Feb. 28, 2010

Caught on Tape: Selling America's Secrets

Rare Video Obtained by "60 Minutes" Shows Pentagon Employee Selling Secrets to Chinese Spy

  • Play CBS Video Video Stealing America's Secrets

    60 Minutes has obtained an FBI videotape showing a Defense Department employee selling secrets to a Chinese spy that offers a rare glimpse into the secretive world of espionage. Scott Pelley reports.

  • Video Extra: Cyber Spies

    Former FBI Deputy Assistant Director John Slattery says computer hacking is only one front in the war against cyber spies.

  • Video Extra: Sloppy Spying

    Former FBI agent John Slattery is rather unimpressed with the spycraft shown by the Chinese in the Bergersen case.

  •  (CBS)

(CBS)  The Chinese have stolen technology used in the Space Shuttle and in submarine propulsion systems. And in the late 1990s, a Congressional commission, known as the Cox Commission, found China now holds the most closely guarded secrets America had.

"We learned, and the Cox Commission reported, that the Chinese had acquired the design information for all U.S. thermonuclear weapons currently in our inventory," Van Cleave explained.

According to Van Cleave, the Chinese possess today the designs of all of America's nuclear weapons.

How did they get that?

"The questions of how they acquired it remain to some extent unknown," she replied.

How the U.S. lost its atomic secrets may be unknown but there are fewer mysteries in the case of Tai Shen Kuo and Gregg Bergersen. The FBI says that Kuo wanted to expand his Louisiana business into China. When he sought permission from Beijing, the Chinese asked for a few favors for their intelligence service.

The $2,000 was only part of Kuo's development of Bergersen. Kuo wined and dined his spy and Bergersen seemed to have an appetite for espionage.

At one dinner in Alexandria, Va., Kuo's tab came to $710. Kuo took Bergersen to Las Vegas for some shows. And the day of the ride that was caught on tape, Kuo brought a box of expensive Cuban cigars.

All the while, Kuo lied to Bergersen by telling him the information was being passed to Taiwan, the U.S. ally. That's a technique known in intelligence circles as "false-flagging."

"Does that make any difference in the law, whether you're spying for a hostile government or a friendly one?" Pelley asked John Slattery.

"Of course not," he replied. "Classified information's not allowed to be passed without, you know, certain approvals, to any foreign government."

"But I think when you see the information you can get out of it what you need," Bergersen told Kuo in the undercover tape. "You know, you can write all the, you can take all the notes you want."

"It's just, I cannot?ever let anyone know??because?that's my job," he said.

"I'd get fired for sure on that. Well, not even get fired, I'd go to *** jail," Bergersen added.

Continued



Produced by Henry Schuster
? MMX, CBS Interactive Inc. All Rights Reserved.
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Add a Comment See all 91 Comments
by rocketjl March 4, 2010 11:52 AM EST
When American stopped executing people for treason, things really went down hill. Put them in jail and feed them for a long time. Let them go and they do it again. Shoot traitors and terrorists.
Reply to this comment
by Funky-President March 3, 2010 3:27 PM EST
Who stole our anthrax sercrets? where is the [silicon] "enhanced" Antharx? It was in you mail!

PUBLISHED SEPT 4, 2001.

nytimes.com/2001/09/04/international/04GERM.html ?pagewanted=all

Earlier this year, administration officials said, the Pentagon drew up plans to engineer genetically a potentially more potent variant of the bacterium that causes anthrax, a deadly disease ideal for germ warfare."

"A published account of the experiment, which appeared in a scientific journal in late 1997, alarmed the Pentagon, which had just decided to require that American soldiers be vaccinated against anthrax. American officials tried to obtain a sample from Russia through a scientific exchange program to see whether the Russians had really created such a hybrid. The Americans also wanted to test whether the microbe could defeat the American vaccine, which is different from that used by Russia.

Despite repeated promises, the bacteria were never provided.

Eventually the C.I.A. drew up plans to replicate the strain, but intelligence officials said the agency hesitated because there was no specific report that an adversary was attempting to turn the superbug into a weapon.

This year, officials said, the project was taken over by the Pentagon's intelligence arm, the Defense Intelligence Agency. Pentagon lawyers reviewed the proposal and said it complied with the treaty. Officials said the research would be part of Project Jefferson, yet another government effort to track the dangers posed by germ weapons.

A spokesman for Defense Intelligence, Lt. Cmdr. James Brooks, declined comment. Asked about the precautions at Battelle, which is to create the enhanced anthrax, Commander Brooks said security was "entirely suitable for all work already conducted and planned for Project Jefferson."
Reply to this comment
by betterusa March 3, 2010 8:18 AM EST
Espionage is punishable by execution. If our government would act swiftly with this I believe the Bergersens and Kuos of the world would lessen. Ask Ethel and Julius Rosenberg!
Reply to this comment
by rharrin1 March 2, 2010 9:02 AM EST
msay3

Same punishment = nothing no punishment goose stepping fool.
Reply to this comment
by gordonsmithr March 1, 2010 5:04 PM EST
Whatever happened to objective 60 Minutes reporting? From the opening lines this story had an obvious anti China bias. China isn't stealing anything. We all saw the tape. It was a red blooded American citizen who sold those secrets. Odd how the word traitor wasn't even mentioned.

What's next? Accuse China of stealing U.S. jobs? Ha! Our companies and our government shipped the jobs there. Clearly, China did not steal them either.

If the CIA is going to ghostwrite the stories at least try a little harder to conceal the spin. For a good twenty minutes we thought we were watching Fox.
Reply to this comment
by March 2, 2010 5:44 PM EST
Is Katie Couric being replaced by Anderson Cooper? Heard this today.
by G-mannnn March 3, 2010 12:29 PM EST
Watch the segment again. Kuo was working for the Chinese government as a spy in exchange for a allowing Kuo to expand his legitimate business into China. And yes, they were BOTH U.S. citizens and both are traitors. However, neither would have been involved in the spy business if not for the Chinese government's request for the data, so I can't see how you can justify your statement that "China isn't stealing anything."
by ibsteve2u March 1, 2010 4:51 PM EST
Hey, CBS - I think you better not publish these stories anymore; you risk the ire of the American multinationals who are selling us out to China - and that is big money in advertising.

And "big money" doesn't even come close to describing what is on the horizon, once the political advertising starts rolling out.
Reply to this comment
by cride1 March 2, 2010 8:27 AM EST
I doubt that any of the CBS producers read any of the comments here. I would be surprised if they even knew that readers/viewers could comment on their Web site!
by ibsteve2u March 1, 2010 4:32 PM EST
"Whoa, oh, are you sure that's okay?" Bergersen asked.

What an idiot. He should have incorporated, and then handed the secrets over. Then he could have claimed that the profit motive and his right to practice capitalism shielded him.

Or, if that failed, then that his corporation was just indulging its right to free speech.
Reply to this comment
by Ms_enza March 1, 2010 2:42 PM EST
Jeez, military and state secrets are SMALL potatoes.

Industrial espionage COSTS the country 10x, 100x, 1000x what the loss of military secrets costs.

And the TOP countries for industrial espionage against the US are: (envelop please),
1) France
2) Israel
3) Japan
Reply to this comment
by ibsteve2u March 1, 2010 4:33 PM EST
lolll....quote a source, and I will believe you - assuming the source is reputable.
by Ms_enza March 2, 2010 10:30 AM EST
Sorry, those were government reports from the Bush years... and you asked for "reputable" sources. Let me look about for souces since Jan 2009...
by msay3 March 1, 2010 2:15 PM EST
by rharrin1 March 1, 2010 9:36 AM EST
They should have gotten the same punishment that bush and cheney got for outing a cia agent and it's front company which is treason.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~....and exactly what was the "same punishment"???? raharrini1, why don't you crawl back under your rock before you say something really stupid!!!!
Reply to this comment
by borg99 March 1, 2010 1:42 PM EST
Five years for the sale of classified information? No wonder government employees risk selling U.S. secrets -- the punishment is incredibly light, given the gravity of the offense. I've seen people get nearly that much jail time for shoplifting.
Reply to this comment
by Ms_enza March 1, 2010 2:43 PM EST
Have you spent five years in a Federal pen?
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