INTELLIGENCE ISSN 1245-2122 N. 76 New Series, 9 March 1998 Editor Olivier Schmidt (email intelligence-adi@wanadoo.fr; web http://www.blythe.org/Intelligence) TABLE OF CONTENTS, N. 76, 9 March 1998 FRONT PAGE ISRAEL - FUTURE OF MOSSAD DECIDED ... IN BRUSSELS p.1 TECHNOLOGY AND TECHNIQUES DES ENCRYPTION AUTHORIZED AS IT GOES "DOWN THE DRAIN" p.2 HIGH-TECH BIO-CHEM AGENTS "VX" & "AGENT 15" IN THE GULF p.3 HISTORY AND EVOLUTION OF SPECIAL FORCES p.4 INTERNET - "Cyber Anti-Terrorists" Arrive. p.5 GPS - Jammers Too Good for Their Own Good. p.6 BIO-CHEMO ATTACKS - More Information Needed & Out. p.7 LAW ENFORCEMENT - Open "Export" Market. p.8 TERRORISM - Unknown Definition and Lost Money. p.9 LIE DETECTORS - Polygraph Gets Computerized. p.10 SMART CARDS - A Good Surveillance Technique. p.11 SATELLITES - Allied "Specs" for Russian Spy in the Sky. p.12 ID CARDS - Colombia Places Its Citizens On File. p.13 BOMBS - "Smart Penetrators" Ready for Iraq. p.14 PEOPLE USA - ROBERT D. STEELE p.15 GREAT BRITAIN - STEPHAN KOCK p.16 GREAT BRITAIN - PETER MC NEIL p.17 FRANCE - RAYMOND "REGNARD" NART p.18 USA - Frederic Whitehurst. p.19 USA - Clinton Brooks. p.20 USA - Ron Lee. p.21 USA - Arthur Money. p.22 USA - David Holmes. p.23 SWITZERLAND - Daniel Teleshkaf. p.24 BAHRAIN - Khaled bin Muhammed bin Salam al Khalifa. p.25 SOUTH KOREA - Lee Jong Chan. p.26 AGENDA COMING EVENTS THROUGH 3 APRIL 1998 p.27 INTELLIGENCE AROUND THE WORLD USA - TROUBLED DOWNSIZING AT KROLL-O'GARA p.28 USA - NRO's New "Transparency". p.29 USA - Law Enforcement Statistics. p.30 USA - Crypto Czar's Crypto Travels. p.32 USA - Bay of Pigs Review. p.32 GREAT BRITAIN - SIR GERRY HELPS SIS "OUT OF THE CLOSET" p.33 GREAT BRITAIN/CHILE - DEATH OF JOURNALIST J. MOYLE p.34 GREAT BRITAIN - Mardi Gra Bomber Back Again. p.35 GREAT BRITAIN - Officer Spied for Serbs. p.36 NORTHERN IRELAND - QUESTIONS ON RUC ACCUSATION OF IRA p.37 FRANCE - ECONOMIC INTEL. "JUST PART OF THE CURRICULUM" p.38 FRANCE - Difficult Intelligence Transparency. p.39 GERMANY - EAVESDROPPING LAW BREAKS RULING COALITION p.40 SWITZERLAND - Ongoing Intelligence Reorganization. p.41 WESTERN EUROPE - FATF & MONEY LAUNDERERS DISCOVER INTERNET p.42 WESTERN EUROPE - NEO-NAZI NETWORK UNCOVERED p.43 WESTERN EUROPE - "EXPENSIVE" DATA PROTECTION COMING UP p.44 HUNGARY - Secret French Cooperation Now Official. p.45 KAZAKHSTAN - New Service Down to Business. p.46 COLOMBIA - Officers and Israelis Indicted. p.47 --------------------------------------------- Intelligence, N. 76, 9 March 1998, p. 4 HISTORY AND EVOLUTION OF SPECIAL FORCES Last June, we mentioned that "Intelligence" had been somewhat critical of certain recent publications by the semi- governmental French Fondation pour les Etudes de Defense (FED) (INT, n. 57 8) but we were pleasantly surprised by the FED's "Approches Francaises du Renseignement - Y-a-il une 'Culture' Nationale?" (French Approaches to Intelligence, Is There a [French] Culture of Intelligence? , edited by Admiral Pierre Lacoste, former director of DGSE foreign intelligence (INT, n. 61 34). It looks like the FED is "keeping up the good work" with its recent publication, "Des Forces Speciales aux Affaires Civilo-Militaires" (From Special Forces to Civil-Military Affairs; n. 10, 1997, 62 pp.), although the title is not an exact discription of the contents. Indeed, almost half of the report consists of one in-depth article, "Special Forces and Operations - Sketch of a Paradigm and Thoughts about the French Case", by Eric Denece and Nicolas Warnery, while the five remaining articles are only a few pages each. Denece and Warnery clearly describe the creation of special forces and their military function during World War II, and how they evolved during the Cold War into anti-insurgency units and now into anti-terrorism units. The post-WW II development of special forces is first analyzed in Great Britain and Russia (Soviet Union) where such units originally developed. Then their development in the US and France is described, with the greatest detail reserved for the French case. All these countries seem to have felt the obligation to regroup their special forces under a unified command which became the US Special Operations Command (USSOCOM) in 1987, the British Director of Special Forces in 1987, and the French Commandement des Operations Speciales (COS) in 1992. Studies of special forces usually end with history and a few "daredevil" "Mission Impossible" stories, but the authors avoided this easy way out and dug into the fundamental change in military philosophy that has moved special forces from a convenient unconventional warfare role to a central role, present and future. The six types of special forces missions are: intelligence collection and transmission; destructioin of vital enemy targets; reception and guiding regular units; hostage rescue; pilot search and rescue; evacuating citizens in a foreign country; protecting VIPs and installations abroad; special forces training abroad. Clearly, this list excludes "Mission Impossible" covert action which is considered the role of intelligence services' special units. Nonetheless, in France, that unit, the DGSE's "Service Action (SA)" is drawn from the COS, and in Great Britain, from the SAS which implicitly includes covert operations in the above list of six "military" functions. Special operations didn't begin with modern warfare, as the authors clearly show, with the 25 October 1804 kidnapping of British ambassador in Hamburg, Sir Rumbold. Since he was held responsible for numerous espionage and sabotage operations in France, Napoleon Bonaparte ordered Commandant Maison to clandestinely land in Prussia and kidnap the British ambassador. This, of course, was far from being the first "dirty trick" ("coup fourre") between the British and French and the beginning of the "mesentente cordiale". --------------------------------------------- Intelligence, N. 76, 9 March 1998, p. 15 USA - ROBERT D. STEELE It looks like the "crunch" has come in the market for economic and business intelligence with Kroll Associates being bought by O'Gara Company in the States (see article below) and France's Intelco disappearing back into the defense hierarchy from which it sprang full blown. Little wonder then that open source intelligence "guru", Robert D. Steele, and his Open Source Solutions (OSS) group has undergone major restructuring. On 30 January, OSS "spawned" OSS USA under Mark Lowenthal, former staff director of the House Permanent Select Committee on Intelligence from 1995 to 1997 (INT, n. 6 25), to work exclusively with US government agencies on a classified basis - - a very odd fate for an "open source" institution. Late last year, according to press reports, SRA International bought into OSS, with John Bohn, former Moody's Investment and US Import- Export Bank chief, becoming the head of OSS Inc., and Jan Herring, a veteran of the CIA and Motorola, becoming the head of OSS Business, thus leaving Steele head of OSS Global with OSS activities abroad which is essentially organizing OSS conferences. Steele has thrown himself into his new role with characteristic enthusiasm and, on 23-26 March, the "First Annual European Intelligence Professionals Conference and Exhibit" (EuroIntel'98, see Agenda below) will take place in Brussels. However, Steele's enthusiasm and active entrepreneurial style do not always produce positive results, especially in places such as Western Europe. By claiming that EuroIntel "will be offered in London in 1999, in Paris in 2000, in Munich in 2001, in Copenhagen in 2002 and again in Brussels in 2003, always with host government involvement", Steele has not only "raised eyebrows", but has possibly interested business intelligence clients wondering about the accuracy of such declarations. According to one specialist, no proof of "government involvement" has been forthcoming and "what 'host government', around in 1998, can guarantee to be around in two years or more?" Steele has apparently been asked to "tone down" the publicity for his meeting, and suc references as ... "sponsored in part by several European government intelligence organizations". It is true that Europol has officially sanctioned the use of its name for EuroIntel'98, but this doesn't seem to be the case for other Western European institutions often cited in EuroIntel'98 publicity. Steele's "go-getter" attitude probably served him well when he helped the US Marines set up what was probably the first open source intelligence unit, and it also helped him make his mark in business intelligence after he left US government service. But now, with the market "crunch' in economic and business intelligence, specialists are divided between those who say Steele is still a real "go-getter" and those who say he, and business intelligence, are "running on empty". "Intelligence" founding editor, Olivier Schmidt, was an invited speaker at Steele's second OSS conference in the US in 1993 and firmly believes that Steele has made, and continues to make, an important contribution to open source intelligence, but the market is shrinking and only high-quality, valuable contributors will survive. --------------------------------------------- Intelligence, N. 76, 9 March 1998, p. 33 GREAT BRITAIN SIR GERRY HELPS SIS "OUT OF THE CLOSET" The Secret Intelligence Service (MI6) has sent its first homosexual couple abroad to spy for Queen and country. The two men, who have had an open, stable relationship for years and are not regarded as a security risk, have been posted to one of MI6's larger stations, according to Sir Gerald Chlerici Warner, a former SIS senior officer and Co-ordinator of Intelligence and Security at the Cabinet Office in the late 1980s. Sir Gerry made the statement at what was supposed to be a private function for the Friends of the Heath Library, in London. However, a copy of his speech was obtained by the local borough weekly, the 'Camden New Journal". The former Cold War spy claimed that MI6 now has a staff of 1,800, and has recruited more women than men over the past 18 months, "but there are more men in the service, which requires intelligence and being good in relationships." He described MI6 as the "human end" of intelligence, operating in a straightforward way, and did not engage in blackmail "because it is corrupting" and British agents would be behaving "like the other side and like criminals". Sir Gerry, born in 1931 and educated at Oxford University, joined the Foreign Office in 1954, served as Third Secretary in Peking from 1956 to 1958, as Second Secretary in Rangoon from 1959 to 1961, and in Warsaw from 1963 to 1965. From 1966 to 1968, he was First Secretary with the British delegation to the UN European headquarters in Geneva, and served in Kuala Lumpur from 1974 to 1976. For the next 12 years, he was senior counselor at the Foreign Office and later served at the Cabinet Office as Whithall's intelligence liaison supremo. For a man of such a wide range of experience, his comments about MI6 and its latest "politically correct" posting may be regarded as an indiscretion. It is more credible to assume that his "praise" was intended to find its way into the public domain, presenting MI6 as a modern organization without the agency having to say so itself and be accused of "tokenism". COMMENT -- Recognizing that "sexual preference" for the same sex was not automatic grounds for exclusion from classified intelligence work in Anglo-saxon services dates back more than two decades. Rear Admiral Bobby Inman, as chief of the US NAS, is reportedly the first to have allowed a known homosexual official to retain his position. After a long trial, Adm. Inman agreed to keep the official at his job if he openly told his immediate family and close friends about his "sexual preference" ... while a NSA security officer listened in. Continental European intelligence services have historically been much more "laid back" about sexual preference, to the point that at least one of France's most senior intelligence officials found that it in no way hindered his career or the confidence successive governments had in his ability or his integrity. --------------------------------------------- Intelligence, N. 76, 9 March 1998, p. 42 WESTERN EUROPE FATF & MONEY LAUNDERERS DISCOVER INTERNET In its recent annual report, released in Paris on 12 February 1998, the OECD Financial Action Task Force (FATF) singles out the Internet, real estate, gold trading, and insurance as the major sources of international money laundering. The real "newcomer" on the list is the Internet. In its "1996-1997 Report on Money Laundering Typologies", the FATF described how it met with four e-money providers: the Portuguese Sociedade Interbancaria de Servicos (SIBS) with its Multibanco Electronic Purse; the British Mondex; the U.S. Cybercash; and the Dutch Interplay with its ChipKnip e-cash (INT, n. 61 8). The FATF noted that there is nothing that "will make them especially attractive to money launderers." One year later, "a shift to laundering activities from the usual banking world to non- financial business has been noticed" and Internet financial transactions have made the hit parade. According to the FATF, Internet hinders investigations and recommends further training for lawyers in identifying Internet laundering schemes. Someone did some fast catching up; either the FATF or international money launderers. COMMENT -- This sudden appearance of high-tech in the FATF report has been accompanied by an incredible wide call for new high-tech eavesdropping laws which target both the traditional telephone system and newly mobile telephones systems, the Internet and other computer networks. The most noted current example is Germany (see article above) which has just extended eavesdropping into private residences. In the past few weeks, there have been calls for, or plans announced for, similar eavesdropping laws in Australia, Japan and Hungary. At the same time, the FBI is going to create the 125-strong $64 million "anti cyber-crime" National Infrastructure Protection Center (NIPC) with six investigative squads (see p. 5 above). Great Britain, France and Germany have also created dedicated "cyber-cop" units, and all developed countries will soon have done so. Even Switzerland, following last year's "close call" with the FATF (INT, n. 61 8), passed "appropriate legislation" concerning money laundering and banking secrecy. This year, it was Indonesia, Malaysia, and Vanuatu that drew attention. According to FATF, "given the absence of appropriate legislation and the regime of strict bank secrecy in Indonesia, money laundering is only part of the financial crime that prevails there, essentially in the shape of large-scale fraud and corruption". With banking secrecy "out of the way", it was only logical that FATF's next obstacle would be the Internet and high-tech information technologies. ---------------------------------------------