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2 September 1998
Thanks to DH

    Date: Wed, 02 Sep 1998 12:46:14 -0700
    To: jya@jya.com
    Subject: THE WAR OF THE ECONOMIC INTELLIGENCE SERVICES

    http://www.intelligence.ru/english/public/n0003/t5.shtml

    THE WAR OF THE ECONOMIC INTELLIGENCE SERVICES

    On December 27, 1997 the "Bonner rundschan" newspaper published some
    materials about the activities of the foreign intelligence services on the
    West German territory. The publication pays special attention to the
    problem of economic espionage. In particular, the interview of
    Hellenbroich, the former president of the Federal agency for the protection
    of Constitution (West German BFF), is devoted to this subject.

    As the retired counter-intelligence officer says, "the Russian spies are
    specially active in the sphere of economic intelligence". As the
    confirmation to this thesis, the article says that last year BFF exposed 60
    Russian intelligence agents in Bonn and 56 intelligence agents in Berlin.
    The agents had the cover-ups of the positions in the embassy, trade mission
    and the joint Russian-German commercial services. In his opinion, specially
    active are also the special services of the Ukraine, Byelorossia,
    Uzbekistan and Kazakhastan, also of the Arab countries, Iran and the
    countries of the Asian and Pacific region.

    The former BFF leader recognized also that West Germany's partners in NATO
    (in particular, France, England, USA and others) are actively engaged in
    spying activities on its territory. Last March the German government had to
    declare P.Hamphris, a CIA agent who worked under the cover of the US
    embassy in Bonn, as a "person non grata" and him to leave the country. He
    tried to recruit a highly positioned official from the ministry for economy
    who had access to the high-tech information. It is believed that the spying
    activities of the foreign intelligence services on the territory of the
    Federal Republic of Germany causes the damage to this country in the amount
    of 20 billion D-marks annually.

    According to the Prosecutor General of FRG, in 1997 alone it initiated 90
    criminal charges under the article "espionage". Four people were detained
    and two of them were arrested on the basis of the charges, the newspaper
    writes.

    But the problem of economic espionage is of no smaller concern also for
    USA. According to the US magazine "Business Week", in 1996 the US FBI
    initiated 800 criminal charges on the facts of stealing the commercial
    information, which is twice as high in comparison to the 1994 level of the
    economic espionage.

    The magazine writes that in October 1996 a law entered into force in USA
    about the economic espionage. Under the law, the accused might be sentenced
    for 25-years imprisonment, and the states which sent them might be
    sentenced to pay the fees of up to 10 million dollars. The same crimes,
    committed by the American citizens against competing firms, are punished
    less severely.

    The US CIA believes that France is most active in the economic espionage.
    Its runner-up is Israel, Washington's "strategic partner" in the Middle
    East. And this takes place despite the fact that Israel holds the first
    place as per the amount of the US real economic and financial aid to
    foreign countries. The third "prize-winning" place in this spying race is
    held by China, which is carrying out the modernization of its rapidly
    growing economy.

    Russia is occupying the fourth place, and it is followed by Iran and Cuba,
    which prefer to act against the American firms in the third countries.
    According to CIA, the total damage of USA because of the economic espionage
    makes up from 25 to 30 billion dollars annually.

    As per France which, according to the US mass media, is specially active
    among NATO countries in the field of economic espionage, in this country
    those activities are carried out on a wide basis. Not only the French
    intelligence, but also private firms are engaged in that. The Association
    of French commercial chambers has recently establish a department of
    economic intelligence within its structure which is headed by Philip
    Claire, the former leader of the General Secretariat of the national
    defense of France.

    At the end of last year the Association of commercial chambers of France
    organized the national network had been set up already in 1993 by the
    Ministry of trade and industry of great Britain. At present, according to
    the British newspaper "Intelligence Newsletter", it unites 240 English
    companies. But the French business circles are intending to go in for a
    deeper integration in this field and to include into the national network of
    economic espionage not only the companies, but also trade associations,
    universities which have common interests in the field of modern know-how
    and commerce.

    Already in 1996, the Association of French commercial chambers signed an
    agreement with the French Ministry of Defense, under which it will get
    access to the information obtained in those countries where the French
    peacekeeping forces are carrying out their operations in order to restore
    law and order. Beside the African states which have been traditionally
    playing the key role in proving the former mother country with cheap raw
    materials and natural resources, this time they mean such countries as
    Bosnia and Cambodia.

    The Committee on the issues of competitiveness and economic security of
    France submitted its recommendations to the prime-minister about further
    improvement of economic intelligence. It is supposed to form up "a leading
    committee" to be headed by the President of the country. This Committee is
    meant to supervise the activities of the national organization of economic
    intelligence, within the framework of which there will be coordinated the
    efforts of different services, both governmental and private ones. It is
    noted, that only on the basis of the existence of a powerful system of
    economic intelligence, France can maintain the competitiveness of its
    industry on the international level, and in some areas to press out USA and
    the other Western competitors.

    This initiative did not remain unnoticed by the overseas partners of Paris
    in NATO. According to the US mass media, at present a project is being
    considered to use the American peacekeeping forces to carry out similar
    operations in the interests of the American companies. At the same time it
    is believed that under the banner of the peacekeeper, USA will study the
    situation on the foreign markets in order to work out practical
    recommendations in relation to the best possible investments of the
    American capitals into the post-war restoration of the economies in those
    countries where the civil wars are going on.

    V. Starosadsky