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.