DOWNSIDE LEGACY AT TWO DEGREES OF PRESIDENT CLINTON
SECTION: STATUS OF US INTELLIGENCE
SUBSECTION: PIERCING SECURITY
Revised 1/8/01

 

PIERCING SECURITY

Post-Gazette 1-23-99 Jack Kelly ".The odds are that an American city will be destroyed by a nuclear weapon within ten years, an architect of the U.N. weapons inspection program in Iraq predicted yesterday. Ambassador Robert Gallucci gave a chilling overview of the parlous state of nuclear proliferation at a luncheon sponsored by the World Affairs Council at the Duquesne Club...Gallucci believes the breakup of the Soviet Union and the breakdown of order in Russia and former Soviet republics has made rapid nuclear proliferation inevitable.. For years, whenever the CIA director was asked by a member of Congress how long it would take for Iran, Iraq, or North Korea to build a nuclear weapon, he would say, "about ten years," Gallucci said. "It takes about nine years to build up the facilities [required to produce fissile material] from scratch, and another year to build an implosion device." The correct answer now, Gallucci said, is: "I don't know, senator. They may have it already.".."

Times of India 2/18/99 Ramesh Chandran ".In 1995, American intelligence analysts came into the possession of a ``top secret'' Chinese nuclear weapons document from the late 80s and discovered something eerily familiar. According to a report in The Washington Post, these designs were ``uncomfortably similar'' to the US Trident missile warhead which then was amongst the latest in this country's strategic arsenals. And a weapon that had been designated ``top secret'' to boot. In the aftermath of that unsettling discovery, the FBI launched a series of counter-intelligence operations focussed on Chinese activity which continues even today. The heightened counter-espionage operations specifically targeted nuclear scientific centres such as the Los Alamos and Sandia National labs in New Mexico and Lawrence Livermore National Laboratory in California. According to unnamed officials cited in the Post, US experts were analysing a string of nine Chinese nuclear tests between 1990 and 1995. And what ``tricks'' might Beijing have conceivably learnt? Miniaturising nuclear warheads.."

Kanwa Information Center 2/10/99 Kanwa News Freeper Jolly "...On February 2, the Far East Military Tribunal of Russia convicted a number of Russian and Chinese citizens of stealing and illegally selling the navigation system of Russia's SU27 fighter plane to China. Those who were involved in this espionage case included the former major of the Intelligence Bureau of Russia's Far East Military Region and the employees of the Far East Plane Plant that produced the SU27 for China. The above espionage group even extended its activities to the air force base and hired the low-ranking officers of the base to steal the navigation equipment and the other systems of the SU27 planes that now serve the Russian army...."

ST Recent events in the Middle East that are causing concerns: after the US was frustrated that Saudi Arabia announced no non-Saudis were involved in the Khobar Towers bombing, the Saudi's are leaking that there were foreigners involved - the Iraqi Vice President Taha Yasin Ramadan said the UN Security Counsel Resolution 833 concerning the Iraqi-Kuwaiti border "Legally, it is worthless." - Saudi Foreign Minister Prince Saud al-Faisal called on Iraq to honor Resolution 833, the principles of the Arab League and regional security agreements - the Saudi-Egyptian meeting took place to tackle the oil price crisis - Syrian Foreign Minister Faroug al-Shara met with Saudi and Egyptian counterparts on the stalled Middle East peace process - Egypt joined the Syrian-Iranian call for an "Arab NATO" - and UN inspectors claimed to have found nerve gas residue on destroyed Iraqi warheads.

7/8/98 New York Post Maggie Haberman "Russia is training troops to kill American leaders in the event of war - and staking out sites near New York City to plant nuclear "suitcase bombs," a former Soviet agent charges. The elite military squadrons would also destroy power stations and dams - and pinpoint the secret Air Force One landing sites as targets, former Russian military intelligence Col. Stanislav Lunev claims in a book that hit stores yesterday. Lunev, who says he's emerging after six years in the FBI's witness protection program, wrote the book to caution America about "the dirty tricks that can be played against her.". CIA and FBI officials wouldn't comment on the colonel or his claims."

RATFOR Systems Inc. 8/10/98 "The bombing of U.S. embassies in Kenya and Tanzania was the major international event last week. .First, we do not know from direct evidence who was responsible. We assume that U.S. intelligence agencies also don't know who carried out the bombings, because had they known, we assume they would have prevented it. Second, if they uncovered the perpetrators in the few days since the bombings occurred, this would indicate that they had a great deal of information on hand already, and had failed to draw proper conclusions prior to the attack. Therefore, we assume that U.S. intelligence is also scrambling to figure out who was responsible. To put it another way, barring the unthinkable, which was that U.S. intelligence knew of the bombings but failed to stop them, it follows that the bombers were either clever enough to evade detection by the world's most sophisticated intelligence agencies, or that they represent a completely new element not on any watch list. Because it is a given that all significant terrorist threats are under constant scrutiny by U.S. intelligence, the bombers were either very new, very good, or both.."

Associated Press 7/3/98 Robert Burns ".In a private ceremony not announced by the CIA, retired spies John "Jack" T. Downey and Richard G. Fecteau received a prestigious Director's Medal for surviving two "dark decades" in Chinese prisons, the longest any CIA officers have been held captive abroad and lived to tell about it..."

New York Times 3/1/99 David Sanger "…Federal agents in California quietly arrested a Chinese citizen last week and charged him with trying to obtain a component vital to missile guidance systems. Officials said the arrest shed light on what many in Washington say is an effort by China to smuggle U.S. technology to improve the accuracy of its weapons. The Customs Service has yet to make a public announcement of the arrest of the man, Yao Yi, but federal officials and a criminal complaint filed in U.S. District Court in Boston say Yao tried to buy fiber-optic gyroscopes from a Massachusetts defense contractor. After the State Department refused to approve the deal, Yao dealt with another Boston company, which promised to help get the gyroscopes out of the United States. But that company was a dummy corporation set up as part of a sting operation by the Customs Service…. One federal official said that using this kind of gyroscope for a railroad project "would be like flying an F-14 to the grocery store." The arrest of Yao, who is believed to be 33 years old, came only hours after the Clinton administration, in an unrelated case, decided to prevent Hughes Electronics from exporting to China a $450 million communications satellite, ordered by a Singapore consortium with links to officers of the People's Liberation Army…. In the gyroscope case, a man identified by authorities as an associate of Yao -- Collin Xu, a Canadian citizen of Chinese origin -- was arrested two weeks ago in Boston after he allegedly took delivery of the fiber-optic gyroscopes -- all but one of which was a dummy -- and he is being held without bail….Two such applications were filed in May 1998, one listing the end user as ZheJiang University in China, and another listing the final user as Changsha Rail University in Hunan province. The applications were immediately denied by the State Department, which noted that China is a "prohibited destination" for the gyroscopes. In August, a new order was received by the Massachusetts company for nearly identical equipment, listing a new company as the purchaser: Micro Techland, in Montreal. An exemption to the State Department licensing rules permits the shipment of some types of equipment without a license to Canadian firms, for use in Canada. …"

WorldNetDaily.com 3/1/99 David M. Bresnahan "…A former member of U.S. Special Forces, who has also been involved in many intelligence operations of the Central Intelligence Agency, FBI, Internal revenue Service and others, is concerned about the threats and how the military might respond. "Last year in the February time frame, we had two teams of special operators in Afghanistan who were right on top of Osama Bin Laden. We could have taken him out any time we were given the word, but the president would not allow it," the source, speaking on condition of anonymity, told WorldNetDaily. "He didn't have the guts, or the will, or the reason to do it. Then he pulls this stunt sending those missiles over there," he complained. The Special Forces source believes the U.S. attacks in August 1998 on what President Clinton called known terrorist facilities in Afghanistan and Sudan were a major mistake. The U.S. informed the Pakistan government of plans to fire missiles through their air space. The source says that mistake tipped off Bin Laden. "The guy who sits on the right hand of the Pakistani president is the head of Pakistani intelligence who has on his right hand Osama Bin Laden. I mean that was the dumbest thing. "The whole thing has been a debacle. It's destroying our military," explained the source…."

7/1/98 John McCaslin Washington Times "The U.S. Army recently looked into who came calling the most to its Web site, and it certainly was not prospective recruits. "It was not the 82nd Airborne Division, it was not the Air Force, it was not the Navy, it was not the Marines," said Rep. Jim Gibbons, Nevada Republican who sits on the national security and select intelligence committees. "It was the communist Chinese," he revealed. "That is right, the United States Army Web site is most often visted by the People's Liberation Army." ."

WorldNetDaily.com 3/1/99 David M. Bresnahan "…The threat of a terrorist strike within the U.S. is very real, and weakness because of Y2K (perceived or real) will provide the opportunity many different forces may be looking for. Bin Laden is known to be planning strategic attacks that may come at the start of the new year. Sam Cohen, one of the architects of the neutron bomb, is now retired and has been sounding the word of warning for many years. He claims that terrorists could carry a small nuclear device into populated areas and detonate it with no warning. A former Russian intelligence agency official also warned that the U.S. is in danger of nuclear attack from "suitcase bombs" in the hands of terrorists. Col. Stanislav Lunev was kept from the press and the public, and concealed under a black shroud when he was brought secretly to meet with the House National Security Committee Aug. 4, 1998. Lunev, once a Russian spy, is now living in the U.S. under protection as a defector. He claims Russia had the small nuclear devices described by Cohen. He said it was his job to devise a plan of attack against the U.S. using the hand-carried bombs. Lunev says over 80 of the bombs are now missing. It is believed the devices were sold on the black market to a terrorist organization. "There's no doubt in my mind that they have been sold to a terrorist with a big bank account," said Cohen. "There's no doubt in my mind that the warheads have been around in the U.S." Cohen stated that he believes terrorists have the bombs and are stationed in many parts of America just waiting for the orders to detonate them…."

WorldnetDaily 3/2/99 Charles Smith "…One fact remains above the sex, sordid lies and dangerous phone calls; the White House was penetrated by Chinese Army agents. COSTIND Col. Lui met with Bill Clinton in the White House after donating money through Johnny Chung. The Chinese Army engaged in the most successful espionage effort of the twentieth century. Of course, they picked an easy target, Bill Clinton…. Defense experts are already tracing the vast array of advanced U.S. military technology sold to China in the missile arsenals of Iraq, Iran and North Korea. In Feb. 1999, the repercussions of the Chinagate scandal shot-down $500 million worth of satellites for communist China. The cancellation of the HUGHES sale to Asia Pacific Mobile Telephone (APMT) is a victory for western national security. APMT, the buyer of the Hughes satellites, is reported to be half owned by COSTIND, the same Chinese Army unit that penetrated the White House. According to the Defense Dept., the Hughes satellites were equipped with a sophisticated 40 foot antenna that could intercept U.S. military communications. The APMT satellites sales also included secure, encrypted, voice and data communications…."

Chattanooga Free Press 3/02/99 Editorial Freeper newsman "…The United States takes too soft a view of the form of treason involved when our citizens sell our military secrets to foreign nations. David Sheldon Boone, 46, a former National Security Agency intelligence analyst, has been sentenced to 24 years in prison -- do you think he'll serve that long? -- for selling top secret documents related to tactical nuclear weapons to the former Soviet KGB for $60,000…."

Electronic Telegraph http://www.telegraph.co.uk 3/04/99 Hugo Gurdon Hugh Davies Freeper A Whitewater Researcher "… EXCERPTS: "MOSSAD, the Israeli intelligence agency, taped...Clinton's phone sex sessions with Monica Lewinsky and used them to prevent the FBI investigating a Tel Aviv mole inside the White House, according to a new book...the book claims Mr Clinton's illicit fling compromised American security, and the Israeli agent - codenamed Mega - is still in the White House....Gordon Thomas, author of Gideon's Spies - the Secret History of the Mossad, says a senior Israeli intelligence officer explicitly told him that the spy agency had recordings of the President and Miss Lewinsky talking erotically on the telephone between the White House and her home in the Watergate building...the Israelis let the FBI know about the tapes. In his report to Congress, Kenneth Starr, the independent counsel, suggests that Mr Clinton was aware of the phone tapping...Mossad could not bug the White House, which is electronically secure, so when it received a tip-off about the Clinton-Lewinsky telephone fling, it tapped her home phone instead..."

OIC Report Narrative Section VI SubSection E Paragraph 4 Freeper DoughtyOne "…According to Ms. Lewinsky, she and the President had a lengthy conversation that day. He told her that he suspected that a foreign embassy (he did not specify which one) was tapping his telephones, and he proposed cover stories. If ever questioned, she should say that the two of them were just friends. If anyone ever asked about their phone sex, she should say that they knew their calls were being monitored all along, and the phone sex was just a put-on. (456) 456. Lewinsky 07/30/98 at 16…."

Drudge Report/ABC News 3/5/99 Barbara Starr "…But in an interview with ABCNEWS, Deputy Defense Secretary John Hamre, who oversees all Pentagon computer security matters, confirmed the attacks have occurred over the last several months and called them ³a major concern.² ³This is an ongoing law enforcement and intelligence matter,² said Hamre, who last month briefed the House Armed Services Committee on the attacks in a classified session…. Officials believe some of the most sophisticated attacks are coming from Russia. Federal investigators are detecting probes and attacks on U.S. military research and technology systems ‹ including the nuclear weapons laboratories run by the Department of Energy. What is not clear, however, is whether the attacks are coming directly from Russia or whether the probes are coming from other countries that are simply routing through Russian computer addresses to disguise their origin…."

New York Post 3/7/99 Niles Lathem Freeper Plummz "…The United Nations' delegates lounge is the Rick's Cafe of the 1990s. . . . Not long ago, the U.S. shared top-secret information about its spy satellite system during a U.N. Security Council debate and inadvertently exposed a weakness in its capabilities. Intelligence analysts believe India used that information to deceive the U.S. intelligence community last year when it conducted a surprise nuclear-weapons test. . . . Sources said Somali warlord Mohammed Fariq Aidid learned the details of a planned U.S. operation to capture him thanks to a leak in the office of U.N. peacekeeping forces in New York. . . . U.S. intelligence agencies strongly suspect the leak came from an agent for a NATO ally that had a different strategy for stabilizing Somalia. . . . What has yet to emerge, U.S. officials say, is the extent to which the Iraqis infiltrated the same program at U.N. headquarters here - giving Hussein advance knowledge about the sites arms inspectors were planning…"

Reuters [OL] 3/6/99 Laurence McQuillan "… ``Currently there is an ongoing investigation to determine if there was criminal conduct and we continue to assess the implications for national security,'' said White House National Security Council spokesman David Leavy. According to other administration sources, federal agents as recently as this week questioned a suspect who may have been involved in stealing top secret documents from the National Laboratory in Los Alamos, New Mexico, and passing them to Beijing…."

ABCNEWS.COM 3/5/99 Barbera Starr "…The Pentagon’s military computer systems are being subjected to ongoing, sophisticated and organized cyber-attacks, officials there tell ABCNEWS…. The investigation is looking at a pattern of attacks that has not been seen before. Officials tell ABCNEWS there are several matters under investigation, and it is not clear to what extent the cyber-attacks are all linked….Officials believe some of the most sophisticated attacks are coming from Russia. Federal investigators are detecting probes and attacks on U.S. military research and technology systems — including the nuclear weapons laboratories run by the Department of Energy…. The U.S. National Counterintelligence Center, or NACIC, which monitors espionage activities worldwide, has been tracking the threats posed by lack of official security systems on Russian computer networks for some time. A September 1998 NACIC report noted Kremlin statements that foreign secret services were regularly penetrating Russian computer networks. U.S. officials believe, however, that there may be an even more disturbing problem: Foreign government hackers may be getting help from within the U.S. government. We are increasingly concerned about those who have legitimate access to our networks — the trusted insider," …"

Reuters 3/7/99 "…Senate Intelligence Committee chairman Richard Shelby Sunday criticised the Clinton administration for moving too slowly to tighten security after a major leak of nuclear secrets to China was discovered in 1997. "We've been pushing, we've been prodding the administration to do more, to tighten up security,'' the Alabama Republican said on the NBC program "Meet the Press.'' "I think they're beginning to but it's been a long time,'' Shelby said. "They waited a long time. They could have done more. They could have done more immediately ... It will damage, if it hasn't already damaged our national security in a big, big way.'' Shelby said Congress would hold hearings as soon as possible to look into the leak of secrets to China in the mid-1980s and the administration's subsequent investigation. "The attitude of lax security is going to do more damage to our national security than what we've seen in these newspaper articles,'' Shelby said. …"

"NBC NEWS’ MEET THE PRESS." 3/7/99 Freeper JustPiper "…Good morning, sir. SEN. SHELBY: Good morning, Tim. MR. RUSSERT: Senator Shelby, Paul Redman, the former CIA spy hunter, says that this case is worse than Aldrich Ames, the spy who sold secrets to the Soviet Union, and as bad as the Rosenbergs, when the Rosenbergs stole nuclear secrets before World War II. If, in fact, these charges, allegations, are true, how serious is this? SEN. SHELBY: If, in fact, to use your words, that these allegations are true, it’s very, very serious. It’s probably the worst breach that we’ve had in many, many years. MR. RUSSERT: Do you have any evidence of other Chinese espionage going on over the last few years? SEN. SHELBY: Well, Tim, in America today there’s a lot of lax attitudes toward national security, in our labs everywhere and other places, too. A lot of people believe since the demise of the Soviet Union that we don’t have threats anymore, which is wrong. I believe, myself—as a matter of fact, I know as chairman of the committee—that the attitude of too much openness is not paying off for us. It’s paying off for countries like China and others in the world who are continuing to try to get our secrets and obviously are getting some…..MR. RUSSERT: Now, the chief of intelligence for the Department of Energy says that he was ordered last year not to tell Congress about this because there was concern that critics would use this information to criticize the Clinton administration policy of engagement towards China. SEN. SHELBY: If that is true, this would be very bad, bad news and bad policy, moreover. I hope that this is not true, but we will have the gentleman before the committee and we’ll have him under oath. We’ll find out what’s going on here as far as the exact step-by-step allocations, but I can tell you, Tim, the attitude of lax security is going to do more damage to our national security than what we’ve seen in these newspaper articles and on your TV this morning…"

New York Times 3/8/99 Erik Eckholm "…The Foreign Minister, Tang Jiaxuan, gave the first official response to accusations of nuclear espionage Sunday at a previously scheduled news conference. The assertions, circulating within the American Government, were reported in The New York Times on Saturday…Today Tang said, "I think the report by The New York Times was irresponsible and unfounded." The espionage assertions, Tang noted, followed other recent accusations that China has gained military technologies through commercial satellite transactions. "There are always some people trying to obstruct normal trade relations between the United States and China, including the export of high-technology items," he said. "This will not be beneficial to the interests of the United States." …"

NY Times OpEd 3/8/99 William Safire "…Throughout the 1996 Clinton campaign for President, China's agents of influence had the run of the White House as they raised millions for the Clinton campaign. Chinese military intelligence officials were waved in without clearance. U.S. executives contributed megabucks as they lobbied for easier approval of sales of sensitive technology to Beijing. In the midst of this -- in April of 1996 -- a Department of Energy official informed President Clinton's deputy national security adviser, Samuel Berger, (1) that China had probably stolen our secrets of making warheads small enough to enable long-range missiles to pack multiple nuclear punches, and (2) that the suspected spy was still at work in the Los Alamos laboratory in New Mexico. Mr. Berger, who sat in on most of the political meetings with Clinton's Asian fund-raisers, did nothing. The internal security division of the Department of Justice apparently did not ask a court for wiretap authority under the Foreign Intelligence Surveillance Act. At Reno Justice, investigating any Chinese penetration is a no-no Over one year later, after news stories and columns about Clinton's "Asian connection" had stimulated law enforcement officials and a Senate committee to bestir themselves, F.B.I. Director Louis Freeh and Director of Central Intelligence George Tenet went to the office of Energy Secretary Federico Peña. "Louis and George read him the riot act," a meeting participant tells me, "about lax security at Los Alamos." But nothing happened for a year and a half. Senator Fred Thompson's hearings on the Asian connection were politicized and truncated by John Glenn and Tom Daschle. Not until late 1998, when a bipartisan House select committee under co-chairmen Chris Cox and Norman Dicks began asking questions about Chinese espionage, did a new Energy Secretary begin to lock the barn door…"

Houston Chronicle 3/13/99 James Brooke NY Times "…Within two weeks, Peter Lee, a Taiwan-born physicist who once worked at the nuclear weapons laboratory here, will complete a one-year sentence to a halfway house in California. … Peter Lee's involvement with China dates back to 1981, federal prosecutors say, when he began a correspondence with Chinese scientists that mounted to more than 600 letters and e-mail messages by 1997, the year of his arrest. After his arrest, he pleaded guilty to passing classified national defense information to Chinese scientists on a visit to Beijing in 1985. He also pleaded guilty to lying to a government agency after he described on a security form a May 1997 visit to China as a pleasure trip. In reality, Lee, then a researcher for a U.S. military contractor, met extensively with Chinese scientists. "U.S. intelligence analysis indicates that the data provided by Dr. Lee was of significant material assistance to China in their nuclear weapons development program," the Department of Energy said in a presentencing statement submitted last year to Federal District Judge Terry J. Hatter in Los Angeles…. "Lee was a little ahead of his time," said Christopher Paine of the Natural Resources Defense Council…."

NEWSMAX.COM 3/14/99 Andrea Widener "…Since it opened in 1952, Livermore lab has had several espionage incidents, though none as widely publicized as the New Mexico researcher fired this week for allegedly passing secrets to the Chinese in the mid-1980s. The Los Alamos story has dredged up a 10-year-old Lawrence Livermore case, which drew top billing on CBS Evening News and a mention in the Washington Post…. In the revived Livermore case, Chinese scientists allegedly used stolen secrets to build and conduct a 1988 test of a neutron bomb, which would kill soldiers with radiation without destroying nearby buildings. After a two-year FBI investigation, called Tiger Trap, a lab scientist resigned. "The only thing I would say about the incident in the 1980s at Livermore is that as far as we know it was false and it was a 10-year-old story," Bellaurdo said…. None of the reported espionage incidents at the weapons laboratories -- which also includes Sandia's labs in California and New Mexico -- involve foreign visitors stealing secrets. All of the people who allegedly revealed secrets were naturalized American citizens…. "

MSNBC Website 3/16/99 Robert Windrem "….THE DOCUMENTS, obtained under the Freedom of Information Act by intelligence historian Jeffrey Richelson for NBC News, revealed new details about the extent of Chinese penetration into the nuclear research labs. They also portray a clear concern as early as 1991 about Chinese spying, both at the national weapons labs and when scientists presented papers at international seminars in China…. Most of the documents, published between 1991 and 1995, were unclassified, although some were classified "for official use only," the lowest level of classification…. E-mail and the threat it posed to the DOE’s security regulations was of particular concern. For instance, an Office of Counter Intelligence bulletin produced in 1994 notes "e-mail’s versatility and simplicity can contribute to undermining DOE’s ability to protect sensitive and proprietary information ... in many cases, the government exercises little or no control over email, and some employees use it to discuss sensitive and proprietary information." Specifically, in 1994, the bulletin noted that some lab employees receiving requests for information from sensitive countries have responded "instantaneously" to such inquiries "rather than follow established guidelines."… Another bulletin, from 1993, discussed the possible use of telephones at Los Alamos lab "to pass classified, sensitive information ... the situation at the laboratory in question places DOE in the potentially awkward position of paying to facilitate the possible illegal transfer or its technology." … The bulletin added that many of the calls involved computer modems….. ". In 1993, the counter-intelligence bulletin reported on four incidents where scientists travelling to China reported suspicious activities: "A traveler’s luggage was lost for five days upon arrival at his location [in China.] …. "A traveler believes that his hotel room was entered while he was out and that personal items were tampered with….. "A traveler returned to his hotel room to find that his tape play had been advanced at least 15 minutes from where he knew he stopped the tape. The tape in question was a language tape. "A traveler believes he was spotted and assessed. He believes [his hotel] in Beijing is set aside from Western businessmen attending conferences and the rooms may be bugged." ….The next year, 1994, the office took advantage of CIA spy Aldrich Ames’ arrest to warn its staff that Russian spying pales in comparison to Chinese. "Some counter-intelligence experts say that for every Aldrich Ames, there could be 10 to 100 Bin Wu’s," referring to a Chinese spy convicted of stealing U.S. technology…."

Wall Street Journal 3/17/99 James Lilley a former CIA station chief and ambassador to China "…In 1987, Chinese United Nations personnel employed Chinese-American businessmen in New Jersey to obtain TOW2 antitank missiles, F-14 fighter plane blueprints, and air-to-air missile information. These were to be smuggled out as refrigerator parts. Four of the businessmen were arrested, and one of the diplomats was forced to flee the U.S. In 1992, Ben Wu, an agent of the Ministry of State Security stationed in Norfolk, Va., tried to smuggle second-generation night vision equipment to China. He is currently in a Pennsylvania jail. In 1985, Larry Wu Tai-chin, an employee of the Central Intelligence Agency, was arrested after working 41 years for Chinese intelligence. Mr. Wu was caught by a brilliant CIA penetration operation of the MSS. If this is discouraging, the Clinton administration's handling of the latest scandal is even more so. The president claimed that he "moved quickly and decisively" when he learned of the security breach. Yet it took 11/2 years for the Energy Department to act on the FBI's recommendation to reinstate background checks for visitors to Los Alamos, and Mr. Lee retained his security clearance for over a year after he became the prime suspect. Administration officials also withheld information from Congress for fear that the disclosure could adversely affect its policy toward China…. "


AP 3/18/99 "…Nuclear weapons secrets could leak to China inadvertently, FBI Director Louis Freeh says, and the Energy Department is taking steps to make sure that a casual e-mail or fax doesn't give away sensitive military secrets…..Freeh told a House hearing Wednesday that the FBI still is trying to determine whether a leak to China of weapons information from Los Alamos National Laboratory in New Mexico occurred through the actual passing of documents or simply from viewing and memorizing information that was seen or read. Freeh said he could not rule out information getting into Chinese hands by ways in which a person ``is not intending to transmit secret information.'' ….."

Capitol Hill Blue 3/20/99 "… At his first press conference in a year, President Clinton claimed he knew of no other espionage at U.S. nuclear weapons labs. Top security officials, however, say otherwise and they said the President also knows better…. "Los Alamos isn't the only place this has happened," one said, "and the President knows that. In closed-door briefings on Capitol Hill over the past week, key lawmakers were told of the expanding investigations, including one case of suspected espionage at the Argonne National Laboratory, which has facilities in Illinois and Idaho, the officials said. Congressional sources said the Argonne probe involves the possible disclosure to China of neutron bomb technology by an Asian-American scientist. The congressional officials said the Argonne case is believed to have begun before Clinton took office, but investigators are checking into whether the loss of sensitive data may have continued into his presidency…. One senior congressional official said the unidentified Argonne employee has been under clandestine monitoring as counterintelligence officials try to develop their suspicions into a solid case. The Argonne lab, oldest of the nation's nuclear research facilities, is primarily devoted to pure scientific research. But weapons labs such as Sandia and Los Alamos conduct weapons-related work at Argonne facilities….."

Newsweek 3/29/99 John Barry Gregory Vistica "…The news was worse than the CIA had imagined. Last week, in response to recent reports that China may have stolen nuclear secrets from Los Alamos and other U.S. weapons labs, President Clinton ordered a preliminary "damage assessment" to determine just how much Beijing knows about the American nuclear program…. NEWSWEEK has learned that when the CIA showed the material to a team of top nuclear-weapons experts, they "practically fainted." Chinese scientists routinely used phrases, descriptions and concepts that came straight out of U.S. weapons labs. "The Chinese penetration is total," says an official close to the investigation. "They are deep, deep into the labs' black programs." U.S. officials believe that China may have acquired design information over the last two decades about seven U.S. nuclear warheads, including the neutron bomb created in the early 1970s. They may also have stolen secrets about U.S. efforts to devise a nuclear weapon tailored to create an electromagnetic pulse—a man-made lightning bolt that would short out anything in an enemy nation that uses electricity…. They do not believe it was a foreign visitor to the labs, or leaks through U.S. allies—none had access to the closely guarded material. Which leaves an unsettling possibility: "This was done by American citizens," says one source close to the investigation. Yet officials say only a handful of top insiders at the labs and the Energy Department even knew about some of the secret programs, which has left the close-knit nuclear community wondering if a colleague could have done the unthinkable…"

Fox News 3/24/99 "…Los Alamos National Laboratory chose Wen Ho Lee, a scientist who was already under investigation as a suspected spy for China, to lead a sensitive nuclear weapons program in 1997, several senior government officials told The New York Times Wednesday. Lee then hired a postdoctoral researcher who was a Chinese citizen and who has since disappeared, intelligence and law-enforcement officials told the newspaper…. Although the FBI had said a wiretap on Lee would enable the agency to keep a close watch on the computer expert, the bureau never received approval from the Justice Department for electronic monitoring, officials told the newspaper. In September 1997, FBI Director Louis Freeh told senior Energy Department officials that the bureau did not have enough evidence to arrest Lee and there was no longer any investigative reason to keep him in a sensitive position, law-enforcement officials told the newspaper…."

AGENCE FRANCE-PRESSE 3/23/99 Freeper Thanatos "…Beijing has reportedly seized two American cruise missiles which failed to detonate in last year's attack by Washington on suspected terrorist bases in Afghanistan. United States intelligence agencies were worried that the mainland might try to copy the weapons' guidance and avionics technology, Newsweek magazine reported. The cruise missiles were reportedly obtained by Beijing after US air strikes against sites linked to alleged terrorist Osama bin Laden in August…."

Investor's Business Daily 4/12/99 Paul Sperry "…Thanks to recent spying at U.S. labs, China may now have the ability to tip its nuclear missiles with several warheads. And it may have the know-how to perfect a neutron bomb, which can kill troops and knock out electronics without destroying buildings. More, China may have snatched the secrets to making a so-called electromagnetic gun, which shoots a pulse that can short computers and power grids. These are the reported leaks. More may come to light later this month when a select House panel releases declassified parts of a report on Chinese espionage. The bulk of the report is said to focus on lab leaks - parts the White House is trying to block. Not only is China stealing U.S. nuclear secrets, it's aiding the weapons programs of nuclear wannabes like Pakistan and Iran. In essence, a nuclear arms race has started in South Asia and the U.S. is sitting on the sidelines - unable to test weapons and, therefore, hamstrung in its efforts to design new ones…

Wall Street Journal 4/8/99 David Cloud "...The Clinton administration received fragmentary intelligence reports in 1996 that China had acquired information from a U.S. source on producing a neutron bomb, a senior administration official said. An investigation by the Federal Bureau of Investigation and the U.S. Department of Energy has failed to turn up a suspect or much additional information about the source of the security breach, other than that Beijing acquired the information in 1995. The neutron bomb gives off high levels of radiation and was developed by the U.S. in the 1970s as a weapon against the Soviet Union. The White House was briefed by the Energy Department, which oversees nuclear-weapons security, in 1996 and 1997 on the intelligence suggesting that China had received neutron-bomb information. Because there were few specifics about the source, no additional security steps were taken, the administration official said. "There was no way of knowing where the information might have come from," the official said.... "

Associated Press 4/22/99 H Josef Hebert "...Despite security concerns, scientists at federal weapons labs must be allowed freedom to exchange ideas within the scientific community, the director of the Los Alamos National Laboratory said Thursday..... But John C. Browne, who became director at Los Alamos in 1997, said his scientists "know how to draw the line'' when talking to outsiders and should be given some leeway. "It is a campus. It's a campus behind a fence,'' said Browne during a hour-long meeting with reporters. "We can't just put everybody behind a fence and lock them up and let them do their job.'' .... He said he's still not convinced that a Los Alamos computer scientist, who has been the target of an FBI investigation for three years, gave the Chinese the W88 information. The scientist has not been charged, but was fired for security violations earlier this year. "It's still not clear from what I read whether our guy was the guy that did this,'' said Browne..... "We've got to demonstrate to people that the lab ... can be trusted. The thing that hits me most is a feeling that the country no longer trusts Los Alamos,'' said Browne...."

AP 4/22/99 "...China is a few years away from fielding improved nuclear weapons with the help of classified information gained by spying on the United States, according to a U.S. intelligence damage assessment of Chinese espionage. In addition to gaining improved weaponry, including lightweight warheads for use on multiple-warhead ICBMs, China may also be more likely to spread its older weapons technology to other countries as its own weaponry improves, a U.S. intelligence team concluded. In a long-awaited damage assessment, administration officials disclosed Wednesday for the first time that China gathered classified information not just on the W-88 warhead and the neutron bomb but on ``several'' modern U.S. warheads - particularly ``re-entry vehicles,'' the nuclear weapons mounted on multiple-warhead rockets. The assessment made clear that China's espionage efforts were likely to continue.....But a senior intelligence official speaking on condition of anonymity said the multi-agency assessment team predicted in its classified report that China would field improved weapons within a few years. ...Senate Intelligence Committee Chairman Richard Shelby said the briefing Wednesday made it clear that Chinese spying continued into the Clinton administration. Clinton has said he knows of no espionage breaches at the weapons labs during his tenure. ``It confirms my worst fears,'' Shelby, R-Ala., said of the damage assessment. ``We made it easy for the Chinese because of weak security at our national labs. ... We took too long to find out what was going on and we still don't know how deep and wide the problem is.'' ...."

Washington Times 4/22/99 Bill Gertz and Nancy Roman "...The official said details of the compromise were outlined in a Chinese document that a Chinese official gave to the CIA in 1995. "Some of that information could only have been obtained from espionage," the official said at a background briefing on Chinese spying at U.S. nuclear weapons laboratories. "That's why we feel strongly about making the statement about espionage. . . .The damage assessment was ordered in March by CIA Director George J. Tenet based on the recommendations of a special House committee headed by Rep. Christopher Cox, California Republican. Its report, submitted to Congress Jan. 1, is classified, and Mr. Cox has been working since January to get the administration to declassify it. He and the administration have been wrangling over which sections of the 700-page report can be made public. Sources close to the negotiations over the report said if the White House does not agree to release the report before the committee's authority expires, parts of it approved by the administration will be released anyway.....

Washington Times 4/22/99 Bill Gertz and Nancy Roman "...According to a one-page summary of the key findings of the damage assessment, titled "Implications of China's Acquisition of U.S. Nuclear Weapons Information and the Development of Future Chinese Weapons":

* "China obtained at least design information on several modern U.S. nuclear re-entry vehicles, including the Trident II (W-88)." Re-entry vehicles are ballistic missile warheads.

* "China also obtained information on a variety of U.S. weapon-design concepts and weaponization features, including those of the neutron bomb."

* The full extent of weapon details stolen by Chinese spies is not known, and it is not known whether China stole weapon design documents or blueprints.

* China probably used the warhead design information to build similar warheads, rather than seeking to replicate U.S. warheads.

* The nuclear warhead data "probably accelerated its program to develop future nuclear weapons" and "allowed China to focus successfully down critical paths and avoid less promising approaches to nuclear weapons design."...."

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...."

World in Review 4/99 Dr. John Coleman "...Intelligence sources indicate that China has infiltrated its most reliable agents, especially selected from crack units of the People's Liberation Army's "Quanto Bodui" unit which consists of 200,000 specially trained men. Although totally trained in espionage, these agents are playing a different role, somewhat unorthodox in style. However, they still come under the control of Qingbaouoju ~military intelligence~ headed by general Ji Shengde. The idea of having mobile units especially trained in martial arts, demolition, special weapons, was taken from GRI ~Russian military intelligence~. The first units began their training in 1982 at the Beijing Police School. Kung fu is taught, and the individual spy is told to have a great reverence for it.... Their nick-name "chen diyu" translated into English means, "fish in deep water." After a course in business management, and business etiquette, the Spetznas are sent from Hong Kong to Toronto, Vancouver and Mexico City, where they pose as refugees from mainland China who fled from Hong Kong after China took over the former British colony. After infiltrating into the U.S. they put on a smooth businessman veneer, and set themselves up in communities where they blend in. They are careful to avoid any locations where organizad crime is established. They engage in espionage, and mental preparation for the time when they may have to be engaged in sabotage in the event of hostilities between China and America. By all accounts, they are among the best spies China has in the United States. Although we cannot be sure of it, "chen diyu" units may have been engaged in nuclear secrets spying at US centers such as Los Alamos and Lawrence Livermore. Qingbaouoju had reason to believe that security was lax at these places while John Deutch was CIA chief. It is believed that some "deep fish" came as visitors.... The Chinese scientist Wen Ho Lee, who worked at Livermore, actually traveled to China to deliver a paper at a professional conference, believed to have been arranged by general ji Shengde. As required by the Energy epartment regulations, Lee was duty-bound to report contacts with Chinese scientists, but apparently his failure to do so, went unnoticed by the Energy Depaartment and the CIA. Most significantly, Keith Furz of the GAO, told a subcommittee of the House national security committee that many of the problems encountered in 1988, WHICH INCLUDED LIVERMORE BEING UNABLE TO ACCOUNT FOR 10,000 MISSING DOCUMENTS), were still in evidence in 1991 and onwards...."

The Age 5/17/99 PAUL DALEY CANBERRA and JENNIFER HEWETT "... The Federal Government has launched a top-level inquiry into the security of Australia's spy networks after the United States charged a rookie intelligence expert from Melbourne with trying to sell US defence secrets to another country. Jean Philippe Wispelaere, 28, appeared in a US court yesterday accused of selling the secrets to an FBI agent posing as a spy from another country...... It is alleged that Mr Wispelaere received $US120,000 ($A180,000) from the FBI agent in exchange for hundreds of classified US documents, which he stole while working for Australia's Defence Intelligence Organisation in Canberra for six months until last January. He was arrested in Washington on Saturday after a joint operation by the FBI, the Australian Federal Police and the Australian Security Intelligence Organisation...... The sources said that some of the stolen material related to the procurement of biological, chemical, nuclear and ballistic missiles by Asian countries and America's theatre missile defence program in North Asia. While neither America nor Australia would name the country to which Mr Wispelaere allegedly tried to sell the material, sources said he was believed to have approached both the Pakistan and Indian embassies in Bangkok within a week of his sudden resignation from the DIO in January.... The FBI affidavit against him claims that he provided top secret documents that could cause ``serious and exceptionally grave damage to US national security interests if disclosed to unauthorised entities''.... His attempt to sell the material backfired when the targeted country informed the US.....He made the first approach to the Bangkok embassy on 18 January, less than a week after resigning from the DIO. The FBI affidavit alleges that he handed 713 classified documents to an undercover agent in Bangkok on 3 April....."

The Washington Times/via Drudge 5/21/99 Bill Gertz "...A Russian intelligence officer working undercover at the United Nations was caught spying on the United States and was allowed to leave the country quietly this month, The Washington Times has learned. Senior U.S. officials were particularly upset by what they called Russia's "aggressive" spying. It was the second time in six months that FBI agents caught an SVR officer spying in the United States, a sign that Moscow is intensifying intelligence activities here. The officer for Russia's foreign intelligence service, SVR, was arrested by FBI agents late last month during a secret counterintelligence operation after he obtained a classified U.S. government document from an informant, said administration officials familiar with the case. The officer was not declared "persona non grata" and forced to leave the country, the procedure normally used to expel spies posing as diplomats and who are immune from prosecution, the officials said. Instead, the matter was handled by the U.S. and Russian governments without notifying the United Nations. Because the officer, whose identity was not revealed, was working at the Russian Mission to the United Nations in New York, the State Department allowed him to leave the country quietly on May 1, the officials said. "He was caught with conclusive evidence," said one law enforcement official...... "These activities show that the Russians are continuing aggressive intelligence activities against the United States," said one official close to the case. The last time the Clinton administration publicly expelled a Russian intelligence officer was February 1994. Alexander Iosifovich Lysenko, Russia's senior spy in the United States was ordered out of the country after the arrest of Aldrich Hazen Ames, a CIA officer who worked secretly for Moscow. The secrecy surrounding the State Department handling of the two recent spy cases contrasts sharply with another recent spy case. A former Australian intelligence official was indicted Wednesday on a charge of attempted espionage after an FBI sting. Jean-Philippe Wispelaere was an Australian military intelligence official from July 1998 until his resignation Jan. 13. He is accused with selling secret and top-secret U.S. defense documents to undercover FBI agents during the past two months...."

Investor's Business Daily 5/26/99 "...As the Cox congressional report shows, China went on its quest for military technology as far back as the late 1970s. They stole design information on a warhead useful in a thermonuclear weapon, or a neutron bomb. And much of the advanced warhead data were stolen from the U.S. in the 1980s, under Republican presidents -which Clinton mouthpieces were quick to point out. But the report notes, ''significant secrets are known to have been stolen as recently as the mid-1990s.'' It adds: ''The (People's Republic of China) stole, possibly from a U.S. national weapons laboratory, classified thermonuclear weapons information that cannot be identified in this unclassified report.'' ..."

RNC 5/25/99 Freeper cd jones "...The Chairman of the Republican National Committee this afternoon urged Senate Minority Leader Thomas Daschle (D-SD) to ``read the Cox Committee Report before commenting on it.'' He charged Daschle with ``glaring errors'' in his remarks to Capitol Hill reporters this afternoon. ``If Senator Daschle had read the Cox Committee Report, he'd know that the Communist Chinese espionage began in the late 1970s -- during the Carter administration -- not in 1982 as Senator Daschle falsely said today,'' Nicholson said. ``Had Senator Daschle taken the time to read the Cox Committee Report, he'd also know that it was the Clinton administration -- not the Carter, Reagan or Bush administrations -- that was made aware of this breathtaking program of Communist Chinese espionage....."

Capitol Hill Blue 5/25/99 "... The report said that in the late 1990s, China obtained ``electromagnetic weapons technology'' that could be used to attack satellites and missiles, improved detection techniques that could be used against submarines, and ``research technology that if taken to successful conclusion could be used to attack U.S. satellites and submarines.'' Administration officials have questioned how much use any of those technologies are to the Chinese. And while the report was adopted unanimously, some of the four Democrats on the panel, have suggested the report often uses ``worst case'' assumptions..... "

www.wired.com 5/25/99 Declan McCullagh "... A new congressional report claiming widespread technological espionage by China will thwart any changes to US encryption rules in the near future, a top White House official predicted Tuesday. The conclusions of the 872-page report will probably result in legislators tightening export controls instead of relaxing them, White House Chief of Staff John Podesta said....."

5/25/99 Bill Gertz Washington Times "...The report says China: Stole design information on the United States' most advanced thermonuclear weapons that could be incorporated in the next generation of Chinese ICBMs. Transferred ballistic missile technology to Iran, Pakistan, North Korea, Saudi Arabia, Libya and other countries. Acquired some 600 supercomputers, some of which are being used in violation of U.S. export laws to develop nuclear arms. Stole U.S. missile guidance technology with direct applications for China's ballistic missiles, including short-range missiles and ICBMs. Has more than 3,000 corporations in the United States, some with links to the Chinese military, its intelligence service, or with technology targeting and acquisition roles. Stole U.S. missile guidance technology that has direct applicability to its ballistic missiles and rockets. The stolen guidance technology is used on a variety of U.S. missiles and military aircraft....."

5/26/99 US. Newswire "....The internationally syndicated newsmagazine show "American Investigator" has uncovered a clandestine arms network involving former U.N. ambassadors, used to obtain dangerous U.S. munitions. Airing on May 28, the show reveals each step of the illegal operation. "American Investigator" has penetrated and exposed a covert operation to acquire U.S. military equipment by Libya. During an investigation spanning eighteen months, an "American Investigator" reporter went undercover several times, posing as an arms supplier and using hidden video and audio equipment to catch Libyan operatives attempting to buy military equipment found on the U.S. Munitions List. The U.S. Munitions List is comprised of sensitive technology and equipment related to defense and national security that require an export license to be shipped to any nation. Libya, currently listed as a rogue nation by the U.S. State Department, cannot qualify for such a license. Analysis and interviews with experts such as Yossef Bodansky, Director of the U.S. House of Representatives Task Force on Terrorism, explain that Libya is illegally acquiring and using similar equipment to build an extensive complex for manufacturing weapons of mass destruction...."

Sacramento Bee 5/26/99 Michael Doyle "...California's Lawrence Livermore National Laboratory was targeted, penetrated and exploited by Chinese nuclear spying efforts, a long-awaited congressional report released Tuesday concludes. China acquired classified information about four nuclear warheads designed at the top-secret lab. In addition, the report says, a contract scientist at the lab admitted giving the Chinese crucial information about lasers and anti-submarine warfare, and the lab's high-performance computers were squarely in the espionage crosshairs. "It is exceptionally likely that penetration of our U.S. national weapons laboratories continues to this very day," said Rep. Christopher Cox, the Newport Beach Republican who chaired the special nine-member House investigating committee..... Peter Lee was a Taiwan-born, naturalized U.S. citizen who worked for TRW Inc., a contractor at Lawrence Livermore, for about 17 years. The report notes that, in six "adversarial interviews" with the FBI, Lee admitted giving China research from Lawrence Livermore about detecting submarines under water. Lee admitted that in May 1997, he gave a lecture in Beijing in which he sketched out the physics involved in the joint U.S.-British research. He told Chinese scientists how to improve their ability to track submarines, and when he was done, he carefully tore "to shreds" the information he presented. The information was so sensitive that the Defense Department didn't want it used in his subsequent prosecution. In December 1997, Lee pleaded guilty to giving the Chinese other information about creating miniature nuclear explosions. He was sentenced to 12 months in a halfway house, 3,000 hours of community service and a $20,000 fine. In other cases, China tried tapping Lawrence Livermore through numerous visits made by scientists. At least twice this decade, the report states, scientists from the China Academy of Engineering Physics sought to collect intelligence from the U.S. labs. Between 1993 and 1996, a previous government study noted, 1,434 Chinese scientists visited the Lawrence Livermore, Sandia or Los Alamos lab. In turn, when Lawrence Livermore scientists have visited China, investigators say, Chinese officials have peppered them with technical questions, "sometimes after a banquet at which substantial amounts of alcohol have been consumed." ..."

Fox News 5/27/99 Freeper thewildthing "....Carl Cameron reports two national labs...Argonne and Sandia...have been penetrated since 1993 and ongoing investigations are underway as indictaed by unidentified FBI sources ..."

WorldNetDaily 5/27/99 J.R. Nyquist "...Seventeen major espionage cases were brought into the limelight between 1984 and '85 alone. Consequently, the year 1985 became "the Year of the Spy." Among the more spectacular cases of the 1980s: 1) Edward Lee Howard, a CIA employee, fled to the Soviet Union after his espionage was discovered; 2) The infamous Walker spy ring consisted of Navy Warrant Officer John Walker, his brother Arthur Walker (a retired naval officer), and Jerry Whitworth (Navy radioman). The Walker spy ring went undetected for 17 years; 3) Glenn Souther, a Navy satellite photography expert, is believed to have stolen the Navy's nuclear war plan. He successfully escaped to the Soviet Union in 1986 where he was given the rank of major in the KGB.... In December of 1984, then-FBI Director William H. Webster stated, "We have more people charged with espionage right now than ever before in our history. ..." The spies we caught in the 1980s were military and intelligence personnel. At the time, nobody was looking at the American business community, or at our politicians. We know that politicians around the world have been recruited and blackmailed by the Chinese and Russian intelligence services. Can we honestly assume that our country has been immune to this sort of penetration?..."

Washington Post Staff Writers 5/28/99 Page A093 "...If Chinese spies really have stolen secrets about the design of the most sophisticated U.S. thermonuclear warheads, why would they tell the CIA? .....A former CIA station chief in Seoul, Gregg said his best guess is that the Chinese haven't been as "diabolically clever," and the United States has not been as "monumentally stupid," as the Cox committee suggests. Gregg theorized that the document contained "degraded information" that the Chinese were deliberately passing back to the CIA as part of an intelligence cat-and-mouse game to show that the Chinese knew the CIA had fed them misinformation. Houston T. Hawkins, a former Defense Intelligence Agency nuclear weapons expert who works as a top intelligence official at Los Alamos National Laboratory, cites no less an authority than the Chinese military philosopher Sun Tzu and wonders whether the Cox committee has fallen right into a Chinese trap. Borrowing a page from Sun Tzu's fifth-century classic "The Art of War," Hawkins said, the Chinese could have been trying to sow turmoil in a rival's ranks by triggering a spy hunt. Triggering such suspicion, he theorized, would have served another Chinese purpose as well, helping stem the tide of top Chinese nuclear physicists to the U.S. labs after graduation from U.S. universities. "They've accomplished these two goals--whether that's what they intended to do or not, and it is all caused by this document turned over by this double agent," he said. "Are the Chinese sophisticated enough to do this? They've been practicing espionage for 2,000 years." ....Former U.S. ambassador to China James A. Lilley, who served for years as a senior CIA officer, said that he questions the reliability of the document, which was dated 1988 and passed to the CIA in an as-yet undisclosed foreign embassy in 1995. The agent who delivered the document later returned to China. ....Paul Redmond, the former head of CIA counterintelligence who helped catch traitor Aldrich H. Ames, said he can't believe the Chinese would have included the warhead design information if they really thought it was valuable. What most likely happened, Redmond said, is that China passed the references to U.S. warhead designs--perhaps to build up the double agent's credibility--without realizing how sensitive they would be deemed by U.S. intelligence and, ultimately, the Cox committee. "There were a lot of these cases during the Cold War," Redmond said, "where you could never figures out what [the Warsaw Pact countries] were doing." ..."

Associated Press 5/30/99 Jim Abrams "...For the first time, Energy Secretary Bill Richardson on Sunday said he would fire department officials for failing to act on signs China was stealing secrets from a U.S. nuclear weapons lab. Dismissals and demotions could come as early as this week, after Richardson receives an internal report on security lapses at the Los Alamos lab in New Mexico that may have contributed to China's thefts of U.S. nuclear secrets. "There were communications breakdowns. There were incompetent acts, security was not considered important,'' Richardson said on NBC's "Meet the Press.'' On "Fox News Sunday,'' he cited "individuals at the Department of Energy and the labs that, in my judgment, did not do their jobs.'' .....Richardson also stressed that the Energy counterintelligence has already put in place 85 percent of the measures recommended to stop future attempts at espionage....Cox disagreed with that assessment, saying that since the people who have penetrated the labs over many years have not been apprehended, "we have to presume they are still there.'' ..."

The Pioneer 5/31/99 Agencies "... On a day in 1995, a Chinese defector walked into the U S embassy with boxes of secret Chinese documents for the CIA. Buried among the stacks of papers were 20 pages that would reverberate at the highest levels of America's Intelligence agencies and lead eventually to the Chinese espionage controversy.....What makes the case even more bizarre was the discovery later that the "defector" actually was a double agent for China's top intelligence agency..... Mr Cox suggested three theories: ---China may have released the dated document to mask the true source of the information or when it was obtained because the date 1988 might be misleading. ---The sensitive pages might have been included by mistake among thousands of pages provided by the double agent. ---China may have wanted to advertise that it had design information about America's most sophisticated warhead as intimidation against Taiwan. .... "

The Washington Times 5/16/99, pp C1 Bill Gertz "....Chinese hackers have attacked U.S. government information systems, including the White House network, in response to the errant bombing of the Chinese Embassy in Yugoslavia, according to an FBI report. An e-mail copy of the report, "China Cyber Activity," was obtained by The Washington Times. The report said Chinese-origin attacks on White House, State Department and other government computer systems could be copied by sympathizers in the United States. "Much of this activity traces back to Chinese addresses, and much of the reporting of this activity comes from official Chinese news sources," the report said....China is one of several nations working on the capability to knock

out vital computer, information and electronic systems.... The report did not say whether the Chinese government was behind the activities. However, Stephen Bryen, a former Pentagon export control official, said the Chinese maintain tight control over Internet service providers and it is unlikely the cyber attacks could be launched by individuals without the approval of the government..."

Reuters 5/31/99 "... Bulgarian custom officers have arrested a Turkish man for trying to smuggle a container with 10 grams (0.35 ounces) of uranium-235 across Bulgaria's checkpoint at the Danube port of Rousse, a spokesman said on Sunday. Ivan Kutevski said the suspect, a 35-year-old Turkish citizen of Kurdish origin named as Yusian Haniffi, was travelling to Moldova from Turkey. He was detained early on Saturday morning. Kutevski said the found material had been ``a very serious quantity'' and estimated its value at between $500,000 and $1.0 million...."

INVESTOR'S BUSINESS DAILY 6/9/99 Paul Sperry "...Yet the scandal is anything but seamless. In fact, it bunches up hard around the Clinton administration..... The declassified version of the House report identifies 11 cases of Chinese espionage since the late 1970s. Eight took place during President Clinton's years in office. Two of the three prior cases were first learned in 1995 and 1997. In other words, the vast majority of the leaks over the past 20 years have sprung on Clinton's watch and nearly all the old leaks have shown up then. That's not all. The House report doesn't disclose the full extent of Chinese espionage in the Clinton years. Citing ''national security'' reasons, the White House censored roughly 375 pages, including several recent cases. At least 24 times, the declassified version of the report states: ''The Clinton administration has determined further information cannot be made public.'' Left out are details about Chinese espionage that took place in the ''mid-1990s'' or ''late 1990s.'' ''Some of the most significant thefts occurred in the last four years,'' said Rep. Chris Cox, R-Calif., who headed the House panel...."

6/14/99 AP H Josef Hebert "...But the [Rudman] report provided hints of a number of previously undisclosed espionage tidbits. Among them: --Sometime in 1995 or later, ``an illegal telephone wiretap was discovered'' at an unnamed weapons lab. ``The employee who installed it confessed, but was not prosecuted by the government.'' --In the early 1980s, evidence was discovered that conversations at an unnamed weapons lab were being monitored. No further details were provided. --A DOE report in 1994 compared some computer systems at the labs to ``automatic teller machines (that allow) unauthorized withdrawals at our nation's expense.''..."

Washington Post 6/30/99 Walter Pincus Vernon Loeb "...An internal Energy Department investigation has uncovered critical weaknesses in computer security, protection of nuclear materials and reaction capability of the guard force at the Lawrence Livermore National Laboratory in California, according to congressional and administrative sources. .....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....Sources said the Energy Department investigators did limited performance testing of Livermore's contract guard force and determined it could not handle some physical assaults on the facility. In addition, the team said the guards' response times to other events were far slower than needed. The investigation showed that foreign nationals residing in sensitive countries abroad and doing non-weapons work for Livermore have had remote dial-up access to the nuclear laboratory's main, unclassified computer. .....The investigative team, which Richardson has described in testimony as his "junkyard dogs," also discovered some Livermore buildings that contained stored nuclear materials and parts did not meet Energy Department security standards. .....Richardson's internal probe expands the focus to include weaknesses in physical and cyber-security systems. Livermore and other facilities hold tons of plutonium and other nuclear bomb materials that past security reviews have found vulnerable to terrorist attack. ...."

Washington Post 6/30/99 Walter Pincus Vernon Loeb "...Edward J. McCallum, a retired Army Green Beret lieutenant colonel who served as DOE's director of safeguards and security until he was placed on paid administrative leave two months ago, said in an interview yesterday that Energy Department security forces are still inadequate. There are 4,000 security personnel for 50 facilities. "The major dozen or so facilities are well under strength; they're running 25 percent overtime on average." While DOE SWAT teams used to protect nuclear facilities from terrorist attacks have been reduced by 50 percent since 1992, McCallum said, there has been increase of 30 percent in the amount of nuclear materials for which the department is responsible. McCallum, who has been openly critical of the way the administration has handled DOE security, said he had been using Army Green Berets and Navy SEALS to help train department security personnel and to help pinpoint security vulnerabilities at the nation's nuclear facilities. He said that unlike himself, Glenn Podonsky, a longtime DOE employee who headed the new investigation called for by Richardson, could get the results of his investigations "to the secretary. I couldn't get it past the Office of Nonproliferation and National Security, an office formed in 1993 that separated us from the secretary's office." Podonsky, who headed the new investigation, said in an interview that when he went to the Energy Department to do inspections and evaluations in the late 1980s, "I would get mild attention from assistant secretaries and the labs would push back on recommendations." Then-Energy Secretary Hazel R. O'Leary cut back on his budget and emphasized health and safety inspections, other sources said. Besides physical security at Energy Department facilities, McCallum said, the department must also rectify serious cyber-security problems. "The classified systems have never been penetrated," McCallum said. "But the unclassified, sensitive computer systems have been, hundreds of times or more." ...."

Sen. James M. Inhofe Republican from Oklahoma. "...First, let us begin with a simple fact: Sixteen of the seventeen most significant major technology breaches revealed in the Cox Report were first discovered after 1994. With the lone exception of the breach of the initial design information of the W-70 warhead (the so-called neutron bomb)-which was first discovered during the Carter Administration-everything else was first discovered during the Clinton Administration. Let me repeat-sixteen of the seventeen most significant major technology breaches revealed in the Cox Report were first discovered during the Clinton Administration. Those who tell you otherwise are willfully lying to you...."

Sen. James M. Inhofe Republican from Oklahoma. "...Second, of the remaining sixteen technology breaches, one definitely occurred during the Reagan Administration-the W-88 Trident D-5. Seven occurred sometime before 1995, though it is unclear exactly when. And eight occurred-without question-during the Clinton Administration.

Sen. James M. Inhofe Republican from Oklahoma. "...The seven that occurred before 1995 included breaches of information on all of the currently deployed nuclear warheads in the U.S. intercontinental ballistic missile arsenal: the W-56 Minuteman II; the W-62 Minuteman III; the W-76 Trident C-4; the W-78 Minuteman Mark 12A; and the W-87 Peacekeeper. In addition, there was the breach of classified information on reentry vehicles, the heat shield that protects warheads as they reenter the earth's atmosphere when delivered by long-range ballistic missiles.

Let me repeat that all of these technology breaches were first discovered in 1995.

Sen. James M. Inhofe Republican from Oklahoma. "...Next, we move to the other eight major technology breaches revealed in the Cox Report. All of these were not only first discovered during the Clinton Administration, they also happened on Clinton's watch:

1. The transfer of the so-called Legacy Codes containing data on 50 years of U.S. nuclear weapons development including over 1,000 nuclear tests;

2. The sale and diversion to military purposes of hundreds of high-performance computers enabling China to enhance its development of nuclear weapons, ballistic missiles, and advanced military aviation equipment;

3. The theft of nuclear warhead simulation technology enhancing China's ability to perfect miniature nuclear warheads without actual testing;

4. The theft of advanced electromagnetic weapons technology useful in the development of anti-satellite and anti-missile systems;

5. The transfer of missile nose cone technology enabling China to substantially improve the reliability of its intercontinental ballistic missiles;

6 .The transfer of missile-guidance technology (by President Clinton to China) enabling China to substantially improve the accuracy of its ballistic missiles-these same missiles that are targeting US cities;

7. The theft of space-based radar technology giving China the ability to detect our previously undetectable submerged submarines; and

8. The theft of some other "classified thermonuclear weapons information," which "the Clinton Administration" (not the Cox committee) "has determined . . . cannot be made public."

Sunday Times of London 7/25/99 Matthew Campbell "…AMERICAN officials believe Russia may have stolen some of the nation's most sensitive military secrets, including weapons guidance systems and naval intelligence codes, in a concerted espionage offensive that investigators have called operation Moonlight Maze. The intelligence heist, that could cause damage to America in excess of that caused by Chinese espionage in nuclear laboratories, involved computer hacking over the past six months. This was so sophisticated and well co-ordinated that security experts trying to build ramparts against further incursions believe America may be losing the world's first "cyber war". Investigators suspect Russia is behind the series of "hits" against American computer systems since January. In one case, a technician trying to track a computer intruder watched in amazement as a secret document from a naval facility was "hijacked" to Moscow from under his nose….. Besides military computer systems, private research and development institutes have been plundered in the same operation. Such institutes are reluctant to discuss losses, which experts claim may amount to hundreds of millions of dollars….. Dozens of infiltrations ensued at other military facilities and even at the Pentagon in Washington. When research laboratories also reported incursions using the internet technique, officials realised that a "cyber invasion" was under way….. Even top secret military installations whose expertise is intelligence security have been breached. At the Space and Naval Warfare Systems Command (Spawar), a unit in San Diego, California, that specialises in safeguarding naval intelligence codes, Ron Broersma, an engineer, was alerted to the problem when a computer print job took an unusually long time…."

ChinaOnline News 7/29/99 William J McMahon "...The U.S. Defense Intelligence Agency (DIA) is currently investigating the possibility that an American official crossed the line in being "too obliging with the Chinese government," a reliable source told ChinaOnline on Thursday. The source also said that the official in question is not an ethnic Chinese-American, something unusual in Chinese espionage cases....

Bin Wu, a Chinese double agent, was sentence to 10 years in prison in 1993 for attempting to transfer night-vision technology to China. In 1987, four Chinese businessmen were caught trying to sell TOW2 antitank missiles, blueprints for F-14 fighter plane, and air-to-air missile information. In 1986, Larry Wu-tai, a CIA translator, was convicted for spying for China for more than 30 years. In the same year, Israel was discovered to have sold U.S. defense technology to China that lead to the development of China's J-10 fighter bomber. Da Chuan Zheng, a Hong Kong businessman, was arrested in 1984 for trying to buy advanced high tech equipment for China. Da reportedly sold over US$25 million in U.S. radar and surveillance technology to China.... "

The Washington Times 8/7/99 Jim Keary "...A Department of State private security guard breached security by taking a woman he met over the internet into the office of Secretary of State Madeleine K. Albright and was not fired, a former guard supervisor told The Washington Times. Former Sgt. Calvin McIlway, 35, reported the November 1998 incident to his superiors at Inter-Con Security Systems Inc. and said the guard was allowed to resign -- rather than being charged and fired -- so that he could return to a job in the military. Mr. McIlway said the man, who also was a guard sergeant, had no business going into Mrs. Albright's office -- especially with a woman he barely knew. "This woman was not screened and she went into a high-security area. That was a serious breach of security," Mr. McIlway said. "..."

Atlanta Constitution 8/15/99 Rebecca Carr "…Federal investigators say Wang, son of a former Chinese vice president, formed at least a half-dozen companies in the Atlanta area with just 20 em ployees. Still, investigators say some of these companies bought, sold and in at least one case smuggled sophisticated weapons, funneled money to suspicious offshore bank accounts, and bought up land across the country….. "There is little doubt that Wang Jun was in this country to acquire sensitive technology," said Rep. Christopher Cox (R-Calif.), who headed a Congressional investigation into Chinese espionage….a former Chinese naval intelligence officer who ran Wang's Atlanta operations from offices on East Paces Ferry Road was indicted in 1996 for his alleged role in smuggling 2,000 AK-47s into this country. …The Wang associate, Robert Ma, remains a fugitive and is believed to be in China. Federal investigators suspect he had been tipped off that the indictments were coming. Then there's the treasure chest of arms sale profits stemming from Wang's Atlanta operations that mysteriously ended up in the Cayman Islands, Bermuda and the British West Indies, according to internal company records, court documents and interviews with former employees …."

Atlanta Constitution 8/15/99 Rebecca Carr "…. As the head of Poly, Wang reports directly to the so-called Staff Department of PLA, which oversees China's military intelligence. Wang also runs China International Trust & Investment Corp., a powerful company with interests in industry, finance and trade. Federal investigators believe both companies took part in a plan to station workers at companies throughout the United States to gather sensitive information that would be helpful to the military. Cox and other federal investigators estimate there are as many as 3,000 such "front" companies in the United States……F. Michael Maloof, chief of technology security operations at the Defense Department's U.S. Threat Reduction Agency, has been investigating Wang's activities for more than 18 months. He has no doubt about what Wang has been up to. "Wang Jun's operations are part of an overall Chinese system that is integrated to target and acquire militarily critical technologies," Maloof said….. Congressional committees have requested his appearance to answer campaign fund-raising and espionage allegations for the past two years. They have little hope he will appear. "This guy is bad news," said Rep. Bob Barr (R-Ga.), who sits on the House panel investigating campaign fund-raising misdeeds. "The fact that he has been able to operate with impunity is very disturbing. This fellow has ties that go directly to the Communist Party in Beijing. He is right there, smack in the middle of the campaign finance scandal and (involved with) U.S. corporations that are in the middle of the spy scandal. Apparently this comes as a surprise to our law enforcement officials, and that's a problem. It's outrageous." …"

Atlanta Constitution 8/15/99 Rebecca Carr "…Wang's enterprises eventually stretched across the United States, but they began in Atlanta in 1987 as PTK International Inc., a joint venture with a Smyrna company, Keng Firearms Specialty Inc. Two other companies controlled completely by Wang --- Dynasty Holding Co. and Poly USA Inc. --- soon followed. Four additional companies were incorporated in Atlanta, but never conducted any kind of business. Most of the companies listed the same officers and the same address on East Paces Ferry Road. Wang's companies in Atlanta devoted themselves mostly to importing guns from China and reselling them to dozens of American distributors. But Dynasty bought a lot of commercial property across the country. …. All of the companies were dissolved by the summer of 1996 soon after Ma's gun smuggling indictment, according to Collins, who remains on good terms with his former Chinese employer. ….After several years of discussions, Poly and Keng signed an agreement in Beijing in 1986. Poly would export from China AK-47 assault rifles and SKS semi-automatic rifles to Keng Firearms, which would sell the guns to PTK, the joint venture between Wang's Poly and Keng in Atlanta. PTK then would sell to American distributors. …."

Atlanta Constitution 8/15/99 Rebecca Carr "…In Atlanta federal court, the Kengs and Poly tangled over shipments and legal issues involving their partnership. The court fight soon turned nasty, involving two of the city's biggest law firms --- Long, Aldridge & Norman representing Poly and Alston & Bird representing the Keng family. Court records show a flurry of unusual legal actions….. After much haggling with Poly, Stephenson and his partner, Peter Bassett, went to Beijing in the spring of 1991 to depose Ma and a handful of others. On the third day of their visit, the lawyers said they were accosted by three men at the top of the escalator at the China World Hotel. They warned: "We know who you are, where you are and what you are doing. Watch your step. Beijing is a small place." Stephenson and Bassett were so rattled that they immediately returned to their hotel room and called the U.S. embassy. No answer. They left and walked to the lounge of the Shangri-La Hotel, where they sat in a stunned daze for hours, thinking about what to do next. The men who had accosted them knew too much --- their names and businesses --- to be mere street thugs…..Stephenson and Bassett say their suspicions about the incident were confirmed when a year later they learned from the American Embassy in Beijing that a high-ranking Chinese official had --- the day before their arrival in China --- sent a letter to the embassy, objecting to their taking depositions of potential witnesses…. A few days later, Stephenson told Atlanta federal Judge Charles Moye in court documents that "individuals have been threatened with punishment in the event (Poly) learns of their involvement." He said it would be impossible to call future witnesses, some of them employees of Wang, because he feared that the Chinese government might "subject individuals in China to the danger of retribution." …."

Atlanta Constitution 8/15/99 Rebecca Carr "…Stephenson said Poly abruptly dropped its suit after he started tracing millions of dollars of Dynasty's money to a "mail drop" in the Cayman Islands. Much of that money, Stephenson alleged, accumulated in offshore accounts through an illegal "dual billing" practice to hide gun sale profits from China's Ministry of Foreign Trade and Economic Relations. "They were shipping money from Dynasty to an insurance company in the Cayman Islands, ostensibly for insurance premiums," Stephenson said. "We are talking about a mail slot in a bank. . . . They were expensing these premiums for tax purposes, so they didn't show their full income on their business activities here." …. "

Atlanta Constitution 8/15/99 Rebecca Carr "… And evidence of espionage continues to grow….. In 1988, Poly asked PTK officials to place a shipment of high-tech computer equipment in brown paper and ship it in unmarked wooden crates to China. Company documents indicate that company officials were asked to draft documents that would conceal the equipment, making it appear that it was actually radio equipment. Memos turned over to investigators show that Poly officials in Beijing wrote memos to Poly employees in Atlanta instructing them in Chinese to ship $19 million worth of militarily sensitive high-tech radar equipment through a state-owned shipping line….. "

U P I 8/27/99 "…Serb antiaircraft gunners were able to shoot down a U.S. F-117A Stealth fighter jet because a spy had given away the plane's flight path, a newspaper in Scotland charges. The Scotsman, in its Friday editions, claims that a highly placed NATO officer leaked information on the plane's flying orders to Russian intelligence, who then gave the data to Serbs. The Pentagon is reportedly denying the report, saying orders for U.S. missions do not go through NATO. In an article written by Jane's Defense Weekly senior analyst Paul Beaver, the Scotsman says someone based in NATO's base in Brussels, and with access to highly sensitive documents, passed along the information. …"

Reuters 8/27/99 "…The United States Friday denied a newspaper report that a spy within NATO passed secrets to Russia during the war over Kosovo, including details of flight plans of U.S. warplanes. ``There is no information to corroborate those allegations,'' David Leavy, a spokesman for the White House National Security Council, told Reuters. The Scotsman newspaper, which cited NATO sources, said leaked information included flight details for a bombing raid by U.S. stealth fighters, which enabled Serb forces to shoot down one of the planes. The newspaper's sources said an officer attached to NATO passed the details to Russian intelligence services, which then told Belgrade that the target was a defense research base. …"

http://www.newsday.com/ap/rnmpwh1p.htm 8/24/99 AP 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.'' …"

Jane's Defence Weekly 9/1/99 Paul Beaber "…Claims and counter-claims have begun to cloud the story behind the downing of a US Air Force F-117A Nighthawk stealth fighter during the opening days of Operation 'Allied Force'. Serbian military sources claim a spy within NATO provided flight details from NATO's daily air tasking orders (ATOs). The Serbian source claims a NATO spy provided data that allowed aircraft and missiles to ambush the F-117A. The spy allegedly supplied the data to the Russian GRU military intelligence service, which passed it to Belgrade. The information included the stealth fighter's intended target, apparently the defence research establishment at Budjanovci, northwest of Belgrade, and projected flight path. As a result of the information, says the source (a former Serbian military officer), the Yugoslav air defence forces planned a 'Sambush' using fighter aircraft and surface-to-air missiles. The result was the first loss of a NATO aircraft and a propaganda coup for President Slobodan Milosevic's regime just a few days into the NATO bombing campaign. According to the Yugoslav source, three Russian-supplied P-12 land-based early-warning radar systems (NATO reporting name: 'Spoon Rest') detected the F-117…."

Reuters 9/11/99 "....Soviet spies buried explosives across the United States and Europe as part of a Cold War sabotage campaign that identified power stations,fuel pipelines and other infrastructure sites,a former KGB officials says. ....Mitrokhin,whose disclosure about Briton Melita Norwood's nuclear espionage on behalf of the Soviet Union made headlines Saturday,says that for years he copied top-secret documents by hand and smuggled them from Russian intelligence headquarters,sometimes in his shoes,and hid some of them in a mattress. ......Mitrokhin divulges a trove of information about KGB efforts in the United States,including an aggressive disinformation attempt to pin the assassination of President John F.Kennedy on the Central Intelligence Agency. But a major disclosure involves Mitrokhin's claim that Soviet spies surveyed hundreds of potential sabotage sites in the United States and Western Europe in the 1960s and 1970s."As part of that,"according to "60 Minutes""they buried booby trapped arms caches near some of the targets."The explosives presumably are still there. In the United States,the KGB sabotage plan covered areas across the country.One of the first targets identified by the KGB was an oil pipeline running from El Paso,Texas,to Costa Mesa,California.The Hungry Horse Dam in Montana also was on the list as was a "tremendously elaborate system"for knocking out electrical power to New York state,"60 Minutes"reports. ...."

New York Times 9/12/99 James Risen ".....The Soviet K.G.B. fabricated evidence linking the Central Intelligence Agency to the assassination of President John F. Kennedy and passed the material to unwitting conspiracy theorists in the United States, according to a new book based on K.G.B. files brought to the West by a defector. According to the files turned over by a former K.G.B. archivist to British intelligence and detailed in a new book, Moscow's cold war spy service took several steps designed to link the C.I.A. to the assassination. These steps included forging a letter from Lee Harvey Oswald to a C.I.A. officer, E. Howard Hunt, asking for information "before any steps are taken by me or anyone else," according to the new book, "The Sword and the Shield," written by Christopher Andrew and the former K.G.B. officer, Vasily Mitrokhin. The book is to be published by Basic Books this month. The Oswald letter was supposed to have been written about two weeks before President Kennedy was gunned down in Dallas on Nov. 22, 1963, but was actually created by the K.G.B. in the mid-1970's, after E. Howard Hunt's name had surfaced in the Watergate investigation, according to K.G.B. files copied by Mitrokhin while he served as a K.G.B. archivist....."

ABC Radio News 9/12/99 Freeper kristinn reports "...While listening to the Drudge radio show tonight, I heard ABC News report that the U.S. Department of Defense had ordered that passwords be changed on it's computers because Russian agents had penetrated their computer networks. In a later report, ABC added that the Russians had penetrated computer networks throughout Europe and that they had gathered invaluable intelligence from these operations. ...."

Washington Post 9/14/99 Michael Dobbs "....The Soviet KGB mounted a massive bugging operation in the United States in the 1970s and early '80s that provided the Kremlin with intelligence on everything from Henry Kissinger's phone conversations to top-secret weapons, according to revelations by a Soviet defector. Intelligence experts have long acknowledged that the Soviet Union excelled in the field of human intelligence, or Humint, as demonstrated by its ability to recruit hundreds of informers in the United States for either ideological or mercenary motives. It now turns out that the KGB scored important successes in signals intelligence, or Sigint, an area in which the United States has long been regarded as superior. A new book drawing on notes smuggled out of Russia by a former KGB archivist asserts that the Soviet missions in Washington and New York were the hub of the eavesdropping operation. One KGB document cited by the defector, Vasili Mitrokhin, claimed that over half the projects of the Soviet defense industry in 1979 were based on intelligence from the West.....But the KGB did succeed in intercepting the fax communications of U.S. defense contractors, including Boeing, General Dynamics, Hughes, IBM and Lockheed. According to Mitrokhin's documents, the intercepts provided important material on the Trident, MX and Pershing missile systems; the F-15, F-16 and B-1 aircraft; and the AWACS radar system. The KGB was particularly proud of a bugging operation against System Planning Corp., a defense contractor in Alexandria, that yielded "highly important" information on U.S. nuclear weapons in Europe, chemical weapons, laser-guidance systems and the U.S. Navy's chances of surviving a nuclear conflict. ...."

ABCNews John McWethy "...Mitrokhin who worked from 1972 to 1984 in the KGB's top-secret archives &emdash; has dumped on Western intelligence agencies six trunkloads of notes and copied archive material exposing the KGB's espionage activities against the West during the Cold War. Among the startling revelations: Mitrokhin's highly classified notes describe how the Soviet spy agency tried unsuccessfully to recruit Cyrus Vance, who later became U.S. secretary of state, and Zbigniew Brzezinski, who was President Carter's national security adviser. The KGB began operations against Ronald Reagan some five years before he became president, according to the material...... Mitrokhin's material explains how the KGB stashed weapons, radios and money in secret hiding places in the United States. U.S. law enforcement never found the stashes, believed to be located near Brainard, Minn. But Mitrokhin last year was able to lead police to similar hiding places in Switzerland. The sites were booby-trapped with explosives. The archives also describe attempts by the KGB to discredit U.S. civil rights leaders, including Martin Luther King Jr. For instance, the KGB planted stories in the press that King was secretly working with President Lyndon Johnson...that he had sold out to the white establishment.....

ABCNews John McWethy "...The Soviets listened to phone calls of U.S. officials like Henry Kissinger, tapped into the telephones and fax machines of U.S. defense contractors, and embedded spies in big companies like General Electric and IBM, according to the documents. The papers show that the KGB estimated more than half of all Soviet weapons were based on stolen American designs. The KGB also had files showing detailed plans for sabotaging major dams in the West, including the Flathead and Hungry Horse dams in Montana. The Port of New York was another major target, with KGB files showing massive detail of work schedules and weak points in security.......Mitrokhin had tried to defect at the U.S. embassy in Riga, Latvia in 1992. But he was turned away. CIA officials who handled defectors, overwhelmed at that time by hundreds of Russians trying to get to the West, said they were not interested. Afterall, Mitrokhin was not a spy, he was essentially a librarian. Paul Redmond, then head of CIA counter-intelligence, argued to bring Mitrokhin in, but no one listened. "It was...in my view a breathtakingly stupid thing," says Redmond....."

ABCNews.com 9/10/99 John McWethy "....He worked at KGB headquarters, a quiet bookworm. Now Vasili Mitrokhin is viewed as one of the West's most spectacular espionage finds. Mitrokhin - who worked from 1972 to 1984 in the KGB's top-secret archives - has dumped on Western intelligence agencies six trunkloads of notes and copied archive material exposing the KGB's espionage activities against the West during the Cold War. Among the startling revelations: Mitrokhin's highly classified notes describe how the Soviet spy agency tried unsuccessfully to recruit Cyrus Vance, who later became U.S. secretary of state, and Zbigniew Brzezinski, who was President Carter's national security adviser. The KGB began operations against Ronald Reagan some five years before he became president, according to the material. Intelligence officials say the material in many instances either confirmed things they already suspected but couldn't prove, or filled in missing pieces to puzzles they hadn't solved. "This is probably one of the most, if not the most, important defector that I've seen in the 20th century," says David Major, a former FBI counterintelligence agent. Mitrokhin's material explains how the KGB stashed weapons, radios and money in secret hiding places in the United States. U.S. law enforcement never found the stashes, believed to be located near Brainard, Minn. But Mitrokhin last year was able to lead police to similar hiding places in Switzerland. The sites were booby-trapped with explosives......"

 

Newsweek 9/20/99 "....It's being called "Moonlight Maze," an appropriately cryptic name for one of the most potentially damaging breaches of American computer security ever - serious enough for the Department of Defense to order all of its civilian and military employees to change their computer passwords by last month, the first time this precaution has ever been taken en masse. The suspects: crack cyberspooks from the Russian Academy of Sciences, a government-supported organization that interacts with Russia's top military labs. The targets: computer systems at the Departments of Defense and Energy, military contractors and leading civilian universities. The haul: vast quantities of data that, intelligence sources familiar with the case tell NEWSWEEK, could include classified naval codes and information on missile-guidance systems. This was, Pentagon officials say flatly, "a state-sponsored Russian intelligence effort to get U.S. technology" - as far as is known, the first such attempt ever by Russia. Washington has not yet protested to Moscow. ...."

AP 9/17/99 Robert Burns "....Yugoslavia may have sold the wreckage of the U.S. Air Force F-117A stealth fighter that its air defense forces shot down near Belgrade early in the Kosovo war, Air Force chief of staff Gen. Michael Ryan said Friday. Speculation centers on Russia or China as the likely buyers. The downing of the F-117A on March 27 was the first loss of a stealth aircraft in combat and confirmed that although stealthiness is an asset it does not make an airplane invisible to enemy radar....."

Defense Information and Electronics Report 10/22/99 Anne Plummer "....Attacks against Defense Department computer networks have become significantly more sophisticated over the past year, according to a senior Pentagon official who compared the February 1998 Solar Sunrise episode with "Moonlight Maze," a more recent electronic assault incident allegedly involving hackers based in Russia. "Over a year, the severity has increased dramatically," said Art Money, acting assistant secretary of defense for command, control, communications and intelligence. The frequency of DOD network intrusions has risen as well, Money said Oct. 18 at the National Information Systems Security Conference in Arlington, VA. "The kids [responsible for Solar Sunrise] essentially found a well-known vulnerability of the operation system and came in that way," Money said. "Moonlight Maze brings a whole different, much more sophisticated approach. But it also brings another dimension -- no longer with hackers, but with the problem of a state-sponsored attack."....."

The Los Angeles Times 11/4/99 "….The FBI is trying to determine whether cyber spies at the Russian Academy of Sciences in Moscow are responsible for Moonlight Maze, the most pervasive assault by hackers on sensitive Defence Department and other computer networks. The first attack was detected in March last year. Three months later, United States security sleuths were able to monitor a series of intrusions as they occurred and trace them to seven dial-up Internet connections near Moscow. But the intense attacks continued until at least last May, and the FBI investigation remains open. It cannot determine if the cyber trail really stops in Moscow or only seems to. Either way, the Moonlight Maze attack was enormous. US officials said the intruders systematically ransacked hundreds of essential but unclassified computer networks used by the Pentagon, the Energy Department, NASA, defence contractors and universities. …."

Associated Press 11/18/99 "….Federal investigators have reportedly found new evidence suggesting China may have obtained information about America's most advanced nuclear warhead from one of the weapon's contractors or the Navy. ….. The Washington Post quoted government sources in its editions Friday as saying that errors found in a Chinese intelligence document describing the W-88 warhead have been traced to a defense installation and contractors that assemble nuclear weapons….."

Washington Post 11/19/99 Vernon Loeb Walter Pincus "….The evidence emerged after weapons scientists at Los Alamos noted errors in a Chinese intelligence document that sparked the initial FBI and congressional investigations into Los Alamos and Lee. The telltale errors, contained in a description of the miniaturized W-88 warhead, were traced to one of the contractors and defense installations that assemble nuclear weapons, government sources said. While the new evidence does not completely eliminate Los Alamos or Lee, the sources said, it indicates that the most likely origin of the information is one of the weapons "integrators." These include Sandia National Laboratories, which puts together prototypes of some warheads; Lockheed Martin Corp., which attach warheads to missiles; and the Navy, which supervises the process……"

Washington Post 11/19/99 Vernon Loeb Walter Pincus "….From the start, however, the Chinese document's description of the radius of the W-88's nuclear trigger was less precise than would be needed to construct such a device, according to one U.S. nuclear scientist familiar with the document. "The information was not detailed enough to be accurate," the scientist said. Although officials yesterday would not discuss the particular errors involved in the FBI investigation, the measurement of the trigger was said to be the kind of data under scrutiny….."

Fox News 11/24/99 Freeper Leper Messiah reports "…. At the 1:30 break on Fox News it was reported that the Air Force has admitted one of the stealth fighters lost in Kosovo was shot down. I could not find an article on their site. ….."

Reuters 11/29/99 "….A senior U.S. Naval officer entrusted with highly classified data has been charged with passing secrets to Russia in 1994, long after the Cold War ended, U.S. military officials said on Monday. Petty Officer First Class Daniel King, a 40-year-old code expert, was in military custody in Quantico, Va. awaiting a military hearing, said U.S. Naval Commander Greg Smith. U.S. military officials said King had admitted passing some classified information to Russia, but they believed it was "a very narrowly defined specific event''. …."

Drudge Report 12/11/99 Matt Drudge "…. A day after indicting Los Alamos scientist Weh Ho Lee, senior government officials tell the NEW YORK TIMES on Sunday that Lee "jeopardized virtually every nuclear warhead in the American arsenal through unauthorized computer transfers of many of the country's most sensitive nuclear secrets." TIMES hotshot James Risen reports that much of the data is still missing -- vital information that Lee put on 10 portable computer disks from 1993 to 1997. Only 3 of these disks have so far been recovered! …..On the disks, Risen writes, "were thousands of pages of nuclear-related documents." In 1997 Lee placed on one disk the "'complete source code for the current version' of the government's most advanced primary weapon design, which is an atomic bomb that acts as the trigger to explode a hydrogen bomb." ….."

MSNBC 12/10/99 "…..Sources tell NBC News that the U.S. attorney in Albuquerque, N.M., has asked a federal grand jury to indict Wen Ho Lee, who has been investigated in a probe into allegations of Chinese espionage at U.S. nuclear weapons laboratories. THE SAME sources tell NBC News that Lee will not be indicted for espionage, but for lesser charges like downloading highly classified information from a classified computer to a non-classified computer and copying classified material to tapes. Some of those tapes are reported missing. Earlier this week, newspaper reports said top U.S. security, law enforcement and energy officials met at the White House last Saturday and decided that should Attorney General Janet Reno decide to prosecute, the secrets that would probably be divulged at a criminal trial would not irreparably damage national security. ….."

The Nando Times 12/10/99 H Josef Hebert "…..http://www.nandotimes.com - Fired scientist Wen Ho Lee was indicted Friday for removing nuclear secrets from a secured computer at the Los Alamos weapons lab where he once worked, government officials said. FBI agents immediately arrested Lee at his home outside of Los Alamos, N.M. He was being taken to Albuquerque for an initial appearance later Friday before a federal magistrate, said FBI Special Agent Doug Beldon. …… While the government is prosecuting Lee for security violations, authorities have been unable to prove that Lee gave specific secrets to any country, including China, officials said. ….. But officials familiar with the prosecutor's plans said the government planned to charge Lee with downloading secrets of American nuclear weapons and tests from a secured computer at the lab. The government would further allege the scientist stored the secret data on computer tapes and removed them from the lab, the officials said……. "

CBC news online 12/10/99 Michael Sniffen "…..U.S. investigators are pursuing the possibility Russian spies had inside help planting a bug inside the State Department because it took more than one visit to install, a government official said. It took months to find the sophisticated eavesdropping device - even after an alert FBI surveillance team on a different assignment noticed a Russian diplomat regularly visiting the streets outside the U.S. diplomatic headquarters early last summer. Methodical observation of his weekly visits then revealed he was positioning his car as though receiving an electronic signal. U.S. investigators prowled the halls of the eight-story, two-block-square department for weeks carrying a disguised detector before locating the radio signal they said the bug sent from a department conference room to the man outside. They could only search when he was parked nearby, because he had to activate the device, the official said….."

CBC news online 12/10/99 Michael Sniffen "…Still other agents are briefing the security officers of other federal buildings around Washington, because "we don't imagine the Russians would take this extremely sophisticated device and use it for the first time on such a hard target as the State Department," the government official said. "This is as aggressive as you get," the official said. "This was a very bold move." ….. "Someone would have had to come into the room to survey it, take measurements and probably photos and come back for the installation," he said. The bug was a radio transmitter that could broadcast conversations from the room. "This is obviously a very serious breach," Deputy Attorney General Eric Holder told reporters Thursday. ……"

The Washington Times 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……."

NewsMax.com 12/9/99 "....A decade after the Cold War's demise, Russia and the United States are still swapping spies. An electronic "bug" is found eavesdropping on Secretary of State Madeleine Albright. An employee of the American embassy in Moscow is caught carrying a pocket-size snooping device and - yes, they still use it - invisible ink, so pedestrian that James Bond's "Q" would have been disdainfully unimpressed. As required under one of international espionage's enduring, unwritten game rules - "catch one, lose one" - it's home-you-go for one Russian, one American. Unspoken etiquette calls for the meticulous equation of banished operatives' respective ranks, books neatly balanced by close of business....."

The New York Times 12/9/99 David Johnston James Risen "....The federal authorities Wednesday night arrested a Russian diplomat believed to be an intelligence officer who had sought classified information from the State Department, government officials said. The officials would not identify the diplomatic officer, but they said that the case involved a substantial Russian espionage effort aimed at pilfering sensitive information about American activities abroad......The timing of the arrest seemed to link it to an incident in Moscow on Nov. 30, when the Russian authorities detained an American diplomat who they said was a spy preparing to meet a Russian contact. ....."

Capitol Hill Blue 12/9/99 George Gedda AP "…..U.S. agents found it ``a little bit odd'' when they encountered Russian diplomat Stanislav Gusev near the State Department last summer. The chance sighting, officials said Thursday, led to the discovery of a Russian operation that included an ``extremely sophisticated'' spying device inside America's diplomatic headquarters. It also triggered an expulsion order for Gusev and an intense in-house investigation to determine who was responsible for planting the device. Officials said hundreds of State Department employees were being interviewed. ``We don't have a suspect,'' said a government official, who requested anonymity. ``We're looking at and haven't eliminated any possibility.'' Investigators are interviewing all participants in 50 to 100 meetings that occurred in the bugged conference room since Gusev began showing up outside the building early last summer, according to a government official, who requested anonymity. Their goal is to determine exactly what he might have heard. …."

The Washington Times 12/14/99 "….Late last week the federal government indicted Mr. Lee on 59 counts of illegally removing U.S. nuclear secrets from a classified computer system. Mr. Lee was not charged with espionage or with transferring the classified information to an unauthorized person or a foreign government. However, the indictment does charge that Mr. Lee removed those classified nuclear secrets "with the intent to injure the United States and with the intent to secure an advantage for a foreign power." A senior law-enforcement official has characterized Mr. Lee's unauthorized actions as so sweeping and so extensive that the global nuclear balance of power could be significantly affected if a foreign government obtained those nuclear secrets. …… Specifically, the government charged that Mr. Lee unilaterally erased classified markings on documents, which were then shifted to unsecured computers, where the information was subsequently copied onto the computer tapes. According to the indictment, in 1993 and 1994 Mr. Lee copied nearly 400 computer files, including the mathematical approximation of the designs of nuclear weapons, their exact dimensions, information about testing problems, actual and simulated testing results and computer programs required to design and test the weapons. Many of these files contained information far in excess of what Mr. Lee needed to perform his job, one official has claimed. According to the indictment, law-enforcement officials have failed to locate seven of the 10 portable computer tapes made by Mr. Lee….."

Worldnetdaily 12/14/99 Jon Dougherty "….. What finally triggered his arrest, according to press reports, was the discovery that Lee had copied voluminous amounts of secrets about "every nuclear warhead in the U.S. arsenal" onto a series of cassette tapes -- the kind used for backing up computer data. The FBI believes several such tapes were made but can only locate three of them at the present time. My guess is the rest of them are in Peking, but that's neither here nor there. Most people who were intelligent enough to realize long ago that the Clinton administration had traded our national security for a measly few hundred thousand dollars in campaign donations know where those tapes -- and the rest of the stolen nuclear weapons data -- are located right now. All of it in its various forms is -- at this moment -- in the hands of Chinese nuclear weapons designers, engineers and scientists who are busily developing Peking's next generation of offensive nuclear weapons. ….Rest assured that much of the stolen information will end up in Moscow eventually, as well as a host of other rogue nuclear and emerging nuclear powers. Like President Clinton and the Democratic National Committee, China will sell anything (or sell anyone out) for a buck. …."

South China Morning Post 1/6/00 Greg Torode "….The espionage link [Lee Wen-Ho] was spelt out in an Albuquerque court last week by FBI Special Agent Robert Messemer, an expert in Chinese intelligence. Just as US District Court Judge James Parker was reportedly considering freeing Lee in the interim under considerable restrictions and 24-hour FBI surveillance, Mr Messemer played the national security card. All manner of signals could be used to alert foreign spies that Lee was prepared to dispatch seven missing computer tapes full of downloaded secret data, Mr Messemer suggested. In open court, Mr Messemer attempted to document on behalf of the prosecution a "pattern of deception" dating back to 1982 when he called a colleague at the Lawrence Livermore lab under investigation for spying to offer assistance. He claimed it continued through trips to Beijing on lab business in 1986 and 1988 with one "clandestine" meeting in a hotel room finally revealed under questioning last December. Then there was the case of a link to Zheng Shaoteng, the head of China's Institute of Applied Physics and Conceptual Mathematics. Lee had always insisted he had received nothing more than a Christmas card from Mr Zheng, one of the mainland's foremost scientists. Mr Messemer claimed FBI agents searching his garage last April after his sacking found a request for certain unclassified information…… "

Washington Post 1/24/2000 Walter Pincus "…. n numerous occasions in 1994, someone on the campus of the University of California at Los Angeles used Wen Ho Lee's password to enter Los Alamos National Laboratory's computer system via the Internet. ee's attorneys say it was his daughter, Alberta, playing a computer game. But federal prosecutors, who are continuing to investigate the log-ins, are not so sure. They are trying to determine whether someone else at UCLA may have gained access to the U.S. nuclear secrets that Lee transferred from the classified, highly secure computer network at Los Alamos to a less secure, unclassified network. Over a period of a year, Lee's password was used about 70 times to log in to the unclassified Los Alamos network from the UCLA campus. Investigators are examining whether it was merely a coincidence that three of those sessions took place within hours after Lee downloaded fresh batches of secrets to the unclassified computer….."

Washington Post 1/24/2000 Steve Mufson "…..But Sen. Robert C. Smith (R-N.H.) wants a Senate committee to greet China's "chief spy master" with a subpoena to testify instead. Rep. Christopher Cox (R-Calif.) said that the general is simply the wrong person to build relations. "His business is disinformation," Cox said. 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." ….."

Freeper XGMan 1/23/2000 "….Wen Ho hasn't been set up. He has been protected by Administrative interference. What's reported in the media is nothing more than a disinformation campaign based on Wen Ho's lawyer's defense, in conjunction with Janet Reno's slanted (and most unusual) public commentaries on weak evidence, along with the same race-baiting "Asian"-American leaders and organizations who bought Washington passage for the likes of John Huang, Charlie Trie, Ginger Lew and Valerie Lau. Wen Ho is one clever dude and a very well-coached victim By using classifed XDiv codenames when he merged the secret data to the open LANL network, Mr. Lee maintained an accidental transfer "oops" excuse, in the near-impossible event the files were found in the massive open inventory, and recognized by the open system administrator who would have no idea of what they were. While he is an expert at Cray Hydrodynamic Applications, his weakness with simple file transfer protocols and default deletion delays left just enough pieces to do him in. Trulock deserves more than $10k……"

Freeper agrandis 1/24/2000 "….Trulok may be a good guy. So, what did WHL transfer to the Chinese? The W-88 warhead technology? When did that happen? Is this Taiwanese-born scientist the ONLY or the MAJOR spy the Chi-Coms have in this country? I'm saying to be careful what we read in the news - it has been woefully misleading and inaccurate, and nothing Reno or Bill Richardson say is ever truth. I'm basing my conclusion that WHL is a scapegoat on inside information I am getting from MANY RELIABLE sources in LANL, not on news reports. ….."

UPI 1/25/2000 "….A Soviet spy identified as the highest ranking member of the Russian military intelligence agency to defect to the United States, made a dramatic appearance Monday before a congressional hearing to repeat his previous claims that Soviet agents had stashed weapons and communications for future sabotage against U.S. targets. Former Col. Stanislav Lunev wore a black bag over his head and used an electronic device to disguise his voice as he testified from behind a protective barrier that blocked all but the congressional panel from seeing him. Lunev has suggested before, in a book published after he defected seven years ago, that portable nuclear devices may be lurking in suitcases hidden across the United States, but critics including State Department officials strongly dispute the claims….. Burton said he held Monday's hearing in Los Angeles because California was allegedly one of the major targets. Lunev said he cannot provide exact locations of the caches because his role was only to locate potential sites for the gear that later Soviet agents would use to disrupt U.S. life in a campaign of sabotage. In his heavy Russian accent, Lunev testified: "I had very clear instructions: These dead-drop positions would need to be for all types of weapons, including nuclear weapons." The "dead-drops" also were to include guns, radios, maps and cash……evidence of such caches has been found in Europe-two in Switzerland and one in Belgium, which were searched after another Soviet defector, Vasili Mitrokhin wrote that hundreds of such sites were scattered throughout the United States and Europe….."

 

World Net Daily 2/13/00 Charles Smith "…..In an apparent breach of national security, the Central Intelligence Agency provided convicted Chinagate figure John Huang with information on corrupt trade deals with Indonesia, according to documents obtained from Huang's files, which included the names and phone numbers of four CIA agents. The original documents that identified the CIA agents were heavily blacked out and marked as being withheld for "national security" reasons. However, Clinton administration officials accidentally included a second un-blacked-out copy, revealing the CIA contacts, with documents for Huang. Judicial Watch, a Washington-based legal watchdog group, obtained documentation on the CIA meetings with Huang as part of a cache of over 200 boxes of materials from the U.S. Commerce Department through a Freedom of Information Act lawsuit. ….."

World Net Daily 2/13/00 Charles Smith "…..During his stay at Commerce, Huang obtained a secret clearance and attended more than 37 classified briefings with the CIA. "Huang clearly had access to commercial information that would have been of keen interest to the Riadys," said Asian defense specialist, and co-author of "Year of the Rat," William Triplett. "That very night Huang called Lippo in Jakarta." "Huang took the Fifth Amendment more than two thousand times when asked by Judicial Watch if he had ties to Chinese intelligence," added Triplett. The newly-released documents from the Commerce Department show that agents from the Central Intelligence Agency met with Huang and representatives from the U.S. Export-Import Bank and the Overseas Private Investment Corporation. ….."

World Net Daily 2/13/00 Charles Smith "…..According to the documents, four CIA agents attended an August 1994 "Trade Policy Coordinating Committee" meeting with Huang on Indonesia. (Editor's note: WorldNetDaily has the names of the CIA personnel but is not publishing them.) The subject of the meeting was U.S. government-financed trade deals that contained "first family involvement" -- a euphemism for kickbacks to relatives of then-Indonesian dictator Suharto. The Huang documents could not have come at a worse time for the newly-declared Hillary Clinton Senate campaign in New York. It was Mrs. Clinton who reportedly had insisted that Huang be given a position at the Commerce Department under Ron Brown…… In addition, Riady has been accused of having passed illegal monies to the 1992 and 1996 Clinton/Gore campaigns. Ominously, the CIA has also accused Riady of working for Chinese military intelligence. …..According to a 1998 CIA report presented to Sen. Fred Thompson, R.-Tenn., "James and Moctar Riady have had a long-term relationship with a Chinese intelligence agency. The relationship is based on mutual benefit, with the Riadys receiving assistance in finding business opportunities in exchange for large sums of money and other help." …… "The Chinese intelligence agency seeks to locate and develop relationships with information collectors, particularly with close association to the U.S. government," states the CIA report on Riady. ….."

World Net Daily 2/13/00 Charles Smith "…..The 1994 meeting between the CIA and Huang included detailed information on a $2.6 billion U.S.-sponsored electric power plant for Indonesia. A 1994 Commerce Department report found in Huang's files noted that the Indonesian "Paiton" power plant had encountered difficulties with financing because the Asian Development Bank knew it contained money for a Suharto family member……. In addition, 1994 documents provided by the Offshore Private Investment Corporation noted that Suharto's daughter Prabowo and her brother-in-law Hashim Djojohadikusumo were given a total "2.5%" ownership in the U.S.-sponsored power project, through their local company BHP……. PLN also obtained similar documents to those found in Huang's files. In 1999, PLN acquired documents that stated Clinton administration officials were aware of "corruption, collusion and nepotism" inside the electric power trade deals made with Indonesia. PLN used the documents to win a lawsuit against the Clinton administration, charging that U.S. officials knew the Paiton power plant contract was "corrupt from the beginning." In December 1999, an Indonesian court ruled that the entire $2.6 billion Paiton power plant contract was illegal. ……"

ABCNEWS.com 2/12/00 Jonathan Dube Martha Raddatz "…..A computer expert in Germany who goes only by the name "Mixter" is believed by some to be the author of the type of software that has been used to attack Yahoo Inc., eBay Inc., Amazon.com, Inc. and other online giants. In an e-mail interview with CNET News.com, Mixter denied any responsibility for the incidents of the past three days but confirmed that he has written programs that appear similar to those used in the attacks. "He's the author. Absolutely," said Gia Threatte, an expert at a computer security site called Packet Storm, who said she communicates with Mixter by phone and e-mail. "When he was coming out with the tools, he worked with us" so that the site could post his software, she said.. ….."

CBSNEWS.com 2/10/00 "……(CBS) FBI officials say they have lots of leads and have even begun interviewing potential suspects in the nation's biggest computer attack case to date, CBS News Correspondent Jim Stewart reports. As to where it all will take them, they admit they still don't have a clue. "You never know who you are dealing with. It could be anywhere from a teenager to even a state sponsored terrorist act of some kind," explains Ron Dick, chief of the FBI's computer investigation section. Agents are at work decoding the return addresses for hacker commands that shut down or stalled some of the world's biggest Internet sites, including Yahoo!, eBay, Amazon.com and CNN, among others. The technique -- called a "denial of service attack" -- involves directing a flood of messages to computers that run Web sites. The effect is comparable to unleashing a wave of calls to tie up a city's phone lines. …..In such attacks, a hacker hides tools known as daemons on hundreds or even thousands of innocent third-party computers. The daemons can be triggered later from a remote location to launch simultaneous attacks, giving false addresses so they are harder to trace. ……"

South China Morning Post 2/12/00 Reuters "…..A former US government scientist charged with illegally copying the ''crown jewels'' of US nuclear weapons secrets has a history of contact with foreign spies, the FBI said in a court filing overnight (HK time). FBI agent Robert Messemer said in secret testimony late last year that Lee Wen-ho had a ''continuing association'' with known or suspected intelligence officers from foreign countries. Mr Messemer said he was ready to discuss ''documented instances of where Dr Lee has repeatedly inserted himself into highly questionable circumstances''. …… "

foxnews.com 2/11/00 "…..Investigators have determined that a University of California computer was used as a middleman in this week's attack on the CNN Internet site, the university said Friday. …… Schmidt said a desktop computer in a research lab at the Santa Barbara campus was electronically broken into by a hacker sometime before Tuesday night's attack on the cable television network's computer Web site. Checking from home near midnight Tuesday, Schmidt discovered an abnormality in the university's computer traffic. By Wednesday morning, he was able to tell CNN that a UC-Santa Barbara computer was involved in the denial-of-service attack on its site. CNN notified the FBI. Schmidt has been assisting the FBI since then in trying to locate the origin of the attack. ….."

LATimes 2/5/00 William Rempel Alan Miller "…..Newly obtained FBI documents show that Democratic fund-raiser Yah Lin "Charlie" Trie smuggled a wealthy Taiwan businessman using a false identity into the White House to meet President Clinton. The incident is among numerous revelations in a confidential summary of Trie's statements to federal investigators that are certain to reverberate during an increasingly contentious election-year debate over campaign finance abuses. The bizarre episode, regarded as a serious breach of presidential security by federal officials, occurred at a White House holiday party Dec. 13, 1996--days before Trie fled the United States to avoid authorities investigating fund-raising improprieties……"

Reuters 2/19/00 "….A senior U.S immigration officer charged with spying for Cuba met often with Cuban intelligence agents and with a Cuban-born New York businessman to relay confidential information, the FBI said on Friday. The FBI said Mariano Faget, a 54-year-old Havana native who was arrested on Thursday in Miami, gave Cuban agents sensitive information about confidential law enforcement sources, Cuban defectors and Cuban Intelligence Service workers who were secretly helping the United States. One of the agents he talked to was from the Cuban diplomatic mission in Washington, the FBI said. Cuban-born Miami residents have in the past been charged with spying for their communist-run native country, but this case was very unusual since it involved a senior officer with a U.S. federal agency. Paul Mallett, who heads the FBI's Miami bureau, told a news conference that further arrests were expected but that at least some of the Cuban agents Faget allegedly dealt with were no longer in the United States. ….. with Cuban intelligence agents, including one who worked at the Cuban diplomatic mission in Washington, the FBI said……"

ZDNet News 2/15/00 Rob Lemos "….In an interview with ZDNN, German hacker says he plans to provide technical aid to U.S. authorities. The "white-hat" hacker known as Mixter, who is reportedly being sought for questioning by the FBI in conjunction with last week's Web-site attacks, expects to talk with the agency within the next 24 hours, he said in an interview Monday with ZDNet News. "I will be talking to the FBI via phone, briefly, about the technical aspects of catching (those responsible for last week's) attack," the hacker -- who claims to be German -- wrote in an interview using Internet relay chat. "I want the attacker to be catched." Mixter is the author of one of the hacking tools thought to be responsible for at least some of the attacks on major Web sites last week. Called the Tribe Flood Network, the program allows even moderately technical Web vandals to shut down Web sites via an attack known as a distributed denial of service. …."

New York Times 2/15/00 "….The federal authorities here have arrested a man they say was trying to leave the country with military technology used in missile guidance systems. In an 18-page affidavit filed Monday in federal court here, officials said the man, Jeffrey Jhyfang Lo, had told undercover agents that the device, an infrared thermal imaging camera, was to be used by the Chinese government on missile and reconnaissance systems…….. The affidavit filed Monday said that Lo had bought the camera from an undercover FBI agent working in a defense contracting company in Santa Barbara, Calif., paying $5,000 in cash and $137,000 in a cashier's check. ...... During the investigation, Lo is said to have requested that a representative of Chinese State Shipbuilding Corp. be allowed to visit the defense contracting company to negotiate the purchase of 38 additional cameras. The corporation has been identified in the Cox Report, an assessment of China's efforts to obtain American technology, as one of China's largest institutions dedicated to the application of technology to China's military. The company's headquarters is in Wuhan. The camera is described by law-enforcement authorities as equipment used to track missiles and in satellite reconnaissance……"

Reuters - South China Morning Post 2/15/00 "…..A man accused of trying to smuggle an infra-red camera used in missile guidance systems to China was charged overnight (HK time) with violating US export laws. Jeffrey Lo, a Chinese-born American citizen, was arrested on Saturday night carrying an infra-red thermal imaging camera and two lenses on board a flight from Los Angeles to Wuhan. Mr Lo was charged with violating the US Arms Export Control Act, which regulates defence articles, services and technical data. He was expected in court by Wednesday (HK time), federal prosecutors said. Thom Mrozek, a spokesman for the US Attorney's Office in Los Angeles, cautioned reporters that Mr Lo had not been charged with espionage. ……."

South China Morning Post 2/15/00 "……A man accused of trying to smuggle an infra-red camera used in missile guidance systems to China was charged overnight (HK time) with violating US export laws. Jeffrey Lo, a Chinese-born American citizen, was arrested on Saturday night carrying an infra-red thermal imaging camera and two lenses on board a flight from Los Angeles to Wuhan. Mr Lo was charged with violating the US Arms Export Control Act, which regulates defence articles, services and technical data. He was expected in court by Wednesday (HK time), federal prosecutors said. Thom Mrozek, a spokesman for the US Attorney's Office in Los Angeles, cautioned reporters that Mr Lo had not been charged with espionage…….US Customs Special Agent Shane Folden said the camera ''has numerous military capabilities, such as use on missile guidance systems, satellite reconnaissance systems and detecting ships and aircraft at night''. Mr Folden, the agent in charge of the investigation, said Mr Lo paid an undercover FBI agent working for a defence contracting company $142,000 for thecamera. He allegedly told the agent that it would be used for ''missile and reconnaissance systems in the PRC''. ….."

CNN 2/26/00 "……Cuban diplomat Jose Imperatori has been escorted out of the United States by FBI agents, after he was expelled for alleged links to a U.S. immigration official charged with spying for Havana, according to a statement from State Department spokesman James Rubin……. "At 8:45 p.m. EST today, the Cuban diplomat we declared persona non grata on February 19 was escorted by the Federal Bureau of Investigation to Washington National Airport, from where he departed the United States," Rubin said late Saturday. "The diplomat in question no longer enjoys the privileges and immunities conferred by the Vienna Convention on Diplomatic Relations. He has been expelled from the United States for not voluntarily departing by the appointed time. We do not have any further comments on the case." ......"

Los Angeles Times 2/26/00 Eric Lichtblau Ronald Ostrow "…..Four years ago, a senior Justice Department official quietly acknowledged to the department that he had revealed secrets about a New York City anti-terrorism operation to the authors of an upcoming book. ...... Despite an in-house call that the official should be disciplined, he escaped formal punishment. But now, amid stepped-up concerns about how the government protects its secrets, the case of Richard Scruggs is drawing new scrutiny because of some troubling questions. First, did the Justice Department go easy on Scruggs, a friend of Atty. Gen. Janet Reno from her days as a prosecutor in Florida? And perhaps just as worrisome, did Justice Department officials mislead U.S. District Judge Royce Lamberth--head of one of the nation's most powerful and secretive courts--by not disclosing their findings to him? ……… "This was more than an ordinary leak," said John L. Martin, who headed the Justice Department espionage investigations unit at the time. "This was a horribly egregious offense, and it goes to the very heart and essence of how you operate in combating terrorism and how you handle secret information." ...... Such issues have taken on newfound resonance in recent months because of the cases of two other federal employees who allegedly compromised government secrets: Wen Ho Lee, the Los Alamos National Laboratory nuclear scientist charged with downloading massive amounts of classified data onto an unsecured computer, and former CIA Director John M. Deutch, who used several unprotected home computers to write confidential memos to President Clinton and for other highly classified work. ……"

Los Angeles Times 2/26/00 Eric Lichtblau Ronald Ostrow "…..At the center of the Scruggs case is a book called "Main Justice," published in 1996. Written by journalists Jim McGee and Brian Duffy, it details the inner workings of the Justice Department. The book, along with a shortened adaptation published in the Washington Post Magazine a few months earlier, focused in part on the increased use of secret wiretaps by federal authorities. These wiretaps were authorized by the secret court headed by Lamberth. Meeting in secret, it has the power to permit federal prosecutors and FBI agents to sidestep normal constitutional protections when they undertake wiretaps, surveillance and searches against suspected terrorists or agents of a hostile foreign government. ......At the Foreign Intelligence and Surveillance Act Court, headed by Judge Lamberth since 1995, the judges were equally concerned. Lamberth recalled in an interview that he was shocked when he first saw in the McGee-Duffy book what were purported to be details on the secret workings of his court. It marked "an apparent breach. . . . It was obvious that someone from inside the Justice Department or the FBI had to be giving out classified information. I didn't understand that." Troubled, Lamberth said that he contacted the Justice Department to find out what had happened. He never heard anything back, he said, and "as far as I know, they were never able to determine the source." If Justice Department officials did in fact determine the possible source without taking proper action--or without telling the court--"that would be troubling," he said. "Just philosophically, I think when you identify someone who has been improperly leaking protected material, you've got to deal with it." ……"

Associated Press 2/19/00 "…..The State Department ordered the expulsion Saturday of a Cuban diplomat linked to the Cuban-born U.S. immigration official arrested in Miami on spy charges. The diplomat, whose name was not released, was given seven days to leave the country, spokesman James Foley said. The Cuban official was ordered out of the country for activities ``incompatible with his diplomatic status,'' Foley said. Although Foley did not go into detail, the diplomat apparently was a Washington contact of Mariano Faget, a 34-year veteran of the Immigration and Naturalization Service who was arrested Thursday night as the results of a government sting operation. ….."

Agency France Presse 2/19/00 "…. The FBI believes US immigration official Mariano Faget, arrested on charges of spying for Cuba, had contacts with at least three people also suspected of involvement in Cuban espionage, the Miami Herald reported Saturday. Two of the three are thought to have left the United States, the Herald said. One is a Cuban-American businessman living in New York, whom US law enforcement officials believe may now be in China, according to the report. The other is an intelligence official who was assigned to Cuba's Interests Section in Washington but returned to Havana last year, a US official told the paper. State Department officials declined to say whether the third espionage suspect, also an intelligence officer at the Interests Section, would be expelled from the United States……"

ABCNEWS.com 2/17/00 "……The FBI says it has arrested a U.S. Immigration and Naturalization Service official and charged him with spying for Cuba. Mariano Faget, 54, has been charged with "communicating national defense information to an unauthorized person" and making false statements to federal authorities, FBI officials in Miami said. An FBI surveillance operation revealed that Faget had made unauthorized contacts with Cuban intelligence officers in Miami and other U.S. cities, an FBI press release said this evening……."

Washington Post 2/19/00 David Vise "….. Eight days ago, Mariano Faget, an immigration supervisor in Miami born in Havana, was summoned to a meeting with senior U.S. officials who sought his advice on the imminent defection to the United States of a high-ranking Cuban intelligence officer and then asked him to prepare asylum papers. Twelve minutes after the meeting, according to documents filed in federal court, Faget, 54, returned to his office, grabbed his personal cell phone and called a New York businessman, telling him that "one of the ones working with the Americans" is "a person we both know." What Faget didn't know was that he was the target of a sting, code-named "Operation False Blue," and that FBI agents were listening to him as he tipped the New Yorker, who was about to meet with a Cuban intelligence officer. …."

Miami Herald Online 2/18/00 Elaine De Valle Marika Lynch "…… A high-ranking Miami official with the Immigration and Naturalization Service was arrested by FBI agents Thursday for allegedly spying for the Cuban government. Mariano Faget, 54, a 34-year veteran, is acting district deputy director for examinations. He holds a ``secret'' security clearance at INS, according to a statement by the FBI. He supervised adjudication and naturalization decisions, including granting of permanent residence status and political asylum…….. Bergeron said Faget will be placed on administrative leave. ……..Faget, who was born in Havana, waited in those lines with his father at the beginning of 1960, when they went to INS to claim political asylum. He became a citizen Nov. 22, 1963 -- the same day that President John F. Kennedy was assassinated in Dallas. ``I remember that many people started crying and there was even a person who got up and said they were going to change their name to John,'' he was quoted as saying in the article. ``I laughed because I thought it was a joke to see how much we loved this country and its president.'' ….."

 

AP 3/10/00 "…..Eight Iranian Defense Ministry officials are under federal indictment here for trying to obtain military secrets and smuggle them out of the country in 1996, the U.S. Customs Service said. Special agent Brian Buschini said the indictments, handed up in November 1996 and January 1997, remain sealed. But he said in today's Great Falls Tribune that authorities decided to release some information in the hope the public will identify at least one of the eight who is known to travel extensively in the United States and Europe. Buschini would not say what secrets the Iranians allegedly tried to obtain, but said their success would have significantly compromised U.S. military abilities in the Middle East and enhanced the Iranian military. He said the Iranians - including at least one general and one colonel - live in Tehran and operate under the name "Engineering Consortium of Iran." They were actively recruiting in the United States and Canada to try to get the military items, Buschini said……"

Reuters 3/3/00 Eric Auchard "…..A 17-year-old New Hampshire computer junkie known as ``Coolio'' may be charged in a handful of vandalism incidents at private and government Web sites, but is no longer a suspect in last month's attacks on major sites, U.S. federal law enforcement sources said on Friday. Coolio was one of scores of teen-agers who took part last year in a loose-knit group dubbed Global Hell that broke into Web sites for the White House, the Federal Bureau of Investigation (FBI) and the Army, several one-time members of the group said...."

 

Drudge 3/25/00 Sally Pook "……TWO teenagers from a village in west Wales have been arrested over allegations of an international computer hacking scheme, following an investigation by the Federal Bureau of Investigation and British police. The 18-year-olds, from Clynderwen, near Whitland, west Wales, were arrested by FBI agents and police officers who seized their £700 home computer in a raid on the village. Officers suspect them of illegally hacking into business computers in the United States, Canada, Thailand and Britain and the theft of credit card information. The teenagers were released on police bail after being questioned...."

UPI 4/17/00 Lou Marano "…….A laptop computer that is believed to hold top-secret information has vanished from the State Department, the Washington Post reported Monday. The FBI is reportedly investigating whether the computer was stolen, and the State Department has launched an internal investigation. Assistant Secretary of State James P. Rubin confirmed the disappearance Monday. "Earlier this year, the Bureau of Diplomatic Security received a report of a missing laptop computer from an office here at the State Department. As there is a possibility that classified information may have been compromised, this matter is now the subject of a joint FBI-Diplomatic Security investigation. The FBI has had the lead in this investigation," he said, referring reporters to the FBI for comment. ……."

Reuters 4/17/00 Jonathon Wright "……..A laptop computer which may have held classified information disappeared from the State Department about two months ago and the FBI is investigating whether it was stolen, the State Department said Monday. The Washington Post said the computer disappeared from the department's Bureau of Intelligence and Research and definitely contained highly classified information. It quoted a senior State Department official as saying the laptop's disappearance, from a supposedly secure conference room at the department, set off an intense effort to recover the computer and a search for suspects, including contractors who had been renovating the area. Another person familiar with the incident said the missing computer contained code-word information, a classification higher than top secret, including sensitive intelligence information and plans. ……."

Reuters 4/17/00 Jonathon Wright "……..In 1999 FBI agents discovered a Russian spy lurking outside the department and then found an eavesdropping device in a conference room that they believed he had been monitoring. In 1998 a man in a tweed coat strolled into the executive secretary's office, six doors away from Albright's office, helped himself to a sheaf of classified briefing materials in plain view of two secretaries and walked out. He was never identified and the materials were not recovered. ……."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………This is the story of a spy who got away. Or, more precisely, it is the story of a man who gave U.S. nuclear secrets to the People's Republic of China and for his crime was sentenced to 12 months in a halfway house. It is yet another story of the decline of the Justice Department during the presidency of Bill Clinton and the attorney generalship of Janet Reno -- a tale woven from twisting and overlapping strands of bureaucratic timidity, indifference and, perhaps, something far more troubling than that. In a public hearing on April 5, 2000, frustrated because the Justice Department was stonewalling his special subcommittee investigation of the case, Sen. Arlen Specter, R-Pa., said, "It may well be that the Justice Department is guilty of obstruction of justice." ….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………This spy story begins in 1984 at the Los Alamos National Laboratory in New Mexico, one of three laboratories, along with the Sandia National Laboratory (also in New Mexico) and the Lawrence Livermore National Laboratory (in the San Francisco Bay Area), at which the U.S. Department of Energy develops and designs nuclear weapons. ………At the time, Los Alamos employed a 45-year-old scientist named Peter Hong-Yee Lee. Lee was an immigrant from Taiwan who, in 1975, armed with a Ph.D. in aeronautics from the California Institute of Technology, became a naturalized U.S. citizen. He went to work for TRW, a U.S. defense contractor, then for the Lawrence Livermore Lab, and then, in 1984, for Los Alamos. ………… Lee's work at Los Alamos was connected to a program on the cutting edge of nuclear-fusion technology that 16 years later is still not fully developed. It involved a device called a hohlraum, which the U.S. government intends to use as the basis for creating computer models to simulate hydrogen bomb detonations………. It's like having a pinhead hydrogen bomb blow up in a bottle. The value of this to the U.S. nuclear weapons program is immense…….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………It was with some of that expertise in his head that Peter Lee traveled to China for a three-week visit, starting just before Christmas 1984. While in China, Lee spoke with members of the China Academy of Engineering Physics, or CAEP, the branch of the Chinese government responsible for all of China's nuclear weapons development programs. …….. On Jan. 9, 1985 -- according to unclassified information put together by Specter's investigators and from sworn public testimony by the FBI -- a CAEP scientist visited Lee in his Beijing hotel room….. Lee then had what the FBI describes as a "detailed conversation" with the scientist, in which he revealed information that he knew to be classified. ……… In a meeting that lasted "approximately two hours," the FBI later testified, Lee "answered questions from the group and drew several diagrams for them, including several hohlraum diagrams, specific numbers which described the hohlraum design and experimental results, and he discussed some problems the U.S. was having in its weapons research, in simulations programs." Lee also discussed with the Chinese scientists a classified paper he had written in 1982. ……."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………The "data provided by Dr. Lee," the Department of Energy concluded, "was of significant material assistance to the PRC in their nuclear weapons development program. For that reason, this analysis indicated that Dr. Lee's activities have directly enhanced the PRC nuclear weapons program to the detriment of U.S. national security." …….. Yet, when Lee returned from Beijing on Jan. 19, 1985, his superiors at Los Alamos did not know what he had done in China. So, he continued his work in the nuclear weapons program. ……….. In 1991, Lee left Los Alamos to work again for TRW. But he continued to be involved in nuclear-weapons-related technology. TRW was then just starting a research program with the Department of Energy's Lawrence Livermore lab, the British government, and other U.S. defense contractors, that was aimed at developing a radar system that could track submerged submarines. ……"

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………In April 1991, about the same time Lee started on the radar project at TRW, the FBI received "sensitive information" about him that caused the bureau to open an espionage case. In 1993, the FBI upgraded the case to a full investigation code-named "Royal Tourist," probably in reference to Lee's frequent travel to China. (Between 1980 and 1997, he visited Beijing five times.) In early 1994, the bureau determined it needed to put Lee under electronic surveillance and prepared the special Foreign Intelligence Surveillance Act warrant needed to do so. …….. In the 20-year history of FISA, the Justice Department has only twice refused to allow the FBI to take a warrant application to the court….. In February 1994, there was no such problem. The Justice Department concurred with the FBI that Peter Lee should be placed under electronic surveillance. A FISA judge approved the warrant. ………. Every 90 days, for more than three years, the FBI went back to Justice for re-approval of the warrant. Every 90 days, Justice approved. ……"

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………Then on April 30, 1997, while under FBI surveillance, Lee departed on another Beijing vacation. In a travel-request form that he filled out for TRW before his departure, Lee said he was going to China for the fun of it, and would pay his own expenses. In reality, the Chinese government was paying for the trip through a subsidiary of the China Academy of Engineering Physics. ……….. Said the Cox Committee: "Lee ... passed to PRC weapons scientists, classified research into the detection of enemy submarines under water. This research, if successfully completed, could enable the PLA to threaten previously invulnerable U.S. nuclear submarines. …….. "Specifically, on or about May 11, 1997, Lee gave a lecture in Beijing at the PRC Institute of Applied Physics and Computational Mathematics (IAPCM). Among the attendees were nuclear weapons scientists from the IAPCM and the China Academy of Engineering Physics (CAEP). "Lee described for the PRC weapons scientists the physics of microwave scattering from ocean waves. Lee specifically stated that the purpose of the research was anti-submarine warfare. "At one point in his presentation, Lee displayed an image of a surface ship wake, which he had brought with him from the United States. He also drew a graph and explained the underlying physics of his work and applications. He told the PRC scientists where to filter data within the graph to enhance the ability to locate the ocean wake of a vessel. "Approximately two hours after his talk was over, Lee erased the graph and tore the ship image 'to shreds' upon exiting the PRC institute." ……."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………When Lee returned from Beijing, the FBI decided to have him in for a little chat. An agent from the bureau's Los Angeles office met with Lee on June 25, 1997, for a "non-confrontational interview." In this interview, as Daniel Sayner, the assistant special agent in charge of the FBI's Los Angeles office, later testified, "Lee lied to the FBI, stating that he engaged in no technical scientific discussion with the People's Republic of China, PRC, and that he paid for the trip himself." ………. "Peter Lee admitted that he traveled to the PRC with the intention of giving scientific lectures to the PRC scientists. In addition, Peter Lee admitted to agents that he lied when he said that he had not received requests from foreign nationals for technical information and lied when he said no attempts were made to persuade him into reviewing or discussing classified information. "Peter Lee admitted he had received requests from foreign nationals for technical information and attempts were made to persuade him into reviewing/discussing classified information. Lee also admitted that he did not report personal contacts with several PRC scientists in January 1993 and April 1994, when they visited the United States. ……."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………Several days after his Aug. 14 FBI interview, Lee contacted a government scientist in China and, according to Sayner's testimony, "requested him to provide receipts indicating that he had made that trip to PRC and asked him if those receipts contained his and his wife's name in English and that they were paid in cash. "On Sept. 3, 1997," Sayner said, "Peter Lee then provided agents of the FBI with copies of the hotel and airline receipts for his 1997 May trip to the PRC, which appeared to indicate that Peter Lee paid cash to cover his expenses for the trip. Peter Lee did not pay ... for the trip to the PRC." On the same day he gave the FBI the bogus receipts, Lee had a stroke of luck: The FBI's Foreign Intelligence Surveillance Act warrant to keep him under electronic surveillance expired and was not renewed. Just why it was not renewed remains a matter of dispute. ……"

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………Sayner explained the FBI's view on March 29 in sworn testimony to Specter's subcommittee. It came in an exchange with Sen. Robert Torricelli, D-N.J.:
Torricelli: "When the FISA coverage of Dr. Lee expired in September 1997, was there consideration made to reapply for FISA coverage?"
Sayner: "Yes, senator."
Torricelli: "And what was the determination?"
Sayner: "We made an application to our headquarters and there was discussion between our headquarters, and there was between our headquarters and Department of Justice to renew at that time."
Torricelli: "And what was the determination."
Sayner: "Not to renew." ……."We have uncovered a discrepancy since last week's hearing," said Grassley, "and I think it's something we need to get to the bottom of. "Last week, we received testimony from the FBI's Daniel Sayner, from the Los Angeles office. He was asked about the FISA coverage expiring September '97 and if there was a request for it to be renewed. Mr. Sayner said yes, but ... it was turned down by the Justice Department because the activity in question was stale. "This week, representatives from the Justice Department briefed us that there was no such record of their turning down a FISA renewal, and they would never have characterized the activity as stale for what they called obvious reasons." ……… The remarkable timing and lack of a Justice Department record are only the first and second odd circumstances surrounding the cancellation of Lee's FISA warrant. The third is even more curious: The Peter Lee warrant cancellation came within weeks of the Justice Department's refusal to allow the FBI to go to the FISA court and request a warrant to begin surveillance on Dr. Wen Ho Lee, a scientist suspected of nuclear espionage at the Los Alamos National Lab. …….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………In a March 7 hearing, Specter asked FBI Director Louis Freeh to quantify how unusual it was for the Justice Department not to approve an FBI request to seek a FISA warrant.
Specter: "Do you know, Director Freeh, how many times there has been a declination, a refusal by the Department of Justice to forward the FBI's request to a court for a FISA warrant?"
Freeh: "It's been a very rare occasion, in my experience."
Specter: "Has there been any occasion, other than this one, with Dr. Wen Ho Lee, to your knowledge?"
Freeh: "There have been occasions where, you know, the application has gone back and forth between the department and the FBI, which is exactly the way the process is designed, as a collaborative process. So the application is not rejected, but it's sent back for additional work and review. In this particular case, there was a rejection at the end of all the deliberations. And this was a very rare case in my experience."
Specter: "Do you know of any other case where there was a rejection at the end of the deliberation -- the back and forth process, as you describe it?"
Freeh: "Only one other case."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………The FBI brought the information to Jonathan Shapiro, who worked in the U.S. Attorney's Office for the Central Division of California. Shapiro -- now chief of staff to Cruz Bustamante, the Democratic lieutenant governor of California -- was a prosecutor with stellar credentials. A Harvard grad with both a bachelor's and master's degree in history, he attended Oxford on a Rhodes Scholarship, where he received a second master's degree, before moving on to Boalt Hall, the law school at the University of California at Berkeley…….. His first instinct, he said, was "to put cuffs on" Lee "and let him taste incarceration." "From my standpoint," Shapiro said, "the most important leverage that we could have had on Peter Lee was through an arrest, and it was my desire to arrest him as soon as the confession was obtained." But because it was an espionage case, Shapiro needed to get approval for the arrest from the main office of the Justice Department. The approval was denied, and Lee was left free on the streets. Shapiro discussed the denial with the committee:……
Grassley: "[W]hy weren't you allowed to arrest Mr. Lee, and did main Justice have a rationale?"
Shapiro: "As I recall, senator, the request was made of main Justice from the U.S. Attorney's Office after my supervisors at the U.S. Attorney's Office reviewed the matter for some period of time. The affidavit was sent to main Justice, and the decision not to go forward with the arrest, as I recall -- and I don't have documents here, but as I recall -- the decision was based in part because of the need for an assessment of the information that Peter Lee had passed.
"That is, main Justice did not want to proceed with an arrest warrant until they had an opportunity to assess what it is that he passed to determine, first of all, if in fact it was classified."
There was a debate, Shapiro explained, as to which laws should be cited in an indictment of Lee. There were three possibilities: 18 USC 1001, which makes it a felony to give a false statement to a federal agency; 18 USC 793, which makes it a felony to communicate national defense information to people not entitled to it; and 18 USC 794, which makes it a felony to communicate information to a "foreign power" that "directly concerned nuclear weaponry, military spacecraft or satellites, early warning systems, or other means of defense or retaliation against large scale attack ... or any other major weapons system or major element of defense strategy."
The 793 law carried a 10-year statute of limitations and a maximum penalty of 10 years in jail. The 794 law had no statute of limitations and carried a maximum penalty of capital punishment.
Said Shapiro: "I think they [the Justice Department] felt if you're going to arrest somebody on 1001, but you're going to make reference to potential 794 charges, this becomes a very public case. My feeling was, obviously, that the complaint and the arrest warrant would be sealed and that we wouldn't necessarily have to get into that. Nevertheless, DOJ had to go to the Navy, had to go to the Department of Energy and had to get information before they could make an assessment as to the damage, before they could give me the approvals."
During this time, the un-arrested Lee was a risk to flee the country.

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………Shapiro was ready to charge Lee not only with lying to a federal agency but also with a Section 794 espionage charge on the 1985 hohlraum disclosures and a 794 espionage charge on the 1997 radar disclosures. ……. "In my view," Shapiro told the committee, "coupling the 1985 charge with the 1997 charge, with what I thought was a dead-bang case -- and I think there's total agreement on the false statement, the 1001 case -- those counts added together. I felt I was going to convict him of something, and I had a very strong sense that at sentencing all that information could have been considered by a judge." But the Justice Department would not allow it..........John Dion, the acting chief of the Justice Department Internal Security Section, and Michael Liebman, the criminal division attorney immediately supervising the case, decided Shapiro should go for a plea agreement. John Keeney, then the acting assistant attorney general in charge of the criminal division, approved it. He also testified that he never discussed the case with Janet Reno. The same attorney general who has become fixated on deporting Elián González apparently had no interest at all in providing leadership in the prosecution of one of the most important spy cases in recent history. ……. So the bureaucrats of the Justice Department denied Shapiro the authority he wanted to charge Lee with the more serious 794 espionage offense. But they allowed him to bluff Lee by using the threat of such a charge as leverage in negotiations. ….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………What Justice wanted was for Lee to waive the 10-year statute of limitations on a lesser 793 espionage charge for his 1985 disclosures, plead guilty to a 1001 false statement charge for filing false travel reports in 1997, and agree to cooperate with the FBI. In return, they would ask the sentencing judge to give Lee a short period of incarceration. A 1997 espionage charge -- for the radar ocean imaging disclosures -- was not even put on the table. Lee grabbed the deal. On Dec. 8, 1997, he agreed to cooperate with the FBI and pleaded guilty to one count of violating 18 USC Section 793 and one count of violating 18 USC 1001. The ballgame was over. …….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………At his own sentencing, Lee told the judge he had disclosed information to the Chinese because of his "camaraderie" with Chinese scientists. "Words cannot describe how remorseful I feel for the terrible mistake I made," he said. "I violated a sacred oath to protect our nation's secrets." The judge gave the spy a five-year suspended sentence, a $20,000 fine, 3,000 hours of community service, and ordered him to spend one year in a halfway house. ….."

Worldnet Daily-2000, Human Events 4/17/00 Terence Jeffrey "………For months, as Arlen Specter struggled to get information out of the Justice Department to complete his investigation of this case, the Department stalled. Finally, he determined to subpoena the so-called line attorneys involved in the case -- men such as Shapiro and his supervisor, Liebman. Janet Reno vehemently objected to the move. It was the morning after an April 4 meeting with Reno on this subject that Specter, in a hearing, revealed, "It was only last night that we received from the Department of Justice, information that the Department of Energy damage assessment had been provided to the Department of Justice, a fact concealed from this committee. "We're going to inquire about that as well. It may well be that the Department of Justice is guilty of obstruction of justice, and we intend to get to the bottom of that." ……… But in his prepared written testimony, Liebman made a truly stunning revelation: "Another reason for the declassification [of hohlraum technology], I was told," he said, "was that the DOE considered it to be in the U.S. national interest to educate countries on how to simulate nuclear weapons explosions in a laboratory setting, in order to discourage them from actually detonating nuclear devices." In other words, an illegal act of espionage that contributed to nuclear weapons development in a communist power in 1985, became in 1993, an act that forwarded the policy of the Clinton administration to help such a power develop nuclear weapons. This, at least, is what a Justice Department lawyer seemed to be claiming, under oath, in a public hearing, in carefully prepared written testimony. This is unlikely to be the last extraordinary revelation from Sen. Specter's special subcommittee investigation. ........."

May 8th SF Examiner "…….. Israeli experts and media said a misunderstanding over the code name "Mega" was apparently responsible for the report of the possible Israeli spy scandal. ……. The Post said that the individual known as "Mega" in a communication intercepted by the National Security Agency was believed to be a U.S. official whose help Israel was seeking. …..But Israel's Haaretz newspaper said "Mega" appeared to be a mistaken decoding of the word "Elga" - an old Israeli intelligence word for the CIA. …."

5/7/97 Charles R. Smith "……. NBC is reporting this morning tha the FBI is investigating intercepts obtained from Israeli agents in the US. NBC stated that the intercepts indicate Israel has a spy placed "very high" in the Clinton administration. Israel is, of course, denying the FBI statements. ……"

Washington Times 5/9/00 Frank J. Gaffney Jr. "……. In an explosive article published Friday, Insight Magazine's J. Michael Waller and Paul M. Rodriguez warn of a "foreign espionage operation that could dwarf the other spy scandals plaguing the U.S. government" - an operation involving the apparent, wholesale penetration by Israeli intelligence of secure telephone lines and networks serving the White House, State and Defense Departments and FBI, among other agencies……… Unfortunately, if Insight's characterization of the scope of this sophisticated act of espionage is confirmed, it will be just the latest evidence that the Clinton-Gore administration is bequeathing to its successor a legacy of indifference to basic security procedures whose terrible costs may not be fully understood for years to come……"

Washington Times 5/9/00 Frank J. Gaffney Jr. "…….The following are among the most important portions of the 15,000-word article published on Insight's web site on May 5:

• "More than two dozen U.S. intelligence, counterintelligence, law-enforcement and other officials have told Insight that the FBI believes Israel has intercepted telephone and modem communications on some of the most sensitive lines of the U.S. government on an ongoing basis….."

• "The problem for FBI agents in the famed [counterintelligence] Division 5, however, isn't just what they have uncovered, which is substantial, but what they don't yet know, according to Insight's sources interviewed during a yearlong investigation by the magazine. Of special concern is how to confirm and deal with the potentially sweeping espionage penetration of key U.S. government telecommunications systems allowing foreign eavesdropping on calls to and from the White House, the National Security Council, or NSC, the Pentagon and the State Department."

• "For nearly a year, FBI agents had been tracking an Israeli businessman working for a local phone company. The man's wife is alleged to be a Mossad officer under diplomatic cover at the Israeli Embassy in Washington…... When federal agents made a search of his work area they found a list of the FBI's most sensitive telephone numbers, including the Bureau's 'black' lines used for wiretapping. Some of the listed numbers were lines that FBI counterintelligence used to keep track of the suspected Israeli spy operation. The hunted were tracking the hunters."

• " 'The FBI uncovered what appears to be a sophisticated means to listen in on conversations from remote telephone sites with capabilities of providing real-time audio feeds directly to Tel Aviv,' says a U.S. official familiar with the FBI investigation…..'"

• " 'This is more than just a technical blunder,' says a well-placed source with detailed knowledge of White House security issues. 'This is a very serious security failure with unimaginable consequences.'"......"

Newsday 5/3/00 "…… It was revealed Wednesday that the laptop PC which went missing from the State Department's Bureau of Intelligence earlier this year may have contained information that could compromise some of the nation's key intelligence sources. CNN says that officials have told them that the laptop contained top secret information about the sources and methods used to gather raw intelligence. "That could include anything from, say for example the identity of a US agent working for a foreign power to the technical capabilities of a spy satellite" the CNN report said. It was revealed that the laptop contained "raw data" from which "bare bones" reports are distilled for US diplomats. ….."

Reuters 5/3/00 Elaine Monaghan "……. Secretary of State Madeleine Albright issued a furious warning to U.S. diplomats around the world on Wednesday, saying whatever skills they had meant nothing if they failed to protect security. She was speaking at a subdued meeting of more than 800 staff, transmitted live on an internal State Department channel and piped digitally to missions around the world, following the planting of a listening device last year and the disappearance of a laptop computer containing secrets three months ago. ``Security is an inherent, inextricable and indispensable component of all our jobs,'' she told the packed auditorium. ``You may have seen reports indicating that I am furious about these incidents. Well, I am, and hope you are too,'' she declared….. "

Wall Street Journal 5/1/00 Oliver "Buck" Revell "….. The State Department has experienced yet another major security lapse -- the loss of a laptop computer belonging to its Bureau of Intelligence and Research. The computer apparently contained "code word" material that is more sensitive than even "secret" documents. Yet officials did not promptly report the loss….."

Wall Street Journal 5/1/00 Oliver "Buck" Revell "…..In December, an intelligence officer assigned to the Russian Embassy in Washington was expelled from the U.S. after he was discovered operating a listening device in a seventh-floor conference room at the State Department. No one has yet explained how the "bug" was planted in such a sensitive location or who planted it. ……."

Wall Street Journal 5/1/00 Oliver "Buck" Revell "….. The Central Intelligence Agency was severely embarrassed when it found out that its former director, John Deutch, had placed highly classified information on his personal computer and then used this computer to send and receive unsecured e-mail. This made all of the data contained in the computer subject to compromise. Once again, this breach of security was not promptly reported. ……"

Wall Street Journal 5/1/00 Oliver "Buck" Revell "….. The apparent loss to the People's Republic of China of highly classified data on American nuclear weapons from one or more of our national laboratories is one of the most egregious security breaches in our history……. China obtained by espionage classified U.S. nuclear information that probably accelerated its program to develop more advanced nuclear weapons. ….. China obtained at least basic design information on several modern U.S. nuclear re-entry vehicles, including the Trident II. …… China obtained information on a variety of U.S. weapon designs, including the neutron bomb. ……"

Wall Street Journal 5/1/00 Oliver "Buck" Revell "….. Then we have the sorry spectacle of Chinese influence-peddlers and, in at least one instance, a Chinese military official being paraded into the White House to meet President Clinton in return for significant campaign contributions. I cannot recall a single instance in my 35 years of government service when senior National Security Council staffers would have hesitated to inform their superiors of intelligence about a foreign government's attempt to influence our political process. But that is exactly what happened with information developed by the FBI concerning illegal campaign contributions by intermediaries of the Chinese government……."

Washington Post 4/22/00 Steven Mufson "……. The laptop computer missing from the State Department contained thousands of classified documents about arms proliferation issues, including highly sensitive information about the sources and methods of U.S. intelligence collection, State Department officials said yesterday. The State Department still has not found the computer, which vanished in January from a conference room, according to a senior State Department official. Its disappearance was reported to the department's Bureau of Diplomatic Security in early February, according to another official. If the laptop was stolen for the information it contained about the spread of sophisticated weapons technology, the theft would represent one of the most serious single losses of classified information ever by the United States, said a source familiar with the case. ……"

AP 4/22/00 "…….A laptop computer missing from the State Department since January contained highly sensitive information about U.S. intelligence gathering, The Washington Post reports. If the laptop was stolen for information about weapons technology, the theft would be one of the most serious losses of U.S. classified information ever, the Post said Saturday, quoting an unidentified source familiar with the case. The computer vanished in January from a State Department conference room, and its disappearance was reported in early February to the department's Bureau of Diplomatic Security, officials told the newspaper. The Post said the missing computer contained thousands of highly classified documents about arms proliferation issues, including sensitive secrets about how the United States collects intelligence and sources of the information. The computer also reportedly contained information about the spread of missile technology and nuclear, chemical and biological weapons. ….."

Reuters 5/5/00 "…… One day after she berated Foreign Service employees for security lapses, Secretary of State Madeleine Albright admitted that the State Department was missing two more laptop computers. The Washington Post reported Friday that Albright testified Thursday before a House Permanent Select Committee on Intelligence that two unclassified laptops were missing. One of the missing machines was assigned to Morton Halperin, assistant secretary of state for policy and planning. Although Halperin said he had not used the computer, others in his office may have used it for tracking expenses and routine memos, the newspaper reported. State Department spokesman Richard Boucher told the Post, "This was not a classified machine, and as best we can well it never had any classified material on it."….. "

J. Orlin Grabbe 5/6/00 "…….A foreign spy service appears to have penetrated secret communications in the Clinton administration, which has discounted security and intelligence threats. ……… The FBI is probing an explosive foreign-espionage operation that could dwarf the other spy scandals plaguing the U.S. government. Insight has learned that FBI counterintelligence is tracking a daring operation to spy on high-level U.S. officials by hacking into supposedly secure telephone networks. The espionage was facilitated, federal officials say, by lax telephone-security procedures at the White House, State Department and other high-level government offices and by a Justice Department unwillingness to seek an indictment against a suspect. The espionage operation may have serious ramifications because the FBI has identified Israel as the culprit. It risks undermining U.S. public support for the Jewish state at a time Israel is seeking billions of tax dollars for the return of land to Syria. It certainly will add to perceptions that the Clinton-Gore administration is not serious about national security. Most important, it could further erode international confidence in the ability of the United States to keep secrets and effectively lead as the world's only superpower. ……."

AP 5/5/00 Barry Schweid "…..Some of the computers at the State Department used for classified material are not equipped with passwords and other security features, a senior U.S. official said Friday. …… Describing the computers as of the ''off-the-shelf'' variety, the official said he did not know whether a laptop computer discovered missing in February from the department's Bureau of Intelligence and Research had the devices. ……. The department confirmed Friday that two other laptop computers had disappeared, but only the one that vanished in February is known to have contained secret information. ……. Disclosure that some computers are not equipped with protective devices was the latest twist in the State Department's security situation and tensions between Congress and the department. ……"

Associated Press Online 5/6/00 Michael Sniffen "……..The Justice Department is conducting a new criminal investigation of whether former CIA director John Deutch violated the law in mishandling secrets on his home computer, officials say. ….. The inquiry represents the second time the department has looked into the matter, reflecting what top Justice officials say is their concern that Deutch be held to the same standards applied to Taiwan-born American nuclear scientist Wen Ho Lee, whom the government charged earlier this year with mishandling atomic weapons secrets on computers at the Los Alamos National Laboratory…….. Lee's attorneys have publicly challenged his indictment, citing the department's decision in April 1999 not to prosecute Deutch for storing numerous classified CIA documents on an unsecured computer in his home, which was used by his children to connect to the Internet. ……."

Washington Post 5/6/00 "…… The FBI investigated an allegation that Israeli spies had penetrated the White House and other government telephone systems, but more than a year of extensive work found no evidence of any breach, two senior federal law enforcement officials said yesterday. The two officials, who requested anonymity, said the FBI had identified no one to arrest during its investigation. …..The probe is technically not closed, this official said. But it was described as being in the "pending inactive state because the allegation is so serious and in case something develops." ….."

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The FBI is probing an explosive foreign-espionage operation that could dwarf the other spy scandals plaguing the U.S. government. Insight has learned that FBI counterintelligence is tracking a daring operation to spy on high-level U.S. officials by hacking into supposedly secure telephone networks. The espionage was facilitated, federal officials say, by lax telephone-security procedures at the White House, State Department and other high-level government offices and by a Justice Department unwillingness to seek an indictment against a suspect. …….. More than two dozen U.S. intelligence, counterintelligence, law-enforcement and other officials have told Insight that the FBI believes Israel has intercepted telephone and modem communications on some of the most sensitive lines of the U.S. government on an ongoing basis. The worst penetrations are believed to be in the State Department. But others say the supposedly secure telephone systems in the White House, Defense Department and Justice Department may have been compromised as well……"

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The directors of the FBI and the CIA have been kept informed of the ongoing counterintelligence operation, as have the president and top officials at the departments of Defense, State and Justice and the NSC. A "heads up" has been given to the House and Senate Intelligence Committees, but no government official would speak for the record……... "We're not even sure we know the extent of it," says a third high-ranking intelligence official. "All I can tell you is that we think we know how it was done," this third intelligence executive tells Insight. "That alone is serious enough, but it's the unknown that has such deep consequences……."

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….A senior government official who would go no further than to admit awareness of the FBI probe, says: "It is a politically sensitive matter. I can't comment on it beyond telling you that anything involving Israel on this particular matter is off-limits. It's that hot………. It is very hot indeed. For nearly a year, FBI agents had been tracking an Israeli businessman working for a local phone company. The man's wife is alleged to be a Mossad officer under diplomatic cover at the Israeli Embassy in Washington. Mossad - the Israeli intelligence service - is known to station husband-and-wife teams abroad, but it was not known whether the husband is a full-fledged officer, an agent or something else. When federal agents made a search of his work area they found a list of the FBI's most sensitive telephone numbers, including the Bureau's "black" lines used for wiretapping. Some of the listed numbers were lines that FBI counterintelligence used to keep track of the suspected Israeli spy operation. The hunted were tracking the hunters……."

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The tip-off about these operations - the pursuit of which sometimes has led the FBI on some wild-goose chases - appears to have come from the CIA, says an Insight source. A local phone manager had become suspicious in late 1996 or early 1997 about activities by a subcontractor working on phone-billing software and hardware designs for the CIA. The subcontractor was employed by an Israeli-based company and cleared for such work. But suspicious behavior raised red flags. After a fairly quick review, the CIA handed the problem to the FBI for follow-up….

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The activities of Israeli spy Jonathan Pollard were uncovered by accident, but there remains puzzlement to this day as to how he was able to ascertain which documents to search, how he did so on so many occasions without detection, or how he ever obtained the security clearances that opened the doors to such secrets. In all, it is suspected, Pollard turned over to his Israeli handlers about 500,000 documents, including photographs, names and locations of overseas agents……. The current hush-hush probe by the FBI, and what its agents believe to be a serious but amorphous security breach involving telephone and modem lines that are being monitored by Israeli agents, has even more serious ramifications. "It has been an eye opener," says one high-ranking U.S. government official, shaking his head in horror as to the potential level and scope of penetration……"

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….…….. U.S. officials believe that an Israeli penetration of that telephone utility in the Washington area was coordinated with a penetration of agents using another telephone support-services company to target select telephone lines. Suspected penetration includes lines and systems at the White House and NSC, where it is believed that about four specific phones were monitored - either directly or through remote sites that may involve numbers dialed from the complex……….. The FBI has deduced that it was this sophisticated computer-related equipment and software could provide real-time audio feeds. In fact, according to Insight's sources, the FBI believes that at least one secure T-1 line routed to Tel Aviv has been used in the suspected espionage…."

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The potential loss of U.S. secrets is incalculable. So is the possibility that senior U.S. officials could be blackmailed for indiscreet telephone talk. Many officials do not like to bother with using secure, encrypted phones and have classified discussions on open lines…….. Insight has learned that House and Senate investigators did ask questions about these matters and in late 1998 were told directly by the FBI and the CIA (among others) that there was no truth to the Lewinsky claim of foreign tapping of White House phones. Moreover, Congress was told there was no investigation of any kind involving any foreign embassy or foreign government espionage in such areas. But that was not true. In fact, the FBI and other U.S. agencies, including the Pentagon, had been working furiously and painstakingly for well over a year on just such a secret probe, and fears were rampant of the damage that could ensue if the American public found out that even the remotest possibility existed that the president's phone conversations could be monitored and the president subject to foreign blackmail. To the FBI agents involved, that chance seemed less and less remote……."

INSIGHT MAGAZINE 5/5/00 **EXCLUSIVE** J Michael Waller Paul Rodriguez "….The FBI has become increasingly frustrated by both the pace of its investigation and its failure to gain Justice Department cooperation to seek an indictment of at least one individual suspected of involvement in the alleged Israeli telephone intercepts. National security is being invoked to cover an espionage outrage. But, as a high law-enforcement source says, "To bring this to trial would require we reveal our methods of operation, and we can't do that at this point - the FBI has not made the case strong enough." Moreover, says a senior U.S. policy official with knowledge of the case: "This is a hugely political issue, not just a law-enforcement matter." ………."

Center for Security Policy 5/5/00 "…… Next week, a fresh spate of congressional investigations will be launched to examine the metastasizing cancer arising from the Clinton-Gore Administration's systematic failure to adhere to the most basic physical, personnel and information security practices. The latest shoes to drop involve 1) the reported penetration of White House and other sensitive facilities' communications systems by Israeli intelligence and 2) the apparent loss of additional State Department laptop computers -- including one assigned to a particularly controversial Clinton appointee, Morton Halperin, director of State's Policy Planning Staff. ……. With respect to the latter, Halperin claims there was no classified information on his laptop -- unlike another one removed last year from an ostensibly secured conference room along with the extremely sensitive state secrets in its hard drive. This contention requires close scrutiny, however, given that one of the reasons Halperin did not secure Senate confirmation to a senior Defense Department job was his long-standing antipathy towards the U.S. intelligence community, its classification practices and other activities. ……"

Fox News Channel Website 5/5/00 Carl Cameron "…..Fox News has learned that the FBI has briefed the President Clinton, CIA director George Tenet, FBI Director Louis Freeh, and Attorney General Janet Reno about what is described as a "penetration of the U.S. government telephone system." The breach involves the White House phone system - not the secure lines that the President uses, but the everyday phones installed by Bell Atlantic. Sources say the FBI has been investigating Bell Atlantic and its St. Louis billing company, AMDOC, since 1997. AMDOC's head is Israeli and has numerous ties to Israel. ... In 1997, the White House had a new state of the art phone system installed by Bell Atlantic. This system is not the "secure" militarily-installed system for classified conversations, but a "commercially secure phone." The classified phone lines presumably remain secure and are not involved in this. ……."

Fox News Channel Website 5/5/00 Carl Cameron "…..Investigators said that a senior-level employee of AMDOC had a separate T1 data phone line installed from his base outside of St. Louis directly to Israel. Sources say the owner of the T1 line had a "real time" capacity to intercept phone calls from both the White House and other government offices around Washington and sustained the ability for some time. ….."

World Net Daily 5/19/00 Paul Sperry "……A senior State Department official whose laptop computer has turned up missing was suspected by the State Department during the Cold War of being a communist agent, WorldNetDaily has learned. The foreign-affairs agency, besieged by recent reports of security breaches and Russian spying, has discovered three laptops to be missing. One was signed out to Morton H. Halperin, the assistant secretary of state for policy planning. Halperin, according to a well-respected former State official, was suspected of working for the communists in the '60s and '70s. …….."He was a person we knew to be pro-Soviet and not a person to be trusted," said the official, who worked in intelligence during the height of the Cold War. "Halperin has been known on embassy (briefing) cards as a Soviet or communist agent," added the official, who was an expert on the Soviet Union, in an exclusive interview with WorldNetDaily. ……"This is a very old story, and I don't think you'll find it has any legs," said the staffer, who insisted on going unnamed. The former State official, who also wished to remain anonymous, was "horrified" upon hearing the news of Halperin's missing laptop. Halperin's aide asserted that it "wasn't his laptop," but "was assigned to the policy planning staff of which he heads." …….."

Miami Herald 5/17/00 AP "……A jury was seated today, clearing the way for opening statements in the trial of a U.S. immigration official charged with passing a government secret to a friend who prosecutors say has ties to Cuba. Mariano Faget, 54, admits he made errors in judgment, but the veteran Miami Immigration and Naturalization Service official denies he ever spied for Cuba. Federal investigators charged Faget 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 faces up to 10 years in federal prison if convicted in the four-count indictment. Faget is a Cuban-born U.S. citizen who started working for the INS as a clerk in 1970 and rose to become acting district deputy director in Miami. ….."

NewsMax.com 5/18/00 "…… A total of 15 State Department laptop computers have vanished over the last year and a half, the Washington Post reported today, adding that the matter has now resulted in a security crackdown. The missing laptops, all identified as "unclassified" or not containing classified information, are part of the State Departments inventory of some 1,913 portable computers. And a security check of the department's 60 laptops that could contain secret information revealed that only one was missing, however. ...... According to the Post the disappearances have provoked tighter security restrictions, to be announced today by David G. Carpenter, the department's top security official. ...... In a memorandum obtained by the newspaper, Carpenter warns that Bureau of Diplomatic Security agents will check all unclassified laptops to make sure they contain no sensitive information. The memorandum also alerts employees that the bureau will conduct spot checks of laptops, and the data contained in them. …….. One State Department official told the Post that he "reported and repeatedly tried to draw attention to a missing unclassified laptop in 1996, but that diplomatic security looked into it only during the past month." ….."

Capital Hill Blue 5/16/00 "…..Purchased in 1996, the laptop computer was kept for the use of officers from other bureaus engaged in counterproliferation work, said J. Stapleton Roy, assistant secretary of State for intelligence and research. It was stored in an intelligence-and-research area because it contained highly classified information on the proliferation of weapons and technologies of mass destruction, and related delivery systems, he said. Personnel were prohibited from removing the computer from the secure area, where open storage was authorized under department regulations, Roy said. ……..Rep. Sam Gejdenson, D-Conn., questioned the logic of purchasing a notebook PC rather than a larger, harder-to-conceal desktop computer. "We weren't considering theft when we purchased the unit," Roy explained. ……. State discovered the loss on Jan. 31, when someone outside the bureau asked for it, he told the committee. The department didn't report the computer missing for nearly two weeks as it tried to track down the laptop, contacting all in-house personnel as well as officers outside the bureau who were authorized to use the computer, he said. Some 40 officers outside the country were contacted, Roy testified. ……. On Feb. 10, the department contacted State's Diplomatic Security unit and notified the CIA Center for Security about the missing computer and the information it contained. ……."

The Times of London 5/21/00 David Leppard, Paul Nuki, Gareth Walsh, Nick Fielding "…..ONE of Whitehall's top spymasters runs a secret committee that is co-ordinating a wide-ranging crackdown on journalists investigating intelligence scandals. Michael Pakenham, third son of Lord Longford, the controversial peer, is chairman of the committee, which is so clandestine that the Cabinet Office refuses to disclose its name. Pakenham's powerful committee is responsible for co-ordinating how Whitehall bosses deal with "unauthorised disclosures" by renegade intelligence service agents such as David Shayler and Richard Tomlinson. The Sunday Times has established that the committee's members are behind the recent crackdown on the press, which is causing growing concern among civil liberties leaders and newspaper editors. ……"

APBnews 5/24/00 "…..Responding to suggestions from a House panel, the FBI has boosted security at its headquarters here and at other locations. The steps were "based on recommendations received yesterday from the crime subcommittee of the House Judiciary Committee. ... No specific threat gives rise to this announcement," the bureau said today. Henceforth, at FBI headquarters on Pennsylvania Avenue, police and law enforcement officers from outside the FBI will have to surrender their weapons before entering unless they have been given permanent building passes. …"

Sunday Times (UK) 5/21/00 Uzi Mahnaimi "…. MORE than 20 years of Israeli spying operations in Washington culminated in the interception of e-mails from President Bill Clinton, intelligence sources claimed last week. …. The latest spying operation is said to have taken place in 1998 while Benjamin Netanyahu was Israel's prime minister. According to the sources, it entailed hacking into White House computer systems during intense speculation about the direction of the peace process.......... Sources in Israel say intelligence agents infiltrated Telrad, a company that had been subcontracted by Nortel, America's largest telecommunications conglomerate, to help develop a communications system for the White House. Company managers were said to have been unaware that virtually undetectable chips installed during manufacture made it possible for outside agents to tap into the flow of data from the White House. ……. Information being sent from the president to his senior staff in the National Security Council and outside government departments could be copied into a secret Israeli computer in Washington, the sources said. It was transferred to Tel Aviv two or three times a week. ……"

UPI 5/25/00 "……General Accounting Office investigators discovered security lapses at a Washington-area airport and all 19 federal agencies team members tried to enter…… The Washington Post reported Thursday that the GAO personnel, disguised as armed police and using identification badges obtained over the Internet were able to carry unexamined briefcases past security guards……. According to the Post, only at the CIA were the investigators unable to advance to the offices of the head of the agency.

AP 5/21/00 "…..A British tabloid has recovered a stolen military laptop believed to contain details of a fighter plane being developed jointly by the United States and Britain, authorities confirmed Sunday. The Mirror, which returned the computer to the Ministry of Defense, reportedly recovered the laptop in a sting operation after being contacted by an unidentified computer specialist who was given the computer and asked to delete ``fighter plane stuff'' from its memory. The computer expert saw that the information was sensitive and contacted the tabloid. ……."

InSightMag.com 5/21/00 Jamie Dettmer Timothy Maier "……Take a massive posting in late April on the site www.cyptome.org, which specializes in intelligence issues. Britain's spymasters could not believe their eyes when they spotted the most highly classified report ever to be leaked on the Internet. …… And they, with the assistance of their friends on this side of the Atlantic, have been doing everything they can since to get it off the Web and to dissuade British news organizations from revealing either the content of the report or publishing the Internet address where it can be read. …….The report - marked "Top Secret Delicate Source UK Eyes Only" - comes from the files of Britain's internal-security wing, MI5, and it details Libyan intelligence activity in Britain and MI5's surveillance - and bungled attempts to recruit - Libyan agent Khalifa Ahmad Bazelya. It clearly shows how the Libyan led the Brits "down the garden path" and suggests Bazelya may have had a hand in the 1995 assassination of Libyan dissident Ali Abuzeid, who had conspired the previous year with British intelligence in a plot to kill Libyan leader Col. Muammar Qaddafi. ……."

The Associated Press 5/20/00 John Solomon "……The government struck a plea bargain that resulted in no prison time for a nuclear scientist who confessed to passing secrets to China, rather than await an analysis that ultimately concluded he ``directly enhanced'' Beijing's weapons program, documents disclose. The documents, gathered by Senate investigators, detail weeks of miscommunication between prosecutors, defense officials and the FBI that led up to the December 1997 plea bargain for former U.S. nuclear labs scientist Peter H. Lee. ……. The miscommunication left the Justice Department official with final authority for the case unaware that his prosecutor would seek minimal prison time for Lee. As it turned out, the judge gave Lee no prison time even though he was informed Lee had been deceptive in his cooperation. ….."

Sunday Times of London 5/21/00 Uzi Mahnaimi "……MORE than 20 years of Israeli spying operations in Washington culminated in the interception of e-mails from President Bill Clinton, intelligence sources claimed last week. ….. The latest spying operation is said to have taken place in 1998 while Benjamin Netanyahu was Israel's prime minister. According to the sources, it entailed hacking into White House computer systems during intense speculation about the direction of the peace process. ……… Sources in Israel say intelligence agents infiltrated Telrad, a company that had been subcontracted by Nortel, America's largest telecommunications conglomerate, to help develop a communications system for the White House. ….. Company managers were said to have been unaware that virtually undetectable chips installed during manufacture made it possible for outside agents to tap into the flow of data from the White House. ….."

 

WorldNetDaily 5/31/00 Charles Smith "…..According to a December 1999 joint CIA/FBI report titled "Chinese Espionage Activities Against the United States", the Second Department is quite successful. "Military intelligence collection against the United States is primarily conducted by military attaches assigned to the Defense Attaché's Office in the Chinese Embassy in Washington and the Military Staff Committee at the United Nations in New York City," states the 1999 report written by the CIA and FBI. "For the most part, attaches openly collect information from Western publications as well as from their contacts in accordance with MID/PLA directives. Nonetheless, since 1987 the FBI and the U.S. Customs service have detected and interdicted at least two MID/PLA clandestine collection operations in the United States. ……. "The CIA and FBI also noted that the Second Department's greatest success in America is not through its uniformed agents and clandestine operatives. The Second has set up business in America. ….."During the past 20 years, China has established a notable intelligence capability in the United States through its commercial presence," states the joint CIA/FBI report. "China's commercial entities play a significant role in its pursuit of proprietary/trade secret U.S. technology. …..."

WorldNetDaily 5/31/00 Charles Smith "…..The fundamental principles of the new strategy are embodied in two People's Army terms for national defense: "Junzhuanmin" is the turning over of military resources to civilian use, and "junmin jieje" is the integration of the military and civilian. Both terms refer to the combination of the military and civilian resources such as airports, seaports, roads and communications. However, "Junzhuanmin" and "junmin jieje" also translate into a conversion that is reversible, with each resource having a dual function -- military and civilian. The twin track policy has resulted in increased budgets for the Chinese army, advanced technology for modern weapons and a strengthening of the Chinese military-industrial complex…….. According to a Commerce Department document on Chinese military defense industries, the People's Liberation Army's new strategy is an economic war against America. "(Chinese) Civilian resources should be transferable to military industries for weapons production," states the document, entitled "Swords Into Market Shares," which was forced from the Clinton administration by a Freedom of Information lawsuit. "This is not only to prepare for war, but also to use trading firms such as NORINCO (China North Industries Corporation) and China Great Wall Industry Corporation to acquire foreign technologies, such as electronics, for military as well as economic modernization……"

Etherzone.com/Washington Post 5/31/00 Sue Anne Pressley "…..Mariano Faget, 54, who came to the United States from Cuba as a teenager and later became a naturalized U.S. citizen, was an acting deputy director of the U.S. Immigration and Naturalization Service in Miami when he was arrested in February on charges that he revealed secrets to a lifelong friend and business partner with connections to Cuba. ……Faget was the first immigration official ever charged under federal espionage laws. Although he had a high-level security clearance and occasional access to sensitive information, officials said, he is not considered to have done significant harm to U.S. national security. But the case is viewed by some counterintelligence officials as evidence that Cuba has built an extensive intelligence network, particularly in the Miami area. ……"

Miami Herald 5/30/00 "…….U.S. immigration official Mariano Faget, accused of revealing secrets to a friend with ties to Cuba, was found guilty on espionage charges by a federal jury this afternoon. Faget also was convicted on charges of disregarding his oath of secrecy for personal gain. Jurors deliberated about three hours last Thursday, were off Friday and Monday, and resumed deliberations this morning. Faget, 54, a high-level Immigration and Naturalization Service veteran with an otherwise unblemished 34-year career, faces up to 10 years in federal prison. Faget admitted he lied to the FBI and that he disclosed classified information without permission - two things that formed the foundation for the government's case. ……"

AP 5/30/00 "…..A U.S. immigration official was found guilty of espionage Tuesday for revealing secrets to a friend with ties to Cuba. Mariano Faget, 54, a naturalized U.S. citizen who came from Cuba as a teen-ager, took the stand in his own defense last week to say that he had "made a mistake" when he passed classified information to his lifelong friend, a businessman. The federal court jury also convicted him of disregarding his oath of secrecy for personal gain. …….. Faget, 54, was an acting deputy director of the U.S. Immigration and Naturalization Service in Miami when he was caught in an FBI sting calling friend and business partner Pedro Font with the name of a soon-to-be Cuban defector. He had been warned the classified information was secret…….. "

THE WASHINGTON TIMES 5/26/00 Jerry Seper "…..Undercover agents from the General Accounting Office told a Senate subcommittee Thursday they could easily have carried weapons, explosives or listening devices unchallenged into several federal agencies they entered using bogus badges and phony credentials. Robert Hast, assistant controller general for the GAO's Office of Special Investigations, told senators the undercover agents were never confronted by security officials, and had no trouble penetrating 19 federal agencies and two airports - gaining entry to 18 of the 21 sites on the first attempt……. "At no time during the undercover visits were our agents' bogus credentials or badges challenged by anyone," said Mr. Hast, who said the federal agencies were targeted based on their involvement in national security, intelligence and criminal justice……..Rep. Bill McCollum, Florida Republican and chairman of the Senate Judiciary subcommittee on crime, which called for the investigation, said the results of the undercover operation show that many of the federal government's most sensitive sites "are completely vulnerable to terrorism on the cheap." "In a matter of 10 to 15 seconds, they were in," Mr. McCollum said. "I was shocked. With a massive expansion of federal anti-terrorist security measures in the wake of the Oklahoma City bombing, I would never have thought this could happen."……."

THE WASHINGTON TIMES 5/25/00 Jerry Seper "……Undercover agents from the General Accounting Office used counterfeit badges and phony credentials to penetrate security at two airports and 19 government offices - including the CIA, Justice Department, FBI, State Department and Pentagon. Agents from the GAO's Office of Special Investigations successfully entered the private suites of Defense Secretary William S. Cohen, Attorney General Janet Reno, Federal Aviation Administrator Jane Garvey, Health and Human Services Secretary Donna E. Shalala and NASA Administrator Dan Goldin. According to a GAO draft report, the agents used credentials made with widely available computer programs and badges purchased over the Internet to pose as plainclothes officers in an investigation sought by the House Judiciary subcommittee on crime……… Under that guise, the agents also were allowed close access to the private suites of 15 Cabinet officers or department heads, and took briefcases and bags unescorted into the bathrooms nearest those 15 offices....The agents entered the buildings after declaring they were armed. Briefcases they carried were never searched. At the Justice Department, they drove a rental van into the department's courtyard, where it was left while the agents went into the building unescorted -later entering Miss Reno's office……… ….."

 

AP VIA ETHERZONE NEWS WIRE 6/8/00 "….. The FBI will meet with experts from a security company Friday to discuss the firm's discovery that hackers have embedded a malicious program disguised as a movie clip on 2,000 commercial and home computers, positioning themselves to launch an attack designed to shut down Web sites. The problem, detected by a security firm that does work for the Justice Department, demonstrates the growing vulnerability that home computer users face as they begin to purchase permanent, high-speed connections to the Internet. ...... Without special software to protect them, Internet surfers using cable modem and digital subscriber lines are easy prey. ……."

BBC Online 6/4/00 "……. The MoD admits to a spate of missing laptops The government minister in charge of Britain's nuclear secrets has had his laptop stolen, the Ministry of Defence has confirmed. Armed forces minister John Spellar had his home broken into in Bromley, Kent. …. The intruder stole his laptop computer but left without touching two red boxes containing potentially sensitive defence information. The laptop, which was stolen on 25 March, is the latest in a series to be lost or stolen while in the care of senior Whitehall officials. ……"

drudge 6/10/00 "…… The CIA and the FBI have concluded that an Iranian defector in Turkey who claimed on CBS's 60 MINUTES be a former Iranian intelligence official and terrorist mastermind -- is an impostor who lacks basic knowledge of Iran's intelligence apparatus! "He has been lying about lots of stuff,'' a senior U.S. official tells Sunday's WASHINGTON POST, according to publishing sources. ….."

The Associated Press 6/14/00 "…..TAMPA, Fla. -- A retired high-ranking military officer was arrested Wednesday, accused of having spied for the Soviet Union, the prosecutor's office said. Steve Cole, a spokesman for the U.S. Attorney's Office, said he could not yet identify the man but said he was a retired military officer who lived in Florida. The office planned to release details of the case and the man's name at a news conference later in the day.. ….."

BBC News(UK) 6/14/00 Donna Bucella "……Colonel George Trofimoff is accused of conspiring to sell classified information to Moscow while he was a senior civilian employee of the US army in Germany. The colonel, whose parents are Russian, is said to have been recruited by the KGB in 1969. He was arrested in Florida, where he has been living in retirement. "He is the highest ranking United States military officer ever to be charged with espionage," Tampa Attorney Donna Bucella said during a news conference. …… Colonel Trofimoff worked at the Nuremberg Joint Interrogation Centre in Germany from 1969 to 1994, prosecutors said. They said Colonel Trofimoff had access to all classified information received or produced by the centre. He retired in 1995 after 35 years' service. …….Colonel Trofimoff also served in the Army Reserve, where he gained his rank. ……The indictment against him lists 32 occasions when he allegedly photographed classified documents and passed them to his KGB handlers. ….."

Yahoo News 6/14/00 "……A U.S. grand jury in Tampa indicted Army Col. George Trofimoff, of Melbourne, Florida, alleging he stole classified information while serving as the civilian head of a U.S. intelligence operation in Nuremberg, Germany, and sold it to the KGB, the Soviet secret police. Trofimoff, son of a Russian emigre recruited to the service of the KGB by a childhood friend, served in the Army reserve for most of his civilian employment and retired as a colonel in 1995 after a 35-year career. He recently worked bagging groceries at a Florida supermarket, a Department of Justice official said. …..``He is the highest-ranking United States military officer ever to be charged with espionage,'' Tampa U.S. Attorney Donna Bucella said during a news conference. ……. The indictment alleged Trofimoff, who had ``top secret'' security clearance, took military intelligence from the U.S. Army Element of the Joint Interrogation Center (JIC) in Nuremberg. ……The information included documents on U.S. intelligence objectives and Soviet and Warsaw Pact battle documents which detailed U.S. knowledge of Cold War adversaries' military capabilities. ….."

newsmax.com 6/16/00 USA Today "…..This week's news that two computer hard drives containing nuclear weapons secrets disappeared from the government's Los Alamos National Laboratory raises a host of questions. ...... Q: Are there other copies of the lost information? A: Yes. Los Alamos is one of several bases for NEST personnel; at least two other sites possess the same data. ...... Q: Is there any chance the hard drives could be in enemy hands? Can they be disabled? A: Energy and FBI officials say there is no evidence of espionage or theft, and it's more likely the drives were misplaced or accidentally destroyed. Officials say there is no mechanism to disable them without having them in hand. ......... Q: If the data got out, could they be used to build a weapon? A: Officials say that the data could be helpful, but they downplay the notion that the information could be used to ''reverse engineer'' a nuclear weapon, even if a would-be enemy had all the hard-to-get materials necessary to build one. They say the data would give a potential enemy useful insights on U.S. capabilities and procedures for disabling nuclear weapons -- information that could be used, for instance, to design a device that would be more difficult for NEST personnel to disarm. And one official familiar with the contents of the hard drives conceded that some of the information on the hard drives about homemade weapons might help someone intent on building one. ......

newsmax.com 6/16/00 USA Today "…..... They say 86 people have access to the vault where the drives were stored, and 26 could enter without an escort. Vaults at Los Alamos are protected by coded locks, palm-recognition devices and other security mechanisms. There are no cameras recording visitors to the vaults because transmissions can be intercepted. Moreover, there are no sign-out requirements for removing material. Lab officials say the NEST mission requires that personnel be able to use the vaults freely because data and equipment often need updating. Furthermore, team members must be able to grab what they need and bolt at a moment's notice. People with high-level security clearances needed to enter the vault are responsible for its contents...."

newsmax.com 6/16/00 USA Today "…..Q: Were rules or laws broken? A: Yes. Under Energy Department regulations, the disappearance of the drives should have been reported within eight hours. ….. Q: Will anyone be punished? …..Some lawmakers also have said that consideration should be given to ending the University of California's contract to run the lab, which also was the subject of a major security flap last year when one of its scientists was accused of mishandling classified data amid allegations of Chinese espionage……."

[See National Labs section for more on the 2 missing disks…]

 

New York Times 7/10/00 James Risen "…..Classified work at the federal government's Pacific Northwest National Laboratory has been suspended as a result of a security lapse, according to Energy Department and laboratory officials. Laboratory officials suspended all classified work at the installation in Richland, Wash., after an employee discovered a classified document had been left in an unclassified but locked office for about a day. Officials said classified work was stopped on July 3, after the classified document was discovered in an unclassified area on June 30. ……… While some classified work has resumed, most secret operations at the laboratory remain suspended, and some employees have been shifted to unclassified work while an investigation is conducted, the officials said. …….The security lapse at Pacific Northwest appears to have been minor, but officials responded aggressively because it came so soon after the publicity over lax security at Los Alamos National Laboratory in New Mexico.... The Pacific Northwest laboratory is one of nine national laboratories, but its scientists do not design nuclear weapons. Instead, the laboratory, which has about 3,500 employees, focuses on environmental science. Only about 13 percent of its research is considered classified. …….."

Medium Rare articles 7/3/00 Jim Rarey "…… We are being told by media pundits that the security lapses at the Los Alamos nuclear laboratory present the worst threat to our national security in decades. Could anything be worse? In a word, yes! 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? It may have something to do with type of research and development being conducted at the lab. ……"

Medium Rare articles 7/3/00 Jim Rarey "…… 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……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………What is known so far (by the public) may be just the tip of the iceberg. There is obviously a massive cover-up in progress. Whistleblowers can only be cowed by the three deaths and reportedly are being harassed into silence under the rubric of "national security." ……."

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. …….This writer has written two articles on the subject detailing the capabilities of EMP weapons and their development and use, not just by the United States, but by Russia. Copies of those articles ("Chinese Steal EMP Weapons Secrets-Huh?" of 3/21/99 and "EMP Weaponry-A Conspiracy of Silence?" of 10/14/99) may be obtained by directing an E-mail to msutton828@provide.net with the phrase "EMP articles please" in the title line. ……Since those articles, the United States has successfully tested a laser weapon which destroyed a live missile in mid-air. News reports say the weapon will be furnished to Israel for its defense against short-range missiles from its neighbors. ….."

Washington Times 6/24/00 Bill Gertz "……A Los Alamos National Laboratory scientist misplaced classified documents stored on magnetic disks, further highlighting security problems at the nuclear-weapons facility, The Washington Times has learned. …… ``This security incident is currently being reviewed,'' said Stu Nagurka, an Energy Department spokesman. Mr. Nagurka said the documents were reported missing and later recovered during an audit of classified material after the loss and recovery of two computer hard drives that contained nuclear-weapons secrets. ………. ``Classified information that should have been in one secure area at Los Alamos was found in a nearby secure safe,'' he told The Washington Times. ``The information had never left a secure area and had always been appropriately stored, just in a different location than originally thought.'' …….. The missing information was discovered in a single day, however. Mr. Nagurka provided no other details about the incident. …….. The breach was uncovered during an inventory of electronic media _ disks and tapes _ used to store classified information. The audit is part of an effort to review security at the laboratory and involves checking ``bar code'' information on the media. ……."

Jewish World Review 6/19/00 David Limbaugh "…… WHEN DISCUSSING the Clinton administration's record on national security we need to come up with a new word. "Outrage" just doesn't quite cover it anymore. ……. The inexplicable disappearance of hard drives at Los Alamos National Laboratory containing highly sensitive data about our nuclear weapons and those of France, China and Russia is the logical consequence of this administration's deliberate laxity toward our nuclear secrets. I'm quite serious. …..Through his statements, policies and appointments, Bill Clinton has made it clear that he has never discarded the peace-protesting mentality that characterized his college years. That mindset included a contemptuous disdain for those who viewed the Soviet Union and other communist states, as evil empires. It also demonized nuclear weapons (even in the hands of the United States) and viewed them as a threat, rather than an asset to world peace. ….."

Newsday 6/18/00 AP "…..The parent company of the top contractor at the Savannah River Site nuclear weapons complex says it might fire some workers over a security breach in which some of the complex's computers were sold as scarp (sic) overseas. Morrison Knudsen, owner of Westinghouse Savannah River Co., will take ''appropriate personnel actions,'' said John Roberts, director of administration for the company based in Boise, Idaho. ''We take this matter very seriously.'' ...... His announcement Friday came two days after confirmation that some surplus computers from the complex wound up in China. The Department of Energy, the agency's inspector general and Westinghouse all have investigated the year-old incident. ……"

Freeper MindBender26 salon.com | 6/19/00 "…… DOD officiials are denying it, but FBI agents are fuming. Seems they have developed solid case that TRW scientist Peter Lee, a Chinese American, disclosed highly classified details about a new technology Navy anti-submarine radar system during a visit to Bejing in 1997. TRW has deep ties to DNC. Lee gave PRC officials a complete, American style high-level briefing on the system and the PLA officials in attendance even recorded it on a home video camera! PLA Navy was/is very excited by getting info. …….. CIA sources in PRC sent tape copy to The Big Office Building on the South Side of the River. BOBOSSOR passed onto FBI, since the release was so blatant. FBI easilly made case, but now WH tells Navy to object to prosecution, on grounds that playing tape in open court would "endanger security" Intel hands scoff at this explanation, since tape was made and copied in PRC!!! They see this is another attempt by POTUS to downplay his links to PRC and PLA. ……"

 

New York Times 8/10/00 Steven Lee Myers "..... A highly classified intelligence report warns that deploying an American national missile defense could prompt China to expand its nuclear arsenal tenfold and lead Russia to place multiple warheads on ballistic missiles that now carry only one, according to officials who have reviewed it.

Although the report reaffirms what China and Russia have publicly said in opposition to the system, it offers a detailed analysis of how those two nations are likely to respond and suggests that the effects of an American decision to build a nuclear defense would ripple around the globe from Europe to South Asia, the officials said.

It warns that China would expand its relatively small arsenal of roughly 20 long-range nuclear missiles to a quantity large enough to overwhelm the limited defensive system that the Clinton administration is considering. One person who has seen the report said it estimated that China could deploy up to 200 warheads by 2015, prompting India and Pakistan to respond with their own buildups. .......Although Russia's economy is unlikely to support a large buildup of its missile forces, officials said the report found that it could again deploy shorter-range missiles along its borders and resume adding multiple warheads to its ballistic missiles. That is something Russia agreed to stop as part of the second strategic arms control treaty, or Start 2, which it ratified this year. ......The report, "Foreign Responses to U.S. National Missile Defense Deployment," underscores warnings by opponents here and abroad that the administration's proposal to build a limited defensive system could lead to a new arms race with Russia and, to a lesser extent, in Asia. ......"

CNN 8/9/00 "……The U.S. State Department is offering a $25,000 reward for a laptop computer that has been missing for months from one of the Department's most secure areas, a spokesman said Wednesday. "We think, at this point in the investigation, it was time to put out a reward of $25,000, if anybody can identify the machine and bring it to us," spokesman Richard Boucher said. "It's a Dell laptop with a five-digit serial number ending in the letter "Q," located on a sticker in the back near the ports." As CNN has reported, the computer was not password-protected and the raw data was not encrypted. That means anyone using the computer could have immediate access to its code-word contents, which the State Department has said are highly classified. ……"

Telegraph/U.K. 8/7/00 Simon Davis "……COMPUTER hackers hired by the Chinese government have stolen highly classified information from America's nuclear weapons research laboratory in Los Alamos, New Mexico. The electronic break-in early last year has been kept secret until now, US intelligence sources told the Washington Times. The Chinese obtained the equivalent of a stack of documents 3ft high," said one official. He added that the discovery proved the Chinese government was using advanced computer spying techniques that Beijing's military have been fine-tuning for several years. …….America used techniques developed by its National Security Agency to trace the hackers to a research institute in Beijing, which is believed to have been used in the past for spying. The information that was stolen was believed to be extremely valuable to foreign government weapons programmes, according to counter-intelligence officials. ……"

Washington Post 7/23/00 Vernon Loeb and Doug Struck "…… A secret CIA overview of the U.S. intelligence community prepared for visiting Japanese intelligence officials has been posted on an Internet site frequented by activists opposed to government secrecy, prompting security concerns among intelligence officials and their overseers on Capitol Hill. The CIA briefing, containing some sensitive information about budget trends and so-called "hard" intelligence target countries, appeared a week ago on Cryptome, an Internet site (http://jya.com/crypto.htm) maintained by John Young. Young is a New York City architect who started posting government documents on encryption and intelligence issues six years ago. He said he posted the secret CIA document, together with lists naming hundreds of agents from Japan's Public Security Investigation Agency, after receiving the documents from a source in Japan……."

THE DRUDGE REPORT 7/22/00 "….. A secret CIA report of the U.S. intelligence community has been posted on the Internet! The CIA briefing, prepared for visiting Japanese intelligence officials, has on CRYPTOME, an Internet site [ http://jya.com/crypto.htm ], which is run by activists opposed to government secrecy. CRYPTOME's webmaster, John Young, tells Sunday's WASHINGTON POST that he posted the secret CIA document, together with lists naming hundreds of agents from Japan's Public Security Investigation Agency, after receiving the documents from a source in Japan……."

Associated Press Writer 7/22/00 "…….A private Web site has published a secret CIA overview of the U.S. intelligence community prepared for Japanese intelligence officials who visited the agency's headquarters in 1998. The briefing containing information on the CIA's budgets and personnel trends was posted by John Young, 64, a New York City architect whose Web site has displayed government documents on intelligence and encryption issues since 1996. Last month, Young published an unedited version of a secret history of the 1953 CIA-mastered coup in Iran that was originally published on The New York Times Web site with portions blacked out. Young said he received the 1998 CIA briefing by e-mail from an anonymous source in Japan. ……."

 

The Centre for Counterintelligence and Security Studies 6/14/00 "……GEORGE TROFIMOFF, a retired United States Army Colonel, was arrested today in Tampa on charges that he engaged in a 25-year-long conspiracy to sell classified military intelligence information to the Soviet Union, in violation of 18 U.S.C. 794(c). According to an Indictment that was returned by a federal grand jury sitting in Tampa and unsealed today. George Trofimoff obtained the classified information while serving as a civilian Chief of the United States Army Element of the Joint Interrogation Center (JIC) in Nuernberg, Germany, from 1969 through 1994. During most of that time, Trofimoff also served in the United States Army Reserve, retiring as Colonel. He retired from his Army civilian employment after 35 years, in 1995. He is the highest-ranking United States military officer ever charged with espionage. ……."

New York Times.com 9/3/00 William Broad "…..The abrupt turnaround in the public image of Dr. Wen Ho Lee from villain to victim, from atomic spy endangering the nation's security to computer nerd unfairly put behind bars for downloading harmless minutia, is raising new questions about what constitutes a nuclear secret these days. More than half a century after the making of the atom bomb, millions of former secrets have been either declassified or posted willy-nilly on Internet sites, even as the nuclear club has grown to at least eight members, with many more wanabees in the wings. ……. Combined with President Clinton's announcement on Friday that he would leave the decision on whether to pursue a national missile defense system to his successor -- a shield that China, Russia and the NATO allies have warned may set off another nuclear arms race -- Lee's case raises a troubling question: what's really secret anymore? ……. The surprising answer is, a lot. Some restricted data is deemed so sensitive that Washington is engaged in a quiet effort to raise classifications from secret to top secret for 65 nuclear topics, making whole libraries of sequestered data less likely to slip into foreign hands. ……"

Associated Press Writer 8/22/00Karin Laub "……A U.S. Army reserve officer with access to intelligence information returned home Tuesday, two weeks after he alarmed the American military by going AWOL. Lt. Col. Jeremiah Mattysse turned up Monday at a youth hostel in the desert town of Mitzpe Ramon. Mattysse has denied allegations by an Israeli woman who claimed to be his girlfriend that he disclosed sensitive documents. "I'm not a spy," Mattysse told reporters after leaving a police station in central Israel late Monday. "There's been many things said about me which aren't true. I didn't give any classified information to anyone." Israeli police said that Mattysse, who earlier this month requested to emigrate to Israel, was not at any time in detention and left the country voluntarily. ……."

Bloomberg 8/25/00 James Rowley "…..A U.S. prosecutor has recommended that former CIA Director John M. Deutch be charged with illegally storing government secrets on home computers and lying about the security breach, people familiar with the case said. ……. Paul E. Coffey, a career government prosecutor summoned from retirement to investigate the case for the Justice Department, recommended the criminal prosecution of Deutch, the people said. It is up to Attorney General Janet Reno to decide whether to act on the recommendation. She declined to prosecute last year after reviewing the CIA's internal investigation before it was made public. ……… Amid mounting congressional pressure, the Justice Department reopened its criminal investigation of Deutch. Senate Intelligence Committee Chairman Richard Shelby said after Deutch appeared before the panel that the conduct by the former head of the spy agency ``continues to baffle members of the committee, and his explanations were not wholly satisfactory.'' ……."

Fox News 8/24/00 AP "……A 31-year-old diplomatic courier, carrying classified information in yellow pouches, died in the Gulf Air crash that killed all 143 passengers and crew members, the State Department said Thursday. The courier, Seth J. Foti, joined the service 14 months ago and was based in Manama, Bahrain, for a little more than a year, spokesman Richard Boucher said. "His dedication to the mission of the courier service was unmatched, and he was clearly an asset to the Department of State and the U.S. government,'' Boucher said. "…. Three U.S. military helicopters and 10 small ships are assisting in salvage efforts, which include attempts to recover the pouches. ……Six U.S. diplomatic couriers have died in crashes, the last in 1963. No other Americans were aboard the flight, Boucher said. ……."

Washington Times 10/4/00 Bill Gertz Jerry Seper "…..Energy Secretary Bill Richardson disclosed the identity of Los Alamos scientist Wen Ho Lee by revealing he was the key spy suspect to a newspaper reporter, a former Energy Department intelligence official told lawmakers yesterday. …….. "One of the reporters involved in the publication of the stories in question told me directly that Secretary Richardson had provided to him the name of Wen Ho Lee," Notra Trulock, the former official, told a Senate Judiciary subcommittee……. The New York Times' disclosure blew the cover on a secret three-year FBI investigation into how China had obtained secrets on every deployed nuclear warhead in the U.S. arsenal, according to an FBI official close to the case……….. Some FBI officials believe Lee's identity was disclosed deliberately to undermine the probe and head off political fallout. A similar case occurred in 1989 involving State Department official Felix Bloch, who was suspected of spying but never was charged……."

Washington Times 10/4/00 Bill Gertz Jerry Seper "….. Under questioning by subcommittee Chairman Sen. Arlen Specter, Mr. Trulock identified the reporter to whom Mr. Richardson revealed Lee's name as New York Times investigative reporter James Risen……..Mr. Trulock was the first to investigate Chinese nuclear spying at weapons laboratories. The FBI recently raided his town house and confiscated a computer, charging that Mr. Trulock improperly disclosed intelligence information. …….. The New York Times reported March 6, 1999, in a front-page story that a "Los Alamos computer scientist who is Chinese-American" was the prime suspect in a case of Chinese nuclear espionage. The story was written by Mr. Risen and Jeff Gerth, who later won a Pulitzer Prize for his reporting on Chinese spying………. Two days after the Times story, Mr. Richardson ordered Los Alamos to fire Lee for security violations………National security officials said the case was the first U.S. spy case that did not involve espionage charges, only the lesser charges of mishandling classified data……."

Washington Times 10/4/00 Bill Gertz Jerry Seper "…..Mr. Trulock was asked by Mr. Specter what knowledge he had of Mr. Richardson's firing of Lee after he testified that the disclosure "came out of the office of the secretary of the Department of Energy." After consulting with his lawyer, the former Energy Department intelligence and counterintelligence chief said he was told by Mr. Risen about Mr. Richardson's action. He said it was not a coincidence the Energy Department only "became energized" about fixing its security problems after the FBI "provided information to the Cox committee on Dr. Lee and other espionage cases." "We're going to pursue that," said Mr. Specter, who is investigating the Lee case. "Respecting confidentiality of sources, that's something which is of the utmost importance."………..

Washington Times 10/4/00 Bill Gertz Jerry Seper "…..Earlier, an Energy Department scientist told the subcommittee that nuclear weapons data illegally downloaded by Lee contained secret design information on a number of nuclear explosives, including some weapons currently in the U.S. arsenal. Stephen Younger testified that if the tapes found their way to unauthorized persons, they could provide design codes for U.S. nuclear weapons, enable enemies of the United States to advance their own weapons systems and provide the ability to identify and exploit weaknesses in the U.S. nuclear defense system……….. "Nuclear weapons are the most destructive weapons ever created by humankind," he said. "They are the only devices that can threaten the conventional military superiority of the United States. In the wrong hands, the information downloaded by Dr. Lee could enable a proliferant nation to design relatively crude but nevertheless effective nuclear weapons without nuclear testing. "Those weapons would certainly not be as sophisticated as the weapons contained in the U.S. arsenal, but they would be credible enough to influence other nations, including our own," he said. "A nation that already had nuclear weapons could use the codes to help maintain their weapons or to improve them."……"

Washington Times 10/4/00 Bill Gertz Jerry Seper "…..Last week, FBI Director Louis J. Freeh told the Senate Judiciary and select intelligence committees that the still-missing tapes were the impetus behind the plea agreement. "The government made this agreement for one overarching reason: to find out what happened to the missing tapes," said Mr. Freeh, adding that Lee created "his own secret, portable, personal trove of this nation's nuclear weapons secrets."…….. He said each of the 59 counts outlined in the December 1999 indictment "could be proven today," but the government opted for the agreement to avoid "revealing nuclear secrets" in open court.......... Mr. Younger testified that based on his knowledge of foreign nuclear weapons programs, no other country has the technology base necessary to perform measurements made in U.S. nuclear tests, measurements he said were used in the calibration and validation of the computer codes downloaded by Lee. Asked by Mr. Specter whether there was clear and convincing evidence that the data downloaded by Lee amounted to the theft of the "crown jewels," Mr. Younger responded: "If the design of the most sophisticated nuclear weapons on the planet are not the crown jewels of nuclear security, I don't know what is."........."

International Herald Tribune 9/22/00 Tom Buerkle "……A small missile smashed into the eighth floor of the headquarters of MI6, Britain's foreign intelligence service, and the London Metropolitan Police warned Thursday of a ''genuine threat of terrorism'' in London. The attack, which occurred late Wednesday, was believed to be the work of a dissident wing of the Irish Republican Army. It caused no injuries and only minimal damage to the headquarters ..."

The South China Morning Post 11/2/00 "….. China had at least 37 spies concentrating on ferreting out US nuclear arms secrets in the mid-1990s and the effort has been successful, according to a secret US intelligence report. The report is published in a new book, The China Threat, by Washington Times reporter Bill Gertz. It also details espionage against the United States by Russia, Japan, France, Israel, India and other countries. …… The book says that in the early 1990s the FBI came across evidence China had spies inside the US Government, including one burrowed in the intelligence community. ….. Intercepted communication between the Chinese Embassy in Washington and Beijing suggested the agent, code-named Ma, was supplying classified defence information, the book says. But the FBI never found the mole. ……..The book includes excerpts from a US intelligence report that describes how various countries targeted US nuclear secrets. ….."

News Max 11/1/00 Carl Limbacher "….. Recent news reports say that Russian computer hackers have stolen the code for Microsoft's software, and other Russian operatives have obtained America's stealth warfare technology. NewsMax.com has learned that Russian's cyber offensive has become an alarming situation. For the past year, U.S. intelligence has noted a terrific increase in computer hackers entering U.S. computer systems traced back to Russia. Their target? America's power plants, telecommunications systems, bridges, dams, sewage treatment plants, water stations and other key installations. …. "

Seattle Post-Intelligencer 10/30/00 "...... SEATTLE - A Russian mathematician who was given access to an American supercomputer loaded with stealth warplane design software is under investigation for espionage. ....... U.S. agents suspect that Aleksey Yeremin, who logged on to the supercomputer from Moscow, took advantage of Lockheed Martin and military security lapses to steal stealth technology secrets. ........ The 31/2-year investigation stretches from the heart of the old Soviet empire to Lockheed's secretive Skunk Works plant in Southern California to a quiet suburb north of Seattle. Yeremin, vice president of a software company based in Bothell, Wash., that did work for Lockheed, was e-mailed part of Lockheed's modeling program for designing stealth planes. And, sources say, it would have been easy for him to steal the rest of it. The potential loss is staggering: America's global monopoly on radar invisibility. ....."

10/30/00 Gene Johnson "......A hacker had high-level access to Microsoft Corp.'s computer system for 12 days - not up to five weeks, as the company had first reported - and was monitored the entire time. ..... While the company says it believes no major corporate secrets were stolen, some security experts believe the 12-day period was plenty of time for a hacker to do damage that may not have been detected yet. ....Microsoft spokesman Rick Miller said Sunday that beginning Oct. 14 a hacker gained access to high-level secrets and that at some point over the next 12 days viewed blueprints, or source code, for Microsoft software that is being developed. ....... The company was alerted to the break-in by the creation of new accounts giving users access to parts of Microsoft's computer network, Miller said. "We start seeing these new accounts being created, but that could be an anomaly of the system," Miller said. "After a day or two, we realized it was someone hacking into the system." It was not until Oct. 26, however, that the company notified federal law enforcement, which is investigating the matter. Microsoft said it initially planned to handle the break-in on its own. ....."

Insight 10/21/00 Notra Trulock ".....The question we are left with, though, is: "Did Lee's actions compromise our nuclear secrets?" The answer to this questions seems to be an unequivocal yes. In the good old days, such as in the infamous John Walker or Aldrich Ames spy cases, there would be a full-scale damage assessment that would identify the magnitude of the possible loss or any vulnerability that the compromise of these secrets might open up in our nuclear arsenal. But that was then, and this is now. .........Don't look to the Energy or Defense departments for such an assessment; "not interested" seems to be their attitude. As for the intelligence community, its 1997 report to the National Security Council was pathetically lame and remains a first-class example of the politicization of intelligence under the Clinton administration. Finally, in 1999 under prodding from a Republican-controlled Congress, CIA Director George Tenet and the U.S. intelligence community shook off their lethargy and produced a "damage assessment" of China's acquisition of U.S. nuclear-weapons information in general. Tenet's conclusion:

"China obtained by espionage classified U.S. nuclear-weapons information that probably accelerated its program to develop future nuclear weapons. This collection program allowed China to focus successfully down critical paths and avoid less-promising approaches to nuclear weapon designs." (Emphasis added.) ........"

Insight 10/21/00 Notra Trulock ".....Tenet's assessment noted the existence of "significant deficiencies" in China's weapons program, but warned that "the Chinese almost certainly are using aggressive collection efforts to address deficiencies as well as to obtain manufacturing and production capabilities from both nuclear and nonnuclear sources." So we have a set of intelligence-community findings that the Chinese have obtained classified U.S. nuclear-weapons information on "a variety of U.S. weapons-design concepts," including the W-88 warhead for the Navy's Trident II submarine-launched ballistic missile. We have these findings validated by a group of senior experts, including one nuclear-weapons scientist at least as prominent as Agnew, et al.: John Foster of the Lawrence Livermore National Laboratory. Although largely ignored by the national media, Tenet's assessment still stands as the official U.S. intelligence-community position on Chinese nuclear espionage. Please note that the assessment is limited in scope, but it is better than nothing. ......."

Insight 10/21/00 Notra Trulock ".....Tenet also concluded that the information acquired by the Chinese could assist them to develop a multiple, independently targetable reentry vehicle for a future mobile missile. So both Tenet and the wise men recognized the fact of Chinese nuclear espionage: that such espionage could help them field mobile missiles, but significant deficiencies remained and the Chinese were likely to come back to the United States for more. ......."

Insight 10/21/00 Notra Trulock ".....There now is good reason to doubt the retired scientists' judgments about the public availability of all this information. In one stunning development, Richter walked back his assertion that 99 percent of all this information already is in the public domain. In an interview, Richter changed his story to say that he intended the 99 percent figure to mean only the software and physics underlying the computer codes but certainly not the warhead dimensions or the "physical properties of bomb materials." ......Unfortunately, it does seem that much of this material really is classified; for example, actual designs of modern nuclear weapons in the current U.S. inventory were on the Lee tapes. ..... Okay, but he destroyed the tapes, right? So, since no foreign bad guys got their hands on them, no harm, no foul. ........Well, maybe not. In fact, Lee seems to have been putting this stuff on an unclassified computer network at Los Alamos. Congressional investigators have determined that Lee was moving nuclear-weapons secrets across a firewall to the unclassified portion of the same network as early as 1993 and again in 1994. ....... Cleverly worded, but at about the same time the New York Times was reporting the findings of an internal government review of numerous foreign intelligence efforts against the national labs. The Times noted that there were more than "300 foreign attacks on the Energy Department's unclassified systems" in just one six-month period. According to the Times' account these attacks included instances when outsiders successfully gained "complete access and total control to create, view, modify or execute any and all information stored on the system." The Washington Times' Bill Gertz reported on Aug. 3 one such penetration originated in Beijing. ......Did the intelligence community ever do a damage assessment" of what was on the tapes and how it might benefit a foreign nuclear power? If such an assessment exists, why didn't the prosecution use it in the Lee trial? This is just one of many unanswered questions in this strange case. No harm, no foul? Don't bet on it just yet. ......"

UPI 10/20/00 Pamela Hess "……The USS Cole had been refueling for about an hour on Oct. 12 when a bomb exploded nearby, according to the Navy, a small change in the timeline that significantly changes the Navy's account of the presumed terrorist attack. ……. The change will also open the Navy to even more criticism and second-guessing: The question the Navy must now answer is how the small boat believed responsible for the bombing was able to get so close to the warship without being challenged or intercepted. ……. Initial reports indicated the bombing was carried out by port employees or people posing as port employees, who were helping the Cole tie up to a floating fueling station in the port of Aden in Yemen. …. The Navy's initial account of the bombing was based on a single witness, an Army major attached to the U.S. embassy in Yemen. ……."

FoxNews 10/20/00 "…..The explosives used by terrorists in last week's deadly attack on the USS Cole were a "common" type available from numerous sources, U.S. officials said Friday. …… The initial conclusion came from the Federal Bureau of Investigation's Washington forensics lab, which examined evidence containing explosives residue and was due to receive another shipment of evidence over the weekend. …..Yemeni officials, however, told Fox News on Wednesday the explosives were sophisticated and could have only come from three places: the U.S. military, Israel and one undisclosed Arab country. ….U.S. officials said the Yemeni authorities have arrested several suspects in the past two days and are closely looking at Ayman al-Zawahari, who has ties to the Egyptian Islamic Jihad group and is a close associate of Osama bin Laden, whom the United States accuses of masterminding the 1998 bombings of its embassies in Kenya and Tanzania that killed 224 people. …….The officials said they knew of a televised statement by al-Zawahari and bin Laden in which they call on their followers to attack American forces in Saudi Arabia, Yemen and Somalia, as well as another threat to attack a U.S. warship, but added that those threats carried no specific timetable……… Yemeni security officials said Thursday the apartment yielded documents they believe originated in Hadhramaut, a region along the eastern border with Oman that is home to lawless tribes that have kidnapped foreigners for ransom. ….. A vehicle believed to have been used by the attackers also contained documents traced to Hadhramaut, the Yemeni officials said. They said investigators were sent to the region Thursday. ……. Abdel-Bari Atwan, editor of the London-based newspaper al-Quds al-Arabi, said he was told by bin Laden's followers one month ago that they would keep up attacks on their targets, including Americans. Atwan, who interviewed bin Laden in 1997 and spoke with his associates in Afghanistan by telephone one month ago, said the Saudi exile had wanted to use Yemen to stage attacks on Americans in Saudi Arabia and began building connections with tribesmen in Yemen two years ago. He said bin Laden, who some diplomats have said was a regular visitor to Yemen until 1998 when he was expelled, recently married a Yemeni girl. ……Bin Laden's family originally came to Saudi Arabia from the Hadhramaut province. …….In another report, a Taliban official in Afghanistan said Arab militants who met with bin Laden in late September left the country just four days before the attack on the Cole. The official, who is close to the security apparatus of the Taliban religious militia that controls nearly all of Afghanistan, asked not to be identified for his own safety. ….."