ISSUE NUMBER 71A BRIEF REVIEW

R E A D B Y T H E W O R L D ’ S I N T E L L I G E N C E C O M M U N I T Y

SPYINTELLIGENCE MAGAZINE

EYE

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PUBLICATION DATE DECEMBER 2010

VOLUME IX NUMBER SEVEN (ISSUE 71)

ISSN 1364 8446 publication date:

Dec/Jan 2010/2011

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EYE SPY 71

From the editorAL-QAIDA HELPED BY RELEASE OF US CABLES

James Woolsey, former D/CIA

“WikiLeaks has endangered lives and caused worldwide problems...its and Assange’s actions are utterly irresponsible.”

MI6: MOUNTAIN CLIMBERSBritain’s Secret Intelligence Service and the CIA were recently duped by a Taliban ‘actor’ who managed to securearound $500,000 in cash for the extremist movement with promises of access to Mullah Omar. In this informativefeature, Eye Spy examines how MI6, using all its experience in creating communication back-channels, wascharged with an almost impossible task given the unreliability of contact men in the region.

A series of calamitous errors and incorrect informationbriefs wrecked a covert MI6 operation to split theTaliban from its al-Qaida neighbour. The primary manrelied upon to make contact was known to MI6...

A heavily armedoperational ISAF

Special Forces’ patrolin Afghanistan

A Top Secret Interpol signal was sent to various European and US intelligence services in lateNovember. It contained critical information by way of informed sources in Iraq. The main thrust ofthe report focused on a number of al-Qaida operatives who had been despatched to carry outsuicide bombings in several capital cities - one of which was Stockholm, Sweden. We have allseen the pictures coming out of the Scandinavian country concerning a failed car-bombingoperation intended to kill hundreds of Christmas shoppers. Thankfully the bomber, Taimor al-Abdaly, who actually resided in the UK, failed to detonate properly his explosives. Now thesearch is on for other suicide bombers who may already be in place and for their support net-

work called the ‘Northern Project’. There is a real threat this festive season.

In recent weeks al-Qaida operations have taken place across the globe. From November’s failed attempt to blowup cargo aeroplanes enroute to America from Middle East and Europe, to serious plots being disturbed in Bel-gium, France, Germany and America. And in Spain and Thailand, a clever crime gang with links to al-Qaida hasbeen arrested. This outfit was supplying roaming operatives with high quality bogus passports, new identifies andnew residences. There is simply no respite for the international intelligence community.

And just a short note on WikiLeaks’ release of the illegally acquired US cables. There is absolutely nothing in thedocuments which I have read that surprises me. Is some of the material useful to terrorists - definitely. And whatwill happen if it can be proven that the release of these documents has led to the death of a US or British soldier inAfghanistan, or anyone else for that matter? Has its creator Julian Assange and his inner circle of backers a secretagenda? - watch this space. Utterly irresponsible.

A BRIEF OVERVIEW OF ISSUE 71 NOW FOLLOWS

The Mossad intelligence service has been in the news of late - connectedto three assassinations, one of which allegedly took place over 20 yearsago. The name Uwe Barschel might not be familiar to most people, but hisdeath in a Geneva hotel in 1987, holds as much intrigue to Germans asdoes the case of Litvinenko to Britons. Barschel was linked to the Iran-Contra affair, and somehow ended up dead - fully clothed in a bathtub.

Now, a forensic investigator using new techniques has announced hebelieves Barschel was murdered. And of course, all eyes are on theMossad again.

Eye Spy examines in detail if this strange case is representative of thework of the Israeli spy agency, why Barschel might have been targeted,and its probable threads to some well known intelligence agencies...

THE GENEVA SANCTIONIncident in Room 317

TARGET NATOAl-Qaida’s Port of EntrySeveral people suspected of creating an al-Qaida umbrella group inBelgium, have been arrested following a year-long surveillance operationwhich spanned a number of countries in Europe. The group was allegedlyon the verge of launching a terrorist attack in Belgium, with much specu-lation that their target was the headquarters of NATO, situated in theHaren area of Brussels.

Eye Spy investigates how the group is using port cities as access routesto the continents of the world....

There was quite a media rush to publish the contents of hundreds of thousandsof US diplomatic cables obtained illegally by the WikiLeaks web site. Surpris-ingly, most intelligence watchers who have examined the communicationsagree on one major point, there is virtually nothing of surprise in the material.What is apparent is a dark hidden agenda...

EXTRACT: Diplomats talk with each other at official meetings, conferences, overa drink, in the company of friends, at trade fairs etc. Adding “raw” comment toofficial letters happens every day, on occasions it is a person not a departmentexpressing an opinion. The material is often frank, particularly so in someinstances, perhaps offensive, yet it is often “off the cuff”, but this happensacross the globe, and is not some sort of virus only carried by US diplomats.Eye Spy was told by a senior UK intelligence source, “there must be thousandsof officials from countries all over the world, who are now trying to recall whatthey wrote or said about a topic or individual.”

As for the “revelation” that Secretary Hillary Clinton asked some members ofthe US diplomatic corp to gather intelligence at the United Nations, everyone inthe industry knows that the UN headquarters is a “melting pot” of espionage.The problem for Clinton, is she signed the - National HUMINT CollectionDirective on 31 July 2009. And this in turn was forwarded to US embassiesacross the world. There is often a blurred line between the diplomatic andintelligence world, and this...

US DIPLOMATIC CABLES

Julian Assange’s actions havebeen described as irresponsible

and dangerous by former CIADirector, James Woolsey

Julian Assange - received material froma “bored US soldier” who faces a prison

sentence of over 50 years

FLYING AIR YEMENMail Movers Used as Bomb CarriersUS eastern seaboard targeted again: major cities continue to be al-Qaida’s ‘holy grail’, as newgeneration of terror planners seek to defeat porous international aviation security measures

EXTRACT: Five years ago, a London-based CIA officer learned that al-Qaida plotters had approached baggagehold workers at various premier airports, including Heathrow. The intention was to insert a bomb inside the luggagecompartment, or ignore an item from a connecting flight. However, with stringent security measures in place, theplan stalled, thus other forms of attack were sought. This resulted in an even more audacious plot to blow up a

dozen or so airliners simultaneously over the Atlantic. The destructionwould be so great and the wreckage virtually unreachable, that theauthorities would be hard pressed to understand what had hap-pened, let alone discover how the terrorists had achieved such a‘feat’.

By chance, GCHQ and NSA codebreakers intercepted a number ofpuzzling communications from the greater London area whichprompted MI5 to investigate. Additional intelligence was gleaned fromelsewhere. A location in the city was survellied and it soon became

obvious a major plot was forming. A terracedhouse - frequented by suspected terroristswas bugged by MI5, and the intelligencegleaned sent shudders through DowningStreet and the White House. The goal of theplotters was to kill 3,000 people...

This revealing feature provides an excellentoverview of a recent attempt to blow-up US-bound aeroplanes in a most audacious al-Qaida operation. Plus our investigatorsexplore the central figures behind the terrorgroup responsible for this plot, and a numberof other “test operations” which probed pooraviation security measures...

Nokia cell phone base board discov-

ered in one of the bombs. Eye Spy

provides additional commentary from a

former British military intelligence

undercover agent and an expert in

bomb-making - improvised explosive

devices (IEDs)

CREATING THE NEW JACKALSSpanish and Thai security services havedisrupted an intricate al-Qaida-linkedoperation to clone passports for its over-seas operatives. At the same time ascounter-terrorist officers raided addressesin and around Barcelona, police in Thailandarrested several people as they attemptedto cross the border to Laos through thenortheastern province of Nong Khai.

Eye Spy reveals how this huge joint-international operation actually began aftervital intelligence was gleaned by the CIAand the Indian Intelligence service - RAW.

The case is also one of the first indicatorsthat al-Qaida has established excellentliaisons with organised crime gangs....

Numerous al-Qaida operativesare now carrying some of thebest quality-bogus passportsever created - complete with

new identities

Eye Spy feature on a new movie - Fair Game - that covers the Iraq-Niger yellowcake papers, but focuses alsoon the shadowy events that led to the “outing” of CIA NOC operative - Valerie Plame.

EXTRACT: It was one of the Agency’s most difficult periods, letalone tasks - trying to secure intelligence on a shadowynuclear trade deal involving Niger and Iraq - this within itswider remit to find WMD evidence in its secret Iraq weapons’search programme.

The countries had reportedly signed a document that wouldallow the export of yellowcake - used in the enrichment ofuranium to take place. Washington asked one of its mostexperienced African and Middle Eastern diplomats to take acloser look; former ambassador Joseph Wilson. But he foundabsolutely nothing, this despite a number of documents whichseemed to confirm Saddam was indeed moving or trying tosecure yellowcake....

FAIR GAMEDark CIA Moment Replayed

ValeriePlame

HESS AND THE MI6 STINGJohn Harris, author of an important new book on Rudolf Hess and hisflight to Scotland, has secured new evidence that suggests this part ofWWII history might have to be re-written...

EXTRACT: Haushofer chose to use theThomas Cook postal service which allowedregulated correspondence betweeninhabitants of belligerent nations and on 23September 1940, the letter was dulyposted. The Roberts family had beenfriends with the Haushofers since beforethe 1914-1918 war.

Unfortunately for Haushofer (and Hess) theletter was efficiently intercepted by theBritish censor prior to reaching Cambridgeand copies sent to MI5 and MI6. The letterstill remains on file at the National Archivesin Kew.

The problem that confronted Hess, wasthat the British Government would not

negotiate. Churchill had demonstrated his resolve to fight on by destroying the French Navy at Oran. That is why Hess hadto approach persons other than those in a governmental position; he knew that the sitting British government favouredAmerican support to a negotiated Anglo-German settlement.

However, he also knew that there were important persons within the British establishment who favoured a negotiatedsettlement with Germany....

HANDS OF THE MOSSAD?Two key Iranian nuclear scientists were targeted as theydrove to work in Tehran. The attacks, according to intelli-gence sources, bore all the hallmarks of a Mossadoperation, though were not necessarily carried out by itsdirect employees.

The incidents come just weeks after a cyber attack onIran’s Bushehr nuclear power plant stalled its opening,and the assassination of Dr Moussad Ali-Mohammadi,another nuclear scientist on 12 January 2010 (see EyeSpy 67). In this instance, the scientist was killed walking towork - a bomb exploded as he passed a parked motorcy-cle. That bomb was detonated by a cell phone at around7.30am.

In the latest incidents, which also took place around7.30am, and amid rush hour traffic, motorcyclistsattached explosive devices to the victims’ cars andfired automatic weapons before fleeing the scene.

An elementary particle physicist and a member of thescientific board of Beheshti University, died in the blastthat tore through his car near the intersection of ImamAli and Artesh freeways. His wife and driver were alsowounded in the attack.

Now Eye Spy has discovered the deceased was alsoinvolved in another government programme, thedetails of which are published here.

RUSSIA’S SECRET UNDERGROUNDIn the first book from inside Russia on the influence and role of theRussian security services for more than 15 years two remarkableRussian journalists have charted how the KGB rose from the Sovietashes and, assisted by Vladimir Putin, recreated itself as the FederalSecurity Service - the FSB.

In a riveting investigation ANDREI SOLDATOV and IRINA BOROGAN,two intrepid journalists who have written on Russia’s security servicesfor more than a decade, penetrate the secret world of the FSB, toillustrate how the agency has become, in the words of former FSBdirector Nikolai Patrushev, Russia’s ‘New Nobility’. Soldatov andBorogan’s book, The New Nobility, shows how Russia’s new secretservice was given unprecedented powers and emerged a moreshadowy and powerful force than its predecessor, the KGB. In thisdramatic excerpt from the book the authors describe the FSB’sunknown secret complex hidden beneath the streets of Moscow...

EXTRACT: When he was 12,Mikhailov and some friends under-took their first journeys into thesprawling mass of tunnels, sewersystems, and natural passagesbeneath Moscow. It wasn’t longbefore they made their first majordiscovery: a Stalin-era undergroundbunker deep below LeningradskyProspect.

In the mid-1990s, Mikhailov was aninternational media celebrity. Hehad become an underground guidewhose signature tours ended withhis emergence through a tunnel intoprominent Moscow locations suchas the centre of Red Square....

In this feature, MIKE FINN examines the High Frequency Active Auroral Research Programme, better known asHAARP, and the perception it is related to mind control principles

EXTRACT: We know from the ‘MoscowSignal’ (see Eye Spy 68) incident thatsuch signals can be transmitted froma nearby building or van, but intoday’s world such technology hasmoved on by leaps and bounds.

Among the many possible methodsavailable for consideration are mobilephone, television and radio, technol-ogy such as the H.A.A.R.P. (HighFrequency Active Auroral ResearchProgramme)....

H.A.A.R.P.

AT CYBER DEFCOM 1

Earlier this year US Cyber Com-mand chief, Lt. General KeithAlexander, said in his writtenresponse to questions during theconfirmation process, that, “underthe right circumstances,” CyberCommand would have the author-ity to use offensive cyber weaponsagainst military command andcontrol networks, weapons, powergrids, transportation-relatednetworks, national telecommunica-tions networks, and even enemies’financial institutions.

In early September 2010, theUnited Nation’s Telecommunica-tions Chief issued a warning andcalled on countries to join togetherin developing a coherent globalcyber security peace treaty or facethe very real possibility of an all-outcyber war. These were very strong words indeed.

But what was behind this warning - one that has driven a number of public and private sector sources to makesimilar statements....?

Recent Attacks Change Mindset of NSA

ANOTHER TARGETED ASSASSINATION

Few intelligence watchers doubt the prowess and ability of Israel’s intelligence services to conduct shadowy opera-tions anywhere in the world. In recent months both the Mossad and Shin Bet, the domestic security service, hasbecome increasingly pro-active against terrorist elements.

Eye Spy examines recent covert Shin Bet and the Israeli Air Force operations in the region targeting senior al-Qaidaliaison men and couriers.

In some cases, the surveillance intelligence has been provided by a most surprising source. A fascinating featurethat shows the hand of Mossad....

CIA’S SPY AND ATTACK PROGRAMMEAcclaimed international intelligence writer and investigator,Nick Fielding examines the impact of the CIA’s use of UAVsto tackle al-Qaida and the Taliban...EXTRACT: In November 2010, the US tried to get Pakistani permissionto extend the target areas in which drones could operate, hoping thatthe region around Quetta in Baluchistan could be covered in theagreement, as this is where much of the Afghan Taliban’s leadershipis believed to be based. The request was turned down. While support-ing the drone campaign in private, Pakistan is very sensitive to itsrepercussions. Politicians and activists in Pakistan have claimed thatthe drones have killed hundreds of innocent civilians.

However, a study conducted by three academics at the University ofMassachusetts-Dartmouth and published in November 2010, dis-putes this. Using material from their own database which they say isthe most comprehensive and accurate database compiled andpublished so far, they argue that the strikes have not only beenimpressively accurate, but have achieved and maintained a greaterproportionality than either ground operations in the area or targetingcampaigns elsewhere.

THE KRYPTOS CIA PUZZLEIt is one of the most enduring mysteries that has baffled professional and amateur code-breakers alike for years -Jim Sanborn’s ‘Kryptos’ - a coded sculpture at the CIA headquarters building in Langley, Virginia....

EXTRACT: Located in the Agency’s courtyard, sits a wonderful enigmatic piece of art that reflects the CIA’s obviousconnection to the world of intelligence, codebreaking and all things secret. Called Kryptos, which translates fromthe Greek word for “hidden”, the curved copper structure contains no less than 1,735 characters, and fourencrypted messages.

There are also other features surrounding the maindisplay which are intelligence related, including...

SVR Spy Ring: Double agent provided CIA withintelligence that exposed Russian spy ring in AmericaIn the game of espionage not everything is as it seems.No more appropriate sentence could be used to describethe summertime events which shook Russia’s powerfulSVR to its foundations. Having eleven agents exposed,removed, and then exchanged for four significant Westernagents and contacts, was a bitter blow to a nation that in2005 was told, “the FSB was about to embark uponplaying the great game again.” But since then there hasbeen much speculation about how the SVR agents,embedded in American society for the best part of adecade, and a mysterious senior intelligence handler - ‘Christopher Metsos’, were outed.

With much suspicion falling on Metsos (he was allowed to flee the USA anddisappeared on the island of Cyprus), there seemed to lie the answer. However, itis our understanding that back-channels were opened between Washington andMoscow before the agents were exposed, and this in turn led to a smooth andhasty conclusion when the spies were detained.

Now the real story about Russia’s important spy ring was broken. Eye Spyreveals how an intricate CIA operation that began years ago and involved adouble agent reached its end game. We also report on a dark comment by aKremlin official who said the “traitor” is being tracked...

UNDERGROUND LIAISONS

President Obama and his Russian counterpart,President Medvedev. Moscow is unhappy that asenior intelligence officer under apparent CIAcontrol, used a state visit to plan his escape

Christopher Metsos

FALLING DOWNPresident Obama’s controversial decision to try suspected terrorists heldat Guantanamo Bay Naval Base in civilian courts, is in tatters after one ofthe most notorious characters held in US custody was cleared of 276terror-related charges.

Eye Spy reports on the implications of the court’s decision, which rockedand infuriated the US Intelligence Community

ISRAEL’S SPY IN NEW FREEDOM BIDEye Spy looks at a wide range of new initiatives that have been actionedin an effort to help free Israeli spy Jonathan Pollard from a US prison...

Radio and communications specialist Paul Beaumont pro-vides a fascinating insight into the use of Number Stationsand their continuing relevance to today’s intelligence world...

EXTRACT: ....and denied their existence; some dismissed themas being trawler messages and others described them asexperimental messages to visitors from space! There was nocatalogue of these signals and persons gave them their ownidents, Magdeburg Annie being one, Bulgarian Betty another,for example. Unfortunately there was nothing to suggest‘ownership’ and certainly no list of common traits. It was much later that a de facto list, known as the ‘ENIGMAControl List’ was assembled that revealed the known stations and some peculiarities, the flotsam and jetsam of theshort wave spectrum, into some proper order. This list is now in its 24th edition.

Number Stations are transmitted in Morse Code, Speech and in Polytones. The speech stations use a variety oflanguages, usually synthesised; English, Russian, Spanish being the most common. Other stations have usedArabic as well as Mandarin and a variety of Slavic type languages. Farsi has also been intercepted. Voice stationsare also known as OWVC’s or One Way Voice Channels....

NUMBER STATIONS ANDINTERCEPTING SIGNALS

A ceremony was held at the National Cryptologic Museum (NCM) at FortGeorge G. Meade in Maryland to commemorate and to acknowledge withthanks the generous donation by noted historian Dr. David Kahn of his lifetime

collection of cryptologicbooks, memorabiliaand artefacts to themuseum and its library.A full report provides afascinating insight intothe collection....

DAVID KAHN COLLECTION

This astonishing graphic shows by volume, thedocumentation Pollard passed to Israel

AL-QAIDA STRIKES IN SWEDENUK Bomber and the Northern Project

An attempt to cause mayhem on acentral Stockholm street failed as twobombs manufactured by a former UKresident, only partially exploded. Withinhours of the attack, which occurred on11 December 2010, officials from theSwedish Security Service (SÄPO), saidthe incidents were an “act of terror.”

A few hundred feet away from theburning vehicle, police discovered thebody of a man, later identified as anIraqi-born Taimour Abdulwahab al-Abdaly.

The attack was part of a Europe-wideinstruction by al-Qaida’s ‘NorthernProject’ to strike in capital cities, and inareas busy with civilians.

LONDON 2012 OLYMPICS

A disagreement between government ministers and New Scotland Yard ha broken out over the threat level status ofthe 2012 London Olympic Games. British Intelligence believes it should already be heightened. Al-Qaida hasalready said it intends to attack the Games...

STUXNET AND ASSASSINSReport Exposes Tehran ConcernEye Spy SPECIAL REPORT that reveals the link between recentassassinations in Iran and the Stuxnet cyber attack...

EXTRACT: This involved phantom radar images appearing duringan Iranian military training exercise in late November 2010.Iranian military leaders immediately dispatched fighter jets takingpart in the exercise to intercept the six ‘bogies’ they believed tobe hostile foreign aircraft. Upon arrival in the target area, all theIranian fighter pilots saw was blue sky. Sounds like a cybercompromise to me; it also ‘mirrors’ an Israel operation conductedat the same time its Special Forces struck Syria’s nuclear facilityon 6 September 2007.

But the Iranian saga goes much further....

Bushehr nuclear plant

SPY v SPY: Confrontation between CIA double agent and SVR spy

VLADIMIR PUTIN: Talks about the SVR and its operation in the USA

BRADLEY MANNING: The soldier who provided US cables and intel to WikiLeaks

GCHQ: Scientist launches astonishing attack on the electronic listening arm of British Intelligence

NAVY SPY GAMES: A huge batch of classified documents has been found under the floorboards of Turkey’snaval intelligence command

MOSSAD: A change of senior personnel announced, including a new Director

AL-QAIDA CAN’T BE DEFEATED: Senior UK security official makes frank admission

NAVY SPY: Another US serviceman charged with espionage

SPY SATELLITE: Secret US organisation launches huge spy satellite

GARETH WILLIAMS: Latest on the MI6 man found dead in London

IGOR SUTYAGIN: MI6 contact man says he was given drugs in Moscow

STEALTH SUBMARINE: Britain’s most advanced submarine - secrets exposed

PHANTOM RAY: Unmanned super aircraft readied for tests - Photo Special

BOOK RELEASES: The latest intelligence-related books

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