

By JOHN DEANS
Chief Political Correspondent
London Daily Mail, Saturday Feb. 26, 2000
MARGARET Thatcher used a secret overseas intelligence network to spy on
enemies within her Cabinet, it was claimed yesterday.
The former Tory prime minister arranged for an agency codenamed Echelon to
'intercept traffic' from two ministers who she claimed 'weren't on side'
according to former Canadian secret agent Mike Frost.
He told how Baroness Thatcher took advantage of highly classified links
with his service to spy on leading colleagues in 1983.
He makes the claim in a programme to be broadcast on U.S. television
tomorrow.
A Canadian intelligence operative from 1972 to 1992, he tells how Lady
Thatcher allegedly exploited Echelon, which was set up by the U.S., Britain
Canada, New Zealand and Australia in 1948, to tap into the activities of
her most prominent Conservative critics. With an ability to infiltrate both
national and international telephone conversations, fax messages and now
e-mails Echelon offers the potential for political leaders to cheek on the
activities of close colleagues while circumventing British intelligence
systems.
In the 60 Minutes programme Mr Frost does not name the ministers, although
it is clear they were not suspected of espionage or of being traitors.
However, it's well known that a cabal of so-called Tory 'wets' continued to
oppose and privately plot against Lady Thatcher as she used her popularity
after the Falklands War to pursue a right-wing policy. The most prominent
left- wingers in the Cabinet at the time were Michael Heseltine, Jim - now
Lord Prior, and Peter - now Lord Walker.
They survived the earlier cull of the wets, but Lord Prior had been shunted
off the Northern Ireland Office, and Lord Walker sidelined to agriculture,
followed by energy.
Mr Heseltine remained as Defence Secretary, until he sacked himself by
walking out of the Cabinet in 1986 over the Westland affair.
As Tory critics continued to agitate within the party, and staged secret
breakfast meetings to plot and Scheme against the premier, there is
little doubt that she would have done all in her power to find out what was
going on.
In her memoirs, The Downing Street Years, Baroness Thatcher admitted that
relations with Mr Heseltine had 'never been easy'. And when he was moved
from the Environment Department to Defence in 1983, it was clear that she
never really trusted him and regarded the flamboyant politician as a threat
to her position.
'Michael's sense of priorities was gravely distorted by his personal
ambitions and political obsessions,' she wrote. Yesterday, Lady Thatcher's
office refused to make any statement. 'We are not commenting on this story
at all,' said a spokesman.
Lord Prior was out of the country and unable to be contacted, while Mr
Heseltine was not responding to calls.
Downing Street officials said the allegations would be passed on for Lady
Thatcher's attention.
The Echelon system relies on a system of computers and satellites connected
through listening posts around the globe, including installations in
Yorkshire and Cornwall.
Only a few days ago a report to the European Parliament claimed it was used
to help American companies beat their EU rivals to secure international
industrial contracts. in court proceedings without fear of defamation actions.
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