U.S. used intelligence to win major RI contract

U.S. used intelligence to win major RI contract

SYDNEY (AFP): The United States may have used intelligence
gathered at an Australian spy base to win a major Indonesian
trade contract at Japan's expense several years ago, a former
American spy said Sunday.

Either Shoal Bay near Darwin or the U.S.-based Yakima facility
intercepted Indonesian government communications which aided
Washington, according to former National Security Agency (NSA)
staffer Wayne Madsen.

He suggested the U.S. use of economic intelligence gathered in
Australia could be used to undercut bids by Canberra for trade
contracts.

The intercepts revealed that Indonesia was going to award the
unspecified contract to the Japanese company NEC, he told the
Nine television network said.

"The U.S. company ATT was also bidding on that same contract,"
Madsen said.

"This prompted President (George) Bush to contact General
Soeharto and Bush kind of mildly reminded the old general about
the support the U.S. had given Indonesia over the years,
militarily, economic, support for East Timor.

"And I think Soeharto got the message because eventually it
was announced that Indonesia was going to split the award 50/50."

Bush served as U.S. president from 1989 to 1993.

Australian Inspector-General of Intelligence and Security Bill
Blick said he had never had cause to fear the Australians had not
been told the full story about an intelligence operation.

"I am convinced we can trust them," he said.

But Madsen said Australia was being naive if it thought
economic intelligence being gathered through Echelon -- an
alliance of the U.S., Britain, Canada, Australia and New Zealand
-- on Australian soil was not being used to help American
companies.