FIRST JACK ANDERSON COLUMN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP94B00280R000700010006-5
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: March 11, 2011
• Sequence Number: 6
• Publication Date: January 29, 1985
• Content Type: CABLE

STAT
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- \ [N(tiSY1sn5 rUSfi
Jack Anderson
~~ c 2 7 JAN 1985
High-Tech Leaks
The . massive leaks of militarily useful tech-
nology from West Germany to the Soviet bloc will
take years to plug, according to a secret CIA re-
port. The reason is that the West Germans simply
don't want to shut down the profitable high-tech
traffic.
This is the sobering conclusion of the CIA re-
port, titled "'transfer of Strategic Technology to
the Soviet Union from West Germany." My as-
sociates Michael Binstein and Dale Van Atta have
reviewed the highly sensitive report.
The CIA notes that the West Germans have
traditionally paid lip service to the idea of limiting
the flow of military technology to the Soviet bloc.
But West Germany has opposed putting any teeth
into the repeated attempts to restrict the traffic
as recommended by. COCOM, the coordinating
committee set up by the Western allies to control
West-East trade.
"The Kohl government, like previous govern-
ments, sees expanding trade between West Ger-
many and the Soviet Union as essential to its
economy and its balance of foreign trade," the
6IA explains. "West Germany will therefore con-
tinue to interpret COCOM regulations narrowly
in its own best interests. West Germany is (also)
opposed to trade embargoes for political purposes
and will resist U.S. attempts to exercise extrater-
ritorial control over West German subsidiaries of
U.S. firms.";
The report chides West German licensing au-
thorities and intelligence agencies as "ineffec-
tive" in trying to control illegal technology sales
to the Soviets. They have acted effectively only
when "outside sources" (the CIA, presumably)
have given them evidence of illegalities.
Here are some specific points the report makes
about the West Germans' performance:
^ The diversity and efficiency of West Germa-
ny's industries and banks, its excellent transpor-
tation system and its convenient location next
door to Soviet-bloc nations and neutral countries
make it an obvious target for Soviet efforts to ob-
tain Western high-tech items.
^ "Small, entrepreneurial firms in West Ger-
many ... continue to be the main instrument of
Soviet-bloc diversionary efforts.... An industrial
security-awareness program is needed to sensi-
tize law-abiding West German firms."
^ Soviet military shoppers take full advantage
of West Germany's system of bonded customs
transit zones, where customs agents are forbid-
den to snoop without evidence of probable viola-
tions. "Customs agents should be sensitized to
the need for inspection of suspicious shipments,"
the CIA report says, "in particular those received
from abroad which are reconsigned to a foreign
destination without being delivered to their origi-
nal West German consignee."
^ The fox is in charge of the chicken coop. Ex-
port controls are a responsibility of the Ministry
of Economics, which wants to encourage foreign
trade. Not surprisingly, the trade control office
suffers from understaffing and other problems,
the CIA reports.
The report glumly predicted that "it will be sev-
eral years before West German enforcement is sig-
nificantly improved in the area of illegal trade."
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JACK ANDERSON
Germany Is West's Worst Security Risk
Of all our allies, West Germany is the worst
security risk. The Federal Republic has
become the greatest single source for
sensitive Western technology that seeps to the
Kremlin.
For years my sources have been telling me that
no country `leaked" as much militarily useful
technology to the Soviets as West Germany. I was
skeptical. But a recent Central Intelligence Agency
report to the National Security Council is
powerfully persuasive.
The report, plus two related CIA reports, all
classified ".secret," have been obtained by my
associates Dale Van Atta and Michael Binstein.
Because of the potential embarrassment to U.S.
allies,. they have also been stamped "Noforn," a-
classification meaning "No Foreign Dissemination."
But I think the American people are entitled to
know what the West Germans are doing.
The key portion of the CIA summary report is
titled, "Documented Unauthorized
High-Technology Diversion to the USSR." Between
1966 and mid-1982, the CIA reports, it was able to
identify 261 "probable instances" of high-tech
diversion to the Soviets and 232 "possible
instances." That was from all sources.
Out of the total 493 possible and probable
high-tech leaks, West Germany accounted for 243,
or nearly half. This was almost three times as many
leaks as the next-highest contender, Japan, which
was blamed for 85 during the same period.
"West Germany is the leading target of illegal
technology-transfer activities," the CIA report
states. "Illegal trade and Soviet bloc espionage
operations are the main mechanisms for the
diversion of strategic technology from West
Germany to the [Soviet] bloc."
The CIA suggests that the West German
government has made a mistake by focusing all its
investigative energy on espionage. The CIA reports
indicate that the Soviets obtain the vast majority of
militarily useful items from crooked businessmen
who have little to do with Soviet-bloc spies.
"According to one recent CIA study," the agency
summary reports, "only 28 of some 650 intelligence
reports of probable or possible trade-based
diversion of advanced technology to Eastern
Europe or the Soviet Union over the past 15 years
mentioned any intelligence involvement."
As for the No. 2 leaker, Japan, with its 85
documented diversions of high-tech secrets to the
Soviet Union between 1966 and 1982, one of the
CIA reports states bluntly that the Soviets "view
Japan as an easy collection target."
The report details these items the Soviets have
concentrated on getting from Japan:
microelectronics, machine tools, computers,
telecommunications, automation devices and
specialty steel. The report adds that the technology
that has been transferred (mostly of non-U.S.
origin, if that's any consolation) has enhanced the
Soviets' ground-based weapons and its solid-state
circuitry for missiles and aircraft. -
The roll call of countries that have supplied
secrets to the Kremlin-except for Switzerland,
the historically neutral country which places No.
3-is a roster of friends. In fourth place is our old
ally, France, and in fifth place is Austria.
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~a51-
~-~ 2 7 JAN 1985
i
Jack Anderson
High-Tech Leaks.,
The massive leaks of militarily useful tech-
nologyfrom West Germany to the Soviet bloc will
take years to plug, according to a secret CIA re-
port. The reason is that the West Germans simply
don't' want to shut down the profitable high-tech
traffic.
This is the sobering conclusion of the CIA re-
port, titled',' Transfer of Strategic Technology to
the Soviet Union from West Germany." My as-
sociates'Michael Binstein and Dale Van Atta have
reviewed the highly sensitive report.
The CIA notes that the West Germans have
traditionally paid lip service to the idea of limiting
the.flow of military technology to the Soviet bloc.
But West Germany has opposed putting any teeth
into the repeated attempts to restrict the traffic
as recommended by COCOM, the coordinating
committee set up by the Western allies to control
West-East trade.
"The Kohl government, like previous govern-
ments,.sees expanding trade between West Ger-
many and the Soviet, Union as. essential to its
economy and its balance of foreign trade," the
CIA explains. "West Germany will therefore con-
tinue to interpret COCOM regulations narrowly
in its own? best interests. West Germany is (also)
opposed to trade embargoes for political purposes
and will resist U.S. attempts to exercise extrater-
ritorial control over West German subsidiaries of
U.S. firms.",
The report chides West German licensing au-
thorities and intelligence agencies as "ineffec-
tive in trying to control illegal technology sales
to the , Soviets. They have acted effectively only
when "outside sources" (the CIA, presumably)
have given them evidence of illegalities.
Here are some specific points the report makes
about the West Germans' performance:
s The diversity and efficiency of West Germa-
ny's industries and banks, its excellent transpor-
tation system and its convenient location next
door to Soviet-bloc nations and neutral countries
make it an obvious target for Soviet efforts to ob-
tain Western high-tech items.
^ "Small, entrepreneurial firms in West Ger-
many ... continue to be the main instrument of
Soviet-bloc diversionary efforts.. An industrial:
security-awareness program is needed to sensi-
tize law-abiding West German firms."
^ Soviet military shoppers take full advantage
of West Germany's system of bonded customs
transit zones, where customs agents are forbid-
den to snoop without evidence of probable viola-
tions. "Customs agents should be sensitized to
the need for inspection of suspicious shipments,"
the CIA report says, "in particular those received
from abroad which are reconsigned to a "foreign
destination without being delivered to their origi-
nal West German consignee."
^ The fox is in charge of the chicken coop. Ex-
port controls are a responsibility of the Ministry
of Economics, which wants to encourage. foreign
trade. Not surprisingly, the trade control office
suffers from understaffing and other problems,
the CIA reports.
The report glumly predicted that "it wilf'be'sev-.
eral years before West German enforcement, is sig-
nificantly improved in the area of illegal trade:" :
Sanitized Copy Approved for Release 2011/03/11: CIA-RDP94B0028OR000700010006-5