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Blame Canada: Pentagon Wonders If Neighbors Are 'Bad Guys'

TED BRIDIS   12/ 3/09 02:48 PM ET   AP

Spy Coins

WASHINGTON — Can Canada be trusted?

In the midst of what turned out to be a bogus espionage scare over commemorative coins, senior Pentagon officials speculated whether Canadians – widely considered to be among America's closest allies – might be "bad guys" involved in the spy caper. "Who knows?" one official wrote in secret e-mails obtained this week by The Associated Press.

The espionage warnings from the Defense Department caused an international sensation a few years ago over reports of mysterious coins with radio frequency transmitters, until they were debunked. The culprit turned out to be commemorative "poppy" quarters with a bright red flower manufactured in Canada.

But at the height of the mystery, senior Pentagon officials speculated about Canada's involvement, according to e-mails marked "Secret/NoForn" and obtained by the AP under the U.S. Freedom of Information Act. The messages reflect the no-holds-barred attitudes over an inherent lack of trust within U.S. spy agencies.

"I don't think it is an issue of the Canadians being the bad guys," the Pentagon's counterintelligence chief wrote, "but then again, who knows."

In the e-mails, released to the AP with names blacked out but job titles disclosed, Pentagon officials question whether they should warn military officers in the U.S. Northern Command, who regularly met Canadian counterparts about classified subjects inside bug-proof, government meeting rooms. The rooms are known as secure compartmentalized information facilities, or SKIFs.

"Isn't the Canadian piece something that should be briefed to Northcom since the Canadians sit in their SKIFs?" asked the Pentagon's deputy director for counterintelligence oversight.

"Good point," replied the Pentagon's acting director for counterintelligence. "It is possible that DSS (the U.S. Defense Security Service) sent their report to Northcom. Then again, I don't think it is an issue of the Canadians being the bad guys, but then again, who knows."

Who knows?

Canada is among the closest of U.S. allies, its continental northern neighbor and the leading oil supplier for the U.S. The intelligence services of the two countries are extraordinarily tight and routinely share sensitive secrets. President Barack Obama chose Canada as the destination of his first foreign trip, to underscore what he described as the two countries' long-standing and growing friendship.

"I love this country and think that we could not have a better friend and ally," said Obama, whose brother-in-law is Canadian, during his February visit to Ottawa.

The State Department, with tongue in cheek, reiterated Thursday that the U.S. trusts Canada.

"From the State Department's point of view, Canada is a trustworthy ally," spokesman Mark Toner told reporters. "I'd refer you to the Pentagon for anything else."

In sensational warnings that circulated publicly in late 2006 and early 2007, the Pentagon's Defense Security Service said coins with radio transmitters were found planted on U.S. Army contractors with classified security clearances on at least three occasions between October 2005 and January 2006 as the contractors traveled through Canada.

In January 2007, the government abruptly reversed itself and said the warnings weren't true. But the case remained a mystery until months later, when AP learned that the flap had been caused by suspicions over the odd-looking Canadian "poppy" quarter with a bright red flower. The silver-colored 25-cent piece features the red image of a poppy – Canada's flower of war remembrance – inlaid on a maple leaf.

What suspicious contractors believed to be "nanotechnology" on the coins actually was a protective coating the Royal Canadian Mint applied to prevent the poppy's red color from rubbing off. The mint produced nearly 30 million such quarters in 2004 commemorating Canada's 117,000 war dead.

The Pentagon turned over the latest e-mails from inside its Office of the Undersecretary for Defense for Intelligence nearly two years after the AP requested them under the Freedom of Information Act. Many of the e-mails were censored over what the Pentagon said was national security and personal privacy.

Pentagon spokesman Col. David Lapan declined to identify the names of the Defense Department officials who held those job titles in early 2007 and invited the AP to file a lawsuit to uncover their identities. "We're not going to be complicit in providing information that is protected," Lapan said in a statement.

One e-mail included a curious message on the same day the Defense Security Service publicly disavowed its warning about the spy coins. "I am guessing y'all know the status of the Canadian coin situation," it read. It called for an internal meeting "to chat about the next step to put Humpty together again" and suggested notifying the media – and the Canadians.

___

On the Net:

E-mails: http://wid.ap.org/documents/canada_northcom.pdf

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WASHINGTON — Can Canada be trusted? In the midst of what turned out to be a bogus espionage scare over commemorative coins, senior Pentagon officials speculated whether Canadians – widely...
WASHINGTON — Can Canada be trusted? In the midst of what turned out to be a bogus espionage scare over commemorative coins, senior Pentagon officials speculated whether Canadians – widely...
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HUFFPOST COMMUNITY MODERATOR
MartyJo
If the world didn't suck, we'd all fall off.
09:07 PM on 12/28/2009
This is Bush/Cheney paranoria at it's finest.... I've travelled this world extensively and now realize why Americans are so h8ed everywhere..... US media achieves du.mbing down the populace instead of reporting facts over opinions. Republican reign has successfully divided a nation once respected. Pathetic.
12:10 PM on 12/05/2009
This story highlights the sick, suspicious attitude held by some of our national security leaders. It would remain as simply an indicator of this condition were it not for my own experiences crossing our northern border that have revealed a suspicious distrust of anything Canadian on the part of border officials.

I hope AP takes up the Pentagon's offer to file in the courts for the name, rank, and serial numbers of those security leaders that perpetuate these lies - serious allegations that they couldn't be bothered to debunk.
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stargazer13
To Love One Is To Love All
11:55 AM on 12/05/2009
well it seem the D.O.D. is very jumpy very jumpy
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HUFFPOST SUPER USER
avicenna
02:56 AM on 12/05/2009
This is the age that intercepted emails reveal the truth despite reason - first the climate change hoax and now the truth about those sneaky Canadians with their nanotechnology. Good thing for American Intelligence or else we'd all be duped before it's too late and we've retardedly reduced our GHGs and continued our symbiotic relationship with those polite do-gooders.
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HUFFPOST SUPER USER
ljkcan
I don't let geographical borders limit my thinking
08:56 PM on 12/04/2009
All I can think of are those elderly veterans dressed in their legion uniforms selling poppies in the mall.
How paranoid can the US get. As a Canadian I find it laughable that these bozo's thought the poppy was a listening device. It is a quarter with an embossed poppy in the middle oh scary.

Since 9/11 we have bent over backwards for the US govt passports to cross over for a day of shopping,
passports even if your flight lands in the US but you are going elsewhere. If they want scary and paranoid just look at the fringe element of the GOP and tea Parties. A tea party in Canada is a bunch of elderly ladies having tea.

If it makes them feel better the poppy fades off the quarter after a while.
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HUFFPOST SUPER USER
4midable
08:50 PM on 12/04/2009
America treats everyone as the enemy. Everything in this country is motivated by fear and the belief "we can go it alone." The more Palin, Beck and Limbaugh and the other chicken hawks, the worse it gets.
08:10 PM on 12/04/2009
OMG; As a Canadian, how many of us have those 'strange' remembrance' coins. I still find it amazing that America hasn't divided into 50 little countries. They don't trust anything or anyone. They must be Republicans with all I've heard for the past 40 years.
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HUFFPOST SUPER USER
fedupwiththis
09:16 PM on 12/04/2009
We're not done yet!
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HUFFPOST SUPER USER
ljkcan
I don't let geographical borders limit my thinking
09:47 PM on 12/04/2009
If they only knew the significance of the poppy and why we wear it. All of us all wearing poppies on our lapels in Nov up until Nov 11th.

Perhaps they should read the poem "in Flanders Field".
04:21 PM on 12/04/2009
We Canadians hate you for your freedoms.
03:38 PM on 12/04/2009
American paranoia, once again!
11:31 AM on 12/04/2009
Ever since the Tar Sands oil fields became profitable, I've suspected that Canada has strong links to al-Qaeda. Go Pentagon go!
08:11 PM on 12/04/2009
No; but they did with Bush / Cheney, which was really sick.
11:05 AM on 12/04/2009
The invasion of Canada is long overdue. Perpetual war on the cheap. I like our chances.
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HUFFPOST SUPER USER
Furby2
11:14 AM on 12/04/2009
Canadian will run that by China and get back to you shortly.
08:13 PM on 12/04/2009
Forgot, we have Cuba on the other side
10:55 AM on 12/04/2009
The pentagon you say
the place of numerous paranoid and surch for bacon types

It's not nice to hear some dout a long time friend over some BOGUS '
something
Is ist so easy for you to wipe the slate clean off a trusting and enduring
friendship over a prank
WOW, no wonder you don't have that many friends in the world
By the way, Someone you pay monthly does not count as a friend
Canada friendship is FREE of charge

I'll let this one go for the sake of friendship

America , I still Love Ya
08:15 PM on 12/04/2009
No friends is right: Many countries last year going to ban Cheney/Bush from entering their country. Want them on 'terrorist list."
10:32 AM on 12/04/2009
That's it ....I as a proud Canadian and supporter of the Glorious Toronto Maple Leafs am calling for a boycott of all "shipments of "CANADIAN BACON" to you ungrateful Americans..... May our beloved John Candy roll over in his large coffin....

A true north strong and free opinion ....... God bless the Canadian Beaver ....
10:47 AM on 12/04/2009
And may god make the Looney stronger than the Euro

so I can on a shopping spree in America

So take that you Americans Molson Canadian beer guzlers

One more whyne from you and we'll stop

all shippments of BC green astro turf..wink, wink
12:13 PM on 12/05/2009
Footnote: I hear more Bud and Coors is consumed in Canada than 'Blue' and 'Canadian'. What's up with that?!
08:36 AM on 12/04/2009
Actually my thought was to have BC annex Washington State until they decided to host the Olympics - now there is no more money for social services - so much for that idea. Hey at least there is a nice road up to Whistler now.
10:46 PM on 12/03/2009
"Canada is among the closest of U.S. allies"

canada is our closest ally; can't get closer than our next door neighbor
HUFFPOST SUPER USER
Jimboy17
09:25 AM on 12/04/2009
Yes, and part of your country is in ours, and vice versa. The whole story is rather ridiculous, and makes me think of keystone kops.
12:20 PM on 12/04/2009
I know.

We are so close. We screw each other all the time.