http://computerworld.com/cwi/story/0,1199,NAV47_STO57039,00.html # # Brit accuses U.S. of snooping # # Europe admits it too taps corporate nets # # BY DAN VERTON (January 29, 2001) The European Parliament received # a detailed report last week that contains evidence of a 10-year # effort by the U.S. government to use its intelligence technology # to help U.S. companies win commercial contracts. The report was # by a British journalist hired by the European Parliament to # investigate a global electronic eavesdropping network. # # The so-called Echelon network is run by an alliance among the # U.S., the U.K., Canada, Australia and New Zealand. The report # came as a panel of experts testified in Europe last week that # the U.S. isn't the only country plucking sensitive corporate # and economic data from the Internet and airwaves. # # "I referred many times [in the report] to the fact that European # countries ran satellite [signal intelligence] systems to collect # intelligence," Duncan Campbell, the author of the report, told # Computerworld. # # France and Germany are also known to employ modern technologies # designed to collect economic intelligence that would help firms # in those countries. Europeans are "open-minded and readily accept # that our companies and governments - like [the U.S.]" spy, bribe # and cheat on occasions, Campbell said. "The European inquiry # is going ahead on that basis." # # In his study, Campbell accused Lexington, Mass.-based Raytheon # Co. of receiving information from Echelon that allowed it to # outbid two French firms in 1994 for a $1.4 billion contract with # the Brazilian government for a system to monitor any environmental # changes in the rain forests there. A Raytheon official called # the charges groundless. # # "Raytheon won the [contract] because it had the best technical # solution and the lowest price and best financial proposal," a # company spokesman said. # # Neil MacCormick, a vice chairman of the European Parliament's # special commission on Echelon, called Campbell's testimony sober # and balanced. The use of Echelon, particularly its Advocacy # Center, which helps U.S. businesses overcome unfair trading # practices, is well documented, said MacCormick. # # "It therefore follows that some of the output of Echelon is used # in contexts of economic intelligence affecting the interests # of non-U.S. businesses," he said. # # "Many European nations should look into the mirror before # complaining about economic espionage by other nations," said # Cees Wiebes, a professor at the University of Amsterdam who # testified last week before the parliament of the Netherlands. # # According to Wiebes, many Dutch multinationals - including Philips # Electronics NV and Royal Dutch/Shell Group - have received # intelligence gathered by the Dutch equivalent of the U.S. National # Security Agency (NSA) to support construction projects at airports # and seaports. # # But U.S. intelligence officials insisted that Echelon isn't used # to covertly assist U.S. companies in their efforts to win # contracts around the world. They said Echelon is used to uncover # international fraud schemes, criminal activity and terrorist # groups. # # A spokesman for the NSA, which manages the Echelon network, said # the agency operates in strict accordance with U.S. laws that # prohibit the agency from providing "intelligence information # to private firms for their economic advantage." # # A former CIA official familiar with NSA operations who spoke # on the condition of anonymity said he finds the claims of # assistance to U.S. firms by the NSA hard to believe - except # in cases involving specific military technologies. Campbell and # the European Union are "overplaying the economic espionage aspect # of Echelon," he said. # # Executives in the U.S. also discounted claims made during a # European Parliament hearing last November that U.S.-produced # software such as Microsoft Corp.'s Windows operating system # contains back doors that support Echelon activities. # # Steve Lipner, manager of Microsoft's Security Response Center, # said the best example of Microsoft's position on Echelon and # of not allowing back doors to be implanted in its software is # evident in its opposition to legislation that would require # companies to share encryption keys with federal law enforcement.