------------------------------------------------------------------------------
Transcript of CBS Evening News spy segment (May 19, 1994, 6:30pm)
------------------------------------------------------------------------------
 
Connie Chung: And later, Eye on America, Tonight, how a foreign
power may be planting the seeds in your backyard.

......
Chung: Comming up next, Eye on America. Tonight, the biggest spy network in
America. We'll tell you who's running it and how.

Connie Chung, co-anchor:

The recent Ames spy case served as a reminder that the espionage bussiness in
this country is still thriving; that you don't always find spies in trench
coats and that you could find them in the house next door. In a special
investigation, CBS News found out how China is grooming agents to keep an Eye
on America.

Unidentified Woman:  Only US citizens continue straight ahead. 

Chung: Every day, planeloads of Chinese citizens arrive legally in the United
States, ordinary people. But to the Chinese government, some of them may be
future spies, who a few year down the road, will be activated to steal
America's military and technological secrets, whether they want to or not. 

Are there any other contries that you know of that have this kind of spy
network operating here in the United States?

Mr. Nicholas Eftimiades (Defence Information Agency): No. Not-certainly not to
this--to this degree.

Chung: Nicholas  Eftimiades, who works for an American spy agency, the Defence
Information Agency. His new book on Chinese intelligence raise questions for
American government and business.

Mr. Nicholas Eftimiades: I don't think we can say at this point any Western
government is prepared to deal with this type of espionage threat, because it's
different from anything that we've known to date.

Chung: It all start here in Beijin. A Chinese student or scientist or
businessperson applies for a visa to go to the US. Then the Ministry of State
Security asking questions: What cab you learn in the State> Will you be working
with computer? Will you be loyal to China? And most importantly, can you be
patient? Eftimiades says the prospective spiues are trained, paid and warned to
stay in touch, 'Remember.' they are told. 'we'll be watching your family
members in China.' 'Lay low until you're contacted.' they are told. It could be
years.

Mr. Nicholas Eftimiades: Let me put it to you in the terms that the Chinese
Intelligence Service describes it: Chen di yu, which is a Ministry of State
Security slang term for fish on the bottom of the ocean. This has been defined
in  Western espionage as sleeper agents.

Chung: So they just sit there like fish at the   bottom of the ocean and do
nothing?

Mr.   Nicholas Eftimiades: They wait.

Chung: Until they have to surface.

Mr. Nicholas Eftimiades: Exactly.

Chung: This man is one of those Chinese fish at the bottom of the American
ocean. Call him a reluctunt spy. he's afraid he'll be contacted soon to hand
over state-of-the-art computer programs.

Unidentified Man#1: Never forget, you belong to our organization.

Chung: ' Never forget," they told him, ' you belong to our organization.'

Man#1: You were sent by our organization.

Chung: ' You were sent by our organization, and this organization belongs to
the Communist Party.'

Man#1:...Communist Party.

Chung; Twenty-three years ago this man, Kao Yen Men, came to the US. In recent
years, he lived a quiet life in this house in Cherlotte, North Carolina, and he
even bought a restaurrant in downtown Cherlotte. His neighbors never knew what
he was up to.

Unidentified Man #2: I really didn't know what to think. I mean, you know, we
came down to this nice little Southern city, and the next thing you know I'm
down the street from a spy. I thought this was, like, a little friction movie
or something, but...

Chung: Some movie. After a six-year FBI investigation, Kao was arrested and
charged with trying to steal the advanced Mar 48 torpedo, engine for the FA-18
Homet jet fighter and radar for the F-16 Falcon jet. Kao was caught, but
security expert 'Pat pattakos says most American companies are too naive about
the Chinese spy thret.

Mr. Arion "Pat" Pattakos (Beta Analysis): Right now a lot of people don't
really think of the protecting themselves.

Chung: Especially when the target is information and computer data...

Mr.  Pattakos: They'll look at all this information here that they can access.

Unidentified man #3:  Yes.

Chung: ...all part of the more and more accesible information superhighway.

Mr.  Pattakos: I mean, it's very easy to know when a truck is missing in front
of your place. I mean, it's gone. It's physical object. But think about
information. Information is more intangible, and people may not know--realize
that it's lost.

Chung: pattakos says a new national strategy between business and government
can trap the spies.  Eftimiades is much less optimistic.

Mr. Eftimiades: Once these spies get into American society, once they're deeply
rooted into our structure, our society's structure, we're not going to be able
to detect them. There is no way to stop them at this point.

Chung: The FBI is trying to help American corporation protect themselves from
espionage. The bureau has a program now to brief executives about how their
companies could become targets. Dan.

 ......