Accused Chinese nuclear spy ‘to plead guilty’ in US court this week

China General Nuclear PowerA man at the center of the first case of Chinese nuclear espionage in United States history will be pleading guilty on Friday, according to court documents. This could mean that the alleged spy has decided to give the Federal Bureau of Investigation (FBI) details of Chinese nuclear espionage in the US. The accused man is Szuhsiung ‘Allen’ Ho, a Taiwanese-born engineer and naturalized American citizen. Ho was arrested by the FBI in April on charges of sharing American nuclear secrets with the government of China.

The investigation began when the Tennessee Valley Authority (TVA) contacted the FBI with concerns about Ching Huey, a TVA senior manager. When the FBI questioned the TVA executive, he admitted that Allen Ho had paid him in exchange for information about nuclear power production. He also said that he had traveled to China for that purpose, and that the Chinese government had covered his travel expenses. A few months later, the FBI arrested Ho in Atlanta, Georgia, and charged him with espionage. The FBI also claims that Ho’s US business firm, Energy Technology International, gave secrets to China General Nuclear Power, a Chinese company that supplies nuclear energy technology to the Chinese government. According to Ho’s indictment, he used his technical expertise and business acumen to give Beijing US government information that could help China’s civilian and military nuclear program.

Government prosecutors argued successfully that Ho, who has close family in China, including a son from a former marriage, could flee there if freed. Prosecutors also claim that Ho has access to several million US dollars abroad. For the past months, Ho’s defense denied the espionage accusations against him. But on Tuesday, a newspaper in Knoxville, Tennessee, where Ho has been charged, said that the jailed engineer is preparing to plead guilty in court on Friday. Observers believe that this move by Ho’s legal team means that he has decided to cooperate with the FBI. He could therefore provide US authorities with information about Chinese nuclear espionage in the US, and secrets on “the inner workings of China’s nuclear program”, said the newspaper.

Author: Ian Allen | Date: 4 January 2017 | Permalink

Chinese diplomat who defected to Australia breaks silence to warn of spies

Chen YonglinA Chinese diplomat, who made international news headlines in 2005 when he defected to Australia, has ended a decade of silence to warn about an alleged increase in Chinese espionage operations against his adopted country. Chen Yonglin was a seasoned member of the Chinese diplomatic corps in 2001, when he was posted as a political affairs consul at the Chinese consulate in Sydney, Australia. His job was to keep tabs on the Chinese expatriate community in Australia, with an emphasis on individuals and organizations deemed subversive by Beijing. He later revealed that his main preoccupation was targeting members of the Falun Gong spiritual movement, which is illegal in China. He also targeted supporters of Taiwanese independence, as well as Tibetan and East Turkestan nationalists who were active on Australian soil.

But in 2005, Chen contacted the Australian government and said that he wanted to defect, along with his spouse and six-year-old daughter. He was eventually granted political asylum by Canberra, making his the highest-profile defection of a Chinese government employee to Australia in over half a century. During a subsequent testimony given to the Parliament of Australia, Chen said that he was in contact with Australian intelligence and was giving them information about alleged Chinese espionage activities. He said at the time that China operated a network of over 1,000 “secret agents and informants” in Australia. Chen distinguished agents and informants from Chinese intelligence officers, most of whom were stationed in Chinese diplomatic facilities.

Chen, who now works as a businessman, disappeared from the public limelight after his defection. But last weekend, he reappeared after a decade of obscurity and gave an interview to ABC, Australia’s national broadcaster. The ABC journalist reminded Chen that in 2005 he had estimated the number of Chinese agents and informants operating in Australia at 1,000, and asked him how many he thought were active today. Chen responded that an increase in the number is certain, given that “China is now the wealthiest government in the world”. That meant, said Chen, that Beijing has the funds that are necessary to maintain “a huge number of spies” in Australia. However, the former diplomat said that most Chinese agents are “casual informants”, not trained spies, and that they are dormant for long periods of time in between operations.

Author: Joseph Fitsanakis | Date: 24 November 2016 | Permalink

Senior anti-corruption official to lead China’s main spy organization

Chen WenqingA senior Chinese official with a leading role in the country’s ongoing anti-corruption crusade has been appointed head of the nation’s spy agency, which has undergone extensive purges in recent years. Chen Wenqing, 56, will be replacing Geng Huichang as Minister of State Security. Geng, 65, will be retiring after nearly a decade at the helm of China’s intelligence and security agency, which is responsible for intelligence collection, counterintelligence and political security. Chen’s appointment was approved on Monday by the Standing Committee of the National People’s Congress. It comes a year after he was appointed as the senior Communist Party representative at the Ministry of State Security.

Chen, a native of China’s southwestern Sichuan province, joined the police force at a young age and rose through the ranks to become the local director of the Ministry of State Security’s local field office. After eight years in that post, he was appointed provincial director of the Central Commission for Discipline Inspection (CCDI), the Communist Party’s agency responsible for combating corruption among Party apparatchiks. In 2012, Chen became the youngest-ever deputy director of the CCDI, working under the commission’s chairman, Wang Qishan. From that post, Chen helped lead a massive anti-corruption campaign that resulted in the purging of over 100 senior Communist Party officials on charges of dishonesty and sleaze. Those purged included several senior officials at Ministry of State Security. Among them was Zhou Yongkang, Secretary of China’s Central Political and Legal Affairs Commission, which oversees the country’s security, intelligence and law enforcement institutions. The crackdown also targeted the deputy director of the Ministry of State Security, Ma Jian, and its once-powerful Beijing director, Liang Ke.

In recent years, several officials from the CCDI, who are seen by many as uncorrupted and incorruptible, have filled the positions of former Ministry of State Security bureaucrats who were fired during the government’s anti-corruption campaign. Chens’ appointment makes him the third senior CCDI official to be appointed to a senior post in the Ministry of State Security. Some experts believe that Chen’s move affirms the growing power of the CCDI, which has been the main implementation vehicle of President Xi Jinping’s ongoing anticorruption campaign that has gripped China since his rise to power in 2012.

Author: Joseph Fitsanakis | Date: 08 November 2016 | Permalink

Holland suspends its ambassador to China due to suspected honey trap

Holland Embassy in ChinaThe Dutch government has suspended its ambassador to China and has launched an official investigation into an alleged secret relationship between the ambassador and a female Chinese employee at the Dutch embassy. The ambassador, Ron Keller, is a career diplomat and senior member of the Dutch foreign service corps, who has served in Russia and Turkey among other international posts. He assumed duties as Holland’s ambassador to China in late 2015. In December of that year, he arrived in Beijing and took command of one of the largest Dutch embassies in the world.

Last weekend, however, Dutch newspaper De Telegraaf reported that Keller had been suspended from his post after it was alleged that he had a secret affair with an employee at the embassy. The employee, whose name has not been released, is reportedly a female Chinese national. Her position at the embassy is not known, but is thought to be of a clerical nature. Foreign diplomats stationed in China —whether married or single— are routinely warned to avoid having intimate relationships with Chinese nationals due to concerns that the latter may be in the service of Chinese intelligence. Some refer to this practice as a ‘honey trap’.  In 2011, Taiwan suffered its most serious espionage case in over half a century when it was revealed that the director of the Taiwanese military’s Office of Communications and Information fell for a “tall, beautiful and chic” Chinese female operative, who held an Australian passport, but later turned out to be a Chinese intelligence officer. In 2014, a leaked British military report warned United Kingdom government officials of attempts by Chinese intelligence services to compromise them using sexual entrapment.

De Telegraaf said it contacted the Dutch Ministry of Foreign Affairs about Keller’s suspension. In a statement, the ministry confirmed the diplomat’s suspension but said that it could not comment on the case. The newspaper reported that Keller is currently back in Holland and that his return to Beijing in an official capacity is not likely.

Author: Joseph Fitsanakis | Date: 19 October 2016 | Permalink

Is Chinese salvage ship searching for flight MH370 spying on Australia?

DONG HAI JIU 101The Chinese embassy in Canberra has strongly denied accusations that a Chinese government ship involved in the international effort to find the missing Malaysia Airlines Flight MH370 is spying on the Royal Australian Navy. The ship, the Dong Hai Jiu 101, is a salvage and rescue vessel built in Shanghai in 2012 and currently sailing under the Chinese flag. In April, the Chinese government contracted the Dong Hai Jiu 101 to join the international search effort for the wreckage of Flight MH370. The Boeing 777 aircraft disappeared over the South China Sea on March 8, 2014, while flying from Kuala Lumpur International Airport in Malaysia, to the Beijing Capital International Airport in China.

Only a few pieces of debris, purportedly belonging to the plane, have been found, despite the most extensive and costly search in aviation history. The coordinated international search began off the coast of Thailand last year and is currently focused on the seabed off the city of Perth in Western Australia. The Dong Hai Jiu 101 has been sailing in the area since April of this year, along with three other search and rescue vessels. Last week, however, The Australian newspaper published interviews with several security experts who expressed the opinion that the Dong Hai Jiu 101 may be collecting intelligence on Australia for the Chinese government. The alleged intelligence collection is probably of maritime nature and probably involves hydrophonic instrumentation to track submarine movements, said the experts.

But the Chinese government responded quickly, issuing a strong denial through its embassy in Canberra. An embassy spokesman reminded The Australian that 154 of 239 passengers and crew on Flight MH370 were Chinese, and therefore Beijing has a “strong obligation” to participate in the international search effort. Additionally, said the statement, the Chinese vessel is sailing off the Australian coast with the consent of the Australian government, and in coordination with the Australian Transport Safety Bureau, using underwater search equipment supplied by an American-based company. The Australian government has not made a statement on the matter.

Author: Ian Allen | Date: 27 September 2016 | Permalink

India expels high-profile Chinese journalists, allegedly for spying

Wu XiangFor the first time in history, India has refused to extend temporary residency visas for three senior Chinese media correspondents, effectively expelling them from the country, allegedly for espionage activities. All three reporters are employees of China’s state-run Xinhua news agency. They include Xinhua’s bureau chief in the Indian capital, New Delhi, Wu Xiang, and the agency’s Mumbai bureau chief, Lu Tang. A third journalist, She Yonggang, also based in Mumbai, has been asked to leave India by no later than July 31.

According to several Indian news media, the decision to refuse visa renewals for the Chinese journalists was taken after Indian intelligence agencies confirmed that the three were engaging in activities that “were incompatible with their journalistic capacity”. The phrase typically refers to espionage and related activities. According to India’s Ministry of External Affairs, the Chinese reporters have been officially asked to leave the country by the end of this month. All three are reportedly reputable experts in Indian affairs. Xinhua’s Mumbai bureau chief, Lu Tang, is typical: a fluent Hindi speaker and Jawaharlal Nehru University graduate, she specializes in Indo-Chinese relations and has written for some of Asia’s most best known publications.

Indian sources have not confirmed that the decision to expel the journalists relates to espionage activities. Government officials insist that the three had let their visas expire four months ago and were staying in India based on temporary fortnightly extensions. The Indian government simply made the decision not to renew the journalists’ already expired visas, they said. When asked about his impending expulsion, Xinhua’s New Delhi bureau chief, Wu Xiang, said he and his two colleagues had not been given a reason for the Indian government’s refusal to extend their visas. Indian officials told reporters that Xinhua would be allowed to replace the three reporters’ posts. The Chinese government has not yet responded to the news of the expulsions. There are reportedly five Indian journalists working in China for Indian news agencies.

Author: Joseph Fitsanakis | Date: 25 July 2016 | Permalink

Death sentence for Chinese computer technician accused of espionage

Chengdu, ChinaA former computer technician who worked on cryptology has been sentenced to death in China after being found guilty in what some describe as one of the country’s most damaging espionage cases in recent years. The man, Huang Yu, is reportedly a 41-year-old computer expert who worked for a government-funded research institute specializing in cryptology —the science of making and breaking secret codes. He was arrested in 2011 in Chengdu, the capital of Sichuan province in southwestern China.

According to state-run broadcaster China Central Television, Huang spied on his country from 2002 to 2011, when he was arrested. During that time, he is believed to have sold 150,000 documents to a foreign intelligence agency, in exchange for $700,000. The documents allegedly included 90 reports that were classified as ‘top-secret’, and contained Chinese military codes. Some commentators have described Huang’s espionage as having caused “one of the largest known leaks [of government secrets] in China in recent years”. However, government prosecutors have refused to release information about the foreign spy agency that Huang is accused of having worked for. In addition to giving Huang a death sentence, the court sentenced his wife to five years in prison, while her brother will spend three years behind bars.

Huang’s death sentence is the first delivered in China for espionage since late 2008, when two Chinese scientists were put to death for spying for Taiwan. Some experts believe that Huang’s case signifies an intensification of efforts by the Chinese government to protect its secrets from foreign espionage. These efforts began in 2014, when Chinese President Xi Jinping enacted new counterespionage legislation featuring harsher penalties for Chinese citizens who work as agents of foreign spy agencies. Earlier this month, the Chinese state marked the country’s first “National Security Education Day”, which included the establishment of a new “counterespionage hotline” designed to accept anonymous tips from citizens about suspected foreign spies.

Author: Joseph Fitsanakis | Date: 20 April 2016 | Permalink

Further arrests in Edward Lin spy case ‘possible’, says US official

Edward LinAn American official has told Newsweek magazine that the possibility of further arrests in the espionage case of United States Navy flight officer Edward Lin should not be ruled out. Last Sunday, the US Navy reported the arrest Lt. Cmdr. Lin, who faces two counts of espionage and three counts of attempted espionage, among other charges. Aside from a three-page, heavily redacted charge sheet released by the Navy, almost nothing is known about this case. However, as intelNews opined earlier this week, there are several clues that point to the seriousness of the charges against Lin, and their potential ramifications for US national security, which are likely to be extensive.

On Thursday, longtime intelligence and security correspondent Jeff Stein wrote in Newsweek magazine that Lin appeared to have “scores of friends in sensitive places” in the US and Taiwan. That is not surprising, given that Lin served as the Congressional Liaison for the Assistant Secretary of the Navy, Financial Management and Comptroller, between 2012 and 2014. A cursory survey of Lin’s LinkedIn page, said Stein, shows endorsements by a senior commander at the US Naval Air Station at Guantanamo, Cuba, as well as the US Pacific Fleet’s senior intelligence analyst on Southeast Asia. Other endorsers include Congressional liaison officers for the US Navy, a Taiwanese military attaché, and a former official in Taiwan’s Ministry of Defense.

It is believed that Lin was arrested over eight months ago, but Stein says the investigation, which is being conducted jointly by the Naval Criminal Investigative Service and the Federal Bureau of Investigation is still underway. He quotes an unnamed “US official who asked for anonymity in exchange for discussing some details of the case” as saying that, given Lin’s extensive contacts in the US intelligence establishment, the possibility of further arrests in the case should not be ruled out. Lin is currently being held in the Naval Consolidated Brig in Chesapeake, Virginia.

Author: Joseph Fitsanakis | Date: 15 April 2016 | Permalink

Analysis: How serious is the Edward Lin spy case?

Edward LinFor the first time since 1985, when the Federal Bureau of Investigation broke the John Walker spy ring, an active United States Navy officer has been charged with espionage. On Sunday, the US Navy reported the arrest Lt. Cmdr. Edward C. Lin, who faces two counts of espionage and three counts of attempted espionage, among other charges. Aside from a three-page, heavily redacted charge sheet released by the US Navy, almost nothing is known about this case. However, there are several clues that point to the seriousness of the charges against Lin, and their potential ramifications for US national security, which are likely to be extensive.

Lin was a signals intelligence (SIGINT) specialist with the Navy, focusing on the airborne collection of maritime intelligence, mostly in the Pacific Ocean. Given that he is a naturalized citizen from Taiwan and speaks fluent Mandarin, it is almost certain that he was tasked with collecting SIGINT from targets in China and Taiwan. If that is so, then the prospect that Lin may have given classified information to Chinese or Taiwanese intelligence officers will be especially unsettling for Washington. Moreover, Lin is believed to have worked with some of the most advanced airborne intelligence-gathering platforms in the Pentagon’s arsenal, including the MQ-4C Triton, the P-3C Orion, the P-8A Poseidon, and the EP-3 Aries II, which is arguably the most advanced maritime surveillance aircraft ever used by the US Navy.

It also appears that Lin had a relatively senior position in the US Navy’s chain of command. He was a departmental head in the Navy’s Patrol and Reconnaissance Group, overseeing the work of over 7,000 sailors. Prior to that post, he served as the Congressional Liaison for the Assistant Secretary of the Navy, Financial Management and Comptroller. Lin’s critical positions in the chain of command may explain why US authorities arrested him nearly eight months ago in absolute secrecy and been holding him in pre-trial confinement without releasing any information to the media until last weekend. This level of secrecy in a national security investigation is rare and possibly points to the extent of damage assessment that needed to be completed following Lin’s arrest. Read more of this post

China and Taiwan swap jailed spies in historic first

Ma Ying-jeou and Xi JinpingChina and Taiwan reportedly swapped each other’s imprisoned spies, just days before a historic meeting between their heads of government. It was the first time in the two nations’ history that they have swapped jailed spies with each other. The exchange appears to have taken place in secret in late October, less than two weeks ahead of a historic November 7 meeting between Chinese President Xi Jinping and Taiwanese President Ma Ying-jeou. The meeting, which took place in Singapore, was hailed for its historic significance, as it was the first of its kind since 1949, when the two countries emerged following a bitter civil war between communist and nationalist forces.

News of the spy exchange emerged in the Taiwanese press on Monday, when it was reported that Taipei had released Li Zhihao. Li, a mysterious Chinese intelligence officer known in spy circles as “the man in black”, had been arrested in 1999 after being lured into Taiwan, and was serving a life sentence. He is believed to be 70 years old. In return, Beijing appears to have freed Chu Kung-hsun and Hsu Chang-kuo, two colonels in Taiwan’s Military Information Bureau, who were arrested by mainland China’s counterintelligence nearly a decade ago. At the time of their arrest, the Taiwanese government protested that the two officers had been kidnapped from the Vietnamese side of the Chinese-Vietnamese border. But Beijing had dismissed Taipei’s protestations and had convicted the two men of espionage.

It is worth pointing out that the two Taiwanese officials had initially been sentenced to death, but their sentences were later commuted to 20 years behind bars. It is believed that they were the last Taiwanese military officials held in China for espionage, and that they were the highest-ranked Taiwanese spies imprisoned in China. Their release, therefore, marks an unprecedented development in Chinese-Taiwanese relations, though it should be remembered that dozens of Taiwanese civilians are held in Chinese jails on espionage charges.

Author: Joseph Fitsanakis | Date: 01 December 2015 | Permalink

Washington to investigate Chinese-owned radio stations in the US

CRI ChinaAuthorities in Washington are preparing to launch an investigation into a dozen radio stations operating in major cities in the United States, which are allegedly owned by a subsidiary of the Chinese government. The investigation appears to have been sparked by a report published by the Reuters news agency on Monday, which claims that the Chinese government is operating a “covert radio network” inside the US, aimed at broadcasting news reports that reflect Chinese views. According to Reuters, the radio stations broadcast in at least a dozen large American cities, including Houston, San Francisco, Boston and Philadelphia.

All stations in question are managed by broadcasting firm G&E Studioa, based in West Covina, California, which is owned by James Su, a Shanghai-born American broadcasting entrepreneur. According to the news agency, G&E Studio controls the vast majority of these stations’ air time, which it fills with entertainment and public-affairs programming produced in its studios in California. However, the Reuters report claimed that G&E Studio is 60% owned by China Radio International (CRI), which is a Chinese state-controlled broadcaster. Founded as Radio Peking in 1941, then renamed to Radio Beijing during the Cold War, CRI is the Chinese equivalent of the Voice of America or the BBC World Service: it is officially affiliated with the Chinese government and reflects its point of view. What is more, said Reuters, some of the programming aired on G&E Studio-managed stations is produced by CRI in Beijing. Consequently, news programming on these stations tends to reflect the Chinese government’s point of view, on subjects such as Taiwan, naval rights in the South China Sea, trade policies and other major topics of the day.

The investigation has been launched by the US Federal Communications Commission (FCC) because American law prohibits representatives of foreign governments, or foreign governments themselves, from owning or managing US broadcast stations. Moreover, individuals or companies seeking to influence American politics or public opinion on behalf of a foreign agency, group or government, must register with the US Department of State. It doesn’t appear that G&E-owned radio stations have done that, said Reuters on Monday. The news agency quoted FCC spokesman Neil Grace, who said that an investigation had been launched into “the foreign ownership issues raised in the stories, including whether the Commission’s statutory foreign ownership rules have been violated”. The Department of State, however, refused to confirm or deny that an investigation into G&E Studios was underway.

Author: Joseph Fitsanakis | Date: 3 November 2015 | Permalink

China announces arrests of Japanese citizens on espionage charges

Liaoning ChinaAuthorities in China announced last week the arrests of two Japanese citizens accused of spying for the national intelligence agency of Japan. According to a spokesman from the Chinese Ministry of Foreign Affairs, the two men were been arrested last May “on suspicion of carrying out espionage activities” for Japan’s Public Security Intelligence Agency. Administered by Japan’s Ministry of Justice, the Public Security Intelligence Agency is tasked with protecting the country’s internal security by collecting intelligence both within and without Japan. The Agency has a long history of organizing human intelligence operations in mainland China.

Following China’s announcement last week, Yoshihide Suga, Japan’s Chief Cabinet Secretary, who serves as the government’s press secretary, denied that the two men had links with Japanese intelligence. But the Tokyo-based Kyodo news agency reported on Saturday that the two men had admitted that they had links with the Public Security Intelligence Agency. Citing unnamed Chinese and Japanese diplomats, Kyodo said the two men were on a mission to collect intelligence about Chinese military facilities, as well as to spy on Chinese military activities in the border regions between China and North Korea. The news agency said that both men were civilians and did not have diplomatic credentials. One of them is believed to be a 51-year-old who travels regularly to China. He was reportedly captured in the vicinity of a military facility in China’s eastern coastal province of Zhejiang. The other man was described by Kyoto as a 55-year-old North Korean defector to Japan; he was detained in the northeast province of Liaoning (photo), near China’s border with North Korea.

Kyoto said it contacted the Public Security Intelligence Agency, but a spokesman said he was not in a position to comment on the arrest of the two alleged spies. This is the third instance of arrests of Japanese spies in China on espionage charges since 2005. In the summer of that year, Beijing expelled two Japanese nationals for allegedly stealing military secrets. Five years later, four Japanese citizens were detained in Shijiazhuang, reportedly for spying on a Chinese military base there. All were released within a year of their capture.

Author: Joseph Fitsanakis | Date: 05 October 2015 | Permalink

CIA pulled officers from Beijing embassy following OPM database hack

Office of Personnel ManagementThe Central Intelligence Agency (CIA) pulled a number of officers from the United States embassy in Chinese capital Beijing, after a massive cyber hacking incident compromised an American federal database containing millions of personnel records. Up to 21 million individual files were stolen in June of this year, when hackers broke into the computer system of the US Office of Personnel Management (OPM), which handles applications for security clearances for agencies of the federal government. The breach gave the unidentified hackers access to the names and sensitive personal records of millions of Americans who have filed applications for security clearances —including intelligence officers.

According to sources in the US government, the records of CIA employees were not included in the compromised OPM database. However, that is precisely the problem, according to The Washington Post. The paper said on Wednesday that the compromised OPM records contain the background checks of employees in the US State Department, including those stationed at US embassies or consulates around the world. It follows that US diplomatic personnel stationed abroad whose names do not appear on the compromised OPM list “could be CIA officers”, according to The Post. The majority of CIA officers stationed abroad work under diplomatic cover; they are attached to an embassy or consulate and enjoy diplomatic protection, which is typically invoked if their official cover is blown. However, they still have to present their credentials and be authorized by their host country before they assume their diplomatic post. The CIA hopes that foreign counterintelligence agencies will not be able to distinguish intelligence personnel from actual diplomats.

Although the US has not officially pointed the finger at a particular country or group as being behind the OPM hack, anonymous sources in Washington have identified China as the culprit. If true, The Post’s claim that the CIA pulled several of its officers from the US embassy in Beijing would add more weight to the view that the Chinese intelligence services were behind the cyber theft. The paper quoted anonymous US officials who said that the CIA’s decision to remove its officers from Beijing was directly related to the OPM hack, and it was meant to safeguard their personal security, as well as to protect CIA programs currently underway in China.

Author: Joseph Fitsanakis | Date: 1 October 2015 | Permalink

Obama delegation switches hotels allegedly due to espionage fears

Waldorf AstoriaThe president of the United States and his delegation will be housed at a different hotel during a United Nations General Assembly meeting later this month, allegedly due to concerns over Chinese espionage activity. Since the late 1940s, the American president and his diplomatic entourage have resided at the Waldorf Astoria for several days in September, while attending the annual UN General Assembly in New York. The luxury hotel, which is located on Park Avenue on the island of Manhattan, has also served since 1947 as the residence of the US ambassador to the UN. That is also why the American delegation is usually hosted there, courtesy of the ambassador. This year, however, President Barack Obama and his sizeable delegation will be staying at the New York Palace Hotel, located at the corner of Manhattan’s 50th Street and Madison Avenue. The announcement was made last week by the White House and the US Department of State.

According to The Associated Press and The New York Times, the decision to relocate the American high-level delegation is primarily due to security concerns. The reports cited well-placed sources in the US government as stating that the relocation was prompted by the sale last year of the Waldorf Astoria to the Chinese firm Anbang Insurance Group. The McLean, VA-headquartered Hilton Worldwide Holdings, Inc., which sold the hotel to the Chinese firm, pocketed nearly $2 billion from the transaction. Based on the terms of the agreement, the American company will continue to operate the Waldorf Astoria until 2114. But Anbang announced last spring that the hotel would be undergoing a massive renovation program, which, according to media reports, has alarmed American counterintelligence officials. The latter are concerned that Chinese intelligence technicians may use the renovation to install eavesdropping equipment in Waldorf Astoria’s rooms and compromise the hotel’s Internet network.

The US diplomatic exit from the Waldorf Astoria was first reported back in mid-June, but was not confirmed by the White House or the Department of State. Since that time, no American cabinet official, including Secretary of State John Kerry and Vice President Joe Biden, has stayed at the Waldorf. But President Obama’s upcoming trip renewed the media’s interest in the change of hotels, and US government officials finally confirmed that the Chinese-owned hotel had been dropped based “on several considerations, including space, costs and security”. A State Department official told reporters last week that the change took “into account changing circumstances”. The Times also reported that the US government is examining whether its ambassador to the UN will continue to be headquartered at the Waldorf.

Author: Joseph Fitsanakis | Date: 14 September 2015 | Permalink

US warns China against use of non-official-cover operatives

Chinese Ministry of State SecurityThe White House has warned the Chinese government to stop deploying on American soil intelligence operatives masquerading as tourists, business executives or other false covers. Nowadays the standard practice for intelligence personnel deployed abroad is to be posted as diplomatic staff in a foreign embassy or consulate. But there are some intelligence officers who do not follow that practice. These are known as non-official-cover operatives, or NOCs in American intelligence parlance. NOCs are typically high-level principal agents or officers of an intelligence agency, who operate without official connection to the diplomatic authorities of the country that is employing them. They typically pose as business executives, students, academics, journalists, or non-profit agency workers. Unlike official-cover officers, who are protected by diplomatic immunity, NOCs have no such protection. If arrested by authorities of their host country, they can be tried and convicted for operating as unregistered agents of a foreign government.

According to The New York Times, a significant number of Chinese NOCs have recently entered the United States as part of the Chinese government’s Operation FOX HUNT. Supervised by China’s Ministry of State Security (MSS), FOX HUNT is aimed at the thousands of former officials and other fugitives from China, who are alleged to have embezzled funds and are now living abroad, usually in considerable wealth. As part of the MSS operation, teams of intelligence agents are said to have been dispatched around the world in order to hunt down these fugitives, many of whom are believed to have embezzled hundreds of millions of dollars in government funds. Chinese media reports claim that nearly 1000 such fugitives have been “repatriated”, either voluntarily or involuntarily, since the launch of FOX HUNT. The tactics used by the Chinese NOCs are not clear, and some suspect that they include direct or indirect threats against the fugitives’ family members in China. Chinese reports have described FOX HUNT operatives as “mostly young, highly skilled”, and accustomed to “rapid-fire deployment” around the world.

The Times said that Washington views the parts of Operation FOX HUNT that take place on US soil as “a departure from the routine practice of secret government intelligence gathering” that both America and China practice against each other. The US, therefore, does not want Chinese officers without official diplomatic credentials, but posing instead as students, tourists or business representatives, engaging in intelligence operations on US soil, said the paper. It added that Washington’s warning had been delivered to Beijing “in recent weeks”. The Times article did not include specific descriptions of FOX RUN activities on American soil.

Author: Joseph Fitsanakis | Date: 17 August 2015 | Permalink