Intercepted conversations imply that the former President was anxious to be kept informed over a probe into his alleged funding by the Libyan dictator

Nicolas Sarkozy badgered the head of the French security service for information on the progress of inquiries into his alleged funding by the late Libyan dictator Muammar Gaddafi, it has emerged.

Judges investigating the alleged illegal financing of the former President’s 2007 election campaign tapped two phone calls by Mr Sarkozy to the head of the French equivalent of MI5, Le Monde has reported.

As a result, Patrick Calvar, head of the Direction Centrale du Renseignement Intérieur (DCRI) was questioned as a “witness” in the case by the two judge last Friday, according to Le Monde?

The approaches made by Mr Sarkozy, and similar calls by the head of his private office, are not illegal. They imply, however, that the former President was anxious to be kept informed about an investigation that he has publicly dismissed as “absurd” and “infamous”.

The revelations also give weight to previous allegations that Mr Sarkozy has used his contacts as a former head of state in relation to a tangle of judicial investigations into his alleged financial misconduct.

Mr Sarkozy and friends will, on the other hand, point to the latest development as further evidence of what he claims is a “Stasi-like” persecution by the Socialist administration of President François Hollande. Last month it was revealed that the judges had bugged phone conversations between Mr Sarkozy and his lawyer. It now emerges that police officers working with the judges were also listening in two calls – in June last year and in January this year – between Mr Sarkozy and the head of the French internal security service.

Inquiries by investigating magistrates in France are entirely independent of the government of the day. Nonetheless, Mr Sarkozy alleged in a long newspaper article last month that the tapping of his phone had been inspired by the government and that his political opponents had been reading transcripts of his intimate, personal conversations.

Mr Sarkozy has been accused by one of Mr Gaddafi’s sons and several ex-Gaddafi aides of taking either €20m or €50m from the late Libyan dictator to fund his successful 2007 presidential campaign. No clear evidence to back the claims has emerged. One document leaked to the French press proved to be a forgery.

Nonetheless, according to Le Monde, Mr Sarkozy personally phoned the head of the DCRI, Mr Calvar, to ask whether the security service was helping in the investigations. In one call, according to the leak, he was especially keen to know whether the DCRI had questioned Mr Gaddafi’s personal interpreter, Moftah Missouri.

In June last year – just before the first of Mr Sarkozy’s calls – Mr Missouri told a French TV documentary that Mr Gaddafi had informed him “verbally” of a €20m payment to the future French president.

According to Le Monde, the DCRI head, Mr Calvar, refused to tell Mr Sarkozy whether his agency was investigating the Libyan allegations or not. He also refused to comment when questioned by the judges last Friday, saying DCRI business was a “state defence secret”.

JOHN LICHFIELD Author Biography PARIS Thursday 03 April 2014

Find this story at 3 April 2014

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PARIS — The scandal, intrigue and occasional vaudeville of Nicolas Sarkozy’s five years in the presidency made for great headlines, and French journalists once fretted that politics under his successor, François Hollande, who pledged to be a “normal” president, might prove unbearably dull.

But that fear overlooked the court cases, judicial investigations and general whiff of malfeasance that would trail Mr. Sarkozy and his lieutenants out of the corridors of power and, it now appears, entangle even Mr. Hollande.

The current president’s tumultuous love life has made for a bit of public drama in recent months, with reports that he had a mistress and slipped off to trysts via motor scooter. But the French no longer seem much to care, if they ever did, and a knot of holdover scandals from the Sarkozy era are now making for the best reading. Through a bizarre sequence of government missteps, by the weekend they had become as much a crisis for Mr. Hollande as for Mr. Sarkozy.

The almost universal expectation that Mr. Sarkozy will make a bid for the presidency in 2017 has only heightened the drama.

Justice Minister Christiane Taubira with wiretapping memos that suggested she was better informed than she had claimed. Credit Philippe Wojazer/Reuters
Chief among the affairs is the allegation, now under investigation by two special magistrates, that Mr. Sarkozy’s 2007 presidential campaign received as much as 50 million euros, or about $70 million, in illegal funds from Col. Muammar el-Qaddafi of Libya.

This month, the newspaper Le Monde revealed that investigators had tapped the phones of Mr. Sarkozy, two of his former ministers and his lawyer, Thierry Herzog, beginning last year. The practice is not illegal, though lawyers have called the surveillance of Mr. Herzog’s phone a possible violation of attorney-client privilege. Mr. Sarkozy appears to be the first former French president to have his private conversations monitored by investigators.

He has denied the claims of Libyan financing, made by former loyalists to Colonel Qaddafi and one of his sons, and says they are meant to damage him in revenge for the international military intervention he helped orchestrate in Libya in 2011 that led to Colonel Qaddafi’s ouster and death.

It is unclear if the phone-tapping did anything to corroborate the claims, but it has led to unrelated suspicions involving Mr. Sarkozy and a well-placed magistrate, Gilbert Azibert, who is believed to have served as his informer in the courts.

In their recorded conversations, Le Monde reported, Mr. Sarkozy and Mr. Herzog discussed an investigation into whether Mr. Sarkozy’s 2007 campaign received illegal funding from Liliane Bettencourt, the 91-year-old L’Oréal heiress who is France’s richest woman. Some of the evidence in that case is being used in yet another case implicating Mr. Sarkozy, this one involving a $550 million state payout in 2008 to Bernard Tapie, a colorful businessman with a checkered past.

Mr. Sarkozy had been kept quietly informed about a court’s plans for the evidence by Mr. Azibert, according to Le Monde and government documents. Mr. Azibert, who is nearing retirement, is said to have intimated that he might like some assistance in obtaining a post in the seaside principality of Monaco, and Mr. Sarkozy said he would help, in exchange for information.

An investigation into breach of judicial secrecy and influence-peddling has been opened, and the homes and offices of Mr. Azibert and Mr. Sarkozy’s lawyer have been searched. Mr. Azibert was recently hospitalized, and there is speculation he might have attempted suicide.

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Inauspicious as this may seem for Mr. Sarkozy and the right, it is the center-left government of Mr. Hollande that is now on the defensive. After first insisting that they had learned of the phone-tapping only through the news media, government ministers including the justice minister, Christiane Taubira, admitted they were informed as early as last month.

The French judiciary is not entirely independent of the executive branch, and it is not uncommon for the minister of justice to be apprised of judicial investigations, especially if celebrities or public officials are involved. But the government, and Ms. Taubira in particular, were not altogether forthcoming about their knowledge of the case. Their political opponents, who presumably should be on the defensive, have pounced.

Jean-François Copé, leader of the Union for a Popular Movement, Mr. Sarkozy’s party, has called for Ms. Taubira’s resignation.

Ms. Taubira has refused, and has insisted she did not lie. At a news conference last week, she said that she had indeed been told about the tapping last month, but that she had been given no information about what it revealed. But the internal papers she strangely chose to flash before reporters to prove her point were captured in news photographs, and closer observation of the documents suggests Ms. Taubira was far better informed than she claimed.

Mr. Copé and his party renewed their attacks. But those sallies have been widely viewed as a diversionary tactic, considering that Mr. Copé is embroiled in a scandal of his own. According to the newsmagazine Le Point, Mr. Copé gave a sweetheart contract to a company run by two friends to organize rallies during Mr. Sarkozy’s unsuccessful 2012 campaign. The party spent $11 million with the firm, more than one-quarter of its entire declared campaign spending, paying double the going rate for several of the services provided, Le Point reported last month.

Because French political parties depend heavily on public funding, much of that money would have come from taxpayers.

Mr. Copé declared himself a victim of hateful press and suggested the report was concocted to hurt his party before municipal elections later this month. He did not, however, deny it. A judicial investigation into the party’s campaign spending was opened this month.

In still another embarrassment for Mr. Sarkozy and the right, secret recordings made by a close aide to Mr. Sarkozy during his presidency appeared recently on a news website, Atlantico, and in transcribed form in an investigative newspaper, Le Canard Enchaîné.

The recordings do not seem to reveal anything illegal, but Mr. Sarkozy and his wife, the singer and model Carla Bruni-Sarkozy, can be heard discussing money — she paid the bills during his presidency, it seems — and Mr. Sarkozy’s advisers can be heard crudely insulting government ministers, as well as Ms. Bruni-Sarkozy.

It is unclear how the recordings were leaked. The aide who recorded the conversations, Patrick Buisson, a shadowy political operative with deep ties to the far right, initially said he had made the recordings for his own records. His lawyer later claimed the recorder had mysteriously switched on, repeatedly, unbeknown to Mr. Buisson.

Claiming a breach of his privacy rights, Mr. Sarkozy on Friday obtained an injunction requiring that the recordings be removed from the website and that Mr. Buisson pay him $14,000 in damages.

“Many French doubt, already, political officials’ sense of the public interest,” Le Monde wrote in a front-page editorial last week castigating the country’s political class. “These new developments can only reinforce their mistrust and disgust. In one manner or another, majority and opposition will pay the price.”

By SCOTT SAYAREMARCH 15, 2014

Find this story at 15 March 2014

© 2014 The New York Times Company

Gaddafi son Saif al-Islam threatens to publish details of bank transfers to punish French PM for backing Libyan rebels

Muammar Gaddafi’s son has claimed that Libya helped finance Nicolas Sarkozy’s successful election campaign in 2007, and demanded that the French president return the money to “the Libyan people”.

In an interview with the Euronews TV channel, Saif al-Islam Gaddafi said Libya had details of bank transfers and was ready to make them public in a move designed to punish Sarkozy for throwing his weight behind opposition forces.

Last week, the Libyan government threatened to reveal a “grave secret” that would bring down Sarkozy, with Saif al-Islam calling him “a clown”.

The regime is furious at Sarkozy’s efforts to galvanise international action to impose a “no-fly zone” that would prevent Gaddafi from using air power against rebels based in Benghazi.

Asked what he felt about the French president’s so far unsuccessful efforts to muster support for military intervention, Saif said: “Sarkozy must first give back the money he took from Libya to finance his electoral campaign. We funded it. We have all the details and are ready to reveal everything. The first thing we want this clown to do is to give the money back to the Libyan people. He was given the assistance so he could help them, but he has disappointed us. Give us back our money.”

Libya has yet to release any incriminating evidence but officials hinted last night that they were preparing to do so.

A spokeswoman for the Elysée Palace told the Guardian she had no information or comment about the claim. But Le Monde later quoted a spokesman as saying: “We deny it, quite evidently.”

Libyan sources have separately told the Guardian substantial funds were paid into accounts to support Sarkozy’s presidential campaign in 2007.

Well-placed sources in Tripoli made clear that the leak of this information was in retaliation for France’s leading role in the campaign to impose a no-fly zone and for its unique recognition of the rebel Libyan National Council. “Sarkozy is playing dirty, so we are playing dirty, too,” said a senior Libyan source.

The Guardian has been unable to confirm the Libyan claims independently.

French law places strict limits on party donations to candidates. Last year, Sarkozy was hit by a political scandal involving alleged illegal donations to his party funds by France’s richest woman, Liliane Bettencourt.

Eyebrows were raised when Gaddafi visited Paris in late 2007 and was permitted to pitch his trademark bedouin tent in the gardens of the Hotel Marigny, the 19th-century mansion close to the Elysée Palace, which hosts visiting VIPs. That triggered a storm of adverse comment about the warmth of his reception by Sarkozy on international human rights day.

Ian Black in Tripoli and Kim Willsher in Paris
The Guardian, Wednesday 16 March 2011 12.01 GMT

Find this story at 16 March 2014

© 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved.

(Reuters) – On a dusty training ground in Niger, U.S. Special Forces teach local troops to deal with suspects who resist arrest. “Speed, aggression, surprise!” an instructor barks as two Nigeriens wrestle a U.S. adviser out of a car.

The drill in the border town of Diffa is part of Operation Flintlock, a counter-terrorism exercise for nations on the Sahara’s southern flanks that the United States organizes each year. Washington’s aim is to tackle Islamist militants in the Sahel region while keeping its military presence in Africa light.

A growing number of European nations taking part shows their increasing concern about security in West Africa. Central to the international effort is a blossoming relationship between the United States and France, the former colonial power and traditional “policeman” of the turbulent region.

When Paris deployed 4,000 troops to fight Islamist militants in neighboring Mali last year, the U.S. military lent a hand by airlifting French soldiers and equipment, providing intelligence and training African forces to join the operation.

French troops are stretched by hunting the militants in Mali and tackling religious violence in Central African Republic, so only a handful participated in Flintlock. Nevertheless, they welcomed their new partnership with Washington.

“The Americans want to get involved in Africa. That’s good for us. We know that with the Americans it will be more efficient,” said a French Special Forces officer, who asked not to be named. “We use American logistics – that’s what we are missing. On the other hand, we provide the local knowledge.”

The United States fast-tracked the sale of 12 Reaper drones to France last year, the first two of which started operating in Niger in January alongside U.S. drones already there.

In a reminder of the partnership, a drone quietly taxied past troops and dignitaries at Flintlock’s closing ceremony in the capital of Niamey before taking off to scour the Sahara.

U.S. FACING BUDGET CUTS

Military experts say direct U.S. military action in Africa is limited to short raids on “high-value” targets in places such as Somalia and Libya, while French troops take on longer, bigger operations.

J. Peter Pham, director of the Africa Center at the U.S.-based Atlantic Council, said this arrangement suited U.S. military planners who face budget cuts and a diminished American appetite for combat after conflicts in Iraq and Afghanistan.

However, he warned that the French military was at the limit of its ability to strike militants hard. “If the French are not able to provide that blunt instrument, is the U.S. willing to do so?”

Nine years after the Flintlock exercises began, the enemy has evolved from a group of Algerian-dominated fighters focused on northern Mali and now threatens nations across the Sahara and the arid Sahel belt to the south.

For most of 2012, militants occupied northern Mali, a desert zone the size of France. Scattered by a French offensive last year, many are believed to be regrouping in southern Libya.

Hundreds of people are being killed every month in clashes with Boko Haram militants in northern Nigeria. Many in Niger fear this conflict could spill over the border and the government in Niamey has appealed for more military support.

“Instability in neighboring states has given everybody a new incentive,” General James Linder, commander of U.S. Special Operations Command Africa, told Reuters while visiting Niger

This year’s three-week Flintlock exercise – involving over 1,000 troops from 18 nations – was the biggest yet and runs alongside more permanent training by U.S. Special Forces in Niger, Mauritania, Senegal and Chad.

Training in Diffa, only a few kilometers from where Boko Haram militants are fighting the Nigerian army across the border, ranged from basic patrolling skills and setting up checkpoints to sharing intelligence and providing medical care.

In a region where armies often lack basics such as ammunition for target practice and fuel for vehicles, the quality and tempo of the U.S.-sponsored exercise eclipses the training most soldiers in the region receive in a year.

Colonel Mounkaila Sofiani, the local Niger commander, said Flintlock and other U.S. initiatives helped his country to tackle threats from the west, north and south better. “Little by little people are being trained,” he said. “Once there are enough, they’ll form the spine of a reliable force.”

Training is meant to build up coordination between armies but Sofiani said just finding radio equipment compatible between nations is difficult. In the field, officers exchange mobile phone numbers to bypass blockages in official channels.

A lack of trust between governments also hinders responses. At a recent meeting of intelligence chiefs, the Nigerien and Libyan representatives argued over the risk of instability spreading from Libya’s lawless south, a diplomat told Reuters.

Coups in Mauritania, Niger and Mali since the Flintlock exercises began also halted cooperation until civilian rule was restored. Mali’s 2012 coup, led by a captain with U.S. training, opened the door to the Islamist takeover of the north, prompting questions about what the years of exercises had achieved.

Pham said better military capabilities had not been matched by improvements in governance, citing a failure by Mali to tackle corruption. Chad’s military, however, has won praise for leading the charge alongside French troops in flushing out the militants from Mali’s desolate northern mountains.

U.S. officials stress the exercise is African-led and are wary about people reading too much into U.S. troops being on the ground near African conflicts. But the show of foreign support is popular in Diffa.

“It sends a message to Boko Haram and others,” said Inoussa Saouna, the central government’s representative in Diffa. “Before Mali, we thought terrorism was a problem for whites but now we’ve experienced it ourselves.”

BY DAVID LEWIS
DIFFA, Niger Thu Mar 13, 2014 3:17am EDT
(Editing by Daniel Flynn and David Stamp)

Find this story at 13 March 2014

Copyright Thomson Reuters

Orange has been cooperating allegedly illegally for years with France’s main intelligence agency (the DGSE). According to a newly found report by Edward Snowden and an investigation by Le Monde, the DGSE was given access to all of Orange’s data (not just metadata).

Orange is the leading telecom company in France with more than 26 million clients. These clients have communicated with tens of millions of non-Orange clients. Nearly everyone in France is concerned by today’s revelation. No regulating agency has a say in this special relationship between France’s intelligence agencies and Orange. Data is shared with allies, such as the GCHQ in the U.K.

While the state still owns 27 percent of Orange, Orange has operated as a private company for years. Yet, when it comes to data collecting, it still works as if it was a state-owned company.

Orange employees help the DGSE create and develop new tools to collect and analyze data. Contrarily to PRISM, it’s not just an agreement between the government and big Internet companies, it’s an implicit “joint venture” that has been going on for around 30 years.

Both the government and the DGSE had no comment on the allegations. Orange CEO Stéphane Richard said that he wasn’t aware of what the DGSE was doing. He just granted access to Orange for employees of the DGSE in order to comply with the law. The three other main telecom companies denied the existence of similar programs with them.

Last July, Le Monde discovered that France has a PRISM-like program which collects thousands of trillions of metadata elements, collecting data on call history, recipient and sizes of text message, email subject etc. The program targets phone communications, emails and data from Internet giants, such as Google, Facebook, Apple, Microsoft and Yahoo.

The public outcry has been very moderated so far. These popular Internet services are still dominant. In other words, in France, convenience comes first, privacy second.

Update: An Orange spokesperson sent the following statement.

As is the case for all operators, Orange has relations with the French state’s services that are responsible for national security. This relationship takes place within a strict legal framework, under the responsibility of the state and appropriate legal control by judges.

Posted Mar 20, 2014 by Romain Dillet (@romaindillet)

Find this story at 20 March 2014

© 2013-2014 AOL Inc.

Another day, another round of troubling surveillance news. In a twist, though, today’s nugget has less to do with the US or the NSA but rather, France’s central intelligence agency, the DGSE. According to a leak by Edward Snowden to the French paper Le Monde, Orange, the country’s leading telecom, has been willingly sharing all of its call data with the agency. And according to the leaked document — originally belonging to the UK intelligence agency GCHQ — the French government’s records don’t just include metadata, but all the information Orange has on file. As you might expect, the DGSE then shares this information with other countries, including, of course, the UK, which had this incriminating document in the first place.

In a way, this isn’t surprising: the French government owns a 27 percent stake in the company. But until now, Orange has ostensibly been operating as a private firm. What’s more, the leaked document would suggest that the DGSE’s relationship with Orange has been cooperative, with Orange employees creating new tools to collect and interpret the data. If true, then, this arrangement would go beyond the DGSE merely requesting specific cell phone records and getting them. For now, both the French government and the DGSE have declined to comment, according to TechCrunch, while Orange CEO Stéphane Richard told LeMonde that he isn’t aware of what the DGSE is doing, but that Orange has granted access to the DGSE to comply with the law.

BY DANA WOLLMAN @DANAWOLLMAN MARCH 20TH 2014, AT 3:29:00 PM ET 16

Find this story at 20 March 2014

© 2014 AOL Inc.

Selon un document auquel “Le Monde” eu accès, l’opérateur historique France Télécom-Orange est un acteur essentiel du renseignement français.
On apprend souvent davantage de choses sur soi par des gens qui n’appartiennent pas à votre famille. Les Britanniques, un peu malgré eux, viennent de nous éclairer sur les liens hautement confidentiels qui existent entre les services secrets français, la Direction générale de la sécurité extérieure (DGSE) et l’opérateur historique de télécommunication France Télécom, qui a pris le nom d’Orange en février 2012.
Selon un document interne des services secrets techniques britanniques (GCHQ), l’équivalent de l’Agence nationale de sécurité (NSA) américaine, la DGSE entretient une coopération étroite avec « un opérateur de télécommunication français ». L’ancienneté de leurs liens, la description des savoir-faire spécifiques de l’entreprise ainsi que l’enquête du Monde permettent de conclure qu’il s’agit bien de France Télécom-Orange.

Lire les autres éléments de l’enquête Les services secrets britanniques ont accès aux données des clients français d’Orange

Lire les autres éléments de l’enquête Les X-Télécoms, maîtres d’œuvre du renseignement

Lire les autres éléments de l’enquête Surveillance : « Les opérateurs n’ont pas les moyens de résister aux Etats »

Selon le GCHQ, la DGSE et l’opérateur historique français travaillent ensemble pour améliorer les capacités nationales d’interception sur les réseaux de communication et collaborent pour casser les cryptages de données qui circulent dans les réseaux. France Télécom est un acteur important du système de surveillance en France.

COLLECTE DE DONNÉES LIBRE DE TOUT CONTRÔLE

Cette note, extraite des archives de la NSA par son ex-consultant Edward Snowden, assure que la relation entre la DGSE et l’opérateur français constitue un atout majeur par rapport à ses homologues occidentaux. L’une des forces de la DGSE résiderait dans le fait qu’elle ne se contente pas des autorisations accordées par le législateur pour accéder aux données des clients de France Télécom-Orange. Elle dispose surtout, à l’insu de tout contrôle, d’un accès libre et total à ses réseaux et aux flux de données qui y transitent.

Cette collecte libre de tout contrôle, par le biais de l’opérateur français, portant sur des données massives, concerne aussi bien des Français que des étrangers. Elle est utilisée par la DGSE, qui la met à la disposition de l’ensemble des agences de renseignement françaises au titre de la mutualisation du renseignement technique et de sa base de données. Ces données sont également partagées avec des alliés étrangers comme le GCHQ. Enfin, l’opérateur français développe, en partenariat avec la DGSE, des recherches en cryptologie.

Au plus haut niveau de l’Etat, en France, on se refuse à tout commentaire, mais on indique au Monde que, si la puissance publique est devenue minoritaire (27 %) au sein du capital de France Télécom, le plus ancien opérateur français reste considéré comme « un délégataire de service public ». Le savoir-faire de l’entreprise, qui fut en premier lieu une administration, contribue, de manière essentielle, « aujourd’hui comme hier », à la sécurité du territoire et à l’autonomie de décision des dirigeants français.

« Le rapport entre France Télécom et la DGSE n’est pas de même nature que celui révélé dans le programme Prism de la NSA, qui a des liens contractuels avec les géants d’Internet, explique un ancien chef de service de renseignement français. En France, c’est consubstantiel. » Il n’existe pas de formalisation de cette coopération entre la DGSE et France Télécom-Orange. Elle est portée par des personnes habilitées secret-défense, au sein de l’entreprise, et pérennisée, depuis au moins trente ans, par des ingénieurs, qui font la navette entre les deux institutions.

« USAGE INTERNE ET NON OFFICIEL »

Au quotidien, dans l’entreprise, ce lien est géré par un très petit nombre de personnes au sein de trois services. La direction des réseaux, en premier lieu, gère, notamment, les stations dites « d’atterrissement », où accostent les câbles sous-marins France Télécom-Orange touchant la France et par lesquels transitent les flux massifs de données collectées. Un tri préalable peut aisément être réalisé en fonction des pays et des régions d’origine, puis tout est stocké dans des locaux de la DGSE.

« Le transit massif des données est stocké pour un usage interne et non officiel, détaille un cadre attaché à la direction des réseaux. Mais le point névralgique, c’est l’accès au fournisseur d’accès, comme ça, vous croisez la circulation de la donnée et l’identité de ceux qui l’échangent. C’est pour cette raison que la DGSE est en contact avec l’ensemble des opérateurs français. »

La DGSE s’appuie aussi sur la direction internationale de l’opérateur, qui gère les filiales de téléphonie mobile à l’étranger. Orange joue dans certains cas un rôle stratégique. Il a ainsi accompagné les opérations militaires françaises au Mali et en Centrafrique. Enfin, la direction sécurité, chasse gardée des anciens de la direction technique de la DGSE, est le principal interlocuteur des services secrets. Elle veille, avec Orange Business Services, sur les questions de protection de données et de déchiffrement.

Interrogé, le patron d’Orange, Stéphane Richard, a indiqué que « des personnes habilitées secret-défense peuvent avoir à gérer, au sein de l’entreprise, la relation avec les services de l’Etat et notamment leur accès aux réseaux, mais elles n’ont pas à m’en référer. Tout ceci se fait sous la responsabilité des pouvoirs publics dans un cadre légal ». La DGSE s’est refusée à tout commentaire.

LE MONDE | 20.03.2014 à 11h25 • Mis à jour le 26.03.2014 à 16h14 |
Par Jacques Follorou

Find this story at 20 March 2013

© Le Monde.fr

The French intelligence agency in charge of military and electronic spying is massively collecting data and monitoring networks of telecoms giant Orange, Le Monde newspaper reported in its Friday edition.

A picture taken on February 24, 2014 in the French northern city of Lille, shows people walking in front of an Orange store

“The DGSE can read, like an open book, the origin and destination of all communications of Orange customers,” the paper said.

Monitoring operations were being carried out without any external supervision with access “free and total” for spies at the General Directorate for External Security (DGSE).

Le Monde said its report was based on an internal British intelligence document made available by former US intelligence contractor Edward Snowden.

Contacted by AFP, an Orange spokesman said the company “like all (other) operators has relations with state agencies in charge of the country’s and the French people’s security.”

“These relations strictly comply with the laws and are legal under the responsibility of the State and the control of judges,” he added.

The DGSE and agents with military clearance have been working with Orange, formerly known as France Telecom, “for at least 30 years”, said Le Monde.

The DGSE would not comment on the report.

Snowden, who has been charged in the United States with espionage, lives in exile in Russia.

He said earlier this month he had no regrets over his leaks about mass surveillance programmes by the US National Security Agency (NSA), saying they sparked a needed public debate on spying and data collection.

Published: 21 Mar 2014 at 03.49Online news: World

Find this story at 21 March 2014

© 2014 The Post Publishing PCL

General Paul Aussaresses was an intelligence chief whose revelations of torture and murder in Algeria shocked his country.

Aussaresses, who has died aged 95, scandalised France and disgraced himself when, in 2000, he revealed that he had participated in summary executions and acts of torture during the Algerian War of Independence.

The revelations, made when Aussaresses was 82, could hardly be called confessions, because they were not accompanied by any sign of remorse. On the contrary, Aussaresses noted that if confronted by the same situation again “it would piss me off, but I would do the same”.

For France, however, the news was deeply shocking, throwing into sharp relief long-buried concerns about its forces’ behaviour in its former colony, as well its treatment of Algerian allies afterwards. Aussaresses assured his countrymen that the future President François Mitterrand, then justice minister, had been kept scrupulously informed of every detail of what was happening in Algiers. “He knew,” Aussaresses noted. “Everyone knew.”

Jacques Chirac, president at the time of the publication of Aussaresses’s book, Services Spéciaux: Algérie 1955-57 (2001), declared himself “horrified” by its tales of murder, beatings, electrocution and waterboarding, and called for the “full truth” to come out. But the truth was worse than most people imagined.

Aussaresses described hanging Larbi Ben M’Hidi, a leader of the Algerian militant FLN, then making it look like suicide.

At the time, when such men were written off as terrorists, it seemed Aussaresses – France’s intelligence chief in Algeria – was hardly challenged. But 40 years later, his reflection that torture was an “effective” tool proved out of step with the mood of his country. He found little support, and was hauled before the French courts and stripped of his decorations. Even his family renounced him.

The truth, however, was that far from having collaborated during World War II, Aussaresses had fought behind enemy lines. Had he chosen not to open his mouth in his dotage, it is likely that many French politicians would have queued to pay homage at his funeral.

Paul Aussaresses was born on November 7, 1918, at Saint-Paul-de-Joux, south-west France. He was educated in Bordeaux, excelling in classics, and attended the St Cyr military academy at Aix-en-Provence, where it had relocated after the German invasion of 1940. By the end of his life he was more or less fluent in six languages.

After the war he moved into the French secret services, helping to create the shock unit of counter-intelligence, SDECE agency.

He arrived in Philippeville (now Skikda), Algeria, in autumn 1954, just as full-scale hostilities were about to break out. There he made no bones about his “enhanced” interrogation techniques, and quickly won a reputation for his ability to penetrate FLN cells. Such was his success that, in 1957, he was promoted to chief of intelligence by Gen Jacques Massu, leading what Aussaresses himself described as “the company of death”.

After France withdrew from Algeria, Aussaresses took his counter-insurgency experience to Fort Bragg, where he trained with the US Green Berets and produced a report entitled The American Army against guerrillas forces.

He returned to France in 1966, the year after he was appointed a Commander of the Legion of Honour.

Aussaresses spent much of the early 1970s in Latin America, training up special forces for many of the less salubrious regimes of the era. Little more was heard of him until 2000.

Paul Aussaresses was twice married and had three daughters.

PUBLISHED 07 DECEMBER 2013 09:30 PM

Find this story at 7 December 2013

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Edward Snowden papers unmask close technical cooperation and loose alliance between British, German, French, Spanish and Swedish spy agencies

The German, French, Spanish and Swedish intelligence services have all developed methods of mass surveillance of internet and phone traffic over the past five years in close partnership with Britain’s GCHQ eavesdropping agency.

The bulk monitoring is carried out through direct taps into fibre optic cables and the development of covert relationships with telecommunications companies. A loose but growing eavesdropping alliance has allowed intelligence agencies from one country to cultivate ties with corporations from another to facilitate the trawling of the web, according to GCHQ documents leaked by the former US intelligence contractor Edward Snowden.

The files also make clear that GCHQ played a leading role in advising its European counterparts how to work around national laws intended to restrict the surveillance power of intelligence agencies.

The German, French and Spanish governments have reacted angrily to reports based on National Security Agency (NSA) files leaked by Snowden since June, revealing the interception of communications by tens of millions of their citizens each month. US intelligence officials have insisted the mass monitoring was carried out by the security agencies in the countries involved and shared with the US.

The US director of national intelligence, James Clapper, suggested to Congress on Tuesday that European governments’ professed outrage at the reports was at least partly hypocritical. “Some of this reminds me of the classic movie Casablanca: ‘My God, there’s gambling going on here,’ ” he said.

Sweden, which passed a law in 2008 allowing its intelligence agency to monitor cross-border email and phone communications without a court order, has been relatively muted in its response.

The German government, however, has expressed disbelief and fury at the revelations from the Snowden documents, including the fact that the NSA monitored Angela Merkel’s mobile phone calls.

After the Guardian revealed the existence of GCHQ’s Tempora programme, in which the electronic intelligence agency tapped directly into the transatlantic fibre optic cables to carry out bulk surveillance, the German justice minister, Sabine Leutheusser-Schnarrenberger, said it sounded “like a Hollywood nightmare”, and warned the UK government that free and democratic societies could not flourish when states shielded their actions in “a veil of secrecy”.

‘Huge potential’

However, in a country-by-country survey of its European partners, GCHQ officials expressed admiration for the technical capabilities of German intelligence to do the same thing. The survey in 2008, when Tempora was being tested, 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”.

Bearers is the GCHQ term for the fibre optic cables, and gigabits per second (Gbps) measures the speed at which data runs through them. Four years after that report, GCHQ was still only able to monitor 10 Gbps cables, but looked forward to tap new 100 Gbps bearers eventually. Hence the admiration for the BND.

The document also makes clear that British intelligence agencies were helping their German counterparts change or bypass laws that restricted their ability to use their advanced surveillance technology. “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,” it says.

The country-by-country survey, which in places reads somewhat like a school report, also hands out high marks to the GCHQ’s French partner, the General Directorate for External Security (DGSE). But in this case it is suggested that the DGSE’s comparative advantage is its relationship with an unnamed telecommunications company, a relationship GCHQ hoped to leverage for its own operations.

“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.”

Noting that the Cheltenham-based electronic intelligence agency had trained DGSE technicians on “multi-disciplinary internet operations”, the document says: “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.”

GCHQ went on to host a major conference with its French partner on joint internet-monitoring initiatives in March 2009 and four months later reported on shared efforts on what had become by then GCHQ’s biggest challenge – continuing to carry out bulk surveillance, despite the spread of commercial online encryption, by breaking that encryption.

“Very friendly crypt meeting with DGSE in July,” British officials reported. The French 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.”

Fresh opportunities

In the case of the Spanish intelligence agency, the National Intelligence Centre (CNI), the key to mass internet surveillance, at least back in 2008, was the Spaniards’ ties to a British telecommunications company (again unnamed. Corporate relations are among the most strictly guarded secrets in the intelligence community). That was 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 report said. It concluded that GCHQ “have found a very capable counterpart in CNI, particularly in the field of Covert Internet Ops”.

GCHQ was clearly delighted in 2008 when the Swedish parliament passed a bitterly contested law allowing the country’s National Defence Radio Establishment (FRA) to conduct Tempora-like operations on fibre optic cables. The British agency also claimed some credit for the success.

“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 country assessment said. “GCHQ has already provided a lot of advice and guidance on these issues and we are standing by to assist the FRA further once they have developed a plan for taking the work forwards.”

The following year, GCHQ held a conference with its Swedish counterpart “for discussions on the implications of the new legislation being rolled out” and hailed as “a success in Sweden” the news that FRA “have finally found a pragmatic solution to enable release of intelligence to SAEPO [the internal Swedish security service.]”

GCHQ also maintains strong relations with the two main Dutch intelligence agencies, the external MIVD and the internal security service, the AIVD.

“Both agencies are small, by UK standards, but are technically competent and highly motivated,” British officials reported. Once again, GCHQ was on hand in 2008 for help in dealing with legal constraints. “The AIVD have just completed a review of how they intend to tackle the challenges posed by the internet – GCHQ has provided input and advice to this report,” the country assessment said.

“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.”

European allies

In the score-card of European allies, it appears to be the Italians who come off the worse. GCHQ expresses frustration with the internal friction between Italian agencies and the legal limits on their activities.

“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 bulletin six months later noted that GCHQ was “awaiting a response from AISI on a recent proposal for cooperation – the Italians had seemed keen, but legal obstacles may have been hindering their ability to commit.”

It is clear from the Snowden documents that GCHQ has become Europe’s intelligence hub in the internet age, and not just because of its success in creating a legally permissive environment for its operations. Britain’s location as the European gateway for many transatlantic cables, and its privileged relationship with the NSA has made GCHQ an essential partner for European agencies. The documents show British officials frequently lobbying the NSA on sharing of data with the Europeans and haggling over its security classification so it can be more widely disseminated. In the intelligence world, far more than it managed in diplomacy, Britain has made itself an indispensable bridge between America and Europe’s spies.

Julian Borger
The Guardian, Friday 1 November 2013 17.02 GMT

Find this story at 1 November 2013

© 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved.

Spain and France’s intelligence agencies carried out collection of phone records and shared them with NSA, agency says

European intelligence agencies and not American spies were responsible for the mass collection of phone records which sparked outrage in France and Spain, the US has claimed.
General Keith Alexander, the head of the National Security Agency, said reports that the US had collected millions of Spanish and French phone records were “absolutely false”.
“To be perfectly clear, this is not information that we collected on European citizens,” Gen Alexander said when asked about the reports, which were based on classified documents leaked by Edward Snowden, the former NSA contractor.
Shortly before the NSA chief appeared before a Congressional committee, US officials briefed the Wall Street Journal that in fact Spain and France’s own intelligence agencies had carried out the surveillance and then shared their findings with the NSA.
The anonymous officials claimed that the monitored calls were not even made within Spanish and French borders and could be surveillance carried on outside of Europe.

In an aggressive rebuttal of the reports in the French paper Le Monde and the Spanish El Mundo, Gen Alexander said “they and the person who stole the classified data [Mr Snowden] do not understand what they were looking at” when they published slides from an NSA document.
The US push back came as President Barack Obama was said to be on the verge of ordering a halt to spying on the heads of allied governments.
The White House said it was looking at all US spy activities in the wake of leaks by Mr Snowden but was putting a “special emphasis on whether we have the appropriate posture when it comes to heads of state”.
Mr Obama was reported to have already halted eavesdropping at UN’s headquarters in New York.
German officials said that while the White House’s public statements had become more conciliatory there remained deep wariness and that little progress had been made behind closed doors in formalising an American commitment to curb spying.
“An agreement that you feel might be broken at any time is not worth very much,” one diplomat told The Telegraph.
“We need to re-establish trust and then come to some kind of understanding comparable to the [no spy agreement] the US has with other English speaking countries.”
Despite the relatively close US-German relations, the White House is reluctant to be drawn into any formal agreement and especially resistant to demands that a no-spy deal be expanded to cover all 28 EU member states.
Viviane Reding, vice-president of the European Commission and EU justice commissioner, warned that the spying row could spill over and damage talks on a free-trade agreement between the EU and US.
“Friends and partners do not spy on each other,” she said in a speech in Washington. “For ambitious and complex negotiations to succeed there needs to be trust among the negotiating partners. It is urgent and essential that our US partners take clear action to rebuild trust.”
A spokesman for the US trade negotiators said it would be “unfortunate to let these issues – however important – distract us” from reaching a deal vital to freeing up transatlantic trade worth $3.3 billion dollars (£2bn) a day.
James Clapper, America’s top national intelligence, told a Congressional hearing yesterday the US does not “spy indiscriminately on the citizens of any country”.
“We do not spy on anyone except for valid foreign intelligence purposes, and we only work within the law,” Mr Clapper said. “To be sure on occasions we’ve made mistakes, some quite significant, but these are usually caused by human error or technical problems.”
Pressure from European leaders was added to as some of the US intelligence community’s key Congressional allies balked at the scale of surveillance on friendly governments.
Dianne Feinstein, the chair of powerful Senate intelligence committee, said she was “totally opposed” to tapping allied leaders and called for a wide-ranging Senate review of the activities of US spy agencies.
“I do not believe the United States should be collecting phone calls or emails of friendly presidents and prime ministers,” she said.
John Boehner, the Republican speaker of the house and a traditional hawk on national security, said US spy policy was “imbalanced” and backed calls for a review.
Mr Boehner has previously been a staunch advocate of the NSA and faced down a July rebellion by libertarian Republicans who tried to pass a law significantly curbing the agency’s power.

By Raf Sanchez, Peter Foster in Washington8:35PM GMT 29 Oct 2013 Comments15 Comments

Find this story at 29 October 2013

© Copyright of Telegraph Media Group Limited 2014

U.S. officials are alerting some foreign intelligence services that documents detailing their secret cooperation with the United States have been obtained by former National Security Agency contractor Edward Snowden, according to government officials.

Snowden, U.S. officials said, took tens of thousands of military intelligence documents, some of which contain sensitive material about collection programs against adversaries such as Iran, Russia and China. Some refer to operations that in some cases involve countries not publicly allied with the United States.

The process of informing officials in capital after capital about the risk of disclosure is delicate. In some cases, one part of the cooperating government may know about the collaboration while others — such as the foreign ministry — may not, the officials said. The documents, if disclosed, could compromise operations, officials said.

The notifications come as the Obama administration is scrambling to placate allies after allegations that the NSA has spied on foreign leaders, including German Chancellor Angela Merkel. The reports have forced the administration to play down operations targeting friends while also attempting to preserve other programs that depend on provisional partners. In either case, trust in the United States may be compromised.

“It is certainly a concern, just as much as the U.S. collection [of information on European allies] being put in the news, if not more, because not only does it mean we have the potential of losing collection, but also of harming relationships,” a congressional aide said.

The Office of the Director of National Intelligence is handling the job of informing the other intelligence services, the officials said. ODNI declined to comment.

In one case, for instance, the files contain information about a program run from a NATO country against Russia that provides valuable intelligence for the U.S. Air Force and Navy, said one U.S. official, who requested anonymity to discuss an ongoing criminal investigation. Snowden faces theft and espionage charges.

“If the Russians knew about it, it wouldn’t be hard for them to take appropriate measures to put a stop to it,” the official said.

Snowden lifted the documents from a top-secret network run by the Defense Intelligence Agency and used by intelligence arms of the Army, Air Force, Navy and Marines, according to sources, who spoke on the condition of anonymity to discuss sensitive matters.

Snowden took 30,000 documents that involve the intelligence work of one of the services, the official said. He gained access to the documents through the Joint Worldwide Intelligence Communications System, or JWICS, for top-secret/sensitive compartmented information, the sources said.

The material in question does not deal with NSA surveillance but primarily with standard intelligence about other countries’ military capabilities, including weapons systems — missiles, ships and jets, the officials say.

Although Snowden obtained a large volume of documents, he is not believed to have shared all of them with journalists, sources say. Moreover, he has stressed to those he has given documents that he does not want harm to result.

“He’s made it quite clear that he was not going to compromise legitimate national intelligence and national security operations,” said Thomas Drake, a former NSA executive who visited Snowden in Moscow this month. Snowden separately told Drake and a New York Times reporter that he did not take any documents with him to Russia. “There’s a zero percent chance the Russians or Chinese have received any documents,” Snowden told the Times in an online interview last week.

Indeed, Drake said, Snowden made clear in their conversation that he had learned the lessons of prior disclosures, including those by an Army private who passed hundreds of thousands of diplomatic cables to the anti-
secrecy organization WikiLeaks, which posted them in bulk online. “It’s telling,” Drake said, “that he did not give anything to WikiLeaks.”

Nonetheless, the military intelligence agencies remain fearful, officials said. The NSA in recent months has provided them with an accounting of the documents it believes Snowden obtained.

Intelligence officials said that they could discern no pattern to the military intelligence documents taken and that Snowden appeared to have harvested them at random. “It didn’t seem like he was targeting something specific,” the U.S. official said.

The notifications are reminiscent of what the State Department had to do in late 2010 in anticipation of the release of hundreds of thousands of sensitive diplomatic cables by WikiLeaks. The department feared that embarrassing details in some of the cables would lead to tension in relations between the United States and other countries.

In the case of WikiLeaks, the State Department had a number of months to assess the potential impact of the cables’ release and devise a strategy, former State Department spokesman P.J. Crowley said.

“I’m not sure there were that many startling surprises in the cables,” he said. But there was damage on a country-by-country basis, he said.

For instance, some of the cables reflected unfavorably on ­then-Libyan leader Moammar Gaddafi, alleging that he feared flying over water and almost never traveled without his “voluptuous blonde” Ukrainian nurse. “All of a sudden we found there were some unsavory guys following” then-U.S. Ambassador to Libya Gene Cretz, Crowley said. “We brought him home for consultations and did not send him back.”

“But broadly speaking,” Crowley said, “relationships are guided by interests, rather than personalities, and, over time, interests carry the day.”

The fundamental issue is one of trust, officials said. “We depend to a very great extent on intelligence-sharing relationships with foreign partners, mostly governments — or, in some cases, organizations within governments,” a second U.S. official said. “If they tell us something, we will keep it secret. We expect the same of them. [If that trust is undermined,] these countries, at a minimum, will be thinking twice if they’re going to share something with us or not.”

Snowden has instructed the reporters with whom he has shared records to use their judgment to avoid publishing anything that would cause harm. “I carefully evaluated every single document I disclosed to ensure that each was legitimately in the public interest,” he told the Guardian newspaper. “There are all sorts of documents that would have made a big impact that I didn’t turn over, because harming people isn’t my goal. Transparency is.”

It is those documents that may not be subject to journalistic vetting or may be breached by hackers that worry some intelligence officials. Snowden is known to have given documents in any quantity to only three journalists: The Post’s Barton Gellman, independent filmmaker Laura Poitras and former Guardian columnist Glenn Greenwald.

So far, Drake said, no such documents have been released. Snowden’s disclosures about the NSA have prompted a global debate about the proper scope and purpose of U.S. espionage — against its own and other countries’ citizens.

“I consider that a good thing,” Drake said.

By Ellen Nakashima, Published: October 24

Find this story at 24 October 2013

© The Washington Post Company

Espionage by the US on France has already strained relations between the two countries, threatening a trans-Atlantic trade agreement. Now a document seen by SPIEGEL reveals that the NSA also spied on the French Foreign Ministry.

America’s National Security Agency (NSA) targeted France’s Foreign Ministry for surveillance, according to an internal document seen by SPIEGEL.

Dated June 2010, the “top secret” NSA document reveals that the intelligence agency was particularly interested in the diplomats’ computer network. All of the country’s embassies and consulates are connected with the Paris headquarters via a virtual private network (VPN), technology that is generally considered to be secure.

Accessing the Foreign Ministry’s network was considered a “success story,” and there were a number of incidents of “sensitive access,” the document states.

An overview lists different web addresses tapped into by the NSA, among them “diplomatie.gouv.fr,” which was run from the Foreign Ministry’s server. A list from September 2010 says that French diplomatic offices in Washington and at the United Nations in New York were also targeted, and given the codenames “Wabash” and “Blackfoot,” respectively. NSA technicians installed bugs in both locations and conducted a “collection of computer screens” at the one at the UN.

A priority list also names France as an official target for the intelligence agency. In particular, the NSA was interested in the country’s foreign policy objectives, especially the weapons trade, and economic stability.

US-French relations are being strained by such espionage activities. In early July, French President François Hollande threatened to suspend negotiations for a trans-Atlantic free trade agreement, demanding a guarantee from the US that it would cease spying after it was revealed that the French embassy in Washington had been targeted by the NSA.

“There can be no negotiations or transactions in all areas until we have obtained these guarantees, for France but also for all of the European Union, for all partners of the United States,” he said at the time.

The NSA declined to comment to SPIEGEL on the matter. As details about the scope of the agency’s international spying operations continue to emerge, Washington has come under increasing pressure from its trans-Atlantic partners. Officials in Europe have expressed concern that negotiations for the trade agreement would be poisoned by a lack of trust.

09/01/2013 09:32 AM

Find this story at 1 September 2013

© SPIEGEL ONLINE 2013

The company that runs Paris’s electric car sharing scheme has filed an industrial espionage complaint against BMW, after employees alleged the German car giant sent “spies” to check out their electric cars.

Another Franco-German automobile row appears to have kicked off this week.
As the bust-up between between Mercedes and the French government rumbles on, another Franco-German automobile row appears to have kicked off this week with French company Autolib accusing BMW of “spying”.

The affair began on August 21st, when Autolib maintenance staff spotted two men they said were German, at a recharging station in Paris, fiddling with computer equipment in one of the electric vehicles, called “Blue cars”.

Later that day, the same men reportedly passed themselves off as “maintenance staff” and pretended to carry out work on one of the cars in the city’s 9th arrondissement, before slipping away.
Their suspicions raised, one of the Autolib ambassadors made a note of the license plate of one of the cars rented by the German men, cross-referenced it with rental times, and discovered that a “P3-group.com” email suffix was used to sign up online for the Autolib scheme.

P3 is an engineering firm contracted by none other than BMW to lay the groundwork for its upcoming I3 electric car model.

The following day, the alleged spies were once again seen at an Autolib station, this time in the city’s second arrondissement.

According to reports in French daily Le Figaro, when questioned by staff, the two men said they worked for BMW, before quickly leaving the scene.

This time, management at Autolib, which is run by French company Bolloré, notified the DCRI, France’s intelligence services, and told its entire staff to be on the look-out for phoney “maintenance staff”.
They were not seen again until September 5th, when they were spotted on Rue Jouffroy-d’Abbans in the seventh arrondissement.

Staff immediately called in the police, who came and arrested the two suspects.
They were questioned by BEFTI, the police’s electronic fraud division, before being released the next day.

Autolib management promptly filed a police complaint, accusing the two men of “abuse of trust,” “intrusion into a system of automated data,” and property damage, according to Le Figaro.
BMW reportedly took the step of writing to Bolloré’s CEO, Vincent Bolloré, reportedly recognizing it had dispatched staff to conduct “compatibility tests,” and apologizing for not seeking advanced permission from Bolloré.

However, in a statement released on Tuesday, BMW France denied all allegations of industrial espionage.
“In the context of the upcoming launch of the BMW I3, BMW Group is conducting routine tests across Europe, to check the compatibility of charging stations on public streets,” said the statement.
“The sole purpose of these tests is to identify networks of charging stations that electric BMW vehicles could use.”
The company confirmed it had conducted tests of this kind on August 21st, 22nd and 26th in Paris, but significantly denied it had done so on September 5th, the day the two alleged spies were arrested.
A representative from the P3 Group was not immediately available for comment when contacted by The Local on Tuesday.
Autolib, an all-electric car-sharing scheme based on the French capital’s successful bike-sharing project Velib, launched in October 2011.
Users can rent and return one of the more than 4,000 Bluecars for as little as €9 for half an hour, or as much as €120 for an annual subscription of unlimited journeys of up to 30 minutes.
Since launching in Paris, the scheme has come to the eastern city of Lyon, and is slated to arrive in Bordeaux, south-western France in November.
After that, plans are afoot to bring the all-electric car-sharing scheme to the US city of Indianapolis in 2014.

Published: 10 Sep 2013 14:25 GMT+02:00

Find this story at 10 September 2013

Copyright The Local Europe GmbH

Paris prosecutor Jean-Claude Marin on Jan. 14 began an inquiry into allegations of commercial espionage carried out against French carmaker Renault. The allegations first became public when Renault suspended three of its employees on Jan. 3 after an internal investigation that began in August 2010. Within days, citing an anonymous French government source, Reuters reported that French intelligence services were looking into the possibility that China played a role in the Renault espionage case. While the French government refused to officially confirm this accusation, speculation has run wild that Chinese state-sponsored spies were stealing electric-vehicle technology from Renault.

The Chinese are well-known perpetrators of industrial espionage and have been caught before in France, but the details that have emerged so far about the Renault operation differ from the usual Chinese method of operation. And much has been learned about this MO just in the last two years across the Atlantic, where the United States has been increasingly aggressive in investigating and prosecuting cases of Chinese espionage. If Chinese intelligence services were indeed responsible for espionage at Renault it would be one of only a few known cases involving non-Chinese nationals and would have involved the largest amount of money since the case of the legendary Larry Wu-Tai Chin, China’s most successful spy.

STRATFOR has previously detailed the Chinese intelligence services and the workings of espionage with Chinese characteristics. A look back at Chinese espionage activities uncovered in the United States in 2010, since our latest report was compiled, can provide more context and detail about current Chinese intelligence operations.

Chinese Espionage in the U.S.

We chose to focus on operations in the United States for two reasons. First, the United States is a major target for Chinese industrial espionage. This is because it is a leader in technology development, particularly in military hardware desired by China’s expanding military, and a potential adversary at the forefront of Chinese defense thinking. Second, while it is not the only country developing major new technologies in which China would be interested, the United States has been the most aggressive in prosecuting espionage cases against Chinese agents, thereby producing available data for us to work with. Since 2008, at least seven cases have been prosecuted each year in the United States against individuals spying for China. Five were prosecuted in 2007. Going back to about 2000, from one to three cases were prosecuted annually, and before that, less than one was prosecuted per year.

Most of the cases involved charges of violating export restrictions or stealing trade secrets rather than the capital crime of stealing state secrets. As the premier agency leading such investigations, the FBI has clearly made a policy decision to refocus on counterintelligence after an overwhelming focus on counterterrorism following 9/11, and its capability to conduct such investigations has grown. In 2010, 11 Chinese espionage cases were prosecuted in the United States, the highest number yet, and they featured a wide range of espionage targets.

Ten of the 11 cases involved technology acquisition, and five were overt attempts to purchase and illegally export encryption devices, mobile-phone components, high-end analog-to-digital converters, microchips designed for aerospace applications and radiation-hardened semiconductors. These technologies can be used in a wide range of Chinese industries. While the mobile-phone technology would be limited to Chinese state-owned enterprises (SOEs) such as China Mobile, the aerospace-related microchips could be used in anything from rockets to fighter jets. Xian Hongwei and someone known as “Li Li” were arrested in September 2010 for allegedly attempting to purchase those aerospace-related microchips from BAE Systems, which is one of the companies involved in the development of the F-35 Joint Strike Fighter. Similar espionage may have played a role in China’s development of the new J-20 fifth-generation fighter, but that is only speculation.

(click here to enlarge image)

Five other cases in 2010 involved stealing trade secrets. These included organic light-emitting diode processes from Dupont, hybrid vehicle technology from GM, insecticide formulas from the Dow Chemical Co., paint formulas from Valspar and various vehicle design specifications from Ford. These types of Chinese cases, while often encouraged by state officials, are more similar to industrial espionage conducted by corporations. Since many of the major car companies in China are state-run, these technologies benefit both industry and the state.

But that does not mean these efforts are directed from Beijing. History shows that such espionage activities are not well coordinated. Various Chinese company executives (who are also Communist Party officials) have different requirements for their industrial espionage. In cases where two SOEs are competing to sell similar products, they may both try to recruit agents to steal the same technology. There are also a growing number of private Chinese companies getting involved in espionage. One notable example was when Du Shanshan and Qin Yu passed on technology from GM to Chery Automobile, a private, rather than state-run, manufacturer. In the five trade-secret cases in 2010, most of the suspects were caught because of poor tradecraft. They stored data on their hard drives, sent e-mails on company computers and had obvious communications with companies in China. This is not the kind of tradecraft we would expect from trained intelligence officers. Most of these cases probably involved ad hoc agents, some of whom were likely recruited while working in the United States and offered jobs back in China when they were found to have access to important technology.

These cases show how Chinese state-run companies can have an interest in espionage in order to improve their own products, both for the success of their companies and in the national interest of China. The U.S. Department of Justice has not provided specific details on how the stolen defense-related technologies were intended to be used in China, so it is hard to tell whether they would have enhanced China’s military capability.

First-generation Chinese carried out 10 of the 11 publicized cases in the United States last year. Some were living or working temporarily in the United States, others had become naturalized American citizens (with the exception of Xian and Li, who were caught in Hungary). The Chinese intelligence services rely on ethnic Chinese agents because the services do not generally trust outsiders. When recruiting, they also use threats against family members or the individuals themselves. Second- and third-generation Chinese who have assimilated in a new culture are rarely willing to spy, and the Chinese government has much less leverage over this segment of the ethnic-Chinese population living overseas.

In the 11 cases in 2010, it is not clear what payments, if any, the agents might have received. In some cases, such as those involving the trade secrets from Valspar and Ford, the information likely helped the agents land better jobs and/or receive promotions back in China. Cash does not typically rule the effectiveness of newly recruited Chinese spies, as it might with Western recruits. Instead, new Chinese agents are usually motivated by intelligence-service coercion or ideological affinity for China.

The outlier in 2010 was Glenn Duffie Shriver, an American student with no Chinese heritage who applied to work at both the U.S. State Department and the CIA. His was the first publicized case of the Chinese trying to develop an agent in place in the United States since Larry Chin. Shriver studied in China in 2002 and 2003. The recruitment process began when he returned to China in 2004 to seek employment and improve his language capabilities. After responding to an ad for someone with an English-language background to write a political paper, Shriver was paid $120 for producing an article on U.S.-Chinese relations regarding Taiwan and North Korea.

The woman who hired him then introduced him to two Chinese intelligence officers named Wu and Tang. They paid Shriver a total of $70,000 in three payments while he tried to land a job with the U.S. government. Shriver failed the exams to become a foreign service officer and began pursuing a career with the CIA. He was accused of lying on his CIA application by not mentioning at least one trip to China and at least 20 meetings with Chinese intelligence officers. It is not clear how he was exposed, but customs records and passport stamps would have easily revealed any trips to China that he did not report in his CIA application. On Oct. 22, 2010, Shriver pleaded guilty to conspiring to provide national defense information to intelligence officers of the People’s Republic of China and was sentenced to 48 months in prison in accordance with his plea agreement.

A few Americans have been accused of being Chinese agents before, such as former Defense Department official James Fondren, who was caught and convicted in 2009. These cases are rare, though they may increase as Beijing tries to reach higher levels of infiltration. It is also possible that the FBI has been reaching only for low-hanging fruit and that Chinese espionage involving Americans at higher levels is going undetected. If this were the case, it would not be consistent with the general Chinese espionage MO.

China takes a mosaic approach to intelligence, which is a wholly different paradigm than that of the West. Instead of recruiting a few high-level sources, the Chinese recruit as many low-level operatives as possible who are charged with vacuuming up all available open-source information and compiling and analyzing the innumerable bits of intelligence to assemble a complete picture. This method fits well with Chinese demographics, which are characterized by countless thousands of capable and industrious people working overseas as well as thousands more analyzing various pieces of the mosaic back home.

Another case in 2010 was an alleged China-based cyberattack against Google, in which servers were hacked and customer account information was accessed. Last year, more than 30 other major companies reported similar infiltration attempts occurring in 2009, though we do not know how widespread the effort really is. China’s cyber-espionage capabilities are well known and no doubt will continue to provide more valuable information for China’s intelligence services.

The Renault Case

Few details have been released about the Renault case, which will likely remain confidential until French prosecutors finish their investigation. But enough information has trickled in to give us some idea of the kind of operation that would have targeted Renault’s electric-vehicle program. Three Renault managers were accused: Matthieu Tenenbaum, who was deputy director of Renault’s electric-vehicle program; Michel Balthazard, who was a member of the Renault management board; and Bertrand Rochette, a subordinate of Balthazard who was responsible for pilot projects. Various media reports — mostly from Le Figaro — claim that the State Grid Corporation of China opened bank accounts for two of the three managers (it is unknown which two). Money was allegedly wired through Malta, and Renault’s investigators found deposits of 500,000 euros (about $665,000) and 130,000 euros (about $175,000) respectively in Swiss and Liechtenstein bank accounts.

Assuming this is true, it is still unclear what the money was for. Given that the three executives had positions close to the electric-vehicle program, it seems that some related technology was the target. Patrick Pelata, Renault’s chief operating officer, said that “not the smallest nugget of technical or strategic information on the innovation plan has filtered out of the enterprise.” In other words, Renault uncovered the operation before any technology was leaked — or it is intentionally trying to downplay the damage done in order to reassure investors and protect stock prices. But Pelata also called the operation “a system organized to collect economic, technological and strategic information to serve interests abroad.”

Renault is convinced a foreign entity was involved in a sophisticated intelligence operation against the company. The question is, what foreign entity? On Jan. 13, Renault filed an official complaint with French authorities, saying it was the victim of organized industrial espionage, among other things, committed by “persons unknown.” French Industry Minister Eric Besson clarified Jan. 14 that there was no information to suggest Chinese involvement in the case, though he previously said France was facing “economic war,” presuming that the culprits came from outside France. The source for the original rumors of Chinese involvement is unclear, but the French clearly backed away from the accusation, especially after Chinese Foreign Ministry spokesman Hong Lei called the accusation “baseless and irresponsible” on Jan. 11 (of course, even if the Chinese were the culprits they would certainly not admit it).

The Chinese have definitely targeted energy-efficient motor vehicle technology in the past, in addition to the Ford and GM cases, and Renault itself is no stranger to industrial espionage activities. In 2007, Li Li Whuang was charged with breach of trust and fraudulent access to a computer system while working as a trainee at Valeo, a French automotive components manufacturer, in 2005. The 24-year-old was studying in Paris when she was offered the trainee position at Valeo. Investigators found files on her computer related to a project with BMW and another with Renault.

The new Renault case, however, is very different from most Chinese espionage cases. First, it involved recruiting three French nationals with no ethnic ties to China, rather than first-generation Chinese. Second, the alleged payments to two of three Renault employees were much larger than Chinese agents usually receive, even those who are not ethnic Chinese. The one notable exception is the case of Larry Chin, who is believed to have received more than $1 million in the 30 years he spied for China as a translator for U.S. intelligence services. Renault executives would also be paid as much or more in salaries than what was found in these bank accounts, though we don’t know if more money was transferred in and out of the accounts. This may not be unprecedented, however; STRATFOR sources have reported being offered many millions of dollars to work for the Chinese government.

Another problem is the alleged use of a Chinese state-owned company to funnel payments to the Renault executives. Using a company traceable not only to China but to the government itself is a huge error in tradecraft. This is not likely a mistake that the Chinese intelligence services would make. In Chin’s case, all payments were made in cash and were exchanged in careful meetings outside the United States, in places where there was no surveillance.

Thus, STRATFOR doubts that the Renault theft was perpetrated by the Chinese. The leak suggesting otherwise was likely an assumption based on China’s frequent involvement in industrial espionage. Still, it could be a sign of new methods in Chinese spycraft.

Higher-level Recruitment?

The Shriver and Renault cases could suggest that some Chinese intelligence operations are so sophisticated that counterintelligence officers are unaware of their activities. They could mean that the Chinese are recruiting higher-level sources and offering them large sums of money. Chin, who got his start working for the U.S. Army during the Korean War, remained undetected until 1985, when a defector exposed him. There may be others who are just as well hidden. However, according to STRATFOR sources, including current and former counterintelligence officers, the vast majority of Chinese espionage operations are perpetrated at low levels by untrained agents.

There is little indication that the Chinese have switched from the high-quantity, low-quality mosaic intelligence method, and cyber-espionage activities such as hacking Google demonstrate that the mosaic method is only growing. The Internet allows China to recruit from its large base of capable computer users to find valuable information in the national interest. It provides even more opportunities to vacuum up information for intelligence analysis. Indeed, cyber-espionage is being used as another form of “insurance,” a way to ensure that the information collected by the intelligence services from other sources is accurate.

If China is responsible for the Renault penetration, the case would represent a change in the Chinese espionage MO, one aiming at a higher level and willing to spend more money, even though most of the cases prosecuted in the United States pointed to a continuation of the mosaic paradigm. Nevertheless, counterintelligence officers are likely watching carefully for higher-level recruits, fearing that others like Chin and Shriver may have remained undetected for years. These cases may be an indication of new resources made available to Western counterintelligence agencies and not new efforts by the Chinese.

One thing is certain: Chinese espionage activities will continue apace in 2011, and it will be interesting to see what targets are picked.

Security Weekly
THURSDAY, JANUARY 20, 2011 – 03:53 Print Text Size
By Sean Noonan

Find this story at 20 January 2011

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