Australia Spied On Japanese Companies To Help Its Industries Negotiate Trade Deals
By Glyn Moody | Techdirt | November 12, 2013
As more information comes to light about the global snooping being conducted by the NSA and GCHQ, it is becoming clearer that much of it had little to do with combating terrorism, as a recent EFF article makes plain. But most damaging to the idea that massive surveillance was justified, because it was to protect people from extreme threats, is the revelation that commercial espionage was also being conducted. So far, the chief example of that is in Brazil, but The Sydney Morning Herald (SMH) now has information about large-scale industrial spying on Japanese companies carried out by Australian secret services:
BHP [BHP Billton — the world’s largest mining company] was among the companies helped by Australian spy agencies as they negotiated trade deals with Japan, a former Australian Secret Intelligence Service officer says.
A former diplomat has also confirmed Australian intelligence agencies have long targeted Japanese companies. Writing in The Japan Times, Professor Gregory Clark said Australian companies were beneficiaries of intelligence operations.
“In Australia, favoured firms getting spy material on Japanese contract policies and other business negotiations used to joke how [it had] ‘fallen off the back of a truck’,” Professor Clark wrote.
The article has more details, but doesn’t reveal how the materials were obtained. However, since Australia is part of the “Five Eyes” inner circle of snooping countries that also includes the US, UK, Canada and New Zealand, it seems likely that information of interest from those partners also found its way to Australian companies. SMH quotes Clark as saying:
Business information is a main target for [intelligence] agencies
It will be interesting to see if later releases from Snowden’s hoard of documents show any evidence of this Australian use of NSA materials for industrial espionage.Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+
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Senate committee approves funding for NSA, witch-hunt on leakers
RT | November 6, 2013
Congress has taken the first step towards expanding the abilities of the United States intelligence community by advancing a draft bill that will ensure the government’s spy budget stays intact into next year.
A Senate commitee approved the 2014 Intelligence Authorization Act during a closed door session on Tuesday, a bill that if signed into law will allow the US National Security Agency and other departments to keep receiving funding amid an international scandal that has caused calls for reform and even abolishment of the NSA both in the US and abroad in recent months.
Notwithstanding the backlash brought on by an array of secret NSA documents disclosed to the media by contractor-turned-leaked Edward Snowden since June, the Senate Intelligence Committee passed the draft bill by a 13-2 vote. Next, the full chamber will weigh in on the matter before it is reconciled with a sister act by way of the House of Representatives and sent to President Barack Obama to be signed into law.
If approved with all of its current provisions in place, the law will let the government continue to fund programs operated for purposes of counterterrorism and nuclear weapon proliferation prevention, authorizing initiatives within more than a dozen federal departments, including the NSA and others that deal in covert, intelligence-gathering operations.
In a press release issued Tuesday by the committee, however, its members also acknowledged that the bill expands certain intelligence community operations, including in particular the very programs enacted to prevent the unauthorized disclosure of classified information.
The bill, the committee wrote, “includes important provisions to enhance the conduct, accountability and oversight of the intelligence activities of the United States,” such as one intended “to protect against insider threats by adding necessary funds to deploy information technology detection systems across the intelligence community.”
The bill would also empower the Director of National Intelligence to “improve the government’s process to investigate . . . individuals with security clearances to access classified information,” while at same time “Instituting new statutory protections that protect the ability of legitimate whistleblowers to bring concerns directly to the attention of lawmakers, inspectors general and intelligence community leaders.”
Since the identity of the NSA leaker was revealed to be 30-year-old Edward Snowden, opponents of his actions have suggested that alternative, legal routes to questions the intelligence community’s tactics could have been taken, such as appealing to an inspector general. History, however, suggests that recent whistleblowers before him had a nearly impossible time doing as much, including Thomas Drake, a former senior NSA executive who was charged under the Espionage Act after he attempted to draw attention to waste, fraud and abuse within his agency years earlier. Speaking at an anti-NSA rally in Washington last month, Drake told a crowd of a couple thousand, “Any domestic surveillance legislation must include whistleblower protection for the credibility and enforcement of any reform effort, otherwise secrecy enforced by repression will turn into a faux reform passed into simply an honor system” for the NSA.
In a statement released on Tuesday, Committee Vice Chairman Saxby Chambliss (R-Georgia said, “This year’s intelligence authorization bill achieves both objectives by providing clear guidance and appropriate resources to the intelligence community, while enhancing the committee’s oversight of vital intelligence activities.”
If signed into law, the act will allow for funding to continue with regards to a number of intelligence-gathering operations conducted not just by the likes of the NSA, but also the Central Intelligence Agency, the Office of the Director of National Intelligence and the Departments of Defense, State, Treasury, Energy and Justice, among others.
Rousseff slams US failure to apologise over spying
BRICS POST | November 7, 2013
Brazilian President Dilma Rousseff said Wednesday that Washington’s refusal to tender an apology for the spying led to her cancelling her crucial state visit to the United States.
“I was going to travel. We said there was only one way to solve the problem, and it was an apology for what happened and a promise that it would not happen again,” she said in a local radio interview.
The trip was initially scheduled to begin on October 23.
The lack of apology from Washington created an impasse, she said, adding that she did not want to run the risk of having a new spying scandal break during her visit, which would be an embarrassment for both sides.
Rousseff also reiterated her charges against the US, saying the NSA surveillance program is economic espionage borne out of commercial and strategic interests.
She said reports of the NSA intercepting communication of state-oil giant Petrobras have belied US claims of the PRISM program being directed to thwart terrorism.
In Wednesday’s interview, Rousseff also responded to a recent story in the Brazilian daily Folha de Sao Paulo, accusing Brazil’s intelligence agency of spying on diplomats from Russia, Iran and Iraq in 2003 and 2004.
She said the agency’s operations did not involve privacy violations as no phone calls or emails were tapped.
Rousseff had attacked the United States in her opening speech at the United Nations General Assembly (UNGA) in September.
“Brazil, Mr President, knows how to protect itself. We reject, fight and do not harbour terrorist groups,” she said.
“As many other Latin Americans, I fought against authoritarianism and censorship and I cannot but defend, in an uncompromising fashion, the right to privacy of individuals and the sovereignty of my country,” she added.
Earlier on Tuesday Brazil made public a draft bill that will allow the government to prevent internet companies like Google and Facebook from storing data about Brazilian citizens outside the country.
Simultaneous revelations regarding the UK embassy housing a secret listening post in Berlin made Germany summon the British Ambassador to respond to the allegations.
With inputs from Agencies
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As Rest Of The World Considers Cutting Back Aggressive Surveillance, New Zealand Legalizes Massive Spying
By Mike Masnick | Techdirt | November 6, 2013
The ongoing release of various leaks from Ed Snowden have drawn lots of attention and criticism of the activities of various parties in the intelligence community — especially those who partner closely with the NSA, the so-called “Five Eyes” countries: US, UK, Canada, Australia and New Zealand. And while there appears to be real momentum in the US behind limiting this surveillance, apparently New Zealand has decided to go in the other direction, and has passed a very broad new snooping law that will force telcos to basically hand over everything to various intelligence agencies.
The technical Telecommunications Interception Capability and Security Bill will compel telecommunication firms to assist intelligence agencies in intercepting and decrypting phone calls, texts and emails.
Critics say the bill is authoritarian, limits internet freedom and impinges on privacy and civil rights. The Government says it is necessary to replace a decade-old law to keep pace with technology.
We had mentioned this bill back when it was proposed earlier this year (before all the Snowden stuff went down). Given just how much outrage there is around the world about this kind of activity, it’s fairly incredible that the New Zealand government just pushed ahead with it, as if there wasn’t a giant public discussion going on. Oh, and the new legislation also lets New Zealand’s GCSB spy on New Zealanders as well. Until now, its surveillance had been technically limited to foreigners, though they did spy on New Zealanders many times. Rather than push back on the GCSB for this illegal spying, it appears that the New Zealand Parliament just decided to legalize the practice. Shameful stuff.
Ex-DHS Director Michael Chertoff: The Public Spying On Famous People With Their Smartphones Is A Bigger Issue Than NSA Spying
By Mike Masnick | Techdirt | November 1, 2013
Former director of Homeland Security (and current profiteer off of any “security” scare) Michael Chertoff has penned quite an incredible op-ed for the Washington Post, in which he argues that the real threat to privacy today is not the NSA spying on everyone, but rather all you people out there in the public with your smartphones, taking photos and videos, and going to Twitter to post things you overheard more important people say. Seriously. It starts out by claiming this is a “less-debated threat”:
So it is striking that two recent news stories illustrate a less-debated threat to privacy that we as a society are inflicting on ourselves. Last week, a passenger on an Acela train decided to tweet in real time his summary of an overheard phone conversation by Gen. Michael Hayden, a former director of the National Security Agency (NSA) and the CIA (and my current business partner). The same day, a photo was published of Maryland Attorney General Douglas Gansler at a summer party where he was surrounded by underage youths who apparently were drinking.
But he then goes on to argue that this kind of thing is more troubling than the NSA revelations, which Chertoff suggests is no big deal:
Of course, the delicious irony is obvious: In one case, the former NSA chief becomes a victim of eavesdropping. In the other, a politician critical of teen drinking fails to intervene when he is surrounded by it. But both stories carry a more troubling implication. The ubiquitousness of recording devices — coupled with the ability everyone has to broadcast indiscriminately through Twitter, YouTube and other online platforms — means that virtually every act or utterance outside one’s own home (or, in Gansler’s case, inside a private home) is subject to being massively publicized. And because these outlets bypass any editorial review, there is no assurance that what is disseminated has context or news value.
It would appear that Chertoff seems to believe that there should be no expectation of privacy for the things you actually do in private — generating metadata about who you call, where you go, what websites you visit, etc. But, stuff that you actually do in public should never be “broadcast” because it might embarrass famous people.
And, yes, it’s the famous people being embarrassed that seems to most concern Chertoff:
If a well-known person has an argument with a spouse or child at a restaurant, should it be broadcast? If a business personality expresses a political opinion at a private party, should that opinion (or a distortion of it) be passed on to the rest of the world? If a politician buys a book or a magazine at an airport, should a passerby inform everyone?
See? Think of those poor well-known people, having people telling others about what they do. What a shame! Incredibly, he argues that it’s this exposing of the public actions of famous people that creates real chilling effects — and not the NSA’s spying, which he calls “exaggerated.”
Are we creating an informant society, in which every overheard conversation, cellphone photograph or other record of personal behavior is transmitted not to police but to the world at large? Do we want to chill behavior and speech with the fear that an unpopular comment or embarrassing slip will call forth vituperative criticism and perhaps even adversely affect careers or reputations? Do we need to constantly monitor what we say or do in restaurants, at sporting events, on public sidewalks or even private parties?
I don’t know what clueless PR flack thought this was a good strategy, but the clear connotation is hard to miss: Look, we the powerful people get to spy on everyone, but the second you turn the tables and spy on us and the things we do in public, what a horrible shame! Something must be done!
Britain’s GCHQ shepherding mass surveillance operations throughout Europe
RT | November 2, 2013
British intelligence agency GCHQ has helped counterpart entities in France, Germany, Spain, and Sweden develop methods of mass surveillance of internet and phone traffic in the last five years, a new report reveals.
Documents supplied by former National Security Agency contractor Edward Snowden to the Guardian show the UK Government Communications Headquarters’ (GCHQ) enormous influence throughout Europe. The documents detail how the agency developed and promoted spying processes, built relationships with telecommunication companies, and evaded national laws that constrain the surveillance powers of intelligence agencies.
In the wake of outrage expressed over the past week across Europe regarding newly exposed NSA surveillance of European countries – including intercepted communications and the monitoring of phones belonging to officials such as German Chancellor Angela Merkel – documents released Friday by the Guardian show major European countries’ culpability in mass surveillance efforts shepherded by the GCHQ.
The GCHQ is part of the ‘Five Eyes’ intelligence-sharing partnership between Australia, Britain, Canada, New Zealand, and the United States.
US intelligence officials said the monitoring that received so much indignation from powers like Germany and France was carried out by those countries’ own intelligence agencies and later shared with the US.
In June, the Guardian revealed the GCHQ’s Tempora program, in which the agency tapped into transatlantic fiber-optic cables to execute bulk surveillance. Germany’s justice minister, Sabine Leutheusser-Schnarrenberger, said at the time that the program sounded “like a Hollywood nightmare” and warned that free societies and actions hidden under “a veil of secrecy” are not compatible.
A nation-by-nation scorecard
In a 2008 survey of European partners, the GCHQ marveled at Germany’s capabilities to produce Tempora-like surveillance. The British service said the Federal Intelligence Service (BND) had “huge technological potential and good access to the heart of the internet – they are already seeing some bearers running at 40Gbps and 100Gbps.” The term ‘bearers’ refers to the fiber-optic cables. Gigabits per second (Gbps) measures the speed at which data runs through them.
The documents also show the British were advising German counterparts on how to change or evade laws that restricted advanced surveillance efforts. “We have been assisting the BND (along with SIS [Secret Intelligence Service] and Security Service) in making the case for reform or reinterpretation of the very restrictive interception legislation in Germany,” the survey says.
The report also lauds the GCHQ’s French partner, the General Directorate for External Security (DGSE), especially for its cozy relationship with an unnamed telecommunications company.
“DGSE are a highly motivated, technically competent partner, who have shown great willingness to engage on IP [internet protocol] issues, and to work with GCHQ on a ‘cooperate and share’ basis.”
The GCHQ expressed desire to benefit from the DGSE’s relationship with the company.
“We have made contact with the DGSE’s main industry partner, who has some innovative approaches to some internet challenges, raising the potential for GCHQ to make use of this company in the protocol development arena.”
The GCHQ’s work with its French counterpart led to improved capabilities to carry out bulk surveillance, despite growing commercial emphasis on encryption.
“Very friendly crypt meeting with DGSE in July,” British officials said. French intelligence officials were “clearly very keen to provide presentations on their work which included cipher detection in high-speed bearers. [GCHQ’s] challenge is to ensure that we have enough UK capability to support a longer term crypt relationship.”
New opportunities in future partnerships
GCHQ ties to Spain’s intelligence service, the National Intelligence Centre (CNI), were bolstered by Spain’s connections to an unnamed British telecom company, giving them “fresh opportunities and uncovering some surprising results.
“GCHQ has not yet engaged with CNI formally on IP exploitation, but the CNI have been making great strides through their relationship with a UK commercial partner. GCHQ and the commercial partner have been able to coordinate their approach. The commercial partner has provided the CNI some equipment whilst keeping us informed, enabling us to invite the CNI across for IP-focused discussions this autumn,” the survey said. It reported that the GCHQ “have found a very capable counterpart in CNI, particularly in the field of Covert Internet Ops.”
When Sweden passed a 2008 law allowing its National Defence Radio Establishment (FRA) to execute Tempora-like surveillance via fiber-optic cables, the GCHQ said in the report that “FRA have obtained a…probe to use as a test-bed and we expect them to make rapid progress in IP exploitation following the law change.” The GCHQ went on to express delight in future partnerships with FRA after the law passed.
The survey found strong ties between the GCHQ and Dutch external and internal intelligence services MIVD and AIVD, respectively.
“Both agencies are small, by UK standards, but are technically competent and highly motivated,” British officials said.
The GCHQ also helped AIVD in handling legal constraints to spying.
“The Dutch have some legislative issues that they need to work through before their legal environment would allow them to operate in the way that GCHQ does. We are providing legal advice on how we have tackled some of these issues to Dutch lawyers.”
Contrary to the other nations’ positive marks, the GCHQ country-by-country scorecard shows Italy’s intelligence agencies to be riddled with internal strife.
“GCHQ has had some CT [counter-terrorism] and internet-focused discussions with both the foreign intelligence agency (AISE) and the security service (AISI), but has found the Italian intelligence community to be fractured and unable/unwilling to cooperate with one another,” the report said.
A follow-up six months later noted the GCHQ still saw legal constraints in Italy as hampering AISI’s ability to cooperate.
This latest disclosure calls into question how involved the countries were in the overall surveillance of global citizens and world leaders led by the NSA and GCHQ.
The NSA Killed the Radio Star and American High Tech
By Richard Silverstein · Tikun Olam · November 2, 2013
While I don’t pretend to be a technical expert, it seems clear to me that one of the major pieces of collateral damage regarding the NSA spying scandal is the savaging that the American technology industry has taken. Though they initially denied it, it became apparent that companies like Twitter, Facebook, Google, Microsoft, Yahoo and others essentially rolled over and played dead in the face of Justice Department and NSA directives that they essentially unlock their data for inspection. Later it became clear that the government didn’t really need these data dumps, it could invade the company servers and sift through data at will.
Now these same companies are telling us that they’ll regain our trust by encrypting their data so that it can’t be hacked by NSA snoops. Such encryption is not going to be an effective tool if the NSA retains the same privileges it’s had to subpoena any data at any time for any person it wishes. In such cases, the only thing standing in the way of wholesale exposure of virtually every secret is a toothless FISA court which never questions a subpoena or prevents any spying.
The only benefit to encryption is that it will make it harder for the NSA to collect the reams of data which it sifts through in order to decide which individuals’ records it wants to subpoena. But given the creativity and ingenuity of NSA spooks, you can be sure they’ll discover a way to circumvent even this obstacle.
There is a certain attraction for the average NSA hacker to et everything they can; to open all possible doors; to pry into every possibly nook and cranny. That’s what spooks do. You can’t blame them for that. But you can blame the executive branch and legislators who were supposed to exercise oversight and, with a few exceptions like Marc Udall and Ron Wyden, abdicated their constitutional responsibility. 9/11 made them all go soft in the head.
Now even Rep. James Sensenbrenner, one of the chief architects of that foul piece of legislation called the USA Patriot Act, seems to have second thoughts. He’s gone so far as to call the actions of the NSA “criminal.” But is it too late? Once the NSA let the horse out of the barn, how will the U.S. technology industry get it back in?
These companies, the backbone of the U.S. economy, have shown themselves to be at the beck and call of the government. The trust we customers placed in them to protect our security has been savaged. Does anyone believe anything Mark Zuckerberg, Steve Ballmer, Larry Page or Sergey Brin say on this subject? Frankly, I think they can’t regain that trust no matter what they do.
The NSA has torn a hole in the high tech industry big enough to drive a super computer or Mack truck through. Countries like Brazil and others are already developing competing systems that will not be subject to the intrusive scrutiny of the NSA. Will any American want to maintain telecommunications accounts with U.S. companies?
If we lose the edge we’ve had in such technological development over the past 60 years, we will lose a huge sector of U.S. commercial innovation. We will hurt our economy, lose jobs, and slow the pace of development in our own country. In a strange and ironic way, NSA spying may ultimately hurt the U.S. and our national security.
An equally damaged victim of NSA spying has been our formerly warm relations with allies like Berlin, France, German, Mexico and Brazil. One must ask: was the benefit of whatever was learned by hacking the phones of their leaders worth the years of damage and mistrust that will ensue from this mess? Further, one has to marvel at the hubris of U.S. spymasters who believed that their massive House of Spies would never be exposed. As a result of Edward Snowden’s revelations the House of Spies has become a House of Cards.
In addition to all the nations with whom we’ve had tense of even hostile nations over the last decade or so, now we have to add allies who have lost trust in us.
I am delighted to learn that attitudes in the international community toward Snowden are gradually changing. With every new insult to the national pride of these countries with further NSA spying charges, more people find Snowden’s work admirable. German legislators met with him over the past few days to determine whether he can travel to German to testify before the Bundestag about the hacking of Prime Minister Merkel’s cell phone. If they find a way to bring him to Germany, I fear the cat will be out of the bag. As long as the U.S. could confine him to countries like China or Russia, with whom we have tense or hostile relations, Obama could dismiss Snowden as a crank. But once he begins spilling his guts before national legislatures of U.S. allies, he becomes a technological Robin Hood.
Brazil, Germany submit anti-spy resolution to UN
Press TV – November 1, 2013
An anti-spying draft resolution written by Germany and Brazil has been submitted to the United Nations amid the US surveillance scandal.
The draft resolution put forward on Friday would reaffirm “the right to privacy and not to be subjected to arbitrary or unlawful interference with privacy, family, home or correspondence.”
The right is already protected in the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights.
Furthermore, the draft resolution would also reaffirm the “same rights that people have offline must also be protected online, in particular the right to privacy, including in the context of the surveillance of communications.”
The draft was to be processed by the UN secretariat before being handed over to the UN General Assembly’s human rights panel for discussions.
This comes as German Chancellor Angela Merkel and Brazilian President Dilma Rousseff have both condemned the widespread spying by the US National Security Agency (NSA).
Merkel has demanded the United States enter a “no-spying” agreement with Germany and France by the end of 2013 amid recent revelations that the NSA spied on the two countries.
The Chancellor has also stressed that alleged espionage against Berlin and Paris, which are considered among closest allies of the US, should be stopped.
On October 26, a report published by German weekly Der Spiegel revealed that Merkel’s mobile phone had been listed by the NSA Special Collection Service (SCS) since 2002, and that her mobile phone number was still listed in June 2013.
Last month, Rousseff spoke at the United Nations General Assembly, calling for international regulations on data privacy and limiting espionage programs targeting the Internet.
Rousseff’s appeal came after reports were published in September by Brazil’s Globo television network, which revealed that the NSA spied on the president’s emails, phone calls, and text messages.
Snowden, a former CIA employee, leaked two top secret US government spying programs under which the NSA and the Federal Bureau of Investigation (FBI) are eavesdropping on millions of American and European phone records and the Internet data from major Internet companies such as Facebook, Yahoo, Google, Apple, and Microsoft.
The NSA scandal took even broader dimensions when Snowden revealed information about its espionage activities targeting friendly countries.
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The blame game: NSA chief points finger at US diplomats in spy scandal
RT | November 1, 2013
In an unexpected twist in the NSA scandal, spy chief Keith Alexander has blamed US diplomats for ordering surveillance on EU politicians. Meanwhile, State Secretary John Kerry has admitted espionage “reached too far,” alleging it was on “automatic pilot.”
Indicating a rift between the White House and the NSA, Director of the spy organization, Keith Alexander, has accused “policy makers” and “diplomats” for dictating the targets for surveillance. In a heated exchange, former ambassador to Romania, James Carew Rosapepe, challenged Alexander to justify spying on US allies, reported the Guardian.
“We all joke that everyone is spying on everyone,” he said. “But that is not a national security justification,” said Rosapepe.
Alexander replied sharply to the question, alleging ambassadors had a hand in ordering spy activities.
“That is a great question, in fact as an ambassador you have part of the answer. Because we the intelligence agencies don’t come up with the requirements, the policymakers come up with the requirements,” Alexander said.
He added sarcastically: “One of those groups would have been, let me think, hold on, oh! – ambassadors.”
Passing the buck
As the NSA points the finger at the Obama Administration for ordering the mass surveillance of European citizens, the White House is seeking to distance itself from the scandal, intimating the NSA was acting of its own volition.
Secretary of State John Kerry addressed the accusations, that the NSA recorded millions of European citizens’ telephone calls, in a video conference to London on Thursday. Kerry conceded that US surveillance had “reached too far” and stated that the NSA had been conducting its espionage on “automatic pilot.”
“In some cases, I acknowledge to you, as has the president, that some of these actions have reached too far, and we are going to make sure that does not happen in the future,” Kerry said, stressing an inquiry is currently underway to reassess American intelligence gathering programs.
Washington came under fire this week when a delegation from the EU came to get answers over the NSA’s activities in Europe. According to the revelations released by former CIA worker, Edward Snowden, to the press, the US not only targeted regular citizens, but also businessmen and high-profile politicians.
The White House did not give many answers to the delegation, they instead sought to justify espionage in Europe as a measure to protect against terrorism.
“It is much more important for this country that we defend this nation and take the beatings than it is to give up a program that would result in us being attacked,” Alexander told the House of Representatives Intelligence Committee on Wednesday. He went on to say that the US only collected data related to warzones in the Middle East.


