Australian Broadcasting Corporation

NOTE:   This transcript is typed from a recording and not from the original
script.  Because of the difficulties of mishearing and the difficulties in
some cases of identifying individual speakers, the ABC cannot vouch for its
accuracy.


"CODE NAME MANTRA"

21ST FEBRUARY, 1994

REPORTER:  ROSS COULTHART

PRODUCER:  MARK CORCORAN


NOT FOR PUBLICATION

OPENING THEME AND TITLES

ANDREW OLLE  (STUDIO)

Welcome to the program... and to what we believe is a first on Australian
television.

Tonight, two former spies speak out about their under cover work for
Australia.  Their revelations raise serious questions about the conduct and
priorities of our overseas intelligence operations.  As a result, we're
holding over our advertised program.

The Australian Secret Intelligence Service - ASIS - is by necessity a
shadowy organisation.  Its job is to gather information abroad that could
be important to Australia ... in other words, to spy on other countries.
Few would suggest that we should never indulge in such covert activities.
At times, it's clearly vital.  But as you'll see tonight, spying is also
fraught with danger ... for the agents ... and for the broader interest
they're supposed to serve.

The two senior ex-ASIS operatives at the heart of our story have their own
reasons for unburdening these national secrets.  However, Four Corners is
confident that their disclosures - though often alarming - do not threaten
our national security.  On the contrary, it's hoped that bringing them out
into the open might head off future excesses.

ANDREW OLLE (Continued)

Ross Coulthart and Producer Mark Corcoran take us into the sometimes
bizarre world of intrigue inhabited by the Australian Secret Intelligence
Service.

FILM: BUDDHIST TEMPLE, MONKS CHANTING MANTRA

ROSS COULTHART (VOICE OVER)

In the shadowy wilderness of mirrors that is the world of espionage,  the
files of Australia s secret overseas spy service, ASIS, are never referred
to by name.    The spies, bureaucrats and select Government Ministers who
deal daily with the ASIS secrets refer to them only as MANTRA.

For a Hindu or a Buddhist a MANTRA is a vedic hymn, a devotional
incantation to the Gods.     Inside Australia s secret service MANTRA is
now the code word used to shield the activities of our most covert arm of
Government.

ROSS COULTHART (TO CAMERA)

Through the stories of its spies Four Corners will help decipher the ASIS
MANTRA.   We reveal what s really going on behind the walls of our secret
service.    Never before have ex-ASIS officers spoken so candidly on
television.   They say Australians are being poorly served by their secret
service.   Their allegations raise very serious questions about the
operations and accountability of ASIS.

FILM: OFFICER #1 WALKING THROUGH SYDNEY

ROSS COULTHART

This man worked as a spy for Australia until 1985.    Sent to the elite
British Secret Intelligence Service - better known as MI6 -  he did a
training course there in 1976 and later spied for Australia while posing as
a diplomat.

Because he now works as a senior executive in the corporate sector,  he
doesn t want his name revealed.  He knows his old ASIS bosses will know who
he is, but he doesn t want to jeopardise the organisation he works for by
identifying himself any more than he has to.  So we ll call him Officer
One.


FILM - INTERVIEW WITH OFFICER ONE IN SILHOUETTE

ROSS COULTHART

Q:  How long were you a spy?A: For nine years.Q:  And in that time what
regions of the world did you work in?A:  Well around the Asian area and in
the Middle East.

ROSS COULTHART

Officer One knows he risks criminal prosecution by telling his story.  It s
a breach of the Crimes Act for him to even talk about what he did for ASIS.

FILM: OFFICER  #2 ON FERRY

ROSS  COULTHART

This man was also a spy for Australia.   He quit ten months ago,  in April
1993, after a posting as chief of the ASIS station in Delhi, India.   He
was, at one time, the deputy head of ASIS counter-intelligence and
operational controller for Indo-China, Burma and India.   Before that he
worked for Australia s domestic spy service, ASIO.   We ll call him Officer
Two.

FILM - INTERVIEW WITH OFFICER NUMBER TWO IN SILHOUETTE

OFFICER #2

I'm a former officer of the Australian Secret Intelligence Service - ASIS -
and I'm speaking to you today because I believe that there are problems
within ASIS and within the administration of ASIS that urgently need to be
addressed.

FILM - GRAPHIC OF DIPLOMATIC PASSPORTS



ROSS COULTHART

We ve established that these two former spies are who they say they are.
They served under diplomatic cover in Australia s foreign embassies.  They
both have personal grievances with ASIS, but their allegations go well
beyond their personal battles.

FILM - INTERVIEW WITH OFFICER # 2

OFFICER # 2

ASIS itself is a very small organisation and, as you'll see in the course
of the discussions, ah ..... the impropriety in which its conducted itself
is at this stage restricted to a fairly small circle.  But it does have
potential and has in the past jumped across into the mainstream of public
activity and its ... its done so as part of ... or in response to a culture
within ASIS that essentially operates outside the normal rules which govern
all other government agencies and departments.
FILM - FOREIGN AFFAIRS BUILDING, CANBERRAROSS COULTHART
ASIS headquarters sits on the fourth and fifth floors of the Department of
Foreign Affairs here in Canberra.  It s so secret its existence wasn t even
admitted to Parliament until 1977.

ASIS is Australia s equivalent of the American CIA or the British MI6. It s
completely separate from Australia s domestic security  organisation, ASIO.
It s a small service with a budget of about 32 million dollars.   Of the
300 staff, only about 45 are spies.




ROSS COULTHART (TO CAMERA)

The shadowy nature of espionage makes it almost impossible to test the
truth of much of the allegations  these former officers make about ASIS
operations.  But they re risking jail to blow the whistle on what they
claim is Australia s disturbing secret involvement in wars, coups and
political intrigue.    Those operations they detail are often of dubious
benefit to Australia s national interest.   Here s just a few:

FILM - SOLDIERS FIGHTING ON THE STREETS OF MANILA

ROSS COULTHART (VOICE OVER)

The Philippines,  1987.   ASIS officers are secretly paying thousands of
dollars to an agent inside Opposition army movement,  RAM.     In August
RAM leader Colonel Gringo Honasan leads RAM in a coup attempt  on the
Aquino Government.  Despite the coup attempt, ASIS continued to make
payments to the rebels.

FILM - FALKLANDS WAR

ROSS COULTHART (VOICE OVER)

The Falklands War,  1982.

Despite Australia s supposed neutrality,  the close ties between ASIS and
Britain s MI6 are reaffirmed.   Australia s Secret Service plays a critical
covert role for the British in Argentina.    An ASIS officer is sent to
Buenos Aires.   He provides a vital communications link between British
agents in Argentina and MI6 headquarters in London.    Had his role been
revealed,  the Australian Embassy would almost certainly have been seized
by the Argentinians.

FILM - HONG KONG

ROSS COULTHART (VOICE OVER

Hong Kong, 1993.   As Chinese control of this tiny British colonial outpost
in 1997 draws nearer, Britain s MI6 has made intelligence gathering on
Chinese intentions for the colony a maximum priority.

FILM - INTERVIEW WITH FORMER M16 (BRITISH SIS) CONTROLLER, BARONESS PARK



BARONESS PARK

China of course a great country and a major target and I think you can be
absolutely sure that the Service will have been enabled to put what effort
is necessary into covering what HMG wants to know about that part of the
world.

INTERVIEWER

Using all traditional methods?

BARONESS PARK

And a few new ones as well, I think. (laughs)

ROSS COULTHART

But what this MI6 officer doesn t reveal in her authorised interview  is
that Australian "tech-ops" experts are doing much of the bugging for the
British in Hong Kong.    Four Corners has learned Australians have bugged
many offices in the colony for the British.

FILM: HONG KONG
ROSS COULTHART

It s unlikely Australia gets any of the commercial intelligence the British
obtain by using our bugging experts.

FILM - IRAQI CONVOYS OUTSIDE KUWAIT AFTER GULF WAR

ROSS COULTHART

Kuwait, 1991.  In the wake of the Gulf War, international business follows
hard on the heels of the victorious allied forces.  The ruined
infrastructure of Kuwait is a grabfest for companies eager to win the huge
petro-dollar backed contracts needed to rebuild the country.

FILM - AUSTRALIAN BUSINESS DELEGATION TRADE MINISTER NEAL BLEWETT




ROSS COULTHART

Australian businessmen were there, led by Trade Minister Neal Blewett.

FILM - ARCHIVAL FOOTAGE - INTERVIEW WITH NEAL BLEWETT IN KUWAIT AFTER GULF
WAR

NEAL BLEWETT

Our business people have to get in here. They have to get in here quickly
and, like this delegation, I think they have to take a few risks....

ROSS COULTHART
Vying for a piece of the action.   Competing to get a commercial edge
against other countries - including the British.   Yet, at the same time as
the delegation makes its bid,  an ASIS officer is helping the British bug
many Kuwaiti offices to obtain vital intelligence on contracts.   Again,
It s intelligence that went to Britain but not Australia.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

ASIS maintains a technical section ... ah ... as part and parcel of that
technical section officers are sent on secondment  to the UK.  SIS.  While
they're with the UK  SIS they're used by the British for the purpose of
mounting technical operations.

Q.  Bugging?

A. Bugging... and I understand that in the aftermath of the Iraq War the
British sent teams out to ah ... Kuwait to fit up various offices in
support of their business initiatives ah ... an  Australian technician
accompanied these ... ah ... one or other of these teams and was
instrumental in mounting an operation or operations which secured
intelligence in support of British business.  The problem was of course
that Australian businesses were also competing in Kuwait for the same
contracts so there's a clear example of where Australian interests were
jeopardised.

Q.  Was Australia getting any of that information from the bugs that its
technical operators placed for the UK?

A.  Well the benefits of the bugs installed with the assistance of our
officers ... no, not to my knowledge...




FILM - KUWAIT

ROSS COULTHART

It s highly likely Australia s Secret Service doesn t even realise the
consequences of its actions in loaning its tech-ops men to the British.
When ASIS bugging experts do work for the British or Americans, they re
often ordered not to tell Australia about their activities.

FILM - MI6 H.Q.ROSS COULTHART

This is the headquarters of Britain s MI6 in London.   It s a measure of
how close the British and Australian Secret Services are that ASIS officers
refer to this place as "Head Office".   Until recently, Australia sent its
top trainees to MI6 to learn the tradecraft, including Officer One.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

And undoubtedly by the most professional intelligence service in the
World.  The Brits are really good at that.Q: What sort of training do they
give you?A: Well, naturally one would ... would never talk about that in
any detail, but its pretty obvious the sorts of things you do, they range
from ... from using your intellect and your personality and what-not to
recruit agents and glean information from them right across to the other
side of the spectrum which is ah ... demolition work and coastal landings
and secret writing and a lot of pistol work and ... all sorts of things
like that.Q It all sounds very "Boy's Own Adventure" sort of stuff.A: Well
in a way I suppose it would, but you ... you're trained in those sorts of
things not because you're expected, particularly when you're on a
diplomatic cover, and that's usually what you go away under, to be using
those sorts of things every day.  You know, one hardly does many
demolitions around Sydney - so those things are just there in store in case
you need that at some time.Q: What was it like to be a bloke in his
twenties doing that sort of thing?A: Exciting.  And exciting not just in
the sense that you were riding a Harley Davidson down a deserted ocean
beach or something like that ... there was that sort of exhilaration in it
the Boys Own thing, there's a dimension of that and ... one should hardly
be ashamed of that .. but it was with a purpose, that you were doing this
to .. to rally all your skills and forces so that you should work for your
country in a very creative way.


FILM - ABC NEWS STORY ON SHERATON HOTEL RAID, 1983

ROSS COULTHART

But Officer One joined ASIS at an inauspicious time for the organisation.
In November 1983, in a now notorious training exercise, a number of
machinegun-toting ASIS trainees smashed their way into a room at
Melbourne s Sheraton Hotel - only to be caught by Police.

FILM - NEWS CONFERENCE WITH FOREIGN MINISTER BILL HAYDEN, 1983

BILL HAYDEN

Certainly there should hot have been a resort to force or a presentation of
what was supposed to be force to Members of the Parliament.

ROSS COULTHART
The incident fuelled an already deep-seated feud between the diplomats in
Foreign Affairs and the so-called ASIS spooks who share Australian
embassies under diplomatic cover.

FILM - CAIROROSS COULTHART

The same day as the Sheraton raid, Officer One began his posting as an ASIS
spy in Cairo.   His first meeting with one of our Embassy s  diplomats was
to be a bitter portent of things to come.


FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

He had this long cable that he had just received from Canberra outlining
what had happened at the Sheraton Hotel in Melbourne and of course we were
totally unknowing.  We walked into the room and I was introduced and he
held this long cable up and was slapping it with his hands saying 'Well
you're the sorts of ninnies I have to put up with here hey!' ... 'These are
the sorts of hopeless so and sos that you are!'

FILM - CAIROROSS COULTHART

Many Australian diplomats resented the ASIS presence in such a volatile
region.    There were considerable doubts about the benefits to Australia
in having spies in the Middle East.   In fact we re told one of the main
reasons the Cairo Station was established was to help British intelligence
- following a disastrous setback for MI6 in the Iraqi capital Baghdad.



FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

Our colleagues there were nabbed and the local intelligence service
followed their movements and tracked down many of their key agents.   And
it s said that our colleagues there from this friendly country were pulled
into a warehouse on the outskirts of the capital and they had arrayed
before them the various agents that they'd been running and those agents
were stripped and there were wires hanging from rafters in the warehouse
and they were all men ... and were strung up by wire around the testicles
and they were killed in front of the faces of the foreign operators and
they were told you lot better get out and don't ever come back here.

ROSS COULTHART

Whether ASIS sent a spy to Cairo as a favour to the British or not, Officer
One had big doubts it was worth the risk.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

Overall I d have to say I don t think we should ever have been there and
ah to a great degree we were really trying to contrive a role or justify a
role for ourselves.
FILM - BILL HAYDEN WALKING THROUGH CAIRO HOTEL FOYER IN 1984


ROSS COULTHART

He seemed to find some sympathy from the then Foreign Minister Bill Hayden.
On a visit to Cairo,  Hayden, as Minister responsible for the Secret
Service,  asked Officer One for a private briefing.

FILM - INTERVIEW WITH OFFICER #  1 IN SILHOUETTE

I was puzzled when he said well ... I mean... God mate what the hell is
ASIS doing in this bloody part of the world.  I said 'Well don't really ask
me ... there are stories.'  but you know its not really reassuring to have
your Minister come through ... because the Minister for Foreign Affairs is
in charge of ASIS ... to come through and ask you that question.  But
whatever, you know, we're here and we're doing what we are and we work
pretty hard at it and ah ... he did something which I'll never forget ...
which at the time I believe was really quite genuine he ... he said 'Well
mate ... you're here and doing what your doing but don't forget if you
...that . if you ever need anything I'm back there.  I'm always there.'  And
he slapped me on the back and gave me a hug.  I found it quite a moving
thing at the time.  I feel it was very genuine and I think it was.

ROSS COULTHART

But Officer One says some  foreign affairs diplomats in the Cairo Embassy
simply went too far in their hostility.   He alleges they nearly got him
and his assistant killed by deliberately blowing his cover - revealing his
real role to the Egyptians as an Australian spy.   He was tipped off by
Egyptian friends.


FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE


Some of those people came to me and warned me that these two Australian
officials were openly talking whilst travelling in embassy cars and ah on
other occasions about how we ll get that ASIS bastard out and that spy and
naming me ah....

Q:  What was said?A: Well that this bloke s a spook and we ll get him
out.Q:  And this was said in front of Egyptian officials?A: Yes
FILM - RE-ENACTMENT OF ASIS HQ - TELEX

ROSS COULTHART

Officer One cabled ASIS HQ in Canberra, appealing to his bosses to get the
diplomats under control before the entire ASIS station was blown.  He even
sent a message directly to Foreign Minister Hayden.   But his frantic
messages weren t acted on and the leaks continued.

FILM - PLO ON TRAINING EXERCISE

ROSS COULTHART

It was the mid eighties.   The Palestine Liberation Organisation was one of
the hottest intelligence targets in the Middle East.    Officer One was
running a well-placed PLO agent.   His reports went straight to the
American CIA.    It appears the Americans wanted his intelligence at almost
any cost.   Officer One claims things got so serious a CIA officer offered
to assassinate the Australian diplomat who was blowing his cover.


FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

He was amazed that something like this could happen and we worked fairly
closely, had a good relationship and ah ... yes he offered ah ...this is
not something that ah ... one enjoys alluding to ... he offered to bring
that situation with that official to a pretty sort of rapid termination.Q:
He offered to kill him, didn't he?A:Yes.  But we don't get into things like
that and ah ... so ah ... my immediate reaction without even thinking was
no ... please don't do that and so it wasn't done.
FILM - CAIRO

ROSS COULTHART

Officer One soon found out just how badly his cover was blown.   One night
returning home, he was beaten in an alleyway by thugs he suspects were from
Egyptian Intelligence.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

I was suddenly set upon by five or six people, blokes,  and pummelled and
bashed and nothing was stolen and one ah said in rather halting
English...ah.. It wasn t native English but anyhow how the message was you
get out you get out or we ll kill you.

INTERVIEW (Cont'd)      You can't run deep cover, sensitive ASIS operations in
that part of the world unless you have a good solid cover to fall back on
Um ... once that's withdrawn you just can't carry on.  So it was tense
because we were having to decide whether we could ah ... go out ...
particularly myself ... go out on any given night or whatever hour to meet
agents who are people who sometimes with positions of trust and ... great
trust ... and one has to be concerned about their ... their safety

ROSS COULTHART

His cover blown, Officer One was convinced he and his ASIS assistant were
in danger.    With the agreement of ASIS headquarters, he returned to
Australia.   where he discovered he was blamed for overreacting in Cairo
and not getting on with Embassy staff. It was suggested that his cover
wasn t really blown at all.  When he complained to the Intelligence Service
Ombudsman - the Inspector General of Intelligence and Security  - his
concerns were dismissed.  After months of unhappy battles with ASIS
management, Officer One quit the service in disgust.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

They failed to perform to protect their own officers in the field when
they came under fire, ironically from their own side.  They would
instinctively portray the officer concerned and this has happened on a
number of occasions this is why we are all lodging complaints - as nut
cases.
FILM - SWAN ISLAND

ROSS COULTHART

Unlike Officer One, Officer Two was trained here at Swan Island in
Melbourne s Port Phillip Bay.   It s here where ASIS officers do much of
their paramilitary training-  mastering the Service s complex coding and
filing systems which are identical to those in the British Secret Service,
how to survive an interrogation,  how to disable or kill an enemy.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

Frankly you never experience conditions as bad as you do on training.  The
idea is to make you make all the mistakes in training that you could ever
possibly make so that you know then hopefully what not to do overseas.  Um
.... the training course is very good.  I think the ... one exercise alone
requires the assistance of something like three hundred and eighty people.
It's an immensely  complicated exercise.  Bearing in mind ASIS is a very
small organisation and it probably only trains four ... four to six
officers a year and the training costs would probably exceed four or five
million dollars.

ROSS COULTHART (TO CAMERA)

Officer Two topped his course.   But, after ten years,  he feels as angry
and disillusioned as Officer One does about  our Secret Service.     His
story raises real concerns that in its zeal to be a major player in the
intelligence club with Britain and America ASIS compromises Australia s
national interest.   He also charges that ASIS management is missing vital
intelligence opportunities.

FILM - DELHI, INDIA

ROSS COULTHART

Officer Two was posted to Delhi in 1987 to be a "declared" intelligence
officer - known to friendly intelligence services, but still working under
a cover role as a diplomat.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

Well the real purpose was to liaise with the Indians but ... on top of
that... Australia was clearly very concerned with the prospects of the
Indians developing nuclear weapons.
FILM - INDIAN NUCLEAR PLANTS

ROSS COULTHART

Officer Two is also a scientific expert.  He had great success in prying
out India s nuclear secrets.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

We re seen as a very benign influence in the region in which ASIS
operates, which is the Pacific and in Asia and um... people will tell
Australians the sort of things they would simply never dream of telling the
Americans.
FILM - NEWS REPORT ON ALEXANDER BARBIY IN 1987

ROSS COULTHART


In December 1987, a diplomatic incident involving this young Russian
student - Alexander Barbiy - sparked the events which were to turn Officer
Two s time in New Delhi into the stuff of a cold war thriller.   Barbiy
walked into the Australian mission and asked to defect to Australia..

FILM - PRESS CONFERENCE

ALEXANDER BARBIY, 1987

And I gradually came to the conclusion that since I shouldn't change the
Soviet Union, I should change my place of resident.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE


A very nasty diplomatic situation ensued.After a period of a week or maybe
two weeks of negotiations. The student was given a visa for Australia and
left.   The upshot of this was that any Russian or bloc official in Delhi
who was thinking of getting out had a fairly good idea that Australians
would take.
FILM - NEW DELHI, INDIA

ROSS COULTHART

India s non-aligned status, but close friendship with the Soviets, made
Delhi a magnet for Eastern Bloc spies.  In 1988 the writing was on the wall
for the Soviet Empire.   And the Barbiy case signalled to many
disillusioned Eastern Bloc spies that Australia would take defectors.
Suddenly Officer Two s intelligence role changed.   He found himself an
unwilling gatekeeper, handling a traffic of disgruntled spies willing to
sell their country s secrets for a new life in Australia.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

I might as well have put a shingle out.

I think it must have been seven or eight months later ah I had a telephone
call from the Consul-General and subsequently advised me that an Iraqi, a
claimed Iraqi intelligence officer had a plan to defect to Australia.


FILM - SADDAM HUSSEIN AND SOLDIERS

ROSS COULTHART

This Iraqi spy was very close to Saddam Hussein.   His approach to
Australia came in early 1989, 18 months before Saddam Hussein invaded
Kuwait.   Officer Two realised that if this Iraqi could be persuaded to
work as an agent for Australia inside Iraq, his intelligence would be
highly valuable to the CIA.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

I think there's a ... a big problem in assuming that the big ... that the
big intelligence agencies such as the CIA have spies everywhere. They
frankly don't. The Americans had no assets, no life source assets in
Baghdad prior to the decision to invade Kuwait.  Um ... if this officer had
been ... if he had been handled properly its likely that he would have been
induced to perhaps ah ... to stay in place and provide information.  If he
had done so it is possible that he may have been in a position of access
prior to the Iraq decision to invade Kuwait and may have been able to give
sufficient prior warning to prevent that invasion from having taken place.

His information could have been unique and and of most critical value to
.... not just Australia but to the entire west.
ROSS COULTHART (TO CAMERA)

It s clear that in Delhi, as in Cairo, the presence of an ASIS spy was
bitterly resented by many in the Embassy .  To be fair, in a country like
India,  the diplomatic trouble caused by espionage and repeated requests
for defection can be enormous.    So, against Officer Two s recommendation,
Foreign Affairs decided to knock back the Iraqi s defection.

FILM - CAIRO

ROSS COULTHART

Then,  disaster.  Officer Two accuses a diplomat in the Embassy of an
indiscretion so serious that he s sure the potential Iraqi defector was
executed as a result.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

Q. What happened?A.  Um ... I understand from one of the senior officers
in the Mission that an officer in the Mission got on the telephone to
Canberra and deliberately blew the defection.

Q.  So rather than go through the normal coded message system ...A.  Oh
.... the coded message system went through anyway but it takes time but
you've got to write a very lengthy report, it's got to be fixed up so that
it can be sent securely, it's got to be sent and received and opened and
generally distributed.  Telephones as everyone knows are much easier than
writing a letter.  Um by the time the cable came through, which I think ...
it must have taken four or five hours, the telephone conversation had
taken place and the Foreign Affairs desk officer had a response ready which
rejected the requested defection.

Q.    So what you're saying is  that a potential Iraqi defector  was
discussed by Australian diplomats on an open telephone line? A.  That's
exactly what I was told Q.  What are the implications of talking on an open
telephone line about a potential defection?

A.  Well I think in this particular case given that the officer claimed to
have been KGB trained you could probably have measured his life span in
terms of days.Q.  So you think he was killed?A.  That would be my guess.
I'd be staggered if the telephone call hadn't been intercepted since it
came out of a major foreign mission in Delhi.
FILM - NEW DELHI

ROSS COULTHART


Australia quite literally showed this Iraqi the door.   Officer Two never
saw him again.

FILM - AFGHANISTAN WAR

ROSS COULTHART

Another country, another war.  It s 1989.   The withdrawing Soviet Army in
Afghanistan is still propping up the regime of President Najibullah.
Mujahadeen rebels are based over the border in neighbouring Pakistan.   The
next man to arrive at Officer Two s door was a Soviet trained Afghan  army
officer.   He d been running a terror campaign against the Mujahadeen in
the markets and border camps of Northern Pakistan.   Many innocent refugees
were killed.  Yet he had more luck getting to Australia than the
unfortunate Iraqi

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

He did have very strong political connections in Australia and I think
he's ... after hunger strikes and some considerable publicity on the part
of relatives in Australia he was allowed to come here.  I felt that it was
a mistake because during my investigations into the man and my interviews
with him I'd ascertained to my satisfaction that he'd been involved in ah
.... the forwarding of bombs ah ... through using refugee channels across
the borders of his country into a foreign country and ah  ... a bombing
campaign in which I expect peoples lives were lost or injuries were
sustained.  I was very ah ... upset at the thought that he would be allowed
into Australia as a matter of course

ROSS COULTHART (TO CAMERA)

But Officer Two soon found himself involved in a far riskier operation to
put Australia in the big league of Cold War espionage.    In an operation
which has remained secret until now, Officer Two organised the recruitment
and running of a high-ranking KGB-trained spy.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

He was from a Middle Eastern country but he was an intelligence officer.

He'd been trained by the KGB.  Well.... he claimed that and we subsequently
managed to verify this.  The Embassy Officer who'd made so much trouble
with the Iraqi was in hospital... in hospital, I think at that particular
stage and was unable to interfere with time.  Um... so the proper routine
processing of such a request was able to be made in full security.

ROSS COULTHART

As with other potential defectors,  Canberra knocked back this agent s
initial request for defection.    To protect this man, who s now living in
Australia, we can t reveal his nationality.    But, after some agonising he
agreed to spy for Australia on the promise he might eventually be allowed
to come and settle here.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

>From that point for a period of about 12 months he also provided
information of considerable value to the Australian Government and through
the Australian Government to other friendly foreign governments.

He blew the names of all their operatives ah... he blew high level policy
decisions between ah ... senior government figures to whom he had access to
through family links.  He was a source of considerable value ... ah.

Because the Americans had no sources in the country ... that was one of the
first things they asked me was "What had happened to their sources?"  And I
had to go back and tell them they'd all been shot.

Q. And this bloke was the only Western intelligence agent in this country?

A.  Effectively.

Q. Was this also the first time that ASIS had ever run a KGB trained block
officer?

A.  Yeah... it was the first time. There had been a couple of intelligence
officers being recruited, but this was the first case of a bloc
intelligence officer being recruited and run in place.  And it was
certainly the first case of any ... in thirty years that ASIS had ever had
to exfiltrate ... that is to say get an individual and his family away from
a country and back to Australia.

FILM  - DELHI HOTEL

ROSS COULTHART

Banned from using diplomats in operations, Officer Two used his wife and
secretary  to smuggle the agent out of  a top Delhi Hotel.    Following an
intricate plan - with back-ups in case anything went wrong, and
surveillance along the route  - the defector and his family were spirited
into a blacked out car and hidden over night in an apartment.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

If the fellow's colleagues had found out what was going on they would have
come looking for him with guns.  There is absolutely no doubt about that.
Absolutely no doubt.  Because one of these fellows colleagues went missing
and I think it was suspected of having been ... done a bunk form this
chap's Embassy previously he himself had gone out after him ... loaded for
bear.  They don't ... they don't mess around.
FILM - QANTAS JET LANDING

ROSS COULTHART

Bundled on to a direct QANTAS flight to Australia at the last minute,  the
man who d been one of the western alliance s top Middle East agents for
eighteen months made it  to Perth.   Today he s living safely in Australia
under a new identity.

FILM - OFFICER # 2 AND WIFE

ROSS COULTHART

But ironically the man who made it possible has found little peace back in
Australia.   Officer Two returned to a senior position in ASIS but within a
year, he and his wife found themselves under attack for a number of
security breaches, including criticism for using his wife in an operation.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

I would not do something like that again, I would not risk it.Q: You
wouldn't risk your family?A: I certainly wouldn't risk my family.  I didn't
expect to be promoted  or patted on the back or all those sorts of things.
But I certainly didn't expect to be subsequently villified.Q: The irony
was...A: The irony was that my wife subsequently was accused of being over
involved in operational work.  She was criticised in a sense for her
involvement in this case. I mean that's absolutely extraordinary.Q: In fact
that's been one the allegations against youA: Yes that's right.Q:How do you
feel about that?A:Very bitter.  Extremely bitter.  I asked her to be
involved in good faith because I needed help.  I thought that we owed it
.... owed this particular individual to give him the best possible chance of
arriving in Australia in one piece.  I was forbidden as a matter of policy
from using Mission staff so I ... I sought the assistance of my wife and
then ... it turns out that she was vilified for ... assisting.  That's
absolutely extraordinary.

FILM - INTERVIEW WITH OFFICER # 2'S WIFE IN SILHOUETTE

Q:      Did you husband ever say anything to you about what might happen if you
were caught by another intelligence service doing what you were doing?A.
Yes.  He told me that a lot of the things that could happen were not very
pleasant.  But I never questioned what he was doing because I've always
believed that he's done everything in the best interests of Australia.
ROSS COULTHART

The investigations went on for two years.  Eventually the Service s
allegations against Officer Two were found to be overwhelmingly baseless
and their internal enquiry "biased".

FILM - LETTER FROM IGIS TO OFFICER # 2 'S WIFE

ROSS COULTHART

The Inspector-General of the Intelligence Services ordered ASIS to pay
compensation for ruining its agent s career and made an official apology to
his wife.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

I've read stories, you know Kafka-like stories of the ... the impact on
families of the purges in the Soviet Union during the late '30's, the
concept of secret denunciations and secret trials and people being forced
to implicate themselves through testimony without being advised of charges.
This is how we feel ... we've been through it.  We know what it is like.
We've been there, we've done it.  It's terrible, believe you me

ROSS COULTHART

And their trials weren t over.     Last year Officer Two s home was burgled
under very suspicious circumstances.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

It turned out that every paper, every drawer had been opened, every piece
of paper had been taken out and left in neat piles right down to my
marriage certificate which had been taken from its folder and left unfolded
on the floor. Now I should say that I don't believe for a second that the
Service conducted a break-in through legal channels.  They wouldn't get a
warrant.  But I think it's certainly possible that individuals connected
with this case may well have found it a desirable idea to seize whatever
papers....

ROSS COULTHART

The Secret Service s treatment of its officers highlights the fact that
ASIS operates virtually as a law unto itself.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

I think it s simply because the intelligence service for many decades,
namely four, has not been subject to the sort of scrutiny that any
intelligence service must be subjected to.   And along the way, as things
have gone wrong, as they always will in any human organisation, instinctive
reaction of management has been to cover up and almost always define one or
more scapegoats.








ROSS COULTHART (TO CAMERA)

When the spies start saying Australia's Secret Service needs to be made
more accountable then we ve got a problem.    Our domestic intelligence
service, ASIO has to report annually to Parliament.   ASIS doesn t.   This
resistance to  scrutiny has always been justified on the grounds that we
need to keep the confidence of our friendly cousins: Britain's MI6 and the
American CIA.

FILM - HONG KONG - LISTENING ANTENNAE IN HONG KONG HARBOUR - AERIALS

ROSS COULTHART

That intelligence cringe has drawn ASIS into compromising foreign
adventures like the ones detailed tonight by our disaffected officers.

FILM - HONG KONG

ROSS COULTHART

Why risk our vital growing relationship with Beijing by doing the dirty
work for a Britain actively retreating from our region?  What did Australia
really stand to gain by spying for the British and the Americans in
Argentina, India and the Middle East?   ASIS won t tell us.  Ironically one
principle of Western intelligence we haven t slavishly adopted is
accountability.

FILM - U.K. PARLIAMENT

ROSS COULTHART

Both the CIA and MI6 have now come in from the Cold with  reforms making
them more accountable to the Congress or Parliament.

FILM - QUEEN ELIZABETH'S SPEECH TO THE U.K. PARLIAMENT STATE OPENING
My Government will introduce legislation to place the Secret Intelligence
Service and Government communications headquarters on a statutory basis and
to make further provision for the oversight and accountability of them and
the security service.

FILM - "BUG PROOF" HEARING ROOM, U.S. CONGRESS SIRC

ROSS COULTHART

For years, the United States  Senate Intelligence Review Committee made up
of selected politicians has been able to hear details of the most secretive
operations engaged in by the CIA -  a useful curb on the previously
notorious activities of the agency.

FILM - AUSTRALIAN FEDERAL PARLIAMENT

ROSS COULTHART


But here in Australia, there s precious little about ASIS that isn t
secret.  The Minister in charge of Australia s secret service, Senator
Gareth Evans, has repeatedly refused to comment in Parliament when
questioned about these matters by the Federal Opposition.

FILM - SEN. GARETH EVANS IN PARLIAMENT

Might I say simply this.  It's the long established practice of successive
Australian Governments to make no comment on matters relating to ASIS -
however much we might like to be able to clear the air on this occasion,
our position has to be that the Australian Government simply won't comment
on this substantive allegations.  Might I say more generally though that a
number of enquiries have of course reported on ASIS in recent years and I
have confidence in the present comprehensive arrangements for its oversight
including the establishment of the office of Inspector General of
Intelligence and Security that was established by the Government.

FILM - COMPUTER DATABASE

ROSS COULTHART

Most Australian Government files like these are subject to  strict Privacy
legislation.  But perhaps the most concerning aspect for all Australians
should be that ASIS secretly holds tens of thousands of files on Australian
citizens.   A database completely outside Privacy laws.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

Now these things are never scrutinised.   A lot of information that goes
on to these cards will just be hearsay.


FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

If ASIS provided information to ASIO which led to the refusal of a visa or
a job, my understanding is that the ah...the individual would not be told
that on the grounds that he would not realise the information came from
ASIS.Q:  So information could be held of a deleterious nature on an
Australian citizen inside ASIS and they wouldn t have any, they wouldn t
know anything about it.A: No....No come back at all.

FILM - INTERVIEW WITH OFFICER # 1 IN SILHOUETTE

These people know that they'll never be scrutinised, they'll never be
disciplined and that's the risk.  You see what needs to be understood that
in ... in a democracy when you have an organisation that's exempt from the
law to that degree and is not being regularly scrutinised and no it has
never been disciplined you have in effect the beginnings of a thought
police. Now that seed is already germinated in ASIS.  Its not a nice thing
to say and to say it is disrespectful to a large number of good people who
work in ASIS and a large number of very good people who work in Foreign
Affairs alongside them but that seed has germinated and there's a plant
emerging.  That's what we're worried about.  That's what we're fighting for.

FILM - FEDERAL PARLIAMENT

ROSS COULTHART

The former spies, who ve broken the ASIS code of secrecy tonight, risk
being pilloried for their actions.   There s no doubt though their concerns
about ASIS go well beyond their personal grievances to fundamental
questions of accountability and national interest.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

If it s to operate effectively, it must have secrecy of its actions.   I
don t dispute that for a minute.  But it must also remain absolutely within
the realms of propriety and where improprieties exist and come to light,
they must be seriously dealt with.

ROSS COULTHART

Officer Two, takes solace from one of his heroes:  the American physicist J
Robert Oppenheimer.    During the McCarthyist purges of the 1950 s
Oppenheimer spoke out against the threat to democracy with words which
should serve as a timely reminder to all Australians.

FILM - INTERVIEW WITH OFFICER # 2 IN SILHOUETTE

We believe no man or group of men adequate enough or good enough to
operate without scrutiny or without criticism.  We know that the only way
to be free to identify impropriety is to be free to inquire.  And that only
in secrecy will ignorance flourish and subvert' and I think that that last
sentence basically says it all ... only in secrecy will ignorance flourish
and subvert.
ANDREW OLLE (STUDIO)

However strong the principles they're standing on, those two old ASIS hands
have taken a big risk in speaking out tonight.

Our story was produced by Mark Corcoran, with Ross Coulthart the reporter.



ANDREW OLLE (Cont'd)

Next week, we're staying very much in the world of intrigue.  We unmask the
shadowy figures who pushed Russian fire-brand Vladimir Zhirinovsky from
obscurity onto the international stage.

"Wild Bear" ... next Monday.

Goodnight.

CLOSING THEME AND CREDITS

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