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EUROPEAN PARLIAMENT COMMITTEE SAYS IT CAN PROVE ECHELON EXISTS

Angered by U.S. agencies’ refusal to meet them this week, members of European Parliament (EP) committee investigating existence of global communications interception system said Thurs. they were cutting their trip short and returning home. EP Temporary Committee on ECHELON Interception System, which allegedly can intercept Internet, telephone and fax communications, has been looking into impact and structure of spy system and its function within association of English-speaking nations called UKUSA, Chmn. Carlos Coelho said at news conference at EP hq in Washington. One month ago, he said, committee’s chief of staff began scheduling meetings with congressional and Administration officials to discuss ECHELON. However, Coelho said, “we are concerned and dismayed that scheduled meetings with the State Department, with the Advocacy Center of the Department of Commerce [DoC] were cancelled at the last minute without a satisfactory explanation.”

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Group was especially aggravated by last-minute decisions by both Central Intelligence Agency (CIA) and National Security Agency (NSA) that meetings would be “inappropriate,” Coelho said. Because there have been allegations during committee’s investigation of CIA and NSA activities on ECHELON, he said, members thought it fair to hear American side of story. One allegation, said committee rapporteur Gerhard Schmid, is that interception of civilian Internet and other communications is being misused by those agencies for economic espionage on behalf of U.S. companies. At congressional hearing last year, he said, CIA and NSA denied such activities. If that’s true, he asked, why is CIA involved in activities of DoC Advocacy Center, office that helps American business compete overseas?

There’s no doubt that ECHELON exists, both men claimed. Although committee hasn’t completed its work and drafted its final report, Coelho said, his personal opinion as member of European Commission is that there is interception system. Whether it actually is called ECHELON isn’t clear, Schmid said, but there is satellite system that intercepts private and business communications, and “we can prove it.” Question is, what’s system used for? he asked. There are 3 areas where U.S. might want to gather information to help American businesses: (1) Where software is being developed and designed simultaneously in different time zones, and information about it could be interesting to competitors. (2) Where contract negotiating team has traveled to another country and reports back to its home base on terms. (3) Where communications for multinational corporations are handled via satellite transmissions that, if intercepted, could be useful.

Satellite spying isn’t new, Schmid said, but ECHELON’s global reach is. It’s also troubling that one of its partners also is member of European Union, he said: “This has at least to be discussed.” It’s normal for agencies to share intelligence, he said, but not “raw material” of communications. Information- sharing agreements usually are bilateral accords between intelligence services, he said, and ECHELON information is shared daily and widely.

Asked whether U.S. ever had acknowledged existence of ECHELON, Schmid said there had been no official statement that recognized its existence. However, he said, if you look at people’s faces when they're talking about ECHELON, “you can learn something.” Not only that, he said, but system’s existence is evident from fact there are satellite listening posts around world with large antennas that clearly are keying in on lower frequency communications -- something military wouldn’t be doing. There’s no need for equipment that collects 100,000 communications for military operations, Schmid said.

EP committee received warm welcome from House Permanent Select Committee on Intelligence, Electronic Privacy Information Center, Justice Dept. and others on Hill, Coelho said. But it’s something of “diplomatic affront” to have been turned away from discussions with other agencies, he said. EP isn’t trying to put more strains on the relationship between U.S. and European countries, he said, but committee doesn’t understand Administration’s decision, and isn’t leaving “happily.”

Committee member Charlotte Cederschiold is very “America- friendly,” she told us. She came to U.S. with “the intention to work closely with Americans” on ECHELON issue, she said, but developments here will complicate her work at home as strong American supporter.

Draft report on ECHELON will be available at end of May, EP Head of Secretariat David Lowe said. Report and its recommendations will be debated in EP in Sept., he said. If parliament accepts report, EU and EC will have to respond to it in plenary session, Lowe said.