The 'spy rock' diplomatic scandal that damaged British-Russian relations in 2006 was genuine, according to Tony Blair's former chief of staff.
In a plot that seemed toofar-fetched even for James Bond, five men were accused of using technology in the hollowed-out rock, placed surreptitiously on a Moscow street, to spy on Russia.
At the time, Britain dismissed allegations from Moscow that the men had been "caught red-handed" using a transmitter inside the rock to download sensitive information.
Six years on, Mr Blair's ex-chief of staff JonathanPowell has admitted thatthe "embarrassing" episode was fact, not fiction.
Footage allegedly shows British agent kicking 'spy rock' when it appeared tomalfunction
In a BBC interview, he said Britain did indeed plant a "spy rock" despiteattempts by then prime minister Mr Blair to brushit off.
He said: "There's not much you can say. The spy rock was embarrassing."
When the incident happened, Russian television broadcast X-rayfootage of the hollowed out rock showing circuitry inside which they said allowed a Russian informant to wirelessly store information inside it.
They also showed footage allegedly of British agents retrieving that information with one kicking the rock when it appeared to malfunction.
Jonathan Powell admitted the 'spy rock' scandal was real
The claims were widely dismissed for being simply too outlandish and a shameless attempt to frame the British government.
Sergei Ignatchenko, a spokesman for the FSB, said: "This is the first time we literally caught them red-handed in the process of contacting their agents here and received evidence that they finance a number of non-governmental organisations."
The incident was broadcast in Russia at a time when the then president Putin was seeking to justify tight new laws on human rights and pro-democracycampaigners.
He claimed the groups were being funded by Western government agencies, adding: "This law had been adopted to stop foreign powers interfering in the internalaffairs of the Russian Federation."
http://news.sky.com/home/world-news/article/16152341

Intelligence officer facing espionage charge had top-level clearance
The man at the centre of an alleged espionage scandal worked in a military communications nervecentre where sources say Sub-Lieutenant Jeffrey Paul Delisle would have had top-level clearance to peruse Canada’s defence secrets.
Sources say SLt. Delisle’s most recent posting, the ultra-secure HMCS Trinity communications centre in Halifax, is surrounded by barbed wire and protected by an electronic shield that blocks unauthorized transmissions.
*. Intelligence officer charged with passing secrets to foreign interests
*. Thousands of federalofficials under lifelong gag order, records show
*. Canadian data, foreign threats: Spying in the digital age
On Tuesday, the naval intelligence officer accused of spying had his bail hearing in a Halifax court delayed until next week at the request of his lawyer, who wanted more time to prepare. SLt. Delisle opted not to appear in court. “He doesn’t want to come up,” defence lawyer Cameron MacKeen toldthe judge, referring to the jail cells used by prisoners due in court.
What may be the biggest spy scandal in Canada in more than half a century exploded Monday after SLt. Delisle was charged with passing secrets to a “foreign entity” under Canada’sInformation Security Act. It’s the first charge of its kind ever laid and one where the maximum penalty is the toughest possible under this country’s justice system: life in prison.
Details are slowly emerging about the Canadian Forces officer, despite a curtain of silence that’s been lowered bytight-lipped authorities, including the fact he declared bankruptcy in 1998.
The RCMP, Canadian military and the government refused to discuss the case but Defence Minister PeterMacKay took pains to insist the espionage allegations had not hurt the country’s relations with its foreign partners. “Let me assure you that our allies have full confidence in Canada.”
Sources say the Trinity communications centre was also privy to intelligence from Canada’s allies including the United States, Britain and Australia.
Officials at the U.S. andBritish embassies in Canada were not available for commentTuesday.
Mr. MacKay on Tuesdayrefused to identify which country SLt. Delisle is alleged to have been spying for. “I’m not denying or confirming anything,” he said when asked to comment on news reports saying the recipient of the secretswas Russia.
“I am not going to play Clue,” he said.
A woman at Russia’s embassy in Ottawa said the embassy had no comment at this time on the Delisle story.
Sources said the Canadian government is currently conductinga damage assessment to discern how much national security has been compromised.
CTV reported Tuesday night that Canada is preparing a “measured response” to Russia that could include either summoning the Russian ambassador or expelling Russian diplomats.
However, the network said, the Harper government is leery ofpoisoning relations with Moscow and causing a public spat because the Prime Minister is headed to Russia later this year for a APEC summit.
Little is known about SLt. Delisle, 40, other than he most recently resided in Bedford, N.S., a suburb of Halifax, with a womanand three children.
His myspace.compagelists him as single as of2008 and filings show a man with the same name and date of birth as the espionage suspect declared bankruptcy in Nova Scotia in February 1998 – less than two years after Jeffrey Delisle joined the Canadian Forces reserves.
It was barely a month before his 27th birthday, according to the record of the proceeding, and he owed $18,587 while declaring assets of$1,000.
He received a discharge from bankruptcy in November of 1998, filings show. The address given during the proceeding is currently assigned to alower-level apartment at the back of a small house in Beaver Bank, a different suburb of Halifax.
Michael Hennessy, a professor of history and war studies at Royal Military College in Kingston, said the case is really unmatched in Canadian history – if the charges are proven. “For an officer and intelligence officer in particular to be involved in such behaviour is a massivebetrayal of trust. It really is unprecedented.”
SLt. Delisle originally joined the Forces as a reservist in 1996 and later became an officer in 2008 after completing a bachelor of arts at Royal Military College.
http://m.theglobeandmail.com/news/politics/intelligence-officer-facing-espionage-charge-had-top-level-clearance/article2305116/?service=mobile