DATE=3/13/98 TYPE=CORRESPONDENT REPORT NUMBER=2-228107 TITLE=RUSSIA / NORWAY (L) BYLINE=PETER HEINLEIN DATELINE=MOSCOW CONTENT= VOICED AT: INTRO: RUSSIA'S RELATIONS WITH NORWAY HAVE BEEN SETBACK BY WHAT IS BEING CALLED THE MOST SERIOUS SPY CASE BETWEEN THE TWO NEIGHBORS SINCE THE END OF THE COLD WAR. V-O-A MOSCOW CORRESPONDENT PETER HEINLEIN REPORTS RUSSIA IS THREATENING TO RETALIATE AFTER FIVE OF ITS DIPLOMATS WERE ORDERED TO LEAVE OSLO. TEXT: RUSSIA'S FOREIGN MINISTRY FRIDAY EXPRESSED BEWILDERMENT AT THE LATEST ESPIONAGE CASE. A SPOKESMAN SAID RUSSIA RESERVES THE RIGHT TO RESPOND IN KIND TO NORWAY'S DECISION TO EXPEL TWO DIPLOMATS AND BAR THREE OTHERS FROM RE-ENTERING THE COUNTRY. BUT DETAILS PUBLISHED AN AN OSLO NEWSPAPER INDICATE THE DIPLOMATS WERE CAUGHT IN THE ACT (OF SPYING) DURING A FOUR-YEAR COUNTERINTELLIGENCE (STING) OPERATION. NORWAY'S LARGEST CIRCULATION NEWSPAPER, VERDENS GANG, TOLD THE STORY OF A MID-LEVEL BUREAUCRAT WHO ACTED AS A DOUBLE AGENT, ACCEPTING CASH FROM MOSCOW IN RETURN FOR FAKE SECRETS TO HELP EXPOSE THE RUSSIAN ESPIONAGE OPERATION. THE BUREAUCRAT, 47-YEAR OLD SVEIN LAMARK, WAS QUOTED AS SAYING THE RUSSIANS WERE INTERESTED IN INFORMATION ABOUT RUSSIA-NORWAY RELATIONS, OIL AND GAS ISSUES, AND NATO. NORWAY IS THE ONLY NATO COUNTRY BORDERING RUSSIA. A SPOKESWOMAN FOR RUSSIA'S INTELLIGENCE SERVICE ATTEMPTED TO DOWNPLAY THE CASE FRIDAY. SPOKESWOMAN TATYANA SAMOLIS EXPRESSED THE HOPE DAMAGE TO RELATIONS BETWEEN MOSCOW AND OSLO COULD BE KEPT TO A MINIMUM. /// SAMOLIS ACT - IN RUSSIAN - FADE UNDER /// SHE SAID, "ESPIONAGE IS A USUAL, ROUTINE THING," ADDING "THERE IS NO NEED TO DRAMATIZE IT." ANOTHER RUSSIAN INTELLIGENCE OFFICIAL CALLED THE CASE "A THROWBACK TO THE COLD WAR." MS. SAMOLIS SAID THE SPY AFFAIR HAS ERUPTED AT AN UNFORTUNATE MOMENT, JUST ONE WEEK BEFORE A PLANNED VISIT TO MOSCOW BY NORWAY'S PRIME MINISTER, KJELL MAGNE BONDEVIK. THAT VISIT HAS BEEN PUT OFF INDEFINITELY. /// SAMOLIS ACT - IN RUSSIAN - FADE UNDER /// MS. SAMOLIS SAID IF POLITICIANS BEGIN TO PUBLICIZE SPY CASES, IT USUALLY MEANS THEY HAVE SOME NEED TO DO SO. SHE SAID MOST OF THE TIME, INCIDENTS INVOLVING ESPIONAGE ARE HANDLED QUIETLY BETWEEN INTELLIGENCE SERVICES. NORWEGIAN RADIO FRIDAY REPORTED AUTHORITIES HAD HOPED TO KEEP THE CASE QUIET UNTIL AFTER PRIME MINISTER BONDEVIK'S VISIT. BUT THEY DECIDED TO GO PUBLIC AFTER LEARNING VERDENS GANG WAS PUBLISHING THE STORY IN ITS FRIDAY EDITION. (SIGNED) NEB/PFH/JWH 13-Mar-98 12:35 PM EST (1735 UTC) NNNN Source: Voice of America .