France opens US espionage case

Wednesday, July 5, 2000

EUROPE | The French government has opened judicial investigations into claims
that the United States and other allies are using a global surveillance
network to conduct espionage.

The espionage, say French authorities, is used to assist U.S. business firms
in garnering information that could help them win lucrative contracts over
European rivals.

A decision was announced shortly before members of the European Parliament
were due to decide Wednesday whether a commission should investigate whether
the rights of Europeans are being infringed by the global system, called
"Echelon."

The global system, with listening posts in the U.S., Great Britain,
Australia, Canada and New Zealand, is reportedly capable of intercepting most
electronic transmissions, including email, cellular telephone calls, and even
faxes as well as regular telephone conversations.

Both the U.S. and Britain have denied conducting commercial espionage through
Echelon. The system, run by the National Security Agency, was set up during
the Cold War, sources say.

French state prosecutor Jean-Pierre Dintilhac will undertake a preliminary
investigation into the workings of the network, a spokesman announced
Tuesday, adding that the probe would not necessarily lead to legal action.

At his request, France's counter-intelligence organization, DST, reportedly
carried out a preliminary investigation into whether the monitoring could be
construed as having been "harmful to the vital interests of the nation."

Some French lawmakers called for the inquiry, saying French citizens and
companies were being harmed by Echelon.

Earlier this year Justice Minister Elisabeth Guigou told the French
parliament that Echelon apparently had been used to spy on commercial rivals
to major American corporations involved in bidding wars.

She urged French businesses to be especially alert, and said vital
information should never be contained in communications, especially those
transmitted via satellite.

European lawmakers in Strasbourg are due to decide today on what to do about
Echelon, which one French member has dubbed an "Anglo-Saxon Calvinist"
conspiracy against Europe.

Some members of the European Union parliament said Echelon was responsible
for the European consortium Airbus losing out to Boeing in a bidding war for
$6 billion worth of aircraft for the Saudi Arabian national carrier in
1992-93.

And, they say, the French communication firm Thomson-CFS lost a radar
contract in Brazil two years later to the American Raytheon Corp., again
allegedly after the NSA intercepted communications relating to the deal.

Former CIA director James Woolsey, has confirmed that companies suspected of
bribery and corruption and sanctions-busting have been monitored.

He said Airbus officials had been discovered offering bribes to Saudi
officials at the time the aircraft contract was being considered

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