QUESTION: IS THIS A SELF-INDUCED SECURITY BREACH?

A safety and security paradox …

The United States is facing a peculiar situation: we are simultaneously seeking to expand mutual trade with China while we are apparently defending against an onslaught of covert and overt electronic attacks from our ideological enemies. Which presents a rather perplexing paradox, how far do we allow Chinese government-backed vendors to access our critical infrastructure.

One: We already have a major foreign influence in a critical west coast trade and population center.

China Ocean Shipping Company (COSCO), a government owned company of the People's Republic of China, now occupies the cargo terminal created from the old Long Beach Naval Station property that was decommissioned years ago. And some defense experts consider COSCO to be the “merchant marine” arm of the Chinese military.

Two: Our safety and security authorities admit that this particular installation would be a prime target for the transshipment of contraband as well as chemical, biological and nuclear weapons.

Furthermore, due to the high number of containers handled in-port, we are unable to perform a 100-percent inspection of incoming cargo. Cargo which is then sent forth by truck and rail to all parts of the United States.

“Needle in a haystack”

Three: We know that the Chinese have attempted to electronically infiltrate defense and commercial installations.

Chinese Spies, Hackers or Both?

“The US is also thought to have suffered cyber attacks originating from China. In September 2007 the Chinese military were blamed for a cyber attack, which targeted a Pentagon computer system serving the office of US defense secretary Robert Gates. Last month, Computer Fraud & Security reported that the US China Economic and Security Review Commission warned that China is likely planning cyber attacks against the US. It said that attacks on the US financial, economic, energy and communications infrastructure were possible.” <Source>

And, of course, the Chinese government often claims no responsibility, citing unknown independent hackers for malicious traffic originating in China and elsewhere. 

Doctored Electronic Devices?

Cisco Internet components, including routers and switches, provide access to the majority of the public and private networks in the United States.

“U.S. and Canadian law enforcement authorities have seized more than US$78 million worth of counterfeit Cisco Systems networking equipment in an ongoing investigation into imports from China, the U.S. Department of Justice and other agencies.”

" ‘Counterfeit network hardware entering the marketplace raises significant public safety concerns and must be stopped,’ Assistant Attorney General Alice Fisher of the DOJ's Criminal Division, said in a statement. ‘It is critically important that network administrators in both private sector and government perform due diligence in order to prevent counterfeit hardware from being installed on their networks.’" 

“On Jan. 4, a grand jury in U.S. District Court for the Southern District of Texas indicted Michael Edman, 36, and his brother Robert Edman, 28, for trafficking in counterfeit Cisco products. The indictment alleges that the Edmans purchased and imported the counterfeit computer network hardware from an individual in China, then selling the products to retailers across the U.S. The Edmans shipped some of the counterfeit hardware directly to the U.S. Marine Corps, Air Force, Federal Aviation Administration, FBI, defense contractors, universities and financial institutions, according to the indictment.”  <Source>

So why would the Port of Los Angeles purchase “security scanners” from a Chinese firm?

“Government Security News notes that the Port of Los Angeles has purchased a sophisticated high-energy X-ray security scanning system from a Chinese manufacturer. Its stated purpose makes it a bit player in the port’s operations: inspect trucks delivering food, groceries and other supplies to cruise ships that dock in LA.”

“What raised more eyebrows was the identity of the Chinese manufacturer. NUCTECH is run by 37 year old Hu Haifeng, the son of PRC President and Communist Party General Secretary Hu Jintao.”

“System requirements include the ability to capture, store and transmit 25,000 or more X-ray images and associated documents for remote viewing, and it will be paid for with a $1.7 million port security grant awarded by the U.S. Department of Homeland Security.”

NUCTECH has won business in Europe, and now in America, by significantly underpricing its competitors. That was also true in Los Angeles, where their $1.9 million bid fronted by DULY Research Inc. in Rancho Palos Verdes, CA beat competitors Smiths GE Detection ($2.7 million) and Rapiscan ($2.9 million). That pricing, and the vendor, have both caused some controversy, but the port is sticking by its guns.

Other details emerge …

" ‘We were cognizant of the fact that we were the first port to acquire this Chinese system,’ said George Cummings, the port’s director of homeland security. ‘They were the low bidder and they complied with all the technical requirements,’ he added.”

“Some observers of the transaction have raised questions about the wisdom of U.S. tax dollars being handed to a Chinese manufacturer, the degree to which Nuctech may have ‘reverse engineered’ the X-ray technology originally developed by Western companies, the possibility that Nuctech may have had its price subsidized by the government of the People’s Republic of China, and the notion that Nuctech may have engaged in illegal ‘dumping’ by offering its product below its own manufacturing costs.”  

“[George] Cummings, the homeland security director at the port, told GSN he is not troubled by any of those possibilities.”

Well done, Brownie?

He also explained that U.S. Government officials at the Federal Emergency Management Agency (FEMA), which administers the department’s grant programs, knew about the equipment’s origin in China and had no objection to authorizing a cost reimbursement to the California port.

Who else is watching the port?

“Critics of the transaction, who requested anonymity, raised the specter of sensitive X-ray images and cargo manifests being archived on the X-ray scanning system and, perhaps, transmitted via the Internet back to Nuctech in China, or to the Chinese government. Indeed, the mobile system was required to offer that technical capability.”

"Automatic digital image archiving with image review of 25,000 images or greater with a flatbed scanner to record, save and associate related documents and notes including system operators, recipient, date and time," was listed as one required capability in the port’s official specification document.

" ‘Nuctech will supply the wireless devices for transmission of images to remote inspection location, and for uploading data via internet,’ promised Nuctech, in its formal proposal to the port.
“Cummings acknowledged that the system theoretically could capture, store and transmit such X-ray images -- and transmit them to China or elsewhere -- but wondered who might have any interest in meaningless images of meat and groceries.” 
<source>

Bottom line … What were we thinking?

Since most scanners use extremely sophisticated microprocessors and complex software, I can’t help wondering if this is an inexpensive Trojan horse with a programmable capability to turn a blind eye to certain pre-determined types of contraband?

Or will operating experience lead to improvements which benefit the Chinese vendor?

But most importantly, the wisdom of purchasing security equipment and systems from those traditional enemies who openly profess friendship while planning covert operations against the country’s defense and commercial infrastructure.

And, of course, I can’t help wondering if there were any lobbying firms, political connections and other indications of inappropriate behavior in the acquisition process. Considering that it wouldn’t be the first time that outside influence was brought to bear on local officials, it might be worth a follow-up investigation.

What can YOU do?

First, we need to let our elected officials know that we want a “Buy American” clause inserted into all contracts involving purchases of security equipment. We need to keep our money in our economy as well as to insure that the equipment we are receiving does not serve some sovereign master.

Second, we need to re-think protection methods which allow foreign access to our infrastructure and institutions. We have seen spies within the FBI, serious breaches of security in our nuclear research institutions and compromises in many of our law enforcement organizations. Without getting overly paranoid – wait a minute, that’s the job of our intelligence and security people – to be more paranoid, we need to heighten our security measures in these uncertain times.

We must, as citizens, realize that we are selling off America to foreign sovereign entities, one property at a time. We need to insure that greed, and political corruption, does not lead to a material weakness in our military or commercial defenses.

We need to elect politicians who understand the importance of the military, willing to fund additional intelligence and have the courage to defend America from her enemies, both foreign and domestic.

-- steve

Quote of the day: “Committee--a group of men who individually can do nothing but as a group decide that nothing can be done.” - Fred Allen

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

Port of LA Buys Security Scanners from Chinese Firm

Port of L.A. buys Chinese X-ray scanning system with U.S. taxpayer money

Comments

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