DATE=3/30/2000
TYPE=CORRESPONDENT REPORT
TITLE=EUROPE SPY (L ONLY)
NUMBER=2-260767
BYLINE=RON PEMSTEIN
DATELINE=BRUSSELS
CONTENT=

VOICED AT:

INTRO:  The European parliament plans to vote next 
month on a resolution condemning the U-S-led Echelon 
spy network for industrial espionage against European 
businesses.  Correspondent Ron Pemstein reports from 
Brussels.

TEXT:  Echelon was set up in 1971 as an electronic 
monitoring system during the Cold War.  

European-Union member Britain helps operate the 
system, along with listening posts in Canada, 
Australia, and New Zealand.  A British news report 
says the system led by the U-S National Security 
Agency has engaged in industrial espionage against 
European businesses.  

Green Party members of the European Parliament 
demanded a committee of inquiry look into the charges.  
They cite reports Echelon is capable of intercepting 
phone calls, electronic mail, and fax messages.  They 
also say information gathered on Echelon helped the 
United States beat the European Airbus Consortium in 
selling aircraft to Saudi Arabia in 1994.

The European Commission has a problem in investigating 
these damages.  Commission spokesman Jonathan Faull 
explains that no European business has complained 
about damages from spying.

            /// FAULL ACT ONE ///

      Nobody has come forward, and we should certainly 
      be interested in talking to people who want to 
      come forward, but nobody has done so.

            /// END ACT ///

Another problem is that Britain is a member of the 
European Union.  In a letter released by the 
Commission, the British government cities 1985 
legislation that authorizes interception of 
communications in cases involving - safeguarding the 
nation's economic well-being.

The Commission also has a letter from the State 
Department stating that - the U-S intelligence 
community is not engaged in industrial espionage.  The 
letter also says the U-S government does not collect 
information for the benefit of private firms.

The European Commission has been aggravated by 
interviews given by the former director of the U-S 
Central Intelligence Agency, James Woolsey.  He has 
justified industrial espionage by the United States on 
the basis of the use of bribery by European companies.

Commission spokesman Faull expresses outrage about the 
justification, while not denying bribery is sometimes 
used to make a sale.

            /// FAULL ACT TWO ///

      I do not deny that cases of bribery arise in all 
      sorts of countries by the way, not only in 
      Europe, from time to time, I am not that naive.  
      What I am saying is outrageous is - the 
      suggestion is that espionage could be justified 
      in order to redress some apparent imbalance 
      caused by the fact that European companies are 
      considered to bribe more than American 
      companies.

            /// END ACT ///

In the European Parliament's debate, Portuguese 
Interior Minister Fernando Gomes says the E-U justice 
ministers will discuss the Echelon system in their 
next meeting at the end of April.  

He says the European Union cannot accept the existence 
of such a system that violates data privacy.  But he 
also says there is no evidence that companies ever 
benefited from communications interception or have 
been damaged by it.   (SIGNED)
 
NEB/RDP/JWH/RAE



30-Mar-2000 10:10 AM EDT (30-Mar-2000 1510 UTC)
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Source: Voice of America
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