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MUMBAI| 14 JUNE 2015

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China-linked hackers get sensitive

CIA, defence and intelligence data

Focus at Paris
air show shifts
to order backlog

Data containing personal information on nearly all of the millions of US security-clearance holders has been exposed
REUTERS

White House
contemplates
sanctions after
second breach

Washington, 13 June

hina-linked
hackers
appear to have gained
access to sensitive background information submitted
by US intelligence and military
personnel for security clearances that could potentially
expose them to blackmail, the
Associated Press reported on
Friday.
In a report citing several US
officials, the news agency said
data on nearly all of the millions of US security-clearance
holders, including the Central
Intelligence Agency, National
Security Agency and military
special operations personnel,
were potentially exposed in the
attack on the Office of
Personnel Management (OPM).
It said more than 2.9 million
people had been investigated
for a security clearance as of
October 2014.
The OPM did not immediately respond to requests for
comment, but a senior US official confirmed that US investigators had discovered a separate attack on the OPM that
targeted sensitive information
about government employees
similar to a hacking incident
revealed last week.
The official, who spoke on
condition of anonymity, could
not confirm that the information obtained was from US
intelligence and military personnel but did say it was a different set of OPM systems and
data to that of the hack disclosed last week and did involve
background data and security
clearances. A source familiar
with the investigation said US
investigators suspected a similar Chinese link to the other
hacking incident.
Earlier on Friday, the White
House said it could not confirm
another AP report that as many

MICHAEL D SHEAR &

SCOTT SHANE
Washington, 13 June

NEW THREAT Form 86, which is believed to have been hacked, required applicants to fill out deeply personal information

Passport, visa systems hit

by technical problems
REUTERS
June 13

The US State Department said

on Friday it was having
technical problems with its
overseas passport and visa
systems, and was
investigating the root cause
of the issue.
Asked what caused the
problems and whether it was
as 14 million current and former
US government employees had
their personal information
exposed to hackers in the other
OPM breach.
The government said last
week that the records of up to 4

a malicious action or hack,

the State Department said:
We are working urgently to
correct the problem and
expect the system to be fully
operational again soon.
Passport applications
accepted overseas on or
after May 26 were affected, it
said, adding that passports
for emergency travel could
be issued.
million people had been compromised, making it one of the
biggest known attacks on US
federal networks. White House
spokesman Josh Earnest said
the investigation was continuing into this breach.

The AP report said a form

authorities believed to have
been accessed in the breach
involving the intelligence and
military personnel, Standard
Form 86, required applicants
to fill out deeply personal
information about mental illnesses, drug and alcohol use,
past arrests and bankruptcies.
The form required the listing
of contacts and relatives, potentially exposing any foreign relatives of US intelligence employees to coercion, the report said.
The form also required the applicants Social Security number
and that of their cohabitant.
Later on Friday, without
referring to the AP report, the
Obama administration said it
had ordered federal agencies to
take extra steps to protect US
government computer systems.
Recent events underscore
the need to accelerate the

Administrations cyber strategy and confront aggressive,

persistent malicious actors
that continue to target our
nations cyber infrastructure,
the White House said in a
statement outlining its security measures.
Fridays reports came as
President Barack Obamas top
national security adviser, Susan
Rice, met with a top Chinese
military officer, General Fan
Changlong, at the White House
and stressed the need for the
United States and China to narrow disagreements, including
on cyber security.
China, which is also at odds
with the United States over
Beijings increasingly assertive
pursuit of territorial claims in
the South China Sea, has
rejected as irresponsible any
allegations that it was behind
the hacking.

The White House said that

President Obama was
considering financial
sanctions against the
attackers who gained
access to the files of
millions of federal workers.
Investigators had already
said that Chinese hackers
appeared to have obtained
personal data from more
than four million current
and former federal
employees in one of the
boldest invasions into a
government network.
At the White House,
officials said that Obama
was weighing the use of an
executive order he signed
in April that allows the
Treasury secretary to
impose sanctions on
individuals or groups that
engage in malicious
cyberattacks.
This newly available
option is one that is on the
table, said Josh Earnest,
the White House press
secretary.
Obama signed the order
after the attack on Sony
Pictures computer
network, an intrusion that
American officials believe
was carried out by the
government of North
Korea.
2005 The New York Times
News Service

China reaffirms
2030 climate
commitments

US-Cuba deal expected in early July

to restore ties, reopen embassies

REUTERS

REUTERS

Shanghai, 13 June

Washington, 13June

Chinas Premier Li Keqiang

reaffirmed the governments
commitment to achieve peak
carbon emissions by around
2030, the State Council said
in a statement issued late on
Friday.
The statement contained
no new commitments ahead
of crucial climate talks scheduled to take place in Paris at
the end of the year.
Li, at a meeting of the
State Councils National
Leading Group on Climate
Change, also said it would
impose a tough limit on the
expansion of heavily polluting and energy-intensive
industries.
Chinas coal consumption
decreased for the first time
in years in 2014, leading
some to speculate that its carbon emissions could peak
sooner than many had
expected.
As the countrys energyintensive heavy industrial
sector has suffered over the
past two years, electricity
production responsible for
the bulk of coal consumption
in China has also lagged.

The Obama administration is

expected to announce an
agreement with Cuba in early
July to reopen embassies and
restore diplomatic relations
severed more than five decades
ago, US sources familiar with
the matter said on Friday.
The two sides hope to conclude the deal by the first week
of next month, clearing the way
for Secretary of State John
Kerry to visit Havana soon
afterwards for a flag-raising
ceremony to upgrade the US
Interests Section to a full-scale
embassy, the sources said.
Since a breakthrough
between the two former Cold WARMING UP People wait to apply for visas outside the US Interests Section (background), in
War rivals announced in Havana. US is set to upgrade the Interest Section to a a full-scale embassy soon
December, negotiators have
settled all but a few differences would dominate Kerrys sched- fy Congress within the next two fast the two sides would act in
and were confident they would ule over the next weeks.
weeks of its intention to reopen naming ambassadors.
As part of its preparations to
soon be resolved, several
Restoration of relations the Havana embassy. The State
sources told Reuters.
would be the latest phase in a Department is required by law turn its interests section in
They said the exact normalisation process, which is to give Congress at least 15 days Washington into a full-fledged
embassy, Cuba erected a large
timetable for the formal expected to move slowly notice of such an action.
embassy opening was unclear because of lingering problems
Cubas Communist govern- flagpole on the front lawn of the
because of Kerrys recovery over issues such as Cubas ment is likely to act in sync building on Wednesday. The
from a broken leg suffered in a human rights record. A US with the United States on flag itself will await the
May 31 biking accident in embargo will remain in place, reopening of the embassies, formal announcement of
issuing its own announcement relations.
France, as well as the looming and only Congress can lift it.
Obama and Cuban President
June 30 deadline for a final
The sources said the admin- on restoring ties, one source
nuclear deal with Iran, which istration hoped to formally noti- said. But it was unclear how Raul Castro pledged full restora-

tion of ties on December 17. The

two leaders met in Panama in
mid-April.
Cuba was formally removed
from the US list of state sponsors
of terrorism late last month, a
critical step toward rapprochement 54 years after Washington
cut off relations at the height of
the Cold War and imposed an
economic embargo.
US and Cuban negotiators
have resolved all but a few
minor differences since the last
round of high-level talks in
May in Washington, the
sources said.
The main obstacles had
been US demands for relative
freedom of movement for their
diplomats on the island, comparable to that in Russia and
Vietnam, while the Cubans had
objected to US training courses
in journalism and information
technology given at the US
interests section in Havana.
Negotiators are now settling
issues such as how many shipping containers will be allowed
into Havana for renovating the
US mission there.
US officials say there is little,
if any, chance that hardline
anti-Castro lawmakers in
Congress would be able to
block the restoration of ties.

IN TANDEM A flying display during the Paris air show in 2013

making that big investment
and watching it all fall down,
said aerospace analyst Richard
After years of big-ticket plane Aboulafia, vice-president at
orders, next weeks Paris Virginia-based Teal Group.
Airshow will see rather fewer
Asked on the eve of the
multi-billion-dollar deals and show whether solid producrather more nervous expres- tion lines were more imporsions as planemakers face the tant than chasing new orders,
daunting task of producing $1.8 Airbus CEO Fabrice Bregier
trillion of jets already sold.
told Reuters, I hope we can
The worlds biggest aero- do both.
space gathering will still have
Boeing raised its forecast
its fair share of announce- for jet demand on Thursday
ments, including a potential and Airbus is expected to fol100-plane leasing order for low suit when it outlines its
Boeing, as well as the show- latest market forecasts
manship that goes with any on Monday.
public contest with European
But barring last-minute
arch-rival Airbus. But with deals, several industry sources
almost a decades worth of said the two plane giants may
production on their books, struggle to announce 500
any new business is likely to orders between them, combe couched in tougher than pared with 697 at the
ever warnings that factories Farnborough event last year.
must execute to
Some analysts have
win long term. And Plane makers
predicted higher
many
analysts face the
orders, especially
believe the order daunting task
from Airbus.
party is winding of producing
But unlike predown.
$1.8 trillion of jets vious years, indusGiven the fact already sold but
try sources said
that order books not delivered
there was less rush
have swelled so
to complete orders
large, it is unlikely that the in time for this year's show, a
headlines will be about large sign that the recent order wave
blocks of orders at this show appears to be maturing.
and much more about the proA keenly-awaited final
duction process and viability order for 250 Airbus planes
of the supply chain, said aero- from Indias IndiGo is not
space consultant Jerrold expected to be finalised at
Lundquist, managing director the event.
of The Lundquist Group.
The show is also seen
Although the battle for unlikely to bring Airbus
market share in orders will immediate respite from slow
always be there, the contest for sales of the A380 superjumbo,
delivery share is growing, as with all eyes instead on a poseach player strives to ramp up sible relaunch at the Dubai
their production output. Low Airshow in November.
interest rates and high oil
Airbus Group Chief
prices created a stampede of Executive Tom Enders was
orders for new planes and fuel- quoted on Friday as saying a
saving spin-offs of existing decision on whether to
ones in recent years, leaving upgrade the double-decker
some 12,000 jetliners left to with new engines, using a
produce and lifting shares formula that has worked for
across the aerospace sector.
the companys smallest
We are getting to volumes planes, would be taken by
where you need to build a sin- year-end.
gle aisle aircraft every 6.5 hours.
In the skies, the show will
It is a drumbeat and intensity mark the first head to head flythat is very demanding, ing demonstration between
Airbus Chief Operating Officer Boeing's 787-9 and the A350Tom Williams told reporters 900, two new carbon-fibre jets
ahead of the air show.
winning sales in the wide-body
But French engine maker market.
Safran injected a note of cauIt will also be a victory lap
tion this week by saying its for France's Rafale fighter
priority would be to meet its which stunned the defence
already record commit- industry by winning a trio of
ments, before thinking about export orders in recent
further production increases months after years of frusbeing explored by some trating losses.
planemakers.
It is an opportunity too for
A profit warning ahead of some recently developed airthe show from French seats craft to restore their image
maker Zodiac Aerospace high- after a spate of problems.
lighted concerns about ten- Canadas Bombardier will be
sions in the supply chain, bringing both its new CSeries
though some suppliers fear jet- plane and a new managemakers are raising production ment team as it attempts to
too quickly to fuel their own kickstart a project designed
market battles.
to challenge the duopoly of
You have to balance mar- Airbus and Boeing, after
ket share with execution. A lot missing its Farnborough
of suppliers are worried about debut last year.
REUTERS

Paris, 13 June

Pollution trial offers rare glimpse into a Chinese courtroom

REUTERS
Hengdong (China), 13 June

OPEN CHAMBERS: CCTV footage of a judge reading out the sentence in a case in China

Unless they have been accused

of a crime, few foreigners ever
see the inside of a courtroom in
China. But on Friday a court in
Hengdong, a rural town in central China, gave Reuters a rare
insight into the Chinese justice
system, allowing a reporter to
observe the trial of a local factory accused of pollution that
allegedly exposed 13 children living nearby to excessive levels of
lead.
The first day of Melody
Chemicals trial was a window
into how one local government
is interpreting Chinese president
Xi Jinpings call for a stronger
rule of law and tougher environmental enforcement.
The Melody plant, located in
Dapu village about a half hours

drive from the court, made

headlines last year after Chinese
state broadcaster CCTV ran an
expose that said more than 300
local children had high levels of
lead in their blood.
The government subsequently ordered an investigation
and Melody was shut down.
Even before the trial, environmental lawyers hailed
Hengdong courts acceptance
of the case as progress. In the
past, Chinese courts have
refused to hear controversial
pollution cases.
Foreign news organisations
are usually refused access when
they apply or show up to cover
trials in China.
In recent years though, in
hopes of raising public confidence in the law, Beijing has
been trying to make its judicial
system more transparent.

Judgments are increasingly rity chief Zhou Yongkang in

posted online and some courts secret on May 22, and sentenced
have started to stream proceed- him to life in prison.
ings live and post on social
In Hengdong, Reuters was
media.
apparently the only media, forIn 2013, a Chinese court used eign or domestic, in the courtWeibo, Chinas equivroom, despite eight
alent of Twitter, to In hopes of
places being reserved
broadcast the pro- raising public
for the press. The
ceedings of the trial of confidence in
three judges hearing
fallen politician Bo the law, Beijing the trial appeared
Xilai.
has been trying impartial.
The southern city to make its
On at least two
of Shenzhen, where judicial system
occasions, they asked
the government often more transparent Melodys more thefield tests new poliatrical, long-winded
cies, has made seats available to legal team to keep their comthe press in some court cases ments brief and asked the plainsince 2012, according to Chinese tiff's team to do so at least once.
media reports.
When a Melody lawyer was
The new openness has limits cross-examining the only witthough. On Thursday, despite ness, an expert on childhood
promises of an open trial, a lead exposure from Shanghai
Chinese court announced that it Jiaotong University School of
had tried former domestic secu- Medicine, a judge intervened to

say the lawyers line of questioning was inappropriate.

Court police called for quiet
when some observers burst into
laughter at a lawyer for Melody
saying that living close to the factory was safer than living far
away.
Many of the plaintiffs,
though, seemed more enraged
by Melodys lawyers defence
than impressed with the judicial
process.
At the end of proceedings,
families yelled at Melodys
lawyers, and in the ensuing scuffle, a disabled family member
fell to the floor. Of the more than
50 families who originally
agreed to participate in the lawsuit, only 13 remained by the trial. Some of these dropped out
under government pressure,
according to Hu Shaobo, one of
the plaintiffs lawyers.