Report: US, Germany spied on countries via Swiss firm
February 11, 2020
Western intelligence acquired top secret information on global governments through their hidden control of an encryption firm, Crypto AG, according to media reports. Swiss authorities are investigating the allegations.
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The United States and the former West Germany spent several decades spying on numerous countries by fronting a Swiss company that sold encryption products, according to a joint report on Tuesday published by TheWashington Post in the US and public broadcasters ZDF in Germany and SRF in Switzerland.
Intelligence officials in the US and the Federal Republic of Germany reportedly formed a Swiss-based firm, Crypto AG, which then sold its products to well over 100 nations. These customers allegedly did not know their encrypted communications would not be a secret from two major NATO powers.
Swiss authorities said later on Tuesday that they had opened an investigation into the allegations that the encryption devices organization was a front operated by the the CIA and West German intelligence that enabled them to break the codes of the countries using their products.
Hacking for Germany
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Knowledge of world events
Iran, India and Pakistan, along with military juntas in Latin America and the Vatican, were all cited as clients of the operation, the two media outlets reported.
The access to communications within governments aided the US to gain insights into global events, from the 1979 hostage crisis in Iran to the Libyan bombing of a Berlin disco in 1986. The media outlets also reported that Crypto gave Britain information about Argentina's military operations during the Falklands War.
The Soviet Union and China did not buy encryption devices from Crypto AG, which kept the communist adversaries safe from the prying eyes of the West.
Inside Germany's new spy HQ
The German Intelligence Agency (BND) has relocated to its massive new base in the capital after decades in provincial Pullach. The move is hugely symbolic for a country long skeptical of spy agencies.
Image: picture-alliance/dpa/M. Kappeler
In the heart of Berlin
Decorated with steel palm trees, the new BND headquarters sits right where the Berlin Wall used to bisect the city. The move signals a major symbolic change for Germany, no longer shying away from taking a prominent role on the global stage.
Image: picture-alliance/dpa/K. Nietfeld
Palatial grounds
The limestone and aluminum-fronted complex covers 10 hectares (25 acres) and cost €1.1 billion ($1.25 billion). It is one of the world's largest secret service bases.
Image: picture-alliance/dpa/M. Kappeler
The thing
A huge monolith called "The Thing" (Das Ding) adorns the central courtyard of the new headquarters. The work was created by the Düsseldorf-based artist Stefan Sous, whose massive sculptures can be found in public squares thoughout Germany.
Image: picture-alliance/dpa/M. Kappeler
A glimpse inside
There are plans to open a visitors center at the new BND headquarters. This marks a massive shift for a populace that has long been suspicious of intelligence agencies, with memories of the Gestapo and the Stasi still alive. "A healthy distrust is helpful, but being overly suspicious is a hindrance," Chancellor Angela Merkel said at the opening.
Image: picture-alliance/dpa/M Kappeler
Keeping tabs on time
The clock in the situation room shows the time in New York, London, Berlin, Moscow and Beijing. The building itself, however, did not open on time. A series of delays, mishaps and cost overruns. The inauguration in February 2019 came more than 12 years after construction began.
Image: picture-alliance/dpa/M. Kappeler
The situation room
Around 4,000 of the BND's 6,500 secret service agents work in the huge new building. Merkel stressed that Germany "needs a strong and efficient foreign intelligence service more than ever." International terrorism, global organized crime structures, as well as cybersecurity and nuclear proliferation are among the challenges the BND is looking to target.
Image: picture-alliance/dpa/M. Kappeler
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Rumors
The BND, Germany's spy agency, pulled out of the venture in 1993 but the CIA maintained the relationship until 2018, when Crypto was liquidated.
Erich Schmidt-Eenboom, a German intelligence expert and author of several books on espionage during the Cold War era, told the Associated Press news agency that the involvement of western spy agencies in Crypto had been suggested for some time. In 1992, a Crypto representative was detained in Iran and spent several months in jail. The BND allegedly paid a $1 million dollar ransom for the Crypto employee's release.
The incident was one of the reasons why the German spy agency pulled out of the joint operation a year later, Schmidt-Eenboom said.
The Swiss Defense Department said in a statement that the government in Bern had decided to look into the matter and report findings within a year, but also sounded an advanced note of caution.
"The events under discussion started around 1945, and it is difficult to reconstruct them," the statement warned.
Technologies that revolutionized warfare
Artificial intelligence (AI) experts have warned about the dangerous "revolution" that would occur if lethal autonomous weapons were developed. But what are some of the other inventions that revolutionized warfare?
Image: Getty Images/E. Gooch/Hulton Archive
Artificial Intelligence: 'Third revolution in warfare'
More than 100 AI experts have written to the UN asking them to ban lethal autonomous weapons — those that use AI to act independently. No so-called "killer robots" currently exist, but advances in artificial intelligence have made them a real possibility. Experts said these weapons could be "the third revolution in warfare," after gunpowder and nuclear arms.
Image: Bertrand Guay/AFP/Getty Images
Gunpowder
The "first revolution in warfare" was invented by the Chinese, who started using the explosive black substance between the 10th and 12th centuries to propel projectiles in simple guns. It gradually spread to the Middle East and Europe in the following two centuries. Once perfected, firearms using gunpowder proved to be far more lethal than the traditional bow and arrow.
Image: Getty Images/E. Gooch/Hulton Archive
Artillery
The invention of gunpowder also introduced artillery pieces to the battlefield. Armies started using basic cannons in the 16th century to fire heavy metal balls at opposing infantrymen and breach defensive walls around cities and fortresses. Far more destructive field guns were invented in the 19th century and went on to wreak havoc in the battlefields of World War I.
Image: picture-alliance/akg-images
Machine guns
Guns that fire multiple rounds in rapid succession were invented in the late 19th century and immediately transformed the battlefield. Machine guns, as they came to be known, allowed soldiers to mow down the enemy from a protected position. The weapon's grisly effectiveness became all too clear in WWI as both sides used machine guns to wipe out soldiers charging across no man's land.
Image: Imperial War Museums
Warplanes
Military thinkers did not ignore the invention of the first airplane in 1903. Six years later, the US military bought the first unarmed military aircraft, the 1909 Wright Military Flyer. Inventors experimented with more advanced fighter and bomber aircraft in the following years. Both became standard features in many of the national air forces established by the end of WWI.
Image: picture-alliance/dpa/dpaweb/U.S. Airforce
Mechanization
Armies had traditionally used soldiers and horses to fight and transport military equipment. But around WWI, they started using more machines such as tanks and armored vehicles. Faster and more destructive armies were the result. Nazi Germany put this new form of "mechanized warfare" to destructive effect in WWII using an attack strategy known as "Blitzkrieg" ("lightning war").
Image: ullstein bild - SV-Bilderdienst
Missiles
Although artillery was effective, it had a relatively limited range. The missile's invention in WWII suddenly allowed an army to strike a target hundreds of kilometers away. The first missile — the German V-2 — was relatively primitive, but it laid the foundation for the development of guided cruise missiles and intercontinental ballistic missiles (ICBM) capable of carrying nuclear warheads.
Image: picture-alliance/dpa
Jet engine
Jet aircraft first saw action alongside traditional propeller airplanes at the end of WWII. Jet engines dramatically increased an aircraft's speed, allowing it to reach a target quicker and making it far harder for an adversary to shoot it down. After WWII, military reconnaissance planes were developed that could fly higher than 25 kilometers (15.5 miles) and faster than the speed of sound.
Image: picture-alliance
Nuclear weapons
The "second revolution in warfare" announced its horrific arrival on August 6, 1945, when the US dropped the first nuclear bomb — "Little Boy" — on the city of Hiroshima in Japan, killing between 60,000 and 80,000 people instantly. In the Cold War that followed, the US and Soviet Union developed thousands of even more destructive warheads that raised the specter of a devastating nuclear war.
Image: Getty Images/AFP
Digitization
Recent decades have witnessed the ever more prevalent use of computers to conduct war. The devices made military communication quicker and easier and radically improved the precision and efficiency of many weapons. Armed forces have recently focused on developing cyber warfare capabilities to defend national infrastructure and attack foreign adversaries in cyberspace.