http://www.guardian.co.uk/uk_news/story/0,3604,496820,00.html



Worldwide spying network is revealed

MEPs confirm eavesdropping by Echelon electronic network

Stuart Millar, Richard Norton-Taylor and Ian Black
Saturday May 26, 2001
The Guardian

For years it has been the subject of bitter controversy, its existence
repeatedly claimed but never officially acknowledged.

At last, the leaked draft of a report to be published next week by the
European parliament removes any lingering doubt: Echelon, a shadowy, US-led
worldwide electronic spying network, is a reality.

Echelon is part of an Anglo-Saxon club set up by secret treaty in 1947,
whereby the US, UK, Canada, Australia, and New Zealand, divided the world
between them to share the product of global eavesdropping. Agencies from the
five countries exchange intercepts using supercomputers to identify key
words.

The intercepts are picked up by ground stations, including the US base at
Menwith Hill in North Yorkshire, and GCHQ's listening post at Morwenstow in
Cornwall.

In the cold war, eavesdropping - signals intelligence, or Sigint as it is
known in the trade - was aimed at military and diplomatic communications.
Helped by increasingly sophisticated computers, it has now switched to
industrial, commercial targets - and private individuals.

Echelon computers can store millions of records on individuals, intercepting
faxes, phone calls, and emails.

The MEP's report - which faced opposition from the British and American
governments and their respective security services - was prompted by claims
that the US was using Echelon to spy on European companies on behalf of
American firms.

France, deeply suspicious of Britain's uniquely close intelligence links with
the US, seized on reports that Echelon cost Airbus Industrie an �8bn contract
with Saudi Arabia in 1994, after the US intercepted communications between
Riyadh and the Toulouse headquarters of Airbus - in which British firms hold
a 20% stake.

The MEPs admitted they had been unable to find conclusive proof of industrial
espionage. The claim has been dismissed by all the Echelon governments and in
a new book by an intelligence expert, James Bamford.

More disturbing, as Mr Bamford and the MEPs pointed out, was the threat
Echelon posed to privacy. "The real issue is whether Echelon is doing away
with individual privacy - a basic human right," he said. The MEPs looked at
statements from former members of the intelligence services, who provided
compelling evidence of Echelon's existence, and the potential scope of its
activities.

One former member of the Canadian intelligence service, the CSE, claimed that
every day millions of emails, faxes and phone conversations were intercepted.
The name and phone number of one woman, he said, was added to the CSE's list
of potential terrorists after she used an ambiguous word in an innocent call
to a friend.

"Disembodied snippets of conversations are snatched from the ether, perhaps
out of context, and may be misinterpreted by an analyst who then secretly
transmits them to spy agencies and law enforcement offices around the world,"
Mr Bamford said.

The "misleading information", he said, "is then placed in NSA's
near-bottomless computer storage system, a system capable of storing 5
trillion pages of text, a stack of paper 150 miles high".

Unlike information on US citizens, which officially cannot be kept longer
than a year, information on foreigners can he held "eternally", he said.

The MEP's draft report concludes the system cannot be as extensive as reports
have assumed. It is limited by being based on worldwide interception of
satellite communications, which account for a small part of communications.

Eavesdropping on other messages requires either tapping cables or
intercepting radio signals, but the states involved in Echelon, the draft
report found, had access to a limited proportion of radio and cable
communications.

But independent privacy groups claimed Britain, the US and their Echelon
partners, were developing eavesdropping systems to cope with the explosion in
communications on email and internet.

In Britain, the government last year brought in the Regulation of
Investigatory Powers Act, which allowed authorities to monitor email and
internet traffic through "black boxes" placed inside service providers'
systems. It gave police authority to order companies or individuals using
encryption to protect their communications, to hand over the encryption keys.
Failure to do so was punishable by a sentence of up to two years.

The act has been condemned by civil liberties campaigners, but there are
signs the authorities are keen to secure more far reaching powers to monitor
internet traffic.

Last week, the London-based group, Statewatch, published leaked documents
saying the EU's 15 member states were lobbying the European commission to
require that service providers kept all phone, fax, email and internet data
in case they were needed in criminal investigations.



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