-Caveat Lector-

 The Sunday Times (London)
 December 5 1999
 BRITAIN


 Blair's spy summit on red mafia

 Nicholas Rufford

 THE heads of Britain's three intelligence agencies have
 held an unprecedented summit at Downing Street in
 response to the rising threat from international
 organised crime.

 Dr Stephen Lander, of MI5, Richard Dearlove, MI6
 chief, and Francis Richards, of GCHQ, assembled for the
 first time in secret session to brief Tony Blair that
 international gangs may now be the biggest threat to
 national security.

 The summit followed warnings from the Home Office of
 a "crime emergency" facing Britain. Racketeering, illegal
 immigration and multi-million-pound fraud are growing
 at a staggering rate and are swamping the efforts of
 police and customs. Blair has told colleagues since the
 meeting, at the end of last month, that the escalation in
 crime could threaten Labour's chances of a second term
 in office.

 The meeting is understood to have taken place in the
 Cabinet Room, where Blair was flanked by Jonathan
 Powell, his chief of staff. The heads of the three services
 have not met at Downing Street since the IRA mortar
 attack in February 1991. The November meeting was the
 first called on crime.

 Blair has agreed to a request by the agencies to divert
 resources from counter-espionage and
 counter-terrorism. The peace process in Northern
 Ireland will allow the agencies to scale down their efforts
 against Irish terrorism, though rebel groups remain a
 threat.

 MI6 will expand its operations against drug traffickers,
 particularly along the "Balkans route" through which
 most drugs enter Britain. MI5 is expected to double the
 £10m it spent last year on fighting serious crime. GCHQ,
 the government's listening station, is to step up
 interception of computerised transactions linked to
 money-laundering and fraud, and international
 telephone traffic between gangs.

 The fastest growing areas of criminal activity are:

 -- The "red mafia" - a term covering Russian and eastern
 European gangs. Having siphoned billions of dollars
 from the former Soviet Union through fraud, extortion
 and smuggling they are investing in London property and
 in stocks and shares. The red mafia was linked to Friday's
 murder in Monaco of Edmond Safra, head of a global
 financial empire.

 -- Albanian gangs engaged in human trafficking,
 prostitution, arms dealing and drug smuggling. Criminal
 activity has been boosted by the rapid growth of the
 Albanian population in British cities and the continuing
 lawlessness in Kosovo.

 -- Turkish drug barons are tightening their grip on the
 heroin trade, by flooding the market with cheap imports
 and assassinating opponents. More heroin was seized in
 Britain in the first six months of this year than for all of
 1998. Four-fifths of heroin seized in Britain was peddled
 by Turkish gangs.

 -- Cigarette smuggling by Asian gangs has reached
 epidemic levels and is estimated to cost the Treasury
 £1.7 billion this year, representing more than a penny on
 income tax.

 -- West African criminal gangs in Britain are rapidly
 expanding their operations from credit-card and
 advance-fee fraud to other criminal operations,
 including welfare fraud across the European Union.

 -- More established gangland names have not gone away.
 The Italian mafia was behind an attempt to break into the
 Lloyd's insurance market earlier this year by buying up
 brokerages. The triads, in conjunction with Far Eastern
 crime syndicates, have been attempting to infiltrate
 British sport.

 The Downing Street summit agreed closer integration
 and possible merger of the work of the intelligence
 services and other law enforcement agencies. A senior
 MI5 officer has been appointed to help run the national
 intelligence division of Customs and Excise. He will
 complement the work of Paul Evans, head of the national
 investigations service, who was recruited from MI6.
 Other MI5 officers have been seconded to the national
 criminal intelligence service, which advises police forces.

 Crime in Britain is following the pattern of the United
 States and becoming more premeditated and more
 violent. Jack Straw, the home secretary, said last week
 that theft in England and Wales could rise by 40% by
 2001 and burglary by 25%.

 President Bill Clinton yesterday approved $30 billion
 spending for America's intelligence services, which have
 been given increased powers to seize the assets of drug
 traffickers.



 Copyright 1999 Times Newspapers Ltd.


 http://www.sunday-times.co.uk/news/pages/sti/
99/12/05/stinwenws01029.html?999



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