Does June Cobb Hold the Secrets of JFK’s Assassination?

Did you ever believe the Warren Commission Report? Me neither. Have you ever heard the name June Cobb? Well, if you can find her…what could she reveal about her time in Cuba and Mexico City?

image 9.jpeg [CIA soft file on Cobb].jpg JUNE COBB’S PENETRATION OF CASTRO’S INNER CIRCLE

What Could a Mysterious U.S. Spy Know About the JFK Assassination?

John F. Kennedy buffs are awaiting the release of documents about June Cobb, a little-known CIA operative working in Cuba and Mexico around the time of the president’s assassination.

Politico: She may have been one of the bravest and best-placed American spies in the history of the Cold War, but few people outside the CIA know the mysterious story of June Cobb.

The existing information in the spy agency’s declassified files depicts Cobb as an American Mata Hari—an adventure-loving, death-defying globetrotter who moved to Cuba to work for Fidel Castro, the country’s newly installed strongman, then found herself recruited to spy for the CIA after growing disenchanted with Castro’s revolution. The era’s rampant sexism is obvious in her job evaluation reports: Cobb’s CIA handlers wrote down speculation about her sex life and her failed romance in the 1950s with an opium farmer in the jungles of South America. And the reports are filled with appraisals of Cobb’s looks, noting especially her fetching blue eyes. “Miss Cobb is not unattractive,” her CIA recruiter wrote in 1960. “She is blonde, has a slender figure, although she has a somewhat hard look, making her appear somewhat older than her 33 years.”

According to another, undated evaluation, she had a “wiry” figure but had been attractive enough to catch the Cuban dictator’s eye. Cobb, the report said, was reputedly “a former girlfriend of Castro’s.” True or not, she was close enough to get a job on the Cuban dictator’s senior staff in Havana in 1960, the perfect perch to spy for the CIA. Cobb’s agency work in Havana and later in Mexico leads us to the most puzzling aspect of her life—that she later found herself drawn deeply into the mysteries of John F. Kennedy’s assassination. After the murder, she reported to her CIA bosses that she had identified a trio of witnesses who could tie Kennedy’s assassin, Lee Harvey Oswald, to Cuban diplomats and spies in Mexico City, where Oswald had traveled just weeks before the assassination.

What did June Cobb know at the time? Historians of the Cold War—and anyone with an interest in JFK’s 1963 assassination and the possibility of Cuban involvement—are on the verge of learning much more about the extraordinary, often bizarre, sometimes tragic life of the American spy who was born Viola June Cobb, the full name that appeared on her birth certificate back home in Ponca City, Oklahoma, in 1927. The National Archives has recently acknowledged that it is preparing to release a 221-page file of long-secret CIA documents about Cobb that—for reasons the Archives says it cannot yet divulge—are somehow linked to JFK’s murder.

The Cobb file is among the most tantalizing of an estimated 3,600 assassination-related documents scheduled to be made public by late October under the 25-year deadline established by the JFK Assassination Records Collection Act. Under the 1992 law, the full library of long-secret files will be released automatically by the National Archives later this year unless President Donald Trump blocks their release on national security grounds. The White House has not signaled what Trump, who for years has promoted mostly baseless conspiracy theories, including about JFK’s assassination, will do.

What we know about Cobb so far comes largely from millions of pages of other documents from the CIA, FBI and other federal agencies that were declassified years ago under the 1992 law. Within those documents are dozens of files that identified Cobb as a paid CIA operative when she worked on Castro’s staff in Havana and later when she moved to Mexico. Some of the documents tie her to a lingering questions about Oswald’s trip to Mexico City in late September 1963, not long before Kennedy’s November assassination. In Mexico, Oswald came under CIA surveillance when he met there with both Soviet and Cuban spies. Previously released documents also show Cobb’s involvement in CIA surveillance of a U.S.-based pro-Castro group, the Fair Play for Cuba Committee, which Oswald championed in the months before Kennedy’s murder.

There is one document about Cobb that has remained completely off-limits to the public all these years: the 221-page file identified as “FOLDER ON COBB, VIOLA JUNE (VOL VII)” on a skeletal index released by the Archives last year. It is one of the 3,600 documents that were withheld from public view entirely in the 1990s at the request of the agencies that originally produced them—in Cobb’s case, the CIA. The index prepared by the Archives shows that, as of 1998, when her file was last officially reviewed, the spy agency said the document was “not believed relevant” to the Kennedy assassination but could do unspecified harm if made public before the October 2017 deadline.

But the history of the assassination has needed to be rewritten since the 1990s, in part because of the CIA’s documented duplicity, which raises the question of whether Cobb’s file could in fact be relevant. A 2013 report by the CIA’s in-house historian acknowledged that the agency had conducted a “benign cover-up” in the years immediately after Kennedy’s assassination in an effort to keep investigators focused on “what the Agency believed at the time was the ‘best truth’—that Lee Harvey Oswald, for as yet undetermined motives, had acted alone in killing John Kennedy.” The agency told the Warren Commission—the panel led by Chief Justice Earl Warren that concluded in 1964 that Oswald had acted alone—that there was no evidence of a conspiracy in JFK’s death. The CIA has also admitted that it failed to tell the commission that the agency had attempted throughout Kennedy’s presidency to assassinate Castro and that Castro knew about the plots, which could have given the Cuban an obvious motive to retaliate. Many of the Castro plots involved CIA operatives working out of Mexico City at the time Oswald visited the city in 1963. In the late 1970s, the CIA refused to help investigators for the House Select Committee on Assassinations find Cobb for an interview about what might have happened to Oswald in Mexico, according to the panel’s declassified files.

Gus Russo, a historian and journalist who has written two widely praised books about the assassination, managed to track down Cobb when she living in New York City more than a decade ago and interviewed her about her spying career. “I have always felt that June Cobb was one of the most fascinating characters I came across over decades of looking at this story,” he said in an interview. “She came across as a female James Bond at a time when there were few, if any, female James Bonds.” He added, “I found her to be completely credible and utterly uninterested in notoriety.” Her whereabouts today are a mystery.

A listed phone number for Cobb in Manhattan is disconnected. Messages sent to her email address, the one Russo used years ago, were returned as “undeliverable.” Phone calls to women with her name in her home state of Oklahoma were unreturned. If still alive, she would have turned 90 this year.

During the 1960s, when her prominent work on Castro’s staff in Havana drew the attention of curious journalists, Cobb granted a few interviews in which she explained how she ended up in Cuba. After dropping out of the University of Oklahoma in the late 1940s, she decided to seek excitement far from the flatlands of Oklahoma and moved to Mexico City, to study at a university there. In Mexico, she fell in love with a fellow student, a young Colombian, who enticed her to join him on an adventure in the jungles of Ecuador, where he hoped to open a business growing poppies for opium production—not clearly illegal in Ecuador at the time. She said she went for several months, only to leave him when he grew addicted to his own product. In a 1962 article about Cobb, the muckraking columnist Jack Anderson reported that, according to U.S. government sources, Cobb had other motives for fleeing: Her boyfriend had taken up with other women in Ecuador, and so—“in a fit of jealousy”—Cobb flew back to the United States and “squealed on him” to American narcotics agents.

Whatever really happened in the South American jungle, Cobb found herself working as a journalist in New York as Castro came to power in 1959. She told Anderson that she had gotten swept up in the initial excitement of Castro’s revolution after meeting the Cuban leader when he traveled to New York shortly after taking the reins, before he acknowledged he was a Communist. Within weeks of the meeting, Cobb said, she was invited to Havana to serve as one of Castro’s principal English-language translators—she spoke fluent Spanish—and to handle his contacts with American news organizations. “I suppose you can call me a sucker for lost causes,” she told Anderson.

She was assigned an office only several hundred feet away from Castro’s and, according to CIA reports, saw him face-to-face regularly. Within months, she said, she found herself disenchanted with the revolution, especially as Castro became more vocally anti-American and drew closer to the Soviet Union. “I do doubt that he was a Communist all along,” she later told congressional investigators. “I think that is one of his many falsehoods.”

In 1960, previously declassified CIA records show, she was recruited to begin spying for the United States. In interviews at the time, Cobb tried to deny ties to U.S. intelligence but acknowledged how close she had been to Castro and his key deputies, including his brother Raúl and guerilla leader Che Guevara. CIA files describe Cobb as having had an adventurous love life—she is “promiscuous,” her American handler in Mexico said flatly—but make no final judgment about whether she had a physical relationship with the Cuban leader.

“Her association with Fidel Castro and his entourage has been another shattered ‘dream,’ one of a whole series in her life,” her CIA recruiter wrote at the time, explaining her motives for becoming a spy. “Miss Cobb has undergone much emotional stress in her life and is no longer sure that the revolutionary movement she was so idealistically motivated by a few months ago is the right thing.” Previously declassified CIA document show that Cobb’s information was valuable in preparing the spy agency’s detailed psychological profiles of Castro and his deputies and in monitoring their activities.

A photograph of June Cobb from an August 1962 profile in Parade magazine.

A photograph of June Cobb from an August 1962 profile in Parade magazine. | Parade Magazine

 

By choosing to spy, the records show, Cobb knew she was risking her life, especially after another American prominent in Castro’s government, William Morgan of Toledo, Ohio, who had fought alongside Castro’s army in the revolution, was charged with treason in 1961 by his former Cuban allies and executed by firing squad. “He was a boy with ideals,” Cobb said later of Morgan.

Fearing she faced a similar end, Cobb decided to leave Cuba shortly after Morgan’s arrest and was transferred by the CIA to Mexico City, where she took on assignments monitoring Cuban agents, as well Mexicans who were sympathetic to Castro’s government—work that would eventually draw her into investigations of the Kennedy assassination.

Cobb figures prominently in one of the greatest of the unsolved mysteries about Oswald’s trip to Mexico weeks before the assassination—whether he was in contact there with Cuban or Soviet agents who knew he had spoken openly about killing Kennedy, possibly as an act of retaliation for JFK’s efforts to overthrow Castro’s government. Previously declassified government files suggest that, at one point, Oswald marched into the Cuban embassy compound in Mexico City and announced loudly: “I’m going to kill Kennedy.”

According to other declassified files, Cobb reported to the CIA’s Mexico City station in October 1964, nearly a year after JFK’s assassination, that she had learned from a prominent Mexican writer and two other Mexican sources that they had all seen Oswald at a dance party during his trip the year before that was also attended by Cuban diplomats and others who had spoken openly of their hope that Kennedy would be assassinated. Cobb’s sources said Oswald had been at the party in the company of two other young American men, who appeared to be his traveling companions and whose identifies have never been established. The questions raised by Cobb’s reports were obvious: Had any of those people encouraged Oswald to murder JFK or offered to help him escape after the assassination? (Nothing in the previously released documents involving Cobb support theories that Castro personally ordered Kennedy’s death.)

Cobb speaks with Amazonian natives in Ecuador.

Cobb speaks with Amazonian natives in Ecuador. | Parade Magazine

 

The CIA’s Mexico City station, its files reveal, was determined to dismiss Cobb’s report, perhaps eager to have the official record show that Oswald was a lone wolf whose plans to kill Kennedy could never have been foiled by the spy agency’s officials. Cobb’s key witness, the Mexican novelist and playwright Elena Garro, was interviewed by the FBI, but the CIA disparaged her account, even though other witnesses would come forward to support it. Other leads offered by Cobb were never pursued. And in any case, by the time all of this came out, it was too late for the Warren Commission to act: Two weeks before Cobb’s information landed with her CIA handlers in Mexico, the commission had issued its final report in Washington and shut down its investigation.

Philippines Declares Martial Law, Duterte’s call with Trump Transcripts

Philippines: Martial law declared as Islamic State jihadis storm city and battle national army

In Mindanao. This is a global war, and of the most curious type imaginable: no one in authority wants to admit that it is actually going on, and Western governments generally treat each enemy attack in this war as a separate and discrete criminal incident.

“Philippines soldiers battle Isis-linked gunmen on Marawi city streets,” by Gabriel Samuels, Independent, May 23, 2017:

A group of heavily-armed militants from a group linked to Isis have reportedly stormed a city in the Philippines and engaged in firefights with the national army.

Residents of Marawi City, in the south of the country, were urged to remain indoors as at least 15 gunmen from a Muslim rebel group called Maute stormed the streets brandishing assault rifles.

The group, which is also known as the Islamic State of Lanao, have reportedly received support from Isis.

Troops and a special police force were deployed to the city after residents in a nearby village raised the alarm and appealed for help.

President Rodrigo Duterte then declared martial law and a state of emergency in the province of Mindano [sic]. General Eduardo Ano, the military chief of staff, said at least one police officer was killed and eight soldiers were wounded in the fighting.  More here.

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It was enormously controversial that President Trump placed a friendly call to Philippine strongman Duterte on April 29. Now, we can read what they said. In short, Duterte has been on a killing rampage and frankly has called the United States all kinds of nasty names. Humm…. Then there was the part of the phone call that included North Korea’s nuclear program.

Read all about it with the transcripts here.

*** Image result for duterte meets putin

Duterte Lands in Russia for Visit Cut Short After Martial Law Declaration

Philippines President Rodrigo Duterte has landed in Russia for what was planned as an extensive visit including one-on-one talks with President Vladimir Putin, but the trip has been cut short following a jihadist attack in the Philippine’s south.

Breitbart: Duterte alluded to this trip as the month began, following a personal invitation to the White House, saying he could not confirm travel to America because he is “supposed to go to Russia.”

Duterte arrived in Moscow Monday night for a four-day visit, accompanied by a large Filipino business delegation. While Duterte will seek more Russian business investment in his country, a key objective of his visit will be signing a defense cooperation agreement expected to provide the Philippines with more weapons to use in the ongoing war against drug traffickers that has become a staple of the Duterte presidency.

Duterte had previously claimed Putin had offered him a “buy one, get one free” deal on firearms.

The Philippines is also facing jihadist attacks by Abu Sayyaf, the Islamic State affiliate in the country, which has become increasingly aggressive in the Muslim-majority south of the country, where Duterte is from.

Abu Sayyaf ultimately led to Duterte’s decision to leave Russia early to address the jihadist threat. Duterte declared a 60-day period of martial law in his native Mindanao island and will return home. According to the Philippine Star:

Foreign Affairs Secretary Alan Peter Cayetano said at the same press conference that the president will be cutting his visit to Russia short because his presence is needed in the country.
 The signing of bilateral agreements with Russia will push through but the meetings with Russia President Vladimir Putin and Prime Minister Dmitry Medvedev were postponed. Cayetano said Duterte may just speak with the two leaders via phone.

“The agreement on military technical cooperation will pave the way for the Philippines to explore a possibility of military procurement from Russia,” Foreign Assistant Secretary Maria Cleofe Natividad told reporters before Duterte left to Russia. The agreements would also reportedly create an extradition agreement, which the two countries had not previously had, and allow for “information sharing, training, and technical cooperation,” according to the regional news outlet Rappler.

Officials have also expressed a hope that Duterte’s visit will help end the propagation of negative Russia stereotypes in the country. “There’s been a lot of stereotypes in the Philippines and I don’t really blame it. I mean, growing up watching James Bond movies, the villains were either an evil Russian scientist or some beautiful nubile Russian assassin,” Philippine Ambassador to Russia Carlos Sorreta said on Monday. “The reality is we have not had a deeper exchange with Russia even though we’ve had good relations, so we’re 40 years. And that’s going to change.”

Sorreta hoped the Russian visit would expand the “kind of independent foreign policy [they are] trying to achieve.”

Before his departure, Duterte emphasized the need to expand cooperation with Russia. “Russia must cease to be at the margins of Philippine diplomacy,” he said. “Overdependence on traditional partners has limited our room to maneuver in a very dynamic international arena. This is a strategic oversight that has led to many missed opportunities for our country. I am determined to correct this.”

Duterte has repeatedly stated that he would like to diminish the role of the United States in Philippine foreign relations, at one point declaring, ” You know, if China and Russia would decide to create a new order, I would be the first to join.”

Prior to Duterte, the government of Benigno Aquino kept close ties to the United States and maintained a distance from Russia. The Philippine Star notes that a head of state from that country has not visited Russia since President Gloria Arroyo did in 2009, and prior to that, no visit is on the record since 1997.

Duterte has eagerly expressed his fondness for Putin. “I like Putin. … We have similarities. When it comes to girls,” Duterte said in August 2016, in anticipation of their first meeting. Following that meeting, Duterte gushed that Putin had a “wide laugh” and had reserved a gun as a present for him in Russia. Neither country has confirmed whether Putin will hand over the present during this visit.

Oh, Another Incident of Chinese Industrial Espionage

There is no denying Russia is using cyber warfare against the West. Little is ever mentioned about China’s industrial espionage, something this site attempts to publish as often as possible. Further, the owner of this site participated in two key hearings today in Congress, one with former CIA Director John Brennan and the other included ODNI Dan Coats and DIA Director General Stewart.

Clearly both hearings revealed just how pervasive and common cyber warfare is at the hands of China and Russia. Here is just another example.

China’s theft of IBM’s intellectual property

A former employee of IBM pleaded guilty to theft of source code on behalf of China

Image result for Xu Jiaqiang ibm  And you think the FBI has easy work? Further, we are trusting China to deal with North Korea’s nuclear program and missile systems aimed against Western interests.

CSO: China continues to view the theft of intellectual property as a viable means of technology transfer. Global private sector entities are finding their insiders are being used by China to purloin the proprietary information for use by Chinese state-owned-enterprises or national entities with ever increasing regularity.

On 19 May 2017, Xu Jiaqiang, a PRC national, pleaded guilty to economic espionage and trade secret theft. Xu stole source code from his employer, IBM, and attempted to share it with the National Health and Family Planning Commission in the PRC.  According to the Department of Justice, Xu pleaded guilty to all six of the counts included in his indictment.

A review of Xu’s Linked-In profile shows only his employment with IBM from November 2010 through July 2014 (date is different from that which is contained in the indictment) as a “General Parallel File System Developer at IBM”

Xu was a trusted insider within IBM. According to the DOJ advisory, which contained content from both the criminal complaint and superseding indictment, Xu worked for IBM from 2010-14, with unencumbered access to the “proprietary source code.” DOJ advises, Xu voluntarily resigned from IBM in May 2014.

In late 2014, the Federal Bureau of Investigation (FBI) was informed (source unidentified) that Xu claimed to have access (unauthorized) to the source code and was using the source code in various business ventures. Undercover law enforcement officers subsequently contacted Xu to affirm Xu’s possession of the source code

The criminal complaint describes undercover officers posing as investors engaged in a multi-month email exchanges with Xu which culminated in his sharing portions of the source code as bonafides of his knowledge of “operating systems and parallel file systems.”  At that time, the victim company, IBM, identified the shared code as identical to their proprietary source code.

In late-2015, Xu had a face-to-face meeting with undercover law enforcement officers. At the meeting, Xu noted the code was his former employer’ s(IBM) code. Xu also confirmed to his interlocutors how he had purloined the code prior to his May 2014 employment separation and had made modification so as to obscure the point of origin, IBM.

In June 2016, Xu was indicted and charged with three counts of economic espionage, one count each of theft of trade secrets, possession of trade secrets, and distribution of trade secrets. He will be sentenced in October 2017.

Though IBM has declined comment to media regarding this theft of their intellectual property, reading between the lines, it would appear IBM had deduced (correctly) that Xu absconded with a copy of their GPFS proprietary source code, and was attempting to use it commercially. They then brought the theft to the attention of the FBI.

Illicit technology transfer

China has not slowed down in their acquisition of technology utilizing the access afforded to trusted insiders. The US Director of National Intelligence made it clear in his May 2017 presentation to the Senate Select Committee on Intelligence on the worldwide threat to the United States as to the threat posed by China.

In April 2017, we saw the arrest of a Dutch employee of Siemens, working within the energy arm of Siemens, charged with stealing the intellectual property of his employer and attempting to share it with China.

From the FBI perspective, this was the perfect economic espionage case. Theft of proprietary information for provision to a foreign government. The theft was from a company with an insider threat program in place and who was cooperative (providing technical expertise during the investigation), and of sufficient size to withstand any blow-back from China which may occur.

There is no need to be xenophobic. Multinational companies employee individuals from a great variety of nationalities. The reality is, few employees break trust with their employer.

That said, having your paper trail on agreements which safeguard intellectual property is mandatory. As is a review of all activities of all departing employees for break from pattern, be it a voluntary separation or for cause. If a deeper dive into the employees activities is warranted, make sure to look for any sudden increase in 403 errors – or similar (caused by attempts to access unauthorized data). Verify the complete inventory of all storage devices which the employee may have accessed, and have each returned and or data on the devices destroyed, and review email and uploads for any inappropriate usage.

Remember, though it is the FBI and DOJ success which brought Xu to our collective attention, it was not the FBI who initially discovered Xu’s intellectual property theft. The FBI pursued the lead brought to them by an unidentified third party (presumably IBM).

You are your company’s first line of defense in the protection of intellectual property, not the FBI.

U.S. is Doing ‘That’ Extreme Vetting in Australia

Remember on the campaign trail when President Trump said it was stupid to take the Syria refugees Australia was holding on a remote island that was under agreement by Barack Obama? Remember when there was a discussion between President Trump and the Prime Minister of Australia where apparently Trump hung up the phone, terminating the conversation. The Prime Minister visited the Trump White House and now all is allegedly fine between the two countries.Remember when VP Pence finally agreed to honor the deal and accept those refugees? The reason? The US. is accepting a number of those refugees.

Exclusive: U.S. starts ‘extreme vetting’ at Australia’s offshore detention centers

Reuters: U.S. Homeland Security officials have begun “extreme vetting” interviews at Australia’s offshore detention centers, two sources at the camps told Reuters on Tuesday, as Washington honors a refugee swap that U.S. President Donald Trump had called “a dumb deal”.

The Trump administration said last month the agreement to offer refuge to up to 1,250 asylum seekers in the centers would progress on condition that refugees satisfied strict checks.

In exchange, Australia has pledged to take Central American refugees from a center in Costa Rica, where the United States has expanded intake in recent years, under the deal struck with former President Barack Obama.

Image result for Papua New Guinea's Manus Island detention center DailyMail

The first security interviews finished last week at Papua New Guinea’s Manus Island detention center, two refugees who went through the process told Reuters.

The refugees told Reuters that interviews began with an oath to God to tell the truth and then proceeded for as long as six hours, with in-depth questions on associates, family, friends and any interactions with the Islamic State militant group.

Image result for Papua New Guinea's Manus Island detention center  VOANews

“They asked about why I fled my home, why I sought asylum in Australia,” said one refugee who declined to be named, fearing it could jeopardize his application for U.S. resettlement.

The security interviews are the last stage of U.S. consideration of applicants.

Manus Island is one of two Australian-operated detention centers, which hold nearly 1,300 people who were intercepted trying to reach Australia by boat.

Human rights groups have condemned the intercept policy and the harsh conditions of the camps. Australia says offshore processing is needed as a deterrent after thousands of people drowned at sea before the policy was introduced in 2013.

A decision on the fate of the first 70 people interviewed is expected to be reached within the next month, a different source who works with refugees said.

A spokesman for Australia’s immigration minister refused to comment on the resettlement process.

A U.S. State Department spokeswoman said that refugees from the Australian-run facilities will be subject to the same stringent vetting applied to all refugees who are being considered for entry to the United States.

“The United States remains deeply committed to safeguarding the American public, just as we are committed to providing refuge to some of the world’s most vulnerable people. These goals are not mutually exclusive,” she said.

The White House did not immediately respond to questions.

U.S. President Donald Trump’s plans for extreme vetting have extended to those traveling to the United States from Muslim countries.

Australia’s relationship with the new administration in Washington got off to a rocky start when Trump lambasted Australian Prime Minister Malcolm Turnbull over the resettlement arrangement, which Trump labeled a “dumb deal”.

Details of an acrimonious phone call between the pair soon after Trump took office made headlines around the world. Australia is one of Washington’s staunchest allies and has sent troops to fight alongside the U.S. military in conflicts in Iraq and Afghanistan.

The relocation of asylum seekers to the United States is designed to help Papua New Guinea and Australia proceed with the planned closure of the Manus detention center on Oct. 31.

But the fate of approximately 200 men deemed non-refugees is uncertain.

Those not offered resettlement in the United States will be offered the chance to settle in Papua New Guinea or return home.

Australia has already offered detainees up to $25,000 to voluntarily return home; an offer very few have taken up.

2010: Remember When Obama Pulled U.S. Spies From China

Of course you don’t, one had to be quite the investigator of journalism to know it much less remember it.

So….why you ask? Hold on….there is a pattern and story here.

Image result for u.s. spies in china  Image result for trump with jinping

2010: The White House National Security Council recently directed U.S. spy agencies to lower the priority placed on intelligence collection for China, amid opposition to the policy change from senior intelligence leaders who feared it would hamper efforts to obtain secrets about Beijing’s military and its cyber-attacks.

The downgrading of intelligence gathering on China was challenged by Director of National Intelligence Dennis C. Blair and CIA Director Leon E. Panetta after it was first proposed in interagency memorandums in October, current and former intelligence officials said.

The decision downgrades China from “Priority 1” status, alongside Iran and North Korea, to “Priority 2,” which covers specific events such as the humanitarian crisis after the Haitian earthquake or tensions between India and Pakistan.

The National Security Council staff, in response, pressed ahead with the change and sought to assure Mr. Blair and other intelligence chiefs that the change would not affect the allocation of resources for spying on China or the urgency of focusing on Chinese spying targets, the officials told The Washington Times.

White House National Security Council officials declined to comment on the intelligence issue. Mike Birmingham, a spokesman for Mr. Blair, declined to comment. A CIA spokesman also declined to comment.

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Directors of CIA in that time frame:

Leon Panetta 2010

Mike Morrell (acting) 2011

David Petraeus 2011

Mike Morrell (acting) 2012

John Brennan 2013

Mike Pompeo, current director

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Killing C.I.A. Informants, China Crippled U.S. Spying Operations

NYT/WASHINGTON — The Chinese government systematically dismantled C.I.A. spying operations in the country starting in 2010, killing or imprisoning more than a dozen sources over two years and crippling intelligence gathering there for years afterward.
Current and former American officials described the intelligence breach as one of the worst in decades. It set off a scramble in Washington’s intelligence and law enforcement agencies to contain the fallout, but investigators were bitterly divided over the cause. Some were convinced that a mole within the C.I.A. had betrayed the United States. Others believed that the Chinese had hacked the covert system the C.I.A. used to communicate with its foreign sources. Years later, that debate remains unresolved.
But there was no disagreement about the damage. From the final weeks of 2010 through the end of 2012, according to former American officials, the Chinese killed at least a dozen of the C.I.A.’s sources. According to three of the officials, one was shot in front of his colleagues in the courtyard of a government building — a message to others who might have been working for the C.I.A.
Still others were put in jail. All told, the Chinese killed or imprisoned 18 to 20 of the C.I.A.’s sources in China, according to two former senior American officials, effectively unraveling a network that had taken years to build.
Assessing the fallout from an exposed spy operation can be difficult, but the episode was considered particularly damaging. The number of American assets lost in China, officials said, rivaled those lost in the Soviet Union and Russia during the betrayals of both Aldrich Ames and Robert Hanssen, formerly of the C.I.A. and the F.B.I., who divulged intelligence operations to Moscow for years.
The previously unreported episode shows how successful the Chinese were in disrupting American spying efforts and stealing secrets years before a well-publicized breach in 2015 gave Beijing access to thousands of government personnel records, including intelligence contractors. The C.I.A. considers spying in China one of its top priorities, but the country’s extensive security apparatus makes it exceptionally hard for Western spy services to develop sources there.
At a time when the C.I.A. is trying to figure out how some of its most sensitive documents were leaked onto the internet two months ago by WikiLeaks, and the F.B.I. investigates possible ties between President Trump’s campaign and Russia, the unsettled nature of the China investigation demonstrates the difficulty of conducting counterespionage investigations into sophisticated spy services like those in Russia and China.
The C.I.A. and the F.B.I. both declined to comment.
Details about the investigation have been tightly held. Ten current and former American officials described the investigation on the condition of anonymity because they did not want to be identified discussing the information.
Investigators still disagree how it happened, but the unsettled nature of the China investigation demonstrates the difficulty of conducting counterespionage investigations into sophisticated spy services. Credit Carolyn Kaster/Associated Press..Photo by: Carolyn Kaster/Associated Press..
The first signs of trouble emerged in 2010. At the time, the quality of the C.I.A.’s information about the inner workings of the Chinese government was the best it had been for years, the result of recruiting sources deep inside the bureaucracy in Beijing, four former officials said. Some were Chinese nationals who the C.I.A. believed had become disillusioned with the Chinese government’s corruption.
But by the end of the year, the flow of information began to dry up. By early 2011, senior agency officers realized they had a problem: Assets in China, one of their most precious resources, were disappearing.
The F.B.I. and the C.I.A. opened a joint investigation run by top counterintelligence officials at both agencies. Working out of a secret office in Northern Virginia, they began analyzing every operation being run in Beijing. One former senior American official said the investigation had been code-named Honey Badger.
As more and more sources vanished, the operation took on increased urgency. Nearly every employee at the American Embassy was scrutinized, no matter how high ranking. Some investigators believed the Chinese had cracked the encrypted method that the C.I.A. used to communicate with its assets. Others suspected a traitor in the C.I.A., a theory that agency officials were at first reluctant to embrace — and that some in both agencies still do not believe.
Their debates were punctuated with macabre phone calls — “We lost another one” — and urgent questions from the Obama administration wondering why intelligence about the Chinese had slowed.
The mole hunt eventually zeroed in on a former agency operative who had worked in the C.I.A.’s division overseeing China, believing he was most likely responsible for the crippling disclosures. But efforts to gather enough evidence to arrest him failed, and he is now living in another Asian country, current and former officials said.
There was good reason to suspect an insider, some former officials say. Around that time, Chinese spies compromised National Security Agency surveillance in Taiwan — an island Beijing claims is part of China — by infiltrating Taiwanese intelligence, an American partner, according to two former officials. And the C.I.A. had discovered Chinese operatives in the agency’s hiring pipeline, according to officials and court documents.
But the C.I.A.’s top spy hunter, Mark Kelton, resisted the mole theory, at least initially, former officials say. Mr. Kelton had been close friends with Brian J. Kelley, a C.I.A. officer who in the 1990s was wrongly suspected by the F.B.I. of being a Russian spy. The real traitor, it turned out, was Mr. Hanssen. Mr. Kelton often mentioned Mr. Kelley’s mistreatment in meetings during the China episode, former colleagues say, and said he would not accuse someone without ironclad evidence.
Those who rejected the mole theory attributed the losses to sloppy American tradecraft at a time when the Chinese were becoming better at monitoring American espionage activities in the country. Some F.B.I. agents became convinced that C.I.A. handlers in Beijing too often traveled the same routes to the same meeting points, which would have helped China’s vast surveillance network identify the spies in its midst.
Some officers met their sources at a restaurant where Chinese agents had planted listening devices, former officials said, and even the waiters worked for Chinese intelligence.
This carelessness, coupled with the possibility that the Chinese had hacked the covert communications channel, would explain many, if not all, of the disappearances and deaths, some former officials said. Some in the agency, particularly those who had helped build the spy network, resisted this theory and believed they had been caught in the middle of a turf war within the C.I.A.
Still, the Chinese picked off more and more of the agency’s spies, continuing through 2011 and into 2012. As investigators narrowed the list of suspects with access to the information, they started focusing on a Chinese-American who had left the C.I.A. shortly before the intelligence losses began. Some investigators believed he had become disgruntled and had begun spying for China. One official said the man had access to the identities of C.I.A. informants and fit all the indicators on a matrix used to identify espionage threats.
After leaving the C.I.A., the man decided to remain in Asia with his family and pursue a business opportunity, which some officials suspect that Chinese intelligence agents had arranged.
Officials said the F.B.I. and the C.I.A. lured the man back to the United States around 2012 with a ruse about a possible contract with the agency, an arrangement common among former officers. Agents questioned the man, asking why he had decided to stay in Asia, concerned that he possessed a number of secrets that would be valuable to the Chinese. It’s not clear whether agents confronted the man about whether he had spied for China.
The man defended his reasons for living in Asia and did not admit any wrongdoing, an official said. He then returned to Asia.
By 2013, the F.B.I. and the C.I.A. concluded that China’s success in identifying C.I.A. agents had been blunted — it is not clear how — but the damage had been done.
The C.I.A. has tried to rebuild its network of spies in China, officials said, an expensive and time-consuming effort led at one time by the former chief of the East Asia Division. A former intelligence official said the former chief was particularly bitter because he had worked with the suspected mole and recruited some of the spies in China who were ultimately executed.
China has been particularly aggressive in its espionage in recent years, beyond the breach of the Office of Personnel Management records in 2015, American officials said. Last year, an F.B.I. employee pleaded guilty to acting as a Chinese agent for years, passing sensitive technology information to Beijing in exchange for cash, lavish hotel rooms during foreign travel and prostitutes.
In March, prosecutors announced the arrest of a longtime State Department employee, Candace Marie Claiborne, accused of lying to investigators about her contacts with Chinese officials. According to the criminal complaint against Ms. Claiborne, who pleaded not guilty, Chinese agents wired cash into her bank account and showered her with gifts that included an iPhone, a laptop and tuition at a Chinese fashion school. In addition, according to the complaint, she received a fully furnished apartment and a stipend.
*** Just to be sure China had a real handle on all CIA operatives in country, what came next? The OPM hack, remember that one?
Enter China’s Unit 61398
The program used by China:

In part from Wired: The US-CERT team moved into OPM’s sub-basement and among the first moves was to analyze the malware that Saulsbury had found attached to mcutil.dll. The program turned out to be one they knew well: a variant of PlugX, a remote-access tool commonly deployed by Chinese-­speaking hacking units. The tool has also shown up on computers used by foes of China’s government, including activists in Hong Kong and Tibet. The malware’s code is always slightly tweaked between attacks so firewalls can’t recognize it.

By Tuesday the 21st, having churned through a string of nearly sleepless days and nights, the investigators felt satisfied that they’d done their due diligence. Their scans had identified over 2,000 individual pieces of malware that were unrelated to the attack in question (everything from routine adware to dormant viruses). The PlugX variant they were seeking to annihilate was present on fewer than 10 OPM machines; unfortunately, some of those machines were pivotal to the entire network. “The big one was what we call the jumpbox,” Mejeur says. “That’s the administrative server that’s used to log in to all the other servers. And it’s got malware on it. That is an ‘Oh feces’ moment.”

By controlling the jumpbox, the attackers had gained access to every nook and cranny of OPM’s digital terrain. The investigators wondered whether the APT had pulled off that impressive feat with the aid of the system blueprints stolen in the breach discovered in March 2014. If that were the case, then the hackers had devoted months to laying the groundwork for this attack.

Leaping forward in details:

Once established on the agency’s network, they used trial and error to find the credentials necessary to seed the jumpbox with their PlugX variant. Then, during the long Fourth of July weekend in 2014, when staffing was sure to be light, the hackers began to run a series of commands meant to prepare data for exfiltration. Bundles of records were copied, moved onto drives from which they could be snatched, and chopped up into .zip or .rar files to avoid causing suspicious traffic spikes. The records that the attackers targeted were some of the most sensitive imaginable.

The hackers had first pillaged a massive trove of background-check data. As part of its human resources mission, OPM processes over 2 million background investigations per year, involving everyone from contractors to federal judges. OPM’s digital archives contain roughly 18 million copies of Standard Form 86, a 127-page questionnaire for federal security clearance that includes probing questions about an applicant’s personal finances, past substance abuse, and psychiatric care. The agency also warehouses the data that is gathered on applicants for some of the government’s most secretive jobs. That data can include everything from lie detector results to notes about whether an applicant engages in risky sexual behavior.

The hackers next delved into the complete personnel files of 4.2 million employees, past and present. Then, just weeks before OPM booted them out, they grabbed approximately 5.6 million digital images of government employee fingerprints.

Then comes, a little too late and thin on substance in February 2015:

President Obama Speaks at the White House Summit on Cybersecurity and Consumer Protection

Is all this fix yet? Hah…not even close. Then we need to ask why are we trusting China with North Korea’s nuclear weapons and missile program? Do we have spies in Iran? North Korea? Any new operatives in China?

Scary eh?