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COMING SOON FROM MER:  The FOX News Spiked Expose About Israeli Spying
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     ISRAELI SPYING IN AND ON THE USA - ESSENTIAL BACKGROUND

            ONLY A FULL CONGRESSIONAL INVESTIGATION 
                        CAN PENETRATE THE DECEPTION

MID-EAST REALITIES - www.MiddleEast.Org - Washington - 3/06/2002:    
The world of spying, like the world of "black ops", is full of confusion, 
disinformation, and false leads.  Those in the media, even the biggest establishment 
news outlets, usually lack the means (as well as the will) to penetrate very far into 
this world on their own.  It's usually a combination of leaks and plants, each with 
motives baggage, that makes it possible for such deeply hidden matters to come to be 
known; and even then the twists and contortions are very difficult if not impossible 
to fully smooth out.  But over time, more and more aspects of these secret worlds do 
at times leak out; and sometimes, like a jigsaw puzzle, the larger picture comes into 
view, even without all the pieces ever being put in place.  Take all of these 
considerations in mind when reading these two very insightful but incomplete past 
articles which deal with many of the essential background elements to the latest and 
potentially most important Israeli spying scandal yet in the US...just now breaking 
into public view.  Only a very serious and very independent and very major 
Congressional investigation has any chance of ever getting to the bottom of all this 
Israeli espionage and political blackmail.  But then we all know what the chances of 
the U.S. Congress truly getting involved in this really are; and we all know who has 
whom by the balls.




                  ISRAELI SPIES:  'MEGA' AND OTHERS

              'Mega' Was Not An Agent, 'Mega' Was The Boss

                                by Jeffrey Steinberg 

For a brief period of time in early 1997, the Central Intelligence Agency, the Federal 
Bureau of Investigation, and the National Security Agency engaged in a frantic mole 
hunt for an Israeli spy, believed to be operating inside the highest levels of the 
Clinton Administration national security establishment. By the time the mole hunt was 
made public--in a May 7, 1997 Washington Post leak--the hunt had been abruptly ended, 
and for all intents and purposes, the story disappeared from the news within a matter 
of days.

According to the Post account, in January 1997, the National Security Agency (NSA) had 
intercepted a phone conversation between an Israeli official at the embassy in 
Washington, and Danny Yatom, the head of the Mossad, Israel's foreign intelligence 
service. The official sought permission from the spy boss to "go to Mega" in order to 
obtain a copy of a confidential letter that had been sent by then-U.S. Secretary of 
State Warren Christopher to Palestinian Authority President Yasser Arafat, concerning 
U.S. assurances about a recently negotiated agreement for an Israeli military 
withdrawal from the Hebron area in the West Bank. Yatom, according to the NSA 
intercept, rejected the request, admonishing his agent, "This is not something we use 
Mega for."

The idea that the Israeli government was running another spy operation inside the U.S. 
national security establishment created a tremendous stir. The Washington Post, in its 
May 7, 1997 leak, had reported, "One official with knowledge of the FBI investigation 
into the identity of Mega cautioned that much remained unknown. But the official said 
that if it turned out that a senior U.S. official was passing sensitive information to 
Israeli authorities, it could prove more serious than the espionage case involving 
Jonathan Jay Pollard, a former Navy analyst who was convicted in 1986 of selling U.S. 
military intelligence documents to Israel."

To this day, the Pollard affair is a hot-button issue inside the U.S. intelligence 
community. At the time of Pollard's arrest in November 1985, it was known that the 
Navy analyst had been "tasked" to obtain specific U.S. military intelligence secrets, 
by someone much higher up in the U.S. intelligence community. To this day, the hunt 
for "Mr. X," Pollard's inside controller, continues. In 1986, EIR had revealed the 
existence of not merely a "Mr. X," but an "X Committee," made up of nearly a dozen 
top-level Pentagon and National Security Council officials, all suspected of having 
been part of the Pollard spy network.

Given the seriousness of the Mega security breach, the abrupt shutdown of the mole 
hunt naturally prompted some wild speculation about the circumstances under which the 
search for Mega was abandoned. In March 1999, British author Gordon Thomas released a 
book, Gideon's Spies, which alleged that Israel had blackmailed the Clinton 
Administration, with the threat to release tapped telephone conversations between the 
President and Monica Lewinsky, to force Washington to abandon the Mega hunt. Indeed, 
in her testimony before independent counsel Kenneth Starr, Lewinsky had reported that 
the President had warned her, on March 29, 1997, at the height of the Mega hunt, that 
he suspected the White House telephones were being tapped by agents of an unnamed 
foreign country.

Years later, it was revealed that the White House communications system had been 
overhauled and modernized during the early Clinton era, and one of the main outside 
contractors involved in the project was an Israeli firm, Amdocs. According to a May 
2000 story in Insight magazine, Amdocs employees would have had nearly unfettered 
access to White House telephone lines and other super-sensitive communications 
equipment. However, the nature of the request from the Mossad man in Washington to 
Yatom—to obtain a confidential State Department document—rules out the possibility 
that Mega was an electronic eavesdropping source.

    Mega-Suspects

Even though the Mega hunt was formally called off, still in some U.S. intelligence 
quarters, the effort to unearth the suspected Israeli spy cell apparently continued. 
In September 2000, a CIA team of counterintelligence specialists arrived in Israel, 
after U.S. Ambassador Martin Indyk had his security clearances temporarily lifted. 
Ostensibly, Indyk had breached security guidelines by bringing classified U.S. 
government documents to his residence in Tel Aviv. But it later was revealed that the 
CIA probe was triggered by an August 2000 unauthorized meeting between Indyk and the 
former head of the Mossad, Ephraim Halevy, which the ambassador had never reported 
back to Washington.

If there were anyone in the Clinton Administration's political hierarchy who was a 
prime candidate to be the Israeli spy Mega, it was Indyk. A British-born Australian 
citizen, Indyk had been Australia's top Mideast security official in the late 1970s, 
as deputy director of current Mideast intelligence at the Australian Office of 
National Assessments, the equivalent of the U.S. National Security Council. But, Indyk 
abruptly quit the post after just ten months, prompting speculation that he had come 
under suspicion of spying for Israel (he had lived in Israel while completing his 
dissertation on "The Power of the Weak: The Ability of Israel and Egypt to Resist the 
Policies of their Super-Power Patrons"). According to British journalist Kevin 
Dowling, Indyk next surfaced in Israel, as a "media consultant" to Israel's Likud 
Prime Ministers, Menachem Begin and Yitzhak Shamir.

In 1982, Indyk came to America, ostensibly on a six-month sabbatical from his duties 
with the Office of the Israeli Prime Minister. Based out of Cornell University, Indyk 
formed a research department for the America-Israeli Public Affairs Committee (AIPAC), 
the "official" Israeli lobby in the United States. Within a year, AIPAC had ponied up 
$100,000 to Indyk to hive off the research unit as the Washington Institute for Near 
East Policy (WINEP). Pro-Israel luminaries in Washington, including former Vice 
President Walter Mondale, former Secretaries of State George Shultz and Alexander 
Haig, and former United Nations Ambassador Jeane Kirkpatrick, were among the 
initiating members of WINEP's advisory board, according to Dowling's Sept. 27, 2000 
account of the Indyk counterintelligence probe.

Indyk's "six-month sabbatical" never ended, but it was not until 1987 that the 
Australian got his first green card, permitting him to work in the United States. 
Indyk was made a U.S. citizen on Jan. 12, 1993—just eight days before he was appointed 
to the incoming Clinton Administration's National Security Council (NSC) staff as 
Senior Director for Near East and South Asian Affairs. Indyk had already been an 
informal Mideast policy adviser to President George H.W. Bush, at the initiative of 
Dennis Ross, Bush's Assistant Secretary of State, previously a deputy to Indyk at 
WINEP. At the time of the Mega hunt, Indyk had Ross' old job as Assistant Secretary of 
State for the Near East.

Another prime suspect in the Mega mole hunt was Leon Fuerth, Vice President Albert 
Gore's national security adviser, and another well-known pro-Likud fanatic. The 
Washington Post, in a 1998 profile of Fuerth, reported that he was suspected by U.S. 
intelligence officials of passing sensitive U.S. policy information to Israeli Prime 
Minister Benjamin Netanyahu (Likud), a passionate, personal enemy of President 
Clinton, who was suspected of activating the Mega spy operation.

Also on the Mega list of suspects inside the Clinton national security apparatus was 
Richard Clarke, the National Security Council "counterterrorism czar," who was fired 
from the State Department and brought onto the Bush Administration NSC in 1992, after 
he was accused by the State Department's Inspector General of concealing illegal 
Israeli arms sales to China.

    The Purloined Letter Principle

While all of the above-mentioned Bush- and Clinton-era national security operatives 
may have been, indeed, secretly, or not-so-secretly passing critical American policy 
papers and classified documents to the Likud faction in Israel; and, while 
then-Israeli Prime Minister Netanyahu and his Mossad mandarins may have been 
attempting to blackmail the President, there is a much simpler answer to the Mega 
puzzle: Mega was not a deep mole inside the White House. Mega was a far more visible, 
far more powerful entity, known among its several dozen members as "the Mega Group."

The existence of the Mega Group came to light, almost exactly a year after the 
Washington Post revealed that the mole hunt was under way. Yet, the story of the Mega 
Group, which appeared in the Wall Street Journal on May 4, 1998, made no mention of 
espionage, and did not mention the Mossad, the CIA, or Monica Lewinsky, even in 
passing. Despite that, the Mega Group precisely fits the story of the illusive mole 
hunt, in a manner that has profound policy implications to this day, as President 
George W. Bush struggles to avoid an outbreak of war in the Middle East, which would 
have devastating consequences for the entire planet.

Under the innocent headline, "Titans of Industry Join Forces To Work for Jewish 
Philanthropy," Wall Street Journal staff reporter Lisa Miller reported on an April 
1998 gathering of some 20 Jewish billionaires, at the Manhattan apartment of 
hedge-fund manager Michael Steinhardt. That gathering involved some of the most 
powerful names in the Jewish lobby in America, starting with Edgar Bronfman, the 
chairman of the World Jewish Congress. Others included: Charles Bronfman, Edgar's 
brother and a top executive of the family's flagship Seagrams Corp.; Leslie Wexler of 
Limited, Inc.; Charles Schusterman, chairman of Samson Investment Co. of Tulsa, 
Oklahoma; Harvey "Bud" Meyerhoff, a fabulously wealthy and powerful Baltimore real 
estate magnate; Laurence Tisch, chairman of Loews Corp.; Max Fisher, the Detroit oil 
magnate and Republican Party powerhouse; bagel magnate Max Lender; and Leonard 
Abramson, the founder of U.S. Healthcare.

According to the Journal account, the Mega Group was founded in 1991 by Wexler and 
Charles Bronfman, to add greater clout to the Israeli lobby, by establishing an 
informal, but all-powerful policymaking group, able to deploy billions of dollars in 
"charitable" funds for the maximum effect on U.S. policy toward Israel, the Mideast, 
and other issues of paramount importance to the Jewish megabillionaires. The Mega 
Group convenes twice a year, for two-day sessions, where, behind closed doors, the 
members make life-and-death decisions, affecting U.S. policy. Membership is by 
invitation only; the meetings are secret (the Wall Street Journal story was the only 
coverage to ever appear in the U.S. media about the existence of the Mega Group, 
before the publication of this EIR account); and the members each kick in $30,000 in 
annual dues, to cover "operating expenses" for the twice-yearly sessions.

Charles Bronfman reflected the Mega Group's propensity for secrecy, when he told the 
Journal's Lisa Miller, "From the beginning we didn't want to be seen as a threat to 
anybody. And that still pertains. We don't want to be seen as the Sanhedrin," a 
reference to the highest court of the ancient Jews. "We don't want to be looked at 
crooked." Charles' far more sinister and slick brother, Edgar, tried to dismiss the 
activities of the Mega Group, telling Miller, "We want to make it cool to be Jewish."

    Not So Cool

But then, a March 13, 2001 dispatch by the Jewish Telegraph Agency revealed that the 
Mega Group is more than a loose bunch of Jewish billionaires out to do good. The JTA 
reported that newly installed Israeli Prime Minister Ariel Sharon was about to launch 
a two-pronged propaganda offensive inside the United States, aimed at winning American 
support for his plans to overturn the Mideast peace process. First, the JTA revealed, 
the Sharon government announced that it was hiring two U.S. public relations 
firms—Rubenstein Associates and Morris, Carrick and Guma—to peddle the Israeli 
government "spin" inside the U.S. media and in policymaking circles in New York and 
Washington.

The JTA wire continued, "More controversially, a handful of Jewish mega-donors has 
created a think-tank they hope will generate long-term strategies for presenting 
Israel in a favorable light."

The new think-tank, Emet (the Hebrew word for "truth"), JTA reported, is the 
collective brain-child of Leonard Abramson, Edgar Bronfman, and Michael 
Steinhardt—three of the leading Mega Group members (JTA made no mention of Mega). The 
Mega Group is expected to kick in $7 million to launch the new organization, with the 
Israeli Foreign Ministry also pledged to pony up $1 million in startup cash. But, lest 
there be any confusion about who's in charge at Emet, JTA revealed that "the group 
consulted with [Malcolm] Hoelein, [Abe] Foxman and other Jewish activists—and only 
then notified Israel's Foreign Ministry, Foxman said." Hoelein, the executive vice 
president of the Conference of Presidents of Major American Jewish Organizations, is a 
fanatical backer of the Sharon war-drive, a view he shared with the just-retired 
president of the group, Ronald Lauder, a big Sharon financial backer who met with 
Sharon in September 2000—just before the latter staged his provocation at the Islamic 
holy sites on the Temple Mount/al-Haram al-Sharif in Jerusalem, triggering the ongoing 
violence.

The Emet project has been criticized inside Israel, by Foreign Ministry officials and 
peace activists alike. As JTA reported, "Some Foreign Ministry officials grumbled that 
American Jews were poaching on their turf. Not surprisingly, they would prefer that 
any extra money be funneled to the ministry's efforts.... Israel's left appeared 
concerned that hawkish American Jews will use Emet to push a hard-line approach to the 
peace process." Steinhardt, Bronfman, and Abramson refused to talk about the project. 
But the enthusiastic endorsement for Emet from Morton Klein, president of the hawkish 
Zionist Organization of America, is strong confirmation that the outfit will peddle 
Sharon's war line. As EIR reported recently, Klein led a delegation of right-wing 
Zionists and evangelical Christians in a White House meeting, where they threatened a 
Presidential representative with a cutoff of support, if Bush attempted to interfere 
in Sharon's war schemes. 

    The Power of Money

The Mega Group story came full circle on May 5, 2001, with the publication of a story 
in an obscure Israeli online publication, Media Monitors Network, by writer Israel 
Shamir.  Shamir noted, with no lack of irony, the meeting of the Mega Group, which had 
taken place the previous day at the Manhattan mansion of Edgar Bronfman.
Shamir first described a meeting he had recently had with a Vermont-based 
psychoanalyst, the nephew of Israel's first Prime Minister, David Ben-Gurion. The 
nephew prided himself on the fact that his closest friends were Palestinians, and that 
he rejected the idea of a Jewish "tribal" identity, preferring to view all human 
beings as brethren.

Shamir observed, "That is the last thing the bosses want. I would not be amazed if 
they discussed it yesterday, when they met in the Edgar Bronfman mansion in Manhattan. 
The head of the World Jewish Congress hosted a meeting of the 50 richest and most 
powerful Jews of the U.S. and Canada. There was no press coverage, no limelight, just 
a few lines in the newspapers.... They agreed to launch a PR program under the 
Orwellian codename of 'Truth' with the purpose of influencing American public opinion 
regarding Israeli policies."
Shamir continued, "The megabucks call themselves 'Mega group.' This name appeared in 
the media a couple of years ago, as a name for the secret Israeli mole in the upper 
reaches of the U.S. establishment. It came up in an overheard phone conversation, 
later denied by the Israeli embassy in Washington, D.C. The newshounds and spook 
watchers got it wrong. 'Mega' was not an agent, Mega was the boss."

With some bitterness, Shamir wrote, "Megabucks influence us, even more than they 
influence the U.S. Our politicians are as weak and corrupt as America's and they are 
easier to swing. Even relative small-timers can cause eruption and bloodshed, like the 
California bingo-parlor owner [Irving] Moskowitz, who pushed our ex-prime minister 
Netanyahu to open the tunnel under the Haram al Sharif.... The Megabucks can buy 
Israel with their spare change. If they wish, we would have peace in Palestine today. 
But they are not interested in Israel per se.... Megabucks care for themselves, and 
they need Israel in order to keep the American Jews together, supporting them. That is 
why they do not mind bloodshed in Palestine, and even a bloody regional war does not 
scare them."

Shamir concluded: "In my opinion, Megabucks, rather than forces of Caballa, move the 
events in the Middle East. It is not magic, just money—but a lot of money. They do not 
rule America or Israel, but they exercise a lot of influence. Fifty multibillionaires 
united in one framework present a very real force in the world."

Of course, Shamir does not have the picture precisely right. The Bronfman-centered 
Mega Group is but one component of an insane and desperate element within the 
transatlantic financial establishment that is now pressing for a "Clash of 
Civilizations," as a means of responding to the collapse of their global financial 
empire, and the threat of a new set of Eurasia-centered cooperative arrangements among 
nations supplanting their power. But, as far as the Mega puzzle is concerned, Shamir 
has solved the mystery.

No wonder Mossad boss Yatom scolded his Washington-based underling with the warning, 
"This is not something we use Mega for."   [Executive Intelligence Review - 8/31/01]. 
 


           ANOTHER ISRAELI SPY SCANDAL IN WASHINGTON?
                                  by Srdja Trifkovic

Over the weekend the Clinton Administration and Israeli officials have denied reports 
that a major Israeli intelligence operation compromised sensitive US government 
communications lines, including those used by the White House and the State 
Department. "We have no information that the White House sound systems have been 
compromised nor have we ever been briefed to that effect," announced White House 
spokeswoman Jennifer Palmieri, reacting to an expose by the Internet gossip columnist 
Matt Drudge and a lengthy investigative report published in last Saturday's Insight 
magazine (dated May 29, 2000).

Both reports claimed that Israeli intelligence services had been routinely 
intercepting the telephone and modem communications of key US government agencies. 
"The worst penetrations are believed to be in the State Department," Insight said of 
its year-long investigation. "But others say the supposedly secure telephone systems 
in the White House, Defense Department and Justice Department may have been 
compromised as well." Israeli intelligence monitored several telephone numbers at the 
White House and the National Security Council using a new sophisticated eavesdropping 
method that allowed it to listen in to telephone lines from remote sites. The 
allegations come at a time when the Clinton administration is already under fire for 
lax security practices in the aftermath of several widely publicized security breaches 
at the State Department. The department revealed on May 5 that it was missing "at 
least two, possibly more" laptop computers used by high-ranking diplomats for 
making notes. Another laptop computer containing top secret information disappeared 
without a trace from the State Department building in January.

But while any and all statements coming from the Clinton White House should be 
considered untrue until proven otherwise, the tongue-in-cheek denial issued by the 
Israeli Embassy in Washington smacks of real chutzpah. Mark Regev, a spokesman for the 
Embassy, said: "I don't listen even to the phone conversations of my wife" and called 
the allegation "outrageous." He also made the remarkable assertion that "Israel does 
not spy on the United States."

This is patently untrue. Israel treats America as a foreign country, friendly and 
generous to be sure, but nevertheless a legitimate target for aggressive intelligence 
operations. In the most notorious case of Israeli spying against the U.S. the former 
civilian intelligence analyst for the U.S. Navy, Jonathan Pollard, was convicted in 
the late 1980s of passing over to his Israeli handlers the amazing bundle of some 
500,000 documents, including photographs, names and locations of overseas agents. Most 
U.S. intelligence experts agree that the damage to U.S. security interests was 
tremendous, and its long-term implications are still felt.

The facts of the phone-tapping case are difficult to establish because Israeli spying 
is treated in Washington as a political issue, not just a law-enforcement matter. This 
is due to the tendency of certain circles, in and out of government, to minimize the 
impact of Israeli espionage against the United States on the grounds that Israel is a 
"friendly country." Jewish groups in the U.S. have openly campaigned to have Pollard 
pardoned claiming that "spying for Israel" is oxymoronic in view of the allegedly 
identical strategic and security interests of the U.S. and Israel. But "friendly 
spying" does not exist any more than "friendly adultery" does. 

We now know that Israel had passed stolen U.S. secrets to America's adversaries 
whenever it suited its interests, regardless of America's interests. The government of 
Yitzhak Shamir thus provided the Soviet Union with valuable U.S. documents stolen by 
Pollard, and American technology was used in Israeli military hardware sold to China 
and Iran, among others. Why is it that Israel is not treated as just another foreign 
country, friendly to the United States and important to U.S. interests but foreign 
nevertheless? It is idle to pretend that the dictum "people are policy" does not apply 
to this issue, especially since, to quote Brian Mitchell, "in the last 
quarter-century, United States foreign policy has been entrusted to people lately 
arrived upon this continent, people indeed whose principal attachment to this country 
is a matter of ambition. They might just as well have settled elsewhere except that 
the United States offered better jobs, more prestige, and more power. In one egregious 
case, a man with dual Israeli and Australian citizenship, Martin Indyk, did not even 
accept U.S. citizenship until after he was offered a high-level job with Bill 
Clinton's National Security Council."

Secretary of State Madeleine Albright's insensitive - almost provocative - selection 
of her closest associates has contributed to an air of schizophrenia that can only 
provide ammunition to the assorted anti-Semites and conspiracy theorists. Not long 
after the "revelations" about Albright's Jewish roots in early 1997, the 
newly-appointed Secretary of State appointed her closest team of assistants: Special 
Middle East coordinator Dennis Ross became Albright's senior counselor, a position 
that extended his brief way beyond the Middle East. The position of undersecretary of 
State for economic affairs was given to Stuart Eizenstadt, previously ambassador to 
the European Community and the administration's point man on determining the extent of 
Jewish assets in Swiss banks. The six regional assistant secretary posts were offered 
to Mark Grossman (assistant secretary for 
European affairs), Princeton Lyman (international organizations), former Rep. Howard 
Wolpe of Michigan (African affairs), Stanley Roth (Asian affairs), and Karl Indefurth 
(assistant secretary for South Asia). Jeff Davidow was at that time already assistant 
secretary of State for Latin American affairs, while the aforementioned Martin Indyk - 
formerly a handsomely paid Israeli lobbyist - was U.S. ambassador to Israel.

Albright's selection probably owed more to her candidates' post-national, 
globalist-liberal world outlook than to their ethnic origins, but some observers could 
be forgiven for concluding that never before in this nation's history had there been 
so many Americans with actual or at least potential dual loyalties working at the 
highest levels of the U.S. government. In view of another key ingredient - the 
ownership structure and editorial control of most of the liberal establishment media 
in the United States - it is hardly surprising that the law enforcement agencies and 
potential whistle-blowers regard any allegations of Israeli spying as politically 
explosive. Insight quotes a former U.S. intelligence officer as saying that "when it 
has anything to do with Israel, it's something you just never want to poke your nose 
into."

Perhaps for that reason Monica Lewinsky's revelation to Kenneth Starr of Clinton's 
suspicion that he was being wire-tapped by a foreign government did not receive the 
publicity it deserved: "He suspected that a foreign embassy was tapping his 
telephones, and he proposed cover stories," the Starr report quoted her as saying, and 
nobody doubts the veracity of her statement. But House and Senate investigators were 
told by the government agencies in late 1998 that Lewinsky's claim was untrue, and - 
in addition - that there was no investigation of any kind involving any foreign 
embassy or foreign government espionage in such areas. By that time, in fact, "the FBI 
and other U.S. agencies, including the Pentagon, had been working furiously and 
painstakingly for well over a year on just such a secret probe," says Insight, "and 
fears were rampant of the damage that could ensue if the American public found out 
that even the remotest possibility existed that the president's phone conversations 
could be monitored and the president subject to foreign blackmail.

Whether the President had already been blackmailed or not will only transpire in 
memoirs and declassified papers years from now. But if the government of Israel is 
indeed engaged in espionage against the United States - an assumption that is almost 
certainly true, regardless of the veracity of the phone tapping story - it means that 
the Israelis do not regard their presumed allies in the U.S. government as reliable 
guardians of Israel's best security interests.

Such suspicions are justified. Agnostic, deracinated liberal globalists - Jews and 
gentiles alike - greedily seeking "benevolent hegemony" over the entire mankind have 
to abandon any loyalty to a particular people, or nation, in the process. If Israel is 
to survive in a hostile and complex environment, it is well advised not to take 
anything or anybody in Washington for granted. If it is spying there, as it almost 
certainly is doing, it is engaging in normal adaptive behavior. To tolerate it is 
abnormal; to pretend it is not happening is criminal.  [The Rockford Institute - 
5/2001]







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