DOWNSIDE LEGACY AT TWO DEGREES OF PRESIDENT CLINTON
SECTION: STATUS OF US INTELLIGENCE
SUBSECTION: UNDERMANNED, UNSUPPORTED
Revised 1/8/01

 

UNDERMANNED AND UNSUPPORTED

Intelligence officers have been forced to retire (or resign) by the Clinton Administration for operations which took place during the Reagan presidency. In no instance were these operations "outside the bounds"; all complied with US laws and statutes (and still do). This Administration, through budget changes, has reduced to a trickle the amount of "hard intelligence" being produced (good intelligence costs, whether the intelligence is garnered through human assets or "technology"). The ever-shrinking budget has forced the closing down of offices throughout the world, many of which provided extremely useful "pieces" to a much larger puzzle. The mainstream media has sided with Clinton in deriding the IC for their "failure" to warn the Administration regarding India's nuclear weapons testing. To the contrary, Clinton was warned well in advance - it is true that the specific office which was watching for the tests didn't catch the first one until it had already happened. This office used to work 24 hours a day 365 days a year; but due to the Administration's budget cuts (and subsequent reduction in personnel) this office hasn't been working this schedule for the last four years. Mainstream media has neglected to mention that particular fact. All of the IC the FR source has served with have been men (and some women) of honor and integrity; all take the Constitution and the security of the US very, very seriously.

In a closed door session with the Senate Intelligence committee, CIA director George Tenet was "enraged" by the White House's contention that the agency failed to pick up signs India was readying nuclear tests. Tenet defended the CIA and blamed the White House, saying "We were simply ignored." According to a former U.S. military and intelligence official, Indian Prime Minister Atal Bihari Vajpayee in the weeks leading up to the first test sent a letter to the White House outlining plans to conduct nuclear tests in the near future. In spring 1997, CIA operatives detected preparations for a nuclear test in India and presented the White House NSC staff with evidence. The NSC staff in turn confronted the Indian government with the raw intelligence data. "The Indians saw what the U.S. had, were able to figure out how we got the material, and then were able to map out procedures so that future test preparations were better concealed . The White House basically handed them a blueprint of how to pull off a successful test." The White House has also provided Russia and China with intelligence material they were able to use to their advantage in blunting further U.S. intelligence gathering.

Peter Leitner, 12 year veteran of to Defense Technology Security Administration DTSA, said the largest blow to DTSA will come in October, when the agency is scheduled to be transferred from the Pentagon's prestigious policy division to a new office controlled by DTSA's detractors, military acquisition officials who favor foreign sales as a way to help American contractors and control costs. The Clinton administration has "neutered" DTSA's 140 employees through a variety of means, Leitner said: by naming Pentagon leaders who disagree with DTSA's central mission, by giving DTSA analysts only minutes or hours to decipher the complexities of the 21,000 proposed high-tech transfers it reviews each year, by reducing DTSA's dealings with intelligence agencies knowledgeable about foreign adversaries and by establishing interagency procedures skewed toward sale of U.S. technology.

BBC 9/5/98 "The United States has conceded that the rocket launched by North Korea on Monday could have put a satellite in orbit - and may not have been a test of a new ballistic missile. An American intelligence official was quoted as saying that Washington was still analysing data, but the possibility that it was a genuine satellite launch could not be ruled out. In Moscow, Itar-Tass news agency said Russian space monitors confirmed that the North Koreans had successfully put up a satellite. It was said to be circling the earth every two hours and 45 minutes in a high, elliptical orbit.."

AP John Diamond 9/16/98 "The CIA is pumping money and people into recruiting efforts to battle a trend that the agency's departing inspector general says has sapped the clandestine service of its most experienced hands. Agency officials outlined Tuesday initiatives that CIA Director George Tenet announced internally last month to increase pay, provide hiring bonuses and shorten the waiting time for job offers..The program is intended to combat a problem outlined in an op-ed article by outgoing CIA Inspector General Fred Hitz who said the CIA's Directorate of Operations, the clandestine spy service, is losing its best people amid organizational drift and declining morale.."

9/24/98 AP John Diamond "North Korea surprised the United States by launching a three-stage rocket and, with lighter payloads, could be on the way to developing an intercontinental-range weapon, U.S. intelligence officials are telling lawmakers. In a classified briefing Wednesday on Capitol Hill, the nation's top military and civilian intelligence officials told members of the Senate Armed Services Committee that they were closely examining the system launched by Pyongyang and studying whether lighter payloads might extend its range enough to reach the United States. ``The fact that they had a third-stage capability was not predicted by the intelligence community, and they are doing a reassessment,'' Sen. Chuck Robb, D-Va., said after a classified briefing by CIA Director George Tenet and Army Lt. Gen. Patrick Hughes, head of the Defense Intelligence Agency.."

The Electronic Telegraph UK 9/24/98 Ambrose Evans-Pritchard "America's impeachment crisis could have dangerous consequences , inviting fresh trouble at a time when world affairs are already in acute distress , says the former director of the CIA. Hostile states such as Iraq were likely to "discount the United States heavily " as a force in the world , says James Woolsey . He believes paralysis in Washington will prevent the US government from responding to provocations. In an interview with The Telegraph , Mr Woolsey gave a caustic assessment of the President he served until his abrupt resignation in January 1995 . Dismissing Bill Clinton as a "tactician" , he said the foreign policy of the administration was driven by opinion polls , short -term PR calculations and the spin-cycle rythmn of an election campaign. "If you want to know how they make decisions , all you need do is watch the War Room , " he said , referring to the documentary of Mr Clinton's 1992 presidential campaign. During his two years as Director of Central Intelligence , Mr Woolsey managed to secure only two conversations with Mr Clinton. "It wasn't that I had a bad relationship with him . I just didn't have any relationship ," said Mr Woolsey. He believes the damage to the American national interest has been substantial , though largely hidden from view. Mr Woolsey compared the global scene to the late 1920's when inchoate foreign threats were ignored , played down , and ultimately allowed to escalate.."

AP 10/7/98 John Diamond "White House procedures for protecting highly secret information are often lax, congressional auditors said Wednesday. Security clearances are granted before completion of background checks, they said, and failing in some cases to order adequate CIA investigations. The White House vigorously disputed the findings published in a General Accounting Office report requested by two Republican House members.. The GAO said that from 1993 to 1996 no White House-wide procedures existed for controlling access to highly classified information, including ``sensitive compartmented information'' so sensitive its handling is governed by rules set by the director of central intelligence. Lack of universal White House procedures for protecting such information extended to several agencies, among them the vice president's office; the National Security Council; the president's Foreign Intelligence Advisory Board; and the offices of Science and Technology Policy, National Drug Control Policy and the U.S. Trade Representative, the GAO said. At least the vice president's office and the NSC, however, had their own strict procedures, it said. The White House issued draft security procedures for access to sensitive compartmented information in June 1996 but not made final until last March. These guidelines, the GAO found, lacked rules for working with the CIA on controlling access to the most sensitive information.."

AP 10/14/98 John Diamond ".The Energy Department and Pentagon discovered sensitive nuclear weapons information in boxes of Cold War-era materials that were about to be publicly released at President Clinton's orders. The discoveries sparked a hasty scramble by Congress to block the release of information that energy officials warned would advance the capabilities of emerging nuclear states such as Pakistan and India.. White House officials were alerted to the problem this summer in a letter from Kenneth Baker, a senior official in the Energy Department's Office of Nonproliferation and National Security. The letter concerned the discovery of pages marked ``Restricted Data'' or ``Formerly Restricted Data,'' in boxes of 25-year-old classified documents slated for release without review.. Clinton's executive order, which requires automatic declassification by the year 2000 of documents more than 25 years old, includes an exception for restricted data. But the order contains no provision to search every document in every box -- a task involving billions of pages and as many as 67 different agencies -- looking for the sensitive material. ``This problem poses a great national security risk'' because it involves the potential release of ``the nation's most sensitive secrets,'' Baker wrote."

Freeper Report ".You ask what coverup historians discovered; how about one which we _didn't_ know about, but which came back to embarrass the U.S. In 1994, Clinton and the State Department asked William C. Doherty, jr., to become the Ambassador to Guyana. At the time, Doherty was executive director of the American Institute for Free Labor Development. The United States then asked Guyana to accept, with its compliments, Mr. Doherty as the U.S. Ambassador. Cheddi Jagan, the President of Guyana, did a highly unusual thing (in the diplomatic world) and rejected Doherty. The reason: Doherty had once tried to overthrow Jagan as part of a CIA-orchestrated coup. Scrambling, the Clinton Administration and the CIA tried to figure out what the hell had happened. It turned out Jagan had been prime minister 1961, had been considered socialist, and had been targeted for overthrow by the U.S. The plot failed, and became public knowledge in Guyana. Having discovered all of this interesting diplomatic history, the CIA and the State Department promptly classified its report...despite the fact that everyone in South America knew who Doherty was and that the CIA had tried this stunt in the 60s. Such a classification, of an event everybody knew about, which occurred over 30 years ago, had no basis for being kept secret. U.S. law at the time required all documentation over 30 years old to be released to the archives, as long as it did not threaten national security. The point here is that most of us don't give a damn about what the CIA did 35 years ago, and disclosing its documents will hurt nobody. Yet they refused to turn them over to the National Archives.."

London Telegraph 10/22/98 David Sapted "BILLIONS of dollars worth of United States air defence systems around the world - including those in Patriot missiles and unmanned Predator spy planes - are useless because they operate on the same frequency as local telephones. In a catalogue of disasters listed in an internal Department of Defence review, the United States military is accused of installing about 90 systems in Europe, the Middle East and Asia without bothering to check if they could be used in conjunction with local telephone services..

The New York Times AP 11/11/98 ".The director of the Central Intelligence Agency threatened to quit if President Clinton agreed to release convicted spy Jonathan Pollard as part of the Middle East peace accord, The New York Times reported today. George Tenet made the warning after learning Israeli Prime Minister Benjamin Netanyahu made Pollard's case a key bargaining point in the peace talks, the Times said, citing administration sources. Tenet and a CIA spokesman both declined comment to the newspaper.."

Drudge Report 11/20/98 ".When the CIA uncovered "conclusive evidence" of the personal corruption of Prime Minister Viktor Chernomyrdin of Russia in 1995, they sent a report to the White House, expecting Clinton administration officials to be impressed, according to a report in Monday's NEW YORK TIMES. "Instead, when the secret CIA report on Chernomyrdin arrived in the office of Vice President Al Gore, it was rejected and sent back to the CIA with a barnyard epithet scrawled across its cover," reports TIMES spook writer James Risen. "I never discuss top-secret documents," Gore tells the TIMES in an interview. "They never want to hear this stuff," complained an intelligence official who asked not to be identified.."

Drudge 11/24/98 Exclusive ".The Clinton administration is facing the most massive leak of classified foreign policy documents since the publication of the Pentagon papers more than two decades ago during the Vietnam war, the DRUDGE REPORT has learned. "The impeachment proceedings are going to have seemed like a picnic, before we get though with this," said one White House official. The papers, totaling more than 20,000 pages, according to sources who have read them, include a history of the secret negotiations between the U.S. and North Korea, describing the failed policy of trying to buy off North Korea to forego its nuclear weapons policy. They describe in great detail the intelligence and policy failures that led to the detonations of nuclear weapons by India and Pakistan this year. Most embarrassing, the papers appear to corroborate, according to sources who have read them, allegations by a former U.N. arms inspector that the Clinton administration concealed from Congress and the public details regarding Saddam Hussein's ambitious program to develop nuclear, chemical, and biological weapons. The papers also reveal new details on the Clinton policy towards China in which the White House allowed ballistic missile technology exports to China at the behest of wealthy Democratic campaign contributors...The new leaks appear to be indicative of deep dissatisfaction within the foreign policy establishment regarding Clinton policies.."

USA Journal 11/26/98 Jon Dougherty ".However, a story broke yesterday - covered in the Journal today - that should take the remaining wind out of the sails of the dwindling legion of defenders of President Clinton. If it doesn't, then those people who still refuse to face up to the truth about this man should be made to pack their bags and leave this great nation of ours because they simply don't belong here any longer. Matt Drudge reported Wednesday evening that some 20,000 top secret State Department and intelligence documents have been leaked to key media personnel. Those documents may not only substantiate claims that Clinton has sold this country out to foreign hostile interests, but reportedly also detail how he did it. According to Drudge, the papers tell the stories about why North Korea has renewed their nuclear programs, why Iraq remains defiant, and why India and Pakistan tested and have begun to field new nuclear weapons systems within the past year. In short, they tell a story of incompetence, deception and greed - all Clinton trademarks. Furthermore the documents may also place Vice President Al Gore in an even worse light with the intelligence community after a New York Times a few days ago said he has been discounting CIA reports that were critical of Russia because the administration "doesn't want to hear any bad news about their friends in Moscow," even if true... But the revelation about these documents also answers some other questions. For example, they may explain why socialist Democrats in the Senate have helped scuttle any hope in the near future of a national ballistic missile defense. The papers may also help explain why Scott Ritter, a former UN weapons inspector, was so savagely attacked by this administration when he blew the whistle on the bogus U.S. effort to find and destroy Saddam Hussein's weapons of mass destruction. The discovery of these papers may also help explain why Congress has been so reluctant to pursue these cases of more serious abuses of office against Clinton [because many of them are in on all of this too]. And it may just help explain why Attorney General Janet Reno's `see no evil' attitude with Clinton and Gore prevails to this day. If the U.S. AG would attempt to threaten all the sweetheart deals Clinton and Gore have made with their greedy co-conspirators, it's hard telling what the Clinton Spin Machine would do to her and her career. But what now? When these reports are substantiated - and they will be - what will Congress and Reno do then? ..But now it's a different ball game. You see, no matter how well you cover your tracks in politics, when it comes to running an entire country there is literally nothing you can get accomplished by yourself. Our fine folks in the intelligence community will go along with an inept president and vice president for a while - but only as long as it doesn't seriously damage their ability to protect this nation from itself. Their positions of authority and power supercede the White House because these people are career folks who have been there forever and will be there long after socialist idiots like Clinton are gone.."

The Independent - UK Mary Dejevsky 11/27/98 ".THOUSANDS OF sensitive documents relating to US national security have been leaked, according to reports on the Internet yesterday. But America's mainstream media, preoccupied with the Thanksgiving holiday, seemed not to want to know. The documents, as many as 20,000 pages of them, are said to detail efforts by the Clinton administration to conceal the extent of Iraq's weapons development plans, White House approval for exports of sensitive satellite technology to China, and information about the incentives offered by Washington to North Korea in return for curbing its nuclear programme - terms that North Korea has in the event ignored...Verbatim details from the papers were not available yesterday, and Murray Waas, the reporter said to have the papers, could not be reached. Drudge suggested that Waas, who writes for the pro-Clinton Internet magazine Salon, was reluctant to divulge the contents while Bill Clinton faces impeachment proceedings.."

Freeper Trailer Trash 11/27/98 reports on MSNBC ". Bay Buchanan is hosting the Laura Ingraham show and mentioned the Grand Daddy document leak to Jim Warren. She gave the Drudge Report full credit. The tone of both was calm and analytical. 3 minutes later, Warren asks Scott Ritter about the Document leak. Ritter mentioned that all he knows is what is on the Drudge Report. There was no hint of skepticism in any of the voices at any time. This tells me two things. Drudge is considered a very valid source now, and this story may have big teeth. To my knowledge this is the first mention of this story on cable."

Center for Security Policy 11/23/98 Decision Brief "."At CIA headquarters in Langley, Va., the message seemed clear: The vice president did not want to hear allegations that Chernomyrdin was corrupt and was not interested in further intelligence reports on the matter. As a result, CIA analysts say they are now censoring themselves.".. Specifically, under Prime Minister Chernomyrdin, the Kremlin embraced crony capitalism with a vengeance -- the thoroughly corrupt mutant "market" system that has brought grief to economies throughout Asia and, most recently, in Russia itself. In fact, Chernomyrdin could have been the poster-child for this practice of self-dealing and -enrichment at the expense of the state and its citizenry. Obviously, the highest levels of the Administration -- most especially Vice President Gore, Chernomyrdin's interlocutor in a highly secretive joint commission -- did not want to change American policy towards Russia in light of the thoroughly dishonest character of the government in Moscow. It did not even want to know about the Kremlin's dishonesty...History will record that the world became a much more dangerous place on Bill Clinton's watch. Worse yet, it will probably show that -- thanks to his unwillingness to see, let alone to take appropriate measures in response to, emerging dangers -- the Nation was woefully ill-prepared to deal with them. ."

Drudge Report 11/29/98 ".Waas on Sunday night was said to be "bitterly angry" over the leak regarding the leak. "He is furious that word got out," a close friend to Waas explained late Sunday night in Washington. "He has been holding the documents close after showing them to two Washington newspaper editors." .. During the 1992 presidential campaign, both Clinton and Gore often praised Waas exclusives exposing the Bush administration's Iraq policy, which involved the leaks of thousands of pages of classified papers regarding the Gulf war. It is not clear when Waas will begin to unload on Clinton. Some in Washington speculate that left-wing Waas does not want to write a major expose about the Clinton administration in the midst of the impeachment hearings, fueling the flames for conservatives. "He's bitterly angry," says a close associate. "Conservatives have been spreading rumors to pressure him to do it. And now his White House contacts are now extremely angry and have stopped talking to him because he is doing it!"."

Washington Post 12/5/98 Vernon Loeb John Mintz ".The Justice Department has initiated a criminal probe of the CIA to determine whether the agency obstructed justice when it provided information to Hughes Electronics Corp. about the scope of an ongoing congressional investigation into the transfer of sensitive U.S. space technology to China, according to senior federal government officials. High-ranking CIA officials, including the agency's general counsel, have agreed to testify next week before a federal grand jury in Washington about information provided earlier this year to Hughes, which has supplied the CIA with satellites and sophisticated communications equipment for decades. Government sources say the CIA provided information to Hughes about the Senate Select Committee on Intelligence's technology transfer investigation that might have enabled the firm to anticipate the moves of congressional investigators..Sources said the matter began this fall when a CIA analyst specializing in Chinese technology, Ronald Pandolfi, was called to the Senate committee and told staff members that he had concluded in 1995 that Hughes had been too aggressive in marketing high-technology equipment in China. At the time, according to an account from several sources, Pandolfi conducted interviews with Hughes executives about their work in China, causing Hughes to complain angrily to the CIA that he was operating outside of customary channels. The CIA office that regularly deals with Hughes reprimanded Pandolfi, who, after being summoned by the committee, in September laid out a set of accusations against the firm, sources said. Aware of Pandolfi's views, the CIA gave Hughes a heads-up about his discussion with the committee and offered to supply the panel with the names of Hughes executives who might explain the disagreement, sources said. ."

Christian Science Monitor 12/7/98 James Thurman ".When President Clinton agreed in October in the heat of the Wye River peace talks to reconsider the sentence of Israeli spy Jonathan Pollard, he reopened a dispute between the two nations that many in US intelligence circles want left closed..Pardoning a convicted spy would be devastating to the already low morale in the American intelligence community, analysts contend. To some, it's embarrassing that the president even agreed to reconsider the matter...Last week the White House counsel's office acknowledged it sent a memo to top foreign-policy officials in mid-November. The memo solicits the recommendations of Attorney General Janet Reno, Secretary of State Madeleine Albright, Secretary of Defense William Cohen, and Central Intelligence Agency Director George Tenet. The document also requests any information or evidence relevant to the clemency decision. Mr. Goss suggests going public with the memo is an exploratory effort, a test to determine if there is enough public support to sustain a pardon.."

Softwar Website 12/7/98 Charles Smith ".The word being circulated through the halls of Congress is that Clinton is miffed at CIA Director Tenet for opposing the export of Johnathan Pollard (crypto spy) to Israel. Tenet reportedly threatened to walk if the Israeli spy is released in a U.S. deal for the West Bank. White House insiders are said to be leaking the new information to embarrass the CIA Director into a possible resignation. Meanwhile, Congress is offering Hughes engineers immunity if they tell all about their deals with the Chinese Army. General Reno is concerned that Congressional immunity will spoil her plans to prosecute underlings and scapegoats in order to avoid the big fish in the White House.."

Cspan2 2/2/99 US National Security Senate Armed Servies Committee Freeper buttercup ".Lt. General Patrick Hughs expressed his concern about information getting out ahead of, or in advance of U.S. operations.." And adds ".CIA Director George Tenant said our government is hemorrhaging in a way profoundly damaging to our interest. The press is not the problem. Some people derive some power from leaking this information. People have lost their sense of discipline. It is coming from the Executive Branch of government.."

Associated Press 2/21/99 "...The night before Cuban MiGs shot down two Miami-based planes of a civilian rescue group, an adviser to President Clinton warned the White House of a possible confrontation, a newspaper reported Sunday. Richard Nuccio told The Miami Herald that he never got a reply to the memo he sent at 6:44 p.m. on Feb. 23, 1996, using the White House's electronic mail system. The e-mail went to Sandy Berger, now Clinton's national security adviser, said Nuccio, who has since left the White House. Nuccio said he also tried several times to speak to Berger by telephone but got no response. White House spokesman P.J. Crowley told The Herald that Berger received Nuccio's memo, "but he did not have a chance to read it that evening." He added: "Rick was acting on his intuition. In point of fact, we had no intelligence to suggest that the Cubans would act in a hostile manner." ..."

Cato Institute 2/23/99 by Timothy M. Beard and Ivan Eland "...Although the end of the Cold War reduced the likelihood of a nuclear exchange between the superpowers,several smaller rogue states, through their dedicated efforts to acquire weapons of mass destruction and ballistic missiles, have emerged as potential threats to U.S. national security. National Intelligence Estimate 95-19 stated that no new missile threats to the United States would develop before 2010. However,given the curious circumstances of the estimate's release and the many analytical faults contained in the document, its results have been questioned. In the summer of 1998, the congressionally appointed Rumsfeld commission reported that the ballistic missile threat to the United States was greater than the intelligence community had postulated. The commission noted that any one of several rogue states could decide to acquire a capability to inflict major destruction on the United States and then do so within five years. Only recently has the Clinton administration begun to grudgingly acknowledge that the threat may be more severe than it had anticipated. To reduce the risk posed by unforeseen threats, the United States should reallocate money in the intelligence budget from technical means of collection to human collection--which might be more effective in discovering proliferation--and should develop a limited national missile defense.... Syria, Iraq, Libya, Iran, and North Korea pose the most likely threats to the American homeland and American forces in foreign theaters....each of those nations has made a diligent attempt to acquire ballistic missiles and some sort of WMD capability either through an indigenous development program or by purchasing the technologies on the open market...."

Electronic Telegraph 3/8/99 Hugh Davies Julian Nundy "…THE CIA mounted a coup operation against Saddam Hussein in 1995, even setting March 4 as the date. But the plan was ditched at the last minute when the White House withdrew support. Details published in Le Journal du Dimanche in Paris follow disclosures that the CIA infiltrated teams of United Nations weapons inspectors in Iraq, among them nine officials, who were part of an attack being mounted from Jordan in June, 1996. This went awry after Saddam infiltrated a group of Kurdish dissidents on whom the agency was relying. Dozens were executed.

The French newspaper said a five-man CIA team was put in place for the earlier attempt. When it was called off they were arrested by the FBI and charged with attempted murder. Gilles Delafon, a Middle Eastern affairs specialist, said charges were dropped in 1996 and the five were decorated for their work, but "the affair seriously shook CIA morale". The CIA, respecting an order dating from the presidency of Gerald Ford banning assassinations, planned a coup in which the Iraqi leader would have been overthrown and replaced by five Iraqi generals. The strategy was drawn up with the help of Gen Wafic al-Samarai, an Iraqi officer who defected. The plan involved an uprising by Kurds in the north of Iraq, while military opponents of Saddam attacked the barracks where he had his residence. But on the eve of the attack, the CIA team received a message from Tony Lake, President Clinton's national security adviser, telling them the White House did not back it…."

Global Intelligence Update 3/8/99 "…Four intelligence scandals blew up in the past week or so: A blown U.S. intelligence collection operation in Iraq; Chinese theft of nuclear weapons secrets from Los Alamos; the claim that Israel's Mossad had taped Clinton having phone sex with Monica Lewinsky and was using it to blackmail Clinton into stopping a mole hunt for an Israeli agent in the White House; and suspicion that Greece had traded U.S. and NATO jamming codes to the Russians. However true each of these is, somebody has clearly launched a campaign against the Clinton White House. Depending on your point of view, this is either another in an endless series of attempts by a vast right-wing conspiracy to discredit the President or a desperate attempt to warn the country about the incompetence or malfeasance of the Administration. But it does not strike us as accidental that these four reports all hit the major media within a few days of each other. We see a "culture war" underway between the Clinton Administration and the national security apparatus. Underlying it is a fundamental disagreement as to the nature of the international system, the threat faced by the United States and the appropriate policies that ought to be followed…."

Global Intelligence Update 3/8/99 "…But even behind this, even behind the hints of corruption and malfeasance, there has been a deep-seated sense within the defense and intelligence communities that the Administration was simply not sensitive to the national security needs of the United States. From the beginning, there has been a deep policy and cultural divide between the national security apparatus that was honed and seasoned during the Cold War and the Clinton Administration. For the Clintonites, the need to maintain engagement with China and Greece, for example, outweighed archaic concerns about weapons system security. Attention to the fine details of covert operations, which would dictate not operating within the easily exposed milieu of UNSCOM, was not seen as a priority. Maintaining communication security and not calling a mistress on an open telephone line was not taken seriously. Someone in the national security community, or among its congressional allies, decided this week to open a new campaign against the President. Whoever the leakers were this week, they are trying to paint a picture of an Administration that was simply indifferent to the classical concept of national security. The end of the Lewinsky affair has, it appears to us, opened a new battlefield in which the stakes are much higher. The President and his Administration are being charged with being either fools or knaves when it comes to defending the security interests of the United States…."

London Telegraph 10/26/97 Ivo Dawnay "…THE mysterious resignation of a top CIA official has provoked charges that the United States Government is hushing up politically embarrassing disclosures of nuclear skullduggery by China and Russia. By the time China's President Jiang Zemin arrives in Honolulu today for an eight-day state visit, Gordon Oehler will have cleared his desk at the Non-Proliferation Centre at the CIA's headquarters in Langley, Virginia. Yet just a week ago, Mr Oehler, who was responsible for co-ordinating all American intelligence gathering on nuclear arms sales, was assuring Congressman Curt Weldon, the chairman of the House National Security Committee, that he had no intention of quitting. Less than 24 hours later, he had gone, claiming that he had been driven to resignation by plans to cut the budget and responsibilities of his department and by endless interdepartmental battles over what information should be passed on to the public and Congress. The departure of Mr Oehler, a 25-year career CIA officer, may have little to do with President Jiang's visit directly. But it will certainly be welcomed by military chiefs in Beijing and by China's burgeoning arms export industry…."

NewsMax/ABCNEWS.com 3/8/99 Eric Wagner "…The Chinese and other foreign governments, say DOE officials, have exploited a culture of openness, and lax security systems at the labs ‹ which are owned by the government but operated by the University of California ‹ that makes them what one official calls a "Wal-Mart" for spies shopping for nuclear secrets. From 1994 to 1996, a General Accounting Office survey found that eight people with known or suspected connections to foreign intelligence services were let into the Los Alamos lab without background checks, and five were let into the Sandia National Laboratories. The GAO also found that in many instances foreign visitors were allowed to roam unescorted after hours in sensitive lab areas. A Los Alamos official told the GAO in 1997 that the facility allowed the access to preserve an open "campus atmosphere" for researchers. Chinese operatives also target Chinese-American nuclear scientists during business travel and at scientific conferences, appealing to their ethnic roots, officials say….."

 

Capitol Hill Blue 3/9/99 Doug Thompson "… The FBI, CIA and the National Security Agency (NSA) all warned the White House three years ago that China was obtaining U.S. weapons secrets at will, but the Clinton administration ignored the warnings and approved contracts that involved key Democratic campaign contributors. "It's a sieve at our national labs, with our defense contractors and this administration," said one Energy Department source who asked not to be identified. "We might as well publish all of our classified material in the New York Times." Despite the warnings in 1996, President Clinton approved the sale of sensitive technology to China by the Loral Space & Communications, a company run by Bernard Schwartz, who contributed more than $1 million to Clinton's and other Democratic campaigns in 1995. ….But several officials at the Energy Department and within the Clinton administration disclosed in confidential interviews that there is an unofficial "look the other way" policy in place where China is concerned. "We weren't supposed to look that closely where China was concerned," one Justice Department source said Monday. "There was a 'hands off' policy that was understood." In fact, the Clinton administration ignored repeated warnings from the FBI, CIA and NSA over the loss of secrets to China. Confidential memos sent to the White House often mentioned suspects who are also contributors to Clinton's last two election campaigns as well as campaigns of other Democratic candidates.

"Yes, many of the players in this have a history of contributions to the President's campaigns," a Justice Department source said Monday. "We raised red flags about this three years ago." At the time the FBI questioned the approval of the Loral deal, White House Counsel Charles Ruff told Clinton to ignore the concerns because they were being raised only by "career staff" members…. A "career staff" member at Justice laughed when asked about that Monday. "Career staffers are not Clinton appointees," he said…. "

Original Sources 3/9/99 Mary Mostert "… Now, let's see. Wen Ho Lee "has been under FBI investigation since late 1997" but the Bureau has not been able to "develop specific evidence against him so the Clinton Administration "Allowed Lee to remain at his classified job, while under surveillance for high treason?" It appears action was taken to REMOVE him when, but not before, Senator Lott and Senator Shelby complained about the situation. …The fact of the matter is that, from its inception in 1993 the Clinton White House has shown contempt for national security concerns. Gary Aldrich, in his book, published in 1996, spoke of the Clinton White House deriding the very idea that people needed security clearances to handle or read classified documents. "I believe that classified material passed through the hands of Clinton employees without security clearances," Aldrich wrote, outlining the constant stonewalling he experienced when attempting to conduced required background checks on White Youse employees. A General Accounting Office report made public in October 1995 revealed that from 20 January 1993 to March 1994 there were only twenty-four employees in the entire Clinton administration who have been cleared to handle the thousands and thousands of classified documents…."There was no way they could have handled the workload," Adrich wrote. "I believe that classified material passed through the hands of Clinton employees without security clearances. After all, little or no regard was given to any other security-related policy or procedure. Why would they treat classified documents any differently?" Why, indeed? The Clinton White House learned of nuclear spying in 1997 by another scientist, Peter Lee, a Taiwan born scientist working in the Los Alamos lab, who evidently turned over information about national security laser programs during a trip in 1985 to China. Peter Lee confessed in December 1997 and was sentenced to 12 months in a halfway house. Twelve months in a halfway house? The Rosenbergs were executed for less than that…."

Wall Street Journal 3/19/97 Editorial "…Just in the last week, we learned that FBI officials tipped off two NSC underlings last June about Chinese government intentions to influence U.S. politics. Mr. Lake says he was never told because the FBI advised the pair to keep it to themselves. The FBI replies that its agents told the NSC no such thing -- and why would they tell the NSC if not to have the information influence official policy? Stranger still, one of those FBI agents assigned as liaison to the NSC, Edward Appel, is now quitting the White House for undisclosed reasons. Attorney General Janet Reno also now says she tried to tell Mr. Lake about the Chinese tie last May but couldn't get him on the phone. Maybe Ms. Reno would have had better luck if she'd tried talking to Sandy Berger, then Mr. Lake's deputy and now successor as NSC adviser, who we know attended the weekly White House campaign strategy meetings all last year. This is unheard of among foreign-policy advisers, who usually try to distance themselves from campaign work. With so many new and odd developments, the Senate can be forgiven if it doesn't take White House explanations at face value. We're sympathetic to those who say that Mr. Lake, with his intelligence and experience, is about as good as we're going to get from this administration. But Jim Woolsey was a first-rate CIA chief, until he proved too independent for this president. The CIA is a secret, enforcement agency where such independence is vital, especially in an administration as given to corner cutting as this one. With the FBI now publicly feuding with Mr. Clinton over who knew what and when about Chinese influence, it stretches belief that a member of his White House responsible for China policy would now go to run the CIA, in charge of intelligence that might bear directly on the China-campaign connections…"

New York Post 3/10/99 Editorial "…But what's immensely troubling is what the Clinton White House did in 1995, on learning that China had obtained top-secret American MIRV technology a decade earlier….Specifically, Beijing acquired critical information about the W-88 nuclear warhead, which is small enough to permit the targeting of eight sites from a single submarine-launched Trident missile. The latter have a range of 4,000 miles, and the warheads detonate with a force equal to 20 times the power of the Hiroshima bomb. That such knowledge has proliferated is disturbing. Yet Congress must also determine why, by all accounts, the administration moved far too slowly, both to investigate the security breaches and to assess their impact. Even now, says Energy Secretary Bill Richardson, ''we still don't knowthe extent'' of the problem…."


Knight Ridder 3/9/99 Michael Dorgan "…The most surprising thing about the case of the scientist who was fired from the Los Alamos National Laboratory for allegedly helping China steal nuclear secrets may be that it was surprising. Former and current U.S. intelligence and FBI officials said Beijing has created a vast espionage network in the United States that has penetrated not only the nation's nuclear weapons labs but also many corporations whose technology China covets for both military and commercial purposes. In fact, the officials said, the case of Taiwan-born computer scientist Wen Ho Lee, along with a classified congressional report documenting a sustained and successful effort by China to steal American military secrets, raise disturbing questions about whether any of America's secrets are safe from the prying eyes of China's spies…. China's espionage efforts constitute a ``completely different kettle of fish,'' said Paul Redmond, a former head of counterintelligence for the Central Intelligence Agency who is credited with exposing Soviet spy Aldrich Ames. ``Culturally, in my view, they operate in a totally different environment and a different time frame,'' said Redmond, who left the CIA last year to start his own security firm. ``Chinese do not think in terms of hours, days or weeks but in terms of decades. They are an ancient civilization. They are able to deal with the intricacies of long-term …By the 1980s, China's intelligence agencies had succeeded in penetrating many of the nation's research labs, Lilley said. But he added that the outflow of secrets probably has accelerated since the end of the Cold War and the relaxation of many security barriers. ``I think we see the tip of the iceberg,'' he said. Lilley said China's espionage efforts here are more threatening than those of many other countries because China is a major power with nuclear weapons and has identified the United States in its internal documents as a potential ``target.'' ``They don't mince words,'' he said. ``They are quite specific about the United States being the greatest obstacle to Chinese manifest destiny and sovereignty.'' …"

The Village Voice 3/10-16/99 Jason Vest "…While the Domestic Lie will draw the wrath of Congress and the independent counsel and whip the Fourth Estate into a frenzy that flings all else aside, the National Security Lie— though more blatant and consequential— will be granted and allowed to fly off into the horizon of memory. Case in point: Last August's obliteration of the Al Shifa pharmaceutical plant in the Sudan. Two Fridays ago, the Al Shifa's owner, Salah Idris, filed lawsuits against the U.S. government in Washington and San Francisco to release millions of dollars the Treasury Department ordered frozen last year, not long after the Defense Department— on instructions of the commander in chief— destroyed Idris's Khartoum plant with 13 cruise missiles on the heels of Clinton's grand jury testimony in the Lewinsky matter…. One shouldn't forget the details, or think they've ceased to matter, according to a veteran intelligence agent who spoke with the Voice on condition of anonymity, and who has spent most of his career in the shadow of mosques— including those in Khartoum. "You once could have made the argument that the intelligence community was subverting the polity," he mused. "This is a case that shows a change— the polity subverting the intelligence community. And it underscores how oblivious Americans are to the rest of the world that they can be fed this shit. Al Shifa was bogus." …"

Original Sources (www.originalsources.com) 3/09/99 Mary Mostert Freeper Bommer "…Gary Aldrich, in his book, published in 1996, spoke of the Clinton White House deriding the very idea that people needed security clearances to handle or read classified documents. "I believe that classified material passed through the hands of Clinton employees without security clearances," Aldrich wrote, outlining the constant stonewalling he experienced when attempting to conduced required background checks on White Youse employees. A General Accounting Office report made public in October 1995 revealed that from 20 January 1993 to March 1994 there were only twenty-four employees in the entire Clinton administration who have been cleared to handle the thousands and thousands of classified documents…."

Capitol Hill Blue 3/10/99 Doug Thompson "…Many career intelligence officers consider President Clinton and the White House a security risk and withhold sensitive information whenever possible to prevent it falling into enemy hands, Capitol Hill Blue has learned. Often, information is also withheld from Clinton appointees at the Federal Bureau of Investigation (FBI), the Department of Justice and the Central Intelligence Agency (CIA), veteran intelligence operatives say. "The White House is not secure when it comes to matters of national security," says one recently-retired intelligence analyst. "Career operatives realize this and place the security of their country above politics." …Capitol Hill Blue has spoken to a half-dozen current and former intelligence operatives who agreed to speak on condition that their identities be protected. They tell a story of poor morale at both the CIA and the National Security Agency (NSA), where political infighting threatens national security. The White House, they say, has little use for career professionals, preferring to put political hacks into high-security positions. "Intelligence is not something that a political appointee can learn quickly and there is always a question of his loyalty to the elected official who put him in his job," one current career operative says. "You have to depend on the career professional to put all this into perspective."…. Capitol Hill Blue has obtained a 1996 memo written by White House Counsel Charles Ruff advising Clinton to ignore warnings from intelligence professionals about the transfer of sensitive technology to China and listen instead to the Presidential appointees. "The department had every opportunity to weigh in against the waiver at the highest levels and elected not to do so,'' Ruff wrote. "This is typical," one retired operative says. "If you don't get an analysis that supports your position from the pro you turn to the political appointee who will tell you anything you want to hear." Because of this, career intelligence professionals decided among themselves to withhold, whenever possible, classified information from the White House. "We've learned in the China debacle that U.S. secrets are for sale to the highest campaign contributor," one retired intelligence officer said. "So it helps to make sure that the information that is passed on is never complete. It's something you have to do if you love your country." …"

Judicial Watch 3/11/99 "… Recently, Judicial Watch uncovered that security procedures remain so lax at the Clinton Commerce Department that anyone with a top secret clearance can walk out of the agency with classified documents in his or her briefcase. Indeed, Judicial Watch had already found that confidential and classified satellite encryptions, along with CIA reports on China, Russia and India, were taken out of the Department by Ira Sockowitz, a confidant of John Huang. The classified materials were perhaps bound for the Chinese. But the Clinton Administration and Congress have failed to thoroughly investigate this. Judicial Watch will, however. This underscores the serious national security weaknesses in the Clinton Administration. For instance, Sandy Berger, the National Security Adviser who buried information about the breach of security at Los Alamos laboratory, is not trained in national security issues. He was an international trade lawyer, specializing in antidumping cases, at Hogan and Hartson, a predominantly Democrat law firm, before joining The White House. It is an understatement to say he thinks "politically," and not strategically. The Huang diaries are a window into the access potential Chinese agents have to classified national security information in the Clinton Administration. Given Huang's importance, they are perhaps the Rosetta stone, from which to do a serious investigation. Judicial Watch is carrying out this investigation in its multitude of lawsuits on Chinagate. Huang will be redeposed by Judicial Watch…."

Buchanan Press office 3/10/99 "…Republican Presidential candidate Pat Buchanan today demanded that National Security Advisor Samuel Berger explain his "dereliction of duty" in failing to alert congressional leaders to the theft of top secret U.S. nuclear warhead technology. According to a New York Times story March 6, intelligence officers at the CIA and the Department of Energy informed Berger in April of 1996 that China had acquired the design features of America's most sophisticated nuclear warhead. William Safire writes that Berger "did nothing." In early 1997, intelligence officials uncovered evidence linking the Chinese to several ongoing spy operations at the nuclear weapons laboratory in Los Alamos. Berger, fully briefed on these matters in July 1997, failed to alert congressional leaders or the chairmen of the House and Senate Intelligence Committees. "The allegations surrounding the transfer of atomic secrets to a potential enemy are the most serious since the Rosenbergs went to the electric chair for atomic espionage in 1953. Our security has been compromised, our technology stolen and our cities placed in mortal peril," Mr. Buchanan said. "Mr. Berger owes his country an immediate explanation for his laxity and inexplicable failure to inform Congress and the American people about the breach of our security. If Mr. Berger cannot satisfactorily explain his dereliction of duty, he should resign," Mr. Buchanan added…."

International Herald Tribune 3/11/99 Richard Lugar "…This could well be one of the most serious security breaches in America's history. Representatives Christopher Cox and Norm Dicks have pried the subject open through a bipartisan select House committee report. Presumably there will now be some accounting through the judicial system. The Clinton administration's handling of the discovery of this espionage also will be examined.

But the immediate focus of the president and Congress must be the recognition that the United States may now be at significantly greater risk from a Chinese ballistic missile attack. This recognition must inform the continuing debates about the efficacy of a strategic partnership with China….. In recent years, many of our protests to the Chinese leadership have been directed at missile and other technological transfers to third countries. We now know that our agenda should have paid at least as much attention to what China was doing to develop its own long-range missiles capable of delivering multiple payloads against American targets….. Lax security arrangements at our national laboratories have been debated for some time; charges about the theft of nuclear-related secrets go back to the 1980s. The debates about how such thefts translated into Chinese military gains have gone on for many years.

Further complicating matters are the campaign abuses involving China that have been attributed to the White House. Some of those abuses involved extraordinarily bad judgment by the president himself. For several years Congress has witnessed the stonewalling of attempts to pry loose documents and obtain the testimony of key participants in the scandal. Most Republican members of Congress discount the president's explanations of Chinese campaign contributions, the merits of his administration's licensing practices for dual-use technology transfer to China and even the credibility of his own policy pronouncements vis-à-vis China….."

CBS 3/10/99 "…CBS News has learned there is yet another top-secret investigation of Chinese nuclear espionage. This case involves the theft of information about America's neutron weapons program from the Lawrence Livermore Weapons Lab, CBS News Correspondent Sharyl Attkisson reports. It's a separate case from the one involving nuclear secrets stolen from Los Alamos Weapons Lab and America's W-88 nuclear warhead. The neutron case has been under investigation for several years, and remains active and unsolved. The U.S. has conducted tests, but there are no neutron weapons in the U.S. arsenal. Sources tell CBS News it's further proof of China's aggressive - and successful - espionage efforts targeting America's nuclear weapons labs…."

Toronto Sun 3/14/99 Eric Margolis "… According to the FBI, China is the third most active foreign power spying against the U.S., after Israel and Russia. China's intelligence efforts have focused on stealing or buying technology from Silicon Valley. For operational cover, China uses some of its 1,800 diplomats and journalists spread across the U.S. and Canada in at least 85 offices, as well as the 15,000 students and nearly 3,000 assorted delegations that visit North America each year……."

LA Times 3/14/99 Bob Drogin "…In one report, GAO investigators said security was so sloppy at the three labs until last fall that foreign visitors, including suspected spies, often were allowed 24-hour, unescorted access to areas where sensitive and classified information was stored. In one case, the material was stashed in boxes placed in an open hallway. But the Department of Energy largely ignored recommendations contained in the 1988 report. A follow-up GAO report in 1997 and a separate FBI investigation determined that counterintelligence efforts were still flagrantly ineffective at the Los Alamos, Sandia and Lawrence Livermore national laboratories…."


Insight Magazine 4/5/99 Sean Paige "…According to the General Accounting Office, or GAO, only 37 percent ($23.7 million) of the $63 million spent so far by the IPP actually found its way into the coffers of research institutes or the pockets of individuals in the NIS. U.S. nuclear labs administering the program, together with several dozen participating companies, have skimmed off 63 percent of the money meant to put food on the table for their potentially desperate counterparts in Eastern Europe…. Disturbingly, the GAO found that DOE officials have only the foggiest notion about how many scientists they are subsidizing and which formerly Soviet nuclear-research institutes are receiving exactly what amounts of money. "Some scientists working on Russia's weapons of mass destruction program are receiving [U.S.] funds," GAO concluded. . . . . The GAO also reports that IPP's efforts to find commercial applications for Soviet weapons research may have resulted in the export to Russia of "dual use" technologies -- transfers, says the GAO, that "could negatively affect U.S. national-security interests." And finally, the GAO criticized as "cursory" the process by which IPP projects were reviewed for national-security implications -- even projects concerning biological or chemical weapons. …."


Newsweek 3/14/99 PRNewswire "… The FBI now believes it has virtually no chance of making a case that Taiwanese-born Wen Ho Lee passed critical nuclear secrets to China, Newsweek reports in the current issue. Senior law-enforcement officials tell Newsweek that they are in fact not at all confident that he committed a crime…. One Chinese scientist caught smuggling secret recipes for space-age plastics was dumbfounded when interrogated by the FBI. ``He saw himself as a good citizen of the world,'' says one agent. ``He must have said a hundred times, 'The Chinese are our friends, is this really such a bad thing?''' …"

New York Post http://www.nypost.com/ 3/15/99 Brian Blomquist Freeper A Whitewater Researcher "…EXCERPTS: "The chief congressional Chinagate investigator said yesterday that U.S. research labs are still losing vital intelligence secrets to Beijing....''This problem is an ongoing problem,'' Rep. Chris Cox (R-Calif.) said yesterday....''Our committee believes that not only now, but for the indefinite future, we have serious counterintelligence problems at our national laboratories and elsewhere throughout the government,''...Cox said his spec ial Chinagate committee plans to release its 700-page report on Chinese espionage in the next two weeks. The White House already has a copy of the report and is trying to keep most of it secret....Cox said his committee's report also would deal in part wi th campaign contributions and the possible effect on policy....''The issues of Chinese money and campaign contributions are covered in our report, although it is not the great bulk of our report,'' Cox said...the top Democrat on the Cox committee...agreed with Cox that Chinese spying is "very serious, very significant…"

Judicial Watch 3/15/99 "…In the lawsuit which uncovered John Huang and sparked the Chinagate scandal, Judicial Watch recently deposed the head of the China desk at the Clinton Commerce Department, Mr. Donald Forest. Forest revealed that, contrary to commitments made by current Commerce Secretary Bill Daley, anyone with a top secret clearance could still take classified documents out of the Department without any supervision. Bob Woodward, famed Watergate reporter, has written that Huang did pass classified information to the Chinese. Judicial Watch will redepose Huang next month. In its lawsuit, Judicial Watch previously discovered that John Huang confidant Ira Sockowitz took classified satellite encryptions and CIA reports on China, India and Russia when he left the employ of the Clinton Commerce Department. Sockowitz and other Huang confidants went on Clinton trade missions to China…."

New York Times 3/15/99 William Safire "…Does Lieut. Col. Liu Chaoying, daughter of a top Chinese general, provide a link between the stealing of secrets at our national laboratories in the 80's and the purchase of secrets from our American satellite and computer manufacturers in the 90's? Did a U.S. company help China widen the acquisition envelope of its SA-12 anti-aircraft missile by 20 degrees, and are Air National Guard F-16 pilots now being briefed on their new danger? Is it true that even now, tens of thousands of E-mail messages every month flow out of our national laboratories at Sandia and Los Alamos -- but our National Security Agency's Big Ear fails to monitor them? Is Berger telling the public the same story he told the Cox committee under oath? If so, why was President Clinton denied knowledge from 1995 to 1997 about this most damaging atomic spy coup since the Rosenbergs? Isn't a President entitled to such information before proposing a "strategic partnership"? Or did Clinton really know? But to pose these questions is outrageous. …"

ABC News, 3/09/99 Freeper Jolly "… And over the past decade, officials say, the Department of Energy and the White House have received several explicit warnings about the labs’ vulnerabilities. A GAO report in 1988, an FBI review in 1995, a CIA analysis in 1996, another classified FBI review completed in 1997, two additional GAO reports in 1997 and 1998, and a recent 90-day review by DOE exposed problems at the labs and offered detailed recommendations to fix them. The FBI review in 1997 made 26 counterintelligence recommendations for the labs. Eight were implemented, officials say. The GAO reports published in 1997 and 1998 cited DOE for not implementing counterintelligence measures recommended by GAO in 1988. We didn’t have the support to do these things," says a counterintelligence official. When DOE intelligence officials brought their findings about the W-88 to the White House, they were met with skepticism, and their conclusions about the extent of the compromise were rejected, according to sources. A National Security Council official then ordered the CIA analysis of DOE’s data…"

Freeper Squantos reports 3/15/99 "…As you know from older posts I have moved during the period of time stated above from an active duty position in Critical Nuclear Weapons Design Information duties to a civilian form of the same job at the Department of Energy. O'Leary made statement's and discussed information that some individuals in the military are still in Levinworth KS for discussing. Her open use of terms and procedures in speeches to the public used to make use cringe and wince. Who knows, (we do now) what she said in private meetings with foreign weapons expert's. Political Appointees have no idea what they are doing with regards to classified information and what must occur prior to it's release. He implementation of a whistleblower program resulted in classified walking out the front door and due to the nature of the law suits involved the FBI ignored or elected not to play…."

Capitol Hill Blue 3/17/99 Doug Thompson "… The Clinton administration, busy approving the sale of sensitive technology to China, ignored warnings in 1996 from a senior Energy Department Official who said security at the nation's nuclear weapons labs were lax and needed to be tightened immediately, department sources tell Capitol Hill Blue. The official, Deputy Secretary of Energy Charles Curtis, ordered a tightening of security at the national labs, but his orders were never implemented and were also ignored by incoming Secretary of Energy Fredrico Pena when he took office in March, 1997. The White House was also aware of Curtis's order, but chose to ignore it, DOE sources say. At the time, President Clinton was approving the sale of sensitive nuclear technology to China by Loral, a company headed by one of his largest campaign contributors. The revelations directly contradict earlier claims by administration officials that they first learned of the lapses in security in the summer of 1997, more than eight months after Curtis tried to take action. Pena claims he was unaware of the order by Curtis, who left the agency shortly after he became Secretary of Energy, but other Energy Department sources say the new Secretary was fully briefed on the concerns about security at the national labs. "If Pena says he didn't know about this, he's a goddamned liar," an angry DOE official said Tuesday. "There is no way an incoming secretary of energy wouldn't be briefed on something as important as this. I know for a fact that this information was part of his initial briefing materials." …"

Reuters 3/17/99 "…Energy Secretary Bill Richardson Wednesday pleaded for less hysteria over the China spying scandal as he outlined security steps to monitor e-mails and faxes at U.S. nuclear research laboratories. ``We are taking adequate measures, we are addressing the problem,'' Richardson said. ``Let's not get hysterical.'' ….``China did get information relating to the W-88 (nuclear warhead) which is damaging to our national security. The extent of that damage is not known yet,'' Richardson said.

He proposed steps that included ``controlling e-mails out of the labs. And trying to make sure that no classified information leaves the labs to foreign countries.'' …Richardson said the e-mails were ``a potential problem'' but had not been a problem in the past….Shelby said Congress would continue investigating the matter and the committee may call former energy secretaries to testify who were in that job when the alleged spying occurred in the 1980s. ``I believe tonight that our labs are still not safe,'' Shelby, an Alabama Republican, said. Asked about Richardson's comments on hysteria, Shelby replied: ``I don't think anybody's hysterical, I think we're trying to be measured in what we're doing.'' …"

USA Today 3/17/99 Peter Eisler "…The Department of Energy requested at least 19 FBI investigations last year after internal reviews indicated classified or sensitive information was leaked, stolen or compromised at U.S. nuclear weapons plants and laboratories. The referrals were among a host of "critical" security concerns noted in internal DOE briefing material prepared last summer for incoming Energy Secretary Bill Richardson. The ongoing investigations suggest that questions about the agency's safeguards go far beyond those raised by recent revelations that a scientist at Los Alamos (N.M.) National Laboratory may have passed nuclear weapons secrets to China in the mid-1980s. "There has been an alarming increase of instances where nuclear weapons design, intelligence and other national defense information has been either compromised or placed at risk," said the June 1998 memorandum prepared by DOE security officials. Other problems noted in the briefing material and other internal reports obtained by USA TODAY include a backlog of 4,000 "reinvestigations" that need to be done on DOE personnel whose security clearances are beyond their five-year re-examination date. Deficiencies in security forces, alarm systems and other safeguards at several sites also were cited as "critical issues." FBI officials declined comment on the status or direction of any investigations based on DOE referrals. Internal DOE memos say some of the cases involve "disclosures of classified and/or sensitive unclassified information, including potential nuclear computer codes, to foreign nationals," though there's no indication of what countries may be involved. Others focus on unspecified compromises of records by telephone, e-mail and fax machines as well as through the media….Despite the rise in referrals, DOE officials say nuclear weapons material and information is well-protected…."

The Washington Times 3/22/99 Joyce Howard Price "…Energy Secretary Bill Richardson, whose department oversees the weapons labs, called the "total penetration" [Newsweek] claim "an over-exaggeration." "There's a lot of hysteria out there that is unfounded, but we will get to the bottom with ongoing investigations of any future problems," he said on NBC-TV's "Meet the Press." Mr. Richardson did not deny the accuracy of the Newsweek report, which said CIA analysts -- responding to President Clinton's order for a preliminary "damage assessment" to determine just how much Beijing knows about U.S. nuclear technology -- found evidence the Chinese "have cracked even the most secret weapons labs." According to Newsweek, U.S. officials investigating Chinese espionage believe China, over the past two decades, may have acquired design information about seven U.S. nuclear warheads, including the neutron bomb developed in the early 1970s. They believe China may also have stolen secrets about U.S. efforts to develop a nuclear weapon able to create an electromagnetic pulse "that would short out anything in an enemy nation that uses electricity." The CIA and a team of top nuclear-weapons experts came to these conclusions, Newsweek says, after CIA analysts pored through data gleaned from U.S. espionage against China. The material included years of communications intercepts and revelations from a 1995 defector involved in China's nuclear program. The material -- much of it written in Chinese and never read --had been stored in CIA computers and forgotten about until now. Newsweek said that when the CIA showed the evidence to several nuclear-weapons experts "they practically fainted." The magazine quoted one unnamed U.S. official close to the probe: "The Chinese penetration is total. They are deep, deep into the labs' black programs."…."

Sacramento Bee 3/28/99 Nando Media/Reuters "…The New Yorker magazine reported on Sunday that Western intelligence officials believe Russian Prime Minister Yevgeny Primakov took a payoff from Iraq in exchange for strategic materials from Moscow to build up its nuclear weapons stockpile. Pulitzer-Prize winning investigative reporter Seymour Hersh quoted high-level American intelligence sources as saying Primakov received $800,000 in a wire transfer in November 1997. The New Yorker said a spokesman at the Russian embassy in Washington denied all charges of corruption against Primakov. National Security Adviser Sandy Berger, asked about the report during an appearance on ABC's "This Week," said that while he had not read the whole article and had just seen it, "I have no evidence to support that, no. I don't know whether Mr. Hersh has." In the report, Hersh quoted one unidentified source as saying, "A payment was made." "This is rock solid - like (now-jailed Mafia boss) John Gotti ordering a whack on the telephone. Ironclad." The weekly magazine, which goes on sale on Monday, said a British signals-intelligence unit intercept produced evidence of the transfer. It quoted a second unidentified U.S. official as saying, "There was a wire transfer to an account of $800,000." …"Russia is hopeless now," Rolf Ekeus, the first head of the United Nations Special Commission (UNSCOM) in charge of dismantling Iraq's weapons of mass destruction, was quoted in the New Yorker as saying. "It is clear that Russia is making a serious effort to control events. Saddam will get a bomb, because these materials are floating in. Every day, they are more advanced." …."

New York Times 3/27/99 James Risen "…The F.B.I. has found and questioned a Chinese researcher in connection with the inquiry into China's suspected theft of American nuclear secrets from the Los Alamos National Laboratory, Government officials said Friday. The researcher, a Chinese man who worked at Los Alamos for several months in 1997, was located by the Federal Bureau of Investigation on Thursday at Pennsylvania State University, the officials said. ….The F.B.I. lost track of him in the later stages of its investigation into Lee…. The F.B.I. opened its investigation in June 1996. In the midst of the furor over the Clinton Administration's handling of evidence of Chinese atomic espionage, the decisions to appoint Lee to the new post in 1997 and to allow him to hire a Chinese citizen as an assistant have raised troubling questions about the procedures that lab officials and the F.B.I. followed. The bureau approved Lee's new assignment, assuring the Energy Department, the lab owner, that it would seek a secret wiretap to monitor Lee's telephone conversations. But the Justice Department rejected the wiretap request, arguing that the evidence in the case was too old to justify it. ….."

On the DSL Timelines by Freeper IndiCrusade 3/29/99 IndiCrusade is a Los Alamos worker "…I've also noted recent press accounts alleging that security at the National Laboratories has been very lax. In order for that to be true, it would have to be very selectively lax. Those I work with are under scutiny allways, in fact I've been told to expect that my use of the computer can be monitored for "key" words, and certainly for hits at certain web sites (haven't been forbidden to visit FR - yet). As I told you last week, there are plenty of good patriotic people here and at other DOE sites. I would be willing to take my concerns before Congress, or go public at some point, provided the information I give is not sensitive (I really don't have much of that, anyway). What you need to understand is that much like the military or SS, DOE employees who value their livlihood are going to be reluctant volunteers to speak out. It goes against the culture and design of national security. We also have an energy secretary who has been influencing Los Alamos for years,and has been close to Clinton and the House Democrats almost as long. I've had one episode with him years ago, and he's tough. A few public record things I can add to your timelines, for whatever they may be worth: On May 17, 1993, the Clintons, Congressman Richardson, DOE Secretary O'Leary (among others)visited Los Alamos, rather unexpectedly. This was the famous trip that also included the haircut on Air Force One. Soon after that, as I recall, the laboratory laid off a number of long time workers (many later sued successfully to get rehired). I think Clinton also directed a formal (unilateral?) cessation to underground nuclear testing at the Nevada Test Site. Since then we have been limited to computer models and the like. Clinton again came to Los Alamos rather unexpectedly last year, I think it was in September of 1998. In the meantime, the Clintons and Al Gore have made numerous trips to Albuquerque (where there is another DOE laboratory). Some of these were campaign situations, but usually not. We've also been through several DOE secretaries since 1992. And throughout there has been a big can of worms under the umbrella of "safety issues". No matter what you do, nukes just aren't safe enough because people just aren't perfect enough…."

Washington Post 3/28/99 Walter Pincus Vernon Loeb "… Freeh in recent testimony before House and Senate Appropriations subcommittees provided the first authoritative on-the-record description of what has been going on from the administration's perspective. In 1995, he said, the FBI was asked to investigate "an incident that happened, they thought, between 1984 and 1988," and that may have involved information about what was then the newest U.S. nuclear warhead, the W-88. Freeh said what the FBI had to work from was a historic view that secret information originating at the Los Alamos National Laboratory may or may not have been passed "in the field of things like computational fluid dynamics," or computer modeling relative to the initial explosion in a nuclear weapon. The source of the allegation, according to other sources, was a 1988 Chinese government document on Beijing's nuclear weapons program from a "walk in" informant who turned it over to U.S. intelligence in 1995. That document, the sources said, contained references to information resembling the W-88 design, leading to suspicions that Chinese researchers had been supplied with U.S. secrets to speed up their own designs for miniaturized warheads….. By late 1996, therefore, Lee was a suspect. But because the FBI investigators could not find any unusual transfer of money to him, any physical evidence or motive, they were unable to get a court to authorize a wiretap on his home, sources said….. In August 1997, Freeh said, he told Department of Energy officials that there "was not sufficient evidence to make an arrest" and that DOE was to determine whether to keep Lee on since "the case was not as important as what damage he may continue to do by accessing information." DOE, with FBI approval, kept Lee on and the investigation continued until December 1998, when he was moved to a nonclassified area and polygraphed for the first time….. And, the director added, even if he had an "FBI agent sitting there we wouldn't know what they were talking about."…"

Los Alamos National Laboratory 4/5/99 Daily News Bulletin "...As part of the Laboratory 's efforts to further strengthen counterintelligence and cyber-security, the Laboratory today began a stand-down of all classified computing activities except for those necessary for safety and security purposes. The Los Alamos stand-down is coincident with similar measures taking place at Sandia and Livermore national laboratories...."

Security Report for 1997 and 1998 Sent to Congress 4/5/99"... Secretary Richardson today sent to Congress the U.S. Department of Energy's (DOE) Annual Report on Safeguards and Security at its nuclear weapons facilities. Secretary Richardson also authorized the release of an unclassified version of the report and outlined a series of measures being taken to strengthen departmental security...."

The Washinton Post via NewsMax 4/1/99 John F. Harris "...The warnings were there for President Clinton. For weeks before the NATO air campaign against Yugoslavia, sources said, CIA Director George J. Tenet had been forecasting that Serb-led Yugoslav forces might respond by accelerating their campaign of ethnic cleansing in the province of Kosovo -- precisely the outcome that has unfolded over the past week. All during this time, U.S. military leaders were offering Clinton a corresponding assessment of their own. If the Serbs did launch such an assault, they said, air power alone would not be sufficient to stop it -- precisely the analysis that NATO's supreme commander, Gen. Wesley K. Clark, articulated publicly this week when asked what the military could do to halt the humanitarian disaster unfolding in the Balkans. But in the face of this advice, according to a variety of U.S. and European sources familiar with the decision-making, Clinton and his senior White House advisers pressed on with their planning for an air campaign. The group, participants said, never reassessed the fundamental judgment they had reached the previous fall, which ruled out the use of ground troops as a way of protecting Kosovo's majority Albanian population from a brutal crackdown by the Serbs...."

WorldNetDaily 4/6/99 Joseph Farah "….Top-secret CIA briefings obtained by WorldNetDaily show U.S. intelligence analysts predicted that NATO bombing raids would prompt Serbian President Slobodan Milosevic to launch a major offensive against ethnic Albanians in Kosovo…..The documents were provided by a senior intelligence officer on condition of anonymity who said the briefings from last month underscore "the failed strategy of the Clinton administration in the Balkans." The mid-March briefings, issued more than a week before the bombing campaign began, accurately predicted a chain of events unfolding in the Balkans in the last two weeks. The briefings, read by thousands of American intelligence analysts, attaches, senior Defense Department officials and the White House, concluded: * Milosevic had little to lose by initiating a full-scale offensive against Kosovo's Albanians; * Belgrade had sufficient forces in place before the bombing to conduct a serious offensive; * A senior Serb army commander stated openly that he would attack immediately if NATO bombed; * The Serb army would use brutal tactics to kill as many insurgents and their supporters as possible; * A Serb offensive would produce a new flood of refugees, triggering a humanitarian crisis; "The president and his senior advisers knew these risks going in -- yet they elected to pursue their strategy anyway," said the senior intelligence officer. "From a military perspective, this is the geopolitical equivalent of a World War I frontal attack…. The CIA briefing of March 19 also suggested that Moscow was growing frustrated with Belgrade before the NATO bombing raids. Russian officials were, according to the documents, prepared to allow the United Nations Security Council to authorize a NATO show of force, if Milosevic launched an offensive first. After the NATO attacks, Russia sided strongly with Belgrade, condemning NATO's bombing runs in the harshest language. The CIA's predictions on the Serb reaction to bombing was strikingly accurate: "The army's tactics in Bosnia and in earlier Kosovo fighting suggest it would use large-scale shelling by artillery and armor to kill as many insurgents -- and their civilian supporters -- as possible while minimizing its own casualties. The army might launch attacks into Albania in an effort to destroy UCK (Kosovo Liberation Army) safehavens." "This fighting," said the report, "preceded by the withdrawal of international relief agencies, could leave the 300,000 people who rely on food aid vulnerable to malnutrition within about two weeks. The 230,000 ethnic Albanians displaced by previous fighting -- together with the tens of thousands who will take to the roads once the new round begins -- would flee toward Albania and Macedonia, creating a humanitarian crisis in those countries." …"

Associated Press 4/7/99 "…On Tuesday, Macedonia's prime minister, Ljubco Georgievski, had called NATO ``completely irresponsible'' for ignoring warnings that airstrikes on Yugoslavia could trigger a humanitarian disaster. Anti-NATO resentment has been growing among Macedonian nationalists who are angry over both the airstrikes against fellow Orthodox Serbs and the inflow of refugees, who are mainly Muslim…."

National Post 4/7/99 Peter Goodspeed "…Despite the protestations of Lloyd Axworthy, the Foreign Minister, and other NATO leaders that they could not foresee the massive ethnic cleansing of Kosovo, U.S. newspaper reports indicate NATO officials were warned weeks ahead of time that military action against Yugoslavia might well unleash a bloodbath. While the western alliance was still pondering its war plans last October and tentatively studying proposals for both an air and ground war against Yugoslavia, U.S. intelligence officials are said to have predicted the mass human exodus that has now occurred. Weeks before the NATO air campaign began, George Tenet, the director of the Central Intelligence Agency, forecast that Serb-led Yugoslav forces might respond by accelerating their campaign of ethnic cleansing in Kosovo, the Washington Post reported. Quoting sources within the American administration, the newspaper says CIA officials repeatedly raised the possibility of an expanded Serbian ethnic-cleansing campaign if the West threatened Belgrade militarily. When Bill Clinton, the U.S. president, was presented with a military report last October that warned him a ground war in Yugoslavia would require as many as 200,000 NATO troops, an accompanying CIA study predicted two possible outcomes -- a stepped-up campaign of ethnic cleansing against Kosovo's ethnic Albanians, or a quick yielding by Yugoslavia once force was applied. Mr. Tenet apparently repeated the CIA's warnings in congressional hearings in early February. At the same time, The New York Times reports that "Pentagon planners . . . said they warned the administration publicly and privately that Mr. Milosevic was likely to strike out viciously against the Kosovo Albanians . . ." U.S. military leaders are said to have expressed deep reservations about the Clinton administration's approach to Kosovo and repeatedly warned the White House that if the Serbs did launch a final all-out assault on Kosovo's Albanians, air power alone would not be sufficient to stop it…."This outcome was guaranteed by the public announcements by President Clinton that ground troops would not be committed," he added…."

Washington Post 4/13/99 Walter Pincus "...The Department of Energy official who has pressed hardest for action against alleged Chinese spying at nuclear laboratories declared yesterday that his superiors at the department, rather than the Clinton White House, blocked his efforts to tighten security and have a suspect lab employee lose access to secret material. ...But Trulock, DOE's former acting head of intelligence, said President Clinton, in a presidential decision paper in February 1998, adopted reforms that top DOE officials opposed. The most controversial elements, he said, were creation of independent offices in DOE for intelligence and counterintelligence, giving the offices more power through direct access to the secretary of energy and giving them ultimate control over security at all DOE facilities. Those opposing the reforms, Trulock said, were then-Deputy Secretary Elizabeth Moler and an assistant secretary, along with his deputy, who were directly in charge of weapons research.... Trulock, in his testimony, criticized the officials in particular for failing in 1997 to remove Wen Ho Lee, the suspect Los Alamos employee, from access to classified materials, even after FBI Director Louis J. Freeh twice said there was no further need to keep him on his classified job as a way to catch him in the act. "For another 14 months after these warnings," Trulock told the senators, there was continued access to classified information. "I am not sure that we will ever know how much damage has been done to U.S. national security as a result of this inaction." He also accused the DOE officials of trying to bury his findings of possible espionage to protect the budgets of the laboratories before Congress and continued lab-to-lab relations with research facilities in Russia and China. But Trulock's toughest criticism was leveled against the nuclear laboratories themselves, some of which are operated for DOE by the University of California. His experience, he said, raises questions about the "credibility of the laboratories." "They respond with vague and evasive answers and they occasionally lie in response to our legitimate inquiries," he complained...."

Los Angeles Times 4/13/99 Robert Scheer "...Twenty-thousand nuclear weapons left over from the Cold War still stand poised for launching, and the MAD doctrine that guided them is very much in force. Neither the U.S. nor Russia has abandoned nuclear war fighting as the cornerstone of their respective national defense policies. "We still target them with nuclear weapons on hair-trigger alert," Butler observed. "The world truly has been transformed, but what has not been transformed is our thinking about it." Russia's political and economic disintegration now threatens our security more by inadvertence than by design, prompting key Cold War military establishment veterans like Butler to sound the alarm: "The Russian command and early warning system is in a state of great decline; about two-thirds of the satellites they relied on for early warning capability are inactive or failing. They're experiencing false alarms now on almost a routine basis, and I shudder to think about the morale and discipline of their rocket forces. There are worrisome aspects to all of that. That's why people like myself are so puzzled and dismayed that our government won't even address the problem." Addressing the problem requires bold leadership on nuclear disarmament that's been sadly lacking in the Clinton years. There have been some cosmetic arrangements with the Russians as to nuclear safety and targeting issues but no real follow-up on arms control measures aggressively pursued by George Bush. Give credit where due: Bush recognized that the end of the Cold War permitted--nay, mandated--that the U.S. set an example by reducing the size and lowering the alert status of its nuclear force. As Butler recalls, "The single most important arms controls were George Bush's unilateral measures back in 1991, which took all of the tactical nuclear weapons off the ships and brought many back from Europe, took the bombers off alert and accelerated the retirement of the Minuteman II force. And Mikhail Gorbachev followed suit. It's ironic that today we have a Republican Congress that thwarts arms control progress, and yet it was a Republican administration that really moved the ball down the field." Clinton has never been very interested in nuclear disarmament, and these days seems bent on alarming the Russian leadership by expanding NATO's membership and military role in Eastern Europe, including a NATO-led war against Russia's neighbor, Yugoslavia.... Boris Yeltsin has his flaws, but humiliating him and undermining more moderate forces in Russia is the path of disaster. In 1995, Yeltsin was awakened in the middle of the night because one branch of his crumbling military had failed to inform another of prior knowledge of a Norwegian rocket launch, which they confused with a U.S. Trident missile. Fortunately, this error was corrected before Yeltsin's 12 minutes of decision-making passed. No wonder Butler is concerned...."

Colorado Springs Gazette-Telegraph 4/6/99 Freeper Stand Watch Listen "...EXCERPTS "But by any reasonable standard, America's latest round of airstrikes - the U.S. just bombed Iraq last week and in the past few months has fired missiles at Sudanese and Afghan targets - isn't paying off. What seems starkly apparent is that the administration didn't adequately consider all the ramifications of its action and now must muddle through as disturbing events unfold. The CIA warned the president last month that airstrikes might give the Yugoslavs cover to intensify ethnic cleansing of Kosovar Albanian villages, The Washington Post reported last week. And military officials, the Post wrote, also warned Clinton that airstrikes would not be sufficient to turn back any such ground assault in Kosovo. ......Another unforeseen problem: the perils of bolstering the Kosovo Liberation Army - the ragtag guerilla group that has, in essence, become a NATO ally. The KLA reportedly has Marxist origins as well as ties to Middle Eastern Islamic radicals - which may be raising funds through the heroin trade..."

New Republic 4/19/99 Jason Zengerle "...To that end, PLA officers get escorted around some of America's most modern military facilities. They've toured the U.S.'s most advanced guided missile cruiser and a nuclear attack submarine. They've also watched a Marine amphibious landing and observed Cope Thunder, the U.S. Air Force's sophisticated air combat exercises in Alaska. When PLA officers fly into Fort Hood in Texas, the Pentagon makes sure that they pass over an impressive two-and-a-half-mile stretch of M-1A1 tanks. "That sends a very impressive signal," boasts an administration official. And PLA officers apparently get that signal: Pillsbury notes a more respectful tone in the writings of PLA officers who have visited the United States. But, at the same time that the United States is showing off its massive strength, it's also giving the Chinese a peek at vulnerabilities. For instance, at the Cope Thunder exercises--designed to highlight America's air superiority--the Chinese saw the American dependence on satellites, digital systems, and AWACS aircraft. Accordingly, China is now seeking means to attack American satellites and otherwise disrupt communications. Similarly, it has recently been learned that China is seeking to purchase Russian-made torpedoes that are specifically designed--you guessed it--to explode underneath ships. ..."

Department of Energy: DOE Needs to Improve Controls Over Foreign Visitors to Weapons Laboratories (Chapter Report, 09/25/97, GAO/RCED-97-229). "Data on foreign visitors from individual sensitive countries also showed significant differences among the laboratories. For example,46 percent of the Russian visitors to Livermore were checked during that 3-year period, compared to 10 and 7 percent, respectively, for Los Alamos and Sandia. Furthermore, 39 percent of the Chinese visitors to Livermore were checked, compared to 2 and 1 percent, respectively, for Los Alamos and Sandia. (See app. III for numbersand percentages for all sensitive countries.)"

"Of the 746 foreign visitors from China to the Los Alamos Research Laboratory, only 12 received background checks"..."Moreover, we noted during our review that people with suspected foreign intelligence connections were let into the laboratories without background checks. We were able to document 13 instances where persons with suspected foreign intelligence connections were allowed access without background checks--8 visitors went to LosAlamos and 5 went to Sandia--during the 1994 through 1996 period...."At both Los Alamos and Sandia, unescorted after-hours access to controlled areas has been permitted. These laboratories have required the host to monitor the foreign visitor--that is, be awareof the foreign visitor's location and activities--but not necessarily be physically present. Recently, Sandia revised its after-hours access policy. In November 1996, Sandia no longer allowed foreign nationals to have unescorted after-hours access to controlled areas without the approval of its counterintelligence office. According to Sandia and DOE officials, this change was made because of the potential for security problems that could result from unescorted access. Los Alamos, however, continues to allow unescorted after-hours access to preserve what one official described as an open"campus atmosphere" for researchers at its facilities. "..."

Department of Energy: DOE Needs to Improve Controls Over Foreign Visitors to Weapons Laboratories (Chapter Report, 09/25/97, GAO/RCED-97-229) "Finally, neither Los Alamos nor Sandia has developed security plans--even generic ones--for foreign nationals who will be in controlled areas. The DOE order governing unclassified foreign visits and assignments identifies security plans as the basic means by which vital information is protected and requires they be developed. However, DOE and laboratory officials told us that because of the exception granted by DOE to these two laboratories--which also streamlined requirements for background checks and visit approvals--security plans are no longer required for visits to controlled areas. Livermore has not sought such an exception and requires a generic security plan for all foreign visitors to its controlled areas."..."

ROBERT NOVAK SUN-TIMES COLUMNIST 4/8/99 "... I received a call March 23 from a national security source who told me of secret U.S. intelligence that Serb forces were prepared to abduct American troops stationed in Macedonia. I could not confirm the tip, and besides, it seemed inconceivable that the U.S. military would permit this to happen. Wrong indeed. On March 31, three American soldiers were seized along the Macedonia-Kosovo border in an incident drenched with ambiguity and mystery. Sen. John Warner, the Republican chairman of the Senate Armed Services Committee, has departed from his steadfast support of the U.S.-NATO attacks on Yugoslavia to raise serious questions about what in the world the American troops were doing the day they were taken prisoner. No answers have been given to Warner, but the most haunting question is unasked: Why was the intelligence report on the danger of abduction ignored? The chairman, a former secretary of the Navy and a stalwart friend of the military, did not ask simply because he did not know. The warning was not shared with him...."

Date: 4/9/99 Author: Paul Sperry Investor's Business Daily "...The administration waited until last month to fire the alleged spy - only after the press broke the story. It hasn't yet charged him with any wrongdoing. More, the White House didn't order the labs to beef up security until last year. Why didn't officials give the case top priority? Some suspect it conflicted with a higher priority: Selling the global test ban to China and other nuclear states. ''They wanted to get them on board by exchanging this new (virtual-testing) technology in the spirit of scientific fraternity and openness,'' said former Reagan Defense official Frank Gaffney. In the process, he says, the labs have left themselves open to espionage by countries like China that remain hell- bent on making their nuclear missile arsenals more, not less, lethal. ''In creating much more of an academic environment, the labs probably went too far - at least more than makes old weapons guys comfortable,'' said Troy Wade, a former Reagan Energy official in charge of nuclear weapons. An ex-O'Leary aide said her open-door policy angered some Pentagon officials who ''feared security breaches.'' Looking back, he says, they were right. Clinton, who stands by his denuclearization policy, argues that the Los Alamos leak predated his watch. He said ''security procedures were too weak for years and years and years.'' .....But former officials note the problems accelerated under Clinton. Recent GAO and internal Energy reports concur. ''What's happened over the past six years makes the sort of generic problems we've always had with the labs pale by comparison,'' said Gaffney, who specialized in arms control policy at the Pentagon and now heads the Center for Security Policy in Washington.

Investor's Business Daily 4/12/99 Paul Sperry "…At the same time China builds more lethal nuclear missiles - using U.S. technology - America's nuclear arsenal collects dust. It's been 10 years since the nation built a new missile, and seven since it tested old ones….In fact, the Pentagon can't be sure existing missiles even work. And it won't be sure until around 2010, when weapons testing is scheduled to resume. Even then it's iffy. Scientists at the nation's nuclear labs won't be able to blow up bombs in the Nevada desert to spot bugs and perfect designs as they've done for 50 years. President Clinton banned that for ''virtual testing,'' which uses computers to simulate detonations. But virtual testing is itself virtual. At this point, it's just a theory. Scientists will need another 10 years - and billions of dollars in new equipment -to come up with the massive number of computations to mimic a real nuclear blast. All this worries some national security experts. They fear the administration hasn't taken post-Cold War nuclear threats seriously enough. As America's nuclear edge grows duller by the day, they point out, China's gets sharper…. By not testing, ''you also preclude the introduction of new weapons into the inventory,'' Gaffney added. It's just too risky to mix untried designs into the arsenal, he explains. "

4/10/99 Freeper Yaya123 "…Elizabeth M. Moler was personally responsible for stiffing the Cox committee. Now Bill Cohen is nominating her to be Secretary of the Air Force….. Read the following NYTIMES article to understand why Elizabeth Moler must not be the next Sec. of the Air Force: NYTIMES, March 6....""In July 1998, the House Intelligence Committee requested an update on the case, officials said. Trulock forwarded the request in a memo to, and in conversations with, Elizabeth Moler, then acting energy secretary. Ms. Moler ordered him not to brief the House panel for fear that the information would be used to attack the president's China policy, according to an account he later gave congressional investigators. Ms. Moler, now a Washington lawyer, says she does not remember the request to allow Trulock to brief Congress and denies delaying the process. In October, Ms. Moler, then deputy secretary, stopped Trulock from delivering written testimony on espionage activities in the labs to a closed session of the House National SecurityCommittee. Ms. Moler told Trulock to rewrite his testimony to limit it to the announced subject of the hearing, foreign visitors to the labs, an Energy Department spokeswoman said. The issue came up nonetheless when committee members asked follow-up questions, Energy Department officials said. Key lawmakers began to learn about the extent of the Chinese theft of U.S. nuclear secrets late in 1998, when a selectcommittee investigating the transfers of sensitive U.S. technology to China, chaired by Rep. Christopher Cox, R-Calif., heard from Trulock…."

WorldNet Daily 4/12/99 Geoff Metcalf "... To compound the sin of the Clinton administration, the "unintended consequences" were forewarned. The CIA and the Pentagon both provided advice and counsel that could and should have prevented what could turn into World War III. However, notwithstanding the lessons which SHOULD have been learned from failing to accept advice from experts, the arrogant, myopic bumblers again rejected the counsel of the professionals -- and now seem surprised. John Ruskin once said, "Without seeking, truth cannot be known at all. It can neither be declared from pulpits, nor set down in articles, nor in any wise prepared and sold in packages ready for use. Truth must be ground for every man by itself out of it such, with such help as he can get, indeed, but not without stern labor of his own." Truth has become the first casualty of this NATO aggression. Once again, we see petty myopia obfuscating reality and common (regrettably all too uncommon) sense. Seeking truth has become an almost impossible task. I saw a chilling headline recently that stated, "The Fourth Estate has become the Fifth Column." Mainstream media has become a co-conspirator with the administration to shape, mold, and spin information, which is designed to defend, rationalize and validate policy, and action which is bad, wrong, and probably criminal..... Conversely, in this modern age of instant communication, commanders have the added challenge of denying combat intelligence to the bad guys. Hell, Saddam Hussein was sitting in his bunker watching CNN for contemporaneous combat intelligence. The grinding out of truth is becoming increasingly difficult. OUR media underreports bad news. Daily, (through the Internet) we are exposed to Greek newspapers overstating casualties. All the time, the elusive truth languishes somewhere between the yin and yang. The tragedy of the Balkans is real. However, it has been, is, and will sadly continue. Regarding those who "don't want to be confused with facts which contradict their preconceived opinions," it should be noted that the Serbian/Ethnic Albanian conflict is in reality merely an extension of the Crusades. However, this time, the defensive NATO, has for the first time in its 50-year history, acted as the aggressor, AND has allied in a religious war against the Christians. Even Cecil Rhodes and Clinton's old Professor Carroll Quigley have to be rolling in their graves over this brain flatulence masquerading as policy....."

AP Jim Abrams 4/15/99 "...Energy Department officials acknowledged Thursday they withheld information from a House subcommittee last fall on an alleged Chinese spying case. A department intelligence officer said he was told by the deputy energy secretary not to talk about the case, a charge the senior agency official denied. ``We are very upset,'' said Rep. Duncan Hunter, R-Calif., chairman of the House Armed Services military procurement subcommittee. He said the two officials, testifying under oath in a closed session in October, dodged specific questions about spying activities at the department's national weapons laboratories. ``I apologize,'' said Notra Trulock, the agency's special adviser for intelligence. He said he acted at the behest of then-Deputy Secretary Elizabeth Moler, who also testified at the hearing, when he did not discuss the investigation into possible Chinese espionage at the Los Alamos National Laboratory in New Mexico. Trulock said Moler also edited written testimony he had prepared for the hearing to delete references to counterintelligence operations. Moler denied editing the testimony and said she only instructed Trulock to limit his comments to the subject of the national labs' foreign visitor program. She said then-Secretary Federico Pena had decided that, because of the particularly sensitive nature of the case, briefings to Congress should be limited to the House and Senate intelligence committees. She said that was a common practice and that she had advised Trulock to follow that policy. ``With the benefit of hindsight, we should have been more responsive,'' she said. ..."

Executive Order 13117 4/5/99 Vol 64 Number 64 Clinton "...Executive Order 13117 of March 31, 1999 Further Amendment to Executive Order 12981, as Amended By the authority vested in me as President by the Constitution and the laws of the United States of America and in order to further the implementation of the reorganization of the Arms Control and Disarmament Agency (ACDA) into the Department of State, in this instance by eliminating ACDA's vote on dual-use export license decisions in the administration of export controls, it is hereby ordered that Executive Order 12981, as amended (``Executive Order 12981''), is further amended as follows..."

The New Yorker (via www.jya.com) 4/5/99 Seymour Hersh "...Last December, after Saddam Hussein threatened to end seven years of United Nations arms-control inspections, President Clinton ordered American attacks on Iraq. Once again, the world watched, on television, as missiles fell on carefully picked targets. The purpose of the attacks, Clinton told reporters, was to "degrade" Iraq's capacity for waging war, and he added, "I gave the order because I believe we cannot allow Saddam Hussein to dismantle UNSCOM and resume the production of weapons of mass destruction with impunity." The President was mistaken. The United Nations Special Commission for Iraq, known as UNSCOM, had already been effectively dismantled, by the shortsighted policies of his own Administration. Then, a few hours after Clinton spoke, William Cohen, the Secretary of Defense, appeared on television. "One thing should be absolutely clear," he told reporters. "We are concentrating on military targets." That, too, was a misstatement, for two of the targets were sites where Saddam was known to entertain mistresses, and they were specifically struck in the hope of assassinating him. Saddam responded to the bombing--and the bungled assassination attempt--by formally ousting UNSCOM and turning anew to Russia, historically his most important trading partner. Today, eight years after the Gulf War, American policy has collapsed in Iraq, and a Cold War mentality has returned. Saddam is unchecked by U.N. inspectors as he pursues his goal of becoming a nuclear power, with the aid of Russian strategic materials. Saddam's ally in these efforts is Yevgeny Primakov, the Russian Prime Minister, a longtime friend who, according to highly classified communications intelligence, received at least one large payment from Iraq--by wire transfer--in November of 1997. The distrust of Primakov throughout the American intelligence community is acute. One former C.I.A. operative told me, "I don't know how many times we had to say this to Strobe"--Strobe Talbott, the Deputy Secretary of State--"but Primakov is just not a good guy." ..."

The Guardian (UK) 4/19/99 Julian Borger Richard Norton-Taylor "... Evidence emerging on both sides of the Atlantic yesterday showed that Nato entered the Kosovo conflict critically underestimating Serbian resolve in the face of Nato airstrikes, which now appear to be nowhere near achieving their objectives. CIA assessments before the bombing began predicted that President Slobodan Milosevic would give in at the first show of hi-tech military might. Leaked US documents show that US intelligence underestimated the Serbian leader's tenacity. A report in January that drew together intelligence gathered by various agencies under the patronage of the CIA gave the upbeat conclusion that Mr Milosevic had no stomach for a war that he could not win. 'After enough of a defence to sustain his honour and assuage his backers he will quickly sue for peace,' it said...."

Freeper Sawdrig 4/23/99 MENL reports "...Scientists from Iran and Iraq, countries believed to be seeking intermediate ballistic missile and nuclear weapons, are permitted to tour leading U.S. weapons laboratories, a House chairman says. Fred Upton, chairman of the House Commerce Committee Oversight and Investigations subcommittee, said he was stunned by testimony over the ease in which foreign scientists are allowed access to facilities and information that will help the weapons program of nations hostile to the United States. "I must say that one particular area stands out in my mind," Upton said in a Tuesday hearing, "the fact that thousands of foreign scientists from countries such as China, Cuba, Iran, and Iraq are permitted to visit our most sensitive weapon laboratories and have fairly unrestricted exchanges with our scientists -- including those working on matters that, while technically unclassified, are immensely useful to the weapon programs of foreign nations with potentially hostile intent towards the United States or its friends and allies around the world." ...."

Capitol Hill Blue 4/19/99 Doug Thompson "...Senior Pentagon officials have warned President Clinton his Kosovo war is destined to turn into a long conflict that could end up costing the United States more than $100 billion along with hundreds -- perhaps thousands -- of American casualties, military sources say. Budget planners are also warning Clinton that a prolonged, expensive war could wipe out the federal budget surplus, threaten the solvency of Social Security and plunge the country into a recession. Although Clinton is asking Congress for $5.9 billion in emergency spending for the Kosovo war, the real cost will be more than 20 times that.....Among the projections presented to the White House: A combined air-ground campaign lasting two-to-five years at a cost of more than $100 billion; Increased American casualties in a ground conflict ranging from "several hundred" to "several thousand;" An increasing possibility that some NATO allies(such as France and Italy) could drop out of the coalition, leaving the U.S. and Britain to fight the war alone; An increasing possibility that Russia could enter the war on Yugoslavia's side; No guarantees that, even with ground troops, the war could be won. Military experts dismissed claims by Assistant Secretary of Defense Strobe Talbot Sunday that the Kosovo war is winnable in the air. "Talbot is spinning," says intelligence analyst Sander Owen. "The White House was told from the beginning this thing couldn't be won in the air."....Owen said the US has few options left...."

PRNewswire 4/25/99 "...According to the Energy Department's own figures, the country's nuclear facilities have lost track of more than 5,000 pounds -- two and a half tons -- of plutonium, and at the Rocky Flats weapons factory near Denver alone, officials acknowledge to Newsweek, some 2,400 pounds of plutonium is unaccounted for. Newsweek has also learned that Rocky Flats failed a sophisticated computer program designed to simulate terrorist attacks against each of the country's nuclear labs. Other facilities, including Los Alamos and Lawrence Livermore National Laboratory, also fared poorly on security checks.....The Energy Department suggests that "inventory differences," the result of the material getting stuck in pipes and manufacturing tools, are responsible for the missing plutonium. Even so, the Department's latest declassified report rated security at three prominent installations -- Los Alamos, Lawrence Livermore and Oak Ridge -- as "marginal," providing only "questionable assurance" that the material was safeguarded closely enough. In the words of a former security agent at one of the nuclear labs, protective measures at Rocky Flats were so lax, "it [was] like having a window in a bank vault."....In 80 percent of the simulations, the attackers were able to get through the razor wire and security checks and walk out with enough plutonium to build a nuclear bomb -- or poison millions of people with the radioactive dust...."

The American Spectator 5/99 Kenneth R. Timmerman "...One of the more shocking details I uncovered in my investigation of China's California networks was that a front company owned by the PLA's largest weapons manufacturer had set up shop directly above the CIA office responsible for contacts with U.S. aerospace manufacturers in the Los Angeles area, where some of the agency's most secret projects have been developed. The Chinese operated there for more than two years without the CIA ever knowing, U.S. law enforcement officers in the L.A. area told me. Given what we are now beginning to learn from the W-88 spy case, this monumental security lapse seems not an accident but a natural consequence of the Clinton administration policy. Deputy National Security Advisor Gary Samore, the official put in charge of the W-88 investigation at the White House, revealed the administration's attitude to Chinese spying when he spoke to a group of national security experts and reporters at the Carnegie Endowment in Washington, D.C. on March 17. "China's strategic capabilities are quite limited," and include "less than two dozen long-range systems" capable of reaching the United States, Samore explained. "But if our policy convinces China that we are a threat, then that increases the possibility that China will devote the resources to significantly expand their strategic capabilities, and it is not in our interest to see that happen." The priority, then, is reassuring China, not protecting our military secrets. ..."

AP 4/27/99 Michelle Williams "...Energy Secretary Bill Richardson says security has been improved at U.S. nuclear facilities and should prevent any more classified information about nuclear weapons from reaching the Chinese..... Richardson acknowledged that security had been lax at U.S. nuclear facilities over the past few years, despite a presidential directive to tighten it. ``Secrets were compromised,'' said Richardson, who became energy secretary last August. ``They were compromised and accelerated China's nuclear development.'' He said that kind of information theft ``will not happen again.'' Scientists who work on sensitive weapons now undergo polygraph tests; the counter-intelligence budget has tripled over the past few years, and background checks are required on scientists from sensitive countries, he said. Two weeks ago, Richardson said, he ordered a shutdown of DOE computers linked to nuclear weapons information so that their security could be measured and upgraded....."

Freeper ohmlaw98 4/29/99 reports on Los Alamos National Lab Director John Browne answers employee questions. EMPLOYEE Q. #3: There has been a great deal of publicity recently on the "Theft of the Secrets of the W88." Many of us wonder what happened, and what we can do to prevent this kind of thing happening again. Are there things that we should be on the lookout for to prevent this sort of thing happening again. Is there any way, without compromising security, that you can have a briefing, either classified or unclassified, to bring LANL employees up to speed on this? DIRECTOR BROWNE: I appreciate your concern. In the meantime, I sent an All-Employee memo on March 16 regarding this situation and we had an open meeting with DOE Undersecretary Moniz and his colleagues on March 19, which was followed by a press conference that was carried live on Labnet. More recently, there have been all-employees memos on computer security and foreign travel to sensitive countries. Your question about what we can do to prevent this kind of thing happening again is more difficult to answer. Although there have been recent media accounts alleging "lax security" and possible espionage activities at Los Alamos, this situation involves a classified Congressional report and an ongoing Federal investigation, so we cannot really know at this time what the status of this situation is. Thus there is not a lot of specific information I can share with you. However, I can give you some general advice: Attend the annual security briefings so you keep up to date on security issues, and if you see something that makes you feel uncomfortable with respect to security don't hesitate to discuss it with your supervisor or refer it to the appropriate security office. Thank you for your interest; this is a serious issue for all of us. (Question received 3/10/99)..." ohmlaw98 asks "...Why has the director of the lab not been briefed on the status of the situation?..."

Washington Weekly 5/2/99 RICKI MAGNUSSEN AND MARVIN LEE "...QUESTION: So you think that Clinton is close to the Chinese military? TIMPERLAKE: think the Chinese military penetrated to the highest level of the Clinton administration including the White House. QUESTION: But the question is if president Clinton is an innocent, ignorant victim, or is he actually working on their behalf? TIMPERLAKE: Here it comes: Ng Lap Sen, A communist Chinese official who also owns the Fortuna hotel in Macao and wired millions to Charlie Trie showed up not only in the White House but in the White House residence. Now that's a powerful statement. A communist Chinese official gangster wiring millions, his minion is a gangster who offered a bribe to the president through the president's legal defense fund. Two days after Ng Lap Sen enters the country with $75,000 in cash he's in the residence of the White House. So president Clinton has no willful blindness or deniability. He was there, he met with the fellow apparently six additional times. QUESTION: But the question is if he really knew who this was? TIMPERLAKE: Well, here's the argument: the Secret Service has as their sacred trust to protect the integrity and security of the President of the United States and the security of our leader, I mean the Commander-in-Chief. They would have to have known who this person was. There's no doubt in my mind that they knew exactly who this person was and the only person who could clear him in was the President of The United States. That's it. QUESTION: So you think that president Clinton is actually working on their behalf. TIMPERLAKE: He actually cleared this person in, because I trust the integrity and judgment of the FBI and the Secret Service. Here's the rule: Intelligence goes up and out, that's the rule of intelligence. When you get it, it goes up through the chain of command and out to the users, that's how it is. I trust the integrity of the FBI and the Secret Service. They would do due diligence, they are not weak on that, and they would brief the president or the people around him, on how bad these people were....."

The Center for Security Policy 4/26/99 No. 99-D 48 "...On 17 April 1995, President Clinton lent his authority to an "openness" initiative championed by Mrs. O'Leary, the current White House Chief of Staff, John Podesta, and then-NSC staffer Morton Halperin(3) with his signature of Executive Order 12958. This order called for the automatic declassification by 17 April 2000 of all documents containing historical information that are 25 years or older...... The practical effect of Executive Order 12958, however, has been greatly to abbreviate the time and necessarily to diminish the care with which classified documents are scrutinized prior to their release to the public. Leading Senators were horrified to learn last year that Restricted Data (and "Formerly Restricted Data") governed by the Atomic Energy Act were being hastily thrown out with the bath-water as officials were not being given the time or resources to declassify sensitive documents on a page-by-page basis.(4) Instead, it had to be done by the box, if not by the shelf. Mr. Podesta, apparently infuriated at any interference with the declassification initiative, instructed Secretary Richardson to have Ms. Gottemoeller reprimand a senior DOE bureaucrat, Joseph Mahaley, for encouraging Congress to intervene. (The personnel action -- which would, among other things, have denied Mr. Mahaley an expected performance bonus -- was quietly withdrawn after he threatened legal action.) ..."

The Center for Security Policy 4/26/99 No. 99-D 48 "...Among those who has had the unenviable task of dealing with the deleterious consequences of this sort of security malpractice is Notra Trulock. Until the Cox committee's findings about Chinese espionage at Los Alamos came to light, Mr. Trulock was Chief of Intelligence at DOE. When his years of warning about the penetration of some of the United States' most sensitive facilities -- warnings that were suppressed by, among other superiors, Rose Gottemoeller, to whom the intelligence office reported until a reorganization last Fall -- were publicly vindicated, Mr. Trulock was demoted and his future at the Department seems in jeopardy..... Just last week, Assistant Secretary Gottemoeller took another personnel action, this time against Edward McCallum, a retired Army colonel who heads DOE's Office of Security and Safeguards. In that capacity, he has worked tirelessly to call attention, including in unclassified official reports, to the dangerous decline in the security of critical sites in the U.S. nuclear weapons complex. Apparently panicked at the mounting evidence that Mr. McCallum's heretofore unheeded alarms were becoming a serious embarrassment to the Department of Energy, Ms. Gottemoeller summarily on 19 April effectively fired him. On the basis of transparently trumped up charges that Col. McCallum, of all people, was handling classified information indiscreetly, Ms. Gottemoeller has placed him in the bureaucratic equivalent of limbo -- on indefinite, unappealable administrative leave with pay.

Washington Weekly 5/2/99 RICKI MAGNUSSEN AND MARVIN LEE "...QUESTION: Are you concerned that the most significant revelations will be redacted before release? TIMPERLAKE: It doesn't matter, you can assume the worst! It's all over! The worst has already happened. You have to work the worst case scenario. The People's Republic of China now has every nuclear secret America has and that's a serious issue! It's not only how to build the bombs, how to test the bombs, what happens when you go down the wrong path, what is the right path, what gets you strategically more "bang for your buck." No, it's all over, truly. The worst has happened. Bill Clinton on his watch stifled investigations, stepped on individuals, his administration stepped on these individuals who were trying to do the right thing and save the world and--I don't mean to be overly dramatic--but to save the world from some very nasty countries having access to nuclear secrets and the individuals who stepped up were told not to talk to congress. They were basically told that they couldn't present their case, they were discredited, they were demoted and that's a serious charge...."

The Center for Security Policy 4/26/99 No. 99-D 48 "...Lately, it seems that scarcely a day goes by without some new revelation about serious security problems at the Department of Energy (DOE) -- or the Clinton Administration's lack of seriousness about addressing them competently. Less obvious, but no less troubling, are the steps the Administration is taking to punish conscientious DOE employees who have been raising alarms about these problems. Much of the blame for the present mess appears to lie with President Clinton's first Secretary of Energy, Hazel O'Leary.(1) Mrs. O'Leary made no secret of her hostility to her Department's most important function -- maintaining the Nation's strategic deterrent and the thermonuclear weaponry that underpins it. While she has mercifully been gone from office for three years, the legacy of the gaggle of anti-nuclear activists O'Leary recruited to staff senior DOE positions and the "denuclearization" and "openness" policies that she and they promulgated together linger on. In fact, just last month, the current Secretary of Energy, Bill Richardson, succeeded in sneaking through the Senate the nomination of an advocate of the abolition of nuclear weapons to serve as Assistant Secretary for Nonproliferation and National Security. This dark-of-night operation is all the more outrageous in light of the mounting evidence that this appointee, Rose Gottemoeller,(2) is implicated in a number of the security scandals now coming to light -- and the personnel actions being taken against the whistle-blowers....Two further O'Leary "openness" initiatives contributed to the circumstances under which the penetration of U.S. nuclear facilities by Communist China, among others, has occurred during the present administration. ....First, Mrs. O'Leary banned personnel badges that clearly indicated whether the bearer had a security clearance and, if so, how high. Her reasoning: Such badges were discriminatory. And second, she ended the practice of requiring reports to DOE headquarters about foreign nationals from "sensitive countries" who visited the unclassified areas of the Nation's nuclear weapons laboratories....."

The Center for Security Policy 4/26/99 No. 99-D 48 "...On 17 April 1995, President Clinton lent his authority to an "openness" initiative championed by Mrs. O'Leary, the current White House Chief of Staff, John Podesta, and then-NSC staffer Morton Halperin(3) with his signature of Executive Order 12958. This order called for the automatic declassification by 17 April 2000 of all documents containing historical information that are 25 years or older......"

"Committee members grilled FBI Director Louis J. Freeh about why the 1982 call was not investigated further" v "After the FBI confronted Lee about the call, he cooperated with the agency and later passed a polygraph examination in which he denied involvement in any espionage activity, the official said." - Washington Post 5/2/99 Vernon Loeb "....

Washington Times 4/30/99 Editorial Board "..... For several years, the Justice Department obstructed the FBI's efforts to detect Mr. Lee's downloading activities Mr. Lee, who was fired in March, emerged more than three years ago as the primary suspect in an espionage case in which China acquired design information about America's most sophisticated nuclear warhead, the W-88, which is deployed on the Trident II submarine-launched ballistic missile...."

Washington Times 4/30/99 Editorial Board "..... Energy Department counterintelligence officials identified Mr. Lee as a major suspect in February 1996, noting that his travels to China made him stick out "like a sore thumb." For reasons that are virtually impossible to fathom, however, the FBI did not learn of Mr. Lee's massive downloading activities until last month, more than three years after he became the primary suspect in an espionage case that the CIA's chief of counterintelligence regarded as "far more damaging to national security than [Soviet spy] Aldrich Ames." ..."

Washington Times 4/30/99 Editorial Board "...Attorney General Reno's Justice Department is far more culpable for this catastrophic national-security debacle. Time and again, the New York Times reports, the Justice Department declined to pursue FBI requests for wiretaps. Under the Foreign Intelligence Surveillance Act, the Justice Department's Office of Intelligence Policy Review would have been required to petition a special court to obtain either a wiretap of Mr. Lee's phone or to gain surreptitious access to his office computer. Despite Mr. Lee's role as the principal espionage suspect, Miss Reno's Justice Department declined a 1997 FBI request for a wiretap and surreptitious access to Mr. Lee's office computer. Justice's Office of Intelligence Policy Review maintained there was insufficient evidence for it to seek the necessary court permission The FBI appealed that decision to Deputy Attorney General Eric Holder, the second-highest Justice Department official. Mr. Holder also denied the request to pursue the wiretaps...."

Washington Times 4/30/99 Editorial Board "...in 1997, while President Clinton was pursuing his "strategic partnership" with China, not only was the FBI investigating Chinese nuclear espionage but congressional committees and an incompetent Justice Department task force were investigating Mr. Clinton's 1996 re-election campaign and the Democratic Party for receiving laundered money from the Chinese Communist government. Miss Reno repeatedly refused to seek an independent counsel, despite a 1997 recommendation to do so by FBI Director Louis Freeh...."

Washington Times 4/30/99 Editorial Board "..... Meanwhile, her deputy and other Justice officials were refusing to act on FBI requests to obtain wiretaps that would have uncovered Mr. Lee's unauthorized downloading of the secrets of 50 years of U.S. nuclear-weapons development. Normally, the Justice Department favorably responds to FBI requests for such wiretaps in 99.9 percent of the 700 or so requests it receives each year. ...."

Washington Times 4/30/99 Editorial Board "....The FBI finally discovered the downloaded computer code after searching Mr. Lee's office computer last month. Within days of his March 8 firing and after he failed a lie-detector test, Mr. Lee gave the FBI permission to search his office computer...."

Washington Times 4/30/99 Editorial Board "..... Amazingly, however, even after the FBI made its startling discovery, the Justice Department delayed seeking court-ordered approval to search Mr. Lee's house. That search was finally conducted April 10, more than a month after Mr. Lee was fired...."

USA TODAY 5/1/99 AP "...Energy Secretary Bill Richardson said Friday a suspected spy for China at the Los Alamos National Laboratory should have had his access to top secrets taken away long before it was. ''It seems within the lab, within the Department of Energy there were some communication breakdowns as to why this individual was still pursuing security work of a sensitive nature at a time when there were suspicions about him,'' Richardson said..... Appearing on PBS' The News Hour with Jim Lehrer, Richardson said an internal investigation is trying to determine if government or lab officials should be disciplined because Lee was not moved sooner and stripped of his top security clearance..... Richardson said he knew of ''no evidence'' that any of the computer code data had been shipped via e-mail outside the Los Alamos facility in New Mexico but acknowledged it was theoretically possible. ''We have no evidence yet that China or anyone got this information. ...The evidence on that is not there,'' he said. Richardson. According to Richardson, most of the computer code transfers occurred in 1994-95 but some go back as far as 1983. He said it was ''a very serious violation'' but ''how serious we don't know'' - since there still is no certainty as to who may have seen the data...."

Mrc . org - Freeper enough is enough reports 5/1/99 "...CBS delivered an exclusive talk with three scientists at the Livermore national lab about lax security. Sharyl Attkisson began her April 28 report: "The scientists who spoke exclusively with CBS News, work at Lawrence Livermore in California, one of the labs where intelligence officials say the Chinese stole sensitive weapons data in recent years." Scientist: "Certainly in the last half of the 1990 there's been a significant change in the working atmosphere." Attkisson: "A loosening of security?" Scientist: "A general loosening, yes." But Attkisson didn't pursue the angle of the scientist's charge that security was loosened when Clinton entered office. In fact, she never referred to he administration or Clinton. Instead, Attkisson moved on, explaining how the two anonymous scientists have the highest security rating -- "Q-clearance." Attkisson detailed the lax security: "They say in the early '90s workers without a Q-clearance began getting access to buildings where classified work is done and still today the only security keeping non-Q workers away from sensitive areas is often no more than a 'keep out' sign." Scientist with altered voice and lampshade head: "There's a door on one facility that says 'Q only.' It's up to the person if they're not a Q to not go in that building." Attkisson added that "self patrolling became tougher a few years ago" when badges were re-designed, making low-clearance badges look much like Q badges. "But the biggest threat may lie in the ability of hundreds of Q clearance workers to simply carry out reams of secret documents," Attkisson revealed before the scientists explained how scientists can enter and exit without ever encountering a guard so they could load up a briefcase with secret files. Attkisson concluded: "Security and intelligence sources at the labs and the Energy Department confirm each of scientists accounts. One congressional investigator told CBS News the U.S. has never figured out how China stole huge amounts of weapons data but that these scientists' stories provide the best insight yet into how easily lab security can be breached."

www.ConservativeNews.org 5/3/99 Larry Arnn "...As we fight in Kosovo, where dangers multiply and success recedes, steps are neglected that can secure our freedom from attack at home. Reports abound that America's stock of cruise missiles runs perilously low, and no assembly line is producing more. The president has committed to ballistic missile defense, and yet he takes no urgent steps to complete a practical system and get it into operation. Meanwhile, China and Iraq give assistance to North Korea, a primitive and brutal place, in its effort to develop the means of direct and devastating attack upon the United States. How has China managed this? With nothing less than the best technology the United States has to offer. By now there can be no doubt that China possesses data on the most sophisticated nuclear warheads in our nuclear arsenal. These data the Chinese stole. Chinese spies were permitted to run amok in America's most secret research laboratories. But possessing critical data about warheads was not enough. The rest--that is, the technological means of delivering those warheads--was sold to China by American firms with export permits issued by the United States Department of Commerce...."

Chinatimes 5/3/99 AFP "....Top US officials were warned last autumn that China posed an "acute intelligence threat" to US nuclear weapons programs but waited until this spring to act, The New York Times reported Sunday. A report prepared by US counterintelligence officials, warning that outsiders were "constantly" penetrating the United States' nuclear research labs, elaborated on longstanding concerns about the vulnerability of these labs to espionage, the Times said. The report was distributed last November to officials at the highest levels of government, including Defense Secretary William Cohen, Energy Secretary Bill Richardson, National Security Adviser Sandy Berger and Attorney General Janet Reno...."

Newsweek Magazine 5/3/99 Gregory L. Vistica and Daniel Klaidman "... Weeks after reports that Wen Ho Lee, a Chinese-American scientist at Los Alamos, may have leaked secret nuclear-weapons designs to Beijing back in 1988, some in the U.S. intelligence community are asking: was the FBI deliberately slow to investigate? The bureau certainly had a reason to be embarrassed about the investigation: NEWSWEEK has learned that Lee's wife, Sylvia, was for years an FBI informant. According to senior intelligence officials, from 1985 to 1991, Sylvia Lee - an administrator at Los Alamos who arranged lab tours for Chinese delegations and attended academic conferences in Beijing - covertly helped the FBI keep tabs on prominent Chinese scientists and develop personality profiles on them..... Intelligence officials still have doubts about whether they will ever gather enough evidence to prosecute Wen Ho Lee, who, sources say, knew about his wife's relationship with the FBI. Lee maintains he is innocent. Earlier this month the FBI sheepishly revealed Sylvia Lee's FBI ties to top intelligence officials, who are furious that the bureau withheld critical information. According to government officials, FBI Director Louis Freeh, Attorney General Janet Reno and CIA Director George Tenet were also kept in the dark. This week Freeh will appear before angry senators on the Intelligence Committee. It won't be an easy sell...."

Time 5/3/99 Elaine Shannon and Michael Duffy "...Mrs. Lee's modest relationship with the FBI complicates the already murky case of her husband, Wen Ho Lee, a Taiwanese-born computer scientist who worked on nuclear-warhead design programs at Los Alamos. In 1995 U.S. intelligence officers learned that China had somehow stolen classified information about the W-88 miniaturized nuclear-warhead program. The ensuing FBI investigation found Wen Ho Lee had violated a number of lab security rules, including failing to report contacts with PRC scientists-lapses for which Department of Energy Secretary Bill Richardson fired him last month...."

Associated Press 5/5/99 H. Josef Hebert, "....As early as 1996, managers at the Los Alamos nuclear lab wanted to examine the computer of a scientist suspected of espionage. But they were warned away by Justice Department lawyers who feared the search would taint information for use in court, the Senate was told Wednesday..... Computer experts reconstructed the files, government officials have said, but questions remain why the search was not conducted much earlier since Lee had been under suspicion of espionage since 1996. "An individual is suspected of being a spy with access to all of our warhead information ... and we did not get into his computer. This is total incompetence,'' Sen. Don Nickels, R-Okla., said Wednesday...... John Browne, the director of the Los Alamos lab in New Mexico, told a Senate hearing Wednesday that as early as 1996 laboratory officials suggested to the FBI, which had just begun investigating Lee, that the Taiwanese-born scientist's computer be searched. They argued they could do so under a 1995 policy directive that advises all lab employees that their computers are subject to search without notice. "The FBI and the Department of Justice felt that the policy was not adequate (and) ... that if we proceeded independently, anything that was found they could not use'' in court, Browne told the Senate Energy and Natural Resources Committee. .... In 1984, Lee was told to take a polygraph test and "showed deception on seven questions'' that should have alerted security officials, said Domenici. Instead, the data became buried and was never passed on to lab managers. When the Energy Department office in Albuquerque, N.M., five years later raised some questions about the 1984 polygraph tests, the file disappeared when sent to Washington, said Domenici, so three years later the regional office had to hire a contractor to reconstruct Lee's personnel file....In August 1997, FBI director Louis Freeh told the No. 2 official at the Energy Department that the investigation of Lee would not be jeopardized if the scientist were shifted to a less sensitive job, or if his security were lifted. But word of Freeh's assessment never reached Los Alamos, according to Browne, who took over as the lab's director in November of that year. "I never received any information regarding this ... and to my knowledge, neither has anyone else at the laboratory,'' Browne told the senators Wednesday. Browne called this perhaps the most serious communications breakdown involving the Lee case and said if he had known of the FBI's go-ahead he would have moved quickly to remove Lee from his job....."

Syndicated Column 5/4/99 Debra J.Saunders "...LAST NOVEMBER, a secret report warned the Clinton administration about an "acute intelligence threat" in U.S. nuclear labs. Yet, according to a devastating report in the New York Times, five months went by before investigators searched the computer of the suspected party, scientist Wen Ho Lee. The delay gave Lee, who has since been fired from his job for security violations, time to try to delete thousands of files containing nuclear secrets. National security may be an oxymoron in U.S. government under President Clinton. His Justice Department turned down an FBI request to wiretap Lee's phone and monitor his computer. What's more, although investigators suggested that the Department of Energy transfer Lee to a less sensitive job, it instead put him in charge of updating the computer archives of nuclear secrets. (Lee's attorney insists his client is not guilty of espionage.) Get the feeling this administration doesn't take national security seriously? You should....."

Reuters 5/5/99 "...Senate Energy Committee Chairman Frank Murkowski, an Alaska Republican, waving a floppy disk said he was astonished that a scientist could basically download top secret information at the labs and walk out with it in a pocket. "It's the same as an individual walking out the door with what's in their mind, how do we stop that?'' John Browne, director of Los Alamos National Laboratory said. The same would apply to papers carried out with the secret designation cut off, he added. "It's an individual...determined to get classified information out of a classified area, that is of course the most serious security violation of all,'' Browne said..... Domenici proposed creating a special set of security requirements for Energy Department employees with access to nuclear information, requiring the FBI to handle all "Q'' clearance background checks, and requiring those employees as a condition of clearance to agree to take polygraph tests. The "Q'' clearance is a top secret designation for employees who work on nuclear weapons designs. Domenici also proposed allowing the government to log e-mail and telephone traffic in and out of the labs and allowing the FBI to search computers and monitor telephones within the labs, which currently is not allowed. In the past, even cooks in the cafeteria at Los Alamos were given the "Q'' clearance, but under former Energy Secretary Hazel O'Leary that was canceled because of the expense of background checks in which investigators talk to neighbors, friends, and other acquaintances of the prospective employee. Now the cafeteria is located outside the classified zone at Los Alamos, a lab official attending the hearing said. "We tell people don't talk classified in the cafeteria,'' he added. Under O'Leary, color coding of badges to designate security clearance was also eliminated, which the lab directors testified made it more difficult to tell who had top security clearance and who did not. The badge color coding was in the process of being reinstated, the directors said...."

American Spectator 5/99 John B. Roberts II "...Operation Desert Glow began like clockwork at 0900 on the morning of June 6, 1989. Just outside Denver, Colorado, almost a hundred heavily armed federal agents, including seventy special agents from the Federal Bureau of Investigation, descended en masse upon the Rocky Flats Nuclear Weapons Plant.... Operation Desert Glow had been authorized at the highest levels of government. FBI Director William S. Sessions, Attorney General Richard Thornburgh, Energy Secretary James D. Watkins, and EPA Administrator William K. Reilly had all sanctioned the massive federal raid on Rocky Flats. But this extraordinary cabinet-level attention was not due to suspicions of foreign espionage at the weapons production facility. The hundred federal agents were sent to Rocky Flats to search for criminal violations of environmental laws...... Operation Desert Glow marked the beginning of a cultural shift in the U.S. government that would last through the Bush administration and accelerate under Clinton. Insiders say that this decade-long assault on the institutional values of the Department of Energy's nuclear weapons complex created a lax security atmosphere that resulted in the most ruinous loss of nuclear technology in any espionage case since the Rosenbergs gave the Soviets the atomic bomb....."

American Spectator 5/99 John B. Roberts II "...Intelligence insiders expect the publicly disclosed assessments to be a whitewash. Citing the administration's strenuous efforts to suppress publication of Rep. Chris Cox's committee report on Chinese espionage, they expect the White House to try to keep the details of the W-88 theft classified. It is unlikely that any of these review boards will come up with the solution proposed by Shelby Brewer in Senate hearings two years ago. Brewer, who is now with the nuclear power investment holding company Brewer-Hanzlik Nuclear Partners, testified that the national security functions of the Energy Department should be split off and given to the Defense Department. Former Defense Secretary Caspar Weinberger appeared on the same panel and seconded Brewer's view...."

Time 5/10/99 Romesh Ratnesar "...No Chinese general would rely on the validity of stolen designs alone to build and deploy new nuclear weapons. Instead the time-honed technical expertise found in the U.S. codes could allow savvy foreign scientists to measure the punch packed by weapons they already possess without actually testing them. It's a doozy for the Chinese, who may have pocketed U.S. secrets just before they signed the nuclear test-ban treaty in 1996. And then there are the nuclear wannabes from Pyongyang to Tripoli, to whom the Chinese might sell the codes. Warns Gary Milhollin of the Wisconsin Project on Nuclear Arms Control, based in Washington: "This could facilitate nuclear-weapons development by China, or anybody else, without our knowing about it." ..."

NY Times 5/6/99 James Risen "..."Is there a monitor of individuals walking in and out that would pick up if somebody had this in his pocket?" Murkowski asked the directors, as he held a disk in his hand. "No there is not," conceded John Browne, director of Los Alamos. "And the problem is that any floppy disk like you're carrying, you can't tell unless you read all the contents whether it's classified or not." Murkowski expressed outrage at the way the Los Alamos case has been handled by lab officials, by the Energy Department and the FBI....Floppy disk drives on computers on the unclassified system have been disabled or sealed in recent weeks, but not on the classified computers, officials said. Energy Department officials said they are now working on ways to eliminate the use of floppy disks on the classified network....."

Associated Press 5/6/99 H. Josef Hebert, "...Energy Secretary Bill Richardson acknowledged massive security breaches at nuclear weapons labs Thursday but said in an interview that criticism is "starting to become a blame game'' that could hurt the labs and the nation.... Richardson said he was concerned that several moves underway in Congress to restrict or even ban foreign scientific exchanges at labs or to have the FBI take over lab security are unnecessary and an overreaction. ..."

Los Angeles Daily News 5/4/99 Editorial "....AMERICA has generously opened its most closely guarded nuclear weapons secrets to the world, allowing unnamed governments and unknown individuals easy access. Oh sure, alarms sounded. But it appears officials in the Clinton administration meticulously turned the alarms off by burying or ignoring reports warning of America's vulnerability. And the news gets worse. Now, the only thing standing between U.S. security and anarchy is Congress. The American public should be very afraid. Clinton administration officials were warned last November that China posed an ''acute intelligence threat'' to the government's nuclear weapons laboratories and that computer systems at the labs were being constantly penetrated by outsiders. Three months earlier, Congress itself issued a strongly worded bipartisan report criticizing U.S. technology transfer to China that helped China improve its nuclear weapons...... While Clinton and Congress fiddled, the United States was robbed of leadership and security, and left vulnerable. Sadly, public trust has been so eroded that we may never know for sure how serious the breach in our security was and whether we are still at risk...."

American Spectator 5/99 John B. Roberts II "...After the 1992 election, matters only got worse. "The priorities were wrong, " says former Secretary Herrington, "and when that was over you had a secretary of Energy put in there whose priorities were world travel, junketing with businessmen and CEOs, and a huge declassification effort including things that shouldn't have been declassified. And you had a culture at DOE that was anti-nuclear." When she took over the department as Clinton's first energy secretary, Hazel O'Leary made clear that she thought DOE had too many secrets. She ordered an agency-wide review of files and documents for the purpose of releasing information. Her new team of political appointees, many drawn from the ranks of the anti-nuclear movement or extremist environmental groups, were eager to ferret out and disclose the department's secrets. O'Leary chose Dan Riecher, from the Natural Resources Defense Council, to be her chief of staff and later named him assistant secretary. "That was like putting a fox in the henhouse," says Brewer, who points out that the activist hard-line NRDC had frequently filed nuisance suits against the department during the eighties. Riecher drew other environmental activists into the ranks of DOE's mid-level and junior political appointees. Another senior O'Leary appointee, Terry Lash, was drawn from the Illinois state environmental protection agency. At DOE, Lash drew fire from Congress for misusing funds appropriated for nuclear reactor and safety research programs by reallocating the money for alternative and renewable energy grants. One former high-ranking Energy Department security official is convinced that O'Leary's environmental activists have used their access to official information to funnel documents to environmental and anti-nuclear groups, ensuring a wave of litigation against future nuclear power or nuclear weapons programs. He believes that classified information has been compromised because of the political ideology of the anti-nuclear activists...."

American Spectator 5/99 John B. Roberts II "...Instead of heeding Trulock's warnings, O'Leary ordered the department's intelligence division to cease gathering information on anti-nuclear extremists and environmental radicals--such as those responsible for the recent arson at a Vail, Colorado ski resort--who frequently impede shipments of nuclear materials. She forbade them even to keep newspaper clippings on the suspect groups. O'Leary's actions were destructive to department morale. "The guys making the nuclear weapons felt like they were the bad guys, and they really got the short end of the stick," recalls Bergen. Tight budgets and program cutbacks at the national labs after the Cold War left U.S. weapons scientists, like their Russian counterparts, wondering about their futures. The new disrepute of the nuclear weapons profession and the government investigations at Rocky Flats combined with the sudden declassification of long-guarded DOE secrets fostered the perception among nuclear lab employees that security no longer mattered. The situation virtually invited foreign intelligence services to redouble their efforts to recruit nuclear spies. Trulock was not the only one to warn O'Leary to tighten security. As part of her declassification drive, the secretary had appointed a top-level committee to decide which secret DOE activities could be declassified. The end-product was something called the Fundamental Review, which determined that many of the documents and programs classified during the Cold War no longer required secrecy. But as the Fundamental Review progressed, there arose a strong belief among the committee that the department's vital secrets needed better safeguarding. "We should identify what really ought to be protected, and build the walls higher around it," explains Troy Wade, who served on the committee. But while O'Leary was more than pleased to accept the committee's recommendations on declassification, she ignored its advice to improve security in coordination with other agencies including the FBI and the Defense

American Spectator 5/99 John B. Roberts II "...Inside the U.S. intelligence community, the targeting of America's nuclear secrets is a well-established fact. During John Herrington's tenure as Energy secretary in Reagan's second term, Chinese efforts to infiltrate Energy Department facilities were constant and persistent. So were similar efforts by the Russians, the South Africans, and the Israelis. Herrington knew how important cooperation between the FBI and DOE was in preventing foreign espionage. So when at the end of the Reagan administration Bush's incoming FBI director, William Sessions, wanted to meet for a briefing, Herrington readily agreed. Sessions, a former federal judge, knew little about DOE's national security mission. Herrington gave him an overview and urged Sessions to "get read into and briefed up" on the secret side of the department's activities. Sessions promised he would. Sessions's tenure as FBI director was less than six months old at the time of Operation Desert Glow. Herrington was incredulous when he learned about the Rocky Flats raid. At a reception in California, the former cabinet member confronted the FBI director. "Why are you sending the FBI out to Rocky Flats," Herrington asked in straight Marine Corps fashion, "when we have problems in this country with drugs, with crime, with espionage in Silicon Valley?" "You know," Sessions answered defensively, "these are high priority cases, too." Herrington still bristles at the government's prosecution of the weapons plant managers. "They put the pedal to the metal for us," he says, referring to Congress's and the administration's orders to match the Brezhnev-era Soviet build-up by accelerating weapons production in the eighties. "They were only doing what we told them to do." The new management culture looked upon those same executives and scientists with a mixture of suspicion and disdain--as, at best, useless relics of the Cold War; and at worst, environmental criminals and pro-bomb fanatics. Security and morale in the nation's nuclear weapons infrastructure plummeted as a result Insiders say there is a direct correlation between the cultural shift at DOE and the degradation of security that permitted China to steal the secrets of one of the most advanced nuclear weapons in the U.S. arsenal, the W-88 warhead...."

USA Today 5/6/99 "...Five months ago, a special congressional committee investigating security problems with China questioned whether the Department of Energy had adequate safeguards to protect nuclear secrets. Its report won't be out until next week. But on Feb. 1, President Clinton responded, saying safeguards were "adequate" and getting better. That wasn't true then, and is doubtful now, as senators are learning this week. Fresh disclosures reveal a laxity at government's highest levels that defies easy explanation....Between the time the Justice Department refused the FBI's request for a court order and Lee's firing, there were more than 300 break-ins involving the computer network on which Lee kept his purloined nuclear secrets. A classified report last November alerted the heads of defense, energy, the intelligence agencies and the national security counsel to those vulnerabilities. Yet it took Energy Secretary Bill Richardson until April to upgrade computer security at the weapons labs. All of this mocks White House claims of taking security seriously and that it was previous administrations that were to blame. Now, the administration is ominously indicating those found culpable will be let go...."

NY Times 5/5/99 AP "...Lab officials also were dissuaded from even checking the scientist's office computer, although employees had been warned in a formal policy that their computers were subject to search ``without notice'' as a security precaution. Again, lab managers were told such a search might taint evidence and ruin a potential criminal case. ``This points out the dilemma of balancing the requirements of national security against the constraints guiding law enforcement efforts,'' John Browne, the Los Alamos director, told a Senate Energy and Natural Resources Committee hearing. Paul Robinson, director of Sandia National Laboratory, also located in New Mexico, told senators that in the past he had ``pulled a person's clearance'' even when an FBI investigation was under way. He gave no further details.... Browne, a 20-year employee at Los Alamos who became the research lab's director 18 months ago, said Lee would have been transferred out of the secure areas, if given the word from the FBI. When Energy Secretary Bill Richardson directed that Lee be transferred last December ``we had him out within hours, we put him in an office outside the classified fence,'' said Browne. But FBI Director Louis Freeh had told senior Energy Department officials in August 1997, before Richardson was on the job, that the investigation would not be hindered if Lee's security clearance were lifted. The problem, said Browne, is that lab managers never got the word. ``This is one of the real breakdowns in communications'' that has marred the Lee case, said Browne...."

Washington Times Inside Politics 5/7/99 Jennifer Harper Freeper Donna "..."I found out last night that one of our laboratories -- I believe it's in Los Alamos -- there's a 'China Friendship Committee' of Chinese-American employees at that lab that's funded by the Chinese Embassy in Washington," Rep. Curt Weldon, Pennsylvania Republican, told radio hostess-with-the-mostess Blaquita Cullum Thursday. ..."

CNN / Associated Press 5/7/99 Candy Crowley "...A bipartisan Senate intelligence committee report formally released Friday concludes that the desire of U.S.companies to take advantage of Asian markets, coupled with lax enforcement of export security by both the Bush and Clinton Administrations, allowed China to obtain U.S. missile technology...... The ten-month probe concluded "the technical information transferred during certain satellite launch campaigns enables (China) to improve its present and future (missile) force that threatens the United States." The report, cleansed of classified information, never says straight out that China enhanced its nuclear weapons capability with U.S. commercial technology, but page after page indicates investigators believe that's exactly what happened. The panel also found a concerted effort by the Chinese to influence U.S. policy and reverse trade restrictions imposed in 1989 after the Tiananmen Square crackdown. This effort, according to the report, eventually led to the open flow of technology exports. "China actively lobbied U.S. companies that they were losing valuable business opportunities because of sanctions and government restrictions," making it clear that access to its potentially vast markets "would be available to companies willing to cooperate," the committee report reads. For the committee's chairman, Republican Richard Shelby of Alabama, "the transfer of missile technology to the Chinese, I believe, basically to make a buck by a lot of our aerospace companies," is the worst part. But along with China's lobbying effort, a key factor in facilitating the technology transfer, Senate investigators believe U.S. government officials "failed to take seriously enough the counterintelligence threat during satellite launch campaigns." Citing decisions to ease export rules by both President Bill Clinton and former President George Bush, the report says the government "emphasized commercial interests over national security" by failing to adequately fund satellite export security teams that would monitor the technology exchanges....."

Washington Times 5/7/99 Helle Bering "....Miss Reno's Justice Department did its part. From October 1996, when the campaign-finance scandal erupted, to the present, Miss Reno has repeatedly refused to seek the appointment of an independent counsel to investigate the Chinese-Democratic Party money connection. Meanwhile, other senior Justice officials repeatedly refused in 1997 to seek a court-approved wiretap that would have allowed the FBI to examine Mr. Lee's office computer...."

Washington Times 5/7/99 Helle Bering "....DOE did its part as well. Without the wiretap, the FBI was unable to pursue aggressively its investigation of Mr. Lee. In April 1997, with its investigation stalled, the FBI advised DOE to remove Mr. Lee from his sensitive position. Instead, DOE inexplicably placed Mr. Lee in charge of updating the computerized archive of nuclear secrets... Most of this downloading, which includes virtually all the nuclear secrets of the U.S. arsenal, occurred in 1994 and 1995. Had Miss Reno's Justice Department obtained the court-approved wiretap in early 1997, the FBI would have learned about Mr. Lee's unauthorized downloading two years earlier. Meanwhile, DOE refused for several years to reinstate the FBI-recommended background checks for visitors to its weapons labs, and the counterintelligence officer who uncovered the espionage has testified before Congress that an acting DOE secretary prevented him from briefing Congress about the Chinese spying...."

The Sunday Times (London) 5/9/99 Stephen Grey, Matthew Campbell, and Hugh McManners "...YESTERDAY Nato admitted it had bombed the Chinese embassy in Belgrade after mistaking it for a Yugoslav government office. At least three people were killed in the attack, which threw diplomatic efforts to end the war into turmoil. Alliance officials said they had believed the building was Yugoslavia's federal directorate of supply and procurement, which organises weapons imports and exports. It was hit by three 1,000lb precision-guided freefall weapons, thought to have been dropped by a B2 stealth bomber. Last night Nato diplomats were looking to General Wesley Clark, the supreme allied commander who now has sole authority for selecting targets, to take responsibility. Allied intelligence agencies, including the CIA, were also facing severe criticism. "It is absolutely incredible not even to know where the embassy of such an important world power is situated," one diplomat said....The embassy, purpose-built for the Chinese in 1993, was hit during the heaviest bombardment of Belgrade in more than six weeks of bombing. Witnesses said two missiles struck the roof and one penetrated its side. Two journalists and a reporter's wife died. A fourth victim was reported missing. Chinese diplomats, some with bloodstained clothes, watched in tears as rescuers brought out 21 injured. ...."

Wash. Post 5/9/99 Steven Pearlstein "...Embarrassed and apologetic NATO officials today blamed an "intelligence failure" for causing Friday night's accidental bombing of the Chinese Embassy in Belgrade that left at least three dead and 20 wounded, and threatened to derail diplomatic efforts to end the military conflict in Yugoslavia. NATO said its laser-guided bombs were mistakenly aimed at the embassy because CIA officials gave military planners incorrect information about the target, which they believed was the Federal Directorate of Supply and Procurement, which the alliance described as a military facility. Military authorities said the two buildings are 150 to 200 yards apart and are similar in size and age. Four bombs hit the embassy and were dropped by one or more U.S. planes, according to Pentagon officials. In an unusual joint statement issued late Saturday, Secretary of Defense William S. Cohen and CIA Director George J. Tenet expressed regret about civilian deaths and said that "faulty information" led to the mistaken bombing...... Unlike earlier mishaps in the air war, when bombs strayed from their intended targets, officials said the Chinese Embassy was hit by four bombs that had been targeted on the new five-story building, in the belief that it was the Yugoslav military's weapons warehouse and procurement center. But throughout the day, alliance military spokesmen in Brussels and Washington could not provide details of how such a mix-up could have occurred. Officials declined repeated requests to produce a map showing where the embassy was in relation to the procurement center or even to estimate the distance between the two sites. Initial reports said missiles were used in the attack, but in fact they were laser-guided bombs...."

Associated Press via Washington Post 5/9/99 Jim Abrams "...A CIA error that was based on faulty information and then went undetected in subsequent checks led to the mistaken NATO targeting and bombing of the Chinese Embassy in Belgrade, a U.S. official said Sunday. The official, speaking on condition of anonymity, said the intended target, the Yugoslav Federal Directorate of Supply and Procurement, was chosen by the CIA. Other organizations, including NATO, the U.S. European Command and the Pentagon's Joint Staff, reviewed and approved it, the official said. ``This went through all these hoops, but for whatever reason it was not detected,'' the official said of the mistake. The Chinese Embassy is several hundred yards away from the Yugoslav government supply office. .... Meanwhile, Rep. Porter Goss, R-Fla., chairman of the House intelligence committee, said the bombing shows that America's intelligence capabilities are stretched too thin and that such mistakes will happen as a result. ``I say it's a reaping of the harvest of the underinvestment in our intelligence capabilities,'' Goss said on ``Fox News Sunday.'' Goss's Senate counterpart, Sen. Richard Shelby, R-Ala., agreed: ``We've been doing defense, which intelligence is part and parcel of, on the cheap for about 13 straight years, and now you're seeing the fruits of it.''..."

Stratfor 5/9/99 "...2145 GMT, 990509 - CNN is reporting that the unofficial, official story coming out of NATO is that the initial target selection that led to the bombing of the Chinese Embassy in Belgrade came from the CIA. It was then passed through the U.S. Joint Staff in the Pentagon, the U.S. European Command and then up through the NATO staff. CNN was told that the basic problem was that the maps being used were out of date, showing the Chinese Embassy to be in a location where it hasn't been in over four years. This story leaves an interesting gap: if the CIA were doing the target selection, one would assume that the staff involved would have included people who had served in the Belgrade station. ...Outdated maps are a constant hazard in war, but the location of this target should certainly have been known immediately to several people on the CIA's staff. The problem with NATO's story is that the CIA is the one planning group that is least likely to be able to make this mistake. We suspect that there is a partial truth being told here, which is that CIA generated a target set and that NATO planners plugged in the coordinates based on their own databases.... Building imagery and mapping data would be drawn from National Imagery and Mapping Agency (NIMA) databases by Air Force mission planners, as part of the normal mission planning process. A lot more is required to plan a mission than the name of the target or even the latitude and longitude. The U.S. military would be drawing on its own intelligence resources (NIMA, DIA, USAF's own intelligence) to provide the needed details for mission planning. NATO knows that and is providing the additional links in the chain. What they are neglecting to tell us is that even if the CIA provided a target ID, there was ample opportunity at all levels to detect the error. But it still strikes us as hard to believe that the CIA planning cell, loaded with some intelligence officers fresh from Belgrade, made this error. And, no, we do not believe that the CIA wanted to hit the Chinese Embassy on purpose; not to embarrass the President, not to take out secret Chinese radars, nor to destroy evidence of trillion dollar mines in Kosovo. What is really going on here is that NATO is working overtime to shift the blame as far away from itself as possible, in this case all the way to Langley, Virginia...."

The New York Times 5/10/99 David H. Freedman "...The possibility that an American nuclear-weapons lab harbored a spy for several years is surely cause for alarm. But much of the outrage has focused on the way the alleged spy may have compromised secret data -- that is, that a lab employee was able to freely hijack millions of lines of sensitive code from a high-security computer network and place them on an insecure computer, where they resided for years and could have been E-mailed around like so much spam...... The Defense Information Systems Agency estimates that unclassified Defense Department networks were attacked by hackers 250,000 times in 1995 and half a million times in 1996, the most recent year for which estimates are published. Of these attacks, some 65 percent were successful; less than 1 percent were even detected by systems administrators at the time..... "

Email to Freeper Jolly 5/10/99 Steve Bryen "...A few thoughts on Los Alamos Laboratory, security and China. While it may appear to some that the lax security at the Los Alamos labs is a unique and unusual incident, and that Wen Ho Lee is an aberration, I think there is cause for much deeper concern, because weak security at our national laboratories and Federally supported scientific organizations is nothing new. In the early 1980's I was at the Defense Department responsible for technology security and became increasingly concerned about lax security at our national labortories. Our eye, then, was cast mostly at the Russians, but we were also seeing scientists from the Middle East, most notably Iraq, with access to these research facilities. Many of these scientists operating at these sites were engaged in research work that was pertinent to nuclear weapons design and development. For example, one of the areas of concern was weather modeling, because weather modeling requires sophisticated algorithms that are very similar to codes used in nuclear design work. When we brought these concerns to the labs and asked them to step up security, they fought a hard political battle to deter us. It was quite clear that the labs saw their mission as not only supporting the US R&D establishment, but they also had an international political agenda --building ties with scientists, particularly in the communist countries. There is no doubt that such ties can provide useful intelligence information. and sometimes that happened. More often than not, however, a lot of really important information about state of the art American technology got exported through this unsanctioned good will program. It is clear that in the permissive post-cold war arena, despite the terrible mistakes made with regard to passing important scientific information to Iraq on both nuclear weapons and chemical and biological weapons technology and data, that the Labs have becoming even more lax in their approach to security. For example, it was reported in today's press that Wen Ho Lee's secretary was a Chinese national, working for him at Los Alamos, and that she was allowed to return to China without being interviewed by the FBI. What is stunning about this is the fact that a foreign national from a potential adversary and nuclear competitor could be providing support to a scientist working on the most sensitive nuclear weapons design projects, who himself had top secret clearances. It goes without saying that this secretary would have had access to his files and to his desktop computer, and would know quite a lot about his work, and who he was talking to and what problems he was attempting to solve, even if no classified information was passed. Normally, in a security environment, assistants have the same clearances as their bosses because it is expected they will handle much of the collateral work their boss is involved in......"

Stratfor 5/10/99 "....0200 GMT, 990510 - The most recent NATO explanation of why the Chinese Embassy was bombed was that the CIA provided outdated maps of Belgrade, showing the old location of the Embassy before it moved to its new site four years ago. NATO is also claiming categorically that there was no pilot error and that the mission was carried out as planned. This is beginning to make no sense whatever. According to old maps of Belgrade and numerous sources inside and outside Yugoslavia, four years ago the current site of the Chinese Embassy was a vacant lot in a residential area. The only major structure nearby at the time was the Hotel Jugoslavia. Since then an office building has been constructed nearby. Now the NATO statement that there was no pilot error and the admission that an old map was being used are completely incompatible. If we are to believe both these claims, then we must assume that the target was a vacant lot. That is possible, assuming there was a bunker there. However, NATO has leaked to the New York Times that the strike was delivered by B-2 bombers using laser guided missiles. That means that someone had to fix a laser beam on the target. They would probably have noticed that the empty lot now had a large building on it. This is really getting ridiculous....What is truly puzzling is that these explanations are so utterly unbelievable that they are clearly intended to be seen through. Since we can't believe that the Chinese Embassy was attacked deliberately (it just makes no sense whatever) and since the accident couldn't have occurred the way NATO spin-doctors are describing, we are at a growing loss to understand the situation...."

New York Times 5/10/99 William Safire "... called three friends in the Departments of Energy, Defense and Justice and asked them to turn on their office computers and read to me the first banner that came on their screens. Anyone using this system expressly consents to monitoring" is the message. Government employees using Government equipment on Government time thus waive privacy claims. Wen Ho Lee, the scientist who downloaded millions of lines of the nation's most secret codes to a computer easy to penetrate, also signed a waiver consenting to a search of his computer without his knowledge. And yet the Reno Justice Department denied the F.B.I.'s request for permission to search Lee's Government computer. Eric Holder, Janet Reno's deputy, decided that a court search warrant was necessary -- but then refused to apply to the special foreign-surveillance court to get it. Of more than 700 such F.B.I. requests a year, a surveillance official admits that a flat turndown is extremely rare. Why this one?

Ms. Reno, who never met an investigation of Chinese penetration she didn't try to undermine, is suckering us with a claim that the denial of surveillance was to protect a criminal investigation. That is foo-foo dust. This was counterespionage, and the Criminal Division was kept in the dark. Making C.D. the scapegoat for the failure to protect America's deepest nuclear secrets is typical of the Clinton-Reno refusal to accept responsibility for endangering national security. Reno has appointed her personal Whitewash Brigade of favorite roundheels. This enables her to rebuff Congress and the press for months with the usual "I cannot comment because an inquiry is ongoing." ...With Clintonites hunkered down and Justice covering up, Congress must do the digging. A report by the Wisconsin Project on Nuclear Arms Control showed what Chinese arms enterprises received U.S. technology over the past decade -- but could supply no names of U.S. exporters during the Clinton years. That's because that embarrassment is "proprietary information" at the Commerce Department. John McCain's Senate Commerce Committee has the power to subpoena those names from Commerce, and to have Wisconsin's Gary Milhollin run those sales against his Chinese-arms data base. That would tell us what political contributors were allowed to sell sensitive technology in 1996 and 1997 to which Chinese nuclear, missile and military sites....."

NewsMax.com 5/9/99 "....NewsMax.com's executive editor Chris Ruddy was the first to uncover a possible connection between lax security at our weapons labs and policy changes implemented through O'Leary. In his March 11, 1999 report, "Scientist: Clinton Administration Gave China Top Nuclear Secrets", Ruddy revealed: "China's efforts culminated with a delegation of Chinese scientists who visited (Lawrence Livermore National Laboratory) in the winter of 1994, and another visit by Department of Energy Secretary Hazel O'Leary at about the same time." Ruddy's source, a Livermore whistleblower, contended that, "the Clinton administration has, in fact, aggressively sought to provide China with some of the most closely guarded nuclear weapons technology." At Livermore, this scientist said, "the administration had facilitated the transfer of laser technology employed in the process of making nuclear weapons-grade plutonium." After O'Leary's 1994 meeting at the California lab, "the scientist recalled several Livermore scientists in a heated debate over whether 'this type of information (relating to the weapons enriching laser process) should be considered for technology transfer' to China." "The deal with China for the technology transfer was consumated, the scientist said, sometime later that year after O'Leary's visit, when top DOE officials, Department of Commerce officials representing Ron Brown, White House representatives and Chinese government officials met in a guarded room at the Pleasanton Hilton nearby to Livermore." ...."

Reuters 5/10/99 "...A scientist assigned to a classified Pentagon project in 1997 supplied China with secrets about advanced radar technology being developed to track submarines, a report in the New York Times said Monday. Submarine detection technology is closely guarded by the Pentagon because the U.S. Navy's ability to hide its submarines is a key military advantage, the newspaper said.....The Justice Department in Washington also blocked any prosecution of Lee, officials quoted by the paper said..... On March 26, 1998, a judge declined to put Peter Lee in prison and sentenced him to 12 months in a halfway house with three years' probation and a fine of $20,000, according to the newspaper. Regardless of the failure to prosecute Lee over the radar technology, the case shows Chinese espionage runs deeper than just assertions of theft at the Los Alamos National Laboratory, the Times said. It also illustrates that the American government believed China was successfully receiving American defense secrets during President Clinton's second term in office, the paper said...."

Reuters 5/11/99 "....For the modest outlay of 28 Yugoslav dinars ($2.80), NATO could have saved themselves a lot of trouble. That was the price of a 1998 Belgrade city map, bought at a tourist information bureau in the centre of Belgrade on Tuesday, which gave the address of the Chinese embassy and clearly marked the street in which it stands, or what remains of it. Using what U.S. authorities admitted was an outdated 1992 map provided by the CIA, NATO hit the Chinese embassy in Belgrade with three missiles on Friday, killing three people, sparking mass demonstrations in Beijing and threatening to derail a possible Kosovo peace deal..... Shelby blamed the outdated data base on the reduction in funding for U.S. intelligence operations. "When you're stretched thin...When it's dated and it's not checked for the latest mapping of the grid of Belgrade, mistakes are going to happen," he said...."

Associated Press 5/10/99 John Diamond "...In an extraordinary admission of error, the CIA said Monday that outdated maps, a lack of communication within the U.S. government and educated guesses that went terribly wrong led to the NATO air attack on the Chinese Embassy in Belgrade. Grim-faced intelligence officials briefed lawmakers behind closed doors, then met with reporters to explain how a B-2 stealth bomber came to drop a load of satellite-guided bombs on a plainly marked embassy compound well-known in Belgrade to diplomats and civilians alike. The B-2s were all too accurate in hitting targets. The problem was that CIA operatives misidentified the target, and pre-strike checks by the Pentagon and other allied military commands failed to catch the error. In addition, neither the State Department nor other NATO allies had alerted target planners that the Chinese Embassy had moved in Belgrade in 1996. Defense Secretary William Cohen called the bombing a ``tragic mistake'' and said, ``If there's culpability to be found, we will consider appropriate action.''..."

Associated Press 5/10/99 John Diamond "...Several weeks ago, CIA officials ``nominated'' the Yugoslav Federal Directorate for Supply and Procurement for destruction by NATO bombers, pointing to the directorate's role in supplying weapons to the Yugoslav Army and exporting munitions. The planning began with a street address -- a correct one, it turns out -- on Cherry Blossom Boulevard in Belgrade. The problem was finding that address on National Imagery and Mapping Agency maps. Some guesswork was involved. The CIA had fixed the locations of some buildings on the street, but not the directorate. Using a variety of undisclosed sources, the CIA tried to extrapolate the location of the directorate based on known addresses nearby. Those sources did not include an agent on the ground in Belgrade actually looking at the prospective target because no agent was available. From now on, an intelligence official said, it will be an ironclad requirement to have sources on the ground checking targets visually when they lie in urban areas. This was the initial and critical error. The CIA's extrapolation was off by a few blocks. The actual directorate is down the street, which changes names to the Boulevard of the Arts. NATO has not ruled out striking the directorate -- now that it knows where it is....."

NY TIMES 5/12/99 TIM GOLDEN and JEFF GERTH "…On June 3, 1998, the comptroller's office called a second, larger interagency meeting to present the findings of its investigation into Far East National. "This was a situation where we had identified a piece of a much bigger puzzle," Stipano, the agency's enforcement director, said. "And the rest of the puzzle was not something that we had the ability or the authority to investigate." Because the investigators thought some of the $92 million might have been diverted by Chinese officials, a State Department official was asked to consider raising the matter with Beijing. The Department decided against that. "It was not a foreign policy issue that one raises with the Foreign Ministry," one official said. At the FBI, an official said the matter was initially passed on to a task force investigating campaign-finance cases questions. The task force later referred it back to the bureau's headquarters in Washington, which forwarded it to the FBI field office in Los Angeles. Although the field office brought the case to the office of the U.S. attorney there, word of it only belatedly reached agents in foreign counterintelligence -- those who knew the most about Ms. Xu…."

 

5/12/99 BBC News "...The United States Energy Secretary, Bill Richardson, has announced wide-ranging security changes, following allegations that China stole American nuclear secrets. Mr Richardson said the improvements would overcome a lack of accountability in the Energy Department that had left it's weapons research facilities exposed to espionage and potential theft. Among the new procedures a "security czar" will be appointed to oversee a new structure that groups all the department's security functions together..... "What I am doing is trying to correct a long-standing problem here at the Department of Energy and that is the overall security complex - it has been directionless, diffuse," Mr Richardson said announcing the creation of the post. "It is clear that over the past several decades, security and counterintelligence at the nuclear weapons laboratories has not been given the necessary priority and attention." ..."

Miami Herald 5/12/99 F.W. RUSTMANN JR. "...F.W. Rustmann Jr. worked 24 years for the CIA. He now heads CTC International Group in West Palm Beach, providing intelligence and international investigation services to business. Good grief! An ethnic-Chinese computer scientist employed by the Los Alamos National Laboratory is suspected of having passed highly classified information on nuclear-warhead technology to the Chinese government. And (gasp) he may have been doing it for the past 10 years. What a surprise! .... Here's how it works: The Ministry of State Security is the arm of the Chinese government that governs intelligence collection. Its case officers are assigned to Chinese embassies and consulates or other quasi-official installations abroad and run the networks of agents and informants. Virtually all Chinese citizens who work or study abroad, and overseas Chinese who visit their families in China, are routinely contacted and monitored by State Security. They are asked to keep their eyes and ears open and to report any information they may stumble across. Those who develop access to information of value become candidates for full recruitment. They are given guidance on intelligence requirements and collection techniques, provided with communication plans and put into contact with State Security case officers. There is no shortage of overseas Chinese who retain some degree of loyalty to their motherland. Furthermore, cooperation is often not a matter of choice; coercion and threats (usually against family members residing in China) are used, as well as positive incentives (money, privileges, etc.)....Although the loyalty issue is a sensitive one, it must be confronted when national security is at stake. Naturalized U. S. citizens are not second-class citizens and should in no way be treated as such. But it must be remembered that as a group they are vulnerable to pressure from their former countries. When that former country chooses to exploit these individuals as a matter of state policy, we have a real problem...."

Insight James P. Lucier "....After his NBC Meet the Press appearance on May 9, Energy Secretary Bill Richardson rushed back to the Department of Energy, or DOE, and announced a program of fundamental changes to the department's security policies. He had been publicly humiliated when host Tim Russert put him in the crosshairs of laser-guided questioning and forced him to admit that, contrary to President Clinton's claims, hugely important nuclear secrets indeed had been stolen during the Clinton administration, as well as earlier. As late as March 16, Richardson still had been testifying before the Senate Armed Services Committee that "in the mid-1980s, during the Reagan-Bush administration, China may have obtained strategic nuclear-weapons information." ..... But Richardson, who took over from former secretary Federico Peña last August, stalled implementation of security reforms that had been requested by security officials in annual reports to the secretary in 1995, 1996 and 1997, and called for in a comprehensive study by the Nuclear Command and Control Staff Report on Oversight in the DOE in 1998. Even the General Accounting Office had issued 31 major reports critical of DOE security at the labs....."

Insight James P. Lucier "....Moreover, it now can be revealed for the first time that recommendations made and ignored since 1995 have included complete top-down and bottom-up security upgrades to protect DOE's highly classified operations from being penetrated by foreign or domestic spies as well as preventing thefts of computer codes and hardware such as nuclear materials. Hill sources tell Insight that investigations by both the CIA and the FBI are ongoing and reach to the highest level of the department. As a result, neither agency is sharing findings with the National Security Council....."

Insight James P. Lucier "....The problems during the Reagan-Bush administrations, DOE security analysts say, stemmed from a decades-old culture of academic elitism that has prevailed in the prestigious research labs, such as Los Alamos and the Lawrence Livermore Laboratory, both managed by the University of California. Some research scientists have tended to regard the sharing of science with all humanity as a nobler goal than protecting national security, and others are quite open about their concern that the United States has become the lone superpower. These notions had to be kept in check by strict security enforcement....."

Washington Times (Book Review- Regnery) 5/12/99 John R Bolton "....... Mr. [Bill] Gertz provides a series of case studies of Clinton administration failures in defense and intelligence, based largely on his own reporting for The Washington Times, that create a cumulative impact both devastating and depressing. ...Mr. Gertz demonstrates tellingly that there is a pattern to Clinton administration decision making, the result of well-thought-out and deeply held national-security philosophies. Although the author also has much to say on individual incompetence and duplicity, his central point is how completely witting and united the administration's policy leadership actually is in its wrongheaded view of America's place in the world. .....Indeed, although Mr. Gertz's emphasis is on defense matters, he does not overlook the hollowing out of America's intelligence and counterintelligence capabilities. As with declines in military spending on research and development, the cutbacks in the U.S. intelligence capability are neither easily nor quickly corrected, and form a significant obstacle to effectively reasserting U.S. interests internationally....In Mr. Gertz's analysis, spin and intelligence also intersect in the administration's repeated distortions of what it actually knows. For example, he quotes one anonymous official saying that "Madeleine Albright lied to the Senate" about North Korea's nuclear weapons program, and Mr. Gertz alleges that this incident is not a one-time occurrence..... This is not an academic book intended for defense intellectuals (although they would be remiss if they did not read it), but rather straightforward reporting covering about six years of a dangerously flawed presidency. It is troubling that so much of the book depends on government sources leaking classified information, but this unfortunate fact only underlines just how corrosive the Clinton administration's approach has been. Certainly, Mr. Gertz has given us more than ample notice of the damage caused by "the feel-good approach to national security." The remedy is obviously in our hands...."

Nando Times - Christian Science Monitor Service 5/15/99 Scott Baldauf "... The scientists here [Los Alamos] who work with the arcane and sensitive insist it is not difficult to understand the difference between what's secret and what's not - or to keep them separate. But they acknowledge that even the tightest security will do little stop an insider who is determined to pass on "black" information. "If you are in a position of trust, with all the computer tools of modern society at your disposal, there's a lot you can do to betray that trust," says Stanley Busboom, director of security at Los Alamos. "A determined insider who is a U.S. citizen can do a lot of damage. We could only hope to make that more difficult, and to catch them doing it." ....But ask nuclear scientist Albert Migliori if he thinks Los Alamos National Laboratory is a soft target for espionage, and he just might go ballistic. "There is no question in my mind what is sensitive information and what is not," says Migliori, giving a visitor a tour of a laboratory full of purring computers. "There is a moral obligation for keeping these secrets and making sure these weapons are robust. This is too dangerous to let anyone know what we know." ....."Ironically, deterrence works less if an adversary can't see the fruits of our work," says John Martz, a manager for enhanced surveillance of the nuclear-weapons program. In the old days, deterrence was just one earth-shaking nuclear test away. Today, where nuclear tests have been banned, scientists must verify the reliability of weapons through subtle computer models and precise measurements of how plutonium cores deteriorate over time. "Ultimately, having foreign nationals here can be a deterrent. They should not doubt the first-class nature of our research." ......But in the meantime, Migliori says the current media scrutiny is causing some top scientists to start looking for other jobs. "It's absolutely demoralizing," he says. "It is horrible to see people making choices on whether to leave." And you won't hear Migliori offer any condolences for Lee. "I have no sympathy for this guy, if he gave away U.S. secrets. Even if he did it accidentally, this is a bad man," says Migliori, leaning back in his chair. "But if a U.S. citizen gives away secrets willingly, there's nothing you can do."..."

Newsweek 5/24/99 Daniel Klaidman and Mark Hosenball "...Frustrated by their inability to build an espionage case against the former Los Alamos scientist, the Feds had hoped to charge him with the lesser offense of mishandling classified information. Lee is said to have shifted sensitive nuclear "legacy codes" from secured government computers onto the lab's unsecured computer system. But even bringing that charge might be awkward. Last week the Feds acknowledged that at least two other Los Alamos scientists committed similar alleged computer breaches that the FBI is investigating. An Energy Department spokesman said the security clearances of the two have been suspended. ......Energy was slow to react, and the delay may have complicated the investigation into Lee's purported activities. The FBI asked to examine his computer when questions about him first surfaced, but Energy officials twice told agents Lee hadn't signed the necessary consent form. In fact, he had....."

BBC 5/16/99 Tom Carver "...The truth is that this multi-layered scandal is still unfolding. But a few days after President Clinton gave his reply, the FBI searched Wen Ho Lee's work computer and discovered that the nuclear scientist had downloaded a large portion of the Legacy Codes, the crown jewels of America and Britain's nuclear weapons programme. Every one I have spoken to about this scandal has told me that the Legacy Codes represent the combined experience of 50 years of nuclear warhead research...... But none of these questions can erase the central point: that a scientist with one of America's highest security clearances, Q clearance, was able to walk out of the Los Alamos laboratories with a Zip drive full of American and British secrets. The radar story seems to be an even more extraordinary lapse of security. Peter Lee, another scientist and no relation to Wen Ho Lee, told his bosses in May 1997 that he was going on holiday to China. At the time he was working on one of the most secret American-British research projects. Mr Lee was born in China and only a naturalised American, and the administration was already worried about Chinese espionage. He held an extensive meeting with Chinese scientists and briefed them on the submarine tracking technology. He was only working on one aspect of it, and it is unlikely that he was able to give the full picture...... But what is truly worrying is that although the FBI had been tracking Mr Lee since the 1980s, his so-called vacation in Beijing set off no alarm bells. And if nothing else the British should be worried that all their hard work can be released to the outside world so easily....."

USA Today 5/16/99 AP LA Times "...The National Imagery and Mapping Agency and its predecessor organization have produced charts or maps that played a role in at least a dozen accidents since 1985, some involving fatalities and loss of military aircraft, according to documents and interviews reviewed by the Times. On May 7, fighter pilots using outdated maps attacked the Chinese Embassy in Belgrade, killing three journalists and injuring 20 people.... ''No database available to NIMA identified the targeted location as the location of the Chinese embassy,'' NIMA spokeswoman Laura Snow said Friday in a written response to the Times' questions....

NIMA maps were a factor in three accidents in the last 15 months that killed a total of 28 people, including the clipping of an Italian gondola cable by a Marine fighter jet in February 1998 that left 20 people dead....Though the Italian gondola accident received the most attention, others involving faulty maps have occurred. About two weeks after the Marina gondola tragedy, five Navy fliers were killed when their UH-1N Huey helicopter collided with power lines. The electrical wires didn't appear on the map they used even though the same power lines killed two other people three years earlier, a military investigator said. The agency has encountered funding shortages, a loss of senior analysts and cartographers and friction between intelligence and defense communities for its services. NIMA was created in 1996 by merging the 24-year-old Defense Mapping Agency with photographic analysts and intelligence personnel from seven other Pentagon and CIA branches...."

Conservative News Service 5/17/99Lawrence Morahan "....NATO's explanation of how one of its planes accidentally bombed the Chinese Embassy in Belgrade raises more questions than it answers, a leading intelligence-gathering agency contends. "We can understand how the accident happened much better than we can understand the increasingly bizarre explanations," concluded the Texas-based Stratfor, a private intelligence-gathering company on geopolitical issues..... CIA operatives misidentified the target and pre-strike checks by the Pentagon and other allied military commands failed to catch the error, was the official explanation. In addition, neither the State Department nor other NATO allies had alerted target planners that the Chinese Embassy had moved within Belgrade four years ago. The problem with NATO's story is that the CIA is the one planning group that is least likely to make this mistake, Stratfor said in a recent report. Based on Stratfor's finding it could be that the CIA generated a target set and that NATO planners "plugged in the coordinates based on their own databases." Whatever the CIA suggested as a target got tagged with coordinates further down the line without being checked by the original planners. The likelihood that the maps were out of date was strongly contested by other analysts. "These were not just old CIA maps," Bruce Alan Johnson, a senior fellow at the Hudson Institute and former U.S. Air Force intelligence officer, told CNS. "The CIA has the best cartography division on this planet," Johnson said. "All Western agencies borrow from them. They're hands down the experts. So when that came out we all went, 'hang on, that's not on.'" NATO also has stated the incident was not a result of pilot error and that the mission was carried out as planned. But the position that there was no pilot error, and that an old map was being used, is "completely incompatible," Stratfor said. "If we are to believe both these claims, then we must assume that the target was a vacant lot," Stratfor said. The site where the Chinese Embassy stood on the night of the attack was a vacant lot four years ago, according to old maps of Belgrade and sources inside and outside Yugoslavia, Stratfor reports. The aircraft delivering the bombs was the highly-sophisticated B-2, using laser-guided bombs, which means someone had to fix a laser beam on the target. "They would probably have noticed that the empty lot now had a large building on it," Stratfor said. "The old map theory is preposterous. It assumes that the target was an empty lot and that NATO is flying air strikes based on maps alone." ..... "We do not believe that the CIA wanted to hit the Chinese Embassy on purpose," or to embarrass the president, or to take out secret Chinese radars, Stratfor said. The bombing was not accidental, Johnson said, but a calculated move by the Clinton administration to raise the stakes to the point where the U.S. will have to sit down with the Chinese and the Russians and negotiate an end to the conflict. ...."

Reuters 5/16/99 "..."There is no question that what the People's Republic of China is now doing is a direct result of what they have stolen from the United States,'' Cox said on ABC's "This Week'' news program..... Cox, however, pointed to his findings that China only had two long-range missiles at the start of the decade but now has approximately 20, with some of them aimed at the United States...... Cox blamed the Clinton administration for leaking parts of the study, saying that the news reports have been "heavily spun.'' "The leaks are coming rather obviously, I think, from the administration,'' he said. "There is no reason in the world that we should treat this national security information as if it were some political football.''.... "

Augusta Chronicle 5/18/99 Editorial "... The book Betrayal features never-before disclosures ranging from secret Chinese arms sales to dangerous foreign weapons developments that sharply contrast with the president's claim that the world is growing more ``peaceful.'' Author Gertz says: ``this betrayal ... so angered some intelligence, defense and foreign policy officials that they responded in the only way that they knew how: by disclosing ... some of the nation's most secret intelligence.'' Well, if such sensitive disclosures can help the American electorate make a better choice for their next president -- and we think they will -- then the patriotic whistle-blowers who went to Gertz should be praised, not condemned...."

Washington Times 5/16/99 John Bolton "...The Clinton administration was quick to blame the tragic bombing of China's embassy in Yugoslavia on an intelligence failure. Although the precise cause of the error might never become public, and although there is unquestionably no excuse for it, the administration's nearly instantaneous decision to blame faulty intelligence does not ring true....Moreover, this unbelievable mistake should not obscure the larger issue of President Clinton's fundamental distrust both of intelligence gathering as an instrument of national policy and the corollary requirements of counterintelligence to protect highly sensitive, national security information. The evidence is clear that the administration's mind-set is either hostile or indifferent to the intelligence function. Mr. Clinton has consistently mismanaged what should have been, for any administration, the primary obligation of stewardship for the country's intelligence capabilities. It is not simply that establishing the necessary infrastructure for intelligence (satellites and other interception and measurement capabilities as well as human sources, among other things) is highly expensive, although it certainly is that. Nor is it only that gathering intelligence often results in risking the lives of both American and foreign sources, although that too is true. Most important of all is the critical and potentially dispositive advantage that a sophisticated intelligence capability gives us in safeguarding all aspects of our national security, and ultimately, therefore, our entire society..... He is the first president in memory not to receive morning briefings directly from the Central Intelligence Agency along with his daily copy of the written "President's Daily Brief." Even today, CIA briefers rarely see the president personally. Thus, in more cases than not, the intelligence community's raw product, and even its analysis, is filtered through policy advocates and actors before it actually gets to the president. ...."

Washington Times 5/16/99 John Bolton "...The proper use of intelligence sharing, such as in the NATO operations over Yugoslavia, can be immensely valuable for the United States and its allies, a "force multiplier" in the fullest sense of the phrase. But undertaken promiscuously, as the Clinton administration has so often done, can be exceedingly harmful to U.S. interests. Releasing extensive amounts of satellite imagery, for example, in public relations campaigns to support policy objectives allows knowledgeable analysts from non-allies to learn enormous amounts of technical information that can be turned against the United States. By better understanding the pictures that result from overhead image-taking, foreign powers can devise concealment and camouflage strategies that prevent U.S. assets from obtaining accurate, timely information on what is actually under way in their countries. Intelligence analysts, for example, widely believe that the United States was surprised by India's 1998 nuclear testing because the Indians, perhaps with Russian assistance, had done precisely that with their nuclear weapons program, thus robbing us of critically important information...."

Washington Times 5/16/99 John Bolton "...Not the least of the mistakes was the consistent derogation of the CIA's directorate of operations, which both gathers intelligence covertly and (on a surprisingly small number of occasions) engages in more active undercover measures. It may be that "DO" is currently not so disfavored as during most of the administration, but considerable damage was clearly done at the outset. Even this "good news" conceals many lost opportunities, and it may be that one of the few pluses from the Chinese Embassy bombing is that DO operations will be substantially increased, not simply restored to past inadequate levels. American political campaigns have rarely treated the intelligence function as a central subject of debate. Growing signs, however, that foreign policy and national security matters may well figure more prominently in the 2000 campaign than in the last two presidential elections may provide an opening for the broader discussion of intelligence-policy questions. The campaign might at least help identify among the candidates which ones are more likely to view intelligence in the tradition of Presidents Eisenhower and Reagan, or whether Mr. Clinton's pitiful legacy is to continue...."

USA Today 5/19/99 Peter Eisler "... It took just over a year for Raymond Mislock, associate deputy director at the CIA, to conclude that his ideas for fixing security problems at the Department of Energy's nuclear weapons plants and laboratories were falling on deaf ears. Mislock was appointed early in 1998 to the DOE's Security Management Board, a government-wide panel set up to address concerns that the department lacks proper safeguards for millions of secret records and thousands of tons of nuclear material in its custody. "I expected the (DOE) wanted the input of representatives from other agencies," Mislock told department officials in a March 16 letter. "Unfortunately, my experience with the board indicates that it is a feckless exercise with no accomplishments almost 15 months after it was established." ..."

USA Today 5/19/99 Peter Eisler "... A USA TODAY examination of the DOE's security record shows it has spent two decades frustrating efforts to bolster protections against spies, thieves and terrorists across the network of plants and labs where it develops, maintains and decommissions U.S. nuclear weapons. USA TODAY interviewed dozens of sources and reviewed hundreds of pages of documents. Time and again, the reporting shows, the Department of Energy has shelved critical reports, ignored proposals for corrective action and punished officials who dared to speak out about concerns. ...."

USA Today 5/19/99 Peter Eisler "...As recently as 1996, months after top DOE officials learned of Lee's activities, the department shelved a plan for new guidelines that might have helped block data transfers from classified computers. "It dealt with issues like how to track who's removing information from systems and who would have to be physically present if anybody was in a facility with classified systems," says Woody Hall, the department's chief information officer until last year and a main architect of the proposal. "The labs were very vocal in opposing it. ... We couldn't overcome the objections." ...."

USA Today 5/19/99 Peter Eisler "... In 1997, for example, site managers helped bury a report by the department's Office of Safeguards and Security, which cited vulnerabilities at several key facilities. Los Alamos and the Lawrence Livermore National Laboratory outside San Francisco took hits, as did the Rocky Flats site, an idled weapons plant near Denver. The report decried a steep decline in security spending at DOE facilities. It noted that guard forces had dwindled 42% from 1992 through 1996, alarm systems needed replacement, employee background check programs were backlogged and computers were increasingly susceptible to outside penetration. Heavy complaints from site managers spurred DOE officials to commission a follow-up assessment with heavy participation by site managers, who painted a far brighter picture of the agency's security...."

USA Today 5/19/99 Peter Eisler "...In April 1997, as the agency readied its Annual Report to the President on the Status of Safeguards and Security, officials opted to "eliminate some of the unsupported conclusions" reached by the security office, according to an internal memo by then-Assistant Energy Secretary Tara O'Toole. Those conclusions, she added, did not present "an accurate and balanced picture." The report to the president did include toned-down comments reflecting some of the security office's chief concerns. But like previous reports, which also questioned computer security and physical protections , the legally required assessment was held back from the White House.

USA Today 5/19/99 Peter Eisler "...Between 1992 and 1996, according to agency records, annual security inspections performed at DOE sites by the evaluations office dropped from 13 to three. Moreover, a federal judge last month blasted officials who oversee that office for retaliation. The retaliatory acts reportedly included a forced, out-of-state transfer for an employee who went public with evidence that safety inspectors covered up problems at DOE facilities. "It's all the same people and I think they'll continue to fall back into the old ways," David Ridenour, former head of security at the Rocky Flats weapons plant, says of the agency's reforms. "If there's a problem, classify it, hide it and get rid of the people who brought it up."

USA Today 5/19/99 Peter Eisler "...But Richardson, a former New Mexico congressman, knows how to protect the agency on Capitol Hill. This month, he quietly derailed a Commerce Committee hearing on personnel disputes involving DOE security. In written testimony submitted for that hearing but never aired, McCallum, the DOE security chief, said he suffered "retaliation" for criticizing "lax security at the DOE laboratories." ..."

AP 5/20/99 H Josef Hebert "...Intelligence experts were worried three years ago about the possible theft of secrets about America's nuclear arsenal and believed the Los Alamos weapons lab was the most likely source, an Energy Department intelligence officer told a Senate panel Thursday.... "What was done, in short was nothing,'' Notra Trulock, acting deputy of the Energy Department's Office of Intelligence, said of the concerns expressed by intelligence experts in early 1996 about potential loss of the top-secret computer codes. Lawmakers have applauded Trulock for raising alarms as early as 1995 about the possible theft of nuclear secrets from weapons labs, including information in the 1980s about a sophisticated warhead known as the W-88......Trulock, appearing before the Senate Energy and Natural Resources Committee, described repeated attempts in early 1997 to bring his concerns about espionage and lax security at weapons labs to then-Energy Secretary Federico Pena. He said that he was repeatedly thwarted by senior DOE officials, including Pena's deputy, Elizabeth Moler, and that Pena knew nothing of the espionage concerns for about six months. Trulock in the past also has accused Moler of muzzling him when he tried to testify before Congress..... Trulock, who was director of the Office of Intelligence from 1994 into early 1998, said his concerns about espionage at the labs were viewed in 1997 with skepticism and "outright denial'' among senior DOE officials. They were dismissed as views of "Cold War warriors,'' said Trulock..... Sen. Frank Murkowski, R-Alaska, the committee chairman, derided the "cavalier attitude about security'' described by Trulock and suggested that senior administration officials should not be let off the hook..... Attorney General Janet Reno announced on Thursday that a veteran prosecutor, Randy Bellows, would head a Justice Department investigation into whether Justice or the FBI made any mistakes in the Wen Ho Lee investigation, dating to 1996...."

National Review 5/31/99 Douglas Paal "... The FBI had a distinguished team of counterintelligence experts on China up to the 1980s. The Bureau is now said to have gone through a generational change in personnel that has weakened the effort against Chinese intelligence in the short run, with a view to building a new team of China experts for the long run. Moreover, Americans readily come to like their Chinese friends. It is difficult to think that the thoroughly pleasant, skilled, and hospitable colleagues they have come to know would pour extra drinks just to discover new facets of weapons miniaturization or the vulnerabilities of American aircraft carriers...."

AP 5/20/99 JOHN DIAMOND "... Though the government is prone to leaks, the unauthorized publication of classified documents that in most cases are just a year or two old is rare. It has touched off widespread concern in the intelligence community.... ``These documents carry some of the highest classifications in the U.S. government and it's absolutely astonishing that they would be published in this way,'' Aftergood said. ``Betrayal'' by Bill Gertz, a reporter for The Washington Times, presents a critical account of Clinton administration security policy that tracks closely to stories Gertz has written over the last several years. The original articles, however, did not include reprints of the classified documents.....U.S. officials interviewed Thursday confirmed the authenticity of the documents and voiced concern..... But his book states the Clinton administration carried out a policy of appeasement of real or potential U.S. enemies that ``so angered some intelligence, defense and foreign policy officials that they responded in the only way they knew how: by disclosing to the press some of the nation's most secret intelligence.'' Gertz wrote that his sources were ``unsung heroes'' who ``jeopardized their careers to expose wrongdoing.'' ..."

AP 5/20/99 JOHN DIAMOND "...The [Gertz' Betrayed] book's appendix reprints all or part of 23 documents from the Clinton administration -- some as recent as last year -- ranging in classification from confidential to top secret. Several are marked ``umbra'' or ``gamma,'' code words for information derived from electronic intercepts. A 1996 U.S. intelligence report disclosed that the North Korean government had detailed three cases of cannibalism stemming from famine. It was classified at the ``code word'' level, among the highest levels of classification. A secret dispatch written last August by Larry Robinson, a State Department official in Seoul, raised questions about leader Kim Jong-Il's hold on power. ..... An April 1997 Pentagon report described how the Navy inserted an intelligence team into a Coast Guard inspection crew that searched, unsuccessfully, for evidence of the laser weapon aboard a Russian merchant ship. The memo alleged the ship was involved in spying on U.S. submarines and appeared to direct a ``laser emanation'' at a helicopter carrying a Navy officer. No weapon was found. And a 1997 CIA report, based in part on electronic intercepts and spy satellite imagery, indicated Russia was building a bunker and subway line for use in evacuating leaders in a military emergency..... "

Koenig's International News 5/19/99 Charles Smith "... Although Commerce Department national-security export rules were relaxed in April 1994, a Commerce cable to the CIA that same year nonetheless states, "There is a presumption of denial for the export of controlled products to military end-users or for military end-use in China." Not only was the firm led by a Chinese general, the so-called "civilian company" was heavily packed with Chinese army officers and experts. One member of Galaxy New Technology management, according to the Defense document, was Director and President Deng Changru. Deng also was a lieutenant colonel in the PLA and head of the PLA communications corps. Another Chinese army officer on the Galaxy New Technology staff was Co-General Manager Xie Zhichao or Lt. Col. Xie Zhichao, director of the COSTIND Electronics Design Bureau. Still another embarrassing aspect of the 1994 transfer deal is that a key figure in the founding of Galaxy New Technology in 1992 is Hua Di, a Stanford University faculty member who returned to China in 1997. ... In 1992, COSTIND's Lt. Gen. Huai -- the same Lt. Gen. Huai who attended the November 1994 meeting with PLA Gen. Ding -- contacted Hua to start a joint venture called Galaxy New Technology. Hua in 1996 told the Far Eastern Economic Review: "Lewis and I were matchmakers," regarding Galaxy New Technology and SCM. "Huai is my good friend." ..."

Statement of Lt. Jack Daly "....My name is Lieutenant Jack Daly. I am an active duty regular U.S. Naval Intelligence Officer who, prior to my transfer to San Diego last year, was stationed at the Canadian Pacific Maritime Forces Command Base, Esquimalt, Victoria, British Columbia, Canada. My intelligence liaison assignment with the Canadian Armed Forces was under the auspices of the Chief of Naval Operations/Intelligence Directorate (CNO/N2) Foreign Intelligence Liaison Officer (FILO) program, managed by the Office of Naval Intelligence (ONI). On 4 April 1997, I, along with a Canadian Air Force pilot, Captain Patrick Barnes, were wounded aboard a Canadian CH-124 helicopter when we were lazed (shot/targeted with a laser) while on an ONI tasked surveillance mission. This surveillance mission was tasked against the Russian merchant ship KAPITAN MAN, which was located five nautical miles north of Port Angeles, Washington in the Strait of Juan de Fuca. As a result of this lazing, both Captain Barnes and I suffered irreparable eye damage resulting in permanent retinal damage (see appendix A). Captain Barnes has been permanently grounded as a result of this incident and has lost all flight qualifications. He will never fly again. The statement that the Pentagon released to the press on June 26th, 1997, that our injuries were healed, was erroneous. Both Capt. Barnes and I continue to suffer agonizing chronic pain 24 hours a day from this incident and our vision continues to deteriorate, with little expected relief since there is no known effective medical treatment. The pain symptoms we have experienced since the day of the incident have not diminished but have actually increased in severity. The burns to the retinas of both of my eyes have turned into scar tissue that continues to grow resulting in enlarging scotomas or spots in my field of vision.....To make matters worse, the exact type of device that was used against us is still unknown. According to the expert analysis conducted by the U.S. Army, Air Force and Navy tri-service group headed by the U.S. Army's Medical Research Detachment (USAMRD) of the Walter Reed Army Medical Center, at Brooks Air Force Base, San Antonio, Texas, it could have been one of two known devices, or possibly a device the United States has no knowledge of. Initially, based on the evidence exhibited through extensive testing and evaluation of the physical characteristics of the damage and changed function of our eyes, the possibility exists that the device may have been a Laser Range Finder (LRF) of the Neodymium-Yttrium Aluminum Garnet Crystal or Nd-YAG laser. The other possibility is that of a Fosterite laser which is used to record sound, i.e., the signature of the propeller of a surfaced submarine. In essence, this incident left Capt. Barnes and I as victims of what could be argued was a hostile act in a undeclared war, an act of terrorism and, at minimum, a federal crime. The use of lasers that blind, whether immediately or years later, to ward off surveillance is in direct violation of "Protocol-IV" of the "Certain Conventional Weapons Convention." .... What followed from this point forward was a coordinated effort conducted by select individuals to disprove that this incident had ever actually occurred. Evidence was altered, ignored, omitted and refuted. The subsequent so-called investigations and reports that followed served only to support the original intentions of a cover-up. Unfortunately, the evidence of the case remains an errata event which the cover-up cannot hide; both Captain Barnes and I have retinal damage from a lazing incident which occurred in the line of duty. ....I sent a letter, dated October 6th, 1998, to the Attorney General of the United States, Janet Reno, outlining my concerns regarding this incident and it's handling. To date I have received no reply. A follow-up phone call to the Attorney General's office indicated that the letter had been passed on to the National Security division at the Federal Bureau of Investigation (FBI). After numerous phone calls to that office, I was informed that it had once again been passed on to the Washington, DC, field office. Repeated telephone calls to this office in order to ascertain the whereabouts and status of this letter have been futile, and numerous requests for a return call have been ignored. This is not surprising considering that in an interview with an FBI agent from the Seattle field office in April 1997, the statement was made to Capt. Barnes and I that "since no device was found during the search the case is considered open and shut." Recent consultations with an Assistant United States Attorney revealed that this method of handling this incident is contrary to the norm under U.S. laws and enforcement thereof.....There will be those who will claim that this approach was taken "for National Security" reasons. However, it is our National Security that has been jeopardized and our nation which has been weakened. Considering the ever increasing instability around the world, particularly in Russia with it's numerous nuclear weapons and instability, our National Security depends on increased vigilance now more than ever before..... In fulfilling my duty as a Naval Officer and while upholding the oath that I took to protect and defend the United States against all enemies, foreign and domestic, I was wounded in the line of duty. However, for some unknown reason, since April 4th, 1997 I have been accused of having fabricated the entire event and labeled a liar, a lunatic and a traitor. My loyalty to the United States Navy has been questioned and I have been passed over for promotion. I have even been accused of withholding intelligence from the U.S. on this issue. The actual reasons why this incident was handled the way it was is unknown. However, the information provided today paints less that a "rosy" picture of the real relationship between Russia and the United States. My greatest fear is that our naïveté and ignorance will continue to foster complacency and a false sense of security that will prove to be our undoing...."

Hotline 5/25/99 Fox - Carl Cameron Special Report 5/24/99 "....Cameron again: "Another former Clinton fundraiser, Charlie Trie, has now also pleaded guilty and has agreed to cooperate with Justice Department investigators. Sources say they have reason to suspect that Trie also may have been involved with Loral and Hughes and their export relationship with China. The Pentagon concluded more than two years ago that Loral and Hughes had quote, 'harmed national security,' by helping China with its missile technology. Despite that, the president went ahead and has continued to allow Loral and Hughes to launch its satellites in China. That is what prompted a congressional investigation that on Tuesday will release its long awaited report, including revelations of nuclear espionage. And Fox News has learned that the investigators had no idea that Johnny Chung was told, above all else, to keep silent about Loral and Hughes" ("Special Report," FNC, 5/24)...."

Softwar.com 5/25/99 "...However, according to the 100 page Federal indictment from one of the key undercover agents, Chen and Ma had to call back to PLA Headquarters in Beijing to obtain the 2,000 machine guns. According to the Custom agent's deposition, Chen and Ma had difficulty in getting the "barrels" because they required "higher-level permission". Yet, Poly Technology Executive Director, Xie Datong, stated on the record that the machine gun transfer did not require permission from the Chinese General Staff. Xie Datong, also a corporate officer of Poly's American subsidiary PTK, claimed the weapons were transferred from stockpiles from the General Logistics Division of the PLA. Whether Chinese Generals attempted to smuggle machine guns into America may never be answered. Ma and company fled the country. Gun runner Robert Ma, and all of the Chinese executives that served Poly Tech, escaped the grasp of the inept Janet Reno and Louis Freeh. Ma was reportedly one step ahead of FBI agents who had a warrant for his arrest. Clearly, the Chinese Generals made a profit from illegal gun smuggling. President Jiang Zemin certainly has no incentive to return Robert Ma into the hands of U.S. justice, nor has Bill Clinton made any attempt to ask his "strategic" partners in Beijing...."

Softwar.com 5/25/99 "...However, the Poly Tech story goes deeper than just a few Chinese Generals and a princeling or two. According to another document obtained from the Commerce Dept., the 2,000 machine guns were to be transferred to the Long Beach port in California onboard the COSCO ship, the Princess Bride. However, "a leak from the State Dept alerted the company, which then canceled the delivery." "COSCO," according to Defense Department intelligence officials "operates a fleet of ELINT (electronic intelligence) trawlers for the PRC government... When China delivers missiles or chemical agents to the Middle East, specially outfitted COSCO ships deliver them."

House of Representatives 5/24/99 Rep. Kurt Weldon (R-PA) "...For 7 years, Mr. Speaker, we have heard the rhetoric coming from the White House that the world is safe, there are no problems, our security is intact, and therefore, we can dramatically cut the size of our defense forces and we can, in fact, shift that money over to other purposes. During the 7 years that that has occurred, Democrats and Republicans alike in this body and the other body have joined together to constantly remind the administration that things were not quite as good as they were being portrayed to the American people. Unfortunately, we were not as successful as we would have liked. In fact, Mr. Speaker, State of the Union speech after State of the Union speech the President would stand before the American people and would talk about the economy, would talk about jobs, would talk about crimes domestically, but no mention of national security concerns....In fact, Mr. Speaker, what has been occurring over the past 7 years with strong concerns expressed by both Democrats and Republicans alike in this body is that we have committed our troops to too many places in a short period of time to be effective in modernizing for the future and in protecting America's vital interests around the world. ....In the time period from the end of World War II until 1991, during the administration of all those Presidents in between, from Harry Truman through Democrat and Republican administrations ending with George Bush, all of those commanders in chief, as they have the ability to under our Constitution, deployed our troops a total of 10 times, 10 times at home and around the world. Some of those deployments were very serious, like Korea and Vietnam and Desert Storm. Since 1991, Mr. Speaker, our current commander in chief has deployed our troops 33 times, 33 times in 8 years versus 10 times in 40 years. Mr. Speaker, none of these deployments were paid for, none of them were budgeted for, none of these deployments had the administration asking the Congress to vote in support of the deployment before our troops were committed. .....there were documents internally within the intelligence community, submitted to the administration, outlining the CIA's concern that if the bombing took place it would cause a humanitarian catastrophe, and that is exactly what has happened. It is far worse than just the humanitarian catastrophe. In fact, many of those analysts said that we actually contributed to the refugee crisis because when we bombed, it obviously caused the observers who were in the former Yugoslavia to leave that country, which then gave Milosevic a free hand to continue at a much higher level the ethnic cleansing and the significant attacks on innocent people. So in effect, Mr. Speaker, what the intelligence community was saying to us as a Nation, prior to a decision to conduct the aerial campaign, was that if we went ahead, we would cause the situation to become much worse. That is exactly what has occurred. ....We have done something else, Mr. Speaker. We have managed to do what one colleague of mine from the Russian Duma told me the Soviet communist party could not accomplish in 70 years, after expending billions of dollars, to convince the Russian people that America was evil, that we really were designed as a nation to hurt innocent people. He said Russians are now convinced, after some 55 days of bombing, which it was when he was here, that this country really is evil. So we have managed to do in 55 days what the Soviet communist party could not accomplish in Russia in 70 years......Every Member of Congress should read this book. In fact, it has hit the bestseller list in just the first week it was on the stands. Why is this book so important, Mr. Speaker? Because it details, in depth, an analysis of this spin on defense concerns in this country over the past 7 years...."

Washington Weekly 11/17/97 "...The most shocking and devastating revelation made by Bob Woodward's story Friday is that after Chairman Thompson announced two weeks ago that he was suspending his public hearings, the FBI obtained intelligence showing that the Ministry of State Security in Beijing -- the Chinese equivalent of the CIA -- boasted it had been successful in "thwarting" the congressional inquiry. How could Chinese agents be able to "thwart" an inquiry by the U.S. congress? The answer is not hard to find. One need only look at those who irrationally attacked Chairman Fred Thompson for his opening statement, where he revealed that there was a Chinese plot to influence the election. His statement was deliberately non-partisan, so there would be no partisan reasons to counterattack. But the interests of the Chinese intelligence agency would be served. Senator John Glenn said: "I think I have seen everything the chairman has seen, and I recall nothing to document allegations that China had done anything illegal." After the FBI offered to show the classified evidence to any Senator who wished to see it, Senator Glenn fell strangely silent. Even more shocking was Senator Glenn's offer to negotiate an immunity agreement on behalf of John Huang. How did John Glenn end up representing a Communist agent whom Senate staffers had been unable to locate? .....Chairman Thompson's landmark opening statement included a reference to the U.S. media. He referred to intelligence showing Chinese agents "attempting to communicate Beijing's views through media channels in the United States." It comes as no surprise, then, that network and cable news anchors took the position of Senator Glenn in ridiculing Thompson's allegation....... And there is at least one FBI counterintelligence agent who is so outraged by the cover-up of his superiors that he is now leaking to Bob Woodward....."

WorldNetDaily 5/27/99 J.R. Nyquist "...Let's put the Cox Committee's report in perspective. Last year Russia and China officially announced a "strategic partnership." In the words of the Chinese government, this partnership was founded to challenge the "perceived global dominance of the United States." Did our vaunted CIA anticipate this new alliance between Russia and China? Probably they were caught napping, like the time Saddam Hussein invaded Kuwait in 1990, or when India conducted a number of surprise nuclear tests in May 1998. Judging from U.S. foreign policy, there has been no official reaction to the new Moscow-Beijing axis. From all external appearances, the U.S. intelligence community has not yet recognized that the "former" Communist Bloc is reappearing under a new guise. And yet, we were warned of this impending Russian-Chinese partnership as far back as 1984, by a Russian KGB defector named Golitsyn. We were told of a secret strategy of Russian-Chinese collusion. We were told that America was still the "main enemy" of the Chinese, and that one day Russia would unite with China into "one clenched fist." But few believed these warnings, because most Americans assumed that the FBI and CIA would have long ago discovered any Sino-Soviet collusion, and American policy would have been adjusted to meet this challenge. Unfortunately, America's intelligence and counterintelligence functions are tertiary, and will never be allowed to interfere with the making of money, which is primary. As President Coolidge once said: "The business of America is business." And as it happens, American business has become deeply involved in China....."

THE Patrick Henry Center http://WWW.PatrickHenryCenter.Org Gary Aldrich 5/28/99 Freeper A Whitewater Researcher "..."...a real enemy (Communist China) steals us blind, right under the FBI's noses...with their knowledge...."Thanks a lot for guarding your nation, FBI...."Thanks a lot for putting my kids and yours right back into a new cold war by being too afraid to face off with Bill Clinton and his lefty friends!...we warned you the Clinton White House was dangerous to our national security...."You even tried to punish us for doing our jobs -- to protect national security!..."Mr. Freeh: You tried to prosecute me..."Mr. Director...Why don't you tell the nation what you really know about the corrupt Clinton Administration?...the FBI is not the only agency that stands accused of failing to come to America's rescue...Mr. Aldrich: "What is much more troubling to me is that the very people and institutions we created to prevent this unprecedented espionage - may have actually aided and abetted our enemies by standing by and watching it happen, while punishing and threatening those brave whistle blowers who tried to prevent it...."

AP 5/29/99 "...The government expelled an Indian scientist who worked in a U.S. weapons lab because he was connected with India's nuclear-weapons program, Newsweek reported Saturday. The magazine did not report the scientist's name or reveal its sources for the man's removal from the Los Alamos National Laboratory in New Mexico. "Last year Los Alamos expelled an Indian scientist when it was discovered he had ties to India's nuclear-bomb program,'' Newsweek said it has learned....."

Washington Weekly 5/31/99 RICKI MAGNUSSEN "....TIMPERLAKE: We need to put good money on the table to rebuild our military and go back to our labs. We have to break the criminal conspiracy surrounding the president so that we don't create new technology initiatives that are immediately compromised the minute that we create them. We have to break the conspiracy of the 122 witnesses that have fled the country. Until we do that we have to look very carefully at the ability of keeping anything secret and it originates from the top, the oval office. This is the beginning of the rebuilding of American national security........ No one could believe that the next century would start with that much danger. Six years ago the world was at peace and prosperity and we are going into the next century now with an emerging threat that has proven in the last 50 years to be willing to use military force directly against America. Korea is an example of that......TIMPERLAKE: That's correct. There are high-tech weapons that I'm sure that they don't want to talk about. And to make matters worse, there are obviously at all times high-tech weapons on the drawing board, basic research that leads to the new break-through no one wants to talk about. Unfortunately and tragically, the People's Republic of China has apparently forged this alliance to buy all the Russian high-tech equipment. So not only do they know all of our weapons capabilities, limitations, and where they are, they are buying from the Russians either their weaponry or knowledge of how to measure our systems. That's what they used to do just as we did to them....But to protect the sources and methods it may be worth keeping the 30% buttoned up, that's important. You have to yield to the integrity of chairman Cox on that one...."

NewsMax.com 5/30/99 Inside Cover "...One of Inside Cover's favorite media whoppers about America's newfound national security hemorrhage is this: Most of the secret information the Chinese now have access to disappeared over the transom during the Reagan and Bush administrations. Not according to the actual chronology available in the Cox report. Turns out, of the eleven most serious episodes of nuke-related tech tranfers noted by the bi-partisan panel, eight took place during the Clinton years. Except for data on the neutron bomb, which China obtained during the Carter administration, not a single serious breach of nuclear security came to light before 1993. But doesn't that bolster the arguments of Clinton spinmeisters that it was this administration, and not prior Republican presidents, who ferreted out Chinese spying? Not exactly. Except for a "Walk-in"; an unidentified Chinese agent who popped up out-of-the-blue in a Far East CIA office in 1995, Clinton national security officials -- along with the rest of us -- might still be in the dark about the most serious spy case of the nuclear age. To the astonishment of U.S. intelligence, the Chinese tipster revealed that his Beijing bosses had the plans for America's deadly W-88 Trident D-5 nuclear warhead...."

FOX NEWS 6/10/99 Reuters "...In a string of overwhelming votes, the House approved proposals to tighten security at U.S. nuclear labs and bolster technology export controls in response to a congressional panel's report last month that China had obtained a wealth of nuclear secrets during two decades of concerted espionage. The House voted 428-0 to implement at least portions of 26 of the panel's 38 recommendations, attaching them to a $288 billion defense authorization bill. The amendment establishes counter-intelligence programs at the Department of Energy nuclear labs, strengthens monitoring of overseas satellite launches and controls of high-technology exports, and institutes a variety of reporting procedures on export licensing and Chinese espionage activities...... Other amendments, approved by voice votes, would institute polygraph tests for department employees with access to classified information, subject contractors to civil penalties for security violations and require an annual report on department counter-intelligence programs. ...... Energy Secretary Bill Richardson, appearing before the Senate Intelligence Committee, said he opposed a Senate plan to reorganize the department's nuclear security and counter-intelligence operations..... "China must know this issue will not fade away,'' DeLay said. "The Congress must be strong where the president has been weak.'' The House voted 284-143 to adopt DeLay's amendment barring military-to-military contacts with China, but rejected 266-159 an amendment by Rep. Jim Ryun, a Kansas Republican, to place a two-year moratorium on foreign visitors at nuclear labs....."

Koenig's International News 6/10/99 Charles Smith "...In 1997, Commerce export enforcement officials in Beijing could not identify Chinese Army owned companies....In 1996, American computer maker SUN Computer Corp. exported a super-computer directly to the Chinese Army. According to the Cox report, the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) explained that the actual buyer of the computer was the "Yuanwang Corporation" and that Sun was aware of "this corporation's PRC military ties." According to a 1997 e-mail from Bureau of Export Administration (BXA) officer Mark Bayuk, a chart provided by the Defense Intelligence Agency (DIA) was used to "discover that Yuanwang Group, the importer that is alleged to have imported the Sun Computer shipped to the National Defense Technical Institute of China in Changsha, was directly under the control of COSTIND."..... While export control officials were scrambling to find some information on PLA operations - the Commerce Dept. sales division, under Ron Brown, was well informed. There was a published list of Chinese Army companies and it was provided by one of the top Generals in the PLA. In 1995, Secretary Perry informed Commerce Secretary Ron Brown that his PLA contact was "General Ding Henggao" of COSTIND. "Dear Ron," wrote Perry in his 1995 letter to Secretary Brown. "I recently received a letter from General Ding Henggao, the Minister of the Chinese Commission for Science Technology and Industry for National Defense (COSTIND). As you know, General Ding and I head the Sino-American Joint Defense Conversion Commission that was established during my visit to the PRC this past October (1994)." "General Ding's staff has prepared a list of 49 potential projects... We have provided the list to Barry Carter, who is a member of the Commission. Your Bureau of Export Administration is working to make information available to concerned U.S. businesses."..."

Albuquerque Journal 6/13/99 Editorial "...In place of the Ryun amendment, the House opted to pull in the welcome mat on foreign visitors until common-sense security measures, such as background checks, are reinstituted. The DOE waived the prerequisite of background checks on visitors to Los Alamos National Laboratory in 1994 at the insistence of the University of California, Jack Anderson reports in an OpEd column opposite this page. The university manages both of the weapons labs in New Mexico. UC officials took a laissez faire attitude toward security, according to General Accounting Office reports cited by Anderson. The GAO found that, in the interest of promoting a more campus-like atmosphere, unescorted foreign visitors were allowed to roam sensitive areas of Los Alamos after hours. Now, when it is clear even in the ivory towers of UC that Los Alamos is not Berkeley, university administrators can point fingers at the Department of Energy. Security? Hey, that's DOE's job. Energy and FBI officials also lay blame off on each other for failing to keep the other informed on security issues.

American Spectator 5/28/99 "....But now comes the Cox Report and things are not so funny. Worse still, there is the fear that after losing nuclear technology to China the administration's Talleyrands, Albright and Berger, ably assisted by the President, will provoke a new Cold War. What makes the Cox Report a particularly melancholy occasion for me is that many of its revelations were earlier published in The American Spectator. Just as the Starr Report confirmed the Troopergate stories of Clinton's reckless libido, the Cox Report confirms accounts in the Spectator about this administration's illegal technology transfers to the Chinese and the Chinese's wide-spread espionage....Reading about the Cox Report's findings is frustrating business for me. News of Clinton's close relationship with the shadowy Indonesian banking family in control of the Lippo group was reported by Jim Adams in the Spectator years ago. Michael Ledeen began reporting on dangerous technology transfers in the early 1990's. Though it was not original reporting, Ken Timmerman reported one year ago that the Loral Corporation and Hughes Electronics had illegally given the Chinese sensitive intelligence on how to improve their missiles. In reporting that was original, Timmerman explained how the China Aerospace Technology Import-Export Company (CATIC) was throughout the 1990's gobbling up U.S. technology. In October 1998 he exposed 40 California companies involved in CATIC's commercial and spying network. Timmerman's reports began in March of 1995. In an astonishing account that should have caught many a government official's eye, Timmerman reported on how the Chinese bought an entire plant in Columbus, Ohio, where our B-1 bombers and C-17 heavy transport aircraft had been produced. He described how a Chinese procurement team was allowed to videotape assembly line equipment in the plant's secured area. In subsequent articles he has reported how the Chinese have, under Clinton's watch, repeatedly purchased U.S. defense production equipment at auction, often illegally. The administration has only prosecuted one case and even in that case it has not been able to recover the illegally exported equipment....."

NewsMax.com 6/2/99 Inside Cover Kenneth Timmerman information "...The Rocky Flats security scandal may be the most damaging yet, since the cover-up is apparently still ongoing. ...According to Timmerman, "Richardson is now attempting to prevent a top DOE official in charge of safeguards and security from testifying before Congress. Why? Because that official, Edward J. McCallum, had made clear his intention to warn Congress and the public of devastating gaps in security procedures at nuclear storage sites such as Rocky Flats." Richardson already knows what McCallum has to say, since McCallum privately warned the Clinton administration last January about trouble at Rocky Flats. The consequences of the cover-up could be dramatic. "Terrorists could easily penetrate the facility and steal weapons grade plutonium, or construct and detonate a nuclear bomb on the site without DOE security teams being able to prevent it," reports the Spectator, based on what McCallum told Timmerman. It gets worse. McCallum was fired from his DOE post, or rather, "placed on adminstrative leave without pay" just last month. Bill Richardson personally gave the order to axe the whistleblower because he was "pissed off" at McCallum's attempts to inform Congress, according to what sources have told the Spectator. White House flaks may have a tough time spinning the Rocky Flats scandal for other reasons. Not only has the administration "repeatedly and obstinately" refused to correct the problem, but Mrs. O'Leary may be vulnerable to conflict of interest charges. Timmerman writes: "Under O'Leary's stewardship, Rocky Flats cut its security force by 40 percent, allowing prime contactor Kaiser-Hill LLC to improve its profit margin despite an overall reduction in the funds it received from DOE. Indeed, Kaiser Hill actually earned performance bonuses from DOE, because its cleanup operations were going ahead on schedule." Kaiser-Hill was apparently grateful for Mrs. O'Leary's indulgence, since she wound up on the board of ICF Kaiser, its parent company, upon her retirement from DOE. She remains on Kaiser's board today, while her husband does consulting work for the company....."

USA Today 6/3/99 Edward T. Pound "....With the Chinese espionage scandal an ugly reminder of what can go wrong when spies aren't caught, Defense Department officials are grappling with another big problem: the near paralysis of the Pentagon's system for investigating backgrounds of government and defense-contractor employees. Department officials say the backlog of cases is enormous. They estimate that 600,000 investigations need to be done on Pentagon and contractor employees. Things are so bad that a computer system that was supposed to help cut the backlog breaks down for days at a time, disabling background operations..... In truth, it is barely creaking along, unable to keep up with its workload and beset by years of internal strife over the management practices of Steven Schanzer, its director, and his predecessor, Margaret Munson..... Schanzer is being reassigned to the Department of Energy....For sure, one of Munson's most controversial moves was her effort to simplify security investigations to speed up completion times. That new approach called for substituting less-thorough telephone interviews for some in-person conversations with neighbors and others acquainted with security applicants. She says the neighborhood interviews, in many cases, were a waste of time..... "

Curt Weldon Website 6/8/99 "...Today we have the Secretary telling us that our labs are secure. I can tell you right now, Mr. Speaker, there are no controls on e-mails that are being sent out of our labs at this very moment. They will tell you they have a software system that looks for keywords, that if an e-mail is sent to Beijing or some other city and a keyword is in that e-mail, it raises a flag and that person then will be investigated. Raising a flag after the e-mail leaves the laboratory does us no good, Mr. Speaker. So for Richardson to say that secure measures are in place today is wrong, it is factually wrong, it is not correct, and he needs to be honest with the American people...."

Curt Weldon Website 6/8/99 "... Now, as extensive as this is, Mr. Speaker, I can tell you this is only scratching the surface. In one of our House hearings one of our colleagues asked the FBI when they were doing the investigation of these linkages how much of what they know is now available in public form with all the reports, all the investigations, how much of what the FBI and the CIA knows is available to the public, and this was the answer: Less than 1 percent. So, as broad as this is, as documented as this is, we only know publicly less than 1 percent of what the FBI and the CIA know about the linkages between PLA front organizations, front companies and financing mechanisms..."

INVESTOR'S BUSINESS DAILY 6/9/99 Paul Sperry "...Former Reagan Defense Secretary Caspar Weinberger says he's not surprised. ''Every existing roadblock inhibiting (China's) nuclear progress has been removed over the past six years,'' he said in a foreword to an abridged book version of the Cox report. He also cited the administration's ''apparent reluctance to block or punish espionage.'' It's now plain that the administration, which still sees China as a ''strategic partner,'' departed from long-standing national security policies. It relaxed security at the labs, particularly when it came to Chinese visitors and workers. It balked at prosecuting suspected Chinese spies. And it removed controls on dual-use exports to China...."

Cox Report 5/99 Freeper Favish http://www.house.gov/coxreport/chapfs/ch3.html "...In June 1998, the PRC agreed with the United States to cooperate and allow post-shipment verifications for all exports, including HPCs.[149] PRC conditions on the implementation of post-shipment verifications for HPCs, however, render the agreement useless.[150] Specifically: · The PRC considers requests from the U.S. Commerce Department to verify the actual end-use of a U.S. HPC to be non-binding · The PRC insists that any end-use verification, if it agrees to one, be conducted by one of its own ministries, not by U.S. representatives · The PRC takes the view that U.S. Embassy and Consulate commercial service personnel may not attend an end-use verification, unless they are invited by the PRC · The PRC argues scheduling of any end-use verification - or indeed, whether to permit it at all - is at the PRC's discretion · The PRC will not permit any end-use verification of a U.S. HPC at any time after the first six months of the computer's arrival in the PRC The Select Committee has reviewed the terms of the U.S.-PRC agreement and found them wholly inadequate. The Clinton administration has, however, advised the Select Committee that the PRC would object to making the terms of the agreement public. As a result, the Clinton administration has determined that no further description of the agreement may be included in this report....."

MSNBC 6/9/99 "....The Energy Department has not been following its own rules for licensing visits to its nuclear weapons labs by foreign nationals who come in contact with sensitive information, the department's inspector general says. Inspector General Gerald H. Freidman said sponsors of the visits--who are responsible for requesting the licenses--often fail to do so because of conflicting regulations. The report, obtained by The Associated Press on Tuesday, was prepared for a Senate Governmental Affairs Committee hearing on Thursday. The Energy Department, in a response attached to the inspector general's findings, said it is updating its export guidelines, which "will, among other things, clarify requirements" for the laboratory visits....."

'Meet the Press' (Albright Segment) NBC 6/13/99 "....MR. RUSSERT: Sandy Berger, the president's national security adviser, was briefed in 1996. The president was briefed in '97. You were not told until '99? SEC'Y ALBRIGHT: I was not briefed, and I have made very clear that that was unacceptable. MR. RUSSERT: Over the last two or three years you've probably had numerous discussions with the Chinese. Wouldn't it have been helpful if you knew that they had been spying on us? SEC'Y ALBRIGHT: I think that in all of the discussions that I've had with the Chinese, I have always done them with my eyes wide open as to the fact that we are dealing with a very large country that has strategic interests of its own and our national interests prevailed. And I believe that nothing that has been done in any way, in terms of policy, would have been different had I known more, because I have always been very open-eyed, clear-eyed. No rose-colored glasses for me. MR. RUSSERT: Why do you think they were trying to keep you out of the loop or not share this information? SEC'Y ALBRIGHT: I think it was accidental. I really do. MR. RUSSERT: And what did you say to them? SEC'Y ALBRIGHT: I don't think that I should say that on television. MR. RUSSERT: Did you express your displeasure to the president? SEC'Y ALBRIGHT: I expressed my displeasure widely....."

6/15/99 NY Times David Johnston "...Three months ago, a research mathematician was dismissed from his job at the Los Alamos nuclear weapons laboratory for security violations. Monday Federal authorities say it is most unlikely that the mathematician, who is at the center of the uproar over the suspected theft of nuclear secrets by China, will ever face criminal charges of espionage. Moreover, the officials are unsure whether the scientist, Wen Ho Lee, will be accused of any wrongdoing, even though investigators found in March that he had downloaded thousands of secret codes used in the design of the most sophisticated American nuclear weapons. The uncertain status of the case has infuriated some Government officials and lawmakers, primarily Republicans, who say Lee may be responsible for the most damaging espionage of the post-cold-war era. That conclusion was reinforced last month, when a Congressional panel found that China had used nuclear secrets stolen from American labs to develop advanced miniature warheads and a mobile ballistic missile....The still classified F.B.I. application cited questions about Lee dating from the early 80's, when he contacted a scientist who had been ousted from a weapons lab in California after an inquiry into the theft of secrets about the neutron bomb...... "

Capitol Hill Blue 6/15/99 "...`For the past two decades, the Department of Energy has embodied science at its best and security of secrets at its worst,'' the President's Foreign Intelligence Advisory Board concluded in a 57-page report. President Clinton ordered the investigation of security threats at the Energy Department's weapons labs three months ago.... The advisory board accused the Energy Department and the labs of being ``Pollyannaish'' on security threats. The predominant attitude toward security among many Energy Department and lab managers ``ranged from half-hearted, grudging accommodation ... to smug disregard,'' the report said. China's intelligence-gathering methods had proved ``very effective against unwitting and ill-prepared'' Energy Department personnel, it concluded....Listening devices were found in weapons-related facilities as recently as the early 1990s and an illegal telephone wiretap was discovered after 1995, investigators found. One subject under counterintelligence surveillance had been granted a security clearance giving him access to nuclear weapons data simply to avoid the delay of normal processing of a lab visit, the report said. Further security breaches included a 24-month lapse in ordering the security labels ``Secret'' and ``Top Secret'' for mislabeled software, and a 35-month lapse in writing a work order to replace a lock at a weapons lab facility containing sensitive nuclear information..... "

6/14/99 AP H Josef Hebert "...Describing a ``culture of arrogance'' at the Energy Department and nuclear labs, an influential intelligence advisory panel told President Clinton Monday that his proposed security improvements fall short of what is needed to protect against nuclear thefts.....In a scathing 57-page report, the panel, headed by former Republican Sen. Warren Rudman of New Hampshire, concluded that the Energy Department is ``incapable of reforming itself.'' It said only a dramatic overhaul of the government's nuclear programs would ensure the needed security and counterintelligence improvements. ``Organizational disarray, managerial neglect, and a culture of arrogance -- both at DOE headquarters and the labs themselves -- conspired to create an espionage scandal waiting to happen,'' the report declared...... Rudman told Clinton that the president's directive in February 1998 to beef up security at the research labs was a ``positive step'' and more than what had been done by previous presidents. ``The bad news is that people to this day are trying to keep (the directive) from being implemented,'' Rudman told the president, according to the senior official, who spoke on condition of not being identified further. The report said its ``most troubling'' finding was ``evidence that the lab bureaucracies, after months at the epicenter of an espionage scandal with serious implications for U.S. foreign policy, are still resisting reforms.'' ..."

6/14/99 AP H Josef Hebert "...It [Rudman report] concluded that over a succession of administrations, dating back 20 years or more, an entrenched bureaucracy both at the department and in the research labs demonstrated ``an arrogant disregard for authority'' and took security and espionage concerns lightly. There was ``a staggering pattern of denial'' when it came to security and the growing threat of espionage from China and other countries, the report said.....

The Financial Times 6/14/99 James Kynge "...China yesterday poured scorn on US allegations that Beijing stole nuclear weapons secrets - saying there was nothing to steal because American warhead technology was readily available over the internet. Zhao Qizheng, spokesman for China's cabinet, demonstrated his point by logging on to a website registered to the Federation of American Scientists. The site, Federation of American Scientists, appeared to have information on warheads such as the W-87 and W-88 mentioned in the Cox report, the US congressional document that alleges Beijing stole secrets, including the designs of seven types of nuclear warhead, during a 20-year spying campaign..... One indication of the mounting mistrust was contained in China Review, a respected official Chinese journal. Its June edition said the US and Nato were hatching ever greater conspiracies and China must be ready to "fight a world war"...."

6/14/99 AP "...Democratic Party fund-raiser John Huang was arraigned Monday on a conspiracy charge as part of a plea bargain that was reached after he helped the government's campaign finance investigation. He is expected to plead guilty in federal court next Monday. Prosecutors are seeking a sentence of a year's probation, 500 hours of community service, a $10,000 fine and a requirement that he continue cooperating with the government. Huang's plea agreement specifies that he has already participated in 21 interviews with prosecutors and agents....."

Washington ComPost 6/14/99 Walter Pincus "...When retired Adm. James D. Watkins took over the Energy Department in early 1989, then-President George Bush told him that security and safeguards at the department's nuclear weapons laboratories were "a complete mess." In response, Watkins instituted a study of security and beefed up some personnel rules and physical barriers. But the former chief of naval operations, who worked on nuclear matters throughout his Navy career, made his first priority restructuring responsibility within the department, particularly environmental, safety and health standards. Today, a decade after Watkins started his reforms, new examples of lax personnel security and allegations of Chinese espionage have brought on another reform of security measures, imposed by the Clinton administration and now being enacted into law by the Republican-controlled Congress..... The Energy Department has been bifurcated since its creation during the Carter administration. More than half its functions -- and its $14 billion budget -- relate to civilian energy issues, such as coal, gas and electricity, and those programs often are looked upon as public works projects. The nuclear weapons complex, on the other hand, is central to U.S. national security and charged with maintaining the country's lead in development and production of nuclear weapons. With the end of the Cold War, the focus has been less on building new weapons and more on maintaining the existing stockpile. ..... Watkins said during a recent interview that when he arrived at the Energy Department he found blurred lines of authority. In addition, none of the three political appointees President Ronald Reagan chose as secretary -- an oral surgeon, a soft drink executive and a White House personnel director -- had any serious military background...... Watkins said the Reagan transition team told him there were no security problems, but he later learned that there had been an FBI espionage investigation into alleged Chinese spying at the Lawrence Livermore National Laboratory and that the General Accounting Office and Congress had completed sharply critical studies of the nuclear complex's physical security. It was right at the time of the transition from Reagan to Bush that the Chinese allegedly obtained classified data about the W-88, the most advanced U.S. nuclear warhead, according to the recent report of the House select committee chaired by Rep. Christopher Cox (R-Calif.).... But last week, Domenici disclosed at a Senate hearing that it was during Watkins's time as secretary that a security file on a Los Alamos scientist suspected of being "turned" as a Chinese agent was misplaced at the department's headquarters. "Nobody bothered to ask its whereabouts or check it," Domenici said. "It just had disappeared." .....It was also during Watkins's tenure that the FBI began its investigation of another Los Alamos and Livermore scientist for espionage. But Watkins said he never heard of the case of Peter Lee until 1997, when Lee pleaded guilty to mishandling classified information. Before he left office, Watkins briefed his Clinton administration replacement, former utilities executive Hazel O'Leary, on the major issues she would face. Watkins said he was disappointed that, like the Reagan administration secretaries, she was more interested in the energy side of the department than in weapons building -- more interested in commerce and openness than in security...."

Hong Kong Standard 6/13/99 Phillip Cunningham "...The Nato bombing of the Chinese embassy in Belgrade may not have been the result of carefully coordinated strategy--but it was no accident either. That is the gist of a sneak preview of the still-classified investigative report that the United States will present to the Chinese Government by way of apology. Ezra Vogel, director of the Asia Centre at Harvard University and a former senior intelligence official of the Clinton administration is in Hong Kong awaiting arrangements to visit top officials in Beijing in the wake of anti-US animosity stirred by the attack on the Chinese Embassy in Belgrade on 7 May. Dr Vogel gave a dinner talk at the University of Science and Technology on 7 June which contradicted the Western media story that the bombing was an accident due to outdated maps. Instead Dr Vogel's views were closer to those expressed by the Chinese government and independent investigators at the Chinese-language weekly Yazhou Zhoukan (Asia Weekly), which published a controversial report on the bombing entitled "Exposing the lies of the old map story"..."

Hong Kong Standard 6/13/99 Phillip Cunningham "...Dr Vogel's views: --There was an official cover-up and the map story was part of it. --There was a bureaucratic battle over where to assign blame, with the White House and the State Department prevailing over the Central Intelligence Agency and Defense Intelligence Agency to obtain data for the yet-unreleased official report. --The embassy bombing was a major setback to Sino-US relations in the magnitude of theTiananmen crackdown and the effects will be felt for a long time to come. --Blame will be assigned to lower-ranking people. --The security side of the embassy was precisely hit, and the Chinese embassy, like all embassies, has a lot of electronic equipment. The implication is that strong electronic signals made the embassy a hot spot for Nato bombers. --It was probably the military who did it, perhaps responding to vigorous electronic activity in the building. --Chinese popular anger, while enhanced by government manipulation of the media, was real. --President Clinton's first apology was misunderstood for cultural reasons. The president, who first spoke about the bombing during a tour of tornado-devastated Oklahoma, was perceived as insincere in part because of the casual clothes he was wearing. The possibility that the bombing was no accident is shocking and clearly has serious implications for Sino-US relations...."

Hong Kong Standard 6/13/99 Phillip Cunningham "...Chinese reports were quick to point out that the embassy was hit by three bombs from three different angles. Mr Shimatsu spoke to the National Imaging and Mapping Agency and was told the Chinese embassy was correctly marked on the map. Wang Jianmin, a staff writer for Yazhou Zhoukan, wrote a related story about two bomb attacks on the embassy. A Belgrade resident, identified only as Zoran, said the embassy was hit twice--the first attack with two missiles, the second with one. The second attack came after news of the embassy being hit was broadcast on Yugoslav media...."

The Center For Security Policy 6/15/99 "...Today, the President's Foreign Intelligence Advisory Board (PFIAB) released the findings of its 90-day study of security issues at the Department of Energy. Although the report itself was unavailable at this writing, press reports indicate that the PFIAB analysis not only paints a grim picture of past breaches of the most basic procedures for safeguarding classified nuclear weapons data. It also reveals that the gross disregard for elementary physical, information and personnel security -- encouraged by Mr. Clinton's first Energy Secretary, Hazel O'Leary, and epitomized in her infamous December 1993 declaration that, "Someone else has the job of looking more carefully at the national security interest" -- continues to this day under her successor, Bill Richardson...."

The Center For Security Policy 6/15/99 "...Other highlights of then-Secretary O'Leary's lengthy -- and frequently incoherent -- press conference on Tuesday, 7 December 1993 ....In particular, Mrs. O'Leary clearly took pleasure in disclosing theretofore secret information concerning: the total quantity and precise locations around the country of much of the Nation's stockpile of plutonium -- an invitation to domestic or foreign acts of terrorism; the fact that there were then "three miles" of (ostensibly) unduly classified documents, which Sec. O'Leary promised aggressively to declassify. (She did so, releasing, among other sensitive information, nuclear weapons-relevant "Restricted Data" and "Formerly Restricted Data" despite a specific statutory prohibition on doing so contained in the Atomic Energy Act); the number of secret underground nuclear tests that the United States had conducted (the government had previously chosen not to announce some 200 tests whose low yields could not be detected by others) -- a potential intelligence windfall for foreign powers; and the explosive allegation that the Department of Energy's bureaucratic predecessors had conducted radiological experiments on human beings without obtaining the participants' informed consent....."

The Center For Security Policy 6/15/99 "...the PFIAB, led by former Republican Senator Warren Rudman. According to press accounts, the PFIAB study -- entitled Science at its Best, Security at its Worst reaches, among others, the following, damning conclusions: "The Department of Energy, when faced with a profound public responsibility, has failed." "Our bottom line: DOE represents the best of America's scientific talent and achievement, but it has also been responsible for the worse security record on secrecy that the members of this panel have ever encountered." ..."

The Center For Security Policy 6/15/99 "..."The report [issued in December 1990 by then-Secretary of Energy James Watkins] skewered DOE for unacceptable 'direction, coordination, conduct and oversight' of safeguards and security...Two years later, the new [Clinton] Administration rolled in, redefined priorities, and the initiatives all but evaporated." ..."

The Center For Security Policy 6/15/99 "...According to the Washington Post, "Rudman, [a] White House official said, told Clinton that a presidential decision directive signed in 1998 was 'the first really serious effort' to tighten security at the department, but that in the wake of espionage charges it was 'late in coming.' Rudman surprised the president by saying that 'people [at the Energy Department] were still trying to keep it from being implemented,' the official said." "[Richardson] has overstated his case when he asserts, as he did several weeks ago, that 'Americans can be reassured: Our nuclear secrets are, today, safe and secure.'" "Organizational disarray, managerial neglect and a culture of arrogance -- both at DOE headquarters and the labs themselves -- conspired to create an espionage scandal waiting to happen."..."

The Center For Security Policy 6/15/99 "...Arguably, most importantly, the PFIAB found that: "The Department of Energy is a dysfunctional bureaucracy that has proven it is incapable of reforming itself." (Emphasis added.) Rep. Cox evinced a similar judgment when he declared this morning on National Public Radio's "Morning Edition" program that: "There may well have been an effort to show that the [espionage] case was closed, the problem was solved and we could put it all behind us and load all the burden on to the shoulders of one individual. But the problems that have been identified go well beyond one individual." ..."

New York Times 6/17/99 William Safire "…Computers at our nuclear laboratories are again being ordered to "stand down." Our most secret work on our most powerful weaponry is coming to a screeching two-day halt. That's because of a line in a report issued this week by "Piffiab," the President's Foreign Intelligence Advisory Board: "A nefarious employee can still download secret weapons information to a tape, put it in his or her pocket, and walk out the door." This despite Energy Secretary Bill Richardson's previous public assurances that the barn door had been locked, now that China has our warhead secrets. When Congress's Cox committee on Chinagate submitted its classified findings six months ago, President Clinton assigned Piffiab's chairman, former Senator Warren Rudman, a Republican, to do the usual White House whitewash. However, to my surprise, Rudman delivered the most damning excoriation any White House has ever directed at its own Administration. "Saturated with cynicism, an arrogant disregard for authority, and a staggering pattern of denial . . . organizational disarray, managerial neglect . . . pervasive inefficiency . . . an abominable record of security with deeply troubling threats to American national security." Strong letter follows.,,,,, "

CBS Online 6/16/1999 "….After a series of reports blasted the Energy Department for lax security at U.S. nuclear weapons labs, Energy Secretary Bill Richardson will announce the nation's first "security czar," who will be charged with insuring the security of those labs, CBS News has learned. Richardson is expected to name General Eugene Habiger, a just-retired four-star general who was the head of STRATCOM, and oversaw Air Force and Navy nuclear forces, CBS News Correspondent Sharyl Attkisson reports. The official announcement is expected at a 2:30 p.m. ET press conference Wednesday. The nation's nuclear weapons labs aren't even close to solving their security problems, according to an independent panel headed by former Republican Sen. Warren Rudman. "I don't think this is just a security problem, this panel found an accountability problem," Rudman said….. the following glaring security problems: * It took four years to fix a broken doorknob that was stuck open, allowing access to sensitive areas. * One employee was dead for a year before officials realized classified documents were still assigned to him. * Another employee confessed to installing an illegal wiretap but was not prosecuted. Just last month, Richardson declared the espionage crisis at U.S. nuclear weapons labs was over. "I can assure the American people their nuclear secrets are safe," Richardson said. Responded Rudman: "I just find that statement incomprehensible and I'm just not sure why he's saying it!" …"

Unclassified Statement for the Record by Special Assistant to the DCI for Nonproliferation John A. Lauder on the Worldwide WMD Threat to the Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction As Prepared for Delivery on 29 April 1999 … Numbers alone, however, do not adequately reflect the true nature of the growing CBW threat. The greatest change is that individual CBW programs are becoming more dangerous in a number of ways.

First: As deadly as they now are, CBW agents could become even more sophisticated. Rapid advances in biotechnology present the prospect of a wholly new array of toxins or live agents that will require new detection methods and preventative measures, including vaccines and therapies. Russian whistleblowers have warned publicly of a new generation of CW agents, sometimes called "Novichok" agents, that might also necessitate new detection and treatment approaches. To compound the problem, Third World proliferants probably are already seeking such technology and could develop or acquire advanced agents in the near future. In addition, researchers are exploring different ways to use BW, including mixtures of slow- and fast-acting agents, and "cocktails" with chemical agents. Gains in genetic engineering are making it increasingly difficult for us to recognize all the agents threatening us. Also, BW attacks need not be directed only at humans. Plant and animal pathogens may be used against agricultural targets, creating potential economic devastation…."

Unclassified Statement for the Record by Special Assistant to the DCI for Nonproliferation John A. Lauder on the Worldwide WMD Threat to the Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction As Prepared for Delivery on 29 April 1999 … CBW programs are becoming more self-sufficient, challenging our detection and deterrence efforts, and limiting our interdiction opportunities. Iran is a case-in-point. Tehran--driven in part by stringent international export controls--has set about acquiring the ability to produce domestically the raw materials and equipment needed to support indigenous chemical and biological agent production. Countries are taking advantage of denial and deception techniques, concealing and protecting CBW programs. Concealment is simpler with BW because of its overlap with legitimate research and commercial biotechnology. Even so, a CW capability can fairly easily be embedded into a commercial pesticide plant or other parts of an industrial chemical infrastructure. Even supposedly "legitimate" facilities can readily conduct clandestine CBW research and can convert rapidly to agent production, providing a mobilization or "breakout" capability. As a result, large stockpiles of CBW munitions simply may not be required in today's CBW arena…. Advances are occurring in dissemination techniques, delivery options, and strategies for CBW use. We are concerned that CBW-capable countries are acquiring advanced technologies to design, test, and produce highly effective CBW munitions and sophisticated delivery systems, such as cruise missiles and short-range ballistic missiles.

Two other phenomena complicate the problem. The first is brain drain; as mentioned previously, scientists with transferable know-how continue to leave the former Soviet Union, some potentially for destinations of proliferation concern. Second, the struggle to control dual-use technologies only gets harder. A few individuals are ready to take advantage of this and are ready to transform opportunities for human betterment into threats of human destruction…."

Unclassified Statement for the Record by Special Assistant to the DCI for Nonproliferation John A. Lauder on the Worldwide WMD Threat to the Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction As Prepared for Delivery on 29 April 1999 … So what is the Intelligence Community doing to address the global WMD proliferation problem and to use our available resources in the best way possible? …. At the same time, nearly all of the analysts in CIA's Directorate of Intelligence who were covering biological and chemical weapons, all of the proliferation specialists dealing with missiles and nuclear technology, and all of the analysts investigating the proliferation supplier networks were brought into NPC. A major reason for increasing the size of NPC was to provide a critical mass of experts to grow and nurture the next generation of WMD and proliferation analysts and collectors. Speaking of the "next generation," a top strategic priority for NPC, and all of us in the nonproliferation intelligence community, is analysis--especially the steps needed to promote analytical depth and expertise. We have a strong front line, but we need a deeper bench. To that end, we are adding significant numbers of analysts and taking innovative measures to help these analysts cope with the fire hose of information that is out there. Our future effectiveness will rest heavily on taking new directions in information technology and information management….. "

The Center For Security Policy 6/18/99 "…Wednesday's edition of the Los Angeles Times provided fresh evidence that Secretary of Energy Bill Richardson is not up to his job, any more than his department is up to that of maintaining the U.S. nuclear arsenal and safeguarding its secrets. Despite a critical report from a bipartisan House Select Committee, chaired by Rep. Chris Cox (R-CA)(1), and an even-more-scathing study by the President's Foreign Intelligence Advisory Board, chaired by former Senator Warren Rudman (R-NH)(2), the Times reported that Secretary of Energy Bill Richardson said, "I want to see evidence of [ongoing] nuclear security problems." Secretary Richardson's comments were so outlandish that Sen. Rudman undiplomatically declared that the Secretary's views "boggle my mind." The fact is that there has not only been an historical, wholesale penetration of the American nuclear establishment by Communist China, but both the Cox and Rudman reports make clear that the problem continues to this day. Indeed, both panels were concerned that the Department of Energy is so dysfunctional that it is incapable of taking the most elementary steps to protect U.S. secrets and has been slow -- if not utterly unwilling -- to launch the sort of serious and sustained counterintelligence effort needed to weed out and apprehend spies who may still be working in the Nation's nuclear labs…. Sen. Rudman is correct in contending, according to the Times, that Secretary Richardson "'has no idea' if a spy remains in the Nation's vast nuclear weapons complex." Rudman added that, Richardson "'still doesn't have a handle' on the thousands of foreign visitors to the nuclear weapon labs each year."

Reuters 6/18/99 Tabassum Zakaria "…Foreign scientists have played a key role at Los Alamos National Laboratory since its inception as the creator of the atomic bomb, but now find themselves under a microscope as potential threats after allegations of Chinese espionage. Many of them are watching anxiously developments in Washington that could have impact on their lives at the lab….. ``A lot of our very best people are from sensitive countries,'' said Hans Ruppel, associate lab director. Of the 7,000 lab employees about half are scientists and engineers. The latest figures for 1999 show 182 foreign employees at the lab are from countries designated as sensitive by the Energy Department -- China, India, Iran, Israel, Russia, and Taiwan. An additional 274 foreign employees are from nonsensitive countries…… At Los Alamos, as of April 1, there were 97 employees who were Chinese nationals….. Lab scientists said attempts to limit contact with foreign counterparts could hurt exchanges that are crucial to the nonproliferation of weapons of mass destruction. …."

Defense Information And Electronics Report 6/18/99 Richard Hill "…Rep. Curt Weldon (R-PA) this week accused President Clinton of giving short shrift to the burgeoning information technology phenomenon, saying the president's inattention and inability to engage the public on the issue will eventually harm the United States' ability to defend itself against an enemy clever enough to attack the country at its computer-based core. …. "In each of the past five defense budgets, we in the Congress plussed-up funding in the area of cyber terrorism by significant amounts of money well above what the president requested," he said. "We were the ones who were pressing the money and moving the services into information technology dominance." He added, "I support the efforts of the administration. I don't think they're enough, and I do fault the president of the United States for not raising this issue to a level of national security concern. This whole issue needs to be taken to the American people in a way that everyone understands." ….One way to do that, he said, was through what's called an electromagnetic pulse attack, whereby an enemy with a nuclear payload detonates such a bomb in the atmosphere over the United States. The effect of the explosion would be to paralyze the nation's power grids, possibly for up to a year. People and other living things would be otherwise unaffected, however. A Pentagon official recently downplayed the threat of an EMP attack, noting the probability of such an electronic assault is low (Defense Information and Electronics Report, June 4, p1)….."

AP Newswire 6/19/99 "…Using the weekly GOP radio address, Sen. Jon Kyl, R-Ariz., accused the Clinton administration of taking ``half measures'' in dealing with security at nuclear weapons laboratories. Kyl is one of three GOP senators who have proposed putting nuclear weapons programs under a largely autonomous agency within the Energy Department _ an idea also urged this week by a panel of intelligence experts advising the president…"

"INTRODUCTORY NOTE FROM THE REVIEW PANEL The Intelligence Community's Damage Assessment on the Implications of China's Acquisition of US Nuclear Weapons Information on the Development of Future Chinese Weapons …This damage assessment was reviewed by a panel of independent, national security and weapons experts--Admiral David Jeremiah, General Brent Scowcroft, Dr. John Foster, Mr. Richard Kerr, Dr. Roland Herbst, and Mr. Howard Schue--prior to its publication…The panel would add the following observations: ….* The panel feels strongly that there is too little depth across the Intelligence Community's analytic elements and they are too frequently occupied with whatever current crisis takes front stage. The necessity to pull Intelligence Community analysts and linguists off other activities to assess the compromises to US nuclear weapons programs and their value to the Chinese further reinforces the panel's view that the depth of Intelligence Community technical and language expertise has eroded. * A separate net assessment should be made of formal and informal US contacts with the Chinese (and Russian) nuclear weapons specialists. The value of these contacts to the US, including to address issues of concern-safety, command and control, and proliferation-should not be lost in our concern about protecting secrets. * The panel recognizes that countries have gained access to classified US information on a variety of subjects for decades, through espionage, leaks, or other venues. While such losses were and continue to be unacceptable, our research and development efforts generally kept us technologically ahead of those who sought to emulate weapons systems using our information. However, decreases in research efforts have diminished the protective edge we could have over those using our information, making such losses much more significant in today's world…."

Unclassified Statement for the Record by Special Assistant to the DCI for Nonproliferation John A. Lauder on the Worldwide WMD Threat to the Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction As Prepared for Delivery on 29 April 1999 …DCI George Tenet has emphasized in his appearances before Congress that no issue better illustrates the new challenges, complexities, and uncertainties that we in the Intelligence Community face than the proliferation of WMD and their delivery means. Over the past year, we have witnessed the nuclear tests in South Asia, continued concerns about Iraq's WMD programs, broader availability of technologies relevant to biological and chemical warfare, and accelerated missile development in Iran, North Korea, and--most recently--in Pakistan and India. Particularly worrisome to the Intelligence Community is the security of Russian WMD materials, increased cooperation among rogue states, more effective efforts by proliferants to conceal illicit activities, and growing interest by terrorists in acquiring WMD capabilities. US intelligence is increasing its emphasis and resources on many of these issues, but there is a continued and growing risk of surprise. We appropriately focus much of our intelligence collection and analysis on some ten states, but even concerning these states, there are important gaps in our knowledge. Moreover, we have identified well over 50 states that are of proliferation concern as suppliers, conduits, or potential proliferants. Our analytical and collection coverage against most of these states is stretched, and many of the trends seen, such as the possibility of shortcuts to acquiring fissile material and increased denial and deception activities, make it harder to track some key developments, even in the states of greatest intelligence focus…."

Rueters 6/20/99 "...University of California President Richard Atkinson has ordered a review of newly tightened security measures at nuclear weapons labs managed by the university, the Los Angeles Times reported on Sunday. The order comes amid mounting pressure in the federal government over allegations of Chinese espionage at the Los Alamos National Laboratory, which is managed by the university under a contract with the U.S. Department of Energy..... The university also manages the Lawrence Livermore National Laboratory east of San Francisco and the Lawrence Berkeley National Laboratory, which does some unclassified research. Although the government sets security policy at the labs, university officials help enforce the rules..... The U.S. House of Representatives and President Clinton's own Foreign Intelligence Advisory Board have suggested fining the university -- or other lab managers -- for future security violations, the Times said. The U.S. General Accounting Office also is advocating that the energy department end the university's 50-year-old hold on running the labs when its contract expires in 2002...."

Washington Post 6/20/99 Walter Pincus "...In the aftermath of allegations of Chinese espionage, the Department of Energy and its congressional critics are moving toward a compromise: creating a new agency within the department to oversee the production of America's nuclear weapons. The proposed reorganization is aimed not only at reducing the vulnerability to spying but also at clarifying lines of authority and making more efficient the $6 billion-a-year complex of weapons laboratories, reactors and assembly plants that stretch from coast to coast, employ more than 30,000 people and are vital to the nation's security. ...Last week, however, Richardson acknowledged that his aides were "trying to merge our differences" with Cox, Rudman and other critics. "I don't think we are that far apart," Richardson said in an interview Friday. "We all want accountability, clear lines of authority, centralization and security." The emerging compromise may be outlined on Tuesday when Rudman is to testify before an unprecedented joint meeting of the Senate committees on commerce, armed services and energy...."

FoxNews 6/20/99 Carl Cameron "...Senior FBI and CIA administrators tell Fox News that they are planning a shake-up in counterintelligence procedures in the wake of the China espionage scandal.... Last year, FBI Director Louis Freeh and CIA Director George Tenet testified before Congress that various reforms were being considered. Since then, however, several reports on the China espionage scandal have been released. The Congressional Cox Report, the White House's Rudman Report, the CIA's declassified publication on the matter, and the Department of Energy Inspector General have all been highly critical of the relevant performance of the CIA, the FBI, the Justice Department, the Department of Energy, and the Clinton administration. The CIA and FBI reforms may be made public within the next week to ten days. There are several closed hearings of the Senate Intelligence Committee planned. The FBI has already announced one major change: full-time counterintelligence squads will be assigned to the Energy Department weapons laboratories....Lawmakers say both Freeh and Tenet have said the latest counterintelligence breakdown with China has shown them that there is more work to be done, particularly in the area of economic espionage...."

The New York Post 6/21/99 Deborah Orin "...America needs a new agency to run the spy-haunted U.S. nuclear labs because their officials have an "astounding" attitude that led to outright defiance of President Clinton's order for lie-detector tests, a top watchdog says. The labs still haven't implemented polygraphs or toughened restrictions on foreign visitors, even though Clinton ordered those moves 16 months ago, ex-Sen. Warren Rudman (R-N.H.) told NBC's "Meet the Press." "When your commanding general tells you to walk to the right, you walk to the right," added Rudman, who examined the nuclear labs at Clinton's request, and last week blasted their security....."

Reuters 6/20/99 "...In the wake of allegations of spying by China, the federal government has begun polygraphing an estimated 5,000 nuclear weapons scientists and other sensitive employees at the Department of Energy, the Washington Post reported Monday. The newspaper said it was the first time the wholesale use of lie-detector tests had been extended beyond the CIA and the National Security Agency. Energy Secretary Bill Richardson told the Post in an interview that he had ordered the testing in response to allegations that Chinese spies stole nuclear secrets from national laboratories run by the Department. But strong opposition is emerging as the Department prepares to publish regulations this week spelling out how the polygraphs will be administered to thousands of contract workers and employees as a condition of employment in sensitive weapons programs, the newspaper reported...."

The Associated Press Jim Abrams 6/21/99 "...The Energy Department's bureaucracy has failed to take several steps key to reducing the threat of espionage and should cede control of the country's nuclear weapons program to a new agency, the head of a presidential panel on nuclear weapons security said Sunday. But Energy Secretary Bill Richardson, reiterating the administration's position, said he wouldn't give up authority over weapons production. ``What I don't want is a new agency that is autonomous, that does not report to me,'' he said on ``Fox News Sunday.'' ``The attitude of people within that department, in that bureaucracy, is astounding,'' said former Sen. Warren Rudman, R-N.H., who headed a panel of the president's Foreign Intelligence Advisory Board that last week issued a highly critical report of the DOE's counter-intelligence efforts. The report recommended creation of a largely independent agency within the department with responsibility for nuclear weapons programs, including the weapons labs, which have been the focus of investigations into alleged Chinese thefts of American nuclear weapons secrets. ``These weapons are not safe. These secrets are not safe. We have a terribly long way to go. It's been an accident waiting to happen for 20 years,'' Rudman said on NBC's ``Meet the Press.''...."

The Associated Press 6/21/99 "...China remains unconvinced that NATO didn't target its embassy in Belgrade, but President Clinton believes that Beijing ultimately will accept the bombing as ``a truly tragic accident.'' Clinton acknowledged that the embassy bombing, which killed three Chinese journalists, had created ``a difficult, painful period'' for U.S.-Chinese relations..... China's state-controlled media dismissed Pickering's presentation as ``deceitful talk'' and said the United States possesses too much sophisticated reconnaissance technology to have made such a mistake. .... In Washington, Defense Secretary William Cohen said Congress will soon get a report on what he called ``intelligence failures and institutional failures'' in the bombing. ``But I'm not sure how much more can be done to persuade the Chinese that this was in fact a serious mistake - a case of mistaken identity,'' Cohen said at a Pentagon press conference. ``It will take some time, perhaps, for them to accept that, but that is in fact the truth.'' ..."

Reuters, via Yahoo! News 6/21/99 "...The nation's three nuclear weapons laboratories shut down operations Monday for a two-day security review in the wake of allegations of Chinese espionage and lax oversight, lab officials said. The so-called standdown at Los Alamos and Sandia National Laboratories in New Mexico and Livermore Laboratory in California comes after heavy criticism in Congress of security standards at the labs. ``A standdown is a very unusual thing,'' John Bass, a spokesman for Los Alamos lab, said. During the two days, employees will review security procedures for the areas they work in. ``It's the responsibility on the part of every employee to pay attention to the security of what they do. If they are near classified material ... how do they handle it? How do they protect it?'' Bass said...."

CNN 6/22/99 Jonathan Carl "...Senators on Tuesday added momentum to the call to overhaul the Energy Department, which is reeling from charges that lax security at nuclear laboratories has encouraged international theft of atomic secrets. In a unique arrangement, 55 senators from four Senate committees heard testimony from Energy Secretary Bill Richardson and former Sen. Warren Rudman, chairman of a presidential advisory board that has called for a dramatic reshuffling of the Energy Department. Richardson bore the brunt of stinging criticism from congressional members Tuesday. Many of them cited last week's report from Rudman that proposed the department have a semi- autonomous agency to oversee lab security...... "It's time to fundamentally restructure the management of the nuclear weapons labs and establish a system that holds people accountable," Rudman testified. He said accounts from department employees were "startling," quoting one as saying it "is about as well-organized as the Titanic in the eleventh hour.".... "

New York Post 6/23/99 Brian Blomquist "...The drive to shake up and refashion the Energy Department, a favorite hunting ground for Chinese spies, picked up steam yesterday and now appears inevitable. Two influential Democrats, Sens. Joseph Lieberman of Connecticut and Bob Kerrey of Nebraska, endorsed a plan to strip the nuclear-weapons program from the rest of the Energy Department...."

Washington Post 6/24/99 Vernon Loeb and Steven Mufson "...A mid-level intelligence officer assigned to the CIA persistently questioned the targeting of a building that turned out to be the Chinese Embassy in Yugoslavia, but his concerns went unheeded inside the spy agency and at the U.S. military's European Command, a senior U.S. intelligence official said yesterday. ...The analyst's warnings are noted in a classified internal report by the CIA's inspector general, which has not been made public but has been given to some members of Congress. According to the senior intelligence official, the analyst had "some familiarity" with the Directorate of Supply and Procurement -- an arms purchasing agency -- and was not sure that his colleagues had correctly located it on a map. "He was concerned, raised some questions, and they didn't get resolved," the senior official said. Another intelligence officer said the analyst "raised his doubts with working level counterparts" at both the CIA and the European Command in Stuttgart, Germany, but the questions "were never raised to senior levels before the strike took place." ...... According to a high-ranking State Department official, an intelligence officer got the correct address of the Yugoslav arms procurement agency from the Internet but then used the numbering of buildings on parallel streets to mistakenly identify a spot on a map of Belgrade. He took that map to an expert in aerial photography who determined coordinates for the building. The bombs accurately hit those coordinates, which turned out to be the Chinese Embassy. A cross-check of various databases listing sensitive sites, such as schools, hospitals and embassies, failed to catch the error because the data had not been updated after the Chinese Embassy moved in 1996..... At CIA headquarters, meanwhile, analysts and case officers involved in erroneously targeting the Chinese Embassy expressed concern that their actions could be unfairly judged and their careers jeopardized if policymakers hunt for scapegoats. At least one veteran CIA case officer with a military background has retained a lawyer. "We are concerned because there is a great deal of political pressure to blame someone, to blame an individual," said attorney Roy W. Krieger, who declined to identify his client but said he was "involved in the chain of command in the accidental targeting of the Chinese Embassy."...."

Los Angeles Times 6/23/99 CHRISTOPHER LAYNE "....Although it was NATO's ostensible ally against Yugoslavia, it is hard to grasp why U.S. and NATO policymakers have concluded that the KLA forces are the "good guys." * First, the KLA is a nasty and thuggish lot. This is a coalition of the despicable: a radical right wing (descendants from the numerous ethnic Albanians who fought for the Nazis in World War II), a radical left wing (communist hard-liners), liberally mixed with Islamic fundamentalists and drug traffickers and other criminals. * Second, the KLA's ideology is inconsistent with America's postwar vision for the province, which, as President Clinton reiterated this week, calls for creation of a multiethnic democracy. The KLA is hostile toward democracy.... * Third, the KLA's long-term political ambitions are antithetical to those of the United States and NATO. Washington and the alliance seek a postwar Kosovo that enjoys substantial self-rule as an autonomous province within Serbia. The KLA, however, is committed to attaining independence for Kosovo and ultimately to uniting Kosovo, by force if necessary, with Albania and with the ethnic Albanian portion of Macedonia, which could trigger a wider Balkan conflict.... * Fourth, the KLA craftily orchestrated events in Kosovo in order to draw the U.S. and NATO into the conflict against Serbia. Early this year, the U.S. intelligence community warned the Clinton administration that the KLA would attempt to force NATO's intervention by staging provocations designed to elicit brutal Serb reprisals and thereby gain the West's sympathy and support. The KLA's strategy worked: The U.S. intervened in Kosovo's civil war, absolving the KLA insurgents and naively concluding that the Serbs alone were responsible...."

Insidechina 6/26/99 AFP "...China is using Cuba as a base for a sophisticated spying operation targeting the United States, the Nuevo Herald daily said here Thursday. China is using its collaboration with Cuba in the field of electronics and radio telecommunications as a smokescreen for the operation, the paper said, citing US intelligence sources and official US documents. The main Chinese bases for listening and tracking are located northeast of Santiago de Cuba and in Bejucal, in the province of Havana, according to the report...."

China Times 6/27/99 CAN "...US Rep. Duncan Hunter (R-CA) has introduced a House resolution prohibiting US assistance to Panama if a defense site or military installation built or formerly operated by the United States is provided by the Panamanian government to any foreign government-owned entity. A US congressional delegation that recently toured Central America in anticipation of the handover of the Panama Canal at the end of this year concluded in its report that mainland Chinese dominance of the Panama Canal zone represents a threat to US security. The US-Panama Security act of 1999, introduced by Hunter on June 16, was referred for consideration to the House Committees on International Relations, Banking and Financial Services, Armed Forces, and Intelligence. Hunter noted that a recent grant to Hutchison Whampoa, a Hong Kong firm with ties to the Beijing government, of management control of the Panamanian ports at either end of the Panama Canal has raised the specter of the expansion of mainland Chinese political influence in Panama, a situation aggravated by unanswered questions concerning the methods used by the Hong Kong firm to win its bid. The resolution requires the US president to submit to the Congress a report explaining how Hutchison Whampoa was selected to receive a grant for management control of the Panamanian ports at either end of the Panama Canal, and whether or not the US government had any knowledge of ties between the Hong Kong firm and the Beijing regime. The bill also requires the secretary of defense to report to the Congress on the extent to which such control by Hutchison Whampoa poses a threat to the security of the United States, and how the US strategic interests with respect to the Panama Canal will continue to be protected after its handover to Panama....."

New York Times 6/27/99 James Risen Jeff Gerth "...The White House was told about China's apparent theft of American nuclear weapons technology in July 1995, soon after it was detected by the Energy Department and the Central Intelligence Agency, several officials said. Until now, the Administration has left the impression that the White House first learned about the matter in April 1996, when Samuel R. Berger, then President Clinton's deputy national security adviser, was briefed on the case by Energy Department officials. But interviews with current and former officials show that warnings about possible Chinese nuclear espionage received high-level attention within the Clinton Administration early in the Government's investigation of the matter...."

I New York Times 6/27/99 James Risen Jeff Gerth "...Evidence that China may have stolen nuclear secrets first came to the attention of the White House during a meeting in July 1995, when the White House Chief of Staff, Leon Panetta, was informed of the problem by Energy Secretary Hazel O'Leary, Panetta and other officials said. She added that Energy Department officials had also been told that the C.I.A. had gathered intelligence about the possible theft, they said. Panetta then called the C.I.A. Director, John Deutch, to find out what the agency was doing about the case, Panetta said. Deutch, who had also just received a call about the same matter from Deputy Energy Secretary Charles Curtis, told Panetta he would investigate. Panetta then told Deutch to work with the National Security Council at the White House on the case. Upset that he had not heard about the case first from officials in his own agency, Deutch called Panetta back a day or two later and told him what the C.I.A. knew about the spy case, officials said. A brief reference to such meetings between Energy Department, C.I.A. and White House officials in the summer of 1995 is also included in a new report on the case issued by the President's Foreign Intelligence Advisory Board...."

New York Times 6/27/99 James Risen Jeff Gerth "...Deutch finally briefed the national security adviser, Anthony Lake, on the case in November 1995. Lake said he did not recall the briefing, but he and White House officials said there was a record of it. Before meeting with Lake, Deutch received a full briefing from the C.I.A. analysts, who convinced him that design information on the nuclear weapon -- known as the W-88 -- had been stolen by Beijing, officials said. President Clinton was not told of the evidence in 1995 by Panetta, Lake, or any of the other officials who had been briefed, according to the National Security Council spokesman, David C. Leavy. Berger also did not tell President Clinton about the case following his briefing in 1996...."

New York Times 6/27/99 James Risen Jeff Gerth "...Berger, now the national security adviser, has said that it was not until after he received a second, more specific briefing in July 1997 that he told Clinton about security problems at the nuclear weapons laboratories. Berger did take some action after his 1996 briefing, Leavy said, including directing that Congress be secretly informed. In that meeting, he also agreed with Energy Department officials on the need to strengthen security at the weapons laboratories. Working along two separate tracks initially unknown to each other, C.I.A. and Energy Department officials first began to unravel the case in the spring of 1995, when weapons designers from the Los Alamos laboratory told Energy Department intelligence officials that they were convinced China had stolen design information on the W-88, based on their analysis of a series of Chinese nuclear tests. At about the same time, American officials received a package filled with Chinese government documents, which arrived by DHL express service, officials say. Officials refused to say where the package was received or how they determined the identity of the sender...."

New York Times 6/27/99 James Risen Jeff Gerth "...C.I.A. officials analyzing the documents quickly focused on one that included what appeared to be classified design information about American nuclear weapons, including the W-88. Dated 1988, the document also included a hand drawing of a United States nuclear warhead re-entry vehicle. But initially, the C.I.A. did not tell the Energy Department -- or anyone else in the Government -- that it had obtained the W-88 document, officials say. A former senior C.I.A. official said that soon after the agency realized the significance of the W-88 document, Deutch ordered him not to disseminate it to other United States intelligence agencies. But other current United States officials familiar with the matter said that Deutch did not try to suppress the document. Instead, they said the document was not distributed immediately because it took time for the C.I.A. to translate and analyze it. Deutch refused to comment on the matter. Nevertheless, by August 1995 Energy Department's analysts had obtained a copy, even though it would not be officially distributed throughout American intelligence agencies until that December. By then, analysts had concluded that the document indeed included American nuclear secrets, officials say..."

New York Times 6/27/99 James Risen Jeff Gerth "...After the analysts reported to Deutch in November, a broader review, dominated by the Energy Department, reported similar conclusions in April 1996. Berger was then briefed that same month, and the F.B.I. opened its criminal investigation on May 30, 1996. But in late June or July 1996, the F.B.I. dropped its investigation, a senior United States official said. The C.I.A. had just re-issued the W-88 document with a warning that the agency now believed that the source of the document was a double agent. The C.I.A.'s new assessment, coming a year after it had first received the document, led the F.B.I. to "stand down," or suspend, its investigation, the senior American official said. The suspension of the investigation lasted for about six weeks in the summer of 1996, according to the official. It resumed after the Energy Department assured the F.B.I. that even if the source was a double agent, the document nonetheless contained accurate, classified data about the W-88 warhead, and so represented a security breach.

New York Times 6/27/99 James Risen Jeff Gerth "...The C.I.A. agreed that the information in the document was accurate, and also continued its own analysis. But while the F.B.I. re-started its investigation, it remained a low priority, F.B.I. officials now concede. Only one or two agents were assigned to the investigation in 1996, officials say. By 1997, when the Justice Department denied the F.B.I.'s request to seek court authorization to wiretap and electronically monitor Lee, a move that has since become the subject of congressional inquiry, the F.B.I. still had only three or four agents on the case...."

AP 6/25/99 H Josef Hebert "...Amid the uproar over Chinese espionage, scientists at the Los Alamos nuclear weapons laboratory are being told their loyalty is not in question, but still many of them will soon be subject to lie detector tests. So when Energy Secretary Bill Richardson came to the laboratory where a half century ago the atomic bomb was born, he was confronted with the question: Shouldn't he be tested too?..... It was not until the last question, when a woman stood and made clear the matter wasn't going to be dropped. She wanted to know if an employee of 25 years were asked to subject herself to a lie detector test under threat of being removed from her job and replied ``I might,'' would that be greeted with laughter? She repeated the question. ``I'm prepared to take it,'' Richardson finally answered, somewhat taken aback by the exchange......``Asian Americans feel their patriotism is being questioned ... and that their careers will suffer as a result,'' he said. In remarks to workers at both Los Alamos and Sandia, Richardson vowed to aggressively combat any discrimination against the Asian American scientists. While the issue confronting Asian American scientists -- about 3 percent of the Los Alamos work force -- prompted a number of questions, clearly the issue uppermost on many of the scientists minds was the call for polygraph tests.....

Yahoo Reuters 6/25/99 "...Three days before NATO bombed the Chinese embassy in Belgrade, an intelligence officer told CIA colleagues and a military officer in Europe that the alliance had picked the wrong target but his concerns never reached senior levels, U.S. officials said Thursday. They said the mid-level intelligence analyst noticed imagery of the building proposed for a NATO strike did not appear to show the intended target, the Yugoslav Federal Directorate of Supply and Procurement (FDSP)..... ``He was not saying 'you are about to bomb the Chinese embassy', all he said was 'I've looked at this and I have some questions about whether you're aiming at the right target','' Pentagon spokesman Ken Bacon said..... ``On May 4, this mid-level officer called a mid-level officer in Europe and conveyed his concerns, and at the same time he attempted to arrange a meeting within the CIA to clarify his concerns,'' Bacon said. He failed to arrange the meeting at the CIA, he said...... One of the officials, who spoke on condition of anonymity, said the analyst could not notify the right people of his fears ''in a timely enough fashion''. He contacted a military officer at the combined air operations command in Italy, the headquarters for NATO air strikes, but with no sense of urgency because he did not know the strike was going to occur soon, officials said...... ``He tried again to reach folks, he couldn't reach them. He did talk to some people, and there's confusion about exactly what he said or what people heard,'' the official said. ``At that point they told him that the bombers were already in the air,'' the official said. ``It was a missed opportunity to prevent it from happening.'' ....."

FOXNEWS 6/25/99 Carl Cameron "...Tonight FOX NEWS has learned the FBI plans to propose a new division solely for rooting out spies, part of an agency wide overhaul of spy catching operations. FBI sources say the breadth of the shakeup is "huge." .....The CIA, FBI and Pentagon have never undertaken concurrent restructuring efforts, it's seen as a clear sign of how seriously counter intelligence broke down in the China spying case. Sources say the pentagon adn CIA plan to revamp numerous procedures and retool entire departments. As FOX NEWS has already reported the FBI has already sent teams of counter intelligence experts to the labs for the foreseeable future...."

Whitehouse.gov PFIAB 6/23/99 Rudman Freeper notes: This is an amazing read and I am posting what was the most important of Page 6 here. "...However, the brilliant scientific breakthroughs at the nuclear weapons laboratories came with a very troubling record of security administration. For example, classified documents detailing the designs of the most advanced nuclear weapons were found on library shelves accessible to the public at the Los Alamos laboratory. Employees and researchers were receiving little, if any, training or instruction regarding espionage threats. Multiple chains of command and standards of performance negated accountability, resulting in pervasive inefficiency, confusion, and mistrust. Competition among laboratories for contracts, and among researchers for talent, resources, and support distracted management from security issues. Fiscal management was bedeviled by sloppy accounting. Inexact tracking of the quantities and flows of nuclear materials was a persistent worry. Geographic decentraliza-tion fractured policy implementation and changes in leadership regularly depleted the small reservoirs of institutional memory. Permeating all of these issues was a prevailing cultural attitude among some in the DOE scientific community that regarded the protection of nuclear know-how with either fatalism or naiveté. Twenty years later, every one of these problems still existed. Most still exist today...."

Whitehouse.gov PFIAB 6/23/99 Rudman "...In response to these problems, the Department has been the subject of a nearly unbroken his-tory of dire warnings and attempted but aborted reforms. A cursory review of the open-source literature on the DOE record of management presents an abysmal picture. Second only to its world-class intellectual feats has been its ability to fend off systemic change. Over the last dozen years, DOE has averaged some kind of major departmental shake-up every two to three years. No President, Energy Secretary, or Congress has been able to stem the recurrence of fundamental problems. All have been thwarted time after time by the intransigence of this institution. The Special Investigative Panel found a large organization saturated with cynicism, an arrogant disregard for authority, and a staggering pattern of denial. For instance, even after President Clinton issued Presidential Decision Directive 61 ordering that the Department make fundamental changes in security procedures, compliance by Department bureaucrats was grudging and belated. Time after time over the past few decades, officials at DOE headquarters and the weapons labs themselves have been presented with overwhelming evidence that their lackadaisical oversight could lead to an increase in the nuclear threat against the United States...."

Whitehouse.gov PFIAB 6/23/99 Rudman "...Throughout its history, the Department has been the subject of scores of critical reports from the General Accounting Office (GAO), the intelligence community, independent commis-sions, private management consultants, its Inspector General, and its own security experts. It has repeatedly attempted reforms. Yet the Department's ingrained behavior and values have caused it to continue to falter and fail. The panel found a department saturated with cynicism, an arrogant disregard for authority, and a staggering pattern of denial...."

AP 6/29/99 "... The Pentagon said today it is investigating an attempted computer security breach last week at a defense agency responsible for reviewing sensitive technology exports. An unidentified employee of the Defense Threat Reduction Agency is under investigation for allegedly seeking unauthorized access to the computer system of a coworker, agency spokesman Clem Gaines said. Gaines said the employee under investigation by the Air Force Office of Special Investigations had requested access to the government computer used by Peter Leitner, a senior advisor to the defense agency on matters involving exports of sensitive technologies. Gaines declined to identify the individual. The individual's request for use of Leitner's computer was denied and there was no security breach, Gaines said....."

Fox News 6/29/99 Carl Cameron "...He [Richardson] met June 24 with the heads of the three largest weapons labs, and two days later Victor Reis, the head of the DOE weapons program, stepped down from his post, reportedly over disagreements with Richardson over how to improve and streamline security at the labs. Following the meeting, three Republican senators - Frank Murkowski, R-Alaska, Pete Domenici, R-N.M., and John Kyl, R-Ariz. - released a statement expressing concern that the meeting was called "to twist arms of the lab directors into supporting the Secretary's increasingly isolated position at the expense of professional analysis."..."

WorldNetDaily 6/28/99 Charles Smith "...On June 1, 1999, the acting chief of the FBI's Litigation Unit, Scott A. Hodes, released sections of a still-secret report on Chinese espionage in written testimony submitted in a federal lawsuit by this reporter.... "This document is described as an FBI report dated April 1995, and designated by the Department of Commerce as document #98-02018-OSY1-001, originated and classified 'Secret' by the FBI. Portions of the document contain information responsive to plaintiff's request for Department of Commerce records on the subject, China's Commission of Science, Technology, and Industry for National Defense or COSTIND." .... According to the FBI report, "COSTIND generally oversees a whole host of weapons production corporations with their own needs to collect S&T. It is the primary coordinating control over these corporations and also tasks a wide range of Chinese commercial and research institutes to collect high-tech military and industrial items." In addition, the report shows that known commercial espionage by the People's Liberation Army is directly linked to military and diplomatic espionage. According to the report, "The State Science and Technology Commission (SSTC) is the non-military counterpart of the COSTIND, and like COSTIND it is involved in China's S&T modernization effort. The SSTC largely oversees civilian S&T collection, using the S&T diplomats in the United States as a key collection tool." The secret report was generated as part of the standard counter-intelligence task assigned to the FBI. The report was given to U.S. Commerce officials at a classified level. The report describes both PLA "collection" operations and tools such as "diplomats in the United States." ..."

WorldNetDaily 6/28/99 Charles Smith "...The FBI has come under fire recently for providing poor counter-intelligence to the Department of Energy, concerning PLA espionage involving nuclear weapons. Yet, counter to prevailing opinions, as the report shows, the FBI counter-intelligence team was busy warning the Clinton administration about COSTIND and the PLA back in 1995....Much of the equipment included U.S. manufacturing equipment and U.S. training; thus, not only was the technology exported, but so were the American jobs. Some of the documented transfers include: Rockwell Collins GPS navigation to Shanghai Aviation, a company owned by the PLAAF, for missiles and bombers. Radiation-hardened chips for nuclear warheads, including training for Chinese technicians inside America. Blade cutters and molds for a NORINCO artillery-fuse production facility owned by the PLA. McDonnell Douglas machine tools to PLAAF-owned China National Aero-Technology Import Export Corporation for fighter/bomber production. SUN super-computer to COSTIND-owned Yuanwang Corp. for nuclear weapons development. $100 million of Tandem (now Digital) computers to Great Wall Industries, a company owned by the PLA, for long range missiles and satellites. AT&T fiber-optic communications systems to New Galaxy Technology, a PLA company, for the Chinese Army General Logistics Division. Hughes secure Air Traffic Control systems directly to the PLAAF for "military" air defense. $200 million of Motorola secure radios for the People's Armed Police, the Chinese "Gestapo" that executes dissidents and runs the "Lao Gai" prison camps. Advanced Synthetic Aperture Radar from Loral Defense to National Remote Sensing Center, State Sciences & Technology Commission of China, identified by the FBI and the Defense Department as a PLA missile guidance lab. RSA/Security Dynamics computer security encryption technology to the Laboratory of Information Security, a PLA information warfare lab, under the control of China's Ministry of Trade and Economic Co-operation (MOFTEC) and COSTIND..."

The American Spectator 6/99 Kenneth R. Timmerman "...A former Green Beret colonel, McCallum headed DOE's Office of Safeguards and Security, and detailed his concerns regarding deteriorating security of U.S. nuclear storage and research sites in annual reports to the president. He also sent dozens of memos to his immediate superior at DOE, Joseph Mahaley, who colleagues say backed him and raised the issue of lax security at DOE's nuclear facilities with top DOE management, to no avail. McCallum warned that contractors were slashing the guard force, failing to replace outdated alarm systems, and reducing the number of guard dogs at nuclear storage sites in order to boost profits. Some security systems "were so outdated, we couldn't even get spare parts," a DOE security consultant who worked with McCallum told TAS..."

The American Spectator 6/99 Kenneth R. Timmerman "...At one point, McCallum ordered DOE agents to place surveillance devices at the plant, in order to keep track of security guards believed to have ties to local militia groups. When the guards' employer, Wackenhut, discovered the bugs, it thought a disgruntled former employee was trying to gather information for a labor dispute, and brought in a private security firm to sweep the facility. "That in itself was a security violation," a source familiar with the incident told TAS. "No one but DOE-approved security people should ever have been allowed into a nuclear weapons storage facility."..."

The American Spectator 6/99 Kenneth R. Timmerman "...But the problems raised by McCallum went far beyond physical security and even beyond Rocky Flats. He also warned that, under O'Leary's "get-loose" policy at DOE, routine five-year security clearance reviews were no longer being conducted for lab scientists and other persons with access to nuclear weapons design information (known as "Q" clearances).... "

***Media Research Center CyberAlert*** 7/1/99 Vol Four No 177 "...The national media in Washington don't care, but an Alabama editorial writer is out in front on the fresh revelations of an Energy agent: "Whistleblower's Tale May Detail Another Spy Case."....In a column in Wednesday's (June 30) Mobile Register,"Whistleblower's Tale May Detail Another Spy Case," Hillyer outlined what happened in Washington, DC last week, which all the DC electronic media but FNC have skipped, and what it might mean: The more Bobby Henson talked, the more his interviewers blanched. Should we get ready for the next spy scandal? Bobby Henson is the twice-fired nuclear physicist who first alerted his boss, Notra Trulock, to possible espionage at the Los Alamos nuclear laboratory. Trulock, in turn, alerted the world. On June 18 The Wall Street Journal ran a 1,100 word story about how Henson had finally gotten his job back, courtesy of publicity about the spying he had so bravely identified. Five days later, members and staff of the House Committee on Government Reform were debriefing Henson about testimony he would give the next day. He was a scheduled witness in the committee's hearing about federal whistleblowers who had been punished, rather than praised, for their efforts. By the time he was finished, the whole scenario had changed. It seems he had more to talk about than mere mistreatment at his job. The next day, the hearing began as planned, with four other federal workers telling of being harassed or demoted for trying to wan about national security lapses. But when Henson's turn arrived, the hearing suddenly became classified. It was moved to a secure room where reporters were disallowed, as were any staff ithout the highest security clearance. What Henson had started to say the night before involved yet more security breaches, reportedly by the Chinese and the Russians. The committee followed up with another classified meeting on Monday. This could be big...." Interrupt Excerpt Indeed it could, but you'll probably have to order a subscription by mail to the Mobile Register or watch Fox NewsChannel to hear any more about it...."

World NetDaily Exclusive Commentary 7/1/99 Jon Dougherty "...Several days ago I wrote an article suggesting that perhaps the recent spate of U.S. Theater Ballistic Missile test failures were the result of some espionage. The theory goes that Chinese agents working at U.S. nuclear weapons facilities may have uploaded viruses into the missiles, causing their failures. I wrote, based on an interview with Ken Russell -- who's an expert in the area of missile/aircraft guidance software -- that it would be arduous if not impossible to locate such viruses..... Now, just under two weeks later, here is this -- sent to me by Russell -- from yesterday's Washington Post: DOE Probe Finds External Security Ills at Livermore Lab The team -- which included active and retired FBI, CIA, Secret Service and military personnel -- probed the Livermore lab's response to external security threats, such as attacks by terrorists or computer hackers, and determined it was not prepared for them. (Russell highlighted the important parts for me)."This proves what I suspected is probably right," he said in his email message. Indeed it certainly seems that way or, at a minimum, it certainly seems more plausible now. ...For some time now China experts and research analysts at the CIA, DIA, NSA and other intelligence organizations have known that one of China's military strategies is something called "asymmetric warfare." That is a concept whereby a China that is weaker in conventional weapons systems attacks critical computer, satellite and communications infrastructures of "an enemy in order to achieve relative parity on the battlefield. Many of the systems China has targeted for this kind of warfare are endemic only to the United States. The Chinese strategy is simple. Take out the enemy's ability to see us, to communicate with their forces, and to launch and guide weapons against us and we can make this an even fight..... So it's not a "conspiracy theory" and it isn't something that's "five to ten years down the road." Russell, who has been involved in B-1 and B-2 bomber software development, has held the belief for years that spies -- especially Chinese spies -- have been screwing with our software programs designed for our latest weapons systems. He became all but convinced when the U.S. theater missile defense tests failed several times in a row. Now, after the Washington Post story, he is more than convinced -- he's worried. And he ought to know because he knows what he is looking for. He will admit that such software "glitches" all the time. But what he has seen surpasses what he believes are simple "glitches." Is he right? Well, maybe the more pertinent question is, "Do we want to take a chance thinking he's wrong?"..."

The Oklahoman On-line AP 5/12/99 "...Stung by an espionage scandal, Energy Secretary Bill Richardson ordered a broad array of security upgrades Tuesday and directed a slowdown of the administration's declassification of Cold War-era nuclear documents. "It's critical that we guard our secrets more thoroughly," and there has been some concern that the declassification program was moving too fast, he said in an interview. Richardson said he will consolidate the department's $800 million, widely dispersed security apparatus under a single "security czar" with increased power over the weapons laboratories, which traditionally have cherished their independence..... "

Public Diplomacy Query 7/10/99 Freeper Born in a Rage "…TN- none given, Title: Unprecedented Joint Hearing Examines Security at DOE Weapons Labs Date: 6-23-99 "How can it be it took less than three years for this country to constuct the first atomic bomb at Los Alamos, but it took in the last several years, four years, for someone to fix a lock on a door protecting nuclear secrets," Rudman told senators. "It's pathetic," he said. "Never before," said Murkowski, "have the members of the special investigative panel witnessed a bureaucracy, a culture so thoroughly saturated with cynicism and disregard for authority." …"

Baltimore Sun 7/8/99 Mark Matthews "…The United States is ill-prepared to combat a growing and "grave" threat from proliferation of nuclear, chemical and biological weapons around the world, a high-level government commission concludes. Nightmare scenarios include a disgruntled Russian scientist selling nuclear-weapons fuel to Iran, or anthrax being released in a subway at rush hour, sending 6,000 people to emergency rooms. "These events have not taken place. But they could," warns the panel, chaired by former director of Central Intelligence John M. Deutch. The commission will officially release its report next week, but a draft was obtained by The Sun. Particularly alarming is what the panel calls the continuing economic meltdown in Russia…..But the federal government's ability to respond to this threat is hamstrung by a series of policy and bureaucratic obstacles, the panel says. "The commission finds that the U.S. Government is not effectively organized to combat proliferation," it says in a summary of the 140-plus page report…. "We still can detect on a handful of the thousands of possible chemical and biological threats, and those few that can be detected require the use of many sensors that have limited range," the report says. Efforts to prevent leakage of technology and talent from the former Soviet Union have been hampered by overlapping and confused assistance programs, the report says…. The intelligence community and law enforcement came in for some of the most detailed criticism. Discussing intelligence, it said, "There is no better reminder of the need for improvement than the unexpected Indian nuclear test in May 1998." Further on, the report hints at the danger of injecting political bias into the intelligence process, saying "biased intelligence courts policy failure, and said "good intelligence and the rough and tumble of the open political process do not mix." …."

Associated Press 7/14/99 H Josef Hebert "…The Energy Department official in charge of nuclear weapons programs said Wednesday he felt "out of the loop'' about a three-year espionage investigation at the Los Alamos lab and only learned the identity of the key suspect from the newspapers. Victor Reis, who recently submitted his resignation as assistant secretary for defense programs, said he knew of concerns being raised by DOE security officials about the weapons labs, but felt the problems were being addressed by others in the department. Reis conceded that perhaps he "could have pressed harder'' in addressing the security issue, but he said he understood that "people recognized there was a growing problem'' and were dealing with it….But some DOE security officials said Reis was briefed to a point where he should have expressed greater alarm. "He was interested in the science and not the security. He distanced himself from the issue whenever he could,'' maintained Edward McCallum, director of DOE's Office of Safeguards and Security. "He took advantage of the structure to dodge and move. We told him in grueling detail about the (security) problem and he did not react.'' …"


fox news wire 7/15/99 "…A U.S. House of Representatives panel Thursday moved to withhold $1 billion to force the Energy Department to overhaul its counter-espionage programs after China's alleged theft of U.S. nuclear secrets. An Appropriations subcommittee agreed during a closed session to bar the Energy Department from spending $1 billion of the roughly $4 billion it is slated to use on nuclear weapons next fiscal year until its security programs have been restructured or spun off to a separate agency….."

Sacramento Bee 7/8/99 H Josef Herbert Nando Media AP "…Energy Secretary Bill Richardson has agreed to a Republican proposal to consolidate nuclear weapons programs under a semiautonomous agency under the Energy umbrella, a department official said Wednesday. The agency, which would remain under his control, would run the department's complex of nuclear weapons laboratories and other facilities that assemble and maintain the weapons stockpile, the official said, speaking on condition of anonymity….. "

AP 7/22/99 "...The CIA has found maps showing the correct location of the Chinese embassy in Belgrade that NATO mistakenly bombed on May 7, but accurate maps were never consulted by target planners, CIA director George Tenet said today. Testifying before a House committee today, Tenet also said that some CIA employees were aware of the correct location of the Chinese Embassy but they were not part of the target planning process....Although the CIA was not intending to target the embassy and therefore was not looking for it, Tenet said that had target planners consulted knowledgeable individuals for accurate maps the error in pinpointing the Yugoslav directorate would have become clear.....Hamre said that despite Tenet's testimony, he considered the bombing error being primarily the Pentagon's responsibility, not the CIA's. In particular Hamre said that the process of developing "no strike'' lists with information about schools, hospitals, embassies, and other facilities to be avoided, is clearly flawed. "The system is inadequate because it is currently dependent on databases which are not adequately updated, '' Hamre said...."

Washington Post 7/23/99 Vernon Loeb "...The director of the CIA told Congress yesterday that he takes "ultimate responsibility" for the accidental bombing of the Chinese Embassy in Belgrade and promised to change the agency's procedures to ensure that such a mistake cannot happen again. In his first public testimony about the May 7 incident, Director of Central Intelligence George J. Tenet said the air strike by a U.S. B-2 bomber was aimed at a Yugoslav arms agency, which was the first and only target selected by the CIA during NATO's entire 78-day bombardment of Yugoslavia..... Tenet attributed the error, which cost the lives of three Chinese citizens and wounded more than 20, to poor targeting procedures, inadequate review and faulty databases -- all factors previously explained in detail to the Chinese government by the Clinton administration. "It was a major error," Tenet told the House Permanent Select Committee on Intelligence. "I cannot minimize the significance of this." ..."

CNN 7/22/99 Brad Wright "...CIA Director George Tenet said Thursday a flood of news leaks about sensitive matters are jeopardizing national security -- and 95 percent of the leaks are coming from the executive branch of government. "The nature of the leaking that's going on in this town is unprecedented. It is compromising sources and methods. It is jeopardizing American security and there are people in our government who think they have some free pass to do this for their own pleasure," said Tenet, who was testifying before the House Intelligence Committee at its first public hearing about the bombing of the Chinese Embassy. ....However, the tone of concern over the purported leaks was unmistakable. Tenet pledged that those responsible will be held accountable. "I want to catch somebody more than anyone else in this government because (of) what it does to the effort of the men and women of our intelligence community and how it abuses the security of Americans," he said. "Sooner or later we will catch somebody, and we'll fire them or prosecute them but what they're doing is devestating to the security of this country. It's shameful and we're doing everything we can to catch them." ...."

Washington Times 7/25/99 Andrew Gillagan (London Sunday Telegraph) "...Serious failings in intelligence, training, weapons and other hardware lay behind NATO's disappointing performance in Kosovo, according to extracts from a British Royal Air Force study seen by the London Sunday Telegraph. Intelligence reports about Serbian troop and equipment locations took up to three days to reach front-line attack squadrons, by which time the Serbs had changed position. Many pilots found themselves "bombing old tank tracks" or civilians as a result, the document says. U.S. intelligence "bureaucracy" is blamed...."

Investor's Business Daily 7/27/99 John Berlau "...The Chinese military is getting more than U.S. weapons technology. It's soaking up U.S. money, too. The unanimous House report on technology transfers to China concluded: ''Increasingly, (China) is using U.S. capital markets both as a source of central government funding for military and commercial development and as a means of cloaking U.S. technology acquisition efforts by its front companies with a patina of regularity and respectability.'' ....Investor's Business Daily has learned that some of the funding for companies believed to have connections with Chinese military or intelligence operations has come from America's largest public pension fund: the California Public Employees' Retirement System, or Calpers. Calpers has $159 billion in assets. About a million state and municipal employees depend on it for their retirement. Investments in state-owned Chinese companies could pose financial risks for the retirees as well as national security risks, some analysts warn. IBD showed a list of Chinese companies held by Calpers as of April 30 to Roger Robinson, a director of international economics policy on President Reagan's National Security Council. ''It should cause some concern if they're still holding that paper in light of what are now publicly identified concerns,'' Robinson said..... Robinson says three Chinese companies stand out: Cosco. Calpers held $2.7 million worth of Cosco Pacific Ltd., a subsidiary of the China Ocean Shipping Company, three years after a company ship was caught trying to smuggle illegal firearms into California..... Citic. Calpers held about $18 million in two subsidiaries of the China International Trust & Investment Corp...... China Resources. Calpers holds $8.7 million in China Resources, a holding company some China experts say is often used as cover for spying..... ''Aside from moral implications,'' the report concluded, ''there are potential financial consequences of (investing in companies that aid weapons) proliferation activity, which could negatively impact investors.'' For example, Robinson says, a company tied to a foreign government that's caught illegally dealing in weapons could have sanctions imposed on it by arms-control agencies. Owners of the fund could take a huge financial hit....."

WorldNet Daily 7/27/99 Jon Dougherty "...As if this should surprise us, the London Times reported this past weekend that Russian computer hackers had stolen enough U.S. weapon systems data to make China's nuclear weapons theft seem like honest bargaining. That's a pretty remarkable feat, to say the least, but it also proves what critics of this administration's pitiful security record have repeatedly said -- that there is no security for the nation's most advanced weapons and computer systems. The Times reported that U.S. officials have uncovered a Moscow-based intelligence operation known as "Moonlight Maze," a continual cyberattack "so sophisticated and well coordinated that security experts trying to build ramparts against further incursions believe America may be losing the first 'cyber war.'" The computer systems of U.S. corporations and think tanks have also been 'attacked' and have had large amounts of data stolen.....Gee whiz, if we don't figure out how to stop these cyber-thefts, our weapons technology will eventually be used against us and then there won't be anyone left to give a tax cut to. Nothing -- not government or private industry secrets -- will be immune from hacking nor safe from cyberattack. Cyberattacks can also be used to disrupt information systems or destroy them, as well as extract information from them...."

7/23/99 to Louis Freeh FBI from Rep Weldon "...I am writing to convey my strong concern about a serious breach of United States national security. According to Insight Magazine, in October Sandia National Laboratory officials sold as surplus an Intel Paragon XPS supercomputer with a capability between 150,000 and 200,000 million theoretical operations per second (MTOPS) -- one of the United States' most capable supercomputers operating today. The potential national security ramifications of this sale are disastrous. As I understand it, we remain unaware of the current location of this supercomputer -- it may even have already been transferred out of the country. If, in fact, this computer is or has been successfully transported out of the United States, the capability it will provide to the Chinese in their efforts to improve their nuclear weapons capability is enormous. In my opinion, this could be one of the most significant breaches of our national security. The problem is magnified because we do not know what the computer was used for at Sandia National Laboratory. There is a very real possibility that nuclear secrets may be stored on the system's hard drive. Even with a "wipe" of the supercomputers memory, much of the information that was stored on the system can be retrieved using advanced techniques. There also exists the very real possibility that the Chinese have reassembled the supercomputer and are utilizing the system's capabilities right here in the United States. The possibility also exists that the Chinese may attempt to reverse-engineer the machine. ....As I understand it, the Department of Energy -- once alerted by the Intel Corporation of efforts by the buyer to obtain key components to reassemble the supercomputer -- attempted to reacquire the supercomputer by offering $2.5 million for its return. It had been sold to the Chinese national at the bargain basement price of $30,000. This appears to me as an attempt by DOE to quietly cover up the diversion...."

Broken Arrow 8/2/99 "...According to U.S. intelligence authorities, China's own political intelligence analysts are keenly aware of the facts surrounding the bombing, and recognize the problems in American intelligence which caused it..... As one of these authorities told SOURCES, "China can't be so stupid that they don't understand what happenedthey have very good intelligence analysts of their own and they know the problems that caused this. They just aren't so stupid that they wouldn't understand what has happened." .... "Over the last 13 years, we have gutted our intelligence and military capabilities, and now the chickens have come home to roost," said Sen. Richard Shelby, chairman of the Senate Intelligence Committee, during the recent hearings on the intelligence budget which were in response to the Chinese embassy bombing. The bombing is "indicative of what happens when you ask too few people to do too much," he said, adding that years of intelligence budget cuts "have stretched our people to the breaking point." Bernard Trainor, a retired general and co-author of a book on the Persian Gulf War, was quoted as saying that "it's incredible at this stage of the game that they don't have up-to-date maps.". John Pike, director of the Space Projects program of the Federation of American Scientists and an imagery intelligence expert, says that U.S. intelligence is behind in developing the kind of building-by-building information that modern strike planners would require. In addition, he stated that the intelligence community isn't currently focused on the intelligence requirements for targeting individual buildings...."

Wall Street Journal 7/30/99 Jamie Suchlicki "...In February, a top-level Chinese military delegation, led by Defense Minister Chi Haotian, visited Cuba. It was the first time a Chinese minister of defense had been to the island... In 1993, President Jiang Zemin visited Cuba and Fidel Castro reciprocated by visiting China in 1995. Within the past two years, Cuba and China have exchanged high-level military and civilian delegations, including visits by Raul Castro and Cuba's top generals to China and a trip to Cuba by General Dong Liang Ju, head of the Chinese Military Commission. China has become increasingly vocal in its opposition to the U.S.'s Cuba policy, particularly the embargo, and Cuba condemned last month's accidental NATO attack on the Chinese embassy as "an act of aggression, a genocidal action" by the U.S.. A U.S administration official, who asked not to be identified, says that "the U.S. is tracking very closely Chinese activities in Cuba. As closely as we can."....There can be little doubt about what Cuba wants from China: economic aid in the form of trade and investment from a partner that couldn't be less interested in human rights. ... But evidence is mounting that China's main interest in Cuba is not dissimilar to a use that attracted the Soviets to the island: It is an ideal spot for electronic eavesdropping on communications on the American mainland--in other words, a good base for spying. It also is a useful relay point for routing intelligence back home, which is what the Soviets used it for back in the Cold War days.....Intelligence sources say that the 1970s Soviet electronic facility in Lourdes, near Havana, is still operational for monitoring U.S. military and commercial communications. These sources also say that China is using and improving Cuban capabilities in this area and moving to develop its own on the island. An internal May 13, 1999 U.S. government memorandum claims that "China may have participated in the construction of a short-wave transmitting site" in Havana. The U.S. administration official I spoke with said the U.S. is aware of the rumors that China seeks to establish a signals collection facility on the island, "but we are not aware of any evidence that such a facility exists." Richard Baum, UCLA professor of political science and China expert, points out that an electronic collection facility in Cuba "would fit with Chinese electronic warfare priorities and objectives."..."

Defense News 8/9/99 George Seffers "...Despite increasing rhetoric from the U.S. Defense Department on the need for improved computer network security, hackers and other computer experts say the Pentagon's deeds so far do not keep pace with its words. The Pentagon just underwent what John Hamre, deputy undersecretary of defense for acquisition, calls "the first cyber war" in Kosovo -- and did so apparently without losing any significant cyber battles, but hackers insist the department's information systems still are not secure. There were some hacker attacks detected on NATO Web pages during the air campaign over Yugoslavia, but Pentagon officials have said little damage was done. Largely in reaction to FBI raids on known or suspected hackers, some retaliated with attacks on U.S. government sites and taunting of the FBI. Among the sites hit this year were the White House and Senate Internet home pages, as well as some Army and Navy sites. .... "

Insight Magazine 5/26/97 Timothy Maier "...Red Chinese spies are among us. Their infiltration is so deep, say U.S. intelligence experts, that the prime targets appear to be America's supersecret encryption and satellite technologies. Once obtained, their possession by Beijing could provide access to the most sensitive U.S. military secrets and wreck American intelligence-gathering worldwide. Interviews with Russian and U.S. intelligence specialists indicate that China also has plotted covertly to acquire top U.S. computer technology to disrupt U.S. intelligence operations and prevent American spies from monitoring Red Chinese activities.....Insight also has learned that Chinese agents have formed a secret partnership with Russian military intelligence, according to intelligence specialists working closely with the FBI. Intercepting signals from satellites and breaking into private and government computer systems are part of the purpose of this joint agreement secretly signed in 1992, says a former high-ranking Russian military intelligence agent who was stationed in Beijing and has spoken exclusively to Insight. ...The FBI learned of a major Chinese espionage plot to influence the elections last year and launched an investigation. The ex-Russian agent says China's political leaders initiated the operation after meeting to discuss how best to penetrate the U.S. government. "It was a poligical group decision," the source observes. What's surprising, says a former NSC staffer, is the reaction in the administration when the FBI reported the Chinese plot to influence the elections. "We have the smoking guns that the Chinese are trying to direct covert actions against the U.S., and nothing is done," the former staffer says. "Any other time it would have meant the expulsion of the Chinese ambassador." ..."

Insight Magazine 5/26/97 Timothy Maier "...The ex-Russian intelligence agent's allegation of Chinese penetration has been confirmed by Randolph Quon, a former Hong Kong investment banker for two decades. Quon is close to several of the Chinese princelings--the sons and nephews of China's ruling leaders who head the major Red Chinese trading companies. He says China had a "guan-zi," or connection to get access, for its U.S. political operation. "Li Peng was told the Lippo Group had a back channel to the White House, to Bill Clinton," Quon says, through "deal-maker" John Huang, the former Commerce official and ex-vice president of the Indonesia-based Lippo Group, which had estensive joint ventures with Chinese power companies. All utility companies in China are operated by the People's Liberation Army, or PLA, say defense-intelligence specialists. Quon claims 20 members of the Communist Party undertook a "strategic-information warfare campaign in the U.S." Part of that plan, he says, was taking control of Lippo--a company that worked to form a strong relationship with China for economic and military opportunities. Four days after Clinton's 1992 victory the Lippo Group sold 15 percent, and then later 50 percent, of its interest in the Hong Kong Chinese Bank to China Resources [Holdings] Co., a Chinese military front company for spy operations, according to U.S. defense intelligence agents.

Insight Magazine 5/26/97 Timothy Maier "...Senior U.S. intelligence officials say the Chinese waited patiently for an opportunity to strike and found vulnerability in a White House that seemed more concerned with filling a depleted Democratic National Committee war chest than with national security. Clinton denies security has suffered under his tenure, and Vice President Al Gore says he did nothing wrong in granting access to big-buck donors, but claims he won't "do it again." Sven Kramer, who long served the NSC at the White House under Republican and Democratic presidents, says he is disgusted with the cavalier actions of an administration that critics say put a dialing-for-dollars campaign ahead of national security. Kramer asserts he finds it difficult to believe that the United States would surrender key ports in Long Beach and at either end of the Panama Canal to a PLA-led shipping company called COSCO. He cites the "foolishness of the intelligence community" for not blowing the whistle on these operations. He is not alone. Bipartisan former intelligence officials, who asked not to be identified, trace this national-security breakdown to Clinton's out-of-control fund-raising campaign. They cite the selling of White House access to drug dealers and heads of Chinese gun-smuggling companies, as well as presidential one-on-ones with sons and daughters of the highest commanders in the PLA. They note that security clearances were overlooked and access to the president and high administration policy wonks was granted without so much as a FBI background check even for White House coffee-klatsch guests.

Insight Magazine 5/26/97 Timothy Maier "...ut for China to influence Clinton it needed a back door to the White House to push Beijing's agenda--or risk losing billions if MFN were rejected. The door was there. Enger John Huang, that former vice president of the Lippo Group, whose whereabouts now are unknown. although he was granted top-secret clearance on Jan. 31, 1994, Huang officially didn't begin work as deputy assistant secretary of Commerce for international economic policy until July 18, 1994. Senate investigators characterize Huang as a "human vacuum cleaner" who sifted through an enormous amount of classified information dealing with China as if he knew his opportunity to do so would be short-lived. During his 18 months at the Commerce Department, Huang was privy to at least 109 intelligence briefings--70 in 1994 and 39 in 1995, according to recently released records from Commerce. the numbers are a far cry from the 37 classified briefings initially admitted by Commerce, and this has Senate investigators extremely upset. "We could have been plugging up holes" and controlling the damage, says an angry investigator. "The FBI is now doing a damage assessment." Other former senior intelligence officers in both NSC and the National Security Agency, or NSA, say it would have been extremely unusual for Huang, who served in the Taiwan air force, to have been cleared for such access with a background check. "That's only done with congressmen," says a former senior NSA official. Senate investigators say they are concerned about Huang meeting with a Chinese Embassy official inside his Commerce office 30 minutes after being briefed by John Dickerson, head of the CIA's office of intelligence liaison at Commerce. Records also show Huang placed at least six telephone calls to Lippo shortly after intelligence briefings. Alarmed intelligence sources say Huang's top-secret clearance would have allowed him to see hundreds of classified documents in addition to attending briefings. Huang's clearance was not pulled until Dec. 9, 1996, nearly a year after he left Commerce to join the DNC fund-raising campaign as a finance vice chairman, Commerce records show. It is yet to be revealed whether he attended classified meetings while at the DNC. "What this says is that Huang's security clearance was waived," former NSC staffer Kramer says. "That's is rare and far too generous of the president. The president can waive security if it is considered urgent in order to go on a trip or be involved rapidly in a project." Records show Huang was not planning any trips...."

Jolly 8/4/99 "...What The Chinese Were Doing...DANGEROUS DEAL: The National Security Agency unwittingly dashed any remaining hope the administration had that China was following the agreement. In August 1996-less than three months after Beijing's May 11 pledge-National Security Agency electronic eavesdropping picked up what could only be called a smoking gun: CNEIC, the arm of the Chinese government that had sold the ring magnets, agreed to sell additional illegal nuclear weapons equipment to Pakistan. This time the Chinese were supplying diagnostic equipment and a special furnace to unsafeguarded facilities in Pakistan. According to a highly classified intercept obtained by the National Security Agency, the furnace and diagnostic equipment were to be delivered to Pakistan on September 2. The furnace was special equipment that is used for all types of high-technology metals. It is a key component for manufacturing the equipment that is used to make nuclear weapons material. The diagnostic equipment was part of the deal and is believed to be used in similar high-technology weapons production equipment. The intercept was unwelcome intelligence at the State Department, which wanted its past diplomacy on Chinese nuclear proliferation to be the end of the problem. But the information could not be ignored completely. It prompted the State Department to file a diplomatic demarche asking for an explanation of the equipment sale. It was delivered to the Chinese Foreign Ministry by a U.S. embassy official on August 30. In response, a Chinese official involved in the nuclear industry notified the U.S. embassy in Beijing on September 11 that the equipment had been sent in 1995 or early in 1996 to the Pakistani Atomic Energy Commission. He had no further information. The National Security Agency intercept was one of the rare times when secret intelligence scores a direct hit. Had its consequences not been explained away in a diplomatic exchange by the White House and State Department, it would have been remembered as one of the most important intelligence coups in the area of international security in decades. The intercept showed conclusively how the Chinese and Pakistani governments conspired to deceive the United States about their collaboration on nuclear weapons and technology transfers.

The intercept prompted the CIA to lay out the conspiracy in a memorandum sent to top officials at the State Department, Pentagon, and White House National Security Council. Written by Ken Sichel and Ray Bogusz of the Office of Weapons Technology and Proliferation, with help from Ted Clark at the Office of East Asian Analysis, the September 14 memorandum was sent on a Saturday, showing its urgency, and was classified at the highest level used for data based on intercepted messages. It bore the markings "TOP SECRET UMBRA NOFORN ORCON GAMMA." UMBRA and GAMMA are code words designating special intelligence obtained from intercepted electronic communications. NOFORN means that "no foreign" nationals should be permitted to see it, and ORCON is the intelligence marking signaling that material contained is "originator controlled" and cannot be distributed further without the National Security Agency's permission. The fact that such a highly classified document was leaked shows the frustration felt by many in the U.S. intelligence community about the way the Clinton administration was ignoring important information about weapons sales. Betrayal, Regnery Publishing, Bill Gertz, 05/99; pp. 151-152..."

Defense Information And Electronics Report 8/6/99 Richard Lardner "...Pentagon officials are considering plans to bolster the department's counterintelligence capabilities in an effort to better protect the military's critical technologies and important research programs from foreign threats, according to internal budget documents. In particular, DOD has an eye on a "data correlation" system that models and maps current and prospective threats in a way that allows military officials to better concentrate CI resources on the most serious problems. Without the improvements being debated, defense officials believe they will be fighting a 21st-century battle with outdated equipment....."Defense leadership has recognized that simply shifting resources to the crisis du jour (Khobar towers/force protection following a terrorist attacks, technology protection following the DOE experience) does not provide adequate protection nor recognize the growing threats/challenges the department's CI program must address," the documents read. Hamre, the papers add, has indicated on several occasions "that the country in general and DOD in particular has allowed its CI resources to be inappropriately reduced as a result of the end of the Cold War."..."

House of Representatives 4/15/97 Rep Cunningham "...John Huang, the Commerce Department and Lippo. John Huang, with no background check, with no background check, received top-level security clearance for work at the Commerce Department while still working for Lippo. This, despite Mr. Huang's ties to a Lippo bank that was ordered to cease and desist money laundering and despite Lippo commercial ties to China and its intelligence services, was granted access to top level intelligence services within the White House..."

House of Representatives 4/15/97 Rep Cunningham "...A January 13, 1997, letter from the Commerce Secretary Mickey Kantor says that Mr. Huang got a weekly intelligence briefing centered on the People's Republic of China and the materials related to those briefings were under the control of the CIA. And again there was no security clearance whatsoever, although they were warned, the administration, that this man [Huang] had ties to Communist China...."

House of Representatives 4/15/97 Rep Cunningham "...Robert L. Suetting, a Chinese specialist on National Security Council, warned that Mr. Chung was quote a hustler who appeared to be involved in setting up some kind of consulting operation that will thrive by bringing Chinese entrepreneurs into the town for exposure to high level United States officials...Three months later Mr. Suetting expressed concern to Anthony Lake, who was at the time President Clinton's national security adviser, after the White House learned that Mr. Chung was leaving for China and planned to get involved in the sensitive case of imprisoned Chinese dissident Harry Wu. Mr. Chung visited the White House 51 times, records show. Twenty-one of these times he was cleared for entry by the office of the First Lady. Mr. Chung made 17 visits to the White House after the April 1995 Committee on National Security memorandums identify him as a hustler and urged caution, and 8 visits after the second warning memorandum was sent to the NSC, Director Anthony Lake, in July 1995. In March 1997, in her first extensive public remarks about the DNC fundraising controversy, the First Lady said she did not know why Johnny Chung had as much access and was spending so much time around her staff offices in the executive office building, but yet 21 of the 51 times it was the First Lady's office that granted direct access to Mr. Chung...."

House of Representatives 4/15/97 Rep Cunningham "...Mr. Speaker, there is a current report, an updated report from the FBI, that states that Cosco is currently actively involved in placing intelligence officers, spies, in all of their ports of call. That is a national security interest....We cannot discuss the actual details of that intelligence briefing as it would not be prudent and it was a classified briefing. But I want to mention that two of the representatives that represent, and I understand their needs, they represent the people that are looking for jobs, one of those individuals stated that, and I quote, `All intelligence agencies that briefed us have assured us that Cosco represents no threat to our national security.' I want to tell you, Mr. Speaker, it is an untruth, the fact that the same intelligence briefers, the CIA, the National Security, the Coast Guard, have all stated that no such comment was ever made and ever intended. And as a matter of fact, they were very, very upset at the dear colleague press release. Why? Because they stated that this is a policy issue for them to discuss, and they would never say that there is a national security interest, nor would they say that there is not. So I would submit that is not the case and that after careful deliberation of experience that there is a national security interest...."

House of Representatives 4/15/97 Rep Cunningham "...According to the New York Times, Chinese officials had conveyed an ominous message to Anthony Lake, President Clinton's national security adviser, just weeks earlier: `The possibility that American interference in Beijing efforts to bring Taipei to heel could result in devastating attack on Los Angeles.' [Page: H1535] [TIME: 2245] San Diego Union Tribune, March 31, 1996..."

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... In 1995, the Department of Energy (DOE) and the Central Intelligence Agency (CIA) independently acquired certain information indicating that the People's Republic of China (PRC) may have acquired certain highly-sensitive information on several U.S. nuclear weapons, including design information on the W-88 warhead Although this new information indicated the possible compromise of several warheads, DOE's initial investigation focused exclusively upon the W-88. The DOE team apparently failed to look into the theft of information on the other warheads at all.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... The DOE completed its administrative inquiry on May 28, 1996. It was forwarded to the FBI, which began its own full-scale field investigation at the direction of the FBI's "Agent A." The FBI already knew of Wen-Ho Lee, having investigated him not only for the abovementioned 1982-84 matter, but also on account of a separate FBI investigative lead This third FBI look at Wen-Ho Lee -- this time in connection the W-88 matter -- began only two days after DOE's inquiry report had arrived. The Bureau's Albuquerque Division field office took primary responsibility for the investigation, assigning it principally to "Agent D" and his supervisor, "Agent C."

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... Not long into its investigation, FBI officials at the Albuquerque field office decided that it would be important to gain access to Wen-Ho Lee's office computer. In November 1996, the FBI's "Agent D" contacted Terry Craig, team leader for counterintelligence at LANL, regarding the possibility of searching Lee's computer. ..... To begin with, their discussions -- and subsequent dealings between FBI and LANL -- showed a remarkable degree of confusion between the idea of computer "search" and computer "monitoring."...Though he had apparently failed to ask Craig for information directly relevant to a full computer "search," "Agent D" advised FBI headquarters that he would provide the Bureau's National Security Law Unit (NSLU) with any documentation he received from LANL in this regard. This documentation, it was hoped, would permit the FBI to determine whether it had the authority to monitor the suspect's activities without having to apply for a search or electronic surveillance warrant under the Foreign Intelligence Surveillance Act (FISA) In response to this request, Craig consulted certain officials at Los Alamos and then advised "Agent D" that while LANL was implementing a new computer training program that involved signing a waiver form, employees at LANL's weapons division -- including Wen-Ho Lee -- had yet to complete this process. Craig also provided "Agent D" with three documents describing current computer policies at LANL...While it was apparently true that employees of the weapons division had not signed this "training waiver," Craig's inquiries around the laboratory failed to disclose that Wen-Ho Lee (and other LANL employees) had in fact signed different consent-to-monitoring waivers with regard to both classified and unclassified laboratory computers in April 1995 Craig, however, never looked further into this matter, and did not learn of the 1995 waiver until 1999 Craig's failure to supply the FBI with accurate information was critical. It is still unclear whether Lee's computer waiver actually would have permitted the FBI searches desired This said, however, if the Bureau had known of the 1995 waiver, it might have been possible to access Lee's computer much earlier. In turn, had investigators thus discovered the classified file transfers that Lee was actually undertaking with his computer, there would likely have been little dispute with the Department of Justice over the existence of probable cause for FISA surveillance of the Lees.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... To make matters worse, Craig had also assumed, on the basis of his own experience elsewhere in the laboratory, that LANL's weapons division did not employ security "banners" to persons using unclassified e-mail accounts. He did not discuss this issue with anyone at this division, however, and thus failed to learn that some computers -- apparently including the one Wen-Ho Lee used -- did indeed display such banners. Thus unaware of the facts, Craig informed "Agent D" that no banners were used in the division. (Craig did not discover this mistake until 1999. It is uncertain precisely what banners were used in the weapons division at that time, but had Craig pursued this matter further, it would at least have been possible for NSLU to make an informed decision on whether or not FISA authority was required.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... Given that the FBI believed that probable cause existed to mount FISA surveillance against Wen-Ho Lee and viewed this espionage case as an extremely important national security matter -- one important enough to provoke the first-ever appeal of a FISA denial within the Justice Department -- it is remarkable that Director Freeh at no point contacted the Attorney General about this issue. As even OIPR's then-Acting Counsel agreed, the vast "significance of the case" was not "lost on any of us." Apart from Lewis' effort to raise the matter with the Attorney General, however, the Bureau was apparently content to take "no" for an answer. It is equally remarkable that no Justice Department official apparently felt that this matter deserved any serious personal attention from the Attorney General.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "...After Seikaly's decision, the FBI was frustrated that "the FISA review had been turned down again" and discouraged about its ability to mount electronic surveillance against the Lees. Indeed, FBI Director Louis Freeh met with Deputy Energy Secretary Elizabeth Moler to tell her that there was no longer any investigatory reason to keep Lee in place at LANL, and that DOE should feel free to remove him in order to protect against further disclosures of classified information. In October 1997, Freeh delivered the same message to Energy Secretary Frederico Peña that he had given to Moler.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "...Freeh took this step out of concern that DOE might be using the investigation as an excuse to avoid making necessary security reforms at the nation's nuclear laboratories. An FBI report in April 1997 had identified major security problems at the laboratories, but thus far DOE had taken no action. DOE officials, in fact, were apparently resisting these changes, ostensibly on the ground that they did not wish to interfere with the FBI's "ongoing investigation" by alerting Lee in some fashion. Freeh's messages to senior DOE leadership were intended to help remove the grounds for this excuse and help prompt the Energy Department to take action, though the recent report on security at the DOE laboratories suggests that Freeh's hopes were apparently in vain.

Arkansas Democrat-Gazette 8/8/99 Meredith Oakley "...Surmising that things are a mess today within the Department of Justice doesn't require any great stretch of the imagination. Things were a mess there from the get-go. Or should one say Waco? If we could reconstitute the combined genius of Peter Sellers and Blake Edwards, we still couldn't do justice--excuse the pun--to the Clinton administration's Justice Department under Janet Reno in one feature-length film. It would require more sequels than Rocky, more installments than "The Perils of Pauline." Take, for instance, the latest episode involving Chinese pilfering of America's nuclear secrets. According to a report just released by the Senate Governmental Affairs Committee, the U.S. government's three-year inquiry into Chinese espionage at several U.S. nuclear weapons labs was a major fiasco, flawed from beginning to end. "The government's investigation was not a comedy of errors, but a tragedy of errors," said the ever-eloquent Joe Lieberman, Democratic senator from Connecticut.....But here's the kicker: Los Alamos officials told the FBI back in November 1996 that Lee had signed a privacy waiver allowing his computer to be searched, which would have avoided all the squabbling. For its part, the FBI says it did not search the computer until recently because it did not learn until this year that the waiver had been signed...."

AP 8/8/99 "...The White House hasn't decided whether to veto a proposal that would create a semiautonomous agency to protect nuclear weapons programs and laboratories, Chief of Staff John Podesta said Sunday. "We're looking at it right now,'' Podesta said on NBC's "Meet the Press.'' The Clinton administration has some problems with the proposal, he said, "but whether it rises to the level that we're going to have to veto'' remains unclear..... The National Nuclear Security Administration would remain under the energy secretary but largely would control its own budget. Energy Secretary Bill Richardson has said he would go along with a new agency but only one that does not sap the authority of the energy secretary and place security and counterintelligence responsibilities outside the agency...."

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... For his part, the FBI's "Agent D" also inexplicably failed to pursue this computer-access issue with appropriate diligence. Despite having been advised by Craig that Wen-Ho Lee and the rest of the weapons division had not yet signed computer-monitoring waivers as part of the ongoing LANL training program -- but, implicitly, that they were expected to do so -- "Agent D" apparently never again consulted Craig about this issue. Moreover, though the purpose of requesting documentation from Craig was to provide FBI headquarters with the information necessary to support a determination as to whether FISA authority would be needed in this case, "Agent D" neglected to send headquarters the documents Craig gave him. According to "Agent D," he simply got distracted, and "got involved in many other things at the time. These failures were also potentially quite significant. To the extent that a subsequent waiver through the LANL training program could have been obtained, it might have (as described above) greatly affected later disputes over probable cause under FISA. Moreover, "Agent D's" apparent failure to forward Craig's computer training documentation to Washington also deprived the NSLU of any firm basis for its determination that FISA authority would be required. Even were no waiver to have existed, it is significant that LANL's computer policy assumed that the laboratory did have the right to monitor employees' computers at will for "waste, fraud, and abuse"; the documents provided "Agent D" by Craig were intended to convey the substance of this policy to the FBI. Because of "Agent D's" failure properly to inform his superiors, the NSLU was apparently never informed of this policy, and thus never given the chance to decide whether the ability of LANL to access these computers in order to prevent "abuse" also meant that the FBI could do so in order to prevent espionage or the unauthorized disclosure of classified information.

http://www.senate.gov/~thompson/wen-ho.html 8/6/99 Senator Fred Thompson and Joseph Lieberman "... The FBI has conceded that it proceeded too slowly with its investigation, and perhaps should have requested FISA authority earlier, but in April 1997 -- prompted by Lee's request to his LANL superiors to hire a Chinese national as his research assistant -- the Bureau finally began preparing a formal FISA request. On June 5, 1997, the FBI's "Agent A" completed a "letterhead memorandum" (LHM) addressed to DOJ's Office of Intelligence Policy and Review (OIPR), asking that office to submit to the Foreign Intelligence Surveillance Court (FISC) a request for a FISA surveillance warrant. For unexplained reasons -- and despite the fact that the FBI's field office had wanted a computer search in 1996 -- the Bureau did not request a computer search in this application; it merely requested other types of surveillance.

On June 30, the FBI sent its completed FISA request to OIPR. After receiving the FBI's draft FISA request, OIPR reviewed it and drafted a proposed application to the Foreign Intelligence Surveillance Court (FISC). Allan Kornblum, then OIPR's Deputy Counsel for Intelligence Operations -- the office within OIPR responsible for FISA matters -- received the letterhead memorandum and immediately recognized the huge national security importance of this case. Kornblum thought the case "important and urgent," and was "shocked to read about the loss of the nuclear weapon design [information]. * * * I was also shocked by the facts, the idea that this guy is making official trips to the PRC to meet with his counterparts in nuclear weapons design. I couldn't believe that. Spurred by these concerns, Kornblum quickly assigned the Lee case to David Ryan, a line attorney in his office, who prepared a draft application to the FISC over the Independence Day holiday weekend. Kornblum reviewed Ryan's draft application, and "found it wanting."It would be necessary, he felt, to consult further with the FBI "in order to complete the application and send it forward." Kornblum annotated Ryan's draft with his questions and comments. A series of discussions then ensued, both within OIPR and with FBI agents knowledgeable about the case, and two further draft FISA applications were prepared as the FBI added additional information in response to Kornblum's queries. (Only drafts one and three can presently be found, however.) As described below, OIPR attorneys and the FBI agents held their final 1997 meeting on this subject in August. As Allan Kornblum recalls, "Following that meeting, the case was put back to the Bureau to further the investigation in order to flesh out and eliminate some of the inconsistencies, to flesh out some of the things that had not been done * * *." OIPR would not hear back from the FBI for nearly a year and a half.

Defense Daily 8/5/99 Vago Muradian "...Despite Pentagon invitations that British Aerospace and Germany's DaimlerChrysler Aerospace [DCX] consider unions with leading U.S. firms, executives on both sides of the Atlantic are growing increasingly convinced that the prospects of a successful deal are dim in the face of political, diplomatic and export control hurdles, according to senior government and industry sources.... Defense globalization, and shaping policies that balance security concerns with economic necessity, has been a focus of the Pentagon leadership for more than a year, since DoD disclosed its opposition to the planned $11.6 billion merger between Lockheed Martin [LMT] and Northrop Grumman [NOC]. Soon after the Pentagon and Justice Department concerns with the deal became public on March 9, 1998, Lord Simpson, the chief executive of Britain's GEC, expressed interest in buying Northrop Grumman should the deal fail.....Deputy Defense Secretary John Hamre and Pentagon acquisition chief Jacques Gansler initially were cool toward the notion of defense globalization, over security questions. But over the year, both have expressed growing support for major transnational deals involving U.S. contractors. The Pentagon leadership also has commissioned several studies on globalization, and a Defense Science Board panel on the topic last week submitted a draft version of its recommendations to Gansler....The recent DSB study on globalization recommends that the U.S. government focus its attention on protecting systems, with less attention on the parts that go into them. The ability to move U.S. technologies across worldwide operations remains a key issue that has been raised by both DASA Chief Executive Manfred Bischoff and Weston during their meetings with Hamre..."

U.S. News & World Report 8/16/99 Kevin Whitelaw Warren Strobel "... On August 20 last year, 13 American cruise missiles slammed into a dusty pharmaceutical plant in Sudan. The strike, the White House said, was in retaliation for the bombings of the U.S. embassies in Kenya and Tanzania two weeks earlier. But many of the U.S. intelligence analysts who keep tabs on African affairs were kept out of the loop, and they were skeptical that the plant, known as El Shifa, was a chemical weapons facility connected to the alleged terrorist Osama bin Laden.... It's still down today. The administration's evidence against El Shifa remains secret-even to most American officials. What is known isn't encouraging. In the strike's immediate aftermath, an informal review conducted by the State Department's Bureau of Intelligence and Research failed to turn up a single piece of evidence linking El Shifa to chemical weapons or bin Laden. The bureau was discouraged from even reporting its findings. Says one U.S. intelligence official, "To this day, I don't know" why they chose El Shifa. ..... The decision to bomb El Shifa was made by fewer than a dozen top U.S. officials. This meant that experts on both Sudan and chemical weapons were not consulted about the government's evidence. Over the past year, White House officials, including National Security Adviser Sandy Berger, have backed away from their charge that El Shifa was actually producing chemicals for weapons as opposed to being a storage or transshipment point. But Clinton advisers insist they have seen no new evidence to undercut their conclusion that the plant was linked to bin Laden and the Iraqi chemical weapons program. Another factor, says one official, "tipped the scales": It could be struck with little risk of civilian casualties...."

USA Today 8/15/99 Edward Pount "...In a stinging draft report, a congressional agency says the Defense Department has "created risks to national security" by failing to conduct thorough security background investigations on personnel requiring access to classified information. Nine out of every 10 security investigations reviewed by the General Accounting Office, the investigative arm of Congress, were found to have been incomplete, according to government officials familiar with the preliminary report. The officials say the GAO reviewed 531 background investigations and found that 488, or 92%, did not fully meet federal investigative standards. In 59 cases, or 12%, the Defense Department failed to follow leads on potentially serious issues involving criminal histories, alcohol and drug use, and financial problems, the GAO reported. The figures could change. The GAO will issue its final report in October, and officials declined to comment, except to say their analysis is continuing...."

http://www.scmp.com/News/HongKong/Article/FullText_asp_ArticleID-19990818015125294.asp 8/18/99 Alex Lo "…


US computer giant Sun Microsystems has refused to send two expert witnesses to Hong Kong to testify in a case alleging the illegal sale of a supercomputer to a PLA weapons research institute, a court heard yesterday. Prosecutor Louisa Lai Nga-man sought an adjournment to allow time to take statements from the witnesses in the United States. "Sun Microsystems has said it will not send its two employees to Hong Kong to testify," Ms Lai told Sha Tin Court. "In light of this, we will have to interview the witnesses in the US." She said summonses would be issued by a US court and statements taken from the two witnesses in America….Automated Systems allegedly imported three high-performance Sun Microsystems computers into Hong Kong and re-exported one of them, an Enterprise E5000 Network Server, to the mainland between February and August 1997, without proper licences. The computer is said to have found its way to the Changsha Institute of Science and Technology, which is involved in research on advanced weapon systems for the PLA…."

http://www.newsday.com/ap/rnmpne04.htm 8/20/99 Robert Burns AP "…The Central Intelligence Agency said Friday it has cut off former CIA Director John Deutch's access to classified information in response to his having violated agency rules by keeping secret files on an unsecured computer at his home. Suspending the security clearances of a former CIA director is highly unusual. Agency spokesman William Harlow said he knew of no precedent. The decision was made by CIA Director George Tenet, Deutch's immediate successor, who acted after reviewing a CIA inspector general's July 13 report on the former director's improper handling of classified materials. ``Director Tenet regrets that it was necessary for him to take this action, particularly in light of Dr. Deutch's distinguished record of public service,'' the CIA public affairs office said in a written statement. The CIA normally does not announce suspension of security clearances but did this time because of prior news coverage about the Deutch case, officials said. Deutch, a former deputy defense secretary who spent 38 years in public service, was CIA director from May 1995 to December 1996. When he was leaving his CIA post, agency technicians went to his home for routine checks to ensure that secrets were properly protected. They found 31 classified documents on a CIA-issued computer not configured for classified work. In April 1999 the Justice Department decided not to prosecute Deutch but recommended that the CIA review Deutch's continued suitability to hold high-level security clearances. Justice concluded Deutch's security lapses were reckless rather than criminal….."

USA TODAY 8/20/99 Edward T Pound "…The general counsel of the Defense Security Service was removed and transferred to another Pentagon agency after he repeatedly warned superiors they were violating government regulations by taking shortcuts on security background investigations. In a series of interviews, several current and former Defense Department officials said counsel Thomas Willess was moved to the National Imagery and Mapping Agency in September 1998. During the prior two years, they say, Willess cautioned his superiors against relaxing investigative standards for background reviews. They either ignored him or in other cases didn't consult him, officials say….. The disclosure of Willess' removal takes on added significance in the wake of a draft report done by the General Accounting Office, the investigative arm of Congress. According to government officials, the GAO says top security service managers changed policies and relaxed standards, contrary to regulations and despite objections of other officials….The GAO said 92% of the investigations it reviewed did not fully meet the standards. The security service's new managers vow to fix the problems…. In a statement, Willess would say only that he had "taken positions that were not always in lockstep" with them. Current and former officials say Willess argued that the standards couldn't be changed unilaterally. When the agency decided to do many interviews by telephone in an effort to save money, he objected Willess has never been given a reason for his transfer. He also reports to the Pentagon's Office of General Counsel. He told associates he was called to that office last August and informed of his transfer. The Pentagon declined comment.

Washington Post 8/21/99 Vernon Loeb "…"Nothing that we've learned subsequent to the attacks has led anybody to [conclude], if they had to do it over again, that they would make a different decision," one senior administration official said this week. However, in a three-page analytical paper written late last July, well before the embassy bombings or the retaliatory targeting of El Shifa, CIA analysts raised questions about what conclusions could safely be drawn from the soil sample. According to officials familiar with the paper, the CIA analysts considered the presence of EMPTA to be a virtually sure-fire indicator that the plant had something to do with chemical weapons. But they could not be sure whether the plant actually manufactured VX or merely served as a warehouse or transshipment point for chemicals used in making nerve gas. Nor could they be sure how recently that activity might have occurred. The paper, which was reviewed at senior levels in the CIA and disseminated to the National Security Council staff, recommended covert efforts to obtain more soil samples to try to answer those questions. Intelligence officials also said in interviews this week that even if El Shifa did make nerve gas, they cannot explain why a high concentration of EMPTA would have been present in the soil outside the plant. EMPTA is a viscous substance that is not volatile enough to vaporize, and the plant's drainage system is unlikely to have deposited effluent in surface soil on its periphery. That uncertainty, the officials said, is another reason why CIA analysts recommended additional soil sampling at the site last July….."

PRnewswire 8/22/99 "… In another case, Newsweek has learned that among the mishandled materials found in retired CIA director John Deutch's briefcase and loaded onto his unsecured home computer were memos to President Clinton about terrorism and the Iraqi weapons program which were marked ``Sensitive Compartmented Information'' -- the highest possible level of secrecy, Klaidman reports. The CIA made the discovery in 1996. Deutch was stripped of his security clearance last week…"

Associated Press 8/24/99 Deb Riechmann "…Box-by-box, sometimes line-by-line, government record keepers have worked the past three years to declassify 600 million pages of documents, opening doors to America's secret past. Now, because Washington fears that China got its hands on U.S. nuclear secrets, these bleary-eyed declassifiers could face a daunting new task: Doing it again. Legislation headed for approval in Congress would require all of the documents to be re-examined to make sure that sensitive details about the U.S. nuclear arsenal don't slip out of the government's attic. "This is all part of the frenzy about Chinese espionage that is driving Washington crazy,'' said Steven Aftergood, who directs The Project on Government Secrecy at the Federation of American Scientists. "The idea that they're going to reread material that's already been declassified is preposterous. It will basically cripple the declassification program by driving it in circles.'' Present efforts to lift the veil of government secrecy are driven by an executive order President Clinton signed in 1995. The order instructs federal agencies to open — by April 2000 — classified records that contain historical material and are more than 25 years old. Exceptions are narrowly defined. …"

Washington Times 8/24/99 Rowan Scarborough "…The White House has drafted a new global strategy for the next century that makes the case for U.S. military intervention in a variety of trouble spots and says the nation is facing its biggest espionage threat in history. The paper, written by the White House National Security Council staff, also says the odds are growing for concerted attacks on the United States by terrorists and rogue nations. The attacks could come in the form of nuclear, biological or chemical weapons, or terrorists' bombs or cyber-attacks on information systems. "Due to our military superiority, potential enemies, whether nations or terrorist groups, may be more likely in the future to resort to attacks against vulnerable civilian targets in the United States, instead of conventional military operations abroad," says the draft document, a copy of which was obtained by The Washington Times. "At the same time, easier access to sophisticated technology means that the destructive power available to rogue nations and terrorists is greater than ever. Adversaries may thus be tempted to use long-range ballistic missiles or unconventional tools, such as [weapons of mass destruction] or information attacks, to threaten our citizens and critical national infrastructures."…. The NSC document predicts the hot pace of deployments will continue. "In our vision of the world, the United States has close cooperative relations with the world's most influential countries and has the ability to influence the policies and actions of those who can affect our national well-being," it says. Without being specific, the NSC staff says foreign intelligence agents are trying to glean U.S. secrets at an unprecedented pace. "The threat from foreign intelligence services is more diverse, complex and difficult to counter than ever before," the report says….."

The Washington Post 8/24/99 Vernon Loeb Walter Pincus "…Notra Trulock, the intelligence official who triggered the federal government's investigation into suspected Chinese espionage at Los Alamos National Laboratory, resigned yesterday amid growing controversy about his handling of the case. Trulock said in an interview he quit because the Department of Energy's inspector general last week issued a report that failed to back him up and hold senior Clinton administration officials accountable for security failures at Los Alamos. He called the report "a whitewash" and said, "I think the time has come for me to move on. I've done all I could do here." …."

New York Times 8/24/99 James Risen "….The Energy Department official who led the initial inquiry into China's suspected theft of United States nuclear secrets resigned Monday, saying he was protesting roadblocks to his pursuit of the case by Clinton Administration policy makers and other Government officials. In an interview on Monday, the official, Notra Trulock, the department's acting deputy chief of intelligence, complained that he had been squeezed out of the continuing spy investigation, code-named Kindred Spirit. "They have moved me out from any participation in the Kindred Spirit case, and from any other aspect of the management of intelligence activities within the department," Trulock said. Trulock added that he had been thinking about resigning for months because of what he said was political interference. But he said he made the final decision after the release this month of a report by the Energy Department's inspector general concerning the department's handling of the spy case. The report found no conclusive evidence to support Trulock's assertions that he had been temporarily blocked from briefing Congress on the case in 1998. "The I.G. report was the last straw," Trulock said…..Trulock's contention that the Government's investigation was slowed by interference from senior officials at the Energy Department, Los Alamos National Laboratory and the White House quickly became enmeshed in the national debate over the proper course of United States policy toward China….. But last year, Trulock lost his job as chief of intelligence at the Energy Department and was demoted to acting deputy chief. Richardson declined to respond to Trulock's written request earlier this year to be reinstated as intelligence chief, and Trulock was told this summer that he would not be named permanent deputy intelligence chief. Larry Sanchez, the current chief of intelligence at the Energy Department, said on Monday that he had repeatedly offered to make Trulock the permanent deputy but that Trulock had declined to accept the post. And he added that Richardson had declined to make Trulock the chief of intelligence because that would have meant firing Sanchez…."

Capitol Hill Blue 8/24/99 "…The Secretary of the Department of Energy, acting on direct orders from President Bill Clinton, forced the resignation of the investigator who blew the whistle on China spying. Energy Department sources say President Bill Clinton personally ordered DOE Secretary Bill Richardson to "get rid of" Notra Trulock, the department's deputy director of intelligence because his findings had embarrassed the White House. Trulock has resigned, attacking a report issued by the agency's inspector general last week that failed to back him up and hold Clinton administration officials liable for security failures.. ``I think the time has come for me to move on,'' Trulock said. Trulock would not confirm or deny that he was pushed out of his job, but other Energy Department sources say Richardson forced Trulock out, telling the career employee that he would face disciplinary action and loss of his retirement benefits if he did not quit….. Energy Department sources say President Clinton told Richardson to remove Trulock because his findings and public statements about inaction by the White House had embarrassed the administration. In public interviews, Trulock said in public statements that senior White House officials knew about the spying and did nothing about it. "You don't cross the White House unless you have a death wish," says one longtime DOE employee. "Trulock did and he paid for it."….."We get the message," one said Monday. "Keep your mouth shut and you keep your job." …"

WorldNetDaily.com 8/31/99 Charles Smith "…And what benefit does the Chinese Army get from doing business with Clinton? According to the Rand Corp. report, "For those who oppose any subsidization of the PLA, there is thus ample evidence that profits from PLA-affiliated enterprises directly benefit the main-line forces of the Chinese military." …..One hard-core benefit for China from U.S. technology and finance is the DF-31 missile. The new Dong Feng (EAST WIND) 31 missile performed flawlessly during its first test flight. The DF-31 can reach any city in America and is armed with three nuclear warheads. The DF-31 has Clinton-supplied guidance, nuclear warhead, nose cone and solid rocket engine technologies. The DF-31 is equipped with many technologies stolen or bought from America during Clinton's term. The DF-31 success was so spectacular that the PLA Second Artillery will deploy 20 missiles by the end of 2000. According to intelligence sources in the Pentagon, China will deploy over 1,000 nuclear-tipped missiles in the next decade. …. Of course, no one has ever fought a nuclear war, and few of the pundits have studied such weapons in combat. The pundits are playing dangerous games with our lives. The DF-31 is better than the U.S. MX and Minuteman missiles. The DF-31 represents a decade of successful espionage against America. Nuclear weapons do not require large numbers to be effective. The Chinese army recently threatened to use neutron bombs on any U.S. Navy carrier that should stray too close to Taiwan. Chinese officials have already threatened to destroy Los Angeles if we help Taiwan resist an invasion. One new DF-31 missile could flatten L.A., San Francisco and San Diego….."

World Net daily 6/29/99 Charles Smith "…As early as 1995, officials in the U.S. Commerce Department were warned of Chinese military and commercial espionage, according to a recently declassified secret report from the FBI. On June 1, 1999, the acting chief of the FBI's Litigation Unit, Scott A. Hodes, released sections of a still-secret report on Chinese espionage in written testimony submitted in a federal lawsuit by this reporter. "The document is 1 of 18 documents submitted to the Court by the Department of Commerce for an in camera inspection," wrote Hodes in his testimony for Federal Judge Robert Payne. "This document is described as an FBI report dated April 1995, and designated by the Department of Commerce as document #98-02018-OSY1-001, originated and classified 'Secret' by the FBI. Portions of the document contain information responsive to plaintiff's request for Department of Commerce records on the subject, China's Commission of Science, Technology, and Industry for National Defense or COSTIND." ….According to the FBI report, "COSTIND generally oversees a whole host of weapons production corporations with their own needs to collect S&T. It is the primary coordinating control over these corporations and also tasks a wide range of Chinese commercial and research institutes to collect high-tech military and industrial items." In addition, the report shows that known commercial espionage by the People's Liberation Army is directly linked to military and diplomatic espionage. According to the report, "The State Science and Technology Commission (SSTC) is the non-military counterpart of the COSTIND, and like COSTIND it is involved in China's S&T modernization effort. The SSTC largely oversees civilian S&T collection, using the S&T diplomats in the United States as a key collection tool." The secret report was generated as part of the standard counter-intelligence task assigned to the FBI. The report was given to U.S. Commerce officials at a classified level. The report describes both PLA "collection" operations and tools such as "diplomats in the United States." …."

American Spectator 9/3/99 R. Emmett Tyrrell, Jr. "…The latest burgeoning scandal stems from the Clinton Administration's bold and stubborn involvement with corrupt Russians who stripped their country of its assets and stole from International Monetary Fund loans. This scandal might prove to be the one that finally sinks the Administration in the eyes of its friends in the media. The New York Times has been leading the press in revelations about the coziness of Vice President Al Gore with corrupt Russian figures, and other members of the press have followed. An indication of the Administration's arrogance in dealing with the clear evidence of its recklessness with the Russians comes from leaks at the CIA. Since the earliest days of the Clinton Administration, the CIA had been reporting to the White House that its policy was being endangered by Russian kleptomaniacs. James Woolsey, the Administration's first CIA director and a man of enormous probity and talent, tried frequently to notify the White House of the corruption in Moscow. In 1993 he was astonished to see a photo of a Russian crook shaking hands with President Clinton at a fundraiser. Woolsey tried to inform the President of his unsavory campaign supporter but got nowhere. The crook continued to be invited for fundraising affairs. By 1995 the CIA was regularly reporting that Vice President Gore's contacts in Russia were with crooks, most notably erstwhile Russian prime minister Viktor Chernomyrdin. A 1995 CIA report of Chernomyrdin's corruption was returned from the White House with "bull shit" written on it in the Vice President's handwriting….."

9/2/99 China's Subtle Spying Paul D. Moore "…In the furor over the investigation of Wen Ho Lee, the former Los Alamos National Laboratory scientist suspected of spying, the operating assumption of most people seems to be that where there is espionage there must be evidence of espionage. A corollary to this is that failure to produce such evidence is proof of either a bungled investigation or a rush to judgment -- in this case, a judgment that some say erroneously singled out Mr. Lee because of his race. My take is completely different. I think what we are seeing is evidence that China may have succeeded in devising an espionage strategy that can, over time, consistently defeat our ability to investigate or prosecute spying offenses. China does not normally pay an agent for information, request that the agent provide classified documents, use intelligence officers to elicit information from the agent or engage in clandestine activity like "dead drops" in the United States. This means that there are rarely the "smoking guns" that we have in other cases of espionage -- the unexplained bank deposits, the videotapes of a suspect leaving items in a hollow rock in the park. China prefers to obtain its information a little bit at a time, by having its scientists and experts exploit individuals who are visiting China in the normal course of business. The problem for American investigators and prosecutors is not to determine whether someone under investigation has provided information to China, but to prove somehow that he told the Chinese three things when he was authorized to discuss only two, or perhaps four things instead of three. This is very bad news for investigators and prosecutors, who have little they can fall back on. For example, a wiretap of a suspect's phone may provide some useful background or personality assessment information, but it is unlikely to yield instantly incriminating conversation of the "bring your documents and meet me in the park" variety. Unless a suspect for some reason is cooperative enough to confess, there is little chance that a case can be made against him. Even if it can be shown that the suspect provided information, it is likely to remain unclear whether this was deliberate or inadvertent. The principle that the Chinese apply is simple: people will almost never commit espionage, but they will often enough be indiscreet -- sometimes perhaps to the point of making a major mistake -- if they can be put in the right circumstances…."

The Washington Times 9/3/99 Bill Gertz Rowan Scarborough "…The CIA and other U.S. intelligence agencies are engaged in a crash effort to analyze the growing ties between Russia and China. A major intelligence estimate is being drawn up at the request of CIA Director George J. Tenet. The estimate is being prompted by the growing relations between Moscow and Beijing after the two found common ground in opposing NATO's war in the Balkans. The most eye-opening events have been China's acquisition of military hardware and technology from Russia. …."
Associated Press 9/14/99 George Gedda "....The United States has new evidence that China may have transferred medium-range missiles to Pakistan. The discovery raises the possibility of tough sanctions against China and adds a potential complication to a relationship that seemed headed for recovery after a difficult period. State Department spokesman James Foley called the possible transfer of M-11 missiles, with a range of about 250 miles, a matter of ``grave national security importance'' to the United States. A national intelligence estimate concluded that the transfer took place, but Foley said Tuesday that policy and legal determinations have yet to be made. An intelligence judgment is not a sufficient basis for applying technology-transfer sanctions, Foley said. ``It depends to a large extent on the nature of the evidence underlying that judgment, and before the law can be triggered, all the various elements of the missile sanctions law must be satisfied,'' he said..... The penalties would deny high-technology equipment to the Chinese organization involved in the transfer. They also would extend to activities of the Chinese government relating to development of MTCR missiles or MTCR components or affecting production of electronic and space systems or equipment and military aircraft......"

Reuters 9/14/99 Carol Giacomo "....A U.S. intelligence finding that China provided Pakistan with complete M-11 short-range ballistic missiles is insufficient for the U.S. government to conclude that new strict sanctions should be invoked, the State Department said Tuesday. "Such a judgment must be taken into account and will be taken into account as ... we in the U.S. government make the legal determination based on a variety of factors concerning sanctionability," deputy spokesman James Foley said. But an intelligence judgment is not necessarily sufficient basis for imposing sanctions under U.S. law, he said. "In the M-11 case, we have not reached a conclusion that the requirements for a category one finding of sanctionability have been met," he told a news briefing. Foley was reacting to a a new U.S. intelligence report which states publicly for the first time that Pakistan received M-11 short-range ballistic missiles from China. The finding raises once again the question of whether U.S. law warrants imposing tougher sanctions against Beijing. It reflects the consensus of the U.S. intelligence community, including the State Department's own intelligence bureau, and revives a long-simmering dispute between intelligence analysts and policymakers....."

USA Today 9/15/99 Edward Pound ".....A panel of security and intelligence experts, painting a bleak picture, says the Department of Defense (DOD) cannot "quickly dig its way out" of a deep hole -- a backlog of security background investigations that may total 700,000 people. The Joint Security Commission, a 17-member panel headed by retired Air Force chief of staff Larry Welch, says in a report that the backlog of cases involving applicants for security clearances is growing daily and that the Pentagon is ill equipped to handle the job. "Even if funding were no issue," the report says, "it would take several years to provide the needed added investigators and to work through the backlog." It says the Pentagon must focus on its most important cases and allocate more resources to the background program...."

Koenigs International News/Fin Tel-New Zealand 9/3/99 "....A south Auckland chicken farmer says he is mistakenly receiving important security messages relating to next week's APEC conference. Ain't nobody here but us chickens... Saji Phillips says faxes sent to his poultry factory in Mangere have included information about the installation of White House communications equipment at Auckland Airport, code names and security numbers of US military personnel. He has also received details of next week's top-secret arrival of President Bill Clinton...."

BBC Worldwide Monitoring 9/9/99 Segodnya', Moscow "...Excerpts from report by the Russian newspaper 'Segodnya' on 8th September Vladimir Shchurov, head of the Far East department of the Russian Academy of Sciences Institute of Oceanography ocean acoustics laboratory, is suspected by the Federal Security Service FSS of supplying China with dual-purpose technologies . The scientist was first arrested on 1st September at customs while attempting to export an acoustical instrument to the People's Republic of China. This instrument, several representatives of the Maritime Territory FSS administration claim, can identify on the basis of acoustics even the noiseless Russian submarines which have been a considerable headache to NATO sound technicians. And five days later, on 6th September, customs officials searched Shchurov's laboratory and removed computers and diskettes containing information. Now the worst-case scenario could involve criminal proceedings being brought against Vladimir Shchurov under article 189, which stipulates punishment for the illegal export of dual-purpose technologies. If the scientist's culpability is proved he faces at least a fine and at most several years in prison. The scientist himself is inclined to suspect that in the conflict that has arisen the Russian special services are in fact working in the interests of his foreign competitors. "I would rather not say this, but our science is in a lamentable state," Vladimir Shchurov told your 'Segodnya' correspondent. "We are the only laboratory left in Russia to be using unique Russian technology. And there are no consumers of our scientific output in Russia. And the contract with China enabled us to continue research, to supply new equipment for the laboratory, and to attract promising young specialists. We have achieved colossal results. I believe that all our problems have arisen now because they are trying to drive us out of the world scientific market."....."

Washington Post 9/11/99 Vernon Loeb "....A naturalized U.S. citizen from Belarus and his Russian partner were charged yesterday in Chicago with attempting to purchase and smuggle sensitive U.S.-made avionics to an unidentified customer in Russia. The avionics, used to warn fighter pilots that their aircraft have been illuminated by enemy radar, are manufactured by an American company and approved for export only to Japan and Taiwan, prompting U.S. officials to speculate that the ultimate buyer in the scheme may have been China. There's no concrete evidence, but based on everything we've seen, the Chinese government is the ultimate buyer here," said Pat Jones, a Customs Service spokesman in Washington. Peter M. Leitner, a senior strategic trade adviser at the Defense Threat Reduction Agency, said Russian buyers of avionics made specifically for Japan and Taiwan "suggests they've got either a Chinese or a North Korean customer. That's pretty clear, and that's pretty disturbing." Neither Japan nor Taiwan, Leitner said, "poses a threat to Russia." ....."

AP 9/19/99 "….Despite finding marked improvements in security at the government's three nuclear weapons labs, investigators still were able to penetrate some sensitive areas of the labs' computer systems, according to a top-level Energy Department review. However, a team of security experts was unable to penetrate the top-secret computer network used for nuclear weapon design during the intense security review conducted over the summer. But one official said at two of the labs Sandia and Lawrence Livermore the security specialists were able obtain from the outside ''sensitive'' though not secret information on unclassified computer systems ''without a whole lot of difficulty.'' …..The security review at the Los Alamos lab in New Mexico was conducted in two stages in August, officials said. It found the lab had beefed up computer security, improved protection of classified material, improved accountability of nuclear materials, added additional guards and put in additional alarm sensors. More important, said a veteran DOE security official familiar with the review, there was ''a marked change in attitude'' about security among Los Alamos scientists and managers…."

Washington Post 9/21/99 Walter Pincus "....For more than 20 years, the CIA and Russian intelligence agencies have had a back-channel relationship, much like the one U.S. officials are now using to reduce the number of Russian agents in this country. The secret meetings were held when one side feared the other had wandered "out of bounds" in its clandestine activities, according to a former intelligence official. For example, CIA Director William E. Colby in 1976 directed CIA officials to meet with the KGB to determine whether the Soviet spy agency had any role in the 1975 assassination of Richard Welch, the CIA station chief in Athens. At the session in Vienna, the CIA officers present "made it clear we [the agency] won't stand for it," one source said of the session. The senior KGB officer was angered, but the Soviet intelligence service "remembered the representation," the source said. The killing was done by a Cypriot terrorist group. After the 1984 kidnapping of William Buckley, the CIA station chief in Beirut, then-CIA Director William J. Casey ordered a session with the KGB to see whether the Soviets could help uncover what had happened. "There was no evidence they were involved in the case," a source said of the Vienna meeting....."

Washington Post 9/21/99 Walter Pincus "... Three years ago, there was an unexplained increase in the number of Russian intelligence officers operating in this country, according to administration and congressional sources. The increase, which has not abated, reversed the almost 30 percent decline in the number of Russian operatives in the United States that had taken place after the 1991 breakup of the Soviet Union, the sources said. Much of the increase appears to be among Russian military intelligence officers who are engaged in economic espionage. The number of Russian spies in the United States is speculative and closely guarded within the FBI. But sources said recently that when the Cold War ended there were roughly 140 officers of the Soviet KGB (the predecessor agency to Russia's SVR) and GRU (military intelligence) operating primarily out of the Soviet Embassy and military attache offices in Washington, Moscow's consulate in San Francisco, the Russian mission at the United Nations in New York, the U.N. staff and various trade missions...."

Rocky Mountain News (Denver) 9/17/99 Dick Foster "... Air Force units that have guarded air and space against enemy attacks now will guard the newest battleground - cyberspace. Beginning Oct. 1, the U.S. Space Command here will take on the added role of protecting sensitive Department of Defense computer systems from anyone trying to enter and alter information. The threat is real, military officials say. ''We're seeing it every day,'' said Space Command spokesman Maj. Perry Nouis..... The most crucial Defense Department operations are inaccessible to such hacking, military officials insist. NORAD, which monitors the world for air and missile attacks on the United States or Canada, is fully protected by dedicated phone and data lines to radar tracking stations and other monitoring posts around the world. The closed circuits link NORAD at one end with remote stations on the other and cannot be broken by hackers, defense experts say. The same is true for encripted signals from military satellites that feed weather, communications, surveillance and intelligence to Schriever Air Force Base east of Colorado Springs. ''There are a lot of levels to break before anybody could have access to it, so we're confident our systems are secure and will remain secure for the foreseeable future,'' said Nouis More vulnerable, however, are day-to-day computer systems that may exchange operational data such as locating personnel, resupplying or moving troops. These are lower security systems, often interfacing with private contractors performing some function for the military, Nouis said....."

http://www.vny.com/cf/News/upidetail.cfm?QID=113983 UPI 9/23/99 "....Attorney General Janet Reno conceded Thursday that the FBI's investigation into alleged Chinese spying at U. S. nuclear labs has been broadened because of possible new evidence. Reno said the expanded probe is being driven "in response to questions that have been raised. In terms of new evidence, I think there may have been new facts brought to the attention of the FBI." She declined to give details...."

Reuters 9/22/99 "....The FBI will conduct a broader investigation of allegations of Chinese espionage at U.S. nuclear weapons laboratories after officials decided the initial probe was too narrowly focused, a government official said Wednesday. U.S. Attorney General Janet Reno and FBI Director Louis Freeh agreed to add more resources and conduct a wider investigation that had so far focused on Wen Ho Lee, a physicist who was fired from Los Alamos National Laboratory in March for security violations, the official who spoke on condition of anonymity said....."

http://www.newsday.com/ap/rnmpwh17.htm AP 9/22/99 H Josef Hebert "...Responding to months of uproar over allegations of Chinese espionage, Congress today overwhelmingly agreed to create a new nuclear weapons agency in the most dramatic reorganization of the Energy Department in 22 years. The reorganization was included in a widely popular $288.9 billion defense bill that includes a military pay raise and a 4.4 percent across-the-board increase in Pentagon spending, including more money for military housing and hardware. The Senate approved the defense measure 93-5, following House approval of the bill last week by a likewise veto-proof 375-45 vote. The administration has indicated a possible veto because of concerns about the nuclear weapons agency, but lawmakers said a veto would be politically difficult given the defense bill's overwhelming bipartisan support. While some Democrats voiced concern about the new weapons agency within the Energy Department, they said the defense measure was too important to have it sidetracked on the reorganization issue. Although the new agency will not be totally independent, the legislation insulates the department's nuclear weapons programs and consolidate authority over the government's three nuclear weapons labs. The reorganization marks the most far reaching fallout yet to months of controversy about lax security at the Energy Department and the alleged theft by China of nuclear warhead secrets from U.S. weapons labs, dating back 20 years. Supporters of the measure say the new National Nuclear Security Administration within the department would streamline control over nuclear weapons programs and provide increased accountability for security and counterintelligence efforts....."

AFP 9/24/99 "….The Federal Bureau of Investigation is studying "new things" in the allegations of Chinese theft of US nuclear secrets, Republican Senator Orrin Hatch said Friday. Hatch spoke to reporters as he left a meeting with Attorney General Janet Reno and FBI director Louis Freeh. "They indicated there are some new things that they were looking into," said the Utah senator. But Hatch, who chairs the Senate's Judiciary Committee, refused to reveal what new items the FBI was looking at. On Wednesday the FBI said it was expanding its investigation into allegations of Chinese spying on American nuclear laboratories. According to reports, FBI investigators were ordered to widen their probe after the Justice Department and FBI director Louis Freeh determined that the scope of their investigation was too narrow. Asked by reporters what justified expanding the investigation, Hatch said he had no details. "I haven't heard any adequate explanation to this day ... except that Director Freeh said that he felt that they needed to do what they were doing," he said. Reno said Thursday that she thought there might be new evidence in the case. "I think there may have been new facts brought to the attention of the FBI," she said….."

LA Times 9/24/99 Tyler Marshall "….Most knew him as a Democratic Party activist who was deeply involved in California politics during the Jimmy Carter years…… But according to meticulous records kept by a former Soviet KGB official who fled to the West in 1992, he was a spy and his detailed reports were forwarded to Moscow's senior leaders. Although Western intelligence officials said they believe there is little reason to doubt the account--one of thousands of details contained in documents spirited out of Russia by KGB archivist Vasili Mitrokhin--the identity of the California-based spy remains unknown, at least to the public…."

SNAP News AP 9/23/99 "….After focusing for nearly four years on a scientist at the Los Alamos nuclear weapons lab, the government is broadening its investigation into the alleged Chinese theft of secrets concerning a sophisticated nuclear warhead. Justice Department and FBI officials briefed members of the Senate Intelligence Committee on Wednesday about the latest developments involving the Chinese espionage case…….Leahy and Judiciary Committee Chairman Orrin Hatch, R-Utah., both said a majority of lawmakers want an expanded and more thorough investigation……. "

Freeper NetValue 9/23/99 adds "…Look to Sandia National Labs. I have reason to believe that we knew in the middle 1980s that espionage was in place, or soon would be, because I was sent there by the DoD to tell them exactly that. The discussion was held with a very senior manager at Sandia Lab. (Name avaialble) The DoD recommended immediate start of a polygraph program of foreign personnel on-site and all employees traveling overseas....not the so-called "life-style" polygraph questions, but a limited set focused directly upon espionage activities, e.g., hidden foreign contacts, divulgence of classified information to foreigners, acceptance of money, removal of classified information, etc. Following this visit, considerable improvement in the security program was initiated especially in physical security and computer security....but polygraph was just too strongly resisted by the academics who ran the Lab….."

PR Newswire 9/23/99 American Investigator "…Gen. Singlaub recalls a conversation with the late Admiral Boorda, then President Clinton's Chief of Naval Operations, in which he asked, "Is there someone in the Navy who thinks that modernizing and improving the capabilities of the Chinese communist navy is in the best interest of our forces?" The admiral responded "Well General, I used to feel that way too, but this is what the boss wants now, so this is what we're doing." Nicholas Eftimiades, a Sinologist and author of the book Chinese Intelligence Operations, explains that he "debriefed individuals specifically slated to come to the United States doing work as scholars in the hard sciences ... who were specifically recruited by Chinese intelligence to steal technology -- individuals trained to communicate clandestinely with the PRC government and come to the United States, paid and trained to lay in wait, if you will, five to ten years before operationally being activated to illegally acquire US technology." ….."

newmax.com 9/24/99 Col Stanislav Lunev "….There are many strange aspects to American-Russian relations. Like the enabler of an addicted friend, the US will once again provide Russia with another money fix. No matter that prior US credit, loans, and other funds vanished before our eyes to mysteriously reappear in Western banks in the private accounts of so-called new Russians. As approved by the International Monetary Fund this present loan of $4.5 billion will come by way of credits from the World Bank, the European Bank for Reconstruction and Development, and other Western financial institutions. And this latest score by Russia will likely vanish just as quickly. But while being showered with billions from the US taxpayer, the Russian Federation (RF) continues to intensify its intelligence operations against the US as well as against US friends and allies. This espionage activity, according to some US officials, has already reached Cold War levels. The Russian spy business has become so aggressive that last spring, for the first time since the collapse of the USSR, US officials had to expel a Russian intelligence officer who was working undercover at the United Nations and engaged in accessing classified US documents. It was the second incident of Russian spying to surface in six months. In the first incident a Russian officer, though not officially expelled, was denied re-entry to the US while away on vacation……"

Government Executive Magazine/National Journal's Technology Daily 10/7/99 Drew Clark "..... In a report and testimony presented to a Senate Judiciary subcommittee on Wednesday, Jack Brock, director of government and defense information systems for the GAO, said that his agency was able to obtain sensitive, but not classified information, by breaking into NASA's computers in a security test. "The last thing I want to see is a headline saying that 'GAO brings down critical system'," Brock said in response to a question from Sen. John Kyl, R-AZ, chairman of the Technology, Terrorism, and Government Information Subcommittee of the Judiciary Committee. general found that 22 of the largest federal agencies-including Departments of Defense, Agriculture and Veterans Affairs-have significant computer security holes, Brock said. Poor information security management procedures were to the blame for most of the problems, he said. ...."

AP 9/28/99 "....A 21-year FBI veteran with a background in counterintelligence will head the task force conducting the bureau's newly broadened investigation into the alleged Chinese theft of secrets about a sophisticated nuclear warhead. The FBI announced Tuesday that Stephen W. Dillard, currently head of its Jackson, Miss., office, has been selected as inspector in charge of the task force. The bureau said it is still deciding how many agents should be assigned to the probe of whether data about the miniature W-88 warhead and other weapons was taken from U.S. nuclear laboratories. Dillard, who has a law degree from Mississippi College School of Law, has served in the FBI's national security division at headquarters where he managed all foreign counterintelligence and counterespionage operations as chief of the global section. He also has served as assistant chief of the counterterrorism section, unit chief of the Russian section and unit chief of the counterterrorism section of that division......Attorney General Janet Reno said the expansion ``is in response to questions that have been raised in terms of new evidence. I think there may have been new facts brought to the attention of the FBI.'' ...... "

Capitol Hill Blue 9/28/99 "....Justice officials are quietly gloating that the FBI's being forced to return to square one on the investigation into alleged Chinese espionage at U.S. nuclear labs. They feel it proves that they were right all along when they kept telling the bureau they didn't have enough to proceed with a secret surveillance warrant on Wen Ho Lee. But if the FBI was able to diss Justice all over Capitol Hill, they weren't able to fool former Sen. Warren Rudman and his inquiry, which you may recall raised substantial questions about whether the FBI (and the Energy Department) had focused too early on Lee to the exclusion of other possibilities...... '

Reuters 10/3/99 "....Computer networks used by government and business are increasingly at risk of severe disruption, and the federal government is not doing enough about the threat, congressional investigators said in a report to be made public Monday. Security shortcomings jeopardize national defense, tax collection, law enforcement and air traffic control among other key operations, the non-partisan General Accounting Office said in a draft obtained by Reuters. ``At the federal level, these risks are not being adequately addressed,'' said the GAO, the investigative and audit arm of Congress. The report was prepared for Robert Bennett, the Utah Republican who heads the Senate Special Committee on the Year 2000 Technology Problem. The number of security incidents handled by Carnegie Mellon University's CERT Coordination Center, a federally funded emergency response team, has risen from 1,334 in 1993 to 4,398 during the first half of this year, the report said......"

The New Zealand Herald 9/28/99 Eugene Bingham "....Tsunami experts believe a bomb secretly tested off the coast of Auckland 50 years ago could be developed to devastating effect. University of Waikato researchers believe a modern approach to the wartime idea tested off Whangaparaoa could produce waves up to 30m high. Dr Willem de Lange, of the Department of Earth Sciences, said studies proved that while a single explosion was not necessarily effective, a series of explosions could have a significant impact. "It's a bit like sliding backwards and forwards in a bath - the waves grow higher," Dr de Lange said yesterday. ....... "

BQ's View...With Radio America's Blanquita Cullum 8/26/99 Freeper Stand Watch Listen "....The Clinton Administration traded highly-sensitive U.S. technology to the Communist Chinese for money, lots of it, and the U.S. public still doesn't know the whole story ... Even those aware of this dubious arrangement will be surprised by the amount of money involved ... We originally heard a figure in the vicinity of $300,000, but reporter Ken Timmerman asserts that China's illicit transfers to the U.S. during the Clinton era have topped $90 million ...... Chinese nationals have been coming to the U.S., making donations to Clinton and the Democrats, and then going back ... Dan Burton (R-Ind.) has been trying to depose the State Department's Charles Parish, a senior officer at the U.S. consulate in Beijing, who apparently has given visas to these people in exchange for cash and prostitutes ... Clinton has refused to give the names of the front companies that are operating in the U.S. on behalf of the People's Liberation Army (PLA) ... ... The influence of these front companies is spreading to Wall Street, where they're floating stock and bond issues ... They're going to get into your retirement portfolio without you knowing it ... This is an item of major concern ... The Arkansas Teachers and California Retirement System have them ... ... Some of these front companies might look good from a distance, but the problem is that all of them are controlled by Chinese Military Intelligence, which will manipulate the companies, manipulate the stock prices, clear a big profit and then let the companies fail ... We've seen this happen time and time again with so-called blue chips in Hong Kong, and that could happen in U.S. markets ... A key player in this strategy is an Internet company, China.com ... ... The $92 million was transferred between 1994 and 1996 to the Far East National Bank in Los Angeles ... "

BQ's View...With Radio America's Blanquita Cullum 8/26/99 Freeper Stand Watch Listen "....What we have here is just an awful lot more money coming into the U.S. economy and political pockets than we thought before ... The Treasury Department was blocked by Clinton, and the report has been classified ... Timmerman has not been able to gain access through the Freedom of Information Act, and the White House won't deliver it to Congress ... That's disgraceful ... It's amazing to me the total disregard for the rule of law by the Clinton Administration ..... $92 million is a lot, but we don't know how much actually made it into the coffers of the Democratic National Committee (DNC) ... And whose pockets it went into ... .. Timmerman has identified links to what is known as the China Plan, attempts to buy political influence in the U.S. ... The FBI and Justice Department knew about it, and they've advised Congress, but what has been revealed to us is only the tip of the iceberg ... ... The truth also is being uncovered and reported from within the U.S. government, despite White House bullying, by people who believe that they have sworn an oath of allegiance to the nation and not to a particular political party or administration ... They have seen things being done wrong ... They've seen lies ... They've seen investigations quashed ... And they have tried to provide information at great risk to themselves and their careers ... This is good news that these kinds of people are still in government ..."

BQ's View...With Radio America's Blanquita Cullum 8/26/99 Freeper Stand Watch Listen "....An effort of this type has led to a witch hunt orchestrated by the White House at the Defense Technology Security Administration ... Clinton has attempted to end the careers of persons who have come forth with information ... One of those under attack said his political superiors had tried to delete files that would have prohibited the approval of high technology exports to China ... The person filed reports saying the U.S. should not approve the export of a super computer that is going to damage our security ... And his superiors deleted the files ... That's terrible ... ... The web in intrigue seems endless ... Chung said he did not know where the general was getting the money ... As it turns out, Chinese Intelligence controls the largest so-called private security firm in China, JNA Securities ... It is the company that, in the end, transferred the money to Chung ... Timmerman said he investigated this web of front money set up by Chinese Military Intelligence and JNA Securities ... They used Citibank in Hong Kong and a variety of banks on the U.S. West Coast ... They funneled lots and lots of money into the U.S. ... And we've only touched the surface of this investigation ... "

The Straits Times 10/3/99 AFP "...Hongkong billionaire Li Ka Shing and Macau casino magnate Stanley Ho were among a number of Asian tycoons who were investigated secretly by Canada's spy agency, a newspaper here said. The Canadian Security Intelligence Service (CSIS) probe, called Project Sidewinder, looked at a number of Hongkong and Macau companies to see if they were covers for Beijing-backed Chinese espionage into Canada, the Province newspaper reported. Project Sidewinder was started in 1994 and lasted for two years. No charges were laid and the probe was stopped after allegations of political influence were deemed to be unfounded. The probe also focused on alleged contributions from Chinese tycoons to political parties in Canada and any possible influence that might have had on lawmakers. But sources told the newspaper the project was halted abruptly because of "political influence".....Secret papers obtained by the newspaper showed that Chinese with strong links to Beijing collectively owned more land, commercial properties and hotels in Canada than Canadian-born businessmen....."

http://www.softwar.net/plaafaa.html VIA Worldnet Daily 9/27/99 "....Newly declassified documents from the Clinton administration reveal that a civil airline modernization program for China was actually a program to train and equip the People's Liberation Army Air Force (PLAAF). The new documents, forced from the Federal Aviation Administration (FAA) by the Freedom of Information Act (FOIA), are official USAF, Commerce and FAA reports on Chinese military contacts. According to the documents, PLAAF officers toured Edwards Air Force Base in May 1999 for military purposes. The PLAAF officers were given training on USAF combat missions, including "bombing and strafing" and "combat readiness." In 1994, then Secretary of Defense William Perry began a "Joint Defense" conversion project with Chinese General Ding Henggao. General Ding was the commander of the Chinese Army Unit "COSTIND" (Commission on Science, Technology and Industry for National Defense). One part of the U.S./China project was to modernize the communist civil "Air Traffic Control" (ATC) system. ...."

http://www.softwar.net/plaafaa.html VIA Worldnet Daily 9/27/99 "....The documented meetings shows that the Clinton administration attempted to conceal the military background of the Chinese representatives from everyone, including FAA officials. In 1993, a Chinese military delegation visited America. Yet, according the FAA, which sponsored the visit, the entire delegation was civilian. The 1993 FAA delegation list includes a "Mr. Kui Fulin" who toured FAA Headquarters in Washington, Andrews AFB in Maryland, and Boeing aircraft Corporation in Washington state. "Mr. Kui Fulin" was actually General Kui Fulin, Chinese Army Deputy Chief of the General Staff. The 1993 FAA list states "Mr. Li Yongtai" was the Commissioner of the Air Traffic Control Commission of China. According to hand written notes taken by the FAA, Mr. Li Yongtai was actually "Lt. General" Li Yongtai of the Chinese Air Force. In fact, FAA officials who attending the meeting wrote "military" next to the names of seven members of the 1993 "China Air Traffic Control" delegation in an apparent effort to track the Chinese Army officers. Another example shows that a "Mr. Li Zhongli" was part of a Chinese civilian delegation visit in 1997 to San Francisco that was sponsored by Stanford University. "Mr. Li Zhongli" was actually Colonel Li Zhongli of the PLAAF. ...."

http://www.softwar.net/plaafaa.html VIA Worldnet Daily 9/27/99 "....In 1999, the Clinton administration offered the PLAAF the latest in advanced "mobile radars", command and control systems, GPS navigation, and "Surveillance Avionics" such as "Air to Air", "Air to Ground" and "surface Area Movement" surveillance radars. According to a U.S. Air Force May 1999 report, the PLAAF was given details on USAF "Special Airspace" areas inside America used for military training, research and national security zones. The details include Edwards Air Force base and a mapped tour of the facility. Edwards AFB is a test center for USAF, and NASA research aircraft, including the space shuttle. The newly released materials also include training manuals from the USAF 334th Training Squadron in both english and Chinese. The documents show Clinton administration officials proposed to train PLAAF military air controllers......"

http://www.softwar.net/plaafaa.html VIA Worldnet Daily 9/27/99 "....In 1999, Softwar obtained the full bio, in Chinese and English, of COSTIND Lt. General Huai after winning a Freedom of Information lawsuit against the Commerce Dept. The official White House spin is that COSTIND was not a Chinese military unit but a "civilian" agency. According to a November, 1997 report, written for the Commerce Dept. by "think-tank" company SAIC, COSTIND was neither civilian nor engaged in purely commercial activities: "COSTIND supervises virtually all of China's military research, development and production. It is a military organization, staffed largely by active duty officers... COSTIND also coordinates certain activities with the China National Nuclear Corporation (CNNC), which produces, stores, and controls all fissile material for civilian as well as military applications. COSTIND approves licenses for the use of nuclear materials for military purposes."

Reuters UPI 10/12/99 Tabassum Sakaria ".....The chairman of the Senate Intelligence Committee, after a CIA briefing on Tuesday, said he still questioned the quality of evidence that led to the U.S. bombing of a pharmaceutical company in Sudan last year and the timing of the attack. "We had a closed hearing on the Al-Shifa situation today," Senate Intelligence Committee Chairman Richard Shelby said, referring to the name of the pharmaceutical firm in Sudan. "I'm still troubled by the timing of the response by the U.S. and I'm also concerned still about the standard of the evidence used," he said after the closed-door briefing by CIA Director George Tenet......."

BQ's view...With Radio America's Blanquita Cullum 10/7/99 "........ This China thing is going to break big-time ... Watching the President slight the FBI is going to anger some of the rank-and-file FBI agents who are seeing their reputation ruined while they're taking the heat ... Are we going to see, before this president leaves office, FBI agents and others come forward and really become whistle-blowers? ... Sperry thinks we already are with these four ... Sperry said he pointed out to Clinton that one of the agents had been with the FBI 24 years, and another 14 years ... There are four of them, and they swore under oath ... Is the President saying that they're lying? ... You have the four agents saying that Janet Reno's lawyers, most of whom are political appointees, blocked the agents from doing their job ... FBI agents investigating Wen Ho Lee in the Chinese espionage case said the same thing ... So here you have two investigations involving China, and both of them blocked for some reason by the Justice Department ... ... This is really starting to smell rotten ... Sperry doesn't know if anyone in the daily media is starting to smell it ... But you'd think they would by now ... Leave raw hamburger meat out too long, and this is bound to happen ... "

Colorado Springs Gazette 10/12/99 "....One hardly knows whether to view the news that the Central Intelligence Agency is trying to adjust to Internet speed and catch up with new technology by forming a venture capital company as mildly hopeful, potentially catastrophic or just plain bizarre. Even if the move demonstrates an awareness that the bureaucratic ways of government simply won't do in today's high-tech environment, however, it ignores the more fundamental problem that the CIA is still, 10 years after the Cold War ended, an agency in search of a mission. The new nonprofit "firm" financed with $28 million of the taxpayers' money does come with a welcome sense of humor. It is to be named In-Q-It, a tip of the hat to the fictional gadget-master "Q" in the James Bond novels. It is headed by Gilman Louie, 39, a well-known figure in the software world since creating his first computer-gaming company while a student at San Francisco State in the early 1980s. He developed the Falcon air-combat simulator video game and just sold his most recent venture, Microprose, to Hasbro. CIA spokesman Bill Harlow says the project "grew out of the recognition here of a need to find new ways to harness the capabilities of the private sector to deal with some of the more difficult problems of information technology." Or, as Louie put it, "The technology world has totally changed, and one day the CIA woke up and realized they needed to go through the same change." ....."

CNN 10/14/99 Pierre Thomas ".....Investigators looking into the activities of a nuclear scientist linked to allegations of Chinese espionage have been unable to account for copies of top- secret computer files containing secret U.S. nuclear codes, CNN has learned. Earlier this year, the FBI discovered that Wen Ho Lee, a scientist at the Los Alamos nuclear weapons lab in New Mexico, transferred sensitive nuclear codes, called "legacy codes," from a secure computer to a non-secure computer. Law enforcement sources say they have determined that at some point, Lee copied the codes on tape. CNN has learned that investigators have asked Lee to produce the tapes, but he has yet to do so. ...."

Intelligence Newsletter 10/7/99 ".....American claims that the bombing of the Chinese embassy in Belgrade on May 7 by US Air Force fighters was accidental appear to be contradicted by fresh elements..... But according to several Intelligence Newsletter sources in Washington this explanation was trotted out to cover up for others responsible for the fiasco, and particularly the NSA which is said to have made a mistake in analyzing electronic signals emitted on May 7 by the Chinese embassy. According to several experts, American pilots taking part in the attack may not have locked their missiles in on the Chinese embassy as such but rather on communications being transmitted from it. Indeed, it appears that a number of targets were chosen in keeping with electronic signals emanating from highly secret military transmitters. The theory is that by May 7 much of Yugoslavia's command, control and communications infrastructure had been knocked out by incessant NATO pounding. The Yugoslavs, who had cultivated special relations with the Chinese authorities, asked the embassy to allow the Yugoslav military to install part of its radio system on the premises, deemed to be safe from attack..... Several elements that have emerged in recent weeks tend to back up this theory. According to a Chinese diplomat on post in Europe who was contacted by Intelligence Newsletter, several American officers were received a number of times in the reception room of the Chinese embassy in the month before the NATO air campaign against Yugoslavia began. This information rather disproves claims that neither NIMA, DIA or the CIA had been informed of the change in the embassy's location. In addition, two Chinese "journalists" killed in the bombing, Shao Yunghuan and Xu Zinghu, were revealed subsequently to be agents of the Chinese foreign intelligence service. Their presence in the embassy would seem to indicate the premises weren't used for strictly diplomatic activity. ....."

Washington Post 10/11/99 Walter Pincus "....When China tested its new DF-31 mobile missile last month, CIA and Pentagon experts already knew a great deal about the rocket and its proposed warhead, thanks in part to the same exchanges of nuclear scientists and Chinese launches of U.S.-built satellites that have come under recent sharp congressional criticism. While a furor has arisen over Chinese spying on the United States, the federal government has been silent about the other side of the coin--what U.S. intelligence agencies have learned during visits by Chinese scientists to U.S. weapons laboratories and trips by U.S. scientists to China's nuclear research facilities. "We got more out of those Chinese visits than they got," said Richard Kerr, a former deputy director of the CIA who served this year on an intelligence community panel that reviewed allegations of Chinese espionage at America's nuclear labs. At the beginning of the 1980s, the United States knew little about China's nuclear weapons and missiles. Years of exchanges involving hundreds of scientists from both countries have gradually filled in some of the blanks, according to Kerr and other experts. ....."

UPI 10/10/99 ".... Former CIA Director R. James Woolsey, who left the agency in 1995, said at an intelligence symposium this weekend that the Clinton administration has allowed U.S. espionage to deteriorate. Speaking at a two-day Trinity University conference in San Antonio -"Doubled-Edged Secrets: Six Decades of Intelligence in the Pacific" -Woolsey said the nation's spy skills are deteriorating to the level of the 1920s-1930s, when secretaries of state were said to believe that gentleman didn't read other people's mail. Woolsey, a career Pentagon officer and arms-reduction negotiator, was appointed CIA director by President Bill Clinton in 1993 and served two years. Warning that the international situation is more volatile than anytime since World War II, Woolsey said Saturday, "It's not fair to blame statesmen of (the pre-World War II) era for not being clairvoyant because they didn't see Germany and Japan coming. Those problems were clouds on the horizon, not thunderstorms overhead. But it is fair to blame them for not being careful, and what they did bears an interesting resemblance to what we're doing today in the comfortable, relaxed 1990s."...."

The Washington Times 10/13/99 Bill Gertz "....China's theft of U.S. nuclear weapons testing data will help Beijing if it decides to violate the Comprehensive Test Ban Treaty, according to the chairman of a special House committee on China. Rep. Christopher Cox, California Republican, stated in a letter to Senate Majority Leader Trent Lott that the select committee he headed on Chinese espionage and technology acquisition found that stolen U.S. nuclear testing secrets helped China develop small warheads. "The select committee found that the PRC has acquired classified information about nuclear testing using miniaturized fusion explosions," Mr. Cox stated. "This inertial confinement technique would be of special usefulness to the PRC should it choose to violate the Comprehensive Test Ban Treaty." The chairman of the Select Committee on U.S. National Security and Military-Commercial Concerns With the People's Republic of China, as the panel is known formally, also stated that China "could further accelerate its nuclear development by violating the Comprehensive Test Ban Treaty and testing surreptitiously." U.S. intelligence agencies believe China conducted a small nuclear test on June 12 as part of its efforts to build smaller warheads...... Mr. Cox said the Chinese may be able to reduce their need for further nuclear testing by relying on stolen U.S. nuclear testing data. "The select committee found that the People's Republic of China continues to target U.S. nuclear test codes, computer models and data at our national weapons laboratories; that it can use high-performance computers to diminish the need for further nuclear testing to evaluate its own weapons and its nuclear stockpile; and that if the PRC is successful in obtaining testing information from the U.S. or other countries, it will be in a better position to develop and deploy more modern nuclear weapons without additional testing," Mr. Cox stated. "Thus, the relative technological advantages the United States enjoys by virtue of our extensive testing [in the past] may be lost as a result of our adherence to the Comprehensive Test Ban Treaty regime in such circumstances," he said. If China successfully obtained U.S. nuclear weapons computer codes it will be able to develop missile defenses against U.S. strategic missiles, Mr. Cox said. ...."

INSIGHT J Michael Waller 10/16/99 "…..The Bank of New York money-laundering scandal is snowballing. More revelations by newly retired officials, criminal investigations from Moscow to Switzerland to London to Manhattan, a set of congressional hearings and a revisiting of old press reports show an emerging pattern: From its first days in office more than six years ago, the Clinton administration systematically tried to suppress the truth about the sorry progress of reform in Russia. ….. . . California Republican Rep. Tom Campbell, a longtime and earnest defender of the Clinton administration's Russia policy, sat bug-eyed at an Oct. 6 House International Relations Committee hearing on how the administration ignored warnings and dissent. He was one of the few members who listened to all the expert testimony.. . . . "It's a pattern I've witnessed since Clinton took over," says Rep. Curt Weldon, the Pennsylvania Republican who chairs the House Armed Services subcommittee on Military Research and Development, to which government whistle-blowers have gone with their stories.. . . . Weldon and some of his colleagues have found a pattern -- not only in economics, corruption and organized crime, as recent public events have emphasized, but across the board: human rights, weapons proliferation, strategic-weapons modernization, arms control and agriculture. The pattern shows that the administration ignored intelligence reports, disregarded cables from diplomats in the field, pressured diplomats and intelligence analysts into not reporting developments that conflicted with government policy, destroyed the careers of public servants who bucked political pressure by doing their job and misled Congress and the public. . . . ."

INSIGHT J Michael Waller 10/16/99 "…..Top Clinton officials knew the scope of government corruption in Russia from their earliest days in office. Clinton's first CIA director, R. James Woolsey, recently told the House Banking and Financial Services Committee that in 1993 "some very able CIA analysts came to me with an excellent briefing on some aspects of Russian organized crime. I moved promptly to ensure that very senior officials at the Justice Department, the FBI, the National Security Council and other relevant agencies received this briefing. In several of these cases -- I remember briefings at Justice and the NSC -- I personally attended in order to highlight the importance of the subject and to emphasize the excellence and the creativity of the CIA officers' work. I then commissioned a special National Intelligence Estimate on Russian Organized Crime.". . . . Woolsey added that he "put this issue on the agenda at some of the intelligence community's most sensitive meetings on intelligence matters with some of our closest allies and ensured that at a very senior level they were appropriately briefed as well." Through these efforts, he told lawmakers, "the U.S. intelligence community and the CIA in particular performed a valuable service in putting this issue squarely before those in the U.S. government and in allied governments who needed to know about it in order to take appropriate action.". . . . But no action came…."

INSIGHT J Michael Waller 10/16/99 "…..Talbott had his chance to answer the next day. Committee Chairman Jesse Helms of North Carolina asked questions concerning whether Talbott knew about intelligence reporting on corruption, but Talbott refused to answer. Helms dismissed him, barely concealing his disgust.

INSIGHT J Michael Waller 10/16/99 "….. In an Oct. 6-7 hearing on U.S. policy toward Russia at which this writer testified as an expert witness, House International Relations Committee Chairman Benjamin Gilman of New York devoted the first day to assess the Clinton administration's "treatment of criticisms, dissent or warnings." The first witness, David Swartz, who was the first U.S. ambassador to the former Soviet republic of Belarus, testified that he warned of dangers in Clinton's new Russia-centered approach to the region. "I repeatedly warned in cables and policy analyses from Minsk of the dangers of a Russocentrist approach," he said. "It was my view then and continues to be that fundamental U.S. interests lie in a permanent fragmentation of the former Soviet empire. I was ignored by Talbott." . . . . After a 26-year career as a foreign-service officer, Swartz resigned in protest in 1994. Today, Belarus is a dictatorship on the path to being reabsorbed by Russia….."

INSIGHT J Michael Waller 10/16/99 "…... . . "Russian Fission" was the name of a secret Energy Department intelligence program that monitored Russian civilian control of nuclear weapons and fissile material. John B. "Jay" Stewart, a highly decorated military-intelligence officer who directed an intelligence analysis of this program (see sidebar) in 1992, came to the conclusion that the Russian government was losing control over its nuclear arsenal. He briefed top Bush administration officials, as well as NATO Secretary-General Manfred Woerner. "Woerner was so impressed that he sent a cable to Washington, saying this was serious and he wanted all NATO countries briefed on this issue by Jay Stewart," Weldon tells Insight. "Woerner put together an entire intelligence-community workshop for two days in late 1992. Soon, when Clinton came into office, [Energy Secretary] Hazel O'Leary came in. Stewart briefed her personally. Initially, she was still very interested until she realized that exposing security problems was not in sync with administration policy," Weldon says. Soon, according to the congressman, Stewart no longer was allowed to do the briefings, and officials ordered a clerical worker to destroy Russian Fission documents and tapes in Stewart's file. . . . . A DOE political appointee warned Stewart not to discuss the Russian Fission program and, within a month, this intelligence effort was disbanded. "The entire program was set aside. Jay's career was ended. With his distinguished service, he nonetheless was shunted into a corner," says Weldon. "That was the end of the program. Jay, because of simply speaking out, was basically shoved aside." Stewart retired from government in 1994. He would not comment for this article.

INSIGHT J Michael Waller 10/16/99 "…... . . The chief of the CIA's nonproliferation center, Gordon Oehler, met a similar professional fate. His briefings on how Russia helped Iran build its Shahab-3 intercontinental ballistic missile meant the end of his career. Oehler won't talk about his sudden 1997 retirement but, when it happened, Joseph Cirincione of the liberal Henry Stimson Center told the New York Times, "Here's a man operating within the rules, sharing information with Congress and policy experts. And some of the news is uncomfortable and came at a delicate time. But he never pulled his punches because the news was uncomfortable, and apparently this administration didn't like it. I don't know how else to read it.". . . . Former Bush Pentagon official Henry Sokolski of the Nonproliferation Policy Education Center agrees: "The significance of his retirement is great. This man, in an agency known for its bending of truths, was an honest broker. To find integrity in public service is a rare, cherished and precious thing. And when it goes, it brings down morale -- it's got to. Whether his retirement was forced or not I don't know ... but ... that a man of integrity should feel such stress in being shot at for his honesty is an indictment of what we claim to be doing in the name of nonproliferation."

INSIGHT J Michael Waller 10/16/99 "….. . . Others within the system have been silenced -- or would have been had it not been for persistent Pennsylvania congressman Weldon. Dale Darling, an analyst at the Lawrence Livermore nuclear-weapons lab, followed cutting-edge Russian military technologies in a program called "Silver Bullets." The program monitored how Moscow, despite a cutback in its military, was developing exotic next-generation weapons. Weldon, as chairman of the House Armed Services subcommittee on Military Research and Development, called Darling to ask for a briefing in July 1996. But Weldon didn't hear anything from him until, the following month, he received an anonymous letter that said, "I hope you will pursue the briefing with Dale Darling. Dale has been pressured to cancel the briefing."

Washington Post 10/19/99 Walter Pincus "....Senate Republicans may attempt to cut off the salaries of top officials in the Department of Energy if the department undermines the establishment of a separate agency to run nuclear weapons programs, a Senate aide warned yesterday. Energy Secretary Bill Richardson is expected to face sharp questioning today from senators who contend that the Clinton administration is violating the spirit and possibly the letter of a law passed last month that set up the National Nuclear Security Administration (NNSA). Republican legislators, who drafted the measure as a response to allegations that China had stolen nuclear secrets from U.S. weapons laboratories, say they intended to create a "separately organized agency" whose administrator would report to the secretary of energy but would have a high degree of autonomy....... On Oct. 5, President Clinton signed the fiscal 2000 Defense Authorization Act, which set up the agency. But at the same time, he directed Richardson to assume all the duties of the NNSA administrator, who has the title of undersecretary of energy for nuclear security. Richardson also was authorized to assign his top subordinates, such as the directors of security and counterintelligence at the DOE, to serve concurrently in parallel posts at the NNSA...."

Fox News Wire-AP 10/19/99 Robert Burns ".....The Pentagon for the first time is acknowledging Cold War locations of nuclear weapons outside the United States, including naval depth bombs, ready for arming, in Cuba during the 1962 missile crisis with the Soviet Union. The names of nine places where bombs or bomb components minus their nuclear charges were located between 1951 and 1977 are revealed in a 332-page official Pentagon history. The names of 18 other locations were blacked out by government censors before the document was released to Robert S. Norris, a private specialist on nuclear weapons and author of numerous books on the topic. ......"

FBI press release 10/19/99 "...The FBI today issued the following statement to clarify the "USA Today" story titled "FBI: Militias a threat at millennium:" For several years, the FBI has had a program of reaching out to militias and their members to explain the FBI's role in investigating violations of law and to stress open lines of communication with militia groups. This was done also to ensure the militias that there was no intent to deny anyone their constitutional rights nor was there a targeting of any militia groups who were otherwise engaged in legitimate, protected activity. The FBI realizes that the majority of militia members engage in and support law abiding activities. However, the FBI will investigate illegal activities coming within the purview of its investigative responsibilities. In fact, the FBI is fully cognizant of the fact that some militias have taken positive steps towards ridding themselves of violent extremist elements. It is these violent extremist elements that could be violating laws which could subject them to investigations by the FBI. Often, these extreme members will splinter from more established groups and engage in violence autonomously. These elements are often very small cells or lone actors. The contact with militia members has proven effective, in that the more mainstream militia groups have been helpful in identifying the more extremist elements of the militia who may resort to acts of violence......"

WorldNetDaily.com 10/18/99 J R Nyquist ".... Up until 1995 the National Intelligence Estimates produced by the combined effort of America's intelligence organizations -- CIA, NSA, DIA, and military services -- maintained that Russia was a serious nuclear threat to the United States. But President Clinton used political pressure to force the intelligence community into an assessment that conformed to his personal beliefs. On Feb. 28, 1996, the U.S. intelligence community broke down and accepted the "politically correct" dictate of the Clinton White House. NIE 95-19, the most recent National Intelligence Estimate, stated, "With the end of the Cold War, the United States faces a clearly diminished threat of nuclear attack by the missile forces of the former Soviet Union." President Clinton was not interested in an objective analysis of the Russian threat. He wanted the threat to be disregarded. It did not matter to him that many intelligence officers strongly disagreed with NIE 95-19. "Dissent was especially strong among those tracking Russian strategic thinking and nuclear force modernization," says Peter Vincent Pry in his newly released book, "War Scare." "Their more sobering views, which should have been reflected in the main findings of NIE 95-19, were ignored. The document did not allow one dissenting footnote into its easy dismissal of the Russian nuclear threat." ....."

WorldNetDaily.com 10/18/99 J R Nyquist ".... On Sept. 8 U.S. intelligence detected an underground explosion at Novaya Zemlya, a remote Russian military base. Some analysts believe it was a small nuclear test. I asked Peter Vincent Pry about Russian violations of the Comprehensive Test Ban Treaty, which they have repeatedly promised to uphold. Pry replied that there was evidence of Russian violations. There was even an incident in the summer of 1997 which got major press attention. American intelligence detected an "earthquake" in Russia which had a shock wave consistent with that of a nuclear test. The Russians denied the violation, saying it was a natural event. Without further discussion or investigation, the Clinton administration accepted Moscow's assurances...."

WorldNetDaily.com 10/18/99 J R Nyquist ".... Earlier this month the CIA admitted that the Comprehensive Test Ban Treaty was unverifiable. CIA experts explained that low yield nuclear explosions, below the five-kiloton range, could not be distinguished from conventional explosions. Since the Russians have continued to set off low-yield explosions, and since they have denied us an opportunity for on-site inspections, we are forced to take Moscow's word for it. That is why the U.S. Senate decided against the Comprehensive Nuclear Test Ban Treaty.. ."

BQ's View With Radio America's Blanquita Cullum 10/20/99 ".......... What really frightens to me is the Commission's assertion that U.S. Intelligence will be inadequate ... We've seen major flaws hit our intelligence at the CIA, where we now basically have a public relations department ... How do we gain back our intelligence standards? ... The CIA and FBI have been badly damaged by this Administration ... How do we fix it in time? ...... Fowler is worried that the U.S. has very little human intelligence around the globe now ... And as we start dealing with these types of terrorist countries and organizations, that's critically important ... The Senate has seen this report, as well, so support should be coming in from that side ... They share the concerns and probably will be having hearings ... "

The New Australian 10/25/99 James Henry "….Mena is a small out-of-the-way quiet Arkansas town. The CIA considered its location and size would allow it to operate its huge C-123 military transport without any embarrassing questions being asked. That Bill Clinton, the state's governor, was willing to cooperate by turning a blind eye to the gun-running operation was an added advantage. It seems to have never occurred to CIA planners to ask why someone who had demonstrated in support of communist North Vietnam was now only too willing to cooperate with the CIA in arming Nicaragua's anticommunist guerrillas. Lasater turned out to be the answer. Barry Seal was picked to make the runs. It is now no secret that Seal had been a former drug-smuggler who had become a Drug Enforcement Administration operative and a CIA contract employee…… Seal was to make arms drops to the Contra's and then return to Mena. That's when the almost came into it. Far from being reformed character, Seal was once again on the make. Whether out of greed, a sense of adventure or both, he decided to return to his old profession of drug smuggling….."

The New Australian 10/25/99 James Henry "….It is thought that Seal had drug dealings with Lasater way back in the 1970s. With Lasater being a heavy contributor to Clinton's campaign funds and with the latter being a frequent and enthusiastic visitor to Lasater's cocaine parties, the scene was set for another episode in the saga of Clinton's rise to the presidency. Though the circumstances of how the trio of Seal, Lasater and Clinton actually came together on the drug deal are still uncertain, there is no doubt that a deal was struck. Whatever the sequence of events, Seal quickly turned his Contra drops into a money-laundering and drug running operation with Lasater acting as the point of distribution and Clinton providing protection and legitimacy…….Things were to turn horribly wrong for Seal. In February 1984 he was shot down in the street. The police later arrested three Colombians. Once again the situation becomes murky. Was Seal skimming or just getting greedy. Either way, his drug-dealing partners terminated his contract in their usual gangster fashion. Alas, Lasater escaped the ultimate penalty, serving a mere six months for distributing drugs. Clinton, with the full support of the the liberal media, went on to create the most corrupt administration in American history……My contacts, honorable and patriotic men, were outraged at rumors that they had smuggled drugs into the US. They were particularly sickened by the San Jose Mercury News story accusing the CIA of running drugs into LA. As they stressed, "it made no sense at all for the agency to sell drugs". Compared with the CIA's budget of billions, the Contra operation was a penny ante affair, a small-change operation thanks to left-wing Democrats whose political sympathies would have borne some media scrutiny - if the media had been honest, that is. It had not escaped their attention that the mainstream media lost all interest in Mena once it became apparent that the real story was not about guns to Contras but drugs and that the drug trail, like the "blood trail", led not to Langley but to the Governor's mansion……"

 

Washington Post 10/17/99 Michael Dobbs ".....At the height of the Cold War, blurry satellite photos of an obscure nuclear complex in the deserts of Kazakhstan served as a kind of giant Rorschach blot onto which American intelligence analysts projected their worst nightmares........ While the United States and the Soviet Union frequently misread each other's intentions, there are few more striking examples of the twisted consequences of faulty intelligence than the controversy surrounding the Kazakhstan facility, which was given the acronym P-NUTS by American analysts, for Possible Nuclear Underground Test Site. Paranoia about P-NUTS helped stimulate American research in both particle beam and space-based laser weapons, culminating in President Reagan's decision to launch the multibillion-dollar "Star Wars" program in 1983.....Russian scientists who escorted American visitors through the P-NUTS site in 1992 insisted that their goal was merely a nuclear-powered rocket to Mars. They said that the gigantic metal spheres that attracted Keegan's attention were used to store the hydrogen that would propel such a rocket after being heated in a nuclear reactor, a claim consistent with the U.S. intelligence finding of the release of large amounts of hydrogen from the site. Most American scientists now accept the Russian description of the purpose of the Semipalatinsk test site. ...... "

The Reagan Information Interchange 10/25/99 Yoichi Shimatsu, Pacific News Service "….The first crack in the US government's version of the May 7 bombing of the Chinese Embassy in Belgrade came from an agency of the US government. Now, five months later, the official story has crumbled almost entirely -- but you'd never know it from the US media. Less than 10 days after the bombing, the National Imagery and Mapping Agency (NIMA ) -- the Pentagon agency that merges maps with satellite data to create "data maps" for high-altitude B-2 bombers -- posted an extraordinary press release on its web site. "Recent news reports of NIMA maps have been inaccurate or incomplete," it stated…… I phoned the mapping agency headquarters in Baltimore, Maryland. "Were the NIMA maps up to date?" I asked. ….Now, five months later, two newspapers -- the Observerin London, Politikenin Copenhagen -- jointly reported October 17 that several NATO officials and military officers have admitted that U.S. bombing of the Chinese Embassy in Belgrade was deliberate. The reporters also quoted a NIMA source as saying that the "wrong map" story was "a damned lie."…… Observer reporters also quoted a NATO flight control officer in Naples who said the Chinese Embassy appeared on the NATO "no-strike" map at its correct address in New Belgrade, and not at its former address across the river -- as claimed by NATO and the Pentagon….."

United Press International 10/27/99 "….The Times said interviews with many involved in the decision to bomb the Al Shifa plant in retaliation for bin Laden's alleged bombing of U. S. embassies in Kenya and Tanzania questioned whether the evidence the plant made chemical weapons was strong enough. They said, however, that President Clinton's closest aides concluded that the risks of hitting the wrong plant were outweighed by the possibility chemicals weapons were being made at the plant for delivery to terrorists. After the raid, officials told the Times, Secretary of State Madeleine Albright and Undersecretary of State Thomas Pickering persuaded State Department intelligence analysts to kill a report questioning the evidence justifying the attack…."

Newsweek 11/8/99 "….A new CIA report says ex-CIA director John Deutch may have tampered with evidence in an inquiry into his misuse of classified files, sources say. Deutch lost his security clearance in August for transferring CIA files to an unsecured home computer. As the Feds investigated, Deutch tried to erase them. The report also says Deutch had mishandled secret files at the Pentagon in the early '90s. Congressmen, angered that Justice hasn't prosecuted, are now livid. "It's very troubling," says Senate intelligence chair Richard Shelby…..".

The Los Angeles Times 10/31/99 Bob Drogin "....Distant forests dominate the view from the eighth-floor director's suite at the National Security Agency, America's largest intelligence gathering operation. But the talk inside is of a more troubling horizon: cyberspace. "Think of it as a physical domain, like land, sea and air," said Air Force Lt. Gen. Michael V. Hayden in his first interview since taking the NSA's helm in May. "Now think of America conducting operations in that new domain." These days, many in the U.S. intelligence, law enforcement and national security community are thinking of little else. The Pentagon has stepped up cyber-defense and is planning cyber-combat. The FBI is still struggling to unravel Moonlight Maze, a massive assault on U.S. government computers that has been traced to Russia. Prodded by the White House, other agencies are also scrambling to protect America's electronic infrastructure from a daily digital barrage from around the world......"

The Associated Press, via News Plus 10/31/99 Glen Johnson "....A month ago, the Federal Aviation Administration issued an alert to airline and airport security personnel after agencies received an unconfirmed warning that a bomb would ``soon be used'' on a flight departing from Los Angeles or Kennedy airport in New York. Officials said they had no reason to believe the disappearance of an EgyptAir flight on Sunday was caused by sabotage. Investigators were attempting to determine the fate of Flight 990 after takeoff from Kennedy International Airport. The flight originated Saturday in Los Angeles......An FBI official, speaking on condition of anonymity, said the person who made the claim cited in the FAA memo was in prison and that they had no information that the threat was related. The official also said that as of midday no groups had made any terrorist claims involving the crash. The official said law enforcement agencies are reviewing past tips and phone traffic to see if there was a lead that was passed over before and might be relevant after the plane disappeared. .....The alert said the writer said ``three of these devices were smuggled into the United States between 1992 and 1993, and that the devices cannot be detected on a metal detector because of the PVC (plastic) composition.'' ....."

Agence France-Presse 10/29/99 "….The US State Department said Friday it was looking into the seizure by Russia's secret service of a computer and documents from the Moscow apartment of an American nuclear security expert. "We do not know the reason for this event," spokesman James Rubin told reporters, referring to the case of Joshua Handler, a Princeton University specialist in nuclear radiation and security. "We have approached the foreign ministry ... to try to get more details about the case (but) we have no reason to believe that Mr. Handler's movement is being restricted in terms of leaving Russia," Rubin said….."

NewsMax.com 10/28/99 Carl Limbacher "….Bibi Netanyahu, the former Israeli Primie Minister, is currently penning his biography. The bio is said to be laced with acid for Bill and Hillary Clinton. No doubt, with New York's large Jewish vote, Netanyahu's revelations could be a hot topic for the upcoming Senate race. Netanyahu reportedly details how Bill Clinton lied to him and used a classic "bait-and-switch" technique to get him to sign the Wye Peace Accord with PLO leader Yasser Arafat. …. According to Netanyahu, Clinton had agreed to free Pollard and allow him to move to Israel. The deal had been already cut. Netanyahu was preparing for the press conference -- just minutes away -- when Clinton informed him he was not going to release Pollard, as promised. Netanyahu is said to have turned pale. …."

WND 10/28/99 JR Nyquist "….These books present key facts which are almost entirely ignored by the establishment media. In recent columns I have written about the Russian mafia and its relationship to the supposed collapse of Communism. In the last 18 months I have interviewed four East Europeans who tell the same essential story: the Russian mafia is directed by Russian intelligence agents. The first book I am going to review supports the testimony of these East Europeans. In 1990 Clarion House published a book entitled, "Red Cocaine: The Drugging of America." This book was written by Joseph D. Douglass Jr., a national security consultant and former deputy director of the Tactical Technology Office, Advance Research Projects Agency. Douglass has 35 years of experience in national security research and study. He is a serious scholar long recognized for his contributions…… Douglass shows that the U.S. has been penetrated at its most fundamental level. The drug epidemic in this country has been an important mechanism in this process of penetration. As I said before, it took courage for Douglass to document this process. It took courage because there is a natural resistance in the American psyche to the idea of well-organized and systematic subversion by foreign agents. We refuse to believe that public officials and business leaders can be lured by greed and compelled by blackmail. My own mind was unable to grasp the significance of Douglass' book in 1990 when I first read it. Finally, when Clinton was elected in 1992, I went back and studied "Red Cocaine" a second time. But it wasn't until I finished Terry Reed's book on the intelligence-related intrigues of Clinton's Arkansas that I fully appreciated the importance of "Red Cocaine." (Reed's book, co-authored with John Cummings, is entitled, "Compromised: Clinton, Bush and the CIA.") …"

WND 10/28/99 JR Nyquist "….. Today, as never before, there is danger of a nuclear war with Russia. This threat is explained in a new book by former CIA analyst Peter Vincent Pry. Published under the title "War Scare," Pry's book says that the danger of nuclear war is increasing rather than decreasing. Many of us think of the Cuban missile crisis as the moment when Russia and America came closest to exchanging nuclear blows. Not true, says Pry. "Unknown to the general public, and little known to U.S. policy makers, the world has been undergoing an extended crisis," explains the CIA veteran. This crisis is born out of the Russian general staff's view that "nuclear world war may be imminent." Pry is challenging received wisdom, and that is a hazardous thing to do. Having worked at the CIA for 10 years he understands what few others understand. In 1990 Pry wrote a two-volume work on the subject of nuclear war strategy, entitled, "The Strategic Nuclear Balance." Pry's scholarship shows that nuclear war is not only survivable, but winnable. Nuclear weapons are special tools which can be used to disarm an enemy with a lightning blow. The speed which with these weapons function presents a real challenge to America, because an attack can happen in a matter of minutes. Russia is pointing thousands of these weapons at America right now. Pry knows that nuclear weapons can be used in a way that avoids major collateral damage. He knows that these weapons would not destroy the earth. In all of this knowledge he is faced with an uphill battle against the ignorance of his countrymen. Most Americans think nuclear war is crazy. They imagine that nobody would start such a war. According to Pry, most Americans are dead wrong….."

NewsMax 10/29/99 Carl Limbacher "….First of all I want to say thank you for the first time, Chinagate witness Johnny Chung told a packed hall Saturday night at the Pasadena Hilton [Judicial Watch]. "Everytime I mean to do it but everytime on TV they always edit. So tonight is the night I can say it without edit."….. "I want to thank those FBI agents who put their life on the line for me and risk their life to protect my family and me, " Chung said. "They are the best of the best. They are the FBI Los Angeles Counterintelligence Group." A law enforcement source confirmed to NewsMax.com that no fewer than six armed FBI agents were on hand to protect Chung as he spoke. His wife and daughter were seated just feet away as he addressed the standing-room-only crowd. So why, with the public and the press long ago bored with Chinagate, is this key cooperating witness still in such danger? Chung remains the only figure whose testimony links the Clinton campaign fundraising scandal directly to Chinese espionage…..But before Johnny Chung exposed significant parts of the Chinagate cover-up, Beijing's agents made sure he understood that cooperating with investigators would place his safety -- and that of his family -- in grave danger. ….."Since I've begun to tell the truth, my whole family has been under government protection," Chung told the crowd. Rather than embittering him, the experience seems to have given him the strength to withstand the pressure. "We love each other more because we are in the same room 24 hours a day, seven days a week.... I'm only allowed one hour under the sunshine." ….."I got a message for whatever group going to receive this message. You can try to kill me, but you cannot stop me from telling the truth." …."

The Hill 10/27/99 David Keene "….Sometimes it's the quiet ones who end up making a difference. Rep. Walter Jones of North Carolina is a hardworking, but hardly flashy member of Congress. He happens to be a Republican, but his father, who represented the district that he now calls his own, was a Democrat, and Walter was one when he first sought the office on his own……. Thus, it shouldn't have surprised anyone that he was upset when he saw the head of security for the Department of Energy tell a television interviewer that then-Energy Secretary Hazel O'Leary ignored warnings that virtually anyone could crack the security at our national laboratories and gain access to our most sensitive nuclear secrets. He couldn't believe what he was hearing, but he knew he wanted to hear more. And it should have surprised no one who knows him that he was outraged when he learned within a week that the man he heard make these charges was put on administrative leave for `leaking' information of a sensitive nature. The quiet man from North Carolina began to ask and then demand answers. The man on the tube was Lt. Col. Edward McCallum who, prior to being shelved as politically untrustworthy by the Clinton team, had served as director of something called the Office of Safeguards and Security at the Department of Energy for nine years. He was no nut, and he was certainly in a position to know what he was talking about. McCallum, you see, was responsible for security at places like Los Alamos where the Chinese seem to have been perusing our national secrets as if they were in the reading room of a public library….."

Inside the Pentagon 10/28/99 Catherine MacRae "…..The discovery late last year of arms and high explosive weapons hidden by the Soviet Union in Switzerland and Belgium confirms the existence of such arms caches in the continental United States, former KGB London Chief of Station Col. Oleg Gordievsky and Cambridge University professor Christopher Andrew told the House Armed Services military research and development subcommittee Oct. 26. And portable atomic demolition units, or "nuclear suitcases," may have been planted as well, they warned. Switzerland and Belgium officials located Soviet arms caches in December 1998 using secret archives smuggled out of Moscow by KGB defector Vasili Mitrokhin, who worked as an archivist for the agency…. However, despite credible evidence that pre-positioned arms caches and possibly nuclear weapons remain abandoned in U.S. territory, the Clinton administration has not asked the Russian government to provide the location and nature of any cache sites -- a fact that frustrates lawmakers and experts concerned about the danger such weapons pose to the public. "I am outraged the administration has not even asked the question of the Russians about where the specific sites are in the United States," subcommittee Chairman Curt Weldon (R-PA) said. In a meeting with FBI agents last week and in an earlier telephone conversation with bureau Director Louis Freeh, Weldon learned that the FBI is aware of the Mitrokhin file, but hasn't yet asked the Russian federal intelligence service for specifics on where and what has been planted on U.S. soil. The congressman says the FBI's comments echo public statements made by the Pentagon….."

Jane's Defence Weekly 10/27/99 Nick Cook "….Jane's Defence Weekly has learned of the existence of a highly-classified US Air Force (USAF) missile system test-fired secretly and successfully during the 1990-91 Gulf War……JDW has learned that the weapon, a ramjet-powered variant of the Raytheon AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM) was deployed to a USAF F-15 Eagle squadron in the Gulf during Operation 'Desert Storm' and was responsible for shooting down several Iraqi combat aircraft. These 'kills' were subsequently described as successful engagements by other, non-classified missile systems. According to US military sources, the weapon was supplied "in quantity" even though it was officially only a test article……..The air force's case for the F-22 has always rested on the aircraft's inherent stealthiness, which negates an urgent need for an expensive long-range, super-manoeuvrable air-to-air weapon. Whether Congressional leaders are aware of the black programme missile tested in the Gulf is unclear. Last week, a USAF spokesperson was unable to shed any further light. It is standard Department of Defense (DoD) practice not to comment on black programmes….."

AP 10/26/99 "....Scientists in ``sensitive'' countries such as China or Iran are to be barred from connecting with Energy Department computers that contain even unclassified information beneficial to a nuclear weapons programs, department officials said Tuesday. ``We will have a policy out within the next five days that will greatly tighten foreign access'' to computers at the department's weapons laboratories, department security director Eugene Habiger told a House Commerce subcommittee. That policy is part of broad plans to tighten security at the nuclear weapons labs after security lapses allegedly allowed China to obtain nuclear secrets at a New Mexico lab.....Officials worry that a spy working inside a lab could put classified information on an unclassified network to be retrieved by foreign agents. The classified and unclassified networks are separate, department officials said, and the labs are working on ways to prevent people from moving classified information onto unclassified computers....."

New York Times 10/27/99 James Risen "....In Washington, late in the day on Aug. 19, several officials, including members of the Administration's committee of top counterterrorism experts, were summoned to Clarke's office at the National Security Council and told to remain there for the evening. The group's members had met previously to discuss the idea of a retaliatory strike but had not been involved selecting targets. The officials were told of the decision to strike for the first time by Clarke that night, according to an official at the meeting. But as Clarke gave them reports to read about Al Shifa, he was met with skepticism. Some in the group told Clarke the intelligence was too thin. "People said, 'Dick, what is this?' " according to the participant, but Clarke brushed aside those concerns and said the decision to strike had already been made. .........Across the Potomac River at the C.I.A.'s headquarters in Langley, Va., similar worries were being expressed. Senior agency officials gathered in Tenet's conference room to discuss the targets and, one participant, there was strong disagreement about the plans...... "

Washington Post 10/27/99 Vernon Loeb "....Sen. Arlen Specter (R-Pa.) yesterday faulted the Justice Department's 1997 prosecution of physicist Peter H. Lee for passing nuclear secrets to China, saying government attorneys accepted a lenient plea bargain in an espionage case that could have merited the death penalty. "There are very serious questions as to why they didn't take a much tougher line," Specter said. "Here you had a case that could have been a real example and deterrent." ...... Federal prosecutors say they accepted a plea agreement in part because the information Lee passed to China in 1985 had since been declassified. Facing 10 years in prison, Lee was sentenced to 12 months in a halfway house, a $20,000 fine and 3,000 hours of community service....."

United Press International 10/26/99 Pamela Hess "....A congressman charged on Tuesday that the Soviet Union may have hidden explosives, radio-transmitters and possibly suitcase-sized nuclear weapons in the United States during the Cold War. Rep. Curt Weldon, R-Penn., said the secret installations were to be used in sabotage operations against U.S. power systems and other key infrastructures in the event of a war or other major crisis. Two such caches discovered last winter in Switzerland and Belgium were identified in KGB archives that also suggest hidden U.S. sites exist, possibly in Brainerd, Minn., around an oil pipeline in Texas, and in New York, California and Montana. .... ''I am outraged the (Clinton) administration has not even asked the question of the Russians about where the specific sites are in the United States,'' Weldon said at the hearing. ''We believe it is absolutely essential that the United States aggressively pursue the Russian government to identify all pre-deployed weapons sites in the United States and that we eliminate such remnants of the Cold War,'' Weldon wrote. ''We are concerned that the United States still lacks the critical information necessary to remove these known dangers to its citizens.'' .... Weldon also suggests in the letter that suitcase-sized Soviet ''atomic demolition units'' may also be hidden in the United States, offering a perfect weapon for terrorists bent on destruction. With the disclaimer that ''no one knows what a Russian suitcase bomb would look like,'' Weldon presented a mock-up of just such a weapon in a brown leather attache case at the opening of the hearing. ....."

Investor's Business Daily 11/2/99 "….It went almost unremarked, but something stunning happened in Washington, D.C., last week. A former CIA director denounced the administration for pursuing, as he saw it, a policy of ''appeasement'' toward the People's Republic of China. It's significant enough when a top spook, even one who vacated the office a few years ago, breaks custom and criticizes his president. But this was President Clinton's own first director of intelligence. And R. James Woolsey was draping him with a charge that harks back to the mollification of Adolf Hitler. Granted, the president's predecessor, George Bush, appointed Woolsey first. But Woolsey's nonpartisan reputation impressed Clinton so much that a reappointment recommended itself. Nor is Woolsey, who served honorably in 1993-94, an unnuanced or reflexive anti-Communist. We remember when he thoughtfully excused himself so that the wife of a Vietnamese diplomat could be seated at a White House Correspondents Dinner. Last week, at a Nixon Center forum that coincided with a congressional hearing on Taiwan defense, Woolsey's gentlemanly patience with a dangerous policy deserted him - and with it the imagined protocol that an ex-CIA director doesn't criticize his president. ''It is wrongheaded and dangerous,'' he said of the Clinton administration's attempt to forge a ''strategic relationship'' with mainland China….."

AP 11/3/99 Jim Abrams "….The Pentagon routinely skips over basic information in investigating people for security clearances and often falls months behind in reviewing those clearances, according to a congressional report made public Wednesday. Lt. Gen. Charles Cunningham, acting director of the Pentagon's Defense Security Service, said he agreed with the finding of the General Accounting Office, the investigative arm of Congress, and ``will take very action to remedy the deficiencies noted.'' The report, commissioned by Rep. Ike Skelton, D-Mo., found that security clearance investigations rarely cover all the areas required under federal standards and take an average 204 days to complete, more than double the 90 days deemed proper……"

Reuters 11/11/99 "....The FBI plans to announce a major restructuring Thursday, an overhaul meant to address internal problems with the handling of information and to put more emphasis on preventing terrorism and espionage, the Washington Post reported Thursday. ..... "We collect a lot of information, but ... our predictive intelligence is poor," the Post quoted Bryant as saying. "The bottom line is, We don't know what we know."' ...."

New York Post 11/11/99 "....The American public remains largely ignorant of the name and treacherous actions of Theodore Hall, the onetime nuclear scientist who died in London last week at the age of 74. His death has occasioned a fresh round of efforts to rewrite history by depicting his wartime disloyalty as an act of courageous heroism. Nothing could be further from the truth. A Harvard graduate at age 18, Theodore Hall was recruited in 1944 to work as a physicist on the super-secret Manhattan Project - the U.S. program to build an atomic bomb. Almost immediately, Hall approached Soviet officials in New York and offered to turn over everything he knew to Moscow. ..... Theodore Hall was motivated by one thing alone, something that went totally unmentioned, not surprisingly, in his Times obituary: He was a dedicated and committed Communist who believed that Stalin alone provided the world with moral leadership.....Asked early on by his KGB contact why he wanted to "disclose U.S. [nuclear] secrets for the sake of the Soviet Union," Hall replied, according to a document recently unearthed in Moscow archives: "Because there is no country except for the Soviet Union which could be entrusted with such a terrible thing." ....."

AP via Newsday.com 11/10/99 Matt Kelley "…..A former Energy Department intelligence officer and his former boss repeatedly contradicted each other during a House hearing Wednesday over their handling of alleged Chinese spying at a Los Alamos nuclear weapons laboratory. Former intelligence chief Notra Trulock said he was repeatedly ordered to keep quiet about the Los Alamos probe and that a 1997 suggestion to reassign the top spy suspect was rebuffed. Trulock's former boss, former Deputy Energy Secretary Elizabeth Moler, denied giving Trulock the gag order and said he never suggested canceling the security clearance of the suspect, Wen Ho Lee……. Trulock said he planned to tell the House panel in October 1998 that China had stolen nuclear secrets from Los Alamos, but Moler told him to delete the statement from his written testimony. The Energy Department gave the subcommittee a copy of Trulock's original testimony Monday, just before the panel met to consider issuing a subpoena for it. Trulock also failed to mention the Lee case when he was asked whether any nuclear secrets had been stolen from Los Alamos. Trulock said that was because Moler had ordered him not to discuss the case with Congress -- a claim Moler said was ``categorically not true.''…… "

AP via Newsday.com 11/10/99 Matt Kelley "….. Moler and Trulock also disagreed over whether Trulock had recommended removing Lee's access to classified information. During initial stages of the probe, which started in 1996, the Energy Department agreed with the FBI and decided against reassigning Lee to unclassified work to prevent him from being tipped off to the investigation. FBI Director Louis Freeh told Trulock and Moler the following year that they agency no longer needed Lee to be kept in place. Trulock said that opened up an opportunity to revoke Lee's security clearance. He said during the car ride following the meeting with Freeh, he had asked Moler to remove Lee's access to classified information. Moler denied the conversation ever took place. ….."

Washington Times/Inside the Beltway John McCaslin 11/9/99 "....The General Accounting Office report says the Pentagon's "personnel security investigations are incomplete and not conducted in a timely manner," and national security, as a result, is threatened. How threatened? We've since read the GAO report and from it pull these statistics: At the beginning of this year, 524,000 military, civilian and contractor employees held top-secret clearances. Another 1.8 million held secret clearances. While the government convicted 80 federal employees and contractor personnel of espionage from 1982 to September 1999, the report states that "hundreds of other potential instances have been detected." ....."

Newsmax 11/8/99 "…. FBI Director Louis Freeh admitted that Russia may yet have stored weapons - including nuclear suitcase bombs - at secret locations around the U.S. The stunning revelations appeared in yesterday's editions of the New York Post. The paper quoted Congressman Curt Weldon (R-Pa.) as having had a conversation with Freeh in the past two weeks. Weldon said that Freeh "acknowledged the possibility that hidden weapons caches exist in the United States . . ." …… Congressional scrutiny has focused on dozens of nuclear suitcase bombs that have disappeared from Russian's nuclear arsenal. According to Russian sources, including Russian General Alexander Lebed, Russia produced 132 nuclear suitcase bombs, each carrying 10-kilotons of explosive material. Only 48 remain in Russia's inventory; the rest have disappeared. The FBI has taken a nonchalant approach to locating the secret caches….."

Fox News 11/7/99 "….A Pennsylvania congressman is warning the FBI that there may be old, suitcase-size Soviet nuclear bombs buried throughout the United States. So far, FBI agents have already combed through Brainerd, Minn., hoping to discover secret stockpiles of everything from nuclear weapons to pistols, radios, maps and currency, congressional sources told The New York Post. "There is no doubt that the Soviets stored material in this country. The question is what and where," Rep. Curt Weldon, R-Pa., told The Post. ….. Weldon, an expert on Cold War Russia, says the former Soviet Union produced 132 suitcase-sized, 10-kiloton nuclear weapons, but hasn't fessed up to where 84 of them are, meaning they could have been sold to other countries or might even still be stationed at secret sites in the U.S. Right now, bombs could be laying in wait in upstate New York, California, Texas, Montana and Minnesota, he said. He draws his conclusions from the congressional testimony of KGB defector Vasili Mitrokhin and nationalist Russian Gen. Alexander Lebed. ….."

USA Today 11/4/99 Edward Pound "….The Defense Department expects to spend $80 million over the next several years on private firms to help clear a backlog of more than 600,000 security-clearance investigations. Charles Cunningham, director of the Defense Security Service, said hiring private investigative firms to augment work done by his agents is part of his reform plan to get his troubled agency back on track. The security agency does background investigations of employees of the military and defense contractors….."

Associated Press 11/18/99 Tom Raum "…. Soviet President Mikhail Gorbachev was riding high in popularity in the United States and Europe, after withdrawing the last Soviet troops from Afghanistan and agreeing to reduce forces in Eastern Europe. But the CIA by late summer 1989 was harboring grave reservations about him. ``The chances that Gorbachev will successfully overcome the dilemmas (many of his own making) that confront him are - over the long term - doubtful at best,'' said a September 1989 intelligence assessment prepared by the CIA's Office of Soviet Analysis for President Bush and other policy-makers. It argued Gorbachev's reform program was based on ``questionable premises and wishful thinking.'' That analysis was among nearly 400 pages of previously secret documents declassified today. The papers cover the last three years of the Cold War - roughly from November 1988, a year before the fall of the Berlin Wall, to Dec. 31, 1991, when the Soviet Union officially ceased to exist. …."

St. Paul Pioneer Press 11/14/99 Jonathan Landay "….. WANTED: Smart, clean-living college and graduate students fluent in non-Romance languages. Minority group members and Turkish and Iranian U.S. citizens are especially welcome. A taste for foreign intrigue is required. That's the Central Intelligence Agency's pitch for its biggest recruiting drive since the Cold War ended. And it's working even better than spymasters expected….."

Worldnetdaily 11/15/99 "…. The ranking intelligence expert in the U.S. Congress says he believes that one-time Democratic National Committee fund-raiser John Huang had a "double agenda" when he was working at the U.S. Commerce Department, and that the FBI probe of the matter has been inadequate. "I think the FBI has not done an adequate job on this," said Rep. Porter Goss , R.-Fla., chairman of the House Select Committee on Intelligence. Goss also served as a member of the House Select Committee on U.S. National Security and Military Commercial Concerns with the People's Republic of China (the Cox Committee). "I'm a little disappointed that they have not been more aggressive on this case and a couple of other ones." In a wide-ranging interview with the editors of Human Events, Goss, who was a clandestine services officer in the Central Intelligence Agency for 10 years, also discussed what he sees as a potential disaster looming for the U.S. intelligence community as the result of the gutting of resources that has taken place during the Clinton presidency. …."

American Spectator 11/30/99 Kenneth Timmerman "…. Gordon Oehler, head of the CIA's Nonproliferation Center, was forced to resign in the summer of 1998, after telling Congress in public testimony that the Clinton administration "regularly dismissed" information from the intelligence community on Russian and Chinese missile sales to Pakistan and Iran. "After returning from vacation, Oehler found his office empty, his staff reassigned, and the phone disconnected," one congressional aide said. "He got the message and resigned the next day." ….. Dennis Fred Simon, and two other unnamed China military experts, were demoted after they drafted a National Intelligence Estimate on Chinese military science and technology in 1997. Even though every U.S. intelligence agency had signed off on their findings, including that the Chinese were using U.S. technology obtained through satellite launches and other commercial projects for military purposes, TAS has learned both the 1996 and 1997 NIEs were suppressed on orders from CIA Director George Tenet. Two subsequent reports were also suppressed. They detailed recent developments of China's military industries, and its successes in "Deception and Denial" of U.S. satellite surveillance and communications intercept programs……"

PR Newswire 12/5/99 "…..The National Security Agency is now drafting "memoranda of understanding" to clarify ways in which it can help the FBI track terrorists and criminals in the United States, territory in which it is generally off-limits, Newsweek has learned. The FBI, never known for its technical know-how, welcomes the help from the high-tech NSA, but some senators are uneasy about letting the NSA eavesdrop more in the United States, report Washington Correspondent Gregory Vistica and Assistant Managing Editor Evan Thomas in the current issue of Newsweek….."

Reuters via Yahoo! 12/3/99 Francois Raitberger "….A Western European Ariane rocket launched a military surveillance satellite on Friday, the second in a French-led drive for a European ``spy in the sky'' independent of the United States. The Ariane-40 rocket blasted off at 11:22 a.m. EST from the Kourou launch pad in French Guiana. It placed into orbit 23 minutes later the 2.5-ton Helios 1B satellite, an enhanced twin of the Helios 1A satellite launched four years ago. France, running the project with minority partners Italy and Spain, gave high publicity to the launch from this site in the northeastern part of South America. ….."

Knight Ridder 12/3/99 Jonathan Landay "….Moscow's detention and expulsion of an alleged CIA officer is the latest round in an escalating spy war between the United States and Russia, according to knowledgeable U.S. intelligence experts. The public detention this week of Cheri Leberknight, a second secretary at the U.S. Embassy in Moscow, followed the quiet ejections from the United States earlier this year of two alleged Russian spies who were operating under diplomatic cover. One of the Russians worked at the United Nations in New York, the other at the Russian Embassy in Washington, said the sources, who spoke only on the condition of anonymity. Moscow responded to the two U.S. expulsions by ordering a U.S. military attache to leave in June, although it did not publicly accuse him of espionage….."

Electonic Telegraph 11/21/99 David Wastell "….. CHINA stole some of America's most sensitive nuclear secrets from one of the companies involved in assembling weapons for the United States arsenal, and not from the research laboratories which were the focus of a lengthy FBI investigation, embarrassed agents have been forced to admit. Evidence disclosed to members of Congress last week confirms what the FBI's critics have been saying for many months: that Taiwan-born Wen Ho Lee, the Los Alamos scientist who was the prime suspect in the federal inquiry, almost certainly had little or nothing to do with the theft. Instead investigators have found errors in the information obtained by China in the late 1980s - design details on W-88 nuclear warheads - which have been traced to one of the contractors and defence installations which build the weapon. The Chinese document which alerted US intelligence to the theft of the secrets contains incorrect measurements of parts used to make the warhead. ….."

AP 11/20/99 "….President Clinton on Friday gave government agencies another 18 months, to October 2001, to complete declassifying classified records more than 25 years old. In an executive order, Clinton also extended by three years the deadline for declassifying those records that are controlled by more than one agency and those containing sensitive intelligence information....."

Drudge Report 11/19/99 "….Clinton Administration officials tell the WASHINGTON POST in Saturday runs that fired Los Alamos scientist Dr. Wen Ho Lee has told federal investigators that he is missing at least two high density computer diskettes on which he put nuclear secrets. POSTIES Walter Pincus and Vernon Loeb write that a congressional source believes that Lee "copied nuclear weapons computer codes onto the diskettes, some of which have been retrieved by federal authorities. But Lee has failed to turn over -- and says he does not know the whereabouts of -- other diskettes that could contain millions of lines of computer code." ….."

THE WASHINGTON TIMES 11/19/99 Bill Gertz with Rowan Scarborough "…..Pentagon intelligence officials tell us the Chinese were allowed to join the World Trade Organization this week virtually cost-free. No concessions were made in WTO negotiations on the important issue of China's continuing sales of missile and nuclear technology to rogue states. The sales contradict numerous Chinese government pledges over the years not to sell dangerous weapons and know-how. Numerous intelligence reports are circulating in the Pentagon on the activity, based on reports from the alphabet soup of spy agencies - the CIA, the Defense Intelligence Agency (DIA), the National Reconnaissance Office (NRO) and the National Security Agency (NSA). …..The report identified the companies as Fizoptika, in Moscow, and China's Changda Corp. and noted that the Russian gyroscopes requested by the Chinese were the same items that Beijing secretly provided to North Korea's missile program earlier this year……"

American Spectator 11/30/99 Kenneth Timmerman "…. The Clinton administration has demoted at least four top analysts at the Central Intelligence Agency who raised alarms about Chinese efforts to acquire sensitive U.S. military technology through civilian contracts, current and former intelligence officials told TAS recently. Specifically, these analysts warned that U.S. aerospace companies, through satellite launch contracts, were transferring military equipment and technical information that could benefit China's nuclear weapons and missile programs. The disavowed analysts also authored reports containing explicit warnings that U.S.-made supercomputers were helping the Chinese to improve their strategic weapons systems, develop information warfare strategies against the United States, and improve their biological and chemical weapons. Until the Clinton administration lifted export controls on the sale of supercomputers to China in January 1996, the PRC had only managed to acquire a handful of these powerful machines. Since then, according to the bipartisan report released in May by Reps. Chris Cox (R-Calif.) and Norm Dicks (D-Wash.), more than 600 supercomputers have been shipped to China. "That figure is current only until January of 1999," Cox said in an interview. "Since then, these sales have accelerated." Cox warned that the administration now plans to allow the PRC to gain access to even more powerful supercomputers starting in January 2000, with no U.S. controls whatsoever……"

American Spectator 11/30/99 Kenneth Timmerman "…. Ronald Pandolfi was the CIA's highest ranking scientist when he visited the headquarters of Hughes Space and Communications in El Segundo, California in 1996. Pandolfi was part of a CIA team preparing a new National Intelligence Estimate on the PRC's military science and technology. To complete his research, Pandolfi had been instructed to visit a number of U.S. defense and high-tech companies trading with Communist China. Hughes company officials explained that after one of their Optus telecommunications satellites was destroyed in January 1995 during launch, they sent a technical team to China to examine why China's Long March rocket had failed. Pandolfi asked them if they had U.S. government permission to share technical information with the Chinese. By the time he left Hughes, accompanied by a female CIA liaison officer for Southern California, Pandolfi was carrying a copy of the Hughes launch failure report….. But Pandolfi never made it out the door--at least, not with the report. According to TAS sources, the Hughes official asked Pandolfi to wait while he checked on the classification level of the accident report--a report that Hughes had already given to its Chinese partners. Hughes ultimately turned the report over to the CIA and to several congressional committees, but not before Pandolfi was victimized for reporting on Hughes's questionable relationship with the Chinese. Pandolfi's CIA escort wrote a memo to the head of the China military analysis office, John Culver. She warned Culver that Pandolfi had shown unusual interest in obtaining the Hughes damage report, which could spell trouble for the Agency…… Before long, Pandolfi was asked by the Senate Intelligence Committee to testify on the incident. Eager to head off any further leaks of information to a team of congressional investigators scheduled to visit Hughes, Culver wrote a memo to the CIA's California field office, urging it to warn Hughes that Congress was starting to poke into the affair. Culver's letter triggered a Justice Department investigation of the CIA for obstruction of justice, which is still being debated by a grand jury. After Pandolfi testified in closed session before Senate Intelligence Committee Chairman Richard Shelby (R-Ala.), he was removed from the China division and put to work on developing alternative energy sources. "In other words, he was given an empty office, without a telephone or a computer," one source familiar with the case said……"

 

Washington Times 12/6/99 Bill Gertz "…..China is beginning work on a new strategic submarine that will be targeted against U.S. nuclear forces and carry missiles with small warheads similar to American weapons, The Washington Times has learned. The People's Liberation Army Navy will start construction in the next several weeks on its first Type 094 missile submarine, according to Pentagon and other administration officials with access to intelligence reports. Preparations for the construction were detected by U.S. spy agencies and reported to senior Pentagon officials late last month. The submarine will carry a smaller underwater variant of China's new DF-31 intercontinental ballistic missile, which was flight-tested in August. The JL-2 submarine-launched missile to be deployed on the Type 094 and the DF-31 are the first strategic systems that will contain stolen U.S. warhead and missile secrets, the officials, speaking on the condition of anonymity, told The Times. That view contradicts claims of other administration officials who believe there is no evidence so far that Chinese strategic weapons will be copied from U.S. systems……"

WorldNetDaily, "Inside the Ring" 12/10/99 Bill Gertz Rowan Scarborough "…..The United States failed to detect plans for India's sudden spate of underground nuclear tests last year because it inadvertently revealed satellite flyover schedules, according to an intelligence source. Underground nuclear tests normally have a good chance of being spotted by overhead photography. Activity picks up at the site as trucks bring in equipment to insert the warhead down a subterranean shaft. In fact, the intelligence source said, sometime before the five blasts in May 1998, the United States did detect unusual activity at the Pokhran site and presented New Delhi with a demarche demanding the test be halted. When India denied such preparations, the U.S. ambassador to India at the time, Frank Wisner, presented them with satellite photos as proof. Intelligence officials now believe India was able to estimate the times that satellites pass over the site by matching the series of pictures with the times and dates. When they believed the spies-in-the-sky were not around, they hurriedly set up the five tests -- much to the surprise of U.S. intelligence agencies. "We gave away national technical means in the process, apparently, and next time the Indians were a little smarter,'' the intelligence source said. ….."

UPI 12/10/99 "…..Secretary of State Madeleine Albright Friday said security at the department headquarters had been "lax" and "I have been consistently trying to tighten" it. Her comments to CNN came after the discovery of a listening device in the building. "We have been doing various kinds of sweeps to the State Department, " Albright said. She said that even before the discovery, "I found (security) lax in various areas...We will continue to clamp down on security here." The department said Thursday that the sophisticated listening device, possibly planted by a Russian diplomat detained by U.S. officials Wednesday morning outside the State Department, was not in the offices of Albright or any of her principle deputies. …."

WorldNetDaily.com 12/10/99 Bill Gertz Rowan Scarborough "…..Chinese intelligence agents are continuing to spy on the United States, both here and abroad. According to a recent Pentagon intelligence report, China has obtained secret U.S. military manuals on submarine acoustic capabilities -- the noise made by the stealthy underwater vessels. The submarine secrets are among the most closely held because they can give the Chinese, with a new attack submarine on the drawing board, the data needed to hunt down and kill U.S. submarines in wartime, we are told. China is in the process of building a new generation of attack submarine, along with a new class of ballistic missile submarine. The Type 093 attack submarine currently is under construction. Pentagon intelligence officials said the Chinese obtained the U.S. submarine data from sources in the United States and from spies inside the NATO alliance….."

Detroit News 12/8/99 John Omicinski "….."There are no facts about the future," says Vice-Adm. Thomas Ray Wilson. He says it so often it sounds like a mantra. But his business is getting information -- lots of it -- that offers clues to the future. Wilson is almost four months into his job as Defense Intelligence Agency director and his "customers," as he calls them, are looking for more than facts. "They ask us ... 'Can you be more predictive about the future?' " In an hourlong interview rare for the supersecret DIA, Wilson shared with reporters some views about what's ahead. The three-star admiral ventured these forecasts: * Despite its huffing and puffing, China is unlikely to attack Taiwan "on the near-term horizon."…."

INSIGHT Magazine 12/10/99 Jamie Dettmer "…..The Justice Department is bracing itself for the release early this month of the results of a two-year inquiry by Inspector General Michael Bromwich into Justice programs tasked with training foreign police and prosecutors. Department insiders suspect the report - there is considerable interest in its contents, too, on Capitol Hill - will prove highly embarrassing for Attorney General Janet Reno and her senior criminal-division officials. They predict it will excoriate endemic mismanagement at the programs, citing instances of serious security breaches, sexual favoritism in hiring practices and awarding of contracts and even possibly an attempt at visa fraud by top officials. Bromwich's investigation likely will finish the career of onetime Reno favorite Robert Bratt, the former executive officer of the International Criminal Investigative Training Assistance Program, or ICITAP, and the Office of Prosecutorial Development and Training, or OPDAT, insiders say. …."

INSIGHT Magazine 12/10/99 Jamie Dettmer "…..The IG's probe also encountered burgeoning allegations that ICITAP's senior staff regularly showed classified DEA, CIA and State Department reports and cables to uncleared consultants. Consultancy contracts also have been scrutinized. Several witnesses told IG investigators that some contracts with past Justice employees breached ethics rules, including one awarded to former assistant attorney general JoAnn Harris shortly after she left the Justice Department. That contract was approved by Deputy Assistant Attorney General Mark Richard, sources told the IG. Richard is blamed by some staffers at ICITAP for failing to monitor their program rigorously. Other contracts were given to people who were "unqualified, knew nothing about training and were simply there as the playthings of senior management," says one source. Since the launch of the investigation, Justice chiefs in the department's criminal division have been scurrying to distance themselves from ICITAP colleagues……"

NY Times 12/15/99 Thomas Friedman "....Memo to: Vyacheslav Trubnikov, Director, K.G.B. (now called S.V.R.) From: T.L.F. Dear Vyacheslav: This is a joke, right? You guys were bugging the conference room of the State Department's Bureau of Oceans and Environment? What were you thinking? You could bug the entire State Department -- they could put a microphone on every floor and pipe the conversations directly over to the Russian Embassy like Muzak -- and it wouldn't help you. What are you going to bug next? George W. Bush's foreign policy library? The International House of Pancakes? C-Span? People say that your bugging of the State Department means the cold war is still on. Wrong. It means the cold war is truly over. How else can one explain that you sent a Russian diplomat, in a car with diplomatic license plates, to regularly park right in front of State and then walk around suspiciously in a trench coat? Why didn't he just wear a Sputnik hat and a sandwich board saying: "Hi, I'm Boris. I'm spying for Russia. Could you please speak louder?" The K.G.B. would never have been so sloppy if the cold war were still on......"

Washington Times 12/16/99 Kenneth Timmerman "....Neither the FBI nor the Bureau of Diplomatic Security have bought on to the politically correct line of the Clinton-Gore administration that Russia has become America's best friend, and that the days of Cold War spying are over. Last week, the State Department announced it had discovered a listening device planted in a secure top floor conference room by Russian intelligence agents. The bug had been concealed in a piece of chair rail molding, carefully crafted to look like the original, and was placed by an intruder who had repeated access to the room, which requires special security codes and is used by senior State Department officials to discuss the most sensitive matters. The Bureau of Diplomatic Security discovered the bug when a Russian diplomat, Stanislav Borisovich Gusev, was caught roaming the streets just outside. U.S. counterintelligence officers discovered a receiver hidden beneath a box of facial tissues in his official Russian Embassy car, which he had carelessly parked down the street. These revelations are disturbing enough in themselves, since they reveal a serious breach in our defenses against foreign spies. The White House is going to pin the blame on the FBI and the State Department's Bureau of Diplomatic Security. They also undoubtedly will blame the Republican Congress, for cutting the State Department's overall budget in the past....."

NY Times 12/16/99 James Risen "..... A Senate Judiciary subcommittee investigating the government's handling of evidence of Chinese nuclear spying has canceled two closed hearings scheduled for this week because the F.B.I. director, Louis J. Freeh, feared that testimony there might harm the prosecution of Wen Ho Lee. The review by the Senate panel involves the way investigators approached evidence that the Chinese had stolen data concerning America's most advanced nuclear warhead, the W-88, and is not directly related to the case against Dr. Lee. But Mr. Freeh feared that hearings on the W-88 case would include testimony by officials also involved in the Lee case and so would create documents to which Dr. Lee's lawyers might gain access in the pretrial discovery process....."

AP via Wash Post via Capital hill Blue 1/8/00 "….Fired nuclear physicist Wen Ho Lee was misled by federal investigators who told him he'd failed a Department of Energy lie-detector test, The Washington Post reported today…… The Post obtained a transcript of the March 7 interrogation, which was recorded by the FBI. The newspaper said the questioning by the federal agents was highly adversarial and ended only after Lee asked repeatedly to leave…"

Washington Post 12/27/99 "….Vasili Mitrokhin, a former KGB archivist who hand-copied thousands of top secret Soviet intelligence documents and smuggled them out of KGB headquarters in his sock, startled the world in September when he revealed in his recent book, "The Sword and the Shield," that Soviet intelligence operatives had arms caches buried all over the United States. ut it was Stanislav Lunev, a colonel with Soviet military intelligence (GRU), who first disclosed in 1998--with far less public notice--the existence of buried Soviet arms caches in "Through the Eyes of the Enemy," a book he wrote with former National Security Agency officer Ira Winkler. Lunev defected to the United States in 1992, at about the same time Mitrokhin defected to Britain, and is now in the federal witness protection program. "Though most Americans don't realize it, America is already penetrated by Russian military intelligence to the extent that arms caches lie in wait for us by Russian special forces--or Spetznatz," Lunev and Winkler write in the book. ……"

INSIGHT Magazxine 12/1999 Jamie Dettmer "….U.S. counterintelligence officers secured Secretary of State Madeleine Albright's agreement last August to refrain from briefing her deputy, Strobe Talbott - a onetime Moscow correspondent for Time magazine - about their discovery of a sophisticated Russian eavesdropping device concealed in a seventh-floor State Department conference room. According to several U.S. intelligence and Justice Department sources, all of whom spoke on the condition of anonymity, Talbot was kept out of the loop of the security probe that led to the arrest outside the State Department on Dec. 8, 1999, of 54-year-old Russian intelligence officer Stanislav Borisovich Gusev. "Talbott didn't need to know; it is as simple as that," says a Justice Department source who declined to expound on the reasons why the Clinton administration's main Russia expert was shut out. A CIA source tells news alert!: "Talbott has long been widely seen at Langley as being too close to the Russians - a sort of trusted friend, you might say." According to that source, only Albright herself and Undersecretary of State Thomas Pickering were kept fully briefed on the progress of a bug hunt triggered when Gusev, the top technical intelligence officer in the Russian Embassy, was spotted last summer by an FBI surveillance team wearing headphones and loitering in his car and on foot on a weekly basis outside the department. The FBI team suspected immediately that Gusev was receiving transmissions from a bug. Talbot, they were afraid, inadvertently might let slip information about the security probe….."

Washington Post 12/23/99 Walter Pincus "….Wen Ho Lee, the Los Alamos nuclear scientist who has been indicted for mishandling massive amounts of secret nuclear weapons codes, went to unusual lengths to mislead his colleagues about why he downloaded classified material, according to an FBI investigator. At a court hearing last week in New Mexico, the investigator testified that Lee talked a colleague into letting him use his unsecure workstation for the downloading of classified material to unclassified tapes by telling him he was creating a resume. Lee persuaded the employee to teach him how to download information from his office computer system in a secured area to a computer workstation outside that area, where he then put the material on portable magnetic tapes. Lee never told the the colleague he was transferring highly classified nuclear secrets, FBI agent Robert Messemer told the hearing……. "There is no specific work reason to assemble these top-secret and secret files and place them into the open system or download them onto a portable mechanism," Messemer testified…..Instead of downloading just a resume, Lee in 1993 and 1994 made more than nine tapes with information on all the U.S. nuclear weapons systems. "Lee took a very methodical, meticulous approach to the assembly of all these files," Messemer said. "And, moreover, he did so in the evening hours, not during regular business hours, and he did so on weekends, which we also viewed as being somewhat secretive." ….."

Sources 12/16/99 "….SOURCES has learned from diplomatic and Justice Department sources that top FBI officials are furious with the State Department for having decided to expel Stanislav Gusev, the 54-year-old employee of the technical section of Russia's Foreign Intelligence Service, or SVR, who ignited a political firestorm this past week following disclosures he allegedly was caught receiving signals in his car outside the State Department building in Washington. The signals were transmitted from an electronic eavesdropping device in a conference room on the floor of the U.S. State Department occupied by America's top foreign policy makers, including Secretary of State Madeleine Albright. According to the sources, senior FBI, and even Justice Department officials, are furious over the State Department's decision, which had the approval of Albright, because, they say, it has seriously impaired the FBI's ability to catch a person or persons inside the State Department which FBI counterintelligence authorities and agents of the State Department's Office of Diplomatic Service believe helped Gusev in bugging the executive floor of the State Department. …."

Washington Monthly 1/2000 Amy Zegart Stanford University Press review by Romesh Ratnesar "…."The president. . . was prepared to send ground forces into Kosovo to assure a NATO victory," one former NSC official told The New York Times. "But why did he and his advisers arrive at this conclusion so late in the war?" The answer can be found, in part, in Amy Zegart's incisive and revealing new book, Flawed By Design: The Evolution of the CIA, JCS and NSC……. Zegart, an assistant professor of public policy at UCLA who has worked on the NSC staff, is particularly thorough in describing the bureaucratic horse-wading that preceded the drafting of 1947's National Security Act, which created the NSC, JCS and CIA. Truman's primary priority was to unify the armed forces and create a new secretary of defense who could attend to the hard-business issues of military strategy, supply, and operations. The War Department drafted a proposal advocating a single, powerful military commander with jurisdiction over all armed forces and "decisive influence within the JCS," and a robust, centralized intelligence-gathering body. But the final products of the National Security Act included neither idea. Zegart identifies the chief culprit as the United States Navy, which following World War II was the military's preeminent service and had "much to lose and little to gain by changing the existing. . .system." Vigorous lobbying by Navy Secretary James Forrestal resulted in the erection of a system that featured, at the time, a largely powerless Joint Chiefs of Staff and a similarly weak Central Intelligence Agency. To cement its power, the Navy also proposed the creation of a National Security Council that would bring together the country's highest-ranking national security officials, forming an independent foreign policy-making body through which the Navy could retain leverage upon presidential decisions…."

Inside China Today 1/23/2000 AFP "…..US Defense Secretary William Cohen is to meet a senior Chinese military delegation at the Pentagon next week to try to revive military relations that were suspended after the US bombing of the Chinese embassy in Belgrade last year. The talks Tuesday and Wednesday come at a time of strains on a number of fronts, particularly Taiwan and US missile defense programs, which have highlighted the dangers of estrangement between Washington and the Asian giant. "It's an effort to rebuild contacts and discussions between the US and the Chinese militaries," Pentagon spokesman Kenneth Bacon said last week……. The Chinese delegation, led by Lieutenant General Xiong Guangkai, the deputy chief of the Peoples Liberation Army general staff, will make office calls in Washington Monday before sitting down with their Pentagon counterparts Tuesday, an official said. Cohen will meet briefly with Xiong at the end of the talks, but the Pentagon side will be led by Walter Slocombe, the undersecretary of defense for policy. The commander of US forces in the Pacific, Admiral Dennis Blair, also was in town for the talks, officials said….."

Los Angeles Daily News 1/21/2000 Bill Hillburg "…A former Russian spy will come out of the cold on Monday in Los Angeles to testify to Congress about ongoing espionage operations in Southern California and weapons stockpiles allegedly hidden away in the Southland and other U.S. sites. Stanislav Lunev, a former colonel in Russia's GRU intelligence agency who defected in 1992, will testify before the House Committee on Government Reform, which includes Reps. Henry Waxman, D-Los Angeles, and Stephen Horn, R-Long Beach. Lunev, who is enrolled in the Federal Witness Protection Program, will have his head covered by a hood during his testimony, and his voice will be electronically altered……. Committee spokesman Mark Corallo said Thursday that Lunev is expected to give details on Russian espionage targeting Southern California's defense and high-tech industries. "There appears to be widespread espionage activity in the Los Angeles area, and there may be quite a few of these arms stockpiles in the region," he said……. Concern over the alleged Russian weapons stockpiles rose in November, when Rep. Curt Weldon, R-Pa., raised the possibility the spy caches might include suitcase-sized nuclear weapons. Russian officials have confirmed their arsenal includes the devices, which can produce a 10-kiloton. blast. But there is, no evidence the nukes have been hidden in the United States by Russian agents…… Continuing Russian espionage in the United States was the subject of Lunev's 1998 book "Through the Eyes of the Enemy." In his book, Lunev charged that Russia's post-Cold War leaders still see the United States as an enemy. He also charged that orders from his spy masters in Moscow did not change following the end of the Cold War and the collapse of the Soviet Union in 1991….."

Washington Times 1/21/2000 Bill Gertz Rowan Scarborough "…. Its successes often remain secret, but CIA problems get lots of notice. So it is with the case of Cheri Leberknight, who was arrested and expelled from Russia in November as a spy for the CIA. Russia's RENTV television network provided the first inside look at the case last week. The network broadcast an interview with ``Gennady,'' a man identified as having a criminal record from the Tula region whom the CIA tried to recruit as an agent. Gennady said he went to the American Embassy in Moscow seeking work in Alaska. Two State Department security officials questioned him about his political affiliations and whether he worked for Russian intelligence. Last, they asked about his views of the United States and whether he would be willing to work secretly as an agent. Upon learning that he knew Russians who were of interest to the CIA, Gennady was turned over to Miss Leberknight, who was identified as ``Liza.'' ….. Gennady was then instructed not to come again to the embassy and to avoid meetings with Americans or Britons to avoid attracting the attention of Russian counterspies. The television program ended by simply stating that ``However, Gennady has not managed to become a CIA agent.'' Intelligence sources tell us Gennady was a KGB ``provocation'' - the term of art for an operation designed from the start to ensnare U.S. intelligence agents by dangling the prospect of a new recruit. CIA Director George Tenet has been pushing case officers to take more risks in signing up agents under a plan to improve the agency's weak human intelligence gathering……"

AP 1/21/2000 H Josef Hebert "….About 1,000 documents containing nuclear weapons secrets were mistakenly declassified and made available to the public under an openness campaign begun five years ago, the Energy Department told Congress. While the documents were opened to researchers, only one of the files was actually examined by any outsiders before the mistakes were discovered, the department said in a report. That document involved nuclear weapons deployment to foreign countries in the 1950s. The documents were among millions of pages of papers declassified between 1995 and 1998 under an executive order from President Clinton directing federal agencies to lift the veil of secrecy from papers that contain historical material and are more than 25 years old……. A classified report sent recently by the Energy Department to Congress details the findings of a DOE audit of some 948,000 pages of nuclear weapons-related documents that had been part of the three-year declassification effort. During the review, auditors found that 14,890 pages containing secret weapons information had been mistakenly declassified and made available for public view at the National Archives, according to an unclassified summary of the report sent to the armed services committees of both the House and Senate. ….."

South China Morning Post 1/22/2000 Rachel Clark "…. A senior official of the People's Liberation Army left Beijing on Saturday for talks with US defence chiefs in a further healing of the rift between the two countries. The meeting between Lieutenant-General Xiong Guangkai, deputy chief of general staff, and the US Defence Department officials will be the highest-level contact since the Chinese embassy in Belgrade was bombed by Nato in its Kosovo campaign last May……. General Xiong has meetings scheduled in Washington and at the Pentagon on Monday and Tuesday. He is also expected to meet US Defence Secretary William Cohen. A Pentagon spokesman said the two sides will compare their strategic assessments for the 21st century, discuss geo-political conditions in the region, and talk about their respective military modernisation programmes….."

Newsday.com 1/14/2000 AP "….Federal prosecutors offered to reconsider their plan to keep a fired Los Alamos scientist in jail until his trial on security violations, but the scientist says he isn't interested. Wen Ho Lee's attorneys have rejected the offer, which hinged on Lee submitting to intensive FBI interviews aimed at determining what happened to seven missing computer tapes containing nuclear weapons secrets. His lawyers said that in the FBI's previous interviews of Lee, agents lied to him about his earlier polygraph tests and threatened him with references to Julius and Ethel Rosenberg, the only Americans ever executed for espionage. ``In light of these tactics, it should come as no surprise that Dr. Lee does not trust the FBI to deal with him fairly and honestly,'' attorneys John Cline and Nancy Hollander said in a letter to acting U.S. Attorney Bob Gorence dated Jan. 11….."

The Associated Press 1/19/2000 Richard Benke "….Attorneys for jailed scientist Wen Ho Lee have asked a federal appeals court to release their client on bond, saying his right against self-incrimination was violated. The lawyers on Tuesday urged the 10th U.S. Circuit Court of Appeals to overturn rulings disallowing bail for Lee, who is charged with breaching security at Los Alamos National Laboratory by moving classified material to unsecure computers and computer tapes. Prosecutors contend Lee, 60, stole enough nuclear secrets to build a functional thermonuclear weapon. They have called the information downloaded by Lee the ``crown jewels'' of American science. The appeal said prosecutors failed to prove Lee was a flight risk and danger to the community and said he was denied bail in part because he did not provide more information about seven missing computer tapes….. Despite Lee's willingness to put up $100,000 bond, be electronically monitored and overseen by a court-appointed custodian - a Los Alamos colleague with top-secret clearance - the court still found no way to guarantee the nation's secrets would be safe……"

Reuters 1/19/2000 "…. Hundreds of declassified U.S. government documents at the National Archives, available for public perusal, contained nuclear weapons secrets that mistakenly had been left in, an Energy Department review made public Wednesday said. The Energy Department, due to a 1998 law, is reviewing already declassified documents to ensure that nuclear secrets were not inadvertently left in, and issued its first report to Congress shortly before Christmas, an official said….."

World Tribune Online 1/10/00 "....Several rivals and enemies of the United States have developed the technology required to launch a cyberattack on computer systems throughout the country. U.S. officials said that since 1998 the unspecified nations have developed doctrine and techniques required to attack U.S. computer systems that drive the nation's military, air traffic control and infrastructure systems. "We are aware, now, over the course of the last two years, that several other nations have developed offensive information warfare units, organizations, tactics, doctrine and capability," said Dick Clarke, a counterterrorism coordinator at the National Security Council. "Now, that doesn't mean they're going to use them. But it means that they're developing them, they're getting better all the time." Clarke would not name the countries. But experts said the nations probably include Russia, China and Yugoslavia....."

 

Stephen Arche 1/25/2000 "….At a House Committee on Government Reform hearing here, the one-time colonel [Stanislav Lunev] in Soviet and then Russian Federation military intelligence, gave a chilling presentation of his country's Cold War plans to defeat the United States…… From behind a screen to shield him from the view of the audience, Lunev testified Soviet generals had designed a special plan for the future war against America and its allies in which special-operation forces commanders would come to the United States and other NATO countries a few days - maybe even a few hours - before actual war. Using weapons systems that had already been hidden at strategic points throughout the United States, he said, the Soviet generals would have demolished the country's political infrastructure by destroying strategic facilities and assassinating top military leaders such as the president and vice president just hours or minutes before a nuclear missile strike. Lunev said one of his espionage assignments had been to scout "drop sites" for weapons caches. He said he believes Russian military weapons are currently hidden in strategic points all across the United States and Europe for just such a purpose. Those hidden stockpiles of weapons would include portable nuclear devices, chemical and biological weapons, conventional weapons and incendiary devices, he said. Lunev told the panel the weapon caches could be used whenever the Russian commanders in charge are given the "go." …… "These military plans are still consistent with Russian generals, and these military plans in time of possible war would be fulfilled by special-operations forces commanders." ….. Burton said, "Some members of the media are indicating we might be trying to create paranoia and a new Cold War. That's untrue…… "Despite administration claims that our Russian policy is a success, many of us have watched and worried and warned for years that the Russian policy has careened toward failure," he [Pry, formerly CIA] said. "The administration's Russian policy has been more of a public-relations campaign to persuade the American people all is well rather than a hardheaded, bulleted program to really advance free enterprise and democracy in Russia and to protect U.S. vital national interests."…."

Stephen Arche 1/25/2000 "….Weldon said the Clinton administration has had a consistent pattern of not wanting anything to surface that might give the perception of a potential or real problem in the relationship between the United States and Russia, including the theft of International Monetary Fund dollars, abuse in insider trading in Russia and arms-control treaty violations. Although many questions regarding U.S. foreign policy with Russia are aimed at the Clinton administration, Weldon said, the hearing was not a "Republican witch-hunt." Burton observed that Rep. Henry Waxman, a Democratic member of the committee who represents a Los Angeles district and is a staunch defender of the Clinton administration, chose not come to the hearing. "I really regret the State Department isn't here today," Burton said. "They just jumped through hoops not to testify." ……. "

New York Times 1/25/2000 Judith Miller "….Some of the American money awarded to support Russia's civilian biological research was secretly shifted to Biopreparat, a shadowy organization that once directed the Soviet Union's germ warfare program, several Russian scientists say. American officials, who for five years have walked a delicate line in providing aid to Russia, remain suspicious about the activities of Biopreparat, which has been reborn as a state-owned drug company. The Americans are concerned because of its continuing secrecy and because it is led by the same military and intelligence officers who spearheaded and concealed the Soviet Union's biological weapons programs during the cold war. Separately, Clinton administration officials acknowledged that the United States had been less than meticulous in the mid-1990's in enforcing its ban on aid to Biopreparat. Records show that the National Aeronautics and Space Administration and the United States Agency for International Development made grants in that period that benefited Biopreparat. Administration officials said today that they had tightened their procedures. "There's been a learning curve," one administration official said….."

AP via Drudge 2/2/2000 Tom Raum "....CIA Director George Tenet told Congress today that predecessor John Deutch kept "high levels of classified materials" on an unsecure computer in his home that had Internet access. "We can't tell you that damages didn't occur," Tenet said. Tenet said the CIA erred in not acting sooner in relaying details of the case to the Justice Department and to congressional intelligence panels. "There was no excuse for that," he said. An internal CIA investigation led to Tenet's stripping Deutch's security clearances last August. However, an internal CIA investigation of Deutch's mishandling of classified documents began in December 1996, just as he was leaving office. ...... "The internal investigation took too long to complete. The process was not perfect," Tenet said. "We were in a period of transition. We were dealing with the former director." ...... Tenet insisted he eventually took "decisive action" against Deutch and made no attempt to cover up or drag out the investigation. He balked at a question whether the sensitive material on Deutch's computers would be as damaging to U.S. security interests - if it fell into the wrong hands - as documents and information passed on by convicted spies Aldrich Ames and Jonathan Pollard. This is not a case of espionage, Tenet asserted. "I would not put the Deutch case in the same category as Ames and Pollard. I don't think it's fair." ...... "

USA Today 2/3/2000 Edward Pound ".....- Sen. John Warner's decision to investigate the troubled security-clearance program at the Department of Defense means that two congressional panels now are looking for answers on what went wrong in a program designed to safeguard national security. In an interview this week, Warner, a Virginia Republican and chairman of the Armed Services Committee, said his panel would conduct a "thorough investigation" into the program, including the operations of the Defense Office of Hearings and Appeals (DOHA). DOHA grants clearances to employees of defense contractors. In a story Dec. 29, USA TODAY revealed that the agency regularly gave clearances to workers with criminal records and other serious problems. The revelations prompted Sens. John McCain, R-Ariz., and Bob Smith, R-N.H., to ask Warner to investigate....."

New York Times 2/3/2000 James Risen "....The head of the Central Intelligence Agency, George J. Tenet, acknowledged today that the agency had been too slow in notifying the Justice Department and Congress about evidence that his predecessor, John M. Deutch, had improperly placed large amounts of classified material on unclassified computers in his home. "There was no excuse for that," Mr. Tenet said at a hearing before the Senate Select Committee on Intelligence. Notification of both the Justice Department and the Congressional Oversight Committees "should have been done promptly, certainly by the spring of 1997," he said. ....... The report cites the agency's former executive director, Nora Slatkin, and its former general counsel, Michael O'Neill, saying their actions "had the effect of delaying a prompt and thorough investigation of this matter." It also cites Mr. Tenet as saying he "should have involved himself more forcefully to ensure a proper resolution of this matter." .......Among other things, Mr. Deutch refused to be questioned by security officials, and the senior officials allowed him not to be questioned. Mr. O'Neill kept four computer cards containing files from Mr. Deutch's computers in his safe for about three weeks, rebuffing efforts from the security staff to gain access to the material, the report adds. ...... Although there is no evidence that the classified documents had been taken by anyone, "I can't give you a statement that it absolutely didn't happen," Mr. Tenet said. Mr. Deutch was accessing the Internet via unsecure services with the same computers on which he had classified material, according to the inspector general's report. Others in Mr. Deutch's home also had access to the computers, which had been issued by the C.I.A. The report says that someone using the computers accessed what it describes as "high-risk" Web sites. It also says that e-mail from a former Russian scientist was found on one of Mr. Deutch's computers. ....."

New York Times 2/2/2000 James Risen "....The director of central intelligence, George J. Tenet, said today that he had taken "decisive action" last year after receiving the results of an investigation by the C.I.A.'s inspector general into evidence that a former agency director, John M. Deutch, had mishandled classified documents. Mr. Tenet suspended Mr. Deutch's security clearances indefinitely last August, after receiving the results of the inspector general's investigation. In a statement today, responding to an article in The New York Times about the inspector general's report, Mr. Tenet also denied that senior C.I.A. officials had impeded an internal investigation into evidence that Mr. Deutch had placed classified documents on unclassified computers in his home. ...... According to the inspector general's report, which remains classified, senior C.I.A. officials took actions that had the effect of delaying an initial investigation into evidence that Mr. Deutch had placed classified material on unclassified computers, potential violations of C.I.A. rules and United States law......"

Freeper Thanatos on John Deutch 2/1/2000 "…..On January 26, 1998, Clinton appointed John Deutch as a Member of the President's Committee of Advisors on Science and Technology and Appointed him Chairman of the Commission is to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction.
This Commission Gives Deutch FULL access to NSA, CIA, FBI, and other agencies of the United States Goverment national Secrets.. Especially those of the Nuclear, Biological, Chemical warfare. Basically, he has access, thru Presidential Appointment, to every single secret of the United States.

On August 5, 1996, It was talked at a White House Press Conference where Deutch was investigating the Mena Air Force Base in Arkansas and it's connections to Governor Bill Clinton.
PRESS BRIEFING BY MIKE MCCURRY
After McCurry basically blew off the report as so much BS, You notice that is when it was discovered that Deutch had Classified Material at home. Clinton knew about Deutch's Security Risk in 1996 when he Appointed Anthony Lake as Acting Director of CIA when it was announced that Deutch wanted to leave the CIA. Clinton [knew or should have known] at that time Tenet was Heading up the Investigation of Deutch…..
REMARKS BY THE PRESIDENT IN ANNOUNCEMENT OF NEW CABINET OFFICES (Dec 5, 1996)

This was hinted at the next day by Mike McCurry's Press Briefing on Dec 6, 1996
Press Briefing

"At the same time, all of us in a position to receive sensitive classified material know the obligations that go with that responsibility. And we know that there are standards that apply to how we handle that material and that we have to be scrupulous in doing so. The specific case involving Mr. Nuncio was handled by the Director upon recommendation of three-person experts panel that he had review it. I really can't comment on that deliberation because the Director has done so and he had the ability to do it. I can only say that we at the White House who know him, respect him, hope that after the one-year period in which he does not have access to this information, he will see his own career advance and certainly we hope that nothing about this incident prevents his career from advancing as it should given his considerable talent."

Clinton also Knew about the Security risk of Deutch when Anthony Lake was
not to be approved by the Senate because of a Justice Dept Investigation of Lake. (December 13, 1996(For Security leaks)) Tony Lake withdrew his name from Nomination as Director of CIA in March 1997... Clinton then immediatly appointed Tenet as Acting Director of CIA.REMARKS BY THE PRESIDENT ON BUDGET MEETING AND TRIP OVERSEAS After all this, 9 months later (December 17, 1997)Clinton Appoints Deutch to Chair his COMMISSION TO ASSESS THE ORGANIZATION OF THE FEDERAL GOVERNMENT TO COMBAT THE PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

One month Later (1/26/1998), Clinton
Appoints Deutch to PCAST "President's Committee of Advisors on Science and Technology". PCAST was created to advise the President on matters involving science and technology, and to assist the National Science and Technology Council in securing private sector involvement in its activities. On July 14, 1999. Deutch and Arlan (Irish Law) Spector came out with their report of the Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction (the Deutch-Specter Commission).
John Deutch, on October 6, 1999.. Co-Wrote an Op-ed that basically was against Clinton's Baby, the CBMT Treaty that Congress Rejected was Garbage.. Here is the
Lockhart Press Conference that goes against Deutch's comments….."

NY Times 2/1/2000 James Risen "….. Top officials of the Central Intelligence Agency impeded an internal investigation into evidence that the agency's former director, John M. Deutch, mishandled large volumes of secret material, a classified report by the agency's inspector general concludes. ….. The report did not accuse Mr. Tenet or his aides of violating any laws in their handling of the incident. But at the inspector general's recommendation, the C.I.A. has set up a special panel to examine whether Mr. Tenet and other top officials handled the case appropriately. …… The investigation of Mr. Deutch began in December 1996, just as he was leaving office. According to the inspector general's report, C.I.A. computer security specialists discovered he had placed large volumes of classified material on personal computers in his home, including information about some of the government's most sensitive covert operations. This was a potential violation of both agency rules and federal law, but the report says an inquiry by security officials was effectively shelved after a few months. The C.I.A. did not tell the Justice Department about the case for more than a year. The inspector general did so in early 1998, after an agency employee complained to the inspector general's office that the inquiry had not been properly handled, according to officials knowledgeable about the investigation. Mr. Tenet learned of the possible security breach almost immediately but did not move to reprimand Mr. Deutch until the inspector general had notified the Justice Department of a possible violation and completed his report on how the case had been handled inside the C.I.A. After reviewing the case, the Justice Department decided last April not to prosecute Mr. Deutch, who lost his security clearances. He issued a statement in August apologizing for his actions……"

NY Times 2/1/2000 James Risen "….. As the C.I.A. case unfolded in late 1996 and early 1997, the report says, it was closely watched by Mr. Tenet, Michael O'Neill, the agency's general counsel at the time, and Nora Slatkin, its executive director. Frustrated by limits the report says were imposed on them, C.I.A. security officers concluded that senior officials were protecting Mr. Deutch and "washed their hands" of the case. One security officer told the inspector general that the "investigation had been one in name only."... Their delay in telling the Justice Department about the case allowed a one-year time limit on appointing an independent counsel to lapse. "Application of the independent counsel statute was not adequately considered" by C.I.A. officials handling the case, the report says….. The report specifically cites Mr. O'Neill and Ms. Slatkin for impeding the inquiry. It also criticizes Mr. Snider's predecessor as inspector general, Frederick Hitz, for failing to "ensure the timely and definitive resolution" of the case. ….."

NY Times 2/1/2000 James Risen "….. On Dec. 17, a C.I.A. computer security official went to Mr. Deutch's home and found a large number of classified documents stored on his computers. He also found that Mr. Deutch had been accessing the Internet with the same computers, through unsecured services. He had Internet access through America Online, Citibank's personal banking Web site and a Defense Department service. The security official told his superiors what he had found. Almost immediately, Mr. O'Neill and Ms. Slatkin were informed that classified material had been found on the computers. Mr. Tenet was soon told about the discovery by Ms. Slatkin. On Dec. 20, 1996, Mr. Deutch began to delete files from his computers, including more than 1,000 that had been stored on one portable memory card. That day, Mr. Deutch called a C.I.A. computer specialist to ask for help because he was having trouble deleting the files, according to the report. ….."

US GAO 9/30/98 "……Abstracts of GAO Reports and Testimony, FY98 NSIAD-98-245, Sept. 30, 1998 (17 pages). Executive Office of the President: Procedures for Acquiring Access to and Safeguarding Intelligence Information. [Text] [PDF] The White House Security Officer told GAO that between 1993 and 1996, he could not find any White House-wide procedures to control access to highly classified information. Central Intelligence Agency (CIA) directives require that access to such information be controlled under the strictest application of the need-to-know principle and in accordance with applicable personnel security standards and procedures. Since at least 1996, the National Security Council has granted temporary access to highly classified information to government employees and individuals from private industry and academia--before completion of a security background investigation and without notifying the CIA. The White House-wide security procedures issued in March 1998 do not set forth security practices that White House offices are to follow in safeguarding classified information. Moreover, the White House has yet to establish a security self-inspection program, despite an executive order mandating such a program. The Director of the Information Security Oversight Office said that his office has never done an on-site security inspection of classified programs at the White House. ….."

The Detroit Free Press 1/28/2000 AP "….The CIA is on a big push to recruit new agents and Kettering University is a prime target. The university in Flint is among 66 colleges nationwide that meet the criteria that the spy agency is using to recruit agents, CIA spokesman Tom Crispell said Thursday. "We are now in the middle of the second year of our recruitment program," Crispell said. "And it is the largest since the end of the Cold War." The agency also is looking at the University of Michigan and Wayne State University for recruits who are especially interested in engineering and computer science, he said. The program has been successful, Crispell said, with about 400 students participating. The agency has offered about 90 percent of them continued employment with approximately three-quarters of them accepting full-time positions. ….."

Houston Chronicle 1/19/2000 Deborah Tedford "…..The Justice Department on Tuesday admitted that it used false testimony in the Houston trial of an ex-CIA agent in an effort to conceal the CIA's role in a plan to send weapons to Libya despite an arms embargo. Edwin Wilson was convicted in 1983 of exporting explosives to Libya, partly on the basis of the affidavit of CIA executive director Charles Briggs -- then the third-highest ranking official in the agency. Wilson had claimed that he shipped 20 tons of C-4 plastic explosives from Houston's Bush/Intercontinental Airport to Libya at the request of the CIA. But in pleadings filed in U.S.District Judge Lynn Hughes' court, the Justice Department acknowledged prosecutor Ted Greenberg had introduced evidence about Wilson that he knew was false. In an affidavit introduced into evidence by Greenburg, Briggs swore "Wilson was not asked or requested, directly or indirectly, to perform or provide any services, directly or indirectly, for the CIA," after he retired in 1971….."

Washingtonpost.mil 1/31/2000 William Arkin "…. Last September, the USS Kamehameha pulled into the port of Aqaba in southern Jordan, the first U.S. Navy submarine ever to visit the Hashemite Kingdom. The next day, the crew "manned the rails" in a solemn ceremony while King Abdullah Bin Al-Hussein and other dignitaries toured the submarine from end to end. …… In fact, the visit was neither tourism nor pomp and circumstance. The purpose was to conduct a very secret military exercise called "Early Victor." Early Victor is just one of hundreds of exercises and operations conducted annually by the U.S. military around the globe…..Coming months will see scores more of such operations including Clean Hunter, Earnest Leader, Inferno Creek, Inherent Fury, Inspired Gambit, Lucky Sentinel, and Ultimate Resolve. The focus of these exercises, according to Pentagon sources, is increasingly counter-terrorism, and counter-narcotics, and counter-proliferation, and counter-propaganda. The number of secret exercises seems to have only grown since the end of the Cold War. Such operations, by their very existence, suggest covert commitments to foreign countries undertaken for the benefit of access to military bases or exchanges of information or "training" opportunities….."

Vitaly Denisov Rossiisky Izbiratel No 25-26 10/99 "....AN INTERVIEW WITH ALEXANDXER KULIKOV, CHAIRMAN OF THE DUMA INTERFACTION ANTI-CORRUPTION COMMISSION WHICH RECENTLY RETURNED FROM THE UNITED STATES. HE SAYS THE COMMISSION HAS EVIDENCE AGAINST NIKOLAI AKSENENKO, WHO SHOULD BE SUSPENDED FROM OFFICE...... Question: In other words, there were no sensations at all? Answer: Well, as for me personally, I never knew that in the mid-1990s the CIA frequently forwarded reports to President Clinton and Vice President Gore on facts of corruption and abuse of power by key figures in the Russian executive power structures. One of the reports specifically identified the then prime minister by name. Nevertheless, the US Administration has never taken heed of the warnings and the "sponsorship" continued. Odd, isn't it?...."

Vitaly Denisov Rossiisky Izbiratel No 25-26 10/99 "....AN INTERVIEW WITH ALEXANDXER KULIKOV, CHAIRMAN OF THE DUMA INTERFACTION ANTI-CORRUPTION COMMISSION WHICH RECENTLY RETURNED FROM THE UNITED STATES. HE SAYS THE COMMISSION HAS EVIDENCE AGAINST NIKOLAI AKSENENKO, WHO SHOULD BE SUSPENDED FROM OFFICE......Question: You claim that some of the money we received from the IMF was embezzled, right? Can you name any specific people? Answer: Our commission studied information on over one hundred instances of embezzlement committed by top officials. Who are they? They are the people everyone knows: Chubais, Chernomyrdin, the Family and its relatives. I'm saying this as Duma deputy, the chairman of the relevant commission, and simply as a Russian citizen….."

The Associated Press and Reuters 1/20/2000 "…..The super-secret National Security Agency confirmed Saturday night that it had a "serious computer problem" last week that affected its ability to process intelligence information. The agency issued a brief statement a few hours after the outage was reported by ABC News, which said its sources characterized the problem as the biggest computer failure in the history of the NSA. "This problem, which was contained to the NSA headquarters complex at Fort Meade, Md., did not affect intelligence collection, but did affect the processing of intelligence information," the agency statement said. "NSA systems were impacted for 72 hours." It said the outage started at 7 p.m. EST Monday and that the system was restored on Thursday……"

Washington Times 1/28/2000 Bill Gertz and Rowan Scarborough "…Some veterans of the supersecret National Security Agency, at Fort Meade, Md., were shocked upon receiving the agency's December newsletter. It revealed that NSA now has its own homosexual employees group. Not only that, the Alan Turing chapter of the Gay, Lesbian or Bisexual Employees (GLOBE) group, named after the English mathematician and World War II code breaker, held its December general meeting at the Country 7 complex building 9914. The building was a motel purchased by NSA for its cryptological museum and is located along the Baltimore-Washington Parkway near NSA's sprawling headquarters building. GLOBE also uses the NSA's e-mail system to contact its members. "A couple of years ago if you had anything like that you would be thrown out," said one retired NSA official, Rigorous security standards at the spy agency until recently regarded employee homosexuality as a security risk. Security officials feared homosexual officials involved in secret code and communications intercept work could be blackmailed by foreign intelligence services and recruited as spies……"

Russia Today 1/25/2000 AFP "…."While working as an operative, one of my main directives was to find drop sites for mass destruction weapons," Stanislav Lunev told the House Committee on Government Reform, meeting here in downtown Los Angeles. "These drop sites were in or near the most densely populated areas, so that they could be retrieved or detonated at any time by ... operatives or special forces soldiers." Lunev was a colonel with the KGB and the Red Army's intelligence wing. He defected to the United States in 1992 and is now in the federal witness protection program……. Russian spies are known to have amassed explosives and weapons caches abroad. And Lunev and another defector have indicated that weapons -- even backpack-sized atomic bombs -- could have been smuggled into the United States and remain hidden. Lunev said he decided to write the 1998 book after learning he had cancer……"

Washington Times 1/24/2000 Bill Gertz "….Meetings between Pentagon officials and a senior Chinese general this week will be the first test of a new law restricting U.S. exchanges with the People's Liberation Army. A provision of the fiscal 2000 defense authorization signed by President Clinton in October is aimed at preventing Chinese military intelligence from gathering defense technology through the Pentagon's military-to-military program with China….. .Gen. Xiong is expected to criticize U.S. plans to sell advanced weaponry to Taiwan and also will oppose U.S. missile defense efforts. Defense officials say he also will ask for the names and punishment of the CIA officials blamed for giving NATO war planners the incorrect bombing coordinates for the Chinese Embassy…… The guidelines limiting military exchanges with China were produced by Sen. Robert C. Smith, New Hampshire Republican, following reports last year that China obtained strategic technology covertly from the United States. The so-called Smith Guidelines state that Mr. Cohen may not authorize any military exchanges involving force projection operations, nuclear operations, advanced combined arms and joint combat operations, logistics activities, chemical and biological defenses, surveillance and reconnaissance operations. It also restricts the Pentagon from discussing any activities related to joint war-fighting experiments, military space issues, advanced military capabilities, arms sales and weapons technology. The guidelines also restrict any access by Chinese officials to Pentagon laboratories……"

Associated Press 1/24/2000 Linda Deutsch "…..Denying he is trying to "create paranoia and a new Cold War," Rep. Dan Burton held a hearing on Russian espionage Monday with an ex-spy testifying and a congressional colleague displaying a mockup of a briefcase-size nuclear weapon. Stanislav Lunev, a former Soviet and Russian spy, was led into the hearing room with a black bag over his head, then was placed behind a screen that shielded him from the audience at the sparsely attended House Committee on Government Reform hearing. Much of his testimony was a repeat of allegations made in his 1998 book in which he alleged that Russia's post-Cold War leaders still see the United States as the enemy…… Weldon, who also testified, stood at one point, holding up a large briefcase and announced: "I have a small atomic demolition device I'd like to bring up to you." Burton quickly reassured the audience that it was "a mockup" created by the CIA. Russian officials have confirmed their arsenal includes such devices, but investigators have said there is no evidence they are part of the purported hidden stockpiles. …… During a break, Burton was questioned by reporters about his motives for the hearings and whether he knows of actual weapons sites in California. "I don't know whether there's anything like that here nor does the administration," he said, but he insisted that the Russians should be asked. When he returned to the hearing room, Burton said, "Some members of the media are indicating we might be trying to create paranoia and a new Cold War. That's untrue. ... I'm distressed that some members of the media think we're trying to scare everyone to death." Burton said he has repeatedly asked the White House and the State Department to investigate the question of weapons caches but they have never responded….."

Freeper tallhappy 1/24/2000 "…. Xiong is the General who told Clinton China "expert" Chas Freeman that once upon a time the US alone had nukes but now China has nukes too and that the US cares more about Los Angeles than Taiwan. In other words, help defend Taiwan and boom boom boom. He also is the immediate superior of the PLA General who met with Johnny Chung and told him they liked Clinton and gave Chung money to launder in to the Clinton Gore campaign. So he is here now. There will most likely be no press conferences or "media availability". Xiong will be aiming to stop arms sales to Taiwan and argue against any Theater Missile Defense, especially not for Taiwan…….. "

DoD News Briefing 1/20/2000 Ken Bacon "…Q: Ken, what are the plans for the visit of the Chinese general next week? I know he's going to meet with Walter Slocombe, but is he going to meet with the secretary? Are you going to have an availability? What about that? Mr. Bacon: Well, he's -- he will have a brief meeting with Secretary Cohen. We don't plan a press availability after that, or before it……. Q: Will Secretary Cohen express regret or apologies for the bombing of the embassy when he meets him? Mr. Bacon: I think we have already done that on many occasions….."

1/24/2000 Greg Torode "…. Lieutenant-General Xiong Guangkai, deputy chief of staff of the PLA, will start three days of talks with Pentagon counterparts in Washington today - resuming a fledgling military dialogue shattered after Nato bombed the Chinese Embassy in Belgrade in May. Three Chinese journalists were killed in the bombing and 20 people were injured. While US officials will be seeking to gently nudge China towards possible confidence-building measures and a greater role in stalling arms proliferation, General Xiong is expected to raise a host of wider mainland concerns…… "

[News Release] No. 668-97 12/10/97 "…..The first-ever Defense Consultative Talks between the United States and the People's Republic of China (PRC) will be held Dec. 11 and 12 at the Pentagon. Under Secretary of Defense (Policy) Walter B. Slocombe will meet with People's Liberation Army (PLA) Deputy Chief of the General Staff Lt. Gen. Xiong Guangkai to build on the successful summit between President Clinton and PRC President Jiang Zemin in the United States in October. The talks were first proposed by former Secretary of Defense William J. Perry to Minister of National Defense Gen. Chi Haotian during the General's visit to the Pentagon in December 1996….."

USAJournal.com 1/23/2000 "….A U.S. defense analyst says the Pentagon may have doctored a surveillance photograph showing a Russian ship firing a blinding laser weapon at U.S. and Canadian military personnel in 1997 as an attempt to provide political cover for a Clinton administration friendly to Moscow. The incident, which occurred off the coast of Washington state in April 1997, involved a joint U.S/Canadian intelligence team sent to observe the activities of a suspicious Russian trawler suspected of spying on U.S. nuclear submarines as they sailed into and out of Puget Sound. The analyst, J. Michael Waller, editor of the American Foreign Policy Council's Russian Reform Monitor, said "at issue is a Navy intelligence photo of a Russian spy ship believed to have fired a laser at a Canadian military helicopter, wounding members of its Canadian-U.S. crew over the waters" off Washington. Writing in this week's issue of Insight Magazine, Waller said a newly-released DoD photo of the incident "differs markedly from the original taken by the wounded U.S. Navy intelligence officer aboard the helicopter. "Details that Navy imagery analysts interpreted as a laser beam had been removed from the official photo," Waller said….."

New York Times 1/25/2000 Judith Miller "….Some of the American money awarded to support Russia's civilian biological research was secretly shifted to Biopreparat, a shadowy organization that once directed the Soviet Union's germ warfare program, several Russian scientists say. ….. A spokesman for the space agency said it would investigate whether any American aid money had been diverted to the organization and would withhold $1.6 million in assistance until Moscow accounted for its spending of previous grants. Officials at A.I.D. said they had not been aware of Biopreparat's history and should have checked with national security officials before approving aid to a joint venture that involved the organization. Russian biologists familiar with Biopreparat said its director, Gen. Yuri T. Kalinin, had shifted at least 10 percent of several NASA grants intended for biological research in space to his organization. General Kalinin has headed Biopreparat since its inception in 1973, and Western officials say he is the focal point of concern among American and British intelligence analysts about whether Moscow has fully given up research into germ warfare and what Acting President Vladimir V. Putin will decide. ….. Russian scientists said General Kalinin had supervised Biopreparat's transition to civilian work after the Soviet Union collapsed in 1991. Western officials say they know little about Biopreparat's operations. But a Biopreparat brochure signed by Yuri T. Kalinin, identified not by military rank but as a "professor, doctor of science," states that the Russian government owns 51 percent of the joint-stock company and that Biopreparat now includes some 20 research institutes and other enterprises that make about 1,000 vaccines, medicines and biotechnology products. ….."

New York Times 1/25/2000 Judith Miller "….Biopreparat also stands to benefit from a grant made by the Agency for International Development in 1997. In a project approved by a Russian-American commission headed by Vice President Al Gore, the aid agency awarded a $6 million grant to a collaboration between the Searle pharmaceutical unit of Monsanto and a Russian institute partly owned by Biopreparat. Officials and scientists say none of the A.I.D. money went directly to Biopreparat. But, they acknowledge, Biopreparat stands to earn a share of the profits if the company's sale of high-quality medicines succeeds. In interviews, administration officials defended the grants. The American money, they say, has helped deter a scientific brain drain to rogue states and terrorists and there is no indication that it was used to support covert germ research. But many national security officials were furious when they first learned of Biopreparat's involvement in the grants last year. "What happened in these cases was outrageous," said a senior national security official who spoke on condition that he not be identified. "A.I.D. and NASA were essentially running their own foreign policy." …."

AP 1/25/2000 "….A longtime employee of the Lawrence Livermore National Laboratory resigned Monday, saying his bosses retaliated against him for reporting safety violations. David Lappa, who worked at the lab for nearly 20 years, said he was suffering "an intolerable pattern of continued reprisal" since 1997, when he claimed the lab was trying to cover up safety problems in its plutonium facility. Lappa served as a consultant to the Department of Energy's investigation into safety problems at the facility in 1997. He felt some of the safety rules had been willfully violated, but the investigating panel disagreed with some of his points and did not include his opinions in its final report….. A U.S. Department of Labor investigation agreed in 1998 that Lappa had been treated unfairly, and the University of California, Lappa's employer, did not appeal the decision. Lappa was awarded compensatory damages and a pay increase….. "They have made it clear at the laboratory that he is not wanted," said attorney Tom Carpenter, who is working on Lappa's case with the Government Accountability Project. "He has been retaliated against repeatedly and his career has come to an end." ……"

AP 1/25/2000 H Josef Hebert "….The lax security that allowed a Los Alamos scientist to transfer and copy hundreds of nuclear weapons codes six years ago has been corrected, but computer security at the labs still is not 100 percent, the Energy Department's top security official said Tuesday. Eugene Habiger, the department's head of security, said he is ''99.5 percent confident'' that America's nuclear secrets are protected from cyber-espionage. ``But when it comes to computer stuff to say impossible is pretty tough,'' said Habiger at a news conference in which the department's top security and counterintelligence officials ticked off dozens of actions taken over the past year to improve protection of nuclear secrets at the weapons labs…… the review by Habiger's office said it is still possible - though increasingly difficult - to remove data from a classified computer system……"

Newsweek International 1/31/2000 "….General Xiong is the most senior Chinese leader to visit Washington since then. Defense officials have high hopes, but other U.S. officials worry the visit could touch off another U.S.-China crisis-over Taiwan. The key issue: the sale to Taiwan of advanced weaponry, including Aegis-class destroyers that could potentially defend the island against China's medium-range M-11 missiles. Xiong is expected to repeat Beijing's warning that a sale could trigger a harsh Chinese response. But the White House is under pressure to approve the deal in order to insulate Al Gore from Bush's charges that the administration is soft on Beijing….."

Washington Post 1/24/2000 Steven Mufson "….To China's critics in Congress, Lt. Gen. Xiong Guangkai has become a lightning rod. As the People's Liberation Army (PLA) deputy chief of staff and director of intelligence, Xiong, 60, was in charge of the Chinese officer who allegedly gave $300,000 to then-Democratic fund-raiser Johnny Chung to donate illegally to the Clinton reelection effort. Xiong also told a visiting American once that China could threaten to drop a nuclear bomb on Los Angeles to deter the United States from intervening in a conflict involving Taiwan. Smith says Xiong could shed light on the theft of technology and many "controversial and still unresolved issues between the U.S. and China." But other analysts point out that Xiong plays a wide role in U.S.-China relations and is a key member of the Chinese Communist Party's "leading group" on foreign policy, Beijing's most important foreign policy-making body. As a result, Xiong's schedule today and Tuesday includes Undersecretary of Defense Walter B. Slocombe, Undersecretary of State Thomas Pickering and other senior national security officials…..some experts say the contacts have backfired, giving China a sense of vulnerability and an incentive to build up its military. Critics say Chinese officers have gained useful intelligence about U.S. equipment, strategy and vulnerabilities. "We let him fly in our planes and visit our ships," said Larry Wortzel, a retired U.S. Army colonel and former military attache in Beijing, now at the Heritage Foundation….."

Los Angeles Daily News 1/25/2000 Steve Carney "…His face hidden beneath a black hood, a former top Soviet spy testified Monday that Los Angeles is still a strategic target for Russia, and that he once scouted locations for weapons caches that Russian commandos could use in a "future war." Stanislav Lunev, speaking at a meeting of the U.S. House Committee on Government Reform, said he doesn't know whether weapons or supplies were ever stashed at the locations he detailed to Moscow. But he and others at the hearing held in downtown Los Angeles said a danger still exists from Russian spies and soldiers, as many leaders in Russia still see the United States as an evil empire, poised to finish off its former Cold War foe. "Russia is not just an indirect threat. It still operates a pervasive intelligence community here in the U.S.," said Lunev, now living under an assumed identity in the federal Witness Protection Program. He added that the widening military and economic gulf between the United States and Russia is only increasing the paranoia of leaders in Moscow, who are still planning for possible conflict with the West. "San Francisco and Los Angeles are strategically important targets for the future war," Lunev said….."

Los Angeles Daily News 1/25/2000 Steve Carney "…Lunev was a colonel in the GRU, the intelligence agency of the Soviet military, before he grew disillusioned and defected in 1992. Posing as a correspondent for Tass, the Soviet news agency, Lunev worked out of the Soviet embassy in Washington, D.C. Among other duties, he said he compiled dossiers on government leaders as possible assassination targets, and scouted locations for "dead drops," secret sites where agents could leave money, information or weapons……."Now is a good time to think about American national security," he said. "A little bit later, it may be too late." …."

Reuters 1/25/2000 Tabassum Zakaria "…. The CIA's chief of intelligence analysis said he is concerned about growing evidence of ''secondary proliferation'' as countries striving to obtain nuclear, biological and chemical weapons share information with other aspirants. ``I would say the problem of proliferation of weapons of mass destruction is becoming more complex and difficult,'' CIA Deputy Director for Intelligence John McLaughlin said in a recent interview with Reuters at CIA headquarters…… ``As the systems mature in the obvious countries like North Korea and Iran, they themselves have the potential to start becoming sources of proliferation as distinct from aspirants. And that begins to complicate the whole picture,'' McLaughlin said. …… The CIA's job of monitoring potential overseas threats to the United States has become more difficult as adversaries become more masterful at ``denial and deception,'' McLaughlin said…… He said there are 16 or 17 countries developing biological and chemical weapons that the CIA watches closely, alert for signs of any deployment plans in areas such as the Middle East where U.S. forces are based……. ``It requires constant vigilance, constant work, and they will wait for us to be exhausted, they will wait for us to be distracted. Everyone in this business has to be on their toes on this,'' McLaughlin said. ``I can't guarantee you that this is over. I can just say we've had some success and we continue to work the problem….."

Washington Times 2/10/00 Robert Charles ".....In what seems a cascade of avoidable security breaches by the Clinton administration, a gradual fog of carelessness, dismissiveness, indignation and indifference has quietly settled over the guardianship of our national security. Gone is the new dawn. Here is a frightening disconnect between high-placed guardians of our nation's secrets and the unforgiving nature of foreign security threats. Last week, CIA Director George Tenet told a Senate committee that his predecessor, John Deutsch, was "sloppy" when Mr. Deutsch reportedly took highly classified documents home, put them on his home computer, used the same computer to access Internet (pornography) sites and received e-mail from a "former Russian scientist." In response, Mr. Tenet "stripped Mr. Deutsch of his security clearances" last August, 32 months after a CIA investigation into Mr. Deutsch's "computer practices" began in December 1996. How could a high-ranking administration official, much less the acting director of the CIA, not have known classified documents do not leave the office, in fact are routinely re-placed in a pre-approved safe? How could such an official not have known his home computer is not secure, indeed is a likely hacker target? How could he not have been briefed on the vulnerability of his hard drive to outside intrusion?….."

AP 2/9/00 Ted Bridis "….Internet vandals continued an unprecedented campaign of electronic assaults against the biggest names in cyberspace, disrupting access for consumers to the some of the Web's most popular sites……. "The whole thing happened so quickly," said Mitch Hill, the company's chief financial officer. He said the attacks were traced to powerful computers in Boston, New York and Chicago, and that Buy.Com planned to contact the FBI today. …… Among the Internet underground, where craving for publicity often fuels dramatic attacks against high-profile computers, no one claimed responsibility for the moves against eBay, Amazon, Yahoo! or Buy.Com. ….. The nationwide spread of the atacking systems, coupled with the anonymity of the attackers, suggests spooks, rather than hackers, are testing their ability to paralyze the net on demand. ….."

Via Drudge : vny.com 2/9/00 Michael Kirkland UPI "…..The FBI's National Infrastructure Protection Center is moving to counter repeated cyber-attacks against commercial sites on the Internet, sources told United Press International Wednesday. The involvement of the elite center in the investigation signals that Internet commerce, which is helping to drive U.S. economic prosperity, has been shaken by the attacks. NIPC, pronounced "Nipsy" by most FBI officials outside the unit, entered the fray after computer experts from the bureau's San Francisco field office conducted an initial investigation. The "denial of service" cyber-assaults began with Yahoo on Monday. The Web's most popular site was effectively taken out of action for more than three hours. A massive wave of information requests apparently generated by one or more hackers overwhelmed the site, denying service to anyone trying to access it. But the attacks continued Tuesday against other major Internet commercial sites, though the assaults did not appear to be as severe as the one against Yahoo. ….."

ABCNEWS.com 2/9/00 Barbara Starr "…..At the CIA and on Capitol Hill, officials are expanding the investigation into whether former CIA Director John Deutch compromised national security. The Senate Intelligence Committee on Tuesday heard testimony from CIA Inspector General Britt Snider detailing how the agency conducted its review of Deutch once it discovered he had 235 pages of classified material on three unsecured home computers. …… The CIA learned of the problem when Deutch left his job in December 1996. Security personnel investigated the matter for several months, but it was not until 18 months later that Congress was notified. …… Although Snider was portrayed as candid and forthcoming at the hearing, some sources said that committee members were "pretty disturbed by what they were hearing." One source said the CIA has no real explanation for the Deutch investigation took so long. The committee has raised the prospect of a double standard in which a senior official is not penalized for actions in the same way as a junior officer…….. Congress also has asked for an unclassified version of the Inspector General's report but it is not clear if the spy agency will agree to that request. In an attempt to resolve the problem, the CIA has asked Warren Rudman, a former senator and chairman of President Clinton's Foreign Intelligence Advisory Board, to review the findings of another internal CIA panel that looked into the Deutch affair. The ultimate result could be disciplinary action against current or former officials……… The CIA recently discovered that another one of its employees had done classified work on his home computer for more than 10 years. That computer also was used to visit more than 100 Russian Web sites. The CIA first put the employee on leave without pay and then reduced his rank. ….."

The New York Times 2/8/00 Kevin Max "….Buy.com, eBay and CNN were severely hampered by computer hackers Tuesday, one day after Yahoo came under a similar attack. The hackers' action against Buy.com may have been timed to coincide with its stock market debut on Tuesday, in which Buy.com's shares closed at nearly double the price of their initial public offering. The online retailer said its site was disrupted for more than 3 1/2 hours during the afternoon. The hackers shut down eBay's Internet auction site around 6 p.m. EST, and it did not appear to be working around 8 p.m….."

PR Newswire 2/13/00 "…..CIA Director George Tenet tells Newsweek that foiling computer hackers is a top law-enforcement priority, with the Pentagon, FBI, CIA and the National Security Agency (NSA) all searching for ways to stay one step ahead of a sophisticated, and often unseen, enemy……. Washington Correspondent Greg Vistica reports that in recent years, officials have also secretly observed attempts by foreign countries to penetrate U.S. government computers. According to one study, at least 13 countries have ``information warfare'' programs directed against the United States. ``It's the Chinese, the French, Israelis, attacking American targets and doing it quite successfully,'' says one NSA official. The NSA's computers crunch information from America's spy satellites and global eavesdropping network. Last year, Russian hackers successfully penetrated gaps in Pentagon computer security, and made off with at least some classified material…… U.S. officials acknowledge that they catch only about 10 percent of those who probe or penetrate government computers. But they're working to increase the numbers by beefing up surveillance, installing intruder-detection programs and limiting the number of people with computer access to sensitive information, Vistica reports in the February 21 issue of Newsweek (on newsstands Monday, February 14)……"

Washington Times 2/11/00 Bill Gertz Rowan Scarborough "…..No agency in the Clinton administration, it seems, is immune from forced "diversity" programs. Many in government view them as a way of promoting affirmative action covertly following the backlash against reverse discrimination. Now the CIA is getting into the act. We obtained a copy of CIA Director George J. Tenet's diversity program for all U.S. spy agencies: "DCI Diversity Strategic Plan: A Functional Plan That Supports the DCI's Strategic Intent." DCI stands for director of central intelligence. The October 1999 plan is seven pages and never mentions the word "merit" as a goal or condition for promotion. Mr. Tenet stated in a cover letter to all intelligence officials that "This is not a matter of political correctness." Diversity, he said, is a "corporate imperative" for being better spies. "I challenge each and every one of you to join me in increasing and nurturing diversity within our ranks," he said. Here are some of the management policies:

* "Provide mandatory diversity and [Equal Employment Opportunity] training for all selection board/panel members."
* "Improve the representation of women and minorities at all levels of the intelligence community to reflect the civilian labor force."
* "Promote and advance women and minorities at a rate at least consistent with their representation in the relevant labor force."….."

Washington Post 2/11/00 Tom Raum "…..Suspected Russian spy Stanislav Gusev had a willing accomplice, if not in espionage, then at least in parking. Gusev, accused of electronic eavesdropping on State Department conversations from his car, did not get those choice spaces outside the building solely through parking prowess, suggested David Carpenter, the department's top security official. Carpenter told a Senate hearing on Thursday that Gusev aroused suspicions of State Department security officials when he was noticed being in the vicinity of the building two or more times a week, where he "walked the streets and fussed about in his car." He parked as close as possible to the building whenever he could find an available space, Carpenter said. "Once we realized what he was doing, space was always available," Carpenter said. The United States expelled Gusev in December after a listening device was found in a seventh floor State Department conference room. Gusev allegedly listened in his car to transmissions from the device. ….."

New York Times 2/12/00 James Risen "…..John M. Deutch, a former director of central intelligence, recommended a top C.I.A. official for a high-paying job at Citibank even as she was monitoring an internal investigation into evidence that Mr. Deutch had mishandled classified information, according to agency records and interviews with officials. Mr. Deutch resigned as director in December 1996 and was almost immediately elected to the Citibank board. That same month, C.I.A. computer security officials uncovered evidence that he had placed large amounts of classified information on nonsecure computers at his home. Nora Slatkin, the former executive director of the C.I.A., notified the agency that she was considering a position at Citibank while she was still monitoring the Deutch case inside the agency, records of the agency show. A classified review by the agency's inspector general of the handling of that case found that actions by Ms. Slatkin "had the effect of delaying a prompt and thorough investigation of this matter." Ms. Slatkin resigned from the agency in September 1997 and joined Citibank as a vice president in October 1997…..On June 27, 1997, she officially notified the agency that she was withdrawing from consideration of any matters involving Citibank because she was thinking about taking a job with the bank, according to agency records. Yet in July 1997, she reviewed a secret report from C.I.A. security officials on their findings in the Deutch investigation, according to the classified report from the agency's inspector general. …."

CIA Website 2/2/200 George Tenet "…. Finally Mr. Chairman, before I end this chapter on transnational issues, let me note the especially threatening nature of a relatively new phenomenon-information warfare. I say especially threatening because as this century progresses our country's security will depend more and more on the unimpeded and secure flow of information. Any foreign adversary that develops the ability to interrupt that flow or shut it down will have the potential to weaken us dramatically or even render us helpless……This is one of the most complex issues I've put on the table, Mr. Chairman, but, simply put, information warfare has the potential to be a major force multiplier. And why is this?

* It enables a single entity to have a significant and serious impact.
* It is a weapon that "comes ashore" and can effect the daily lives of Americans across the country.
* It gives a force projection capability to those who have never had it before, and it can be used as an asymmetric response.
* It will be a basic capability of modern militaries and intelligence services around the world in the near future and of secondary players not long thereafter……..

All of this amounts to one of the "cutting edge" challenges for intelligence in the 21st century. We are working on means of prevention, warning, and detection, but as in so many areas in this technological age, Mr. Chairman, we are truly in a race with technology itself.

CIA Website 2/4/00 John Gannon "…...In fact, the world and the workplace of the CIA analyst have changed more in the past decade than in the previous 40 years of the Agency's existence. The single strategic threat from the Soviet Union, a remarkably stable intelligence target throughout the Cold War, has gone and is not coming back. ……..First, a networked global economy will be a net contributor to increased political stability in the world. US national interests will increasingly be tied to our dependence on global networks that ensure the unrestricted flow of economic, political, and technical information, as well as people, goods, and capital-which, by the way, is my definition of "globalization." …… Second, global change in the decades ahead will broaden our definition of "national security" and expand the US intelligence agenda in both the numbers and complexity of issues we cover. In 15 years, CIA will still be focused on the proliferation of weapons of mass destruction, terrorism, narcotics, and organized crime. But newer issues, such as information operations and threats to our space systems, will command a growing amount of our time…….. Third, technology will challenge us in every area of the intelligence business to be smarter, more agile, more responsive to the policymakers we serve, and more collaborative with experts, wherever they may be found - in academia, the private sector, and non-governmental organizations (NGOs)…….. Fourth, the intelligence business is fundamentally about skills and expertise, and this means people-people in whom we will need to invest more to deal with the array of complex challenges we face over the next generation. This, you may know, is one of George Tenet's highest priorities. No system or technology by itself will enable us to master the new threat environment that I am describing tonight or the glut of information we will face in the years ahead. We will need a skilled and expert workforce enabled by technology and armed with the best analytic tools...."

Washington Times 2/4/00 Bill Gertz Rowan Scarborough "…. U.S. intelligence agencies detected what some officials are calling an "unprecedented" deployment of two Russian submarines off U.S. coasts last year. The first Russian Oscar II-class submarine sailed from northern Russia last summer to the Mediterranean, then on to areas off the eastern United States. "We played with it," said one military officer, referring to the silent underwater tracking efforts of U.S. hunter-submarines……. U.S. intelligence analysts viewed the unusual submarine deployments as Russia's negative reaction to NATO's bombing campaign in Kosovo. "The Russians were saying 'We're still a power,' " the official said. The boats are among Russia's most modern and lethal attack submarines. They are equipped with 24 SSN-19 Shipwreck cruise missiles and high-explosive or nuclear warheads that travel up to 345 miles at nearly twice the speed of sound. The submarine also is capable of firing long-range torpedoes that can home in on the wake of a ship and can travel at speeds up to 30 knots…….."

Washington Post 2/5/00 Walter Pincus "….. Former CIA director John M. Deutch still has a Pentagon security clearance that allows him to work on classified defense contracts, despite having violated security rules by keeping government secrets on home computers connected to the Internet. The clearance permits Deutch to serve as a paid consultant on Defense Department contracts with Raytheon Corp., SAIC Corp. and the Massachusetts Institute of Technology. Deutch, now a professor at MIT, also sits on eight corporate boards. George Tenet, Deutch's successor as CIA director, announced last summer that he had stripped Deutch of his CIA security clearance as a penalty for keeping classified documents on ordinary home computers that were not protected by locks, encryption or other security devices. At that time, the Pentagon also suspended Deutch's security clearance from the Defense Intelligence Agency, the nation's main military intelligence service, and did not renew his clearance to serve as a member of the Defense Science Board, a high-level panel of scientists who advise the Defense Department on research projects. But Deutch never lost his industrial security clearance, a Defense Department spokesman said yesterday in response to inquiries from The Washington Post. …."

CBSNEWS.com 2/4/00 "…."The counterintelligence people, it's like The Invasion of the Body Snatchers. They just come and get you one day," says Adam Ciralsky to 60 Minutes' Lesley Stahl about the day the CIA informed him that he was under investigation. In his first interview, to be broadcast on Sunday, Feb. 6, on CBS, the former CIA lawyer says he's not a spy and was targeted for investigation because he is a religious Jew. 60 Minutes has been told by current and former intelligence sources that ethnic profiling along the lines alleged by Ciralsky has become a tool used by the nation's spy catchers to root out traitors. An example of the CIA's ethnic profiling, Ciralsky says, was the agency's creating of what he calls a "Jewish resume." In a background summary of his life, Ciralsky says, the CIA ignored all secular information about him in favor of the religious, mentioning his college minor in Judaic studies but leaving out his international affairs major, and pointing to his Hebrew study while ignoring his Spanish classes. ..."

Times of India 2/4/00 "…. Tenet went down the long list of threats facing the US:
-- The missile threat to the US from states other than Russia or China, which includes Iran, North Korea, Iraq and Syria, is steadily emerging.
-- The spread of technology such as computers and guidance equipment means an increasing risk of substantial surprise for any attack on the US.
-- The threat of terrorism remains and in some ways becomes larger due to cooperation between various terrorist groups and their ability to finance themselves with narcotics sales.
-- Terrorist groups are more able to engage in ``information warfare'', attacking computer-based supply and control systems in the US from anywhere on the globe. It is a weapon ``that comes ashore'', affecting the daily lives of Americans across the country. ….."

San Francisco Examiner 2/8/00 George Koo "…..Recent revelations allow a detailed comparison of the cases of two men accused of breaching national security, John Deutch and Wen Ho Lee. We can now judge whether there are grounds for the accusation made by Lee's defense team and supporters that the government is engaged in selective prosecution. Lee: At the bail hearing for the former scientist at the Los Alamos National Laboratory, government prosecutors contended that he had downloaded "massive" amounts of secret data into an unsecured personal computer in his office, which is why his case is so serious. Deutch: According to news reports, investigators found 17,000 pages of top-secret files in unsecured computers in the home of the former director of the Central Intelligence Agency. Since Lee's prosecutors did not define "massive," we can only speculate whether 17,000 pages constitute a massive breach by Deutch. According to the prosecutors, Lee mishandled enough data to allow someone to design a nuclear bomb. In Deutch's case, the data reportedly dealt with "some of the government's most sensitive covert operations." ..."

New York Times 2/6/00 Raymond Bonner "…..Although the former director of central intelligence, John M. Deutch, had his security clearances revoked by the Central Intelligence Agency and the Defense Intelligence Agency, he has kept a security clearance at the Pentagon, a senior Defense Department official says. Mr. Deutch's intelligence clearances were revoked last year because he had violated security rules by keeping classified information on computers at his house that were connected to the Internet, making them vulnerable to entry by hackers. The Pentagon has not taken similar action in part because it has not been given the C.I.A.'s report that resulted in the action against Mr. Deutch, the Defense Department official said. The Pentagon first asked for the report after it was completed last summer, the official said. The department renewed its request on Friday….."

US News 2/5/00 Warren Strobel "….At 7 p.m. on January 24, the massive electronic brain of the U.S. intelligence system hiccuped, sighed, then shut down. In a twinkling, billions of dollars' worth of supercomputers, high-speed modems, and top-secret electronics fell silent. The central data network of the National Security Agency in leafy Fort Meade, Md., would remain that way for an agonizing three days-an unprecedented event in the history of the nation's intelligence services. The computer failure illustrates the perilous state of the NSA, but it also shows how America's role in the high-stakes game of intelligence collection has changed since the end of the Cold War. During the decades-long face- off between Washington and Moscow, human spies grabbed the headlines and captured the public's imagination. But it was in the field of signals intelligence-SIGINT in the argot of the spy trade-where America had the real edge. ……. Ironically, this should be the golden age of electronic espionage. Global com- munications have explod- ed in a dizzying array of mobile phones, Internet nodes, and computer networks, providing rich targets for Fort Meade's electronics wizards. But the NSA seems ill-prepared for the new opportunities. The world it once knew so well suddenly went C2C-that's geekspeak for "computer to computer," a networked planet where good guys and bad guys communicate on the same electronic grid. The NSA, however, still relies heavily on eavesdropping satellites built for the Soviet era. The result? The NSA intelligence "catch" becomes less useful each year. ….."

Philadelphia Inquirer 2/5/00 Jonathan Landay "…..The Senate intelligence committee yesterday asked former CIA Director John M. Deutch to explain why he stored memos to President Clinton, details of covert operations and other secrets on home computers that were used to access the Internet. "This is strange behavior, very suspicious," said Committee Chairman Richard C. Shelby (R., Ala.). "It's unprecedented, to my knowledge." Deutch, he said, was invited to testify in private Wednesday about his home computer practices, but it was not known if he would agree. ……"

USA Today 2/7/00 Edward Pound "…..Defense Secretary William Cohen, in his first comments on the Pentagon's troubled security-clearance program, said he is committed to ensuring that clearances be given "only to those individuals who meet the appropriate standards." Responding to criticism from Sen. Tom Harkin, D-Iowa, who has demanded reforms in a Pentagon agency that has given clearances to felons and others with serious problems, Cohen said the Defense Department is taking steps to improve the clearance program's effectiveness, In a letter to Harkin, Cohen wrote; "I share your concern that security clearances be granted only to indi-viduals who demonstrate the trustworthiness and loyalty that access to classified information demands." An attached report prepared by Cohen's staff said the Defense Department is "exploring several options and initiatives" to improve the operations of the Defense Office of Hearings and Appeals, or DOHA, the Pentagon agency under fire. The report did not spell out those initiatives….."

S.F. Examiner 2/7/00 "…..The secret-file sloppiness of a former intelligence director gives the Taiwan-born scientist a case for comparison Wen Ho Lee is not thanking his lucky stars as he sits in jail charged with mishandling computerized nuclear secrets while employed as a scientist at the Los Alamos National Laboratory. But he may be the lucky beneficiary of a "they-all-do-it" defense in the further revelations of CIA laxity toward a blatant security lapse by former Director of Central Intelligence John Deutch. A new account of the Deutch affair and the CIA's timid response to it is contained in a report by the agency's inspector general. The internal investigation of Deutch began as he was leaving office in December 1996, when CIA security experts discovered he had put large amounts of secret material on the hard drives of home computers that were also used to access the Internet (including porn sites) along with millions of other America Online customers. …."

Washington Post 2/7/00 David Briscoe "…..The Pentagon is examining whether to end all security clearances for former CIA director John Deutch, Defense Secretary William Cohen said Monday. Cohen acknowledged for the first time that Deutch has maintained access to "some top-secret information in terms of a narrow area of technology," even though the CIA revoked his clearances at the agency last summer because he had kept classified documents on a home computer. The Pentagon's inspector general has now asked the CIA for its evidence on Deutch's security breaches, Cohen said at a news conference. "I think it should have been done sooner, but it was not," Cohen said. He said the CIA apparently had offered no information about Deutch previously, so his industrial security clearance at the Pentagon was not reviewed. Limited industrial clearances are normally given to defense contractors….."

CBS News 2/7/00 "….. en Ho Lee either passed -- or failed -- his first spy-related polygraph, depending upon who was interpreting the results. …….The FBI still wasn't close to making an arrest or even beginning an interrogation, but the DOE's head of counterintelligence, Ed Curran, was reluctant to leave Lee in his highly sensitive job in the lab's X-Division, so he ordered the polygraph test. FBI agents were standing by during the DOE test, ready to interrogate Lee if his polygraph answers proved to be deceptive. …… The polygrapher concluded that Lee was not deceptive. Two other polygraphers in the DOE's Albuquerque test center, including the manager, reviewed the charts and concurred: Lee wasn't lying…… Several weeks after the polygraph, the DOE decided to assign it the unusual designation of "incomplete." Officials in Washington also ordered a halt to Lee's re-instatement to the X-Division. When FBI headquarters in Washington finally obtained the DOE polygraph results yet another interpretation was offered: that Lee had failed the polygraph. ……The FBI then did its own testing of Lee, and again claimed that he failed. Yet sources say the FBI didn't interrogate Lee at this time, or even tell him he had failed the polygraph -- an odd deviation from procedure for agents who are taught to immediately question anyone who is deceptive in a polygraph….."

WorldNetDaily/LewRockwell.com 2/10/00 Lew Rockwell "…..The deadly three-day shutdown at the National Security Agency in late January has government spy masters in a panic -- not so much about the agency's incompetence and technological backwardness, but the fact that its problems have become public. The eyes and ears of the decrepit and dying state apparatus -- costing billions to acquire and maintain -- just ain't what they used to be (if they ever were). The NSA has traditionally been the most respected and feared bureaucracy in the world…. Now, thanks to a thrilling article in US News and World Report, it has been revealed as just another government bureaucracy, swarming with incompetents in lifetime jobs who spend all their time worrying about their perks and sniping at coworkers. And even with ultimate job security (you can't be fired), employees are bailing out by the day (7,000 so far) to find productive employment in the private sector. ……. "

The New York Times 2/10/00 Matt Richtel Joel Brinkley "….As anonymous assaults on major Web sites continued yesterday, computer vandals crippled a large online brokerage operation and a media site. The Justice Department pledged to find those responsible, but computer experts questioned whether any defenses could easily be deployed against the attacks. On the third day of what increasingly appeared to be a well-planned and tightly coordinated siege by a single individual or group, the impact of the attacks deepened. In addition to damaging commerce at the sites that have become targets, the attacks slowed traffic in some portions of the Internet. ……Indeed, security experts say the attacks appear to have been weeks or months in the planning, since they require clandestinely loading software onto dozens, if not hundreds of computers around the Internet. …."

Washington Post 2/14/00 John Schwartz "….. As the White House prepares to bring technology and business leaders together with government officials tomorrow to discuss the Internet's vulnerabilities, last week's attacks against popular online sites have renewed calls to rein in the World Wide Web's freewheeling culture. On Wednesday, Sen. Judd Gregg (R-N.H.) will hear testimony from Attorney General Janet Reno and FBI Director Louis J. Freeh about whether law enforcement agencies are getting the funding needed to challenge of online crime. At news briefings last week about the attacks, which in each case slowed or blocked online traffic for a few hours, Justice Department officials reiterated their pleas for $37 million in additional funding to expand efforts to police the Internet. The funds would be part of more than $2 billion the Clinton administration has requested for fiscal 2001 to protect against hacking and online terrorism. "We are developing the personnel and technical expertise to investigate and prosecute cybercrime," Reno said Wednesday. The next day, Deputy Attorney General Eric Holder called for tougher criminal penalties for hacking offenses…….. "

United Press International 2/14/00 "…..The former head of the Justice Department's intelligence division was not prosecuted even though he admitted that he leaked classified information about FBI eavesdropping operations against a Japanese extremist group…….. The fact that nothing happened to Scruggs angered some Justice Department officials, the Times reported……… According to the newspaper, Scruggs provided authors Jim McGee and Brian Duffy with details of the planting of eavesdropping devices by the FBI in the New York office of Aum Shin Rikyo shortly after the group launched a poison gas attack on the Tokyo subway system in 1995. Scruggs' approval was needed before the FBI could proceed……… "

Space News 2/7/00 Brian Berger Simon Saradzhyan "…..The top scientist at the state-owned drug company Biopreparat here has denied allegations that some of the $1.6 million received by the company from NASA in the mid-1990s was used to develop biological weapons. A Biopreparat official acknowledged in an interview with Space News that the organization received NASA money via the Russian Aviation and Space Agency (Rosaviakosmos), but denied the company is involved in biological weapons research. "TTds is delirious ... we are not dealing and we will not deal with biological weapons," said Mikhail Grigoryev, deputy head of Biopreparat. Grigoryev is in charge of the company's scientific programs. Biopreparat, created in 1973, consists of 32 biological research institutes, design bureaus and plants that employ 40,000 people throughout Russia, Grigoryev said. A Jan. 25 article in The New York 7Ymes quoted unnamed Russian scientists who said U.S. money intended to support civilian biological research was shifted to Biopreparat, which directed the Soviet Union's germ warfare program. The newspaper also quoted unnamed U.S. national security officials who said they are concerned that Biopreparat continues to conduct germ warfare research. ….."

World Net Daily 2/15/00 Anthony LoBaido "….A computer hacking group modeled after the legendary "Hong Kong Blondes" now claims -- after its December warning in WorldNetDaily that it intended to hack CNN and other major Western websites via "Denial of Service" methods -- that it is responsible for the recent attacks on CNN.com, Buy.com, eBay, Yahoo!, Amazon.com and other major sites. In "The Beijing hack attack," a WorldNetDaily exclusive report on the Chinese group founded by super-hacker Blondie Wong, WND reported that a new satellite group identifying with the "Blondes" had sprung up in Thailand. The report noted that the anti-communist hacking group promised to target not only Communist China, but also top Western corporations, including CNN. The stated purpose of this consortium of hackers: to stop the government of Communist China from persecuting its own citizens, and to protest against Western transnational corporations that do business with China. ….."

Washington Times 2/25/00 Bill Gertz Rown Scareborough "…..Pentagon officials recently rejected a proposal drawn up by Ronald Montaperto, chief Sinophile at the National Defense University (NDU), for a congressionally mandated center to study the threat posed by China. Officials familiar with the plan said Mr. Montaperto's proposal lost out because it would have produced the exact opposite of what was called for in legislation that authorized the center. Instead of providing members of Congress with a place to go for unfiltered intelligence about China, the Montaperto-designed center would have become what critics called an "anti-threat" center. It would downplay the Chinese military threat, like missile deployments and new weapons purchases…… Mr. Montaperto also was rejected as the proposed center's director because the legislation requires someone with Chinese language skills. "The Montaperto plan was even too extreme for the Clinton administration," one official told us……By rejecting the Montaperto plan, the Pentagon has put the NDU chief, Gen. Richard Chilcoat, out on a limb. Under the law establishing the center, he has until Wednesday to come up with another plan…….. And speaking of intelligence on China, some defense officials were heartened that longtime Sinophile John Nixon retired last month as the Defense Intelligence Agency's top China analyst. The bad news, however, is that another pro-China analyst and Nixon protege is getting the job. Army Lt. Col. Lonnie Henley is expected to assume Mr. Nixon's former post of defense intelligence officer for East Asia in the near future, a spokeswoman said……."

Inside China Today 2/24/00 Reuters "…..A fired U.S. government physicist charged with copying nuclear weapons data plans to argue in his trial that the information was public rather than top secret, according to court documents made public on Wednesday. Wen Ho Lee expects to show that computer tapes and files he made were copies of scientific work already published with the government's permission, defense attorneys Mark Holscher and John Cline said in a court filing. …… Lee was not charged with espionage. According to the defense memo, Lee plans to attack the government's claims that the data he copied off Los Alamos computers were national security secrets. "Dr Lee expects to establish at trial (possibly through his own testimony) that the computer codes and other information in the files and on the tapes, far from being carefully protected 'crown jewels', as the government contends, were readily available in open literature, much of it published with the knowledge and approval of the national laboratories and the federal government," the memo said. It added that Lee himself may "present a detailed, side-by-side comparison of the contents of the files and tapes on the one hand and the open literature on the other". ….."

Russia Today 2/24/00 Reuters "……The Central Intelligence Agency said on Wednesday it was picking up growing signs that countries such as Russia and China were developing tools to attack commercial computer networks at the heart of U.S. might. "We are detecting with increasing frequency the appearance of doctrines and dedicated offensive cyber warfare programs in other countries," John Serabian, the CIA's "information operations issue manager," told Congress. He cited public statements by a Chinese general and a senior Russian official - neither named in his testimony - to illustrate what he called the importance of "information warfare" in coming decades. No other country was identified by name as developing such cyber weapons. But the CIA official said, "The battle space of the information age would surely include attacks against our domestic infrastructure." ….."

Associated Press 2/24/00 "….The Justice Department, which earlier declined to bring criminal charges against former CIA Director John Deutch for home computer security breaches, is taking a new look "to see whether there is any basis for further action," Attorney General Janet Reno said Thursday. Reno said the inquiry would cover both Deutch's conduct and the CIA's follow-up. Top members of the Senate Intelligence Committee welcomed Reno's new interest but said they would move ahead with their own inquiry. "It's sad she didn't take a closer look at it earlier, because something is wrong and we're going to get to the bottom of it," said the committee chairman, Sen. Richard Shelby, R-Ala. He said the committee, which heard from Deutch earlier in this week, is turning more attention to why it took the CIA 18 months to notify congressional oversight committees after the agency discovered in December 1996 that Deutch had mishandled classified material. "This is inexplicable to me and to others on the committee," Shelby said, suggesting "possibly a cover-up." "There are a lot of unanswered questions," said Sen. Richard Bryan of Nevada, the committee's vice chairman and senior Democrat. ….."

UPI 2/24/00 Michael Kirkland "…..The Justice Department indicated Thursday its review of security allegations surrounding former CIA Director John Deutch has entered a more serious stage…… Speaking on background, an official said the department's criminal division was now conducting the review of Deutch, who has admitted to mishandling classified documents on his home computer. There was no sense at the Justice Department that the review was targeting some specific allegation of a crime, either by Deutch or those agency officials who delayed sending a CIA inspector general's report on the matter to department offificials. However, the new criminal division review of all the facts surrounding the Deutch admission marks a distinct departure from the department's earlier stance, when officials said they were merely reviewing the CIA's report……"

UPI 2/23/00 "….. For more than a year and a half, high-ranking officials at the Central Intelligence Agency hid the fact that former director John Deutch stored dozens of highly classified documents on a home computer described as "highly vulnerable" to hacker attacks, according to an internal CIA report released Tuesday. "Despite knowledge [of prohibitions and vulnerabilities], Deutch processed a large volume of highly classified information on unclassified computers, taking no steps to restrict unauthorized access to the information and thereby placing national security information at risk," the report said. Though internal investigators, who were prevented from formally questioning Deutch by CIA lawyers, have so far concluded that there is "no clear evidence" that the data was stolen from Deutch's computer, the report concedes that accessing the data would not have been "particularly difficult." The report, compiled by the agency's Office of Inspector General, was released as members of the Senate Select Committee on Intelligence met with Deutch behind closed doors. After the closed session, committee Chairman Richard Shelby, R-Ala., said lawmakers were "deeply troubled by [Deutch's] behavior and actions" and said the committee hadn't ruled out prosecuting Deutch......."

The Washington Post 2/20/00 Colum Lynch "…… Four years ago, when he was director of central intelligence, John M. Deutch headed up American efforts to overthrow Iraqi President Saddam Hussein. Today, Deutch sits on the board of Schlumberger Ltd., a multinational company that is helping Baghdad service its oil rigs. As secretary of defense during the Persian Gulf War, Richard B. Cheney played a key role in the U.S.-led military coalition that forced Iraq to retreat from Kuwait. But as chief executive officer of Halliburton Co., a Dallas-based maker of oil equipment, Cheney recently held a major stake in Dresser-Rand and Ingersoll-Dresser Pump Co., two American players in the reconstruction of Iraq's oil industry……. Though perfectly legal, the growing U.S.-Iraqi commerce has been kept quiet by both sides because it seems to fly in the face of Washington's commitment to "regime change" in Baghdad and Saddam Hussein's claim to be defying the world's lone superpower. The United Nations also helps both countries avoid embarrassment by treating the business arrangements as confidential……"

THE WASHINGTON TIMES 2/18/00 Bill Gertz "…….The Pentagon cannot explain how former CIA Director John Deutch placed highly classified defense information on his unprotected home computers, a spokesman said Thursday. "How could classified material have gotten onto an unclassified system? . . . How did this happen?" asked Rear Adm. Craig Quigley, the spokesman of two investigations being conducted by the department. "Just how did that material get to where it got?" The spokesman was responding to a report in The Washington Times that the Pentagon is investigating whether Mr. Deutch compromised ultrasecret special access programs, known as "black programs" because they are so secret, by placing details about them on his home computers………. "We're reviewing paper that was provided to us by the CIA that they felt pertained to DOD equities," Adm. Quigley said. "If it was a subject that we would care about, we were provided paper by the CIA that says,'Here, this is what we know, this is what we found. You guys do with this what you will.' "

THE WASHINGTON TIMES 2/18/00 Bill Gertz "…….……. Adm. Quigley said the inspector general's office has been hampered by the sensitivity of the material. "In other words, the inspector-general personnel that are accomplishing this part of the review don't necessarily have the requisite security classification, the security clearance, to review the material," he said. The second review is being carried out by various elements of the Pentagon who have all the needed security clearances to review the material. Special access programs include some of the Pentagon's most sensitive information. Past programs have included special high-technology weapons and special intelligence collections systems………… Asked why the sensitive information, which was discovered in early 1997, was only supplied to the Pentagon 11 days ago, Adm. Quigley said, "I don't know that we had a full understanding at that point of what information may have been involved that was relevant to the Defense Department." "First, we need to understand what the material that we received from the CIA contains. Where does that point us for future directions and courses of action? We just don't know yet until we're done reviewing that," Adm. Quigley said......."

Defense Information and Electronics Report 2/18/00 Anne Plummer "….. In what some say is a wiretap-heavy White House budget request, the Pentagon is in line for $120 million it would use to reimburse telecommunication companies willing to modify equipment to enable electronic surveillance. The funds match those offered by the Justice Department, bringing to $240 million the White House hopes to spend in fiscal year 2001 to facilitate court-ordered wiretaps. The Defense Department's decision to contribute to such a fund, however, has raised red flags for privacy groups and one lawmaker who contends the money is being spent to enable the National Security Agency -- the Pentagon's foreign intelligence arm -- to conduct electronic surveillance within the United States. A Pentagon spokeswoman confirmed the funds would be directed through a DOD program, but declined to provide further information or comment on why the Pentagon chose to support the fund. Likewise, NSA declined comment……."

Reuters 2/18/00 "…..Almost 20 years after the assassination of John Lennon, a government lawyer warned Friday that releasing documents about the former Beatle's left-wing political activities could damage national security. An attorney for the government said he would probably appeal the ruling of a federal judge Friday ordering that three letters about Lennon from an unidentified foreign government -- believed to be Britain -- be turned over to a college professor……. In 1997, as part of a settlement with the historian, the FBI released all its Lennon files except for the 10 documents that are the subject of the current litigation. The FBI says a foreign government, which it will not name, has asked that those documents remain secret……."

Associated Press 2/17/00 "….The Pentagon has not decided whether to investigate the possible misuse of classified information by John Deutch during his tenure as deputy defense secretary, a Pentagon spokesman said Thursday. Pentagon officials are in the midst of reviewing materials provided by the Central Intelligence Agency on Deutch's practice of putting classified information on his unprotected home computers while he served as CIA director. Deutch worked at the Pentagon for three years before taking the CIA post in 1995. The CIA withdrew Deutch's security clearances at the CIA last year after Deutch had left the agency. The action came after it was discovered that Deutch had kept highly classified documents on home computers without security protections. …… Asked about the report, Quigley only would say that the Pentagon is reviewing material provided by the CIA…."

USA Today 2/17/00 Kevin Johnson "….The FBI proposed Wednesday to deal with computer hackers as information-age organized criminals who should be prosecuted under the nation's tough racketeering laws. FBI Director Louis Freeh said serious punishment was needed to combat cyberattacks such as those leveled last week at e-commerce giants Amazon.com, eBay, Etrade, Yahoo and others. The companies' systems were jammed by unidentified hackers, costing them millions of dollars. Freeh told a Senate subcommittee Wednesday that hackers could be considered racketeers and hit with lengthy prison terms if it can be proved the assaults were part of an extensive, organized criminal enterprise. ….."

Russia Today 2/16/00 Reuters "…. Russia has more spies around the world than the United States and the intelligence gap has widened since the Cold War, the staff director of the House Intelligence Committee said on Tuesday. "Most places I go it (Russian intelligence) is a factor of several larger than the U.S. intelligence presence, and that factor is larger than it was 10 years ago," John Millis told a symposium at the Smithsonian Institution. Russian spies monitoring the United States also outnumber Americans spying on Russia, said Millis, a former CIA officer. "The number of Russian intelligence operatives working here officially in the United States has not gone down since the Cold War," he said. …..Asked about the level of Russian spies on unofficial cover, Millis replied: "My guess is that U.S. intelligence would be grateful if they had one-tenth of the capability deployed against Russia as Russia has deployed against the U.S." …."

THE WASHINGTON TIMES 2/17/00 Bill Gertz "….The Pentagon is investigating whether ultrasecret "black programs" were compromised by former CIA Director John Deutch after he put details about some of the Defense Department's most sensitive activities on his home computers. Defense and intelligence officials said the Pentagon recently set up a special panel to examine a personal diary containing highly classified defense information that was kept improperly on Mr. Deutch's home computers - desktop and laptop systems that were used to access the Internet and had received e-mail messages from abroad. The CIA, meanwhile, launched a "damage assessment" to determine whether its secrets were compromised by Mr. Deutch, who was CIA director from 1995 to 1996….."

THE WASHINGTON TIMES 2/17/00 Bill Gertz "…. The CIA withheld information from the Pentagon about what are known as "special access programs" for more than a year and only provided it after news reports highlighted the security breach earlier this month. Special-access programs are so secret that officials privy to them are authorized to lie to keep them from becoming public. Most are kept secret from the CIA and only disclosed to the Pentagon's top three or four officials……Mr. Deutch was briefed on many of these programs when he was undersecretary of defense for acquisitions and later deputy secretary of defense from 1993 to May 1995, when he became CIA director. Most of the programs have been ongoing for the past seven years……."

THE WASHINGTON TIMES 2/17/00 Bill Gertz "….Among the black programs currently under way are efforts to develop new weapons and methods of warfare, including electronic "information warfare" and how the U.S. military plans to conduct it in the future. They also include highly sensitive intelligence and collection development programs for future operations. That information is known to be a major target of foreign intelligence services from Russia, China and other nations……"

THE WASHINGTON TIMES 2/17/00 Bill Gertz "….CIA security officials uncovered "clear evidence" in early 1997 that Mr. Deutch may have violated three laws in using CIA-supplied home computers for personal use and for keeping and deleting secret information, said agency officials who spoke on the condition of anonymity. However, the Justice Department was never notified of the violations until months later. The FBI was first told about the security breach by Michael O'Neill, the CIA general counsel and friend of Mr. Deutch, in a telephone call. However, the FBI did not investigate the matter because there was no evidence of foreign government involvement, the officials said. When the Justice Department was notified in April 1998 of possible crimes, only one of the three laws was cited……"

Electronic Telegraph 2/17/00 "…..THE State Department faced its second major security embarrassment in three months after admitting that it had sent its embassies a piece of software written by citizens of the former Soviet Union……. The new security lapse occurred on Feb 2 when all American missions and embassies around the world were sent an urgent cable telling them to remove a piece of software from their mainframe computers. The programme had been written by a company called Synergy International Systems, which is based in Vienna, Virginia, but is owned by Armenians. The company, whose website says it also has offices in Moscow and Guatemala, says there is no security problem and that they are confident an internal review by the FBI will clear them of any suspicion……."

AP 2/16/00 "…..Michael Lance Walker, the youngest member of a family spy ring for the Soviet Union, was released from a halfway house Wednesday. Walker, 37, the son of the ring's leader, John A. Walker Jr., spent two months in the halfway house after serving 15 years of a 25-year prison sentence. He will be on supervised probation for the rest of the sentence. The spy ring operated for 17 years, causing what authorities described as extensive damage to national security. Michael Walker was arrested in 1985 on the aircraft carrier USS Nimitz, where he was responsible for destroying secret messages. A box filled with 15 pounds of secret documents he had stolen was found hidden near his bunk……"

THE WASHINGTON TIMES 2/14/00 Bill Gertz "….. The Justice Department did not prosecute the former head of its intelligence division despite his admission to investigators that he disclosed classified information, The Washington Times has learned. Richard Scruggs, a friend of Attorney General Janet Reno's, who brought him to Washington, provided secret information to two reporters about an electronic eavesdropping FBI operation against the Japanese group Aum Shin Rikyo in 1995, according to Justice Department officials familiar with the case. Justice Department officials disclosed some aspects of the investigation into unauthorized disclosure on condition of anonymity. It is the first time information has been disclosed from the secret court set up under the 1979 Foreign Intelligence Surveillance Act. The Justice Department's downplaying of the Scruggs findings is similar to the CIA's limited response to former director John Deutch, who was caught mishandling classified documents but not prosecuted. In both cases, government officials have charged that security infractions were covered up to protect senior personnel……"

THE WASHINGTON TIMES 2/14/00 Bill Gertz "….. Mr. Scruggs worked with Miss Reno when she was a prosecutor in Florida and was offered a job on her Justice Department staff in the early 1990s. He was placed in charge of writing the 350-page "after action report" on the Justice Department's handling of the Branch Davidian standoff. The report was submitted in October 1993, six months after the incident……Some officials suggested Mr. Scruggs was not punished for disclosing intelligence because of his friendship with Miss Reno and because he helped protect her from criticism after the Waco affair….."

THE WASHINGTON TIMES 2/14/00 Bill Gertz "…..Mr. Scruggs also was singled out for criticism in a recent internal Justice Department report on the department's mishandling of the case of fired Los Alamos scientist Wen Ho Lee, who is suspected of passing nuclear weapons secrets to China. The report by Justice official Randy Bellows criticized Mr. Scruggs for his role in setting the department's intelligence policy, including the decision not to seek a court order allowing the FBI to place Mr. Lee under surveillance early in the espionage investigation. One former U.S. government official said Mr. Scruggs' treatment showed the department covered up security infractions by senior officials, but aggressively pursued similar misconduct for lower-ranking officials. Numerous FBI investigations have been ordered by the Justice Department into other leaks of classified information…….. .CIA Director George Tenet, who is in charge of protecting all secrets, was never notified of the leak investigation, the officials said. The committees of Congress with oversight responsibility for the intelligence community also were not informed….."

THE WASHINGTON TIMES 2/14/00 Bill Gertz "….. The reporters' book revealed that the FBI and Justice Department were at odds over how quickly to install electronic eavesdropping devices in the offices of Aum Shin Rikyo in New York shortly after the group's poison gas attack in a Tokyo subway. The surveillance and break-in at the group's New York offices required approval by the secret court set up under the 1979 Foreign Intelligence Surveillance Act to authorize searches and eavesdropping in counterspy and counter-terrorism cases. According to the book, Mr. Scruggs delayed approval for the electronic bugging because of a lack of evidence. The holdup angered James Kallstrom, director of the FBI's New York office….."

THE WASHINGTON TIMES 2/14/00 Bill Gertz "….. Mr. Scruggs said he was assigned to "shadow" the two reporters during their work on the book and that the department's cooperation was approved by Miss Reno. Mr. Scruggs also said the probe was not "a leak investigation." However, other officials familiar with the case said it was. One official close to the investigation said Mr. Scruggs was the original source for the intelligence material contained in the book and admitted it during the subsequent investigation by the Office of Professional Responsibility……"

 

 

The NSA 2/27/00 "……..In reaction to recent publicity, and in anticipation of an unflattering segment on this Sunday's "60 Minutes" broadcast, the National Security Agency has sent a letter to each member of Congress assuring members that all is in order…… United States House of Representatives Washington, DC 20515 Dear Representative: Recently, many allegations have surfaced about activities conducted by the National Security Agency (NSA). We anticipate a continuation, if not an increase, in these allegations for the foreseeable future. In fact, a 27 February 2000 airing of a CBS "60 Minutes" newsmagazine report may feature adverse information about the National Security Agency (NSA). We are providing the attached documents on the oversight of NSA and some answers to frequently asked questions in an effort to answer some of your questions concerning the allegations. We want to assure you that NSA's activities are conducted in accordance with the highest constitutional, legal, and ethical standards, and in compli- ance with statutes and regulations designed to protect the privacy rights of U.S. persons. Agency employees are trained to comply with these standards, and an extensive oversight system that includes internal and external reviews exists to ensure compliance. …….. As is the long-standing policy within the United States Intelligence Community, we must refrain from commenting on actual or alleged intelligence activities; therefore, we can neither confirm nor deny the existence of specific operations. However, we can tell you that NSA operates in strict accordance with U.S. laws and regulations in protecting the privacy rights of U.S. persons. ….."

 

TESTIMONY OF ERIC HOLDER DEPUTY ATTORNEY GENERAL DEPARTMENT OF JUSTICE "…..Computer crime investigators in a number of FBI field offices and investigators from other agencies are investigating these attacks. They are coordinating information with the National Infrastructure Protection Center (NIPC) of the FBI. The agents are also working closely with our network of specially trained computer crime prosecutors who are available 24 hours a day/7 days a week to provide legal advice and obtain whatever court orders are necessary. Attorneys from the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS) are coordinating with the Assistant United States Attorneys in the field. We are also obtaining information from victim companies and security experts, who, like many in the Internet community, condemn these recent attacks. We are also working closely with our counterparts in other nations. I am proud of the efforts being made in this case, including the assistance we are receiving from a number of federal agencies…… It is worth remembering that just ten years ago, the Internet was largely unknown and unavailable to the average person. There was no e-commerce, no e-Bay, no amazon-dot-com, very little dot-anything. At that time, the Internet was a collection of military, academic, and research networks serving a small community of trusted users. Many of us were just learning about pagers and cell phones, VCRs, and videocams. …."

WorlNetDaily 2/26/00 Paul Sperry "….. In 1991, when Bill Clinton let on he was running for the White House, Arkansas fund-raiser Yah Lin "Charlie" Trie tried to develop a sister city relationship between Little Rock and Changchun, China -- a key biowarfare research hub, sources say. While visiting the Chinese city, where he eventually bought a home, Trie brokered deals to export biotech equipment to a Changchun lab suspected of being a Chinese army front for the manufacture of agents used in biological weapons. Changchun is in Jilin province, which borders North Korea. It's also near Harbin, China's new propaganda center for biowarfare. "During one of his early visits to Changchun, Trie met with Zhang Jianming, director of the Changchun Biological Products Institute," according to a copy of FBI summaries of interviews with Trie obtained by WorldNetDaily. The lab, a unit of the Public Health Ministry, is run by the Chinese communist government……"

WorlNetDaily 2/26/00 Paul Sperry "….. Trie formed a close bond with the bio lab chief while in Changchun, where Trie and his late wife bought a home for $20,000. "Trie provided a letter of invitation for Zhang to use in obtaining a visa to the United States," the 150-page FBI reports says. "Once in the United States, Trie accompanied Zhang on his travels." Zhang visited Little Rock and, in November 1992 -- after Clinton was elected president -- he and Trie set up what appears to be a shell company called United Biotech. The company had a bank account and a Little Rock address, but no business plan or real income. The firm was dissolved a year later. But in that time, Trie helped Zhang procure a 132-gallon "medical fermentation tank" from a New York-based manufacturer, according to the FBI. …."

WorlNetDaily 2/26/00 Paul Sperry "….. "He got them the fermenting equipment to grow the bugs" used in germ warfare, a senior Pentagon official told WorldNetDaily. Special agents worry that the Chinese government may have used the apparent shell company to acquire other biotech equipment……. A search of Arkansas secretary of state records for DBAs, sole proprietorships and incorporations registered under Trie's name turns up no less than six import-export or international consulting businesses. They include Jesco International Inc., Asian Pacific International Inc., Daihatsu International Trading Inc., Premier International Investment Inc. and T&L International Inc. At least one, Jesco International, traded with China before going out of business. …."

WorlNetDaily 2/26/00 Paul Sperry "….. According to the FBI report, the 50-year-old Trie had an ethnic-Chinese "silent partner" -- Dr. Peter P. Fu -- who invested in Daihatsu International. An FDA toxicologist, Fu met Chinese scientist Zhang in Little Rock after Clinton was elected. Fu works for the National Center for Toxicological Research in Jefferson, Ark., which is about halfway between Little Rock and Pine Bluff, Ark. The federal lab, on a 496-acre campus, conducts experiments in biochemical toxicology, genetic toxicology, neurotoxicology, microbiology and molecular epidemiology, its website says. Some pathology labs do studies of "microorganisms multiplying and producing infections." The center has an active lab-to-lab scientific exchange program with a medical institution in China. And in 1993, it hosted an "international group of inspectors interested in Biological Weapons Treaty issues." Trie told FBI agents he didn't think Fu, 58, had any ties to Beijing. At that, agents produced one of Fu's business cards "indicating that Dr. Fu has ties with two institutions managed by the PRC government." ……"

WorlNetDaily 2/26/00 Paul Sperry "….. He [former Brookings Institution defense analyst] added that the PLA, through its front companies, is interested in acquiring U.S. biotech equipment for use in "precisely this area.[biotech military]" ….. Even though China joined the Biological Weapons Convention in 1984, it has violated the pact and maintained an offensive germ-warfare program, according to a 1997 report by the Arms Control and Disarmament Agency. That year, Secretary of State Madeleine Albright had to concede to the Senate Foreign Relations Committee that classified reports show Chinese firms have shipped biowarfare equipment to Iran. ……"

Deutsche Press 3/10/00 "…..A reported mole in NATO who supplied target information to Serbia during last year's Kosovo war was a United States Air Force Officer, a newspaper said friday. According to the Tageszeitung, the officer said he passed informatioin to Belgrade out of his belief that NATO attacks were not allowed under international law, and what he viewed as the "Blackmail ultimatum" levelled at Yugoslavia by the United States and its Western allies prior to the conflict. …."

national review 3/10/00 Michael Ledeen "……I spent more than twenty years studying fascism, and all that time I kept asking myself how the democratic countries of the West could have been so blind, and how they could have been so totally unprepared for Hitler's war. After all, he had written Mein Kampf, which pretty much laid it all out. Once in power, he set about arming the country, making menacing sounds to his neighbors, crushing the Jews and separating them out of the population, and preparing to march. It was all so clear. He made no effort to trick us. We simply refused to believe what was right in front of our noses. In the fullness of time, the other Europeans were cannon fodder for Hitler's armies, and the United States did virtually nothing until we were bombed into war by the Japanese. Then I look at China today, and I ask myself the same questions. China's leaders have made no bones about their hatred for us. They have loudly and publicly announced their intention to develop armies capable of destroying us. They have threatened to bomb Los Angeles if we do anything to annoy them, especially in the defense of democratic Taiwan. They have been busily crushing religious groups in China who dare recognize any authority other than the regime itself, and are separating them out of the population. There is no effort to trick us, none of the legendary inscrutability of the East. It is all so clear. In the past few days, both the CIA and the FBI have warned about the increasing Chinese espionage in the United States, aimed primarily at obtaining our advanced military technology. One wonders why they bother, since we've been quite willing to sell them most anything they need. Clinton and Gore have deliberately and systematically armed China, and when a tiny handful of congressmen tried to get the details, Clinton and Gore quashed investigations and withheld evidence from investigators. Meanwhile, the Chinese prepare for war, and warn us of its consequences. The headlines for the past several weeks have reported an endless barrage of threats from Beijing: There will be war with Taiwan if it dares to act as an independent country, and war with us if we dare to defend them, as we have sometimes promised to do. It may be all bluff and bluster, but, I keep thinking, that's what lots of people said about Hitler. ……"

WorldNetDaily 3/10/00 David Bresnahan "……A shipment of Humvees and other military equipment was sent in error from the U.S. directly into Costa Rica, inadvertently exposing the existence of a secret operation there, according to government sources. Although the supplies are now being held by customs agents and cannot be released until a fee has been paid and papers signed, the U.S. military cannot acknowledge the equipment because it does not have permission to be in Costa Rica. Military sources told WorldNetDaily that incompetence caused the error, and that the supplies should have been flown in secretly to avoid exposing the operation. If the U.S. does not claim the equipment within 60 to 90 days, it will be sold at auction to the highest bidder. The embarrassing situation is just one of a string of events that upset veteran military and intelligence sources who have spoken with WorldNetDaily on condition of anonymity. ….."

CNSNews.com 3/10/00 Jim Burns "…..The President of the Southeastern Legal Foundation (SLF) believes Charles LaBella's report on campaign finance abuses in the Clinton-Gore White House, sealed by Attorney General Janet Reno for two years, shows the Justice Department hasn't been doing its job. …… "There seems to be an ongoing pattern at the Justice Department of covering up major wrongdoings by the Clinton Administration and this is just another example of that," Matthew Glavin, President of the Southeastern Legal Foundation, told CNSNews.com....... "I have long believed that the LaBella memorandum contained damning information on the illegal campaign fundraising efforts by the Clinton-Gore administration. During our investigation, the Cox committee, which was afforded unprecedented access to a wide range of classified intelligence documents, requested a copy of the LaBella memo but was refused by (Attorney General) Janet Reno and the Justice Department. Now we know why," Weldon said……… Weldon also thinks LaBella's memo could offer "more damaging evidence of wrong-doing by the Clinton-Gore administration."……"

THE WASHINGTON TIMES 3/9/00 Bill Gertz "…..China's spy services are stepping up military spying against the United States while using Chinese students as intelligence agents and "political influence" programs to manipulate U.S. policy, a joint CIA and FBI report says. "Chinese attempts to obtain U.S. military and military-related technology . . . have increased since the early 1990s," the counterintelligence report stated. "Beijing continues to view the United States as one of its major targets for political collection," according to the report sent to Congress in January but released yesterday. A copy of the five-page unclassified report was obtained by The Washington Times……….. Regarding political influence activities, the report said China is continuing to work on "building political influence in the United States."….. Stepped-up influence operations date to 1995, when Beijing began directing resources toward influencing Congress and building greater overall political influence in the United States. The operations followed the June 1995 visit to the United States by Taiwanese President Lee Tenghui……"

THE WASHINGTON TIMES 3/9/00 Bill Gertz "…..As for military espionage, the United States continues to be the "main target" of spying by the intelligence arm of the People's Liberation Army, known as the Military Intelligence Department (MID). ……. Most military spying is done overtly by Chinese attaches posted to embassies and consulates. However, the report states that since 1987 the FBI and Customs service have stopped "at least two MID/ PLA clandestine collection operations in the United States." The attaches collect intelligence from "contacts" with U.S. officials and from publications as well. Chinese spies are continuing to obtain valuable intelligence from U.S. nuclear weapons laboratories, the report states……"PRC scientists, through mutually beneficial scientific exchange programs, gather [science and technology] information through U.S. national laboratories," the report said…….Cooperative exchange programs by the laboratories have created "new vulnerabilities" for U.S. high-technology information, the report states. "These vulnerabilities emphasize the significant difficulty the United States encounters in detecting PRC espionage activity," the report said…….. The secret and public versions of the report were sent last week to the House Intelligence Committee by CIA Director George Tenet and FBI Director Louis Freeh. The report was required under legislation passed by Congress……"

THE WASHINGTON TIMES 3/9/00 Bill Gertz "…..The report mentions the FBI case involving Lawrence Livermore National Laboratory scientist Peter H. Lee, who gave China secret information about the neutron bomb - which kills with radiation instead of a large blast -in 1985 and 1997. Lee pleaded guilty to espionage in 1997. Sen. Arlen Specter, Pennsylvania Republican, said during a Senate hearing Tuesday that Lee was sentenced only to community service and served no jail time despite his involvement in "a very egregious case involving the disclosure of nuclear secrets in 1985 and the disclosure of certain materials about detecting submarines in 1997." Mr. Freeh said during the hearing that the FBI and other security agencies view Chinese spying "with the utmost seriousness." Asked if the threat from Chinese spies is serious, Mr. Freeh said, "Yes, sir, absolutely."….."

THE WASHINGTON TIMES 3/9/00 Bill Gertz "…..China also is engaged in economic espionage against U.S. companies, the report said. Chinese spies have targeted private company information and trade secrets, "particularly advanced civilian, military and dual-use and bio-technology," as a top priority, the report said. China's civilian MSS spy agency is particularly active against U.S. businessmen and Westerners in China "where MSS officers can be aggressive," the report said. Chinese spies often exploit the "shared ancestry" of so-called overseas Chinese with access to commercial or government secrets, the report said. According to the FBI and CIA, professional military and civilian intelligence officers play a small part in the China's spying efforts..........The report said some Chinese businesses in the United States "are a platform for intelligence collection activities." Chinese firms provide "cover" for spies, it said. "These collectors enter the United States to gather sensitive and/or restricted proprietary [and] trade secret information or to act as a liaison to consumers of intelligence back in China," the report said…….. China also is engaged in "propaganda and perception management" against the United States, using government-owned or -controlled press. The report identified the newspaper supplement Wen Wei Po as "a favored outlet for reaching ethnic Chinese audiences, whose perspectives in turn can influence the broader public's views of China," the report said……"

The Associated Press 3/8/00 Matt Kelley "…..A Republican senator who investigated allegations of Chinese nuclear spying accused Attorney General Janet Reno on Wednesday of improperly delaying the government's espionage probe. Lee was fired a year ago and indicted in December on 59 felony counts of mishandling classified information. He has pleaded innocent. The indictment does not accuse Lee of giving secrets to China or any other country…….. A Democratic colleague, Sen. Robert Torricelli of New Jersey, said he agree d with most of Specter's conclusions, including the criticism of Reno. "It is inexplicable and will always remain a mystery to me" why the warrant application was denied, Torricelli said. "If there was damage to national security, we will never know if the granting of that application would have prevented it." …….. Specter's report also criticizes the FBI and Energy Department. It said the investigation of Lee "has been characterized by a series of errors and omissions ... which have permitted Dr. Lee to threaten U.S. supremacy by putting at risk information that could change the global strategic balance." …..

Washington Post 3/9/00 Vernon Loeb "……A senior FBI official is under investigation by the General Accounting Office for possibly withholding documents from Congress last year in the Wen Ho Lee case, Sen. Charles E. Grassley (R-Iowa) said yesterday. In a flurry of activity on the Lee case, Grassley disclosed the GAO probe and faulted the FBI for failing to inform Congress throughout much of 1999 that its agents had concluded Lee was not the prime suspect in an espionage probe at Los Alamos National Laboratory. The investigation involved leaked W-88 warhead secrets to China. Grassley's comments came as Sen. Arlen Specter (R-Pa.), released his own report on the Lee case. In contrast to Grassley, Specter played down the FBI's role and focused instead on the Justice Department's failure to approve a secret search warrant for Lee's office. Grassley, who sharply criticized the Specter report, did not name the FBI official under investigation. But Senate sources said he was referring to Neil Gallagher, head of the FBI's National Security Division……….. "I am interested in the Office of Special Investigations resuming its investigation of withheld documents in the Wen Ho Lee case and the role that a key official might have played in it," Grassley said. FBI spokesman John E. Collingwood responded that Gallagher personally granted Congress "unprecedented access" last fall to the "raw file" in the Lee case and is eager to be interviewed by GAO investigators to resolve the matter…….."

Federation of American Scientists (FAS) 2/18/00 "…..IMPROPER HANDLING OF CLASSIFIED INFORMATION BY JOHN M. DEUTCH (1998-0028-IG) February 18, 2000 L. Britt Snider Inspector General Daniel S. Seikaly Assistant Inspector General for Investigations …… This unclassified report has been prepared from the July 13, 1999 version of the classified Report of Investigation at the request of the Senate Select Committee on Intelligence. Information in this version is current as of the date of the original report. All classified information contained in the original Report of Investigation has been deleted……..

230. (U/ /FOUO) Former DCI John Deutch was specifically informed that he was not authorized to process classified information on government computers configured for unclassified use.
231. (U/ /FOUO) Throughout his tenure as DCI, Deutch intentionally processed on those computers large volumes of highly classified information to include Top Secret Codeword material.
232. (U/ /FOUO) Because Deutch's computers configured for unclassified use had connections to the Internet, all classified information on those computers was at risk of compromise. Whether any of the information was stolen or compromised remains unknown.
233. (U/ /FOUO) On August 1, 1995, Deutch was made aware that computers with Internet connectivity were vulnerable to attack. Despite this knowledge, Deutch continued his practice of processing highly classified material on unclassified computers connected to the Internet.
234. (U/ /FOUO) Information developed during this investigation supports the conclusion that Deutch knew classified information remained on the hard drives of his computers even after he saved text to external storage devices and deleted the information.
235. (U/ /FOUO) Deutch misused U.S. Government computers by making extensive personal use of them. Further, he took no steps to restrict unauthorized persons from using government computers located at his residences.
236. (U/ /FOUO) The normal process for determining Deutch's continued suitability for access to classified information, to include placing the results of the SIB investigation in Deutch's security file, was not followed in this case, and no alternative process was utilized. The standards that the Agency applies to other employees' and contractors' ability to access classified information were not applied in this case.
237. (U/ /FOUO) Because there was a reasonable basis to believe that Deutch's mishandling of classified information violated the standards prescribed by the applicable crimes reporting statute, Executive Order and Memorandum of Understanding, OGC officials Michael O'Neil and the PDGC should have submitted a crimes report to the Department of Justice.
238. (U/ /FOUO) The actions of former Executive Director Nora Slatkin and former General Counsel Michael O'Neil had the effect of delaying a prompt and thorough investigation of this matter.
239. (U/ /FOUO) DDA Richard Calder should have ensured the completion of a more thorough investigation, in particular, by arranging for an interview of Deutch and a subsequent documentation of that interview in accordance with established Agency procedures. Calder should also have ensured that the matter was brought to a conclusion rather than permitting it to languish unresolved.
240. (U/ /FOUO) Former Inspector General Frederick Hitz should have involved himself more forcefully to ascertain whether the Deutch matter raised issues for the Office of. the Inspector General as well as to ensure the timely and definitive resolution of the matter.
241. (U/ /FOUO) DCI George Tenet should have involved himself more forcefully to ensure a proper resolution of this matter.
242. (U/ /FOUO) The application of the Independent Counsel statute was not adequately considered by CIA officials and, given the failure to report to DoJ on a timely basis, this in effect avoided the potential application of the statute.
243. (U/ /FOUO) The Congressional oversight committees and the Intelligence Oversight Board should have been promptly notified of Deutch's improper handling of classified information……"

UK Guardian 3/9/00 Richard Norton-Taylor "……The conclusion in a secret US defence department report that Belgrade had a spy in Nato in the early days of the Kosovo conflict backs up suspicions raised at the time by other military sources and raises the question of how much it affected allied operations and the conduct of the war. Nato commanders, not to say political leaders, became increasingly frustrated by their inability to destroy Serb units carrying out atrocities on ethnic Albanians, precisely the activity Nato's military action was designed to prevent. ……… General Mike Short, commander of the allied air forces, said: "The Serbs dictated the pace of events, they dictated the battle rhythm. They came out to burn villages when they wanted to, they hid when the weather was good." ……….Failure to identify targets on the ground in Kosovo led Nato commanders - after fierce arguments between member governments - to strike economic and industrial targets, including power stations and the Serbian television headquarters in Belgrade. …… Military commanders, in the first few weeks of the war, were cautious about what their bombers had achieved. Swept on by the rhetoric of their political masters, however, they began to make claims which they were to regret. ………After conceding that the initial war aims - which were to avert a human disaster, as George Robertson, then defence secretary, put it - had failed, Nato claimed it was progressively destroying the Albanians' tormentors. Yet when the western media saw the Serb military withdraw from Kosovo in early June, they saw convoys of Serb tanks, armoured cars, guns, trucks and military equipment untouched by Nato's air assault. ……… A Nato spy could have provided Belgrade with crucial information, but the implication of the secret US reports is that two weeks into the conflict he or she no longer had access to allied targeting secrets. ……."

Security Intelligence News Service 3/9/00 "…..Despite intensified U.S. counterintelligence efforts to identify Chinese spying activities in the U.S., a joint CIA/FBI report states that Chinese spies have escalated espionage operations against the United States. "Chinese attempts to obtain U.S. military and military-related technology ... have increased since the early 1990s," the Washington Times today reports the five-page unclassified counterintelligence report as saying. ……. The report states that since 1987 the FBI and Customs service have stopped "at least two MID/PLA clandestine collection operations in the United States." SOURCES first reported last May that there have been perhaps dozens of probes of Chinese spies conducted by the CIA and the FBI, some jointly, during the last ten years, none of which have resulted in any arrests, according to a variety of federal officials and sources who spoke on condition of anonymity. The sources said CIA and FBI counterintelligence (CI) agents have grown increasingly frustrated over decisions by higher-ups not to prosecute persons against whom they painstakingly developed espionage cases, including stings in which the spies reputedly were caught red-handed buying secrets from undercover U.S. CI agents. ……"

Security Intelligence News Service 3/9/00 "…..The FBI has not commented on the extent of or the subjects of its investigations, but SOURCES has learned that the stings and related investigations it has been told about have come under scrutiny by the Attorney General's office. The Chinese spies at the heart of these FBI probes, many working in the U.S., sought to acquire a "shopping list" of military weapons secrets including information on the SR-71 spy plane, AWACS aircraft, ballistic missile guidance systems, and nuclear attack submarines, according to sources. According to a CIA report turned over to U.S. lawmakers, China has, in fact, obtained information on a variety of U.S. weapon systems as a result of espionage operations here. It is not known if classified portions of the report acknowledge the CIA and the FBI's counterintelligence investigations. Regardless, mounting evidence indicates that Chinese espionage is pervasive, as the joint CIA/FBI report quoted by the Washington Times today asserts, and that the stings SOURCES has been told about are only the tip of the iceberg. ……."

Inside The Pentagon 3/9/00 Keith Costa "…..The Federal Bureau of Investigation has turned down a formal request from the Defense Department to help produce a list of companies operating in the United States that are controlled by China's military. "We're not going to do it; we're not the appropriate agency," an FBI source told Inside the Pentagon March 3. The source added that Defense Secretary William Cohen will receive a letter this week from FBI Director Louis Freeh on the bureau's decision. The Pentagon is required to produce the list by an amendment sponsored by Rep. Tillie Fowler (R-FL) and included in the fiscal year 1999 Defense Authorization Act. Specifically, the law says that the defense secretary "shall make a determination of those persons operating directly or indirectly in the United States . . . that are Communist Chinese military companies and shall publish a list of those persons in the Federal Register." Moreover, the defense secretary "shall make additions or deletions to the list . . . on an ongoing basis based on the latest information available." ….."

American Legion 3/2000 "……Rep. Christopher Cox, R-Calif., entered the 105th Congress unaware that he would soon be immersed in a national security nightmare: The Chinese had been stealing vital U.S. nuclear information. Rather than getting embroiled in finger pointing, Cox led a special committee in an effort to get to the bottom of the scandal……

The American Legion Magazine: What is your reaction to the indictment of former Los Alamos scientist Wen Ho Lee on charges of mishandling nuclear weapons secrets?
Christopher Cox: I have been briefed about the significance of the nuclear codes that were transferred. In light of that, this indictment is not surprising……
Q:What was the most important recommendation?
A:That Congress reconsider whether the Department of Energy is capable of the mission. As a result, Congress created the National Nuclear Security Administration. This is the most significant overhaul of a cabinet department in two decades. The NSSA is an independent agency within DOE. It has a single focus on nuclear weapons security. ……..
Q:The FBI says Chinese intelligence targets Chinese citizens in the United States, a demographic that makes up the largest number of foreigners earning Ph.D.s here. Should something be done about that?
A:The PRC uses the unconscionable practice of racial profiling in its espionage. But the United States in response cannot rely upon that offensive technique. Nor is it useful, because espionage threats against the United States come from many quarters. Much more sophisticated methods of counterintelligence are necessary. ……….
Q:The Chinese are developing a ballistic missile submarine that will render the entire United States vulnerable. Will it contain U.S. warhead and missile technology?
A:The warheads mated with the PRC's new long-range missiles, including the JL2 Juland submarine-launched ballistic missile, are expected to reflect the influence of stolen U.S. designs. While the JL2 will be able to hit the United States, so will the land-based missiles that the PRC is deploying. And so can the ICBMs currently in silos that have been targeted on the United States. Presently, the PRC can hit Los Angeles, New York and everything in between. ……
Q:How many missiles do they have capable of hitting the United States now?
A:Approximately 20 are deployed. They are city busters. Their only purpose is to take out entire cities. This distinguishes them from highly accurate nuclear weapons directed against a country's hard target offensive nuclear capabilities. …….
Q:What more can we do?
A:We must renew our attention to counterintelligence. The Russian espionage directed against our State Department shows that the end of the Cold War ought not to be reason for America to abandon its counterintelligence efforts. Second, American policy makers should be more careful about transferring U.S. military technology to the PRC. We would be foolish to be unprepared for at least a potential challenge….."

CNN.com 3/8/00 "……FBI Director Louis Freeh and CIA Director George Tenet are expected to brief the Senate Intelligence Committee Wednesday on what Freeh calls a "very serious" espionage threat from China. The two officials are expected to push for greater counterintelligence resources to cope with the growth of international spying…... Freeh told Senate committee chairman Arlen Specter (R-Pennsylvania), Tuesday that he and Tenet plan "to exactly lay out the parameters of that [Chinese] threat so that can be considered appropriately by the decisions made by the Congress".
"Would you characterize it as 'very serious'?" asked Specter.
"Yes sir, absolutely," Freeh replied.
Freeh already has briefed the House Intelligence Committee on the current counterintelligence effort to combat espionage……… A secret FBI report recently presented to the House panel begins with a description of the Chinese threat, which Freeh acknowledged Tuesday was "an extensive detailed" account of activities that "not only the FBI, but our other security agencies treat with the utmost seriousness". Freeh also cited Russia and Cuba as nations which have stepped up their intelligence activities aimed at the United States. ……"

U.S.News & World Report 3/13/00 David Kaplan "…..After years of surveillance, Tokyo police thought they'd seen everything about Aum Shinrikyo, the high-tech doomsday sect behind the 1995 nerve-gas attack on that city's subway system. But even the cops were surprised after raiding cult facilities last week and finding evidence that Aum had developed software programs for at least 10 government agencies, including the Defense Ministry, as well as some 80 Japanese firms. With their identity hidden behind a web of front companies and subcontractors, Aum engineers sold as many as 100 systems ranging from databases for clients to an Internet messaging service. ….."

The Register 2/3/00 Thomas Greene "….. Those who picture hacker legend Kevin Mitnick seated before a computer tirelessly reverse-engineering operating system code and exhaustively probing remote networks for weaknesses have got the wrong idea. "The human side of computer security is easily exploited and constantly overlooked," Mitnick explained in testimony before the Senate Governmental Affairs Committee on Thursday. "Companies spend millions of dollars on firewalls, encryption and secure access devices, and it's money wasted because none of these measures address the weakest link in the security chain: the people who use, administer and account for computer systems that contain protected information." Mitnick detailed for the Committee how easily he breached security at the Internal Revenue Service and the Social Security Administration, simply by hacking humans instead of boxes. "I called employees within these agencies and used social engineering to obtain the name of the target computer system and the commands used by agency employees to obtain protected taxpayer information," he explained. "Once I was familiar with the agency's lingo, I was able to successfully social engineer other employees into issuing the commands required to obtain information from it, using as a pretext the idea that I was a fellow employee having computer problems." "I obtained confidential information in the same way government employees did, and I did it all without even touching a computer.....I was so successful with this line of attack that I rarely had to go towards a technical attack." ….."

The Register (UK) 2/29/00 Thomas Greene "…… As part of a recent government-wide scramble to tame the Wild, Wild Web, Senate Governmental Affairs Committee Chairman Fred Thompson (Republican, Tennessee) and Senator Joseph Lieberman (Democrat, Connecticut) announced hearings planned for 2 March on legislation to improve government network security by creating a centralised oversight authority within the Office of Management and Budget (OMB). The OMB works on behalf of the White House to evaluate the effectiveness of federal agencies, and to establish allocation priorities among them. Its oversight tends to be more pragmatic than political. Both Senators have in mind securing military and law-enforcement networks and essential civilian services such as banking, electricity and transportation from organised threats lurking abroad. "If we know some entity, some group, has got the ability to massively disrupt us, that's ample blackmail material. And I think that's the kind of threat we're going to be facing across the board -- whether it's cyber-terrorism or nuclear or biological -- from these smaller entities," Thompson said. ….."

Reuters 2/29/00 "…..A federal appeals court on Tuesday denied bail to Wen Ho Lee, saying it would be a security risk to release the former U.S. government scientist charged with illegally copying nuclear weapons secrets. The Taiwanese-born naturalized citizen who worked at Los Alamos National Laboratory in New Mexico had asked the 10th U.S. Circuit Court of Appeals here to release him until his trial, which was expected to begin later this year. "We can conceive of few greater threats to the safety of the community than the risks presented in this case," the appellate judges said in a seven-page order. …."

 

The Straits Times 3/1/00 AP "…..The US military lacks the intelligence information needed to fight and function effectively in many cities around the world, especially in developing countries most likely to harbour future conflicts. Congressional investigators warned on Monday that recent conflicts in Kosovo, Bosnia and Somalia have shown that poor intelligence about local conditions can lead to greater risks for US forces and civilians. "US forces currently do not have adequate information ... due to the lower priority the intelligence community has afforded urban warfare in its collection efforts," the investigators said. Fighting in cities presents very different challenges to military forces than campaigns in open areas, like the vast expanses of desert in the Persian Gulf War. ….."

Associated Press 3/2/00 Tom Raum "…..The CIA's former general counsel is being commanded to appear before a Senate panel to explain why it took the agency so long to act on information that former CIA Director John Deutch had violated security rules by storing top secrets on unsecured home computers. A subpoena for Michael J. O'Neil's testimony was issued by the Senate Intelligence Committee on Wednesday after the former CIA official refused to show up before the committee on the advice of his lawyer. …… Panel members said they had intended to question O'Neil on whether he withheld information about his former boss from agency investigators and the Justice Department. O'Neil's lawyer, Roger Spaeder, sent a letter to the panel saying that he had advised O'Neil that ''he should not testify at this time'' because Attorney General Reno had decided to review her earlier decision declining prosecution of Deutch and others identified in a CIA inspector general's report. However, Spaeder suggested that O'Neil ''is prepared to cooperate and testify'' if the committee were to vote to give him immunity from possible prosecution. ...... ''I'm sure he'll assert the Fifth Amendment, but we want him to do it in front of the committee,'' committee Chairman Richard Shelby, R-Ala., said in an interview. Shelby said he did not anticipate that the panel would agree to the immunity request. ......"

UPI 3/2/00 Ashley Baker "….Despite the fact that over two dozen countries have electronic warfare plans that aggressively target U.S. computers, most federal agencies have done little to protect their systems, an expert told lawmakers Thursday. "Some 30 countries have aggressive offensive information warfare programs and all of them have America firmly in their sights," said James Adams, chief executive officer of Infrastructure Defense, Inc., a consulting firm that works with U.S. intelligence agencies. "Among government and industry alike, an understanding of the critical infrastructure's threat environment is barely in its infancy." ..."

INSIGHT Magazine 3/3/00 Scott Wheeler "……The summary reveals that Trie explained "he would have contributed money to Clinton's campaign back in 1992, but he was aware at the time that either the FBI or the CIA was interested in talking to him." According to the summary, when then-governor of Arkansas Bill Clinton told Trie that he would run for president, Trie telephoned the Chinese Embassy, apparently to apprise Beijing of the development. It is this slip, according to the summary, that was the cause of Trie's anxiety about openly donating to Clinton in 1992 despite his "pro-Clinton enthusiasm." ……. In May 1998, an Associated Press, or AP, report indicated that the Justice Department and the FBI had "gathered evidence as early as 1992 that two fund-raisers who organized Clinton's initial efforts among Asian-Americans were engaged in wrongdoing."... According to the AP account, "The Lums also told prosecutors that [Ron] Brown, then the Democratic Party chairman, tipped them off in 1992 that a businessman they were working with was in fact an undercover FBI agent." The same press account says the Lums were told of the attempted FBI sting only days before they were to meet with Clinton in Arkansas. How the FBI got on to these operations is not discussed. ……. The retired official, who worked on counterintelligence and technology-transfer cases related to China, states that the testimony "suggests Trie was already in communication with sources of tainted money" in 1992. A U.S. citizen since 1984, Trie legally was free to make any legal donation he wished, so the retired special agent is suspicious of what may be a Trie cover story or spy legend. . ….. "

INSIGHT Magazine 3/3/00 Scott Wheeler "……According to the FBI documents, Trie explained to investigators that he phoned the PRC's consulate in Houston to ask officials to "gather Asian immigrants and community leaders [and] organize a party to raise money for Clinton." The summary of sworn Trie depositions went on to say, "The consular official told Trie that the PRC could not become involved in a U.S. election campaign and warned him that the phone line was tapped." In short, Trie was told to "shut up and duck." The retired special agent says the money that the PRC poured into Clinton's campaign coffers through Trie after Clinton was elected president, coupled with the dramatic testimony, suggests that the investigation is far from over….."

INSIGHT Magazine 3/3/00 J Michael Waller "…..Former CIA director John M. Deutch's alleged criminal mishandling of supersecret information and an internal CIA cover-up to protect him from prosecution are the latest security scandals to rock the Clinton administration. Deutch's actions, which may have compromised thousands of CIA documents and Pentagon black programs, come as no surprise to security and intelligence professionals who have been troubled by the lack of concern for keeping secrets throughout the Clinton-Gore administration. These professionals say the administration's disregard for standard security procedure and an arrogance of power have combined to create the Deutch and other scandals, putting U.S. intelligence and defense secrets at risk and placing American lives in danger. ….."

INSIGHT Magazine 3/3/00 J Michael Waller "…..The Deutch affair comes in the wake of three grave State Department security lapses that provided unrestricted access to hundreds of foreign nationals, enabled Russian spies to plant at least one listening device in the State Department on the floor shared by the secretary of state and allowed former Soviet citizens to write software for department computers from an office down the hall from the room in which the Russian bug was found……. "It started in the White House," says Stephen Bryen, a former undersecretary of defense and an expert on weapons-technology proliferation. "Aldrich goes into it chapter and verse. That's what his gripe was all about - that they weren't properly clearing people. That's what really rankled him. They found him to be onerous and tried to squeeze him out of there." …….."

INSIGHT Magazine 3/3/00 J Michael Waller "….. As cochairman of a bilateral U.S.-Russian Cooperation Commission - also known as the Gore-Chernomyrdin Commission to spotlight Gore and his Russian counterpart - former prime minister Viktor Chernomyrdin, Gore won notoriety for rejecting intelligence reports that showed his interlocutors to be involved with corruption and organized crime (see "Gore's Embrace," Sept. 27, 1999). That attitude, critics say, caused the commission to approve U.S. aid programs that harmed the national security of the United States. Bilateral programs negotiated under Gore-Chernomyrdin, including vital nuclear nonproliferation initiatives, have been crippled by poor U.S. leadership, a lack of accountability and personality clashes, according to a series of General Accounting Office, or GAO, audits conducted during the last five years. The GAO even accused the Pentagon of exaggerating its successes in a bid to maintain public support for the programs. The administration also ignored five years of GAO warnings that U.S. aid - negotiated under Gore-Chernomyrdin - was paying the salaries of Russian scientists and technicians as they continued their clandestine work on nuclear-, chemical- and biological-weapons programs. Gore personally arranged for a subsequently aborted shipment of a $30 million chemical laboratory to a Russian general in charge of Moscow's chemical-weapons programs. That general, Anatoly Kuntsevich, turned out not only to be a supporter of ultranationalist Vladimir Zhirinovsky but was placed under arrest for allegedly selling precursor chemicals to a nerve-gas laboratory in Syria (see "Loving the Russian Bomb," Dec. 6, 1999). Poor due diligence and failure to perform standard security checks allowed the Russians to divert U.S. aid money to fund Moscow's clandestine and illegal biological-weapons program, as the Stimson Center, a liberal arms-control advocacy group, recently revealed to the New York Times. That money, according to the Stimson Center, was part of a Gore-Chernomyrdin program. ..."

INSIGHT Magazine 3/3/00 J Michael Waller "…..The recent State Department security scandal, in which a formerly Moscow-based firm now in Virginia was put under contract to write software for State Department computers, further underscores the problem, security experts tell Insight. To begin, the State Department by nature often is resentful or suspicious of security procedures….. Insight has learned that the former Soviet software technicians were given a room on that same floor, just a few doors down from the Oceans and Environment conference room in which the Russians planted the bug. The FBI and National Security Agency are going through each line of the computer code, written by Synergy International Systems, the company founded and run by former Soviet citizens, to check for viruses or "Trojan horses" that might have been planted to break through computer-security fire walls. ……"

INSIGHT Magazine 3/3/00 J Michael Waller "…..Such a see-no-evil attitude horrified security-minded members of the intelligence community when senior U.S. officials, in a failed attempt to persuade Russia to stop proliferating nuclear-warhead and missile technology to Iran, provided Moscow with the raw intelligence the CIA and other U.S. intelligence services collected that documented the proliferation. The same attitude caused the Defense Department to issue building passes to Russian military-intelligence officers, granting them free access to the Pentagon.. …."

Eagle Forum 3/3/00 Phyllis Schlafly "…..Concerns have faded about a Y2K breakdown of government computers, but Americans should be worried about how computer efficiency gives the federal government extraordinary powers to monitor the daily activities of law-abiding Americans. Unknown to most people, government databases are storing all kinds of personal information about every American. The Federal Communications Commission (FCC) has mandated that all wireless providers by 2001 be able to pinpoint the location of wireless phone calls. Cell phones are becoming homing devices for the government to track our whereabouts. The Federal Deposit Insurance Corporation (FDIC) tried to impose a regulation called Know Your Customer. It was a plan to require banks to make a computer profile of all their customers' deposits and withdrawals and report "inconsistent" transactions to a federal database in Detroit called the Suspicious Activity Reporting System. After the comment period produced more than 250,000 negative and only 3,000 positive comments, the FDIC backed down and on March 23 abandoned its plan temporarily. However, during congressional consideration of the big Financial Modernization bill last year, we discovered that many banks are already making customer profiles and selling them to telemarketers……."

Freeper SVTCobra 3/3/00 "……Go to the last FBI 302 report. Trie had a flight attendant for China Airlines working out of Seattle bring him "vitamins" when he was hiding out in China in 1997. Trie's secretary (the one shreading documents in Arkansas) shipped the "vitamins" to the Flight Attendant in Seattle who brought them on the plane back to China to forward to Trie. The FBI was waiting for her one time in Seattle when she picked up the package of "vitamins" and took her straight to Washington. You cannot obduct a person and take them to DC unless they are under subpena to testify before a grand jury or under arrest. Was it Smuggling? Spying? Payoff? ……..Plus another tidbit: Charlie Trie's daughter was a White House intern. Nice way to plant a listening device/bug in the White House. …."

Reuters 3/1/00 "…..The Senate Intelligence Committee on Wednesday voted unanimously to subpoena a former CIA attorney involved in the agency's investigation of former director John Deutch for having secret material on non-secure home computers. Michael O'Neil, a former CIA general counsel, was scheduled to appear before the committee on Wednesday but then declined on advice of his lawyer pending the completion of a review by Attorney General Janet Reno of the case. ……. The inspector general's report said the actions of O'Neil and former CIA Executive Director Nora Slatkin "had the effect of delaying a prompt and thorough investigation of this matter." The inspector general said O'Neil had held onto four computer storage cards from Deutch's home computer. ……"

Reuters 2/29/00 "…..President Clinton plans to nominate the CIA's second-in-command to head a new agency created amid last year's China spying scandal to oversee U.S. nuclear weapons programs, the Energy Department said on Thursday. Clinton intends to nominate Gen. John Gordon, deputy director of the Central Intelligence Agency, to the new post of Energy Undersecretary for Nuclear Security and Director of the National Nuclear Security Administration, the department said. Gordon was one of three candidates recommended by a search committee to lead the new agency, which formally began operating on March 1. He must be confirmed by the Senate. …..Gordon has worked in the past in weapons development, stockpile management, and arms control, and was a physicist at Sandia National Laboratories……"

The Ottawa Citizen 3/12/00 Tom Walker; Aidan Laverty "……American intelligence agents have admitted they helped to train the Kosovo Liberation Army before Nato's bombing of Yugoslavia. The disclosure has angered some European diplomats, who said the training undermined moves for a political solution to the conflict between Serbs and Albanians. Several KLA leaders had the mobile phone number of Gen. Wesley Clark, the Nato commander. Central Intelligence Agency officers were ceasefire monitors in Kosovo in 1998 and 1999, developing ties with the KLA and offering American military training and field advice on fighting the Yugoslav army and Serbian police. …."

LA Times 3/11/00 Scott Martelle Jack Leonard "……Police on Friday pulled high-powered military explosives and a cache of weapons from the yard of Dr. Larry C. Ford, a biomedical researcher who killed himself earlier this week and whose business partner was targeted by a gunman....,, By Friday night, police had discovered two packages of military-grade C-4 explosives and blasting caps in one canister. Four other canisters contained weapons and ammunition, said Irvine Police Lt. Sam Allevato. Officials believe the explosives were being stored rather than used as some sort of booby trap because they lacked the electrical connections that would be needed to set them off……. Investigators also revealed Friday that the sources who led them to dig in Ford's yard said the canisters contained AIDS-related biomedical research material similar to that found in jars inside Ford's home last week. But no such material was found in the initial examination, police said, and the containers will not be opened until they arrive in Virginia. ......"

LA Times 3/11/00 Scott Martelle Jack Leonard "……Meanwhile, speculation continued over Ford's possible links to intelligence agencies and biological weapons. A lawyer representing the Ford family said that detectives told the doctor's widow, Diane, that her husband had some involvement with the Central Intelligence Agency……… Ford and Riley were partners in the Irvine biomedical firm Biofem, which is developing a female contraceptive suppository designed to retard the spread of sexually transmitted diseases, including HIV. Riley survived a shooting March 2. Three days later, Ford killed himself. Police have said they believe the motive for the attempt on Riley's life was financial……"

LA Times 3/11/00 Scott Martelle Jack Leonard "…… Meanwhile Friday, more details emerged of Ford's relationship with key people involved in South Africa's military. Several doctors in South Africa said Ford did work on commercial drug products at a military laboratory and advised the country's defense forces on how to protect personnel against biological and chemical weapons……..Dr. Neil Knobel, a former military surgeon general in South Africa who had administrative responsibility for the weapons program, described Ford as a brilliant scientist who was knowledgeable about a wide range of fields, including biochemical warfare. Knobel said Ford was not involved in any biological weapons development. During the Gulf War, Knobel said, he asked Ford for informal advice on protecting South African forces based in Tel Aviv from biochemical weapons. Ford, he said, sent a fax on LAFOR Laboratories letterhead explaining chemical weapons that Iraq might have. "He even arranged for antitoxins to be delivered to our personnel in Tel Aviv," Knobel said, "so he clearly had influence somewhere." ......"

 

New York Times 11/23/98 James Risen "…..When the Central Intelligence Agency uncovered what its analysts considered to be conclusive evidence of the personal corruption of Prime Minister Viktor S. Chernomyrdin of Russia in 1995, they sent it to the White House, expecting Clinton Administration officials to be impressed with their work. Instead, when the secret C.I.A. report on Mr. Chernomyrdin arrived in the office of Vice President Al Gore, it was rejected and sent back to the C.I.A. with a barnyard epithet scrawled across its cover, according to several intelligence officials familiar with the incident. At C.I.A. headquarters in Langley, Va., the message seemed clear: The Vice President did not want to hear allegations that Mr. Chernomyrdin was corrupt and was not interested in further intelligence reports on the matter. As a result, C.I.A. analysts say they are now censoring themselves......."

New York Times 11/23/98 James Risen "…..When, for instance, the agency found that it cost a German business executive $1 million just to get a meeting with Mr. Chernomyrdin to discuss deals in Russia, it decided not to circulate the report outside the C.I.A., officials said. Mr. Gore, who held regular talks with Mr. Chernomyrdin that became an important channel for relations with Russia, declined to comment on the handling of the report. ''I never discuss top-secret documents,'' Mr. Gore said in an interview…… ''The real attitude around here about intelligence is, can't do business without it,'' the aide said. But that was not the lesson learned at the C.I.A. The incident has fostered a perception in the agency's ranks that the Administration is dismissive of ''inconvenient'' intelligence about corruption among the Russian leaders with whom White House and State Department officials have developed close personal relationships......."

New York Times 11/23/98 James Risen "…..''What does the C.I.A. want us to do, not deal with the Prime Minister of Russia?'' a senior Administration official said. This disagreement between the C.I.A. and the White House has flared during Russia's economic crisis, and C.I.A. officials argue that the White House should be more interested in unvarnished information about corruption in Moscow, especially as the United States and other nations were trying to determine whether Russia deserved billions' more in Western aid money. ….."

Associated Press 3/23/00 Jim Abrams "…….The Senate Judiciary Committee, over the objections of its Democrats and the Justice Department, on Thursday voted to subpoena two federal attorneys to discuss the light sentence given a scientist suspected of spying for China. Sen. Arlen Specter, R-Pa., demanded the subpoenas of Justice Department Criminal Division line attorney Michael Liebman and former attorney Jonathan Shapiro, saying "we have been extraordinarily, exhaustively patient" with the department but "we've had precious little cooperation." The vote was 10 -6, along party lines. Specter plans to hold a hearing next Wednesday on the case of Taiwanese-American scientist Peter Lee, who reached a plea bargain with the Justice Department and escaped prison time despite reports that he had passed advanced radar technology secrets to China. Specter said he wanted to find out why a plea bargain was struck before a full damage assessment of the alleged espionage was completed…….. But Assistant Attorney General James Robinson, in a letter to Judiciary Committee Chairman Orrin Hatch, R-Utah, Thursday, argued that the department had discussed the case extensively with the Senate and that subpoenaing two line attorneys who did not make final prosecution decisions in the Lee case would have a "chilling effect" on prosecutors.......... Hatch said he too was worried about the precedent of issuing subpoenas but was supporting the action because "I think Arlen's been jerked around enough." ……."

Associated Press 3/24/00 "….. Federal investigators have conceded that a senior immigration official charged with espionage may not be a Cuban spy after all, The Miami Herald reported Friday. Investigators have filed no evidence in court showing Mariano Faget ever passed secrets to the Cuban government, the newspaper said, citing an unidentified senior law enforcement official familiar with the case. Richard Gregorie, senior litigation counsel at the U.S. Attorney's Office in Miami, declined comment to the Herald. FBI officials said Faget still violated the Espionage Act by revealing classified information to a friend and lying about his contacts with Cuban officials over a 14-month period. ……."

 

The Associated Press 3/22/00 "……The head of the Central Intelligence Agency says the United States is more vulnerable than ever to surprise. ``More than ever, we risk substantial surprise,'' George Tenet told a Senate Foreign Relations Committee hearing Tuesday on weapons proliferation. ``This is not for lack of effort on the part of the intelligence community. It results from significant effort on the part of proliferators.'' ……."

WorldNetDaily 3/22/00 Charles Smith "…… The Chinese M-11 is an advanced, solid fuel, road mobile, tactical nuclear missile. The People's Liberation Army Second Artillery Corps is equipped with large numbers of M-11 missiles. Nearly 300 M-11s are deployed across from Taiwan, inside occupied Tibet, opposite India and close to the North Korean border. The M-11 is also called the "Dong Feng" 11 or "East Wind" -- a Maoist slogan. Despite the small warhead, only half that of the Hiroshima atomic bomb, an M-11 detonated over any heavily populated third-world city would result in a million casualties. Pakistan has M-11 nuclear-tipped missiles only four minutes from India. The M-11 missiles are based at an air force base in Sargodha, west of Lahore and right next to the Pakistani plutonium reactor at Khushab. The single base is also a prime target for India's small nuclear force for a pre-emptive attack. If the Clinton administration were to recognize the Chinese M-11 missiles in Pakistan, then, according to international treaties, the President would be forced to impose trade restrictions on China. Instead, Bill Clinton will be only a few miles from the M-11 missiles during his tour of Pakistan. The official White House line is that these missiles don't exist. ….."

WorldNetDaily 3/22/00 Charles Smith "…… China Aerospace and Great Wall Industries manufacture the M-11. The missiles sold to Pakistan are enclosed in their launching canisters and can be deployed on multi-wheeled trucks to any road in Pakistan. The missile sale also came to the attention of the United States, which imposed sanctions....... In addition, according to various intelligence sources, the recent Pakistani nuclear tests were of a design obtained from China. The advanced Chinese design was put together using American built supercomputers supplied by the Clinton administration directly to Chinese nuclear weapons facilities. The Chinese, unable to test the warhead for political reasons, enlisted Pakistan in exchange for information on building warheads for the M-11. The Clinton foreign policy toward India has destabilized the entire region……."

WorldNetDaily 3/22/00 Charles Smith "…… The lack of intelligence information and focus took the world hostage in 1998. The CIA and NSA under Clinton never detected the Indian nuclear tests. Why? Documents obtained from the U.S. Commerce Department show that India obtained secure-encryption and fiber-optic communications systems from America that helped hide their 1998 A-bomb tests. The 1995 trade trip to India by Ron Brown shows that U.S companies such as Motorola, Loral's Globalstar and AT&T met with Indian officials on the purchase of advanced encrypted communications systems. Previously, the U.S. had pressured India not to conduct more A-bomb tests. U.S. intelligence sources were able to detect the planned series of Indian A-bomb tests because the NSA had directed CIA reconnaissance satellites to take photographs, using communications intercepts from Indian atomic energy sites. In 1998, U.S. intelligence agencies, led by the CIA, were unable to track Indian communications within the remote desert site where the recent A-bomb tests were conducted. India used U.S. encryption and secure, fiber-optic communications systems to hide the activity, allowing the test to be conducted without alerting U.S. officials. ……"

CNSNews.com 3/15/00 Gary Aldrich "…….During the past several years, two alarming trends have grown to such huge proportions that we as citizens should fear for our own safety. The first of these is the dramatic increase in incidents which adversely affect national security. Almost one year ago I issued a press release about the Cox Report, which warned that lapses in security in the Department of Energy exposed our country's most vital nuclear secrets to exploitation by foreign agents. It was a warning that was only half heard - another case of too little, too late. Before that, the CEO of Loral - a generous supporter of President Clinton and the Democratic Party - received executive approval to sell sensitive technology to the Chinese which enabled their ICBM's to accurately target U.S. territory………. The second alarming trend is the federal government's unwillingness or inability to correct security lapses and hold people accountable for their actions. For example, Attorney General Reno and other Justice Department officials have blocked FBI efforts to resolve the Los Alamos spy case. Secretary of Defense Cohen has presided over a harmful anthrax vaccination program which has driven hundreds of highly motivated, highly skilled citizen soldiers out of the military. And, former CIA Director Deutch personally removed 17,000 pages of classified documents from the agency and transferred them to his own computer. What were his motives? Will we ever find out under this administration? I doubt it, but at least this administration is coming to an end……."

New Scientist 3/11/00 Barry Fox "…… INTELLIGENCE agencies won't have any trouble working out how to snoop unnoticed on satellite phone calls. The information has just been published in patents filed by Motorola in the US and Europe. Motorola developed the first cellphone system more than 20 years ago, along with the exchanges that connect standard cellphones to the public telephone network. It then went on to develop satellite telephone technology for the Iridium and Teledesic services. To stress the value of the ideas in its patents, Motorola first explains how the security services eavesdrop on conventional cellphone calls: snoopers set up a monitoring station at the exchange where cellphone calls are connected to the fixed public phone network, and simply tap into the link. Motorola then points out that this would often not be possible with satellite phone calls. Like cellphone systems, they route some calls through the public phone network via gateways on the ground, and these are easy to intercept……"

 

Washington Post 3/30/00 John Mintz "…..The FBI and the Justice Department mishandled a major espionage case last year, leading the government to accept a light sentence for a scientist who released nuclear secrets so sensitive that the law allowed for the death penalty, several senators charged Wednesday. The revelation is part of an ongoing investigation by the Senate Judiciary Committee into the release of the nation's nuclear weapons secrets to the Chinese government. At a Wednesday hearing led by Sen. Arlen Specter, R-Pa., several senators raised concerns about the sentencing of Peter Lee, a former nuclear weapons scientist at the Lawrence Livermore National Laboratory. Lee confessed to disclosing U.S. nuclear secrets to Chinese scientist during trips to China in 1985 and 1997. A government technical expert testified at the hearing that the information Lee gave to the Chinese scientists dealt with a critical piece of U.S. submarine technology. According to Specter, Lee's crime is governed by a section of U.S. criminal law that authorizes prosecutors to pursue either life imprisonment or the death penalty. Instead, Lee was allowed to enter a plea bargain, which resulted in a sentence of three years probation, one year in a halfway house and a cash fine. ……"

Scripps Howard News Service 3/28/00 Lance Gay "......FBI Director Louis Freeh asked Congress Tuesday for broader wiretapping authority and tougher penalties to deal with computer hackers and pranksters who could cripple Internet businesses. While the media has highlighted the hacking exploits of convicted hacker Kevin Mitnick and underground anarchists, Freeh warned corporate executives that the source of most computer disruptions is coming from within their own companies. Seventy percent of the intrusion incidents the FBI has investigated were traced to employees or other insiders. Computer experts say that Internet technology is moving so fast that there is little Congress or the police can do to make the Internet invulnerable to attacks. They also said that businesses are making so much money on Internet start-ups, companies don't view computer security as a high priority. ....."

New York Times 4/3/00 "……Heeding the objections of scientists, the Energy Department has dropped part of a plan to make foreign nationals at its laboratories wear badges stating the countries they are from. The plan, developed after a Taiwan-born American citizen, Wen Ho Lee, was accused of mishandling nuclear secrets, was to add the name of each scientist's country to the red badges they wear identifying them as foreign nationals, and to require them to wear the badges at all times. But American and foreign scientists had complained that in laboratories that did little or no classified work, the badges did not, as an Energy Department spokeswoman put it, "foster an atmosphere where open science can be done." Energy Secretary Bill Richardson announced on Friday during a visit here to Brookhaven National Laboratory, that at Brookhaven and other laboratories to be determined later, no one would have to wear a badge. "There is a difference between Brookhaven National Laboratory and classified labs like Los Alamos," Mr. Richardson said after attending a dedication ceremony at the Long Island laboratory for a new fuel cell, which produces electricity through a chemical reaction. "All employees have to wear badges in classified areas. The majority of work done at B.N.L. is unclassified, so they will not have to wear badges. Period." ......"

Worldnet Daily 4/3/00 J R Nyquist "……. We are a permissive society. We are lax, we are easy-going, and the situation is out of hand. Enemies are out there: aggressive dictatorships who want to spy on us, to steal from us, to inflict humiliation and loss on us. And to prevent this we need discipline and order; we need tough laws and reliable enforcement. We cannot afford to be lax or permissive. We need a competent counterintelligence establishment. But this we do not have. ……. In the United States the security situation is equally dismal, but the incompetence is more systemic. Earlier this month the FBI turned down a request by the Department of Defense to help in identifying Chinese front companies. According to an amendment of the fiscal year 1999 Defense Authorization Act, the Pentagon is obligated to produce a list of Chinese-controlled companies operating in the United States. But the FBI refuses to lend a hand. If this, in itself, is not outrageous, then consider the fact that the Pentagon does not -- apparently -- know how to comply with the law. It does not have a counterintelligence capability worthy of the name. And that is why it went begging to the FBI. Actually, the Pentagon was supposed to publish the list of Chinese-controlled companies by Jan. 15, 1999. Now it is 15 months later. Ultimately the blame rests with President Clinton. The White House could have intervened to get FBI cooperation for the Pentagon, but no intervention took place. Representative Chris Cox, in a Sept. 24 statement, noted, "The Clinton-Gore administration's failure to obey the law is knowing, willful and longstanding." There is, in fact, a colossal chain of negligence mixed with incompetence in our security establishment. The president is merely at the top of this chain. The Cox Report, which was the unanimous and bipartisan report of the House Select Committee on the China security problem, said, "The People's Republic of China (PRC) has stolen classified information on all of the United States' most advanced thermonuclear weapons, and several of the associated reentry vehicles." The Cox Report also says that significant Chinese espionage was discovered in 1995, but "the President was not briefed about the counterintelligence failures until early 1998." ........."

Newsmax.com 4/2/00 UPI "……The North Atlantic Treaty Organization on Sunday widened an investigation after a nine-page document detailing the alliance's rules of engagement in the southern Yugoslav province of Kosovo appeared on the Internet. A British Ministry of Defense spokesman told United Press International that NATO took charge of the investigation after initial inquiries by British officials were triggered by the appearance of the document on the Internet. He said Britain would be cooperating with the NATO investigation to establish the source of the leak, which was first reported by the Sunday Telegraph newspaper. The newspaper said that the document showed up on the computer screens of a London publishing company and possibly in other parts of the world, by way of the Internet. ……."

Telegraph/UK 4/2/00 Adam Lusher Sean Thomas "……A SECURITY blunder allowed sensitive Nato military plans to turn up on the internet, The Telegraph can reveal. British intelligence is investigating how the nine-page document, which details the rules of engagement for Nato soldiers serving in Kosovo, began flashing up on the computer screens of a London publishing company. An employee of the magazine publishers who asked not to be named said: "It's not really what you expect to find on your computer first thing in the morning - something telling you in fairly neutral language the circumstances under which you can kill someone in Kosovo. One of the people in the office was pretty disturbed by it." The security breach - attributed to an unspecified "mistake" - is deeply embarrassing for Western defence and intelligence services. It comes after disclosures in the past fortnight that agents of MI5 and MI6 had lost laptop computers containing secret information. The full extent of the latest leak was still unclear last night, but it is likely that internet users all over the world will be able to view the Nato plans. Jamie Shea, the Nato spokesman, expressed alarm. He said: "If it proves true that a Nato document has got into the public domain, it will be a matter of great concern to us. These are sensitive Nato documents. We would like to keep them classified and prevent them being compromised." ……"

New York Times 4/17/00 Steven Myers "……In an attempt to unravel what really happened, spurred in part by articles in two European newspapers suggesting that the bombing had been deliberate, The New York Times interviewed more than 30 officials in Washington and in Europe. While the investigation produced no evidence that the bombing of the embassy had been a deliberate act, it provided a detailed account of a broader set of missteps than the United States or NATO have acknowledged, and a wider circle of blame than the government's explanation of a simple error of judgment by a few people at the C.I.A. ………. None of the people interviewed at the Pentagon, C.I.A., the State Department and the military mapping agency, or at NATO offices in Brussels, Mons, Vicenza, Italy and Paris said they had ever seen any document discussing targeting of the embassy, nor any approval given to do so. No one asserted that he or she knew that such an order had been given. The bombing resulted from error piled upon incompetence piled upon bad judgment in a variety of places -- from a frantic rush to approve targets to questionable reliance on inexpert officers to an inexplicable failure to consult the people who might have averted disaster, according to the officials. In retrospect, they said, the bombing, if not intended, could have been avoided at several points along the way. ………. Last week, 11 months after the fact, the director of central intelligence, George J. Tenet, dismissed a midlevel officer who put the X on what turned out to be the embassy. He also disciplined six other employees, saying that agency officers "at all levels of responsibility" contributed to the bombing. ……."

Columbus Dispatch 4/17/00 AP "……A Cleveland Clinic researcher who abruptly left the country for his native Japan last summer is the target of an FBI investigation of alleged economic espionage, The Plain Dealer reported. Just as the investigation began, Dr. Takashi Okamoto, 39, resigned from the research hospital for a job with a brain-research institute funded in part by the Japanese government. Okamoto had done promising work in Alzheimer's disease and multiple sclerosis, according to the newspaper, which said he left behind a lab in disarray, with thousands of dollars worth of materials missing. Valuable biological samples also had been sabotaged. ….."

Washington Post 4/17/00 Steven Mufson "……. A laptop computer containing top-secret information vanished from the State Department's Bureau of Intelligence and Research more than a week ago, and the FBI is investigating whether it was stolen, a senior State Department official said. The laptop's disappearance from a supposedly secure conference room at the department has set off an intense effort to recover the computer and a search for suspects, including contractors who have been renovating the area, the official said....... The senior State Department official added that the laptop's disappearance was not the result of poor security procedures, but rather the failure of State employees to follow those procedures. He said it appeared that some contractors had not been properly escorted when working in the building……."

Associated Press via Yahoo! News 4/17/00 Martha Waggoner "……The truth is out there - on the Web. Photos of Area 51, the super-secret Air Force test site in Nevada that has long tantalized UFO and conspiracy buffs and fans of ``The X-Files,'' are being posted on the Internet. ``This is the first glimpse into the most secret training and testing facility for the Air Force,'' said John Hoffman, president of Aerial Images Inc. of Raleigh. ………. The Air Force only recently acknowledged that Groom Dry Lake Air Force Base even exists. The 8,000-square-mile base is 75 miles northwest of Las Vegas, in the arid, rugged Nellis Range. Beginning with the U-2 spy plane in the 1950s, the base has been the testing ground for a host of top-secret aircraft, including the SR-71 Blackbird and, more recently, the F-117A stealth fighter and B-2 stealth bomber………. ``There are runways, there are buildings, there are buses, there are test sites, but there aren't any little green men or super-secret aircraft to be seen,'' Hoffman said of the new photos……… Aerial Images, at www.terraserver.com, planned to offer a link to the Area 51 pages. Viewing the images is free; downloading them costs $8.95 and up. Kodak will print photographs for $20 to $30……… The images show craters, some seemingly formed by something dropped from the sky, others possibly by something coming out of the ground. There are hundreds of buildings, living quarters, tennis courts, a baseball field, a track and a swimming pool……… There are no paved roads and no parking lots; buses are the only visible vehicles, raising the question of how employees get to and from work. Unpaved roads disappear into cliffsides, suggesting a possible underground network…….."

NY Times 4/15/00 William Broad "…..The computer files at the heart of the case against the former Los Alamos scientist Wen Ho Lee were given higher security classifications last year only after he was fired in the midst of an espionage investigation at the weapons laboratory, defense lawyers and federal officials say. At the time Dr. Lee downloaded the files onto his computer, they were classified but not designated secret or confidential, as the indictment against him alleges. Instead, they were governed by a lower kind of security precaution, according to both sides in the case, as well as a document that federal prosecutors filed as evidence……… The downloaded material had a security designation "protect as restricted data," or PARD, a category applied to scientific data so voluminous and changing so frequently as to be impossible to assess in terms of security. It is not a security classification per se, but rather a rule for handling potentially sensitive materials, and is governed by the secrecy provisions of the nation's atomic energy laws. While PARD material by definition is classified and the designation holds out the possibility that some of it might be highly sensitive, it is not subject to the same stringent precautions applied to data designated secret or confidential. For example, scientists working with it may leave it on their desks overnight, rather than in a safe. ……Still, PARD data must be kept in secure premises at the weapons laboratory; by law it cannot be transferred onto unsecured computers, as the government has charged Dr. Lee with doing. Both sides in the case agree that the material Dr. Lee is accused of downloading contained nuclear secrets….."

NY Times 4/15/00 William Broad "…..A senior administration weapons expert strongly contested the idea that the PARD behind the Lee indictment was any less important than more concentrated data on nuclear arms. "A duck is a duck is a duck," the official said. The defense team countered, though, that any critical information was buried in a virtually indecipherable mass of benign data…….."

AP 4/13/00 Tom Raum "…….A Pentagon computer malfunction hampered the ability of U.S. intelligence agencies to process pictures from spy satellites for several weeks last summer. But intelligence officials suggest it could have been worse. The breakdown happened at a time when the world was relatively free of trouble spots, allowing analysts to use older, slower methods to distribute and examine selected photos, said officials who spoke on the condition of anonymity. Meanwhile, the director of the super-secret National Security Agency, Air Force Lt. Gen. Michael V. Hayden, told a congressional hearing on Wednesday that his surveillance agency isn't eavesdropping on private communications from ordinary Americans -- either at home or abroad. ''We are not out there as a vacuum cleaner,'' said Hayden. ……"

Reuters 4/13/00 "……..In 1983, agents questioned Lee about the phone call to Min, the newspaper said. According to the testimony of FBI agent Robert Messemer, Lee lied and said he did not know the other scientist, and did not know how to get in touch with him. The Mercury News said the alleged deception was important to government prosecutors, who are attempting to prove that Lee has a history of duplicity and ill-intent. Messemer said that when Lee was confronted with the wiretap evidence, he admitted making the phone call to Min. But Lee went on to say that the conversation had nothing to do with espionage, the Mercury News reported. He said instead that he had been providing unclassified documents about nuclear reactors to the Taiwanese government and that he was worried Min was in trouble for doing the same thing……"

San Jose Mercury News 4/13/00 Dan Stober "….. It was a telephone call overheard on a wiretap 17 years ago that first brought Wen Ho Lee, a Los Alamos National Laboratory scientist, to the attention of the FBI. Lee had called a man under investigation for allegedly providing secrets about the neutron bomb to China in the late 1970s…….. Now, for the first time, the man whose phone the FBI bugged has been identified through a court document obtained by the Mercury News. His name is Gwo-Bao Min, 61, of Danville, a former nuclear weapons engineer at Lawrence Livermore National Laboratory. ......... Min's case arose at the same time that China's efforts to obtain U.S. atomic secrets were blossoming, intelligence officials say. Min was never charged with any crime, but he was forced to resign from the lab in 1981. Since then, he has lived in Contra Costa County and has been active in trade ventures in China. His 1982 phone conversation with Lee has emerged as an important piece of the prosecution's case against Lee……"

San Jose Mercury News 4/13/00 Dan Stober "…..On Dec. 2, 1982, the phone rang in Min's home. The FBI was eavesdropping. The caller identified himself as Wen Ho Lee, a nuclear weapons designer with a high-level security clearance at Livermore's sister laboratory in New Mexico. After mentioning a mutual friend, Lee got to the point: He had heard that Min was in some kind of trouble, and he wanted to help. According to the FBI translation of the conversation, which was in Mandarin, Lee told Min that he could find out who had ``squealed'' on him. Min was indeed having troubles. He was the FBI's prime suspect in the alleged loss of neutron bomb secrets, according to government officials as well as co-workers and friends of Min's. ….."

San Jose Mercury News 4/13/00 Dan Stober "….. A congressional committee has made further allegations against Min, without mentioning him by name. ``In addition to design information about the W-70 (the neutron bomb), this suspect may have provided to the PRC (People's Republic of China) additional classified information about other U.S. weapons that could have significantly accelerated the PRC's nuclear weapons program,'' according to the 1999 report of the U.S. House of Representatives select committee headed by Rep. Christopher Cox, a Republican from Newport Beach……… To the FBI, Min is known as ``Tiger Trap,'' the code name given to the investigation of his activities……… The original neutron bomb was built at Lawrence Livermore in the 1970s; the Chinese first tested a neutron bomb in 1988. The weapon made headlines last month when a Chinese military newspaper threatened to use neutron bombs to capture Taiwan if it declared independence……"

San Jose Mercury News 4/13/00 Dan Stober "….. Min was born in Taiwan in 1939, a few months before Wen Ho Lee. In 1962, after graduating from Taiwan National University with an engineering degree, he came to the United States. Min earned a master's degree in engineering from West Virginia University, then, in 1970, a doctorate in aerospace engineering from the University of Michigan. He became a U.S. citizen and went to work for Lawrence Livermore on Nov. 3, 1975……… Min worked in the lab's D-Division, which does not design nuclear weapons but conducts studies of their military uses. He had an office on the second floor of Building 111, where the lab's most important administrators and weapons designers worked…..Min left the lab on Feb. 10, 1981, according to laboratory records. The former co-worker said he was told by administrators that Min had been ``allowed to resign.'' ………The FBI continued its investigation of Min after his dismissal. Under the authority of a special warrant approved by the secretive United States Foreign Intelligence Surveillance Court in Washington, the FBI conducted electronic surveillance of Min, including a wiretap on his home phone in Danville. It was this wiretap that recorded the Dec. 2, 1982, phone call from Wen Ho Lee. After the call, the FBI immediately opened an investigation of Lee, with agents pretending to be conducting a routine background check required for the renewal of Lee's security clearance. ......"

San Jose Mercury News 4/13/00 Dan Stober "….. The FBI did not interview Lee about the conversation until 11 months later. When he was approached, in November 1983, Lee lied, according to the testimony of FBI agent Robert Messemer. Lee said he did not know Min, had not talked to him and did not know how to get in touch with him, Messemer said during a bail hearing for Lee after his arrest. That encounter was described by Messemer as the first deception in a long string of lies and misrepresentations by Lee. It is a vital list for the federal prosecutors because they are relying on it to demonstrate, indirectly, that Lee acted with ill intent when he downloaded the classified computer programs. When FBI agents confronted Lee with the wiretap information on Dec. 20, 1983, he admitted he had made the phone call to Min from his office at Los Alamos, Messemer said. ……"

San Jose Mercury News 4/13/00 Dan Stober "…..After Lee admitted making the phone call, the FBI asked him to aid its investigation of Min, and he agreed. It would be a ``false flag'' operation, in which Lee would pretend to be an agent working for China. He would phone Min and attempt to win Min's cooperation in espionage. When the phone call fizzled, the FBI paid for Lee to go to Min's Danville home, apparently wearing a hidden microphone. The details of what happened are not publicly known, but Min did not respond to Lee's enticements. ……….. Officials familiar with the investigation allege that Min had gathered information about weapons designs. ``He was going to the library and getting lots of stuff that had nothing to do with his job,'' said one official familiar with the case. ``We did not design nuclear warheads (in D-Division), but we had access to all that stuff,'' said one of Min's co-workers. ``They're classified documents and you go down and check them out. There's a classified library and you sign your name to show what you checked out.'' ……."

San Jose Mercury News 4/13/00 Dan Stober "…..Min was eventually confronted and questioned by FBI agent William Cleveland, who was then the chief spy-catcher in the bureau's San Francisco office. Min maintained his innocence. Min was not the only person questioned. The President's Foreign Intelligence Advisory Board reported last year, somewhat cryptically, that there was no prosecution in the neutron bomb case because neither the ``suspect'' nor the ``foreign agent'' would confess…….. The case against Min, while never officially closed, grew cold in the early-1980s, according to the report of the President's Foreign Intelligence Advisory Board. Officials were then surprised to discover that Min took a half-dozen trips to China in the mid-1980s, according to knowledgeable officials……"

San Jose Mercury News 4/13/00 Dan Stober "…..Min has had a business license for Min's Consulting Associates since at least 1983. It and his other business, Grand Monde Trading, share an upstairs office with other small businesses in downtown Danville. Today, according to Loh, Min does mostly consulting work. ``If an American company wants to start doing business in China, he can help you do that,'' Loh said. For years, Loh said, Min has helped arrange scholarships for Chinese students to study in the United States, particularly students in law and business. Loh said he met Min through Min's latest business interest, involvement in the World Marketing Alliance, a ``network marketing'' company that sells insurance and financial investments. Emphasis is placed on recruiting new participants. ……… Min has no love for the Nationalists or the mainland Communists, instead supporting Taiwan's Democratic Progressive Party, Loh said. ``Min is pro-independence, so why would he give information to communist China?'' Loh said. ……"

Mercury News 4/13/00 Dan Stober "……..A key concern of investigators was whether China used stolen technical information to learn the tricks of shrinking the size of thermonuclear warheads. A smaller warhead weighs less and can be delivered over a longer distance by a missile, thus potentially expanding the number of U.S. cities that could be struck by Chinese missiles in a war. Smaller nuclear warheads would also make it easier for China to deploy mobile missiles, towed by trucks, that are difficult for an enemy to find and attack. ``Mobile ICBMs (intercontinental ballistic missiles) will require smaller, more compact warheads. The stolen U.S. information on the W-70 (the neutron bomb) or W-88 Trident D-5 will be useful for this purpose,'' noted the 1999 report of a U.S. House of Representatives committee headed by Rep. Christopher Cox, R-Newport Beach. ……… That is true of the W-88, the sophisticated warhead for the Trident submarine-launched missile that has been at the heart of the investigation of Lee. But it is also true of the less sophisticated W-70, the Lance missile warhead that Gwo-Bao Min was suspected of compromising……"

AP 4/14/00 Bryson Hull "…….A Justice Department investigation will be launched in the 1993 arms-dealing case involving former CIA officer Edwin P. Wilson, government attorneys say. The disclosure came Thursday in the department's response to a motion by Wilson to hold 17 current and former CIA and Justice officials in contempt of court for allegedly hiding evidence that would have helped his defense. ''The allegations of this case have been referred to (the Office of Professional Responsibility), which will conduct a thorough investigation,'' a footnote near the end of the government's eight-page motion said. Justice spokesman Myron Marlin said the department will not begin looking into the matter until a court appeal by Wilson, 71, is settled. Wilson, who was sentenced to 52 years in prison, is appealing his federal conviction for illegally shipping 20 tons of plastic explosives to Libya from Houston's Intercontinental Airport. ……. "

Washington Post 4/4/00 Vernon Loeb "…….Specter asked last week at a hearing why prosecutors hadn't used a death penalty section of the espionage statute in prosecuting Lee, a laser scientist at TRW Inc. who has admitted passing nuclear secrets to Beijing but spent only 12 months in a halfway house. Tomorrow, Specter will hear from two senior attorneys from the criminal division who supervised the prosecution, John Dion and Michael Liebman, and the lead prosecutor in Los Angeles, former assistant U.S. attorney Jonathan Shapiro. Sparks should fly. ………..FBI agents confronted Lee in 1997, after he failed to report a trip that year to China, as required under the terms of his government security clearance. After failing an FBI polygraph examination, Lee confessed to passing nuclear secrets to Beijing in 1985, while working as a physicist at Los Alamos National Laboratory. ….. The Justice Department ultimately accepted a plea agreement from Lee on two felony charges that fell far short of a full espionage conviction punishable by death--one for passing classified nuclear secrets in 1985 and one for lying to the government about the purpose of his 1997 trip, when he also revealed classified information to Chinese scientists about his work at TRW involving space radar imaging of submarines. ……"

Washington Post 4/4/00 Vernon Loeb "…….Department officials have previously explained that they accepted the plea agreement because the information Lee had given China had by then been declassified. They say they decided against prosecuting Lee for passing classified information during his 1997 trip, because much of what Lee had divulged had already been revealed in press accounts. But John G. Schuster Jr., a Navy branch chief in submarine security and technology, testified last week that Lee had revealed information classified "confidential . . . that was not in the public domain" during the 1997 trip. ……. Daniel Sayner, an FBI official, testified that Lee failed another FBI polygraph in February 1998, after having negotiated his plea agreement, leading investigators to conclude he had not revealed all of the secrets that he had passed to China. …….Given that failed polygraph, Specter may ask Justice Department lawyers tomorrow why they didn't immediately back out of the deal. ……"

AP 4/3/00 Robert Burns "…….The CIA lost so many Korean agents in futile attempts to operate behind enemy lines in the Korean War that the agency later privately assessed its use of American-trained loyalists as "morally reprehensible," declassified records show. This frank judgment is significant not only for the internal angst it exposes but also because the Central Intelligence Agency had never before publicly acknowledged the scope or the outcome of its covert operations during the war. The records show the CIA sent untold numbers of agents - in the thousands, judging from the censored documents - into North Korea during the 1950-53 war. Their missions ranged from intelligence collection to establishing "escape and evasion," or E&E, networks to rescue downed U.S. pilots. "E&E operations as conducted by CIA in Korea were not only ineffective but probably morally reprehensible in that the number of lives lost and the amount of time and treasure expended was enormously disproportionate to attainments therefrom," a July 1973 CIA historical review said, quoting from a January 1954 report by the Korea Branch chief at CIA headquarters.

WALL STREET JOURNAL 4/3/00 Neil King Jr. "……..When Kathy DeMartini and her team from PDH Inc. wandered into Gilman Louie's office early this year, they had a dull company name and a business plan with little punch. Potential investors yawned. Then the chief of the Central Intelligence Agency's new venture-capital firm, In-Q-Tel, took a closer look. "They had some cool stuff," says Mr. Louie. "I looked it over and said, 'Wow.' " What PDH had was software to track and control the movement of digital information. It hoped to build a business hawking the technology to people selling music over the Web. But Mr. Louie saw a wider audience that included the CIA, which badly needs a new information-security system for its legions of analysts and spies. So did In-Q-Tel write a purchase order? Draw up a contract? Not a chance. It's well past simple procurement. It's out to encourage innovation and deliver to the CIA the best that the market can offer. Instead, In-Q-Tel took a $2.25 million gamble and formed a company with PDH called Mediasnap Inc. The start-up, launched last month, is now racing to unveil a retail Web site where anyone from musicians to authors can sell his wares directly to the public. "An eBay for digital information," Ms. DeMartini calls it. Mediasnap has talked with software giant Oracle Corp. and former members of the Grateful Dead……"

Newsunlimited via Drudge 4/5/00 "……. Papers found on a pavement near the Aldermaston nuclear weapons factory in Berkshire reveal secrets about the government's plans to develop new weapons. The papers, dated March 10, will embarrass the Ministry of Defence because they give targets for nuclear weapons research, development and production, including collaboration with the French and Americans. The government's only official announcement is that it will "maintain a capability" for nuclear weapons. The new weapons are to replace the 100 kilotonne warheads on Trident submarines. These are five times the size of the Hiroshima bomb and enough to wipe out the centre of Moscow. ..."

CNN.COM 4/5/00 Reuters "……Russia's FSB domestic security service said Wednesday it had detained a U.S. citizen and a Russian accomplice for suspected espionage, a move likely to further strain Moscow's troubled ties with Washington. In a statement, the FSB said the American, whom it did not name, was the head of a private firm who had earlier worked for U.S. intelligence. The Russian was described as a specialist in defense technology at a Moscow organization. "Materials obtained during the course of the investigations shows the foreigner deliberately established contacts over a long period of time with Russian scientists in Moscow, Novosibirsk (in Siberia) and other cities of our country with a view to collecting information comprising Russian state secrets," the statement said. …."

AFP 4/4/00 Straits Times "……. LONDON -- Secret strategy documents about Britain's nuclear weapon plans have turned up on a public pavement, according to press reports on Wednesday. If confirmed, the discovery would be the third embarrassing security lapse in a month. In March, newspapers reported how agents at the country's two intelligence services lost laptop computers, one containing encrypted details on Northern Ireland and the other training information. Now the Ministry of Defence has launched an inquiry into the reported find of documents on a pavement outside the Aldermaston nuclear weapons factory in Berkshire, northwest of London. According to the Daily Telegraph and the Guardian, they detail plans to reduce the size of warheads on submarine-based nuclear missiles, and joint projects with the French and Americans. ….."

World Net Daily 4/5/00 Charles Smith "….The Chinese Ministry of Security Services arrested Chinese defector Hua Di in January 1998. It was reported that Hua Di was sentenced to 15 years in prison for passing missile secrets to America. According to the New York Times "News" service, the Beijing High People's Court has decided to over-turn Hua Di's conviction. ……… In December 1997, I tried to contact Chinese missile expert Hua Di at Stanford University in California. In 1996, he had given Aviation Week and Space Technology detailed information on the Chinese Dong Feng-15 missile, the weapon China used during the 1996 Taiwan crisis. Hua had published nothing really new about the DF-15 but I wanted his personal comments as the "official source." Curiously, Hua Di would not grant an interview. In fact, immediately after my call, Hua Di suddenly decided to return to China……."

World Net Daily 4/5/00 Charles Smith "….Hua Di came from a family of prominent Communist officials. He studied missiles in Russia and worked in China's missile program for 24 years. In 1984, Hua went to work for the China International Trust and Investment Co. (CITIC) a firm part-owned by the Chinese army. Hua joined the Stanford University study center after he fled China during the Tiananmen Square crackdown in June 1989. In late 1997, Hua Di flew to Hong Kong where he met with Chinese security officials and was assured that he would not be prosecuted. On Dec. 31, 1997, Hua returned to China. Later in 1998, the official Chinese press announced that Hua had been arrested and charged with passing state secrets to U.S. officials. …….."

World Net Daily 4/5/00 Charles Smith "…. In the process of looking for Mr. Hua, I also discovered Dr. John W. Lewis, a Stanford professor who collaborated with Hua in writing books on Chinese missiles. Lewis has since provided congressional testimony on missile systems…….. Hua Di's real role inside America, however, remains unpublished. In 1994, Dr. Lewis of Stanford and Hua Di were in business with the Chinese army. Hua Di and Dr. Lewis joined with Chinese Gen. Nie Li, wife of Chinese warlord Gen. Ding Henggao, entering into a joint venture called Galaxy New Technology. ……… In 1994, Dr. Lewis was officially listed on the U.S. Defense Department payroll as Defense Secretary William Perry's personal "consultant." Dr. Lewis traveled to Beijing with Secretary Perry to meet with Ding and his subordinate, Gen. Huai Guomo, as a consultant to Secretary Perry. At the same time, Dr. Lewis also worked for Ding's wife, Nie, in the Galaxy New Technology joint venture. ………. Hua never answered how much he was paid for his "advice" from the joint venture set up by Dr. Lewis and Madam Gen. Nie. Hua left America before congressional and law enforcement investigators could question him about his role in the fiber-optic deal. ….. But the Hua Di story does not end inside the Clinton administration. In 1999, George W. Bush selected Condoleezza Rice as his foreign policy advisor. Ms. Rice was deeply involved with Hua Di and Dr. Lewis. ….."

World Net Daily 4/5/00 Charles Smith "….In 1996, Ms. Rice, as provost at Stanford University, investigated Dr. John Lewis and the Hua Mei project. "We'll follow what is a normal process under these circumstances. It's not all that unusual that issues arise concerning conflict of interest," said Ms. Rice at the time. Yet, nothing ever became of the Stanford investigation. Ms. Rice has made no comment on the investigation. Today, Stanford officials and Ms. Rice continue to maintain the fiction that Hua Di was not a spy and nothing happened. Dr. Lewis, Dr. Perry and Ms. Rice have all refused repeated requests for an interview. ........., Hua Di also served his masters in Beijing by passing false information to the west. In 1992, Hua Di claimed the new Dong Feng-25 missile (Dong Feng, as it happens, translates as "East Wind") was too expensive to be deployed. Hua documented that the DF-25 is a mobile two-stage missile capable of hurling a conventional 4,000-pound warhead over 1,000 miles. However, Hua also documented its failure. According to the co-author of "Red Dragon Rising," William Triplett, in August 1999 Clinton administration officials were shocked by Chinese communist press announcements declaring the DF-25 to be fully operational and tipped with multiple nuclear warheads. Triplett's book has put the White House on the defensive, trying to explain their acceptance of the Chinese defector and his DF-25 disinformation. ……"

San Jose Mercury News 4/18/00 ".......Attorneys for jailed scientist Wen Ho Lee have asked a judge to ban the government's most crucial evidence against him. When FBI agents searched Lee's home near Los Alamos National Laboratory on April 10, 1999, they discovered a notebook in which Lee detailed the computer procedures he had used to download sensitive computer files to portable data tapes. Seven of the tapes are missing, containing computer codes used to design nuclear weapons. Lee has maintained his innocence. He has not been charged with espionage but with taking the secret computer codes. ......"

Antiwar.com 4/19/00 George Szamuely "........ The Times reporters will have us believe that they conducted a painstakingly thorough research of the matter and reached the same conclusion as the Clinton Administration: The bombing of the Chinese Embassy was not a deliberate act. "None of the people interviewed at the Pentagon, CIA, the State Department and the military mapping agency, or at NATO offices in Brussels, Mons, Vicenza, Italy and Paris said they had ever seen any document discussing targeting of the embassy, nor any approval given to do so. No one asserted that he or she knew that such an order had been given. The bombing resulted from error piled upon incompetence piled upon bad judgment in a variety of places........ A week ago the Times had informed us that "Armed with only an address, 2 Bulevar Umetnosti, the officer who was dismissed used an unclassified military map to try to pinpoint the building's location, based on a limited knowledge of addresses on a parallel street. The officer, who wrongly assumed Belgrade's street addresses were numbered as uniformly as, say, Manhattan's, ended up targeting the Chinese Embassy, which is on a frontage road nearly 1,000 feet from the supply directorate that was the intended target." So not only does "mid-level" not know how to look at a map, he tends to assume that cities around the world are all like Manhattan! He "locates" the building and his colleagues happily sign off on it........ Clearly, the Administration decided that the CIA would have to take the rap for the bombing. It's a convenient target since it was peripheral to the Kosovo project and its activities are usually shrouded in mystery. Obviously, the Agency would not have gone along with this legedermein had it not been thrown a bone. "When Mr. Tenet dismissed the officer blamed for targeting and disciplined six others," writes the Times, "he singled out another for praise. That officer, also not identified, raised questions about the target. In the days before the bombing, he called analysts at NIMA and at the NATO headquarters in Naples to express doubts." So the CIA is pretty damn effective after all. "Mid-level" was just a bad apple. ........"

Knight Ridder/Tribune News Service, 4/25/00 Michael Dorgan "……Yang Zhen, one of tens of thousands of Chinese who are hoping to win admission to a U.S. university this spring, insists that he'll return home after he graduates. "I am the only child in my family," said the earnest 25-year-old, who hopes to study business administration or international relations. If Yang does return to China, he'll be one of a tiny minority. China sends more students to the United States than any other country _ more than 50,000 last year. And although all of them assure State Department visa officers here that they'll go home after they finish school, as many as 99 percent look for jobs in America instead. Some qualify for special visas for high-tech fields. Some marry Americans. Some simply disappear. "Once they're in the U.S., they're pretty much free to do what they want to do," concedes Charles Bennett, the chief of visa services at the U.S. Embassy in Beijing....... The impact of China's massive and unofficial immigration on the United States depends on one's point of view. For high-tech companies, it's a boon. For colleges and universities, it's a source of world-class scholars. For other applicants, particularly to top graduate science programs, it means tougher competition.For China, the defection of top scholars to U.S. schools and employers is a worrisome brain drain……."

AP 4/27/00 "…..The government has restored the security clearance of a nuclear scientist so he can assist his defense against charges he mishandled secrets at Los Alamos National Laboratory, his lawyer said Thursday. ……. Wen Ho Lee, 60, is also allowed to travel to secure work areas at the lab, which fired him last year, and at the federal courthouse in Albuquerque, said lawyer John Cline. He is transported in the custody of federal marshals, who keep him in leg restraints. ……"

times of india 4/27/00 "…..A high-ranking Russian security official praised British and Israeli spies on Wednesday, saying they ranked with Russian agents as the best in the world. Sergei Ivanov, head of the Security Council which advises President-elect Vladimir Putin, also said spies from the United States had too much money and were spoilt. "Ours, British and Israeli," Ivanov, a former worker for the KGB Soviet security police, told the Argumenti i Fakti weekly newspaper when asked which country had the best agents. "British counter-intelligence has an excellent school and traditions, they prepare their agents very well," he said. He said Israeli agents could get help from Jews the world over, who would not hand the agent over if approached. "The Americans have too much money. This leads to an impression that everything in the world can be bought and you don't have to use your head," he said. ….."

AP 5/3/00 "……Backed by a new congressional report, the House Armed Services Committee chairman today said that joint research with Russian biological scientists poses serious risks for the United States. Rep. Floyd Spence, R-S.C., released a General Accounting Office report that said a collaborative program with Russian scientists formerly involved in weapons programs may ``exacerbate or create risks'' in the field it is aimed at safeguarding. ……. The cooperation, funded in part by the Pentagon's program to reduce the threat of nuclear weapons from former Soviet states, provides work for Russian scientists so they will not share their scientific knowledge and biological weapons expertise with potentially troublesome states. However, the report by the GAO, Congress' investigative arm, said the program could help sustain Russia's existing biological weapons program by ``maintaining or advancing Russian scientists' skills to develop offensive biological weapons.'' ……"

AP 5/3/00 David Briscoe "……Spending $240 million to steer Russian biological weapons experts into peacetime research may bolster the work of still-secretive former Soviet military institutes, a congressional report said Wednesday. The Clinton administration said any risk is far outweighed by the program's benefits, with U.S.-supported scientists of at least 15 Russian institutes rejecting approaches from other nations to conduct ``questionable research.'' ……… The administration, in responding to the report, said there is no evidence that Moscow is developing germ warfare weapons and danger of U.S.-assisted Russian scientists helping terrorists or rogue nations is minimal. It acknowledged some risks but said they have been reduced to an acceptable level and ``the benefits far outweigh the remaining risks.'' ….."

New York Times 4/30/00 William Broad "….. In 1996, a truck carrying nuclear warheads skidded off an icy road in Nebraska and crashed. For half a day, no one in government, including the president and his cabinet, knew the degree of danger, or if any nuclear material had escaped into the environment, because radiation monitors on the government's fleet of weapons trucks had been removed after complaints from drivers. The drivers had said the monitors showed that they were facing potential health risks from their cargoes. ……… These accusations have been made by Robert Alvarez, who from 1993 to 1999 was a policy adviser in the Department of Energy, which runs the nation's nuclear complex. Before that, as a Senate aide, he specialized in helping oversee the department. ……In an article for a journal, Mr. Alvarez calls problems with the atomic fleet "emblematic of the department's inept and often arrogant management culture." The mind-set has become so backward, he says, that the complex is now basically a ticking time bomb waiting to go off in a serious accident or an inadvertent nuclear blast. ……"

Daily Republican 4/26/00 Amy Williams "…. Security lapses tolerated for more than six years by Secretary of State Madeleine K. Albright have culminated in the mysterious disappearance more than two months ago of a laptop computer and highly sensitive files, including intelligence sources and methods related to weapons proliferation, senior diplomats said. The Clinton administration and Ms. Albright, however are pointing the finger at the Bureau of Intelligence and Research to shoulder the blame. In the meantime, overall security at State has been reassigned to the Bureau of Diplomatic Security. ……. Disclosure of a missing laptop comes late, more than four months after officials discovered an eavesdropping device planed in a State Department conference room. Making matters worse, last year a man in a tweed sport coat reportedly walked into Albright's offices, and helped himself to an armload of Classified documents, therm walked away right in front of State Department officials and employess who made no effort to stop him. Clinton administration officials told reporters on Monday they had not yet determined whether the missing laptop computer's classification was more than "Top Secret." ……"

Washington Times 4/28/00 Bill Gertz Rowan Scarborough "….The Central Intelligence Agency's role in the errant NATO bombing of the Chinese Embassy in Yugoslavia was especially embarrassing for the spy service. It had put much effort and resources in recent years to providing intelligence support to the military. Shortcomings were highlighted during the 1991 Persian Gulf war when on-time intelligence for war fighters was hard to come by. Since then, the CIA has made supporting the military a top priority. The CIA's accountability review board completed a Belgrade bombing investigation earlier this month. The board blamed seven persons who relied on outdated maps for the bombing. CIA Director George Tenet then fired one person and sent letters of reprimand to the six others……. We have learned from intelligence officials that the highest-ranking CIA official singled out for punishment was Maj. Gen. Roderick J. Isler, the assistant director of intelligence for military support, who was reprimanded. Gen. Isler was the highest-ranking CIA official to approve the bombing proposal before it was sent to the Pentagon and NATO………. Officials said there were several people who signed off on the target after the CIA "nominated" the site in Belgrade as a target, mistakenly thinking it was a Yugoslav military weapons-buying center. Others who approved it included officials at the Pentagon's Joint Staff, NATO headquarters in Europe and the targeting center in Vicenza, Italy. Some officials were particularly upset about the selective punishment because it appeared to be a political bone to Beijing……"

ChinaTimes AFP 4/27/00 "…..A US reconnaissance aircraft was intercepted Thursday by the Chinese air force off eastern China when it was spying on Chinese military movement, it was reported here. The US RC-135 aircraft, from Okinawa, was intercepted at 28,000 feet on the skies of East China Sea, Taiwan's ET Today Internet news quoted an unnamed general here as reporting. "This was the first time in three years the People's Liberation Army (PLA) air force scrambled to intercept an unidentified aircraft out of its airspace," the general was quoted as saying. "The move suggested the some PLA units, very likely ballistic missile units, must be moving on the borders of Zhejiang and Fujian provinces," he said. The defense ministry was not able to confirm the report. ….."

Insight online 4/24/00 Paul M. Rodriguez "……..Former CIA Director John Deutch is in "serious" trouble and is expected to face charges brought by the Justice Department's criminal division, news alert! has learned. This involves far more than what has been reported in the press," said a top federal official who asked not to be further identified. "The review has uncovered some very serious offenses." ……… The issue came to public attention following a secret CIA inspector-general investigation into complaints that internal-security procedures - including reporting violations of CIA procedures - had been bypassed by senior CIA officials when problems associated with Deutch's handling of highly secret materials were brought to their attention. CIA Director George Tenet has denied he tried to cover up for Deutch following the initial internal complaints. The House and Senate Intelligence committees have heard from Tenet and Deutch, among others, as well as the inspector general who referred possible criminal activities to the Justice Department. News alert! sources say that special agents have uncovered "substantial violations" and "contradictory" information by Deutch on the matter and, as a result, a push is under way to file criminal charges against the former CIA chief, who also worked at high-level jobs in the Defense Department. But it is up to Attorney General Janet Reno, they say. ........."

newsmax.com 5/4/00 "…..The secretary has been notoriously slothful in moving to tighten up State Department security urged upon her for years by the Republican-led Congress, the Federal Bureau of Investigation and the Central Intelligence Agency. As reported Thursday and commented upon by ABC News, here are some of the 40 stern recommendations by the interagency panel of experts from the Department of Defense, Secret Service, FBI, CIA and her own Department of State:

• Redo all building passes, de-activate those of former employees and make getting them much tougher. There are 33,000 State Department building passes, and 2,000 per year are lost. Diplomats keep their passes even when stationed overseas, making those passes prime targets for theft or misuse.

• Make guards physically check passes. Currently no one checks to see if magnetic cards that are swiped actually match the person pictured on the card. Restrict access of members of the press.

• Install modern security equipment, such as card and body scanners, and other methods.

• Foreign nationals, such as North Atlantic Treaty Organization members, should be investigated for counterintelligence problems before being given blanket clearance.

• Tighten rules on escorting visitors, contractors and others and run security-background checks on them, including criminal and terrorist databases.

• Make all uniformed guards employees rather than contractors. The turnover rate of the roughly 300 contracted uniformed guards is 45 percent per year.

• Redesign the lobby of the State Department for better security and open a visitor center away from the main building for screening people and all packages coming inside.

• Make every person who gets a classified briefing or signs out classified material enter his name in a database so access can be traced.

• Improve building security by restricting parking around State Department headquarters, randomly inspecting vehicles that enter the area, and have deliveries made at a separate site. ….."

Washington Times 5/5/00 Bill Gertz Rowan Scarborough "…… The People's Liberation Army (PLA) is building its electronic eavesdropping capabilities in western China. Pentagon intelligence analysts say the expansion of listening posts at two sites was photographed in late December and early January by U.S. reconnaissance satellites. The buildup is one of the more clandestine aspects of China's steadily increasing military power. …… According to a Defense Intelligence Agency report, cameras aboard a National Reconnaissance Office satellite photographed the addition of several new parabolic dish antennas. They were added to the large antenna field at the Dingyuanchen listening post aimed at the Russian border….."

AP 5/6/00 Tom Raum "…… Inquiries into lax computer practices by former CIA Director John Deutch could result in reprimands or stronger action against a widening number of present and former senior CIA officials, intelligence officials said Saturday. In addition to a new Justice Department criminal investigation into the 1996 security breach, the officials said, a presidential advisory panel criticized Deutch's successor, George Tenet, and other agency officials last week for inordinate delays before they acted against Deutch. …….. Once focused primarily on Deutch, inquiries by the Justice Department, Congress and the CIA itself now are seeking to determine why the matter was not pursued more aggressively within the CIA, said administration and congressional officials who spoke on the condition of anonymity. ……."

Patrick Henry News 5/8/00 Gary Aldrich "……. To have the ability to predict the future, but not be able to act when serious damage to one's country is so obvious a potential, truly can be a curse: …………

…….Unlimited Access, page 38: "In the Clinton Administration, we had a major problem with Interns walking off with Laptop computers." Page 36: "Federal employees were trying to find more than $150,000 worth of equipment lost or stolen from the (Clinton) inauguration..."
Washington Post headline May 5, 2000: "State Dept. Missing 2 More Laptop Computers; Top Aide Involved." …….

…….Insight Magazine article dated May 8, 2000: "FBI Probes Espionage at Clinton White House." The article details an investigation that was begun in late 1996 or early 1997 when the FBI received a tip from the CIA that a local telephone manager was acting suspicious. Before too much time had gone by, the FBI " discovered enough information to make it believe that, somehow, the highest levels of the State Department were compromised, as well as the White House and the National Security Counsel."
The FBI did not have to wait for a tip from the CIA! One of their own agents, working inside the Clinton White House had warned them of a most serious security breach. The warning came in plain English, easy to understand: "....the new phone system was a security nightmare. The old system was self-contained, manned twenty-four hours every day. The new system was computerized and, therefore, not self-contained." Page 47, Unlimited Access.

Patrick Henry News 5/8/00 Gary Aldrich "……. Many more details of the new, seriously flawed telephone system appeared in the manuscript of my book, submitted to FBI Headquarters for their review in the winter of 1995! The FBI forced me to redact important information that detailed the White House Telephone System national security weaknesses, citing concerns for national security. Apparently, their only concern was about the relationship between the FBI and a flawed, corrupted Clinton White House, because the FBI waited until the CIA discovered actual evidence of espionage before they conducted any investigation. ……."

 

 

 

 

Associated Press Online 5/11/00 George Gedda "……An FBI official told a House hearing Thursday that foreign spies have unescorted access to the State Department by working undercover as news correspondents. Hours after the disclosure by Timothy D. Bereznay, an FBI section chief, Secretary of State Madeleine Albright ordered an investigation. "Obviously we don't want spies posing as journalists," Albright said, speaking at a joint news conference with French Foreign Minister Hubert Vedrine. Then she said jokingly to the assembled press, "If any of you are (spies), please identify yourselves." …… "

Associated Press 5/11/00 Tom Raum "……..The CIA did not play a role in bringing crack cocaine into the Los Angeles area in the 1980s, the House Intelligence Committee concluded in a report Thursday. The report, the latest in a series by investigatory bodies to exonerate the CIA, said no evidence was found of any conspiracy by CIA agents to bring drugs into the United States. ``Bottom line: the allegations were false,'' said the committee chairman, Rep. Porter Goss, R-Fla. ......"

United Press International 5/11/00 Ashley Baker "……. At least two foreign intelligence officers acting as media correspondents are currently working in the State Department's second floor pressroom, enabling them to wander throughout the building, a Federal Bureau of Investigations official said Thursday. At a joint press conference with French Foreign Minister Hubert Vedrine on Thursday, Albright joked about Bereznay's remarks. ………. According to the official, Section Chief Timothy Bereznay, the FBI has been aware of the situation for some time. ……… "The FBI does not customarily provide other agencies, to include the State Department, with lists of intelligence officer identities, to protect both sensitive cases and sources, unless there is a specific reason or if asked," Bereznay told members of the House International Relations Committee. ……."If asked, the FBI would be willing to identify to the State Department permanent media badge holders identified as hostile intelligence officers so that their access could be restricted or their visits monitored." ……"

United Press International 5/11/00 Ashley Baker "……. According to the Department, a total of 467 press passes have been issued to journalists, 56 of them to foreign news organizations. Although the passholders are allowed to visit the first and second floors of the building, there are no barriers to stop them if they wanted to access any other floor. ……… According to a recent report from the State Department's Inspector General, over 53 cases in which Department employees were suspected of mishandling classified information were referred to the FBI between 1995 and 1998. None, however, were prosecuted. ……. "FBI officials stated that in some instances department employees admitted, when interviewed by FBI agents, the inappropriate and deliberate release of classified information to unauthorized individuals," states the report…."

United Press International 5/11/00 Ashley Baker "……. In 1998, the report further states, there were nearly 1,700 "incidents" where State Department employees mishandled classified documents. Although 218 were disciplined for committing at least four offenses, none were fired. "Administrative actions taken to discipline employees are ineffective to ensure that poor security practices are corrected," the report said. …… The report also details the loss of nearly 240 highly-classified documents by State Department officials. Most of the losses, according to the report, were the result of loose controls over who looked at the documents. …."

Insight Magazine 5/10/00 "…….Now that the FBI has confirmed the outline of an Insight exclusive - that its famed Division 5 counterintelligence group was probing suspected eavesdropping by Israeli agents on top-level U.S. government telecommunications traffic - why hasn't the rest of the press followed? …… Especially since the FBI also has confirmed that this is still an open investigation - even though, according to an Associated Press story, insufficient details had been confirmed to support the allegation. So what has the FBI been probing for nearly 3 years? ……. "This should be front-page news," exclaimed a high-level U.S. government source familiar with the details of Insight's exclusive report (http://www.insightmag.com). "This is one of the most important intelligence stories to come along in years and nobody is paying any attention to it!"…... Variations of "I can't talk to you about" or "It's too sensitive" or "It's still an open investigation" ring hollow if, as the FBI has told other news outlets, it couldn't confirm the allegation (actually allegations) but still is suspicious. And consider why that is so:

* Few people in U.S. government even knew the counterintelligence operation existed.
* Fewer still knew any details.
* The story involves Israel, always a radioactive subject, especially on intelligence matters.
* The FBI artfully downplayed the story by denying that hard proof had yet been found to support an allegation (which one remains a mystery though and reminds one of Al Gore's infamous "no controlling legal authority").
* The FBI is embarrassed on two fronts: 1) its probe was exposed, and 2) its exposure also revealed that the hunted were, allegedly, capable of tracking the hunters………

…… "It's as if they wanted the story to come out so they could vent frustrations about not being able to break the case," suggested a senior government official. …….…."

Insight Magazine 5/10/00 "…….Top FBI officials declined to comment on the impending story, even to urge the magazine's editors to pull it for national-security reasons and/or to provide guidance on any aspect of it - such as to note, as has been claimed anonymously, that the probe found no hard facts and thus was moved to an inactive status pending further developments. …….News organizations respond on a case-by-case basis, but generally they work with government officials to help get facts straight and give. Insight and most other media do not allow censorship or government involvement in shaping a story but do consider arguments and counter-arguments prior to publication concerning matters that might be incorporated in investigative reports. Exculpation, so to speak. ……..But the FBI did not respond normally. In fact, while some of its own large and extended family in intelligence circles confirmed large portions of Insight's story in the weeks before publication, none in the Bureau's press office ever offered a public statement. Why? ...... Nor did the FBI's top brass bother to inform the top leadership of Congress prior to publication of the Insight story - knowing that questions would be asked, if only privately, after the story was released. ……."

Insight Magazine 5/10/00 "……."This is the first I've heard of it," NSC spokesman Dave Stockwell told Insight. "That doesn't mean it doesn't exist or that someone else doesn't know." ……..White House spokesman Joe Lockhart and his group also professed ignorance of the allegations reported by Insight, which further suggests that they, too, were not given a heads-up. Which brings us back to the FBI: Why would it fail to respond to Insight after so many calls and conversations unless it wanted the story released as is? And for what purpose? ……… While Insight prides itself on having sources and contacts others don't, this doesn't mean that other venerable institutions such as the New York Times and the Washington Post don't have good sources and contacts. In fact, several reporters at those papers, as well as ABC News and Fox News Network, have been pursuing the Insight exclusive and have been told much the same story that was published by this magazine. Yet apart from Fox News, these outlets have run not a word other than the initial wire or staff stories repeating bland comments by the FBI. ………

Insight Magazine 5/10/00 "…….Insight has been told that prior to publication of the main story, senior government officials only had been briefed on the serious allegations and FBI frustrations about not being able to nail down the specifics. "We were unaware as far as I know that the case had been moved to an inactive status," a senior U.S. government official familiar with such briefings told Insight. This raises interesting questions, such as: Since when is it not news that the FBI has an "open" counterintelligence investigation involving suspected Israeli spying at the White House and other secure government facilities? Since when is it not news that the FBI has confirmed it conducted just such an investigation, and that its agents were unable to prove or disprove allegations of such a serious nature that they prompted the probe in the first place? And what were the underlying issues that continued to feed a nearly three-year probe? Something must have been pretty solid for such a clandestine operation over so long a period….."

Insight Magazine 5/10/00 "…….Consider the Wen Ho Lee case: Never has so much reporting been done with so few facts and so much speculation. That's news - but an even larger counterintelligence operation by the FBI into suspected spying on the State Department and the White House isn't? ……..Maybe there's something the FBI wants the world to know without saying it directly. Congressional leaders now getting back to Capitol Hill and hearing about the Insight story are beginning to ask questions…… There are lots of stories lately about security at the State Department. Maybe there ought to be some inquiries about security at the FBI. ……… "

NewsMax.com 5/15/00 Christopher Ruddy "……Russia's highest ranking defector says State Department claims that no foreign or American journalists are engaged in espionage is absolute nonsense. Col. Stanislav Lunev reveals that many journalists from Russia and other countries are, in reality, spies. He also says that many Russian journalists have recruited leading American reporters to engage in espionage as well. Col. Lunev was the highest ranking spy ever to defect from the GRU - Russia's military intelligence unit. He did so while living and working in Washington as a TASS correspondent. ……. His story was deemed so vital by the CIA and FBI he remains under the Witness Protection Program. He currently writes a column for NewsMax.com. When Lunev defected to U.S. intelligence he revealed that at least half of all Russian journalists working in Washington and the U.S. were either GRU or KGB officers. Questions about journalists posing as spies have erupted after security concerns were raised at the State Dept. headquarters in Washington. ...... Listening devices have been found at the State Dept. This winter a lap top computer which held classified information on nuclear, biological and chemical weapons - was stolen. ….."

AFP 5/13/00 "…….The US State Department said Friday it had no knowledge of any foreign journalist accredited to its headquarters engaging in espionage as the FBI backed down from an accusation by one of its agents that some correspondents were "hostile intelligence officers." "I do have to say that at this time we are not aware of any information that any members of the foreign press are utilizing the media as cover for intelligence activities at the State Department," spokesman Richard Boucher said. ……… He took aim at the department's policy that exempts reporters from regulations requiring all foreign nationals in the building to be escorted at all times. "This exception affords unescorted access to the State Department by a number of known foreign service intelligence officers," Bereznay told the House International Relations Committee. ......, His comments provoked an uproar as Secretary of State Madeleine Albright, who has been stung by criticism over a series of grave security lapses in the past months, and others said they was unaware of reporter-spies in the building but would look into the reports. But in a statement released after Bereznay's testimony, the FBI backed away from his allegation, offering a vague clarification that said the official had been referring to the "historical use" by hostile spy organizations of "the media as cover for intelligence activities in the United States." ......"

WorldNetDaily 5/13/00 Anthony C. LoBaido "……When Thailand's Laurie Holden Hacking Group -- modeled after international hacking superstars The Hong Kong Blondes -- recently met at a tropical paradise in southern Thailand for a cyber summit, the agenda focused on new technologies that are a page out of Star Trek. ......... While the sun beamed down on their sunburned necks, bringing the steaming jungle of palm trees and pristine sandy beaches to life, the sunlight also provided the evidence and modus operandus of the new technology -- light itself. Light is made up of photons -- and it is photons that are now, literally, important to this new method of encryption. The group's members call this new development a "revolution in cryptography" -- a revolution, they claim, that threatens the balance of power between anti-globalization hackers and the well-financed governments, armies and multinational corporations that wield power on the international scene. ………. "Get ready for a new beast," says Mini Jet, one of the group's top lieutenants. "Quantum key distribution is a breakthrough in encryption technology that will change the face of the Internet, spying, telecommunications and hacking -- perhaps forever." ……. "Moreover, it will severely curtail or perhaps shut down the great gains made by hackers the world over in their protest of the one-world economic system -- controlled by impersonal giant corporations who have no concern for the average person living on this planet." ……."

Independent Institute 5/21/00 Dave Kopel "……The Reno Department of Justice is very good at being sneaky. The DOJ's lobbyists are on the verge of successfully sneaking into law a provision which will authorize federal agents to stealthily enter people's homes, search the homes, and not tell anyone. ……The Secret Searches measure is so outrageous that it would have no chance of being enacted as a bill on its own, when subjected to public scrutiny and debate. So instead, the DOJ has nestled the Secret Search item deep inside a long bill dealing with methamphetimines. The measure is further disguised with the innocuous title of "Notice Clarification." ……..Subject to virtually no public discussion, the Secret Searches item has already passed the Senate, hidden inside the methamphetimine giant S. 486. Next week, the House Judiciary Committee will take up H.R. 2987, the House version of the Senate bill, which also contains the buried clause on Secret Searches (section 301). The federal bankruptcy reform bill (which has passed both houses, and is currently in a conference committee) likewise has the hidden Secret Searches language……"

Excite News Via Drudge 5/25/00 Reuters "…..The Central Intelligence Agency said Thursday it had reprimanded six former and current senior officials for their role in the investigation of former CIA Director John Deutch accused of mishandling classified information. CIA Deputy Director Gen. John Gordon formally reprimanded in writing three officials, "admonished" in writing two others, and "orally admonished" one current official, the spy agency said in a statement. The CIA had investigated Deutch after discovering highly classified material on his home computers that were also used to connect to the Internet, raising the possibility that an outside hacker could have accessed the information. There has been no evidence that that occurred. ….."

Insight Magazine 6/19/00 J Michael Waller "…… Blackmail has a variety of targets in Washington. Secret personnel information has been misused, often illegally, to blackmail career officials within the federal bureaucracy to toe the administration line on a range of defense, foreign-policy, national-security and law-enforcement issues, sources say. "They will pull such things as your financial-disclosure forms and find a variety of ways of putting pressure on you," a longtime intelligence officer at a large security agency tells Insight. "They have a number of leverage points that they can use against people in the structure that constitutes blackmail. …….. "People get the message on that, and they behave accordingly," the security-agency source says. "You're dealing with human nature. People have jobs and families, and when they get into a position of GS-15 or SES [senior civil service and senior executive service pay grades] and colonel or general or admiral, their kids are in college, right? They're vulnerable. There are a lot of leverage points on people. From my experience in the bureaucracy, I have never seen, never ever seen, it this bad." …… "

senate.gov 5/23/00 U.S. Sen. James M. Inhofe "……U.S. Sen. James M. Inhofe (R-Okla.) said today that serious concerns over national security argue decisively against granting Permanent Normal Trade Relations (PNTR) status to China at this time. He said Congress should vote "no" on PNTR for China until its dictatorial regime changes behaviors which threaten U.S. security and trample American values. "National security must take precedence over trade," Inhofe said. "Granting permanent trade favors to China in the face of its openly threatening actions of recent years is folly. "We cannot allow the pursuit of dollars to blind us to certain realities about the ruling communist regime in China, including: ……its repeated threats against the United States and Taiwan; its massive military modernization and buildup; its proliferation of dangerous weapons to rogue states; its theft of U.S. nuclear secrets; its demonstrated strategy to exploit commercial relationships to acquire advanced military technology; its attempts to corrupt the U.S. political system; its violation of international agreements; and its brutal repression of dissidents. "To ignore these actions in the belief they can be separated from what we do in our trading relationship is dangerously misguided. …..China's trade surpluses are helping to finance the regime's military buildup and aggressive foreign policy, while strengthening its hold on economic and political power. ……."Similarly, to suggest that increased trade is by itself going reverse China's negative behavior is belied by recent history. ……"

US Defense 5/22/00 "…..A former U.S. foreign service officer said that top Chinese officials were able to pore over secret U.S. documents relating to North Korea during the nuclear crisis with Pyongyang in 1994 because they were left out on desks. The documents, according to a report on Monday in WorldNetDaily, included "stacks" of top secret papers about nuclear materials and policy, said the official, who requested anonymity and who worked the Korea desk at that time. "Security under the Clinton administration was incredibly sloppy," the official told the online newspaper over the weekend. ……… The paper said the security lapses were the result of policy changes from the Bush administration, which gave foreign officers and diplomats unescorted access throughout the State Department's main building, according to the former diplomat. …….Military documents listed as "secret" and "top secret" -- both classifications indicating that such information was extremely vital to U.S. national security -- were "just thrown around like some kind of casual operation," said the desk officer, who once worked in Defense Department intelligence. The documents being viewed by foreign officers "included nuclear papers, because the crisis we were dealing with at that time had to do with North Korea developing nuclear weapons," the ex-official said. ……"

insight Magazine 5/18/00 J Michael Waller "……There is a tendency in and out of government to minimize the impact of Israeli espionage against the United States because Israel is a friendly country. That overlooks the gravity of the espionage threat, says David Major, former director of counterintelligence programs at the National Security Council. "This 'don't worry about allied spying, it's okay' attitude is harmful," he warns. ….."

National Review 5/18/00 Dave kopel "…… The Reno Department of Justice is very good at being sneaky. The DOJ's lobbyists are on the verge of successfully sneaking into law a provision which will authorize federal agents to stealthily enter people's homes, search the homes, and not tell anyone. …….. Subject to virtually no public discussion, the Secret Searches item has already passed the Senate, hidden inside the methamphetimine giant S. 486. Next week, the House Judiciary Committee will take up H.R. 2987, the House version of the Senate bill, which also contains the buried clause on Secret Searches (section 301). The federal bankruptcy reform bill (which has passed both houses, and is currently in a conference committee) likewise has the hidden Secret Searches language. If the Secret Searches provision became law, it would apply to all searches conducted by the federal government, not just searches involving methamphetimines or bankruptcy. ……… When conducting searches, federal agents are currently required to announce their presence before entering, and to provide an inventory of any items they take. Because the person whose home or business is being searched knows about the search, he can exercise his Fourth Amendment rights, and make sure that the police have a properly-issued search warrant. He can also see if the search is being conducted according to the warrant's terms - i.e., the police are searching only for items authorized by the warrant, they are searching the right address, etc. …….But under a Secret Searches law, federal police could enter a person's home surreptitiously, conduct a search, and not tell the homeowner until months later. ……."

The Associated Press 5/19/00 John Solomon "……A highly classified Justice Department report concludes that the FBI failed to provide enough resources and supervision to the Wen Ho Lee spy case and focused so narrowly on the Los Alamos scientist that it may have missed other national security breaches, officials say. ……… The Bellows report, according to officials who have seen it, concludes that the department should have approved the warrant requested several times by the FBI. ......But it adds that the FBI did not provide all the information it possessed that might help the department make the decision, the officials told The Associated Press, speaking only on condition of anonymity. …….. The officials added that the report concludes FBI agents spent so much time fighting for the surveillance warrant that they missed the opportunity to more quickly search Lee's work computer, where they say they belatedly found evidence he downloaded prized nuclear secrets from secure lab computers. Bellows concludes the FBI did not need the warrant to conduct the search because Lee had no reasonable expectation of privacy on a government computer, the officials said. ……..The lengthy focus on Lee also kept the bureau from considering other possible China espionage suspects and other possible leaks of national security secrets, the report added. ……"

cnn.com 5/18/00 David Ensor Reuters "……The Clinton administration is "placing undue risks" on the U.S. armed forces and on national security by failing to address intelligence weaknesses, according to a report from the House intelligence committee. The report blamed inadequate resources and funding for intelligence failures such as:

• The lack of warning when India conducted nuclear tests.
• The inability to monitor facilities suspected of producing chemical, biological and nuclear weapons.
• The bombing of the Chinese Embassy in Belgrade during the NATO air war.
…..The Republican chairman of the House committee blamed the intelligence shortcomings on the White House. "There is a leadership problem at the highest levels of the Clinton-Gore administration about focusing on the need for intelligence, making the commitment and the hard choices to put the dollars there," said Rep. Porter Goss, R-Florida. ….."

Miami Herald 5/18/00 David Kidwell "……FBI surveillance teams conducted as many as 200 missions in Miami since 1997 trying to catch two Cuban Interests Section officials they suspected were spies, an FBI specialist testified Wednesday at the espionage trial of former U.S. immigration supervisor Mariano Faget. Neither of the Cuban officials -- Luis Molina and his successor at the Cuban Interests Section in Washington, Jose Imperatore -- has ever been charged. Both have since returned to Cuba -- ..."

MSNBC 5/16/00 Mike Brunker "…… In a case with broad implications for communications technology, lawyers for the Justice Department and a coalition of telecommunications and privacy groups square off in federal court Wednesday to argue whether the FBI should be allowed to intercept Internet communications and pinpoint the locations of cellular phone users without first obtaining a search warrant. ……The Justice Department official acknowledged that under some circumstances, agents would be given material they were not legally entitled to. But he said the problem occurs not because law enforcement wants to avoid the legal requirements for such "electronic intercepts" but because telecommunications companies have said they are unable to separate the content of such packets from the destination information. …….. In such a case, the official said, the information could not be used in any civil or criminal proceeding. Other groups that will argue against the FCC rules are the Cellular Telecommunications Industry Association, the U.S. Telecom Association, the Electronic Privacy Information Center, the Electronic Frontier Foundation and the American Civil Liberties Union. Privacy advocates have expressed concern over the increasing use of eavesdropping by federal authorities, which has jumped 33 percent since President Bill Clinton took office in 1993. A report earlier this month by the Administrative Office of the U.S. Courts showed that 53 percent of the 1,277 wiretaps authorized last year were electronic intercepts, which are used to tap wireless phones, pagers and e-mail. That was a 17 percent increase from 1998. …….."

WorldNetDaily 5/17/00 Col. David Hackworth "…..The Cold War isn't over; it's at halftime. We'll face the Russian Bear again, along with a host of others hankering to thump America around the head and shoulders with something meaner than a club. Try China, India and Iran for openers -- or the elusive Osama bin Laden and his deadly terrorist gang. Bet on it. Within a decade, we'll be in a serious hot or cold brew with one or all of the above. When it comes to national security, the first line of defense is to keep careful tabs on our enemies and not let them know anything about what we've got going down. Of all the elements of war, intelligence is the key factor. ………

WorldNetDaily 5/17/00 Col. David Hackworth "…..Today, America's security isn't tight and right. It's blowing in the wind like confetti. It's so bad that I doubt we have many secrets left. During last year's war with Serbia, for example, the Serb high command knew NATO's -- read the U.S.A.'s -- flight plans and targets before our aircrews did. Our flyers were placed in body-bag danger, and we were the ones without a clue. …….President Clinton's Washington has become answered prayers for spies. There are more hostile spooks inside the beltway today than cherry trees. And because of laxness, slackness and carelessness on the part of the hired help, the real-life 007s don't have to work very hard at stealing our secrets. ……

WorldNetDaily 5/17/00 Col. David Hackworth "…..Foreign spies have infiltrated every national-security area -- including the White House. But the State Department especially has become a spy heaven. ……. Since 1993, there've been about four security breaches a day. In 1998 alone, there were almost 1,700 security violations. Spies have walked into the place, helped themselves to classified documents and slipped out. They've bugged a conference room, then stood outside and taped highly classified meetings. Laptop computers have gone south with top-secret information, and classified documents have been plucked off desks by spies who roam through the place posing as accredited State Department reporters. ….."

WorldNetDaily 5/17/00 Col. David Hackworth "…..Neither is the CIA without sin. Former director John Deutch's computer -- crammed full of national secrets -- was compromised. And then there's Aldrich H. Ames, who out-and-out vacuumed the CIA files and sold the stuff to the Soviets by the crate, causing a lot of undercover agents' deaths and compromising scores of covert operations. Now the FBI suspects the White House switchboard's bugged. Imagine the national security matters discussed on the supposedly secure line from the Oval Office to places like the Pentagon, State, the CIA and FBI. …….Since 1993, matters of security have been looked upon by Clinton and Gang as boooring. Even back then, many of the Clinton Kids without security clearances handled top-secret documents as if they were last week's pizza. Congressman Porter Goss, a former CIA agent, says the problem is "arrogance and disdain for security." ……One day soon there'll be a terrible price to be paid for this almost eight-year indifference to basic security matters. Will our children and grandchild pay dues because we looked the other way while the markets were high and our wallets full?….."

Miami Herald 5/16/00 David Kidwell "…….the U.S. immigration official charged with passing a government secret to a friend with alleged ties to the Cuban government -- might not have been charged if he had agreed to turn on other suspected spies, an FBI agent testified Monday at a federal hearing. Jury selection is set to begin today in Faget's espionage trial, although he is not accused of being a Cuban spy. He acknowledges he leaked classified information to a lifelong friend who authorities say might ''possibly'' have been a spy. No one else has been charged in the case. ……… Two FBI agents and their bosses tried during six hours of questioning the day Faget was arrested in February to get Faget to come clean and cooperate, ''but Mr. Faget had consistently given us inconsistent information and lies,'' FBI Agent James Patrick Laflin testified Monday. ……"

Associated Press 5/16/00 Rachel La Corte "……Jury selection began today in the case of an Immigration and Naturalization Service official accused of spying for Cuba, with a majority of the first prospects to be questioned saying they knew something about the case. Jury selection for the trial of Mariano Faget may prove to be a challenge in a county populated by 800,000 Cuban-Americans, many of whom have strong opinions against any involvement with Cuba while Fidel Castro is in power. More than half of the pool of 67 prospective jurors said they had heard of some aspect of the case. Faget, a Cuban-born U.S. citizen, started working for the INS as a clerk in 1970 and rose to become acting district deputy director in Miami. Federal investigators have charged him with violating the Espionage Act, saying he revealed classified information to a friend during a sting and lied about his contacts with Cuban officials. He admits he made errors in judgment, but denies that he ever spied. If convicted, he could face a 10-year prison term……"

The Kansas City Star 5/9/00 "…….Yet doubts about the CIA's story remain, and not just in China. Last week U.S. Sen Pat Roberts of Kansas, for one, said he still had questions about what really happened. Roberts said he didn't know whether the bombing was actually a real mistake or a "deliberate mistake." This is particularly significant because Roberts is a member of the Senate Intelligence Committee. He noted that the Chinese embassy was the only bombing target that had been recommended by the CIA during the NATO campaign and that the agency stood by the recommendation even after it was questioned by the military. ......,Roberts said he favored continued review of the bombing by the Senate Intelligence Committee. This sounds like a good idea. ……."

New York Times 5/11/00 Christopher Marquis "…..he State Department suffers from a systemic failure to protect secrets that is longstanding and far broader than the recent series of lapses publicly denounced by Secretary of State Madeleine K. Albright, a range of administration officials say. Interviews with State Department officials, intelligence experts and lawmakers monitoring the department's security -- as well as a recent audit by the department's inspector general -- depict an agency where small violations are frequent, few are punished and many employees do not take basic precautions. ……….. Last year, the Federal Bureau of Investigation reported that a suspected spy roamed the halls of the department unattended. Many of the department's office-cleaners and maintenance staff work unsupervised, though most lack security clearances. ………"

AP 5/10/00 Jesse Holland "……The ''Love Bug'' computer virus struck at least 14 federal agencies and even penetrated classified systems, proof the government isn't doing enough to protect its computers from hackers, a House subcommittee was told Wednesday. ''Virtually all of the largest federal agencies have significant computer security weaknesses that place critical federal operations and assets at risk to computer-based attacks,'' said Keith Rhodes, director of computer and information technology assessment at the General Accounting Office. Among agencies the Love Bug virus struck were the Social Security Administration, the Energy Department, the Central Intelligence Agency, the National Aeronautic and Space Administration, the Immigration and Naturalization Service and the Defense Department, Rhodes told the House Science technology subcommittee. ……"

 

Telegraph [UK] 6/10/00 Ben Fenton "…… THE CIA, which less than a decade ago refused security clearance to gay men and lesbians on the grounds that they were potential targets for blackmail, has held its first "gay pride" event. More than 100 lesbians and gay spies were joined by busloads of gay members of the ultra-secret National Security Agency earlier this week to celebrate the relaxation of regulations that has allowed them to admit their sexuality. The meeting, to mark Gay and Lesbian Pride Month at the CIA, was addressed by Barney Frank, the first openly gay member of Congress. ……"

washingtonpost.com 6/9/00 Vernon Loeb "….. Not many years ago, the Central Intelligence Agency automatically denied a security clearance to anyone it suspected was homosexual, on the theory that gay men and lesbians were ripe for blackmail. This week, the CIA held a gay pride celebration at its Langley headquarters, hosting gay Rep. Barney Frank (D-Mass.) at a ceremony intended to underscore how far the agency has come from its homophobic past. "The fact that I would be speaking at Gay and Lesbian Pride Month at the CIA--yeah, that's a sign of real progress," Frank said yesterday, two days after he addressed about 100 gay intelligence workers in the CIA's awards suite and met privately with George J. Tenet, the director of central intelligence. ……."

THE WASHINGTON TIMES 6/13/00 Jerry Seper "……FBI Director Louis J. Freeh was reluctant to give up information to the White House during national security briefings involving suspected illegal 1996 campaign donations by the Chinese government, fearful it might compromise an FBI investigation…….. According to a Nov. 24, 1997, memo, Mr. Freeh told Attorney General Janet Reno that the FBI and the Justice Department had "conflicting duties" in keeping President Clinton informed on national security matters and, at the same time, keeping from the White House "certain national security information" on the FBI's campaign finance probe…….. "Although the appointment of an independent counsel certainly would not eliminate the difficulty in deciding which matters should be brought to the attention of the president, it would lessen the perception problem," he said……."

THE WASHINGTON TIMES 6/13/00 Jerry Seper "……The FBI inquiry focused, in part, on efforts by the People's Republic of China "to gain foreign policy influence by illegally contributing foreign money to U.S. political campaigns and to the [Democratic National Committee] through domestic conduits." The memo said the FBI found "substantial evidence" that huge sums of money was routed to the DNC by foreign sources "as a result of the massive fund-raising effort coordinated by the DNC and the White House." The Federal Election Campaign Act prohibits any person from soliciting, accepting or receiving from a foreign person any "contribution of money or other thing of value . . . in connection with an election to any political office."….. "If the FBI couldn't share national security information with the White House, then something was obviously wrong," said Mark Corallo, spokesman for the House committee. "This is yet another glaring factor that should have compelled the attorney general to appoint an independent counsel."….."

yahoo.com 6/7/00 Reuters "….. The U.S. National Security Agency will turn over to private industry the development and management of most of its non-classified information technology in a single, 10-year contract valued at up to $5 billion to the winning bidder, The Washington Post reported Wednesday. The Post said NSA Director Lt. Gen. Michael Hayden called the initiative ``unprecedented'' at an agency that has historically kept most of its technology development in-house. Hayden told the paper in an interview the contract would free NSA management to focus on retooling critical spy technologies that are increasingly threatened by fiber-optic cable, digital cell phones, encryption and the Internet. ….."

USA Today 6/5/00 Richard Willing "…..The Justice Department last year sought and received permission from a secret federal court to place a record 880 wiretaps in spying and terrorism investigations, department records show. An FBI official says the taps demonstrate increased interest in pursuing foreign agents operating on U.S. soil, including some linked to Mideast terrorist groups. ……..The administration sought 601 federal wiretaps in ordinary criminal investigations in 1999. ''The increase (in spying and terrorist wiretaps) is troubling because of the lack of accountability in the secret process,'' says author and electronic privacy advocate David Banisar. …..The court has approved more than 13,600 wiretap requests in 22 years and has rejected one. ..."

yahoo.com 6/2/00 Reuters "…..Six nominees to be U.S. ambassadors have security violations in their personnel records, and one of them has 22 such violations, a member of the Senate Foreign Relations Committee said. In a letter to Secretary of State Madeleine Albright released on Friday, Minnesota Republican Sen. Rod Grams asked how Albright could reconcile the nominations with her recent statement that diplomats who neglect security are failures. Security at the State Department has become a hot political issue this year after a laptop containing classified codes disappeared from the Bureau of Intelligence and Research. ……..Grams said the six nominees, whom he did not name, had committed a total of 62 security violations between them. ``One nominee has 22 violations and several others have violations in double digits,'' he added. ……"

Defense Information and Electronics Report 6/2/00 Richard Lardner "…. The House Permanent Select Committee on Intelligence says the military's human intelligence capabilities are "acceptable" and continuing to improve, but a number of hurdles must be cleared before the 5-year-old Defense HUMINT Service (DHS) becomes a fully established organization. According to the committee's May 16 fiscal year 2001 intelligence authorization report, the level of support provided by defense HUMINT operators to the warfighting commanders-in-chief remains a key shortcoming that must be repaired. "Human intelligence is highly valued, but HUMINT coverage is nonexistent or in short supply in many areas of the world where the United States may find it necessary to deploy troops," the report reads. …….Accordingly, the committee is calling for the development of a broad-based strategy for HUMINT that incorporates defense intelligence requirements and capabilities. ……."

New York Times 6/2/00 James Risen "……An ambitious plan to create a post to oversee the government's spy-catching efforts has been shelved by the Clinton administration, largely because of strong opposition from Attorney General Janet Reno, federal officials said today. The job of a national counterintelligence executive was proposed to answer widespread criticism of the government's efforts to combat espionage. ……… The proposal, the product of a yearlong interagency review, gained high-level support, including from Louis J. Freeh, the director of the Federal Bureau of Investigation; George J. Tenet, the director of central intelligence, and John J. Hamre, who until recently was deputy secretary of defense, officials said. But Ms. Reno blocked the proposal, and some officials said they believed that her opposition was the product of her ongoing feud with Mr. Freeh, whose agency is charged with overseeing domestic counterintelligence. ......"

Las Vegas Review-Journal 6/15/00 "……First, Energy Secretary Hazel O'Leary, who controlled access to America's top nuclear secrets, eliminated color-coding of Energy Department badges to indicate levels of security and access. Why? She said she found the practice "discriminatory." ……. Next, overruling his own Pentagon, State Department and intelligence agencies, Mr. Clinton personally granted a special exemption to Loral Aerospace and Communications -- whose CEO was the Democratic Party's single largest individual contributor in 1996 -- to provide technology to Communist China. ……Then, General Accounting Office agents made headlines a few weeks ago when they bought the equivalent of cereal-box badges over the Internet and used them to bluff their way past guards and metal detectors, penetrating the Pentagon, the State Department, Attorney General Janet Reno's outer office, and even the FBI and CIA. ……. Now, it turns out two computer hard drives containing nuclear weapons secrets were discovered missing from a high-security vault at Los Alamos while a wildfire raged there May 7 -- though the disappearance was not reported to the Energy Department until June 1 and wasn't made public till Monday. ……. Can it really be a mere coincidence that an administration which from the first has seen the nation's military and security apparatus as a happy playground for experiments in social progressivity, now finds its security systems leaking like a sieve, and no one minding the store? …….. Of course, none of the blame will fall on the Clintons. Like the absent-minded drivers who weave from lane to lane and then speed on, oblivious to the screeching brakes and smoking wreckage left behind them, they'll all be retired and swigging Knickerbockers on the porch by the time America's men and women in uniform have to pay the final price for this parade of folly. ….."

TIME DAILY 6/4/00 Tony Karon "……Justice Department slams FBI over Wen Ho Lee affair; meanwhile, White House is whacked for underfunding intelligence operations…….. Beijing appears to have acquired U.S. nuclear secrets, and yet Washington has been unable to find any spies - and the government wants to know why. A Justice Department internal report, leaked to the media this week, slams the FBI both for errors in its investigation of Los Alamos nuclear scientist Wen Ho Lee and for focusing too narrowly on Lee to the exclusion of other potential suspects. Despite more than a year of investigation, Lee remains the only suspect indicted, and he's been charged only with mishandling classified information by downloading classified files onto his own computer rather than with actually passing information to China. …….Although it criticizes the DOJ for failing to approve an FBI request to place Lee under electronic surveillance, the internal report faults the FBI for not initially searching the computer at Lee's office - for which no warrant was required - onto which he had downloaded reams of classified computer code. ……..The DOJ report, however, deals with investigating and prosecuting espionage violations after the fact. The House Committee on Intelligence, meanwhile, has slammed the Clinton administration for allegedly weakening the nation's intelligence services through lack of funding. …... "

AP 6/14/00 Tom Raum "…..Sponsors of legislation to make disclosing classified information to the news media a felony punishable by up to three years in prison agreed to take a closer look on Wednesday after strong objections were lodged by Attorney General Janet Reno. But Sen. Richard Shelby, R-Ala., the chairman of the Senate Intelligence Committee and principal sponsor of the measure, said he had no intentions of weakening the proposed legislation, which has already been approved by his panel and is awaiting a vote by the full Senate. ``We basically agree that we need a tougher criminal statute,'' Shelby told reporters after his committee met behind closed doors with Reno, CIA Director George Tenet and FBI Director Louis Freeh. ….. The Clinton administration opposes the legislation, approved by the Senate panel last April as part of its annual legislation authorizing programs for the coming fiscal year for the CIA, the National Security Agency and other intelligence agencies. ….."

WorldNetDaily 6/15/00 Paul Sperry "….."The incident at Los Alamos is just the latest in a series of security problems that have plagued the government recently," the New York Times reported. The government? Please, Americans aren't blind. Unlike the Mr. Magoos in the mainstream media, they can see a pattern has developed over the past seven-and-a-half years of the Clinton administration. ...... Security breaches have spread to every federal agency dealing with national security secrets, from Commerce to Energy's nuclear weapons labs to the Pentagon to State and to even the CIA. …… Yet they are all brushed off by Clinton officials as isolated incidents. And the trumpeting strumpets in the prestige press go right along with the melody, suspending their trademark skepticism. ……But make no mistake: These aren't accidents. Career officials in the U.S. intelligence community say privately that the Clinton administration came in and ordered a wholesale stand-down of national security safeguards in every agency that counts. The Clinton administration, not "the government," has turned our national security complex into a sieve. And the holes just keep getting bigger -- and the espionage apparently bolder. …….But it wasn't an inside job, administration officials say; no spies here! Must have been "misplaced" or "destroyed." Yeah, an absent-minded scientist left them on his dashboard along with his Blockbuster rentals and wants to avoid the lab fine of returning melted tapes. Give me a break. Such mind-numbing excuses are typical of an administration that thinks we're all a bunch of Hottentots ready to be colonized. What's shocking is that the establishment East Coast media keep chugging the swill. …..

WorldNetDaily 6/15/00 Paul Sperry "….."Few, if any, mainstream stories on the latest Los Alamos leak so far have mentioned the findings of the bipartisan Cox Commission report. Just a year ago, it documented how China's People's Liberation Army stole from Los Alamos and other labs secrets to every warhead deployed in the U.S. arsenal. …….And the massive Chinese espionage has bunched up hard on Clinton's watch. Eight of the 11 cases cited in the Cox report took place during the Clinton years, as I first reported in a June 9, 1999, IBD story (which was later excerpted by L. Brent Bozell III in the Wall Street Journal). And 10 of the 11 leaks were first discovered then. (I gleaned this from just the 872-page declassified version of the Cox report. An additional 375 or so pages were censored by the White House. No telling what horrors lurk in there.) ...... Nor has the media bothered to add that "Taiwanese American scientist Wen Ho Lee" -- who's in jail now for downloading Los Alamos nuke codes on 10 portable tapes (seven of which are missing) -- has traveled extensively in China in recent years, giving lectures (and who knows what else) to PLA nuclear physicists. …… By reporting all this parade of security lapses in fits and starts and not putting them into any broader context, the media is doing a disservice to the American people. ……Reporting each new leak without any linkage has the effect (perhaps desired) of desensitizing, rather than shocking, us...."

WorldNetDaily 6/15/00.R. Nyquist "……The only problem is, when vital secrets were stolen from Los Alamos last month, the incident was not reported for more than three weeks. How did that happen? ...... Bureaucrats are remarkably adaptive. They watch their bosses and realize that safety is found in imitation, which is the sincerest form of flattery. The entire chain of command leading up to the president, excepting Secretary Richardson (who is relatively new to his job), is notorious for delaying the transmission of bad news regarding U.S. security problems. ……Take the case of successful Chinese espionage, discovered in 1995. According to the Cox Report, "The Department of Energy briefed the Secretary of Energy about the matter in late 1995 and early 1996." ……But Richardson's predecessor did not order his department to brief the FBI, the Attorney General or the president's National Security Advisor until April 1996. After that, National Security Advisor Sandy Berger waited until July 1997 to brief President Clinton. In each case, an interval far greater than three weeks was involved. ......,Why does something as important as successful Chinese espionage against the nation's nuclear weapons labs go unreported to the president for 18 months? And why did it go unreported to the National Security Advisor for three to four months? ......"

WorldNetDaily 6/15/00.R. Nyquist "……There is a possible answer to this question, which is suggested by something the Cox Committee discovered while its report was being declassified. Berger had originally testified that he'd only briefed the president on the theft of U.S. nuclear information in early 1998. Then, suddenly, he had a different recollection -- that Clinton had been told in July 1997. …….. It's always of interest when a Clinton administration official changes his testimony. As everyone knows, the president is ultimately responsible for everything that happens in the Executive Branch. If the president wasn't told, the president cannot be blamed. Therefore, it is a good thing for Clinton if his underlings do not tell him about certain problems. This would only make sense, of course, if Clinton doesn't care about fixing these problems. In this context, we need to ask a couple of pointed questions. If Berger withheld vital intelligence from the president for 18 months, wouldn't the president be furious? So why wasn't Sandy Berger fired? ………. Now this is an intriguing question, and it goes directly to the heart of all our security problems. People in Congress may be angry with Secretary Richardson at the moment, but the problem with security at our labs begins and ends with the president himself. ……."

WorldNetDaily 6/15/00.R. Nyquist "……As much as some people would like to lay all the blame for security lapses on Energy Secretary Richardson, American culture and President Clinton are the real culprits. In all probability Clinton knew about the theft of the W-88 warhead from the outset. He just wanted an excuse for not taking action -- for not ordering an investigation. And Sandy Berger provided that excuse by initially telling Congress that the president hadn't been informed until 1998. Afterwards Clinton realized that this wouldn't fly and Berger amended his story, suddenly remembering that he'd told Clinton in July 1997. ......There is an additional question -- which is very disturbing -- that we have to ask about Clinton's behavior. Why did Clinton do nothing, until prompted by Congress, about major Chinese espionage against our weapons labs? ………. Perhaps we should use our imaginations a little. In fact, we should supplement our imaginations by recounting what happened with regard to an earlier investigation into espionage at our nuclear weapons labs. ......,, Peter Lee is mentioned by name in the Cox Report as a Taiwanese-born scientist at Los Alamos National Laboratory who was convicted of espionage in 1997. When the Justice Department's handling of this case came under congressional scrutiny last April, Sen. Arlen Specter, R-Pa., ran into a brick wall. Janet Reno's Justice Department was "stonewalling" his investigation of the case. ……… Well, it may sound absolutely incredible, but here's the punchline. The sentencing of Peter Lee was held on March 26, 1998. Lee got a five-year suspended sentence and 12 months in a halfway house. And he also got a fine. What does all this signify? It only goes to show the kind of man we have in the White House and the kind of signals he gives to his underlings. As the old saying goes, "a fish rots from the head."......"

WorldNetDaily 6/15/00 Anthony LoBaido "…..Thanks to a group of transnational amateur astronomers -- particularly heavens-above.com, a private satellite-tracking program on the World Wide Web -- any person on earth can type the name of a city or town, come up with an exact latitude and longitude, and learn exactly when Western satellites will be overhead ready to snap pictures. …….. Pictures of license plates. Pictures that show how a North Korean intelligence agent parts his hair. Azimuth, star charts, satellite apogees -- it's all there waiting at heavens-above.com. …….. WorldNetDaily recently played some secret war games with heavens-above.com. Clicking on the website for The Center for Non-Proliferation Studies, WND found that Libya has a chemical weapons plant at Tarhunah. …….. WND clicked on Libya, then simply typed in Tarhunah. The latitude and longitude immediately appeared. Tarhunah is at 32.433 degrees latitude and 13.633 longitude. It is even possible to double-check a location, since heavens-above.com gives the exact distance between Tarhunah and seven surrounding towns and cities and their exact latitude and longitude. Mazraat Squil (1.6 km), Ash Sharsharah (4.0 km), Mazraat Saquil (7.3 km), Muhayyah (8.0 km), Mazraat Kataraylla (8.7 km), Mazraat Titanu (8.7 km) and Al Khadra' (12.7 km) are all listed. ......"

Electronic Telegraph 6/14/00 Michael Smith "……THE American President learned six months before the British Prime Minister that MI6 had gained access to the names of hundreds of KGB agents in the West, a parliamentary investigation has found. The CIA was told within weeks about the Mitrokhin archive containing thousands of KGB documents copied and smuggled into Britain in May 1992 by a Russian defector. George Bush, a former CIA director and then US President, was apparently told almost immediately. But it was not until six months later, in January 1993, that the Chief of MI6, known as "C", told John Major, then Prime Minister. …….. The Commons intelligence and security committee concluded: "There is evidence that the US President could have known about this important UK intelligence success before the Prime Minister. There is no documentary evidence that the Prime Minister was briefed on Mr Mitrokhin until Jan 13 1993." But the committee concentrated its fire on MI5 for a series of "serious failures" over the affair. The most damaging concerned Melita Norwood, 87, the so-called "granny spy". ….."

The Washington Pos 5/23/00 Vernon Loeb "…..Former senator Warren B. Rudman (R-N.H.), chairman of a panel that counsels the president on intelligence issues, is representing a client in a case involving a U.S. intelligence agency. ……."What happens when the PFIAB is dealing with a very, very sensitive case involving U.S. intelligence and drug trafficking in Mexico?" he asked. "Does [Rudman] excuse himself from the room? ……. Rudman's involvement has raised eyebrows on Capitol Hill and led one ethics watchdog, Charles Lewis of the Center for Public Integrity, to question whether Rudman can represent clients in matters involving agencies overseen by the panel he chairs, the President's Foreign Intelligence Advisory Board (PFIAB). …….But Rudman said yesterday his work for Mexican financier Carlos Hank Rhon did not represent a conflict of interest or the appearance of a conflict, since PFIAB has not had any involvement with the agency in question, the National Drug Intelligence Center (NDIC). "I am fastidious about conflicts of interest and this is not one," Rudman said in an interview. ……. Hank Rhon hired Rudman to contest allegations leaked to the press a year ago as part of a draft report by the NDIC. On Hank Rhon's behalf, Rudman wrote to Attorney General Janet Reno in February, asking her to "repudiate" the center's draft as "false and defamatory" and based on "raw, unsubstantiated, unproven data." …….Rudman said yesterday that if Hank Rhon had come to him with a matter involving the CIA or any other intelligence agency with which he has contact as PFIAB chairman, he would have refused. But since he has never had any involvement with the NDIC, which he called only a "technical" member of the intelligence community, Rudman said he and attorneys in the Clinton administration did not believe his representation of Hank Rhon represented any kind of conflict. …….. Lewis disagrees. "What happens when the PFIAB is dealing with a very, very sensitive case involving U.S. intelligence and drug trafficking in Mexico?" he asked. "Does [Rudman] excuse himself from the room? This is so typical of Washington--what hat are you wearing when you make the power call? Are you the PFIAB chairman? Or are you the attorney for one Mexican banker?" ……"

The Washington Post A SECTION; Pg. A01 6/2/00 "……One of Mexico's wealthiest and most politically powerful families is so involved in drug trafficking and money laundering that the father and two sons "pose a significant criminal threat to the United States," according to a recent report by the U.S. government's main drug intelligence task force. ……… The report drew on information from the Drug Enforcement Administration, FBI, U.S. Customs Service, CIA, Interpol and other agencies.….. The investigation of the Hank family, known in Mexico as Grupo Hank, was approved Dec. 9, 1997, and concluded earlier this year. …… Robert Siegfried, a New York-based spokesman for Carlos Hank Rhon, called the report "nothing more than recycled misinformation. . . . Any allegation or assertion that Carlos Hank-Rhon or any of the businesses in which he has an interest have been or are involved in illicit activities are and have been proven to be unequivocally false." ….. ."

Freeper Wallaby "… [Howard] was the only conservative to warn that David Souter would promote abortion if he was confirmed as a Supreme Court justice; not even President Bush, who nominated Souter, realized this. But Souter was being pushed by Senator Warren Rudman, a pro-abortion Republican who is now John McCain's closest advisor. Rudman urged Souter on Bush precisely because he knew how liberal Souter really was, as he later admitted in his memoirs. (Sobran: "Lesser Evils" [Souter and Rudman Revisited] ) …"

 

U.S. News & World Report 6/26/00 Warren P. Strobel and Douglas Pasternak "…..The scene was both shocking and shockingly familiar: yet another major security lapse, and thundering senators demanding answers-and maybe heads-from apologetic bureaucrats. The last year has seen State Department computers go missing, suspected Chinese infiltration of U.S. nuclear labs, and a former CIA chief caught taking his secret-stuffed computer home. What now? This: Two computer hard drives the size of soap bars, filled with information about U.S. and foreign nuclear weapons, disappeared from a supposedly secure 3-by-10-foot vault at Los Alamos National Laboratory in New Mexico. …..And a new report by the department's inspector general details yet another security blunder with hard drives, this one at the department's Savannah River site in South Carolina. Drives and floppy disks with unclassified, but still sensitive, nuclear data were sold for surplus. They were being readied for shipment to China when a local businessman noticed the mistake and alerted officials………."

U.S. News & World Report 6/26/00 Warren P. Strobel and Douglas Pasternak "…..Congress thought it had ordered Energy's security debacles fixed last year, establishing a new agency in the department to oversee the vast nuclear weapons complex. But the White House and Richardson didn't want to cede authority to the National Nuclear Security Administration. With exquisitely bad timing, news of the missing drives broke as a fellow Democrat, Sen. Richard Bryan of Nevada, was holding up confirmation (many suspect at Richardson's behest) of the new agency head. The "hold" was suddenly lifted last week, and the Senate, voting 97-0, confirmed Air Force Gen. John Gordon to the post……..It was just a year ago that a presidential board called the department "a dysfunctional bureaucracy . . . incapable of reforming itself." That was after Wen Ho Lee, a Los Alamos scientist, was suspected of transferring mounds of secret data to unclassified computers…….."

U.S. News & World Report 6/26/00 Warren P. Strobel and Douglas Pasternak "…... Last week, senators demanded to know why 26 Los Alamos workers had permission to take sensitive data in and out of the vault with less of a tracking system than a Blockbuster movie rental. In 1992, the Bush administration eliminated governmentwide rules requiring signatures to take custody of classified data, except for "top secret" and above. The hard drives contained only "secret restricted data." …….In the old days, spies had to go through the cumbersome process of photocopying documents. Now, they just log on. …… Last month, congressional probers showed how easy it is. Using IDs downloaded from the Web, they posed as cops to penetrate secure areas at the CIA, Justice Department, and 17 other agencies……Last week's incident would have been far less serious if the data on the hard drives had been encrypted. They weren't. ….."

 

Reuters 6/19/00 Jim Wolf "…..A top aide to President Clinton said Monday that unspecified hostile countries were probing U.S. computer networks for ways to spark mayhem if war broke out. "This is not theoretical. It's real," said Richard Clarke, the White House National Security Council staff coordinator for security, infrastructure protection and counter-terrorism. For years, Clarke has been warning of the threat of an "electronic Pearl Harbor" in the form of blitzes on the computerized infrastructure that increasingly binds the United States. In remarks to a cyber-security conference, he said several countries were carrying out "electronic reconnaissance today on our civilian infrastructure computer networks." They were "looking for ways that they could attack the United States in a time of war," Clarke told the session organized by the American Enterprise Institute, a public policy research group in Washington. ……"

KIRO (Seattle) TV 6/19/00AP "….Guardian One, the helicopter flown by the King County sheriff's department, was grounded briefly when the pilot and observer were injured by a high-powered laser. The incident occurred Friday as the chopper flew over West Seattle. Both deputies were briefly blinded by a bright flash of light from the ground. Though they could see, the helicopter landed immediately and both were taken to Harborview Medical Center for examination. No serious damage was detected but both complained of headache and "scratchy" eyes Saturday. ..."

Washington Times 6/23/00 Bill Sammon "…… As gasoline prices skyrocket, so does value of Gore's oil stock Vice President Al Gore, who is trying to link George W. Bush to soaring gasoline prices by emphasizing the Texas governor's ties to the oil industry, controls at least $500,000 worth of stock in Occidental Petroleum. The stock came from Armand Hammer, an oilman with communist ties who served for decades as financial benefactor to Mr. Gore and his father, Sen. Albert Gore Sr…….. Mr. Hammer, who used to brag that he kept the elder Gore "in my back pocket," is believed to have helped recruit Soviet spies to infiltrate the U.S. government…….. The Bush campaign said Thursday it is hypocritical for Mr. Gore - who controls between $500,000 and $1 million of Occidental stock and is paid $20,000 a year by the firm - to portray the Texas governor as a tool of Big Oil…….."

CBSNEWS 6/24/00 "…..An inventory of all classified data at Los Alamos National Laboratory, taken in response to criticism over the disappearance of two top-secret hard drives, has found two more possible security breaches, a lab official said Saturday. That was not good news for an agency whose head was told at a Senate committee hearing this week that he had lost all credibility. ….. The two 10-year-old floppy disks, containing classified information, were reported missing Wednesday at the nuclear weapons lab. ….. However, they were found a day later, attached to a paper report in a nearby, secured area. And apparently no classified information was compromised, lab spokesman Jim Danneskiold said. ……. This and the second case, involving an unlocked door, aren't as serious as the missing computer hard drives, but Danneskiold said the disappearance of the floppy disks will be investigated by the Department of Energy, which oversees the lab. ……The disks "are obsolete. Very few, if any, computers are around that can read them," he said. The disks had last been recorded in an inventory conducted two years ago. ……"

AP 6/23/00 "…… The United States could force the Chinese news agency Xinhua to give up a new building bought near the Pentagon because the agency didn't get the needed approval, the State Department said Friday. Department spokesman Philip T. Reeker said the department ''can require divestiture'' of the seven-story building under the law that governs foreign missions in the United States. ''We're looking at the options,'' talking to the Chinese Embassy and consulting with the Justice Department about how to handle the issue, Reeker said. Reeker says the Chinese Embassy was notified in May, 1985, the government-affiliated Xinhua would come under the Foreign Missions Act, which says among other things that missions must get prior approval to sell or buy real estate. ……"

Washington Times 6/21/00 Rowan Scarborough "…….Communist China's state-run news service has purchased a seven-story apartment building overlooking the Pentagon and will evict the residents to turn the 32-unit building into its Washington news bureau. A notice to tenants said the Pentagon Ridge sale to Xinhua was completed June 15…….The building would give the Xinhua News Agency a significant news gathering presence in Washington……..Specialists in Chinese affairs expressed surprise yesterday that the U.S. government would allow it because Xinhua is directed by the People's Republic of China and is described by Western observers as a front for the Ministry of State Security (MSS), China's version of the Soviet KGB. The ministry conducts security operations at home and espionage abroad……The specialists say Xinhua's high-ground location in the new building, near Interstate 395, could provide the opportunity to covertly monitor Pentagon comings and goings……."This is shades of the Soviet grab for high ground in the '70s and '80s after we let them move into their new facilities on top of Georgetown," said Rick Fisher, a China authority with the Jamestown Foundation. "We soon discovered lasers and other listening devices for the new Soviet residents."……"

USA Today 6/22/00 Richard Willing "……The Army, its computers increasingly under assault from hackers, is about to begin using security systems that identify body parts, voice patterns and even body odors to replace the password-based systems that now control access to everything from battlefield weapons to officers' clubs. A headquarters for the new "biometric" security system is scheduled to open here next week. A center that will store the digital images of soldiers' fingerprints, earlobes and other characteristics in a database is expected to open by August. …….. Biometrics involves using computer scans to identify a person's unique characteristics, such as eyeball patterns, fingerprints and hand shapes. The scans then are stored digitally. A computer uses video cameras and sensors to match those "templates" with the patterns of would-be users. …….It may sound like something straight out of a James Bond fantasy, but officials say biometric identification will defeat hackers who mount an average of nine attacks a day on Army computers by trying to determine randomly generated passwords. Password-oriented computers now run virtually all Army systems. ……"

Newsday.com 6/21/00 AP David Briscoe "….Chinese journalists are setting up house within earshot -- or at least within view -- of the Pentagon, but a Defense Department spokesman said he is not worried. Pentagon spokesman Ken Bacon said he learned of Chinese plans to take up residence in a building that has a clear view of some of the building's outside windows from a front-page Washington Times story Wednesday. ……. The report quoted a Real Estate agent on the building's new tenants, with confirmation from an official of the Chinese government-affiliated Xinhua News Agency. It also quoted a China specialist, Rick Fisher, as saying the building could provide a base for covert monitoring of the Pentagon. …… Jiang Liu, Xinhua bureau chief, called the suggestions of spying ''groundless, absurd and irresponsible.'' He said he was accurately quoted, however, in denying that his agency conducts spying. …..He said Xinhua purchased the seven-story building in Arlington, Va., where it has been seeking new offices and living quarters for some time. ……"

WorldNetDaily.com 6/22/00 Paul Sperry "…..In 1995, Aldrich left the White House, where he worked as one of the FBI agents tasked with clearing new White House hires for security passes. ...... The next year, his book, "Unlimited Access: An FBI Agent Inside the Clinton White House," was published. The shocking bestseller charged, among other things, that White House officials were hiring hard-drug users and other security risks over agents' vetoes. Many of them gained access to classified information without proper clearance. ……. After being pilloried by the White House and its friends in the prestige press as a "liar," Aldrich became withdrawn. And when other law-enforcement agents failed to back his story -- and his own agency turned over his manuscript to the White House, without his consent -- he became disillusioned with his whole profession. He was out on a long, lonely limb, and the sound of sawing was deafening. But slowly, with each new report of security lapses, his story of loose security and reckless conduct has been confirmed. ……..At the White House, drug and gun smugglers were waved into fund-raising coffees with the president and vice president. One Clinton donor with Beijing ties even managed to sneak a foreigner past the Secret Service using a bogus driver's license. But it's not just the White House……"

WorldNetDaily.com 6/22/00 Paul Sperry "…..A recent undercover sting by Congress turned up alarming security failures at 19 government agencies, including the Pentagon and even Aldrich's former employer, the FBI. And now, with yet another major security breach at Los Alamos National Laboratory, more and more fingers are pointing back to the White House. ……..In every agency that deals with protecting national-security secrets, normal security rules and procedures have been ignored, changed or tossed during the Clinton-Gore years. …….Clinton appointees have kicked open lab gates to foreign visitors, even ripping out the doors to the Energy Department's executive suites. They've shelved security badges. They've cut funding and staff for Pentagon background checks, resulting in a backlog of hundreds of thousands. The CIA's own director downloaded classified files onto an unsecured home computer used, among other things, to access Internet porn. Officials at the State Department, where escorts were no longer required for foreign visitors, have "lost" top-secret laptops. ……."

WorldNetDaily.com 6/22/00 Paul Sperry "…..Aldrich served 26 years as a special FBI agent, specializing in white-collar crime such as fraud and political corruption. He married an FBI agent. They have three teen-agers. Save a portrait of American patriot Patrick Henry ("Give me liberty or give me death") hanging behind his desk, his office walls are bare. But his desk is stacked high with paperwork. WorldNetDaily sat down with Aldrich to talk about the recent security lapses and what can only be described as sad vindication for his troubles. This is the first of a two-part interview…….

Q: Why the laxity in security? You had access to classified information about Clinton and national security issues. What do you think's going on?

A: I would go further than that (laxity) and say it's a national security meltdown, which is a direct consequence of policies and procedures from the top, from the White House.

And also because of the appointments of certain individuals to key posts in these agencies that deal with national security, like the Department of Energy and over at the CIA. They bring political appointees into those positions who have the authority to alter the security set-up, and they do.

Q: Like who?

A: In the case of Energy, it was Hazel O'Leary who knocked out all the barriers. In the case of CIA, it was (executive director) Nora Slatkin. She was so hostile to the process of badges and background investigations she refused to carry her own badge. And so they had to have an employee walk around the CIA with her carrying her badge to put it up against the various checkpoints. She refused to wear a badge. In the case of the Department of Energy, for example, Hazel O'Leary didn't like the discriminatory nature of the different colored badges, which would allow you in different places in the Energy Department and labs. Therefore, she ordered all badges should look alike so people didn't feel bad about the kind of badge they had.

This is the kind of liberal, la-la thinking that has permeated (the federal government). And what was the response of the so-called intelligence community, the people who are charged with making sure the country is safe? Capitulation, silence, transfer, retirement. The people who were charged with protecting the national security of this nation took a pass.

And I'm angry about that, because they all enjoyed those (high-paid) GS-13, 14 positions. They all had great medical benefits and they got great retirement programs. They also took an oath. And yet, when it came down to it, very few stood up against this. And instead, they turned their backs on it and walked away. And that says something about the kinds of people the government is hiring into these key positions. I'll say it again: Career, federal security professionals took an oath to the Constitution to defend this nation against threats foreign and domestic. For them to know what they know, and to stand by and watch it happen, is as close to treasonous as I can imagine anything is. ……

Q: So why isn't there more public outrage about the administration's cavalier attitude towards national security?

A: The normal American can't imagine people in the White House who don't have U.S. interests in mind. They can imagine that people are working in the White House who want to alter things a little bit this way, or tweak them that way. But they can't comprehend that we would actually have traitorous people inside our White House, some of them at the highest levels. Look, the Clinton administration doesn't care if China or Cuba or North Korea get our secrets. They don't care. It isn't because these people are stupid. They don't care.

Q: How much do you think the public knows, through the media, about this national security "meltdown," as you call it? Could you put a figure on it?

A: I'd say 25 percent. One of the reasons is the disinterest on the part of the media overall. But, despite recent (inside-the-Beltway) interest in national security, for a long time there were just a couple of us carrying around a candle in this town. (Former Reagan Defense official and Center for Security Policy director) Frank Gaffney is another. For the longest time I couldn't find interest even on Capitol Hill about the issue of national security, except for on the part of a few. Remember that most of these problems at the White House related to national security were run by the House and Senate intelligence committees. I never saw any interest on their part, not until recently. I had high hopes when Republicans took over Congress that we'd see some attention paid to these matters. Lord knows, we gave them a road map. Yet, they by and large haven't shown an interest. Now there's something wrong with that....

Q: You dealt with former senior Clinton aide Patsy Thomasson when you were in the White House. Are you comfortable with her, in her new State Department job, being in charge of our foreign buildings, including embassy security?

A: No. She wasn't any good at security at the White House, and she's no damn good at security at the State Department. The woman's background speaks for itself. She worked for a convicted drug dealer, and she was in charge of drug testing at the White House. And now she's evidently in charge of diplomatic pouches? It's a joke, frankly. It makes you wonder if there isn't some other grand plan here on the part of the Clinton administration to downgrade and downscale national security until we don't have any at all.

Q: What do you think of Secretary Albright and President Clinton cracking jokes to the press about these security leaks?

A: Going back to my law-enforcement background, there was a kind of con man who really was head and shoulders above the best con men. And that con man would crack wise about what he was doing. We caught many of them like that. They would actually put into their documents little signs and signals that they were crooks, that they were con men, as a joke. Because they thought the people they were fleecing were so stupid, they would never notice what they were doing to them, and they'd get a good yuck at their expense. That is a mentality that law-enforcement officers are very familiar with. And it's shared by this president and a lot of his people.

The Times-UK 6/18/00 Adam Nathan "……BUNGLING Nato scientists have created a computer virus "by mistake", causing military secrets to find their way onto the internet. The virus, called Anti-Smyser 1, was created by scientists at Nato's Kfor peacekeeping force headquarters in Pristina, Kosovo. They were seeking protection from virus attacks similar to those launched at Nato by the Serbs during the Kosovo conflict. But the experiment went wrong, and scientists accidentally unleashed the virus on themselves... "

YAHOO! News/REUTERS 6/18/00 "……Security breaches at federal government agencies under the Clinton administration are endemic and pose a continuing threat to the United States and its allies, a key Republican senator said on Sunday. Sen. Richard Shelby, chairman of the Senate Select Committee on Intelligence, told ``Fox News Sunday'' the failure to guard national secrets constituted a ``malignancy'' at the heart of the U.S. government. Asked to comment on the most recent national security breach at a federal agency, the disappearance of two highly sensitive computer hard drives at Los Alamos National Laboratory, Shelby said ``our (public) libraries would have better security on their books anywhere in America.'' …… Speaking on ``Fox News Sunday,'' Deputy Energy Secretary T.J. Glauthier said investigators ``can't tell for sure'' at this time whether the hard drives, recovered on Friday under suspicious circumstances in an area of the lab already searched twice, had been copied or tampered with. The FBI is looking into that possibility, Glauthier said. He defended improvements in security procedures at Energy Department labs over the past year, but conceded ``we had not properly accounted for the human element'' and needed to make greater efforts to ``change the culture at these laboratories.'' While no evidence of espionage had been uncovered and ``the vast majority are doing their jobs well'' at the department, Glauthier admitted the agency probably harbored ``a few bad apples'' who had compromised security out of negligence or, possibly, criminal intent. ......"

Toogood Reports 6/19/00 Vin Suprynowicz "……. In the capital, senators expressed outrage last week at the way the Clinton administration has botched the nation's nuclear security system. First, Energy Secretary Hazel O'Leary, who controlled access to America's top nuclear secrets, eliminated color-coding of Energy Department badges to indicate levels of security and access. Why? She said she found the practice "discriminatory." Of course it's "discriminatory." It helps guards "discriminate" between authorized personnel and spies. Duh……… Next, overruling his own Pentagon, State Department, and intelligence agencies, Mr. Clinton personally granted a special exemption to Loral Aerospace and Communications - whose CEO was the Democratic party's single largest individual contributor in 1996 - to provide secret missile launch technology to Communist China (whose agents, in turn, Mr. Clinton entertained in Lincoln bedroom sleep-overs as they funneled millions in illegal cash to his re-election campaign.)…….General Accounting Office agents made headlines just a few weeks ago when they bought the equivalent of cereal-box badges over the Internet and used them to bluff their way past security guards and metal detectors, penetrating the Pentagon, the State Department, Attorney General Janet Reno's outer office, and even the FBI and CIA.…..When the news of the missing drives did finally break, Democrats - who had been stalling the appointment of an Air Force general as the new custodian of the nation's nuclear arsenal - finally threw in the towel, and the Senate voted 97-0 to confirm Gen. John Gordon to head the new National Nuclear Security Agency……….. Of course, none of the blame will fall on the Clintons. Like the absent-minded drivers who weave from lane to lane and then speed on oblivious to the screeching brakes and smoking wreckage left behind them, they'll all be retired and swigging Knickerbockers on the porch by the time America's men in uniform have to pay the final price for this parade of folly……."

UPI 7/1/00 "…..University of California officials say they won't be sorry to lose security responsibilities at the nation's nuclear weapons laboratories since they are educators better suited to science than counterespionage……. "We are not spy folks; we are science folks. So if the government would like to supervise the security, that is a plus,'' UC Regent William Bagley told the San Francisco Chronicle in a story published Saturday. "It is their responsibility, anyway."……… Energy Secretary Bill Richardson announced Friday that his department's contract with the UC system would be "restructured" in order to revamp security measures at the labs that university systems manages……..The Livermore lab near San Francisco has also come under recent scrutiny. The Los Angeles Times said Saturday that a former scientist recently filed a lawsuit charging the lab with covering up alleged problems with the handling of plutonium. Livermore has also been over budget and behind schedule on construction of the National Ignition Facility -- a costly high-tech nuclear fusion project……"

WorldNetDaily 6/29/00 David M. Bresnahan "…….. Despite alleged misuse of Army computers and other long-term security breaches at the Army Research Labs at Maryland's Aberdeen Proving Grounds, official Defense Department spokesmen continue to deny and cover up allegations of malfeasance on the part of high-level officials there.... ……WorldNetDaily has obtained documentary evidence from whistleblowers within ARL -- almost all of them current employees -- that point to a long history of corruption, including use of Army computers by unauthorized foreign nationals, plagiarism, falsification of research, illegal appropriation of private property, even smuggling of precious gems. ………..... WorldNetDaily has obtained official documents confirming that investigations have taken place in the past and are underway now. Those investigated -- both internally (by Dr. Allen Grum, a retired Army general) and by the U.S. Office of Special Counsel -- for various allegations of malfeasance are ARL civilian employees. They include Dr. Ingo May, Gloria Wren, Albert Horst, William Oberle ……."

Anonymous email to Alamo-Girl 6/26/00 "…….Have worked with some DIA people in the past in Singapore. This boy is in deep doodoo. They want to strip him of whatever information he knows, and a Navy O-6 intel guy knows a lot! …..NewsMax.com 6/26/00 "……. It has been almost 12 weeks since Edmond Dean Pope, a retired captain of the U.S. Navy, was arrested in Moscow on suspicion of espionage; yet the State Department has shown little interest in his well-being. According to members of Pope's family, the State Department has not issued a public statement of any kind concerning Pope's April 3 arrest, nor has it forcefully protested the matter with the Russian government. Pope is a former naval intelligence officer and a decorated Vietnam veteran who retired from service in 1994. He served at the Defense Intelligence Agency and worked in Navy research in both the public and private sectors, but perhaps the one office he held that incurred Moscow's wrath was when he had served at the U.S. Embassy in Sweden. The embassy was well known to be a U.S. spy outpost during the Soviet era. ……The State Department's silence seems all the more baffling because of its loud protestations about the arrest of a Russian media mogul. State Department Spokesman Philip Reeker denounced the Kremlin's arrest last week of Vladimir Gusinsky, saying, "[T]his new action against Mr. Gusinsky will obviously draw the closest scrutiny." ……"

The Associated Press 6/23/00 D Ian Hopper "…….An administrator of a Web site specializing in national security issues is publishing an unedited version of a secret history of the 1953 CIA-mastered coup in Iran found on the New York Times Web site. …….. The report detailing the CIA plot was previously published on the Times Web site with portions redacted, or blacked out, by the newspaper. But because of a mistake made by the Times, the private Web site is able to reveal names of CIA agents and Iranian officials who took part in the coup and other details that the Times decided not to publish. A Times spokeswoman says the newspaper currently has no plans to stop site administrator John Young. ……"

AP 6/29/00 "……The Chinese news agency has agreed to sell a building it recently bought near the Pentagon, putting to rest U.S. concerns about possible spy activities. ….. State Department spokesman Philip Reeker said the Xinhua news agency notified U.S. officials that it wanted department authorization to sell the building. …."We intend to authorize the sale," Reeker said Thursday, adding that Xinhua agreed not to use the building while it is being marketed. ……Rep. Dana Rohrabacher, R-Calif., one of China's most outspoken foes on Capitol Hill, said last week that "what well could be an arm of Communist Chinese intelligence is now overlooking the Pentagon and has a bird's eye view electronically of everything we're doing."( So, they'll just use cabs to deliver the packages) ……."

THE WASHINGTON TIMES 6/28/00 Rowan Scarborough "….. The State Department said yesterday it has barred China's state-run news agency from occupying an apartment building it bought June 15 near the Pentagon while the United States reviews the location's security implications. "As of right now, the Xinhua News Agency has been put on notice by the department through the embassy of the People's Republic of China that they may not occupy or use the building they have purchased without first seeking department approval," said department spokesman Philip Reeker. "We will continue to look at this. We take the issue very seriously," he said…….Meanwhile, State officials have informed senior lawmakers that the department intends to make a final decision to reject the purchase. A denial would force the Xinhua News Agency to find another site for its bureau and staff quarters……"

Washington Post 6/25/00 Vernon Loeb "….. A report by the General Accounting Office says the Department of Energy has identified more than 75 incidents of foreign spies targeting U.S. nuclear scientists traveling abroad by bugging their hotel rooms, rifling their personal belongings and offering them sexual favors. …..The report, requested by Reps. Timothy J. Roemer (D-Ind.) and Benjamin A. Gilman (R-N.Y.), faults the department for underestimating threats posed by travel to nonsensitive countries such as Britain and France. It recommends that counterintelligence officials at DOE's national laboratories review and approve all requests for foreign travel to nonsensitive and sensitive countries, a category that includes China, Russia, Pakistan and Israel…….. "Laboratories' foreign travelers face many threats in other countries," the report says. "DOE's approach of emphasizing 'sensitive' country travel discounts the reality that travelers to nonsensitive countries may be targeted by intelligence entities from 'sensitive' or even 'nonsensitive' countries."……."

The Oklahoman 7/6/00 "….. WHEN former FBI agent Gary Aldrich published "Unlimited Access" in 1996, offering a glimpse inside the Clinton White House, lots of people dismissed warnings about an undisciplined staff and the new administration's contempt for the defense and intelligence communities. ….Now it can be said: Aldrich was right. At a press conference last week President Clinton assailed a reporter's question mentioning past administration scandals -- shrugging off Whitewater, the White House Travel Office firings, Filegate, campaign finance improprieties, Monica Lewinsky and others as tempests in a teapot. ………That Clinton could, at this late date, continue to live in such denial isn't surprising. ……The aforementioned string of scandals plus security breaches at the Los Alamos nuclear weapons laboratory, missing State Department laptop computers and continuing problems turning over campaign finance- related evidence to prosecutors and congressional committees all validate the warning bulletin issued by Aldrich. ….."

WorldNetDaily 7/6/00 Charles Smith "…… The Fiscal Year 2000 National Defense Authorization Act directs the secretary of defense to submit a report "on the current and future military strategy of the People's Republic of China." According to an article published in Aviation Week and Space Technology, "China Seen Building Conventional Might" by Robert Wall, a senior defense official involved in writing the report is now charging the White House with deliberately altering the conclusions of the report. "The National Security Council staff and State Department have intervened with the details to soften the tone of the report to preserve good relations with China," charged the unnamed defense official. ……… Is the new defense report flawed? According to the June 2000 U.S. military report, "Beijing remains firmly committed to expanding its political and economic presence in such areas as Europe, the Middle East, Latin America, and Africa; however, China has no ambitions to establish a military presence in these regions." The fact is Chinese military troops are already present on the ground in Africa. Chinese soldiers are in the Sudan, guarding an oil pipeline and training the brutal Sudanese forces in the art of war against an unarmed population. Amnesty International reports that to build the pipeline, armed guards from China participated in displacing the indigenous Sudanese population. ……".

WorldNetDaily 7/6/00 Charles Smith "…… "Since the 7 May 1999 bombing of China's embassy in Belgrade," notes the Pentagon report, "China's leaders reportedly have been discussing ways to offset U.S. power, to include accelerating military modernization, pursuing strategic cooperation with Russia, and increasing China's proliferation activities abroad. However, none of these options is likely to improve fundamentally Beijing's position." ………. Clearly, the Clinton administration perceives recent Chinese nuclear modernization not a fundamental improvement for the People's Liberation Army. This view is not shared inside Beijing, since the Chinese Second Artillery Corps has deployed nearly 500 modern nuclear tipped missiles in the past 24 months. The Chinese Army's successful effort to upgrade its nuclear weapons using stolen U.S. technology and U.S.-made supercomputers is missing altogether from the evaluation. ……. Since 1993, China has gone from a 1940s level of nuclear science to state-of-the-art nuclear weapons designs. In 1993, China had to perform expensive live tests of nuclear weapons in order to field designs for combat. Today, the People's Liberation Army is equipped with advanced computer simulations models, using the latest U.S. high-speed computers and stolen nuclear codes. ……"

World Net Daily 6/30/00 David Bresnahan "….. A government official at the U.S. Army Research Laboratory in Aberdeen, Md., is under suspicion for allegedly providing foreign nationals unsupervised use of Department of Defense supercomputers, WorldNetDaily has learned. …….. In addition, a yearlong investigation has turned up allegations of fraud, plagiarism, smuggling, and waste and abuse of government computer resources -- going back at least to 1993. Efforts by whistleblowers, including 10 current employees of the lab, to report and correct the problems have resulted in what they describe as harassment and endless cover-up, as reported yesterday by WorldNetDaily. ……. The whistleblowing employees are not free to talk to the press because the Army has placed them under a gag order. However, their names appear in the many documents given to members of Congress, and when contacted some did verify that the documents are genuine. Their names will not be disclosed in these reports because of their stated fears of retaliation. ……… One official at the Army lab stated in a letter of complaint distributed to various investigative bodies: "In the case of Ms. Wren, abuses of power include breaches of computer security in what appears to have been a 'pay-off' to a contractor." That contractor, according to whistleblowers, is Craft Tech, Inc. ...... " Numerous e-mails between Wren and other Army lab executives show that she was unable to convince project leaders to incorporate her requested 80,000 hours of computer time into their projects. Finally, she allegedly gave her own personal password to Wildeggar-Gaissmaier and others to give them access to the computer, according to documents. ……..One of the whistleblowers who provided evidence to investigators said in a letter to investigators that Wren had solved the problem of subordinates objecting to what she was doing by creating a new program and placing herself in charge. ……."

World Net Daily 6/30/00 David Bresnahan "….. Scientist Kurt Fickie was fired from the Army lab after reporting that Army lab management personnel compromised U.S. military know-how and smuggled gems into the U.S. "The smuggling charges were verified and some of Mr. Fickie's other allegations were substantiated in the U.S. Army IG report of the investigation," said a whistleblower in a letter to investigators. Fickie has appealed his dismissal to the merit systems protection board. He has been ordered not to talk to the press while his case is pending. …….. Whistleblowers concerned about the potential loss of U.S. military secrets told WorldNetDaily that their greatest concern is that no steps have been taken to restrict the security clearance of Wren and others under investigation. ……"

Washington post 7/2/00 David Ignatius "…….In terms of reportorial hustle, it's hard to fault Gertz. He breaks dozens of big stories every year, and he's read carefully by people who follow national-security issues, not to mention the foreign spooks and military attaches around town. Yet precisely because he's so aggressive, Gertz poses the interesting question of what responsibility, if any, a journalist has to avoid blowing secrets. …….The National Security Agency worries about the leak problem so much that a senior official testified about it in November to the House Intelligence Committee. The official said the NSA counted 40 instances in 1998 when its signals-intelligence (SIGINT) capabilities were disclosed for the first time in the media, and 34 instances during the first nine months of 1999. Gertz's stories accounted for many of these leaks, officials said. ……"

UPI 7/11/00 Ashley Baker "……Beginning in the early 1990s, White House officials hoping to simplify government-wide classification requirements repealed a series of key regulations designed to protect classified information at the Department of Energy, according to a report released by congressional auditors Tuesday. ………. Regular inventories, the assignment of unique identification numbers, receipts for internal distribution and approval for reproductions were among the DOE requirements for dealing with classified information nulled by the White House, auditors from the General Accounting Office told members of the House Oversight and Investigations Subcommittee. ………Glenn Podonsky, director of the DOE's Office of Independent Oversight and Performance Assurance, told lawmakers the changes had their foundation in a 1990 National Security Council assessment intended to establish a single government-wide set of rules for dealing with classified information………. "These reductions of accountability requirements were part of a general trend toward reduction in security that occurred in the early to mid-1990s, partly as the result of the end of the cold war," Podonsky said. "That general trend included DOE's encouragement for sites to reduce security costs through such actions as downsizing protective forces...or downgrading clearances." ……"

UPI 7/11/00 Ashley Baker "……In 1991, according to Podonsky, DOE dropped a requirement that individuals account for "National Security" information - information that could impact national security but was not directly tied to nuclear weapons design or the production of nuclear materials. …..……In May 1992, DOE ended its accountability requirements for data labeled "secret restricted" information - information that is related directly to nuclear weapons production. Finally, in January 1998, Department officials ended accountability for "top secret" information. …….…Ineffective controls over foreign visitors. In 1988 and again in 1997, GAO reported that foreign visitors were allowed into DOE's nuclear weapons design laboratories with few background checks and inadequate controls over the topics discussed. …..Weaknesses in controls over classified and sensitive information. In one instance, a laboratory could not account for 10,000 classified documents. In 1987, 1989, and 1991, GAO reported that foreign countries routinely obtained unclassified but sensitive information that could assist their nuclear weapons capability……."

UPI 7/11/00 Ashley Baker "……In early 1999, auditors reported that under its program with Russia to prevent proliferation, DOE may have provided Russian scientists with dual-use defense-related information that could harm U.S. national security…-Lax physical security controls. GAO reviews of security personnel found personnel "unable to demonstrate basic skills such as arresting intruders or shooting accurately." At one facility, 78 percent of the security personnel failed basic tests. Auditors also found that equipment and property worth millions of dollars was missing at some facilities. Ineffective management of personnel security clearance programs dating back to at least the 1980s. Contractors resolved backlogs by not verifying information on prospective employees …………Weaknesses in DOE's ability to track and control nuclear materials. GAO reported in 1980 and again in 1991 that officials at some facilities were not properly measuring, storing, and verifying quantities of nuclear materials. Also, DOE was not able to track all nuclear material sent overseas for research. ……."

Washington Post 7/5/00 Barton Gellman "….. From a seventh-floor office in Langley some 13 years ago, Katherine J. Hall kept vigil on the unraveling of societies and states. As national intelligence officer at large, Hall supervised the CIA's taxonomy of upheaval overseas. ….. In 1990, after three years of frustrated lobbying, she and colleague Walter L. Barrows got permission to study the burgeoning growth of AIDS……Interagency Intelligence Memorandum 91-10005, distributed in classified channels the following July, foretold one of the deadliest calamities in human experience. Titled simply, "The Global AIDS Disaster," the report projected 45 million infections by 2000 - inexorably fatal, the great majority in Africa. ……"

Medium Rare articles 7/3/00 Jim Rarey "…… David Bresnahan, an investigative reporter for WorldNetDaily, has published two articles on the burgeoning scandal at the Army Research Lab (ARL) at Maryland's Aberdeen Proving Grounds. Allegations, based on reports and documentation from at least ten whistleblowers, include "a long history of corruption, including use of Army computers by unauthorized foreign nationals, plagiarism, falsification of research, illegal appropriation of private property, even smuggling of precious gems." ……..Various members of Congress have been provided the information and have been sitting on it for four years while nothing has been done. Why the cover-up?……. We may have been given a clue on March 19, 1999 at President's Clinton's press conference when Fox News reporter Wendell Goler dropped this bombshell. He stated, "Fox News has information that China has stolen top secret technical data on Electro-Magnetic Pulse (EMP) weaponry from four of our eleven secret weapons laboratories and have successfully tested the weaponry." Since that day, not one word has appeared in the national media on the subject. Instead, we have been inundated with information about lapses in security at the Los Alamos nuclear lab. ……."

Medium Rare articles 7/3/00 Jim Rarey "…… EMP weaponry stems from the findings and inventions of the brilliant European scientist Nikola Tesla, who gave us alternating current electricity. His research is being applied at a top-secret installation in Alaska called HAARP (High-Frequency Active Auroral Research program). Although passed off as merely a scientific inquiry into phenomena like aurora borealis (northern lights), in reality it is testing such things as anti-missile lasers, massive weather modification and non-lethal "psychotronic" weapons for use against military and civilian populations. When questioned about appropriations for the HAARP project, this writer's representative in Congress (who sits on the House Science Committee) admitted those appropriations are buried in the "black budget" for the intelligence community. ……So the as yet unanswered question is, was the Aberdeen Army Research Lab one of the four facilities Fox News was talking about on March 19th of last year? If so, the suspicious deaths of three key players takes on added significance. ……Bresnahan reports that two of the whistleblowers, ARL scientists Franz Lynn and Robert Deas, died shortly after trying to report their suspicions that technology from ARL was being provided to China. Deas died in a single-car accident in Canada. Lynn's death was reported as a suicide……..Even more intriguing is the supposed "suicide" of John Millis, staff director of the House Intelligence Committee…. "

Fed Week Weekly Newsletter 7/5/00 "……. More Federal Building Security Backed The House has passed legislation to increase the police powers of the Federal Protective Service, the arm of the General Services Administration that provides security services in many GSA-controlled federal buildings. The officers would receive wider rights in their investigations, including rights to request arrest warrants and search warrants and extend their authority beyond federal property. ….."

WorldNetDaily 7/6/00 Joseph Farah "…..Washington Times national security reporter Bill Gertz must be getting to some folks in Washington. When was the last time you heard of a journalist suggesting another journalist might be guilty of a prosecutable crime in revealing state secrets? I can't remember the last time I heard of it. But it happened last Sunday in the pages of the Washington Post. ……. Post columnist David Ignatius raised just that possibility in a piece titled, "When Does Blowing Secrets Cross the Line?" ……One thing the column makes crystal clear: Someone is out to get Gertz. It's no wonder. Gertz's scoops have driven the Clinton administration crazy for the last eight years. But Gertz is hardly a partisan muckraker. He'd been doing his job and doing it well long before Bill Clinton rode into town. ……And, of course, the Post not only has the means but the motive to attack Gertz and his paper, the Times, which has been a nuisance to its goal of establishing a news monopoly in Washington for the last 15 years. ….."

Wall Street Journal 7/12/00 Nick Wingfield Don Clark "…..Internet-service providers and privacy advocates are concerned about the implications of a new electronic surveillance system devised by the Federal Bureau of Investigation, with some providers vowing to resist if they are asked to install it on their networks. The FBI system, a sophisticated combination of hardware and software the agency has dubbed Carnivore, must be connected directly to an ISP's network. Once it is connected, Carnivore has the potential to keep tabs on all of the communications on the network. The FBI has said it will use the system only with valid court orders and that Carnivore will allow it to narrowly target its investigations……."

WorldNetDaily 6/19/00 Paul Sperry "…..The Clinton administration has long ignored an Energy Department report recommending "high fences" around the nuclear-bomb data stored on two hard drives that were lost for over a month and then found stashed behind a copier at Los Alamos National Laboratory, WorldNetDaily has learned. The classified material, known as Sigma 14 and 15, was deemed so sensitive that an internal group -- tasked with declassifying nuclear information as part of Vice President Al Gore's "reinventing government" initiative -- reversed itself when reviewing this category and urged greater protections. Suggested measures included a higher level of personnel clearance for access to the data -- re-classifying them as "Top Secret" -- and "more stringent" physical security measures at Los Alamos. Top Secret designation requires a sign-out and reporting system to ensure maximum accountability. ... The recommendations, sent in early 1997 to Energy Secretary Hazel O'Leary and the White House, were never implemented. ……..Energy Secretary Bill Richardson said Sunday he found it "incomprehensible" that there were no procedures for logging people in and out of the lab vault. …… The unclassified version of Energy's "Report of the Fundamental Classification Policy Review Group" was published Jan. 15, 1997. The group, led by former Sandia National Laboratories President Dr. Albert Narath, was tasked in 1995 with identifying technical data for declassification. …….. "

WorldNetDaily 6/19/00 Paul Sperry "…..On Dec. 7, 1993, O'Leary announced the plan for a fundamental review of classified materials -- the first in 50 years -- as part of her "Openness Initiative." ……....... "With the end of the Cold War, a review of classification policy to reflect current world conditions is in order," wrote Kenneth Baker, Energy's then-acting director of nonproliferation and national security, in a Feb. 28, 1995, memo to lab directors. ...... "It is important to determine which information no longer requires protection and should be made available to the public," Energy Undersecretary Charles Curtis said in a Feb. 13, 1995, memo to Dr. Narath. ......But the fundamental review also was required under Gore's so-called "ReGo" plan to reform government. ……… But "Recommendation No. 6" came as somewhat of a surprise. It states: "More stringent measures should be implemented for protection of" Sigma 14 and 15, among "137 topics identified as most sensitive." …….. Under the heading, "High Fences Around the Most Sensitive Information," the Narath report said: "The main effort of the review was focused on identifying information that no longer requires protection. However, our investigations led to the conclusion that ... strict, and perhaps higher levels of security be maintained around the most sensitive material." …….. The report continued: "Restricted Data not recommended for declassification, in general, warrant protective measures at least as stringent as those used today. Moreover, there exists a body of information within the Sigma 14 and 15 (nuclear weapons unauthorized use and use-control design and vulnerability assessment) categories that warrants special protection, namely: ……."

WorldNetDaily 6/19/00 Paul Sperry "…..The drives contained detailed technical data about U.S. nuclear weapons. They also stored drawings with weights, yields and dimensions of Russian and Chinese bombs. Investigators now say they do not store Sigma-14 information on how to actually detonate a bomb. The senior Energy official, who wished to go unnamed, says a Los Alamos classification officer told him that neither Sigma 14 or Sigma 15 data are contained on the mishandled hard drives. The official declined to say which category of information is stored on the drives. But in an interview with WorldNetDaily, Los Alamos spokesman Kevin Roark confirmed that Sigma 14 and 15 data are in fact on the drives. …… Of course, the report recommended higher "fences" for 135 highly sensitive categories besides Sigma 14 and 15. And there's no dispute that the information on the hard drives is highly sensitive. ……"

Vny.com 7/11/00 Ashley Baker UPI "…….Beginning in the early 1990s, White House officials hoping to simplify government-wide classification requirements repealed a series of key regulations designed to protect classified information at the Department of Energy, according to a report released by congressional auditors Tuesday. ……..Regular inventories, the assignment of unique identification numbers, receipts for internal distribution and approval for reproductions were among the DOE requirements for dealing with classified information nulled by the White House, auditors from the General Accounting Office told members of the House Oversight and Investigations Subcommittee. ……."I didn't believe (my staff) when they showed this to me," said Jim Wells, director of the GAO's Energy, Resources and Science Issues Division. "I wanted to ask the auditing team to go back and verify." …….."

Vny.com 7/11/00 Ashley Baker UPI "…….Glenn Podonsky, director of the DOE's Office of Independent Oversight and Performance Assurance, told lawmakers the changes had their foundation in a 1990 National Security Council assessment intended to establish a single government-wide set of rules for dealing with classified information. ……."These reductions of accountability requirements were part of a general trend toward reduction in security that occurred in the early to mid-1990s, partly as the result of the end of the cold war," Podonsky said. "That general trend included DOE's encouragement for sites to reduce security costs through such actions as downsizing protective forces...or downgrading clearances." ………In 1991, according to Podonsky, DOE dropped a requirement that individuals account for "National Security" information - information that could impact national security but was not directly tied to nuclear weapons design or the production of nuclear materials. In May 1992, DOE ended its accountability requirements for data labeled "secret restricted" information - information that is related directly to nuclear weapons production. Finally, in January 1998, Department officials ended accountability for "top secret" information. ……"

San Jose Mercury News 7/23/00 Dan Stober "…… Wen Ho Lee's wife worked for the CIA when she was a secretary at Los Alamos National Laboratory in the 1980s, a revelation that defense attorneys will use to attack the government case against the scientist accused of betraying America's most sensitive nuclear weapons secrets. Sylvia Lee supplied information about Chinese scientists to a CIA officer in her capacity as liaison between the lab and visiting delegations, according to congressional and intelligence officials, and people familiar with the case. Wen Ho Lee, who worked at the lab for nearly 20 years, also met with the CIA officer at least once before he and his wife visited China in 1986. ……The CIA connection raises a crucial question in the case: Were Wen Ho Lee's actions the work of a spy, a naive scientist or someone gathering information for the U.S. government? ……."

Washington Times 7/26/00 Rowan Scarborough "….. Defense Secretary William S. Cohen yesterday told a Senate committee he will look into a report that the Pentagon is excluding his intelligence branch from commenting on proposed weapons transfers to Israel. Mr. Cohen also told the Senate Armed Services Committee that any Middle East peace deal in which the United States is a party must include guarantees from Israel that it will not divert controlled U.S. technology and weapons to third countries…… The defense secretary was responding to a question from Sen. Robert C. Byrd, West Virginia Democrat, who cited a story in yesterday's editions of The Washington Times. The Times reported that a memo circulating inside the Pentagon's Defense Threat Reduction Agency told analysts they no longer had to gain input from the Defense Intelligence Agency before deciding whether controlled technology should be transferred to Israel. The DIA has compiled evidence that Israel has violated U.S. export regulations by transferring missile, laser and aircraft technology to communist China……."

Insight Magazine 7/16/00"……. House Speaker Dennis Hastert has told colleagues that he did not know that his new defense and foreign policy adviser was a paid, registered foreign agent. And he claims he had no idea she had sold her top Republican connections to a company controlled by a Hong Kong billionaire loyal to Beijing and tied to the Chinese military - or that she was lobbying against a Republican bill that would protect the Panama Canal against Chinese encroachment. Days or even hours before her reported July 13 appointment as the Speaker's defense and foreign policy chief, Nancy P. Dorn was a lobbyist with Hooper, Owen & Winburn, where she was a registered agent of Hutchison Port Holdings, a subsidiary of Hutchison Whampoa Ltd., which won control of ports at the Atlantic and Pacific sides of the Panama Canal under suspicious circumstances. ……. Dorn's other clients included the embassy of Azerbaijan and the government of the Islamic Republic of Pakistan. She also represented the AFL-CIO, which has made Hastert's political fall a priority issue this year. ….."

SMH 7/17/00 Bernard Lagan "…… The Federal Government yesterday left the way open for Australia's electronic spy bases to be used in the United States's proposed $60 billion missile defence shield that has raised international fears of a renewed arms race. Speaking after talks in Sydney yesterday with the US Defence Secretary, Mr William Cohen, the Minister for Defence, Mr Moore, said Australia would await a proposal for its involvement in the system if the US went ahead. "A decision to deploy [the US missile shield] is some distance down the road," Mr Moore said. "….."

Washington Times 7/18/00 Frank J. Gaffney, Jr. "…….What on Earth was he thinking? This is the question prompted by House Speaker Dennis Hastert's selection, announced last week, of a new national security adviser: Nancy P. Dorn, a woman who had parlayed her stints as an official in the Reagan and Bush administrations into a lucrative business as a registered foreign agent. ……… Not just any foreign agent. One of her troubling clients was, in the words of Insight magazine, which broke the story, "a division of a Communist Chinese company linked to Beijing's military intelligence." …….Specifically, Mrs. Dorn lobbied for Hutchison Port Holdings (HPH), a subsidiary of Hutchison Whampoa Ltd. which is, in turn, owned by Li Ka-shing - a Hong Kong-based billionaire who reportedly enjoys an extemely close relationship to the leadership in Beijing and its security services. ……."

Washington Times 7/18/00 Frank J. Gaffney, Jr. "……..So who did Li Ka-shing turn to in order to head off GOP efforts to reopen the bidding on the Panamanian ports in question and to limit other political fall-out - especially efforts that might have interfered with the plans he and his friends in Beijing had to expand Hutchison/ China's presence in the Bahamas and elsewhere in the hemisphere? Lobbyist Nancy Dorn. …….. It turns out Mrs. Dorn was also the "go-to" woman for one of China's leading clients, the military junta that seized power in Pakistan last year. Presumably, her assignment was to keep Republicans from making too much of a ruckus about the Clinton-Gore administration's systematic failure to fulfill legal obligations to sanction both countries over their cooperation in the proliferation of nuclear weapons and long-range missile technology. Whether thanks to her or others, that objective was largely achieved. ……..Perhaps Mrs. Dorn deserves credit as well for the lack of protests from the Republican congressional leadership earlier this year when Pakistan was curiously left off the State Department's list of state sponsors of terrorism. …….In a way, an even more interesting question would be why Mrs. Dorn saw fit to take a significant pay cut to assume a position that may cease to be Mr. Hastert's to fill half a year from now? ….."

LA Times 7/20/00 Kenneth Weiss ".....Breaking their silence for the first time, University of California leaders suggested Wednesday that federal officials who have loosened rules and slashed security budgets should share the blame for security violations at the nation's nuclear weapons laboratories. Although contrite for their part in security lapses at the labs, which UC manages for the government, university officials noted that cost-cutting pressure from Congress and the Energy Department have forced the labs over the years to scale back security measures--sometimes at the Energy Department's prompting. ....."

 

 

Insightmag.com 8/13/00 J Waller "……The U.S. intelligence officer who exposed China's theft of nuclear-weapons designs from U.S. government labs is being harassed by an agency that lets Beijing's agents roam free. When the FBI couldn't bust the Chinese spies stealing U.S. nuclear-weapons secrets, it went after the spycatcher who exposed them. Humiliated by its inability to crack what intelligence experts call the worst national-security breach in U.S. history, the FBI and other agencies are trying to grind down the man who discovered the espionage, informed Congress of the cover-up and warned the public. ...... The FBI went after that man, former Department of Energy, or DOE, intelligence official Notra Trulock, at the end of July, searching his home without showing a warrant and making off with the hard drive from his computer. They claimed to suspect that he improperly was keeping classified data. But insiders tell Insight they believe the FBI is trying to send Trulock to prison for exposing its failures. ……. FBI fumbling has let most, if not all, the Chinese spies remain at large. But the Bureau and the DOE - including the chief of the FBI's Chinese espionage investigation task force - now are out to get Trulock. "The national-security community has turned a blind eye to China," Trulock tells Insight. "I could never find a rational reason, but I always suspected money, and the federal bureaucracy has been so corrupted by the Clinton administration that bonuses and promotions go to those who adhere to the administration's line on China. The signal that they've sent to the system is chilling at best." ……… Other national-security experts agree. A senior FBI special agent tells Insight that "many in the Bureau have lost their moral backbone or never had it in the first place and tend to bend under political pressure to get promoted." He adds that "few in the FBI take counterintelligence seriously any more, preferring to focus on more visible problems like organized crime." ………"

Insightmag.com 8/13/00 J Waller "……But rather than act, the Clinton/Gore administration retaliated against Trulock. DOE demoted him shortly after he started speaking with the congressional oversight committees, then forced him out of government service in early 1999. He took a job in the private sector with TRW Inc., a large contractor with the Pentagon and DOE. But after Trulock wrote a "personal-reflections" article about his experiences - which included criticism of the administration, DOE, FBI and CIA for what he tells Insight was "their mishandling and cover-up of the Chinese spy threat, as well as the compromise of national security at U.S. nuclear-weapons laboratories" - the Clinton/Gore harassment got ugly. According to the official complaint filed in the lawsuit on his behalf by Judicial Watch, Trulock "took painstaking care not to include any classified information in the manuscript and, in March 2000, sent the document to DOE for a security review before trying to have it published. DOE declined to review the manuscript," and Trulock "submitted to, and passed, a polygraph examination intended to reveal any disclosure of classified information." In a July issue, National Review published excerpts from the Trulock manuscript as an article titled "Energy Loss." The FBI moved in on Trulock. TRW immediately fired him, according to the complaint, "under pressure from high-ranking officials at DOE." And that was just the beginning of what appears to be a typical Clinton/Gore campaign to destroy Trulock professionally, discredit him personally and ruin people around him. ……"

Insightmag.com 8/13/00 J Waller "……The complaint alleges she was told that "if she did not agree to cooperate," the FBI would "break down her front door to execute the warrant, that the media would be present and that the local police had already been alerted to the fact that the search was about to take place." "The media would be present" - proof that someone was orchestrating something much more than a standard federal investigation. And Insight has learned that the "Get-Trulock" operation had the highest-level coordination: Energy Secretary Bill Richardson, who saw his chance to be Gore's vice-presidential nominee shanghaied by the aftermath of Trulock's revelations, spoke with FBI Director Freeh about interrogating Conrad and searching her home. According to the complaint, White House Chief of Staff John Podesta even gave Sanchez a dressing down for having cooperated too closely with congressional investigations of Red Chinese espionage. Sanchez, in turn, pressured Conrad to cooperate with the FBI against her friend, Trulock. …….."

Insightmag.com 8/13/00 J Waller "……But who is directing the FBI to go after Trulock? FBI spokeswoman Debbie Weierman tells Insight that the Bureau is acting in consultation with Attorney General Janet Reno's Department of Justice. Security and intelligence experts blame the FBI for slashing its counterintelligence staff after the collapse of the Soviet Union. Post-Cold War laxity toward counterintelligence and security got so bad in 1997 that two retired FBI supervisory special agents founded the Centre for Counterintelligence and Security Studies to help train the government intelligence community in counterintelligence disciplines. …….. Some FBI veterans have criticized Freeh for placing too little emphasis on counterintelligence in favor of common crimes that produce arrests and convictions. Freeh made his name in the Bureau for fighting organized crime and drug-trafficking......."

Insightmag.com 8/13/00 J Waller "……Trulock, meanwhile, is struggling with the day-to-day problems of supporting his children while unemployed and building his legal defense. The warrantless seizure of his computer hard drive and other harassment have deprived Trulock of his ability to make a living and undermined his efforts to find appropriate medical attention for his handicapped son. ……Conrad's career is likewise a shambles. On the day Freeh's secretary confirmed receipt of the Judicial Watch letter asking for a conference, according to the lawsuit, Sanchez, Conrad's supervisor at DOE, told her "that he had tried to keep her out of this matter, but that, if she went forward with a lawsuit, he would deny telling her the FBI had told him it had a search warrant for her home." Sanchez also told plaintiff Conrad that "he would do this in order to protect 'the Bureau,' that she would be 'branded' forever, that he could not take her with him to his next assignment at the Central Intelligence Agency, and that her career would be ruined." ......"

UPI 8/19/00 "......Israeli police said Saturday that they will look for a U.S. Army Reserve officer who reportedly went AWOL from his unit in Texas and joined a lover in a town northeast of Tel Aviv. A U.S. Embassy spokesman in Tel Aviv said Lt. Col. Jeremiah Mattysse did not return from leave as scheduled on Aug. 8, and the Army declared him absent without leave. He also has been charged with desertion and conduct unbecoming an officer. "We have reason to believe he is in Israel and we have asked the Israeli government to help us return him to the U.S.," spokesman Larry Schwartz said. ....... A spokesman for the Israeli police confirmed that the United States had filed a request for help in locating for Mattysse. "We shall try to locate him," Ofer Sivan said, but declined to provide further information, including whether Mattysse is in Israel. ....... Later in the day, Nir said, Mattysse called her at a telephone booth in Kfar Sava that the couple had agreed on, saying he had crossed the border to Syria and was in Damascus. "He doesn't know what he is going to do," she said. A U.S. military attaché and two security guards arrived at the woman's home on Friday and took some papers, Nir said. She said that before coming to Israel, Mattysse had mailed classified intelligence documents that were later deposited in the safes of several Israeli banks under her name. ......"

Idaho Observer 8/11/00 L Horowitz "……. On April 30, 2000, the The Washington Post announced a National Security Agency (NSA) move to place AIDS science, and all public health agencies conducting it, under the command of the Central Intelligence Agency (CIA). This move, curiously, follows South African President's Thabo Mbeki's decision to include the testimonies of "dissident" scientists in his country's review of HIV/AIDS treatment practices and the epidemic's origin. President Clinton, advised by the National Intelligence Council (NIC), to formally declare global AIDS a U.S. "national security threat," signed this policy into law.. ……."

UPI NewsMax 8/17/00 ".....An officer who once commanded an Army Reserve intelligence unit that handled highly classified material has vanished, and the Army is scrambling to locate him. Radio station WOAI reported in a copyright story Wednesday that Lt. Col. Jeremiah Mattysse, the former commander of the Southwest Army Reserve Intelligence Support Center at Camp Bullis, was relieved of command in February pending an investigation. Mattysse refused to report for duty with the 90th Army Reserve Command at Fort Sam Houston. He was listed as absent without leave on Aug. 8, the radio station reported. Army officials confirmed to WOAI that Mattysse has been charged with desertion, being absent without leave and conduct unbecoming an officer. ....."

MSNBC 8/11/00 Bob Sullivan "…….Six months after devastating attacks took down the Web's biggest sites, MSNBC has learned of new evidence that indicates it could easily happen again: a security researcher has found 125,000 networks with the same flaw that allowed the attacks. In addition, MSNBC has learned that the White House, insurance companies and the security industry are considering quasi-government regulation to try to compel Internet firms to take basic security steps. ……. Top-level White House officials have been meeting with representatives of the insurance and security industries in an attempt to work out an agreement, according to Alan Paller, director of the SANS Institute, a non-profit computer security organization. Details of the plan are still under discussion, but Paller said it would mirror the strategy the federal government has used with other developing industries, such as electricity…….."

UPI 8/19/00 "...... Israeli police said Saturday that they will look for a U.S. Army Reserve officer who reportedly went AWOL from his unit in Texas and joined a lover in a town northeast of Tel Aviv.

A U.S. Embassy spokesman in Tel Aviv said Lt. Col. Jeremiah Mattysse did not return from leave as scheduled on Aug. 8, and the Army declared him absent without leave. He also has been charged with desertion and conduct unbecoming an officer. ......"We have reason to believe he is in Israel and we have asked the Israeli government to help us return him to the U.S.," spokesman Larry Schwartz said. ......A spokesman for the Israeli police confirmed that the United States had filed a request for help in locating for Mattysse. "We shall try to locate him," Ofer Sivan said, but declined to provide further information, including whether Mattysse is in Israel. ......Israeli police maintain a computerized record of all arrivals to and departures from the country. ........"

UPI 8/19/00 "......Rikki Nir, 48, of the town of Kfar Sava, was quoted by Israeli media as saying that she had met Mattysse in Texas. She reportedly is or was married to a U.S. Navy doctor. Nir told Israel Radio that a U.S. military court had ordered the officer not to approach or contact her. "He told me, 'Rikki, I love you so much and I so much want to be in Israel,'" she related. She said Mattysse had converted to Judaism, hid in her house and asked to resign from the Army, but he was not discharged. ....... In an account that seemed to mix the plausible with the fanciful, Nir said that Mattysse had stayed in Israel in a tent, hitched rides on trucks, avoided public transportation and disguised himself with a wig, a beard and a mustache that "he replaces all the time." ........ She said Mattysse left her home early Friday morning and was picked up by a white car with red license plates, which in Israel are assigned to police vehicles. Later in the day, Nir said, Mattysse called her at a telephone booth in Kfar Sava that the couple had agreed on, saying he had crossed the border to Syria and was in Damascus. ......"He doesn't know what he is going to do," she said. A U.S. military attaché and two security guards arrived at the woman's home on Friday and took some papers, Nir said. ........She said that before coming to Israel, Mattysse had mailed classified intelligence documents that were later deposited in the safes of several Israeli banks under her name. ....."

WorldNetDaily 8/19/00 J R Nyquist "……Mexico's top drug trafficking cartel, run by the Arellano Felix brothers in Tijuana, is working closely with the Chinese. According to Jamie Dettmer, writing in the August 23 issue of Insight magazine, ships arriving in Mexico from China may contain "more than illegal immigrants." The Chinese are pumping people and supplies into Mexico, and the cargo is considered so sensitive that it is "often under the apparent protection of Chinese and Mexican naval vessels." ……. American authorities are helpless, as usual, to block this strategic smuggling operation on our southwest border. America is helpless because President Clinton will not support improved border controls, and he won't get tough with the Mexican government. Clinton's immigration policy can be characterized as appeasement of the Mexicans, appeasement of the Chinese and a "who cares?" attitude. …… Setting aside the issue of dangerous drugs and illegal immigration, the reason we should worry about drug and alien smuggling into this country, and the reason that no effort should be spared in making our borders impenetrable, is because nuclear and biological weapons can be smuggled into the country by the same routes that illegal narcotics are smuggled. According to Colonel Stanislav Lunev, highest ranking defector from the Main Intelligence Directorate of the Russian General Staff, narcotics trafficking is a way of establishing secure pathways into the United States. If there is a hole in our border due to corruption by drug traffickers, that hole can be used to ship more than narcotics. It can be used to ship suitcase nuclear bombs. ......"

Washington Times 8/28/00 John McCaslin "….. As part of a program to improve security, the State Department since May has been giving security briefings to 7,000 employees. Are they warned to watch out for Russian spies planting bugs in conference rooms? Or keep their eyes open for thieves among private contractors, who could lift laptops with classified information? Nope. Instead, two State Department officials can't resist telling us that one of the main targets of the Bureau of Diplomatic Security briefings is Bill Gertz, a reporter for The Washington Times, and his recent best-selling book, "Betrayal: How the Clinton Administration Undermined American Security," a critical assessment of the Clinton administration's defense and national security policies. One briefer told employees "this is a bad book" because it contains an appendix with classified documents, published to bolster the author's argument. The briefer added to one audience: "Don't buy it, go to the library and get it."….."

Te Washington Times 8/28/00 Bill Gertz "……Twenty-five senior Chinese military officers are in Boston to learndetails about U.S. decision-making that critics say will help Chinafight the United States in a conflict over Taiwan. The People's Liberation Army (PLA) officers arrived Saturday. They include 24 senior colonels and one navy captain who will spend two weeks at Harvard University's John F. Kennedy School of Government, according to Clinton administration officials close to the program. The officers are there to hear lectures by current and former U.S. national security officials who have discussed how the United States would respond to a crisis over Taiwan. "Most of the officers are intelligence collectors or technology collectors," said one knowledgeable official……."

Jerusalem Post 8/22/00 Josh Wander "…… Jeremiah Mattysse, the so-called "convert spy", has left the country via an El Al flight bound for New York. According to official sources, Mattysse left of his own free will and police gave him a ride to the airport. But Attorney Yoram Sheftel, who is representing him at the request of "religious circles", thinks differently. "He was kidnapped by the police," Sheftel told The Jerusalem Post Internet Edition. He says that it makes no sense that 5-6 days after applying for Israeli citizenship, Mattysse would get up and leave the country willingly. ……."

Nando Times 8/21/00 Sue Leeman "…..A former British spy who insists he was right to leak intelligence information to the press returned home Monday after nearly three years on the run in France. David Shayler was arrested immediately. Police confronted Shayler as he stepped off a ferry at the southeastern English port of Dover after making a high-profile crossing from the French port of Calais accompanied by reporters, TV crews and his girlfriend, Annie Machon. ..."

Washington Post 8/21/00 AP "…..A U.S. Army Reserve officer in military intelligence who went AWOL from his base in San Antonio has been located in southern Israel, police said Monday. Authorities in Israel and the United States will review the case of Lt. Col. Jeremiah Mattysse, with his agreement, the police statement said, suggesting the U.S. officer is not in detention. Mattysse, who failed to report to duty Aug. 8 after a vacation, has submitted a request to immigrate to Israel, Israeli Interior Ministry officials said. A ministry spokeswoman said she did not know when the request was submitted. Rivka Artzi-Nir, a woman who lives in Israel and identified herself as Mattysse's girlfriend, has told Israeli newspapers he became devoted to helping Israel since converting to Judaism 10 years ago. ……"

http://www.janes.com/defence/news/jdw/jdw000822 8/22/00 Andrew Koch "…..Would-be proliferators are continuing their efforts to develop weapons of mass destruction (WMD) and insulate those programmes from external interference, according to a new US intelligence report. A biannual Central Intelligence Agency (CIA) report on global WMD acquisition says one of the trends in the latter half of 1999 was the emergence of potential new suppliers such as Iran and Pakistan. The report also noted that Russia "continued to supply various ballistic missile-related goods and technical know-how to countries such as Iran, India and Libya". Russian missile assistance to Iran was "substantial", despite "some positive steps to strengthen the legal basis for export controls". The problem, the report notes, is that "Russian export enforcement and prosecution still remains weak". The document said: "Iran remains one of the most active countries seeking to acquire WMD," adding that Tehran is developing the production capabilities for nuclear, chemical and biological weapons as well as long-range ballistic missiles. According to the report, "Tehran expanded its efforts to seek considerable dual-use biotechnical materials, equipment and expertise from abroad - primarily from entities in Russia and Western Europe" for its biological warfare programme. Tehran also continued to seek technology for its chemical weapons (CW) efforts from China and Russia. Chinese companies were said to have provided "increased assistance to Pakistan's ballistic missile programme", which also receives North Korean assistance. ……"

Washington Times 9/12/00 Bill Gertz "….. A Senate report made public yesterday charges that China has failed to fulfill promises to the United States not to sell nuclear and chemical weapons material and missile parts to rogue states. ``The People's Republic of China consistently fails to adhere to its nonproliferation commitments,'' the report by the majority staff of the Senate Foreign Relations Committee states. ``In many instances, Beijing merely mouths promises as a means of evading sanctions.''…….. The report outlines numerous instances of Chinese weapons sales to Iran, Libya, North Korea and other nations and discloses for the first time that China during July to October 1996 arranged the sale to Iran of missile-guidance packages, gyroscopes and steel used in building missiles. It details 42 cases of Chinese arms sales to rogue states, ranging from nuclear arms components sold to Pakistan in the 1980s, to Chinese missile technology transfers to Libya in June and July. The latter transfer was first reported by The Washington Times. ``The Clinton administration -- unlike its predecessors -- has shown nothing but consistent disregard for U.S. nonproliferation laws,'' the report said……."

http://Timmerman2000.com 7/24/00 Kenneth R. Timmerman "……When a Congressional commission, led by California Republican Christopher Cox and Washington state Democrat Norman Dicks, uncovered evidence that China had gained access to U.S. nuclear secrets through espionage, the Washington Post assigned a journalist whose wife was a Clinton administration appointee to cover the story. Walter Pincus and his wife Ann were frequent guests of the first couple at Camp David. After several years at the U.S. Information Agency, Ann Pincus was transferred in the late 1990s to the Office of Research and Media Reaction at the State Department's Bureau of Intelligence and Research (IN/R), the same office that "lost" a laptop computer loaded with highly classified intelligence documents in April 2000. In his reports for the Post, Walter Pincus consistently sought to debunk the China espionage allegations, insisting against all evidence that the Department of Energy's lead investigator was motivated by racism because he focused on a Taiwanese-born nuclear scientist.. ……"

Newsday.com 9/10/00 William Mann AP "……President Clinton is awaiting an administration recommendation on whether former Navy analyst Jonathan Pollard, imprisoned for spying for Israel, should receive clemency, Clinton's top aide said Sunday. Pollard, convicted in 1985, is serving a life term at a federal prison in Butner, N.C., for providing Israel with thousands of highly classified documents. Asked on ''Fox News Sunday'' whether the Pollard case is ''actively under review,'' White House chief of staff John Podesta said: ''I don't think there's anything in the offing there, but, you know, it remains under review in the administration.'' The case is highly charged within the U.S. intelligence establishment. Israeli-Palestinian peace talks at a Maryland retreat in October 1998 almost foundered when former Israeli Prime Minister Benjamin Netanyahu said Clinton broke a promise to let Pollard go to Israel with Netanyahu. ……Clinton said he had promised only to review the case. During deliberations on clemency, CIA Director George Tenet had told Clinton he would quit if Pollard were freed. ……."

AFP 9/1/00 "……The United States on Thursday stepped up pressure on Russia to release an American detained in Moscow on espionage charges, threatening to issue a formal travel warning for the country. State Department spokesman Richard Boucher said the case of Edmund Pope, whose wife and other visitors say is in deteriorating health, raised serious questions about Russia's commitment to safeguarding those in its custody. "We're examining the implications of this for other Americans, business people who might travel to Russia, and we are looking at the consular information that we provide," Boucher said. ….."

Austin American Statesman/New York Times 9/1/00 "…… The defense has said the fact that Lee was born in Taiwan, a strident enemy of the People's Republic of China, had been ignored. The affidavits released Thursday go further, though, by providing details of serious espionage cases in which admitted spies apparently escaped criminal prosecution altogether. One affidavit was provided by Robert Vrooman, the former head of counterintelligence at the Los Alamos National Laboratory, where Lee worked. Vrooman has since retired from Los Alamos and was reprimanded for not pursuing Lee more vigorously. The second affidavit was by Charles E. Washington, the former acting head of counterintelligence at the Department of Energy. ……"

Toronto Star 9/4/00 Allan Thompson Valrie Lawton "…..RCMP officers have travelled across North America to interview former Israeli spies, a convicted drug dealer, financiers and conspiracy theorists, probing claims that foreign agents used rigged software to hack into secret Canadian computer files. The Mounties are tight-lipped about their mysterious investigation, code-named ``Project Abbreviation,'' and will confirm only that they're looking into an alleged breach of national security. But information obtained by The Star indicates that RCMP officers have waded into the mire of a tangled conspiracy theory. ``They have opened a Pandora's box,'' said one player in the intelligence community familiar with the investigation. ……. The Star first revealed on Aug. 25 that the RCMP's national security section is probing claims the computer software program known as Promis was sold to the RCMP and CSIS in the early 1980s, and then used by U.S. and Israeli agents to eavesdrop on Canada. ……."

Washington Times 8/29/00 Jerry Seper "…..Justice Department lawyers yesterday confirmed that prosecutor Paul Coffey, a veteran organized crime prosecutor pulled out of retirement by Attorney General Janet Reno to conduct the Deutch inquiry, has told colleagues that charges in the case are warranted. A written recommendation is expected to be sent shortly to Miss Reno, who has the final say on whether charges will be sought in the case. Justice Department spokeswoman Chris Watney yesterday declined comment on the probe. The Justice Department began a preliminary review of Mr. Deutch's suspected misuse of highly classified intelligence and defense documents on his unprotected home computers in February. Miss Reno said at the time the department was "reviewing the whole matter, to see whether there is any basis for further action."……."

Reuters 8/25/00 "……Canadian police are investigating whether U.S. and Israeli spies used rigged computer software to hack into Canada's top secret intelligence files, the Toronto Star newspaper said Friday. The paper said the probe revolved around Promis, a software program first developed to assist prosecutors in the United States Department of Justice which was the centre of a U.S. scandal a decade ago. The Star said police were probing whether the software -- used by the Mounties and Canada's spy service to co-ordinate secret investigations -- had been rigged with a so-called "trap door" allowing unauthorized access to sensitive data. "That could include economic intelligence on trading partners, detailed information on the whereabouts of terrorism suspects in Canada or strategic information on the positions Canada intends to take in international relations," it said. ……"

The Toronto Star 8/27/00 Valerie Lawton "…… Bill Hamilton has spent the last decade telling a bizarre story about spies, computer software and conspiracies. The Inslaw story can spiral into an octopus of other odd- sounding conspiracy theories and allegations. Now he hopes Canada's Mounties will prove his tale is actually true. "It's the first time that there has been the possibility of a credible criminal investigation of this," Hamilton, owner of the tiny, Washington- based Inslaw Inc. software company, said yesterday in an interview. The Star revealed last week that the RCMP are investigating the possibility foreign spies used doctored software to hack into highly sensitive intelligence files. The Mounties have since confirmed they are looking into a possible breach of national security. Hamilton's stranger-than-fiction story - in brief - is the following: ……….
He sold software he'd developed to the United States justice department in the early '80s. The software, called Promis, was used by prosecutors to keep track of their cases.
Not long afterwards, the justice department stopped making payments on the $10-million contract.
Hamilton alleges the U.S. government stole the software, then - along with the Israelis - sold pirated versions to intelligence agencies around the world.
He also believes those stolen versions were equipped with a hidden "trap door" that allowed spies to peek into top-secret databases and download any information they wanted.
The U.S. justice department has suggested the claims are fantasy.
From this point, the Inslaw story can spiral into an octopus of other odd- sounding conspiracy theories and allegations. ………"

Reuters/Yahoo 9/7/00 Elaine Lies "……A senior Japanese naval officer was arrested on Friday on suspicion of passing military secrets to a person believed to be a Russian embassy employee, prompting doubts about Japan's military security practices. The incident came just days after a visit by Russian President Vladimir Putin failed to resolve a territorial row that is keeping Tokyo and Moscow from signing a peace treaty formally ending World War Two and could affect ties between the two. Shigehiro Hagisaki, a 38-year-old lieutenant commander in the Maritime Self Defense Forces who is currently posted at a defense research institute, was arrested for allegedly giving classified information to the Russian embassy employee, a police spokesman said. Police also raided four locations, including the institute and Hagisaki's apartment. ….."

Yahoo News 9/11/00 "…….Lax computer security poses a growing threat to a wide range of critical U.S. government operations and property, congressional investigators reported on Monday. Security lapses at all 24 federal agencies reviewed ``place a broad array of federal operations and assets at risk of fraud, misuse and disruption,'' said the General Accounting Office (GAO), the non-partisan investigative arm of Congress. Government officials are increasingly concerned about potential cyber attacks motivated by everything from juvenile mischievousness to intelligence gathering, crime and sabotage, the survey said. As authorities rely more and more on networked computers, ''there is a greater likelihood that information attacks will threaten vital national interests,'' GAO added. Each of the 24 audited agencies were faulted for ``serious weaknesses'' in controls on access to their systems, up from 23 in September 1998, when the last such GAO audit was released. ……..Data gathered in the past year show that federal computer security is ``fraught with weaknesses and that, as a result, critical operations and assets continue to be at risk,'' it said. ……"

Judicial Watch 9/11/00 "……Today, Attorney General Janet Reno, on behalf of the Clinton-Gore Administration, will "happily" enter into a plea agreement with Wen Ho Lee - the individual who still cannot fully account for classified information which he removed from the Los Alamos Nuclear Laboratories - by allowing him to plea to one felony count with no additional jail time………. This outrage effectively seeks to exonerate the Clinton-Gore Administration itself of gross negligence and/or complicity in the massive security breach at the Los Alamos Nuclear Labs. In addition, it will clear the way to reach a similar watered-down plea agreement with John Deutsch, the former head of the CIA and an individual who sits on the Board of Directors of Investigative Group International, Inc., Terry Lenzner's private investigation firm, who has been accused of similar wrongdoing. Many people thought that Deutsch was now being prosecuted because it would not contrast well with Wen Ho Lee, who claimed outrageously that he was being singled out for racial reasons……. "Both Mr. Deutsch and Mr. Wen Ho Lee should have "the book" thrown at them. This is not an issue of race. It is an issue of national security. Thanks to her bungled investigation, Attorney General Reno had a self-made excuse to again let individuals in the Chinagate scandal go free. This is a national disgrace, which Judicial Watch will not stand by and watch," stated Judicial Watch Chairman and General Counsel Larry Klayman…… ….."

New York Times 9/12/00 David Johnston "……An investigation that began eight years ago as an effort to determine how China obtained highly classified information from American weapons labs about one of the country's most advanced nuclear warheads appears to be back where it started, with the mystery still unsolved. Although Wen Ho Lee, a nuclear weapons scientist in New Mexico, became the government's leading suspect in the investigation of the alleged theft of warhead data, he was never charged with espionage or accused of any crime connected with the loss of information for a device known as the W-88. Nor did the government ever obtain any direct evidence linking Mr. Lee to the suspected theft…….. Government officials said today that they were prepared to accept a plea bargain in which Mr. Lee would plead guilty to a single count of improperly downloading secret information. The material Mr. Lee downloaded was unrelated to the suspected warhead design theft that prompted the government's investigation of possible Chinese espionage……… The agreement effectively means that prosecutors have ended their long pursuit of Mr. Lee as a possible source of the stolen warhead data, once described by government experts as "the crown jewels" of the United States' nuclear secrets. It also leaves them with no clear answer about how the Chinese obtained the warhead data or from whom……."

New York Times 9/12/00 David Johnston "…… What remains of the inquiry is an investigation into whether there exists another explanation or different suspect for the loss of the W-88 technology, which began with a government effort to pinpoint the source of the leak. The new inquiry included looking for any possible clues and textual "finger prints" on a Chinese document that the C.I.A. got in 1995 and had long resided at the heart of the spy case. It has previously been reported that its Chinese text cited five key attributes of the W-88 warhead, including two measurements accurate to within four-hundredths of an inch. That information was a strong indicator that the Chinese had obtained national secrets…….. But last year, the experts said, a federal panel made up of people from the Central Intelligence Agency, the Defense Intelligence Agency, the State Department and the Energy Department and its weapons laboratories was surprised to learn that such secret information on the W-88 had been distributed widely beyond Los Alamos, intelligence experts said……. Copies of one detailed description of the warhead were distributed to 548 addresses, including ones in the Defense Department, the military services, the National Guard, and federal agencies and contractors like the Lockheed Missile and Space Corporation. As a result, the lost secrets, it appeared, were available to thousands of individuals scattered throughout the nation's arms complex and thus available from myriad sources…….."

Insight Magazine 9/12/00 Jamie Dettmer "…..The Justice Department's inspector general sent to Capitol Hill today a damning 400-page report that accuses former and current senior Justice officials - including a onetime favorite of attorney general Janet Reno - of "egregious misconduct," lax handling of highly classified intelligence documents and visa fraud. …….. The report, the result of a nearly three-year-long probe into justice programs tasked with the training of foreign police officers and prosecutors, is already making waves on the Hill and is likely to be the subject of a full hearing by the House Judiciary Committee later this month. ………. The United States Attorney for the District of Columbia apparently declined prosecution notwithstanding such a recommendation from the IG, Insight sources say. ……. Those targetted by the IG probe include the former head of the international programs, Robert Bratt, who the IG says in the report committed visa fraud when he attempted to secure U.S. entry for two Russian women he met in Moscow. …….. The probe into the International Criminal Investigative Training Assistance Program, or ICITAP, and the Office of Prosecutorial Development and Training, or OPDAT, was launched in the spring of 1997 and was first reported by Insight. Justice chiefs tried initially to keep the inquiry under wraps and, according to sources close to the probe, have in the last few months attempted to coax the IG's office into weakening the report, which is described by a congressional aide as "excoriating." ……"

Insight Magazine 9/12/00 Jamie Dettmer "…..The probe was sparked initially when the Justice Department's head of security, Jerry Rubino, was informed by a whistle-blower about serious security breaches within ICITAP. The whistle-blower, Martin Andersen, claimed that the then executive officer Bratt and his subordinates, Janice Stromsem, Joe Lake and Carey Hoover, consistently mishandled top secret in-country reports and cables from the DEA, CIA and other U.S. intelligence and law-enforcement agencies. He alleged that the documents, many of which contained details of intelligence sources, were left unsecured and their contents shared frequently with ICITAP contractors who had not undergone security clearances. IG investigators launched a massive security sweep as allegations of other wrongdoing and bizarre mismanagement by Bratt and his deputies multiplied. More than 200 people were interviewed and the files on more than 1,000 ICITAP and OPDAT sub-contractors and consultants were reviewed. …..A Justice source admitted as the probe widened that the IG was uncovering "general moral turpitude" in the running of the programs. IG agents encountered claims of sexual harassment and heterosexual and homosexual favoritism in the hiring of staff and contractors, including the employing of a waitress from a local Washington DC disco who caught the eye of a senior ICITAP official. ……"

Insight Magazine 9/12/00 Jamie Dettmer "…..Further Bratt, who recently retired from Justice and now works as a consultant at Science Applications International Corp (SAIC), was found also by investigators to have given false statements during interviews by IG agents. ……. The report is bound to prove personally embarrassing for Attorney General Reno. Justice sources say that Bratt was a "Reno blue-eyed boy" and as a result the attorney general long ignored allegations of wrongdoing at ICITAP and OPDAT, even when FBI agents tipped off her office about major problems in the management of the international law enforcement programs. When the IG probe was first launched Reno still gave Bratt the benefit of the doubt, the sources say. As allegations tumbled out from ICITAP and OPDAT, she selected Bratt to straighten out the Immigration and Naturalization Service. The IG's report makes clear that there was a failure of oversight by Bratt's superiors, and investigators also found security breaches in the Criminal Division - including lax security in the office of the then deputy assistant attorney general Mark Richard. …….. Richard, who along with Public Integrity Section chief Lee Radek led the high-profile inquiry into 1996 campaign-finance abuses by the White House, was also investigated by the IG for approving ethically dubious ICITAP contracts awarded to former Justice officials, including to JoAnn Harris shortly after she retired from her post as assistant attorney general. ….."

CBSNEWS 9/16/00 "…….Wen Ho Lee is still making news, despite his release Wednesday by a federal judge who blasted the government for its treatment of the Los Alamos nuclear research scientist. …… Energy Secretary Bill Richardson, in an interview with CBS News 60 Minutes, says there will be more information coming out about Lee. "The issue is not over. There are some very serious additional problems that Dr. Lee has," Richardson told Mike Wallace. …….. On Thursday, in a rare public rebuke of the operations of the Justice and Energy departments, Mr. Clinton said he was "quite troubled" by the way the case was handled. Just hours before, Reno refused to apologize for the case, saying the Justice Department and FBI "made the best decision we could based on the evidence and the law and I feel very comfortable with that." Reno said Lee, who spent nine months in solitary confinement, could have ended his ordeal sooner if he had cooperated. ……… In addition to the possible discussion with the president, Reno will have to answer questions about the probe from a Senate panel that plans hearings on the matter. …… "

9/15/00 Nelson Chung (CNA) US Sen. Richard C. Shelby (R-Ala.), chairman of the Senate Intelligence Committee, is working on legislation that would require more "unbiased" intelligence studies of Communist China because, he said, Communist China will be the United States' most important future challenge. The senator told The Washington Times in an interview Thursday that US intelligence agencies have a benign view of Communist China and need more "alternative" analysis of Beijing. "What we're interested in is good analysis; the nation depends on it," Shelby said, adding that the analysis has to be accurate and unbiased. ...... The conservative newspaper reported that some Pentagon officials also said the current US analysis on Communist China is "flawed." One official said the incumbent and former directors of the National Intelligence Council, John Gannon and Joseph Nye, have "refused to bring balance into the analysis review process." Sen. Shelby said that although it is helpful to require the CIA to approach its analytical reviews from two or three competing viewpoints, the bureaucracy may not like the suggestion. ...... But he emphasized that it is very important to get the analysis on Communist China correct because policy decisions made now will influence whether the United States will be prepared to meet the future challenge of the Communist regime. ......."

New York Post 9/17/00 Rod Dreher "…….THE federal government's bungling has made a martyr out of Wen Ho Lee, who now appears to many people to have been the victim of racial profiling. As a result, we are about to enter a dangerous period of American public life, when national security could be imperiled by a politically correct backlash. …… Whether or not Lee was unfairly prosecuted because of his ethnic background, the fact remains that China is engaged in a massive effort to recruit men and women like him as intelligence agents. …..Put another way, the Chinese communists themselves engage in racial profiling against Chinese-Americans - just as the KGB did with Russian-born Americans, and the Nazis did with Americans of German descent. "They do it all over the world," says James Lilley, an ex-CIA official and former U.S. ambassador to China. "They target these people and use them for obvious reasons. It's the language, it's the culture, it's the vulnerability." ………Nicholas Eftimiades, the Defense Intelligence Agency senior intelligence officer whose 1994 book "Chinese Intelligence Operations" is the standard reference work on the subject, says there is no question Beijing focuses on overseas Chinese as potential intelligence assets. ……."

AP 9/16/00 "……Defense Department documents allege that Deutch used unsecured computers at home and his America Online account to access classified defense information in the early to mid-1990s when he held high-ranking jobs at the Pentagon, the Post said in Saturday's issue. …… ''We find his conduct in this regard particularly egregious in light of existing DOD policy directives addressing the safeguarding of classified information,'' the Post quoted an internal Defense Department memo as saying. ''This situation was exacerbated because Dr. Deutch, while serving as the (deputy secretary of defense), declined departmental requests that he allow security systems to be installed in his residence. ''The evidence we obtained clearly establishes that Dr. Deutch failed to follow even the most basic security precautions.'' ……''This is now a pattern,'' Grassley was quoted as saying. ''Evidently, Mr. Deutch is a congenital downloader of classified information.'' ...... "

 

TBO.com 9/20/00 John Solomon "……Shortly before finalizing a plea bargain with Wen Ho Lee, the government learned that he had created a duplicate set of the original computer tapes he made containing nuclear secrets, officials said. The FBI informed Congress this week that the disclosure of the copies brings to 20 the number of tapes Lee is suspected of creating with U.S. nuclear secrets he downloaded from secure Energy Department computers, the officials said, speaking on condition of anonymity. ……. Lee has agreed to tell the FBI what happened to the 17 tapes - seven originals and 10 copies - that have not been accounted for, the officials said. Three tapes were found in Lee's office at the Los Alamos, N.M., nuclear weapons lab earlier in the investigation. ……"

Jamie McIntyre 10/10/00 CNN "……Former CIA Director John Deutch has refused to answer Pentagon investigators' questions about an undetermined number of computer floppy disks that may have contained classified information, the Pentagon said Tuesday. ……. The existence of the unaccounted-for disks was discovered during an ongoing Pentagon inspector general's investigation of Deutch's handling of classified material during his time at the Pentagon. ......... Pentagon spokesman Rear Adm. Craig Quigley said Tuesday that Deutch was observed by co-workers making copies of computer files on 3 1/2 inch floppy disks during his tenure as Deputy Defense Secretary, but that investigators have been unable to determine what happened to the disks. ……..Quigley said that Deutch was refusing to cooperate with investigators on the advice of his counsel. "He has not volunteered the information on the floppies, and he has declined to answer questions from us on their whereabouts," Quigley said. ……."

The Washington Post 10/9/00 John Solomon AP "…….Pentagon investigators have been unable to locate computer diskettes that ex-CIA Director John Deutch used to store a journal when working at the Defense Department, officials say. The journal contained classified information. Deutch has declined to be interviewed about the whereabouts of the disks, created during his tenure as deputy defense secretary in the mid-1990s, officials said. "There's no way to tell what their ultimate disposition might have been without talking to Dr. Deutch, and he has declined requests for our investigators to talk with him on this or other topics," Rear Adm. Craig Quigley, a Pentagon spokesman, said. The investigation of the missing diskettes comes after CIA officials already concluded that Deutch improperly recorded government secrets in a private journal about his government experiences. He stored the journal on electronic storage cards during his tenure as head of the spy agency. While the storage cards he used at CIA have been recovered, the Pentagon was unable to locate the diskettes Deutch created during his Defense Department days, when he began the journal, officials said Monday. ….."

Washington Times 10/10/00 "....... Congress will vote this week on legislation to criminalize whistle-blowing by government employees. If approved, this legislation would severely curtail the public's access to information which is embarrassing to government officials and important for Americans to know........... Already, U.S. law prohibits government employees from leaking information that would compromise national security, reveal covert agents, aid foreign governments or disclose cryptographic information. If Congress passes a provision included in the Senate Intelligence Authorization Act of 2001, government officials could face three years in jail and a fine of up to $10,000 for leaking classified information. Since the government marks even the most arcane materials classified, this legislation would give government broad ability to prevent all kinds of information from reaching the public. Government employees would clearly be less inclined to leak classified documents to reporters if threatened with jail time. The legislation further infringes on the First Amendment right to free expression. ....... The Senate recently passed the legislation and the Justice Department has endorsed it. The House hasn't yet voted on the legislation passed in the Senate and will be reviewing it this week in the House-Senate conference........"

Washington Times 10/11/00 Barry Schweid "…….Martin Indyk, the U.S. ambassador to Israel, has had his security clearance reinstated, allowing him to rejoin U.S. peacemaking efforts in the Middle East…….Secretary of State Madeleine K. Albright took the action for "compelling national security interests" even while an investigation of security violations continues, State Department spokesman Philip Reeker said last night………. Mrs. Albright had authorized suspending Mr. Indyk's clearance three weeks ago, a move that closed a critical channel to Israeli Prime Minister Ehud Barak in the midst of difficult negotiations…….The security violation of which Mr. Indyk is accused involved the use of an unclassified, government-owned laptop computer to prepare while-in-transit memorandums about discussions with foreign leaders, said a source outside the State Department who was familiar with the investigation......."

Associated Press 10/9/00 John Solomon "…… Pentagon investigators have been unable to locate computer diskettes that ex-CIA Director John Deutch used to store a journal when working at the Defense Department, officials say. The journal contained classified information. Deutch has declined to be interviewed about the whereabouts of the disks, created during his tenure as deputy defense secretary in the mid-1990s, officials said. …….. The investigation of the missing diskettes comes after CIA officials already concluded that Deutch improperly recorded government secrets in a private journal about his government experiences. He stored the journal on electronic storage cards during his tenure as head of the spy agency. ……. While the storage cards he used at CIA have been recovered, the Pentagon was unable to locate the diskettes Deutch created during his Defense Department days, when he began the journal, officials said Monday. ……."

10/6/00 Jonathan Broder "…….These are difficult days for U.S. Ambassador Martin Indyk, once one of the Clinton administration's diplomatic superstars. And they are about to become equally harsh for anyone else suspected of playing fast and loose with the rules on diplomatic security. ……. Indyk, the high-profile ambassador to Israel and one of the key players in President Clinton's Middle East peace process efforts, is now under FBI criminal investigation for what U.S. officials are calling his "flagrant, constant and serious" mishandling of classified materials over the past five years. The investigation comes after Indyk was abruptly stripped of his security clearance last month on direct orders from his boss, Secretary of State Madeleine Albright. ……… Indyk is alleged to have taken classified materials home with him without observing proper security procedures. According to U.S. officials, he also typed up classified reports on an unclassified laptop, then e-mailed the reports to himself, risking interception by computer hackers. Indyk is also said to have conducted sensitive diplomatic conversations on his car cell phone that could have been overheard by his Israeli driver or intercepted by Israeli intelligence. State Department sources say Indyk had been warned on numerous occasions to follow security regulations but continued to flout them. …….."

Washington Weekly 10/2/00 Rep. Weldon, House of Representatives "………Mr. Speaker, I have had the pleasure of serving in this body for 14 years. And during the 14 years, one of the things that I have learned about our colleagues is that we all have a feeling of high regard for each other. If someone is going to say something about another Member, the protocol usually has been that the Member be told about it in advance. …….

This past Thursday that did not happen, as the gentleman from California (Mr. Waxman) got up after everyone left Washington, late Thursday, and did a special order for 1 hour; a tirade mentioning a number of Members of Congress. Now, I will not do to him what he did to our colleagues. He only mentioned me briefly, but I told the gentleman from California (Mr. Waxman) this morning that I would come here personally and respond to the things he said regarding me.

The gentleman from California (Mr. Waxman) said that we were too harsh in criticizing the administration for the possibility of having the administration transfer technology to China in return for campaign dollars. He went on to make two specific charges: number one, that the Cox Committee, which I served on, in fact totally exonerated the administration on those allegations; and, number two, that the Justice Department said there was no reason to believe there was any need to further investigate the transfer of campaign dollars for technology to China.

Well, let us look at the facts, Mr. Speaker. The fact is that this gentleman, the largest single contributor in the history of American politics, Mr. Bernard Schwartz, from 1995 to 2000, contributed personally $2,255,000 to Democratic national candidates, DNC, the Democratic Senatorial Committee and the Democratic Congressional Committee.

The allegation was in 1998 when he contributed $655,000 to those candidates that there was a potential quid pro quo because Bernard Schwartz had been lobbying for a permit waiver to transfer satellite technology to China.

Now, the Justice Department has said on the record they opposed that the President intervene to a make a waiver decision, but the President went ahead on his own.

Now, in fact, our Cox committee did not even look at this issue. In fact, if the gentleman from California (Mr. Waxman) would have bothered to read the Cox committee report, in the appendix under the scope of the investigation it says, we did not even consider the political contribution aspect of this because other committees were looking at it and because we could not get people to testify because they pled the fifth amendment or they left the country.

But let us look at what the Justice Department said. Here is what the Justice Department said in the LaBella memo, which I would encourage our colleague, the gentleman from California (Mr. Waxman), and every citizen in America to request from their Member of Congress:

'It is not a leap to conclude that having been the beneficiary of Schwartz's generosity in connection with the media campaign, the administration would do anything to help Bernie Schwartz and Loral if the need arose.'

This was written not by a Republican. This was written by Charles LaBella, Justice Department special investigator to Louis Freeh, which went to Janet Reno.

They further said this, Mr. Speaker: 'As suggested throughout this memo, there are many as yet unanswered questions. However, the information suggests these questions are more than sufficient to commence a criminal investigation.'

Who would that criminal investigation have been against? It would have been against four people: Bill Clinton , Hillary Clinton , Al Gore, and Harold Ickes, who is Hillary's campaign manager in New York. It would have been against the Loral Corporation and Bernard Schwartz.

So here we have it, Mr. Speaker. The two allegations made by the gentleman from California (Mr. Waxman) are totally false. He owes an apology to the American people. Because, number one, the Cox Committee never looked at these facts. And he should know that unless he cannot read very well. It is right here in the text. Number two, he claims the Justice Department dismissed these allegations out of hand.

Well, I trust the American people. I would urge all of our colleagues to have this report available to every constituent across America, the LaBella memo. It is 94 pages. It is redacted, but they can read for themselves and they can see what this Justice Department, what FBI Director Louis Freeh, what handpicked Janet Reno Investigator Charles LaBella said about the need for a criminal investigation.

They name the four people in this document, and the four people are those four I mentioned along with Bernard Schwartz and the possibility of a quid pro quo for the $655,000 and all this money being transferred.

In fact, Mr. Speaker, when I get more time, I will go through the specific findings in the LaBella memo where they raised the issue of the request coming in to the President and specifically on February 18, 1998, the President signed the waiver after the Justice Department advised him not to sign it.

On January 21 of that same year, Schwartz donated $30,000 to the DNC. On March 2 he donated $25,000. All through that year, he donated $655,000 dollars. And that is why Louis Freeh and that is why Charles LaBella said there needs to be a further investigation for criminal activities involving the transfer of campaign dollars to the Democratic party, to the President and the Vice President and the First Lady and Harold Ickes based on the technology transfer to China, especially through the waiver that Bernie Schwartz got even though the Justice Department advised the President not to grant that waiver.

Mr. Speaker, the gentleman from California (Mr. Waxman) owes this Congress an apology.

New York Times 10/7/00 James Sterngold "……..Three and a half weeks after the former Los Alamos scientist Wen Ho Lee entered a plea agreement that the government said would resolve urgent issues of national security, the government has not yet scheduled a meeting with Dr. Lee. Prosecutors want to know why Dr. Lee downloaded a trove of nuclear weapons secrets and what happened to seven missing computer tapes packed with information. But despite the government's insistence on the urgency of these questions - the lead prosecutor, George Stamboulidis, had said hundreds of millions of lives hung in the balance - the prosecutors canceled their first appointment to debrief Dr. Lee and have not spoken with his lawyers about scheduling another one………"

http://www.worldnetdaily.com/bluesky_smith/20000927_xcsof_the_secret.shtml Charles Smith WorldNetDaily ".........The Sockowitz files include secret reports on cryptography from the NSA, a secret report on Russia from the CIA, secret cables from France, secret documents on U.S.-Russian space launches, even materials on U.S. efforts to purchase weapon's grade uranium from Russia. Sockowitz also had the complete biographies on foreign political leaders in Bosnia, Croatia, India, Turkey, and Russia. The CIA deemed the material so secret that it tried to seize Sockowitz's files as soon as it learned what had happened. ............ The Sockowitz files were discovered only after an anonymous tip to the public-interest group Judicial Watch in October 1996. Judicial Watch then deposed Sockowitz, a former New York state administrative law judge. Sockowitz testified that he was an "advance person" for the 1992 Clinton-Gore campaign. He was put on the 1993 inaugural committee at the request of vice president AI Gore's office. ...... Gore's office also approved that Sockowitz be appointed as a Commerce Department special general counsel in November 1993. At the Commerce Department, Sockowitz worked with John Huang "vetting" companies that wished to travel with Ron Brown on trade trips. ........ ........ Despite the security breach, the Reno Justice Department and FBI Director Freeh decided there is no case against Sockowitz. The Commerce Department's inspector general also decided against a probe. Sockowitz claimed his reasons for taking the files were innocent and his claims were taken without question. No federal law enforcement official has ever questioned Ira Sockowitz. ......."

Washington Times 10/6/00 Paul Weyrich "........ We recently saw another bizarre twist in the Chinese nuclear espionage story. Just two weeks after President Clinton left his attorney general and FBI director twisting in the wind by publicly questioning their handling of the Wen Ho Lee case, Janet Reno and Louis Freeh were on Capitol Hill vigorously defending their actions. Both refused to apologize for their handling of Lee, and continued to accuse him of removing nuclear secrets from Los Alamos National Laboratory. Mr. Lee's take, according to their joint statement, included the "complete nuclear weapons design capability of Los Alamos at the time - approximately 50 years worth of nuclear weapons development, at the expense of hundreds of billions of dollars." ...........

Washington Times 10/6/00 Paul Weyrich "........ Just a few weeks ago, doubt had been cast on the sensitivity of this material by one of the most experienced nuclear experts in the country during a bail hearing for Lee. John Richter, a Los Alamos scientist testified that 99 percent of the material Lee loaded onto unclassified computer tapes was already publicly available. Mr. Richter's testimony, along with admissions of the FBI's misleading testimony to federal Judge Parker, is credited with unraveling the government's case against Lee. .......Incredibly, Mr. Richter reversed himself and proclaimed that he was only referring to the computer software and basic principles of physics. Lee's tapes also included, according to Mr. Richter, data representing "the design knowledge and physics information developed by our nuclear labs over a period of 50 years and over 1,000 nuclear tests." He forgot to add - at a cost of billions of taxpayer dollars........ We also learned that Lee made additional copies of the tapes and that the total of tapes now unaccounted for is 17, not seven, as previously reported........"

Washington Times 10/6/00 Paul Weyrich "........First, it is evident, once again, that the administration is just not interested in getting to the bottom of what Paul Redmond, the renowned CIA spy-catcher, has labeled a bigger espionage case than either the Rosenbergs or Aldrich Ames. Five years on, the administration has yet to dig deeply into just how or where the Chinese acquired the classified nuclear weapons information described in the Cox Report. The FBI's "investigation" has been restarted once, and is now rumored to be restarting yet again. Maybe this administration just doesn't want to know what happened. The administration walked away from the Wen Ho Lee prosecution with breathtaking speed. ........... "

Reuters/Variety David Horowitz 10/3/00 "…….. Is Wen Ho Lee guilty? Wen Ho Lee illegally removed 400,000 files from the nation's top nuclear weapons lab during a period of years when he had repeated contacts with Chinese government scientists and at a time when the Chinese Communist dictatorship was systematically stealing the secrets of America's most sophisticated nuclear arsenal. His response to the FBI investigation was that of a seemingly guilty man. He destroyed files in his possession and repeatedly tried to break into the lab after his access was denied. Yet, Wen Ho Lee has acquired an almost martyr-like status as a victim of government persecution, and even of government "racism." ……Begin with Clinton's peculiar apology (without explanation) for a prosecution he himself was responsible for. The U.S. Attorney who handled the Lee case is Clinton's friend and former college roommate. Within a week of Clinton's apology, he was in New Mexico to raise money for the same prosecutor's run for a state office. The argument of some of Lee's supporters that an anti-Chinese bias was behind an intemperate Justice Department prosecution is hard to square with the fact that the current Deputy Attorney General in charge of civil rights is Chinese himself..........

Reuters/Variety David Horowitz 10/3/00 "…….. Columnist William Safire and others have suggested a more plausible explanation. The zealous pursuit of Lee followed the release of the bi-partisan Cox report detailing the theft of America's nuclear arsenal by the Chinese government. Much of this theft took place during Clinton's watch. Moreover, the Clinton Administration had been aggressive in lifting security controls on satellite, missile and computer technologies particularly instrumental in developing nuclear-tipped ballistic weaponry. The Clinton Administration had then sold those technologies to the Chinese. The Cox Report had come on the heels of congressional investigations by government oversight committees into the unprecedented access given by the Clinton-Gore Administration to Chinese military and intelligence officials and their agents, possibly in exchange for illegal contributions to the Democratic National Committee and the Clinton-Gore campaign. Senator Fred Thompson had opened his hearings with the charge -- based on CIA testimony -- that the Chinese government had systematically set out to influence the presidential elections of 1996, which put Clinton and Gore in the White House. More than a hundred witnesses called to testify about these facts took the Fifth Amendment or fled the country. Finally, among the charges leveled at the Clinton-Gore team was that the Administration routinely authorized electronic surveillance of U.S. citizens (some seven hundred wire taps were approved) but that the Administration had turned down the FBI's request for a tap on Wen Ho Lee. In fact, this was virtually the only tap the Clinton Justice Department refused………. In sum, the zealous prosecution of Wen Ho Lee, according to this theory, took place only after a period of endless foot-dragging and dangerous laxity on security issues, followed by the sensational revelations of the Cox Report. At this juncture, Clinton's personal political interest dictated a vigorous effort to establish his vigilance, particularly in relation to the security threat from the Chinese. Only when his personal political jeopardy was over (for example, now) was he able to resume the posture of minimizing the problem itself......."

Washington Times 9/22/00 Bill Gertz "…..The Justice Department has declined to prosecute a CIA official for tipping off a U.S. defense contractor to a Senate investigation of missile technology transfers to China. ….. The department notified the Senate Intelligence Committee two weeks ago that it would not bring obstruction charges against the official who alerted Hughes Space and Communications International Inc. about a secret Senate panel inquiry two years ago. The identity of the CIA official, a woman who was once a Los Angeles-based agent in the domestic intelligence collection unit, could not be learned………. Mr. Shelby said in an interview that he requested the criminal probe together with Sen. Bob Kerrey, Nebraska Democrat and at the time the panel's vice chairman, after learning in September 1998 that CIA officials contacted Hughes about the investigation…….. Committee investigators had directed two CIA officials not to alert Hughes to their inquiry, congressional aides said. The investigators hoped to surprise Hughes' officials and sought access to a company report on rocket technology transfers………"

ABCNEWS 9/21/00 "…..A Manhattan law firm was charged Wednesday with operating as a massive immigrant smuggling operation, concocting scores of fraudulent asylum claims and helping smugglers kidnap and hold captive clients who didn't pay their fee. ……. Prosecutors say the Harvard-educated lawyer who operated the firm, Robert Porges, his wife and seven others worked with the Chinese immigrant smugglers earned more than $13 million illicitly over the last seven years as it forged a relationship with Chinese smugglers. U.S. Attorney Mary Jo White described the operation as "unprecidented in scope and egregiousness."…… The fraud may have changed the outcome of as many as 7,000 asylum cases, forcing the government to review every one to determine whether each person should have been allowed to stay in the country. ……The Porges Law Firm allegedly teamed up with smugglers who charged desperate aliens between $40,000 and $50,000 to sneak them into the United States. When aliens were captured by U.S. authorities, the law firm built a tower of lies to obtain asylum for them, authorities said…….."

Inside The Pentagon 9/21/00 Keith Costa "……Three senior Republican lawmakers have asked Defense Secretary William Cohen for information on military-to-military exchanges between the United States and China, including steps taken by the Pentagon to prevent China from using the exchanges to garner intelligence about the U.S. military. The lawmakers -- Senate Armed Services Committee member Bob Smith (NH), House Majority Whip Tom DeLay (TX) and House International Relations Committee member Dana Rohrabacher (CA) -- also express concern that the Defense Department has ignored the intent of Congress when conducting exchanges with China. "We would like to know what steps the department takes to ensure that individual officers, soldiers and contractors, who might participate in these exchanges, are not inadvertently providing militarily useful information through questions posed during briefings, or through casual contact, and any informal discussions that might take place," the lawmakers write in a Sept. 14 letter to Cohen. The letter was obtained by Inside the Pentagon. …… "We would also like to know if DOD takes any action to determine if DOD employees or contractors whom the Chinese are exposed to are later re-contacted by any of the [People's Republic of China] military attaches or by agents who might be operating for the [People's Liberation Army] or Chinese government," they add. ……."

New Zealand Herald 9/24/00 "…..Of all the riddles that surround the destruction of the Russian submarine Kursk, perhaps the most baffling concerns a stooped and ailing American professor who has spent the past five months in Moscow's notorious Lefortovo prison. ...... His name is Edmond Pope and, if there is even a shred of truth to the whispers about what he was doing when Russian secret policeman arrested him with a satchel containing $US40,000 ($93,962) in cash, the former United States Navy officer may well be the unluckiest of souls: an amateur spy whose masters have decided to leave him out in the cold. ...... Wherever the truth may lie, one thing is certain: apart from the Russian technicians who designed and built it, Pope is probably the world's foremost authority on one of the most remarkable weapons ever hoisted on board a ship of war. The Russians call it Squall - a wedge-shaped, rocket-powered torpedo with a blunt, boxy nose that US defence analysts are convinced can break the sound barrier underwater. According to Moscow prosecutors, Pope was trying to purchase the torpedo's blueprints when he was taken into custody on April 3. ......"

wwwcnsnews.com 9/24/00 Julie Stahl "….Negotiations between Israel and the Palestinian Authority probably will be unaffected by Washington's decision to temporarily relieve US Ambassador to Israel, Martin Indyk, of his duties over the weekend after the State Department revoked his security clearance. Indyk, a major player on President Clinton's peace team, is under investigation for mishandling classified information over a period of five years, but he is not suspected of espionage or of compromising US intelligence, according to various reports………Indyk said in a statement on Friday that he regretted "that my trying to do the best possible job under very difficult conditions has led to the temporary suspension of my security clearances while it is determined whether correct security procedures were followed…… "Jeopardizing the national security interests of the United States is absolutely abhorrent to me, and I would never do anything to compromise those interests," said Indyk…….. For the time being, Indyk is not allow to handle classified information, must have an escort to enter the State Department and cannot return to Israel to continue his work as Ambassador. Indyk has been replaced temporarily in Tel Aviv by the Deputy Chief of Mission Paul Simons, who will run the Embassy as Charge d'Affairs. ......Indyk is not suspected of passing information to Israel or any other State, and the alleged offenses are said to have occurred prior to his current tour of duty as Israeli Ambassador, which began in January. …"

TBO.com 9/21/00 AP "……Justice Department officials assigned to train foreign police were responsible for "pervasive, recurrent and persistent" security violations in the mid-1990s, a report by the department's inspector general concludes. ……. The report says Justice Department employees also repeatedly mishandled sensitive information in ways similar to the alleged security violations by former CIA director John Deutch and former Los Alamos scientist Wen Ho Lee, The Washington Post said Thursday. …….. The violations allegedly were committed by officials in the Justice Department's Criminal Division, responsible for a program, called the International Criminal Investigative Training Assistance Program, or ICITAP, that trains police in emerging democracies, including former Soviet republics. The employees handle classified information about the internal workings of foreign police. …… In one example given by the report, the former chief administrative officer of the Criminal Division, who oversaw the program, had improper relationships with two women in Russia. That, combined with his top-secret security clearance, made him "vulnerable to blackmail or extortion," the report said. ….."

Washington Times 9/21/00 Jerry Seper "……A top Justice Department executive bypassed normal immigration procedures to win visas for two Russian women with whom he "socialized extensively" during taxpayer-paid trips to Moscow, and a House committee will ask his boss today to explain how he was able to circumvent the system. ……Robert K. Bratt, former head of the Criminal Division's international police training section, was accused in a report by the Justice Department's Office of Inspector General of improperly obtaining the visas after claiming through the U.S. Embassy in Moscow that visits by the women to this country were in the national interest……. The House Judiciary Committee, chaired by Rep. Henry J. Hyde, Illinois Republican, will ask Deputy Attorney General Eric H. Holder Jr., who oversees the Criminal Division, at a hearing today to clarify how Mr. Bratt was able to use his government position to procure the visas……. Mr. Hyde also will ask acting Inspector General Glenn A. Fine to document violations his office discovered during an investigation of the department's International Criminal Investigative Training Assistance Program, headed by Mr. Bratt……."

Washington Times 9/21/00 Jerry Seper "……Investigators said Mr. Bratt "put his own interests ahead of the interests of the government" and described him as "recklessly indifferent to the security interests of the government." Their report said Mr. Bratt and Mr. Lake bypassed the "standard" immigration process in obtaining visas for Yelena Koreneva, with whom Mr. Bratt had a "romantic relationship," and Ludmilla Bolgak, whom Mr. Bratt met during one of four trips he made to Moscow in 1996 and 1997……."

World News Spotlight 9/19/00 Hal Lindsey "…… Recent revelations concerning the state of our nation's intelligence services suggest the term may be somewhat misleading. First, we find that most of our top nuclear secrets are in Chinese hands. The administration's policy toward China is suspect thanks to the sheer volume of inexplicable waivers, grants and special privileges granted China over the course of the last seven years. The Chinese have been overnight guests at the White House; the Chinese have been implicated in 1992 and 1998 campaign finance money laundering schemes; the Chinese have been invited to sit in on secret national military strategy sessions; the Chinese have been implicated questionable financial deals with administration officials, notably the late Commerce Secretary Ron Brown. Brown's death aroused considerable controversy, as evidence was uncovered regarding what he knew of the administration's dealings with China and the mysterious .45 cal bullet hole in his head that he got as the result of a plane crash in Bosnia. Just in time to keep him from testifying before a Congressional investigating committee. Convenient. ......... "

World News Spotlight 9/19/00 Hal Lindsey "…… Then there is the Wen Ho Lee case. After keeping him locked up incommunicado for nine months, the government released him with profuse apologies. The FBI evidently lied about the results of his polygraph test. The 'secrets' were downloaded with the knowledge of his superiors. Most weren't even secret, but had already been published elsewhere. And there was evidently nothing at Los Alamos that was secret from the Chinese, anyway. Lee pled to a felony count of mishandling secrets and was immediately released. ……… While the nation ranted about lost secrets and the 'traitor, Wen Ho Lee', former CIA Director John Deutch was downloading ultra-secret CIA documents via AOL to his home computer. Deutch also used the same computer to visit porn sites on the Internet. Deutch stepped down in 1996, and that was that. Because while the CIA can't keep anything secret from China, keeping things secret from Washington is easy. The Deutch investigation was dropped while the Wen Ho Lee investigation went forward full steam ahead. The Pentagon said it declined to investigate because the Pentagon was not "in possession of any documentation from the CIA's investigative efforts." In other words, the Pentagon was the only place in America that hadn't heard about Deutch from ABC news. The CIA investigation data was finally turned over the the Pentagon, and Secretary Cohen "turned right around" and ordered the current investigation. …….. "

World News Spotlight 9/19/00 Hal Lindsey "…… John Deutch currently teaches at MIT and presumeably earns a comfortable living. Wen Ho Lee will, in Energy Secretary Bill Richardson's words, "never work in a secure environment, or ever hold a government job in his life again." Bill Clinton is a white male in a position of power. His compromise of our national security will never be fully known or even investigated. He will never miss a meal in his life and you can bet his credit card payments will never force him to mortgage the family homestead. ……."

Wall Street Journal 9/19/00 ".......Let's review the actual timeline on the Lee affair: Start with the atmosphere of unseriousness about security that pervaded the administration. Early on, Rep. Frank Wolf held hearings into the White House's slovenly process for issuing security clearances to its own personnel. Russian intelligence managed to place wiretaps in one of the most presumably secure floors of the State Department, with sensitive laptop computers disappearing. There was as well the gaudy cast of characters rolling through the White House for campaign-contribution coffees and photo-ops--Macau gangsters, Chinese arms dealers, Johnny Chung and Charlie Trie, who later fled to China. ......... At an amazing press conference on Dec. 7, 1993, Energy Secretary Hazel O'Leary unveiled the DOE's "openness initiative." "The Cold War is over; we're coming clean," she said. She announced that 32 million pages of classified documents were now subject to review and possible release to "put the United States out in front as a nation willing to share." She joked: "During the Cold War, I would have been arrested for what I said." No wonder Wen Ho Lee thought the rules had changed. They had. ....."

Wall Street Journal 9/19/00 ".......Indeed, in mid-1997, Attorney General Janet Reno turned down the FBI's request to put a wiretap on Wen Ho Lee, whom they'd been investigating for years. Given the stakes here, and the by-the-books use of a wiretap under such circumstances, the request should have been a routine slam dunk. But Ms. Reno blocked it. Her justification: The evidence against Lee was too fragmentary. We know, however, that Wen Ho Lee copied sensitive data onto 10 computer tapes, a warehouse of information. Seven of those tapes are still missing. He repeatedly failed polygraph tests. A prima facie case was obvious; the wiretap was warranted. In the event, he entered a guilty plea to one count and promised to cooperate with investigators over the next year. ......"

Wall Street Journal 9/19/00 "....... The Hazel O'Leary "willing to share" national security policy ended in January 1999, with the release of the Cox Report, asserting: "The PRC thefts from our National Laboratories began at least as early as the late 1970s. Significant secrets are known to have been stolen, from the laboratories or elsewhere, as recently as the mid-1990s. Such thefts almost certainly continue to the present." Exactly two months later, the Energy Department announced that it had fired Los Alamos computer scientist Wen Ho Lee. Quickly, Lee ended up carrying responsibility for the whole sieve of data leaking out of Los Alamos. ......... On March 19, 10 days after the Wen Ho Lee firing and two months after the Cox Report, President Clinton was asked at a news conference whether any of these Los Alamos security breaches took place on his watch. The President replied: "To the best of my knowledge, no one has said anything to me about any espionage which occurred by the Chinese against the labs during my presidency." This is almost certainly a false statement. ....."

Wall Street Journal 9/19/00 ".......Also at his March 19 news conference, Mr. Clinton hotly denied that his administration suppressed reports of Chinese spying to avoid association with reports of laundered Chinese contributions to the 1996 Clinton-Gore campaign. "That is not true," the President asserted. Our view of this "fiasco" would run like this: With the issuance of the Cox Report, it was obvious that the administration faced a massive security embarrassment involving the very nation alleged to have funneled money into the President's re-election. And so to divert attention from a genuine fiasco, the Clinton brain trust found a scalp, a fall guy, in Wen Ho Lee. We may never know the truth about Lee's activities or guilt (of a piece with the Chinese contributions), but the notion, allowed to run for a year, that somehow this one man constituted the Los Alamos breakdown was preposterous; it was a diversion. Now the chase has ended in a predictable plea-bargain, and the "investigation" will soon disappear into the mists, carrying with it this presidency's responsibility for what happened at the Energy Department on its watch, as with so many other security lapses. ......"

FoxNews 9/18/00 Larry Margasak AP "......The Pentagon was alerted in the summer of 1998 that former CIA Director John Deutch downloaded defense secrets to unsecured personal computers and was urged to assess the damage. But documents show it waited until last February to begin investigating. Among those who were told that the CIA was recommending a Pentagon damage assessment was Defense Secretary William Cohen. ....... Rear Adm. Craig Quigley, a spokesman for Cohen, said the secretary did not act in 1998 because the Pentagon was "not in possession of any documentation from the CIA's investigative efforts.'' He said that when information was turned over last February, Cohen "turned right around'' and ordered the probe now under way. ....... The Pentagon documents, obtained by The Associated Press, show that in 1998, Cohen was at least informed by his inspector general that the CIA had evidence that Deutch download defense secrets to personal computers. Cohen finally ordered a review in February when he said information was received by the Pentagon "for the first time.'' In the July 1998 memo to Cohen and his top deputy, acting inspector general Donald Mancuso wrote, "The CIA believes it may be necessary for DOD (Department of Defense) to conduct an assessment of any possible security compromises identified in their investigation.'' ......."

Department of Justice - Office of Inspector General Reports 9/20/00 Freeper SVTCobra "…… The report, excerpted below, regards a DOJ investigation of why the FBI did not disseminate pieces of Intel on Chinese Agents to the leadership of the FBI, the DOJ Campaign Task Force and the Congress. This relates to ChinaGate and the 1996 Election. ……… Essentially the FBI was following Chinese Spies in the US and discovered they had connections to US political leaders. They never connected this Intel to the Campaign Finance Task Force investigation which began in 1996. …….. This document contains references to FISA authorizations to spy on Chinese Agents in the US. That means Chinagate wasn't about CIA Intel about Chinese spying from overseas sources. It was about FBI Intel on Chinese spying inside the US. CIA doesn't operate in the US and doesn't need a FISA OK to collect Intel. ……..This is also definitive evidence that Fred Thompson's statement in the Senate in 1997 that there is evidence of Chinese Agents gaining access to US Politicans (probably President Clinton and Al Gore) is true and based on this FBI Intel Operation. People like Maria Hsai, Charlie Trie, John Haung, James Riady, Johnny Chung are probably on the FBI list of PRC Agents they investigated. ………"

The Handling of FBI Intelligence Information Related to the Justice Department's Campaign Finance Investigation (July, 1999)
Unclassified Executive Summary
Michael R. Bromwich
Inspector General
July 14, 1999

……. However, although many of these pieces of intelligence information were made available to the Attorney General, Director Freeh, or senior Department officials, many of them were supplied in a fashion that belied their significance. That is, they were not actually briefed - either orally or in writing - to the Attorney General, Director Freeh, or their senior staffs. Rather, they were contained in routine documents related to the Department's use of the Foreign Intelligence Surveillance Act (FISA), serendipitously included in memoranda on other subjects, or buried amid documents that were made available to the Attorney General, Director Freeh, or their staffs. These were ineffective methods of communicating important intelligence information to senior Department officials. Indeed, this explains why some officials were unaware that they had received these pieces of information before.

The PRC Intelligence Investigation

Most of the 10 pieces of information that the FBI re-discovered after the September 1997 hearings were collected by the FBI prior to or during the FBI's PRC intelligence investigation that was begun in 1996 after several FBI field offices began receiving intelligence information suggesting that the PRC had embarked on a broad-based plan to influence U.S. politics. The information being collected by various field offices concerning the PRC plan culminated in 1996 in a decision by NSD to open and supervise an overarching intelligence investigation at FBI Headquarters (FBI HQ) that would administer the ongoing investigations being conducted by the field offices. In the meantime, NSD received provocative reports from an FBI field office concerning alleged ties that a subject of the FBI's intelligence investigation had to the PRC government and to various U.S. political leaders.*** Some of this information was contained in documents generated by the FBI and OIPR to which the Attorney General and Director Freeh had access.

Convergence of the Intelligence Investigation and the Campaign Finance Task Force Investigation

In December 1996, an FBI field office reported information concerning an individual who would later become a subject of the Task Force's investigation. That information would later be identified as one of the 10 pieces of undisseminated information that were the focus of the OIG investigation. When this piece of information was received by NSD, it was shared with the FBI's National Security Law Unit (NSLU) for advice on handling. In early January 1997, NSLU gave a copy of the teletype containing the report to a Main Justice official who often handled intelligence matters. That same official also supervised the Task Force, which had recently been formed to investigate allegations of campaign finance violations. The Main Justice official discussed the information with other Main Justice officials, including the Attorney General, and arranged for the Task Force to receive a briefing on the FBI's intelligence investigation. On January 10 and 13, 1997, NSD conducted briefings on the intelligence investigation for the Task Force and senior FBI and Main Justice officials.

Director Freeh closely followed the Task Force investigation.

Accordingly, although he did not attend the January 1997 briefings NSD conducted, he was informed in a January 30, 1997 memorandum about intelligence information that related to the Task Force investigation. Director Freeh received his first briefing on the intelligence investigation on February 5, 1997.

NSC and the PRC Intelligence Investigation

In February 1997, White House Counsel Charles F.C. Ruff contacted the Department twice seeking information regarding PRC involvement in attempts to affect U.S. policy. Ruff's request related to Secretary of State Madeleine Albright's plans for an official visit to China that month.

The Department's first response to Ruff's request merely reiterated information that the FBI had supplied to the NSC in a June 1996 briefing about the PRC's plan to influence Congress. After Ruff's second inquiry, the FBI and Main Justice conferred over the appropriate amount of information to provide in response. Some officials advocated providing only a limited response because they believed that providing investigative information to the White House about the PRC and campaign fundraising violations was akin to briefing the subject of an investigation about that investigation. Ultimately, the White House Counsel only received copies of teletypes concerning the PRC plan to influence Congress that had previously been transmitted to the White House.

Both the FBI and Main Justice sought to ensure that information that might undermine the criminal investigation was not disseminated to the White House. However, there were disagreements over the implementation of this policy. Some senior FBI officials expressed objections to briefing the NSC about information potentially related to the criminal investigation but derived from the intelligence investigation. In contrast, senior Main Justice officials believed more broadly that intelligence information bearing on national security should be given to the NSC. In the aftermath of this disagreement, the FBI chose not to attend NSC briefings on the intelligence investigation, although the FBI continued to review the content of any such briefings.

NSD operational personnel at times ignored or contradicted analysts' evaluation of information, creating situations in which the import of intelligence information was the subject of disagreement within NSD. For example, there was disagreement within NSD over the characterization of certain individuals as PRC agents***, and this disagreement prompted NSD to send mixed messages in its dissemination of information about these alleged agents. Even as the FBI began to distance itself from such characterizations in congressional testimony, it was continuing to make statements in documents concerning the FBI's intelligence investigations that were ambiguous and could have been interpreted as claiming that an individual was indeed a PRC agent.

Daily Telegraph 9/21/00 Linus Gregoriadis, Thomas Harding and Andrew "….. THE MI6 spy building in central London was rocked by at least one explosion last night. Some reports said two. Firefighters were called to the foreign intelligence service's headquarters on the south bank of the Thames just before 10pm. No casualties were reported. The distinctive green and cream building was evacuated and the surrounding area sealed off. Vauxhall bridge was closed to traffic. A security source said that there was a small blast, confined to one room near the top of the building. ….."

Stratfor via Cryptome 9/18/00 "……Two people are alleged to commit strikingly similar offenses. One, Wen Ho Lee, spends a year in prison only to have an embarrassed government agree to a plea bargain. Another, John Deutsch, hasn't been charged with anything but watches as the investigation against him expands, and expands. …….. Many people regularly mishandle classified information, befuddled at the complexity of regulations over what is classified and what is not. Most of these cases never become legal matters at all; they are handled administratively or simply ignored. Lee was probably singled out because U.S. intelligence discovered in China nuclear data similar to what Lee worked with at the laboratory. His plea bargain may mean that in learning the whereabouts of his missing tapes, the government may get what it wanted all along and uncover an espionage ring. ………… Consider the case of Deutsch, a former top official of both the CIA and the Defense Department. As a high official he has had every right to read classified information in his office, but not at home. There is no indication that he ever intended to sell or pass the information, just that he mishandled it, much like Wen Ho Lee. But here's where the politics comes into play: If they're going to hammer Lee, then they're going to hammer Deutsch. It would look too bad not to do so. ………. The Lee and Deutsch cases turn out to be identical in the sense that, in the end, the most either man can be charged with is a procedural violation. Both were careless at most. ……."

 

UPI 10/17/00 Ashley Baker "……The Senate Judiciary Committee will consider on Wednesday a subpoena that would compel Energy Secretary Bill Richardson to answer charges that he derailed an ongoing counterintelligence case by leaking the name of its principle target, Wen Ho Lee, to the press. The development follows an Oct. 3 hearing in which former Energy Department intelligence chief Notra Trulock testified that a reporter had confided to him that Richardson was the source of the leak. ……"

UPI 10/17/00 Ashley Baker "……"There are ongoing negotiations between the Committee and the Department over how best to provide information the Committee wants," said Richardson spokesman Stuart Nagurka. …… Last month, arguing they had no alternative that would compel information on the whereabouts of at least seven other top-secret disks from the Los Alamos National Laboratory made by Lee, federal prosecutors dropped all but one of 59 counts against the former weapons scientist. Although investigators say they have evidence that Lee downloaded and copied hundreds of thousands of pages worth of classified documents, they have yet to claim evidence that he passed them to a foreign power. ….."

UPI 10/13/00 Eli Lake "……The day before a rubber raft carrying explosives sank the USS Cole in the Yemeni port of Aden, and two days before a bomb exploded at the British Embassy in Yemen's capital, Sanaa, a leading newspaper in Jordan printed a statement from an unknown terrorist organization threatening to target U.S., British and Israeli ships and planes……… The group, known as Al Nitha al-Wahdawi, or New Unified Fighters Group, handed a typed statement to the editor of Al-Bilad on Wednesday giving the United States one month to meet eight demands, including the withdrawal of U.S. military ships brought to the area during and after the Persian Gulf War of 1991………. Independent terrorism expert Steve Emerson, who noticed the newspaper item, said it was particularly significant because U.S. ships were mentioned……. "There have been threats like this in the past, but never this specific," he said. "Here they were specific about ships in the Persian Gulf."……."

New York Times 10/14/00 Steven Lee Myers "…… The United States received a general warning of a possible attack on an American warship last month, senior defense officials said here today, but the warning lacked detail and did not specify the country in which to expect the attack. "It was a question of how directly you could tie it to a certain place," one of the officials said. Since the warning, reported by an intelligence source in the Arab world, was not specific enough, "it got put on the shelf."...... Nor was it clear that the warning could have stopped what officials described today as a sophisticated suicide bombing. While the Cole's crew had extensive training in repelling an overt attack by a small boat and even had extra sailors on watch on Thursday, the attack was so meticulously disguised and carried out that the officials said there was little the crew could have done to stop it……."

The Drudge Report 10/14/00 Bill Gertz "…… Refueling U.S. warships in the Arabian port of Aden is part of a broader U.S. government effort to develop closer ties with Yemen and to place an electronic eavesdropping post on a nearby island, U.S. intelligence officials said yesterday. Military intelligence specialists hope improving relations with the Yemeni government will lead to intelligence cooperation and the building of a signals intelligence site on the island of Socotra, some 220 miles off Yemen's eastern coast. The island is ideally suited for monitoring electronic signals throughout the region, especially the hundreds of ships that pass daily through the Gulf of Aden, the Arabian Sea and the Indian Ocean. ``It's a key strategic collection point,'' said one official. Closer ties with Yemen also might lead to the use of the island as a place to store supplies and equipment that could be used in the event of a regional conflict, the officials said. ….."

Reuters 10/16/00 Edmund Blair "……Yemen said on Monday it had evidence the blast that crippled a U.S. Navy warship killing 17 American sailors in the southern Yemeni port of Aden was a ``planned criminal act.'' President Ali Abdullah Saleh told General Tommy Franks, the commander-in-chief of U.S. Central Command, that ``preliminary results and important evidence reached by security forces in Yemen...indicate that it was a planned criminal act,'' the official Saba news agency reported. Saleh had initially said Thursday's blast was not a deliberate act, while U.S. officials said it was an apparent suicide attack. Saba did not say if the president briefed Franks, who later visited the ship, on the reported evidence. ….."

Washington Times 10/17/00 Frank J. Gaffney Jr. "……The recriminations have begun in connection with the attack on the USS Cole. Unfortunately, the real scandal is not that a government with Yemen's longstanding ties to international terrorism was given more than a week's notice that one of the United States' premier capital ships would be placed in a highly vulnerable position in its waters for four to six hours. ……..Rather, it is that the reckless disregard of the fundamentals of physical, information and personnel security that contributed to this debacle are all-too-common practices under the Clinton-Gore administration……."

Center for Security Policy 10/16/00 Decision Brief 00 D 83 "……The recriminations have begun in connection with the attack on the U.S.S. Cole. Unfortunately, the real scandal is not that a government with Yemen's longstanding ties to international terrorism was given over a week's worth of notice that one of the United States' premier capital ships would be placed in a highly vulnerable position in its waters for four-to-six hours. …….. Rather, it is that the reckless disregard of the fundamentals of physical, information and personnel security that contributed to this debacle are all-too-common practices under the Clinton-Gore Administration. ……… Consider the following illustrative examples culled from the just the past few weeks' headlines: North Korea: President Clinton is about to compound the mistake of pretending that Yemen is no longer a nation closely associated with terrorism by dropping North Korea from the State Department's list of State Sponsors of Terrorism (SSOT). This is all the more preposterous insofar as North Korea is arguably the most aggressive abettor of international terror, thanks especially to its aggressive proliferation of weapons of mass destruction and ever longer-range ballistic missiles around the world. ……..The reason is similar to that used to justify removing Yemen from the SSOT list a year or so earlier: The Clinton-Gore Administration finds it expedient to politicize or otherwise disregard the relevant intelligence in the service of other priorities. ….."

WorldNetDaily.com 10/17/00 Paul Sperry "…..When Al Gore's campaign chairman, William Daley, took over the reins at the Commerce Department more than three years ago, he came under immediate pressure to tighten security in the wake of reports of major security lapses, including loose handling of classified information, at the department. ….. The problems came to light during congressional investigations of former Commerce official John Huang, a convicted Clinton-Gore fund-raiser with close ties to Beijing. …. In 1997, a special security task force recommended sweeping improvements in the way the department handles employee security clearances and classified information. In a July 1997 internal memo, Daley agreed to make the recommended changes. …..But few of the changes have been made, and some of the money budgeted for fixes has been "wasted" by the department's security office on employee retreats, seminars and outside consultants, security officials told WorldNetDaily. …."Daley agreed to the security improvements, but they never happened," said a former Commerce security specialist. "He just paid lip service to the recommendations." "Security there is a joke," said another official who also wished to go unnamed. ………."

WorldNetDaily.com 10/17/00 Paul Sperry "…..Before issuing security clearances, supervisors are now supposed to justify an employee's "need to know." And political appointees are no longer supposed to be granted clearances willy nilly. But those rules haven't been followed, security officials say. "Holmes allows every political appointee who comes in there to get clearance, regardless of derogatory information (in their background files), and there are quite a few who came over from the White House to Daley's office with problems," said a former official who worked under Holmes. …… "Once we started digging into these clearances, we found it's just a mess," the official said. "People have access, but don't have clearances. People have clearance but have no need to have access." Look no further than new Commerce Secretary Norman Mineta, sources say. ……. Mineta, the first Asian-American member of a U.S. Cabinet, "is now accessing sensitive compartmented information and has no clearance to view it," said a security specialist. SCI contains code-word information and is a level of classification higher than top secret. ……"

WorldNetDaily.com 10/17/00 Paul Sperry "…..And Commerce only tracks secret and top secret information. It doesn't control documents marked "confidential," yet such information "would give a foreign power information they don't need to know," the official said. …….Senate investigators revealed that Huang routinely carried documents in a brief case across the street to the Willard Hotel, sometimes on days he got CIA briefings. Fax records show he sent documents from a hotel office to China and Indonesia. Huang wasn't the only official who walked out of Commerce with documents that should have been kept locked in office safes. Commerce special counsel Ira Sockowitz, who worked for Gore during the '92 campaign, took 136 files totaling 2,800 pages out of his safe, put them in a box and walked out the door when he left the department during the '96 campaign. …….. Alarming as these security breaches are, employees can still walk out of Commerce with classified documents, according to Donald Forest, who heads Commerce's China desk and has access to top-secret and code-word information. ……"When department employees take classified documents out of the building, do they have to clear it with anyone? Do they have to show anyone what it is they're taking out of the building?," Forest was asked by Judicial Watch in a deposition taken last year. "No," Forest replied, "not to my knowledge." ….."

BRIAN MURPHY 10/16/00 AP "…..Yemeni security forces on Monday interrogated dozens of port workers and others -- including the head of the company that services U.S. warships -- as divers struggled to retrieve more bodies from the mangled USS Cole wreckage where 17 Americans died last week. ……… Ahmed al-Mansoob, general manager of the Al-Mansoob Commercial Group that provides food, supplies and garbage pickup to the U.S. warships, was released Monday after two days of questioning. The two crew members of the garbage barge assigned to the Cole were also brought in and later freed. Al-Mansoob would not speak to reporters. But Abdullah Al-Khalaqi, marketing director for the Yemeni company, denied any connection to the attack last week that killed 17 American sailors. ……. ''No one here is an extremist,'' he said in an office filled with caps, mugs and notes of thanks from visiting U.S. ships. ''Most of our employees are relatives,'' said al-Khalaqi. ''For others, we rely on word of mouth to see if someone is a good man.'' ……"

Washington Times 10/16/00 Bill Gertz "…… Vice President Al Gore Vice President Al Gore, at the urging of Russian Prime Minister Viktor Chernomyrdin, agreed to keep secret from Congress details of Russia's nuclear cooperation with Iran beginning in late 1995 In a classified "Dear Al" letter obtained by The Washington Times, Mr. Chernomyrdin told Mr. Gore about Moscow's confidential nuclear deal with Iran and stated that it was "not to be conveyed to third parties, including the U.S. Congress."…….But sources on Capitol Hill said Mr. Gore withheld the information from key senators who normally would be told of such high-level security matters The Gore-Chernomyrdin deal, disclosed in a letter labeled "secret," appears to violate a provision of the Nuclear Non-proliferation Act, which requires the Clinton administration to keep congressional oversight committees fully informed of all issues related to nuclear weapons proliferation……The Chernomyrdin letter on nuclear cooperation with Iran follows a report in the New York Times last week showing that Mr. Gore reached a secret deal with Russia several months earlier that appears to circumvent U.S. laws requiring the imposition of sanctions on Russia for its conventional arms sales to Iran……..That arrangement also was kept secret from Congress, raising concerns among some lawmakers that the administration may be hiding other secret deals……."

Washington Times 10/16/00 Bill Gertz "……Mr. Chernomyrdin said Moscow's program of building a nuclear reactor in Iran would be limited to training technicians in Russia, and the delivery of "nuclear fuel for the power plant for the years 2001 through 2011." "The information that we are passing on to you is not to be conveyed to third parties, including the U.S. Congress," Mr. Chernomyrdin said. "Open information concerning our cooperation with Iran is obviously a different matter, and we do no[t] object to the constructive use of such information. I am counting on your understanding." A classified analysis acompanying the letter stated that Russian assistance "if not terminated, can only lead to Iran's acquisition of a nuclear weapons capability." "Such a development would be destabilizing not only for the already volatile Middle East, but would pose a threat to Russian and Western security interests," the analysis stated……."

The Moscow Times 11/16/00 Simon Saradzhyan "……Russian naval reconnaissance planes twice caught a U.S. Navy battle group off guard in the Sea of Japan and hovered over the Kitty Hawk aircraft carrier, photographing its deck, commanders said Wednesday. Two Su-24MR planes spotted the group of U.S. Navy vessels on Oct. 17 and managed to fly over the Kitty Hawk before any of the carrier's fighter jets could take off to ward them off, air force chief Anatoly Kornukov told reporters in Moscow…… "The arrival of our planes came as a complete surprise to the Americans. Photographs show there was panic on the aircraft carrier's deck," he said. …… The two planes from the Pacific Fleet repeated their stunt on Nov. 9, the commander said. In both cases they were accompanied by Su-27 fighter jets from an air force unit stationed in the Far East….. The results of the two reconnaissance sorties were "impressive" and the pilots who flew over the Kitty Hawk will be decorated, Kornukov said. ….."

Defense Week 11/27/00 Tony Capaccio "…… Former CIA Director John Deutch engaged in "egregious" behavior, while serving as deputy Defense secretary, endangering national security when he used government laptops containing classified information to access his America Online account, according to the Pentagon's inspector general……..Deutch failed to safeguard classified information that included a daily journal he wrote on the machines, said the inspector general's report…….. The Pentagon report, dated Aug. 28, was not released to the public though it was provided to the Senate Select Committee on Intelligence and Senate Governmental Affairs Committee. A copy was obtained by Bloomberg News……… "The evidence we obtained clearly establishes that Dr. Deutch failed to follow even the most basic security precautions," said the report. "This situation was exacerbated because Dr. Deutch, while serving as deputy Defense secretary, declined department requests that he allow security systems to be installed in his residence."

AFP 11/167/00 "…… China on Thursday blasted reports it ran a network of spies inside the US intelligence establishment in the early nineties, calling the allegations "sheer fabrication." Foreign ministry spokesman Sun Yuxi accused the Washington Times newspaper of having a hidden agenda to damage China-US ties. "I think the report carried by the Washington Times is sheer fabrication out of ulterior motives, with which we express our strong dissatisfaction," Sun told a regular news briefing. ……."

Washington Times 11/13/00 Bill Gertz "…… In the early 1990s, the FBI came across evidence that amounted to a counterspy's worst nightmare: Classified reports showed communist China was running several "assets" - spies, in the vernacular - who operated clandestinely inside the U.S. government. …. One spy, however, was different from the others. He didn't work for just any agency. He had burrowed deep inside the U.S. intelligence community, meaning that the People's Republic of China had access to vital secrets…………. The information was revealed to FBI counterintelligence agents in highly sensitive communications intercepts between the Chinese Embassy in Washington and Chinese intelligence officers in Beijing. The intercepts suggested the agent was supplying the Chinese with classified defense information. The spy's code name was "Ma" - Chinese for "horse."……"

Washington Times 11/13/00 Bill Gertz "…… This hunt for a Chinese mole was rare for the FBI. Most of the other moles uncovered inside the U.S. government during the 1980s, in what became known as the "Decade of the Spy," were spies for the Soviet Union…….The defector was Yu Qiangsheng, a senior intelligence officer in the Ministry of State Security. Mr. Yu had extensive access to information about Chinese intelligence operations and agents. It was Mr. Yu who first put a CIA counterspy on to Larry Wu-Tai Chin, the Chinese language specialist, who worked for the CIA's Foreign Broadcast Information Service. The service publishes translations of foreign news publications and broadcasts……….Mr. Yu, who was resettled in the United States, remains under federal protection. He fears for his life because of Beijing agents. Mr. Chin eventually was unmasked. He had burrowed within the CIA for about 30 years, passing valuable political intelligence to Beijing. He was a rare catch, but before he could be interrogated thoroughly for "damage assessment," he committed suicide in his jail cell……."

Washington Times 11/13/00 Bill Gertz "…… Based on the defectors' testimony, the FBI began a major espionage probe. The bureau came up with a list of 12 suspects that fit the profile of the Dear Friend with access to U.S. military secrets. During systematic "interviews" of each suspect, FBI agents met with Mr. Montaperto in late 1991 or early 1992. At the time, he was chief of DIA's estimates branch for China, a job he held from September 1989 until his departure in February 1992. He had joined DIA as an analyst in October 1981 and worked his way up……… No, Mr. Montaperto replied. He said any contacts with Chinese intelligence were authorized. He did conceded to the DIA that he knew Gen. Yu, the Chinese intelligence officer. The FBI cleared Mr. Montaperto, though some counterintelligence officials still suspected he was Ma but couldn't prove it. The matter was put to rest conclusively, Mr. Montaperto said…….Hanging on the wall inside Mr. Montaperto's office was a large scroll of Chinese calligraphy. It contained the characters "horse dragon virtue," which when spoken in Mandarin sound like "Montaperto." A second set of characters on the scroll are Chinese for "war horse."……..The FBI never found the clandestine spy known as Ma. The bureau did uncover several Dear Friends, but did not seek prosecution. The FBI was hamstrung by the limited details provided by the former Chinese intelligence officers, who had seen the cables but did not have hard copies……"

Washington Times 11/13/00 Bill Gertz "……Because the FBI could not prove its suspicions, Mr. Montaperto was allowed to retain his top-secret security clearance. But he does not have the same access to intelligence information as he had at DIA. Gen. Yu, meanwhile, remains one of China's most important intelligence officers. He works for Gen. Xiong Guangkai, the PLA's deputy chief of staff for intelligence……. Mr. Montaperto's primary job at the government's National Defense University is to oversee the China portion of an annual "Strategic Assessment," to speak on China policy around the world and to organize an occasional conference on China. His pronounced pro-China view plays down that nation's military capabilities, specifically its development of strategic and conventional forces……"

Drudge Report 11/9/00 "...... Nicosia (dpa) - The sophisticated explosives used in attacking the U.S. destroyer Cole in Aden last month came from Russia via Iraq, an authoritative Arab news magazine said Thursday. The Paris-based Al-Watan Al-Arabi quoted reports filtering from Western intelligence agencies as saying that the explosives, ``which were of a type available only to Russia and the former East Germany'', had been smuggled to Iraq on one of the early Russian flights that broke the U.N. air embargo on Baghdad. ``The explosives were then transported to Yemen aboard a Yemeni plane by an Iraqi team that received training on how to use them,'' said the report. ``They were taken directly by truck from Sanaa to Aden in an operation that smacked of collusion by some senior Yemeni officials, thus the Yemeni attempt to mislead rather than help U.S. investigators.'' ......"

Transactional Records Access Clearinghouse (TRAC) at Syracuse University 10/4/00 Freeper Eightbits "…… I found this very interesting. If warrants for surveillance against spies is at an all time high why wasn't one grated in the Wen Ho Lee case? It makes you wonder whom they are watching. Could it be you or me? Seems like being a spy is a pretty safe occupation……..On this page http://trac.syr.edu/data/jus/eousaFOIA.html about 2/3rds of the way down. …" In August of 2000, TRAC put up a new edition of its FBI web site that spotlighted the agency's internal security and counter terrorism activities. The FBI itself releases almost no information about this important aspect of its overall responsibilities. But data obtained from the Office of Personnel Management, an obscure report filed each year by the Attorney General and the Executive Office of U.S. Attorneys provided unique new insights. The data show, for example, that from 1992 to 1999 the number of FBI intelligence officers have almost quintupled, that special warrants for surveillance activities against spies and terrorists are at an all time high and that in 1998 only 45 of the FBI's 12,730 convictions concerned such problems. Because of the recent reversal in the Justice Department's FOIA policy, however, 1999 data on convictions were withheld from TRAC. ….."

Washington Times 10/12/00 Bill Gertz "……Former CIA Director John Deutch compromised some of the most sensitive defense programs by improperly transferring data about ultrasecret Pentagon programs to computers he used to send e-mail and access the Internet, The Washington Times has learned. …… The compromises occurred sometime after 1994 and have raised fears among Pentagon security officials that foreign governments obtained access to the "crown jewels" of the Pentagon's secret weapons, intelligence and military programs, according to defense officials……. The Senate Intelligence Committee has completed a report on the CIA's handling of the Deutch security breach, but release of the report is being delayed by Sen. Carl Levin, Michigan Democrat, who is challenging its findings, according to congressional sources…….. The Pentagon officials said the compromises are based on a "worst case" estimate that information requiring extraordinary secrecy has been released improperly or gathered clandestinely by foreign spies. "We don't know the full extent," said one official. "But until we do, you have to assume there were serious compromises."…….. Officials said the case is potentially the most damaging security breach in the Pentagon's history because of the secrets involved……. For example, special access programs include vital defense information used during wartime. During the Persian Gulf war, one special access program was set up to protect information about a flaw in a foreign-built radar system used by the Iraqi military, which provided a major advantage to U.S. allied military forces during the conflict…….The officials said the compromises are not being investigated by security and counterintelligence officials at the Pentagon or the FBI……"

Personal Research 11/6/00 Freeper Patrick Briley "……. The following analysis is based in part on an article "FBI Agent Sues To Report Misconduct" written by AP reporter Michael Sniffen and published in the Washington Post on November 3, 2000. …….. Rogoskey's lawsuit asks a US District court to permit Rogoskey to transmit his allegations to Congressional oversight committees as well as Clinton and Madeline Albright. Rogoskey has been denied permission by FBI director, Louis Freeh and Deputy Attorney General Eric Holder to send his allegations to Congress, Clinton and Albright. ………. Rogoskey also appears to be seeking permission because he perceives a serious conflict of interest by the FBI and DOJ in investigating and deciding whether or not his allegations can be transmitted to Congress……. Kohn's statement leaves little doubt that Rogoskey is saying that the FBI and possibly DOJ is the "institution" which ordered and permitted Federal workers to commit crimes during the operation. ……… Freeh and Holder have not given Rogoskey any assurances that his allegations are being investigated. There has been no indication that the FBI or DOJ has corrected any problems by taking disciplinary actions and filing charges against those government officials and Federal workers Rogoskey say were involved. ….."

Personal Research 11/6/00 Freeper Patrick Briley "…….The Senate Judiciary Committee of Congress has direct Constitutional authority and oversight responsibilities for the conduct of Federal officials and workers in the DOJ and the FBI. This is the Committee that Freeh and Holder would be trying to keep Rogoskey from talking to. ……… And according to a Washington Post article "Former FBI Workers File Whistleblower Suit " by Michael Grunwald dated October 20, 1998, three other FBI workers sued the Federal government for FBI and DOJ failure to enforce a 1989 law that protects whistleblowers who complain about misconduct at the FBI. ………"

Personal Research 11/6/00 Freeper Patrick Briley "…….What is important is that Rogoskey is claiming FBI officials and Federal workers under their control have committed Federal crimes. Although it has not yet been publicly revealed what operation was underway when the crimes occurred, it is possible the operation was either a counterintelligence, a counter terrorism or espionage operation. There has been corrupt FBI behavior reported in these operational areas since 1992. …… Corrupt FBI behavior has been reported in the sieges at Waco and Ruby Ridge, in the bombings of TWA 800, the embassies in Kenya and Tanzania and the WTC and Murrah building in OKC. Corrupt FBI conduct was also involved in the loss of nuclear technology at US national labs including the Win Ho Lee case……… The FBI also participated in covering up allegations made to them by Army intelligence of Chinese espionage in the SDI program at Kirtland AFB in Albuquerque, New Mexico……. In 1997 ABC Nightline reported that the FBI had deliberately helped an American steal and sell blueprints and manufacturing processes for Intel's Pentium processor to the North Koreans, Russian and Chinese. The FBI admitted their corrupt and illegal operation to ABC but tried to justify it by claiming it was necessary to gain intelligence on Cuban and Castro operations inside the US……"

Enter Stage Right - A Journal of Modern Conservatism 12/18/00 Notra Trulock "....... we must reconstitute our intelligence capabilities against the proliferation threat. The Clinton Administration's abuse of intelligence over the past 8 years borders on the criminal. Our intelligence collection capabilities have atrophied as Administration officials "shared" ever more precious intelligence information to convince proliferators that we could catch them in the act. Energy Department officials routinely told their Russian interlocutors about U.S. intelligence on Russian-Iranian deals. Bill Richardson and Frank Wisner "shared" information about our overheard photography capabilities with both India and Pakistan in an attempt to dissuade them from testing new missile and nuclear weapons. Surely the most outrageous case involved a White House "leak" to the Washington Post identifying the source of CIA reports on Iran's nuclear developments. The purpose of the "leak" appeared to be to discredit the reports by dismissing the source as "flaky".

But over and over again Administration abuse of intelligence sources and methods resulted in lost "access." Foreign intelligence services went to school on U.S. intelligence capabilities and fashioned robust denial and deception plans to thwart collection of indications of proliferation violations. Given all this and the scorched earth policy of the administration and its allies in the Intelligence Community against the integrity of our analytic capability, it is little wonder that we are surprised time and again. ....."

Washington Times 12/6/00 Frank J. Gaffney Jr. "…….Today, there are no fewer than three different inquiries under way aimed at assessing shortfalls in what the military calls "force protection" that led to the death and wounding of scores of American sailors and the near loss of their ship, the USS Cole. When all is said and done, heads will likely roll, as otherwise unblemished records of service and command are destroyed over the failure to provide adequately for the security of our uniformed personnel as they went into harm's way in service to their country. …… This tragic reminder of the vulnerability of the men and women in uniform and the solemn responsibility their leaders - civilian and military - have to ensure they are not unnecessarily put at risk comes to mind as one considers a letter sent to President Clinton on Oct. 5 by more than 90 members of Congress. In this missive, the predominantly liberal Democratic signatories called on Mr. Clinton before leaving office to deny ground-based American troops one of the most tested and dependable means of force protection ever invented: anti-personnel landmines (APL). ..."

UPI 12/5/00 Eli Lake "…..After several months of investigation into a missing classified laptop computer from the State Department's Bureau of Intelligence and Research, Secretary of State Madeleine Albright on Monday stripped that office's deputy of his post, prompting the department's intelligence chief to quit Tuesday……. On Monday, Albright reassigned the deputy of the Intelligence and Research Bureau, Donald Keyser, in light of the laptop investigation that reportedly recommended a month's suspension without pay, according to the New York Times……"

Fox News 12/5/00 "…..In a widening dispute over a missing laptop computer, the State Department has ruled that six employees should be disciplined in a range of actions from reprimand to firing, spokesman Richard Boucher said Tuesday……. Secretary of State Madeleine Albright, in a parallel move, ordered the reassignment of Donald Keyser, deputy director of the Bureau of Intelligence and Research, to a less prominent post. This prompted the bureau director, J. Stapleton Roy, a former ambassador to China, to resign effective Tuesday. Roy was due to retire in January. The six officers whose discipline was proposed have a right to respond and to a hearing, Boucher said. …… The departure of Roy, one of the most senior Foreign Service officers, was seen as a show of support for Keyser, 57, who last week was suspended by Albright for 30 days without pay. Roy was not disciplined. ……"

WorldNetDaily.com 11/30/00 J R Nyquist "…… Not so long ago I interviewed a man employed by one of our intelligence agencies. Let us say the man's name is John. His testimony reflects the feelings of many people who defend this country. ……. The bottom line with John is this: He does not trust Clinton or Gore. In fact, within John's agency there have long been rumors about Clinton's political machine back in Arkansas. There are stories about drug running and money laundering. There are also suspicions, among many, that Clinton and possibly Gore are aligned with longstanding ideological enemies of the United States. ……John went on to discuss the defense problem under Clinton. "It's just obvious the man despises the U.S. military," he observed. "The part I don't understand is how he survived his first term." ….. John didn't explain what he meant by that. Perhaps he didn't have to. Other sources I've spoken to have alleged the existence of secret tapes smuggled out of Eastern Europe in the mid-1990s. These tapes supposedly were used to record the 1970 recruitment of a young American college student by Czech intelligence. Thirty years later the student is president of the United States. An incredible allegation, of course. Totally unbelievable. It is not something that we journalists should dare to repeat, especially since the tapes have disappeared. One is forced to regard it as an unsubstantiated rumor. But maybe that rumor explains John's inability to understand how Clinton "survived his first term." Maybe John knows something more, which he doesn't dare explain. ……. If the story of Clinton's recruitment by the Czechs is true, where are the Czech tapes now? The man who had the tapes, a former communist official, is conveniently dead. It appears that he may have been slowly, very slowly, poisoned. After an investigation into the whereabouts of his family, I learned that his wife is living more comfortably than otherwise might be expected, and a Russian "gentleman" is living directly across the hall -- keeping close watch. ……Make of it what you will. …….I asked John if his colleagues thought Clinton was a Marxist. ……John hesitated a moment, then replied, "It would be surprising to know how many people talk this way." Then he returned to the subject of strange deaths among those who get too close to the Clintons. "I've talked to some police officers involved in this," he said. ….."

WorldNetDaily.com 11/30/00 J R Nyquist "……I asked John if he thought the White House was penetrated by foreign intelligence agencies. "Anyone who thinks we're not penetrated [at the White House] is naive," he answered. Then he explained the problem that some American intelligence officers have with the present administration. Some agents feel that somebody has to be told. "It's a protective mechanism," he explained. "It's much easier to make something disappear if it has very little exposure." ……. One way to make something disappear is to kill the guy who knows too much. "Hits in broad daylight," is how John describes it. In one instance, he had dinner with a colleague and three days later the man was dead. "I don't know what he was doing," said John. "He must have stumbled across something he shouldn't have." …….John also spoke of other murders. He spoke of an agent from another government agency. "It's the same crap," he said. "If Al Gore wins the election the republic won't survive another four years." ……If you think John is exaggerating, you should read Bill Gertz's latest book, "The China Threat." Patriotic individuals like John provided Gertz with access to highly secret documents that reveal Clinton's duplicity and Gore's complete indifference to American security. …….."

Fox News 1/5/01 Robert Burns AP "……President Clinton has signed an order creating a national counterintelligence executive to oversee the government's efforts to protect its most vital national security secrets, administration officials said Friday. …….. The new counterintelligence executive will have a four-member board composed of the director of the FBI, the deputy secretary of defense, the deputy director of the Central Intelligence Agency and a Justice Department representative. The organization will reside at CIA headquarters and will replace the CIA's National Counterintelligence Center, according to an administration official who discussed the matter in advance of the White House announcement. The center was created in 1994 after the arrest of Aldrich Ames, a longtime CIA officer convicted of spying for the former Soviet Union. ……"

Capitol Hill Blue/Yahoo/Reuters 1/4/01 "……President-elect George W. Bush (news - web sites) is likely to ask Central Intelligence Agency (news - web sites) Director George Tenet, a Democrat, to stay on as the country's chief spymaster, Republican sources said on Thursday. The sources, who asked not to be named, said Tenet was well respected from his days on Capitol Hill, when he served as an aide to Democratic and Republican senators, and a favorite of former President George Bush, himself a former CIA (news - web sites) director. …… ``George Senior really likes George Tenet. He's doing a good job ... what's the rush (to replace him)?'' said one source, adding that the Republican president-elect would ``probably'' retain Tenet. ``They may just do nothing and let (him) continue until they're ready to make a change,'' the source said. ………Another Republican source said it would be no surprise for Bush to keep Tenet in place, and that the CIA director is well regarded in Washington not least from his years as staff director of the Senate Select Committee on Intelligence. ......"

AP 1/6/01 "…..An admitted spy testified in an espionage trial that he was given orders from the Cuban government to penetrate U.S. military installations in Florida. Joseph Santos said in court Friday that he and his wife received orders from Gerardo Hernandez to gather information from the U.S. Southern Command, which controls military operations in Latin America and the Caribbean. He said they were largely unsuccessful but filed at least one report on the complex. Hernandez and four other Cubans are on trial in Florida, accused of being members of a Cuban spy ring that targeted military installations and infiltrated anti-Fidel Castro exile groups. …….Santos testified that a Cuban military intelligence document decoded by the FBI contained comments made by Hernandez. He said he was introduced to Hernandez in December 1998 and was told Hernandez would be his supervisor. ….."

Sunspot.net 1/5/01 Laura Sullivan "…… TRANSYLVANIA COUNTY, N.C. - Along the long, twisting road through the Pisgah National Forest, the first sign that something is out of the ordinary is a line of giant transformers. Then, around the bend, a barbed-wire fence, guard shack and surveillance cameras protect what looks like nothing more than another hill of trees and dense shrubbery. …… Few people have been beyond these gates, deep inside the Appalachian Mountains, 50 miles southwest of Asheville. The NSA abandoned the site to the U.S. Forest Service five years ago, leaving behind a deserted minicity in the middle of nowhere. Now, some of the secrets are being revealed. …… Last year, with the base boarded up and close to demolition, the property was transferred to a group of astronomers in exchange for a piece of land in western North Carolina. Over the past year, they have begun piecing together the site's past. ... As they began to install their computers, they found hundreds of miles of top-of-the-line cabling running under every floor. They discovered that the self-contained water and sewer treatment plant could handle tens of thousands of gallons of water at a time and the generator could produce 235 kilowatts of energy - powerful enough to light up a small city. ………In a basement room of one of the larger buildings, they found the entrance to a 1,200-foot tunnel system that connects two of the site's main buildings. ….."

UPI via VNY 1/3/01 Michael Kirkland ".....Despite repeated warnings from both inside and outside the federal government, the United States still does not have any organization with both the mission and the ability to coordinate the overall defense of the country's vital electronic infrastructure. ....."

CNSNews.com 12/26/00 Lawrence Morahan "......For more than 30 years, the Communist government in Beijing has been engaged in large-scale science and technology spying on the U.S. defense industry, a Chinese government manual obtained by the Pentagon reveals. More than 80 percent of all Chinese spying focuses on open-source material obtained from government and private-sector information, The Washington Times reported Tuesday, citing the 250-page report by two 30-year Chinese spy veterans........The remain