Defense News 08/23/2010

Copyright 2010 Defense News $$edition August 30, 2010 8:51 pm / Powered by TECNAVIA
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8, I0hN 80
Last wook's nows that tho U.S. Trado Rop-
rosontativo is appoaling tho World Trado Or-
ganization (WTO) ruling against EADS' sub-
sidiary Airbus rogarding airlinor subsidios
is unlikoly to affoct tho Pontagon's $Jb bil-
lion KC-X contost, according to ono aviation
analyst.
In torms of whoro tho caso is in tho
procoss, [tho appoals] shouldn't havo any
boaring at all on KC-X, assuming KC-X is do-
cidod by tho timo tho longthy WTO appoals
procoss runs its courso," said Toal Group
analyst Richard Aboulafia.
Still, Evory politician on oithor sido usos
ovory talking point thoy can got. KC-X atti-
tudos aro as old as tho planos KC-X will ro-
placo, and moro rigid," ho addod.
Tho WTO's ruling, mado public in 1uno,
statos that Booing lost doublo-digit markot
sharo around tho globo to Airbus, in part bo-
causo subsidios providod by Europoan
Union govornmonts allowod tho Europoan
company to lowor its pricos.
Howovor, tho EU filod an appoal to tho
ruling oarlior this summor, a movo that will
koop tho docision tiod up in tho appoals
procoss until at loast lato zO11.
For this roason, Pontagon officials havo
ropoatodly said thoy will not factor tho WTO
ruling into tho KC-X contost, which is sot to
ond Nov. 1z.
Tho U.S. is now filing its own appoal to
tho ruling, possibly arguing that tho WTO's
docision was not harsh onough in finding
that tho subsidios hurt Booing, tho Associ-
atod Pross roportod Aug. 19.
Tho appoal makos it cloar that this was
not a comploto slap-down of Airbus and Eu-
ropoan launch aid, so that might woakon
tho caso for somo of Booing's partisans,"
Aboulafia said. But it is difficult to imagino
any lawmakors changing thoir minds about
KC-X and what tho WTO ruling moans at
this point."
Tho analyst was roforring to Booing's al-
lios on Capitol Hill, who for months havo
wagod a logislativo campaign to roquiro tho
U.S. Air Forco to factor tho prico of tho sub-
sidios Airbus rocoivod for its AJJO jotlinor
into tho ovorall prico of EADS' AJJO-basod
KC-X bid.
EADS is pitching its KC-4b tankor against
Booing's updatod vorsion of its KC-767 in
tho high-stakos compotition.
In May, tho U.S. Houso of Roprosontativos
includod languago in its vorsion of tho zO11
dofonso bill roquiring tho air sorvico to in-
cludo tho prico of tho launch aid in its oval-
uation of EADS' offoring.
Somo Booing allios in tho Sonato, howov-
or, aro not cortain such languago will bo in-
cludod in tho final vorsion of tho bill, which
facos tho throat of a prosidontial voto bo-
causo it currontly contains roughly $48O mil-
lion in funding for an altornato ongino for
tho F-Jb 1oint Striko Fightor.
In 1uno, Son. Sam Brownback, R-Kan.,
who is holping spoarhoad tho offort in tho
Sonato, said ho hopos to find a pioco of
must-pass logislation," such as a jobs bill,
to attach tho WTO languago to in caso it
fails to bo incorporatod into tho dofonso bill.
Airbus spokosman Clay McConnoll, how-
ovor, claimod tho U.S. appoal as a victory
for Airbus, saying that tho filing rovoals
somo vory intorosting things that aro con-
sistont with what Airbus has said all
along."
Most intorostingly, according to McConnoll,
is that tho U.S. did not appoal tho fact that tho
WTOcould not provo that U.S. jobs woro lost
dospito tho lost markot sharo and that
thoro was no prico-distorting offoct" of tho
EU financing.
Tho U.S. cloarly has concodod thoso
points, and now that part of tho WTO roport
can bo considorod final," McConnoll said.
Tho WTO has found that govornmont loans
to Airbus havo not rosultod in any nogativo
omploymont or pricing offoct vis--vis Boo-
ing and tho U.S. has concodod this."
A Booing spokosman doclinod to com-
mont on tho mattor, whilo officials from tho
U.S. Trado Roprosontativo's offico aro with-
holding commont until Aug. zJ, whon tho
appoal is formally submittod to tho WTO.
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8, wILLI4M M4IIhw5
Whilo sonior Pontagon officials
rosort to blustor in hopos of pro-
vonting tho WikiLoaks wobsito
from posting any moro socrot
Afghan war documonts on tho In-
tornot, socurity oxports say thoro
is a lot tho U.S. military could havo
dono to provont tho classifiod doc-
umonts from boing loakod in tho
first placo.
Stops rango from tho sophisti-
catod installing automatod
monitoring systoms on classifiod
notworks to tho mundano
disabling CD burnors and USB
ports on notwork computors.
Tho tochnology is availablo" to
protoct highly sonsitivo informa-
tion, said Tom Conway, diroctor
of fodoral businoss dovolopmont
at computor socurity giant
McAfoo. Tho Dofonso Dopart-
mont doosn't havo it, but it is com-
morcially availablo. Wo'vo got
somo major commorcial clionts
using it."
Banks, for oxamplo, uso host
data-loss provontion" softwaro to
provont thoft and accidontal dis-
closuro of customors' account in-
formation, ho said. Tho softwaro
also onforcos rulos on how data is
handlod, from which omployoos
can viow it to whothor it can bo
copiod, printod or transmittod.
By contrast, Conway said, tho
Army had somoono on a classi-
fiod notwork who was burning
classifiod stuff onto a CD or DVD."
That could havo boon blockod by
automatod socurity systoms or
at loast chockod by socurity por-
sonnol at tho door.
Thoy'vo got a problom, that's
blatantly obvious," ho said.
Tho loak of 91,OOO socrot docu-
monts has boon callod tho largost
intolligonco loak in U.S. history.
WikiLoaks has alroady postod
76,OOO documonts and says it will
soon post 1b,OOO moro. Tho wob-
sito doscribos itsolf as a public
sorvico dosignod to protoct whis-
tlo-blowors, journalists and
activists who havo sonsitivo ma-
torials to communicato to tho
public."
U.S. Army Pvt. Bradloy Manning,
zz, has boon idontifiod as a por-
son of intorost" in tho loak. Ho has
boon arrostod and chargod with il-
logally downloading classifiod in-
formation. Although Manning was
stationod in Iraq, ho was an intol-
ligonco analyst with high-lovol so-
curity cloaranco, and thus had ac-
coss to classifiod information
about Afghanistan.
Manning is roportod to havo
spont months downloading classi-
fiod documonts and copying thom
to rowritablo music CDs, which ho
thon simply carriod out through
socurity chockpoints.
If tho roports aro accurato, tho
Army onablod him to do what ho
is accusod of doing by its own do-
foctivo socurity," said Stovon Af-
torgood, who dirocts tho Fodora-
tion of Amorican Sciontists' Pro-
joct on Govornmont Socrocy.
Thoro should havo boon no CD
drivos in top-socrot torminals. It
should not havo boon physically
possiblo for anyono to download
classifiod rocords onto trans-
portablo modia. It was a socurity
failuro on tho part of tho Army
that Manning ovon had tho oppor-
tunity to do what ho [allogodly]
did."
Tho U.S. Enorgy Dopartmont
loarnod that losson a docado ago
whon nucloar woapons socrots
woro copiod onto floppy disks
,which thon disappoarod. As a ro-
sult, floppy disk drivos in comput-
ors in U.S. nucloar labs woro
soalod, Aftorgood said.
Now obsoloto, floppy drivos
havo all but disappoarod. Tho con-
tomporary oquivalont would bo to
disablo or romovo CD and DVD
drivos and USB ports that accom-
modato thumb drivos and othor
oxtornal storago dovicos.
That would mako it hardor to
copy data, but thoro's anothor ap-
proach to protocting information
closoly monitoring what is
dono with it.
Thoro is an incroasing ability to
audit ovory handling of informa-
tion on notworks, and to koop
track of oach porson who accoss-
os and manipulatos data," said
Stowart Bakor, formor assistant
socrotary in tho Dopartmont of
Homoland Socurity.
Digital documonts can bo
stampod with watormarks" that
mako it possiblo to block accoss
by unauthorizod usors and to ro-
viow how oach documont has
boon handlod by approvod usors.
Similar tochnology is usod in tho
rocording and movio industrios to
provont unauthorizod copying.
Thoy'ro not porfoct," Bakor
said, but thoy mako it moro diffi-
cult to mishandlo digital docu-
monts without accountability.
Anomaly dotoction is anothor so-
curity stop tho U.S. military could
tako. Crodit card companios havo
alroady dovolopod computor sys-
toms that aro adopt at spotting
unusual pattorns in transactions.
If you mako too many unusual
purchasos in a short poriod, Bak-
or said, tho transactions aro liko-
ly to triggor an alarm at tho crodit
card company and a phono call
about whothor tho purchasos woro
authorizod. Thoy havo rulos that
[toll thoir computors], 'whonovor
you soo this pattorn, thoro's a
problom.' "
If adoptod by tho military, tho
tochnology would alort socurity
officials whon computor usors
download unusual amounts of
data, try to copy things that
aron't supposod to bo copiod or
ovon chango browsing habits,
#trliKtws
1 |t|tsstKtws August zJ, zO1O www.dofonsonows.com
Lxperts. 0c0 Cculd Eave
Prevented \ikiLeaks Leak
A0l|0l lRA|0l-lRlSSl
Iop Secrets 0a||ae: I||s !u|] 26 p|oto s|oWs a corputer screer d|sp|a]|rg ar
'Afg|ar war 0|ar] or t|e w|||lea|s Weos|te.
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See LEAKS, Paqe 10
0822_DFN_DOM_00_004_00 (RFAD ONLY) 8/20/2010 7.45 PM Page 4
Defense News 08/23/2010
Copyright 2010 Defense News $$edition August 30, 2010 8:52 pm / Powered by TECNAVIA
J0 |t|tsstKtws August zJ, zO1O www.dofonsonows.com
w08L0 Nw5
8, wN0LL MINNI0K
I4IFI Tho roloaso of tho zO1O annual Pon-
tagon roport on Chinoso military modorn-
ization has rocoivod a topid rosponso from
China watchors in Washington and angry
protosts from Boijing.
Tho roport, mandatod by tho U.S. Con-
gross, has bocomo a lightning rod of critics
of China who say it lacks substanco, and a
sourco of complaints from Boijing, which
claims tho roports aro part of a U.S. con-
spiracy to contain China.
Thoro havo boon somo changos in tho an-
nual roport. This yoar, tho titlo was altorod
for uncloar roasons. Originally titlod Mili-
tary Powor of tho Pooplo's Ropublic of Chi-
na," it is now callod Military and Socurity
Dovolopmonts Involving tho Pooplo's Ro-
public of China."
Critics say this is an attompt to placato
China. If truo, it appoars to havo failod.
China's Ministry of National Dofonso
spokosman, Sonior Gon. Gong Yanshong, said
tho Pontagon has ignorod objoctivo facts,"
that tho roport criticizos China's normal na-
tional dofonso and military buildup," oxag-
goratos tho so-callod Chinoso mainland's 'mil-
itary throats' to Taiwan," and condomns Chi-
na for susponding Sino-U.S. military ox-
changos, thus compromising tho two coun-
trios' military cooporation."
China unilatorally discontinuod military-to-
military oxchangos with tho U.S. aftor Wash-
ington roloasod $6 billion worth of arms to
Taiwan in 1anuary. Boijing lator cancolod a vis-
it by U.S. Dofonso Socrotary Robort Gatos.
China has about 1,JOO short-rango ballis-
tic missilos aimod at Taiwan, and dospito im-
provod rolations across tho Taiwan Strait,
thoro has boon no roduction in military forco
by China, tho zO1O DoD roport said.
Tho roport is duo March 1 oach yoar and
has boon lato on a numbor of occasions, duo
to both buroaucratic and political roasons.
But in 1uly, fivo U.S. congrossmon raisod
suspicions tho Whito Houso was intorforing
with tho contont and roloaso of tho roport.
In a lottor to Gatos, tho fivo congrossmon
romindod tho dofonso socrotary that tho ro-
sponsibility for this roport lios with tho DoD
alono" and tho longthy dolay is puzzling."
Tho roport may bo a disappointmont for
many, ono U.S. dofonso industry sourco in
Washington callod it a vanilla roport." Still,
it is not viowod as a comploto failuro.
Ono aroa that is gotting praiso is tho cov-
orago of tho cybor throat and putting it in
contoxt by outlining how cybor warfaro fits
into tho othor domains of war for tho PLA
[Pooplo's Liboration Army]," said Larry
Wortzol of tho U.S.-China Economic and So-
curity Roviow Commission, Washington.
Anothor strongth is tho roport's covorago
of stratogy and docoption, ho said.
Thoro is a good troatmont of tho intornal
dobato among military porsonnol and policy
analysts in China ovor futuro rolos for tho
PLA and an oxpansion of its
missions [tho 'historic mis-
sions'] as socurity analysts in
China think about rogional
and global issuos," ho said.
Tho socurity community in-
sido and outsido tho PLA is
thinking woll boyond tho local
issuo of Taiwan."
Thoro is somo criticism that
tho roport doos not givo moro
attontion to Taiwan issuos.
Though quantity doos not noc-
ossarily oquato to quality, a
word count comparing tho
zOOS, zOO9 and zO1O roports in-
dicatos Taiwan is montionod
on avorago 1zb timos in oach
roport.
Yot, dospito dovoting a
chaptor to tho issuo of Taiwan, it's a vory briof
roviow, at tho most broad lovol of gonoralitios,
of tho things China could do to Taiwan," said
Doan Chong at tho Horitago Foundation.
Ono thing that is intorosting to noto is tho
absonco, in a vory thick roport, of any discus-
sion of tho oxtont of tho throat posod by Chi-
na's joint forcos to Taiwan," ho said. In addi-
tion, ovon tho throat aspoct [toward Taiwan]
is kind of walkod back, unliko anywhoro olso
in tho roport."
Tho tono of tho DoD is not as confronta-
tional as provious vorsions," Wortzol said.
Though thoro is a strong call to strongthon
U.S. capabilitios, dotorront capabilitios and ro-
gional alliancos and partnorships, thoro is
cortainly no sonso that tho Unitod Statos will
pull back from Asia," ho said.
And tho way that tho roport notos howChi-
na's arms salos and military activitios im-
provod its broador diplomatic posturo implios
to mo that tho U.S. intonds to rodoublo its
own offorts in thoso aroas, as rofloctod in [U.S.
Socrotary of Stato Hillary] Clinton's romarks
at ASEAN [Association of Southoast Asian
Nations]."
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|t| Ktjtrt ts |lis+ tts |s|tw+rm Ktttjtits
8, wN0LL MINNI0K
I4IFI Taiwan will bo allowod to
bid for U.S. Dopartmont of Dofonso
(DoD) contracts now that an
amondmont has boon mado to tho
U.S. Dofonso Fodoral Acquisition
Rogulation Supplomont (DFARS).
Tho docision to amond DFARS
camo aftor Taiwan bocamo a signa-
tory of tho Govornmont Procuro-
mont Agroomont (GPA) undor tho
World Trado Organization (WTO) in
1uly zOO9, said a DoD statomont.
Tho GPA opons up govornmont
contracts to intornational compoti-
tion. In Asia, 1apan, Hong Kong, Sin-
gaporo and South Koroa aro GPA
signatorios. Thoro aro a total of 41
signatory mombors of tho GPA
worldwido, including Taiwan.
Taiwan's dofonso industry is goar-
ing up to tako advantago of this now
opportunity," said a Taiwan dofonso
industry sourco.
Tho nowstatus doos not roplaco or
altor tho zOO4 Mastor InformationEx-
chango Agroomont (MIEA), which
only allows for rociprocal balancod
oxchangos of rosoarch and dovolop-
mont information" botwoonTaiwan's
Ministry of National Dofonso andtho
U.S. Dofonso Dopartmont, saida U.S.
govornmont documont.
Tho MIEAdid not allowfor tho ox-
chango of dofonso articlos or sorvic-
os, nor did it allow Taiwan compa-
nios to bid on DoD contracts.
Dospito Taiwan's long history of
producing top-tior high tochnology,
in particular information tochnolo-
gy, for tho intornational markot, it
has boon barrod from solling diroct-
ly to tho U.S. Dopartmont of Do-
fonso," said a formor DoD official.
Tho main roason was a succossful
offort by China to block Taiwan's ac-
cossion to tho GPA until last yoar.
Now that Taiwan is a mombor of
tho WTO GPA, it has bocomo oligi-
blo to soll diroctly to tho Pontagon,"
ho said.
Rolations across tho Taiwan Strait
havo groatly improvod sinco tho Boi-
jing-friondly Chinoso Nationalist Par-
ty (KMT) won both tho logislativo
and prosidontial oloctions in Taiwan
in zOOS. China oasod off offorts to
sabotago Taiwan's bid to join intor-
national agroomonts and organiza-
tions liko tho WTO GPA. Though
Taiwan has boon a WTO mombor
sinco zOOz, it has not boon allowod
GPA status.
China is not a party to tho GPA,
though sinco zOOJ, it has sorvod as
an obsorvor" to tho agroomont and
is in nogotiations for accossion.
Thoro aro a total of zJ obsorvors in
tho GPA.
Taiwan producos a considorablo
amount of tho bost off-tho-sholf
tochnology that tho U.S. govornmont
sponds billions procuring ovory
yoar," said Ruport Hammond-Cham-
bors, prosidont of tho U.S.-Taiwan
Businoss Council, Washington. Tai-
wan producos ovorything from por-
sonal computors and laptops to
clothing and tools, ho said.
Taiwan has always domonstratod
a capacity to produco goods at low
cost and high quality with spood to
markot," ho said. It will mako thom
woll-suitod and compotitivo to oxo-
cuto quickly on prico and quality for
govornmont roquiromonts."
Howovor, tho procoss of broaking
in Taiwan companios as DoD sup-
pliors will bo slow.
Initially, tho bonofits aro minimal.
Doing businoss with tho U.S. gov-
ornmont and moro spocifically tho
U.S. Dopartmont of Dofonso is a
highly complox mattor, and Taiwan
companios havo no oxporionco in
solling to this customor," Hammond-
Chambors said.
That said, ovor timo it is likoly
that Taiwan will bocomo an incroas-
ingly important vondor for tho U.S.
govornmont and tho Dofonso Do-
partmont," ho said.
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1aiwan 1c Ccnpete lcr 0c0 Ccntracts
A0l|0l lRA|0l-lRlSSl
keport qaest|oaed: 0||ra's r|ss||e fr|gate Va'Ars|ar saW act|or |r
Sora||a aga|rst p|rates. 0r|t|cs sa] a u.S. report or 0||ra's r|||tar]
poWer |s too soft or be|j|rg.
Bakor said.
Tho govornmont has talkod
about doing this sinco [ox-FBI
agont Robort] Hansson" was dis-
covorod in zOO1 to bo a spy, said
1amos Lowis, a cyborsocurity ox-
port at tho Contor for Stratogic
and Intornational Studios.
Hansson sold socrots to tho So-
viots and lator tho Russians for zz
yoars boforo ho was caught. Ho
might havo boon caught oarlior if
tho FBI had monitorod its com-
putor systoms moro closoly.
Dofonso Socrotary Robort Gatos
said tho military is taking action
in thoator to provont a ropoat of
such a broach, to includo tighton-
ing procoduros for accossing and
transporting classifiod informa-
tion." Noithor tho Pontagon nor
tho Cybor Command providod do-
tails on tho stoppod-up socurity
moasuros.
Gatos said an omphasis on in-
formation may havo mado it oasi-
or to download and loak data.
Ono of tho lossons loarnod
from tho first Gulf War in 1991
was how littlo usoful intolligonco
information was boing rocoivod by
battalion and company command-
ors in tho fiold," Gatos said. So
thoro has boon an offort ovor tho
last 1b yoars ... to push informa-
tion as far forward as possiblo."
In part, that has moant putting
it in a socrot channol that almost
ovorybody" in uniform and many
civilians can accoss, Gatos said.
Ono of tho things wo'ro going to
havo to look at is should wo
chango tho way wo approach that,
or do wo continuo to tako tho
risk."
It's possiblo to continuo provid-
ing accoss to tho information, but
still roduco tho risk, Lowis said.
You nood to do tho flip sido of in-
formation sharing accoss con-
trol and control of information."
Tho idoa isn't to provont pooplo
from gotting tho information thoy
nood, but to sot rulos for informa-
tion uso and omploy computor
systoms that onsuro tho rulos aro
followod.
Softwaro and hardwaro oxists
that will alort administrators whon
camoras, thumb drivos or rocord-
ing dovicos aro pluggod into not-
work computors, whon forbiddon
matorial is downloadod, or whon
unusual bohavior is dotoctod.
If somoono downloads 1O,OOO
pagos, it will notify you," Lowis
said. Tho military rolios on its
pooplo [not to violato rulos].
That's not onough in a digital on-
vironmont."
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||K!
Frou Paqe
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