-Caveat Lector-

     http://www.nytimes.com/books/01/04/29/reviews/010429.29findert.html

   April 29, 2001


        BOOKS

        BUGGING THE WORLD

        An investigative reporter traces the history
        of America's most secretive spy agency.

        By JOSEPH FINDER


  Early in 1964 the United States Embassy in Moscow discovered to its
  horror that it was infested with Soviet bugs. For a dozen years or so the
  Kremlin had been able to eavesdrop on every conversation and to learn
  about every top-secret cable sent between Moscow and Washington.

  Stunned, the State Department ordered a full damage assessment. Its
  findings, contained in a document declassified just this year, were even
  more astonishing: this grave compromise, the worst intelligence breach in
  the entire cold war, hadn't made any difference. Not only had it not
  altered Soviet behavior to our detriment, but it might even have
  accomplished something positive by reassuring the Soviets that we really
  weren't planning to attack them.

  Here we are almost four decades later, the cold war over 10 years ago,
  and you'd think such spy business would have gone the way of the fallout
  shelter and Ipana toothpaste. Yet our two gravest diplomatic crises of
  the last year were both precipitated by matters of espionage. When the
  veteran F.B.I. agent Robert Hanssen was arrested in February and charged
  with spying for Russia, the circumstances seemed jarringly anachronistic:
  dead drops of top-secret documents under a wooden footbridge in a park,
  white tape marks on signs, payments made in cash and diamonds --
  everything, it appeared, but spools of microfilm concealed in hollowed-
  out pumpkins. But there was nothing dated about the secrets Hanssen is
  accused of selling to the Russians, which concerned the newest and most
  sophisticated methods of technical surveillance developed by the National
  Security Agency. And the Navy EP-3E Aries II spy plane that collided with
  a Chinese fighter jet near Hainan island a few weeks ago was, it turns
  out, engaged in electronic surveillance on behalf of the same National
  Security Agency.

  The mysterious organization that connects these two incidents is the
  largest, best-financed and arguably most important spy agency in the
  world -- and the least known. Created in 1952 in a top-secret presidential
  order issued by Harry Truman, the N.S.A. (its very existence so highly
  classified that Washington insiders long quipped that its initials stood
  for ''No Such Agency'' or ''Never Say Anything'') was cloaked in secrecy
  until the 1982 publication of James Bamford's landmark account, ''The
  Puzzle Palace.'' His book, by far the most comprehensive and authoritative
  account of the agency, quickly became a classic.

  Now Bamford, an investigative journalist and a former producer with ABC
  News, brings us ''Body of Secrets,'' an examination of the National
  Security Agency from its founding to the present. And he has done it
  again. Far more than an update of his first book, ''Body of Secrets'' is
  every bit as impressive an achievement. Not only is this the definitive
  book on America's most secret agency, but it is also an extraordinary
  work of investigative journalism, a galvanizing narrative brimming with
  heretofore undisclosed details.

  The N.S.A. is the Vatican of what the spy trade calls Sigint (for signals
  intelligence), information obtained from intercepting, and often
  decrypting, voice or electronic communications. It has, accordingly, long
  been disdainful of the C.I.A., its rival in the intelligence community,
  for its reliance on old-fashioned cloak-and-dagger, spy-versus-spy
  techniques, including human intelligence, or Humint. (''The C.I.A. is good
  at stealing a memo off a prime minister's desk,'' scoffed one former
  N.S.A. director, ''but they're not much good at anything else.'')

  Sigint tends to be much more highly esteemed than Humint among our spy-
  watchers. Some of America's greatest wartime victories were the result of
  signals intelligence. By breaking Japan's ciphers during World War II,
  the United States was able to learn in advance of Japan's plans to invade
  Midway Island -- and thus to inflict heavy losses on the Japanese Navy and
  shorten the war. Britain's success in cracking Germany's Enigma cipher
  machine enabled the Allies to detect the location of German U-boats and
  thus achieve a victory in the Battle of the Atlantic.

  But once the war ended and Washington turned its attention to the Soviet
  Union, it found that all the Kremlin's cipher systems were unreadable. The
  Sigint war suddenly became more important than ever. Throughout the
  1950's, in a highly risky series of sorties, the N.S.A. sent
  reconnaissance bombers and other spy aircraft into Soviet airspace to
  record radar signals and ferret out holes in the Soviet Union's air
  defenses. The Soviets did not hesitate to shoot the planes out of the sky;
  some 200 Americans lost their lives.

  When the Soviets shot down an American U-2 reconnaissance plane in 1960,
  Bamford has found, President Dwight D. Eisenhower was so determined to
  conceal his role in the fiasco -- he had actually micromanaged the program
  from the Oval Office'' -- that he explicitly ordered his cabinet officers
  to lie under oath to Congress about his involvement. This was a clear case
  of suborning perjury that, had it been discovered, might well have led to
  Eisenhower's impeachment.

  Intelligence, of course, is only as good as the uses to which it is put,
  and politics often trumps facts. During the war in Vietnam, the N.S.A.'s
  careful estimates, which indicated that the number of enemy troops was far
  greater than the Defense Department wanted to admit, were much more
  accurate than those of any other American intelligence agency. Yet the
  Pentagon -- in particular, Gen. William C. Westmoreland's command in
  Vietnam -- was bent on convincing both high-level policy makers in
  Washington and the American public that the war was eminently winnable. So
  it chose to ignore the N.S.A.'s data.

  Where ''Body of Secrets'' is weakest, I think, is in its account of the
  most horrific incident in the N.S.A.'s history, the assault on the spy
  ship Liberty a few miles off the Sinai peninsula during the 1967 Middle
  East war. On orders from the Joint Chiefs of Staff, the N.S.A. had sent
  the Liberty into the war zone to collect intelligence on the presence of
  Soviet troops and weapons in Egypt. On the afternoon of June 8, 1967, the
  Liberty was attacked by Israeli forces; 34 Americans were killed, 171
  wounded. Was it, as Israel maintained, a ''tragic accident''? Or was it,
  as conspiracy theorists and some of the ship's survivors insist, a
  coldblooded and deliberate action by the Israelis in order to eliminate
  evidence of damaging information the Liberty had intercepted?

  Rather too credulously, Bamford sides with the conspiracy theorists. He
  argues that the Israelis were attempting to cover up a gruesome mass
  murder by Israeli soldiers of some 400 Egyptian P.O.W.'s at the Sinai
  town of El Arish. Israel, Bamford claims, acted because it was convinced
  that the N.S.A. ship was recording intelligence on this massacre.
  ''Israeli soldiers were butchering civilians and bound prisoners by the
  hundreds,'' he writes, ''a fact that the entire Israeli Army leadership
  knew about and condoned.'' He charges, too, that the White House and
  Congress ''covered up'' the facts of the attack. But is it really possible
  that such an explosive secret could have been kept under wraps for so long
  by the Johnson administration, the United States Congress and all of the
  famously fractious Israeli Army leadership?

  And what serious evidence is there that a massacre of 400 Egyptians really
  took place? Bamford's own proof seems rather slender. He cites, for
  instance, the eyewitness testimony of an Israeli journalist, Gabi Bron.
  Bamford writes: ''Bron saw about 150 Egyptian P.O.W.'s sitting on the
  ground, crowded together with their hands held at the backs of their
  necks. 'The Egyptian prisoners of war were ordered to dig pits and then
  army police shot them to death,' Bron said.'' The implication here is that
  150 Egyptians were slaughtered. Yet the journalist's full account actually
  states, ''I saw five prisoners killed this way'' -- a brutal war crime if
  true, yes, but of quite a different magnitude.

  It hardly seems plausible that Israel would deliberately attack an
  American ship, killing dozens of American sailors, risking a confrontation
  with a superpower and its only ally -- in short, perpetrating one massacre
  in order to cover up another. Perhaps Bamford's analysis has been skewed
  by his palpable distaste for the Israeli state: ''Throughout its history,
  Israel has hidden its abominable human rights record behind pious
  religious claims,'' he writes. ''Critics are regularly silenced with
  outrageous charges of anti-Semitism.'' And: ''No one in the weak-kneed
  House and Senate wanted to offend powerful pro-Israel groups and lose
  their fat campaign contributions.''

  By the end of the Vietnam War, the N.S.A.'s staff had exploded to 95,000,
  five times that of the C.I.A. It had its own army, navy and air force,
  listening posts around the world, a fleet of satellites in space and
  seemingly unlimited financing. Yet its darkest, most closely held secret,
  Bamford reports, was that for decades, since the agency's birth, it had
  been unable to crack a single major Soviet cipher. Not until 1979 was the
  N.S.A. finally able to decrypt Russian voice communications and eavesdrop
  on the conversations of Soviet leaders talking in their limousines.

  The N.S.A. had no such difficulty keeping Americans under surveillance,
  a blatant violation of its charter. From its earliest days it had been
  illegally spying on United States citizens, Bamford notes, monitoring all
  telegrams sent to and from the United States under the auspices of a
  program code-named Shamrock. In 1967, the N.S.A. began watching numerous
  Americans (including such dire threats to national security as Joan Baez
  and Jane Fonda). Although such domestic surveillance has been terminated,
  Bamford writes, the N.S.A. is now engaged in a huge global eavesdropping
  operation, linking a network of spy satellites from the United States,
  Britain and New Zealand through a software package called Echelon. This
  program attempts to filter all of the world's signals traffic using lists
  of names and key words, in order to identify terrorist threats, illegal
  arms deals, narcotics trafficking and the like. Unsurprisingly, Echelon
  has given rise to all sorts of paranoid fantasies, convincing people
  around the world that their every phone conversation, fax or e-mail
  message is being monitored by an all-powerful spy agency in the sky.
  Bamford, no apologist for the N.S.A., believes this isn't so. He details
  the many hoops through which the agency must jump to get permission to
  pursue an American citizen, a process that leaves a wide array of
  bureaucratic trails.

  Moreover, even if the N.S.A. had the resources, and the desire, to listen
  in on everyone's phone conversations and to read everyone's e-mail, it is
  rapidly losing the ability to do so. This is the N.S.A.'s final dirty
  little secret: the explosion of digital communications, powerful
  encryption software and buried fiber-optic cable has made the agency's job
  nearly impossible. Military communications no longer bounce off microwave
  towers and spill into the ether, ripe for the picking, but instead zip
  along the filaments of fiber-optic cables. Drug traffickers now use
  encrypted digital cell phones. When India stunned the world by carrying
  out nuclear tests in May 1998 in defiance of a longstanding moratorium,
  the N.S.A. (and thus Washington) was caught unawares, one of the most
  remarkable intelligence failures of the past decades. The reason: India's
  defense establishment had begun using digital encryption that defeated the
  N.S.A.'s attempts to listen in. As more than one N.S.A. critic has pointed
  out, technology, once the N.S.A.'s friend, has now become its enemy.

  So the agency has begun to rely more and more on a covert N.S.A./C.I.A.
  unit called the Special Collection Service, which specializes in black-bag
  jobs, planting bugs in computer networks, bribing code clerks. It's the
  ultimate irony that the agency, which was founded on the premise that the
  age of the human spy was over, and which never attempted to hide its
  contempt for the C.I.A., must now turn for its salvation to the good old-
  fashioned cloak and dagger.

-------
  Joseph Finder writes frequently about intelligence. His most recent novel
  is "High Crimes."

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