Reno calls Taiwan an intelligence threat


                    By Bill Gertz
                    THE WASHINGTON TIMES


                         The Clinton administration, in a
                    departure from longtime U.S. policy, has
                    placed Taiwan on the FBI's secret list of
                    hostile intelligence threats, equating Taipei
                    with aggressive spying by Beijing and
                    Moscow.

                         China, Russia and Taiwan are among 13
                    nations designated as priorities for FBI
                    intelligence and counterespionage activities,
                    according to a classified memorandum from
                    Attorney General Janet Reno.

                         "I hereby designate the following
                    countries as country threats under the
                    [National Security List] for 1999/2000,"
                    Miss Reno wrote.

                         Based on FBI, Justice and State
                    Department reports, Miss Reno then listed,
                    in order of priority, Russia, China, North
                    Korea, Federal Republic of Yugoslavia,
                    Serbian-controlled Bosnia, Vietnam, Syria,
                    Iraq, Iran, Libya, Sudan and Taiwan.

                         In addition to nations, the so-called
                    national security threat list includes eight
                    issues that guide FBI intelligence work:
                    terrorism, espionage, proliferation,
                    economic espionage, infrastructure
                    targeting, government targeting, perception
                    management and legal intelligence gathering.

                         Disclosure of the threat list comes as the
                    House is preparing to vote on legislation that
                    would loosen trade restrictions on China.

                        Current and former U.S. intelligence
                    officials said the inclusion of Taiwan on the
                    list appears based on the administration's
                    pro-Beijing policies that seek to equate
                    Taiwan in the same threat category as
                    China.

                         Asked about the inclusion of Taiwan on
                    the list, Sen. Jon Kyl, Arizona Republican
                    and a member of the Senate Intelligence
                    Committee, said: "What threat?"

                         "It's very strange to me that Taiwan
                    would be on this list, especially since other
                    countries that spy on us are not," Mr. Kyl
                    said. He added he plans to seek an
                    explanation from intelligence officials.

                         If Taiwan is on the threat list, then
                    Israel, India, Pakistan and France also
                    should be added since those nations conduct
                    spying operations against the United States,
                    said a former senior U.S. intelligence
                    official.

                         "This is just for political purposes. The
                    Taiwanese are not in the same league as the
                    other threats and they are the one country
                    on the list that is not a mortal enemy of the
                    United States."

                         Justice Department sources said the
                    memorandum was written by Frances
                    Fragos Townsend, counsel for intelligence
                    policy and a political appointee who is close
                    to Miss Reno. Miss Townsend was
                    criticized in a recent internal Justice
                    Department report for turning down an FBI
                    request for a wiretap of Los Alamos
                    National Laboratory scientist Wen Ho Lee.

                         Mr. Lee is the chief suspect in an FBI
                    investigation of Chinese nuclear spying. He
                    was indicted in December for mishandling
                    nuclear secrets.

                         The former official said the danger from
                    "politicizing" the threat list is that "it has the
                    practical effect of distorting the focus of the
                    FBI and other intelligence community
                    agencies" charged with protecting national
                    security.

                         "It distorts the reality of the threat and
                    confuses people," he said.

                         Said a second former high-ranking
                    intelligence official, "Why isn't Israel on the
                    list?"

                         Taiwan's intelligence service in the past
                    has engaged in intelligence gathering aimed
                    at classified information, and also has
                    sought weapons technology. However, the
                    Taiwanese have not been involved in recent
                    cases, this former official said.

                         "I'm really surprised," he said of
                    Taiwan's inclusion on the list.

                         A current U.S. government official
                    involved in China issues said putting Taiwan
                    on the threat list reflects the administration's
                    pro-Beijing and anti-Taiwan stance. "The
                    administration clearly sees Taiwan as the
                    problem, as a provocateur and
                    troublemaker," he said.

                         Seven of the threat nations are states
                    subject to U.S. sanctions as state sponsors
                    of international terrorism: Cuba, North
                    Korea, Syria, Iraq, Iran, Libya and Sudan.

                         The FBI National Security Division
                    stated in a separate document that the threat
                    issues apply to the activities of all foreign
                    nations, "with special attention given to
                    those nations determined to be a strategic
                    national security threat." The strategic
                    national security threats are those on the
                    threat list.

                         FBI officials privately have expressed
                    frustration at limits imposed by the White
                    House and State Department that prohibit
                    any public identification of the hostile
                    nations and threat issues.

                         Justice Department and FBI spokesmen
                    had no comment.

                         A copy of the document was obtained
                    by The Washington Times from
                    investigative reporter Scott Wheeler of
                    American Investigator, a television news
                    show. Mr. Wheeler turned up the document
                    following production of a documentary film
                    on China called "Trading With the Enemy."

                         The threat list strategy replaced the
                    FBI's "criteria" country list and gives
                    investigators more flexibility in conducting
                    national security probes. It is the first time
                    the classified list of nations and issues has
                    been made public.

                         In addition to terrorism, spying and
                    weapons proliferation, a relatively new issue
                    in the issue list is the threat to the "national
                    infrastructure" from electronic information
                    warfare attacks.

                         "The national information infrastructure
                    is the electronic backbone for the storage,
                    processing and communication of
                    information for nearly every sector of U.S.
                    society," the memorandum states.

                         The FBI is charged with thwarting
                    foreign intelligence activities aimed at
                    denying or disrupting computer, cable,
                    satellite or telecommunications services, as
                    well as unauthorized monitoring.

                         The memo was sent by Miss Reno to
                    FBI Director Louis J. Freeh and sets FBI
                    intelligence priorities for 1999 and 2000. It
                    is dated March 8, 1999, and states that it
                    was to be reviewed in March 2000 and
                    approved by December.

                         Another former intelligence official said
                    the FBI has never uncovered an espionage
                    case involving Taiwan. "There is some
                    collecting [by Taiwanese agents], but it is
                    nothing on the level of the Chinese," he
                    said. He added "there is no doubt that the
                    Israelis are conducting more operations than
                    the Taiwanese."

                         Taipei's military was linked to the
                    murder of a dissident in the 1980s, said this
                    former official.

                         Editor's Note: Janet Reno's memo on
                    hostile intelligence threats will be posted on
                    American Investigator's web site
                    (www.americaninvestigator.net) on
                    Wednesday, May 24.



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