[INDONESIA-POLICY] Spies

From: John MacDougall (apakabar@igc.org)
Date: Fri Sep 15 2000 - 17:05:19 EDT


http://www.foreignpolicy.com/issue_sept_2000/think_again.html

Foreign
              Policy
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Spies
By Loch K. Johnson
Virtually every nation resorts to the dark arts of espionage to protect
        its government, economy, and citizens. But with the end of superpower
        conflict, the spread of democracy, the advent of new information
technologies,
        and the emergence of a more transparent world, the central question
about
        spying today is whether it is still necessary.
Spying Is a Cold War Anachronism
Wishful thinking. True, global spying probably reached its zenith during
        the standoff between the United States and the Soviet Union. Spies,
though,
        have been around in one form or another since the Lord told Moses
to send
        men to spy out the land of Canaan. For all the talk of a global trend
        toward democracy and greater transparency, spies seem likely to
thrive,
        even in the absence of a superpower struggle.
In the United States, the intelligence budgetapproximately $30 billion
        in 2000is gradually inching back to its Cold War heights. (As a
general

        rule, nations spend on spying an amount equivalent to about 5 to
10 percent
        of their defense budgets.) The difference is that whereas the
United States
        used to allocate 65 to 75 percent of its intelligence resources to
spy
        on the U.S.S.R., it now devotes only about 15 percent to Russia.
The rest
        goes toward dealing with what the former U.S. Director of Central
Intelligence
        R. James Woolsey characterized in his 1993 confirmation hearings as a
        bewildering variety of poisonous snakes, whether terrorism, drugs,
the
        spread of weapons of mass destruction, ethnic conflict, or good
old-fashioned
        bad behavior between, among, or within nations.
Although just about every major intelligence service shrank in size after
        the Cold War, most have eagerly embraced the new threats mantra as
a strategic
        imperative. By 1994, the British Secret Intelligence Servicethe
United
        Kingdoms equivalent of the Central Intelligence Agency (CIA)devoted
only
        15 percent of its resources to the former U.S.S.R. (compared with
37 percent
        during the Cold War) and roughly 40 percent to fighting drugs,
terrorism,
        weapons proliferation, and money laundering, with the balance divided
        among individual countries. As Ernst Uhrlau, Germanys intelligence
chief,
        recently noted, he sees an ever stronger connection between
transnational
        issues and internal and bilateral conflicts. The transnational game
is
        one that even lesser nations feel compelled to play: In 1997, seven
years
        after achieving independence, Namibia cited terrorism, ethnic
conflict,
        and the trafficking in drugs, arms, and diamonds as the rationale for
        creating its central intelligence service.
Bureaucracies inevitably strive to advance their own interests, especially
        when they are less accountable to the public. Yet even though they
may
        inflate threats in order to pad budgets, it is hard to argue that
spying
        is no longer necessary. During the last decade, wars and civil
conflicts
        that threatened the interests of greater and lesser powers erupted
from
        the Persian Gulf and the Balkans to East Timor and the Democratic
Republic
        of the Congo. North Korea tested long-range missiles. Terrorists
bombed
        U.S. barracks and embassies in Saudi Arabia, Kenya, and Tanzania,
as well
        as buildings in New York City and Moscow. The Aum Shinrikyo cult in
Japan

        released sarin nerve gas into Tokyos subways. India and Pakistan
conducted
        surprise nuclear tests. And, lest we forget, Russia and the United
States
        remained (and remain) armed with enough nuclear warheads to
annihilate
        one another in a half-hour.
In a strategic landscape plagued by still greater uncertainties, the
        need to know not only endures but grows. Moreover, although
globalization
        has brought about a new set of favorable circumstances for nations in
        terms of trade, travel, and communications, it has also brought
greater
        exposure to foreign intrigue, against which intelligence can
provide a
        shield. New information asymmetries add to the seductive power of
spying:
        Whether on the battlefield or in trade negotiation sessions, the
disproportion
        of the benefits that accrue to those with superior intelligence and
information
        has grown. Given these circumstances, it should come as no surprise
that
        spying in some cases is actually increasing in intensity. In the
United
        States, wiretaps related to espionage and counterespionage (chiefly
against
        suspected terrorists and international drug dealers) shot up from 595
        in 1990 to 880 in 1999. In a 1994 white paper, the South African
government
        noted that its country was experiencing a dramatic increase in
foreign
        intelligence activities. And from Central Asia to the Baltic
States, the
        new nations clustered along the periphery of the former Soviet
Union have
        experienced a surge of spying by Russia, the United States, China,
and
        assorted other powers.
In Spying as in War, the Enemy of My Enemy

        Is My Friend
Not anymore. When the Cold War ended, the sense of threat on both sides
        diminished, and with it, the cohesion that had drawn allied secret
agencies
        into a web of cooperation. The Russian secret service currently has
minimal
        ties with the state security apparatus in most of the former Soviet
satellites.
        In fact, it significantly increased its own spy network in Poland,
Hungary,
        and the Czech Republic following their accession to NATO in March
1999.
     
Although the foreign-policy objectives of nations within the Western
        alliance were reasonably compatible during the Cold War, they were
never
        fully congruent and are less so today. In 1998, German
counterintelligence
        uncovered a CIA attempt to recruit a Bonn official for espionage, and
        the next year the Federal Republic expelled three CIA officers for
spying.
        In early 1999, Tokyo and Washington had a tiff over Japans plans to
develop
        its own spy satellite and enhance its intelligence capabilities.
Earlier
        this year, a French member of the European Parliament denounced an
eavesdropping
        operation run by the United States, the United Kingdom, Canada,
Australia,
        and New Zealand, known as echelon, as an Anglo-Saxon Protestant
conspiracy.
As shadowy figures operating outside the law or conventions of war, spies
        are in some ways the ultimate agents of national interest.
Intelligence
        cooperation between nations has therefore always been marked by a
sense
        of ambivalence. Consider the case of the European Union: Many
European analysts have touted the benefits of greater intelligence
cooperation
        in an era of falling budgets, exploding information, and growing
integration;
        indeed there has been an improvement in cooperation among Europeans
(and
        with the United States) in some areas, such as counterterrorism and
counternarcotics.
        Yet intelligence services are reluctant to support the idea of a
truly
        united European approach to intelligence sharing. Cooperation has
been
        even more halting among the member states of the United Nations,
which
        faces vexing disputes over secrecy and sovereignty issues. Barring
the dissolution of the current system of nation-states and the establishment
        of full-fledged global governance, intelligence-sharing relationships
        will remain significantly constrained by divergent policy
interests, the
        fear of turncoats inside an allys government, and the general need
for
        secrecy.
Spying on Economic Competitors Is Now Preeminent
Not really. When the European Parliament published its report on the
        echelon eavesdropping system last February, Frances justice
minister huffed

        that what had begun as a military system has been diverted to the
purposes
        of economic espionage and for keeping a watch on competitors. As
one of
        the most aggressive practitioners of economic spying, the French
could
        perhaps be forgiven their paranoia. But when it comes to the security
        agenda of most intelligence services, commerce continues to take a
back
        seat to direct threats to national survival. Governments rightly
remain
        more concerned about threats such as terrorism, drug smuggling, and
the
        spread of weapons of mass destruction.
Of course, the resources that some intelligence services devote to economic
        matters have been growing. In the United States, the proportion of
collection
        and analysis resources allocated to economic intelligence rose from
less
        than 10 to 40 percent in the immediate postCold War period. Of
special
        interest has been the monitoring of unfair trade practices. In
1994, U.S.
        intelligence learned that the French had tried to bribe Brazilian
officials
        in an attempt to win a $1.4 billion contract for Thomson, their
communications
        company; when the United States objected, Brazil awarded the contract
        to the American company, Raytheon. U.S. intelligence agencies have
also
        backed up diplomats in trade talks: During recent negotiations with
the
        Japanese government over automobile imports, the U.S. delegation
reportedly
        received agent reports and telephone taps that helped close the deal.
        The United States has so far refused to spy on private foreign
companies,
        but the roll call of countries so engaged is long. A 1996 survey by
the
        American Society for Industrial Security named China as the most
aggressive
        perpetrator of industrial espionage against U.S. companies,
followed by Canada, France, India, Japan, Germany, South Korea, Russia,
Taiwan, the
        United Kingdom, Israel, and Mexico. The United States, however,
overlooks
        its own self-imposed prohibition against commercial espionage if a
foreign
        business is state owned, as is sometimes the case in the
telecommunication

        and aerospace industries.
But the value of economic espionage is disputed. Open government agencies
        often have better information on global economic activities than
their
        clandestine cousins; so do any number of open sources, whether
multilateral
        institutions, think tanks, or leading newspapers and magazines. One
of the best economic intelligence networks is that of Japan, which relies
        overwhelmingly on bureaucrats at ministries, trade associations,
trading
        firms, and companies overseas. Virtually all of the economic data
obtained
        by Japan about the U.S. market supposedly comes from open sources.
Moreover, economic spying raises serious practical and ethical issues.
        Intelligence cannot be provided in fairness to one U.S. company
over another;
        yet widely distributing secrets risks the disclosure of sensitive
sources
        and methods. Since most major U.S. firms are multinational,
intelligence
        distributed to them cannot be expected to remain tidily within the
United
        States. And if the CIA were caught with its hands in a Toyota safe at
        midnight, would that risk be worth the likely setback in
U.S.-Japanese relations?
Technology Has Made Spying Easier
Yes, and harder, too. Intelligence has come a long way since the days
        when pigeon droppings served as a source of invisible ink. Even
during
        the Cold War, major powers resorted to surveillance technology that
now
        seems like something out of a Laurel and Hardy movie. Frantic to
learn
        more about Moscows military capabilities, the United States lofted
unmanned,
        camera-carrying balloons across Soviet airspace; most crashed
somewhere
        in the vast Russian expanse. In contrast, todays satellite cameras
can
        canvass the globe and penetrate the cover of clouds and darkness.
Moreover, the time required for the retrieval, development, and
dissemination of
        the photography has diminished from weeks to minutes.
Espionage agencies have invented a wide range of sensitive listening
        devices, some as small as a pinhead, others as large as a football
field.
        For the individual agent, secret codes have become more elaborate and
        almost impossible to break; methods of communication between spies
and
        their case officers have shifted from radio transmissions to
quick-burst
        electronic messages bounced off satellites; lock picking and letter
opening
        are now a science; and agent disguises rival those of Hollywood.
Technology,
        though, cuts both ways. As countries have grown more sophisticated
in crafting spy machines for use against adversaries, so have adversaries
        become more clever in evading these prying eyes and ears. During
the Indian
        nuclear tests in 1999 that took much of the world by surprise, the
Indians
        knew exactly when the spy cameras would be passing over the testing
facility near Pokharan in the Rajasthan Desert and, in synchrony with the
satellite
        orbits (every three days), scientists camouflaged their preparations.
Advances in the commercial surveillance industry have further reduced
        the information edge once enjoyed by some governments. In 1999, the
U.S.
        company Space Imaging launched a surveillance satellite (named Ikonos
        II) that yields photographs almost as detailed as the intelligence
communitys imagery for sale to anyone with cash or a credit card. Within a
few years,
        Iraq or any other nation can have their own satellites or
commercially
        available substitutes (the rent-a-satellite option). Accessing
communications

        signals has also become more difficult. Existing
signals-intelligence
        satellites are designed to snatch analog microwave communications
from
        out of the air. The world, though, is rapidly switching to digital
cellphones
        and underground (and undersea) fiber-optic modes of transmission that
        are much harder to intercept, leaving nations with a sky full of
increasingly
        irrelevant listening posts.
Furthermore, even poor nations and terrorist groups can encrypt messages
        with complicated mathematical, computer-based technologies that
stymie
        even the most experienced cryptologists. Under pressure from the U.S.
        software industry, the Clinton administration recently decided to
allow
        the export of advanced encryption software, making life more
difficult
        for the Federal Bureau of Investigation (FBI) and the National
Security
        Agency (NSA, the United States code-breaking organization).
Similarly bowing to sales opportunities for their private firms, the
European Union
        is expected to lift its barriers to the export of strong encryption
software.
        Rest assured, however, that government spy masters will not respond
by
        closing up shop, but by pouring more resources into the development
of
        advanced intelligence collection, code-breaking, and counterdeception
        methods.
Open Sources Provide Better Information Than
        Spies
Increasingly, but not always. During the Cold War, about 85 percent of
        the information contained in espionage reports came from the public
domain.
        Today, in light of the greater openness of governments around the
world,
        that figure is more like 90 to 95 percent. Within this figure,
though,
        are not just well-known newspapers and magazines but gray sources
that
        are not secret but are nonetheless hard to find (for example, remarks
        by Libyan leader Col. Muammar el-Qaddafi at a political rally in
Tripoli).
        The acquisition of such open information may require a covert agent
in
        just the right place.
Sometimes information that is openly available proves insufficient to
        answer an intelligence question. During its investigation into U.S.
intelligence
        activities in 1995, the Aspin-Brown Commission (with members
appointed
        by the president and Congress) explored the relative value of open
and clandestine reporting by looking at both sources for a few days (August

        3-7) with respect to events unfolding in Burundi. The commission
asked
        the firm Open Source Solutions to explore the open side, drawing on
the
        resources of such private information companies as Janes
Information Group, Lexis-Nexis, and Oxford Analytica. The open sources
performed well, providing
        a brief, accurate history of the tribal conflict between the Hutu and
        Tutsi factions, and detailed order-of-battle statistics and
descriptions
        of weapons in the Burundian inventory. However, contrary to some
reports,
        the U.S. intelligence community shined as well. The CIA generated
up-to-date
        information on the growing political polarization in the country
and the
        high likelihood that violence would soon erupt. The CIA also
presented
        comprehensive data on regional ethnic population patterns,
illustrated
        with impressive four-color maps, along with facts on Burundis
acquisition
        of arms in the international marketplace (which led to U.S.
diplomatic
        pressure to halt the shipments). The information provided by Janes
Information
        Group on the characteristics of weapons in Burundi proved richer than
        the CIAs profiles, but the CIA offered better insights into the
evolving
        humanitarian crisis in Burundi, the attitudes of leaders in
surrounding
        nations, and the need for the United States to begin preparing for
the evacuation of U.S. and European nationals. The open and clandestine
sources
        each revealed pieces of the Burundian jigsaw puzzle; when joined
together,
        the picture became much clearer.
Intelligence agencies perform especially well on topics that open reporting
        sources have trouble tracking, notably the precise whereabouts of
foreign
        military forces, the activities of terrorist groups, the machinations
        of international criminals, and events and personalities in closed
societies.
        Open reporting is often better for the long-term interpretation of
political
        events. A leading newspaper, for example, may have a seasoned
reporter
        assigned to a foreign capital for years, perhaps even decades,
while intelligence
        officers typically undergo rapid turnover as they move from capital
to
        capital during their careers.
China and Japan are especially proficient at cultivating open sources
        of information; so are Israel, the Netherlands, Singapore, and
Taiwan.
        And according to Robert D. Steele, the chief executive officer of
Open
        Source Solutions, the Nordics are sensational at open source
exploitation.
        Sweden, for example, has pioneered new methods of coordinating
open-source
        collection among all its government agencies and tapping the
resources
        of the Internet. Many Western nations, though, underestimate the
value
        of such sources. After all, an ordinary city map purchased at a
Belgrade
        kiosk in 1999 could have saved the CIA from the embarrassing
blunder of
        mistakenly targeting the Chinese embassy in Serbia. The U.S. National
        Foreign Intelligence Board found that U.S. intelligence agencies
devote
        only 1 percent of their total budget to the acquisition of open
source
        material, despite the importance of information from the public
domain
        in the preparation of intelligence reports.
Open sources, though, are no panacea. A 1996 CIA study of the Internet
        estimated, for example, that only 1 percent of the millions of
Internet
        pages contained content useful for intelligence purposes. As Ray
Cline,
        a former CIA deputy director of intelligence, once observed,
Espionage
        is now the guided search for the missing links of information that
other
        sources do not reveal. The effective intelligence analyst starts
trying
        to answer questions with an exhaustive examination of open sourcesa
much

        less expensive method of detection. Too often, however, analysts
set aside
        open sources in favor of the more beguiling and abundant (if
frequently
        less reliable) secret information that pours in from agents and spy
machinesincluding,
        in the United States, some 400 photographs a day from surveillance
satellites.
     
Machines Provide Better Intelligence Than Humans
Dont say goodbye to James Bond just yet. Technology is important, but
        agents have had their moments of glory, too. The United States best
agent
        during the Cold War, the Soviet military intelligence officer Col.
Oleg
        Penkovsky, provided the CIA with information on the Kremlins
military policies and weapons, including drawings of missile sites inside
Russia.
        In October 1962, this information allowed CIA imagery analysts to
interpret
        telltale signs in U-2 photographs that revealed comparable sites
being
        constructed in Cuba. Further, the CIA only initiated U-2 flights over
        Cuba in the first place because its agents reported unusual
activity on
        the island, including the sighting of what appeared to be missile
parts
        unloaded from Soviet ships. Of the 3,500 CIA-agent reports
preceding the missile crisis, only eight yielded accurate information about
the presence
        of missiles; nevertheless, those eight reports proved invaluable as
triggers
        for the U-2 reconnaissance flights.
But that was almost 40 years ago, before the age of advanced surveillance
        satellites and other major innovations in technical espionage. How
useful
        are agents today? In those nations that can afford costly spy
machines,
        funding for technical intelligence dwarfs that expended on agents
(the
        spending ratio in the United States is roughly 7 to 1). But spy
satellites
        are unable to see through roofs and into the inner councils of
foreign
        governments where decisions are made. It takes a human agent for
that.
     
The need for reliable agents is continual. Although the attempted rescue
        of American hostages held in Tehran during the Carter
administration failed,
        its planners had good reason to think it might succeed, in part
because
        agents in Tehran had been able to provide information on exactly
where
        each hostage was being held inside the U.S. embassy. During the
United
        States disastrous intervention in Somalia in 1993, the Pentagon
learned
        that its powerful Black Hawk attack helicopters were worthless
without spies on the ground who could point them toward the right targets
in Mogadishus
        twisting maze of dirt streets and alleyways. This year, U.N. blue
helmet
        troops captured Sierra Leonean rebel leader Foday Sankoh, thanks to a
        tip from an indigenous agent reporting to U.S. forces among the
peacekeepers.
        As transparent as machines have made some parts of the globe, much
still
        remains opaque. In fact, nations like North Korea that pose the
greatest
        threat to world peace are generally the least transparent.
Spying and Democracy Are Fundamentally Incompatible
On the contrary. Human rights activists and other champions of democracy
        have understandably balked at the excesses that have occasionally
characterized
        intelligence activities, whether assassination plots, coups, bribery,
        the spreading of propaganda, or the lack of accountability. Yet
during
        the Cold War, the Western intelligence services, working together,
provided
        an indispensable early-warning system against threats to
democracies from
        the Communist world. Intelligence services continue to provide this
first
        line of defense, including efforts to uncover the use of chemical
and biological warfare before the sarin gas, anthrax particles, or other
horrendous
        substances are released among mass civilian populations.
Spying has advanced other laudable goals, from battling international

        drug dealers to uncovering renegades who attempt to violate U.N.
sanctions.
        During the recent Balkan wars, spy satellites spotted mass graves
freshly
        dug near the villages of Pusto Selo and Izbica in Kosovo, allowing
U.N. investigators to search for additional evidence of atrocities. U.S.
secret
        agencies have been involved in environmental activities, including
the
        use of satellite cameras to inspect crop blight as well as track
the spillage
        of radioactive materials from submarine accidents and leaky nuclear
storage
        sites. Intelligence agencies have been drawn into the task of
global disease
        surveillance, too, both by doing long-range analyses and ferreting
out
        facts beyond the ken of the Centers for Disease Control and the World
        Health Organizationas when the Chinese attempted in 1996 to cover
up an
        aids-contaminated blood product (serum albumin) produced by a
military-run
        factory.
Spying, then, can be a vital support to democracy; but it can also have
        just the opposite effect if a regime fails to maintain a system of
accountability
        over its secret agencies. Until recently, the intelligence services
of
        every nation enjoyed immunity from close review by outside overseers:
        The philosophy was that, by necessity, secret agencies had to be
divorced
        from society. While most intelligence services throughout the world
continue
        to operate free from parliamentary supervision, in 1976 the United
States
        adopted a system of legislative oversight for its intelligence
activitiesan approach stemming from revelations that U.S. intelligence
agencies were
        spying on their own citizens and subsequent discoveries that the
CIA had
        engaged in assassination plots overseas. A few other countries,
most notably
        Canada and Australia, have also established serious parliamentary
checks
        on intelligence activities. Ultimately, in a democracy, the viability
        of an effective secret service relies on public respect. Oversight by
        elected representatives provides an important link between the people
        and the hidden side of government and helps to guard against the
misuse
        of secret power.
Perhaps some day spying will be as outdated as dueling. But democracies
        will continue to tolerate espionage as an instrument to keep
themselves
        informed about the intentions and capabilities of unpredictable
nations
        with a penchant for international misbehavior: the North Koreas and
Iraqs
        of the world. And even against fellow democracies, most citizens will
        accept spying as a necessary evil, for the simple reason that
democracies
        still compete against one another for political and economic
opportunities.
        A worthy goal for the future is to seek a reduction in harmful
competition
        and spying between democracies, so they can direct their intelligence
        capabilities toward providing a common defense against the worlds
more
        troublesome regimes, along with the transnational threats of weapons,
        drugs, terrorism, crime, environmental pollution, and infectious
diseases
        that continue to spread and endanger everyone.
WANT TO KNOW MORE?
A flood tide of books and articles on intelligence has appeared
              over the past few years. A good place to begin is Intelligence:
              From Secrets to Policy (Washington: CQ Press, 2000), written by
              Mark Lowenthal, a former State Department intelligence official
              who also served as staff director of the Intelligence Committee
              in the U.S. House of Representatives. New and insightful,
too, are
              more specialized studies by authors who have also worked inside
              the intelligence community: Bruce D. Berkowitz and Allen E.
Goodmans
              Best Truth: Intelligence in the Information Age (New Haven:
Yale University Press, 2000); Robert David Steeles On Intelligence (Oakton:
              OSS Academy, 2000); Arthur S. Hulnicks Fixing the Spy Machine
(Westport:
              Praeger, 1999); and Gregory F. Trevertons Reshaping National
Intelligence
              for an Age of Information (Cambridge: Cambridge University
Press,
              2000). For historical perspectives, see Rhodri
Jeffreys-Joness The
              CIA & American Democracy, 2nd ed. (New Haven: Yale University
              Press, 1996) and Loch K. Johnsons Secret Agencies (New Haven:
Yale University Press, 1996).
Michael Herman, a former British intelligence officer, has written
              a thorough study, Intelligence Power in Peace and War
(Cambridge:
              Cambridge University Press, 1996), that looks at the state of
espionage
              in a number of nations, with a special focus on Great
Britain. A
              good general account of how various intelligence agencies
have adapted
              to the postCold War world can be found in British journalist
James
              Adamss The New Spies (London: Hutchison, 1994). For information
              on the KGB, see the memoir of its former chief of
counterintelligence,
              Oleg Kalugin: The First Directorate (New York: St. Martins,
1994).
Those interested in technical intelligence should turn to William
              E. Burrowss Deep Black: Space Espionage and National Security
(New
              York: Random House, 1986); and to two books by Jeffrey T.
Richelson:
              Americas Secret Eyes in Space: The U.S. KEYHOLE Spy Satellite
Program
              (New York: Harper & Row, 1990) and Americas Space Sentinels
              (Lawrence: University Press of Kansas, 1999).
The premier scholarly quarterlies that cover intelligence are Intelligence
              and National Security and International Intelligence and
Counterintelligence.
              The American Intelligence Journal, sponsored by the National
Military
              Intelligence Association, presents up-to-date views by
leading intelligence officials; and Studies in Intelligence, published in
both classified
              and unclassified forms by the CIAs Center for the Study of
Intelligence,
              offers mainly in-house studies. For useful reporting on
international
              intelligence issues, readers can consult the monthly Janes
Intelligence
              Review.
For links to relevant Web sites, as well as a comprehensive index
              of related Foreign Policy articles, access
www.foreignpolicy.com.
            
 
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on the Indonesia Publications homepage: http://www.indopubs.com
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