Australians investigate Chinese telecom over suspected spy links

Huawei HQ

Huawei HQ

By IAN ALLEN | intelNews.org |
The Australian Security Intelligence Organisation (ASIO), has admitted it is investigating an Australian-based subsidiary of a Chinese telecommunications firm because of its rumored links to China’s intelligence establishment. Several intelligence insiders see Huawei Technologies, based in Shenzen, China, as a covert arm of Chinese military intelligence. The company, which has business concerns in several countries around the world, has attracted the attention of American, Indian and British counterintelligence agencies, among others. As intelNews reported last December, in 2005 the government of India cancelled an initial investment of $60 million on its telecommunications superhighway by the Chinese company. Read more of this post

Australian diplomats targeted by fake email

David Irvine

David Irvine

By IAN ALLEN | intelNews.org |
The Australian government has issued a warning to its diplomats around the world about a fake email, which it says could be part of an organized cyberespionage campaign. The email began appearing in Australian diplomatic staff’s email inboxes late last month. It is titled “Australia-China Free Trade Agreement Negotiations Update” and its sender(s) reportedly targeted Australian diplomats specializing in Australia’s economic and security relations with China. The email’s title and focus has led some observers to speculate that it originated from groups with Chinese intelligence connections. But the Australian government remains silent on the matter, saying simply that the source of the suspicious email “is under investigation”. Earlier this month, David Irvine, the recently appointed director of the Australian Security Intelligence Organisation, identified cyberespionage as “a growing national security risk”.

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  • Attorney behind CIA lawsuit gives interview. Brian C. Leighton, the attorney representing former Drug Enforcement Agency officer Richard A. Horn, who claims that CIA agents illegally wiretapped his conversations, has given an interview to The Merced Sun-Star.
  • Germany accuses China of industrial espionage. A senior German counterintelligence official has said Germany is under attack from an increasing number of state-backed Chinese spying operations that are costing the German economy tens of billions of euros a year. Similar claims were made in May.

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Sweden expels Chinese diplomat after uncovering Uighur spy

Babur Mehsut

Babur Mehsut

By JOSEPH FITSANAKIS | intelNews.org |
On June 16, intelNews drew attention to a little-noticed news report from Sweden concerning the arrest of an unidentified spy who was caught keeping tabs on an undisclosed immigrant group in the country. The spy turned out to be Babur Mehsut, a Uighur exile with dual Chinese-Swedish nationality, who was apparently monitoring the political activities of Sweden’s Uighur community on behalf of Beijing. Sweden’s security service (SAPO) and the country’s Ministry of Foreign Affairs have declined commenting on the case. However, Swedish authorities have charged Mehsut with “unlawful acquisition and distribution of information relating to individuals for the benefit of a foreign power”, and earlier this week ordered the expulsion of a Chinese diplomat stationed in Stockholm. China responded a day later with the expulsion of a Swedish diplomat from Beijing. Read more of this post

News you may have missed #0028

  • Iran could have the bomb in six months, says German intelligence. Germany’s Federal Intelligence Service (BND) alleges that if the Iranians “wanted to they could test a nuclear bomb within half a year.”
  • Australian PM threatens China over Rio Tinto spy case. Kevin Rudd warned China it has “economic interests at stake”, less than a week after Beijing arrested the Australian chief of the Anglo-Australian mine company’s iron ore operations in China.
  • 12 Mexico intelligence officers mutilated and killed. The mutilated bodies of the one female and 11 male federal intelligence officer were left in a heap beside a road in rural Michoacan state. Drug gangsters launched a brutal offensive against the Mexican government last Saturday, after the capture of their senior leader, Arnaldo “La Minsa” Rueda. “We’re waiting for you,” read a taunting sign left with the bodies.
  • NRO releases unclassified portions of 2009 budget. The super-secretive US National Reconnaissance Office, which is in charge of US satellite spying, has released fragments of its FY2009 Congressional Budget Justification Book. Incidentally, a couple of weeks ago there were rumors circulating in Washington that NRO may be broken up into several smaller agencies.

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  • BREAKING NEWS: Several news outlets are reporting this morning that it was former US vice-President Dick Cheney who ordered the CIA to conceal from Congress key information about a covert action intelligence program of an undisclosed nature. See here for more.
  • New book claims Ernest Hemingway was KGB agent. The new book Spies: The Rise and Fall of the KGB in America (Yale University Press), co-written by John Earl Haynes, Harvey Klehr and Alexander Vassiliev, alleges that the Nobel prize-winning novelist was on the KGB’s list of agents in America from 1941, when he was given the codename “Argo” by the Soviets.
  • Thousands of former Stasi spies still working in German civil service. A report in the German edition of The Financial Times claims that over 17,000 former members of East Germany’s Stasi remain employed as civil servants in reunified Germany. Stasi is the name commonly used for the Ministry for State Security, communist East Germany’s secret police.
  • NSA director’s secret visit to New Zealand revealed. A reporter accidentally spotted Lieutenant-General Keith Alexander, director of the US National Security Agency, entering a Wellington building accompanied by security personnel. The revelation prompted a spokesperson at the US embassy in Wellington to admit that Alexander was indeed in New Zealand “for consultations with government officials”. The close signals intelligence relationship between the US and New Zealand have been known since 1996.
  • Chinese national caught trying to purchase crypto hardware. Chi Tong Kuok was arrested by the FBI at the Atlanta International Airport en route from Paris to Panama, where he allegedly planned to purchase US military radios. The US government claims Kuok has admitted he was “acting at the direction of officials for the People’s Republic of China”.
  • Taliban say cell phone SIM cards guide US drone strikes. A Taliban circular says SIM cards planted by informants in cell phones used by militants are used to signal American drones in Afghanistan and Pakistan. As IntelNews recently explained, there are suspicions that this and similar discoveries are gradually prompting the Taliban and al-Qaeda to stop using cell phones altogether.

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  • Australian detained on espionage charge in China. The arrest of Stern Hu, who heads Anglo-Australian Rio Tinto’s iron ore operations in China, comes right after the company backed out of a deal to sell China’s state-owned Chinalco a big stake in Rio Tinto.
  • US diplomat implicated in CIA abduction in Italy requests immunity. Days after the wife of a of Muslim cleric Hassan Mustafa Osama Nasr, who in 2003 was kidnapped by the CIA in Milan, Italy, announced plans to appeal to the European Court of Human Rights, a CIA agent involved in the affair has come forward requesting immunity. Sabrina De Sousa, who was listed as a “diplomat” at the US consulate in Milan at the time of Nasr’s kidnapping, has made the request through her lawyer. Last week, Robert Seldon Lady, who was the CIA station chief in Milan at the time, came forward making a similar case.
  • CIA won’t release torture interrogation contracts. The CIA has denied a Freedom of Information Act request for post-9/11 contracts signed between the CIA and Mitchell Jessen & Associates. As intelNews explained last May, Jim Mitchell and Bruce Jessen were the psychologists hired by the CIA to design an elaborate ten-stage interrogation program of “war on terrorism” detainees, which apparently culminated in waterboarding.

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  • Kim Jong Il’s son to head North Korea secret police. Since 1987, Kim Jong Il has been the official leader of the State Security Department of North Korea. However, South Korea’s Dong-a Ilbo reports that Kim Jong Un, Kim Jong Il’s third son, has now been named as the agency’s head. There are rumors in South Korea that the move could signify that a handover of power in Pyongyang may be imminent.
  • First US economic espionage trial winds down. A US court is preparing to sentence Dongfan “Greg” Chung, a Chinese-born engineer accused of passing critical trade secrets on the US space program to China for three decades. 
  • US and Venezuela to restore expelled ambassadors. The move appears to be a thawing gesture toward the new leadership in Washington by Venezuelan President Hugo Chavez. The Latin American leader has toned down his criticism of US foreign policy since Barack Obama took office in January, partly because the US president is popular in Latin America in contrast to his predecessor George W. Bush. 
  • US to send ambassador to Damascus. Washington has confirmed it is to send an ambassador to Damascus, ending a four-year diplomatic absence in Syria. The US envoy in Syria was withdrawn in 2005, following the assassination of Lebanon’s former PM Rafiq Hariri. 
  • Cuban Five spy case an obstacle to US-Cuban thaw, says Havana. The Cuban Five were arrested in 1998 and convicted of spying on anti-Castro exile groups on behalf of Havana. Cuba regards them as political prisoners and has lobbied intensively for their release. Cuban President Raúl Castro has said he would be willing to swap jailed political dissidents for the Five, but the US government has rejected the idea.

Foreign spy services active in Pakistani army’s war with the Taliban

Fazlullah

Fazlullah

By JOSEPH FITSANAKIS | intelNews.org |
Pakistani military and security officials alleged earlier this week that foreign intelligence services are helping pro-Taliban warlords fight the Pakistani army in Swat and in other tribal areas in Pakistan’s North-West Frontier Province. According to news reports from Islamabad, the officials have presented the Pakistani government with an extensive report alleging covert assistance to pro-Taliban forces from Indian and Israeli agents. The classified report alleges that Israel supplies tribal warlords “with modern technology”, including radio equipment, while Indian agents, operating out of Indian consulates in the region, are providing the Taliban with weapons and probably training. Pakistani military officials claim they have proof of visits by Indian operatives to Taliban training camps and of meetings between Indian operatives and leading pro-Taliban military leaders and propagandists, such as Maulana Fazlullah and Baitullah Mehsud. Read more of this post

Australian military absolves itself over ministerial spy scandal

By JOSEPH FITSANAKIS | intelNews.org |
Last March, the Australian press published allegations that the Australian military spied on the country’s defence minister because of his intimate relationship with a Chinese woman. According to the allegations, the Defence Signals Directorate (DSD), the Australian military’s communications interception organization, spied on defence minister Joel Fitzgibbon’s private communications and hacked into his computer. The purpose of the alleged operation was to gather information about the minister’s relationship with Helen Liu, a Chinese businesswoman with reported ties to the Chinese military. Last week however, the Australian Defence Department secretary, Nick Warner, released a declassified report detailing the outcome of the Department’s own investigation into the allegations. Read more of this post