Margaret Thatcher used "Echelon"
to spy on her party,
says Canadian agent.



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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