>From http://www.newsweek.com/nw-srv/printed/us/na/na0813_1.htm



'The Penetration Is Total'
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CIA analysts find shocking evidence that Chinese spies have cracked even
the most secret weapons labs
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The news was worse than the CIA had imagined. Last week, in response to
recent reports that China may have stolen nuclear secrets from Los Alamos
and other U.S. weapons labs, President Clinton ordered a preliminary
"damage assessment" to determine just how much Beijing knows about the
American nuclear program. CIA analysts had already pulled together
intelligence data gleaned from U.S. espionage against China and now began
poring through it for clues. It wasn't easy. The material was rich in
detail: it included years' worth of communications intercepts and
revelations from a 1995 Chinese defector who worked on the Chinese nuclear
program and spilled to his U.S. handlers. But most of the data had been
languishing unread in intelligence-agency computers�for years. Some hadn't
even been translated from Chinese.

NEWSWEEK has learned that when the CIA showed the material to a team of top
nuclear-weapons experts, they "practically fainted." Chinese scientists
routinely used phrases, descriptions and concepts that came straight out of
U.S. weapons labs. "The Chinese penetration is total," says an official
close to the investigation. "They are deep, deep into the labs' black
programs."

U.S. officials believe that China may have acquired design information over
the last two decades about seven U.S. nuclear warheads, including the
neutron bomb created in the early 1970s. They may also have stolen secrets
about U.S. efforts to devise a nuclear weapon tailored to create an
electromagnetic pulse�a man-made lightning bolt that would short out
anything in an enemy nation that uses electricity.

The government's damage-assessment team is now trying to figure out who
could have given the secrets to Beijing. They do not believe it was a
foreign visitor to the labs, or leaks through U.S. allies�none had access
to the closely guarded material. Which leaves an unsettling possibility:
"This was done by American citizens," says one source close to the
investigation. Yet officials say only a handful of top insiders at the labs
and the Energy Department even knew about some of the secret programs,
which has left the close-knit nuclear community wondering if a colleague
could have done the unthinkable. (Security breaches aren't the only way
China has acquired U.S. nuclear secrets. NEWSWEEK has learned that Beijing
recently got hold of two U.S. cruise missiles that failed to detonate
during last fall's retaliatory attack on terrorist Osama bin Laden in
Afghanistan. U.S. intelligence agencies want to know if the Chinese have
attempted to copy the weapon's sophisticated guidance and avionics
technology.)

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'The Penetration Is Total': �� page 2

Why did it take the intelligence community so long to realize they had a
debacle on their hands? According to one official, though U.S. spy agencies
use a dazzling array of technical wizardry to collect vast stacks of raw
intelligence data, they don't have enough analysts to make sense of it all.
And sources say the American nuclear-weapons program is so closely guarded
that most analysts aren't allowed to know the details. Without a grasp of
the technology and its arcane lingo, the analysts didn't know what warning
signs to look for as they pored over Chinese intelligence reports�and may
have missed a disaster that was under their noses.

John Barry and Gregory L. Vistica

Newsweek, March 29, 1999
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