UK report warns about sexual entrapment by foreign spies

UK Ministry of DefenceBy IAN ALLEN | intelNews.org
A leaked report issued by military authorities in the United Kingdom cautions British officials to be aware of attempts by Chinese and Russian intelligence services to compromise them using sexual entrapment. The London-based Sunday Times newspaper said it had acquired a copy of the document, entitled Manual of Security, authored by the United Kingdom’s Ministry of Defence for use by senior officials. The manual warns that foreign intelligence services are known to employ sexual entrapment or romantic attachment as a means of compromising their targets. The document singles out the Russian Federal Security Service (FSB) and the Chinese Ministry of State Security as two adversary agencies that are known to employ sexual entrapment on a regular basis. British officials are warned in the document that the FSB could gain classified information by exploiting “knowledge of marital infidelity or sexual activity the target may wish to hide”. The Times spoke to an unidentified “senior military official”, who told the paper he was recently approached by “a very attractive blonde woman in her early 30s” in a hotel in the Russian city of Saint Petersburg. The woman began telling him of her fascination with vintage British sports cars, which happened to be the British official’s favorite hobby. He eventually terminated the encounter after he became suspicious of the woman’s motives. But he remains puzzled as to how the woman knew details of his personal hobbies. In 2009, the British Foreign Office had to recall its deputy consul-general in the Russian city of Ekaterinberg, after he appeared in an explicit video on YouTube having a sexual encounter with two Russian prostitutes. Many speculated at the time that the video had been posted online by the FSB in an attempt to embarrass the diplomat and have him removed from Russia. Later that year, London’s former deputy mayor, Ian Clement, admitted he was lured by a female Chinese secret agent, who drugged him and ransacked his Beijing hotel room after having sex with him. Clement said he fell for what he called “the oldest trick in the book” while in Beijing to “build contacts with potential investors” for the 2012 Summer Olympics in London. Sir Christopher Meyer, a career diplomat with the Foreign Office, who served in several countries during his career, including the Soviet Union, has written about the case of Sir Geoffrey Harrison, Britain’s ambassador to Moscow from 1965 to 1968. The ambassador, said Sir Christopher, “had to leave [the Soviet capital] in a hurry, having fallen for the charms of his Russian maid –trained and targeted, of course, by the KGB”. Read more of this post

CIA ‘seriously damaged’ China’s overseas spy network, sources say

Ministry of State Security branch office in Hubei Province, ChinaBy JOSEPH FITSANAKIS | intelNews.org |
A high-level Chinese security official, who was arrested earlier this year in China for spying for the United States, compromised several Chinese agents operating on American soil, according to sources. Reuters news agency, which broke the initial story of the Chinese official’s arrest earlier this month, published last week a lengthy update on the spy affair. The article quoted “two sources with direct knowledge on the matter”, who claimed the issue was considered serious enough in Beijing to prompt the personal intervention of Chinese President Hu Jintao. Jintao, who is also General Secretary of the Communist Party of China, personally ordered an investigation into the case, said Reuters. The investigation focused on China’s Ministry of State Security (MSS), China’s primary intelligence agency, where the accused spy was reportedly working at the time of his arrest. Although Chinese media have remained silent on the issue, the arrested official is said to have worked as a senior aide to MSS Vice Minister Lu Zhongwei. The Reuters article alleges that the investigation, which is said to be continuing, has concluded that the aide had been a paid informant of the US Central Intelligence Agency, and that the information he provided to the CIA included “political, economic and strategic intelligence”. But the sources also told Reuters that some of the government secrets that the MSS aide gave the CIA related to China’s network of spies operating on American soil. The latest Reuters article strengthens the widespread view that the latest espionage scandal caused serious damage to China’s espionage network in the US. Some observers now argue that this represents China’s most damaging espionage scandal since 1985, when Yu Qiangsheng, a senior Chinese intelligence official, defected to the United States. Read more of this post

US State Department silent on ‘massive’ China spy revelations

Hillary ClintonBy JOSEPH FITSANAKIS | intelNews.org |
The United States Secretary of State, Hillary Clinton, has declined to comment publicly on the arrest of a senior Chinese government aide, who is said to have conducted “massive” spying for Washington. According to Reuters news agency, who broke the story last week, the aide was arrested several months ago, but both the US and China have chosen to keep the issue under wraps in order “to prevent a fresh crisis in relations” between the two countries. Reuters cited “three sources [with] direct knowledge of the matter”, who said that the aide was employed at a critical post in the office of a vice minister in China’s Ministry of State Security (MSS). The MSS is China’s foremost intelligence agency, with responsibility for both domestic and international intelligence collection. According to the sources quoted by Reuters, the unnamed aide was arrested “sometime between January and March” of 2012 and stands accused of supplying his American handlers with classified information on Chinese espionage activities abroad. According to the report, the accused spy had been working for the US “for several years” and his case could represent the worst breach of China’s MSS in two decades; according to one source, the damage inflicted to the MSS’ operations by this case “has been massive”. Reuters said that the aide, who speaks English, was recruited by the US Central Intelligence Agency, and was paid “hundreds of thousands of US dollars” to provide “political, economic and strategic intelligence” to American intelligence officers. Read more of this post

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.

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

Leaked MI5 report sees China as ‘most significant’ spy threat

By JOSEPH FITSANAKIS | intelNews.org |
A restricted MI5 report describes China as Britain’s most serious espionage threat, and says British business executives are increasingly targeted by Chinese intelligence operatives. The 14-page document was authored by the Centre for the Protection of National Infrastructure, a unit of MI5, Britain’s primary counterintelligence and security agency. In it, the intelligence agencies of the Chinese People’s Liberation Army, as well as the Ministry of State Security, are identified as leaders in a massive targeting of British corporate executives who regularly make business trips to China. The report warns that most of the hotel rooms where they stay are “likely to be bugged”, that they are regularly “searched while the occupants are out of the[ir] room[s]”, and that hotels are frequented by Chinese female intelligence agents, looking “to exploit vulnerabilities such as sexual relationships and illegal activities”. Read more of this post

London ex-official admits falling for Chinese honey trap

Ian Clement

Ian Clement

By JOSEPH FITSANAKIS | intelNews.org |
London’s former deputy mayor, Ian Clement, has admitted he was lured by a female Chinese secret agent, who drugged him and ransacked his Beijing hotel room after having sex with him. Clement said he fell for “the oldest trick in the book”, euphemistically known as ‘honey trap’ in intelligence circles, while accompanying UK Olympics Minister Tessa Jowell to Beijing to “build contacts with potential investors” for the 2012 Summer Olympics in London. He said he became acquainted with an attractive Chinese woman at the exclusive official party on the opening night of the 2008 Summer Olympics in Beijing, and had a few drinks with her. He then invited her to his hotel room, where he eventually became unconscious. Upon waking up, several hours later, he found that “the woman had rifled through confidential documents and downloaded details about how the capital is run from his BlackBerry Smartphone”. Read more of this post