-Caveat Lector- ----Original Message Follows---- From: MichaelP <[EMAIL PROTECTED]> To: undisclosed-recipients:; Subject: Complex CIA-Industrial compact Date: Wed, 29 Sep 1999 22:09:56 -0500 (CDT) Tuesday September 28 10:03 PM ET Report: Germany Expels 3 CIA Agents MUNICH, Germany (AP) - Public television reported Tuesday that three CIA spies had been uncovered in Munich and forced to leave the country. The German government promised Washington it would keep the affair quiet, even agreeing not to officially expel the three, but allowing them to be ordered home by the U.S. government, ZDF public television said in a news release about its report, which is to air Wednesday night. The U.S. Embassy in Berlin declined to comment on the report. Domestic intelligence officials in Munich also refused to comment. In Washington, CIA officials could not be reached, and a State Department official said he had heard nothing about it. ZDF did not say what the three were allegedly working on in Germany. This was the second time that a CIA agent had been uncovered and expelled from postwar Germany, the report said. In March 1997, the German Economics Ministry confirmed that a U.S. diplomat tried to recruit one of its department chiefs to spy for Washington. Media reports at the time said the Americans were chiefly interested in getting a list of German companies that delivered high-technology supplies to Iran. A newsmagazine, Der Spiegel, estimated then that 100 U.S. intelligence agents were operating undercover in Germany. By TOM RAUM WASHINGTON (September 29, 1999 12:09 p.m. EDT http://www.nandotimes.com) - The CIA, not wanting to miss the boat on the Internet age or be outsmarted by tech-savvy adversaries, is teaming up with Silicon Valley entrepreneurs to invest in companies developing computer technologies that could help with intelligence gathering. Forgoing its usual clandestine ways, the agency has set up its own venture capital firm - with money appropriated by Congress - with offices in Washington and Palo Alto, Calif. It will invest in promising new start-up hi-tech companies. The CIA picked a fanciful name for the new company: In-Q-It. The "In" stands for intelligence. The "It" stands for information technology. And the Q? That's the code name of the James Bond character who comes up with all the gadgets that the fictional British spy uses. "We do have a sense of humor," Central Intelligence Agency spokesman Bill Harlow said Wednesday, confirming the existence of the new company. Harlow said the venture capital company "is clearly tied to us, but they make a big point of being independent." The venture, first reported by The Washington Post and The New York Times in Wednesday's editions, was actually set up last February as a nonprofit organization. But it is just now getting organized, with its own board of directors, according to the new chief executive officer, Gilman Louie. Louie said in an interview that the company would be small, with about 20 to 25 employees, and is being started with $28 million appropriated by Congress last year as part of the classified budget for the agency. Both Louie and the CIA said the venture capital company would only work on unclassified projects. Mainly, In-Q-It will invest in some high-tech companies and form joint ventures with other ones where the companies are working on promising technological projects that could benefit the CIA. This includes ways of helping the CIA to use the Internet more effectively and securely. It also will try to find promising technologies that will help the CIA better use the information it already possesses in a variety of forms, from paper to computer files. He cited the May 7 bombing of the Chinese embassy in Yugoslavia - a target picked by the CIA - as "the manifestation of the worst result that could happen if you don't have all your information lined up." Louie, 39, founded his own electronic game company - MicroProse Inc. - that was later bought by Hasbro. At Hasbro, Louie has been an executive with the toy company's online business group. He said he has no experience in espionage "and I want to keep it that way." The company's board of directors includes John Seely Brown, director of the Xerox Corporation's Palo Alto Research Center; Norm Augustine, chairman of Lockheed Martin; William Perry, the former defense secretary; and Jeong Kim of Lucent. NewYork Times September 29, 1999 C.I.A. to Nurture Companies Dealing in High Technology By JOHN MARKOFF PALO ALTO, Calif. -- Hoping to insure that the nation's spies have the latest information technology in the rapidly changing Internet age, the Central Intelligence Agency has established a venture capital company to nurture high-tech companies, company executives and former C.I.A. officials said. The C.I.A. has chosen a veteran Silicon Valley software executive to head the effort, which has an office in Washington with eight employees and will have a second office in Silicon Valley. With a nod to nostalgia for the mythic gadget-laden spycraft of the James Bond era, the agency has named its new nonprofit venture In-Q-It, in a reference to Major Boothroyd, a.k.a. Q, the master technologist whose basement laboratory develops advanced gadgets for the fictional British super-agent. It will be headed by Gilman Louie, an executive in the Hasbro toy company's online business group. ______________________________________________________________ Keeping America's spies up-to-date in the age of the Internet. ______________________________________________________________ The decision by the nation's spy agency to turn to Silicon Valley for technology assistance underscores the growing diversity of high-tech companies and the accelerated development of computer technologies. Unlike in the cold war, when the most advanced technologies trickled down from a handful of supercomputer companies, the most powerful technologies are increasingly being developed first by consumer electronics companies that now have vast markets to finance the developments of powerful systems and applications. In-Q-It is being financed with $28 million appropriated last year by Congress as part of the C.I.A.'s budget, which is classified. The company will seek joint projects and investments in crucial technology areas. "There is a tremendous information explosion today," said John McMahon, former deputy director of the C.I.A. and an In-Q-It board member. "As a result, the agency was always one step behind. The agency got the idea that maybe what it needed was something that would not only appreciate its needs but be an umbilical cord that was plugged in to the brightest minds in the Valley." Louie said Tuesday that the purpose of the new company would be to move information technology to the agency more quickly than traditional Government procurement processes allow. The agency, he said, was struggling with many of the same aspects of the Internet that are vexing to other Web surfers, including privacy and security. "The current model isn't working," Louie said. "The technology world has totally changed, and one day the C.I.A. woke up and realized they needed to go through the same change." The new company will supply venture capital in some cases, and in others it will hire contractors or partner with entrepreneurs in four areas: integrating Internet technology and applications into the C.I.A.'s work; developing new security and privacy technologies; nurturing data mining technologies to take better advantage of the agency's vast storehouses of records, and modernizing the agency's computer systems. Louie said that none of In-Q-It's work would be classified and that the organization would not be limited to the four areas he outlined. In contrast to many of its other activities, he said, the agency was taking pains to make the activities of In-Q-It highly visible and public. That stands in striking contrast to the agency's past approach to high-tech projects. For many years there have been reports that the United States intelligence community created shell companies when it had a particular high-technology problem to solve. Indeed, the C.I.A. worked secretly with Howard Hughes during the 1970's when it needed to develop specialized salvage technology to retrieve a sunken Soviet nuclear submarine in the Pacific Ocean. While In-Q-It will operate on a nonprofit basis, Louie said his intention was to invest in such a way as to make the organization self-sustaining. Jeffrey H. Smith, the new company's legal counsel and former general counsel to the C.I.A., said, "The Government will have the opportunity to use the intellectual property developed by In-Q-It for Governmental purposes, but In-Q-It will own and have the ability to use the technology it develops for commercial purposes." Louie said that while this was not the first effort to find innovative ways to move new technologies quickly to the Government's needs, he believed it was the first time a Government agency had adopted a venture financing effort that mimicked a private sector model. Venture capitalists said Tuesday that the problem the C.I.A. faces is a challenge faced every day by large organizations: attempting to keep up with the nimble pace of the Valley's technology start-up companies. A number of large multinational companies have in recent years set up investment funds in the valley in an effort to tap into the entrepreneurial spirit of the region. "There are a number of models on which the jury is still out," said James Breyer, managing partner of Accel Partners, a venture firm in Palo Alto, Calif. Companies like Lucent Technologies and the AT&T Corporation have become venture investors in the valley in recent years, he noted, and SRI Research International had less success in trying to spin out its research projects with an internal venture arm. "The most important aspect is to have an outstanding outside management effort overseeing the process," he said. "It appears in this effort the C.I.A. has chosen well." Previous Government efforts at financing technology have been highly focused efforts to promote the development of specific technologies either needed to keep the nation competitive or to meet national security needs. For example, during the 1970's through 90's various military research agencies like the Defense Advanced Research Projects agency and the Office of Naval Research financed academic and corporate projects not as investments but as contract research. In the early 1990's, the Government financed the Sematech computer consortium in an effort to maintain an independent semiconductor equipment industry in the United States, which was being threatened by Japanese and European competitors. Louie, 39, said Tuesday that he would work on both coasts and was now looking for an office in Silicon Valley. He said he had become involved in the new company after meeting a headhunter from Heidrick & Struggles at a mock-aerial dogfighting contest this year. Louie is a lifelong computer gaming aficionado who a year ago sold his computer gaming company, Microprose, to Hasbro. He has been a widely known figure in the Silicon Valley software world since creating his first computer gaming company while he was a student at San Francisco State University in the early 1980's. Among the new company's board members are John Seeley Brown, director the Xerox Corporation's Palo Alto Research Center; Lee Ault, director of Equifax Alex Brown; Stephen Friedman of Goldman Sachs; Norm Augustine, chairman of Lockheed Martin, and William Perry, former Secretary of Defense. |||||||||||||||||||||||||||||||||||||||||||||||||||||||||| In accordance with Title 17 U.S.C. section 107, this material is distributed without charge or profit to those who have expressed a prior interest in receiving this type of information for non-profit research and educational purposes only. |||||||||||||||||||||||||||||||||||||||||||||||||||||||||| http://www.angelfire.com/mi/smilinks/thirdeye.html |||||||||||||||||||||||||||||||||||||||||||||||||||||||||| I have never let my schooling interfere with my education. -- Mark Twain ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. 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