CODE RED SHUTS U.S. MILITARY WEB SITES
The U.S. military shut down its public Websites on Monday to
ensure that they are protected against the "Code Red" computer
virus.  The virus displays the slogan "Hacked by Chinese!" on
infected Internet sites.  Pentagon intelligence officials
suspect the virus was developed by a Chinese Army hacker unit
formed recently by the People's Liberation Army (PLA).

According to DOD spokeswoman Lt. Col. Catherine Abbott, "most
DOD Web sites will not be accessible by the public until this
worm no longer poses any threat to DOD networks.

CHINESE NET COMPANY KICKED OFF NASDAQ
NetEase.com, listed as NTESE on the NASDAQ, the Chinese Internet
portal confirmed that it faces a possible halt to trading of its
shares on the U.S. stock market for failing to turn in its
annual report.

According to a technology analyst with Credit Suisse First
Boston in Hong Kong, NTESE's failure is not going over well in
Asia.  "There are enough risks investing in China to begin with.
You want full and timely disclosure on the part of management.

CARNIVORE IN THE SPOTLIGHT
The U.S. House of Representatives passed an amendment offered by
Congressman Bob Barr (GA-7), requiring the Justice Department to
disclose how it uses the FBI Carnivore surveillance system.
Carnivore is an FBI developed eavesdropping mechanism designed
to monitor Internet traffic.  Barr's amendment, which was
offered to address citizens' growing privacy concerns, passed as
part of the annual Department of Justice appropriations bill.

The Barr Amendment directs the Attorney General to provide a
report at the end of Fiscal Years 2001 and 2002 to the Congress,
forcing the FBI to reveal the scope of the Carnivore program.
Barr's requirements include how many times Carnivore has been
approved for use, who reviewed surveillance requests, and the
criteria used to approve requests.
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