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New Problem with US intelligence

Edward Campbell

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This, from the Financial Times, is yet another blow to the US Intelligence Community's credibility with allies:

http://www.ft.com/intl/cms/s/0/b1063cf0-0369-11e4-9195-00144feab7de.html?siteedition=intl#axzz36WjfST4p
financialTimes_logo.png

Germany arrests US double agent, reports claim

By Jeevan Vasagar in Berlin

July 4, 2014

German authorities have arrested a suspected double agent working for the US who is thought to have spied on the Bundestag’s inquiry into claims of US surveillance, according to local media reports.

The incident risks becoming the biggest problem to hit US-German relations since it emerged in October last year that the US National Security Agency monitored the mobile phone of German chancellor Angela Merkel.

In a statement, Germany’s federal attorney-general said a 31-year-old German national had been arrested on Wednesday.

The statement said the man, who is being held in custody, is suspected of working for a foreign intelligence agency.

The claims that the arrested BND employee was a US spy were first reported in the Süddeutsche Zeitung and by the broadcasters NDR and WDR. Spiegel Online  reported that the man worked in the mailroom of the BND, Germany’s foreign intelligence agency.

Bild reported that the man had stolen documents over a two-year period, and sold them.

A German politician who had been briefed on the arrest said on Friday that it had not been definitively established that the US was the foreign power responsible. He warned against assuming that the case is a “one-sided story”.

The German parliamentary committee investigating the NSA said on Thursday it would adjourn to discuss the arrest.

The inquiry, which is looking at the scope of US spying on Germans’ communications, including the tapping of Ms Merkel’s phone, heard testimony from former NSA officials William Binney and Thomas Drake this week.

Members of the inquiry committee are conscious of the security risks involved and are using secure phones that encrypt calls to shield themselves from eavesdropping.

The chairman of the committee Patrick Sensburg said he was unable to comment on confidential parliamentary discussions.

He told the Financial Times: “Of course we think about protecting our communications. We leave our mobiles outside the room where we speak, and each of us has a safe in our offices where we keep notes and documents locked up.”

Ms Merkel’s spokesman said on Friday that she had been informed of the arrest, but declined to comment on reports that the man was an employee of the BND. The spokesman said the matter was “very serious”.

The chancellor’s spokesman declined to say whether the matter was discussed in a telephone call between Ms Merkel and President Barack Obama on Thursday.

Christian Flisek, a Social Democrat member of the Bundestag committee, said: “If this suspicion proves correct, it undermines the [transatlantic] trust that we have worked for months to restore, and is an attack on a German constitutional body.”

Martina Renner, a member of the opposition party Die Linke who also sits on the Bundestag committee, said she expected there would be “political consequences”.

Ms Renner said: “The federal government has to place more importance on protecting the fundamental rights of citizens, than the interests of German and US intelligence agencies.”

Last week, Germany announced that it had terminated a contract with Verizon over concerns about the security of its systems in the first sign of serious commercial repercussions in Europe from the NSA revelations.

On the whole, relations between the US and German governments have calmed down in recent months, after the row over the tapping of Ms Merkel’s phone last year.

Both sides have been keen to downplay the level of discord. In an interview with German state broadcaster ZDF in January, Mr Obama emphasised his “relationship of friendship and trust” with the German leader. The two governments have sought to work together over the Ukraine crisis.

The relationship has been complicated by the threat of German criminal proceedings against the NSA.

Germany’s federal prosecutor Harald Range said last month there was sufficient factual evidence that “unknown members of US intelligence services” had spied on the German chancellor’s mobile to launch an investigation.

At the same time, the prosecutor said there were no plans to look into the wider gathering of telecommunications data by “British and US intelligence agencies”.

BND was not immediately available for comment on the arrest. As a rule, Germany’s security agency does not comment on ongoing criminal inquiries.


This is a blunder because, just last year, in the wake of the Snowden fiasco, President Obama apologized to Chancellor Merkel for intercepting her calls and promised it was over; maybe he's kept that promise, but even if he did he should have told his officials to wrap up operations against the Germans, for a while at least ... maybe he did that, too, and they just ignored him. In any event the US looks both two-faced and a bit amateurish.

No one should be surprised that allies spy on one another, but they ought to do it with a bit more discretion.
 
I agree, one would have to be very naive to think that Allies do not spy on each other.  What I find more troubling about the US Intelligence networks, is their being infiltrated by members supportive of the Muslim Brotherhood, and perhaps other terrorist organizations. 

Last year we saw this, and it is again in the news as of a couple days ago:

Muslim Brotherhood operatives infiltrate Obama Administration


History of the Muslim Brotherhood Penetration of the U.S. Government

Breaking: Benghazi “Smoking Gun” Email Distributed to Muslim Brotherhood Agent
 
More, again reproduced under the Fair Dealing provisions of the Copyright Act from the Financial Times, on how Chancellor Merkel is using this incident to beat up on President Obama, this time with Xi Jinping as a (willing) prop:

http://www.ft.com/intl/cms/s/0/47649330-05b9-11e4-8b94-00144feab7de.html?siteedition=intl#axzz36m5Z5Ws9
financialTimes_logo.png

Angela Merkel indignant at claims US recruited German as double agent

By Tom Mitchell in Beijing and Jeevan Vasagar in Berlin

Last updated: July 7, 2014

Angela Merkel reacted angrily on Monday to reports that the US had recruited a German as a double agent, with her justice minister threatening to launch criminal proceedings over the allegations.

The German chancellor expressed her indignation as she stood next to to China’s premier in Beijing, highlighting how the two countries’ relationship has been strengthened by their shared outrage at US espionage activities.

“If the allegations are true it would be a clear contradiction as to what I consider to be trusting co-operation between agencies and partners,” the German chancellor said during a news conference with Li Keqiang.

Heiko Maas, the German justice minister, issued a strongly worded statement, saying: “The Americans have to observe the law just like everyone else. This case must now be cleared up quickly and comprehensively with all legal means.”

Mr Maas said that the US could only restore “the trust that has been lost” by co-operating with Germany’s inquiries into the spy affair. “The intelligence agencies have to observe the rules. If they don’t, they must face criminal proceedings.”

German authorities last week arrested a 31-year-old man employed in the Germany’s foreign intelligence service who later admitted to working for the US. Berlin’s relationship with Washington was already under strain from revelations last year by Edward Snowden, the former US intelligence contractor, that the National Security Administration had bugged Ms Merkel’s phone. Berlin has already launched a criminal investigation into the incident.

The White House declined to confirm on Monday whether the individual arrested on spying charges had been working for the US.

Asked to respond to Mr Merkel’s comments that if the reports about the US connection were true, it would represent a breach of “trust”, White House spokesman Josh Earnest said “that’s obviously a big “if.”’

“We highly value the close working relationship we have with the Germans on a wide range of issues, but particularly on security and intelligence matters,” he said. “It’s built on a lot of shared trust. It’s built on friendship, and it’s built on shared values.”

Analysts played down the likelihood of German authorities mounting an effective prosecution against US intelligence agencies.

Constanze Stelzenmüller, senior transatlantic fellow with the German Marshall Fund, a think-tank, said the justice minister’s statement was a “completely impractical suggestion” but an indication of Berlin’s strong feelings.

Ms Stelzenmüller described the affair as “amateurish”, a reference to a German media report that the suspected double agent had made contact with US intelligence in the simplest fashion imaginable – by emailing the Berlin embassy.

“This is a low-grade clerk who was a walk-in,” she said. “Because it’s all so amateurish, the excitement that it generates shows how raw everybody’s feeling. The underlying issues, particularly of institutional trust, remain unresolved.”

At a press briefing on Monday, Christiane Wirtz, a spokeswoman for Ms Merkel, said that talks between the US and Europe to create a transatlantic trade pact “were not in question or in doubt”.

But the espionage scandals may make it harder to persuade an already sceptical public of the benefits of transatlantic co-operation, particularly over the Transatlantic Trade and Investment Partnership.

The trade talks have become a focus of popular anti-American sentiment, with opponents rallying around the emblem of the Chlorhühnchen, the chlorine-washed chicken they fear will be imported from the US.

Carsten Nickel, a Berlin-based analyst with the consultancy Teneo, said: “It’s going to be much tougher to sell [the Transatlantic Trade and Investment Partnership] to the public. It wasn’t popular in the first place. It’s more complicated to make concessions and work towards consensus.”

The Chinese government has sought to take full advantage of the transatlantic tensions, giving German companies a range of prizes during the chancellor’s three-day visit to the world’s second-largest economy. Germany is China’s biggest trading partner in Europe.

On Monday, the Chinese government granted German investors an Rmb80bn ($13bn) investment quota in the country’s stock markets. Volkswagen , the top-selling automaker in the world’s largest car market, said it would invest €2bn in two new plants in the eastern cities of Tianjin and Qingdao, and Lufthansa  signed a code-share agreement with Air China .

“The message from China is we are happy to engage with you guys but not the US,” said one European businessman.

Ms Merkel’s visit is the second of three major Sino-German summits this year. President Xi Jinping of China visited Berlin in March, while Mr Li will travel to Germany later this year.

Last month Liu Xiaoming, China’s ambassador to London, spoke bluntly of how far Germany had risen in Beijing’s estimation relative to its European peers. “Before I came here, we used to say when we talked about Europe: ‘Britain, France and Germany’,” Mr Liu told reporters ahead of Mr Li’s visit to the UK. “People now start talking about ‘Germany, France and Britain’.”

Mr Li also used Ms Merkel’s visit to snub Tokyo on the anniversary of Japan’s invasion of China in 1937. In his joint appearance with Ms Merkel, the premier said: “We must always remember history to correctly face up to the past.” Chinese officials routinely contrast German contrition for its Nazi past with what it sees as Japan’s failings to confront its own wartime atrocities, a theme also emphasised by Mr Xi on his European tour earlier this year.

“We don’t have any historical grudges with Germany,” said Gu Junli, a German expert at the Chinese Academy of Social Sciences. “They have dealt really well with issues related to the second world war.”
However, Beijing and Berlin do not see eye-to-eye on all fronts. Beijing has done nothing to discourage Russia’s annexation of Crimea and its support of separatist forces in eastern Ukraine.

Meanwhile, Ms Merkel made clear that she opposed industrial spying wherever it originated when asked about Chinese cyber-espionage against German businesses.

Additional reporting by Wan Li and Geoff Dyer


The 'big deal' behind Germany's outrage is, of course, the ongoing EU/USA free trade negotiations.

----------

Mods: I think I started this on the wrong page  :-[ ; maybe it belongs on the International Defence and Security page.
 
E.R. Campbell said:
Mods: I think I started this on the wrong page  :-[ ; maybe it belongs on the International Defence and Security page.

..and moved.
Bruce
 
That's why if you spy for an ally you go one better and become a triple agent. At least all the paranoia turns into some pay packets.
 
More on this story, reproduced under the Fair Dealing provisions of the Copyright Act from Slate:

http://www.slate.com/articles/news_and_politics/war_stories/2014/07/nsa_german_american_relations_angela_merkel_is_angry_about_u_s_spying_we.html
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Angela Merkel Is Very Angry
In expelling the CIA station chief in Berlin, she’s sending a serious message to Obama.

By Fred Kaplan

JULY 11 2014

German Chancellor Angela Merkel is shocked, shocked, that there’s spying going on in her country.

Her reaction may be purely theatrical, but the crisis it’s sown is serious. After discovering that an official in her intelligence service had been selling documents to the Americans (this in the wake of Edward Snowden’s revelations about National Security Agency intercepts of her cellphone conversations), Merkel expelled the CIA’s station chief in Berlin—an extraordinary action, rarely taken even by enemies and almost never by friends.

Merkel, a shrewd politician with East German roots, is surely aware of the hypocrisy going on, especially since she first expressed her shock while hosting Chinese President Xi Jinping, whose cyberspying in all realms, against all countries, matches and in some cases exceeds the NSA’s. (Reciprocating Xi’s visit, Merkel is now in China on a trade expedition.)

As James Kirchick, a Berlin-based journalist, writes in the Daily Beast, “Ever since its postwar rebirth as the divided city at the geographic and intellectual heart of the Cold War, Berlin has been a nest of spies.” The nest still thrives. If you were looking for a single spot to spy on Russians, Muslim jihadists, Iranians (including Western businesses doing illicit business with Iran), and carriers of intel on just about every threat worth watching on the planet, Berlin is your place—and the choice locales include the parliament and ministries. This is well known.

Apparently, in this latest case, the German intel official wasn’t recruited by Americans; rather, he approached them and offered caches of confidential documents for a fee. The American spies paid him a bit, for a while; when he turned useless, they threw him away. He then offered his services to the Russians—at which point German counterintelligence officers, who were routinely spying on Russian officials in their country (the shock! the horror!), saw what he was doing and arrested him. (It was then that he revealed his American connection.)

Is it shocking that we were paying a greedy fool to spy for us? No, most people who betray their country for money aren’t very bright. Is it contemptible that we took the offer to begin with? Well, this is what spies in a foreign country do—they spy on the foreign country. And it’s hard to turn away an asset who shows up at your doorway.

Still, German-American relations are in a downward spiral, and it’s easy to trace the chronology: the revelation about Merkel’s cellphone, the slew of news stories about NSA intrusions worldwide, all set against a deep cultural revulsion toward government surveillance, stemming from dread memories of living under the Gestapo and Stasi.

Even some hardcore, high-ranking ex-intelligence officials that I’ve talked with the past year wonder whether the intelligence gained from these practices is worth the political alienation—not just from a country’s population but also, after a while, from its intelligence services. These intel veterans say it might be time to reassess the standards and criteria for spying on allies.

There’s a fascinating bit deep down in today’s New York Times story about the growing U.S.-German rift. After the first Snowden revelations last year, German officials asked the Obama White House for a “no spy” agreement similar to the deal that the United States has long had with Britain, Canada, Australia, and New Zealand. The Times reports, paraphrasing American officials involved in the negotiations, “that German officials blanched when they heard what kind of responsibilities they would have for intelligence collection and cyber-operations around the world if they ever joined their elite club.”

In other words (and the Times story makes this point clearer than most accounts of the “five-eyes” club), the price for joining—and thus avoiding the eyes and ears of one another’s spy agencies—is to help spy on the rest of the world and to share the data collected, when asked. It’s unclear from the story which part of the arrangement made the Germans blanch—spying on the rest of the world or sharing the fruits with others. In any case, they had no interest. In fact, the Times reports that, after the ill-fated discussions, German politicians, including Merkel, “began talking about creating a ‘Germany only’ segment of the Internet, to keep German emails and web searches from going across American-owned wires and networks.”

If Merkel and her Cabinet are really pursuing this project, they will soon find it’s a pipe dream. The glory and the nightmare of the “World Wide Web” is that it is worldwide; it’s ultimately all one network—which is why a declaratory exclusion or exemption from the network’s pluckings is impractical, regardless of ethical or political factors.

Some in the intelligence world think that Merkel is grandstanding for the local crowd; she knows, they say, that expelling a station chief is, in a way, self-destructive. Hosting an American spymaster is a double-edged sword: Yes, he can engage in skullduggery, but he can also share much useful intelligence—pried from sources far and wide—about common interests and enemies.

What’s clear is that Merkel wanted to send a message to the CIA, NSA, and President Obama that they’ve gone too far, ignored her pleas for too long, and waved away her country’s politics too slightingly. Expelling the station chief sends an alarm-siren signal precisely because it inflicts damage on her as well. She’s telling our top officials that she’s willing to take the pain if that’s what it takes to get the message across. She’s saying, in the most diplomatically brutal way she can muster, that she’s serious. They should listen and figure out a way to solve the problem.


Of course, no one knows if there was a real "five eyes" type discussion and no one knows why Germany would balk at the bill, but the Germans are, undoubtedly, skilled at the international intelligence gathering business and they might, very well, not want to share.

What is clear is that Chancellor Merkel is miffed.
 
Personally I think it all boils down to the 'cellphone' thing,...............she's not so much pissed that they were monitoring it, but that they succeeded in monitoring it.
Everything after that is just trying to save some face....
 
I'm amazed that anyone at all ever says anything over a cell phone. It is an unencrypted radio, much like a World War II walkie talkie ...

1992-microtac-ultra-lite.jpg


... did no one learn anything from Prince Charles' comments about wanting to be a tampon? That was in the early 1990s (I was still serving) ... there was a lesson: don't use unencrypted circuits ... period.

(And don't forget that your landline circuit is, fairly often, carried on radio links and I can use a simple induction tap to listen to your landline from outside of your home. And I can build one with parts from Radio Shack.)


 
“The Americans have to observe the law just like everyone else.

This may be what the Minister thinks. I don't believe it is a universally held opinion in the US. "American Exceptionalism" and all that.  While many Americans seem to believe that they should be able to extend the enforcement of their laws into other countries (example: recent insistence on Canadian banks identifying US account holders), I don't think there is very much enthusiasm for the reverse.

All that aside, one thing I learned in Afghanistan (much to my naive surprise...) was that spying on allies was a growth industry. Looks like it still is.
 
Well, of course they were accidents.............. :-X

http://www.ctvnews.ca/world/german-intelligence-accidentally-eavesdropped-on-u-s-officials-report-1.1962530

Frank Jordans, The Associated Press

BERLIN -- Germany's foreign intelligence agency eavesdropped on calls made by U.S. Secretary of State John Kerry and his predecessor Hillary Clinton, German magazine Der Spiegel reported Saturday.

The respected news weekly reported that the agency, known by its German acronym BND, tapped a satellite phone conversation Kerry made in 2013 as part of its surveillance of telecommunications in the Middle East. The agency also recorded a conversation between Clinton and former U.N. Secretary-General Kofi Annan a year earlier, Der Spiegel claimed.

The magazine didn't give a source for its information, but said the calls were collected accidentally, that the three officials weren't directly targeted, and the recordings were ordered destroyed immediately. In Clinton's case, the call reportedly took place on the same "frequency" as a terror suspect, according to Der Spiegel.

The tapping of Clinton's call was reported Friday by German public broadcaster ARD and Munich daily Sueddeutsche Zeitung.
If true, the revelations would be embarrassing for the German government, which has spent months complaining to Washington about alleged American spy activity in Germany. Last year German media reports based on documents leaked by former NSA contractor Edward Snowden prompted a sharp rebuke from Chancellor Angela Merkel, who was allegedly among the U.S. intelligence agency's targets.

A spokesman for the U.S. embassy in Berlin and the State Department in Washington declined to comment on the latest reports.
In its report Saturday, Der Spiegel also cited a confidential 2009 BND document listing fellow NATO member Turkey as a target for German intelligence gathering.

The Germany intelligence agency didn't immediately respond to a request for comment Saturday.
 
Something about people in glass houses comes to mind. ;D
 
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