The World

2/23/00
- US spy system under attack



BBC
Wednesday, 23 February, 2000, 22:11 GMT
              US spy system under
              attack

              The European Parliament is to
              investigate allegations that the US
              uses electronic surveillance to spy on
              companies in the EU.

              The Echelon system, originally set up
              during the Cold War, is known to be
              capable of intercepting private
              telephone conversations, faxes and
              e-mails worldwide.

              A committee of the
              European
              Parliament on
              Wednesday heard
              allegations that it
              has been used to
              help American
              firms win
              commercial
              contracts at the
              expense of
              European rivals.

              A report
              commissioned by
              the European
              Parliament also alleged the UK was
              helping the US to spy on its European
              partners.

              Both the US and the UK have denied
              the allegations.

              "US intelligence agencies are not
              tasked to engage in industrial
              espionage or obtain trade secrets for
              the benefit of any US company or
              companies," State Department
              spokesman James Rubin said.

              UK Prime Minister Tony Blair denied
              that Echelon had been used against
              Britain's partners in Europe.

              He said there were strict rules
              governing such issues and they were
              always applied.

              France alert

              The French Justice Minister, Elisabeth
              Guigou, said Echelon had apparently
              been diverted to keep watch on
              commercial rivals, prompting French
              companies to encrypt sensitive
              information.

              She said businesses now had to be
              particularly vigilant.

              "Communications must never carry
              vital information, especially when the
              link is made via a satellite," the
              minister said.

              She said that last year the
              government had enabled private firms
              and individuals to encode their
              communications to stop them from
              being intercepted.

              German Christian Democratic Euro-MP
              Christian von Boetticher told
              reporters he estimated the economic
              cost of the spying to European
              business to be 20 billion euros
              ($20bn).

              The Belgian Foreign Minister Louis
              Michel said the alleged spying was
              unacceptable.

              'Losing out'

              The report, compiled by independent
              Scottish investigative journalist
              Duncan Campbell, includes
              allegations that sensitive commercial
              information gathered through Echelon
              meant the French company Thomson
              lost a radar contract in Brazil, and the
              European Airbus consortium lost out
              to the US's Boeing in competition for
              a $6bn aircraft contract.

              After presenting the report to the
              European Parliament's Committee for
              Justice and Home Affairs, Mr
              Campbell urged the EU to take action
              to protect against unwanted
              interception of communications,
              insisting that the eavesdropping
              violated human rights.

              Mr Campbell alleged that national
              security agencies were using several
              major US corporations to aid their
              interception of data capabilities.

              He named Microsoft, IBM and a
              certain "large American microchip
              maker" as providing product features
              which allowed for the interception of
              information.

              Echelon's existence was only recently
              confirmed by the US Government
              through the declassification of secret
              documents of the US National
              Security Agency (NSA).

              Most of installations are in the US
              and UK, but the report also states
              that Canada, Australia and New
              Zealand are partners in the
              operation.

              Earlier on Wednesday, New Zealand
              denied that it was involved in
              commercial spying.

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