarke, a senior operative of British intelligence who served with distinction in Europe and the Middle East. In October of 1941, Clarke was traveling though Spain en route to Egypt, by way of the British colony of Gibraltar. His instructions were to maintain a low profile throughout his trip, during which he posed as a foreign correspondent for The London Times. In reality, he was carrying with him key naval intelligence addressed to the British high command in Cairo. However, soon after arriving in Spanish capital Madrid, Clarke was arrested for appearing in a busy street dressed as a woman. A frantic cable sent to the Foreign Office by the British embassy in Madrid mentioned that the intelligence officer had been detained after he had been found “in a main street dressed —down to a brassiere— as a woman’. According to the —now declassified— memoranda complied by the Foreign Office, Clarke had told his Spanish police captors that he was “a novelist” and had dressed as a woman in order to “study the reactions of men to women in the streets”. But the conservative police officials in Francoist Spain did not buy Clarke’s story, and decided to charge him with “engaging in homosexual behavior”. London, meanwhile, was trying frantically to ensure that Clarke was released before either Spanish or German authorities realized that he was a British intelligence officer. The Foreign Office cabled the British embassy in Madrid with direct instructions that “in no circumstances should it be revealed that C[larke] is a British [intelligence] officer”. Read more of this post

News you may have missed #814

Ilir KumbaroBy IAN ALLEN | intelNews.org |
►►Israel accuses Palestinian of spying for Hezbollah. Israel’s Shin Bet internal security agency says a Palestinian man has been charged with relaying information to Hezbollah in Lebanon about sensitive government sites, including parliament. It identified the suspect as Azzam Mashahara, a resident of east Jerusalem, which Israel captured in 1967. Palestinian residents of east Jerusalem, unlike Palestinians from the West Bank or the Gaza Strip, have Israeli identity cards that allow them to travel freely within Israel. Mashahara was charged with maintaining contacts with a foreign agent and relaying information to the enemy.
►►UK agency tries to crack coded message from WWII-era carrier pigeon. The note, written on official stationary with the heading “Pigeon Service,” was discovered in a red canister attached to the skeletal leg of a pigeon in a chimney in Surrey, England. The message is made up of 27 seemingly random five-letter blocks and though it’s undated, government analysts believe the pigeon met his end while on a secret mission during the Second World War. The note is signed “Sjt W Stot” and was intended for the destination “XO2”. In a statement, Britain’s Government Communications Headquarters (GCHQ), said that during the war secret communications would often utilize specialized codebooks “in which each code group of four or five letters had a meaning relevant to a specific operation, allowing much information to be sent in a short message”. The GCHQ said that those messages may have been put through an additional layer of security by being re-coded with what’s known as a one-time pad.
►►Albania court convicts fugitive ex-spy chief. An Albanian court has convicted Ilir Kumbaro, the country’s fugitive former intelligence chief, of murder for the 1995 death of a suspect who was illegally detained for an alleged plot to murder the President of the Republic of Macedonia. The victim, businessman Remzi Hoxha, an ethnic Albanian from Macedonia, was abducted by the secret police 17 years ago along with two other suspects for allegedly planning to kill then-Macedonian President Kiro Gligorov during a visit to Albania. The court said the three suspects were held illegally and tortured during questioning. Kumbaro traveled to Britain in 1996 under a false identity, claiming to be a refugee from Kosovo. He has been missing for a year, after skipping an extradition hearing in London. Hoxha was never found and is presumed to have died in custody.

News you may have missed #807

Noor Inayat KhanBy IAN ALLEN | intelNews.org |
►►Britain to unveil statue of female SOE spy of Indian origin. Born in Moscow to an Indian father and an American mother, Noor Inayat Khan was in Paris when it fell to Nazi occupation. She immediately returned to London to volunteer for the war effort, joined the Women’s Auxiliary Air Force and was recruited by the Special Operations Executive (SOE). She was sent into France on a secret mission in June 1943, but was betrayed and captured a few months later. She was shot by the Nazis in Dachau in September 1944, aged 30, and was posthumously awarded the George Cross as well as the Croix de Guerre by France. She was one of only three women in the SOE to be awarded the George Cross.
►►US intelligence spending falls or second year in a row. The US government’s total spending on intelligence activities fell in 2012, the second year in a row of declining numbers after years of soaring security spending since the September 11 attacks in 2001. The Office of Director of National Intelligence, the top US intelligence authority, announced on Tuesday that total funding appropriated for the National Intelligence Program, covering activities of the CIA and high-tech spy agencies such as the National Reconnaissance Office, was $53.9 billion in Fiscal Year 2012, which ended on September 30. That was down from the $54.6 billion appropriated during Fiscal Year 2011, according to government officials and figures published by the private Federation of American Scientists.
►►Russia wants to park spy planes on French base. France has been asked by Moscow to allow two Russian spy planes to be deployed at a French base in Djibouti to help track down pirates. Russian Defense Minister Anatoly Serdyukov said last week that the Ilyushin Il-38 naval reconnaissance planes would improve Russia’s ability to spot pirates plaguing waters off the coast of Somalia. Djibouti is at the juncture of the Red Sea and the Gulf of Aden. The French base is home to several thousand French service members and a number of military aircraft.

News you may have missed #795

Shakil AfridiBy IAN ALLEN | intelNews.org |
►►US ‘cannot verify authenticity’ of Afridi interview. The US says it cannot verify an alleged interview by Shakeel Afridi, a Pakistani medical doctor who helped the CIA find Osama bin Laden. In May, a Pakistani court sentenced Afridi to 33 years in jail after he was arrested following the killing by US troops of bin Laden in May 2011 at his compound in the town of Abbottabad. US television channel Fox News said Tuesday it had obtained an exclusive phone interview with Afridi from behind bars, in which he detailed months of torture by Pakistan’s shadowy Inter-Services Intelligence.
►►Evidence suggests US covered up Soviet massacre in Poland. New evidence appears to back the idea that the US administration of President F.D. Roosevelt helped cover up Soviet guilt for the 1940 Katyn massacre, in which more than 22,000 Poles were killed by the Soviets on Stalin’s orders. Historians said documents, released by the US National Archives, supported the suspicion that the US did not want to anger its wartime ally, Joseph Stalin. The documents show that American prisoners of war sent coded messages to Washington in 1943 saying that the killings must have been carried out by the Soviets, rather than the Nazis. Information about the massacre was suppressed at the highest levels in Washington, say historians.
►►Yemen President sacks intel agency heads. Yemeni President Abd-Rabbu Mansour Hadi has sacked the heads of the National Security Agency and  Military Intelligence, just a few hours after two suicide car bombs targeted the country’s Defense Minister in the capital Sana’a killing at least 12 people. The National Security Agency’s Ali Mohammed al-Anisi has been replaced with Ali Hassan al-Ahmadi, while the head of Military Intelligence, Mujahid Ali Ghuthaim, has been replaced with Ahmed Muhsin al-Yafiee. Hadi took office in February this year after year-long street protests forced former President Ali Abdullah Saleh to step down as part of an UN-backed power transfer deal in return for immunity from prosecution.

News you may have missed #761

Robert de La RochefoucauldBy TIMOTHY W. COLEMAN | intelNews.org |
►►US aircraft company owner charged with supplying Venezuelan military. Kirk Drellich, owner and president of SkyHigh Accessories in Florida, has pleaded not guilty to charges that he illegally supplied Venezuelan military contacts with pressure switches and cooling turbines, as well as other airplane parts. Court documents indicate that the aircraft parts were to be used for Venezuelan F-16 jets, attack helicopters and other military crafts. Prosecutors in Florida have filed charges (.pdf), stemming from violations of the Arms Export Control Act, on three other individuals who are supposedly involved in the conspiracy to export arms to Venezuela. Other defendants in the case include Alberto Pichardo and Freddy Arguelles, both former members of Venezuela’s Air Force, as well as Victor Brown, a local businessman.
►►Trial delayed again in Delisle espionage case. As previously reported on this blog, the espionage case against Sub-Lt. Jeffrey Paul Delisle, the Canadian navy intelligence officer accused of spying for Russia, has again been delayed. The attorney for Delisle requested an adjournment based on the governments disclosure of new documents and evidence in the case. The adjournment is expected to last until July 17.
►►Legendary WWII spy de La Rochefoucauld dies. Robert de La Rochefoucauld, a French national who became a legendary British spy, helping direct and organize the Free French forces in England and underground movements in France during World War II, has died of natural causes at the age of 88. De La Rochefoucauld’s exploits as a spy have all the makings of a movie. As a little boy, he met Adolf Hitler, and as a spy he twice escaped execution by the Nazi’s. He was a knight in the French Legion of Honor, received the Medal of Resistance from France, was widely herald for his exceptional service by the British and he is believed to have been the last remaining French member of Winston Churchill’s Special Operations Executive.

How an ambitious Nazi spy operation in the US ended in failure

Norden bombsightBy IAN ALLEN | intelNews.org |
A well-researched article in The Chicago Tribune revisits one of the least known covert action episodes of World War II, which involved an ambitious Nazi espionage operation on US soil. The article, written by Ron Grossman, centers on Herbert Haupt, one of several American citizens and Nazi sympathizers, who were involved in the ruse. The German-born Haupt grew up in Chicago’s North Side and was working in West Garfield Park, at a factory that produced parts used for the Norden bombsight. The Norden bombsight was a sophisticated device that calculated the trajectory of a bomb dropped by an airplane, based on real-time flight conditions; moreover, it was connected to the aircraft’s autopilot, and was thus able to alter bomb trajectories according to changes in the wind, altitude, aircraft speed, or other effects. The Norden bombsight facilitated unprecedented bombing accuracy from high altitudes, and was thus rightly considered one of America’s most highly valued military secrets. In 1941, shortly before the United States entered World War II, Haupt took a leave of absence from his factory job and disappeared from the streets of Chicago’s North Side. It was later revealed that he traveled to Mexico City and presented himself at the German embassy there, offering to conduct espionage work for Nazi Germany. After securing a sum of money from German embassy officials, Haupt sailed to Japan and eventually made his way to Germany. A few months later, he illegally re-entered the US, sailing on a German U-boat that landed secretly in Florida carrying four German agents, all fluent English speakers. A second U-boat, carrying another four German agents, had landed almost simultaneously on Long Island. Haupt’s mission was to reenlist at the Norden bombsight factory in Chicago, so as to provide Nazi Germany with access to the top-secret device. Read more of this post

News you may have missed #718 (GCHQ edition)

GCHQ center in Cheltenham, EnglandBy IAN ALLEN | intelNews.org |
►►GCHQ releases Alan Turing papers. Britain’s signals intelligence agency, GCHQ has released two mathematical papers written by cryptographer Alan Turing after keeping the works secret for over half a century. The intelligence agency believes the handwritten papers were produced by Turing during his time at Bletchley Park, the World War II code-breaking center. The year 2012 marks the centenary of Alan Turing’s birth. Turing, whose work heavily contributing to the Allied war effort, committed suicide in 1954 by taking cyanide. Turing had been convicted of homosexuality, which was then a crime, and was given the choice between prison or chemical castration. The UK government officially apologized over Turing’s treatment in 2009, over 50 years after his death.
►►Britain’s GCHQ sued for ‘racism’. Alfred Bacchus, 42, claims he was bullied by bosses while he was a senior press officer at the Government Communications Headquarters in Cheltenham. He says he wanted to publish an official report in 2010 into race bias inside GCHQ which warned that not enough ethnic minority staff were being recruited to help fight terrorism. It found that black and Asian intelligence officers at GCHQ complained of a racist culture in which they were insulted by white colleagues and challenged over their loyalty to Britain.
►►Ex-GCHQ chief wants more surveillance of Facebook and Twitter. Sir David Omand, an ex-Cabinet Office security chief and former director of Britain’s GCHQ electronic eavesdropping agency, said it was essential that monitoring of social media was put on a proper legal footing. A report by the think-tank Demos, which Sir David co-authored, said existing laws regulating the interception of communications by police and intelligence agencies needed to be overhauled to meet the complexities of social media. However, the ability of state security agencies and the police to intercept social network communications such as tweets must be placed on a clear legal footing, the report says.

News you may have missed #686

Folkert Arie van KoutrikBy IAN ALLEN| intelNews.org |
►►WikiLeaks to publish 5 million StratFor emails. In its latest high-profile data dump, WikiLeaks is to reveal five million internal and external emails from StratFor today. In a press release late Sunday, Wikileaks said the emails “show StratFor’s web of informers, pay-off structure, payment-laundering techniques and psychological methods”, and reveal “how StratFor has recruited a global network of informants who are paid via Swiss banks accounts and pre-paid credit cards. Stratfor has a mix of covert and overt informants, which includes government employees, embassy staff and journalists around the world”.
►►Analysis: Blurred line between espionage and truth under Obama. “There is plenty of authorized leaking going on, but this particular boat leaks from the top. Leaks from the decks below, especially ones that might embarrass the administration, have been dealt with very differently [...]. And it’s worth pointing out that the administration’s emphasis on secrecy comes and goes depending on the news. Reporters were immediately and endlessly briefed on the “secret” operation that successfully found and killed Osama bin Laden. And the drone program in Pakistan and Afghanistan comes to light in a very organized and systematic way every time there is a successful mission”.
►►Nazis had spy in MI5 but failed to use him. Dutchman Folkert Arie van Koutrik was the first German agent to ever infiltrate MI5 when he was employed by them in 1940, just a month before Anthony Blunt, who was later exposed as a Soviet spy. Koutrik had already worked for Abwehr, the German secret service, before the war as a double agent with MI6 in Europe and exposed some of the UK’s top agents. But, incredibly, after he moved to the UK and joined MI5 all contact appears to have broken off.

News you may have missed #666 (superstition edition)

Gevork VartanianBy IAN ALLEN | intelNews.org |
►►Soviet spying legend Gevork Vartanian dies. Legendary Soviet spy Gevork Vartanian, who helped foil Operation LONG JUMP, a Nazi plot to kill the three main Allied leaders in Tehran during World War II, has died in Moscow, aged 87. Operating in Tehran during World War II, he tracked German commandos, including the infamous Nazi operative Otto Skorzeny, who had arrived to attack a summit attended by Stalin, Roosevelt and Churchill.
►►Turkey arrests ex-armed forces chief over coup charges. Turkish government prosecutors allege that Ilker Basbug, who retired as Turkey’s chief of staff in 2010, led a terrorist organization and plotted to overthrow the government. Remarkably, most English-language sources, including the Financial Times, managed to report Basbug’s arrest without mentioning Ergenekon, the ultra-nationalist network uncovered by Turkish police in 2007, which has resulted in hundreds of arrests, including that of Basbug.
►►Lebanon claims arrest of ‘longtime’ Israeli spy. The Lebanese army has detained a man on suspicion of collaborating for years with Israel’s Mossad spy agency. The man, identified as Elias Younes, is a retired employee of the state telecommunications company Ogero. Hezbollah-affiliated sources said Younes had been dealing with Israel for “over 35 years”. See here if you are wondering where you have heard before about Lebanese telecommunications employees allegedly spying for Israel.

British Nazi was in fact MI5 double spy, new book reveals

Arthur OwensBy JOSEPH FITSANAKIS | intelNews.org |
A Welsh nationalist, whose aversion to British rule led him to spy for Nazi Germany during World War II, was in fact a double spy for Britain, and was instrumental in helping he Allies win the war, a new book reveals. The book, Snow: The Double Life of a World War II Spy, by Madoc Roberts and Nigel West (At Her Majesty’s Secret Service, A Matter of Trust, etc), centers on the life of Arthur Owens, who was recruited by the Abwehr, Germany’s military intelligence, in 1935, during a business trip to the Continent. Given the operational codename JOHNNY O’BRIEN by the Germans, he quickly began providing Berlin with inside information on Britain’s military buildup in the run-up to the War. But, according to Roberts and West, who base their account on declassified government documents, British counterintelligence agency MI5 became aware of Owens’ espionage activities and eventually recruited him as a double agent for the Crown. According to the book, Owens, who was given the codename SNOW by his British masters, became one of the human intelligence cornerstones of MI5’s XX (Double-Cross) System. Consisting of a close-knit group of deception specialists, XX is known for a series of outrageous —and often highly successful— covert operations during World War II, including Operation FORTITUDE, a plan to deceive the Germans about the location of the invasion of Europe by the Western Allies. The authors claim that agent SNOW’s activities successfully lured a large number of Nazi agents into the arms of MI5, thus eventually paving the way for some of MI5’s greatest wartime counterintelligence successes. In fact, it is believed that Owens’ pro-Nazi activities were so convincing, and his operational cover so deeply buried within the XX System, that in 1941 his MI5 handlers recommended that he be interned in a British prison. But the book alleges that, while in prison in Dartmoor, England, SNOW continued his intelligence collection for the Crown and kept feeding his handlers with information extracted from the prison’s German inmates. Read more of this post

News you may have missed #641 (US edition)

Dennis Blair

Dennis Blair

►► US Navy memo had warned Roosevelt of 1941 attack. Three days before the December 7, 1941, Japanese attack on Pearl Harbor, US President F.D. Roosevelt was warned in a memo from US naval intelligence that Tokyo’s military and spy network was focused on Hawaii. The 20-page memo has been published in the new book December 1941: 31 Days that Changed America and Saved the World, by Craig Shirley.
►►US spy agencies cut their holiday parties. Holiday gatherings have provided rare opportunities for US congressional staff, embassy aides, government officials, and the media to mix it up —off the record— with the spy set. But this year, agency budget Scrooges have taken aim at high-priced holiday merriment. The Director of National Intelligence has canceled holiday parties altogether, and the Central Intelligence Agency has drastically downsized its guest list and lavish spread by more than 50%.
►►Ex-DNI Blair wants Pentagon in charge of drone strikes. The United States’ former Director of National Intelligence Dennis Blair, who previously proposed scaling back the armed drone operation run in Pakistan by the CIA, is now urging that the program be publicly acknowledged and placed in the hands of the US military.

Spy archivist discusses fate of Swedish diplomat abducted by KGB

Raoul Wallenberg

Raoul Wallenberg

By JOSEPH FITSANAKIS | intelNews.org |
The fate of Swedish diplomat Raoul Wallenberg, who was abducted by Soviet intelligence officers in the closing stages of World War II, is one of the unsolved mysteries of 20th century espionage. The 33-year-old Wallenberg was a shrewd businessman who, in the summer of 1944, was posted as Sweden’s ambassador in Budapest, Hungary. During his time in Budapest, he was able to save over 20,000 Hungarian Jews from the Nazi concentration camps, by supplying them with Swedish travel documentation, or smuggling them out of the country through a network of safe houses. He is also reported to have managed to dissuade German military commanders from launching an all-out attack on Budapest’s Jewish ghetto. But Wallenberg was also an American intelligence asset, having been recruited by a US spy operating out of the War Refugee Board, an American government outfit with offices throughout Eastern Europe. In January of 1945, as Soviet forces descended on Axis ally Hungary, Moscow gave orders for Wallenberg’s arrest on charges of spying for Washington. The Swedish diplomat disappeared, never to be seen in public again. Some historians speculate that Joseph Stalin initially intended to exchange Wallenberg for a number of Soviet diplomats and intelligence officers who had defected to Sweden. But according to official Soviet government reports, Wallenberg died of a heart attack on July 17, 1947, while being interrogated at the Lubyanka, a KGB-affiliated prison complex in downtown Moscow. Despite the claims of the official Soviet record, historians have cited periodic reports that Wallenberg may have managed to survive in the Soviet concentration camp system until as late as the 1980s. Earlier this week, Lt. Gen. Vasily Khristoforov, Chief Archivist for the Russian Federal Security Service (FSB), one of two successor agencies to the old Soviet KGB, gave an interview about Wallenberg to the Associated Press. Read more of this post

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