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In Depth

Nation States' Espionage and Counterespionage

An overview of the 2007 Global Economic Espionage Landscape

By Christopher Burgess

Page 5

Japan organizes a counterintelligence unit

In August 2007, Japan's Ministry of Foreign Affairs set up a counterintelligence unit within the ministry, with the specific mandate of protecting information inside the ministry and in its establishments abroad. Of particular note, this is the first counterintelligence unit to exist in over 50 years within the ministry.

This action is believed to have been a direct result of the much-publicized December 2005 incident in Shanghai, when the Chinese Ministry of State Security is alleged to have applied considerable coercive pressure as part of an entrapment scenario on a consulate employee that resulted in the employee choosing suicide over compromising the confidential communications between Japan's Consulate General Shanghai and the Ministry of Foreign Affairs. The death of the consulate employee, a most unfortunate incident, has been a thorn in the side of Sino-Japan relations, for which the Chinese government has repeatedly absolved itself of any culpability or responsibility.

It is worth noting, however, the striking similarity between the steps necessary to protect a nation's diplomatic correspondence and communications and that of a corporation. Any defensive measures contemplated should surely consider inclusion of a precautionary note about new-found acquaintances.

China and Russia are also in Oz

In July 2005, Paul O'Sullivan, chief of the Australian Security Intelligence Organisation (ASIO), authorized the increase in personnel, spending and allocation of resources to boost the capabilities in 2007-2008 of the new Counter-Espionage and Interference Division, and to continue this increase in spending each year through 2011. The Australian, a daily newspaper, reported that Russia and China pose the most serious espionage threat to Australia's national interests. In an ASIO submission to the Parliamentary Joint Committee on Intelligence and Security in February 2007, it was highlighted to the committee that the ranks of Russian and Chinese intelligence presence in Australia were at near Cold War levels, with their focus on Australian military, scientific and industrial secrets.

New Zealand warns of foreign governments in its systems

The Prime Minister of New Zealand, Helen Clark, confirmed in September 2007 that New Zealand computer systems supporting the government had been penetrated by foreign governments. When speaking about the incident, Clark noted, "The assurance I've been given by intelligence agencies is that no classified information has been at risk at all." This position was supported by the commentary of the head of the New Zealand Security Intelligence Service, Warren Tucker, who confirmed there was evidence that foreign governments were responsible for the attacks but did not name the countries. However, he did refer to the comments made by Canada's security service about China's activities (see below).