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Information Warfare


Military Thinks Cyberwarfare is a Pandora's Box


Does that mean there is still Hope?

WASHINGTON - During the conflict last spring with Yugoslavia, the Pentagon
considered hacking into Serbian computer networks to disrupt military
operations and basic civilian services. But it refrained from doing so,
according to senior defense officials, because of continuing uncertainties
and limitations in the emerging field of cyberwarfare.

''We went through the drill of figuring out how we would do some of these
cyber things if we were to do them,'' a senior military officer said. ''But
we never went ahead with any.''

As computers revolutionize many aspects of life, military officials have
stepped up development of cyberweapons and spoken ominously of their
potential to change the nature of war. Instead of risking planes to bomb
power grids, telephone exchanges or rail lines, for example, Pentagon
planners envision soldiers at computer terminals silently invading foreign
networks to shut the electrical facilities, interrupt phone service, crash
trains and disrupt financial systems. But such attacks, officials say, pose
nettlesome legal, ethical and practical problems.

Midway through the war with Yugoslavia, the Defense Department's top legal
office issued guidelines warning that misuse of cyberattacks could subject
U.S. authorities to war crimes charges. It advised commanders to apply the
same ''law of war'' principles to computer attack that they do to the use of
bombs and missiles. These call for hitting targets that are of military
necessity only, minimizing collateral damage and avoiding indiscriminate
attacks.

Defense officials said concern about legalities was only one of the reasons
U.S. authorities resisted the temptation to, say, raid the bank accounts of
Yugoslav President Slobodan Milosevic. Other reasons included the untested or
embryonic state of the U.S. cyberarsenal and the rudimentary or decentralized
nature of some Yugoslav systems, which officials said did not lend themselves
to computer assault.

U.S. forces did target some computers that controlled the Yugoslav air
defense system, the officials said. But the attacks were launched from
electronic jamming aircraft rather than over computer networks from
ground-based U.S. keyboards.

No plan for a cyberattack on Yugoslav computer networks ever reached the
stage of a formal legal assessment, according to several defense officials
familiar with the planning. And the 50 pages of guidelines, prepared by the
Pentagon general counsel's office, were not drafted with the Yugoslav
operation specifically in mind.

But officials said the document, which has received little publicity,
reflected the collective thinking of Defense Department lawyers about
cyberwarfare and marked the U.S. government's first formal attempt to set
legal boundaries for the military's involvement in computer attack
operations. It told commanders to remain wary of targeting institutions that
are essentially civilian, such as banking systems, stock exchanges and
universities, even though cyberweapons might provide the ability to do so.

In wartime, the document advised, computer attacks and other forms of what
the military calls ''information operations'' should be conducted only by
members of the armed forces, not civilian agents. It also stated that before
launching any cyberassaults, commanders must carefully gauge potential damage
beyond the intended target, much as the Pentagon now estimates the number of
likely casualties from bomb attacks.

While computer attacks may appear on the surface as a cleaner means of
destroying targets - with less prospect for physical destruction or loss of
life than bombs - Pentagon officials say such a view is wrong. By penetrating
computer systems that control communications, transportation, energy and
other basic services in a foreign country, cyberweapons can have serious
cascading effects, disrupting not only military operations but civilian life,
officials say.

Instead of turning cyberassaults into another arms control issue, the
administration prefers to treat them internationally as essentially a law
enforcement concern. U.S. officials have supported several efforts through
the United Nations and other groups to facilitate international cooperation
in tracking computer criminals and terrorists.

For all the heightened attention to cyberwarfare, defense specialists contend
that there are large gaps between what the technology promises and what
practitioners can deliver. ''We certainly have some capabilities, but they
aren't what I would call mature ones yet,'' a high-ranking U.S. military
officer said.

The full extent of the U.S. cyberarsenal is among the most tightly held
national security secrets. But reports point to a broad range of weapons
under development, including the use of computer viruses or ''logic bombs''
to disrupt enemy networks, the feeding of false information to sow confusion
and the morphing of video images onto foreign television stations to deceive.
Last month, the Pentagon announced it was consolidating plans for offensive
as well as defensive cyberoperations under the four-star general who heads
the U.S. Space Command in Colorado Springs.

But complicating large-scale computer attacks is the need for an
extraordinary amount of detailed intelligence about a target's hardware and
software systems.

''A recurring theme in our discussions with military operators is, well, if
we can drop a bomb on it, why can't we take it out by a computer network
attack,'' said a senior Pentagon lawyer specializing in intelligence. ''Well,
you may be able to. However, you've got to go through a few hoops and make
sure that when you're choosing an alternative method, you're still complying
with the law of armed conflict and making sure collateral damage is
limited.''

In their guidelines document, titled ''An Assessment of International Legal
Issues in Information Operations,'' the Pentagon's lawyers warned of such
unintended effects of computer attacks as opening the floodgates of a dam,
causing an oil refinery in a populated area to explode in flames or
triggering the release of radioactivity. They mentioned the possibility of
computer attacks spilling over into neutral or friendly nations and noted the
legal limits on deceptive actions.

''It may seem attractive for a combatant vessel or aircraft to avoid being
attacked by broadcasting the agreed identification signals for a medical
vessel or aircraft, but such actions would be a war crime,'' said the
document, which was first reported last week by William Arkin, a defense
analyst, in a column on The Washington Post's on-line service. ''Similarly,
it might be possible to use computer morphing techniques to create an image
of the enemy's chief of state informing his troops that an armistice or
cease-fire agreement had been signed. If false, this also would be a war
crime.''

The document also addressed questions about whether the United States would
be any more justified in using cyberweapons if a foreign adversary first
hacked into U.S. computer networks. The answer: It depends on the extent of
damage. One complicating factor, the defense lawyers wrote, is the difficulty
of being certain about the source and intent of some cyberattacks, whose
origin can easily be disguised.

International Herald Tribune, November 9, 1999


The City


London Doesn't Need the Euro, Thank You


The pound looks the euro in the face.

THE battle over whether Britain should join the single European currency was
thrown wide open last night when the City of London said it was thriving
outside the euro zone.
One of the main arguments of euro-enthusiasts has been that London will lose
influence as a world financial centre if Britain refuses to scrap the pound
and sign up to monetary union. But Lord Levene, who stands down as Lord Mayor
of London on Friday, said yesterday that far from losing business, the City
had prospered despite Britain staying outside the single currency.

He said campaigners for the single currency would no longer be able to use
the City as an argument for signing up. Earlier this year, Lord Levene was
among the leading figures in finance and business who voiced fears that
London could lose out as a result of Britain not joining its main EU
competitors, including France, Germany and Italy, in adopting the euro.
In February, after a tour of European capitals, he gave warning that there
was widespread expectation that London would lose ground to Frankfurt, where
the European Central Bank, which runs the euro, is based. He said then that
the City was looking for a positive sign that Britain would join the euro
"sooner rather than later. In four or five years, London could start to lose
out if the UK's entry into the euro is delayed".

But he acknowledged yesterday that since the new currency was launched on Jan
1, London had "done more than hold its own". The first 10 to 11 months of the
single currency were probably the most critical period for the City, but the
impact of the euro had been positive.
He said in the first half of this year, trading in shares in London of
companies within the 11 euro-zone countries had increased by 59 per cent
compared with the same period last year. Lord Levene made clear there was
still a general expectation among financial institutions and other EU
countries that Britain would hold a referendum on joining the single currency
soon after the next election.

He said a formal declaration that Britain would stay out permanently would
have a serious impact on the City. William Hague, the Tory leader, has been
careful to avoid saying "never" despite ruling out joining the euro in the
lifetime of the next Parliament.

But Lord Levene's acceptance that the City could continue to prosper even if
the present position continued for some time is a serious blow for the
Britain in Europe campaign. He said Britain's membership of the euro was not
the key factor in whether banks and financial institutions from elsewhere in
Europe and around the world continued to do business in London.

London had other advantages, he said. It was increasingly regarded as
"offshore" from mainland Europe, it had the English language, a "critical
mass" of financial institutions, and business people liked living in London.
"It is the Wimbledonisation of the City. We have the best playing field, but
few of the finalists are British nationals."

He contrasted London's booming financial sector - which ranks alongside New
York and Tokyo - with its European rivals. "There are one million people
working in financial services in London. The total population of Frankfurt -
men, women and children - is 600,000."

As Lord Mayor, Lord Levene is effectively the City's chief spokesman and is
an influential figure. He has worked as an adviser to the present Government
and the previous Tory administration and now heads the investment banking
section of Deutsche Bank in London. His comments are a big boost for those
who have long argued that Britain can have a viable economic future outside
the euro.

Francis Maude, the Tory Treasury spokesman, said Lord Levene had "knocked on
the head once and for all" the idea that the City would suffer if Britain did
not join the single currency. "It's about time that Tony Blair admitted that
Britain can prosper in Europe but keep the pound," said Mr Maude.

Earlier, Gordon Brown, the Chancellor, who has made clear he will not be
bounced into joining the single currency, underlined Britain's growing
economic links with the United States. He announced a link-up between the
Massachusetts Institute of Technology and Cambridge University, aimed at
developing technology entrepreneurs in Britain.

The warmth of Mr Brown's welcome for American investment and expertise was
seen at Westminster as a further sign that he intends to keep open his
options on the euro.
The Government yesterday demonstrated its determination to protect the City's
leading role outside the euro zone by blocking plans for a European-wide tax
on interest from savings. At a meeting in Brussels, Britain was accused of
adopting an "unfair" approach to the proposed tax, which is aimed at
preventing tax evasion across Europe.

The London Telegraph, November 9, 1999

------------------------------------------------------------------------

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