Submission + - Cold War, NSA, GCHQ and Encryption (bbc.com)
Upon learning of Mr. Bamford's discovery the NSA promptly had the papers locked up in a vault
In 1995, journalist Scott Shane, then at the Baltimore Sun, found indications of contacts between the company and the NSA in the 1970s, but the company said claims of a deal were "pure invention"
The new revelations of a deal do not come from a whistleblower or leaked reports, but are buried within 52,000 pages of documents declassified by the NSA itself this April and investigated by the BBC
The relationship was based on a deep personal friendship between Hagelin and Friedman, forged during the War. The central document is a once top-secret 22-page report of a 1955 visit by Friedman to Zug in Switzerland, where Crypto AG was based
Some elements of the memo have been redacted — or blacked out — by the NSA. But within the released material, are two versions of the same memo, as well as a draft
Each of the versions has different parts redacted. By placing them side by side and cross referencing with other documents, it is possible to learn many — but not all — details. The different versions of the report make clear Friedman — described as special assistant to the director of NSA — went with a proposal agreed not just by US, but also British intelligence
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Friedman offered Hagelin time to think his proposal over, but Hagelin accepted on the spot
The relationship, initially referred to as a "gentleman's agreement", included Hagelin keeping the NSA and GCHQ informed about the technical specifications of different machines and which countries were buying which ones. The provision of technical details "is a revelation of the first order," says Paul Reuvers, an engineer who runs the Crypto Museum website
"That's extremely valuable. It is something you would not normally do because the integrity and secrecy of your own customer is mandatory in this business"
The key to breaking mechanical encryption machines — such as Enigma or those produced by Hagelin — is to understand in detail how they work and how they are used. This knowledge can allow smart code breakers to look for weaknesses and use a combination of maths and computing to work through permutations to find a solution. In one document, Hagelin hints to Friedman he is going to be able "to supply certain customers" with a specific machine which, Friedman notes, is of course "easier to solve than the new models"
Previous reports of the deal suggested it may have involved some kind of backdoor in the machines, which would provide the NSA with the keys. But there is no evidence for this in the documents (although some parts remain redacted)
Rather, it seems the detailed knowledge of the machines and their operations may have allowed code-breakers to cut the time needed to decrypt messages from the impossible to the possible
The relationship also involved not selling machines such as the CX-52, a more advanced version of the C-52 — to certain countries. "The reason that CX-52 is so terrifying is because it can be customised," says Prof Richard Aldrich, of the University of Warwick. "So it's a bit like defeating Enigma and then moving to the next country and then you've got to defeat Enigma again and again and again"
Some countries — including Egypt and India — were not told of the more advanced models and so bought those easier for the US and UK to break
In some cases, customers appear to have been deceived. One memo indicates Crypto AG was providing different customers with encryption machines of different strengths at the behest of Nato and that "the different brochures are distinguishable only by 'secret marks' printed thereon"
Historian Stephen Budiansky says: "There was a certain degree of deception going on of the customers who were buying [machines] and thinking they were getting something the same as what Hagelin was selling everywhere when in fact it was a watered-down version"
Among the customers of Hagelin listed are Egypt, Iraq, Saudi Arabia, Syria, Pakistan, India, Jordan and others in the developing world
In the summer of 1958, army officers apparently sympathetic to Egyptian President Gamal Abdel Nasser overthrew the regime in Iraq. Historian David Easter, of King's College, London, says intelligence from decrypted Egyptian communications was vital in Britain being able to rapidly deploy troops to neighbouring Jordan to forestall a potential follow-up coup against a British ally
The 1955 deal also appears to have involved the NSA itself writing "brochures", instruction manuals for the CX-52, to ensure "proper use". One interpretation is these were written so certain countries could use the machines securely — but in others, they were set up so the number of possible permutations was small enough for the NSA to crack
In a statement, a GCHQ spokesman said the agency "does not comment on its operational activities and neither confirms nor denies the accuracy of the specific inferences that have been drawn from the document you are discussing"
The NSA also declined to comment on the specific conclusions