MI5 official’s diaries reveal tensions between UK, US spy agencies

October 26, 2012 by 3 Comments

Guy LiddellBy JOSEPH FITSANAKIS | intelNews.org |
Newly declassified personal diaries belonging to a senior British intelligence official reveal tensions between British and American spy agencies in the years immediately following World War II. The National Archives, an executive agency operating under the United Kingdom’s Secretary of State for Justice, released the diaries on Friday. They belong to Guy Maynard Liddell, a longtime British intelligence operative who rose to the post of Deputy Director General of MI5, Britain’s domestic intelligence agency. Liddell meticulously kept a diary during most of the 1940s and 1950s, in which he detailed both personal information and details of his work at MI5. Two volumes of his diaries (from 1939 to 1945, edited by Nigel West) have already been published. Now a third installment has been declassified by the National Archives, containing Liddell’s diary entries from the late 1940s and 1950s. The diaries project what some intelligence historians describe as “a certain friction” between postwar British and American intelligence services. Even though the two countries were largely viewed as allies in the immediate postwar period, their respective intelligence agencies did not always see eye to eye. In one instance, Liddell describes his American colleagues as “utterly incapable […] of seeing anybody’s point of view except their own” and accuses them of being “quite ready to cut off their noses to spite their faces”. He also comes across as skeptical of the then-newly established Central Intelligence Agency, which, he writes, “someday” may be able to produce information that would be “worth disseminating, evaluating, or coordinating”. In 1947, shortly after the CIA’s founding, Liddell wrote with a degree of uncertainty that “in the course of time, [the Agency] may produce something of value”. Further on he relayed the opinion of CIA Deputy Director Edwin Kennedy Wright, who apparently told British intelligence officials that in American intelligence organizations “500 people were employed to do what 50 people would do” in the UK. Read more of this post

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News you may have missed #804

October 25, 2012 by 1 Comment

Jeffrey Paul DelisleBy IAN ALLEN | intelNews.org |
►►CIA officer reportedly among dead in Afghanistan bombing. The attack, which was carried out in a remote area of Kandahar Province, occurred when a guard working for the Afghan intelligence service detonated a suicide vest as a delegation of American coalition members and Afghan intelligence officials arrived at the intelligence office in the Maruf District. The blast killed Ghulam Rasool, the deputy intelligence director for Kandahar Province, two of his bodyguards, another Afghan intelligence official, and some Americans, including the CIA officer. A spokeswoman for the CIA declined to comment.
►►Canadian intel officer was ‘on Russian payroll for years’. Former navy intelligence officer Jeffrey Paul Delisle, who pleaded guilty this month to spying, was leaking secrets to Russia, sending classified data about Canada as well as the United States, according to David Jacobson, the US ambassador in Ottawa. So far, the Canadian government has refrained from revealing the identity of “the foreign entity” to whom Delisle passed the classified information. Ambassador Jacobson refused to specify the nature of the information, saying only that “there was a lot of highly classified material”.
►►Panama wants to adopt euro as legal tender. Panama, one of the fastest growing economies in Latin America, wants to adopt the euro as legal tender to run alongside the country’s US dollar economy. Panama’s President Ricardo Martinelli made the request to German Chancellor Angela Merkel during a visit to Europe. The president indicated he had every faith that the crisis in the eurozone would soon be at an end, adding that Panama “would be possibly the only country in the world to have two currencies, the euro and the dollar”.

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France pressing for Western military intervention in Mali, claim sources

October 23, 2012 by 6 Comments

Mali and the Independent State of AzawadBy JOSEPH FITSANAKIS | intelNews.org |
The government of France is holding secret talks with American and other Western officials to explore options for a concerted military intervention in Mali, according to diplomatic sources. A Tuareg rebellion in the northern part of Mali, which began earlier this year, culminated in the unilateral declaration of the Independent State of Azawad. The new state, which borders Algeria, Mauritania, Niger and Burkina Faso, is controlled by the National Movement for the Liberation of Azawad (NMLA). The NMLA is partially staffed by former members of the Libyan Army during the rule of Colonel Muammar al-Gaddafi. But it is also said to incorporate armed members of Ansar Dine, the Movement for Unity and Jihad in West Africa (MUJAO) and Al-Qaeda in the Islamic Maghreb (AQIM), all of which claim to have links with al-Qaeda. Many French observers view the Independent State of Azawad as the African version of mid-1990s Afghanistan, which eventually served as the base for Osama bin Laden’s al-Qaeda. But even though the French government has come out in favor of armed intervention in northern Mali, it has denied persistent rumors that it is contemplating sending French troops in the West African country. Instead, Paris officially favors intervention by the Malian Army backed by African Union troops and using logistical support provided by the Economic Community of West African States (ECOWAS). However, in an article published yesterday, The Associated Press claimed that, behind the scenes, the French government is trying to convince the US and other Western countries to participate in a military intervention in Mali. Read more of this post

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News you may have missed #803

October 19, 2012 by 2 Comments

Shakil AfridiBy IAN ALLEN | intelNews.org |
►►Phone seized from Pakistani doctor who helped CIA find bin Laden. Pakistani authorities have seized a Thoraya satellite phone from jailed doctor Shakil Afridi, who helped the CIA trace Osama bin Laden, and also arrested four police commandos guarding his cell. After interrogation, one of the four arrested commandos confessed that he had provided the satellite phone to Afridi. The doctor had reportedly made more than 68 calls from the satellite phone set and most of these calls were long-distance, but the authorities are assessing the satellite phone data to ascertain the country location.
►►US whistleblower protections extended to intelligence community. US President Barack Obama has extended whistleblower protections to national security and intelligence employees. A new Presidential policy directive says employees “who are eligible for access to classified information can effectively report waste, fraud, and abuse while protecting classified national security information. It prohibits retaliation against employees for reporting waste, fraud, and abuse”. The President has also instructed agencies, including the CIA, to establish a review process, within 270 days, that allows employees to appeal actions in conflict with the directive that affect their access to classified information. It is worth noting that the Obama administration has been criticized by open-government advocates for aggressively prosecuting self-described whistleblowers.
►►What do CIA spies do after retirement? What do former spies do when they quit the spy game? Plan covert action campaigns against the nasty old ladies in their homeowners’ association? Overthrow their city council for fun? No, the majority of former CIA case officers work as consultants or contractors within the US intelligence community. However, while returning to work as intelligence consultant is the norm, some few do forge a different path, applying lessons learned from government service to a new life in the private sector.

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White House review ‘found no evidence’ of Huawei spying for China

October 18, 2012 by 2 Comments

Huawei TechnologiesBy JOSEPH FITSANAKIS | intelNews.org |
A review commissioned by the government of the United States has reportedly found no evidence that Chinese telecommunications hardware manufacturer Huawei Technologies spied for the Chinese government. The 18-month-long review, which was ordered directly by the White House, examined the question of security vulnerabilities posed by telecommunications hardware suppliers, which could theoretically harm US service providers and pose a danger to US national security. The report, which was allegedly aided by several US intelligence agencies and other federal government departments, was based on detailed interviews with nearly 1,000 telecommunications equipment consumers across the United States. It was concluded at the start of 2012, but remains largely classified. However, Reuters news agency cites “two people familiar with the probe”, who claim that the probe contains “no clear evidence” that Huawei spied for the government of China. At the same time, however, the probe concluded that Huawei telecommunications hardware contains numerous structural vulnerabilities which could help hackers exploit telecommunications networks supported by the Chinese company. According to one source quoted by Reuters, the White House report found that the telecommunications hardware sold by Huawei was “riddled with holes”. Read more of this post

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Canadian diplomats spied for the CIA in Cuba, claims new book

October 16, 2012 by 2 Comments

Embassy of Canada in Havana, CubaBy JOSEPH FITSANAKIS | intelNews.org |
Several accredited Canadian diplomats were recruited by the United States Central Intelligence Agency to spy on Cuba in the aftermath of the 1962 missile crisis, according to a new book. Authored by Canadian retired diplomat John Graham, the book, entitled Whose Man in Havana? Adventures from the Far Side of Diplomacy, is to be published this week by Penumbra Press. In it, Graham claims that he was among a number of Canadian diplomats stationed in Cuba, who were secretly recruited by the CIA. The US agency had been essentially forced out of the island after Washington and Havana terminated diplomatic relations in 1961, soon after the government of Fidel Castro declared itself a proponent of Marxism. The closure of the US embassy meant that the CIA had no base from which to operate in the Caribbean island. Two years later, in May 1963, US President John F. Kennedy personally asked Canadian Prime Minister Lester Pearson for assistance in intelligence-gathering efforts in Cuba. The Canadian leader consented and, according to Graham, Canadian diplomatic officials actively assisted the CIA until at least 1970. The author states in his book that he himself operated in Cuba for two years, from 1962 until 1964, under the official cover of Political Officer at the Canadian embassy in Havana. Prior to that, he says, he was provided with rudimentary training by the CIA, which consisted of spending “just a few days” at the Agency’s headquarters in Langley, VA. He was then tasked with conducting physical surveillance of Soviet military bases on Cuba and, if possible, identifying weapons and electronic security measures, and noting troop movements. Read more of this post

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Danish Muslim convert claims he was CIA’s mole inside al-Qaeda

October 12, 2012 by 8 Comments

Morten StormBy JOSEPH FITSANAKIS | intelNews.org |
A Danish citizen who converted to Islam in the early 2000s claims he was a spy for the United States Central Intelligence Agency and helped track down an American-born Islamist cleric who was killed by a drone strike in 2010. The man, who goes by the name Morten Storm, told Danish newspaper Jyllands-Posten that he converted to Islam while living in the United Kingdom. But he quickly grew disillusioned, he said, and in 2006 he was recruited by the Danish Police Intelligence Service (PET). In subsequent years, he traveled several times to Yemen on PET missions, and gradually managed to gain the trust of members of the al-Qaeda in the Arabian Peninsula (AQAP). Eventually, he said, he grew close to one of AQAP’s central figures, the American-born Yemeni cleric Anwar al-Awlaki. At that point, claims Storm, the PET turned him over to the CIA, who allegedly used him to gather information on al-Awlaki. The Danish Muslim convert claims that his role as a CIA informant was so important that US President Barack Obama knows his name. He also told the paper that it was his information that eventually helped the CIA track and assassinate the charismatic cleric. According to Storm, the CIA supplied him with a memory stick that contained a stealth Global Positioning System tracking device. He sent the memory stick to al-Awlaki, who used it on his computer, thus allowing the CIA to track him down. In April 2010, President Obama ordered that al-Awlaki’s name be included on a list of individuals that the CIA was officially authorized to kill. Little less than a year later, on September 30, 2011, the cleric and three other suspected members of AQAP were killed when their car was hit by two Hellfire missiles in Yemen’s northern al-Jawf province. Read more of this post

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Former CIA senior analyst argues in favor of US deal with Iran

October 9, 2012 by 7 Comments

Paul R. PillarBy JOSEPH FITSANAKIS | intelNews.org |
A former senior analyst in the United States Central Intelligence Agency has come out in support of a bilateral compromise between Iran and the West on Tehran’s nuclear program. In an article published last week, Georgetown University professor Paul R. Pillar, who spent nearly three decades with the CIA, dismissed the widespread view that the differences between Iran, Israel, and the West are insurmountable. Commenting on news of a nine-step negotiation plan offered by Tehran in early October, but dismissed by Washington as “unworkable”, Pillar said the offer provided the initial steps of an “eminently achievable agreement” between the interested parties. The CIA veteran, who rose to be one of the Agency’s top analysts prior to his retirement in 2005, argued that a possible outcome of bilateral negotiations would be for Iran to curtail its enrichment of uranium to the 20 percent level in exchange for the lifting of most economic sanctions imposed on Iran by Western countries. “An agreement along these lines makes sense”, he added, “because it would meet the major concerns of each side” in the dispute. He cautioned, however, that, under such an agreement, Tehran would not only be prohibited from continuing its uranium enrichment process, but would also be required to surrender all quantities of uranium previously enriched to a level above 20 percent. Such an agreement, claimed Pillar, would mean that neither Iran nor Israel and the West would receive everything they wanted at once. Instead, the process would depend on a gradual implementation of several bilateral agreements in stages, “each side giving something and getting something at each stage”. Read more of this post

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News you may have missed #800

October 8, 2012 by Leave a comment

MI6 headquartersBy IAN ALLEN | intelNews.org |
►►British MI6 spy agency feeling shaken not stirred. Analysis on Salon.com about the current state of MI6, Britain’s external intelligence agency, featuring comments by intelNews‘ own Joseph Fitsanakis. The article, written by former CNN and BBC correspondent Barry Neild, argues that MI6 is feeling the heat caused by a series of recent allegations which threaten to disrupt its clandestine operations. The agency, he suggests, is thus undergoing one of the most troubling periods of its hundred-year existence.
►►Germany charges couple with spying for Russia. German government prosecutors say the couple, who called themselves Andreas and Heidrun Anschlag, worked in Germany for Russia’s foreign intelligence service for more than 20 years, gathering information on European Union and NATO strategy. The pair entered Germany in 1988 and 1990, claiming to be Austrian citizens of South American origin. They were arrested in October 2011. German media said it is the first such case in Germany since the end of the Cold War.
►►US allegedly widens covert operations in North Africa. The Associated Press quotes “three US counterterror[ism] officials and a former intelligence official” as saying that the United States is in the process of building “a new military task force” in the North African region. But by the time the US consulate in the east Libyan city of Benghazi was attacked last month, the new task force consisted only of “liaison officers who were assigned to establish relationships with local governments and US officials in the region”.

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Moscow denies knowledge of alleged Russian spy ring busted in Texas

October 5, 2012 by 4 Comments

Alexander FishenkoBy JOSEPH FITSANAKIS | intelNews.org |
Government officials in Moscow have denied knowledge of an alleged Russian spy ring, which is accused by United States authorities of procuring sensitive microelectronics technology on behalf of the Russian military. Early on Wednesday morning, the Federal Bureau of Investigation conducted pre-dawn raids at several locations in Houston, Texas, and arrested eight members of the alleged spy ring. Four of the arrestees are allegedly Russian citizens, while the remaining five are from Kazakhstan, Azerbaijan and Ukraine. Four are naturalized American citizens. They include Alexander Fishenko, chief executive officer of Apex System LLC, which is accused by the FBI of having exported over $50 million in dual-use microelectronic devices to Russia since 2008. US federal prosecutors allege that three more spy-ring members are currently in Moscow; they include Yuri Savin, Director of Marketing at a company called Artrilor, which is said to have been at the receiving end of Apex System’s export operations. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. The FBI says it has in its possession extensive audio intercepts of the suspects communicating with Russian intelligence, as well as conferring among them about how to hide incriminating documents from US federal authorities. But Sergei Ryabkov, Russia’s Deputy Minister of Foreign Affairs, told Russian reporters on Thursday that the charges against the 11 individuals were “of a criminal nature” and had “nothing to do with intelligence activity”. Read more of this post

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FBI raids alleged Russian front-company, indicts 11 on spy charges

October 4, 2012 by 2 Comments

Russian Ministry of DefenseBy JOSEPH FITSANAKIS | intelNews.org |
The United States has indicted employees of an alleged Russian front-company in Texas, accused of procuring sensitive microelectronics technology for use by Russian military and intelligence agencies. Public prosecutors in New York said yesterday that the Federal Bureau of Investigation conducted raids in locations around Houston, Texas, which included the headquarters of Arc Electronics, Inc. The export firm is accused of having shipped over $50 million-worth of military-grade microelectronics since 2008. The supplies were received in Moscow, Russia, by a mysterious procurement company called Apex System LLC. Counterintelligence investigators in the US claim both firms are part of an elaborate scheme set up by Russian military intelligence, aimed at stealing dual-use electronics hardware created by American firms. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. Federal prosecutors said that, for over four years, Arc Electronics engaged in a prolonged “surreptitious and systematic” scheme to circumvent US government export controls, thus seriously damaging US national security. Following the early-morning raids, the FBI unsealed indictments against 11 Arc Electronics employees, most of whom were charged with “acting as unregistered agents of the Russian Federation in the United States” —legal jargon for espionage. Read more of this post

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News you may have missed #799

October 3, 2012 by Leave a comment

Russell TiceBy IAN ALLEN | intelNews.org |
►►Is NSA using UK spy base to guide predator drones? Surrounded by farmland and sheep, hundreds of National Security Agency staff go to work every day at RAF Menwith Hill, where they eavesdrop on communications intercepted by satellite dishes contained in about 30 huge golf ball-like domes. Menwith Hill has been used by the NSA since the 1960s; but lately there is growing disquiet in Britain over whether intelligence gathered at the base is being used to help with the CIA’s controversial clandestine drone strikes. And the British government is keeping mum.
►►Aussie envoy seduced by spy feared her phone was bugged. Former senior Austrade commissioner to Hanoi Elizabeth Masamune, who recently admitted before an Australian court that she had sexual relations with a Vietnamese intelligence officer, told police she feared her Hanoi offices were bugged. In her statement during the trial of eight former Reserve Bank company executives on bribery charges, she said that after receiving a call from a journalist she recalled “being concerned of the level of information which she had. I was also more concerned about whether my phone was being monitored”, she said.
►►NSA whistleblower describes beating polygraph test. Russell Tice, the National Security Agency whistleblower who helped blow the lid open on warrantless wiretapping conducted by the federal government on US citizens post-9/11, says that he took between 12 and 15 polygraph tests during his nearly 20-year-long government career. The tests mellowed over time, Tice says, and they may have also gotten easier to beat. Tice, who is no longer at the NSA, says he, along with those still in contact with at the agency, marvel at how easy it is to beat the lie detector.

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Russian court upholds 15-year prison sentence for alleged CIA spy

October 1, 2012 by Leave a comment

Igor SutyaginBy JOSEPH FITSANAKIS | intelNews.org |
Russia’s highest court has upheld a lengthy prison sentence given to a Russian arms control and nuclear weapons expert, who Moscow alleges was a spy for the United States. The Russian government accuses Igor Sutyagin of collaborating with Alternative Futures, a British-registered consulting company alleged by Moscow to be a front for the United States Central Intelligence Agency. Before his 1999 arrest, Sutyagin was Division Chairman on the Russian Academy of Sciences’ USA and Canada Institute. His indictment, prepared by the Russian Federal Security Service, said that he shared with the CIA “classified technical information” about nuclear submarine technology. Sutyagin maintained his innocence throughout his trial, and Human Rights Watch as well as Amnesty International classified him as a political prisoner. The two groups brought the accused spy’s case before the European Court of Human Rights, which ruled that Russian government prosecutors had violated Sutyagin’s right to a fair trial. Moreover, the Court ruled that Sutyagin’s pre-trial detention, which lasted five years, was illegal. Eventually, Moscow complied with the Court’s ruling and a retrial was ordered, to the delight of Sutyagin’s family. In the retrial, which ended last week, Russia’s Supreme Court agreed with the European Court of Human Rights that Sutyagin’s pre-trial detention had been unlawful; but the court upheld Sutyagin’s 15-yeard sentenced as “entirely legitimate”. Sutyagin was tried in absentia, however, because in the summer of 2010 he was released and fled to the West, as part of the largest postwar spy-exchange between Russia and United States. Sutyagin was one of four men behind bars in Russia, who were swapped for 10 Russian non-official-cover intelligence operatives that had been arrested in a sting operation by the Federal Bureau of Investigation. Read more of this post

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Decision to evacuate eastern Libya divides US Intelligence Community

September 27, 2012 by 9 Comments

US consulate in Benghazi, LibyaBy JOSEPH FITSANAKIS | intelNews.org |
On September 12, just hours after heavily armed militia groups stormed the United States consulate in Benghazi, Libya, Washington made the decision to pull out its diplomats and intelligence officers from Eastern Libya. As US government envoys, spies and contractors started arriving at the Benina International Airport in Benghazi, many Libyans noted the “surprisingly large number” of Americans that came out of the woodwork. According to reports, at least a dozen of the American evacuees were in fact Central Intelligence Agency personnel. Their evacuation, which has essentially ended the presence of the CIA in eastern Libya’s most important city, is dividing the US Intelligence Community. On the one hand, some US intelligence insiders argue that the attack on the US consulate, which killed four US personnel, including Ambassador J. Christopher Stevens, necessitated the decision to evacuate. A number of former US government officials told The Los Angeles Times this week that the evacuation was “justified, given the dangers in Benghazi” for US personnel. Another current official told The New York Times that the evacuation of the CIA station in Benghazi does not necessarily mean that the US has lost its intelligence collection capabilities in eastern Libya. Washington can still intercept telephone calls and emails and conduct satellite reconnaissance in the North African region, said the official. Others, however, leveled sharp criticism against the decision of the White House to evacuate its diplomats and spies from Benghazi, arguing that the move marked “a major setback in [US] intelligence-gathering efforts” in the country. Robert Baer, a retired CIA officer with decades of experience in the Middle East, called the move “disastrous for US intelligence-gathering capabilities”. Writing in Time magazine, Baer said that shutting down the CIA station in Benghazi would make it “almost impossible to collect good human intelligence” in the region, and described the move as a sign of “America’s declining position” there. Read more of this post

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News you may have missed #798

September 26, 2012 by 7 Comments

Alexander LitvinenkoBy IAN ALLEN | intelNews.org |
►►Britain to hold inquest over death of ex-KGB officer. Britain and Russia appear to be on a collision course over the death of Alexander Litvinenko, a former Russian intelligence officer who died in 2006 after ingesting polonium-210, a rare radioactive isotope. Britain’s Crown Prosecution Service has accused Andrei Lugovoi and Dmitry Kovtun, both former KGB agents, for the death of Litvinenko. Russia has refused British requests to extradite the two, leading to a row with Moscow and the tit-for-tat expulsion of Russian and British diplomats. Until now, the British Foreign Office had attempted to limit the scope of an inquest into the death of Litvinenko, fearing further diplomatic fallout. But coroner Sir Robert Owen said last week that he endorsed a previous ruling by his predecessor in the case, Andrew Reid, that there should be an “open and fearless” investigation into the matter.
►►Ex-CIA operative who illegally sold arms to Libya dies. Edwin P. Wilson, a former CIA officer who was convicted in 1983 for illegally shipping 20 tons of C4 plastc explosives to Libya, has died aged 84. In his trial he claimed he had shipped the weapons to Libya at the request of the CIA, because, as he said, the agency was trying to establish good relations with the Libyan government. But the court did not buy his story, so he spent over 20 years in prison, mostly in solitary confinement, until his release in 2004. He maintained his innocence to the very end.
►►Analysis: Libya an opportunity for CIA if it sticks around. The attack in Benghazi, Libya, that killed four Americans, including a US ambassador and two former Navy SEALs, has led Americans to vacate Benghazi for their safety, even though various militant groups continue their operations. It is a disaster for US intelligence efforts in the region, especially since the attack has made brutally clear how real the jihadi threat in eastern Libya remains. But there may be the smallest of silver linings to this black cloud, if American operatives are able to capitalize on it. The aftermath of the attack shows widespread displeasure with Benghazi’s jihadist groups, with thousands marching in protest. That is an opportunity the CIA could use to rebuild its intelligence gathering.

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