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Fox News Script

This partial transcript of Special Report with Brit Hume, Dec. 11, was provided by the Federal Document Clearing House. Click here to order the complete transcript.


Part 1 of 4

BRIT HUME, HOST: It has been more than 16 years since a civilian working for the Navy was charged with passing secrets to Israel. Jonathan Pollard pled guilty to conspiracy to commit espionage and is serving a life sentence. At first, Israeli leaders claimed Pollard was part of a rogue operation, but later took responsibility for his work.

Now Fox News has learned some U.S. investigators believe that there are Israelis again very much engaged in spying in and on the U.S., who may have known things they didn't tell us before Sept. 11. Fox News correspondent Carl Cameron has details in the first of a four-part series.

(BEGIN VIDEOTAPE)

CARL CAMERON, FOX NEWS CORRESPONDENT: Since Sept. 11, more than 60 Israelis have been arrested or detained, either under the new patriot anti-terrorism law, or for immigration violations. A handful of active Israeli military were among those detained, according to investigators, who say some of the detainees also failed polygraph questions when asked about alleged surveillance activities against and in the United States.

There is no indication that the Israelis were involved in the 9/11 attacks, but investigators suspect that they Israelis may have gathered intelligence about the attacks in advance, and not shared it. A highly placed investigator said there are "tie-ins." But when asked for details, he flatly refused to describe them, saying, "evidence linking these Israelis to 9/11 is classified. I cannot tell you about evidence that has been gathered. It's classified information."

Fox News has learned that one group of Israelis, spotted in North Carolina recently, is suspected of keeping an apartment in California to spy on a group of Arabs who the United States is also investigating for links to terrorism. Numerous classified documents obtained by Fox News indicate that even prior to Sept. 11, as many as 140 other Israelis had been detained or arrested in a secretive and sprawling investigation into suspected espionage by Israelis in the United States.

Investigators from numerous government agencies are part of a working group that's been compiling evidence since the mid '90s. These documents detail hundreds of incidents in cities and towns across the country that investigators say, "may well be an organized intelligence gathering activity."

The first part of the investigation focuses on Israelis who say they are art students from the University of Jerusalem and Bazala Academy. They repeatedly made contact with U.S. government personnel, the report says, by saying they wanted to sell cheap art or handiwork.

Documents say they, "targeted and penetrated military bases." The DEA, FBI and dozens of government facilities, and even secret offices and unlisted private homes of law enforcement and intelligence personnel. The majority of those questioned, "stated they served in military intelligence, electronic surveillance intercept and or explosive ordinance units."

Another part of the investigation has resulted in the detention and arrests of dozens of Israelis at American mall kiosks, where they've been selling toys called Puzzle Car and Zoom Copter. Investigators suspect a front.

Shortly after The New York Times and Washington Post reported the Israeli detentions last months, the carts began vanishing. Zoom Copter's Web page says, "We are aware of the situation caused by thousands of mall carts being closed at the last minute. This in no way reflects the quality of the toy or its salability. The problem lies in the operators' business policies."

Why would Israelis spy in and on the U.S.? A general accounting office investigation referred to Israel as country A and said, "According to a U.S. intelligence agency, the government of country A conducts the most aggressive espionage operations against the U.S. of any U.S. ally."

A defense intelligence report said Israel has a voracious appetite for information and said, "the Israelis are motivated by strong survival instincts which dictate every possible facet of their political and economical policies. It aggressively collects military and industrial technology and the U.S. is a high priority target."

The document concludes: "Israel possesses the resources and technical capability to achieve its collection objectives."

(END VIDEO CLIP)

A spokesman for the Israeli embassy here in Washington issued a denial saying that any suggestion that Israelis are spying in or on the U.S. is "simply not true." There are other things to consider. And in the days ahead, we'll take a look at the U.S. phone system and law enforcement's methods for wiretaps. And an investigation that both have been compromised by our friends overseas.

HUME: Carl, what about this question of advanced knowledge of what was going to happen on 9/11? How clear are investigators that some Israeli agents may have known something?

CAMERON: It's very explosive information, obviously, and there's a great deal of evidence that they say they have collected — none of it necessarily conclusive. It's more when they put it all together. A bigger question, they say, is how could they not have know? Almost a direct quote.

HUME: Going into the fact that they were spying on some Arabs, right?

CAMERON: Correct.

HUME: All right, Carl, thanks very much.


This partial transcript of Special Report with Brit Hume, Dec. 12, was provided by the Federal Document Clearing House. Click here to order the complete transcript.


Part 2 of 4

BRIT HUME, HOST: Last time we reported on the approximately 60 Israelis who had been detained in connection with the Sept. 11 terrorism investigation. Carl Cameron reported that U.S. investigators suspect that some of these Israelis were spying on Arabs in this country, and may have turned up information on the planned terrorist attacks back in September that was not passed on.

Tonight, in the second of four reports on spying by Israelis in the U.S., we learn about an Israeli-based private communications company, for whom a half-dozen of those 60 detained suspects worked. American investigators fear information generated by this firm may have fallen into the wrong hands and had the effect of impeded the Sept. 11 terror inquiry. Here's Carl Cameron's second report.

(BEGIN VIDEOTAPE)

CARL CAMERON, FOX NEWS CORRESPONDENT (voice-over): Fox News has learned that some American terrorist investigators fear certain suspects in the Sept. 11 attacks may have managed to stay ahead of them, by knowing who and when investigators are calling on the telephone. How?

By obtaining and analyzing data that's generated every time someone in the U.S. makes a call.

UNIDENTIFIED FEMALE: What city and state, please?

CAMERON: Here's how the system works. Most directory assistance calls, and virtually all call records and billing in the U.S. are done for the phone companies by Amdocs Ltd., an Israeli-based private elecommunications company.

Amdocs has contracts with the 25 biggest phone companies in America, and more worldwide. The White House and other secure government phone lines are protected, but it is virtually impossible to make a call on normal phones without generating an Amdocs record of it.

In recent years, the FBI and other government agencies have investigated Amdocs more than once. The firm has repeatedly and adamantly denied any security breaches or wrongdoing. But sources tell Fox News that in 1999, the super secret national security agency, headquartered in northern Maryland, issued what's called a Top Secret sensitive compartmentalized information report, TS/SCI, warning that records of calls in the United States were getting into foreign hands – in Israel, in particular.

Investigators don't believe calls are being listened to, but the data about who is calling whom and when is plenty valuable in itself. An internal Amdocs memo to senior company executives suggests just how Amdocs generated call records could be used. “Widespread data mining techniques and algorithms.... combining both the properties of the customer (e.g., credit rating) and properties of the specific ‘behavior….’” Specific behavior, such as who the customers are calling.

The Amdocs memo says the system should be used to prevent phone fraud. But U.S. counterintelligence analysts say it could also be used to spy through the phone system. Fox News has learned that the N.S.A has held numerous classified conferences to warn the F.B.I. and C.I.A. how Amdocs records could be used. At one NSA briefing, a diagram by the Argon national lab was used to show that if the phone records are not secure, major security breaches are possible.

Another briefing document said, "It has become increasingly apparent that systems and networks are vulnerable.…Such crimes always involve unauthorized persons, or persons who exceed their authorization...citing on exploitable vulnerabilities."

Those vulnerabilities are growing, because according to another briefing, the U.S. relies too much on foreign companies like Amdocs for high-tech equipment and software. "Many factors have led to increased dependence on code developed overseas.... We buy rather than train or develop solutions."

U.S. intelligence does not believe the Israeli government is involved in a misuse of information, and Amdocs insists that its data is secure. What U.S. government officials are worried about, however, is the possibility that Amdocs data could get into the wrong hands, particularly organized crime. And that would not be the first thing that such a thing has happened. Fox News has documents of a 1997 drug trafficking case in Los Angeles, in which telephone information, the type that Amdocs collects, was used to "completely compromise the communications of the FBI, the Secret Service, the DEO and the LAPD."

We'll have that and a lot more in the days ahead – Brit.

HUME: Carl, I want to take you back to your report last night on those 60 Israelis who were detained in the anti-terror investigation, and the suspicion that some investigators have that they may have picked up information on the 9/11 attacks ahead of time and not passed it on.

There was a report, you'll recall, that the Mossad, the Israeli intelligence agency, did indeed send representatives to the U.S. to warn, just before 9/11, that a major terrorist attack was imminent. How does that leave room for the lack of a warning?

CAMERON: I remember the report, Brit. We did it first internationally right here on your show on the 14th. What investigators are saying is that that warning from the Mossad was nonspecific and general, and they believe that it may have had something to do with the desire to protect what are called sources and methods in the intelligence community. The suspicion being, perhaps those sources and methods were taking place right here in the United States.

The question came up in select intelligence committee on Capitol Hill today. They intend to look into what we reported last night, and specifically that possibility – Brit.

HUME: So in other words, the problem wasn't lack of a warning, the problem was lack of useful details?

CAMERON: Quantity of information.

HUME: All right, Carl, thank you very much.