INTELLIGENCE ISSN 1245-2122 N. 66 New Series, 8 September 1997 Publishing since 1980 Editor Olivier Schmidt (email intelligence-adi@wanadoo.fr; web http://www.blythe.org/Intelligence) TABLE OF CONTENTS, N. 66, 8 September 1997 FRONTPAGE GREAT BRITAIN - D. SHAYLER'S MI5 GOOD OLD DAYS STORY p.1 TECHNOLOGY AND TECHNIQUES MORPHO SYSTEMS FINGERPRINT TECH EVERYWHERE p.2 NEW FRENCH BOOKS ON CRIME, INFORMATION & INTELLIGENCE p.3 POLYPHEM BREAKS SURFACE AND MAKES WAVES p.4 CODES - Major Up-Dated PGP Resources & FAQs. p.5 LASERS - Army Wants to Zap Air Force. p.6 VIRUSES - Web Pages Full of Hoaxes. p.7 SENSORS - "Android" Chemical Arms "Sniffer". p.8 BOATS - Luxury Gunboats for Bandits. p.9 PEOPLE U.S.A. - JAMES M. ATKINSON p.10 GREAT BRITAIN - HOWARD MARKS p.11 FRANCE - JEAN-JACQUES LIONEL p.12 INDIA/GREAT BRITAIN - PETER BLEACH p.13 U.S.A. - Jerome R. Sullivan. p.14 U.S.A. - Hedy Lamarr. p.15 ITALY/LIBYA - Musbah Abdulghasem Eter. p.16 CZECHOSLOVAKIA/U.S.A. - Jan Sejna. p.17 ALBANIA - Arben Karkini. p.18 RUSSIA - Valentin Korabelnikov. p.19 RUSSIA/U.S.A. - Oleg Kalugin. p.20 MEXICO/U.S.A. - William Weld. p.21 PANAMA/PERU - Gustavo Gorriti. p.22 AGENDA COMING EVENTS THROUGH 15 OCTOBER 1997 p.23 INTELLIGENCE AROUND THE WORLD U.S.A. - FEDS TRYING TO LOCK PANDORA'S ENCRYPTION BOX p.24 KROLL KEEPS ITS HEAD ABOVE TROUBLED WATERS p.25 ECONOMIC ESPIONAGE ON THE BOOKS & IN COURT p.26 Reserve Intelligence "Keeps in Shape". p.27 CANADA - CSIS Reports & Gets to Work. p.28 GREAT BRITAIN - SO13'S "TOUT STRATEGY" QUESTIONED p.29 CRACKDOWN ON POLICE CORRUPTION p.30 CRASH OF THE HIGH FLYING FLYERS p.31 NORTHERN IRELAND - SINN FEIN INVITED TO PEACE TALKS p.32 FRANCE - POOR SECURITY IN DEATH OF PRINCESS DIANA p.33 "Fun & Games" with "Intelligence" Red Issue. p.34 GERMANY - HEADS ROLL DURING BND "HOUSECLEANING" p.35 Looking for Nazi Gold & Gen. Gehlen. p.36 NETHERLANDS - NEW BVD CHIEF "TRASHED" BY MEDIA p.37 BELGIUM - Secret Recruits by the Wrong People. p.38 WESTERN EUROPE - "GLADIO" BORN ON W.W. II GIBRALTAR p.39 BULGARIA - MOBILTEL STOCKS' STRANGE SOFIA-MOSCOW ROUNDTRIP p.40 RUSSIA - FSB Becomes a CIA Look-Alike. p.41 PANAMA - Uncle Sam Moves North. p.42 LATIN AMERICA - U.S. "Backyard" Security Policy. p.43 ISRAEL - Buying Out of the War. p.44 Intifada at ... Defence Industries. p.45 PALESTINE - Secret Duvdevan Unit's Bad Press. p.46 IRAQ/GREAT BRITAIN - ELIMINATION OF GULF WAR PRISONERS INVESTIGATED p.47 VIETNAM - CIA BACK AT WORK ... BY INVITATION p.48 --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 4 POLYPHEM BREAKS SURFACE AND MAKES WAVES A few months ago, we noted that France's Aerospatiale had successfully tested its fiber-optic Polyphem guided missile which is "flown" by an operator who uses infrared imagery transmitted from the missile's nose-mounted camera through the thin fiber-optic cable (INT, n. 61 5). During the recent test, Polyphem was launched from a ground station, but it could be launched from a submerged submarine for reconnaissance duty or "search and destroy" sorties above water. Since Western navies are moving more and more toward "brown water wars" to be fought in relatively shallow littoral zones, submarines will be more exposed to counter-measures and both airborne and land-based attacks. Polyphem is an original technological solution to that coming problem and offers both "eyes" and a "punch" to blind defenseless submerged submarines. This summer the U.S. Pentagon -- which called Polyphem "an intriguing little thing" -- and the German navy expressed clear interest in the missile and other possible uses. The U.S. Navy was expected to decide whether it would participate in a cooperative development program. The advantage for the U.S. Navy in the French "intriguing little thing" is that fiber- optic equipment for launching torpedoes already exists on navy ships. Moreover, the Polyphem's 30 km. plus range is greater than that of the rival U.S. Enhanced Fiber Optically Guided Missile (EFOGM). It is also "further down the development road" with four successful test flights behind it. The EFOGM has fallen apart on its two attempted test flights. --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 12 FRANCE - JEAN-JACQUES LIONEL On 28 August, the daily "Le Monde" in Paris announced the appointment, by Socialist Prime Minister Lionel Jospin's cabinet, of Prefect Jean-Jacques Pascal, 54, as the new director of the French Direction de la Surveillance du Territoire (DST) internal security service. Pascal replaces the much-criticized Prefect Philippe Parant (INT, n. 59 34, n. 60 29 & n. 63 28) who had been appointed DST director in October 1993 when powerful right-wing conservative political figure, Charles Pasqua, was interior minister and, therefore, Parant's superior. "Le Monde" and other media describe Pascal as a professional intelligence specialist with clearly Socialist opinions. Although this is true, many French intelligence professionals consider Pascal a "Category A parachuted administrator [political appointee] with a 'white' [blank] career in intelligence". Police Nationale director of personnel from May 1984 to May 1986, and then head of the Renseignements Generaux (RGs) political intelligence police from June 1990 to February 1992, Jean-Jacques Pascal has "sailed through" an unremarkable career in remarkably troubled times and always under the wing of powerful Socialist interior minister, Pierre Joxe, currently head of the French Cours des Comptes audit court. While Pascal was RG chief, homosexual pastor Rene Douce was kidnapped and murdered by "former" or active officers "associated" with the RGs, but Pascal's career doesn't seem to have suffered from this "incident". Conservative President Jacques Chirac had him removed from intelligence and put on an administrative "side- track" job. Such a political appointment is apparently causing the DST to "close in on itself" as career professionals watch to see "which way the wind blows" and how much backing, and for how long, Pascal will have. In such a situation, no "miracles" or major successful operations are expected from the DST as it "hunkers down" under the Socialist government. The DST's traditional rival, French DGSE foreign intelligence, under the Defense Ministry, has "popped the corks on champaign bottles" celebrating the DST's major loss of political clout. According to specialists, this situation will continue until a new director of the DGSE can be found to replace Jacques Dewatre (INT, n. 59 34 & n. 60 29). But since Prime Minister Jospin and President Chirac can't agree on a name, the DGSE seems to be relatively happy with the present situation. --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 33 FRANCE POOR SECURITY IN DEATH OF PRINCESS DIANA The death of Princess Diana on 31 August in Paris in a car accident has generated an enormous amount of unsubstantiated reports in the press concerning the security arrangements on the night of Saturday 30 August. Princess Diana, her companion, Dodi al Fayed, and the French security agent and driver of the car, Henri Paul, all died in the crash. Only Mr. Fayed's British bodyguard, Trevor Rees-Jones, the only one wearing a seat belt, survived. Since then, accusations have been launched in all directions and, according to certain specialists, may serve to "muddy the waters" and encourage out- of-court determination of responsibility -- other than that involving the implicated paparazzi. Dodi al Fayed was the only son of Mohamed al Fayed, the billionaire Egyptian owner of London's prestigious Harrod's department store and of the Ritz Hotel in Paris from which Dodi al Fayed and Princess Diana left by car. Rees-Jones, 29, is a six-year veteran paratrooper of the British Army who served in the Gulf War and in Northern Ireland. He was married two years ago and later separated from his wife. Known as "Dodi's shadow", he has been a member of a 40-strong security detail employed by the Fayed family over the last two years and generally works on a week-on, week-off rotation. He served a quiet tour of duty in Northern Ireland, since his name is not mentioned in dispatches. He was supposedly in Kuwait before Iraqi forces invaded, meaning he may have been part of a British Ministry of Defence training program or a military attache. He is reportedly also a former member of the close protection team of the Royal Military Police responsible for the protection of British VIPs and diplomats. Paul, 41, who was driving the car, has been described in most diverse manner in the press. The sensationalist "Sun" described him as a drunkard addicted to speed, while the "Guardian" described him as a quiet man whose hobbies were sailing and flying. French intelligence, and people who knew him, have told "Intelligence" that there are a lot of rumors circulating which should be "corrected" concerning Paul and his role. First, he was a lieutenant in the French army and a paratrooper -- not a member of the navy. Second, he was a professional security guard, but he was not a qualified chauffeur and never received any specialized training as such. Moreover, his employers, the Ritz Hotel, and indirectly the Fayed family, knew he was not a specialized chauffeur. Third, he was an ordinary but faithful "huissier de securite" security guard at the Ritz and by no means n. 1 or n. 2 man for Ritz security, according to his friends. Finally, he had finished his service on Saturday evening and had left the Ritz when he was called back by his employers. After finishing his service, he had every right to drink and he had done so. The Ritz, and perhaps Dodi al Fayed himself, had decided to "run a diversion" against the paparazzi stalking Princess Diana and sent off Dodi al Fayed's designated chauffeur in a car. The hotel then called in Paul and a Mercedes S-280 -- not an armored 600 model as some reports say -- to have the celebrities leave by the back door. It would have been the responsibility of the hotel to check that Paul was in the right condition to drive the Mercedes, although his employers can argue that he should have warned them he had been drinking. At any rate, the hotel supposedly gave Paul an impossible order: lose the paparazzi. According to security specialists contacted by "Intelligence", it is almost impossible for even the best professional drivers to lose motorcycle-mounted paparazzi in a city. Security professionals avoid such situations by other means, such as sabotaging the paparazzi motorcycles or driving into one entrance and out through another of a guarded building. In less than optimal conditions, and given an impossible task, Paul, in true paratrooper spirit, nonetheless "accepted and executed". In an unfamiliar car, on an unfamiliar trajectory, he entered a tunnel which has a noticeable dip and left turn at the same time. Flying off the top of the dip at 130 to 140 kph may have activated the Mercedes anti-blocking brakes but surely caused Paul to overcorrect and swerve left, hitting a cement column. COMMENT -- If the above details are confirmed, this would mean that the death of Princess Diana, Dodi al Fayed and Henri Paul are due to a major accumulation of errors and a glaring lack of security professionalism. In saying that, it becomes clear that the Fayed family's Ritz Hotel will have some troublesome questions to answer. --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 38 BELGIUM - Secret Recruits by the Wrong People. According to German media reports, Belgian intelligence hasn't recruited any new agents in the last ten years. This rather incredible statement may be part of a budget-time campaign because the news was accompanied by a request to hire 33 new intelligence officers to concentrate on organized crime and sects. However, Russian organized crime figure, Sergei Mikhailov, currently in prison in Switzerland, apparently didn't have much trouble recruiting an agent among Belgian politicians. According to press reports, Mikhailov gave the extreme-right Front National deputy chief, Philippe Rozenberg, who is also a Brussels regional government MP, a $51,000 bribe in return for submitting a request to UN Human Rights Committee concerning his case. --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 45 ISRAEL - Intifada at ... Defence Industries. On 24 June, Avigdor Ben-Gal, chairman of Israel Aircraft Industries (IAI) got a taste of "Intifada" following his announcement that he had met with Lockheed Martin Corp. on 15 June to discuss the possibility of a merger. Thousands of irate IAI workers blocked IAI headquarters in Lod and attacked Ben-Gal when he tried to enter his office. The state-owned IAI is a possible candidate for privatization which would mean downsizing and loss of workers' benefits. --------------------------------------------- Intelligence, N. 66, 8 September 1997, p. 48 VIETNAM CIA BACK AT WORK ... BY INVITATION In June, we mentioned the "stable cleaning" taking place in Vietnamese law enforcement and security which resulted in eight death sentences for drug trafficking (see "Western Aid for Intelligence Stable Cleaning"; INT, n. 61 40). On 7 May, the U.S. reopened its embassy in Vietnam and intelligence exchange is on the agenda. The U.S., Germany, and France all count on using Vietnam as a strategic intelligence platform to monitor China following the "handover" of Hong Kong to Beijing. But to run an efficient intelligence operation in Vietnam, the Western allies need "shipshape" Vietnamese police and intelligence services. According to specialists, the May drug trial was the first big sweep and will soon be followed by "law enforcement training programs" and "exchanges". The job isn't finished yet since drunken border guards recently caused another incident by shooting up local officials in Thua-Thien Hue Province, killing seven persons. However, according to French intelligence sources, U.S.- Vietnamese intelligence cooperation is already under way with the recent arrival in the country of a four-man CIA team specialized in infiltration-exfiltration. The team supposedly consists of two "guards" (probably arms specialists or members of the Special Forces), one C4I communications specialists and a team leader under "deep cover" with a security company using the strange name of "Shadow Company". COMMENT -- Some specialists see the hand of the U.S. behind the recent release of major political prisoner, Pham Duc Kham. It is true that Vietnam and the U.S. are playing a "high stakes" game. Vietnam knows the CIA is now obliged by the Intelligence Budget law to produce an annual report on China and its development of military equipment. According to a confidential report prepared for the U.S. government, "most importantly, U.S. officials are concerned about the possibility that Chinese military will obtain access to sensitive U.S. technology exported to Hong Kong ... the United States will closely monitor Hong Kong's administration of its export controls" [and we might add] ... from Vietnam. The Pentagon is currently fighting against the export to China of a high- temperature skull induction furnace made by Consarc Corp. in Rancocas, New Jersey. The furnaces are used in modern metallurgy but, without modification, can be used to make smaller and better nuclear warheads. In short, there are several good reasons for U.S.-Vietnamese intelligence cooperation. ---------------------------------------------