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Computer Surveillance

WHITE HOUSE BIG BROTHER COMPUTER PLAN

FBI gets your bank records, your phone records, your email

The Clinton Administration has developed a plan for an extensive
computer monitoring system, overseen by the Federal Bureau of
Investigation, to protect the nation's crucial data networks from
intruders.
The plan, an outgrowth of the Administration's anti-terrorism program,
has already raised concerns from civil liberties groups.

A draft prepared by officials at the National Security Council last
month, which was provided to The New York Times by a civil liberties
group, calls for a sophisticated software system to monitor activities
on nonmilitary Government networks and a separate system to track
networks used in crucial industries like banking, telecommunications and
transportation.

The effort, whose details are still being debated within the
Administration, is intended to alert law enforcement officials to
attacks that might cripple Government operations or the nation's
economy.

But because of the increasing power of the nation's computers and their
emerging role as a backbone of the country's commerce, politics and
culture, critics of the proposed system say it could become a building
block for a surveillance infrastructure with great potential for misuse.


They also argue that such a network of monitoring programs could itself
be open to security breaches, giving intruders or unauthorized users a
vast window into Government and corporate computer systems.

Government officials said the changing nature of military threats in the
information age had altered the nature of national security concerns and
created a new sense of urgency to protect the nation's information
infrastructure.

"Our concern about an organized cyberattack has escalated dramatically,"
Jeffrey Hunker, the National Security Council's director of information
protection, who is overseeing the plan, said Tuesday. "We do know of a
number of hostile foreign governments that are developing sophisticated
and well-organized offensive cyber attack capabilities, and we have good
reason to believe that terrorists may be developing similar
capabilities."

As part of the plan, networks of thousands of software monitoring
programs would constantly track computer activities looking for
indications of computer network intrusions and other illegal acts.

The plan calls for the creation of a Federal Intrusion Detection
Network, or Fidnet, and specifies that the data it collects will be
gathered at the National Infrastructure Protection Center, an
interagency task force housed at the Federal Bureau of Investigation.

Such a system, to be put fully in place by 2003, is meant to permit
Government security experts to track "patterns of patterns" of
information and respond in a coordinated manner against intruders and
terrorists.

The plan focuses on monitoring data flowing over Government and national
computer networks. That means the systems would potentially have access
to computer-to-computer communications like electronic mail and other
documents, computer programs and remote log-ins.

But an increasing percentage of network traffic, like banking and
financial information, is routinely encrypted and would not be visible
to the monitor software. Government officials argue that they are not
interested in eavesdropping, but rather are looking for patterns of
behavior that suggest illegal activity.

Over the last three years, the Pentagon has begun to string together
entire network surveillance systems using filters that report data to a
central site, much as a burglar alarm might be reported at the local
police station.

Officials said such a system might have protected against intrusions
recently reported in computers at the Bureau of Labor Statistics, which
produces information like the consumer price index that can affect the
performance of the stock market.

The draft of the plan, which has been circulated widely within the
executive branch, has generated concern among some officials over its
privacy implications. Several officials involved in the debate over the
plan said that the situation was "fluid" and that many aspects were
still not final.

The report is vague on several crucial points, including the kinds of
data to be collected and the specific Federal and corporate computer
networks to be monitored. The report also lacks details about the ways
information collected in non-Governmental agencies would be maintained
and under what conditions it would be made available to law enforcement
personnel.

Government officials said that the National Security Council was
conducting a legal and technical review of the plan and that a final
version is to be released in September, subject to President Clinton's
approval.

The plan was created in response to a Presidential directive in May 1998
requiring the Executive Branch to review the vulnerabilities of the
Federal Government's computer systems in order to become a "model of
information and security."

In a cover letter to the draft Clinton writes: "A concerted attack on
the computers of any one of our key economic sectors or Governmental
agencies could have catastrophic effects."

But the plan strikes at the heart of a growing controversy over how to
protect the nation's computer systems while also protecting civil
liberties -- particularly since it would put a new and powerful tool
into the hands of the F.B.I.

Increasingly, data flowing over the Internet is becoming a vital tool
for law enforcement, and civil liberties experts said law enforcement
agencies would be under great temptation to expand the use of the
information in pursuit of suspected criminals.

The draft of the plan "clearly recognizes the civil liberties
implications," said James X. Dempsey, staff counsel for the Center for
Democracy and Technology, a Washington civil liberties group, "But it
brushes them away."

The draft states that because Government employees, like those of many
private companies, must consent to the monitoring of their computer
activities, "the collection of certain data identified as anomalous
activity or a suspicious event would not be considered a privacy issue."


Dempsey conceded the legal validity of the point, but said there was
tremendous potential for abuse.

"My main concern is that Fidnet is an ill-defined monitoring system of
potentially broad sweep," he said. "It seems to place monitoring and
surveillance at the center of the Government's response to a problem
that is not well suited to such measures."

The Federal Government is making a concerted effort to insure that civil
liberties and privacy rights are not violated by the plan, Hunker said.

He said that data gathered from non-Government computer networks will be
collected separately from the F.B.I.-controlled monitoring system at a
separate location within a General Services Administration building. He
said that was done to keep non-Government data at arm's length from law
enforcement.

The plan also has drawn concern from civil libertarians because it
blends civilian and military functions in protecting the nation's
computer networks. The draft notes that there is already a Department of
Defense "contingent" working at the F.B.I.'s infrastructure protection
center to integrate intelligence, counterintelligence and law
enforcement efforts in protecting Pentagon computers.

"The fight over this could make the fight over encryption look like
nothing," said Mary Culnan, an professor at Georgetown University who
served on a Presidential commission whose work led to the May 1998
directive on infrastructure protection.

"The conceptual problem is that there are people running this program
who don't understand how citizens feel about privacy in cyberspace."

The Government has been discussing the proposal widely with a number of
industry security committees and associations in recent months.

Several industry executives said there is still reluctance on the part
of industry to directly share information on computer intrusions with
law enforcement.

"They want to control the decision making process," said Mark Rasch,
vice president and general counsel of Global Integrity, a company in
Reston, Va., coordinating computer security for the financial services
industries.

One potential problem in carrying out the Government's plan is that
intrusion-detection software technology is still immature, industry
executives said.

"The commercial intrusion detection systems are not ready for prime
time," said Peter Neumann, a computer scientist at SRI International in
Menlo Park, Calif., and a pioneer in the field of intrusion detection
systems.

Current systems tend to generate false alarms and thus require many
skilled operators.

But a significant portion of the $1.4 billion the Clinton Administration
has requested for computer security for fiscal year 2000 is intended to
be spent on research, and Government officials said they were hopeful
that the planned effort would be able to rely on automated detection
technologies and on artificial intelligence capabilities.

For several years computer security specialists have used software
variously known as packet filters, or "sniffers," as monitoring devices
to track computer intruders. Like telephone wiretaps, such tools can be
used to reconstruct the activities of a computer user as if a videotape
were made of his computer display.

At the same time, however, the software tools are routinely misused by
illicit computer network users in stealing information such as passwords
or other data.

Commercial vendors are beginning to sell monitoring tools that combine
packet filtering with more sophisticated and automated intrusion
detection software that tries to detect abuse by looking for behavior
patterns or certain sequences of commands.

The New York Times, July 28, 1999


The Digital Society

Internet Dissection: Virtual Mummy

Why does your computer monitor smell like formaldehyde?

A MUMMY of a 2,300-year-old woman can now be dissected on the Internet,
down to the resin that embalmers poured on to her skull, thanks to the
Virtual Mummy project.
The image of the mummy, which lies in a sycamore coffin, was made by a
team of scientists at the University of Hamburg by taking a series of
X-ray cross- sections, then reconstructing them with the help of a
computer. Using a computer, it is now possible to provide views of the
mummy from any direction, even from inside her skull.

The unwrapping of a mummy by computer may not be as mysterious as the
real thing, but at least it respects the dignity of the deceased, the
team said. The Virtual Mummy site features in the latest issue of the
journal Science and has just been released on the Internet, said Bernard
Pflesser, who works with Prof Karl Heinz Höhne's team at the
university's Institute of Mathematics and Computer Science in Medicine.

The head is enclosed in a mask made of linen, covered with stucco.
Underneath is a ring made of woven plant materials, which symbolised
that the wearer had passed judgment, and at the back of the head are
traces of hardened ointment.

A stick helps to support the skull, which is well preserved aside from
some missing teeth and a broken bone plate, which was damaged when the
embalmers removed the brain through the nose. For more than a decade,
Prof Höhne's team has done research in the field of anatomical 3D
reconstruction of the living human body.

The technology has reached the point where computer-based body models -
virtual bodies - can be examined in the way an anatomist or surgeon
would do, so that operations can be simulated and planned in advance.
The work on mummies was conducted with Renate Germer of the university's
Department of Egyptology.

The London Telegraph, July 28, 1999


Bitch Country

Giuliani Goes to Little Rock

Listening tour. Oink. Oink.

IN the sweet heat of an Arkansas morning, Mayor Rudolph Giuliani of New
York spoke from the steps of the Governor's Mansion in Little Rock
yesterday, poking fun at its former occupant, Hillary Clinton.
Technically, he had come to the capital of Arkansas for a fund-raising
event for his probable Senate campaign.
But in reality he was here to make the point that Mrs Clinton had no
more business standing for office in New York, a state she has never
lived in, than Mr Giuliani, the quintessential New Yorker, would have
standing in Arkansas, where Mrs Clinton's husband was governor for 12
years.

At a press conference with his fellow Republican, Governor Mike
Huckabee, the mayor made a long-running gag of the idea that he might
offer himself as a candidate in Arkansas.

Asked about a local Arkansas issue, he made fun of Mrs Clinton's recent
"listening tours" of New York state. "If I became a candidate in
Arkansas," he said, "I would have a very strong position on that. But
right now I'm just listening." Throughout, the mayor could barely hide
his slightly sinister smirk, looking very much the city tough among a
gaggle of soft-bellied Southern politicians.

When he said how touched he was by the New York state flag hanging
outside his hotel, and promised to fly an Arkansas flag outside City
Hall in New York, he made sure to add "if we can find one".

Arkansans have grown used to politicians coming down to their state to
make a point against President Clinton and his wife. "There's always a
little circus going on," said Ray Pierce of the Arkansas Democrat
Gazette.

The Giuliani trip, however, has stirred more interest than most
political visits. Last week the mayor's Senate campaign chief, Bruce
Teitelbaum, had to promise in a preparatory visit to the state that Mr
Giuliani was not coming to look down his metropolitan nose at the
locals.

Arkansans are deeply divided about the Clintons, with as many hating
them as are blindly loyal. Yesterday, for example, large pickets were
protesting at a Little Rock town council proposasl to rename a section
of the town after the President.

Outside the Governor's mansion, a group of Arkansas Republicans showed
their support for Mr Giuliani. "How can Mrs Clinton know anything about
New York?" asked Donna Kay Bridgeforth, 47. "But it's better than her
running down here. They can have her."

In New York, the mayor's big joke has gone down a storm. "Arkansas Here
We Come" screamed the front page of the New York Daily News. "Rudy heads
South for listening tour on Hillary's turf."

Inside is a useful list of "10 things Giuliani should know about life in
Arkansas", including "Little Rock is so small you could fit the
populations of 43 of them into New York City"; and "Arkansans' idea of a
limousine is a pick-up truck with a couch in the back".

In the early thrust and parry of a campaign in which neither Mr Giuliani
nor Mrs Clinton has officially announced their candidacy, poll after
poll puts the mayor ahead of the First Lady. The charge that she has no
business standing in New York seems to be hitting home.

Before leaving New York on Monday night, a grinning Mr Giuliani
explained the genesis of his trip: "Originally it started as a joke. I
think I raised it about two and a half months ago. I said 'I'm going to
Arkansas since I've never been there, never lived there, have no
connection to the state' and that I was going to run for the Senate from
there, form an exploratory committee and test the waters."

The comment led to an invitation from Governor Huckabee. All over
America, Democrats and Republicans are looking to the New York Senate
race even more than the Presidential contest as the final vote on the
Clinton legacy. Mr Giuliani has chosen his destination extremely well as
he tries to remind New Yorkers that the benign Mrs Clinton they are
seeing on the "listening tours" has a past.

It is hard to turn a corner in Little Rock without coming upon the scene
of a Clinton scandal: the hotel where Governor Clinton allegedly exposed
himself to Paula Jones; the Rose Law Firm where Mrs Clinton was a
partner and a set of controversial billing records vanished; and the
nightclubs where the governor partied with assorted women and his
cocaine-snorting brother Roger.

A private lunch in Little Rock for the mayor's putative campaign was
expected to raise no more than £20,000. But money was never the real
point of this trip.

The London Telegraph, July 28, 1999


Electronic Trading

Reuters' Instinet Backs Archipelago


Instinet, the securities broking arm of Reuters, yesterday threw its
weight behind an upstart US trading network in a move likely to add to
the pressure on the New York Stock Exchange and other US markets to turn
themselves into public companies.


The subsidiary of the UK media and information company has agreed to pay
an undisclosed sum for a 16.4 per cent stake in Archipelago, a private
electronic share trading network set up to compete with the established
exchanges. At the same time, Archipelago said it planned to seek
approval from the Securities and Exchange Commission to become a fully
fledged stock exchange. That would make it easier to challenge the New
York Stock Exchange's dominance of trading in the shares of stocks
listed on its market, the two companies said.


The investment marks Instinet's first stake in a US trading network, and
echoes similar stakes it has in the for-profit stock exchanges that
operate in Stockholm and Sydney. Along with Archipelago and a group of
other investors, it also recently bought a controlling stake in
Tradepoint, a UK stock exchange.


The NYSE and Nasdaq, which operates a screen-based market, have both
courted Instinet in recent months in an effort to ensure that its
sizeable trading volumes are conducted on their markets. The Reuters
subsidiary claims to handle around 20 per cent of all trades in Nasdaq
companies, which include most of the leading US technology companies,
though it handles a far smaller share of NYSE trades. By trying to forge
an alliance with Instinet, the NYSE has set out to take trading away
from the rival Nasdaq market.


Doug Atkin, Instinet chief executive, said the stake in Archipelago did
not preclude investments later in the NYSE and Nasdaq, if those markets
followed through with plans to become publicly traded, for-profit
exchanges.


However, he and Gerald Putnam, chief executive of Archipelago, said the
upstart trading network aimed to draw trading away from the established
markets for some of the most prominent US companies.

The Financial Times, July 28, 1999


Banking

Barclays Gets a New New Chief Executive

What is the relationship between Barclays' top management and Cantor
Dust?


Barclays, the UK's second largest bank, yesterday ended months of
uncertainty by naming Matthew Barrett, outgoing chairman of the Bank of
Montreal as its new chief executive.


The appointment is Barclays' second attempt to fill the vacancy caused
by the abrupt departure of Martin Taylor last November. Its first
choice, Michael O'Neill, a top US banker, had to withdraw through ill
health before starting work.


Mr Barrett, who is expected to serve five years, is to take up the post
on October 1, ending a 10-month gap during which Sir Peter Middleton,
the bank's chairman, has been acting chief executive.


Over that period, Barclays has lost its finance director, its treasurer
and its directors of planning and corporate communications. Yesterday,
Graham Pimlott, director of operations and technology, also left.


Investors, who had been largely unworried by the gaps in Barclays' top
management, nevertheless welcomed Mr Barrett's appointment, pushing the
bank's share price up 4.6 per cent to £17.82.


"I was beginning to worry that Middleton had taken root in the chief
executive's role," said one analyst.


Although some bankers believed Christopher Lendrum, who heads Barclays'
corporate banking division, or John Varley, head of its retail division,
could have taken the top job, neither is thought to have been in
contention for some time. Both will remain with the group.


Sir Peter said Mr Barrett had been one of the candidates Barclays had
considered, before it named Mr O'Neill. At the time, however, he had
been engaged in the process of attempting to merge the Bank of Montreal
with Royal Bank of Canada to form Canada's largest bank - a deal that
was blocked by the Canadian government.

The Financial Times, July 28, 1999


North Korean Missiles

The Screws Tighten on North Korea Over Missiles

No more free hotmail accounts if you don't shape up

SINGAPORE - North Korea will be hit with punitive economic sanctions and
lose a major opportunity to improve relations with Washington and its
two main allies in Asia if Pyongyang tests another powerful ballistic
missile, the foreign ministers of the United States, South Korea and
Japan said Tuesday.
Increasing diplomatic pressure on the unpredictable Stalinist state,
they warned that the consequences of missile proliferation for peace and
stability in Asia and the Pacific were so grave that Pyongyang had to be
punished, despite the possible risk of war.

After meeting in Singapore to coordinate their policies on the issue,
the three officials said in a joint statement Tuesday that another
long-range missile launching would have ''serious negative
consequences'' for North Korea.

Secretary of State Madeleine Albright said that such a launching,
''whether declared to be a missile test or an attempt to place a
satellite in orbit, would be highly destabilizing and would have very
serious consequences for our efforts to build better relations.''

As Tokyo warned Tuesday that the launching might take place within the
next two months, Foreign Minister Masahiko Koumura said in Singapore
that if it happened it would very likely result in Japan's withdrawing
its offer of $1 billion to help build two nuclear power plants in North
Korea in exchange for a freeze on Pyongyang's suspected program to
develop nuclear weapons.

Japan recently approved the money for the Korean Peninsula Energy
Development Organization, or KEDO, which is building the plants under
the 1994 ''agreed framework'' pact freezing the nuclear program of North
Korea.

''It will be extremely difficult for Japan to continue its cooperation
with KEDO,'' Mr. Koumura said.

Officials fear that the reactor deal could unravel if Pyongyang
continues missile testing. This could prompt South Korea to develop its
own ballistic missiles and hasten plans by the United States and Japan
to develop a missile defense shield, a move strongly opposed by China
and Russia.

North Korea sent shock waves through the Asia-Pacific region last August
by test-firing a Taepo Dong ballistic missile that soared over Japan and
landed in the Pacific Ocean. Pyongyang has said it was a satellite
launching, not a missile test.

U.S. officials have said North Korea appears to be preparing to launch a
more powerful version of the missile sometime this summer that could
reach as far as Hawaii and Alaska.

Some analysts are convinced that Pyongyang will test the missile. But
others suspect that it may be using test preparations to press
Washington, Seoul and Tokyo for a better economic and political deal.
They note that North Korea has in the past made skillful use of
brinkmanship to exact a higher price.

Still, Foreign Minister Alexander Downer of Australia said Tuesday that
the prospect of another North Korean launching had alarmed all 22 of the
Asian, Pacific and European countries, including China and Russia, that
met privately in Singapore on Monday for security talks in the ASEAN
Regional Forum.

''I think its fair to say the unanimous view was that this would be an
enormous setback for regional security,'' he said. ''It will not only
end the Perry review initiative, and therefore the possibility of
greater engagement with North Korea, but a further test will throw into
doubt the whole of the Agreed Framework.''

Mr. Downer said that, at the request of the U.S. government, William
Perry, the former U.S. defense secretary, had recommended a new policy
approach to North Korea that involved economic incentives and ''some
sort of diplomatic normality'' for Pyongyang if it acted ''in a
considerably more constructive way on security issues.''

Mr. Downer said that if North Korea tested another missile, ''it will
lead to a very serious diplomatic, if not worse, confrontation between
the region and North Korea.''

A Japanese government report on defense published in Tokyo on Tuesday
said that the missile program of North Korea and suspected nuclear
weapons development posed a grave security threat to the world.

It said that the new Taepo Dong-2, with a potential range of 3,500 to
6,000 kilometers (2,200 to 3,700 miles) appeared to be under
development.

Mrs. Albright said that the United States, Japan and South Korea had
stressed at their meeting here that improved relations with North Korea
depended on cooperation in security matters.

''This means full implementation of the agreed framework, complete
transparency on nuclear issues, and cessation of the development, export
and testing of longer-range missiles,'' Mrs. Albright added.

Mr. Hong of South Korea said that if North Korea tested another
long-range missile, ''We can think of holding back all the incentives on
offer and, as well, scaling down the speed and scope of all the
international or the inter-Korean cooperation programs.''

The United States has urged South Korea to restrain its own missile
program to help persuade North Korea to abandon its program. But Mr.
Hong indicated that Seoul felt it must now press ahead with a missile
deterrent.

''We have to consider that North Korea is rather advanced in its missile
technology,'' he said. ''So we should do something to reinforce the real
deterrence, credible deterrence, on the part of South Korea.''

The International Herald Tribune, July 28, 1999
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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