Subcontracting Reduces Costs – An Example That Doesn’t Involve Blackwater

Via Wired’s Danger Zone blog, a story about subcontracting at the Washington Times (who knew?):

China’s intelligence service gained access to a secret National Security Agency listening post in Hawaii through a Chinese-language translation service, according to U.S. intelligence officials.
The spy penetration was discovered several years ago as part of a major counterintelligence probe by the Naval Criminal Investigative Service (NCIS) that revealed an extensive program by China’s spy service to steal codes and other electronic intelligence secrets, and to recruit military and civilian personnel with access to them.

According to officials who spoke on the condition of anonymity, China’s Ministry of State Security, the main civilian spy service, carried out the operations by setting up a Chinese translation service in Hawaii that represented itself as a U.S.-origin company.

The ruse led to classified contracts with the Navy and NSA to translate some of the hundreds of thousands of intercepted communications gathered by NSA’s network of listening posts, aircraft and ships.

…

Naval intelligence officials familiar with the Chinese spy penetration said the access to both “raw” and analyzed intelligence at Kunia caused significant damage by giving China’s government details on both the targets and the sources of U.S. spying operations. Such information would permit the Chinese to block the eavesdropping or to provide false and misleading “disinformation” to U.S. intelligence.