BLILEY TO CONDUCT AGGRESSIVE REVIEW OF SECURITY AT DOE LABS Announces GAO Investigation & Public Hearing http://www.softwar.net/doe.html For Immediate Release: Tuesday, March 23, 1999 Contact: Christina Gungoll or Peter Sheffield 202.225.5735 WASHINGTON (March 23) -- Unsatisfied with the Department of Energy's long-standing inability to fix security breaches at its labs, Chairman Tom Bliley (R-VA) announced today that he will take action to help find an effective and permanent solution to this very serious national security problem. In a letter sent to Energy Secretary Bill Richardson today, Chairman Bliley expressed his concern about "the long history of recurring and unresolved security problems at DOE's laboratories." In an effort to help find a long-term solution to DOE's decade-old security problems, Chairman Bliley made the following announcements today: (1) In a letter to DOE Secretary Bill Richardson, Bliley announced that the Committee will conduct a very aggressive, bottom-up review of DOE labs with the biggest security risks; (2) In a letter to the General Accounting Office (GAO), Chairman Bliley requested that GAO conduct a comprehensive investigation of the current status of DOE's safeguards and security programs, including the extent to which prior security recommendations have been effectively implemented and the causes for any failures; and, (3) Bliley announced that in early April, the Committee will hold a public hearing to educate Members and the public about the recurring security problems at the DOE labs, the causes of the problems, and what can be done to fix them. In the letter to Richardson, Chairman Bliley also said he is troubled by DOE's long history of "failing to implement in a timely or effective manner security recommendations that have been made by experts within and outside of DOE repeatedly over the past decade." "It appears that DOE's security problems are not isolated historical events, but rather are endemic to the current DOE management and operations structure," Bliley said in the letter. Copies of the letters from Bliley to Secretary Richardson and GAO are attached. #### _________________________________ The House Committee on Commerce 2125 Rayburn House Office Building Washington, DC 20515 [EMAIL PROTECTED] http://www.house.gov/commerce ------------------------------------------------------------- China Reform Monitor No. 181, March 23, 1999 American Foreign Policy Council, Washington, DC http://www.afpc.org EXTENSIVE CHINESE ESPIONAGE OPERATIONS IN U.S. DETAILED; PLA INTENSIFIES COMPUTER WARFARE EFFORTS VS. U.S., TAIWAN March 10: Intelligence officials from the CIA and FBI say Beijing has created a vast espionage network in the United States that has penetrated not only nuclear weapons labs, but also many companies and corporations whose technology is coveted for both military and commercial needs, reports Knight Ridder Newspapers. U.S. counterintelligence experts say that although many nations spy in America, China's loosely knit network is especially difficult to combat because of its huge size and China's cultural, political and economic advantages. "The Chinese sends out thousands of intelligence agents to pick up grains of sand [information] and come back and build their sand castle," says Buck Revell, former FBI deputy director. "Culturally," says former CIA counterintelligence chief Paul Redmond, "they operate in a totally different environment and time frame. Chinese do not think in terms of hours, days or weeks, but in terms of decades. They are an ancient civilization...dealing in the intricacies of long term planning." Former CIA station chief in Beijing, James Lilley believes the recent Wen Ho Lee spy case at Los Alamos nuclear weapons lab is merely, "the tip of the iceberg." March 16: The U.S. Department of Defense reports that China has intensified its computer warfare efforts aimed at defending its own networks and penetrating sensitive systems in Taiwan and the United States, the Financial Times reports. The recent Defense Department report, "The Security Situation in the Taiwan Strait," claims that China is developing methods to "insert computer viruses into foreign networks as part of its overall Information [warfare] Operations Strategy." March 21: Senior U.S. intelligence and law enforcement officials claim that they may never solve how China obtained U.S. information on how to miniaturize nuclear warheads because of China's diffuse and patient espionage strategy, which is far different from Cold War operations, the Washington Post reports. China's spying involves prying or cajoling bits of information out of visiting foreign experts and delegations, and tasking thousands of Chinese abroad to bring home morsels of technological information, like colonies of ants carrying grains of sand. Nicholas Eftimiades, author of the book Chinese Intelligence Operations, and a leading Defense Intelligence Agency expert, testified before the Congress' Joint Economic Committee on how the Chinese sponsor visits by foreign scholars and technical experts and then wear them or finess them into revealing bits of pointed, but seemingly harmless, information -- as well as using sophisticated surveillance cameras, phone taps and microphones in hotels. However, Eftimiades stated, "China's premier intelligence service, the Ministry of State Security [MSS] "appears far more comfortable recruiting persons of Chinese descent as opposed to non-Chinese foreign nationals." Eftimiades observes, "The MSS coopts vast numbers of Chinese living and traveling overseas." Among them, the Post adds, 15,000 Chinese graduate students arriving in the United States annually, tens of thousands of government representatives and businessmen, and 1,500 Chinese diplomats and commercial representatives. Chinese intelligence also tasks "co-optees" to acquire technologies through front companies or by purchasing U.S. companies. ------------------------------------------------------------- COLONEL STANISLAV LUNEV - 3/24/99 JERRY HUGHES Colonel Lunev of the GRU will speak on the Jerry Hughes Show. CONTAMINATED IRIDIUM - NOT A SECURITY CONCERN Motorola has delayed the flight of two Iridium satellites on Chinese Long March booster and shipped both satellites back to America. An Iridium official told Aviation Week that the satellites were exposed to "environmental conditions" during processing in China. The satellites were replacements and the delay is not expected to effect the Iridium system operation. Motorola denied the delay had anything to do with national security concerns. PRC FUBY - HACKERS DREAM The Furby scandal has blown to NASA. A memo from NASA security head Steve Petyon ordered all employees to remove any Fubys. Security is concerned the cute PRC built toy is recording voice data for playback later. The computer weirdos at NSA have also noted the chip electronics mounted in the Furby can record or playback digital data at very high speeds (e.g. modem or line data) without much modification. DOD RED TEAM DISCOVERS LEAKS Defense Dept. Red Teams have turned up "very sensitive" materials on the Internet published by the ... Defense Dept. The Red Team discovery comes long after this author noted the details on the giant HARRP gun project, a USAF case-less ammunition project, and the complete manual for the KY-58 encrypted radio for the F-16 were published on .mil websites. MANNED VS. ROBOT If the B-2 is used over Serbia it is because the USAF is short on conventional ALCM cruise missiles. The repeated and fruitless "Monica Storm" strikes at Iraq have the USAF cruise missile inventory down to less than 300. No more Boeing missiles are left and none are being produced. ================================================================ 1 if by land, 2 if by sea. Paul Revere - encryption 1775 Charles R. Smith SOFTWAR http://www.softwar.net [EMAIL PROTECTED] Pcyphered SIGNATURE: 28BA4A04894E2ABDA6B77FAAFD588F822E1DFE630BC0BFC5A9186A61815E6204 F5CA0914AEDBFF74783E9F2BF76841CBAC6771B9B93A13BEC030DF3C82F4EE38 F7FDCB4E0F13CB20 ================================================================ SOFTWAR EMAIL NEWSLETTER 03/24/99 *** to unsubscribe reply with "unsubscribe" as subject *** ================================================================
