*** Mid April 2002 Newsletter
"An eye for an eye only makes for a blind world."
- Mahatma Gandhi
*** New Zealand Snooping laws come with unknown cost
By PETER GRIFFIN New laws allowing police and security services to snoop on emails may prove expensive for a long list of telecommunications companies, Internet service providers and even Canterbury University.
But how much complying with the new requirements will cost is anyone's guess.
The Telecommunications (Interception Capability) Bill, which is now being drafted, gives existing operators five years to make their data networks capable of interception by the police and state agencies such as the Security Intelligence Service and the Government Communications Security Bureau.
New operators, such as fledgling mobile network operator Econet Wireless, would have 18 months and would also have to cover the cost themselves, said Communications Minister Paul Swain.
While Cabinet policy committee documents obtained by the Herald put the total cost to the industry at NZ$12 million, most Internet providers and telcos have yet to do the sums themselves. The legislation accounts for existing telecoms voice networks to be upgraded, with the Government paying $3 million to make them interception-capable. The bulk of that money has been spent on the networks of Telecom and Vodafone.
TelstraClear's head of network operations, Neil Cryer, said the company had not calculated the cost of making its data network interception-capable.
Nick Wood, director of ihug, said interception requests were at present dealt with on a case-by-case basis, usually at minimal cost.
"It's just the time of the ihug guy who is getting the information for them. We don't charge for that."
Neil De Wit, managing director of fibre network operator CityLink, had no idea how much the process would cost.
Citylink had not yet received any interception requests and he believed Internet service providers (ISPs) rather than network infrastructure providers would be most affected.
"It's easier to capture the information at either end of the network rather than on the network itself."
Telecom, which manages the infrastructure for the country's largest ISP, Xtra, was undertaking a major upgrade to an IP (Internet protocol) based network which could drive up the cost of making the network interception-capable, said spokesman Andrew Bristol.
He said Telecom could give no guarantees that the cost of meeting its interception obligations under the new law would not be passed on to consumers.
The Cabinet policy committee documents point out that any interception of data would still require an interception warrant to be issued by the High Court. A Government source said most requests for such warrants were now "turned down." However in the real world getting one is becoming more like America; Simply a wink of the eye to a "friendly" judge and (Nzed) authorities get whatever they want, when they want it.
Just what is involved in making the various networks interception-capable has not been revealed, but the documents say "the bill does not require all Internet service providers to 'install a black box linked to the security service' which will monitor all Internet traffic".
This has been the scenario painted by concerned privacy advocates overseas.
But a security expert who did not want to be named said the legislation would, in theory, allow the introduction of systems like "Carnivore" - an Internet monitoring device used by the FBI.
Carnivore does not "sniff" Internet traffic indiscriminately but "decodes" the traffic looking for addresses it is programmed to search out. The FBI says it is used only if an ISP cannot satisfy a warrant.
It says the boxes are rarely placed on ISP backbones, but usually close to the servers they are designed to monitor and usually for no longer than a month at a time.
The security expert said most of the cost of making the networks interception-capable would involve putting systems in place to allow access to servers and network infrastructure quickly, and training ISP staff.
Shamrock's Comment:
There are several observations we'd like to address in this month's lead article above. First, it's from New Zealand. Shamrock's fasting growing new subscribers are from Australia, followed by the US, then New Zealand, though the US remains the single largest base of our subscribers. This tells us something! People around the world are becoming increasingly concerned and worried about their lost of privacy, particularly in Australia and New Zealand!
More important Amerika's privacy stealing policies are rapidity taking hold in other parts of the Western world. As we have said for many years, what happens first in Amerika is soon followed in the rest of the (western) world.
Another interesting phenomena is that terrocrats around the world are using, with great success as the above article points out, private businesses to pay for big brothers spying and, under penalty, having these same businesses do the spying for the crew cuts!
In today's world, and nearly anywhere Amerika and the west has influence, one is subject to; * having a SAR (suspicious activity report) filed on them; * an investigation started for any (unknown) reason; * suffering the consequences by paying for anything with cash * being profiled because you didn't *fit* in; * targeted; singled out and questioned, for the slightest difference in what the government says is "out of the ordinary".
For instance; depositing cash, even a few hundred dollars, pounds or Euro's, if you haven't done this previously can land you in hot water; paying cash for your airline ticket, purchasing consumer products, i.e. a washing machine! (absolutely ridiculous); purchasing a ferry crossing ticket at the last minute. Even traveling on a European passport showing you were born in America, subjects you to a grilling by government proctologist's in European nations. Heaven forbid what would happen to you in Amerika if you were unfortunate enough to have been born in Amerika to foreign parents!
I realize that the above sounds ludicrous and in fact, down right funny. However all of the above were sent to us from subscribers regarding their personal 'encounters' with the terrocrats.
One subscriber wrote that his mother was dying and he had to purchase a rush airline ticket at the airport to fly across the US to see his mother before she died. His credit card was maxed out, so he had to pay cash for it. He was stopped by the authorities as he boarded his flight, grilled for three hours, and had US$1,000 in cash confiscated, never to be returned. He missed his flight and had to take a flight the next morning. His mother passed away early that morning whilst he was on the delayed flight traveling to be with her!
Another wrote that for unknown reasons, he was singled out and targeted for three years of IRS brutally! After years of exhausting audits, a criminal investigation and suffering a heart attack from the stress, he came out clean as a hounds tooth and didn't owe an extra penny in income tax, nor were charges brought against him. After years of obtaining FOIA (Freedom of Information Act) documents, court appearances and orders trying to discover the culprit behind this abuse, neither he nor his attorney could come up with anything concrete as to who or why all these problems started. He never received so much as an apology from the IRS.
Not all bad experiences happen in Amerika! But being born in Amerika can put you at RISK!
Yet another unfortunate soul told of a recent travel *experience*. Whilst returning home to Germany from eastern Europe, (not one of the former communists countries, but a major tourist destination,) he was stopped at pre-check-in and questioned by a minimum wage 'security' girl (in her early twenties) with the usual questions, i.e. Did you pack your own bag? Has anyone given you anything? Has your bag been with you all the time?, etc. He was traveling with his partner and their children. This traveler was born in America, but his parents were German. He was raised and went to school in the US, but returned along with his parents, to Germany before he was 16. He speaks, reads and writes fluent English, German (in three dialects), Dutch and French.
The security person saw in his passport that he was born in America and asked if he had an America passport? "Certainly not!" Why would anyone want an American passport?" was his reply. The girl went on to say that *everyone* born in America would want an American passport, so why didn't he? He was very polite and not at all abusive. He tried to explain that most EU nationals born in a foreign country have until their 18th birthday to decide which nationality they prefer; at least that was the law at the time prior to his 18th birthday. (The laws have since changed.) Since at the time of his 18th birthday he was living in Germany with his parents and planned on going to university and working in Germany, it was an easy decision for him to make; stay German, and relinquish his American citizenship.
At this point, the girl (who had all their passports in hand,) pulled the family aside and told them to wait. And wait they did ... for three hours. Finally a supervisor came out and said that everything was in order and that was that. They missed their flight. Since their original flight was the last scheduled flight that day (to their city in Germany,) they were re-booked on the next flight out, i.e. the next day.
No compensation for a hotel room required for five persons that night was provided; no transportation vouchers offered; nor even a $5 food voucher for missing their flight given. Not so much as a polite apology!
An Australian tourist upon arrival in Auckland, New Zealand went to rent an automobile from one of the well known American brand rental companies. When asked for a credit card, he said he'd leave a cash deposit for the automobile, a few thousand NZ$. Airport authorities were called, and the tourist was given a good going over, in spite of having previously cleared both immigration and customs and declaring everything.
He eventually rented an automobile from a local, albeit smaller, New Zealand automobile rental company who gladly accepted his cash without question or concern!
Nothing takes the cake better than your friendly Terrocrats and the terror they place on businesses to do their dirty work for them ... against YOU!
As if all of the above were not bad enough, nothing beats your friendly banker working hard for big brother.
About three years ago, a then recently divorced man, of whom his credit was ruined thanks to another nasty divorce (50% of all American marriages end in divorce-of which 95% are of a nasty nature,) rented a new, albeit small 3-bedroom house so his children could visit him when it was his turn for visitation.
The man required a washer and dryer, TV and miscellaneous items, e.g. a toaster, microwave, iron and ironing board, plus all the normal dishes, plates, pots and pans, etc. All toll everything would come to approximately US$1,500.oo. Not having a check guarantee card nor any credit cards, he withdrew US$1,500 cash from his bank where he had been a valued customer for 14-years.
He went to the store (one of the major name appliance stores in the US) picked out everything he required, and went to the check-out stand. The clerk totaled everything up and it came to US$1,291.37 including sales tax. He proceeded to take out 13 brand new Ben Franklin's, (US$100 bills) to pay for his purchases. The check-out clerk was polite and said that he couldn't accept cash due to *new* store policy. The supervisor was brought over, and the customer proceeded with his tale of woe of divorce, no credit or check guarantee cards, etc.
The supervisor was very sympathetic to the customers problem, but "policies are policies" and the store couldn't accept the cash. A long discussion followed about money laundering, etc.
To make a long story short, the supervisor told the customer that they would accept his personal check, but that the store would have to wait three to five working days for the check to clear before they could place an order for delivery. The customer thanked him for the offer but said this was not acceptable because his children were coming to stay in a few days and he required the products prior to that time. The customer asked if he exchanged the cash for a cashiers check at his bank, would that do? The supervisor agreed.
So the customer returned to his bank, deposited the US$1500 in cash and had a US$1,291.37 cashiers check made payable to the store. He proceeded back to the store, purchased the items and the supervisor had the goods delivered the next day, in time for his children's visitation. The store made a very happy customer out of our subscriber.
End of story? - No way!
About a year later the doo doo hit the fan. His house was raided, he was audited by the IRS for the previous five years, his computers at home and at his office were 'confiscated' and all papers and records hauled away by the IRS in a 40-foot long moving van. "They didn't just take the papers. They placed the filing cabinets on dollies (roll away carts) and hauled everything away!" said the unhappy camper.
After 18 months of ongoing investigations, grief, stress and his computers and papers still not returned leaving him in financial turmoil; the only inkling of what caused this debacle was an off the cuff remark made to him during an interview in front of his attorney by one of the CID (Criminal Investigation Division) IRS agents. When pressed as to what caused this catastrophe, the agent replied; "You shouldn't have deposited cash in your bank account!"
Any reasonable, logical and rational person could/should have seen the cashiers cheque and had they listened to the truthful explanation, could have avoided this debacle by clearly seeing what really happened.
It gets worse!
We had dinner with a high ranking officer from one of Switzerland's leading private banks the other evening, and was shocked to learn what is being forced upon all banks, including Switzerland's. These are newly implemented (US) banking policies and procedures, transacted with *ALL* Americans and American residents. This off the record first hand account really caused us consideration consternation. We were given permission to pass this information along to our subscribers subject to guaranteeing anonymity to our high level bank officer source.
(His) Swiss banks are now NOT allowed to call or accept calls from ANY American citizen or resident to or from the United States. Mail is not sent to anyone in the US, nor should mail be sent to the Swiss bank from the US as well. Any transactions in USD, US stocks, US Bonds, and or anything related to or going through the United States, or any American company, i.e. FEDERAL EXPRESS, UPS, ETC. Master Card, Visa and AMERICAN EXPRESS, is now required to be reported by law to the American Authorities by those American sources or *ANY* party affiliated with them.
***Note*** DHL is non-American owned and should be used as your courier of choice provided the envelope is not sent to or from the US.
When asked if this was unique to Switzerland the reply was even more remarkable. I paraphrase here; "Switzerland is complying, but only in the barest sense, at least at our bank" (which does not have an office in the US).
He continued; "In other jurisdictions it is far more severe. In fact it is my understanding from colleagues that in some of the more high profile locales, especially Central America and the Caribbean areas, US government employee's or agents of the US government, have been *planted* and alleged to be working in some major offshore banks and even trust companies, either known or unknown, with or without the permission or knowledge of the owners and board of directors of the financial intuitions."
He continued; "It is even probable that the (US) authorities are using sophisticated technology to (illegally?) tap into our systems, at least those that pass through the US! It is imperative that one *NEVER* use their real name when contacting us (or any offshore bank) by telephone or facsimile. A pre-agreed upon code name to identify yourself to the banker is an absolutely necessity today! A code name like *General Yamamoto* would be a good example!"
This comes from a personal friend, a man we've known for two decades; one of the most honorable, trusted persons I've known in my life! The consequences of his statements will have grave repercussions for all Americans and American residents.
And least the rest of us non-Yank's forget - What happens in Amerika first, is soon to follow elsewhere!
Like the New Zealand article above states; "Snooping laws come with unknown cost". The cost is high for all of us.
Closing Thoughts!
PT Shamrock is but a tiny speck of dust in the universe, a mere drop in the ocean. Yet reflect on this if you will; If you were to multiple the above injustices we received from a few disgruntled persons whom felt the strong and long arm of Amerika's arcane laws, multiply it ten fold, a thousand times, a million times of this happening around the world; the cost is not only high in financial terms, but in terms of many angry persons spread around the world.
Now extend the *cost* due to America's foreign policies and it gets far worse. No wonder Palestinians and the Israeli's hate each other. It will be generations, if ever, before true peace is reached in the region. A great deal of the fault lays clearly at America's doorstep and its biased policy in favour of Israel for 50-years. A more even handed policy may have prevented 16-year old Palestinian girls from killing themselves and 26 Israeli's by blowing them up, thus provoking Israeli's invading Palestine and massacring hundreds of Palestinians in a seemingly endless wave of terror to and from both sides.
Amerika's laws and policies do indeed come with unknown costs! = = = = = = = = = = = = = = = = = = = = = = = = = = = =
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