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U.S. high-tech industry feeling the heat from Edward Snowden leaks

Ellen Messmer | July 22, 2013
Also: Former NSA chief accuses Chinese firm Huawei of spying for China; Pres. Jimmy Carter bashes NSA, praises Snowden.

""Recent leaked documents have focused on the addition of HTTPS encryption to instant messaging, which is designed to make this content more secure as it travels across the Internet," Microsoft counsel Smith wrote. "To be clear, we do not provide any government with the ability to break the encryption, nor do we provide the government with the encryption keys. When we are legally obligated to comply with demands, we pull the specified content from our servers where it sits in an unencrypted state, and then we provide it to the government agency."

Microsoft's SkyDrive and Skype  is handled somewhat similarly in terms of government requests, Smith said. As far as enterprise and document storage for business customers, "we take steps to redirect the government to the customer directly, and we notify the customer unless we are legally prohibited from doing so," Smith stated in his July 16 post. "We have never provided any government with customer data from any of our business or government customers for national security purposes."

Smith added Microsoft got four requests related to law enforcement in 2012. "We do not provide any government with the ability to break the encryption used between our business customers and their data in the cloud, nor do we provide the government with the encryption keys."

In the meantime, it's safe to assume in this NSA leaks debacle that "the bad guys have switched tactics" and probably wouldn't use U.S.-based high-tech services, Dickson points out. And in this atmosphere of rising cyber-nationalism, the possible role of China's government and its own high-tech industry have to be asked, too, he noted.

Former head of the U.S. Central Intelligence Agency and the NSA, Gen. Michael Hayden, yesterday charged forward on that topic in an interview with The Australian Financial Review.

Hayden said he believes that China-based network vendor Huawei conducted clandestine activities and shared with the Chinese state "intimate and sensitive knowledge of the foreign telecommunications systems it is involved with." According to the published report, Gen. Hayden said the Huawei is a significant security threat to Australia and the U.S., has spied for the Chinese government, and intelligence agencies have evidence of this.

A Huawei spokesman, John Suffolk, Huawei's global cyber security officer, is quoted by the Australian publication yesterday as calling Hayden's remarks "unsubstantiated and defamatory" and that any critics of the company should present any evidence publicly.In an opinion piece on today, Gen. Hayden railed openly against Edward Snowden as a national security threat, saying he "fled to China with several computers' worth of data from NSANET, one of the most highly classified and sensitive networks in American intelligence."


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