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Intelligence report: China collecting U.S. nuclear secrets

WASHINGTON (AP) -- Several countries, including China, have collected extensive nuclear and other sensitive information from the U.S. government that has "undercut U.S. policy, security and competitiveness,'' according to a previously secret American intelligence community report.

The 1998 report by the CIA and five other agencies said "losses are extensive'' at the besieged Energy Department, and include "classified nuclear weapons design information to the Chinese'' as well as declassified and unclassified material to China and other countries.

The report predates the congressional Cox Report, released last year, which concluded that the transfer of satellite and other technology to China, during and prior to the Clinton administration, harmed national security.

While the agencies "did not conduct a damage assessment of the information lost, individual cases clearly demonstrate that such information has saved countries substantial time and money and has undercut U.S. policy, security and competitiveness,'' said the report, published in a new book on Chinese espionage.

The report, which covers activities prior to November 1998, said Energy Department records show more than 250 known or suspected intelligence officers visited or were assigned to Energy facilities under various programs.

The U.S. intelligence community, working with the department, must "do more to gain a full understanding of the nature and extent of foreign targeting of DOE's unique scientific knowledge base,'' the report said.

Some of the information was simply downloaded from the Internet, while some was stolen, the report said.

Since 1995, the FBI has been investigating the suspected loss of U.S. nuclear warhead data to China, based on information found in documents provided by a defector.

That led to the investigation of Wen Ho Lee, a Taiwan-born researcher at Los Alamos National Laboratory in New Mexico. Lee pleaded guilty to one count of improperly transferring nuclear secrets to a portable computer, but he was never charged with spying for China.

The intelligence report was one of more than 50 pages of documents, many of them classified, published in "The China Threat,'' by Bill Gertz, who writes about defense and national security for The Washington Times.

Three pages in the book carry the notice: "At the request of the Central Intelligence Agency, the publisher has withdrawn a classified report that was to have appeared on this page.''

Bill Harlow, CIA spokesman, said Gertz "did approach us and we were able to convince him to leave several of the documents out. But we would have preferred that none were published.''

One document says China will soon have enough short-range missiles to blanket Taiwan. Another says China is converting medium-range bombers to tankers so it can refuel planes in midair and extend its military reach. Yet another document proposes that the United States provide advanced space technology to China in exchange for not selling missile technology to Iran and Pakistan. Gertz said this idea was withdrawn after it became public knowledge.
AP-ES-11-03-00 1730EST

U.S. intelligence report sees Chinese spy threat

WASHINGTON (Reuters) -- China had at least 37 spies concentrating on ferreting out U.S. nuclear arms secrets in the mid-1990s and the effort has been "very successful'', according to a secret U.S. intelligence report.

The report was published in a newly released book, "The China Threat'' by Washington Times reporter Bill Gertz, and also details espionage against the United States by Russia, Japan, France, Israel, India and other countries.

The book says that in the early 1990s the FBI came across evidence China had spies inside the U.S. government, including one "burrowed'' in the intelligence community.

Intercepted communication between the Chinese embassy in Washington and Beijing suggested the agent, code-named "Ma'' -- horse in Chinese -- was supplying classified defense information, the book said. But the FBI never found the mole.

The book includes extensive excerpts from a U.S. intelligence report titled "Foreign Collection Against the Department of Energy: The Threat to U.S. Weapons and Technology,'' which describes how various countries targeted U.S. nuclear secrets.

It includes information up to Nov. 6, 1998, just months before the China spying scandal erupted publicly in early 1999, and said China had obtained highly classified nuclear weapon design information.

More than 250 known or suspected intelligence officers from 27 countries visited or were assigned to various Energy Department facilities in the five years up to 1998, it said.

"Russia and China had the largest intelligence presence with 141 and 37 officers, respectively,'' the report said.

China's nuclear stockpile was deteriorating and so it targeted U.S. information related to nuclear weapons design, the report said. "This effort has been very successful, and Beijing's exploitation of U.S. national laboratories has substantially aided its nuclear weapons program,'' it said.

CHINA JAPAN "ADEPT''
China and Japan were "very adept'' at collecting scientific and technological information using people such as scientists, academics and businessmen, the report said.

Japan targeted U.S. nuclear labs for information on sensitive technologies through the Japan External Trade Organization, it said.

China, France, India, Israel, Pakistan, Russia and Taiwan ''are known to intercept U.S. satellite communications, and, in many cases, have extensive capabilities to intercept other communications,'' the report said.

Russia mainly sought U.S. nuclear weapons secrets that involved state-of- the-art technologies, the report said.

France had a record of exploiting legitimate access to U.S. businesses and government institutions to collect information and commonly sought information beyond the parameters of joint agreements, it said.

"India has emerged as a dangerous intelligence threat'' and has a well- developed and aggressive intelligence collection capability for U.S. secrets on advanced military and civilian technology, the report said.

Taiwan has "a substantial intelligence presence in the United States'' and focuses its spying efforts on the United States and China, the report said.

South Korea has a "major intelligence presence'' in the United States and expanded collection of nuclear technology secrets during the 1990s, while Iraq pursued information on U.S. technologies from other countries, the report said. Some documents were not published at the request of the CIA and National Security Agency (NSA), and instead blank pages were left in the book. Those included NSA reports on China's sale of a chemical weapons factory to Iran and how China helped Iran develop its missile program, the book said.

Fears of Chinese espionage fueled an investigation into Taiwanese-born Los Alamos scientist Wen Ho Lee, who was eventually charged with 59 counts of mishandling classified information.

He was never charged with spying and was freed from jail in September after pleading guilty to one count of downloading nuclear weapons design secrets to a non-secure computer.
REUTERS Reut21:08 10-31-00

Beijing attacks U.S. reports on Chinese spying

BEIJING, Nov 16 (Reuters) - China dismissed allegations in a book by a Washington Times reporter about Chinese spying on U.S. nuclear secrets as "sheer fabrication'' on Thursday and accused the author of still living in the Cold War era.

A newly released book, "The China Threat'' by Bill Gertz, alleges Beijing had 37 spies ferreting out U.S. nuclear secrets in the mid-1990s and includes extensive excerpts from a U.S. intelligence report.

"This kind of report by the Washington Times is a sheer fabrication with ulterior motives and we are strongly dissatisfied with it,'' Foreign Ministry spokesman Sun Yuxi told a news conference.

"There are still some people in the United States who maintain a Cold War mentality. For many years they have fabricated many rumours slandering China,'' he said.

"Many rumours have already collapsed in the face of facts.''

The book says that in the early 1990s the FBI came across evidence China had spies inside the U.S. government, including one "burrowed'' in the intelligence community.

Intercepted communications between the Chinese embassy in Washington and Beijing suggested the agent, code-named "Ma'' -- horse in Chinese -- was supplying classified defence information, the book said. But the FBI never found the mole.

Fears of Chinese espionage fuelled an investigation last year into Taiwanese-born Los Alamos scientist Wen Ho Lee, who was eventually charged with 59 counts of mishandling classified information.

He was never charged with spying and was freed from jail in September after pleading guilty to one count of downloading nuclear weapons design secrets to a non-secure computer.

"We demand that those who have cooked up the so-called 'Chinese spying case' recognise the trend of the times and immediately stop these acts of attacking China,'' Sun said.
REUTERS Reut04:21 11-16-00

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