Spy agencies scramble for clues after North Korean leader’s death

Kim Jong IlBy JOSEPH FITSANAKIS* | intelNews.org |
Even though rumors had been rife for quite some time about North Korean leader Kim Jong Il’s worsening health, his death startled intelligence agencies the world over. In typical fashion, North Korean state media announced yesterday that “the dear leader” had died on Saturday onboard a train during one of his usual field trips, “due to immense mental and physical strain caused by his […] building of a thriving nation”. A period of national mourning has been declared in the country until December 29. In the hours following the startling announcement, which Time magazine dubbed “a nightmare before Christmas”, no unusual activity was observed in the North, while early Monday reports from North Korean capital Pyongyang stated that traffic was “moving as usual”. Moreover, despite longstanding rumors about Kim Jong Il’s ill health, few intelligence analysts in South Korea, Japan, or the United States have been observing overt signs of political instability, or a leadership crisis. However, despite the apparent calm in the North, intelligence agencies around the world have gone on high alert, led by those in South Korea, which has remained technically at war with the North since 1950.  South Korean President Lee Myung-bak reportedly placed the country’s military on emergency alert on Sunday, and has ordered government officials to remain in capital Seoul and “maintain emergency contact” with their office staff. French sources said that one of the first outcomes of an emergency National Security Council meeting that took place in Seoul on Sunday was to request that the American Pentagon, which maintains nearly 30,000 troops in South Korea, steps up aerial surveillance over the North. Japan has also stepped up its intelligence-gathering operations in North Korea, and its Prime Minister, Yoshihiko Noda, instructed his government to “closely share information” on North Korea with the United States, South Korea, and —notably— China. Read more of this post

Comment: Is China the New Spy Superpower?

US and China

US and China

By JOSEPH FITSANAKIS* | intelNews.org |
In fifteen years of monitoring intelligence-related developments, I have rarely seen so many news items about China appear simultaneously in the Western press, as I did during the past fortnight. On December 5, financial news network Bloomberg reported that the United States government invoked “Cold War-era national security powers” to compel telecommunications companies operating on American soil to disclose confidential data about their networks. The plan, spearheaded by the US Department of Commerce, but undoubtedly prompted and monitored by the National Security Agency, features a detailed survey distributed to dozens of telecommunications service providers, as well as hardware and software developers. The latter are reportedly required to supply “a detailed accounting” of every piece of “foreign-made hardware and software” installed on their networks, in a move that Bloomberg interprets as “a hunt for Chinese cyber-spying”. A few days later, intelligence researcher and author David Wise opined in The New York Times that the West had better recognize that China “has developed a world-class espionage service —one that rivals the CIA”. He qualified his statement by providing several examples of major espionage triumphs achieved by the Chinese intelligence services in the last decade, such as the acquisition of design blueprints for the US-built B-1 bomber and Northrop Grumman’s B-2 stealth bomber. Other examples given by Wise include China’s attainment of the design specifications for the US Navy’s Quiet Electric Drive system, aimed at enhancing the stealth abilities of submarines, as well as the remains of the modified Black Hawk helicopter that crashed in Abbottabad, Pakistan, during the CIA-led operation to assassinate al-Qaeda founder Osama bin Laden last May. Most of all, Wise laments the acquisition by the Chinese of the design specifications for the W-88 warhead, the symbol of America’s next-generation of mini-nuke weapons. Read more of this post

News you may have missed #645

Turki al-Faisal

Turki al-Faisal

►►Polish authorities arrest retired spy. The former head of Poland’s State Protection Bureau (1993-96) has been detained by officers of the country’s Central Anticorruption Bureau. Identified as Gromoslaw Cz., the arrestee is a retired general and intelligence officer, who participated in the extraction of CIA officers in Iraq in 1990. According to TVN 24 news, Gromoslaw Cz.’s detention is connected with events surrounding the privatization of the G-8 group of energy companies in the years 1994-2004, which eventually set up Energa concern in 2005.
►►Are China’s hotel rooms bugged? What could have been a dull security conference in Canada last week turned into a pretty interesting one, when former diplomat Brian McAdam claimed that “virtually all” hotels in China are rigged with hidden microphones and video cameras. The latter, he said, are used by the Chinese government to recruit many of its informants, by catching them in the act in carefully planned liaisons.
►►Ex-spy chief says Saudi Arabia may join nuke arms race. Saudi Arabia may consider acquiring nuclear weapons to match regional rivals Israel and Iran, its former intelligence chief Prince Turki al-Faisal said on Monday. “Our efforts and those of the world have failed to convince Israel to abandon its weapons of mass destruction, as well as Iran […]. Therefore it is our duty towards our nation and people to consider all possible options, including the possession of these weapons” Faisal told a security forum in Riyadh.

News you may have missed #642

Predator drone

Predator drone

►►Australia concerned China using civilian satellites to spy. Concerns that China may use civilian satellite tracking stations to monitor Australian military operations have been dismissed by the Swedish Space Corporation. The company owns and operates two satellite tracking stations 400 km north of the West Australian capital, Perth. One was used by the China Satellite Launch Company last month in China’s first space docking operation.
►►Did Iran capture US stealth drone intact? For the second time this year, the Iranian government is claiming it forced down a stealthy US Air Force spy drone. Only this time, it says it bagged the RQ-170 “with little damage” by jamming its control signal —a potentially worrying development for American forces heavily reliant on remote-controlled aircraft. A US official, who asked not to be named, told Reuters that “there is absolutely no indication up to this point that Iranians shot down this drone”.
►►Canadian Mounties spied on native protest groups. Canada’s federal government created a vast surveillance network in early 2007 to monitor protests by First Nations, including those that would attract national attention or target “critical infrastructure” like highways, railways and pipelines, according to RCMP documents. The RCMP intelligence unit reported weekly to approximately 450 recipients in law enforcement, government, and unnamed “industry partners” in the energy and private sector. The news follows revelations last month of the RCMP’s largest-ever domestic intelligence operation, aimed against G8 and G20 protesters.

News you may have missed #640

Amos Yadlin

Amos Yadlin

►►Chinese defector says Canada right to worry about spying. Li Fengzhi, a former intelligence officer for China’s Ministry of State Security, who defected to Canada in 2003, has told a conference that Canada should be concerned about relationships between senior politicians and journalists from China, saying Beijing is targeting lawmakers everywhere. He was referring to the case of senior Conservative MP Bob Dechert, who was enveloped by controversy in September over amorous e-mails he sent to Shi Rong, a Chinese government journalist based in Toronto. After the Dechert controversy broke, the journalist recalled to Beijing to meet with her superiors and has not returned to her Canadian posting.
►►More intel officials warn against airstrikes on Iran. Meir Dagan, the former head of Israeli spy agency Mossad, is not alone in warning against the possibility of Israeli attacks against Iran’s nuclear program. He has now been joined by Major General Amos Yadlin, who until recently headed Israel’s Military Intelligence directorate. Speaking at Israel’s Institute for National Security Studies, Yadlin doubted that airstrikes could threaten Iran’s numerous, distant and well-defended nuclear facilities. Another intelligence official, Saudi Arabia’s Prince Turki al-Faisal, also cautioned last week against any attacks on Iran, saying that “there are other non- military policy alternatives, as yet unexplored, that could have the desired result without the unwanted consequences”.
►►GCHQ challenges code breakers via social networks. Britain’s signals intelligence agency, the General Communications Headquarters, has launched a code cracking competition to help attract new talent. The organization has invited potential applicants to solve a visual code posted at an unbranded standalone website. The challenge will also be ‘seeded’ to social media sites, blogs and forums. A spokesman said the campaign aimed to raise the profile of GCHQ to an audience that would otherwise be difficult to reach.

News you may have missed #634

Husain Haqqani

Husain Haqqani

►►Korean ex-soldier investigated for spying. Police suspect that a former South Korean Army soldier, Kim, 34, whose full name was undisclosed to the media, crossed through Shenyang, northeastern China, into the North and handed over information gathered during and after his military service. This is the second case involving alleged North Korean spying on the South in as many days.
►►Pakistan ambassador to US resigns over spy memo row. Islamabad’s ambassador to Washington, Husain Haqqani, has resigned after a confrontation between Pakistan’s military and the civilian government of President Asif Ali Zardari. His resignation follows reports of an offer by the Pakistani government to the United States to rein in the army and its spy agency, Inter-Services Intelligence. Zardari’s government was accused of treachery over the proposal, which was made in a memo delivered to the US military chief, Admiral Mike Mullen.
►►US says ‘no proof’ of Libyan ex-spy chief’s capture. It emerged earlier this week that former Libyan intelligence chief Abdullah al-Senussi had been captured. But the United States now says there is no proof he is in custody. According to Susan Rice, the US envoy to the United Nations, Libyan authorities “were not able to confirm that Senussi was in anybody’s custody”.

Analysis: China an ‘easy scapegoat’, says leading cybersecurity expert

Mikko Hypponen

Mikko Hypponen

By JOSEPH FITSANAKIS | intelNews.org |
It is fashionable nowadays to single out China as the primary source of global cyberespionage. During the past few days alone, the Japanese government said Chinese hackers had attacked computers systems in its Lower Parliament, while Britain’s General Communications Headquarters (GCHQ) pointed to Beijing as the main culprit behind an unprecedented rise in organized cyberattacks. A few days ago, the United States intelligence community publicly named for the first time China and Russia as “the most aggressive collectors” of US economic information and technology online. But is the image of China as the ultimate cyber-villain accurate? Not necessarily, according to leading cybersecurity expert Mikko Hypponen. Speaking earlier this week at the PacSec 2011 conference in Tokyo, Japan, Hypponen, who leads computer security firm F-Secure, disputed the predominant view that a single country could be the source of the majority of organized cyberattacks directed against governmental and corporate targets. It is true, said Hypponen, that cyberespionage attacks “are commonly attributed to the Chinese government”. Moreover, it does appear like “a lot” of these attacks are indeed coming from Chinese sources, he said. But the problem of attribution —accurately and conclusively determining the responsible agency behind a cyberattack— remains unresolved in our time. Even if Chinese servers are conclusively identified as sources of such attacks, it would be dangerous to assume that Chinese government operatives —and not rogue agents, or nationalist hacker gangs— are necessarily behind them. Additionally, it is entirely possible that other countries —perhaps even Western countries— could be behind such attacks, but that they consciously try to mask them in such a way as to make China appear responsible. The reason is that Beijing is “such an easy scapegoat”, said Hypponen. Read more of this post

News you may have missed #625

Ahmed Al Hawan

Ahmed Al Hawan

►►Egypt’s most famous spy dies at 74. Egypt’s most famed spy on Israel, Ahmed Al Hawan, 74, has died after a long fight with illness, local media reported on Wednesday. Al Hawan worked for the Egyptian intelligence service during the years that followed Egypt’s military defeat by Israel in 1967. He supplied the Israelis with mistaken and misleading information that was crucial in Egypt’s war with Israel in 1973.
►►Analysis: Dark days for Taiwan’s spies. When Taiwan’s government last month announced budget cuts in military intelligence, the Ministry of National Defense (MND) insisted operations against mainland China would not be affected. However, media paint a vastly different picture, suggesting Taiwan’s future leaders will be completely deaf and blind to secretive developments across the Taiwan Strait.
►►US cyberespionage report names adversaries. A US intelligence report released last week concluded China and Russia are “the most aggressive collectors” of US economic information and technology online. But the report also states that America’s “allies and partners“, including the “French and the Israelis” are also stealing the s vital industrial and commercial secrets by infiltrating computer networks.

News you may have missed #624

Viktor Bout

Viktor Bout

►►Russia angry at Viktor Bout’s US guilty verdict. Moscow has reacted angrily to the guilty verdict handed down to Russian arms dealer Viktor Bout by a court in the United States. Bout, a former Soviet military intelligence (GRU) officer, was arrested in a sting operation in Bangkok, Thailand, in March of 2008. At the time of his arrest, he and his two collaborators were negotiating a complex weapons deal with two informants posing as representatives of the Revolutionary Armed Forces of Colombia (FARC), Latin America’s largest leftist paramilitary group.
►►Symposium examined Reagan’s use of intelligence. The CIA released more than 200 declassified documents it prepared for US President Ronald Reagan during a symposium last week at the Ronald Reagan Presidential Library in Simi Valley, California. The CIA conference, entitled “Ronald Reagan, Intelligence, and the End of the Cold War“, included a discussion by American and Soviet former spies.
►►Suspected Chinese spy loses bid to rejoin Canada civil service. Haiyan Zhang, worked as a senior communications analyst with the Privy Council Office in Ottawa. She was fired when Canada’s spy agency questioned her “loyalty to Canada” over suspicion she was spying for China. Now she has lost her fight to return to the civil service.

US report links telecoms company to Chinese spy services

Sun Yafang

Sun Yafang

By JOSEPH FITSANAKIS | intelNews.org |
For the first time a United States government agency has openly linked one of China’s main telecommunications companies with the country’s intelligence services. The alleged link is provided in a new report by the US Open Source Center, which acts as the open-source intelligence (OSINT) arm of the Office of the Director of National Intelligence. The report concludes that the company, Huawei Technologies, relies on a series of formal and informal contacts with the Chinese People’s Liberation Army and the Ministry of State Security (MSS), which oversee and administer China’s military and civilian intelligence apparatus. Founded in 1987 to import Western office telephone systems to China, the company has become one of the country’s leading exporters of all kinds of communications hardware equipment, ranging from routers to cell towers and undersea cables. But Huawei’s export growth has been hampered in recent years by widely circulated suspicions that the company maintains close ties to the Chinese military and intelligence establishments. The Open Source Center report adds to these suspicions, by pointing out that Huawei’s current chairperson, Sun Yafang (pictured), was an employee of the MSS Communications Department prior to joining Huawei in 1989. It also says that, prior to joining the company, Sun utilized her personal contacts at MSS to “help Huawei through financial difficulties at critical moments when the company was founded in 1987”. The close contacts between the —ostensibly private— company and the Chinese government have persisted ever since, says the report, and points out that the Chinese state has funded Huawei with nearly a quarter-billion dollars for “research and development” projects in the past three years alone. This is not the first time that Huawei has been accused of maintaining close contacts with Chinese intelligence agencies. In 2009, the Australian Security Intelligence Organisation (ASIO) investigated one of Huawei’s Australian-based subsidiaries for links to Chinese intelligence operations. In the following year, the Indian government barred the company from operating in India, citing its allegedly “strong links with the Chinese military”. Read more of this post

News you may have missed #609

Ilan Grapel

Ilan Grapel

►►Questions over Chinese spy hang over Putin visit. The arrest of a Chinese spy in Moscow has cast a cloud over Vladimir Putin’s two-day visit to Beijing. Tong Shengyong was arrested last October for allegedly trying to buy plans to the Russian S-300 anti-aircraft missile system. But perplexingly, the news of his arrest only emerged last week, in what appears to have been a deliberate leak by Russia’s Federal Security Service (FSB).
►►Egypt steps up charges against suspected Israel spy. Egypt’s State Security Prosecutor has added additional criminal offenses against alleged Israeli spy Ilan Grapel. Meanwhile, there are indications that Egypt seeks the release of 78 Egyptian prisoners held in Israeli jails in return for Grapel. Israel may agree with the proposal.
►►CIA to be last out of Afghanistan. US Special Forces and the CIA are girding for the moment when Afghanistan’s security rests once again with them, working together with Afghan forces against the Taliban. Recent remarks from the White House suggest the CIA and special operations forces will be hunting al-Qaida and working with local forces long after most US troops have left.

News you may have missed #607

Shakil Afridi

Shakil Afridi

►►Ex-worker sues US spy agency for anti-Islamic bias. Mahmoud Hegab, a former employee of the super-secretive US National Geospatial-Intelligence Agency, says he lost his security clearance because his wife attended an Islamic school and worked for a Muslim charity, Alexandria-based Islamic Relief USA.
►►Russia says China still spies the old-fashioned way. Russia’s Federal Security Service (FSB), issued a rare statement last week, claiming it had arrested Tong Shengyong, a Chinese citizen who, posing as a translator for official delegations, was working under the direction of the Chinese government in an attempt to buy state secrets from Russians about Russia’s S-300 missile system. It now says that the Tong case shows that China continues to employ an old standby in the tradecraft playbook: outright bribery.
►►Pakistan panel says doctor who aided CIA should face charges. Pakistani doctor Shakil Afridi, who ran a vaccination program for the CIA to help track down Osama bin Laden, should be put on trial for high treason, a Paksitani government commission said Thursday.

Russia reveals arrest of Chinese national on spy charges

FSB officer

FSB officer

By JOSEPH FITSANAKIS | intelNews.org |
Russian counterintelligence officials have revealed the arrest of an alleged Chinese intelligence operative, who has reportedly been imprisoned in Moscow for nearly a year and is awaiting trial on espionage charges. Russia’s FSB domestic intelligence agency said on Wednesday that it arrested Chinese national Tong Shengyong on October 28 last year. In a press statement, the FSB said that Tong’s professional cover was that of an “interpreter for official delegations”, but that in reality he was operating in Russia on an assignment from China’s Ministry of Public Security. The Ministry is the principal police and security authority of the People’s Republic of China, and is considered one of the world’s largest intelligence organizations. The FSB claims that Tong allegedly used his high-level contacts in Moscow and elsewhere to routinely solicit Russian nationals, offering to purchase from them information relating to Russian missile systems. According to the FSB, Tong was particularly interested in the S-300 long-range surface-to-air missile system, which developed for the Soviet Air Defense Forces as protection against American aircraft and cruise missiles. The Soviet-era system has since been replaced by the more advanced S-400, but China, which has historically been Russia’s largest weapons procurer, is already in possession of several S-300s, which it purchased from Moscow in the 1990s. Beijing is therefore desperate to access classified manuals that would allow it to repair and modify S-300s currently in its possession, without giving in to Russia’s insistence to upgrade to the post-Soviet S-400. Moreover, during the past decade, China has begun developing its own missile system technology, which some say is loosely based on Russian blueprints. Read more of this post

News you may have missed #600 (China edition)

Lo Hsien-che

Lo Hsien-che

►►Chinese spy stirs unease in Taiwan military. Excellent, well-researched piece by The Washington Post about Lo Hsien-che, a Major General in the Taiwanese military, who earlier this year was convicted in what has been described as Taiwan’s biggest spy scandal in over 50 years. Lo appears to have fallen victim to a carefully planned Chinese honey-trap operation, involving a “tall, beautiful and chic” Chinese female operative, who held an Australian passport.
►►US consulate guard accused of trying to spy for China. Bryan Underwood, a former contract security guard at a US consulate under construction in southern China’s largest city, Guangzhou, was charged Wednesday with trying to pass defense secrets about the site to Chinese intelligence officials. Scheduled for completion next year, the consulate is the only one under construction in the world’s most populous nation.
►►Taiwan professor detained for spying for China. Wu Chang-yu, of Taiwan’s Central Police University, was detained Friday for allegedly providing data on visiting Chinese activists to Beijing. Taiwan’s United Daily News quoted unidentified sources as saying Wu was recruited during a recent visit to China.

News you may have missed #596

August Hanning

August Hanning

►►Analysis: China’s growing spy threat. Extensive and well-research analysis by Alex Newman in The Dipomat magazine. The article contains input by –among others– Charles Viar, of the Center for Intelligence Studies, Larry Wortzel, formerly of the US-China Economic and Security Review Commission, and intelNews’ own Joseph Fitsanakis.
►►Dutch court orders compensation for Indonesian massacre widows. The Dutch state is responsible for executions committed by colonial troops at an Indonesian village in 1947 and relatives of victims should be compensated, a Dutch court has ruled. Eight widows and one survivor from the town of Rawagedeh, east of Jakarta, took the Dutch state to court in 2008 to claim compensation for the execution of men and boys on December 9, 1947 by Dutch colonial troops.
►►Bush official says Germany partly responsible for Iraq War fiasco. A few weeks ago, August Hanning, the former Director of Germany’s foreign intelligence service, the BND, accused the Bush administration of consciously falsifying intelligence supplied by Germany in order to justify going to war in Iraq. Hanning’s charges related to ‘Curveball’, an Iraqi defector to Germany who supplied the CIA with false information about Iraq’s alleged weapons of mass destruction, in order to justify his political asylum. But now the American side is fighting back. Larry Wilkerson, Colin Powell’s former chief of staff has told German newspaper Die Welt that the Germans were “at least partly responsible” for the war (article in German).