Tiger Trap

by David Wise

  Rudy Guerin, a former veteran FBI counterintelligence street agent, talked about the risks of running informants too long. "After PARLOR MAID, one of the procedures we put in place, you should not run a source for more than a couple of years."

  Asked about the informant who fabricated the story about Jeff Wang, Guerin replied: "This source had been run for a long period of time. Agents bond with their sources if they run them for a long time, as happened with PARLOR MAID. Agents tend to take things their sources tell them and write it up and say it's gold. Maybe you have to use bad guys in drug cases, but when working espionage and someone sets up a US citizen, you can't do that."

  No recent president, Bill Clinton, George W. Bush, or Barack Obama, has wanted to make a high-decibel issue of Chinese espionage. With the United States struggling in 2010 to recover from the worst economic crisis since the Great Depression, Washington could hardly afford to alienate its banker. Indeed, a year earlier, Chinese premier Wen Jiabao lectured the United States about its economic policies. "We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried."

  Aside from the US-China economic embrace, the Obama administration was seeking Beijing's help in curbing North Korea's nuclear weapons and preventing Iran from building a bomb. Short of a revelation that China has planted a mole in the White House, or wired Bo, the Obama family dog, Washington is not likely to fuss too loudly about Chinese spies.

  How damaging to national security is Chinese espionage?

  When the question was put to FBI director Robert S. Mueller III at a 2007 hearing of the House Judiciary Committee, he replied: "I can probably say more in a classified setting. I can say that it is a substantial concern. China is stealing our secrets in an effort to leap ahead in terms of its military technology, but also the economic capability of China. It is a substantial threat."

  In an earlier report to Congress, the FBI said, "Penetrating the US intelligence community is a key objective of the Chinese." Ironically, at the time of that warning, the MSS had already done exactly that through PARLOR MAID.

  Aside from classic espionage, China has benefited from the widespread export of military equipment in violation of US laws. The instances are far too numerous to catalog. In the three years from 2006 to 2009, there were literally dozens of prosecutions for illegal shipments to China of defense equipment, including integrated circuits, thermal imaging cameras, night-vision goggles, restricted computer software, smart-bomb components, and parts for radar and missile systems.

  Infiltrating the CIA and the FBI, and stealing the secret measurements of the W-88 nuclear warhead and the design details of the neutron bomb are flagrant examples of China's espionage successes.

  "If we're talking about violations of U.S. law, the Chinese are surpassing the Russians," according to Harry J. Godfrey III, the former head of Chinese counterintelligence at FBI headquarters. "We know they are running operations here. We have seen cases where they have encouraged people to apply to the CIA, the FBI, Naval Investigative Service and other defense agencies."

  Porter J. Goss, former chairman of the House Intelligence Committee and later director of the CIA, said of Chinese espionage against the United States, "It's pervasive, ubiquitous, constant."

  Joel Brenner, the former counterintelligence chief for the director of national intelligence, has a gift for talking in sound bites. Referring to the tasking list that the Chinese gave to Chi Mak, Brenner said: "You can get to know the dragon by its claw, and the list was a clear picture of the dragon's claw."

  Harold Agnew, a physicist who worked on the Manhattan Project, flew over Hiroshima on August 6, 1945, in an observation plane behind the Enola Gay, and watched the uranium bomb devastate that Japanese city. As head of the weapons division at Los Alamos, and later director of the laboratory, he designed most of the nation's nuclear arsenal. In the 1980s he was the first American scientist allowed to visit Lop Nor, China's secret nuclear test site.

  "They had everything," he told an oral history project in 2005. "They're in our knickers and there's maybe one under the couch."

  The "dragon's claw" and Harold Agnew's colorful metaphors are eye-catching hyperbole, but they also contain a good deal of truth. Without exaggerating the danger of Chinese espionage, or magnifying the threat, it is a fact that China's spying on America is ongoing, current, and shows no sign of diminishing. The conflict is no less real for being mostly unseen.

  Two decades ago, a revealing handbook for spies was published in China by two veteran intelligence researchers, Huo Zhongwen and Wang Zongxiao. The book, Sources and Techniques of Obtaining National Defense Science and Technology Intelligence, tells how to gather secret information in the United States. Most intelligence can be collected from open sources, the authors explained, although about 20 percent must be obtained by "special means," including "electronic eavesdropping, and the activities of special agents (purchasing or stealing)." But, by mining "the vast amount of public materials and accumulating information a drop at a time, often it is possible basically to reveal the outlines of some secret intelligence."

  They noted that some years ago, the Department of Energy had mistakenly declassified almost twenty thousand documents, including "at least eight highly secret items regarding thermonuclear weapons." They admitted, however, that gathering defense and technology information can be difficult because of security classifications.

  Difficult, but not impossible, they wrote. The authors of the espionage guide reminded their readers of a common Chinese saying: "There are no walls which completely block the wind."

  Author's Note

  When, years ago with Thomas B. Ross, I coauthored The U-2 Affair, the story of the CIA spy plane shot down over the Soviet Union, I did not realize at the time that I was embarking on a career of writing books about espionage and intelligence.

  For most of the intervening years, I studied and reported on the Cold War battle between the CIA and the FBI and the Soviet, now Russian, intelligence services. I wrote of moles and men, of Edward Lee Howard, Aldrich Ames, and Robert Hanssen. To follow the trail of those stories, I traveled to Moscow four times and to many other locales.

  Only in the past decade did I come to the growing realization that there was another narrative waiting to be written, the largely unexplored story of China's espionage against the United States. With the encouragement and support of Sterling Lord, my longtime literary agent, I expanded my initial research on the PARLOR MAID case into a broader examination of Chinese espionage spanning the last several decades, up to and including the present.

  Like all or most countries, including the United States, China steals secrets. The Chinese have had some notable successes, and some failures as well. The risks posed by their activities in the United States, and the damage done to national security, should not be exaggerated, or ignored.

  To write this book, I conducted almost five hundred interviews, with more than 150 people. Given the sensitive nature of counterintelligence, and the ingrained reluctance of CI officers and agents to talk about their work, some declined to speak with me. Many others agreed to be interviewed only on condition that they not be identified. I have respected their wishes.

  For their generous assistance on this book I wish to thank Plato Cacheris, and also John F. Hundley, of Trout Cacheris, Lily Lee Chen, Stacy Cohen, John D. Cline, Christopher Cox, James A. Geis, Marc S. Harris, James D. Henderson, Mark C. Holscher, Henry V. Huang, Marianna Liu, Angela Machala, Jonathan E. Medalia, Robert S. Norris, Mary Palevsky, Philip D. Polsky, David Ryan, Federico C. Sayre, Jonathan Shapiro, Perry J. Spanos, Jerry Stockton, Brian A. Sun, Nart Villeneuve, Michael Woo, and Peter Woo.

  Katrina Leung declined to be interviewed, but her husband, Kam Leung, spoke to me openly and at length over a period of two days in 2003, and the biographical details about his wife that he provided, as well as his account of their life together and their trips to China, were invaluabl
e and much appreciated.

  My especial thanks go to Michael P. Kortan, the FBI's assistant director for public affairs, who did his best to pry loose an occasional morsel from the bureau's famously reticent counterintelligence division. I also appreciate the assistance I received from his predecessor, John J. Miller, and from Bill Carter and Susan T. McKee of the Public Affairs Office. In Los Angeles, Laura Eimiller of the FBI's Public Affairs Office was always helpful.

  A number of former FBI agents and bureau officials were willing to share their insights and experience, including Robert M. "Bear" Bryant, Bruce Carlson, Tom Carson, Edward J. Curran, Stephen W. Dillard, Neil J. Gallagher, Harry J. Godfrey, Dan Grove, Rudy Guerin, John L. Hoos, Sheila Horan, Jack Keller, Jay Koerner, John F. Lewis Jr., T. Van Magers, John J. O'Flaherty, Phillip A. Parker, Kenneth J. Schiffer, I. C. Smith, Raymond H. Wickman, and Leslie G. Wiser Jr.

  I am greatly indebted as well to the many other former FBI counterintelligence agents who preferred not to be quoted or have any material attributed to them. This book would have been incomplete without their generous time and assistance. I thank them all; they know who they are.

  Among the former CIA officials and officers interviewed were Porter J. Goss, who served as Director of Central Intelligence in 2004-5, Milton A. Bearden, Jennifer Millerwise Dyck, Colin R. Thompson, and Robert S. Vrooman.

  At the Department of Justice, I appreciate the help I received from Dean Boyd, the public affairs officer for national security, and in Los Angeles, from Thom Mrozek, the media spokesperson for the US Attorney's Office. Michael W. Emmick, the former assistant US attorney in Los Angeles who was the lead prosecutor of Katrina Leung, was especially patient with my questions, as was Rebecca Lonergan, the former assistant US attorney in that office and the lead prosecutor of J.J. Smith. I also appreciate the assistance I received from Erica O'Neil, an assistant U.S. attorney in Milwaukee.

  From the Department of Energy, I benefited from conversations a decade ago with then-secretary Bill Richardson, Lawrence H. Sanchez, director of the Office of Intelligence, and Notra Trulock, the acting deputy director of that office. I also thank Stephen Wampler, of the Public Affairs Office at the Lawrence Livermore National Laboratory.

  In threading my way through the intricacies of the science and control of nuclear weapons, I am indebted to Thomas B. Cochran, of the Natural Resources Defense Council, Richard L. Garwin, George A. "Jay" Keyworth, the former White House science adviser, and Daryl G. Kimball, executive director of the Arms Control Association.

  Several friends and members of the news media were helpful, including Pete Williams of NBC, Matthew Barakat of the Associated Press, and Greg Krikorian, formerly of the Los Angeles Times.

  Chen-yieh Catherine Yu, assistant professor of Chinese at Georgetown University, graciously answered several questions about Chinese language and usage. Jeffrey T. Richelson of the National Security Archive was more than generous with his help and guidance. My thanks as well go to Ian M. Cunningham, who provided me with skillful research assistance at several points along the way. Alexandra and Elizabeth Evans cheerfully kept my newspaper files current.

  I especially want to thank Bruce Nichols, senior vice president and publisher of Houghton Mifflin Harcourt, whose steadfast support and enthusiasm for this project made it possible, and is deeply appreciated by me. The manuscript also benefited greatly from the skillful editing of Martin Beiser. Others at the publishing house deserve my thanks as well, including assistant editor Christina Morgan, production editor Rebecca Springer, Laura Brady, who presided over the photo section, and Melissa Dobson, the dedicated copyeditor.

  And finally, I am enormously grateful to my wife, Joan, who over these many long months heard more about Chinese spies than she may have wanted to know but who was always patient and supportive. Her love and understanding deserve the most thanks of all.

  —DAVID WISE

  Washington, DC

  October 1, 2010

  Notes

  Unless otherwise noted, the interviews cited were conducted by the author. The Intelligence Resource Program of the Federation of American Scientists (http://www.fas.org/irp) archives a variety of resources relating to intelligence matters. Links to documents available at the FAS website have been included in notes where possible.

  Key to abbreviations for documents cited in PARLOR MAID case:

  RT: Affidavit of FBI special agent Randall Thomas for complaint and arrest warrant of Katrina Leung, April 8, 2003.

  RT2: Affidavit of FBI special agent Randall Thomas for search warrant of Leungs' bookstore and home, December 20, 2002.

  OIG DOJ: Office of Inspector General, Department of Justice, Unclassified Executive Summary, "A Review of the FBI's Handling and Oversight of FBI Asset Katrina Leung."

  PRELUDE

  page

  [>]VIP audience of one thousand at the Biltmore Hotel in Los Angeles: Matt Krasnowski, "Ambivalence, Excitement, Anger to Greet Chinese President Jiang in Los Angeles," Copley News Service, October 31, 1997; K. Connie Kang and David Rosenzweig, "Plain-Faced L.A. Consulate Is No Ordinary Installation," Los Angeles Times, November 2, 1997, p. A14.

  [>]"One silver moon over the window sill": the description of President Jiang Zemin's vocalizing is from Kam Leung interview, June 26, 2003.

  [>]"You won't believe who I just ran into.... It was Gwo-bao Min": I. C. Smith interviews, May 1, 2003, July 1, 2003, and July 7, 2010. See also I. C. Smith, Inside: A Top G-Man Exposes Spies, Lies, and Bureaucratic Bungling in the FBI (Nashville, TN: Nelson Current, 2004), p. 121. In his book, Smith refers to Min as "Mr. Lee," and writes that the FBI would not allow him to use "Mr. Lee's" true name or the code name of the investigation.

  [>]"the same guy kept showing up": Smith interview, May 1, 2003.

  [>]"Neither one of us believed in coincidences": Ibid.

  1. "A THOUSAND GRAINS OF SAND"

  [>]The secret headquarters of the Ministry of State Security: Discussion of the history and organization of the MSS draws upon the Intelligence Resource Program of the Federation of American Scientists, http://www.fas.org/irp; multiple interviews with former US counterintelligence agents; Jeffrey T. Richelson, Foreign Intelligence Organizations (Cambridge, MA: Ballinger Publishing Co., 1988), chap. 9; Patrick E. Tyler, "Cloak and Dragon; There Is No Chinese James Bond. So Far," New York Times, March 23, 1997, sec. 4, p. 1; Lo Ping, "Secrets About CPC Spies—Tens of Thousands of Them Scattered Over 170-Odd Cities Worldwide," Cheng Ming (Hong Kong), January 1, 1997, pp. 6–9 (US Foreign Broadcast Information Service [FBIS] Daily Reports, CHI-97-016, January 1, 1997); Tan Po, "Spy Headquarters Behind the Shrubs—Supplement to 'Secrets About CPC Spies,'" Cheng Ming, March 1, 1997, pp. 34–37 (FBIS Daily Reports, CHI-97-047, March 1, 1997).

  [>]Chien Men, which means "front door": Chien Men is also the name of Beijing's main gate, the scene of heavy fighting by US Marines in August 1900 during the Boxer Rebellion.

  [>]Geng Huichang, fifty-six ... moved up to become MSS chief: Jim Yardley, "China Replaces Key Ministers," New York Times, August 31, 2007; see also Xinhua News Agency, August 31, 2007, cited in "Who's Who in China's Leadership," China Internet Information Center, http://www.china.org.cn/english/MATERIAL/222718.htm.

  [>]Zou spoke of the "tens of thousands of nameless heroes ...": Ping, "Secrets About CPC Spies."

  [>]Sun Tzu ... is credited with writing the classic treatise Ping-fa, or The Art of War: The discussion of Sun Tzu's five kinds of intelligence agents is adapted from Allen Dulles, The Craft of Intelligence (New York: Harper & Row, 1963), p. 13.

  [>]"Know the enemy and know yourself ...": There are various versions of this quotation attributed to Sun Tzu. One rendering often quoted and paraphrased appears in Sun Tzu on the Art of War, translated from the Chinese with an introduction and critical notes by Lionel Giles (London: Luzac & Co., 1910), chap. 3, par. 18: "If you know the enemy and know yourself, you need not fear the result of a hundred battles."

  [>]Kang Sheng was the sinister and powerful s
pymaster: David Wise and Thomas B. Ross, The Espionage Establishment (New York: Random House, 1967), pp. 176–79; Roger Faligot and Remi Kauffer, The Chinese Secret Service (New York: William Morrow & Co., Inc., 1987), pp. 10–14ff.

  [>]"a thousand grains of sand": Paul Moore interview, July 2, 2003.

  [>]a modern complex in Yasenevo: The description of the KGB's foreign intelligence headquarters off the Moscow ring road is based on personal observation. The author was the first Western writer allowed to visit the complex. See David Wise, "Closing Down the K.G.B," New York Times Magazine, November 24, 1991, pp. 30–32, 68.

  [>]"China has a different approach to intelligence": Moore interview, August 19, 2008. Moore's quotes in this chapter on Chinese intelligence methods and how they differ from Russian tradecraft are from this interview and the July 2003 interview cited earlier.

  [>]"You may be talking about a different kind of espionage": John F. Lewis Jr. interview, July 26, 1999.

  [>]"discreetly dipping their ties": Terrorism and Intelligence Operations: Hearing Before the Joint Economic Committee, Congress of the United States, 105th Cong. (May 20, 1998), statement by Nicholas Eftimiades, http://www.fas.org/irp/congress/1998_hr/eftimiad.htm.

  [>]the most bizarre example ... is the case of Bernard Boursicot: Richard Bernstein, "France Jails 2 in Odd Case of Espionage," New York Times, May 11, 1986, p. 7; "France Pardons Chinese Spy Who Pretended to Be Woman," New York Times, April 10, 1987; Richelson, Foreign Intelligence Organizations, pp. 300–1. M. Butterfly, the Broadway play based on the Boursicot story, is discussed in Jeremy Gerard, "David Hwang: Riding on the Hyphen," New York Times Magazine, March 13, 1998.

  [>][Footnote] "After he showed me the code keys": Boris Solomatin interview, Moscow, September 24, 1991.

  [>]American technology companies "are purchased outright by Chinese state-run firms": Terrorism and Intelligence Operations: Hearing, Eftimiades statement.